Table - Fundsquare

Table of contents

1 Shareholders iriforrriation

Statement of investments

Equity Funds

2 A m i Fquity Furid

4 Asian Property Fund

5 Competitive Edge "Best Ideas" Fund

7 Emerging Europe Fund

9 Emerging Markets Equity Furid

12 Europe ex UK Property Fund

14 Euroliean Equity Fund

16 European Equity Growth Furid

18 European Growth Opportunities Fund

20 European Property Fund

22 European Small Cap Value Fund

24 Europeari Value Equity Fund

26 Global Brarids Fund

27 Global Small Cap Valtie Furid

31 Global Technology Fund

33 Global Value Equity Fund

35 Japanese Growth Opportunities Furid

39 Japanese Value Equity Fund

41 Latin Americaii Fquity Furid

43 US Eqiiity Fund

46 US Equity Growth Fund

49 US Growth arid lricorne Fund

52 US Property Fund

54 US Small Cap Growth Fund

58 US Small Cap Value Fund

63 World Equity Fund

Bond Funds

65 Ernergirig Markets Debt Fund

68 Euro Bond Fund

71 Euro Corporate Bond Fund

74 Euro Strategic Bond Fund

78 European High Yield Bond Fund

82 Global Bond Fund

85 Short Maturity Euro Bond Fund

87 US Bond Fiind

91 US High Yield Bond Fund

Liquidity Funds

96 Euro Liqiiidity Furid

98 Sterling Liquidity Furid

99 US Dollar Liquidity Fund

Asset Allocation Funds

100 Select Global Diversified (Euro) Fund

102 Select Global Diversified (USO) Furid

Futures contracts

105 Open futures contracts

Financial statements

106 Statement of assets and liabilities

112 Statement of changes in number of shares

118 Statement of operations and changes in rict assets

124 Staturnent of share and net assets statlstlcs

130 Notes to tho financial statements

133 Directors and adniinistratioii

134 Paying and Information agents

. Shareholders’ information The annual general meeting of shareholders of the Company is held at the registered office of the Company and will be held on the second Tuesday of the month of May at 10.30 am, or if such day is not a bank business day on the following bank business day.

Notices of all general meetings are sent by mail to all registered shareholders at their registered address at least 8 days prior to the meeting. Such notices will indicate the time and place of the meeting as well as the conditions of admission thereto. Said notices will also contain the agenda and requirements of Luxembourg law with regard to the necessary quorum and majorities at the meeting. To the extent required by law, further notices will be published in the Memorial, Recueil Special du Grand-Duchy de Luxembourg and in one Luxembourg newspaper.

Audited financial statements to the shareholders in respect of the preceding financial year are made available at the registered office of the Company and are sent to holders of registered Shares at their registered address. In addition, unaudited semi-annual reports are also made available at the registered office and will be posted to holders of registered Shares. The Company’s financial year end is 31 December.

Any other notices relevant to the Company are also published in a Luxembourg newspaper.

The net asset value per share of each Class of Share is available the day after each valuation date at the registered office of the Company, and is published daily in several leading 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 current prospectus supplemented by the latest annual report and the most recent semi-annual report, if published thereafter.

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

In Switzerland, the list of the purchases and sales of investments which the Company has undertaken during the financial period can be obtained, upon request and free of charge, from the Swiss representative, Bank Morgan Stanley A.G., Bahnhofstrasse 92, 8023 Zurich, Switzerland.

Funds Launched in the six months period 2002 Select Global Convertible Bond (Euro) Fund Select Global Convertible Bond (USO) Fund

The offering period started on 17 June 2002 and will end on 16 July 2002.

Asian Equity Fund Investment aims Statement of investments To seek long term capital appreciation, measured in US dollars, through investment in the stock markets of Asia, excluding Japan.

Change in net dwet v a l w pcr share For the six months ended 30 June 2002 Market 96 of net - -- - - - - -- - Investment H o I d i n g value assets

7

Transferable securities admitted to official exchange llsting or dealt in on another regulated market. As at 30 June 2002, expressed in

US dollars

South Korea Samsung Electronics 46,589 12,741 298 7 71 POSCO 33,940 3 766 409 2 28

6 34% 6 03% 5 52% 5 45% - ..

...

...

.-

. ...

. .

. .-

.

. -

.

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 dollars1 ~ - - - ~ - - -

Hyundai Motor SK Telecom Kookmin Bank Hyundai Mobis Shinhan Financial Group Samsung Electronics Pfd LG Electronics LG Chemical Samsung Electro-Mechanics SK Telecom ADR Tong Yang Confectionery Hyundai Development Shinsegae CJ39 Shopping Samsung Securities Hyundai Marine & Fire Insurance Hyundai Motor Ffd LG Household & Health Care Seoul Securities Humax Hana Bank Good Morning Securities Yuhan

Total far South Korea

Hong Kong Hutchison Whampoa Sun Hung Kai Properties Cheung Kong Holdings Henderson Land Development Johnson Electric Esprit Holdings Wharf (Holdings) Cathay Pacific Airways Li & Fung Texwinca Holdings SmarTone Telecommunications CLP Holdings Swire Pacific 'A' QPL International Holdings Techtronic Industries New World Development Television Broadcasts Pacific Century CyberWorks Hang Sen$ Bank Asia Satellite Telecommunications Moulin International

Total ror Hong Kang ..

115,660 3,475,569 14,770 3,308,824 58.379 2,834,026

107,820 2,276,499 160,270 2,264,830

15,500 2,100,166 52.549 2,096,718 45,680 1,651,771 33,550 1,625,906 57,843 1,433,928 28.290 1,241,656

174,470 1.112.373 6,420 1,088,678

15,453 1,058,460 30,550 873.583 28.320 842.7 73 62.475 685.511 19,690 591,682

134,080 512,692 19,669 479,186 29,079 41 5,760 68,300 3 2 7,O 2 2

5,354 242,554

783,140 608,000 449,000 425,000

1,419,200 861.000 554,000 682,000 640,800 769,000 552,300 142,500 104,633

1,193,000 515.000 552,000 102,000

1,823,000 39,900

192,500 1,522.000 -~

Taiwan Taiwan Semiconductor Manufact United Microelectronics Chinatrust Financial Holding Asiistek Computer Accton Technology Fubon Financial Holding Taishin Financial Holdings Sinopac Holdings Quanta Computer Siliconware Precision Industries Benq Taipei Bank Novatek Microelectronics Formosa Chemicals &Fibre Eva Airways

uring 2,341,631 2,344,130 2,827,519

587.973 874,000

1.353.674 2,297,000 1,916,701

264,750 968.671 416,640 831,000 225,000 619.480

1,366,000

5.848.487 4,618,491 3,741,691 1,765.396 1,683.036 1,650,261 1,306,880 1,044,866

862,621 660,556 623,112 566,350 535,241 439,730 439,073 438,772 434,157 430,044 427,137 318,367 136,591 - --

4.765.966 2,813,517 2,496,612 1.768.671 1,504.1 90 1.353.269 1,237,534

837,589 744,882

673,408 664,104 606,106 563.669 556.049

678,447

2.10 2.00 1.72 1.38 1.37 1.27 1.27 1.00 0.98 0.87 0.75 0.67 0.66 0 64 0.53 0.51 0.42 0.36 0.31 0.26 0.25 0.20 0.16

29.67 .-

3.53 2.80 2.27 1.07

1 0 0 0.79 0 63 0.52 0.40 0.38 0 34 0.32 0.27 0.27 0.27 0.26 0.26 0.26 0.19 0.09

16.94

1.02 ,

-.

2.89 1.70 1.51 1.07 0.91 0.82 0.75 0.51 0.45 0.41 0.41 0.40 0.37 0.34 0.34

Asian Equity Fund

State men t of investments (con ti nued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment Market % of net

H o I d I n g value assets

Taiwan (continued) Taiwdri Cenierit ASE lest Largan Precision Phoenixtec Power President Chain Store Orient Semiconductor Electro China Steel Compal Electronics Talwan Cellular Yageo Advanced Semicunductor Engineering

Total for Taiwan . . . ..

Singapore United Overseas Bank Singapore Airlines OBS Group Holdings Venture Manufacturing CapitaLand Oversea-Chinese Banking Singapore Press SIA Engineering Chartered Semiconductor Singapore Technologies Engineering Keppel Serribcorp Lugistics Neptune Orient Lines City Developments ST Assembly Test Services

Total for Singapore .

China China Mobile (Hong Koiig) Huaneng Power International ' H People's Food Holdings CNOOC Cosco Pacific Sinopec Shanghai Petrochemical PetroChina ' H Shandong International Power Development 'H' China Eastern Airlines 'ti' Xinao Gas Holdings Yan7hou Coal Mining 'H' Shangai Industrial Holdings China Merchants Holdings International China Southern Airlines 'H' Citic Pacific Legend Group TPV Technology Travelsky Technology 'H'

Total for China .. ..

Malaysia Malayan Banking Gamuda Technology Resources Industries Public Bank Resorts World Magnum Malaysian Pacific Industries AMMB Holdings Perusahaan Otorriobil Nasional Tanlong SP Setia BHD tlrltish Anierlcdn Tobacco

1,418,000 44.700 59,000 488,000 199,139

1,159.000 687,350 339,000 219.527 574,000 357,000

466,866 433,590 418,527 378,306 372,529 359,044 353,859 325,708 280,569 254,271 237,216

0.28 0.26 0.25 0.23 0.23 0.72 0.21 0.20 0.17 0.15 0.14

349,048 270,000 261.315 219.000

1,977,000 212,300 100,500 718,000 468,000 646.000 293,000 496.600

1,031,000 141,000 221.000

2,509,076 1,971,416 1,834,049 1,747,785 1,712,076 1,405,920 1,131,994 971,286 953,615 705,691 683,266 621,189 595.229 454,903 280,198

15.22

1.51 1.18 1.11 1 .0G 1.04 0.85 0.69 0.59 0.58 0.43 0.41 0.38 0.36 0.28 0.17

1,482.000 1,050,000 1,002,000 456,000 730.000

3,636,000 2,468,000

1,823,000 2,646,000 1,216.000 1,188,000 223,000 489,000 924,000 165,000 878,000 854,000 366,000

4,389,028 861,544 714.600 610,927 580.260 540,742 525,244

490,811 444,395 444,311 437,887 430,278 376,156 376,118 357,502 320,810 309,303 251,040

10.64

2.66 0.51 0.43 0.37 0 35 0 33 0.32

0.30 0 27 0.27 0.27 0.26 0.23 0.23 0.22 0.19 0.19 0.14

778.600 635,000 1.542.000 1,138.800 296.000

1.004,OOO 130,000 344.000 158,000 130,000 350.000 34,000

1,803,074 1,044,408 1.022.589 976,971 825,684 708,084 516,579 484,316 397,079 348,947 322,368 317,632

7.54

1.09 0.63 0.67 0.59 0.50 0.43 0.31 0.29 0.24 0.21 0.20 0.19

Investment ~ - .. . .. . - .

Market % of net H o I d i n g value assets

Malaysia (continued) UMW Holdings 91,000 186,790 0.11 TAN Chong Motor Holdings 361.000 129,200 0.08 Telekom Malaysia 57.000 119,250 0.07 Maxis Communications 53,000 67,645 0.05

Total for Malaysia 5.61 . . ... . .... ~

Indonesia PT Astra lnternatlonal 3,335,000 1,626,736 0.98 PT Telekomunikasi 2,902,500 1,249,211 0.16 PT Bank Central Asia 2,647,500 790,026 0.48 PT HM Sampoerna 1,597,000 751,486 0.45 PT Bentoel International lnvestama 11,075,500 349,565 0.22

Total for Indonesia 2.89 . . . . . . .- . .. . .... .-

Thailand Siarri Cement 34,200 782,326 0.46 Siain City Cement (Fl 114,900 619.735 0.38 Advanced Info Service Public (F) 565,700 544,859 0.33 BEC World Public (F) 78,700 454,804 0.28 PTr Exploration & Production Public (F) 145,400 409,627 0.25

Total for Thailand 1.70

Total Investment Securities 149,000,871 90.21

Total NAV 165,165,440 100.00

-. . . .

Asian Property Fund

Investment aims To seek long term capital appreciation, measured in US dollars, through investment in the equity securities of companies in the Asian real estate industry.

Change in net asset value per share For the six months ended 30 June 2002

3 95% 3 76% 3 22% 6 36% 7

6 - -

5 .....

4

3

2

0 --

....

............

_. .I: .....

....

0 Fund (net of expenses) Class I shares



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

State men t of invest men ts Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment Market X of net

Holding value assets

Hong Kong Sun Hung Kai Properties Henderson Land Development Wharf (Holdings) Hang Lung Properties Cheung Kong Holdings Hong Kong Land Holdings New World Development Sino Land Kerry Properties Hysan Development Hang Lung Group Great Eagle Holdings

Total for Hong Kong .... ~

355,000 544,000 753,000

1,250,000 159,000 776,000

1,405.700 1,315,585

468,000 416,000 337,000 86.265

Japan Mitsubishi Estate Mitsui Fudosan Sumitomo Realty & Development Office Building Fund of Japan Japan Real Estate Investment Daibiru Orix JReit Japan Retail Fund Investment Japan Prime Realty Investment

Total for Japan ... .. -.

Australia Wesffield Trust Wesffield Holdings Mirvac Group Stockland Trust Group General Property Trust Centro Properties Lend Lease lnvesta Property Group Macqiiarie Goodman Industrial Trust Wesffield Trust 'New'

Total for Australia ...... -

Singapore CapitaLand United Overseas Land City Developments Keppel Land Marco Polo Developments Wing Tal Holdings

2,696,652 2,259.707 1,776,319 1,426,291 1,325,009 1,249,360 1,117,359

497,564 492.003 402,669 317.560 94,560

.~

359,000 2,935,258 252,000 2,228,600 179,000 1,085,708

126 582,380 100 431,337

36,000 195,228 33 139,588 18 70,132 39 65,076 .. ...

677,152 112,400 335,326 296,063 437,599 326.711 47,775

222,779 192,800 20,940

......

1,292,406 943,912 786,823 729,596 690,266 660,237 282,667 258,868 153,684 39.261

8.96 7.52 5.91 4.75 4.41 4.16 3.72 1.66 1.64 1.34 1.06 0.31

45.44

9.77 7.42 3.61 1.94 1.44 0.65 0.46 0.23 0.22

25.74

4.30 3.14 2.62 2.43 2.30 2.20 0.94 0.86 0.51 0.13

992,000 859.069 459,000 467,638

85.000 274,232 203,000 174,648 138,000 150,751 251,000 103,710

19.43

2.86 1.56 0.91 0.58 0.50 0.35

Total for Singapore 6.76

Malaysia SP Seba 159,000 146,447 0.48 101 Properties 64,000 104,421 0.35

Total for Malaysia 0.83


~ -__- . . . . . .

. . . . . . . . .

Total NAV 30,048,191 100.00

Competitive Edge “Best Ideas” Fund Investment aims To seek long term capital growth, measured in US dollars, by investing primarily in the shares denominated in any currency of companies world-wide that are included in the “Best Ideas” sub-group of “Global Investing: The Competitive Edge”, a research compilation assembled and maintained by Morgan Stanley Equity Research.


__ .. -. . __ . - .. - n (8.30)X (8.55)% (9.041% (8.121% U

-1

-2

-3

-4

-5

-6

-7

-8

-9

.lo

..

.....

._

...

.....

. .

-.




a$ MSCl All Country World Free Index (expressed in US dollars) ....... - ..

Statement of investments Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Market % of net Investment H o I d i n g value assets

._ - -

United States of America General Dynamics Kraft Foods ‘A’ Walmart Stores Pepstco Minnesota Mining &Manufacturing Medtronic Daw Chemical Microsoft MBNA Exxon Mobil Wyeth State Street Cisco Systems Schlumberger Home Depot Citigroup General Electric American International Group Verizon Communications Abbutt Laboratories Merck & Co Oracle AOL Time Warner

25,200 2,680,020 3.58

43,100 2,370,931 3.17 48.300 2,328,060 3.11 18,500 2,275,500 3.04 48.500 2.078.225 2.78

65,000 2,661,750 3.55

60.000 33.000 54,500 44,000 34.400 39,000

119,000 35,000 43,000 39,700 52,000 20,500 33.000 34,500 24,400

105,000 60,000

2,062.800 1.805.100 1,802,315 1,800,480

1,743,300 1,660,050 1,627,500 1,579,390 1,538,375 1,510,600 1,398,715 1,324,950 1,298,925 1.235.616

994,350 882,600

1.761.2mo

2.75 2.41 2.41 2.40 2.35 2.33 2.22 2.17 2.11 2 05 2 02 1.87 1.77 1 7 3 1.65 1.33 1.18

Total for United States of America

United Kingdom Diageo BP ADR HSBC Holdings (HK Regdl AstraZeneca ADR

Total for United Kingdom

France Groupe Danone TotalFinaElf ‘B’ Suez

Total for France

203,000

130,000 30,000

w o o

16,800 12,400 60,500

2 .636 ,m 1,943,865 1,491,676 1,230,000 .~

2,309,461 2,013,194 1,613,174

53.98

3.52 2.60 1.99 1.64

9.75

3.08 2.69 2.15

7.92 .. -

Netherlands Heineken 54,500 2.391.843 3.19

ASML Holding ‘NY’ Rcgd 81,000 1.224.720 1.64

Total for Netherlands 6.56

Aegon 62,000 1,292,534 1 7 3

.- -

Japan Sony 41,700 2,216,160 2.96 Honda Motor 50,000 2,027,365 2.71

Total for Japan 5.67 .. ._ . _.

Finland UPM-Kymmene 62,000 2,440,569 3 26

Total for Finland 3.26 ... ~ ...... _ ...

Germany Bayerische Motoren Werke 58,000 2,354,710 3.14

Total for Germany 3.14 - ... -

Switzerland Syngpnta 32,700 1,965,406 2 62

Total for Switzerland 2.62 .. ~_ -. ....

Competitive Edge “Best Ideas” Fund

Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Market 56 of net lnvesment H o I d i n g value assets

Canada .-

Barrick Gold 95.700 1,817 343 2 43

Total for Canada 2.43 -. . .

Australia News Corp ADR Pfd 70,ooo 1,382,500 1.85

Total for Australia 1.85

Total Investment Securities 72.771.634 97.18

Total NAV 74,881,954 100.00

n n n 1 kmerging kurope Fund

Investment aims To seek capital growth, measured in Euro, through investment primarily in equity securities of companies that have their principal activities in Central, Eastern, and Southern European countries. The Fund may also invest in equity, equity-linked and debt securities of companies in the Middle East, North Africa and states of the former Soviet Union.

Cliange in net asset value per share For the ~ I X months ended 30 June 2002

(10.40)% (10.631% (10.851% (18.66)% 0

-2

4

-6

-8

-10

-12

-14

-16

-18

. - . .. .. 20

0 Fund Inet of expenses) Class I shares


111 Fund Inet of expenses) Class B shares

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

Statement of investments Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Market % of net Investment Holding value assets

-.

Russia and former Republics of the Soviet Union Surgutneftegaz ADR 97,677 LUKOIL ADR 26,610 Yukos ADR 9,643 Unified Energy System ADR 119,836 JSC Mining & Smelting ADR 43,300 Surgutneftegaz ADR Pfd 39,006 Sibneft Spons ADR 32 129 Wimm Bill Dann Foods ADR 26.000 OAO Gazprom ADR Regd 32,393 Rostelecom ADR 66,094 Vuzhnaya Telecommunication ADR 38,150 Mosenergo ADR 29,603

Total for Russia and former Republics of the Soviet Union ... -

Turkey Akbank Hurriyet Gazetectlik ve Matbaacilik Totas Turk Otomobil Fabrikasi Vestel Electronik Sanayi ve Ticaret Enka Holding Yatirim Aksa Akrilik Kimya Sanayii Tansas Perakende Magazacilik Ticaret Turkiye Is Eankasi 'C' Tupras-Turkiye Petrol Rafinerileri Eregli Demir ve Celik Fabrikalari Turkiye Garanti Bankasi Cinisa Cimento Sanayi ve Tica Dogan Yayin Holding Arcelik Aksigorta Ford Momotive Sanayii Hac1 Omer Sabanci Holding Akcansa Cimento Petrol Ofisi Ak Enerji Elektrik Uretim KOC Holding

Total for Turkey . .. .

238,242,840 250.302.558 242,449,900 221,034,933

6,067,626 45,100,000

513,200,908 109,164,743 67,009,340 26,004,110

205,865,869 67,883,000

130,020,549 31,514,219 71,066,876 18,419,000 61,057.647 28,171,113 8,342,985

19,995,524 266

1,928,701 1.771.653 1,367,030 1.213.459

916,373 835,372 592,116 555,512 537,939 401,561 121,687 94,424

776,000 759,330 634,859 451,734 395,267 352,845 335,956 285,902 278,176 261,574 259,671 255,791 240,814 201,270 199.706 179,394 152,081 142.136 127,880 102,163

3

5.36 4.93 3.80 3.37 2.55 2.32 1.65 1.54 1.50 1.12 0.34 0.26

28.74

2.15 2.11 1.77 1.26 1.10 0.98 0.93 0.79 0.77 0.73 0.72 0.71 0.67 0.56 0.56 0.50 0.42 0.40 0.36 0.28 0.00

1f.77

Israel Teva Pharmaceutical Industries ADR 38,764 2,621,277 7.28

4 00 Check Point Software Technologies 104,682 1.437.373

Total for Israel 11.28 . -_ . . _ . . . . .. .. .

Hungaty Mol Magyar Olal- es Gazipari 78,678 1,507,319 4 19 Matav 247,039 800,235 2 22 Egis 6,501 382,403 1.06 Gedeon Richter 3,755 217,810 0.61 OTP Bank 22,975 183,008 0 51

Total for Hungaty 8.59 . . . .. .. - . . . .. . .. -

Poland KGHM Polska Miedz GDR 160,428 1,080,288 Bank Pekao 24,270 564,522 ERE Bank 16,198 434,576 Bank Zachodni WBK 23,837 376,574 Bank Pekao GDR 15,000 349,347 Bank PrzemysloweHandlowy PBK GDR 800 25,842

Total for Poland _- ~.

3 00 1.57 1.21 1 0 5 0.97 0.07

7.87

Emerging Europe Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Market 56 of net Investment Holding value assets

Czech Republic Komercni Banka 22,537 1,163,550 3.24 Cesky Telecom GDH 33,264 279,570 0.78 Ceske Energeticke Zavody 68,061 202.724 0.56

......... ......................

Total for Czech Republic 4.58

Croatia Pliva D.D. GDR Regd 41,611 621,074 1.73

Total for Croatia 1.73 ~ . . . . . . .

Greece Titan Cement Aspis Pronia General Insiirance

10,300 408.498 1.14 60,000 152,400 0.42

Total for Greece 1.56

Egypt AI-Ahram Beverages GDR Regd 15.000 121,512 0.34 Misr International Bank GDR 27,800 45.744 0.13

Total for Egypt 0.47 .............. _ _. ...


Total NAV 35,966,547 100.00

Emerging Markets Equity Fund Investment aims Statement of investments To seek to maximise total return, measured in US dollars, through investment primarily in emerging country equity securities.

Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Change in riet asset value per share For the six months ended 30 June 2002

4 11% 3.85% 5

3.42 % 1.94%




&$ MSCl Emerging Markets Free (Net) Index (expressed in US dollars) . .. - _.

Investment H o I d i n g Market

value

South Korea Samsung Elertronics SK Telecom POSCO Hyundai Motor Kookmin Bank Shinhan Financial Group LG Clectronics LG Chemical Hyundai Mobis Samsung Electronics Ptd Samsung Electro.Mechanics Hyundai Development CJ39 Shopping Shinsegae Korea Electric Power Hyundai Marine & Fire Insurance Tong Yang Confectionery LG Household &Health Care Hyundai Motor Pfd Seoul Securities Good Morning Securities Humax Samsung Securities Hana Bank Yuhan

Total tor South Korea

Taiwan Taiwan Semiconductor Manufacturing United Microelectronics Chinatrust Financial Holding Accton Technology Asustek Computer Taishin Financial Holdings Fubon Financial Holding Sinopac Holdings Benq Quanta Computer Taipei Bank Taiwan Cellular Siliconware Precision Industries Eva Airways Largan Precision Novatek Microelectronics Formosa Chemicals &Fibre Taiwan Cement China Steel Phoenixtec Power Orient Semiconductor Electro Advanced Serniconductor Engineering Compal Electronics President Chain Store Yageo

Total for Talwan

South Africa Anglo American IZAR) Anglo American IGBPI Anglo American Platinum Sasol Gold Fields Old Mutual Barloworld South African Breweries Harmony Gold Mining Impala Platinum Holdings sappi

66,640 27,600 44,573

151.770 87,971

233,950 75,804 74.450

124,580 16.740 38,246

234,380 19,982

7,550 54.880 27,820 18,600 24,840 63,815

180,950 123.580 25.020 17,140 26,646 4.458

3,216.651 3,338,620 4,376,601 1,267,000

637,088 3,464,000 1,845,589 3,108,944

621,600 329,000

1,111,000 675,616

1,112,958 1,717,000

95,000 243,000 658.040

1,593,000 929.920 607,000

1,422,000 661,000 373,000 135,059 428,000

339,616 220,728 62,050

217,300 181,900

1,091,172 248.390 148,150 83,240 19.869 67,860

18,224,904 6,183,042 4,946,380 4,560,670 4,270,579 3.306.027 3,024,599 2,692,082 2,630,367 2,268,180 1,853,484 1,494,343 1,368,676 1,280,299 1,003,624

827.894 816,359 746,439 700,214 691,912 591,705 545,948 490,121 380,974 201,963

. . ..

6,546,910 4.007.143 3,864,404 2,180,560 1,916,413 1,866,268 1,845,037 1,358,593 1,004.681

925,651 887,869 863,478 779,504 698,928 673,900 654,594 598,755 524.484 478,738 470,557 440,518 439,216 358.375 252,655 189,596

% of net assets

_ _ . . .. . .

6.37 2,16 1.73 1.59 I .49 1.16 1.06 0.94 0.92 0.79 0.65 0.52 0.48 0 45 0.35 0.29 0.29 0.26 0.24 0.24 0.21 0.19 0.17 0.14 0.08

22.77

2.29 1.40 1.35 0.76 0.67 0.65 0.65 0.48 0.35 0.32 0.31 0.30 0.27 0.24 0.24 0.23 0.21 0.18 0.17 0 16 0.15 0.15 0.13 0.09 0.08

5,665,290 3.670.611 2,437,546 2.318.507 2,148,998 1,550,952 1,517,857 1.1 71,158 1,146,506 1,101,986

954,416

11.83

1.98 1.28 0.85 0.81 0.75 0.54 0.53 0.41 0.40 0.39 0.33

Emerging: Markets Eauitv Fund u u I J


H o I d i n g Market

value % of net

assets Market

value % of net

assets ..

2 07 0 59 0 36 0 34 0.33 0.30 0 29 0 24 0 22 0.21 0 20 0 20 0 17 0 14

Holding Investment

South Africa (continued) Bidvest Group Sanlam Standard Bank Group Anglogold FirstRand Nedcor South African Breweries MCell Liberty Group Anglogold ADR Sappi ADR

Total for South Africa

. . . . . . .

. -

Investment

China China Mobile (Hong Kongl CNOOC Uuaneng Power International 'ti' People's Food Holdings Sinopec Shanghai Petrochemical Cosco Pacific PetroChina 'H Yanzhou Coal Mining 'H' Shandong lnternatlonal Power Development 'H' China Southern Airlines 'H' Shangai Industrial Holdirigs China Eastern Airlines ' H Travelsky Technology 'H' China Merchants Holdings International

178.977 906,660 227,640

12,518 7 14,240 34.900 49.374

284,250 54,190 8,030

14,380

198.544 755,429 706,569 665,383 529,983 396,066 386,451 32 2,584 294,349 209,422 201,605

.~

0.28 0.26 0.25 0.23 0.19 0.14 0 14 0.11 0.10 0.08 0.07

2,007,000 1,262,000 1,256,000 1,345,000 6,404.000 1,070,000 3,842,000 1,876,000 2,347,000 1,446,000

295,000 3,379,000

716,000 514.000

5,343,846 1,690,767 1,030,571

961.358 952.396 850,518 817,662 691,479 631,889 588,600 569.202 567,502 491,106 395,387

10.12

2.42 0 95 0.95 0.82 0.68 0.62 0.54 0.43 0.40 0.29 0.17 0.16 0 11 0.07 0.06 0.03 0.02

8.72

0.86 0.82 0.71 0.69 0.59 0.46 0.32 0.24 0.22 0.20 0.20 0.19 0.17 0.14

0.14 0.13 0.11 0.09 0.09 0.08 0.07 0.06 0.03 0.03 0.03 0.02 0.00 0.00 0.00 0.00

Mexico Telefonos de Mexico ADR 'L' Grupo Financiero BBVA Bancomer '0' America Movil 'Y ADR Walmart de Mexico 'v' Cemcx 'CPO Grupo Televisa ADR Fomento Econoniico Mexicano ADR Fomento Economico Mexicano 'UBD Kimberly-Clark de Mexico 'A' Coca-Cola Femsa ADR Wal-Mart de Mexico 'C' Grupo Aeroportuario de Surestc ADR Grupo Aeroportuario de Sureste 'B' Cemex ADR 'CPO Grupo Financier0 BBVA Bancomer ADR Grupo Carso 'A l ' Walmart de Mexico 'v' ADR

Legend Group TPV Technology

393,156 0.14 1,076,000 1,044,000 378,118 0.13

5.93 .. .. - .. ._ .

215,862 3,317,881

202,367 865.544 368.837 47,230 39,557

311,146 427,873

34,507 206,027 34,400

230,000 7.721

10,900 32,354

2,406

6,9 2 4.8 5 3 2,712,355 2,711,718 2,350,764 1,954.521 1,765,457 1,551,425 1,218,929 1,140,134

828,168 476,471 443,760 301,810 203,526 179,850 97,404 63,759

Total for China

India State Bank of India (1) Hero Horida Motors lnfosys Technologies Morgan Stanley Growth Fund Container Corporation Of India Ranbaxy I aboratories Tata Iron &Steel Hindustan Lever Bharat Heavy Electricals Dr. Reddy's Laboratories Mahanagar Telephone Nigam Gujarat Ambula Cemcnts Hindustan Petroleum Housing Development Finance Hindalco Industries HDFC Bank Reliance Industries Bharat Petroleum Tata Engineering & Locomotive Wipro ADR Oil &Natural Gas Colgate-Palmolive ITC GDR Wipro ITC Dabur India

311,090 196,875 18,250

6,602,744 145,565 45.100

275,000 176,500 167,400 31,000

203,960 135.500 98,500 40,056 36,329

118,951 80,750 80.533

110.000 10.600 46,485

18,500 6,600

12,200 73,787

98,752

1,566,974 1.242.658 1,226,963 1,216,224

888.405 814,311 790,780 698,450 608.478 599.983 594,222 566.016 534.533 533,943 528,317 490,801 445,398 440,162 349,519

309,630 284,776 252,525 200,236 159,779 77,245

317,682

-

0.54 0.43 0.43 0 43 0.31 0.28 0.28 0.24 0.21 0.21 0.21 0.20 0.19 0.19 0.18 0.17 0.16 0.15 0.12 0.11 0.11 0.10 0.09 0.07 0 06 0.03

5.50 .

Total for Mexico

Brazil Companhia de Bebidas das Americas ADR Companhia Vale do Rio Doce Pfd 'A' Petroleo Brasileiro ADR Banco ltau Pfd Petroleo Brasileiro ADR Pfd Petroleo Brasileiro Pfd Empresa Brasileira de Aeronautica ADR Pfd Celular CRT Participdvoes Pfd 'A' Companhia Energetica de Minas Gerais Pfd Banco Bradesco Pfd Tele Norte Leste Participacoes Pfd Votorantim Celulose e Papel ADR Pfd Companhia Vale do Rio Doce ADR Banco Bradesco ADR Pid Companhia Energetica de Minas Gerais ADR norbvtg Pfd Tele Norte Leste Participacoes ADR Pfd Companhia de Bebidas das Americas Pfd Centrals Eletricas Brasileiras Banco ltau ADR Centrals Eletricas Brasileiras ADR Pfd 'B Centrals EletriLas Brasileiras Pfd 'B Companhia Vale do Rio Doce ADR Pfd 'A' Tele Celular SUI Participacoes ADR Petroleo Brasileiro Brasil Telecom Brasil Tplecom Participacoes ADR Pfd Brasil Telecom Participacoes Pfd Banco Nacional Pfd (1) Lola5 Arapua Pfd (11 Loias Arapua GDR 144A (1)

Total for Brazil .

157,585 91,026

107,187 35.379.900

96.696 76,508 42,900

4,800,289 56.136.000

144.575.614 56,524,000

28,800 17,300 20.220

35,222 38,400

2,079,000 26,314,000

9.380 48.800

20,212,000 6,318 8,596 4,900

21,078,472 2,378

246,644 30,754,160 11,491,000

12,659

2,448,871 2,331,134 2,021,547 1,985,892 1,682,510 1,317.854

918,060

630,188 562,985 561,175 544,320 478,691 399,345

395.895 382,080 319,089 271,033 262,640 229.848 190,030 163,952 94,728 91.107 83.560 67,321

1,371 0 0 0

688,746

Total for India

Russia and former Republics of the Soviet Union LUKOIL ADR 71,698 Surgutneftegaz ADR 153,536 OAO Gazprom ADR Regd 125,500 Yiikos ADR 12,578 JSC Mining & Smelting ADR 66.746 Unified Energy Systems GDR 84,068 Surgutneftegaz ADR Pfd 17,720

Total tor Russia and former Republics of the Soviet Union ... .

4,714,143 2,I193,952 2,058,200 1,760,920 1.394.991

855,126 374.778

. .

2,899,368 1,632.695 1,465,461 1,128,421

968,906 889,842 688,461 623,868

1.64 1.05 0.72 0 62 0.49 0.30 0.13

4.95

1.01 0.57 0 51 0.39 0.34 0.31 0.24 0.22

Malaysia Malayan Banking Technology Resources Industries Gamuda Magnum Public Bank Resorts World AMMB Holdings Malaysian Pacific Industries

1.252.000 2,462,000

891,000 1,600,000 1,129,400

319,000 489,000 157,000 6.69

. . . . , . . . .

" ' '

Emerging Markets Equity Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Market X of net Investment Holding value assets

. ._-

Malaysia (continued) SP Setia BHD 676,000 British American Tobacco 58.800 Perusahaan Otomobil Nasional 205,000 UMW Holdings 125,000 Telekorn Malaysia 102.000 1AN Chong Motor Holdings 577,000 Maxis Communications 102,000

-.

Total for Malaysia

Israel Teva Pharmaceutical Industries ADR Check Point Software Technologies Teva Pharmaceutical Industries leam Telecom lntcrnational ECI Telecom Radware Taru Pharmaceutical Industries klbit Systems First International Bank of Israel

Total for Israel

66,892 254,202

16,910 56,575

239,598 65.008 10,226

1 1

Indonesia PT Astra lnterridtional 4,885.500 PT HM Sampoerna 4,657,500 PT Telekomunikasi 4,063,500 PT Rank Central Asia 3,499,000 PT BPntoel lnternatiunal lnvcstama 8.950.500

.

622,632 549.3 16 515,197 256,579 213.395 206,505 130.184

4,467,048 3.446.979 1,123.777

905,766 718,794 565.570 250,741

11 3

2,383,034 2.191.639

1,044,118 282,496

1,748,895

0 22 0.19 0.18 0.09 0 07 0 07 0 06

4.47 .

1 5 5 1.21 0.39 0 32 0 25 0 20 0.09 0 00 0.00

4.01

0.83 0.77 0.61 0.37 0.10

Total for Indonesia 2.68

Turkey Akbank Hurriyct Gazetecilik ve Matbaacilik Arcelik Aksigorta Veslel Electronik Sanayi ve Ticaret Turkiye Is Bankasi 'C' Turkiye Garanti Bankasi Anatlolu Res Btracilik ve Malt Sanayii Yapi ve Kredi Bankasi(1)

Total for Turkey ~.

534,035.800 278,060,800 86,369,000

162,078,000 217,161,660 149,205,000 224,932,000

12.371.000 195,387,774

1.71 7.807 833,042 544,743 449,791 438,295 385,834 280,190 241,880 194.094

0.60 0.29 0.19 0.16 0.15 0.13 0.10 0.09 0.07

Hungary OTP Bank Matav Mol Magyar Olaj- es Gazipari Gcdeon Richter Gedeon Richter GDR Matav ADR MOL Magyar olaj-es Gazipari GDR OTP Rank GDR

Total for Hungaty ... . . . . .

193,858 1,524,963 249,386 797,786

33,601 635,720 8,355 478,603 7,974 461,695 7.735 123,760 1,360 26,153

390 6,240 ....

1.78

0.53 0.28 0.22 0.17 0.16 0.04 0.01 0 00

1.41

Investment

Poland Rank Pekao 60.666 Telekomunikacja Polska GDR 139,454 KGHM Polska Miedz 72,665 Polski Koncern Naftwovy Orlen 51,096 Telekomunikacja Polska 62,233

H o I d i n g . . -

Total for Poland

Chile Compania Telecomunicaciones de Chile ADR ' A 66,108 Enersis ADR 12.000

Total for Chile ......

Market 96 of net value assets

1,393,538 0.49 380,709 0.13 236,405 0.08 225,423 0.08 169,489 0.06

0.84

809,823 0.28 69,480 0.03

0.31

Venezuela Compania Anonima Nacional Telefonos de Venezuela ADR '0'60,138 855.764 0.30

Total for Venezuela 0.30 . . . . ~.

Argentina Sociedad Comercial del Plata 20 0 0 00 RendUlt Argentina 1 0 0 00

Total for Argentina 0.00 .. . -

.- . __ - Total transferable securities admitted to official exchange listing or dealt in on another regulated market 93.39

Other transferable securities not admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Russia and former Republics of the Soviet Union Mustcom CV Ser144A 0%/2025 (11 6,651,637 971.139 0.34

Total tor Russia and former Republics of the Soviet Union 0.34

Total other transferable securities not admitted to official exchange listing or dealt in on another regulated market 0.34

Total Investment Securltles 268,023,507 93.73

Total NAV 285,939,171 100.00

.... .. . -

......... ...... ...

- . ...

. .... -.

(1) This securitv is valued at its fair market value

Thailand Slam Cement 51,700 1,182,639 0.41 PTr Exploration & Production Public (F) 234,200 659.798 0.23 Advanced Info Service Public (F) 670,400 645,702 0.23 BEC World Public IF) 102,600 592,921 0.21

-- ........

Total tor Thailand 1.08

. . . . . . . . . .

Europe ex UK Property Fund Investment aims To seek long term capital appreciation, measured in euro, through investment primarily in the equity securities of companies in the European real estate industry.

Chdnge in net asset value per share For the six rnonths ended 30 June 2002 ...

16

14

12

10

8

6

4

15.73% 15.56% . .- .- .....

....


..

15.08% ..

13.71%


Market I of net Investment H o I d i n g value assets

France Unibail Simco Regd Gecina Societe Fonciere Lyonnaise Sophia (ex-SFI1 Klepierre SILK (Societe Immobilikre de Location pour I'lndustrie et le Commerce) Societe Fonciere Lyonnaise Wts exp. 30/07/2002 (1)

Total for France --

190.981 80,808 62,258

162,854 98,069 20,391

1,700

11.696

11,936,313 6,755,549 5,877,155 4,804,193 3,136,247 2,518,288

300,900

0

9.42 5.33 4.64 3.79

1.99

0.24

0.00

2.48

Netherlands Rodamco Europe 282,800 Wereldhave 94,636 Corio 203.314 Euroconirnercial Properties 2 2 3,8 3 5 Uni-Invest 137,552 Vastned Ofhccs/lndustrial 25,370

Total for Netherlands ...

Spain Vallehermoso Metrovacesa Inmobiliaria Colonial Inmobiliaria Urbis

640,283 267,957 324,429 229.500

12, I1 7,980 5,304,348 5,192,640 4,275,248 1,463,553

588,584

27.89

9.56 4.19 4.10 3.38 1.16 0.46

6,210,745 5.619.058 4,545,250 1,289.790

22.85

4.90 4.44 3.59 1.02

-- ~- Total for Spain 13.95 Fund (net of expenses) Class A shares


EPRA ex UK Index (expressed in Euro) Sweden JM 159,943 4,229,389 3.34

.... . . . . . ... Drott ' 6 337,837 3,945,611 3.11 Cast e I I u m 113,427 1,574,665 1.24 Pandox 87,573 820,144 0.65

. . . . . . Total for Sweden 8.34

Italy Beni Stabili 8,778.286 4,942,175 3.90 Aedes 737,100 2,643.241 2.09 Pirelli & C Real Estate 22.200 505.050 0.40

459,370 0.36 Bonaparte

Total for Italy 6.75 ... -.

567,824 .... ~.

Ireland Green Property 622,669 5,604,021 4.42

Total for Ireland 4.42

Switzerland

Jelmoli Holding 'Bearer' 1,185 1,100,558 0 87

Total for Switzerland 3.88

PSP Swiss Property 36,865 3,812,588 3 01

. _. . - -

Belgium Cofinimmo 31.980 3,002,922 2.37

16,000 1,032,000 0 81 .

Befimmo S C A Sicafi

Total for Belgium 3.18 -

Europe ex UK Property Fund

Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Market X of net Investment H o I d i n g value assets

Germany IVG Holding 325,518 3 317,028 2 62

Total for Germany 2.62

- ._

_._ .

Finland Sponda 345,356 2,072 136 1 64

Total for Finland 1.64 __ -. -

Norway Steen & Stroin 121,422 1,605,651 1.27

Total tot Norway 1.27 - . ... __

Denmark 0 58 TK Development 57,800 739,200

Total for Denmark 0.58

Total investment Securlties 123,341,540 97.37

Total NAV 126,672,562 100.00

.- __ .

~. . .-

(1) This seciirity is valued at its fair market value

... .

"' 1. . . .,.. ., 5 " . . -- '

, . . . . . . , . . .. . , F . , . . . . ._ . . .; . . .

Luropean Lquity Pund

Investment aims Statement of investments To seek long term capital appreciation, measured in Euro, through investment primarily in equity securities of medium to large sized companies based in European countries.

Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Change in net asset vduP per share For the six months ended 30 June 2002

Market % of net Investment H o I d i n g value assek

... - -- -

United Kinedom (12.911% (13.151%

0

-2

-4

.6

.a

-1 0

42

-14

(13.47196 (13.991%




;$ MSCl Europe (Net1 Index (expressed in Euro) ...

~~

GlaxoSmithkline BP HSBC Holdings Vodafone Group Lloyds TSB Group Barclays Rentokil Initial AstraZeneca Group Reed Elsevier Allied Domecq Imperial Tobacco Group CGNU Hays Compass Group Cadbury Schweppes WPP Group GUS Amvescap William Hill Diageo HMV Group Imperial Tobacco Group 'New'

559.540 1,295,032

654,236 5,478,190

735,145 802,016

1,607,433 120,378 512,911 576.435 212,611 394.164

1,321,245 509.907 379,354 320,195 229,504 202.963 396,300 120,253 580,400

81,244

Total tor Unlted Kingdom

France TotalFinaElf 'B' Aventis Suez L'Oreal Sanofi Synthelabo Carrefour BNP Paribas Schneider EleLtriL LVMH Moet Hennessy Louis Vuttton Vivendi Environnement Credit Agricole Cap Gemini Vivendi Universal Sodexho Alliance

Total for France -__ -

Switzerland Navartis Regd Nestle Regd UBS Rcgd Roche Holding 'Genuflschein' Adecco Regd Compagnie Financiere Richemont 'A' Syngenta Kaba Holdings Repd 'B' STMicroelectronics Roche Holding 'Bearer'

Total for Switzerland - ....

Netherlands Royal Dutch Petroleum ING Groep Kontnklijke Philips Electronics Akzo Nobel Koninklijke KPN Gucci Group Vedior 'CVA' Heineken

Total for Netherlands -.

70,282 133.309 217.239

50,545 54,801 59,610 48,200 37.1 73 36,669 58,642 48,840 23,677 42.500 12,230

12,246,205 11,013.522 7,618,822 7,609,809 7,409,354 6,833,076 6,624.274 5,066,542 4,935,971 3,827,942 3.501.421 3,209.1 76 3.140.496 3,132,304 2,877,811 2,737.905 2,134,231 1,674.398 1,620,929 1,581,356 1,428.835 1,300,362

.

11,554,361 9,564,921 5,865.453 3.993.055 3,375,742 3,266,628 2.699.200 2,024,070 1,670,119 1,832,563 1,098.900

952,999 a29,900 469,632

206,566 37.915

116,912 47,753 48,037 76.069 25,670 6,967

48.846 7,016

9,198,786 8,951,639 5,954,056 3,655.234 2,889,284 1,751,977 1.562.314 1,516,903 1,233,362

809.136

165.955 191,732 172,773 101,131 687.400

20,040 108,500 32.755

9,359,862 4,985,032 4.884.293 4,458,866 3,258,276 1,903,800 1,519.000 1,455,632

3.93 3.54 2.45 2.45 2.38 2 20 2.13 1.63 1.59 1.23 1.13 1.03 1.01 1.01 0.93 0 88 0.69 0.54 0.52 0.51 0.46 0.42

32.66

3.72 3.08 1 89 1.28 1 0 9 1 0 5 0 87 0.65 0 60 0.59 0 35 0.31 0.30 0 15

15.93 - - -

2.96 2 88 1 9 2 1 1 8 0 93 0.56 0 50 0.49 0 40 0 26

12.08 .. ___

3.01 1.60 1.57 1.43 1.05 0 61 0.49 0.48

10.24

. . ' . . .c.,-.

.... .. I " ! . . .. ( L ' . , I.".. ;; ..,

European Equity Fund


Market 96 of net Investment Holding value assets

.. .- .-

Germany Muenchener Rucckversicherungsgesellschaff Regd Deutsche Bank Hegd Allianz Regd RWE Siemens Ueutsche Post Regd Hugo Boss Wd SAP

Total for Germany -.

27,315 67,436 20,680 67.672 26,200

11 1.700 60,200 9,586

6,555,600 4,747,494 4,228.026 2,713,647 1.592.436 1,462,153 1,128,750

951.411

2.11 1.53 1.36 0.87 0.51 0.47 0.36 0.31

7.52

Italy EN1 407,598 6,562,328 2.11 Assicuramni Generali 214.830 5,155,920 1.66 Telecom ltalia 556,668 4.414.377 1.42 UniCredito Italian0 652.672 2,989,238 0.96

0.58 Uavide Campari-Milano 53,896 1,805,516

Total for Italy 6.73 - . ..

Spain Teleforiica 701,359 5,961,552 1.92 Cndesa 245.107 3,605,524 1.16 Banco Santander Central Hispano 314,500 2,528.580 0.81 Rarico Bilbao Vizcaya Argentaria 204,100 2,336,945 0.75 Gas Natural SDG 93,400 1,821,300 0.59 Amadeus Global Travel Distribution 'A 164.261 1,064,411 0.34 - .. .

Total for Spain

Finland Nokia % 555,947 Sampo ' A 192,500

Total for Finland -. .

Sweden Nordea Sverlska Handelsbanken ' A Assa Abloy '0

425.090 118,331 118,470

5.57

8,239,134 2.65 1,520,750 0 49

3.14

2,341,812 0.75 1,831,791 0.59 1,690,360 0.55

Total for Sweden 1.89

Belgium Electrabel 8,102 1,895,868 0.61

Total for Belgium 0.61 .

Denmark Novo-Nordisk 'E 46,400 1,555,348 0 50

Total for Denmark 0.50 .. - ... - - .

Portugal Portugal Telecom SGPS Regd 187,570 1,341.125 0 43

- . -~ Total for Portugal 0.43

Total Investment Securities 302.41 1,132 97.30

Total NAV 310.808.541 100.00 .~

. ....

European Equity Growth Fund

Investment aims Statement of investments To seek long term capital appreciation, measured in Euro, through investment primarily in growth orientated equity securities of medium to large sized companies based in European countries.

Change in net asset value per share -. . ... . .. -



United Kingdom

. .-

For the six months ended 30 June 2002 ...- - .. . GlaxoSmithklinc 1.198.664 26.234.200 5.55

0

-2

4

-6

-8

-10

-1 2

-14

(14.751% (14.951% (15.381%

..... .

-16 .




4 MSCl Europe (Net) Index (expressed in Euro)

Lloyds TSE Group (13.991% Barclavs

I~ ~~ ~~

Reed Elsevier Vodafone Group BP HSBC Holdings Hays Cadbury Schweppes Allied Oomecq Shell Transport &Trading WPP Group Rentokil Initial Compass Group Amvpscap CGNU GUS William Hill HMV Group ARM Holdings


France TotalFinaElf '6 Aventis Carrefour L'Oreal BNP Paribas Sanofi Synthelabo JC Decaux LVMH Moet Hennessy Louis Vuitton Vivendi Environnement Cap Gemini Credit Agricole

1,514:400 1,726,104 1,448,660 9,118,145 1,218,201

825,800 3,431,400

946,000 913,430 775,200 683,540

1,322,759 828.572 609,500 514,800 376,380 607,400 931,900 519,700

15,263,282 14,706,190 13,941,101 12,666,107 10,360,118 9,616,749 8,156,169 7,176,436 6,065.831 5,922,610 5,844,776 5,451,125 5,089.879 5,028.235 4,191,362 3.500.078 2.484.362 2,294,162 1,171,115

166.587 266.478 127.000

78.420

27,386,903 19,119,796 6,959,600 6.195.180

3.23 3.11 2.95 2.68 2.20 2.04 1.73 1.52 1.29 1 2 6 1 2 4 1.16 1.08 1.07 0 89 0.74 0.53 0.49 0.25

35.01 -

5.80 4.05 1.48 1.31

72,120 4.038.720 0.86 0 83 63,520 3,912,832

243,350 3,333,895 0.71 0 63 57,900 2,952,900 0.62 93.400 2,918,750 0.52 61,140 2,460,885 0.36 76,530 1,721.925

-- SodexhoAlliance 26.025 999,360 0.21 - . - . --

Total for France 17.38

Switzerland Nestle Regd Novartis Regd UBS Regd Kaba Holdings Regd 'B Roche Holding 'GenuRschein' Compagnie Financiere Richemont 'A' Adecco Regd Syngenta STMicroelectronics Roche Holding 'Bearer'

Total for Switzerland ..

69,200 337,569 188,208 29,610 77,920

191,200 63.854 39,112 69,820 11,346

..

16,337,951 15,032,605 9.584.996 6,446,892 5.964.355 4,403,607 3.840.629 2,380,413 1,762,955 1,308,502

~. .-

3.46 3.19 2.03 1.37 1.26 0.93 0.81 0 50 0.37 0.29

14.21

Netherlands Koninklijke Philips Electronics 346,322 9,790,523 2.07 ING Groep 304,600 7,919,600 1.68 Gucci Group 75,363 7,159,485 1.52 Koninklijke KPN 1,101,800 5,222,532 1.11 Heineken 100,100 4,448,444 0.94

Total for Netherlands 7.32 - -- . - -

Italy EN1 682,899 10,994,674 2.33 Luxottica Group ADR 276,100 5,311,998 1 1 3 UniCredito ltaliano 1,061,900 4,863,502 1.03 Telecom ltalia 437,150 3.466.599 0.73 Mediaset 349.300 2,738,512 0.58

Total for Italy 5.80 . - . -

.. .

, . .. , :4. . ._ , .. ,,, '

European Equity Growth Fund


Investment Holding

Germany Muenchener Rueckversicherurlgsgesellschaft Regd 38,170 Deutsche Bank Regd 109,916 Allianz Hegd 32,940 SAP 14,549

Market value

9.160.800 7.738.086 6,734,583 1,443,988

56 of net assets

1.94 1.64 1.43 0.31

Total for Germany

Spain Telefonica 1,209,058 Amadeus Global Travcl Distribution 'A' 715.100 Gas Natural SOG 148,600

10,276,993 4,637,736 2,897,700

5.32

2.18 0.98 0.62

.

Total for Spain 3.78

Finland Nokia ' A 877,940 13,011,071 2.76 Sampo 'A' 293,800 2,321.020 0.49

Total for Finland 3.25 . .. .. . . -. . .

Sweden Assa Abloy ' B 285.316 4,070,962 0.86 Nordea 675,500 3,721,316 0.79 Svenska Handelsbankcn 'A' 164,900 2.552590 0.54

Total for Sweden 2.19 . . . . .. . -.

Port u g a I Portugal Teleconi SGP5 Regd 412 600 2,950 090 0 63

Total for Portugal 0.63


Total NAV 471.781.516 100.00

__ -

._ ._. ~

.

- -

European Growth Opportunities Fund*

Investment aims To seek long term capital appreciation, measured in Euro, through investment primarily in the equity securities of growth orientated small and medium sized companies that have their principal activities in Europe.

-

0

-2

-4

-6

8

-10

-12

Change in net asset value per share For the six months ended 30 June 2002 - ..... , .. ,. ..

(11.311% (11.551% (11.911% (4.841%

7

..




MSCl European Small Cap Index (expressed in Euro) -. ...... . .

* This Fund is not available in Hong Kong

S ta terne n t of investments Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Investment

Spain Grupo Empresarial Ence Ebro Puleva lndra Sistemas Actividades de Construccion y Servicios Inmobiliaria Urbis Bankinter Amadeus Global Travel Distribution 'A' NH Hoteles Acciona Viscofan Envolturas Celulosi Mecalux lnmobiliaria Colonial Indite x Grupo Dragados Promotora de lnformaciones Baron de Ley Grupo Ferrovial Fomento de Construcclunes y Contratas Gas Natural SDG Acerinox Metrowacesa Ab en g o a Tubacex Grupo Auxiliar Metalurgico Telefonica Publicidad e lnformacion Zeltia Puleva Biotech

Total for Spain ......

France Pechiney 'A' Essilor International Oassault Systems Air France Business Objects Valeo Thomson Multimedia Lagardere S.C.A. TechnipFoflexip Elior

Total for France

United Kingdom ARM Holdings Amec Wood Group (John) FKI William Hill SkyePharma Egg Six Continents Amey Logica

Holding

4,075 5,345 6,815 1,485 8,080 1,485 6,790 3,385

960 5,285 9,710 2,725 1,160 1,800 3,545 1,005 1.045 1,140 1.355

595 1,150 3,210

15,030 1,005 4,255 1.725

214

Market % of net value assets

64,793 1.26 63.071 1.23 59,631 1.17 48,411 0.95 45,410 0.89 44.699 0.87 43,999 0.86 42,990 0.84 42,422 0.83 41.223 0.81 40.976 0.80 38,177 0 75 37,629 0.74 32,490 0.64 30,239 0.59 29.728 0.58 28,852 0.56 28,158 0.55 26,423 0.52 25,258 0.49 24,116 0.47 23,594 0.46 22,695 0.44 17,789 0.35 17,573 0.34 13,886 0.27

892 0.02

2,430 112,388 2,220 91,397 1,810 83,713 4,675 79.241 2,265 67.157 1,510 63,571 2,615 62,629 1,285 56,334

515 54,899 6.235 51,314

.

52,170 15,160 27.000 35,800 20,000 73.450 22,010

5,115 15,260 6,480

11 7.562 97,924 87,514 86,613 81,803 71,988 52.995 52,619 42,160 20.003


Germany Altana Deutsche Lufthansa HeidelberEer Druckmaschinen Porsche Fid Fraport AWD Holding Tecis Holding

........... ...

18.28

2.20 1.79 1.64 1.55 1.31 1.24 1.22 1.10 1.07 1.01

14.13

2.30 1.91 1.71 1.69 1.60 1.41 1.04 1.03 0.82 0.40

13.91

2,736 6,338 2,138

150,316 2.94 91,267 1.78 89,518 1.75

118 56,935 1.11 2,355 55,814 1.09 2,128 50.604 0.99 1,537 48,200 0.95


European Growth Opportunities Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. A5 at 30 June 2002, expressed in Euro,

Investment

Portugal Portugal Teleconl SGPS Regd Electricidade de Portugal

~ -. ..

Market 46 of net H o I d i n g value assets

18,765 134.170 2.62 57,250 112,210 2.19

lbersol SGPS 21,430 76,291 1.49 Vodafone Telecel-CornunicaCoes PeSSoaiS 8,565 60,640 1.19

Total for Portugal 7.49 . ............... . . .

Italy Riunione Adriatica di Sicurta 8.355 113,544 2 22 Mediolanum 18.385 110,862 2.17 Saipem 10.830 78,842 1.54 Pirelli & C Real Estate 2,845 64.724 1 2 7

Total for Italy 7.20 .

