Semi-annual report 2005 - Morgan Stanleyrecent semi-annual report, if published thereafter. In Switzerland, Bank Morgan Stanley A.G. carries out the functions of Swiss representative

5Morgan Stanley Investment Management

Semi-annual report 2005Morgan Stanley SICAV

Société d’Investissement à Capital Variableincorporated under the laws of Luxembourg

Table of contents

1 Shareholders’ Information

2 Equity Funds

49 Bond Funds

85 Liquidity Funds

89 Asset Allocation Funds

95 Currency Exchange Contracts and Futures Contracts

98 Financial Statements

125 Other Information

Rep

ort

952347-1-007 x-cat 8/22/05 17:51 Page A

952347-1-007 x-cat 8/22/05 17:51 Page i

1 Shareholders’ information

STATEMENT OF INVESTMENTS

Equity Funds

2 Asian Equity Fund

4 Asian Property Fund

6 Emerging Europe and Middle East Equity Fund

8 Emerging Markets Equity Fund

11 European Equity Fund

13 European Property Fund

15 European Small Cap Value Fund

17 European Value Equity Fund

19 Global Brands Fund

20 Global Small Cap Value Fund

23 Global Value Equity Fund

25 Japanese Equity Growth Fund

29 Japanese Value Equity Fund

31 Latin American Equity Fund

33 US Equity Fund

36 US Equity Growth Fund

39 US Property Fund

41 US Small Cap Growth Fund

44 US Value Equity Fund

47 World Equity Fund

Bond Funds

49 Emerging Markets Debt Fund

52 Euro Bond Fund

55 Euro Corporate Bond Fund

58 Euro Strategic Bond Fund

61 European Currencies High Yield Bond Fund

64 Global Bond Fund

68 Global Convertible Bond (Euro) Fund

71 Global Convertible Bond (USD) Fund

74 Short Maturity Euro Bond Fund

76 US Bond Fund

82 US Dollar Short Duration Fund

Liquidity Funds

85 Euro Liquidity Fund

87 US Dollar Liquidity Fund

Asset Allocation Funds

89 Global Diversified (Euro) Fund

92 Global Diversified (USD) Fund

CURRENCY EXCHANGE CONTRACTS AND FUTURES CONTRACTS

95 Open forward foreign currency exchange contracts

97 Open futures contracts

FINANCIAL STATEMENTS

98 Statement of assets and liabilities

103 Statement of changes in number of shares

109 Statement of operations and changes in net assets

115 Statement of share and net assets statistics

120 Notes to the financial statements

OTHER INFORMATION

125 Directors and service providers

126 Paying and information agents

127 Appendix 1: fund expense ratios

Morgan Stanley SICAV 30 June 2005

Table of contents

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1 Morgan Stanley SICAV 30 June 2005

The annual general meeting of shareholders of the Company is held at the registered officeof the Company and will be held on the secondTuesday of the month of May at 10.30 am, orif such day is not a bank business day on thefollowing bank business day.

Notices of all general meetings are sent by mail to all registeredshareholders at their registered address at least 8 days prior to themeeting. Such notices will indicate the time and place of themeeting as well as the conditions of admission thereto. Saidnotices will also contain the agenda and requirements ofLuxembourg law with regard to the necessary quorum andmajorities at the meeting. To the extent required by law, furthernotices will be published in the Mémorial C, Recueil Spécial desSociétés et Associations du Journal Officiel du Grand-Duchy deLuxembourg and in one Luxembourg newspaper.

Audited financial statements to the shareholders in respect of thepreceding financial year are made available at the registered officeof the Company and are sent to holders of registered Shares attheir registered address. In addition, unaudited semi-annualreports are also made available at the registered office.

The Company’s financial year end is 31 December.

Any other notices relevant to the Company are also published in aLuxembourg newspaper or mailed to affected shareholders.

The net asset value per share of each Class of Share is available oneach dealing day during Luxembourg business hours at theregistered office of the Company, and is published daily in severalleading financial newspapers world-wide.

No subscriptions can be received on the basis of financial reports.Subscriptions are only valid if made on the basis of the currentprospectus supplemented by the latest annual report and the mostrecent semi-annual report, if published thereafter.

In Switzerland, Bank Morgan Stanley A.G. carries out thefunctions of Swiss representative of the Company as well as thoseof paying agent. The prospectus, the articles of association, theannual and semi-annual reports of the Company may be obtained,upon request and free of charge, at the Swiss representative’sregistered office, Bank Morgan Stanley A.G., Bahnhofstrasse 92,8023 Zurich, Switzerland.

In Switzerland, the list of the purchases and sales of investmentswhich the Company has undertaken during the financial periodcan be obtained, upon request and free of charge, from the Swissrepresentative, Bank Morgan Stanley A.G., Bahnhofstrasse 92,8023 Zurich, Switzerland.

The investment aims set out in this annual report are summariesonly. The complete investment objectives and policies for eachFund are set out in the Company’s current prospectus.

• SHARE CLASSES OPENED IN THE SIX MONTHS TO 30 JUNE 2005

Classes AX and IX of the Global Bond Fund, Euro Strategic BondFund, US Property Fund, US Bond Fund, Japanese Value EquityFund, US Value Equity Fund, Emerging Markets Equity Fund,European Property Fund, Japanese Equity Growth Fund,Emerging Europe and Middle East Equity Fund and European SmallCap Value Fund were opened for subscriptions on 1 June 2005.

Shareholders’ information

952347-1-007 x-cat 8/22/05 17:51 Page iii

Asian Equity Fund

South KoreaSamsung Electronics 41,639 19,919,301 5.24Hyundai Mobis 124,130 8,354,268 2.18Hankook Tire 664,760 8,046,773 2.10Samsung SDI 54,170 5,093,601 1.33Orion 31,690 4,710,613 1.23Samsung Electronics Pfd 11,100 3,649,300 0.95KT&G 90,640 3,554,854 0.93Shinhan Financial Group 132,210 3,444,002 0.90Hyundai Motor 56,450 3,143,248 0.82Doosan Heavy Industries and Construction 175,650 2,891,638 0.76Daishin Securities Pfd 274,150 2,654,820 0.69SK 43,150 2,289,856 0.60Cheil Industries 139,540 2,256,639 0.59Samsung Fire & Marine Insurance 25,480 2,070,181 0.54STX Shipbuilding 84,860 2,013,335 0.53Pusan Bank 225,000 2,004,551 0.52Hyundai Heavy Industries 39,740 2,001,143 0.52GS Engineering & Construction 43,030 1,420,930 0.37Doosan Infracore 144,610 1,271,543 0.33Handsome 126,380 1,200,589 0.31Korean Air Lines 63,180 1,073,751 0.28Hynix Semiconductor 61,550 1,013,267 0.26S-Oil 12,360 987,459 0.26Kumho Tire GDR 121,420 883,938 0.23Hyundai Motor Pfd 23,230 832,334 0.22Samsung Heavy Industries 89,170 812,560 0.21Daelim Industrial 14,340 769,318 0.20Daishin Securities 53,880 730,470 0.19Hanmi Pharm 10,740 730,110 0.19

Total for South Korea 23.48

Hong KongEsprit Holdings 1,990,000 14,400,625 3.73New World Development 10,016,800 12,306,601 3.22Techtronic Industries 2,826,000 7,143,984 1.87Great Eagle Holdings 2,374,000 5,940,268 1.55Hysan Development 2,728,000 5,667,906 1.48China Mobile (Hong Kong) 1,044,000 3,888,256 1.02Cheung Kong Holdings 371,000 3,615,449 0.95Li & Fung 1,724,000 3,581,917 0.94Hutchison Whampoa 396,000 3,578,881 0.94Sun Hung Kai Properties 361,000 3,564,440 0.93Henderson Land Development 648,000 3,101,157 0.81Swire Pacific ‘A’ 302,000 2,671,071 0.70TPV Technology 2,955,000 1,981,515 0.52Global Bio-Chem Technology Group 2,938,000 1,823,706 0.48Grande Holdings 1,921,000 1,791,724 0.47Lifestyle International Holdings 1,066,500 1,756,211 0.46NWS Holdings 1,108,000 1,610,734 0.42China Travel International Investment 5,132,000 1,551,530 0.41Fountain SET Holdings 2,915,000 1,500,045 0.39GOME Electrical Appliances Holdings 1,576,000 1,358,428 0.36Hopewell Highway Infrastructure 1,099,000 791,756 0.21Luen Thai Holdings 1,800,000 683,125 0.18Moulin Global Eyecare Holdings (1) 2,942,000 0 0.00

Total for Hong Kong 22.04

TaiwanHon Hai Precision Industry 1,436,955 7,470,894 1.93Shin Kong Financial Holding 6,178,397 6,248,695 1.63Asia Optical 762,652 5,290,838 1.38United Microelectronics 6,870,000 4,993,995 1.31Cathay Financial Holding 2,275,000 4,587,389 1.20MediaTek 509,653 4,421,610 1.16Taiwan Semiconductor Manufacturing 2,519,178 4,387,064 1.15Mega Financial Holding 6,229,000 4,104,761 1.07

IA B

0

1

2

3

4

5

64.62% 4.24% 3.74% 5.40%

I

A

B

I A B

Fund (net of expenses) Class I shares

Fund (net of expenses) Class A shares

Fund (net of expenses) Class B shares

MSCI Asia Combined Far East Free ex Japan Index (expressed in US dollars)

CHANGE IN NET ASSET VALUE PER SHAREFor the six months ended 30 June 2005

INVESTMENT AIMS*

To seek long term capital appreciation,measured in US Dollars, through investmentprimarily in the equity securities of companiesdomiciled in or exercising the predominantpart of their economic activity in Asia,excluding Japan, thereby taking advantage of the dynamic economic growth capabilitiesof the region.

STATEMENT OF INVESTMENTSTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 30 June 2005, expressedin US dollars.

Investment Holding

Please refer to the prospectus for a full disclosure of the investment aim.

Morgan Stanley SICAV 30 June 2005 2

* Investment objective changed on 17 May 2005. Prior to that date, the Fund’s investment aimwas: “To seek long-term capital appreciation, measured in US Dollars, through investment in thestock markets of Asia, excluding Japan, thereby taking advantage of the dynamic economicgrowth capabilities of the region.”

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 2


STATEMENT OF INVESTMENTS (continued)Transferable securities admitted to official exchange listing or dealtin on another regulated market. As at 30 June 2005, expressedin US dollars.

Investment Holding

Investment Holding

Taiwan (continued)Catcher Technology 708,200 4,096,100 1.07Chinatrust Financial Holding 2,955,632 3,222,797 0.84Delta Electronics 2,060,835 3,201,329 0.84Ya Hsin Industrial 3,007,436 2,899,077 0.76Taiwan Mobile 1,923,000 1,981,346 0.52Taishin Financial Holdings 2,286,935 1,919,030 0.50Far EasTone Telecommunications 1,494,000 1,912,358 0.50Springsoft 850,811 1,774,764 0.46Tsann Kuen Enterprise 1,263,975 1,741,761 0.46Infortrend Technology 806,830 1,690,671 0.44Largan Precision 251,111 1,650,793 0.43Eva Airways 2,909,358 1,411,462 0.37CTCI 2,351,844 1,293,366 0.34Phoenixtec Power 1,160,765 1,249,180 0.33Cheng Shin Rubber Industry 1,086,064 1,220,277 0.32Vanguard International Semiconductor 1,199,000 1,152,010 0.30Fubon Financial Holding 1,131,000 1,100,973 0.29AU Optronics 586,000 979,753 0.26Polaris Securities 1,950,813 971,091 0.25Fubon Financial Holding GDR Regd 87,054 847,906 0.22Cyberlink 274,846 816,546 0.21Chipbond Technology 619,252 784,829 0.21Kaulin Manufacturing 706,000 714,033 0.19Delta Electronics GDR 84,700 690,305 0.18Acer 322,689 637,423 0.17Radiant Opto-Electronics 191,000 633,850 0.17Hon Hai Precision Industry GDR Regd 53,400 555,360 0.15

Total for Taiwan 21.61

ThailandBangkok Bank Public (F) Regd 1,970,400 4,815,739 1.28PTT (F) 504,000 2,658,730 0.69Advanced Info Service (F) Regd 1,076,700 2,553,336 0.67Siam Commercial Bank (F) Regd 2,265,900 2,549,652 0.67Total Access Communication 775,000 2,480,000 0.65Italian-Thai Development (F) 10,215,000 2,372,995 0.62Kasikornbank (F) 1,529,000 2,034,967 0.53Banpu (F) Regd 452,700 1,632,240 0.43Kasikornbank 985,700 1,311,881 0.34Polyplex (F) 8,047,900 1,187,954 0.31Siam City Bank (F) Regd 1,853,700 1,177,486 0.31True (F) 4,565,000 1,148,845 0.30Asian Property Development 12,767,300 1,118,394 0.29CP Seven Eleven 7,943,000 1,085,976 0.28Thai Oil (F) 653,300 1,003,861 0.26CH. Karnchang 3,637,500 1,003,448 0.26Thai Airways International (F) 1,003,100 964,869 0.25Land & Houses Public (F) Regd 5,566,400 915,947 0.24Dynasty Ceramic (F) 1,754,900 704,933 0.18Sino Thai Engineering & Construction (F) 2,470,300 639,618 0.17Modernform Group (F) 753,300 628,889 0.16Lalin Property (F) 4,874,000 595,613 0.16Krungthai Card (F) 1,092,800 587,058 0.15Ratchaburi Electricity Generating Holding (F) 555,100 544,018 0.14Hemaraj Land and Development (F) 23,968,400 504,598 0.13MBK (F) 358,000 415,826 0.11Union Mosaic (F) 1,525,000 103,327 0.03Sino Thai Engineering & Construction (F)Wts exp. 18/04/2008 411,716 43,040 0.01Modernform Group Wts exp. 30/11/2007 75,330 5,177 0.00

Total for Thailand 9.62

SingaporeOversea-Chinese Banking 742,000 5,107,676 1.34Singapore Airlines 657,000 4,366,614 1.14CapitaLand 2,964,000 4,186,167 1.09Hyflux 1,241,000 3,122,476 0.82

Singapore (continued)City Developments 588,000 2,616,978 0.68SembCorp Industries 1,567,920 2,484,257 0.65Wing Tai Holdings 3,861,666 2,280,128 0.60Venture 221,000 2,098,330 0.55Unisteel Technology 1,118,000 1,127,852 0.29GES International 2,562,000 1,109,848 0.29YHI International 3,950,400 937,697 0.25Suntec Real Estate Investment Trust 1,259,000 911,480 0.24Huan Hsin Holdings 1,369,000 682,408 0.18Brilliant Manufacturing 2,099,000 585,426 0.15Oversea-Chinese Banking - Rts 148,400 568,009 0.15Total Automation 2,224,000 560,900 0.15Asiatravel.com Holdings 3,581,000 467,507 0.12Asiatravel.com Holdings Wts exp. 17/05/2010 895,250 18,594 0.00

Total for Singapore 8.69

ChinaKingboard Chemical Holdings 895,000 2,855,488 0.75China Life Insurance ‘H’ 3,947,000 2,691,216 0.70Asia Aluminum Holdings 16,918,000 2,002,362 0.52Victory City International 4,458,000 1,448,129 0.38Ping An Insurance Group Co of China ‘H’ 1,102,000 1,772,137 0.46Foxconn International Holdings 1,496,000 1,116,260 0.29Yanzhou Coal Mining ‘H’ 1,376,000 1,079,827 0.28Lianhua Supermarket Holdings ‘H’ 876,000 997,363 0.26China Resources Power Holdings 1,790,000 995,967 0.26Air China ‘H’ 2,575,000 869,585 0.23Norstar Founders Group 2,953,000 845,277 0.22Wumart Stores ‘H’ 487,000 783,150 0.20Huadian Power International ‘H’ 2,610,000 738,701 0.19Hainan Meilan International Airport ‘H’ 1,001,000 573,060 0.15China Techfaith Wireless Communication Technology ADR 32,300 539,410 0.14

Total for China 5.03

IndonesiaBank Rakyat Indonesia 8,531,000 2,534,176 0.65PT United Tractors 5,666,200 2,162,007 0.57PT Bank Central Asia 5,805,000 2,140,640 0.56Kawasan Industri Jababeka 91,462,000 1,171,088 0.31PT Bank Internasional Indonesia ‘A’ ‘B’ ‘C’ 63,352,000 1,135,631 0.30PT Gudang Garam 853,500 1,105,944 0.29Ramayana Lestari Sentosa 11,707,500 1,079,309 0.28PT Indocement Tunggal Prakarsa 2,870,500 1,014,415 0.27PT Bumi Resources 10,036,000 853,253 0.22

Total for Indonesia 3.45

MalaysiaYTL 1,231,533 1,733,869 0.45Tenaga Nasional 579,000 1,599,868 0.42SP Setia 1,401,500 1,504,768 0.39Commerce Asset Holdings 814,000 1,081,763 0.28Resorts World 409,000 1,022,500 0.27Magnum 1,547,000 879,347 0.23Tanjong 234,000 806,684 0.21DRB-Hicom 1,952,000 755,116 0.20MK Land Holdings 2,283,000 660,868 0.17IJM 473,000 612,411 0.16Bandar Raya Developments 1,319,000 520,658 0.14Jaks Resources 1,520,000 488,000 0.13Puncak Niaga Holding 679,000 464,579 0.12Road Builder (M) 651,000 407,732 0.11

Total for Malaysia 3.28

Total Investment Securities 371,850,679 97.20

Total NAV 382,566,058 100.00

(1) This security is valued at its fair market value. See note 2(a).

Asian Equity Fund

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 3

Asian Property Fund


Hong KongSun Hung Kai Properties 2,744,000 27,093,695 9.50Henderson Land Development 2,765,000 13,232,558 4.63Wharf (Holdings) 3,320,000 11,660,213 4.08New World Development 9,141,695 11,231,450 3.93Hong Kong Land Holdings 3,890,000 10,853,100 3.80Cheung Kong Holdings 716,000 6,977,525 2.44Swire Pacific ‘A’ 548,000 4,846,844 1.70Kerry Properties 1,640,778 3,651,755 1.28Hang Lung Properties 2,027,000 2,985,829 1.05Hysan Development 1,333,965 2,771,550 0.97Miramar Hotel & Investment 1,492,000 2,293,731 0.80Chinese Estates Holdings 2,476,000 2,197,888 0.77


JapanMitsubishi Estate 2,137,000 23,571,769 8.26Mitsui Fudosan 1,099,000 12,360,585 4.33Sumitomo Realty & Development 727,000 8,170,089 2.87NTT Urban Development 1,695 6,967,117 2.44Nippon Building Fund 478 4,318,172 1.51Japan Real Estate Investment 505 4,297,484 1.50Tokyu Land 722,000 3,411,229 1.19Japan Retail Fund Investment 397 3,410,696 1.19Aeon Mall 79,000 2,790,460 0.98Nomura Real Estate Office Fund 320 2,434,076 0.85Tokyu REIT 237 1,723,520 0.60Frontier Real Estate Investment 140 918,199 0.32Daibiru 3,000 21,790 0.01

Total for Japan 26.05

AustraliaWestfield Group 1,992,734 26,863,302 9.41Stockland 1,904,081 7,986,950 2.80GPT 2,438,290 6,762,926 2.36Macquarie Goodman Group 1,892,296 5,866,859 2.04DB RREEF Trust 4,765,307 4,942,879 1.73Mirvac Group 1,806,750 4,901,429 1.72Centro Properties Group 996,910 4,461,981 1.56CFS Gandel Retail Trust 2,642,917 3,363,991 1.18Macquarie CountryWide Trust 1,846,675 2,687,297 0.94Investa Property Group 1,774,083 2,615,364 0.92ING Industrial Fund 734,204 1,166,056 0.41Westfield Group 38,465 517,363 0.18Stockland 32,867 139,614 0.05CFS Gandel Retail Trust 34,878 43,996 0.02

Total for Australia 25.32

SingaporeUnited Overseas Land 2,287,000 3,094,300 1.09CapitaLand 2,150,000 3,036,525 1.07Suntec Real Estate Investment Trust 3,406,000 2,465,846 0.86Singapore Land 605,000 2,028,454 0.71Ascendas Real Estate Investment Trust 1,119,000 1,467,519 0.51CapitaMall Trust 860,000 1,214,610 0.43United Industrial 1,945,000 1,148,429 0.40Fortune Real Estate Investment Trust 1,226,000 1,001,544 0.35Keppel Land 644,000 955,405 0.33Wheelock Properties 487,000 809,186 0.28City Developments Wts exp. 10/05/2006 189,000 566,389 0.20Wing Tai Holdings 735,000 433,982 0.15CapitaCommercial Trust 202,600 181,542 0.06


IA B

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5(1.61)% (1.88)% (2.41)% 0.09%

I

A

B

I A B




GPR - General Real Estate Securities Index - Far East(expressed in US dollars)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in US Dollars, through investmentin the equity securities of companies in theAsian real estate industry.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 4

Asian Property Fund



Investment Holding

MalaysiaIGB 6,756,000 1,991,241 0.71KrisAssets Holdings (1) 360,094 263,437 0.09DRB-Hicom 602,000 232,879 0.08Sunway City 350,000 170,395 0.06


ThailandLand & Houses Public (F) Regd 9,184,000 1,511,221 0.53



Total NAV 285,573,251 100.00


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 5



TurkeyEfes Sinai Yatrim Holding ‘B’ 959,362 5,343,736 3.30Adana Cimento 1,601,049 5,202,163 3.21Turk Hava Yollari 1,092,132 5,069,398 3.13Boyner Buyuk Magazacilik 2,480,456 4,052,803 2.50Gima 1,869,000 3,030,614 1.87Akcansa Cimento 715,277 2,390,496 1.48Dogan Yayin Holding 1,136,493 2,335,204 1.44Yapi ve Kredi Bankasi 610,507 1,926,996 1.19AFM Uluslararasi Film Produksiyon ve San 805,473 1,525,431 0.94Anadolu Cam Sanayii 458,001 1,502,320 0.93Dogan Burda Rizzoli Dergi Yazincilik ve Pazarlama 578,355 1,431,774 0.88Trakya Cam Sanayi 469,393 1,301,471 0.80Hurriyet Gazetecilik 580,304 1,185,194 0.73TAT Konserve 665,000 1,061,846 0.66Enka Insaat ve Sanayi 110,788 1,028,499 0.63Uzel Makina Sanayii 726,456 939,671 0.58Yapi Kredi Koray Gayrimenkul Yatirim Ortakligi 566,000 840,713 0.52Acibadem Saglik Hizmetleri Ve Ticaret 247,370 676,689 0.42Finans Fin Kirala 83,862 200,342 0.12

Total for Turkey 25.33

Russian FederationWimm-Bill-Dann Foods ADR 578,000 7,730,004 4.76Pyaterochka Holding-GDR 144A 443,466 5,242,785 3.23Efes Breweries International GDR 181,209 5,073,882 3.13Kalina ADR (1) 169,830 4,015,560 2.48Highland Gold Mining 1,118,218 2,861,985 1.77MMC Norilsk Nickel ADR 46,400 2,328,950 1.44Sberbank GDR (1) 25,950 1,424,144 0.88Peter Hambro Mining 108,847 1,060,890 0.65Mobile Telesystems ADR 19,240 527,709 0.33

Total for Russian Federation 18.67

MoroccoONA 85,300 6,930,388 4.28Centrale Laitiere 5,400 3,179,596 1.96Banque Marocaine du Commerce Exterieur 38,559 2,027,528 1.25Brasseries Maroc 8,800 1,269,282 0.78

Total for Morocco 8.27

IsraelCheck Point Software Technologies 350,185 5,714,638 3.54United Mizrahi Bank 504,000 1,742,080 1.07Blue Square-Israel ADR 216,500 1,562,658 0.96Orbotech 77,100 1,375,947 0.85Super-Sol 631,600 1,233,944 0.76Delta-Galil Industries ADR 121,690 654,714 0.40

Total for Israel 7.58

PolandBank Pekao 81,995 2,888,723 1.80Polski Koncern Miesny Duda 818,634 2,357,868 1.45Agora 112,630 1,782,123 1.10Powszechna Kasa Oszczednosci Bank Polski 201,026 1,351,839 0.83Inter Cars 175,680 1,303,009 0.80TVN 53,585 649,147 0.40Telekomunikacja Polska GDR 67,700 339,806 0.21

Total for Poland 6.59

0

5

10

15

20

25

3028.19% 27.80% 27.43% 19.38%

I

A

B

I A B




MSCI Emerging Europe and Middle East Index(expressed in Euro)

0

5

10

15

20

25

304.73% 4.69% 19.38%

IX

AX

B

IX AX

Fund (net of expenses) Class IX shares

Fund (net of expenses) Class AX shares

MSCI Emerging Europe and Middle East Index(expressed in Euro)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in Euro, by investing primarily inequity securities of issuers in Central, Easternand Southern Europe (including the RussianFederation) as well as the Middle East.

STATEMENT OF INVESTMENTSTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 30 June 2005, expressedin Euro.

Investment Holding

Emerging Europe & Middle East Equity Fund

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 6


STATEMENT OF INVESTMENTS (continued)Transferable securities admitted to official exchange listing or dealtin on another regulated market. As at 30 June 2005, expressedin Euro.

Investment Holding

EgyptEastern Tobacco 144,351 4,262,681 2.63ASEC Cement 530,600 2,017,903 1.25MobiNil - Egyptian Mobile Services 48,007 1,252,552 0.77

Total for Egypt 4.65

JordaniaArab Potash 402,773 6,126,989 3.78Nutri Dar 314,054 1,103,324 0.68

Total for Jordania 4.46

TunisiaBanque Internationale Arabe du Tunisie 432,420 7,136,625 4.40

Total for Tunisia 4.40

LebanonSolidere GDR 386,309 4,528,599 2.79Banque Audi GDR 75,000 2,302,236 1.42

Total for Lebanon 4.21

OmanSalalah Port Services 263,600 2,749,267 1.69Alliance Housing Bank 242,800 2,066,674 1.28

Total for Oman 2.97

LebanonBanque Audi-GDR RegS 155,500 4,773,302 2.95

Total for Lebanon 2.95

HungaryFotex 3,772,718 4,713,728 2.91

Total for Hungary 2.91

UzbekistanOxus Gold 2,637,151 1,856,131 1.15

Total for Uzbekistan 1.15

UkraineStirol Concern ADR 7,950 461,895 0.29Ukrnafta Oil ADR 1,550 262,725 0.16

Total for Ukraine 0.45

Czech RepublicZentiva 20,200 601,933 0.37

Total for Czech Republic 0.37


Total NAV 162,067,324 100.00


Emerging Europe & Middle East Equity Fund

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 7


Emerging Markets Equity Fund

South KoreaSamsung Electronics 17,402 8,324,784 1.99Hyundai Mobis 54,710 3,682,124 0.88Hankook Tire 277,780 3,362,466 0.81Shinhan Financial Group 109,740 2,858,670 0.69KT&G 71,700 2,812,037 0.67GS Engineering & Construction 83,530 2,758,314 0.66Orion 18,015 2,677,870 0.64Samsung SDI 27,954 2,628,512 0.63Samsung Electronics Pfd 7,711 2,535,113 0.61Hyundai Motor 36,420 2,027,938 0.49Doosan Heavy Industries and Construction 110,340 1,816,472 0.44STX Shipbuilding 66,980 1,589,125 0.38Cheil Industries 90,520 1,463,888 0.35S-Oil 13,540 1,081,731 0.26Hynix Semiconductor 65,090 1,071,544 0.26Korean Air Lines 58,470 993,704 0.24Hyundai Heavy Industries 19,200 966,833 0.23SK 17,980 954,151 0.23Samsung Heavy Industries 98,280 895,574 0.21Korea Electric Power 28,950 888,699 0.21Pusan Bank 96,420 859,017 0.21Samsung Fire & Marine Insurance 9,620 781,599 0.19Handsome 77,810 739,182 0.18Hyundai Motor Pfd 18,460 661,424 0.16Kumho Tire GDR 76,900 559,832 0.13Daishin Securities Pfd 57,160 553,527 0.13Hanmi Pharm 7,750 526,848 0.13Doosan Infracore 58,490 514,297 0.12Daelim Industrial 7,920 424,895 0.10


TaiwanHon Hai Precision Industry 814,467 4,234,508 0.99United Microelectronics 5,615,000 4,081,700 0.98Shin Kong Financial Holding 4,014,188 4,059,861 0.97Taiwan Semiconductor Manufacturing 1,785,995 3,110,250 0.75Asia Optical 432,625 3,001,302 0.72AU Optronics 1,649,000 2,757,020 0.66Cathay Financial Holding 1,283,000 2,587,086 0.62MediaTek 291,300 2,527,239 0.61Catcher Technology 386,800 2,237,181 0.54Mega Financial Holding 3,267,000 2,152,875 0.52Delta Electronics 1,161,534 1,804,342 0.43Chinatrust Financial Holding 1,638,601 1,786,717 0.43Taiwan Mobile 1,091,000 1,124,102 0.27Far EasTone Telecommunications 855,000 1,094,422 0.26Taishin Financial Holdings 1,299,160 1,090,161 0.26Springsoft 494,487 1,031,484 0.25Tsann Kuen Enterprise 703,245 969,073 0.23Infortrend Technology 462,340 968,810 0.23Largan Precision 145,296 955,170 0.23Eva Airways 1,664,961 807,748 0.19China Steel 784,000 792,920 0.19Delta Electronics GDR 89,700 731,055 0.18Phoenixtec Power 663,510 714,049 0.17CTCI 1,285,438 706,910 0.17Cheng Shin Rubber Industry 621,368 698,155 0.17Radiant Opto-Electronics 205,000 680,310 0.16Polaris Securities 1,077,173 536,203 0.13Cyberlink 159,220 473,030 0.11Formosa Plastics 257,240 421,145 0.10Nan Ya Plastics 279,000 411,357 0.10Kaulin Manufacturing 402,850 407,434 0.10Acer 185,970 367,355 0.09Yang Ming Marine Transport 406,000 362,500 0.09Hon Hai Precision Industry GDR Regd 26,400 274,560 0.07Vanguard International Semiconductor 35,000 33,628 0.01

Total for Taiwan 11.98

0

1

2

3

4

5

65.39% 5.10% 4.67% 6.00%

I

A

B

I A B




MSCI Emerging Markets Free (Net) Index(expressed in US dollars)

0

1

2

3

4

5

63.65% 3.60% 6.00%

IX

AX

IX AX



MSCI Emerging Markets Free (Net) Index (expressed in US dollars)


INVESTMENT AIMS

To seek to maximise total return, measuredin US Dollars, through investment primarily inemerging country equity securities. The Fundwill invest in those emerging market countriesin which the Company believes that economiesare developing strongly and in which themarkets are becoming more sophisticated.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 8




Investment Holding

Investment Holding

South AfricaStandard Bank Group 715,231 6,964,410 1.68MTN Group 911,850 6,067,508 1.45African Bank Investments 1,193,500 3,384,368 0.81Naspers ‘N’ 259,000 3,205,490 0.77Massmart Holdings 457,225 3,114,434 0.75Edgars Consolidated Stores 69,600 3,017,869 0.72Telkom 177,920 2,909,676 0.70Steinhoff International Holdings 1,276,000 2,900,392 0.70Barloworld 153,400 2,186,464 0.52Aveng 1,060,500 1,972,994 0.47Impala Platinum Holdings 21,969 1,967,786 0.47Shoprite Holdings 852,500 1,853,344 0.44Harmony Gold Mining 186,905 1,626,456 0.39Murray & Roberts Holdings 688,300 1,445,770 0.35Lewis Group 246,100 1,358,791 0.33Harmony Gold Mining ADR 131,904 1,130,417 0.27Metropolitan Holdings 733,200 1,119,860 0.27Pretoria Portland Cement 18,800 643,111 0.15Kumba Resources 28,400 246,073 0.06AVI 5,700 11,331 0.00Sanlam 4,500 7,899 0.00Mittal Steel South Africa 100 707 0.00

Total for South Africa 11.30

BrazilPetroleo Brasileiro ADR 170,315 8,931,319 2.15Companhia Vale do Rio Doce ADR Pfd ‘A’ 312,951 7,902,013 1.89Petroleo Brasileiro ADR Pfd 105,417 4,868,157 1.17Empresa Brasileira de Aeronautica ADR Pfd 110,050 3,633,851 0.87Banco Itau Holding Financeira ADR Pfd 38,569 3,541,791 0.85Banco Itau Holding Financeira Pfd 17,105 3,143,529 0.75Unibanco GDR 70,680 2,678,065 0.64Companhia Energetica de Minas Gerais ADR non-vtg Pfd 59,200 1,836,384 0.44Embratel Participaçoes Pfd 753,348,000 1,567,143 0.38All America Latina Logistica Pfd 46,550 1,383,358 0.33Telesp Celular Participacoes Pfd 291,814 1,268,595 0.30Gerdau Pfd 125,950 1,199,346 0.29Petroleo Brasileiro Pfd 24,741 1,140,785 0.27CPFL Energia 133,165 1,054,352 0.25Tele Norte Leste Participacoes 38,000 866,958 0.21Gerdau ADR Pfd 56,691 544,801 0.13Unibanco - União de Bancos Brasileiros 64,574 489,342 0.12CPFL Energia ADR 13,640 327,769 0.08Telesp Celular Participaçoes ADR Pfd 65,650 284,921 0.07Companhia Energetica de Minas Gerais Pfd 7,237,890 224,004 0.05Companhia Vale do Rio Doce Pfd ‘A’ 5,533 139,411 0.03

Total for Brazil 11.27

MexicoAmerica Movil ADR ‘L’ 221,477 13,266,472 3.19Wal-Mart de Mexico ‘V’ 2,731,401 11,180,185 2.68Grupo Televisa ADR 152,890 9,479,180 2.27Fomento Economico Mexicano ADR 54,800 3,243,064 0.78Grupo Financiero Banorte ‘O’ 278,160 1,852,112 0.44Kimberly-Clark de Mexico ‘A’ 486,300 1,669,488 0.40Wal-Mart de Mexico ADR ‘V’ 32,033 1,313,353 0.31Empresas ICA Sociedad Controledora 1,495,600 612,737 0.15Empresas ICA Sociedad Controledora ADR 95,000 228,950 0.05

Total for Mexico 10.27

Russian FederationLUKOIL ADR 381,652 14,056,243 3.34Sberbank GDR (1) 76,050 5,030,708 1.21

Russian Federation (continued)Mobile Telesystems Regd GDR 72,326 2,401,223 0.58Wimm-Bill-Dann Foods ADR 129,500 2,087,540 0.50Mobile Telesystems ADR 62,400 2,062,944 0.49Efes Breweries International GDR 53,554 1,807,448 0.43Pyaterochka Holding GDR 117,583 1,675,558 0.40Highland Gold Mining 480,900 1,483,573 0.36Vimpel-Communications ADR 36,000 1,203,120 0.29Peter Hambro Mining 101,599 1,193,593 0.29OAO Gazprom ADR 30,800 1,118,040 0.27MCSI 5% /2007 (1) 1,037,582 954,576 0.23Pyaterochka Holding-GDR 144A 5,300 75,525 0.02Alliance Celluose (1) 50,000 0 0.00


IndiaInfosys Technologies 64,716 3,506,163 0.85Bharat Heavy Electricals 170,328 3,385,659 0.81Morgan Stanley Growth Fund 5,372,744 2,798,909 0.67Hero Honda Motors 120,175 1,597,013 0.38HDFC Bank 108,500 1,580,988 0.38Oil & Natural Gas 62,685 1,470,361 0.35Housing Development Finance 71,000 1,442,205 0.35ABB 45,500 1,384,385 0.33Wipro 69,500 1,222,642 0.29Hindustan Lever 308,000 1,157,911 0.28Container Corporation Of India 48,383 1,022,873 0.25Mahindra & Mahindra 78,500 1,007,654 0.24Aventis Pharma 33,000 968,418 0.23Cipla 131,000 944,036 0.23GlaxoSmithKline Pharmaceuticals 50,000 924,064 0.22Hindalco Industries 29,329 809,299 0.19Gujarat Ambuja Cements GDR 596,250 804,938 0.19Glenmark Pharmaceuticals 130,000 803,146 0.19Siemens India 17,691 791,373 0.19Mahanagar Telephone Nigam 278,000 739,766 0.18UTI Bank GDR 113,000 624,890 0.15ITC GDR 14,400 540,000 0.13Industrial Development Bank of India 216,000 506,533 0.12ITC 13,000 492,732 0.12UTI Bank 76,000 431,634 0.10Punjab National Bank 31,795 277,568 0.07Gujarat Ambuja Cements 150,000 203,369 0.05

Total for India 7.54

TurkeyYapi ve Kredi Bankasi 898,884 3,419,850 0.82Turk Hava Yollari 508,000 2,842,223 0.68Hurriyet Gazetecilik 845,059 2,080,339 0.50Turkiye Garanti Bankasi 475,435 2,057,085 0.49Akcansa Cimento 506,344 2,039,730 0.49Dogan Yayin Holding 808,886 2,003,358 0.48Enka Insaat ve Sanayi 151,701 1,697,512 0.41Trakya Cam Sanayi 476,796 1,593,470 0.38Akbank 229,927 1,329,306 0.32Turkcell Iletisim Hizmet 1 5 0.00


ThailandBangkok Bank Public (F) Regd 1,052,000 2,571,131 0.62Kasikornbank (F) 1,645,400 2,189,885 0.52PTT (F) 388,400 2,048,910 0.49Advanced Info Service (F) Regd 744,400 1,765,304 0.42Italian-Thai Development (F) 5,657,200 1,314,195 0.31Total Access Communication 388,000 1,241,600 0.30CP Seven Eleven 5,839,600 798,397 0.19Siam City Bank (F) Regd 1,234,900 784,419 0.19Siam Commercial Bank (F) Regd 653,200 734,998 0.18True (F) 2,879,800 724,741 0.17Thai Oil (F) 425,400 653,670 0.16Banpu (F) Regd 134,600 485,309 0.12Land & Houses Public (F) Regd 2,889,800 475,515 0.11

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 9




Investment Holding

Investment Holding

Thailand (continued)Asian Property Development 4,557,800 399,256 0.10CH. Karnchang 1,445,300 398,703 0.10Sino Thai Engineering & Construction (F) 1,154,900 299,030 0.07MBK (F) 248,900 289,103 0.07Siam Makro (F) 122,000 181,561 0.04Lalin Property (F) 1,412,600 172,623 0.04Sino Thai Engineering & Construction (F)Wts exp. 18/04/2008 207,633 21,705 0.01


PolandTelekomunikacja Polska GDR 684,600 4,141,830 1.00Powszechna Kasa Oszczednosci Bank Polski 370,484 3,002,999 0.72Agora 108,758 2,074,235 0.50Telekomunikacja Polska 254,759 1,563,917 0.37TVN 105,975 1,547,449 0.37Bank Pekao 35,376 1,502,244 0.36


ChinaKingboard Chemical Holdings 568,000 1,812,198 0.42China Life Insurance ‘H’ 2,302,000 1,569,593 0.38Ping An Insurance Group Co of China ‘H’ 938,000 1,508,407 0.36China Resources Power Holdings 2,327,000 1,294,757 0.31Yanzhou Coal Mining ‘H’ 1,520,000 1,192,832 0.29Asia Aluminum Holdings 8,676,000 1,026,864 0.25Foxconn International Holdings 1,245,000 928,973 0.22Huadian Power International ‘H’ 3,238,000 916,443 0.22Lianhua Supermarket Holdings ‘H’ 638,000 726,390 0.17China Techfaith Wireless Communication Technology ADR 36,700 612,890 0.15Wumart Stores ‘H’ 345,000 554,798 0.13Norstar Founders Group 1,728,000 494,629 0.12Victory City International 1,273,000 413,519 0.10Hainan Meilan International Airport ‘H’ 702,000 401,886 0.10Air China ‘H’ 1,091,000 368,434 0.09


Hong KongChina Mobile (Hong Kong) 687,000 2,558,651 0.60Global Bio-Chem Technology Group 2,595,000 1,610,796 0.39TPV Technology 2,207,000 1,479,934 0.35GOME Electrical Appliances Holdings 1,264,000 1,089,501 0.26Hopewell Highway Infrastructure 1,481,000 1,066,962 0.26Fountain SET Holdings 1,423,000 732,269 0.18Grande Holdings 632,000 589,469 0.14Shougang Concord Century 3,901,000 321,190 0.08Moulin Global Eyecare Holdings (1) 740,000 0 0.00


MalaysiaTenaga Nasional 736,000 2,033,684 0.48YTL 958,800 1,349,889 0.32SP Setia 855,499 918,536 0.22Commerce Asset Holdings 620,000 823,947 0.20Magnum 1,235,000 702,000 0.17Resorts World 239,000 597,500 0.14MK Land Holdings 1,460,000 422,632 0.10Bandar Raya Developments 901,100 355,697 0.09Road Builder (M) 515,000 322,553 0.08


EgyptEastern Tobacco 83,590 2,975,298 0.71MobiNil - Egyptian Mobile Services 88,868 2,794,793 0.67

Total for Egypt 1.38

ChileEnersis ADR 468,700 4,986,968 1.20

Total for Chile 1.20

IndonesiaPT Bank Central Asia 2,895,000 1,067,554 0.26Bank Rakyat Indonesia 3,299,500 980,133 0.23PT Bumi Resources 5,580,500 474,450 0.11PT Gudang Garam 281,000 364,113 0.09PT Indocement Tunggal Prakarsa 122,000 43,114 0.01


IsraelCheck Point Software Technologies 148,802 2,926,935 0.70Elbit Systems 1 15 0.00


ColombiaBanColombia ADR Pfd 111,700 1,786,084 0.44

Total for Colombia 0.44

AustriaRaiffeisen International Bank Holding 27,552 1,713,626 0.41

Total for Austria 0.41

MoroccoBanque Marocaine du Commerce Exterieur 20,800 1,318,310 0.32

Total for Morocco 0.32

ArgentinaRenault Argentina 2 1 0.00

Total for Argentina 0.00

Total transferable securities admitted to official exchange listing or dealt in on another regulated market 97.62

Other transferable securities not admitted to official exchange listingor dealt in on another regulated market.

BrazilBanco Nacional Pfd (1) 30,754,160 0 0.00Lojas Arapua GDR 144A Pfd (1) 12,659 0 0.00Lojas Arapua Pfd (1) 11,491,000 0 0.00


Total other transferable securities not admitted to official exchange listing or dealt in on another regulated market 0.00


Total NAV 417,221,531 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 10


European Equity Fund

United KingdomGlaxoSmithKline 439,141 8,952,349 3.65BP 899,629 7,811,182 3.17Morrison WM Supermarkets 2,716,256 7,437,054 3.02Vodafone Group 3,579,058 7,362,856 2.99Royal Bank of Scotland Group 291,142 7,325,898 2.98Prudential 609,244 4,517,009 1.84Cadbury Schweppes 480,416 3,792,410 1.54International Power 1,233,847 3,782,169 1.54O2 1,687,401 3,402,280 1.38BOC Group 216,408 3,242,763 1.32Amvescap 574,986 2,847,002 1.16Smith & Nephew 348,300 2,809,087 1.14Carnival 57,538 2,702,973 1.10Tesco 525,620 2,494,400 1.01Shell Transport & Trading 310,200 2,491,420 1.01AstraZeneca 70,548 2,420,786 0.98Reckitt Benckiser 98,491 2,407,945 0.98Standard Chartered 73,110 1,115,098 0.45

Total for United Kingdom 31.26

NetherlandsRoyal Dutch Petroleum 140,811 7,582,672 3.09Royal KPN 1,091,475 7,563,922 3.07ING Groep ‘CVA’ 204,843 4,793,326 1.95Wolters Kluwer ‘CVA’ 297,237 4,687,427 1.90ASML Holding 346,228 4,559,823 1.85TNT 168,977 3,555,276 1.44Royal Numico 74,556 2,455,129 1.00VNU 105,339 2,433,331 0.99

Total for Netherlands 15.29

FranceTotal 46,022 8,951,279 3.64BNP Paribas 136,665 7,735,239 3.14France Telecom 283,567 6,904,856 2.81Schneider Electric 66,870 4,186,062 1.70Axa 169,053 3,528,136 1.43Sanofi-Aventis 50,268 3,418,224 1.39M6-Metropole Television 82,611 1,738,962 0.71

Total for France 14.82

SwitzerlandNovartis Regd 209,066 8,240,806 3.35UBS Regd 122,138 7,917,446 3.22Nestlé Regd 19,412 4,107,841 1.67Roche Holding ‘Genußschein’ 33,716 3,522,209 1.43Credit Suisse Group 69,432 2,263,871 0.92

Total for Switzerland 10.59

GermanySiemens Regd 79,977 4,853,004 1.97Allianz Regd 50,584 4,849,994 1.97Deutsche Bank Regd 65,544 4,242,663 1.72Bayerische Motoren Werke 101,856 3,829,786 1.56Fresenius Medical Care 37,277 2,611,254 1.06Volkswagen 46,465 1,778,680 0.72

Total for Germany 9.00

I

A

B

10.15% 9.81% 9.30% 11.84%12

10

8

6

4

2

0I A B




MSCI Europe (Net) Index (expressed in Euro)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in Euro, through investmentprimarily in equity securities of medium to large sized companies domiciled orexercising the predominant part of theireconomic activity in European countries.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 11

European Equity Fund


Investment Holding

SpainBanco Bilbao Vizcaya Argentaria 590,866 7,592,628 3.09Banco Santander Central Hispano 371,196 3,574,617 1.45Altadis 52,457 1,819,209 0.74

Total for Spain 5.28

SwedenForeningsSparbanken 218,998 3,996,776 1.62Sandvik 113,638 3,508,793 1.43

Total for Sweden 3.05

ItalyENI 212,204 4,485,993 1.82UniCredito Italiano 573,425 2,513,035 1.02

Total for Italy 2.84

FinlandNokia 271,800 3,802,482 1.55Sampo 218,835 2,816,406 1.14

Total for Finland 2.69

DenmarkCarlsberg ‘B’ 81,876 3,477,612 1.41Novo-Nordisk ‘B’ 58,622 2,470,251 1.00

Total for Denmark 2.41

AustriaTelekom Austria 140,809 2,279,698 0.93



Total NAV 246,080,308 100.00


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 12


European Property Fund

United KingdomLand Securities Group 1,778,030 36,776,154 9.48British Land 2,615,772 34,038,634 8.77Liberty International 1,428,840 20,613,125 5.31Slough Estates 2,097,697 16,153,459 4.16Hammerson 1,204,050 15,847,282 4.09Minerva 2,635,739 10,511,135 2.71London Merchant Securities 2,934,201 9,660,188 2.49Unite Group 2,084,030 9,117,247 2.35Capital & Regional 687,140 8,333,266 2.15Brixton 1,335,200 7,018,445 1.81Shaftesbury 998,616 5,572,399 1.44Derwent Valley Holdings 313,486 5,537,086 1.43Grainger Trust 748,634 4,567,366 1.18Freeport 662,496 4,312,943 1.11Pillar Property 322,794 4,068,378 1.05Great Portland Estates 440,160 2,256,380 0.58CLS Holdings 276,142 1,853,196 0.48Workspace Group 221,381 786,495 0.20


NetherlandsRodamco Europe 374,721 25,387,348 6.54Wereldhave 104,215 9,264,714 2.39Corio 180,599 8,370,764 2.16Eurocommercial Properties 263,134 7,930,859 2.04Vastned Retail 27,390 1,537,949 0.40Vastned Offices/Industrial 71,910 1,511,548 0.39


SpainInmobiliaria Colonial 305,705 13,267,597 3.42Inmobiliaria Urbis 662,663 10,370,676 2.67Metrovacesa 79,404 3,899,530 1.01


ItalyBeni Stabili 20,426,646 17,076,676 4.40Immobiliare Grande Distribuzione 2,274,183 3,843,369 0.99Aedes 430,923 2,296,820 0.59Risanamento 95,413 265,248 0.07


FranceUnibail 103,061 10,955,384 2.82Klepierre 110,765 8,728,282 2.25SILIC (Société Immobilière de Location pour l’Industrie et le Commerce) 23,294 1,925,249 0.50Gecina 11,215 1,046,920 0.27Fonciere des Regions 326 27,058 0.01


SwitzerlandPSP Swiss Property 374,891 13,445,894 3.47Allreal Holding 28,251 2,028,333 0.52


FinlandSponda 1,630,414 13,858,519 3.57


I

A

B

20

15

10

5

0

15.65% 15.26% 14.68% 16.15%

I A B




GPR - General Real Estate Securities Index - Europe Net(expressed in Euro)

IX

AX

20

15

10

5

0

3.05% 3.00% 16.15%

IX AX



GPR - General Real Estate Securities Index - Europe Net(expressed in Euro)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in Euro, through investment in the equity securities of companies in the European real estate industry.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 13

European Property Fund


Investment Holding

SwedenHufvudstaden ‘A’ 1,734,455 10,720,133 2.76Castellum 55,269 1,861,944 0.48


GermanyIVG Immobilien 524,459 8,055,691 2.08


BelgiumCofinimmo 11,857 1,535,482 0.39Befimmo S.C.A. Sicafi 9,146 731,680 0.19

Total for Belgium 0.58

AustriaMeinl European Land 118,300 1,694,056 0.44



Total NAV 387,916,646 100.00


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 14


European Small Cap Value Fund

United KingdomCattles 274,348 1,253,293 2.15Luminar 114,553 928,999 1.58Spirax-Sarco Engineering 80,205 885,560 1.51Interserve 166,507 868,426 1.48Devro 437,449 846,220 1.44Rotork 107,830 755,741 1.29William Hill 90,586 726,545 1.24Stagecoach Group 399,534 700,047 1.19DX Services 119,020 614,557 1.05Elementis 769,429 589,642 1.01Wincanton 159,192 588,654 1.00SSL International 124,974 526,282 0.90Travis Perkins 16,756 426,113 0.73Keller Group 76,539 348,488 0.59House Of Fraser 201,900 325,220 0.55Trinity Mirror 32,460 302,126 0.52Johnston Press 40,709 289,100 0.49Regent Inns 227,585 264,150 0.45Aviva 1,348 12,497 0.02


