N-CSR 1 intlequityfinal.htm VANGUARD INTERNATIONAL EQUITY INDEX FUNDS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT

OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-5972

 

Name of Registrant: Vanguard International Equity Index Funds

 

 

Address of Registrant:

P.O. Box 2600

 

Valley Forge, PA 19482

 

 

 

 

Name and address of agent for service:

Heidi Stam, Esquire

 

P.O. Box 876

 

Valley Forge, PA 19482

 

 

 

 

Registrant’s telephone number, including area code: (610) 669-1000

 

Date of fiscal year end: October 31

 

Date of reporting period: November 1, 2007 – October 31, 2008

 

Item 1: Reports to Shareholders


 

>

For the fiscal year ended October 31, 2008, the Investor Shares of Vanguard FTSE All-World ex-US Index Fund posted a –48.32% return.

>

The fund closely tracked its benchmark index and delivered returns that were close to the average return of its mutual fund peers.

>

A global credit crisis and fears of a global economic slowdown drove down stock values worldwide. A rising U.S. dollar against most currencies further lowered returns for U.S. investors.

 

 

Contents

 

 

 

Your Fund’s Total Returns

1

President’s Letter

2

Fund Profile

8

Performance Summary

10

Financial Statements

12

Your Fund’s After-Tax Returns

50

About Your Fund’s Expenses

51

Glossary

53

 

 

 

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

 

Your Fund’s Total Returns

 

 

Fiscal Year Ended October 31, 2008

 

 

 

Ticker

Total

 

Symbol

Returns

Vanguard FTSE All-World ex-US Index Fund

 

 

Investor Shares

VFWIX

–48.32%

Institutional Shares1

VFWSX

–48.18

ETF Shares2

VEU

 

Market Price

 

–47.85

Net Asset Value

 

–48.23

FTSE All-World ex US Index

 

–48.37

Average International Fund3

 

–47.97

 

 

Your Fund’s Performance at a Glance

 

 

 

October 31, 2007, Through October 31, 2008

 

 

 

 

 

 

Distributions Per Share

 

Starting

Ending

Income

Capital

 

Share Price

Share Price

Dividends

Gains

Vanguard FTSE All-World ex-US Index Fund

 

 

 

 

Investor Shares

$24.91

$12.77

$0.185

$0.000

Institutional Shares

124.76

64.06

1.044

0.000

ETF Shares

63.32

32.50

0.510

0.000

 

 

1 This class of shares carries lower expenses and is available for a minimum initial investment of $5 million.

2 Vanguard ETF™ Shares are traded on the NYSE Arca exchange and are available only through brokers. The table shows the ETF returns based on both the NYSE Arca market price and the net asset value for a share. U.S. Pat. No. 6,879,964 B2; 7,337,138.

3 Derived from data provided by Lipper Inc.

 

 

1


 

President’s Letter

 

Dear Shareholder,

After several years of generous returns, international markets dropped steeply during the past 12 months as a global credit crisis caused investors to pull back from riskier securities, such as stocks. Vanguard FTSE All-World ex-US Index Fund’s Investor Shares returned –48.32%.

The bear market spared no country, but the fund’s emerging markets holdings suffered the most, losing more than half their value. Losses among developed European and Pacific markets were a bit less severe, but still deep.

The FTSE All-World ex-US Index Fund tracks the FTSE All-World ex US Index, a benchmark for global stock performance outside U.S. borders. The fund’s return was in line with the return of its benchmark and slightly behind that of its peer group.

Stock prices fell sharply in global upheaval

Global stock markets started the 12-month period near all-time highs but then declined sharply, laid low by the financial crisis that originated in the fixed income markets. The descent traced a series of jagged ups and downs. During the week ended October 10, for example, the U.S. stock market returned about –18%. When Wall Street opened the following Monday, stocks surged, returning more than 10% over the next six-and-a-half hours. For the full 12 months, the broad U.S. stock market returned –36.43%.

 

 

2

Bond market averages masked disparate returns

The broad U.S. taxable bond market registered an unremarkable return of 0.30% for the 12 months, but by its own typically sedate standards, the dislocations were extreme. The strong performance of U.S. Treasury and government securities was offset by double-digit declines in the corporate bond market. These dynamics led to unusually large differences between the yields of Treasuries and their corresponding private sector securities—both a reflection and a cause of the credit market’s distress. Despite their generally high creditworthiness, municipal bonds also fell in price, with the broad tax-exempt market registering a 12-month return of –3.30%.

 

The U.S. Federal Reserve Board responded to the turmoil with new lending programs and a dramatic easing of monetary policy. Over the full 12 months, the Fed reduced its target for the federal funds rate from 4.50% to 1.00%.

Investors turned bearish in every corner of the globe

World stock markets retreated throughout the fiscal year, including the developed European markets that make up about half of the FTSE All-World ex-US Index Fund. The decline of the euro (–10%) and British pound (–25%) against the U.S. dollar in currency markets during the fiscal year amplified losses for U.S.-based investors.

 

 

Market Barometer

 

 

 

 

 

Average Annual Total Returns

 

Periods Ended October 31, 2008

 

One Year

Three Years

Five Years

Stocks

 

 

 

MSCI All Country World Index ex USA (International)

–48.27%

–3.93%

5.05%

Russell 1000 Index (Large-caps)

–36.80

–5.51

0.37

Russell 2000 Index (Small-caps)

–34.16

–4.79

1.57

Dow Jones Wilshire 5000 Index (Entire market)

–36.43

–5.10

0.81

 

 

 

 

Bonds

 

 

 

Lehman U.S. Aggregate Bond Index (Broad taxable market)

0.30%

3.60%

3.48%

Lehman Municipal Bond Index

–3.30

1.71

2.73

Citigroup 3-Month Treasury Bill Index

2.31

3.93

3.10

 

 

 

 

CPI

 

 

 

Consumer Price Index

3.66%

2.83%

3.20%

 

 

3

Each of the region’s three largest markets—the United Kingdom (–47%), France (–46%), and Germany (–46%), which together represented almost one-third of the index, on average—dropped significantly. In Europe, Switzerland (–32%) was the only market that didn’t fall by at least a third.

Japan, by far the largest market in the Pacific region and the second-largest market in the fund, on average, retreated –37% in U.S. dollar terms, a less severe loss than that experienced by Japanese investors, who saw the Japanese yen rise nearly 17% against the dollar during the period. The other major Pacific markets—Australia, Hong Kong, and Singapore—lost more than half their value.

Canada, which represented the fifth-largest market weighting in the fund, on average, during the period, didn’t escape the downward pull, as it lost –45%. That result was worse for Canadian investors because of the U.S. dollar’s rise of 27% against the Canadian dollar during the year.

True to their more volatile reputation, emerging markets, which on average made up about 17% of the fund, lost the most among international stocks during the period after achieving stellar gains in recent years. All were hit hard by expectations that a U.S. recession would hurt their export-driven economies. South Korea (–63%) and China (–68%) weighed down the fund the most. But no country

 

 

Expense Ratios1

 

 

 

 

Your Fund Compared With Its Peer Group

 

 

 

 

 

 

 

 

Average

 

Investor

Institutional

ETF

International

 

Shares

Shares

Shares

Fund

FTSE All-World ex-US Index Fund

0.40%

0.15%

0.25%

1.48%

 

 

1 The fund expense ratios shown are from the prospectus dated August 29, 2008. For the fiscal year ended October 31, 2008, the fund’s expense ratios were 0.35% for Investor Shares, 0.10% for Institutional Shares, and 0.20% for ETF Shares. The peer-group expense ratio is derived from data provided by Lipper Inc. and captures information through year-end 2007.

 

4

was spared outsized losses, including Brazil (–53%), Taiwan (–46%), India (–60%), and Russia (–59%).

Financial companies had the biggest impact

Across virtually all markets, financial stocks had the biggest negative impact. Financials outside the United States represented about a quarter of the fund’s assets and lost –56% worldwide, accounting for about a third of the fund’s negative return. As in the United States, commercial banks, brokerages, and other financial firms grappled with the unprecedented global credit squeeze.

The next two largest sectors in the fund, on average—materials (–57%) and energy (–44%)—suffered from the quick reversal of expectations for the global economy. Oil prices dropped precipitously after peaking at all-time highs in the summer, and the prices of other commodities fell in similarly dramatic fashion.

Other global sectors faced similar headwinds during the global slowdown, including industrials (–55%), information technology (–49%), and telecommunication services (–43%). Consumer staples (–33%) and utilities (–35%), typically less volatile during bear markets, and health care (–21%) were least affected by the downdraft.

 

 

Total Returns

 

March 8, 2007,1 Through October 31, 2008

 

 

Average

 

Annual Return

FTSE All-World ex-US Index Fund Investor Shares

–23.44%

FTSE All-World ex US Index

–23.47

Average International Fund2

–24.98

 

The figures shown represent past performance, which is not a guarantee of future results. (Curre nt performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost.

 

 

1 Share-class inception.

2 Derived from data provided by Lipper Inc.

 

 

5

The funds’ long-term performance is in line with the markets’

As the table on page 5 shows, the FTSE All-World ex-US Index Fund has met its objective of tracking its benchmark since its inception.

