N-CSR 1 a2150018zn-csr.txt N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-7440 --------------------------------------------- DIMENSIONAL EMERGING MARKETS VALUE FUND INC. -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 1299 Ocean Avenue, 11th Floor, Santa Monica, CA 90401 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Catherine L. Newell, Esquire, Vice President and Secretary Dimensional Emerging Markets Value Fund Inc., 1299 Ocean Avenue, 11th Floor, Santa Monica, CA 90401 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 310-395-8005 Date of fiscal year end: November 30 Date of reporting period: November 30, 2004 ITEM 1. REPORTS TO STOCKHOLDERS. ================================================================================ DFA Investment Dimensions Group Inc. Emerging Markets Value Portfolio and Dimensional Emerging Markets Value Fund Inc. Annual Report Year Ended November 30, 2004 ================================================================================ DFA INVESTMENT DIMENSIONS GROUP INC. EMERGING MARKETS VALUE PORTFOLIO AND DIMENSIONAL EMERGING MARKETS VALUE FUND INC. ANNUAL REPORT TABLE OF CONTENTS
PAGE ---- DFA INVESTMENT DIMENSIONS GROUP INC. -- EMERGING MARKETS VALUE PORTFOLIO Performance Chart 1 Management's Discussion and Analysis 2 Disclosure of Fund Expenses 5 Statement of Assets and Liabilities 6 Statement of Operations 7 Statements of Changes in Net Assets 8 Financial Highlights 9 Notes to Financial Statements 10 Report of Independent Registered Certified Public Accounting Firm 13 DIMENSIONAL EMERGING MARKETS VALUE FUND INC. Performance Chart 14 Disclosure of Fund Expenses 15 Disclosure of Portfolio Holdings 16 Schedule of Investments 17 Statement of Assets and Liabilities 22 Statement of Operations 23 Statements of Changes in Net Assets 24 Financial Highlights 25 Notes to Financial Statements 26 Report of Independent Registered Certified Public Accounting Firm 30 FUND MANAGEMENT 31 VOTING PROXIES ON FUND PORTFOLIO SECURITIES 37
This report is submitted for the information of the Funds' shareholders. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. i [THIS PAGE INTENTIONALLY LEFT BLANK] DFA INVESTMENT DIMENSIONS GROUP INC. PERFORMANCE CHART [CHART] EMERGING MARKETS VALUE PORTFOLIO VS. MSCI EMERGING MARKETS FREE INDEX (PRICE-ONLY) APRIL 1, 1998-NOVEMBER 30, 2004 GROWTH OF $10,000
EMERGING MARKETS VALUE PORTFOLIO MSCI EMERGING MARKETS FREE INDEX (PRICE-ONLY) 4/1/98 $ 10,000 $ 10,000 4/30/98 $ 9,592 $ 10,000 5/31/98 $ 8,447 $ 8,599 6/30/98 $ 7,681 $ 7,680 7/31/98 $ 8,009 $ 7,896 8/31/98 $ 5,930 $ 5,584 9/30/98 $ 5,900 $ 5,922 10/31/98 $ 7,164 $ 6,538 11/30/98 $ 8,329 $ 7,075 12/31/98 $ 8,617 $ 6,946 1/31/99 $ 8,493 $ 6,829 2/28/99 $ 8,565 $ 6,890 3/31/99 $ 9,517 $ 7,777 4/30/99 $ 11,910 $ 8,727 5/31/99 $ 11,899 $ 8,649 6/30/99 $ 13,348 $ 9,613 7/31/99 $ 13,059 $ 9,337 8/31/99 $ 13,172 $ 9,416 9/30/99 $ 12,748 $ 9,085 10/31/99 $ 13,308 $ 9,270 11/30/99 $ 14,157 $ 10,098 12/31/99 $ 15,877 $ 11,370 1/31/2000 $ 15,831 $ 11,415 2/29/2000 $ 15,413 $ 11,562 3/31/2000 $ 15,197 $ 11,601 4/30/2000 $ 14,281 $ 10,485 5/31/2000 $ 13,274 $ 10,028 6/30/2000 $ 13,297 $ 10,349 7/31/2000 $ 12,730 $ 9,805 8/31/2000 $ 12,742 $ 9,839 9/30/2000 $ 11,814 $ 8,968 10/31/2000 $ 10,976 $ 8,313 11/30/2000 $ 10,150 $ 7,581 12/31/2000 $ 10,453 $ 7,754 1/31/2001 $ 11,453 $ 8,805 2/28/2001 $ 10,523 $ 8,108 3/31/2001 $ 9,512 $ 7,275 4/30/2001 $ 9,959 $ 7,613 5/31/2001 $ 10,190 $ 7,679 6/30/2001 $ 10,074 $ 7,501 7/31/2001 $ 9,798 $ 7,008 8/31/2001 $ 9,913 $ 6,927 9/30/2001 $ 8,305 $ 5,840 10/31/2001 $ 8,638 $ 6,199 11/30/2001 $ 9,683 $ 6,840 12/31/2001 $ 10,350 $ 7,373 1/31/2002 $ 11,171 $ 7,614 2/28/2002 $ 11,022 $ 7,730 3/31/2002 $ 11,682 $ 8,164 4/30/2002 $ 12,005 $ 8,197 5/31/2002 $ 11,857 $ 8,044 6/30/2002 $ 11,010 $ 7,428 7/31/2002 $ 10,574 $ 6,844 8/31/2002 $ 10,599 $ 6,943 9/30/2002 $ 9,329 $ 6,182 10/31/2002 $ 9,727 $ 6,578 11/30/2002 $ 10,487 $ 7,024 12/31/2002 $ 10,174 $ 6,785 1/31/2003 $ 10,328 $ 6,746 2/28/2003 $ 10,238 $ 6,534 3/31/2003 $ 10,007 $ 6,324 4/30/2003 $ 11,323 $ 6,856 5/31/2003 $ 12,167 $ 7,327 6/30/2003 $ 12,704 $ 7,728 7/31/2003 $ 12,997 $ 8,191 8/31/2003 $ 13,854 $ 8,722 9/30/2003 $ 14,531 $ 8,771 10/31/2003 $ 15,822 $ 9,503 11/30/2003 $ 16,001 $ 9,600 12/31/2003 $ 17,926 $ 10,285 1/31/2004 $ 18,418 $ 10,619 2/29/2004 $ 19,610 $ 11,096 3/31/2004 $ 19,856 $ 11,197 4/30/2004 $ 18,457 $ 10,250 5/31/2004 $ 17,913 $ 10,017 6/30/2004 $ 18,239 $ 10,039 7/31/2004 $ 18,474 $ 9,828 8/31/2004 $ 19,295 $ 10,214 9/30/2004 $ 20,566 $ 10,781 10/31/2004 $ 21,208 $ 11,016 11/30/2004 $ 23,502 $ 12,031
AVERAGE ANNUAL ONE FIVE TEN TOTAL RETURN YEAR YEARS YEARS ------------------------------------------------------- 46.76% 10.56% 13.68%
Past performance is not predictive of future performance. Prior to April 2002, the returns shown reflect a reimbursement fee of 0.5% of the net asset value at the time of purchase. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. MSCI Emerging Markets Free Index (price-only) courtesy of Morgan Stanley Capital International. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS INTERNATIONAL EQUITY MARKET REVIEW YEAR ENDED NOVEMBER 30, 2004 International equity markets had generally positive returns for the year under review. When expressed in local currencies, prices rose in all of the largest country constituents of the MSCI EAFE Index. Net returns were enhanced considerably by appreciation in the euro, Japanese yen, Swiss franc, British pound, Australian dollar and Swedish krona relative to the U.S. dollar. The overall effect of currency exchange rate changes was a material improvement in returns for U.S. dollar-based investors: total return for the MSCI EAFE Index (net dividends) was 13.08% in local currency and 24.19% in U.S. dollars. % TOTAL RETURNS FOR YEAR ENDED NOVEMBER 30, 2004
LOCAL CURRENCY U.S. DOLLAR TEN LARGEST DEVELOPED MARKETS RETURN RETURN ----------------------------- -------- ------------ United Kingdom (net dividends) 12.03% 24.51% Japan (net dividends) 10.69% 17.86% France 12.62% 24.86% Switzerland 5.03% 19.32% Germany 11.22% 23.29% Netherlands 6.65% 18.21% Australia 28.04% 37.29% Italy 17.28% 30.03% Spain 23.45% 36.88% Sweden 29.85% 45.79%
---------- Gross returns unless otherwise noted. Source: Morgan Stanley Capital International Mirroring the U.S. experience, large company growth stocks were the poorest-performing asset class in international markets, while small company stocks had the best relative results. % TOTAL RETURNS FOR YEAR ENDED NOVEMBER 30, 2004 (U.S. DOLLARS) MSCI EAFE Small Cap Index (net dividends) 32.17% Citigroup EPAC Extended Market Index (small companies) 30.10% MSCI EAFE Value Index (net dividends) 29.32% MSCI EAFE Index (net dividends) 24.19% MSCI EAFE Growth Index (net dividends) 19.07%
2 Returns in emerging markets were higher, on average, than in developed country markets, although results varied widely among individual countries. For the year under review, total returns were 25.32% for the MSCI Emerging Markets Free Index (net dividends), and 24.19% for the MSCI EAFE Index (net dividends). % TOTAL RETURNS FOR YEAR ENDED NOVEMBER 30, 2004
TOTAL RETURNS COUNTRY (U.S. $) ------- -------- Brazil 34.91% Argentina 25.55% Thailand 2.99% Chile 31.00% Indonesia 49.70% Hungary 84.84% Israel 14.51% Poland 63.81% Taiwan 7.55% Mexico 43.28% Malaysia 17.71% Philippines 38.36% Turkey 57.65% South Korea 26.73%
---------- Source: DataStream International MASTER-FEEDER STRUCTURE The portfolio described below, called a "Feeder Fund", does not buy individual securities directly; instead, the portfolio invests in a corresponding fund called a "Master Fund". The Master Fund, in turn, purchases stocks, bonds, and/or other securities. EMERGING MARKETS VALUE PORTFOLIO The Emerging Markets Value Portfolio (the "Portfolio") seeks to capture the returns of value stocks in selected emerging markets by purchasing shares of the Dimensional Emerging Markets Value Fund Inc., (the "Master Fund") which invests in such stocks. The investment strategy employs a disciplined, quantitative approach, emphasizing broad diversification and consistent exposure to emerging markets value stocks, but does not attempt to track closely a specific equity index. As of November 30, 2004, the Master Fund held 1,333 stocks in 16 countries. Through March 2004, allocations reflected a weighting scheme targeting fixed country weights. Argentina, Chile, Hungary, Philippines, and Poland receive a half-weight due to their small size and low liquidity relative to other emerging markets. Since April 2004, target country weights in the Master Fund were determined by the relative free-float adjusted market capitalization of eligible securities within each country. Target country weights are also capped at a ceiling set by the manager to improve portfolio diversification and limit single-country exposure risk. Free-float adjustment excludes the share capital of a company that is not freely available for trading in the public equity markets by international investors. Throughout the year ended November 30, 2004, the Master Fund was essentially fully invested in equities throughout the year: cash equivalents averaged less than 0.80% of the Master Fund's assets. As a result of the Master Fund's diversified investment approach, performance was determined principally by broad structural trends in emerging country stock markets, rather than the behavior of a limited number of stocks. For the year ended November 30, 2004, emerging markets value stocks outperformed developed country stocks as well as core emerging markets strategies. Total returns were 24.19% for the MSCI EAFE Index (net dividends), 25.32% for the MSCI Emerging Markets Free Index (net dividends), and 46.76% for the Emerging Markets Value Portfolio. Relative to the MSCI Emerging Markets Free Index, superior performance of the Portfolio was primarily due to greater exposure to stocks with pronounced value characteristics, defined as a relatively high book-to-market ratio. The average portfolio weight for stocks falling into the top quartile when ranked by book-to-market ratio was 71% compared to 18% for the Index. 3 DIMENSIONAL EMERGING MARKETS VALUE FUND INC. Dimensional Emerging Markets Value Fund Inc. (the "Fund") seeks to capture the returns of value stocks in selected emerging markets. The investment strategy employs a disciplined, quantitative approach, emphasizing broad diversification and consistent exposure to emerging markets value stocks, but does not attempt to closely track a specific equity index. As of November 30, 2004, the Fund held 1,333 stocks in 16 countries. Through March 2004, allocations reflected a weighting scheme targeting fixed country weights. Argentina, Chile, Hungary, Philippines, and Poland receive a half-weight due to their small size and low liquidity relative to other emerging markets. Since April 2004, target country weights in Dimensional Emerging Markets Value Fund Inc. were determined by the relative free-float adjusted market capitalization of eligible securities within each country. Target country weights are also capped at a ceiling set by the manager to improve portfolio diversification and limit single-country exposure risk. Free-float adjustment excludes the share capital of a company that is not freely available for trading in the public equity markets by international investors. Throughout the year ended November 30, 2004, the Fund was essentially fully invested in equities throughout the year: cash equivalents averaged less than 0.80% of the Fund's assets. As a result of the Fund's diversified investment approach, performance was determined principally by broad structural trends in emerging country stock markets, rather than the behavior of a limited number of stocks. For the year ended November 30, 2004, emerging markets value stocks outperformed developed country stocks as well as core emerging markets strategies. Total returns were 24.19% for the MSCI EAFE Index (net dividends), 25.32% for the MSCI Emerging Markets Free Index (net dividends), and 47.38% for the Dimensional Emerging Markets Value Fund Inc. Relative to the MSCI Emerging Markets Free Index, superior performance of the Fund was primarily due to greater exposure to stocks with pronounced value characteristics, defined as a relatively high book-to-market ratio. The average portfolio weight for stocks falling into the top quartile when ranked by book-to-market ratio was 71% compared to 18% for the Index. 4 DISCLOSURE OF FUND EXPENSES The following Expense Table is shown so that you can understand the impact of fees on your investment. All mutual funds have operating expenses. As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports, among others. Operating expenses, legal and audit services, which are deducted from a fund's gross income, directly reduce the investment return of the fund. A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended help you understand the ongoing fees (in dollars) of investing in the fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Tables below illustrates your fund's costs in two ways. - ACTUAL FUND RETURN. This section helps you to estimate the actual expenses after fee waivers that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and "Expenses Paid During Period" shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, a $7,500 account value divided by $1,000=7.5), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period." - HYPOTHETICAL 5% RETURN. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case -- because the return used is not the fund's actual return -- the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's cost by comparing this hypothetical example with the hypothetical examples that appear in shareholders reports of other funds. Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect any transactional costs (if any). The "Annualized Expense Ratio" represents the actual expenses for the six month period indicated and may be different from the expense ratio in the Financial Highlights which is for the year ended November 30, 2004. FOR THE PERIOD JUNE 1, 2004 TO NOVEMBER 30, 2004 EXPENSE TABLES
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 6/01/04 11/30/04 RATIO PERIOD* ------------ ------------ ------------ ------------ EMERGING MARKETS VALUE PORTFOLIO Actual Fund Return $ 1,000.00 $ 1,312.00 0.76% $ 4.39 Hypothetical 5% Return $ 1,000.00 $ 1,021.20 0.76% $ 3.84 DIMENSIONAL EMERGING MARKETS VALUE FUND INC. Actual Fund Return $ 1,000.00 $ 1,314.80 0.32% $ 1.85 Hypothetical 5% Return $ 1,000.00 $ 1,023.40 0.32% $ 1.62
---------- * Expenses are equal to the fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366. 5 DFA INVESTMENT DIMENSIONS GROUP INC. EMERGING MARKETS VALUE PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 2004 (AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS) ASSETS: Investment in Dimensional Emerging Markets Value Fund Inc. (32,485,724 Shares, Cost $569,789) at Value+ $ 895,631 Receivable for Fund Shares Sold 1,576 Prepaid Expenses and Other Assets 15 -------------- Total Assets 897,222 -------------- LIABILITIES: Payables: Investment Securities Purchased 1,363 Fund Shares Redeemed 213 Due to Advisor 281 Accrued Expenses and Other Liabilities 52 -------------- Total Liabilities 1,909 -------------- NET ASSETS $ 895,313 ============== SHARES OUTSTANDING, $.01 PAR VALUE (Authorized 100,000,000) 49,941,788 ============== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 17.93 ============== NET ASSETS CONSIST OF: Paid-in Capital $ 578,904 Accumulated Net Investment Income (Loss) (8) Accumulated Net Realized Gain (Loss) (9,425) Unrealized Appreciation (Depreciation) from Investment Securities 325,842 -------------- Total Net Assets $ 895,313 ==============
---------- + See Note B to Financial Statements. See accompanying Notes to Financial Statements. 6 STATEMENT OF OPERATIONS FOR THE YEAR ENDED NOVEMBER 30, 2004 (AMOUNTS IN THOUSANDS) INVESTMENT INCOME Income Distributions Received from Dimensional Emerging Markets Value Fund Inc. $ 10,956 -------------- EXPENSES Administrative Services 2,441 Accounting & Transfer Agent Fees 17 Legal Fees 15 Audit Fees 3 Filing Fees 84 Shareholders' Reports 24 Directors' Fees and Expenses 10 Other 7 -------------- Total Expenses 2,601 -------------- NET INVESTMENT INCOME (LOSS) 8,355 -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES Capital Gain Distributions Received from Dimensional Emerging Markets Value Fund Inc. 4,408 Net Realized Gain (Loss) on Investment Securities Sold (2,987) Change in Unrealized Appreciation (Depreciation) of Investment Securities 234,247 -------------- NET GAIN (LOSS) ON INVESTMENT SECURITIES 235,668 -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 244,023 ==============
See accompanying Notes to Financial Statements. 7 STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS)
YEAR YEAR ENDED ENDED NOV. 30, NOV. 30, 2004 2003 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS Operations: Net Investment Income (Loss) $ 8,355 $ 5,044 Capital Gain Distributions Received from Dimensional Emerging Markets Value Fund Inc. 4,408 -- Net Realized Gain (Loss) on Investment Securities Sold (2,987) (717) Change in Unrealized Appreciation (Depreciation) of Investment Securities 234,247 94,657 ------------ ------------ Net Increase (Decrease) in Net Assets Resulting from Operations 244,023 98,984 ------------ ------------ Distributions From: Net Investment Income (12,625) (1,969) Net Long-Term Gains (803) (1,048) ------------ ------------ Total Distributions (13,428) (3,017) ------------ ------------ Capital Share Transactions (1): Shares Issued 332,075 208,413 Shares Issued in Lieu of Cash Distributions 10,785 3,017 Shares Redeemed (81,177) (22,878) ------------ ------------ Net Increase (Decrease) from Capital Share Transactions 261,683 188,552 ------------ ------------ Total Increase (Decrease) 492,278 284,519 NET ASSETS Beginning of Period 403,035 118,516 ------------ ------------ End of Period $ 895,313 $ 403,035 ============ ============ (1) SHARES ISSUED AND REDEEMED: Shares Issued 22,587 20,044 Shares Issued in Lieu of Cash Distributions 778 369 Shares Redeemed (5,596) (2,310) ------------ ------------ 17,769 18,103 ============ ============
