morgan stanley sicav · morgan stanley sicav 31 december 2003 2 asian equity fund investment aims...

Annual report 2003 Morgan Stanley SICAV Société d’Investissement à Capital Variableincorporated under the laws of Luxembourg

www.morganstanley.com/sicavThe Morgan Stanley SICAV website is directed only to persons located in Austria, Germany, Italy, Luxembourg, Spain, Sweden, Switzerland and the United Kingdom.

Morgan Stanley SICAV 31 December 2003

Table of contents

1 Shareholders’ information

Statement of investmentsEquity Funds

2 Asian Equity Fund

4 Asian Property Fund

5 Competitive Edge “Best Ideas” Fund

7 Emerging Europe and Middle East EquityFund

9 Emerging Markets Equity Fund

12 Europe ex UK Property Fund

14 European Equity Fund

16 European Equity Growth Fund

18 European Property Fund

20 European Small Cap Value Fund

22 European Value Equity Fund

24 Global Brands Fund

25 Global Small Cap Value Fund

28 Global Technology Fund

30 Global Value Equity Fund

32 Japanese Equity Growth Fund

36 Japanese Value Equity Fund

38 Latin American Equity Fund

40 US Equity Fund

43 US Equity Growth Fund

46 US Property Fund

48 US Small Cap Equity Fund

51 US Small Cap Growth Fund

55 US Value Equity Fund

58 World Equity Fund

Bond Funds

60 Emerging Markets Debt Fund

62 Euro Bond Fund

65 Euro Corporate Bond Fund

68 Euro Strategic Bond Fund

71 European Currencies High Yield BondFund

75 Global Bond Fund

78 Select Global Convertible Bond (Euro)Fund

81 Select Global Convertible Bond (USD)Fund

84 Short Maturity Euro Bond Fund

86 US Bond Fund

91 US Dollar Short Duration Fund

94 US High Yield Bond Fund

Liquidity Funds

99 Euro Liquidity Fund

101 Sterling Liquidity Fund

102 US Dollar Liquidity Fund

Asset Allocation Funds

103 Select Global Diversified (Euro) Fund

106 Select Global Diversified (USD) Fund

Currency exchange contractsand Futures contracts109 Open forward foreign currency

exchange contracts

111 Open futures contracts

Financial statements113 Statement of assets and liabilities

119 Statement of changes in number ofshares

126 Statement of operations and changesin net assets

133 Statement of share and net assetsstatistics

139 Notes to the financial statements

143 Report of the independent auditor

Other information144 Directors and administration

145 Paying and Information agents

146 Appendix 1: Fund Expense Ratios


Shareholders’ information

The annual general meeting ofshareholders of the Company is held atthe registered office of the Companyand will be held on the second Tuesdayof the month of May at 10.30 am, or ifsuch day is not a bank business day onthe following bank business day.

Notices of all general meetings are sent by mail to all registered shareholders at their registeredaddress at least 8 days prior to the meeting. Such notices will indicate the time and place of themeeting as well as the conditions of admission thereto. Said notices will also contain the agendaand requirements of Luxembourg law with regard to the necessary quorum and majorities at themeeting. To the extent required by law, further notices will be published in the Mémorial C,Recueil Spécial des Sociétés et Associations du Journal Officiel du Grand-Duchy de Luxembourgand in one Luxembourg newspaper.

Audited financial statements to the shareholders in respect of the preceding financial year aremade available at the registered office of the Company and are sent to holders of registeredShares at their registered address. In addition, unaudited semi-annual reports are also madeavailable 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 on each dealing day duringLuxembourg business hours at the registered office of the Company, and is published daily inseveral leading financial newspapers world-wide.

No subscriptions can be received on the basis of financial reports. Subscriptions are only valid ifmade on the basis of the current prospectus supplemented by the latest annual report and themost recent semi-annual report, if published thereafter.

In Switzerland, Bank Morgan Stanley A.G. carries out the functions of Swiss representative of theCompany as well as those of paying agent. The prospectus, the articles of association, theannual and semi-annual reports of the Company may be obtained, upon request and free ofcharge, 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 hasundertaken during the financial period can be obtained, upon request and free of charge, fromthe Swiss representative, Bank Morgan Stanley A.G., Bahnhofstrasse 92, 8023 Zurich,Switzerland.

The investment aims set out in this annual report are summaries only. The complete investmentobjectives and policies for each Fund are set out in the Company’s current prospectus.

• Funds merged in the twelve months to 31 December 2003.European Growth Opportunities Fund merged into European Small Cap Value Fund on 2 May 2003.

• Fund name changes in the twelve months to 31 December 2003.From Emerging Europe Fund to Emerging Europe and Middle East Equity Fund.From Japanese Growth Opportunities Fund to Japanese Equity Growth Fund.From US Small Cap Value Fund to US Small Cap Equity FundFrom US Growth and Income Fund to US Value Equity Fund.

Morgan Stanley SICAV 31 December 2003 2

Asian Equity Fund

Investment aimsTo seek long-term capital appreciation, measured in US dollars,through investment in the stock markets of Asia, excluding Japan,thereby taking advantage of the dynamic economic growthcapabilities of the region.

South KoreaSamsung Electronics 47,909 18,116,764 6.44Samsung SDI 119,880 14,122,450 5.02Hyundai Mobis 154,770 8,318,247 2.96Daewoo Shipbuilding & Marine Engineering 235,880 3,026,004 1.08Hyundai Department Store 92,440 3,015,064 1.07Daishin Securities 196,270 2,879,910 1.02Orion 34,910 2,558,281 0.91Hankook Tire 307,890 2,323,406 0.83Honam Petrochemical 43,330 2,234,348 0.79Kookmin Bank 57,590 2,156,034 0.77Good Morning Shinhan Securities 461,970 2,130,411 0.76SK Telecom 12,470 2,080,686 0.74Samsung Electronics Pfd 9,880 2,033,740 0.72Shinhan Financial Group 121,850 1,946,290 0.69Daishin Securities Pfd 195,350 1,400,446 0.50STX Shipbuilding 96,710 1,285,250 0.46KT&G 71,300 1,237,505 0.44LG Investment & Securities 157,180 1,093,862 0.39Cheil Industries 60,150 872,507 0.31STX 106,570 817,604 0.29POSCO 5,200 710,686 0.25Hyundai Mipo Dockyard 48,080 592,610 0.21Handsome 44,990 456,445 0.16LG Card 34,682 88,548 0.03Hyundai Mipo Dockyard 14,226 60,833 0.02

Total for South Korea 26.86

Hong KongCheung Kong Holdings 1,051,000 8,359,750 2.97Henderson Land Development 1,146,000 5,063,285 1.80Cathay Pacific Airways 2,344,000 4,453,518 1.58Esprit Holdings 1,333,000 4,438,583 1.58Hysan Development 2,738,000 4,232,221 1.50Techtronic Industries 1,306,000 3,625,301 1.29Bank of East Asia 984,000 3,022,993 1.07Swire Pacific 'A' 467,000 2,881,416 1.02Great Eagle Holdings 2,069,000 2,478,546 0.88Hong Kong Land Holdings 1,322,000 2,247,400 0.80Li & Fung 1,108,000 1,898,213 0.67TPV Technology 3,441,000 1,823,261 0.65Orient Overseas International 542,000 1,665,104 0.59Grande Holdings 1,057,000 1,354,727 0.48Johnson Electric Holdings 1,007,200 1,284,413 0.46New World Development 1,582,000 1,273,621 0.45Television Broadcasts 242,000 1,221,955 0.43Fountain SET Holdings 1,291,000 881,365 0.31Hongkong Electric Holdings 204,000 806,719 0.29Shougang Concord Century 5,199,000 763,446 0.27tom.com 2,428,000 750,609 0.27CITIC International Financial Holdings 1,279,000 691,948 0.25Hong Kong & China Gas 361,000 551,035 0.20CLP Holdings 110,500 526,645 0.19Hopewell Highway Infrastructure 910,000 515,760 0.18Moulin International 538,000 356,897 0.14Industrial & Commercial Bank of China 2,000 2,769 0.00

Total for Hong Kong 20.32

TaiwanTaiwan Semiconductor Manufacturing 3,349,841 6,267,381 2.23Waffer Technology 1,231,000 3,753,933 1.33Ya Hsin Industrial 2,753,000 3,560,893 1.27Hon Hai Precision Industry 853,440 3,356,931 1.19Asia Optical 354,400 2,443,418 0.87Taiwan Cement 4,901,600 2,411,807 0.86MediaTek 242,000 2,274,543 0.81

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48.67%49.43% 47.18% 44.51%

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Marketvalue

% of netassetsHoldingInvestment

Statement of investmentsTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin US dollars.

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

Change in net asset value per shareFor the year ended 31 December 2003

Fund (net of expenses) Class I shares

Fund (net of expenses) Class A shares

Fund (net of expenses) Class B shares

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


Asian Equity Fund

ChinaCNOOC 1,911,000 3,741,605 1.33Asia Aluminum Holdings 15,810,000 3,136,218 1.11Huaneng Power International 'H' 972,000 1,684,000 0.60China Life Insurance 'H' 1,905,000 1,558,197 0.55China Oilfield Services 'H' 4,322,000 1,530,986 0.54Byd 'H' 482,000 1,269,679 0.45China Merchants Holdings International 788,000 1,040,408 0.37Kingboard Chemicals 617,000 949,744 0.34PetroChina 'H' 1,184,000 678,680 0.24China Petroleum & Chemical 'H' 1,502,000 672,324 0.24AviChina Industry & Technology 'H' 2,946,000 622,344 0.22Victory City International 1,384,000 606,134 0.22PICC Property & Casualty 'H' 1,152,000 515,657 0.19China Resources Power Holdings 1,060,000 494,957 0.18Norstar Founders Group 811,000 261,165 0.09Lianhua Supermarket Holdings 'H' 156,000 164,775 0.06Wumart Stores 'H' 153,000 149,782 0.05

Total for China 6.78

IndonesiaPT Astra International 6,701,615 3,978,400 1.41PT Telekomunikasi 2,682,500 2,149,822 0.76PT Bumi Resources 34,042,000 2,020,896 0.72PT Ramayana Lestari Sentosa 3,462,500 1,788,290 0.64PT Bank Mandiri Persero 9,550,000 1,133,868 0.40PT Bank Central Asia 2,547,500 1,005,692 0.36PT Indocement Tunggal Prakarsa 3,802,500 959,372 0.34Bank Rakyat Indonesia 4,762,500 706,812 0.25

Total for Indonesia 4.88

MalaysiaSP Setia 1,401,500 1,290,855 0.46Magnum 1,547,000 1,131,753 0.40Resorts World 409,000 1,087,079 0.39Commerce Asset Holdings 814,000 878,263 0.31Tanjong 234,000 665,053 0.24Malayan Banking 259,600 659,247 0.23YTL 548,000 622,989 0.22Astro All Asia Networks 296,000 344,295 0.12

Total for Malaysia 2.37

Total Investment Securities 274,625,468 97.61

Total NAV 281,339,773 100.00

Marketvalue


MarketvalueHoldingInvestment

Statement of investments (continued)Transferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin US dollars.

Taiwan (continued)Largan Precision 227,010 2,207,227 0.78Evergreen Marine 2,217,120 1,933,611 0.69Chinatrust Financial Holding 1,745,536 1,753,765 0.62Polaris Securities 3,691,880 1,729,549 0.61Nan Ya Plastics 1,186,320 1,712,719 0.61Zyxel Communications 745,300 1,559,113 0.55Taiwan Cellular 1,718,000 1,493,253 0.53Taishin Financial Holdings 1,822,000 1,347,443 0.48Infortrend Technology 381,800 1,254,293 0.45Taiwan Navigation 1,726,000 1,144,225 0.41Chaun-Choung Technology 600,000 1,140,247 0.41CTCI 1,406,000 1,139,216 0.40Acer 744,008 1,107,024 0.39Eva Airways 2,588,268 1,056,202 0.38Yuanta Core Pacific Securities 1,693,600 1,012,966 0.36Phoenixtec Power 802,765 941,368 0.33Fubon Financial Holding 929,000 889,585 0.32Novatek Microelectronics 248,200 702,039 0.25Asia Vital Components 578,000 688,014 0.24Catcher Technology 183,000 660,504 0.23Cyberlink 150,000 618,739 0.22Sunplus Technology 259,000 484,576 0.18Kaulin Manufacturing 306,000 443,583 0.16

Total for Taiwan 18.16

SingaporeSingapore Airlines 916,000 6,039,975 2.15Oversea-Chinese Banking 685,000 4,879,750 1.73CapitaLand 3,142,000 2,867,210 1.02Venture 221,000 2,602,220 0.92Neptune Orient Lines 1,811,000 2,303,000 0.82City Developments 588,000 2,094,375 0.74Wing Tai Holdings 3,586,000 1,752,306 0.62United Overseas Bank 170,048 1,321,500 0.47SembCorp Industries 1,668,000 1,237,338 0.44Huan Hsin Holdings 1,369,000 910,759 0.32YHI International 1,146,000 809,632 0.29Sembcorp Logistics 452,600 532,925 0.20Seksun 584,000 429,778 0.15Unisteel Technology 361,000 269,918 0.10Celestial Nutrifoods 1,120,000 184,628 0.07

Total for Singapore 10.04

ThailandBangkok Bank Public (F) 1,829,200 5,312,071 1.89Italian-Thai Development (F) 644,000 2,244,242 0.80Kasikornbank (F) 1,207,300 2,134,116 0.75Siam Cement 'NVDR' 307,500 1,972,348 0.70Land & House Public (F) 4,650,800 1,491,544 0.53Siam Commercial Bank (F) 1,034,700 1,410,955 0.50Siam Cement (F) 198,500 1,383,485 0.49PTT (F) 245,200 1,145,505 0.41Kasikornbank 'NVDR' 643,800 1,056,742 0.38Thai Airways International (F) 644,000 744,015 0.26Thai Plastic & Chemical (F) 136,300 674,616 0.24Ratchaburi Electricity Generating Holding (F) 435,700 539,124 0.19Sino Thai Engineering & Construction (F) 943,500 490,811 0.17Banpu (F) Regd 143,100 462,545 0.16CP Seven Eleven (F) 300,600 425,091 0.15Asian Property Development 2,646,300 384,248 0.14Bangkok Bank Public 'NVDR' 132,200 363,884 0.13Thai Olefins (F) 179,100 330,159 0.12Modernform Group (F) 276,400 253,018 0.09Union Mosaic (F) 135,500 239,520 0.09MBK Foreign 11,900 15,176 0.01

Total for Thailand 8.20

% of netassets


Asian Property Fund

Investment aimsTo seek long-term capital appreciation, measured in US dollars,through investment in the equity securities of companies in theAsian real estate industry.

Hong KongHenderson Land Development 148,000 653,897 9.85Sun Hung Kai Properties 77,000 637,261 9.61Wharf (Holdings) 115,000 318,486 4.80Hang Lung Properties 180,000 230,701 3.48Hong Kong Land Holdings 132,000 224,400 3.38New World Development 269,000 216,564 3.26Kerry Properties 136,507 178,474 2.69Hysan Development 101,118 156,302 2.36Sino Land 262,078 149,382 2.25Cheung Kong Holdings 8,000 63,633 0.96Great Eagle Holdings 26,000 31,146 0.47


JapanMitsubishi Estate 69,000 655,760 9.88Mitsui Fudosan 65,000 588,560 8.87Sumitomo Realty & Development 31,000 273,738 4.13Nippon Building Fund 12 77,227 1.16Japan Real Estate Investment 10 63,421 0.96Japan Retail Fund Investment 7 45,115 0.68

Total for Japan 25.68

AustraliaWestfield Trust 107,792 288,169 4.34Stockland 60,813 238,384 3.59General Property Trust 92,699 208,141 3.14Investa Property Group 120,212 176,935 2.67Westfield Holdings 13,250 139,003 2.10Mirvac Group 32,403 105,119 1.58CFS Gandel Retail Trust 100,200 100,829 1.52Centro Properties Group 29,259 87,449 1.32Macquarie Goodman Industrial Trust 23,900 30,332 0.46Deutsche Office Trust 35,600 29,407 0.44Stockland 'New' 1,321 5,258 0.08

Total for Australia 21.24

SingaporeCapitaLand 150,000 136,881 2.06Wing Tai Holdings 174,000 85,025 1.28Fortune Real Estate Investment Trust 117,000 73,847 1.11City Developments 12,000 42,742 0.64Keppel Land 43,000 39,999 0.61United Overseas Land 29,000 32,781 0.50


ThailandLand & House Public (F) 288,600 92,556 1.40



Total NAV 6,634,396 100.00

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40.84%41.55% 40.00% 47.43%

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


Competitive Edge “Best Ideas” Fund

Investment aims

United States of AmericaExxon Mobil 33,000 1,342,440 2.68General Electric 43,000 1,320,960 2.63Oracle 100,000 1,320,000 2.633M 15,600 1,314,768 2.62Cisco Systems 54,000 1,311,660 2.62Citigroup 27,000 1,307,610 2.61Dow Chemical 31,800 1,305,708 2.60Schlumberger 23,500 1,305,190 2.60Abbott Laboratories 28,000 1,303,960 2.60American International Group 19,700 1,300,594 2.59General Dynamics 14,300 1,288,573 2.57Ecolab 47,000 1,283,100 2.56MBNA 52,000 1,276,600 2.55Chubb 18,600 1,264,800 2.52PepsiCo 27,100 1,263,402 2.52State Street 24,000 1,253,040 2.50Microsoft 44,200 1,217,268 2.43Lockheed Martin 23,800 1,206,660 2.41Home Depot 34,000 1,199,860 2.39Medtronic 24,200 1,183,622 2.36Wal-Mart Stores 21,900 1,155,882 2.31Allergan 15,000 1,143,150 2.28Merck & Co 22,600 1,028,300 2.05Dow Jones & Co 19,100 958,247 1.92Weatherford International 25,000 912,250 1.82

Total for United States of America 61.37

United KingdomHSBC Holdings (HK Regd) 85,000 1,341,247 2.68BP ADR 27,000 1,325,160 2.64Diageo 100,000 1,310,667 2.61AstraZeneca ADR 25,500 1,235,475 2.47

Total for United Kingdom 10.40

SwitzerlandUBS Regd 19,500 1,319,955 2.63Novartis ADR 29,000 1,307,900 2.61

Total for Switzerland 5.24

JapanHonda Motor 30,000 1,335,766 2.66Canon 26,000 1,213,601 2.43


FranceGroupe Danone 8,000 1,292,871 2.58Total 6,400 1,180,325 2.35

Total for France 4.93

IrelandCRH 64,500 1,321,266 2.64

Total for Ireland 2.64

CanadaSuncor Energy 52,500 1,311,450 2.62

Total for Canada 2.62

GermanyBayerische Motoren Werke 27,000 1,250,830 2.50

Total for Germany 2.50

Marketvalue




To seek long-term capital growth, measured in US dollars, byinvesting 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 MorganStanley Equity Research.


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35

22.30%23.18% 21.07% 34.64%

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MSCI All Country World Free Index (expressed in US dollars)


Competitive Edge “Best Ideas” Fund



AustraliaNews Corp ADR Pfd vtg 42,000 1,245,300 2.48


NetherlandsHeineken 31,200 1,205,093 2.40

Total for Netherlands 2.40


Total NAV 50,131,399 100.00

% of netassets


Emerging Europe & Middle East Equity Fund*

Investment aimsTo seek long-term capital appreciation, measured in Euro, byinvesting primarily in equity securities of issuers in Central,Eastern and Southern Europe (including the Russian Federation)as well as the Middle East.

Russian FederationLUKOIL ADR 21,233 1,564,396 8.44JSC MMC Norilsk Nickel ADR 26,340 1,397,863 7.54OAO Gazprom ADR 50,462 1,028,775 5.55Surgutneftegaz ADR Pfd 30,717 946,048 5.10Surgutneftegaz ADR 22,431 523,141 2.82Mobile Telesystems ADR 6,800 428,574 2.31Peter Hambro Mining 26,777 156,650 0.85Yukos ADR 3,441 115,191 0.63Surgutneftegaz ADR Pfd 3,071 93,666 0.51Wimm-Bill-Dann Foods ADR 6,200 82,677 0.45Surgutneftegaz ADR 3,009 70,411 0.38Yukos ADR 1,659 55,543 0.30

Total for Russian Federation 34.88

TurkeyTurkiye Garanti Bankasi 218,483,000 510,665 2.75Enka Insaat ve Sanayi 24,003,248 499,830 2.69Turkiye Is Bankasi 'C' 130,392,592 413,748 2.23Yapi ve Kredi Bankasi 234,019,000 377,912 2.04Turkcell Iletisim Hizmet 44,702,300 352,078 1.90Dogan Yayin Holding 113,402,100 346,984 1.87Akcansa Cimento 146,703,098 336,658 1.82Akbank 77,186,710 321,458 1.74Hurriyet Gazetecilik ve Matbaacilik 113,446,200 318,192 1.72Anadolu Cam Sanayii 161,734,220 222,691 1.20Trakya CAM Sanayii 122,256,742 214,748 1.16Tofas Turk Otomobil Fabrikasi 119,719,940 210,292 1.14Turkcell Iletisim Hizmet ADR 10,300 205,085 1.11Aksigorta 69,924,910 183,248 0.99Arcelik 30,533,592 134,948 0.73Carsi Buyuk Magazacilik 66,077,600 74,133 0.40

Total for Turkey 25.49

IsraelCheck Point Software Technologies 60,125 809,393 4.37Israel Chemicals 248,900 285,878 1.54Delta-Galil Industries ADR 19,000 237,402 1.28Teva Pharmaceutical Industries ADR 3,600 163,522 0.89

Total for Israel 8.08

EgyptOrascom Construction Industries 51,261 481,048 2.60MobiNil - Egyptian Mobile Services 43,264 419,407 2.26Oriental Weavers 22,200 168,400 0.91Orascom Hotel Holding 239,495 123,167 0.66

Total for Egypt 6.43

HungaryGedeon Richter 12,727 1,191,459 6.43

Total for Hungary 6.43

OmanNational Bank Of Oman 81,200 453,424 2.45Salalah Port Services 61,500 449,865 2.43

Total for Oman 4.88

Czech RepublicCesky Telecom 48,484 435,076 2.35Cesky Telecom GDR Reg S 8,511 75,955 0.41

Total for Czech Republic 2.76

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46.95%47.78% 46.05% 37.92%

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Statement of investmentsTransferable securities admitted to official exchange listing or dealt in on another regulated market. As at 31 December 2003, expressedin Euro.



* Fund renamed and investment objective changed on 2 May 2003 (formerly known asEmerging Europe Fund). Prior to that date, the Fund’s investment aim was: “To seek capitalgrowth, measured in Euro, through investment primarily in equity securities of companies thathave their principal activities in Central, Eastern and Southern European countries. The Fundmay also invest in equity, equity-linked and debt securities of companies in the Middle East,North Africa and states of the former Soviet Union.”.




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


Emerging Europe & Middle East Equity Fund


Statement of investments (continued)Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 31 December 2003, expressedin Euro.

% of netassets

JordaniaArab Bank 1,460 498,229 2.69

Total for Jordania 2.69

LebanonSolidere GDR 108,455 428,021 2.31

Total for Lebanon 2.31

PolandBank Pekao 11,357 261,923 1.41Polski Koncern Naftwovy Orlen 12,675 67,355 0.36Polski Koncern Naftowy Orlen GDR 3,000 32,009 0.18

Total for Poland 1.95


Total NAV 18,527,224 100.00


Emerging Markets Equity Fund

Investment aimsTo seek to maximise total return, measured in US dollars, throughinvestment primarily in emerging country equity securities. TheFund will invest in those emerging market countries in which theCompany believes that economies are developing strongly and inwhich the markets are becoming more sophisticated.

South KoreaSamsung Electronics 53,140 20,094,864 4.97Samsung SDI 94,230 11,100,755 2.74Hyundai Mobis 99,370 5,340,726 1.32Hyundai Department Store 92,330 3,011,476 0.75Daewoo Shipbuilding & Marine Engineering 218,930 2,808,560 0.70Samsung Electronics Pfd 9,880 2,033,740 0.50Honam Petrochemical 38,270 1,973,425 0.49Daishin Securities 127,470 1,870,394 0.46Kookmin Bank 49,830 1,865,518 0.46SK Telecom 10,770 1,797,032 0.45Hankook Tire 202,700 1,529,619 0.38KT&G 82,760 1,436,408 0.36Orion 19,560 1,433,400 0.36Handsome 139,960 1,419,961 0.35STX Shipbuilding 96,700 1,285,117 0.32Shinhan Financial Group 75,560 1,206,907 0.30LG Investment & Securities 155,490 1,082,100 0.27Cheil Industries 68,220 989,566 0.25Good Morning Shinhan Securities 163,540 754,178 0.19POSCO 3,073 419,988 0.10Daishin Securities Pfd 39,020 279,731 0.07LG Card 30,718 78,427 0.02STX 6,600 50,635 0.01


South AfricaAnglo American (ZAR) 429,946 9,294,373 2.30Standard Bank Group 1,010,359 5,984,258 1.48Anglo American (GBP) 260,201 5,594,910 1.39Telkom 442,520 4,645,958 1.15MTN Group 987,150 4,245,566 1.05FirstRand 2,915,040 3,930,787 0.97Impala Platinum Holdings 37,969 3,329,104 0.82Gold Fields 221,400 3,196,327 0.79African Bank Investments 1,864,800 2,661,181 0.66African Life Assurance 890,400 2,059,429 0.51Anglo American Platinum 32,300 1,423,348 0.35ABSA Group 219,200 1,396,385 0.35Anglogold ADR 28,289 1,332,412 0.33Anglogold 26,477 1,256,767 0.31Edgars Consolidated Stores 58,000 1,117,914 0.28Naspers 'N' 166,400 1,044,434 0.26Massmart Holdings 214,025 986,812 0.24Shoprite Holdings 644,300 910,689 0.23Steinhoff International Holdings 658,600 761,646 0.19Harmony Gold Mining 42,800 702,011 0.17Telkom ADR 13,300 573,230 0.14Pretoria Portland Cement 3,400 73,757 0.02

Total for South Africa 13.99

TaiwanMediaTek 311,000 2,923,070 0.72Hon Hai Precision Industry 724,060 2,848,026 0.71Asia Optical 394,800 2,721,956 0.67Ya Hsin Industrial 1,991,000 2,575,277 0.64Taiwan Cement 4,926,300 2,423,960 0.60Chinatrust Financial Holding 2,399,038 2,410,348 0.60Evergreen Marine 2,168,060 1,890,824 0.47Polaris Securities 3,968,840 1,859,298 0.46Largan Precision 162,360 1,578,633 0.39Waffer Technology 475,000 1,448,512 0.36Fubon Financial Holding 1,438,000 1,376,989 0.34Nan Ya Plastics 949,000 1,370,094 0.34Phoenixtec Power 1,143,510 1,340,946 0.33Acer 871,245 1,296,343 0.32Taishin Financial Holdings 1,607,000 1,188,441 0.29Taiwan Cellular 1,356,000 1,178,609 0.29

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54.01%54.86% 53.08% 55.82%

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Marketvalue








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



TurkeyTurkiye Is Bankasi 'C' 969,172,864 3,876,691 0.95Turkiye Garanti Bankasi 1,087,808,000 3,205,149 0.79Hurriyet Gazetecilik ve Matbaacilik 703,232,700 2,486,430 0.62Turkcell Iletisim Hizmet 243,024,900 2,412,890 0.60Akbank 422,239,880 2,216,759 0.55Arcelik 359,789,250 2,004,540 0.50Akcansa Cimento 571,338,100 1,652,800 0.41Enka Insaat ve Sanayi 62,625,845 1,643,928 0.41Yapi ve Kredi Bankasi 628,833,000 1,280,124 0.32Tofas Turk Otomobil Fabrikasi 569,553,617 1,261,154 0.31Trakya CAM Sanayii 386,447,367 855,705 0.21Migros Turk TAS 24,019,000 346,560 0.09Ford Otomotive Sanayii 30,503,000 203,716 0.05


IndiaInfosys Technologies 19,304 2,357,109 0.58Bharat Heavy Electricals 197,400 2,200,578 0.55Morgan Stanley Growth Fund 5,372,744 1,989,206 0.49Tata Motors 167,400 1,661,693 0.41Ranbaxy Laboratories 50,580 1,219,071 0.30Reliance Industries 96,750 1,216,674 0.30Container Corporation Of India 80,365 1,173,684 0.29Oil & Natural Gas 64,985 1,140,250 0.28Tata Iron & Steel 117,000 1,140,214 0.28Hero Honda Motors 99,175 976,949 0.24Gujarat Ambuja Cements 146,500 976,935 0.24Steel Authority of India 807,139 905,186 0.22ITC 41,000 885,911 0.22Hindalco Industries 28,329 875,578 0.22Industrial Development Bank of India 627,000 854,531 0.21Hindustan Petroleum 85,000 816,142 0.20Hindustan Lever 178,000 799,662 0.20GlaxoSmithKline Pharmaceuticals 41,000 517,438 0.14Colgate-Palmolive 114,347 400,647 0.10

Total for India 5.47

ChinaCNOOC 2,408,000 4,714,696 1.17China Life Insurance 'H' 2,673,000 2,186,383 0.54China Oilfield Services 'H' 5,300,000 1,877,423 0.46Byd 'H' 626,000 1,649,002 0.41China Petroleum & Chemical 'H' 3,502,000 1,567,562 0.39China Shipping Development 'H' 2,006,000 1,485,773 0.37Huaneng Power International 'H' 854,000 1,479,564 0.37PetroChina 'H' 2,146,000 1,230,108 0.30China Telecom 'H' 2,165,000 892,404 0.22Kingboard Chemicals Holdings 530,000 815,826 0.20China Merchants Holdings International 614,000 810,673 0.20AviChina Industry & Technology 'H' 3,008,000 635,441 0.16Asia Aluminum Holdings 2,614,000 518,537 0.13PICC Property & Casualty 'H' 1,038,000 464,628 0.12China Resources Power Holdings 955,000 445,928 0.11Norstar Founders Group 1,045,000 336,519 0.08Victory City International Holdings 591,000 258,833 0.06Lianhua Supermarket Holdings 'H' 145,000 153,157 0.04Wumart Stores 'H' 140,000 137,055 0.03

Total for China 5.36

ThailandBangkok Bank Public (F) 1,818,400 5,280,707 1.31Siam Cement 'NVDR' 447,300 2,869,045 0.71Italian-Thai Development (F) 640,500 2,232,045 0.55Land & House Public (F) 6,090,500 1,953,266 0.48Kasikornbank (F) 1,051,200 1,858,182 0.46Kasikornbank 'NVDR' 898,900 1,475,467 0.37

Marketvalue




Taiwan (continued)Taiwan Semiconductor Manufacturing 603,865 1,129,800 0.28Infortrend Technology 340,400 1,118,285 0.28CTCI 1,227,000 994,181 0.25Novatek Microelectronics 306,150 865,952 0.21Yuanta Core Pacific Securities 1,445,251 864,425 0.21Cyberlink 196,000 808,486 0.20Taiwan Navigation 1,216,720 806,606 0.20Catcher Technology 197,000 711,034 0.18Sunplus Technology 367,000 686,638 0.17Eva Airways 1,600,206 653,001 0.16Zyxel Communications 282,900 591,806 0.15Kaulin Manufacturing 352,000 510,265 0.13Grand Hall Enterprise 55,000 254,420 0.06Pihsiang Machinery Manufacturing 65,100 226,335 0.06

Total for Taiwan 10.07

BrazilCompanhia Vale do Rio Doce ADR Pfd 'A' 105,444 5,398,733 1.34Petroleo Brasileiro ADR 178,515 5,189,431 1.29Companhia de Bebidas das Americas ADR Pfd 186,475 4,753,248 1.18Petroleo Brasileiro ADR Pfd 173,717 4,615,661 1.14Banco Itau Holding Financeira ADR Pfd 52,789 2,573,992 0.64Votorantim Celulose e Papel ADR Pfd 56,100 1,783,419 0.44Aracruz Celulose ADR Pfd 'B' 47,500 1,704,775 0.42Unibanco GDR 69,200 1,700,244 0.42Companhia Siderurgica Nacional ADR 26,200 1,404,582 0.35Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR Pfd 48,100 1,168,830 0.29Banco Bradesco ADR Pfd 40,788 1,072,724 0.27Companhia Energetica de Minas Gerais ADR non-vtg Pfd 57,700 1,060,526 0.26Telesp Celular Participaçoes Pfd 376,275,000 981,531 0.24Companhia Energetica de Minas Gerais Pfd 42,372,000 770,201 0.19Companhia Vale do Rio Doce ADR 12,700 739,775 0.18Banco Bradesco Pfd 119,566,000 626,259 0.16Telesp Celular Participaçoes ADR Pfd 81,100 530,394 0.13Banco Itau Holding Financeira Pfd 3,354,608 331,762 0.08Petroleo Brasileiro Pfd 9,476 249,472 0.06

Total for Brazil 9.08

Russian FederationJSC MMC Norilsk Nickel ADR 142,500 9,533,250 2.35LUKOIL ADR 65,438 6,077,751 1.50Surgutneftegaz ADR 195,728 5,754,403 1.43OAO Gazprom ADR 124,400 3,197,080 0.79Mobile Telesystems ADR 22,200 1,763,790 0.44Mobile Telesystems GDR 19,100 1,517,495 0.38Surgutneftegaz ADR Pfd 27,028 1,049,362 0.26Yukos ADR 12,974 547,566 0.14


MexicoAmerica Movil ADR 'L' 283,977 7,744,053 1.92Telefonos de Mexico ADR 'L' 183,282 6,073,966 1.50Wal-Mart de Mexico 'V' 1,223,544 3,496,619 0.87Grupo Televisa ADR 60,900 2,438,436 0.60Grupo Financiero BBVA Bancomer 'B' 2,469,081 2,095,258 0.52Cemex ADR 'CPO' 70,000 1,841,000 0.46Grupo Aeroportuario del Sureste ADR 'B' 55,300 956,690 0.24Coca-Cola Femsa ADR 'L' 29,100 616,047 0.15Grupo Financiero BBVA Bancomer ADR 28,300 486,760 0.12Wal-Mart de Mexico 'C' 109,922 296,692 0.07Wal-Mart de Mexico ADR 'V' 9,506 271,396 0.07Cemex 'CPO' 24,600 129,178 0.03

Total for Mexico 6.55

% of netassets



PeruCompanhia de Minas Buenaventura ADR 93,900 2,671,455 0.66

Total for Peru 0.66

VenezuelaCompania Anonima Nacional Telefonos de Venezuela ADR 'D' 62,438 967,165 0.24

Total for Venezuela 0.24

ArgentinaTenaris ADR 24,200 797,874 0.20Sociedad Comercial del Plata 20 4 0.00Renault Argentina 1 1 0.00

Total for Argentina 0.20

Total transferable securities admitted to official exchange listing or dealt in on another regulated market 94.72

Other transferable securities not admitted to official exchange listing ordealt in on another regulated market. As at 31 December 2003,expressed in US dollars.

IndiaState Bank of India (1) 120,970 1,620,279 0.40

Total for India 0.40

Russian FederationMustcom CV Ser144A 0% /2025 (1) 6,651,637 1,529,876 0.38Alliance Cellulose (1) 50,000 0 0.00


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


Total other transferable securities not admitted to official exchange listing or dealt in on another regulated market 0.78


Total NAV 403,760,221 100.00

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

Marketvalue




Thailand (continued)Siam Commercial Bank (F) 821,700 1,120,500 0.28PTT (F) 219,900 1,027,311 0.25Thai Airways International (F) 546,900 631,835 0.16Ratchaburi Electricity Generating Holding (F) 385,900 477,503 0.12Thai Plastic & Chemical (F) 88,000 435,556 0.11Sino Thai Engineering & Construction (F) 818,700 425,889 0.11Banpu (F) Regd 124,100 401,131 0.10BEC World Public (F) 67,700 386,369 0.10CP Seven Eleven (F) 270,800 382,950 0.09Thai Olefins (F) 161,400 297,530 0.07Asian Property Development 2,032,000 295,051 0.07MBK (F) 10,300 13,135 0.00


IndonesiaPT Astra International 4,072,461 2,417,608 0.60PT Telekomunikasi 2,921,000 2,340,962 0.58PT Ramayana Lestari Sentosa 3,160,500 1,632,315 0.40PT Bumi Resources 23,437,500 1,391,362 0.34PT Bank Central Asia 2,564,000 1,012,205 0.25PT HM Sampoerna 1,741,500 925,285 0.23PT Indocement Tunggal Prakarsa 3,619,500 913,201 0.23Bank Rakyat Indonesia 6,124,000 908,875 0.23PT Bank Mandiri Persero 6,011,500 713,743 0.18


Hong KongTPV Technology 2,876,000 1,523,888 0.38Fountain SET Holdings 1,459,000 996,058 0.25China Unicom 990,000 924,542 0.23Hopewell Highway Infrastructure 1,620,000 918,166 0.23Shougang Concord Century Holding 4,579,000 672,402 0.17Grande Holdings 512,000 656,216 0.16Moulin International Holding 434,000 287,906 0.07


MalaysiaMagnum 1,743,000 1,275,142 0.32Malayan Banking 484,000 1,229,105 0.30SP Setia 874,499 805,460 0.20Resorts World 267,000 709,658 0.18Commerce Asset Holdings 643,000 693,763 0.17YTL 504,000 572,968 0.14Astro All Asia Networks 268,000 311,726 0.08


EgyptOrascom Construction Industries 252,266 2,984,262 0.74MobiNil - Egyptian Mobile Services 142,188 1,737,597 0.43

Total for Egypt 1.17

IsraelCheck Point Software Technologies 219,702 3,728,343 0.92ECI Telecom 91,698 530,014 0.13Elbit Systems 1 12 0.00


HungaryGedeon Richter 21,813 2,574,221 0.64Matav ADR 12,435 241,861 0.06


% of netassets


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

FranceUnibail 23,871 1,779,583 9.51Gecina 13,266 1,538,856 8.23Klepierre 13,865 654,705 3.50Société Foncière Lyonnaise 15,907 544,019 2.91Sophia (ex-SFI) 12,836 524,992 2.81SILIC (Société Immobilière de Location pour l'Industrie et le Commerce) 6,008 313,618 1.68Bail Investissement 10,609 254,086 1.36Bail Investissement 1 185 0.00


NetherlandsRodamco Europe 39,537 1,822,656 9.75Eurocommercial Properties 49,226 1,026,362 5.49Corio 26,375 809,185 4.33Wereldhave 13,420 793,793 4.24AM 91,951 569,177 3.04Vastned 8,700 371,490 1.99


ItalyBeni Stabili 1,806,236 937,436 5.01Aedes 186,547 626,798 3.35Pirelli & C Real Estate 9,883 248,953 1.34

Total for Italy 9.70

SpainMetrovacesa 23,998 651,546 3.48Inmobiliaria Urbis 45,121 354,200 1.89Inmobiliaria Colonial 12,537 238,203 1.28

Total for Spain 6.65

SwedenJM 31,526 368,209 1.97Drott 'B' 11,558 173,834 0.93Castellum 9,142 171,242 0.92Wihlborgs Fastigheter 12,913 131,610 0.70Hufvudstaden 'A' 9,260 35,405 0.19

Total for Sweden 4.71

SwitzerlandPSP Swiss Property 5,784 649,269 3.47Allreal Holding 1,600 95,703 0.51


FinlandSponda 105,806 699,378 3.74

Total for Finland 3.74

BelgiumCofinimmo 4,920 539,232 2.88

Total for Belgium 2.88

GermanyIVG Immobilien 49,725 460,951 2.46


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8

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18.07%18.76% 17.10% 19.49%

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Marketvalue


Statement of investmentsTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Euro.



Europe ex UK Property Fund




EPRA ex UK Index (expressed in Euro)


Europe ex UK Property Fund



NorwaySteen & Strom 15,297 230,646 1.23

Total for Norway 1.23


Total NAV 18,701,745 100.00

% of netassets


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

United KingdomGlaxoSmithKline 534,939 9,706,718 4.34Vodafone Group 3,837,011 7,517,909 3.36HSBC Holdings 592,668 7,398,177 3.31Royal Bank of Scotland Group 279,421 6,518,860 2.92Barclays 634,780 4,478,771 2.00BP 525,889 3,372,652 1.51National Grid Transco 541,112 3,073,623 1.37Shell Transport & Trading 492,987 2,906,757 1.30Amvescap 502,345 2,880,103 1.29Smiths Group 273,971 2,553,580 1.14Prudential 352,669 2,349,174 1.05BOC Group 189,868 2,287,577 1.02Cadbury Schweppes 384,218 2,238,383 1.00BT Group 750,906 1,994,371 0.893i Group 211,696 1,859,188 0.83Intercontinental Hotels Group 247,172 1,851,896 0.83MFI Furniture 832,115 1,768,046 0.79Vedanta Resources 335,992 1,737,164 0.78Rentokil Initial 600,917 1,617,287 0.72WPP Group 191,708 1,494,915 0.67Pearson 165,272 1,456,159 0.65Standard Chartered 108,651 1,420,728 0.64ARM Holdings 634,752 1,155,384 0.52Corus Group 2,356,704 1,009,833 0.45Rolls-Royce Group 381,766 958,523 0.43Marks & Spencer Group 227,081 928,960 0.42


SwitzerlandUBS Regd 127,380 6,920,588 3.10Nestlé Regd 32,581 6,457,750 2.89Novartis Regd 154,628 5,569,244 2.49Roche Holding 'Genußschein' 49,718 3,978,437 1.77Syngenta 48,517 2,592,372 1.16Holcim Regd 62,045 2,292,385 1.03Swiss Re Regd 41,153 2,204,176 0.99Adecco Regd 38,837 1,980,483 0.89Compagnie Financiere Richemont 'A' 89,761 1,710,025 0.76Zürich Financial Services 9,263 1,057,621 0.47Converium Holding 24,814 1,046,528 0.47


GermanySiemens 63,751 4,048,188 1.81BASF 78,713 3,509,026 1.57DaimlerChrysler Regd 89,535 3,312,795 1.48Porsche Pfd 6,970 3,279,524 1.47Deutsche Telekom Regd 225,928 3,278,215 1.47Deutsche Bank Regd 48,706 3,199,984 1.43SAP 22,991 3,061,252 1.37E.ON 55,787 2,886,419 1.29Volkswagen 37,599 1,659,996 0.74Deutsche Lufthansa 92,941 1,231,468 0.55Linde 25,134 1,073,222 0.48Infineon Technologies 92,748 1,022,083 0.46


NetherlandsRoyal Dutch Petroleum 163,345 6,818,020 3.05Koninklijke Philips Electronics 207,479 4,830,111 2.16ING Groep 'CVA' 219,056 4,019,678 1.80Unilever 'CVA' 54,210 2,791,815 1.25VNU 96,008 2,389,639 1.07

0

3

6

9

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18

6.56%7.13% 5.30% 15.26%

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Marketvalue





European Equity Fund




MSCI Europe (Net) Index (expressed in Euro)


European Equity Fund



Netherlands (continued)Wolters Kluwer 'CVA' 162,495 2,014,938 0.90ABN Amro Holding 62,117 1,155,376 0.52ASML Holding 51,094 812,906 0.36


FranceTotal 44,102 6,452,123 2.88BNP Paribas 91,145 4,501,652 2.01STMicroelectronics 127,550 2,727,019 1.22Schneider Electric 44,315 2,293,301 1.03Aventis 37,254 1,937,208 0.87Carrefour 35,501 1,521,218 0.68European Aeronautic Defense and Space 75,219 1,416,374 0.63Axa 83,021 1,405,546 0.63streetTRACKS ETF - streetTRACKS MSCI Pan Euro ETF 13,549 1,127,954 0.50Cap Gemini 30,779 1,088,653 0.49


ItalyTelecom Italia 1,670,964 3,926,765 1.75UniCredito Italiano 771,378 3,301,498 1.48ENI 169,822 2,540,537 1.14


SpainTelefonica 230,596 2,684,137 1.20Banco Santander Central Hispano 256,985 2,413,089 1.08Banco Bilbao Vizcaya Argentaria 166,889 1,827,435 0.82Amadeus Global Travel Distribution 'A' 287,107 1,478,601 0.66


FinlandNokia 379,856 5,207,826 2.33Stora Enso 'R' 158,073 1,688,220 0.75


SwedenVolvo 'B' 49,662 1,203,836 0.54Assa Abloy 'B' 91,768 864,525 0.39Securitas 'B' 64,560 690,010 0.30


NorwayTelenor 233,567 1,211,014 0.54



Total NAV 223,588,535 100.00

% of netassets


Investment aimsTo seek long-term capital appreciation, measured in Euro,through investment primarily in growth orientated equitysecurities of medium to large sized companies based inEuropean countries.

United KingdomVodafone Group 6,851,141 13,423,536 3.61Shell Transport & Trading 2,263,378 13,345,362 3.59GlaxoSmithKline 687,443 12,473,975 3.35Royal Bank of Scotland Group 533,317 12,442,225 3.34HSBC Holdings 680,784 8,498,114 2.28AstraZeneca Group 168,711 6,434,549 1.73Barclays 762,097 5,377,072 1.44Diageo 508,188 5,283,716 1.42Smith & Nephew 725,807 4,806,421 1.29Prudential 717,832 4,781,571 1.28Tesco 1,219,756 4,438,012 1.19BP 664,766 4,263,304 1.15EMAP 328,367 4,002,482 1.08Compass Group 695,444 3,746,047 1.01Granada 2,110,189 3,638,033 0.98National Grid Transco 624,130 3,545,181 0.95British Sky Broadcasting 327,327 3,264,176 0.88MFI Furniture 1,512,850 3,214,446 0.86Marks & Spencer Group 771,458 3,155,938 0.85Lloyds TSB Group 476,946 3,020,665 0.81Yell Group 683,245 2,956,696 0.79Vedanta Resources 488,640 2,526,393 0.68WPP Group 273,662 2,133,982 0.57Hays 912,389 1,570,274 0.42Celltech Group 248,689 1,309,564 0.35


FranceTotal 91,986 13,457,552 3.62Schneider Electric 168,594 8,724,739 2.34Axa 439,254 7,436,570 2.00BNP Paribas 136,657 6,749,489 1.81Société Générale 65,616 4,563,593 1.23France Telecom 189,191 4,234,095 1.14Technip-Coflexip 42,994 3,660,939 0.98STMicroelectronics 158,644 3,391,809 0.91Carrefour 43,310 1,855,834 0.50


NetherlandsRoyal Dutch Petroleum 238,579 9,958,287 2.67Koninklijke Philips Electronics 292,505 6,809,516 1.83Unilever 'CVA' 113,387 5,839,431 1.57Aegon 353,086 4,127,575 1.11Numico 180,719 3,959,553 1.06Royal KPN 554,010 3,412,702 0.92ING Groep 'CVA' 171,840 3,153,264 0.85Wolters Kluwer 'CVA' 244,857 3,036,227 0.82


GermanySiemens 119,877 7,612,189 2.05E.ON 117,251 6,066,567 1.63Deutsche Boerse 119,531 5,181,669 1.39Adidas-Salomon 53,539 4,834,572 1.30SAP 34,986 4,658,386 1.25Deutsche Telekom Regd 305,343 4,430,527 1.19Porsche Pfd 7,994 3,761,337 1.01Bayerische Motoren Werke 49,801 1,830,187 0.49


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7.22%7.92% 6.10% 15.26%

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Marketvalue





European Equity Growth Fund






European Equity Growth Fund



SwitzerlandNovartis Regd 327,347 11,790,072 3.17UBS Regd 182,183 9,898,049 2.66Roche Holding 'Genußschein' 68,070 5,446,966 1.46Syngenta 70,797 3,782,842 1.02Adecco Regd 51,838 2,643,466 0.71


FinlandNokia 955,346 13,097,794 3.52Tietoenator 173,312 3,760,870 1.01Sampo 'A' 228,726 1,875,553 0.50


ItalyUniCredito Italiano 1,299,013 5,559,776 1.49ENI 362,596 5,424,436 1.46Telecom Italia 1,444,446 3,394,448 0.91


SpainTelefonica 437,873 5,096,842 1.37Banco Bilbao Vizcaya Argentaria 401,139 4,392,472 1.18Grupo Ferrovial 71,697 1,991,743 0.54Inditex 106,768 1,718,965 0.46


SwedenAssa Abloy 'B' 488,733 4,604,242 1.23Securitas 'B' 354,460 3,788,431 1.02


DenmarkNovo-Nordisk 'B' 125,263 4,046,590 1.09

Total for Denmark 1.09

IrelandBank of Ireland 291,467 3,147,844 0.85


NorwayDNB Nor 442,935 2,344,075 0.63


BelgiumAGFA-Gevaert 1,563 35,324 0.01



Total NAV 372,185,835 100.00

% of netassets


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

United KingdomLand Securities Group 642,598 9,047,837 7.79British Land 894,292 7,410,615 6.38Liberty International 438,171 4,220,575 3.64Unite Group 1,477,530 3,808,092 3.28Chelsfield 853,353 3,720,387 3.20Hammerson 350,450 3,204,360 2.76Freeport 473,763 2,704,489 2.33Slough Estates 398,938 2,479,371 2.14Canary Wharf Group 444,188 1,692,537 1.46Minerva 461,742 1,409,502 1.21Pillar Property 178,795 1,305,832 1.12Capital & Regional Properties 154,274 880,677 0.76Derwent Valley Holdings 75,992 804,633 0.69Shaftesbury 202,461 709,799 0.61London Merchant Securities 280,518 681,585 0.59Brixton 129,000 498,870 0.44CLS Holdings 125,219 478,909 0.41


FranceGecina 68,724 7,971,984 6.87Unibail 79,137 5,899,663 5.08Société Foncière Lyonnaise 120,665 4,126,743 3.55Klepierre 62,509 2,951,675 2.54Sophia (ex-SFI) 50,658 2,071,912 1.78Bail Investissement 74,889 1,793,592 1.55SILIC (Société Immobilière de Location pour l'Industrie et le Commerce) 24,385 1,272,897 1.10


NetherlandsRodamco Europe 148,012 6,823,353 5.87Eurocommercial Properties 149,365 3,114,260 2.68Wereldhave 28,197 1,667,853 1.44Corio 47,160 1,446,869 1.25AM 232,747 1,440,704 1.24


ItalyBeni Stabili 8,059,153 4,182,700 3.60Aedes 1,004,389 3,374,747 2.91Risanamento 210,210 305,856 0.26


SpainInmobiliaria Colonial 134,949 2,564,031 2.21Inmobiliaria Urbis 291,805 2,290,669 1.97Metrovacesa 54,450 1,478,318 1.27


FinlandSponda 269,783 1,783,266 1.54


GermanyIVG Immobilien 186,006 1,724,276 1.49


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4

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24

17.48%18.20% 16.37% 20.66%

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Marketvalue





European Property Fund




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


European Property Fund



NorwaySteen & Strom 88,923 1,340,767 1.15


SwitzerlandPSP Swiss Property 10,752 1,206,940 1.04


BelgiumCofinimmo 10,600 1,161,760 1.00


SwedenJM 99,273 1,159,464 1.00



Total NAV 116,102,002 100.00

% of netassets


Investment aimsTo provide an attractive rate of return, measured in Euro, byinvesting primarily in the common stocks of small to mediumsized European corporations with a market capitalisation of upto US$ 2 billion (or equivalent) that the Company believes tobe undervalued relative to the stock market in general at thetime of purchase.

United KingdomCattles 121,913 578,514 2.27Luminar 68,960 397,567 1.56Novar 196,703 383,982 1.51Wincanton 129,109 381,313 1.50De La Rue 92,357 367,617 1.44Trinity Mirror 40,762 326,229 1.28SSL International 65,730 302,598 1.19Travis Perkins 15,619 283,635 1.11RAC 31,703 278,202 1.09SIG 56,403 261,681 1.03Keller Group 85,417 261,407 1.03SMG 158,785 260,907 1.02Spirax-Sarco Engineering 33,441 258,874 1.02Devro 200,169 256,888 1.01Ultra Electronics Holdings 33,773 251,637 0.99Rotork 47,810 248,138 0.97NHP 108,280 241,496 0.95Johnston Press 34,391 227,500 0.89Regent Inns 160,384 169,253 0.66British Vita 47,717 162,051 0.64Capital Radio 21,555 146,176 0.57Alliance Unichem 19,172 141,715 0.56William Hill 22,390 135,781 0.53HMV Group 55,704 132,482 0.52PHS Group 110,931 132,386 0.52Jarvis 23,817 69,562 0.27


SwitzerlandConverium Holding 10,493 442,541 1.74Valora Holding 1,870 369,446 1.45SIG Holding Regd 3,346 366,476 1.44Edipresse 'Bearer' 841 323,672 1.27Kaba Holdings Regd 'B' 1,653 265,076 1.04Inficon Holding 3,819 257,216 1.01Zehnder Group 'B' 345 221,298 0.87Galenica Holding Regd 1,201 138,667 0.54Saurer Regd 3,718 130,930 0.51Schindler Holding 'PC' 665 128,821 0.51


NetherlandsVOPAK 21,363 322,154 1.26IHC Caland 7,259 313,153 1.23Laurus 255,412 306,494 1.20CSM 'CVA' 16,496 288,680 1.13BE Semiconductor Industries 42,907 283,186 1.11Euronext 13,524 270,074 1.06Nutreco Holding 11,864 258,517 1.01New Skies Satellites 44,677 256,893 1.01Univar 17,267 248,645 0.99


ItalyArnoldo Mondadori Editore 81,496 579,437 2.27Interpump 121,923 432,827 1.70Cassa di Risparmio di Firenze 233,494 331,561 1.30Buzzi Unicem 26,696 249,608 0.98Sogefi 91,076 248,637 0.98Merloni Elettrodomestici 16,483 246,421 0.97Davide Campari-Milano 5,101 196,389 0.77Saes Getters 17,094 168,376 0.66


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6

12

18

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36

21.16%21.84% 20.02% 34.28%

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Marketvalue





European Small Cap Value Fund*

* The European Growth Opportunities Fund merged into the European Small Cap Value Fund on 2 May 2003.




MSCI European Small Cap Index (expressed in Euro)


European Small Cap Value Fund

GreeceGreek Organization of Football Prognostics 27,749 315,784 1.24

Total for Greece 1.24

IrelandKingspan Group 4,811 20,399 0.08



Total NAV 25,476,737 100.00

Marketvalue




GermanySchwarz Pharma 20,621 443,558 1.73Grenkeleasing 16,138 283,061 1.10Celesio 6,932 266,535 1.05Pfeiffer Vacuum Technology 9,431 264,068 1.04Techem 15,867 243,558 0.96Beru 3,717 192,169 0.75Hugo Boss Pfd 11,749 187,397 0.74Rational 4,122 185,531 0.73WMF Wuerttembergische Metallwarenfabrik Pfd 9,967 123,591 0.49


FranceNeopost 12,622 506,142 1.99Zodiac 15,567 360,843 1.42Imerys 2,065 344,442 1.35Klepierre 5,150 243,183 0.95Gecina 1,721 199,636 0.78Alliance & Gestion Commercial 2,819 192,538 0.76Chargeurs 5,514 140,607 0.55Autoroutes du Sud de la France 4,728 125,103 0.49


FinlandKone 'B' 11,347 516,289 2.03KCI Konecranes 18,224 502,982 1.97Metso 33,150 320,892 1.27Vacon 26,024 255,035 1.00Uponor 10,132 253,300 0.99


SwedenSwedish Match 64,076 518,923 2.04Eniro 43,283 329,069 1.29Intrum Justitia 74,208 310,710 1.22Getinge 'B' 16,875 128,296 0.50D. Carnegie & Co 16,166 126,468 0.50Hoganas 'B' 7,203 122,223 0.48


SpainMiquel Y Costas 15,205 509,367 1.99Red Electrica de Espana 25,798 335,374 1.32Prosegur Compania de Seguridad Regd 19,263 248,493 0.98Amadeus Global Travel Distribution 'A' 33,775 173,941 0.68


DenmarkDanisco 7,349 259,125 1.01Kobenhavns Lufthavne (Copenhagen Airports) 2,733 254,037 1.00


NorwayDNB Nor 92,684 490,497 1.93


BelgiumOmega Pharma 12,710 318,385 1.25


% of netassets


Investment aimsTo seek long-term capital growth, measured in Euro, throughinvestment in the equity securities of European companies listedon European Stock Exchanges. Investments will be sought inequity securities that the Company believes to be undervaluedrelative to the stock market in general at the time of purchase.

