semi-annual report 2005 - morgan stanley952347-1-007 x-cat 8/22/05 17:51 page ii 1 morgan stanley...

5Morgan Stanley Investment Management

Semi-annual report 2005Morgan Stanley SICAV

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

Table of contents

1 Shareholders’ Information

2 Equity Funds

49 Bond Funds

85 Liquidity Funds

89 Asset Allocation Funds

95 Currency Exchange Contracts and Futures Contracts

98 Financial Statements

125 Other Information

Rep

ort

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

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

1 Shareholders’ information

STATEMENT OF INVESTMENTS

Equity Funds

2 Asian Equity Fund

4 Asian Property Fund

6 Emerging Europe and Middle East Equity Fund

8 Emerging Markets Equity Fund

11 European Equity Fund

13 European Property Fund

15 European Small Cap Value Fund

17 European Value Equity Fund

19 Global Brands Fund

20 Global Small Cap Value Fund

23 Global Value Equity Fund

25 Japanese Equity Growth Fund

29 Japanese Value Equity Fund

31 Latin American Equity Fund

33 US Equity Fund

36 US Equity Growth Fund

39 US Property Fund

41 US Small Cap Growth Fund

44 US Value Equity Fund

47 World Equity Fund

Bond Funds

49 Emerging Markets Debt Fund

52 Euro Bond Fund

55 Euro Corporate Bond Fund

58 Euro Strategic Bond Fund

61 European Currencies High Yield Bond Fund

64 Global Bond Fund

68 Global Convertible Bond (Euro) Fund

71 Global Convertible Bond (USD) Fund

74 Short Maturity Euro Bond Fund

76 US Bond Fund

82 US Dollar Short Duration Fund

Liquidity Funds

85 Euro Liquidity Fund

87 US Dollar Liquidity Fund

Asset Allocation Funds

89 Global Diversified (Euro) Fund

92 Global Diversified (USD) Fund

CURRENCY EXCHANGE CONTRACTS AND FUTURES CONTRACTS

95 Open forward foreign currency exchange contracts

97 Open futures contracts

FINANCIAL STATEMENTS

98 Statement of assets and liabilities

103 Statement of changes in number of shares

109 Statement of operations and changes in net assets

115 Statement of share and net assets statistics

120 Notes to the financial statements

OTHER INFORMATION

125 Directors and service providers

126 Paying and information agents

127 Appendix 1: fund expense ratios

Morgan Stanley SICAV 30 June 2005

Table of contents

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1 Morgan Stanley SICAV 30 June 2005

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

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

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

The Company’s financial year end is 31 December.