See accompanying Notes to Financial Statements. 8 DFA INVESTMENT DIMENSIONS GROUP INC. EMERGING MARKETS VALUE PORTFOLIO FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30, 2004 2003 2002 2001 2000 ------------ ------------ ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 12.53 $ 8.42 $ 8.43 $ 8.97 $ 13.67 ------------ ------------ ------------ ------------ ------------ INCOME FROM INVESTMENT OPERATIONS Net Investment Income (Loss) 0.21 0.19 0.18 0.18 0.10 Net Gains (Losses) on Securities (Realized and Unrealized) 5.54 4.13 0.49 (0.58) (3.56) ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 5.75 4.32 0.67 (0.40) (3.46) ------------ ------------ ------------ ------------ ------------ LESS DISTRIBUTIONS Net Investment Income (0.35) (0.14) (0.23) (0.09) (0.11) Net Realized Gains -- (0.07) (0.45) (0.05) (1.13) ------------ ------------ ------------ ------------ ------------ Total Distributions (0.35) (0.21) (0.68) (0.14) (1.24) ------------ ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 17.93 $ 12.53 $ 8.42 $ 8.43 $ 8.97 ============ ============ ============ ============ ============ Total Return 46.76% 52.59% 8.29% (4.60)% (28.30)% Net Assets, End of Period (thousands) $ 895,313 $ 403,035 $ 118,516 $ 60,999 $ 44,658 Ratio of Expenses to Average Net Assets (1) 0.77% 0.86% 0.85% 1.00% 1.04% Ratio of Net Investment Income to Average Net Assets 1.37% 2.41% 2.10% 2.34% 0.76% Portfolio Turnover Rate N/A N/A N/A N/A N/A Portfolio Turnover Rate of Master Fund Series 8% 10% 15% 19% 19%
---------- (1) Represents the combined ratio for the Portfolio and its respective pro-rata share of its Master Fund. N/A Refer to the respective Master Fund. See accompanying Notes to Financial Statements. 9 DFA INVESTMENT DIMENSIONS GROUP INC. NOTES TO FINANCIAL STATEMENTS A. ORGANIZATION: DFA Investment Dimensions Group Inc. (the "Group") is an open-end management investment company whose shares are offered, without a sales charge, generally to institutional investors and clients of registered investment advisors. The Group offers thirty-six portfolios, one of which, the Emerging Markets Value Portfolio (the "Portfolio") is included in this report. Of the remaining portfolios, thirty-five are presented within four separate reports. The Portfolio invests all of its assets in the Dimensional Emerging Markets Value Fund Inc. (the "Fund"). At November 30, 2004, the Portfolio owned 76% of the outstanding shares of the Fund. The financial statements of the Fund are included elsewhere in this report and should be read in conjunction with the financial statements of the Portfolio. B. SIGNIFICANT ACCOUNTING POLICIES: The following significant accounting policies are in conformity with accounting principles generally accepted in the United States of America. Such policies are consistently followed by the Fund in preparation of its financial statements. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operation during the reporting period. Actual results could differ from those estimates and those differences could be material. 1. SECURITY VALUATION: The shares of the Fund held by the Portfolio are valued at its respective daily net asset value. 2. DEFERRED COMPENSATION PLAN: Each eligible Director of the Group may elect participation in the Deferred Compensation Plan (the "Plan"). Under the Plan, effective January 1, 2002, such Directors may defer payment of a percentage of their total fees earned as a Director. These deferred amounts may be treated as though such amounts had been invested in shares of the following funds: U.S. Large Cap Value Portfolio, U.S. Micro Cap Portfolio, DFA International Value Portfolio, Emerging Markets Portfolio and/or DFA Two-Year Global Fixed Income Portfolio. Contributions made under the Plan and the change in unrealized appreciation (depreciation) and income, are included in Directors' Fees and Expenses. At November 30, 2004, the total liability for deferred compensation to Directors is included in Accrued Expenses and Other Liabilities in the amount of $9,668. 3. OTHER: Security transactions are accounted for on the trade date. Costs used in determining realized gains and losses on the sale of investment securities are on the basis of identified cost. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Expenses directly attributable to the Portfolio are directly charged. Common expenses of the Group are allocated using methods approved by the Board of Directors, generally based on average net assets. C. INVESTMENT ADVISOR: Dimensional Fund Advisors Inc. ("Dimensional" or the "Advisor") provides administrative services to the Portfolio, including supervision of services provided by others, providing information to the shareholders and the Board of Directors, and other administrative services. The Advisor provides investment advisory services to the Fund. For the year ended November 30, 2004, the Portfolio's administrative fees were accrued daily and paid monthly to the Advisor based on an effective annual rate of 0.40 of 1% of average daily net assets. Certain officers of the Group are also officers, directors and shareholders of the Advisor. 10 D. FEDERAL INCOME TAXES: The Portfolio has qualified and intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code for federal income tax purposes and to distribute substantially all of its taxable income and net capital gains to shareholders. Accordingly, no provision has been made for federal income taxes. Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences as of November 30, 2004, primarily attributable to reclassing distributions between realized gains and net investment income, were reclassified to the following accounts (amounts in thousands):
INCREASE INCREASE (DECREASE) (DECREASE) ACCUMULATED UNDISTRIBUTED NET REALIZED NET INVESTMENT GAINS INCOME ------------ -------------- $ (803) $ 803
These reclassifications had no effect on net assets or net asset value per share. The tax character of dividends and distributions declared and paid during the years ended November 30, 2004 and 2003 were as follows (amounts in thousands):
ORDINARY INCOME AND SHORT-TERM LONG-TERM CAPITAL GAINS CAPITAL GAINS TOTAL ------------- ------------- ------------ 2004 $ 12,625 $ 803 $ 13,428 2003 1,969 1,048 3,017
Short-term gain distributions to shareholders are treated as ordinary income for tax purposes. As of November 30, 2004, the components of distributable earnings/(accumulated losses) were as follows (amounts in thousands):
TOTAL NET DISTRIBUTABLE UNDISTRIBUTED UNDISTRIBUTED EARNINGS/ NET INVESTMENT LONG-TERM (ACCUMULATED INCOME CAPITAL GAINS LOSSES) -------------- ------------- ------------- -- $ 2,916 $ 2,916
During the year ended November 30, 2004, the Portfolio utilized prior year capital loss carryforwards in the approximate amount of $776,000 to offset realized capital gains for federal income tax purposes. At November 30, 2004, the total cost of securities and net realized gains or losses on securities sold for federal income tax purposes were different from amounts reported for financial reporting purposes. The federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by the Portfolio, at November 30, 2004 were as follows (amounts in thousands):
NET UNREALIZED FEDERAL UNREALIZED UNREALIZED APPRECIATION/ TAX COST APPRECIATION DEPRECIATION (DEPRECIATION) ---------- ------------ ------------ -------------- $ 582,128 $ 313,503 -- $ 313,503
11 E. LINE OF CREDIT: The Portfolio, together with other Dimensional-advised portfolios, has entered into a $50 million unsecured discretionary line of credit effective June 2004 with its domestic custodian bank. Each portfolio is permitted to borrow, subject to its investment limitations, up to a maximum of $50 million, as long as total borrowings under the line of credit do not exceed $50 million in the aggregate. Borrowings under the line of credit are charged interest at the then current federal funds rate plus 1%. Each portfolio is individually, and not jointly liable for its particular advances under the line of credit. There is no commitment fee on the unused portion of the line of credit, since this is not a committed facility. The agreement for the discretionary line of credit may be terminated by either party at any time. The agreement for the line of credit expires on June 28, 2005. There were no borrowings under the discretionary line of credit by the Portfolio during the year ended November 30, 2004. The Portfolio, together with other Dimensional-advised portfolios, has also entered into an additional $150 million unsecured line of credit effective April 2004 with its international custodian bank. Each portfolio is permitted to borrow, subject to investment limitations, up to a maximum of $150 million, as long as total borrowings under the line of credit do not exceed $150 million in the aggregate. Each portfolio is individually, and not jointly liable for its particular advances under the line of credit. Borrowings under the line of credit are charged interest at rates agreed to by the parties at the time of borrowing. There is no commitment fee on the unused line of credit. The agreement for the line of credit expires in April 2005. There were no borrowings by the Portfolio under the line of credit during the year ended November 30, 2004. F. CONTRACTUAL OBLIGATIONS: In the normal course of business, the Portfolio enters into contracts that contain a variety of representations and warranties and which provide general indemnification. The Portfolio's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio and/or its affiliates that have not yet occurred. However, based on experience, the Portfolio expects the risk of loss to be remote. 12 REPORT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM TO THE SHAREHOLDERS OF EMERGING MARKETS VALUE PORTFOLIO AND BOARD OF DIRECTORS OF DFA INVESTMENT DIMENSIONS GROUP INC. In our opinion, the accompanying statement of assets and liabilities, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Emerging Markets Value Portfolio (one of the portfolios constituting DFA Investment Dimensions Group Inc., hereafter referred to as the "Portfolio") at November 30, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Portfolio's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2004 by correspondence with the transfer agent of the investee fund, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Fort Lauderdale, Florida January 14, 2005 13 DIMENSIONAL EMERGING MARKETS VALUE FUND INC. PERFORMANCE CHART [CHART] DIMENSIONAL EMERGING MARKETS VALUE FUND INC. VS. MSCI EMERGING MARKETS FREE INDEX (PRICE-ONLY) NOVEMBER 30, 1994-NOVEMBER 30, 2004 GROWTH OF $10,000
DIMENSIONAL EMERGING MSCI EMERGING MARKETS MARKETS VALUE FUND INC. FREE INDEX (PRICE-ONLY) 11/30/1994 $ 9,950 $ 10,000 12/31/1994 $ 9,198 $ 9,190 1/31/1995 $ 8,371 $ 8,207 2/28/1995 $ 8,087 $ 7,988 3/31/1995 $ 8,330 $ 8,020 4/30/1995 $ 8,852 $ 8,364 5/31/1995 $ 9,704 $ 8,787 6/30/1995 $ 9,603 $ 8,795 7/31/1995 $ 9,848 $ 8,978 8/31/1995 $ 9,510 $ 8,755 9/30/1995 $ 9,312 $ 8,702 10/31/1995 $ 9,011 $ 8,360 11/30/1995 $ 8,780 $ 8,204 12/31/1995 $ 9,079 $ 8,552 1/31/1996 $ 9,921 $ 9,151 2/29/1996 $ 9,653 $ 8,991 3/31/1996 $ 9,699 $ 9,044 4/30/1996 $ 10,021 $ 9,374 5/31/1996 $ 10,090 $ 9,309 6/30/1996 $ 10,194 $ 9,347 7/31/1996 $ 9,373 $ 8,692 8/31/1996 $ 9,679 $ 8,901 9/30/1996 $ 9,903 $ 8,966 10/31/1996 $ 9,667 $ 8,721 11/30/1996 $ 9,606 $ 8,856 12/31/1996 $ 9,673 $ 8,885 1/31/1997 $ 10,821 $ 9,483 2/28/1997 $ 11,088 $ 9,882 3/31/1997 $ 10,781 $ 9,599 4/30/1997 $ 10,668 $ 9,582 5/31/1997 $ 11,413 $ 9,830 6/30/1997 $ 11,874 $ 10,336 7/31/1997 $ 12,099 $ 10,469 8/31/1997 $ 10,836 $ 9,125 9/30/1997 $ 11,483 $ 9,363 10/31/1997 $ 10,051 $ 7,819 11/30/1997 $ 9,773 $ 7,529 12/31/1997 $ 10,151 $ 7,693 1/31/1998 $ 9,527 $ 7,084 2/28/1998 $ 10,263 $ 7,819 3/31/1998 $ 10,737 $ 8,132 4/30/1998 $ 10,600 $ 8,028 5/31/1998 $ 9,407 $ 6,903 6/30/1998 $ 8,595 $ 6,165 7/31/1998 $ 8,932 $ 6,338 8/31/1998 $ 6,604 $ 4,482 9/30/1998 $ 6,579 $ 4,754 10/31/1998 $ 7,989 $ 5,249 11/30/1998 $ 9,302 $ 5,679 12/31/1998 $ 9,675 $ 5,576 1/31/1999 $ 9,538 $ 5,482 2/28/1999 $ 9,629 $ 5,531 3/31/1999 $ 10,705 $ 6,243 4/30/1999 $ 13,397 $ 7,006 5/31/1999 $ 13,397 $ 6,944 6/30/1999 $ 15,027 $ 7,717 7/31/1999 $ 14,708 $ 7,496 8/31/1999 $ 14,838 $ 7,559 9/30/1999 $ 14,375 $ 7,293 10/31/1999 $ 15,005 $ 7,442 11/30/1999 $ 15,969 $ 8,107 12/31/1999 $ 17,966 $ 9,127 1/31/2000 $ 17,869 $ 9,164 2/29/2000 $ 17,402 $ 9,282 3/31/2000 $ 17,160 $ 9,313 4/30/2000 $ 16,139 $ 8,417 5/31/2000 $ 15,005 $ 8,051 6/30/2000 $ 15,036 $ 8,308 7/31/2000 $ 14,402 $ 7,871 8/31/2000 $ 14,417 $ 7,899 9/30/2000 $ 13,372 $ 7,199 10/31/2000 $ 12,423 $ 6,673 11/30/2000 $ 11,492 $ 6,086 12/31/2000 $ 11,837 $ 6,225 1/31/2001 $ 12,977 $ 7,068 2/28/2001 $ 11,925 $ 6,509 3/31/2001 $ 10,785 $ 5,840 4/30/2001 $ 11,275 $ 6,112 5/31/2001 $ 11,547 $ 6,165 6/30/2001 $ 11,415 $ 6,022 7/31/2001 $ 11,108 $ 5,626 8/31/2001 $ 11,239 $ 5,561 9/30/2001 $ 9,416 $ 4,688 10/31/2001 $ 9,802 $ 4,977 11/30/2001 $ 10,993 $ 5,491 12/31/2001 $ 11,746 $ 5,919 1/31/2002 $ 12,694 $ 6,112 2/28/2002 $ 12,528 $ 6,206 3/31/2002 $ 13,282 $ 6,554 4/30/2002 $ 13,650 $ 6,580 5/31/2002 $ 13,485 $ 6,458 6/30/2002 $ 12,528 $ 5,963 7/31/2002 $ 12,040 $ 5,494 8/31/2002 $ 12,068 $ 5,574 9/30/2002 $ 10,632 $ 4,962 10/31/2002 $ 11,083 $ 5,281 11/30/2002 $ 11,958 $ 5,639 12/31/2002 $ 11,604 $ 5,447 1/31/2003 $ 11,783 $ 5,416 2/28/2003 $ 11,679 $ 5,245 3/31/2003 $ 11,426 $ 5,077 4/30/2003 $ 12,929 $ 5,504 5/31/2003 $ 13,907 $ 5,882 6/30/2003 $ 14,527 $ 6,204 7/31/2003 $ 14,855 $ 6,575 8/31/2003 $ 15,842 $ 7,002 9/30/2003 $ 16,621 $ 7,041 10/31/2003 $ 18,115 $ 7,628 11/30/2003 $ 18,322 $ 7,707 12/31/2003 $ 20,539 $ 8,256 1/31/2004 $ 21,099 $ 8,525 2/29/2004 $ 22,480 $ 8,908 3/31/2004 $ 22,760 $ 8,989 4/30/2004 $ 21,176 $ 8,229 5/31/2004 $ 20,549 $ 8,041 6/30/2004 $ 20,941 $ 8,059 7/31/2004 $ 21,203 $ 7,890 8/31/2004 $ 22,167 $ 8,200 9/30/2004 $ 23,626 $ 8,655 10/31/2004 $ 24,380 $ 8,843 11/30/2004 $ 27,016 $ 9,658
AVERAGE ANNUAL ONE FIVE TEN TOTAL RETURN YEAR YEARS YEARS -------------------------------------------------- 47.38% 10.99% 10.67%
Past performance is not predictive of future performance. Prior to April 2002, the returns shown reflect a reimbursement fee of 0.5% of the net asset value at the time of purchase. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. MSCI Emerging Markets Free Index (price-only) courtesy of Morgan Stanley Capital International. 14 DISCLOSURE OF FUND EXPENSES The following Expense Table is shown so that you can understand the impact of fees on your investment. All mutual funds have operating expenses. As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports, among others. Operating expenses, legal and audit services, which are deducted from a fund's gross income, directly reduce the investment return of the fund. A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended help you understand the ongoing fees (in dollars) of investing in the fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Table below illustrates your fund's costs in two ways. - ACTUAL FUND RETURN. This section helps you to estimate the actual expenses after fee waivers that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and "Expenses Paid During Period" shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, a $7,500 account value divided by $1,000=7.5), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period." - HYPOTHETICAL 5% RETURN. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case -- because the return used is not the fund's actual return -- the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's cost by comparing this hypothetical example with the hypothetical examples that appear in shareholders reports of other funds. Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect any transactional costs (if any). The "Annualized Expense Ratio" represents the actual expenses for the six month period indicated and may be different from the expense ratio in the Financial Highlights which is for the year ended November 30, 2004. FOR THE PERIOD JUNE 1, 2004 TO NOVEMBER 30, 2004 EXPENSE TABLE
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING DIMENSIONAL EMERGING MARKETS VALUE FUND INC. 6/01/04 11/30/04 RATIO PERIOD* -------------------------------------------- ------------ ------------ ------------ ------------ Actual Fund Return $ 1,000.00 $ 1,314.80 0.32% $ 1.85 Hypothetical 5% Return $ 1,000.00 $ 1,023.40 0.32% $ 1.62
---------- *Expenses are equal to the fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366. 15 DISCLOSURE OF PORTFOLIO HOLDINGS (UNAUDITED) The SEC has adopted the requirement that all Funds file a complete schedule of investments with the SEC for their first and third fiscal quarters on Form N-Q for fiscal quarters starting after July 9, 2004. For Dimensional Emerging Markets Value Fund Inc., this would be for the fiscal quarters ending August 31 and February 28 (February 29 during leap year). The Form N-Q filing must be made within 60 days of the end of the quarter. Dimensional Emerging Markets Value Fund Inc. filed its first Form N-Q with the SEC on October 27, 2004. It is available upon request, without charge, by calling collect (310) 395-8005 or by mailing a request to Dimensional Fund Advisors, Inc., 1299 Ocean Avenue, 11th floor, Santa Monica, California 90401, or by visiting the SEC's website at http://www.sec.gov, or they may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the Public Reference Room). The SEC has also amended certain regulations to permit a fund to include in its reports to shareholders a "Summary Schedule of Portfolio Holdings" in lieu of a full Schedule of Investments. The Summary Schedule of Portfolio Holdings reports the fund's 50 largest holdings in unaffiliated issuers and any investments that exceed one percent of the fund's net assets at the end of the reporting period. The amendments also require that the Summary Schedule of Portfolio Holdings identify each category of investments that are held. The fund is required to file a complete Schedule of Investments with the SEC on Form N-CSR within ten days after mailing the annual report to shareholders. It will be available, upon request, without charge, by calling collect (310) 395-8005 or by mailing a request to Dimensional Fund Advisors, Inc., 1299 Ocean Avenue, 11th floor, Santa Monica, California 90401, or by visiting the SEC's website at http://sec.gov, or it may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the Public Reference Room). PORTFOLIO HOLDINGS The SEC adopted a requirement that all Funds present their categories of portfolio holdings in a table, chart or graph format in their annual and semi-annual shareholder reports, whether or not a schedule of investments is utilized. The following table, which presents portfolio holdings as a percent of total investments before short-term investments and collateral for loaned securities, is provided in compliance with such requirement. The categories shown below represent broad industry sectors. Each industry sector consists of one or more specific industry classifications. DIMENSIONAL EMERGING MARKETS VALUE FUND INC. Financials 26.9% Materials 26.4 Industrials 16.9 Consumer Discretionary 11.1 Consumer Staples 6.6 Information Technology 4.2 Energy 3.1 Telecommunication Service 1.6 Utilities 1.6 Health Care 1.6 ----- 100.0% =====
16 DIMENSIONAL EMERGING MARKETS VALUE FUND INC. SCHEDULE OF INVESTMENTS NOVEMBER 30, 2004