Sweden Securitds 'B' 5,475 114011 2 23 Sandvik 2,710 68,526 1 34 Eniro 7,705 59,850 1 1 7

Total for Sweden 4.74 ._ .

Switzerland Logitech International Regd PSP Swiss Property Converium Holding

Total for Switzerland

Finland UPM-Kymmene

2,265 106,644 2.09 610 63,086 1.23 830 43,428 0.85

4.17

4,155 165,618 3.24 . - - -

Total for Finland 3.24

Netherlands Koninklilke KPN 16.175 76,669 1 5 0 Fugro 1,245 69,097 1.35

Total for Netherlands 2.85 . ._

Luxembourg Arcelor 5,390 77,454 1.51 RTL Group 1,355 54,200 1.06

Total for Luxembourg 2.57 ....

~ .

Ireland Bank of Ireland 4.885 61,453 1.20 Riverdeep Group 20,040 53,908 1.06

Total for Ireland 2.26 ..

Greece Hellenic Telecommunications Organization 5,723 91,568 1.79

.



Total NAV 5,114,309 100.00

~. . . . .

.................

. ._

European Property Fund

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


Change in net asset V d k per share For the six months ended 30 June 200?

Market Sb of net Investment H o I d i n g value assets

-

United Kingdom Land Securities Canary Wharf Group British Land Slouah Estates

835,570 11,129,811 7.75 1,482,388 10,181,600 7.09

893,493 7,681,402 5.35 739,020 4 . 1 4 1 . m 2.88

12 3296 12.01% 11.44% 10.09% 14 .

Liberty International Derwent Valley Holdings Minerva Chelsfield Benchmark Groiip Hammerson CLS Holdings Capital R Regional Brixton Grantchcster Holdings Freeport Great Portland Estates Marylebone Warwick Balfour Group 'New'

427,371 258,404 718,108 525,622 597,375 252,940 609,482 463,049 460,530 494,370 171.042 188,600 61,594

3,845,632 2.68 3,031,147 2.11 2,948,258 2 05 2,604,190 1.81 2,305,054 1.60 2,161,966 1 5 1 2,100.132 1 46 1,970,773 1.37 1.727.262 1.20 1,568,043 1 09 1,069,183 0 74

721,568 0.51 88,413 0.07

Total for United Kingdom 41.27

France Unibail Societe Fonciere Lyonnaise Sirrico Regd Gecina Kleoierre

138,961

66,007 55,492 17.158

in7.678 8,685,063 6.05 5,536,501 3.85 5,518,185 3 84 5,238,445 3 65 2,119,013 1.48 1,840,449 1 2 8

1,397,946 0.97 947,850 0 66

21.78 ..._ .

.. ...


, -

Sophia (ex-SFI) 57.550 SILK (Societe lmmobilibre de Location

El 111

pour I'lndustrie et le Commerce) 7 898 Bail-lnvestissement 7,100

Total for France



$9 GPR-General Real Estate Securities Index - Europe (expressed in Euro) Netherlands Rodamco Europe 167,890 Coria 115,271 Eurocommercial Properties 126,096 Wereldhave 32,587

Total for Netherlands .- ... . . . .

7,194,086 5.01 2,944,021 2.05 2,408,434 1.68 1,826,501 1.27

10.01

Spain Metrovacesa Inmobiliaria Colonial Vallehermoso Inmobiliaria Urbis

184,372 259,419 281.685 342.469

3,866,281 2 69 3,634,460 2 53 2,732.345 1.90 1,924,676 1.34

8.46 - _ ._

Total for Spain

Italy Beni Stabili Aedes Pirelli & C Real Estate Bonaparte

6,690,505 709,150 25,800

343,327

3,766,754 2.62 2,543,012 1.77

586,950 0.41 277.752 0.19

Total for Italy 4.99

Switzerland

1.01 Jelmoli Holding 'Bearer'


PSP Swiss Property 26,350 2,725,124 1.90 1,560 1.448.836

_

Ireland Green Property

Total for Ireland . . .

389,790 3,508,110 2.44

2.44

European Property Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Investment Market 96 of net


Sweden Drott ' B Castellurri JM Pandox

104,670 1,222,445 0.85 56,879 789,630 0.55 24,508 648.068 0.45 33.540 314,111 0.22

Total for Sweden

Germany IVG Holding

Total for Germany

Belgium Cofinimmo Behniriio

Total for Belgium

Norway Steen & Strom Invest

2.07

220,012 2.241.922 1 5 6

1.56 - .. . .-- - -.

13.300 1,248,870 0.87 12,700 81 9,150 0.57

1.44

127,323 1,683,684 1.17

Total for Norway 1.17

Finland Spundd 224,514 1,347,084 0 94


Total Investment Securities 142,261.780 99.04

_ _

.

Total NAV 143.647.159 100.00

European Small Cap Value Fund

Investment aims To provide an attractive rate of return, measured in Euro, by investing in the common stocks of small to medium sized European corporations that the Company believes to be undervalued relative to the stock market in general at the time of purchase.




Change in net asset value per share For the SIX months ended 30 June 2002

0.77% 0.46% (0.11)% (4.841% 1

0 n. ...... .Lir. ._ B . . .

-1 .. -. ................ ............................................. ...

-2 .... .- .... .- .

-3 ............... ................................................................... ...

4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . _- .. .... -5 -




MSCl European Small Cap Index (expressed in Euro) .

United Kingdom PHS Group Cattles SSL International Luminar Mentmore Abbey HMV Group Johnston Press LEX Service SIG Tate & Lyle Novar Devro Kensineton Group Spirax-Sarco Engineering Ultra Electronics Holdings Alliance Unichem William Hill Michael Page International Travis Perkins Selfridges Xstrata Trinity Mirror SMG British Vita NHP Bunrl Regent Inns NHP Rights

Total for United Kingdom .- __ __-_._ ......

Netherlands IHC Caland CSM Nutreco Holding Samas-Groep 'CVA New Skies Satellites BE Semiconductor Industries lmtech Stork Buhrmann OPG Grow Boskalis Westminster Head

Total for Netherlands ........

Germany Grenkeleasing Techem Hugo Boss Pfd Beru MPC Munchmeyer Petersen Capital Pteiffer Vacuum Technology Fresenius Pfd Gerry Weber International Medic I i n Escada WMF Wuerttembergische Metallwarenfabrik Pfd Sartorius Marseille-Kliniken Kamps Dyckerhoff Pfd Ceyoniq (1)

Total for Germany

854,454 188,224 167,548 60,357

431,452 266,800 11 3,444 84,420

134,369 11 1,999 279,909 477,115 185,153 88.692 85,934 56,944

130,900 190,625 29,346 96.000 32,584 65,680

203,842 81,127

273,519 20,658 31,700 84,982

17,818 38.274 26,441

128,476 93,400 30,070 56,613 57,006 7,798 7,806

70,218

75,878

1,292,436 2.05 958.701 1.52 924,847 1.47 767,159 1.22 679.246 1.08 656,811 1.04 654,858 1.04 622.827 0.99 611,808 0.97 606,758 0.96 602.678 0.96 585.590 0.93 579,553 0.92 575,563 0.91 572,985 0.91 544,921 0.87 535,402 0.85 466,311 0.74 456,566 0.73 431,550 0.69 427,230 0.68 415,259 0.66 393,276 0.63 324,935 0.52 319,790 0.51 165,482 0.26 65,318 0.10 17,052 0.03

24.24

1,078,880 1.71 931,206 1.48 911,686 1.45 651,033 1.03 648,804 1.03 646,328 1.03 638,988 1.02 582.548 0.93 532,436 0.85 338,823 0.54 256,349 0.41 225,400 0.36

44,183 48,517 33,747 11,679 37,014 14,983

7,238 33,330 84,288 16,952

21,760 28,796 19,263 13,412 2,691

43,360

11.84

651.699 1.04 640,424 1 02 632,756 1.01 621.323 0.99 592,224 0.94 566,357 0.90 390,852 0.62 334,967 0.53 311,023 0.49 304,966 0.48

289,408 0 46 258,588 0.41 178,183 0.28 166,979 0.27 38,078 0.06

0 0.00

9.50 _ . . . . .

European Small Cap Value Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Market value

96 of net assets

Market X of net H o I d I n g value assets Investment

Italy Davidp Campari-Milano Parmalat Finanziaria Interpump B u n Unicern Cassa di Risparmio di Firenze Arnold0 Mondadori Editore Sogefi Saes Getters 'RNC' Saes Getters

Total for Italy .-

Investment Holding .- . . . . . . . . .

Finland (continued) Metso Kone '0 Rapala VMC

38,283 254,245 183,364 79,328

483.771 92,901

146,695 42.092 26,317

1.282.481 795,787 773,796 674,288 647,286 623,366 314.661 282,858 234,221

2.04 1.26 1.23 1.07 1.03 0.99 0.50 0.45 0.38

45.067 17,805 24,200

590,378 0 94 534,150 0 85 95,590 0 15

4.99 _. .-

Total for Finland

Denmark Danisco 24,527 Kobenhavns Lufthavne (Copenhagen Airports1 8,770

Total for Denmark ............ .......

908,003 1.44 684,759 109

8.95 2.53

France Neopost Zodiac Unibail Klepierre Boiron Alliance & Gestion Commercial IAlgecoI Bacou Oalloz Chargeurs Coface Kaufman & Broad

22,313 27,504

899,214 682,099 663,125 640,965 640,160 623,240 617.760 436,914 65,540 56,445

.- . - . . __ __

1.43 1 .OS 1.05 1.02 1.02 0.99 0.98 0.69 0.10 0.09

Norway Gjensidige NOR Sparebank Storebrand

21,059 789,969 1.26 16.937 103,758 0.16

10,610 5,190 8.002 6,987 5,616

16.182 1,086 2,702

Total for Norway 1.42

17,377 788,047 1 2 5 Belgium Omega Pharma

Total for Belgium 1.25

18.538 645,122 1.03 Austria Flughafen Wien

Total tor France 8.45

Switzerland Valora Holding Edipresse Bearer Galenica Holding Regd ' B liificon Holding Converium Holding Zehnder Group ' E Saurer Regd ESEC Holding Regd Temenos Group

4,409 956,958 1,599 641,893

650 614,738 5,887 600.824

963 570,698 13,583 406,640 2,135 233,876

20,290 101,469

11,219 587,006

1.52 1.02 0.98 0.95 0.93 0.91 0.65 0.37 0.16

Total for Austria 1.03

50,150 451,350 0.72 Ireland Green Property

0.72

59.685.819 94.86

62,920,351 100.00

.

..

Total for Ireland

Total Investment Securities

Total NAV

..-. .

- . . .

Total for Switzerland 7.49 I11 This security is valued at its fair market value

1239,710 1 9 7 740,400 1.18 715,124 1.14 592,096 0 94 345,116 0.55 329,904 0.52 149,961 0 24

6.54 _-

Sweden Swedish Match 148,049

Esselte 'B 73.756 Hoganas '6 27,141 lntrum Justitia 59,100 D. Carnegie & Co 37,428 Haldex 11,887

Total for Sweden

Getinge '6 37,333

-. .............

Spain Aurea Concesiones de lnfraestructuras del Estado Regd Red Electrica de Espana Metrovacesa Aldeasa Miquel Y Costas Viscofan Envolturas Celulosi Amadeus Global Travel Distribution 'A'

Total for Spain

1.25 1.02 0.94

0.83 0.83

34,080 792,360 58,526 640,860 28,090 589,047 32,115 521,548 17,237 520,557 42.448 331,094 49,915 323,449

...

0.53 0.51

5.91

Finland KCI Konecranes International Uponor Vacon

19,725 670,650 1.07 29,773 625,233 0.99 58,323 624,056 0.99

European Value Equity Fund

Investment aims Statement of investments To seek long term capital growth, measured in Euro, through investment in the equity securities of European companies listed on European Stock Exchanges.



Investment . ~.

Market % of net H o I d I n g value assets

. United Kingdom GlaxoSniithklitie Shell Transport & Trading Vodafone Group Allied Domecq British American Tobacco Lloyds TSB Group Reed Elsevier Barclays BAE Systems Rentokil Initial CGNU Hays SSL International HSBC Holdings Cadbury Schweppes William Hill PHS Group Smiths Group Reckitt Eenckiser WPP Group BP EOC Group Sainsbury (J) Imperial Tobacco Group Centr ica Scottish & Southern Energy Rolls-Royce GUS Lattice Group lnvensvs

1,440,006 3,798,900

13,690,074 2,163,780 1,272,090 1 , I 36,100 1,139,660 1,133,940 1.687.850 1,936.150

906,800 3,074,130 1.205.495

530.910 806,047

1,297,335 2,954,247

294,142 2 12,840 444,110 443,840 239,893 684,981 233,959

1.1 79,537 361.574

31.516.260 29,023,996 19,017,019 14,369,052 13,847,077 11,450,485 10,967,456 9,661,027 8,727.157 7,978,925 7,382,919 7,306.966 6,654,205 6,182,645 6,114.740 5,306,304 4,468,554 3.868.038 3,866,552 3,797.471 3,774,61 I 3,772,992 3,763,766 3,744.662 3,695.743 3.621.896

4.13 3.80 2.49 1.88 1.8? 1.50 1.44 1.27 1.15 1.05 0.97 0.96 0.87 0.81 0.80 0.70 0.59 0.51 0.51 0.50 0.50 0.50 0.49 0.49 0.48 0.48

(7.13% (7.37) % (13.99)%

-8

-1 0

-12 . .. . .... . ... .... . . . . . . . .. . . . .

14



Fund (net of expenses) Class B shares '

MSCl Europe (Net) Index (expressed in Euro)

1,417,448 3,544,184 0.47 373,197 3,470,478 0.46

1,272,597 3,358,777 0 44 1,243,000 1,707,479 0.22


France TotalFinaElf '8' Aventis Groupe h o n e Neopost Schneider Electric Compagnie de Saint-Gobain Crkdit Agricole Unibail Pernod-Ricard Vivendi Universal

Total for France

171,263 385,910

79.589 243.300 143,468 166,080 319,946 85,358 40,830 48,460

28,155,637 27,689.043 11,078,789 9,804,990 7,811,833

7,198,785 5,334,875 4,050.336 1,060.305

7.548.336

3.6Y 3.63 1.45 1.29 1.03 0.99 0.94 0.70 0.53 0.15

14.40

Switzerland Nestle Rcgd UBS Regd Holcim ' E Converium Holding Schindler Holding Syrigenta Roche Holding 'GenuOschein' Novartis Regd Compagnie Financiere Richemont 'A'

110,799 373,790 30.917

26,159,374 19,036,255 7,183,731 6.921.951 6,841,250 6,807,720 6.528.565 3,878,154 3,572.173

3.43 2.50 0.94 0.91 0.90 0.89 0.86 0.51 0.47

132.294 37,240

111,856 85,291 87.087

155,100


Netherlands IHC Caland Koninklilke KPN Unilever 'CVA' Koninklilke Philips Electronics ING Groep Akzo Nobel Koninklilke Ahold

155,730 9,429,452 ,747,730 8,284,240 115,030 7,626,489 269,486 7,618,369 289,038 7,514,988 162,969 7,185,303 335,385 7,143,701

1.24 1.09 1 .oo 1 .oo 0.99 0.94 0.94

1

European Value Equity Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Market 46 of net Investment Holdlng value assets

Netherlands (continued) Vedior 'CVA 507,156 7,100.184 0 93 CSM 291,021 7,080,541 0.93 Buhrmann 703,701 6,572,567 0.86


. . . . -. . ..

. . .- - -. .- . .

Italy EN1 Snam Rete Gas Partnalat Finanziaria UniCredito ltaliano Telecom ltalia 'RNC' Arnoldo Mondadori Editore Telecotn ltdlta Ielecom ltalia Mobile

Total for Italy _. . . . .- ... .

744,905 3,838.670 2,075,200 1,228,080 1,026,000

552,100 442,456 814,910

11,992,971 11,477,623 6,495,376 5,624,606 5,509,620 3.704.591 3,508,676 3,381,877

1.57 1.51 0.85 0.74 0.72 0.49 0.46 0.44

6.78

Germany Muenc h e w Rueckverstcherungsgcscllschaft Regd 50.789 17.189.360 1.59 Deutsche Barik Rcgd 111,740 7,866,496 1.03 Oeutsche Post Regd 562,560 7,363,910 0.97 Fresentus Pfd 115,161 6,218,694 0.82

Total for Germany 4.41 . . .

Sweden Svenska Handelsbanken 'A' Swedish Match FureningsSparbankcn Nordea

Total for Sweden

731,012 11,316,236 1.48 938,330 7,857,246 1.03 407,605 5,231.986 0.69 936,835 5,161,005 0.68

3.88 ~

Spain Banco Popular Espanol 165,540 7,411,226 0.97 Amadeus Global Travel Distribution 'A' 1,109 880 7,192,022 0.94 FndCSa 357,084 5,252,706 0 69 Tplpfonica 568,313 4,830,661 0.63


Noway Glensidige NOR Sparebank 164,880 6,185,011 0 81 Tclenor 1,581.71 5 5577,245 0 75 Slaloil 530,530 4,796,368 0 63

Total for Norway 2.19 .

Belgium Fortis 354,090 1,641,262 1 00 Solvay 82,777 6,034,443 0.79

Total for Belgium 1.79 ._

Fin I and Sampu 'A 885,975 6,999,202 0 92 Nokid 'A' 405,175 6,004.694 0 79

Total for Finland 1.71 __ _- .


Portugal Brisa-Auto Estradas de Portugal 381.100 2,172 270 0.29

- .-. . . .. -

~. . .


Total Investment Securlties 714,239,698 93.73

Total NAV 762,014,335 lw.w -. . . . .. . . .

Denmark Danisco 195,388 7,233,374 0.95 Danske Bank 200.300 3.134.574 0.49


Global Brands Fund Investment aims To seek an attractive long term rate of return, measured in US Dollars, through investment principally in equity securities of companies in the world's developed countries. The Fund will invest in a concentrated portfolio of companies whose success the Company believes depends on intangible assets underpinning a strong business franchise.

Change in net asset value per share For the six months ended 30 June 2002 - .

(8.82)% -

16.42% 16.08% 15 57% 20

.4 . . . ........................

.8 ~

..


El Fund (net of expenses) Class A shares


MSCI World (Net) Index (expressed in US dollars) .. . __ -



United Kingdom Reckitt Benckiser 1,498.622 26,885,912 7.97 Cadbury Schweppes 3,067,146 22.97a.103 6.82 British American Tobacco 1,814,131 19,494,584 5.79 Allied Domecq 2,517,823 16,512,099 4.90 Imperial Tobacco Group 907,613 14.761.189 4.38 Diageo 896,635 11,644,249 3.46 SMG 4,276,375 8,147,831 2.42 WPP Group 955,145 8,065,574 2.39 Reed Elsevier 660,172 6,274,076 1.86 Imperial Tobacco Group 'New' 244,085 3.858.123 1.14 Capital Radio 327,400 3,156,425 0.94 Ulster Television 277,281 1,5a4,92i 0.47


-. ..

. _. ..... -. ..... _-

United States of America Kimberly-Clark 239.446 14,845.652 4.40 New York Times 'A' 287,094 14,785,341 4.39 Brown-Forman '6 non-vtg 208.946 14,417,274 4.28 Philip Morris 239,295 10,452,406 3.10

159,247 8.91 7,832 2.65 Fortune Brands

Total for United States of Amerlca 18.82 -- .. __ .

Switzerland Nestle Regd 66,575 15,522,610 4.61

1.97 Compagnie Financiere Richemont 'A' 292.000 6.641.492

Total for Switrerland 6.58 -~ ... . . . . . .

France Groupe Danone Pernod-Ricard

102,545 14,096,646 4.18 61,019 5,977,765 1.77


Italy Davide Campari-Milano 491,124 16,247.930 4 82

Total for Italy 4.82 ._ -. ..

Sweden Swedish Match 1,829,038 15,125 145 4 49

Total for Sweden 4.49 . . -- _ _

Finland Kone '6 456,884 13,535,967 4 02 Rapala VMC 15,710 61,282 0 02

. -.


Spain Zardoya-Mis 819,754 10,848,019 3.22

Total for Spain 3.22 ... ._ .

Canada Torstar 'B' 477,848 7,571 922 2 25

Total for Canada 2.25


Total NAV 336,979,277 1w.00

- - - __ ...

_ -

_ _ _ - .~

Global Small Cap Value Fund

investment aims To provide an attractive rate of return, measured in US dollars, by investing in the common stocks of small to medium sized corporations that the Company believes to be undervalued relative to the stock market in general at the time of purchase.


. .

4.55% 4.27% 3.87% 0.46% . . .. .. ... . 5 .. ..... . . .. . ...... .. . . . ... . .. .... . .. . . .. . .. . . .

4

3

2 -

1 -

0

-

.




3% MSCl World Small Cap Index (expressed in US dollars)




United States of America Pinnacle Systems Superior Industries International NBTY SClOS Constellation Brands 'A' GATX Fresh Del Monte Produce Caremark Rx Potomac Electric Power CBRL Group Pogo Producing Flowserve Mercantile Bankshares Hawaiian Electric Industries Equitable Resources Associated BancCorp Navistar International Provident Financial Group KB Home Telik Trimeris Hibernia 'A' United Bankshares Bowater Texas Industries Pittston Brink's Group XTO Energy Transkaryotic Therapies Tetra Tech Varian Medical Systems Gtech Holdings Varian BorgWarner Reinsurance Group City National Stage Stores AMB Property Cephalon Boise Cascade InterMune Apria Healthcare Group Linens 'n Things General Growth Properties Affiliated Managers Group Universal Health Services '6 Urban Ouffitters Covance Ikon Office Solutions Toll Brothers Quiksilver Polaris Industries Everest Re Group Reynolds &Reynolds 'A' Wabash National Allied Waste Industries Viad Electronics Boutique Foot Locker Great Plains Energy Peabody Energy MDC Holdings FMC United Dominion Realty Trust New York Community Bancorp Banknorth Group Steris US Freightways Tower Automotive Borders Group

56.100 8,500

25,000 10,300 9,800 9,100

10,400 15,500 11,700 7,600 7,100 7,700 5,500 5,300 6,500 5,840 6,800 7.500 4,200

16,500 4.600

10,300 6,900 3,600 6,100 8,000 9,300 5,200

12.700 4,600 7,300 5,500 3,100 5,800 3.300 5,100 5,700 3,900 5,100 8,300 7,800 5,300 3,400 2,800 3,500 4,900 9,000

17.500 5,600 6.600 2,500 2,900 5,800

16,000 16,400 6,100 5,300

10,700 7,500 5,300 2.860 4,900 9.300 5,400 5,600 7,600 3,800

10,200 7,700

616,483 393.125 387,000 315,283 313,600 273.910 260,000 255,750 251,316 231,952 231,602 229,460 225,665 225,515 222,950 220,226 217,600 217,575 216,342 206,250 204,194 203,837 202,722 195,732 192,089 192,000 191,580 187.460 186,690 186,530 186.442 181,225 179,056 178,756 177,375 177,174 176,700 176,280 176,103 175,130 174,720 173,893 173,400 172,200 171,500 170,128 168,750 164,500 164,080 163,680 162,500 162,255 162,110 160,000 159.244 158,600 155,290 154,615 152,625 149,990 148,720 147,833 146,475 146,340 145,712 145,236 143,906 142,290 141,680

0.86 0.55 0.54 0.44 0.44 0.38 0.36 0.36 0.35 0.32 0.32 0.32 0.32 0.32 0.31 0.31 0.30 0.30 0.30 0.29 0.29 0.29 0.28 0.27 0.27 0.27 0.27 0.26 0.26 0.26 0.26 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.23 0.23 0.23 0.23 0.23 0.23 0.22 0.22 0.22 0.22 0.22 0.21 0.21 0.21 0.21 0.21 0.21 0.20 0.20 0.20 0.20 0.20

Global Small Cap Value Fund


Investment ~

United States of America (continued) OGE Energy Wellman Protein Design Labs Horace Mann Educators St. Mary Land &Exploration Genesco Freeport-McMoRan Copper & Gold '6 Manitowoc BrooksPRI Automalion Arkansas Bent J. Jill Group 3Com Tidewater GameStop Christopher 8, Banks Titan AK Steel Holding AGCO Standard-Pacific FirstMerit Silicon Storage Technology Avnet Furniture Brands International American Financial Group Republic Baricorp Swift Transportation Pharmaceutical Product Dcveloprrierit Cunimins Engine CV Therapeuthics Varian Semiconductor Equipment Associates BRE Properties 'A' Meristar Hospitality Chesapeake Energy Therasense Robbiris &Myers Goodrich The Rouse Company Cumulus Media 'A Pacific Sunwear of California PS Business Parks Compass Bancshares Axcelis Technologies Scholastic Fulton Financial HPL Technologies Storage Technology Conceptus Advanced Neuromodulation Systems Fleming Companies Webster Financial dELiA's 'A' Respironics Reckson Associates Realty Dora1 Financial Camden Property Trust Grey Wolf Providian Financial Eerkley (W.R.) Powerwave Technologies RailAmerica FelCor Lodging Trust Kulicke & Soffa Industries Ohio Casualty Ktlrov Realty Federal Agricultural Mortgape 'c' Protective Life Cell Genesys Solutia

H o I d i n g

6,100 8.300

12,700 7,300 5,600 5.500 7,400 3,700 5,100 5,100 3,400

29,300 3,900 6,100 3,000 6,800 9,700 6.300 3,500 4,400

15,400 5,400 3,900 4,900 7.800 5,000 4,400 3,500 6,200 3,400 3,700 7.500

15,800 6.000 4,200 4.000 3,300 7,900 4.900 3,100 3,200 9.500 2,800 5,600 7,000 6,600 6.300 3,400 5,700 2,700

20,200 3,000 4,100 3,000 2.700

24,400 16,900

1.800 10.800 9,000 5,300 1.800 4,600 3,500 3,500 2,800 6,700

12,800

Market value

139,446 139,025 137,922 136,291 134,002 133,925 132,090 131,313 130,356 129,948 129,030 128,920 128,388 128,039 126.900 124,372 124,257 122,850 122,780 121,352 170,120 118,746 117.975 117,110 116,532 116.500 11 5,896 115,850 11 5,444 115,362 115,107 114,375 113,760 110,820 110,250 109,280 108.900 108,862 108,633 108,345 107,520 107,350 106,120 106,008 105,420 105,402 103,887 103.700 103.455 103,248 103,020 102.150 102.090 100,170 99,981 99.796 99,372 99,000 98,928 97,380 97,255 96,642 96.140 93,625 93,450 92,680 90,376 89.856

% of net assets

0.20 0.19 0.19 0.19 0.19 0.19 0 19 0 18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.1 7 0.16 0.16 0 16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0 15 0.15 0.15 0 15 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.13 0.13 0.13 0.13 0 13 0 13

Investment

United States of America (continued) SkyWest WGL Holdings Energen Georgia Gulf Charlotte Russe Holding Hutchison Technology Prentiss Properties Trust Arden Realty Regeneration Technologies Tibco Software Argosy Gaming Cabot Microelectronics ldec Pharmaceiiticals Rowan Companies Mentor Graphics Universal Qowney Financial Valassis Communications Grafrech lnternational Cullen/Frost Bankers AGL Resources Corinthian Colleges York International Secure Computing Gart Sports Coventry Health Care Trizec Properties PNM Resources OS1 Pharmaceuticals Barnes &Noble ATMl Key Energy Services Coinstar Sandisk Priority Healthcare ' B Pall Macromedia Shurgard Storage Centers 'A' Independence Community Bank Mykrolis Standard Microsystems Adaptec Sovereign Bancorp Tuesday Morning Cytec Industries lntersil 'A' Western Digital Quinton Cardiology Systems Photronics Weingarten Realty Investors Medcath CNF Midwest Express Henry (Jack) &Associates Whole Foods Market Philadelphia Suburban Mid Atlantic Medical Services Regency Centers Fisher Scientific International Edwards Lifesciences LifePoint Hospitals Pozen Werner Enterprises GSI Commerce Network Associates Nautilus Group Colonial BancGroup Computer Program & Systems

-. H o I d i n g

. .

3,800 3,400 3,200 3.300 3,900 5,500 2,700 3.000

14,100 14,900 2.900 1,900 2,300 3,800 5,700 2,200 1,700 2,200 6.500 2,200 3,400 2,300 2,300

10,200 2,700 2.700 4,500 3,100 3,100 2.800 3,300 7,000 3,000 5,900 3.100 3,500 7,900 2.000 2,400 5.800 2.900 8,600 4.500 3.600 2,100 3,076

20.200 7,000 3.300 1,750 3,600 1,600 4,500 3,500 1.200 2,800 1,800 1,900 2.000 2.400 1.500

10,500 2.533 7,100 2,700 1,700 3,400 2.300

Market value

X of net assets

88,882 88,060 88.000 87,252 87,087 86,020 85,725 85,350 85,164 82,844 82,360 82,004 81.535 81,510 81,054 80.740 80,410 80,300 79.950 79,090 78,880 77,947 77,717 77,010 76,923 76.734 75.870 75.070 74,462 74,004 73.821 73.500 73,350 73,160 72.850 72,625 70,073 69.400 68,952 68,498 68,469 67,854 67,275 66,816 66.024 65,765 65,650 63,420 62.502 61.950 61,560 60,768 59.400 58.415 57,864 56.560 56.558 56,335 56,000 55.680 54,465 54,390 53,978 52,895 52,029 52,020 51,000 49,519

0.12 0.17 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.1 1 0.11 0.11 0.11 0 11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.10 0.10 0.10 0.10 0.10 0.10 0 10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.08 0.08 0.08 0 08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.07 0.07 0.07 0.07 0.07

Global Small Cap Value Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment ..

United States of America (continued) LTX Cynier Andrew Rainbow Technologies Genzyme - General Division ChipPAC ' A Peoples Energy lmpax Laboratories Aeroflex Yellow IC05

Kyphon United States Steel Quantum - DLT & Storage Systems R.H. Donnelley Harmonic In Educational Services Atlantic Coast Airlines Holdings Sky Financial Group Pan Pacific Retail Properties Abgenix Vitesse Semiconductor Skyworks Solutions Astec Industries Conexant Systems DMC Stratex Networks First Midwest Bancorp Sonic Cambrex Transwitch Trustmark Trizec Properties 'CTF' Rock-Tenn 'A' Dimon

Market % of net Holding value assets

3,300 47,124 1.300 45.552 3,100 44,423 9,000 44,280 2,300 44,252 7,100 43,878 1,200 43.752 5,800 43.442 6,100 42.395 1,300 42,120 2,400 40,704 2.600 37,908 1,900 37,791 8,400 35.280 1,200 33,564 9,100 33,297 1,500 32,700 1,500 32,550 1,500 30,893

900 30,762 3,000 29,400 8,000 24,880 4.177 23.182 1,300 20,917

12,300 19.926 8,300 16,683

500 13,650 400 12,564 300 12,030

14,000 8,960 300 7.665 45 1 7,622 400 7,340

1,000 6.920 ..

Total for Unlted States of America

Japan Asatsu-Dk TOC Nitta Osaki Electric 2eon Jaccs Fukuda Denshi Stiinkawa Shirnano Aiful Cosel Sumitomo Osaka Cement Tenma Nicliiha Daibiru Nippon Broadcasting System Pacific Metals IT0 En Taiyo Ink Manufacturing Yomiuri Larid Osaka Steel Asia Securities Printing Megane Top Hurxley Ariake Japan Mirai Industry Maezawa Kasei Industries Shidax Arisawa Manufacturing Tokyo Kikai Seisakusho

39,900 149,000 79,000

135,000 114,000 148.000 21,600 21.800 33,500 6,700

20,600 262,000

34,000 38,200 61.000 9,000

388,000 7.900 8,000

116,000 57,900 46.000 13,100 17,000 6.300

33,700 20,100

157 9.700

67,000

868.839 677,499 651,193 529,368 466,995 464.275 455,932 455,607 454,455 439,363 439,121 389,087 385,216 344.202 330,803 330,385 323,711 299,232 297,681 278.725 258,439 251.377 245,365 243,951 241,782 227.741 213,141 212,198 201.510 185,024

0.07 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0 02 0.01 0.01

..

38.25

1.22 0.95 0.91 0.74 0.65 0.65 0.64 0.64 0.64 0.62 0.62 0.55 0.54 0 48 0.46 0.46 0.45 0.42 0.42 0.39 0.36 0.35 0.34 0.34 0.34 0.32 0.30 0 30 0.28 0.26


Japan (continued) Nissei 27.200 184,949 0.26 Tomy 4,400 53,082 0 07 Yamaichi Electronics 4,000 49,391 0.07 Tasaki Shinju 16,000 46,988 0.07

.. ...

. .. . . - . . . . __ Total for Japan

United Kingdom PHS Group Cattles HMV Group Luminar Spirax.Sarco Engineering Devro SSL International SIG Michael Page International Novar Mentmore Abbey Alliance Unicherri British Vita SMG Xstrata William Hill Kensington Group Regent Inns

325,200 86,400

175,230 32,400 62,930

332,400 73,140 86,160

153.851 166,173 222,530 34,877 76,530

119,028 14,700 45,600 57.000 24,900

485,772 434,594 426.015 406,691 403,300 402,897 398,701 387,422 371.671 353,338 345,975 329,127 302,709 226,786 190,343 184.190 176,197 50,668

16.11

0 67 0.61 0.60 0.57 0.57 0.56 0.56 0.54 0.52 0.50 0.48 0.46 0.42 0.32 0 27 0.26 0.25 0.07


Netherlands CSM IHC Caland Nutreco Holding lmtech Buhrmann OPG Groep Samas-Groep 'CVA' Stork BE Semiconductor Industries Head

28,830 11,105 17,492 19,540 31,422 5,000

23.456 18,900 17.830 15.191

692,706 664,041 595,619 410,058 289,830 214.547 198,748 192.061 121.848 48,156

0.23

0.97 0.93 0.83 0.57 0.41 0.30 0 28 0 27 0.17 0.07

Total for Netherlands

Germany Beru Techem Fresenius Pfd Kamps MPC Munchmeyer Petersen Capital Sartorius Pfd Escada Hugo Boss Pfd WMF Wucrttembergische Metallwarenfabrtk Pfd Marseille-Kliniken Mediclin Pfeiffer Vacuum Technology Dyckerhoff Pfd Ceyoniq (1) SCS Standard Computersysteme

Total for Germany

Sweden Swedish Match Esselte '6 Getinge '8' Hogarias 'B' Haldex

8.419 25,761 4,830

16,505 12.200 32,875 9,567 9,000

12,553 17,903 43,405

3,430 7,080

38.490 1,795

442,318 335,814 257,575 202,930 192.771 178,563 169.969 166,650 164,877 163,542 158,171 128,041 98,935

0 0

102,220 58.400 21,510 13.720 17,710

845,304 559,189 421,285 295,585 220,642

4.80

0 62 0.47 0.36 0.28 0.27 0.25 0.24 0.23 0.23 0.23 0.22 0.18 0.15 0.00 0.00

3.73

1.18 0 78 0.59 0.41 0.31

Global Small Cap Value Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


Sweden (continued) D Cdrnegie & Co 17,400 151,462 0 22


.. - . .-

~ .- .. - -

Italy Davide Campari-Milano Buzzi Unicem Parmalat Finanziaria Cassa di Risparmio di Firenze Sogefi Saes Getters 'RNC' Saes Getters

Total for Italy

Switzerland Valora Holding Edipresse Bearer Galenica Holding Regd 'B' Zehnder Group '0 Converium Holding Saurer Regd Temenos Group

Total for Switzerland - . -

France Neopost Alliance & Gestion Commercial Zodiac Chargeurs Coface Kaufman & Broad Europeenne D'Extincteurs (11

Total for France

Finland Uoonor

28.577 49,260

133,000 222,450

95,140 13,700 8,100

.. .. . -~

945,417 1.32 413.500 0.58 411,110 0.58 293,935 0.41 201,536 0.28 90,918 0.13 71,193 0.10

3.40 . .

2.330 499,426 0 70 1,190 471.762 0.66

454 424,028 0.59 713 417,284 0 58

2,800 144,680 0.21 4,630 136,886 0.19

46,152 0 07 9,345

3.00 . .~

21.090 839,351 4,645 409.178

13.580 332,593 8,373 223.258 3,593 2 14,139 4,830 99,643

10,591 0 .

1.18 0.57 0.47 0.31 0.30 0.14 0.00

2.97

21,180 439,246 0.62 KCI Konecranes International 11,337 380,662 0.53 Kone ' B 12,063 357,387 0.50 Rapala VMC 62,823 245,063 0.34 Metso 15,609 201,934 0.29

Total for Finland 2.28 .

New Zealand Sky City 139,224 419.251 0.59 Fisher & Paykel Healthcare 91,466 366,507 0.51 Fletcher Building 264,748 353.617 0.50 Fisher & Paykel Appliances Holdings 30,792 137,592 0.19

.

Total for New Zealand 1.79

Spain Miauel Y Costas 17,855 532,511 0.75 Aurea Concesiones de lnfraestructuras del Estado Regd 20,900 479,879 0.67 Amadeus Global Travel Distribution 'A' 39,510 252.839 0.35

Total for Spain 1.77 -. .. .-

Market % of net Investment Holding value asset8

.. - . -. --

Denmark Danisco Kobenhavns Lufthavne

12,600 460,655 0.64 5,820 448,770 0.63


Norway Gjensidige NOR Sparebank 16 590 614.584 0 86

19,400 11 7,367 0 17 Storebrand

Total for Norway 1.03 - -

Belgium OmeRa Pharrna 11,626 520,678 0.73

. . . .. ~. Total for Belgium 0.73

Hong Kong Asia Satellite Telecommunications 289,000 477.965 0.67

Total for Hong Kong 0.67 . . . -- - .

Bermuda Scottish Annuity & Life Holdings 8,700 165,996 0.23 PartnerRe 3,100 151.745 0 22

.. -- Total for Bermuda 0.45

Canada Precision Drilling 3,700 128,538 0.18 Alliance Atlantis Communications 'B 7,600 94,240 0.13

3.948 63.572 0.09 Trizec Canada

Total for Canada 0.40 .. --

Ireland Green Property 30,140 267,885 0.38

0.38


Total NAV 71,380.059 100.00

-. - - -

- Total for Ireland -. -

- .- .. -- ~ ~-

(1) This security is valued at its fair market value

Australia Neverfail Springwater 3 16,500 438,838 0.61 John Fairfax Holdings 218,800 406,545 0.57 Ramsay Health Care 63.620 149.995 0.21

.. ..- ... .. . - - Total for Australia 1.39

Global Technology Fund

Investment aims To seek long term capital appreciation, measured in US dollars, through investment primarily in listed equity and equity linked securities qualifying as transferable securities of technology- related companies worldwide.

Change in net asset value per share For the SIX months ended 30 June 2002

-.. -.

(39.021% (39.011% (39.361% (30.081% 0

-5

-10

-1 5

-20

-25

.30

-35 .

~- ~. 40 -




Gx MSCl World IT Index (expressed in US dollars) .. ~.


Investment ~ . ..

Semiconductors Intel lntersil 'A' Texas Instruments Xiltnx STMicroelectronics 'NY' Integrated Device Technology Altera Linear Technology Analog Devices LSI Logic Maxim Integrated Products Microtune Broadcom 'A' TriQuint Semiconductor Vitesse Semiconductor Cypress Semiconductor Marvel1 Technology Group Skyworks Solutions Conexant Systems Agere Systems 'A' TranSwitch Agere Systems 'B'

Total for Semiconductors . -

Systems Software Microsoft Veritas Software Oracle Computer Associates International Adobe Systems Symantec

Total for Systems Software -

Networking Equipment Cisco Systems Emulex Brocade Communications Systems Extreme Networks Finisar Redback Networks

Total for Networklng Equipment - -

Telecommunications Equipment Motorola Nokia ADR Qualcomm JDS Uniphase Ericsson ADR ' E ADC Telecommunications Ciena Lucent Technologies Sonus Networks

Holding Market 96 of net

value assets

148,350 60,900 32,200 31,300 27,050 36,250 44,300 13,200 12,250 38.100

7,550 29,950 15,100 32,550 63.850 12,900 7,000

22,990 65,500 55,337 43,000 10,741

2,710,355 6.96 1,302,042 3.34

763,140 1.96 702,059 1.80 658,127 1.69 657,575 1.69 602,480 1.55 414,876 1.06 363,825 0.93 333,375 0.86 289,392 0.74 266,855 0.68 264.854 0.68 208,646 0.54 198.574 0.51 195,822 0.50 139,230 0.36 127,594 0.33 106,110 0.27 71,472 0.20 27,520 0.07 16,112 0.04

26.76

70,900 3.878230 9.95 31,475 622,890 1 60 51,050 483,444 1 24 23,900 379,771 0.97 10,100 287,850 0 74 6.300 206,955 0 54

15.04 . -- ~.

130,700 1,823.265 4 68 26,300 592,013 1.52 19,750 345,230 0.89 24,450 238,876 0 61 67,550 160,094 0.41 32,250 57,727 0 15

8.26 .-

66,600 47,250 21,400 55,600 87.800 49,800 24,366 40,600 17,000

960,372 684,180 588,286 148,452 126,432 114,042 102,094 67,396 34,340

2.46 1.76 1.51 0.38 0.32 0 29 0.26 0.17 0.10

Total for TelecommunieaGons Equipment 7.25

Electronic Equipment & Instruments QLogic 26,100 994,410 2.55 Kopin 11 3,600 749,760 1.92 Celestica NPR sub ord vtg shs 13,200 299,772 0.77 Flextronics International 36.500 260,245 0.67 Micrel 11,400 163,932 0.42 Jabil Circuit 7,200 151,992 0.39

Total for Electronic Equipment & Instruments 6.72 -. .- . .

Global Technology Fund


Investment

Application Software Intuit BEA Systems SAP ADR Pfd Mercury Interactive Rational Software lnformatica Quest Software Siebel Systems Warp Solutions E

Total for Application Sonware ~

Biotechnology Gilead Sciences lmmunex ldec Pharmaceuticals Exelixis Amgen C e I g e n e Regeneron Pharmaceutical Tularik

Total for Biotechnology

H o I d i n g

20.600 34.700 12,950 12.100 24,000 21,600 10,300 3,700

34,700

22,700 13,100 7,625

28.150 4,800 9.900 9.800

14,000

Market value

1,024,232 329.997 314.555 277,816 197,040 153.144 149,659 52,614

0

% of net assets

~

2 62 0.85 0.81 0 71 0 51 0.39 0.38 0 14 0 00

6.41 -~

746,376 292,654 270,306 21 1,969 201,024 151,470 142,198 128,380

-~

1.92 0.75 0.69 0.54 0.52 0.39 0.36 0.33

5.50

Semiconductor Equ ip "N Applied Materials 44 800 852.096 2.18 Novellus Systems 8.700 295.800 0 76 KLA . Tencoi 5,450 239,745 0.62 Lam Research 8 100 145,638 0.37

~

Total for Semiconductor Equipment 3.93

Computer Hardware Sun Microsystems 148,150 742,231 1.90 Dell Computer 23,500 614,290 1.58

Total for Computer Hardware 3.48 .. . -_

Computer Storage & Peripherals Network Appliaiire 40,500 503,820 1.29 EMC 59.200 446,960 1 1 5 Sandisk 21,300 264,120 0 68

Total for Computer Storage & Peripherals 3.12 -.

Internet Software & Services Yahoo! 26,150 385,974 0.99 Vignette 163,900 322,883 0.83 Tibco Software 33,150 184,314 0.47 Ariba 33,800 107,822 0.28 Check Point Software Technologies 5,650 76,614 0.20 . . .. . . __ Total for Internet Software & Services 2.77

Data Processing Services Concord EFS 20.800 626,912 1.60 Affiliated Computer Services ' A 5,300 251,644 0.65 Sabre Holdings 5,000 179,000 0 46

Total for Data Processing Services 2.71 .. . .-

Investment

Wireless Telecommunication Services Vodafone Group ADR China Telekom IHong Kong) ADR RF Micro Devices

Total for Wireless Telecommunication Services .. .. .. -.

Market X of net Holding value assets

..- -- .-

24,850 339.202 0.87 16,300 238,306 0.61 15,600 118,872 0 31

1.79 . - - ._

Diversified Commercial Services Corporate Executive Board 9,050 309,962 0.80 Apollo Group 'A' 1,800 70,956 0.18

Total for Diversified Commercial Services 0.98 .. .. -- .. . .

IT Consulting & Services Sungard Data Systems 8.250 218.460 0.56

Total for IT Consulting & SeNlCeS 0.56 ~. . - . - .

Health Care Equipment Bruker DaltoniLs 33 700 133,115 0 34

Total for Health Care Equipment 0.34


Total NAV 38,969,119 100.00

- - -~ -. .. . -

- - - __

Consumer Electronics Philips Electronics 'NY' Regd 25.750 710.700 1.82

Total for Consumer Electronics 1.82 ~. - --

Global Value Equity Fund

Investment aims Statement of investments To seek an attractive long term rate of return, measured in US dollars, through investment principally in equity securities of companies listed on the world's Stock Exchanges.


Change iri riet asset value per share For the six months ended 30 June 2002

Market 96 of net Investment H o I d i n g value assets

. - .._ ~

United States of America 0.94% 0.69% 0.16% (8.82)%

I

0

I A B 1

2

3

4

5

6

7 - -

. _ . ~

. _

_. a

Philip Morris J.P. Morgan & Co Motorola KimberlyClark Alcoa Pharmacia Albertson's Boise Cascade McGraw-Hill Companies Mellan Financial McDonald's Deere & Co Travelers Property Casualty ' A MBlA Verizon Communications St. Paul Companies Exelon SBC Communications BJ's Wholesale Club Merrill Lynch & Co. NCR International Business Machines MetLife Bristol-Myers Squibb Wyeth General Oynamics . - . . . .. -9




.. MSCl World (Net) Index (expressed in US dollars)

The Interpublic Group of Companies Sears Roebuck & Co. Northrop Grumman Principal Financial Group Luews - Carolina Gruup Georgia Pacific New York Times 'A'

. Prudential Financial Ford Motor Company Capital Trust II Pfd Stock 6 5% /2032 ChevronTexaco Delphi Automotive Systems Kroger First Data Tuppenvare Cadiz Sabre Holdings Hewlett-Packard ATRT Wireless Services Wells Fargo & Co. Goodrich The Gap

583,200 598,129

1,373,400 316,700 561,020 480,911 572,890 503,615 290,000 535,180 583,940 337,868 899,960 277,930 381.279 391,400 290,350 483,850 382,400 344,500 399,490 187,300 439,590 467,360 218.060 104,195 432,500 194.890 83,790

269,700 291,800 314,402 140.710 21 1,100

122,400 77,155

495,600 325,300 167,960 252,934 585,239 137,500 300,300 766.900 80,700

134,240 179,400

Total for United States oi America

United Kingdom BAE Systems Cadbury Schweppes Allied DOmeCQ GlaxoSmithkline WPP Group Vodafone Group Diageo Sainsbury (J) Lloyds TSB Group Rolls-Royce Imperial Tobacco Group CGNU BAA Prudential Imperial Tobacco Group

Total for United Kingdom .

5,586.800 3,409.070 3,587,160

807.000 1,797.517 9,727,700

969,901 1,751,245

870.200 3,193,800

477,540 890,170 754.000 705.527 183,736

25.474.176 20,288,536 19,804,428 19,635,400 18,597,813 18.01O.117 17,450,229 17,389.826 17,313,000 16,820,107 16,613,093 16.183.877 , ,

15,929,297 15,711,383 15,308,352 15,233,288 15,185,305 14.757.425 14,722,400 13,952,250 13,922,227 13,485,600 12,660.1 92 12.01 1,152 11,164,672

1.88 1.50 1.46 1.45 1.37 1.33 1.29 1.28 1.28 1.24 1 2 3 1.19 1 1 8 1.16 1.13 1.12 1.12 1.09 1.09 1.03 1.03 I .oo 0.93 0.89 0.82

11,081,138 0.82 10,708,700 0.79 io.5a2.527 0.78 10,473,750 0.77 8,360,700 0.62 7,893,190 0.58 7,728,001 0.57 7,246,565 0.53 7.042.296 0 52

6,885,000 0 51 6,828,218 0.50 6,541,920 0.48 6,473,470 0.48 6.248.1 12 0.46 5.258.498 0.39 4,973,946 0.37 4,922,500 0.36 4,588,584 0.34 4,486,365 0.33 4,039,842 0.30 3,667,437 0.27 2,547,480 0.20

41.06

28,527,528 2.11 25,539,692 1.89 23,524,903 174 17,442,389 129 15,178,854 1.12 13,344.702 0.99 12,595,726 0.93 9,502,833 0.70 8,661,407 0.64 7,886,403 0.58 7,766,590 0.57 7,157,340 0.53 6,884,214 0.51 6,452,397 0.48 2,904,218 0.21

14.29

Global Value Equity Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


......

Market I of net Investment H o I d i n g value assets

Denmark Dan i s c o 261,765 9,570.105 0 71

-

France Aventis TotalFinaElf 'B' Compagriie de Saint-Gobain Lafarge Groupe Danone Pernod.Ricard Credit Agricole

Total for France .._ .. . . . .

462,250 32,753,740 2.41 129,849 21,081,548 1.55 373,298 16,755,278 1.24 166,400 16,597,274 1.23 105,010 14,435,505 1.07 79.510 7,789,248 0.58

328,450 7,298,168 0.54


Norway Stat o i I 1,066 200 9,519,262 0 70

Total for Norway 0.70 _ _ ~ _ _

8.62

Singapore United Overseas Bank 1,057,000 7,598,076 0.56

402.000 1,921,000

3.228 385,000

4,306,000 794,000

2,000,000 1,329.000 1,477,000 1,055,000

573

15,193,225 13,398,598 13,277,190 12,430,753 11,963,107 10,797,764 8,977.140 8,615,326 7,948,148 6,821,500 3,312,940

1.12 0.99 0.98 0.92 0.88 0.80 0.66 0.64 0.59 0.50 0.24

Japan Canon Fujitsu Nippon Telegraph &Telephone Fuji Photo Film Tokyo Gas Sankyo Mitsubishi Electric Daiwa Securities Group Mitsui Sumitomo Insurance Hitachi Fuji Television Network

Total for Japan


Canada Potash Corporation Of Saskatchewan 110.525 7,376,085 0.54


48,300 6.631.590 0.49

South Korea Samsung Electronics GDR 1/2 commonshare - 144A

8.32 Total for South Korea 0.49

810,500 6.323.277 0.47 124,620 306.270 451,270 151.497 38,422

135.325 204,500

27,400

29,056,368 15,825,408 10,264,062 9,105,598 8,816.471 6,806,031 6,492,609 5532.471

2.14 1.17 0.76 0.67 0.65 0.50 0.48 0.41

6.78 ......

Switzerland Nestle Regd Converium Holding Compagnie Financiere Richemont 'A' Syngenta Holcim '6 UBS Regd Credit Suisse Group Zurich Financial Services

Total for Swherland . . . . . .

Finland Sampo 'A'


0.36

0.36

Spain Telefonica

Total for Spain

584,849 4,909,359

Total Investment Securilies 1,272,324,583 93.93

Total NAV 1,354,547,531 100.00 Netherlands Royal Dutch Petroleum 'NY' ING Groep Koninklijke Philips Electronics Heineken Akzo Nobel

391,010 21.611.123 1.59 713,960 18,331,977 1.35 553,674 15,457,598 1.14 308,000 13,517,203 1.00 291,110 12,675,331 0.94

Total tor Netherlands 6.02

Italy

Telecom ltalia EN1 986,135 15,679,215 1.16

1,814,074 9,620,361 0.71


3,053,750 16,613.713 1.23

1.23 ....

Sweden Nordea

Total for Sweden ........

Ireland Green Property 1,590,415 14,135,626 1.04

Total for Ireland 1.04 . . . . . . . .

Germany BASF NPV 0.87 254,216 11.837.137

. . ...... .. ._. . - Total for Germany 0.87

Japanese Growth Opportunities Fund

Investment aims To seek long term capital appreciation, measured in Yen, through investment primarily in the equity securities of growth orientated small, medium and large sized companies listed on any exchanges or over the counter markets in Japan.


0

.0.5 ---

-1.0

(0.57196 (0.85196 (1.19)% (0.19)%

- _.- . ~. . 1 5 -



121 Fund (net of expenses) Class B shares

TOPIX Index (expressed in Japanese Yen) __- . .-

Statement of investments Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Japanese Yen.



Electronic Equipment & Instruments Nidec 8.500 Keyence 2,000 Citizen Electronics 3,100 Hirose Electric 2,800 TDK 4,700 Hoya 2,800 Murata Manufacturing 2,900 Nippon Ceramic 11,000 Toyo 6,700 Kyocera 1,500 Kuroda Electric 4,500 Taiyo Yuden 6,000 Lasertec 4,000 Yokowo 10,300 Macnica 2,000

Total for Electronic Equipment & Instruments - . . . -. . - - -

Consumer Electronics Sony Nintendo Pioneer Alpine Electronics

Total for Consumer Electronics - - . - ~~

Diversified Commercial Services Bellsystem 24 Arrk Nichii Gakkan Secom Sanix Tokyo Individualized Educational Institute Tac

Total for Diversified Commercial Services - - .- ..

Restaurants Saint Marc Origin Toshu Joyfull Watami Food Service Saizeriya Skylark Kappa Create Matsuya Foods lchibanya Global-Dining

14,600 4,300 7,400

11,200

73,865,000 2.45 50,780,000 1.69 31 .OOO,OOO 1.03 29,260,000 0.97 26,602,000 0.88 24,416.000 0.81 22,330,000 0.74 14,355,000 0.48 13.500.500 0.45 13,125,000 0.44 12,082,500 0.40 11.760.000 0.39 10,200,000 0.34

7.652.900 0.26 7,440,000 0.25

11.58

93,002.000 3.09 75,895,000 2.52 15,873,000 0.53 15,344,000 0.51

1,180 9,100 4,300 5.500 3,500 2,300 3,000

10,400 12,700 15,000 12,700 5,300 5,900 1,900 5,000

11,000 5,700

6.65

49,501,000 164 49,140,000 1 6 3 32,680,000 1.09 32.340.000 107 10,185,000 0 34 9,890,000 0.33

0 25 7,440,000

6.35 -~

37.128.000 1.22 31,750,000 1.06 21,750,000 0.72 21,590,000 0.72 16,536,000 0.55 16,520.000 0.55 12,597,000 0.42 12,350,000 0.41 11.990.000 0.40

7,752,000 0.26

Total for Restaurants

Industrial Machinery Union Tool Sato Fuji Machine Manufacturing Shima Seiki Manufacturing Miyachi Technos lshii Hyoki Tokyo Kikai Seisakusho Tosei Engineering Nitto Kohki

7,000 10,600 8,000 5,300 6,500 4,000

26,000 4,000 2,300

37,590,000 31,800,000 14,880,000 14,628,000 10,010,000 8,800,000 8,606,000 6,052,000 4,494,200

6.31

1.25 1.06 0.49 0.49 0 33 0.29 0.29 0.21 0 15

Total for Industrial Machlnery 4.56

....

Japanese Growth Opportunities Fund

Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Japanese Yen.

Market % of net Holdlng value assets

Market Holding value

96 of net assets

-

0 72 0.43 0.39 0 35 0.16

Investment Invesiment

Specialty Stores Nitori C&S co. Otsuka Kagu Studio Alice

Personal Products Aderans Milborl Combi Fancl Morishita Jintan

Total for Personal Products

12,100 58,443,000 1.94 12,000 34,320,000 1.14 6.800 31,280,000 1.04 2,400 8,640,000 0.29

5,800 21,808,000 4,300 12,900,000

20,500 11,787,500 2,400 10.560.000 5,000 4,500,000

Total for Specialty Stores 4.41 2.05

1.93

IT Consulting & Services Obic Meitec NTr Data Net One Systems Future System Consulting

1,400 36,400,000 1.21 5.400 21,384,000 0.71

40 19,200,000 0.64 17 11,424,000 0.38 15 9,465,000 0.31

Wireless Telecommunication Services NTr Docomo 197 58,115,000

. . . . . _ Total for Wireless Telecommunication Services 1.93

0.93 0.78

1.71

1.04 0.35 0.32

Specialty Chemicals Taiyo Ink Manufacturing T&K Toka

Total for IT Consulting & Services 3.25

103 0 66 0.59 0.55 0.22

3.05

1.22 0.76 0.47 0.31 0.23

6,300 28,098,000 7,800 23,400,000

.- Electrical Components & Equipment Enplas 8,700 Ushio 14,000 Horiba 17.000 Chiyoda lntegre 11.900 Canopus 12

Total for Electrical Components & Equipment ~- ............... ~~

Total for Specialty Chemicals 31,146,000 19,936,000 17,680,000 16,445,800 6,588,000

Semiconductor Equipment Tokyo Electron Advantest Mimasu Semiconductor Industry

4,000 31,240,000 1.400 10,444,000 6,400 9,747,200

__ .- .

Total for Semlconductor Equipment 1.71

Pharmaceuticals Takeda Chemical Industries 7,000 Eisat 7,400 Hisamitsu Pharmaceutical 9,000 Rohto Pharmaceutical 10,000 Seikagaku 5,000

Total for Pharmaceuticals .... _. . . . . . . . .... ... ...