The fund’s return has been slightly better than that of its target index, mostly because of fair-value pricing, which allows the fund to calculate its net asset value based on real-time developments not reflected in closing prices set in overseas markets that operate in different time zones. When fair-value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its index. This discrepancy corrects itself when market prices reflect fair value, usually the next day.

An index fund’s performance may also differ slightly from the return of its target benchmark because the fund may hold a slightly different roster of securities than those listed in the benchmark. Of course, the most consistent performance divergence arises from the operating costs incurred by an index fund—costs not reflected in the return from a benchmark.

Vanguard’s Quantitative Equity Group has managed index funds for more than three decades. Its disciplined execution of the fund’s indexing mandate, combined with the fund’s extremely low costs, can help you execute a long-term strategy of seeking to capture nearly all of the returns from international markets.

International investing still offers valuable diversification

After enjoying several years of strong returns with few bumps along the way, investors in international stocks were harshly reminded in the past year that a bear market can come at any time—and once in a while it can come with unusual severity. Such was the case with the credit crisis of 2008, which has had repercussions that unsettled even the most seasoned investors.

 

6

Nevertheless, the dramatic increase of international commerce in recent years, particularly in less developed nations, continues to offer long-term growth possibilities for patient investors.

That is why it is important to have a well-thought-out investment strategy based on a diversified mix of stock, bond, and money market mutual funds that fits your goals, time horizon, and risk tolerance. For those who can tolerate the extra volatility that sometimes comes with overseas investing, the FTSE All-World ex-US Index Fund remains a cost-effective way to add an extra element of diversification to your portfolio and thus help you maintain a durable long-term investment plan.

Thank you for your confidence in Vanguard.

Sincerely,

 


 

F. William McNabb III

President and Chief Executive Officer

November 18, 2008

 

 

Vanguard FTSE All-World ex-US ETF

Premium/Discount: March 2, 20071–October 31, 2008

 

 

 

Market Price Above or

Market Price Below

 

Equal to Net Asset Value

 

Net Asset Value

 

Number

Percentage

Number

Percentage

Basis Point Differential2

of Days

of Total Days

of Days

of Total Days

0–24.9

132

31.21%

23

5.44%

25–49.9

184

43.49

6

1.42

50–74.9

59

13.95

2

0.47

75–100.0

4

0.95

0

0.00

>100.0

13

3.07

0

0.00

Total

392

92.67%

31

7.33%

 

 

1 Inception.

2 One basis point equals 1/100 of a percentage point.

 

 

7

FTSE All-World ex-US Index Fund

 

Fund Profile

As of October 31, 2008

 

Portfolio Characteristics

 

 

 

 

Target

 

Fund

Index1

Number of Stocks

2,205

2,217

Turnover Rate

7%

Expense Ratio (10/31/2007)2

 

Investor Shares

0.40%

 

Institutional Shares

0.15%

 

ETF Shares

0.25%

 

Short-Term Reserves

0.5%

 

 

Sector Diversification (% of equity exposure)

 

 

Target

 

Fund

Index1

Consumer Discretionary

9.1%

9.1%

Consumer Staples

9.1

9.1

Energy

11.2

11.3

Financials

24.4

24.3

Health Care

7.3

7.3

Industrials

9.7

9.8

Information Technology

6.3

6.2

Materials

9.1

9.2

Telecommunication Services

7.5

7.4

Utilities

6.3

6.3

 

 

Ten Largest Holdings3 (% of total net assets)

 

 

 

Royal Dutch Shell PLC

integrated oil

 

 

and gas

1.6%

BP PLC

integrated oil

 

 

and gas

1.4

Nestle SA (Registered)

packaged foods

 

 

and meats

1.4

HSBC Holdings PLC

diversified banks

1.3

Total SA

integrated oil

 

 

and gas

1.2

Novartis AG (Registered)

pharmaceuticals

1.0

Roche Holdings AG

pharmaceuticals

1.0

Vodafone Group PLC

wireless

 

 

telecommunications

0.9

Toyota Motor Corp.

automobile

 

 

manufacturers

0.9

GlaxoSmithKline PLC

pharmaceuticals

0.9

Top Ten

 

11.6%

 

 

Allocation by Region (% of equity exposure)

 


 

1 FTSE All-World ex US Index.

2 The expense ratios shown are from the prospectus dated August 29, 2008. For the fiscal year ended October 31, 2008, the expense ratios were 0.35% for Investor Shares, 0.10% for Institutional Shares, and 0.20% for ETF Shares.

3 The holdings listed exclude any temporary cash investments and equity index products. See the glossary of investment terms.

 

 

8

FTSE All-World ex-US Index Fund

 

 

Market Diversification (% of equity exposure)

 

 

Target

 

Fund

Index1

Europe

 

 

United Kingdom

16.0%

16.1%

France

8.5

8.8

Germany

6.4

6.4

Switzerland

6.2

6.3

Spain

3.4

3.4

Italy

2.8

2.8

Netherlands

1.8

1.8

Sweden

1.5

1.5

Finland

1.0

1.0

Other Europe

3.4

3.0

Subtotal

51.0%

51.1%

Pacific

 

 

Japan

17.3%

16.8%

Australia

4.6

4.6

Hong Kong

2.3

1.8

Other Pacific

0.9

0.9

Subtotal

25.1%

24.1%

Emerging Markets

 

 

South Korea

2.6%

2.6%

Brazil

2.6

2.7

Taiwan

2.2

2.2

China

2.2

2.6

India

1.6

1.7

South Africa

1.5

1.5

Russia

1.3

1.2

Mexico

1.0

1.1

Other Emerging

3.0

3.3

Subtotal

18.0%

18.9%

North America

 

 

Canada

5.9%

5.9%

 

 

1 FTSE All-World ex US Index.

 

 

9

FTSE All-World ex-US Index Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

Cumulative Performance: March 8, 2007–October 31, 2008

Initial Investment of $10,000

 


 

 

 

 

Average Annual Total Returns

Final Value

 

Periods Ended October 31, 2008

of a $10,000

 

One Year

Since Inception1

Investment

FTSE All-World ex-US Index Fund

 

 

 

Investor Shares2

–48.32%

–23.44%

$6,437

FTSE All-World ex US Index

–48.37

–23.47

6,432

Average International Fund3

–47.97

–24.98

6,224

 

 

 

 

 

Final Value of

 

 

Since

a $5,000,000

 

One Year

Inception1

Investment

FTSE All-World ex-US Index Fund

 

 

 

Institutional Shares2

–48.18%

–28.61%

$3,011,507

FTSE All-World ex US Index

–48.37

–29.28

2,968,715

 

 

 

 

 

Final Value

 

 

Since

of a $10,000

 

One Year

Inception1

Investment

FTSE All-World ex-US Index Fund

 

 

 

ETF Shares Net Asset Value

–48.23%

–22.19%

$6,583

FTSE All-World ex US Index

–48.37

–22.86

6,489

 

 

1 Performance for the fund and its comparative standards is calculated since the following inception dates: March 8, 2007, for the Investor Shares, April 30, 2007, for the Institutional Shares, and March 2, 2007, for the ETF Shares.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares held for less than two months or, for the Investor Shares, the account service fee that may be applicable to certain accounts with balances below $10,000.

3 Derived from data provided by Lipper Inc.

 

10

FTSE All-World ex-US Index Fund

 

 

Cumulative Returns of ETF Shares: March 2, 2007–October 31, 2008

 

 

 

 

Cumulative

 

Since Inception1

FTSE All-World ex-US Index Fund ETF Shares Market Price

–33.56

FTSE All-World ex-US Index Fund ETF Shares Net Asset Value

–34.17

FTSE All-World ex US Index

–35.11

 

 

Fiscal-Year Total Returns (%): March 8, 2007–October 31, 2008

 


 

Average Annual Total Returns: Periods Ended September 30, 2008

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

 

 

Since

 

Inception Date

One Year

Inception

FTSE All-World ex-US Index Fund

 

 

 

Investor Shares2

3/8/2007

–28.98%

–11.11%

Institutional Shares2

4/30/2007

–28.80

–16.21

ETF Shares

3/2/2007

 

 

Market Price

 

–28.86

–9.64

Net Asset Value

 

–28.87

–9.76

 

 

1 Performance for the fund and its comparative standards is calculated since the ETF Shares’ inception on March 2, 2007.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares held for less than two months or, for the Investor Shares, the account service fee that may be applicable to certain accounts with balances below $10,000.

Note: See Financial Highlights tables for dividend and capital gains information.

 

 

11

FTSE All-World ex-US Index Fund

 

Financial Statements

 

Statement of Net Assets

As of October 31, 2008

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

Common Stocks (98.7%)

 

 

Argentina (0.1%)

 

 

 

 

Tenaris SA ADR

57,010

1,174

 

 

Petrobras Energia

 

 

 

 

Participaciones SA ADR

46,561

289

*

 

Telecom Argentina SA ADR

14,520

85

 

^

Banco Macro Bansud SA ADR

11,670

82

 

 

 

 

1,630

Australia (4.5%)

 

 

 

 

BHP Billiton Ltd.

751,795

14,443

 

 

Commonwealth Bank

 

 

 

 

of Australia

293,833

8,032

 

 

National Australia Bank Ltd.

365,305

5,927

 

 

Westpac Banking Corp., Ltd.

415,801

5,705

 

 

Australia & New Zealand

 

 

 

 

Bank Group Ltd.