SHARES VALUE+ ------------ ------------------ SOUTH AFRICA -- (12.4%) COMMON STOCKS -- (12.4%) ABSA Group, Ltd. 1,028,666 $ 12,487,243 Advtech, Ltd. 620,958 137,103 Aeci, Ltd. 203,663 1,298,564 Afgri, Ltd. 745,102 925,301 African Life Assurance Co., Ltd. 333,611 950,056 * Afrikander Lease, Ltd. 246,760 76,625 AG Industries, Ltd. 356,487 168,569 Allied Electronics Corp., Ltd. 259,018 742,274 Anglo American PLC 234,915 5,610,864 Argent Industrial, Ltd. 119,621 198,505 * AST Group, Ltd. 195,883 24,055 Aveng, Ltd. 661,562 1,326,253 Barloworld, Ltd. 397,633 6,734,018 * Bell Equipment, Ltd. 188,200 201,219 * Bridgestone Firestone Maxiprest, Ltd. 113,271 21,113 * Business Connexion Group, Ltd. 465,381 398,170 Bytes Technology Group, Ltd. 314,654 412,091 Capital Alliance Holdings, Ltd. 394,918 1,103,922 Capitec Bank Holdings, Ltd. 125,536 252,806 Caxton & CTP Publishers & Printers, Ltd. 984,670 1,663,693 * Corpcapital, Ltd. 579,166 70,105 * Datatec, Ltd. 217,667 370,956 Delta Electrical Industries, Ltd. 100,483 563,575 * Dimension Data Holdings PLC 1,342,376 876,040 Distell Group, Ltd. 425,279 1,870,469 Dorbyl, Ltd. 67,373 297,487 * Ellerine Holdings, Ltd. 163,857 1,468,219 Gold Reef Casino Resorts, Ltd. 344,218 674,931 Grintek, Ltd. 210,786 62,576 Group Five, Ltd. 141,930 349,018 Highveld Steel & Vanadilum Corp., Ltd. 262,534 2,179,849 Hudaco Industries, Ltd. 64,681 350,884 Iliad Africa, Ltd. 76,658 127,480 Illovo Sugar, Ltd. 561,051 786,505 Imperial Holdings, Ltd. 354,239 6,236,610 Investec, Ltd. 97,399 2,773,853 Iscor, Ltd. 976,965 10,962,879 * JCI, Ltd. 4,289,448 244,075 Johnic Communications, Ltd. 200,397 1,000,550 Kersaf Investments, Ltd. 151,284 1,369,549 Liberty Group, Ltd. 711,717 7,828,579 M Cubed Holdings, Ltd. 1,367,759 96,442
* Medi-Clinic Corp., Ltd. 460,930 1,134,543 Metair Investment, Ltd. 12,071 370,231 * Metorex, Ltd. 328,332 152,730 Metropolitan Holdings, Ltd. 1,235,733 2,037,644 Murray & Roberts Holdings, Ltd. 557,578 1,403,510 Nampak, Ltd. 1,212,039 3,131,558 Nedcor, Ltd. 837,695 10,907,757 New Clicks Holdings, Ltd. 776,702 1,299,658 Northam Platinum, Ltd. 481,539 742,234 * Nu-World Holdings 43,045 239,042 Old Mutual PLC 6,560,799 16,233,597 Omnia Holdings, Ltd. 63,382 476,007 * Palabora Mining Co., Ltd. 64,240 415,305 Peregrine Holdings, Ltd. 427,469 197,909 PSG Group, Ltd. 222,582 208,433 Rainbow Chicken, Ltd. 569,688 687,317 * Randgold and Expl CO 127,533 263,323 Rebserve Holdings, Ltd. 407,192 619,776 Redefine Income Fund, Ltd. 83,325 44,965 * Relyant Retail, Ltd. 944,541 359,358 Sanlam, Ltd. 4,967,580 10,376,795 Santam, Ltd. 248,719 2,874,997 Sappi, Ltd. 451,122 6,023,655 Steinhoff International Holdings, Ltd. 2,201,185 4,519,959 Tiger Wheels, Ltd. 116,729 533,402 Tongaat-Hulett Group, Ltd. 306,181 2,641,695 Trans Hex Group, Ltd. 168,287 524,756 * Trencor, Ltd. 407,257 912,698 UCS Group, Ltd. 376,067 92,716 Unitrans Ltd 165,695 892,998 Value Group, Ltd. 311,313 92,206 * Western Areas Ltd 84,722 396,570 ------------------ TOTAL COMMON STOCKS (Cost $98,218,528) 146,100,419 ------------------ INVESTMENT IN CURRENCY -- (0.0%) * South African Rand 4,649 ------------------ (Cost $4,049) TOTAL -- SOUTH AFRICA (Cost $98,222,577) 146,105,068 ------------------ SOUTH KOREA -- (11.6%) COMMON STOCKS -- (11.6%) Aekyung Petrochemical Co., Ltd. 10,140 148,754 * Anam Semiconductor, Inc. 296,459 794,050 Asia Cement Manufacturing Co., Ltd. 9,438 298,265 * AUK Corp. 24,000 78,417 Baiksan Co., Ltd. 41,550 48,105 Boo Kook Securities Co., Ltd. 17,385 101,826
BYC Co., Ltd. 810 32,967 Byuck San Corp. 230 3,619 Byuck San Engineering and Construction Co., Ltd. 87,860 329,932 * Capro Corp. 16,830 58,839 Cheil Industrial, Inc. 80,314 1,195,325 Cho Kwang Leather Co., Ltd. 4,860 13,792 Choil Aluminium Mfg. Co., Ltd. 5,770 24,515 Chon Bang Co., Ltd. 2,520 81,354 * Chong Kun Dang 11,299 109,330 Choong Wae Pharmaceutical 9,816 195,880 * Choongnam Spinning Co., Ltd. 714 1,707 Chosun Refractories Co., Ltd. 7,370 147,440 * CKD Bio Corp. 3,109 15,395 * D.I Corp. 65,430 138,068 Dae Chang Industrial Co. 6,170 23,967 Dae Dong Industrial Co., Ltd. 3,930 20,448 * Dae Han Fire & Marine Insurance Co., Ltd. 12,610 57,177 Dae Sang Corp. 82,740 377,858 Dae Won Kang Up Co., Ltd. 13,100 188,138 * Dae Young Packaging Co., Ltd. 356,210 35,664 Daeduck Industries Co., Ltd. 28,400 266,057 Daegu Bank Co., Ltd. 193,922 1,346,452 Daehan Flour Mills Co., Ltd. 2,525 150,268 Daehan Synthetic Fiber Co., Ltd. 2,000 40,620 Daelim Industrial Co., Ltd. 66,570 3,057,278 * Daelim Trading Co., Ltd. 27,140 151,427 Daesung Industrial Co., Ltd. 7,690 166,334 Daewoo Engineering & Construction Co., Ltd. 819,780 4,334,725 * Daewoo International Corp. 64,190 506,718 Daewoo Motor Sales Corp. 61,560 449,673 * Daewoo Securities Co., Ltd. 436,970 1,431,108 Daewoong Co., Ltd. 12,340 86,638 Dahaam E-Tec Co., Ltd. 5,985 59,011 Daishin Securities Co., Ltd. 103,481 1,268,763 Daiyang Metal Co., Ltd. 40,000 54,762 * Daou Technology, Inc. 60,000 75,561 DC Chemical Co., Ltd. 38,990 655,991 Dong Ah Tire Industrial Co., Ltd. 42,420 187,491 Dong Bu Insurance Co., Ltd. 132,650 889,916 * Dong Hai Pulp Co., Ltd. 14,310 39,067 Dong IL Rubber Belt Co., Ltd. 7,253 15,199 Dong Wha Pharmaceutical Industries Co. 5,167 43,203 * Dong Won Co., Ltd. 5,520 66,792 Dong Yang Department Store Co., Ltd. 9,000 38,993 * Dong Yang Mec 20,680 85,043 Dong-A Pharmaceutical Co., Ltd. 19,920 497,055 Dongbu Corp. 46,410 387,722 Dongbu Hannong Chemical Co., Ltd. 14,890 190,632 Dongbu Securities Co., Ltd. 22,040 48,337 Dongbu Steel Co., Ltd. 46,108 623,466 Dong-Il Corp. 4,205 110,248 Dongkook Industries Co., Ltd. 1,620 5,310
Dongkuk Steel Mill Co., Ltd. 155,862 2,859,926 * Dongsu Industrial Co., Ltd. 9,880 105,161 Dongsung Chemical Industries 3,770 22,838 Dongwon F&B Co., Ltd. 6,666 272,663 Dongwon Financial Holding Co., Ltd. 116,926 989,396 * Dongwon Industries Co., Ltd. 1,876 20,772 Dongyang Express & Construction Corp. 5,250 78,995 * Doosan Corp. 41,820 516,538 Doosan Heavy Industries & Construction Co., Ltd. 327,020 4,211,002 * Doosan Industrial Development Co., Ltd. 81,030 291,972 DPI Co., Ltd. 33,340 100,916 Duck Yang Industry Co., Ltd. 4,000 35,062 * Enex Co., Ltd. 5,960 36,925 F&F Co., Ltd. 23,100 30,708 * First Fire & Marine Insurance Co., Ltd. 40,160 38,275 * Firstech Co., Ltd. 28,190 22,825 * Fursys, Inc. 24,120 291,310 Global & Yuasa Battery Co., Ltd. 11,600 18,277 * Good Morning Securities Co., Ltd. 283,690 947,671 Green Cross Corp. 10,540 252,580 * Gwangju Shinsegae Co., Ltd. 1,590 59,389 Halla Engineering & Construction Corp. 7,450 52,203 Han Kuk Carbon Co., Ltd. 25,070 43,425 Han Wha Corp. 146,740 1,771,681 Han Yang Securities Co., Ltd. 24,940 64,512 Hana Securities Co., Ltd. 40,790 261,494 Handok Pharmaceuticals Co., Ltd. 18,150 219,221 Hanil Cement Manufacturing Co., Ltd. 15,883 805,740 * Hanil E-wha Co., Ltd. 79,730 101,228 Hanil Iron & Steel Co., Ltd. 1,815 25,818 Hanjin Heavy Industry Co., Ltd. 145,790 1,061,493 Hanjin Transportation Co., Ltd. 23,460 339,265 * Hankook Core Co., Ltd. 7,001 568 Hankook Cosmetics Co., Ltd. 30,000 29,124 Hankook Tire Manufacturing Co., Ltd. 150,550 1,518,323 Hankuk Electric Glass Co., Ltd. 18,620 903,716 Hankuk Glass Industries, Inc. 22,200 1,931,268 Hankuk Paper Manufacturing Co., Ltd. 9,800 231,470 * Hanmi Capital Co., Ltd. 28,690 136,463 Hansae Co., Ltd. 3,260 35,080 * Hansol Chemical Co., Ltd. 12,467 56,695 * Hansol CSN Co., Ltd. 103,640 123,985 Hansol Paper Co., Ltd. 92,914 936,751 * Hansol Telecom Co., Ltd. 543 4,155 * Hanssem Co., Ltd. 12,390 72,819 Hanwha Chemical Corp. 218,380 2,125,796 Hanwha Securities Co., Ltd. 62,690 144,203 Heesung Cable, Ltd. 3,660 35,025 Histeel Co., Ltd 1,080 16,499 Hotel Shilla, Ltd. 76,920 491,783 HS R&A Co., Ltd. 4,980 26,711 Huchems Fine Chemical Corp. 45,340 171,615
* Huneed Technologoes Co., Ltd. 90,030 27,058 Husteel Co., Ltd. 10,370 91,979 Hwa Sung Industrial Co. 26,510 97,783 Hwashin Co., Ltd. 42,000 41,218 Hyosung T & C Co., Ltd. 61,987 666,605 Hyundai Cement Co., Ltd. 15,435 414,148 * Hyundai Corp. 6,015 21,154 Hyundai Department Store Co., Ltd. 37,908 1,206,537 Hyundai Department Store H & S Co., Ltd. 8,362 132,584 Hyundai Development Co. 160,560 2,622,690 * Hyundai Elevator Co., Ltd. 9,180 427,950 Hyundai Heavy Industries Co., Ltd. 154,760 4,421,286 Hyundai Hysco 170,820 1,400,706 Hyundai Marine & Fire Insurance Co., Ltd. 102,700 395,394 * Hyundai Merchant Marine Co., Ltd. 193,270 2,955,119 * Hyundai Mipo Dockyard Co., Ltd. 15,693 459,253 Hyundai Motor Co., Ltd. 212,320 10,419,976 * Hyundai Pharmaceutical Ind Co., Ltd. 4,200 51,455 * Hyundai Securities Co., Ltd. 249,730 1,000,437 Il Dong Pharmaceutical Co., Ltd. 5,840 88,565 * Il Jin Diamond Co., Ltd. 14,730 210,182 Il Sung Pharmaceutical Co., Ltd. 3,990 82,326 Il Yang Pharmaceutical Co., Ltd. 6,107 27,318 * IlJin Electric, Ltd. 26,530 55,803 IlShin Spinning Co., Ltd. 3,600 127,513 INI Steel Co., Ltd. 235,930 3,092,559 ISU Chemical Co., Ltd. 14,350 109,240 Je Il Pharmaceutical Co. 2,220 59,068 Jeonbuk Bank, Ltd. 52,970 222,738 * Jinro, Ltd. 407 17,468 Joongang Constuction Co., Ltd. 9,880 59,443 * KDB Capital Corp. 972 2,506 * Keang Nam Enterprises Co., Ltd. 7,902 51,001 KEC Corp. 10,630 200,993 Keyang Electric Machinery Co., Ltd. 71,760 89,504 * KG Chemical Corp. 111,230 51,397 Kia Motors Corp. 441,050 4,191,791 Kodenshi Korea Corp. 38,000 71,614 Kolon Chemical Co., Ltd. 20,220 132,604 Kolon Engineering & Construction Co., Ltd. 37,850 104,314 Kolon Industries, Inc. 32,379 178,911 * Kolon International 1,905 7,335 Kolon International Corp. 11,960 54,317 Korea Cast Iron Pipe Co., Ltd. 44,688 101,167 Korea Circuit Co. 31,660 108,091 * Korea Development Co., Ltd. 23,520 400,651 * Korea Development Leasing Corp. 61,900 80,458 * Korea Express Co., Ltd. 21,990 523,600 Korea Fine Chemical Co., Ltd. 7,000 67,665 Korea Flange Co., Ltd. 10,290 135,050 Korea Iron & Steel Co., Ltd. 25,230 542,394 Korea Iron & Steel Works Co., Ltd. 21,294 307,993
Korea Kolmar Co., Ltd. 35,185 55,377 Korea Komho Petrochemical 61,750 845,770 Korea Mutual Savings Bank 14,910 82,626 Korea Petrochemical Industry Co., Ltd. 12,300 228,331 Korea Polyol Co., Ltd. 10,556 325,009 Korea Reinsurance Co., Ltd. 111,460 445,306 Korea Zinc Co., Ltd. 42,730 1,222,697 * Korean Air Co., Ltd. 176,738 3,094,252 Korean Air Terminal Service Co., Ltd. 3,490 48,607 * KP Chemical Corp. 201,976 932,235 * KTB Network, Ltd. 135,720 254,956 Kukdo Chemical Co., Ltd. 8,710 92,086 Kukdong City Gas Co., Ltd. 12,780 189,035 * Kukje Corp. 34,550 48,077 Kumgang Korea Chemical Co., Ltd. 22,960 2,635,468 Kumho Industrial Co., Ltd. 89,380 1,011,208 * Kunsul Chemical Industrial Co. Ltd 12,700 74,953 Kwang Dong Pharmaceutical Co., Ltd. 114,660 222,259 Kyeryong Construction Industrial Co., Ltd. 17,500 242,450 Kyobo Securities Co., Ltd. 76,680 151,418 Kyong Dong Boiler Co., Ltd. 3,450 41,950 Kyungbang Co., Ltd. 1,856 89,552 LG Cable, Ltd. 68,050 1,331,722 LG Engineering & Construction Corp. 104,882 2,718,555 LG International Corp. 107,834 958,242 * LG Investment & Securities Co., Ltd. 200,240 1,448,180 Lotte Confectionary Co., Ltd. 1,170 713,422 Lotte Sam Kang Co., Ltd. 2,460 217,916 Meritz Securities Co., Ltd. 73,900 178,730 * Midopa Co., Ltd. 88,950 390,882 Motonic Corp. 640 8,478 Namhae Chemical Corp. 105,810 187,833 Namyang Dairy Products Co., Ltd. 1,320 419,238 Nong Shim Holdings Co., Ltd. 1,750 98,534 Oriental Fire & Marine Insurance Co., Ltd. 16,810 267,430 Ottogi Corporation 7,320 282,453 * Pacific Industries, Inc. 12,240 135,156 * Pantech Co., Ltd. 19,630 72,249 * PaperCorea, Inc. 19,552 52,950 * Partsnic Co., Ltd. 11,310 20,353 * Pohang Coated Steel Co., Ltd. 12,780 296,849 Poong Lim Industrial Co., Ltd. 32,280 77,933 Poong San Corp. 66,220 888,366 * Pum Yang Construction Co., Ltd. 14,380 117,102 Pusan Bank 200,400 1,548,313 Pusan City Gas Co., Ltd. 21,560 308,340 Pyung Hwa Industrial Co., Ltd. 45,370 172,546 * Regent Securities Co., Ltd. 108,437 118,815 * Rocket Electric Co., Ltd. 3,460 5,273 * Saehan Industries, Inc. 95,610 161,402 * Saehan Media Corp. 31,250 51,785 * Sam Jin Pharmaceutical Co., Ltd. 2,650 74,760
Sam Yung Trading Co., Ltd. 13,840 22,915 Sambu Construction Co., Ltd. 11,175 129,370 Samhwa Crown and Closure Co., Ltd. 3,100 31,983 Samhwa Paints Industrial Co., Ltd. 33,600 92,809 * Samlip Industrial Co., Ltd. 15,670 95,423 Samsung Climate Control Co., Ltd. 11,990 69,072 Samsung Corp. 331,070 4,806,994 * Samsung Engineering Co., Ltd. 84,110 583,657 Samsung Fine Chemicals 57,050 1,004,286 Samsung Heavy Industries Co., Ltd. 491,740 2,763,171 Samsung Securities Co., Ltd. 103,330 1,948,027 * Samsung Techwin Co., Ltd. 37,420 271,872 Samwhan Corp. Co., Ltd. 17,730 118,407 Samyang Corp. 22,135 759,461 Samyang Genex Co., Ltd. 5,490 207,702 Samyang Tongsang Co., Ltd. 2,820 34,662 * Samyoung Chemical Co., Ltd. 2,820 21,477 * Samyoung Corp. 6,130 56,507 Samyoung Electronics Co., Ltd. 39,200 266,786 Seah Holdings Corp. 4,619 105,345 Seah Steel Corp. 6,245 111,207 * Segye Corp. 20,530 32,073 Sejong Industrial Co., Ltd. 44,050 140,968 Sejong Securities Co., Ltd. 54,071 86,943 Sempio Foods Co. 3,610 28,858 * Seoul Securities Co., Ltd. 109,220 329,377 * Shin Dong-Ah Fire & Marine Insurance Co. 22,873 69,253 Shin Heung Securities Co., Ltd. 9,130 19,308 Shin Young Securities Co., Ltd. 18,390 245,385 Shin Young Wacoal, Inc. 273 10,224 * Shin-Ho Paper Manufacturing Co., Ltd. 38,850 132,063 Shinmoorim Paper Manufacturing Co., Ltd. 34,120 237,346 Shinpoong Pharmaceutical Co., Ltd. 4,540 45,467 * Shinsegae Engineering & Construction Co., Ltd. 3,980 57,708 * Shinsung Tongsang Co., Ltd. 21,550 26,563 Sindo Ricoh 15,060 893,136 * SK Chemicals Co., Ltd. 37,810 417,008 SK Gas Co., Ltd. 18,370 419,963 * SKC Co., Ltd. 57,310 465,750 Song Woun Industries 24,310 45,444 * Ssang Bang Wool Co., Ltd. 52,870 122,031 * Ssangyong Cement Industry Co., Ltd. 587,792 685,639 * Ssangyong Fire & Marine Insurance Co. 13,190 38,345 * Ssangyong Motor Co. 158,040 968,533 STX Corp. 24,376 163,781 * STX Engine 8,711 40,128 Sung Chang Enterprise Co., Ltd. 9,000 119,557 Sung Shin Cement Co., Ltd. 40,070 762,421 * Sungwon Corp. 20,600 27,278 * Sunjin Co., Ltd. 4,240 99,898 * Sunkyong Securities Co., Ltd. 384,280 173,295 Tae Kwang Industrial Co., Ltd. 2,380 818,749
Tae Kyung Industrial Co., Ltd. 63,000 137,064 Tae Young Corp. 16,270 558,367 Taegu Department Store Co., Ltd. 19,941 140,603 Tai Han Electric Wire Co., Ltd. 84,107 678,538 Tai Lim Packaging Industries Co., Ltd. 4,380 13,256 The Will-Bes & Co., Ltd. 10,640 21,043 * Tong Kook Corp. 607 905 * Tong Yang Investment Bank 166,420 316,965 * Tong Yang Major Corp. 24,960 64,492 Tong Yang Moolsan Co., Ltd. 4,560 11,400 * Tongil Heavy Industries Co., Ltd. 160,770 110,072 TS Corp. 3,881 58,991 Union Steel Manufacturing Co., Ltd. 21,297 756,625 Wiscom Co., Ltd. 22,000 67,145 Woongjin.Com Co., Ltd. 78,940 276,115 Yoo Sung Enterprise Co., Ltd. 3,780 63,056 Youlchon Chemical Co., Ltd. 47,300 368,764 * Young Poong Mining & Construction Corp. 18,030 946 * Youngbo Chemical Co., Ltd. 33,000 61,501 Youngone Corp. 108,650 371,927 Youngpoong Corp. 1,580 99,636 Yuhan Corp. 5,179 471,537 Yuhwa Securities Co., Ltd. 17,000 124,694 * Zinus, Inc. 9,330 27,363 ------------------ TOTAL COMMON STOCKS (Cost $85,258,948) 136,882,992 ------------------ RIGHTS/WARRANTS -- (0.0%) * Hansol Telecom Co., Ltd. Rights 12/15/04 1,646 0 ------------------ (Cost $0) TOTAL -- SOUTH KOREA (Cost $85,258,948) 136,882,992 ------------------ TAIWAN -- (10.7%) COMMON STOCKS -- (10.6%) Ability Enterprise Co., Ltd. 168,000 83,463 Abit Computer Co., Ltd. 835,498 252,947 * Abocom Systems, Inc. 105,000 22,300 * Accton Technology Corp. 706,000 284,631 Acer, Inc. 1,544,235 2,351,782 * AGV Products 327,000 70,284 * Allis Electric Co., Ltd. 86,320 18,706 * Ambassador Hotel 435,000 242,591 Amtran Technology Co., Ltd. 411,324 165,774 * Apex Science & Engineering Corp. 103,000 15,322 * Arima Computer Corp. 1,620,000 472,790 Asia Cement Corp. 4,164,115 2,729,088 Asia Chemical Corp. 357,000 94,572 Asia Polymer Corp. 272,160 144,920
* Askey Computer Co., Ltd. 192,917 99,442 * Aurora Corp. 210,650 115,947 Aurora Systems Corp. 157,000 62,768 Avision, Inc. 56,000 31,583 Bank of Kaohsiung Co., Ltd. 838,622 588,601 * Behavior Tech Computer Corp. 544,000 139,187 * Bes Engineering Corp. 1,609,089 280,951 * Carnival Industrial Corp. 336,000 55,544 Cathay Chemical Works, Inc. 131,000 42,519 Cathay Real Estate Development Co., Ltd. 1,914,421 1,034,776 * Central Insurance Co., Ltd. 317,000 112,364 Central Reinsurance Co., Ltd. 354,550 142,540 * Chang Hwa Commercial Bank 8,379,459 5,204,329 * Chang-Ho Fibre Corp. 50,000 20,393 * Charoen Pokphand Enterprises Co., Ltd. 96,000 19,593 Cheng Loong Corp. 1,608,480 587,021 * Chia Her Industrial Co., Ltd. 699,000 71,344 * Chia Hsin Cement Corp. 1,071,000 480,625 * Chia Hsin Food & Synthetic Fiber Co., Ltd. 812,250 103,694 Chia-I Industrial Co., Ltd. 334,000 124,019 * Chien Tai Cement Co., Ltd. 470,397 8,598 China Airlines 5,608,939 3,208,657 China Chemical & Pharmaceutical Co. 300,240 124,375 * China Development Financial Holdong Co., Inc. 1,130,000 548,046 China Electric Manufacturing Co., Ltd. 306,000 87,029 * China General Plastics Corp. 314,000 137,792 * China Glaze Co., Ltd. 54,000 12,201 * China Life Insurance Co., Ltd. 698,763 423,895 * China Man-Made Fiber Co., Ltd. 952,020 491,068 China Motor Co., Ltd. 1,022,000 1,127,806 * China Petrochemical Development Corp. 2,349,000 486,272 * China Rebar Co., Ltd. 1,009,328 120,400 China Steel Structure Co., Ltd. 173,873 88,119 * China Synthetic Rubber Corp. 385,948 134,294 * China United Trust & Investment Corp. 851,145 87,328 * China Wire & Cable Co., Ltd. 379,000 67,301 Chinatrust Financial Holdings Co., Ltd. 241,686 275,523 Chin-Poon Industrial Co., Ltd. 397,716 231,021 * Chun Yu Works & Co., Ltd. 230,000 87,680 Chun Yuan Steel Industrial Co., Ltd. 574,050 372,362 Chung Hsin Electric & Machinery Co., Ltd. 512,000 209,959 Chung Hwa Pulp Corp. 702,419 336,127 * Chung Shing Textile Co., Ltd. 228,600 4,364 * Chungwa Picture Tubes Co., Ltd. 1,890,000 788,191 Clevo Co. 518,848 163,429 CMC Magnetics Corp. 5,392,000 2,522,761 Collins Co., Ltd. 328,758 106,346 * Compeq Manufacturing Co., Ltd. 1,296,000 459,607 * Compex International Co. Ltd. 46,400 4,591 Continental Engineering Corp. 1,419,965 625,525 * Cosmos Bank Taiwan 2,469,000 1,144,718 CTCI Corp. 626,154 351,712