United KingdomVodafone Group 10,434,805 20,445,058 4.01GlaxoSmithKline 1,065,987 19,342,833 3.79Shell Transport & Trading 2,650,444 15,627,587 3.06Royal Bank of Scotland Group 567,769 13,245,987 2.60Reed Elsevier 1,629,248 10,800,704 2.12Rentokil Initial 3,220,170 8,666,654 1.70Prudential 1,125,627 7,497,947 1.47Allied Domecq 1,192,265 7,295,845 1.43Smiths Group 683,069 6,366,628 1.25BOC Group 516,447 6,222,283 1.22HSBC Holdings 485,494 6,060,342 1.19Barclays 846,583 5,973,173 1.17Lloyds TSB Group 871,226 5,517,778 1.08British American Tobacco 463,718 5,061,108 0.99Yell Group 1,098,651 4,754,337 0.93Hays 2,648,099 4,557,530 0.89National Grid Transco 754,554 4,286,015 0.84Rolls-Royce Group 1,450,039 3,640,701 0.71Diageo 309,245 3,215,272 0.63GUS 269,262 2,952,127 0.58Cadbury Schweppes 464,079 2,703,638 0.53Scottish & Southern Energy 274,254 2,614,491 0.51Pearson 283,132 2,494,585 0.49Invensys 3,047,459 800,757 0.17


SwitzerlandNovartis Regd 489,188 17,619,107 3.45Nestlé Regd 80,953 16,045,371 3.15UBS Regd 197,497 10,730,062 2.10Syngenta 168,885 9,023,903 1.77Converium Holding 141,556 5,970,111 1.17Swiss Reinsurance Regd 92,641 4,961,900 0.97Ciba Speciality Chemicals Regd 78,954 4,846,681 0.95Holcim Regd 130,949 4,838,191 0.95Credit Suisse Group 143,169 4,155,525 0.81ABB 923,108 3,712,602 0.73Swisscom Regd 13,614 3,562,905 0.70Schindler Holding Regd 12,137 2,670,323 0.53Roche Holding 'Genußschein' 31,826 2,546,719 0.50ABB Rts 1 1 0.00


FranceTotal 122,428 17,911,216 3.51Aventis 252,147 13,111,644 2.57BNP Paribas 223,704 11,048,741 2.17Schneider Electric 164,371 8,506,199 1.67France Telecom 344,666 7,713,625 1.51Société Générale 92,346 6,422,664 1.26STMicroelectronics 264,693 5,659,136 1.11Groupe Danone 36,039 4,620,200 0.91Axa 181,573 3,074,031 0.60Neopost 66,726 2,675,713 0.52Peugeot 65,971 2,647,416 0.52European Aeronautic Defense and Space 134,216 2,527,287 0.50Carrefour 58,404 2,502,611 0.49


ItalyENI 515,120 7,706,195 1.51Telecom Italia 'RNC' 4,373,002 7,062,398 1.38UniCredito Italiano 1,452,410 6,216,315 1.23Telecom Italia 2,352,828 5,529,146 1.08


0

4

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16

7.65%8.28% 6.55% 15.26%

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Marketvalue





European Value Equity Fund






European Value Equity Fund


Statement of investments (continued)Transferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Euro.

NetherlandsRoyal Dutch Petroleum 292,876 12,224,644 2.40Unilever 'CVA' 198,467 10,221,051 2.00Heineken 119,319 3,655,934 0.72


GermanySiemens 93,056 5,909,056 1.16Adidas-Salomon 63,131 5,700,729 1.12Deutsche Boerse 122,210 5,297,804 1.04Deutsche Telekom Regd 231,071 3,352,840 0.66E.ON 56,690 2,933,141 0.58


FinlandNokia 837,828 11,486,622 2.25Sampo 'A' 318,460 2,611,372 0.51


BelgiumFortis 308,838 4,916,701 0.96Solvay 67,746 4,677,861 0.92AGFA-Gevaert 198,980 4,496,948 0.88


IrelandBank of Ireland 579,580 6,259,464 1.23Allied Irish Banks 390,417 4,958,296 0.97


NorwayDNB Nor 1,057,002 5,593,805 1.10Telenor 338,918 1,757,245 0.34


SpainTelefonica 603,834 7,028,628 1.38


DenmarkDanske Bank 250,785 4,665,548 0.91



Total NAV 509,968,082 100.00

% of netassets


Global Brands Fund

Investment aimsTo seek an attractive long-term rate of return, measured inUS dollars, through investment principally in equity securitiesof companies in the world’s developed countries.

United KingdomBritish American Tobacco 3,031,110 41,703,325 7.42Cadbury Schweppes 4,249,974 31,211,900 5.56Diageo 1,851,367 24,265,258 4.33Reckitt Benckiser 1,038,268 23,397,269 4.17Allied Domecq 2,949,360 22,751,387 4.06GlaxoSmithKline 808,928 18,503,562 3.30SMG 7,545,553 15,629,511 2.79Imperial Tobacco Group 750,761 14,786,778 2.64Capital Radio 1,415,728 12,102,775 2.16WPP Group 1,082,534 10,641,313 1.90


United States of AmericaAltria Group 479,377 25,900,739 4.62New York Times 'A' 458,178 21,809,273 3.89Kimberly-Clark 347,127 20,424,953 3.64Merck & Co 363,350 16,532,425 2.95Bristol-Myers Squibb 473,162 13,447,264 2.40Fortune Brands 163,780 11,603,813 2.07Brown-Forman 'B' non-vtg 116,196 10,848,058 1.93


SwitzerlandNestlé Regd 100,988 25,232,710 4.50Novartis Regd 356,792 16,199,459 2.89


FranceGroupe Danone 148,246 23,957,876 4.27Aventis 231,253 15,158,912 2.70


FinlandKone 'B' 446,293 25,598,161 4.56


SwedenSwedish Match 2,494,368 25,465,108 4.54


SpainZardoya-Otis 967,924 20,132,722 3.59


CanadaTorstar 'B' 734,070 16,574,857 2.95


NetherlandsReed Elsevier 1,260,460 15,539,793 2.77


ItalyDavide Campari-Milano 299,790 14,549,738 2.59



Total NAV 560,951,061 100.00

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26.60%27.34% 25.32% 33.11%

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Marketvalue








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


Global Small Cap Value Fund

Investment aimsTo provide an attractive rate of return, measured in US dollars,by investing in the common stocks of small to medium sizedcorporations that the Company believes to be undervaluedrelative to the stock market in general at the time of purchase.

United States of AmericaStone Energy 60,000 2,574,600 1.76Apria Healthcare Group 70,500 2,007,135 1.38Reinsurance Group of America 49,600 1,923,488 1.32DRS Technologies 55,300 1,523,515 1.05School Specialty 41,800 1,435,412 0.99Terex 46,200 1,338,414 0.92Sinclair Broadcast Group 'A' 88,900 1,337,945 0.92AFC Enterprises 66,200 1,294,210 0.89Universal Compression Holdings 45,900 1,235,628 0.85LNR Property 24,300 1,207,710 0.83TBC 44,200 1,186,770 0.81Denbury Resources 82,300 1,140,678 0.78Tower Automotive 156,600 1,113,426 0.76Laidlaw International 81,100 1,107,015 0.76AGL Resources 37,700 1,095,562 0.75PNM Resources 38,400 1,089,024 0.75Russell 57,600 1,030,464 0.71Watts Water Technologies 'A' 42,500 956,250 0.66Triad Guaranty 18,800 939,248 0.64Reliance Steel & Aluminum 26,700 925,956 0.64Cytec Industries 23,400 903,006 0.62Movie Gallery 42,900 814,671 0.56ProAssurance 24,400 802,760 0.55Community First Bankshares 26,700 783,645 0.54Varian 18,700 778,294 0.53MSC.Software 80,200 771,524 0.53Storage Technology 29,500 764,640 0.52Rock-Tenn 'A' 41,400 739,818 0.51Circor International 30,400 732,640 0.50Albany International 'A' 21,300 728,460 0.50Stage Stores 25,200 704,340 0.48Wackenhut Corrections 30,600 701,352 0.48Hanger Orthopedic Group 44,000 688,600 0.47UGI 20,100 684,405 0.47Saga Communications 'A' 36,200 680,560 0.47Capital Automotive 20,600 674,238 0.46Commerce Bancshares 13,605 670,454 0.46Cousins Properties 21,400 662,758 0.45Corn Products International 18,800 662,700 0.45Overnite 29,400 648,564 0.45Superior Energy Services 67,700 645,858 0.44Flowserve 30,600 638,010 0.44MAF Bancorp 14,700 634,158 0.44Delta & Pine Land 24,900 633,705 0.43MAXIMUS 15,900 629,799 0.43First Niagara Financial Group 40,700 622,303 0.43OM Group 23,500 620,400 0.43Ambassadors Group 26,000 600,600 0.41Furniture Brands International 20,500 596,550 0.41St. Mary Land & Exploration 20,300 589,715 0.40Parkway Properties 13,600 585,480 0.40CCC Information Services Group 33,900 579,690 0.40Black Box 12,200 562,298 0.39Integra Bank 24,900 560,897 0.38Savient Pharmaceuticals 116,500 549,880 0.38CarrAmerica Realty 18,100 548,430 0.38MB Financial 15,000 543,150 0.37Topps 50,800 533,400 0.37Penn-America Group 39,400 531,506 0.36Navigant International 37,200 520,800 0.36Maxwell Shoe 'A' 29,500 520,675 0.36Ametek 10,700 518,308 0.36Remington Oil & Gas non-vtg shs 25,200 511,560 0.35Banta 11,800 479,552 0.33Imation 13,400 465,650 0.32Independent Bank 16,000 464,000 0.32Provident Bankshares 15,100 461,154 0.32LoJack 57,100 457,371 0.31

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24

36

48

60

44.61%45.47% 43.61% 57.79%

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Marketvalue








MSCI World Small Cap Index (expressed in US dollars)

26


United Kingdom (continued)British Vita 89,345 382,495 0.26Keller Group 98,604 380,404 0.26HMV Group 116,950 350,629 0.24Michael Page International 103,790 345,238 0.24Regent Inns 210,433 279,941 0.20


FinlandKone 'B' 30,514 1,750,201 1.20KCI Konecranes 42,914 1,493,088 1.02Metso 87,556 1,068,412 0.73Uponor 14,096 444,235 0.31


SwitzerlandValora Holding 4,392 1,093,827 0.75Edipresse 'Bearer' 2,135 1,035,821 0.71Converium Holding 14,717 782,439 0.54Galenica Holding Regd 3,508 510,585 0.35Zehnder Group 'B' 559 452,009 0.31Schindler Holding 'PC' 1,569 383,147 0.26SIG Holding Regd 2,695 372,096 0.26


GermanyTechem 38,714 749,124 0.51Beru 10,966 714,687 0.49MPC Muenchmeyer Petersen Capital 17,423 555,895 0.38Hugo Boss Pfd 23,449 471,479 0.32Pfeiffer Vacuum Technology 12,010 423,915 0.29Celesio 7,815 378,794 0.26Rational 4,078 231,384 0.16Sartorius Pfd 24,551 210,453 0.15WMF Wuerttembergische Metallwarenfabrik Pfd 9,490 148,342 0.11


FranceNeopost 28,149 1,422,934 0.98Zodiac 34,067 995,462 0.68Autoroutes du Sud de la France 20,540 685,121 0.47Alliance & Gestion Commercial 4,893 421,282 0.29Chargeurs 5,560 178,728 0.12


CanadaIntrawest 79,800 1,456,350 1.00Moore Wallace 48,200 894,110 0.61Hummingbird 26,775 593,066 0.41PetroKazakhstan 'A' 23,500 528,045 0.36


NetherlandsIHC Caland 16,777 912,372 0.62Laurus 509,991 771,474 0.53Nutreco Holding 27,098 744,341 0.51BE Semiconductor Industries 69,641 579,410 0.40CSM 'CVA' 8,426 185,882 0.13


Marketvalue




United States of America (continued)Diversa 45,400 441,288 0.30Imagistics International 11,200 430,304 0.30Cabot Oil & Gas 14,200 427,846 0.29NYMAGIC 15,100 406,341 0.28PFF Bancorp 11,000 405,900 0.28EMS Technologies 18,100 387,340 0.27Direct General 11,500 378,580 0.26Journal Communications 'A' 18,600 346,704 0.24Ligand Pharmaceuticals 'B' 19,600 293,412 0.20Central Garden and Pet 6,800 190,876 0.13PolyOne 8,100 53,136 0.04Catellus Development 894 21,768 0.01


JapanAiful 28,900 2,119,414 1.45Leopalace21 223,000 2,106,824 1.45Daibiru 347,000 1,872,868 1.29Asatsu-Dk 62,400 1,611,000 1.11Ariake Japan 46,370 1,479,086 1.02Jaccs 295,000 1,089,986 0.75Sumitomo Osaka Cement 530,000 1,041,111 0.71TOC 173,000 967,719 0.66Nitta 68,800 956,333 0.66Fukuda Denshi 37,400 790,646 0.54Nakanishi 17,000 763,294 0.52Shinkawa 35,200 742,491 0.51Tenma 72,200 737,500 0.51Yamaichi Electronics 56,600 616,800 0.42ITO En 14,300 616,650 0.42Tomy 41,100 608,974 0.42Osaki Electric 114,000 591,834 0.41Union Tool 17,900 591,057 0.41Toppan Forms 48,800 543,668 0.37Fujimi 17,200 529,330 0.36Nihon Trim 9,800 502,353 0.34Yomiuri Land 155,000 482,812 0.33Taisei Lamick 20,500 448,716 0.31Nippon Broadcasting System 9,000 420,093 0.29Takuma 67,000 366,634 0.25Tokyo Kikai Seisakusho 134,000 342,192 0.23Shidax 502 326,355 0.22Asia Securities Printing 56,000 314,298 0.22Hurxley 18,700 268,505 0.18Nissei 27,100 202,797 0.14Megane TOP 21,000 195,061 0.13Maezawa Kasei Industries 8,600 107,797 0.07Ozeki 1,700 66,788 0.05Mirai 7,200 32,665 0.03


United KingdomCattles 233,689 1,397,911 0.96Luminar 126,793 921,480 0.63Novar 339,994 836,659 0.57Wincanton 214,835 799,848 0.55Rotork 118,616 776,060 0.53Spirax-Sarco Engineering 78,730 768,293 0.53Capital Radio 79,367 678,493 0.47SSL International 109,994 638,335 0.44SIG 104,584 611,664 0.42PHS Group 388,648 584,686 0.40William Hill 70,122 536,063 0.37Jarvis 113,502 417,895 0.29Devro 245,658 397,425 0.27De La Rue 76,919 385,955 0.26

% of netassets




BelgiumOmega Pharma 25,835 815,818 0.56


South KoreaKT&G 39,880 692,170 0.48


GreeceGreek Organization of Football Prognostics 43,789 628,181 0.43

Total for Greece 0.43

Puerto RicoR&G Financial 'B' 15,200 609,520 0.42

Total for Puerto Rico 0.42

Cayman IslandsApex Silver Mines 28,100 604,431 0.41

Total for Cayman Islands 0.41

BermudaIPC Holdings 8,700 339,300 0.23

Total for Bermuda 0.23



FranceEuropéenne D'Extincteurs (1) 10,591 0 0.00


GermanySCS Standard Computer Systeme (1) 1,795 0 0.00




Total NAV 145,691,128 100.00


Marketvalue




ItalyBuzzi Unicem 74,641 879,764 0.59Sogefi 218,640 752,436 0.52Davide Campari-Milano 14,284 693,247 0.48Cassa di Risparmio di Firenze 241,750 432,745 0.30Saes Getters 'RNC' 28,900 212,395 0.15Saes Getters 16,100 199,912 0.14


SwedenIntrum Justitia 185,707 980,188 0.67Swedish Match 89,169 910,330 0.62D. Carnegie & Co 45,144 445,201 0.31Hoganas 'B' 19,677 420,898 0.29Getinge 'B' 37,389 358,336 0.25


AustraliaJohn Fairfax Holdings 434,379 1,148,213 0.79Ramsay Health Care 143,538 514,158 0.35Promina Group 159,010 391,660 0.27Infomedia 559,735 386,706 0.27


New ZealandFisher & Paykel Healthcare 145,498 1,207,125 0.82Sky City Entertainment Group 244,211 738,364 0.51Fisher & Paykel Appliances Holdings 102,981 259,354 0.18

Total for New Zealand 1.51

NorwayDNB Nor 171,684 1,145,351 0.79Storebrand 44,854 291,820 0.20


SpainMiquel Y Costas 16,098 679,820 0.47Amadeus Global Travel Distribution 'A' 59,111 383,754 0.26Abertis Infraestructuras 24,111 364,428 0.25


IrelandIcon ADR 23,200 981,824 0.67Kingspan Group 71,300 381,094 0.26


Hong KongAsia Satellite Telecommunications Holdings 480,000 911,983 0.63Television Broadcasts 63,340 319,829 0.22Hong Kong Land Holdings 34,000 57,800 0.04


DenmarkKobenhavns Lufthavne (Copenhagen Airports) 6,589 772,066 0.53Danisco 9,733 432,618 0.30


% of netassets



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

SemiconductorsIntel 106,625 3,420,530 7.11Marvell Technology Group 27,200 1,020,544 2.12Maxim Integrated Products 16,350 811,287 1.69Texas Instruments 27,100 798,637 1.66Linear Technology 15,450 649,055 1.35Analog Devices 13,700 625,953 1.30QLogic 11,275 588,781 1.22Broadcom 'A' 15,350 535,101 1.11Xilinx 11,150 435,631 0.91PMC - Sierra 19,350 392,805 0.82United Microelectronics ADR 74,300 366,299 0.76RF Micro Devices 35,800 352,988 0.73Agere Systems 'A' 103,400 308,132 0.64Intersil 'A' 11,775 295,553 0.61Integrated Circuit Systems 8,400 239,736 0.50Amkor Technology 12,950 236,079 0.49STMicroelectronics 'NY' 8,600 232,286 0.48Applied Micro Circuits 37,200 216,132 0.45Microchip Technology 6,300 211,365 0.44Vitesse Semiconductor 26,500 158,470 0.33Kopin 19,000 124,830 0.26Power Integrations 3,300 111,969 0.23Actel 3,600 87,264 0.18

Total for Semiconductors 25.39

Systems SoftwareMicrosoft 138,450 3,812,913 7.92Oracle 97,825 1,291,290 2.68Veritas Software 25,550 952,249 1.98Novell 79,600 838,984 1.74Symantec 18,450 641,691 1.33Network Associates 32,700 488,865 1.02Adobe Systems 8,725 347,255 0.72Computer Associates International 11,650 322,123 0.67Micromuse 39,150 267,395 0.56NetScreen Technologies 8,500 204,340 0.43

Total for Systems Software 19.05

Communications EquipmentCisco Systems 118,950 2,889,296 6.00Nokia ADR 73,450 1,250,119 2.60Alcatel ADR 48,300 626,451 1.30Qualcomm 10,600 580,668 1.21Sonus Networks 52,950 412,481 0.86Emulex 13,975 377,046 0.78Ericsson (LM) ADR 'B' 20,750 365,200 0.76Motorola 23,400 325,494 0.68Nortel Networks 53,900 226,919 0.47Tellabs 26,000 220,480 0.46Optical Communication Products 62,000 212,660 0.44Juniper Networks 11,300 209,050 0.43Corning 18,300 189,222 0.39Extreme Networks 21,325 159,724 0.33Finisar 50,775 159,434 0.33Lucent Technologies 54,100 155,267 0.32Inter- Tel 4,400 112,200 0.23Advanced Fibre Communications 3,700 74,296 0.16

Total for Communications Equipment 17.75

Application SoftwareSAP ADR Pfd 19,700 819,520 1.70Peoplesoft 31,600 722,060 1.50Siebel Systems 48,150 674,582 1.40Mercury Interactive 11,300 545,225 1.13Quest Software 24,275 349,074 0.73Hyperion Solutions 7,700 235,851 0.49

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48.00%48.04% 46.94% 48.29%

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Global Technology Fund




MSCI World IT Index (expressed in US dollars)


Global Technology Fund

Consumer ElectronicsKoninklijke Philips Electronics 23,075 673,559 1.40

Total for Consumer Electronics 1.40

Electronic Equipment ManufacturersAmphenol 'A' 3,175 202,660 0.42Magal Security Systems 16,738 133,234 0.28Veeco Instruments 3,850 110,842 0.23

Total for Electronic Equipment Manufacturers 0.93

Internet RetailInterActiveCorp 12,500 422,625 0.88

Total for Internet Retail 0.88

IT Consulting & Other ServicesCheck Point Software Technologies 19,650 333,460 0.69

Total for IT Consulting & Other Services 0.69

Integrated Telecommunication ServicesAmdocs 11,850 265,795 0.55

Total for Integrated Telecommunication Services 0.55

Office ElectronicsZebra Technologies 'A' 3,100 202,337 0.42

Total for Office Electronics 0.42


Total NAV 48,125,916 100.00


Marketvalue




Application Software (continued)Red Hat 11,600 219,008 0.46Informatica 17,400 182,700 0.38BEA Systems 14,650 182,246 0.38Verint Systems 7,950 178,875 0.37Macromedia 9,000 163,080 0.33Citrix Systems 4,850 104,760 0.22

Total for Application Software 9.09

Semiconductor EquipmentApplied Materials 49,175 1,108,896 2.30ASML Holding 'NY' Regd 30,825 624,206 1.30KLA - Tencor 8,150 476,123 0.99Novellus Systems 10,550 447,003 0.93Credence Systems 32,200 431,480 0.90Brooks Automation 14,350 349,996 0.73Lam Research 9,700 318,936 0.66Taiwan Semiconductor Manufacturing ADR 24,700 249,964 0.52MKS Instruments 4,300 124,700 0.26LTX ff 6,600 101,706 0.21

Total for Semiconductor Equipment 8.80

Computer Storage & PeripheralsNetwork Appliance 28,675 589,558 1.23EMC 45,695 582,154 1.21Sandisk 3,725 228,678 0.47

Total for Computer Storage & Peripherals 2.91

Wireless Telecommunication ServicesVodafone Group ADR 21,800 539,550 1.12Nextel Communications 'A' 17,600 491,040 1.02China Mobile (Hong Kong) ADR 20,975 323,644 0.67

Total for Wireless Telecommunication Services 2.81

Computer HardwareDell 21,350 740,418 1.54Lexar Media 11,000 191,620 0.40

Total for Computer Hardware 1.94

Electronic Manufacturing ServicesFlextronics International 30,950 453,727 0.94Jabil Circuit 10,050 285,118 0.59Solectron 32,100 187,785 0.40

Total for Electronic Manufacturing Services 1.93

Internet Software & ServicesVeriSign 20,825 340,905 0.71Yahoo! 4,175 187,457 0.39F5 Networks 6,100 155,794 0.32Verso Technologies 30,300 94,536 0.20Akamai Technologies 8,100 89,667 0.19Warp Technology Holdings (1) 190,732 16,689 0.03

Total for Internet Software & Services 1.84

BiotechnologyAmgen 3,749 232,475 0.48Celgene 4,100 184,869 0.38Telik 6,400 142,784 0.30Gilead Sciences 2,075 120,640 0.25NPS Pharmaceuticals 3,850 118,618 0.25

Total for Biotechnology 1.66

% of netassets



Global Value Equity Fund

Investment aimsTo seek an attractive long-term rate of return, measured in USdollars, through investment principally in equity securities ofcompanies listed on the world’s Stock Exchanges.

United States of AmericaAltria Group 444,428 24,012,445 2.13International Business Machines 249,168 23,080,432 2.05Wyeth 521,766 21,893,301 1.94Kimberly-Clark 321,886 18,939,772 1.68Motorola 1,204,772 16,758,379 1.49Boise Cascade 498,397 16,222,822 1.44Verizon Communications 415,841 14,554,435 1.29Pfizer 414,667 14,542,372 1.29SBC Communications 527,881 13,756,579 1.22Bristol-Myers Squibb 478,462 13,597,890 1.21Mellon Financial 421,998 13,541,916 1.20Northrop Grumman 141,838 13,470,355 1.20Travelers Property Casualty 'A' 801,224 13,460,563 1.19Hewlett-Packard 576,197 13,212,197 1.17First Data 320,076 13,043,097 1.16MBIA 221,064 13,018,459 1.16Alcoa 331,741 12,642,650 1.12Georgia Pacific 395,637 12,213,314 1.08McDonald's 447,323 11,084,664 0.98General Dynamics 118,259 10,656,318 0.95Merrill Lynch & Co. 171,789 10,020,452 0.89Boeing 217,647 9,202,115 0.82Prudential Financial 214,356 8,975,086 0.80Kroger 475,603 8,755,851 0.78Loews - Carolina Group 330,824 8,336,765 0.74BJ's Wholesale Club 341,801 7,909,275 0.70Ford Motor Company Capital Trust II Pfd Stock 6.5% /2032 133,479 7,448,128 0.66ChevronTexaco 84,128 7,240,056 0.64New York Times 'A' 149,472 7,114,867 0.63Merck & Co 153,599 6,988,755 0.62Xerox 501,260 6,842,199 0.61U.S. Bancorp 226,487 6,742,518 0.60Exxon Mobil 165,557 6,734,859 0.60Coca-Cola 131,497 6,643,228 0.59BellSouth 217,079 6,112,945 0.54Parker Hannifin 100,346 5,955,535 0.53J.P. Morgan Chase & Co 160,144 5,872,480 0.52Viacom non-vtg 'B' 131,876 5,769,575 0.51Wells Fargo & Co. 81,294 4,791,468 0.43The Gap 188,767 4,386,945 0.39Emerson Electric 57,779 3,744,657 0.33Du Pont (E.I.) de Nemours 67,442 3,086,146 0.28


United KingdomReed Elsevier 2,768,106 23,132,624 2.05GlaxoSmithKline 945,161 21,619,780 1.92Vodafone Group 8,026,051 19,823,632 1.75Cadbury Schweppes 2,509,087 18,426,788 1.64Allied Domecq 2,053,318 15,839,312 1.41Diageo 955,325 12,521,130 1.11Scottish & Southern Energy 810,973 9,745,807 0.87Rolls-Royce Group 2,279,988 7,216,309 0.64BAA 727,376 6,432,500 0.57Royal Bank of Scotland Group 211,704 6,226,142 0.55Yell Group 1,134,081 6,186,594 0.55WPP Group 624,862 6,142,395 0.55Rentokil Initial 1,764,238 5,985,592 0.53Lloyds TSB Group 747,405 5,967,147 0.53National Grid Transco 832,131 5,958,438 0.53Prudential 695,574 5,840,748 0.52


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28.18%28.92% 26.92% 33.11%

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Marketvalue


Statement of investmentsTransferable securities admitted to official exchange listing or dealt in on another regulated market. As at 31 December 2003, expressedin US dollars.







Global Value Equity Fund

DenmarkDanisco 211,662 9,408,076 0.84


BermudaXL Capital 'A' 109,097 8,416,834 0.75

Total for Bermuda 0.75

IrelandBank of Ireland 488,159 6,646,031 0.59


Hong KongHongkong Electric Holdings 1,438,000 5,686,577 0.50


SwedenNordea 757,133 5,678,892 0.50


South KoreaSamsung Electronics GDR - 1/2 commonshare Regd 13,792 2,599,792 0.23


FinlandNokia 132,839 2,295,833 0.20


Total Investment Securities 1,076,910,163 95.60

Total NAV 1,126,420,955 100.00

Marketvalue




JapanTakeda Chemical Industries 368,400 14,645,713 1.30Fuji Photo Film 419,000 13,561,012 1.20Mitsui Sumitomo Insurance 1,612,000 13,269,351 1.18Canon 261,000 12,182,686 1.08Nippon Telegraph & Telephone 2,355 11,388,943 1.01Kao 554,000 11,297,133 1.00Mitsubishi Estate 1,143,000 10,862,803 0.96Sekisui House 863,000 8,936,355 0.79Rohm 73,400 8,623,582 0.77Sumitomo Electric Industries 910,000 8,154,717 0.72Sankyo 430,400 8,112,399 0.72Hitachi 1,110,000 6,707,451 0.60Fujitsu 865,000 5,113,699 0.45Toyota Motor 127,800 4,327,543 0.38Fuji Television Network 518 2,810,346 0.26


FranceAventis 281,782 18,471,148 1.64BNP Paribas 248,227 15,454,870 1.37Total 80,961 14,931,296 1.33Lafarge 154,079 13,489,412 1.20Compagnie de Saint-Gobain 198,529 9,610,201 0.85Groupe Danone 39,090 6,317,293 0.56


SwitzerlandNestlé Regd 86,133 21,521,062 1.91Converium Holding 249,724 13,276,747 1.18Syngenta 146,138 9,843,370 0.87Novartis Regd 214,741 9,749,905 0.87Holcim Regd 185,092 8,620,764 0.77Roche Holding 'Genußschein' 81,903 8,261,825 0.73UBS Regd 96,665 6,620,462 0.59


NetherlandsRoyal Dutch Petroleum 'NY' 430,617 22,495,432 2.00Heineken 274,218 10,591,611 0.93Koninklijke Philips Electronics 356,171 10,452,468 0.93ING Groep 'CVA' 252,087 5,831,279 0.52Unilever 'CVA' 46,280 3,004,539 0.27


ItalyENI 951,445 17,942,898 1.59Telecom Italia 'RNC' 5,952,927 12,119,380 1.08


GermanyBASF 238,994 13,430,877 1.19Porsche Pfd 6,814 4,041,639 0.36


SpainTelefonica 726,834 10,665,114 0.95


% of netassets



Investment aimsTo seek long-term capital appreciation, measured in JapaneseYen, through investment primarily in the equity securities ofgrowth orientated small, medium and large sized companiesdomiciled in or exercising the predominant part of their economicactivity in Japan and which are listed on any exchanges or overthe counter markets in Japan.

Electronic Equipment ManufacturersNidec 12,300 125,829,000 2.78Keyence 3,100 70,029,000 1.55Citizen Electronics 6,000 58,500,000 1.29Hirose Electric 4,000 49,200,000 1.09Hoya 4,200 41,328,000 0.91Meiko Electronics 12,000 40,200,000 0.89Kuroda Electric 11,200 38,416,000 0.85TDK 3,800 29,336,000 0.65Murata Manufacturing 4,500 26,055,000 0.58Optex 8,500 24,820,000 0.55Japan Electronic Materials 15,600 24,180,000 0.53Macnica 7,600 23,408,000 0.52Yokowo 14,600 22,849,000 0.51Nippon Ceramic 19,000 19,190,000 0.42Dainippon Screen Manufacturing 25,000 18,325,000 0.41Toyo 15,300 18,130,500 0.40Kyocera 2,500 17,850,000 0.39Lasertec 5,000 16,000,000 0.35Canon Electronics 9,000 12,420,000 0.28Optex New 4,250 12,410,000 0.27Megachips 3,500 3,738,000 0.09Photonics 23 2,461,000 0.05SK-Electronics 3 2,295,000 0.05


Electrical Components & EquipmentChiyoda Integre 16,600 56,772,000 1.26Horiba 40,000 47,960,000 1.06Enplas 11,200 37,744,000 0.83Ushio 21,000 37,359,000 0.83Patlite 13,200 24,948,000 0.55Sumida 5,900 19,883,000 0.44

Total for Electrical Components & Equipment 4.97

SemiconductorsNEC Electronics 11,000 86,240,000 1.91Rohm 6,600 82,896,000 1.83Disco 200 1,214,000 0.03


Office ElectronicsRicoh 47,000 99,405,000 2.20Canon 12,000 59,880,000 1.32


Industrial MachineryShima Seiki Manufacturing 7,800 31,200,000 0.69Miyachi Technos 18,500 25,715,000 0.57Fuji Machine Manufacturing 16,400 22,304,000 0.49Toyo Machinery & Metal 26,000 18,590,000 0.41Nitta 11,400 16,940,400 0.37Tsubaki Nakashima 11,500 16,445,000 0.36Tosei Engineering 12,000 14,040,000 0.31Harmonic Drive Systems 19 12,445,000 0.29

Total for Industrial Machinery 3.49

Specialty StoresNitori 10,000 66,700,000 1.47Otsuka Kagu 10,700 35,524,000 0.79C&S Co. 11,600 22,504,000 0.50Studio Alice 5,100 10,965,000 0.24Studio Alice New 5,100 10,965,000 0.24

Total for Specialty Stores 3.24

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24.29%25.02% 23.48% 25.19%

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Marketvalue


Statement of investmentsTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Japanese Yen.


Japanese Equity Growth Fund*




TOPIX Index (expressed in Japanese Yen)

* Fund renamed and investment objective changed on 3 November 2003 (formerly known asJapanese Growth Opportunities Fund). Prior to that date, the Fund’s investment aim was:“To seek long term capital appreciation, measured in Yen, through investment primarily in theequity securities of growth orientated small, medium and large sized companies listed on anyexchanges or over the counter markets in Japan.”.


Japanese Equity Growth Fund

Home Entertainment SoftwareNintendo 6,400 64,000,000 1.42Namco 10,100 29,997,000 0.66Konami 9,300 29,016,000 0.64

Total for Home Entertainment Software 2.72

Leisure ProductsYamaha 17,500 36,837,500 0.81Takara 43,200 29,332,800 0.65Roland 14,900 21,754,000 0.48Endo Manufacturing 21,000 7,980,000 0.18

Total for Leisure Products 2.12

Diversified ChemicalsFujimi 7,600 25,004,000 0.55C. Uyemura & Co. 8,000 22,400,000 0.50Aica Kogyo Company 16,000 17,728,000 0.39Fuso Chemical 6,900 16,422,000 0.36Stella Chemifa 2,100 3,024,000 0.07

Total for Diversified Chemicals 1.87

Real Estate Management & DevelopmentKennedy-Wilson Japan 105 34,125,000 0.75Diamond City 9,700 24,686,500 0.55Urban 19,300 19,956,200 0.44

Total for Real Estate Management & Development 1.74

Wireless Telecommunication ServicesNTT DoCoMo 324 78,732,000 1.74


PharmaceuticalsTakeda Chemical Industries 11,500 48,875,000 1.07Rohto Pharmaceutical 17,000 15,198,000 0.34Seikagaku 12,100 14,278,000 0.32

Total for Pharmaceuticals 1.73

Semiconductor EquipmentTokyo Electron 5,900 48,026,000 1.06Advantest 2,200 18,700,000 0.41Mimasu Semiconductor Industry 7,000 9,597,000 0.21


Computer Storage & PeripheralsJapan Cash Machine 12,000 33,720,000 0.75Toshiba 58,000 23,548,000 0.52


Technology DistributorsTokyo Electron Device 48 25,200,000 0.56Oki Electric Industry 41,000 17,179,000 0.38Nippon Antenna 17,000 13,583,000 0.30

Total for Technology Distributors 1.24

Drug RetailAin Pharmaciez 26,400 25,740,000 0.57Sugi Pharmacy 2,300 17,043,000 0.38Matsumotokiyoshi 2,300 5,531,500 0.12Matsumotokiyoshi New 2,300 5,531,500 0.12

Total for Drug Retail 1.19

Marketvalue



Statement of investments (continued)Transferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Japanese Yen.

Consumer ElectronicsSony 22,000 81,620,000 1.80Pioneer 10,000 29,600,000 0.65Alpine Electronics 16,400 23,648,800 0.52D&M Holdings 27,000 10,395,000 0.24


Diversified Commercial ServicesArrk 14,200 98,406,000 2.17Watabe Wedding 15,100 18,104,900 0.40Bellsystem 24 530 11,607,000 0.26Moc 14 8,092,000 0.18Moc New 14 8,092,000 0.18

Total for Diversified Commercial Services 3.19

IT Consulting & Other ServicesNet One Systems 68 56,100,000 1.24Obic 2,100 45,276,000 1.00NTT Data 57 23,085,000 0.51Niws 82 19,680,000 0.44


Specialty ChemicalsTaiyo Ink Manufacturing 9,000 34,380,000 0.76T&K Toka 15,900 34,185,000 0.76N E Chemcat 14,000 25,900,000 0.57Taiyo Kagaku 24,000 19,752,000 0.44Nippon Shokubai 21,000 17,073,000 0.38Asahi Denka Kogyo 13,000 10,062,000 0.22

Total for Specialty Chemicals 3.13

Auto Parts & EquipmentStanley Electric 44,300 91,922,500 2.03Musashi Seimitsu Industry 6,900 20,010,000 0.44Kayaba Industry 34,000 15,232,000 0.34Nippon Cable System 11,600 12,760,000 0.28

Total for Auto Parts & Equipment 3.09

RestaurantsSaint Marc 14,000 45,500,000 1.01Ichibanya 15,400 25,564,000 0.57Joyfull 15,500 23,637,500 0.52Origin Toshu 17,400 22,620,000 0.50Global-Dining 16,900 10,190,700 0.23Skylark 3,900 6,903,000 0.15Nippon Restaurant System 400 1,508,000 0.03

Total for Restaurants 3.01

Automobile ManufacturersToyota Motor 21,900 79,278,000 1.75Honda Motor 9,400 44,744,000 0.99

Total for Automobile Manufacturers 2.74

Systems SoftwareFuji Soft ABC 16,200 51,354,000 1.14Sun Japan 96 23,328,000 0.52Zuken 22,900 22,831,300 0.50CRC Solutions 12,700 15,938,500 0.35Toyo Business Engineering 4,000 8,480,000 0.19NEC System Technologies 400 1,968,000 0.04


% of netassets



Home Improvement RetailKomeri 14,500 35,960,000 0.80

Total for Home Improvement Retail 0.80

Office Services & SuppliesMeitec 8,300 34,196,000 0.76

Total for Office Services & Supplies 0.76

General Merchandise StoresRyohin Keikaku 8,900 32,218,000 0.71

Total for General Merchandise Stores 0.71

Personal ProductsMilbon 6,100 17,415,500 0.39Mandom 5,400 11,583,000 0.25

Total for Personal Products 0.64

Health Care SuppliesNakanishi 6,000 28,800,000 0.64

Total for Health Care Supplies 0.64

Application SoftwareSaison Information Systems 15,500 19,995,000 0.44Core 4,300 7,305,700 0.16


Tires & RubberFuKoKu 17,400 13,989,600 0.31Tokai Rubber Industries 8,000 12,176,000 0.27

Total for Tires & Rubber 0.58

Food RetailBelc 8,200 18,040,000 0.40Ozeki 1,000 4,200,000 0.09Daikokutenbussan 1,100 3,916,000 0.09

Total for Food Retail 0.58

Apparel RetailTsutsumi Jewelry 8,900 24,653,000 0.55

Total for Apparel Retail 0.55

DistributorsPaltac 16,000 23,520,000 0.52

Total for Distributors 0.52

Diversified Metals & MiningHitachi Powdered Metals 17,000 10,744,000 0.23Tocalo 3,700 9,823,500 0.22

Total for Diversified Metals & Mining 0.45

Photographic ProductsNoritsu Koki 5,600 20,496,000 0.45

Total for Photographic Products 0.45

Marketvalue




Packaged Foods & MeatsKibun Food Chemifa 24,000 33,264,000 0.74Yonekyu 10,500 10,689,000 0.24Rock Field 7,400 9,250,000 0.20

Total for Packaged Foods & Meats 1.18

Communications EquipmentNextCom KK 96 19,680,000 0.44Icom 8,800 17,864,000 0.39Aiphone 8,400 14,481,600 0.32


Food DistributorsDoutor Coffee 20,800 34,694,400 0.77Yutaka Foods 16,000 16,480,000 0.36

Total for Food Distributors 1.13

Commodity ChemicalsKaneka 33,000 26,400,000 0.58Arisawa Manufacturing 5,400 23,436,000 0.52

Total for Commodity Chemicals 1.10

Meat Poultry & FishAriake Japan 14,100 48,081,000 1.06

Total for Meat Poultry & Fish 1.06

TruckingAlps Logistics 26,000 47,840,000 1.06

Total for Trucking 1.06

Metal & Glass ContainersFuji Seal 8,400 35,448,000 0.78FP 5,300 9,911,000 0.22

Total for Metal & Glass Containers 1.00

TextilesSeiren 35,000 22,715,000 0.50Nagaileben 7,300 21,133,500 0.47

Total for Textiles 0.97

Construction & EngineeringJGC 27,000 30,186,000 0.67NEC System Integration & Construction 16,200 13,543,200 0.30

Total for Construction & Engineering 0.97

Air Freight & LogisticsYusen Air & Sea Service 13,900 39,893,000 0.88

Total for Air Freight & Logistics 0.88

Health Care DistributorsNichii Gakkan 6,500 39,520,000 0.87

Total for Health Care Distributors 0.87

Construction & Farm Machinery & Heavy TrucksTakeuchi Manufacturing 9,700 39,285,000 0.87

Total for Construction & Farm Machinery & Heavy Trucks 0.87

% of netassets




Health Care FacilitiesHeian Ceremony Service 26,000 19,370,000 0.43

Total for Health Care Facilities 0.43

Health Care EquipmentOlympus Optical 8,000 18,600,000 0.41

Total for Health Care Equipment 0.41

Environmental ServicesDaiseki 11,400 16,678,200 0.37

Total for Environmental Services 0.37

Computer & Electronics RetailK's Denki 7,900 15,247,000 0.34

Total for Computer & Electronics Retail 0.34

Trading Companies & DistributorsMarubun 25,200 14,968,800 0.33

Total for Trading Companies & Distributors 0.33

Gas UtilitiesShizuokaGas 35,000 13,790,000 0.30

Total for Gas Utilities 0.30

Computer HardwareFujitsu 17,000 10,744,000 0.24


Commercial PrintingToppan Forms 7,900 9,408,900 0.21

Total for Commercial Printing 0.21

Aerospace & DefenseSumitomo Precision Products 27,000 7,830,000 0.17

Total for Aerospace & Defense 0.17

Internet Software & ServicesIndex 8 5,040,000 0.11


AluminumNihon Ceratec 9 4,950,000 0.11

Total for Aluminum 0.11


Total NAV 4,522,662,812 100.00

% of netassets




Investment aimsTo seek long-term capital appreciation, measured in JapaneseYen, through investment in the securities of companies listed on the Exchanges and over-the-counter markets in Japan.

Industrial MachineryMitsubishi Heavy Industries 2,400,000 715,200,000 1.81Kurita Water Industries 500,000 646,500,000 1.64Minebea 1,000,000 544,000,000 1.38Amada 740,000 412,920,000 1.05Daifuku 835,000 399,965,000 1.01Tsubakimoto Chain 1,100,000 388,300,000 0.98Fuji Machine Manufacturing 129,000 175,440,000 0.45Fujitec 292,000 134,904,000 0.34


Electronic Equipment ManufacturersHitachi 1,550,000 1,001,300,000 2.54TDK 120,300 928,716,000 2.35Kyocera 113,000 806,820,000 2.04Ryosan 175,100 328,137,400 0.83Hitachi High-Technologies 129,200 219,640,000 0.56


Automobile ManufacturersNissan Motor 1,050,000 1,285,200,000 3.25Toyota Motor 340,400 1,232,248,000 3.12Suzuki Motor 427,500 678,015,000 1.72


Commodity ChemicalsKaneka 905,000 724,000,000 1.83Mitsubishi Chemical 2,220,000 619,380,000 1.57Denki Kagaku Kogyo Kabushiki Kaisha 1,700,000 586,500,000 1.49NIFCO 333,000 447,885,000 1.13Lintec 210,000 358,470,000 0.91Shin-Etsu Polymer 467,000 305,418,000 0.77

Total for Commodity Chemicals 7.70

Consumer ElectronicsMatsushita Electric Industrial 860,000 1,274,520,000 3.23Sony 205,000 760,550,000 1.93Casio Computer 590,000 669,060,000 1.69


Office ElectronicsRicoh 570,000 1,205,550,000 3.06Canon 240,000 1,197,600,000 3.03


PharmaceuticalsYamanouchi Pharmaceutical 255,600 851,148,000 2.15Sankyo 336,600 678,249,000 1.72Ono Pharmaceutical 161,600 651,248,000 1.65


Computer HardwareFujitsu 1,600,000 1,011,200,000 2.56NEC 1,200,000 946,800,000 2.40


Computer Storage & PeripheralsToshiba 2,550,000 1,035,300,000 2.62Mitsumi Electric 432,200 509,996,000 1.29


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19.28%19.96% 18.09% 25.19%

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Marketvalue


Statement of investmentsTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Japanese Yen.


Japanese Value Equity Fund




TOPIX Index (expressed in Japanese Yen)


Japanese Value Equity Fund

Construction & EngineeringObayashi 910,000 435,890,000 1.10Kyudenko 134,000 58,960,000 0.15Sanki Engineering 80,000 43,920,000 0.11


Electric UtilitiesTokyo Electric Power 223,200 524,520,000 1.33

Total for Electric Utilities 1.33

Consumer FinanceHitachi Capital 316,900 470,913,400 1.19

Total for Consumer Finance 1.19

Motorcycle ManufacturersYamaha Motor 370,000 432,530,000 1.10

Total for Motorcycle Manufacturers 1.10

Electrical Components & EquipmentFurukawa Electric 1,100,000 391,600,000 0.99


Meat Poultry & FishNippon Meat Packers 350,000 366,800,000 0.93

Total for Meat Poultry & Fish 0.93

TextilesNisshinbo Industries 570,000 340,290,000 0.86

Total for Textiles 0.86

Household AppliancesRinnai 113,400 288,603,000 0.73

Total for Household Appliances 0.73

Movies & EntertainmentToho 168,600 229,970,400 0.58

Total for Movies & Entertainment 0.58

Agricultural ProductsHouse Foods 186,000 225,618,000 0.57

Total for Agricultural Products 0.57

Marine Ports & ServicesMitsubishi Logistics 207,000 184,437,000 0.47

Total for Marine Ports & Services 0.47

Home FurnishingsSangetsu 7,000 14,280,000 0.04

Total for Home Furnishings 0.04


Total NAV 39,481,035,648 100.00

Marketvalue




Household DurablesSekisui Chemical 1,100,000 600,600,000 1.52Sekisui House 530,000 586,710,000 1.49

Total for Household Durables 3.01

Building ProductsDaikin Industries 320,000 792,000,000 2.01Sanwa Shutter 579,000 350,874,000 0.88

Total for Building Products 2.89

Photographic ProductsFuji Photo Film 295,000 1,020,700,000 2.59


Home Entertainment SoftwareNintendo 95,000 950,000,000 2.41

Total for Home Entertainment Software 2.41

Trading Companies & DistributorsMitsubishi 660,000 749,760,000 1.90Nagase & Company 249,000 176,541,000 0.45

Total for Trading Companies & Distributors 2.35

Specialty ChemicalsDaicel Chemical Industries 1,200,000 530,400,000 1.34Toyo INK Manufacturing 859,000 327,279,000 0.83


Leisure ProductsYamaha 400,300 842,631,500 2.13


Real Estate Management & DevelopmentMitsubishi Estate 720,000 731,520,000 1.85


Commercial PrintingDai Nippon Printing 370,000 556,850,000 1.41Nissha Printing 122,000 170,800,000 0.43


RailroadsEast Japan Railway 1,369 691,345,000 1.75

Total for Railroads 1.75

Integrated Telecommunication ServicesNippon Telegraph & Telephone 1,150 594,550,000 1.51


Food RetailFamilymart 227,600 555,344,000 1.41


SemiconductorsRohm 43,000 540,080,000 1.37


% of netassets



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

BrazilCompanhia de Bebidas das Americas ADR Pfd 426,150 10,862,564 5.42Petroleo Brasileiro ADR Pfd 406,979 10,813,432 5.39Companhia Vale do Rio Doce ADR Pfd 'A' 176,738 9,048,986 4.51Unibanco GDR 356,950 8,770,262 4.37Petroleo Brasileiro ADR 295,331 8,585,272 4.28Banco Itau Holding Financeira ADR Pfd 149,344 7,282,013 3.63Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR Pfd 262,000 6,366,600 3.17Companhia Energetica de Minas Gerais ADR non-vtg Pfd 248,908 4,574,929 2.28Brasil Telecom Participaçoes ADR Pfd 117,728 4,406,559 2.20Telesp Celular Participaçoes ADR Pfd 672,970 4,401,224 2.19Banco Bradesco ADR Pfd 157,000 4,129,100 2.06Aracruz Celulose ADR Pfd 'B' 91,200 3,273,168 1.63Telesp Celular Participaçoes Pfd 1,225,137,000 3,195,826 1.59Gerdau ADR Pfd 152,867 3,129,187 1.56Caemi Mineracao e Metalurgica Pfd 5,664,000 2,478,732 1.24Votorantim Celulose e Papel ADR Pfd 75,692 2,406,249 1.20Companhia Siderurgica Nacional ADR 38,152 2,045,329 1.02Usinas Siderurgicas de Minas Gerais Pfd 'A' 162,719 1,903,622 0.95Companhia Energetica de Minas Gerais Pfd 96,415,000 1,752,547 0.87Brasil Telecom Participaçoes Pfd 159,082,000 1,184,618 0.59Empresa Brasileira de Aeronautica ADR Pfd 24,400 863,516 0.43Banco Bradesco Pfd 124,454,000 651,861 0.33Klabin Pfd 437,400 566,721 0.28Votorantim Celulose e Papel Pfd 8,710,000 548,352 0.27Companhia Vale do Rio Doce ADR 6,320 368,140 0.18Banco Itau Holding Financeira Pfd 2,981,000 294,813 0.15Petroleo Brasileiro Pfd 6,720 176,915 0.09Companhia de Bebidas das Americas Pfd 694,000 176,728 0.09Empresa Brasileira de Aeronautica Pfd 10,000 88,560 0.05Companhia Vale do Rio Doce Pfd 'A' 772 39,159 0.03Brasil Telecom 2,824,556 15,524 0.01


MexicoAmerica Movil ADR 'L' 729,209 19,885,529 9.92Telefonos de Mexico ADR 'L' 503,860 16,697,920 8.33Grupo Televisa ADR 212,500 8,508,500 4.24Wal-Mart de Mexico 'V' 2,346,652 6,706,214 3.34Grupo Financiero BBVA Bancomer 'B' 6,666,864 5,657,489 2.82Cemex 'CPO' 647,941 3,402,434 1.70Wal-Mart de Mexico 'C' 1,197,260 3,231,540 1.61Alfa 'A' 865,700 2,604,392 1.30Grupo Aeroportuario del Sureste ADR 'B' 123,100 2,129,630 1.06Coca-Cola Femsa ADR 'L' 95,500 2,021,735 1.01Cemex ADR 'CPO' 75,750 1,992,225 0.99Grupo Financiero Banorte 'O' 327,200 1,137,187 0.57Grupo Mexico 'B' 250,300 641,452 0.32Carso Global Telecom 'A1' 406,192 567,369 0.28Controladora Comercial Mexicana 'UBC' 184,200 181,433 0.09Wal-Mart de Mexico ADR 'V' 3,213 91,731 0.05


ChileEnersis ADR 696,550 5,119,642 2.55Banco Santander Chile ADR 118,627 2,823,323 1.41Distribucion Y Servicio D & S ADR 127,638 2,625,514 1.31

Total for Chile 5.27

ArgentinaTenaris ADR 81,864 2,699,056 1.35


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58.88%59.78% 57.30% 73.51%

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Latin American Equity Fund




MSCI EMF Latin American Index (expressed in US dollars)


Latin American Equity Fund



PeruCompanhia de Minas Buenaventura ADR 72,900 2,074,005 1.03

Total for Peru 1.03

VenezuelaCompania Anonima Nacional Telefonos de Venezuela ADR 'D' 108,961 1,687,806 0.84




BrazilBanco Nacional Pfd (1) 2,698,000 0 0.00Companhia Vale Rio Doce (1) 17,692 0 0.00Lojas Arapua GDR 144A Pfd (1) 10,180 0 0.00Lojas Arapua Pfd (1) 58,205,100 0 0.00


Total other transferable securities not admitted to official exchange listing or dealt in on another regulated market 0 0.00


Total NAV 200,538,655 100.00


% of netassets



Investment aimsTo seek long-term capital appreciation, measured in US dollars,through investment primarily in equity securities of medium to large sized US companies.

PharmaceuticalsPfizer 59,600 2,090,172 3.83Wyeth 22,400 939,904 1.72Bristol-Myers Squibb 28,300 804,286 1.48Abbott Laboratories 5,200 242,164 0.45


Diversified BanksU.S. Bancorp 35,200 1,047,904 1.92Bank of America 12,400 998,200 1.83Comerica 10,200 574,362 1.05Wells Fargo & Co. 8,600 506,884 0.94

Total for Diversified Banks 5.74

Industrial ConglomeratesGeneral Electric 60,200 1,849,344 3.39Tyco International 39,000 1,046,370 1.92

Total for Industrial Conglomerates 5.31

Communications EquipmentCisco Systems 35,500 862,295 1.58Motorola 58,800 817,908 1.50Nokia ADR 13,400 228,068 0.42Qualcomm 3,200 175,296 0.32


Integrated Oil & GasTotal ADR 10,200 928,200 1.70Exxon Mobil 11,200 455,616 0.84Royal Dutch Petroleum 'NY' 7,000 365,680 0.67BP ADR 5,600 274,848 0.50

Total for Integrated Oil & Gas 3.71

Investment Banking & BrokerageMerrill Lynch & Co. 12,000 699,960 1.28Lehman Brothers Holdings 7,800 602,472 1.10Goldman Sachs Group 5,000 495,800 0.92

Total for Investment Banking & Brokerage 3.30

SemiconductorsAnalog Devices 16,000 731,040 1.34Intel 14,700 471,576 0.86Maxim Integrated Products 9,000 446,580 0.82Marvell Technology Group 3,700 138,824 0.25


Systems SoftwareMicrosoft 52,500 1,445,850 2.65Oracle 20,600 271,920 0.50


Computer HardwareDell 17,200 596,496 1.09International Business Machines 6,100 565,043 1.04Hewlett-Packard 23,300 534,269 0.98


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26.69%27.13% 25.46% 28.68%

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Marketvalue




US Equity Fund




S&P 500 Index (expressed in US dollars)


US Equity Fund

TobaccoAltria Group 19,800 1,069,794 1.96

Total for Tobacco 1.96

Household ProductsProcter & Gamble 10,100 1,006,667 1.85

Total for Household Products 1.85

Personal ProductsGillette 14,500 528,960 0.97Avon Products 6,500 439,010 0.81

Total for Personal Products 1.78

Movies & EntertainmentViacom non-vtg 'B' 17,800 778,750 1.43Walt Disney 7,900 184,070 0.34


Asset Management & Custody BanksMellon Financial 20,700 664,263 1.22Bank of New York 8,000 266,240 0.49

Total for Asset Management & Custody Banks 1.71

Integrated Telecommunication ServicesVerizon Communications 13,900 486,500 0.89SBC Communications 9,600 250,176 0.46


Heavy Electrical EquipmentGrafTech International 50,300 679,050 1.25

Total for Heavy Electrical Equipment 1.25

Data Processing & Outsourced ServicesFirst Data 16,400 668,300 1.23

Total for Data Processing & Outsourced Services 1.23

Health Care FacilitiesHCA 15,400 662,046 1.21


Computer & Electronics RetailBest Buy Co 12,400 652,860 1.20

Total for Computer & Electronics Retail 1.20

Regional BanksPNC Financial Services Group 11,200 613,312 1.12

Total for Regional Banks 1.12

Diversified Metals & MiningFreeport-McMoRan Copper & Gold 'B' 6,700 282,539 0.51Phelps Dodge 3,500 270,235 0.50


Marketvalue




Other Diversified Financial ServicesCitigroup 28,000 1,356,040 2.48Principal Financial Group 6,500 216,580 0.40

Total for Other Diversified Financial Services 2.88

Oil & Gas Equipment & ServicesHalliburton 29,600 776,112 1.42Schlumberger 13,100 727,574 1.33

Total for Oil & Gas Equipment & Services 2.75

Electric UtilitiesFirstEnergy 20,000 703,200 1.29Exelon 10,100 668,216 1.23


Home Improvement RetailHome Depot 35,800 1,263,382 2.32


Consumer FinanceMBNA 37,400 918,170 1.68American Express 6,500 313,885 0.58


Multi-line InsuranceAmerican International Group 12,800 845,056 1.55Hartford Financial Services Group 6,500 382,590 0.70

Total for Multi-line Insurance 2.25

Aerospace & DefenseUnited Technologies 7,000 662,200 1.21Honeywell International 9,000 297,090 0.54Northrop Grumman 2,800 265,916 0.50


Hypermarkets & Super CentersWal-Mart Stores 23,200 1,224,496 2.25

Total for Hypermarkets & Super Centers 2.25

Health Care EquipmentMedtronic 10,500 513,555 0.93Baxter International 8,600 261,010 0.48Boston Scientific 5,600 204,624 0.38Guidant 2,700 162,999 0.30


IT Consulting & Other ServicesAccenture 'A' 26,400 692,208 1.27Check Point Software Technologies 22,900 388,613 0.71


Soft DrinksCoca-Cola 21,300 1,076,076 1.97

Total for Soft Drinks 1.97

% of netassets


US Equity Fund

Semiconductor EquipmentApplied Materials 10,500 236,775 0.43


Health Care DistributorsCardinal Health 3,200 200,896 0.37


Insurance BrokersMarsh & McLennan 2,200 105,930 0.19

Total for Insurance Brokers 0.19

RestaurantsMcDonald's 4,200 104,076 0.19



Total NAV 54,528,276 100.00

Marketvalue




Industrial GasesAir Products & Chemicals 10,300 542,089 0.99

Total for Industrial Gases 0.99

Casinos & GamingPark Place Entertainment 24,800 270,568 0.50International Game Technology 7,100 253,328 0.46

Total for Casinos & Gaming 0.96

Managed Health CareAnthem 4,876 362,384 0.67Cigna 2,800 159,572 0.29

Total for Managed Health Care 0.96

Wireless Telecommunication ServicesVodafone Group ADR 20,600 509,850 0.94


Diversified ChemicalsEngelhard 16,900 507,507 0.93


Broadcasting & Cable TVComcast 'Special A' non vtg 15,700 485,130 0.89

Total for Broadcasting & Cable TV 0.89

Construction & Farm Machinery & Heavy TrucksCaterpillar 5,700 479,199 0.88


General Merchandise StoresTarget 12,100 464,398 0.85


Application SoftwareSAP ADR Pfd 6,100 253,760 0.47Mercury Interactive 3,200 154,400 0.28


Electrical Components & EquipmentCooper Industries 'A' 7,000 403,830 0.74


Internet RetailInterActiveCorp 11,900 402,339 0.74


BiotechnologyAmgen 5,000 310,050 0.57


Department StoresKohls 6,600 295,086 0.54

Total for Department Stores 0.54

% of netassets



Investment aimsTo seek long-term capital appreciation, measured in US dollars,through investment principally in growth oriented common stocksof large capitalisation US corporations and, to a limited extent,foreign corporations.