432,536

5,070

 

 

Woolworths Ltd.

271,523

5,062

 

 

Westfield Group

425,546

4,700

 

 

Rio Tinto Ltd.

75,113

3,886

 

 

QBE Insurance Group Ltd.

197,248

3,365

 

 

Woodside Petroleum Ltd.

113,829

3,216

 

 

CSL Ltd.

121,942

2,966

 

 

Telstra Corp. Ltd.

976,238

2,687

 

 

St. George Bank Ltd.

126,428

2,365

 

 

Wesfarmers Ltd.

144,217

2,073

 

 

Origin Energy Ltd.

191,688

2,010

 

 

Brambles Ltd.

314,874

1,680

 

 

Foster’s Group Ltd.

424,949

1,624

 

 

AMP Ltd.

416,960

1,517

 

 

Newcrest Mining Ltd.

101,456

1,395

 

^

Macquarie Group, Ltd.

59,097

1,172

 

 

Santos Ltd.

127,409

1,154

 

 

Suncorp-Metway Ltd.

210,505

1,133

 

 

Insurance Australia

 

 

 

 

Group Ltd.

398,603

1,010

 

 

Stockland

375,215

1,009

 

 

Orica Ltd.

77,148

1,003

 

 

AGL Energy Ltd.

101,327

952

 

 

Transurban Group

264,087

948

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

*

 

Fortescue Metals

 

 

 

 

Group Ltd.

456,254

902

 

 

AXA Asia Pacific

 

 

 

 

Holdings Ltd.

294,591

869

 

 

Oil Search Ltd.

254,082

770

 

 

Australian Stock

 

 

 

 

Exchange Ltd.

36,910

741

 

 

Sonic Healthcare Ltd.

81,084

741

 

 

Amcor Ltd.

186,555

720

 

^

Macquarie

 

 

 

 

Infrastructure Group

543,554

712

 

 

Incitec Pivot Ltd.

260,320

698

 

 

Coca-Cola Amatil Ltd.

128,641

694

 

 

Computershare Ltd.

119,406

675

 

 

Wesfarmers, Ltd. Price

 

 

 

 

Protected Shares

43,573

629

 

^

Leighton Holdings Ltd.

37,530

624

 

 

Tatt’s Group, Ltd.

350,842

588

 

 

Tabcorp Holdings Ltd.

126,790

581

 

 

Toll Holdings Ltd.

143,500

573

 

 

Lion Nathan Ltd.

95,845

566

 

 

CFS Gandel Retail Trust

408,761

550

 

 

Crown Ltd.

122,578

549

 

 

Bendigo Bank Ltd.

61,227

540

 

 

WorleyParsons Ltd.

52,910

532

 

 

Cochlear Ltd.

13,918

528

 

 

Lend Lease Corp.

112,946

523

 

 

Metcash Ltd.

190,778

515

 

 

BlueScope Steel Ltd.

160,055

471

 

 

GPT Group

924,150

462

 

 

Alumina Ltd.

299,700

427

 

 

OZ Minerals Ltd.

660,765

415

 

 

Boral Ltd.

131,437

396

 

 

OneSteel Ltd.

167,769

385

 

 

Sims Group Ltd.

38,851

373

 

 

Dexus Property Group NPV

729,329

363

 

 

Macquarie Goodman Group

534,163

337

 

 

Qantas Airways Ltd.

203,327

330

 

 

CSR Ltd.

226,374

329

 

 

Harvey Norman Holdings Ltd.

189,282

327

 

 

Goodman Fielder Ltd.

292,518

325

 

 

12

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Aristocrat Leisure Ltd.

122,844

309

 

 

Commonwealth Property

 

 

 

 

Office Fund

307,289

272

 

^

Perpetual Trustees

 

 

 

 

Australia Ltd.

11,473

267

 

 

Nufarm Ltd.

36,536

264

 

 

Macquarie Airports Group

184,649

263

 

 

James Hardie Industries NV

92,158

262

 

 

Ansell Ltd.

30,051

253

 

 

Bank of Queensland Ltd.

26,721

239

 

 

Mirvac Group

361,467

237

 

 

Billabong International Ltd.

27,155

217

*

 

Paladin Resources Ltd.

110,222

169

 

 

Energy Resources

 

 

 

 

of Australia Ltd.

16,891

160

 

 

Asciano Group

114,497

160

*

 

Iluka Resources Ltd.

58,002

140

 

 

Caltex Australia Ltd.

21,694

137

 

 

Sigma Pharmaceuticals Ltd.

157,341

132

 

 

AWB Ltd.

74,081

130

 

 

Futuris Corp., Ltd.

160,282

125

 

 

Flight Centre Ltd.

13,166

123

 

 

Downer EDI Ltd.

37,372

121

 

 

SP Ausnet

159,517

118

 

 

Tower Australia Group Ltd.

77,115

108

 

 

Consolidated

 

 

 

 

Media Holdings, Ltd.

77,506

106

 

 

John Fairfax Holdings Ltd.

78,941

101

 

 

Gunns Ltd.

117,061

93

 

 

Challenger Financial

 

 

 

 

Services Group Ltd.

81,863

90

 

 

Envestra Ltd.

183,658

78

 

 

GWA International Ltd.

45,024

72

 

 

Boart Longyear Group

228,746

66

 

 

Paperlinx Ltd.

70,237

65

 

 

Macquarie Office Trust

319,897

62

 

^

Babcock & Brown Ltd.

67,448

59

 

^

West Australian

 

 

 

 

Newspaper Holdings Ltd.

13,172

54

 

 

Babcock & Brown

 

 

 

 

Infrastructure Group

382,796

49

 

 

Macquarie

 

 

 

 

CountryWide Trust

247,809

40

 

 

Spotless Group Ltd.

23,351

39

 

 

Ten Network Holdings Ltd.

43,012

39

 

 

Adelaide Brighton Ltd.

23,761

36

 

 

Corporate Express

 

 

 

 

Australia Ltd.

9,534

32

 

 

APN News & Media Ltd.

15,565

25

 

 

Australian Wealth

 

 

 

 

Management Ltd.

47,053

25

 

 

Minara Resources Ltd.

35,970

25

 

 

Australand Property Group

103,092

20

 

 

ABC Learning Centres Ltd.

44,287

16

 

 

Centro Retail Trust

197,668

15

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

*

 

Centro Properties Group

62,092

3

 

 

Austereo Group Ltd.

2,615

2

*

 

Allco Finance Group Ltd.

15,255

1

 

 

 

 

111,283

Austria (0.3%)

 

 

 

^

Erste Bank der

 

 

 

 

Oesterreichischen

 

 

 

 

Sparkassen AG

54,576

1,455

 

 

OMV AG

34,762

1,113

 

 

Telekom Austria AG

74,527

916

 

 

Voestalpine AG

35,040

855

 

 

Oesterreichische

 

 

 

 

Elektrizitaetswirtschafts

 

 

 

 

AG Class A

9,754

461

 

 

Wienerberger AG

20,251

336

 

^

Raiffeisen International

 

 

 

 

Bank-Holding AG

10,292

324

 

 

Vienna Insurance Group

11,462

309

*

 

Atrium European Real Estate

59,232

269

*

 

IMMOEAST Immobilien

 

 

 

 

Anlagen AG

152,030

183

 

 

Strabag SE

6,129

120

 

 

EVN AG

7,197

106

*

 

IMMOFINANZ AG

81,782

91

 

 

 

 

6,538

Belgium (0.5%)

 

 

 

 

KBC Bank &

 

 

 

 

Verzekerings Holding

38,369

1,650

 

^

InBev NV

39,124

1,578

 

 

Solvay SA

13,727

1,277

 

 

Delhaize Group

21,698

1,220

 

 

Belgacom SA

34,174

1,169

 

 

Groupe Bruxelles

 

 

 

 

Lambert SA

15,604

1,146

 

 

Colruyt NV

5,046

1,134

 

^

Dexia

186,644

993

 

 

UCB SA

35,757

910

 

 

Umicore

21,425

383

 

 

Compagnie

 

 

 

 

Nationale a Portefeuille

5,108

276

 

^

Fortis (Amsterdam Shares)

223,907

266

 

 

Fortis

223,801

259

 

 

Mobistar SA

2,445

162

 

 

KBC Ancora

1,912

57

 

 

 

 

12,480

Brazil (2.6%)

 

 

 

 

Petroleo Brasileiro SA

 

 

 

 

Series A ADR

292,352

6,452

 

 

Petroleo Brasileiro SA ADR

207,955

5,592

 

 

Companhia Vale do Rio

 

 

 

 

Doce Sponsored ADR

345,078

4,041

 

 

Companhia Vale do

 

 

 

 

Rio Doce ADR

279,292

3,664

 

 

Banco Bradesco SA ADR

300,787

3,519

 

13

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Banco Itau Holding

 

 

 

 

Financeira SA ADR

231,785

2,564

 

 

Petroleo Brasileiro SA Pfd.