FranceGL Trade 22,212 732,996 1.24NRJ Group 38,842 714,693 1.22IPSOS 8,105 688,925 1.18Stallergenes 5,435 586,980 1.00Saft Groupe 22,129 585,533 1.00Neopost 7,903 576,129 0.98Wendel Investissement 8,410 575,244 0.98Zodiac 10,158 452,844 0.77Nexity 12,830 407,994 0.70Imerys 6,500 373,425 0.64


SwitzerlandSIG Holding Regd 8,088 1,514,397 2.59Schindler Holding ‘PC’ 3,372 1,002,577 1.72Valora Holding 3,299 609,185 1.04Galenica Holding Regd 3,752 530,043 0.90Mobilezone Holding 145,097 457,171 0.78Edipresse ‘Bearer’ 955 400,790 0.68Sia Abrasives Holding 1,812 342,496 0.58Saurer Regd 6,328 328,899 0.56Kaba Holdings Regd ‘B’ 1,296 294,543 0.50


ItalyInterpump 229,050 1,220,837 2.09Arnoldo Mondadori Editore 108,846 858,251 1.46Davide Campari-Milano 130,190 785,046 1.34Buzzi Unicem 65,024 778,988 1.33Engineering Ingegneria Informatica 22,563 602,432 1.03Cassa di Risparmio di Firenze 246,394 528,515 0.90Sabaf 18,909 304,435 0.52Saes Getters 16,567 283,296 0.48Banca Italease 9,854 112,336 0.19


NetherlandsNutreco Holding 34,802 1,148,814 1.95Univar 40,409 1,144,383 1.95Koninklijke Vopak 30,912 642,970 1.10Trader Classified Media ‘A’ 44,652 590,299 1.01

I

A

B

20

15

10

5

0

13.89% 13.46% 12.92% 17.41%

I A B




MSCI European Small Cap Index (expressed in Euro)

IX

AX

20

15

10

5

0

4.30% 4.25% 17.41%

IX AX



MSCI European Small Cap Index (expressed in Euro)


INVESTMENT AIMS

To provide an attractive rate of return,measured in Euro, by investing primarily inthe common stocks of small to medium sizedEuropean corporations with a marketcapitalisation of up to US$ 3 billion (or equivalent) that the Company believes to be undervalued relative to the stockmarket in general at the time of purchase.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 15

European Small Cap Value Fund


Investment Holding

Investment Holding

Netherlands (continued)Van Lanschot ‘CVA’ 8,470 423,077 0.72ASM International 27,161 357,982 0.61Laurus 125,570 322,715 0.55Grontmij ‘CVA’ 5,785 308,630 0.53


GermanyTechem 30,118 1,048,106 1.78Schwarz Pharma 22,434 846,884 1.44K+S 17,561 814,830 1.39Grenkeleasing 15,835 557,392 0.95Hugo Boss Pfd 18,280 495,754 0.85GFK 9,891 320,073 0.55


DenmarkCarlsberg ‘B’ 33,762 1,434,012 2.45Codan 16,049 664,437 1.13Danisco 10,450 563,057 0.96Kobenhavns Lufthavne (Copenhagen Airports) 2,710 530,246 0.90


GreeceSarantis 121,443 721,371 1.23Intralot - Integrated Lottery Systems & Services 56,800 699,776 1.19MJ Maillis 167,980 587,930 1.00Piraeus Bank 34,080 525,514 0.90Neochimiki LV Lavrentiadis 75,180 303,727 0.52

Total for Greece 4.84

NorwaySchibsted 64,033 1,452,835 2.48Visma 87,436 873,103 1.49Veidekke 14,979 282,109 0.48

Total for Norway 4.45

SwedenEniro 92,466 883,010 1.51Saab ‘B’ 52,488 704,517 1.20Swedish Match 30,554 286,915 0.49Intrum Justitia 45,350 255,032 0.43Gunnebo 26,018 200,149 0.34Gunnebo Industrier 5,203 44,304 0.08


IrelandKerry Group ‘A’ 50,091 1,021,855 1.74C&C Group 178,652 661,012 1.13Kingspan Group 34,197 334,447 0.57Independent News & Media 57,070 145,529 0.25

Total for Ireland 3.69

SpainProsegur Compania de Seguridad Regd 59,970 1,053,672 1.80Miquel Y Costas 19,577 635,274 1.08Amadeus Global Travel Distribution ‘A’ 22,951 165,477 0.28


FinlandVacon 44,966 631,772 1.08Uponor 33,806 540,220 0.92KCI Konecranes 9,863 347,671 0.59Ramirent 13,806 214,407 0.37


BelgiumOmega Pharma 34,823 1,470,574 2.51Elia System Operator 4,975 141,589 0.24


AustriaAndritz 11,161 877,030 1.50


LuxembourgSBS Broadcasting 9,385 368,313 0.63

Total for Luxembourg 0.63


Total NAV 58,630,296 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 16


European Value Equity Fund

United KingdomGlaxoSmithKline 771,741 15,732,747 4.09Shell Transport & Trading 1,808,644 14,526,406 3.79Vodafone Group 6,881,811 14,157,296 3.69Royal Bank of Scotland Group 374,446 9,422,046 2.46AstraZeneca 177,827 6,101,961 1.59Allied Domecq 517,964 5,187,129 1.35Morrison WM Supermarkets 1,754,844 4,804,728 1.25Hays 2,345,400 4,519,591 1.18Smiths Group 305,640 4,159,167 1.08Man Group 181,857 3,888,653 1.01Rexam 519,082 3,707,572 0.97Reed Elsevier 442,927 3,516,244 0.92Bunzl 451,665 3,454,554 0.90Rolls-Royce Group 668,812 2,838,848 0.74Scottish & Southern Energy 172,902 2,602,426 0.68Diageo 203,949 2,479,454 0.65Cadbury Schweppes 306,064 2,416,073 0.63British American Tobacco 148,630 2,366,479 0.62HSBC Holdings 171,987 2,282,826 0.59National Grid Transco 244,341 1,963,372 0.51Prudential 264,244 1,959,137 0.51Lloyds TSB Group 270,480 1,905,757 0.50BOC Group 126,960 1,902,431 0.50Filtrona 290,356 1,041,263 0.27Rolls-Royce Group ‘B’ 33,440,600 49,263 0.01


FranceFrance Telecom 671,266 16,345,327 4.25Total 48,735 9,478,958 2.47BNP Paribas 147,532 8,350,311 2.18Schneider Electric 108,404 6,786,090 1.77Sanofi-Aventis 82,088 5,581,984 1.45Société Générale 60,900 5,109,510 1.33Axa 198,559 4,143,926 1.08Sodexho Alliance 154,618 3,961,313 1.03Atos Origin 75,414 3,944,152 1.03Carrefour 85,983 3,452,217 0.90Neopost 30,869 2,250,350 0.59Groupe Danone 27,222 1,976,317 0.52Peugeot 39,763 1,943,218 0.51Cap Gemini 72,267 1,912,185 0.50


SwitzerlandNovartis Regd 391,270 15,422,786 4.02Nestlé Regd 44,252 9,364,319 2.44UBS Regd 130,251 8,443,361 2.20Swiss Reinsurance Regd 107,663 5,488,065 1.43Ciba Speciality Chemicals Regd 68,865 3,325,835 0.87Zürich Financial Services Regd 14,189 2,006,303 0.52Schindler Holding Regd 6,322 1,887,847 0.49


NetherlandsWolters Kluwer ‘CVA’ 803,076 12,664,509 3.30Unilever ‘CVA’ 221,443 11,869,345 3.09Royal Dutch Petroleum 193,155 10,401,397 2.71TNT 183,613 3,863,218 1.01ING Groep ‘CVA’ 82,785 1,937,169 0.50Koninklijke Ahold 280,505 1,901,824 0.50VNU 77,628 1,793,207 0.47


I

A

B

11.21% 10.86% 10.29% 11.84%12

10

8

6

4

2

0I A B




MSCI Europe (Net) Index (expressed in Euro)


INVESTMENT AIMS

To seek long-term capital growth, measuredin Euro, through investment in the equitysecurities of European companies listed onEuropean Stock Exchanges. Investments willbe sought in equity securities that theCompany believes to be undervalued relativeto the stock market in general at the time ofpurchase.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 17

European Value Equity Fund


Investment Holding

GermanySiemens Regd 123,023 7,465,036 1.94Allianz Regd 59,884 5,741,678 1.50Deutsche Telekom Regd 367,933 5,647,772 1.47Bayerische Motoren Werke 141,069 5,304,194 1.38Muenchener Rueckversicherungs Regd 53,131 4,684,029 1.22Linde 40,356 2,255,900 0.59Volkswagen 24,916 953,784 0.25


SpainBanco Santander Central Hispano 613,427 5,907,302 1.54Altadis 137,262 4,760,246 1.24Telefonica 277,540 3,777,319 0.98Banco Bilbao Vizcaya Argentaria 285,952 3,674,483 0.96


ItalyUniCredito Italiano 957,874 4,197,883 1.09ENI 183,077 3,870,248 1.01Telecom Italia ‘RNC’ 1,540,181 3,322,941 0.87


BelgiumAGFA-Gevaert 210,232 4,755,448 1.24Solvay 50,075 4,248,864 1.11Fortis 83,429 1,899,678 0.50


PolandBank Pekao 102,355 3,606,016 0.94Telekomunikacja Polska 671,416 3,419,500 0.89


IrelandBank of Ireland 311,896 4,173,168 1.09Kerry Group ‘A’ 113,803 2,321,581 0.61


AustriaTelekom Austria 199,815 3,235,005 0.84


FinlandSampo 244,411 3,145,570 0.82


SwedenNordea Bank 289,279 2,163,950 0.56


DenmarkCarlsberg ‘B’ 49,016 2,081,912 0.54



Total NAV 383,711,754 100.00


Investment HoldingMarket

value% of net

assets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 18

Global Brands Fund

United KingdomBritish American Tobacco 6,676,150 128,125,467 7.93Cadbury Schweppes 10,240,773 97,441,447 6.03Reckitt Benckiser 2,503,159 73,765,212 4.56GlaxoSmithKline 2,767,661 68,007,852 4.20Diageo 4,483,558 65,700,768 4.06Allied Domecq 4,464,528 53,890,996 3.33Imperial Tobacco Group 2,004,755 53,612,313 3.31Unilever 4,293,099 41,157,047 2.54WPP Group 3,463,371 35,873,736 2.22SMG 7,941,993 13,746,192 0.85GCAP Media 1,587,861 7,661,086 0.47


United States of AmericaAltria Group 1,092,817 71,142,387 4.41Merck & Co 1,879,303 57,938,911 3.58Bristol-Myers Squibb 1,918,579 48,367,377 2.99New York Times ‘A’ 1,336,457 42,044,937 2.60Brown-Forman ‘B’ non-vtg 662,083 40,473,134 2.50Kimberly-Clark 554,122 35,125,794 2.17

Total for United States of America 18.25

NetherlandsRoyal Numico 1,426,491 56,620,531 3.50Wolters Kluwer ‘CVA’ 2,624,263 49,882,961 3.08Reed Elsevier 3,052,465 42,385,405 2.62


SwitzerlandNestlé Regd 264,602 67,491,580 4.17Novartis Regd 1,199,261 56,978,781 3.52


FranceGroupe Danone 570,559 49,928,711 3.09Sanofi-Aventis 492,784 40,390,449 2.50


FinlandKone 1,031,738 61,869,368 3.83Cargotec 556,224 15,406,817 0.95


SwedenSwedish Match 6,167,113 69,803,872 4.31


SpainAltadis 1,062,510 44,414,552 2.75Zardoya-Otis 362,330 10,433,586 0.64


CanadaTorstar ‘B’ 1,997,155 40,325,455 2.49

Total for Canada 2.49

Total Investment Securities 1,540,006,724 95.20

Total NAV 1,617,723,035 100.00

3.56% 3.20% 2.68% (0.70)%4

3

2

1

0

-1I A B

I

A

B




MSCI World (Net) Index (expressed in US dollars)


INVESTMENT AIMS

To seek an attractive long-term rate of return,measured in US Dollars, through investmentprincipally in equity securities of companies in the world’s developed countries.


Investment Holding



Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 19



Investment Holding


Global Small Cap Value Fund

United States of AmericaApria Healthcare Group 96,000 3,342,720 1.76Laidlaw International 76,900 1,852,521 0.97TBC 66,500 1,816,115 0.95DRS Technologies 35,900 1,814,745 0.95Pacer International 78,300 1,739,043 0.91Denbury Resources 41,900 1,638,709 0.86ProAssurance 38,203 1,585,425 0.83MAXIMUS 42,800 1,517,260 0.80Bio-Rad Laboratories ‘A’ 24,470 1,458,412 0.77MSC.Software 104,800 1,430,520 0.75Reinsurance Group of America 30,300 1,404,405 0.74Universal Compression Holdings 38,770 1,401,923 0.74Superior Energy Services 79,400 1,397,440 0.73Cytec Industries 34,700 1,395,287 0.73Acuity Brands 53,400 1,391,070 0.73PNM Resources 46,200 1,344,420 0.71Denny’s 254,900 1,325,480 0.70Belden CDT 63,250 1,321,293 0.69Watts Water Technologies ‘A’ 38,100 1,293,114 0.68Conseco 56,900 1,243,834 0.65AGL Resources 31,500 1,208,025 0.63Corn Products International 50,200 1,197,270 0.63Anthracite Capital 98,600 1,187,144 0.62Terex 29,560 1,186,834 0.62AFC Enterprises 86,300 1,159,872 0.61Gevity HR 57,900 1,157,421 0.61CCC Information Services Group 49,613 1,152,014 0.60Triad Guaranty 22,800 1,149,120 0.60Albany International ‘A’ 35,000 1,121,400 0.59Intergraph 31,700 1,099,673 0.58Jackson Hewitt Tax Service 46,900 1,098,398 0.58Electronics for Imaging 55,600 1,093,096 0.57Brink’s 29,900 1,083,875 0.57Central Garden and Pet 21,385 1,060,696 0.56Stage Stores 24,200 1,047,618 0.55Banta 22,300 1,025,800 0.54Overnite 23,700 1,018,626 0.53Sinclair Broadcast Group ‘A’ 111,400 1,014,854 0.53Geo Group 41,000 1,012,290 0.53Moog ‘A’ 30,950 990,400 0.52St. Mary Land & Exploration 34,060 974,797 0.51NBTY 37,000 971,620 0.51Circor International 38,600 965,000 0.51New York & Co 45,900 950,130 0.50R.H. Donnelley 14,900 930,803 0.49UGI 33,100 903,961 0.47Collegiate Funding Services 62,700 897,864 0.47ProQuest 27,300 885,066 0.46Rock-Tenn ‘A’ 68,500 878,170 0.46Central Pacific Financial 23,700 853,911 0.45Adtran 33,200 836,640 0.44Hercules 58,109 835,607 0.44First Niagara Financial Group 57,500 832,600 0.44General Cable 53,750 800,338 0.42Provident Bankshares 24,600 794,580 0.42Meristar Hospitality 91,000 792,610 0.42LoJack 44,000 790,240 0.41Schulman (A.) 43,700 787,037 0.41Delta & Pine Land 29,600 759,536 0.40Heritage Property Investment Trust 21,300 748,056 0.39Ralcorp Holdings 17,800 729,266 0.38Integra Bank 31,000 713,000 0.37Linens ’N Things 29,400 700,014 0.37School Specialty 14,700 687,813 0.36OM Group 29,000 686,430 0.36MB Financial 16,800 671,496 0.35Elizabeth Arden 27,500 645,150 0.34Methode Electronics 50,900 610,800 0.32Parkway Properties 11,800 585,280 0.31

2.58% 2.16% 1.69% 1.46%3

2

1

0I A B

I

A

B




MSCI World Small Cap Index (expressed in US dollars)


INVESTMENT AIMS

To provide an attractive rate of return,measured in US Dollars, by investing in the common stocks of small to medium sizedcorporations that the Company believes to beundervalued relative to the stock market in general at the time of purchase.

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 20




Investment Holding

Investment Holding

United States of America (continued)Kilroy Realty 11,000 527,230 0.28NYMAGIC 22,300 522,935 0.27EMS Technologies 33,995 512,985 0.27Alabama National Bancorporation 7,100 468,529 0.25Provident New York Bancorp 37,630 457,205 0.24Independent Bank 15,306 444,333 0.23Syniverse Holdings 25,010 350,640 0.18Tenneco Automotive 6,600 112,596 0.06Cenveo 4,500 34,875 0.02


JapanSumitomo Osaka Cement 985,000 2,625,006 1.37Ariake Japan 93,570 2,155,504 1.13Sanyo Electric Credit 86,600 1,752,419 0.92Aplus 335,500 1,627,567 0.85Nakanishi 15,700 1,582,836 0.83Shinkawa 72,500 1,349,203 0.71ITO En 25,800 1,326,185 0.70Nisshin Fire & Marine Insurance 284,200 1,019,264 0.53Takuma 133,000 945,580 0.50Toppan Forms 75,300 846,908 0.44Yamaichi Electronics 56,000 756,312 0.40TOC when issued 183,000 752,202 0.39TOC 174,400 716,853 0.38Daibiru 89,000 646,425 0.34Futaba 23,700 642,305 0.34Nihon Trim 10,750 615,701 0.32Keisei Electric Railway 121,000 606,667 0.32Union Tool 20,800 591,897 0.31Fujimi 29,900 515,643 0.27HS Securities Company 31,000 515,010 0.27Asia Securities Printing 40,000 496,499 0.26Taisei Lamick 16,500 432,269 0.23Nitta 29,900 425,156 0.22Patlite 19,900 422,467 0.22Zentek Technology Japan 167 395,266 0.21Yomiuri Land 71,000 378,427 0.20Nippon Restaurant System 11,800 368,833 0.19Nippon Restaurant System when issued 11,600 362,582 0.19Tenma 19,300 360,911 0.19Hurxley 19,200 340,828 0.18Aiful 2,550 190,510 0.10Asatsu-Dk 6,700 187,027 0.10Megane TOP 14,700 129,876 0.07


United KingdomLuminar 197,193 1,927,585 1.01Cattles 299,596 1,649,681 0.87Spirax-Sarco Engineering 92,860 1,235,828 0.65William Hill 120,813 1,167,960 0.61Catlin Group 135,764 989,244 0.52Wincanton 215,092 958,686 0.50Stagecoach Group 438,664 926,443 0.49Rotork 105,072 887,633 0.47DX Services 115,363 717,995 0.38SSL International 128,990 654,739 0.34Devro 230,275 536,928 0.28SIG 46,073 528,874 0.28Keller Group 84,921 466,051 0.24De La Rue 62,984 454,414 0.24FKI 233,244 407,888 0.21GCAP Media 67,602 326,165 0.17


SwitzerlandSIG Holding Regd 11,792 2,661,333 1.40Schindler Holding ‘PC’ 5,351 1,917,690 1.01Kaba Holdings Regd ‘B’ 3,453 945,917 0.50Edipresse ‘Bearer’ 1,855 938,363 0.49Galenica Holding Regd 3,783 644,165 0.34Sia Abrasives Holding 2,623 597,598 0.31Zehnder Group ‘B’ 398 477,619 0.25Valora Holding 1,812 403,309 0.21


FranceNeopost 11,587 1,018,150 0.54Saft Groupe 31,306 998,460 0.52NRJ Group 39,980 886,694 0.47Zodiac 14,964 804,083 0.42GL Trade 14,784 588,057 0.31Autoroutes du Sud de la France 9,830 559,727 0.29


GermanyTechem 27,414 1,149,913 0.60K+S 18,140 1,014,538 0.53Hugo Boss Pfd 24,100 787,807 0.41GFK 19,948 778,074 0.41Celesio 5,529 429,853 0.23Sartorius Pfd 18,601 397,968 0.21Rational 2,577 276,389 0.15


AustraliaPacific Brands 555,513 958,245 0.50John Fairfax Holdings 289,891 947,239 0.50Ramsay Health Care 127,491 858,360 0.45MYOB 902,483 730,374 0.38Just Group 292,078 468,315 0.25Infomedia 1,100,176 409,652 0.21


IrelandKerry Group ‘A’ 71,273 1,752,542 0.91C&C Group 259,630 1,157,897 0.61Kingspan Group 41,726 491,880 0.26Icon ADR 14,025 490,174 0.26Independent News & Media 155,567 478,157 0.25


ItalyDavide Campari-Milano 169,891 1,234,812 0.65Buzzi Unicem 77,094 1,113,245 0.58Cassa di Risparmio di Firenze 286,850 741,644 0.39Saes Getters 30,778 634,380 0.33Sogefi 57,926 301,802 0.16Banca Italease 13,405 184,198 0.10Interpump 17,384 111,684 0.06


New ZealandFisher & Paykel Healthcare 583,620 1,320,786 0.69Warehouse Group 452,166 1,255,575 0.66Fisher & Paykel Appliances Holdings 332,112 772,350 0.41Sky City Entertainment Group 144,493 449,376 0.24

Total for New Zealand 2.00

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 21




Investment Holding

Investment Holding

NorwaySchibsted 99,172 2,712,156 1.42Visma 47,023 565,977 0.30Veidekke 21,566 489,573 0.26


DenmarkCarlsberg ‘B’ 42,116 2,156,179 1.13Danisco 14,431 937,230 0.49Kobenhavns Lufthavne (Copenhagen Airports) 2,006 473,099 0.25


SwedenSaab ‘B’ 75,982 1,229,294 0.65Swedish Match 95,032 1,075,641 0.56Intrum Justitia 67,311 456,264 0.24Gunnebo 46,631 432,381 0.23Gunnebo Industrier 9,136 93,768 0.05


CanadaIntrawest 79,600 1,909,603 1.00Hummingbird 33,875 728,651 0.38


FinlandKCI Konecranes 18,938 804,649 0.42Pohjola Group ‘D’ 38,959 565,389 0.30Uponor 24,038 463,008 0.24Ramirent 21,284 398,417 0.21


NetherlandsNutreco Holding 36,127 1,437,443 0.75Van Lanschot ‘CVA’ 8,140 490,087 0.26Laurus 84,957 263,176 0.14


BelgiumOmega Pharma 37,577 1,912,741 1.00Elia System Operator 7,003 240,233 0.13


BermudaPlatinum Underwriters Holdings 37,500 1,192,874 0.63Max Re Capital 38,800 882,700 0.46

Total for Bermuda 1.09

Cayman IslandsSolomon Systech International 1,852,300 655,314 0.34United America Indemnity ‘A’ 65,922 1,138,472 0.60

Total for Cayman Islands 0.94

South KoreaKT&G 43,470 1,704,870 0.89


AustriaAndritz 16,976 1,607,905 0.84


SpainMiquel Y Costas 20,390 797,525 0.42


IsraelLipman Electronic Engineering 23,100 732,963 0.38


Hong KongAsia Satellite Telecommunications Holdings 275,000 481,146 0.25


ChinaWeichai Power ‘H’ 126,100 373,119 0.20




GermanySCS Standard Computersysteme (1) 1,795 0 0.00




Total NAV 190,586,306 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 22


Global Value Equity Fund

United States of AmericaCitigroup 946,591 44,281,527 3.56Boeing 528,790 32,610,479 2.62Tyco International 1,092,197 32,012,294 2.57Wyeth 627,487 27,916,897 2.24Altria Group 411,177 26,767,623 2.15International Business Machines 280,084 20,927,876 1.68Pfizer 621,231 17,295,071 1.39Bristol-Myers Squibb 651,053 16,413,046 1.32Verizon Communications 451,776 15,690,180 1.26Chevron 268,263 15,226,608 1.21Hewlett-Packard 625,991 15,067,603 1.21St. Paul Travelers Companies 377,258 15,041,276 1.21General Dynamics 128,477 14,128,616 1.14First Data 347,735 13,926,787 1.12SBC Communications 573,497 13,729,518 1.10McDonald’s 485,979 13,563,674 1.09Mellon Financial 458,466 13,180,898 1.06American Electric Power 352,486 12,908,037 1.04Merrill Lynch & Co 227,143 12,642,779 1.02BJ’s Wholesale Club 364,222 11,778,939 0.95Viacom non-vtg ‘B’ 356,659 11,644,916 0.94Northrop Grumman 195,154 10,875,932 0.87New York Times ‘A’ 317,503 9,988,644 0.80Alcoa 360,409 9,478,757 0.76MBIA 140,720 8,438,978 0.68Prudential Financial 120,720 8,003,736 0.64Xerox 544,578 7,722,116 0.62Schering-Plough 393,326 7,717,056 0.62Georgia-Pacific 237,382 7,662,691 0.62American International Group 116,468 6,811,049 0.55Freddie Mac 94,251 6,145,165 0.49Exxon Mobil 103,865 6,069,871 0.49The Gap 298,247 5,991,782 0.48Loews - Carolina Group 169,612 5,607,373 0.45


United KingdomGlaxoSmithKline 1,406,115 34,551,508 2.78Reed Elsevier 2,358,925 22,572,214 1.81Cadbury Schweppes 2,273,107 21,628,722 1.74Vodafone Group 8,719,627 21,621,641 1.74Imperial Tobacco Group 803,803 21,495,763 1.73Royal Bank of Scotland Group 705,788 21,406,392 1.72Rolls-Royce Group 3,228,468 16,517,630 1.33Barclays 1,593,832 15,822,888 1.27Diageo 1,037,880 15,208,795 1.22BAA 790,233 8,794,731 0.71Morrison WM Supermarkets 2,609,431 8,611,707 0.69WPP Group 678,861 7,031,669 0.56Allied Domecq 547,230 6,605,574 0.53Amvescap 1,002,798 5,984,903 0.48Rentokil Initial 1,916,696 5,397,324 0.43Rolls-Royce Group ‘B’ 167,020,250 296,572 0.02


JapanTakeda Pharmaceutical 400,300 19,889,336 1.61Canon 283,900 14,977,876 1.20Fuji Photo Film 454,800 14,667,654 1.18Kao 601,000 14,197,705 1.14Astellas Pharma 352,100 12,055,278 0.97Sumitomo Electric Industries 988,000 10,139,284 0.81Sekisui House 940,000 9,519,310 0.76Mitsui Sumitomo Insurance 680,000 6,136,863 0.49Toyota Motor 139,100 4,988,726 0.40


(1.33)% (1.68)% (2.17)% (0.70)%0.0

-0.5

-1.0

-1.5

-2.0

-2.5I A B

I

A

B






INVESTMENT AIMS

To seek an attractive long-term rate of return,measured in US Dollars, through investmentprincipally in equity securities of companieslisted on the world’s stock exchanges.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 23

Global Value Equity Fund


Investment Holding

Investment Holding

FranceTotal 87,958 20,620,924 1.66Sanofi-Aventis 222,002 18,196,127 1.46BNP Paribas 222,979 15,212,254 1.22Lafarge 167,395 15,102,452 1.21


SwitzerlandNestlé Regd 93,576 23,868,270 1.91Novartis Regd 349,995 16,628,814 1.34UBS Regd 162,866 12,725,590 1.02Syngenta 119,441 12,176,949 0.98


NetherlandsRoyal Dutch Petroleum ‘NY’ 467,831 30,446,442 2.45Unilever ‘CVA’ 182,956 11,820,194 0.95Wolters Kluwer ‘CVA’ 478,662 9,098,584 0.73Koninklijke Philips Electronics 202,052 5,150,942 0.41


ItalyENI 910,809 23,208,415 1.87Telecom Italia ‘RNC’ 6,467,353 16,818,627 1.35


AustraliaNational Australia Bank 516,896 12,082,198 0.97Foster’s Group 1,943,037 7,855,053 0.63Boral 1,302,444 6,413,432 0.52


IrelandBank of Ireland 940,018 15,160,218 1.22Kerry Group ‘A’ 444,254 10,923,824 0.88


SpainTelefonica 821,229 13,472,110 1.09Banco Bilbao Vizcaya Argentaria 742,164 11,495,191 0.92


GermanyBASF 190,596 12,619,337 1.01Bayerische Motoren Werke 218,884 9,920,077 0.80


New ZealandTelecom Corp of New Zealand 2,936,500 12,251,495 0.98


BermudaXL Capital ‘A’ 161,146 11,977,982 0.96


South KoreaSK Telecom ADR 518,222 10,545,818 0.85


Hong KongHongkong Electric Holdings 1,563,000 7,138,272 0.58



Total NAV 1,244,633,778 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 24

Japanese Equity Growth Fund

Electronic Equipment & InstrumentsNidec 44,000 516,560,000 2.42Horiba 135,000 323,325,000 1.52Keyence 11,100 275,946,000 1.30Hoya 15,600 199,680,000 0.94Hirose Electric 14,700 179,487,000 0.84Canon Electronics 42,000 135,240,000 0.64Nippon Ceramic 79,000 128,770,000 0.61CMK 64,000 120,320,000 0.57Optex 45,400 118,948,000 0.56TDK 14,900 112,644,000 0.53A&D 58,000 99,702,000 0.47Tokyo Electron Device 352 98,912,000 0.47Murata Manufacturing 16,000 90,400,000 0.43Hagiwara Electric 48,600 76,302,000 0.36Yokogawa Electric 53,000 72,663,000 0.34Kyocera 8,500 72,080,000 0.34Macnica 26,100 72,036,000 0.34Toyo 55,800 71,200,800 0.34Arisawa Manufacturing 22,700 69,008,000 0.32Sumida 26,800 62,444,000 0.29Dainippon Screen Manufacturing 81,000 60,507,000 0.28Oki Electric Industry 149,000 58,259,000 0.27Yokowo 50,900 54,157,600 0.25Marubun 38,600 37,017,400 0.17Citizen Electronics 5,500 31,405,000 0.15

Total for Electronic Equipment & Instruments 14.75

ChemicalsTaiyo Ink Manufacturing 39,500 170,245,000 0.81Kaneka 125,000 155,625,000 0.74N E Chemcat 54,000 148,770,000 0.70Taiyo Kagaku 88,300 144,723,700 0.68C. Uyemura & Co 36,000 140,400,000 0.66T&K Toka 60,600 140,289,000 0.66JSP 80,400 98,731,200 0.46Fuso Chemical 22,900 96,180,000 0.45Fujikura Kasei 107,000 94,909,000 0.45Nippon Shokubai 76,000 68,856,000 0.32Stella Chemifa 26,400 66,000,000 0.31Natoco 48,700 59,901,000 0.28Asahi Denka Kogyo 49,000 57,820,000 0.27Tanaka Chemical 34,500 48,990,000 0.23

Total for Chemicals 7.02

Auto ComponentsDenso 97,100 245,177,500 1.16Musashi Seimitsu Industry 86,200 230,154,000 1.08Stanley Electric 113,300 203,940,000 0.96Yasunaga 91,000 101,738,000 0.48Nippon Cable System 51,500 71,173,000 0.33Tanaka Seimitsu Kogyo 17,600 66,704,000 0.31FuKoKu 64,600 64,212,400 0.31Kayaba Industry 126,000 46,494,000 0.22Tokai Rubber Industries 30,500 45,475,500 0.21Hitachi Powdered Metals 53,000 41,446,000 0.20

Total for Auto Components 5.26

Specialty RetailNitori 45,050 358,147,500 1.68Komeri 50,400 150,696,000 0.71Gigas K’s Denki 41,000 94,710,000 0.45Otsuka Kagu 35,900 93,878,500 0.44

I

A

B

10

8

6

4

2

0

9.19% 8.80% 8.29% 3.15%

I A B




TOPIX Index (expressed in Japanese Yen)

IX

AX

10

8

6

4

2

0

4.16% 4.10% 3.15%

IX AX





INVESTMENT AIMS

To seek long-term capital appreciation,measured in Yen, through investmentprimarily in the equity securities of growthorientated small, medium and large sizedcompanies domiciled in or exercising thepredominant part of their economic activity inJapan and which are listed on any exchangesor over the counter markets.

STATEMENT OF INVESTMENTSTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 30 June 2005, expressedin Japanese Yen.

Investment Holding



Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 25



STATEMENT OF INVESTMENTS (continued)Transferable securities admitted to official exchange listing or dealtin on another regulated market. As at 30 June 2005, expressedin Japanese Yen.

Investment Holding

Investment Holding

Specialty Retail (continued)Xebio 24,700 82,251,000 0.39Geo 221 60,333,000 0.28Bals 139 27,383,000 0.13

Total for Specialty Retail 4.08

Commercial Services & SuppliesArrk 107,000 570,310,000 2.68Studio Alice 39,300 92,551,500 0.44Daiseki 52,800 86,116,800 0.41Moc 107 42,479,000 0.20Kyoritsu Printing 35,000 17,150,000 0.08

Total for Commercial Services & Supplies 3.81

Electrical Components & EquipmentChiyoda Integre 80,100 216,270,000 1.02Japan Cash Machine 72,800 170,352,000 0.80Ushio 78,300 154,642,500 0.73Patlite 54,000 126,900,000 0.60Enplas 22,800 68,400,000 0.32Phoenix Electric 30,500 60,237,500 0.28Showa Shinku 5,600 4,832,800 0.02

Total for Electrical Components & Equipment 3.77

Real EstateUrban 90,600 388,674,000 1.82Kennedix 718 225,452,000 1.06Diamond City 28,200 103,494,000 0.49Wadakohsan 33,500 81,907,500 0.39

Total for Real Estate 3.76

IT ServicesNet One Systems 510 145,860,000 0.68Index 424 142,888,000 0.67Obic 7,300 137,459,000 0.65Niws 658 96,068,000 0.45CRC Solutions 44,000 84,392,000 0.40Digital Garage 173 75,428,000 0.36NTT Data 187 70,873,000 0.33Gigno System Japan 847 41,587,700 0.20

Total for IT Services 3.74

MachineryMiyachi 78,200 184,943,000 0.87Kokusai 127,000 170,180,000 0.80OSG 73,000 102,346,000 0.48Toyo Machinery & Metal 101,900 80,399,100 0.38Tosei Engineering 29,000 65,395,000 0.31Harmonic Drive Systems 67 63,650,000 0.30Tsubaki Nakashima 41,500 57,768,000 0.27Nitta 36,600 57,608,400 0.27Tsugami 97,000 52,089,000 0.25Shima Seiki Manufacturing 16,700 45,173,500 0.21Fuji Machine Manufacturing 24,500 31,360,000 0.15

Total for Machinery 4.29

AutomobileToyota Motor 98,500 391,045,000 1.84Honda Motor 41,100 224,817,000 1.06Yachiyo Industry 75,000 122,625,000 0.58

Total for Automobile 3.48

Hotels, Restaurants & LeisureSaint Marc 52,200 244,296,000 1.16Doutor Coffee 73,400 140,487,600 0.66Ichibanya 58,300 123,887,500 0.58Origin Toshu 62,700 123,205,500 0.58Global-Dining 58,800 45,511,200 0.21Joyfull 27,000 33,777,000 0.16

Total for Hotels, Restaurants & Leisure 3.35

Electric AppliancesMeiko Electronics 92,200 322,700,000 1.51Sony 78,900 301,398,000 1.42Sharp 38,000 65,892,000 0.31Nippon Antenna 22,000 20,460,000 0.10

Total for Electric Appliances 3.34

SoftwareNintendo 23,700 274,920,000 1.30Fuji Soft ABC 47,800 169,212,000 0.80Namco 70,800 104,500,800 0.49Zuken 76,200 87,706,200 0.41Core 43,400 53,642,400 0.25

Total for Software 3.25

Office ElectronicsRicoh 177,000 306,741,000 1.45Canon 42,900 250,536,000 1.18Canon Finetech 28,000 62,300,000 0.29

Total for Office Electronics 2.92

Food ProductsKibun Food Chemifa 91,500 256,200,000 1.22Ariake Japan 56,100 143,055,000 0.67Yutaka Foods 53,000 79,500,000 0.37Rock Field 45,200 76,388,000 0.36Yonekyu 40,500 54,067,500 0.25

Total for Food Product 2.87

Health Care Equipment & SuppliesNakanishi 28,700 320,292,000 1.51Sysmex 12,700 91,694,000 0.43Olympus 12,000 25,560,000 0.12

Total for Health Care Equipment & Supplies 2.06

PharmaceuticalsTakeda Pharmaceutical 42,600 234,300,000 1.10Rohto Pharmaceutical 54,000 77,814,000 0.37Seikagaku 62,900 76,171,900 0.36

Total for Pharmaceuticals 1.83

Trading Companies & DistributorsKuroda Electric 81,300 212,193,000 1.00Doshisha 20,500 78,105,000 0.37Impact 21 28,700 78,064,000 0.37IK 1 420,000 0.00

Total for Trading Companies & Distributors 1.74

Food & Staples RetailingAin Pharmaciez 94,900 213,050,500 1.00Matsumotokiyoshi 17,500 52,850,000 0.25Plant 37,000 51,726,000 0.24Sugi Pharmacy 15,300 50,796,000 0.24

Total for Food & Staples Retailing 1.73

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 26




Investment Holding

Investment Holding

Semiconductors and Semiconductor EquipmentTokyo Electron 21,500 126,205,000 0.59Japan Electronic Materials 66,200 97,314,000 0.46Lasertec 20,500 64,165,000 0.30Advantest 7,800 63,882,000 0.30

Total for Semiconductors and Semiconductor Equipment 1.65

Leisure Equipment & ProductsEndo Manufacturing 89,000 110,449,000 0.52Tomy 54,700 96,381,400 0.45Roland 29,300 55,582,100 0.26Yamaha 25,900 44,807,000 0.21

Total for Leisure Equipment & Products 1.44

ServicesWatabe Wedding 55,800 104,904,000 0.49Saison Information Systems 52,100 130,771,000 0.62SJ Holdings 767 67,189,200 0.32

Total for Services 1.43

SemiconductorsRohm 24,600 263,220,000 1.24

Total for Semiconductors 1.24

Air Freight & LogisticsYusen Air & Sea Service 63,100 258,710,000 1.22

Total for Air Freight & Logistics 1.22

MediaCyber Agent 247 122,265,000 0.58GDH KK 135 67,635,000 0.32Tohokushinsha Film 23,100 66,990,000 0.32

Total for Media 1.22

Road & RailAlps Logistics 99,400 237,069,000 1.12

Total for Road & Rail 1.12

Other ProductsTsutsumi Jewelry 33,000 96,195,000 0.46Heian Ceremony Service 82,300 64,605,500 0.30Gentosha 71 54,031,000 0.25

Total for Other Products 1.01

Textiles & ApparelSeiren 124,000 135,284,000 0.64Yamato International 83,000 58,017,000 0.27

Total for Textiles & Apparel 0.91

Multi-line RetailRyohin Keikaku 35,000 191,800,000 0.90

Total for Multi-line Retail 0.90

Wireless Telecommunication ServicesNTT DoCoMo 1,134 185,976,000 0.88

Total for Wireless Telecommunication Services 0.88

Metals & MiningNippon Metals & Mining 363,000 93,654,000 0.44Tocalo 39,400 89,832,000 0.42

Total for Metals & Mining 0.86

Personal ProductsMilbon 25,100 84,838,000 0.40Mandom 21,000 60,480,000 0.28

Total for Personal Products 0.68

Retail TradeCircle K Sunkus 41,700 104,041,500 0.49Palemo 26,400 33,264,000 0.16

Total for Retail Trade 0.65

Containers & PackagingFuji Seal International 35,900 126,368,000 0.59

Total for Containers & Packaging 0.59

Communications EquipmentNextCom KK 243 125,145,000 0.59

Total for Communications Equipment 0.59

Health Care Providers & ServicesNagaileben 47,200 94,400,000 0.44Nichii Gakkan 10,700 28,890,000 0.14

Total for Health Care Providers & Services 0.58

Food RetailBelc 38,000 91,960,000 0.43Maxvalu Tokai 6,900 18,768,000 0.09

Total for Food Retail 0.52

Glass & Ceramics ProductsNihon Ceratec 126 80,640,000 0.38

Total for Glass & Ceramics Products 0.38

Information & CommunicationSammy NetWorks 44 66,440,000 0.31Toyo Business Engineering 5,800 8,236,000 0.04

Total for Information & Communication 0.35

Gas UtilitiesShizuoka Gas 125,000 71,125,000 0.33

Total for Gas Utilities 0.33

Wholesale TradeFuji Electronics 34,800 66,189,600 0.31

Total for Wholesale Trade 0.31

Computer Storage & PeripheralsToshiba 142,000 62,764,000 0.30

Total for Computer Storage & Peripherals 0.30

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 27




Investment Holding

Hotels, Restaurants & LeisureTMS Entertainment 70,000 53,900,000 0.25

Total for Hotels, Restaurants & Leisure 0.25

Construction & EngineeringNEC System Integration & Construction 52,700 52,594,600 0.25

Total for Construction & Engineering 0.25

DistributorsPaltac 17,000 36,890,000 0.17

Total for Distributors 0.17

Computer HardwareFujitsu 63,000 36,666,000 0.17

Total for Computer Hardware 0.17


Total NAV 21,246,395,092 100.00

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 28



Japanese Value Equity Fund

ChemicalsKaneka 1,030,000 1,282,350,000 2.24Denki Kagaku Kogyo Kabushiki Kaisha 2,180,000 869,820,000 1.51Daicel Chemical Industries 1,473,000 860,232,000 1.49Mitsubishi Chemical 2,500,000 812,500,000 1.41Teijin 1,470,000 757,050,000 1.31Shin-Etsu Polymer 717,000 633,828,000 1.10NIFCO 357,200 601,524,800 1.04Lintec 289,200 516,800,400 0.90Toyo INK Manufacturing 1,219,000 513,199,000 0.89


AutomobilesNissan Motor 1,707,300 1,874,615,400 3.25Toyota Motor 471,200 1,870,664,000 3.25Yamaha Motor 437,200 889,702,000 1.54Suzuki Motor 498,100 868,188,300 1.51

Total for Automobiles 9.55

MachineryKurita Water Industries 523,700 897,098,100 1.56Mitsubishi Heavy Industries 3,011,000 873,190,000 1.52Daifuku 730,000 767,230,000 1.33Amada 889,000 671,195,000 1.17Minebea 1,450,000 649,600,000 1.13Tsubakimoto Chain 1,240,000 642,320,000 1.11Fuji Machine Manufacturing 193,600 247,808,000 0.43Fujitec 316,000 181,068,000 0.31

Total for Machinery 8.56

Electronic Equipment & InstrumentsHitachi 2,100,000 1,415,400,000 2.45Kyocera 140,000 1,187,200,000 2.06TDK 150,000 1,134,000,000 1.97Ryosan 188,200 498,730,000 0.87

Total for Electronic Equipment & Instruments 7.35

Electrics AppliancesMatsushita Electric Industrial 1,050,000 1,767,150,000 3.06Sony 296,800 1,133,776,000 1.97Casio Computer 610,600 885,370,000 1.54

Total for Electrics Appliances 6.57

PharmaceuticalsAstellas Pharma 320,000 1,212,800,000 2.10Sankyo 496,800 1,058,184,000 1.84Ono Pharmaceutical 200,500 1,054,630,000 1.83


Office ElectronicsCanon 310,000 1,810,400,000 3.14Ricoh 800,000 1,386,400,000 2.41

Total for Office Electronics 5.55

Computers & PeripheralsNEC 2,150,000 1,290,000,000 2.24Fujitsu 2,180,000 1,268,760,000 2.20

Total for Computers & Peripherals 4.44

I

A

B

4

3

2

1

0

2.51% 2.15% 1.64% 3.15%

I A B





IX

AX

4

3

2

1

0

2.26% 2.20% 3.15%

IX AX





INVESTMENT AIMS

To seek long-term capital appreciation,measured in Yen, through investment in the securities of companies listed on the exchanges and over-the-counter marketsin Japan.