36,820,000 22,792,000 14,103 000 9,350,000 6,800,000

Auto Parts & Equipment Stanley Electric Nippon Cable System

30,000 38,400,000 1.28 8,000 9,280,000 0.31

Total for Auto Parts & Equipment 1.59

2.99

2.56 0.32

Consumer Finance Aeon Credit Service 6,300 45,108,000 1 5 0

Total for Consumer Finance 1.50 - ~ - . . Semiconductors

Rohm Disco

4,300 1,500

76,927,000 9,615,000

Application Software Trend Micro Saison Information Systems Nippon Systemware

Total for Semiconductors 2.88 7,000 23,450,000 0.78 7,000 10,640,000 0.35 6,000 9,552,000 0.32 Leisure Products

Takara Konami Yamaha Tomy Roland

37,000 33,855,000 1.13 6,400 16,096,000 0.53

12,000 13,992,000 0.46 7,200 10,411,200 0.35 8,500 10,285,000 0.34

Total for Application Software 1.45

Food Distributors Doutor Coffee 7,100 42.600.000 1.42

Total for Food Distributors 1.42 . . . . ~ . . . . . . . . .

Total for Leisure Products 2.81

Office Electronics Ricoh Canon

Meat Poultry & Fish Ariake Japan 31.000 64,325,000 2.14

4,000 18,120,000 0.60 8,700 40,020,000 1.33

Total for Meat Poultry & Flsh 1.33 Total for Office Electmnlcs 2.74

0.90 0.48 0.48 0.39 0.34

Drug Retail Ain Pharmaciez 11,000 15,950,000 0 53 Matsumotokiyoshi 4,300 23,908,000 0 79

Total for Drug Retail 1.32 . . . . . .- ......

Systems Software Fuji Soft ABC Zuken Intelligent Wave Acces Sorun

Total for Systems Software ....

5.600 27,048,000 13,800 14,572,800

48 14,496,000 8 11,680,000

10.300 10,197,000 Apparel, Accessories & Luxury Goods Tsutsumi Jewelry 8.100 21,384,000 0 71 Kyoto Kimono Yuzen 45 17,370,000 0.58

Total for Apparel, Accessories & Luxury Goods 1.29 . -

2.59

Japanese Growth Opportunities Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Japanese Yen.

Market % of net Market 46 of net Investment Holding value assets Investment H o I d i n g value assets

.. ._ .

Health Care Distributors 8 Services Japan Medical Dynamic Marketing 6,950 20,919,500 0 6 9 Eneserve

Heavy Electrical Equipment

BML Hoshiiryou-Sanki

3,300 11.1 54,000 0.37 -- 1.500 4,725,000 0.16 Total for Heavy Electrical Equipment

4,200 22.638.000 0.75

0.75 . . . . . . . . . . . . . . . .

Total for Health Care Distributors & Services 1.22 Environmental Services OSG Corp 3,000 11,700,000 0.39

Diversified Chemicals Daisekt 5,300 10,282,000 0.34 Fujimi 4,900 11,368.000 0.38 -~

0.35 Total for Environmental Services 0.73 C. Uyeniura & Co. 5,000 10,500,000 Aica Kogyo Company 11,000 8,261,000 0.27 Stella Chemifa 2,900 6,380,000 0.21 Automobile Manufacturers

Total for Diversified Chemicals 1.21 .. ..-

. .~ .... - __ -

Honda Motor 4,400 21,384,000 0.71

Total for Automobile Manufacturers 0.71

-.

Home Improvement Retail Komeri 10,000 34,900,000 1.16 Computer Storage & Peripherals

... .. .... - _- 10,000 19,900,000 0 66 -

Japan Cash Machine Total for Home Improvement Retail 1.16 .. .. . . . .-

Total for Computer Storage & Perlpherals 0.66

Metal & Glass Containers Fuji Seal 4.200 21,714,000 0 72 Commodity Chemicals FP 3,800 12,464,000 0 4 2 Kaneka 22,000 18,370,000 0.60

Total for Metal & Glass Containers 1.14 Total for Commodlty Chemicals 0.60 .... .... . . . . . _ _ .- .

Construction & Engineering Taikisha 15,000 15,000,000 0.50 JGC 14,000 11,900,000 0 40 NEC System Integration &Construction 4.900 5.698.700 0 19

Advertising Moshi Moshi Hotline 1,600 18,144,000 0 60

Total for Advertising 0.60 ... __ ._

Total for Construction & Engineering 1.09

Real Estate Management & Development Diamond City 7,000 11,900,000 0.40 Kennedy-Wilsuri Japan 22 10,054,000 0.33 Urban 8,900 9,968,000 0.33

Total for Real Estate Management & Development 1.06

Health Care Equipment Olympus Optical 10,000 16,740,000 0 56 COl l l l 2.300 13,570,000 0.45

Total for Health Care Equipment 1.01 . .

General Merchandise Stores Ryohin Keikaku Thanks Japan

Total for General Merchandise Stores __

Leisure Facilities Namco Konami Sports

Brewers Asahi Breweries 18,000 18,054,000 0 60

Total for Brewers 0.60 _~ -. - - ..

Specialty Stores Fujikyu 4,000 15,760,000 0 52

Total for SpeciatIy Stores 0.52 .- - -.

Textiles 0 47 Nagaileben

Total for Temles 0.47

4 700 14,100,000 . . - - - _-

Health Care Supplies 6,600 19,800,000 o.66 Nakanishi 5,000 13,950,000 0.46 7,000 9,100,000 0.30 ~ . -

0.96 . Total for Health Care Supplies 0.46

Air Freight & Logistics Yusen Air & Sea Service 9,100 13,468,000 0.45

6,700 15,309,500 0 5 1 ~

3,400 10,914,000 0 36 Total for Air Freight & Logistics 0.45 ....

Total for Leisure Facilities 0.87 Commercial Printing

Soft Drinks IT0 En

6,000 12,150,000 0 40 ._ -

Toppan forms

5,500 24,970,000 0.83 Total for Commercial Printing 0.40

Total for Soft Drlnks 0.83

Computer Hardware -. .

Toshibd 32.000 15.616.000 0 52 Total for Networking Equipment Fujitw 11,000 9 196,000 0.31

Total for Computer Hardware 0.83

Networking Equipment NextCom KK

. . ___

27 10.260.000 0.34

0.34

Japanese Growth Opportunities Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Japanese Yen.


Holding value assets __

Packaged Foods & Meat$ Rock Field 5,200 10,166,000 0 34

._

Total for Packaged Foods & Meats 0.34

Electronic Equipment & Instruments Megachips 4 100 9,922,000 0 33

Total for E l e c t " Equipment & Instruments 0.33 ___ . .

Aerospace & Defense Sumitomo Precision Products 16.000 8,400,000 0.28

Total for Aerospace & Defense 0.28 . ._ ... ._ . . . .. . . .. . . . . .

Trading Companies & Distributors Marubun 9,700 8.322.600 0.28

Total for Trading Companles & Distributors 0.28 _~

Electrical Components & Equipment AOI Electronics 6,500 7,020,000 0 23

Total for Electrical Components & Equipment 0.23 ._

Telecommunications Equipment Aiphone 5,800 7,018,000 0.23

Total for Telecommunications Equipment 0.23 . . .- .

Agricultural Products Fujicco 5.000 5,790,000 0.19

Total for Agricultural Products 0.19

Gas Utilities Shizuokagas 13,000 5,070,000 0.17

Total for Gas Utilities 0.17 ~. _. . __ ..

Apparel Retail Hasegawa 5,000 3,575,000 0.12

Total for Apparel Retail 0.12

Total Investment Securities 2,958,145.900 98.31 .. . . . __ . _. -. . -.

Total NAV 3,009,102,903 100.00

Japanese Value Equity Fund

Investment aims Statement of investments To seek long term capital appreciation, measured in Yen, through investment in the securities of companies listed on the Exchanges and over-the-counter markets in Japan.

Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Japanese Yen.

Change in net asset value per share For the six inontlis ended 30 June 2002


.. -. _. . .

Industrial Machinerv

0 -

-0 5

-1 0

-1.5

...

-2.0 ....................................... .............................................. _. ..




"i TOPIX Index (expressed in Japanese Yen)

Daikin Industries Mitsubishi Heavy Industries Minebea Daifuku Amada Tsubakimoto Chain Fuji Machine Manufacturing Fulitec

Total for Induslrial Machinery -.

489,000 2,092,000

955,000 1,120,000

960,000 1,500,000

280,500 355,000

1,073,355,000 759,396,000 672,320,000 561,120,000 557,760,000 537,000,000 521,730,000 209,450,000

2.49 1.76 1.56 1.30 1.30 1.25 1.21 0.49

11.36 ~.

Consumer Electronics Nintendo 81,000 1,429,650,000 3 32

Matsushita Electrical Industrial 727 000 1,188,645,000 2.76 Sony 200,300 1,279,733,000 2 97

Casio Computer 800.000 468,800,000 1.10 . . .

Total for Consumer Electronics 10.15

Electronic Equipment & Instruments Hitachi 1,367,000 1,059,425,000 2 45 Kyocera 115.000 1,006,250,000 2.34 TDK 133,600 756,176,000 1 7 6 Ryosan 260,000 361,400,000 0 84 Hitachi High-Technologies 119,000 201,824,000 0.47

Total for Electronic Equipment & Instruments 7.86 ._ -

Automobile Manufacturers Toyota Motor 396,300 1,260,234,000 2.93 Nissan Motor 1,460,000 1,211,800,000 2.82 Suzuki Motor 580,000 857,820,000 1.99

Total for Automoblle Manufacturers 7.74 -.

Commodity Chemicals Kaneka 1,070,000 893,450,000 2.08 Oenki Kagaku Kogyo K K 1,759,000 671,938,000 1.56 Mitsubishi Chemical 1,853,000 516,987,000 1.20 NIFCO 405,000 481,545,000 1.12

0.81 Lintec Shin-Etsu Polymer 750,000 320,250,000 0.74

Total for Commodity Chemicals 7.51

385,000 348,425,000

- . ._ ...................

Computer Hardware Toshiba 2,320,000 1,132,160,000 2 63

NEC 906,000 755,604,000 1 76

Total for Computer Hardware 6.60

Fujitsu 1,140,000 953,040,000 2 21

.

Pharmaceuticals Yamanouchi Pharmaceutical 335,000 1,041,850,000 2 42 Sankyo 520,000 847,600,000 1.97 Ono Pharmaceutical 193,000 826,040,000 1.92

Total for Pharmaceutlcals 6.31 .- ...

Office Electronlcs Canon 277,000 1,254,810,000 2.91

2.80 Ricoh

Total for Office Electronics 5.71

580.000 1,203,500,000 . . .

Japanese Value Equity Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Japanese Yen.


Holding value assets Investment Market % of net

H o I d i n g value assets

Construction & Engineering Kurita Water Industries Obayashi Sanki Engineering

Leisure Products Yamaha 504,000 587,664,000 1.37

Total for Leisure Products 1.37 - ..... . . .............. .........

466.000 687,350,000 1.59 1,380,000 469.200.000 1.09

140,000 80,500.000 0.19

Total for Consiruction & Engineering 2.87

2.66

2.66

1 8 5 0 56

2.41 ~

1.43 0.79

2.22 ~

Electrical Components & Equipment Furukawa Electric 827,000 379,593,000 0.88 Kyudenko 322,000 146,188.000 0.34 Photographic Products

FUJI Photo Film 296,000 1,145,520,000

Total for Photographic Products ~. Total for Electrical Components ii Equipment 1.22

Semiconductors Rahirl

Total for Semiconductors

28 300 506,287,000 . . . . 1.18

1.18

Trading Companies & Distributors Mitsubishi 920,000 797,640,000 Nagase &Company 420,000 240,240,000

Total for Trading Companies & Distributor$ ......... ...

Meat Poultry & Fish Nippon Meat Packers 326,000 489,652,000 1.14

Homebuilding Sekisui House 700.000 616,700,000 Sekisui CherriiLdl 830,000 340,300.000

Total for Homebuilding _

Total for Meat Poultry & Fish 1.14

146,600 395.820.000 0.92 Household Appliances Rinnai

Total for Household Appliances 0.92 Integrated Telecommunication Services Nippon Telegraph & TelephonP 1.867

Total for Integrated Telecommunication Services .......

920,431,000 2.14

2.14 Textiles Niqshinbo Industries 581,000 323,617,000 0.75

Total for Textiles 0.75 Real Estate Management & Development Mitsubishi Estate 870.000

Total for Real Estate Management & Development - ._ . -

852,600,000 1.98

1.98 Agricultural Products House Foods 271,000 317.070.000 0.74

0.74 Total for Agricultural Products Consumer Finance Hitachi Capital 515.400

Total for Consumer Finance . .

824,640,000 1.92 Building Products Sanwa Shutter 869,000

Total for Building Products __ ...

1.92

821,304,000 1 9 1

314,578,000 0.73

0.73 __ ...

Railroads East Japan Railway 1,464

Marine Mitsubishi Logistics 267.000 Total for Railroads 1.91 217,338,000 0.50

0.50 .- .

Total for Marine Computer Storage & Peripherals Mitsumi Electric 43G 000 810,550,000 1.88

Total for Computer Storage & Peripherals 1.88 . _. ... __ Movies & Entertainment

Toho 145,000 199,230,000 0.46

Total for Movies & Entertainment 0.46 Electric Utilities Tokyo Electric Powei 322,300 794,469,500 1.85

Home Furnishings Sangetsu 50,000 96,900,000 0.23

Total for Home Furnishings 0.23 . - - ~

Total for Electric Utilities 1.85

Food Retail Familymart

Total for Food Retail

245.700 712,530,000 1.66

1.66 . -. ..... -.. . . . . . . . . . . . . . Banks

Mitsubishi Tokyo Financial Group 50 40,400,000 0.09

Total for Banks 0.09 Commercial Printing Dai Nippon Printing Nissha Printing

Total for Commercial Printing

370,000 588,670,000 1.37 155.000 111,755,000 0.26

1.63

Total Investment Securities 42,701,360,500 99.21

Total NAV 43,041,246,423 100.00

Specialty Chemicals Daicel Chemical Industries 1,593.000 651,537,000 1.51

Total for Specialty Chemicals 1.51

Latin American Equity Fund

Investment aims Statement of investments To seek to maximise total return, measured in US dollars, through investment primarily in the common shares of companies incorporated in Latin American countries.


Change i r t net asset value per share For thc six months ended 30 June 2002


H o I d I n g value assets .

Mexico (12.561% 112.841%

0

-3 - -

-6

-9

12

-15

(13.331% (14.781%




' MSCl EMF Latin American Index (expressed in US dollars)

Telefonos de Mexico ADR 'Y America Movil 'L' ADR Grupo Financiero Bancomer '0 Cemex 'CPO Walmart de Mexico 'v' Grupo Televisa ADR Fomento Economic0 Mexicano 'UBD Carso Global Telecom 'Al ' Fomento Economic0 Mexicano ADR Kimberly-Clark de Mexico 'A Walmart de Mexico 'C' Grupo Financiero Banorte '0 CocaCola Femsa ADR Grupo Aeroportuario de Sureste ADR Tubos de Acero de Mexico ADR Panamerican Beverages 'A' America Telecom 'A l ' Grupo Mexico ' E Walmart de Mexico 'v' ADR Grupo Carso 'AI'

Total for Mexico . . . . . -

Brazil Companhia de Bebidas das Americas Banco ltau Pfd Petroleo Brasileiro ADR Pfd Companhia Vale do Rio Doce Pid 'A'

ADR

Petroleo Brasileiro ADR Petroleo Brasileiro Empresa Brasileira de Aeronautica ADA Rd Banco Bradesco Ffd Tele Norte Leste Participacoes Pfd Companhia Vale do Rio Doce ADR Pfd 'A' Petroleo Brasileiro Pfd Companhia Energetica de Minas Gerais Pfd Companhia Siderurgica Nacional Gerdau Pfd Tele Centro Oeste Celular Participacoes ADR ltausa - lnvestimentos ltau Pfd Centrais Eletricas Brasileiras ADR Pfd ' E Companhia de Bebidas das Americas Pfd Celular CRT Participacoes Ptd 'A' Votorantim Celulose e Papel Pfd Companhia Paranense de Energia ADR Pid 'B' Companhia Vale do Rio Doce ADR Companhia Siderurgica Nacional ADR Banco Bradesco ADR Pfd Gerdau ADR Pfd Tele Norte Leste Participaqoes ADR Pfd Votorantim Celulose e Papel ADR Pfd Companhia Energetica de Minas Gerais ADR non-vtg Pfd Companhia Paranaense De Energia Brasil Telecom Brasil Telecom Participaqoes Pfd Brasil Telecom Participacoes ADR Pfd Centrais Eletricas Brasileiras ADR Centrais Eletricas Brasileiras Ffd ' E Brasil Telecom Banco Nacional Pfd (11 Lojas Arapua Pfd (11 Lolas Arapua GDR 144A (11

475,059 586,709

9,092,164 1,302,708 2,299.652

143.967 1,320,329 4.560.392

106,190 1,166,399 1,281,360 1,235,800

68.300 124.300 113,922 102,900

2.287.992 . . 254,810

8,513 68,225

15,239,893 7,861,901 7,432,810 6,903.239 6,24571 1 5,381,486 5,172,450 4,952,462 4,164,772 3,108,052 2,963,427 2,851,846 1,639,200 1,603,470 1,600,082 1,466,325 1,357,381

366,393 225,595 205.395

9.55 4.93 4.66 4.33 3.91 3.37 3.24 3.10 2.61 1.95 1.86 1.79 1.03 1 .oo 1 .00 0.92 0.85 0.23 0.14 0.13

466,300 95.870.230

7.246.302 5.381.244

305,067 5.308.166 183,676 4,703,858 204,230 3,851,778 196,031 3,644,849 169,005 3.616.707

743,044,877 2,893,457 283,224,444 2,811,876

98.654 2,560,071 128,480 2,213.074

153,705,059 1,725.508 105,484,374 1,664,881 150,141,794 1.543.292

314,000 1.391.020 1,898,229 1,265,264

246,390 1,160,497 7.191.000 1.103.688 5.082.132 729,185

19,301,000 700,808

150,937 611,295 18,790 519,919 28,100 445.104 21,658 427,746 34,000 355,300 35,412 352.349 17,790 336,231

26,551 298,439 70.382.482 285,184 42,249,738 167,487 24,973,998 138,866

2.300 65,113 9,440 49,088

1,629,564 15,321 3,077,055 10,147 2,698,000 0

58,202,100 0 10,180 0

50.60

4.54 3.37 3.33 2.95 2.41 2.28 2.27 1.81 1.76 1.60 1.39 1.08 1.04 0.97

0.87 0.79 0.73 0.69 0.46 0.44

0 38 0.33 0.28 0.27 0.22 0.22 0.21

0.19 0.18 0.10 0.09 0 04 0 03 0.02 0.01 0.00 0.00 0.00

Total for Brazil 37.35

Latin American Equity Fund



.

Chile Compania Telecomunicaciones de Chile ADA 'A' Banco de Chile ADR Compania Cervecerias Unidas AOR Banco Santiago ADR Distribucion Y Servicio D & S ADR Encrsis ADR Banco Santander ADR

Total for Chile

Venezuela Compania Anonima Nacional Telefonos de Venezuela ADR 'D'

257,456 86,275 84,770 40,320 53,038 98,564 34,639

3,153,836 1,406,282 1,301,220

699,552 630,622 570,686 450,307

204,461 2,909,480

1.97 0.88 0.82 0.44 0.40 0.36 0.28

5.15

1.82 .. - ... ...

Total for Venezuela 1.82

Argentina Quilmes Industrial ADR 106.543 1.041.991 0.65

Total tor Argentina 0.65

95.57 Total Investment Securities 152,498,980

Total NAV 159,565,714 100.00

(1) This security is valued at its fair market value.

.

... . . . - -

. .... . . .~

US Equity Fund Investment aims To seek long term capital appreciation, measured in US Dollars, through investment primarily in equity securities of medium to large sized US companies.

Charige in net asset value per share For the six months ended 30 June 2002

-- ...... .......

(15.981% (16.331% (16.681% (13.151% 0

-3

-6

-9

-12

-15

-. .

....

....

-

18 .-




- S&P 500 Index (expressed in US dollars)


Investment

Pharmaceuticals Pfizer Merck & Co Johnson R Johnson Bristol-Myers Squibb American Home Products Pharmacia Abbott Laboratories Lilly Eli & Co. Schering Plough

Market % of net H o I d i n g value assets

.... .- . -

22,300 6,900 5,100 9.400 4,700 6,300 4,300 1,200 1,700

780,500 349,416 266,526 241,580 240,640 2 3 5,9 3 5 161,895 67,680 41,820

3.22 1.44 1.10 1.00 0.99 0.97 0.67 0.28 0.18

~~ ~~

Total for Pharmaceuticals

Banks Bank of America U.S. BanCOrp Comerica Wells Fargo & Co. Mellon Financial PNC Financial Services Group

9,800 21,100

5.900 4,300 4,300

500

Total for Banks

9.85

689,528 2.84 492,685 2.03 362,260 1.50

135,149 0.56 26,140 0.11

7.93

215,258 0.89

Diversified Financial Services Cltlgroup 11,500 445,625 1.84

American Express 9,600 348,672 1.44 Freddie Mac 5,600 342,720 1.41 Lehman Brothers Holdings 3,000 187,560 0.77 Goldman Sachs Group 2.300 168,705 0.71

J.P. Morgan Chase & Co 12,000 407,040 1.68

. . . . . . . . . -. ... .- .........

Total for Diversified Financial Services 7.85

Systems Software Microsoft 20,600 1,126,820 4.65 Oracle 12,800 121,216 0 50

Total for Systems Sofhvare 5.15 . . . . .

Industrial Conglomerates General Electric 26,100 758,205 3.13 Tyco International 17,000 229.670 0.95

Total tor lndu8wlal Conglomerates 4.08 .- ..... . . . . . . . . . . .

Integrated Telecommunication Services Verizon Communications AT&T

14,400 578,160 2.38 18,100 193,670 0.80

SBC Communications 6,100 186,050 0.77

3.95 Total for Integrated Telecommunlcatlon Servlces

Integrated Oil & Gas Exxon Mobil 10,700 437,844 1 8 1 TotalFinaElf ADR 3,700 299,330 1 24 Amerada Hess 1,500 123,750 0.51 ChevronTexaco 500 44,250 0 18

Total for Integrated Oil & Gas 3.74 . . --

Aerospace & Defense Honeywell International 9,500 334,685 1.38

United Technologies 3,100 210,490 0 87 Northrop Grumman 800 100,000 0.41

Total for Aerospace & Defense 3.64

Boeing 5,300 238.500 0 98

...... .

US Equity Fund


Investment

Semiconductors Analog Devices Maxim Integrated Products Intel Xilinx Texas lnstrumcnts

Total for Semiconductors ~ . . .

Market % of net Holding value assets

.-

10,000 297,000 1.23 5,200 199,316 0.82 8,100 147,987 0.61 6,100 136,823 0 56 3,700 75,840 0 32

3.54 .

Soft Drinks Coca Cola 13,200 739,200 3 05

Total for Soft Drinks 3.05 _._

Telecommunications Equipment Motorola 43,800 631,596 2.60

Nortel Networks 21,800 31,610 0.13

Total for Telecommunications Equipment 2.95

Qualcomni 1.900 52,231 0,22

..... ~ . . ..

Movies & Entertainment Viacom non-vtg ' B 8,800 390,456 1 6 1 Walt Disney 8,800 166,320 0.69 AOL Time Warner 10 700 157,397 0 65

Total for Movies & Entertainment 2.95

General Merchandise Stores Wal-Mart Stores 12,000 660,120 2.73

Total for General Merchandise Stores 2.73 _ .

Oil & Gas Drilling Noble Cooper Cameron Ensco International Nabors lridustries

6.000 231,600 0.95 3,700 175,154 0 74 5.000 136,300 0 56 3.200 112,960 0.47

Total for Oil 8 Gas Drllllng 2.72

Computer Hardware Hewlett-Packard 22,310 340,897 1.41 Dell Computer 4,400 115,016 0.47 Sun Microsystenis 18,900 94,689 0.35 International Business Machines 1,000 72.000 0.30

Total for Computer Hardware 2.57 __ . .......

Restaurants McDonald's 16,300 463.735 1.91

Total for Restaurants 1.91 .... _ __ ....

Elecrric Urilities Duke Energy 8.800 273,680 1.13 Exelon 1,900 99,370 0 41 Calpine 8,200 57.646 0.24

Total for Electric Utilities 1.78 - .. ...

Packaged Foods & Meats Unilever 'NY' 5,800 375,840 1.55

Total for Packaged Foods & Meats 1.55 -. . _.

Oil & Gas Exploration & Production Kerr-McGee 3.200 171,360 0.71



Oil & Gas Exploration & Production (continued) Devon Energy 2,300 113,344 0.47 GlobalSantaFe 3,200 87,520 0.36

Total for Oil & Gas Exploration & Pmductlon 1.54 .... ___ . .. ~- .-

Consumer Finance MBNA 10,700 353.849 1 46

Total for Consumer Finance 1.46 .

Industrial Gases Air Products R Chemicals 6,800 343,196 1.42

Total for Industrial Gases 1.42 ... . _- . -. -

Personal Products Avon Products 3,800 198,512 0.81 Gillette 3,900 132,093 0.55

Total for Personal Products 1.36 ~ ...

Semiconductor Equipment Taiwan Serniconductor ADH 15,510 201,630 0 83 Rradyne 5,000 117.500 0 49 _ _ Total for Semiconductor Equipment 1.32

Health Care Equipment Guidant 4,400 133,012 0.55 Boston Scientific 3,200 93,824 0.39 Baxter International 1,900 84,455 0.35

1.29 . -

Total for Health Care Equipment

Networking Equipment Cisco Systems 13.900 193,905 0.80 Brocade Cumrnuriicatioris Systems 6,400 11 1.872 0.46

Total for Neworking Equipment 1.26 ... .... ~ .......

Automobile Manufacturers Ford Motor 12,800 204,800 0.85 General Motors 1,200 64,140 0.26

Total for Automob118 Manufacturers 1.11 ..

Home Improvement Retail Home Depot 7,000 257,110 1.06

Total for Home Improvement Retail 1.06 -. . ....

Life 8 Health Insurance Principal Financial Group 4,400 136,400 0 56 Cigna 900 87,678 0.36

Total for Lrfe & Health Insurance 0.92

Tobacco Philip Morris 4,800 209,664 0 87 ._ _. _ Total for Tobacco 0.87

Multi-line Insurance American International Group 2,000 136,460 0.56 Hartford Financial Services 1,200 71,364 0.29

Total for Multi-line Insurance 0.85 ~ .

US Equity Fund



Holding value assets Investment Market % of net


Paper Products International Paper 4,700 204.826 0.85

Total for Paper Products 0.85

Department Stores Kohls 2,900 203.232 0 84

Total for Department Stores 0.84 .

Health Care Facilities HCA - Heaithcare Healthsouth

2,400 114,000 0.47 6,600 84,414 0.35

Total for Health Care Facilities 0.82

Brewers Anheuser Biisrh 3,400 170,000 0.70

Total for Brewers 0.70 . . . -

Apparel Retail Limited Brands 7 600 161,880 0.67

Total for Apparel Retail 0.67 _. ...

Food Retail Krogpr 6.300 125,370 0 52 Safeway 1,100 32,109 0 13

Total for Food Retall 0.65 _.

Biotechnology Amgen 3,700 154,956 0.64

Total for Biotechnology 0.64

Wireless Telecommunication Services Sprint PCS Group 20,400 91 188 0 38

Total for Wireless Telecommunication Services 0.38 ....

IT Consulting & Services Electronic Data Systems 2.400 89,160 0.37

Total for IT Consultlng & Servlces 0.37

Property & Casually Insurance Chubb 1,200 84,960 0 35

Total for Property & Casualty Insurance 0.35 -. . . . - .

Drug Retail cvs 2,600 79.560 0.33

Total for Drug Retall 0.33

Electronic Equlpment & Instruments Agilent Technologies 3,200 75,680 0 31

Total tor Electronlc Equlpment & Instruments 0.31

Application Software Siebel Systems 4,300 61,146 0.25

Total for Appllcation Software 0.25

Broadcasting & Cable lV Comcast 'Special A nonvoting 2,500 59,600 0.25

Total for Broadcasting & Cable TV 0.25

Total Investment Securities 23.490.767 96.98 __ ..

Totai NAV 24.22 1.099 100.00 Construction & Farm Machinery & Heavy Trucks Caterpillar 3,000 146.850 0.61

Total for Construction & Farm Machinery & Heavy Trucks 0.61 ......... -. ....... .....

Auto Parts & Equipment Delphi Automotive Systems 10,700 141,240 0 58

Total for Auto Parts & Equipment 0.58 -_ _. . . . . . . .

Casinos & Gaming Park Place Entertainment 7.600 77,900 0.32 International Game Technology 1,100 62,370 0.26

Total for Casinos & Gaming 0.58 - .. ....

Household Products Procter & Gamble 1,400 125,020 0.52

Total for Household Products 0.52 - ........ .- ........ ......

Building Products Masco 4.300 116,573 0 48

Total for Building Product8 0.48 .- .... . . .

Diversified Chemicals Engelhard 3,400 96,288 0 40

Total for Diversified Chemicals 0.40

US Equity Growth Fund

Investment aims To seek long term capital appreciation, measured in US dollars, through investment principally in growth oriented common stocks of large capitalisation US corporations and, to a limited extent, foreign corporations.


0

-2

-4

-6

-8

-10

-12

.14

-16

-18

-20

(17.891% (18.09) % (18.501% (13.151%




S&P 500 Index (expressed in US dollars) ? ~ ---- .................. .......


Investment Market

Holdlng value % of net

assets

Pharmaceuticals Pfizer Wyeth Johnson &Johnson Abbott Laboratories Pharmacia Ltlly Eli & Co. Merck & Co

Total for Pharmaceuticals

1,091,662 38,208,170 368,550 18.869.760 356,438 18,627,450 336,000 12,650,400

96.113 5,420,773 56,950 2,883,948

252.413 9,452,867

4.13 2.04 2.01 1.37 1.02 0.59 0.31

11.47

Diversified Financial Services Freddie Mac 651.488 39,871,066 4.31 Citigroup 787,704 30,523,530 3.30 Goldman Sachs Group 129,654 9.510.121 1.03 American Express 160,950 5,845,704 0.63

Total for Diversified Financial Services 9.27 ............

Industrial Conglomerates General Electric 2,230,637 64,800,005 7.00

Total for Industrial Conglomerates 7.00 ...

Systems Software Microsoft 935,195 51.155.167 5 53 Oracle 548,883 5,197,922 0 56 Veritas Software 129,458 2,561.974 o 28

-. -

Total for Systems Software 6.37

Semiconductors Intel Texas Instruments Linear Technology Maxim Integrated Products Xilinx Analog Devices Altera lntersil 'A'

Total for Semiconductors . . . . .- .

1,308,218 482,050 174,800 64.100 93,250 54,900 90.350 48,200

23,901,143 11,424,585 5,493,964 2,456,953 2,091,598 1,630,530 1,228,760 1,030,516

2.58 1.23 0.59 0.27 0.23 0.18 0.13 0.11

5.32 ~-

General Merchandise Stores

BJ's Wholesale Club 171.900 6,618,150 0.72 Costco Wholesale 134,013 5,175,582 0.56

Total for General Merchandise Stores 4.29

Wal-Mart Stores 506,900 27,884,569 3 01

__ -

Health Care Distributors & Services Quest Diagnostics 151,500 13,036,575 1 4 1 Laboratory 250,550 11,437,608 1.24 AmerisourceBergen 99,150 7,535.400 0 81 Cardinal Health 49,525 3,041,330 0.33

Total for Health Care Distributors & Services 3.79 -. ..

Home Improvement Retail Home Depot 751.700 27,609,941 2.98 Lowe's Companies 127.850 5.804.390 0 63

Total for Home Improvement Retail 3.61 .....

Soft Drinks

Pepsico 159,130 7.670.066 0 83

Total for Soft Drlnks 2.95

Coca Cola 350,850 19,647,600 2.12

.........

US Equity Growth Fund State men t of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


Banks Fifth Third Bancorp 162,100 10,803,965 1.17 Bank of New York 235.950 7,963,313 0.86 Charter One Financial 105,900 3,640,842 0.40 Synovus Financial 89.300 2,457,536 0.27

Total for Banks 2.70

_. . . . . . . .

. . . - -.

Movies & Entertainment Viacom non-vtg ' 0 344,040 15,265,055 1.65 AOL Time Warner 252,188 3,709,685 0.40 Regal Entertainment Group 'A' 157,350 3,669,402 0.40

Total for Movies B Entertainment 2.45 . . ._ ..... -. ....

Household Products Procter & Gamble 211,500 18,886,951 2.04 Colgate-Palmolive 49.525 2,478,726 0.27

Total for Household Products 2.31 .- ___ ..

Data Processing Services First Data Affiliated Computer Services 'A' Concord EFS

376,700 14,013,240 1.51 75,750 3,596,610 0.39

107,830 3,249,996 0.35

Total for Data Processing Services 2.25

Oil & Gas Equipment & Services

BJ Services 182,050 6,167,854 0.67

2.22

Baker Hughes 430,501 14,331,378 1 5 5

Total for Oil & Gas Equlpment & Services . -.

Multi-line Insurance American International Group 300,075 20,474,117 2.21

Total for Multl-line Insurance 2.21 . . . . . .

Computer Hardware Dell Computer 518,237 13,546,715 1.46 International Business Machines 55,400 3,988,800 0.43 Sun Microsystems 384,612 1,926,906 0.21

Total for Computer Hardware 2.10 ~_ .- . . . .

Aerospace & Defense General Dynamics 111,088 11,814,209 1.28 Raytheon Company 115,950 4,724,963 0 51 Alliant Techsystems 38.904 2,482.075 0.27

Total for Aerospace & Defense 2.06 ......

Networking Equipment Cisco Systems 1229.372 17,149,739 1.85 Brocade Communications Systems 90,300 1,578,444 0.17

Total for Networklng Equipment 2.02 . -.

Consumer Finance Capital One Financial 300,938 18,372,265 1.99

Total for Consumer Finance 1.99 ...... .....

Tobacco Philip Morris 285,513 12,471,208 1.35 I.oews. Carolina Group 122,350 3.309.568 0 36

Total for Tobacco 1.71 .-

Market 96 of net investment H 0 Id i n g value assets

Health Care Equipment Medtronic 237,000 10,155 450 1 1 0 Baxter lnterriational 104,900 4,662,805 0 50

Total for Health Care Equipment 1.60 - .. _ _

Integrated Telecommunication Services Verizon Communications 193,900 7 785,085 0 84 SBC Communications 227,238 6,930,759 0.75

Total for Integrated Telecommunication Services 1.59 ~. ~ -. _. _. - . .

Health Care Facilities HCA - Healthcare 289.175 13.735.812 1.48

Total for Health Care Facilities 1.48

Apparel Retail Limited Brands 378.750 8,067,375 0.87 TJX Companies 168,950 3,313.109 0.36

Total for Apparel Retail 1.23 . . . . . . . . ......

Department Stores

Dollar Tree Stores 128,288 5,055,830 0 55 Dollar General 308,850 5,877,416 0 63

.- ~ - Total for Department Stores 1.18

Oil & Gas Exploration & Production Anadarko Petroleum 189,750 9.354575 1.01

Total for Oil & Gas Exploration & Production 1.01

Biotechnology Amgen 127,800 5,352,264 0.58 Gilead Sciences 81.600 2,683.008 0 29 Celgene 75,750 1,158,975 0 13

Total for Biotechnology 1.00 .. -

Brewers Anheuser Busch

Total for Brewers _ _ 183.950 9,197,500 0.99

0.99

Broadcasting 8 Cable TV Liberty Media 'A' 903,200 9,032,000 0 99


Semiconductor Equipment Applied Materials 405,800 7,718,316 0.83

Total for Semiconductor Equlpment 0.83 - . -

Telecommunications Equipment Motorola 273,850 3,948,917 0 43 Qualcomm 122,350 3,363,401 0 36

Total for Telecommunications Equipment 0.79 ._

Drug Retail Walgreen 187,800 7,254,714 0 78

Total for Drug Retail 0.78 . _

US Equity Growth Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


Holding value assets . . . .... ... ...

Restaurants Tricon Global Restaurants 122.350 3,578,737 0.39 Wendy's International 69,900 2,784,117 0.30

Total for Restaurants 0.69 ....... ....

Application Software Intuit 110.284 5.483.320 0 59

Total for Applicatlon Software 0.59

Advertising Univision Communications 'A'

Total for Advertising .....

141,050 4,428,970 0.48

0.48 .- -

Diversified Commercial Services Weight Watchers International 92,000 3,996,480 0 43

. . . . -. - .. Total for Diversified Commercial Servlces 0.43

Casinos & Gaming International Game Technology 67.025 3.800.317 0.41

Total for Casinos &Gaming 0.41 ..... ....

Specialty Stores Tiffany & Co 107,800 3,794.560 0.41

Total for Specialty Stores 0.41 . .- .- -.

Personal Products Albertdulver 'B' 68,350 3,267,130 0.35

Total for Personal Products 0.35 . . __

IT Consulting & Services Sungard Data Systems 102,000 2,700,960 0 29

Total for IT Consulting & Services 0.29 ....

Computer Storage & Peripherals tMT 340,900 2,573,795 0 28

.- - .

Total for Computer Storage & Peripherals 0.28

Total Investment Securities aa3,427,476 95.49

Total NAV 925.193.623 1oo.M)

.- -. ~-

.~ ~-

US Growth and Income Fund Investment aims To provide reasonable current income and long term growth of income and capital. The Fund will invest primarily in the common or preferred stocks of companies which are located in the US and have a record of paying dividends and the potential for increased dividends.





0

-4 -

-6

-8

-10

-12 - -

(3.451% (3.671% (4.151%

.I4 .... ... .. .... . . ...




:$ S&P 500 Index (expressed in US dollars) . _.

Integrated 011 & Gas Royal Dutch Petroleum 'NY BP ADR Marathon Oil Exxon Mobil

132,000 7,295,640 1.53 140.000 7,068.600 1.49 260,000 7,051,200 1.48 170,000 6,956,400 1.46

Total for Integrated Oil B Gas 5.96

Electric Utilities Dominion Resources FPL Group Exelon FirstEnergy

Total for Elecbic Uliliiies ~.

105,000 6,951,000 1.46 115,000 6,898,850 1.45 130,000 6,799.000 1.43 200.000 6,616,000 1.40

5.74

Pharmaceuticals Schering Plough 285,000 7,011,000 1.47 Bristol-Myers Squibb 260,000 6,682,000 1.40 Wyeth 130,000 6,656,000 1.40 Pharmacia 175,000 6,553,750 1.38

Total for Pharmaceuticals 5.65 - __ .

Life 8 Health Insurance Aegon Regd Jefferson-Pilot Lincoln National

370,000 7,529,500 1.58 145,000 6,815,000 1.43 160,000 6,720,000 1.42

Total far Life & Health Insurance 4.43

Diversified Financial Services J.P. Morgan Chase & Co 215,000 7292.800 1.53 Citigroup 175,000 6,781,250 1.43 Fame Mae 90,000 6,637,500 1.39

Total for Diversified Financial Services 4.35 . .

Auto Parts & Equipment Johnson Controls 85,000 6,936,850 1.46 TRW 120,000 6,816,000 1.43 Delphi Automotive Systems 505,000 6,666,000 1 40

Total for Auto Parts 8 Equipment 4.29 _. ._ -.

Aerospace & Defense Goodrich United Technologies Honeywell International

1.44 1.42 1.41

250,000 6.830.000 100,000 6,790,000 190,000 6.693.700

Total for Aerospace & Defense 4.27

Construction & Farm Machinery & Heavy Trucks Deere & Co 160,000 7,664,000 1 6 1

1 49 Caterpillar 145,000 7,097,750

Total for Construction & Farm Machinery & Heavy Trucks 3.10 - .

Automobile Manufacturers DaimlerChrysler General Motors

160,000 7,716,800 1.62 130,000 6,948,500 1.46

Total for Automobile Manufacturers 3.08

US Growth and Income Fund Statement of investments (con tin ued ) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


Holding value assets Market % of net

Investment Holding value assets

Diversified Chemicals Dow Chemical 215,000 7,391,700 1.55 Du Porit (ELI de Nemours 160,000 7,104,000 1.50

Total for Diversified Chemicals 3.05

.- . - . . -. . . .............

Integrated Telecommunication Services Verizon Communications 180.000 7,227,000 1.52

Total for Integrated Telecommunication Services 1.52 _- _ ._ . _._ .- _. _. - - ..........

Specialty Chemicals PPG Industries 115,000 7,118,500 1.50 Railroads

Burlington Northern Santa Fe csx

240,000 7,200,000 1.51 205,000 7,185,250 1.51 Total for Specialty Chemlcals 1.50

Total for Railroads 3.02 General Merchandise Stores Target 185,000 7,048,500 1 4 8

. . . . . . .

Total for General Merchandise Stores 1.48 Paper Products MeadWesivaco International Paper

220,000 7,383,200 1.55 160,000 6,972,800 1.47

Forest Products Weyerhaeuser 110,000 7,023,500 1.48

Total for Paper Products 3.02

Total for Forest Products 1.48 Aluminum Aluminium Company of America Alcan

220,000 7,293,000 1.53 185,000 6,941,200 1.46 Photographic Products

Eastnian Kodak 240,000 7,000 800 1 4 7

Total for Photographic Products 1.47 ......... - - ...... Total for Aluminum 2.99

Food Distributors Supervalu 290,000 7,113,700 1.49 sysco 255.000 6,941,100 1.46

Total for Food Distributors 2.95 .. ...... __ .

Oil & Gas Reflnlng & Marketing &Transportatton Sunoco 195,000 6,947,850 1.46

Total for Oil & Gas Refining & Marketing &Transportation 1.46 ....

Computer Hardware Hewlett-Pachard International Business Machines

455,000 6.952.400 1.46 95,000 6,840,000 1.44

Personal Products Avon Products 132,000 6,895,680 1.45

Total for Personal Products 1.45 Total for Computer Hardware 2.90

Department Stores Sears Roebuck & Co 125,000 6,787 500 1 4 3

Total for Department Stores 1.43 .........

Household Products KimberlyClark 110,000 6,820,000 1.43 Procter & Gamble 75,000 6,697,500 1 4 1

Total for Household Products 2.84 .~ ......

Consumer Finance Household International 135,000 6 709,500 1 4 1

1.41 soft Drinks Coca Cola 125,000 7,000 000 1 4 7 Pepsico 135,000 6,507,000 1.37

Total for Soft Drinks 2.84 .-. . - ..

Total for Consumer Finance

Oil & Gas Exploration & Production Kerr-McGee 125,000 6,693,750 1 4 1

Total for Oil &Gas Exploration & Production 1.41 - .

Banks KeyCorp 245,000 6,688,500 1 4 1 Bank of America 95,000 6,684 200 1 40

Total for Banks 2.81 - ........... ~ ....... Semiconductors

Intel 365.000 6,668,550 I .40

Total for Semiconductors 1.40 lndustrlal Conglomerates Minnesota Mining & Manufacturing General Electric

55,000 6,765,000 1.42 225.000 6,536,250 1.37 Apparel, Accessories & Luxury Goods

V. F. 170,000 6,665,700 1.40

Total for Apparel, Accessories & Luxury Goods 1.40 .. .__ ....... ..... - . . . Total for lndustrlal Conglomerates 2.79

Properly & Casualty Insurance Travelers Property Casualty 'A' 410,000 7,257,000 1 5 3 .......... .

Total for Property & Casualty Insurance 1.53

Office Services & Supplies Pitney Bowes 165,000 6,553,800 1.38

Total for Office Services & Supplles 1.38

. . . .

US Growth and Income Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.



Household Appliances Whirlpool 100,000 6,536,000 1.37

Total for Household Appliances 1.37 ._ . _-

IT Consulting & Services Electronic Data Systems 170,000 6.315.500 1.33

Total for IT Consulting &Services 1.33 .- -. - . . . -. .

Gas Utilities El Paso 205,000 4,225,050 0.89

Total for Gas Vtilities 0.89


Total NAV 475,a47,3a9 100.00

.. ... . .

.... .

. . -

US Property Fund*

Investment aims To seek to provide above average current income and long term capital appreciation, measured in US dollars, by investing in equity securities of companies in the US real estate industry. The Fund will invest in the publicly traded securities of closed- ended United States equity Real Estate Investment Trusts ('REITS') and similar Real Estate Operating Companies ('REOCS').

Change in net asset value per sharp For the qix months ended 30 June 2002

9.76% 9.39% 8.8936 13.68% 1 A .

. ...

- ..




NAREIT (Equity) Index (expressed in US dollars)

See Note 2 on page 130.


Investment Market

value H o I d i n g

Real Estate Investment Trusts Equity Office Properties Trust Avalonbay Communities Simon Property Group Arden Realty Rouse Public Storage Equity Residential Properties Trust AMB Property ArchstoneSmith Trust Host Marriott Taubman Centers Federal Realty Investment Trust Essex Property Trust Boston Properties ProLogis Trust Shurgard Storage Centers 'A' General Growth Properties Mack-Cali Realty Apartment Investment & Management 'A' Manufactured Home Communities Vornado Realty Trust Wellsford Real Properties Kilroy Realty SL Green Realty Chateau Communities Post Properties Reckson Associates Realty Great Lakes RElT innkeepers USA Trust Amli Residential Properties Trust CarrAmerica Realty Macerich Prime Group Realty Trust Summit Properties Regency Centers CBL &Associates Properties Koger Equity Kimco Realty Capital Automotive Chelsea Property Group RamcwGershenson Properties Trust Sun Communities Crescent Real Estate Equities Company

424,086

300,300 289,845 247.800 212,506 255,650 228,100 256.924 603,600 425,890 229.000 105,500 139,950 198,640 123,200 76,900

106,200 75,800 95,000 69,700

149,157 89,000 65,000 69,912 56,600 57.300 73.993

116,600 37,400 29.450 19,000 69,000 13,900 9,200 3,900 8,100 2,700 3,300 2,000 1,400

500 200

258,900 12,764,989 12,090.630 1 1,063,052 8,246,090 8.177.400 7,883,973 7,349,938 7,071,100 6,859,871 6,820,680

6,345.590 5,770,850 5,591,002 5,164,640 4,275,040 3,321,900 3,732,930 3,729,360 3,334.500 3,220,140 3,087,550 2,380,750 2 3 7 . 2 5 0 2,139,307 1,707,056 1,426,770 1,404,387 1.1 17,028

972,400 908,532 589,000 449,190 324,565 272.780 157,950 156,330 90,423

66,900 28,210 20,875

3,740

6,494,822

78.738

X of net assets

6.52 6 18 5.65 4.21 4 18 4.03 3.76 3.61 3.51 3.49 3.32 3.24 2.95 2.86 2.64 2.18 2.00 1.91 1.91 1.70 1 6 5 1.58 1.22 1.18 1.09 0.87 0.73 0.72 0.57 0.50 0.46 0.30 0.23 0.17 0.14 0.08 0.08 0.05 0.04 0.03 0.01 0.01 0.00

. ....

Total for Real Estate Investment Trusts 81.56

Hotels, Resorts & Cruise Lines Starwood Hotels & Resorts Worldwide 366,762 12,062,802 6.16 Hilton Hotels 194,500 2,703,550 1 38 Wyndham International 'A' 468.231 543,148 0.28 John Q. Hammons Hotels 63,900 392,985 0.20 Candlewood Hotel 41,000 55,350 0 03 Interstate Hotels 9,286 33,801 0.02

Total for Hotels, Resorts & Cruise Lines 8.07 . ..

Real Estate Management & Development Brookfield Properties (CAD) 322.808 6,488,441 3.32 Trizec Properties 'CTF' 135,400 2,288,260 1 1 7 Brookfield Properties (USD) 116,852 2,404,805 1.23 Forest City Enterprises 'A 29,800 1,035,550 0.53

Total for Real Estate Management & Development 6.25 . .. ~ .. .

US Property Fund




Internet Soffware & Services lnternap Network Services 11,861 2,728 0 00

0 00 FrontLine Capital Group (11 282,200 0

Total for Internet Software & Services 0.00

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

- _ _ _ _

__ ~

95.88


Hotels. Resorts & Cruise Lines Wyndhani Series B CV Pfd (1) 20.177 1,496,491 0.76 Wyndham International Series II Pfd (1) 11,138 865,170 0.44

Total for Hotels, Resorts & Cruise Lines 1.20 . . . . . ..

Real Estate Investment Trusts Beacon Capital Partners (1) Pacific Gulf Properties (11

215,700 1,208,384 0.62 95.900 74,313 0.04

Total for Real Estate Investment Trusts 0.66

Real Estate Management & Development Atlantic Gulf Communities CV Pfd (1) 38,385 Atlantic Gulf Communities Wts exp. 24/06/2004 (11 54,018 Atlantic Gulf Communities CP Pfd (1) 54,011 Atlantic Gulf Communities Wts cxp. 23/06/2004 (11 51,180

Total for Real Estate Management & Development - . . ... . .

0 0.00

0 0 00 0 0.00

0 00 0

0.00 . ..

Total other transferable securilies not admitted to official exchange listing or dealt in on another regulated market 1.86


Total NAV

(1) This security is valued at its fair market value

195,689,319 100.00

US Small Cap Growth Fund

Investment aims To seek long term capital appreciation, measured in US dollars, by investing primarily in the common shares of small and medium sized US companies and to a limited extent foreign corporations that are early in their life cycle, but which have potential to become major enterprises (emerging growth companies).


- - .-

(1 1.13) % (1 1.37) 96 (1 1.79) % (17.351% 0

-2

-4

-6

-8

-10

-12

-14

.16

. . .. . .. . ....

. . .... .- . . . . .. . .. .. . .. . ..... ..

-18 -




f? Russell 2000 Growth Index (expressed in US dollars) . . . . - . . -


Market % of net lnvesment H o I d i n g value assets

_. . .. ..

Diversified Commercial Services Corporate Executive Board Career Education Media General 'A' Advisory Board (The) Weight Watchers International G&K Services 'A' Plexus Strayer Education

68,795 35,045 23,700 12.400 9,845

12,350 20,297

2.700

2,356,229 1,577,025 1,422,000

449,376 427,667 422,864 367,376 171,720

. . _. Total tor DlverslRed Commercial Services

Health Care Distributors & Services Cooper 42,242 AMN Healthcare Services 49,542 Dynacare 53,750 Accredo Health 24,847 Vitalworks 94,700

. ..

Total for Health Care Distributors & Services

Biotechnology Allos Therapeutics Telih Techne Regenerori Pharmaceutical Charles River Laboratories International Celgene Harvard Bioscience SFBC International Exelixis CV Therapeuthics

Total for Biotechnology

Publishing Interactive Data R.H. Donnelley Pulitzer

140,683 83.886 25.946 43,246 17.800 34.446 58,590 16,947 35,037 13,250

. ..

201,463 45,623 18,697

Total for Publishing

Casinos & Gaming

,989,598 ,734.465 ,181,963 ,146,441 776.540

1,271,774 1.048.575

732,196 627,499 623,890 527,024 327,518 284,218 263,829 246,715

1.96 1.32 1.19 0.38 0.36 0.35 0.31 0.14

6.01

1.66 1.45 0 99 0.96 0.65

5.71

1.06 0.88 0.61 0.52 0.52 0.44 0.27 0.25 0.23 0.20

2,933,301 1,276,075

970,374

4.98

2.45 1.07 0 81

4.33

- Gtech Holdings 128,580 3,283,933 2.75

Argosy Gaming 11,500 326,600 0.27

Total for Casinos & Gamlng 4.02

Penn National Gaming 65,900 1,196,085 1 .oo

Oil & Gas Exploration & Production Pioneer Natural Resources 74,300 1,935,515 1.62 Chesapeake Energy 158,300 1,139,760 0.95 Petroquest Energy 196,620 1,095,173 0.92

Total tor 011 & Gas Exploration & Production 3.49

Restaurants Jack in the Box Sonic AFC Enterprises CBRL Group Famous Dave's Of America

33,450 1,063.710 0.88 32,236 1.012.533 0.85 28.900 903,125 0.76 27,250 831.670 0.70 41,245 323,773 0.27

Total tor Restaurants 3.46

US Small Cap Growth Fund


Holding Market X of net

value assets _ .

683.381 0 57 651,393 0.54 638,043 0.53 463.486 0.39 428,635 0 36 234,413 0.21 232.343 0.19 205,325 0 17

Market x of net Holdlng value assets Investment

Application Software NETIQ JDA Software Group lnformatica J. D. Edwards & Co. Activision Verint Systems Rational Software Precise Software Solutions

. . . . . . . . . . Investment

Semiconductors Integrated Device Technology 41,500 752,810 Conexant Systems 399,876 647,799 TriQuint Semiconductor 67,544 432,957 Lattice Semiconductor 49.192 429,938 Skyworks Solutions 47,587 264,109 Vitesse Semiconductor 36.695 114,121

Total for Semiconductors ... . . . . . .

30.198 23,050 89,992 38,147 14.750 20,750 28,300 21,500

0.63 0.54 0.36 0.36 0.22 0.10

2.21 .-

1.40 0.73

2.13 . -

1.30 0.79

Total for Application Software 2.96 Broadcasting & Cable TV Radio One '0' 112,541 1,673,485 Westwood One 26,145 873,766

- . - . . - Total for Broadcasting & Cable TV

Pharmaceuticals Salix Pharmaceuticals 62,342 951,339 0.79 Taro Pharmaceutical Industries 34,447 844,640 0.70 Array BioPharma 81,890 789,420 0.66 Shire Pharmaceuticals ADR 23,900 616,859 0.52 Scios 10,250 313,753 0.26

Total for Pharmaceuticals 2.93 ........

Diversified Financial Services Affiliated Managers Group 25,343 1,558,595 Dora1 Financial 28,050 936.590

Total for Diversified Financial Services . . . .

2.09

1.05 0.58 0.44

Packaged Foods & Meats Dreyer's Grdnd Ice Cream 31,046 2,129,756 1.78 JRJ Snack Foods 29,400 1,321,824 1.11

.. - -_ ........

Total for Packaged Foods & Meats 2.89

Data Processing Services Euronet Worldwide Forrester Research Global Payments

78,743 1,259,101 35,842 695,299 17,495 520,476

Total for Data Processlng Services 2.07 Internet Software & Services Vignette Tibco Software Retek SRA International 'A' Hotels.com 'N

404,850 797,555 0.66 139,440 775,286 0.65 27,000 656,100 0.55 20,650 557,137 0.47 10,600 447,638 0.37

Electronic Equipment & Instruments

Benchmark Electronics 28,000 812,000 0 68 Micrel 52,542 755,554 0.63

Total for Electronic Equipment & Instruments 2.05

Kopin 133.642 882,037 0 74

. .- Total for Internet Software &Services 2.70

0.71 0.48 0.47 0.44 0.36 0.23

Distributors Coach SCP Pool

23,046 1,265,225 1.06 35,696 990,921 0.83

Apparel Retail Ross Stores 21,045 Christopher & Banks 13,600 Abercrombie & Fitch 'A' 23,350 Chico's FAS 14,350 Urban Outfitters 12,250 dELiA's 'A' 53.992

Total for Apparel Retall .

857,584 575,280 563,202 521,192 425,320 275,359

Total for Distributors 1.89

Computer Storage & Peripherals

Sandisk 83,000 1,029,200 0.86 Storage Technology 72,995 1,165,730 0.98 2.69

1.66 0 55 0.28

Total for Computer Storage & Perlpherals 1.84 Homebuilding NVR Beazer Homes USA Mer it age

1,986,450 660,000 328,680

6,150 8.250 7,200

Specialty Stores Tractor Supply 25,950 1,842,191 1.54 Big 5 Sporting Goods 22,400 320,096 0.27

.

Total for Specially Stores 1.81 Total for Homebuilding 2.49

Aerospace & Defense Moog 'A' Alliant Techsystems ED0 United Defense Industries MTC Technologies

20,896 896,020 0.75 12,898 822,892 0.69 14,997 427,415 0.36 16,347 375.981 0.31 17,500 340,120 0.28

General Merchandise Stores BJ's Wholesale Club 30,991 1,193,154 1 .oo Fred's 25,247 928.585 0.77

Total for General Merchandise Stores 1.77 ........... . . . . . . . .