237,246

2,556

 

 

Petroleo Brasileiro SA

159,700

2,114

 

 

Companhia Siderurgica

 

 

 

 

Nacional SA ADR

143,499

1,952

 

 

Companhia de Bebidas

 

 

 

 

das Americas ADR

45,915

1,951

 

 

Itausa-Investimentos

 

 

 

 

Itau SA

498,290

1,589

 

 

Companhia Vale do Rio

 

 

 

 

Doce Pfd. Class A

124,500

1,444

 

 

Companhia Vale

 

 

 

 

do Rio Doce

90,200

1,157

 

 

Companhia Energetica de

 

 

 

 

Minas Gerais ADR

75,596

1,150

 

 

BM&FBOVESPA SA

428,046

1,136

 

 

Banco do Brasil SA

166,923

1,102

 

 

Banco Itau Holding

 

 

 

 

Financeira SA

94,750

1,023

 

 

Embraer-Empresa

 

 

 

 

Brasileira de

 

 

 

 

Aeronautica SA ADR

47,850

1,001

 

 

Tele Norte Leste

 

 

 

 

Participacoes ADR

69,600

945

 

 

Natura Cosmeticos SA

93,723

787

 

 

Usiminas-Usinas Siderugicas

 

 

 

 

de Minas Gerais SA Pfd.

57,227

732

 

 

Gerdau SA ADR

108,100

693

 

 

Companhia Brasileira de

 

 

 

 

Distribuicao Grupo Pao

 

 

 

 

de Acucar ADR

22,966

687

 

 

Perdigao SA

47,001

683

 

 

Redecard SA

61,086

663

 

 

Companhia de Concessoes

 

 

 

 

Rodoviarias

68,376

656

 

 

Centrais Electricas

 

 

 

 

Brasileiras SA

51,734

6 20

 

 

Brasil Telecom Participacoes

 

 

 

 

SA ADR

15,971

547

 

 

Companhia Paranaense de

 

 

 

 

Energia-COPEL ADR

45,900

510

 

 

Votorantim Celulose e Papel

 

 

 

 

SA ADR

49,493

499

 

 

Metalurgica Gerdau SA

50,418

450

 

 

Banco Bradesco SA

34,500

396

 

 

Tim Participacoes SA ADR

27,237

394

 

 

Tractebel Energia SA

50,170

394

 

^

Braskem SA ADR

43,500

375

*

 

Ironx Mineracao SA

28,463

374

 

 

Bradespar SA Pfd.

41,840

368

 

 

All America Latina Logistica

78,916

364

 

 

Weg SA

60,964

346

 

 

Gerdau SA Pfd.

53,000

337

 

^

Sadia SA ADR

53,922

327

 

 

Souza Cruz SA

18,800

326

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Aracruz Celulose SA ADR

23,330

310

 

Ultrapar Participacoes S.A.

15,243

281

*

Vivo Participacoes SA ADR

24,744

271

 

Companhia de Bebidas

 

 

 

das Americas

6,955

249

*

Net Servicos de

 

 

 

Comunicacao SA

38,379

244

 

Cyrela Brazil Realty SA

51,082

243

 

Brasil Telecom

 

 

 

Participacoes SA

10,970

230

 

Companhia de Bebidas

 

 

 

das Americas Pfd.

5,350

227

 

Klabin SA

131,700

227

 

Suzano Papel e Celulose SA

32,160

191

 

Usinas Siderurgicas de

 

 

 

Minas Gerais SA

16,510

189

 

Brasil Telecom SA Pfd.

30,390

181

*

Tim Participacoes SA

65,168

169

 

JBS SA

92,597

167

 

TELESP–Telecomunicacoes

 

 

 

de Sao Paulo SA Pfd.

7,300

165

 

Telmar Norte Leste SA

6,400

161

 

Tele Norte Leste

 

 

 

Participacoes SA

10,594

159

 

Lojas Americanas SA Pfd.

55,500

153

 

Tam SA

14,542

152

 

AES Tiete SA

22,916

143

 

CPFL Energia SA

9,600

139

 

Gerdau SA

25,884

137

 

Energias do Brasil SA

11,600

125

*

OGX Petroleo e Gas

 

 

 

Participacoes SA

900

113

 

CESP–Companhia Energetica

 

 

 

de Sao Paulo

24,723

111

 

Fertilizantes Fosfatados S.A.

20,364

106

*

Cosan SA Industria

 

 

 

e Comercio

21,434

106

 

B2W Com Global Do Varejo

8,180

105

 

Companhia de Saneamento

 

 

 

Basico do Estado

 

 

 

de Sao Paulo

8,992

103

 

Porto Seguro SA

20,260

101

 

Companhia de Transmissao

 

 

 

de Energia Electrica Paulista

5,000

92

 

Localiza Rent a Car SA

23,242

90

 

Tim Participacoes SA Pfd.

62,158

89

 

Duratex SA Pfd.

9,858

82

 

Telesp–Telecomunicacoes de

 

 

 

Sao Paulo SA

3,500

61

 

Companhia de Gas

 

 

 

de Sao Paulo - Comgas

4,000

59

 

AES Tiete SA

10,000

51

 

Companhia Brasileira de

 

 

 

Distribuicao Grupo Pao

 

 

 

de Acucar Pfd.

3,110

47

 

14

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

MMX Mineracao e

 

 

 

 

Metalicos SA

21,988

42

 

 

Companhia Paranaense de

 

 

 

 

Energia-COPEL

1,940

21

*

 

MPX Energia SA

300

16

 

 

Companhia Energetica de

 

 

 

 

Minas Gerais Pfd.

1,020

16

*

 

LLX Logistica SA

21,988

8

 

 

Companhia Energetica de

 

 

 

 

Minas Gerais

420

4

 

 

Confeccoes Guararapes SA

200

2

 

 

 

 

62,418

Canada (5.8%)

 

 

 

 

Royal Bank of Canada

303,226

11,784

 

 

EnCana Corp.

170,380

8,655

 

 

Toronto-Dominion Bank

183,223

8,653

 

 

Bank of Nova Scotia, Halifax

223,009

7,436

 

 

Manulife Financial Corp.

342,091

6,846

*

 

Research in Motion Ltd.

127,317

6,446

 

 

Canadian Natural

 

 

 

 

Resources Ltd.

122,397

6,176

 

 

Potash Corp. of

 

 

 

 

Saskatchewan, Inc.

69,891

5,949

 

 

Suncor Energy, Inc.

207,482

4,984

 

 

Canadian National

 

 

 

 

Railway Co.

107,714

4,676

 

 

Barrick Gold Corp.

197,835

4,524

 

 

Bank of Montreal, Quebec

114,300

4,080

 

 

TransCanada Corp.

129,659

3,918

 

 

Canadian Imperial Bank

 

 

 

 

of Commerce

85,443

3,875

 

 

Rogers

 

 

 

 

Communications, Inc.

 

 

 

 

Class B

118,484

3,440

 

 

Sun Life Financial Services

 

 

 

 

of Canada

125,842

2,960

 

 

Goldcorp Inc.

158,243

2,959

 

 

Enbridge Inc.

83,700

2,907

 

 

Imperial Oil Ltd.

81,235

2,875

 

 

Petro-Canada

108,867

2,722

 

 

Talisman Energy, Inc.

227,311

2,246

 

 

Brookfield Asset

 

 

 

 

Management Inc.

127,757

2,237

 

 

Power Corp. of Canada

91,900

1,998

 

 

Shoppers Drug Mart Corp.

50,000

1,925

 

 

Nexen Inc.

118,538

1,882

 

 

BCE Inc.

58,605

1,703

 

 

Husky Energy Inc.

56,642

1,701

 

 

Power Financial Corp.

65,700

1,645

 

 

Shaw Communications Inc.

92,300

1,617

 

 

Canadian Pacific Railway Ltd.

34,800

1,575

 

 

Kinross Gold Corp.

143,595

1,495

 

 

National Bank of Canada

39,143

1,468

 

 

Agrium, Inc.

36,000

1,379

 

 

Cameco Corp.

76,610

1,254

 

 

Bombardier Inc. Class B

313,515

1,210

 

^

Thomson Reuters Corp.

42,423

999

 

 

 

 

 

 

Market

 

 

 

 

 

Value

 

 

 

 

Shares

($000)

 

 

Teck Cominco Ltd. Class B

 

98,972

985

 

 

Great-West Lifeco Inc.

 

45,966

976

 

 

TransAlta Corp.

 

43,543

874

 

 

Magna International

 

24,933

837

 

 

IGM Financial, Inc.

 

23,966

725

 

 

Canadian Tire Corp. Class A

 

18,102

688

 

 

George Weston Ltd.

 

13,000

663

 

 

Loblaw Cos., Ltd.

 

27,197

662

 

 

Brookfield Properties Corp.

 

62,950

640

 

 

Saputo Inc.

 

23,890

499

*

 

CGI Group Inc.

 

62,378

498

 

 

Canadian Utilities Ltd.

 

14,021

493

 

 

Telus Communications Inc.

 

13,937

492

 

 

Finning International Inc.

 

40,360

491

*

 

MDS Inc.

 

32,200

336

 

 

Telus Corp.-Non Voting Shares

 

9,783

319

 

 

Biovail Corp.

 

34,800

299

 

 

Nova Chemicals Corp.

 

20,908

271

*

 

Nortel Networks Corp.