PharmaceuticalsPfizer 959,823 33,660,993 4.85Johnson & Johnson 286,884 14,737,231 2.12Abbott Laboratories 136,246 6,344,976 0.91Eli Lilly & Co. 67,658 4,798,982 0.69Merck & Co 68,503 3,116,887 0.45Wyeth 71,984 3,020,449 0.44Bristol-Myers Squibb 75,900 2,157,078 0.31Allergan 23,700 1,806,177 0.26


Systems SoftwareMicrosoft 1,452,776 40,009,451 5.76Oracle 525,590 6,937,788 1.00Veritas Software 131,300 4,893,551 0.71Novell 453,100 4,775,674 0.69


SemiconductorsIntel 678,659 21,771,381 3.14Analog Devices 220,350 10,067,792 1.45Texas Instruments 236,136 6,958,928 1.00Linear Technology 161,460 6,782,935 0.98Marvell Technology Group 120,700 4,528,664 0.65Maxim Integrated Products 47,400 2,351,988 0.34Broadcom 'A' 60,000 2,091,600 0.30Xilinx 47,600 1,859,732 0.27


Industrial ConglomeratesGeneral Electric 1,216,582 37,373,399 5.383M 170,280 14,351,198 2.07

Total for Industrial Conglomerates 7.45

Communications EquipmentCisco Systems 777,473 18,884,819 2.72Qualcomm 94,284 5,164,878 0.75Juniper Networks 93,900 1,737,150 0.25


Other Diversified Financial ServicesCitigroup 525,222 25,436,501 3.67


Investment Banking & BrokerageGoldman Sachs Group 134,954 13,382,039 1.93Lehman Brothers Holdings 95,150 7,349,386 1.06Charles Schwab 320,700 3,768,225 0.54


Internet RetaileBay 229,050 14,746,239 2.12InterActiveCorp 229,700 7,766,157 1.12


BiotechnologyAmgen 237,744 14,742,505 2.12Genzyme 61,200 3,018,996 0.44Gilead Sciences 41,146 2,392,228 0.34Idec Pharmaceuticals 35,000 1,292,900 0.19


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23.37%24.08% 22.15% 28.68%

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Marketvalue




US Equity Growth Fund







Application SoftwareMercury Interactive 143,650 6,931,112 1.00Peoplesoft 149,750 3,421,788 0.49


Diversified BanksWells Fargo & Co. 165,917 9,779,148 1.41


Consumer FinanceAmerican Express 198,152 9,568,760 1.38


Computer Storage & PeripheralsNetwork Appliance 228,800 4,704,128 0.68EMC 226,464 2,885,151 0.42Sandisk 28,500 1,749,615 0.25


Semiconductor EquipmentApplied Materials 286,974 6,471,264 0.93Novellus Systems 64,849 2,747,652 0.40


Specialty StoresBed Bath & Beyond 97,632 4,215,750 0.61Tiffany & Co 86,519 3,866,534 0.55


Internet Software & ServicesYahoo! 166,500 7,475,850 1.08


Apparel RetailTJX Companies 115,869 2,542,166 0.37Abercrombie & Fitch 'A' 96,500 2,400,920 0.35Chico's FAS 61,258 2,293,499 0.32


Data Processing & Outsourced ServicesFirst Data 113,090 4,608,417 0.66Paychex 69,900 2,576,514 0.38


RestaurantsMcDonald's 169,600 4,202,688 0.61Yum! Brands 84,669 2,915,154 0.42


IT Consulting & Other ServicesAccenture 'A' 266,450 6,986,319 1.01


Asset Management & Custody BanksBank of New York 205,112 6,826,127 0.98


Marketvalue




Multi-line InsuranceAmerican International Group 307,516 20,302,206 2.93


Soft DrinksCoca-Cola 270,947 13,688,242 1.97PepsiCo 135,865 6,334,026 0.92

Total for Soft Drinks 2.89

Computer HardwareDell 308,180 10,687,682 1.54International Business Machines 83,995 7,780,457 1.12Escrow Seagate Technology (1) 169,100 0 0.00


Health Care EquipmentBoston Scientific 150,300 5,491,962 0.79Medtronic 75,822 3,708,454 0.54Guidant 58,600 3,537,682 0.51St Jude Medical 56,150 3,439,188 0.50Inamed 36,265 1,766,468 0.25


Household ProductsProcter & Gamble 131,480 13,104,612 1.88Colgate-Palmolive 89,761 4,479,972 0.65


Broadcasting & Cable TVClear Channel Communications 160,704 7,427,739 1.07EchoStar Communications 'A' 158,250 5,391,578 0.77Univision Communications 'A' 120,088 4,761,489 0.69


General Merchandise StoresTarget 273,504 10,497,084 1.51Dollar Tree Stores 222,430 6,726,283 0.97


Managed Health CareUnitedHealth Group 127,374 7,363,491 1.06Anthem 89,834 6,676,463 0.96Caremark Rx 116,800 2,997,088 0.43


Home Improvement RetailHome Depot 335,452 11,838,101 1.70Lowe's Cos 69,191 3,802,045 0.55


Hypermarkets & Super CentersWal-Mart Stores 294,519 15,544,713 2.24

Total for Hypermarkets & Super Centers 2.24

Movies & EntertainmentViacom non-vtg 'B' 200,085 8,753,719 1.26News Corp ADR Pfd vtg 93,200 2,763,380 0.40


% of netassets




Integrated Oil & GasExxon Mobil 162,775 6,621,687 0.95


Oil & Gas Equipment & ServicesSmith International 146,162 6,188,499 0.89


Electrical Components & EquipmentEmerson Electric 82,250 5,330,622 0.77


BrewersAnheuser Busch 101,100 5,290,563 0.76

Total for Brewers 0.76

Air Freight & LogisticsUnited Parcel Service 'B' 70,000 5,190,500 0.75

Total for Air Freight & Logistics 0.75

Diversified Commercial ServicesApollo Group 'A' 75,500 5,133,245 0.74


Hotels Resorts & Cruise LinesCarnival 115,800 4,547,466 0.66

Total for Hotels Resorts & Cruise Lines 0.66



Health Care DistributorsAmerisourceBergen 45,300 2,876,550 0.41


Electronic Equipment ManufacturersAmphenol 'A' 40,300 2,572,349 0.37


Drug RetailWalgreen 51,906 1,876,402 0.27



Total NAV 693,983,138 100.00


% of netassets




Investment aimsTo seek to provide above average current income and long-termcapital appreciation, measured in US dollars, by investing inequity securities of companies in the US real estate industry.

Real Estate Investment TrustsSimon Property Group 141,130 6,542,787 8.13Avalonbay Communities 93,359 4,534,447 5.63Archstone-Smith Trust 154,641 4,320,670 5.37The Rouse Company 79,100 3,735,102 4.64Boston Properties 72,350 3,489,440 4.34Equity Office Properties Trust 118,632 3,430,837 4.26Public Storage 73,159 3,254,844 4.05AMB Property 92,000 3,077,400 3.83Federal Realty Investment Trust 74,600 2,919,098 3.63ProLogis 86,440 2,788,554 3.47Arden Realty 87,445 2,636,467 3.28Host Marriott 207,100 2,528,691 3.14Apartment Investment & Management 'A' 70,300 2,439,410 3.03Essex Property Trust 36,000 2,340,360 2.91Vornado Realty Trust 41,450 2,279,335 2.83Equity Residential Properties Trust 74,684 2,214,381 2.75Regency Centers 50,000 2,001,000 2.49Shurgard Storage Centers 'A' 50,100 1,898,790 2.36Taubman Centers 80,590 1,689,166 2.10General Growth Properties 58,800 1,639,932 2.04Wellsford Real Properties 36,000 672,840 0.84Macerich 13,800 610,098 0.76Post Properties 19,400 546,886 0.68Reckson Associates Realty 20,800 506,064 0.63Manufactured Home Communities 10,300 394,387 0.49Amli Residential Properties Trust 11,300 302,953 0.38Ventas 9,400 211,500 0.26SL Green Realty 4,950 202,752 0.25Correctional Properties Trust 3,600 104,364 0.13FelCor Lodging Trust 9,000 104,310 0.13Heritage Property Investment Trust 2,800 80,696 0.10Mack-Cali Realty 1,600 66,800 0.08Pan Pacific Retail Properties 400 19,372 0.02

Total for Real Estate Investment Trusts 79.03

Hotels Resorts & Cruise LinesStarwood Hotels & Resorts Worldwide 104,562 3,740,183 4.65Hilton Hotels 137,500 2,358,125 2.93La Quinta 7,200 46,872 0.06Interstate Hotels & Resorts 8,000 43,600 0.05


Real Estate Management & DevelopmentBrookfield Properties 183,760 5,277,587 6.56St Joe 7,400 280,978 0.35Forest City Enterprises 'A' 3,300 160,149 0.20




Hotels Resorts & Cruise LinesWyndham International Series B CV Pfd (1) 23,481 1,414,849 1.76Wyndham International Series II Pfd (1) 12,962 820,130 1.02


Real Estate Investment TrustsBeacon Capital Partners (1) 215,700 974,349 1.21Pacific Gulf Properties (1) 95,900 0 0.00


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35.77%36.56% 34.41% 37.13%

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US Property Fund




NAREIT (Equity) Index (expressed in US dollars)


US Property Fund


Statement of investments (continued)Other transferable securities not admitted to official exchange listing ordealt in on another regulated market. As at 31 December 2003,expressed in US dollars.

Internet Software & ServicesFrontLine Capital Group (1) 282,200 0 0.00


Real Estate Management & DevelopmentAtlantic Gulf Communities Ser144A Wts exp. 23/06/2004 (1) 54,018 0 0.00Atlantic Gulf Communities CP Pfd priv plmt (1) 54,017 0 0.00Atlantic Gulf Communities SerB CV Pfd (1) 38,385 0 0.00Atlantic Gulf Communities 'B' Wts exp. 23/06/2004 (1) 25,590 0 0.00Atlantic Gulf Communities 'C' Wts exp. 23/06/2004 (1) 25,590 0 0.00




Total NAV 80,450,421 100.00


% of netassets



Investment aims

Marketvalue


Statement of investmentsTo provide an attractive rate of return, measured in US dollars,by investing in the common stocks of small to medium sizedcorporations that the Company believes to be undervaluedrelative to the stock market in general at the time of purchasebut which have the potential for growth.

Oil & Gas Exploration & ProductionStone Energy 68,300 2,930,753 3.99Denbury Resources 87,400 1,211,364 1.65St. Mary Land & Exploration 22,900 665,245 0.91PetroKazakhstan 'A' 24,500 550,515 0.75Remington Oil & Gas non-vtg shs 26,100 529,830 0.72Cabot Oil & Gas 15,800 476,054 0.65

Total for Oil & Gas Exploration & Production 8.67

Industrial MachineryWatts Water Technologies 'A' 45,000 1,012,500 1.38Reliance Steel & Aluminum 28,300 981,444 1.34Circor International 33,300 802,530 1.09Albany International 'A' 23,200 793,440 1.08Flowserve 33,700 702,645 0.96


Diversified Commercial ServicesSchool Specialty 43,700 1,500,658 2.04Icon ADR 25,500 1,079,160 1.47Wackenhut Corrections 34,100 781,572 1.07Navigant International 41,900 586,600 0.80


Regional BanksCommunity First Bankshares 30,500 895,175 1.22Commerce Bancshares 15,540 765,811 1.04MB Financial 16,950 613,760 0.84Provident Bankshares 16,800 513,072 0.70Independent Bank 17,600 510,400 0.70Integra Bank 5,000 112,630 0.15


Real Estate Investment TrustsCousins Properties 23,300 721,601 0.98Capital Automotive 21,800 713,514 0.97Parkway Properties 15,400 662,970 0.90CarrAmerica Realty 19,700 596,910 0.81Catellus Development 1,817 44,255 0.07


Property & Casualty InsuranceProAssurance 25,600 842,240 1.15Penn-America Group 44,822 604,649 0.82NYMAGIC 16,000 430,560 0.59Direct General 12,600 414,792 0.56

Total for Property & Casualty Insurance 3.12

Broadcasting & Cable TVSinclair Broadcast Group 'A' 101,400 1,526,070 2.08Saga Communications 'A' 39,800 748,240 1.02


Hotels Resorts & Cruise LinesIntrawest 87,900 1,604,175 2.18Ambassadors Group 27,500 635,250 0.87


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US Small Cap Equity Fund*




Russell 2000 Index (expressed in US dollars)

* Fund renamed and investment objective changed on 1 August 2003 (formerly known as US SmallCap Value Fund). Prior to that date, the Fund’s investment aim was: “To provide an attractive rateof return, measured in US dollars, by investing in the common stocks of small to medium sizedcorporations that the Company believes to be undervalued relative to the stock market in generalat the time of purchase. The Fund will invest primarily in corporations domiciled in the US.”.


US Small Cap Equity Fund

RestaurantsAFC Enterprises 70,500 1,378,275 1.88


Diversified BanksFirst Niagara Financial Group 44,600 681,934 0.93R&G Financial 'B' 16,700 669,670 0.91


Computer Storage & PeripheralsStorage Technology 32,300 837,216 1.14Imation 14,200 493,450 0.67


Electronic Equipment ManufacturersVarian 19,600 815,752 1.11LoJack 63,700 510,237 0.70


Real Estate Management & DevelopmentLNR Property 26,500 1,317,050 1.79


Auto Parts & EquipmentTower Automotive 171,400 1,218,654 1.66


Electric UtilitiesPNM Resources 41,200 1,168,432 1.59


Apparel Accessories & Luxury GoodsRussell 63,100 1,128,859 1.54

Total for Apparel Accessories & Luxury Goods 1.54

BiotechnologySavient Pharmaceuticals 129,500 611,240 0.83Diversa 50,200 487,944 0.66


Communications EquipmentBlack Box 13,300 612,997 0.84EMS Technologies 19,700 421,580 0.57


Application SoftwareMSC.Software 88,300 849,446 1.16


Paper PackagingRock-Tenn 'A' 43,700 780,919 1.06

Total for Paper Packaging 1.06

Apparel RetailStage Stores 26,600 743,470 1.01


Marketvalue




Specialty StoresTBC 48,200 1,294,170 1.76Movie Gallery 46,600 884,934 1.21


Health Care ServicesApria Healthcare Group 75,300 2,143,791 2.92

Total for Health Care Services 2.92

Thrifts & Mortgage FinanceTriad Guaranty 19,700 984,212 1.33MAF Bancorp 16,100 694,554 0.95PFF Bancorp 12,100 446,490 0.61

Total for Thrifts & Mortgage Finance 2.89

Oil & Gas Equipment & ServicesUniversal Compression Holdings 50,400 1,356,768 1.85Superior Energy Services 75,800 723,132 0.98


Life & Health InsuranceReinsurance Group of America 52,100 2,020,438 2.75

Total for Life & Health Insurance 2.75

Gas UtilitiesAGL Resources 42,000 1,220,520 1.66UGI 21,200 721,860 0.99


TruckingLaidlaw International 87,300 1,191,645 1.62Overnite 30,800 679,448 0.93


Specialty ChemicalsCytec Industries 26,000 1,003,340 1.37OM Group 25,800 681,120 0.92


Aerospace & DefenseDRS Technologies 57,200 1,575,860 2.15


Office Services & SuppliesMoore Wallace 53,600 994,280 1.35Imagistics International 12,300 472,566 0.65


Construction & Farm Machinery & Heavy TrucksTerex 49,300 1,428,221 1.95


Agricultural ProductsDelta & Pine Land 27,600 702,420 0.96Corn Products International 19,800 697,950 0.95


% of netassets


US Small Cap Equity Fund

Packaged Food & MeatsCentral Garden and Pet 7,200 202,104 0.28

Total for Packaged Food & Meats 0.28


Total NAV 73,415,376 100.00

Marketvalue




Health Care SuppliesHanger Orthopedic Group 46,500 727,725 0.99

Total for Health Care Supplies 0.99

IT Consulting & Other ServicesMAXIMUS 17,500 693,175 0.94


Diversified Metals & MiningApex Silver Mines 31,100 668,961 0.91


Home FurnishingsFurniture Brands International 22,400 651,840 0.89


Systems SoftwareHummingbird 28,375 628,506 0.86


Data Processing & Outsourced ServicesCCC Information Services Group 36,000 615,600 0.84


Housewares & SpecialtiesTopps 56,700 595,350 0.81

Total for Housewares & Specialties 0.81

Electrical Components & EquipmentAmetek 12,000 581,280 0.79


FootwearMaxwell Shoe 'A' 31,366 553,610 0.75

Total for Footwear 0.75

Commercial PrintingBanta 12,300 499,872 0.68


Food DistributorsRiviana Foods 15,855 444,257 0.61

Total for Food Distributors 0.61

ReinsuranceIPC Holdings 9,500 370,500 0.50

Total for Reinsurance 0.50

Publishing & PrintingJournal Communications 'A' 19,400 361,616 0.49

Total for Publishing & Printing 0.49

PharmaceuticalsLigand Pharmaceuticals 'B' 21,800 326,346 0.44


% of netassets



Investment aims

Marketvalue


Statement of investments

US Small Cap Growth Fund


To seek long-term capital appreciation, measured in US dollars,by investing primarily in the common shares of small andmedium sized US companies and to a limited extent foreigncorporations that are early in their life cycle, but which havepotential to become major enterprises (emerging growthcompanies).

0

10

20

30

40

50

43.10%43.90% 41.64% 48.54%

I

A

B

I A B





Russell 2000 Growth Index (expressed in US dollars)

Diversified Commercial ServicesArbitron 107,898 4,526,321 2.24ITT Educational Services 52,651 2,474,070 1.23Corporate Executive Board 52,498 2,418,058 1.20Advisory Board (The) 59,600 2,052,624 1.02DeVry 57,577 1,441,152 0.72Strayer Education 11,101 1,167,270 0.58Viad 39,276 989,362 0.49Roto-Rooter 14,000 654,500 0.33


Application SoftwareSkillSoft ADR 241,354 2,063,577 1.02NETIQ 144,552 1,963,016 0.97Red Hat 71,800 1,355,584 0.67Quest Software 85,928 1,235,645 0.61Filenet 37,500 1,033,125 0.51Hyperion Solutions 32,927 1,008,554 0.50Informatica 93,460 981,330 0.49Verint Systems 36,250 815,625 0.41Serena Software 42,300 778,320 0.39MicroStrategy 'A' 13,900 734,615 0.37


Casinos & GamingGtech Holdings 81,333 3,998,330 1.99Wynn Resorts 112,150 3,160,387 1.57Station Casinos 74,427 2,264,814 1.12Alliance Gaming 37,600 949,400 0.47WMS Industries 30,351 807,944 0.40Shuffle Master 21,000 738,990 0.37

Total for Casinos & Gaming 5.92

Integrated Telecommunication ServicesNTL 66,218 4,559,771 2.26IDT 'B' 125,250 2,970,930 1.48PTEK Holdings 289,100 2,558,535 1.27


Health Care EquipmentDade Behring Holdings 137,903 4,957,613 2.46Immucor 91,750 1,889,133 0.94Inamed 34,751 1,692,721 0.84Idexx Laboratories 22,200 1,050,282 0.52


BiotechnologyGen-Probe 60,202 2,167,272 1.08NPS Pharmaceuticals 54,077 1,666,112 0.83Telik 68,213 1,521,832 0.76Digene 34,701 1,396,021 0.69Martek Biosciences 16,800 1,125,768 0.56CV Therapeuthics 34,400 510,840 0.25Celgene 10,897 491,346 0.24


Publishing & PrintingInteractive Data 180,515 2,996,549 1.49Media General 'A' 33,751 2,209,003 1.10Pulitzer 38,213 2,058,916 1.02R.H. Donnelley 27,400 1,097,096 0.54




SemiconductorsPower Integrations 31,576 1,071,374 0.53Rambus 33,300 996,003 0.49Actel 38,801 940,536 0.47PMC - Sierra 41,327 838,938 0.42O2Micro International 34,500 759,000 0.38Integrated Circuit Systems 25,751 734,934 0.37


Office Services & SuppliesImagistics International 126,702 4,867,891 2.42


Specialty StoresTractor Supply 51,107 2,021,282 1.00TBC 33,500 899,475 0.45Cost Plus 17,251 726,785 0.36


General Merchandise StoresTuesday Morning 89,951 2,726,415 1.35Fred's 25,796 808,963 0.41


Broadcasting & Cable TVRadio One 'D' 110,644 2,152,026 1.07Citadel Broadcasting 61,251 1,381,210 0.69


Environmental ServicesStericycle 66,152 3,105,836 1.54

Total for Environmental Services 1.54

Thrifts & Mortgage FinanceTierOne 66,777 1,557,240 0.77PMI Group 39,327 1,455,099 0.73


TruckingOvernite 90,000 1,985,400 0.99Landstar System 26,000 1,015,820 0.50


Regional BanksUCBH Holdings 38,226 1,513,750 0.75Provident Financial Services 77,027 1,485,081 0.74


Apparel Accessories & Luxury GoodsCarter's 81,000 2,097,900 1.04Oxford Industries 21,000 704,550 0.35


Industrial MachineryDionex 31,576 1,504,912 0.75Graco 26,001 1,046,800 0.52


Marketvalue




Oil & Gas Exploration & ProductionUltra Petroleum 194,204 4,876,462 2.42Evergreen Resources 53,752 1,773,816 0.88PetroKazakhstan 'A' 36,026 809,504 0.40Whiting Petroleum 44,600 796,556 0.40

Total for Oil & Gas Exploration & Production 4.10

Communications EquipmentSpectrasite 74,200 2,564,352 1.27Crown Castle International 215,354 2,366,740 1.18Sonus Networks 196,555 1,531,163 0.76Inter- Tel 31,676 807,738 0.40Emulex 27,843 751,204 0.37


PharmaceuticalsVCA Antech 102,352 3,171,888 1.58Taro Pharmaceutical Industries 29,073 1,863,289 0.93MGI Pharma 34,551 1,419,010 0.70Medicines 25,200 743,652 0.37Valeant Pharmaceuticals International 15,900 405,450 0.20


RestaurantsSonic 85,914 2,640,996 1.31P.F. Chang's China Bistro 28,726 1,500,646 0.75CEC Entertainment 20,300 969,325 0.48Chicago Pizza & Brewery 53,927 806,748 0.40Buffalo Wild Wings 29,100 756,600 0.38Checkers Drive-In Restaurant 52,400 542,340 0.27Steak N Shake 14,900 270,584 0.13


Internet Software & ServicesWebsense 58,400 1,701,192 0.84Neoforma 116,784 1,222,728 0.61Akamai Technologies 89,800 994,086 0.49Secure Computing 57,551 981,245 0.49Valueclick 89,179 827,581 0.41F5 Networks 28,100 717,674 0.36CNET Networks 92,228 645,596 0.32Warp Technology Holdings (1) 29,456 2,577 0.00


Semiconductor EquipmentBrooks Automation 53,501 1,304,889 0.65Cymer 24,626 1,143,385 0.57Varian Semiconductor Equipment Associates 22,700 1,007,653 0.50MKS Instruments 32,000 928,000 0.46Entegris 66,552 865,176 0.43Tessera Technologies 40,100 753,880 0.37


Health Care ServicesVistaCare 'A' 73,972 2,604,554 1.29Eclipsys 133,900 1,539,850 0.77Apria Healthcare Group 53,270 1,516,597 0.75

Total for Health Care Services 2.81

% of netassets



Aerospace & DefenseMoog 'A' 23,522 1,211,383 0.60


Systems SoftwareMicromuse 177,129 1,209,791 0.60


Catalog RetailBrookstone 49,625 1,100,683 0.55

Total for Catalog Retail 0.55

Electronic Manufacturing ServicesTrimble Navigation 29,000 1,081,990 0.54


Hotels Resorts & Cruise LinesKerzner International 27,486 1,067,556 0.53


Other Diversified Financial ServiceseSPEED 'A' 43,526 1,036,354 0.51


Asset Management & Custody BanksAffiliated Managers Group 14,444 1,013,535 0.50


Computer Storage & PeripheralsAvid Technology 21,000 1,009,050 0.50


Health Care FacilitiesGenesis HealthCare 33,600 767,760 0.38


Home FurnishingsSelect Comfort 29,601 741,801 0.37


Wireless Telecommunication ServicesDobson Communications 'A' 108,100 711,298 0.35


Internet RetailAutobytel 76,002 699,978 0.35


Consumer FinanceFirst Marblehead 31,300 687,974 0.34


Marketvalue




HomebuildingBrookfield Homes 83,152 2,200,202 1.10Levitt 'A' 7,700 150,612 0.07

Total for Homebuilding 1.17

Construction & Farm Machinery & Heavy TrucksChicago Bridge & Iron 'NY' 53,926 1,563,854 0.78Washington Group International 20,900 715,825 0.35


Property & Casualty InsuranceMarkel 8,766 2,200,091 1.09


Oil & Gas Equipment & ServicesMaverick Tube 98,452 1,913,907 0.95


Electronic Equipment ManufacturersAmphenol 'A' 18,026 1,150,600 0.57Planar Systems 30,200 751,980 0.37


Apparel RetailHOT Topic 37,064 1,091,535 0.55Urban Outfitters 18,700 712,283 0.35


Real Estate Management & DevelopmentMI Developments 'A' 58,000 1,623,420 0.81


Packaged Foods & MeatsJ&J Snack Foods 40,303 1,529,902 0.76


Food RetailPetco Animal Supplies 47,826 1,456,302 0.72


Computer HardwareMerge Technologies 39,600 715,968 0.36Intergraph 28,800 692,928 0.34


Leisure ProductsDick's Sporting Goods 28,225 1,383,025 0.69


Health Care DistributorsSpecialty Laboratories 72,000 1,234,800 0.61


% of netassets





AirlinesAirtran Holdings 53,200 637,868 0.32

Total for Airlines 0.32

GoldGlamis Gold 6,800 116,757 0.06

Total for Gold 0.06


Total NAV 201,342,256 100.00


% of netassets



Investment aims

Marketvalue



US Value Equity Fund*

To provide reasonable long-term capital growth. Investments willbe sought in equity securities that the Company believes to beundervalued relative to the stock market in general at the timeof purchase.

Integrated Telecommunication ServicesSprint-FON Group 955,700 15,539,682 4.87Verizon Communications 288,400 10,094,000 3.17SBC Communications 299,500 7,804,970 2.45Amdocs 18,800 421,684 0.13


PharmaceuticalsBristol-Myers Squibb 467,300 13,280,666 4.17GlaxoSmithKline ADR 158,700 7,304,961 2.29Pfizer 151,600 5,316,612 1.67Schering Plough 196,900 3,390,618 1.06Merck & Co 36,100 1,642,550 0.52Wyeth 38,900 1,632,244 0.51


Oil & Gas Equipment & ServicesHalliburton 532,900 13,972,638 4.38Schlumberger 209,100 11,613,414 3.65


Electric UtilitiesFirstEnergy 198,900 6,993,324 2.19TXU 234,900 5,553,036 1.74Exelon 73,600 4,869,376 1.53American Electric Power 41,700 1,272,267 0.40Centerpoint Energy 96,400 932,188 0.29


Diversified ChemicalsDow Chemical 222,600 9,139,956 2.87Du Pont (E.I.) de Nemours 119,700 5,477,472 1.72PPG Industries 30,000 1,906,800 0.59


Diversified BanksBank of America 88,500 7,124,250 2.23Wells Fargo & Co. 115,400 6,801,676 2.14


Thrifts & Mortgage FinanceFreddie Mac 206,600 11,997,262 3.76Fannie Mae 23,200 1,738,144 0.55


Integrated Oil & GasOccidental Petroleum 123,600 5,261,652 1.65Exxon Mobil 127,100 5,170,428 1.62ConocoPhillips 48,000 3,138,240 0.98


Paper ProductsInternational Paper 174,500 7,522,695 2.36Georgia Pacific 179,500 5,541,165 1.74

Total for Paper Products 4.10

0

5

10

15

20

25

30

28.15%28.93% 26.90% 28.68%

I

A

B

I A B



* Fund renamed on 3 February 2003 (formerly known as US Growth and Income Fund).








Auto Parts & EquipmentDelphi 360,100 3,604,601 1.13


Department StoresFederated Department Stores 46,300 2,185,823 0.69May Department Stores 46,000 1,318,360 0.41

Total for Department Stores 1.10

Apparel Accessories & Luxury GoodsJones Apparel Group 89,800 3,120,550 0.98


Health Care FacilitiesTenet Healthcare 184,100 2,929,031 0.92


Health Care DistributorsAmerisourceBergen 39,300 2,495,550 0.78


Life & Health InsuranceTorchmark 50,500 2,295,225 0.72


RestaurantsDarden Restaurants 100,300 2,113,321 0.66


RailroadsBurlington Northern Santa Fe 62,300 2,009,175 0.63

Total for Railroads 0.63

Automobile ManufacturersGeneral Motors 36,200 1,938,510 0.61


Computer Storage & PeripheralsLexmark International 24,000 1,883,040 0.59


Drug RetailCVS 51,300 1,833,462 0.58


Investment Banking & BrokerageMerrill Lynch & Co. 19,200 1,119,936 0.35Goldman Sachs Group 6,400 634,624 0.20


Marketvalue


Property & Casualty InsuranceChubb 66,400 4,515,200 1.42Allstate 94,300 4,057,729 1.27AMBAC Financial Group 33,700 2,325,974 0.73Travelers Property Casualty 'A' 56,400 947,520 0.30Berkshire Hathaway 'B' 100 281,500 0.09Travelers Property Casualty 'B' 9,600 161,472 0.05


Oil & Gas DrillingGlobalSantaFe 220,200 5,571,060 1.75Transocean 176,500 4,303,070 1.35

Total for Oil & Gas Drilling 3.10

Food RetailKroger 482,000 8,873,620 2.78


Household ProductsKimberly-Clark 122,200 7,190,248 2.26


Packaged Foods & MeatsKraft Foods 'A' 87,000 2,805,750 0.88Unilever 'NY' 43,300 2,790,252 0.88Sara Lee 69,500 1,500,505 0.47


Movies & EntertainmentWalt Disney 299,800 6,985,340 2.19


Other Diversified Financial ServicesCitigroup 128,000 6,199,040 1.94


Broadcasting & Cable TVLiberty Media 'A' 327,600 3,842,748 1.21Clear Channel Communications 40,800 1,885,776 0.59


Regional BanksPNC Financial Services Group 69,500 3,805,820 1.19Suntrust Banks 20,700 1,480,671 0.46


AluminumAlcoa 117,100 4,462,681 1.40

Total for Aluminum 1.40

Managed Health CareAetna 64,000 4,348,160 1.36


Computer HardwareHewlett-Packard 101,300 2,322,809 0.73International Business Machines 17,100 1,583,973 0.50


US Value Equity Fund



% of netassets

US Value Equity Fund



% of netassets


Electronic Manufacturing ServicesFlextronics International 62,300 913,318 0.29Jabil Circuit 25,600 726,272 0.22


Photographic ProductsEastman Kodak 63,300 1,604,022 0.50


Data Processing & Outsourced ServicesSungard Data Systems 36,800 1,024,144 0.32Affiliated Computer Services 'A' 10,200 554,880 0.18


Communications EquipmentNokia ADR 62,000 1,055,240 0.33JDS Uniphase 95,700 339,735 0.11


Diversified Capital MarketsJ.P. Morgan Chase & Co 35,900 1,316,453 0.41

Total for Diversified Capital Markets 0.41

Specialty StoresBoise Cascade 34,600 1,126,230 0.35


Apparel RetailLimited Brands 59,800 1,075,204 0.34


Systems SoftwareMicrosoft 36,100 994,194 0.31


Multi-Utilities & Unregulated PowerConstellation Energy Group 18,300 721,935 0.23

Total for Multi-Utilities & Unregulated Power 0.23

Semiconductor EquipmentNovellus Systems 11,100 470,307 0.15


SemiconductorsIntel 8,800 282,304 0.09



Total NAV 318,786,259 100.00



Investment aimsTo seek long-term capital appreciation, measured in US dollars,through investment primarily in equity securities of medium tolarge sized companies listed on the world’s stock exchanges.

United States of AmericaPfizer 268,173 9,404,827 3.17SPDR Trust Series 1 65,587 7,291,963 2.46Microsoft 246,518 6,789,106 2.29Citigroup 135,957 6,584,397 2.22General Electric 163,905 5,035,162 1.70Exxon Mobil 108,605 4,418,051 1.49International Business Machines 46,454 4,303,034 1.45Amgen 69,299 4,297,231 1.45Xerox 308,750 4,214,438 1.42J.P. Morgan Chase & Co 110,877 4,065,860 1.37Viacom non-vtg 'B' 88,578 3,875,287 1.31American International Group 56,320 3,718,246 1.25Applied Materials 163,719 3,691,863 1.24Bank of America 44,104 3,550,372 1.20Procter & Gamble 35,086 3,497,022 1.18Intel 106,652 3,421,396 1.15Walt Disney 143,313 3,339,193 1.13Emerson Electric 48,585 3,148,794 1.06Boeing 74,282 3,140,643 1.06iShares MSCI EAFE Index Fund 22,832 3,083,462 1.04Cisco Systems 125,659 3,052,257 1.03Motorola 218,861 3,044,356 1.03Marsh & McLennan 62,797 3,023,676 1.02FedEx 42,699 2,946,231 0.99Fannie Mae 38,559 2,888,840 0.97Oracle 211,051 2,785,873 0.94Mellon Financial 86,347 2,770,875 0.93Home Depot 70,980 2,504,884 0.84Alcoa 65,340 2,490,107 0.84Du Pont (E.I.) de Nemours 54,203 2,480,329 0.84Johnson & Johnson 48,100 2,470,897 0.83Travelers Property Casualty 'A' 132,474 2,225,563 0.75Target 57,435 2,204,355 0.74Schlumberger 38,101 2,116,130 0.71Office Depot 122,417 2,043,140 0.69InterActiveCorp 54,273 1,834,970 0.62Ford Motor 112,597 1,800,426 0.61Maxim Integrated Products 35,207 1,746,971 0.59Anthem 23,049 1,713,002 0.58Verizon Communications 48,363 1,692,705 0.57Parker Hannifin 28,365 1,683,463 0.57Altria Group 29,262 1,581,026 0.53Aetna 22,971 1,560,650 0.53Willis Group Holdings 44,050 1,506,510 0.51Janus Capital Group 90,900 1,499,850 0.51Wal-Mart Stores 24,023 1,267,934 0.43Schering Plough 42,870 738,221 0.25


JapanDaiwa Securities Group 629,000 4,289,238 1.44Mitsubishi Estate 330,000 3,136,242 1.06NTT DoCoMo 1,373 3,120,892 1.04Matsushita Electric Industrial 202,000 2,800,281 0.94Shin-Etsu Chemical 67,300 2,757,345 0.93Millea Holdings 199 2,606,052 0.88Sumitomo Trust & Banking 396,000 2,333,661 0.79SMC 14,900 1,859,277 0.63Fanuc 30,900 1,855,648 0.63TDK 24,000 1,733,128 0.58Dai Nippon Printing 115,000 1,618,961 0.55Fuji Television Network 282 1,529,956 0.52Takeda Chemical Industries 38,000 1,510,687 0.51Tokyo Electron 19,700 1,500,005 0.51Kao 68,000 1,386,652 0.47Denso 58,800 1,160,544 0.39


0

6

12

18

24

30

36

30.11%30.95% 28.90% 33.11%

I

A

B

I A B

Marketvalue


Statement of investmentsTransferable securities admitted to official exchange listing or dealt in on another regulated market. As at 31 December 2003, expressedin US dollars.


World Equity Fund






Marketvalue



Statement of investments (continued)

% of netassets

World Equity Fund

ItalyUniCredito Italiano 429,557 2,317,618 0.78


SingaporeFlextronics International 151,350 2,218,791 0.75


AustraliaQantas Airways 772,474 1,908,494 0.64


IsraelCheck Point Software Technologies 111,606 1,893,954 0.64


Hong KongSun Hung Kai Properties 159,000 1,315,903 0.44


SpainAmadeus Global Travel Distribution 'A' 166,534 1,081,154 0.36



Total NAV 296,590,165 100.00

Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 31 December 2003, expressedin US dollars.

United KingdomGlaxoSmithKline 239,013 5,467,226 1.84National Grid Transco 454,472 3,254,227 1.10Royal Bank of Scotland Group 91,582 2,693,395 0.91Amvescap 363,737 2,628,879 0.89HSBC Holdings 155,927 2,453,646 0.83British Sky Broadcasting 189,902 2,387,253 0.80Barclays 264,694 2,354,274 0.79Cadbury Schweppes 255,823 1,878,770 0.63Prudential 215,731 1,811,497 0.61BT Group 465,156 1,557,386 0.53Intercontinental Hotels Group 158,836 1,500,180 0.51WPP Group 145,851 1,433,716 0.48Tesco 2,937 13,471 0.00


GermanyVolkswagen 53,972 3,003,838 1.01E.ON 41,432 2,702,338 0.91BASF 46,489 2,612,568 0.88Siemens 32,125 2,571,545 0.87Porsche Pfd 4,083 2,421,780 0.82Deutsche Bank Regd 27,914 2,311,877 0.78SAP 11,053 1,855,234 0.63Deutsche Telekom Regd 97,708 1,787,207 0.60Deutsche Lufthansa 57,488 960,219 0.32


SwitzerlandNestlé Regd 15,051 3,760,620 1.27UBS Regd 53,492 3,663,599 1.23Novartis Regd 69,378 3,149,976 1.06Syngenta 35,582 2,396,685 0.81Holcim Regd 45,646 2,125,988 0.72Compagnie Financiere Richemont 'A' 63,110 1,515,620 0.51


NetherlandsKoninklijke Philips Electronics 170,785 5,011,988 1.69Royal Dutch Petroleum 86,317 4,541,780 1.53Wolters Kluwer 'CVA' 150,275 2,349,015 0.79Unilever 'CVA' 36,171 2,348,254 0.79


FranceTotal 20,682 3,814,294 1.29Schneider Electric 35,399 2,309,291 0.78BNP Paribas 34,773 2,165,003 0.73STMicroelectronics 49,509 1,334,348 0.45


FinlandNokia 189,320 3,271,985 1.10Stora Enso 'R' 161,536 2,174,793 0.74


NorwayTelenor 504,370 3,296,585 1.11


Marketvalue

% of netassets

Nominal inUS dollars

unlessspecifiedInvestment




Emerging Markets Debt Fund

Investment aimsTo seek to maximise total return, measured in US dollars, throughinvestment in the debt securities of government and government-related issuers located in emerging countries.

BrazilRepublic of Brazil unsecur unsubord 11% /2040 13,950,000 15,310,125 6.10Republic of Brazil unsecur unsubord SerB 8.875% /2024 13,570,000 13,179,862 5.25Republic of Brazil Brady C Ser20YR 8% /2014 10,904,136 10,777,539 4.29Republic of Brazil unsubord 14.5% /2009 7,260,000 9,510,600 3.79Republic of Brazil unsubord unsecur 11.25% /2007 5,730,000 6,704,100 2.67Republic of Brazil 12.25% /2030 4,260,000 5,293,050 2.11


Russian FederationRussian Federation unsubord SerRegS step cpn 5% to 31/03/2007 / 7.5% to 31/03/2030 32,594,846 31,291,052 12.47Russian Federation unsecur unsubord SerRegS 11% /2018 6,821,000 9,273,832 3.69Russian Federation unsecur unsubord SerRegS 12.75% /2028 2,990,000 4,792,426 1.91Russian Federation unsubord SerRegS 8.25% /2010 3,640,000 4,077,754 1.62Russian Federation unsubord Ser144A priv plmtstep cpn 5% to 31/03/2007/7.5% to 31/03/2030 10,000 9,637 0.01


MexicoUnited Mexican States 11.375% /2016 16,930,000 24,040,600 9.58United Mexican States global 8.375% /2011 7,190,000 8,545,114 3.40Pemex Project Funding Master Trust unsecur co gtd 9.125% /2010 4,170,000 4,972,725 1.98Petroleos Mexicanos unsubord SerP 9.5% /2027 2,600,000 3,113,500 1.25Pemex Project Funding Master Trust nts SerRegS 2.95% /2009 (1) 2,300,000 2,334,385 0.93Satelites Mexicanos sr nts SerB defaulted 10.125% /2004 4,975,000 2,263,625 0.90United Mexican States SerXW 10.375% /2009 1,470,000 1,866,900 0.74Petroleos Mexicanos debentures SerRegS 8.625% /2023 1,650,000 1,815,000 0.72United Mexican States restructured SerC 0% /2005 3,000,000 36,750 0.01United Mexican States restructured SerB 0% /2004 3,000,000 27,750 0.01United Mexican States restructured SerD 0% /2006 3,000,000 14,250 0.01


EcuadorRepublic of Ecuador SerRegS step cpn 7% to 15/08/2004 / 8% to 15/08/2005 / 9% to 15/08/2006 / 10% to 15/08/2030 13,540,000 10,512,510 4.19

Total for Ecuador 4.19

VenezuelaRepublic of Venezuela nts SerRegS 10.75% /2013 5,290,000 5,652,259 2.25Republic of Venezuela 9.25% /2027 2,820,000 2,580,300 1.03


PeruRepublic of Peru nts 9.875% /2015 4,165,000 4,852,225 1.93Republic of Peru 8.75% /2033 2,360,000 2,371,800 0.95

Total for Peru 2.88

TurkeyRepublic of Turkey nts 11.5% /2012 2,980,000 3,806,950 1.52Republic of Turkey unsecur sr unsubord 12.375% /2009 1,420,000 1,811,994 0.72Republic of Turkey 11.75% /2010 800,000 1,008,392 0.40


0

5

10

15

20

25

30

27.35%28.08% 26.08% 25.66%

I

A

B

I A B






JPM Emerging Markets Bond Index Global (expressed in US dollars)



ChileEmpresa Nacional de Petroleo nts SerRegS 6.75% /2012 4,060,000 4,505,354 1.80Empresa Nacional de Petroleo nts Ser144A privplmt 6.75% /2012 90,000 99,125 0.04

Total for Chile 1.84

South AfricaRepublic of South Africa unsecur nts 8.5% /2017 3,610,000 4,350,703 1.73


PhilippinesRepublic of Philippines 9.375% /2017 3,686,000 3,957,301 1.58

Total for Philippines 1.58

BulgariaRepublic of Bulgaria SerRegS 8.25% /2015 3,189,000 3,762,816 1.50

Total for Bulgaria 1.50

MalaysiaGovernment of Malaysia 7.5% /2011 2,980,000 3,527,146 1.41


PanamaRepublic of Panama global 9.375% /2029 1,740,000 1,957,500 0.78Republic of Panama global 9.625% /2011 1,325,000 1,537,000 0.61

Total for Panama 1.39

ColombiaRepublic of Colombia bnk gtd 9.75% /2011 2,996,091 3,415,543 1.36

Total for Colombia 1.36

ArgentinaRepublic of Argentina sr nts FRB 76.953% /2005 (1) 4,670,000 1,564,450 0.63Republic of Argentina govt gtd Brady SerL-GL FRB 2.0625%/2023 (1) 2,000,000 1,013,888 0.40Republic of Argentina govt gtd Brady SerL-GP 6% /2023 663,000 327,437 0.13


NigeriaCentral Bank of Nigeria Brady SerWW step cpn 6.25% to 15/11/2020 3,000,000 2,681,391 1.07Central Bank of Nigeria Wts exp. 15/11/2020 (2) 4,000 0 0.00

Total for Nigeria 1.07

IndonesiaPindo Deli Finance Mauritius co gtd defaulted 10.75% /2007 12,670,000 2,660,700 1.06


UkraineGovernment of Ukraine sr nts SerRegS 11% /2007 2,099,835 2,340,253 0.93

Total for Ukraine 0.93

Marketvalue

% of netassets

Holding/Nominal inUS dollars


QatarState of Qatar sr unsecur SerRegS 9.75% /2030 1,200,000 1,711,992 0.68

Total for Qatar 0.68

Dominican RepublicDominican Republic nts SerRegS 9.04% /2013 2,130,000 1,627,823 0.65

Total for Dominican Republic 0.65

South KoreaRepublic of Korea 4.25% /2013 1,635,000 1,556,332 0.62


TunisiaBanque Centrale de Tunisie unsubord 7.375% /2012 1,030,000 1,161,325 0.46

Total for Tunisia 0.46

Ivory CoastIvory Coast Ser20YR FLIRB 2% /2018 (1) 2,240,000 372,037 0.15

Total for Ivory Coast 0.15



IndonesiaTjiwi Kimia International co gtd defaulted 13.25% /2001 4,740,000 1,540,500 0.61Tjiwi Kimia Finance Mauritius co gtd defaulted 10% /2004 2,430,000 789,750 0.31


Russian FederationRussian FTO A/O Raznoexport defaulted loan 31/01/1993 1,033,834 1,048,049 0.42


ColombiaOccidente Y Caribe Rule 144A Wts exp. 15/03/2004 (2) 5,013 0 0.00


VenezuelaRepublic of Venezuela 0% Wts exp. 15/04/2020 (2) 16,850 0 0.00




Total NAV 250,992,165 100.00

(1) Variable coupon rates are those quoted as of 31 December 2003.(2) This security is valued at its fair market value.

Marketvalue

% of netassets




Emerging Markets Debt Fund



Investment aimsTo provide an attractive rate of return, measured in Euro, throughinvestment in Euro denominated fixed income securities of highquality issued by governments, agencies and corporations.

Government BondsFranceFrench Treasury Note BTAN 3% /2008 33,000,000 32,346,600 4.57Government of France OAT 5.5% /2010 26,000,000 28,427,100 4.01Government of France OAT 5.5% /2029 26,000,000 28,133,300 3.97French Treasury Note BTAN 4.5% /2006 25,000,000 26,007,500 3.67Government of France OAT 4% /2009 24,000,000 24,428,400 3.45Government of France OAT 5.25% /2008 22,000,000 23,601,600 3.33French Treasury Note BTAN 5% /2005 17,000,000 17,654,500 2.49


NetherlandsGovernment of Netherlands 5% /2012 36,000,000 38,102,400 5.38Government of Netherlands 5% /2011 34,000,000 36,043,400 5.09Government of Netherlands 3.75% /2009 28,000,000 28,113,400 3.97Government of Netherlands 5.75% /2007 23,000,000 24,812,400 3.50Government of Netherlands 4% /2005 11,000,000 11,255,200 1.59


ItalyRepublic of Italy 5% /2012 17,000,000 17,935,000 2.53Republic of Italy 4.5% /2009 15,000,000 15,582,750 2.20Republic of Italy 6% /2031 12,300,000 13,959,885 1.97


IrelandIrish Government (Treasury) 4.25% /2007 27,000,000 27,919,350 3.94


GermanyBundesrepublik Ser97 6.5% /2027 15,000,001 18,321,001 2.59


SpainGovernment of Spain 4.95% /2005 13,000,000 13,495,300 1.91


AustriaRepublic of Austria sr unsubord unsecur Ser2 4.65% /2018 8,500,000 8,536,550 1.21

Total for Austria 1.21

Total for Government Bonds 61.37

Corporate BondsNetherlandsUnilever unsecur unsubord co gtd SerEMTN 4.75% /2004 4,300,000 4,345,721 0.61Fixed-Link Finance secur SerG2-X 5.75% /2009 (1) 3,900,000 4,071,405 0.57RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 3,300,000 3,521,760 0.50Deutsche Telekom International Finance unsecur unsubord co gtd 6.625% /2011 3,050,000 3,483,558 0.49Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 2,800,000 2,907,592 0.41Allianz Finance II unsecur subord co gtd 6.125% /2022 (1) 2,500,000 2,668,755 0.37ABN Amro Bank subord SerEMTN 4.625% /2009 2,350,000 2,419,443 0.34

0

1

2

3

4

5

3.76%4.19% 2.71% 4.42%

I

A

B

I A B

Marketvalue

% of netassets

Nominal inEuro unless

specifiedInvestment


Euro Bond Fund





MSCI Euro Debt Index (expressed in Euro)


Corporate Bonds (continued)Netherlands (continued)Munich Re Finance unsecur subord co gtd 6.75% /2023 (1) 2,000,000 2,224,700 0.31E.On International Finance co gtd SerEMTN 5.75% /2009 2,000,000 2,169,900 0.31Aegon unsecur sr unsubord SerEMTN 4.625% /2008 2,100,000 2,164,365 0.31DaimlerChrysler International Finance sr unsecurunsubord co gtd SerEMTN 6.125% /2006 1,980,000 2,093,157 0.30Telefonica Europe co gtd SerEMTN 5.875% /2033 2,000,000 2,031,700 0.29Volkswagen International Finance unsecur sr unsubord co gtd SerEMTN 4.125% /2009 2,000,000 2,001,000 0.28Koninklijke Philips Electronics unsecur sr unsubord 5.75% /2008 1,850,000 1,978,113 0.28SNS Bank Nederland unsecur unsubord SerEMTN 6.125% /2010 1,700,000 1,878,755 0.27Olivetti Finance co gtd SerEMTN 6.575% /2009 1,550,000 1,683,533 0.24EADS Finance co gtd 5.5% /2018 1,500,000 1,516,035 0.21Cooper Industries Finance unsecur sr unsubord co gtd 6.25% /2005 1,300,000 1,364,848 0.19Akzo Nobel sr unsubord 4.25% /2011 1,300,000 1,273,545 0.18Rodamco Europe 3.75% /2010 1,000,000 957,290 0.14DSL Finance unsecur unsubord bnk gtd 5.75% /2009 (DEM) 1,650,000 917,787 0.13Generali Finance co gtd 5.0625% /2019 (1) 800,000 830,040 0.12Generali Finance unsecur sr unsubord co gtd 4.75% /2014 70,000 71,093 0.01


United KingdomJohn Hancock Global Fund secur SerEMTN 3.875% /2006 5,500,000 5,572,875 0.79RBS Capital Trust A bnk gtd 6.467% /2049 (1) 4,500,000 4,985,100 0.70BAT International Finance unsecur sr unsubordco gtd SerEMTN 5.125% /2013 3,500,000 3,461,500 0.48Prudential subord SerEMTN 5.75% /2021 (1) 3,000,000 3,156,150 0.45WPP Group unsecur unsubord SerMTN1 6% /2008 2,850,000 3,064,503 0.43ASIF III Jersey sr unsubord SerEMTN 4.75% /2013 3,000,000 3,032,850 0.43Royal Bank of Scotland sr subord SerEMTN 4.5% /2016 (1) 2,900,000 2,912,905 0.41Lloyds TSB Bank subord 5.625% /2049 (1) 2,711,000 2,875,455 0.41Barclays Bank subord nts SerEMTN 5.75% /2011 2,625,000 2,856,577 0.40HBOS subord 4.875% /2015 2,800,000 2,814,140 0.40National Grid Transco sr nts SerEMTN 5% /2018 2,500,000 2,394,000 0.34OTE co gtd SerEMTN 5% /2013 2,000,000 1,975,300 0.28SL Finance co gtd 6.375% /2022 (1) 1,800,000 1,937,904 0.27HSBC Capital Funding bnk gtd Ser144A priv plmt 8.03% /2049 (1) 1,200,000 1,459,938 0.21Aviva subord nts 5.25% /2023 (1) 1,100,000 1,101,210 0.16Credit Suisse unsecur subord 5.75% /2010 (DEM) 950,000 516,182 0.07John Hancock Global Fund secur SerEMTN 5.375% /2008 (DEM) 400,000 214,681 0.03


United States of AmericaGeneral Electric Capital unsecur sr unsubordSerEMTN 5.125% /2007 5,000,000 5,280,000 0.75


Corporate Bonds (continued)United States of America (continued)General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 4,000,000 4,205,400 0.59Procter & Gamble unsecur sr unsubord 5.75% /2005 4,000,000 4,202,400 0.59New York Life Funding secured sr nts SerEMTN 5.125% /2006 3,425,000 3,572,789 0.50Bank of America unsecur sr unsubord 4.25% /2010 3,500,000 3,494,225 0.49Ford Motor Credit sr nts SerEMTN 5.75% /2009 3,000,000 3,066,000 0.43Household Finance unsecur sr unsubord 5.125% /2009 2,900,000 3,039,490 0.43Goldman Sachs Group unsecur sr unsubord 6.5% /2010 2,250,000 2,490,502 0.35Merrill Lynch & Co. unsecur unsubord SerEMTN 5.375% /2009 (DEM) 3,700,000 1,980,798 0.28Countrywide Home Loans co gtd SerEMTN 2.75% /2006 2,000,000 1,943,000 0.27Zurich Finance USA unsecur co gtd SerEMTN 5.75% /2023 (1) 1,400,000 1,436,890 0.20Merrill Lynch & Co nts SerEMTN 5.25% /2008 1,205,000 1,271,877 0.18Citicorp subord SerEMTN 5.5% /2010 (DEM) 2,000,000 1,075,145 0.16Ford Motor Credit sr nts SerEMTN 6.75% /2008 1,000,000 1,064,450 0.15Hutchison Whampoa Finance co gtd 5.875% 2013 800,000 817,280 0.12


GermanyEurohypo secur Pfandbriefe Ser777 3.75% /2005 15,000,000 15,301,500 2.16Depfa Pfandbriefbank secur Ser478 5% /2006 10,000,000 10,488,500 1.48Kreditanstalt fuer Wiederaufbau unsecur 3.75% /2004 10,000,000 10,130,900 1.43Deutsche Bank unsecur 5.125% /2013 2,000,000 2,061,200 0.29


FranceDexia Municipal Agency secur collateralized SerEMTN 5.5% /2006 5,000,000 5,288,500 0.75Schneider Electric 3.75% /2004 3,500,000 3,513,622 0.50Veolia Environnement sr nts SerEMTN 5.875% /2008 2,590,000 2,774,796 0.39Axa subord 6.75% /2020 (1) 2,400,000 2,682,010 0.38Elf Aquitaine unsecur sr unsubord 4.5% /2009 1,600,000 1,649,600 0.23BNP Paribas subord nts SerEMTN 5.25% /2012 1,500,000 1,576,500 0.22GIE Suez Alliance unsecur sr unsubord 5.5% /2009 1,250,000 1,326,000 0.19Veolia Environnement sr nts SerEMTN 5.875% /2012 500,000 533,825 0.08Aventis unsecur sr unsubord SerEMTN 5% /2006 500,000 521,500 0.07


SpainBanco Santander Central Hispano secur collateralized 2.75% /2006 7,000,000 6,982,500 0.99Santander Central Hispano Issuances subord bnk gtd SerEMTN 6% /2011 2,500,000 2,741,125 0.38


Marketvalue

% of netassets


specifiedInvestment

Transferable securities admitted to official exchange listing or dealt in on another regulated market. As at 31 December 2003, expressedin Euro.