STATEMENT OF INVESTMENTSTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 30 June 2005, expressedin Japanese Yen.


value% of net

assets

952347-1-007 x-cat 8/22/05 17:51 Page 29


Japanese Value Equity Fund


Investment Holding

Investment Holding

Household DurablesSekisui Chemical 1,200,000 916,800,000 1.59Sekisui House 770,000 863,170,000 1.50Rinnai 117,800 322,183,000 0.56

Total for Household Durables 3.65

Trading Companies & DistributorsMitsubishi 900,000 1,357,200,000 2.36Hitachi High-Technologies 214,500 363,148,500 0.63Nagase & Company 297,000 336,204,000 0.58


Computer Storage & PeripheralsToshiba 3,000,000 1,326,000,000 2.30Mitsumi Electric 600,000 685,800,000 1.19


Building ProductsDaikin Industries 420,500 1,166,887,500 2.03Sanwa Shutter 928,000 592,992,000 1.03

Total for Building Products 3.06

Home Entertainment SoftwareNintendo 120,000 1,392,000,000 2.42

Total for Home Entertainment Software 2.42

Construction & EngineeringObayashi 1,400,000 835,800,000 1.45Kyudenko 332,000 222,108,000 0.39Maeda Road Construction 256,000 202,496,000 0.35Sanki Engineering 106,000 83,740,000 0.15


Leisure Equipment & ProductsFuji Photo Film 356,100 1,271,277,000 2.21

Total for Leisure Equipment & Products 2.21

Commercial Services & SuppliesDai Nippon Printing 516,000 922,092,000 1.60Nissha Printing 145,000 276,805,000 0.48

Total for Commercial Services & Supplies 2.08

Leisure ProductsYamaha 540,000 934,200,000 1.62

Total for Leisure Products 1.62

Road & RailEast Japan Railway 1,600 912,000,000 1.58

Total for Road & Rail 1.58

Food & Staples RetailingFamilymart 281,200 894,216,000 1.55

Total for Food & Staples Retailing 1.55

Food ProductsNippon Meat Packers 440,000 567,160,000 0.98House Foods 190,000 311,600,000 0.54

Total for Food Products 1.52

Semiconductors & Semiconductor EquipmentRohm 80,600 862,420,000 1.50

Total for Semiconductors & Semiconductor Equipment 1.50

Diversified Telecommunication ServicesNippon Telegraph & Telephone 1,733 823,175,000 1.43

Total for Diversified Telecommunication Services 1.43

Real EstateMitsubishi Estate 668,000 815,628,000 1.42

Total for Real Estate 1.42

Electric UtilitiesTokyo Electric Power 298,400 789,268,000 1.37

Total for Electric Utilities 1.37

Electrical EquipmentFurukawa Electric 1,760,000 756,800,000 1.31

Total for Electrical Equipment 1.31

Consumer FinanceHitachi Capital 323,200 709,424,000 1.23

Total for Consumer Finance 1.23

Textiles, Apparel & Luxury GoodsNisshinbo Industries 588,000 533,904,000 0.93

Total for Textiles, Apparel & Luxury Goods 0.93

MediaToho 174,300 278,880,000 0.48

Total for Media 0.48

Transportation InfrastructureMitsubishi Logistics 106,000 120,310,000 0.21

Total for Transportation Infrastructure 0.21


Total NAV 57,608,218,090 100.00

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 30



Latin American Equity Fund

BrazilCompanhia Vale do Rio Doce ADR Pfd ‘A’ 1,061,576 26,804,794 7.76Petroleo Brasileiro ADR Pfd 412,679 19,057,516 5.52Petroleo Brasileiro ADR 273,025 14,317,431 4.15Unibanco GDR 281,400 10,662,246 3.08Banco Itau Holding Financeira ADR Pfd 113,307 10,404,982 3.01Banco Bradesco ADR Pfd 234,276 8,269,943 2.39Bradespar Pfd 441,810 7,502,611 2.17Companhia Energetica de Minas Gerais ADR non-vtg Pfd 224,990 6,979,190 2.02Embratel Participaçoes Pfd 3,097,053,073 6,442,607 1.86Empresa Brasileira de Aeronautica ADR Pfd 193,360 6,384,747 1.85Banco Itau Holding Financeira Pfd 30,429 5,592,193 1.62Caemi Mineracao e Metalurgica Pfd 5,255,930 4,864,329 1.41Telesp Celular Participaçoes ADR Pfd 999,860 4,339,392 1.26Banco Bradesco Pfd 116,324 4,130,971 1.20Telesp Celular Participacoes Pfd 949,160 4,126,257 1.19Tele Norte Leste Participacoes 158,000 3,604,721 1.04Companhia de Concessoes Rodoviarias 149,360 3,458,963 1.00CPFL Energia 426,300 3,375,290 0.98Companhia Vale do Rio Doce Pfd ‘A’ 114,697 2,889,946 0.84Gol Linhas Aereas Inteligentes ADR 91,940 2,736,134 0.79Gerdau Pfd 274,500 2,613,897 0.76Companhia Siderurgica Nacional ADR 158,288 2,586,426 0.75Gerdau ADR Pfd 244,868 2,353,181 0.68CPFL Energia ADR 96,410 2,316,732 0.67Braskem ADR 116,500 1,951,375 0.56Unibanco - União de Bancos Brasileiros 256,804 1,946,063 0.56All America Latina Logistica Pfd 59,500 1,768,202 0.51Tim Participaçoes Pfd 1,066,058,520 1,674,556 0.48Natura Cosmeticos 49,609 1,569,249 0.45Tim Participaçoes ADR 90,200 1,427,866 0.41Klabin Pfd 812,700 1,366,288 0.40Suzano Bahia Sul Papel e Celulose Pfd 298,700 1,217,372 0.35Gerdau 100,980 809,812 0.23Braskem Pfd ‘A’ 43,198 363,116 0.11Companhia Siderurgica Nacional 16,984 279,690 0.08Companhia Energetica de Minas Gerais Pfd 3,865,725 119,640 0.03Brasil Telecom Pfd 3,213,033 13,736 0.00


MexicoAmerica Movil ADR ‘L’ 443,409 26,560,199 7.68Wal-Mart de Mexico ‘V’ 6,354,891 26,011,873 7.53Grupo Televisa ADR 325,330 20,170,460 5.84America Telecom ‘A1’ 5,033,540 16,113,327 4.66Fomento Economico Mexicano ADR 171,040 10,122,147 2.93Grupo Financiero Banorte ‘O’ 1,128,060 7,511,122 2.17Kimberly-Clark de Mexico ‘A’ 1,941,550 6,665,420 1.93Cemex ‘CPO’ 907,578 3,919,409 1.13Grupo Mexico ‘B’ 2,109,590 3,529,815 1.02Grupo Aeroportuario del Sureste ADR ‘B’ 95,140 3,020,695 0.87Urbi Desarrollos Urbanos 521,300 2,863,819 0.83Empresas ICA Sociedad Controledora 6,175,600 2,530,100 0.73Organizacion Soriana ‘B’ 404,190 1,690,938 0.49Cemex ADR ‘CPO’ 25,565 1,103,385 0.32Wal-Mart de Mexico ADR ‘V’ 3,306 135,546 0.04


ChileEnersis ADR 1,243,550 13,231,373 3.83


I

A

B

10.02% 9.62% 9.07% 11.36%12

10

8

6

4

2

0I A B




MSCI EMF Latin American Index (expressed in US dollars)


INVESTMENT AIMS

To seek to maximise total return, measured in US Dollars, through investment primarily in the common shares of companiesincorporated in Latin American countries.



value% of net

assets

952347-1-007 x-cat 8/22/05 17:51 Page 31


Latin American Equity Fund


Investment Holding

ArgentinaTenaris ADR 75,540 6,003,919 1.74


ColombiaBanColombia ADR Pfd 245,880 3,931,622 1.14


PeruCompanhia de Minas Buenaventura ADR 79,190 1,834,833 0.53Southern Peru Copper 26,300 1,145,102 0.33

Total for Peru 0.86

Total Transferable securities admitted to official exchange listing or dealt in on another regulated market 97.91


BrazilBanco Nacional Pfd (1) 2,698,000 0 0.00Lojas Arapua GDR 144A Pfd (1) 10,180 0 0.00Lojas Arapua Pfd (1) 58,205,100 0 0.00




Total NAV 345,652,484 100.00


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 32


US Equity Fund

Industrial ConglomeratesGeneral Electric 159,336 5,576,760 3.343M 58,976 4,484,535 2.69Tyco International 91,953 2,695,142 1.62

Total for Industrial Conglomerates 7.65

PharmaceuticalsWyeth 75,505 3,359,217 2.01Johnson & Johnson 46,609 3,062,211 1.84Pfizer 69,281 1,928,783 1.16Abbott Laboratories 36,777 1,810,532 1.09Novo-Nordisk ADR 33,317 1,702,166 1.02


Aerospace & DefenseUnited Technologies 92,600 4,862,426 2.92Precision Castparts 20,985 1,659,914 1.00Northrop Grumman 22,250 1,239,993 0.74

Total for Aerospace & Defense 4.66

Communications EquipmentCorning 149,900 2,524,316 1.51Juniper Networks 83,833 2,115,107 1.27Qualcomm 53,454 1,792,847 1.08Andrew 49,983 640,282 0.38


Integrated Oil & GasExxon Mobil 54,833 3,204,441 1.92BP ADR 38,068 2,419,221 1.45Total ADR 9,596 1,125,419 0.68

Total for Integrated Oil & Gas 4.05

Diversified BanksBank of America 104,557 4,904,769 2.94U.S. Bancorp 55,151 1,619,785 0.97

Total for Diversified Banks 3.91

Oil & Gas Exploration & ProductionApache 53,154 3,438,001 2.06XTO Energy 74,261 2,511,507 1.51

Total for Oil & Gas Exploration & Production 3.57

General Merchandise StoresTarget 103,341 5,673,421 3.40

Total for General Merchandise Stores 3.40

SemiconductorsIntel 97,500 2,559,375 1.53Marvell Technology Group 45,793 1,759,825 1.06Texas Instruments 42,638 1,203,244 0.72



(0.64)% (0.93)% (1.41)% (0.81)%0.0

-0.3

-0.6

-0.9

-1.2

-1.5I A B

I

A

B




S&P 500 Index (expressed in US dollars)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in US Dollars, through investmentprimarily in equity securities of medium tolarge sized US companies.



value% of net

assets

952347-1-007 x-cat 8/22/05 17:51 Page 33

US Equity Fund



Investment Holding

Investment Holding

Investment Banking & BrokerageMerrill Lynch & Co 44,410 2,471,861 1.47Goldman Sachs Group 15,668 1,610,514 0.97Lehman Brothers Holdings 8,500 842,690 0.51

Total for Investment Banking & Brokerage 2.95

Computer HardwareDell 83,760 3,315,221 1.99Apple Computer 42,267 1,537,251 0.92


Drug RetailCVS 150,880 4,437,381 2.66

Total for Drug Retail 2.66

Soft DrinksPepsiCo 75,924 4,132,543 2.48

Total for Soft Drinks 2.48

Other Diversified Financial ServicesCitigroup 87,001 4,069,907 2.44

Total for Other Diversified Financial Services 2.44

Health Care EquipmentMedtronic 30,686 1,601,809 0.96Fisher Scientific International 21,934 1,419,568 0.85Hospira 26,362 1,033,127 0.62

Total for Health Care Equipment 2.43

Life & Health InsuranceMetLife 37,000 1,681,650 1.01Prudential Financial 17,683 1,172,383 0.70Lincoln National 24,000 1,134,720 0.68

Total for Life & Health Insurance 2.39

Personal ProductsAvon Products 62,904 2,395,384 1.44Estee Lauder Companies ‘A’ 30,914 1,200,700 0.72


Publishing & PrintingNews ‘B’ 114,700 1,970,546 1.18McGraw-Hill Companies 34,600 1,535,548 0.92

Total for Publishing & Printing 2.10

Electric UtilitiesExelon 64,070 3,243,223 1.95


Systems SoftwareMicrosoft 98,321 2,466,874 1.48

Total for Systems Software 1.48

Health Care SuppliesAlcon 21,301 2,336,720 1.40

Total for Health Care Supplies 1.40

Oil & Gas Equipment & ServicesHalliburton 26,491 1,269,714 0.76Schlumberger 13,800 1,058,874 0.64

Total for Oil & Gas Equipment & Services 1.40

TobaccoAltria Group 34,563 2,250,051 1.35

Total for Tobacco 1.35

Managed Health CareUnitedHealth Group 41,968 2,230,180 1.34

Total for Managed Health Care 1.34

Household ProductsProcter & Gamble 37,540 2,007,264 1.20

Total for Household Products 1.20

BrewersAnheuser Busch 43,142 1,979,355 1.19

Total for Brewers 1.19

Consumer FinanceAmerican Express 30,900 1,653,459 0.99MBNA 14,700 309,435 0.19


Textiles, Apparel & Luxury GoodsNike ‘B’ 21,456 1,873,538 1.12

Total for Textiles, Apparel & Luxury Goods 1.12

Diversified Capital MarketsJ.P. Morgan Chase & Co 49,840 1,792,246 1.08

Total for Diversified Capital Markets 1.08

Health Care ServicesCaremark Rx 39,228 1,739,370 1.04

Total for Health Care Services 1.04

Fertilizers & Agricultural ChemicalsMonsanto 26,231 1,652,553 0.99

Total for Fertilizers & Agricultural Chemicals 0.99

BiotechnologyGenentech 20,400 1,650,768 0.99

Total for Biotechnology 0.99

Capital MarketsUBS Regd 19,521 1,527,323 0.92

Total for Capital Markets 0.92

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 34


US Equity Fund


Investment Holding

Investment Holding

Home Improvement RetailHome Depot 39,200 1,520,960 0.91

Total for Home Improvement Retail 0.91

Casinos & GamingLas Vegas Sands 20,000 731,200 0.44Wynn Resorts 13,076 647,131 0.39

Total for Casinos & Gaming 0.83

Specialty ChemicalsRohm & Haas 29,688 1,374,554 0.82

Total for Specialty Chemicals 0.82

Application SoftwareSAP ADR Pfd 31,635 1,369,479 0.82

Total for Application Software 0.82

Specialty StoresPetsmart 44,500 1,351,020 0.81

Total for Specialty Stores 0.81

RestaurantsOutback Steakhouse 28,608 1,288,218 0.77

Total for Restaurants 0.77

Internet Software & ServicesYahoo! 36,624 1,279,643 0.77

Total for Internet Software & Services 0.77

Gas UtilitiesQuestar 18,800 1,238,920 0.74


Diversified ChemicalsDow Chemical 26,900 1,215,880 0.73

Total for Diversified Chemicals 0.73

Data Processing & Outsourced ServicesFirst Data 29,500 1,181,475 0.71

Total for Data Processing & Outsourced Services 0.71

Internet RetaileBay 30,200 993,579 0.60

Total for Internet Retail 0.60

Thrifts & Mortgage FinanceFreddie Mac 13,600 886,720 0.53

Total for Thrifts & Mortgage Finance 0.53

Hotels Resorts & Cruise LinesCarnival 15,700 863,970 0.53

Total for Hotels Resorts & Cruise Lines 0.53

Multi-line InsuranceAmerican International Group 14,300 836,263 0.51

Total for Multi-line Insurance 0.51

Asset Management & Custody BanksMellon Financial 26,678 766,993 0.46

Total for Asset Management & Custody Banks 0.46

Property & Casualty InsuranceProgressive 3,300 323,334 0.19

Total for Property & Casualty Insurance 0.19


Total NAV 166,701,185 100.00

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 35



US Equity Growth Fund

Internet Software & ServicesGoogle ‘A’ 45,310 13,263,143 4.70Yahoo! 230,500 8,053,670 2.86


Wireless Telecommunication ServicesAmerica Movil ADR ‘L’ 148,600 8,901,140 3.16Nextel Communications ‘A’ 131,900 4,265,646 1.51Crown Castle International 187,005 3,788,721 1.35


Diversified Commercial ServicesApollo Group ‘A’ 106,300 8,389,196 2.98Corporate Executive Board 75,500 5,925,995 2.10

Total for Diversified Commercial Services 5.08

Internet RetaileBay 300,380 9,882,502 3.51Amazon.Com 112,200 3,741,870 1.33


Casinos & GamingInternational Game Technology 240,800 6,862,800 2.44Station Casinos 49,020 3,311,301 1.18Wynn Resorts 54,285 2,686,565 0.95


Managed Health CareUnitedHealth Group 198,848 10,566,783 3.75

Total for Managed Health Care 3.75

Computer HardwareDell 264,080 10,452,286 3.71


Hotels Resorts & Cruise LinesCarnival 179,600 9,883,388 3.51


Communications EquipmentQualcomm 189,682 6,361,934 2.26Corning 172,100 2,898,164 1.03


Other Diversified Financial ServicesChicago Mercantile Exchange Holdings 20,990 6,421,891 2.28Citigroup 60,022 2,807,829 1.00


Hypermarkets & Super CentersCostco Wholesale 198,600 8,974,734 3.19

Total for Hypermarkets & Super Centers 3.19

(0.03)% (0.46)% (0.95)% (1.72)%0

-0.5

-1.0

-1.5

-2.0I A B

I

A

B




Russell 1000 Growth Index (expressed in US dollars)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in US Dollars, through investmentprincipally in growth oriented common stocksof large capitalisation US corporations and, to a limited extent, foreign corporations.



value% of net

assets

952347-1-007 x-cat 8/22/05 17:51 Page 36




Investment Holding

Investment Holding

General Merchandise StoresSears Holdings 58,400 8,820,152 3.13


Home Improvement RetailHome Depot 214,575 8,325,510 2.96

Total for Home Improvement Retail 2.96

Home Entertainment SoftwareElectronic Arts 144,400 8,190,368 2.91

Total for Home Entertainment Software 2.91

Fertilizers & Agricultural ChemicalsMonsanto 126,890 7,994,070 2.84

Total for Fertilizers & Agricultural Chemicals 2.84

AdvertisingGetty Images 66,107 4,915,717 1.74Lamar Advertising ‘A’ 65,600 2,809,648 1.00

Total for Advertising 2.74

Oil & Gas Exploration & ProductionUltra Petroleum 255,780 7,604,339 2.70


Health Care EquipmentSt Jude Medical 104,700 4,612,035 1.64Guidant 43,900 2,963,250 1.05


BiotechnologyGenentech 93,600 7,574,112 2.69


Health Care SuppliesAlcon 68,800 7,547,360 2.68


ReinsuranceBerkshire Hathaway ‘B’ 1,782 4,936,140 1.75

Total for Reinsurance 1.75

Multi-Sector HoldingsBrascan ‘A’ 115,200 4,400,640 1.56

Total for Multi-Sector Holdings 1.56

Motorcycle ManufacturersHarley-Davidson 85,700 4,281,572 1.52

Total for Motorcycle Manufacturers 1.52

PharmaceuticalsJohnson & Johnson 64,384 4,230,029 1.50


HomebuildingPulte Homes 50,700 4,220,268 1.50

Total for Homebuilding 1.50

SemiconductorsMarvell Technology Group 107,920 4,147,366 1.47


Gas UtilitiesQuestar 56,200 3,703,580 1.32


Packaged Foods & MeatsWM Wrigley Jr 53,400 3,673,920 1.30

Total for Packaged Foods & Meats 1.30

Specialized FinanceMoody’s 80,600 3,647,150 1.30

Total for Specialized Finance 1.30

Air Freight & LogisticsC.H. Robinson Worldwide 60,915 3,564,746 1.27

Total for Air Freight & Logistics 1.27

Diversified Metals & MiningCameco 69,900 3,130,122 1.11

Total for Diversified Metals & Mining 1.11

Personal ProductsGillette 61,000 3,126,250 1.11


Data Processing & Outsourced ServicesPaychex 86,955 2,856,472 1.01


Insurance BrokersMarsh & McLennan Companies 102,500 2,833,100 1.01

Total for Insurance Brokers 1.01

RestaurantsStarbucks 53,800 2,806,746 1.00


Health Care DistributorsPatterson Companies 63,000 2,797,200 0.99

Total for Health Care Distributors 0.99



Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 37




Investment Holding

Application SoftwareRed Hat 166,500 2,169,495 0.77


Household ProductsProcter & Gamble 37,360 1,997,638 0.71


Computer Storage & PeripheralsShanda Interactive Entertainment ADR 52,900 1,957,829 0.70Seagate Technology Regd (1) 169,100 0 0.00



Total NAV 281,601,002 100.00


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 38


US Property Fund

Real Estate Investment TrustsSimon Property Group 206,665 14,960,478 8.81Boston Properties 134,440 9,303,248 5.47Avalonbay Communities 92,984 7,452,668 4.39Archstone-Smith Trust 185,271 7,118,112 4.20Host Marriott 389,610 6,806,487 4.01Regency Centers 96,350 5,486,169 3.23Macerich 77,510 5,217,973 3.08Federal Realty Investment Trust 86,380 5,118,879 3.02Public Storage 80,669 5,070,047 2.99AMB Property 111,390 4,809,820 2.83Vornado Realty Trust 53,855 4,312,170 2.54Shurgard Storage Centers ‘A’ 90,871 4,189,153 2.47Equity Residential Properties Trust 101,424 3,743,560 2.21Catellus Development 109,565 3,609,071 2.13Arden Realty 99,645 3,539,390 2.09Mack-Cali Realty 76,440 3,481,078 2.05Equity Office Properties Trust 92,922 3,089,657 1.82Reckson Associates Realty 91,040 3,036,184 1.79Essex Property Trust 36,250 3,016,000 1.78Taubman Centers 85,090 2,884,551 1.70Post Properties 77,945 2,821,609 1.66SL Green Realty 43,210 2,752,045 1.62Senior Housing Properties Trust 139,795 2,656,105 1.57Equity Lifestyle Properties 59,790 2,387,415 1.41Trizec Properties 88,085 1,774,913 1.05Prentiss Properties Trust 42,070 1,537,659 0.91PS Business Parks 34,795 1,533,416 0.90Brandywine Realty Trust 48,255 1,474,673 0.87General Growth Properties 35,175 1,433,381 0.84BRE Properties ‘A’ 31,820 1,330,076 0.78Omega Healthcare Investors 74,820 980,142 0.58Meristar Hospitality 110,105 959,015 0.57Heritage Property Investment Trust 27,270 957,722 0.56Developers Diversified Realty 20,355 936,330 0.55Acadia Realty Trust 39,700 735,244 0.43Gables Residential Trust 14,600 632,180 0.37LTC Properties 29,325 609,667 0.36ProLogis 14,690 591,126 0.35Correctional Properties Trust 19,620 564,075 0.33Health Care Property Investors 18,470 497,582 0.29Spirit Finance 21,400 247,812 0.15Capital Automotive 6,100 231,190 0.14Pan Pacific Retail Properties 2,230 148,429 0.09Ramco-Gershenson Properties 1,200 34,980 0.02Highwoods Properties 900 26,766 0.02Windrose Medical Properties Trust 1,500 20,910 0.01Sunrise Senior Living Real Estate Investment Trust 100 1,014 0.00

Total for Real Estate Investment Trusts 79.04

Hotels Resorts & Cruise LinesStarwood Hotels & Resorts Worldwide 145,580 8,494,592 5.01Hilton Hotels 290,912 6,984,797 4.12Lodgian 26,800 278,452 0.16


Real Estate Management & DevelopmentBrookfield Properties 314,502 9,035,642 5.33Forest City Enterprises ‘A’ 21,790 1,534,669 0.90American Campus Communities 23,590 533,134 0.31Amli Residential Properties Trust 9,900 309,276 0.18

Total for Real Estate Management & Development 6.72


I

A

B

8

6

4

2

0

7.22% 6.84% 6.31% 6.38%

I A B




NAREIT (Equity) Index (expressed in US dollars)

IX

AX

8

6

4

2

0

5.42% 5.36% 6.38%

IX AX



NAREIT (Equity) Index (expressed in US dollars)


INVESTMENT AIMS

To seek to provide above average currentincome and long-term capital appreciation,measured in US Dollars, by investing in equitysecurities of companies in the US real estateindustry.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 39


US Property Fund

STATEMENT OF INVESTMENTS (continued)Other transferable securities not admitted to official exchange listingor dealt in on another regulated market. As at 30 June 2005,expressed in US dollars.

Investment Holding

Hotels Resorts & Cruise LinesWyndham International Series B CV Pfd (1) 26,338 1,834,730 1.08Wyndham International Series II Pfd (1) 14,540 1,012,851 0.60


Real Estate Investment TrustsBeacon Capital Partners (1) 215,700 925,277 0.55

Total for Real Estate Investment Trusts 0.55

Real Estate Management & DevelopmentAtlantic Gulf Communities SerB CV Pfd (1) 38,385 0 0.00Atlantic Gulf Communities priv plmt (1) 54,017 0 0.00




Total NAV 169,676,480 100.00


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 40


US Small Cap Growth Fund

Diversified Commercial ServicesAdvisory Board (The) 118,150 5,829,521 2.41Strayer Education 50,364 4,330,800 1.79Corporate Executive Board 49,998 3,924,343 1.62Bright Horizons Family Solutions 51,400 2,107,400 0.87Morningstar 74,500 2,045,025 0.85Coinstar 85,400 1,902,712 0.79Bankrate 24,550 475,534 0.2051job ADR 1,200 15,240 0.01


Oil & Gas Exploration & ProductionQuicksilver Resources 105,100 6,745,318 2.79Southwestern Energy 134,400 6,312,768 2.61Range Resources 135,100 3,669,316 1.52PetroHawk Energy 109,600 1,176,008 0.49Gasco Energy 289,100 1,107,253 0.46


Health Care EquipmentDade Behring Holdings 93,153 5,960,860 2.46American Medical Systems Holdings 110,600 2,319,282 0.96Animas 93,450 1,861,524 0.77Idexx Laboratories 30,900 1,810,431 0.75Gen-Probe 46,852 1,705,413 0.71


Casinos & GamingWMS Industries 159,551 5,297,093 2.19Penn National Gaming 137,100 5,019,231 2.08Shuffle Master 109,730 3,129,500 1.30


Application SoftwareSalesforce.com 186,200 3,878,546 1.61THQ 80,300 2,408,197 1.00Micros Systems 49,500 2,278,485 0.94Blackboard 54,700 1,287,091 0.53SkillSoft ADR 246,954 876,687 0.36


Internet Software & ServicesAkamai Technologies 187,600 2,510,088 1.04CNET Networks 166,978 1,776,646 0.74NetFlix 105,500 1,723,870 0.71Netease.com ADR 29,600 1,698,744 0.70Sina 58,900 1,655,679 0.69Intermix Media 137,800 1,211,262 0.50


RestaurantsP.F. Chang’s China Bistro 60,006 3,534,953 1.46BJ’s Restaurants 114,414 2,283,703 0.95Ihop 38,700 1,696,608 0.70AFC Enterprises 119,470 1,605,677 0.66Steak N Shake 11,498 213,863 0.09



4.66% 4.28% 3.77% (3.58)%5

4

3

2

1

0

-1

-2

-3

-4I A B

I

A

B




Russell 2000 Growth Index (expressed in US dollars)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in US Dollars, by investing primarilyin the common shares of small and mediumsized US companies and to a limited extentforeign corporations that are early in their lifecycle, but which have potential to becomemajor enterprises (emerging growthcompanies).



value% of net

assets

952347-1-007 x-cat 8/22/05 17:51 Page 41




Investment Holding

Investment Holding

Investment Banking & BrokerageGreenhill & Co 126,407 5,185,215 2.14Calamos Asset Management ‘A’ 98,300 2,746,502 1.14


Hotels Resorts & Cruise LinesKerzner International 75,936 4,297,978 1.78Great Wolf Resorts 149,600 2,992,000 1.24


Internet RetailBlue Nile 124,800 4,019,808 1.67Overstock.com 57,900 2,062,977 0.85Priceline.com 52,300 1,188,256 0.49


Specialty StoresTractor Supply 65,657 3,202,092 1.32Guitar Center 38,150 2,239,405 0.93Build-A-Bear Workshop 74,100 1,747,278 0.72Citi Trends 3,700 64,639 0.03

Total for Specialty Stores 3.00

Computer Storage & PeripheralsShanda Interactive Entertainment ADR 68,300 2,527,783 1.05Avid Technology 40,350 2,183,339 0.90Transact Technologies 56,375 485,389 0.20


Leisure FacilitiesGaylord Entertainment 108,400 5,046,020 2.09

Total for Leisure Facilities 2.09

Apparel Accessories & Luxury GoodsCarter’s 71,150 4,204,965 1.74PlanetOut 66,600 598,734 0.25

Total for Apparel Accessories & Luxury Goods 1.99

Semiconductor EquipmentTessera Technologies 142,800 4,783,800 1.98

Total for Semiconductor Equipment 1.98

DistributorsSCP Pool 132,062 4,605,002 1.91


Health Care ServicesStericycle 78,152 3,946,676 1.64Eclipsys 40,000 583,200 0.24

Total for Health Care Services 1.88

Electronic Equipment ManufacturersFlir Systems 78,700 2,390,119 0.99Dionex 49,426 2,093,191 0.87

Total for Electronic Equipment Manufacturers 1.86

Construction MaterialsFlorida Rock Industries 34,290 2,468,880 1.02Eagle Materials 19,500 1,768,260 0.73

Total for Construction Materials 1.75

HomebuildingDesarrolladora Homex ADR 83,400 2,301,840 0.96Meritage Homes 22,300 1,772,850 0.73

Total for Homebuilding 1.69

Wireless Telecommunication ServicesSpectrasite 51,650 3,816,935 1.58


Trading Companies & DistributorsBeacon Roofing Supply 69,300 2,009,700 0.83Nuco2 60,100 1,563,201 0.65


TruckingLandstar System 115,000 3,454,600 1.43

Total for Trucking 1.43

Home FurnishingsTuesday Morning 107,001 3,380,162 1.40

Total for Home Furnishings 1.40

Health Care FacilitiesVCA Antech 139,804 3,317,549 1.37

Total for Health Care Facilities 1.37

Construction & EngineeringMacquarie Infrastructure Co Trust 115,100 3,268,840 1.35


Broadcasting & Cable TVCKX 175,000 2,231,250 0.92Lodgenet Entertainment 56,800 962,192 0.40

Total for Broadcasting & Cable TV 1.32

Movies & EntertainmentLions Gate Entertainment 157,600 1,743,056 0.73Lakes Entertainment 85,700 1,433,761 0.59

Total for Movies & Entertainment 1.32

Industrial MachineryActuant ‘A’ 37,600 1,828,864 0.76Middleby 25,000 1,340,500 0.55

Total for Industrial Machinery 1.31

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 42




Investment Holding

Investment Holding

General Merchandise StoresYankee Candle 97,400 3,144,072 1.30


Real Estate Management & DevelopmentJones Lang LaSalle 35,400 1,576,008 0.66Housevalues 69,600 1,265,328 0.52


Packaged Foods & MeatsTreehouse Foods 85,000 2,409,750 1.00Rocky Mountain Chocolate Factory 12,700 281,559 0.12


Wireless Telecommunication ServicesSBA Communications 178,575 2,492,907 1.03


BiotechnologyTechne 53,000 2,427,400 1.00


Soft DrinksPeet’s Coffee & Tea 69,100 2,328,670 0.96


Paper ProductsNeenah Paper 74,100 2,323,035 0.96

Total for Paper Products 0.96

PharmaceuticalsNoven Pharmaceuticals 69,050 1,220,804 0.51Flamel Technologies ADR 59,033 1,087,388 0.45


Health Care SuppliesSybron Dental Specialties 62,800 2,306,016 0.95


Construction & Farm Machinery & Heavy TrucksWashington Group International 33,900 1,753,647 0.73Chicago Bridge & Iron ‘NY’ 352 7,909 0.00

Total for Construction & Farm Machinery & Heavy Trucks 0.73

Property & Casualty InsuranceMarkel 4,966 1,661,126 0.69


Publishing & PrintingInteractive Data 76,115 1,541,329 0.64


Apparel RetailEddie Bauer Holdings 10,600 289,910 0.12

Total for Apparel Retail 0.12


Total NAV 241,559,812 100.00

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 43



US Value Equity Fund

PharmaceuticalsGlaxoSmithKline ADR 1,804,600 88,064,480 5.12Bristol-Myers Squibb 2,742,400 69,135,904 4.02Pfizer 1,137,600 31,670,784 1.84Schering-Plough 1,388,500 27,242,370 1.58Wyeth 512,500 22,801,125 1.32Sanofi-Aventis ADR 287,300 11,879,855 0.69


Integrated Telecommunication ServicesVerizon Communications 1,587,300 55,126,929 3.20SBC Communications 2,210,200 52,912,188 3.07Sprint-FON Group 1,368,800 34,370,568 2.00Amdocs 18,800 501,584 0.03

Total for Integrated Telecommunication Services 8.30

Diversified BanksBank of America 1,210,500 56,784,555 3.30Wells Fargo & Co 726,100 44,974,634 2.61Wachovia 216,071 11,000,175 0.64


Paper ProductsInternational Paper 1,795,056 55,736,489 3.23Georgia-Pacific 1,331,180 42,970,490 2.50

Total for Paper Products 5.73

Thrifts & Mortgage FinanceFreddie Mac 1,172,200 76,427,440 4.43Fannie Mae 156,600 9,212,778 0.54

Total for Thrifts & Mortgage Finance 4.97

Movies & EntertainmentWalt Disney 1,323,100 33,646,433 1.96Time Warner 1,295,400 21,736,812 1.26Viacom non-vtg ‘B’ 543,800 17,755,070 1.03

Total for Movies & Entertainment 4.25

Broadcasting & Cable TVClear Channel Communications 1,224,300 37,892,085 2.20Liberty Media ‘A’ 2,676,400 27,192,224 1.58


Packaged Foods & MeatsUnilever ‘NY’ 555,700 36,037,145 2.09Kraft Foods ‘A’ 736,300 23,348,073 1.36


Property & Casualty InsuranceChubb 408,400 34,995,796 2.03St. Paul Travelers Companies 251,518 10,028,023 0.58AMBAC Financial Group 119,000 8,408,540 0.49


I

A

B

1

0

-1

-2

(0.53)% (0.97)% (1.42)% (0.81)%

I A B





IX

AX

1

0

-1

-2

0.79% 0.73% (0.81)%

IX AX





INVESTMENT AIMS

To provide reasonable long-term capitalgrowth, measured in US Dollars. Investmentswill be sought in equity securities that theCompany believes to be undervalued relativeto the stock market in general at the time ofpurchase.



value% of net

assets

952347-1-007 x-cat 8/22/05 17:51 Page 44




Investment Holding

Investment Holding

Other Diversified Financial ServicesCitigroup 1,095,000 51,224,100 2.98


Diversified ChemicalsDu Pont (E.I.) de Nemours 756,600 33,767,058 1.96Dow Chemical 356,800 16,127,360 0.94

Total for Diversified Chemicals 2.90

Oil & Gas Equipment & ServicesHalliburton 799,300 38,310,449 2.22Schlumberger 57,500 4,411,975 0.26

Total for Oil & Gas Equipment & Services 2.48

Life & Health InsuranceTorchmark 338,700 17,795,298 1.03Genworth Financial ‘A’ 363,500 10,959,525 0.64MetLife 185,700 8,440,065 0.49Aflac 103,200 4,481,976 0.26


Multi-Utilities & Unregulated PowerConstellation Energy Group 286,000 16,439,280 0.95Dominion Resources 192,000 14,179,200 0.82Public Service Enterprise Group 183,500 10,942,105 0.64

Total for Multi-Utilities & Unregulated Power 2.41

Integrated Oil & GasExxon Mobil 249,700 14,592,468 0.86ConocoPhillips 164,800 9,520,496 0.55Petroleo Brasileiro ADR Pfd 128,200 5,920,276 0.34Occidental Petroleum 64,780 5,031,463 0.29Petroleo Brasileiro ADR 24,400 1,279,536 0.07

Total for Integrated Oil & Gas 2.11

Electric UtilitiesFirstEnergy 425,000 20,684,750 1.20American Electric Power 419,800 15,373,076 0.89




AluminumAlcoa 1,238,700 32,577,810 1.89

Total for Aluminum 1.89

Data Processing & Outsourced ServicesAffiliated Computer Services ‘A’ 272,800 13,855,512 0.81Sungard Data Systems 290,900 10,225,135 0.59First Data 212,100 8,494,605 0.49


Household ProductsKimberly-Clark 512,300 32,474,697 1.89


Hypermarkets & Super CentersWal-Mart Stores 610,600 29,638,524 1.72

Total for Hypermarkets & Super Centers 1.72

Regional BanksPNC Financial Services Group 447,300 24,525,459 1.42Suntrust Banks 14,100 1,031,838 0.06

Total for Regional Banks 1.48

Soft DrinksCoca-Cola 554,800 23,689,960 1.38


Investment Banking & BrokerageMerrill Lynch & Co 224,700 12,506,802 0.73Lehman Brothers Holdings 105,100 10,419,614 0.61


Computer HardwareHewlett-Packard 715,000 17,210,050 1.00International Business Machines 73,100 5,462,032 0.32


Health Care DistributorsAmerisourceBergen 286,800 19,674,480 1.14

Total for Health Care Distributors 1.14

Department StoresFederated Department Stores 122,600 9,093,242 0.53May Department Stores 206,000 8,328,580 0.48

Total for Department Stores 1.01

Multi-line InsuranceAmerican International Group 154,000 9,005,920 0.53Hartford Financial Services Group 52,800 4,012,272 0.23Assurant 106,500 3,795,660 0.22


Asset Management & Custody BanksBank of New York 522,800 15,328,496 0.89

Total for Asset Management & Custody Banks 0.89

Diversified Capital MarketsJ.P. Morgan Chase & Co 352,400 12,672,304 0.74

Total for Diversified Capital Markets 0.74

Apparel Accessories & Luxury GoodsJones Apparel Group 403,700 12,635,810 0.73

Total for Apparel Accessories & Luxury Goods 0.73

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 45




Investment Holding

Investment Holding

Specialty ChemicalsRohm & Haas 265,000 12,269,500 0.71


Leisure ProductsMattel 651,400 11,822,910 0.69

Total for Leisure Products 0.69

Communications EquipmentCisco Systems 309,900 5,999,664 0.35Ericsson (LM) ADR ‘B’ 72,900 2,365,605 0.14Nokia ADR 94,800 1,610,652 0.09


Photographic ProductsEastman Kodak 331,200 8,929,152 0.52

Total for Photographic Products 0.52

Oil & Gas DrillingGlobalSantaFe 210,300 8,538,180 0.50

Total for Oil & Gas Drilling 0.50

Computer & Electronics RetailBest Buy Co 106,800 7,385,220 0.43

Total for Computer & Electronics Retail 0.43

Systems SoftwareMicrosoft 235,600 5,911,204 0.34

Total for Systems Software 0.34

AirlinesSouthwest Airlines 386,700 5,398,332 0.31

Total for Airlines 0.31

ReinsuranceBerkshire Hathaway ‘B’ 1,860 5,152,200 0.30


Computer Storage & PeripheralsLexmark International 77,700 5,110,329 0.30


Electronic Manufacturing ServicesFlextronics International 209,600 2,747,856 0.16Jabil Circuit 16,800 522,480 0.03

Total for Electronic Manufacturing Services 0.19

Consumer FinanceCapital One Financial 21,800 1,610,801 0.09


SemiconductorsIntel 22,700 595,875 0.03


Semiconductor EquipmentNovellus Systems 11,100 275,613 0.02

Total for Semiconductor Equipment 0.02


Total NAV 1,721,713,610 100.00

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 46


World Equity Fund

United States of AmericaCitigroup 50,547 2,364,589 2.81General Electric 62,316 2,181,060 2.60Bank of America 34,942 1,639,129 1.94Tyco International 53,778 1,576,233 1.87Target 28,601 1,570,195 1.86Chevron 26,899 1,526,787 1.81Genentech 18,574 1,503,008 1.78Aetna 16,988 1,423,934 1.69Microsoft 52,759 1,323,723 1.57Marvell Technology Group 32,100 1,233,603 1.46American Electric Power 31,891 1,167,848 1.38Schering-Plough 59,037 1,158,306 1.37Altria Group 16,932 1,102,273 1.31News ‘A’ 66,968 1,092,248 1.29International Game Technology 38,020 1,083,570 1.28Merrill Lynch & Co 19,018 1,058,542 1.25Lowe’s Cos 18,088 1,046,029 1.24Intel 39,733 1,042,991 1.24Freddie Mac 15,942 1,039,418 1.23Pfizer 34,824 969,500 1.15Dell 24,242 959,498 1.14Qualcomm 28,518 956,494 1.13Eli Lilly & Co 16,259 915,382 1.09Allstate 15,047 905,679 1.07U.S. Bancorp 30,050 882,569 1.05Avon Products 22,824 869,138 1.03Gtech Holdings 29,970 867,632 1.03Johnson & Johnson 13,153 864,152 1.02Alcoa 31,166 819,666 0.97Amgen 13,178 804,649 0.95General Mills 16,975 801,390 0.95State Street 15,053 738,952 0.88Petsmart 23,310 707,692 0.84Cisco Systems 34,890 675,470 0.80Outback Steakhouse 14,964 673,829 0.80Charles Schwab 58,728 668,912 0.79Georgia-Pacific 20,668 667,163 0.79Marathon Oil 12,100 646,866 0.77Las Vegas Sands 17,138 626,565 0.74BJ Services 11,549 610,249 0.72Corning 34,576 582,260 0.69Xerox 40,272 571,057 0.68Capital One Financial 7,153 528,535 0.63Symantec 24,234 522,727 0.62Franklin Resources 6,686 516,226 0.61Marsh & McLennan Companies 16,861 466,038 0.55Sprint-FON Group 18,405 462,150 0.55Huntington Bancshares 18,702 458,760 0.54Apple Computer 11,700 425,529 0.50Coinstar 18,774 418,285 0.50American International Group 7,045 411,992 0.49GlobalSantaFe 10,092 409,735 0.49Mercury Interactive 8,621 331,564 0.39Verizon Communications 5,952 206,713 0.25


United KingdomGlaxoSmithKline 97,808 2,403,369 2.86Vodafone Group 454,079 1,125,958 1.33Royal Bank of Scotland Group 36,546 1,108,432 1.31Carnival 17,349 982,369 1.16Cadbury Schweppes 89,345 850,122 1.01Morrison WM Supermarkets 92,532 305,376 0.36HSBC Holdings 16,357 261,694 0.31


(2.76)% (2.92)% (3.43)% (0.70)%0.0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5I A B

I

A

B






INVESTMENT AIMS

To seek long-term capital appreciation,measured in US Dollars, through investmentprimarily in equity securities of medium tolarge sized companies listed on the world’sstock exchanges.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 47

World Equity Fund



Investment Holding

Investment Holding

JapanToyota Motor 29,500 1,057,997 1.26Sumitomo Chemical 180,000 829,306 0.98Takeda Pharmaceutical 16,200 804,914 0.95Shin-Etsu Chemical 20,300 772,058 0.92Sumitomo Trust & Banking 114,000 695,153 0.82Tokyo Electric Power 28,100 671,435 0.80Canon 9,500 501,197 0.59Joyo Bank 69,000 337,847 0.40JSR 15,700 331,885 0.39


FranceTotal 6,563 1,538,633 1.83France Telecom 44,962 1,319,647 1.56Schneider Electric 12,763 963,031 1.14BNP Paribas 12,734 868,749 1.03


NetherlandsRoyal Dutch Petroleum 24,860 1,613,615 1.91TNT 36,353 921,933 1.09Royal KPN 104,619 873,890 1.04Royal Numico 20,287 805,235 0.95Wolters Kluwer ‘CVA’ 12,216 232,206 0.28


SwitzerlandNovartis Regd 28,271 1,343,201 1.59UBS Regd 16,302 1,273,762 1.51


SwedenSandvik 30,293 1,127,430 1.33ForeningsSparbanken 33,980 747,491 0.89


GermanyAllianz Regd 9,168 1,059,536 1.25Bayerische Motoren Werke 15,554 704,925 0.84


SpainBanco Bilbao Vizcaya Argentaria 52,027 805,833 0.96Altadis 14,599 610,261 0.72


ItalyENI 30,816 785,226 0.93UniCredito Italiano 119,212 629,731 0.75


Hong KongSun Hung Kai Properties 90,000 888,643 1.05


South KoreaSK Telecom ADR 41,575 846,051 1.00


BermudaACE 14,873 670,921 0.80


FinlandNokia 34,870 588,008 0.70


ChinaNetease.com ADR 8,000 459,120 0.55



Total NAV 84,355,815 100.00

Marketvalue

% of netassets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:51 Page 48


Emerging Markets Debt Fund

MexicoUnited Mexican States nts 8.375% /2011 8,450,000 9,827,350 4.26United Mexican States nts 8.125% /2019 5,359,000 6,556,737 2.84Pemex Project Funding Master Trust co gtd Ser144* priv plmt 9.5% /2027 4,000,000 5,200,000 2.25Pemex Project Funding Master Trust unsecur co gtd 9.125% /2010 3,720,000 4,372,860 1.90United Mexican States 11.5% /2026 2,216,000 3,544,492 1.54United Mexican States SerMTN 8.3% /2031 2,710,000 3,346,850 1.45United Mexican States SerXW 10.375% /2009 2,620,000 3,128,280 1.36Pemex Project Funding Master Trust co gtd SerRegS 4.71% /2010 (1) 2,750,000 2,843,632 1.22Pemex Project Funding Master Trust co gtd SerREg* 9.5% /2027 1,690,000 2,203,419 0.96Pemex Project Funding Master Trust co gtd Ser144A priv plmt 8.625% /2023 1,500,000 1,815,000 0.79Satelites Mexicanos sr nts SerB defaulted 10.125% 01/11/2004 3,175,000 1,698,625 0.74Pemex Project Funding Master Trust co gtd ser RegS 9.5% /2027 860,000 1,121,266 0.49Pemex Project Funding Master Trust unsecur co gtd 9.125% /2010 250,000 293,875 0.13United Mexican States restructured SerD 0% /2006 (1) 3,000,000 74,250 0.03United Mexican States restructured SerC 0% 30/06/2005 3,000,000 23,250 0.01


Russian FederationRussian Federation unsecur unsubord SerRegS 12.75% /2028 7,590,000 13,680,975 5.94Russian Federation unsecur unsubord SerRegS 11% /2018 5,311,000 7,913,390 3.43Russian Federation unsubord SerRegS step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 4,764,846 5,309,468 2.30Aries Vermoegensverwaltungs SerRegS SerC 9.6% /2014 3,750,000 4,865,625 2.11Gaz Capital for Gazprom unsecur nts SerRegS 8.625% /2034 3,440,000 4,305,848 1.87Russian Federation unsubord SerRegS 8.25% /2010 2,990,000 3,275,844 1.42Russian Federation unsubord Ser144A priv plmt step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 10,000 11,143 0.00


BrazilRepublic of Brazil Brady C Ser20YR 8% /2014 10,021,879 10,234,594 4.44Republic of Brazil 8.875% /2019 8,330,000 8,783,985 3.81Republic of Brazil unsubord 14.5% /2009 6,370,000 8,303,295 3.60Republic of Brazil govt gtd Brady Disc SerZL Ser30YR FRB 4.25% /2024 (1) 4,000,000 3,780,000 1.64Republic of Brazil 10.5% /2014 2,920,000 3,460,200 1.50Republic of Brazil unsecur unsubord SerB 8.875% /2024 1,165,000 1,205,775 0.52Republic of Brazil Brady collaterized Ser30YR 6% /2024 (1) 1,240,000 1,193,500 0.52Republic of Brazil unsecur unsubord 11% /2040 710,000 850,403 0.37



I

A

B

5.70% 5.40% 4.91% 5.11%6

5

4

3

2

1

0I A B




JPM Emerging Markets Bond Index Global (expressedin US dollars)


INVESTMENT AIMS

To seek to maximise total return, measured inUS Dollars, through investment in the debtsecurities of government and government-related issuers located in emerging countries.


InvestmentMarket

value

Nominal inUS dollars

unless specified% of net

assets

952347-1-007 x-cat 8/22/05 17:51 Page 49




Investment

Investment

PhilippinesRepublic of Philippines 8.875% /2015 10,770,000 11,295,038 4.90Republic of Philippines sr nts 9.5% /2030 4,520,000 4,658,312 2.02Republic of Philippines global 10.625% /2025 1,720,000 1,943,600 0.84

Total for Philippines 7.76

TurkeyRepublic of Turkey nts 11% /2013 3,260,000 4,127,975 1.80Republic of Turkey nts 11.5% /2012 2,960,000 3,785,100 1.64Citigroup nts RegS 0% /2006 1,800,000 2,591,280 1.12Citigroup nts 0% /2006 1,808,000 2,513,662 1.09Citigroup Global Markets 0% /2006 2,300,000 2,301,174 1.00Citibank Global Markets (Morgan) 0% /2006 1,240,000 1,685,283 0.73Republic of Turkey unsecur sr unsubord 11.875% /2030 500,000 717,601 0.31


MalaysiaGovernment of Malaysia nts 8.75% /2009 6,280,000 7,274,978 3.16Government of Malaysia 7.5% /2011 1,210,000 1,408,223 0.61


VenezuelaRepublic of Venezuela nts 10.75% /2013 4,070,000 4,765,970 2.07Republic of Venezuela 9.375% /2034 2,150,000 2,258,575 0.98Republic of Venezuela nts 8.5% /2014 1,380,000 1,435,890 0.62

Total for Venezuela 3.67

PanamaRepublic of Panama 8.875% /2027 2,410,000 2,879,950 1.25Republic of Panama global 9.375% /2029 1,840,000 2,272,400 0.99Republic of Panama global 9.625% /2011 1,265,000 1,508,513 0.65Republic of Panama 10.75% /2020 380,000 516,800 0.22

Total for Panama 3.11

ArgentinaRepublic of Argentina nts Ser$DIS 8.28% /2033 3,526,673 3,219,852 1.39Republic of Argentina sr nts /2049 3,670,000 1,082,650 0.47Republic of Argentina nts Ser$PAR step cpn 1.33% to 31/03/2009 / 5.25% to 31/12/2038 2,794,698 1,000,502 0.43Republic of Argentina nts Ser DIS$ 8.28% /2033 316,972 290,641 0.13Republic of Argentina nts SerPAR$ step cpn 1.33% to 31/03/2009 / 5.25% to 31/12/2038 356,672 127,266 0.06


PeruRepublic of Peru nts 9.875% /2015 2,625,000 3,241,875 1.41Republic of Peru 8.375% /2016 1,720,000 1,935,000 0.84

Total for Peru 2.25

ChileEmpresa Nacional de Petroleo nts SerRegS 6.75% /2012 3,260,000 3,636,286 1.58Empresa Nacional de Petroleo nts Ser144A priv plmt 6.75% /2012 90,000 99,833 0.04


BulgariaRepublic of Bulgaria SerRegS 8.25% /2015 2,539,000 3,199,140 1.39

Total for Bulgaria 1.39

ColombiaRepublic of Colombia bnk gtd 9.75% /2011 1,222,471 1,402,174 0.61Republic of Colombia 11.75% /2020 780,000 1,017,900 0.44Republic of Colombia unsecur 10.375% /2033 490,000 585,550 0.25


NigeriaCentral Bank of Nigeria Brady SerWW step cpn 6.25% to 15/11/2020 2,500,000 2,462,500 1.06Central Bank of Nigeria Wts exp. 15/11/2020 4,000 104,000 0.05

Total for Nigeria 1.11

QatarState of Qatar sr unsecur SerRegS 9.75% /2030 1,100,000 1,713,250 0.74

Total for Qatar 0.74

TunisiaBanque Centrale de Tunisie unsubord 7.375% /2012 780,000 899,924 0.39

Total for Tunisia 0.39

Ivory CoastIvory Coast Ser20YR FLIRB 2% /2018 2,240,000 425,600 0.18

Total for Ivory Coast 0.18

Total transferable securities admitted to official exchangelisting or dealt in on another regulated market 209,608,198 90.90


IndonesiaTjiwi Kimia Finance co gtd Reg144A 4.1% /2018 (1) 2,732,888 1,749,048 0.76Pindo Deli Finance co gtd Reg144A 4.19% /2018 (1) 3,725,131 1,899,816 0.82Pindo Deli Finance co gtd Reg144A 0% /2025 (1) 7,512,234 1,502,447 0.65Pindo Deli Finance co gtd Reg144A 4.19% /2015 (1) 1,432,635 1,146,108 0.50Tjiwi Kimia Finance co gtd Reg144A 4.1% /2015 (1) 1,061,782 891,897 0.39Tjiwi Kimia Finance co gtd Reg144A 0% /2027 (1) 3,375,330 810,079 0.35


Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:51 Page 50



STATEMENT OF INVESTMENTS (continued)Other transferable securities not admitted to official exchange listingor dealt in on another regulated market. As at 30 June 2005,expressed in US dollars.

Investment

Russian FederationRussian FTO A/O Raznoexport defaulted loan 31/01/1993 (2) 1,033,834 1,250,008 0.54


VenezuelaRepublic of Venezuela Wts exp. 15/04/2020 14,345 337,108 0.15

Total for Venezuela 0.15

Total other transferable securities not admitted to official exchange listing or dealt in on another regulated market 9,586,511 4.16


Total NAV 230,592,980 100.00

(1) Variable coupon rates are those quoted as of 30 June 2005.(2) This security is valued at its fair market value. See note 2(a).

Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:51 Page 51


Euro Bond Fund

Government Bonds

NetherlandsGovernment of Netherlands 5% /2011 75,000,000 84,498,750 9.01Government of Netherlands 5% /2012 64,000,000 72,720,000 7.75Government of Netherlands 3.75% /2009 58,000,000 61,033,400 6.51Government of Netherlands 5.75% /2007 32,000,000 33,884,800 3.61Government of Netherlands 2.75% /2009 2,000,000 2,031,406 0.22


FranceGovernment of France OAT 5.5% /2029 55,500,000 71,669,925 7.65French Treasury Note BTAN 3% /2008 42,000,000 42,991,200 4.58Government of France OAT 4% /2009 40,000,000 42,420,000 4.52Government of France OAT 5.5% /2010 36,000,000 40,838,400 4.35


GermanyBundesobligation Ser139 4% /2007 58,000,000 59,835,700 6.38Bundesrepublik Ser97 6.5% /2027 34,800,001 49,917,121 5.32Bundesrepublik Ser03 3.75% /2013 42,000,000 44,379,300 4.73Deutsche Bundesrepublik Ser04 4.25% /2014 34,200,000 37,382,635 3.99


IrelandIrish Government (Treasury) 4.25% /2007 25,000,000 26,217,500 2.80


ItalyRepublic of Italy 6% /2031 11,000,000 14,743,850 1.57


AustriaRepublic of Austria sr unsubord unsecur Ser2 4.65% /2018 8,500,000 9,631,350 1.03


Total for Government Bonds 74.02

Corporate Bonds

United States of AmericaGeneral Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 5,000,000 5,275,375 0.56Freddie Mac unsecur sr nts SerINTL 4.625% /2007 5,000,000 5,200,250 0.55Ford Motor Credit sr nts SerEMTN 5.75% /2009 4,300,000 4,229,910 0.45Procter & Gamble unsecur sr unsubord 5.75% 26/09/2005 4,000,000 4,031,320 0.43General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 4,000,000 3,921,420 0.42Bank of America unsecur sr unsubord 4.25% /2010 3,500,000 3,747,765 0.40New York Life Funding secur sr nts SerEMTN 5.125% /2006 3,425,000 3,501,720 0.37Zurich Finance USA unsecur co gtd SerEMTN 5.75% /2023 (1) 3,000,000 3,345,155 0.36

INVESTMENT AIMS

To provide an attractive rate of return,measured in Euro, through investment in Eurodenominated fixed income securities of highquality issued by governments, agencies andcorporations.