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

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

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

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

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

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

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

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

Shareholders’ information

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

Asian Equity Fund

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

Total for South Korea 23.48

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

Total for Hong Kong 22.04

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

IA B

0

1

2

3

4

5

64.62% 4.24% 3.74% 5.40%

I

A

B

I A B

Fund (net of expenses) Class I shares

Fund (net of expenses) Class A shares

Fund (net of expenses) Class B shares

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

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

INVESTMENT AIMS*

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

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

Investment Holding

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

Morgan Stanley SICAV 30 June 2005 2

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

Marketvalue

% of netassets

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


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

Investment Holding

Investment Holding

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

Total for Taiwan 21.61

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

Total for Thailand 9.62

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

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

Total for Singapore 8.69

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

Total for China 5.03

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

Total for Indonesia 3.45

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

Total for Malaysia 3.28

Total Investment Securities 371,850,679 97.20

Total NAV 382,566,058 100.00

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

Asian Equity Fund

Marketvalue

% of netassets

Marketvalue

% of netassets

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

Asian Property Fund


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


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

Total for Japan 26.05

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

Total for Australia 25.32

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

Total for Singapore 6.44

IA B

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

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

I

A

B

I A B




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


INVESTMENT AIMS

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


Investment Holding


Marketvalue

% of netassets

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

Asian Property Fund



Investment Holding

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


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



Total NAV 285,573,251 100.00


Marketvalue

% of netassets

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



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

Total for Turkey 25.33

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

Total for Russian Federation 18.67

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

Total for Morocco 8.27

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

Total for Israel 7.58

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

Total for Poland 6.59

0

5

10

15

20

25

3028.19% 27.80% 27.43% 19.38%

I

A

B

I A B




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

0

5

10

15

20

25

304.73% 4.69% 19.38%

IX

AX

B

IX AX

Fund (net of expenses) Class IX shares

Fund (net of expenses) Class AX shares

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


INVESTMENT AIMS

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

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

Investment Holding

Emerging Europe & Middle East Equity Fund

Marketvalue

% of netassets

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


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

Investment Holding

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

Total for Egypt 4.65

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

Total for Jordania 4.46

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

Total for Tunisia 4.40

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

Total for Lebanon 4.21

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

Total for Oman 2.97

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

Total for Lebanon 2.95

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

Total for Hungary 2.91

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

Total for Uzbekistan 1.15

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

Total for Ukraine 0.45

Czech RepublicZentiva 20,200 601,933 0.37

Total for Czech Republic 0.37


Total NAV 162,067,324 100.00


Emerging Europe & Middle East Equity Fund

Marketvalue

% of netassets

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


Emerging Markets Equity Fund

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


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

Total for Taiwan 11.98

0

1

2

3

4

5

65.39% 5.10% 4.67% 6.00%

I

A

B

I A B




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

0

1

2

3

4

5

63.65% 3.60% 6.00%

IX

AX

IX AX



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


INVESTMENT AIMS

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


Investment Holding


Marketvalue

% of netassets

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




Investment Holding

Investment Holding

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

Total for South Africa 11.30

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

Total for Brazil 11.27

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

Total for Mexico 10.27

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

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

Total for Russian Federation 8.41

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

Total for India 7.54

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

Total for Turkey 4.57

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

Marketvalue

% of netassets

Marketvalue

% of netassets

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




Investment Holding

Investment Holding

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


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


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


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


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


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

Total for Egypt 1.38

ChileEnersis ADR 468,700 4,986,968 1.20

Total for Chile 1.20

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

Total for Indonesia 0.70

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


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

Total for Colombia 0.44

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

Total for Austria 0.41

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

Total for Morocco 0.32

ArgentinaRenault Argentina 2 1 0.00

Total for Argentina 0.00

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

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

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

Total for Brazil 0.00

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


Total NAV 417,221,531 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

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


European Equity Fund

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

Total for United Kingdom 31.26

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

Total for Netherlands 15.29

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

Total for France 14.82

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

Total for Switzerland 10.59

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

Total for Germany 9.00

I

A

B

10.15% 9.81% 9.30% 11.84%12

10

8

6

4

2

0I A B




MSCI Europe (Net) Index (expressed in Euro)


INVESTMENT AIMS

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


Investment Holding


Marketvalue

% of netassets

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

European Equity Fund


Investment Holding

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

Total for Spain 5.28

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

Total for Sweden 3.05

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

Total for Italy 2.84

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

Total for Finland 2.69

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

Total for Denmark 2.41

AustriaTelekom Austria 140,809 2,279,698 0.93



Total NAV 246,080,308 100.00


Marketvalue

% of netassets

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


European Property Fund

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


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


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


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


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


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


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


I

A

B

20

15

10

5

0

15.65% 15.26% 14.68% 16.15%

I A B




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

IX

AX

20

15

10

5

0

3.05% 3.00% 16.15%

IX AX



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


INVESTMENT AIMS

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


Investment Holding


Marketvalue

% of netassets

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

European Property Fund


Investment Holding

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


GermanyIVG Immobilien 524,459 8,055,691 2.08


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

Total for Belgium 0.58

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



Total NAV 387,916,646 100.00


Marketvalue

% of netassets

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


European Small Cap Value Fund

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


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


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


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


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

I

A

B

20

15

10

5

0

13.89% 13.46% 12.92% 17.41%

I A B




MSCI European Small Cap Index (expressed in Euro)

IX

AX

20

15

10

5

0

4.30% 4.25% 17.41%

IX AX



MSCI European Small Cap Index (expressed in Euro)


INVESTMENT AIMS

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


Investment Holding


Marketvalue

% of netassets

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

European Small Cap Value Fund


Investment Holding

Investment Holding

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


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


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


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

Total for Greece 4.84

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

Total for Norway 4.45

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


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

Total for Ireland 3.69

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


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


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


AustriaAndritz 11,161 877,030 1.50


LuxembourgSBS Broadcasting 9,385 368,313 0.63

Total for Luxembourg 0.63


Total NAV 58,630,296 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

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


European Value Equity Fund

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


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


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


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


I

A

B

11.21% 10.86% 10.29% 11.84%12

10

8

6

4

2

0I A B




MSCI Europe (Net) Index (expressed in Euro)