Marketvalue

% of netassets


specifiedInvestment

Euro Bond Fund


Corporate Bonds (continued)SwedenAssa Abloy nts SerEMTN 5.125% /2006 2,450,000 2,564,681 0.36Skandinaviska Enskilda Banken subord nts SerEMTN 4.125% /2015 (1) 1,200,000 1,182,876 0.17


ItalyBanca Monte dei Paschi di Siena subord nts SerEMTN 4.5% /2015 (1) 2,000,000 1,978,220 0.28Banca Intesa subord SerEMTN 5.85% /2014 (1) 1,500,000 1,617,881 0.23


LuxembourgSyngenta Luxembourg Finance (#2) unsecur unsubord co gtd 5.5% /2006 2,200,000 2,317,654 0.33

Total for Luxembourg 0.33

BelgiumSCA Coordination Center unsecur unsubord co gtd SerEMTN 5.375% /2007 850,000 899,749 0.13


SingaporeSingapore Telecommunications Ser144A priv plmt 6% /2011 700,000 748,298 0.11


Total for Corporate Bonds 29.76

Mortgage and Asset Backed SecuritiesUnited States of AmericaCitibank Credit Card Master Trust 4.875% /2005 (DEM) 17,100,000 8,994,018 1.27MBNA American Euro Structure 5.125% /2008 (DEM) 15,350,000 8,234,468 1.16Chase Credit Card Master Trust Ser1998-1 5.125% /2005 5,525,000 5,679,280 0.80General Motors Acceptance Swift Trust 1999-1 Ser144A priv plmt 5% /2005 3,000,000 3,082,803 0.44MBNA America Europe Ser6 4.375% /2004 2,000,000 2,023,189 0.29


Total for Mortgage and Asset Backed Securities 3.96


Total NAV 708,179,106 100.00

(1) Variable coupon rates are those quoted as of 31 December 2003.


Marketvalue

% of netassets


specifiedInvestment


Euro Bond Fund



Investment aimsTo provide an attractive rate of return, measured in Euro,primarily through investment in Euro denominated fixed incomesecurities of high quality issued by corporations and nongovernment related issuers.

Euro Medium Term NotesFrance Telecom unsecur sr unsubord SerEMTN 7% /2009 3,000,000 3,401,550 1.43France Telecom unsecur sr unsubord SerEMTN 8.125% /2033 2,600,000 3,340,090 1.41Ford Motor Credit sr nts SerEMTN 5.75% /2009 3,000,000 3,066,000 1.29Veolia Environnement nts SerEMTN 5.875% /2008 2,500,000 2,678,375 1.13RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 2,500,000 2,668,000 1.13BAT International Finance unsecur sr unsubord co gtd SerEMTN 5.125% /2013 2,500,000 2,472,500 1.04Deutsche Telekom International Finance unsecur unsubord co gtd SerEMTN 7.5% /2033 2,000,000 2,434,900 1.03Citigroup unsecur sr nts SerEMTN 2.265% /2008 (1) 2,400,000 2,398,764 1.01National Grid Transco nts SerEMTN 5% /2018 2,500,000 2,394,000 1.01WPP Group unsecur unsubord SerMTN1 6% /2008 2,100,000 2,258,055 0.95TPSA Eurofinance unsecur sr unsubord co gtd SerEMTN 6.625% /2006 2,100,000 2,236,815 0.94General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 2,100,000 2,207,835 0.93General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 2,000,000 2,112,000 0.89Olivetti Finance co gtd SerEMTN 7.75% /2033 1,700,000 2,077,230 0.88Arcelor Finance unsecur sr unsubord 5.125% /2010 2,000,000 2,014,600 0.85ISS Global unsecur unsubord SerEMTN 4.75% /2010 2,000,000 2,010,300 0.85JP Morgan Chase & Co nts SerEMTN 3.875% /2008 2,000,000 2,001,000 0.84EADS Finance co gtd 5.5% /2018 1,800,000 1,819,242 0.77Assa Abloy nts SerEMTN 5.125% /2006 1,675,000 1,753,404 0.74ING Bank unsecur subord nts SerEMTN 5.875% /2011 1,500,000 1,632,675 0.69Rolls-Royce unsecur sr unsubord SerEMTN 6.375% /2007 1,500,000 1,631,539 0.69Koningklijke KPN unsecur sr unsubord SerEMTN 7.25% /2006 1,500,000 1,629,225 0.69E.On International Finance co gtd SerEMTN 5.75% /2009 1,500,000 1,627,425 0.68Compass Group unsecur unsubord SerEMTN 6% /2009 1,500,000 1,623,294 0.68ASIF III Jersey sr unsubord SerEMTN 4.75% /2013 1,600,000 1,617,520 0.68Fortis Finance sr co gtd SerEMTN 4.625% /2009 1,500,000 1,558,538 0.66ABN Amro Bank subord SerEMTN 4.625% /2009 1,500,000 1,544,325 0.65Telefonica Europe co gtd SerEMTN 5.875% /2033 1,500,000 1,523,775 0.64Schneider Electric unsecur sr unsubord SerEMTN 6.125% /2007 1,400,000 1,521,870 0.64GUS unsecur sr nts SerEMTN 4.125% /2007 1,500,000 1,520,550 0.64Volkswagen International Finance unsecur sr unsubord co gtd SerEMTN 4.125% /2009 1,500,000 1,500,750 0.63Holcim Finance unsecur unsubord co gtd SerEMTN 4.375% /2010 1,500,000 1,488,180 0.63Vodafone Group unsecur sr unsubord SerEMTN 5% /2018 1,500,000 1,486,050 0.63Countrywide Home Loans co gtd SerEMTN 2.75% /2006 1,500,000 1,457,250 0.61Santander Central Hispano Issuances subord bnk gtd SerEMTN 6% /2011 1,300,000 1,425,385 0.60Stora Enso unsecur unsubord SerEMTN 6.375% /2007 1,300,000 1,412,116 0.60Imperial Tobacco Finance co gtd SerEMTN 6.25% /2007 1,250,000 1,343,750 0.57

0.0

1.5

3.0

4.5

6.0

7.5

9.0

8.24%8.68% 7.15% 7.19%

I

A

B

I A B

Marketvalue

% of netassets


specifiedInvestment



Euro Corporate Bond Fund




MSCI ECCI Index (expressed in Euro)



Euro Medium Term Notes (continued)OTE co gtd SerEMTN 5% /2013 1,350,000 1,333,328 0.56Rentokil Initial unsecur sr unsubord SerEMTN 5.75% /2007 1,250,000 1,327,750 0.56International Endesa sr unsecur unsubord co gtd SerEMTN 5.375% /2013 1,250,000 1,299,250 0.55Aegon unsecur sr unsubord SerEMTN 4.625% /2008 1,250,000 1,288,313 0.54MBNA Europe Funding bnk gtd SerEMTN 4.5% /2009 1,250,000 1,263,688 0.53Telekom Finanzmanagement co gtd SerEMTN 5% /2013 1,250,000 1,256,000 0.53Bertelsmann US Finance unsecur sr unsubordco gtd SerEMTN 4.625% /2010 1,250,000 1,254,063 0.53BAT International Finance unsecur co gtd SerEMTN 4.875% /2009 1,070,000 1,087,281 0.46Telecom Italia nts SerEMTN 6.25% /2012 1,000,000 1,087,100 0.46SNS Bank Nederland sr unsecur unsubord SerEMTN 6% /2007 1,000,000 1,086,200 0.45UPM-Kymmene unsecur sr nts SerEMTN 6.125% /2012 1,000,000 1,081,425 0.45Securitas unsecur sr unsubord SerEMTN 6.125% /2006 915,000 968,922 0.41DaimlerChrysler NA Holding unsecur sr unsubord co gtd SerEMTN 5.625% /2007 900,000 947,925 0.40Securitas unsecur sr unsubord SerEMTN 6.125% /2008 850,000 922,930 0.39John Hancock Global Fund secur SerEMTN 3.875% /2006 900,000 911,925 0.38Thomson CSF sr nts SerEMTN 6.125% /2005 800,000 839,696 0.35Olivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 700,000 807,030 0.34Citicorp subord SerEMTN 5.5% /2010 (DEM) 1,500,000 806,358 0.34New York Life Funding secured sr nts SerEMTN 5.125% /2006 750,000 782,362 0.33Dexia Municipal Agency secur collaterized SerEMTN 4.5% /2004 750,000 757,725 0.32MBNA Europe Funding bnk gtd SerEMTN 6.5% /2007 600,000 650,250 0.27Allied Domecq Financial Services co gtd SerEMTN 5.875% /2009 600,000 647,730 0.27SCA Coordination Center unsecur unsubord co gtd SerEMTN 5.375% /2007 600,000 635,117 0.27Allied Domecq Financial Services co gtd SerEMTN 5.5% /2006 500,000 524,675 0.23BG Transco unsecur sr unsubord SerEMTN 5.25% /2006 500,000 522,720 0.23VW Financial Services sr unsubord unsecur SerEMTN 5.375% /2012 500,000 522,700 0.22Merrill Lynch & Co nts SerEMTN 5.25% /2008 400,000 422,200 0.18Koninklikje Ahold unsecur sr unsubord SerEMTN 5.875% /2008 400,000 395,040 0.17Safeway unsecur unsubord SerEMTN 6.5% /2010 250,000 273,108 0.12TPSA EuroFinance co gtd SerEMTN 6.125% /2004 150,000 154,148 0.07

Total for Euro Medium Term Notes 41.64

Eurobond Fixed RateGovernment of France OAT 5.5% /2010 9,500,000 10,386,825 4.38Deutsche Telekom International Finance co gtd unsecur 7.5% /2007 3,500,000 3,915,975 1.64General Motors 8.375% /2033 3,000,000 3,461,258 1.46GIE Suez Alliance unsecur sr unsubord 5.5% /2009 2,550,000 2,705,040 1.14International Paper nts 5.375% /2006 2,325,000 2,419,032 1.02Lafarge unsubord 5.448% /2013 2,127,809 2,168,881 0.91

Marketvalue

% of netassets


specifiedInvestment


Eurobond Fixed Rate (continued)Syngenta Luxembourg Finance (#2) unsecur unsubord co gtd 5.5% /2006 2,050,000 2,159,632 0.91AT&T unsecur sr unsubord SerRegS 6.5% /2006 2,000,000 2,138,500 0.90Citibank Credit Card Issuance Trust 5.375% /2011 2,000,000 2,124,583 0.89Tyco International Group unsecur unsubord co gtd 6.125% /2007 2,000,000 2,096,784 0.88Bombardier Capital Funding unsecur sr co gtd 6.125% /2007 2,000,000 2,089,700 0.88Pemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 2,000,000 2,078,000 0.88Deutsche Bank unsecur 5.125% /2013 2,000,000 2,061,200 0.86Hutchison Whampoa Finance co gtd 5.875% /2013 2,000,000 2,043,200 0.86Chase Credit Card Master Trust Ser1998-1 5.125% /2005 1,884,520 1,937,143 0.82Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 1,825,000 1,895,127 0.80Altria Finance sr unsecur unsubord co gtd 5.625% /2008 1,800,000 1,855,530 0.78Hammerson unsecur sr unsubord 6.25% /2008 1,600,000 1,736,912 0.73VNU unsecur sr unsubord 6.625% /2007 1,500,000 1,636,425 0.69Koninklijke Philips Electronics unsecur sr unsubord 5.75% /2008 1,500,000 1,603,875 0.68Adecco Financial Service co gtd 6% /2006 1,500,000 1,579,425 0.67HBOS subord 4.875% /2015 1,500,000 1,507,575 0.64Akzo Nobel sr unsubord 4.25% /2011 1,500,000 1,469,475 0.62Pearson 6.125% /2007 1,000,000 1,073,600 0.45Degussa unsecur sr unsubord 5.125% /2013 1,050,000 1,055,827 0.45Cooper Industries Finance unsecur sr unsubordco gtd 6.25% /2005 1,000,000 1,049,883 0.44Rodamco Europe 3.75% /2010 1,000,000 957,290 0.40Sealed Air Finance II unsecur sr co gtd 5.625% /2006 900,000 937,800 0.40TI Group unsecur unsubord 6.375% /2005 819,000 855,474 0.36Altadis Finance co gtd 4.25% /2008 600,000 604,626 0.25SES Global unsecur sr unsubord co gtd 4.5% /2008 600,000 604,500 0.26Cegetel unsecur unsubord 4.75% /2004 408,000 410,040 0.18Corning nts Ser144A priv plmt 6.25% /2010 400,000 401,000 0.18Gap International unsecur unsubord co gtd 5% /2004 250,000 252,388 0.11Corning Ser144A priv plmt 5.625% /2005 100,000 102,000 0.05

Total for Eurobond Fixed Rate 27.57

Euromarket Step UpMunich Re Finance unsecur subord co gtd 6.75% /2023 (1) 2,750,000 3,058,963 1.28Royal Bank of Scotland sr subord SerEMTN 4.5% /2016 (1) 2,500,000 2,511,125 1.06Allianz Finance II unsecur subord co gtd 6.125% /2022 (1) 2,050,000 2,188,379 0.92SL Finance co gtd 6.375% /2022 (1) 2,000,000 2,153,227 0.92Fixed-Link Finance securSerG2-X 5.75% /2009 (1) 2,000,000 2,087,900 0.88HSBC Capital Funding / Jersey Channel Islandsco gtd subord 5.3687% /2014 (1) 2,000,000 2,037,120 0.86Aviva subord nts 5.25% /2023 (1) 2,000,000 2,002,200 0.85Linde Finance co gtd 6% /2013 (1) 1,865,000 1,880,449 0.79British Telecom step cpn 6.375% to 15/02/2006 1,550,000 1,647,767 0.69Banca Intesa subord SerEMTN 5.85% /2014 (1) 1,500,000 1,617,881 0.68National Westminster Bank unsecur subord SerEMTN 6.625% /2049 (1) 1,350,000 1,502,149 0.63Skandinaviska Enskilda Banken subord nts SerEMTN 4.125% /2015 (1) 1,500,000 1,478,595 0.63

Marketvalue

% of netassets


specifiedInvestment

Euromarket Step Up (continued)Banca Monte dei Paschi di Siena subord nts SerEMTN 4.5% /2015 (1) 1,300,000 1,285,843 0.54Zurich Finance USA unsecur co gtd SerEMTN 5.75% /2023 (1) 1,200,000 1,231,620 0.52Axa subord 6.75% /2020 (1) 1,000,000 1,117,504 0.47Prudential subord SerEMTN 5.75% /2021 (1) 1,000,000 1,052,050 0.44Michelin (C.G.D.E.) subord SerTSDR 6.375% /2033 (1) 1,000,000 1,022,844 0.43Lloyds TSB Bank subord 5.625% /2049 (1) 850,000 901,563 0.38Australia & New Zealand Banking Group subord nts SerEMTN 4.45% /2015 (1) 650,000 655,192 0.28

Total for Euromarket Step Up 13.25

Fixed Rate GlobalClear Channel Communications unsecur sr unsubord 6.5% /2005 2,100,000 2,195,340 0.93Household Finance unsecur sr unsubord 5.125% /2009 2,000,000 2,096,200 0.88Bank of America unsecur sr unsubord 4.25% /2010 2,000,000 1,996,700 0.84DaimlerChrysler NA Holding co gtd 7.3% /2012 (USD) 2,000,000 1,772,096 0.75Goldman Sachs Group unsecur sr unsubord 6.5% /2010 1,500,000 1,660,335 0.70Comcast sr unsecur co gtd 6.5% /2015 (USD) 1,750,000 1,508,667 0.64Ford Motor Credit nts 6.5% /2007 (USD) 1,700,000 1,434,211 0.60Starwood Hotels & Resorts Worldwide sr co gtd 7.875% /2012 (USD) 555,000 497,501 0.21Mantis Reef nts Ser144A priv plmt 4.692% /2008 (USD) 300,000 239,211 0.10Singapore Telecommunications Ser144A priv plmt 6% /2011 160,000 171,040 0.07

Total for Fixed Rate Global 5.72

US Corporate BondsAOL Time Warner 7.625% /2031 (USD) 1,675,000 1,521,395 0.64News America debentures 7.125% /2028 (USD) 1,500,000 1,300,917 0.56Altria Group nts 7% /2013 (USD) 800,000 674,088 0.28Tenet Healthcare unsecur sr nts 6.875% /2031 (USD) 850,000 603,482 0.25Farmers Exchange Capital nts Ser144A priv plmt 7.05% /2028 (USD) 575,000 423,368 0.18

Total for US Corporate Bonds 1.91


Total NAV 237,150,177 100.00


Marketvalue

% of netassets


specifiedInvestment






Government BondsFranceGovernment of France OAT 5.25% /2008 13,300,000 14,268,240 6.77Government of France OAT 5.5% /2010 12,500,000 13,666,875 6.49Government of France OAT 5.5% /2007 6,100,000 6,575,800 3.11Government of France OAT 5.5% /2029 6,000,000 6,492,300 3.08French Treasury Note BTAN 4.5% /2006 4,000,000 4,161,200 1.98French Treasury Note BTAN 3% /2008 3,600,000 3,528,720 1.68


NetherlandsGovernment of Netherlands 3.75% /2009 14,500,000 14,558,725 6.91Government of Netherlands 5% /2011 11,900,000 12,615,190 5.99Government of Netherlands 5% /2012 6,400,000 6,773,760 3.22Government of Netherlands 4% /2005 5,700,000 5,832,240 2.77


GermanyBundesobligation Ser138 4.5% /2006 17,500,000 18,213,125 8.65Bundesrepublik Ser97 6.5% /2027 6,400,000 7,816,960 3.70


ItalyRepublic of Italy 5% /2012 12,200,000 12,871,000 6.11Republic of Italy 4.5% /2007 3,600,000 3,751,020 1.78Republic of Italy 6% /2031 1,600,000 1,815,920 0.86


IrelandIrish Government (Treasury) 4.25% /2007 6,000,000 6,204,300 2.95


AustriaRepublic of Austria sr unsubord unsecur Ser2 4.65% /2018 3,300,000 3,314,190 1.57


BelgiumKingdom of Belgium Ser31 5.5% /2028 3,000,000 3,219,600 1.53


BulgariaBulgaria Brady debentures SerPDI FRN 1.9375% /2011 (1) (USD) 760,000 580,279 0.28

Total for Bulgaria 0.28

ColombiaRepublic of Columbia nts 10.75% /2013 (USD) 200,000 180,377 0.09



Corporate BondsUnited KingdomJohn Hancock Global Fund secur SerEMTN 3.875% /2006 1,000,000 1,013,250 0.48


Investment aimsTo provide an attractive rate of return, measured in Euro, throughmarket, instrument and currency selection. The Fund consists offixed income securities of varying maturities, denominatedprimarily in the Euro and other European currencies which areprobable candidates for joining the Economic and Monetary Unionat a later date.

0

1

2

3

4

5

6

5.15%5.60% 4.12% 4.42%

I

A

B

I A B

Marketvalue

% of netassets


specifiedInvestment



Euro Strategic Bond Fund




MSCI Euro Debt Index (expressed in Euro)


Corporate Bonds (continued)United Kingdom (continued)HSBC Capital Funding bnk gtd Ser144A priv plmt 8.03% /2049 (1) 800,000 973,292 0.46British SKY Broadcasting unsecur unsubord co gtd 7.75% /2009 (GBP) 585,000 891,884 0.42National Westminster Bank unsecur subord SerEMTN 6.625% /2049 (1) 800,000 890,162 0.42BAT International Finance unsecur sr unsubord co gtd SerEMTN 5.125% /2013 900,000 890,100 0.42ASIF III Jersey sr unsubord SerEMTN 4.75% /2013 800,000 808,760 0.39SL Finance co gtd 6.375% /2022 (1) 670,000 721,331 0.34WPP Group unsecur unsubord SerMTN1 6% /2008 650,000 698,922 0.33Compass Group unsecur unsubord SerEMTN 6% /2009 600,000 649,318 0.31Rentokil Initial unsecur sr unsubord SerEMTN 5.75% /2007 600,000 637,320 0.30GUS unsecur sr nts SerEMTN 4.125% /2007 600,000 608,220 0.29Hammerson unsecur sr unsubord 6.25% /2008 500,000 542,785 0.26Smiths Industries unsecur sr unsubord 7.25% /2016 (GBP) 325,000 530,548 0.25OTE co gtd SerEMTN 5% /2013 500,000 493,825 0.23MBNA Europe Funding bnk gtd SerEMTN 6.5% /2007 450,000 487,688 0.23National Grid Transco nts SerEMTN 5% /2018 500,000 478,800 0.23ABB International Finance unsecur sr unsubord SerEMTN 9.5% /2008 400,000 458,240 0.22Pearson 6.125% /2007 425,000 456,280 0.22Colt Telecom Group sr nts SerDBC 7.625% /2008 (DEM) 880,000 444,695 0.21Aviva subord nts 5.25% /2023 (1) 270,000 270,297 0.13Huntsman International unsecur sr subord SerEUR 10.125% /2009 150,000 147,750 0.07TI Group unsecur unsubord 6.375% /2005 80,000 83,563 0.05


United States of AmericaGeneral Motors 8.375% /2033 1,100,000 1,269,128 0.60Ford Motor Credit 5.25% /2008 (DEM) 2,000,000 1,031,173 0.49Merrill Lynch & Co. unsecur unsubord SerEMTN 5.375% /2009 (DEM) 1,810,000 968,985 0.46International Paper nts 5.375% /2006 700,000 728,311 0.35DaimlerChrysler NA Holding co gtd 7.3% /2012 (USD) 800,000 708,838 0.34Household Finance unsecur sr unsubord 5.125% /2009 650,000 681,265 0.32Clear Channel Communications unsecur srunsubord 6.5% /2005 650,000 679,510 0.32Goldman Sachs Group unsecur sr unsubord 6.5% /2010 550,000 608,790 0.29Corning nts Ser144A priv plmt 6.25% /2010 600,000 601,500 0.29AT&T unsecur sr unsubord SerRegS 6.5% /2006 450,000 481,163 0.23Starwood Hotels & Resorts Worldwide sr co gtd 7.875% /2012 (USD) 460,000 412,343 0.20AT&T Wireless Servicesunsecur sr nts 7.875% /2011 (USD) 450,000 411,823 0.20Xerox unsecur sr nts 9.75% /2009 350,000 402,063 0.19Zurich Finance USA unsecur co gtd SerEMTN 5.75% /2023 (1) 370,000 379,750 0.18Farmers Exchange Capital nts Ser144A priv plmt 7.05% /2028 (USD) 500,000 368,146 0.17


Corporate Bonds (continued)United States of America (continued)Tenet Healthcare unsecur sr nts 6.875% /2031 (USD) 450,000 319,491 0.15Bertelsmann US Finance unsecur sr unsubord co gtd SerEMTN 4.625% /2010 300,000 300,975 0.14Fort James unsecur co gtd 4.75% /2004 250,000 251,875 0.12Hutchison Whampoa Finance co gtd 5.875% 2013 200,000 204,320 0.10Tyco International Group unsecur unsubord co gtd 6.125% /2007 160,000 167,743 0.08Altria Group nts 7% /2013 (USD) 175,000 147,457 0.07


NetherlandsDeutsche Telekom International Finance co gtd unsecur 7.5% /2007 1,000,000 1,118,850 0.53TPSA EuroFinance co gtd SerEMTN 6.125% /2004 900,000 924,885 0.44RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 850,000 907,120 0.43Kappa Beheer sr subord co gtd Ser*Reg Ser144A priv plmt 10.625% /2009 750,000 806,250 0.38Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 650,000 674,977 0.32Gap International unsecur unsubord co gtd 5% /2004 650,000 656,207 0.31VNU unsecur sr unsubord 6.625% /2007 600,000 654,570 0.31Koninklijke Philips Electronics unsecur sr unsubord 5.75% /2008 600,000 641,550 0.30Allianz Finance II unsecur subord co gtd 6.125% /2022 (1) 600,000 640,501 0.30Fixed-Link Finance secur SerG2-X 5.75% /2009 (1) 600,000 626,370 0.30Telefonica Europe co gtd SerEMTN 5.875% /2033 550,000 558,717 0.27Munich Re Finance unsecur subord co gtd 6.75% /2023 (1) 500,000 556,175 0.26Sealed Air Finance II unsecur sr co gtd 5.625% /2006 385,000 401,170 0.19Koninklikje Ahold unsecur sr unsubord SerEMTN 5.875% /2008 380,000 375,288 0.18HeidelbergCement Finance sr co gtd Ser144A priv plmt 7.375% /2010 200,000 213,052 0.10Altadis Finance co gtd 4.25% /2008 200,000 201,542 0.10Olivetti Finance co gtd SerEMTN 7.75% /2033 150,000 183,285 0.09


FranceCegetel unsecur unsubord 4.75% /2004 1,500,000 1,507,500 0.71France Telecom unsecur sr unsubord SerEMTN 7% /2009 850,000 963,772 0.46Veolia Environnement nts SerEMTN 5.875% /2008 650,000 696,377 0.33France Telecom unsecur sr unsubord SerEMTN 8.125% /2033 525,000 674,441 0.32Axa subord 6.75% /2020 (1) 600,000 670,503 0.32Thomson CSF sr nts SerEMTN 6.125% /2005 600,000 629,772 0.30GIE Suez Alliance unsecur sr unsubord 5.5% /2009 300,000 318,240 0.15Alcatel unsecur unsubord 4.375% /2009 250,000 234,450 0.11Rhodia sr nts SerRegS 8% /2010 250,000 232,500 0.11Vivendi Universal sr nts SerREGS 6.25% /2008 200,000 210,960 0.10


Marketvalue

% of netassets


specifiedInvestment


Marketvalue

% of netassets


specifiedInvestment



Corporate Bonds (continued)GermanyDepfa Pfandbriefbank secur Ser478 5% /2006 3,000,000 3,146,550 1.49Deutsche Bank unsecur 5.125% /2013 550,000 566,830 0.27Messer Griesheim Holding sr nts 10.375% /2011 425,000 490,216 0.23Degussa unsecur sr unsubord 5.125% /2013 250,000 251,387 0.13


SpainBanco Santander Central Hispano secur 2.75% /2006 1,700,000 1,695,750 0.81Santander Central Hispano Issuances subord bnk gtd SerEMTN 6% /2011 600,000 657,870 0.31


LuxembourgSyngenta Luxembourg Finance (#2) unsecur unsubord co gtd 5.5% /2006 800,000 842,783 0.40Sogerim unsecur co gtd SerEMTN 6.125% /2006 500,000 531,300 0.25Arcelor Finance unsecur sr unsubord 5.125% /2010 450,000 453,285 0.22Holcim Finance unsecur unsubord co gtd SerEMTN 4.375% /2010 200,000 198,424 0.09SES Global unsecur sr unsubord co gtd 4.5% /2008 150,000 151,125 0.07


IrelandValentia Telecommunications co gtd 7.25% /2013 550,000 596,750 0.28JSG Funding unsecur sr nts SerEUR 10.125% /2012 400,000 448,500 0.22


SwitzerlandAdecco Financial Service co gtd 6% /2006 800,000 842,360 0.40


MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 650,000 675,350 0.32


SwedenAssa Abloy nts SerEMTN 5.125% /2006 500,000 523,404 0.25


Cayman IslandsAltria Finance sr unsecur unsubord co gtd 5.625% /2008 350,000 360,797 0.17


Marketvalue

% of netassets


specifiedInvestment


Corporate Bonds (continued)CanadaBombardier Capital Funding unsecur sr co gtd 6.125% /2007 190,000 198,521 0.09




Total NAV 210,629,408 100.00


Marketvalue

% of netassets


specifiedInvestment



Marketvalue

% of netassets


specifiedInvestment



ChemicalsMesser Griesheim Holding sr nts 10.375% /2011 1,530,000 1,782,450 2.20Ineos Group Holdings sr nts 10.5% /2010 1,055,000 1,207,975 1.49Huntsman ICI Chemicals unsecur sr subord SerEUR 10.125% /2009 1,000,000 985,000 1.21Rhodia sr subord Ser144A priv plmt 9.25% /2011 1,135,000 936,375 1.15Nalco sr nts Ser144A priv plmt 7.75% /2011 810,000 844,425 1.04Kronos International sr secur SerEUR 8.875% /2009 770,000 839,300 1.03Lucite International Finance sr nts SerA&B 10.25% /2010 655,000 730,325 0.90Ineos Vinyls Finance co gtd Ser144A priv plmt 9.125% /2011 600,000 622,745 0.77Huntsman International sr subord nts 10.125% /2009 500,000 492,500 0.61Avecia Group sr unsecur co gtd 11% /2009 (USD) 525,000 376,904 0.46Rhodia sr nts Ser144A priv plmt 8% /2010 380,000 351,500 0.43Equistar Chemicals / Equistar Funding unsecur sr nts 10.625% /2011 (USD) 220,000 193,717 0.24Nalco sr subord nts Ser144A priv plmt 9% /2013 140,000 146,650 0.18

Total for Chemicals 11.71

ManufacturingTyco International Group unsecur unsubord co gtd 6.125% /2007 1,840,000 1,936,600 2.39ABB International Finance unsecur sr unsubord SerEMTN 11% /2008 1,320,000 1,496,125 1.84Manitowoc unsecur sr subord 10.375% /2011 1,260,000 1,392,300 1.72Corning Ser144A priv plmt 5.625% /2005 845,000 861,900 1.06Flowserve Finance unsecur co gtd SerEUR 12.25% /2010 627,000 714,780 0.88Bombardier Capital Funding unsecur sr co gtd 6.125% /2007 550,000 571,054 0.70Flender Holding sr nts Ser144A priv plmt 11% /2010 475,000 523,738 0.65ABB International Finance sr 6.5% /2011 500,000 500,514 0.62Jenoptik sr nts Ser144A priv plmt 7.875% /2010 400,000 425,708 0.52Jacuzzi Brands sr nts secur Ser144A priv plmt 9.625% /2010 (USD) 440,000 385,689 0.48Amsted Industries sr nts Ser144A priv plmt 10.25% /2011 (USD) 295,000 259,757 0.32Oxford Industries sr nts Ser144A priv plmt 8.875% /2011 (USD) 130,000 113,309 0.14

Total for Manufacturing 11.32

Food & TobaccoKoninklikje Ahold unsecur sr unsubord SerEMTN 5.875% /2008 1,850,000 1,850,000 2.27Constellation Brands sr nts unsecur 8.5% /2009 (GBP) 740,000 1,153,291 1.42Barry Callebaut Services sr subord Ser144A priv plmt 9.25% /2010 860,000 954,600 1.18Altria Group nts 7% /2013 (USD) 520,000 438,021 0.54PPC Escrow sr subord nts Ser144A priv plmt 9.25% /2013 (USD) 515,000 423,856 0.52Delhaize America unsecur co gtd 8.125% /2011 (USD) 360,000 329,843 0.41Smithfield Foods unsecur sr nts SerB 8% /2009 (USD) 320,000 269,078 0.33Pilgrims Pride sr unsecur co gtd 9.625% /2011 (USD) 255,000 223,525 0.28

Total for Food & Tobacco 6.95

Forest ProductsBSN Financing sr unsubord co gtd SerEUR 10.25% /2009 990,000 1,074,150 1.32Kappa Beheer sr subord co gtd SerEUR step cpn 0% to 15/07/2004 / 12.5% to 15/07/2009 850,000 879,750 1.08Kappa Beheer sr subord co gtd Ser* 10.625%/2009 800,000 860,000 1.06

Transferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Euro.

Investment aimsTo provide an attractive rate of return, measured in Euro,through investments worldwide primarily in lower rated and unrated fixed income securities issued by governments,agencies and corporations that offer a yield above thatgenerally available on debt securities in the four highest ratingcategories of S&P or Moody’s denominated in Europeancurrencies.

0

5

10

15

20

25

30

26.84%27.27% 25.71% 28.27%

I

A

B

I A B


European Currencies High Yield Bond Fund




Merrill Lynch European Currency Constrained High Yield Index (expressed in Euro)


Forest Products (continued)Impress Metal Packaging sr subord 9.875% /2007 (DEM) 1,275,000 606,264 0.75Georgia-Pacific unsecur sr co gtd 8.875% /2010 (USD) 445,000 404,192 0.50Tekni-Plex secur sr nts Ser144A priv plmt 8.75% /2013 (USD) 425,000 353,155 0.44Tembec Industries sr unsecur co gtd 8.5%/2011 (USD) 325,000 268,126 0.33Owens-Brockway secur sr nts co gtd 7.75% /2011 (USD) 250,000 213,688 0.26Graphic Packaging International sr subord nts Ser144A priv plmt 9.5% /2013 (USD) 235,000 206,925 0.26Owens-Brockway Glass sr secur 8.75% /2012 (USD) 215,000 190,594 0.23Norampac sr nts 6.75% /2013 (USD) 165,000 137,107 0.17Pliant unsecur sr subord nts 13% /2010 (USD) 115,000 83,928 0.10

Total for Forest Products 6.50

CableTelenet Communications sr nts Ser144A priv plmt 9% /2013 1,860,000 1,934,400 2.38TVN Finance unsecur sr co gtd Ser144A priv plmt 9.5% /2013 1,000,000 1,010,281 1.25Diamond Holdings unsecur co gtd 10% /2008 (GBP) 380,000 549,039 0.68Charter Communications Holdings / Charter Communications Holdings Capital unsecur sr nts 9.625% /2009 (USD) 495,000 343,586 0.42Echostar DBS sr nts Ser144A priv plmt 6.375% /2011 (USD) 285,000 233,431 0.29Muzak / Muzak Finance sr nts Ser144A priv plmt 10% /2009 (USD) 250,000 212,201 0.26Renaissance Media Group unsecur sr disc co gtd step cpn 10% to 15/04/2008 (USD) 185,000 152,442 0.19Pegasus Satellite Communications sr nts SerB 9.75% /2006 (USD) 140,000 100,785 0.12Telenet Group Holding sr nts Ser144A priv plmt step cpn 0% to 15/12/2008 / 11.5% to 15/06/2014 (USD) 115,000 58,081 0.07Avalon Cable Holding Finance sr disc nts step cpn 11.875% to 01/12/2008 (USD) 47,266 39,744 0.05Pegasus Satellite Communications sr disc nts unsecur step cpn 0% to 01/03/2004 / 13.5% to 01/03/2007 (USD) 25,000 16,882 0.02

Total for Cable 5.73

TelecommunicationsColt Telecom Group sr nts SerDBC 7.625% /2008 (DEM) 3,600,000 1,849,854 2.28Alcatel unsecur unsubord 4.375% /2009 1,120,000 1,050,000 1.29AXtel unsecur sr co gtd Ser144A priv plmt 11% /2013 (USD) 540,000 439,077 0.54Song Networks Holding 50,164 373,092 0.46Avaya sr nts secur 11.125% /2009 (USD) 270,000 249,524 0.31Primus Telecommunications Group unsecur sr nts 11.25% /2009 (USD) 225,000 190,088 0.23Satelites Mexicanos sr nts SerB 10.125% /2004 (USD) 325,000 117,305 0.15Colt Telecom Group sr nts SerDTC 7.625% /2008 100,000 51,385 0.07KPNQwest sr unsecur CV 10% /2012 240 1 0.00Rhythms Netconnections unsecur sr disc nts SerB step cpn 13.5% to 15/05/2008 (2) (USD) 4,435,589 0 0.00Rhythms Netconnections unsecur sr nts SerB 14% /2010 (2) (USD) 2,754,331 0 0.00Exodus Communications unsecur sr nts 11.625% /2010 (2) (USD) 328,170 0 0.00

Marketvalue

% of netassets

Holding/Nominal in

Euro unlessspecifiedInvestment


Telecommunications (continued)XO Communications sr disc nts defaulted step cpn 0% to 01/06/2004 / 12.25% to 01/06/2009 (2) (USD) 2,270,000 0 0.00Jazztel Wts exp. 15/07/2010 (2) 1,500 0 0.00

Total for Telecommunications 5.33

HousingHeidelbergCement Finance sr co gtd Ser144A priv plmt 7.375% /2010 1,250,000 1,331,574 1.64Eco-Bat Finance co gtd sr Ser144A priv plmt 10.125% /2013 735,000 797,475 0.98American Standard sr unsecur unsubord co gtd 7.125% /2006 700,000 742,000 0.92Technical Olympic USA unsecur sr subord co gtd 10.375% /2012 (USD) 455,000 406,057 0.50Nortek Holdings sr nts Ser144A priv plmt step cpn 0% /2011 (1) (USD) 695,000 401,089 0.49Schuler Homes sr unsecur co gtd 9.375% /2009 (USD) 200,000 179,676 0.22CB Richard Ellis unsecur sr subord co gtd 11.25% /2011 (USD) 125,000 112,546 0.14CBRE Escrow unsecur sr nts Ser144A priv plmt 9.75% /2010 (USD) 125,000 110,562 0.14

Total for Housing 5.03

Wireless CommunicationsEricsson LM Telefon unsubord SerEMTN 9.875% /2008 (GBP) 610,000 906,230 1.12Nextel Communications unsecur sr nts 9.375% /2009 (USD) 610,000 529,867 0.66PTC International Finance II sr subord co gtd SerEUR 11.25% /2009 470,000 516,949 0.64Slovak Wireless Finance Company co gtd 11.25% /2007 450,000 484,406 0.60American Tower sr nts 9.375% /2009 (USD) 535,000 454,109 0.56SBA Communications unsecur sr nts 10.25% /2009 (USD) 390,000 304,736 0.38American Tower unsecur nts CV 6.25% /2009 (USD) 260,000 208,314 0.26Dobson Communications sr nts unsecur 10.875% /2010 (USD) 230,000 199,786 0.25Nextel Communications unsecur sr nts 7.375% /2015 (USD) 165,000 141,361 0.17SBA Telecommunications / SBA Communications sr disc nts Ser144A priv plmt step cpn 0% to 15/12/2007 / 9.75% to 15/12/20 (USD) 170,000 96,085 0.11SBA Communications unsecur sr disc nts step cpn 12% to 01/03/2008 (USD) 85,000 73,834 0.08

Total for Wireless Communications 4.83

Health Care Fresenius Medical Care Capital Trust III co gtd 7.375% /2008 2,300,000 1,258,289 1.55Safilo Capital International sr nts Ser144A priv plmt 9.625% /2013 1,190,000 1,035,300 1.28HCA unsecur sr nts 8.75% /2010 (GBP) 550,000 847,249 1.04Tenet Healthcare nts 7.375% /2013 (USD) 420,000 336,507 0.41Fisher Scientific International sr subord nts Ser144A priv plmt 8% /2013 (USD) 330,000 282,068 0.35

Total for Health Care 4.63

Diversified MediaYell Finance sr nts SerGBP 10.75% /2011 (GBP) 718,000 1,169,611 1.43EMI Group unsecur sr unsubord Ser144A priv plmt 8.625% /2013 805,000 848,464 1.05

Marketvalue

% of netassets

Holding/Nominal in





Marketvalue

% of netassets

Holding/Nominal in



RetailKoninklijke Vendex KBB co gtd sr subord Ser144A priv plmt 7.375% /2010 655,000 688,636 0.85Sonic Automotive unsecur sr subord nts SerB 8.625% /2013 (USD) 290,000 243,852 0.30Sonic Automotive sr subord nts Ser144A priv plmt 8.625% /2013 (USD) 260,000 218,626 0.27JC Penney Co unsecur debentures 7.95% /2017 (USD) 200,000 181,065 0.22Payless ShoeSource unsecur sr subord nts 8.25% /2013 (USD) 200,000 153,697 0.19JC Penney unsecur nts 8% /2010 (USD) 150,000 136,988 0.17JC Penney Co unsecur nts 7.6% /2007 (USD) 45,000 39,579 0.05JC Penney Co nts SerMTNA 6.875% /2015 (USD) 30,000 25,137 0.03

Total for Retail 2.08

Commercial ServicesBuhrmann unsecur sr subord co gtd 12.25% /2009 (USD) 650,000 580,081 0.72Iron Mountain unsecur sr subord co gtd 6.625% /2016 (USD) 500,000 387,712 0.48Allied Waste North America secur Ser144A priv plmt 6.5% /2010 (USD) 325,000 265,548 0.33Allied Waste North America co gtd SerB 8.875% /2008 (USD) 250,000 223,108 0.27Tempur-Pedic and Tempur Production USA sr subord nts Ser144A priv plmt 10.25% /2010 (USD) 175,000 155,482 0.19

Total for Commercial Services 1.99

EnergyAntargaz Finance sr nts SerREGS 10% /2011 520,000 592,800 0.73El Paso Production Holding unsecur sr co gtd Ser144A priv plmt 7.75% /2013 (USD) 430,000 337,696 0.42Hilcorp Energy I / Hilcorp Finance sr nts Ser144A priv plmt 10.5% /2010 (USD) 300,000 261,780 0.32Pemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 225,000 233,802 0.29Transcontinental Gas Pipe unsecur sr nts SerB 8.875% /2012 (USD) 55,000 51,811 0.07Northwest Pipeline sr unsecur co gtd 8.125% /2010 (USD) 50,000 44,225 0.05

Total for Energy 1.88

HouseholdJohnsondiversey sr subord nts SerEURO 9.625% /2012 1,245,000 1,375,725 1.70

Total for Household 1.70

Gaming & LeisureMGM Mirage co gtd sr nts 6% /2009 (USD) 250,000 204,764 0.25Venetian Casino Resort co gtd 11% /2010 (USD) 190,000 175,591 0.22

Total for Gaming & Leisure 0.47

BroadcastingTV Azteca sr nts SerB 10.5% /2007 (USD) 450,000 364,112 0.45Paxson Communications (USD) 205,702 15,053 0.02

Total for Broadcasting 0.47

Government BondsRepublic of Columbia nts 10.75% /2013 (USD) 135,000 122,352 0.15



Marketvalue

% of netassets

Holding/Nominal in


Diversified Media (continued)Vivendi Universal unsecur sr unsubord 7.5% /2005 (FRF) 2,700,000 426,296 0.53Dex Media disc nts Ser144A priv plmt step cpn 0% to 15/11/2008 / 9% to 15/11/2013 (USD) 570,000 319,907 0.39Dex Media East / Dex Media East Finance sr subord nts Ser144A priv plmt 12.125% /2012 (USD) 320,000 313,184 0.39Advanstar Communications secur sr nts Ser144A priv plmt 8.68% /2008 (1) (USD) 350,000 293,263 0.36EMI Group unsecur unsubord co gtd 8.25% /2008 (GBP) 140,000 207,410 0.26Advanstar Communications unsecur sr subord nts co gtd SerB 12% /2011 (USD) 125,000 104,985 0.13

Total for Diversified Media 4.54

TransportationTRW Automotive sr nts Ser144A priv plmt 10.125% /2013 700,000 805,000 0.99Lear unsecur sr nts 8.125% /2008 670,000 760,450 0.94Ford Motor Credit sr nts SerEMTN 5.75% /2009 650,000 664,099 0.82General Motors 8.375% /2033 500,000 585,211 0.72United Rentals North America sr subord nts Ser144A priv plmt 7.75% /2013 (USD) 500,000 407,048 0.50Laidlaw International sr nts Ser144A priv plmt 10.75% /2011 (USD) 205,000 184,575 0.23

Total for Transportation 4.20

Information TechnologyXerox unsecur sr nts 9.75% /2009 1,695,000 1,970,438 2.43Flextronics International sr subord nts 9.75% /2010 600,000 660,000 0.81

Total for Information Technology 3.24

UtilityAES sr nts 8.375% /2011 (GBP) 431,000 610,515 0.75Calpine Canada Energy Finance Ser1 8.375% /2008 795,000 584,325 0.72Fimep sr nts 11% /2013 220,000 263,450 0.32Nevada Power 2nd mortgage Ser144A priv plmt 9% /2013 (USD) 275,000 242,419 0.30PSEG Energy Holdings unsecur sr nts 8.625% /2008 (USD) 220,000 191,318 0.24TNP Enterprises sr unsecur subord nts SerB 10.25% /2010 (USD) 210,000 182,413 0.22Gulfterra Energy Partner unsecur co gtd 10.625% /2012 (USD) 164,000 161,970 0.20PSEG Energy Holdings unsecur nts 7.75% /2007 (USD) 60,000 50,750 0.07

Total for Utility 2.82

FinancialsJSG Funding unsecur sr nts SerEUR 10.125% /2012 1,275,000 1,447,125 1.78Sanitec International sr nts 9% /2012 500,000 500,000 0.62

Total for Financials 2.40

MetalsCrown European Holdings secur nts 10.25% /2011 1,275,000 1,453,500 1.79United States Steel sr nts 9.75% /2010 (USD) 270,000 242,028 0.30Murrin Murrin Holdings Property sr nts secur defaulted 9.375% /2007 (2) (USD) 905,000 72 0.00

Total for Metals 2.09




Diversified MediaVivendi Universal sr nts Ser144A priv plmt 9.5% /2010 575,000 670,355 0.83

Total for Diversified Media 0.83

Wireless CommunicationsDobson Communications Pfd Stock PIK 13% /2009 701 599,181 0.74Dobson Communications Pfd Stock Ser144A priv plmt 6% /2016 435 62,156 0.08Occidente Y Caribe Rule 144A Wts exp. 15/03/2004 (2) 14,970 0 0.00

Total for Wireless Communications 0.82

Broadcasting Paxson Communications Pfd Stock PIK 14.25% /2006 34 248,810 0.31

Total for Broadcasting 0.31

TelecommunicationsSong Networks Holding Pfd Stock CV 0% /2049 (2) 7,964 29,616 0.03XO Communications Pfd Stock PIK 14% /2009 27,911 221 0.00Intermedia Communications Pfd Stock SerB PIK 13.5% /2009 1 26 0.00Concentric Network Pfd Stock SerB PIK 13.5%/2010 2,167 17 0.00Maxcom Telecom sr unsecur co gtd step cpn 0% to 01/03/2006 / 10% to 01/03/2007 (2) (USD) 448 11 0.00Viatel sr disc nts step cpn defaulted 12.5%to 15/04/2008 (2) (USD) 10,435,000 0 0.00Esprit Telecom Group sr nts 11% /2008 (2) (DEM) 10,090,000 0 0.00XO Communications unsecur sr nts defaulted10.75% /2009 (USD) 1,350,000 0 0.00

Total for Telecommunications 0.03



Total NAV 81,130,049 100.00

(1) Variable coupon rates are those quoted as of 31 December 2003.(2) This security is valued at its fair market value.

Marketvalue

% of netassets

Holding/Nominal in


Statement of investments (continued)Other transferable securities not admitted to official exchange listing ordealt in on another regulated market. As at 31 December 2003,expressed in Euro.


75

Government BondsFranceGovernment of France OAT 5.5% /2010 (EUR) 12,600,000 17,366,290 5.54Government of France OAT 5.5% /2029 (EUR) 10,600,000 14,458,742 4.61French Treasury Note BTAN 4.5% /2006 (EUR) 8,900,000 11,671,479 3.72French Treasury Note BTAN 3% /2008 (EUR) 7,000,000 8,649,481 2.76


CanadaGovernment of Canada 5.25% /2012 (CAD) 15,200,000 12,326,717 3.93Government of Canada nts 0.7% /2006 (JPY) 900,000,000 8,531,584 2.72Province of Quebec 1.6% /2013 (JPY) 450,000,000 4,296,823 1.37Province of Ontario nts SerEMTN 1.875% /2010 (JPY) 350,000,000 3,480,137 1.11Governmernt of Canada SerWU42 5% /2004 (CAD) 3,500,000 2,753,912 0.88


United States of AmericaUS Treasury 5.5% /2028 10,800,000 11,262,375 3.59US Treasury 2% /2006 9,600,000 9,601,500 3.06US Treasury 6.5% /2006 6,600,000 7,353,844 2.35US Treasury 8.125% /2019 2,100,000 2,839,594 0.90


NetherlandsGovernment of Netherlands 5% /2012 (EUR) 7,300,000 9,739,799 3.11Government of Netherlands 5% /2011 (EUR) 6,400,000 8,552,717 2.73Government of Netherlands 4% /2005 (EUR) 5,500,000 7,094,153 2.26


Supra-NationalInter-American Development Bank unsecur 1.9% /2009 (JPY) 830,000,000 8,280,978 2.64International Bank for Reconstruction & Development 2% /2008 (JPY) 450,000,000 4,484,004 1.43European Investment Bank nts SerEMTN 2.125% /2007 (JPY) 300,000,000 2,993,265 0.95International Bank for Reconstruction & Development unsecur unsubord 4.75% /2004 (JPY) 300,000,000 2,932,931 0.94

Total for Supra-National 5.96

ItalyRepublic of Italy SerINTL 0.375% /2006 (JPY) 1,200,000,000 11,288,901 3.60Republic of Italy 6% /2031 (EUR) 3,000,000 4,292,154 1.37Republic of Italy nts 5% /2004 (JPY) 230,000,000 2,252,238 0.72


United KingdomUK Treasury 8.5% /2007 (GBP) 5,900,000 11,902,822 3.79UK Treasury 5% /2004 (GBP) 1,600,000 2,871,611 0.92


SpainKingdom of Spain nts 4.625% /2004 (JPY) 753,000,000 7,220,080 2.30


AustraliaNew South Wales Treasury govt gtd 7% /2004 (AUD) 5,400,000 4,067,498 1.30


Marketvalue

% of netassets





Investment aimsTo provide an attractive rate of return, measured in US dollars,through market, instrument and currency selection. The Fundconsists of domestic, international and Euromarket fixed incomesecurities of varying maturities denominated in US dollars andother currencies, including emerging markets.

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JPM Global Bond (Traded) Index (expressed in US dollars)


Government Bonds (continued)DenmarkKingdom of Denmark 6% /2009 (DKK) 21,000,000 3,943,052 1.26


SwedenSwedish Government Ser1043 5% /2009 (SEK) 26,000,000 3,750,399 1.20


GermanyBundesrepublik Ser97 6.5% /2027 (EUR) 2,200,000 3,387,333 1.08


ColombiaRepublic of Columbia nts 10.75% /2013 250,000 284,229 0.09



Corporate BondsUnited States of AmericaGeneral Electric Capital unsecur sr unsubord SerEMTN 0.2% /2004 (JPY) 204,000,000 1,908,893 0.60KFW International Finance unsecur unsubord bnk gtd 1% /2004 (JPY) 200,000,000 1,888,312 0.59Household Finance unsecur sr unsubordSerEMTN 6.5% /2009 (EUR) 750,000 1,052,097 0.34General Motors 8.375% /2033 (EUR) 700,000 1,018,095 0.32Corning Ser144A priv plmt 5.625% /2005 (EUR) 750,000 964,359 0.31Clear Channel Communications unsecur sr unsubord 6.5% /2005 (EUR) 700,000 922,482 0.29Ford Motor Company unsecur debentures 6.375% /2029 1,000,000 889,022 0.28Nationwide Mutual Insurance nts Ser144A priv plmt 7.5% /2024 850,000 873,596 0.28Goldman Sachs Group unsecur sr unsubord 6.5% /2010 (EUR) 600,000 837,207 0.27AT&T unsecur sr unsubord SerRegS 6.75% /2006 (EUR) 600,000 808,738 0.26AT&T Wireless Services sr nts unsecur 8.75% /2031 500,000 606,481 0.19Tenet Healthcare unsecur sr nts 6.875% /2031 625,000 559,375 0.18DaimlerChrysler NA Holding co gtd 7.3% /2012 500,000 558,476 0.18Farmers Exchange Capital nts Ser144A priv plmt 7.05% /2028 600,000 556,902 0.18Starwood Hotels & Resorts Worldwide sr co gtd 7.875% /2012 475,000 536,750 0.17PSEG Energy Holdings unsecur nts 7.75% /2007 500,000 533,125 0.17EOP Operating sr unsecur 7.875% /2031 450,000 526,217 0.17Time Warner unsecur sr co gtd 6.625% /2029 500,000 512,084 0.16Lenfest Communications unsecur sr nts 7.625% /2008 440,000 495,075 0.16News America debentures 7.125% /2028 400,000 437,316 0.14DR Horton sr nts 6.875% /2013 375,000 401,250 0.13Prudential Holdings 'C' Ser144A priv plmt 8.695% /2023 300,000 370,743 0.12Xerox unsecur sr nts 9.75% /2009 (EUR) 250,000 362,029 0.12Hutchison Whampoa Finance co gtd 5.875% /2013 (EUR) 270,000 347,714 0.11Corning nts Ser144A priv plmt 6.25% /2010 (EUR) 275,000 347,532 0.11

Marketvalue

% of netassets



Corporate Bonds (continued)United States of America (continued)Tyco International Group unsecur unsubord co gtd 6.125% /2007 (EUR) 250,000 330,401 0.11Echostar DBS sr nts Ser144A priv plmt 6.375% /2011 320,000 330,400 0.11World Financial Properties pass thru certs Ser144A priv plmt 6.91% /2013 291,742 322,548 0.10Echostar DBS unsecur sr nts 9.375% /2009 300,000 315,375 0.10GulfTerra Energy Partners unsecur sr subordco gtd SerB 8.5% /2010 255,000 290,700 0.09Cendant unsecur sr nts 7.375% /2013 250,000 287,103 0.09Hilton Hotels unsecur sr nts 7.625% /2012 250,000 282,187 0.09Weyerhaeuser unsecur nts 6.75% /2012 250,000 272,664 0.09Toys R US unsecur sr nts 7.375% /2018 270,000 270,264 0.09Altria Group nts 7% /2013 250,000 265,549 0.08Verizon Global Funding unsecur sr unsubord nts 7.75% /2030 225,000 263,546 0.08Electronic Data Systems unsecur nts 7.125% /2009 230,000 245,999 0.08Ford Motor Credit nts 7.25% /2011 200,000 216,279 0.07Smithfield Foods unsecur sr nts SerB 8% /2009 200,000 212,000 0.07Allied Waste North America sr subord nts SerB 8.5% /2008 170,000 189,975 0.06Schering-Plough nts 5.3% /2013 150,000 152,284 0.05Pulte Homes unsecur sr nts 6.375% /2033 150,000 146,915 0.05


NetherlandsBank Nederlandse Gemeenten unsecur srunsubord 0.8% /2008 (JPY) 400,000,000 3,781,488 1.21TPSA Eurofinance unsecur sr unsubord co gtd SerEMTN 6.625% /2006 (EUR) 750,000 1,007,046 0.32Deutsche Telekom International Finance co gtd unsecur 7.5% /2007 (EUR) 700,000 987,296 0.31Fixed-Link Finance secur SerG2-X 5.75% /2009 (1) (EUR) 700,000 921,202 0.29Munich Re Finance unsecur subord co gtd 6.75% /2023 (1) (EUR) 600,000 841,337 0.27RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 (EUR) 600,000 807,187 0.26VNU unsecur sr unsubord 6.625% /2007 (EUR) 500,000 687,626 0.22Allianz Finance II unsecur subord co gtd 6.125% /2022 (1) (EUR) 500,000 672,847 0.21Altadis Finance co gtd 4.25% /2008 (EUR) 200,000 254,064 0.09


United KingdomHBOS subord nts SerEMTN 0.55% /2013 (1) (JPY) 170,000,000 1,577,634 0.50BOC Group unsecur unsubord 1% /2006 (JPY) 160,000,000 1,513,553 0.48Tesco unsecur sr unsubord SerEMTN 0.7% /2006 (JPY) 120,000,000 1,130,969 0.36BAT International Finance unsecur sr unsubord co gtd SerEMTN 5.125% /2013 (EUR) 750,000 935,050 0.30National Grid Transco nts SerEMTN 5% /2018 (EUR) 700,000 845,005 0.27WPP Group unsecur unsubord SerMTN1 6% /2008 (EUR) 600,000 813,287 0.26NGG Finance sr unsecur unsubord co gtd 5.25% /2006 (EUR) 600,000 792,325 0.25MBNA Europe Funding bnk gtd SerEMTN 4.5% /2009 (EUR) 450,000 573,482 0.19

Marketvalue

% of netassets




Global Bond Fund


Corporate Bonds (continued)United Kingdom (continued)SL Finance co gtd 6.375% /2022 (1) (EUR) 400,000 542,872 0.17


AustriaOesterreichische Kontrollbank unsecur gvt gtd 1.8% /2010 (JPY) 500,000,000 4,956,270 1.58


IrelandDepfa ACS Bank secur 0.75% /2008 (JPY) 400,000,000 3,764,277 1.20


FranceFrance Telecom unsecur sr unsubord SerEMTN 7% /2009 (EUR) 800,000 1,143,465 0.36GIE Suez Alliance unsecur sr unsubord 5.5% /2009 (EUR) 575,000 768,916 0.25France Telecom unsecur sr unsubord SerEMTN 8.125% /2033 (EUR) 450,000 728,743 0.23Veolia Environnement nts SerEMTN 5.875% /2008 (EUR) 500,000 675,272 0.22


LuxembourgSyngenta Luxembourg Finance unsecur unsubord co gtd 5.5% /2006 (EUR) 500,000 664,008 0.21Arcelor Finance unsecur sr unsubord 5.125% /2010 (EUR) 500,000 634,901 0.20Holcim Finance unsecur unsubord co gtd SerEMTN 4.375% /2010 (EUR) 200,000 250,133 0.08


MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 (EUR) 1,000,000 1,309,763 0.42


CanadaBombardier Capital Funding unsecur sr co gtd 6.125% /2007 (EUR) 300,000 395,141 0.13Abitibi-Consolidated unsecur debentures 8.85% /2030 350,000 382,894 0.12Bowater Canada Finance unsecur co gtd 7.95% /2011 250,000 265,675 0.08Abitibi-Consolidated unsecur 8.55% /2010 200,000 222,863 0.07


SwitzerlandAdecco Financial Service co gtd 6% /2006 (EUR) 550,000 730,042 0.23


Cayman IslandsAltria Finance sr unsecur unsubord co gtd 5.625% /2008 (EUR) 500,000 649,745 0.21


Marketvalue

% of netassets




Corporate Bonds (continued)GermanyDeutsche Bank unsecur 5.125% /2013 (EUR) 450,000 584,628 0.19


AustraliaMantis Reef nts Ser144A priv plmt 4.692% /2008 500,000 502,582 0.16



Government Guaranteed BondsUnited States of AmericaFannie Mae SerEMTN 1.75% /2008 (JPY) 950,000,000 9,338,573 2.98Fannie Mae unsecur sr nts 2.125% /2007 (JPY) 200,000,000 1,987,501 0.63


JapanDevelopment Bank of Japan unsecur govt gtd SerINTL 1.4% /2012 (JPY) 400,000,000 3,792,174 1.21


Total for Government Guaranteed Bonds 4.82


Total NAV 313,574,180 100.00


Marketvalue

% of netassets



Global Bond Fund

Marketvalue

% of netassets

Holding/Nominal in





Other Diversified Financial ServicesKFW International Finance unsecur sr nts CV 0.875% /2007 2,400,000 2,432,400 1.16Hilton Group Finance Jersey co gtd CV 3.375% /2010 (GBP) 1,590,000 2,387,383 1.14Forester unsecur unsubord co gtd CV 3.75% /2009 (GBP) 1,280,000 2,305,395 1.10Starlight Finance co gtd SerLG CV 0.75% /2008 (USD) 2,740,000 2,236,602 1.07Liblife International unsecur CV 6.5% /2004 (USD) 2,120,000 1,730,494 0.83


Consumer FinanceAmerican Express sr nts Ser144A priv plmt step cpn CV 1.85% to 01/12/2006 / 0% to 01/12/2033 (USD) 7,570,000 6,282,812 3.00Providian Financial nts CV 0% /2021 (USD) 11,810,000 4,473,485 2.14


Diversified BanksStandard Chartered Finance Jersey subord CV 4.5% /2010 4,570,000 4,805,355 2.30BCP Finance Bank unsecur subord bnk gtd CV 4.75% /2011 4,640,000 4,611,001 2.20Bank Austria Creditanstalt CV 1.25% /2007 750,000 765,000 0.37


Electric UtilitiesScottish Power Finance co gtd SerRegS 4% /2049 (1) (USD) 6,450,000 5,110,471 2.44Duke Energy CV 1.75% /2023 (USD) 6,000,000 4,944,074 2.37


Construction & EngineeringVinci CV 2% /2018 4,936,500 4,914,286 2.35ABB International Finance SerABBN CV 3.5% /2010 (CHF) 6,930,000 4,745,254 2.27


PharmaceuticalsWyeth unsecur sr nts Ser144A priv plmt CV 0.71625% /2024 (1) (USD) 5,850,000 4,803,070 2.30Roche Holdings SerRegS CV 0% /2021 (USD) 9,810,000 4,752,940 2.27


Aerospace & DefenseBAE Systems unsubord CV 3.75% /2006 (GBP) 3,080,000 4,781,678 2.29Lockheed Martin sr nts Ser144A priv plmt CV 0.93% /2033 (1) (USD) 3,720,000 3,011,087 1.44BAE Systems Pfd Stock 7.75% /2010 350,000 609,807 0.29


Integrated Telecommunication ServicesCommonwealth Telephone Enterprises unsecurSer144A priv plmt CV 3.25% /2023 (USD) 4,270,000 3,425,383 1.64Colt Telecom Group sr unsubord SerDBC CV 2% /2005 (DEM) 5,240,000 2,893,503 1.38Colt Telecom Group sr nts SerRegS CV 2% /2007 800,000 868,000 0.41Colt Telecom Group SerRegS CV 2% /2006 800,000 852,000 0.41


Select Global Convertible Bond (Euro) Fund

Investment aimsTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Euro.