Investment


I

A

B

5

4

3

2

1

0

4.24% 4.09% 3.55% 4.97%

I A B




MSCI Euro Debt Index (expressed in Euro)

S

5

4

3

2

1

0

4.19% 4.97%

S

Fund (net of expenses) Class S shares



Marketvalue

% of netassets

Nominal inEuro unless

specified

952347-1-007 x-cat 8/22/05 17:51 Page 52


Euro Bond Fund


Investment

Investment

Corporate Bonds (continued)

United States of America (continued)Citigroup sr nts 5% /2019 2,800,000 3,188,780 0.34Household Finance unsecur sr unsubord 5.125% /2009 2,600,000 2,836,553 0.30Merrill Lynch & Co unsecur unsubord SerEMTN 5.375% /2009 (DEM) 3,700,000 2,038,715 0.22Countrywide Home Loans co gtd SerEMTN 2.75% /2006 2,000,000 2,008,510 0.21CIT Group sr nts SerGMTN 4.25% /2011 1,400,000 1,476,230 0.16Citicorp subord SerEMTN 5.5% /2010 (DEM) 2,000,000 1,137,982 0.12Hutchison Whampoa Finance co gtd 5.875% 2013 800,000 909,209 0.10


United KingdomJohn Hancock Global Fund secur SerEMTN 3.875% /2006 5,500,000 5,552,250 0.59BAT International Finance unsecur sr unsubord co gtd SerEMTN 5.125% /2013 3,500,000 3,808,385 0.41ASIF III Jersey sr unsubord SerEMTN 4.75% /2013 3,000,000 3,306,522 0.35Royal Bank of Scotland unsecur sr subord SerEMTN 4.5% /2016 (1) 2,900,000 3,123,721 0.33WPP Group unsecur unsubord 6% /2008 2,850,000 3,118,755 0.33Barclays Bank subord nts SerEMTN 5.75% /2011 2,625,000 3,006,934 0.32Lloyds TSB Bank subord 5.625% /2049 (1) 2,711,000 2,997,282 0.32GlaxoSmithKline Capital co gtd SerEMTN 4% /2025 2,700,000 2,693,929 0.29HBOS subord nts SerEMTN 4.5% /2030 (1) 2,500,000 2,582,000 0.28Nationwide Building Society nts SerEMTN 3.125% /2010 2,500,000 2,542,936 0.27OTE co gtd SerEMTN 5% /2013 2,000,000 2,179,300 0.23Aviva subord 5.25% /2023 (1) 1,900,000 2,117,693 0.23HSBC Holdings subord 3.625% /2020 1,880,000 1,877,634 0.20Prudential subord SerEMTN 5.75% /2021 (1) 1,500,000 1,716,585 0.18Legal & General Group subord nts SerEMTN 4% /2025 (1) 1,150,000 1,169,223 0.12Credit Suisse unsecur subord 5.75% /2010 (DEM) 950,000 545,860 0.06John Hancock Global Fund secur SerEMTN 5.375% /2008 (DEM) 400,000 222,461 0.02


NetherlandsDeutsche Telekom International Finance unsecur unsubord co gtd 6.625% /2011 3,050,000 3,628,738 0.39Allianz Finance II unsecur subord co gtd 6.125% /2022 (1) 2,905,000 3,391,655 0.36Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 2,800,000 2,912,420 0.31Munich Re Finance unsecur subord co gtd 6.75% /2023 (1) 2,000,000 2,384,560 0.25Aegon unsecur sr unsubord SerEMTN 4.625% /2008 2,100,000 2,222,162 0.24DaimlerChrysler International Finance sr unsecur unsubord co gtd SerEMTN 6.125% /2006 1,980,000 2,032,213 0.22Koninklijke Philips Electronics unsecur sr unsubord 5.75% /2008 1,850,000 2,012,523 0.21SNS Bank Nederland unsecur unsubord SerEMTN 6.125% /2010 1,700,000 1,958,366 0.21EADS Finance co gtd 5.5% /2018 1,500,000 1,753,516 0.19Cooper Industries Finance unsecur sr unsubord co gtd 6.25% 25/10/2005 1,300,000 1,315,219 0.14


Netherlands (continued)Rodamco Europe Finance co gtd 3.75% /2010 1,000,000 1,034,219 0.11DSL Finance unsecur unsubord bnk gtd 5.75% /2009 (DEM) 1,650,000 938,920 0.10RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 338,000 361,947 0.04


GermanyRheinboden Hypoteken Bank Ser94 jumbo pfandbriefe 5.25% /2008 10,000,000 10,742,725 1.14Eurohypo secur jumbo pfandbriefe Ser748 4% /2007 10,000,000 10,298,500 1.10


FranceFrance Telecom unsecur sr unsubord SerEMTN 8.125% /2033 1,850,000 2,848,260 0.31Vivendi Environnement sr nts SerEMTN 5.875% /2008 2,590,000 2,837,993 0.31France Telecom unsecur sr unsubord SerEMTN 7% /2009 2,400,000 2,816,400 0.31BNP Paribas subord SerEMTN 3.125% /2015 (1) 2,730,000 2,753,281 0.29Elf Aquitaine unsecur sr unsubord 4.5% /2009 1,600,000 1,715,904 0.18France Telecom unsecur sr unsubord SerEMTN 7.25% /2013 1,160,000 1,453,615 0.15SFR 3.375% /2012 1,350,000 1,346,992 0.14Thales sr nts SerEMTN 4.375% /2011 1,040,000 1,106,716 0.12Veolia Environnement sr nts SerEMTN 5.875% /2012 500,000 579,550 0.06Aventis unsecur sr unsubord SerEMTN 5% /2006 500,000 510,855 0.05


SpainSantander International Debt bnk gtd SerEMTN 2.166% /2008 (1) 4,200,000 4,195,729 0.45


AustraliaAustralia & New Zealand Banking Group sr nts SerEMTN 3.125% /2010 2,300,000 2,346,568 0.25


ItalyOlivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 3,450,000 4,201,583 0.44Sanpaolo IMI subord SerEMTN 3.75% /2015 (1) 2,135,000 2,214,102 0.24Olivetti Finance co gtd SerEMTN 7.75% /2033 1,350,000 1,871,735 0.20


SwedenSkandinaviska Enskilda Banken subord nts SerEMTN 4.125% /2015 (1) 1,200,000 1,267,380 0.14SCA Finans unsecur unsubord co gtd SerEMTN 5.375% /2007 850,000 898,697 0.10Assa Abloy nts SerEMTN 5.125% /2006 564,000 584,895 0.06


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:51 Page 53

Euro Bond Fund



Investment


SingaporeSingapore Telecommunications Ser144A priv plmt 6% /2011 700,000 795,932 0.08


Total for Corporate Bonds 18.41

Mortgage and Asset Backed Securities

United States of AmericaMBNA American Euro Structure 5.125% /2008 (DEM) 15,350,000 8,340,420 0.89


Total for Mortgage and Asset Backed Securities 0.89


Total NAV 937,962,214 100.00

(1) Variable coupon rates are those quoted as of 30 June 2005.

Marketvalue

% of netassets


specified

952347-1-007 x-cat 8/22/05 17:51 Page 54


Euro Corporate Bond Fund

Euro Medium Term NotesOlivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 7,000,000 8,524,950 2.17Ford Motor Credit sr nts SerEMTN 5.75% /2009 7,050,000 6,935,085 1.76France Telecom unsecur sr unsubord SerEMTN 8.125% /2033 4,165,000 6,412,434 1.63Bank Nederlandse Gemeenten sr unsubord SerEMTN 3% /2010 6,100,000 6,219,365 1.58GE Capital European Funding co gtd SerEMTN 3.25% /2010 5,800,000 5,934,824 1.51Cadbury Schweppes Investments co gtd SerEMTN 4.25% /2009 4,470,000 4,689,656 1.19National Grid Transco sr nts SerEMTN 5% /2018 4,000,000 4,406,000 1.12Stora Enso nts SerEMTN 3.25% /2010 4,180,000 4,191,389 1.06Lafarge nts SerEMTN 5% /2014 3,731,000 4,058,939 1.03Generali Finance co gtd SerEMTN 3.875% /2015 3,900,000 4,047,839 1.03Lehman Brothers Holdings nts SerEMTN 6.375% /2011 3,350,000 3,935,031 1.00Nationwide Building Society nts SerEMTN 3.125% /2010 3,850,000 3,916,122 0.99France Telecom unsecur sr unsubord SerEMTN 7.25% /2013 3,100,000 3,884,660 0.99Bertelsmann US Finance unsecur sr unsubord co gtd SerEMTN 4.625% /2010 3,600,000 3,845,677 0.98New York Life Funding secur sr nts SerEMTN 5.125% /2006 3,750,000 3,834,000 0.97SLM unsubord SerEMTN 4.75% /2014 3,500,000 3,815,438 0.97Vodafone Group unsecur sr unsubord SerEMTN 4.25% /2009 3,600,000 3,814,020 0.97BAT International Finance unsecur sr unsubord co gtd SerEMTN 5.125% /2013 3,500,000 3,808,385 0.97GlaxoSmithKline Capital co gtd SerEMTN 4% /2025 3,800,000 3,791,455 0.96Aegon unsecur sr unsubord SerEMTN 4.625% /2008 3,250,000 3,439,060 0.87JPMorgan Chase & Co nts SerEMTN 4.25% /2011 3,200,000 3,417,555 0.87Olivetti Finance co gtd SerEMTN 7.75% /2033 2,440,000 3,382,987 0.86ASIF III Jersey sr unsubord SerEMTN 4.75% /2013 3,000,000 3,306,522 0.84Vivendi Environnement sr nts SerEMTN 5.875% /2008 3,000,000 3,287,250 0.83France Telecom unsecur sr unsubord SerEMTN 7% /2009 2,750,000 3,227,125 0.82Imperial Tobacco Finance co gtd SerEMTN 6.25% /2007 3,000,000 3,218,580 0.82MBNA Europe Funding gtd SerEMTN 4.5% /2009 3,030,000 3,208,922 0.82Royal KPN unsecur sr nts SerEMTN 4.5% /2011 2,932,000 3,114,291 0.79Allied Domecq Financial Services co gtd SerEMTN 5.875% /2009 2,650,000 2,898,027 0.74GUS unsecur sr nts SerEMTN 4.125% /2007 2,800,000 2,888,578 0.73EADS Finance co gtd 5.5% /2018 2,300,000 2,688,725 0.68BAT International Finance unsecur co gtd SerEMTN 4.875% /2009 2,500,000 2,670,024 0.68Compass Group unsecur unsubord SerEMTN 6% /2009 2,350,000 2,598,110 0.66Australia & New Zealand Banking Group sr nts SerEMTN 3.125% /2010 2,500,000 2,550,618 0.65WPP Group unsecur unsubord 6% /2008 2,320,000 2,538,776 0.64Countrywide Home Loans co gtd SerEMTN 2.75% /2006 2,500,000 2,510,638 0.64

I

A

B

3.20% 2.99% 2.48% 4.26%5

4

3

2

1

0I A B




MSCI ECCI Index (expressed in Euro)


INVESTMENT AIMS

To provide an attractive rate of return,measured in Euro, primarily throughinvestment in Euro denominated fixed incomesecurities of high quality issued bycorporations and non government relatedissuers.


Investment


Marketvalue

% of netassets


specified

952347-1-007 x-cat 8/22/05 17:51 Page 55




Investment

Investment

Euro Medium Term Notes (continued)UPM-Kymmene unsecur sr nts SerEMTN 6.125% /2012 2,100,000 2,418,591 0.61OTE co gtd SerEMTN 5% /2013 2,000,000 2,179,300 0.55Sanpaolo IMI subord SerEMTN 3.75% /2015 (1) 2,100,000 2,177,805 0.55Merrill Lynch & Co unsecur sr unsubord SerEMTN 4.625% /2013 2,000,000 2,176,150 0.55SNS Bank Nederland sr unsecur unsubord SerEMTN 6% /2007 2,000,000 2,164,750 0.55Schneider Electric unsecur sr unsubord SerEMTN 6.125% /2007 2,000,000 2,162,280 0.55ABN Amro Bank subord SerEMTN 4.625% /2009 2,000,000 2,143,250 0.54Rolls-Royce Group unsecur unsubord SerEMTN 4.5% /2011 2,000,000 2,133,213 0.54General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 2,010,000 1,970,514 0.50Veolia Environnement unsecur sr unsubord SerEMTN 4.875% /2013 1,700,000 1,874,039 0.48Enel nts SerEMTN 4.125% 20/05/2011 1,750,000 1,864,402 0.47E.On International Finance co gtd SerEMTN 5.75% /2009 1,650,000 1,843,572 0.47General Motors Acceptance unsecur sr unsubord SerEMTN 5.375% /2011 2,000,000 1,795,250 0.46ISS Global unsecur unsubord SerEMTN 4.75% /2010 2,000,000 1,780,000 0.45Tyco International Group unsecur sr unsubord co gtd SerEMTN 5.5% /2008 1,500,000 1,629,930 0.41Fortis Finance co gtd SerEMTN 4.625% /2009 1,500,000 1,614,563 0.41Rolls-Royce unsecur sr unsubord SerEMTN 6.375% /2007 1,500,000 1,614,300 0.41Thales sr nts SerEMTN 4.375% /2011 1,360,000 1,447,244 0.37International Endesa sr unsecur unsubord co gtd SerEMTN 5.375% /2013 1,250,000 1,418,115 0.36Rentokil Initial unsecur sr unsubord SerEMTN 5.75% /2007 1,250,000 1,322,400 0.34Telefonica Europe co gtd SerEMTN 5.875% /2033 1,000,000 1,227,756 0.31Securitas unsecur sr unsubord SerEMTN 6.125% /2006 915,000 933,346 0.24Citicorp subord SerEMTN 5.5% /2010 (DEM) 1,500,000 853,487 0.22Allied Domecq Financial Services co gtd SerEMTN 6.625% /2014 (GBP) 500,000 775,615 0.20RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 614,000 657,502 0.17SCA Finans unsecur unsubord co gtd SerEMTN 5.375% /2007 600,000 634,375 0.16Allied Domecq Financial Services co gtd SerEMTN 5.5% /2006 500,000 511,833 0.13Assa Abloy nts SerEMTN 5.125% /2006 461,000 478,080 0.12Securitas unsecur sr unsubord SerEMTN 6.125% /2008 400,000 434,509 0.11Koninklikje Ahold unsecur sr unsubord SerEMTN 5.875% /2008 400,000 427,040 0.11Safeway unsecur unsubord SerEMTN 6.5% /2010 250,000 282,643 0.07

Total for Euro Medium Term Notes 47.23

Eurobond Fixed RatePemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 5,150,000 5,837,525 1.49Depfa Pfandbriefbank secur SerG6 5.5% /2010 4,550,000 5,130,912 1.30Vivendi Universal sr nts 3.625% /2010 4,600,000 4,675,281 1.19

Eurobond Fixed Rate (continued)General Motors unsecur 7.25% /2013 4,500,000 3,898,760 0.99Hutchison Whampoa Finance co gtd 5.875% 2013 3,000,000 3,409,535 0.87Philip Morris Finance sr unsecur unsubord co gtd 5.625% /2008 3,140,000 3,372,368 0.86Deutsche Bank unsecur sr unsubord 5.5% /2011 2,900,000 3,304,565 0.84Banca Intesa unsecur sr unsubord 6.25% /2010 2,850,000 3,287,140 0.83VNU unsecur sr unsubord 6.625% /2007 3,000,000 3,230,550 0.82Adecco Financial Service co gtd 6% /2006 3,150,000 3,229,534 0.82International Paper nts 5.375% /2006 3,000,000 3,094,230 0.79Bundesrepublik Ser03 3.75% /2013 2,700,000 2,852,955 0.72Koninklijke Philips Electronics unsecur sr unsubord 5.75% /2008 2,500,000 2,719,625 0.69Pearson 6.125% /2007 2,500,000 2,640,250 0.67Citigroup sr nts 5% /2019 2,310,000 2,630,743 0.67TPSA Eurofinance France co gtd 4.625% /2011 2,350,000 2,542,348 0.65PLD International Finance co gtd 4.375% /2011 2,400,000 2,521,005 0.64Saint-Gobain Nederland co gtd 5% /2010 2,100,000 2,296,555 0.58Government of Netherlands 5% /2012 2,000,000 2,272,500 0.58Tyco International Group unsecur unsubord co gtd 6.125% /2007 2,000,000 2,116,321 0.54Altadis Finance co gtd 4.25% /2008 2,000,000 2,103,383 0.53HSBC Holdings subord 3.625% /2020 2,100,000 2,097,357 0.53Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 1,825,000 1,898,274 0.48SFR 3.375% /2012 1,850,000 1,845,878 0.47Hammerson unsecur sr unsubord 6.25% /2008 1,600,000 1,764,712 0.45Wolters Kluwer unsecur sr unsubord 5.125% /2014 1,500,000 1,640,850 0.42Government of France OAT 5.5% /2029 1,200,000 1,549,620 0.39Sealed Air Finance II sr unsecur co gtd 5.625% /2006 1,115,000 1,150,242 0.29Rodamco Europe Finance co gtd 3.75% /2010 1,000,000 1,034,219 0.26Cooper Industries Finance unsecur sr unsubord co gtd 6.25% 25/10/2005 1,000,000 1,011,707 0.26SES Global unsecur sr unsubord co gtd 4.5% /2008 670,000 707,071 0.18Corning nts Ser144A priv plmt 6.25% /2010 505,000 563,075 0.14

Total for Eurobond Fixed Rate 20.94

Euromarket Step UpAllianz Finance II unsecur subord co gtd 6.125% /2022 (1) 4,300,000 5,020,348 1.27Zurich Finance USA unsecur co gtd SerEMTN 5.75% /2023 (1) 4,500,000 5,017,731 1.27Munich Re Finance unsecur subord co gtd 6.75% /2023 (1) 4,150,000 4,947,962 1.26Royal Bank of Scotland unsecur sr subord SerEMTN 4.5% /2016 (1) 4,580,000 4,933,324 1.25BNP Paribas subord SerEMTN 3.125% /2015 (1) 3,800,000 3,832,406 0.97HBOS subord nts SerEMTN 4.5% /2030 (1) 3,425,000 3,537,340 0.90Aviva subord 5.25% /2023 (1) 3,130,000 3,488,620 0.89SL Finance co gtd 6.375% /2022 (1) 3,000,000 3,476,832 0.88Michelin (C.G.D.E.) subord SerTSDR 6.375% /2033 (1) 3,050,000 3,468,567 0.88Santander International Debt bnk gtd SerEMTN 2.166% /2008 (1) 3,410,000 3,406,532 0.87UniCredito Italiano nts SerEMTN 2.272% /2011 (1) 3,250,000 3,249,535 0.83UBS Preferred Funding Jersey bnk gtd 4.28% /2049 (1) 2,900,000 3,023,602 0.77Bank of Ireland subord SerEMTN 4.625% /2019 (1) 2,000,000 2,174,960 0.55Danske Bank A/S subord nts unsecur SerEMTN 5.75% /2011 (1) 2,000,000 2,172,079 0.55

Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:51 Page 56




Investment

Investment

Euromarket Step Up (continued)Linde Finance co gtd 6% /2013 (1) 1,865,000 2,025,362 0.51Prudential subord SerEMTN 5.75% /2021 (1) 1,750,000 2,002,683 0.51Russian Federation unsubord SerRegS step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 (USD) 2,025,000 1,870,103 0.47Legal & General Group subord nts SerEMTN 4% /2025 (1) 1,500,000 1,525,073 0.39Nordea Bank subord nts SerEMTN 4% /2016 (1) 700,000 736,771 0.19Australia & New Zealand Banking Group subord nts SerEMTN 4.45% /2015 (1) 650,000 695,918 0.18

Total for Euromarket Step Up 15.39

Fixed Rate GlobalDeutsche Telekom International Finance unsecur co gtd 8.125% /2012 9,100,000 11,789,959 2.98Freddie Mac 3.75% /2009 6,600,000 6,922,327 1.75Bank of America unsecur sr unsubord 4.25% /2010 4,680,000 5,011,297 1.27Household Finance unsecur sr unsubord 5.125% /2009 3,600,000 3,927,534 1.00DaimlerChrysler NA Holding co gtd 7.3% /2012 (USD) 5,400,000 5,002,527 1.27Goldman Sachs Group nts 5.125% /2013 1,650,000 1,840,705 0.47WPP Finance UK co gtd 5.875% /2014 (USD) 2,050,000 1,796,292 0.46CIT Group sr nts SerGMTN 4.25% /2011 1,700,000 1,792,565 0.46Comcast sr unsecur co gtd 6.5% /2015 (USD) 1,750,000 1,612,393 0.41Ford Motor Credit nts 6.5% /2007 (USD) 1,700,000 1,421,060 0.36Health Net unsecur sr nts 9.875% /2011 (USD) 1,400,000 1,384,818 0.35CIT Group unsecur sr unsubord 5% /2014 1,100,000 1,204,488 0.31Residential Capital nts Ser144A priv plmt 6.375% /2010 (USD) 1,300,000 1,084,006 0.28Citigroup unsecur sr nts SerINTL 3.875% /2010 1,000,000 1,054,380 0.27Residential Capital nts Ser144A priv plmt 6.375% /2010 (USD) 885,000 737,958 0.19Mantis Reef nts Ser144A priv plmt 4.692% /2008 (USD) 390,000 324,327 0.08Singapore Telecommunications Ser144A priv plmt 6% /2011 160,000 181,928 0.05SLM nts 4% /2010 (USD) 45,000 36,875 0.01

Total for Fixed Rate Global 11.97

US Corporate BondsWashington Mutual subord nts 8.25% /2010 (USD) 2,280,000 2,179,032 0.55Interpublic Group of Companies nts 6.25% /2014 (USD) 2,625,000 2,044,210 0.52News America debentures 7.125% /2028 (USD) 1,500,000 1,415,703 0.36Altria Group nts 7% /2013 (USD) 855,000 793,137 0.20Interpublic Group of Companies nts 5.4% /2009 (USD) 925,000 735,411 0.19Tenet Healthcare unsecur sr nts 6.875% /2031 (USD) 475,000 331,950 0.08

Total for US Corporate Bonds 1.90

Government BondsRussian Federation unsubord Ser144A priv plmt step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 (USD) 2,200,000 2,033,816 0.52



Total NAV 393,721,043 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:51 Page 57


Euro Strategic Bond Fund

Government Bonds

FranceGovernment of France OAT 5.5% /2029 40,800,000 52,687,080 8.81Government of France OAT 5.5% /2010 40,900,000 46,396,960 7.77French Treasury Note BTAN 3% /2008 28,900,000 29,582,040 4.95Government of France OAT 5.5% /2007 25,900,000 27,881,350 4.67


NetherlandsGovernment of Netherlands 3.75% /2009 49,400,000 51,983,620 8.69Government of Netherlands 5% /2011 44,000,000 49,572,600 8.30Government of Netherlands 5% /2012 39,200,000 44,541,000 7.46Government of Netherlands 2.75% /2009 1,000,000 1,015,703 0.17


GermanyBundesrepublik Ser03 3.75% /2013 36,500,000 38,567,725 6.46Bundesrepublik Ser97 6.5% /2027 22,700,000 32,560,880 5.45Bundesobligation Ser139 4% /2007 27,000,000 27,854,550 4.66Bundesobligation Ser142 3% /2008 16,300,000 16,681,559 2.79Deutsche Bundesrepublik Ser04 4.25% /2014 11,300,000 12,351,572 2.07


AustriaRepublic of Austria sr unsubord unsecur Ser2 4.65% /2018 5,700,000 6,458,670 1.08


IrelandIrish Government (Treasury) 4.25% /2007 6,000,000 6,292,200 1.05


BelgiumKingdom of Belgium Ser31 5.5% /2028 3,000,000 3,844,500 0.64


CanadaGovernment of Canada nts SerEMTN 1.9% /2009 (JPY) 300,000,000 2,396,482 0.40


Russian FederationRussian Federation unsubord SerRegS step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 (USD) 2,080,000 1,920,896 0.32



I

A

B

5

4

3

2

1

0

4.31% 4.14% 3.64% 4.97%

I A B





IX

AX

5

4

3

2

1

0

1.05% 1.02% 4.97%

IX AX





INVESTMENT AIMS

To provide an attractive rate of return,measured in Euro, through market, instrumentand currency selection. The Fund consists offixed income securities of varying maturities,denominated primarily in the Euro and otherEuropean currencies which are probablecandidates for joining the Economic andMonetary Union at a later date.


Investment


Marketvalue

% of netassets


specified

952347-1-007 x-cat 8/22/05 17:52 Page 58




Investment

Investment

Corporate Bonds

United States of AmericaFord Motor Credit sr nts SerEMTN 5.75% /2009 2,300,000 2,262,510 0.37Zurich Finance USA unsecur co gtd SerEMTN 5.75% /2023 (1) 1,600,000 1,784,082 0.30Tyco International Group unsecur unsubord co gtd 6.125% /2007 1,550,000 1,640,149 0.27DaimlerChrysler NA Holding co gtd 7.3% /2012 (USD) 1,750,000 1,621,189 0.27Xerox unsecur sr nts 9.75% /2009 950,000 1,130,405 0.19Bank of America unsecur sr unsubord 4.25% /2010 1,000,000 1,070,790 0.18Interpublic Group of Companies nts 6.25% /2014 (USD) 1,375,000 1,070,777 0.18General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 1,000,000 1,055,075 0.18Georgia-Pacific sr unsecur co gtd 8.875% /2010 (USD) 1,080,000 1,022,978 0.17CIT Group sr nts SerGMTN 4.25% /2011 970,000 1,022,817 0.17Merrill Lynch & Co unsecur unsubord SerEMTN 5.375% /2009 (DEM) 1,810,000 997,317 0.17General Motors Acceptance unsecur sr unsubord SerEMTN 5.375% /2011 1,100,000 987,388 0.17General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 1,000,000 980,355 0.16General Motors unsecur 7.25% /2013 1,100,000 953,030 0.16MGM Mirage sr nts 6.75% /2012 (USD) 1,000,000 855,454 0.14Owens Brockway Glass Container co gtd 6.75% /2014 750,000 776,250 0.13International Paper nts 5.375% /2006 700,000 721,987 0.12Health Net unsecur sr nts 9.875% /2011 (USD) 700,000 692,409 0.12Echostar DBS co gtd 6.625% /2014 (USD) 840,000 691,424 0.12Corning nts Ser144A priv plmt 6.25% /2010 600,000 669,000 0.11Philip Morris Finance sr unsecur unsubord co gtd 5.625% /2008 600,000 644,402 0.11Reliant Energy secur 6.75% /2014 (USD) 650,000 527,392 0.09Household Finance unsecur unsubord 5.25% 23/11/2005 500,000 505,789 0.08Starwood Hotels & Resorts Worldwide sr co gtd 7.875% /2012 (USD) 500,000 469,781 0.08Hutchison Whampoa Finance co gtd 5.875% 2013 400,000 454,605 0.08Kerr-McGee secur 7.875% /2031 (USD) 435,000 406,834 0.07Household Finance unsecur sr unsubord 5.125% /2009 300,000 327,295 0.05Xerox sr nts 6.875% /2011 (USD) 370,000 322,654 0.05Interpublic Group of Companies nts 5.4% /2009 (USD) 350,000 278,263 0.05Bank of America sr unsecur unsubord 3.625% /2008 250,000 258,356 0.04Tenet Healthcare unsecur sr nts 6.875% /2031 (USD) 250,000 174,711 0.03Altria Group nts 7% /2013 (USD) 175,000 162,338 0.03


NetherlandsBank Nederlandse Gemeenten unsecur sr unsubord 0.8% /2008 (JPY) 1,450,000,000 11,103,796 1.85Deutsche Telekom International Finance unsecur co gtd 8.125% /2012 2,800,000 3,627,680 0.61Allianz Finance II unsecur subord co gtd 6.125% /2022 (1) 1,860,000 2,171,593 0.36Munich Re Finance unsecur subord co gtd 6.75% /2023 (1) 1,350,000 1,609,578 0.27


Netherlands (continued)VNU unsecur sr unsubord 6.625% /2007 1,100,000 1,184,535 0.20Koninklikje Ahold unsecur sr unsubord SerEMTN 5.875% /2008 1,030,000 1,099,628 0.18Aegon unsecur sr unsubord SerEMTN 4.625% /2008 1,000,000 1,058,172 0.18Kappa Beheer sr subord co gtd Ser*144 priv plmt 10.625% /2009 750,000 776,250 0.13Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 650,000 676,098 0.11Koninklijke Philips Electronics unsecur sr unsubord 5.75% /2008 600,000 652,710 0.11Altadis Finance co gtd 4.25% /2008 500,000 525,846 0.09Sealed Air Finance II sr unsecur co gtd 5.625% /2006 385,000 397,169 0.07Royal KPN unsecur sr nts SerEMTN 4.5% /2011 350,000 371,760 0.06RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 87,000 93,164 0.02


United KingdomBAT International Finance unsecur sr unsubord co gtd SerEMTN 5.125% /2013 1,800,000 1,958,597 0.33GlaxoSmithKline Capital co gtd SerEMTN 4% /2025 1,650,000 1,646,290 0.28ASIF III Jersey sr unsubord SerEMTN 4.75% /2013 1,350,000 1,487,935 0.25Cadbury Schweppes Investments co gtd SerEMTN 4.25% /2009 1,350,000 1,416,339 0.24Royal Bank of Scotland unsecur sr subord SerEMTN 4.5% /2016 (1) 1,300,000 1,400,289 0.23HBOS subord nts SerEMTN 4.5% /2030 (1) 1,350,000 1,394,280 0.23HSBC Holdings subord 3.625% /2020 1,150,000 1,148,553 0.19Aviva subord 5.25% /2023 (1) 1,000,000 1,114,575 0.19Vodafone Group unsecur nts SerEMTN 5.75% /2006 1,000,000 1,045,650 0.18John Hancock Global Fund secur SerEMTN 3.875% /2006 1,000,000 1,009,500 0.17OTE co gtd SerEMTN 5% /2013 900,000 980,685 0.16MBNA Europe Funding gtd SerEMTN 4.5% /2009 900,000 953,145 0.16Nationwide Building Society nts SerEMTN 3.125% /2010 900,000 915,457 0.15Rolls-Royce Group unsecur unsubord SerEMTN 4.5% /2011 780,000 831,953 0.14WPP Finance UK co gtd 5.875% /2014 (USD) 930,000 814,903 0.14Allied Domecq Financial Services co gtd SerEMTN 6.625% /2014 (GBP) 500,000 775,615 0.13Legal & General Group subord nts SerEMTN 4% /2025 (1) 700,000 711,701 0.12WPP Group unsecur unsubord 6% /2008 650,000 711,295 0.12Compass Group unsecur unsubord SerEMTN 6% /2009 600,000 663,347 0.11Rentokil Initial unsecur sr unsubord SerEMTN 5.75% /2007 600,000 634,752 0.11GUS unsecur sr nts SerEMTN 4.125% /2007 600,000 618,981 0.10Smiths Industries unsecur sr unsubord 7.25% /2016 (GBP) 325,000 569,887 0.10Hammerson unsecur sr unsubord 6.25% /2008 500,000 551,473 0.09MBNA Europe Funding bnk gtd SerEMTN 6.5% /2007 450,000 481,333 0.08Allied Domecq Financial Services co gtd Ser EMTN 6.625% /2011 (GBP) 300,000 464,886 0.08Pearson 6.125% /2007 425,000 448,843 0.08TI Group unsecur unsubord 6.375% 18/07/2005 80,000 80,112 0.01


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 59




Investment

Investment


FranceFrance Telecom unsecur sr unsubord SerEMTN 8.125% /2033 1,060,000 1,631,975 0.27Thales sr nts SerEMTN 4.375% /2011 1,470,000 1,564,301 0.26France Telecom unsecur sr unsubord SerEMTN 7% /2009 1,320,000 1,549,020 0.26Veolia Environnement unsecur sr unsubord SerEMTN 4.875% /2013 1,150,000 1,267,732 0.21BNP Paribas subord SerEMTN 3.125% /2015 (1) 1,100,000 1,109,381 0.19Michelin (C.G.D.E.) subord SerTSDR 6.375% /2033 (1) 950,000 1,080,373 0.18Vivendi Universal sr nts 3.625% /2010 1,020,000 1,036,693 0.17Alcatel unsecur unsubord 4.375% /2009 950,000 985,768 0.17SFR 3.375% /2012 900,000 897,995 0.15Vivendi Environnement sr nts SerEMTN 5.875% /2008 650,000 712,238 0.12Thomson CSF sr nts SerEMTN 6.125% 14/11/2005 600,000 608,130 0.10Crown European co gtd 6.25% /2011 500,000 527,500 0.09France Telecom unsecur sr unsubord SerEMTN 7.25% /2013 340,000 426,059 0.07


ItalyOlivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 2,550,000 3,105,517 0.53Olivetti Finance co gtd SerEMTN 7.75% /2033 750,000 1,039,853 0.17Sanpaolo IMI subord SerEMTN 3.75% /2015 (1) 935,000 969,642 0.16


SwedenABB International Finance unsecur sr unsubord SerEMTN 11% /2008 1,165,000 1,377,786 0.23Telefonaktiebolaget LM Ericsson SerEMTN 6.75% /2010 800,000 898,000 0.15Assa Abloy nts SerEMTN 5.125% /2006 115,000 119,261 0.02




FinlandStora Enso nts SerEMTN 3.25% /2010 1,900,000 1,905,177 0.32


MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 1,450,000 1,643,574 0.28


SwitzerlandAdecco Financial Service co gtd 6% /2006 1,200,000 1,230,299 0.21



AustraliaAustralia & New Zealand Banking Group sr nts SerEMTN 3.125% /2010 1,200,000 1,224,296 0.20


CanadaAbitibi-Consolidated unsecur debentures 8.85% /2030 (USD) 900,000 716,813 0.12Abitibi-Consolidated unsecur nts 8.55% /2010 (USD) 275,000 238,350 0.04


IrelandMDP Acquisitions unsecur sr nts SerEUR 10.125% /2012 400,000 414,000 0.07


LuxembourgSES Global unsecur sr unsubord co gtd 4.5% /2008 150,000 158,300 0.03




Total NAV 597,413,480 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 60


European Currencies High Yield Bond Fund

ChemicalsCognis Deutschland Ser144A priv plmt 6.895% /2013 (1) 900,000 922,500 1.72Kronos International sr secur SerEUR 8.875% /2009 770,000 820,050 1.53SGL Carbon Luxembourg sr nts Ser144A priv plmt 8.5% /2012 650,000 715,000 1.33Rockwood Specialities Group co gtd Ser144A priv plmt 7.625% /2014 700,000 705,250 1.31Rhodia sr nts 8% /2010 700,000 700,000 1.30Lucite International Finance sr nts SerA&B 10.25% /2010 655,000 691,025 1.28Rhodia sr subord 9.25% /2011 635,000 631,825 1.17Ineos Vinyls Finance co gtd Ser144A priv plmt 9.125% /2011 500,000 512,500 0.95Huntsman International sr subord SerRegS 7.5% /2015 500,000 503,750 0.93Nalco sr nts 7.75% /2011 400,000 434,000 0.81Equistar Chemicals / Equistar Funding unsecur sr nts 10.625% /2011 (USD) 220,000 201,684 0.37Nalco sr subord nts 9% /2013 140,000 153,300 0.28IMC Global co gtd unsecur sr SerB 10.875% /2008 (USD) 23,000 21,538 0.04


ManufacturingManitowoc unsecur sr subord 10.375% /2011 760,000 843,600 1.57MTU Aero Engines Investment GmbH & Co sr nts Ser144A priv plmt 8.25% /2014 650,000 757,673 1.41ABB International Finance unsecur sr unsubord SerEMTN 11% /2008 630,000 747,338 1.39Flowserve Finance unsecur co gtd SerEUR 12.25% /2010 627,000 676,376 1.25Flender Holding sr nts Ser144A priv plmt 11% /2010 475,000 578,313 1.07ABB International Finance sr 6.5% /2011 500,000 566,249 1.05Levi Strauss & Co sr unsubord 8.625% /2013 550,000 528,000 0.97Heckler & Koch secur sr Ser144A priv plmt 9.25% /2011 415,000 466,875 0.87Propex Fabrics co gtd 10% /2012 (USD) 510,000 404,074 0.75NMHG Holding unsecur co gtd 10% /2009 (USD) 445,000 389,493 0.72Amsted Industries sr nts Ser144A priv plmt 10.25% /2011 (USD) 295,000 264,322 0.49Oxford Industries sr nts 8.875% /2011 (USD) 130,000 115,941 0.22

Total for Manufacturing 11.76

MetalsCrown European co gtd 6.25% /2011 1,300,000 1,371,500 2.55Corus Group unsecur co gtd 6.75% /2008 (GBP) 550,000 802,050 1.49Owens Brockway Glass Container co gtd 6.75% / 2014 725,000 742,219 1.38Impress Metal Packaging sr subord 9.875% /2007 (DEM) 1,275,000 660,046 1.22Trimas unsecur co gtd 9.875% /2012 (USD) 510,000 357,531 0.66Gerresheimer Holdings co gtd Ser144A priv plmt 7.875% /2015 300,000 299,250 0.55Murrin Murrin Holdings secur sr nts defaulted 9.375% /2007 (2) (USD) 905,000 75 0.00

Total for Metals 7.85

I

A

B

0.09% (0.09)% (0.58)% 1.89%2.0

1.5

1.0

0.5

0.0

-0.5

-1.0I A B




Merrill Lynch European Currency Constrained HighYield Index (expressed in Euro)


INVESTMENT AIMS

To provide an attractive rate of return,measured in Euro, through investmentsworldwide primarily in lower rated andunrated fixed income securities issued bygovernments, agencies and corporations that offer a yield above that generally availableon debt securities in the four highest ratingcategories of S&P or Moody’s denominated in European currencies.


Investment


Marketvalue

% of netassets


specified

952347-1-007 x-cat 8/22/05 17:52 Page 61




Investment

Investment

Diversified MediaLighthouse International sr nts Ser144A priv plmt 8% /2014 1,265,000 1,310,856 2.44EMI Group unsecur sr unsubord Ser144A priv plmt 8.625% /2013 805,000 937,664 1.74WDAC Subsidiary sr nts Ser144A priv plmt 8.5% /2014 495,000 472,725 0.88Primedia sr unsecur co gtd 8.875% /2011 (USD) 450,000 392,936 0.72Houghton Mifflin sr subord nts 9.875% /2013 (USD) 295,000 262,486 0.49EMI Group unsecur unsubord co gtd 8.25% /2008 (GBP) 140,000 228,990 0.42Interpublic Group of Companies nts 5.4% /2009 (USD) 165,000 130,640 0.24Interpublic Group of Companies nts 6.25% /2014 (USD) 150,000 116,470 0.22Houghton Mifflin sr disc nts step cpn 0% to 15/10/2008 / 11.5% to 15/10/2013 (USD) 105,000 64,027 0.11Houghton Mifflin sr nts unsecur 8.25% /2011 (USD) 55,000 47,569 0.09

Total for Diversified Media 7.35

TelecommunicationsAlcatel unsecur unsubord 4.375% /2009 1,520,000 1,573,200 2.91NTL Cable co gtd 8.75% /2014 575,000 602,313 1.11Axtel co gtd 11% /2013 (USD) 540,000 488,323 0.91Advanstar Communications secur 10.768% /2008 (1) (USD) 343,875 306,117 0.57Qwest Services secur 13.5% /2010 (USD) 190,000 182,851 0.34Satelites Mexicanos sr nts SerB defaulted 10.125% 01/11/2004 (USD) 325,000 144,253 0.27PanAmSat co gtd 9% /2014 (USD) 81,000 73,584 0.15Qwest Services secur 14% /2014 (USD) 50,000 50,400 0.09Viatel Holding 4,806 1,136 0.00KPNQwest unsecur sr defaulted 10% /2012 240 2 0.00Jazztel Wts exp. 15/07/2010 (2) 1,500 0 0.00Exodus Communications unsecur sr nts defaulted 11.625% /2010 (2) (USD) 321,203 0 0.00XO Communications sr disc nts defaultedstep cpn 12.25% to 01/06/2009 (2) (USD) 2,270,000 0 0.00Rhythms Netconnections unsecur sr disc nts SerB defaulted step cpn 13.5% to 15/05/2008 (2) (USD) 4,404,838 0 0.00Rhythms Netconnections unsecur sr nts SerB defaulted 14% /2010 (2) (USD) 2,727,274 0 0.00

Total for Telecommunications 6.35

CableCablecom Luxembourg co gtd Ser144A priv plmt 9.375% /2014 935,000 1,060,056 1.98Kabel Deutschland co gtd sr Ser144A priv plmt 10.75% /2014 625,000 723,438 1.34TVN Finance unsecur sr co gtd Ser144A priv plmt 9.5% /2013 500,000 578,360 1.07Telenet Communications sr nts Ser144A priv plmt 9% /2013 500,000 567,500 1.05Renaissance Media Group unsecur sr disc co gtd step cpn 10% to 15/04/2008 (USD) 185,000 152,715 0.28

Total for Cable 5.72

Food & TobaccoKoninklikje Ahold unsecur sr unsubord SerEMTN 5.875% /2008 800,000 855,000 1.58United Biscuits Finance sr subord co gtd 10.75% /2011 (GBP) 485,000 728,913 1.35Ahold Finance USA co gtd SerEMTN 5.875% / 2012 525,000 563,456 1.05PPC Escrow unsecur subord nts 9.25% /2013 (USD) 390,000 360,767 0.67Smithfield Foods unsecur sr nts SerB 8% /2009 (USD) 320,000 286,722 0.53

Total for Food & Tobacco 5.18

HousingEco-Bat Finance co gtd sr Ser144A priv plmt 10.125% /2013 735,000 834,225 1.55Grohe Holding co gtd Ser144A priv plmt 8.625% /2014 725,000 677,875 1.26Interface sr subord nts 9.5% /2014 (USD) 510,000 431,576 0.80Technical Olympic USA unsecur sr co gtd 9% /2010 (USD) 425,000 363,173 0.67Nortek sr subord nts 8.5% /2014 (USD) 310,000 237,898 0.44

Total for Housing 4.72

Health CareFresenius Medical Care Capital Trust III co gtd 7.375% /2008 2,000,000 1,094,165 2.03Safilo Capital International sr nts Ser144A priv plmt 9.625% /2013 600,000 652,500 1.21Community Health sr subord nts 6.5% /2012 (USD) 510,000 429,460 0.80Fresenius Medical Care Capital Trust secur co gtd SerEUR 7.375% /2011 300,000 325,500 0.60

Total for Health Care 4.64

EnergyEl Paso nts 7.125% /2009 900,000 936,000 1.74Antargaz Finance sr nts SerREGS 10% /2011 520,000 575,250 1.07Hilcorp Energy I / Hilcorp Finance sr nts Ser144A priv plmt 10.5% /2010 (USD) 375,000 345,335 0.64Plains Exploration & Production sr nts 7.125% /2014 (USD) 250,000 222,964 0.41Northwest Pipeline sr unsecur co gtd 8.125% /2010 (USD) 50,000 45,215 0.08

Total for Energy 3.94

Forest ProductsKappa Beheer sr subord co gtd SerEUR step cpn 12.5% to 15/07/2009 850,000 890,375 1.65Clondalkin Industries sr nts Ser144A priv plmt 8% /2014 700,000 740,250 1.37Abitibi-Consolidated nts 6% /2013 (USD) 435,000 333,824 0.62

Total for Forest Product 3.64

RetailVictoria Acquisition III sr nts Ser144A priv plmt 7.875% /2014 900,000 832,499 1.54Buhrmann US sr subord nts 8.25% /2014 (USD) 440,000 364,127 0.68Petro Stopping Centers / Petro Financial secur 9% /2012 (USD) 400,000 335,172 0.62Jean Coutu Group sr subord nts 8.5% /2014 (USD) 350,000 287,468 0.53Jean Coutu Group sr nts 7.625% /2012 (USD) 165,000 142,023 0.26

Total for Retail 3.63

Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 62




Investment

Investment

FinancialsBarry Callebaut Services sr subord Ser144A priv plmt 9.25% /2010 500,000 563,750 1.06MDP Acquisitions unsecur sr nts SerEUR 10.125% /2012 450,000 470,250 0.87General Motors Acceptance unsecur sr unsubord SerEMTN 5.375% /2011 500,000 448,813 0.83Medcath Holdings 9.875% /2012 (USD) 315,000 293,348 0.54

Total for Financials 3.30

TransportationFiat Finance & Trade unsecur sr unsubord co gtd SerEMTN 5.75% /2006 1,050,000 1,059,450 1.97General Motors unsecur 7.25% / 2013 830,000 719,105 1.33

Total for Transportation 3.30

Information TechnologyXerox unsecur sr nts 9.75% /2009 750,000 892,500 1.66Riverdeep Group sr nts Ser144A priv plmt 9.25% /2011 750,000 813,750 1.51

Total for Information Technology 3.17

UtilityAES sr nts 8.375% /2011 (GBP) 431,000 644,549 1.19Nevada Power secur SerA 8.25% /2011 (USD) 275,000 257,406 0.48TNP Enterprises sr unsecur subord nts SerB 10.25% /2010 (USD) 210,000 183,893 0.34PSEG Energy Holdings unsecur nts 7.75% /2007 (USD) 60,000 51,520 0.10

Total for Utility 2.11

HouseholdJohnsondiversey sr subord nts SerEURO9.625% /2012 825,000 812,625 1.51

Total for Household 1.51

Wireless CommunicationsSBA Communications sr nts 8.5% /2012 (USD) 510,000 458,020 0.84SBA Telecommunications / SBA Communications sr disc nts step cpn 0% to 15/12/2007 / 9.75% to 15/12/2011 (USD) 130,000 99,764 0.19

Total for Wireless Communications 1.03

Gaming & LeisureStation Casinos sr subord nts Ser144A priv plmt 6.875% /2016 (USD) 280,000 239,847 0.44Isle of Capri Casinos sr subord nts 7% /2014 (USD) 225,000 188,534 0.35

Total for Gaming & Leisure 0.79

Commercial ServicesAllied Waste North America secur 6.375% /2011 (USD) 350,000 279,483 0.52

Total for Commercial Services 0.52

Government BondUS Treasury Bill 0% 14/07/2005 (3) 50,000.00 41,139.00 0.08

Total for Government Bond 0.08

Total transferable securities admitted to official exchange listing or dealt in on another regulated market 50,461,436 93.61


Commercial ServicesIron Mountain sr subord Ser144A priv plmt7.25% /2014 (GBP) 550,000 773,405 1.43

Total for Commercial Services 1.43

CableAntenna TV sr nts Ser144A priv plmt 7.25% /2015 600,000 585,000 1.09

Total for Cable 1.09

BroadcastingPaxson Communications Pfd Stock 14 74,517 0.14Paxson 98,311 5,261 0.01

Total for Broadcasting 0.15

TelecommunicationsXO Communications Pfd Stock 27,911 232 0.00Maxcom Telecom sr unsecur co gtd defaulted step cpn 0% to 01/03/2006 / 10% to 01/03/2007 (2) (USD) 448 11 0.00Esprit Telecom Group sr nts defaulted 11% /2008 (2) (DEM) 10,090,000 0 0.00XO Communications unsecur sr nts defaulted 10.75% /2009 (2) (USD) 1,350,000 0 0.00

Total for Telecommunications 0.00

Total other transferable securities not admitted to official exchange listing or dealt in on another regulated market 1,438,426 2.67


Total NAV 53,904,055 100.00

(1) Variable coupon rates are those quoted as of 30 June 2005.(2) This security is valued at its fair market value. See note 2(a).(3) Security held as collateral against bond futures positions by the broker.

Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 63


Global Bond Fund

Government Bonds

FranceGovernment of France OAT 5.5% /2029 (EUR) 21,200,000 32,998,409 10.03French Treasury Note BTAN 3% /2008 (EUR) 8,600,000 10,610,648 3.22Government of France OAT 5.5% /2010 (EUR) 3,000,000 4,102,047 1.25


GermanyBundesobligation Ser139 4% /2007 (EUR) 12,000,000 14,921,992 4.54Bundesrepublik Ser97 6.5% /2027 (EUR) 5,800,000 10,027,933 3.05Deutsche Bundesrepublik Ser04 4.25% /2014 (EUR) 7,300,000 9,617,891 2.92


JapanDevelopment Bank of Japan unsecur govt gtd 2.875% /2006 (JPY) 1,100,000,000 10,351,786 3.14Japan Bank for International Cooperation govt gtd 0.35% /2008 (JPY) 700,000,000 6,379,963 1.94Development Bank of Japan govt gtd SerINTL 1.7% /2022 (JPY) 670,000,000 6,072,944 1.85


United KingdomUK Treasury 5% /2014 (GBP) 9,600,000 18,298,164 5.56


Supra-NationalEuropean Investment Bank nts SerEMTN 2.125% /2007 (JPY) 1,200,000,000 11,355,596 3.45Inter-American Development Bank unsecur 1.9% /2009 (JPY) 300,000,000 2,895,822 0.88International Bank for Reconstruction & Development nts 5% /2006 2,000,000 2,019,000 0.61

Total for Supra-National 4.94

NetherlandsGovernment of Netherlands 5% /2011 (EUR) 10,000,000 13,580,076 4.13


CanadaGovernment of Canada 5.25% /2012 (CAD) 9,300,000 8,292,443 2.52Province of Ontario nts SerEMTN 1.875% /2010 (JPY) 200,000,000 1,936,761 0.59


United States of AmericaUS Treasury 3.5% /2006 7,000,000 6,994,531 2.12US Treasury 5.5% /2028 1,000,000 1,169,063 0.36


ItalyRepublic of Italy SerINTL 0.375% /2006 (JPY) 450,000,000 4,086,061 1.24


I

A

B

0

-1

-2

-3

-4

-5

-6

(4.84)% (5.04)% (5.49)% (3.96)%

I A B




Citi World Government Bond Index (expressed in USdollars)

IX

AX

0

-1

-2

-3

-4

-5

-6

(0.42)% (0.45)% (3.96)%

IX AX



Citi World Government Bond Index (expressed in USdollars)


INVESTMENT AIMS

To provide an attractive rate of return,measured in US Dollars, through market,instrument and currency selection. The Fundconsists of domestic, international andEuromarket fixed income securities of varyingmaturities denominated in US Dollars andother currencies, including emerging markets.