 

101,642

126

 

 

Bombardier Inc. Class A

 

900

4

 

 

 

 

 

143,077

Chile (0.3%)

 

 

 

 

 

Empresa Nacional de

 

 

 

 

 

Electricidad SA ADR

 

36,581

1,361

 

 

Sociedad Quimica y Minera

 

 

 

 

 

de Chile SA ADR

 

52,890

1,211

 

 

Enersis SA ADR

 

80,898

1,165

 

 

Banco Santander

 

 

 

 

 

Chile SA ADR

 

27,161

972

 

 

Empresas Copec SA

 

77,342

634

 

 

Compania de

 

 

 

 

 

Telecomunicaciones de

 

 

 

 

 

Chile SA ADR

 

89,262

606

 

 

Distribucion y Servicio

 

 

 

 

 

D&S SA ADR

 

32,967

587

 

 

S.A.C.I. Falabella SA

 

115,147

303

 

 

CAP SA

 

16,167

195

 

 

Empresa Nacional de

 

 

 

 

 

Telecomunicaciones SA

 

8,160

85

 

 

Banco de Chile

 

1,701,489

83

 

 

Lan Airlines SA

 

8,765

79

*

 

Colburn SA

 

513,465

77

 

 

Cencosud SA

 

51,488

75

 

 

Banco de Credito

 

 

 

 

 

e Inversiones

 

4,240

71

 

 

Compania Cervecerias

 

 

 

 

 

Unidas SA

 

1,800

10

 

 

Corpbanca

 

1,319,400

5

 

 

Embotelladora Andina

 

 

 

 

 

SA Pfd. Class B

 

2,200

4

 

 

 

 

 

7,523

China (2.2%)

 

 

 

 

 

China Mobile

 

 

 

 

 

(Hong Kong) Ltd.

 

1,337,500

11,774

 

^

China Life Insurance

 

 

 

 

 

Co., Ltd.

 

1,684,000

4,500

 

15

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

PetroChina Co. Ltd.

4,742,000

3,565

 

 

CNOOC Ltd.

3,108,000

2,552

 

 

China Petroleum &

 

 

 

 

Chemical Corp.

3,702,000

2,431

 

^

China Construction Bank

4,665,000

2,314

 

 

China Unicom Ltd.

1,580,182

2,256

 

^

Bank of China

6,756,000

1,973

 

^

Ping An Insurance

 

 

 

 

(Group) Co. of China Ltd.

456,500

1,952

 

 

China Shenhua Energy Co.

 

 

 

 

Ltd. H-Shares

758,500

1,440

 

 

China Telecom Corp. Ltd.

3,568,000

1,270

 

^

China Merchants

 

 

 

 

Bank Co., Ltd. Class H

753,500

1,154

 

 

China Merchants Holdings

 

 

 

 

International Co. Ltd.

464,000

1,105

 

 

China Resources

 

 

 

 

Enterprise Ltd.

486,000

968

 

^

Bank of

 

 

 

 

Communications Ltd.

 

 

 

 

Class H

1,567,000

923

 

 

China Communications

 

 

 

 

Construction Co., Ltd.

1,208,000

856

*

 

Shanghai Electric

 

 

 

 

Group Co., Ltd. Class H

2,496,000

755

 

 

Huaneng Power

 

 

 

 

International, Inc.

 

 

 

 

H Shares

1,500,000

730

 

 

China Coal Energy Co.

1,074,000

651

 

 

Beijing Datang Power

 

 

 

 

Generation Co., Ltd.

1,724,000

649

 

 

Cosco Pacific Ltd.

754,000

549

 

 

China Resources Power

 

 

 

 

Holdings Co., Ltd.

266,000

520

 

 

Denway Motors Ltd.

2,050,000

511

 

^

Air China Ltd.

1,810,000

506

 

 

Fujian Zijin Mining

 

 

 

 

Industry Co., Ltd.

1,484,000

449

 

^

China Resources Land Ltd.

414,000

419

 

 

CITIC Pacific Ltd.

418,000

340

 

 

Lenovo Group Ltd.

1,118,000

339

 

 

GOME Electrical

 

 

 

 

Appliances Holdings Ltd.

1,681,000

336

*

^

PICC Property and

 

 

 

 

Casualty Co., Ltd.

1,114,000

308

*

 

China Railway

 

 

 

 

Construction Corp.

231,500

286

*

^

Anhui Conch

 

 

 

 

Cement Co. Ltd.

72,000

229

 

 

Beijing Enterprises

 

 

 

 

Holdings Ltd.

58,000

229

 

 

Yanzhou Coal

 

 

 

 

Mining Co. Ltd. H Shares

334,000

206

 

^

BYD Co. Ltd.

120,600

205

 

 

China Shipping

 

 

 

 

Development Co.

204,000

201

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

^

Aluminum Corp. of

 

 

 

 

China Ltd.

514,000

187

 

 

China COSCO

 

 

 

 

Holdings Co., Ltd.

336,300

181

 

 

China Mengniu

 

 

 

 

Dairy Co., Ltd.

186,000

179

 

 

Li Ning Co., Ltd.

136,000

168

 

 

Beijing Capital International

 

 

 

 

Airport Co., Ltd.

282,000

159

 

 

Zhejiang

 

 

 

 

Expressway Co., Ltd.

322,000

154

 

 

Shanghai Industrial

 

 

 

 

Holding Ltd.

95,000

151

 

 

China International Marine

 

 

 

 

Containers (Group) Co., Ltd.

295,437

149

 

 

China Communication

 

 

 

 

Services Corp. Ltd.

262,000

138

 

 

Chaoda Modern Agriculture

 

 

 

 

Holdings Ltd.

188,350

133

 

^

Parkson Retail Group Ltd.

141,000

131

 

 

China Oilfield Services Ltd.

236,000

130

 

 

China Everbright Ltd.

130,000

122

 

 

Jiangsu Expressway Co. Ltd.

 

 

 

 

H Shares

174,000

122

 

 

Yantai Changyu Pioneer

 

 

 

 

Wine Co., Ltd.

35,700

111

 

 

Angang Steel Co., Ltd.

172,000

106

 

 

Jiangxi Copper Co. Ltd.

210,000

103

 

 

China Vanke Co., Ltd.

173,920

103

 

 

ZTE Corp.

44,560

101

 

 

China Bluechemical, Ltd.

222,000

84

 

 

Dongfeng Motor Corp.

288,000

82

 

^

Guangzhou R&F

 

 

 

 

Properties Co. Ltd.

157,600

76

 

 

Inner Mongolia Yitai

 

 

 

 

Coal Co., Ltd.

44,100

75

 

 

Shanghai Zhenhua Port

 

 

 

 

Machinery Co., Ltd.

 

 

 

 

Class B

107,300

68

*

 

Yangzijiang Shipbuilding

 

 

 

 

Holdings Ltd.

259,000

58

 

 

Tsingtao Brewery Co., Ltd.

30,000

54

 

 

Dongfang

 

 

 

 

Electrical Corp Ltd.

26,000

51

 

 

Guangdong Investment Ltd.

164,000

50

 

 

The Guangshen

 

 

 

 

Railway Co., Ltd.

128,000

50

 

 

Weichai Power Co., Ltd.

 

 

 

 

Class H

20,000

48

 

 

China Travel International

316,000

45

 

 

China Shipping Container

 

 

 

 

Lines Co. Ltd.

371,700

43

 

 

Global Bio-chem Technology

 

 

 

 

Group Co. Ltd.

284,000

40

 

 

Harbin Power

 

 

 

 

Equipment Co., Ltd.

66,000

37

 

16

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

KWG Property Holding, Ltd.

161,500

35

 

 

Sinopec Shanghai

 

 

 

 

Petrochemical Co. Ltd.

184,000

34

 

 

Sinotrans Ltd.

153,000

34

 

 

Guangzhou

 

 

 

 

Investment Co. Ltd.

460,000

34

 

 

Shanghai Lujiazui Finance

 

 

 

 

& Trade Zone

 

 

 

 

Development Co., Ltd.

 

 

 

 

Class B

45,900

33

 

 

Nine Dragons Paper

 

 

 

 

Holdings Ltd.

179,000

31

 

 

Maanshan Iron and

 

 

 

 

Steel Co. Ltd.

156,000

29

 

 

China Molybdenum Co. Ltd.

87,000

27

 

 

Zhejiang Southeast Electric

 

 

 

 

Power Co., Ltd.

72,400

27

 

 

China Foods Ltd.

100,000

26

 

 

Hidili Industry Int’l

 

 

 

 

Development Ltd.

124,000

26

 

 

TPV Technology Ltd.

132,000

26

 

^

Zhaojin Mining

 

 

 

 

Industry Co. Ltd.

73,000

26

 

 

Huadian Power

 

 

 

 

International Corp. Ltd.

140,000

26

*

 

China Southern

 

 

 

 

Airlines Co. Ltd.

159,000

25

 

 

Shenzhen

 

 

 

 

Expressway Co. Ltd.

68,000

23

 

 

CSG Holding Co. Ltd.

46,507

20

*

 

Guangzhou Shipyard

 

 

 

 

International Co. Ltd.

28,000

20

 

 

Shandong Chenming Paper

 

 

 

 

Holdings Ltd. Class B

54,700

19

*

 

Dazhong Transportation

 

 

 

 

Group Co., Ltd. B Shares

48,000

18

 

 

China Merchants Property

 

 

 

 

Development Co., Ltd.

22,950

17

*

 

China Eastern

 

 

 

 

Airlines Corp. Ltd.