Cyntec Co., Ltd. 33,600 17,668 * Da-Cin Construction Co., Ltd. 229,000 97,112 * Delpha Construction Co., Ltd. 228,044 33,910 Der Pao Construction Co., Ltd. 483,000 105,331 DFI, Inc. 64,000 30,310 * Elite Material Co., Ltd. 93,000 30,090 Elitegroup Computer Systems Co., Ltd. 832,250 398,033 * Enlight Corp. 250,000 60,124 * Entie Commercial Bank 3,198,474 1,087,976 * ET Internet Technology Corp. 354,676 188,384 Eten Information Systems, Ltd. 134,000 61,217 Eternal Chemical Co., Ltd. 966,000 591,740 * Eva Airways Corp. 5,875,071 2,578,957 * Ever Fortune Industrial Co., Ltd. 409,000 4,188 * Everest Textile Co., Ltd. 432,177 129,528 Evergreen International Storage & Transport Corp. 1,926,000 887,461 Evergreen Marine Corp., Ltd. 2,170,457 2,039,722 Everlight Chemical Industrial Corp. 306,950 111,098 * Everspring Industry Co., Ltd. 206,000 43,933 Far East Department Stores, Ltd. 1,706,000 953,859 Far East Textile, Ltd. 7,095,613 5,497,160 Far Eastern International Bank 825,000 492,119 Federal Corp. 264,000 155,289 * FIC Global, Inc. 640,080 91,369 First Copper Technology Co., Ltd. 322,750 139,508 * First Financial Holding Co., Ltd. 3,071,000 2,528,207 First Hotel 130,380 67,905 Formosa Taffeta Co., Ltd. 3,094,706 1,425,688 * Formosan Rubber Group, Inc. 345,000 140,118 Formosan Union Chemical Corp. 195,247 71,848 Fortune Electric Co., Ltd. 191,000 48,826 * Fu I Industrial Co., Ltd. 264,000 58,812 Fuh-Hwa Financial Holding Co., Ltd. 5,354,953 2,632,812 Fwuson Industry Co., Ltd. 302,000 52,735 * G.T.M. Corp. 133,000 45,302 * Giga Storage Corp. 209,898 68,209 Giga-Byte Technology Co., Ltd. 876,750 1,046,865 * Gold Circuit Electronics, Ltd. 483,140 204,429 * Goldsun Development & Construction Co., Ltd. 1,416,000 371,078 * Grand Pacific Petrochemical Corp. 347,000 142,802 Great China Metal Industry Co., Ltd. 287,000 181,164 Great Wall Enterprise Co., Ltd. 376,980 92,725 * Helix Co., Ltd 158,211 32,178 Hey Song Corp. 594,000 185,740 Ho Tung Holding Corp. 781,628 243,151 * Hocheng Corp. 364,000 94,402 Hong Ho Precision Textile Co., Ltd. 93,889 14,672 Hong Tai Electric Industrial Co., Ltd. 282,000 81,104 * Hsinchu International Bank 1,615,834 1,023,556 Hsing Ta Cement Co., Ltd. 376,980 115,904 Hua Eng Wire & Cable Co., Ltd. 702,035 173,690 Hua Nan Financial Holding Co., Ltd. 80,774 66,462
* Hualon Corp. 257,040 8,615 * Hung Ching Development & Construction Co., Ltd. 528,000 66,201 Hung Poo Construction Corp. 348,000 218,104 * Hung Sheng Construction Co., Ltd. 735,000 315,407 International Bank of Taipei 2,686,734 1,868,206 Inventec Corp. 2,928,550 1,350,876 * Jean Co., Ltd. 154,000 34,661 Jui Li Enterprise Co., Ltd. 195,000 64,258 Jung Shing Wire Co., Ltd. 123,000 44,566 Kang Na Hsiung Co., Ltd. 74,271 33,411 * Kao Hsing Chang Iron & Steel Corp. 360,000 164,212 * Kee Tai Properties Co., Ltd. 272,000 58,765 King Yuan Electronics Co., Ltd. 496,172 320,997 * Kingdom Construction Co., Ltd. 464,000 143,173 Kinpo Electronics, Inc. 2,139,240 911,864 Knowledge-Yield-Excellence Systems Corp. 116,000 74,103 * Kuoyang Construction Co., Ltd. 136,029 56,816 * Kwong Fong Industries Corp. 230,000 28,136 Lan Fa Textile Co., Ltd. 301,395 94,150 * Lead Data Co., Ltd. 444,140 80,703 * Leadtek Research, Inc. 112,000 57,716 * Lealea Enterprise Co., Ltd. 658,000 127,035 Lee Chang Yung Chemical Industry Corp. 505,501 226,960 * Lee Chi Enterprises Co., Ltd. 196,000 69,350 * Lelon Co., Ltd. 132,118 44,475 * Leofoo Development Co., Ltd. 238,000 85,935 * Les Enphants Co., Ltd. 126,000 48,534 * Li Peng Enterprise Co., Ltd. 513,000 149,809 Li Shin International Enterprise Corp. 39,900 16,253 Lien Hwa Industrial Corp. 734,000 266,460 Ling Sheng PrecisionIndustrial Corp. 211,320 85,353 Long Bon Development Co., Ltd. 568,000 180,402 Long Chen Paper Co., Ltd. 507,000 161,421 Lucky Cement Corp. 449,000 122,842 * Luxon Electronics Corp. 313,400 49,784 * Macronix International Co., Ltd. 6,883,000 1,494,502 * Megamedia Corp. 65,782 1,221 Mercuries & Associates, Ltd. 559,980 184,769 Mercuries Data Co., Ltd. 142,657 46,274 Merida Industry Co., Ltd. 171,000 101,495 * Microelectronics Technology, Inc. 352,000 138,235 Micro-Star International Co., Ltd. 1,059,400 636,066 * Microtek International, Inc. 115,062 17,454 Mitac International Corp. 1,765,120 816,597 Mitac Technology Corp. 52,000 22,152 Mustek Systems, Inc. 82,500 20,586 * Namchow Chemical Industrial Co., Ltd. 164,057 30,642 * Nankang Rubber Tire Co., Ltd. 104,312 124,232 Nantex Industry Co., Ltd. 186,430 58,869 * New Asia Construction & Development Co., Ltd. 146,000 25,042 Nien Hsing Textile Co., Ltd. 118,000 113,535 Ocean Plastics Co., Ltd. 128,000 59,741
* Opto Tech Corp. 483,000 88,591 * Orient Semiconductor Electronics, Ltd. 648,713 61,891 * Pacific Construction Co., Ltd. 324,256 22,354 * Pacific Electric Wire & Cable Corp. 1,873,020 30,224 Pan Overseas Electronics Co., Ltd. 187,864 46,481 * Pan-International Industrial Corp. 192,450 135,239 Phihong Technology Co., Ltd. 79,110 29,287 Phoenix Precision Technology Corp. 132,000 69,552 * Picvue Electronics, Ltd. 604,000 106,901 Premier Image Technology Corp. 206,000 158,497 Primax Electronics, Ltd. 484,744 97,827 * Prince Housing & Development Corp. 1,102,000 270,683 * Procomp Informatics, Ltd. 391,440 77,741 Prodisc Technology, Inc. 861,157 316,414 Radium Life Tech 85,534 69,273 Ralec Electronic Corp. 172,450 69,455 Realtek Semiconductor Corp. 774,000 811,420 * Rectron, Ltd. 78,300 11,170 Rexon Industrial Corp., Ltd. 218,820 79,357 Ritek Corp. 3,291,518 1,177,701 * Ruentex Development Co., Ltd. 626,000 123,642 Sampo Corp. 1,757,850 382,955 * San Fang Chemical Industry Co., Ltd. 82,280 61,430 Sanyang Industrial Co., Ltd. 1,215,000 468,890 Sanyo Electric Co., Ltd. 351,000 189,021 * SDI Corp. 191,483 85,833 Sheng Yu Steel Co., Ltd. 5,000 6,116 Shihlin Electric & Engineering Corp. 842,000 547,119 * Shihlin Paper Corp. 224,000 157,052 Shinkong Co., Ltd. 186,190 97,547 * Shinkong Synthetic Fibers Co., Ltd. 2,041,000 561,424 Shinung Corp. 290,700 66,533 * Silicon Integrated Systems Corp. 2,199,423 778,533 Siliconware Precision Industries Co., Ltd. 1,128,000 869,468 * Sin Yih Ceramic Co., Ltd. 211,000 44,377 Sincere Navigation Corp. 382,052 481,423 * Sinkong Spinning Co., Ltd. 75,000 29,350 SinoPac Holdings Co., Ltd. 4,067,997 2,253,934 * Sintek Photronics Corp. 783,000 329,925 * Siward Crystal Technology Co., Ltd. 40,789 18,400 * Solomon Technology Corp. 338,000 66,636 South East Soda Manufacturing Co., Ltd. 233,000 54,403 * Southeast Cement Co., Ltd. 497,700 123,134 * Space Shuttle Hi-Tech Co., Ltd. 177,000 22,137 Standard Foods Taiwan, Ltd. 288,000 103,864 Stark Technology, Inc. 58,000 25,264 Sunonwealth Electric Machine Industry Co., Ltd. 21,000 8,820 Systex Corp., Ltd. 1,378,341 458,784 Ta Chen Stainless Pipe Co., Ltd. 81,000 59,067 * Ta Chong Bank 1,394,000 514,923 Ta Ya Elec Wire & Cable Co., Ltd. 509,860 177,469 Tah Hsin Industrial Corp. 268,000 76,311
Ta-I Technology Co., Ltd. 151,200 81,166 * Taichung Commercial Bank 2,479,000 934,131 * Tainan Business Bank 749,000 351,986 Tainan Spinning Co., Ltd. 2,697,000 779,237 * Taita Chemical Co., Ltd. 223,000 80,095 * Taitung Business Bank 163,395 34,128 * Taiwan Business Bank 6,606,120 2,418,612 Taiwan Cement Corp. 5,395,763 3,238,375 Taiwan Fire & Marine Insurance Co., Ltd. 302,077 166,918 * Taiwan Flourescent Lamp Co., Ltd. 124,000 51,601 Taiwan Glass Ind. Corp. 1,403,896 1,282,417 * Taiwan Kolin Co., Ltd. 498,000 104,563 Taiwan Mask Corp. 303,000 143,940 Taiwan Navigation Co., Ltd. 116,354 102,771 * Taiwan Pulp & Paper Corp. 238,000 78,021 * Taiwan Sakura Corp. 252,900 68,868 Taiwan Sogo Shinkong Security Co., Ltd. 181,860 91,775 * Taiwan Tea Corp. 992,215 156,223 * Tatung Co., Ltd. 7,449,000 2,762,124 * Tay-Shan Enterprises Co., Ltd. 372,320 77,131 Teapo Electronic Corp. 80,580 20,256 Teco Electric & Machinery Co., Ltd. 3,473,834 1,056,848 Tecom, Ltd. 307,753 147,056 Test-Rite International Co., Ltd. 97,005 57,934 * The Chinese Bank 2,439,000 497,865 * The Farmers Bank of China 2,821,160 949,543 The First Insurance Co., Ltd. 203,840 125,424 Ton Yi Industrial Corp. 2,957,810 826,791 Tsann Kuen Enterprise Co., Ltd. 121,870 126,485 TSRC Corp. 714,000 283,397 Tung Ho Steel Enterprise Corp. 722,323 549,193 * Twinhead International Corp. 211,017 54,350 * Tycoons Group Enterprise Co., Ltd. 263,000 81,674 Ulead Systems, Inc. 66,000 34,456 * Union Bank of Taiwan 2,636,000 883,339 * Union Insurance Co., Ltd. 613,454 175,245 Uni-President Enterprises Corp. 6,359,130 3,124,720 * Unitech Printed Circuit Board Corp. 433,000 174,952 United Epitaxy Co., Ltd. 81,978 28,041 * United Microelectronics Corp. 1,648,000 1,014,574 * Universal Cement Corp. 353,360 130,354 * Universal Microelectronics Co., Ltd. 69,010 23,136 Universal Scientific Industrial Co., Ltd. 944,800 335,072 UPC Technology Corp. 1,032,840 404,459 Usi Corp. 1,056,000 387,234 * Ve Wong Corp. 177,000 57,615 * Via Technologies, Inc. 1,871,000 1,008,236 * Visual Photonics Epitacy Co., Ltd. 86,000 18,070 * Walsin Lihwa Corp. 5,724,000 3,003,523 Walsin Technology Corp., Ltd. 450,191 244,203 Wan Hwa Enterprise Co., Ltd. 260,590 88,294 Waterland Financial Holdings 3,969,000 1,545,720
* Wei Chih Steel Industrial Co., Ltd. 211,898 55,599 * Wei Chuan Food Corp. 167,000 55,673 * Winbond Electronics Corp. 7,834,000 2,991,349 Wintek Corp. 128,432 117,476 Wistron Corp. 1,270,101 544,328 World Peace Industrial Co., Ltd. 314,700 191,275 WUS Printed Circuit Co., Ltd. 489,406 210,351 * Yageo Corp. 3,486,840 1,182,669 Yang Ming Marine Transport Corp. 1,078,058 966,345 * Yi Jinn Industrial Co., Ltd. 387,000 73,642 Yieh Phui Enterprise Co., Ltd. 1,054,000 742,020 Yosun Industrial Corp. 119,116 79,204 Yuen Foong Yu Paper Manufacturing Co., Ltd. 2,399,926 1,171,602 Yulon Motor Co., Ltd. 2,280,263 2,497,979 Yung Chi Paint & Varnish Manufacturing Co., Ltd. 1,000 1,270 Yung Shin Pharmaceutical Industrial Co., Ltd. 268,000 226,749 Yung Tay Engineering Co., Ltd. 456,000 244,081 Zig Sheng Industrial Co., Ltd. 354,764 122,912 ------------------ TOTAL COMMON STOCKS (Cost $108,048,876) 124,571,449 ------------------ INVESTMENT IN CURRENCY -- (0.1%) * Taiwan Dollar 973,977 ------------------ (Cost $950,056) TOTAL -- TAIWAN (Cost $108,998,932) 125,545,426 ------------------ MEXICO -- (10.1%) COMMON STOCKS -- (10.1%) Alfa S.A. de C.V. Series A 3,740,264 18,523,498 Cementos de Mexico S.A. de C.V. Series B 785,300 5,064,308 * Cintra S.A. de C.V. 85,000 47,699 * Consorcio Hogar S.A. de C.V. Series B 189,500 61,778 Controladora Comercial Mexicana S.A. de C.V. Series B 5,484,600 6,145,703 * Corporacion Geo S.A. de C.V. Series B 1,728,500 3,233,215 * Corporacion Interamericana de Entramiento S.A. de C.V. Series B 1,414,805 3,831,035 * Corporacion Mexicana de Restaurantes S.A. de C.V. Series B 3,689 493 Corporativo Fragua S.A. de C.V. Series B 70 249 * Desc S.A. de C.V. Series B 8,736,833 2,365,776 El Puerto de Liverpool S.A. Series 1 20,000 32,957 El Puerto de Liverpool S.A. Series C1 328,600 520,995 * Empaques Ponderosa S.A. de C.V. Series B 90,000 6,413 * Empresas ICA Sociedad Controladora S.A. de C.V. 16,050,200 5,732,852 Empresas la Moderna S.A. de C.V. Series A 3,457,285 363,382 Fomento Economico Mexicano Series B & D 488,000 2,325,952 * GPo Iusacell 143,500 274,812 Gruma S.A. de C.V. Series B 1,452,050 3,036,866 Grupo Carso S.A. de C.V. Series A-1 721,000 3,525,767
Grupo Cementos de Chihuahua, S.A. de C.V. 1,504,200 3,061,524 Grupo Continental S.A. 94,000 154,061 Grupo Corvi S.A. de C.V. Series L 284,000 59,953 Grupo Financiero del Norte S.A. Series C 650,000 3,647,538 Grupo Financiero GBM Atlantico S.A. de C.V. Series L 74 20 Grupo Financiero GBM Atlantico S.A. de C.V. Series L 75,724 20,235 Grupo Financiero Inbursa S.A. de C.V. Series O 2,728,165 5,100,691 * Grupo Gigante S.A. de C.V. Series B 324,076 225,158 Grupo Industrial Maseca S.A. de C.V. Series B 2,310,200 1,111,192 Grupo Industrial Saltillo Unique Series 853,600 1,388,357 * Grupo Nutrisa S.A. de C.V. 428 152 Grupo Posadas S.A. de C.V. Series L 356,000 221,970 * Grupo Qumma S.A. de C.V. Series B 5,301 85 * Grupo Tribasa S.A. de C.V. 152,065 0 * Herdez Common Series 319,000 152,016 * Hylsamex S.A. de C.V. Series B 1,026,960 3,000,360 Industrias Bachoco S.A. de C.V. (Certificate Representing Series B and Series L) 246,000 525,887 Industrias Penoles S.A. de C.V. 1,277,400 6,656,236 * Industrias S.A. de C.V. Series B 93,000 650,277 * Jugos del Valle S.A. de C.V. Series B 170,900 228,491 * Nueva Grupo Mexico S.A. de C.V. Series B 5,325,961 25,736,156 Organizacion Soriana S.A. de C.V. Series B 2,735,500 9,405,242 * Sanluis Corporacion S.A. de C.V.(Certificates representing 1 share Series B, 1 share Series C & 1 share Series D) 2,400 2,052 * US Commercial Corp. S.A. de C.V. 271,000 114,418 Vitro S.A. 2,052,500 1,901,352 ------------------ TOTAL COMMON STOCKS (Cost $69,257,596) 118,457,173 ------------------ INVESTMENT IN CURRENCY -- (0.0%) * Mexican Peso 5,970 ------------------ (Cost $6,374) TOTAL -- MEXICO (Cost $69,263,970) 118,463,143 ------------------ BRAZIL -- (9.1%) PREFERRED STOCKS -- (7.9%) * Acesita SA 413,076 5,414,029 Alpargatas-Santista Textil SA 430,000 59,441 Banco Bradesco SA 83,828 5,485,803 * Bradespar SA 2,851 84,691 Brasil Telecom Participacoes SA 1,406,899 10,448 * Braskem SA 142,800,000 6,216,000 Centrais Electricas de Santa Catarin Celesc Series B 1,323,000 515,581 Companhia Brasileira de Petroleo Ipiranga SA 202,800 1,468,809 * Companhia Siderurgica Paulista 720,000 307,059 Confab Industrial SA 1,800,000 1,800,000
Coteminas Cia Tecidos Norte de Minas 15,097,500 1,453,689 Distribuidora de Produtos de Petroleo Ipiranga SA 8,000 100,000 Duratex SA 66,910,000 2,951,912 Embraco SA 342,000 164,713 Embratel Participacoes SA 1,389,166 3,248 Forjas Taurus SA 254,000 123,265 Gerdau SA 775,552 13,959,936 Globex Utilidades SA 34,076 142,255 * Inepar SA Industria e Construcoes 78,960,001 26,126 Investimentos Itau SA 2,207,166 3,448,697 Magnesita SA Series A 36,500,000 195,248 Marcopolo SA 326,400 760,800 Metalurgica Gerdau SA 396,800 9,337,929 Perdigao SA NPV 199,200 3,517,491 * Plascar Participacoes Industriais SA 6,900,000 14,079 Polialden Petroquimica SA 780,000 315,441 Ripasa SA Papel e Celulose 1,298,000 1,932,684 Sadia SA 3,838,282 7,761,232 Sao Pau Alpargatas SA 470,000 49,678 Siderurgica Belgo-Mineira 12,307,631 6,312,186 Siderurgica de Tubarao Sid Tubarao 160,870,000 8,398,360 Suzano Bahia Sul Papel e Celullose SA 459,431 2,069,129 Suzano Petroquimica SA 94,000 243,294 Tele Celular Sul Participacoes SA 2,775,366 4,275 * Tele Leste Celular Participacoes SA 1,784,040 420 Tele Norte Celular Participacoes SA 1,390,958 261 Tele Norte Leste Participacoes SA 7,538 115,703 Telemar Norte Leste SA 95,000 2,219,926 Telemig Celular Participacoes SA 1,422,616 2,055 * Telesp Celular Participacoes 1,389,246 3,652 Uniao des Industrias Petroquimicas SA Series B 2,153,712 2,842,583 Unibanco-Uniao de Bancos Brasileiros SA 135,500 749,733 Usinas Siderurgicas de Minas Gerais SA 41,925 846,978 Vale do Rio Doce Series B 239,144 0 Votorantim Celulose e Papel SA 26,200,000 1,974,729 ------------------ TOTAL PREFERRED STOCKS (Cost $22,269,100) 93,403,568 ------------------ COMMON STOCKS -- (1.2%) Avipal SA Avicultura e Agropecua 12,500,000 36,673 Brasil Telecom Participacoes SA 51,256,779 488,070 Companhia Siderurgica Nacional 606,400 11,548,353 * Embratel Participacoes 50,000,000 284,375 Eternit SA 8,800 115,824 Tele Celular Sul Participacoes SA 98,247,830 136,536 Tele Centro Oeste Celular Participacoes SA 50,294,346 230,208 * Tele Leste Celular Participacoes 64,212,621 12,984 * Tele Norte Celular Participacoes 50,064,513 12,148 Tele Norte Leste Participacoes SA 51,468 804,188 Telemig Celular Participacoes SA 51,793,284 161,854 ------------------ TOTAL COMMON STOCKS (Cost $2,920,794) 13,831,213 ------------------
RIGHTS/WARRANTS -- (0.0%) * Telesp Celular Participacoes SA Preferred Rights 12/17/04 487,012 378 ------------------ (Cost $0) TOTAL -- BRAZIL (Cost $25,189,894) 107,235,159 ------------------ MALAYSIA -- (7.7%) COMMON STOCKS -- (7.7%) * A&M Realty Berhad 427,100 155,125 ACP Industries Berhad 512,000 164,340 * Advance Synergy Berhad 641,000 67,340 Advanced Synergy Capital Berhad 153,500 23,591 Affin Holdings Berhad 3,199,500 1,505,440 Aluminum Co. of Malaysia 250,000 110,376 * AMBD Berhad 1,990,900 96,843 AMFB Holdings Berhad 277,500 467,266 AMMB Holdings Berhad 938,944 844,474 Ancom Berhad 375,000 80,881 Ann Joo Resources Berhad 692,900 346,327 * Antah Holding Berhad 306,000 20,471 APM Automotive Holdings Berhad 94,500 60,660 Apollo Food Holdings Berhad 198,400 117,962 * Arab Malaysia Corp. Berhad 2,000,000 709,897 Asas Dunia Berhad 524,700 130,836 * Asia Pacific Land Berhad 1,349,000 99,192 Asiatic Development Berhad 2,166,500 1,002,743 * Avenue Assets Berhad 2,401,600 347,209 Ayer Hitam Planting Syndicate Berhad 27,000 16,948 Bandar Raya Developments Berhad 1,327,800 691,530 Batu Kawan Berhad 791,000 1,249,399 * Berjaya Capital Berhad 1,765,900 417,928 * Berjaya Group Berhad 3,516,900 110,807 Berjaya Land Berhad 2,688,000 579,410 Bernas Padiberas Nasional Berhad 1,391,800 625,255 Bimb Holdings Berhad 1,029,800 493,102 Bina Darulaman Berhad 118,000 39,022 Binaik Equity Berhad 149,800 39,327 Bolton Properties Berhad 747,000 179,446 Boustead Holdings Berhad 1,782,900 820,681 Cahya Mata Sarawak Berhad 1,008,800 438,185 * Camerlin Group Berhad 845,200 222,303 Chemical Co. of Malaysia Berhad 311,000 184,122 Chin Teck Plantations Berhad 96,800 127,458 Choo Bee Metal Industries Berhad 235,700 166,172 Commerce Asset Holding Berhad 1,104,000 1,411,330 * Cosway Corp. Berhad 854,100 177,640 * Country Heights Holdings Berhad 174,000 58,563 Courts Mammoth Berhad 495,200 214,720
Cycle & Carriage Bintang Berhad 249,800 206,233 * Damansara Realty Berhad 391,000 14,340 Datuk Keramik Holdings Berhad 127,000 3,352 Dijaya Corp. Berhad 612,100 156,755 Diversified Resources Berhad 3,343,600 1,987,814 DNP Holdings Berhad 166,000 29,294 * E&O Property Development Berhad 1,766,800 322,553 Eastern & Oriental Berhad 325,000 62,357 Eastern Pacific Industrial Corp. Berhad 414,400 189,490 Edaran Otomobil Nasional Berhad 809,800 708,645 Esso Malaysia Berhad 471,200 309,893 Europlus Berhad 278,100 45,675 * Faber Group Berhad 170,300 26,889 Far East Holdings Berhad 159,200 157,532 Focal Aims Holdings Berhad 424,000 45,294 Fraser & Neave Holdings Berhad 110,800 142,734 General Corp. Berhad 564,000 77,895 Glomac Berhad 234,200 134,169 Gold IS Berhad 734,100 283,832 Golden Hope Plantations Berhad 3,578,300 3,840,162 * Golden Plus Holdings Berhad 201,000 144,662 * Gopeng Berhad 273,900 44,357 Grand United Holdings Berhad 451,100 68,202 * Gula Perak Berhad 417,000 180,952 Guthrie Ropel Berhad 191,700 189,629 Hap Seng Consolidated Berhad 662,100 433,205 Highlands and Lowlands Berhad 2,218,800 2,089,065 * Ho Hup Construction Co. Berhad 175,100 49,734 * Ho Wah Genting Berhad 369,000 40,228 Hong Leong Credit Berhad 1,191,937 1,453,203 Hong Leong Industries Berhad 261,000 329,419 Hong Leong Properties Berhad 2,295,741 367,975 Hume Industries (Malaysia) Berhad 270,667 355,725 Hwang-DBS (Malaysia) Berhad 654,000 285,237 IGB Corp. Berhad 3,872,600 1,322,918 IJM Corp. Berhad 785,800 967,535 IJM Plantations Berhad 204,400 65,058 * Insas Berhad 1,680,000 174,397 * Integrated Logistics Berhad 324,000 167,134 IOI Properties Berhad 13,600 27,714 Island & Peninsular Berhad 522,500 651,247 Jaya Tiasa Holdings Berhad 439,000 461,882 Jerneh Asia Berhad 265,700 153,800 * Johan Holdings Berhad 228,000 16,207 Johor Port Berhad 1,078,200 606,042 Johore Tenggara Oil Palm Berhad 464,000 131,727 K & N Kenanga Holdings Berhad 1,454,300 313,615 Keck Seng (Malaysia) Berhad 657,500 321,694 * Kedah Cement Holdings Berhad 1,058,307 1,571,756 * Kejora Harta Berhad 601,000 55,943 Kian Joo Can Factory Berhad 598,200 448,212 * KIG Glass Industrial Berhad 260,000 15,730