Investment


Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 64

Global Bond Fund



Investment

Investment

Government Bonds (continued)

DenmarkKingdom of Denmark 5% /2013 (DKK) 21,000,000 3,917,310 1.19


SwedenSwedish Government Ser1045 5.25% /2011 (SEK) 17,000,000 2,485,241 0.76


PolandGovernment of Poland 5.75% /2008 (PLN) 6,000,000 1,844,414 0.56


AustraliaNew South Wales Treasury govt gtd 7% /2010 (AUD) 1,700,000 1,391,127 0.42


Russian FederationRussian Federation unsubord SerRegS step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 1,025,000 1,140,979 0.35


NorwayGovernment of Norway 6.75% /2007 (NOK) 5,200,000 843,790 0.26



Corporate Bonds

United States of AmericaGeneral Electric Capital unsecur sr unsubord SerEMTN 0.75% /2009 (JPY) 160,000,000 1,466,299 0.45Fannie Mae unsecur sr nts 2.125% /2007 (JPY) 150,000,000 1,419,178 0.43Ford Motor Credit sr nts SerEMTN 5.75% /2009 (EUR) 950,000 1,126,418 0.34Marsh & McLennan Cos nts 5.375% /2014 940,000 935,899 0.28M&I Marshall & Ilsley Bank nts SerBKNT 3.8% /2008 835,000 829,509 0.25MGM Mirage sr nts 6.75% /2012 780,000 804,274 0.24Georgia-Pacific sr unsecur co gtd 8.875% /2010 665,000 759,237 0.23General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 (EUR) 600,000 709,003 0.22HCA unsecur sr nts 6.3% /2012 685,000 701,526 0.21Tyco International Group unsecur unsubord co gtd 6.125% /2007 (EUR) 510,000 650,482 0.20Philip Morris Finance sr unsecur unsubord co gtd 5.625% /2008 (EUR) 500,000 647,274 0.20Health Net unsecur sr nts 9.875% /2011 520,000 619,985 0.19St Paul Travelers sr nts 5.01% /2007 610,000 618,029 0.19


United States of America (continued)Owens Brockway Glass Container co gtd 6.75% /2014 (EUR) 490,000 611,293 0.19SLM nts 4% /2010 605,000 597,563 0.18Interpublic Group of Companies nts 5.4% /2009 610,000 584,563 0.18Lenfest Communications unsecur sr nts 7.625% /2008 520,000 558,528 0.17General Motors unsecur 7.25% /2013 (EUR) 530,000 553,481 0.17Washington Mutual subord nts 8.25% /2010 475,000 547,187 0.17Xerox sr nts 6.875% /2011 520,000 546,578 0.17Zurich Finance USA unsecur co gtd SerEMTN 5.75% /2023 (1) (EUR) 400,000 537,611 0.16Household Finance unsecur sr unsubord SerEMTN 6.5% /2009 (EUR) 380,000 521,629 0.16Echostar DBS co gtd 6.625% /2014 525,000 520,880 0.16PSEG Energy Holdings unsecur nts 7.75% /2007 500,000 517,451 0.16COX Communications nts 4.625% /2010 500,000 498,098 0.15Waste Management sr unsecur co gtd 6.875% /2009 460,000 497,698 0.15Fisher Scientific International sr subord nts 6.75% /2014 445,000 467,201 0.14World Financial Properties pass thru certs Ser144A priv plmt 6.95% /2013 407,657 441,463 0.13Sempra Energy sr nts 4.621% /2007 420,000 422,626 0.13General Motors Acceptance unsecur sr unsubord SerEMTN 5.375% /2011 (EUR) 350,000 378,683 0.12Corning nts Ser144A priv plmt 6.25% /2010 (EUR) 275,000 369,590 0.11Xerox unsecur sr nts 9.75% /2009 (EUR) 250,000 358,561 0.11Altria Group nts 7% /2013 320,000 357,804 0.11Interpublic Group of Companies nts 6.25% /2014 375,000 351,999 0.11Starwood Hotels & Resorts Worldwide sr co gtd 7.875% /2012 310,000 351,075 0.11Farmers Exchange Capital nts Ser144A priv plmt 7.05% /2028 320,000 345,035 0.10AT&T Wireless Services sr nts unsecur 8.75% /2031 240,000 333,045 0.10Harrah’s Operating Ser144A priv plmt 5.625% /2015 305,000 308,681 0.09World Financial Properties pass thru certs Ser144A priv plmt 6.91% /2013 256,642 277,929 0.08Residential Capital nts Ser144A priv plmt 6.375% /2010 275,000 276,397 0.08Meritor Automotive nts 6.8% /2009 220,000 214,595 0.07Continental Airlines sr pass thru certs Ser991A 6.545% /2019 201,820 201,621 0.06Residential Capital nts Ser144A priv plmt 6.375% /2010 190,000 190,966 0.06WellPoint nts 3.75% /2007 180,000 177,824 0.05Lear unsecur co gtd SerB 8.11% /2009 170,000 174,773 0.05WellPoint nts 4.25% /2009 165,000 164,040 0.05Safeway sr unsecur debentures 7.25% /2031 140,000 161,136 0.05ArvinMeritor unsecur sr nts 8.75% /2012 120,000 124,165 0.04Continental Airlines pass thru certs Ser974A 6.9% /2018 100,371 99,626 0.03Marsh & McLennan Cos unsecur sr nts 5.875% /2033 80,000 75,998 0.02


United KingdomASIF III Jersey secur SerEMTN 0.95% /2009 (JPY) 475,000,000 4,346,931 1.32HBOS subord nts SerEMTN 0.55% /2013 (1) (JPY) 170,000,000 1,532,511 0.47BOC Group unsecur unsubord 1% /2006 (JPY) 160,000,000 1,456,027 0.44

Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 65

Global Bond Fund



Investment

Investment


United Kingdom (continued)Tesco unsecur sr unsubord SerEMTN 0.7% /2006 (JPY) 120,000,000 1,091,431 0.33Cadbury Schweppes Investments co gtd SerEMTN 4.25% /2009 (EUR) 680,000 859,915 0.26BAT International Finance unsecur sr unsubord co gtd SerEMTN 5.125% /2013 (EUR) 600,000 786,932 0.24WPP Finance UK co gtd 5.875% /2014 720,000 760,447 0.23HBOS subord nts SerEMTN 4.5% /2030 (EUR) 610,000 759,380 0.23Allied Domecq Financial Services co gtd SerEMTN 6.625% /2011 (GBP) 400,000 747,134 0.23NGG Finance sr unsecur unsubord co gtd 5.25% /2006 (EUR) 600,000 746,931 0.23MBNA Europe Funding gtd SerEMTN 4.5% /2009 (EUR) 450,000 574,437 0.17WPP Group unsecur unsubord 6% /2008 (EUR) 400,000 527,606 0.16HSBC Holdings subord 3.625% /2020 (EUR) 420,000 505,610 0.15Nationwide Building Society nts Ser144A priv plmt 4.25% /2010 355,000 354,038 0.11Systems 2001 Asset Trust pass thru certs Ser144A priv plmt 6.664% /2013 212,302 231,132 0.07


NetherlandsBank Nederlandse Gemeenten unsecur sr unsubord 0.8% /2008 (JPY) 430,000,000 3,969,037 1.21Rabobank Nederland nts SerEMTN 0.2% /2008 (JPY) 350,000,000 3,166,549 0.96Deutsche Telekom International Financeunsecur co gtd 8.125% /2012 (EUR) 650,000 1,015,073 0.31Munich Re Finance unsecur subord co gtd 6.75% /2023 (1) (EUR) 600,000 862,269 0.26Koninklikje Ahold unsecur sr unsubord SerEMTN 5.875% /2008 (EUR) 550,000 707,757 0.22Altadis Finance co gtd 4.25% /2008 (EUR) 200,000 253,531 0.08RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 (EUR) 61,000 78,736 0.02


GermanyKfW - Kreditanstalt fuer Wiederaufbau govt gtd 1.85% /2010 (JPY) 1,000,000,000 9,716,609 2.95


AustriaOesterreichische Kontrollbank unsecur gvt gtd 1.8% /2010 (JPY) 990,000,000 9,566,086 2.91


IrelandDepfa ACS Bank 0.75% /2008 (JPY) 700,000,000 6,448,670 1.96


FranceCompagnie de Financement Foncier nts SerEMTN 0.4% /2006 (JPY) 400,000,000 3,631,058 1.10France Telecom unsecur sr unsubord SerEMTN 7% /2009 (EUR) 510,000 721,384 0.22


France (continued)Vivendi Universal sr nts 3.625% /2010 (EUR) 450,000 551,284 0.17Michelin (C.G.D.E.) subord SerTSDR 6.375% /2033 (1) (EUR) 400,000 548,306 0.17Crown European co gtd 6.25% /2011 (EUR) 330,000 419,643 0.13France Telecom unsecur sr unsubord SerEMTN 8.125% /2033 (EUR) 200,000 371,151 0.11


JapanJapan Finance Corp for Municipal Enterprises unsecur unsubord govt gtd SerINTL 1.55% /2012 (JPY) 300,000,000 2,872,298 0.87Japan Finance Corp for Municipal Enterprises govt gtd SerINTL 1.35% /2013 (JPY) 300,000,000 2,810,626 0.85


ItalyOlivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 (EUR) 640,000 939,479 0.29Olivetti Finance co gtd SerEMTN 7.75% /2033 (EUR) 435,000 726,964 0.22


SwedenTelefonaktiebolaget LM Ericsson SerEMTN 6.75% /2010 (EUR) 500,000 676,503 0.21ABB International Finance unsecur sr unsubord SerEMTN 11% /2008 (EUR) 450,000 641,478 0.19


CanadaAbitibi-Consolidated unsecur debentures 8.85% /2030 600,000 576,007 0.18Bowater Canada Finance unsecur co gtd 7.95% /2011 355,000 378,075 0.11Abitibi-Consolidated unsecur nts 8.55% /2010 200,000 208,942 0.06


SpainSantander International Debt bnk gtd SerEMTN 2.166% /2008 (1) (EUR) 950,000 1,143,918 0.35


AustraliaMantis Reef nts Ser144A priv plmt 4.692% /2008 845,000 847,009 0.26


SwitzerlandAdecco Financial Service co gtd 6% /2006 (EUR) 550,000 679,681 0.21


MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 (EUR) 475,000 648,975 0.20


Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 66


Global Bond Fund


Investment


Hong KongHutchison Whampoa International co gtd SerRegS 6.5% /2013 425,000 460,056 0.14




United States of AmericaCaterpillar Financial Asset Trust 2005-A A3 3.9% /2009 1,975,000 1,973,122 0.59Daimler Chrysler Auto Trust 2005-B A3 4.04% /2009 1,775,000 1,778,011 0.54Ford Credit Auto Owner Trust 2005-B A3 4.17% /2009 1,475,000 1,479,389 0.45USAA Auto Owner Trust 2005-1 A3 3.9% /2009 1,375,000 1,373,680 0.42Wachovia Auto Owner Trust 2005-A A3 4.06% /2009 1,175,000 1,177,360 0.36Honda Auto Receivables Owner Trust 2005-2 A3 3.93% /2009 1,175,000 1,174,724 0.36USAA Auto Owner Trust 2004-3 A3 3.16% /2009 1,175,000 1,163,333 0.35Wachovia Auto Owner Trust 2004-B A3 2.91% /2009 1,000,000 987,640 0.30CIT Equipment Collateral 2004-EF1 A3 3.5% /2008 975,000 963,698 0.29World Omni Auto Receivables Trust 2004-A A3 3.29% /2008 950,000 942,708 0.29CNH Equipment Trust 2005-A A3 4.02% /2009 900,000 900,610 0.27



Government Guaranteed Bonds

United States of AmericaFannie Mae SerEMTN 1.75% /2008 (JPY) 300,000,000 2,828,887 0.86


Total for Government Guaranteed Bonds 0.86


Total NAV 329,014,626 100.00


Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 67


Global Convertible Bond (Euro) Fund

Electrical Components & EquipmentSiemens Finance co gtd SerSIE CV 1.375% /2010 7,000,000 8,031,919 2.35Tyco International Group co gtd unsecur CV 2.75% to 15/01/2018 (USD) 6,395,000 6,870,639 2.00Toshiba unsecur CV 0% /2011 (JPY) 790,000,000 6,039,293 1.76SPX unsecur sr nts CV 0% /2021 (USD) 6,510,000 3,503,847 1.02


Integrated Telecommunication ServicesSK Telecom nts CV 0% /2009 (USD) 10,510,000 9,090,036 2.66France Telecom CV 1.6% /2009 180,000 4,950,000 1.44Deutsche Telekom International Finance co gtd CV 6.5% /2006 3,350,000 3,825,700 1.12Tiscali Finance unsecur unsubord co gtd CV 4.25% /2006 3,475,000 3,441,988 1.00Colt Telecom Group sr nts SerRegS CV 2% /2007 695,000 831,539 0.24


Investment Banking & BrokerageGoldman Sachs Group Pfd Stock 485,310 10,904,427 3.18Feringghi Capital co gtd SerRegS CV 0% /2009 (USD) 7,600,000 6,659,891 1.94


Consumer FinanceAmerican Express sr nts Ser144A priv plmt step cpn CV 1.85% to 01/12/2006 / 0% to 01/12/2033 (USD) 9,150,000 7,761,957 2.26Providian Financial nts CV 0% /2021 (USD) 15,980,000 7,175,654 2.09


Electric UtilitiesRWE unsecur CV 0% /2007 9,600,000 9,307,200 2.72Reliance Energy unsecur sr unsubord CV 0% /2009 (USD) 6,675,000 5,229,770 1.52


Computer Storage & PeripheralsASML Holding subord SerRegS CV 5.75% /2006 (USD) 5,960,000 5,327,830 1.55Brocade Communications Systems unsecur subord nts CV 2% /2007 (USD) 6,380,000 4,988,717 1.45Lite-On Technology CV 0% /2009 (USD) 3,830,000 3,316,516 0.97


Wireless Telecommunication ServicesNextel Communications sr nts CV5.25% /2010 (USD) 10,610,000 8,868,441 2.58Millicom International Cellular CV 4% /2010 (USD) 5,650,000 4,425,834 1.29


(1.48)% (1.71)% (2.22)% (1.63)%0

-0.5

-1.0

-1.5

-2.0

-2.5I A B

I

A

B




Merrill Lynch G300 Global Convertible Index(expressed in local currency)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in Euro, through investmentprimarily in convertible bonds issued bycompanies organised or operating in eitherthe developed or emerging markets which willbe denominated in global currencies.


Investment


Marketvalue

% of netassets


specified

952347-1-007 x-cat 8/22/05 17:52 Page 68




Investment

Investment

SemiconductorsSTMicroelectronics sr nts SerRegS CV 0% /2013 (USD) 8,730,000 6,865,017 2.00International Rectifier unsecur subord nts CV 4.25% /2007 (USD) 6,375,000 5,209,586 1.52


Other Diversified Financial ServicesKBC Internationale Financieringsmaatschappij nts SerEMTN CV 0% /2009 (GBP) 5,370,000 7,105,361 2.07Forester unsecur unsubord co gtd CV 3.75% /2009 (GBP) 2,325,000 4,246,752 1.24


Gas UtilitiesXinao Gas Holdings CV 0% /2009 (HKD) 33,900,000 3,771,971 1.10El Paso Pfd Stock (USD) 4,230 3,757,640 1.10El Paso unsecur debentures CV 0% /2021 (USD) 8,130,000 3,642,262 1.06


FootwearReebok International debentures SerB CV 2% /2024 (USD) 8,140,000 7,116,211 2.08Yue Yuen Industrial Holdings unsubord CV 0% /2008 (USD) 4,735,000 3,919,481 1.14

Total for Footwear 3.22

IT Consulting & Other ServicesLogicaCMG co gtd CV 2.875% /2008 7,035,000 6,722,576 1.96CapGemini sr unsecur SerCAP CV 1% /2012 7,729,700 2,912,937 0.85

Total for IT Consulting & Other Services 2.81

Auto Parts & EquipmentValeo unsubord SerFR CV 2.375% /2011 11,025,000 5,438,633 1.59Lear sr unsecur co gtd CV 0% /2022 (USD) 9,055,000 3,408,725 0.99

Total for Auto Parts & Equipment 2.58

Paper PackagingSealed Air sr nts Ser144A priv plmt CV 3% /2033 (USD) 8,690,000 7,146,441 2.08

Total for Paper Packaging 2.08

Casinos & GamingInternational Game Technology debentures sr unsecur CV 0% /2033 (USD) 13,050,000 7,118,576 2.07


Data Processing & Outsourced ServicesFair Isaac sr nts SerB CV 1.5% /2023 (USD) 7,705,000 6,504,200 1.90


Application SoftwareMercury Interactive unsecur nts CV 4.75% /2007 (USD) 7,890,000 6,439,447 1.88


Construction & Farm Machinery & Heavy TrucksAgco sr subord nts CV 1.75% /2033 (USD) 7,185,000 6,251,519 1.82


ReinsuranceSwiss Re American Holding unsecur subord co gtd SerRegS CV 3.25% /2021 (1) (USD) 8,000,000 6,209,981 1.81


Government BondsSwiss Confederation unsecur sr CV 0.25% /2007 (CHF) 9,595,000 6,198,158 1.81


AdvertisingPublicis Groupe unsubord CV 0.75% /2008 11,749,100 3,460,110 1.01Interpublic Group sr nts unsecur CV 4.5% /2023 (USD) 2,600,000 2,620,816 0.76


Multi-line InsuranceSwiss RE Germany Holding co gtd SerRUKN CV 6.125% /2007 5,575,000 5,452,350 1.59


Leisure FacilitiesRank Group unsecur unsubord CV 3.875% /2009 (GBP) 3,630,000 5,321,345 1.55


Diversified Commercial & Professional ServicesExult unsecur sr nts CV 2.5% /2010 (USD) 6,650,000 5,075,704 1.48

Total for Diversified Commercial & Professional Services 1.48

Diversified BanksMarshall & Ilsley Pfd Stock 148,950 3,421,766 1.00AMCORP Capital Labuan co gtd SerRegS CV 1% /2010 (USD) 2,100,000 1,515,742 0.44


Regional BanksCitibank unsubord CV 2.875% /2007 (USD) 5,400,000 4,832,685 1.41


GoldAngloGold Holdings co gtd SerRegS CV 2.375% /2009 (USD) 6,200,000 4,817,112 1.40

Total for Gold 1.40

DistributorsRallye CV 3.25% /2013 5,411,000 4,741,389 1.38


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 69




Investment

Investment

Photographic ProductsEastman Kodak sr nts CV 3.375% /2033 (USD) 5,020,000 4,482,329 1.31


Broadcasting & Cable TVLiberty Media unsecur sr debentures CV 0.75% /2023 (USD) 4,935,000 4,350,137 1.27


Communications EquipmentNortel Networks unsecur co gtd CV 4.25% /2008 (USD) 5,590,000 4,333,311 1.26


Life & Health InsuranceSwiss Life unsecur CV 0.625% /2010 (CHF) 6,325,000 4,189,947 1.22


Food RetailAlbertson’s Pfd Stock 216,973 4,017,785 1.17


Specialty ChemicalsTata Chemicals unsubord CV 1% /2010 (USD) 4,420,000 3,737,574 1.09


Construction & EngineeringABB International Finance SerABBN CV 3.5% /2010 (CHF) 4,700,000 3,507,215 1.02


Automobile ManufacturersTata Motors unsecur unsubord Ser2 CV 1% /2011 (USD) 4,030,000 3,201,332 0.93

Total for Automobile Manufacturers 0.93

Oil & Gas Exploration & ProductionChesapeake Energy Pfd Stock 31,170 2,957,703 0.86


Publishing & PrintingNews Corp Finance Trust II unsecur Pfd Stock 37,790 2,921,369 0.85


Packaged Foods & MeatsRoyal Numico subord unsecur CV 3% /2010 1,080,000 1,761,524 0.51


Aerospace & DefenseBAE Systems Pfd Stock 730,000 1,566,935 0.46


Property & Casualty InsuranceXL Capital Pfd Stock 76,568 1,521,387 0.44


Alternative CarriersColt Telecom Group SerRegS CV 2% /2006 690,000 796,950 0.23

Total for Alternative Carriers 0.23


Total NAV 343,093,118 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 70


Global Convertible Bond (USD) Fund

Electrical Components & EquipmentTyco International Group co gtd unsecur CV 2.75% to 15/01/2018 1,365,000 1,767,675 2.40Siemens Finance co gtd SerSIE CV 1.375% /2010 (EUR) 1,100,000 1,521,343 2.06Toshiba unsecur CV 0% /2011 (JPY) 130,000,000 1,197,886 1.62SPX unsecur sr nts CV 0% /2021 1,025,000 664,969 0.90


Integrated Telecommunication ServicesSK Telecom nts CV 0% /2009 1,770,000 1,845,225 2.51France Telecom CV 1.6% /2009 (EUR) 43,300 1,435,273 1.94Deutsche Telekom International Finance co gtd CV 6.5% /2006 (EUR) 550,000 757,080 1.02Colt Telecom Group sr nts SerRegS CV 2% /2007 (EUR) 125,000 180,269 0.24


Investment Banking & BrokerageGoldman Sachs Group SerPFE CV 4.8% /2006 91,660 2,482,428 3.36Feringghi Capital co gtd SerRegS CV 0% /2009 1,200,000 1,267,500 1.72


Electric UtilitiesRWE unsecur CV 0% /2007 (EUR) 1,650,000 1,928,168 2.61Reliance Energy unsecur sr unsubord CV 0% /2009 1,000,000 944,375 1.28


Other Diversified Financial ServicesKBC Internationale Financieringsmaatschappij nts SerEMTN CV 0% /2009 (GBP) 1,150,000 1,834,100 2.49Forester unsecur unsubord co gtd CV 3.75% /2009 (GBP) 390,000 858,641 1.16


Gas UtilitiesEl Paso Pfd Stock 905 969,029 1.31El Paso unsecur debentures CV 0% /2021 1,740,000 939,600 1.27Xinao Gas Holdings CV 0% /2009 (HKD) 5,530,000 741,824 1.01


SemiconductorsSTMicroelectronics sr nts SerRegS CV 0% /2013 1,465,000 1,388,603 1.88International Rectifier unsecur subord nts CV 4.25% /2007 1,105,000 1,088,425 1.47


FootwearReebok International debentures SerB CV 2% /2024 1,370,000 1,443,638 1.96Yue Yuen Industrial Holdings unsubord CV 0% /2008 855,000 853,076 1.15

Total for Footwear 3.11

(1.11)% (1.36)% (1.82)% (1.63)%0

-0.5

-1.0

-1.5

-2.0I A B

I

A

B




Merrill Lynch G300 Global Convertible Index(expressed in local currency)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in US Dollars, through investmentprimarily in convertible bonds issued bycompanies organised or operating in eitherthe developed or emerging markets which willbe denominated in global currencies.


Investment


Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 71




Investment

Investment

IT Consulting & Other ServicesLogicaCMG co gtd CV 2.875% /2008 (EUR) 1,240,000 1,428,257 1.94CapGemini sr unsecur SerCAP CV 1% /2012 (EUR) 1,662,100 754,986 1.02

Total for IT Consulting & Other Services 2.96

Computer Storage & PeripheralsASML Holding subord SerRegS CV 5.75% /2006 1,275,000 1,373,813 1.86Lite-On Technology CV 0% /2009 660,000 688,875 0.93


Auto Parts & EquipmentValeo unsubord SerFR CV 2.375% /2011 (EUR) 1,937,500 1,152,036 1.56Lear sr unsecur co gtd CV 0% /2022 1,710,000 775,913 1.05

Total for Auto Parts & Equipment 2.61

Consumer FinanceAmerican Express sr nts Ser144A priv plmt step cpn CV 1.85% to 01/12/2006 / 0% to 01/12/2033 1,730,000 1,768,925 2.39


ReinsuranceSwiss Re American Holding unsecur subord co gtd SerRegS CV 3.25% /2021 (1) 1,710,000 1,599,962 2.17


AdvertisingPublicis Groupe unsubord CV 0.75% /2008 (EUR) 2,629,400 933,373 1.26Interpublic Group sr nts unsecur CV 4.5% /2023 545,000 662,175 0.90


Paper PackagingSealed Air sr nts Ser144A priv plmt CV 3% /2033 1,510,000 1,496,788 2.03

Total for Paper Packaging 2.03

Casinos & GamingInternational Game Technology debentures sr unsecur CV 0% /2033 2,275,000 1,495,813 2.02


Application SoftwareMercury Interactive unsecur nts CV 4.75% /2007 1,400,000 1,377,250 1.86


Leisure FacilitiesRank Group unsecur unsubord CV 3.875% /2009 (GBP) 750,000 1,325,224 1.79


Data Processing & Outsourced ServicesFair Isaac sr nts SerB CV 1.5% /2023 1,290,000 1,312,575 1.78


Construction & Farm Machinery & Heavy TrucksAgco sr subord nts CV 1.75% /2033 1,205,000 1,263,744 1.71


Government BondsSwiss Confederation unsecur sr CV 0.25% /2007 (CHF) 1,610,000 1,253,594 1.70


Diversified BanksMarshall & Ilsley Pfd Stock 27,880 771,997 1.05AMCORP Capital Labuan co gtd SerRegS CV 1% /2010 400,000 348,000 0.47


Multi-line InsuranceSwiss RE Germany Holding co gtd SerRUKN CV 6.125% /2007 (EUR) 900,000 1,060,948 1.44


Diversified Commercial ServicesExult unsecur sr nts CV 2.5% /2010 1,150,000 1,058,000 1.43


GoldAngloGold Holdings co gtd SerRegS CV2.375% /2009 1,060,000 992,715 1.34

Total for Gold 1.34

Wireless Telecommunication ServicesMillicom International Cellular CV 4% /2010 1,050,000 991,400 1.34


DistributorsRallye CV 3.25% /2013 (EUR) 936,700 989,331 1.34


Regional BanksCitibank unsubord CV 2.875% /2007 900,000 970,845 1.31


Photographic ProductsEastman Kodak sr nts CV 3.375% /2033 900,000 968,625 1.31


Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 72




Investment

Investment

Broadcasting & Cable TVLiberty Media unsecur sr debentures CV0.75% /2023 905,000 961,563 1.30


Communications EquipmentNortel Networks unsecur co gtd CV 4.25% /2008 1,015,000 948,391 1.28


Food RetailAlbertson’s Pfd Stock 40,002 892,845 1.21


Life & Health InsuranceSwiss Life unsecur CV 0.625% /2010 (CHF) 1,100,000 878,322 1.19


Construction & EngineeringABB International Finance SerABBN CV 3.5% /2010 (CHF) 960,000 863,472 1.17


Specialty ChemicalsTata Chemicals unsubord CV 1% /2010 700,000 713,474 0.97


Automobile ManufacturersTata Motors unsecur unsubord Ser2 CV 1% /2011 690,000 660,675 0.89

Total for Automobile Manufacturers 0.89

Oil & Gas Exploration & ProductionChesapeake Energy Pfd Stock 5,180 592,463 0.80


Publishing & PrintingNews Corp Finance Trust II unsecur Pfd Stock 0.75% /2023 5,820 542,308 0.73


Packaged Foods & MeatsRoyal Numico subord unsecur CV 3% /2010 (EUR) 230,000 452,174 0.61


Aerospace & DefenseBAE Systems Pfd Stock 130,000 336,345 0.46


Property & Casualty InsuranceXL Capital CV 6.5% /2007 11,144 266,899 0.36


Alternative CarriersColt Telecom Group SerRegS CV2% /2006 (EUR) 130,000 180,983 0.24

Total for Alternative Carriers 0.24


Total NAV 73,872,852 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 73


Short Maturity Euro Bond Fund

GermanyBundesobligation Ser142 3% /2008 55,000,000 56,287,468 9.09Bundesobligation Ser139 4% /2007 43,000,000 44,360,950 7.18Bundesobligation Ser140 4.5% /2007 40,000,000 42,022,000 6.80Nrw.bank jumbo pfandbriefe 5.25% /2008 12,000,000 12,906,270 2.09Rheinboden Hypoteken Bank Ser94 jumbo pfandbriefe 5.25% /2008 12,000,000 12,891,270 2.09Depfa Pfandbriefbank secur jumbo pfandbriefe Ser478 5% /2006 11,000,000 11,311,850 1.83Hypothekenbank in Essen jumbo pfandbriefe SerRegS 2.75% /2007 11,000,000 11,137,214 1.80Eurohypo secur jumbo pfandbriefe Ser748 4% /2007 10,000,000 10,298,500 1.67Deutsche Bank Finance bk gtd 5.375% /2012 (1) 4,000,000 4,205,800 0.68


NetherlandsGovernment of Netherlands 3% /2006 36,000,000 36,378,000 5.88Government of Netherlands 2.75% /2009 33,000,000 33,518,199 5.42Government of Netherlands 2.5% /2008 16,000,000 16,145,936 2.61Rabobank Nederland unsecur sr unsubord SerEMTN 4.875% /2006 6,000,000 6,148,650 0.99RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 3,848,000 4,120,631 0.67SNS Bank Nederland sr unsecur unsubord SerEMTN 6% /2007 3,600,000 3,896,550 0.63ING Verzekeringen unsecur sr unsubord 3.75% /2009 3,700,000 3,857,509 0.62ABN Amro Bank subord SerEMTN 4.625% /2009 3,500,000 3,750,688 0.61Unilever unsecur unsubord co gtd SerEMTN 5.125% /2006 3,500,000 3,593,332 0.58Allianz Finance II sr unsecur unsubord co gtd 4.625% /2007 3,125,000 3,295,266 0.53Cooper Industries Finance unsecur sr unsubord co gtd 6.25% 25/10/2005 3,075,000 3,110,999 0.50Bank Nederlandse Gemeenten unsecur sr unsubord SerEMTN 4.75% /2006 3,000,000 3,050,816 0.49Royal KPN unsecur sr unsubord SerEMTN 4.75% /2008 2,800,000 2,984,380 0.48Aegon unsecur sr unsubord SerEMTN 4.625% /2008 2,500,000 2,645,431 0.43DaimlerChrysler International Finance sr unsecur unsubord co gtd SerEMTN 6.125% /2006 2,500,000 2,565,925 0.42Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 2,175,000 2,262,326 0.37Volkswagen International Finance unsecur unsubord co gtd SerEMTN 4.75% /2007 2,000,000 2,075,120 0.34EADS Finance unsecur sr unsubord co gtd SerEMTN 4.625% /2010 1,300,000 1,398,803 0.23


FranceFrench Treasury Note BTAN 3% /2008 54,000,000 55,274,400 8.93French Treasury Note BTAN 4.5% /2006 30,000,000 30,771,000 4.98Dexia Municipal Agency secur collateralized SerEMTN 5.5% /2006 11,000,000 11,299,970 1.83Aventis unsecur sr unsubord SerEMTN 5% /2006 5,425,000 5,542,777 0.90Thomson CSF sr nts SerEMTN 6.125% 14/11/2005 5,250,000 5,321,138 0.86Schneider Electric unsecur sr unsubord SerEMTN 6.125% /2007 2,000,000 2,162,280 0.35


1.80% 1.62% 1.09% 2.21%2.5

2.0

1.5

1.0

0.5

0.0I A B

I

A

B




MSCI EMU Sovereign Debt Index 1-3 Years (expressed in Euro)


INVESTMENT AIMS

To provide an attractive rate of return,measured in Euro, through market andinstrument selection. This objective will beachieved by investing in high quality fixedincome securities denominated in Euro. The Fund will invest primarily, in order toreduce volatility, in individual securities withmaturity dates having a maximum of five years.


Investment


Marketvalue

% of netassets


specified

952347-1-007 x-cat 8/22/05 17:52 Page 74


Short Maturity Euro Bond Fund


Investment

Investment

United States of AmericaFreddie Mac unsecur sr nts SerINTL 4.625% /2007 10,000,000 10,400,500 1.68MBNA Amer Euro Struc OFF Ser1997-H class A 5.625% /2007 (FRF) 46,000,000 7,508,751 1.21Bank of America sr unsecur unsubord 3.625% /2008 7,000,000 7,233,975 1.17General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 6,070,000 6,404,305 1.04Citigroup unsecur unsubord SerINTL 4.625% /2007 5,600,000 5,901,336 0.95Household Finance unsecur unsubord 5.25% 23/11/2005 3,875,000 3,919,865 0.63Procter & Gamble unsecur sr unsubord 5.75% 26/09/2005 3,800,000 3,829,754 0.62Citibank Credit Card Master Trust I sr unsubord class A Ser97-5 5.75% /2007 (DEM) 7,000,000 3,824,673 0.62JP Morgan Chase & Co nts SerEMTN 3.875% /2008 3,600,000 3,767,328 0.61Lehman Brothers Holdings sr nts SerEMTN 5.625% /2006 3,525,000 3,590,379 0.58General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 3,200,000 3,137,136 0.51New York Life Funding secur sr nts SerEMTN 5.125% /2006 2,950,000 3,016,080 0.49Countrywide Home Loans co gtd SerEMTN 2.75% /2006 2,150,000 2,159,149 0.35Ford Motor Credit sr nts SerEMTN 6.75% /2008 2,000,000 2,053,900 0.33Goldman Sachs Group nts SerEMTN 2.545% /2006 (1) 2,000,000 2,009,582 0.33Ford Motor Credit sr nts SerEMTN 5.75% /2009 2,000,000 1,967,400 0.32Goldman Sachs Group sr nts 4.125% /2008 1,500,000 1,566,375 0.25


United KingdomJohn Hancock Global Fund secur SerEMTN 3.875% /2006 6,750,000 6,814,125 1.11TI Group unsecur unsubord 6.375% 18/07/2005 5,469,000 5,476,684 0.89British Telecom step cpn 6.375% to 15/02/2006 5,000,000 5,125,025 0.83Royal Bank of Scotland unsecur subord nts SerEMTN 4.875% /2009 3,500,000 3,781,645 0.61ASIF III unsecur sr unsubord SerEMTN 5.125% /2007 3,500,000 3,675,700 0.59OTE unsecur unsubord co gtd SerRegS 6.125% /2007 3,150,000 3,333,803 0.54Vodafone Group unsecur nts SerEMTN 5.75% /2006 3,130,000 3,272,885 0.53NGG Finance sr unsecur unsubord co gtd 5.25% /2006 2,900,000 2,995,120 0.48Nationwide Building Society nts SerEMTN 3.125% /2010 2,150,000 2,186,925 0.35Travelers Insurance Company Institutional Funding sr secur SerEMTN 4.25% /2006 1,500,000 1,525,650 0.25


AustraliaBOS International unsecur unsubord bnk gtd SerEMTN 3.75% /2008 5,000,000 5,216,363 0.84Australia & New Zealand Banking Group sr nts SerEMTN 3.125% /2010 2,000,000 2,040,494 0.33


SwedenSkandinaviska Enskilda Banken subord SerEMTN 5.625% /2012 (1) 3,000,000 3,184,968 0.51SCA Finans unsecur unsubord co gtd SerEMTN 5.375% /2007 1,800,000 1,903,125 0.31Assa Abloy nts SerEMTN 5.125% /2006 369,000 382,671 0.06


ItalySanpaolo IMI sr nts SerEMTN 3.5% /2013 (1) 3,700,000 3,812,943 0.62





Total NAV 618,259,920 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 75


US Bond Fund

Government Bonds

United States of AmericaUS Treasury 4.25% /2013 31,350,000 32,070,070 9.44US Treasury 3.875% /2013 21,925,000 21,918,148 6.45US Treasury 8.125% /2019 12,050,000 16,996,148 5.00US Treasury 6.375% /2027 8,545,000 11,003,023 3.24Federal Home Loan Bank disc nts 0% 20/07/2005 10,000,000 9,977,250 2.94US Treasury Strip cpn 0% /2025 19,750,000 8,326,552 2.45US Treasury 3.125% /2007 7,900,000 7,827,172 2.30US Treasury Notes 4.25% /2013 7,000,000 7,152,031 2.11US Treasury 1.875% /2006 6,000,000 5,947,500 1.75US Treasury 6.125% /2029 4,290,000 5,437,575 1.60US Treasury 3.5% /2006 5,000,000 4,996,094 1.47US Treasury Strip cpn 0% /2027 5,000,000 1,938,560 0.57US Treasury Strip cpn 0% /2025 2,190,000 919,231 0.27US Treasury Bill 0% 14/07/2005 (2) 500,000 495,616 0.15U.S. Treasury 7.625% /2025 250,000 358,086 0.11US Treasury Bill 0% 14/07/2005 (2) 20,000 19,739 0.01


MexicoUnited Mexican States nts SerMTNA 8% /2022 1,185,000 1,442,027 0.43United Mexican States nts 8.375% /2011 200,000 232,580 0.07United Mexican States SerMTN 8.3% /2031 175,000 216,361 0.06




United States of AmericaFreddie Mac Gold Pool 5.5% /2016 11,050,000 11,336,609 3.35FNMA TBA 4.5% /2019 7,700,000 7,654,281 2.26FNMA TBA 6% /2034 6,550,000 6,711,703 1.99FNMA TBA 5% 4,100,000 4,135,875 1.23FNMA Pool 545819 6.5% /2032 3,724,875 3,862,411 1.14American Express Credit Account Master Trust 2003-3 A 3.33% /2010 (1) 3,300,000 3,309,698 0.97FNMA TBA 5% /2019 3,000,000 3,030,000 0.89MBNA Credit Card Master Note Trust 2003-A3 A3 3.34 /2010 (1) 2,675,000 2,683,564 0.79USAA Auto Owner Trust 2004-2 A4 3.58% /2011 2,500,000 2,478,998 0.73Nissan Auto Receivables Owner Trust 2005-B A3 3.99% /2009 2,400,000 2,398,500 0.71Structured Asset Securities 2005-WF2 A1 3.394% /2035 (1) 2,396,843 2,396,306 0.71Harley-Davidson Motorcycle Trust 2005-1 A2 3.76% /2012 2,300,000 2,286,534 0.67Saxon Asset Securities Trust 2005-2 A2A 3.404% /2035 (1) 2,266,507 2,265,090 0.67USAA Auto Owner Trust 2004-3 A3 3.16% /2009 2,250,000 2,227,660 0.66Merrill Auto Trust Securitization 2005-1 A3 4.1% /2009 2,225,000 2,227,086 0.66Capital Auto Receivables Asset Trust 2005-1 A4 4.05% /2009 2,200,000 2,204,050 0.65Park Place Securities 2005-WHQ3 A2A 3.39% /2035 (1) 2,103,034 2,103,443 0.62Caterpillar Financial Asset Trust 2005-A A3 3.9% /2009 1,925,000 1,923,171 0.57FNMA Pool 616766 7% /2031 1,782,280 1,880,037 0.55

INVESTMENT AIMS

To provide an attractive rate of return,measured in US Dollars, through investmentprimarily in US Dollar denominated fixedincome securities issued by governments,agencies and corporations either in the USdomestic markets or in the Euromarkets. The Fund may also invest on an ancillary basisin foreign fixed income securities, includingemerging markets fixed income securities.


Investment


I

A

B

3

2

1

0

2.66% 2.51% 1.99% 2.51%

I A B





Lehman Brothers Aggregate Index (expressed in US dollars)

S

IX

AX

3

2

1

0

2.65% 0.31% 0.27% 2.51%

S IX AX

Fund (net of expenses) Class S shares



Lehman Brothers Aggregate Index (expressed in US dollars)

Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 76


US Bond Fund


Investment

Investment

Mortgage and Asset Backed Securities (continued)

United States of America (continued)Honda Auto Receivables Owner Trust 2005-3 A3 3.87% /2009 1,850,000 1,843,641 0.54Structured Asset Investment Loan Trust 2005-5 A6 3.404% /2035 (1) 1,783,827 1,784,487 0.53FNMA Pool 555798 6.5% /2033 1,657,280 1,718,473 0.51Daimler Chrysler Auto Trust 2005-B A3 4.04% /2009 1,700,000 1,702,883 0.50Asset Backed Funding Certificates 2005-WF1 A2A 3.39% /2035 (1) 1,675,830 1,677,004 0.49National City Auto Receivables Trust 2004-A A4 2.88% /2011 1,700,000 1,660,542 0.49MBNA Master Credit Card Trust 2000-E A 7.8% /2012 1,430,000 1,651,203 0.49Harley Davidson Motorcycle Trust 2005-2 A2 4.07% /2012 1,575,000 1,576,339 0.46Chase Credit Card Master Trust 2001-4 A 5.5% /2008 1,490,000 1,515,609 0.45Specialty Underwritting & Residential Finance 2005-BC2 A2A 3.414% /2035 (1) 1,501,601 1,502,521 0.44USAA Auto Owner Trust 2005-1 A33.9% /2009 1,500,000 1,498,560 0.44Master Asset Backed Securities Trust 2005-OPT1 A3 3.40% /2035 (1) 1,403,098 1,404,083 0.41Ford Credit Auto Owner Trust 2005-B A3 4.17% /2009 1,375,000 1,379,092 0.41Volkswagen Auto Lease Trust 2005-A A3 3.82% /2008 1,350,000 1,347,891 0.40GSAMP Trust 2005-AHL A1 3.40 % /2035 (1) 1,266,248 1,267,139 0.37Wachovia Auto Owner Trust 2005-A A3 4.06% /2009 1,250,000 1,252,511 0.37CNH Equipment Trust 2005-A A3 4.02% /2009 1,225,000 1,225,831 0.36Honda Auto Receivables Owner Trust 2005-2 A3 3.93% /2009 1,175,000 1,174,724 0.35Freddie Mac Gold Pool B18584 5% /2020 1,053,193 1,064,722 0.31FNMA Pool 254487 7.5% /2032 954,424 1,020,176 0.30Wachovia Auto Owner Trust 2004-B A3 2.91% /2009 1,000,000 987,640 0.29Capital Auto Receivables Asset Trust 2004-2 A2 3.35% /2008 975,000 966,450 0.28Freddie Mac Gold Pool B18409 5% /2020 915,670 925,694 0.27World Omni Auto Receivables Trust 2004-A A3 3.29% /2008 925,000 917,900 0.27Freddie Mac Gold Pool C43084 7.5% /2030 854,339 915,385 0.27CIT Equipment Collateral 2004-EF1 A3 3.5% /2008 925,000 914,277 0.27FNMA Pool 555254 6.5% /2033 751,765 779,523 0.23FNMA Pool 632578 6.5% /2032 690,380 715,871 0.21MBNA Master Credit Card Trust 2000-I A 6.9% /2008 700,000 703,515 0.21FNMA Pool 651342 6.5% /2032 675,395 699,893 0.21FNMA Pool 535148 8% /2030 623,506 670,784 0.20FNMA Pool 254311 6.5% /2032 622,994 645,591 0.19FNMA Pool 685448 6.5% /2033 594,922 616,100 0.18Fannie Mae FNR 2003-33 IA unsecur 6.5% /2033 3,683,119 615,386 0.18FNMA Pool 490758 6.5% /2029 571,417 593,207 0.17Freddie Mac Gold Pool B18161 5% /2020 586,552 592,973 0.17Freddie Mac Gold Pool B16509 5% /2019 547,040 552,902 0.16Freddie Mac Gold Pool B13429 5% /2019 537,091 542,846 0.16Citibank Credit Card Issuance Trust 2000-C1 C1 7.45% /2007 535,000 539,495 0.16Freddie Mac Gold Pool C39936 7.5% /2030 496,163 532,749 0.16Freddie Mac Gold Pool B18110 5% /2020 510,041 515,507 0.15FNMA MBS 30yr 7.5% 450,000 480,797 0.14


United States of America (continued)FNMA Pool 622546 6.5% /2031 427,140 445,096 0.13TXU Electric Delivery Transition Bond 2004-1 A2 4.81% /2014 425,000 430,704 0.13FNMA Pool 651475 6.5% /2032 397,305 411,716 0.12Freddie Mac Gold Pool C59760 7.5% /2027 364,412 391,283 0.12FNMA Pool 611283 6.5% /2031 372,825 386,591 0.11Fannie Mae FNR 2003-39 IO 6% /2033 (1) 2,159,262 352,707 0.10FNMA Pool 254516 6.5% /2032 321,881 333,556 0.10FNMA Pool 253585 8% /2031 304,963 327,923 0.10Freddie Mac Gold Pool C01086 7.5% /2030 300,559 321,847 0.09Freddie Mac FHR 2557 IW 6% /2032 2,806,100 319,155 0.09Fannie Mae FNR 2003-25 IK 7% /2033 1,715,553 317,340 0.09FNMA Pool 648063 7% /2032 296,367 312,637 0.09FNMA Pool 545762 6.5% /2032 298,347 309,168 0.09FNMA Pool 648736 6.5% /2032 284,452 294,769 0.09FNMA Pool 535127 8% /2030 273,125 293,835 0.09Freddie Mac Gold Pool C43014 7.5% /2030 272,247 292,273 0.09Freddie Mac Gold Pool G01031 7.5% /2029 268,413 288,205 0.08Freddie Mac Gold Pool A10594 7.5% /2027 256,257 274,861 0.08Freddie Mac Gold Pool D95307 7.5% /2021 254,025 272,397 0.08FNMA Pool 253894 6.5% /2031 254,217 263,603 0.08FNMA Pool 659833 6.5% /2032 253,836 263,043 0.08Burlington Northern and Santa Fe Railway pass thru certs 4.575% /2021 255,000 256,797 0.08FNMA Pool 655062 7.5% /2032 236,740 253,050 0.07FNMA Pool 672440 8% /2032 232,333 249,818 0.07Freddie Mac Gold Pool C77120 6.5% /2033 235,865 244,363 0.07FNMA Pool 535190 8% /2030 224,789 241,834 0.07FNMA Pool 253813 8% /2031 207,156 222,753 0.07FNMA Pool 535996 7.5% /2031 208,273 222,627 0.07FNMA Pool 570642 8% /2031 205,227 220,679 0.06FNMA Pool 602073 7.5% /2031 196,133 209,644 0.06FNMA Pool 566789 7.5% /2031 195,774 209,266 0.06FNMA Pool 66127 8% /2032 190,941 205,311 0.06FNMA Pool 323991 7.5% /2029 190,693 203,942 0.06FNMA Pool 625393 6.5% /2032 195,694 202,792 0.06FNMA Pool 637851 6.5% 2032 190,253 197,154 0.06Freddie Mac Gold Pool D78850 7.5% /2027 181,225 194,382 0.06CVS pass thru certs Ser144A priv plmt 6.204% /2025 172,944 190,757 0.06Fannie Mae Strip 317 IO 8% /2031 879,220 176,155 0.05Fannie Mae FNS 313-2 6.5% /2031 981,353 172,819 0.05Freddie Mac Gold Pool C41688 7.5% /2030 159,443 170,736 0.05Freddie Mac Gold Pool C57125 7.5% /2031 157,381 168,528 0.05Fannie Mae FNR 2003-49 IO 6.5% /2033 929,202 165,871 0.05FNMA Pool 729408 6.5% /2033 155,562 161,099 0.05Freddie Mac Gold Pool C47090 7.5% /2031 144,385 155,006 0.05Freddie Mac Gold Pool C39195 7.5% /2030 142,700 152,807 0.04Fannie Mae FNR 2003-35 IU 6% /2033 897,540 146,949 0.04FNMA Pool 590049 7% /2031 138,792 146,405 0.04Freddie Mac Gold Pool C44335 7.5% /2030 132,886 142,297 0.04FNMA Pool 628751 7.5% /2032 124,773 133,368 0.04FNMA Pool 592229 7.5% /2031 123,664 132,183 0.04Freddie Mac Gold Pool C68730 7.5% /2026 119,655 128,457 0.04FNMA Pool 655588 8% /2032 114,679 123,309 0.04Fannie Mae FNR 2001-4 SA 4.31% /2031 (1) 1,361,098 122,413 0.04Fannie Mae FNR 2003-82 IA 6% /2032 1,142,557 118,025 0.03FNMA Pool 254613 7% /2032 109,111 115,101 0.03FNMA Pool 573254 7.5% /2031 107,472 114,879 0.03Freddie Mac Gold Pool C39840 7.5% /2030 106,646 114,476 0.03Freddie Mac Gold Pool G01303 7.5% /2031 106,543 114,086 0.03Freddie Mac Gold Pool C39839 7.5% /2030 101,239 108,686 0.03Freddie Mac Gold Pool C41463 7.5% /2030 101,448 108,633 0.03FNMA Pool 253114 8% /2030 94,924 102,071 0.03Freddie Mac Gold Pool C90299 7.5% /2019 94,425 101,233 0.03FNMA Pool 596192 7.5% /2031 90,725 96,975 0.03FNMA Pool 545395 8% /2031 89,360 96,088 0.03FNMA Pool 521221 7.5% /2029 88,344 94,482 0.03FNMA Pool 254240 7% /2032 88,814 93,689 0.03FNMA Pool 190308 7.5% /2030 87,557 93,591 0.03FNMA Pool 630529 7.5% /2032 87,546 93,577 0.03FNMA Pool 253794 6.5% /2031 89,337 92,636 0.03

Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 77


US Bond Fund


Investment

Investment


United States of America (continued)Freddie Mac Gold Pool C47063 7.5% /2031 85,370 91,417 0.03Freddie Mac Gold Pool C36249 7.5% /2030 85,370 91,416 0.03Freddie Mac Gold Pool C66709 7.5% /2032 83,118 89,004 0.03FNMA Pool 557184 8% /2030 82,110 88,292 0.03FNMA Pool 541903 7.5% /2030 81,949 87,597 0.03FNMA Pool 535898 8% /2031 80,060 86,088 0.03FNMA Pool 254383 7.5% /2032 80,289 85,820 0.03FNMA Pool 190292 7.5% /2027 78,333 83,954 0.02FNMA Pool 254448 6.5% /2032 80,204 83,113 0.02Freddie Mac Gold Pool C80401 7.5% /2026 76,352 81,982 0.02Freddie Mac Gold Pool G00876 6.5% /2028 75,921 78,900 0.02Freddie Mac FHR 2500 SD 4.78% /2032 (1) 747,880 76,912 0.02FNMA Pool 710944 6.5% /2033 72,506 75,087 0.02FNMA Pool 535204 8% /2030 65,952 70,917 0.02FNMA Pool 485674 6.5% 2029 67,173 69,734 0.02Government National Mortgage Association GNR 1999-27 SE 5.36% /2029 (1) 642,546 69,235 0.02Freddie Mac Gold Pool C45610 7.5% /2030 64,314 68,869 0.02FNMA Pool 571075 7% /2031 64,667 68,214 0.02Freddie Mac Gold Pool C01214 7.5% /2031 61,280 65,619 0.02FNMA Pool 653071 6.5% /2032 62,541 64,809 0.02FNMA Pool 704153 6.5% /2033 60,311 62,458 0.02FNMA Pool 531578 7.5% /2030 58,142 62,149 0.02FNMA Pool 671440 8% /2032 57,219 61,527 0.02FNMA Pool 251626 7% /2018 57,482 60,882 0.02Freddie Mac Gold Pool G01167 7.5% /2031 56,753 60,772 0.02Freddie Mac Gold Pool C53765 7.5% /2031 55,568 59,502 0.02FNMA Pool 545003 8% /2031 54,837 58,965 0.02FNMA Pool 545078 7.5% /2031 52,341 55,949 0.02FNMA Pool 591854 7.5% /2031 52,240 55,839 0.02Government National Mortgage Association GNR 2001-22 SK 4.91% /2031 (1) 548,448 54,622 0.02FNMA Pool 615166 7.5% /2031 50,126 53,581 0.02FNMA Pool 545562 7.5% /2032 49,375 52,778 0.02FNMA Pool 583355 8% /2031 49,021 52,712 0.02FNMA Pool 524488 7.5% /2030 48,956 52,330 0.02FNMA Pool 535757 8% /2031 46,830 50,381 0.01FNMA Pool 253643 7.5% /2031 45,693 48,842 0.01FNMA Pool 415853 7.5% /2028 45,119 48,356 0.01FNMA Pool 527244 6.5% /2029 46,544 48,321 0.01FNMA Pool 529548 7.5% /2030 42,173 45,079 0.01FNMA Pool 532814 7.5% /2030 40,841 43,678 0.01FNMA Pool 644789 7% /2032 41,143 43,401 0.01FNMA Pool 253481 8% /2030 40,341 43,378 0.01FNMA Pool 535481 8% /2030 40,069 43,086 0.01FNMA Pool 568165 7.5% /2031 39,624 42,355 0.01Freddie Mac Strip 215 IO 8% /2031 208,511 42,123 0.01FNMA Pool 545620 7.5% /2032 39,040 41,730 0.01FNMA Pool 514574 7.5% /2030 38,672 41,359 0.01FNMA Pool 630738 7% /2032 38,874 41,008 0.01FNMA Pool 554693 8% /2030 38,061 40,926 0.01Fannie Mae Strip 306 IO 8% /2030 201,789 40,569 0.01FNMA Pool 636445 7% /2032 38,245 40,344 0.01FNMA Pool 252806 7.5% /2029 36,731 39,283 0.01FNMA Pool 251898 6.5% /2028 37,626 39,060 0.01FNMA Pool 252807 8% /2029 35,669 38,374 0.01FNMA Pool 526645 7.5% /2029 35,560 38,031 0.01FNMA Pool 529097 8% /2030 35,051 37,690 0.01Freddie Mac Gold Pool C47928 7.5% /2031 35,045 37,528 0.01FNMA Pool 558690 7.5% /2030 35,033 37,447 0.01FNMA Pool 713672 6.5% /2032 35,533 36,822 0.01FNMA Pool 541247 8% /2030 34,239 36,817 0.01Fannie Mae Strip 1997-53 PI 8% /2027 176,290 36,280 0.01FNMA Pool 580991 7.5% /2031 33,683 36,004 0.01FNMA Pool 654424 7% /2032 34,035 35,904 0.01


United States of America (continued)FNMA Pool 253437 8% /2030 31,848 34,246 0.01FNMA Pool 559146 7% /2030 31,241 32,956 0.01FNMA Pool 545551 8% /2032 30,146 32,415 0.01FNMA Pool 520075 7% /2029 30,668 32,369 0.01FNMA Pool 568354 8% /2031 29,872 32,173 0.01FNMA Pool 637716 7.5% /2032 28,256 30,203 0.01FNMA Pool 550017 7.5% /2030 27,392 29,280 0.01Fannie Mae Strip 2000-32 SM 5.29% /2030 (1) 320,909 28,649 0.01FNMA Pool 576022 8% /2029 26,450 28,506 0.01Freddie Mac Gold Pool C39781 8% /2030 26,057 28,054 0.01FNMA Strip 7% /2032 152,115 27,947 0.01FNMA Pool 535533 8% /2030 25,445 27,361 0.01FNMA Pool 601971 7.5% /2031 25,548 27,308 0.01FNMA Pool 601136 8% /2031 25,351 27,260 0.01FNMA Pool 339552 7% /2026 25,491 26,975 0.01FNMA Pool 559287 7.5% /2030 24,956 26,676 0.01Fannie Mae FNR 2002-50 SC 4.79% /2029 (1) 595,489 26,210 0.01Freddie Mac Gold Pool C36886 8% /2030 23,796 25,620 0.01Fannie Mae Strip 2000-46 SA 6.6175% /2030 (1) 275,359 25,309 0.01FNMA Pool 616898 7.5% /2031 23,530 25,151 0.01FNMA Pool 591183 8% /2031 23,093 24,832 0.01FNMA Pool 579400 7% /2031 23,494 24,783 0.01FNMA Pool 538501 8% /2030 22,336 24,018 0.01FNMA Pool 624309 7.5% /2032 22,350 23,890 0.01Fannie Mae Strip 2000-34 S 5.24% /2030 (1) 253,024 23,089 0.01FNMA Pool 594355 7.5% /2031 20,588 22,006 0.01FNMA Pool 313687 7% /2027 20,772 21,951 0.01FNMA Pool 537867 8% /2030 20,226 21,749 0.01FNMA Pool 567146 7% /2031 19,127 20,178 0.01FNMA Pool 646944 7% /2032 18,921 19,960 0.01FNMA Pool 252589 6.5% /2029 19,112 19,841 0.01Freddie Mac Gold Pool C01025 8% /2030 17,689 19,045 0.01FNMA Pool 504341 7% /2029 17,974 18,971 0.01Government National Mortgage Association Strip 1999-30 SA IO 4.76% /2029 (1) 279,474 18,908 0.01FNMA Pool 632288 6.5% /2032 17,029 17,657 0.01Government National Mortgage Association GNR 2001-46 SA 4.34% /2031 (1) 276,092 17,108 0.01FNMA Pool 253516 8% /2030 15,607 16,782 0.00Freddie Mac Gold Pool C41920 8% /2030 15,509 16,698 0.00FNMA Pool 253346 7.5% /2030 15,501 16,569 0.00Freddie Mac Gold Pool C42445 8% /2030 15,059 16,214 0.00FNMA Pool 711986 6.5% /2033 15,061 15,597 0.00FNMA Pool 591189 6.5% /2031 14,918 15,469 0.00Freddie Mac Gold Pool G01135 8% /2030 14,351 15,451 0.00FNMA Pool 496029 6.5% /2029 14,686 15,247 0.00FNMA Pool 568963 7.5% /2031 13,400 14,324 0.00FNMA Pool 654099 6.5% /2032 13,239 13,720 0.00FNMA Pool 667021 6.5% /2032 13,052 13,525 0.00FNMA Pool 563584 8% /2030 12,249 13,172 0.00FNMA Pool 254677 6.5% /2033 12,619 13,077 0.00Fannie Mae Strip 307 IO 8% /2030 72,590 12,438 0.00FNMA Pool 675952 6.5% /2032 11,597 12,031 0.00FNMA Pool 522601 8% /2029 11,087 11,928 0.00FNMA Pool 702022 6.5% /2033 11,498 11,907 0.00Freddie Mac Gold Pool C01221 8% /2031 10,940 11,778 0.00FNMA Pool 535198 8% /2030 10,911 11,738 0.00FNMA Pool 343010 7.5% /2026 10,830 11,606 0.00FNMA Pool 589499 6.5% /2031 10,982 11,388 0.00Fannie Mae Strip 296 2 8% /2024 56,915 10,844 0.00FNMA Pool 584953 7.5% /2031 9,842 10,520 0.00FNMA Pool 621265 8% /2032 9,773 10,509 0.00FNMA Pool 571788 7.5% /2031 8,060 8,620 0.00FNMA Pool 571106 7.5% /2031 7,762 8,297 0.00FNMA Pool 541938 8% /2030 7,417 7,976 0.00FNMA Pool 637459 7.5% /2032 6,882 7,356 0.00Freddie Mac Strip 2234 SC IO 5.33% /2029 (1) 138,751 7,228 0.00FNMA Pool 548831 8% /2030 6,585 7,081 0.00FNMA Pool 581649 8% /2031 6,003 6,455 0.00FNMA Pool 254572 8% /2032 5,785 6,220 0.00FNMA Pool 190317 8% /2031 5,577 5,997 0.00

Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 78

US Bond Fund



Investment

Investment


United States of America (continued)FNMA Pool 563934 8% /2031 5,532 5,949 0.00FNMA Pool 532807 7.5% /2030 5,326 5,696 0.00FNMA Pool 259113 7.5% /2030 5,221 5,581 0.00FNMA Pool 566917 7.5% /2031 4,813 5,145 0.00FNMA Pool 494724 6.5% /2029 4,819 5,003 0.00FNMA Pool 547424 8% /2030 3,222 3,465 0.00FNMA Pool 561316 6.5% /2030 2,056 2,133 0.00FNMA Pool 600298 7.5% /2031 1,585 1,694 0.00FNMA Pool 634589 8% /2031 1,564 1,682 0.00FNMA Pool 515611 7.5% /2029 1,508 1,613 0.00FNMA Pool 511789 7.5% /2030 1,228 1,312 0.00FNMA Pool 592703 8% /2031 1,208 1,299 0.00Fannie Mae Strip 2000-31 SB IO 4.69% /2027 (1) 79,673 1,230 0.00FNMA Pool 549123 7.5% /2030 587 627 0.00



Corporate Bonds

United States of AmericaAIG SunAmerica Global Financing VI sr nts secur Ser144A priv plmt 6.3% /2011 1,385,000 1,510,188 0.44Fleetboston Financial nts 7.25% /2005 1,005,000 1,012,388 0.29World Financial Properties pass thru certs Ser144A priv plmt 6.95% /2013 929,458 1,006,535 0.29Marsh & McLennan Cos nts 5.375% /2014 970,000 965,768 0.28J.P. Morgan Chase & Co unsecur subord nts 6% /2009 900,000 948,889 0.28Aetna ‘New’ sr nts unsecur 7.875% /2011 820,000 948,073 0.28America West Airlines pass thru certs Ser01-1 7.1% /2021 861,261 909,784 0.27Farmers Exchange Capital nts Ser144A priv plmt 7.05% /2028 835,000 900,326 0.26Marriott International unsecur nts SerE 7% /2008 845,000 898,863 0.26General Electric Capital nts SerMTNA 6.75% /2032 725,000 892,563 0.26Citigroup unsecur subord nts 5.625% /2012 800,000 854,022 0.25M&I Marshall & Ilsley Bank nts SerBKNT 3.8% /2008 835,000 829,509 0.24Albertson’s unsecur debentures 7.45% /2029 715,000 803,725 0.24Sealed Air nts Ser144A priv plmt 5.625% /2013 720,000 737,957 0.22Axa Financial unsecur sr nts 6.5% /2008 670,000 709,722 0.21MBNA nts 3.64% /2008 (1) 695,000 697,592 0.21Countrywide Home Loans nts SerMTNL 3.25% /2008 700,000 680,538 0.20Ford Motor Credit nts 7.25% /2011 705,000 673,298 0.20Caterpillar Financial Services nts SerMTNF 3.35% /2007 (1) 665,000 666,161 0.20MBNA nts 6.125% /2013 620,000 663,819 0.20Wachovia nts 4.95% /2006 640,000 649,074 0.19St Paul Travelers sr nts 5.01% /2007 630,000 638,292 0.19Hyatt Equities nts Ser144A priv plmt 6.875% /2007 595,000 614,094 0.18Miller Brewing nts Ser144A priv plmt 4.25% /2008 570,000 567,179 0.17Citicorp subord nts 6.75% 15/08/2005 565,000 567,043 0.17Washington Mutual subord nts 8.25% /2010 490,000 564,466 0.17Clorox sr nts 3.525% /2007 (1) 560,000 561,145 0.17Consolidated Natural Gas Company sr nts unsecur unsubord SerC 6.25% /2011 500,000 547,775 0.16


United States of America (continued)TCI Communications unsecur sr debentures 7.875% /2026 440,000 547,189 0.16SLM nts SerMTNA 5% /2013 525,000 538,797 0.16Pacific Gas & Electric 6.05% /2034 480,000 528,096 0.16HSBC Finance nts 6.75% /2011 475,000 526,876 0.16Arizona Public Service nts 5.8% /2014 480,000 514,917 0.15Goldman Sachs Group unsecur sr nts 6.6% /2012 460,000 509,973 0.15World Financial Properties pass thru certs Ser144A priv plmt 6.91% /2013 465,377 503,978 0.15Carolina Power & Light 1st mortgage 5.125% /2013 485,000 500,049 0.15Cooper Industries unsecur co gtd 5.25% /2007 475,000 484,011 0.14International Lease Finance unsecur nts 3.75% /2007 490,000 483,979 0.14Comcast sr unsecur co gtd 6.5% /2015 430,000 477,545 0.14FPL Group Capital nts 3.25% /2006 475,000 473,488 0.14News America Holdings co gtd sr debentures 7.75% /2024 390,000 465,588 0.14Residential Capital nts Ser144A priv plmt 6.375% /2010 460,000 462,338 0.14Wellpoint Health Networks sr unsecur nts 6.375% /2006 450,000 460,050 0.14EOP Operating LP unsecur sr nts 6.763% /2007 435,000 455,743 0.13Southwest Airlines pass thru certs 5.496% /2006 445,000 452,833 0.13COX Communications nts 4.625% /2010 450,000 448,288 0.13Time Warner unsecur co gtd 7.7% /2032 350,000 438,629 0.13Federated Department Stores unsecur sr nts 6.625% /2008 405,000 432,983 0.13Household Finance unsecur sr unsubord 5.875% /2009 410,000 430,673 0.13American General Finance nts SerMTNH 4.625% /2010 425,000 427,885 0.13Public Service Electric & Gas SerMTNB 5% /2013 410,000 422,541 0.12Altria Group nts 7% /2013 370,000 413,711 0.12Weyerhaeuser unsecur unsubord nts 6% /2006 405,000 412,170 0.12Kraft Foods nts 5.625% /2011 375,000 396,675 0.12Safeway sr unsecur debentures 7.25% /2031 335,000 385,574 0.11Union Pacific nts 3.625% /2010 390,000 374,684 0.11AT&T Wireless Services sr nts unsecur 8.75% /2031 265,000 367,737 0.11SLM nts 4% /2010 370,000 365,452 0.11CIT Group sr nts 2.875% /2006 365,000 360,228 0.11Northrop Grumman nts 4.079% /2006 355,000 355,228 0.10Raytheon sr unsecur nts 8.3% /2010 305,000 353,548 0.10FedEx nts 2.65% /2007 355,000 345,909 0.10Altria Group unsecur debentures 7.75% /2027 290,000 345,087 0.10Detroit Edison Ser144A priv plmt 4.8% /2015 340,000 343,300 0.10Norfolk Southern nts 7.35% /2007 325,000 342,983 0.10Mohawk Industries unsecur nts SerD 7.2% /2012 300,000 342,461 0.10DaimlerChrysler NA co gtd 8.5% /2031 265,000 332,145 0.10Consolidated Natural Gas sr nts 5% /2014 325,000 330,192 0.10Harrah’s Operating Ser144A priv plmt 5.625% /2015 325,000 328,923 0.10Citicorp subord nts SerMTNF 6.375% /2008 305,000 326,072 0.10CC Funding Trust I sr nts 6.9% /2007 310,000 323,366 0.10Exelon unsecur sr nts 6.75% /2011 290,000 320,732 0.09Household Finance unsecur sr unsubord 6.4% /2008 295,000 312,801 0.09Nisource Finance nts 3.85438% /2009 (1) 310,000 311,494 0.09Textron Financial nts 4.125% /2008 310,000 310,058 0.09General Electric Capital sr nts SerMTNA 4.25% /2010 300,000 299,499 0.09Consumers Energy SerH 4.8% /2009 295,000 297,359 0.09Huntington National Bank sr nts SerBKNT 4.375% /2010 295,000 294,978 0.09MBNA America Bank subord nts 7.125% /2012 250,000 287,536 0.08

Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 79


US Bond Fund


Investment

Investment


United States of America (continued)General Electric Capital nts SerMTNA 5.875% /2012 260,000 280,707 0.08ICI Wilmington co gtd 4.375% /2008 280,000 277,824 0.08Entergy Gulf States 3.73% /2009 (1) 270,000 270,901 0.08Citigroup nts 5.75% /2006 265,000 269,360 0.08Union Pacific nts 6.625% /2008 250,000 263,923 0.08Citigroup nts sr unsecur 6% /2012 240,000 261,588 0.08Goldman Sachs Group nts 5.25% /2013 250,000 257,442 0.08Bank of New York nts SerBKNT 3.8% /2008 250,000 248,193 0.07Household Finance nts 6.375% /2011 225,000 246,492 0.07Sempra Energy sr nts 4.621% /2007 220,000 221,375 0.07South Carolina Electric & Gas 5.3% /2033 210,000 217,543 0.06Prudential Holdings SerFSA B priv plmt 7.245% /2023 170,000 210,199 0.06Entergy Gulf States 3.6% /2008 210,000 205,871 0.06Anthem unsecur unsubord 6.8% /2012 180,000 204,465 0.06Bank of New York unsecur sr nts 5.2% /2007 200,000 204,015 0.06Sprint Capital unsecur co gtd 8.75% /2032 145,000 200,539 0.06General Motors Acceptance nts 4.5% /2006 200,000 198,158 0.06Cincinnati Gas & Electric nts unsecur 5.7% /2012 185,000 197,393 0.06DaimlerChrysler NA Holding co gtd 7.2% /2009 175,000 190,303 0.06Household Finance nts 4.125% /2008 190,000 189,144 0.06Detroit Edison sr 6.125% /2010 150,000 161,987 0.05Arizona Public Service sr nts secur 6.75% /2006 145,000 149,943 0.04Texas Eastern Transmission unsecur sr nts 7% /2032 125,000 149,550 0.04Ford Motor unsecur nts 7.45% /2031 180,000 149,409 0.04Washington Mutual Bank subord nts 5.5% /2013 135,000 141,173 0.04CIT Group unsecur sr nts 7.375% /2007 130,000 137,111 0.04AOL Time Warner 7.625% /2031 95,000 117,927 0.03Panhandle Eastern Pipe Line sr nts SerB 2.75% /2007 110,000 107,168 0.03Sovereign Bank deposit nts SerCD 4% /2008 100,000 98,989 0.03Caterpillar Financial Services nts SerMTNF 3.625% /2007 95,000 94,026 0.03Hartford Financial Services Group unsecur sr nts 2.375% /2006 95,000 93,609 0.03Wisconsin Electric Power nts 3.5% /2007 90,000 88,742 0.03DaimlerChrysler NA Holding co gtd 7.3% /2012 70,000 78,164 0.02


MexicoPemex Project Funding Master Trust unsecur co gtd 8.625% /2022 975,000 1,189,500 0.35Pemex Project Funding Master Trust unsecur co gtd 9.125% /2010 550,000 645,631 0.19Pemex Project Funding Master Trust unsecur co gtd 7.375% /2014 150,000 167,450 0.05


United KingdomSystems 2001 Asset Trust pass thru certs Ser144A priv plmt 6.664% /2013 749,301 815,760 0.24Nationwide Building Society nts Ser144A priv plmt 4.25% /2010 690,000 688,130 0.20WPP Finance UK co gtd 5.875% /2014 350,000 369,662 0.11



AustraliaMantis Reef nts Ser144A priv plmt 4.692% /2008 785,000 786,867 0.23FBG Finance nts Ser144A priv plmt 5.125% /2015 505,000 506,559 0.15


FranceFrance Telecom unsecur nts 8.25% /2031 545,000 753,673 0.22


Hong KongHutchison Whampoa International co gtd nts Ser144A priv plmt 6.5% /2013 425,000 460,735 0.14Hutchison Whampoa International sr nts Ser144A priv plmt 5.45% /2010 245,000 252,425 0.07


NetherlandsDeutsche Telekom International Finance unsecur unsubord co gtd 8.75% /2030 475,000 643,692 0.19


QatarRas Laffan Liquified Natural Gas secur Ser144A priv plmt 8.294% /2014 400,000 477,213 0.14

Total for Qatar 0.14

BermudaTwo-Rock Pass Through Trust pass thru certs 4.19% (1) 410,000 406,950 0.12


ItalyTelecom Italia Capital co gtd 4% /2008 390,000 384,801 0.11


LuxembourgTelecom Italia Capital co gtd Ser144A priv plmt 4% /2010 365,000 355,368 0.10


CanadaBrascan nts unsecur 7.125% /2012 300,000 337,323 0.10


AustriaSappi Papier Holding co gtd Ser144A priv plmt 6.75% /2012 305,000 325,588 0.10


South KoreaLG Electronics Ser144A priv plmt 5% /2010 280,000 279,410 0.08



Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 80

US Bond Fund


Investment

Government Agency Bonds

United States of AmericaFreddie Mac disc nts unsecur 0% 1/7/2005 18,500,000 18,414,818 5.42Fannie Mae unsecur nts 4.25% /2009 9,440,000 9,530,724 2.81Freddie Mac unsecur nts 5.125% /2013 3,550,000 3,566,064 1.05


Total for Government Agency Bonds 9.28


Total NAV 339,621,059 100.00

(1) Variable coupon rates are those quoted as of 30 June 2005.(2) Security held as collateral against bond futures positions by the broker.


Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 81


US Dollar Short Duration Fund


United States of AmericaFNMA Pool 758575 6.5% /2034 968,723 1,002,918 3.91American Express Credit Account Master Trust 2001-2 A 5.53% /2008 500,000 506,250 1.97Freddie Mac Gold Pool C01441 7.5% /2032 391,921 419,673 1.63FNMA Pool 628075 7.5% /2032 359,075 383,812 1.50Daimler Chrysler Auto Trust 2005-A A3 3.49% /2008 350,000 347,913 1.36TXU Electric Delivery Transition Bond 2004-1 A1 3.52% /2011 350,640 346,867 1.35FNMA Pool 657323 7.5% /2032 307,768 328,970 1.28FNMA Pool 632894 7.5% /2030 296,207 316,620 1.24Honda Auto Receivables Owner Trust 2002-4 A4 2.7% /2008 300,000 297,671 1.16FNMA Pool 252717 7.5% /2029 263,009 281,365 1.10FNMA Pool 794386 4.12% /2034 (1) 273,061 276,387 1.08USAA Auto Owner Trust 2004-3 A3 3.16% /2009 250,000 247,518 0.97Wachovia Auto Owner Trust 2004-B A3 2.91% /2009 250,000 246,910 0.96FNMA Pool 571041 6.5% /2031 234,937 243,612 0.95Fannie Mae FNR 2005-27 NA 5.5% /2024 238,963 242,915 0.95FNMA Pool 607636 7.5% /2031 218,272 233,309 0.91FNMA Pool 652290 6.5% /2032 221,334 229,362 0.90Nissan Auto Receivables Owner Trust 2005-A A3 3.54% /2008 225,000 223,668 0.87Ford Credit Auto Owner Trust 2002-B A4 4.75% /2006 219,434 219,989 0.86FNMA Pool 735540 4.554% /2035 (1) 214,484 215,356 0.84Harley-Davidson Motorcycle Trust 2002-2 A2 3.09% /2010 206,227 204,902 0.80New Century Home Equity Loan Trust 2004-4 A3 3.454% /2035 (1) 202,770 202,914 0.79World Omni Auto Receivables Trust 2004-A A3 3.29% /2008 (1) 200,000 198,465 0.77John Deere Owner Trust 2004-A A3 2.32% /2007 200,000 197,110 0.77Freddie Mac Non Gold Pool 780926 4.352% /2033 (1) 194,775 193,482 0.76Capital Auto Receivables Asset Trust 2002-3 A3 3.58% /2006 186,796 186,901 0.73FNMA Pool 725695 3.673% /2034 (1) 186,330 186,283 0.73Freddie Mac Non Gold Pool 1G0820 4.375% /2035 (1) 175,000 175,739 0.69Merrill Lynch Mortgage Investors WMC1 A2A 3.414% /2035 (1) 166,007 166,153 0.65Freddie Mac Gold Pool C01380 7.5% /2032 155,074 166,055 0.65Wells Fargo Home Equity Trust 2004-2 AI1A 3.484% /2018 (1) 164,074 164,204 0.64Residential Asset Securities 2004-KS9 AI1 3.484% /2021 (1) 162,762 162,897 0.64Freddie Mac Non Gold Pool 781757 3.594% /2034 (1) 161,191 159,052 0.62Merrill Lynch Mortgage Investors 2004-HE2 A2A 3.514% /2035 (1) 158,592 158,712 0.62Nissan Auto Receivables Owner Trust 2002-B A4 4.6% /2007 150,783 151,149 0.59Honda Auto Receivables Owner Trust 2005-1 A3 3.53% /2008 150,000 149,128 0.58Fifth Third Auto Trust 2004-A A3 3.19% /2008 150,000 148,882 0.58FNMA Pool 735559 4.245% /2035 (1) 146,503 147,238 0.57GSAMP Trust 2005-NC1 A1 3.434% /2035 (1) 139,930 140,046 0.55Freddie Mac FHR 2104 TE 5.5% /2012 135,798 136,417 0.53Asset Backed Funding Certificates 2004-OPT5 A2 3.504% /2025 (1) 131,068 131,172 0.51FNMA Pool 826211 4.778% /2035 (1) 125,000 126,000 0.49

0.78% 0.49% 1.45%1.5

1.2

0.9

0.6

0.3

0.0I A

I

A



3 Month US LIBOR Index (expressed in US dollars)


INVESTMENT AIMS

To seek to maximise yield and total returnprimarily by investing in high quality US Dollardenominated fixed income securities issuedby governments, agencies and corporations.The Fund will be managed to maintaina duration of up to 12 months at all times. The Fund may also hold up to 49% of its netassets in cash and cash equivalents.


Investment


Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 82




Investment

Investment


United States of America (continued)FNMA Pool 773300 4.257% /2035 (1) 121,178 121,983 0.48FNMA Pool 779346 3.801% /2034 (1) 120,352 120,089 0.47Freddie Mac Gold Pool C30218 6.5% /2029 113,295 117,597 0.46FNMA Pool 254250 7.5% /2032 102,385 109,438 0.43FNMA Pool 552886 7.5% /2031 102,205 109,249 0.43FNMA MBS 30yr 7.5% 100,000 106,844 0.42Freddie Mac Gold Pool C46909 7.5% /2030 79,731 85,429 0.33Freddie Mac Gold Pool G01479 7.5% /2032 74,269 79,527 0.31Asset Backed Funding Certificates 2004-HE1 A1 3.444% /2022 (1) 77,463 77,515 0.30Freddie Mac Gold Pool C01372 7.5% /2032 68,374 73,216 0.29FNMA Pool 635079 6.5% /2032 66,193 68,594 0.27FNMA Pool 253733 7.5% /2021 60,061 64,236 0.25FNMA Pool 634650 7.5% /2032 53,828 57,536 0.22FNMA Pool 520823 7.5% /2029 43,362 46,375 0.18Freddie Mac Gold Pool C75106 6.5% /2032 39,038 40,444 0.16FNMA Pool 652016 7.5% /2032 35,131 37,551 0.15FNMA Pool 569411 7.5% /2031 10,788 11,531 0.05FNMA Pool 538135 7.5% /2030 9,828 10,510 0.04FNMA Pool 524945 7.5% /2030 3,827 4,091 0.02Freddie Mac Gold Pool C38620 6.5% /2030 3,858 4,002 0.02FNMA Pool 254133 7.5% /2031 3,322 3,551 0.01FNMA Pool 579794 7.5% /2031 1,737 1,858 0.01FNMA Pool 537999 7.5% /2030 389 416 0.00



Corporate Bonds

United States of AmericaCanadian Imperial Bank of Commerce deposit nts SerYCD 3.46 % /2007 (1) 405,000 405,498 1.58Citicorp subord nts SerMTNF 6.375% /2008 330,000 352,800 1.38Golden West Financial unsecur sr nts 5.5% /2006 320,000 325,321 1.27Metropolitan Life Global Funding I nts Ser144A priv plmt 3.375% /2007 270,000 265,768 1.04Target unsecur sr nts 5.95% /2006 255,000 259,512 1.01UnitedHealth Group unsecur sr nts 5.2% /2007 250,000 254,701 0.99Washington Mutual nts 7.5% /2006 215,000 223,109 0.87JP Morgan Chase & Co unsecur subord nts 7% /2009 195,000 214,453 0.84Honeywell International nts 5.125% /2006 205,000 208,269 0.81Prudential Financial sr nts Ser144A priv plmt 6.375% /2006 200,000 204,846 0.80Berkshire Hathaway Finance nts 3.4% /2007 200,000 197,549 0.77Lehman Brothers Holdings nts unsecur 8.25% /2007 180,000 194,048 0.76Wachovia nts 4.95% /2006 190,000 192,694 0.75World Financial Properties pass thru certs Ser144A priv plmt 6.91% /2013 171,095 185,286 0.72US Bancorp sr nts SerMTNN 5.1% /2007 180,000 183,723 0.72KEY Bank subord nts SerBKN1 7.125% /2006 165,000 170,258 0.66Goldman Sachs Group unsecur nts 4.125% /2008 165,000 165,028 0.64Household Finance unsecur sr unsubord 6.4% /2008 155,000 164,353 0.64Public Service Electric & Gas 3.577 % /2006 (1) 160,000 160,029 0.62CIT Group nts 6.5% /2006 155,000 157,446 0.61Verizon/New England sr nts 6.5% /2011 140,000 152,283 0.59Suntrust Bank subord nts SerBKNT 7.25% /2006 135,000 139,856 0.55


United States of America (continued)American Honda Finance nts Ser144A priv plmt 3.85% /2008 140,000 138,333 0.54TIAA Global Markets unsecur sr co gtd Ser144A priv plmt 3.875% /2008 135,000 134,250 0.52FPL Group Capital nts 3.25% /2006 130,000 129,586 0.51John Hancock Financial Services sr nts 5.625% /2008 110,000 115,208 0.45General Electric Capital nts SerMTNA 5% /2007 105,000 106,936 0.42Citicorp subord nts 6.75% 15/08/2005 105,000 105,380 0.41American General Finance nts SerMTNH 4.625% /2010 100,000 100,679 0.39ING Security Life Institutional Funding nts Ser144A priv plmt 2.7% /2007 100,000 97,400 0.38Bank of New York unsecur sr nts 5.2% /2007 95,000 96,907 0.38John Deere Capital unsecur sr nts 4.5% /2007 80,000 80,740 0.32Cooper Industries unsecur co gtd 5.25% /2007 70,000 71,328 0.28Wells Fargo & Co nts 3.45 % /2006 (1) 70,000 70,024 0.27Allstate Financial Global Funding II nts Ser144A priv plmt 2.625% /2006 70,000 68,724 0.27Southwest Airlines pass thru certs 5.496% /2006 55,000 55,968 0.22Allstate Life Global Funding Trusts secur nts Ser04-1 4.5% /2009 55,000 55,539 0.22McDonnell Douglas unsecur nts 6.875% /2006 50,000 51,787 0.20CIT Group sr nts SerMTN 3.44 % 4/11/2005 (1) 50,000 50,033 0.20Countrywide Home Loans nts SerMTNL 3.25% /2008 50,000 48,610 0.19Johnson Controls unsecur sr nts 5% /2006 45,000 45,520 0.18Detroit Edison sr 6.125% /2010 40,000 43,197 0.17Textron Financial nts 4.125% /2008 40,000 40,007 0.16Prudential Funding nts SerMTN priv plmt 6.6% /2008 35,000 37,340 0.15Axa Financial unsecur sr nts 6.5% /2008 35,000 37,075 0.14First Union subord nts 6.875% 15/09/2005 35,000 35,217 0.14TIAA Global Markets nts priv plmt 4.125% /2007 35,000 35,138 0.14Bank of America unsecur sr nts 3.875% /2008 35,000 34,899 0.14General Electric Capital nts SerMTNA5.375% /2007 30,000 30,702 0.12International Lease Finance nts SerMTNQ 4.625% /2008 25,000 25,154 0.10Wisconsin Electric Power nts 3.5% /2007 10,000 9,860 0.04


United KingdomGlaxoSmithKline Capital co gtd 2.375% /2007 200,000 195,028 0.75Nationwide Building Society sr nts Ser144A priv plmt 2.625% /2007 130,000 127,293 0.50Vodafone Group unsecur nts 7.75% /2010 35,000 39,929 0.16


CanadaConoco Funding co gtd 5.45% /2006 230,000 234,374 0.91


AustraliaMantis Reef nts Ser144A priv plmt 4.692% /2008 200,000 200,476 0.78


GermanyKfW - Kreditanstalt fuer Wiederaufbau govt gtd 3.25% /2007 185,000 182,838 0.71


Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 83




Investment


NetherlandsMonumental Global Funding II secur Ser144A priv plmt 6.05% /2006 250,000 252,906 0.99ABN Amro Bank unsecur sr nts 3.31% /2007 (1) 100,000 100,029 0.39



Government Bonds

United States of AmericaFederal Home Loan Bank disc nts 0 % 20/07/2005 1,300,000 1,297,044 5.06US Treasury Bill 0% 14/07/2005 (2) 120,000 118,432 0.47


CanadaProvince of Ontario nts 3.35% /2007 235,000 232,532 0.91Province of Quebec unsecur debentures SerPJ 6.125% /2011 180,000 196,559 0.77



Government Agency Bonds

United States of AmericaFederal Home Loan Bank disc nts 0% /13/07/2005 1,200,000 1,198,640 4.68Freddie Mac disc nts unsecur 0% /2005 700,000 696,777 2.72


Total for Government Agency Bonds 7.40


Total NAV 25,615,443 100.00

(1) Variable coupon rates are those quoted as of 30 June 2005.(2) Security held as collateral against bond futures positions by the broker.

Marketvalue

% of netassets


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 84


Euro Liquidity Fund

Commercial Paper

Chariot Funding 30/09/2005 12,000,000 11,936,640 2.84Ivory Funding 16/09/2005 10,219,000 10,172,899 2.42Tulip Euro Funding 01/07/2005 10,000,000 10,000,000 2.37Silver Tower Funding 18/07/2005 10,000,000 9,990,493 2.37Societe Generale Australia 29/07/2005 10,000,000 9,983,773 2.37Spintab 09/09/2005 10,000,000 9,959,467 2.36Banque Federale du Credit Mutuel 26/09/2005 10,000,000 9,947,785 2.36Compass Securitization 05/07/2005 9,750,000 9,747,740 2.31Ulster Bank Finance 09/09/2005 9,500,000 9,461,413 2.25Bank of Western Australia 01/07/2005 9,000,000 9,000,000 2.14Quasar Securitization 14/07/2005 8,914,000 8,907,149 2.11LMA 26/07/2005 8,700,000 8,687,292 2.06Sedna Finance 10/08/2005 7,000,000 6,983,725 1.66Cancara Asset Securitization 25/07/2005 6,305,000 6,296,136 1.49Erasmus Capital Group 30/08/2005 6,153,000 6,131,524 1.45Thames Asset Global Securitization 06/07/2005 6,071,000 6,069,240 1.44Toyota Kreditbank 18/07/2005 6,000,000 5,994,097 1.42Links Finance 19/07/2005 6,000,000 5,993,674 1.42Solitaire Funding 22/09/2005 6,000,000 5,971,105 1.42

INVESTMENT AIMS*

To provide liquidity and high current income, tothe extent consistent with the preservation ofcapital, primarily by investing in high qualityshort-term transferable debt securities that aredenominated in Euro, provided that, at thetime of acquisition, their initial or residualmaturity does not exceed 397 days (with theexception of floating rate notes whose initial orresidual maturity may not exceed 24 months)taking into account any financial instrumentsconnected therewith, or the terms andconditions governing those securities providethat the applicable interest rate is adjusted atleast annually on the basis of marketconditions. The Fund may also hold up to 49%of its net assets in cash and cash equivalents.


Investment


I

A

B

1.00

0.75

0.50

0.25

0.00

0.86% 0.79% 0.46% 0.99%

I A B

IX

1.00

0.75

0.50

0.25

0.00

0.86% 0.99%

IX




1 Month Euro LIBID Index (expressed in Euro)



1 Month Euro LIBID Index (expressed in Euro)* The investment objective changed on 17 May 2005: Prior to that date, the Fund’s investment aim asset out in the Annual and Semi annual reports was: “To provide liquidity and high current income, tothe extent consistent with the preservation of capital, primarily by investing in high quality short-termtransferable debt securities that are denominated in Euro, provided that, at the time of acquisition,their initial or residual maturity does not exceed 12 months. The Fund may also hold up to 49% of itsnet assets in cash and cash equivalents.”

% of netassets


specifiedAmortised

Cost

952347-1-007 x-cat 8/22/05 17:52 Page 85


Euro Liquidity Fund


Investment

Investment

Commercial Paper (continued)

Dexia Bank 05/08/2005 5,500,000 5,488,786 1.30MANE Funding 18/07/2005 5,103,000 5,097,882 1.21National Australia Bank 05/07/2005 5,000,000 4,998,837 1.19Rabobank Ireland 05/07/2005 5,000,000 4,998,833 1.19Ormond Quay Funding 06/07/2005 5,000,000 4,998,544 1.19Amstel Euro Funding 07/07/2005 5,000,000 4,998,226 1.19MANE Funding 21/07/2005 5,000,000 4,994,156 1.19Links Finance 28/07/2005 5,000,000 4,992,129 1.18Amstel Euro Funding 17/08/2005 5,000,000 4,986,332 1.18Toyota Kreditbank 29/08/2005 5,000,000 4,982,866 1.18LMA 06/07/2005 4,600,000 4,598,649 1.09Centauri 13/07/2005 4,500,000 4,496,852 1.07Toyota Kreditbank 27/07/2005 4,500,000 4,493,178 1.07Dexia Bank 20/09/2005 4,500,000 4,478,851 1.06Quasar Securitization 01/08/2005 4,465,000 4,456,890 1.06Whistlejacket Capital 25/07/2005 4,148,000 4,142,125 0.98Tango 26/08/2005 4,150,000 4,136,564 0.98Ormond Quay Funding 23/08/2005 4,000,000 3,987,629 0.95Swedish National Housing Finance 02/09/2005 4,000,000 3,985,402 0.95Grampian Funding 15/07/2005 3,500,000 3,497,130 0.83HSBC Bank Australia 26/07/2005 3,500,000 3,494,874 0.83KBC Dublin Capital 05/07/2005 3,000,000 2,999,297 0.71Erasmus Capital Group 16/09/2005 2,558,000 2,546,572 0.60Nordea Bank 01/07/2005 2,500,000 2,500,000 0.59Compass Securitization 18/07/2005 2,000,000 1,998,099 0.47Silver Tower Funding 29/07/2005 2,000,000 1,996,723 0.47National Australia Bank 02/08/2005 2,000,000 1,996,251 0.47Bank of Western Australia 06/09/2005 2,000,000 1,992,202 0.47Ormond Quay Funding 07/09/2005 2,000,000 1,992,071 0.47Whistlejacket Capital 18/07/2005 1,140,000 1,138,865 0.27MANE Funding 11/07/2005 1,000,000 999,394 0.24

Total for Commercial Paper 65.89

Corporate Bonds

Cayman IslandsParkland Finance sr nts unsecur SerEMTN 2.137% 07/07/2005 9,500,000 9,500,000 2.25Centauri nts SerEMTN 2.125% 10/11/2006 6,000,000 5,998,371 1.42Beta Finance nts SerEMTN 2.126% 15/11/2006 6,000,000 5,998,351 1.42Beta Finance nts SerEMTN 2.146% 03/01/2006 5,000,000 4,999,746 1.19Centauri nts SerEMTN 2.146% 03/01/2006 5,000,000 4,999,746 1.19Dorada sr nts SerEMTN 2.146% 03/01/2006 5,000,000 4,999,746 1.19

Total for Cayman Islands 8.66

United KingdomWhistlejacket Capital nts SerEMTN 2.125% 22/08/2005 5,000,000 4,999,785 1.19Alliance Leicesters unsecur sr unsubord SerEMTN 2.203% 23/01/2006 4,500,000 4,501,433 1.07Barclays Bank nts SerEMTN 2.127% 17/07/2006 4,500,000 4,499,639 1.07


SpainBanco Bilbao Vizcaya Argentaria unsecur 2.154% 20/10/2005 13,000,000 12,998,844 3.08



AustraliaNational Australia Bank unsecur unsubord SerEMTN 2.178% 30/09/2005 5,750,000 5,750,483 1.36Commonwealth Bank of Australia nts SerEMTN 2.131% 01/08/2005 4,000,000 3,999,926 0.95


FranceCaisse Nationale des Caisses d’Epargne et de Prevoyance sr unsubord SerEMTN 2.106% 14/11/2005 5,000,000 4,999,171 1.19Caisse Nationale des Caisses d’Epargne et de Prevoyance sr nts unsecur SerEMTN 2.09% 17/11/2005 2,000,000 1,999,739 0.47Banque Federative du Credit Mutuel sr nts SerEMTN 2.286% 18/11/2005 500,000 500,284 0.12


ItalyUnicredito Italiano Bank sr nts unsecur SerEMTN 2.146% 24/08/2005 4,500,000 4,499,907 1.07


IrelandUnicredito Italiano Bank sr unsubord SerEMTN 2.134% 20/07/2006 1,300,000 1,299,673 0.31Unicredito Italiano Bank bnk gtd SerEMTN 2.133% 24/07/2006 1,000,000 999,748 0.24


SwedenSpintab sr nts SerEMTN 2.125% 17/11/2005 2,000,000 1,999,870 0.47


GermanyDeutsche Bank Ser337 1.15% 15/07/2005 1,500,000 1,499,431 0.36



Interest Bearing Certificates of Deposit

BNP Paribas 2.10% 14/07/05 4,500,000 4,496,594 1.07

Total for Interest Bearing Certificates of Deposit 1.07


Total NAV 421,427,955 100.00

% of netassets

% of netassets


specified


specifiedAmortised

Cost

Amortised Cost

952347-1-007 x-cat 8/22/05 17:52 Page 86


US Dollar Liquidity Fund

Commercial Paper

Daimlerchrysler 10/08/2005 11,000,000 10,961,256 4.01Golden Fish 22/07/2005 10,000,000 9,980,808 3.65CAFCO 26/07/2005 10,000,000 9,978,194 3.65Scaldis Capital 18/08/2005 10,000,000 9,957,467 3.64HBOS Treasury Services 28/07/2005 8,600,000 8,579,876 3.14Blue Ridge Assets Funding 05/07/2005 8,000,000 7,997,280 2.92Falcon Asset Securitization 05/08/2005 8,000,000 7,975,344 2.92Amsterdam Funding 18/07/2005 7,000,000 6,989,654 2.55Skandinaviska Enskilda 14/07/2005 6,500,000 6,492,630 2.37Gemini Securitization 08/07/2005 6,000,000 5,996,348 2.19Amsterdam Funding 04/08/2005 6,000,000 5,982,037 2.19Sydney Capital 01/07/2005 5,000,000 5,000,000 1.83Mortgage International Network 06/07/2005 5,000,000 4,997,736 1.83Ranger Funding 15/07/2005 5,000,000 4,993,817 1.83Thames Asset Global Securitization 21/07/2005 5,000,000 4,990,972 1.82Ranger Funding 25/07/2005 5,000,000 4,989,233 1.82

INVESTMENT AIMS*

To provide liquidity and high current income,to the extent consistent with the preservationof capital, primarily by investing in high qualityshort-term transferable debt securities thatare denominated in US Dollars, provided that,at the time of acquisition, their initial orresidual maturity does not exceed 397 days(with the exception of floating rate noteswhose initial or residual maturity may notexceed 24 months) taking into account anyfinancial instruments connected therewith, orthe terms and conditions governing thosesecurities provide that the applicable interestrate is adjusted at least annually on the basisof market conditions. The Fund may also holdup to 49% of its net assets in cash and cashequivalents.


Investment


I

A

B

2.0

1.5

1.0

0.5

0.0

1.20% 1.05% 1.00 1.26%

I A B

IX

AX

BX

2.0

1.5

1.0

0.5

0.0

1.17% 0.98% 0.97% 1.26%

IX AX BX




Salomon 3 Month US T-Bill Index (expressed in US dol-lars)




Fund (net of expenses) Class BX shares

Salomon 3 Month US T-Bill Index (expressed in US dollars)

* The investment objective changed on 17 May 2005: Prior to that date, the Fund’s investmentaim as set out in the Annual and Semi annual reports was: “To provide liquidity and high currentincome, to the extent consistent with the preservation of capital, primarily by investing in highquality short-term transferable debt securities that are denominated in US Dollars, provided that,at the time of acquisition, their initial or residual maturity does not exceed 12 months. The Fundmay also hold up to 49% of its net assets in cash and cash equivalents.”

% of netassets


unless specifiedAmortised

Cost

952347-1-007 x-cat 8/22/05 17:52 Page 87


US Dollar Liquidity Fund


Investment

Commercial Paper (continued)

Thames Asset Global Securitization 26/07/2005 5,000,000 4,988,715 1.82Spintab 12/08/2005 5,000,000 4,981,508 1.82Sydney Capital 16/08/2005 5,000,000 4,979,683 1.82Preferred Receivables 29/08/2005 5,000,000 4,973,532 1.82Old Line Funding 15/07/2005 4,065,000 4,059,941 1.48Sydney Capital 12/07/2005 4,000,000 3,996,126 1.46New Center 18/07/2005 3,000,000 2,995,573 1.09Svenska Handelsbanken 03/08/2005 3,000,000 2,991,310 1.09Swedbank 19/07/2005 2,900,000 2,895,433 1.06Skandinaviska Enskilda 13/07/2005 2,800,000 2,797,013 1.02Gemini Securitization 19/07/2005 2,072,000 2,068,581 0.76BGL 25/07/2005 2,050,000 2,045,627 0.75BNP Paribas 10/08/2005 2,000,000 1,992,822 0.73HBOS Treasury Services 24/08/2005 2,000,000 1,990,160 0.73Danske 08/07/2005 1,900,000 1,898,833 0.69Danske 02/08/2005 1,875,000 1,869,517 0.68Galleon Capital 15/07/2005 1,425,000 1,423,205 0.52UBS Finance 22/07/2005 1,250,000 1,247,703 0.46Yorktown Capital 06/07/2005 1,071,000 1,070,508 0.39

Total for Commercial Paper 62.55

Corporate Bonds

United States of AmericaLloyds TSB Bank 3.23% 30/09/2005 15,000,000 14,997,958 5.48Citigroup nts sr unsecur 3.37% 01/09/2005 13,250,000 13,251,641 4.84General Electric nts 3.2106% 24/10/2005 10,000,000 10,002,790 3.66General Electric Capital nts unsecur SerMTNA 3.41% 03/02/2006 7,000,000 7,010,288 2.56Wells Fargo & Co nts SerMTN 3.51% 29/09/2005 7,000,000 7,001,343 2.56Wells Fargo & Co nts 3.45% 03/03/2006 6,000,000 6,005,566 2.20


SwitzerlandUBS Stamford nts SerYCD 3.03% 03/01/2006 2,000,000 1,999,270 0.73



Interest Bearing Certificates of Deposit

Barclays Bank 3.11% 11/07/2005 9,000,000 9,000,011 3.29HBOS Treasury Services 3.07% 13/07/2005 2,855,000 2,854,966 1.04BNP Paribas 3.04% 12/07/2005 1,425,000 1,424,972 0.52

Total for Interest Bearing Certificates of Deposit 4.85

Federal Agency Discount Notes

Federal Home Loan Bank System unsecur SerDB05 3.045% 02/08/2005 600,000 599,978 0.22

Total for Federal Agency Discount Notes 0.22


Total NAV 273,596,039 100.00

% of netassets


unless specifiedAmortised

Cost

952347-1-007 x-cat 8/22/05 17:52 Page 88


Global Diversified (Euro) Fund

Equities & Warrants

United States of AmericaOracle 238,733 2,687,690 1.15Pfizer 113,117 2,612,666 1.12Intel 100,746 2,194,037 0.93Altria Group 37,654 2,033,663 0.86Loews - Carolina Group 73,310 2,010,726 0.85Watson Pharmaceuticals 71,671 1,782,038 0.76Alcoa 78,546 1,713,826 0.73Johnson & Johnson 31,231 1,702,308 0.72Time Warner 119,322 1,661,114 0.70News ‘A’ 110,923 1,500,937 0.64Cisco Systems 93,113 1,495,555 0.63Xerox 126,723 1,490,797 0.63Microsoft 67,076 1,396,223 0.59Goldman Sachs Group 15,990 1,363,597 0.58Tyco International 55,716 1,354,823 0.57Devon Energy 30,104 1,256,009 0.53Valero Energy 18,579 1,216,456 0.52KLA - Tencor 33,301 1,212,302 0.51Williams Companies 77,457 1,200,396 0.51Newmont Mining 27,590 909,404 0.39


JapanMitsubishi Estate 165,000 1,509,936 0.65Mitsui OSK Lines 274,000 1,406,695 0.60Toyota Motor 47,000 1,398,451 0.59Sumitomo Mitsui Financial Group 220 1,236,639 0.52Ito-Yokado 42,000 1,158,393 0.49Taisei 392,000 1,098,795 0.47NTT DoCoMo 822 1,010,356 0.43Ricoh 77,000 1,000,111 0.42Pioneer 77,000 968,948 0.41Toray Industries 238,000 938,256 0.40Bank of Yokohama 187,000 898,377 0.38Kubota 146,000 665,297 0.28


United KingdomUnilever 310,877 2,472,571 1.05British Energy Group 389,101 2,330,455 0.99Compass Group 665,697 2,325,384 0.99GlaxoSmithKline 99,723 2,032,958 0.86Legal & General Group 1,100,009 1,878,284 0.80Shell Transport & Trading 203,703 1,636,072 0.69


FranceFrance Telecom 102,004 2,483,797 1.05Renault 25,269 1,830,739 0.78BNP Paribas 30,951 1,751,827 0.74Total 8,148 1,584,786 0.67Thomson 79,077 1,578,377 0.67Sanofi-Aventis 22,930 1,559,240 0.66


GermanyMetro 47,077 1,918,388 0.81Deutsche Post Regd 86,070 1,667,176 0.71E.ON 22,240 1,631,526 0.69Siemens Regd 24,687 1,498,007 0.64

6.52% 6.21% 5.68% 9.94%10

8

6

4

2

0I A B

I

A

B




50% MSCI World (Net) Index / 50% JPM GlobalGovernment (Traded) Index (expressed in Euro)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in Euro, by investing in a globallydiversified portfolio of equity and fixedincome securities. The Fund may invest from30% to 80% of the net assets in equities andconvertible securities and from 20% to 70%of the net assets in fixed income securities.The Fund may hold up to 30% of its netassets in cash and cash equivalents, asmarket conditions dictate.