122,000

15

 

 

TravelSky Technology Ltd.

64,000

15

 

 

Shenzhen Investment Ltd.

144,808

15

 

 

Great Wall Motor Co., Ltd.

39,500

12

 

 

Weiqiao Textile Co. Ltd.

54,000

11

*

 

Brilliance China Automotive

 

 

 

 

 

Holdings Ltd.

248,000

10

*

 

BOE Technology

 

 

 

 

 

Group Co. Ltd. Class B

100,400

10

 

 

Guangdong Electric Power

 

 

 

 

 

Development Co., Ltd.

16,400

5

 

 

Inner Mongolia Eerduosi

 

 

 

 

 

Cashmere Products Co. Ltd.

10,300

4

 

 

Anhui Expressway Co., Ltd.

8,000

3

*

^

Semiconductor Manufacturing

 

 

 

 

International Corp.

152,000

3

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

Shenzhen Chiwan Wharf

 

 

 

 

Holdings Ltd. Class B

 

3,200

3

*

Chongqing Changan

 

 

 

 

Automobile Co., Ltd.

 

10,656

2

 

Guangdong Provincial

 

 

 

 

Expressway

 

 

 

 

Development Co., Ltd.

 

6,100

2

 

Shanghai Mechanical and

 

 

 

 

Electrical Industry Co. Ltd.

 

 

 

 

Class B

 

3,840

2

 

Bengang Steel Plates Co., Ltd.

 

7,000

2

 

Shanghai Jinqiao Export

 

 

 

 

Processing Zone

 

 

 

 

Development Co., Ltd.

 

 

 

 

Class B

 

4,300

2

 

Shanghai Friendship

 

 

 

 

Group Inc. Co. Class B

 

2,900

2

 

Shanghai Jinjiang International

 

 

 

Industrial Investment Co., Ltd.

 

 

 

Class B

 

2,800

2

*

Shanghai Chlor-Alkali

 

 

 

 

Chemical Co. Ltd. Class B

 

7,100

2

*

Shanghai Haixan

 

 

 

 

Group Co. Ltd. Class B

 

8,200

2

 

Shanghai Jinjiang International

 

 

 

Hotels DevelopmentCo., Ltd.

 

 

 

Class B

 

2,700

1

 

Huadian Energy Co. Ltd.

 

7,600

1

*

Sinopec Yizheng Chemical

 

 

 

 

Fibre Co., Ltd.

 

20,000

1

*

Shanghai Waigaoqiao Free

 

 

 

 

Trade Zone

 

 

 

 

Development Co., Ltd.

 

 

 

 

Class B

 

3,500

1

 

Guangzhou

 

 

 

 

Pharmaceutical Co., Ltd.

 

4,000

1

*

Jinzhou Port Co., Ltd.

 

3,300

1

 

Double Coin Holdings, Ltd.

 

 

 

 

Class B

 

4,300

1

 

Jiangling Motors Corp. Ltd.

 

1,800

1

 

Weifu High-Technology Co., Ltd.

 

2,000

1

 

Tianjin Capital Environmental

 

 

 

 

Protection Co., Ltd.

 

4,000

*

Shenzhen Special Economic

 

 

 

 

Zone Real Estate

 

 

 

 

Group Co. Ltd. Class B

 

2,100

 

 

 

 

53,629

Colombia (0.0%)

 

 

 

 

Bancolombia SA ADR

 

42,872

837

 

 

 

 

 

Czech Republic (0.2%)

 

 

 

 

Ceske Energeticke

 

 

 

 

Zavody a.s.

 

51,771

2,264

 

Komercni Banka a.s.

 

6,905

1,051

 

Cesky Telecom a.s.

 

26,556

568

 

17

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Zentiva NV

3,900

228

 

 

Unipetrol a.s.

17,257

129

 

 

 

 

4,240

Denmark (0.7%)

 

 

 

 

Novo Nordisk A/S B Shares

120,876

6,479

 

 

Danske Bank A/S

155,468

2,301

 

 

AP Moller-Maersk A/S

 

 

 

 

B Shares

302

1,738

*

 

Vestas Wind Systems A/S

42,100

1,724

 

 

AP Moller-Maersk A/S

 

 

 

 

A Shares

291

1,697

 

 

Carlsberg A/S B Shares

25,339

998

 

 

Novozymes A/S

11,379

803

 

 

Danisco A/S

10,570

458

 

 

Coloplast A/S B Shares

5,762

418

 

^

FLS Industries A/S B Shares

9,500

354

*

 

Jyske Bank A/S

10,772

318

 

 

H. Lundbeck A/S

9,700

173

*

^

William Demant A/S

3,300

126

 

 

Rockwool International A/S

192

13

 

 

 

 

17,600

Egypt (0.1%)

 

 

 

 

Orascom Telecom

 

 

 

 

Holding SAE GDR

31,730

986

 

 

Orascom Construction

 

 

 

 

Industries GDR

9,309

628

 

 

 

 

1,614

Finland (1.0%)

 

 

 

 

Nokia Oyj

847,511

12,982

 

 

Sampo Oyj A Shares

128,364

2,572

 

 

Fortum Oyj

98,700

2,426

 

 

UPM-Kymmene Oyj

109,021

1,542

 

 

Stora Enso Oyj R Shares

128,233

1,193

 

 

Kone Oyj

47,914

1,072

 

 

Neste Oil Oyj

52,714

834

 

 

Wartsila Oyj B Shares

20,680

524

 

 

Rautaruuki Oyj

23,600

385

 

 

Metso Oyj

23,456

312

 

 

Nokian Renkaat Oyj

22,150

290

 

 

Kesko Oyj

11,900

279

 

 

Outokumpu Oyj A Shares

22,724

236

 

^

Sanoma Oyj

10,828

166

 

 

 

 

24,813

France (8.4%)

 

 

 

 

Total SA

535,437

29,456

 

 

Gaz de France

371,523

16,538

 

 

BNP Paribas SA

202,182

14,598

 

 

Sanofi-Aventis

220,163

13,949

 

 

France Telecom SA

436,533

11,007

 

 

AXA

457,060

8,732

 

 

Societe Generale Class A

131,033

7,142

 

 

Vivendi SA

258,533

6,758

 

 

Carrefour SA

157,504

6,654

 

 

Groupe Danone

113,988

6,347

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

LVMH Louis Vuitton Moet

 

 

 

 

Hennessy

82,887

5,516

 

 

L ’Oreal SA

68,188

5,163

 

 

Air Liquide SA

58,429

5,042

 

 

Vinci SA

109,213

3,930

 

 

Electricite de France

56,968

3,423

 

 

Cie. de St. Gobain SA

85,220

3,288

 

 

Schneider Electric SA

54,068

3,241

 

 

Pernod Ricard SA

49,753

3,240

 

 

Alstom

62,649

3,105

 

 

Credit Agricole SA

198,980

2,879

 

 

Unibail Co.

17,976

2,696

 

 

Veolia Environnement

103,241

2,558

 

 

Bouygues SA

57,401

2,444

 

^

Hermes International

17,876

2,307

 

 

Lafarge SA

33,089

2,187

 

 

Essilor International SA

47,908

2,149

 

 

Accor SA

51,924

2,020

*

 

Suez Environnement SA

80,770

1,544

 

 

Renault SA

47,825

1,466

 

 

Pinault-Printemps-

 

 

 

 

Redoute SA

21,113

1,346

*

 

Alcatel-Lucent

505,077

1,304

 

 

Vallourec SA

11,543

1,291

 

 

Sodexho Alliance SA

26,622

1,278

 

 

STMicroelectronics NV

149,756

1,231

 

 

Compagnie Generale des

 

 

 

 

Etablissements Michelin SA

23,539

1,212

 

 

Lagardere S.C.A.

30,190

1,200

 

 

PSA Peugeot Citroen

39,013

1,041

 

 

Christian Dior SA

16,798

1,018

 

 

Cap Gemini SA

31,431

1,013

 

 

CNP Assurances

10,496

846

 

 

Thales SA

18,746

752

 

 

Publicis Groupe SA

31,988

723

 

 

Technip SA

24,122

722

 

 

Casino Guichard-

 

 

 

 

Perrachon SA

9,187

642

 

^

Eiffage SA

16,482

633

 

 

Safran SA

47,487

603

 

^

Dassault Systemes SA

13,256

549

 

 

Air France

35,491

511

 

 

Eramet SLN

2,296

465

 

^

Societe Television

 

 

 

 

Francaise 1

34,581

443

 

 

Legrand SA

26,127

435

 

 

Societe BIC SA

8,188

433

*

 

Eutelsat Communications

20,120

432

 

 

Natixis

192,437

426

 

 

Eurazeo

6,982

420

*

 

Compagnie Generale de

 

 

 

 

Geophysique SA

25,971

420

 

 

Klepierre

18,052

416

 

 

Aeroports de Paris (ADP)

6,801

405

 

 

Bureau Veritas SA

10,942

390

 

 

Atos Origin SA

15,424

358

 

18

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Societe des Autoroutes

 

 

 

Paris-Rhin-Rhone

5,339

347

 

Arkema

14,147

324

 

Imerys SA

6,929

315

^

Valeo SA

18,084

315

^

JCDecaux SA

15,509

270

^

PagesJaunes SA

27,483

261

 