INVESTMENT AIMS

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


Investment Holding


Marketvalue

% of netassets

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

European Value Equity Fund


Investment Holding

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


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


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


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


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


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


AustriaTelekom Austria 199,815 3,235,005 0.84


FinlandSampo 244,411 3,145,570 0.82


SwedenNordea Bank 289,279 2,163,950 0.56


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



Total NAV 383,711,754 100.00


Investment HoldingMarket

value% of net

assets

Marketvalue

% of netassets

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

Global Brands Fund

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


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

Total for United States of America 18.25

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


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


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


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


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


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


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

Total for Canada 2.49

Total Investment Securities 1,540,006,724 95.20

Total NAV 1,617,723,035 100.00

3.56% 3.20% 2.68% (0.70)%4

3

2

1

0

-1I A B

I

A

B




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


INVESTMENT AIMS

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


Investment Holding



Marketvalue

% of netassets

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



Investment Holding


Global Small Cap Value Fund

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

2.58% 2.16% 1.69% 1.46%3

2

1

0I A B

I

A

B




MSCI World Small Cap Index (expressed in US dollars)


INVESTMENT AIMS

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

Marketvalue

% of netassets

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




Investment Holding

Investment Holding

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


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


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


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


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


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


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


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


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


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

Total for New Zealand 2.00

Marketvalue

% of netassets

Marketvalue

% of netassets

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




Investment Holding

Investment Holding

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

Total for Norway 1.98

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


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


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

Total for Canada 1.38

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


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


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


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

Total for Bermuda 1.09

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

Total for Cayman Islands 0.94

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


AustriaAndritz 16,976 1,607,905 0.84


SpainMiquel Y Costas 20,390 797,525 0.42


IsraelLipman Electronic Engineering 23,100 732,963 0.38


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


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


Total transferable securities admitted to official exchange listing or dealt in on another regulated market 97.01

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

GermanySCS Standard Computersysteme (1) 1,795 0 0.00


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


Total NAV 190,586,306 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

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


Global Value Equity Fund

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


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


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


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

-0.5

-1.0

-1.5

-2.0

-2.5I A B

I

A

B




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


INVESTMENT AIMS

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


Investment Holding


Marketvalue

% of netassets

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

Global Value Equity Fund


Investment Holding

Investment Holding

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


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


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


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


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


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


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


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


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

Total for New Zealand 0.98

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

Total for Bermuda 0.96

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


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


Total Investment Securities 1,210,317,450 97.24

Total NAV 1,244,633,778 100.00


Marketvalue

% of netassets

Marketvalue

% of netassets

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

Japanese Equity Growth Fund

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

Total for Electronic Equipment & Instruments 14.75

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

Total for Chemicals 7.02

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

Total for Auto Components 5.26

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

I

A

B

10

8

6

4

2

0

9.19% 8.80% 8.29% 3.15%

I A B




TOPIX Index (expressed in Japanese Yen)

IX

AX

10

8

6

4

2

0

4.16% 4.10% 3.15%

IX AX



TOPIX Index (expressed in Japanese Yen)


INVESTMENT AIMS

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

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

Investment Holding



Marketvalue

% of netassets

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



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

Investment Holding

Investment Holding

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

Total for Specialty Retail 4.08

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

Total for Commercial Services & Supplies 3.81

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

Total for Electrical Components & Equipment 3.77

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

Total for Real Estate 3.76

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

Total for IT Services 3.74

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

Total for Machinery 4.29

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

Total for Automobile 3.48

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

Total for Hotels, Restaurants & Leisure 3.35

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

Total for Electric Appliances 3.34

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

Total for Software 3.25

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

Total for Office Electronics 2.92

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

Total for Food Product 2.87

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

Total for Health Care Equipment & Supplies 2.06

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

Total for Pharmaceuticals 1.83

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

Total for Trading Companies & Distributors 1.74

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

Total for Food & Staples Retailing 1.73

Marketvalue

% of netassets

Marketvalue

% of netassets

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



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

Investment Holding

Investment Holding

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

Total for Semiconductors and Semiconductor Equipment 1.65

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

Total for Leisure Equipment & Products 1.44

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

Total for Services 1.43

SemiconductorsRohm 24,600 263,220,000 1.24

Total for Semiconductors 1.24

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

Total for Air Freight & Logistics 1.22

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

Total for Media 1.22

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

Total for Road & Rail 1.12

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

Total for Other Products 1.01

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

Total for Textiles & Apparel 0.91

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

Total for Multi-line Retail 0.90

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

Total for Wireless Telecommunication Services 0.88

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

Total for Metals & Mining 0.86

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

Total for Personal Products 0.68

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

Total for Retail Trade 0.65

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

Total for Containers & Packaging 0.59

Communications EquipmentNextCom KK 243 125,145,000 0.59

Total for Communications Equipment 0.59

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

Total for Health Care Providers & Services 0.58

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

Total for Food Retail 0.52

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

Total for Glass & Ceramics Products 0.38

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semi-annual report 2005 - morgan stanley952347-1-007 x-cat 8/22/05 17:51 page ii 1 morgan stanley...

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