Kim Hin Industry Berhad 325,900 188,400 Kim Loong Resources Berhad 113,000 40,418 KPJ Healthcare Berhad 478,600 188,826 Kuala Lumpur Kepong Berhad 1,394,500 2,527,436 * Kub Malaysia Berhad 1,251,400 197,459 Kulim Malaysia Berhad 777,425 582,944 * Kumpulan Emas Berhad 1,268,000 100,028 Kwantas Corp. Berhad 123,000 166,648 * Land & General Berhad 2,261,700 178,397 Landmarks Berhad 1,637,000 382,290 * Leader Universal Holdings Berhad 1,621,833 185,646 * Leong Hup Holdings Berhad 286,000 68,438 * Lien Hoe Corp. Berhad 654,850 53,401 Lingui Development Berhad 1,457,900 516,406 Lion Diversified Holdings Berhad 1,044,100 587,628 Lion Industries Corp. Berhad 1,851,381 929,377 Malayan Cement Berhad 67,500 13,750 Malayawata Steel Berhad 645,100 369,922 * Malaysia Building Society Berhad 263,000 56,253 Malaysia Industrial Development Finance Berhad 3,251,000 1,111,238 Malaysia Mining Corp. Berhad 3,938,200 2,217,468 Malaysian Airlines System Berhad 80,000 94,589 Malaysian Mosaics Berhad 1,097,200 453,143 Malaysian National Reinsurance Berhad 156,500 141,611 Malaysian Plantations Berhad 2,514,000 1,559,767 Maruichi Malaysia Steel Tube Berhad 479,000 275,914 Matrix International Berhad 316,000 107,230 Matsushita Electric Co. (Malaysia) Berhad 160,880 435,825 MBM Resources Berhad 349,933 221,055 * Meda, Inc. Berhad 650,100 47,867 Mega First Corp. Berhad 448,000 108,455 Mentakab Rubber Co. (Malaya) Berhad 1,100 791 * Merge Housing Berhad 57,900 24,810 Metro Kajang Holdings Berhad 535,333 202,648 * Metroplex Berhad 817,000 17,202 Mieco Chipboard Berhad 228,000 161,689 * MTD Infraperdana Berhad 2,842,600 533,472 Muda Holdings Berhad 706,000 72,389 Muhibbah Engineering Berhad 321,600 81,863 MUI Properties Berhad 1,314,000 122,768 * Mulpha International Berhad 5,006,400 901,664 * Multi-Purpose Holdings Berhad 1,974,000 585,439 Mutiara Goodyear Development Berhad 247,900 67,840 MWE Holdings Berhad 360,000 59,193 * Mycron Steel Berhad 119,750 45,064 * Naluri Berhad 2,329,400 367,513 * Nam Fatt Berhad 286,100 44,377 Narra Industries Berhad 154,200 68,717 NCB Holdings Berhad 1,463,300 1,046,991 Negri Sembilan Oil Palms Berhad 167,600 105,843 * New Straits Times Press (Malaysia) Berhad 735,600 808,368 Nylex (Malaysia) Berhad 109,750 20,489
Oriental Holdings Berhad 1,834,816 2,152,456 Oriental Interest Berhad 170,000 60,726 OSK Holdings Berhad 1,507,666 614,693 OSK Property Holdings Berhad 186,678 61,344 Pacific & Orient Berhad 239,300 106,951 Pan Malaysia Cement Works Berhad 1,271,800 170,496 * Pan Pacific Asia Berhad 100,000 2,368 * Paracorp Berhad 252,000 12,921 Paramount Corp. Berhad 203,900 123,279 PBA Holdings Berhad 648,400 286,588 Pelangi Berhad 1,655,800 239,485 * Pernas International Holdings Berhad 2,030,200 366,052 Petaling Garden Berhad 636,200 264,433 Petronas Dagangan Berhad 166,400 323,959 Phileo Allied Berhad 1,545,500 1,019,595 * Pilecon Engineering Berhad 210,000 4,400 PJ Development Holdings Berhad 1,043,900 144,372 PK Resources Berhad 25,000 4,633 PPB Group Berhad 1,822,033 3,162,998 * Premium Nutri 513,100 53,226 * Prime Utilities Berhad 46,000 12,642 * Promet Berhad 140,000 10,684 Proton Holdings Berhad 1,305,500 3,126,329 Pulai Springs Berhad 159,800 67,703 RHB Capital Berhad 6,154,200 3,883,025 Road Builders (Malaysia) Holdings Berhad 974,400 666,353 Sapura Telecommunications Berhad 155,152 65,243 Sarawak Enterprise Corp. Berhad 3,311,700 1,193,291 Sarawak Oil Palms Berhad 93,000 53,857 SCB Developments Berhad 188,000 217,631 Scientex, Inc. Berhad 116,000 62,536 Selangor Dredging Berhad 619,000 68,293 Selangor Properties Berhad 1,164,600 698,439 Shangri-La Hotels (Malaysia) Berhad 384,300 125,333 Shell Refining Co. Federation of Malaysia Berhad 48,000 112,416 SHL Consolidated Berhad 561,300 237,910 * Silverstone Corp. Berhad 8,690 868 Sime Darby Berhad (Malaysia) 355,980 566,216 * Sime Engineering Services Berhad 222,000 79,375 * South East Asia Lumber, Inc. Berhad 228,800 64,948 Southern Acids (Malaysia) Berhad 44,000 20,720 Southern Bank Berhad (Foreign) 1,854,950 1,580,212 Southern Steel Berhad 443,000 259,740 Store Corp. Berhad 124,630 84,010 Sunrise Berhad 827,200 363,303 Sunway City Berhad 1,225,700 545,265 * Sunway Holdings, Inc. Berhad 394,000 129,535 * Suria Capital Holdings Berhad 1,181,600 168,992 Ta Enterprise Berhad 4,292,200 1,015,767 Talam Corp. Berhad 139,050 40,255 * Tamco Corp. Holdings Berhad 219,500 21,084 Tan Chong Motor Holdings Berhad 2,220,500 969,638
Tekala Corp. Berhad 337,700 95,029 * Time Dotcom Berhad 6,720,400 1,226,286 Tiong Nam Transport Holdings Berhad 171,500 57,294 Tradewinds (Malaysia) Berhad 782,900 566,349 * Trengganu Development & Management Berhad 534,400 138,065 Tronoh Mines Malaysia Berhad 508,500 378,733 UDA Holdings Berhad 875,200 349,338 * UEM World Berhad 1,725,700 489,669 UMW Holdings Berhad 1,271,243 1,806,529 Unico-Desa Plantations Berhad 1,791,900 216,989 Union Paper Holdings Berhad 1,014,100 207,885 Uniphone Telecommunications Berhad 286,800 65,961 United Malacca Rubber Estates Berhad 310,800 288,094 United Plantations Berhad 341,100 452,896 * Utama Banking Group Berhad 955,000 216,068 VS Industry Berhad 285,500 86,307 Warisan TC Holdings Berhad 109,850 51,741 Worldwide Holdings Berhad 418,600 226,619 WTK Holdings Berhad 282,000 444,694 Yeo Hiap Seng (Malaysia) Berhad 296,100 152,845 YTL Corp. Berhad 946,500 1,269,904 Yu Neh Huat Berhad 208,300 69,634 ------------------ TOTAL COMMON STOCKS (Cost $78,273,577) 90,853,909 ------------------ RIGHTS/WARRANTS -- (0.0%) * Kulim Malaysia Berhad Warrants 06/30/09 144,025 31,458 * Mieco Chipboard Berhad Warrants 04/21/09 76,000 27,800 ------------------ TOTAL RIGHTS/WARRANTS (Cost $2,000) 59,258 ------------------ TOTAL -- MALAYSIA (Cost $78,275,577) 90,913,167 ------------------ TURKEY -- (7.0%) COMMON STOCKS -- (7.0%) * Adana Cimento Sanayi Ticaret A.S. 130,533,878 118,411 * Ak Enerji A.S. 216,113,700 884,547 Akbank T.A.S. 2,744,529,505 13,018,047 * Aksa 148,490,460 1,556,982 Aksigorta A.S. 401,460,655 1,278,578 * Alarko Sanayii ve Ticaret A.S. 40,047,992 290,956 * Alternatifbank A.S. 92,933,793 51,270 * Altinyildiz Mensucat ve Konfeksiyan Fabrikalari A.S. 87,865,000 79,112 * Anadolu Anonim Turk Sigorta Sirketi 450,118,800 904,614 Anadolu Cam Sanayii A.S. 561,694,217 1,747,909 * Ayen Enerji A.S. 52,628,000 452,119 * Bagfas Bandirma Gubre Fabrik 11,130,000 184,463 Bati Cimento A.S. 255,022,921 516,129
* Bolu Cimento Sanayi A.S. 290,345,704 448,618 Borusan 98,343,000 877,349 * Bossa Ticaret ve Sanayi Isletmeleri A.S. 360,180,000 485,092 * Brisa Bridgestone Sanbanci Lastik San & Tic A.S. 9,261,000 464,759 CIMSA A.S. (Cimento Sanayi ve Ticaret) 480,369,600 1,473,061 * Dardanel Onentas 16,183,440 12,715 * Dogan Sirketler Grubu Holdings A.S. 3,007,361,142 5,213,633 * Doktas Dokumculuk Ticaret ve Sanayi A.S. 63,360,000 87,932 * Eczacibasi Yapi Gere 362,756,250 451,376 Eregli Demir ve Celik Fabrikalari Turk A.S. 1,995,394,500 8,286,369 * Finansbank 3,416,061,534 3,864,369 * Goldas Kuyumculuk Sanayi A.S. 327,200,000 377,216 Goltas Cimento 24,412,000 237,049 * Gubre Fabrikalari Ticaret A.S. 29,241,000 54,330 * Gunes Sigorta A.S. 309,093,748 336,407 * Ihlas Holding 319,654,400 243,261 * Izmir Demir Celik 230,946,541 573,469 Kartonsan 1,000,000 92,733 * Kordsa Sabanci Dupont Endustriye Iplik ve Kord Bezi Sanayi ve Ticaret A.S. 414,951,000 687,701 * Kutahya Porslen Sanayii A.S. 7,076,000 115,073 * Mardin Cimento 51,378,750 351,897 Marshall Boya ve Vernik Sanayii A.S. 11,818,000 168,833 * Medya Holdings A.S. Series C 33,508,000 161,400 * Menderes Tekstil Sanayi ve Ticaret A.S. 347,650,000 165,020 * Milpa Ticari ve Sinai Urunler Pazarlama 48,774,528 46,242 * Net Holding A.S. 123,098,207 75,421 * Net Turizm Ticaret ve Sanayi 92,089,000 65,383 * Netas Northern Electric Telekomunikasyon A.S. 24,805,400 541,710 * Otobus Karoseri Sanayi A.S. 98,162,368 386,896 * Pinar Entegre et ve Yem Sanayii A.S. 51,591,600 46,131 Pinar Sut Mamulleri Sanayii A.S. 58,424,850 78,833 * Raks Elektroniks A.S. 5,859,000 5,685 * Sabah Yayincilik A.S. 31,938,000 84,722 Sarkuysan Elektrolitik Bakir Sanayi A.S. 247,799,135 328,555 * Sasa Suni ve Sentetik Elyat Sanayi A.S. 1,121,965,000 1,247,294 * Tat Konserve Sanayii A.S. 175,295,920 331,175 * Tekstil Bankasi A.S. 501,024,697 192,065 Ticaret ve Sanayi A.S. 27,299,993 61,382 Tire Kutsan Oluklu Mukavvakutu ve Kagit Sanayi A.S. 156,597,250 273,165 * Tofas Turk Otomobil Fabrikasi A.S. 544,993,508 1,030,511 Trakya Cam Sanayii A.S. 1,227,824,231 3,187,670 * Turk Demir Dokum Fabrikalari 166,949,478 410,316 Turk Dis Ticaret Bankasi A.S. 1,984,958,042 2,244,001 * Turk Siemens Kablo ve Elektrik Sanayi A.S. 39,312,000 69,226 Turk Sise ve Cam Fabrikalari A.S. 2,182,218,316 5,124,095 * Turkiye Garanti Bankasi A.S. 2,762,007,650 6,754,907 Turkiye Is Bankasi A.S. Series C 1,860,440,560 8,766,399 Ulker Gida Sanayi Ve Ticaret 113,147,029 434,608 * Unye Cimento Sanayi ve Ticaret A.S. 20,978,642 22,337 USAS (Ucak Servisi A.S.) 3,420,000 100,671 * Vestel Elektronik Sanayi Ticaret A.S. 223,134,000 779,921
* Yapi ve Kredi Bankasi A.S. 1,405,653,434 3,755,187 * Yatak ve Vorgan Sanayi ve Ticaret Yatas 18,345,600 16,030 ------------------ TOTAL -- TURKEY (Cost $31,842,604) 82,773,337 ------------------ INDONESIA -- (6.3%) COMMON STOCKS -- (6.3%) * PT Apac Centretex Corporation Tbk 774,000 14,197 PT Asahimas Flat Glass Co., Ltd. 5,333,500 1,422,121 PT Astra Agro Lestari Tbk 12,738,500 4,655,616 PT Astra Graphia Tbk 18,779,000 738,745 PT Bank Central Asia Tbk 2,554,000 778,379 PT Bank NISP Tbk 44,791,078 3,466,501 * PT Bank Pan Indonesia Tbk 113,482,661 5,156,231 PT Berlian Laju Tanker Tbk 54,456,800 4,819,079 PT Bhakti Investama Tbk 31,933,500 956,663 * PT Branta Mulia Tbk 180,000 16,000 * PT Budi Acid Jaya Tbk 6,410,000 85,297 * PT Charoen Pokphand Indonesia Tbk 13,979,000 433,609 * PT Clipan Finance Indonesia Tbk 12,461,000 574,203 * PT Davomas Adabi Tbk 14,203,500 1,729,285 PT Dynaplast Tbk 3,040,000 615,385 * PT Ever Shine Textile Tbk 19,347,215 300,957 * PT Great River International 1,788,000 108,740 * PT Hero Supermarket Tbk 220,000 45,067 PT Indorama Synthetics Tbk 7,901,320 591,630 PT International Nickel Indonesia Tbk 7,522,000 9,852,368 * PT Jaya Real Property 5,189,500 1,052,241 * PT Karwell Indonesia 1,466,500 66,807 * PT Kawasan Industry Jababeka Tbk 534,000 7,085 PT Komatsu Indonesia Tbk 6,049,000 1,907,787 PT Lautan Luas Tbk 7,721,000 338,490 * PT Lippo Karawaci Tbk 170,676 34,047 PT Matahari Putra Prima Tbk Foreign 12,852,500 886,591 PT Mayorah Indah 8,497,572 1,223,186 PT Medco Energi International Tbk 31,249,000 7,186,336 * PT Metrodata Electronics Tbk 18,582,000 174,074 * PT Modern Photo Tbk 1,266,500 84,062 * PT Mutlipolar Corporation Tbk 3,195,000 118,605 * PT Panasia Indosyntec Tbk 403,200 21,840 * PT Panin Insurance Tbk 27,086,000 1,004,039 PT Rig Tenders Indonesia Tbk 2,760,000 284,641 PT Selamat Semp Tbk 10,624,000 359,509 PT Semen Gresik Tbk 8,421,591 11,991,021 * PT Sinar Mas Agro Resources and Technology Tbk 1,688,580 581,622 PT Summarecon Agung Tbk 2,250,000 161,464 * PT Sunson Textile Manufacturer Tbk 6,012,000 91,093 * PT Suparma Tbk 3,995,345 81,768 * PT Surya Dumai Industri Tbk 5,145,000 214,375
PT Surya Toto Indonesia 46,400 28,355 PT Tempo Scan Pacific 6,466,000 6,313,906 PT Tigaraksa Satria Tbk 68,400 28,120 PT Timah Tbk 5,855,000 1,409,160 PT Trias Sentosa Tbk 29,527,200 702,407 PT Trimegah Sec Tbk 34,298,000 702,984 PT Tunas Ridean Tbk 10,810,000 722,529 * PT Ultrajaya Milk Industry & Trading Co. 13,717,500 646,683 PT Unggul Indah Corp. Tbk 371,435 86,668 ----------------- TOTAL COMMON STOCKS (Cost $37,400,548) 74,871,568 ------------------ INVESTMENT IN CURRENCY -- (0.0%) * Indonesia Rupiah 1,057 ------------------ (Cost $1,131) TOTAL -- INDONESIA (Cost $37,401,679) 74,872,625 ------------------ ISRAEL -- (5.7%) COMMON STOCKS -- (5.7%) * Afcon Industries, Ltd. 2,102 7,984 American Israeli Paper Mills, Ltd. 13,563 761,052 * Ashtrom Properties, Ltd. 171,400 66,135 * Azorim Investment Development & Construction Co., Ltd. 299,403 2,410,217 Bank Hapoalim, Ltd. 3,775,700 11,007,262 Bank Leumi Le-Israel 4,836,950 11,358,181 Bank of Jerusalem, Ltd. 71,150 69,132 * Baran Group, Ltd. 94,200 695,272 Blue Square Chain Stores Properties & Investments, Ltd. 33,400 300,870 CLAL Industries, Ltd. 773,796 3,445,597 Delta Galil Industries, Ltd. 78,554 731,987 * Discount Mortgage Bank, Ltd. 3,611 345,936 * Elbit Medical Imaging 192,747 1,829,891 Elco Industries (1975) 11,441 44,073 Electra Consumer 23,400 174,970 * Electrochemical Industries (1952), Ltd. 48,800 1,724 * Elron Electronic Industries, Ltd. 202,296 2,902,441 * Feuchtwanger Investments 1984, Ltd. 10,500 6,035 * First International Bank of Israel 294,660 1,720,855 * First International Bank of Israel, Ltd. 434,800 535,200 * Formula Systems (1985), Ltd. 93,700 1,428,953 * Formula Vision Technologies, Ltd. 1,953 1,609 * Global Trade Centre Real Estate 3,052 3,276 * Granite Hacarmel Investments, Ltd. 142,500 211,647 IDB Development Corp., Ltd. Series A 87,522 2,281,454 Industrial Building Corp., Ltd. 408,034 452,300 Investec Bank, Ltd. 4,400 143,475 Israel Cold Storage & Supply Co., Ltd. 7,000 30,197 * Israel Corp. Series A 4,000 792,648
* Israel Land Development Co., Ltd. 234,969 625,978 Israel Petrochemical Enterprises, Ltd. 253,817 1,815,589 * Israel Steel Mills, Ltd. 97,000 868 * Kardan Real Estate, Ltd. 3,052 2,441 Knafaim-Arkia Holdings, Ltd. 117,857 1,556,266 * Koor Industries, Ltd. 125,769 5,851,171 * Leader Holding & Investments, Ltd. 113,800 150,949 * Liberty Properties, Ltd. 3,457 23,602 M.A.Industries, Ltd. 227,355 1,117,777 Mehadrin, Ltd. 24,063 388,541 Merhav-Ceramic & Building Materials Center, Ltd. 36,232 47,272 Middle East Tube Co. 46,200 45,823 Miloumor, Ltd. 26,800 110,323 * Minrav Holdings, Ltd. 2,000 77,903 * Nice Systems, Ltd. 50,930 1,442,344 * OCIF Investments and Development, Ltd. 3,380 42,338 Otzar Hashilton Hamekomi, Ltd. 1,050 76,155 Packer Plada, Ltd. 2,877 153,208 * Polgat Industries, Ltd. Series B 21,900 53,889 Property and Building Corp., Ltd. 7,261 545,540 Scitex Corp., Ltd. 365,565 1,652,295 * Shrem Fudim Kelner & Co., Ltd. 28,100 77,364 * Super-Sol, Ltd. Series B 688,337 1,613,360 * Team Computer & Systems, Ltd. 7,900 84,766 * Union Bank of Israel, Ltd. 373,011 1,256,518 United Mizrahi Bank, Ltd. 1,233,305 4,665,069 * Urdan Industries, Ltd. 183,950 87,148 Ytong Industries, Ltd. 174,250 141,069 ------------------ TOTAL COMMON STOCKS (Cost $50,280,448) 67,465,939 ------------------ INVESTMENT IN CURRENCY -- (0.0%) * Israel Shekel 6,255 ------------------ (Cost $6,027) RIGHTS/WARRANTS -- (0.0%) * Global Trade Centre Warrants 10/10/04 183 0 * GTC Warrants 91 0 ------------------ TOTAL RIGHTS/WARRANTS (Cost $0) 0 ------------------ TOTAL -- ISRAEL (Cost $50,286,475) 67,472,194 ------------------ THAILAND -- (4.8%) COMMON STOCKS -- (4.8%) * Adkinson Securities Public Co., Ltd. (Foreign) 1,753,500 351,501 * Advance Agro Public Co., Ltd. (Foreign) 1,587,830 1,017,323
American Standard Sanitaryware (Thailand) Public Co. Ltd. (Foreign) 4,150 28,011 Bangkok Bank Public Co., Ltd. 229,700 664,446 Bangkok Expressway Public Co., Ltd. (Foreign) 4,575,300 2,890,763 Bangkok Insurance Public Co., Ltd. 20,800 120,335 * Bangkok Land Co., Ltd. (Foreign) 15,770,403 276,112 * Bank of Ayudhya Public Co., Ltd. (Foreign) 12,702,400 4,061,158 Banpu Public Co., Ltd. (Foreign) 1,172,600 4,611,850 Big C Supercenter Public Co., Ltd. (Foreign) 1,274,800 608,126 Cal-Comp Electronics (Thailand) Public Co., Ltd. 344,500 305,950 Capital Nomura Securities Public Co., Ltd. (Foreign) 370,100 657,371 Central Plaza Hotel Public Co., Ltd. (Foreign) 723,000 339,394 Charoen Pokphand Foods Public Co., Ltd. (Foreign) 15,460,340 1,388,724 Delta Electronics (Thailand) Public Co., Ltd. (Foreign) 801,300 339,551 * Eastern Star Real Estate Public Co., Ltd. (Foreign) 1,690,100 24,444 Eastern Water Resources Development & Management Public Co., Ltd. (Foreign) 859,080 697,553 * Finansa Public Co., Ltd. 47,700 36,008 Hana Microelectronics Public Co., Ltd. 935,000 465,009 Hermraj Land & Development Public Co., Ltd. 2,199,700 56,932 ICC International Public Co., Ltd. 2,755,000 2,726,338 * Jasmine International Public Co., Ltd. (Foreign) 7,213,100 128,119 Kang Yong Electric Public Co., Ltd. (Foreign) 236,200 389,571 * Kasikornbank PCL (Foreign) 1,530,000 2,232,301 KCE Electronics Public Co., Ltd. (Foreign) 120,000 23,750 KGI Securities One Public Co., Ltd. (Foreign) 1,727,200 149,886 Krung Thai Bank Public Co., Ltd. (Foreign) 7,702,100 1,758,916 * Krungthai Card Public Co., Ltd. 170,800 101,847 Laguna Resorts & Hotels Public Co., Ltd. (Foreign) 545,800 699,388 Loxley Public Co., Ltd. (Foreign) 1,347,600 121,732 MBK Development Public Co., Ltd. 226,700 277,551 * Millennium Steel Public Co., Ltd. 2,811,400 149,808 Modernform Group Public Co., Ltd. (Foreign) 46,000 40,561 Muramoto Electronic (Thailand) Public Co., Ltd. (Foreign) 134,300 1,070,038 * Nakornthai Strip Mill Public Co., Ltd. 10,058,100 464,495 National Finance and Securities Public Co., Ltd. (Foreign) 9,023,000 2,884,796 National Petrochemical Public Co., Ltd. (Foreign) 2,010,600 5,356,838 * Natural Park Public Co., Ltd. (Foreign) 2,593,500 85,551 * Pacific Assets Public Co., Ltd. (Foreign) 380,000 46,283 * Padaeng Industry Public Co., Ltd. (Foreign) 1,600,800 487,430 Quality Houses Public Co., Ltd. (Foreign) 6,835,400 211,601 Regional Container Lines Public Co., Ltd. 6,950,000 5,334,623 Saha Pathana Inter-Holding Public Co., Ltd. 3,316,000 1,169,561 Saha Pathanapibul Public Co., Ltd. (Foreign) 1,367,000 383,287 Saha-Union Public Co., Ltd. (Foreign) 3,025,300 1,381,766 Sansiri Public Co., Ltd. 562,300 46,799 Shinawatra Satellite Public Co., Ltd. (Foreign) 282,200 126,743 Siam Commercial Bank Public Co., Ltd. (Foreign) 1,137,800 1,457,978 Siam Food Products Public Co., Ltd. (Foreign) 97,100 192,180 Siam Industrial Credit Public Co., Ltd. 4,055,050 632,798 Siam Makro Public Co., Ltd. (Foreign) 77,200 99,904 * Standard Chartered Nakornthon Bank Public Co., Ltd. (Foreign) 839 70,254
Supalai (Forign) 456,500 32,665 Thai Plastic & Chemicals Public Co., Ltd. (Foreign) 290,000 145,699 Thai Rayon Public Co., Ltd. 16,500 145,699 Thai Rung Union Car Public Co., Ltd. (Foreign) 5,386,250 1,530,728 * Tipco Asphalt Public Co., Ltd. (Foreign) 43,600 26,552 * TPI Polene Public Co., Ltd. (Foreign) 3,890,162 2,739,203 * Tuntex (Thailand) Public Co., Ltd. (Foreign) 1,987,600 96,833 * Tycoons Worldwide Group Public Co., Ltd. 703,300 215,933 * United Communication Industry Public Co., Ltd. (Foreign) 864,400 1,469,546 * Vinythai Public Co., Ltd. (Foreign) 1,988,317 585,244 ------------------ TOTAL COMMON STOCKS (Cost $29,044,407) 56,231,356 ------------------ RIGHTS/WARRANTS -- (0.0%) * Bangkok Land (Foreign) Warrants 2006 3,987,330 0 * Eastern Water Resources Develpoment & Management Public Co., Ltd. (Foreign) Warrants 11/02/04 229,088 0 * Modernform Group Public Co., Ltd. Warrants 11/30/07 4,600 0 ------------------ TOTAL RIGHTS/WARRANTS (Cost $0) 0 ------------------ TOTAL -- THAILAND (Cost $29,044,407) 56,231,356 ------------------ HUNGARY -- (3.1%) COMMON STOCKS -- (3.1%) * Danubius Hotel & Spa RT 172,246 5,047,225 Egis RT 80,537 4,674,703 * Fotex First Hungarian-American Photo Service Co. 2,356,737 1,827,776 * Globus Konzervipari RT 349,690 1,141,126 Magyar Olay-Es Gazipari RT 183,209 12,377,521 * Mezogazdasagi Gepgyarto Reszvenytarsasag (Mezogep) 100,770 520,419 * North American Business Industries RT 121,832 291,234 * Pannonplast P.L.C. 138,882 918,067 * Raba Hungarian Railway Carriage & Machine Works 482,083 1,673,538 * Synergon Information Systems Ltd., Budapest 247,161 445,783 * Tiszai Vegyi Kombinat RT 253,242 7,190,453 ------------------ TOTAL -- HUNGARY (Cost $23,732,647) 36,107,845 ------------------ CHILE -- (3.0%) COMMON STOCKS -- (3.0%) Banco de Credito e Inversiones SA Series A 54,733 1,181,656 Banmedica SA 347,000 224,156 CAP SA (Compania de Aceros del Pacifico) 199,310 1,717,810 Cementos Bio-Bio S.A. 62,327 156,811