Investment Holding


Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:52 Page 89



Investment Holding

Investment

Equities & Warrants (continued)

Germany (continued)Schering 26,936 1,371,581 0.58Altana 28,186 1,327,561 0.56


CanadaBarrick Gold 74,380 1,592,072 0.67Meridian Gold 95,259 1,431,236 0.61Nexen 52,088 1,302,038 0.55Placer Dome 77,237 1,006,673 0.43


NetherlandsTNT 117,207 2,466,035 1.04Aegon 163,655 1,759,291 0.75


SwitzerlandRoche Holding ‘Genußschein’ 18,865 1,970,770 0.84Zürich Financial Services Regd 13,353 1,888,094 0.80


ItalyTelecom Italia ‘RNC’ 816,466 1,761,525 0.74UniCredito Italiano 352,881 1,546,501 0.66


BarbadosNabors Industries 45,417 2,245,699 0.95

Total for Barbados 0.95

BrazilCompanhia Vale do Rio Doce ADR 86,333 2,125,109 0.90


South KoreaSamsung Electronics GDR Regd 1/2 non vtg Pfd 15,185 2,050,325 0.87


Russian FederationPyaterochka Holding GDR 166,734 1,971,178 0.84


AustraliaMacquarie Infrastructure Group 746,015 1,956,519 0.83


SpainBanco Bilbao Vizcaya Argentaria 126,674 1,627,761 0.69



FinlandNokia 114,274 1,598,693 0.68


South AfricaSteinhoff International Holdings 717,183 1,352,455 0.57


Hong KongHenderson Land Development 338,000 1,341,999 0.57


Total for Equities & Warrants 47.49

Government Bonds

United States of AmericaUS Treasury 4.75% /2014 (USD) 7,620,000 6,689,271 2.84US Treasury 0.875% /2010 (USD) 6,900,000 5,591,205 2.37US Treasury 3.625% /2007 (USD) 5,710,000 4,735,732 2.01US Treasury 5.5% /2028 (USD) 2,960,000 2,870,888 1.22


ItalyRepublic of Italy SerINTL 0.375% /2006 (JPY) 761,000,000 5,732,761 2.43Republic of Italy 3.75% /2007 (USD) 5,760,000 4,756,235 2.02Infrastrutture nts SerCPI 2.25% /2019 4,110,000 4,587,171 1.95


FranceGovernment of France 3% /2012 4,550,000 5,599,883 2.38French Treasury Note BTAN 3% /2008 5,440,000 5,568,384 2.36


GermanyDeutsche Bundesrepublik Ser99 4% /2009 5,200,000 5,520,177 2.34Deutsche Bundesrepublik Principal Strips 0% /2028 4,500,000 1,929,600 0.82


SwedenSwedish Government Ser3105 3.5% /2015 (SEK) 33,550,000 4,656,661 1.98


New ZealandGovernment of New Zealand Ser216 4.5% /2016 (NZD) 6,040,000 4,634,594 1.97




Marketvalue

% of netassets

Marketvalue

Holding/Nominal in

Euro unlessspecified

% of netassets

952347-1-007 x-cat 8/22/05 17:52 Page 90




Investment

Investment

Corporate Bonds

GermanyKfW - Kreditanstalt fuer Wiederaufbau govt gtd sr 3% /2007 4,980,000 5,079,849 2.15Berlin-Hannover Hypothekenbank secured jumbo pfandbrief Ser138 2.5% /2006 4,990,000 5,016,198 2.13Metro nts SerEMTN 5.125% /2008 810,000 862,207 0.37


United States of AmericaDaimlerChrysler NA Holding unsecur sr co gtd SerEMTN 2.597% /2007 (1) 870,000 868,734 0.37Citigroup nts 5.75% /2006 (USD) 1,030,000 868,583 0.37Coca-Cola Enterprises sr nts unsecur SerEMTN 5.875% /2007 810,000 855,570 0.36Goldman Sachs Group nts 4.25% /2010 800,000 850,683 0.36General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 785,000 828,234 0.35


NetherlandsBank Nederlandse Gemeenten 3.5% /2008 unsecur sr unsubord SerEMTN 2,750,000 2,840,926 1.21Deutsche Telekom International Finance unsecur unsubord co gtd 6.375% /2006 795,000 824,236 0.35


United KingdomHBOS Treasury Services bnk gtd SerEMTN 2.1705% /2009 (1) 870,000 869,272 0.37FCE Bank unsubord SerEMTN 5.75% /2006 (GBP) 450,000 660,508 0.28ASIF III secur SerEMTN 5.75% /2005 625,000 629,773 0.27


FranceRenault unsecur sr unsubord SerEMTN 6.125% /2009 740,000 831,668 0.35Caisse d’Amortissement de la Dette Sociale unsubord SerEMTN 3.25% /2007 (USD) 1,000,000 817,066 0.35


South KoreaKorea Development Bank nts 4.25% /2007 (USD) 1,060,000 879,205 0.37


MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 770,000 872,794 0.37


ItalyOlivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 715,000 870,763 0.37



CanadaImperial Tobacco Canada unsecur co gtd 5.125% /2006 815,000 845,330 0.36




Total NAV 235,676,005 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets


specified


specified

952347-1-007 x-cat 8/22/05 17:52 Page 91

Global Diversified (USD) Fund

Equities & Warrants

United States of AmericaOracle 16,835 228,451 1.14Pfizer 8,071 224,697 1.11Intel 7,329 192,386 0.95Johnson & Johnson 2,719 178,638 0.88Altria Group 2,649 172,450 0.85Loews - Carolina Group 4,888 161,597 0.80Alcoa 5,765 151,620 0.75Xerox 10,403 147,515 0.73Watson Pharmaceuticals 4,751 142,387 0.71Time Warner 8,459 141,942 0.70Cisco Systems 6,549 126,789 0.63News ‘A’ 7,583 123,679 0.61Goldman Sachs Group 1,173 120,573 0.60Microsoft 4,718 118,375 0.59Tyco International 3,950 115,775 0.57Devon Energy 2,114 106,313 0.53Valero Energy 1,305 102,991 0.51Williams Companies 5,443 101,675 0.50KLA - Tencor 2,267 99,476 0.49Newmont Mining 2,471 98,173 0.49


JapanMitsubishi Estate 14,000 154,424 0.77Toyota Motor 3,800 136,284 0.68Mitsui OSK Lines 22,000 136,140 0.67Taisei 30,000 101,360 0.50Ricoh 6,000 93,934 0.47NTT DoCoMo 62 91,856 0.45Ito-Yokado 2,700 89,760 0.44Sumitomo Mitsui Financial Group 13 88,080 0.44Bank of Yokohama 15,000 86,860 0.43Pioneer 5,700 86,456 0.43Toray Industries 18,000 85,532 0.42Kubota 10,000 54,926 0.27


United KingdomUnilever 22,475 215,463 1.07Compass Group 44,072 185,564 0.92GlaxoSmithKline 7,545 185,398 0.92British Energy Group 25,206 181,968 0.90Legal & General Group 77,903 160,337 0.79Shell Transport & Trading 15,066 145,853 0.72


FranceFrance Telecom 7,478 219,481 1.10Renault 1,782 155,618 0.77BNP Paribas 2,174 148,316 0.73Total 570 133,631 0.66Thomson 5,463 131,433 0.65Sanofi-Aventis 1,562 128,027 0.63


GermanyMetro 3,297 161,942 0.80Deutsche Post Regd 6,322 147,604 0.73Siemens Regd 1,829 133,774 0.66E.ON 1,489 131,664 0.65

0.32% 0.06% (0.43)% (2.08)%0.5

0

-0.5

-1.0

-1.5

-2.0

-2.5I A B

I

A

B




50% MSCI World (Net) Index / 50% IPM GlobalGovernment (Traded) Index (expressed in US dollars)


INVESTMENT AIMS

To seek long-term capital appreciation,measured in US Dollars, by investing in aglobally diversified portfolio of equity andfixed income securities. The Fund may investfrom 30% to 80% of the net assets in equitiesand convertible securities and from 20% to70% of the net assets in fixed incomesecurities. The Fund may hold up to 30% ofits net assets in cash and cash equivalents,as market conditions dictate.


Investment Holding



Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:52 Page 92




Investment Holding

Investment


Germany (continued)Schering 1,994 122,385 0.61Altana 1,979 112,352 0.56


CanadaBarrick Gold 5,219 134,650 0.67Meridian Gold 6,688 121,120 0.60Nexen 3,658 110,216 0.55Placer Dome 5,419 85,132 0.42


SwitzerlandRoche Holding ‘Genußschein’ 1,552 195,427 0.97Zürich Financial Services Regd 940 160,209 0.79


NetherlandsTNT 7,213 182,926 0.91Aegon 11,886 154,013 0.76


ItalyTelecom Italia ‘RNC’ 58,540 152,236 0.75UniCredito Italiano 24,670 130,318 0.65


BarbadosNabors Industries 3,271 194,952 0.97

Total for Barbados 0.97

BrazilCompanhia Vale do Rio Doce ADR 5,964 176,952 0.88


Russian FederationPyaterochka Holding GDR 12,222 174,164 0.86


AustraliaMacquarie Infrastructure Group 53,189 168,140 0.83


South KoreaSamsung Electronics GDR 813 132,926 0.66Samsung Electronics GDR Regd 1/2 non vtg Pfd 202 32,876 0.16


FinlandNokia 8,404 141,715 0.70



SpainBanco Bilbao Vizcaya Argentaria 8,851 137,091 0.68


Hong KongHenderson Land Development 26,000 124,429 0.62


South AfricaSteinhoff International Holdings 48,225 109,617 0.54


Total for Equities & Warrants 47.95

Government Bonds

ItalyRepublic of Italy 3.75% /2007 415,000 413,050 2.05Republic of Italy SerINTL 0.375% /2006 (JPY) 45,000,000 408,606 2.02Infrastrutture nts SerCPI 2.25% /2019 (EUR) 275,000 378,403 1.87Republic of Italy nts 3.25% /2009 340,000 330,803 1.64Infrastrutture nts SerCPI 2.25% /2019 (EUR) 20,000 26,906 0.13


United States of AmericaUS Treasury 4.75% /2014 550,000 581,969 2.89US Treasury 0.875% /2010 505,000 493,243 2.44US Treasury 5.5% /2028 285,000 333,183 1.65US Treasury 3.625% /2007 320,000 319,899 1.58


Supra-NationalEuropean Investment Bank nts 3% /2006 415,000 412,012 2.05International Bank for Reconstruction & Development nts 5% /2006 405,000 408,848 2.02

Total for Supra-National 4.07

FranceFrench Treasury Note BTAN 3% /2008 (EUR) 395,000 487,350 2.41Government of France 3% /2012 (EUR) 162,000 240,323 1.19


SwedenSwedish Government Ser3105 3.5% /2015 (SEK) 2,440,000 408,211 2.02


New ZealandGovernment of New Zealand Ser216 4.5% /2016 (NZD) 430,000 397,701 1.97


GermanyDeutsche Bundesrepublik Principal Strips 0% /2028 (EUR) 300,000 155,056 0.77



Marketvalue

Holding/Nominal inUS dollars

unless specified% of net

assets

Marketvalue

% of netassets

952347-1-007 x-cat 8/22/05 17:52 Page 93




Investment

Investment

Corporate Bonds

GermanyKfW - Kreditanstalt fuer Wiederaufbau govt gtd sr 3% /2007 (EUR) 330,000 405,741 2.01Metro nts SerEMTN 5.125% /2008 (EUR) 60,000 76,982 0.38


NetherlandsBank Nederlandse Gemeenten nts SerEMTN 4.375% /2009 305,000 309,270 1.53Deutsche Telekom International Finance unsecur unsubord co gtd 6.375% /2006 (EUR) 60,000 74,981 0.37


United States of AmericaCitigroup nts 5.75% /2006 80,000 81,316 0.39Goldman Sachs Group nts 4.25% /2010 (EUR) 60,000 76,903 0.38Coca-Cola Enterprises sr nts unsecur SerEMTN 5.875% /2007 (EUR) 60,000 76,390 0.38General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 (EUR) 60,000 76,304 0.38DaimlerChrysler NA Holding unsecur sr co gtd SerEMTN 2.597% /2007 (1) (EUR) 55,000 66,198 0.33


United KingdomHBOS Treasury Services bnk gtd SerEMTN 2.1705% /2009 (1) (EUR) 65,000 78,282 0.39FCE Bank unsubord SerEMTN 5.75% /2006 (GBP) 40,000 70,768 0.35ASIF III secur SerEMTN 5.75% /2005 (EUR) 50,000 60,728 0.30


FranceCaisse d’Amortissement de la Dette Sociale unsubord SerEMTN 3.25% /2007 80,000 78,787 0.39Renault unsecur sr unsubord SerEMTN 6.125% /2009 (EUR) 50,000 67,733 0.34


ItalyOlivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 (EUR) 55,000 80,736 0.40


South KoreaKorea Development Bank nts 4.25% /2007 80,000 79,980 0.40


CanadaImperial Tobacco Canada unsecur co gtd 5.125% /2006 (EUR) 60,000 75,012 0.37



MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 (EUR) 60,000 81,975 0.41




Total NAV 20,191,719 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets


unless specified


unless specified

952347-1-007 x-cat 8/22/05 17:52 Page 94

Open forward foreign currency exchange contracts


The accompanying notes are an integral part of these financial statements.

Emerging Markets Equity Fund22 July 2005 5,364,000 USD 35,155,656 ZAR 99,352

14 November 2005 98,962,182 ZAR 12,108,591 EUR (14,904)14 November 2005 15,479,288 USD 98,962,182 ZAR 815,971 14 November 2005 11,921,000 EUR 98,962,182 ZAR (212,497)

Total for Emerging Markets Equity Fund USD 687,922

European Equity Fund4 August 2005 1,685,605 GBP 3,785,000 CHF 55,706 4 August 2005 1,648,939 GBP 18,000,000 DKK 32,557 4 August 2005 5,071,759 GBP 7,400,000 EUR 129,758

Total for European Equity Fund EUR 218,021

Global Brands Fund21 July 2005 255,731,627 USD 134,155,000 GBP 15,270,863

Total for Global Brands Fund USD 15,270,863

World Equity Fund4 August 2005 130,000,000 JPY 958,896 EUR 20,809 4 August 2005 668,009 USD 530,000 EUR 28,485 4 August 2005 849,571 USD 6,200,000 SEK 55,379 4 August 2005 110,000,000 JPY 1,074,014 USD (77,362)4 August 2005 1,300,000 GBP 2,475,265 USD (146,385)4 August 2005 3,500,000 CAD 2,821,799 USD 19,462 4 August 2005 3,150,000 AUD 2,449,535 USD (60,541)

Total for World Equity Fund (USD 160,153)

Euro Corporate Bond Fund7 July 2005 1,634,603 EUR 2,042,842 USD (60,033)

13 July 2005 20,337,065 EUR 26,415,000 USD (1,570,924)14 July 2005 760,238 EUR 525,000 GBP (20,404)

Total for Euro Corporate Bond Fund (EUR 1,651,361)

Euro Strategic Bond Fund7July 2005 1,524,611 EUR 2,025,000 USD (155,225)

12 July 2005 1,502,897 EUR 200,000,000 JPY 3,219 13 July 2005 7,134,738 EUR 9,260,000 USD (545,291)14 July 2005 1,453,254 EUR 1,000,000 GBP (33,684)

Total for Euro Strategic Bond Fund (EUR 730,981)

European Currencies High Yield Bond Fund26 July 2005 12,498,000 EUR 16,606,762 USD (1,269,081)

23 September 2005 1,131,854 USD 623,000 GBP 14,298 23 September 2005 2,705,840 USD 1,490,000 GBP 33,236

Total for European Currencies High Yield Bond Fund (EUR 1,221,547)

Global Bond Fund7 July 2005 1,555,158 USD 1,900,000 CAD 13,724

13 July 2005 4,172,335 USD 3,250,000 EUR 253,729 14 July 2005 1,714,947 USD 950,000 GBP 11,692

Total for Global Bond Fund USD 279,145

Fund Maturity date Amount bought Amount sold

Unrealizedgain/(loss) as at

30 June 2005

952347-1-007 x-cat 8/22/05 17:52 Page 95



Open forward foreign currency exchange contracts (continued)

Global Convertible Bond (Euro) Fund22 July 2005 13,903,784 EUR 21,400,000 CHF 76,871 22 July 2005 17,325,651 EUR 12,195,000 GBP (796,886)22 July 2005 8,916,413 EUR 1,368,000,000 JPY (1,347,558)22 July 2005 201,195,653 EUR 272,200,000 USD (24,490,557)

Total for Global Convertible Bond (Euro) Fund (EUR 26,558,130)

Global Convertible Bond (USD) Fund22 July 2005 3,239,124 USD 3,850,000 CHF 238,888 22 July 2005 14,178,218 USD 10,485,000 EUR 1,532,263 22 July 2005 4,671,968 USD 2,385,000 GBP 397,237 22 July 2005 1,258,096 USD 126,500,000 JPY 113,366

Total for Global Convertible Bond (USD) Fund USD 2,281,754

Global Diversified (Euro) Fund18 August 2005 13,791,068 EUR 9,479,000 GBP (267,706)18 August 2005 4,565,635 EUR 42,102,000 SEK 95,139 18 August 2005 31,355,307 EUR 39,351,000 USD (1,237,311)

Total for Global Diversified (Euro) Fund (EUR 1,409,878)

Global Diversified (USD) Fund18 August 2005 3,573,112 USD 2,845,000 EUR 138,173 18 August 2005 1,242,295 USD 679,000 GBP 26,413

Total for Global Diversified (USD) Fund USD 164,586

Fund Maturity date Amount bought Amount sold


30 June 2005

952347-1-007 x-cat 8/22/05 17:52 Page 96


Open futures contracts


Fund Maturity date

Emerging Markets Debt FundUS 2yr T-note Future September 2005 (197) 29,580

Total for Emerging Markets Debt Fund (USD 40,929,828)* USD 29,580

* Cash USD 361,199 held as collateral.

Euro Corporate Bond FundUS 5yr T-note Future September 2005 (69) 2,684US 10yr T-note Future September 2005 (91) 12,386US Long Bond Future September 2005 (65) (56,310)US 10yr SWAPNote September 2005 (60) (22,800)

Total for Euro Corporate Bond Fund (EUR 28,538,531)** (EUR 64,040)

** Cash EUR 721,013 held as collateral.

Euro Strategic Bond FundUS 10yr T-Note Future September 2005 (81) 11,025US Long Bond Future September 2005 (32) (27,722)

Total for Euro Strategic Bond Fund (EUR 10,749,614)*** (EUR 16,697)

*** Cash EUR 199,543 held as collateral.

European Currencies High Yield Bond FundUS 5yr T-note Future September 2005 (54) 324

Total for European Currencies High Yield Bond Fund (EUR 4,874,829)**** EUR 324

**** 50,000 US Treasury Bill 14/07/2005 held as collateral.

Global Bond FundUS 5yr T-note Future September 2005 (223) (13,296)US 10yr T-note Future September 2005 (48) (43,500)

Total for Global Bond Fund (USD 29,703,438)***** (USD 56,796)

***** Cash USD 510,658 held as collateral.

US Bond FundUS 5yr T-note Future September 2005 (483) (25,262)US 2yr T-note Future September 2005 (430) 56,194US 10yr T-note Future September 2005 53 (6,469)US Long Bond Future September 2005 (8) 7,750

Total for US Bond Fund (USD 148,845,391)****** USD 32,213

****** 520,000 US Treasury Bill 14/07/2005 held as collateral.****** Cash USD 713,313 held as collateral.

US Dollar Short Duration FundUS 5yr T-note Future September 2005 (15) (3,058)US 2yr T-note Future September 2005 (35) (4,819)US 10yr T-note Future September 2005 (5) (4,757)

Total for US Dollar Short Duration Fund (USD 9,470,469)******* (USD 12,634)

******* 120,000 US Treasury Bill 14/07/2005 held as collateral.******* Cash USD 8,571 held as collateral.


30 June 2005Notional

commitmentsNumber

of contracts

952347-1-007 x-cat 8/22/05 17:52 Page 97



Emerging Emerging European Asian Asian Europe and Markets European European Small Cap

Equity Property Middle East Equity Equity Property ValueFund Fund Equity Fund Fund Fund Fund Fund

USD USD EUR USD EUR EUR EUR USD

AssetsInvestment securities - at costUnrealized appreciation/(depreciation)

Investment securities at market value

Unrealized gain on open futures contractsUnrealized gain on open forward foreign exchange contractsCash at banksTime depositsReceivables for investments soldReceivables for subscriptionsAccrued income and prepaid expenses

Total assets

LiabilitiesUnrealized loss on open futures contractsUnrealized loss on open forward foreign exchange contractsBank overdraftsDistribution payablePayables for investments purchasedPayables for redemptionsOther payables and accrued expenses

Total liabilities

Net asset value

+ Represents the combined totals of all Morgan Stanley SICAV Funds.

Statement of assets and liabilitiesAs at 30 June 2005

297,121,596 261,503,323 134,934,793 325,915,254 221,114,678 312,302,551 48,015,357 13,131,905,98474,729,083 7,580,912 18,956,330 81,356,607 20,448,721 66,358,350 8,528,098 1,193,537,522

371,850,679 269,084,235 153,891,123 407,271,861 241,563,399 378,660,901 56,543,455 14,325,443,506

- - - - - - - 62,184

- - - 687,922 218,021 - - 18,947,073 9,844,962 16,892,727 7,540,539 8,411,098 4,309,787 2,789,896 2,328,884 515,502,858

- - - - - - - 197,144,108849,208 588,728 - 3,808,855 336,197 1,535,169 85,768 65,054,834

1,114,200 8,572,670 1,995,259 636,575 434,360 7,028,768 827,834 84,091,676 1,063,325 914,401 138,770 1,449,067 379,838 1,197,526 90,981 103,216,215

384,722,374 296,052,761 163,565,691 422,265,378 247,241,602 391,212,260 59,876,922 15,309,462,454

- - - - - - - 166,750

- - - - - - - 38,216,924 - - 14 - - - - 17 - - - - - - - 11,072

181,338 9,360,490 15,174 2,729,073 - - 575,354 161,376,028 1,008,203 495,815 940,594 646,242 416,990 2,269,934 407,881 83,363,026

966,775 623,205 542,585 1,668,532 744,304 1,025,680 263,391 37,929,631

2,156,316 10,479,510 1,498,367 5,043,847 1,161,294 3,295,614 1,246,626 321,063,448

382,566,058 285,573,251 162,067,324 417,221,531 246,080,308 387,916,646 58,630,296 14,988,399,006

Combinedtotals of all

funds +

952347-1-007 x-cat 8/22/05 17:52 Page 98

Statement of assets and liabilities (continued)As at 30 June 2005



Global Japanese LatinEuropean Global Small Cap Global Equity Japanese American

Value Equity Brands Value Value Equity Growth Value Equity EquityFund Fund Fund Fund Fund Fund Fund

EUR USD USD USD JPY JPY USD USD




Total assets


Total liabilities

Net asset value


331,495,648 1,362,935,579 154,810,643 1,078,552,517 18,359,034,394 51,988,270,718 257,403,766 13,131,905,98447,708,325 177,071,145 30,073,155 131,764,933 2,261,010,006 4,840,200,282 81,012,802 1,193,537,522

379,203,973 1,540,006,724 184,883,798 1,210,317,450 20,620,044,400 56,828,471,000 338,416,568 14,325,443,506

- - - - - - - 62,184

- 15,270,863 - - - - - 18,947,073 4,479,641 103,990,030 9,005,545 34,858,665 2,144,188,876 459,508,420 4,760,651 515,502,858

- - - - - - - 197,144,108- - 705,307 - 12,240,470 - 5,295,631 65,054,834

1,504,640 3,629,967 122,270 837,078 54,898,116 584,397,957 1,260,969 84,091,676 758,813 3,221,609 175,154 2,794,591 13,330,220 16,610,093 704,915 103,216,215

385,947,067 1,666,119,193 194,892,074 1,248,807,784 22,844,702,082 57,888,987,470 350,438,734 15,309,462,454

- - - - - - - 166,750

- - - - - - - 38,216,924 - - - - - - - 17 - - - - - - - 11,072

60,830 27,844,957 2,502,492 - 1,497,486,962 - 3,070,412 161,376,028 1,068,362 16,647,864 1,169,073 988,892 39,724,506 118,821,127 811,268 83,363,026 1,106,121 3,903,337 634,203 3,185,114 61,095,522 161,948,253 904,570 37,929,631

2,235,313 48,396,158 4,305,768 4,174,006 1,598,306,990 280,769,380 4,786,250 321,063,448

383,711,754 1,617,723,035 190,586,306 1,244,633,778 21,246,395,092 57,608,218,090 345,652,484 14,988,399,006


funds +

952347-1-007 x-cat 8/22/05 17:52 Page 99




US US Emerging US Equity US Small Cap US World Markets

Equity Growth Property Growth Value Equity Equity DebtFund Fund Fund Fund Fund Fund Fund

USD USD USD USD USD USD USD USD




Total assets


Total liabilities

Net asset value


143,395,691 245,878,018 127,942,077 189,588,648 1,599,603,808 78,041,500 204,141,837 13,131,905,98412,950,637 30,008,874 37,121,514 37,769,689 80,379,982 5,751,194 15,052,872 1,193,537,522

156,346,328 275,886,892 165,063,591 227,358,337 1,679,983,790 83,792,694 219,194,709 14,325,443,506

- - - - - - 29,580 62,184

- - - - - - - 18,947,073 8,980,338 4,630,537 1,846,741 16,436,901 51,252,319 1,160,615 8,287,791 515,502,858

- - - - - - - 197,144,1085,228,128 3,648,941 128,195 2,578,046 432,549 197,175 17,967 65,054,834 1,839,592 167,091 3,989,496 555,326 8,682,547 - 995,236 84,091,676

121,352 83,185 541,880 90,109 2,748,985 101,368 3,789,173 103,216,215

172,515,738 284,416,646 171,569,903 247,018,719 1,743,100,190 85,251,852 232,314,456 15,309,462,454

- - - - - - - 166,750

- - - - - 160,153 - 38,216,924 - - - - - - - 17 - - - - - - - 11,072

5,007,462 1,709,999 597,079 4,587,155 889,138 394,929 482,656 161,376,028 310,665 324,817 339,977 155,806 15,980,970 50,179 544,367 83,363,026 496,426 780,828 956,367 715,946 4,516,472 290,776 694,453 37,929,631

5,814,553 2,815,644 1,893,423 5,458,907 21,386,580 896,037 1,721,476 321,063,448

166,701,185 281,601,002 169,676,480 241,559,812 1,721,713,610 84,355,815 230,592,980 14,988,399,006


funds +

952347-1-007 x-cat 8/22/05 17:52 Page 100




Euro Euro European Global GlobalEuro Corporate Strategic Currencies High Global Convertible ConvertibleBond Bond Bond Yield Bond Bond Bond BondFund Fund Fund Fund Fund (Euro) Fund (USD) Fund

EUR EUR EUR EUR USD EUR USD USD




Total assets


Total liabilities

Net asset value


834,928,211 371,697,623 536,951,534 59,572,898 290,604,520 304,633,342 64,373,951 13,131,905,98440,351,780 13,952,824 23,039,758 (7,673,036) 9,394,755 10,507,847 (1,159,746) 1,193,537,522

875,279,991 385,650,447 559,991,292 51,899,862 299,999,275 315,141,189 63,214,205 14,325,443,506

- - - 324 - - - 62,184

- - - - 279,145 - 2,281,754 18,947,073 985,751 1,550,489 1,035,522 1,756,369 32,228,223 54,719,388 9,237,833 515,502,858

42,725,585 3,742,807 22,328,089 - - - - 197,144,10810,282,250 1,900,260 143,361 226,840 8,071,875 7,399,221 1,727,864 65,054,834 11,644,953 1,577,659 3,639,931 454,507 628,035 2,667,359 182,118 84,091,676 22,173,681 7,229,316 14,439,074 1,033,327 4,261,794 2,005,822 372,830 103,216,215

963,092,211 401,650,978 601,577,269 55,371,229 345,468,347 381,932,979 77,016,604 15,309,462,454

- 64,040 16,697 - 56,796 - - 166,750

- 1,651,361 730,981 1,221,547 - 26,558,130 - 38,216,924 - - - - - - - 17 - - - - - - - 11,072

18,922,716 1,847,281 2,035,627 - 8,717,192 1,318,540 330,086 161,376,028 4,625,269 3,682,474 430,472 92,942 7,039,776 8,968,145 2,597,527 83,363,026 1,582,012 684,779 950,012 152,685 639,957 1,995,046 216,139 37,929,631

25,129,997 7,929,935 4,163,789 1,467,174 16,453,721 38,839,861 3,143,752 321,063,448

937,962,214 393,721,043 597,413,480 53,904,055 329,014,626 343,093,118 73,872,852 14,988,399,006


funds +

952347-1-007 x-cat 8/22/05 17:52 Page 101




Short Maturity US Dollar Euro US Dollar Global GlobalEuro Bond US Bond Short Duration Liquidity Liquidity Diversified Diversified

Fund Fund Fund Fund Fund (Euro) Fund (USD) Fund

EUR USD USD EUR USD EUR USD USD




Total assets


Total liabilities

Net asset value


578,154,031 350,737,739 23,733,462 373,238,847 245,277,226 188,397,851 17,120,325 13,131,905,9842,972,450 7,872,245 (316,666) - - 12,603,833 274,357 1,193,537,522

581,126,481 358,609,984 23,416,796 373,238,847 245,277,226 201,001,684 17,394,682 14,325,443,506

- 32,213 - - - - - 62,184

- - - - - - 164,586 18,947,073 781,847 21,597,396 2,181,924 232,621 115,437 36,610,950 2,672,544 515,502,858

23,314,222 - - 48,103,401 28,130,000 - - 197,144,108- 4,157,319 13,029 - - 842,630 70,540 65,054,834

4,376,316 686,378 - - - 684,637 14,465 84,091,676 12,435,557 3,029,438 192,288 377,282 433,462 1,386,055 137,862 103,216,215

622,034,423 388,112,728 25,804,037 421,952,151 273,956,125 240,525,956 20,454,679 15,309,462,454

- - 12,634 - - - - 166,750

- - - - - 1,409,878 - 38,216,924 - - - - - - - 17 - - - 6 11,065 - - 11,072 - 47,218,906 106,828 - - 1,744,372 150,753 161,376,028

2,649,782 602,352 - - - 1,164,866 11,430 83,363,026 1,124,721 670,411 69,132 524,190 349,021 530,835 100,777 37,929,631

3,774,503 48,491,669 188,594 524,196 360,086 4,849,951 262,960 321,063,448

618,259,920 339,621,059 25,615,443 421,427,955 273,596,039 235,676,005 20,191,719 14,988,399,006


funds +

952347-1-007 x-cat 8/22/05 17:52 Page 102



Statement of changes in number of sharesFor the six months ended 30 June 2005

Emerging Emerging Asian Asian Europe and Markets European European

Equity Property Middle East Equity Equity PropertyFund Fund Equity Fund Fund Fund Fund

USD USD EUR USD EUR EUR

Shares at the start of the periodNumber of shares issuedNumber of shares redeemed

Shares at the end of the period

Net asset value per share class I



Net asset value per share class A



Net asset value per share class B



Net asset value per share class IX



Net asset value per share class AX



Net asset value per share class BX



Net asset value per share class M



Net asset value per share class MX



Net asset value per share class S

* Share class opened for subscriptions on 1 June 2005.

8,972,611 5,580,621 220,611 7,770,860 4,192,728 4,555,2831,365,964 9,572,310 870,531 737,641 319,088 2,959,046(1,726,930) (943,391) (655,682) (2,361,349) (826,159) (2,250,862)

8,611,645 14,209,540 435,460 6,147,152 3,685,657 5,263,467

24.02 10.97 39.02 20.53 7.27 25.42

6,758,576 6,327,048 1,011,962 14,609,547 33,421,259 10,643,1452,332,815 7,997,633 2,868,053 5,605,957 5,004,079 7,319,738(2,237,798) (2,799,456) (1,124,977) (6,513,809) (10,900,264) (8,741,804)

6,853,593 11,525,225 2,755,038 13,701,695 27,525,074 9,221,079

22.86 10.45 37.97 19.57 7.05 24.25

779,061 331,916 471,650 1,176,632 4,188,947 1,076,904383,185 1,040,838 679,711 313,162 593,087 1,067,330(257,227) (453,556) (282,562) (249,980) (1,008,571) (798,180)

905,019 919,198 868,799 1,239,814 3,773,463 1,346,054

21.08 10.13 37.26 18.37 6.70 22.66

- - - - - - - - 207,420 505 - 329 - - - - - -

- - 207,420 505 - 329

- - *39.01 *20.53 - *25.42

- - - - - - - - 224 529 - 345 - - - - - -

- - 224 529 - 345

- - *37.97 *19.57 - *24.25

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

952347-1-007 x-cat 8/22/05 17:52 Page 103



Statement of changes in number of shares (continued)For the six months ended 30 June 2005

European Global Japanese Small Cap European Global Small Cap Global Equity

Value Value Equity Brands Value Value Equity GrowthFund Fund Fund Fund Fund Fund

EUR EUR USD USD USD JPY





























223,977 2,763,707 9,420,087 2,506,821 12,839,516 1,600,653225,503 433,885 12,245,654 280,058 1,393,096 6,018,366(209,112) (302,033) (5,620,316) (490,284) (1,718,801) (1,287,286)

240,368 2,895,559 16,045,425 2,296,595 12,513,811 6,331,733

36.73 28.67 44.16 30.24 40.01 844.08

717,528 11,043,452 13,836,418 4,008,410 19,385,135 11,932,8721,100,515 2,188,166 10,105,777 1,422,413 2,873,328 15,830,101

(689,514) (3,568,572) (5,509,938) (1,752,227) (4,056,609) (9,267,833)

1,128,529 9,663,046 18,432,257 3,678,596 18,201,854 18,495,140

35.91 27.25 42.93 28.79 38.06 818.51

99,863 1,486,441 2,204,849 570,357 1,596,300 842,752252,904 461,531 1,454,073 165,939 143,967 584,698(85,403) (463,659) (783,841) (174,211) (283,951) (463,004)

267,364 1,484,313 2,875,081 562,085 1,456,316 964,446

34.61 25.18 41.01 27.09 35.13 789.28

- - - - - - 231 - - - - 1,339

- - - - - -

231 - - - - 1,339

*36.73 - - - - *844.08

- - - - - - 236 - - - - 1,380

- - - - - -

236 - - - - 1,380

*35.91 - - - - *818.52

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

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Latin US US Japanese American US Equity US Small Cap

Value Equity Equity Equity Growth Property GrowthFund Fund Fund Fund Fund Fund

JPY USD USD USD USD USD






























12,515,746 9,072,013 28,946 2,004,267 2,042,992 1,190,0908,758,872 1,308,146 260 367,278 941,272 126,385(5,344,585) (2,248,111) (12,336) (267,046) (1,510,617) (389,994)

15,930,033 8,132,048 16,870 2,104,499 1,473,647 926,481

959.53 27.89 25.02 29.78 39.08 41.74

45,129,380 3,442,488 7,385,978 8,915,963 1,966,162 4,716,46314,855,173 2,999,922 3,195,321 2,020,652 1,716,049 1,868,454(19,261,402) (3,113,373) (3,930,636) (4,086,376) (1,059,078) (1,925,911)

40,723,151 3,329,037 6,650,663 6,850,239 2,623,133 4,659,006

912.68 26.55 24.62 28.31 37.33 39.71

6,437,935 740,286 81,994 1,040,755 357,698 508,190982,473 1,018,439 52,749 142,154 138,282 69,630

(1,246,086) (510,718) (28,560) (229,412) (85,273) (90,216)

6,174,322 1,248,007 106,183 953,497 410,707 487,604

834.65 24.42 23.75 26.20 34.39 36.63

- - - - - - 1,156 - - - 270 -

- - - - - -

1,156 - - - 270 -

*959.54 - - - *39.09 -

- - - - - - 1,215 - - - 282 -

- - - - - -

1,215 - - - 282 -

*912.69 - - - *37.34 -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

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Emerging Euro Euro US World Markets Euro Corporate Strategic

Value Equity Equity Debt Bond Bond BondFund Fund Fund Fund Fund Fund

USD USD USD EUR EUR EUR





























12,225,103 3,225,791 774,923 19,102,268 2,955,164 5,041,33015,130,282 3,440 492,569 6,900,845 2,135,770 5,729,184(4,205,157) (3,083,914) (475,748) (7,569,802) (767,511) (1,733,347)

23,150,228 145,317 791,744 18,433,311 4,323,423 9,037,167

20.47 22.16 46.74 11.06 31.91 30.25

59,732,227 8,386,263 2,983,275 39,645,774 7,002,972 10,448,01334,986,972 1,179,963 2,042,660 27,065,441 3,753,545 4,169,898(33,475,872) (5,932,813) (1,421,804) (12,890,194) (3,223,185) (4,594,509)

61,243,327 3,633,413 3,604,131 53,821,021 7,533,332 10,023,402

19.46 21.59 44.47 10.68 31.37 29.21

2,846,686 151,303 745,571 1,191,163 413,453 741,7651,245,790 15,807 142,445 2,344,064 509,724 520,880

(975,545) (35,989) (76,785) (1,529,516) (279,213) (106,239)

3,116,931 131,121 811,231 2,005,711 643,964 1,156,406

17.99 20.56 41.06 9.92 30.21 27.02

- - - - - - 492 - - - - 271

- - - - - -

492 - - - - 271

*20.47 - - - - *30.25

- - - - - - 518 - - - - 281

- - - - - -

518 - - - - 281

*19.46 - - - - *29.20

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - 13,273,164 - - - - - 3,120,235 - - - - - (3,353,763) - -

- - - 13,039,636 - -

- - - 10.70 - -

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European Global GlobalCurrencies High Global Convertible Convertible Short Maturity

Yield Bond Bond Bond Bond Euro Bond US BondFund Fund (Euro) Fund (USD) Fund Fund Fund

EUR USD EUR USD EUR USD





























3,727,800 4,456,073 8,693,860 2,361,090 13,697,817 915,853445,333 1,217,976 2,696,008 1,105,841 1,572,469 3,580,293

(2,960,908) (2,128,996) (6,642,217) (2,064,927) (4,270,363) (2,424,232)

1,212,225 3,545,053 4,747,651 1,402,004 10,999,923 2,071,914

11.31 28.50 28.58 29.35 17.55 21.19

2,934,163 9,681,095 12,720,696 1,708,599 24,516,815 10,188,0371,650,295 2,949,479 4,422,103 334,464 11,489,722 2,986,990(2,233,421) (4,600,350) (10,189,718) (971,156) (13,059,116) (3,640,418)

2,351,037 8,030,224 6,953,081 1,071,907 22,947,421 9,534,609

10.96 27.50 28.19 28.96 16.92 20.45

1,246,007 216,922 561,045 54,020 2,325,067 817,0161,178,502 146,660 377,268 17,270 1,205,229 360,214(1,009,328) (82,162) (521,801) (11,373) (1,191,190) (295,696)

1,415,181 281,420 416,512 59,917 2,339,106 881,534

10.20 25.31 27.37 28.13 15.83 18.92

- - - - - - - 349 - - - 473 - - - - - -

- 349 - - - 473

- *28.50 - - - *21.19

- - - - - - - 362 - - - 490 - - - - - -

- 362 - - - 490

- *27.51 - - - *20.45

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - 3,896,849 - - - - - 927,342 - - - - - (723,437)

- - - - - 4,100,754

- - - - - 20.50

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US Dollar Euro US Dollar Global Global Short Duration Liquidity Liquidity Diversified Diversified

Fund Fund Fund (Euro) Fund (USD) Fund

USD EUR USD EUR USD





























4,308,076 9,397,796 8,289,674 1,108,288 48,6761,010 11,258,241 1,125,520 833,390 238,831

(2,771,983) (9,785,627) (2,436,343) (110,781) (4,437)

1,537,103 10,870,410 6,978,851 1,830,897 283,070

10.36 11.68 11.80 28.41 31.47

760,076 16,748,422 2,729,117 3,435,708 242,555256,313 20,208,401 15,155,678 3,121,994 216,772(180,887) (18,142,878) (16,215,426) (640,928) (196,201)

835,502 18,813,945 1,669,369 5,916,774 263,126

10.23 11.53 11.50 27.86 30.88

170,399 11,471,579 1,219,176 421,242 78,14855,923 3,519,313 2,285,824 425,724 44,460

(111,712) (7,939,077) (2,634,165) (139,230) (17,217)

114,610 7,051,815 870,835 707,736 105,391

9.94 10.99 11.16 26.59 29.97

- 59,015 9,541,797 - - - 228,589 445,311 - - - (165,000) (5,669,128) - -

- 122,604 4,317,980 - -

- 1.00 1.00 - -

- 10 162,094,975 - - - - 88,803,851 - - - (1) (93,945,728) - -

- 9 156,953,098 - -

- 1.00 1.00 - -

- - 1,201,955 - - - - 335,138 - - - - (464,251) - -

- - 1,072,842 - -

- - 1.00 - -

- - - - - - - - - - - - - - -

- - - - -

- - - - -

- - - - - - - - - - - - - - -

- - - - -

- - - - -

- - - - - - - - - - - - - - -

- - - - -

- - - - -

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Emerging Emerging Asian Asian Europe and Markets European European

Equity Property Middle East Equity Equity PropertyFund Fund Equity Fund Fund Fund Fund

USD USD EUR USD EUR EUR USD

IncomeDividends (net of withholding taxes)Interest on bondsBank interestIncome from securities lending

Total income

ExpensesInvestment advisory feesCustodian feesAdministration fees and transfer agent feesProfessional feesTaxe d’abonnementPrinting and publication feesBank interestTransaction feesClass specific expenses- Class I- Class A- Class B- Class IX- Class AX- Class BX- Class MXTax charges (excluding Taxe d’abonnement)Other fees

Total expenses

Less: expenses fee waiver

Net investment income/(loss)

Net realized gain/(loss) on sales of investmentsNet realised gain/(loss) on financial futures contractsNet realized gain/(loss) on foreign exchange transactions

Net realized profit/(loss) for the period

Net change in unrealized appreciation/(depreciation) on investmentsNet change in unrealized appreciation/(depreciation) on financial futures contractsNet change in unrealized appreciation/(depreciation) on foreign exchange transactions

Net change in net assets as a result of operations

Dividend distribution

Proceeds received on subscription of sharesNet amount paid on redemption of shares

Net change in net assets as a result of capital transactions

Total increase/(decrease) in net assets

Net assets at beginning of periodTranslation difference

Net assets at end of period

+ Represents the combined totals of all Morgan Stanley SICAV Funds.Please refer to page 127 for Fund expense ratios for each class of each Fund.