Gecina SA

3,566

248

^

Wendel Investissement

4,449

213

 

Euler Hermes SA

2,929

144

 

Ciments Francais SA

1,759

128

 

 

 

204,902

Germany (6.3%)

 

 

^

Volkswagen AG

32,562

20,721

 

E.On AG

423,381

15,866

 

Siemens AG

204,814

12,044

 

Deutsche Telekom AG

733,267

10,758

 

Bayer AG

171,705

9,399

 

Allianz AG

99,960

7,336

 

SAP AG

207,673

7,271

 

Daimler AG (Registered)

213,781

7,247

 

RWE AG

87,358

7,162

 

BASF AG

212,125

7,003

 

Muenchener

 

 

 

Rueckversicherungs-

 

 

 

Gesellschaft AG (Registered)

46,024

5,975

 

Deutsche Bank AG

125,767

4,698

 

Deutsche Boerse AG

43,091

3,370

 

Linde AG

28,804

2,383

 

Deutsche Post AG

201,951

2,214

 

Fresenius Medical Care AG

48,349

2,142

 

Bayerische Motoren

 

 

 

Werke AG

67,483

1,711

 

Porsche AG

19,459

1,701

 

Commerzbank AG

158,008

1,682

 

ThyssenKrupp AG

84,712

1,605

 

Adidas AG

45,774

1,590

 

Man AG

31,805

1,555

 

Volkswagen AG Pfd.

23,716

1,462

 

K+S AG

36,364

1,409

 

Merck KGaA

14,477

1,279

 

Fresenius AG Pfd.

18,421

1,169

 

Henkel AG & Co. KGaA

40,194

1,149

 

Beiersdorf AG

21,888

1,142

 

Metro AG

35,737

1,140

 

Continental AG

 

 

 

Acceptance Line

14,134

1,007

 

Henkel KGaA

30,038

735

 

TUI AG

59,655

721

 

Deutsche Lufthansa AG

49,429

685

 

Salzgitter AG

10,266

661

*

Infineon Technologies AG

163,331

506

 

Celesio AG

16,365

481

^

Solarworld AG

18,693

460

 

Fresenius AS

6,920

405

 

Hochtief AG

12,851

394

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

^

HeidelbergCement AG

5,210

387

 

 

Wacker Chemie AG

3,400

367

 

 

Hannover

 

 

 

 

Rueckversicherung AG

14,615

362

*

 

Q-Cells AG

7,583

300

 

 

Deutsche Postbank AG

14,469

291

 

 

Lanxess

19,108

289

 

^

Hypo Real Estate Holding AG

42,208

275

 

 

Fraport AG

8,578

275

 

^

Aachener & Muenchener

 

 

 

 

Beteiligungs AG (Bearer)

1,925

199

 

 

Puma AG

1,077

179

 

 

Hamburger Hafen und

 

 

 

 

Logistik AG

5,009

170

 

 

Altana AG

10,822

119

 

^

Continental AG

2,576

109

 

 

Suedzucker AG

9,537

107

*

^

Arcandor AG

21,576

50

 

 

 

 

153,717

Greece (0.4%)

 

 

 

 

National Bank of

 

 

 

 

Greece SA ADR

671,404

2,934

 

 

Hellenic Telecommunications

 

 

 

 

Organization SA ADR

210,982

1,532

 

 

Alpha Credit Bank SA

77,505

1,132

 

 

Greek Organization of

 

 

 

 

Football Prognostics

50,677

1,107

 

 

Bank of Piraeus

68,961

875

 

 

EFG Eurobank Ergasias

73,844

803

 

 

GEA Group AG

37,725

542

 

 

Marfin Financial Group SA

100,424

442

 

 

Coca-Cola Hellenic

 

 

 

 

Bottling Co. SA

23,938

334

 

 

Public Power Corp.

20,840

258

 

 

Titan Cement Co. SA

10,018

171

 

 

Hellenic Petroleum SA

16,930

140

*

 

Commercial Bank

 

 

 

 

of Greece SA

9,380

91

 

 

National Bank of Greece SA

187

4

 

 

 

 

10,365

Hong Kong (2.3%)

 

 

 

^

Industrial and

 

 

 

 

Commercial Bank of

 

 

 

 

China Ltd. Class H

9,126,000

4,294

 

 

Cheung Kong Holdings Ltd.

398,000

3,821

 

 

Hutchison Whampoa Ltd.

707,000

3,821

 

 

Sun Hung Kai

 

 

 

 

Properties Ltd.

422,409

3,701

 

 

CLP Holdings Ltd.

403,500

2,721

 

 

Hong Kong Exchanges &

 

 

 

 

Clearing Ltd.

255,800

2,594

 

 

Hang Seng Bank Ltd.

172,600

2,154

 

 

Hong Kong & China

 

 

 

 

Gas Co., Ltd.

1,122,850

1,978

 

 

Hong Kong Electric

 

 

 

 

Holdings Ltd.

365,500

1,970

 

19

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Tencent Holdings Ltd.

246,000

1,791

 

Swire Pacific Ltd. A Shares

252,500

1,778

 

Hang Lung Properties Ltd.

591,000

1,444

 

Hongkong Land

 

 

 

Holdings Ltd.

502,000

1,365

 

Li & Fung Ltd.

676,000

1,357

 

Hang Lung

 

 

 

Development Co., Ltd.

395,000

1,271

^

China Overseas Land &

 

 

 

Investment Ltd.

1,044,000

1,179

 

Esprit Holdings Ltd.

202,300

1,149

 

Henderson Land

 

 

 

Development Co. Ltd.

299,466

1,083

 

Jardine Matheson

 

 

 

Holdings Ltd.

43,200

1,022

 

Boc Hong Kong

 

 

 

Holdings Ltd.

879,237

1,007

 

Wharf Holdings Ltd.

484,250

966

 

Shangri-La Asia Ltd.

608,444

861

 

Link REIT

438,843

785

^

Tingyi Holding Corp.

696,000

737

 

Bank of East Asia Ltd.

348,000

702

 

MTR Corp.

292,500

648

^

Hengan International

 

 

 

Group Co. Ltd.

188,622

526

 

Hopewell Holdings Ltd.

158,000

491

 

Wing Hang Bank Ltd.

87,000

408

* ^

China Railway Group, Ltd.

694,000

405

 

New World

 

 

 

Development Co., Ltd.

484,000

403

 

Cathay Pacific Airways Ltd.

293,015

358

 

Sino Land Co.

396,000

348

 

Kingboard Chemical

 

 

 

Holdings Ltd.

174,000

347

 

China Insurance International

 

 

 

Holdings Co., Ltd.

124,000

289

 

PCCW Ltd.

765,000

286

*

Hutchison

 

 

 

Telecommunications

 

 

 

International Ltd.

234,000

253

 

Cheung Kong Infrastructure

 

 

 

Holdings Ltd.

68,000

249

^

Sinofert Holdings, Ltd.

430,000

240

 

Wheelock and Co. Ltd.

156,000

234

 

Techtronic

 

 

 

Industries Co., Ltd.

609,000

231

*

CITIC International Financial

 

 

 

Holdings Ltd.

348,000

220

 

Kerry Properties Ltd.

85,500

215

^

China National Building

 

 

 

Material Co., Ltd.

362,000

211

 

Hysan

 

 

 

Development Co., Ltd.

128,000

201

 

Belle International

 

 

 

Holdings Ltd.

413,000

198

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

*

 

Foxconn International

 

 

 

 

Holdings Ltd.

522,000

192

 

 

Yue Yuen Industrial

 

 

 

 

(Holdings) Ltd.

86,500

173

 

^

China Citic Bank

540,700

167

 

 

First Pacific Co. Ltd.

396,000

160

 

 

Television Broadcasts Ltd.

55,000

153

 

 

Hong Kong and Shanghai

 

 

 

 

Hotels Ltd.

148,000

140

 

 

Hong Kong Aircraft &

 

 

 

 

Engineering Co., Ltd.

16,000

126

 

 

Guoco Group

20,000

117

 

 

CNPC Hong Kong Ltd.

380,000

117

 

 

Chinese Estates Holdings

149,000

114

 

 

ASM Pacific Technology Ltd.

33,800

113

 

 

Sino-Ocean Land

 

 

 

 

Holdings Ltd.

404,500

109

 

 

Hopewell Highway

 

 

 

 

Infrastructure Ltd.

147,500

97

 

 

Industrial and Commercial

 

 

 

 

Bank of China (Asia) Ltd.

90,777

96

 

 

Huabao International

 

 

 

 

Holdings Ltd.

145,000

94

 

^

Country Garden

 

 

 

 

Holdings Co.

524,960

93

 

^

Shimao Property

 

 

 

 

Holdings Ltd.

170,594

92

 

 

NWS Holdings Ltd.

73,000

76

 

 

Agile Property Holdings, Inc.

212,000

70

 

 

Cafe De Coral Holdings Ltd.

38,000

60

 

 

China High Speed

 

 

 

 

Transmission Equipment

 

 

 

 

Group Co., Ltd.

75,000

60

 

 

Johnson Electric

 

 

 

 

Holdings Ltd.

278,500

58

 

 

Orient Overseas

 

 

 

 

International Ltd.

31,000

55

 

 

Lifestyle International

 

 

 

 

Holdings, Ltd.