Cervecerias Unidas SA 143,000 724,420 Consumidores de Gas de Santiago SA 103,000 548,049 COPEC (Cia de Petroleos de Chile) 947,488 7,489,705 Cristalerias de Chile SA 14,500 149,745 CTI SA (Cia Tecno Industrial) 4,900,000 101,707 Empresa Nacional de Electricidad SA 2,479,503 1,374,106 Empresa Nacional de Telecomunicaciones SA 86,880 635,077 Empresas CMPC SA 286,547 6,575,602 * Empresas Iansa SA 4,994,997 241,152 * Enersis SA 11,284,592 1,699,643 Industrias Forestales Inforsa SA 2,387,597 572,293 Inversiones Frimetal SA 4,900,000 0 * Madeco Manufacturera de Cobre SA 1,450,969 148,735 Maderas y Sinteticos SA 1,414,095 901,463 Minera Valparaiso SA 7,500 97,535 Parque Arauco S.A. 543,207 280,722 Sociedad Industrial Pizarreno SA 63,000 155,827 Sociedad Quimica y Minera de Chile SA Series A 43,364 261,695 Sociedad Quimica y Minera de Chile SA Series B 945,090 5,751,674 Soquimic Comercial SA 150,000 73,948 Sud Americana de Vapores SA 410,000 944,411 Telecomunicaciones de Chile SA Series A 477,600 1,274,683 Telecomunicaciones de Chile SA Series B 372,166 917,366 Vina de Concha y Toro SA 350,000 520,600 Vina San Pedro SA 4,500,000 48,959 Vina Sta Carolina SA Series A 163,489 110,336 ------------------ TOTAL COMMON STOCKS (Cost $19,296,477) 34,879,886 ------------------ INVESTMENT IN CURRENCY -- (0.0%) * Chilean Pesos 22,521 ------------------ (Cost $22,286) TOTAL -- CHILE (Cost $19,318,763) 34,902,407 ------------------ POLAND -- (2.7%) COMMON STOCKS -- (2.7%) * Amica Wronki SA 174,355 1,938,420 * Bank Ochrony Srodowiska SA 4,447 66,451 Bank Przemyslowo Handlowy Pbk 9,050 1,293,510 Bank Zackodni Wbk SA 31,975 886,867 * Big Bank Gdanski SA 2,628,365 2,613,046 * Budimex SA 74,631 1,011,471 Debica SA 13,100 416,588 * Huta Ferrum SA 4,233 11,162 * Impexmetal SA 241,068 3,824,727 * Kredyt Bank SA 959,329 2,591,723 Lentex SA 104,119 827,453 * Mostostal Export SA 654,595 287,661
* Mostostal Warszawa SA 183,300 354,655 * Mostostal Zabrze Holding SA 140,376 33,489 * Netia Holdings SA 778,057 1,088,115 Orbis SA 561,018 4,264,844 Polifarb Cieszyn Wroclaw SA 929,467 2,274,921 Polski Koncern Naftowy Orlen S.A. 402,322 4,782,623 Przedsiebiorstwo Farmaceutyczne JELFA SA 139,333 2,356,191 * Raciborska Fabryka Kotlow SA 291,972 1,210,917 * Stalexport SA 117,513 99,720 * Ster-Projekt SA 10,577 20,490 ------------------ TOTAL -- POLAND (Cost $23,766,828) 32,255,044 ------------------ ARGENTINA -- (2.2%) COMMON STOCKS -- (2.2%) * Acindar Industria Argentina de Aceros SA Series B 2,261,067 3,224,294 * Alpargatas SA Industrial y Comercial 6,363 3,011 Banco del Sud Sociedad Anonima Series B 310,563 335,897 * Banco Frances del Rio de la Plata SA 353,379 668,860 * Banco Suquia SA 327,868 52,242 * Capex SA Series A 131,575 199,062 * Celulosa Argentina SA Series B 10,843 9,040 * Central Costanera SA Series B 261,000 329,340 * Central Puerto SA Series B 161,000 82,921 Cresud SA Comercial Industrial Financiera y Agropecuaria 535,252 749,489 DYCASA SA (Dragados y Construcciones Argentina) Series B 55,000 44,261 * Garovaglio y Zorraquin SA 65,800 9,002 * Grupo Financiero Galicia SA Series B 2,067,935 1,431,175 * IRSA Inversiones y Representaciones SA 1,257,197 1,214,065 * Juan Minetti SA 806,693 877,693 Ledesma S.A.A.I. 885,405 547,218 * Metrogas SA Series B 176,000 64,019 * Molinos Rio de la Plata SA Series B 541,214 740,415 * Polledo SA Industrial y Constructora y Financiera 50,000 8,369 * Renault Argentina SA 2,501,957 491,278 Siderar SAIC Series A 645,512 3,896,037 * Sol Petroleo SA 173,000 26,730 Solvay Indupa S.A.I.C. 1,334,322 1,374,447 * Telecom Argentina Stet-France SA Series B 476,600 972,659 Tenaris SA 1,660,259 7,936,331 * Transportadora de Gas del Sur SA Series B 660,500 644,218 ------------------ TOTAL COMMON STOCKS (Cost $19,009,343) 25,932,073 ------------------ RIGHTS/WARRANTS -- (0.0%) * BBVA Banco Frances Rights 11/17/04 237,500 52,751 ------------------ (Cost $0)
INVESTMENT IN CURRENCY -- (0.0%) * Argentine Peso 3,417 ------------------ (Cost $3,426) TOTAL -- ARGENTINA (Cost $19,012,769) 25,988,241 ------------------ PHILIPPINES -- (2.2%) COMMON STOCKS -- (2.2%) Aboitiz Equity Ventures, Inc. 5,782,000 334,134 Alaska Milk Corp. 7,953,000 417,586 * Alsons Consolidated Resources, Inc. 16,904,000 96,251 Bacnotan Consolidated Industries, Inc. 1,696,970 479,349 * Belle Corp. 30,800,000 328,624 * Cebu Holdings, Inc. 7,763,250 69,353 * Digital Telecommunications (Philippines), Inc. 131,630,000 4,440,325 * Equitable PCI Bank, Inc. 2,841,900 2,606,839 * Fil-Estate Land, Inc. 3,196,340 28,360 * Filinvest Development Corp. 5,283,500 92,601 * Filinvest Land, Inc. 151,904,100 2,915,224 * Filipina Water Bottling Corp. 5,471,786 0 * First E-Bank Corp. 409,000 8,102 Keppel Philippines Marine, Inc. 9,725,165 58,836 * Kuok Philippine Properties, Inc. 4,300,000 15,376 * Megaworld Properties & Holdings, Inc. 179,870,000 4,022,193 Metro Bank and Trust Co. 349,020 180,253 * Mondragon International Philippines, Inc. 2,464,000 5,480 Petron Corp. 15,160,000 889,677 * Philippine National Bank 3,619,900 1,464,313 * Philippine National Construction Corp. 398,900 26,262 * Philippine Realty & Holdings Corp. 20,930,000 89,381 Philippine Savings Bank 1,095,390 555,491 * Prime Orion Philippines, Inc. 14,400,000 43,308 * RFM Corp. 2,488,200 30,665 Robinson's Land Corp. Series B 16,019,000 701,332 Security Bank Corp. 2,713,200 1,305,478 SM Development Corp. 21,996,400 562,189 * Solid Group, Inc. 19,668,000 139,424 Soriano (A.) Corp. 20,195,000 567,058 Union Bank of the Philippines 547,400 223,935 Universal Robina Corp. 16,140,300 2,868,555 * Urban Bank, Inc. 14,950 122 ------------------ TOTAL -- PHILIPPINES (Cost $28,352,716) 25,566,076 ------------------ CZECH REPUBLIC -- (0.8%) COMMON STOCKS -- (0.8%) Ceske Telecom A.S. 185,201 2,772,440
CEZ A.S. 491,462 7,088,714 ------------------ TOTAL -- CZECH REPUBLIC (Cost $7,263,981) 9,861,154 ------------------
VALUE+ ------------------ EMU -- (0.0%) INVESTMENT IN CURRENCY -- (0.0%) * Euro Currency 549 ------------------ (Cost $372) FACE AMOUNT VALUE+ ------------ ------------------ (000) TEMPORARY CASH INVESTMENTS -- (0.6%) Repurchase Agreement, PNC Capital Markets, Inc. 1.88%, 12/01/04 (Collateralized by $6,920,000 FNMA Notes 2.95%, 11/14/07, valued at $6,929,709) to be repurchased at $6,834,357 6,834 6,834,000 ------------------ (Cost $6,834,000) TOTAL INVESTMENTS - (100.0%) (Cost $742,067,139) $ 1,178,009,783 ------------------
---------- + Securities have been fair valued. See Note B to Financial Statements. * Non-Income Producing Securities. See accompanying Notes to Financial Statements. DIMENSIONAL EMERGING MARKETS VALUE FUND INC. STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 2004 (AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS) ASSETS: Investments at Value (Cost $742,067) $ 1,178,010 Cash 9 Receivables: Investment Securities Sold 779 Dividends and Interest 1,530 Fund Shares Sold 1,391 ------------ Total Assets 1,181,719 ------------ LIABILITIES: Payables: Investment Securities Purchased 522 Fund Shares Redeemed 3,520 Due to Advisor 93 Deferred Thailand Capital Gains Tax 4,368 Deferred Chilean Repatriation Tax 17 Accrued Expenses and Other Liabilities 249 ------------ Total Liabilities 8,769 ------------ NET ASSETS applicable to 42,541,317 shares outstanding $0.01 par value shares (Authorized 200,000,000 shares) $ 1,172,950 ============ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 27.57 ============ NET ASSETS CONSIST OF: Paid-in Capital $ 717,020 Accumulated Net Investment Income (Loss) 3,225 Accumulated Net Realized Gain (Loss) 22,438 Accumulated Net Realized Foreign Exchange Gain (Loss) (1,330) Unrealized Appreciation (Depreciation) from Investment Securities and Foreign Currency Transactions 435,943 Unrealized Net Foreign Exchange Gain (Loss) 22 Deferred Thailand Capital Gains Tax (4,368) ------------ Total Net Assets $ 1,172,950 ============
See accompanying Notes to Financial Statements. 22 STATEMENT OF OPERATIONS FOR THE YEAR ENDED NOVEMBER 30, 2004 (AMOUNTS IN THOUSANDS) INVESTMENT INCOME Dividends (Net of Foreign Taxes Withheld of $3,034) $ 22,565 Interest 141 ------------ Total Investment Income 22,706 ------------ EXPENSES Investment Advisory Services 852 Accounting & Transfer Agent Fees 692 Custodian Fees 1,095 Legal Fees 42 Audit Fees 31 Shareholders' Reports 75 Directors' Fees and Expenses 6 Other 68 ------------ Total Expenses 2,861 ------------ NET INVESTMENT INCOME (LOSS) 19,845 ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY Net Realized Gain (Loss) on Investment Securities Sold 26,764 Net Realized Gain (Loss) on Foreign Currency Transactions (1,330) Change in Unrealized Appreciation (Depreciation) of: Investment Securities and Foreign Currency 294,842 Translation of Foreign Currency Denominated Amounts 36 Deferred Thailand Capital Gains Tax 1,032 ------------ NET GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY 321,344 ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 341,189 ============
See accompanying Notes to Financial Statements. 23 STATEMENTS OF CHANGES IN NET ASSETS (AMOUNTS IN THOUSANDS)
YEAR YEAR ENDED ENDED NOV. 30, NOV. 30, 2004 2003 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS Operations: Net Investment Income (Loss) $ 19,845 $ 9,519 Net Realized Gain (Loss) on Investment Securities Sold 26,764 9,445 Net Realized Gain (Loss) on Foreign Currency Transactions (1,330) (301) Change in Unrealized Appreciation (Depreciation) of: Investment Securities and Foreign Currency 294,842 164,617 Translation of Foreign Currency Denominated Amounts 36 (93) Deferred Thailand Capital Gains Tax 1,032 (3,793) ------------ ------------ Net Increase (Decrease) in Net Assets Resulting from Operations 341,189 179,394 ------------ ------------ Distributions From: Net Investment Income (15,246) (10,213) Net Long-Term Gains (6,727) -- ------------ ------------ Total Distributions (21,973) (10,213) ------------ ------------ Capital Share Transactions (1): Shares Issued 283,404 187,083 Shares Issued in Lieu of Cash Distributions 19,331 10,213 Shares Redeemed (66,724) (94,351) ------------ ------------ Net Increase (Decrease) from Capital Share Transactions 236,011 102,945 ------------ ------------ Total Increase (Decrease) 555,227 272,126 NET ASSETS Beginning of Period 617,723 345,597 ------------ ------------ End of Period $ 1,172,950 $ 617,723 ============ ============ (1) SHARES ISSUED AND REDEEMED: Shares Issued 12,545 11,549 Shares Issued in Lieu of Cash Distributions 905 597 Shares Redeemed (3,000) (7,037) ------------ ------------ 10,450 5,109 ============ ============
See accompanying Notes to Financial Statements. 24 DIMENSIONAL EMERGING MARKETS VALUE FUND INC. FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30, 2004 2003 2002 2001 2000 ------------ ------------ ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 19.25 $ 12.81 $ 12.28 $ 14.14 $ 20.88 ------------ ------------ ------------ ------------ ------------ INCOME FROM INVESTMENT OPERATIONS Net Investment Income (Loss) 0.62 0.33 0.23 0.38 0.19 Net Gains (Losses) on Securities (Realized and Unrealized) 8.32 6.45 0.83 (0.92) (5.75) ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 8.94 6.78 1.06 (0.54) (5.56) ------------ ------------ ------------ ------------ ------------ LESS DISTRIBUTIONS Net Investment Income (0.41) (0.34) (0.32) (0.33) (0.16) Net Realized Gains (0.21) -- (0.21) (0.99) (1.02) ------------ ------------ ------------ ------------ ------------ Total Distributions (0.62) (0.34) (0.53) (1.32) (1.18) ------------ ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 27.57 $ 19.25 $ 12.81 $ 12.28 $ 14.14 ============ ============ ============ ============ ============ Total Investment Return 47.38% 53.30% 8.79% (4.34)% (28.02)% Net Assets, End of Period (thousands) $ 1,172,950 $ 617,723 $ 345,597 $ 279,096 $ 295,276 Ratio of Expenses to Average Net Assets 0.34% 0.42% 0.40% 0.52% 0.54% Ratio of Net Investment Income to Average Net Assets 2.29% 2.39% 1.67% 3.16% 1.46% Portfolio Turnover Rate 8% 10% 15% 19% 19%
See accompanying Notes to Financial Statements. 25 DIMENSIONAL EMERGING MARKETS VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS A. ORGANIZATION: Dimensional Emerging Markets Value Fund Inc. (the "Fund") was organized as a closed-end management investment company registered under the Investment Company Act of 1940, as amended. Effective November 21, 1997, the Fund was reorganized as an open-end management investment company. B. SIGNIFICANT ACCOUNTING POLICIES: The following significant accounting policies are in conformity with accounting principles generally accepted in the United States of America. Such policies are consistently followed by the Fund in preparation of its financial statements. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operation during the reporting period. Actual results could differ from those estimates and those differences could be material. 1. SECURITY VALUATION: Securities held by the Fund which are listed on a securities exchange and for which market quotations are readily available are valued at the last quoted sale price of the day or, if there is no such reported sale, at the mean between the most recent bid and asked prices. Price information on listed securities is taken from the exchange where the security is primarily traded. Unlisted securities for which market quotations are readily available are valued at the mean between the quoted bid and asked prices. Securities for which quotations are not readily available, or for which market quotations have become unreliable, are approved in good faith at fair value using methods approved by the Board of Directors. The Fund will also apply a fair value price in the circumstances described below. Generally, trading in foreign securities markets is completed each day at various times prior to the close of the New York Stock Exchange (NYSE). For example, trading in the Japanese securities markets is completed each day at the close of the Tokyo Stock Exchange (generally 11:00 p.m. PT), which is fourteen hours prior to the close of the NYSE (generally 1:00 p.m. PT) and the time that the net asset value of the Fund is computed. Due to the time differences between the closings of the relevant foreign securities exchanges and the time the Fund prices its shares at the close of the NYSE, the Fund will fair value its foreign investments when it is determined that the market quotations for the foreign investments are either unreliable or not readily available. The fair value prices will attempt to reflect the impact of the U.S. financial markets' perceptions and trading activities on the Fund's foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Directors of the Fund has determined that movements in relevant indices or other appropriate market indicators, after the close of the Tokyo Stock Exchange or the London Stock Exchange, demonstrate that market quotations may be unreliable, and may trigger fair value pricing. Consequently, fair valuation of portfolio securities may occur on a daily basis. The fair value pricing by the Fund utilizes data furnished by an independent pricing service (and that data draws upon, among other information, the market values of foreign investments). The fair value prices of portfolio securities generally will be used when it is determined that the use of such prices will have a material impact on the net asset value of a Fund. When the Fund uses fair value pricing, the values assigned to the Fund's foreign investments may not be the quoted or published prices of the investments on their primary markets or exchanges. 2. FOREIGN CURRENCY TRANSLATIONS: Securities and other assets and liabilities of the Fund whose values are initially expressed in foreign currencies are translated to U.S. dollars using the mean between the most recently quoted bid and asked prices for the U.S. dollar as quoted by generally recognized reliable sources. Dividend and interest income and certain expenses are translated to U.S. dollars at the rate of exchange on their respective accrual dates. Receivables and payables denominated in foreign currencies are marked to market based on daily exchange rates and exchange gains or losses are realized upon ultimate receipt or disbursement. 26 The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities held whether realized or unrealized. Realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from the disposition of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between amounts of interest, dividends and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. 3. REPURCHASE AGREEMENTS: The Fund may purchase money market instruments from financial institutions, such as banks and non-bank dealers, subject to the counterparty's agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system or with the Fund's custodian or a third party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements were entered into on November 30, 2004. 4. FOREIGN MARKET RISKS: Investments in foreign markets may involve certain considerations and risks not typically associated with investments in the United States, including the possibility of future political and economic developments and the level of foreign governmental supervision and regulation of foreign securities markets. These markets are generally smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Fund may be inhibited. 5. DEFERRED COMPENSATION PLAN: Each eligible Director of the Fund may elect participation in the Deferred Compensation Plan (the "Plan"). Under the Plan, effective January 1, 2002, such Directors may defer payment of a percentage of their total fees earned as a Director. These deferred amounts may be treated as though such amounts had been invested in shares of the following funds: U.S. Large Cap Value Portfolio, U.S. Micro Cap Portfolio, DFA International Value Portfolio, Emerging Markets Portfolio and/or DFA Two-Year Global Fixed Income Portfolio. Contributions made under the Plan and the change in unrealized appreciation (depreciation) and income, are included in Directors' Fees and Expenses. At November 30, 2004, the total liability for deferred compensation to Directors is included in Accrued Expenses and Other Liabilities in the amount of $13,700. 6. OTHER: Security transactions are accounted for on the trade date. Costs used in determining realized gains and losses on the sale of investment securities are on the basis of identified cost. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. The Fund may be subject to taxes imposed by countries in which it invests, with respect to its investment in issuers existing or operating in such countries. Such taxes are generally based on income earned or repatriated and capital gains realized on the sale of such investments. The Fund accrues such taxes when the related income or capital gains are earned. Some countries require governmental approval for the repatriation of investment income, capital or the proceeds of sales earned by foreign investors. In addition, if there is a deterioration in a country's balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad. The Fund's investments in Chile are subject to governmental taxes on investment income. Such taxes are due when currencies are repatriated from the country. The Fund accrues for taxes on income as income is earned. The Fund's investments in Thailand are subject to a 15% governmental capital gains tax. Such taxes are due upon sale of individual securities. The Fund accrues for taxes on the capital gains throughout the holding period of the underlying securities. 27 C. INVESTMENT ADVISOR: Dimensional Fund Advisors Inc. ("Dimensional" or the "Advisor") provides investment advisory services to the Fund. For the year ended November 30, 2004, the Fund paid the Advisor a fee based on an annual effective rate of 0.10 of 1% of average net assets. Certain officers of the Fund are also officers, directors and shareholders of the Advisor. D. PURCHASES AND SALES OF SECURITIES: For the year ended November 30, 2004, the Fund made the following purchases and sales of investment securities other than short-term securities (amounts in thousands): Purchases $ 307,963 Sales 65,388