To seek long-term capital appreciation, measured in Euro,through investment primarily in convertible bonds issued bycompanies organised or operating in either the developed oremerging markets which will be denominated in globalcurrencies.

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


Electronic Equipment ManufacturersSanmina-SCI unsecur subord debentures CV 0% /2020 (USD) 8,620,000 3,504,482 1.67Solectron unsecur nts CV 0% /2020 (USD) 5,850,000 2,656,771 1.27


Multi-line InsuranceLoews unsecur subord nts CV 3.125% /2007 (USD) 4,520,000 3,451,134 1.65AXA subord CV 3.75% /2017 1,202,000 2,397,750 1.15


IT Consulting & Other ServicesGetronics unsubord CV 5.5% /2008 2,750,000 3,300,000 1.58Cap Gemini unsubord CV 2.5% /2010 4,404,000 2,428,807 1.16


Communications EquipmentAmerican Tower nts CV 5% /2010 (USD) 3,030,000 2,301,464 1.10CIENA sr nts unsecur CV 3.75% /2008 (USD) 3,130,000 2,281,205 1.09Juniper Networks unsecur subord nts CV 4.75% /2007 (USD) 1,127,000 916,369 0.44


Real Estate Management & DevelopmentGecina CV 3.25% /2006 2,690,000 2,873,189 1.37HLP International Treasury co gtd CV 3.4% /2007 (HKD) 19,990,000 2,346,468 1.12


Apparel Accessories & Luxury GoodsAdidas-Salomon co gtd CV 2.5% /2018 (1) 4,400,000 4,884,000 2.33


Airport ServicesBAA SerBAA CV 2.625% /2009 (GBP) 1,730,000 2,439,531 1.17BAA CV 2.94% /2008 (GBP) 1,810,000 2,419,789 1.16

Total for Airport Services 2.33

RestaurantsBrinker International unsecur sr debentures CV 0% /2021 (USD) 8,930,000 4,799,361 2.29


Publishing & PrintingVNU unsubord SerRegS CV 1.75% /2006 4,940,000 4,794,270 2.29


AdvertisingWPP Group unsecur sr CV 2% /2007 (GBP) 3,480,000 4,769,241 2.28

Total for Advertising 2.28

Health Care EquipmentMedtronic unsecur debentures CV 1.25% /2021 (USD) 5,730,000 4,687,500 2.24


Marketvalue

% of netassets


specifiedInvestment


ReinsuranceSwiss Re American Holding unsecur subord co gtd SerRegS CV 3.25% /2021 (1) (USD) 6,250,000 4,686,787 2.24


Application SoftwareComputer Associates International unsecur sr nts CV 5% /2007 (USD) 2,410,000 2,497,273 1.19Mercury Interactive unsecur nts CV 4.75% /2007 (USD) 2,730,000 2,157,514 1.03


Construction MaterialsHolcim Capital co gtd CV 0% /2017 (USD) 9,210,000 4,630,571 2.21

Total for Construction Materials 2.21

Food RetailKoninklijke Ahold subord CV 4% /2005 4,670,000 4,588,275 2.19


Packaged Foods & MeatsNestlé Holdings unsecur unsubord sr nts CV 0% /2008 (USD) 5,850,000 4,538,553 2.17


Gas UtilitiesEl Paso unsecur debentures CV 0% /2021 (USD) 6,550,000 2,416,111 1.15Panva Gas Holdings CV 2% /2008 (USD) 1,600,000 1,465,969 0.71


Diversified Capital Markets3i Group sr nts SerIII CV 1.375% /2008 3,670,000 3,624,125 1.73


Wireless Telecommunication ServicesNII Holdings sr nts Ser144A priv plmt CV 3.5% /2033 (USD) 3,130,000 2,976,430 1.42


Consumer ElectronicsSony CV 0% /2008 (JPY) 390,000,000 2,973,522 1.42


Electrical Components & EquipmentSPX unsecur sr nts CV 0% /2021 (USD) 4,350,000 2,363,755 1.13General Cable new money CV 5.75% /2013 (USD) 11,200 523,084 0.25


Auto Parts & EquipmentValeo unsubord SerFR CV 2.375% /2011 5,720,000 2,638,636 1.26


Marketvalue

% of netassets


specifiedInvestment




Drug RetailDuane Reade unsecur sr co gtd step cpn 2.1478% /2022 (1) (USD) 5,540,000 2,515,984 1.20


Agricultural ProductsSuedzucker International Finance CV 3% /2008 2,480,000 2,477,520 1.18


BiotechnologyAmgen unsecur sr nts CV 0% /2032 (USD) 4,050,000 2,437,678 1.17


SemiconductorsPMC - Sierra unsecur subord nts CV 3.75% /2006 (USD) 2,690,000 2,136,465 1.02


Multi-Sector HoldingsOesterreichische Industrieholding unsecur unsubord SerTKA CV 1.125% /2006 2,100,000 2,114,700 1.01

Total for Multi-Sector Holdings 1.01

Property & Casualty InsuranceTravelers Property Casualty unsecur subord nts Pfd stock CV 4.5% /2032 63,720 1,223,246 0.58Chubb Pfd Stock 7% /2006 27,600 629,462 0.31


Life & Health InsuranceConseco CV PIK 10.5% to 02/09/2004 / 11% to 31/12/2049 (USD) 83,000 1,715,175 0.82


Broadcasting & Cable TVLiberty Media unsecur sr debentures CV 0.75% /2023 (USD) 1,310,000 1,226,241 0.59


Diversified Metals & MiningInco unsecur nts CV 0% /2021 (USD) 1,290,000 1,112,863 0.53


Integrated Oil & GasAmerada Hess Pfd Stock 7% /2006 24,000 1,055,307 0.50


Office Services & SuppliesBuhrmann co gtd CV 2% /2010 830,000 857,805 0.41


Automobile ManufacturersBMW Finance co gtd sr CV 1.875% /2008 800,000 792,800 0.38


Marketvalue

% of netassets

Holding/Nominal in



TruckingYellow Roadway unsecur sr nts Ser144A priv plmt CV 3.375% /2023 (USD) 200,000 179,676 0.09



Total NAV 209,214,455 100.00


Marketvalue

% of netassets


specifiedInvestment






Marketvalue

% of netassets



Consumer FinanceAmerican Express sr nts Ser144A priv plmt step cpn CV 1.85% to 01/12/2006 / 0% to 01/12/2033 2,920,000 3,055,050 3.03Providian Financial nts CV 0% /2021 3,410,000 1,628,275 1.61


Electric UtilitiesScottish Power Finance co gtd SerRegS 4% /2049 (1) 2,330,000 2,327,204 2.31Duke Energy CV 1.75% /2023 1,770,000 1,838,588 1.83


Other Diversified Financial ServicesKFW International Finance unsecur sr nts CV 0.875% /2007 (EUR) 700,000 894,333 0.89Hilton Group Finance Jersey co gtd CV 3.375% /2010 (GBP) 460,000 870,683 0.86Forester unsecur unsubord co gtd CV 3.75% /2009 (GBP) 370,000 840,068 0.83Starlight Finance co gtd SerLG CV 0.75% /2008 790,000 812,910 0.81Liblife International unsecur CV 6.5% /2004 550,000 565,945 0.56


Diversified BanksStandard Chartered Finance Jersey subord CV4.5% /2010 (EUR) 1,400,000 1,855,729 1.83BCP Finance Bank unsecur subord bnk gtd CV 4.75% /2011 (EUR) 1,440,000 1,803,919 1.79Bank Austria Creditanstalt CV 1.25% /2007 (EUR) 250,000 321,453 0.32


Construction & EngineeringVinci CV 2% /2018 (EUR) 1,530,000 1,920,039 1.90ABB International Finance SerABBN CV 3.5% /2010 (CHF) 2,160,000 1,864,478 1.85


PharmaceuticalsRoche Holdings SerRegS CV 0% /2021 3,000,000 1,832,280 1.82Wyeth unsecur sr nts Ser144A priv plmt CV 0.71625% /2024 (1) 1,750,000 1,811,250 1.79


Aerospace & DefenseBAE Systems unsubord CV 3.75% /2006 (GBP) 940,000 1,839,648 1.82Lockheed Martin sr nts Ser144A priv plmt CV 0.93% /2033 (1) 1,440,000 1,469,333 1.46BAE Systems Pfd Stock 7.75% /2010 110,000 241,598 0.24


Integrated Telecommunication ServicesColt Telecom Group sr unsubord SerDBC CV 2% /2005 (DEM) 2,020,000 1,406,117 1.39Commonwealth Telephone Enterprises unsecurSer144A priv plmt CV 3.25% /2023 1,130,000 1,142,713 1.13Colt Telecom Group sr nts SerRegS CV 2% /2007 (EUR) 200,000 273,550 0.27Colt Telecom Group SerRegS CV 2% /2006 (EUR) 200,000 268,508 0.27



Investment aims

Select Global Convertible Bond (USD) Fund

To seek long-term capital appreciation, measured in US dollars,through investment primarily in convertible bonds issued by companies organised or operating in either the developed or emerging markets which will be denominated in globalcurrencies.

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Electronic Equipment ManufacturersSanmina-SCI unsecur subord debentures CV 0% /2020 2,640,000 1,353,000 1.34Solectron unsecur nts CV 0% /2020 2,260,000 1,293,850 1.28


IT Consulting & Other ServicesGetronics unsubord CV 5.5% /2008 (EUR) 1,070,000 1,618,610 1.60Cap Gemini unsubord CV 2.5% /2010 (EUR) 1,363,000 947,586 0.94


Multi-line InsuranceLoews unsecur subord nts CV 3.125% /2007 1,290,000 1,241,625 1.23AXA subord CV 3.75% /2017 (EUR) 347,600 874,091 0.87


Communications EquipmentAmerican Tower nts CV 5% /2010 930,000 890,475 0.88CIENA sr nts unsecur CV 3.75% /2008 960,000 882,000 0.87Juniper Networks unsecur subord nts CV 4.75% /2007 280,000 287,000 0.29


Real Estate Management & DevelopmentGecina CV 3.25% /2006 (EUR) 810,000 1,090,622 1.08HLP International Treasury co gtd CV 3.4% /2007 (HKD) 6,150,000 910,027 0.90


Apparel Accessories & Luxury GoodsAdidas-Salomon co gtd CV 2.5% /2018 (1) (EUR) 1,350,000 1,889,009 1.87


Airport ServicesBAA CV 2.94% /2008 (GBP) 560,000 943,766 0.94BAA SerBAA CV 2.625% /2009 (GBP) 530,000 942,136 0.93

Total for Airport Services 1.87

RestaurantsBrinker International unsecur sr debentures CV 0% /2021 2,730,000 1,849,575 1.83


AdvertisingWPP Group unsecur sr CV 2% /2007 (GBP) 1,070,000 1,848,549 1.83

Total for Advertising 1.83

Publishing & PrintingVNU unsubord SerRegS CV 1.75% /2006 (EUR) 1,510,000 1,847,353 1.83


ReinsuranceSwiss Re American Holding unsecur subord co gtd SerRegS CV 3.25% /2021 (1) 1,910,000 1,805,535 1.79


Marketvalue

% of netassets



Health Care EquipmentMedtronic unsecur debentures CV 1.25% /2021 1,750,000 1,804,687 1.79


Construction MaterialsHolcim Capital co gtd CV 0% /2017 2,820,000 1,787,316 1.77

Total for Construction Materials 1.77

Application SoftwareComputer Associates International unsecur sr nts CV 5% /2007 740,000 966,625 0.96Mercury Interactive unsecur nts CV 4.75% /2007 790,000 787,037 0.78


Food RetailKoninklijke Ahold subord CV 4% /2005 (EUR) 1,350,000 1,672,028 1.66


Packaged Foods & MeatsNestlé Holdings unsecur unsubord sr nts CV 0% /2008 1,690,000 1,652,820 1.64


Gas UtilitiesEl Paso unsecur debentures CV 0% /2021 2,010,000 934,650 0.93Panva Gas Holdings CV 2% /2008 600,000 693,000 0.68


Wireless Telecommunication ServicesNII Holdings sr nts Ser144A priv plmt CV 3.5% /2033 1,200,000 1,438,500 1.43


Diversified Capital Markets3i Group sr nts SerIII CV 1.375% /2008 (EUR) 1,130,000 1,406,672 1.39


Electrical Components & EquipmentSPX unsecur sr nts CV 0% /2021 1,330,000 911,050 0.90General Cable new money CV 5.75% /2013 2,800 164,850 0.17


Consumer ElectronicsSony CV 0% /2008 (JPY) 110,000,000 1,057,247 1.05


Drug RetailDuane Reade unsecur sr co gtd step cpn 2.1478% /2022 (1) 1,700,000 973,250 0.96


Agricultural ProductsSuedzucker International Finance CV 3% /2008 (EUR) 770,000 969,691 0.96


Marketvalue

% of netassets







BiotechnologyAmgen unsecur sr nts CV 0% /2032 1,250,000 948,437 0.94


Auto Parts & EquipmentValeo unsubord SerFR CV 2.375% /2011 (EUR) 1,578,000 917,630 0.91


Multi-Sector HoldingsOesterreichische Industrieholding unsecur unsubord SerTKA CV 1.125% /2006 (EUR) 600,000 761,655 0.75

Total for Multi-Sector Holdings 0.75

Property & Casualty InsuranceTravelers Property Casualty unsecur subord nts Pfd stock CV 4.5% /2032 19,745 477,829 0.47Chubb Pfd Stock 7% /2006 7,400 212,750 0.21


SemiconductorsPMC - Sierra unsecur subord nts CV 3.75% /2006 660,000 660,792 0.65


Life & Health InsuranceConseco CV PIK 10.5% to 02/09/2004 / 11% to 31/12/2049 24,000 625,200 0.62


Broadcasting & Cable TVLiberty Media unsecur sr debentures CV 0.75% /2023 385,000 454,300 0.45


Integrated Oil & GasAmerada Hess Pfd Stock 7% /2006 6,760 374,707 0.37


Diversified Metals & MiningInco unsecur nts CV 0% /2021 310,000 337,125 0.33


Office Services & SuppliesBuhrmann co gtd CV 2% /2010 (EUR) 240,000 312,679 0.31


Automobile ManufacturersBMW Finance co gtd sr CV 1.875% /2008 (EUR) 200,000 249,851 0.25


Oil & Gas DrillingNabors Industries unsecur sr co gtd Ser144A priv plmt CV 0% /2023 100,000 92,375 0.09

Total for Oil & Gas Drilling 0.09

Marketvalue

% of netassets



TruckingYellow Roadway unsecur sr nts Ser144A priv plmt CV 3.375% /2023 50,000 56,625 0.06



Total NAV 100,933,849 100.00


Marketvalue

% of netassets





Investment aimsTo provide an attractive rate of return, measured in Euro, throughmarket and instrument selection. This objective will be achievedby investing in high quality fixed income securities denominatedin Euro. The Fund will invest primarily, in order to reduce volatility,in individual securities with maturity dates having a maximum of five years.

GermanyBundesobligation Ser138 4.5% /2006 38,000,000 39,548,500 5.71Bundesrepublik Ser95 6.5% /2005 28,000,000 29,891,400 4.31Bundesschatzanweisungen nts 2.5% /2005 29,000,000 29,082,650 4.20Kreditanstalt fuer Wiederaufbau unsecur 3.75% /2004 20,000,000 20,261,800 2.93Eurohypo secur Pfandbriefe Ser777 3.75% /2005 13,000,000 13,261,300 1.92DGZ secur pfandbriefe Ser403 5.25% /2005 12,000,000 12,467,400 1.80Depfa Pfandbriefbank secur Ser478 5% /2006 11,000,000 11,537,350 1.67Hypothekenbank in Essen secur pfandbriefe Ser398 6.5% /2005 10,000,000 10,685,500 1.54Allgemeine Hypothekenbank secur pfandbriefe Ser491 4.75% /2005 10,000,000 10,374,500 1.50Hypothekenbank in Essen secur unsubord SerRegS 4.25% /2006 10,000,000 10,287,500 1.49Bundesobligation Ser140 4.5% /2007 9,000,000 9,384,750 1.36DSL Bank unsecur unsubord 3.625% /2004 5,950,000 5,967,553 0.86


FranceFrench Treasury Note BTAN 5% /2005 69,000,000 71,656,500 10.35French Treasury Note BTAN 4.5% /2006 39,000,000 40,571,700 5.86French Treasury Note BTAN nts 3.5% /2005 29,000,000 29,379,900 4.24Dexia Municipal Agency secur collateralizedSerEMTN 5.5% /2006 15,000,000 15,865,500 2.29Aventis unsecur sr unsubord SerEMTN 5% /2006 4,925,000 5,136,775 0.74Dexia nts SerEMTN 3.625% /2004 3,725,000 3,751,261 0.54Schneider Electric 3.75% /2004 3,475,000 3,488,525 0.50Thomson CSF sr nts SerEMTN 6.125% /2005 3,150,000 3,306,303 0.49Schneider Electric unsecur sr unsubord SerEMTN 6.125% /2007 2,000,000 2,174,100 0.32


United States of AmericaCitibank Credit Card Master Trust 4.875% /2005 (DEM) 21,145,000 11,121,550 1.61MBNA America Europe Ser6 4.375% /2004 8,960,000 9,063,886 1.31Chase Credit Card Master Trust Ser1998-1 5.125% /2005 8,286,000 8,517,378 1.23General Motors Acceptance Swift Trust 1999-1Ser144A priv plmt 5% /2005 6,000,000 6,165,606 0.89Freddie Mac unsecur sr nts SerINTL 4.625% /2007 5,000,000 5,203,750 0.75General Motors Acceptance unsecur unsubordSerEMTN 6% /2008 4,600,000 4,836,210 0.70General Electric Capital unsecur sr unsubordSerEMTN 5.125% /2007 3,570,000 3,769,920 0.54Procter & Gamble unsecur sr unsubord 5.75% /2005 3,425,000 3,598,305 0.52Lehman Brothers Holdings sr nts SerEMTN 5.625% /2006 3,325,000 3,500,892 0.51New York Life Funding secured sr nts SerEMTN 5.125% /2006 2,950,000 3,077,293 0.44Household Finance unsecur unsubord 5.25% /2005 2,875,000 2,996,325 0.43Citigroup unsecur unsubord SerINTL 4.625% /2007 2,100,000 2,179,695 0.31Countrywide Home Loans co gtd SerEMTN 2.75% /2006 2,150,000 2,088,725 0.30

0.0

0.6

1.2

1.8

2.4

3.0

3.6

2.52%2.95% 1.45% 3.27%

I

A

B

I A B

Marketvalue

% of netassets


specifiedInvestment





Short Maturity Euro Bond Fund




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


United States of America (continued)Ford Motor Credit sr nts SerEMTN 5.75% /2009 2,000,000 2,044,000 0.30Goldman Sachs Group nts SerEMTN 2.589% /2006 (1) 2,000,000 2,012,952 0.29Goldman Sachs Group sr nts 4.125% /2008 1,500,000 1,524,975 0.23Bank of America sr unsecur unsubord 3.625% /2008 1,500,000 1,497,975 0.22Ford Motor Credit sr nts SerEMTN 6.75% /2008 1,000,000 1,064,450 0.15


NetherlandsGovernment of Netherlands 4% /2005 40,000,000 40,928,000 5.91SNS Reaal Groep unsecur sr unsubord SerEMTN 5% /2004 3,800,000 3,839,330 0.55Unilever unsecur unsubord co gtd SerEMTN 4.75% /2004 3,700,000 3,739,341 0.54RWE Finance unsecur sr unsubord co gtd SerEMTN 5.5% /2007 3,400,000 3,628,480 0.52Allianz Finance II sr unsecur unsubord co gtd 4.625% /2007 3,125,000 3,252,813 0.47Fixed-Link Finance secur SerG2-X 5.75% /2009 (1) 3,000,000 3,131,850 0.45DaimlerChrysler International Finance sr unsecurunsubord co gtd SerEMTN 6.125% /2006 2,500,000 2,642,875 0.38Cooper Industries Finance unsecur sr unsubord co gtd 6.25% /2005 2,150,000 2,257,248 0.33Aegon unsecur sr unsubord SerEMTN 4.625% /2008 2,000,000 2,061,300 0.30Honeywell Holding sr unsubord unsecur co gtd 5.25% /2006 1,925,000 1,998,970 0.29E.On International Finance co gtd SerEMTN 5.75% /2009 1,500,000 1,627,425 0.24Volkswagen International Finance unsecur sr unsubord co gtd SerEMTN 4.125% /2009 1,500,000 1,500,750 0.22EADS Finance unsecur sr unsubord co gtd SerEMTN 4.625% /2010 1,300,000 1,318,745 0.19


United KingdomBritish Telecom step cpn 6.375% to 15/02/2006 5,000,000 5,315,376 0.76Bank of Scotland Treasury Service bnk gtd SerMTN1 2.154% /2004 (1) 4,500,000 4,499,788 0.65John Hancock Global Fund secur SerEMTN 3.875% /2006 4,175,000 4,230,319 0.61OTE unsecur unsubord co gtd SerRegS 6.125% /2007 3,150,000 3,374,280 0.49TI Group unsecur unsubord 6.375% /2005 3,055,000 3,191,053 0.46NGG Finance sr unsecur unsubord co gtd 5.25% /2006 2,900,000 3,037,895 0.44WPP Group unsecur unsubord 5.125% /2004 2,850,000 2,885,910 0.42BAT International Finance sr unsecur unsubord co gtd SerEMTN 4.25% /2004 2,675,000 2,685,434 0.39Vodafone Group unsecur nts SerEMTN 5.75% /2006 2,130,000 2,270,958 0.33Travelers Insurance Company Institutional Funding sr secur SerEMTN 4.25% /2006 1,500,000 1,531,950 0.22


SpainGovernment of Spain 4.95% /2005 24,000,000 24,914,400 3.60Banco Santander Central Hispano secur 2.75% /2006 7,600,000 7,581,000 1.09


Marketvalue

% of netassets


specifiedInvestment


ItalyRepublic of Italy 4.75% /2006 28,000,000 29,190,000 4.22


BelgiumKingdom of Belgium 4.75% /2005 19,000,000 19,708,700 2.85SCA Coordination Center unsecur unsubord co gtd SerEMTN 5.375% /2007 1,000,000 1,058,528 0.15


PortugalPortugal Obrigacoes do Tesouro nts 3% /2006 13,000,000 13,033,150 1.88

Total for Portugal 1.88

AustraliaBOS International Australia unsecur sr unsubord bnk gtd SerEMTN 3.75% /2008 5,000,000 4,990,836 0.72


LuxembourgSyngenta Luxembourg Finance (#2) unsecurunsubord co gtd 5.5% /2006 4,500,000 4,740,656 0.68


SwedenAssa Abloy nts SerEMTN 5.125% /2006 1,600,000 1,674,894 0.24



Total NAV 692,302,357 100.00


Marketvalue

% of netassets


specifiedInvestment

Short Maturity Euro Bond Fund

Investment aimsTo provide an attractive rate of return, measured in US dollars,through investment primarily in US dollar denominated fixedincome securities issued by governments, agencies andcorporations either in the US domestic markets or in theEuromarkets. The Fund may also invest on an ancillary basis inforeign fixed income securities, including emerging marketsfixed income securities.

Mortgage and Asset Backed SecuritiesUnited States of AmericaFNMA TBA 6.5% /2034 54,250,000 56,708,176 16.32FNMA TBA 6% /2034 24,000,000 24,783,750 7.13FNMA TBA 5.5% /2034 18,300,000 18,517,312 5.32FNMA TBA 7% 01/2034 14,450,000 15,294,429 4.39FNMA Pool TBA 5.5% /2019 10,000,000 10,353,120 2.97FNMA TBA 4.5% /2019 7,950,000 7,947,520 2.29FNMA TBA 5% /2019 7,500,000 7,642,965 2.20FNMA Pool 616766 7% /2031 4,751,283 5,028,936 1.45Freddie Mac Gold TBA 5% /2019 4,150,000 4,220,680 1.22FNMA Pool 545605 7% /2032 3,971,847 4,203,952 1.21Freddie Mac Gold TBA 6% /2034 4,000,000 4,114,375 1.18FNMA Pool 254487 7.5% /2032 2,555,123 2,729,191 0.79Freddie Mac Gold Pool C43084 7.5% /2030 2,295,350 2,455,307 0.71FNMA Pool 629080 7% /2032 2,135,638 2,260,440 0.65Freddie Mac Gold Pool C69834 6.5% /2032 1,813,370 1,898,655 0.55Freddie Mac Gold Pool C69872 6.5% /2032 1,789,234 1,873,384 0.54Freddie Mac Gold Pool C46127 6.5% /2030 1,712,804 1,793,360 0.52Freddie Mac Gold Pool C43659 6.5% /2029 1,652,575 1,730,298 0.50MBNA Master Credit Card Trust 2000-E A 7.8% /2012 1,430,000 1,720,022 0.50Freddie Mac Gold Pool C46901 6.5% /2029 1,634,208 1,711,067 0.49Freddie Mac Gold Pool C53088 6.5% /2031 1,613,276 1,689,150 0.49FNMA Pool 607155 7.5% /2031 1,559,167 1,665,385 0.48Chase Credit Card Master Trust 2001-4 A 5.5% /2008 1,490,000 1,597,094 0.46FNMA Pool 535148 8% /2030 1,289,317 1,389,642 0.40Fannie Mae FNR 2003-33 IA unsecur 6.5% /2033 6,134,903 1,007,090 0.29FNMA Pool 649202 7% /2032 899,079 951,619 0.27Freddie Mac Gold Pool C39936 7.5% /2030 821,334 878,571 0.25Freddie Mac Gold Pool D95307 7.5% /2021 784,368 843,589 0.24FNMA Pool 595547 7% /2031 714,967 756,748 0.22MBNA Master Credit Card Trust 2000-I A 6.9% /2008 700,000 755,683 0.22Freddie Mac Gold Pool C01086 7.5% /2030 676,255 723,382 0.21FNMA Pool 253585 8% /2031 654,037 704,929 0.20Freddie Mac Gold Pool A10594 7.5% /2027 649,441 694,699 0.20Fannie Mae FNR 2003-25 IK 7% /2033 4,210,262 664,017 0.19FNMA Pool 639650 7% /2032 611,973 647,735 0.19FNMA Pool 66127 8% /2032 596,732 643,165 0.19Freddie Mac Gold Pool C59760 7.5% /2027 601,167 643,061 0.19FNMA Pool 535127 8% /2030 587,695 633,424 0.18Fannie Mae FNR 2003-58 IM 6% /2033 3,303,122 629,483 0.18FNMA Pool 655939 7% /2032 593,179 627,843 0.18FNMA Pool 622547 7% /2031 584,417 618,569 0.18FNMA Pool 650144 7% /2032 575,733 609,377 0.18FNMA Pool 644578 7% /2032 565,668 598,724 0.17Freddie Mac Gold Pool C75021 6.5% /2032 558,337 584,597 0.17Citibank Credit Card Issuance Trust 2000-C1 C1 7.45% /2007 535,000 579,180 0.17Freddie Mac Gold Pool C24961 6.5% /2029 548,822 574,634 0.17FNMA Pool 648063 7% /2032 538,297 569,754 0.16FNMA Pool 655062 7.5% /2032 527,827 563,786 0.16FNMA Pool 602073 7.5% /2031 518,397 553,712 0.16FNMA Pool 535996 7.5% /2031 516,634 551,829 0.16Freddie Mac Gold Pool G01392 7.5% /2032 499,922 534,760 0.15FNMA Pool 323991 7.5% /2029 470,010 502,029 0.14FNMA Pool 253813 8% /2031 456,791 492,334 0.14FNMA Pool 535190 8% /2030 449,413 484,382 0.14Freddie Mac Gold Pool G01031 7.5% /2029 441,701 472,482 0.14FNMA Pool 570642 8% /2031 437,806 471,872 0.14Freddie Mac Gold Pool A12010 7.5% /2030 436,957 467,408 0.13Freddie Mac Gold Pool C66709 7.5% /2032 423,878 453,417 0.13Freddie Mac Gold Pool C57125 7.5% /2031 401,774 429,772 0.12Freddie Mac Gold Pool C47598 7.5% /2029 392,550 419,906 0.12Freddie Mac Gold Pool C71099 6.5% /2032 393,691 412,207 0.12

0

1

2

3

4

5

2.94%3.34% 1.86% 4.10%

I

A

B

I A B

Marketvalue

% of netassets







US Bond Fund




Lehman Brothers Aggregate Index (expressed in US dollars)


Mortgage and Asset Backed Securities (continued)United States of America (continued)FNMA Pool 651217 7% /2032 379,912 402,113 0.12Fannie Mae FNS 313-2 6.5% /2031 2,279,860 395,969 0.11FNMA Pool 628751 7.5% /2032 370,130 395,345 0.11FNMA Pool 592229 7.5% /2031 369,498 394,670 0.11Fannie Mae Strip 317 IO 8% /2031 2,152,161 372,384 0.11FNMA Pool 672440 8% /2032 343,294 370,006 0.11Freddie Mac Gold Pool C44335 7.5% /2030 336,338 359,777 0.10Freddie Mac Gold Pool C77120 6.5% /2033 334,550 350,285 0.10FNMA Pool 254312 7% /2032 327,098 346,212 0.10FNMA Pool 590049 7% /2031 318,472 337,083 0.10Freddie Mac Gold Pool C70885 6.5% /2032 319,773 334,812 0.10FNMA Pool 630529 7.5% /2032 302,904 323,539 0.09FNMA Pool 620424 7.5% /2032 302,620 323,236 0.09Freddie Mac Gold Pool C38972 6.5% /2029 300,507 314,641 0.09Freddie Mac Gold Pool C43014 7.5% /2030 279,897 299,403 0.09FNMA Pool 596192 7.5% /2031 278,497 297,470 0.09Freddie Mac Gold Pool D78850 7.5% /2027 265,888 284,417 0.08Freddie Mac Gold Pool C41688 7.5% /2030 260,746 278,917 0.08Freddie Mac Gold Pool C01701 6.5% /2033 257,373 269,478 0.08Freddie Mac Gold Pool C41497 7.5% /2030 246,632 263,819 0.08FNMA Pool 655588 8% /2032 238,253 256,792 0.07Freddie Mac Gold Pool C39840 7.5% /2030 237,407 253,952 0.07FNMA Pool 671440 8% /2032 227,801 245,527 0.07Freddie Mac Gold Pool C39839 7.5% /2030 229,138 245,106 0.07FNMA Pool 573254 7.5% /2031 229,311 244,933 0.07FNMA Pool 566789 7.5% /2031 228,448 244,010 0.07FNMA Pool 521221 7.5% /2029 221,761 236,868 0.07FNMA Pool 190308 7.5% /2030 216,441 231,186 0.07Freddie Mac Gold Pool C53765 7.5% /2031 212,452 227,257 0.07FNMA Pool 253114 8% /2030 209,629 225,940 0.07Fannie Mae FNR 2001-4 SA 6.4% /2031 (1) 2,289,935 220,692 0.06FNMA Pool 545395 8% /2031 204,666 220,592 0.06Freddie Mac Gold Pool C47090 7.5% /2031 204,967 219,251 0.06FNMA Pool 254240 7% /2032 198,926 210,550 0.06FNMA Pool 254383 7.5% /2032 195,492 208,810 0.06Freddie Mac Gold Pool C47063 7.5% /2031 188,972 202,141 0.06Freddie Mac Gold Pool C90299 7.5% /2019 187,527 201,574 0.06FNMA Pool 524488 7.5% /2030 184,229 196,779 0.06FNMA Pool 541903 7.5% /2030 183,317 195,805 0.06Freddie Mac Gold Pool C36249 7.5% /2030 181,523 194,173 0.06CVS pass thru certs Ser144A priv plmt 6.204% /2025 179,327 192,128 0.06FNMA Pool 535898 8% /2031 176,862 190,624 0.05FNMA Pool 557184 8% /2030 162,610 175,263 0.05FNMA Pool 605329 7.5% /2031 162,066 173,106 0.05Freddie Mac Gold Pool C47928 7.5% /2031 156,086 166,963 0.05FNMA Pool 615166 7.5% /2031 155,848 166,465 0.05Freddie Mac Gold Pool C80401 7.5% /2026 152,092 162,690 0.05Freddie Mac Gold Pool C56140 7.5% /2031 148,716 159,080 0.05FNMA Pool 647511 7% /2032 150,249 159,029 0.05FNMA Pool 535204 8% /2030 147,330 158,794 0.05Freddie Mac FHR 2500 SD 6.84% /2032 (1) 1,777,129 155,697 0.04Freddie Mac Gold Pool C39195 7.5% /2030 145,238 155,359 0.04Freddie Mac Gold Pool G00876 6.5% /2028 144,504 151,300 0.04Freddie Mac Gold Pool G01167 7.5% /2031 140,796 150,607 0.04FNMA Pool 190292 7.5% /2027 140,371 149,934 0.04FNMA Pool 545003 8% /2031 138,567 149,349 0.04FNMA Pool 531578 7.5% /2030 134,509 143,672 0.04Freddie Mac Gold Pool C01214 7.5% /2031 133,702 143,020 0.04FNMA Pool 559287 7.5% /2030 133,564 142,663 0.04FNMA Pool 568354 8% /2031 129,704 139,797 0.04Fannie Mae FNR 2002-50 SC 6.959% /2029 (1) 2,191,910 138,913 0.04FNMA Pool 545078 7.5% /2031 125,966 134,548 0.04FNMA Pool 637716 7.5% /2032 125,900 134,477 0.04Freddie Mac Gold Pool C68730 7.5% /2026 123,135 131,716 0.04

Marketvalue

% of netassets




Mortgage and Asset Backed Securities (continued)United States of America (continued)Government National Mortgage Association GNR 1999-27 SE 7.45% /2029 (1) 1,253,147 131,028 0.04FNMA Pool 545562 7.5% /2032 121,993 130,304 0.04FNMA Pool 571075 7% /2031 120,947 128,014 0.04FNMA Pool 535757 8% /2031 115,394 124,374 0.04FNMA Pool 637406 7% /2032 115,497 122,246 0.04FNMA Pool 591854 7.5% /2031 114,049 121,819 0.04FNMA Pool 253643 7.5% /2031 111,352 118,938 0.03Freddie Mac Gold Pool C40531 7.5% /2030 109,857 117,513 0.03FNMA Pool 529097 8% /2030 104,504 112,636 0.03FNMA Pool 251626 7% /2018 105,215 111,626 0.03FNMA Pool 535481 8% /2030 102,864 110,868 0.03Freddie Mac Gold Pool C41463 7.5% /2030 103,235 110,429 0.03Government National Mortgage Association GNR 2001-22 SK 7% /2031 (1) 1,139,373 109,380 0.03FNMA Pool 576022 8% /2029 100,888 108,738 0.03Freddie Mac Gold Pool C41381 7.5% /2030 100,719 107,738 0.03FNMA Pool 566715 8% /2031 99,728 107,488 0.03FNMA Pool 339552 7% /2026 101,520 107,452 0.03FNMA Pool 663613 7% /2032 98,453 104,206 0.03FNMA Pool 514574 7.5% /2030 96,555 103,133 0.03FNMA Pool 583355 8% /2031 94,748 102,121 0.03FNMA Pool 558690 7.5% /2030 94,623 101,069 0.03FNMA Pool 526645 7.5% /2029 93,972 100,374 0.03Freddie Mac Gold Pool C45610 7.5% /2030 92,600 99,053 0.03FNMA Pool 415853 7.5% /2028 92,471 98,770 0.03FNMA Pool 582121 7% /2031 92,689 98,105 0.03FNMA Pool 678393 7% /2032 91,801 97,166 0.03FNMA Pool 630738 7% /2032 91,332 96,670 0.03FNMA Pool 580991 7.5% /2031 90,499 96,664 0.03FNMA Pool 616898 7.5% /2031 90,100 96,238 0.03FNMA Pool 622235 7% /2032 90,728 96,030 0.03FNMA Pool 253481 8% /2030 87,993 94,840 0.03FNMA Pool 541247 8% /2030 87,913 94,754 0.03FNMA Pool 545620 7.5% /2032 87,841 93,825 0.03FNMA Pool 636445 7% /2032 86,477 91,530 0.03FNMA Pool 649504 7% /2032 82,885 87,729 0.03FNMA Pool 676498 7% /2032 81,559 86,325 0.02FNMA Pool 252806 7.5% /2029 79,355 84,761 0.02FNMA Pool 529548 7.5% /2030 79,104 84,493 0.02FNMA Pool 679577 7% /2032 79,776 84,438 0.02Fannie Mae Strip 306 IO 8% /2030 460,932 83,679 0.02Freddie Mac Strip 215 IO 8% /2031 470,794 82,364 0.02Freddie Mac Gold Pool C41920 8% /2030 75,427 81,296 0.02FNMA Pool 550017 7.5% /2030 75,286 80,415 0.02FNMA Pool 545551 8% /2032 73,871 79,619 0.02FNMA Pool 661907 7% /2032 73,541 77,838 0.02FNMA Pool 253437 8% /2030 71,864 77,456 0.02FNMA Pool 644789 7% /2032 73,008 77,274 0.02Freddie Mac Gold Pool A12677 7.5% /2030 71,986 77,002 0.02FNMA Pool 554693 8% /2030 71,338 76,889 0.02FNMA Pool 252807 8% /2029 71,024 76,551 0.02FNMA Pool 532814 7.5% /2030 66,667 71,209 0.02Fannie Mae Strip FNS 320 2 7% /2032 378,197 70,936 0.02FNMA Pool 568165 7.5% /2031 65,294 69,742 0.02FNMA Pool 563934 8% /2031 61,921 66,739 0.02FNMA Pool 535533 8% /2030 61,577 66,368 0.02FNMA Pool 624309 7.5% /2032 61,539 65,731 0.02Fannie Mae Strip 1997-53 PI 8% /2027 363,318 63,708 0.02FNMA Pool 504341 7% /2029 59,960 63,464 0.02FNMA Pool 559146 7% /2030 59,201 62,660 0.02Fannie Mae Strip 2000-32 SM 7.4% /2030 (1) 736,961 61,636 0.02FNMA Pool 644342 7% /2032 58,190 61,590 0.02FNMA Pool 646944 7% /2032 55,564 58,811 0.02Fannie Mae Strip 2000-46 SA 7.41% /2030 (1) 671,575 58,699 0.02

Marketvalue

% of netassets



US Bond Fund


Mortgage and Asset Backed Securities (continued)United States of America (continued)FNMA Pool 621265 8% /2032 53,702 57,881 0.02FNMA Pool 520075 7% /2029 53,789 56,932 0.02FNMA Pool 632452 7% /2032 53,777 56,920 0.02Government National Mortgage Association Strip 1999-30 SA IO 6.846% /2029 (1) 629,912 56,111 0.02Freddie Mac Gold Pool C36886 8% /2030 52,019 56,067 0.02FNMA Pool 538501 8% /2030 51,314 55,306 0.02Freddie Mac Gold Pool C39781 8% /2030 49,721 53,590 0.02Government National Mortgage Association GNR 2001-46 SA 6.43% /2031 (1) 736,768 53,395 0.02FNMA Pool 579400 7% /2031 48,167 50,982 0.01FNMA Pool 254572 8% /2032 45,280 48,803 0.01Freddie Mac Gold Pool C42445 8% /2030 44,481 47,942 0.01FNMA Pool 654424 7% /2032 44,969 47,597 0.01Freddie Mac Gold Pool C01025 8% /2030 43,489 46,873 0.01FNMA Pool 253346 7.5% /2030 43,595 46,565 0.01Fannie Mae Strip 2000-34 S 7.409% /2030 (1) 546,383 44,133 0.01FNMA Pool 542772 8% /2030 39,491 42,563 0.01FNMA Pool 633854 8% /2032 39,421 42,489 0.01FNMA Pool 584953 7.5% /2031 38,026 40,616 0.01FNMA Pool 550230 7% /2030 36,881 39,037 0.01FNMA Pool 601136 8% /2031 36,161 38,975 0.01FNMA Pool 530188 8% /2030 35,688 38,465 0.01FNMA Pool 253516 8% /2030 34,117 36,771 0.01FNMA Pool 569342 8% /2031 33,572 36,185 0.01FNMA Pool 532807 7.5% /2030 33,295 35,563 0.01Freddie Mac Strip 2234 SC IO 7.39% /2029 (1) 483,864 35,197 0.01FNMA Pool 601971 7.5% /2031 32,675 34,900 0.01Freddie Mac Gold Pool G01135 8% /2030 31,674 34,139 0.01FNMA Pool 548831 8% /2030 31,129 33,551 0.01FNMA Pool 537867 8% /2030 30,980 33,391 0.01Fannie Mae Strip 307 IO 8% /2030 158,174 28,420 0.01FNMA Pool 259113 7.5% /2030 25,825 27,584 0.01FNMA Pool 535198 8% /2030 24,036 25,906 0.01FNMA Pool 343010 7.5% /2026 23,929 25,354 0.01FNMA Pool 591183 8% /2031 23,411 25,233 0.01FNMA Pool 571106 7.5% /2031 22,767 24,318 0.01FNMA Pool 522601 8% /2029 22,070 23,787 0.01Fannie Mae Strip 2000-31 SB IO 6.859% /2027 (1) 469,674 22,673 0.01FNMA Pool 594355 7.5% /2031 20,904 22,328 0.01FNMA Pool 547424 8% /2030 20,495 22,090 0.01FNMA Pool 568963 7.5% /2031 20,038 21,403 0.01FNMA Pool 563584 8% /2030 19,851 21,395 0.01Fannie Mae Strip 296 2 8% /2024 106,922 20,984 0.01Freddie Mac Gold Pool C01221 8% /2031 18,843 20,309 0.01FNMA Pool 614467 8% /2031 18,302 19,726 0.01FNMA Pool 571788 7.5% /2031 16,755 17,896 0.01FNMA Pool 566917 7.5% /2031 16,475 17,597 0.01FNMA Pool 541938 8% /2030 15,180 16,361 0.00FNMA Pool 564495 8% /2031 15,037 16,207 0.00FNMA Pool 190317 8% /2031 13,651 14,714 0.00Government National Mortgage Association GNR 1999-38 SM IO 7.25% /2026 (1) 288,035 14,046 0.00FNMA Pool 655106 7.5% /2032 12,897 13,775 0.00FNMA Pool 581649 8% /2031 9,569 10,314 0.00FNMA Pool 637459 7.5% /2032 6,987 7,463 0.00FNMA Pool 600298 7.5% /2031 6,528 6,972 0.00FNMA Pool 634589 8% /2031 6,361 6,856 0.00FNMA Pool 515611 7.5% /2029 5,190 5,543 0.00FNMA Pool 592703 8% /2031 4,918 5,301 0.00FNMA Pool 511789 7.5% /2030 2,080 2,222 0.00FNMA Pool 549123 7.5% /2030 1,317 1,407 0.00



Marketvalue

% of netassets




Corporate BondsUnited States of AmericaPrudential Holdings SerFSA B priv plmt 7.245% /2023 2,190,000 2,471,945 0.71Ford Motor Credit nts 7.25% /2011 1,365,000 1,476,101 0.43Verizon Global Funding unsecur sr unsubord nts 7.75% /2030 1,195,000 1,399,721 0.40Prudential Holdings 'C' Ser144A priv plmt 8.695% /2023 1,025,000 1,266,706 0.36Ford Motor 6.625% /2028 1,320,000 1,209,666 0.35General Motors Acceptance nts 6.875% /2011 1,110,000 1,191,658 0.34World Financial Properties pass thru certs Ser144A priv plmt 6.95% /2013 1,056,269 1,169,894 0.34Fleetboston Financial nts 7.25% /2005 1,005,000 1,092,052 0.31General Electric Capital nts SerMTNA 6.75% /2032 970,000 1,078,072 0.31Aetna 'New' sr nts unsecur 7.875% /2011 900,000 1,059,005 0.30America West Airlines pass thru certs Ser01-1 7.1% /2021 927,998 983,274 0.29J.P. Morgan Chase & Co unsecur subord nts 6% /2009 900,000 982,141 0.29General Motors Acceptance 8% /2031 865,000 962,244 0.29Marriott International unsecur nts SerE 7% /2008 (1) 845,000 941,282 0.27Bank One subord nts SerMTNA 6% /2009 845,000 924,135 0.27EOP Operating LP unsecur sr nts 6.763% /2007 835,000 919,482 0.26Comcast sr unsecur co gtd 6.5% /2015 845,000 918,310 0.26Countrywide Home Loans nts SerMTNL 3.25% /2008 925,000 909,595 0.26Nationwide Mutual Insurance nts Ser144A priv plmt 8.25% /2031 725,000 869,669 0.25World Financial Properties pass thru certs Ser144A priv plmt 6.91% /2013 762,419 842,924 0.24Hartford Life unsecur debentures 7.65% /2027 705,000 841,357 0.24Farmers Exchange Capital nts Ser144A priv plmt 7.05% /2028 880,000 816,790 0.24Conoco unsecur sr nts 6.95% /2029 700,000 795,883 0.23May Department Stores co gtd 7.45% /2016 660,000 757,302 0.22Weyerhaeuser unsecur nts 6.75% /2012 680,000 741,647 0.21Axa Financial unsecur sr nts 6.5% /2008 670,000 735,160 0.21MBNA nts 6.125% /2013 655,000 702,834 0.20American General nts 7.5% /2025 570,000 679,111 0.20Wachovia nts 4.95% /2006 640,000 678,360 0.20Nationwide Mutual Insurance nts Ser144A priv plmt 7.5% /2024 655,000 673,183 0.19Continental Airlines pass thru certs Ser981A 6.648% /2017 671,799 655,889 0.19Hyatt Equities nts Ser144A priv plmt 6.875% /2007 595,000 639,118 0.18Citigroup unsecur subord nts 5.625% /2012 585,000 618,113 0.18Citicorp subord nts 6.75% /2005 565,000 607,325 0.17AT&T Wireless Services sr nts unsecur 8.75% /2031 500,000 606,481 0.17Carolina Power & Light 1st mortgage 5.125% /2013 580,000 586,806 0.17DaimlerChrysler NA Holding co gtd 7.3% /2012 505,000 564,061 0.16Waste Management sr unsecur co gtd 6.875% /2009 500,000 563,024 0.16DaimlerChrysler NA Holding co gtd 7.2% /2009 500,000 557,538 0.16Consolidated Natural Gas Company sr nts unsecur unsubord SerC 6.25% /2011 500,000 548,948 0.16Altria Group unsecur debentures 7.75% /2027 500,000 538,673 0.16Amerada Hess 7.875% /2029 485,000 532,716 0.15SLM nts SerMTNA 5% /2013 525,000 521,444 0.15Prime Property Funding II nts Ser144A priv plmt 7% /2004 505,000 520,965 0.15

Marketvalue

% of netassets



US Bond Fund


Corporate Bonds (continued)United States of America (continued)Honeywell International 6.125% /2011 475,000 520,710 0.15Goldman Sachs Group nts 5.25% /2013 510,000 515,010 0.15Goldman Sachs Group unsecur sr nts 6.6% /2012 460,000 514,077 0.15AT&T unsecur sr nts 8.5% /2031 445,000 513,507 0.15TCI Communications unsecur sr debentures 7.875% /2026 440,000 508,010 0.15Cooper Industries unsecur co gtd 5.25% /2007 475,000 507,756 0.15Time Warner unsecur co gtd 7.7% /2032 430,000 501,089 0.14Duke Energy 4.5% /2010 495,000 500,510 0.14News America sr unsecur debentures 7.28% /2028 445,000 497,383 0.14International Lease Finance unsecur nts 3.75% /2007 490,000 495,616 0.14Wellpoint Health Networks sr unsecur nts 6.375% /2006 450,000 489,425 0.14Washington Mutual subord nts 8.25% /2010 410,000 485,443 0.14Boeing unsecur debentures 6.625% /2038 460,000 483,169 0.14Farmers Insurance Exchange Ser144A priv plmt 8.625% /2024 455,000 476,868 0.14Cendant unsecur sr nts 7.375% /2013 415,000 476,591 0.14Goldman Sachs Group 6.875% /2011 420,000 476,284 0.14Exelon unsecur sr nts 6.75% /2011 425,000 473,346 0.14Southwest Airlines pass thru certs 5.496% /2006 445,000 471,675 0.14News America Holdings co gtd sr debentures 7.75% /2024 390,000 457,924 0.13Federated Department Stores unsecur sr nts 6.625% /2008 405,000 451,929 0.13Household Finance unsecur sr unsubord 6.4% /2008 405,000 448,412 0.13Centex unsecur sr nts 7.875% /2011 370,000 434,088 0.13Weyerhaeuser unsecur unsubord nts 6% /2006 405,000 433,472 0.12American General Finance nts SerMTNH 4.625% /2010 425,000 432,773 0.12Electronic Data Systems unsecur sr nts SerB 6% /2013 440,000 429,984 0.12Pulte Homes unsecur sr nts 6.375% /2033 430,000 421,157 0.12Public Service Electric & Gas SerMTNB 5% /2013 410,000 412,729 0.12General Motors Acceptance nts 4.5% /2006 400,000 410,941 0.12Columbus Southern Power unsecur sr nts SerD 6.6% /2033 375,000 402,693 0.12MeadWestvaco unsecur co gtd 6.85% /2012 360,000 395,606 0.11Clear Channel Communications unsecur sr nts 7.65% /2010 335,000 391,885 0.11Household Finance unsecur sr unsubord 5.875% /2009 360,000 390,615 0.11Constellation Energy Group unsecur nts 7.60% /2032 330,000 386,721 0.11Kraft Foods nts 6.25% /2012 355,000 385,948 0.11Sealed Air nts Ser144A priv plmt 5.625% /2013 375,000 383,281 0.11Union Pacific nts 3.625% /2010 390,000 373,942 0.11Marathon Oil sr unsecur nts 6.8% /2032 345,000 371,506 0.11Lowe's Companies sr unsecur debentures 6.875% /2028 325,000 367,052 0.11CIT Group sr nts 2.875% /2006 365,000 364,979 0.11Raytheon sr unsecur nts 8.3% /2010 305,000 364,216 0.10Albertson's unsecur sr nts 7.5% /2011 315,000 359,963 0.10Vornado Realty Trust unsecur sr nts 5.625% /2007 335,000 354,625 0.10International Paper nts 4.25% /2009 340,000 341,248 0.10Citicorp subord nts SerMTNF 6.375% /2008 305,000 339,502 0.10Simon Property Group nts 6.375% /2007 300,000 327,354 0.09Goodrich sr unsecur nts 7.625% /2012 280,000 326,894 0.09Household Finance nts 6.75% /2011 285,000 321,002 0.09Kerr-McGee unsecur co gtd 7.875% /2031 280,000 319,410 0.09DaimlerChrysler NA co gtd 8.5% /2031 265,000 315,063 0.09Cigna unsecur sr nts 6.375% /2011 285,000 306,847 0.09

Marketvalue

% of netassets




Corporate Bonds (continued)United States of America (continued)Continental Airlines pass thru certs Ser974A 6.9% /2018 303,366 299,290 0.09TXU Energy sr nts 7% /2013 270,000 298,694 0.09General Electric Capital sr nts SerMTNA 4.25% /2010 300,000 298,568 0.09Kerr-McGee unsecur co gtd 6.875% /2011 265,000 293,412 0.08Citigroup nts 5.75% /2006 265,000 284,355 0.08MBNA America Bank subord nts 7.125% /2012 250,000 283,225 0.08ICI Wilmington co gtd 4.375% /2008 280,000 279,533 0.08Mohawk Industries unsecur nts SerD 7.2% /2012 235,000 267,026 0.08Electronic Data Systems unsecur nts 7.125% /2009 235,000 251,347 0.07Household Finance nts 6.375% /2011 225,000 248,301 0.07Schering-Plough nts 5.3% /2013 240,000 243,654 0.07May Department Stores nts 6.9% /2032 220,000 237,402 0.07Appalachian Power SerH 5.95% /2033 235,000 226,847 0.07Cincinnati Gas & Electric unsecur sr debentures SerA 5.4% /2033 250,000 221,494 0.06Amerada Hess unsecur nts 6.65% /2011 205,000 221,027 0.06Bank of New York unsecur sr nts 5.2% /2007 200,000 213,490 0.06Boeing Capital sr nts 5.75% /2007 195,000 209,715 0.06Entergy Gulf States 1st mortgage Ser144A priv plmt 3.6% /2008 210,000 205,230 0.06South Carolina Electric & Gas 5.3% /2033 210,000 194,938 0.06Cincinnati Gas & Electric nts unsecur 5.7% /2012 185,000 194,639 0.06Lockheed Martin unsecur debentures co gtd 7.75% /2026 160,000 191,812 0.06Household Finance nts 4.125% /2008 190,000 191,656 0.06Kroger sr unsecur co gtd 7.5% /2031 165,000 189,771 0.05Detroit Edison sr 6.125% /2010 150,000 164,783 0.05Altria Group nts 7% /2013 155,000 164,640 0.05Lockheed Martin 8.5% /2029 125,000 163,845 0.05Cincinnati Gas & Electric unsecur sr debentures SerB 5.375% /2033 175,000 155,275 0.04Wisconsin Energy unsecur sr 6.2% /2033 155,000 154,265 0.04Anthem Insurance nts Ser144A priv plmt 9.125% /2010 120,000 150,820 0.04Kerr-McGee unsecur co gtd 5.875% /2006 140,000 149,266 0.04Citigroup nts sr unsecur 6% /2012 135,000 147,551 0.04Ohio Power unsecur sr nts SerG 6.6% /2033 130,000 139,792 0.04Washington Mutual Bank subord nts 5.50% /2013 135,000 139,649 0.04Comcast Cable Communications unsecur sr nts 6.75% /2011 125,000 139,235 0.04Detroit Edison secur sr nts 6.35% /2032 130,000 138,803 0.04Texas Eastern Transmission unsecur sr nts 7% /2032 125,000 137,878 0.04Boeing Capital nts 6.5% /2012 120,000 131,698 0.04Kraft Foods nts 5.625% /2011 125,000 131,083 0.04Simon Property Group unsecur nts 6.35% /2012 120,000 130,445 0.04Wisconsin Electric Power nts 5.625% /2033 130,000 126,317 0.04May Department Stores co gtd 7.875% /2030 100,000 119,807 0.03Rouse nts 5.375% /2013 110,000 109,026 0.03Hartford Financial Services Group nts 2.375% /2006 95,000 94,208 0.03Federated Department Stores unsecur debentures 7% /2028 70,000 76,628 0.02Boeing Capital unsecur sr nts 6.1% /2011 50,000 53,859 0.02


CanadaInco 7.2% /2032 495,000 542,143 0.15Nexen unsecur nts 5.05% /2013 400,000 394,302 0.11Inco nts 7.75% /2012 290,000 340,629 0.10Petro-Canada 5.35% /2033 260,000 233,189 0.07Petro-Canada nts 4% /2013 150,000 138,049 0.04


Marketvalue

% of netassets



US Bond Fund


Corporate Bonds (continued)United KingdomSystems 2001 Asset Trust pass thru certs Ser144A priv plmt 6.664% /2013 1,079,770 1,192,676 0.34


MexicoPemex Project Funding Master Trust unsecur co gtd 9.125% /2010 550,000 655,875 0.19Pemex Project Funding Master Trust unsecur co gtd 8.625% /2022 485,000 536,248 0.15


AustraliaMantis Reef nts Ser144A priv plmt 4.692% /2008 785,000 789,055 0.23BHP Finance USA nts 4.8% /2013 400,000 401,387 0.11


South AfricaSappi Papier Holding co gtd Ser144A priv plmt 6.75% /2012 460,000 506,604 0.15Miller Brewing nts Ser144A priv plmt 4.25% /2008 570,000 577,576 0.17


NetherlandsDeutsche Telekom International Finance unsecur unsubord co gtd 8.75% /2030 600,000 765,180 0.22


Hong KongHutchison Whampoa International co gtd nts Ser144A priv plmt 6.5% /2013 425,000 441,273 0.13Hutchison Whampoa International sr nts Ser144A priv plmt 5.45% /2010 245,000 248,175 0.07


QatarRas Laffan Liquified Natural Gas secur Ser144A priv plmt 8.294% /2014 400,000 470,000 0.14

Total for Qatar 0.14

ItalyTelecom Italia Capital co gtd Ser144A priv plmt 4% /2008 390,000 392,237 0.11



Government Guaranteed BondsUnited States of AmericaFreddie Mac unsecur nts 5.125% /2013 3,550,000 3,541,302 1.02


Total for Government Guaranteed Bonds 1.02

Marketvalue

% of netassets




Government BondsMexicoUnited Mexican States SerMTN 8.3% /2031 895,000 1,007,591 0.29United Mexican States nts SerMTNA 8% /2022 895,000 980,651 0.28


United States of AmericaUS Treasury Bill 0% 25/03/2004 (2) 830,000 825,804 0.24US Treasury Bill 0% 15/01/2004 (2) 100,000 99,527 0.03




Total NAV 347,242,863 100.00

(1) Variable coupon rates are those quoted as of 31 December 2003.(2) Security held as collateral against currency and bond futures positions by the broker.