Total for Aerospace 8 Defense 2.39 Life & Health Insurance Stancorp Financial 36,949 2,050,669

Total for Life & Health Insurance

1 7 2

1.72 - Health Care Facilities

United Surgical Partners International 37,650 1,166,397 0.97 Community Health Systems 31,587 846.532 0.71 Triad Hospitals 15.793 669,307 0.56 Catalog Retail

J. Jill Group 53,340 2,024,253 1.69 Total for Health Care Facilities 2.24

Total for Catalog Retail 1.69

US Small Cap Growth Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Market X of net Holding value assets

Market 96 of net Investment Holding value assek

Alternative Carriers Commonwealth Telephone Enterprises 20.796 836,831 0.70

. Investment

Specialty Chemicals Albemarle OM Group

36,300 1,116,225 0.93 13,800 855.600 0.72

Total for Alternative Carriers 0.70 Total for Specialty Chemicals 1.65

Property & Casualty Insurance White Mountains Insurance Group 2,599 822.583 0.69 Semiconductor Equipment

ASM International 76,490 1,320,217 1 1 0 Varian Semiconductor Equipment Associates 9.800 332,514 0.28 Brooks-PRI Automation 12.350 315.666 0 17

Total for Semiconductor Equipment 1.65 __ . .. ._

Total for Property & Casualty Insurance 0.69

Insurance Brokers Brown & Brown 21,846 688.149 0.58

Total for Insurance Brokers 0.58 Construction & Farm Machinery & Heavy Trucks AGCO 93,500 1,823 250 1 5 3

Total for Construction & Farm Machinery & Heavy Trucks 1.53 Integrated Telecommunication Services IDT 'B' 37,350 601,335 0.50 D&E Communications 7,900 83,029 0.07

Auto Parts & Equipment AtvinMeritor 73.439 1,762,536 1.47 Total for integrated Telecommunication Services 0.57

Total for Auto Parts & Equipment 1.47 Oil &Gas Refining & Marketing & Transportation Frontier Oil 37,850 666,160 0 56

Total for Oil & Gas Refining & Marketing & Transportation 0.56 .. . . Home Furnishings

Furniture Brands International 55,483 1,678.361 1.40

Total for Home Furnishings 1.40 Leisure Facilities Cedar Fair -LP 27,995 665,161 0 56

Total for Leisure Facilities 0.56 . Movies & Entertainment

AMC Entertainment 115,100 1,634,420 1.37

Total for Movies & Entertainment 1.37 Environmental Services Stericycle 18,400 651,544 0 54

_ . .

Total for Envlmnmental Services 0.54 Banks Commerce Bancorp Southwest Bancorp of Texas

19,950 881.790 0.74 19,100 691,802 0.58

IT Consulting & Services Manhattan Associates 20,100 646,416 0.54 Total for Banks 1.32

Total for IT Consulting & SeNiCeS 0.54 Health Care Equipment Viasys Healthcare Wright Medical Group Fisher Scientific International

34.100 595,045 0 50 17.600 354,816 0 30 20,400 571.200 0.48

Office Services & Supplies Moore Corp 53,300 611,884 0 51

Total for Office Services &Supplies 0.51 Total for Health Care Equipment 1.28

Networking Equipment Emulex Extreme Networks

Multi-Sector Holdings Arbitron 37,743 849.595 0.71

67.700 661,429 0 55 19,146 597.355 0.50

Total for Multi-Sector Holdings 0.50

0.50

Total for Networking Equipment 1.26

1,195,864 1 .oo

Building Products Griffon Integrated Oil & Gas

Spinnaker Exploration

Total for Integrated Oil & Gas _

592,703 .. .

32 746 33,200

41,400 . . ..

18,800 74.200 40,842

Total for Building Products 0.50

0.50

1.00

1,168,722 0.98

Industrial Conglomerates Actuant 'A' Oil & Gas Drilling

Patterson Energy

Total for Oil & Gas Drilling

14,350 591,937

Total for Industrial Conglomerates 0.50 0.98

Real Estate Investment Trusts Ventas 42 750 545,062 0 46

Total for Real Estate Investment Trusts 0.46 . -. - Telecommunications Equipment

Harris Crown Castle International Harmonic

681,312 0.57 291,606 0.24 149,441 0.13


__.

1 '

US Small Cap Growth Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


Highways & Railtracks Pacer International 20.400 35 1,696 0.29

Total for Highways & Raibacks 0.29

. - .. ..

. - . . .. .- . .

Wireless Telecommunication Services RF Micro Devices 36,795 280 378 0 23

Total for Wireless Telecommunication Services 0.23 ....

Diversified Metals & Mining Liquidmetal Technologies 21,400 248,240 0 21

Total for Diversified Metals & Mining 0.21 .. . -

Total transferable securltles admitted to official exchange listing or dealt in on another regulated market 98.35


Warp Solutions '6 (1) 69,400 0 0.00

Total for Application Software 0.00

Application Software

. . . . . .. ... .


Total investment Securities 117,574,721 98.35

Total NAV 119,549,389 100.00

(1) This seurity is valued at its fair market value

-. .

_.-

US Small Cap Value Fund Investment aims To provide an attractive rate of return, measured in US dollars, by investing in the common stocks of small to medium sized corporations that the Company believes to be undervalued relative to the stock market in general at the time of purchase. The Fund will invest primarily in corporations domiciled in the US.


-- . . - .

(6.71196 (5.221% U

-1

-2 --

-3

-4 -

.5 --

-7 - - -



Fund (net of expenses) Class E shares

Russell 2500 Index (expressed in US dollars)




Banks Zions Bancorp City National Banknorth Group Associated BancCorp United Bankshares Hibernia 'A' New York Community Bancorp Independence Community Bank Cullen,'Trost Bankers FirstMerit Fulton Financial Webster Financial Federal Agricultural Mortgage 'C' non vtg shs Sovereign Bancorp Republic Bancorp Downey Financial Bankunited Financial 'A'

18,500 963,850 1.12 15,000 806.250 0.94 30,600 796,212 0.93 16,850 635.414 0.74 19,700 578,786 0.68 26.900 532.351 0.62 17,100 14,500 10,600 13,700 18.325 7,100

10,000 16,400 15.000 3,600 5,800

463,410 416,585 381,070 377,846 346,892 271,504

267,000

224,100 170,280 111,070

245,180

Total for Banks

Real Estate Investment Trusts Apartment Investment & Management General Growth Properties The Rouse Company AMB Property ProLogis Weingarten Realty Investors Duke Realty PS Business Parks United Dominion Realty Trust Meristar Hospitality Kimco Realty Camden Property Trust

'A' 12,400 11,700 15,700 16,600 17,400 11,650 13,200

610,080 596,700 518.1 00 514,600 452,400 412,410 382,140

10,600 370,470 22,400 352,800 22,500 343,125 8,200 274,618 7,400 274,022

Kilroy Realty FelCor Lodging Trust ERE Properties 'A' ShurRard Storage Centers 'A' Arden Realty Trizec Canada Pan Pacific Retail Properties Regency Centers Reckson Associates Realty

Total for Real Estate Investment Trusts -

9,900 14,100 8,200 6.900 8,300

12,652 5.500 2,800 2.200

_- ...

264,825 258,735 255.102 239,430 236,135 203,727 187,990 83,020 54,780

8.05

0.54 0.49 0.45 0 44 0.41 0.32

0.31 0 29 0 26 0.20 0 13

8.87

0.71 0.70 0.61 0.60 0.53 0.48 0.45 0.43 0 41 0.40 0.32 0.32 0.31 0.30 0.30 0.28 0.28 0.24 0.22 0.10 0.06

Auto Parts & Equipment Superior Industries International 27,300 1,262,625 Magna International 'A' subord vtg shs 11,200 771,120 Lear 9,900 457.875 Tower Automotive 29,000 404,550 BorgWarner 4,800 277,248

Total for Auto Parts & Equipment . ... . . . .

Biotechnology Transkaryotic Therapies Cephalon Telih Protein Design Labs CV Therapeuthics Gilead Sciences Medimmune Cambrex

15,800 12,600 34,500 38,300 18,800 10,000 11,400

1,100

569,590 569,520 431,250 415,938 350.056 328,800 300,960 44,110

1.48 0.90 0.54 0.47 0.32

3.71

0.67 0.67 0.50 0.49 0.41 0.38 0.35 0.05

Total for Biotechnology 3.52

US Small Cap Value Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

H o I d i n g _ -. - -

16.000 17,000 15,400 8,100

5,600 1,000

8,600

Market value

656,480

517,440 498,150 287.154 276,304

25,550

587,690

. . . . .

I of net assets

0 76 0 69 0 61 0.58 0 34 0.32 0 03


H o I d I n g value assets Investment

Diversified Financial Services Mercantile Bankshares Federated Investors '6 Compass Bancshares Affiliated Managers Group Dora1 Financial Legg Mason Trustmark

....

Oiversified Commercial Services Viad 27.200 707,200 0.83 Pittston Brink's Group 26,400 633,600 0.74 Corinthian Colleges 9,800 332,122 0.39 ITT Educational Services 4,100 89,380 0.10

Total for Diversified Commercial Services 2.06 . .

Oiversified Chemicals FMC 23,000 693,910 0 80 Engelhard 15,300 433,296 0.51 Georgia Gulf 11,500 304,060 0.36 Solutia 36,500 256,230 0.30

Total for Diversified Chemicals 1.97 . . - - _.

Total for Diversified Financial Services 3.33

0.88 0.68 0.50 0.43 0.40 0.32

Oil & Gas Exploration & Production Pogo Producing XTO Energy Pioneer Natural Resources Noble Energy Chesapeake Energy Stone Energy

Total for Oil & Gas Exploration & Production ._.. . -. . . . . . . . . . .

23,000 750,260 28,100 578,860 16,500 429,825 10,200 367,710 47,700 343,440

6,900 277,725 . .._ - ........ ....

Health Care Distributors & Services Covance 24,200 453,750 0.52 Laboratoty 9,200 419,980 0.49 AdvancePCS 15,600 373,464 0.44 Apria Healthcare Group 15,100 338,240 0.40

Total for Health Care Distributors & Services 1.85 . .

3.21

0.54 0.52 0.42 0.42 0.38 0.36 0.31

Apparel Retail Stage Stores Urban Outfitters Genesco Christopher & Banks Pacific Sunwear of California dELiA's 'A' Charlotte Russe Holding

Total for Apparel Retail

13,200 458 568 13,000 451,360 14,900 362,815 8,400 355,320

14,800 328,116 59,600 303,960 11.800 263,494

_. ___. . -

Industrial Machinery Flowserve 24,100 718,180 0.83 Robbins &Myers 11,600 304.500 0.36 Manitowoc 6,900 244,881 0.29 Pall 11,800 244.850 0.29

Total for Industrial Machinery 1.77 . . . . . . .

2.95

0.91 0.85 0.40 0.38

Electric Utilities Calpinc Potomac Electric Power Pinnacle West Capital TECO Energy

Total for Electric Utilities ....

Aerospace & Defense Goodrich 25,100 685.732 0.80 GenCorp 31,300 447,590 0.52 Titan 14,500 265,205 0.32

Total for Aerospace & Defense 1.64 .... ... ._ .

111,600 784,548 33,700 723,876

8,600 339,700 324,225 13.100 - .- . . ........

2.54

0.58 0.57 0.48 0.47 0.43

Trucking Arkansas Best 15,500 394,940 0.46 US Freightways 9,800 371,126 0.43 Swift Transportation 15,000 349.500 0.41 Yellow 4,000 129,600 0.15 CNF 3,200 121.536 0.14 Werner Enterprises 800 17,048 0.03

Total for Trucking 1.62 . ..

Homebuilding Kaufman &Broad Home Toll Brothers MDC Holdings Beazer Homes USA StandadPacific

9,600 494,496 16.700 489,310 7,900 410,800 5.000 400,000

10,600 371,848

Total for Homebuilding 2.53

Construction & Farm Machinery & Heavy Trucks Navistar International 25,100 803,200 0.94 Cummins Engine 18,500 612,350 0.72 Wabash National 40.500 405.000 0.47 AGCO 16,800 327,600 0.38

Multi-line Insurance PartnerRe 12.900 631,455 0.74 American Financial Group 21,400 51 1,460 0.60 Horace Mann Educators 12,400 231,508 0.27

Total for Multi-line Insurance 1.61 ............. -_

Total for Construction &Farm Machinery & Heavy Trucks 2.51

Oil & Gas Drilling Precision Drilling Rowan Companies Grey Wolf

Consumer Finance GATX Provident Financial Group Providian Financial

27,300 821,730 0.96 24,300 704,943 0.82 55,200 324,576 0.38

18,000 625,320 20,000 429,000 70,300 287,527

.......

0.73 0.50 0.34

Total for Oil & Gas Drilling 1.57 Total for Consumer Finance 2.16

Home Furnishings Mohawk Industries 15,180 934,025 1.09 Furniture Brands International 12,700 384,175 0 46

Total for Home Furnishings 1.55 ...

Managed Health Care Caremark Rx Health Net Anthem

57,500 948,750 1.11 16.100 430,997 0.50 6.300 425,124 0.50

Total for Managed Health Care

...

2.11

US Small Cap Value Fund

Statement of investments (con tin ued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

H o I d i n g Market % of net

value assets Market % of net

H o I d i n g value assets Investment Investment

Application Software Pinnacle Systems Mentor Graphics Macromedia

Personal Products NBTY 78,400

18,100 77,700

861,538 1.01 257,382 0.30

0.23 196,914

1.54 . . .

59,100 914,868 1.07

Total for Personal Products 1.07

Total for Appllcatlon Software Specialty Stores Foot Locker Autoione Gart Sports

26,900 388,705 0.45 3.600 278,280 0.33 8.400 239,316 0.28

Semiconductor Equipment Brooks-PRI Automation Kulicke & Soffa lridustries Lam Research Photronics Axceiis Technologies

15.200 22,800 15,000 8.500

14,200

388.5 12 0 45 282,492 0.33 169,700 0.32 160,990 0.19 160.460 0.19

Total for SpeclaHy Stores

Airlines

1.06

. .

Total for Semiconductor Equipment

Paper Produets

.. . 1,48 SkyWest Delta Air Lines

12,600 294,714 0.34 11.400 228.000 0.27

AMR 13,200 222,552 0.26 Atlantic Coast Airlines Holdings 4.300 93,310 0.11

Boise Cascade Bowater

16,500 569,745 10.200 554.574

-. 0 66 65 Total for Airlines 0.98

Roch.Tenn 'A' 5,100 93,585 0.11 Envlronmentsl Services .

1'42 Allied Waste Industries 43.800 425.298 0 50 Total for Paper Products

Tetra Tech 27,600 405.720 0 47

0,49 Total for Environmental Services 0.97 Health Care Equlpment St Jiide Medical 5.700 420,945 Advanced Neuromodulation Systems 10,700 326.350 0 38 Conceptus 17,600 290,224 0.34 Semiconductors Therasense 9,200 169,924 0 20 Cypress Semiconductor 14,000 212,520 0 25

1,41 Fairchild Semiconductor International 'A' 8,600 208,980 0.24 Shvworks Solutions 18,416 102,209 0.12 Total for Health Care Equipment

Reinsurance Everest Re Group

Total for Reinsurance ...

ChipPAC Conexant Systems

19,800 1,107,810 1.30 ~

~ - Total for Semiconductors 1.30

Restaurants CBRL Group

22,900 483,190 0.56 Sonic 11,800 361,198 0.42

0.23 Total for Restaurants 8,100 194,562 14,200 73,556 0.09

15,700 97,026 0.12 52,600 85,212 0.10

0.83

Pharmaceuticals InterMune Scios OS1 Pharmaceuticals Pozen

21,800 665.336 0.78 1,100 34,551 0.04

0.82 . . - .. ..

1.30 Property & Casualty Insurance Berkley (W.R.1 Ohio Casualty

6.800 374,000 0.44 13,300 277,970 0.33

Total for Pharmaceutlcals

Life & Health Insurance Reinsurance Group Scottish Annuity & Life Holdings Protective Life

Total for Properry &Casualty Insurance 0.77 16,400 19,200

5,700

505,448 0.59 366,336 0.43 188,670 0.22 Electronic Equipment & Instruments

Varian Avnet

Total for Electronic Equipment & Instruments ~ .

11,400 375,630 12.600 277.074

0.44 0.32

0.76

Total tor Llle & Health Insurance 1.24

Multi-Utilities & Unregulated Power DPL 16,200 MDU Resources Group 12.600 PNM Resources 11,400

428,490 0.50 331,254 0.39 275.880 0.32

Electrical Components & Equipment Cooper Industries ' A 16,300 640,590 0.75

Total for Multi-Utlllties & Unregulated Power 1.21 Total tor Electrlcal Components & Equipment 0.75

Food Distributors Fresh Del Monte Produce Fleming Companies

23,200 580,000 0.68 18,800 341.220 0.40

Paper Packaging 0 74 Smurfrt-Stone Container 41,100 633.762

Total for Paper Packaging 0.74 - -. ._ . ... - ..- _..

Total for Food Distributors 1.08

Oil & Gas Equipment & Services Tidewater Grant Prideco

11,000 362,120 0.42 19,500 265,200 0.31

Health Care Supplies Varian Medical Systems Steris

12.500 506,875 0.59 21,600 412,776 0.49

Total for 011 &Gas Equlpment & Services 0.73 Total for Health Care Supplies 1.08

.. . . . ..




Leisure Products Hdsbro 28.000 379,680 0 44 Racing Champions Ertl 10,500 193.935 0.23

Total for Leisure Products 0.67 . . .


Systems Software -. .. _-

Henry (Jack1 &Associates 13,500 225.315 0.26 Diebold 5,900 219,716 0 26

Total for Systems Software 0.52 __ -_ .. -

Casinos & Gaming Gttxh Holdings 18,200 464,828 0 54 Pactiv 9 400 223,720 0 26 Argosy Gaming 3,300 93,720 0 11 Owens Illinois 15 000 206,100 0 24

Total for Casinos &Gaming 0.65 Total for Metal & Glass Containers 0.50

Metal & Glass Containers

.- _ _

Home Improvement Retail Diversified Metals & Mining Linens 'n Thing; 15.900 521,679 0.61 FreeporbMcMoRan Copper &Gold '6 22,600 403,410 0 47

_. .- .- -~ Total for Home Improvement Retail 0.61 Total for Diversified Metals & Mining 0.47

Soft Drinks Pppsi Bottling Group 16,400 505,120

Total for Soft Drinks .......

Broadcasting & Cable TV Cumulus Media 'A' 25.500 351,390 Charter Communications 'K 36,800 150,144

Total for BroadcasEng & Cable TV .... ...

Health Care Facilities 0 59 Medcath 13,000 222,300

Universal Hedlth Services 'B' 3,600 176,400 0.59

Total for Health Caru Facilities

__

0.41 Tobacco 0.18 R.J. Reynolds Tobacco 7,400 397.750

0.59 Total for Tobacco ~ -

0.26 0.21

0.47

0.47

0.47

Apparel, Accessories & Luxury Goods Quiksilver 20,100 498.480 0.58 Graffech International 28,100 353.010 0.41

Total for Apparel, Accessories & Luxury Goods 0.58 Total for Heavy Electrical Equipment 0.41

Heavy Electrical Equipment

. . . . . . . . . . ._

Telecommunications Equipment Powerwave Technologies Andrew DMC Stratex Networks Harmonic

Computer & Electronics Retail 29,000 265,640 (1 31 GameStop 16.200 340,038 0 40

79,998 0 09 Total for Computer & Electronics Retail 0.40 39,800 19,800 72,448 0.08

. _. 5.600 80,248 010 -

o,5B Construction Materials Texas Industries 10,600 333,794 0.39 Total for Telecommunications Equipment

Household Appliances Stanley Works 11,700 479,817 0.56

Total for Household Appliances 0.56 . . . . . .

Commercial Printing Valassis CommuniLations 13,000 474,500 0 55

Total for Commercial Printing 0.55 - -

Steel AK Steel Holding 29,000 371,490 0 43 United States Steel 4,700 93,483 0 11

Total for Steel 0.54 ...

Internet Software & Services Tibco Software 41.900 232,964 0.27 Secure Computing 28,600 215,930 0.25

Total for Internet Software & Services 0.52 . --_

Catalog Retail J Jill Group 11,800 447.810 0 52

Total for Catalog Retail 0.52 ..... .

._ _ _ Total for Construction Materials 0.39

Distillers & Vintners Constellation Brands 'A' 10,200 326,400 0 38

Total for Distillers & Vintners 0.38 -. .~

Food Retail Whole Foods Market 5 700 274,854 0 32

Total for Food Retail 0.32 ~_ _ . -

Real Estate Management & Development Trizec Properties 14,300 241,098 0.28 Trizec Properties 'CTF' 1,647 27,834 0 04

Total for Real Estate Management & Development 0.32 __ - _ .-

Office Electronics Ikon Office Solutions 27,800 261,320 0.31

Total for m i c e Electronics 0.31 - ....

Gas Utilities Questar 10,100 249,470 0.29 Kinder Morgan Management 1 16 0.00

Total for Gas Utilities 0.29


Market % Of net Investment Holding value assets

Building Products _. ~ ._ _-_- .

York International 7,100 239,909 0 28

Total for Bullding Products 0.28 ..

Publishing Scholastic 5,900 223,610 0 26

Total for Publishing 0.26 . ..

Railroads Railamerica 17,800 192,596 0.23

Total for Railroads 0.23 - _ _ .-. . .

Commodity Chemicals Nova Chemicals 7,100 160,034 0.19

Total for Commodity Chemicals 0.19 . _ _ _

Internet Retail Global Sports 21,400 159,430 0.19

Total for Internet Retail 0.19 . .... ... . . - .

Computer Storage & Peripherals Western Digital 25,700 83,525 0 10

Total for Computer Storage & Peripherals __ _

0.10

IT Consulting & Services Zomax 2,500 9,750 0 01

Total for IT Consulting & Services

Total transferable securltles admitted to official exchange listing or dealt in on another rOgUlated market

_ _ 0.01

. -~ -

97.14


Oil & Gas Equipment & Services Eagle Geophysiral

Total for Oil & Gas Equipment &Services

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

Total Investment Securities

Total NAV

_ __

. .

148 0 0 00

0.00

0.00

83,072.581 97.14

85,521,258 100.00 .- ... - .. . . .- .. .. ..

World Equity Fund

Investment aims To seek long term capital appreciation, measured in US dollars, through investment primarily in equity securities of medium to large sized companies listed on the world's stock exchanges.

Change ir i riet asset value per share For the six months ended 30 June 2002

(9.791% (10.011% (10.501% (8.821% 0

-2

4

-6

-8

-10

.... .

12 .. I _




!' MSCl World (Net) Index (expressed in US dollars) - .


Investment

United States of America Pfizer Citigroup CocaCola Microsoft Washington Mutual Wal-Mart Stores J.P. Morgan Chase & Co HCA Exxon Mobil Tenet Healthcare Raytheon Company General Electric FedEx American International Group Kimberly-Clark Exeion New York Times 'A Lehman Brothers Holdings Verizon Communications Wyeth Intel Federated Department Stores International Business Machines Amgen Cisco Systems Viacom non-vtg 'B Travelers Property Casualty ' A Applied Materials Delphi Automotive Systems Merck 8, Co Philip Morris Omnicom Group Bank of America Pharmacia Home Depot Transocean Apache Dell Computer First Data Texas Instruments Office Depot Veritas Software Best Buy Co Sun Microsystems Lamar Advertising Mercury Interactive

Holding

189,660 152,616 93,310 89,480

113,050 71,050

112,140 78.610 87,370 49,300 80,690

110.360 56,760 43,480 45.430 50,850 50.340 38,630 59,450 44,820

123,460 55,100 29,010 49,090

145,730 45,660

114,360 103,360 148,420 37,700 43,130 40,910 24,240 43.720 43,190 46,190 23,710 49,300 34.390 52,200 70,740 57.590 31,290

194,230 25,630 35,420

Market value

6,638,100 5,913,870 5,225,360 4,894.556 4.195.286 3,908,461 3,803,789 3,733,975 3,575,180 3.527.415 3,288,118 3,205,958 3,030,984 2,966,640 2,816,660 2,659,455 2,592,510 2,415,148 2,386,918 2.294.784 2,255,614 2,187,470 2,088,720 2,055,889 2,032,934 2,025,934 2,024,172 1,965,907 1,959,144 1,909.128 1,883,918 1,873,678 1,705,526 1,637,314 1,586.369 1,438,819 1,362,851 1,288,702 1,279,308 1,237,140 1,188,432 1,139,706 1 , I 35,827

973,092 953,692 813,243

96 of net assets

2.65 2.36 2.08 1.96 1.68 1.57 1.52 1.50 1.43 1.41 1.32 1.29 1.21 1 1 9 1.13 1.07 1 04 0.97 0.96 0.92 0.90 0.88 0.84 0.82 0.81 0.81 0.81 0.79 0.79 0.77 0.76 0.75 0.68 0.66 0.64 0.58 0.55 0.52 0.51 0.50 0.48 0.46 0.46 0.39 0.38 0.33


United Kingdom GlaxoSmithkline Vodafone Group Barclays Lattice Group BAE Systems British Airways Allied Domecq Reed Elsevier CGNU Amvescap WPP Group British Sky Broadcasting

229,877 3,446,025

361,944 1,026,497

520,213 880,150 331,020 201,790 207,860 193,710 150,600 126,390

4,968,531 4,727,343 3,045,346 2,675,531 2,656,331 2,498,672 2,170,858 1,917,751 1.671.282 1,578,178 1,271,718 1,211,768

46.13

1.99 1 .a9 1.22 1.07 1.06 1 .oo 0.87 0.77 0.67 0.63 0.51 0.49


World Equity Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


...

Japan Canon Fuji Photo Film Tokyo Gas Matsushlta Electrical lndiistrial NTT Docomo Toyota Motor Takeda Chemical Industries Dai Nippon Printing Mitsui Sumitomo Insurance Sumitomo Trust & Banking Sony

......... -. _- Total for Japan

74,000 83,000

941,000 176,000

931 78,800 47,000

129,000 314,000 319,000 18,800

2,796,763 2,679,877 2,614,325 2,400.801 2,291,382 2,090,639 2,062.573 1,712,323 1,689,721

999,132 1,532,989

1.12 1.07 1.05 0.96 0.92 0.84 0.83 0.69 0.68 0.61 0.40

9.17

France BNP Paribas 72,710 4,021,094 1.61 TotalFinaElf 'R' 22.160 3,597,772 1.44 Compagnie de Saint-Gobain 69,080 3,100,618 1.24

Aventis 39,660 2,810,197 1.13 Lafarge 19,750 1,969,929 0.79


Schneider Electric 55,830 3,002,117 1.20

. . . . . . .

Netherlands Royal Dutch Petroleum 86,120 4,796.729 1.92 ING Groep 128,640 3,303,022 1.32 Koninklijke KPN 665,450 3,114,984 1.25 Koninklijke Philips Electronics 93,319 2,605,301 1.04 DSM 42,770 I ,984.754 0 80 ASML Holding 83,550 1,322,641 0.53

Total for Netherlands 6.86 . .

Germany BASF NPV 94,265 4,389,290 Muenchener Rueckversicherungsgesellschaft Regd 12,540 2,972,151 Volkswagen 38,270 1,844,337 Siemens 26,830 1,610,436 SAP 15,530 1,522,173 lnfineon Technologies 77,790 1,227,616

. _ . . ~. .

Total for Germany

1.76

1.19 0.74 0.65 0.61 0.49

5.44

Switzerland Novartis Regd NestlC Regd Holcim ' 0 Zurich Financial Services

16,740 3,374,858 1.35 11,810 2,753,617 1.10 9,573 2.196.660 0.88 7.271 1,469,336 0.60


Italy UniCredito ltaliano 752,950 3,405.600 1.37

177,360 2,819,964 1 1 3 EN1

Total for Italy 2.50 -_ .

Market 96 of net Investment Holdlng value assets

Sweden Nordea 525 740 2,860 252 1 1 5


..

_ _ -

Hong Kong CLP Holdings 613,100 2,436,695 0.98

Total for Hong Kong 0.90 .. -. -

Portugal Portugal Telecom SGPS Regd 261,900 1,849,284 0 74

- ..


Bermuda Accenture 'A' 90,260 1,714,940 0.69

Total for Bermuda 0.69

Norway Statoil 189,650 1,693,236 0 68

Total for Norway 0.60 . .- . __. _.

Spain Endesa 110,300 1,602,324 0.64

Total for Spain 0.64 ... - .....

Belgium Fortis 72 710 1 549,557 0 62



Total NAV 249,404,106 100.00

. __

__

...

Fin I and Nokia 'A' 144,900 2,120,697 0.85 Stora Enso 'H' 106,160 1,487,666 0.60

Total for Finland 1.45 .~ ~- ..

Emerging Markets Debt Fund Investment aims Statement of investments To seek to maximise total return, measured in US dollars, through investment in the debt securities of government and government- related issuers located in emerging countries. The Fund may invest in debt securities of entities organised to restructure outstanding debt of such issuers, together with investing in the debt securities of corporate issuers located in or organised under the laws of emerging countries.

Chdrtge in net asset value per share For the six months ended 30 June 2002

0 95% 0 69% 0 00% 0.91% 1.0 .

0 8

0.6

0.4

0.2

0

. .. .. .. .

B . .. .. . -




JPM Emerging Markets Bond Index Global (expressed in US dollars)


Nominal in US dollars

unless Market % of net Investment specified value assets

Mexico United Mexican States global

United Mexican States 11.375%/2016 11.310,000 13,939,575 5.06 United Mexican States 11.5%/2026 7,380,000 9.361.530 3 40

-. ..... .

9 875%/2010 18,110.000 20,237,925 7.33

Petroleos Mexicanos unsubord SerP 9.5%/2027 1.38 3,500,000 3,806,250 United Mexican States SerXW 10.375%/2009 2,600,000 2,973,100 Pemex Project Funding Master Trust unsecur co gtd 9.125%/2010 2,670,000 2,803,500 Pemex Master Trust SerRegS 8.625% /2022 2,590,000 2,531,725

1,550,000 1,162,500 Grupo lusacell sr nts 14.25% /ZOO6 United Mexican States debentures SerA VRR 0% /2003 12) 50,720,000 131,872

Total for Mexico . . .- . .

Brazil Republic of Brazil Brady C Ser20YR 8%/2014 16,020,644 10,133,057 Republic of Brazil unsubord unsecur 8.875% /2024 20,820.000 10,097,700 Republic of Brazil govt gtd Brady Disc Ser ZL Ser30YR FRB 3 0625!4/2024 11) 16,230,000 9,616.275 Republic of Brazil god gtd Brady DCB Euro Bearer Serl8YR FRB 3.125%/2012 (1) 14,420,000 7.678.650 Republic of Brazil New Money Bds L Euro govt gtd Serl5YR FRB

6,777.650 4,337,696 3.125%/2009 (1) Republic of Brazil DCB Euro Regd govt gtd FRN 3.125%/2012 111 3,470,000 1,847,775 Hepublic of Brazil unsubord 11% /2040 1,490,000 834.400

Total for Bratll

Russia and former Republics of the Soviet Union Russian Federation unsecur unsubord SerRegS 12.75% /2028 13,900,000 16,714,750 Russian Federation unsubord SerRegS

7,920,000 8,391,240 step can 10% /2007 Russian Federation unsubord SerRegS 5%/2007 11) 6,367,748 4,421,605 Russian Federation unsubord Ser144A priv plmt step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 3,460,000 2,402,538

Total for Russia and former Republics of the Soviet Unlon .

Malaysia Government of Malaysia 7.5% /2011

Total for Malaysia

11,345,000 12,054.879 -~

Venezuela Republic of Venezuela 9.25% /2027 10,005,000 6,403,200 Republlc of Venezuela Brady debentures SerDL FRB 2.875%/2007 (1) 3,142,811 2,357,108 Republic of Venezuela govt gtd Brady SerW-A 6.75% /2020 2.620.000 1,974,825 Republlc of Venezuela govt gtd SerW-B 6.75% /2020 750,000 556,875 Republic of Venezuela debentures 0% /2020 (2) 16,850 0

.

Total for Venezuela

1.08

I .02

0.92 0.42

0.05

20.66

3 68

3.66

3.49

2.79

1.57

0.67 0.30

16.16

6.06

3.04

1.60

0.88

11.58

4.37

4.37

2.32

0.86

0.72

0.20 0.00

4.10

Emerging Markets Debt Fund


lnvesbnent

Nomlnal In US dollars

unless specltled

South Korea Korea Electric Power unsecur unsubord 6.375% /2003 Korea Electric Power debentures 7.75%/2013 Republic of Korea unsecur unsubord 8.875% /2008 Korea Elkctric Power unsecur unsubord 6.375% /2003

4,100,000

2,250,000

1,925,000

200,000

Total for South Korea

Market value

-

4,273.020

2,499,728

2,284,783

208,440 .

96 of net assets Investment


unless Market % of net specified value assets

.-

Tunisia Banque Centrale de Tunisle unsubord

1.54 7.375%/2012 3.720.000 3,589,800 1.30

0.91 Total for Tunisia 1.30 ......... - ......

0.83 Jamaica

0.08

3.36

Government of Jamaica nts 10 625%/2017 2,600,000 2,782,000 1.01

- Total for Jamaica 1.01 ....

lvorv Coast Philippines 1vor;Coast Ser2OYR FLlRB 2%/2018 (1) 8,810,000 1,710,902 0.62 Republic of Philippines 9.375% /2017 4,660,000 4,753,200 1.72 Ivory Coast Ser20YR POI 2%/2018 (1) 4,754,750 1,046,045 0.38 Republic of Philippines nts 8.375% /2009 3,720,000 3.706.050 1 35 .

.- -. .

Total for Philippines 3.07

Argentina Republic of Argentine god gtd Brady SerL-GP 6% /2023 8.140.000 3,500,200 1.27 Republic of Argentina 11.375% /2010 11,140,000 2,116.600 0.77 Republic of Argentina unsubord unsecur 11.75% /2009 6,160,000 1,170,400 0.42 Republic of Argentina 11.75%/2015 3,140,000 541,650 0.20 Republic of Argentina iinsecur FRB 12.375%/2012 (1) 1.000.000 200.000 0.07

Total for Argentina 2.73 .... . . ~~ .-

Dominican Republic Dominican Republic unsecur unsubord SerRegS 9.5% /ZOO6 6,735,000 7,186.615 2.61

Total for Dominican Republic 2.61

Total for Ivory Coast 1.00

Turkey Republic of Turkey unsecur sr unsubord 12.375% /2009 2,430,000 2,256,863 0.82

Total for Turkey 0.82 - .- . . -_ . . . . . . . __

Nigeria Central Bank of Nigeria Brady S e r W step cpn 6.25% to 15/11/2020 2,000,000 1,336,600 0.48 Government of Nigeria govt gtd SerRC 5.092%/2010 1,979,000 712,440 0.26 Central Bank of Nigeria 0% /2020 2,000 0 0.00

. . .... - Total for Nigeria 0.74

Indonesia Pindo Deli Finance co gtd 10 75% /2007 7,030,000 1,616,900 0 59

......

Total tor Indonesia Colombia

0.59

Republic of Colombia .... nts 10% /2012 6,460,000 6,088,550 2.21 Ukraine Total for Colombia 2.21 Government of Ukraine sr nts SerReg 11%/2007 1,578,860 1,603,332 0.58

. . . . ~

. . . . . . . . . . . .

Total tor Ukraine 0.58 Peru Republic of Peru SerPOYR FLlRB 4%/2017 (1) 5,310,000 3,504,600 Republic of Peru Brady Ser2OYR POI

1.27 Croatia Croatia Brady SerA FRB 2.875%/2010 (1) 1,545,454 1,539,659 0.56

4.5%/2017 (1) 3,257,100 2,361,398 0.86 ~ . . . _- -_ . - Total for Croatia 0.56 .. -

Total for Peru 2.13

Ecuador Republic ot Ecuador SerRegS step cpn Panama

Republic of Panama global 9.625'4 /2011 3,205,000 3,108.850 1.12 5%/2030 (1) 1,490,000 752.450 0.27 Republic of Panama global 9.375% /2029 1,350,000 1,350,000 0.49 ... .

Republic of Panama Brady PDI debentures Ser2OYR FRB 2.625%/2016 (1) 1,569,239 1,176,929 0.43

Total for Ecuador

. . .

0.27

Total for Panama 2.04 Poland Netia Holdings II co gtd SerB 13.125%/2009 1.500.000 240,000 0.09

... .~ -. ..... B u I g a r i a Republic of Bulgaria SerRegS 8.25% /2015 2,679.000 2,658,908 0.96 . . . . Bulgaria Brady SerA FLIRB FRB 2.813%/2012 (11 2,550,000 2,320.500 0.85 Total transferable securities admitted

Total for Bulgaria 1.81 in on another regulated market 85.46

Qatar State of Qatar sr unsecur SerRegS 9.75%/2030 3,790,000 4,609,588 1.67

Total for Qatar 1.67

Total tor Poland 0.09 ....

. to offlclal exchange listing or dealt

.... - .......

. .

Emerging Markets Debt Fund

State men t of invest men ts (con ti nued) Other transferable securities not admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment

Holdin$/ Nominal in US dollars

unless Market 96 of net specified value assets

Russia and former Republics of the Soviet Union Sojuzzdravexport defaulted loan 13/02/1991 2,790,000 Soluzzdravexport defaulted loan 03/05/1991 2,444,400 Sojuzzdravexport defaulted loan 07/06/1991 2,012,800 Rusbian FTO Tekser lrisaat Inv. defaulted loan 25/11/1991 1,707,078 Soluzzdravexport defaulted loan 20/05/1991 1,326,000 Russian FTO AfO Raznoexport defaulted loan 31/01/1993 1.033.834

Russian FTO Tekser lnsaat Inv. defaulted loan 25/12/1991 414,309 h e x defaulted loan 19/01/1991 372.500 Russian FTO Tekser lnsaat Inv. defaulted loan 26/10/1991 362,15 1 Sojuzzdravexport defaulted loan 22/04/1991 345,600 Unex defaulted loan 17/12/1990 316.000 Russian FTO Tekser lnsaat lnv. defaulted loan 25/03/1992 249,398 Altajuneshtorg defaulted loan 13/01/1992 84,460

2,139,119 1,854,916 1,520,384

1,286,710 1,003,981

748,237

312.285 286.526

272.971 262,635 244,270

187,984 61,985

0.79 0.67 0.55

0.47 0.36

0.27

0.11 0.10

0.10 0.10 0.09

0.07 0.02

Total for Russia and former Republics of the Soviet Union 3.70

Morocco Morocco Tranche 0% /ZOO9 7,338,845 6,494,877 2.36

Total for Morocco 2.36 . -. ._ .- -_ -_ .- - . ...

Indonesia Tliwi Kimia International co gtd 13.25% /2049 4,740,000 1,137,600 0.41 Tjiwi Kimia Finance Mauritius co gtd 10% /2004 2,430,000 583,200 0 21

Total for Indonesia

Algeria Algeria Loan Tr l 0% /ZOO6

0.62

1,668,937 1,502,043 0.54

Total for Algeria 0.54

Colombia Occidente Rule 144A Wts exp. 15/03/2004 5,013 5,013 0.00

. . . . . .- .

Total for Colombia 0.00



Total NAV 275,646,086 100.00

(1) Variable coupon rates are those quoted as of 30 June 2002. (21 Holders receivable payment in US dollars is based on oil exports.

Euro Bond Fund

Investment aims Statement of investments To provide an attractive rate of return, measured in Euro, through investment in euro denominated fixed income securities of high quality issued by governments, agencies and corporations.


Change in net asset value per share For the six months ended 30 June 2002 Investment

Nominal in Euro unless Market % of net

specified value assets

170% 150% 0 96% 2 30% Government Bonds -. _- .. 2 5

2.0

1.5

1 .o

0.5

n

France Government of France OAT 5.5% /2010 Government ot France OAT 4% /2009 Government of France OAT 5.5% /2007 Government of France OAT 5.5% /2029 French Treasury Note BTAN 3.5% /2004 French Treasury Note BTAN 5% /2005

44,000.000 46,000,000 25,000,000 10,000,000 10,000,000 5,000,000

45,6 14,800 43.851.800 26,035,000 10,238,000 9,912,500 5,105,000

6.6G 6.41 3.81 1.50 1.45 0.75

Total for France

Netherlands Government of Netherlands 4X /2005 Government of Netherlands 5% /2011 Government of Netherlands 5.75% /2007

25.000.000 19,000,000 13,000,000

24,792,500 18.953.450 13,630,500

20.58

3.62 2.77 2.00


Germany Bundesrepublik Ser97 6.5% DO27

Total for Germany ~.

Austria




MSCI Euro Debt Index (expressed in Euro)

30,500.001 35,395251

8.39

5.17

5.17

Republic of Austria Ser98-2 4.3% /ZOO3 19,000,000 19,112,100 2.79 Republic of Austria SerEMTN 5.5% /2007 8,000,000 8,294,400 1.21

Total for Austria 4.00 ... . - . -_ . .

Italy 2 88 Republic of Italy sr unsuburd 5 75% /2016 19,000.000 19,726,446 0 74 Republic of Italy 4 75% /2005 5,000 000 5,066,000


Greece Republic of Greece SerlOYR 5.35%/2011 21,500,000 21,672,000 3.17


Ireland Irish Government (Treasury) 4.25% /2007 21,000,000 20,573,700 3.01

Total tor Ireland 3.01 . -. .. - .- -.

Belgium Kingdom of Belgium Ser31 5 5% /2028 12,500,000 12,560,000 1 84 -_ __ . . - ~.


Total tor Government Bonds 49.78

Corporate Bonds

United Kingdom John Hancock Global Fund secur SerEMTN 3 875% /2006 7,000.000 6,789,447 RES Capital Trust A bnk gtd 6.467% /2049 (1) 4.500.000 4,513,627 WPP Group unsecur unsubord SerMf”1 6% /2008 3,700,000 3,729,286 Lloyds TSB Bank subord 5.625%/2049 (1) 3,461,000 3,420.531 Bilrclays Bank subord nts SerEMTN 5 75%/2011 3,125,000 3,151,875 British Telecom step cpn 7 125%/2011 2,975,000 3,117,205

0.99

0.66

0.55 0.50 0.46 0.46

Euro Bond Fund


Investment

Nominal in Euro unless

specified Market

value

Corporate Bonds (continued)

United Kingdom (continued) NGG Firiance sr unsecur unsubord co gtd 5.25% /2006 3,050,000 Pruderitial subord SerEMTN 5.75%/2021 (1) 3,150,000 Credit Suisse/London subord 6.25% /2003 (OEM) 4,700,000 Lehman Bros Holdings co gtd SerEMTN 6.125% /2007 2,000,000 Travelers Insurance Company Institutional Fund secur sr unsubord SerEMTN 5.5% /2003 2,000,000 Vodafone Group unsecur nts SerEMTN 5.75% /2006 1,980,000 United Utilities Water unsecur sr iinsiibord co gtd SerCMTN 6.625% /2007 1,894.000 OTE unsecur unsubord co gtd SerRegS 6.125% /ZOO7 1,750,000 11 Group iinsecur unsubord 6 375% /2005 1,700,000 BAT International Finance unsecur co gtd SerEMTN 4.875Y4 /2009 1.650.000 HSBC Capital Funding bnk gtd Ser144A priv plmt 8.03%/2049 (1) 1,200.000 Halifax Group Euro Finance brik gtd 7 6272/2049 (1) 1,100,000 Rolls-Royce unsecur sr unsubord SerEMTN 6.375% /ZOO7 950.000 John Hancock Global Fund secur SerEMTN 5.3759; /2008 (DEM) 400,000 Crcdit Suisse urisecur subord 5.75% /2010 (DEM) 400,000


3,043.748 3,032,505 2,461,697

2,050.500

2,031,000

2,005,443

1,997,128

1,801,848 1,754,179

1,551,412

1.333385

1,199,567

974,795

206,222 203,473

X of net assets

_.

0.44 0.44 0.36

0.30

0.30

0.29

0.29

0.26 0.26

0.23

0.19

0.18

0.14

0.03 0.03

United States of America General Electric Capital iinsecur sr unsubord SerEMTN 5.125% /2007 International Lease Finance rits SerEMTN 4.125% /ZOO4 Ford Motor Credit unsubord 6 9 /2005 Household Finance unsecur sr unsubord 5.125% /2009 Procter & Gamble unsecur sr unsubord 5.75%/2005 tioldman Sachs Group unseciir sr unsubord 6.5% /2010 New York Life Funding secur sr nts SerEMTN 5.125% /2006 International Lease Finance nts SerEMTN 3.625Y0 /2002 Ford Motor Credit 5.25% /2008 Merrill Lynch R Co. unsecur unsubord SerEMTN 5.375% /2009 Household Firiance unsecur sr unsubord SerEM1N 6 5% /2009 CIT Group sr nts 5.5% 12005 Ford Motor Crcdit unsecur unsubord SerEMTN 5.625% /XI04 General Motors Acceptance nts SerEMTN

6,500,000

5.085.000 5,000,000

4,900,000

4,000,000

3,750,000

3,825,000

2,000.000 IDEM) 3,950,000

(DEM) 3,700,000

1,700,000 1,850,000

1,600,000

5.7590 /2006 1,500,000 Merrill Lynch 11 Co nts SerEMlN 5 25%/7008 1,205.000 Lehman Brothers Holdings sr nts SerEMTN 5.625% /2006 1,100,000 Citicorp subord SerEMTN 5 5% /201 0 (DEM) 2.000.000 Corning nts Ser144A priv plmt 6 25% /2010 1,400,000 Merrill Lynch & Co. nts SerEMTN 5.125% /ZOO2 321,667

7.36

6,503,376 0.95

5,030,524 0.74 5,009,358 0.73

4,482,030 0.66

4,141,986 0.61

3,579,754 0.57

3,858.277 0.56

2,000.000 0.29 1,892,115 0.28

1,850,161 0.27

1,672,962 0.24 1,666,243 0.24

1,606,000 0.23

1.489.013 0.22 1,184,838 0.17

1,114.850 0.16 1,003,368 0.15

869,116 0.13

323,436 0.05 . . - . . - __

Total for United States of America 7 25

Investment


specified Market 96 of net

value assets


Germany Eurohypo secur Pfandbriefe Ser777 3 75% /2005 25,000.000 AllEemeine Hypobank secur Pfandbrief Scr501 5% /2009 15,000,000 Bayerische Hypo und Vereinsbank subord SprEMTN 6 625% /2010 2,650 000

Total for Germany ~.

Netherlands Fixed-Link Finance secur SerG2-X 5.75%./2009 (1) 4,400,000 RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /ZOO7 4,300,000 Unilever unsecur unsubord co gtd SerEMTN 4.75% /2004 4,300,000 ABN Amro Bank subord SerEMTN 4.625% /2009 3,450,000 E.On International Finance co gtd SerEMTN 5.75% /2009 2,800,000 Honeywell Holding sr unsubord unsecur GO gtd 5.25% /ZOO6 2,800,000 Oeutsche Telekom International Finance unsecur unsubord co gtd 6.625% /2011 3,050,000 Allianz Finance II unsecur subord co gtd 6.125%/2022 (1) 2,500.000 Koninklilke Philips Electronics unsecur sr unsubord 5.75% /2008 1,850,000 SNS Bank Nederland unsecur unsubord SerEMTN 6 125%/2010 1,700,000 DaimlerChrysler International Firiance unsecur unsubord co gtd SerEMTN 6.125% /2006 1,650,000 Olivett International Finance co gtd SerEMTN 6.575% /ZOO9 1.550.000 SNS Reaal Groep unsecur sr unsubord SerEMTN 5% /2004 1,500,000 Deutsche Finance subord co gtd 7.5% /2003 (DEM) 2,644,000 Vodafone Finance unsecur unsubord co gtd 4.75% /2009 1,325,000 Generali Finance unsecur sr unsubord co gtd 4.75%/2014 1,250,000 DSL Finance unsecur unsubord bnk gtd 5.75%/2009 (OEM) 1,650,000 Generali Finance co gtd 5.0625%/2019 (1) 800,000 Gap International unsecur unsubord GO gtd 5% /ZOO4 775,000

3.57 24.430.000

14,785,725 2.16

2,740,954 0.40

4,494,767

4,352,763

4,344,075 3,287,332

2,845,603

2,777,880

2,749,117

2.499.628

1,871,702

1,775,467

1,632,002

1,515,011

1,514,925

1,373,186

1,228,617

1.1 57,000

875,114 767,818

71 1,773 ..


France Schneider Electric 3.75% /2004 Aventis unsecur sr unsubord SerEMTN 5% /2006 Thomson CSF sr nts SerEMTN 6.125% /2005 h a subord 6.75%/2020 (1) Vivendi Environnement sr nts SerEMTN 5 875%/2012 Vivendi Environnement nts SerEMTN 5.875% /2008 Dexia nts SerEMTN 3,62504 /2004 France Telecom unsecur SerRegS 6.75% /2008 Elf Aquitaine unsecur sr unsubord 4.5% /zoo9

Total for France . .. ..

4,500,000 4,075,000 3,625,000 2,800,000

2,765,000

2,590,000 2,000,000

1,575,000

1,600,000

4,449,825 4,110,249 3,752,200 2,563,440

2,680,865

2,577,403 1,979,300

1,775,351

1,541.680 - _-

. ..

6.13

0.65

0.64

0.64 0.48

0.42

0.41

0.40

0.37

0.27

0.26

0 25

0.22

0.22

0.20

0.18

0.17

0.13 0.11

0.10

6.12

0.64 0.60 0.55 0 42

0.39

0 38 0.29

0.26

0.23

3.76

Euro Bond Fund


Nominal in Nominal in Euro unless Market % of net Eum unless Market 96 of net

lnvesbnent specified value assets Investment specified value assets .~ -_

Mortgage and Asset Backed Securities (continued) Corporate Bonds (continued)

Spain Santander Central Hispano Issuances subord bnk gtd SerEMTN 6O4 /2011 3,865.000

Total tor Spaln

Luxembourg Syngenta Luxembourg Finance (#2) unwcur unsubord co gtd 5 59: /ZOO6

Total for Luxembourg

3,200,000 ~ .- .....

Sweden Assa Abloy nts SerEMTN 5 125% /2006

Total for Sweden

2,450,000 . .

3,778,499 . 0.55

0.55

3,236,160 0.47

0.47

2,442395 0.36

0.36 -

United States of America (continued) Citibank Credit Card issuance Trust 5.375% /2011 4,500,000 4,499,775 0.66 General Motors Acceptance Swift Trust 19991 Ser144A priw plmt 5% /2005 3.000.000 3,036,900 0.44

Total tor United States of America 4.21 . -

Netherlands European Mortgage Securities II secur mortgage backed SerAl 4.875% 12003 1,387,286 1,394,777 0 20


Total tor Mortgage and Asset Backed Securlties 4.41

Total Investment Securities 632.71 1,960 92.49

__ _ _

__

__ . .

._ .~

Total NAV 684,093,892 100.00

Belgium SCA Coordination Center unsecur unsubord co Rtd SerEMTN 5 375% /2007 850,000 855,949 0.13

Total tor Belglum 0.13

(1) Variable coupon rates are those quoted as of 30 June 2002

.

Singapore Singapore Telecommunications Ser144A priv plmt 6% /Z011 700,000 687,984 0 10


Japan Tokyo Electric Power secur unsubord Sar4 7.625% /ZOO2 (OEM) 500,000 258,776 0.04

Total for Japan 0.04 .. _. . .

. .

Total for Corporate Bonds 32.27

Government Guaranteed Bonds

United States of America Freddie Mac unsecur sr nts 4 5% /2004 25,000,000 25,193,309 3 68

Total for United States of America 3.68

Germany Treuhandanstalt g o d gtd 7 5% /2004 15,000,000 16,062,000 2 35

Total for Germany 2.35 . . . . __ . .- _.

Total for Government Guaranteed Bonds 6.03

Mortgage and Asset Backed Securities

United States of America Citibank Credit Card Master Trust 4.875% /E005 (OEM) 17,100,000 8,812,599 MBNA American Euro Structure 5 125% /2008 (OEM) 13,350,000 6,833,043 Chase Credit Card Master Trust Ser 1998.1 5.125%/2005 5,525,000 5,612,295

1.29

1 .oo 0.82

Euro Corporate Bond Fund

Investment aims To provide an attractive rate of return, measured in Euro, primarily through investment in Euro denominated fixed income securities of high quality issued by corporations and non government related issuers.


~ . .

(1.59)% 1.60%

-2 _. . .. . . ...




1 MSCl ECCl Index (expressed in Euro) . - . - _. - __ - __ .


Nominal in Euro unless Market X of net

Investment specified value assets . -

Euro Medium Term Notes General Electric Capital unsecur sr unsubord SerEMTN 5.125%/2007 Olivett Finance unsecur unsubord co gtd SerEMTN 7.25%/2012 John Hancock Global Fund setur SerEMTN 3.875% /2006 Imperial Tobacco Finance co gtd SerEMTN 6.25% /2007 ING Bank unsecur subord nts SerEMTN

Citicorp subord SerEMTN 5.5% /2010 RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 Lehman Bros Holdings co gtd SerEMTN 6.125%/2007 New York Life Funding secur sr nts SerEMTN 5.125% /2006 AIG SunAmerica Institutional Funding Ill secured unsubord SerEMTN 5.5% /2011 General Motors Acceptance International Finance sr unsecur unsubord co gtd SerEMTN 5.375% /2004 Household Finance unsecur unsubord SerEMTN 5% e 0 0 6 Unilever unsecur unsubord co Rid

5.a75%/2011

1.800.000

1,300,000

1,199,000

1,000,000

975,000 IDEM) 2,000,000

SerEMTN 4.75% /2004 Bayer unsecur sr unsubord SerEMTN 6% /2012 MBNA Europe Funding sr unsecur unsubord bk gtd SerEMTN 5.75%/2004 Continental sr nts SerEMTN 6.875% /2008 Metso unsecur unsubord SerEMTN 6.25% /2006 UPM.Kymmene unsecur sr nts SerEMTN 6.125% /2012 DaimierChrysler NA Holding unsecur sr unsubord co gtd SerEMTN 5.625% /ZOO7 Assa Abloy nts SerEMTN 5.125% /2006 Gallaher Group unsecur sr unsubord co gtd SerEMTN 4.875% /2005 Telecom ltalia nts SerEMTN 6.25% /2012 United Utilities Water unsecur sr unsubord co gtd SerEMTN 6.625%/2007 Stora Enso unsecur unsubord SerEMTN 6.375% /2007 International Lease Finance nts SerEMTN 4.125% /ZOO4 E.On International Finance co gtd SerEMTN 5.75% /2009 Koninkiik]e Ahold unsecur sr unsubord SerEMTN 5.875%/2008 TPSA Eurofinance unsecur sr unsubord co gtd SerEMTN 6.625% /ZOO6 Rentokil Initial unsecur sr unsubord SerEMTN 5.75%/2007 Dexia nts SerEMTN 3.625% /2004 Compass Group unsecur unsubord SerEMTN 6% /2009 Allied Domecq Financial Services t o gtd SerEMTN 5.875%/2009 Santander Central Hispano Issuances subord bnk gtd SerEMTN 6% /2011 Barclays Bank subord nts SerEMTN 5.75%/2011 WPP Group unsecur unsubord SerMTNl 6% /2008 Vivendi Environnement sr nts SerEMTN 5.875%/2012 Thomson CSF sr nts SerEMTN 6.125% /2005 Securitas unsecur sr unsubord SerEMTN 6.125%/2006

960,000

825,000

750,000

750,000

744,000

750,000

700,000 600,000

575,000 550,000 550,000

550,000

550,000 550,000

550,000 550,000

500.000

500,000

525,000

500,000

500,000

525,000

470,000 450.000

400,000

400,000

400,000 350,000 350,000

345,000 300,000

300.000

1,800,935

1,306,435

1,162,935

1,010,600

1,003,565 1,003,368

971,780

845,831

756,525

754,681

749,096

715,449

707,175 604,034

577,998 569,839 559,812

555,975

550.990 548,405

544,105 533,947

527,225

522,424

519,376

508,143

501,950

487,637

477,026 445,342

406,460

403,793

391,048 353,010 352,770

334,502 310,527

308,293

2.56

1 8 6

1.65

1.44

1.43 1.42

3a

2 0

07

07

06

02

1 .oo 0.86

0.82 0.81 0.79

0.79

0.78 0.78

0.77 0.76

0.75

0.74

0.74

0.72

0.71

0.69

0 68 0.63

0.58

0.57

0 56 0.50 0.50

0 47 0.44

0.44




Investment specified

Euro Medium Term Notes (continued) Sccuritas unsecur sr unsubord SerEMTN 6 125%,12008 300,000 SCA Coordination Center unsecur unsubord co gtd SerEMlN 5,37596 /ZOO7 300,000 Merrill Lynch & Co nts SerEMTN 5.25%/2008 275,000 Safeway unseciir uiisubord SerFMTN 6.5% /2010 250.000

. . . ..