There were no purchases or sales of U.S. Government Securities during the year ended November 30, 2004. E. FEDERAL INCOME TAXES: The Fund has qualified and intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code for federal income tax purposes and to distribute substantially all of its taxable income and net capital gains to shareholders. Accordingly, no provision has been made for federal income taxes. Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital, accumulated net realized gains, and undistributed net investment income as appropriate, in the period that the differences arise. Accordingly, the following permanent differences as of November 30, 2004, primarily attributable to realized net foreign currency gains/losses and net realized gains on securities considered to be "passive foreign investment companies", were reclassified to the following accounts (amounts in thousands):
INCREASE INCREASE (DECREASE) (DECREASE) ACCUMULATED UNDISTRIBUTED NET REALIZED NET INVESTMENT GAINS INCOME ------------ -------------- $ (1,396) $ 1,396
These reclassifications had no effect on net assets or net asset value per share. The tax character of dividends and distributions declared and paid during the years ended November 30, 2004 and 2003 were as follows (amounts in thousands):
ORDINARY INCOME AND SHORT-TERM LONG-TERM GAINS CAPITAL GAIN TOTAL ---------- ------------ --------- 2004 $ 15,246 $ 6,727 $ 21,973 2003 10,213 -- 10,213
Short-term gain distributions to shareholders are treated as ordinary income for tax purposes. 28 As of November 30, 2004, the components of distributable earnings/(accumulated losses) were as follows (amounts in thousands):
TOTAL NET DISTRIBUTABLE UNDISTRIBUTED UNDISTRIBUTED EARNINGS NET INVESTMENT NET REALIZED (ACCUMULATED INCOME CAPITAL GAINS LOSSES) -------------- ------------- ------------ $ 5,282 $ 24,032 $ 29,314
Certain of the Funds's investments are in securities considered to be "passive foreign investment companies", for which any unrealized appreciation (depreciation) (mark to market) and/or realized gains are required to be included in distributable net investment income for tax purposes. During the year ended November 30, 2004, the Fund had unrealized appreciation (depreciation) (mark to market) and realized gains on the sale of passive foreign investment companies, of $1,967,765 and $2,725,434, respectively, which are included in distributable net investment income for tax purposes, accordingly, such gains have been reclassified from accumulated net realized gains to accumulated net investment income. At November 30, 2004, the total cost of securities and net realized gains or losses on securities sold for federal income tax purposes were different from amounts reported for financial reporting purposes. The federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by each the Fund, at November 30, 2004 were as follows (amounts in thousands):
NET UNREALIZED FEDERAL UNREALIZED UNREALIZED APPRECIATION/ TAX COST APPRECIATION DEPRECIATION (DEPRECIATION) ---------- ------------ ------------ -------------- $ 747,035 $ 482,228 $ (51,253) $ 430,975
F. LINE OF CREDIT: The Fund together with other Dimensional-advised portfolios, has entered into a $50 million unsecured discretionary line of credit effective June 2004 with its domestic custodian bank. The Fund is permitted to borrow, subject to its investment limitations, up to a maximum of $50 million, as long as total borrowings under the line of credit do not exceed $50 million in the aggregate. Borrowings under the line of credit are charged interest at the then current federal funds rate plus 1%. Each portfolio is individually, and not jointly liable for its particular advances under the line of credit. There is no commitment fee on the unused portion of the line of credit, since this is not a committed facility. The agreement for the discretionary line of credit may be terminated by either party at any time. The agreement for the line of credit expires on June 28, 2005. There were no borrowings by the Fund under the discretionary line of credit with the domestic custodian bank during the year ended November 30, 2004. The Fund, together with other Dimensional-advised portfolios, has also entered into an additional $150 million unsecured line of credit effective April 2004 with its international custodian bank. Each portfolio is permitted to borrow, subject to investment limitations, up to a maximum of $150 million, as long as total borrowings under the line of credit do not exceed $150 million in the aggregate. Each portfolio is individually, and not jointly liable for its particular advances under the line of credit. Borrowings under the line of credit are charged interest at rates agreed to by the parties at the time of borrowing. There is no commitment fee on the unused line of credit. The agreement for the line of credit expires in April 2005. There were no borrowings by the Fund under the line of credit during the year ended November 30, 2004. G. CONTRACTUAL OBLIGATIONS: In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnification. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote. 29 REPORT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF DIMENSIONAL EMERGING MARKETS VALUE FUND INC. In our opinion, the accompanying statement of assets and liabilities, including the summary schedule of portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Dimensional Emerging Markets Value Fund Inc. (the "Fund") at November 30, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2004 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Fort Lauderdale, Florida January 14, 2005 30 FUND MANAGEMENT TRUSTEES/DIRECTORS Each Board of Trustees/Directors of The DFA Investment Trust Company Inc. ("DFAITC"), DFA Investment Dimensions Group Inc. ("DFAIDG"), Dimensional Investment Group Inc. ("DIG") and Dimensional Emerging Markets Value Fund Inc. ("DEM") (each, the "Fund" and collectively, the "Funds") is responsible for establishing the Fund's policies and for overseeing the management of the Fund. The Trustees/Directors of the Funds, including all of the disinterested Directors, have adopted written procedures to monitor potential conflicts of interest that might develop between portfolios of the Funds (the "Feeder Portfolios") that invest in certain series of DFAITC or DEM (the "Master Funds"). Each Board has two standing committees, an Audit Committee and a Portfolio Performance and Service Review Committee (the "Performance Committee"). The Audit Committee is comprised of George M. Constantinides, Roger G. Ibbotson and Abbie J. Smith. Each member of the Audit Committee is a disinterested Director. The Audit Committee oversees the Fund's accounting and financial reporting policies and practices, the Fund's internal controls, the Fund's financial statements and the independent audits thereof and performs other oversight functions as requested by the Board of Trustee's/Directors. The Audit Committee recommends the appointment of each Fund's independent registered certified public accountanting firm and also acts as a liaison between the Fund's independent registered certified public accountanting firm and the full Board. There were four Audit Committee meetings held during the fiscal year ended November 30, 2004. The Performance Committee is comprised of Messrs. Constantinides and Ibbotson, Ms. Smith, John R. Gould, Myron S. Scholes and Robert C. Merton. Each member of the Fund's Performance Committee is a disinterested Director. The Performance Committee regularly reviews and monitors the investment performance of the Fund's series and reviews the performance of the Fund's service providers. There were three Performance Committee meetings held during the fiscal year ended November 30, 2004. Certain biographical information for each disinterested Trustee/Director and each interested Trustee/Director of the Funds is set forth in the tables below, including a description of each Trustee/Director's experience as a Trustee/Director of the Funds and as a director or trustee of other funds, as well as other recent professional experience. The statements of additional information (together, "SAI") of the Funds include additional information about each Trustee/Director. You may obtain copies of the SAI and prospectus of each Fund advised by Dimensional Fund Advisors Inc. by calling collect (310) 395-8005 or by mailing a request to Dimensional Fund Advisors, Inc. 1299 Ocean Avenue, 11th Floor, Santa Monica, California 90401. Prospectuses are also available at www.dfafunds.com.
NAME, AGE, POSITION PORTFOLIOS WITHIN THE WITH THE FUND TERM OF OFFICE(1) AND DFA FUND COMPLEX(2) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND AND ADDRESS LENGTH OF SERVICE OVERSEEN OTHER DIRECTORSHIPS OF PUBLIC COMPANIES HELD --------------------------------------------------------------------------------------------------------------------------- DISINTERESTED TRUSTEES/DIRECTORS George M. Constantinides DFAITC - since 1993 75 portfolios in 4 Leo Melamed Professor of Finance, Graduate School Director of DFAIDG, DIG DFAIDG - since 1983 investment companies of Business, University of Chicago. and DEM. DIG - since 1993 Trustee of DFAITC. DEM - since 1993 1101 E.58th Street Chicago, IL 60637 Date of Birth: 9/22/47 John P. Gould Director of DFAITC - since 1993 75 portfolios in 4 Steven G. Rothmeier Distinguished Service DFAIDG, DIG and DEM. DFAIDG - since 1986 investment companies Professor of Economics, Graduate School of Trustee of DFAITC. DIG - since 1993 Business, University of Chicago. Senior 1101 E.58th Street DEM - since 1993 Vice-President, Lexecon Inc. (economics, law, Chicago, IL 60637 strategy and finance consulting). Formerly, Date of Birth: 1/19/39 President, Cardean University (division of UNext.com). Member of the Boards of Milwaukee Mutual Insurance Company and UNext.com. Formerly, Trustee, First Prairie Funds (registered investment company). Trustee, Harbor Fund (registered investment company) (13 Portfolios).
31
NAME, AGE, POSITION PORTFOLIOS WITHIN THE WITH THE FUND TERM OF OFFICE(1) AND DFA FUND COMPLEX(2) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND AND ADDRESS LENGTH OF SERVICE OVERSEEN OTHER DIRECTORSHIPS OF PUBLIC COMPANIES HELD ---------------------------------------------------------------------------------------------------------------------------- Roger G. Ibbotson DFAITC - since 1993 75 portfolios in 4 Professor in Practice of Finance, Yale School of Director of DFAIDG, DIG DFAIDG - since 1981 investment companies Management. Director, BIRR Portfolio Analysis, and DEM. DIG - since 1993 Inc. (software products). Chairman, Ibbotson Trustee of DFAITC. DEM - since 1993 Associates, Inc., Chicago, IL (software, data, Yale School of Management publishing and consulting). Partner, Zebra Capital P.O. Box 208200 Management, LLC (hedge fund manager). Formerly, New Haven, CT Director, Hospital Fund, Inc. (investment 06520-8200 management services). Date of Birth: 5/27/43 Robert C. Merton DFA ITC - since 2003 75 portfolios in 4 John and Natty McArthur University Professor, Director of DFAIDG, DIG DFA IDG - since 2003 investment companies Graduate School of Business Administration, and DEM. DFA DIG - since 2003 Harvard University (since 1998). George Fisher Trustee of DFAITC. DEM - since 2003 Baker Professor of Business Administration, Harvard Business School Graduate School of Business Administration, 397 Morgan Hall Harvard University (1988-1998), Co-founder, Chief Soldiers Field Science Officer, Integrated Finance Limited (since Boston, MA 02163 2002). Director, MF Risk, Inc. (risk managemetnt Date of Birth: 7/31/44 software) (since 2001). Director, Peninsula Banking Group (bank) (since 2003). Director, Community First Financial Group (bank holding company) (since 2003). Formerly, Co-Founder and Principal, Long-Term Capital Management. Director, Vical Incorporated (biopharamceutical product development). Myron S. Scholes DFAITC - since 1993 75 portfolios in 4 Frank E. Buck Professor Emeritus of Finance, Director of DFAIDG, DIG DFAIDG - since 1981 investment companies Stanford University. Managing Partner, Oak Hill and DEM. DIG - since 1993 Capital Management (private equity firm). Chairman, Trustee of DFAITC. DEM - since 1993 Oak Hill Platinum Partners (hedge fund). Director, Oak Hill Capital Chicago Mercantile Exchange. Consultant, Arbor Management, Inc. Investors. Formerly, Director, Smith Breeden 2775 Sand Hill Rd. Family of Funds. Director, American Century Fund Suite 220 Complex (registered investment companies) (38 Menlo Park, CA 94025 Portfolios); and Director, Chicago Mercantile Date of Birth: 7/01/41 Exchange Holdings Inc.. Abbie J. Smith DFAITC - since 2000 75 portfolios in 4 Boris and Irene Stern Professor of Accounting, Director of DFAIDG, DIG DFAIDG - since 2000 investment companies Graduate School of Business, University of and DEM. DIG - since 2000 Chicago, Formerly, Marvin Bower Fellow, Harvard Trustee of DFAITC. DEM - since 2000 Business School (9/01 to 8/02). Director, HON Graduate School of Business Industries Inc. (office furniture) and Director, University of Chicago Ryder System Inc. (transportation). 1101 East 58th Street, Chicago, IL 60637 Date of Birth: 4/30/53 INTERESTED TRUSTEES/DIRECTORS** David G. Booth DFAITC - since 1993 75 portfolios in 4 Chairman, Director, Chief Executive Officer, Chief Chairman, Director, Chief DFAIDG - since 1981 investment companies Investment Officer and President of Dimensional Executive Officer, Chief DIG - since 1992 Fund Advisors Inc., DFA Securities Inc., DFAIDG, Investment Officer and DEM - since 1993 DIG and DEM. Chairman, Trustee, Chief Executive President of DFAIDG, DIG Officer, Chief Investment Officer and President of and DEM. Chairman, DFAITC. Director of Dimensional Fund Advisors Ltd. Trustee, Chief Executive and formerly Chief Investment Officer. Director, Officer, Chief Investment Chief Investment Officer and President of DFA Officer and President of Australia Ltd. Formerly, Director of Dimensional DFAITC. Funds PLC. Chairman, Director, Chief Executive 1299 Ocean Avenue Officer and Chief Investment Officer of Santa Monica, CA 90401 Dimensional Fund Advisors Canada Inc. (All Chief Date of Birth: 12/02/46 Investment Officer positions held starting 1/1/2003 except for Dimensional Fund Advisors Canada Inc., which was from 6/17/2003.) Limited Partner, Oak Hill Partners. Director, University of Chicago Business School. Formerly, Director, SA Funds (registered investment company). Formerly Director, Assented Corporation (investment management) (until 2002).
32
NAME, AGE, POSITION PORTFOLIOS WITHIN THE WITH THE FUND TERM OF OFFICE(1) AND DFA FUND COMPLEX(2) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND AND ADDRESS LENGTH OF SERVICE OVERSEEN OTHER DIRECTORSHIPS OF PUBLIC COMPANIES HELD ---------------------------------------------------------------------------------------------------------------------------- Rex A. Sinquefield* DFAITC - since 1993 75 portfolios in 4 Chairman and Director (and prior to 1/1/2003, Chairman and Director of DFAIDG - since 1981 investment companies Chief Investment Officer) of Dimensional Fund DFAIDG, DIG and DEM. DIG - since 1992 Advisors Inc., DFA Securities Inc., DFAIDG, DIG Trustee and Chairman of DEM - since 1993 and DEM. Chairman, Trustee (and prior to 1/1/2003, DFAITC. Chief Investment Officer) of DFAITC. Director and 1299 Ocean Avenue formerly President of Dimensional Fund Advisors Santa Monica, CA 90401 Ltd. Director (and prior to 1/1/2003, Chief Date of Birth: 9/07/44 Investment Officer) of DFA Australia Ltd. Director of Dimensional Funds PLC and Dimensional Fund Advisors Canada Inc. Trustee, St. Louis University. Life Trustee and Member of Investment Committee, DePaul University. Director, The German St. Vincent Orphan Home. Member of Investment Committee, Archdiocese of St. Louis.
(1) Each Trustee/Director holds office for an indefinite term until his or her successor is elected and qualified. (2) Each Trustee/Director is a director or trustee of each of the four registered investment companies within the DFA Fund Complex, which includes the Funds. * Rex A. Sinquefield and Jeanne C. Sinquefield are husband and wife. ** Interested Directors are described as such because they are deemed to be "interested persons," as that term is defined under the Investment Company Act of 1940, as amended, due to their positions with Dimensional Fund Advisors Inc. OFFICERS The name, age, information regarding positions with the Funds and the principal occupation for each officer of the Funds are set forth below. Each officer listed below holds the same office (except as otherwise noted) in the following entities: Dimensional Fund Advisors Inc. ("Dimensional"), DFA Securities Inc., DFAIDG, DIG, DFAITC and DEM (collectively, the "DFA Entities"). The address of each officer is: Dimensional Fund Advisors Inc. 1299 Ocean Avenue, 11th Floor, Santa Monica, California 90401, unless otherwise indicated.