Marketvalue

% of netassets



US Bond Fund


US Dollar Short Duration Fund*

Investment aims

Marketvalue

% of netassets





To seek to maximise yield and total return primarily by investingin high quality US dollar denominated fixed income securitiesissued by governments, agencies and corporations. The Fundwill be managed to maintain a duration of up to 12 months at alltimes. The Fund may also hold up to 49% of its net assets incash and cash equivalents.

Mortgage and Asset Backed SecuritiesUnited States of AmericaFNMA TBA 6.5% /2034 40,200,000 42,021,542 27.99FNMA TBA 7.5% /2034 6,000,000 6,408,750 4.27FNMA TBA 7% /2034 3,000,000 3,175,314 2.12American Express Credit Account Master Trust 2003-4 A 1.69% /2009 2,505,841 2,459,972 1.64Freddie Mac Gold Pool C01500 6.5% /2033 1,975,890 2,068,818 1.38Volkswagen Auto Lease Trust 2002-A A3 2.36% /2005 1,935,000 1,949,154 1.30Citibank Credit Card Issuance Trust 2000-A1 A1 6.9% /2007 1,785,000 1,935,052 1.29BMW Vehicle Owner Trust 2002-A A4 4.46% /2007 1,850,000 1,912,324 1.27Whole Auto Loan Trust 2003-1 A4 2.58% /2010 1,600,000 1,593,694 1.06Fleet Credit Card Master Trust II 2002-C A 2.75% /2008 1,500,000 1,518,756 1.01Chase Credit Card Master Trust 2001-4 A 5.5% /2008 1,365,000 1,463,109 0.97FNMA Pool 641208 7% /2032 1,359,048 1,438,467 0.96Bank One Issuance Trust 2002-A4 A4 2.94% /2008 1,400,000 1,422,180 0.95Citibank Credit Card Issuance Trust 2003-A2 A2 2.7% /2008 1,400,000 1,412,056 0.94Chase Manhattan Auto Owner Trust 2002-A A4 4.24% /2008 1,300,000 1,345,408 0.90Bank One Issuance Trust 2003-A9 A9 3.86% /2011 1,300,000 1,314,814 0.88Chase Manhattan Auto Owner Trust 2003-C A4 2.94% /2010 1,200,000 1,195,125 0.80Honda Auto Receivables Owner Trust 2002-2 A4 4.49% /2007 1,150,000 1,193,227 0.79Ford Credit Auto Owner Trust 2002-C A4 3.79% /2006 1,100,000 1,128,906 0.75Ford Credit Auto Owner Trust 2002-D A4A 3.13% /2006 1,100,000 1,120,887 0.75Daimler Chrysler Auto Trust 2002-A A4 4.49% /2008 1,050,000 1,088,257 0.72Capital Auto Receivables Asset Trust 2002-2 A4 4.5% /2007 1,050,000 1,087,267 0.72Chase Manhattan Auto Owner Trust 2002-B A4 4.21% /2009 1,000,000 1,035,462 0.69Harley-Davidson Motorcycle Trust 2002-1 A2 4.5% /2010 1,000,000 1,034,051 0.69Honda Auto Receivables Owner Trust 2003-1 A4 2.48% /2008 995,000 997,699 0.66FNMA Pool 628075 7.5% /2032 870,543 929,849 0.62Honda Auto Receivables Owner Trust 2003-3 A4 2.77% /2008 900,000 903,227 0.60Freddie Mac Gold Pool C01441 7.5% /2032 793,762 849,077 0.57Harley-Davidson Motorcycle Trust 2003-3 A2 2.76% /2011 800,000 802,880 0.53Harley-Davidson Motorcycle Trust 2003-1 A2 2.63% /2010 750,000 754,942 0.50FNMA Pool 252717 7.5% /2029 590,784 631,031 0.42Citibank Credit Card Issuance Trust 2002-A3 A3 4.4% /2007 525,000 544,197 0.36American Express Credit Account Master Trust 2001-2 A 5.53% /2008 500,000 534,063 0.36Daimler Chrysler Auto Trust 2002-C A4 3.09% /2008 500,000 507,618 0.34FNMA Pool 657323 7.5% /2032 439,305 469,233 0.31Ford Credit Auto Owner Trust 2002-B A4 4.75% /2006 425,000 441,658 0.29Freddie Mac FHR 2457 PC 6.5% /2028 430,572 432,836 0.29Freddie Mac Gold Pool G01425 7.5% /2032 404,122 432,285 0.29FNMA Pool 647034 7.5% /2032 398,259 425,391 0.28Capital Auto Receivables Asset Trust 2002-3 A3 3.58% /2006 400,000 410,412 0.27Hyundai Auto Receivables Trust 2003-A A3 2.33% /2007 400,000 400,591 0.27

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

0.70%1.19% (0.20)% 1.23%

I

A

B

B

I A





3 Month US LIBOR Index (expressed in US dollars)

* Fund investment objective changed on 2 May 2003. Prior to that date, the fund investment aimwas: “To seek to maximise yield and total return primarily by investing in high quality short andmedium term transferable debt securities that are denominated in US Dollars.”.

Mortgage and Asset Backed Securities (continued)United States of America (continued)FNMA Pool 632894 7.5% /2030 372,342 397,708 0.26Nissan Auto Receivables Owner Trust 2002-B A4 4.6% /2007 350,000 363,169 0.24Citibank Credit Card Issuance Trust 2001-A8 A8 4.1% /2006 350,000 358,837 0.24William Street Funding 2003-1 A 1.47% /2006 (1) 350,000 350,765 0.23Freddie Mac Gold Pool C01380 7.5% /2032 327,745 350,585 0.23Connecticut RRB Special Purpose Trust 2001-1 A2 5.36% /2007 306,344 315,170 0.21Ford Credit Auto Owner Trust 2002-B A3A 4.14% /2005 298,627 302,676 0.20Honda Auto Receivables Owner Trust 2002-4 A4 2.7% /2008 300,000 301,964 0.20Freddie Mac Gold Pool C01353 7.5% /2032 268,882 287,620 0.19FNMA Pool 254250 7.5% /2032 265,035 283,090 0.19Harley-Davidson Motorcycle Trust 2002-2 A2 3.09% /2010 275,000 280,050 0.19Detroit Edison Securitization Funding 2001-1 A2 5.51% /2007 270,804 278,527 0.19Nissan Auto Receivables Owner Trust 2001-C A4 4.8% /2007 250,000 255,662 0.17Freddie Mac Gold Pool C44723 6.5% /2030 242,878 254,300 0.17Freddie Mac Gold Pool C25972 6.5% /2029 227,893 238,611 0.16Honda Auto Receivables Owner Trust 2002-1 A3 3.5% /2005 229,052 231,085 0.15Freddie Mac Gold Pool C26349 6.5% /2029 220,486 230,856 0.15Freddie Mac Gold Pool C27794 6.5% /2029 219,038 229,339 0.15National City Auto Receivables Trust 2002-A A3 4.04% /2006 225,938 228,738 0.15Freddie Mac Gold Pool C24727 6.5% /2029 208,060 217,846 0.15Freddie Mac Gold Pool C30218 6.5% /2029 205,080 214,725 0.14FNMA Pool 545440 7.5% /2031 200,237 213,878 0.14Freddie Mac Gold Pool G01479 7.5% /2032 162,189 173,492 0.13Freddie Mac Gold Pool G56725 7.5% /2031 149,828 160,269 0.12Freddie Mac Gold Pool G01074 7.5% /2029 149,161 159,556 0.12Freddie Mac Gold Pool C01372 7.5% /2032 145,036 155,143 0.11Freddie Mac Gold Pool C55976 7.5% /2031 122,005 130,507 0.10Freddie Mac Gold Pool C46909 7.5% /2030 89,076 95,284 0.06Freddie Mac Gold Pool C75106 6.5% /2032 74,938 78,462 0.05FNMA Pool 520823 7.5% /2029 71,330 76,189 0.05FNMA Pool 569411 7.5% /2031 59,501 63,555 0.04FNMA Pool 601120 7.5% /2031 54,986 58,732 0.04FNMA Pool 552622 7.5% /2030 21,028 22,461 0.01Freddie Mac Gold Pool C75705 7.5% /2033 15,084 16,135 0.01Freddie Mac Gold Pool C29254 7.5% /2029 14,833 15,866 0.01FNMA Pool 538135 7.5% /2030 10,372 11,079 0.01Freddie Mac Gold Pool C38620 6.5% /2030 8,982 9,405 0.01Freddie Mac Gold Pool C43706 7.5% /2030 7,834 8,380 0.01FNMA Pool 254133 7.5% /2031 6,893 7,363 0.00FNMA Pool 571361 7.5% /2031 5,094 5,441 0.00FNMA Pool 524945 7.5% /2030 5,031 5,373 0.00FNMA Pool 579794 7.5% /2031 4,472 4,776 0.00FNMA Pool 560868 7.5% /2031 3,318 3,544 0.00FNMA Pool 537999 7.5% /2030 1,244 1,329 0.00



Government BondsUnited States of AmericaUS Treasury Bill 0% 25/03/2004 20,000,000 19,898,889 13.26US Treasury Bill 0% 01/04/2004 7,500,000 7,463,221 4.97US Treasury 3% /2004 3,000,000 3,005,156 2.00


Government Bonds (continued)United States of America (continued)US Treasury 7.25% /2004 2,500,000 2,594,922 1.73US Treasury Bill 0% 15/01/2004 (2) 850,000 846,379 0.56


CanadaProvince of Quebec unsecur debentures SerPJ 6.125% /2011 470,000 525,492 0.35



Corporate BondsUnited States of AmericaJohn Hancock Financial Services sr nts 5.625% /2008 915,000 987,126 0.65Honeywell International nts 5.125% /2006 795,000 846,203 0.56American General Finance nts SerMTNH 4.625% /2010 820,000 834,997 0.56Marsh & McLennan Cos unsecur sr nts 5.375% /2007 702,000 750,770 0.50Lehman Brothers Holdings nts unsecur 8.25% /2007 550,000 640,140 0.43Goldman Sachs Group unsecur nts 4.125% /2008 565,000 579,728 0.39Citigroup unsecur nts 5.5% /2006 520,000 557,387 0.37Verizon Global Funding unsecur sr nts Ser* 6.125% /2007 500,000 545,982 0.36Countrywide Home Loans nts SerMTNL 3.25% /2008 510,000 501,506 0.33Household Finance unsecur sr unsubord 6.4% /2008 450,000 498,236 0.33Prudential Financial sr nts Ser144A priv plmt 6.375%/2006 450,000 489,508 0.33Wachovia nts 4.95% /2006 425,000 450,474 0.30Allstate Financial Global Funding II nts Ser144A priv plmt 2.625% /2006 435,000 434,191 0.29CIT Group nts 6.5% /2006 395,000 426,560 0.28General Electric Capital sr nts SerMTNA 4.25% /2010 395,000 393,115 0.26Verizon/New England sr nts 6.5% /2011 350,000 385,502 0.26Citicorp subord nts SerMTNF 6.375% /2008 330,000 367,330 0.24CVS nts unsecur 5.625% /2006 340,000 364,032 0.24CIT Group sr nts SerMTN 1.4% /2005 (1) 350,000 350,254 0.23American Honda Finance nts Ser144A priv plmt 3.85% /2008 320,000 323,040 0.22General Electric Capital nts SerMTNA 5.375% /2007 285,000 306,231 0.20Citigroup nts 5.75% /2006 285,000 305,816 0.20Bank of America unsecur sr nts 3.875% /2008 295,000 300,597 0.20Bank One NA Illinois nts SerBKNT 1.27% /2006 (1) 300,000 300,481 0.20Fleetboston Financial nts 7.25% /2005 265,000 287,954 0.19Bank of America nts 4.75% /2006 255,000 268,830 0.18TIAA Global Markets nts Ser144A priv plmt 5% /2007 250,000 265,202 0.18UnitedHealth Group unsecur sr nts 5.2% /2007 250,000 264,856 0.18CIT Group sr nts 2.875% /2006 260,000 259,985 0.17World Financial Properties pass thru certs Ser144A priv plmt 6.95% /2013 231,638 256,556 0.17Cooper Industries unsecur co gtd 5.25% /2007 235,000 251,205 0.17US Bank National Association nts SerBKNT 2.85% /2006 235,000 237,134 0.16Detroit Edison sr 6.125% /2010 210,000 230,697 0.15US Bancorp sr nts SerMTNN 5.1% /2007 215,000 228,091 0.15Wells Fargo & Co nts 1.27813% /2006 (1) 225,000 225,511 0.15JP Morgan Chase & Co unsecur subord nts 7% /2009 195,000 221,733 0.15Pricoa Global Funding I secur nts Ser144A priv plmt 3.9% /2008 220,000 220,064 0.15UnitedHealth Group unsecur sr nts 7.5% /2005 200,000 219,088 0.15Bank One subord nts SerMTNA 6% /2009 200,000 218,730 0.15

US Dollar Short Duration Fund


Marketvalue

% of netassets




Marketvalue

% of netassets




Corporate Bonds (continued)United States of America (continued)World Financial Properties pass thru certs Ser144A priv plmt 6.91% /2013 194,495 215,032 0.14Southwest Airlines pass thru certs 5.496% /2006 200,000 211,989 0.14Citicorp subord nts 6.75% /2005 195,000 209,608 0.14J.P. Morgan Chase & Co sr nts 5.25% /2007 175,000 186,989 0.12Bank of New York unsecur sr nts 5.2% /2007 170,000 181,466 0.12General Electric Capital nts SerMTNA 5% /2007 155,000 164,813 0.11Boeing Capital sr nts 5.75% /2007 130,000 139,810 0.09International Lease Finance unsecur nts 3.75% /2007 125,000 126,433 0.08Metlife sr nts 5.25% /2006 115,000 123,150 0.08John Hancock Global Funding II secur nts Ser144A priv plmt 7.9% /2010 100,000 117,976 0.08Household Finance nts 6.75% /2011 90,000 101,369 0.07Schering-Plough nts 5.3% /2013 95,000 96,446 0.06J.P. Morgan Chase & Co unsecur subord nts 6% /2009 80,000 87,301 0.06Wisconsin Electric Power nts 4.5% /2013 85,000 83,293 0.06McDonnell Douglas unsecur nts 6.875% /2006 55,000 60,468 0.04American General Finance nts SerMTNF 5.875% /2006 50,000 53,901 0.04Household Finance nts 4.125% /2008 45,000 45,392 0.03Prudential Funding nts SerMTN priv plmt 6.6% /2008 35,000 38,951 0.03Constellation Energy Group unsecur nts 6.35% /2007 35,000 38,130 0.03Household Finance nts 6.375% /2011 25,000 27,589 0.02


CanadaConoco Funding co gtd 5.45% /2006 610,000 654,474 0.44


United KingdomVodafone Group unsecur nts 7.75% /2010 440,000 521,126 0.35Vodafone Group unsecur nts 7.625% /2005 125,000 133,071 0.09


AustraliaMantis Reef nts Ser144A priv plmt 4.692% /2008 410,000 412,118 0.27


NetherlandsMonumental Global Funding II secured Ser144A priv plmt 6.05% /2006 250,000 267,476 0.18



Commercial PaperUnited States of AmericaFederal Home Loan Bank disc nts 0% 19/03/2004 10,000,000 9,973,585 6.64Fannie Mae disc nts 0% 24/03/2004 7,400,000 7,380,359 4.92


Total for Commercial Paper 11.56


Total NAV 150,107,241 100.00

(1) Variable coupon rates are those quoted as of 31 December 2003.(2) 800,000 US Treasury Bill 15/01/2004 held as collateral against bond futures positions by the broker.

Marketvalue

% of netassets




US Dollar Short Duration Fund

Marketvalue

% of netassets






Investment aims

0

5

10

15

20

25

30

25.66%26.10% 23.86% 27.94%

I

A

B

I A B

To seek to maximise total return, measured in US dollars, throughinvestment primarily in lower rated and unrated US fixed incomesecurities that offer a yield above that generally available on debt securities in the three highest rating categories of S&P or Moody’s.

Corporate BondsUnited States of AmericaNextel Communications unsecur sr nts 9.375% /2009 1,025,000 1,122,375 1.07Georgia-Pacific unsecur sr co gtd 8.875% /2010 970,000 1,110,650 1.06Xerox unsecur sr nts 7.125% /2010 975,000 1,048,125 1.00Payless ShoeSource unsecur sr subord nts 8.25% /2013 1,050,000 1,017,187 0.97Flowserve unsecur sr subord co gtd 12.25% /2010 860,500 1,002,482 0.96Pilgrims Pride sr unsecur co gtd 9.625% /2011 900,000 994,500 0.95JC Penney unsecur nts 8% /2010 855,000 984,319 0.94Qwest Services nts Ser144A priv plmt 13% /2007 830,000 979,400 0.94Millennium America unsecur sr subord co gtd 9.25% /2008 892,500 977,287 0.94American Tower unsecur nts CV 6.25% /2009 965,000 974,650 0.93ISP Chemco unsecur sr subord co gtd SerB 10.25% /2011 860,000 971,800 0.93Advanstar Communications secur sr nts Ser144A priv plmt 8.68% /2008 (1) 887,775 937,712 0.90Equistar Chemicals / Equistar Funding sr unsecur co gtd 10.125% /2008 842,500 926,750 0.89El Paso Production Holding unsecur sr co gtd Ser144A priv plmt 7.75% /2013 935,000 925,650 0.89Manitowoc unsecur sr subord 10.375% /2011 (EUR) 663,000 923,534 0.88Vintage Petroleum unsecur sr subord nts 7.875% /2011 870,000 922,200 0.88CB Richard Ellis unsecur sr subord co gtd 11.25% /2011 802,000 910,270 0.87Delhaize America unsecur co gtd 8.125% /2011 780,000 900,900 0.86DirecTV Holdings sr nts Ser144A priv plmt 8.375% /2013 770,000 897,050 0.86Laidlaw International sr nts Ser144A priv plmt 10.75% /2011 785,000 890,975 0.85Nortek Holdings sr nts Ser144A priv plmt step cpn 0% /2011 (1) 1,210,000 880,275 0.84Technical Olympic USA unsecur sr subord co gtd 10.375% /2012 763,500 858,938 0.82Owens-Illinois unsecur sr nts 7.35% /2008 825,000 849,750 0.81Iron Mountain sr unsecur co gtd 7.75% /2015 805,000 847,263 0.81Tyco International Group sr unsecur co gtd 6.75% /2011 765,000 838,631 0.80Ucar Finance sr unsecur co gtd 10.25% /2012 731,000 826,030 0.79Interep National Radio Sales sr unsecur subord co gtd SerB 10% /2008 920,500 819,245 0.78Dynegy Holdings unsecur sr nts 6.875% /2011 885,500 814,660 0.78iStar Financial sr nts unsecur 8.75% /2008 693,000 803,880 0.77Autonation sr unsecur co gtd 9% /2008 692,000 797,530 0.76Trimas unsecur co gtd 9.875% /2012 745,000 780,388 0.75Nevada Power 2nd mortgage Ser144A priv plmt 9% /2013 700,000 777,875 0.75Schuler Homes sr unsecur co gtd 9.375% /2009 684,000 774,630 0.75BRL Universal Equipment 2001 A LP sr secur 8.875% /2008 704,000 758,560 0.73Avaya sr nts secur 11.125% /2009 650,000 757,250 0.72LNR Property sr subord nts 7.625% /2013 715,000 756,113 0.72Nextmedia Operating unsecur sr subord co gtd 10.75% /2011 663,000 754,162 0.72Jacuzzi Brands sr nts secur Ser144A priv plmt 9.625% /2010 665,000 734,825 0.70Johnsondiversey sr subord unsecur co gtd SerB 9.625% /2012 652,500 730,800 0.70Gulfterra Energy Partner unsecur co gtd 10.625% /2012 584,500 727,702 0.70


US High Yield Bond Fund





First Boston High Yield Bond Index (expressed in US dollars)



Corporate Bonds (continued)United States of America (continued)Monongahela Power 1st mortgage 5% /2006 710,000 725,975 0.69Charter Communications Holdings / Charter Communications Holdings Capital unsecur srnts 9.625% /2009 805,000 704,375 0.67Nalco sr nts Ser144A priv plmt 7.75% /2011 645,000 693,375 0.66Altria Group nts 7% /2013 650,000 690,211 0.66Hilcorp Energy I / Hilcorp Finance sr nts Ser144A priv plmt 10.5% /2010 625,000 687,500 0.66Fisher Scientific International sr subord nts 8.125% /2012 630,000 678,825 0.65Host Marriott sr nts Ser144A priv plmt 7.125% /2013 660,000 676,500 0.65Intermet unsecur sr co gtd 9.75% /2009 653,500 673,105 0.64Primedia sr unsecur co gtd 8.875% /2011 630,000 667,800 0.64CMS Energy unsecur sr nts 8.5% /2011 610,000 661,850 0.63Muzak/Muzak Finance sr subord unsecur co gtd 9.875% /2009 681,000 661,421 0.63United States Steel sr nts 9.75% /2010 570,000 644,100 0.62Tekni-Plex unsecur sr subord co gtd SerB 12.75% /2010 576,000 630,720 0.60AmerisourceBergen unsecur sr nts 8.125% /2008 550,000 622,875 0.60Echostar DBS unsecur sr nts 9.125% /2009 549,000 616,939 0.59Amsted Industries sr nts Ser144A priv plmt 10.25% /2011 555,000 616,050 0.59Nextel Partners unsecur sr nts 11% /2010 535,000 593,850 0.57Sonic Automotive unsecur sr subord nts SerB 8.625% /2013 550,000 583,000 0.56Brand Services unsecur sr co gtd 12% /2012 502,000 582,947 0.56Rockwood Specialties Group sr subord nts Ser144A priv plmt 10.625% /2011 515,000 576,800 0.55Knology sr nts Ser144A priv plmt PIK 12% /2009 569,775 571,199 0.55MetroPCS sr nts Ser144A priv plmt 10.75% /2011 570,000 570,000 0.55Pliant unsecur sr subord nts 13% /2010 612,000 563,040 0.54MGM Mirage co gtd sr nts 6% /2009 545,000 562,712 0.54Venetian Casino Resort co gtd 11% /2010 482,500 562,112 0.54Primus Telecommunication Group sr nts SerB 9.875% /2008 533,000 554,320 0.53Dex Media disc nts Ser144A priv plmt step cpn 0% to 15/11/2008 / 9% to 15/11/2013 775,000 548,313 0.52Graphic Packaging International sr subord nts Ser144A priv plmt 9.5% /2013 485,000 538,350 0.52Smithfield Foods unsecur sr nts SerB 8% /2009 500,000 530,000 0.51Harrah's Operating Company sr unsecur co gtd 8% /2011 451,000 529,634 0.51Qwest unsecur nts 5.625% /2008 525,000 519,750 0.50Williams Cos nts 7.875% /2021 490,000 519,400 0.50United Rentals North America sr subord nts Ser144A priv plmt 7.75% /2013 505,000 518,256 0.50Fresenius Medical Care Capital Trust co gtd 7.875% /2008 480,000 514,800 0.49Salem Communications Holding sr subord unsecur co gtd SerB 9% /2011 470,000 513,475 0.49Hanover Equipment Trust sr secur SerB 8.75% /2011 482,000 513,330 0.49Omnicare sr subord nts 6.125% /2013 505,000 508,787 0.49Horseshoe Gaming Holding unsecur co gtd SerB 8.625% /2009 475,500 504,624 0.48Starwood Hotels & Resorts Worldwide sr co gtd 7.875% /2012 446,000 503,980 0.48Lear unsecur co gtd SerB 8.11% /2009 425,000 502,031 0.48Dex Media East / Dex Media East Finance sr subord nts Ser144A priv plmt 12.125% /2012 405,000 499,669 0.48

Marketvalue

% of netassets



Corporate Bonds (continued)United States of America (continued)AES sr secur nts Ser144A priv plmt 9% /2015 435,000 493,725 0.47Hilton Hotels unsecur sr nts 7.95% /2007 439,000 488,936 0.47Dex Media West / Dex Media Finance sr subordnts Ser144A priv plmt 9.875% /2013 420,000 488,775 0.47Tenet Healthcare unsecur sr nts 6.5% /2012 500,000 481,875 0.46NMHG Holding unsecur co gtd 10% /2009 431,500 478,965 0.46Williams Cos unsecur nts SerA 6.75% /2006 (1) 460,000 478,400 0.46Owens-Brockway Glass sr secur 8.75% /2012 425,000 474,937 0.45Park Place Entertainment unsecur sr subord nts 9.375% /2007 407,500 462,512 0.44Chesapeake Energy sr nts Ser144A priv plmt 7.5% /2013 425,000 462,188 0.44MSW Energy Holdings / MSW Energy Finance co gtd sr secur nts Ser144A priv plmt 7.375% /2010 440,000 462,000 0.44SBA Communications unsecur sr nts 10.25% /2009 465,000 458,025 0.44Station Casinos unsecur sr nts 8.375% /2008 425,000 457,406 0.44Allied Waste North America unsecur sr subord co gtd SerB 10% /2009 420,000 455,700 0.44Tesoro Petroleum unsecur sr subord co gtd SerB 9% /2008 430,000 448,275 0.43TRW Automotive sr subord nts 11% /2013 375,000 443,438 0.42Hanover Equipment Trust sr secur 8.5% /2008 415,000 441,975 0.42CA FM Lease Trust secur sr nts Ser144A priv plmt 8.5% /2017 388,161 437,803 0.42FMC sr secur 10.25% /2009 366,000 430,050 0.41Lodgenet Entertainment unsecur debentures sr subord 9.5% /2013 385,000 423,500 0.41Michael Foods sr subord nts Ser144A priv plmt 8% 2013 400,000 419,000 0.40Tempur-Pedic and Tempur Production USA sr subord nts Ser144A priv plmt 10.25% /2010 370,000 414,400 0.40Magnum Hunter Re unsecur co gtd 9.6% /2012 357,000 406,980 0.39Calpine unsecur sr nts 8.5% /2011 504,500 401,708 0.38Citgo Petroleum unsecur sr nts Ser144A priv plmt 11.375% /2011 340,000 396,100 0.38Smithfield Foods unsecur sr subord nts 7.625% /2008 390,000 395,850 0.38Rayovac sr subord nts 8.5% /2013 370,000 394,050 0.38PEI Holdings sr nts 11% /2010 335,000 390,275 0.37Dobson Communications sr nts unsecur 10.875% /2010 355,000 388,725 0.37PG&E secur sr nts Ser144A priv plmt 6.875% /2008 350,000 380,625 0.36Calpine secur sr nts Ser144A priv plmt 8.5% /2010 385,000 375,375 0.36Tesoro Petroleum unsecur sr subord nts 9.625% /2012 326,500 359,150 0.34General Nutrition Centers sr subord nts Ser144A priv plmt 8.5% /2010 340,000 350,200 0.34Oxford Industries sr nts Ser144A priv plmt 8.875% /2011 315,000 346,106 0.33Granite Broadcasting secur Ser144A priv plmt 9.75% /2010 335,000 335,000 0.32Southern Natural Gas nts Ser144A priv plmt 8.875% /2010 295,000 333,350 0.32TRW Automotive sr nts 9.375% /2013 290,000 332,775 0.32Meritage unsecur sr co gtd 9.75% /2011 285,000 319,913 0.31Transcontinental Gas Pipe unsecur sr nts SerB 8.875% /2012 265,000 314,688 0.30Allied Waste North America co gtd SerB 8.875% /2008 270,000 303,750 0.29PSEG Energy Holdings unsecur sr nts 8.625% /2008 276,000 302,565 0.29Tenet Healthcare nts 7.375% /2013 285,000 287,850 0.28

Marketvalue

% of netassets







Corporate Bonds (continued)United States of America (continued)PPC Escrow sr subord nts Ser144A priv plmt 9.25% /2013 275,000 285,313 0.27Allegheny Energy unsecur nts 7.75% /2005 275,000 278,781 0.27Muzak / Muzak Finance sr nts Ser144A priv plmt 10% /2009 260,000 278,200 0.27Charter Communications Holdings sr disc nts stepcpn 0% to 15/01/2006 / 13.5% to 15/01/2011 375,000 277,500 0.27Westlake Chemical unsecur sr co gtd Ser144A privplmt 8.75% /2011 245,000 269,500 0.26General Cable sr nts Ser144A priv plmt 9.5% /2010 250,000 268,750 0.26Manor Care sr unsecur co gtd 8% /2008 233,500 265,606 0.25PSEG Energy Holdings unsecur nts 7.75% /2007 245,000 261,231 0.25National Beef Packing / NB Finance sr nts Ser144A priv plmt 10.5% /2011 250,000 258,750 0.25Renaissance Media Group unsecur sr disc co gtd step cpn 10% to 15/04/2008 235,000 244,106 0.23Charter Communications Holdings sr disc nts stepcpn 0% to 15/05/2006 / 11.75% to 15/05/2011 367,000 244,055 0.23Nextel Communications unsecur sr nts 7.375% /2015 225,000 243,000 0.23Echostar DBS sr nts Ser144A priv plmt 6.375% /2011 235,000 242,638 0.23LNR Property sr subord nts Ser144A priv plmt 7.25% /2013 235,000 240,288 0.23Pegasus Communications sr nts SerB 9.75% /2006 257,000 233,228 0.22SBA Telecommunications / SBA Communications srdisc nts Ser144A priv plmt step cpn 0% to 15/12/2007 / 9.75% to 15/12/20 325,000 231,563 0.22CSC Holdings unsecur sr nts SerB 8.125% /2009 200,000 216,000 0.21CSC Holdings unsecur sr subord debentures 10.5% /2016 180,000 206,325 0.20Nexstar Finance sr subord nts Ser144A priv plmt 7% /2014 195,000 196,950 0.19Ipalco Enterprises sr secur 8.625% /2011 175,000 196,438 0.19CSC Holdings sr subord debentures 9.875% /2013 180,000 189,000 0.18Koppers secur sr nts Ser144A priv plmt 9.875% /2013 170,000 188,275 0.18Louisiana-Pacific unsecur sr subord nts 10.875% /2008 153,000 182,835 0.17Republic Engineered Products defaulted secur sr 10% /2009 415,059 176,400 0.17Northwest Pipeline sr unsecur co gtd 8.125% /2010 155,000 172,825 0.17Nortek Holdings sr nts SerB 9.25% /2007 166,500 171,911 0.16Avalon Cable Holding Finance sr disc nts step cpn 11.875% to 01/12/2008 154,401 163,666 0.16MSW Energy Holdings LLC/MSW Energy Finance co gtd sr secur 8.5% /2010 135,000 147,825 0.14Couche-Tard US / Couche-Tard Finance sr subord ntsSer144A priv plmt 7.5% /2013 140,000 147,350 0.14CSC Holdings unsecur sr nts 7.25% /2008 140,000 145,950 0.14SBA Communications unsecur sr disc nts step cpn 12% to 01/03/2008 126,000 137,970 0.13Tekni-Plex secur sr nts Ser144A priv plmt 8.75% /2013 130,000 136,175 0.13AES unsecur sr nts 9.375% /2010 118,000 131,423 0.13ABB Finance sr unsecur unsubord co gtd SerEMTN 6.75% /2004 135,000 129,642 0.12Pegasus Satellite Communications sr disc nts unsecur step cpn 0% to 01/03/2004 / 13.5% to 01/03/2007 150,000 127,688 0.12JC Penney Co unsecur nts 7.6% /2007 115,000 127,506 0.12

Marketvalue

% of netassets



Corporate Bonds (continued)United States of America (continued)Sonic Automotive sr subord nts Ser144A priv plmt 8.625% /2013 120,000 127,200 0.12Advanstar Communications unsecur sr subord ntsco gtd SerB 12% /2011 115,000 121,756 0.12Simmons sr subord nts Ser144A priv plmt 7.875% /2014 120,000 121,200 0.12JC Penney Co nts SerMTNA 6.875% /2015 102,000 107,738 0.10American Tower sr nts 9.375% /2009 100,000 107,000 0.10National Nephrology Associates sr subord nts Ser144A priv plmt 9% /2011 100,000 105,250 0.10CMS Energy unsecur sr nts 7.5% /2009 100,000 103,500 0.10AES unsecur sr nts 8.875% /2011 87,000 95,265 0.09Pegasus Communications unsecur sr nts SerB* 12.5% /2007 100,000 94,500 0.09Manor Care unsecur sr nts co gtd 7.5% /2006 85,000 92,650 0.09KRATON Polymers / Capital sr subord nts Ser 144A priv plmt 8.125% /2014 85,000 88,825 0.08Primus Telecommunications Group unsecur sr nts 11.25% /2009 75,000 79,875 0.08CBRE Escrow unsecur sr nts Ser144A priv plmt 9.75% /2010 65,000 72,475 0.07Pegasus Satellite Communications unsecur sr nts 12.375% /2006 75,000 70,969 0.07HMH Properties sr nts SerC 8.45% /2008 48,000 50,280 0.05Hilton Hotels unsecur sr nts 7.625% /2012 40,000 45,150 0.04Republic Technologies International sr secur co gtd 13.75% /2009 (2) 2,205,000 22,050 0.02Rhythms Netconnections sr disc nts SerB 13.5% to 15/05/2008 (2) 4,091,952 0 0.00Rhythms Netconnections unsecur sr nts SerB 14% /2010 (2) 4,175,473 0 0.00Exodus Communications unsecur sr nts 11.625% /2010 (2) 1,269,704 0 0.00Encompass Services unsecur sr subord co gtd 10.5% /2009 (2) 715,000 0 0.00XO Communications sr disc nts step cpn defaulted0% to 01/12/2004 / 12.125% 01/12/2009 (2) 1,000,000 0 0.00XO Communications unsecur sr disc nts step cpn defaulted 9.45% to 15/04/2008 (2) 3,715,000 0 0.00XO Communications defaulted unsecur sr nts 10.75% /2008 525,000 0 0.00Esprit Telecom Group sr nts Ser$ 11.5% /2007 50,000 0 0.00


CanadaHollinger Participation Trust sr nts Ser144A privplmt PIK 12.125% /2010 798,192 951,844 0.91Alliance Atlantis Communications unsecur sr subord nts 13% /2009 703,000 804,935 0.77Tembec Industries sr unsecur co gtd 8.5% /2011 750,000 780,000 0.75Abitibi-Consolidated nts 6% /2013 600,000 576,126 0.55Husky Oil FRB 8.9% /2028 (1) 440,500 516,486 0.49Norampac sr nts 6.75% /2013 355,000 371,863 0.36


United KingdomHuntsman International unsecur sr subord SerEUR 10.125% /2009 (EUR) 490,000 608,429 0.58Avecia Group sr unsecur co gtd 11% /2009 600,000 543,000 0.53Huntsman Advanced Materials sr secur Ser144A priv plmt 11% /2010 315,000 349,650 0.33ABB International Finance unsecur sr unsubordSerEMTN 11% /2008 (EUR) 230,000 328,624 0.31

Marketvalue

% of netassets







Corporate Bonds (continued)United Kingdom (continued)Huntsman ICI Chemicals unsecur sr subord co gtd 10.125% /2009 245,000 253,575 0.24Esprit Telecom Group sr nts SerDM 11.5% /2007 (2) (EUR) 800,000 0 0.00Esprit Telecom Group sr nts 10.875% /2008 (2) 85,000 0 0.00Esprit Telecom sr nts defaulted 11% /2008 (2) (DEM) 3,500,000 0 0.00


MexicoTV Azteca sr nts SerB 10.5% /2007 848,000 864,960 0.83AXtel unsecur sr co gtd Ser144A priv plmt 11% /2013 570,000 584,250 0.56Satelites Mexicanos sr nts SerB defaulted 10.125% /2004 782,000 355,810 0.34


FranceVivendi Universal sr nts Ser144A priv plmt 9.25% /2010 800,000 945,586 0.90Rhodia sr subord Ser144A priv plmt 8.875% /2011 730,000 675,250 0.65


GermanyMesser Griesheim Holding sr nts 10.375% /2011 (EUR) 668,000 981,024 0.94


IrelandJSG Funding unsecur sr nts SerEUR 10.125% /2012 (EUR) 607,000 868,484 0.83


BelgiumTelenet Communications sr nts Ser144A priv plmt 9% /2013 (EUR) 355,000 465,414 0.44Telenet Group Holding sr nts Ser144A priv plmt step cpn 0% to 15/12/2008 / 11.5% to 15/06/2014 140,000 89,133 0.09


ItalySafilo Capital International sr nts Ser144A privplmt 9.625% /2013 (EUR) 445,000 488,041 0.47


AustraliaMurrin Murrin Holdings Property sr nts secur defaulted 9.375% /2007 (2) 2,303,000 230 0.00


NetherlandsKPNQwest sr unsecur CV 10% /2012 (EUR) 180 1 0.00



Marketvalue

% of netassets



Government BondsUnited States of AmericaUS Treasury Bill 0% 15/01/2004 (3) 200,000 199,927 0.19US Treasury Bill 0% 25/03/2004 (3) 200,000 199,533 0.19


ColombiaRepublic of Columbia nts 10.75% /2013 310,000 354,175 0.34



Equities & WarrantsUnited States of AmericaDobson Communications Pfd Stock Ser144A priv plmt 6% /2016 976 175,802 0.17Motient 40,237 162,960 0.16Paxson Communications 85,000 7,841 0.01XO Communications Pfd Stock 1 0 0.00Focal Communications 1 0 0.00


SwedenSong Networks Holding 20,589 193,035 0.18


United KingdomViatel Holding (2) 1 3 0.00


Total for Equities & Warrants 0.52



Equities & WarrantsUnited States of AmericaTNP Enterprises Pfd Stock PIK 14.5% /2005 1,016 1,104,443 1.05Dobson Communications Pfd Stock PIK 13% /2009 694 747,785 0.72Paxson Communications Pfd Stock PIK 13.25% /2006 57 525,825 0.50Paxson Communications CV Pfd Stock Ser144A priv plmt PIK 9.75% /2006 39 312,333 0.30Paxson Regd Ser144A 72,731 5,837 0.01SW Acquisition Wts exp. 1/04/2011 (2) 3,483 3,483 0.00XO Communications Pfd Stock PIK 14% /2009 57,471 575 0.00Crown Castle International Pfd Stock PIK 12.75% /2010 0 55 0.00Concentric Network Pfd Stock SerB PIK 13.5% /2010 2,985 30 0.00Intermedia Communications Pfd Stock SerB PIK 13.5% /2009 1 30 0.00

Marketvalue

% of netassets







Equities & Warrants (continued)United States of America (continued)Republic Technology Wts exp. 15/07/2009 (2) 2,205 0 0.00XO Communications 'C' Wts exp. 16/01/2010 (2) 1 0 0.00


SwedenSong Networks Holding Pfd Stock CV 0% /2049 (2) 14,588 68,386 0.07


ColombiaOccidente Y Caribe Rule 144A Wts exp. 15/03/2004 (2)21,220 0 0.00



Corporate BondsUnited KingdomViatel sr disc nts step cpn defaulted 12.5% to 15/04/2008 (2) 5,025,000 0 0.00


United States of AmericaXO Communications unsecur sr nts defaulted 10.75% /2009 3,000,000 0 0.00



Total other transferable securities not admitted to officialexchange listing or dealt in on another regulated market 2,768,782 2.65


Total NAV 104,502,426 100.00

(1) Variable coupon rates are those quoted as of 31 December 2003.(2) This security is valued at its fair market value.(3) Security held as collateral against bond futures positions by the broker.

Marketvalue

% of netassets







Investment aims

Amortisedcost

% of netassets


specifiedInvestment

Statement of investmentsTo provide liquidity and high current income, to the extentconsistent with the preservation of capital, primarily by investingin high quality short-term transferable debt securities that aredenominated in Euro, provided that, at the time of acquisition,their initial or residual maturity does not exceed 12 months.The Fund may also hold up to 49% of its net assets in cash andcash equivalents. Commercial Paper

Enel 09/01/2004 10,000,000 9,996,147 1.44KFW International Finance 12/01/2004 10,000,000 9,994,153 1.44Unicredito Italiano Capital 15/01/2004 10,000,000 9,992,479 1.44Amstel 21/01/2004 10,000,000 9,988,983 1.44HSH Nordbank 30/04/2004 10,000,000 9,930,204 1.42Emerson Electric 20/01/2004 9,000,000 8,990,521 1.28Nuon 02/02/2004 9,000,000 8,983,552 1.28DekaBank 06/01/2004 8,000,000 7,998,132 1.15Aviva 15/01/2004 8,000,000 7,993,941 1.15ING Bank 16/01/2004 8,000,000 7,993,469 1.15Nederlandse Gasunie 23/01/2004 8,000,000 7,990,280 1.15Generalita Valenciana 26/01/2004 8,000,000 7,988,912 1.15Volkswagen 26/01/2004 8,000,000 7,988,802 1.15Allianz Finance 27/01/2004 8,000,000 7,988,395 1.15Depfa Bank 29/01/2004 8,000,000 7,987,508 1.15Cancara 02/02/2004 8,000,000 7,985,311 1.15Unilever 03/02/2004 8,000,000 7,985,051 1.15Lake Constance 09/02/2004 8,000,000 7,982,162 1.15HBOS 16/02/2004 8,000,000 7,978,813 1.15Alliance Leicester 17/02/2004 8,000,000 7,978,509 1.15Prudential 17/02/2004 8,000,000 7,978,446 1.15GE Capital 23/02/2004 8,000,000 7,975,866 1.15SBAB-Statens 02/03/2004 8,000,000 7,971,884 1.15Superior Funding 20/01/2004 7,250,000 7,242,291 1.04Nationwide 12/01/2004 7,000,000 6,995,923 1.01WestLB 14/01/2004 7,000,000 6,995,109 1.01Westpac Banking 16/01/2004 7,000,000 6,994,258 1.01IIB Capital 16/01/2004 7,000,000 6,994,252 1.01Norddeutsche Landesbank 20/01/2004 7,000,000 6,992,606 1.01Schlumberger 21/04/2004 7,000,000 6,992,268 1.01BFCM 26/01/2004 7,000,000 6,990,244 1.01Centauri 26/01/2004 7,000,000 6,990,188 1.01BSCH Issuances 26/01/2004 7,000,000 6,990,147 1.01Cantabric 27/01/2004 7,000,000 6,989,701 1.01BMW 30/01/2004 7,000,000 6,988,516 1.01OEKB 03/02/2004 7,000,000 6,986,930 1.01Bank of Western Australia 06/02/2004 7,000,000 6,985,582 1.01Grampian 10/02/2004 7,000,000 6,983,852 1.00HSBC 13/02/2004 7,000,000 6,982,537 1.00KBC 17/02/2004 7,000,000 6,980,963 1.00Spintab 23/02/2004 7,000,000 6,978,714 1.00ABN Amro Bouwfonds 02/04/2004 7,000,000 6,962,389 1.00Sachsen Landesbank 05/04/2004 7,000,000 6,961,633 1.00Tulip Funding 06/01/2004 6,500,000 6,498,457 0.93Clearstream 07/01/2004 6,500,000 6,498,122 0.93Mont Blanc Capital 12/01/2004 6,196,000 6,192,341 0.89Banca Populare 12/01/2004 6,000,000 5,996,457 0.86Paccar 15/01/2004 6,000,000 5,995,429 0.86Rheinmain 15/01/2004 6,000,000 5,995,417 0.86Arabella 21/01/2004 6,000,000 5,993,278 0.86Honda 26/01/2004 6,000,000 5,991,547 0.86Macquarie Bank 27/01/2004 6,000,000 5,991,245 0.86Bankinter 03/02/2004 6,000,000 5,988,864 0.86Caterpillar International Finance 03/02/2004 6,000,000 5,988,700 0.86MANE Funding 24/02/2004 6,000,000 5,980,996 0.86Toyota Motor Credit 05/02/2004 5,500,000 5,489,021 0.79Silver Tower 05/01/2004 5,000,000 4,999,106 0.72Landesbank Baden-Wuerttemberg 12/01/2004 5,000,000 4,997,105 0.72Northern Rock 21/01/2004 5,000,000 4,994,435 0.72Scaldis 26/01/2004 5,000,000 4,992,938 0.72National Australia Bank 27/01/2004 5,000,000 4,992,747 0.72Toyota Motor Credit 10/02/2004 5,000,000 4,988,600 0.72Rathgar Capital 10/02/2004 5,000,000 4,988,528 0.72SNCB Belgium Rail 23/02/2004 5,000,000 4,984,888 0.72BSCH Issuances 12/03/2004 5,000,000 4,979,869 0.72Bankinter 13/04/2004 4,500,000 4,472,335 0.64Tango 30/01/2004 4,250,000 4,243,039 0.61

0

1

2

3

1.81%1.97% 1.12% 2.26%

I

A

B

I A B



Euro Liquidity Fund

0

1

2

3

1.84%1.99% 2.23% 2.26%

IX

AX

M

IX AX M




1 Month Euro LIBID Index (expressed in Euro)

Fund (net of expenses) Class IX shares

Fund (net of expenses) Class AX shares

Fund (net of expenses) Class MX shares

1 Month Euro LIBID Index (expressed in Euro)


Amortisedcost

% of netassets


specifiedInvestment


Commercial Paper (continued)Minnesota Mining 20/01/2004 4,000,000 3,995,810 0.57Best Funding 07/01/2004 3,600,000 3,598,907 0.52Deutsche Bank 06/08/2004 3,500,000 3,453,991 0.50Helaba International Finance 06/08/2004 3,500,000 3,453,587 0.50Sharp International Finance 09/01/2004 3,000,000 2,998,770 0.43Compass Securitisation 12/01/2004 3,000,000 2,998,247 0.43Tango 16/01/2004 3,000,000 2,997,527 0.43Kaiserplatz Funding 27/01/2004 3,000,000 2,995,543 0.43SNCB Belgium Rail 27/02/2004 3,000,000 2,990,075 0.43Landesbank Baden-Wuerttemberg 20/01/2004 2,000,000 1,997,898 0.29Exelsior 20/01/2004 2,000,000 1,997,878 0.29Bankinter 21/01/2004 2,000,000 1,997,770 0.29Exelsior 27/01/2004 2,000,000 1,997,044 0.29Prudential 30/01/2004 2,000,000 1,996,698 0.29E.ON 03/02/2004 2,000,000 1,996,236 0.29Northern Rock 06/02/2004 2,000,000 1,995,916 0.29Lake Constance 19/01/2004 1,000,000 999,010 0.14Paccar 19/01/2004 1,000,000 999,004 0.14Compass Securitisation 30/01/2004 1,000,000 998,353 0.13Landesbank Sachsen-Anhalt 03/03/2004 500,000 498,196 0.07


Interest Bearing Certificates of DepositBayerische Landesbank 2.15% 08/03/2004 7,000,000 7,000,119 1.01

Total for Interest Bearing Certificates of Deposit 1.01

Corporate BondsLFA Foerderbank Bayer 7.8% 11/02/2004 2,898,671 2,915,822 0.42



Total NAV 695,040,192 100.00


Euro Liquidity Fund



0

1

2

3

4

3.15%3.24% 2.31% 3.63%

I A B

I

A

B

0

1

2

3

4

3.20% 3.63%

IX

IX

Investment aimsTo provide liquidity and high current income, to the extentconsistent with the preservation of capital, primarily by investingin high quality short-term transferable debt securities that aredenominated in Sterling, provided that at the time of acquisition,their initial or residual maturity does not exceed 12 months. TheFund may also hold up to 49% of its net assets in cash and cashequivalents.

Commercial PaperNational Bank of Australia 05/01/2004 500,000 499,852 3.95Hitachi 05/01/2004 500,000 499,842 3.95Grampian 05/01/2004 500,000 499,840 3.95ENI 09/01/2004 500,000 499,636 3.95ABN Amro Bank 12/01/2004 500,000 499,488 3.95Dexia CLF 12/01/2004 500,000 499,482 3.95Bank of Western Australia 12/01/2004 500,000 499,471 3.95Aviva 13/01/2004 500,000 499,428 3.95Toyota Finance 19/01/2004 500,000 499,110 3.94Scaldis 20/01/2004 500,000 499,067 3.94Banque Federative 20/01/2004 500,000 499,059 3.94Mont Blanc Capital 22/01/2004 500,000 498,943 3.94Merrill Lynch 23/01/2004 500,000 498,905 3.94General Electric Capital 26/01/2004 500,000 498,743 3.94CBA 03/02/2004 500,000 498,327 3.93Legal & General 10/02/2004 500,000 497,951 3.93Banque Générale du Luxembourg 17/02/2004 500,000 497,583 3.93National Bank of Australia 17/02/2004 500,000 497,582 3.93Silver Tower 18/02/2004 500,000 497,486 3.93


Interest Bearing Certificates of DepositHBOS 3.45% 02/01/2004 500,000 500,000 3.95Lloyds TSB Group 3.72% 09/01/2004 500,000 499,996 3.95

Total for Interest Bearing Certificates of Deposit 7.90


Total NAV 12,657,794 100.00

Amortisedcost

% of netassets

Nominal inSterling


Statement of investmentsTransferable securities admitted to official exchange listing or dealtin on another regulated market. As at 31 December 2003, expressedin Sterling.


Sterling Liquidity Fund




1 Month GBP LIBID Index (expressed in Sterling)


1 Month GBP LIBID Index (expressed in Sterling)



Investment aimsTo provide liquidity and high current income, to the extentconsistent with the preservation of capital, primarily by investingin high quality short-term transferable debt securities that aredenominated in US dollars, provided that, at the time ofacquisition, their initial or residual maturity does not exceed 12 months. The Fund may also hold up to 49% of its net assetsin cash and cash equivalents.

Commercial PaperRoyal Bank of Scotland 02/01/2004 20,000,000 20,000,000 4.59UBS Finance 05/01/2004 20,000,000 19,998,367 4.59WestPac Capital 05/01/2004 20,000,000 19,998,217 4.59New Center Asset Trust 08/01/2004 20,000,000 19,996,367 4.59ABN Amro Finance 09/01/2004 20,000,000 19,995,839 4.59Daimler Chrylser 13/01/2004 20,000,000 19,993,278 4.59Dexia Delaware 14/01/2004 20,000,000 19,992,833 4.59Mortgage International Network 14/01/2004 20,000,000 19,992,733 4.59Falcon Asset Securitization 28/01/2004 20,000,000 19,984,400 4.59General Electric Capital 03/03/2004 20,000,000 19,962,722 4.59American General Finance 15/01/2004 15,000,000 14,994,204 3.44Barton Capital 05/01/2004 11,483,000 11,481,957 2.64Barton Capital 07/01/2004 10,960,000 10,958,341 2.52Yorktown Capital 09/01/2004 10,000,000 9,997,861 2.30CitiCorp 12/01/2004 10,000,000 9,997,000 2.30ING (US) Funding 17/02/2004 10,000,000 9,986,200 2.30CitiCorp 07/01/2004 9,000,000 8,998,662 2.08


Federal Agency Discount NotesFederal National Mortgage Association 14/01/2004 30,000,000 29,989,250 6.89Federal National Mortgage Association 17/03/2004 20,000,000 19,954,167 4.59Federal National Mortgage Association 08/03/2004 15,000,000 14,970,300 3.44Federal National Mortgage Association 05/04/2004 10,000,000 9,971,278 2.29

Total for Federal Agency Discount Notes 17.21

Short-Term Bank Notes & Certificates of DepositBNP Paribas 1.09% 20/01/2004 20,000,000 20,000,000 4.59Canadian Imperial Bank 1.06% 06/01/2004 20,000,000 20,000,000 4.59

Total for Short-Term Bank Notes & Certificates of Deposit 9.18


Total NAV 435,322,738 100.00

Amortisedcost

% of netassets





US Dollar Liquidity Fund

0.0

0.4

0.8

1.2

0.44%0.79% 0.37% 1.10%

I A B

I

A

B

0.0

0.4

0.8

1.2

0.38%0.78% 0.38% 0.98% 1.10%

IX

AX

BX

MX

IX AX BX MX




Citi 3 Month US T-Bill Index (expressed in US dollars)


Fund (net of expenses) Class AX shares

Fund (net of expenses) Class BX shares

Fund (net of expenses) Class MX shares

Citi 3 Month US T-Bill Index (expressed in US dollars)



Investment aimsTo seek long-term capital appreciation, measured in Euro, byinvesting in a globally diversified portfolio of equity and fixedincome securities. The Fund may invest from 30% to 80% of the net assets in equities and convertible securities and from20% to 70% of the net assets in fixed income securities, as market conditions dictate.