SNS Bank Ncderland sr unsecur unsubord SerEMlN 6%/2007 Schneider ElectriL unsccur sr unsubord SerEMTN 6.125%,/2007 Bayerische Hypo und Vcreinsbank subord SerEMTN 6.625% /2010 Sogeriiri sr unsecur urisubord co gtd SerEMTN 79; 1201 1 Vivendi Eriviroririeincrit rits ScrEMTN 5.87511, /2008 Allied Domccq Financial Services co Rtd SerEMTN 5.54; /20Ob Aventis unsecur sr unsubord SerEMTN 5C8 /2006 BG Transco unsecur sr unsubord SerEMTN 5 25% /2006 Bank of Scotland uiisecur subord nts SerEMTN 5.5% /2009 lniiogy nts SerEMTN 4 b25% 17004 TotalFinaElf unsecur sr unsubord SerEMTN 5 75% 12005 BAT International Finance unsecur co Rtd SerEMTN 4.875% /LO09 ABN Amro Bank subord SerEMTN 4,62590 MBNA Europe Funding bnk gtd SerEMTN 6.5% /ZOO7 Fortis Finance sr co etd SerEMTN 4.6259; ,12009 Lehman Brothers Holdings sr nts SerEMTN 5.625h ,12006

Total for Euro Medium Term Notes

Eurobond Fixed Rate Government of France OAT 406 /ZOO9 Vodafone Finance iinsecur unsubord

Adecco Financial Service co Rtd 69; /2006 Michelin Finance Luxeinboiirg co gld 6.5%;/2012 Lloyds TSB Group i i nwur subord bilk gtd 5.875% /2014 Citibank Credit Card Master Trust

co gtd 4.75% ,/2009

750,000

250,000

250,000

250.000

755,000

250,000

250,000

250.000

250.000 250,000

738,000

250,000

22 5,000

200,000

200,000

75.000

1,450,000

1.200,000 700,000

600.000

600.000

4.875% /ZOO5 IDEM) 1,165,000 Honeywell Holding sr unsubord unsecur CO gtd 5,25% /ZOO6 600,000 International Paper nts 5.375% ,2006 hOO.OOO Syngenta Luxembourg Finance (#2) unsecur unsubord co gtd 5.5% /2006 575.000 GIE Suez Alliance unsecur sr unsubord 5 5% /'2009 550.000 EM1 Group unsecur unsubord co gtd 8.25% /2008 (GBP) 350,000 Rolls-Royce unsecur nts 4.57: /ZOO5 549,000 MBNA America Europe Ser6 4.375% /2004 500.000 Sclineider Electric 3 75% 0 0 0 4 450,000 Chase Credit Card Master Trust Ser1998-I 5.125'4 /?a05 434,570 Credit SuisscLondon subord 6.25% ,'ZOO3 (DEM) 825,000 Hammerson unseriir sr iinsiibord 6.25% / Z O O 8 400,000 Cegetel unsecur unsubord 4 75% /2004 408,000

307,024

302,100 270,399 262,490

261,215

260.287

2 ~ . m

256.988

253,760

253,121

252,162

251.075

250,300 250.1 13

246.726

235.062

214.391

203.412

194,260

76,012

1,382,285

1,112,710 707.504

6 10 , 0 18

607,890

600,390

595,260 593.093

581,498

545,353

542,478 532,146 500,500 444,983

441,385 432,106

408,135 397,988

0.44

0.43 0.38 0.37

0.37

0.37

0.37

0.36

0.36

0.36

0.36

0.36

0 36 0.36

0.35

0.33

0.30

0.29

0.28

0.11

41.95

1.96

1.58 1 .00

0.87

0.86

0.85

0.85 0 84

0 83

0 77

0.77 0.76 0.71 0.63

0.63 0.61

0.58 0.5/


Nominal in Euro unless Market % of net

Investment specified value assets ._ _ -

Eurobond Fixed Rate (continued) FKI unsecur unsubord co gtd 6.625%/2010 390,000 Gerierali Finance unsecur sr unsubord co gtd 4.75%/2014 400,000 Repsol International Firiance unsecur co gtd 3.75% /2004 400,000 AT&T unsecur sr urisubord SerRegS 6% PO06 400.000 Enterprise Oil unsecur 7.25% /2009 TI Group unsecur unsubord 6.375% /2005 OTE unsecur unsubord co gtd SerRegS 6.125%/2007 Pearson 6.125% /2007 Ueutsche Finance sr unsecur unsubord bnk gtd 4.25% /2009 DainilerChrysler International Finance

Halifax subord 4.75% /?009 GKN unsecur unsubord 6.75% /2019 VNU unsccur sr unsubord 6.625% 1'2007 MBNA American Euro Structure

Koninklijke Philips Electronics unsecur sr unsubord 5.75?6 /2008 NGG Finance sr unsccur unsubord cn gtd 5.25% /2006 Corning nts Ser144A priv plrnt 6 75% /7010 Household Finance unsecur unsubord

co Rtd 3.5%/2004

5.125% /ZOO8

5.2596 12005 Public Power unsecur nts 4 5% /2009 AT&T sr urisubord urisecur Ser144A priv plmt 6% 12006 Abbey National subord 4.6252 /LO1 1 Gap lntpriiational iinsecur iinsubord co Etd 5% /2004

(GBP) 200,000 300,000

300,000 300.000

325,000

300,000 300,000

(GBP) 175,000 250,000

(DFM) 500.000

250.000

250.000 400,000

250,000 250,000

275,000 250,000

250.000 Schlumberger lndiistries co gtd 5 25% /2008 Citibank Credit Card Issuance Trust 5 375% /2011 200,000 Singapore Telccomniunicatioris Ser144A priv plmt 6% /2011 160,000 Corning Ser144A priv plnit 5 625:b /2005 225,000 VNU nts 6 75% /2008 50,000

200,000

383.783 0.54

370.240 0.53

368.726 0.52 338.020 0.48 337,641 0.48 309.561 0.44

308,888 0.44 307,590 0.44

306,670 0.44

295,125 0.42 289,215 0.41 271,037 0.38 256,899 0.36

255.919 0.36

252,933 0.36

249,488 0.35 248,319 0.35

244,517 0.35 235.448 0.33

233,468 0.33 232,655 0.33

229,604 0.33 200.287 0.29

199,990 0 28

157,254 0.23 155.780 0 12 51,435 0 08

Total for Eurobond Fixed Rate

Euromarket Step Up France Telecom unsecur SerRegS 6.75% /2008 Allianr Finance II unsecur subord co gtd 6.125%/2022 (1) RBS Capital Trust A bnk gtd 6.467%/2012 (1) Fixed-Link Finance secur SerG2-X 5.75% /2009 (1) National Westminster Bank unsecur subord SerEMTN 6.625% /2049 (1) AXA subord 6.75%,/2020 (1) Lloyds TSB Bank subord 5.6252/2049 (1) Prudential subnrd SerEMTN 5 75%/2021 (1) British Telecommunications step cpn 6.125%/2006 Deutsche Telekorn International Finance unsecur unsubord co gtd 6.625%/2011 British Telecom step cpn 7.125% to 15/02/2011

,450.000

,000,000 850,000 775,000

750,000 600.000 600,000 540,000

500,000

350,000

300,000 . . . .-. . .- .. .. .. ..

Total for Euromarket Step Up

Fixed Rate Global Ford Motor Credit nts 6.5% /2007 (USD) 950,000 Clear Channel Conirriunications unsecur sr unsubord 6 5% /2005 900,000 General Motors Acceptance nts 6.875% /2011 (USD) 725,000

1,372,938

999,851 852,574 791,692

782,235 613,594 592.984 519,858

511,850

315,472

314,340

065,555

887,987

729.382

25.74

1.95

1.42 1.21 1.12

1.11 0.87 0.84 0.74

0.73

0.45

0.45

10.89

1.37

126

1.04

' .^I*

. . . . I... , , , ' ,.. . . . . . . . . - -. . . .. .



Investment


specified

Fixed Rate Global (continued) Proctcr & Gamble urise'cur sr unsubord 5.754; /7005 700,000 Goldman Sachs Group unsecur sr unsubord 6.5% /2010 675,000 DaiinlerChrysler NA Hnldiiig cn gtd 7.3%/2012 (USD) 500,000 Williams Cos unsecur debentures SerA 7.59, /2031 (USD) 550.000 Tyco International Group unsecur unsubord co gtd 6.125% /ZOO7 500.000 CIT tiruup sr inis 5 5"h /?005 300.000 Deutsche Telekom International Finance unsecur co gtd 8.12504/2012 200,000

Total for Fixed Rate Global

US Corporate Bonds Starwood Hotels R Resorts Worldwide nts Ser144A priv plmt 7.875%/2012 (USD) 555,000 Farmcrs Exchange Capital nts Ser144A priv plrrit 7.05W /2028 (USE 575.000 Williams Cos nts sr unsecur 7.75%/2031 (LED) 250,000 Qwest Capital Funding unsecur co gtd 7.9% /2010 (USD) 75U.000

.. . .-

Market value

724.847

698,356

531,337

399,957

365,401 270,202

197.031

550.753

431,870 185,548

143,030

% of net assets

1 0 3

0 99

0 75

0 57

0 52 0 38

0 28

8.19

0.78

0.61 0.26

0.21 . .

Total for US Corporate Bonds 1.86


Total NAV 70,423,929 100.00 .

(1) Variable coupoii ratps afp those qiioted a$ of 30 June 2002

Euro Strategic Bond Fund

Investment aims To provide an attractive rate of return, measured in Euro, through market, instrument and currency selection. The Fund consists of fixed income securities of varying maturities, denominated primarily in the Euro and other European currencies which are probable candidates for joining the Economic and Monetary Union at a later date.


....................................

0.66% 0.47% (0.04)% 2.30% 2.5 ................... . . . . . . . . . . . . . ...

2.0

1.5

1.0

0.5

0

._ .......... . . . .

. . ........ ._ . - ....... ... .-

_ .................. .... I

... . . . . . 111 B - -0 5

la 4 i



State men t of investments Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Investment

Nominal in Euro unless Market 96 ot net


Government Bonds

France Government of France OAT 4% /2009 18.000,OOO 17,159,400 7.11 Government of France OAT 5.5% /2010 13,000,000 13,477,100 5 58 Government of France OAT 5.25% /ZOO8 9,000,000 9,254,700 3.83 French Treasury Note BTAN 4 5% /2006 8,000,000 8.016.000 3.32 French Treasury Note BTAN 5% /2005 6,000,000 6,126,000 2.54 Government of France OAT 5.5% /ZOO7 3,400,000 3,540,760 1.48

Total for France 23.86 .. . . ._ ..... _ ......... - . .-

Germany Bundesrepublik Ser97 6 5%/2027 12,500.000 14,506,250 6 01

Total for Germany 6.01 - - _ . . - . . _.__ . .

Italy Republic of Italy sr unsubord 5.75%/2016 12,000,000 12,458,808 5.16


Netherlands Government of Netherlands 4% /2005 6.500.000 6,446,050 2.67 Government of Netherlands 5% /2011 2,000,000 1,995,100 0.84


Greece Republic of Greece SerlOYR 5.35% /2011 8 000,000 8,064,000 3 34

Total for Greece 3.34 . . . - ~


MSCl Euro Debt Index (expressed in Euro)

Austria Republic of Austria SerEMTN 5.5% /2007 7,500,000 7,776,000 3.22

Total for Austria 3.22 ~

Belgium Kingdom of Belgium Ser31 5.5%/2028 7,000,000 7,033,600 2.91


Ireland Irish Gavernment (Treasury) 4.25% /2007 6,000,000 5,878,200 2.44

Total for Ireland 2.44

Brazil Republic of Brazil Brady C

(USDI 1,416,122 900.048 0.37

Total for Brazil 0.37 . -. ......... _. . ..... ~- . . . . . . . . . -. . . . . .

Ser20YR 8%/2014

Bulgaria Bulgaria Brady debentures SerPDl FRN 2.8125%/2011 (1) (US01 784,000 708,326 0.29

Total for Bulgaria 0.29

Colombia Republic of Colombia 11 75% /2020 (US0 350,000 348.362 0 14

Total for Colombia 0.14 ~~ ...

Total for Government Bonds 51.25



Nominal in Eum unless

Investment specified . _.

Corporate Bonds

United Kingdom WPP Group unsecur unsubord SerMTNl 6% /2008 1,925,000 John Hancock Global Fund secur SerEMTN 3.875% /2006 1,850,000 Hammerson unsecur sr unsubord 6.25% /2008 1,450,000 NGG Finance sr uiisecur unsubord co gtd 5.25% /2006 1,450,000 GKN unsecur unsubord 6.75% /2019 (GBP) 900,000 Imperial Tobacco Finance co gtd SerEMTN 6.25% /2007 Safeway unsecur unsubord SerEMTN 6.54: /2010 Lloyds TSB Bank subord 5.625% /2049 (1) tlSBC Capital Funding bnk gtd Ser144A priv plmt 8.03% /2049 (1) Halifax Group Euro Finance bnk gtd 7.627%/2049 (1) National Westminster Bank unsecur subord SerEMTN 6.625% /2049 (1) OTC unsecur unsubord co gtd SerRegS 6.125% /2007 Rolls.Royce unsecur sr unsubord SerEMTN 6.375%/2007 Compass Group unsecur unsubord SerEMTN 6% /2009 Prudential subord SerEMTN 5.75% /2021 (1) Lehman Bros Holdings co gtd SerEMTN 6.125%/2007 United Utilities Water unsecur sr unsubord co gtd SerEMTN 6.625% /1007 British SKY Broadcasting unsecur unsubord

1,300,000

1,200,000 1,250.000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000 1,075,000

950,000

825,000

co gtd 7.75% /ZOO9 (GBP) 585.000 LMI Group unseciur iunsubord co gtd 8.25%/2008 (GBP) 550,000 Enterprise Oil unsecur 7.25% /2009 (GBP) 500,000 TI Group unsecur unsubord 6.375% /2005 800,000 Colt Telecom Group sr nts SerDBC 7.625% /ZOO8 (DEM) 3,000.000 MBNA Europe Funding sr unsecur unsubord bk gtd SerEMTN 5.75% /2004 685,000 Rcntokil Initial unsecur sr unsubord SerEMTN 5.75%/2007 600,000 Telewest Communications sr disc nts step cpn 0% to 15/04/2004 / 9 875% to 15/04/2009 (GBP) 1,100,000 BAT International Finance unsecur co gtd SerEMTN 4.875% /ZOO9 575,000 Sniiths Industries unsecur sr unsubord 7.25%/2016 (GBP) 325,000 MBNA Europe Funding bnk gtd SerEMTN 6.5% /2007 450,000 Pearson 6.125% /2007 425,000 Vodafone Group unsccur nts SerEMTN 5.759:/2006 400,000 FKI unsecur unsubord co gtd 6.625% /2010 250,000

Market X of net value assets

1,940,236

1,794,354 1,479,490

1,447,028 1,393,902

1,313,780

1,259,954 1235,384

1,222,728

1,199,567

1,147278

1,132,590

1,128.710

1,117,765 1,034,903

973.988

869,921

860,000

852,466 844,104 825.496

706,942

688,572

608,970

561,611

540,644

538.267

457,678 435,752

405,140 246.014

0.80

0.74 0.61

0.60 0.58

0.54

0.52 0.51

0.51

0.50

0.48

0.47

0.47

0.46 0.43

0.40

0.36

0.36

0.35 0.35 0.34

0.29

0.29

0.25

0.23

0.22

0 22

0 19 0.18

0.18 0.11


United States of America International Lease Finance nts SerEMTN 4.125%/2004 2,280,000 2,255,574 0.93 General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 1,950,000 1,951,013 0.81 Household Finance unsecur sr unsubord 5 125% /2009 1,950,000 1,783,665 0 74

Investment

Nominal In Euro unless Market % of net



United States of America (continued) Goldman Sachs Group unsecur sr unsubord 6.5%/2010 1,700,000 International Paper nts 5.375% /2006 1,357.000 Farmers Exchange Capital nts Ser144A priv plmt 7.05% /2028 (USD) 1,575,000 CIT Group sr nts 5.5% /2005 1,130,000 Federated Department Stores unsecur debentures 7% /2028 (USD) 1,015,000 Dana nts SerEUR 9% /2011 1,015,000 HCA unsecur nts 7.125% /2006 (USD) 895,000 Clear Channel Communications unsecur sr unsubord 6.5% /ZOO5 932,000 Ford Motor Credit 5.25% /2008 (OEM) 1,900,000 Merrill Lynch & Co. unsecur unsubord

Peniex Master Trust Ser144A priv plmt 8.625% /2022 (USD) 800,000 Aetna 'New' sr nts unsecur 7.875X /2011 IUSD) 725,000 Corning nts Ser144A priv plmt 6 25%/2010 1,195,000

SerEMTN 5.375% /ZOO9 IDEM) i,aio.ooo

Ford Motor Credit unsecur sr nts 4.875% /ZOO4 CSC Holdings unsecur sr nts SerB 8.125%/2009 Williams Cos unsecur debentures SerA 7.5%/2031 Charter Communications Holdings sr disc nts step cpn 0% to 15/05/2006 / 11.75%to 15/05/2011 General Motors Acceptance nts 6.875% /2011 General Motors Acceptance 8% /2031 Aetna unsecur sr nts 7.375% /ZOO6 Ford Motor Credit 7.375% /2011 AT&T sr unsubord unsecur Ser144A priv plmt 6% /2006 AT&T Wireless Services unsecur sr nts 7.875% /2011 Starwood Hotels & Resorts Worldwide nts Ser144A priv plmt 7.875% /2012 NTL unsecur sr unsubord SerB step cpn 0% to 1/04/2003 / 10.75% to 1/04/2008 Huntsman International unsecur sr subord SerEUR 10.125%/2009 Harrah's Operating Company sr unsecur co gtd 8% /2011 Tyco International Group unsecur unsubord co gtd 6 125% /2007 Lehman Brothers Holdings sr nts SerEMTN 5.625% /2006 Qwest Capital Funding unsecur co etd 7.9% /2010 DaimlerChrysler NA Holding unsecur sr unsubord co gtd SerEMTN 5.625%/2007 Williams Cos nts sr unsecur 7.75% /2031 Global Crossing Holding sr unsecur co gtd 9.625% /ZOO8


150,000 (USD) 80,000

(USD) 850,000 . .. . . . - .

650,000

(USD) 725,000

(USD) 825,000

(US01 1,650,000

(USD) 575,000 (USD) 550,000 (USD) 525,000 (USD) 500,000

600,000

(USD) 600,000

(USD) 460,000

(GBP) 1,000,000

500,000

(USD) 315,000

325,000

175,000

(USD) 270,000

1,758.822 1,341,378

1.182.948 1,017,759

1,007,316 997,738 950,559

919,560 910,131

905.079

791,853 773.279 741,852

644.280

606,758

599,936

584,776

578,475 569,600 557,304 510,596

509,385

496,818

456,480

448,141

415,966

345,018

237,511

177.362

154,472

150,270 59,375

8,607

0.73 0.56

0.49 0.42

0.42 0.41 0.39

0.38 0.38

0.38

0.33 0.32 0.31

0.27

0.25

0.25

0.24

0.24 0.24 0.23 0.21

0.21

0.21

0.19

0.19

0.17

0.14

0.10

0.07

0.06

0.06 0.02

0.00

11.35

. ..

Euro Strategic Bond Fund Statement of investments (con tin ued 1 Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Nominal in Nominal in Euro unless Market % of net Eum unless Market 96 of net

Investment specified value assets Investment specified value assets . . . . . . . . . . . .- . . . . . . . . ........ .... ........... .- . . . . . . . . .

Corporate Bonds (continued) Corporate Bonds (continued)

Netherlands Fixed-Link Finance seciir SerGZ-X 5.758/2009 (1) RWE Finance iinsecur sr unsubord co gtd SerEMTN 5.504 /ZOO7 Olivett Finance iinseciir unsiibord co gtd SerEMTN 7.25%/2012 General1 Finance unseciir sr iinsubord co gtd 4 75!4 /2014 SNS Bank Nederlaiid iinsecur uiisubord SerEMTN 6.12596/2010 VNU unsecur sr nnsubord 6.6257; ROO7 Koninklikje Ahold unsecur sr unsubord SertMTN 5.815% /2008 ABN Amro Bank subord SerEMTN 4 625% /2009 Honeywell Holding sr unsubord unsecur co gtd 5 25’4 12006 Deutsche Telekorri International Finaricc unsecur unsubord co gtd 8 25O4 /2030 Deutsche Telekorri lnterriational Finance iinsecur unsubord co gtd 6 625% /2011 DaimlerChryslcr International Finance unsecur unsubord co gtd SerEMTN 6.125% /2006 Koninklijke Philips Electronics unsecur sr unsubord 5.759; /2008 TPSA FuroFinance co gtd SerFMTN 6.125% /2004 Kappa Eeheer sr suburd co gtd Ser144A priv plrrit 10,625% /ZOO9 DSL Finance unsecur unsubord bnk gtd 5. /Y% /2009 Vodafone Finance unsecur unsubord co gtd 4.7590 /2009 E.On International Finance co gtd SerEMTN 5 75% /2009 Gap International unsccur unsubord co gtd 5% /2004 VersaTel Telecom International unsecur sr nts 11 25% /2D10

1.700.000

1,300,000

1.300.000

1,350,000

I , 100.000 1.100.000

1.100.000

1.1 00,000

950.000

(USD) 1,000.000

1,000.000

870,000

875,000

900,000

750,000

IDEM1 1,500,000

750,000

600,000

650.000

800,000

1,736,615

1,315,952

1,306,435

1,249,560

1,148,832 1.130.355

1.104.290

1,048.1 35

942,495

941,683

901,350

892,146

885,264

818,984

810.734

195,558

695,444

609.7 72

596,971

192,222

0 71

0 55

0 54

0 52

0 48 0 47

0 46

0 43

0 39

0 39

0 37

0.37

0.37

0.34

0.34

0 33

0 29

0 25

0 25

0 08

Sweden Se~uritas unsecur sr unsubord SerEMTN 6.125%/2008 1,725,000 1,765,386 0.73 Assa Abloy nts SerEMTN 5.125%/2006 875.000 872,462 0.36

Total tor Sweden 1.09

Luxembourg Syngenta Luxembourg Finance W21 unseciir unsubord co gtd 5.5% /2006 1,500,000 1,516.950 0.63 Sogerim uiisecui co gtd SerEMTN 6.125% /2006 925.000 936,609 0.39

Total for Luxembourg 1.02

Finland UPM- Kymmene iinsecur nts SerEMTN 6.35% /ZOO9 900,000 930,290 0.39 Metso unsecur unsubord SerEMTN 6.25% /2006 900,000 916.056 0.38

Total for Finland 0.77 ...... ~ . . .

Greece Public Power unsecur nts 4 5% /2009 1,600,000 1.506.869 0.62


Spain Santander Central Hispano Issuances subord bnk gtd SerEMTN 6% /2011 1,500,000 1.466.429 0.61

Total for Spain 0.61 ...

Switzerland Adecco Financial Service co gtd 6% /2006 1,100,000 1.1 11,793 0.46

Total for Swloerland 0.46

Canada Calpiiie Canada Energy Finance Serl 8.375% /2008 765.000 504,900 0.21


France Aventis unsecur sr unsubord SerEMTN 5% /ZOO6 Cegetel unsecur unsubord 4.75% /2004 Thomson CSF sr nts SerEMTN 6.12596 /2005 Vivendi Environnernent nts SerEMTN 5.875%/2008 Axa subord 6.75% /2020 (1) Schneider Electric 3.75% /2004 Vivendi Environnenient sr nts SerEMTN 5.875%/2012 France Tclecom unsccur SerRcgS 6.75% /2008

Total for France -. . - . .... - ._ ......

1.725.000 1,500,000 1,325,000

1,220,000 1,000,000 1,000,000

850,000 650.000

1,739,921 1,463,190 1,371,494

1.2 14,066 1,022,657

988,850

824,136 615.455

Germany Depfa Pfandbriefbank secur Ser478 5% /ZOO6 1,500,000 Bayerische Hypo- und Vereinsbank subord ScrEMTN 6.625% /2010 1,100,000 Continental sr nts SerEMTN 6 875% /2008 900,000 Messer Griesheiin Holding sr fits 10.375% /2011 425.000

Total for Germany - ...................... .

1.518,OOO

1,137,754 932,464 456,875

7.93

0.72 0.61 0.57

0.50 0.42 0.41

0.34 0.26

3.83

0.63

0.47 0.39 0.19

1.68

Total for Canada . . . _ _

0.21



United States of America Freddie Mac unsecur sr nts 4.5% /2004 3,000.000 3,023,197 1.25


Germany Treuhandanstalt govt gtd 7.5% /ZOO4 2,000,000 2,141,600 0.89

-. ..



...



Nominal in Euro unless Market 46 of net

Investment specified value assets . . . .~ . .


United States of America MRNA American Furo Striicture 5 125%/2008 (DEM) 5,200,000 2,661,560 1.10

Total for United State8 of America 1.10 - -.

Netherlands European Mortgage Securities II secur nlortgage backed SerAl 4.875% /2003 1,707,429 1,716,649 0.71


Total for Mortgage and Asset Backed Securities 1.81 -


Total NAV 241,333,800 100.00

(1) Variable coupon rates are those quoted as of 30 June 2002.

--

European High Yield Bond Fund

Investment aims Statement of investments To provide an attractive rate of return, measured in Euro, through investments in lower rated and unrated fixed income securities issued by governments, agencies and corporations that offer a yield above that generally available on debt securities in the four highest rating categories of S&P or Moody's. These investments will include European fixed income securities and non-European fixed income securities. These investments may include emerging markets fixed income securities.

Change 111 net asset value per share For the six months ended 30 June 2002

._ . . -

(17.34)% (17 631% (17.991% (12.21)%

-2

-4

-6

-a

-10

-1 2

-14

.16

-18

Fund (net of expenses1 Class I shares



Merrill Lynch European Issuers High Yield Index (expressed in Euro) ..


Investment

H o I d i n g/ Nominal in

Euro unless Market 56 of net specified value assets

Integrated Telecommunication Services NTL. unsecur sr unsubord SerB step cpn 0% to 01/04/2003 / 10.75% to 01/04/2008 IGBP) 6,760,000 3,029,432 4.87 PTC International Finance II sr subord co gtd SerEUR 11.25%/2009 1,940,000 2,051,855 3.30 VersaTel Telecom International unsecur sr nts 11.25x /2010 5,200,000 1,249,446 2.01 Netia Holdinns I1 co etd SerB 13.125%/i009 I (USD) 5,000,000 Slovak Wireless Finance Company co gtd 11.25% /ZOO7 725,000 Netia Holdings II co gtd SerE 13.5% /2009 Colt Telecom Group sr nts SerDBC 7.625%/2008 IDEM) 2,300,000 Jazztel unsecur sr nts 13 25%/2009 3,700,000 RCN unsecur sr disc nts SerB step cpn 0% to 15/02/2003 / 9.8% to 15/02/2008 IUS01 2.225.000 Song Networks sr nts 11.875% /2009 Primus Telecommunications Group unsecur sr nts 11.25% /2009 Maxcom Telecomunicaciones sr uns co gtd step cpn 0% to 01/03/2006 / 10% to 01/03/2007 IUSDI 1,145,448 WorldCom unsecur sr nts 6.75% /2008 2,740,000 RSL Communications step cpn 0% to 15/03/2003 / 109: to 15/03/2008 (DEM) 15,600,000 Jazztel unsecur sr nts 14% /2010 1,500,000 Dolphin Telecom unsecur sr disc nts step cpn 0% to 01/06/2003 / 11.625% to 01/06/2008 13,950,000 RSL Communications unsccur sr nts SerEUR 12.875% /2010 3,000,000 RSL Communications sr unsecur co gtd 9 875% /2009 IUSDI 5,075,000 CTI Holdings sr nts step cpn 0% to 15/04/2003/ 11.5% to 15/04/2008 RSL Communications co gtd step cpn 0% to 01/03/2003/ 10.125% to 01/03/2008 IUSDI 6,000,000 Focal Communications unsecur sr disc nts SerB step cpn 0% to 15/02/2003 / 12.125% to 15/02/2008 (USDI 780,000 Viatel sr disc nts step cpn 0% to 15/04/2003/ 12.5% to 15/04/2008 (USD) 10,435,000 Global Crossing Holding sr unsecur co gtd 9.125% /2006 (USD) 3,550,000 Focal Communications 14,957 XO Communications unsecur sr disc nts step cpn 0% to 01/06/2004 / 12.25% to 01/06/2009 (USD) 2,270,000 XO Communications unsecur sr nts 10.75% /2009 IUSD) 1,350,000 RSL Communications sr co ntd 12.25%/2006 IUSDI 1,550,000 McLeodUSA Pfd Stock SerA 2.5% /2012 6,309 RSL Communications unsecur co gtd 9.125%/2008 IUSDI 885,000 GT Group Telecom unsecur sr disc nts step cpn 0% to 1/02/2005 / 13.25% to 1/02/2010 IUSD) 5,000.000 Song Networks Holding ADR 47,451 KPNQwest CV sr unsecur 10% /2012 364.000 McLeodUSA Wts exp. 16/04/2007 13,981 GT Group Telecom Ser144A Wts exp. 1/02/2010 5,000 Maxcom Telecom Ser144A Wts exp 1/04/2007 1,800 Jazztel Wts exp. 15/07/2010 1,500

Total for Integrated Telecommunication Services

3,945,000

3,500,000

IUSD) 750,000

(USDI 2.340.000

. . . . _- . .

810,080

786,258 671,108

541,989 518,292

428,077 420.231

410,103

347,964 301,666

199,507 150,055

145,094

142,536

102,779

94.779

91.134

55,288

52,832

35,947 35.289

34,479

34,175

31,391 23,957

17.923

12,657 8,649 4,085 1,416 1,115

182 15

1.30

1.26 1.08

0.87 0.83

0.69 0.68

0.66

0.56 0.48

0.32 0.24

0.23

0.23

0.17

0.15

0 15

0.09

0.08

0.06 0.06

0.06

0.05

0.05 0.04

0.03

0.02 0.02 0.01 0.00 0.00 0.00 0.00

20.65

. ..



H o I d I n g/ Nominal in

Euro unless specltled

Nominal In Euro unless

specified Market % of net

value assets Investment ............ . . . . . . . . . . . . . . . . . . . . . . .

Paper Packaging Kappa Beheer sr subord co gtd SerEUR step cpn 0% to 15/07/2004 / 12.5%

2,871,872 4.62 to 15/07/2009 1,752,295 2.82 Clondalkin Industries sr nts 10.625% /2010

Total for Paper Packaging

1,532,948 2.46

Market value

% of net assets Investment

Broadcasting & Cable TV Telewest Comrnunications sr disc nts step cpn 0% to 15/04/2004 / 9.875% to 15/04/2009 (GBP) 5,625,000 Onu Finance sr nts 14% /2011 5,000,000 United Pan-Europe Commuriications unsecur sr disc nts SerB step cpn 0% to 01/11/2004 / 13.3755 to 01/11/2009 (USO) 16,900,000 British Shy Broadcasting unsecur unsubord co gtd 7.75% 12009 (GEP) 1,000,000 Uriited Pan-Europe Communications sr nts SerEUR 10.875%/2009 7,300,000 TV Azteca sr nts SerB 10.5% /2007 (USD) 375,000 Callahan Nordrhcin-Westfalen unsecur sr nts SerEUR 14% /2010 7,100,000 British Sky Broadcasting sr unsecur co gtd 8.2% /'ZOO9 (USD) 200.000 Globalstar LP/Capital sr nts 11.375% /2004 (USD) 3,200,000 XM Satellite Radio sr secur 14%/2010 (USD) 395,000 Pegasus Communications sr nts SerB 9.7536 /ZOO6 (USD) 140,000 Pegasus Communications sr nts unsecur ScrB' 12.5%/2007 (USO) 60,000 Globalstar LP sr nts 11.5% /2005 (USD) 190,000 Globalstar Telecom Ser144A Wts exp. 15/02/2004 1,630

Total for Broadcasting &Cable Ty

. .-

1,500,000 480,000

1,307,854 518,972

.....

2.10 0.84

2.94

1,470,086

909,764 368,333

301,800

199,080 194,419 187,989

63,794

30,378 11.544

16

2.36

1.46 0.59

0.49

0.32 0.31 0.30

0.10

0 05 0 03

0.00

Government Bonds US Treasury Bill 0% 18/07/2002 (USD) 1,500,000 1,506,806 2.42


Diversified Financial Services Yell Finance sr nts Ser(GBP) 10.75%/2011 (GBP) 870.000 1.481.454 2.38

Total for Diversified Financial Services 2.38 ... - .............. _. . . . . . . .

Movies & Entertainment EM1 Group unsecur unsubord co gtd 8.25% /2008 IGBP) 550,000 854.620 1.37 Alliance Atlantis Communications unsecur sr subord nts 13%/2009 (USD) 305,000 339,727 0.55 AOL Time Warner nts 6.875% /2012 (USD) 290,000 270,822 0.44

Total for Movies & Entertainment 2.36 .......

15.91 Electronic Equipment & Instruments Flextronics International sr subord nts 9 75%/2010 1,350,000 1,394,341 2 24

2.67 Total for Electronic Equipment & Instruments 2.24 2.38 l6

1,11

44

_ . - . _ __ -_

Health Care Distributors & Services Fresenius Medical Care Capital Trust 111

Fresenius Medical Care Capital Trust co gtd 7 375% /2008 (OEM) 1,600,000 746,104 1 2 0

- - co gtd 7 875%/2008 (USD) 625,000 569,587 0 92

7.76 Total tor Health Care Dlstrlbumrs & Services 2.12

Diversified Chemicals Huntsman International unsecur sr subord SerEUR 10.125°4/2009 2.000,000 1 Dynea International co gtd 12.25% /2010 2,685,000 1 lneos Group Holdings sr nts 10.5% /2010 675,000 Lucite lnternatiorial sr unsecur co gtd 10.25% /2010 700.000 Equistar Chcmicals / Equistar Funding sr unsecur co gtd 10.125% /2008 (USD) 280,000

Total for Olversltled Chemicals . . . . . .

,663,866 ,473,612 722,689

687,815

270,769

Specialty Chemicals Messer Griesheim Holding sr nts 10.375% /2011 Kronos International secured Ser144A priv plmt 8.875% /2009 ISP Holdings s e w Ser144A priv plmt 10.625% /2009

Electric Utilities Calpine Canada Energy Finance Serl 8 375% /2008 1,350,000 PSEG Energy Holdings nts Ser144A priv plmt

(USD) 335,000 8.625% /2008

Total for Electric Utllltles

1,345,000

1,030,000

(USD) 325,000

1.443.375

1,030,000

325,804

2.32

1.66

0.52

891,000 1.43

325,576 0.53

1.96 _ Total for Specially Chemicals 4.50

Oil & Gas ExDloration & Production Vintage Petroleum unsecur sr subord nts 7.875% /2011 (USD) 575,000 526,932 0.85

1.89 Chesapeake Energy sr unsecur co gtd i::: 8.125%/2011 (USD) 375,000 373,080 0.60 o.31 Husky Oil FRB 8.9%/2008 (1) (USO) 275,000 297,792 0.48

Auto Parts & Equipment Dana rits SerEUR 9% /2011 1,200,000 1,179,592 Lear utisecur sr nts 8.125%) /2008 670,000 664.798 Dura Operating sr subord nts SerB 9% /2009 585,000 580,603 ArviriMeritor unsecur sr nts 8.75% /2012 (USD) 175,000 189,939 ~

1.93 4,20

Total for Oil & Gas Exploratlon & Production ._ .

Total for Auto Parts & Equipment

Internet Software & Services Exodus Communications unsecur sr nts

2,48 Industrial Machinery

Manitowoc unseciir sr subord 10.375% /2011 1,430,000 1,543,588 11.625% /2010 (USD) 2,045,000 1.61 Psinet unsecur sr nts 10.5%/2006 4,400.000 Flowserve Finance unsecur co gtd SerEUR

12.2504 /2010 877.000 1,001,086 Rhythms Netconnections unsecur sr disc nts SerE step cpn 0% to 15/05/2003 / 13.5% to 15/05/2008 (USD) 4,905,000

Total for Industrial Machinery 4.09

341,677 0.54 308,123 0.50

198,672 0 32

European High Yield Bond Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Nominal in Euro unless Market 96 of net

lnvesbnent specified value assets

Internet Software & Services (continued) Rhythms Netconnections unsecur sr nts SerB 14%/’2010 (USD) 2,975,000 165,687 0.27 Psinet unsecur sr nts SerEUR 11% /2009 2,250,000 157,556 0.25

Total for Internet Software B Services 1.88

...

..... ~- .

Telecommunications Equipment Complete1 Europe unsecur sr unsuhord SerB 14%/2010 3.000.000 570,426 0 92 Corning Ser144A priv plmt 5 6752 /7005 745.000 515,804 0 83 Metromedia Fiber Network unsecur sr nts 10% /2009 (USD) 2,060,000 20.860 0 03


Food Retail BSN Financing sr unsubord cu gtd SerEUR 10.25% /2009 1,070,000 1,002.880 1.61

Total for Food Retail 1.61 .

Airlines Air Canada sr nts SerEUR 10.25% /2011 1,150,000 934,610 1 50

Total for Airlines 1.50 -_

Health Care Facilities HCA unsecur sr nts 8.752 /2010 (GRP) 550.000 915,290 1.47

Total for Health Care Facilities 1.47 . . . .

Metal & Glass Containers Owens-Illinois cr unsecur debentures 7.8%/2018 (USD) 625.000 528,451 0.85 lnipress Metal Packaging sr subord 9.875% /2007 IDEM) 700,000 326,300 0 52

Total for Metal &Glass Containers 1.37 - .......

Gas Utilities Williams Cos unsecur debentures SerA 7.5% /2031 (USD) 620,000 450,861 0.72 EL Paso unsecur nts Ser144A priv plmt 7.875% /2012 (USD) 155,000 158.016 0.25 Williams Cos nts sr unsecur 7.7516 /2031 (USD) 195,000 144,727 0.23 EL Paso unsecur sr nts 7%) /2011 (USD) 50,000 48,454 0.09

Total for Gas Utilities 1.29 . _. ... . . .

Personal Products Johnsondiversey sr subord nts 9 675% /2012 750,000 783,750 1.26

Total for Personal Products 1.26 .. ...

Office Services & Supplies Buhrniann unseciir sr subord co gtd 12 25%/2009 (USD) 715,000 752,969 1 2 1

Total for Office Services & Supplies . .- .

1.21

Holding/ Nominal in

Euro unless Market % of net Investment specified value assets

Meat Poultry & Fish Smithfield Foods unsecur sr nts SerB 8% /2009

Total for Meat Poultry & Flsh

. .

(USD) 550,000 565,284 0.91

0.91 _. ...... .....

Distributors TM Group Holdirigs sr nts 11% /2008 (USD) 500,000 531,615 0 85

Total for Distributors 0.85 . -

Wireless Telecommunication Services Nextei Communications sr disc nts step cpn 0% to 15/02/2003 / 9.95% to 15/02/2008 (USO) 1,000.000 486.048 0.78 WinStar Communications sr disc nts step cpn 0% to 15/04/?005 / 14.75% to 15/04/2010 (USD) 17,070,000 1,128 0.00

- __ Total for Wireless Telecommunication Services 0.78

Multi-Sector Holdings Murrirl Miirrin Holdings Property secur sr nts 9.375% /2007 (US01 1.700.000 464,783 0.75

Total for Multi-Sector Holdings 0.75 _

Industrial Conglomerates Tyco International Group unsecur unsubord co ptd 6.1252 /2007 550,000 401,941 0.65

Total for Industrial Conglomerates 0.65 ... -. . . . . .

Casinos & Gaming Venetian Casino Resort Ser144A priv plmt 11X/2010 (USD) 325,000 331,152 0.53

Total for Casinos & Gaming 0.53 ...... . .. _.

Construction & Engineering Case nts unsecur ScrB 6.25% /2003 (USD) 295,000 291,573 0.47

Total for Construction & Engineering 0.47 _ ..

Paper Products Pindo Deli Financc sr co gtd 10.75% /ZOO7 (US01 985,000 229,405 0.37

Total for Paper Products 0.37 ....

Publishing & Printing Prlniedia Pfd Stock SerF 9 2% ROO9 3,235 98,273 0 16 Primedia Pfd Stock SerD 10% /2008 2,810 85 362 0 14

Total for Publishing B Printing 0.30

Total transferable securities admltted to officlal exchange listing or dealt In on another regulated market

_ _

_ . .- -

95.62

Building Products American Standard $1 unsecur unsuhord

1 1 8 co gtd 7 125% /2006

Total for Building Products 1.18 -

750,000 736.232 _ . .- .


Statement of investments (con ti nued) Other transferable securities not admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Euro.

Holding/ Nominal in

Euro unless Investment specified

Integrated Telecommunication Services Dobson Communications Pfd Stock PIK 13% /2009 1,764 lritermedia Communications pfd Stock SerB PIK 13 5% /2009 188 Maxcom Telecom Pfd Stock 248.106 Maxcom Teiecom 183.600 XO Communications Ptd Stock PIK 14%/2009 27,911 Global Telesystems sr nts 11% /2008 (DEM) 10.090.000

......

Market value

X of net assets

839,493

7,604 2,513 1,859

565 0

1.35

0.01 0.01 0.00

0.00 0.00

Total for Integrated Telecommunication Services 1.37

Broadcasting & Cable lV Paxson Communications regd Fid Stack PIK 13.25% /2006 39 311,902 0.50 XM Satellite Radio Wts exp. 15/03/2010 1,445 8,048 0.01

...... -. .. .....


Wireless Telecommunication Services Nextel Communications Pfd Stock sr unsecur PIK SerD 1316 /2009 539 152,821 0.25 Occidente Rule 144A Wts exp. 15/03/2004 14,970 1.516 0.00

Total for Wireless Telecommunication Services 0.25 . . . - .....

Networking Equipment Concentric Network Pfd Stock SerB PIK 13.5%/2010 2.167 219 0.00

Total for Networking Equipment 0.00 ........ - ..

.

Total other transferable securities not admitted to official exchange listing or dealt In on another regulated market 2.13


Total NAV 62,199,645 100.00

. .- .... .......

. . . . . . . . ~ ....

(1) Variable coupon rates are those quoted as of 30 June 2002.

Global Bond Fund

Investment aims To provide an attractive rate of return, measured in US dollars, through market, instrument and currency selection. The Fund consists of domestic, international and Euromarket fixed income securities of varying maturities denominated in US dollars and other currencies, including emerging markets.


9.20% 9.02% 8 50% 9.65% 10 _

...

.....

........




JPM Global Bond (Traded) Index (expressed in US dollars) ..


Nominal In US dollars

unless Market X of net Investment specified value assets

. . . _. _ Government Bonds

France Government of France OAT 5.5% /2007 (EUR) 18,700.000 19,231,859 French Treasury Note BTAN 4.5% /2006 (EVA) 15,000,000 14,842,979 Government of France OAT 5.5% /2029 (EUR) 12,200,000 12,334.940 Government of France OAT 4%/2009 (EUR) 11,800,000 11,108,967 French Treasury Note BTAN 5% /2005 (EUR) 9,000,000 9,074,659 Government of France OAT 5.5% /2010 (EUR) 2,900,000 2,969,020

Total for France ......... .... -. .

5.08 3.92 3.26 2.94 2.40 0.78

18.38 . . .

United States of America US Treasury 5.5%/2028 12,300,000 12,000,188 3.17 US Treasury 8.125%/2019 7,200,000 9,234,000 2.44 US Treasury 4.75% /2008 8,900.000 9,072,438 2.40 US Treasury 4.75% /2004 8,600,000 8,902,344 2.35

Total for United States of America 10.36 ....

Canada Government of Canada 5 5% /2009 (CAD) 36,500,000 24,356,532 6.44 Province of Quebec 1 6% /2013 (JPY) 470,000.000 3,986,851 1 0 5 Province of Ontario nts SerEMTN

(JPY) 100,000,000 896,744 0 24 1875%/2010

Total for Canada 7.73 -.

Supra-National Inter-American Development Bank unsecur 1.9% /2009 (JPY) 1,440,000,000 13,060,399 3.45 European Investment Bank nts SerEMTN 2 125% E 0 0 7 (JPY) 1,280,000.000 11,671,281 3 08 International Bank for Reconstruction & Development 2% /2008 (JPY) 300 000,000 2,730,835 0.73

Total for Supra-National 7.26 -

Italy Republic of Italy SerlNTL 0.375% /2006 (JPY) 1,600,000,000 13,431.670 3.55 Republic of Italy debentures 3.75%/2005 (JPY) 510,000,000 4,714,755 1.25 Republic of Italy 4.75% /2005 (EUR) 3,000,000 3,001,778 0.79 Republic of Italy 6% /2031 (EUR) 2,500,000 2,659,861 0.70

Total for Italy 6.29 ... .. -. . .

Germany Bundesrepublih Ser97 6 5% E 0 2 7 (EUR) 12,500,000 14,325,745 3 79 Bundesrepublik Ser97 6% /2007 (EUR) 9,000 000 9,468,398 2 50

Total for Germany 6.29 - ..

United Kingdom

UK Treasury 8% /2003 (GBP) 4,500,000 7,087,534 1 88

Total tor Unlted Klngdom 4.61

UK Treasury 8.5% /2007 (GBP) 5,900,000 10,346,533 2 73

.- _. -

Netherlands Government of Netherlands 4% /2005 (EUR) 10,000,000 9,793,601 2 59 Government of Netherlands 5% /2011 IEUR) 2,000,000 1,970,275 0 52

Total for Netherlands 3.11 __ -. _ . .

.... .... -. ......

Global Bond Fund



unless Market % of net Investment specitled value assets

-.

Government Bonds (continued)

Denmark Kingdom of Denmark 8% i2006 (DKK) 18,000,000 2,652,654 0 70 Kingdom of Denmark 7% /2004 (DKK) 16,500,000 2,319,726 0 61

Total for Denmark 1.31 . -_

Sweden Swedlsh Government Ser1035 6% /2005 (SEK) 27,000,000 3,005,990 0.79 Swedish Government Ser1043 5% /2009 (SEK) 12,000,000 1,283.506 0.34

Total for Sweden 1.13 .. . -. ... . . . . . .-

Austria Republic of Austria SerEMTN 5.5%/2007 (EUR) 2,800,000 2 866,917 0.76

Total tor Austria 0.76 - .

Australia Australia Treasury Bill nts Ser2307 0% /zoo2 (AUD) 5,000,000 2,785,310 0.74

Total for Australia 0.74 . . . . .-

. . .. .- . - .. - .. .. ... . .

Total for Government Bonds

Corporate Bonds

United States of America Pfizpr unsecur SerlNTL 0.8% /2008 Axa Financial sr unsecur debentures 7% /2028 Household Finance unsecur sr unsubord SerEMTN 6 5% /ZOO9 Prudential Insurance Company of Amerlca nts Ser144A priv plmt 8 3% /202 Ford Motor Company unsecur debentures 6.375%/2029 Florida Windstorm secur Ser144A priv plmt 7.125%/2019 Farmers Exchange Capital nts Ser144A priv plmt 7 05% /2028 General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 Williams Cos nts sr unsecur 7.75% /2031 IBM unsecur nts 0.9% /ZOO3 Nationwide Mutual Insurance nts Ser144A priv plmt 7.5%/2024 Clear Channel Communications unsecur sr unsubord 6.5% /ZOO5 ClT Group sr nts 5.5% /2005 Anthem Insurance nts Ser144A priv plmt 9.125% /2010 Albertson's unsecur debentures 7.45% /2029 Conoco unsecur sr nts 6.95% /2029 Pemex Master Trust Ser144A priv plmt 8 625% /2022 Federated Department Stores unsecur debentures 7% /2028 Raytheon sr unsecur nts 8.2% /2006 Tenet Healthcare unsecur sr nts 6.875% /2031

(JPY) 260,000,000

1,300,000

(EUR) 1,300,000

'5 1,150,000

1,475,000

1,080,000

1,450,000

(EUR) 1,000,000 1,150,000

(JPY) 100,000,000

850,000

(EUR) 826,000 (EUR) 900,000

700,000

750,000 700,000

730,000

725,000 625,000

625,000

2,197,965

1,320,085

1,263,405

1,262,193

1,201.545

1,144.510

1,075,511

988,070 842.899 838,992

807,357

804.834 800,518

791,082

779,468 71 5,384

713,575

710,559 689,226

615,247

67.97

0.58

0.35

0.33

0.33

0.32

0.30

0.28

0.26 0.22 0.22

0.21

0.21 0.21

0.21

0.21 0.19

0.19

0.19 0.18

0.16


unless Investment specified _- .. .


United States of America (continued) Met Life nts Ser144A priv plmt 7.45% /2023 600,000 Dana nts SerEUR 9% /2011 (EUR) 625,000 Aetna 'New' sr nts unsecur 7.875% /2011 575,000 Pulte Homes sr unsecur co gtd 7.875% /2011 550,000 Time Warner unsecur sr co gtd 6.625% /2029 700,000 AT&T sr nts Ser144A priv plmt 8% /2031 690,000 Corning Ser144A priv plmt 5.625% /2005 (EUR) 750,000 DaimlerChrysler co gtd 8% /2010 450,000 Centex unsecur sr nts 7.875% 1201 1 450,000 Starwood Hotels & Resorts Worldwide nts Ser144A priv plmt 7.875% /2012 475,000 EOP Operating sr unsecur 7.875% /2031 450,000 International Lease Finance nts SerEMTN 4.125%12004 (EUR) 450,000 Goldman Sachs Group unsecur sr unsubord 6.5% /2010 (EUR) 425,000 General Motors Acceptance nts 6.875% /2011 425,000 Simon Property Group nts 6.375% /ZOO7 400,000 General Motors Acceptance 8% /2031 400,000 Aetna unsecur sr nts 7.375% /ZOO6 375,000 Tyco International Group unsecur unsubord co gtd 6.125% /2007 (EUR) 500,000 AT&T Wireless Services unsecur sr nts 7.875%/2011 425,000 Kroger sr unsecur co gtd 7.5% /2031 325,000 Caipine unsecur sr nts 8.5% /2011 500,000 AOL Tlme Warner 7.625% /2031 350,000 DaimlerChrysler NA co gtd 8.5% /2031 215,000 Ford Motor Credit nts 7.25% /2011 200,000 Belo unsecur sr unsubord 8% /ZOO8 175.000 Qwest Capital Funding unsecur co gtd 7.9%/2010 325,000 Corning nts Ser144A priv plmt 6.25% /2010 (EUR) 275,000 John Hancock Global Funding II secured nts Ser144A priv plmt 7.9% /2010 100,000

Market value .-

611,527 606,726 605,659 589,918 544,327 526,167 512,805 495,563 489,545

465.500 462,251

439,640

434,234 422.248 410,398 409,100 393,12 1

360,854

347,534 338,336 335,000 315,882 237,188 200,959 184,382

183,625 168,595

113,342 . .


United Kingdom BOC Group unsecur unsubord 1% /2006 (JPY) 160,000,000 National Westminster Bank unsecur subord SerEMTN 6.625% /2049 (1) (EUR) 1,100,000 Imperial Tobacco Finance co gtd SerEMTN 6.25% /ZOO7 (EUR) 1,100,000 WPP Group unsecur unsubord

(EURI 1.040.000 SerMTNl 6% /2008 Tesco unsecur sr unsubord SerEMTN 0.7% /2006 (JPY) 120.000.000 Hammerson unsecur sr unsubord 6.25% /2008 (EUR) 850,000

(GBP) 500,000 GKN unsecur unsubord 6.75% /2019 EM1 Group unsecur unsubord co gtd 8.25% /ZOO8 (GBP) 450,000 United Utilities Water unsecur sr unsubord co gtd SerEMTN 6.625%/2007 (EUR) 650,000 Vodafone Group unsecur nts 7.75% /2010 550,000 BAT International Finance unsecur to gtd SerEMTN 4.875% /2009 (EUR) 540,000 Pearson 6.125%/2007 (EUR) 425,000 FKI unsecur unsubord co gtd 6.625% /2010 (EUR) 330,000 Rolls-Royce unsecur sr unsubord SerEMTN 6.375% /2007 (EUR) 315,000 Rolls-Royce unsecur nts 4.5% 12005 (EUR) 150.000

1,341,825

1,133,002

1,097,827

1,035,188

1,011,821

856,495 764.754

688,793

676,864 586,432

501.41 7 430,330 320,698

319,200 143,586

96 of net assets

~

0.16 0.16 0.16 0.16 0.14 0.14 0.14 0.13 0 13

0.12 0.12

0.12

0.11 0.11 0.11 0.11 0.10

0.10

0.09 0.09 0.09 0.08 0.06 0.06 0.06

0.06 0.04

0.03

8.13

0.35

0.30

0.29

0.27

0.27

0.23 0.20

0.18

0.18 0.15

0.13 0.11 0.09

0.09 0.04


..... . . . . . . . . . . . . . __ .-_"I_..__".__. .... .......... ................ .I.-l...l.. ........... "."-

Global Bond Fund



unless Market Investment specified value

. -


Netherlands Olivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 VNU unsecur sr unsubord 6.625% /ZOO7 RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% ROO7 ABN Amro Bank subord SerEMTN 4.625% /2009 Deutsche Telekom International Finance unsecur co gtd 8.125%/2012 Fixed-Link Finance secur SerG2-X 5.75%/2009 (1) Generali Finance co gtd 5.0625%/2019 (1) TPSA Eurofinance co gtd SerEMTN 6 125% /2004


France Vivendi Environnement sr nts SerEMTN 5.875% /2012 Vivendi Environnement nts SerEMTN 5.875% /2008 France Telecom unsecur SerRegS 6.75% /2008

Total for France

Sweden Securitas unsecur sr unsubord SerEMTN 6.125% /2008 Assa Abloy nts SerEMTN 5.125%/2006

Total for Sweden -.

Luxembourg Syngenta Luxembourg Finance (#2) unsecur unsubord co gtd 5.5% /2006 Sogerim unsecur co gtd SerEMTN 6.125%/2006

(EUR) 1,350,000 (EUR) 850,000

(EUR) 820,000

(EUR) 850,000

(EUR) 700.000

(EUR) 550,000 (EUR) 500.000

(EUR) 500,000

1,339,801 862,587

819.733

799,844

681.027

5 5 4.8 5 5 473,915

449,329

X of net assets

0.35 0.23

0.22

0.21

0 18

0.15 0.13

0.12

1.59

(EUR) 770,000 737,280 0 19

(EUR) 650,000 638,790 0 17

(EUR) 500,000 467.536 0.13

0.49 ..

(EUR) 1,025,000 1,035,944 0 27 (EUR) 500.000 492,346 0 13

0.40 --

(EUR) 850,000 848,909 0.22

(EUR) 500,000 499,975 0.14

Total for Luxembourg 0.36

Australia Pacificorp Australia secured Ser144A priv plmt 6.15% /2008 1,275,000 1,318,050 0.35


Germany Depfa Pfandbriefbank unsecur sr unsubord SerEMTN 0.15% /2003 (JPY) 100,000,000 834,257 0.22

Total for Germany 0.22 .


unless Market X of net Investment specified value assets

... .... .


Spain Santander Central Hispano Issuances subord bnk gtd SerEMTN 6% /2011 (EUR) 800,000 772,364 0.20

Total for Spain 0.20 _ ...

Qatar Ras Laffan Natural Gas secur Ser144A priv plmt 8.294% /2014 575.000 610,938 0.16

Total for Qatar 0.16


- . ...... -. .

..... .. . . . . . . . __


Untted States of America Fannie Mae SerEMTN 1 75% /2008 (JPY) 1,200,000.000 10,764,228 2.84 FNMA sr unsubord SerEMTN 6 5% /2002 (AUD) 9,600,000 5,390.422 1 43

_. ..


Total for Government Guaranteed Bonds

4.27

4.27 -.


United States of America Citibank Credit Card Issuance Trust 5.375%/2011 (EUR) 1,700,000 1.678.763 0.44


Total for Mortgage and Asset Backed Securities 0.44

Total Invesiinent Securities 331.732.780 87.67

Total NAV 37a,391,294 100.00

(1) Variable coupon rates are those quoted as of 30 June 2002

.-

..... .