5,644,862 3,400,924 1,843,335 6,964,202 4,530,642 6,622,564 119,781,952 - - - 46,547 - - 104,901,867

83,729 38,451 - 126,133 - 21,876 5,475,735 194,706 - - 136,180 316,094 263,715 2,834,769

5,923,297 3,439,375 1,843,335 7,273,062 4,846,736 6,908,155 232,994,323

1,945,079 1,112,166 869,315 3,151,493 1,467,559 2,127,177 75,029,903184,919 43,063 120,637 217,778 53,500 67,718 2,481,298185,663 132,254 118,837 240,282 158,675 201,938 7,558,751 65,878 41,248 26,657 81,417 49,307 61,966 2,610,78492,579 59,050 32,311 107,827 62,702 81,491 3,588,42072,996 61,274 43,413 77,757 56,004 63,609 2,714,465

- - 12,995 - 145 - 35,223157,731 26,056 25,215 240,781 31,901 52,641 1,205,296

81,063 41,813 7,805 55,584 10,751 45,916 1,867,189114,475 73,503 54,219 207,652 153,363 162,433 6,499,82195,853 28,053 129,216 123,796 140,485 148,411 4,929,039

- - 283 - - - 2,107 - - - - - - 34,785 - - - - - - 253 - - - - - - 332,189 - - - 237,423 - - 75,530

3,935 2,586 1,913 3,317 1,911 1,914 107,414

3,000,171 1,621,066 1,442,816 4,745,107 2,186,303 3,015,214 109,072,467

- - 42,283 20,711 - - 848,434

2,923,126 1,818,309 442,802 2,548,666 2,660,433 3,892,941 124,770,290

11,002,281 362,012 10,401,297 41,653,043 6,618,130 28,941,221 373,722,824- - - - - - (39,296,194)

(88,167) (32,424) 72,680 (566,655) 78,168 131,801 29,644,938

13,837,240 2,147,897 10,916,779 43,635,054 9,356,731 32,965,963 488,841,858

1,939,405 (3,588,517) 13,291,333 (26,881,961) 14,445,910 15,006,637 (64,352,769)

- - - - - - (49,085)

- - - 2,660,720 526,733 - (35,471,637)

15,776,645 (1,440,620) 24,208,112 19,413,813 24,329,374 47,972,600 388,968,367

- - - - - - (1,878,419)

92,966,227 197,339,509 159,262,401 127,656,366 39,387,030 255,581,840 7,517,621,514 (96,284,623) (43,344,254) (71,974,327) (173,956,629) (85,425,895) (260,980,867) (6,970,623,913)

(3,318,396) 153,995,255 87,288,074 (46,300,263) (46,038,865) (5,399,027) 546,997,601

12,458,249 152,554,635 111,496,186 (26,886,450) (21,709,491) 42,573,573 934,087,549

370,107,809 133,018,616 50,571,138 444,107,981 267,789,799 345,343,073 14,853,494,779 - - - - - - (799,183,322)

382,566,058 285,573,251 162,067,324 417,221,531 246,080,308 387,916,646 14,988,399,006

Statement of operations and changes in net assetsFor the six months ended 30 June 2005


funds +

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European Global JapaneseSmall Cap European Global Small Cap Global Equity

Value Value Equity Brands Value Value Equity GrowthFund Fund Fund Fund Fund Fund

EUR EUR USD USD USD JPY USD


Total income


Total expenses














882,957 7,277,606 22,767,975 2,213,347 17,580,551 102,352,192 119,781,952- - - - - - 104,901,867

1,896 20,156 871,487 70,319 585,125 - 5,475,735 - 396,912 - - 535,815 - 2,834,769

884,853 7,694,674 23,639,462 2,283,666 18,701,491 102,352,192 232,994,323

415,843 2,365,683 7,360,463 1,381,146 7,281,391 122,383,459 75,029,903 16,418 80,725 228,873 30,855 178,328 2,033,448 2,481,298 81,182 214,863 500,493 163,950 519,133 12,323,027 7,558,751 20,351 64,129 177,360 43,943 191,270 3,786,899 2,610,784 16,226 92,767 346,987 51,010 316,944 4,491,438 3,588,420 39,655 62,440 139,870 61,173 142,507 6,056,742 2,714,465

- - - - - 125,791 35,223 45,097 34,836 20,992 89,284 33,290 7,807,478 1,205,296

4,216 30,895 219,553 28,789 206,239 952,535 1,867,189 29,003 196,678 499,570 86,124 532,474 9,922,188 6,499,821 40,536 197,469 525,339 86,702 310,653 3,761,710 4,929,039

- - - - - 56 2,107 - - - - - 127 34,785 - - - - - - 253 - - - - - - 332,189 - - - - - - 75,530

4,391 1,912 9,100 2,494 2,494 266,490 107,414

712,918 3,342,397 10,028,600 2,025,470 9,714,723 173,911,388 109,072,467

61,200 - - 2,913 - 133,899 848,434

233,135 4,352,277 13,610,862 261,109 8,986,768 (71,425,297) 124,770,290

2,025,181 10,405,671 20,902,270 13,530,012 26,700,297 370,831,296 373,722,824 - - - - - - (39,296,194)

(32,161) 60,750 (15,063,573) (179,546) (70,766) (4,783,033) 29,644,938

2,226,155 14,818,698 19,449,559 13,611,575 35,616,299 294,622,966 488,841,858

3,828,716 24,513,773 (15,150,065) (10,076,674) (57,646,397) 1,127,318,640 (64,352,769)

- - - - - - (49,085)

- - 31,303,378 - - - (35,471,637)

6,054,871 39,332,471 35,602,872 3,534,901 (22,030,098) 1,421,941,606 388,968,367

- - - - - - (1,878,419)

53,068,005 79,024,842 1,031,817,183 52,933,253 171,415,580 17,579,384,475 7,517,621,514 (33,483,210) (111,319,141) (515,023,655) (67,922,460) (233,231,996) (8,583,561,921) (6,970,623,913)

19,584,795 (32,294,299) 516,793,528 (14,989,207) (61,816,416) 8,995,822,554 546,997,601

25,639,666 7,038,172 552,396,400 (11,454,306) (83,846,514) 10,417,764,160 934,087,549

32,990,630 376,673,582 1,065,326,635 202,040,612 1,328,480,292 10,828,630,932 14,853,494,779 - - - - - - (799,183,322)

58,630,296 383,711,754 1,617,723,035 190,586,306 1,244,633,778 21,246,395,092 14,988,399,006

Statement of operations and changes in net assets (continued)For the six months ended 30 June 2005


funds +

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Latin US USJapanese American US Equity US Small Cap

Value Equity Equity Equity Growth Property GrowthFund Fund Fund Fund Fund Fund

JPY USD USD USD USD USD USD


Total income


Total expenses














438,886,989 5,786,752 942,293 680,346 1,367,906 643,886 119,781,952 - - 129 - - - 104,901,867 - 97,051 88,014 59,272 50,811 78,429 5,475,735

5,660,785 56,815 - - 6,159 - 2,834,769

444,547,774 5,940,618 1,030,436 739,618 1,424,876 722,315 232,994,323

362,348,235 1,960,908 957,471 1,764,151 777,900 1,603,948 75,029,9037,874,672 89,631 13,292 22,271 11,092 17,316 2,481,298

32,443,566 178,669 167,884 176,013 96,549 131,231 7,558,751 9,636,496 60,617 39,036 55,313 33,896 46,409 2,610,784

14,755,409 82,039 38,849 64,070 31,225 52,094 3,588,4209,349,396 70,842 58,940 63,180 55,839 62,376 2,714,465

56,669 - - - - - 35,2235,380,506 36,920 10,071 9,409 9,333 11,793 1,205,296

5,518,558 90,842 243 22,055 16,380 14,186 1,867,18929,382,609 63,235 117,896 149,703 58,196 121,569 6,499,82129,878,785 108,446 11,667 142,883 66,676 99,731 4,929,039

56 - - - - - 2,107 125 - - - - - 34,785

- - - - - - 253 - - - - - - 332,189 - - - - (161,893) - 75,530

263,380 2,490 5,122 2,493 2,495 2,494 107,414

506,888,462 2,744,639 1,420,471 2,471,541 997,688 2,163,147 109,072,467

- - - - - - 848,434

(62,340,688) 3,195,979 (390,035) (1,731,923) 427,188 (1,440,832) 124,770,290

624,761,928 39,472,602 1,149,784 9,466,434 8,578,728 14,541,530 373,722,824- - - - - - (39,296,194)

(814,729) 144,604 24,603 7,012 63,749 6,297 29,644,938

561,606,511 42,813,185 784,352 7,741,523 9,069,665 13,106,995 488,841,858

476,981,790 (12,456,010) (2,346,951) (12,035,879) 3,951 (4,621,881) (64,352,769)

- - - - - - (49,085)

- - - - - - (35,471,637)

1,038,588,301 30,357,175 (1,562,599) (4,294,356) 9,073,616 8,485,114 388,968,367

- - - - - - (1,878,419)

22,410,446,836 134,033,039 79,385,589 69,692,968 97,833,951 78,364,451 7,517,621,514 (23,165,532,715) (148,682,245) (97,343,317) (124,576,128) (91,983,732) (90,291,256) (6,970,623,913)

(755,085,879) (14,649,206) (17,957,728) (54,883,160) 5,850,219 (11,926,805) 546,997,601

283,502,422 15,707,969 (19,520,327) (59,177,516) 14,923,835 (3,441,691) 934,087,549

57,324,715,668 329,944,515 186,221,512 340,778,518 154,752,645 245,001,503 14,853,494,779 - - - - - - (799,183,322)

57,608,218,090 345,652,484 166,701,185 281,601,002 169,676,480 241,559,812 14,988,399,006


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Emerging Euro Euro US World Markets Euro Corporate Strategic

Value Equity Equity Debt Bond Bond BondFund Fund Fund Fund Fund Fund

USD USD USD EUR EUR EUR USD


Total income


Total expenses














15,365,264 1,557,113 - - - - 119,781,952 - - 7,315,820 17,345,181 8,247,333 9,955,908 104,901,867

825,452 15,014 106,189 291,626 62,902 110,179 5,475,735 137,338 131,856 136,872 36,373 - 28,675 2,834,769

16,328,054 1,703,983 7,558,881 17,673,180 8,310,235 10,094,762 232,994,323

10,248,084 897,357 1,323,597 2,778,759 1,202,485 1,604,045 75,029,903120,697 22,050 29,224 119,021 47,692 69,823 2,481,298683,270 108,733 129,038 319,724 164,907 212,657 7,558,751 238,239 44,071 41,707 122,928 58,712 75,040 2,610,784415,179 34,435 51,918 216,734 91,179 123,732 3,588,420177,728 59,846 58,859 97,219 61,122 71,968 2,714,465

- - - - - - 35,22318,558 54,785 8,572 4,623 4,535 5,969 1,205,296

166,835 17,952 14,129 85,471 44,860 74,533 1,867,189903,924 88,979 102,268 357,329 165,258 203,231 6,499,821288,868 16,505 172,625 105,660 98,867 145,042 4,929,039

(1) - - - - (1) 2,107 (1) - - - - (1) 34,785

- - - - - - 253 - - - 177,074 - - 332,189 - - - - - - 75,530

2,497 2,521 2,492 1,913 1,910 1,916 107,414

13,263,877 1,347,234 1,934,429 4,386,455 1,941,527 2,587,954 109,072,467

- - - - - - 848,434

3,064,177 356,749 5,624,452 13,286,725 6,368,708 7,506,808 124,770,290

55,700,605 15,011,123 2,146,435 6,584,983 1,005,398 2,555,023 373,722,824- - 88,898 - (22,542,941) (7,913,677) (39,296,194)

(51,371) (460,878) 174,627 2,279 22,016,633 7,779,448 29,644,938

58,713,411 14,906,994 8,034,412 19,873,987 6,847,798 9,927,602 488,841,858

(65,415,569) (25,105,169) 2,272,253 15,567,937 7,527,739 12,608,465 (64,352,769)

- - (1,954) - 105,121 48,673 (49,085)

- 1,107,610 - - (3,417,365) (1,369,374) (35,471,637)

(6,702,158) (9,090,565) 10,304,711 35,441,924 11,063,293 21,215,366 388,968,367

- - - - - - (1,878,419)

1,002,315,300 26,177,504 115,092,754 411,987,126 197,145,785 301,840,607 7,517,621,514 (750,936,217) (196,004,812) (84,107,917) (266,608,446) (131,314,862) (184,223,108) (6,970,623,913)

251,379,083 (169,827,308) 30,984,837 145,378,680 65,830,923 117,617,499 546,997,601

244,676,925 (178,917,873) 41,289,548 180,820,604 76,894,216 138,832,865 934,087,549

1,477,036,685 263,273,688 189,303,432 757,141,610 316,826,827 458,580,615 14,853,494,779 - - - - - - (799,183,322)

1,721,713,610 84,355,815 230,592,980 937,962,214 393,721,043 597,413,480 14,988,399,006


funds +

952347-1-007 x-cat 8/22/05 17:52 Page 112




European Global GlobalCurrencies High Global Convertible Convertible Short Maturity

Yield Bond Bond Bond Bond Euro Bond US BondFund Fund (Euro) Fund (USD) Fund Fund Fund

EUR USD EUR USD EUR USD USD


Total income


Total expenses














14,226 - 678,556 138,511 - - 119,781,952 2,528,106 6,107,579 4,660,937 1,005,459 13,064,297 7,511,052 104,901,867

3,902 177,166 - 4,562 185,098 363,200 5,475,735 26,528 15,414 - - 44,454 - 2,834,769

2,572,762 6,300,159 5,339,493 1,148,532 13,293,849 7,874,252 232,994,323

239,153 1,301,286 2,362,468 460,374 2,267,860 1,162,488 75,029,9039,061 53,487 68,529 15,042 91,255 26,791 2,481,298

67,025 191,653 258,249 70,857 256,305 168,259 7,558,751 23,307 69,977 97,413 34,393 103,510 61,361 2,610,78415,191 92,473 143,662 30,687 164,275 85,750 3,588,42040,968 75,456 84,908 55,438 84,137 70,106 2,714,465

- - 12,926 - - - 35,2232,582 5,544 15,292 9,741 3,899 2,266 1,205,296

9,869 50,802 95,064 31,552 85,825 14,016 1,867,18922,022 186,029 237,792 32,418 309,407 156,291 6,499,82171,271 33,582 73,850 8,761 193,970 88,857 4,929,039

- - - - - - 2,107 - - - - - - 34,785 - - - - - - 253 - - - - - 104,596 332,189 - - - - - - 75,530

1,914 2,496 1,911 2,523 1,908 2,580 107,414

502,363 2,062,785 3,452,064 751,786 3,562,351 1,943,361 109,072,467

21,482 - - - - - 848,434

2,091,881 4,237,374 1,887,429 396,746 9,731,498 5,930,891 124,770,290

104,552 14,325,208 (3,854,838) 1,586,830 (1,435,793) 1,224,981 373,722,824(61,774) (382,214) - - - 129,246 (39,296,194)

1,440,438 (2,149,938) 8,213,370 (2,247,759) (4,795) (63,198) 29,644,938

3,575,097 16,030,430 6,245,961 (264,183) 8,290,910 7,221,920 488,841,858

(917,800) (36,338,519) 33,082,441 (7,984,685) 2,318,271 2,016,933 (64,352,769)

324 77,187 - - - (284,274) (49,085)

(3,188,348) 614,075 (50,259,169) 6,452,019 - - (35,471,637)

(530,727) (19,616,827) (10,930,767) (1,796,849) 10,609,181 8,954,579 388,968,367

- - - - - - (1,878,419)

35,336,394 122,814,312 213,975,377 42,826,708 238,379,202 159,780,998 7,517,621,514 (68,021,753) (193,789,895) (492,617,481) (88,934,033) (311,459,122) (144,267,861) (6,970,623,913)

(32,685,359) (70,975,583) (278,642,104) (46,107,325) (73,079,920) 15,513,137 546,997,601

(33,216,086) (90,592,410) (289,572,871) (47,904,174) (62,470,739) 24,467,716 934,087,549

87,120,141 419,607,036 632,665,989 121,777,026 680,730,659 315,153,343 14,853,494,779 - - - - - - (799,183,322)

53,904,055 329,014,626 343,093,118 73,872,852 618,259,920 339,621,059 14,988,399,006


funds +

952347-1-007 x-cat 8/22/05 17:52 Page 113




US Dollar Euro US Dollar Global Global Short Duration Liquidity Liquidity Diversified Diversified

Fund Fund Fund (Euro) Fund (USD) Fund

USD EUR USD EUR USD USD


Total income


Total expenses














- - - 1,115,393 105,680 119,781,952 673,158 4,327,602 3,439,862 1,097,798 106,989 104,901,867

3,707 368,306 460,458 182 878 5,475,735 - - - - - 2,834,769

676,865 4,695,908 3,900,320 2,213,373 213,547 232,994,323

77,445 873,941 616,062 877,274 73,921 75,029,9032,797 54,075 21,265 23,732 2,317 2,481,298

46,674 163,291 262,759 69,775 43,109 7,558,751 28,100 78,715 61,468 34,759 18,645 2,610,7848,854 22,073 13,308 48,072 4,387 3,588,420

46,386 61,721 63,386 48,297 47,080 2,714,465- - - - - 35,223

773 2,389 843 14,632 21,050 1,205,296

10,399 32,723 22,778 15,579 2,372 1,867,1896,017 50,746 7,878 93,262 5,634 6,499,8216,357 424,985 3,405 79,990 15,490 4,929,039

- 46 1,688 - - 2,107 - - 34,785 - - 34,785 - - 253 - - 253 - - - - - 332,189 - - - - - 75,530

1,091 1,791 4,033 4,384 5,004 107,414

234,893 1,766,496 1,113,911 1,309,756 239,009 109,072,467

140,306 198,560 176,197 - 91,218 848,434

582,278 3,127,972 2,962,606 903,617 65,756 124,770,290

(444,090) 118 419,257 3,946,070 506,023 373,722,82493,165 - - - - (39,296,194)

- - - (720,103) 74,925 29,644,938

231,353 3,128,090 3,381,863 4,129,584 646,704 488,841,858

59,390 - - 10,262,535 (897,652) (64,352,769)

(38,132) - - - - (49,085)

- - - (2,861,767) 240,269 (35,471,637)

252,611 3,128,090 3,381,863 11,530,352 (10,679) 388,968,367

- (1,570) (1,876,401) - - (1,878,419)

3,171,114 401,796,524 300,213,805 117,777,399 15,485,290 7,517,621,514 (31,540,353) (409,520,315) (342,191,757) (23,919,479) (6,646,867) (6,970,623,913)

(28,369,239) (7,723,791) (41,977,952) 93,857,920 8,838,423 546,997,601

(28,116,628) (4,597,271) (40,472,490) 105,388,272 8,827,744 934,087,549

53,732,071 426,025,226 314,068,529 130,287,733 11,363,975 14,853,494,779 - - - - - (799,183,322)

25,615,443 421,427,955 273,596,039 235,676,005 20,191,719 14,988,399,006


funds +

952347-1-007 x-cat 8/22/05 17:52 Page 114



19.68 8.38 24.00 15.78 6.31 16.17 25.61 22.96 11.15 30.44 19.48 6.60 21.98 32.25 24.02 10.97 39.02 20.53 7.27 25.42 36.73

18.94 8.07 23.57 15.17 6.17 15.59 25.31 21.93 10.65 29.71 18.62 6.42 21.04 31.65 22.86 10.45 37.97 19.57 7.05 24.25 35.91

17.72 7.91 23.31 14.42 5.96 14.79 24.76 20.32 10.38 29.24 17.55 6.13 19.76 30.65 21.08 10.13 37.26 18.37 6.70 22.66 34.61

- - - - - - - - - - - - - - - - *39.01 *20.53 - *25.42 *36.73

- - - - - - - - - - - - - - - - *37.97 *19.57 - *24.25 *35.91

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

281,339,773 6,634,396 18,527,224 403,760,221 223,588,535 116,102,002 25,476,737 370,107,809 133,018,616 50,571,138 444,107,981 267,789,799 345,343,073 32,990,630 382,566,058 285,573,251 162,067,324 417,221,531 246,080,308 387,916,646 58,630,296

Statement of share and net assets statisticsAs at 30 June 2005

Emerging Emerging EuropeanAsian Asian Europe and Markets European European Small Cap

Equity Property Middle East Equity Equity Property ValueFund Fund Equity Fund Fund Fund Fund Fund

USD USD EUR USD EUR EUR EUR

Net asset value per share class I31 December 200331 December 200430 June 2005

Net asset value per share class A31 December 200331 December 200430 June 2005

Net asset value per share class B31 December 200331 December 200430 June 2005

Net asset value per share class IX31 December 200331 December 200430 June 2005

Net asset value per share class AX31 December 200331 December 200430 June 2005

Net asset value per share class BX31 December 200331 December 200430 June 2005

Net asset value per share class M31 December 200331 December 200430 June 2005

Net asset value per share class MX31 December 200331 December 200430 June 2005

Net asset value per share class S31 December 200331 December 200430 June 2005

Net assets31 December 200331 December 200430 June 2005


952347-1-007 x-cat 8/22/05 17:52 Page 115



Statement of share and net assets statistics (continued)As at 30 June 2005

Global JapaneseEuropean Global Small Cap Global Equity Japanese Latin

Value Equity Brands Value Value Equity Growth Value Equity American EquityFund Fund Fund Fund Fund Fund Fund

EUR USD USD USD JPY JPY USD












23.29 37.59 23.58 35.53 674.27 841.19 17.40 25.78 42.64 29.48 40.55 773.02 936.02 25.35 28.67 44.16 30.24 40.01 844.08 959.53 27.89

22.37 36.93 22.69 34.16 660.92 808.76 16.73 24.58 41.60 28.18 38.71 752.29 893.50 24.22 27.25 42.93 28.79 38.06 818.51 912.68 26.55

20.98 35.79 21.67 32.01 646.06 750.76 15.62 22.83 39.94 26.64 35.91 728.89 821.17 22.39 25.18 41.01 27.09 35.13 789.28 834.65 24.42

- - - - - - - - - - - - - - - - - - *844.08 *959.54 -

- - - - - - - - - - - - - - - - - - *818.52 *912.69 -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

509,968,082 560,951,061 145,691,128 1,126,420,955 4,522,662,812 39,481,035,648 200,538,655 376,673,582 1,065,326,635 202,040,612 1,328,480,292 10,828,630,932 57,324,715,668 329,944,515 383,711,754 1,617,723,035 190,586,306 1,244,633,778 21,246,395,092 57,608,218,090 345,652,484

952347-1-007 x-cat 8/22/05 17:52 Page 116




US US Emerging US Equity US Small Cap US World Markets

Equity Growth Property Growth Value Equity Equity DebtFund Fund Fund Fund Fund Fund Fund

USD USD USD USD USD USD USD












23.43 27.72 27.12 33.76 17.56 20.31 40.37 25.18 29.79 36.45 39.88 20.58 22.79 44.22 25.02 29.78 39.08 41.74 20.47 22.16 46.74

23.21 26.66 26.19 32.47 16.89 19.92 38.74 24.85 28.44 34.94 38.08 19.65 22.24 42.19 24.62 28.31 37.33 39.71 19.46 21.59 44.47

22.72 25.04 24.49 30.41 15.85 19.27 36.31 24.09 26.45 32.35 35.30 18.25 21.29 39.14 23.75 26.20 34.39 36.63 17.99 20.56 41.06

- - - - - - - - - - - - - - - - *39.09 - *20.47 - -

- - - - - - - - - - - - - - - - *37.34 - *19.46 - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

54,528,276 693,983,138 80,450,421 201,342,256 318,786,259 296,590,165 250,992,165 186,221,512 340,778,518 154,752,645 245,001,503 1,477,036,685 263,273,688 189,303,432 166,701,185 281,601,002 169,676,480 241,559,812 1,721,713,610 84,355,815 230,592,980

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Euro Euro European Global GlobalEuro Corporate Strategic Currencies Global Convertible Convertible Bond Bond Bond High Yield Bond Bond BondFund Fund Fund Bond Fund Fund (Euro) Fund (USD) Fund

EUR EUR EUR EUR USD EUR USD












9.94 28.81 27.14 10.08 27.32 27.52 28.32 10.61 30.92 29.00 11.30 29.95 29.01 29.68 11.06 31.91 30.25 11.31 28.50 28.58 29.35

9.66 28.50 26.36 9.83 26.53 27.33 28.15 10.26 30.46 28.05 10.97 28.96 28.68 29.36 10.68 31.37 29.21 10.96 27.50 28.19 28.96

9.10 27.86 24.75 9.29 24.78 26.94 27.75 9.58 29.48 26.07 10.26 26.78 27.99 28.65 9.92 30.21 27.02 10.20 25.31 27.37 28.13

- - - - - - - - - - - - - - - - *30.25 - *28.50 - -

- - - - - - - - - - - - - - - - *29.20 - *27.51 - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - 10.27 - - - - - - 10.70 - - - - - -

708,179,106 237,150,177 210,629,408 81,130,049 313,574,180 209,214,455 100,933,849 757,141,610 316,826,827 458,580,615 87,120,141 419,607,036 632,665,989 121,777,026 937,962,214 393,721,043 597,413,480 53,904,055 329,014,626 343,093,118 73,872,852

952347-1-007 x-cat 8/22/05 17:52 Page 118




Short Maturity US Dollar Euro US Dollar Global Global Euro Bond US Bond Short Duration Liquidity Liquidity Diversified Diversified

Fund Fund Fund Fund Fund (Euro) Fund (USD) Fund

EUR USD USD EUR USD EUR USD












16.76 19.82 10.17 11.38 11.55 24.96 28.84 17.24 20.64 10.28 11.58 11.66 26.67 31.37 17.55 21.19 10.36 11.68 11.80 28.41 31.47

16.26 19.25 10.11 11.26 11.32 24.68 28.54 16.65 19.95 10.18 11.44 11.38 26.23 30.86 16.92 20.45 10.23 11.53 11.50 27.86 30.88

15.44 18.07 9.97 10.86 10.98 23.91 28.12 15.66 18.55 9.94 10.94 11.05 25.16 30.10 15.83 18.92 9.94 10.99 11.16 26.59 29.97

- - - 1.00 1.00 - - - - - 1.00 1.00 - - - *21.19 - 1.00 1.00 - -

- - - 1.00 1.00 - - - - - 1.00 1.00 - - - *20.45 - 1.00 1.00 - -

- - - - 1.00 - - - - - - 1.00 - - - - - - 1.00 - -

- - - 11.44 - - - - - - - - - - - - - - - - -

- - - - 1.00 - - - - - - - - - - - - - - - -

- - - - - - - - 19.97 - - - - - - 20.50 - - - - -

692,302,357 347,242,863 150,107,241 695,040,192 435,322,738 52,925,352 9,836,107 680,730,659 315,153,343 53,732,071 426,025,226 314,068,529 130,287,733 11,363,975 618,259,920 339,621,059 25,615,443 421,427,955 273,596,039 235,676,005 20,191,719

952347-1-007 x-cat 8/22/05 17:52 Page 119


Notes to the financial statementsAs at 30 June 2005

1 THE COMPANY

The Company was incorporated on 21 November 1988 underthe laws of the Grand Duchy of Luxembourg as a “Sociétéd’Investissement à Capital Variable” (“SICAV”) and is registeredas an undertaking for collective investment pursuant to Part 1of the Law of 30 March 1988. The Company is anUndertaking for Collective Investment in Transferable Securities(“UCITS”) for the purpose of the Council DirectiveEEC/85/611 (“UCITS Directive”).

The exclusive purpose of the Company is to invest the fundsavailable to it in transferable securities and other assets permittedby law, with the purpose of spreading investment risks andaffording its shareholders the results of the management of itsassets. The Company is presently structured to provide bothinstitutional and individual investors with a variety of equity,bond, liquidity and asset allocation Funds. At the date of thisreport thirty-five Funds are open for subscription.

Fund Date of launch

Asian Equity Fund 8 October 1991Asian Property Fund 1 July 1997Emerging Europe and Middle East Equity Fund 16 October 2000Emerging Markets Equity Fund 27 July 1993European Equity Fund 3 April 2000European Property Fund 1 July 1997European Small Cap Value Fund 12 November 2001European Value Equity Fund 5 March 1991Global Brands Fund 30 October 2000Global Small Cap Value Fund 14 December 1993Global Value Equity Fund 7 November 1989Japanese Equity Growth Fund 3 July 2000Japanese Value Equity Fund 25 May 1993Latin American Equity Fund 2 August 1994US Equity Fund 3 December 2001US Equity Growth Fund 25 August 1992US Property Fund 9 January 1996US Small Cap Growth Fund 27 August 1991US Value Equity Fund 17 May 1994World Equity Fund 31 July 2000Emerging Markets Debt Fund 11 April 1995Euro Bond Fund 15 September 1992Euro Corporate Bond Fund 3 September 2001Euro Strategic Bond Fund 25 February 1991European Currencies High Yield Bond Fund 27 May 1997Global Bond Fund 7 November 1989Global Convertible Bond (Euro) Fund 16 July 2002Global Convertible Bond (USD) Fund 16 July 2002Short Maturity Euro Bond Fund 2 August 1994US Bond Fund 25 August 1992US Dollar Short Duration Fund 24 July 2002Euro Liquidity Fund 31 January 2000US Dollar Liquidity Fund 1 April 1998Global Diversified (Euro) Fund 12 December 2001Global Diversified (USD) Fund 12 December 2001

Each Class of Shares within each Fund has a different feestructure but participates in the same pool of assets within agiven Fund. For the “IX”, “AX” and “BX” Classes of Shares ofthe Bond Funds, Equity Funds and Asset Allocation Funds, theCompany intends to declare dividends which will be equal to atleast 85% of the net investment income attributable to suchClasses. For the “IX”, “AX” and “BX” Classes of Shares of theLiquidity Funds, the Company intends to declare dividendswhich will be equal to the net investment income attributable to

such Classes and realized capital gains, reduced by realized losses,if any attributable to such Classes. Such dividends, if any will bedeclared on each Dealing Day in the case of the Liquidity Fundsand on the last Dealing Day of June and December in the caseof the Bond Funds, Equity Funds and Asset Allocation Funds.

The following significant changes were made in the six monthsto 30 June 2005:

• On 1 January 2005, Morgan Stanley Investment ManagementLimited’s appointment as Sub-Advisor to the Morgan StanleySICAV European Equity Fund and Morgan Stanley SICAVWorld Equity Fund was terminated, and management of thosefunds reverted to Morgan Stanley Investment Management, Inc.

• With effect from 17 May 2005 a redemption fee of 2% ofredemption proceeds may be applied by the Company wherethe Directors, in their discretion, determine that the Shareholderhas engaged in trading practices which adversely affect theinterests of the Company’s shareholders. The redemption fee isretained by the Company for the benefit of continuingShareholders of the relevant Fund and in particular is intendedto defray the costs associated with the sale of portfoliosecurities to satisfy redemption and conversion requests,thereby reducing the possible impact of such costs.

• With effect from 17 May 2005, to the extent that theDirectors consider that it is in the best interests ofShareholders, taking into account factors including theprevailing market conditions, the level of subscriptions andredemptions in a particular Fund and the size of the Fund, theNet Asset Value of a Fund may be adjusted to reflect theestimated dealing spreads, costs and charges to be incurred bythe Fund in liquidating or purchasing investments to satisfythe net transactions on a particular Dealing Day. The adjustmentshall not exceed 1% of the Net Asset Value of the relevant Fundon the relevant Dealing Day.

• On 1 June 2005, Share Classes “AX” and “IX” of the GlobalBond Fund, the Euro Strategic Bond Fund, the US PropertyFund, the US Bond Fund, the Japanese Value Equity Fund, the US Value Equity Fund, the Emerging Markets Equity Fund,the European Property Fund, the Japanese Equity GrowthFund, the Emerging Europe and Middle East Equity Fund and the European Small Cap Value Fund opened for subscription.

2 SIGNIFICANT ACCOUNTING POLICIES

The financial statements are presented in accordance withgenerally accepted accounting principles in Luxembourg.

a) Valuation of securitiesSecurities listed on a recognised stock exchange or dealt onany other regulated market are valued at their last availableprices, or, in the event that there should be several suchmarkets, on the basis of their last available prices on themain market for the relevant security.

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Notes to the financial statements (continued)As at 30 June 2005


In the event that the last available price does not trulyreflect the fair market value of the relevant securities, thevalue of such securities will be based on the reasonablyforeseeable sales price determined prudently and in goodfaith pursuant to procedures established by the Directors.

Securities not listed or traded on a stock exchange or notdealt on another regulated market are valued on the basis ofthe reasonably foreseeable sales price determined prudentlyand in good faith pursuant to procedures established by theDirectors.

Securities with a known short-term maturity date, arevalued using an amortised cost method. This involvesvaluing an investment at its cost and thereafter assuminga constant amortisation to maturity of any discount orpremium, regardless of the impact of fluctuating interestrates on the market value of the investments.

Events may occur between the determination of aninvestment’s last available price and the determination ofthe Fund’s Net asset Value per Share at the valuation pointthat may, in the opinion of the Directors, mean that thelast available price does not reflect the fair market value ofthe investment. In such circumstances the price of suchinvestment shall be adjusted in accordance with theprocedures adopted from time to time by the Directors intheir discretion.

If since the time of determination of the net asset value therehas been a material change in the quotations in the marketson which a substantial portion of the investmentsattributable to the relevant class of shares are dealt in orquoted, the Company may, in order to safeguard the interestsof the shareholders and the Company, cancel the firstvaluation and carry out further valuations as appropriate.

b) Valuation of forward foreign currency exchange andfutures contractsForward and futures contracts as disclosed on pages 95 to 97,which are traded on exchanges or on other organised marketsare valued at the last available prices of these contracts onexchanges and organised markets on which the particularfutures or forwards contracts are traded by the Company.

The liquidating value of futures or options contracts nottraded on exchanges or on other organised markets shallmean their net liquidating value determined, pursuant to thepolicies established by the board of directors, on a basisconsistently applied for each different variety of contracts.

c) Income and securities transactionsDividend income is recorded on the ex. dividend date.Interest income is accrued daily. Discounts are accreted asadjustments to interest income. Income from securitieslending is recorded on a cash receipts basis.

Securities transactions are accounted for on the date thesecurities are purchased or sold. Realised gains or losses onthe sale of securities are determined on the basis of theaverage cost method.

d) Translation of foreign currenciesTransactions in foreign currencies are translated into thecurrency of each Fund at the exchange rate ruling at thedate of the transactions. Assets and liabilities denominatedin foreign currencies are translated into the currency ofeach Fund at the exchange rates ruling at the date of thestatement of assets and liabilities.

The combined statement of assets and liabilities ispresented in US dollars at the exchange rates ruling at thedate of the statement of assets and liabilities, while thecombined statement of operations and changes in net assetsis presented in US dollars at the average exchange ratesruling during the six months.

e) Forward settlement transactionsThe Company may, to a limited extent, enter into forwardsettlement transactions for the purpose of efficient portfoliomanagement or hedging with broker-dealers who makemarkets in these transactions and who are first classfinancial institutions that specialise in these types oftransactions and are participants in the over-the-countermarkets. Such transactions consist of the purchase or sale ofdebt securities at their current price with delivery andsettlement at a specified future date (which could be in twoto twelve months time).

As settlement date approaches for such transactions, theCompany may agree with the relevant broker-dealer eitherto buy or sell the debt securities back to such broker-dealeror to roll the trade for a further period with any gains orlosses realised on the trade paid to, or received from, thebroker-dealer. Purchase transactions are, however, enteredinto by the Company with a view to acquiring the relevantdebt securities.

The Company may pay customary fees included in theprice of the debt securities to the relevant broker-dealer inorder to finance the cost to such broker-dealer of thedelayed settlement.

As of 30 June 2005, there were no forward settlementtransaction positions.

f) Valuation of repurchase agreementsUnder a repurchase agreement, the Company purchasessecurities and agrees to re-sell them at a mutually agreedupon date and price. Repurchase agreements are valued atcost with interest accrued from the date of purchase.

952347-1-007 x-cat 8/22/05 17:52 Page 121

3 SECURITIES LENDING

As of 30 June 2005, the Company loaned securities having a value of USD 1,577,283,177 and received collateral with amarket value at 30 June 2005 of USD 1,655,585,367.

4 RELATED PARTY TRANSACTIONS

Under the terms of an investment advisory agreement, MorganStanley Investment Management, Inc. has been appointedInvestment Adviser with responsibility for advising the Companywithin the scope of the day-to-day management of the variousFunds. The Investment Adviser is entitled to receive from theCompany a fee payable monthly in arrears, and calculated on thebasis of the average daily net assets (before deduction of the fee)of each Fund attributable to each Class of Shares.

All expenses are paid directly by the Company and fees paid tothe Investment Adviser are at the following annual rates:

Class I, IX, M, Class A, B,Fund name MX and S(2) AX and BX(1)

Asian Equity Fund 0.75 1.40Asian Property Fund 0.75 1.40Emerging Europe and Middle East Equity Fund(5) 1.10 1.60Emerging Markets Equity Fund(5) 1.10 1.60European Equity Fund 0.70 1.20European Property Fund(5) 0.75 1.40European Small Cap Value Fund(5) 0.95 1.60European Value Equity Fund 0.75 1.40Global Brands Fund 0.75 1.40Global Small Cap Value Fund 0.95 1.60Global Value Equity Fund 0.75 1.40Japanese Equity Growth Fund(5) 0.95 1.60Japanese Value Equity Fund(5) 0.75 1.40Latin American Equity Fund 1.00 1.60US Equity Fund 0.70 1.20US Equity Growth Fund 0.70 1.40US Property Fund(5) 0.75 1.40US Small Cap Growth Fund 0.95 1.60US Value Equity Fund(5) 0.70 1.40World Equity Fund 0.75 1.20Emerging Markets Debt Fund 0.90 1.40Euro Bond Fund(2) 0.45 0.80Euro Corporate Bond Fund 0.45 0.80Euro Strategic Bond Fund(5) 0.45 0.80European Currencies High Yield Bond Fund 0.50 0.85Global Bond Fund(5) 0.45 0.80Global Convertible Bond (Euro) Fund 0.60 1.00Global Convertible Bond (USD) Fund 0.60 1.00Short Maturity Euro Bond Fund 0.45 0.80US Bond Fund(2)(5) 0.45 0.80US Dollar Short Duration Fund 0.35 0.70Euro Liquidity Fund(1)(3)(5) 0.20 0.35US Dollar Liquidity Fund(1)(4)(5) 0.20 0.60Global Diversified (Euro) Fund 0.60 1.10Global Diversified (USD) Fund 0.60 1.10

(1) Only the US Dollar Liquidity Fund and the Euro Liquidity Fund issue Class BX Shares at present. (2) Only the US Bond Fund and the Euro Bond Fund issue Class S Shares at present.(3) The investment advisory fee for Class A, AX, B and BX Shares increased from 0.35 to 0.50% on

1 January 2005.(4) The investment advisory fee for Class A, AX, B and BX Shares decreased from 0.60% to 0.50%

on 1 January 2005.(5) Only these funds issue Class AX and IX at present.

In the case of any individual Fund, the Investment Adviser maychoose to waive all of its fee or any portion thereof at itsabsolute discretion for an indefinite period, in order to reduce

the impact such fee may have on the performance of the Fundin instances where the Fund’s net assets are of insufficient size.

The Funds are subject to a monthly shareholder service fee ata maximum annual rate of 0.25% of the Funds’ aggregateaverage daily net asset value attributable to all Classes of Sharesof the Funds. For the foreseeable future, the Company hasreduced the fees for shareholder service so that the EquityFunds, Bond Funds and Asset Allocation Funds are subject toa monthly shareholder service fee at the annual rate of 0.08%of the Funds’ aggregate average daily net asset value attributableto Classes I and IX Shares and at the annual rate of 0.15% ofthe Funds’ aggregate average daily net asset value attributable toClasses A and AX Shares and Classes B and BX Shares. The Company has similarly reduced the fees for shareholderservice so that the Liquidity Funds will be subject to a monthlyshareholder service fee at the annual rate of 0.05% of suchFunds’ aggregate average daily net asset value attributable to therelevant Class of Shares. Class S shares are subject to a monthlyshareholder service fee at the annual rate of 0.25% of theFunds’ aggregate average daily net asset value attributable toClass S shares.

The shareholder service fee is paid to Morgan StanleyInvestment Management Limited (the “Distributor”) ascompensation for providing certain services to shareholders.

The Distributor is also paid a distribution fee for the EquityFunds, Bond Funds and Asset Allocation Funds, accrued dailyand paid monthly, at the annual rate of 1.00% of the averagedaily net asset value of Classes B and BX Shares as compensationfor providing distribution-related services to the Funds withrespect to such Shares.

The Liquidity Funds will pay the Distributor a distribution fee,accrued daily and paid monthly, at the annual rate of 0.75% ofthe average daily net asset value for Classes B and BX Shares.

a) Morgan Stanley Investment Management Inc. and the sub-advisers for the Morgan Stanley SICAV have enteredinto the following types of transactions in which a connectedperson had a material interest:

i) The transaction is in relation to an investment in respectof which an affiliated firm benefited from a commission,fee, mark up or mark down; or

ii) The transaction is in relation to a placing and/or a newissue in which the affiliated company was a member ofthe underwriting syndicate.

All the transactions executed on behalf of the Morgan StanleySICAV were entered into in the ordinary course of businessand on normal commercial terms.

The Company has entered into a securities lending contractwith Morgan Stanley & Co. International Limited, MorganStanley Trading GmbH & Co KG, Morgan Stanley Securities



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Limited, Morgan Stanley & Co Incorporated and MSDWEquity Finance Service I (Cayman) Limited which is undernormal commercial terms. The arrangement is exclusive inrelation to certain securities.

5 TAXATION

Under current law and practice, the Company is not liable toany Luxembourg income tax, or any Luxembourg capital gainstax on the realised capital appreciation of the assets of theCompany nor are dividends paid by the Company liable to anyLuxembourg withholding tax. The Company is, however, liableto annual tax in Luxembourg calculated at the rate of 0.05% ofthe net asset value of all Funds (except the Liquidity Funds forwhich the rate is 0.01% of the net asset value of the LiquidityFunds). This tax is payable quarterly on the basis of the netassets of the relevant Funds, calculated at the end of the quarterto which the tax relates. No stamp or other tax will be payablein Luxembourg in connection with the issue of Shares of theCompany, except a once and for all tax of Euro 1,239.47 whichwas paid upon incorporation.

Dividends, interest and capital gains on securities held by theCompany may be subject to non-recoverable withholding taxor capital gains tax in the country of origin.

6 RATES OF EXCHANGE

The rates of exchange used for translation into U.S. dollars ofassets and liabilities, including securities and foreign currencyholdings, as of 30 June 2005 were:

Currency

AUD 1.316 = $1.00 BRL 2.356 = $1.00 CAD 1.234 = $1.00 CHF 1.285 = $1.00 CZK 24.925 = $1.00 DKK 6.180 = $1.00 EGP 5.787 = $1.00 EUR 0.830 = $1.00 GBP 0.558 = $1.00 HKD 7.776 = $1.00 HUF 207.500 = $1.00 IDR 10,000.000 = $1.00 ILS 4.496 = $1.00 INR 43.478 = $1.00 JOD 0.709 = $1.00 JPY 111.111 = $1.00 KRW 1,000.000 = $1.00 LBP 1,506.500 = $1.00 MAD 9.091 = $1.00 MXN 10.741 = $1.00 MYR 3.799 = $1.00 NOK 6.562 = $1.00 NZD 1.441 = $1.00 OMR 0.385 = $1.00 PLN 3.356 = $1.00 SEK 7.819 = $1.00 SGD 1.685 = $1.00 THB 41.322 = $1.00 TND 1.328 = $1.00 TRL 1.340 = $1.00 TWD 31.646 = $1.00 ZAR 6.667 = $1.00

7 SOFT COMMISSIONS ARRANGEMENTS

During the six months, Morgan Stanley InvestmentManagement Inc. and the sub-advisers for the Morgan StanleySICAV entered into soft commission arrangements withbrokers in respect of which certain goods and services used tosupport the investment decision making process were received.Such goods and services included data and quotation services,specialist industry, company and consumer research, portfolioand market analysis, performance measurement services andcomputer hardware and software used for the delivery of suchservices.

8 STATEMENTS OF PORTFOLIO CHANGES

A statement giving the changes in the portfolio of investmentsfor the six months ended 30 June 2005 is available toshareholders, free of charge, on request from the Company’sregistered office, and also from the Paying Agents in countrieswhere the company is registered to sell its Shares.

Please see list of Paying Agents on page 125.

9 OVERDRAFT FACILITY

The Fund has access to an overdraft facility (the “Facility”)established with J.P. Morgan Bank Luxembourg S.A. The Facility is intended to provide if necessary for short-term/temporary financing, subject to certain restrictions, inconnection with abnormal redemption activity. Borrowingspursuant to the Facility are subject to interest at a mutuallyagreed upon rate.

10 LIABILITY OF THE COMPANY

The Directors shall maintain for each Fund a separate pool ofassets. As between Shareholders, each pool of assets shall beinvested for the exclusive benefit of the relevant Fund.

With regard to third parties, in particular towards the Company’screditors, the Company shall be considered as one single legalentity. The Company as a whole shall be responsible for allobligations whatever be the Fund such liabilities are attributableto, save where other terms have been agreed upon with specificcreditors.

11 INVESTMENT COMMITTEE

The Directors have established an Investment Committee whichis responsible for making strategic recommendations to theBoard concerning the management of the assets of the EmergingMarkets Equity Fund. Members of the Investment Committeeare not remunerated by the Company for performing this role.

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DIRECTORS

Adolf BründlerManaging DirectorPrivate BankingBank Morgan Stanley AGZurich

Freddy Brausch Partner (Lawyer)Linklaters LoeschGrand Duchy of Luxembourg

Michael Green Managing DirectorMorgan Stanley InvestmentManagement LimitedLondon

Ronald Robison Managing DirectorMorgan Stanley InvestmentManagement Inc.New York

Stefano RussoManaging DirectorMorgan Stanley BankInternational LimitedBank LimitedMilan

INVESTMENT ADVISER

Morgan StanleyInvestment Management Inc1221 Avenue of the AmericasNew York, NY 10020USA

INVESTMENT SUB-ADVISERS

Morgan Stanley InvestmentManagement Limited25 Cabot SquareCanary WharfLondon E14 4QAUnited Kingdom

Morgan Stanley InvestmentManagement Company23 Church Street16-01 Capital SquareSingapore, 049481

Morgan Stanley Asset& Investment Trust Management Co., LimitedYebisu Garden Place Tower20-3, Ebisu 4-ChomeShibuya-ku, Tokyo 150-6009Japan

Morgan Stanley InvestmentAdvisors Inc.1221 Avenue of the AmericasNew York, NY 10020USA

Morgan Stanley & Co.International Limited25 Cabot SquareCanary WharfLondon E14 4QAUnited Kingdom

REGISTERED OFFICEEuropean Bank and Business Center 6, route de Trèves L-2633 Senningerberg Grand Duchy of Luxembourg

DISTRIBUTOR

Morgan Stanley InvestmentManagement Limited25 Cabot SquareCanary WharfLondon E14 4QAUnited Kingdom

CUSTODIAN BANK

J.P. Morgan BankLuxembourg S.A.European Bank and Business Center 6, route de Trèves L-2633 Senningerberg Grand Duchy of Luxembourg

ADMINISTRATOR, PAYINGAND DOMICILIARY AGENT

J.P. Morgan BankLuxembourg S.A.European Bank and Business Center 6, route de Trèves L-2633 Senningerberg Grand Duchy of Luxembourg

REGISTRAR AND TRANSFERAGENT

First EuropeanTransfer Agent S.A.5, rue Thomas EdisonL-1445 StrassenGrand Duchy of Luxembourg

AUDITOR

Ernst & Young S.A.6, rue Jean MonnetL-2180 LuxembourgGrand Duchy of Luxembourg

LEGAL ADVISER

Linklaters Loesch4, rue Carlo HemmerL-1011 LuxembourgGrand Duchy of Luxembourg

Directors and service providers

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AUSTRIA

Meinl Bank AktiengesellschaftBauernmarkt 2Postfach 99A-1014 WienAustria

FRANCE

Natexis Banques Populaires45, rue Saint Dominique75007 ParisFrance

GERMANY

Morgan Stanley Bank AGJunghofstrasse 13-1560311 Frankfurt am MainGermany

GREECE

Alpha Bank40, Stadiou StreetGR-102 52 AthensGreece

HONG KONG

Morgan Stanley Dean WitterAsia Limited30th FloorThree Exchange SquareCentralHong Kong

IRELAND

J.P. Morgan AdministrationServices (Ireland) LimitedJPMorgan HouseInternational Financial ServicesCentreDublin 1Ireland

ITALY

C/O CITCO Bank Nederland N.V.Strada 1 Palazzo F520090 Assago MilanofioriItaly

C/O Banca PopolareCommercio E Industria S.p.A.Via della Moscova, 3320121 MilanoItaly

C/O Banca Sella S.p.A.Via Italia, 213900 BiellaItaly

C/O Banca Popolare di LodiS.c.a.r.l.Via Polenghi Lombardo, 1326900 LodiItaly

C/O Iccrea Banca S.p.A.Via Torino, 14600184 RomaItaly

C/O IntesaBCI S.p.A.Foro Buonaparte, 3520121 MilanoItaly

C/O Rasbank S.p.A.Piazza Erculea, 1520122 MilanoItaly

C/O BIPOP Carire S.p.A.Via Leonardo da Vinci, 7425122 BresciaItaly

NETHERLANDS

ABN Amro Trust Company(Nederland) B.V.P.O. Box 14691000 BL AmsterdamThe Netherlands

SPAIN

Morgan Stanley Dean Witter,S.V., S.A. (sociedad unipersonal)Serrano 5528006 MadridSpain

SWITZERLAND

Bank Morgan Stanley AGBahnhofstrasse 928023 ZurichSwitzerland

UNITED KINGDOM

Morgan Stanley InvestmentManagement Limited25 Cabot SquareLondon E14 4QAUnited Kingdom

Paying and information agentsCopies of the Financial Reports of the Company can be obtained from the following Paying and Information Agents.

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Funds Name Total Expense Ratio (%) Funds Name Total Expense Ratio (%)

Equity Funds Asian Equity Fund A - USD 1.96Asian Equity Fund B - USD 2.96Asian Equity Fund I - USD 1.24Asian Property Fund A - USD 1.87Asian Property Fund B - USD 2.87Asian Property Fund I - USD 1.15Emerging Europe and Middle East Equity Fund A - EUR 2.36Emerging Europe and Middle East Equity Fund AX - EUR 2.36Emerging Europe and Middle East Equity Fund B - EUR 2.98Emerging Europe and Middle East Equity Fund I - EUR 1.79Emerging Europe and Middle East Equity Fund IX - EUR 1.79Emerging Markets Equity Fund A - USD 2.19Emerging Markets Equity Fund AX - USD 2.19Emerging Markets Equity Fund B - USD 3.00Emerging Markets Equity Fund I - USD 1.62Emerging Markets Equity Fund IX - USD 1.62European Equity Fund A - EUR 1.67European Equity Fund B - EUR 2.67European Equity Fund I - EUR 1.10European Property Fund A - EUR 1.85European Property Fund AX - EUR 1.85European Property Fund B - EUR 2.85European Property Fund I - EUR 1.13European Property Fund IX - EUR 1.13European Small Cap Value Fund A - EUR 2.32European Small Cap Value Fund AX - EUR 2.32European Small Cap Value Fund B - EUR 3.32European Small Cap Value Fund I - EUR 1.60European Small Cap Value Fund IX - EUR 1.60European Value Equity Fund A - EUR 1.84European Value Equity Fund B - EUR 2.84European Value Equity Fund I - EUR 1.12Global Brands Fund A - USD 1.77Global Brands Fund B - USD 2.77Global Brands Fund I - USD 1.05Global Small Cap Value Fund A - USD 2.19Global Small Cap Value Fund B - USD 3.15Global Small Cap Value Fund I - USD 1.47Global Value Equity Fund A - USD 1.77Global Value Equity Fund B - USD 2.77Global Value Equity Fund I - USD 1.05Japanese Equity Growth Fund A - JPY 2.20Japanese Equity Growth Fund AX - JPY 2.20Japanese Equity Growth Fund B - JPY 3.16Japanese Equity Growth Fund I - JPY 1.48Japanese Equity Growth Fund IX - JPY 1.48Japanese Value Equity Fund A - JPY 1.82Japanese Value Equity Fund AX - JPY 1.82Japanese Value Equity Fund B - JPY 2.82Japanese Value Equity Fund I - JPY 1.10Japanese Value Equity Fund IX - JPY 1.10Latin American Equity Fund A - USD 2.07Latin American Equity Fund B - USD 3.07Latin American Equity Fund I - USD 1.40US Equity Fund A - USD 1.75US Equity Fund B - USD 2.75US Equity Fund I - USD 1.18US Equity Growth Fund A - USD 1.83US Equity Growth Fund B - USD 2.83US Equity Growth Fund I - USD 1.06US Property Fund A - USD 1.92US Property Fund AX - USD 1.92US Property Fund B - USD 2.92US Property Fund I - USD 1.20US Property Fund IX - USD 1.20US Small Cap Growth Fund A - USD 2.05US Small Cap Growth Fund B - USD 3.05US Small Cap Growth Fund I - USD 1.33US Value Equity Fund A - USD 1.75US Value Equity Fund AX - USD 1.75

US Value Equity Fund B - USD 2.75US Value Equity Fund I - USD 0.98US Value Equity Fund IX - USD 0.98World Equity Fund A - USD 1.74World Equity Fund B - USD 2.74World Equity Fund I - USD 1.22

Bond FundsEmerging Markets Debt Fund A - USD 1.87Emerging Markets Debt Fund B - USD 2.87Emerging Markets Debt Fund I - USD 1.30Euro Bond Fund A - EUR 1.18Euro Bond Fund B - EUR 2.18Euro Bond Fund I - EUR 0.76Euro Bond Fund S - EUR 0.93Euro Corporate Bond Fund A - EUR 1.20Euro Corporate Bond Fund B - EUR 2.20Euro Corporate Bond Fund I - EUR 0.78Euro Strategic Bond Fund A - EUR 1.18Euro Strategic Bond Fund AX - EUR 1.18Euro Strategic Bond Fund B - EUR 2.18Euro Strategic Bond Fund I - EUR 0.76Euro Strategic Bond Fund IX - EUR 0.76European Currencies High Yield Bond Fund A - EUR 1.42European Currencies High Yield Bond Fund B - EUR 2.42European Currencies High Yield Bond Fund I - EUR 1.00Global Bond Fund A - USD 1.21Global Bond Fund AX - USD 1.21Global Bond Fund B - USD 2.21Global Bond Fund I - USD 0.79Global Bond Fund IX - USD 0.79Global Convertible Bond (Euro) Fund A - EUR 1.39Global Convertible Bond (Euro) Fund B - EUR 2.39Global Convertible Bond (Euro) Fund I - EUR 0.92Global Convertible Bond (USD) Fund A - USD 1.50Global Convertible Bond (USD) Fund B - USD 2.50Global Convertible Bond (USD) Fund I - USD 1.03Short Maturity Euro Bond Fund A - EUR 1.16Short Maturity Euro Bond Fund B - EUR 2.16Short Maturity Euro Bond Fund I - EUR 0.74US Bond Fund A - USD 1.19US Bond Fund AX - USD 1.19US Bond Fund B - USD 2.19US Bond Fund I - USD 0.77US Bond Fund IX - USD 0.77US Bond Fund S - USD 0.94US Dollar Short Duration Fund A - USD 0.82US Dollar Short Duration Fund B - USD 1.82US Dollar Short Duration Fund I - USD 0.40

Liquidity FundsEuro Liquidity Fund A - EUR 0.60Euro Liquidity Fund B - EUR 1.48Euro Liquidity Fund I - EUR 0.42Euro Liquidity Fund AX - EUR 0.00Euro Liquidity Fund IX - EUR 0.43US Dollar Liquidity Fund A - USD 0.80US Dollar Liquidity Fund B - USD 0.80US Dollar Liquidity Fund I - USD 0.40US Dollar Liquidity Fund AX - USD 0.80US Dollar Liquidity Fund BX - USD 0.80US Dollar Liquidity Fund IX - USD 0.40

Asset Allocation FundsGlobal Diversified (Euro) Fund A - EUR 1.52Global Diversified (Euro) Fund B - EUR 2.52Global Diversified (Euro) Fund I - EUR 0.95Global Diversified (USD) Fund A - USD 1.87Global Diversified (USD) Fund B - USD 2.87Global Diversified (USD) Fund I - USD 1.30

Appendix 1: Fund expense ratios*As at 30 June 2005

The following figures show the total expenses charged to each Class of each Fund open as at 30 June 2005, calculated net of any feewaivers and expressed as a percentage of average net assets for the six months. For further information in relation to the expensescharged to the Funds, please refer to pages 109 to 114.

* Please refer to Note 4 for details of changes to the Investment Advisory Fees during the period.

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www.morganstanley.com/sicavThe Morgan Stanley SICAV website is directed only to persons located in Austria, Germany, Italy, Luxembourg, Spain, Sweden, Switzerland and the United Kingdom.

CN S

AR S

ICAV

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Documents

Semi-annual report 2005 - Morgan Stanleyrecent semi-annual report, if published thereafter. In Switzerland, Bank Morgan Stanley A.G. carries out the functions of Swiss representative