Equities & WarrantsUnited States of AmericaTravelers Property Casualty 'A' 41,889 558,254 1.05Pfizer 19,269 536,065 1.01Wyeth 13,794 459,143 0.87ChevronTexaco 6,546 446,889 0.84Loews - Carolina Group 22,311 446,008 0.84Lyondell Chemical 32,921 443,439 0.84General Electric 18,013 438,965 0.83Duke Energy 26,424 435,788 0.82Lockheed Martin 10,643 428,050 0.81Hewlett-Packard 22,539 409,979 0.77Microsoft 17,940 391,931 0.74Valero Energy 10,540 390,881 0.74Oracle 32,905 344,555 0.65Accenture 'A' 15,967 332,108 0.63Mattel 19,675 298,886 0.56ConocoPhillips 5,687 294,952 0.56Time Warner 20,228 287,229 0.54Cisco Systems 14,389 277,256 0.52Merrill Lynch & Co. 5,813 268,977 0.52Intel 9,841 250,436 0.48Schlumberger 5,582 245,934 0.47


United KingdomDiageo 66,885 695,415 1.31Centrica 201,784 601,869 1.14Intercontinental Hotels Group 69,485 520,605 0.98United Utilities 69,741 488,283 0.92Kelda Group 63,897 420,865 0.80Unilever 52,102 383,037 0.72GlaxoSmithKline 19,151 347,504 0.66Abbey National 39,702 298,344 0.56Anglo American (GBP) 12,652 215,807 0.41


JapanMitsubishi 65,000 547,919 1.04NTT DoCoMo 294 530,125 1.00Sankyo 29,200 436,599 0.82Pioneer 19,600 430,499 0.81Toyota Motor 16,000 429,787 0.81Mitsubishi Estate 56,000 422,189 0.80Mitsubishi Tokyo Financial Group 63 390,815 0.74Nikko Cordial 77,000 341,106 0.65


SwitzerlandCredit Suisse Group 19,947 578,968 1.09Roche Holding 'Genußschein' 5,925 474,119 0.90Nestlé Regd 2,311 458,054 0.87Swiss Reinsurance Regd 8,502 455,372 0.86Alcon 6,810 329,263 0.61


GermanyCelanese 14,757 479,603 0.91Adidas-Salomon 5,189 468,567 0.89E.ON 8,326 430,787 0.81MAN 14,637 352,020 0.67Metro 6,452 225,497 0.43


Marketvalue



Select Global Diversified (Euro) Fund

0

1

2

3

4

5

6

7

8

7.26%7.87% 6.22% 2.97%

I

A

B

I A B





50% MSCI World (Net) Index / 50% JPM Global Government (Traded) Index (expressed in Euro)


Equities & Warrants (continued)FranceTotal 5,134 751,104 1.42Aventis 8,591 446,732 0.85STMicroelectronics 20,192 431,705 0.82Valeo 10,228 319,727 0.60


CanadaPlacer Dome 37,943 538,173 1.02Barrick Gold 21,928 400,083 0.75


Hong KongHenderson Land Development 117,000 410,068 0.77Swire Pacific 'A' 74,500 364,643 0.69


ItalyENI 39,218 586,701 1.11


SpainAltadis 24,603 547,663 1.03


MexicoTelefonos de Mexico ADR 'L' 20,059 527,332 1.00


SingaporeUnited Overseas Bank 44,505 274,364 0.52Singapore Airlines 47,569 248,821 0.47


PortugalElectricidade de Portugal 195,892 407,455 0.77


NetherlandsTPG 21,230 393,817 0.74


AustraliaMacquarie Infrastructure Group 192,729 390,355 0.74


South AfricaSteinhoff International Holdings 381,272 349,775 0.66


South KoreaPosco ADR 13,154 349,563 0.66



Marketvalue



Fixed Income Securities

Government BondsSupra-NationalInternational Bank for Reconstruction & Development unsecur unsubord 4.75% /2004 (JPY) 103,600,000 803,458 1.52European Investment Bank unsecur sr unsubord SerINTL 3.25% /2008 695,000 685,965 1.30European Investment Bank 7.625% /2006 (GBP) 220,000 336,204 0.64International Bank for Reconstruction & Development nts 5% /2006 (USD) 390,000 328,962 0.62European Investment Bank unsecur unsubord SerEARN 3.875% /2005 290,000 295,597 0.56European Investment Bank nts 6.125% /2005 (GBP) 190,000 277,211 0.52


FranceGovernment of France 3% /2009 605,000 698,549 1.31Government of France 3% /2012 600,000 670,166 1.27Government of France OAT 5.5% /2010 270,000 294,530 0.56Government of France SerTC10 3.38% /2006 (1) 275,000 279,373 0.53


GermanyDeutsche Bundesrepublik Ser0303 4.25% /2014 355,000 353,935 0.67Deutsche Bundesrepublik Ser98 5.625% /2028 305,000 334,555 0.63Bundesobligation Ser136 5% /2005 230,000 239,120 0.45


United States of AmericaUS Treasury Notes 4.25% /2013 (USD) 650,000 515,386 0.97US Treasury Note 1.625% /2005 (USD) 415,000 330,494 0.62


NorwayGovernment of Norway 5.75% /2004 (NOK) 5,540,000 680,631 1.29


BelgiumKingdom of Belgium Ser28 5.75% /2008 600,000 653,940 1.24


AustriaRepublic of Austria SerEMTN 5.5% /2007 605,000 651,464 1.23


DenmarkKingdom of Denmark nts 4% /2005 (DKK) 2,230,000 306,131 0.58


SwedenSwedish Government Ser3105 3.5% /2015 (SEK) 2,350,000 303,030 0.57


New ZealandGovernment of New Zealand Ser216 4.5% /2016 (NZD) 465,000 301,385 0.57


Marketvalue

% of netassets


specifiedInvestment


Government Bonds (continued)HungaryRepublic of Hungary 4% /2010 280,000 276,024 0.52



Corporate BondsUnited States of AmericaKFW International Finance unsecur sr unsubord bnk gtd 6.375% /2005 (GBP) 860,000 1,260,042 2.38General Electric Capital unsecur sr unsubord SerEMTN 4.5% /2008 (GBP) 810,000 1,122,932 2.12KFW International Finance bnk gtd SerINTL 5.25% /2006 (USD) 745,000 631,659 1.19General Electric Capital unsecur sr unsubord SerDEC 3% /2007 (USD) 420,000 333,374 0.63Household Finance nts SerEMTN 6.25% /2005 270,000 285,160 0.54General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 165,000 173,473 0.33Coca-Cola Enterprises sr nts unsecur SerEMTN 5.875% /2007 160,000 170,949 0.32Goldman Sachs Group nts 4.25% /2010 170,000 169,218 0.32General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 155,000 163,680 0.31Verizon Global Funding unsecur sr unsubord nts 7.25% /2010 (USD) 170,000 155,536 0.29Citigroup nts 5.75% /2006 (USD) 165,000 140,450 0.27General Motors unsecur sr nts 7.125% /2013 (USD) 33,000 28,589 0.06


GermanyDepfa Pfandbriefbank secur Ser478 5% /2006 635,000 666,020 1.26Kreditanstalt fuer Wiederaufbau govt gtd SerINTL 4.75% /2006 380,000 396,891 0.75


United KingdomHBOS Treasury Services bnk gtd SerEMTN 3.375% /2010 225,000 215,629 0.41Vodafone Group unsecur nts 7.75% /2010 (USD) 220,000 206,697 0.39Rio Tinto Finance unsecur unsubord co gtd SerEMTN 5.125% /2007 160,000 168,413 0.32


NetherlandsOlivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 165,000 190,228 0.36Deutsche Telekom International Finance unsecur unsubord co gtd 6.375% /2006 165,000 176,558 0.33Koninklijke KPN unsecur sr unsubord SerEMTN 4.75% /2008 160,000 164,688 0.31


AustraliaAustralia & New Zealand Banking Group deposit nts SerTCD 5% /2008 (AUD) 875,000 499,367 0.94


Marketvalue

% of netassets


specifiedInvestment


Corporate Bonds (continued)CanadaImperial Tobacco Canada unsecur co gtd 5.125% /2006 175,000 181,930 0.34


FrancePinault-Printemps-Redoute unsecur sr nts SerEMTN 5% /2009 175,000 174,370 0.33


MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 160,000 166,240 0.31


Channel IslandsASIF III secur SerEMTN 5.75% /2005 155,000 162,657 0.31

Total for Channel Islands 0.31


Total for Fixed Income Securities 33.29


Total NAV 52,925,352 100.00


Marketvalue

% of netassets


specifiedInvestment





Investment aims

Marketvalue



0

4

8

12

16

20

24

20.63%21.28% 19.41% 23.76%

I

A

B

I A B

Select Global Diversified (USD) Fund

To seek long-term capital appreciation, measured in US dollars,by investing in a globally diversified portfolio of equity and fixedincome securities. The Fund may invest from 30% to 80% of thenet assets in equities and convertible securities and from 20%to 70% of the net assets in fixed income securities as marketconditions dictate.

Equities & WarrantsUnited States of AmericaTravelers Property Casualty 'A' 6,211 104,345 1.06Lockheed Martin 1,983 100,538 1.02Pfizer 2,378 83,396 0.85Loews - Carolina Group 3,298 83,110 0.84Lyondell Chemical 4,779 81,147 0.82Duke Energy 3,902 81,123 0.82Hewlett-Packard 3,446 79,017 0.80General Electric 2,484 76,308 0.78Microsoft 2,768 76,231 0.78Valero Energy 1,606 75,080 0.76Wyeth 1,643 68,940 0.70ChevronTexaco 759 65,320 0.66Oracle 4,721 62,317 0.63Accenture 'A' 2,363 61,958 0.63Mattel 3,052 58,446 0.59Cisco Systems 2,288 55,575 0.57Time Warner 3,012 53,915 0.55Intel 1,562 50,109 0.51Merrill Lynch & Co. 833 48,589 0.50Schlumberger 861 47,820 0.50ConocoPhillips 681 44,524 0.45


United KingdomDiageo 10,594 138,852 1.41Centrica 30,839 115,956 1.18Intercontinental Hotels Group 10,975 103,657 1.05United Utilities 10,865 95,894 0.97Kelda Group 10,098 83,845 0.85Unilever 8,259 76,540 0.78Abbey National 7,227 68,460 0.70GlaxoSmithKline 2,962 67,753 0.69Anglo American (GBP) 1,887 40,575 0.42


JapanMitsubishi 10,000 106,263 1.08NTT DoCoMo 46 104,560 1.06Sankyo 5,100 96,127 0.98Mitsubishi Estate 10,000 95,038 0.97Mitsubishi Tokyo Financial Group 12 93,840 0.95Toyota Motor 2,300 77,882 0.79Nikko Cordial 13,000 72,597 0.74Pioneer 2,000 55,376 0.56


SwitzerlandCredit Suisse Group 2,952 108,012 1.10Roche Holding 'Genußschein' 1,052 106,119 1.08Nestlé Regd 340 84,952 0.86Swiss Reinsurance Regd 1,256 84,803 0.86Alcon 1,026 62,535 0.64


GermanyCelanese 2,471 101,236 1.03Adidas-Salomon 799 90,952 0.92E.ON 1,274 83,095 0.84MAN 2,307 69,942 0.71Metro 1,108 48,816 0.50







50% MSCI World (Net) Index / 50% JPM Global Government (Traded) Index(expressed in US dollars)


Equities & Warrants (continued)FranceTotal 838 154,549 1.57Aventis 1,282 84,037 0.85STMicroelectronics 2,990 80,585 0.82Valeo 1,598 62,971 0.65


CanadaPlacer Dome 5,275 94,317 0.96Barrick Gold 3,152 72,496 0.74


Hong KongSwire Pacific 'A' 13,000 80,211 0.82Henderson Land Development 16,000 70,692 0.71


SingaporeUnited Overseas Bank 9,825 76,353 0.78Singapore Airlines 9,185 60,565 0.61


ItalyENI 6,012 113,378 1.15


SpainAltadis 3,692 103,601 1.05


MexicoTelefonos de Mexico ADR 'L' 2,933 97,200 0.99


PortugalElectricidade de Portugal 30,954 81,163 0.83


AustraliaMacquarie Infrastructure Group 30,407 77,636 0.79


NetherlandsTPG 3,233 75,601 0.77


South KoreaPosco ADR 2,033 68,105 0.69


South AfricaSteinhoff International Holdings 57,090 66,022 0.67



Marketvalue



Fixed Income Securities

Corporate BondsUnited States of AmericaGeneral Electric Capital unsecur sr unsubord SerEMTN 4.5% /2008 (GBP) 160,000 279,618 2.84KFW International Finance unsecur sr unsubord bnk gtd 6.375% /2005 (GBP) 150,000 277,048 2.81Household Finance nts SerEMTN 6.25% /2005 (EUR) 58,000 77,220 0.79KFW International Finance bnk gtd SerINTL 5.25% /2006 60,000 64,129 0.65General Electric Capital unsecur sr unsubord SerDEC 3% /2007 62,000 62,037 0.63General Motors Acceptance unsecur unsubord SerEMTN 6% /2008 (EUR) 35,000 46,387 0.47Goldman Sachs Group nts 4.25% /2010 (EUR) 35,000 43,918 0.45Verizon Global Funding unsecur sr unsubord nts 7.25% /2010 38,000 43,827 0.45Coca-Cola Enterprises sr nts unsecur SerEMTN 5.875% /2007 (EUR) 30,000 40,406 0.41General Electric Capital unsecur sr unsubord SerEMTN 5.125% /2007 (EUR) 30,000 39,936 0.41Citigroup nts 5.75% /2006 32,000 34,337 0.35


NetherlandsBank Nederlandse Gemeenten nts SerEMTN 3% /2005 104,000 106,046 1.08Olivetti Finance unsecur unsubord co gtd SerEMTN 7.25% /2012 (EUR) 30,000 43,600 0.44Deutsche Telekom International Finance unsecur unsubord co gtd 6.375% /2006 (EUR) 30,000 40,467 0.41Koninklijke KPN unsecur sr unsubord SerEMTN 4.75% /2008 (EUR) 30,000 38,926 0.40


AustraliaAustralia & New Zealand Banking Group deposit nts SerTCD 5% /2008 (AUD) 181,000 130,217 1.32


United KingdomRio Tinto Finance unsecur unsubord co gtd SerEMTN 5.125% /2007 (EUR) 30,000 39,807 0.40HBOS Treasury Services bnk gtd SerEMTN 3.375% /2010 (EUR) 32,000 38,659 0.39Vodafone Group unsecur nts 7.75% /2010 30,000 35,531 0.37


FrancePinault-Printemps-Redoute unsecur sr nts SerEMTN 5% /2009 (EUR) 35,000 43,962 0.45


Channel IslandsASIF III secur SerEMTN 5.75% /2005 (EUR) 30,000 39,686 0.40

Total for Channel Islands 0.40

Marketvalue

% of netassets





Corporate Bonds (continued)CanadaImperial Tobacco Canada unsecur co gtd 5.125% /2006 (EUR) 30,000 39,316 0.40


MexicoPemex Project Funding Master Trust co gtd SerRegS 6.625% /2010 (EUR) 30,000 39,293 0.40



Government BondsSupra-NationalInternational Bank for Reconstruction & Development unsecur unsubord 4.75% /2004 (JPY) 27,200,000 265,919 2.70International Bank for Reconstruction & Development nts 5% /2006 101,000 107,394 1.09European Investment Bank 7.625% /2006 (GBP) 45,000 86,690 0.89European Investment Bank nts 6.125% /2005 (GBP) 35,000 64,373 0.65


FranceGovernment of France 3% /2012 (EUR) 92,000 129,538 1.31Government of France 3% /2009 (EUR) 49,000 71,321 0.73Government of France SerTC10 3.38% /2006 (1) (EUR) 50,000 64,032 0.65Government of France OAT 5.5% /2010 (EUR) 43,000 59,130 0.60


GermanyDeutsche Bundesrepublik Ser0303 4.25% /2014 (EUR) 55,000 69,125 0.70Bundesobligation Ser136 5% /2005 (EUR) 49,000 64,219 0.65Deutsche Bundesrepublik Ser98 5.625% /2028 (EUR) 45,000 62,224 0.64


NorwayGovernment of Norway 5.75% /2004 (NOK) 850,000 131,643 1.34


United States of AmericaUS Treasury Notes 4.25% /2013 100,000 99,953 1.02


AustriaRepublic of Austria SerEMTN 5.5% /2007 (EUR) 70,000 95,019 0.97


DenmarkKingdom of Denmark nts 4% /2005 (DKK) 410,000 70,952 0.72


New ZealandGovernment of New Zealand Ser216 4.5% /2016 (NZD) 81,000 66,181 0.67


Marketvalue

% of netassets




Government Bonds (continued)SwedenSwedish Government Ser3105 3.5% /2015 (SEK) 400,000 65,021 0.66


HungaryRepublic of Hungary 4% /2010 (EUR) 50,000 62,135 0.63



Total for Fixed Income Securities 33.34


Total NAV 9,836,107 100.00


Marketvalue

% of netassets





Open forward foreign currency exchange contracts

The accompanying notes are an integral part of these financial statements.

Fund Maturity Date Amount bought Amount soldUnrealized gain/(loss)

As at 31 December 2003

European Equity Fund05 January 2004 2,195,815 EUR 3,400,000 CHF 14,560

qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for European Equity Fund EUR 14,560

Global Brands Fund08 January 2004 75,778,177 USD 44,150,000 GBP (3,021,317)


Total for Global Brands Fund (USD 3,021,317)

World Equity Fund05 January 2004 3,815,000 AUD 302,976,237 JPY 29,48405 January 2004 9,065,000 CAD 8,924,894 CHF (196,520)05 January 2004 2,271,763 EUR 300,000,000 JPY 57,04805 January 2004 2,435,482 GBP 3,470,000 EUR (26,015)05 January 2004 20,853,925 SEK 2,315,000 EUR (21,916)05 January 2004 8,407,324 USD 6,940,000 EUR (340,504)05 January 2004 2,781,409 USD 300,000,000 JPY (25,087)

05 February 2004 5,950,000 AUD 3,541,905 EUR (10,967)05 February 2004 9,650,000 CAD 9,158,410 CHF 51,49605 February 2004 1,664,388 GBP 2,360,000 EUR (8,045)05 February 2004 10,716,057 SEK 1,180,000 EUR (233)05 February 2004 10,744,408 SEK 9,950,000 NOK (3,454)05 February 2004 8,889,887 USD 950,000,000 JPY (6,125)


Total for World Equity Fund (USD 500,838)

Euro Corporate Bond Fund15 January 2004 10,272,674 EUR 12,015,000 USD 738,02216 January 2004 106,546 EUR 75,000 GBP 38316 January 2004 75,000 GBP 107,731 EUR (1,567)


Total for Euro Corporate Bond Fund EUR 736,838

Euro Strategic Bond Fund15 January 2004 2,811,630 EUR 3,275,000 USD 212,71316 January 2004 1,184,533 EUR 825,000 GBP 16,734


Total for Euro Strategic Bond Fund EUR 229,447

European Currencies High Yield Bond Fund22 January 2004 6,246,201 USD 3,767,000 GBP (372,914)26 January 2004 25,770,000 EUR 30,309,893 USD 1,709,791

19 March 2004 272,795 USD 2,000,000 SEK (3,169)qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for European Currencies High Yield Bond Fund EUR 1,333,708


Open forward foreign currency exchange contracts(continued)


Fund Maturity Date Amount bought Amount soldUnrealized gain/(loss)


Global Bond Fund15 January 2004 1,365,919 USD 1,300,000 EUR (272,264)


Total for Global Bond Fund (USD 272,264)

Select Global Convertible Bond (Euro) Fund22 January 2004 19,501,134 EUR 13,685,000 GBP 135,65422 January 2004 3,003,341 EUR 400,000,000 JPY 31,65322 January 2004 118,617,105 EUR 139,325,000 USD 8,032,32926 January 2004 2,243,502 EUR 20,670,000 HKD 128,498


Total for Select Global Convertible Bond (Euro) Fund EUR 8,328,134

Select Global Convertible Bond (USD) Fund08 January 2004 701,635 EUR 859,292 USD 25,04015 January 2004 250,000 EUR 308,580 USD 6,45522 January 2004 18,498,705 USD 15,700,000 EUR (1,281,620)22 January 2004 7,010,817 USD 4,145,000 GBP (379,137)22 January 2004 1,045,947 USD 112,570,000 JPY (7,712)26 January 2004 813,386 USD 6,300,000 HKD 1,310


Total for Select Global Convertible Bond (USD) Fund (USD 1,635,664)

US High Yield Bond Fund26 January 2004 4,214,500 USD 3,555,000 EUR (263,918)

19 March 2004 170,497 USD 1,250,000 SEK (2,492)qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for US High Yield Bond Fund (USD 266,410)

Select Global Diversified (Euro) Fund19 February 2004 8,039,513 EUR 9,492,000 USD 499,753


Total for Select Global Diversified (Euro) Fund EUR 499,753


Open futures contracts


Fund Maturity Date Number of Contracts Notional commitmentsUnrealized gain/(loss)


Emerging Markets Debt FundUS 5yr T-note Future March 2004 (831) (708,856)US 10yr T-note Future March 2004 (107) (90,398)qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for Emerging Markets Debt Fund (USD 104,746,828)* (USD 799,254)

* Cash USD 2,411,109 held as collateral.

Euro Corporate Bond FundEUX Euro-BOBL Future March 2004 (29) (40,310)EUX Euro Bond Future March 2004 (23) (31,740)US 5yr T-note Future March 2004 (12) (4,685)US 10yr T-note Future March 2004 (6) (1,673)US Long Bond Future March 2004 (69) 2,993qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for Euro Corporate Bond Fund (EUR 13,387,077)** (EUR 75,415)

** Cash EUR 641,577 held as collateral.

Euro Strategic Bond FundLIF Long Gilt Future March 2004 (4) (11,729)US 10yr T-note Future March 2004 (17) (2,900)US Long Bond Future March 2004 (8) 347qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for Euro Strategic Bond Fund (EUR 2,823,476)*** (EUR 14,282)

*** Cash EUR 309,848 held as collateral.

Global Bond FundUS 5yr T-note Future March 2004 (190) (87,047)US 10yr T-note Future March 2004 (30) (10,547)qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for Global Bond Fund (USD 24,570,781)**** (USD 97,594)

**** Cash USD 1,078,525 held as collateral.

US Bond FundEuro / Dollars Future March 2004 (13) (61,855)US 2yr T-note Future March 2004 80 64,938US 5yr T-note Future March 2004 (569) (423,873)US 10yr T-note Future March 2004 296 215,126US Long Bond Future March 2004 170 114,197qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for US Bond Fund (USD 135,646,106)***** (USD 91,467)

***** 100,000 US Treasury Bill 15/01/2004 held as collateral.***** 830,000 US Treasury Bill 25/03/2004 held as collateral.***** Cash USD 1,169,845 held as collateral


Open futures contracts (continued)


Fund Maturity Date Number of Contracts Notional commitmentsUnrealized gain/(loss)


US Dollar Short Duration FundUS 2yr T-note Future March 2004 (178) (192,266)US 5yr T-note Future March 2004 (50) (69,832)US 10yr T-note Future March 2004 (200) (214,828)US Long Bond Future March 2004 (4) (396)qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for US Dollar Short Duration Fund (USD 66,573,188)****** (USD 477,322)

****** 800,000 US Treasury Bill 15/01/2004 held as collateral.****** Cash USD 494,979 held as collateral.

US High Yield Bond FundUS 5yr T-note Future March 2004 (75) (45,743)qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq qqqqqqqqqqqqqqqqqq

Total for US High Yield Bond Fund (USD 8,369,531)******* (USD 45,743)

******* 200,000 US Treasury Bill 15/01/2004 held as collateral.******* 200,000 US Treasury Bill 25/03/2004 held as collateral.******* Cash USD 215,812 held as collateral.



Combinedtotals of all

funds +

Statement of assets and liabilitiesAs at 31 December 2003

AssetsInvestment securities - at costUnrealized appreciation / (depreciation)

Investment securities at market value

Unrealized gain on open forward foreign exchange contractsCash at banksTime depositsReceivables for investments soldReceivables for subscriptionsAccrued income and prepaid expenses

Total assets

LiabilitiesUnrealized loss on open futures contractsUnrealized loss on open forward foreign exchange contractsBank overdraftsDistribution payablePayables for investments purchasedPayables for redemptionsOther payables and accrued expenses

Total liabilities

Net asset value

(1) Fund renamed on 2 May 2003 (formerly known as Emerging Europe Fund). + Represents the combined totals of all Morgan Stanley SICAV Funds.

Competitive Emerging Emerging Europe Asian Asian Edge Europe and Markets ex UK European

Equity Property "Best Ideas" Middle East Equity Property EquityFund Fund Fund Equity Fund (1) Fund Fund Fund

USD USD USD EUR USD EUR EUR USD

211,876,106 5,577,714 47,777,727 15,347,120 289,891,753 16,084,201 220,618,454 62,749,362 899,210 2,186,823 2,420,018 95,679,391 1,531,121 1,629,089

274,625,468 6,476,924 49,964,550 17,767,138 385,571,144 17,615,322 222,247,543

- - - - - - 14,560 6,682,983 120,458 194,716 691,567 14,801,824 1,132,764 1,654,063

- - - - - - - 51,433 32,497 208,303 - 463,816 10,319 -

1,055,798 297 - 183,615 4,872,305 330,632 159,770 417,858 65,569 89,257 88,835 1,530,183 31,875 385,564

282,833,540 6,695,745 50,456,826 18,731,155 407,239,272 19,120,912 224,461,500

- - - - - - -

- - - - - - - - - 20 111,893 - - - - - - - - - -

494,938 - - - 960,379 - - 571,298 8,232 198,866 12,906 1,319,277 369,517 493,612 427,531 53,117 126,541 79,132 1,199,395 49,650 379,353

1,493,767 61,349 325,427 203,931 3,479,051 419,167 872,965

281,339,773 6,634,396 50,131,399 18,527,224 403,760,221 18,701,745 223,588,535

10,558,036,538 692,300,676

11,250,337,214

14,046,161 479,942,466363,982,34232,005,103 51,910,697 81,328,290

12,273,552,273

1,624,452

5,696,493 3,746,895

6,254 273,030,69322,925,818 18,987,585

326,018,190

11,947,534,083


Statement of assets and liabilities (continued)As at 31 December 2003




Total assets


Total liabilities

Net asset value

+ Represents the combined totals of all Morgan Stanley SICAV Funds.

European European Global Equity European Small Cap European Global Small Cap Global

Growth Property Value Value Equity Brands Value TechnologyFund Fund Fund Fund Fund Fund Fund

EUR EUR EUR EUR USD USD USD USD



funds +

359,528,886 98,621,174 24,425,386 483,641,631 433,165,392 124,167,165 40,816,755 4,710,257 9,591,195 488,951 (132,624) 100,803,547 17,205,582 6,368,013

364,239,143 108,212,369 24,914,337 483,509,007 533,968,939 141,372,747 47,184,768

- - - - - - - 5,970,509 8,641,365 615,787 25,089,197 24,098,889 4,356,163 658,780

- - - - - - - - 110,429 - - - 4,274 -

2,479,863 529,630 24,005 2,151,071 6,127,904 171,641 1,178,560 615,037 112,647 60,736 707,804 1,014,582 199,386 42,794

373,304,552 117,606,440 25,614,865 511,457,079 565,210,314 146,104,211 49,064,902

- - - - - - -

- - - - 3,021,317 - - - - - - - - - - - - - - - - - 57,282 - - - 36,081 726,393

498,795 1,254,072 51,437 634,736 366,993 111,053 90,589 619,922 193,084 86,691 854,261 870,943 265,949 122,004

1,118,717 1,504,438 138,128 1,488,997 4,259,253 413,083 938,986

372,185,835 116,102,002 25,476,737 509,968,082 560,951,061 145,691,128 48,125,916

10,558,036,538 692,300,676

11,250,337,214

14,046,161 479,942,466363,982,34232,005,103 51,910,697 81,328,290

12,273,552,273

1,624,452

5,696,493 3,746,895

6,254 273,030,69322,925,818 18,987,585

326,018,190

11,947,534,083




funds +





Total assets


Total liabilities

Net asset value

(1) Fund renamed on 3 November 2003 (formerly known as Japanese Growth Opportunities Fund).+ Represents the combined totals of all Morgan Stanley SICAV Funds.

Japanese Latin USGlobal Equity Japanese American US Equity US

Value Equity Growth Value Equity Equity Equity Growth PropertyFund Fund (1) Fund Fund Fund Fund Fund

USD JPY JPY USD USD USD USD USD

992,561,023 4,192,102,542 38,416,502,181 158,255,595 45,530,485 619,210,949 62,738,195 84,349,140 264,531,458 89,993,519 38,631,039 5,600,377 72,818,473 15,962,360

1,076,910,163 4,456,634,000 38,506,495,700 196,886,634 51,130,862 692,029,422 78,700,555

- - - - - - - 48,444,362 67,223,707 870,524,890 9,712,669 3,182,581 2,193,341 2,456,221

- - - - - - - - 2,441,028 - 525,460 - 9,111,032 164,812

2,336,449 19,279,385 323,839,638 754,470 300,012 1,326,250 1,199,662 1,467,490 6,122,585 10,486,043 1,086,270 83,066 364,648 463,853

1,129,158,464 4,551,700,705 39,711,346,271 208,965,503 54,696,521 705,024,693 82,985,103

- - - - - - -

- - - - - - - - - - - - - - - - - - - - - - 2,383,050 - 7,906,667 - 8,427,056 -

1,216,236 13,838,474 167,606,343 222,831 50,499 1,533,794 765,447 1,521,273 12,816,369 62,704,280 297,350 117,746 1,080,705 1,769,235

2,737,509 29,037,893 230,310,623 8,426,848 168,245 11,041,555 2,534,682

1,126,420,955 4,522,662,812 39,481,035,648 200,538,655 54,528,276 693,983,138 80,450,421

10,558,036,538 692,300,676

11,250,337,214

14,046,161 479,942,466363,982,34232,005,103 51,910,697 81,328,290

12,273,552,273

1,624,452

5,696,493 3,746,895

6,254 273,030,69322,925,818 18,987,585

326,018,190

11,947,534,083






Total assets


Total liabilities

Net asset value

(1) Fund renamed on 1 August 2003 (formerly known as US Small Cap Value Fund).(2) Fund renamed on 3 February 2003 (formerly known as US Growth and Income Fund).+ Represents the combined totals of all Morgan Stanley SICAV Funds.

US US Emerging EuroSmall Cap Small Cap US World Markets Euro Corporate

Equity Growth Value Equity Equity Debt Bond BondFund (1) Fund Fund (2) Fund Fund Fund Fund

USD USD USD USD USD EUR EUR USD



funds +

66,415,688 169,775,010 285,951,073 254,220,756 223,216,452 663,303,468 210,568,717 5,710,282 29,460,301 24,195,152 39,147,665 16,138,969 10,112,974 3,078,566

72,125,970 199,235,311 310,146,225 293,368,421 239,355,421 673,416,442 213,647,283

- - - - - - 736,838 1,090,306 1,713,903 6,017,397 4,741,031 7,346,330 332,757 1,112,182

- - - - - 18,349,618 24,437,60119,597 649,121 1,240,593 2,480,135 - - -

371,023 1,152,772 3,526,527 149,524 916,561 2,104,449 721,464 42,389 33,073 512,309 288,159 5,257,382 15,994,741 5,645,856

73,649,285 202,784,180 321,443,051 301,027,270 252,875,694 710,198,007 246,301,224

- - - - 799,254 - 75,415

- - - 500,838 - - - - - - 17,604 - - 302,154 - - - - - - -

44,261 354,726 1,726,234 2,951,533 - - 8,217,75030,650 712,973 400,545 505,283 650,206 1,195,905 285,463

158,998 374,225 530,013 461,847 434,069 822,996 270,265

233,909 1,441,924 2,656,792 4,437,105 1,883,529 2,018,901 9,151,047

73,415,376 201,342,256 318,786,259 296,590,165 250,992,165 708,179,106 237,150,177

10,558,036,538 692,300,676

11,250,337,214

14,046,161 479,942,466363,982,34232,005,103 51,910,697 81,328,290

12,273,552,273

1,624,452

5,696,493 3,746,895

6,254 273,030,69322,925,818 18,987,585

326,018,190

11,947,534,083

The accompanying notes are an integral part of these financial statements.The accompanying notes are an integral part of these financial statements.



funds +





Total assets


Total liabilities

Net asset value


Euro European Select Global Select GlobalStrategic Currencies High Global Convertible Convertible Short Maturity

Bond Yield Bond Bond Bond Bond Euro Bond US BondFund Fund Fund (Euro) Fund (USD) Fund Fund Fund

EUR EUR USD EUR USD EUR USD USD

196,929,886 83,962,589 259,022,986 200,222,063 72,200,068 660,581,161 304,596,584 2,721,840 (9,284,448) 30,047,551 (2,673,725) 4,899,790 3,605,747 6,820,393

199,651,726 74,678,141 289,070,537 197,548,338 77,099,858 664,186,908 311,416,977

229,447 1,333,708 - 8,328,134 - - - 1,010,731 3,580,341 20,521,089 1,759,142 24,281,522 184,706 183,078,418

11,674,763 - - - - 25,765,565 - - - - 2,516,591 - - 12,344,621

166,003 257,545 420,532 2,951,527 4,454,367 403,524 755,587 4,646,372 1,948,139 4,809,678 1,291,121 498,500 13,542,348 1,903,096

217,379,042 81,797,874 314,821,836 214,394,853 106,334,247 704,083,051 509,498,699

14,282 - 97,594 - - - 91,467

- - 272,264 - 1,635,664 - - 550,015 364,850 - 1,629,320 7 - -

- - - - - - - 5,437,720 - - 3,155,723 3,659,999 9,403,200 161,164,887

486,247 184,781 510,046 174,868 - 1,603,873 559,374 261,370 118,194 367,752 220,487 104,728 773,621 440,108

6,749,634 667,825 1,247,656 5,180,398 5,400,398 11,780,694 162,255,836

210,629,408 81,130,049 313,574,180 209,214,455 100,933,849 692,302,357 347,242,863

10,558,036,538 692,300,676

11,250,337,214

14,046,161 479,942,466363,982,34232,005,103 51,910,697 81,328,290

12,273,552,273

1,624,452

5,696,493 3,746,895

6,254 273,030,69322,925,818 18,987,585

326,018,190

11,947,534,083






Total assets


Total liabilities

Net asset value


US Dollar Select Global Select GlobalShort US High Euro Sterling US Dollar Diversified Diversified

Duration Yield Bond Liquidity Liquidity Liquidity (Euro) (USD)Fund Fund Fund Fund Fund Fund Fund

USD USD EUR GBP USD EUR USD USD



funds +

171,680,836 109,313,384 524,725,488 10,479,791 391,213,976 44,439,517 7,520,754 137,503 (7,769,022) - - - 658,167 1,069,455

171,818,339 101,544,362 524,725,488 10,479,791 391,213,976 45,097,684 8,590,209

- - - - - 499,753 - 29,511,595 580,919 - - 86,117 6,832,464 1,418,345

- - 170,355,599 2,182,516 44,200,000 - - - 54 - - - - 1,361,892

270,018 992,420 - - - 521,550 - 672,548 2,190,135 381,238 26,205 359,295 271,068 95,721

202,272,500 105,307,890 695,462,325 12,688,512 435,859,388 53,222,519 11,466,167

477,322 45,743 - - - - -

- 266,410 - - - - - - - 9 59 - - - - - 56 6 6,173 - -

51,437,172 - - - - - - 120,238 325,215 - - - 202,003 1,569,700 130,527 168,096 422,068 30,653 530,477 95,164 60,360

52,165,259 805,464 422,133 30,718 536,650 297,167 1,630,060

150,107,241 104,502,426 695,040,192 12,657,794 435,322,738 52,925,352 9,836,107

10,558,036,538 692,300,676

11,250,337,214

14,046,161 479,942,466363,982,34232,005,103 51,910,697 81,328,290

12,273,552,273

1,624,452

5,696,493 3,746,895

6,254 273,030,69322,925,818 18,987,585

326,018,190

11,947,534,083



Statement of changes in number of sharesFor the year ended 31 December 2003

Shares at the start of the yearNumber of shares issuedNumber of shares redeemed

Shares at the end of the year

Net asset value per share class I



Net asset value per share class A



Net asset value per share class B



Net asset value per share class IX



Net asset value per share class AX



Net asset value per share class BX



Net asset value per share class M



Net asset value per share class MX

(1) Fund renamed on 2 May 2003 (formerly known as Emerging Europe Fund).

Competitive Emerging Emerging Europe Asian Asian Edge Europe and Markets ex UK

Equity Property "Best Ideas" Middle East Equity PropertyFund Fund Fund Equity Fund (1) Fund Fund

USD USD USD EUR USD EUR

6,867,230 58,807 820,061 86,758 10,765,914 389,4314,654,443 306,858 176,491 240,753 6,092,516 406,107

(3,582,382) (101,351) (858,024) (239,094) (6,306,273) (384,672)

7,939,291 264,314 138,528 88,417 10,552,157 410,866

19.68 8.38 6.75 24.00 15.78 31.91

4,453,361 531,408 7,265,991 177,621 15,035,760 219,82430,683,388 347,077 1,137,290 825,967 30,781,095 354,377

(29,139,919) (367,398) (3,051,738) (458,398) (31,878,362) (413,178)

5,996,830 511,087 5,351,543 545,190 13,938,493 161,023

18.94 8.07 6.58 23.57 15.17 31.56

476,826 35,479 3,009,615 72,966 1,053,029 2,124377,751 186,049 89,598 343,840 4,883,749 102,804

(206,361) (183,953) (884,520) (264,285) (4,146,407) (88,484)

648,216 37,575 2,214,693 152,521 1,790,371 16,444

17.72 7.91 6.32 23.31 14.42 30.95

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -


Statement of changes in number of shares (continued)For the year ended 31 December 2003

























(1) Fund closed and merged into the European Small Cap Value Fund on 2 May 2003.

European European European European Equity Growth European Small Cap European

Equity Growth Opportunities Property Value Value EquityFund Fund Fund (1) Fund Fund Fund

EUR EUR EUR EUR EUR EUR


12,934,058 8,627,148 4,528 3,803,006 866,436 8,194,5472,286,893 6,108,455 - 838,216 294,572 1,829,610

(8,025,525) (8,484,843) (4,528) (2,418,585) (867,364) (7,244,684)

7,195,426 6,250,760 - 2,222,637 293,644 2,779,473

6.31 8.99 - 16.17 25.61 23.29

59,855,555 46,812,839 247,754 4,710,962 652,595 20,031,65415,444,423 70,526,933 202,845 3,571,133 988,539 31,826,600

(47,642,024) (84,708,785) (450,599) (3,685,332) (978,522) (33,170,692)

27,657,954 32,630,987 - 4,596,763 662,612 18,687,562

6.17 8.76 - 15.59 25.31 22.37

1,668,549 4,568,459 38,056 495,294 10,969 1,557,650636,371 2,995,694 1,107 274,825 78,470 530,251

(1,034,176) (3,958,376) (39,163) (194,720) (41,521) (792,937)

1,270,744 3,605,777 - 575,399 47,918 1,294,964

5.96 8.35 - 14.79 24.76 20.98

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -




























(1) Fund renamed on 3 November 2003 (formerly known as Japanese Growth Opportunities Fund).

Global JapaneseGlobal Small Cap Global Global Equity Japanese

Brands Value Technology Value Equity Growth Value EquityFund Fund Fund Fund Fund (1) Fund

USD USD USD USD JPY JPY

4,827,748 796,098 1,108,398 14,440,035 1,085,621 10,203,9062,579,822 2,607,112 3,319,932 3,836,762 615,281 21,804,719

(3,766,664) (688,111) (2,183,252) (4,468,989) (669,366) (17,448,141)

3,640,906 2,715,099 2,245,078 13,807,808 1,031,536 14,560,484

37.59 23.58 3.02 35.53 674.27 841.19

4,864,641 3,015,338 10,150,042 22,535,950 3,320,333 27,561,7049,037,299 4,816,493 18,285,185 11,637,918 11,617,893 103,958,602

(4,904,851) (4,748,161) (17,786,136) (17,037,503) (10,334,363) (103,185,610)

8,997,089 3,083,670 10,649,091 17,136,365 4,603,863 28,334,696

36.93 22.69 2.96 34.16 660.92 808.76

2,360,006 539,299 2,435,875 1,313,942 1,041,166 6,597,2641,129,283 131,228 5,272,018 1,092,309 728,166 974,171(922,474) (129,726) (4,282,548) (834,037) (555,299) (1,821,374)

2,566,815 540,801 3,425,345 1,572,214 1,214,033 5,750,061

35.79 21.67 2.88 32.01 646.06 750.76

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -



























(1) Fund renamed on 1 August 2003 (formerly known as US Small Cap Value Fund).

Latin US US USAmerican US Equity US Small Cap Small Cap

Equity Equity Growth Property Equity GrowthFund Fund Fund Fund Fund (1) Fund

USD USD USD USD USD USD


8,014,701 420,781 4,076,641 2,236,258 671,776 1,253,2468,396,759 89,339 2,529,972 1,267,893 144,228 1,312,333

(8,152,107) (472,691) (3,738,983) (1,886,436) (184,735) (589,512)

8,259,353 37,429 2,867,630 1,617,715 631,269 1,976,067

17.40 23.43 27.72 27.12 26.52 33.76

2,827,102 1,039,493 26,993,350 1,230,607 3,108,294 2,770,6635,592,349 2,760,704 18,466,124 1,200,745 1,943,426 4,197,662

(5,463,734) (1,552,245) (23,741,968) (1,321,100) (3,080,604) (3,341,264)

2,955,717 2,247,952 21,717,506 1,110,252 1,971,116 3,627,061

16.73 23.21 26.66 26.19 25.47 32.47

325,257 10,139 1,122,248 250,262 308,743 522,014658,429 87,422 614,784 348,929 140,089 245,350

(510,452) (32,391) (320,293) (293,080) (178,346) (212,943)

473,234 65,170 1,416,739 306,111 270,486 554,421

15.62 22.72 25.04 24.49 23.95 30.41

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -




























(1) Fund renamed on 3 February 2003 (formerly known as US Growth and Income Fund).

Emerging Euro EuroUS World Markets Euro Corporate Strategic

Value Equity Equity Debt Bond Bond BondFund (1) Fund Fund Fund Fund Fund

USD USD USD EUR EUR EUR

5,511,889 5,139,585 2,695,254 14,996,898 1,776,222 754,5312,462,297 1,024,679 1,024,050 4,237,560 1,675,941 1,339,004

(4,987,263) (2,247,285) (1,887,887) (9,331,955) (933,671) (464,955)

2,986,923 3,916,979 1,831,417 9,902,503 2,518,492 1,628,580

17.56 20.31 40.37 9.94 28.81 27.14

16,025,019 6,914,416 5,013,146 51,745,810 777,135 5,398,99518,955,763 20,863,015 3,561,907 70,778,592 7,262,525 5,317,641

(21,214,643) (17,032,608) (4,300,916) (60,736,744) (2,399,044) (4,950,049)

13,766,139 10,744,823 4,274,137 61,787,658 5,640,616 5,766,587

16.89 19.92 38.74 9.66 28.50 26.36

1,687,454 103,810 239,258 1,965,784 35,204 670,0661,364,528 231,450 205,774 1,866,624 161,662 319,780(920,671) (181,466) (128,928) (2,398,674) (59,649) (406,804)

2,131,311 153,794 316,104 1,433,734 137,217 583,042

15.85 19.27 36.31 9.10 27.86 24.75

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -



























European Select Global Select GlobalCurrencies High Global Convertible Convertible Short Maturity

Yield Bond Bond Bond Bond Euro Bond US BondFund Fund (Euro) Fund (USD) Fund Fund Fund

EUR USD EUR USD EUR USD


1,252,426 4,322,688 1,019,634 353,891 8,126,199 4,603,1623,398,434 3,157,969 4,696,203 2,339,073 5,142,696 6,734,720

(1,806,551) (4,331,856) (887,464) (131,144) (607,930) (8,201,492)

2,844,309 3,148,801 4,828,373 2,561,820 12,660,965 3,136,390

10.08 27.32 27.52 28.32 16.76 19.82

3,413,557 8,141,969 395,689 123,265 30,494,751 15,659,5533,629,073 10,217,424 3,182,325 939,508 37,492,307 35,230,165

(2,818,433) (10,011,421) (988,999) (77,033) (40,833,747) (37,034,690)

4,224,197 8,347,972 2,589,015 985,740 27,153,311 13,855,028

9.83 26.53 27.33 28.15 16.26 19.25

866,703 373,801 9,653 1,255 2,179,444 1,033,1081,361,230 62,999 206,110 22,988 2,742,088 1,277,903

(1,049,354) (190,546) (8,104) (999) (2,410,834) (1,291,526)

1,178,579 246,254 207,659 23,244 2,510,698 1,019,485

9.29 24.78 26.94 27.75 15.44 18.07

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - -




























Select Global Select GlobalUS Dollar US High Euro Sterling US Dollar Diversified Diversified

Short Duration Yield Bond Liquidity Liquidity Liquidity (Euro) (USD)Fund Fund Fund Fund Fund Fund Fund

USD USD EUR GBP USD EUR USD

5,391,829 4,492,284 32,831,783 484,056 13,110,336 500,977 118,795 25,649,356 1,214,618 40,562,122 2,023,400 16,509,373 929,174 186,488

(17,553,446) (3,554,879) (36,564,543) (1,657,446) (20,260,671) (384,103) (179,566)

13,487,739 2,152,023 36,829,362 850,010 9,359,038 1,046,048 125,717

10.17 20.15 11.38 10.83 11.55 24.96 28.84

610,626 2,541,887 19,830,223 160,564 1,125,346 154,680 215,763 1,620,293 9,603,633 30,122,079 319,834 5,213,511 885,874 55,598

(1,231,936) (9,308,730) (29,022,437) (164,698) (4,331,642) (75,738) (67,891)

998,983 2,836,790 20,929,865 315,700 2,007,215 964,816 203,470

10.11 19.59 11.26 10.80 11.32 24.68 28.54

38,803 431,127 1,678,914 250 621,640 5,271 406 810,822 327,508 1,985,343 4,404 1,116,580 128,734 14,353

(566,496) (454,001) (1,049,839) (2,541) (1,494,381) (8,408) (406)

283,129 304,634 2,614,418 2,113 243,839 125,597 14,353

9.97 18.22 10.86 10.61 10.98 23.91 28.12

- 830 267,319 6,202 25,251,187 - - - 65 90,850 1,585 6,553,305 - - - (895) (36,999) (5,623) (23,899,066) - -

- - 321,170 2,164 7,905,426 - -

- - 1.00 10.00 1.00 - -

- 229,766 509,655 - 588,959,380 - - - 1,644,362 6,502 - 1,227,893,975 - - - (1,874,128) (222,772) - (1,560,140,475) - -

- - 293,385 - 256,712,880 - -

- - 1.00 - 1.00 - -

- 141,406 - - 13,949,729 - - - 45,867 - - 68,627,445 - - - (187,273) - - (81,354,989) - -

- - - - 1,222,185 - -

- - - - 1.00 - -

- - 1,907,997 2,221,892 6,549,679 - - - - 10,374,188 346,541 25,567,577 - - - - (11,307,269) (2,568,433) (32,117,256) - -

- - 974,916 - - - -

- - 11.44 - - - -

- - 1,036 1,146 212,464,653 - - - - 625,000,014 22 170,535,637 - - - - (625,001,050) (1,168) (346,986,584) - -

- - - - 36,013,706 - -

- - - - 1.00 - -


Statement of operations and changes in net assetsFor the year ended 31 December 2003


funds +


IncomeDividends (net of withholding taxes)Interest on bondsBank interestIncome from securities lending

Total income

ExpensesInvestment advisory feesCustodian feesAdministration fees and transfer agent feesProfessional feesTaxe d'abonnementPrinting and publication feesBank interestTransaction feesClass specific expenses- Class I- Class A- Class B- Class IX- Class AX- Class BXTax charges (excluding Taxe d'abonnement)Other fees

Total expenses

Less: expenses fee waiver

Net investment income/(loss)

Net realized gain/(loss) on sales of investmentsNet realized gain/(loss) on financial futures contractsNet realized gain/(loss) on foreign exchange transactions

Net realized profit/(loss) for the year

Net change in unrealized appreciation/(depreciation) on investmentsNet change in unrealized appreciation/(depreciation) on financial futures contractsNet change in unrealized appreciation/(depreciation) on foreign exchange transactions

Net change in net assets as a result of operations

Dividend distribution

Proceeds received on subscription of sharesNet amount paid on redemption of shares

Net change in net assets as a result of capital transactions

Total increase/(decrease) in net assets

Net assets at beginning of year

Translation difference

Net assets at end of year

(1) Fund renamed on 2 May 2003 (formerly known as Emerging Europe Fund).+ Represents the combined totals of all Morgan Stanley SICAV Funds.

Competitive Emerging Emerging EuropeAsian Asian Edge Europe and Markets ex UK

Equity Property “Best Ideas” Middle East Equity PropertyFund Fund Fund Equity Fund (1) Fund Fund

USD USD USD EUR USD EUR USD

7,174,167 148,389 746,103 349,675 11,566,665 544,368 - - - - - -

4,890 - - - 94,967 2,262 189,885 - - - 268,096 50,567

7,368,942 148,389 746,103 349,675 11,929,728 597,197

1,860,201 52,765 664,151 150,713 3,925,148 142,656 160,608 1,361 5,380 12,692 225,325 5,099 251,890 72,541 155,726 69,420 421,677 67,873 87,919 17,488 32,619 16,264 115,406 17,058

100,822 2,389 26,374 5,130 141,626 7,723 92,446 53,610 65,232 45,878 108,732 73,393

- 11,558 12,565 5,445 - - 324,914 23,858 4,343 49,291 316,290 37,980

94,700 634 1,422 1,355 86,622 6,924 105,589 5,134 55,814 9,160 232,188 8,395 85,094 3,715 170,846 24,705 185,034 7,164

- - - - - - - - - - - - - - - - - - - - - - 453,528 -

4,650 4,650 4,701 4,192 4,650 4,192

3,168,833 249,703 1,199,173 394,245 6,216,226 378,457

- 124,505 - 132,829 36,738 123,842

4,200,109 23,191 (453,070) 88,259 5,750,240 342,582

4,608,873 (60,213) (4,986,933) 891,463 8,358,076 344,721

- - - - - -

(197,355) 1,371 21,832 (54,414) (205,321) (2,664)

8,611,627 (35,651) (5,418,171) 925,308 13,902,995 684,639

76,907,732 1,535,309 15,565,811 2,625,629 114,503,155 1,579,104

- - - - - -

- - - - - -

85,519,359 1,499,658 10,147,640 3,550,937 128,406,150 2,263,743

- - - - - -

509,618,329 5,913,548 7,705,982 28,901,992 455,879,896 24,379,062 (466,692,548) (4,374,473) (27,032,030) (19,348,652) (448,204,865) (24,337,523)

42,925,781 1,539,075 (19,326,048) 9,553,340 7,675,031 41,539

128,445,140 3,038,733 (9,178,408) 13,104,277 136,081,181 2,305,282

152,894,633 3,595,663 59,309,807 5,422,947 267,679,040 16,396,463

- - - - - -

281,339,773 6,634,396 50,131,399 18,527,224 403,760,221 18,701,745

118,969,252 174,380,60611,267,3156,578,031

311,195,204

92,466,502 1,868,892

13,208,230 4,114,612 4,618,928 4,194,358

85,546 2,758,143

2,336,181 8,688,806 6,224,843

7,778 189,613 74,531

818,953 231,472

141,887,388

2,473,860

171,781,676

(348,248,280)

(8,557,846)

(2,312,637)

(187,337,087)

1,663,154,271

2,097,931

8,420,207

1,486,335,322

(7,151,024)

38,222,397,956 (38,935,217,369)

(712,819,413)

766,364,885

10,275,570,295

905,598,903

11,947,534,083



funds +

Statement of operations and changes in net assets (continued)For the year ended 31 December 2003



Total income


Total expenses














(1) Fund closed and merged into the European Small Cap Value Fund on 2 May 2003.+ Represents the combined totals of all Morgan Stanley Witter SICAV Funds.

European European EuropeanEuropean Equity Growth European Small Cap European

Equity Growth Opportunities Property Value Value EquityFund Fund Fund (1) Fund Fund Fund

EUR EUR EUR EUR EUR EUR USD

7,809,363 10,142,634 36,250 2,387,101 870,930 12,629,312 - - - - - -

59,724 125,949 - 15,533 1,548 108,999 424,340 447,991 - 118,557 - 690,095

8,293,427 10,716,574 36,250 2,521,191 872,478 13,428,406

3,288,252 5,142,869 18,586 928,001 426,274 5,580,620 83,023 117,839 846 22,333 11,732 141,506

347,866 574,051 16,658 147,873 105,177 627,055 101,678 144,689 7,522 39,464 15,444 167,615 133,197 204,230 633 44,859 15,560 229,911 107,168 136,751 12,217 61,854 16,435 145,811

- - 1,259 - - - 189,129 109,356 22,440 49,595 30,956 181,482

44,267 50,467 15 27,164 10,578 81,878 351,787 512,608 1,687 71,012 29,970 535,969 83,020 366,192 1,671 75,050 8,684 318,909

- - - - - - - - - - - - - - - - - - - - - - - -

4,192 4,192 2,007 4,192 9,193 4,192

4,733,579 7,363,244 85,541 1,471,397 680,003 8,014,948

- - 53,939 - 13,126 -

3,559,848 3,353,330 4,648 1,049,794 205,601 5,413,458

(85,794,296) (95,252,729) (836,009) (6,345,055) (2,885,961) (89,156,884)

- - - - - -

(245,106) (569,317) (4,592) (57,646) (20,165) (534,965)

(82,479,554) (92,468,716) (835,953) (5,352,907) (2,700,525) (84,278,391)

85,405,330 126,862,017 789,907 17,029,159 9,543,673 105,196,406

- - - - - -

14,560 - - - - -

2,940,336 34,393,301 (46,046) 11,676,252 6,843,148 20,918,015

- - - - - -

101,639,965 614,518,863 2,311,721 66,762,788 30,255,939 681,309,278 (313,343,870) (767,168,974) (5,871,799) (83,163,071) (43,692,051) (815,504,004)

(211,703,905) (152,650,111) (3,560,078) (16,400,283) (13,436,112) (134,194,726)

(208,763,569) (118,256,810) (3,606,124) (4,724,031) (6,592,964) (113,276,711)

432,352,104 490,442,645 3,606,124 120,826,033 32,069,701 623,244,793

- - - - - -

223,588,535 372,185,835 - 116,102,002 25,476,737 509,968,082

118,969,252 174,380,60611,267,3156,578,031

311,195,204

92,466,502 1,868,892

13,208,230 4,114,612 4,618,928 4,194,358

85,546 2,758,143

2,336,181 8,688,806 6,224,843

7,778 189,613 74,531

818,953 231,472

141,887,388

2,473,860

171,781,676

(348,248,280)

(8,557,846)

(2,312,637)

(187,337,087)

1,663,154,271

2,097,931

8,420,207

1,486,335,322

(7,151,024)

38,222,397,956 (38,935,217,369)

(712,819,413)

766,364,885

10,275,570,295

905,598,903

11,947,534,083





Total income


Total expenses














(1) Fund renamed on 3 November 2003 (formerly known as Japanese Growth Opportunities Fund).+ Represents the combined totals of all Morgan Stanley SICAV Funds.