.......... ~

Switzerland Adecco Financial Service co gtd 6% /2006 (EUR) 800,000 798,5 15 0.21

Total for Switzerland 0.21 ............... -_

Short Maturity Euro Bond Fund Investment aims To provide an attractive rate of return, measured in Euro, through market and instrument selection. This objective will be achieved by investing in high quality fixed income securities denominated in Euro. The Fund will invest primarily, in order to reduce volatility, in individual securities with maturity dates having a maximum of five years.

Change in net asset value per share For the qix months ended 30 June 2002

1.36% 1.19% 0.61% 178% __ _- 2 0

1.5 ..... .-



fl Fund (net of expenses) Class B shares

*” , MSCl Emu Sovereign Debt Index 1.3 Years (expressed in Euro) .... __ __ .


Nominal in Eum unless Market

Investment specified value

Germany Treuhandanstalt govt gtd 6% /2003 69,000,000 70,932,000 Bundesobligation SerlZ7 4.5% /2003 52,000,000 52,364,000 Treuhandanstalt god gtd 7.5% /2004 48,000,000 51,398,400 Bundesobligation Ser126 4.5% /2003 23,000,000 23,129,950 Depfa Pfandbriefbank secur SerG3 5% /2005 20,000,000 20,328.871 Eurohypo secur Pfandbriefe Ser777 3.75%/2005 20,000,000 19,544.000 Bundesrepublik Deutschland Ser92 8% /ZOO2 16,000,000 16,032,000 Hypothekenbank in Essen secur pfandbriefe Ser398 6.5% /2005 10,000,000 10,571,000 DGZ secur pfandbriefe Ser403 5.25% /2005 10,000,000 10,238,000 Allgemeine Hypothekenbank secur pfandbriefe Ser491 4.75% /2005 10,000,000 10,035,908 Depfa Ffandbriefbank secur Ser452 4.75% /2003 1,500,000 1,510,979

Total for Germany

.... . . . . . . .

-. .

Netherlands Government of Netherlands 5.75% /2004 85,000,000 Government of Netherlands 4% /2005 44,000,000 Government of Netherlands 4.75% /2003 43,000,000 Government of Netherlands 5.75% /2002 34,000,000 Unilever unsecur unsubord co gtd SerEMTN 4.75% /2004 6,000,000 DaimlerChrysler International Finance unsecur unsubord co gtd SerEMTN 6.125% /2006 5,000,000 RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 3,180,000 SNS Reaal Groep unsecur sr unsubord SerEMTN 5% /2004 2,300.000 Deutsche Telekom International Finance unsecur unsubord co gtd 5.875% /ZOO6 2,000.000 Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 1,825,000 E.On International Finance co gtd SerEMTN 5.75% /2009 1,500,000 Vodafone Finance co gtd 4.875% /2004 1,000,000 Akzo Nobel unsecur 6.375% /2003 (NLG) 500,000

Total for Netherlands . . .....

% of net assets

5.93 4 38 4.30 1 93

1.70

1.63 1.34

0.88 0.86

0.84 0.14

23.93

87,337,500 7.31 43,634.800 3.65 43,296,700 3.62 34.149.600 2.86

6,061,500 0.51

5,127,278 0.43

3,219,020 0.27

2,322,885 0.19

1,894,620 0.16

1,810,583 0.15

1,524,430 0.13 998,500 0 08 232,454 0.02

France French Treasury Note BTAN 3 5% 1’2004 French Treasury Note BTAN 5% /ZOO5 French Treasury Note BTAN 4 5% /2003 Dexia Municipal Agency secured collateralized SerEMTN 5 5% /2006 Schneider Electric 3 75% /2004 Thomson CSF sr nts SerEMTN 6.125% /2005 Dexia nts SerEMTN 3 625% /2004

Total for France ~

112,000,000 11 1,020,000 48,000,000 49,008,000 37,000,000 37,284,900

10,000,000 10.314.240 5,000,000 4,944,250 2,074,000 2.146.776 1,725,000 1,707,146

19.38

9.29 4.10 3.12

0.86 0.41 0.18 0.14

18.10

Italy Republic of Italy 4.75% /ZOO5 65,000.000 65,858,000 5.51. Republic of Italy 4% /2004 60,000,000 59,922,000 5.01

Total for Italy 10.52 ...........

United States of America Freddie Mac unsecur sr nts 4 5% /2004 40,000,000 40,309,294 3 37 Citibank Credit Card Master Trust 4.875% /2005 (DEM) 18,945,000 9,763,432 0 82 Chase Credit Card Master Trust Ser19981 5.125% /2005 7,886,000 8,010,599 0 67

Short Maturity Euro Bond Fund



Invesbnent specified .

United States of America (continued) MBNA America Europe Ser6 4.375% /2004 Procter & Gamble unsecur sr unsubord 5.75%/2005 General Electric Capital unsecur sr unsubord SerEMTN 3.625% /2002 Ford Motor Credit unsubord 6% /2005 General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 General Motors Acceptance unsecur unsubord SerEMTN 5.5% /2005 International Lease Finance nts SerEMTN 4.125%/2004 Household Finance unsecur unsubord 5.25% /2005 New York Life Funding secur sr nts SerEMTN 5.125% /2006 Ford Motor Credit unsecur unsubord SerEMTN 5.625% /2004 Lehman Brothers Holdings sr nts SerEMTN 5.625% /2006 International Lease Finance nts SerEMTN 3.625% /2002 Merrill Lynch & Co nts SerEMTN 5.75% /2003 Goldman Sachs Group nts SerEMTN 3.913%/2006 (1) CIT Group sr nts 5.5% 1’2005 Household Finance unsecur sr unsubord SerEMTN 5.625% /2005 General Motors Acceptance nts SerEMTN 5.875% /ZOO4 Merrill Lynch &i Co nts SerEMTN 5.25%/2003 General Motors Acceptance unsecur unsubord SerEMTN 4.5% /ZOO2

5,630,000

5,000,000

4,000,000 3,400,000

3,000,000

3,000,000

2,900,000

2,925,000

2,750,000

2,675,000

2,225,000

2,250,000

2,150,000

2.000.000 1,850,000

1,600,000

1,100,000

(FRF) 6,770.000

900.000 Merrill Lynch & Co nts SerEMTN 6.125%/2002 457,347


Austria Republic of Austria Ser98-2 4 3% /2003

.

50,000,000

Market % of net value assets . ..

5,635.630 0.47

5,177,482 0.43

3,997,893 0.33 3,406,363 0.28

3,001,558 0.25

2,980,200 0.25

2,868,932 0.24

2,860,844 0.24

2,773,925 0.23

2,685,031 0.22

2,255,038 0.19

2,250,000 0.19

2,184,555 0.18

1,998,860 0.17 1,666.243 0.14

1,592,654 0.13

1,112,815 0.09

1,043,550 0.09

900,765 0.09

458,971 0.05

9.12 . - _ _

50,295,000 4.21 . __

Total tor Austrla 4.21

Be I g I u m Kingdom of Belgium 4 75% /2005 37,000,000 37,444,000 3 13 SCA Coordination Center unsecur unsubord co gtd SerEMTN 5 375% E 0 0 7 1,000,000 1,006,999 0 09

Total far Belglum 3.22 . _.

United Kingdom Credit SuisseLondon subord 6.25% /2003 OEM) 10,043,000 5,260,176 0.44 British Telecom step cpn 5.625% to 16/02/2002 / 5.875% to 16/02/2004 5,000,000 5,071,000 0.42 Bank of Scutland Treasury Service bnk gtd SerMTNl 3.425% /2004 (1) 4,500,000 4,495,605 0.38 John Hancock Global Fund secur SerEMTN 3.875% /2006 4,000,000 3,879,684 0.32 WPP Group unsecur unsubord 5.125% /2004 2,850,000 2,863,711 0.24 Travelers Insurance Company Institutional Fund secur sr unsubord SerEMTN 5.5% /ZOO3 2,000,000 2,031,000 0.17 Abbey National Treasury Services unsecur bnk gtd 4.875% /2003 1,600,000 1,611,184 0.13

Nominal in Eum unless Market % of net

Investment specified value assets

United Kingdom (continued) Travelers Insurance Company Institutional Funding sr secur SerEMTN 4 25% /2006 1,500,000 1,468,137 0.12 TI Group unsecur unsubord 6.375% /2005 1,080,000 1,114,420 0.11


. . .

. - . . . ...

Spain lnstituto de Credito Oficial unsubord govt gtd SerEMTN 3 875% /2004 7,500.000 7,463,250 0 62

Total for Spaln 0.62

Luxembourg Syngenta Luxembourg Finance (#2) unsecur unsubord co gtd 5 5% /2006 3,000,000 3,033,900 0.25

Total for Luxembourg 0.25 . . . . ... . .

Sweden Assa Abloy nts SerEMTN 5 125% /2006 1,600,000 1,595,360 0 13


Total Investment Securities 1,097,458,350 91.81

Total NAV 1,195,412,855 lw.w (1) Variable coupon rates are those quoted as of 30 June 2002

__

- _

. .. .__

US Bond Fund Investment aims Statement of investments To provide an attractive rate of return, measured in US dollars, through investment primarily in US dollar denominated fixed income securities issued by governments, agencies and corporations either in the US domestic markets or in the Euromarkets. The Fund may also invest on an ancillary basis in foreign fixed income securities, including emerging markets fixed income securities.


3 52% 3 01% ...

3 72% 4 -- . .

.. . ... .




Lehman Brothers Aggregate Index (expressed in US dollars) '

3.79%

... . .... .

. . .

.. .. .


Investment


unless Market X of net specltled value assets

Mortgage and Asset Backed Securities United States of America FNMA TBA 6.5% /2032 FGLMC TEA 7% /2032 FNMA T8A 6% /2032 GNMA TBA 7% /2032 FNMA TBA 7% /2032 Fannie Mae Strip PO 0% /2031 GNMA 6.5% /2032 FNMA Pool 607155 7.5%/2031 FGLMC TEA 6.5% 07/2032 FGLMC 6.5% 08/2032 GNMA TBA 6% /2032 FNMA Pool 535148 8% /2030 GNMA Pool 557647 7% /2031 FNMA Pool 253585 8% /2031 FNMA Pool 323991 7.5% /2029 FNMA Pool 602073 7.5% /2031 FNMA Pool 535127 8%/2030 MBNA Master Credit Card Trust 2000-E A 7.8%/2012 FNMA Pool 535190 8% /2030 Chase Credit Card Master Trust 2001-4 A 5.5% /2008 FNMA Pool 535996 7.5% /2031 FNMA Pool 253813 8% /2031 Fannie Mae Strip 317 10 8% /2031 FNMA Pool 628751 7.5%/2032 Nissan Auto Receivables Owner Trust 2001-C A4 4.8% /2007 FNMA Pool 596192 7.5%/2031 FNMA Pool 570642 8% /2031 FNMA Pool 545562 7.5%/2032 MBNA Master Credit Card 2000 - I A 6.9% /2008 FNMA Pool 2531 14 8% /2030 Honda Auto Receivables Owner Trust

FNMA Pool 545395 8% /2031 FNMA Pool 535898 8% /2031 FNMA Pool 529097 8% /2030 Citibank Credit Card Issuance Trust 2000-C1 C 1 7.45% /2007 FNMA Pool 573254 7.5% /2031 Government National Mortgage Association 2001-46 SA 5.74%/2031 (1) FNMA Pool 535204 8% /2030 FNMA Pool 254383 7.5% /2032 FNMA Pool 545003 8% /2031 FNMA Pool 557184 8% /2030 FNMA Pool 535481 8% /2030 Freddie Mac FNR 2001 5.71%/2031 (1) Freddie Mac Gold Pool C01214 7.5%/2031 Freddie Mac Gold Pool C45610 7.5% /2030 FNMA Pool 591183 8%/2031 FNMA Pool 535757 8% /2031 FNMA Pool 190292 7.5% /2027 FNMA Pool 568354 8%/2031 FNMA Pool 514574 7.5% /2030 FNMA Pool 616898 7.5%/2031 FNMA Pool 566715 8%/2031 FNMA Pool 526645 7.5% /2029 FNMA Pool 252806 7.5% /2029

FNMA Pool 253481 8%/2030 FNMA Pool 541247 8% /2030

2000.1 A3 6.62% /2004

GNMA 1999-27 6.76%/2029 (1)

20,500,000 17,000,000 17,500,000 9,600,000 8,750,000 7,823,280 6,500,000 5,864,928 5,500,000 5,500,000 4,200,000 3,863,380 3,142,015 2,073,001 1,999,800 1,837,346 1,676,557

1,430,000 1,500,557

1,490,000 1,294,198 1,276,668 7,823,281

999,999

900,000 858,658 835,323 813,039

700,000 682,780

693,914 660,990 595,785 557,012

535,000 545,020

6,900,000 513,652 508,052 491,002 434,558 423,466

4,759,198 412,052 410,790 392,848 373,459 354,892 336,827 333,011 331,151 318,780 321,199 319,069

2,991.398 296.161 294,073

20,788,281 17,560,469 17,376,953 9,967,500 9,035,742 7,014,056 6,621,875 6,154,480 5,603,125 5,588,516 4,191,469 4,103,643 3,260,815 2,201,901 2,099,170 1,928,056 1,780,822

1,625,724 1,593,876

1,553,923 1,358,093 1,356,051 1,290,841 1,049,369

912,933 901,050 887,263 853,179

758,406 725,235

708.659 702,091 632,831 591.647

575,246 571.928

569,319 545,596 533,135 521,532 461,579 449,797 439,907 432.395 431,071 417,275 396.684 374,632 357.770 349,558 347,500 338,601 337,159 334,924 324,7 16 314,576 312,359

6.06 5.12 5.07 2.91 2.64 2.05 1.93 1.80 1.64 1.63 1.22 1.20 0.95 0.64 0.61 0.56 0.52

0.47 0.47

0.45 0.40 0.40 0.38 0.31

0.27 0.26 0.26 0.25

0.22 0.21

0.21 0.21 0.18 0.17

0.17 0.17

0.17 0.16 0.16 0.15 0.13 0.13 0.13 0.13 0.13 0.12 0.12 0.11 0.10 0.10 0.10 0.10 0.10 0.10 0.09 0.09 0.09

US Bond Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment


unless Market X of net specified value assets

Mortgage and Asset Backed Securities (continued) United States of America (continued) Government National Mortgage Association Strip 2001-22 SK 4.03%/2031 (11 FNMA Pool 253437 8% /2030 Freddie Mac Strip 215 IO 8% /2031 FNMA Pool 583355 8% /2031 Fannie Mae Strip 306 IO 82 /2030 FNMA Pool 554693 8% /2030 FNMA Pool 253643 7.5% /2031 FNMA Pool 563934 8% /2031 FNMA Pool 535533 8% /2030 FNMA Pool 545551 8% /2032 FNMA Pool 541938 8% /2030 FNMA Pool 252807 8% /2029 Freddie Mac Gold Pool C42445 8% /2030 FNMA Pool 415853 7.5%/2028 Fannie Mae Strip 1997-53 PI 89; /202/ FNMA Pool 569342 8% /2031 F a m e Mae Strip 270 2 8.5% /2023 Fame Mae Strip 2000-46 SA 6 71%) /2030 I1 1 Freddie Mac Gold Pool C01025 8% /2030 Freddie Mac Gold Pool C41920 8% /2030 Government National Mortgage Association Strip 1999-30 SA 6.160%/2029 I11 FNMA Pool 538501 8% /2030 Fame Mae Strip 2000-32 SM 6.71%/2030 (11 FNMA Pool 542772 8% /2030 FNMA Pool 547424 8% /2030 FNMA Pool 563584 8% /2030 Freddie Mac Gold Pool GO1135 8%/2030 FNMA Pool 530188 8% /2030 FNMA Pool 601971 7.5% /2031 Freddie Mac Gold Pool C39781 8% /2030 FNMA Pool 564495 8% /2031 FNMA Pool 633854 8% /2032 FNMA Pool 253516 8% /2030 F a m e Mae Strip 2000-34 S 6.71!4/2030 11) Freddie Mac Gold Pool C01221 8% /2031 Freddie Mac Gold Pool C36886 8% /2030 GNMA Pool 507872 7% /2029 F a m e Mae Strip 307 IO 8% /2030 Freddie Mac Strip 207 10 7% /2030 Freddie Mac Strip 2234 SC 6.71%/2029 11) F a m e Mae Strip 2000-31 SB 6.16%/2027 (1) Government National Mortgage Association Strip 199938 SM 6.56%/2026 I11 FNMA Pool 522601 8% /2029 FNMA Pool 535198 8% /2030 FNMA Pool 548831 8% /2030 FNMA Pool 614467 8%/2031 FNMA Pool 571788 7.5% /2031 FNMA Pool 562439 7.5% /2031 FNMA Pool 601 136 8% /2031 GNMA Pool 539515 7%/2031 Fannie Mae Strip 296 2 8% /2024 GNMA Pool 507783 7% /2029 FNMA Pool 190317 8%/2031 Freddie Mac Strip 2172 SB 5.16%/2029 (1) FNMA Pool 600298 7.5% /2031 FNMA Pool 533713 8% /2030 FNMA Pool 592703 8% /2031 FNMA Pool 536228 7.5% /2030

3,067,914 278,627

1,818,553 276,469

1,667,936 260,478 250,001 244,540 238,576 235,702 234,962 225.346 218.304 213,483

1,043,179 193,099 857,584

2,398,646 175.394 173,297

1,865,616 154,339

2,253,358 142.331 136,785 134.666 132,606 129,703 128.590 123,195 12 1,670 120.983 115,577

1,486,787 112,980 108,301 108,245 616,395 596,183

1,434,493 1,736,265

1,158,293 79,178 77.009 72,025 70,593 71.033 70,408 64,864 61,908

292,186 54,953 49.624

1308.775 25,170 24,436 17,649 10.759

300,287 295,952 295,198 293,659 281,452 2 7 6,6 7 5 262,343 259,746 253,411 250,358 249,572 239,360 232,016 225,357 209,053 205,105 192,651 192,408 186.41 1 184,182

166,321 163,936 157,915 151,182 145,290 143,039 140,935 137,768 134,939 130,932 129,235 128,506 122,763 120,959 120,077 115,104 112,506 103,480 99,909 97,809 96,843

87,381 84,102 81,798 76,504 74,983 74,540 73.884 68,897 64.249 60,523 57,048 52,710 27,199 26,412 25,955 18.747 11,290

0.09 0.09 0.09 0.09 0.08 0.08 0.08 0.08 0.07 0.07 0.07 0.07 0.07 0.07 0.06 0.06 0.06 0.06 0.05 0.05

0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.03

0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.00

. .. .. . . . ..


Total for Mortgage and Asset Backed Securities

47.06

47.06 . . -

Investment _-. . .- . .

Corporate Bonds United States of America Prudential Hoidines '6 SerFSA oriv olmt , .

7.245%/2023 Florida Windstorm secur Ser144A priv plmt 7 125%/2019 Credit Suisse First Bostori USA nts 5.875% e 0 0 6 AIG SunAmerica Global Financing VI sr nts secur Ser144A priv plmt 6.3%/2011 John Hancock nts Ser144A priv plmt 7 375%/2024 News America sr unsecur debentures 7.28%/2028 Prudential Holdings 'c' Ser144A priv plmt 8.695% /2023 General Electric Capital nts SerMTNA 6.75% /2032 AOL Time Warner 7.625% /2031 Chubb unsecur nts 6.15% /2005 Goldman Sachs Group 6.875% /2011 Marriotl International unsecur nts SerE 72 /ZOO8 11) Massachusetts Mutual Life Insurance nts Ser144A priv plmt 7.625% DO23 World Financial Properties pass thru certs Ser144A priv plmt 6.95% /2013 GTE Florida unsecur debentures SerMBlA 6.86% /2028 Ford Motor 6.625% /2028 CVS nts 5.5% /ZOO4 Aetna 'New' sr nts unsecur 7.875% /2011 EOP Operating unsecur sr nts 6.763% /ZOO7 Clear Channel Communications unsecur sr nts 7.65%/2010 Honeyell International 6.125% /2011 Raytheon sr unsecur nts 8.2% /2006 America West Airlines pass thru certs SerOl-l 7.1%:2021 Anthem Insurance sr nts Ser144A priv plmt 9% /2027 J.P. Morgan Chase unsecur subord 6%/2009 Bank One subord nts SerMTNA 6% /ZOO9 Sun Microsvstems unsecur sr nts 7.65% /2009

Met Life nts Ser144A priv plmt 7.45% /2023 General Motors Acceptance nts 6.875% /2011 AT&T sr nts Ser144A priv plmt 8% /2031 AT&T Wireless Services sr nts unsecur 8.75%/2031 Simon Property Group nts 6.375% /ZOO7 Comcast Cable Communications unsecur sr nts6.759:/2011 Nationwide Mutual Insurance nts Ser144A oriv olmt 8.25% /2031

United Technologies unsecur nts 6 1% /2012 Marsh & McLennan unsecur sr nts 6.625% /ZOO4 800.000

800,000

, .

Lowe's Companies sr unsecur debentures 6.875% /2028 May Department Stores co ytd 7.45% /2016 Kroger sr unsecur co gtd 7 5% /2031 Axa Financial unsecur sr nts 6.5%/2008 General Motors Acceptance 8% /2031 MBNA America Bank nts SerBKNT 6.5% /ZOO6 Centex unsecur sr nts 7 875% /2011 Tenet Healthcare unsecur sr nts 6.875% /2031 Continental Airlines pass thru certs Ser981A 6 648?4/2017


unless specified

2.235.000

1,615,000

1,600,000

1,390,000

1,335,000

1,525,000

1,225,000

1,340,000 1,445,000 1,230,000 1,255,000

1,225,000

1,115.000

1,129,824

1,175,000 1,320,000 1,070,000 1,040,000 1,025,000

1,030,000 1,025,000

925,000

998,703

870,000 900,000 845,000 810,000 820.000

800,000 1,000.000

985,000 740,000

850,000

725,000

735.000 660.000 685,000 670,000 690,000 670,000 635,000 700.000

698,469


2,348,784

1,711,466

1,656,434

1.438.664

1,390,204

1,357,267

1,329,162

1,327,830 1,304,142 1,302,251 1,300,409

1,285,271

1,188,949

1,175,734

1.165.118 1,113,064 1.100.157 1,095,453 1,070,100

1,053,055 1,047,126 1,020,054

1,019,178

981.419 914,729 866,587 855,140 852,155 846,076 815.369 794,820 785,000

760,707 759,236

759,208

756.307

739,224 734,547 713,109 708,361 705,697 693.735 690,802 689.076

685,659

0.68

0.50

0.48

0.42

0.41

0.40

0.39

0.39 0.38 0.38 0.38

0.38

0.35

0.34

0.34 0.33 0.32 0.32 0.31

0.31 0.31 0.30

0.30

0.29 0.27 0 25 0 25 0.25 0.25 0.24 0.23 0.23

0.22 0.22

0.22

0.22

0.22 0.21 0.21 0.21 0.21 0.20 0.20 0 20

0.20

-. .. . - .- . . . . . ._ . .

US Bond Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment



Corporate Bonds (continued] United States of America (continued) Williams Cos unsecur debentures SerA 7.5%/2031 Conoco unsecur 5r nts 6.95% /2029 Farmers Exchange Capital nts Ser144A priv plmt 7.05% 1'2028 May Department Stores nts 6.9% /2032 Lowe's Companies unsecur debentures 6.5% /2029 Citigroup urisecur sr nts 6?6 /2012 Lockheed Martin unsecur debentures co gtd 7.75% /2026 American General nts 7.5% /2025 Pharrnacia unsecur debentures 6.6% /2028 Bancwest secur nts Ser144A A priv plmt 6.93% /2003 Farmers Insurance Exchange Ser144A priv plnit 8.625% /2024 Ford Motor unsecur nt5 7.45% /2031 Hartford Life unsecur debentures 7.65% /2027 Nationwide Mutual Insurance nts Ser144A priv plmt 7.5% /2024 Kroger unsecur sr nts subs gtd 8% /2029 Hartford Life unsecur sr nts 7.375% /2031 Ford Motor Credit nts 7.25% /2011 Raytheon sr unsecur nt5 8.3% /2010 Household Finance unsecur nts 8% /2010 OaimlerChrysler NA co gtd 8.5% /2031 Prime Property Funding II nts Ser144A priv plmt 7% /2004 DdimlerChrysler NA Holding co gtd 7.2% /ZOO9 Cigna sr unsecur nts 6 375% /2011 Goldrnan Sachs Group unsecur sr nts 6.6% /2012 Iime Warner unsecur sr co gtd 6.625% /2029 Cooper Industries nts Ser144A priv plmt 5.254'0 /2007 Wellpoint Health Networks sr unsecur nts 6.375%/2006 Washingtoil Mutual subord nts 8.25% /2010 Sprint Capital unsecur nts 8 375% /2012 Hyatt Equities nts Ser144A priv plmt 6.875% 1'2007 J P. Morgan Chase R Co nts 5.35% /2007 EL Paso unsecur nts Ser144A priv plmt 7.875%/2012 Veriion Communications unsecur debentures 6.94% /2028 Federated Department Stores unsecur sr nts 6.625% /7008 Hertz unsecur sr nt5 7.625%/2012 News America Holdings co gtd sr debentures 7.75% /2024 TCI Communications unsecur sr debentures 7.875!4 /2026 Comcast Cable Communications nts unsecur 8.375% /2007 Household Finance unsecur sr unsubord

Federated Department Stores sr debentures 6.9% /2029 MeadWestvaco unsecur co gtd 6.85% /2012 World Financial Properties pass thru certs Ser144A priv plmt 6.91%/2013 Household Finance iirisecur sr unsubord 6.4% /2008

5.875% 12009

935,000 640,000

880,000 650,000

665,000 635,000

575,000 570,000 620,000

600,000

705,000 670,000 570,000

655.000 560,000 575,000 590,000 515,000 545,000 480,000

505,000 500,000 495,000 500,000 640,000

475,000

450,000 410,000 550,000

440,000 435,000

435,000

475,000

405,000 420,000

425,000

440,000

380,000

400,000

390.000 360,000

359,466

355,000

671,466 654,065

652,724 646,750

638,917 637.877

636,735 629,565 629,302

627,476

623.921 623,667 623,410

622,140 616.629 612,597 592,830 586,978 585,872 529,536

525,583 521,840 510,823 509,370 497.670

474,940

473,783 466,610 452.265

441,899 439,020

437,946

427.744

422,690 413,633

402,883

391,031

389,194

384.913

376,589 376,233

372,845

356,134

. .

0.20 0.13

0.19 0 19

0.19 0.19

0.19 0.18 0.18

0.18

0 18 0.18 0 18

0.18 0 18 0.18 0.17 0.17 0.17 0 15

0.15 0 1 5 0.15 0 15 0 15

0 14

0 14 0.14 0.13

0 13 0.13

0.13

0.12

0.12 0.12

0 12

0.11

0.11

0.11

0.11 0.11

0.11

0.10

Investment

Nomlnal in US dollars

unless Market I of net specifled value assets

Corporate Bonds (continued) United States of America (continued) Consolidated Natural Gas Company sr nts unsecur unsubord SerC 6.25% /2011 Kroger sr unsecur co gtd SerB 7.7% /2029 Southwest Airlines pass thru certs 5.496% /ZOO6 Vornado Realty Trust nts 5.625% /2007 Citicorp subord nts SerMTNF 6.375% /2008 Axa Financial sr unsecur debentures 7% /2028 Household Finance nts 6.75% /2011 Continental Airlines pass thru certs Ser974A 6.9%/2018 Alltel nts 7% /2012 US Airways Pass Through Trust pass thru certs SerOOl 8.11%/2017 Metropolitan Life Insurance nts Ser144A priv plmt 7.8% /2025 NiSource Finance sr unsecur co gtd 7.875%/2010 J.P. Morgan Chase & Co subord nts 6.625%/2012 Mohawk Industries unsecur nts SerD 7.2%/2012 Ford Motor Credit unsecur nts 7.37504 /2009 Delphi Auto Systems debentures 7.125% /2029 May Department Stores co gtd 7.875% /2030 Hertz unsecur sr nts 7.625%/2007 Hertz nts 7.4%/2011 Cigna sr unsecur nts 7% /2011 Detroit Edison 1st mortgage sr 6.125%/2010 ATRT sr nts Ser144A priv plmt 7.3% /2011 Williams Cos nts sr unsecur 7.75% /2031 Federated Department Stores unsecur debentures 7% /2028


United Kingdom Systems 2001 Asset Trust pass thru certs Ser144A priv plmt 6.664% /2013

350,000 320,000

325,000 335,000 305,000 315,000 315,000

316,540 310,000

258,926

250,000

260,000

250,000

235,000 220,000 230,000 175,000 185,000 190.000 150,000 150,000 165,000 145,000

70,000

1,394,068

350,942 341,267

332,601 332,568 321.385 319,867 313,425

312.934 311,533

277,027

269,768

268.711

257.823

249,153 227.745 227.392 194,125 189,829 185,823 160,789 149,504 136,950 106.279

68,606

2,118,523


Mexico Pemex Master Trust Ser144A priv plmt 8.625% /2022 275,000 268,812

0.10 0.10

0.10 0.10 0.09 0.09 0.09

0.09 0.09

0.08

0.08

0.08

0.08

0.07 0.07 0.07 0.06 0.06 0.05 0.05 0.04 0.04 0.03

0.02

22.00

0.62

0.62 ....

0.08 . . - -

Total for Mexico 0.08

Canada Telus nts 8%/2011

Total for Canada

230,000 191,109 0 06

0.06 . . . . .- -


Government Bonds

US Treasury Bill 8.75% /2020 3,750,000 5,082,422 1 48

United States of America US Treasury Bill 8 125% /2019 5,500,000 7,053,750 2.06

US Treasury Bill 0% 17/10/2002 (2) 830,000 822,111 0 24 US Treasury Bill 0% 18/07/2002 (2) 100,000 99.508 0.03


. . . . . . . . . . . . . . . . . . . . . . . . . . . ..... .... .. . . . . . . . . . . . . . . . . . . . . . . .

US Bond Fund



unless Market % of net Investment specified value assets

. ._ . ..... ._ ... -_

Government Bonds (continued) Mexico United Mexican States nts 7.5% /2012 1,195,000 1,181,905 0.35 United Mexican States SerMTN 8.3% /2031 325.000 317,092 0.09

Total for Mexico 0.44 .- __ . . .


Government Guaranteed Bonds United Status of America Federal National MortRage Association 6.625% /2030 2,500,000 2,643,750 0.77 NewYorkStatePower SerB6.11%/2011 1,170,000 1,186,474 0.35

Total for United States of America 1.12 . . . . . . . . .. ... ~.

Totel for Government Guaranteed Bonds 1.12

Total Investment Securities 257,372,601 75.19 . __ _ _ _ .. -.

Total NAV 342,302,599 1w.m

(1) Variable coupon rates are those quoted as of 30 June 2002 (2) Security held as collateral against bond futures positions by the broker.

US High Yield Bond Fund Investment aims To seek to maximise total return, measured in US dollars, through investment primarily in lower rated and unrated US fixed income securities that offer a yield above that generally available on debt securities in the three highest rating categories of S&P or Moody's.

Change in n e t asset value per share For the six months ended 30 June 2002 ......... .- ._ .... ._ ... . ~~

(9.231% (9.43% (9.83% 0.18% 2 ............. -. ........... ..... . - _

...... .... .- .~

-4 ; ~ ~ ~ - ~ - - ~ ................ ..I ......... . . . . . . . . . . . .........

.... . . . . . -6 ..

. . . . -8 -10 .. ...... ~ __



Fund (net of expenses) Class B shares & r i* First Boston High Yield Bond Index (expressed in US dollars)

(8 931% (9 17)% (9.941% 0.18% . . . 2

@ .-

.4 ...... ... - __ .. -. -6 - -8

. . . . . . .

. . . . .

. .

-10 .......................... ........... ................... ....

Fund (net of expenses) Class IX shares

Fund (net of expenses) Class AX shares

1 Fund (net of expenses) Class BX shares

's: First Boston High Yield Bond Index (expressed in US dollars)


Investment



Corporate Bonds United States of Amerlca Smithfield Foods unsecur sr subord nts 7.625% /2008 Dana unsecur nts 9% /2011 Station Casinos sr subord nts 9.75% /2007 Salem Comtnunications Holding unsecur sr subord co gtd SerB 9% /2011 Allied Waste North America co gtd SerB 8.875% /2008 Chesapeake Energy sr unsecur co gtd 8.125% /2011 Horseshoe Gaming Holding unsecur co gtd SerB 8.625% /2009 Alliance Atlantis Communications unsecur sr subord nts 13% /2009 Toll unsecur sr subord nts 8.25% /2011 PG&E National Energy Group sr nts unsecur 10.375%/2011 Corning sr unsecur debentures CV zero cpn /2015 National Steel secur SerD 9.875% /2009 International Game Technology unsecur sr ntq 8.375% /2009 Kroger secur sr nts Ser144A priv plmt 8.5% /2017 Hilton Hotels unsecur sr nts 7.95%/2007 CB Richard Ellis unsecur sr subord co gtd 11.25% /2011 Tesoro Escrow sr subord nts Ser144A priv plmt 9.625% /2012 Charter Communications Holdings unsecur sr nts 10.25%/2010 Manitowoc unsecur sr subord 10.375% !2011 Nextmedia Operating unsecur sr subord cogtd 10.75%/2011 Vintage Petroleum unsecur sr subord nts 7.875% /2011 Michael Foods unsecur sr subord nts SerB 11.75%/2011 Collins & Aikman Products $r nts Ser144A priv plmt 10.75%/2011 BRL Universal Equipment 2001 s e w sr 8.875%/2008 Calpine unsecur sr nts 8.5% /2011 Aetna 'New' sr nts unsecur 7.875% /2011 Starwood Hotels & Resorts Worldwide nts Ser144A priv plmt 7.875% /2012 Harrah's Operating Company sr unsecur co gtd 8% /2011 Echostar DBS sr nts Ser144A priv plmt 9.1 25% /ZOO9 AmerisourceBergen unsecur sr nts 8.125%/2008 Williams Cos unsecur debentures SerA 7.5% /2031 Primedia sr unsecur co gtd 8.875% /2011 Mail Well I st unsecur co gtd Ser144A priv plmt 9.625% /2012 Louisiana-Pacific unsecur sr subord nts 10.875% /2008 OwensIllinois unsecur sr nts 7.35% /ZOO8 Prime Hospitality sr subord nts Ser144A priv plmt 8.375% /2012 Young Broadcasting sr subord co gtd 10% /2011

2,040,000 1,895,000 1,755,000

1,740,000

1,780,000

1,745,000

1,660,000

1,530,000 1,610,000

1,500,000

3,050,000 4,100,000

1,430,000

1,431,373 1,422,000

1,680,000

1,525,000

2,050,000

EUR) 1,305,000

1,350,000

1,497,000

1,210,000

1,305,000

1,305,000 1,910,000 1,205,000

1,290,000

1,145,000

1,350,000

1,180,000

1,685,000 1,570,000

1,165,000

1,045,000 1,260,000

1,130,000

1,250,000

2,034,900 1,866,575 1,816,425

1,757,400

1,744,400

1,714,463

1,689,050

1,683,000 1,618,050

1,530,000

1,525,000 1,517,000

1,508,650

1,507,650 1,474,715

1,411,200

1.395.375

1,394,000

1.391.131

1,363,500

1,354,785

1,318,900

1,311,525

1,291,950 1,279,700 1,269,251

1,264,200

1,238,506

1,235,250

1,218,350

1,210,076 1,177,500

1,170,825

1,149,500 1,134,000

1,107,400

1,106,250

1.26 1.16 1.13

1.09

1 .08

1.06

1.05

1.04 1 .oo

0.95

0.94 0.94

0.93

0.93 0.91

0.87

0.86

0.86

0.86

0.84

0.84

0.82

0.81

0.80 0.79 0.79

0.78

0.77

0.77

0.75

0.75 0.73

0.73

0.71 0.70

0.69

0.69

US High Yield Bond Fund


Invesiment


unless Market I of net specified value assets

Corporate Bonds (continued) United States of America (continued) Six Flags sr nts Ser144A priv plmt 8.875% /2010 Centennial Communications secur sr subord 10.75%/2008 Mirant Americas Generation sr nts unsecur 8.3% n o 1 1 Nextel Communications unsecur sr nts 9.375%/2009 Anthem Insurance nts Ser144A priv plmt 9.125%/2010 D.R. Horton unsecur sr co gtd 8% /2009 Healthsouth nts Ser144A priv plmt 7.625% /2012 Flowserve unsecur sr subord co gtd 12.25%/2010 Riverwood International sr subord nts unsecur co gtd 10.875% /2008 HMH Properties co gtd SerA 7.875% /ZOO5 ISP Holdings secur Ser144A priv plmt 10.625% /2009 Case nts unsecur SerB 6.25% /2003 Lyondell Chemical secur sr subs gtd SerA 9.625%/2007 HCA debentures 7.5% :2023 Fairchild Semiconductor International unsecur sr subord nts 10.5% /2009 RCN unsecur sr disc nts step cpn 0% to 15/10/2002/ 11.125% to 15/10/2007 Nextel Communications sr disc nts step cpn 0% to 15/09/2002 / 10.65% to 15/09/2007 iStar Financial sr nts unsecur 8.75%/2008 Vintage Petroleum unsecur sr subord nts 8.625% /ZOO9 Equistar Chemicals / Equistar Funding sr unsecur co gtd 10.125%/2008 Phelps Dodge sr nts 8.75% /2011 Autonation unsecur sr nts co gtd 9% /2008 Globix unsecur sr nts 12.5%/2010 Tyco International Group sr unsecur co gtd 6.75% /2011 HCA sr unsecur nts 8.75%/2010 Omnicare unsecur sr subord co gtd SerB 8.125% /2011 PSEG Energy Holdings nts Ser144A priv plmt 8.625% /2008 Ucar Finance sr nts co gtd Ser144A priv plmt 10.25%/2012 Acetex unsecur sr nts 10.875% /ZOO9 Venetian Casino Resort Ser144A oriv olmt

I .

11%/2010 Health Net unsecur sr nts 8.375%/2011 MuzaWuzak Finance sr subord unsecur co Rtd 9.875% /2009 lntermet sr nts Ser144A priv plmt 9.75% /2009 Primus Telecommunication Group sr nts SerB 9.875% /2008 ISP Chemco unsecur sr subord co gtd SerB 10.25% /2011 Exodus Communications unsecur sr nts 11.625% /2010 Oura Operating sr nts Ser144A priv plmt 8.625% /2012 Pliant unsecur sr subord nts Ser144A priv plmt 13%/2010 Stone Energy unsecur sr subord nts 8.25% /2011

1,110.000

2,300,000

1,380,000

2,140,000

960,000 1,085,000

1.OR0.000

943.000

980.000 1.040.000

1,000,000 975,000

990,000 965,000

860,000

3,970,000

1.650.000 905.000

950,000

930,000 855,000

4,725,000

1,090,000 750,000

820,000

875,000

815,000 790,000

820,000 720,000

925,000 7 55,000

1,400,000

725,000

4,39U.000

720,000

685.000

715.000

a5o.000

1,104,450

1,104,000

1,104,000

1,086,050

1,084,912 1,079,575

1,069,869

1.065.590

1,019,200 1,014,000

990,000 951.682

945,450 935,988

915.900

91 3,100

a99.250

a93.000

897,081

888,150 882,035 875,500 850,500

846,461 846,347

844.600

839,803

831,300 825,550

825,125 800,495

758,500 756,888

756,000

739,500

724,350

723,600

719,250

715.000

0.68

0.68

0.68

0.67

0.67 0 67

0 66

0.66

0.63 0 63

0 61 0.59

0.59 0.58

0.57

0.57

0 56 0.56

0.55

0.55 0.55 0.54 0.53

0.52 0.52

0.57

0.52

0.51 0.51

0.51 0.50

0.47 0.47

0.47

0.46

0.45

0.45

0.45

0.44


unless Investment specified

. .- . - . .. . . .

Corporate Bonds (continued) United States of America (continued) A01 Time Warner nts 6.875% /2012 770,000 Park Place Entertainment unsecur sr subord nts 9.375% /2007 675,000 American Tower sr nts 9.375% /2009 1.280.000 Fisher Scientific International unsecur nts 7.125% /2005 700,000 Louisana-Pacific unsecur sr nts 8.875% 2010 625,000 Dynegy Holdings unsecur sr nts 6.875% /2011 975,000 Dobson/Sygnet Communications unsecur sr nts i m % / z o o a 1,115,000 Millennium America unsecur sr subord co gtd 9.25% /2008 650,000 Technical Olvmpic USA sr subord nts Serl44A priv plmt 10.375%/2012 Psinet unsecur sr nts SerB 10% /2005 Hanover Equipment Trust 2001 A sr nts secur Ser144A priv plmt 8.75% /2011 Echostar DES unsecur sr nts 9.375% /2009 Hanover Eqriipment Trust 2001 A secured sr nts Ser144A priv plmt 8.5% /2008 Stoneridge sr nts Ser144A priv plmt 11.5%/2012 Technical Olympic USA sr nts Ser144A priv plmt 9% /2010 HMH Properties sr secur nts co gtd SerB 7.875% /2008 CIT Group nts 5.625% /ZOO4 Metaldyne sf subord nts Ser144A priv plmt 11%/2012 Owens-Illinois sr unsecur debentures 7.8%/2018 Trimas sr subord nts Ser144A priv plmt 9.875%/2012 Lear unsecur co gtd SerB 8.1 1% /2009 Beazer Homes USA sr unsecur co gtd 8.625% /2011 XM Satellite Radio sr secur 14%/2010 ArvinMeritor unsecur sr nts 8.75% /2012 RCN unsecur sr disc nts SerB step cpn 0% to 15/02/2003 / 9.8% to 15/02/2008 Park Place Entertainment unsecur sr subord nts 8.875% /2008 Foamex-LP sr secured co gtd Ser144A priv plmt 10.75%/2009 Primus Telecommunication Group unsecur sr nts 12.75% /2009 Encompass Services unsecur sr subord co gtd 10.5% /2009 EL Paso unsecur nts Ser144A priv plmt 7 875%/2012 Dana nts SerEUR 9% /2011 Tekni-Plex sr subord nts Ser144A priv plmt 12.75%/2010 Williams Cos nts sr unsecur 7.75% /2031 Flextronics International unsecur sr subord nts 9.875%/2010 Johnsondiversey sr subord nts Ser144A priv plmt 9.625%/2012 NMHG Holding sr unsecur co gtd Ser144A priv plmt 10% /2009 Collins & Aiknian Products unsecur sr subord

665,000 6,765,000

685,000 675,000

675,000

615,000

630,000

635.000 625,000

615,000

700,000

550,000 535,000

510,000 1.100,000

480.000

2,480.000

450,000

440,000

790.000

7 15.000

390,000 IEUR) 375,000

350,000 485,000

325,000

305,000

300,000

co gtd 11.5%/2006 305,000 Schuler Homes sr unsecur co gtd 9.375%/2009 275,000 Magnum Hunter Resources sr nts Ser144A priv plmt 9.6% /2012 255,000

Market 96 of net value assets

. . .

710,132

705,375 704,000

694,750 680,535 672,750

669.000

663.000

661.675 651,131

626,775 624,375

624.375

621 .I 50

620,550

604,838 599.663

599,625

584,500

548,625 548,375

517,650 517.000 514,492

471,200

464,062

448,800

426,600

407,550

392,641 364,036

362,250 355,484

339,625

318,725

304,500

288,987 280,500

262.650

0.44

0.44 0.44

0.43 0.42 0.42

0.41

0.41

0.41 0.40

0.39 0.39

0.39

0.38

0.38

0.37 0.37

0.37

0.36

0.34 0.34

0.32 0.32 0.32

0.29

0.29

0.28

0.26

0.25

0.24 0.23

0.22 0.22

0.21

0.20

0.19

0.18 0.17

0.16

US High Yield Bond Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.


unless Market Investment specifled value

.. - .. Corporate Bonds (continued) United States of America (continued) Rhythms Netconnections unsecur sr nts SerB 14Y0/2010 Focal Communications unsecur sr nts SerB 11.875%/2010 WorldCom 8.25% /2031 Focal Communications unsecur sr disc nts SerB step cpn 0% to 15/02/2003 112.125% to 15/02/2008 Globalstar IP/Capital sr nts 11.375% /2004 Tekni-Plex unsecur sr subord co gtd SerB 12.75%/2010 Rhythms Netconnections unsecur sr disc nts SerB step cpn 0% to 15/05/2003 / 13.5% to 15/05/2008 Schuler Homes unsecur cn gtd 10.5% /201'1 WorldCom-WorldCom Group nts 7.5% 12011 Republic Technologies International secur co gtd 13.75%/2009 Pegasus Communications sr nts SerB 9.75% /2006 EL Paso unsecur sr nts 7% /2011 CIT Group nts 6.5% /2006 XO Communications unsecur sr nts 10.75%/2009 XO Communications sr disc nts step cpn 0% to 15/04/2003 / 9.45% to 15/04/2008 Global Crossing Holding sr unsecur co gtd 8.7%/2007 Metromedia Fiber Network unsecur sr nts 10% e 0 0 9 Globalstar LP sr nts 11.5% /2005 Global Crossing Holding sr unsecur co gtd 9.5%/2009 XO Communications sr disc nts step cpn 0% to 01/12/2004/ 12.125% to 01/12/2009 XO Communications unsecur sr nts 10.75%/2008 Adelphia Business Solutions sr disc nts SerB step cpn 13% /2003 WinStar Communications sr disc nts step cpn 0% to 15/04/2005/ 14.75% to 15/04/2010 27,680.000

4.5 10,000

1,483,000 1,525,000

3,250.000 3,065,000

175,000

4,525,000 150,000

1,010,000

2,205,000

285,000 130,000 125,000

3,000,000

3.71 5,000

5,550,000

4,655,000 350,000

1,800,000

1,000,000

525,000

4,305,000

248,050

237,280 228,750

227.500 183.900

181,125

181,000 160,500 151,500

143,325

128.250 124.41 3 121,197

75,000

55,725

55,500

46,550 21,000

18,000

15,000

13,125

5,381

2,768 .-

Total for Unlted States of America

Canada Pacifica Papers sr nts 10% /2009 1,740,000 1,848,750 Husky Oil FRB 8.9% /2008 (1) 1,710,000 1,828,681 Tembec lndwtrles sr unsecur co gtd 8.5%/2011 1,770,000 1,823,100 Norampac sr nts 9.5% 12008 1,540,000 1,640,100 Air Canada unsecur sr nts 10.25% /2011 1,975,000 1,545,437 Quebecor Media sr nts unsecur 11.125% /2011 570,000 561.450 Quebecor Media sr disc nts unsecur step cpn 0% to 15/07/2006/ 13.75% to 15/07/2011 500,000 292,500 GT Group Teleconl uiisecur sr disc nts step cpn 0% to 01/02/2005/ 13.25% to 01/02/2010 8,860,000 22,150

Total for Canada - - - .

United Kingdom British Sky Broadcasting sr unsecur co gtd 8 2% /2009 1,825,000 Huntsmarl International unsecur sr subord SerEUR 10 125%/2009 (EUR) 1,850,000

,794,004

,519,925

X of net assets

0.15

0.15 0.14

0.14 0.11

0.11

0 11 0.10 0.09

0.09

0.09 0.08 0.08

0.06

0.04

0.04

0.04 0.01

0.01

0.01

0.01

0.00

0.00 ~

68.74

1.15 1.13 1.13 1.02 0.96 0.35

0.17

0.01

5.92

1.11

0.94


unless Market 96 of net Investment specified value assets .- . .. .

Corporate Bonds (continued) United Kingdom (continued) Telewest Communications sr disc nts step cpn 0% to 15/04/2004 / 9.875% to 15/04/2009 NTL unsecur sr unsubord SerB step cpn 0% to 01/04/2003 / 10.75% to 01/04/2008 Huntsman IC1 Chemicals unsecur sr subord co gtd 10.125%/2009 British Sky Broadcasting co gtd 6.875% /2009 NTL Communications sr nts SerB 9.875% /2009 RSL Communications step cpn 0% to 15/03/2003 / 10% to 15/03/'2008 RSL Communications sr unsecur co gtd 9.875% /2009 RSL Communications unsecur co gtd 9.125%/2008 RSL Communications sr unsecur co gtd 12% /2008 RSL Communications co gtd step cpn 0% to 01/03/2003/ 10.125% to 01/03/2008 RSL Communications sr co gtd 12.25%/2006 Viatel sr disc nts step cpn 0% to 15/04/2003 / 12.5% to 15/04/2008 Dolphin Telecom unsecur sr disc nts step cpn 0% to 01/06/2003/ 11.625% to 01/06/2008 Dolphin Telecom unsecur sr disc nts SerB step cpn 0% to 15/05/2004 / 14% to 15/05/2009 Dolphin Telecom sr disc nts step cpn 0% to 01/06/2003 / 11.5% to 01/06/2008 Dolphin Telecom unsecur sr disc nts step cpn 0% to 01/06/2003/ 11.5% to 01/06/2008

(GBP) 3,000,000

(GBP) 3,400,000

525,000

500,000

(EUR) 1,000,000

(DEM) 4,425,000

2,750,000

2,400,000

1,665,000

2,000,000

1,305,000

5,025,000

(EUR) 1,525,000

6,000,000

50,000

1,225,000

Total for Unlted Klngdom

Mexico TV Azteca sr nts SerB 10.5% /2007 Satelites Mexicanos sr nts SerB 10.125% /2004 Pemex Project Funding Master Trust unsecur co gtd 9.125%/2010 Grupo lusacell sr nts 14.25% 12006 Maxcom Telecomunicaciones sr unsecur co gtd step cpn 0% to 01/03/2006 / 10% to 01/03/2007

Total for Mexico

Germany Fresenius Medical Care Capital Trust co gtd 7.875% /2008 Messer Griesheim Holding sr nts 10.375% /2011 Callahan Nordrhein-Westfalen unsecur sr nts SerS 14% /2010 Esprit Telecom sr nts 10.875% e 0 0 8 Esprit Telecom sr nts 11.5% 12007

Total for Germany

,512,606

,504,719

469,875

459,937

308,995

55,887

55,000

48.000

33,300

30,000

26,100

25,125

15,664

600

125

123

0.94

0.93

0.29

0.28

0.19

0.03

0.03

0.03

0.02

0.02

0.02

0.02

0.02

0.00

0.00

0.00

4.87

1,745,000 1,692,650 1.05

2,900,000 1,392,000 0.86

1,000,000 1,050,000 0.65 1,285,000 963,750 0.60

1,765,899 529,770 0 33

3.49 ~.

1,480,000 1,332,000 0.83

(EUR) 1,230,000 1,303,539 0.81

3,000,000 120,000 0 07 85.000 213 0 00

0 0 00

1.71 ._

(EUR) 800,000

. ___._._.__.___. .................. . . . . . . . . . . . . . . . . . . . . . . . .



Holdlngl Nominal in US dollars

unless lnveslment specified

... - .... . .

Corporate Bonds (continued) Poland PTC International Finance II sr subord co gtd SerEUR 11.25% /2009 PTC International Finance unsecur unsubord sr disc co gtd step cpn 0% to 01/07/2002 i 10.75% to 01/07/2007 360,000 Netia Holdings II co gtd SerB 13.5%/2009 (EUR) 1,865,000 Netia Holdings sr co gtd SerB 10.25%/2007 1,725,000

Total for Poland

(EURI 550,000

....

Australia Murrin Murrin Holdings Property s e w sr nts 9.37596 e 0 0 7 4,255,000

Market K of net value assets

574.473 0.36

369,792 0.23 313,319 0.19 276,000 0 11

0.95 .. - .. -.

1,148,850 0.71 . - - --

Total for Australla 0.71

Netherlands Unlted-Pan Europe Communication unsecur sr nts SerB’ 10.875% /ZOO9 3,905,000 507,650 0.31 Telel Europe sr nts SerEUR 13% /2009 (EUR) 2,800,000 331,991 0.21 Telel Europe unsecur sr nts 13% /2009 1,250,000 175,000 0.11 Telel Europe sr nts SerEUR 12.375%/2008 (EUR) 1,000,000 108.742 0.07 KPNQwest CV sr unsecur 10% /2012 (EUR) 490,000 5,430 0.00

. --- Total for Netherlands 0.70

Indonesia lndah Kiat Finance sr unsecur co gtd 10% /2007 4,100,000 1,045,500 0.65 Pindo Deli Finance sr co gtd 10.75% /ZOO7 170,000 39,100 0.02

... - .... . .. .... ...

Total for Indonesia 0.67

Spain ON0 Finance unsecur sr nts Ser$l4% /2011 2,250,000 765,000 0.47

Total for Spain 0.47 ..

Argentina CTI Holdings sr nts step cpn 0% to 15/04/2003/ 11.5% to 15/04/2008 4,365,000 174,600 0.11

0.11 Total for Argentina -_ . . . . ...

__ .... ..

Total for Corporate Bonds

Equities &Warrants United States of America TNP Enterprises Pfd Stock SerD PIK 14.5%/2011 1,939 Solectron CV unsecur nts 0% /2020 3,535,000 Mot i e n t 254.851 Broadwing Communications Pfd Stock SerB 12.5% /2009 2.439 Primedia Pid Stock SerF 9.2% /2009 5,255 Primedla Pfd Stock SerD 10% /2008 3,960 SW Acquisition Wts exp. 1/04/2011 3,230 Focal Communications 35,349 McLeodUSA Pfd Stock SerA 2.5% /2012 19,420 McLeodUSA Wts exp. 16/04/2007 43,033 TNP Enterprises PIK Ser144A priv plmt 14.5%/2011 1

88.34

1,919,610 1.18 1,626,100 1.01 1.157.023 0.72

365,850 0.23 157.650 0.10 118,800 0.07 96.900 0.06 82,363 0.05 7 2 , m 0.05 4,303 0.00

990 0.00

H o I d i n g / Nominal in US dollars

unless Market 56 of net Investment specified value assets

. -- ..

Equities & Warrants (continued) United States of America (continued) Paxson Communications Ser144A Wts exp. 30/06/2003 768 230 0.00 Republic Technology wts exp. 15/07/2009 2,205 221 0.00

exp. 15/02/2004 1,260 13 0.00 Viatel 3 0 0.00 Crown Castle International Pfd Stock PIK 12.75%/2010 0 29 0.00

Total tor United States of America 3.47

Globalstar Telecom Ser144A Wts

. . ~. -

Sweden Song Networks Holding ADR 52,619 9,471 0 01

Total for Sweden 0.01 -. -.

Canada GT Group Telecom Ser144A Wts exp. 1/02/2010 8,860 1.951 0 00


Mexico 0.00 Maxcom Telecom Ser144A Wts exp 1/04/2007 2,775 278

Total for Mexico 0.00

Total tor EquMes & Warrants 3.48

- .- -

-

Government Bonds

Republic of Brazil Brady C Ser2OYR 8%/2014 2,826,086 1,773,832 1 1 0

Total for Erazll 1.10

Brazil

.. -. -

Colombia Republic of Colombia unsubord 9 75% /2009 880,000 855,800 0.53

Total for Colombia 0.53 --

United States of America US Treasury Bill 0% 18/07/2002 (2) 200,000 199 834 0 13 US Treasury Bill 0% 17/10/2002 (2)



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

200,000 198 851 0 12 - -~

~ -_ . .-

93.70


Statement of investments (conti nu ed) Other transferable securities not admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment _ _ - Equities &Warrants United States of America Paxson Communications regd Pfd Stock PIK 13 25% /2006 Dobson Communications Pfd Stock PIK 13% /2009 Nextel Communications Pfd Stock sr unsecur PIK SerD 13% /2009 Paxson Communications CV Ffd Stock Ser144A priv plmt PIK 9 75% /ZOO6 lritermedia Communications Pfd Stock SerB PIK 13 5% /2009 XM Satellite Radio Wts exp 15/03/2010 Maxcom Telecom Pfd Stock Maxcorn Telecom XO Communications Pfd Stock PIK 14% /2009 Concentric Network Pfd Stock Sere PIK

Maxcom Telecom Pfd Stock Motient Wts exp 01/04/2008

13.5%/2010

Holding/ Nominal in US dollars

unless Market specified value

I ot net assets

145 1,144,710

2.056 966,320

2,025 567.000

34 254,634

480 19,186 2,200 12,100

365,052 3,651 283,050 2,830

57,471 1,149

2,985 299 17,446 174

1.175 1

0.71

0.60

0.35

0.16

0.01 0.01 0.00 0.00 0.00

0.00 0.00 0.00

- Total for United States ot America 1.84

Colombia OcLidente Rule 144A Wts exp 15/03/2004 21,220 2,122 0 00

0.00

1.84

- -- .