TERM OF OFFICE(1) NAME, AGE, POSITION WITH THE FUND AND LENGTH OF AND ADDRESS SERVICE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS -------------------------------------------------------------------------------------------------------- OFFICERS Arthur H. Barlow Since 1993 Vice President of all the DFA Entities. Formerly, Vice President Vice President of DFA Australia Limited and Date of Birth: 11/7/55 Dimensional Fund Advisors Ltd. Valerie A. Brown Since 2001 Vice President and Assistant Secretary of all the Vice President and Assistant DFA Entities, DFA Australia Limited, Dimensional Secretary Fund Advisors Ltd., and since June 2003, Date of Birth: 1/24/67 Dimensional Fund Advisors Canada Inc. Prior to April 2001, legal counsel for Dimensional (since March 2000). Associate, Jones, Day, Reavis & Pogue from October 1991 to February 2000. Stephen A. Clark Since 2004 Vice President of all the DFA Entities. April 2001 Vice President to April 2004, Portfolio Manager of Dimensional. Date of Birth: 8/20/72 Formerly, Graduate Student at the University of Chicago (Septempter 2000 to March 2001); and Associate of US Bancorp Piper Jaffrey (September 1999 to Spetember 2000). Truman A. Clark Since 1996 Vice President of all the DFA Entities. Formerly, Vice President Vice President of DFA Australia Limited and Date of Birth: 4/8/41 Dimensional Fund Advisors Ltd. Christopher S. Crossan Since 2004 Vice President of all the DFA Entities. Formerly, Vice President Senior Compliance Officer, INVESCO Institutional, Date of Birth: 12/21/65 Inc. and its affiliates (August 2000 to January 2004); Brach Chief, Investment Company and Invesment Advisor Inspections, Securities and Exchange Commission (April 1994 to August 2000).
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TERM OF OFFICE(1) NAME, AGE, POSITION WITH THE FUND AND LENGTH OF AND ADDRESS SERVICE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS -------------------------------------------------------------------------------------------------------- James L. Davis Since 1999 Vice President of all the DFA Entities. Formerly, Vice President Vice President of DFA Australia Limited and Date of Birth: 11/29/56 Dimensional Fund Advisors Ltd. Formerly at Kansas State University, Arthur Andersen & Co., and Phillips Petroleum Co. Robert T. Deere Since 1994 Vice President of all the DFA Entities and DFA Vice President Australia Limited. Formerly, Vice President of Date of Birth: 10/8/57 Dimensional Fund Advisors Ltd. Robert W. Dintzner Since 2001 Vice President of all the DFA Entities. Formerly, Vice President Vice President of DFA Australia Limited. Prior to Date of Birth: 3/18/70 April 2001, marketing supervisor and marketing coordinator for Dimensional. Richard A. Eustice Since 1998 Vice President and Assistant Secretary of all the Vice President and Assistant DFA Entities and DFA Australia Limited. Formerly, Secretary Vice President of Dimensional Fund Advisors Ltd. Date of Birth: 8/5/65 Eugene F. Fama, Jr. Since 1993 Vice President of all the DFA Entities. Formerly, Vice President Vice President of DFA Australia Limited and Date of Birth: 1/21/61 Dimensional Fund Advisors Ltd. Robert M. Fezekas Since 2001 Vice President of all the DFA Entities. Prior to Vice President December 2001, Portfolio Manager of Dimensional. Date of Birth: 10/28/70 Damon S. Fisher Since 2004 Vice President of all DFA Entities. Prior to Vice President April 2004, institutional client service Date of Birth: 8/2/68 representative of Dimensional. Gretchen A. Flicker Since 2004 Vice President of all DFA Entities. Prior to Vice President April 2004, institutional client service Date of Birth: 6/9/71 representative of Dimensional. Glenn S. Freed Since 2001 Vice President of all the DFA Entities. Formerly, Vice President Professor and Associate Dean of the Leventhal Date of Birth: 11/24/61 School of Accounting (September 1998 to August 2001) and Academic Director Master of Business Taxation Program (June 1996 to August 2001) at the University of Southern California Marshall School of Business. Henry F. Gray Since 2000 Vice President of all the DFA Entities. Formerly, Vice President Vice President of DFA Australia Limited. Prior to Date of Birth: 9/22/67 July 2000, Portfolio Manager. Kamyab Hashemi-Nejad Since 1997 Vice President, Controller and Assistant Treasurer Vice President, Controller and of all the DFA Entities, DFA Australia Limited, Assistant Treasurer and Dimensional Fund Advisors Ltd. Formerly, Date of Birth: 1/22/61 Assistant Secretary of Dimensional Fund Advisors Ltd.. Christine W. Ho Since 2004 Vice President of all DFA Entities. Prior to Vice President April 2004, Assistant Controller of Dimensional. Date of Birth: 11/29/1967 Jeff J. Jeon Since 2004 Vice President of all DFA Entities. Prior to Vice President April 2004, counsel of Dimensional. Formerly, an Date of Birth: 11/8/73 Associate at Gibson, Dunn & Crutcher LLP (September 1997 to August 2001). Patrick Keating Since 2003 Vice President of all the DFA Entities and Vice President Dimensional Fund Advisors Canada Inc. Formerly, Date of Birth: 12/21/54 Director, President and Chief Executive Officer, Assante Asset Management, Inc. (October 2000 to December 2002); Director, Assante Capital Management (October 2000 to December 2002); President and Chief Executive Officer, Assante Capital Management (October 2000 to April 2001); Executive Vice President, Assante Corporation (May 2001 to December 2002); Director, Assante Asset Management Ltd. (September 1997 to December 2002); President and Chief Executive Officer, Assante Asset Management Ltd. (September 1998 to May 2001); Executive Vice President, Loring Ward (financial services company) (January 1996 to September 1998).
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TERM OF OFFICE(1) NAME, AGE, POSITION WITH THE FUND AND LENGTH OF AND ADDRESS SERVICE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS -------------------------------------------------------------------------------------------------------- Joseph F. Kolerich Since 2004 Vice President of all the DFA Entities. From Vice President April 2001 to April 2004, Portfolio Manager for Date of Birth: 11/7/71 Dimensional. Formerly, a trader at Lincoln Capital Fixed Income Management (formerly Lincoln Capital Management Company). Heather H. Mathews Since 2004 Vice President of all the DFA Entities. Prior to Vice President April 2004, Portfolio Manager for Dimensional Fund Date of Birth: 12/12/69 Advisors Inc. Formerly, Graduate Student at Harvard University (August 1998 to June 2000). David M. New Since 2003 Vice President of all the DFA Entities. Formerly, Vice President Client Service Manager of Dimensional. Formerly, Date of Birth: 2/9/60 Director of Research, Wurts and Associates (investment consulting firm) (December 2000 to June 2002); and President, Kobe Investment Research (August 1999 to November 2000). Catherine L. Newell Vice President Vice President and Secretary of all the DFA Vice President and Secretary since 1997 Entities. Vice President and Assistant Secretary Date of Birth: 5/7/64 and Secretary of DFA Australia Limited (since February 2002, since 2000 April 1997 and May 2002, respectively). Vice President and Secretary of Dimensional Fund Advisors Canada Inc. (since June 2003). Director, Dimensional Funds plc (since January 2002). Formerly, Assistant Secretary of all DFA Entities and Dimensional Fund Advisors Ltd. David A. Plecha Since 1993 Vice President of all the DFA Entities, DFA Vice President Australia Limited and Dimensional Fund Advisors Date of Birth: 10/26/61 Ltd.. Edwardo A. Repetto Since 2002 Vice President of all the DFA Entities. Formerly, Vice President Research Associate for Dimensional (June 2000 to Date of Birth: 1/28/67 April 2002). Formerly, Research Scientist (August 1998 to June 2000), California Institute of Technology. Michael T. Scardina Since 1993 Vice President, Chief Financial Officer and Vice President, Chief Financial Treasurer of all the DFA Entities, DFA Australia Officer and Treasurer Limited and Dimensional Fund Advisors Ltd., and Date of Birth: 10/12/55 since June 2003, Dimensional Fund Advisors Canada Inc. Director, Dimensional Fund Advisors Ltd. (since February 2002) and Dimensional Funds, plc (January 2002). David E. Schneider Since 2001 Vice President of all the DFA Entities. Prior to Vice President 2001, Regional Director of Dimensional. Santa Monica, CA Date of Birth: 1/26/46 John C. Siciliano Since 2001 Vice President of all the DFA Entities. Director Vice President of Dimensional Fund Advisors, Ltd. Formerly, Vice Santa Monica, CA President of DFA Australia Limited. Formerly, Date of Birth: 8/24/54 Director of Dimensional Funds plc. Formerly, Managing Principal, Payden & Rygel Investment Counsel (April 1998 to December 2000). Jeanne C. Sinquefield, Ph.D.* Since 1988 Executive Vice President of all the DFA Entities Executive Vice President and DFA Australia Limited. Vice President Santa Monica, CA (formerly, Executive Vice President) of Dimensional Date of Birth: 12/2/46 Fund Advisors Ltd. (since January 2003) and Dimensional Fund Advisor Canada Inc. (since June 2003). Grady M. Smith Since 2004 Vice President of all the DFA Entities. Prior to Vice President April 2004, Portfolio Manager of Dimensional. Date of Birth: 5/26/56 Formerly, Principal of William M. Mercer, Incorporated (July 1995 to June 2001). Carl G. Snyder Since 2000 Vice President of all the DFA Entities. Prior to Vice President July 2000, Portfolio Manager of Dimensional. Santa Monica, CA Formerly, Vice President of DFA Australia Limited. Date of Birth: 6/8/63 Lawrence R. Spieth Since 2004 Vice President of all the DFA Entities. Prior to Vice President April 2004, institutional client service Date of Birth: 11/10/47 representative of Dimensional.
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TERM OF OFFICE(1) NAME, AGE, POSITION WITH THE FUND AND LENGTH OF AND ADDRESS SERVICE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS -------------------------------------------------------------------------------------------------------- Bradley G. Steiman Since 2004 Vice President of all the DFA Entities and Vice President Dimensional Fund Advisors Canada Inc. (since Date of Birth: 3/25/73 June 2003). Prior to April 2002, Regional Director of Dimensional. Formerly, Vice President and General Manager of Assante Global Advisors (July 2000 to April 2002); Vice President of Assante Asset Management Inc. (March 2000 to July 2000); and Private Client Manager at Loring Ward Investment Counsel Ltd. (June 1997 to February 2002). Karen E. Umland Since 1997 Vice President of all the DFA Entities, DFA Vice President Australia Limited, Dimensional Fund Advisors Ltd., Santa Monica, CA and since June 2003, Dimensional Fund Advisors Date of Birth: 3/10/66 Canada Inc. Carol W. Wardlaw Since 2004 Vice President of all the DFA Entities. Prior to Vice President April 2004, institutional client service Date of Birth: 8/7/58 representative of Dimensional. Weston J. Wellington Since 1997 Vice President of all the DFA Entities. Formerly, Vice President Vice President of Dimensional Fund Advisors Ltd. Santa Monica, CA Date of Birth: 3/1/51 Daniel M. Wheeler Since 2001 Vice President of all the DFA Entities. Prior to Vice President 2001, Director of Financial Advisors Services of Santa Monica, CA Dimensional. Director of Dimensional Fund Advisors Date of Birth: 3/3/45 Ltd. (since October 2003) and President of Dimensional Fund Advisors Canada Inc. (since June 2003).
(1) Each officer holds office for an indefinite term at the pleasure of the Boards of Trustee/Directors and until his or her successor is elected and qualified. * Rex A. Sinquefield and Jeanne C. Sinquefield are husband and wife. 36 VOTING PROXIES ON FUND PORTFOLIO SECURITIES A description of the policies and procedures that the Fund uses in voting proxies relating to securities held in the portfolio is available without charge, upon request, by calling collect: (310) 395-8005. Information regarding how the Advisor votes these proxies is available from the EDGAR database on the SEC's website at http://www.sec.gov and from the Advisor's website at http://www.dfaus.com and reflects the twelve-month period beginning July 1, 2003 and ending June 30, 2004. 37 ITEM 2. CODE OF ETHICS. The Registrant has adopted, as of the end of the period covered by this Form N-CSR (the "Report"), a code of ethics that applies to the Registrant's principal executive officer and principal financial officer (the "Code of Business Ethics"). The Registrant has not made any substantive amendments to the Code of Business Ethics during the period covered by this Report. The Registrant also has not granted any waiver from any provisions of the Code of Business Ethics during the period covered by this Report. A copy of the Code of Business Ethics is filed as an exhibit to this Report. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The Registrant's Board of Directors has determined that Abbie J. Smith possesses the technical attributes to qualify as an "audit committee financial expert" serving on the Registrant's Audit Committee and has designated Ms. Smith as the "audit committee financial expert." Ms. Smith earned a Ph.D. in Accounting, and has taught Accounting at the graduate level since 1980. Ms. Smith's education and career have provided her with an understanding of generally accepted accounting principles and financial statements; the ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves; and experience preparing, analyzing and evaluating financial statements that present a breadth and level of complexity of issues that can reasonably be expected to be raised by the Registrant's financial statements. In addition, Ms. Smith has served on the boards of directors and audit committees of entities other than the Registrant. Ms. Smith is independent under the standards set forth in Item 3 of Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Audit Fees Fiscal Year Ended November 30, 2004: $20,942 Fiscal Year Ended November 30, 2003: $18,792 (b) Audit-Related Fees Fees for Registrant- Fiscal Year Ended November 30, 2004: $ 2,640 Fiscal Year Ended November 30, 2003: $ 2,580
Audited-Related Fees included, for the fiscal year ended November 30, 2004, fees for services related to limited procedures performed in connection with the production of the Registrant's semi-annual financial statements, and, for fiscal year ended November 30, 2003, fees for services related to limited procedures performed in connection with the production of the Registrant's semi-annual financial statements and for consents issued in connection with post-effective amendments to the Registrant's registration statement. There were no Audit-Related Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated above. (c) Tax Fees Fees for Registrant - Fiscal Year Ended November 30, 2004: $ 1,100 Fiscal Year Ended November 30, 2003: $ 960
In the fiscal years ended November 30, 2004 and November 30, 2003, Tax Fees included services in connection with the Registrant's excise tax calculations and review of the Registrant's tax returns. There were no Tax Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated above. (d) All Other Fees Fees for Registrant - Fiscal Year Ended November 30, 2004: $ 0 Fiscal Year Ended November 30, 2003: $ 0
There were no "All Other Fees" required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated above. (e) (1) Audit Committee's Pre-Approval Policies and Procedures Pre-Approval Policies and Procedures as adopted by the Audit Committees of DFA Investment Dimensions Group Inc. Dimensional Emerging Markets Value Fund Inc. Dimensional Investment Group Inc. The DFA Investment Trust Company (together, the "Funds") The Sarbanes-Oxley Act of 2002 (the "Act") and the rules (the "Rules") adopted by the U.S. Securities and Exchange Commission (the "SEC") require that the Funds' Audit Committees (together, the "Committee") pre-approve all audit services and non-audit services provided to the Funds by their independent auditors (the "Auditor"). The Act and the Rules also require that the Committee pre-approve all non-audit services provided by the Auditor to Dimensional Fund Advisors, Inc. ("Dimensional"), the Funds' investment advisor, and to affiliates of Dimensional that provide ongoing services to the Funds (with Dimensional, together the "Service Affiliates") if the services directly impact the Funds' operations and financial reporting. The following policies and procedures govern the ways in which the Committee will pre-approve audit and various types of non-audit services that the Auditor provides to the Funds and to Service Affiliates. These policies and procedures do not apply in the case of audit services that the Auditor provides to Service Affiliates, nor do they apply to services that an audit firm other than the Auditor provides to such entities. These policies and procedures comply with the requirements for pre-approval, but also provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations. Pre-approval of non-audit services may be achieved through a combination of the procedures described in Sections C and D below. A. General 1. The Committee must pre-approve all audit services and non-audit services that the Auditor provides to the Funds. 2. The Committee must pre-approve any engagement of the Auditor to provide non-audit services to any Service Affiliate during the period of the Auditor's engagement to provide audit services to the Funds, if the non-audit services to the Service Affiliate directly impact the Funds' operations and financial reporting. B. Pre-Approval of Audit Services to the Funds 1. The Committee shall approve the engagement of an auditor to certify the Funds' financial statements for each fiscal year (the "Engagement"). The approval of the Engagement shall not be delegated to a Designated Member (as that term is defined in Section D below). In approving the Engagement, the Committee shall obtain, review and consider sufficient information concerning the proposed Auditor to enable the Committee to make a reasonable evaluation of the Auditor's qualifications and independence. The Committee also shall consider the Auditor's proposed fees for the Engagement, in light of the scope and nature of the audit services that the Funds will receive. 2. The Committee shall report to the Boards of Directors/Trustees of the Funds (together, the "Board") regarding its approval of the Engagement and of the proposed fees for the Engagement, and the basis for such approval. 3. Unless otherwise in accordance with applicable law, the Engagement, in any event, shall require that the Auditor be selected by the vote, cast in person, of a majority of the members of the Board who are not "interested persons" of the Funds (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940) (the "Independent Directors"). C. Pre-Approval of Non-Audit Services to the Funds and to Service Affiliates--by Types of Services 1. The Committee may pre-approve types of non-audit services to the Funds and their Service Affiliates pursuant to this Section C. 2. Annually, at such time as the Committee considers the Engagement of the Auditor, management of the Funds, in consultation with the Auditor, shall provide to the Committee, for its consideration and action, the following: (a) a list of those types of non-audit services, if any, that the Funds may request from the Auditor during the fiscal year; and (b) a list of those types of non-audit services directly impacting the Funds' operations and financial reporting that Service Affiliates may request from the Auditor during the fiscal year. 3. The lists submitted to the Committee shall describe the types of non-audit services in reasonable detail and shall include an estimated budget (or budgeted range) of fees, where possible, and such other information as the Committee may request. 4. The Committee's pre-approval of the types of non-audit services submitted pursuant to this Section C shall constitute authorization for management of the Funds to utilize the Auditor for the types of non-audit services so pre-approved, if needed or desired during the fiscal year. 5. A list of the types of non-audit services pre-approved by the Committee pursuant to this Section C will be distributed to management of the Service Affiliates and the appropriate partners of the Auditor. Periodically, the Auditor will discuss with the Committee those non-audit services that have been or are being provided pursuant to this Section C. D. Pre-Approval of Non-Audit Services to the Funds and to Service Affiliates--Project-by-Project Basis 1. The Committee also may pre-approve non-audit services on a project-by-project basis pursuant to this Section D. 2. Management of the Funds, in consultation with the Auditor, may submit either to the Committee or to the Designated Member, as provided in this Section D, for their consideration and action, a pre-approval request identifying one or more non-audit service projects. The request so submitted shall describe the project(s) in reasonable detail and shall include an estimated budget (or budgeted range) of fees and such other information as the Committee or the Designated Member, as appropriate, shall request. 3. The Committee, from time to time, shall designate one or more of its members who are Independent Directors (each a "Designated Member") to consider, on the Committee's behalf, any non-audit services, whether to the Funds or to any Service Affiliate, that have not been pre-approved by the Committee. The Designated Member also shall review, on the Committee's behalf, any proposed material change in the nature or extent of any non-audit services previously approved. The Funds' management, in consultation with the Auditor, shall explain why such non-audit services or material change in non-audit services are necessary and appropriate and the anticipated costs thereof. 4. The Designated Member will review the requested non-audit services or proposed material change in such services and will either: (a) pre-approve, pre-approve subject to conditions, or disapprove any such requested services, or any proposed material change in services, whether to the Funds or to a Service Affiliate; or (b) refer such matter to the Committee for its consideration and action. In considering any requested non-audit services or proposed material change in such services, the Designated Member's authority shall be limited to approving non-audit services or proposed material changes that do not exceed $10,000 in value. 5. The Designated Member's pre-approval (or pre-approval subject to conditions) of the requested non-audit services or proposed material change in services pursuant to this Section D shall constitute authorization for the management of the Funds or the Service Affiliate, as the case may be, to utilize the Auditor for the non-audit services so pre-approved. Any action by the Designated Member in approving a requested non-audit service shall be presented for ratification by the Committee not later than at its next scheduled meeting. If the Designated Member does not approve the Auditor providing the requested non-audit service, the matter may be presented to the full Committee for its consideration and action. E. Amendment; Annual Review 1. The Committee may amend these procedures from time to time. 2. These procedures shall be reviewed annually by the Committee. F. Recordkeeping 1. The Funds shall maintain a written record of all decisions made by the Committee or by a Designated Member pursuant to these procedures, together with appropriate supporting materials. 2. In connection with the approval of any non-audit service pursuant to the de minimis exception provided in the Rules, a record shall be made indicating that each of the conditions for this exception, as set forth in the Rules, has been satisfied. 3. A copy of these Procedures (and of any amendments to these Procedures) shall be maintained and preserved permanently in an easily accessible place. The written records referred to in paragraphs 1 and 2 of this Section F shall be maintained and preserved for six years from the end of the fiscal year in which the actions recorded were taken, for at least the first two years in an easily accessible location. (e)(2) The fees disclosed in Items 4(b), 4(c) or 4(d) were approved by the Registrant's Audit Committee but not pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) The percentage of hours expended on the principal accountant's engagement to audit the Registrant's financial statements for the fiscal year ended November 30, 2004 that were attributed to work performed by persons other than the principal accountant's full time, permanent employees was NOT greater than 50%. (g) Aggregate Non-Audit Fees Fiscal Year Ended November 30, 2004: $ 164,040 Fiscal Year Ended November 30, 2003: $ 149,540
(h) The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to the Registrant's investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. This item is not applicable to the Registrant because it is not a listed issuer. ITEM 6. SCHEDULE OF INVESTMENTS. Please see schedule of investments contained in the reports to stockholders included under Item 1 of this Report. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. This item is not applicable to the Registrant, which is an open-end management investment company. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANIES. This item is not applicable to the Registrant, which is an open-end management investment company. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. None. ITEM 10. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this Report, the Registrant's Principal Executive Officer and Principal Financial Officer believe that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effectively designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant's officers that are making certifications in the Report, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the Principal Executive Officer and the Principal Financial Officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant's second fiscal quarter of the period covered by this Report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a) Code of Ethics is filed herewith. (b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith. (c) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. Dimensional Emerging Markets Value Fund Inc. By: /s/David G. Booth -------------------------------------- David G. Booth Chairman, Director, President, Chief Executive Officer and Chief Investment Officer Date: February 7, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/David G. Booth -------------------------------------- David G. Booth Principal Executive Officer Dimensional Emerging Markets Value Fund Inc. Date: February 7, 2005 By: /s/ Michael T. Scardina -------------------------------------- Michael T. Scardina Principal Financial Officer Dimensional Emerging Markets Value Fund Inc. Date: February 7, 2005