Global JapaneseGlobal Small Cap Global Global Equity Japanese

Brands Value Technology Value Equity Growth Value EquityFund Fund Fund Fund Fund (1) Fund

USD USD USD USD JPY JPY USD


funds +

9,859,711 1,446,164 85,989 19,551,702 24,811,580 344,160,899 - - - - - -

100,899 12,931 - 390,792 - - 446 - - 1,613,696 - 16,665,580

9,961,056 1,459,095 85,989 21,556,190 24,811,580 360,826,479

4,292,281 1,196,742 541,304 9,888,069 40,920,960 352,148,798 87,826 16,492 1,977 146,194 460,703 4,982,151

503,407 190,630 153,643 1,026,484 12,586,504 44,138,068 144,858 46,332 28,915 319,287 4,084,531 28,868,941 220,824 47,829 19,788 472,941 1,640,532 16,301,741 133,774 71,137 61,948 246,308 6,728,492 12,460,974

- - 4,263 - 1,847,285 2,633,417 15,212 196,417 29,591 87,375 14,064,626 15,983,962

92,577 21,091 3,521 314,935 454,257 6,975,943 305,760 83,969 41,124 768,148 2,760,458 28,445,088 806,281 106,744 80,865 491,635 7,020,282 45,732,197

- - - - - - - - - - - - - - - - - - - - - - - -

4,701 4,650 4,702 4,767 556,922 550,501

6,607,501 1,982,033 971,641 13,766,143 93,125,552 559,221,781

- 21,372 42,617 - 20,218,366 -

3,353,555 (501,566) (843,035) 7,790,047 (48,095,606) (198,395,302)

2,622,555 13,562,099 (3,209,075) (82,436,039) (538,486,389) (6,547,696,781)

- - - - - -

(6,582,275) 61,939 (32,375) (2,087,788) 31,874 (19,216,132)

(606,165) 13,122,472 (4,084,485) (76,733,780) (586,550,121) (6,765,308,215)

103,090,141 23,060,801 19,183,897 312,870,422 1,144,539,317 13,061,462,686

- - - - - -

(1,730,302) - - 848,308 - -

100,753,674 36,183,273 15,099,412 236,984,950 557,989,196 6,296,154,471

- - - - - -

395,593,597 140,784,269 66,131,328 461,359,628 7,570,200,156 91,796,522,363 (287,233,781) (99,619,871) (60,470,468) (603,590,416) (6,501,330,347) (88,648,860,258)

108,359,816 41,164,398 5,660,860 (142,230,788) 1,068,869,809 3,147,662,105

209,113,490 77,347,671 20,760,272 94,754,162 1,626,859,005 9,443,816,576

351,837,571 68,343,457 27,365,644 1,031,666,793 2,895,803,807 30,037,219,072

- - - - - -

560,951,061 145,691,128 48,125,916 1,126,420,955 4,522,662,812 39,481,035,648

118,969,252 174,380,60611,267,3156,578,031

311,195,204

92,466,502 1,868,892

13,208,230 4,114,612 4,618,928 4,194,358

85,546 2,758,143

2,336,181 8,688,806 6,224,843

7,778 189,613 74,531

818,953 231,472

141,887,388

2,473,860

171,781,676

(348,248,280)

(8,557,846)

(2,312,637)

(187,337,087)

1,663,154,271

2,097,931

8,420,207

1,486,335,322

(7,151,024)

38,222,397,956 (38,935,217,369)

(712,819,413)

766,364,885

10,275,570,295

905,598,903

11,947,534,083



funds +




Total income


Total expenses














(1) Fund renamed on 1 August 2003 (formerly known as US Small Cap Value Fund).+ Represents the combined totals of all Morgan Stanley SICAV Funds.

Latin US US USAmerican US Equity US Small Cap Small Cap

Equity Equity Growth Property Equity GrowthFund Fund Fund Fund Fund (1) Fund

USD USD USD USD USD USD USD

5,454,691 433,094 5,364,257 3,214,158 583,721 144,634 - - - - - -

19,750 11,175 164,533 11,250 15,769 12,994 65,175 - 631,009 166,865 33,203 38,530

5,539,616 444,269 6,159,799 3,392,273 632,693 196,158

1,624,064 377,207 7,401,957 737,872 908,460 1,783,813 26,496 1,625 32,361 4,083 3,317 7,110

196,301 109,171 745,747 141,287 121,827 213,551 60,157 27,380 226,782 40,141 37,284 62,517 70,868 18,023 325,166 39,362 33,425 73,449 81,199 28,664 189,665 69,108 66,836 80,324

- - - - - - 51,944 21,157 29,221 8,748 89,153 60,555

79,066 2,903 73,572 39,369 11,588 33,116 55,944 42,840 802,623 35,139 71,017 123,392 58,503 8,707 323,193 69,888 66,902 156,860

- - - - - - - - - - - - - - - - - - - - - 365,425 - -

4,650 9,939 4,792 4,650 4,650 4,650

2,309,192 647,616 10,155,079 1,555,072 1,414,459 2,599,337

56 424 - - 7,643 -

3,230,480 (202,923) (3,995,280) 1,837,201 (774,123) (2,403,179)

15,966,941 (479,206) 3,568,021 4,418,982 9,114,417 20,676,134

- - - - - -

(25,470) (50,836) (204,081) 49,604 (18,600) (14,704)

19,171,951 (732,965) (631,340) 6,305,787 8,321,694 18,258,251

48,593,133 8,757,817 136,458,877 18,801,952 12,164,872 29,541,690

- - - - - -

- - - - - -

67,765,084 8,024,852 135,827,537 25,107,739 20,486,566 47,799,941

- - - - - -

195,701,991 62,189,283 517,260,536 59,784,801 47,719,657 164,415,108 (183,249,249) (42,664,752) (656,610,151) (77,155,985) (70,431,047) (114,363,013)

12,452,742 19,524,531 (139,349,615) (17,371,184) (22,711,390) 50,052,095

80,217,826 27,549,383 (3,522,078) 7,736,555 (2,224,824) 97,852,036

120,320,829 26,978,893 697,505,216 72,713,866 75,640,200 103,490,220

- - - - - -

200,538,655 54,528,276 693,983,138 80,450,421 73,415,376 201,342,256

118,969,252 174,380,60611,267,3156,578,031

311,195,204

92,466,502 1,868,892

13,208,230 4,114,612 4,618,928 4,194,358

85,546 2,758,143

2,336,181 8,688,806 6,224,843

7,778 189,613 74,531

818,953 231,472

141,887,388

2,473,860

171,781,676

(348,248,280)

(8,557,846)

(2,312,637)

(187,337,087)

1,663,154,271

2,097,931

8,420,207

1,486,335,322

(7,151,024)

38,222,397,956 (38,935,217,369)

(712,819,413)

766,364,885

10,275,570,295

905,598,903

11,947,534,083





Total income


Total expenses














(1) Fund renamed on 3 February 2003 (formerly known as US Growth and Income Fund).+ Represents the combined totals of all Morgan Stanley SICAV Funds.

Emerging Euro EuroUS World Markets Euro Corporate Strategic

Value Equity Equity Debt Bond Bond Bond Fund (1) Fund Fund Fund Fund Fund

USD USD USD EUR EUR EUR USD


funds +

5,725,943 3,700,290 - - - - - - 17,473,361 30,237,470 7,016,268 8,463,970

58,700 27,097 69,253 479,848 173,673 130,136 738,688 202,342 127,086 120,358 - 29,718

6,523,331 3,929,729 17,669,700 30,837,676 7,189,941 8,623,824

3,405,590 2,653,640 2,945,845 4,971,537 939,246 1,317,721 15,617 33,504 38,505 112,786 21,001 29,072

453,373 317,317 345,319 680,816 173,972 233,115 113,226 91,301 88,303 224,892 61,885 69,581 154,228 125,560 115,728 342,611 79,738 90,986 118,040 103,424 101,377 184,197 78,577 81,056

- - - - - - 25,608 181,307 16,454 8,870 10,126 8,346

56,533 58,432 55,528 96,183 43,654 24,242 326,086 249,240 235,651 805,414 126,658 201,600 289,662 26,547 100,023 194,042 26,148 152,616

- - - - - - - - - - - - - - - - - - - - - - - -

4,650 4,702 4,650 4,214 4,595 4,495

4,962,613 3,844,974 4,047,383 7,625,562 1,565,600 2,212,830

- - - - 44,303 -

1,560,718 84,755 13,622,317 23,212,114 5,668,644 6,410,994

10,616,432 6,207,564 31,963,516 11,632,373 1,846,494 3,450,652

- - (1,597,603) - (93,955) (443,197)

(192,456) (1,317,726) (156,186) (157,647) 865,174 968,890

11,984,694 4,974,593 43,832,044 34,686,840 8,286,357 10,387,339

65,519,989 61,652,099 13,209,575 (11,840,536) 1,491,565 (2,071,943)

- - (281,896) - 42,395 202,200

- 185,596 - - 571,260 (48,231)

77,504,683 66,812,288 56,759,723 22,846,304 10,391,577 8,469,365

- - - - - -

322,372,572 360,726,057 169,368,794 734,997,686 253,518,463 181,807,901 (388,404,565) (318,081,189) (219,489,608) (691,828,600) (95,217,295) (150,293,444)

(66,031,993) 42,644,868 (50,120,814) 43,169,086 158,301,168 31,514,457

11,472,690 109,457,156 6,638,909 66,015,390 168,692,745 39,983,822

307,313,569 187,133,009 244,353,256 642,163,716 68,457,432 170,645,586

- - - - - -

318,786,259 296,590,165 250,992,165 708,179,106 237,150,177 210,629,408

118,969,252 174,380,60611,267,3156,578,031

311,195,204

92,466,502 1,868,892

13,208,230 4,114,612 4,618,928 4,194,358

85,546 2,758,143

2,336,181 8,688,806 6,224,843

7,778 189,613 74,531

818,953 231,472

141,887,388

2,473,860

171,781,676

(348,248,280)

(8,557,846)

(2,312,637)

(187,337,087)

1,663,154,271

2,097,931

8,420,207

1,486,335,322

(7,151,024)

38,222,397,956 (38,935,217,369)

(712,819,413)

766,364,885

10,275,570,295

905,598,903

11,947,534,083



funds +




Total income


Total expenses















European Select Global Select GlobalCurrencies High Global Convertible Convertible Short Maturity

Yield Bond Bond Bond Bond Euro Bond US BondFund Fund (Euro) Fund (USD) Fund Fund Fund

EUR USD EUR USD EUR USD USD

59,328 - 120,845 29,867 - - 4,014,146 11,792,891 2,285,896 641,971 28,598,706 14,479,462

- 122,925 19,604 15 595,376 2,249,154 60,653 23,386 - - 119,675 -

4,134,127 11,939,202 2,426,345 671,853 29,313,757 16,728,616

391,049 1,963,941 896,653 250,582 4,703,960 2,940,818 7,352 43,468 14,982 4,145 106,025 21,454

108,361 375,938 130,236 75,094 622,168 471,745 30,695 104,576 56,922 27,843 219,917 143,789 28,180 148,821 72,192 21,994 326,623 207,582 54,788 112,421 16,145 5,396 185,310 144,109

715 - - - - - 5,928 9,392 24,078 21,628 8,125 6,103

12,277 81,932 64,170 18,433 124,806 97,467 43,718 271,699 59,497 16,560 683,166 419,192 90,091 77,658 21,545 2,228 515,193 225,528

- - - - - - - - - - - - - - - - - - - - - - - -

4,192 5,104 4,196 4,702 4,192 8,437

777,346 3,194,950 1,360,616 448,605 7,499,485 4,686,224

18,450 - - - - -

3,375,231 8,744,252 1,065,729 223,248 21,814,272 12,042,392

(26,108,733) 30,343,060 2,813,061 2,318,918 2,392,766 589,152

- (1,817,886) - - - (2,264,083)

1,852,422 1,940,280 5,402,247 (1,133,403) (86,238) 156,788

(20,881,080) 39,209,706 9,281,037 1,408,763 24,120,800 10,524,249

31,827,531 5,914,850 (2,824,416) 4,385,708 (6,573,869) (1,585,576)

- 1,027,535 - - - 821,220

783,695 (272,264) 7,630,574 (1,421,179) - -

11,730,146 45,879,827 14,087,195 4,373,292 17,546,931 9,759,893

- - - - - -

77,235,245 328,818,107 209,051,554 90,069,164 731,430,515 821,345,414 (50,613,912) (354,271,657) (49,230,933) (5,553,396) (705,777,647) (883,353,395)

26,621,333 (25,453,550) 159,820,621 84,515,768 25,652,868 (62,007,981)

38,351,479 20,426,277 173,907,816 88,889,060 43,199,799 (52,248,088)

42,778,570 293,147,903 35,306,639 12,044,789 649,102,558 399,490,951

- - - - - -

81,130,049 313,574,180 209,214,455 100,933,849 692,302,357 347,242,863

118,969,252 174,380,60611,267,3156,578,031

311,195,204

92,466,502 1,868,892

13,208,230 4,114,612 4,618,928 4,194,358

85,546 2,758,143

2,336,181 8,688,806 6,224,843

7,778 189,613 74,531

818,953 231,472

141,887,388

2,473,860

171,781,676

(348,248,280)

(8,557,846)

(2,312,637)

(187,337,087)

1,663,154,271

2,097,931

8,420,207

1,486,335,322

(7,151,024)

38,222,397,956 (38,935,217,369)

(712,819,413)

766,364,885

10,275,570,295

905,598,903

11,947,534,083





Total income


Total expenses















Select SelectUS Dollar US High Euro Sterling US Dollar Global Global

Short Duration Yield Bond Liquidity Liquidity Liquidity Diversified DiversifiedFund Fund Fund Fund Fund (Euro) Fund (USD) Fund

USD USD EUR GBP USD EUR USD USD


funds +

- 547,000 - - - 268,165 113,149 2,864,903 10,068,145 15,413,921 655,861 6,728,432 309,615 124,837

- 43,034 3,624,859 213,541 1,453,529 7,132 - - - - - - - -

2,864,903 10,658,179 19,038,780 869,402 8,181,961 584,912 237,986

447,781 836,803 1,991,486 51,904 3,013,763 182,070 78,175 7,351 6,840 97,498 2,783 32,602 3,853 1,484

130,382 210,967 544,718 74,279 726,635 67,011 70,355 57,174 51,458 248,593 26,629 208,102 20,995 18,90662,096 60,250 85,605 2,183 63,299 13,271 4,439 79,083 77,862 219,118 16,089 206,858 42,922 49,142 10,060 - - - - - 22 5,909 9,884 34,103 3,339 20,701 36,306 24,403

89,693 44,504 145,552 4,849 58,941 11,855 3,166 9,007 80,296 132,706 1,401 12,635 11,479 7,238

21,922 72,265 159,855 47 10,860 9,388 1,413 - 8 163 14 7,562 - - - 3,803 172 - 185,615 - - - 2,322 - - 72,209 - - - - - - - - -

5,206 4,883 3,674 2,696 9,581 9,197 9,706

925,664 1,462,145 3,663,243 186,213 4,629,363 408,347 268,449

382,469 - 311,453 103,672 546,196 47,724 123,088

2,321,708 9,196,034 15,686,990 786,861 4,098,794 224,289 92,625

748,473 (40,547,244) - 1,320 4,178 (810,051) 451,725

(1,719,161) (550,627) - - - - -

(96) (1,263,071) (74) - - 718,349 (43,642)

1,350,924 (33,164,908) 15,686,916 788,181 4,102,972 132,587 500,708

(166,674) 60,684,151 - - - 1,720,001 1,222,597

(162,863) 416,858 - - - - -

- 233,709 - - - 356,837 31,449

1,021,387 28,169,810 15,686,916 788,181 4,102,972 2,209,425 1,754,754

- (316,219) (3,888,153) (1,150) (2,428,424) - -

284,218,440 216,301,925 1,558,148,907 28,679,277 25,575,862,199 46,441,522 6,484,133 (195,850,687) (261,703,522) (1,500,693,159) (47,047,629) (26,227,760,020) (10,994,713) (6,343,030)

88,367,753 (45,401,597) 57,455,748 (18,368,352) (651,897,821) 35,446,809 141,103

89,389,140 (17,548,006) 69,254,511 (17,581,321) (650,223,273) 37,656,234 1,895,857

60,718,101 122,050,432 625,785,681 30,239,115 1,085,546,011 15,269,118 7,940,250

- - - - - - -

150,107,241 104,502,426 695,040,192 12,657,794 435,322,738 52,925,352 9,836,107

118,969,252 174,380,60611,267,3156,578,031

311,195,204

92,466,502 1,868,892

13,208,230 4,114,612 4,618,928 4,194,358

85,546 2,758,143

2,336,181 8,688,806 6,224,843

7,778 189,613 74,531

818,953 231,472

141,887,388

2,473,860

171,781,676

(348,248,280)

(8,557,846)

(2,312,637)

(187,337,087)

1,663,154,271

2,097,931

8,420,207

1,486,335,322

(7,151,024)

38,222,397,956 (38,935,217,369)

(712,819,413)

766,364,885

10,275,570,295

905,598,903

11,947,534,083



Statement of share and net assets statisticsAs at 31 December 2003

Competitive Emerging Emerging Europe Asian Asian Edge Europe and Markets ex UK European

Equity Property “Best Ideas” Middle East Equity Property EquityFund Fund Fund Equity Fund (1) Fund Fund Fund

USD USD USD EUR USD EUR EUR

Net asset value per share class I31 December 200131 December 200231 December 2003

Net asset value per share class A31 December 200131 December 200231 December 2003

Net asset value per share class B31 December 200131 December 200231 December 2003

Net asset value per share class IX31 December 200131 December 200231 December 2003

Net asset value per share class AX31 December 200131 December 200231 December 2003

Net asset value per share class BX31 December 200131 December 200231 December 2003

Net asset value per share class M31 December 200131 December 200231 December 2003

Net asset value per share class MX31 December 200131 December 200231 December 2003

Net assets31 December 200131 December 200231 December 2003

(1) Fund renamed on 2 May 2003 (formerly known as Emerging Europe Fund).

14.82 6.83 6.87 18.94 10.96 23.52 8.29 13.17 5.92 5.48 16.24 10.19 26.87 5.89 19.68 8.38 6.75 24.00 15.78 31.91 6.31

14.42 6.65 6.78 18.81 10.65 23.52 8.21 12.74 5.73 5.38 16.04 9.85 26.73 5.79 18.94 8.07 6.58 23.57 15.17 31.56 6.17

13.77 6.53 6.64 18.71 10.24 23.48 8.09 12.04 5.65 5.22 15.96 9.42 26.43 5.66 17.72 7.91 6.32 23.31 14.42 30.95 5.96

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - -- - - - - - -

142,193,796 27,926,057 95,466,616 38,482,139 254,194,698 105,887,020 396,923,739 152,894,633 3,595,663 59,309,807 5,422,947 267,679,040 16,396,463 432,352,104 281,339,773 6,634,396 50,131,399 18,527,224 403,760,221 18,701,745 223,588,535


Statement of share and net assets statistics (continued)As at 31 December 2003

European European European GlobalEquity Growth European Small Cap European Global Small Cap

Growth Opportunities Property Value Value Equity Brands ValueFund Fund (1) Fund Fund Fund Fund Fund

EUR EUR EUR EUR EUR USD USD










11.93 18.48 13.07 26.13 27.78 27.47 17.81 8.33 12.61 13.68 21.02 21.51 29.52 16.21 8.99 - 16.17 25.61 23.29 37.59 23.58

11.77 18.35 12.74 26.12 26.99 27.30 17.33 8.17 12.44 13.27 20.89 20.78 29.17 15.69 8.76 - 15.59 25.31 22.37 36.93 22.69

11.44 18.22 12.33 26.09 25.83 26.98 16.80 7.87 12.25 12.71 20.63 19.69 28.56 15.09 8.35 - 14.79 24.76 20.98 35.79 21.67

- - - - - - - - - - - - - -- - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

509,130,686 3,652,582 111,258,581 12,872,961 715,603,852 69,625,024 55,948,708 490,442,645 3,606,124 120,826,033 32,069,701 623,244,793 351,837,571 68,343,457 372,185,835 - 116,102,002 25,476,737 509,968,082 560,951,061 145,691,128

(1) Fund closed and merged into the European Small Cap Value Fund on 2 May 2003.





Japanese Latin USGlobal Global Equity Japanese American US Equity

Technology Value Equity Growth Value Equity Equity Equity GrowthFund Fund Fund (1) Fund Fund Fund Fund

USD USD JPY JPY USD USD USD










(1) Fund renamed on 3 November 2003 (formerly known as Japanese Growth Opportunities Fund).

3.87 32.95 703.15 857.56 13.93 24.78 31.14 2.04 27.56 539.31 701.21 10.89 18.43 22.34 3.02 35.53 674.27 841.19 17.40 23.43 27.72

3.82 32.04 697.23 833.98 13.55 24.80 30.30 2.00 26.65 531.75 678.04 10.53 18.32 21.61 2.96 34.16 660.92 808.76 16.73 23.21 26.66

3.76 30.63 689.93 790.04 12.90 24.76 29.03 1.96 25.22 523.20 635.75 9.93 18.11 20.50 2.88 32.01 646.06 750.76 15.62 22.72 25.04

- - - - - - - - - - - - - - - - - - - - -

- - - - - - -- - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

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 27,365,644 1,031,666,793 2,895,803,807 30,037,219,072 120,320,829 26,978,893 697,505,216 48,125,916 1,126,420,955 4,522,662,812 39,481,035,648 200,538,655 54,528,276 693,983,138



US US Emerging US Small Cap Small Cap US World Markets Euro

Property Equity Growth Value Equity Equity Debt BondFund Fund (1) Fund Fund (2) Fund Fund Fund

USD USD USD USD USD USD EUR










(1) Fund renamed on 1 August 2003 (formerly known as US Small Cap Value Fund).(2) Fund renamed on 3 February 2003 (formerly known as US Growth and Income Fund).

20.39 23.41 30.38 16.80 20.03 28.47 8.83 19.86 19.12 23.46 13.62 15.51 31.52 9.54 27.12 26.52 33.76 17.56 20.31 40.37 9.94

19.92 22.73 29.55 16.34 19.88 27.64 8.64 19.29 18.46 22.69 13.18 15.31 30.42 9.31 26.19 25.47 32.47 16.89 19.92 38.74 9.66

19.00 21.77 28.24 15.65 19.62 26.47 8.34 18.22 17.52 21.47 12.49 14.95 28.80 8.86 24.49 23.95 30.41 15.85 19.27 36.31 9.10

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

179,826,712 51,046,503 140,180,565 287,010,041 256,924,604 245,118,494 845,201,576 72,713,866 75,640,200 103,490,220 307,313,569 187,133,009 244,353,256 642,163,716 80,450,421 73,415,376 201,342,256 318,786,259 296,590,165 250,992,165 708,179,106





Euro Euro European Select Global Select GlobalCorporate Strategic Currencies High Global Convertible Convertible Short Maturity

Bond Bond Yield Bond Bond Bond Bond Euro BondFund Fund Fund Fund (Euro) Fund (USD) Fund Fund

EUR EUR EUR USD EUR USD EUR










25.20 24.13 10.21 19.79 - - 15.48 26.51 25.70 7.92 23.24 24.79 25.19 16.28 28.81 27.14 10.08 27.32 27.52 28.32 16.76

25.15 23.64 10.04 19.40 - - 15.14 26.33 25.07 7.75 22.69 24.74 25.14 15.86 28.50 26.36 9.83 26.53 27.33 28.15 16.26

25.08 22.64 9.67 18.48 - - 14.68 26.00 23.77 7.39 21.40 24.63 25.03 15.22 27.86 24.75 9.29 24.78 26.94 27.75 15.44

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - -- - - - - - -

25,218,186 291,132,270 114,230,283 228,484,001 - - 556,342,178 68,457,432 170,645,586 42,778,570 293,147,903 35,306,639 12,044,789 649,102,558

237,150,177 210,629,408 81,130,049 313,574,180 209,214,455 100,933,849 692,302,357



US Dollar Select Global Select GlobalShort US High Euro Sterling US Dollar Diversified Diversified

US Bond Duration Yield Bond Liquidity Liquidity Liquidity (Euro) (USD)Fund Fund Fund Fund Fund Fund Fund Fund

USD USD USD EUR GBP USD EUR USD










17.72 - 17.87 10.84 10.13 11.30 24.94 25.00 19.18 10.05 15.98 11.16 10.49 11.46 23.14 23.78 19.82 10.17 20.15 11.38 10.83 11.55 24.96 28.84

17.35 - 17.50 10.75 10.13 11.16 24.94 25.00 18.70 10.04 15.59 11.06 10.47 11.27 23.01 23.66 19.25 10.11 19.59 11.26 10.80 11.32 24.68 28.54

16.62 - 16.68 10.52 10.10 10.88 - - 17.74 9.99 14.71 10.74 10.37 10.94 22.51 23.55 18.07 9.97 18.22 10.86 10.61 10.98 23.91 28.12

- - 15.46 1.00 - 1.00 - - - - 12.53 1.00 10.00 1.00 - - - - - 1.00 10.00 1.00 - -

- - 14.51 1.00 - 1.00 - - - - 11.68 1.00 - 1.00 - - - - - 1.00 - 1.00 - -

- - 14.08 - - 1.00 - - - - 11.33 - - 1.00 - - - - - - - 1.00 - -

- - - 10.84 10.14 11.30 - - - - - 11.19 10.53 11.48 - - - - - 11.44 - - - -

- - - 1.00 10.00 1.00 - - - - - 1.00 10.00 1.00 - - - - - - - 1.00 - -

334,029,765 - 220,181,325 363,510,512 20,958,041 1,095,993,939 2,606,023 2,000 399,490,951 60,718,101 122,050,432 625,785,681 30,239,115 1,085,546,011 15,269,118 7,940,250 347,242,863 150,107,241 104,502,426 695,040,192 12,657,794 435,322,738 52,925,352 9,836,107



1 The Company

The Company was incorporated on 21 November 1988 under the laws of the Grand Duchy of Luxembourg as a “Sociétéd’Investissement à Capital Variable” (“SICAV”) and is registered asan undertaking for collective investment pursuant to Part 1 of theLaw of 30 March 1988. The Company is an Undertaking forCollective Investment in Transferable Securities (“UCITS”) for thepurpose of the Council Directive EEC/85/611 (“UCITS Directive”).

The exclusive purpose of the Company is to invest the fundsavailable to it in transferable securities and other assets permittedby law, with the purpose of spreading investment risks andaffording its shareholders the results of the management of itsassets. The Company is presently structured to provide bothinstitutional and individual investors with a variety of equity, bond,liquidity and asset allocation Funds. At the date of this report forty-two Funds are open for subscription.

Fund Date of launch

Asian Equity Fund 8 October 1991Asian Property Fund 1 July 1997Competitive Edge “Best Ideas” Fund 22 November 1999Emerging Europe and Middle East Equity Fund* 16 October 2000Emerging Markets Equity Fund 27 July 1993Europe ex UK Property Fund 29 January 2001European Equity Fund 3 April 2000European Equity Growth Fund 29 January 1999European Growth Opportunities Fund ** 16 October 2000European Property Fund 1 July 1997European Small Cap Value Fund 12 November 2001European Value Equity Fund 5 March 1991Global Brands Fund 30 October 2000Global Small Cap Value Fund 14 December 1993Global Technology Fund 31 January 2000Global Value Equity Fund 7 November 1989Japanese Equity Growth Fund*** 3 July 2000Japanese Value Equity Fund 25 May 1993Latin American Equity Fund 2 August 1994US Equity Fund 3 December 2001US Equity Growth Fund 25 August 1992US Property Fund 9 January 1996US Small Cap Equity Fund**** 17 May 1994US Small Cap Growth Fund 27 August 1991US Value Equity Fund***** 17 May 1994World Equity Fund 31 July 2000Emerging Markets Debt Fund 11 April 1995Euro Bond Fund 15 September 1992Euro Corporate Bond Fund 3 September 2001Euro Strategic Bond Fund 25 February 1991European Currencies High Yield Bond Fund 27 May 1997Global Bond Fund 7 November 1989Select Global Convertible Bond (Euro) Fund 16 July 2002Select Global Convertible Bond (USD) Fund 16 July 2002Short Maturity Euro Bond Fund 2 August 1994US Bond Fund 25 August 1992US Dollar Short Duration Fund 24 July 2002US High Yield Bond Fund 6 October 1992Euro Liquidity Fund 31 January 2000Sterling Liquidity Fund 3 September 2001US Dollar Liquidity Fund 1 April 1998Select Global Diversified (Euro) Fund 12 December 2001Select Global Diversified (USD) Fund 12 December 2001

* Fund renamed on 2 May 2003 (formerly known as Emerging Europe Fund).** Fund was closed on 2 May 2003 and merged into the European Small Cap Value Fund on the

same day.*** Fund renamed on 3 November 2003 (formerly known as Japanese Growth Opportunities Fund).**** Fund renamed on 1 August 2003 (formerly known as US Small Cap Value Fund).***** Fund renamed on 3 February 2003 (formerly known as US Growth and Income Fund).

Each Class of Shares within each Fund has a different fee structurebut participates in the same pool of assets within a given Fund. Forthe “IX”, “MX”, “AX” and “BX” Classes of Shares of the Liquidity Funds,the Company intends to declare dividends which will be equal to thenet investment income and realised capital gains, reduced by realisedlosses, if any attributable to such Classes. Such dividends, if any,will be declared on each Luxembourg Business Day in the case ofthe Liquidity Funds.

The following significant changes were made in the twelve monthsto 31 December 2003:

• The European Growth Opportunities Fund merged into theEuropean Small Cap Value Fund on 2 May 2003.

• The shelf Fund, Pacific Basin Equity Fund, was deleted from theJuly 2003 prospectus.

• On 27 October 2003, a new trading model was brought intoeffect. The shareholder trading cut-off moved to 1pm(Luxembourg time) across all Funds. The Net Asset Value ofeach Fund is now calculated and delivered by 3.30pm(Luxembourg time) on each dealing day.

• On 3 November 2003, the Classes of Shares “AX”, “BX” and “IX”of the US High Yield Bond Fund were closed.

2 Significant accounting policies

The financial statements are presented in accordance with generallyaccepted accounting principles in Luxembourg.

a) Valuation of securitiesSecurities listed on a recognised stock exchange or dealt onany other regulated market are valued at their last available mid-market prices, or, in the event that there should be several suchmarkets, on the basis of their last available traded prices on themain market for the relevant security.

In the event that the last available traded price does not truly reflect the fair market value of the relevant securities, the valueof such securities will be based on the reasonably foreseeablesales price determined prudently and in good faith pursuant toprocedures established by the Directors.

Securities not listed or traded on a stock exchange or not dealton another regulated market are valued on the basis of thereasonably foreseeable sales price determined prudently and ingood faith pursuant to procedures established by the Directors.

Securities with a known short-term maturity date, are valuedusing an amortised cost method. This involves valuing aninvestment at its cost and thereafter assuming a constantamortisation to maturity of any discount or premium, regardlessof the impact of fluctuating interest rates on the market value ofthe investments.

Notes to the financial statementsAs at 31 December 2003


b) Valuation of forward exchange currency and futurescontractsForward and futures contracts as disclosed on page 109 to 112,which are traded on exchanges or on other organised markets arevalued at the last available settlement prices of these contracts onexchanges and organised markets on which the particular futuresor forwards contracts are traded by the Company.

c) Securities transactionsSecurities transactions are accounted for on the date thesecurities are purchased or sold. Realised gains or losses onthe sale of securities are determined on the basis of theaverage cost method.

d) Translation of foreign currenciesTransactions in foreign currencies are translated into the currencyof each Fund at the exchange rate ruling at the date of thetransactions. Assets and liabilities denominated in foreign currenciesare translated into the currency of each Fund at the exchangerates ruling at the date of the statement of assets and liabilities.

The combined statement of assets and liabilities is presented inUS dollars at the exchange rates ruling at the date of thestatement of assets and liabilities, while the combined statementof operations and changes in net assets is presented in USdollars at the average exchange rates ruling during the year.

e) Forward settlement transactionsThe Company may, to a limited extent, enter into forward settlementtransactions for the purpose of efficient portfolio management orhedging with broker-dealers who make markets in these transactionsand who are first class financial institutions that specialise in thesetypes of transactions and are participants in the over-the-countermarkets. Such transactions consist of the purchase or sale of debtsecurities at their current price with delivery and settlement at aspecified future date (which could be in two to twelve months time).

As settlement date approaches for such transactions, theCompany may agree with the relevant broker-dealer either tobuy or sell the debt securities back to such broker-dealer or toroll the trade for a further period with any gains or lossesrealised on the trade paid to, or received from, the broker-dealer. Purchase transactions are, however, entered into by theCompany with a view to acquiring the relevant debt securities.

The Company may pay customary fees included in the price ofthe debt securities to the relevant broker-dealer in order tofinance the cost to such broker-dealer of the delayed settlement.

As of 31 December 2003, there were no forward settlementtransactions positions.

f) Valuation of repurchase agreementsUnder a repurchases agreement, the Company purchasessecurities and agrees to re-sell them at a mutually agreed upondate and price. Repurchase agreements are valued at cost withinterest accrued from the date of purchase.

3 Securities lending

As of 31 December 2003, the Company loaned securities havinga value of USD 1,310,955,642 and received collateral with amarket value at 31 December 2003 of USD 1,411,916,280.

4 Related party transactions

Under the terms of an investment advisory agreement, MorganStanley Investment Management, Inc. has been appointedInvestment Adviser with responsibility for advising the Companywithin the scope of the day-to-day management of the variousFunds. The Investment Adviser is entitled to receive from theCompany a fee payable monthly in arrears, and calculated on thebasis of the average daily net assets (before deduction of the fee)of each Fund attributable to each Class of Shares.

All expenses are paid directly by the Company and fees paid to theInvestment Adviser are at the following annual rates:

Fund name Class I, IX*, Class A, B,M and MX* AX and BX*

Asian Equity Fund 0.75 1.25Asian Property Fund 0.75 1.25Competitive Edge “Best Ideas” Fund 0.75 1.25Emerging Europe and Middle East Equity Fund 1.10 1.60Emerging Markets Equity Fund 1.10 1.60Europe ex UK Property Fund 0.75 1.25European Equity Fund 0.70 1.20European Equity Growth Fund 0.75 1.25European Property Fund 0.75 1.25European Small Cap Value Fund 0.95 1.45European Value Equity Fund 0.75 1.25Global Brands Fund 0.75 1.25Global Small Cap Value Fund 0.95 1.45Global Technology Fund 0.95 1.45Global Value Equity Fund 0.75 1.25Japanese Equity Growth Fund 0.95 1.45Japanese Value Equity Fund 0.75 1.25Latin American Equity Fund 1.00 1.50US Equity Fund 0.70 1.20US Equity Growth Fund 0.70 1.20US Property Fund 0.75 1.25US Small Cap Equity Fund 0.95 1.45US Small Cap Growth Fund 0.95 1.45US Value Equity Fund 0.70 1.20World Equity Fund 0.75 1.25Emerging Markets Debt Fund 0.90 1.40Euro Bond Fund 0.45 0.80Euro Corporate Bond Fund 0.45 0.80Euro Strategic Bond Fund 0.45 0.80European Currencies High Yield Bond Fund 0.50 0.85Global Bond Fund 0.45 0.80Select Global Convertible Bond (Euro) Fund 0.60 1.00Select Global Convertible Bond (USD) Fund 0.60 1.00Short Maturity Euro Bond Fund 0.45 0.80US Bond Fund 0.45 0.80US Dollar Short Duration Fund 0.35 0.70US High Yield Bond Fund 0.50 0.85Euro Liquidity Fund 0.20 0.35Sterling Liquidity Fund 0.20 0.35US Dollar Liquidity Fund 0.20 0.60Select Global Diversified (Euro) Fund 0.60 1.10Select Global Diversified (USD) Fund 0.60 1.10

* only the Euro Liquidity Fund, the Sterling Liquidity Fund and the US Dollar Liquidity Fund issueClasses IX, AX, BX, M and MX Shares at present.

Notes to the financial statements (continued)As at 31 December 2003


In the case of any individual Fund, the Investment Adviser maychoose to waive all of its fee or any portion thereof at its absolutediscretion for an indefinite period, in order to reduce the impactsuch fee may have on the performance of the Fund in instanceswhere the Fund’s net assets are of insufficient size.

The Funds are subject to a monthly shareholder service fee at amaximum annual rate of 0.25 % of the Funds’ aggregate averagedaily net asset value attributable to all Classes of Shares of theFunds. For the foreseeable future, the Company has reduced thefees for shareholder service so that the Equity Funds, Bond Fundsand Asset Allocation Funds are subject to a monthly shareholderservice fee at the annual rate of 0.08 % of the Funds’ aggregateaverage daily net asset value attributable to Classes I and IX Sharesand at the annual rate of 0.15 % of the Funds’ aggregate averagedaily net asset value attributable to Classes A and AX Shares andClasses B and BX Shares. The Company has similarly reduced thefees for shareholder service so that the Liquidity Funds will besubject to a monthly shareholder service fee at the annual rate of0.05 % of such Funds’ aggregate average daily net asset valueattributable to the relevant Class of Shares. The Company maysubject Classes “M” and “MX” Shares to a shareholder service feebut currently has decided not to.

The shareholder service fee is paid to Morgan Stanley InvestmentManagement Limited (the “Distributor”) as compensation forproviding 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 paidmonthly, at the annual rate of 1.00 % of the average daily net assetvalue of Classes B and BX Shares as compensation for providingdistribution-related services to the Funds with respect to suchShares.

The Liquidity Funds will pay the Distributor a distribution fee,accrued daily and paid monthly, at the annual rate of 0.75 % of theaverage daily net asset value for Classes B and BX Shares.

a) Morgan Stanley Investment Management Inc. and the sub-advisers for the Morgan Stanley SICAV have entered into thefollowing types of transactions in which a connected person hada material interest:

i) The transaction is in relation to an investment in respect ofwhich an affiliated firm benefited from a commission, fee,mark up or mark down; or

ii) The transaction is in relation to a placing and/or a newissue in which the affiliated company was a member of theunderwriting syndicate.

All the transactions executed on behalf of the Morgan StanleySICAV were entered into in the ordinary course of business andon normal commercial terms.

b) The total aggregate value of the transactions of the MorganStanley SICAV effected through affiliated firm is USD3,075,413,289; such transactions represent 2.71% of totaltransactions. Total brokerage commission paid to affiliated firmsis USD 941,923 at an average rate of commission of 0.03%.

The Fund compensates its legal adviser Kremer Associés& Clifford Chance (of which Mr. Christian Kremer, a director ofMorgan Stanley SICAV, is a partner) for legal services renderedto the Fund. Payments of USD 1,076,501 were made in theyear ended 31 December 2003.

Administration charges include operational costs of MorganStanley Investment Management, Luxembourg branch,amounting to USD 1,068,725.

The Company has entered into a securities lending contractwith Morgan Stanley & Co. International Limited, MorganStanley Trading GmbH & Co KG, Morgan Stanley SecuritiesLimited, Morgan Stanley & Co Incorporated and MSDW EquityFinance Service I (Cayman) Limited. This contract provides forthe Company to lend securities under normal commercial terms.

5 Taxation

Under current law and practice, the Company is not liable to anyLuxembourg income tax, or any Luxembourg capital gains tax onthe realised capital appreciation of the assets of the Company norare dividends paid by the Company liable to any Luxembourgwithholding tax. The Company is, however, liable to annual tax inLuxembourg calculated at the rate of 0.05 % of the net asset valueof 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 payablequarterly on the basis of the net assets of the relevant Funds,calculated at the end of the quarter to which the tax relates. Nostamp or other tax will be payable in Luxembourg in connection withthe issue of Shares of the Company, except a once and for all tax ofEuro 1,239.47 which was paid upon incorporation.

Dividends, interest and capital gains on securities held by theCompany may be subject to non-recoverable withholding tax orcapital gains tax in the country of origin.

6 Rates of Exchange

The rates of exchange used for translation into U.S. dollars of assetsand liabilities, including securities and foreign currency holdings, asof 31 December 2003 were:

Currency

Argentine Peso (ARS) 2.926 = $1.00Australian Dollar (AUD) 1.332 = $1.00Brazilian Real (BRL) 2.902 = $1.00British Pound (GBP) 0.560 = $1.00Canadian Dollar (CAD) 1.291 = $1.00Czech Koruna (CZK) 25.813 = $1.00Danish Krone (DKK) 5.906 = $1.00Egyptian Pound (EGP) 6.170 = $1.00Euro (EUR) 0.793 = $1.00



Hong Kong Dollar (HKD) 7.763 = $1.00Hungarian Forint (HUF) 208.070 = $1.00Indian Rupee (INR) 45.565 = $1.00Indonesian Rupiah (IDR) 8,422.500 = $1.00Israeli Shekel (ILS) 4.365 = $1.00Japanese Yen (JPY) 106.905 = $1.00Jordanian Dinar (JOD) 0.709 = $1.00Korean Won (KRW) 1,192.650 = $1.00Mexican Peso (MXN) 11.219 = $1.00Malaysian Ringgit (MYR) 3.800 = $1.00New Zealand Dollar (NZD) 1.525 = $1.00Norwegian Krone (NOK) 6.655 = $1.00Omani Rial (OMR) 0.385 = $1.00Polish Zloty (PLN) 3.732 = $1.00Thai Baht (THB) 39.600 = $1.00Turkish Lira (TRL) 1,400,000.000 = $1.00Taiwan Dollar (TWD) 33.940 = $1.00Singapore Dollar (SGD) 1.699 = $1.00South African Rand (ZAR) 6.615 = $1.00Swedish Krone (SEK) 7.200 = $1.00Swiss Francs (CHF) 1.237 = $1.00

7 Soft commissions arrangements

During the year, Morgan Stanley Investment Management Inc. andthe sub-advisers for the Morgan Stanley SICAV entered into softcommission arrangements with brokers in respect of which certaingoods and services used to support the investment decisionmaking process were received. Such goods and services includeddata and quotation services, specialist industry, company andconsumer research, portfolio and market analysis, performancemeasurement services and computer hardware and software usedfor the delivery of such services.

8 Statements of portfolio changes

A statement giving the changes in the portfolio of investments forthe year ended 31 December 2003 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 isregistered to sell its Shares.

Please see list of Paying Agents on page 145.

9 Overdraft facility

The Fund has access to an overdraft facility (the “Facility”)established with J.P. Morgan Bank Luxembourg S.A.. The Facility isintended to provide if necessary for short-term/temporaryfinancing, subject to certain restrictions, in connection withabnormal redemption activity. Borrowings pursuant to the Facilityare subject to interest at a mutually agreed upon rate.

10 Repurchase Agreements

Details of the total repurchase agreements outstanding and therelated collateral at 31 December 2003 are as follows:

Fund Amount Market Value of MaturityCollateral received

GBP Liquidity (GBP) 555,829 576,408 02.01.04Euro Liquidity (EUR) 30,000,000 30,443,115 02.01.04USD Liquidity (USD) 44,200,000 45,086,101 02.01.04

The collateral received in respect of the repurchase agreementsconsists of transferable securities admitted to exchange listing ordealt in on another regulated market. The repurchase agreementshave been recorded as part of the time deposits in the statement ofassets and liabilities.

11 Liability of Fund

The Directors shall maintain for each Fund a separate pool ofassets. As between Shareholders, each pool of assets shall beinvested for the exclusive benefit of the relevant Fund.

With regard to third parties, in particular towards the Company’screditors, the Company shall be considered as one single legalentity. The Company as a whole shall be responsible for allobligations whatever be the Fund such liabilities are attributable to,save where other terms have been agreed upon with specificcreditors.

12 Subsequent events

The following significant changes will be made during the year 2004:

• On 2 February 2004, the investment objective of the EuropeanEquity Fund, the US Value Equity Fund, the Select GlobalDiversified (Euro) Fund and the Select Global Diversified (USD)Fund were amended.

• With effect from 1 January 2004, the Board of Directorsapproved the following fee changes:

Investment Advisory Fee and ”AX” and ”BX” Adviser/ Adviser/Classes ”A” Classes ”B”

and ”AX” and ”BX”

Asian Equity Fund 1.40% 1.40%Asian Property Fund 1.40% 1.40%Competitive Edge “Best Ideas” Fund 1.40% 1.40%Europe ex UK Property Fund 1.40% 1.40%European Equity Growth Fund 1.40% 1.40%European Property Fund 1.40% 1.40%European Small Cap Value Fund 1.60% 1.60%European Value Equity Fund 1.40% 1.40%Global Brands Fund 1.40% 1.40%Global Small Cap Value Fund 1.60% 1.60%Global Technology Fund 1.40% 1.40%Global Value Equity Fund 1.40% 1.40%Japanese Growth Opportonities Fund 1.60% 1.60%Japanese Value Equity Fund 1.40% 1.40%Latin American Equity Fund 1.60% 1.60%US Equity Growth Fund 1.40% 1.40%US Value Equity Fund 1.40% 1.40%US Property Fund 1.40% 1.40%US Small Cap Equity Fund 1.60% 1.60%US Small Cap Growth Fund 1.60% 1.60%World Equity Fund 1.20% 1.20%

The Investment Advisory Fees for the Funds not included in this listwill remain unchanged at this time.

• The Competitive Edge “Best Ideas” Fund will close on 1 April 2004.



Report of the independent auditorAs at 31 December 2003

We have audited the financial statements, which consist of the statement of assets andliabilities, the statement of operations and changes in net assets, the statements ofinvestments and the notes to the financial statements of Morgan Stanley SICAV and of each ofits Funds for the year ended 31 December 2003. These financial statements are theresponsibility of the Board of Directors of the Company. Our responsibility is to express anopinion on these financial statements based on our audit.

We conducted our audit in accordance with international standards on auditing. Thosestandards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by the Board of Directors of the Company in preparing the financialstatements, as well as evaluating the overall financial statement presentation. We believe thatour audit provides a reasonable basis for our opinion.

In our opinion, the attached financial statements described above give, in conformity withLuxembourg legal and regulatory requirements, a true and fair view of the financial position ofMorgan Stanley SICAV and of each of its Funds at 31 December 2003, and the results of theiroperations and changes in their net assets for the year then ended.

Supplementary information included in the annual report has been reviewed in the context ofour mandate but has not been subject to specific audit procedures carried out in accordancewith the standards described above. Consequently, we express no opinion on such information.We have no observations to make concerning such information in the context of the financialstatements taken as a whole.

M. Ferguson

Ernst & Young Société Anonyme Réviseur d’entreprises

Luxembourg 27 February 2004.

To the shareholders of Morgan Stanley SICAV


Directors and administration

DirectorsAdolf BründlerManaging Director Private BankingBank Morgan Stanley AG, Zurich

Christian KremerPartner (Lawyer)Kremer Associés & Clifford Chance Grand Duchy of Luxembourg

Stefano RussoManaging DirectorMorgan Stanley Dean Witter Bank Limited Milan

Robert SargentManaging Director Morgan StanleyInvestment Management Limited London

Investment adviserMorgan StanleyInvestment Management Inc1221 Avenue of the Americas New York NY 10020 USA

Investment sub-advisersMorgan Stanley InvestmentManagement Limited25 Cabot Square Canary Wharf London E14 4QA United Kingdom

Morgan Stanley InvestmentManagement Company23 Church Street 16-01 Capital Square Singapore, 049481

Morgan Stanley Asset & InvestmentTrust Management Co., LimitedYebisu 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 & Co. International Limited25 Cabot Square, Canary Wharf London E14 4QA United Kingdom

Registered office5, rue Plaetis L-2338 LuxembourgGrand Duchy of Luxembourg

DistributorMorgan Stanley InvestmentManagement Limited25, Cabot Square Canary Wharf London E14 4QA United Kingdom

Custodian bankJ.P. Morgan Bank Luxembourg S.A.5, rue Plaetis L-2338 LuxembourgGrand Duchy of Luxembourg

Administrator, paying anddomiciliary agentJ.P. Morgan Bank Luxembourg S.A.5, rue Plaetis L-2338 LuxembourgGrand Duchy of Luxembourg

Registrar and transfer agentFirst European Transfer Agent S.A.5 Rue Thomas Edison L-1445 Strassen Grand Duchy of Luxembourg

AuditorErnst & Young S.A.6, rue Jean Monnet L-2180 LuxembourgGrand Duchy of Luxembourg

Legal adviserKremer Associés & Clifford Chance4, Place de Paris B.P. 1147 L-1011 LuxembourgGrand Duchy of Luxembourg


Paying and Information AgentsCopies of the Financial Reports of the Company can be obtained from the following Paying and Information Agents

AustriaMeinl Bank AktiengesellschaftBauernmarkt 2 Postfach 99 A-1014 Wien Austria

FranceNatexis Banques Populaires45, rue Saint Dominique 75007 Paris France

GermanyMorgan Stanley Bank AGJunghofstrasse 13-15 60311 Frankfurt am Main Germany

GreeceAlpha Bank40, Stadiou Street GR-102 52 Athens Greece

Hong KongMorgan Stanley Dean Witter Asia Limited30th FloorThree Exchange Square, Central, Hong Kong

IrelandJ.P. Morgan Administration Services (Ireland) LimitedJPMorgan HouseInternational Financial Services Centre Dublin 1 Ireland

ItalyC/O CITCO Bank Nederland N.V.Strada 1 Palazzo F5 20090 Assago Milanofiori Italy

C/O Banca Popolare Commercio E Industria S.p.A.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 Iccrea Banca S.p.A.Via Torino, 146 00184 Roma Italy

C/O IntesaBCI S.p.A.Foro Buonaparte, 35 20121 Milano Italy

C/O Rasbank S.p.A.Piazza Erculea, 15 20122 Milano Italy

C/O BIPOP Carire S.p.A.Via Leonardo da Vinci, 74 25122 Brescia Italy

NetherlandsABN Amro Trust Company (Nederland) B.V.P.O. Box 1469 1000 BL Amsterdam The Netherlands

SpainMorgan Stanley Dean Witter, S.V., S.A. (sociedad unipersonal)Serrano 55 28006 Madrid Spain

SwitzerlandBank Morgan Stanley AGBahnhofstrasse 92 8023 Zurich Switzerland

United KingdomMorgan Stanley Investment Management Limited25 Cabot Square London E14 4QA United Kingdom


Funds Name Total Expense Ratio (%)

Asian Equity Fund A - USD 1.92Asian Equity Fund B - USD 2.92Asian Equity Fund I - USD 1.35Asian Property Fund A - USD 2.57Asian Property Fund B - USD 2.99Asian Property Fund I - USD 2.00Competitive Edge "Best Ideas" Fund A -USD 1.95Competitive Edge "Best Ideas" Fund B - USD 2.95Competitive Edge "Best Ideas" Fund I - USD 1.41Emerging Europe and Middle East Equity Fund A - EUR 2.57Emerging Europe and Middle East Equity Fund B - EUR 3.00Emerging Europe and Middle East Equity Fund I - EUR 2.00Emerging Markets Equity Fund A - USD 2.23Emerging Markets Equity Fund B - USD 2.99Emerging Markets Equity Fund I - USD 1.65Europe ex UK Property Fund A - EUR 2.00Europe ex UK Property Fund B - EUR 3.00Europe ex UK Property Fund I - EUR 1.43European Equity Fund A - EUR 1.68European Equity Fund B - EUR 2.68European Equity Fund I - EUR 1.11European Equity Growth Fund A - EUR 1.70European Equity Growth Fund B - EUR 2.70European Equity Growth Fund I - EUR 1.13European Property Fund A - EUR 1.82European Property Fund B - EUR 2.82European Property Fund I - EUR 1.25European Small Cap Value Fund A - EUR 2.17European Small Cap Value Fund B - EUR 3.17European Small Cap Value Fund I - EUR 1.59European Value Equity Fund A - EUR 1.71European Value Equity Fund B - EUR 2.71European Value Equity Fund I - EUR 1.14Global Brands Fund A - USD 1.68Global Brands Fund B - USD 2.68Global Brands Fund I - USD 1.12Global Small Cap Value Fund A - USD 2.23Global Small Cap Value Fund B - USD 3.00Global Small Cap Value Fund I - USD 1.63Global Technology Fund A - USD 2.32Global Technology Fund B - USD 3.00Global Technology Fund I - USD 1.75Global Value Equity Fund A - USD 1.64Global Value Equity Fund B - USD 2.64Global Value Equity Fund I - USD 1.07Japanese Equity Growth Fund A - JPY 2.32Japanese Equity Growth Fund B - JPY 3.00Japanese Equity Growth Fund I - JPY 1.75Japanese Value Equity Fund A - JPY 1.80Japanese Value Equity Fund B- JPY 2.80Japanese Value Equity Fund I - JPY 1.20Latin American Equity Fund A - USD 2.00Latin American Equity Fund B - USD 2.99Latin American Equity Fund I - USD 1.43US Equity Fund A - USD 2.00US Equity Fund B - USD 2.98US Equity Fund I - USD 1.43US Equity Growth Fund A - USD 1.59US Equity Growth Fund B - USD 2.59US Equity Growth Fund I - USD 1.02US Property Fund A - USD 1.79US Property Fund B - USD 2.79US Property Fund I - USD 1.22US Small Cap Equity Fund A - USD 2.13US Small Cap Equity Fund B - USD 3.00US Small Cap Equity Fund I - USD 1.56US Small Cap Growth Fund A - USD 1.96US Small Cap Growth Fund B - USD 2.96US Small Cap Growth Fund I - USD 1.39US Value Equity Fund A - USD 1.63US Value Equity Fund B - USD 2.63

Funds Name Total Expense Ratio (%)

US Value Equity Fund I - USD 1.06World Equity Fund A - USD 1.75World Equity Fund B - USD 2.76World Equity Fund I - USD 1.19Emerging Markets Debt Fund A - USD 1.85Emerging Markets Debt Fund B - USD 2.85Emerging Markets Debt Fund I - USD 1.28Euro Bond Fund A - EUR 1.18Euro Bond Fund B - EUR 2.18Euro Bond Fund I - EUR 0.76Euro Corporate Bond Fund A - EUR 1.22Euro Corporate Bond Fund B - EUR 2.22Euro Corporate Bond Fund I - EUR 0.80Euro Strategic Bond Fund A - EUR 1.24Euro Strategic Bond Fund B - EUR 2.24Euro Strategic Bond Fund I - EUR 0.82European Currencies High Yield Bond Fund A - EUR 1.42European Currencies High Yield Bond Fund B - EUR 2.41European Currencies High Yield Bond Fund I - EUR 1.00Global Bond Fund A - USD 1.23Global Bond Fund B - USD 2.23Global Bond Fund I - USD 0.80Select Global Convertible Bond (Euro) Fund A - EUR 1.40Select Global Convertible Bond (Euro) Fund B - EUR 2.40Select Global Convertible Bond (Euro) Fund I - EUR 0.94Select Global Convertible Bond (USD) Fund A - USD 1.62Select Global Convertible Bond (USD) Fund B - USD 2.61Select Global Convertible Bond (USD) Fund I - USD 1.14Short Maturity Euro Bond Fund A - EUR 1.17Short Maturity Euro Bond Fund B - EUR 2.17Short Maturity Euro Bond Fund I - EUR 0.76US Bond Fund A - USD 1.19US Bond Fund B - USD 2.19US Bond Fund I - USD 0.77US Dollar Short Duration Fund A - USD 0.82US Dollar Short Duration Fund B - USD 1.82US Dollar Short Duration Fund I - USD 0.40US High Yield Bond Fund A - USD 1.35US High Yield Bond Fund B - USD 2.36US High Yield Bond Fund I - USD 0.94US High Yield Bond Fund AX - USD (as of 3 November 2003) 1.11US High Yield Bond Fund BX - USD (as of 3 November 2003) 1.97US High Yield Bond Fund IX - USD (as of 3 November 2003) 0.78Euro Liquidity Fund A - EUR 0.56Euro Liquidity Fund AX - EUR 0.56Euro Liquidity Fund B - EUR 1.32Euro Liquidity Fund I - EUR 0.41Euro Liquidity Fund IX - EUR 0.42Euro Liquidity Fund M - EUR 0.20Euro Liquidity Fund MX - EUR (as of 21 July 2003) 0.20Sterling Liquidity Fund A - GBP 0.60Sterling Liquidity Fund B - GBP 1.35Sterling Liquidity Fund I - GBP 0.45Sterling Liquidity Fund IX - GBP 0.45Sterling Liquidity Fund M - GBP (as of 21 July 2003) 0.20Sterling Liquidity Fund MX - GBP (as of 18 July 2003) 0.20US Dollar Liquidity Fund A - USD 0.80US Dollar Liquidity Fund AX - USD 0.80US Dollar Liquidity Fund B - USD 0.80US Dollar Liquidity Fund BX - USD 0.80US Dollar Liquidity Fund I - USD 0.40US Dollar Liquidity Fund IX - USD 0.40US Dollar Liquidity Fund M - USD (as of 18 July 2003) 0.20US Dollar Liquidity Fund MX - USD 0.20Select Global Diversified (Euro) Fund A - EUR 1.87Select Global Diversified (Euro) Fund B - EUR 2.87Select Global Diversified (Euro) Fund I - EUR 1.30Select Global Diversified (USD) Fund A - USD 1.87Select Global Diversified (USD) Fund B - USD 2.86Select Global Diversified (USD) Fund I - USD 1.30

Appendix 1: Fund Expense Ratios*


* Fund expense ratios are calculated net of the waiver.

Morgan Stanley SICAV annual report 2003

CN AR SICAV 03

morgan stanley sicav · morgan stanley sicav 31 december 2003 2 asian equity fund investment aims...

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