- Total for Colombia

Total for Equitles & Warrants

Corporate Bonds

prlv plmt 0% /2011 2,250 23 a oo Total for United Kingdom 0.00

United Kingdom ON0 Finance sr nts SerASCT

. .. - - -~

Germany Global Telesystems Group sr nts 11% 12008 (DEM) 3.500.000 0 0.00



.

... .. -. .. ._ - . ..

- -. . - -- .-

Total other transferable securibles not admitted to official exchange llstlng or dealt in on another regulated market 1.84 -. . . .. ._ - .

Total Investment SecurlUes 154,237,938 95.54

Total NAV 161,442,425 100.00 .. ... . .-

(11 Variable coupon rates are those quoted as of 30 June 2002. (2) Security held as collateral against bond futures positions by the broker.

Euro Liquidity Fund

Investment aims To provide liquidity and high current income, to the extent consistent with the preservation of capital, primarily by investing in high quality short-term transferable debt securities that are denominated in Euro, provided that, at the time of acquisition, their initial or residual maturity does not exceed 12 months.

Change in net asset value per share for the six months ended 30 June 2002

- - -

1 4 8 % 1.40% 1 0 5 % 158% 161% - - - - 2

Fund (net of expenses1 Class I shares



Fund (net of expenses) Class M shares

1 Month Euro LlBlD Index (expressed in Euro)

101% 0.95% 1.07% . 2 -

. . . -. _. _. . . .. - 1

0 IF Fund (net of expenses) Class IX shares


Fund (net of expenses) Class MX shares

1 Month Euro LlBlD Index (expressed in Euro) .. _.

1.61%

. ..

. ...


Investment

Commercial Paper Australia Wheat Breed 09/07/2002 Allianz Finance 17/07/2002 Abbey National 07/08/2002 Beta Finance 12/08/2002 Dorada 13/08/2002 Rheingold 20/08/2002 Rabobank 23/10/2002 Dexia 08/11/2002 Paccar 09/07/2002 Bavaria 18/07/2002 Banque et Caisse d Epargne de I'Etat 24/07/2002 Banca Populare Di Verona 29/07/2002 Bayerische Landesbank 08/11/2002 Compass 12/07/2002 Pennine 01/07/2002 Toyota Motor Credit 22/07/2002 Prudential 15/08/2002 Kommunekredit 08/08/2002 ABN Amro Bank 10/07/2002 Rolo Banca 19/07/2002 RWE 24/07/2002 WestLB 24/07/2002 Silver Tower 31/07/2002 BFCM 14/08/2002 BSCH Issuances 13/08/2002 Cantabric 13/09/2002 General Electric Capital Corporation 15/07/2002 Northern Rock 22/07/2002 Britannia Building Society 25/07/2002 Schlumberger 16/08/2002 Gas Natural 09/07/2002 Rheinman 15/07/2002 Electricite De Portugal 31/07/2002 KZ 12/08/2002 Caterpillar 15/07/2002 Generalitat Valenciana 25/07/2002 Sharp 25/07/2002 Exelsior 29/07/2002 Cadbury Schweppes 02/08/2002 Landwirtschaftliche Rentenbank 02/08/2002 Parkland Finance 12/08/2002 Endesa 13/08/2002 Depfa 14/08/2002 Parkland Finance 22/08/2002 Superior Funding 16/09/2002 Fortis Bank 24/09/2002

Nominal In Euro unless

specified .

10,000,000 10,000,000 10,000,000 10,000.000 10,000.000 10,000.000 10,000,000 10,000,000 9,500,000 9,500,000

9,500,000 9,500,000 9,500,000 9,250,000 9,000,000 9,000,000 9,000,000 8,800,000 8,500,000 7,500,000 7,500,000 7,500.000 7,500,000 7,500,000 7,000,000 7,000,000 6,500,000 6,500,000 6,500,000 6,500,000 6,000,000 6,000,000 5,500,000 5,500,000 5.000.000 5.000.000 5,000.000 5,000.000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000.000 5,000,000 5.000.000

Bills Securitization'l8/09/2002 5;OOO;OOO General Electric Capital Corporation 19/09/2002 5,000,000 Norddeutsche Bank 23/09/2002 Alliance & Leicester 14/11/2002 Superior Funding 02/07/2002 PPG Industries 05/07/2002 Volkswagen 15/08/2002 Bank of Scotland 04/11/2002 Emerson Henkel23/07/2002 Rathgar Capital 25/07/2002 Rheinman 15/08/2002 Arabella 11/07/2002 Caterpillar 26/07/2002 Merita Bank 08/11/2002 Arabella 15/07/2002 Exelsior 17/07/2002 Rathgar Capital 12/09/2002 Silver Tower 27/08/2002 WestLB 25/10/2002 Kommunekredit 20/09/2002 Sharp 09/07/2002

5,000,000 5,000,000 4,500,000 4,500.000 4,500,000 4,400,000 4,000,000 4,000,000 4,000,000 3,500,000 3,500,000 3,500,000 3,000,000 3,000,000 3.000,OOO 2,500,000 2,500,000 2,100,000 2,000,000

. ..

Amortised % of net cost assets

.. .

9,991,646 9,984,032 9,964,505 9,959,852 9.958.922 9,952,087 9,891,064 9,874,139 9,492,032 9,484,043

9,478.840 9,474.320 9,380,356 9,239.668 8,999,147 8,981.670 8,961,332 8,768,737 8,492,130 7,486,695 7,483,170 7,483,026 7,478.309 7,468,307 6,971,077 6,949,712 6,490,923 6,486,493 6,484.907 6,471,146 5,994,909 5,991,582 5,484,046 5,477,898 4,992,850 4,988,408 4,988,397 4,986,537 4,984,724 4,984,585 4.979.978 4,979,461 4,978,990 4,974,392 4,962,945 4,962,227 4,962,210 4,961,748 4.959.866 4,931,963 4,499,159 4,497,904 4,480,332 4,347,536 3,991,419 3,990,663 3,982,715 3,496,404 3,491,506 3,455,827 2,995,798 2,995,253 2,978,899 2,486.347 2.471.975 2,083,794 1,998,302

1.98 1.97 1.97 1.97 1.97 1.96 1 96 1.94 1.88 1.87

1.87 1.87 1.86 1.83 1.78 1.78 1.77 1.73 1 68 1.48 1.48 1.48 1.48 1.48 1.38 1.37 1.28 1.28 1.28 1.28 1.19 1.19 1.08 1.08 0.99 0.99 0.99 0.99 0.99 0.99 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.97 0.89 0.89 0.89 0.86 0.79 0.79 0.79 0.69 0.69 0.68 0.59 0.59 0.59 0.49 0.49 0.41 0.40

Euro Liquidity Fund State men t of invest men t s (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. A5 at 30 June 2002, expressed in Euro.

Investment

Nominal in Euro unless Amortised X of net

specified cost assets

Commercial Paper (continued) Electricite De Portugal 29:07/2002 2,000,000 1,994,546 0.39 Emerson Henkel 14/08/2002 2,000,000 1,991,321 0.39 PPG Industries 08/08/2002 1.500.000 1,494,472 0.30 Prudential 05/08/2002 1,000,000 996,597 0.20 Bank of Ireland 20/08/2002 1,000,000 995,416 0.20 Britannia Building Society 02/09/2002 100,000 99,389 0.02

Total for Commercial Paper 84.20

Short-Term Bank Notes & Interest Bearing Certificates Of Deposit HVB Estate Bank 4 250% 18/10/2002 8,000,000 8,021,514 1 58 Nationwide Building Society 4 185%

General Electric Capital Corporation 3 625% 06/12/2002 1,190,000 1,189,009 0 24

Total for Short-Term Bank Notes & Interest Bearing Certificates Of Deposit 2.81

17/09/2002 5,000,000 5,005,648 0 99

. ..

Government Bonds Austria Treasury Bill 19/08/2002 9,500,000 9,455,694 1 8 7



._

__ .

Total NAV 505,848,257 100.00

Sterling Liquidity Fund Investment aims To provide liquidity and high current income, to the extent consistent with the preservation of capital, primarily by investing in high quality short-term transferable debt securities that are denominated in Sterling, provided that at the time of acquisition, their initial or residual maturity does not exceed 12 months.


1.78% 1.68% 1.39% 1.87% 1.94%





1 Month GBP LlBlD Index (expressed in Sterling)

1.24% 7

1.38% 1.94%

Fund (net of expenses) Class IX shares


1% 1 Month GBP LlBlD Index (expressed in Sterling)

Statement of investments Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in Sterling.

Nominal in Sterling

sb of net Investment specified cost assets

unless Amortised

..

Commercial Paper ABN Amro Bank 17/07/2002 Rheingold 22/07/2002 Superior Funding 23/07/2002 CGNU 26/07/2002 BCL 21/10/2002 WestLB 04/11/2002 Rheinman 23/08/2002 BP Amoco 17/07/2002 General Electric Capital Corporation 29/07/2002 ENEL 29/07/2002 Banque et Caisse d'Epargne de I'Etat 15/07/2002 Societe GenCrale 17/07/2002 Volkswagen 23/07/2002 London Electricity 29/07/2002 AMP Bank 09/08/2002 Toyota Motor Credit 15/08/2002 General Electric Capital Corporation 16/08/2002 S e w n Trent 30/08/2002 Rabobank 02/09/2002 Rheinische Hypobank 16/09/2002 Depfa 18/09/2002 Toyota Motor Credit 23/09/2002 Norddeutsche Bank 15/10/2002 Spintab 10/07/2002 Links 12/07/2002 BSCH Issuances 15/07/2002 Caterpillar 16/07/2002 Beta Finance 22/07/2002 Reuters 22/07/2002 Prudential 23/07/2002 BG Transco 23/07/2002 AMP Bank 24/07/2002 Pennine 25/07/2002 EN1 31/07/2002 Five Finance 15/08/2002 Norddeutsche Bank 20/08/2002 Britannia Building Society 03/09/2002 Standard Life 10/09/2002 CGNU 20/09/2002 Silver Tower 06/01/2003

Total for Commercial Paper

2,000,000 2,000,000 2,000,000 2.000,000 2,000,000 2,000,000 1,570,000 1,500,000 1,500,000 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

500,000 500,000 500.000 500,000 500,000 500,000 500.000 500.000 500.000 500,000 500,000 500,000 500,000 500,000 500.000 500,000 500,000

1,996,421 1,395,335 1,995,124 1,994,461 1,974,638 1.970.663 1,560,713 1,497,310 1.495.392 1.495.333

998.415 998.211 997,530 996,888 995,691 994,932 994,813 993,328 992,898 991,317 991,075 990,568 987.985 499,453 499,343 499.165 499.127 498,823 498,819 498,734

498,681 498,610 498,298 497,493 497,182 496,402 495,997 495,439 488,621

498,719

3.22 3.22 3.22 3.22 3.18 3.18 2.52 2.42 2.42 2.41 161 1.61 1.61 1.61 1.61 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.59 0.81 0.81 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.79

Interest Bearing Certificates Of Deposit ING Group 4.070% 27/09/2002 1,500,000 Lloyds TSB Bank 4.020% 02/08/2002 1,000,000 Halifax 4.070% 27/08/2002 1,000,000 Halifax 4.050% 07/08/2002 500,000 ING Groep 4.42% 03/02/2003 500,000 Barclays Bank 4.400% 24/09/2002 500.000 BBV 4 030% 04/09/2002 500,000 Helaba International Finance 7.375% 30/12/2002 380,000

Total for Interest Bearing Certlflcates 01 Deposlt _._ .-

1,500,000 1,000,113 1,000,106

500,002 500,000 499,942 499,830 385.247

_

63.46

2.41 1.61 1.61 0.81 0.81 0.81 0.81 0.62

9.49

Government Bonds Kingdom of Belgium 4 120% 22/08/2002 1,000,000 994,068 1 60 Republic of Ireland4 00% 05/07/2002 700,000 699,619 1 1 3



Total NAV 62,020,671 100.00

. . -

-

US Dollar Liquidity Fund

Investment aims To provide liquidity and high current income, to the extent consistent with the preservation of capital, primarily by investing in high quality 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.

Change in nct asset value per share For the six months ended 30 June 2002

......... - ~ -

0 71% 0.54% 0 28% 080% 0 88% ....... 1 0





Salomon 3 Month US T-Bill Index (expressed in US dollars)

0 70% 0 52% 0 27% 0.79% 1 0

IEl Fund (net of expenses) Class IX shares


Fund (net of expenses) Class EX shares


Salomon 3 Month US T-Bill Index (expressed in US dollars)

. . .

0.88 X


Investment

Nomlnal in US dollars

unless Amortised % of net specified cost assets

Commercial Paper Goldman Sachs Group 03/07/2002 Wells h g 0 01/07/2002 New Center Asset Trust 02/07/2002 Abbey National North American 03/07/2002 UBS Finance (DEI 08/07/2002 American General 09/07/2002 FCAR Owners Trust 10/07/2002 FCAR Owners Trust 12/07/2002 Mortgage Interest Networking Trust Plus 22/07/2002 Chevron Texaco 24/07/2002 Delaware Funding 25/07/2002 CBA (DEI Finance 31/07/2002 Societe Generale North American 05/08/2002 Ciesco 07/08/2002 Glaxo SmithKline Finance 07/08/2002 KFW International Finance 12/08/2002 Asset Securitization Cooperation 19/08/2002 Canadian Imperial Holdings 09/09/2002 Schering 16/07/2002 American Honda Finance 23/07/2002 General Electric Capital 07/08/2002 New Center Asset Trust 09/10/2002 Mont Blanc Capital 26/08/2002 Citicorp 02/07/2002

50,000.000 30,000,000 30,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 20,000,000 20,000,000 20,000,000 20,000,000 15,000,000 10,000,000

49,992,500 4 89 29,998,533 2.93 29,996,767 2.93 24,996,354 2.45 24,990,m 2.45 24,989,000 2.45 24.987.639 2.45 24,985,250 2.45

24,972,194 2.45 24,970,833 2.45 24,968,924 2.45 24,961,681 2.45 24,955,750 2.45 24,953,556 2.45 24,953,292 2.45 24,946,847 2.45 24,938,135 2.44 24,911,743 2.44 19,984,444 1.96 19,977,511 1.96 19,959,044 1.96 19,897,316 1.95 14,957,250 1.47 9,999,011 0.98

Total for Commercial Paper

Federal Agency Discount Notes Federal Home Loan Mortgage 08/08/2002 Federal National Mortgage Association 30/10/2002 Federal Home Loan Mortgage 13/09/2002 Federal National Mortgage Association 18/09/2002 Federal Home Loan Mortgage 22/11/2002 Federal Home Loan Mortgage 11/12/2002 Federal National Mortgage Association 10/01/2003 Federal National Mortgage Association 07/02/2003

Total for Federal Agency Discount Notes . . . . . . . . . . . .....

45,000,000

25,000,000 20,000,000

15,000.000 15,000,000 15,000,000

15,000,000

15,000.000

44,913,956

24,835,639 19,918.750

14,929,000 14,887,020 14,832,584

14,820,954

14,790,949

57.76

4.40

2.43 1.95

1.47 1.46 1.45

1.46

1.45

Short-Term Bank Notes P Certificates of Deposit ToronteDominion Bank 1.810% 21/08/2002 25,000,000 Rabobank Nederland 1.930% 25/11/2002 25,000,000 State Street Bank &Trust 1.800% 28/08/2002 25,000,000

25,000,000 25,000,000 25,000,000

16.07

2.45 2.45 2.45

Total for Short-Term Bank Notes & CeKiflCateS of Deposit 7.35

Total Investment Securities a 2 a , m , m 81.18

Total NAV 1,020,160,747 100.00

Select Global Diversified (Euro) Fund Investment aims To seek long-term capital appreciation, measured in Euro, by investing in a globally diversified portfolio of equity and fixed income securities. The Fund may invest from 30% to 80% of the net assets in equities and convertible securities and from 20% to 70% of the net assets in fixed income securities, as market conditions dictate.

Change in net m e t value per sharp For the six months ended 30 June 2002

,__-

(2.49% (2.73)% (4.601% (9.63)%

4 . . . .

% -


Market % of net Investment H o I d I n g value assets

. . .. . . -

Equities & Warrants

United States of America Philip Morris Valero Energy Ford Motor Company Capital Trust II Pfd Stock 6.5% /2032 Merrill Lynch & Co. Hewlett-Packard Mattel Phillips Petroleum Bristol-Myers Squibb Motorola AT&T P h a r m a c i a Transocean Heinz (H.J.) The Gap AOL Time Warner McDonald's MeadWestvaco Lucent Technologies Pfd Stock Ser144A priv plmt 8% /2031 SBC Communications Schlumberger Lyondell Chemical Lincoln National Yahoo! Delta Air Lines

2,901 128.312 1.02 3,154 119,510 0.95

1.743 2,367 5,832 3,978 1,262 2,773 4,878 6.376 1,772 1,978 1,454 4,009 3,646 1,742 1,432

91 1,277

830 2,346

767 2,102 1,175

99,279 97.071 90,236 84,913 75,243 72,164 71,227 69,083 67,198 62,391 60,512 57,645 54,308 50,184 48,664

44.790 39.439 39:081 35,871 32,620 31,416 23.796

0.79 0.77 0.71 0.67 0.60 0.57 0.56 0.55 0.53 0.49 0.48 0.46 0.43 0.40 0.39

0.35 0.31 0.31 0.28 0.26 0.25 0 19 0 11

12.43 . .

Agere Systems A 10,717 15 193


- - . .. lo .- 0 Fund (net of expenses) Class I shares

Fund (net of expenses) Class A shares United Kingdom

Fund (net of expenses) Class B shares Shell Transport &Trading 17,190 131,333 1 04 Scottish Power 16,282 88,648 0 70 Pennon Group 7,393 79,932 0 63

(expressed in Euro) Marks & Spencer Group 13 691 78,767 0 62 -~ BT Group 18,341 71,337 0 56

HSBC Holdings 5 482 63,840 0 51 Kelda Group 9,640 63,533 0 50 lnvensys 44,121 60,608 0 48 Anglo American IGBP) 3,524 59,341 0 47 Cable &Wireless 21.788 56,244 0 45 RMC Group 5,394 54,656 0 43 Rio Tinto 2,430 45 120 0 36 Ptlkington 30,018 42,972 0 34 Legal &General Group 17,572 35 462 0 29

Total for United Klngdom 7.38

li 50% MSCl World (Net) Index/50% JPM Global Government (Traded) Index

..

Japan Mitsubishi Estate Takeda Chemical Industries Nippon Telegraph &Telephone Sony Toyota Motor Nikko Cordial Mitsubishi Tokyo Financial Group Sankyo

Total for Japan ~

20,000 2,520

21 1,400 2,800

13,000 8

3.000

165,585 111,982 87,464 75,341 75,223 66,445 54,609 41,312

1.31 0.89 0.69 0.60 0.60 0.53 0.43 0.33

5.38

Germany E ON 2,246 131,953 1.04 Celanese 4,431 104,616 0 83 Allianz Regd 193 39,459 0.32

Total for Germany 2.19 -. . . .

Select Global Diversified (Euro) Fund



Equities & Warrants (continued)

France TotalFinaElf ' B 656 107,846 0.85 Technip-Cotlexip 693 73,874 0 58 Alcatel 3.503 24,661 0.20

Total for France 1.63 _.

Canada Placer Dome 9,747 110,641 0.88 Barrick Gold 3,572 68,687 0.54 Ballard Power Systems 1,016 16,934 0.13

Total for Canada 1.55 . .

Greece Hellenic Telecommunications Organization 4,800 76,800 0 61

Total for Greece 0.61 _

Denmark Carlsberg ' 6 1,414 74,999 0.59

Total for Denmark 0.59 -. ._

South Africa Anglogold ADR 2,416 63,803 0.51

Total for South Africa 0.51 . ..

Netherlands Akzo Nobel 1,303 57,449 0.45

Total for Netherlands 0.45 -

Hong Kong Citic Pacific 25,822 56,653 0 45

.. . .

Total for Hong Kong 0.45

Switzerland Zurich Financial Services 221 45,186 0 36

Total for Swluerland 0.36 _.

Spain Altadis 2,087 43,618 0 35

..


Belgium Fortis 1,776 38,326 0.30

Total for Belgium 0.30 . . . . ... - .

Italy EN1 1 828 29,431 0.23


Total for Equities & Warrants 34.41

- .-

.-_.

Nominal in Euro unless Market ?4 of net

Investment specified value assets . ._ - -~ ..

Fixed Income Securities

Corporate Bonds

France GIE Suez Alliance unsecur sr unsubord 5 5% /2009 312,000 309,364 2 45 Schlumberger Industries co gtd 5 25%/2008 244,000 244,350 1 94 Alcatel nts SerEMTN 7% /2006 134,000 110,849 0 87

Total for France 5.26 . .. _ . ._

United States of America Sunamerica Institutional Funding secur SerEMTN 5 75% /2009 287,000 295,920 2.34 Ford Motor Credit unsubord 6.125%/2005 236,000 239,430 1 go Gap unsecur CV 5 75% 1'2009 47,000 54,638 0.43

Total for United States of America 4.67 .- -

United Kingdom British Telecommunications step cpn 6.125%/2006 300,000 307,110 2.43 Rio Tinto Finance unsecur unsubord co gtd SerEMTN 5.125%/2007 250,000 251,213 1.99


Germany Depfa Deutsche Pfandbriefbank secured SerGl 5 625% /2003 243,000 245,782 1.95

Total for Germany 1.95 . - -. . .. ..-.

Netherlands Royal KPN subord SerCl CV 3 5% /2005 136,000 113,762 0 90

. __ _ _- Total for Netherlands 0.90


Government Bonds

Supra-National European Investment Bank SerEARN 5 25% /ZOO4 610,000 6 2 3,2 3 7 4 94 International Bank for Reconstruction & Development nts 5% /2006 (US01 571,000 597,279 4 73

Total for Supra-Nalional 9.67 .

Germany Deutsche Bundesrepublik SerOO 5.25% /2010 591,000 605,066 4 79

Total for Germany 4.79 -.. . -

Belgium Kingdom of Belgium 4.75% /2006 243,000 245,114 1.94



Total for Fixed Income Securities 33.60

Total Investment Securltles 8,587,950 68.01

Total NAV 12,627,589 100.00

- -.

_ _

__ __ . . . ..

Select Global Diversified (USD) Fund Investment aims Statement of investments To seek long-term capital appreciation, measured in US Dollars, by investing in a globally diversified portfolio of equity and fixed income securities. The Fund may invest from 30% to 80% of the net assets in equities and convertible securities and from 20% to 70% of the net assets in fixed income securities as market conditions dictate. .


Market 96 of net Holding value assets

. . . . .

Equities &Warrants Change in net asset value per share For the six months ended 30 June 2002 United States of America

Ford Motor Cnmoanv Caoital Trust I1 Pfd -

(1.32)% 0.5 . . . .. ..... ..

(1.561%

0

.0.5

-1.0

-1 5

-2.0

, ... . . . . . . .

Stock 6.5% /2032

Hewlett-Packard 0.24% Philip Morris .

2,097 11 7,956 1.41 1,940 84,739 1.01 5,211 79.624 0.95

. ... .. . . .. . . . .. ........ . .


Mattel 3,191 Phillips Petroleum 1,027 Transocean 1,829 AT&T 5,169 Motorola 3,827 Pharmacia 1,445 Heinz (H.J.) 1,297 Valero Energy 1.334 AOL Time Warner 3,295 Lucent Technologies Pfd Stock Ser144A priw plmt 8% /2031 88 McDonald's 1,501 MeadWestvaco 1,261 BristoLMyers Squibb 1,619 The Gap 2,891 Merrill Lynch & Co. 89 1 SBC Communications 1,116 Schlumberger 703 Lyondell Chemical ss 2,003 Lincoln National 652 Yahoo' 1.752 Delta Air Lines 1,024 Agere Systems 'A' 8,487

Total for United States of America -. . - .. .

Fund (net of expenses) Class A shares United Kingdom Marks & Spencer Group BT Group Shell Transport &Trading Scottish Power Kelda Group Pennon Group lnvensys Anglo American (GBP) Rio Tinto Cable &Wireless HSBC Holdings RMC Group Pilkington Legal & General Group


L? 50% MSCl World (Net) lndex/50% JPM Global Government (Traded) Index (expressed in US dollars)

- .. ._

. . _

Japan Mitsubishi Estate Takeda Chemical Industries Nippon Telegraph &Telephone Toyota Motor Sony Nikko Cordial Sankyo Mitsubishi Tokyo Financial Group

Total for Japan _.

67,266 60,470 56,973 55,308 55.185 54,115 53,307 49,918 48,469

42,774 42,703 42,319 41,608 41,052 36.086 34.038 32,690 30,245

25,860 20,480 11.882

27,384

. .

12,768 72,543 18,172 69,801 8,826 66,593

11,858 63,758 9,522 61,974 5,638 60,199

43,586 59,128 3,548 59,002

21,585 55,027 4.684 53,868 5,111 51,144

24,929 35,243 14,379 28,657

3,154 57.834

-.

17,000 2,074

21 2,700 1,300

12,000 3,000

6

138,995 91,017 86,376 71,634 69,089 60,571 40,798 40,447

0.80 0.72 0.68 0 66 0 66 0.65 0.64 0.60 0.58

0.51 0.51 0.51 0.50 0.49 0.43 0.41 0.39 0.36 0.33 0.31 0.24 0.15

14.50

0.87 0.83 0.80 0.76 0.74 0.72 0.71 0.71 0.69 0.66 0.64 0.61 0.42 0.34

9.50 .

1.66 1.09 1.03 0.86 0.83 0.72 0.49 0.48

7.16

Germany

E ON 1,273 73,858 0.88 Allianz Regd 168 33,920 0.41


Celanese 3,180 74,146 o a9

.. ... .. __

Select Global Diversified (USD) Fund




Market % of net value assets Investment Holding Investment

Equities & Warrants (continued) Fixed Income Securities

Corporate Bonds Canada Placer Dome 6,764 Barrick Gold 3,156 Ballard Power Systems 791

Total for Canada - ...

75,824 0 90 60,502 0 72 13,020 0 16

1.78

United States of America Amoco unsecur co gtd 6% /2008 212,000 223,252 2.67 Sunamerica Institutional Funding secur SerEMTN 5.75%/2009 189,000 192,449 2.30 Wal-Mart Stores sr nts 5.45% /ZOO6 183,000 190,416 2.28 Ford Motor Credit nts 6.875%/2006 185,000 189,070 2.26 Gap unsecur CV 5.75% /2009 42,000 48,218 0.58

France TotalFinaElf 'E' Technip-Coflexip Alcatel

523 293

2,841

84,911 1.01 30,845 0.37 19,752 0.24 Total for United States ol Amerlca 10.09

- - - - . Total for France 1.62 United Kingdom

British Telecommunications nts step cpn 7 875% 12005 173,000 155,311 2.22 Diageo Capital unsecur co gtd 6.625% /2004 141,000 149,965 1 79

Belgium Fortis 4,097 87,313 1.04

Total for Belglum 1.04 . . . . . .

Total for Unlted Kingdom 4.01

Denmark Carlsberg 'B' 1,319 69.090 0 83

Total for Denmark 0.83 - . -. . -- ~. .

Netherlands Royal KPN subord Ser4 1 CV 3 5%/2005 156,000 128,868 1 54

--. - - - . .......


France Alcatel nts SerEMTN 7% /2006 115,000 93,948 1.12

South Africa Anglogold ADR 2,158 56,281 0.67

Total for South Africa 0.67 ... .-


Total for Corporate Bonds 16.76 Greece Hcllenic Telecommunications Organization 3.445 54,434 0.65

Total for Greece 0.65 ...... .......

Government Bonds

Hong Kong Citic Pacific 22,213 48,128 0 58

Total for Hong Kong 0.58 -- - .......

Supra-National European Investment Bank SerEARN 5.25% /2004 IEUR) 291,000 293,615 3.51 International Bank for Reconstruction & Development nts 5% /ZOO6 187,000 193,172 2.31 European Investment Bank nts SerEMTN 4.75% /2003 133,000 136,591 1.63

Total for Supra-National 7.45 ..

Netherlands Akzo Nobel 1,040 45,283 0 54

. _. ... - _- Total for Netherlands 0.54

Spain Altadis 1,874 38,679 0 46

Total for Spaln 0.46 _ - ~. -

Germany Deutsche Bundesrepublik SerOO 5.25% /2010 (EUR) 203,000 205,245 2.45


Swnzerland Zurich Financial Services 174 35,133 0 42

Total for Switzerland 0.42 . . . .

Canada Government of Canada 6% /ZOO5 (CAD) 285,000 195,728 2.34


Italy EN1 1,560 24,804 0.30


Total for Equities & Warrants 42.23

. .- -.

.... -

New Zealand Government of New Zealand Serl106 8% /ZOO6 (NZD) 316,000 162,422 1.94

Total for New Zealand 1.94 ... -- . . . . . . . . . . . . . . . . . . . . . ~ ......

United Stater of America US Treasury Note 3.25%/2003 150,000 151,828 1.82

1.82

16.00


Total for Government Bonds - - .

Select Global Diversified (USD) Fund Statement of investments (continued) Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 30 June 2002, expressed in US dollars.

Investment


unless Market % of net spectfled value assets


Australia Queensland Treasury govt gtd SerO5

IAUDI 202.000 115,505 1.38 6.5% /2005



Total for Fixed Income Securities 34.14


. .. .. . ... .

...... -. . . ... .

. . . .- .

.. .

~ .- .. . . . . .

Total NAV 8,364,032 1w.w

Open futures contracts

Unrealized galn/(loss)

Fund Maturity Date Number of ConIxacts Notlonal commltments As at 30 June 2002

Euro Corporate Bond Fund Euro - BOBL Future September 2002 45 60,300 US 5yr T-note Future September 2002 16) (9,880) US lOyr T-note future September 2002 (12) (24,793) US Long Bond Future September 2002 (11) (18,200)

Total for Euro Corporate Bond Fund EUR 1,674,676" EUR 7,427

* Cash EUR 247,883 held as collateral

....... . ...................... -. ~ ....

. . . . .

Euro Strategic Bond Fund LIF Long Gilt Future US lOyr T-note Future US T Bond Future

September 2002 September 2002 September 2002

(72,007) (154,962)

(64.526)

Total for Euro Strategic Bond Fund (EUR 18.107,945)'* (EUR 291.495)

* ' Cash EUR 1,228,984 held as collateral

Global Bond Fund EUX Euro Bond Future September 2002 (109) (113,085) LIF Long Gilt Future September 2002 (6) 117,286) TSE lOyr JGB September 2002 16 131,654

Total for Global Bond Fund USD 5,966,802**' USD 1.283

* + * Cash USD 1,921,280 held as collateral.

____

US Bond Fund US 2yr T.note Future September 2002 20 45,781 US 5yr T-note future September 2002 690 1,143,232 US lOyr T-note Future September 2002 (4) 1359)

Total for US Bond Fund USD 77.891,218*'*' USD 1,188.654

* * * * 100,000 US Treasury Bill 18/07/2002 830,000 US Treasury Bill 17/10/2002

US High Yield Bond Fund US T Bond Future September 2002 (24) (45,448) US lOyr T-note Future September 2002 (20) (8,041)

Total for US High Yield Bond Fund (USD 4,611,708)""' (US0 53.489) .................

200,000 US Treasury Bill 18/07/2002 200,000 US Treasury Bill 17/10/2002. Cash USD 56,507 held as collateral.

.*... ..*.. f . f..

The accompanying notes are an integral part of these financial statements

Statement of assets and liabilities As at 30 June 2002

Asian EquW Fund

.. ....

USD ....

Assets Investments securities - at cost 146,134,123 Unrealized appreciation / (depreciation) 2,866,748

Asian Property

Fund . . . .

USD

30.01 1,541 (504,545)

Competitive Edge

'Best Ideas" Fund

........

USD

82,977,497 (10,205,863)

Emerging Europe

Fund

EUR

31,328,497 (1,624,472)

Investment securities at market value 149.000.871 29,506,996 72,771.634 29,704,025

Unrealized gain on open futures contracts Unrealized gain on open forward foreign exchange contracts Cash at banks Time deposits Receivables for investments sold Receivables for subscriptions Accrued income and prepaid expenses

Total assets

Emerging Europe Markets ex UK

Equity Property Fund Fund ...... . ._ ..........

USD EUR .

274,604,753 119,382.377 (6,581,246) 3,959,213

268,023,507 123,341,590 .......... __ ....

European Combined Equity totals of all

Fund funds +

EUR USD

...

345,996,152 11,718,985,572 (43,585,020) (756,954,399)

302.41 1,132 10,962,031,173 - . . . .

1,197,272

3,208,671 1,233,857 1,269,621 1,848,898 7,571,174 2.199.1 70 919,713 8,029,828 224,903,392

15,462.81 3 - 3,316,574 - 728,357,767 2,342,768 1,231,367 538,392 230,605 4,522,252 2,756,021 60,678 422,386,775

11,627,846 85,001 21,503 113,115 15,342,111 9,975 4,131,401 488,622,575 293,381 122,383 79,059 252,486 1,136,691 49,568 211.438 92,477,964

179,961.536 32,215,368 75,259,486 37,871.405 294,540,305 127,076,867 314.844.477 12,923.185.589 ......

Liabilities Unrealized loss on open futures contracts Unrealized loss on open forward foreign exchange contracts Bank overdrafts Distribution payable Payables for investments purchased 10,294,901 Payables for redemptions 4,289,672 Other payables and accrued expenses 211,523

Total liabilties 14,796.096 .... -. . . . . . . . . . . . .....

Net asset value 165.165.440

50,024 2,060,327 21 4,198

56,826 163,334

2,167,177 377,532

30,048,141 74.881.954

..... -_ ...

341,357

6,797,529 4,970,279

79,710 1,787,178 2,099,713 - 556.357.888

18,928 5,979,300 273,004 3,576,052 441,514,164 98,752 522,121 131,301 459,884 22,602,716

1,904,858 8,601,134 404,305 4,035,936 1,032,663,643

35,966,547 285,939,171 126,672,562 310,808,541 11,890,521.946

. .....

~ .......... -. .. ....

+ Represents the combined totals of all Morgan Stanley SlCAV Furids


Statement of assets and liabilities (continued) As at 30 June 2002

European European European Equity Growth European Small Cap European Global

Growth Opportunities pmperty Value Value Equity Brands Fund Fund Fund Fund Fund Fund

EUR EUR EUR EUR EUR USD

. .

.............. . . . .

Assets Investments securities - at cost 522,491.702 5,370,633 139,412,264 63,870,829 779,194,124 289,301.656 Unrealized appreciation / (depreciation) (74,831.260) 1602,236) 2.849.5 16 (4,185.01 0) (64,954,426) 23,108,7 13

. . . . . . . . . . . . . . . ......... -

Investment securities at market value 447,660,442 4,768,397 142,261,780 59,685,819

Unrealized gain on open futures contracts Unrealized gain on open forward foreign exchange contracts 40,914 Cash at banks 19,786.993 - 3,187,359 Time deposits Receivables for investments sold 128,942 120,968 4,954,188 Receivables for subscriptions 15,461.068 309,560 460,775 395,184 Accrued income and prepaid expenses 440,600 97,340 453,135 154,658

714,239,698

59,150,148

9,625,853 21,666,708

1,085,833

Total assets 483.518.959

Liabilities Unrealized loss on open futures contracts Unrealized loss on open forward foreiEn exchange contracts Bank overdrafts Distribution payable Payables for investments purchased Payables for redemptions 11,039,223 Other payables and accrued expenses 698.220

5,296,265 148,129,878 63,423,020

4,002 1,773,165

106,257 68,075 32,565 2,486,028 310,221 39,132 223,526 124,373

805,768,240

7,929.430 34,720,976

1,103,499

312,410,369

3,845,577 3,333,143 2,193,158

34,268,093 564.649

356,614,989 - . __.. _ _

2,499,777

6,376,601 10,367,131

392,203

Global Small Cap Combined

Value totals of all Fund funds +

US0 USD

69,633,068 11,718,985,572 (1,007,213) (756,954,399)

68,625,855 10,962,031,173

1,197,272

3,208,671 188.1 51 224,903,392

3.183.975 728,357,767 575,498 422,386,775 710,997 488,622,575 167,028 92.477.964

73.451.504 12,923,185,589

341,357

6,797,529 4,370,279

79,710 1,762,776 556,357,888

163,018 441,514.164 145,651 22.602.716

.. - .......

Total liabilities 11,737,443 181,956 4,482,719 502,669 43,753,905 19,635,712 2,071,445 1,032,663,643

Net asset value 471,781,516 5,114,309 143,647,159 62,920,351 762,014,335 336,979,277 71.380.059 11,890,521,946 . . ._ . . ..... ...... ......... ........ . ...... -.

+ Represents the combined totals of all Morgan Stanley SlCAV Funds

The accompanying notes are an integral part of these financial statements.


Japanese Latin Global Global Growth Japanese American us

Technology Value Equity Opportunities Value Equity W l t y Equity Fund Fund Fund Fund Fund Fund

. -. . ..-. . - . . .. - .... . . . . . .

... " " ." ............................. """" "" ........... ........................... ...............

....

USD USD JPY JPY USD .. ._ .. ~ . . . . . . . . . . . . . . . .

Assets Investments securities - at cost 66,650,346 1.280.235.097 3,249,461,552 53,197,319,719 176,929,448 Unrealized appreciation j (depreciation) (28,679.391) (7,910,414) (291,315,6521 (10,495,959,2191 (24,430,468)

~ -. . -. ..

Investment securities at market value


Total assets

Liabilities Unrealized loss on open futures contracts Unrealized loss on open forward toreign exchange contracts Bank overdrafts Distribution payable Payables for investments purchased Payables for redemptions Other payables and accrued expenses

. . . . . . . . . ._

37,970,955 1,272,324,683

- 69,300,474 2,004,326 11,067,934

292,883 1,207,667 823,416 68,213,965

22,241 2,273,731

41,113,821 1,424,388,454

- 2,401,154 3,362

478,800 30,822,091 1,549.716 34,974,240

112,824 1,643,438

2,958,145,900 42,701,360,500

35,351,689 910,863,545

60,989.160 50,288,426 406,912,220 3,841,767 4,892,479

3,108,616,942 44,024,028,744 ____ ._ .

6,473,905 81,462,991 913,126,265 11,577,143 69,656,056

152,498,980

51,732 7,860,865 5,298,446 2,135,559

914,938

USD .. -. ..

26,944,434 (3,453,667)

23,490,767

349,496 104,816 494,819 45,041

_ _ ..

168,760,520 24,484.939

20,706

6,027,809 84,268 2,899,278 80,120

267.719 78.746

us Equity Combined

Growth totals of all Fund funds +

USD USD

1,023,539,647 11,718,985,572 (1 40,112,17 1) (756,954,399)

883,427,476 10,962,031,173

1,197.272

3,208,671

46,632,945 728,357,767 22,868,360 422,386,775

580,687 92,477,964

973.125.709 12,923,185,589

. . . .

- 224,903,392

19,616,241 4 a 8 m . 5 7 5

.- .- ..... - ..

341,357

6,797,529 31,882 4,970,279

79,710 33,300.769 556,357,888 13,268,505 441,514,164 1,330,930 22,602,716

_ _ _ __ - - Total liabilities 2,144,702 69,840,923 99,514,039 982,782,321 9,194,806 263,840 47,932,086 1,032,663.643

Net asset value 38.969.119 1.354.547.531 3.009.102.903 43.041.246.423 159.565,714 24,221,099 925,193,623 11,890,521,946 ...... . _ ._ .

+ Represents the combined totals of all Morgan Stanley SICAV Funds



us us us Emerging Growth and US Small Cap Small Cap World Markets Euro Combined

Income Property Growth Value Equity Debt Bond total8 of a11 Fund Fund Fund Fund Fund Fund Fund funds +

USD USD US0 USD USD USD EUR USD

. . . . . . . .~ ... _ ............ ..... ...........

Assets Investments securities. at cost 460,084,337 177,435,117 117,640,899 84,309,428 269,475,721 266,899,233 629,312.760 11,718,385,572 Unrealized appreciation / (depreciation) 112,858,2671 13,828,889 (66,1781 11,236,847) 118,606,344) (11,416,947) 3,399,200 (756,954,399)

Investment securities at market value 447,226,070 191,264,006 117,574,721 83,072,581 250,869,377 255,482,286 632,711,960 10,962,031,173

Unrealized gain on open futures contracts 1,197,272 Unrealized gain on open forward foreign exchange contracts 3,208,671 Cash at banks 24,349 23,481 73,060 261,638 507,624 224,903,392 Time deposits 19,303,225 4,822,191 2,830,010 9,477,642 6,518,609 12,878,441 38,089,494 728,357,767

Receivables for subscriptions 20,861,259 971,987 594,473 804,600 21,361,194 1,330,916 14,874,804 488,622,575 Accrued income and prepaid expenses 523,688 947,502 16,231 51,338 367,052 5,150,202 21,565,685 92,477,964

.. . .. __ ~ -. ......... ~ ~_ . . . . . . . . . . . . . . . . . .

Receivables for investments sold - 1,031,843 12,377,020 5.515.116 13,554,304 14.529.281 197,980,190 422,386,775

Total assets

Liabilities Unrealized loss on open futures contracts Unrealized loss on open forward foreign exchdnge contracts Bank overdrafts Distribution payable Payables for investments purchased Payables for redemptions Other payable5 and accrued expenses

487,938,591 199,061,010

4,066,662 1,664,977 7,421,325 262,439

603.2 15 1,444.275

133,392,455 98,994,337 292,932,174 289,371,126

1,144,305 7.688 17,228

5,354,629 12,754,875 17,056,541 5,257,667 8,253,014 561,602 24,734,446 7,646,926

227.735 156,602 512,696 803,219

905,729,757 12,923,185,589

341.357

6,797,529 4,970,279

79,710

214,865,086 441,514,164 6.770,779 22,602,716

. 556,357,888

Total llabllltles 12,091,202 3,371.691 13,843.066 13,473,079 43,447,988 13,725,040 221,635,865 1,032,663,643

Net asset value 475,847,389 195,689,319 119,549389 85,521.258 249.484.186 275.646.086 684,093,892 11,890,521,946

+ Represents the combined totals of all Morgan Stanley SlCAV Funds.

The accompanying notes are an integral part of these financlal statements.


EUtU Euro European Corporate Slrategic High Yield

Bond Bond Bond Fund Fund Fund

.

EUR EUR EUR __ .

Assets Investments securities - at cost 63,734,105 239,872,124 186,162,523 Unrealized appreciation / (depreciation) (1,316,763) (5,042,121) (125363.168)

Investment securities at market value 62,417.342 234,830,003 60,793,355 .. - ... _-_ - ...... . . .

Global Short Maturky US High Combined Bond EuroBond US Bond Yield Bond totals of all Fund Fund Fund Fund funds +

USD EUR USD USD USD ..... .-

318,115,292 1,096,952,643 255,734,405 301,336,387 11,718,985,572 13,617.488 515,707 1,638,196 (147,098,449) (756,954,3991

331,732,780 1,097,468,350 257,372,601 154,237,938 10,962,031,173 . ......


7,427

172,097 371,435

4,848,683 208,500

1,207,227 1,470,512

1,283

707,601 2,233,717 17,286 1,273,300 - 30,662,050

176,857 1,962,624 145,017 6,191.238 110,317 973,087 6,170.191 2,337,665 6,898,111

2,802,233 - 11,614,497

Total assets

Liabilities Unrealized loss on open futures contracts Unrealized loss on open forward foreiEn exchange contracts Bank overdrafts Distribution payable Payables for investments purchased Payables for redemptions Other payables and accrued expenses

Total liabilities ... -. .......

70,703,223 252,151,423 67,443,678 382,044.111

291,495

1,173,809

1,509,201 130,070 10,218,947 2,388,192 149,224 307,181 172,831

279,294 10,817,623 5,244,033

Net asset value 70,423,929 241,333,800 62,199,645


1,188,654 1,197,272

3,208,671 648,922 224,903,392

64,329,956 183,266,782 5,180,441 728,357,767 - 117,740,864 318,637 422,386,775

213,598,001 8.812.630 199,244 488,622,575 30,665,566 2,433,009 4,106,639 92.477.964

1,406,061,873 570,814,540 164.691.821 12,423,185,589 .. -

53,489 341,357

215,026 1.762.806

1 709,893 193,747,355 213,528,795 1 581,684 15,594,660 12,855,202

361,240 1,091,977 365,138

3,652,817 210,649,018 228,511,941

378,391,294 1,195,412,855 342302.599

-.

..

725,569 6,797,529 4,970,279

79,710 401,475 556,357,888

1,854,280 441,514,164 214,583 22,602,716

3,249.396 1,032,663,643

161,442,425 11,890,521,946



Euro Sterllng US Dollar Liquidity Liquidity Liquidity

Fund Fund Fund . . . . . . . ... ~ ..

EUR GBP USD ................. .... .- . . . . ~. . . . . .

Assets Investments securities - at cost 449,597,442 46,936,874 828,172,764 Unrealized appreciation / (depreciation)

Select Global Dlversitled

EumI Fund

. -

EUR _-_ -.. -

9,357,090 (769,140)

USD . .

6,561,845 1 (1 74,1701

Combined totals of all

funds +

USD

. .

11,718,985,572 (756 954,399)

Investment securities at market value 449,597,442 46,936,874 828,172,764 8,587,950 6,387,675 10,962,031,173


Total assets . . . . ... - . . . __

1,197,272

77,267 3.208.671 396 3,919,360 1,963,553 224,903,392

55,500.486 14,986,536 192,900,000 - 728,357.767

501,851 - 488,622.575 728,571 121,614 410,088 151,335 100,645 92,477,964

- 422,386,775

506,328,350 62,045,420 1,021,482,852 12,735,912 8,451,873 12,923,185,589

Liabilities Unrealized loss on open futures contracts Unrealized loss on open forward foreign exchanEe contracts Bank overdrafts Distribution payable 150 89 79,426 Payables for investments purchased 533,112 52,894 Payables for redemptions 205,690 1.226 20,000 Other payables and accrued expenses 274,253 23,434 709,567 35,429

Total liabilities 480,093 24,749 1,322,105 108.323

Net asset value 505,848,257 62,020,671 1,020,160,747 12,627,589

......... .... _.

.... __ - _.

+ Represents the combined totals 01 all Morgan Stanley SlCAV Funds.

341.357

26,724 6.797.529 4,970,279

79,710 30,460 556,357.888

- 441,514,164 30.657 22,602,716

87.841 1,032,663,643

8,364,032 11,890,521,946 __ - -


. ._

Statement of changes in number of shares For the six months ended 30 June 2002

Competitive Emerging Asian Asian Edge Emerging Markets EquW Property "Best Ideas" Europe Equity Fund Fund Fund Fund Fund

USD USD USD EUR USD

Shares at the start of the period 6,474,576 2,824 487 1,497,532 248 477 8,517,276 Number of shares issued 1,844,258 77 895 1,429 168,845 6,250,195 Number of shares redeemed (1,774 239) (76,260) (624,008) (231.187) (5,338,353

Shares at the end of the period 6,544,595 2,826,122 874,953 186,135 9,429,118

Net asset value per share class I 15.76 7.10 6.30 16.97 11.41

. . . -

- _ .... __.

_ _

Europe ex UK European

Properry W W Fund Fund

EUR EUR

4,497,107 10,417,433 163.712 3,924,774 (51,766) (5,293,071)

~ .~

4,609,053 9,049,136

27.22 7.22 ...

Shares at the start of the period 2,619,904 1,271,458 8,998,803 1,765,039 14,133,737 5,218 30,305,802 Number of shares issued 11,663,205 570,203 494,475 228.769 8,826,277 98,014 13,516,415 Number of shares redeemed (10,732,116) (488,466) (1,732,315) (118,310) (8,166,692) ( 6 5 ~ 77) (10,496.1 761

Shares at the end of the period 3,550,993 1,353,195 7,760,963 1.875.498 14,793,322 38,055 33,326,041

Net asset value per share class A 15.29 6.90 6.20 16.81 11.06 27.18 7.13

Shares at the start of the period 614,255 26,479 3.634.981 30,648 1,009,208 285 7,621,547 Number of shares issued 111.926 72,551 140,987 56,775 5,454,869 6,884 602,416 Number of shares redeemed (195,601) (3,494) (259,219) (10.531) (5,068,235) (453) (7,111,7081

Shares at the end of the period 530.580 95,536 3,516,749 76,892 1395.842 6.716 1,112,255

. . . . . . .........

....... ..

... ... ..- . . . . ..........

...... ....

Net asset value per share class B 14.53 6.74 6.04 16.68 10.59 27.02 7.00

Shares at the start of the period Number of shares issued Number of shares redeemed

Shares at the end of the period

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

....... . . . . . . - --

.... . -. .. .

..... ..... ..

. . . . . . .- . .

- . . . . . . . . . . - ~ ..... . .

... ......

. -. ~ ._ ....

_- . .

. . . . . . . . . . . . ._ . .

- .... ...... . - . . . .


...

Statement of changes in number of shares (continued) For the six months ended 30 June 2002


European Equity

Growth Fund

European Growth European

Opportunities Property Fund Fund

EUR

6,737,798 4,823.660

(3.892.184)

EUR EUR

4,348 3,901,521 18.562 1,637,634

- (1,527,865)

. .

Shares at the end of the period 7,669,274 22,910 4,011,290

Net asset value per share class I 10.17 16.39 14.68 __ ~~

European Global Small Cap European Global Small Cap

Value Value Eqully Brands Value Fund Fund Fund Fund

. . - ~

EUR EUR USD USD .

445,381 6,109,273 1628,297 443,784 1,242,133 4,128,144 4,774,932 256,485 (491,710) (3,527 783) (870.761) (163 181)

1,195,804 6,709,634 5,532,468 537.088 ..

26.33 25.80 31.98 18.62

Shares at the start of the period 33,328,141 163,142 4.355.363 47,192 19,110,477 725,015 2,267.899 Number of shares issued 29,834,904 232,977 3,161,635 1,169,359 20,790,813 5,427,601 1,561,515 Number of shares redeemed (27,659,734) (145,3591 (2,070,797) (34,160) (17,810.075) (1,961,487) (1,007,185)

Shares at the end of the period 35,503.311 250,760 5,446,201 1,182,391 22,091.215 4.191.129 2,822,229


Shares at the start of the period 3,194,782 31,726 386,306 40 1,164,886 189,183 520,149 Number of shares issued 7,004,112 11,691 216,587 15,805 654,030 878,470 111,517 Number of shares redeemed (6,232,294) (1.727) (89,481) (427) (282,152) (194,874) (36.992)

Shares at the end of the period 3,966,600 41,690 513,412 15,418 1,536,764 872,779 594,674






Shares at the erid of the period




Net asset value per share class EX



. . . . . .

.- ..... .. -. -. . . _. - _. .

... ~ .. ....

.- .- . . . . . .............

. . . . ~~ .. - . -. . .....

__ .................... ....... . . . _.

-~ . ....... .-

... ..... . . . . . _. .............

~~ ....


Shares at the start of the period Number uf shares issued Number of shares redeemed

Shares at the erid of the period


-. ......

..... .......... ~ ....... ~ __



Japanese Latin us Global Global GKWth Japanese American us Equity

Technology Value Equity Oppomnltles Value Equity EWlty Equity Growth Fund Fund Fund Fund Fund Fund Fund

USD USD JPY JPY USD US0 USD

Shares at the start of the period 2.085.293 13.807.766 361,918 11,823,401 10,922.610 717,279 9,860,342 Number of shares issued 329,108 3,138,919 126,989 5,003,631 953,480 200,880 3,708,518 Number of shares redeemed (1,344,784) (2,520,466) (2,981) (6,328,3941 (2,877,592) (628.735) (9,266,017)

Shares at the end of the period 1,069,617 14,426,219 485,926 10,498,638 8,998,498 289,424 4,302,843

........ ...

...... ..... ....... ~ ....

Net asset value per share class I 2.36 33.26 699.12 848.78 12.18 20.82 25.57


11,637,501 21,327,072 1,598,959 32,296,948 5,134,688 681,826 22,911,095 6,168,395 12,760,819 3,874,709 46,159,290 1,255,367 686.551 18,376,585

(4,821,498) (8,314,569) (2,667,501) (43,034,854) (2,490,553) (494,562) (9,777,727)

Shares at the end of the period 12,984,398 25,773,322 2,806,167 35,421,384 3,899,502 873,815 31,509,953


Shares at the start of the period 2,482,234 1,092,998 52a.789 8,674,397 322,334 40 1,782,205 Number of shares issued 757.193 2,293,630 702.880 657,736 66,849 3,261 258,211 Number of shares redeemed (512,902) (1,971,736) (161.688) (2,920,972) (37,507) (372) (636,935)

Shares at the end of the period 2,726,525 1,414,892 1,069,981 6,411,161 351,676 2.929 1,403,481


.. ~ ~

.- ............ ._ . . . __ ._ . . .

. . . . - . . _. . ....... ~_ . . . . . . . . .




Shares at the start of the period Number of shares issued Number at shares redeemed




. ...... . . . ..... .- ............

.._. . . . . . . . . . . . . . . .- .. - ......

. . ..... ._ - . . . . . . . . __









. .. ._ . . . . . . . . . . . . . . . . . . . . . . . . . . .... _ .

. . . . . . . . . . . . . . . .

- .- . . . . . .



us us us Emerging Growth and US Small Cap Small Cap World Mark et s Euro

income Proper& Growth Value W l t y Debt Bond Fund Fund Fund Fund Fund Fund Fund

USD US0 US0 US0 US0 USD EUR

Shares at the start of the period 3,122,578 7,455,989 1,390,018 328,954 2,769,222 4,353,796 18,164,274 Number of shares issued 4,451,157 644,999 280,561 857,609 4,307,609 2,586,733 3,972,522 Number of shares redeemed (1,318,3361 (1.350.197) (557.8311 (363.028) (2,240,599) (3,398,560) (6,381 174)

__ ~- -

Shares at the end of the period 6,255,399 6,750,791 1,112,748 823,535 4,836,232 3,541,969 15,755,622

Net asset value per share class I 16.22 22.38 27.00 22.02 18.07 28.74 8.98

Shares at the start of the period 13,422,319 1,262,575 2,802,076 1,619,723 10,066,969 3,748,413 28,597,515 Number of shares issued 161 56,132 1,187,255 1,398,304 1.564.772 6.91 1.415 3,598,951 44,249,077 Number of shares redeemed (7,131,3311 (596.2901 (1,306,334) (335.233) (8,004,056) (1,370,242) (25.169.662)

Shares at the end of the period 22,447,120 1,853.540 2,894,046 2,849,262 8,974,328 5,977,122 47,676,930


Shares at the start of the period 969,176 138.121 536.229 299.561 65,293 664,188 52,500,960 Number of shares issued 759.252 86,869 62,130 54,616 103,960 218,060 2,062,382 Number of shares redeemed (324.802) (21.470) (47.659) (26,449) (79.490) (598,198) (39,802,295)

Shares at the end of the period 1,403,626 203,520 550,700 327,728 89,763 284,050 14,761,047



Shares at the end of the perlod

Net asset value pur share class IX



Net assut value pur sham class AX

Shares at the start of the period Number of shares Issued Number of shares redeemed









......

. .....

-. . .... . . . . . . - . . . .

... ...................

-. .....

- .

. .. . . ._

..... . . . . . . ... ....... . - ... -. - ................... - .

..

..... . . . . . . . . . . .... . _-__ ~

.... . .-. -. _ _

. .... ~ -. . . . . . .

...... . . . . .

. __ . ............. .- - . . .

. - ..... .... ..


. . . .


.



Net asset value per share class I ~ . . . . .- . . . . .

Euro Euro European Corporate Sbategic High Yield Global Short Maturity US High

Bond Bond Bond Bond EumBond US Bond Yield Bond Fund Fund Fund Fund Fund Fund Fund

EUR EUR EUR US0 EUR USD USD

870.434 572.717 3,214,357 3.199.330 377,288 6,063,775 6.859.491 1,094,662 348,429 255,435 943,796 15,099,714 2,663,587 475,635 (197,222) (123.787) (1,490,754) (203,235) (984,481) (2,380,922) (1,096,238)

1,767.874 797,359 1,979,038 3,939,891 14,492,521 6,346,440 6,238,888

24.98 24.29 8.44 21.61 15.69 18.38 16.22

. ~ ___-

. ...

. .

. . . ........... __ - ~ ...

Shares at the start of the period 112,811 10,909,454 7,096,543 8,083,362 9,549,507 11,806,960 5,013,391 Number of shares issued 987,128 4,992,905 709,736 8,456,059 42,359,429 27,586.588 2.370.1 72 Number of shares redeemed (82,330) (7,222,094) (3,212,048) (3,065,950) (12216.678) 127,754,448) (4,116.961)

Shares at the end of the period 1,017,609 8,680,265 4,594,236 13,473,471 39,692,258 11,639,100 3,266,602


Shares at the start of the period 17,843 858,834 1,052,667 452,998 27,653,243 1,310,579 488,669 Number of shares issued 22,110 100,332 40,767 73.460 16,714,624 373,216 51,648 Number of shares redeemed (1,168) (258,755) (149.323) (110.395) (20,003,228) (708,541) (74,023)

Shares at the end of the period 38,785 700,41 I 944,111 416,063 24.364.639 975,254 466,294


Shares at the start of the period 12,822 Number of shares issued 16,151 Number of shares redeemed (5,093)

Shares at the end of the period 23,880

Net asset value per share class IX 13.39

Shares at the start of the period 26,037 Number of shares issued 25,148 Number of shares redeemed (22,908)


Net asset value per share class AX 12.54

Shares at the start of the period 80,925 Number of shares issued 46,904 Number of shares redeemed (62.368)


Net asset value per share class BX 12.16







.... . . .- _ ....

.. . . . . . ..........

.... ... . . . ......

. ....... ._ . .

. . . . . . - . . . . . . . -_ ....

.- .- .

........ . . . . ~ ..... .........

....... __ ..... ._ . . . .

_.- ........... .. _ ...... . . . . . ...... ..

.

. ._ . ..... . . . ~. .. . . . . . . . . . . . .

...... .......... .... - .........

... . - ........

. . . . . . - ...... _ _



Select Global Select Global Euro Sterling US Dollar Diversified Diversified

Fund Fund Fund Fund Fund

EUR GBP USD EUR US0

Shares at the start of the period 19,066,821 3,482 10,132,579 104,446 40 Number of shares issued 21,266,554 52,541 3,402,220 386.752 126,000 Number of shares redeemed (1 7.691.6021 (7,375) (3,801,766) (7,016)

Shares at the end of the period 22,641,773 48,648 9,733,033 484,182 126,040

Net asset value per share class I 11.00 10.31 11.38 24.33 24.67

Shares at the start of the period 14,146.144 4,584 1,689,404 40 40 Number of shares issued 11,391,444 329 1,750,633 33,062 213,478 Number of shares redeemed (10,126,601) (1,265) (1,866,644)

Shares at the end of the period 15,410,987 3,648 1,573,393 33,102 213,518

Net asset value per share class A 10.90 10.30 11.22 24.26 24.61

Shares at the start of the period 428,695 250 270,166 Number of shares issued 834,814 638,233 1,949 92 Niimber of shares redeemed (234.912) (345.885) (92)

Shares at the end of the period 1,028,597 250 562,514 1.949

Net asset value per share class B 10.63 10.24 10.91 23.85

Shares at the start of the period 20,342 - 102,845.088 Number of shares issued 338,149 7,563 144,287,634

Liquidity Liquidity Liquidity (EuW (USW

.... -. . . . . . .

........................

......... ........... .. .. -.

.................. .- ...

...................

.........

- ........... . . . . . . . . . ........

-. ... . . . . . . . . . .... ~

Number of shares redeemed - (159,532,086) . . . . . . . _~

Shares at the end of the period 358,491 7,563 87,600,636 .

Net asset value per share class IX 1.00 10.00 1.00


252,033 13,579 (3.938)

845,783.157 31 7,294,729

(390,723,201)

Shares at the end of the period 261,674 . 772.354.685 .......... . ....... .- . . . ........... . . . . . . . . . . -

Net asset value per share class AX 1.00 1.00

Shares at the start of the period - 11,099,841 Number of shares issued - 173,034,019 Number of shares redeemed - (182,215,7591

.. ..... ...... .. _ .............. ~- - . . . . . .

Shares at the end of the period 1,918,101

1.00 . . . . --



93 2.058.153 89 14,800,889 3,935,687 7,934,011 (7,781,515) (48,760) (5,852,386)

-- . . . . . . . .

Shares at the end of the period 7,019,467 5945.080 2,081,714



11.01 10.33 11.39

1,004 1,103 1,003 16 21 8


Net asset value per share class MX ~ ..... .... .. -

1,020

1.00 ....... .- .

1,124 1,011

10.00 1.00 ...


I ......

Statement of operations and changes in net assets For the six months ended 30 June 2002

Competitive Emerglng Europe Aslan Aslan Edge Emerging Markets exUK European

Equity Property "Best Ideas" Europe Equity Property Equity Fund Fund Fund Fund Fund Fund Fund

. . . . . . . . . ~~ . . .

USD USD USD EUR US0 EUR EUR .... - . . . . . . .

Income Dividends (net of withholding taxes) 1,675,940 466,499 550,671 403,906 3,272,506 3,181,742 4,529,723 Interest on bonds Bank interest 21,768 40,561 59,221 21,266 59,327 Income from securities lending 26,609 58,740 156,918 229,025

..... . . . . __ . _ Total income

Expenses Investment advisory fees Custodian fees Administration fees Professional fees Taxe d'abonnement Printing and publication fees Bank interest Transaction fees -Class I - Class A -Class B -Class IX . Class AX -Class EX Tax charges (excluding Taxe d'abonnement) Other fees

Total expenses

Less' expenses fee waiver

Net investment income/(loss)

Net realized gain/(loss) on sales of investments Net realized gain/(loss) on financial futures contracts Net realized gain/(loss) on foreign exchange transactions

Net realized profit/(loss) for the period

Net change in unrealized appreciation/ (depreciation) on investments Net change in unrealized appreciation/ (depreciation) on financial futures contracts Net change in unrealized appreciation/ (depreciation) on foreign exchange transactions

......

. . . . . _ .. - .....


funds +

USD ..

64,217,162 91,057,004

5,837,699 1,956,541

..........

1,724,317 466,499 591,232 403.906 3,390,467 3,359,926 4,818,075 163,068,406

702,104 80,019 91,036

7,918 44,494 69,693

120,432 41,933 30.520 50.285

3.612

1,242,046 . . . . . .

135.761 4,854

27,339 5,012 7,465

57,190 4,603 8.555 7.737 7,436 1,155

3,612

270,719 ...

509,934 5,863

118,085 347

27,715 57,917

2,007 2,556

41,139 131,693

3,653

311.903 23,022 30,993 4,461

10,371 61,620

4,653 18,369

1,780 26,112

6,391

3,975

2,061,772 133,721 269,830

11,349 74,599 74.889

125,481 47,751

122,590 70,133

6,763 3,612

451,154 23.740 48,197

6,513 35,434 75.776

12,815 47,089

1,127 287

4,212

1,927,724 60.031 70,333 26,699

11 5,068 106,494

81,488 29,316

179,285 227,063

3,975

49,539,668 1,109,048 6,532,469

747,470 2,745,126 3,273,636

274,163 1,055,559 1,224,867 3,928,874 6,684,085

23,361 203,689

3,160 116.999 201,123

900,909 503.650 3.002.490 706.344 2.827,476 77.663.297

188 2.435 12,348 849,751

482,271 195,968 (309,677) (97,309) 400,325 2,653,582 1,990,599 86,254,860

6,054,110 255,050 (10,243,273) 680,310 495,448 2,685,127 (4,999,296) (1 75,013,4581

1,073,264

(42.470) 731 (223,794) (412,145) (1,725,076) (128.691) (6,868) 8,578,169

6,493,911 451,749 (10,776,744) 170,856 (829,303) 5,210,018 (3,015,565) (79,107,165) . .

3,823,187 606,252 3,244,738 (4,694,852) 10,612.378 11,654,402 (44,596,540) (310,099,514)

428,537

1,433,511 (385,783) .- __ ........... ... ._

Net change in net assets as a result of operations 10,317,098 1,058,001 (7,532,006) (4.523.996) 11,216,586 16,864,420 (47,612,105) (389,163.925)

Dividend distribution - (5,287.601) Proceeds received on subscription of shares 216,582,665 4,979,151 4,216,697 9,145,330 237,081,104 7,193,871 142,189,343 8,420,908,094 Net amount paid on redemption of shares (203,928,119) (3.915.018) (17,269,3531 (7,136,926) (216,553,217) (3,272,749) (180,692,436) (6,878,270,220)

Net change in net assets as a result of capital transactions 12,654,546 1,064,133 (13,052,656) 2,008.404 20,527,887 3,921,122 138,503,093) 1,542,637,874

_. _ ._ __ . ~ - _ .

Total Increase/(decrease) In net assets 22,971,644 2,122,134 (20.584.662) (2,515,592) 31,744,473 20,785,542 (86,115,198) 1,148,186,348

Net assets at beginning of period 142,193,796 27,926,057 95,466,616 38,482,139 254.194.698 105,887,020 396.923.739 10,253.984.173

Translation difference 488,351,425

Net assets at end of period 165,165,440 30,048,191 74,881,954 35,966,547 285,939,171 126,672,562 310,808,541 11,890,521,946 .- - _ _ . . .



Statement of operations and changes in net assets (continued) For the six months ended 30 June 2002

European European European Global Equity GrOWth European Small Cap European Global Small Cap Combined

Value Value Equity Brands Value totals of all Fund Fund Fund Fund Fund Fund Fund funds +

EUR EUR EUR EUR EUR USD USD USD

Growth Opportunities Property

. _- ..

~ . . ...... .... . ..

Income Dividends (net of withholding taxes) 5,165,686 61,205 2,917,625 570,829 12,073,909 2,389,312 568,894 64,217,162

Bank interest 214,853 1,187 38,265 2,263 223,541 57,657 25,883 5.837.699 Income from securities lending 197,544 61,916 452.969 1,956,541

Interest on bonds - 91,057,004

Total Income

Expenses Investment advisory fees Custodian fees Administration fees Professional fees Taxe d'abonnement Printing and publication fees Bank interest Transaction fees -Class I -Class A -Class B -Class IX - Class AX -Class BX Tax charges (excluding Taxe d'abonnement) Othcr fees

5.578.083

2,877,969 78,479

388,935 21,920

159,588 111,787

69,280 31,107

283,271 207,703

3,974

62.392

35,836 1,378

13,471 3,993 1,502

58,621

26,635 31

3,170 3.826

3,017,806

668,065 17,820

116,985 3,453

34,638 66,088

16,033 24.516 48,188 33,736

3,974

573,092

161.298 4,279

21,027 9,432 9,755

58.388

70,248 7,771 7,088

399

5,536

12,750.419

4,148,064 112,433 547,000

47,371 203,334 155,989

97,463 78.282

383,023 204,554

3,974

Total expenses

Less: expenses fee waiver


Net realized gain/(loss) on sales of investments Net realized gain/(loss) on financial futiires contracts Net realized gain/(loss) on foreign exchange transactions

4,234,013

1,344,070

(12,734,888)

1141,085)

148,463

88,214

2,143

(321.6551

(1 7,150)

1,033,496

1.984.310

4,176,793

(6,705)

355.221

180,323

398.194

498.449

(2,141)

5,981.487

6,768,932

1,803,441

(145,002) ...... ....

Net realized profit/(loss) for the period (11,531.903) (336,662) 6,154,398 894.502 8,427,371

Net change in unrealized appreciation/ (depreciation) on investments (70,504,3921 (337.421) 6,089.575 (4,718,597) (68,779,4011 Net change in unrealized appreciation/ (depreciation) on financial futures contracts Net change in unrealized appreciation/ (depreciation) on foreign exchange transactions 236,966 (462,498)

Net change in net assets as a result of operations (81,794,329) (674,083) 12,243,973 (3,824,095) (60,814,528)

Dividend distribution Proceeds received on subscription of shares 465,711,956 4,789,067 73,910,078 68,380,730 691,374,908 Net amount paid on redemption of shares (421,261,7971 (2,653,257) (53,765,473) (14,509,2451 (584,149,8971

2,446,969

977,025 19,301

138,066 18,210 69,615 80,365

16,798 36,751 62,705

101,149

3,652

1.523.637

2,969

926,301

- .

1,767,168

202,063

594,777 163,068,406

420,800 49,539,668 5,892 1,109,048

81,259 6,532,469 6,861 747,470

21,177 2,745,126 61,479 3,273,636

274,163 94,771 1,055,559

3,579 1,224,867 32,224 3,928,874 52,987 6,684,085

23,361 203,689

3,160 116,999

3,611 201,123

784,640 77,663,297

70,880 849.751

(118,983) 86,254,860

.-

853.406 (175,013,458)

1,073,264

(147.652) 8.578,169

2.895.532 586,771 (79.107.165) - .

21,252,854 1,347,059 (310,099,514)

428.537

(2,435,785) (385,783)

21,712.601 1,933,830 (389,163,925) ..

- (5.287.601) 341,693,015 35,059,232 8,420,908.094 (96,051,363) (21,561,711) (6,878,270,220)

Net change in net assets as a result of capital transactions 44,450,159 2,135,810 20,144,605 53,871,485 107,225.011 245.641.652 13,497,521 1,542,637.874

Total increase/(decreare) in net assets (37,349.170) 1,461,727 32,388,578 50,047,390 46,410.483 267,354.253 15,431,351 1,148.186.348

Net assets at beginning of period 509,130,686 3,652,582 111,258,581 12,872,961 715,603,652 69.625.024 55,948,708 10,253,964,173

___ ... ~ .~ ....

Translation difference . 488.351.425 . . -. .... .. ~ ..... ... ..............

Net assets at end of period 471,781,516 5,114,309 143,647,159 62,920,351 762,014.335 336.979.277 71,380,059 11,890,521.946




Japan e s e Latin Global Global Growth Japanese American

Technology Value Equity Opportunities Value Equity Equity Fund Fund Fund Fund Fund

us us Equity

Equity GrOWm Fund Fund


funds +

US0 USD JPY JPY USD USD USD USD

Income Dividends (net of withholding taxes) Interest on bonds Bank interest Income from securities lending

27.890 11,727,625 6,529,904 191,292,080 3.674.603

14,317 532,247 2,999 288,910

2,567,847 60,082 13,361,195 52.508

121,772 2,920,991

7,371 350,443 10,772

64,217,162 91,057,004

5,837,699 1,956,541

Total Income 45,206 12,548,782 6,529,904 207,221,122 3,787,193

Expenses Investment advisory fees Custodian fees Administration fees Professional fees Taxe d'abonnement Printing and publication fees Bank interest Transaction fees -Class I -Class A -Class B . Class IX -Class AX -Class BX Tax charges (excluding Taxe d'abonnement) Other fees

Total expenses ..... ... .... .....

365,707 1,914

88,225 3,325

16,340 58,235

5,072 1,754

29,458 47.688

3,652

621.370 ... ..

6,412,367 101,502 610,465 66,269

279,674 206,796

28,899 181,225 537,255 217,403

3,856

17,097,238 179,293

5,955,334 608.523 576,279

6,853,490 223,133

4,243,198 136,289

1,240,580 3,110,501

472,151

240,237,806 3,213,106

34,577,231 4,371,977

11,965,167 7,458,510

3,932,235 3,557,239

20,088,718 37,972,408

466,592

1,233,570 49,044

144,874 23,030 60,925 67,760

18,409 56,223 49,722 24,320

3,613

129,143 3,282,206

132,116 6,121

22.307 3,530

10,013 55,055

17,292 3.668

12,482 160

6,817

5,344,856 35,274

578,714 8,581

274,625 135,188

17,843 100,255 526,135 247.793

3,610

163,068,406

49,539,668 1,109,048 6,532,469

747,470 2,745,126 3,273,636

274,163 1,055,559 1.224.867 3,928,874 6,684,085

23,361 203,689

3,160 116,999 201,123

8.645.711 40.696.009 367.840.989 1,731,490 269,561 7,272,874 77,663,297

Less: expenses fee waiver 11.763 - 11,096,133 71,692 849,751

Net investment income/(loss) (564,401) 3,903,071 (23,069,972) (160,619,867) 2,055,703 (68.726) (3,990,668) 86.254.860

Net realized gain/(loss) on sales of investments Net realized gain/(loss) on financial futures contracts Net realized gainAloss1 on foreign exchange transactions

(15,236,898) 95,443 (70,742,385) (1,213,311,022) (18,291,030) (1,951,755) (58,871,583) (175,013,458)

1,073,264

591 8,965,945 (10,037,286) 5,215,508 (2,552,185) 81,474 334.057 8,578,169 . . . - . . . .

Net reallzed proflt/(loss) for the perlod (15,800,708) 12,964,459 (103,849.643) (1,368,715,381) (18,787.512) (1,939,007) (62,528,194) (79.107.165)

Net change in unrealized appreciation/ (depreciation) on investments (9,044,322) (6,275,368) 72,079,778 660,969,053 (7,766,443) (3.245.903) (136,761,765) (310,099,514) Net change in unrealized appreciation/ (depreciation) on financial futures contracts 428,537 Net change in unrealized appreciation/ (depreciation) on foreign exchange transactions - (2,401,154) 2,193,199 (385,783)

Net change in net assets as a result of operations (24,845,030) 4,287,937 131,769,865) 1707,746,328) (24.360.756) (5.184.910) (149,289,959) (389.163.925)

- (5,287,601) Dividend distribution Proceeds received on subscription of shares 22,655,624 594,647,950 3,307,534,334 43,887,447,368 31,474,952 21,005,704 626,921,918 8.420.908.094 Net amount paid on redemption of shares (20,745,794) (416,176,909) (2,000,816,817) (44,065,847,517) (73,488,739) (26.287.866) (555,348,333) (6,878,270,220)

Net change in net assets as a result of capital transactions 1,909,830 178,471,041 1,306,717,517 (178.400.149) (42,013,787) (5,282,162) 71,573,585 1,542,637,874

Total increase/(decrease) in net assets (22,935,200) 182,758,978 1,274,947,652 (866,146,477) (66,374.543) (10,467,072) (127,715,374) 1,148,186,348

Net assets at beginning of period 61,904,319 1,171,788,553 1.734.155.251 43,927,392,400 225,940,257 34,688,171 1,052,909,997 10,253,984,173

- 488351.425 Translation difference

Net assets a t end of period 38,969,119 1,354,547,531 3,009,102,903 43,041,246,423 159,565,714 24.221.099 925,193,623 11,890,521,946

....................... . . .

............... ........... ~ . . . . . . . .

_ ..........

. . .. ......

+ Represents the combined totals of all Morgan Stanley SICAV Funds



us us us Growth and US Small Cap Small Cap

Income Properly Growth Value Fund Fund Fund Fund

World

Fund Equity

Emerging Markets Euro Combined

Debt Bond totals of all Fund Fund funds +

USD USD USD USD USD USD EUR USD . . . ~

Income Dividends (net of withholding taxes) 3,042,123 2,907,775 86,983 302,038 Interest on bonds Bank interest 168.698 43,798 35,717 liicome from securities lending 5,416 3,821 23,736 10,403

Total income 3,216.237 2,911,596 154,517 348,158 -. . . . . .

2,219,282

5,379 56.358

- 64,217,162 10.437.642 20,387,804 91,057,004

109,181 495,443 5,837,699 61,550 101,216 1,956,541

2.281.019

1,355,333 21.189

221,925 50,853 78.601 88.781

52,408 32,028

125,296 10.077

10,608,373 20,984,463 163,068.406

2,027,708 12,318

225,872 30,623

114,352 104,774

3,783 26,977

211,900 92.447

783,100 2,299

120,657 26,072 46,838 72.926

932,546 5.252

132,956 8,079

44,850 69.424

507,695 2,356

55,444 1,786

21,316 57,464

1,596,906 24.133

235,316 10,224 78,595 79.825

3,097,937 79,920

378,729 82,373

275,272 170,083

49,539,668 1.109.048

Expenses Investment advisory fees Custodian fees Administration fees Professional fees Taxe d'abonnement Printing and publication fees Bank interest Transaction tees -Class I -Class A -Class B -Class IX -Class AX -Class EX Tax charges (excluding Taxe d'abonnement) Other tees

Total expenses . . . . . . . .

615321469 747,470

2,745,126 3,273,636

274,163 1.055.559 1,224,867 3,928,874 6,684,085

23,361 203,689

3,160 116,999 201,123

245,779 5,735 17,234

15,310 66,533 85,330

33,932 7,299

38,316 39,725

8,811 52,742 96,888 70,908

1,122 59,499 61,045

25.126 19.768

212,839 2,340,427

110,236 3,661 3,610 3,611 3,611 3,653 3,610 3,935

2,854,364 1,523,242 1,381,125 768,944 2,040.144 2,257,958 6,702,136 77,663,297

Less: expenses lee waiver 3,210 849,751

Net investment income/(loss) 361,873 1,388,354 (1,223,398) (420,786) 240.875 8,350,415 14,282,327 86,254,860

Net realized gain/(loss) on sales of investments (2,989,788) 15,194,937 (9.515.226) (1,651,905) (18,095,002) 5,936,998 (1,539,117) (175,013,458) Net realized gain/(loss) on financial futures contracts 1,073,264 Net realired gain/(loss) on foreign exchange transactions 66,003 1,173 (162,788) 187 (730,510) 25,857 (24.419) 8,578,169

Net realized pmtlt/(loss) for the perlod (2.561.912) 16.584.464 (10,901,412) (2,072,504) (18,584,637) 14,313.270 12,718,791 (79,107,155)

Net change in unrealized appreciation/ (862.234) (310,099,514) (depreciation) on investments (20,172,409) 946,947 (5,812,908) (3,716,749) (9,104,391) (14,695,997)

Net change in unrealized appreciation/ (depreciation) on financial futures contracts 428,537 Net change in unrealized appreciation/ (depreciation) on foreign exchange transactions - (1,044,065) (385,783)

Net change in nut assets as a result of operations (22.734.321) 17,531,411 (16.714.320) (5,789,253) (28,733,093) (382,727) 11,856,557 (389,163,925)

. . . . . . ._

. . . . . . . . . . . . . . .

Dividend distribution - (5,287.601) Proceeds received on subscription of shares 356,416,711 40,885,096 49,866,760 56,898,901 216,609,359 189,384,677 435,491,086 8,420,908,094 Net amount paid on redemption of shares (144,845,0421 (42,553,900) (53,783,616) (16,634,893) (195,316,684) (158,474,358) (608,455,3271 (6,878,270,2201

Net change in net assets as a result of capital transactions 211,571,669 (1,668,804) (3,916,856) 40,264,008 21.292.675 30,910,319 1172,964,241) 1,542,637,874

Total increase/(decrease) in net assets 188,837.348 15,862,607 (20,631,176) 34,474,755 (7,440,418) 30,527,592 (161.107,684) 1,148.186.348

Net assets at beginning of period 287.010.041 179,826,712 140.180.565 51,046,503 256,924,604 245,118,494 845,201,576 10,253,984.173

. . . ...

..... ~-

Translation difference . 485,351,425

Net assets at end of perlod 475.847.389 195,689,319 119,549,389 85,521,258 249,484,186 275,646,086 684,093,892 11,890,521.946

........ ~ . ... ......




Euro EUIU European Corporate Strategic High Yield Global Short Maturity US High Combined

Bond Bond Bond Bond EumBond US Bond Yield Bond totals of all Fund Fund Fund Fund Fund Fund Fund funds +

EUR EUR EUR USD EUR USD USD US0

Income Dividends (net of withholding taxes) Interest on bonds Bank interest Income from securities lending

4,219 1,478,551 7,019,807

50,504 116,585 56,171

1,529,055 7.196.782 ~ -

234,005 2,666,950 5.673.484

140,996 20,368

497,648 64,217,162 9,687,201 91,057,004

65,043 5,837,699 1,956,541

14,317,545 602,871 43,743

14,964,159 .......

6,2 2 6,8 3 7 1,840,896

8,067,733

1,171,158 11,003

248,063 23,354 88,598 99,639

70,978

2,971,933 5.834.848

899,751 20,011

148,805 11,437 66,356 79,655

2,960 27,549

133,512 47,048

3,611

1,440,695 ....

4,394,153

(659.168)

325,484

2,885,645

10,249.892 163,068,406 Total income

Expenses Investment advisory fees Custodian fees Administration fees Professional fees Taxe d'abonnement Printing and publication fees Bank interest Transaction fees -Class I -Class A - Class B -Class IX -Class AX 'Class BX Tax charges (excluding Taxe d'abonnement) Other fees

Total expenses



Net realized gainAloss) on sales of investments Net realized gain/(loss) on financial futures contracts Net realized gain/(loss) on foreign exchange transactions

... ..

160,723 1,058,999 7,055 24,161

26.718 153,794 10,785 6,365 18,254 82,748 70,884 82,602

4,141 3,372 16.643 6,717 10,500 176,965 4,478 11 1,271

325,629 3,715

106,771 13,233 15,516 45,622

38 2,404

10,972 38,712 50.992

2,468,994 60,645

279,359

242.472 116,216

22,684

654,956 6,494

128,331 24,489 29,777 55,096

49,539,668 1,109,048 6.532.469

747,470 2,745,126 3,273,636

274,163 1,055,559 1.224.867 3,928,874 6,684.085

23,361 203,689

3,160 116,999 201,123

61 1,406 19,452 45,262

149,972 155,024 2,242,114 129,043

796 47.01 1 55,688 44,769

118 264 831

7,187 3,974

337,368 1,710,968 . __ . .

51,993

1.~43.680 5,485,814

3,975

617,579

3.61 1

1,052,231 ....

3,975 3,610

5,605,944 1,976,160 . _ _

77,663,297

849,751

9,197,661 86,254,860 2,354,354 9,358,215 6,091.573

(1,507,682) (1,274,484)

(5,720) (141,371)

327,985 1,253,530

127.445.751)

(335,059)

1,494,574

(282.638) 2,671,091

706,751

(24.590) (54.055)

(24,903,498) (175,013.458)

474,193 1,073,264

(300,703) 8,578,169

Net realized profi(loss) for the period 58.263 5,323,489 (23,931,882) 6,946,114 9,050,987 9,415,360 (15,532,347) (79.107.165)

Net change in unrealized appreciation/ (depreciation) on investments (1,092,181) (4,691,4431 5,446,934 20,842,446 (1,355,034) 1,380,821 12,020,474) (310,099,514) Net change in unrealized appreciation/ (depreciation) on financial futures contracts 1.427 (494,768) 273,340 (161.854) 1,061,325 (278,676) 428,537 Net change in unrealized appreciation/ (depreciation) on foreign exchange transactions 179,924 740,205 2,225,566 17,286 (820,407) (385,783)

Net change in net assets as a result of operations (846,567) 877.483 (15,986,042) 27,643,992 7,695,953 11,857,506 (18,651,904) (389,163.925)

Dividend distribution 180.093) 15,287,601) Proceeds received on subscription of shares 53,112,587 128,806,472 9,448,908 188,547,632 1,127,019,880 540,586,798 51,214,322 8,420,908,094 Net amount paid on redemption of shares (7,060,277) 1179,482,4251 (45,493,504) (66,284,331) (495,645,156) (544,171,470) (91,221,225) 16,878,270,220)

........... -. ... - ..... Net change In net assets as a result of capital transactions 46,052,310 (50,675,953) (36,044,596) 122,263,301 631,374,724 (3,584,672) (40,006,903) 1,542.637.874

Total increase/(decrease) In net assets 45,205,743 149,798,470) (52.030.638) 149.907.293 639,070,677 8,272,834 (58,738,400) 1,148,186,348

Net assets at beginning of period 25,218,186 291,132.270 114,230,283 228,484.001 556,342,178 334,029,765 220,181,325 10.253.984.173

Translation difference - 488,351,425

Net assets at end of perlod 70,423,929 241.333.800 62,199,645 378.391.294 1,195,412,855 342,302,599 161,442,425 11,890,521.946




Select Global Select Global Euro Sterling US Dollar Diversified Diversified Combined

Liquidity Liquidity Liquidity (Eum) (USD) totals of all Fund Fund Fund Fund Fund funds +

EUR GBP USD EUR USD US0

. -_ - - -__ - . . .

.. - .. -. . -.

Income Dividends (net of withholding taxes) 30,537 28,600 64,217,162 Interest on bonds 7,753,792 382,287 10,220,768 41,159 45 753 91,057,004 Bank interest 562,768 60,781 5,165 5,837,699 lnronie trom securities lending 1956,541

Total Income

Expenses Investment advisory fees Custodian fees Adrriinistration fees Professional fees Taxe tiabonnement Printing and publication fees Bank interest Transaction fees -Class I - Class A -Class B -Class IX -Class AX -Class EX Tax charges (excluding Taxe tiabonnement) Other fees

Total expenses



Net realized gain/(loss) on sales of investments Net realized gain/lloss) on financial futures contracts Net realized gain/(loss) on foreign exchange transactions

. - .. . .- -. . . . . .

8.316.560 443,068 10,220,768 76,861 74,353 163,068,406

620,875 58,127

209,479 46,345 34,353

137,235

17,018 73,139 36,518

1,246 30 63

22,417 2,849

19,119 6,372 1,501

60,790

1,324 68 22 2

11

2 ,804,848 31,167

343,630 68,635 74,036

180,624 17,674 12,827 29,471

3,824 772

23,200 203,368

2.329

53,909

18,015 320

8,598 2,208

43,366

6,828

20,828 49,539,668 302 1,109,048

5,938 6.532.469 7,547 747,470 1,735 2,745,126

40,096 3,273,636 171 274,163

8,156 1,055,559 1,214 1,224,867 1,598 3,928374

6,684,085 23,361

203,689 3,160

116,999 6,691 201.123

10,199 2.107

296 44

2,276 1,131

115,606

89,029

416.491

. . . .. 7.121

1,236,764

35,158

7,114,954

3,850.314

31,040

6,401,494

99,102

61,093

38,852

94,276 77.663.297

54,821 849,7 5 1

34,898 86,254,860

57,495 3,708 55,859 45,007 (175,013,458)

1,073,264

(43,025) 8,578,169 96,634

Net realized profit/(loss) tor the period

Net change in unrealized appreciation/ (depreciation) on investments Net change in unrealized appreciation/ (depreciation) on financial futures contracts Net change in unrealized appreciation/ (depreciation) on foreign exchange transactions

7,172,449 420,199 6.401.494 191,345 36.880 (79,107,165)

(791,241) (174,170) (310,099,514)

428,537

83,350 (26,724) 1385,783)

Net change in net assets as a result of operations 7,172,449 420,199 6,401,494 (516,546) (164,014) (389,163,925)

Dividend distribution Proceeds received on subscription of shares Net amount paid on redemption of shares

(5,292) (1,070) (5,201,208) . (5,287,601) 526,230,617 41,230,878 789.723.773 10,715,778 8,528,364 8,420,908,094

(391,060,029) (587,377) (866,757.251) (177.666) (2,318) (6,878,270,220)

Net change In net assets as a msult of capital bansactions 135,170,588 40,643,501 (77,033,478) 10,538,112 8,526,046 1,542,637,874

Total Increase/(decrease) In net a8sets 142,337,745 41.062.630 (75,833,192) 10,021,566 8362.032 1,148,186,348

Net assets at beginning of period 363,510,512 20,958,041 1,095,993,939 2,606,023 2,000 10,253,984,173

translation difference - 488,351,425 . - .. . . ~- .. ~- . . . . ...... - . .

Net assets at end ot perlod 505,848.257 62,020,671 1,020,160,747 12,627,589 8,364,032 11,890,521,946



Statement of share and net assets statistics As at 30 June 2002

Competitive Asian Asian Edge Emeqlng

E q W Properry "Best Ideas" Europe Fund Fund Fund Fund

USD USD USD EUR .

Net asset value per share class I 31 December 2000 31 December 2001 30 June 2002

Net asset value per share class A 31 December 2000 31 December 2001 30 June 2002

Net asset value per share class B 31 December 2000 31 December 2001 30 June 2002

Net asset value per share class IX 31 December 2000 31 December 2001 30 June 2002

Net asset value per share class AX 31 December 2000 31 December 2001 30 June 2002

Net asset value per share class EX 31 December 2000 31 December 2001 30 June 2002

Net asset value per share class M 31 December 2000 31 December 2001 30 June 2002

Net asset value per share class MX 31 December 2000 31 December 2001 30 June 2002

Net assets 31 December 2000 31 December 2001 30 June 2002

15.19 7.96 9.03 19.73 14.82 6.83 6.87 18.94 15.76 7.10 6.30 16.97

14.86 7.80 8.98 19.71 14.42 6.65 6.78 18.81 15.29 6.90 6.20 16.81

14.33 7.70 8.88 19.67 13.77 6.53 6.64 18.71 14.53 6.74 6.04 16.68

Emerging Markets

Equity Fund

USD

Europe ex UK European

Property Equity Fund Fund

EUR EUR - . ..

11.43 10.96 11.41

11.17 10.65 11.06

10.81 10.24 10.59

9.61 23.52 8.29 27.22 7.22

9.57 23.52 8.21 27.18 7.13

9.52 23.48 8.09 27.02 7.00

171,924,317 23,955,060 156,477,858 25,804,720 381,839,005 - 97,986,583 142,193,796 27,926,057 35,466,616 38,482,139 254.194598 105,887,020 396,923,739 165,165,440 30,048.191 74,881,954 35,966,547 285,939,171 126,672,562 310,808,541


Statement of share and net assets statistics (continued) As at 30 June 2002

European European European Global Equity Growth European Small Cap European Global Small Cap

Growth Opportunities PmpertV Value Value Equity Brands Value Fund Fund Fund Fund Fund Fund Fund

EUR

13.88 11.93 10.17

EUR EUR

23.31 13.32 18.48 13.07 16 39 14 68

.- EUR EUR USD USD

27 25 19 26 27 47 17 81 31 98 18 62

_ _ Net asset value per share class I 31 December 2000 31 December 2001 30 June 7002


30.58 26.13 27.78 26.33 25.80

13.78 11.77 10.01

23.28 13.07 18.35 12.74 16.23 14.27

29.88 26.12 26.99 26.24 25.00

27.23 18.85 27.30 17.33 31.69 18.07

Net asset value per share class B 31 December 2000 31 December 2001 30 June ZOO2



Net asset value per share class BX 31 December 2000 31 December 2001 30 June 2002


Net asset value pur share class MX 31 December 2000 31 December 2001 30 June 2002


13.54 11.44 9.68

23.25 12.78 18.22 12.33 16.05 13.74

28.88 26.09 25.83 26.06 23.81

27.18 18.39 26.98 16.80 31.18 17.45

336,536,147 509,130,686 471,781,516

4,426.983 233,698,595 3,652,582 111,258,581 5,114,309 143,647,159

- 473,341,633 12,872,961 715,603,852 62,920,351 762,014,335

6,037,003 59,431,567 69,625,024 55,948,708

336,979,277 71,380,059



Global Global Technology Value Equity

Fund Fund

USD USD




6.96 35.80 3.87 32.95 2.36 33.26

Japanese Latin us

Opportunities Value Equity Equity W l t y GrOWm GrOWm Japan e s e American us Equily

Fund Fund Fund Fund Fund

JPY JPY US0 USD USD .-

-..

820.12 1,063.58 14.15 36.95 703.15 857.56 13.93 24.78 31.14 699.12 848.78 12.18 20.82 25 57

6.92 35.01 817 86 1,040.10 13.84 36.17 3.82 32.04 697.23 833.98 13.55 24.80 30.30 2.33 32.26 691.32 823.14 11.81 20.75 24.82

6.86 33.81 813.87 995.45 13.31 35.00 3.76 30.63 689.93 790.04 12.90 24.76 29.03 2.28 30.68 681.72 775.74 11.18 20.63 23.66







78,676,392 894,840,049 1,015,185,882 57,788,641,348 305,217,292 - 1,205,482,021 61,904.319 1,171,788,553 1,734,155,251 43,927,392,900 225.940.257 34,688,171 1,052,909,997 38,969.119 1,354,547,531 3,009,102,903 43,041,246,423 159,565,714 24,221,099 925,193,623

The accompanying nates are an integral part of these financial statements.


.... .- -. .










us us us Emerging Growth and us Small Cap Small Cap World Markets Euro

Income Property Growth Value Equity Debt Bond Fund Fund Fund Fund Fund Fund Fund

USD USD USD USD USD USD EUR ...... ........... ....

..............

17.71 18.57 34.64 24.58 23.29 25.82 8.37 16.80 20.39 30.38 23.41 20.03 28.47 8.83 16.22 22.38 27.00 22.02 18.07 28.74 8.98

17.33 18.23 33.89 24.00 23.25 25.21 8.23

15.74 21.79 26.19 21.32 1739 27.83 8.77 16.34 19.92 29.55 22.73 19.88 27.64 8.64

16.76 17.57 32.72 23.19 23.16 24.40 8.02 15.65 19.00 28.24 21.77 19.62 26.47 8.34 15.00 20.69 24.91 20.31 17.56 26.47 8.42

136,749,810 142,712,562 135.680.215 90,722,456 113,521,712 237,707,367 643,691,634 287,010,041 179,826,712 140,180,565 51.046.503 256,924,604 245,118,494 845,201,576 475347.389 195,689,313 119,549.389 85,521,258 249,484,186 275,646,086 684,033,892


...


Euro Euro European Corporate Strateglc High Yield

Bond Bond Bond Fund Fund Fund

EUR . _.

EUR EUR __

Net asset value per share class I 31 December 2000 22 88 12 57 31 December 2001 25 20 24.13 10 21 30 June 2002 24.98 24 29 8.44


Net asset value per share class E 31 December 2000 31 December 2001 30 June 2002







25.15 24.87

25.08 24.68

Global Short Maturity US High Bond Euro Bond US Bond Yield Bond Fund Fund Fund Fund

US0 EUR USD USD . ... -. - .-

.- .. . . ~. .

19.87 14.79 16.26 18.87 19.79 15.48 17.72 17.87 21.61 15.69 18.38 16.22

22.51 12.40 19.56 14.52 16.00 18.56 23.64 10.04 19.40 15.14 17.35 17.50 23.75 8.27 21.15 15.32 17.96 15.85

21.77 12.07 18.83 14.21 15.47 17.86 22.64 9.67 18.48 14.68 16.62 16.68 22.63 7.93 20.05 14.77 17.12 15.04

18.17 15.46 13.39

17.12 14.51 12.54

16.62 14.08 12.16

- 279,364,666 302,626,903 213,704.072 199,695,645 186,772,236 315,388,535 25,218,186 291,132,270 114,230,283 228.484.001 556,342,178 334,029,765 220,181,325 70,423.929 241,333,800 62,199,645 378,391,294 1,195,412,855 342,302,599 161,442.425



Select Global Selet Global Divershied Diversffled Euro Sterling US Dollar

fund Fund Fund Fund Fund

EUR GBP USD EUR USD

L I q u I d Hy Liquidity Liquidity (Euro) W D )

- -

-.










10.41 10.84 11.00

10.35 10.75 10.90

10.20 10.52 10.63

1 .oo 1 .oo 1 .oo

I .oo 1 .oo 1 .oo

10.84 11.01

1 .oo 1.00

126,160,322 363,510,512 505,848,257

10.13 10.31

10.13 10.30

10.10 10.24

10.00

10.14 10.33

10.00 10.00

20,958,041 62,020,671

10.89 11.30 24.94 25.00 11.38 24.33 24.67

10.80 11.16 11.22

10.60 10.88 10.91

24.94 24 26

23.85

25.00 24.61

1.00 1.00 I .oo

1 .oo 1.00 1 .oo

1 .oo 1 .00 1.00

11.30 11.39

1 .oo 1 .oo

388,217,199 1,095,993,939 2,606,023 2,000 1,020,160,747 12,627.589 8,364,032


Notes to the financial statements As at 30 June 2002

1 Thecompany

The Company was incorporated on 21 November 1988 under the laws of the Grand Duchy of Luxembourg as a “Societe d’lnvestissement a Capital Variable” (“SICAV”) and is registered as an undertaking for collective investment pursuant to Part 1 of the Law of 30 March 1988. The Company is an Undertaking for Collective Investment in Transferable Securities (“UCITS”) for the purpose of the Council Cirective EEC/85/611 (“UCITS Directive”).

The exclusive purpose of the Company is to invest the funds available to it in transferable securities and other assets permitted by law, with the purpose of spreading investment risks and affording its shareholders the results of the management of its assets. The Company is presently structured to provide both institutional and individual investors with a variety of equity, bond, liquidity and asset allocation Funds. At the date of this report forty Funds are open for subscription.

Fund Date of launch - _ -. .. --

Asian Equity Fund Asian Property Fund Competitive Edge “Best Ideas’ Fund Emerging Europe Fund Emerging Markets Equity Fund Europe ex UK Property Fund European Equity Fund European Equity Growth Fund European Growth Opportunities Fund European Property Fund European Small Cap Value Fund European Value Equity Fund Global Brands Fund Global Small Cap Value Fund Global Technology Fund Global Value Equity Fund Japanese Growth Opportunities Fund Japanese Value Equity Fund Latin American Equity Fund US Equity Fund US Equity Growth Fund US Growth and InLome Fund US Property Fund US Small Cap Growth Fund US Small Cap Value Fund World Equity Fund Emerging Markets Debt Fund Euro Bond Fund Euro Corporate Bond Fund Euro Strategic Bond Fund European High Yield Bond Fund Global Bond Fund Short Maturity Euro Bond Fund US Bond Fund US High Yield Bond Fund Euro Liquidity Fund Sterling Liquidity Fund US Dollar Liquidity Fund Select Global Diversifled (Euro) Fund Select Global Diversified (USD) Fund

8 October 1991 1 July 1997

22 November 1999 16 October 2000

27 July 1993 29 January 2001

3 April 2000 29 January 1999 16 October 2000

1 July 1997 12 November 2001

5 March 1991 30 October 2000

14 December 1993 31 January 2000

7 November 1989 3 July 2000

25 May 1993 2 August 1994

3 December 2001 25 August 1992

17 May 1994 9 January 1996 27 August 1991

17 May 1994 31 July 2000 11 April 1995

15 September 1992 3 September 2001 25 February 1991

27 May 1997 7 November 1989

2 August 1994 25 August 1992 6 October 1992

31 January 2000 3 September 2001

1 April 1998 12 December 2001 12 December 2001

The Board of Directors of the Company have for the time being made no decision with regard to the opening of the Pacific Basin Equity Fund which has been approved by the Luxembourg supervisory authority the Commission de Surveillance du Secteur Financier (“CSSF”).

Each Class of Shares within each Fund has a different fee structure but participates in the same pool of assets within a given Fund. For the “IX”, “AX” and “BX” Classes of Shares of the US High Yield Bond Fund, the Company intends to declare dividends which will be equal to the net investment income attributable to such Classes. For the “IX”, “MY, “AX” and “BX Classes of Shares of the Liquidity Funds, the Company intends to declare dividends which will be equal to the net investment income and realised capital gains, reduced by realised losses, if any attributable to such Classes. Such dividends, if any, will be declared on each Luxembourg Business Day in the case of the Liquidity Funds, and on the last Luxembourg Business Day of each month in the case of the US High Yield Bond Fund.

The following significant change were approved by the CSSF and made in the period 1 January 2002 to 30 June 2002 :

The Board of Directors decided on 6 May 2002 to open the Select Global Convertible Bond (Euro) Fund and the Select Global Convertible bond (USD) Fund. The offering period of the Funds started on 17 June 2002 and will end on 16 July 2002.

US Property Fund

Investment by the US Property Fund via Morgan Stanley SICAV Subsidiary S.A. (“the Subsidiary”), in order to enhance the after tax income returns generated by the securities of US Real Estate Investment Trusts (REITS) and Real Estate Operating Companies (REOCS) has ceased due to a change in the United States- Luxembourg tax treaty that took effect on 1 January 2002. From that date the Subsidiary no longer qualified for the 15% rate of dividend withholding tax and the Board of Directors liquidated the Subsidiary.

Significant accounting policies

a) Valuation of securities Securities listed on a recognised stock exchange or dealt on any other regulated market are valued at their last available mid-market prices, or, in the event that there should be several such markets, on the basis of their last available prices on the main market for the relevant security.

In the event that the last available price does not reflect the fair market value of the relevant securities, the value of such securities is defined by the Board of Directors based on the reasonably foreseeable sales price determined prudently and in good faith.

Securities not listed or traded on a stock exchange or not dealt on another regulated market are valued on the basis of the probable sales price determined prudently and in good faith by the Board of Directors.

Notes to the financial statements (continued) As at 30 June 2002

3 Significant accounting policies (continued)

Securities held in the US Dollar Liquidity Fund, the Sterling Liquidity Fund and the Euro Liquidity Fund with a known maturity date, are valued using an amortised cost method. This involves valuing an investment at its cost and thereafter assuming a constant amortisation to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the investments.

Valuation of futures and forward exchange currency contracts Futures, as disclosed on page 105, and forward contracts, which are traded on exchanges or on other organised markets are valued at the last available settlement prices of these contracts on exchanges and organised markets on which the particular futures or forwards contracts are traded by the Company.

Securities transactions Securities transactions are accounted for on the date the securities are purchased or sold. Realised gains or losses on the sale of securities are determined on the basis of the average cost method.

Translation of foreign currencies Transactions in foreign currencies are translated into the currency of each Fund at the exchange rate ruling at the date of the transactions. Assets and liabilities denominated in foreign currencies are translated into the currency of each Fund at the exchange rates ruling at the date of the statement of assets and liabilities.

The combined statement of assets and liabilities is presented in US dollars at the exchange rates ruling at the date of the statement of assets and liabilities, while the combined statement of operations and changes in net assets is presented at the average exchange rates ruling during the period.

Forward Settlement Transactions The Company may, to a limited extent, enter into forward settlement transactions for the purpose of efficient portfolio management or hedging with broker-dealers who make markets in these transactions and who are first class financial institutions that specialise in these types of transactions and are participants in the over-the-counter markets. Such transactions consist of the purchase or sale of debt securities at their current price with delivery and settlement at a specified future date (which could be in two to twelve months time).

As settlement date approaches for such transactions, the Company may agree with the relevant broker-dealer either to buy or sell the debt securities back to such broker-dealer or to roll the trade for a further period with any gains or losses realised on the trade paid to, or received from, the broker-

dealer. Purchase transactions are, however, entered into by the Company with a view to acquiring the relevant debt securities.

The Company may pay customary fees included in the price of the debt securities to the relevant broker-dealer in order to finance the cost to such broker-dealer of the delayed settlement.

As of 30 June 2002, there were no forward settlement transactions positions.

Securities lending

As of 30 June 2002, the Company loaned securities having a value of USD 1,273,268,562 and received collateral with a market value at 30 June 2002 of USD 1,454,750,070,

Related party transactions

Under the terms of an investment advisory agreement, Morgan Stanley Investment Management, Inc. has been appointed Investment Adviser with responsibility for advising the Company within the scope of the day-to-day management of the various Funds. The Investment Adviser is entitled to receive from the Company a fee payable monthly in arrears, and calculated on the basis 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 to the Investment Adviser are at the following annual rates :

Fund name

Asian Equity Fund Asian Property Fund Competitive Edge "Best Ideas" Fund Emerging Europe Fund Emerging Markets Equity Fund Europe ex UK Property Fund European Equity Fund European Equity Growth Fund European Growth Opportunities Fund European Property Fund European Small Cap Value Fund European Value Equity Fund Global Brands Fund Global Small Cap Value Fund Global Technology Fund Global Value Equity Fund Japanese Growth Opportunities Fund Japanese Value Equity Fund Latin American Equity Fund US Equity Fund US Equity Growth Fund US Growth and Income Fund US Property Fund US Small Cap Growth Fund US Small Cap Value Fund World Equity Fund Emerging Markets Debt Fund Euro Bond Fund Euro Corporate Bond Fund Euro Strategic Bond Fund European High Yield Bond Fund Global Bond Fund

Class I, IX'. M and MX**

0.75 0.75 0.75 1.10 1.10 0.75 0.70 0.75 0.95 0.75 0.95 0.75 0.75 0.95 0.95 0.75 0.95 0.75 1.00 0.70 0.70 0.70 0.75 0.95 0.95 0.75 0.90 0.45 0.45 0.45 0.50 0.45

Class A, B AX and EX'

1.25 1.25 1.25 1.60 1.60 1.25 1.20 1.25 1.45 1.25 1.45 1.25 1.25 1.45 1.45 1.25 1.45 1.25 1.50 1.20 1.20 1.20 1.25 1.45 1.45 1.25 1.40 0.80 0.80 0.80 0.85 0.80

-

I

Notes to the financial statements (continued) As at 30 June 2002

5 Related party transactions (continued) Fund name Class I, IX’.

M and MX*’ Class A, B

AX and BX’

Short Maturity Euro Bond Fund US Bond Fund US High Yield Bond Fund Euro Liquidity Fund Sterling Liquidity Fund US Dollar Liquidity Fund Select Global Diversified (Euro) Fund Select Global Diversified (USD) Fund

0.45 0.45 0.50 0.20 0.20 0.20 0.60 0.60

0.80 0.80 0.85 0.35 0.35 0.60 1.10 1.10

only the US Dollar Liquidity Fund, the Euro Liquidity Fund, the US High Yield Bond Fund and the Sterling Liquidity Fund issue Classes AX, BX and IX Shares at present

M and MX at present. * ’ only the US Dollar Liquidity Fund, the Euro Liquidity Fund and the Sterling Liquidity Fund issue Classes

In the case of any individual Fund, the Investment Adviser may choose to waive all of its fee or any portion thereof at its absolute discretion for an indefinite period, in order to reduce the impact such fee may have on the performance of the Fund in instances where the Fund’s net assets are of insufficient size.

The Funds are subject to a monthly shareholder service fee at a maximum annual rate of 0.25% of the Funds’ aggregate average daily net asset value attributable to all Classes of Shares of the Funds. For the foreseeable future, the Company has reduced the fees for shareholder service so that the Equity Funds, Bond Funds and Asset Allocation Funds are subject to a monthly shareholder service fee at the annual rate of 0.08% of the Funds’ aggregate average daily net asset value attributable to Classes I and IX Shares and at the annual rate of 0.15% of the Funds’ aggregate average daily net asset value attributable to Classes A and AX Shares and Classes B and BX Shares. The Company has similarly reduced the fees for shareholder service so that the Liquidity Funds will be subject to a monthly shareholder service fee at the annual rate of 0.05% of such Funds’ aggregate average daily net asset value attributable to the relevant Class of Shares. The Company may subject Classes “M” and “MX Shares to a shareholder service fee but currently has decided not to.

The shareholder service fee is paid to Morgan Stanley Investment Management Limited (the “Distributor” 1 as compensation for providing certain services to shareholders.

The Distributor is also paid a distribution fee for the equity Funds, bond Funds and asset allocation Funds, accrued daily and paid monthly, at the annual rate of 1.00% of the average daily net asset value of Classes B and BX Shares as compensation for providing distribution-related services to the Funds with respect 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% of the average daily net asset value for Classes B and BX Shares.

Morgan Stanley Investment Management Inc. and the sub-advisers for the Morgan Stanley SICAV have entered into the following types of transactions in which a connected person had a material interest:

i) The transaction is in relation to an investment in respect of 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 new issue in which the affiliated company was a member of the underwriting syndicate.

All the transactions executed on behalf of the Morgan Stanley SICAV were entered into in the ordinary course of business and on normal commercial terms.

Taxation

Under current law and practice, the Company is not liable to any Luxembourg income tax, nor are dividends paid by the Company liable to any Luxembourg withholding tax. The Company is, however, liable to annual tax in Luxembourg calculated at the rate of 0.05% of the net asset value of all Funds (except the Liquidity Funds for which the rate is 0.01% of the net asset value of the Liquidity Funds). This tax is payable quarterly on the basis of the net assets of the relevant Funds, calculated at the end of the quarter to which the tax relates. No stamp or other tax will be payable in Luxembourg in connection with the issue of Shares of the Company, except a once and for all tax of Euro 1,239 which was paid upon incorporation.

Under current law and practice in Luxembourg, no Luxembourg capital gains tax is payable on the realised capital appreciation of the assets of the Company.

Dividends, interest and capital gains on securities held by the Company may be subject to non-recoverable withholding of capital gains taxes in the country of origin.

Statements of Portfolio Changes

A statement giving the changes in the portfolio of investments for the period ended 30 June 2002 is available to shareholders, free of charge, on request from the Company’s registered office, and also from the Paying Agents in countries where the company is registered to sell its Shares. Please see list of Paying Agents on page 134.

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, in connection with abnormal redemption activity. Borrowings pursuant to the Facility are subject to interest at a mutually agreed upon rate.

Directors and administration

Directors Investment adviser Adolf Brundler Morgan Stanley Managing Director Investment Management Inc Private Banking Bank Morgan Stanley AG, Zurich

Christian Kremer

1221 Avenue of the Americas New York NY 10020 USA

Partner (Lawyer) Investment sub-advisers Kremer Associes & Clifford Chance Grand Duchy of Luxembourg Morgan Stanley Gestion,

SGIIC, S.A. Stefan0 Russo Managing Director Morgan Stanley Dean Witter Bank Limited Milan

55 Calle de Serrano Madrid Spain

Pioneer Investment Management Limited

Robert Sargent 3 Custom House Plaza Managing Director I. F. S. C Morgan Stanley Dublin 1 Investment Management Limited Ireland London

Morgan Stanley Investment Management Limited 25 Cabot Square Canary Wharf London E14 4QA United Kingdom

Morgan Stanley Investment Management Company 23 Church Street 16-01 Capital Square Singapore, 049481

Morgan Stanley Asset & Investment Trust Management Co., Limited Yebisu Garden Place Tower 20-3, Ebisu 4-Chome Shibuya-ku, Tokyo 150-6009 Japan

Morgan Stanley Investment Advisors Inc. 1221 Avenue of the Americas New York, New York 10020 United States of America

Morgan Stanley Investments LP One Tower Bridge West Conshohoken PA 19428 United States of America

Registered office 5, rue Plaetis L-2338 Luxembourg Grand Duchy of Luxembourg

Distributor Morgan Stanley Investment Management Limited 25, Cabot Square Canary Wharf London E14 4QA United Kingdom

Custodian bank J.P. Morgan Bank Luxembourg S.A. 5 , rue Plaetis L-2338 Luxembourg Grand Duchy of Luxembourg

Administrator, paying and domiciliary agent J.P. Morgan Bank Luxembourg S.A. 5 , rue Plaetis L-2338 Luxembourg Grand Duchy of Luxembourg

Registrar and transfer agent First European Transfer Agent S.A. 5 Rue Thomas Edison L-1445 Strassen Grand Duchy of Luxembourg

Auditor Ernst & Young SA. Parc d’Activite Syrdall, 7 L-5365 Munsbach Grand Duchy of Luxembourg

Legal adviser Kremer Associes & Clifford Chance 4, Place de Paris B.P. 1147 L-1011 Luxembourg Grand Duchy of Luxembourg

Morgan Stanley & Co. International Limited 25 Cabot Square, Canary Wharf London E14 4QA United Kingdom

Paying and Information Agents Copies of the Financial Reports of the Company can be obtained from the following Paying and Information Agents

Austria Meinl Bank Aktiengesellschaft Bauernmarkt 2 Postfach 99 A-1014 Wien Austria

France Natexis Banques Populaires 45, rue Saint Dominique 75007 Paris France

Germany Morgan Stanley Bank AG Junghofstrasse 13-15 60311 Frankfurt am Main Germany

Greece Alpha Bank 40, Stadiou Street GR-102 52 Athens Greece

Hong Kong Morgan Stanley Dean Witter Asia Limited 30th Floor Three Exchange Square, Central, Hong Kong

I re land J.P. Morgan Administration Services (Ireland) Limited JPMorgan House International Financial Services Centre Dublin 1 Ireland

Italy C/O CITCO Bank Nederland N.V. Strada 1 Palazzo F5 20090 Assago Milanofiori Italy

C/O Banca Popolare Commercio E Industria S.C.R.L. Via della Moscova, 33 20121 Milano Italy

C/O Banca Sella S.p.A. Via Italia, 2 13900 Biella Italy

C/O Area Banca S.p.A. Viale Europa, 32 Segrate 20090 Milano Italy

C/O lccrea Banca S.p.A. Via Torino, 146 00184 Roma Italy

C/O IntesaBCl S.p.A. Foro Buonaparte, 35 20121 Milano Italy

C/O Rasbank S.p.A. Piazza Erculea, 15 20122 Milano Italy

BIPOP Carire S.p.A. Via Leonard0 da Vinci, 74 25122 Brescia Italy

Netherlands ABN Amro Trust Company (Nederland) B.V. P.O. Box 1469 1000 BL Amsterdam The Netherlands

Spain Morgan Stanley Dean Witter, S.V., S.A. (sociedad unipersonal) Serrano 55 28006 Madrid Spain

Switzerland Bank Morgan Stanley AG Bahnhofstrasse 92 8023 Zurich Switzerland

United Kingdom Morgan Stanley Investment Management Limited 25 Cabot Square London E14 4QA United Kingdom

CN SAR SlCAV 02

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