81,500

54

 

 

Giordano International Ltd.

274,000

49

 

 

Fosun International

236,000

49

 

 

Anta Sports Products Ltd.

113,000

41

 

 

Shui On Land Ltd.

151,500

34

 

 

Texwinca Holdings Ltd.

66,000

31

 

 

Great Eagle Holdings Ltd.

26,000

30

*

 

CITIC Resources

 

 

 

 

Holdings Ltd.

370,300

28

*

 

New World China Land Ltd.

161,200

28

 

 

Dah Sing Financial Group

10,400

25

 

 

C C Land Holdings Ltd.

135,000

25

 

 

Kowloon

 

 

 

 

Development Co., Ltd.

70,000

24

 

 

Shenzhen International

 

 

 

 

Holdings Ltd.

647,500

22

 

 

Shun Tak Holdings Ltd.

99,000

20

 

20

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Greentown China

 

 

 

Holdings Ltd.

54,500

17

 

Hopson Development

 

 

 

Holdings Ltd.

44,000

15

 

Lee & Man Paper

 

 

 

Manufacturing Ltd.

29,200

10

* ^

Galaxy Entertainment

 

 

 

Group Ltd.

129,000

10

 

Melco International

 

 

 

Development Corp.

51,000

9

 

Mandarin Oriental

 

 

 

International Ltd.

4,000

5

 

Lianhua Supermarket

 

 

 

Holdings Ltd. Class H

4,000

5

 

Chong Hing Bank Ltd.

3,000

4

 

Henderson Investment Ltd.

74,000

3

 

Hutchinson Harbour Ring Ltd.

38,000

2

 

Next Media Ltd.

14,000

2

 

Dah Sing Banking Group Ltd.

2,800

2

 

Public Financial Holdings Ltd.

4,000

1

 

Fubon Bank (Hong Kong) Ltd.

6,000

1

 

Beijing North Star Co. Ltd.

10,000

1

 

 

 

55,391

Hungary (0.1%)

 

 

* ^

OTP Bank Nyrt.

61,130

1,012

 

MOL Hungarian Oil

 

 

 

and Gas Nyrt.

16,480

892

 

Richter Gedeon Nyrt.

5,220

721

 

Magyar Tavkozlesi Nyrt.

101,432

321

 

 

 

2,946

India (1.6%)

 

 

 

Infosys

 

 

 

Technologies Ltd. ADR

142,763

4,186

 

Reliance Industries Ltd. GDR

61,619

3,513

*

Bharti Airtel Ltd.

147,405

1,990

 

ITC Ltd.

525,383

1,673

 

State Bank of India GDR

33,821

1,568

 

Satyam Computer

 

 

 

Services Ltd. ADR

96,342

1,515

 

Wipro Ltd. ADR

194,647

1,507

 

ICICI Bank Ltd. ADR

85,973

1,469

 

Housing Development

 

 

 

Finance Corp. Ltd.

38,194

1,386

 

Larsen & Toubro Ltd.

81,168

1,353

 

HDFC Bank Ltd. ADR

15,299

1,004

 

Reliance Industries Ltd.

34,262

971

 

Tata Communications Ltd.

37,904

909

 

Mahanagar Telephone

 

 

 

Nigam Ltd. ADR

257,876

766

 

Oil and Natural

 

 

 

Gas Corp. Ltd.

51,738

711

 

Bharat Heavy Electricals Ltd.

25,655

682

 

Reliance

 

 

 

Communication Ventures

145,245

662

 

Hindustan Lever Ltd.

144,723

657

 

Axis Bank Ltd.

43,603

505

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Dr. Reddy’s

 

 

 

Laboratories Ltd. ADR

55,113

466

*

Essar Oil Ltd.

262,703

466

 

NTPC Ltd.

157,608

457

 

Tata Iron and Steel Co. Ltd.

92,135

402

 

Gail India Ltd.

87,614

389

*

Reliance Petroleum Ltd.

210,492

374

 

Cipla Ltd.

88,849

323

 

Hindalco Industries Ltd.

228,467

286

 

Reliance Capital Ltd.

20,915

284

 

Sterlite Industries (India) Ltd.

46,251

275

 

Grasim Industries Ltd.

12,634

268

 

Tata Consultancy

 

 

 

Services Ltd.

21,335

238

 

Tata Power Co. Ltd.

15,342

218

 

Sun Pharmaceutical

 

 

 

Industries Ltd.

9,370

217

*

Idea Cellular Ltd.

239,711

211

 

Jaiprakash Associates Ltd.

137,822

208

 

Bajaj Auto Ltd.

18,382

207

 

GlaxoSmithKline

 

 

 

Pharmaceuticals (India) Ltd.

8,666

194

 

Kotak Mahindra Bank

25,927

182

*

Reliance Natural

 

 

 

Resources, Ltd.

201,831

182

 

Steel Authority of India Ltd.

101,714

178

 

Hero Honda Motors Ltd.

11,513

176

*

Cairn India Ltd.

63,025

170

 

Asea Brown Boveri India Ltd.

15,054

170

 

Infrastructure Development

 

 

 

Finance Co., Ltd.

139,442

168

 

DLF Ltd.

36,520

165

 

Punjab National Bank Ltd.

18,651

162

 

Jindal Steel & Power Ltd.

9,754

160

 

Reliance Energy Ltd.

16,453

156

 

Siemens India Ltd.

27,901

152

 

Lupin Ltd.

10,720

146

 

Aditya Birla Nuvo Ltd.

12,225

138

 

Nestle India Ltd.

4,502

135

 

Maruti Udyog Ltd.

11,472

134

 

Glenmark

 

 

 

Pharmaceuticals Ltd.

21,865

129

 

JSW Steel Ltd.

19,837

126

 

Power Grid Corp of India Ltd

81,120

117

 

Bank of India

22,739

113

 

Indian Oil Corporation Ltd.

15,624

108

*

United Spirits Ltd.

5,854

108

 

Zee Entertainment

 

 

 

Enterprises

32,802

104

 

HCL Technologies Ltd.

29,116

104

 

Hindustan

 

 

 

Petroleum Corp., Ltd.

26,201

102

 

Bharat Petroleum Corp. Ltd.

16,912

99

 

Colgate-Palmolive (India) Ltd.

12,688

99

 

Mahindra & Mahindra Ltd.

12,452

96

 

Divi’s Laboratories Ltd.

4,005

93

 

21

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

Adani Exports, Ltd.

 

11,892

92

 

Aban Offshore Ltd.

 

5,405

90

 

Unitech, Ltd.

 

85,675

87

 

Asian Paints (India) Ltd.

4,405

86

 

Ambuja Cements Ltd.

68,125

86

 

Mundra Port and Special

 

 

 

Economic Zone Ltd.

11,592

86

 

Great Eastern Shipping Co.

17,664

80

 

Tata Chemicals Ltd.

 

24,499

80

 

Sesa Goa Ltd.

 

47,480

79

*

Reliance Power Ltd.

 

37,067

78

 

Union Bank of India Ltd.

27,504

71

 

Crompton Greaves, Ltd.

22,106

70

 

Suzlon Energy Ltd.

 

74,326

67

 

Punj Lloyd Ltd.

 

17,917

65

 

Bajaj Holdings and

 

 

 

 

Investment Ltd.

 

8,936

62

 

Bharat Forge Ltd.

 

28,530

60

 

Nicholas Piramal India Ltd.

12,995

59

 

Tata Motors Ltd.

 

15,995

58

 

Indiabulls Financial

 

 

 

 

Services Ltd.

 

24,987

57

 

Bajaj Finserv Ltd.

 

16,537

40

 

Associated Cement Cos. Ltd.

3,467

35

 

Dabur India Ltd.

 

20,253

34

 

Canara Bank Ltd.

 

9,705

33

 

Ranbaxy Laboratories Ltd.

9,478

33

 

Housing Development &

 

 

 

Infrastructure Ltd.

 

10,260

31

*

Hindustan Zinc Ltd.

 

4,543

30

 

Financial Technologies

 

 

 

(India) Ltd.

 

2,704

29

*

Tata Teleservices

 

 

 

 

Maharashtra Ltd.

 

101,007

28

 

Ultratech Cemco Ltd.

3,849

28

*

Mangalore Refinery and

 

 

 

 

Petrochemicals Ltd.

34,553

27

 

Godrej Industries Ltd.

17,213

25

*

Sun TV Network Ltd.

7,768

24

*

Neyveli Lignite Corp., Ltd.

21,045

24

 

Bharat Electronics Ltd.

1,858

23

 

Oriental Bank of Commerce

8,752

22

 

Industrial Development Bank

 

 

 

of India Ltd.

 

16,782

20

 

National Aluminium Co., Ltd.

6,100

20

 

Ashok Leyland Ltd.

 

41,763

16

 

Moser Baer India Ltd.

9,766

16

*

GMR Infrastructure Ltd.

15,377

16

 

Great Offshore Ltd.

 

2,253

16

*

Oracle Financial

 

 

 

 

Services Software

 

935

12

*

Sun Pharma Advanced

 

 

 

Research Company, Ltd.

10,800

12

 

Mphasis Ltd.

 

2,267

8

 

Bank of Baroda

 

1,056

5

*

Piramal Life Sciences Ltd.

1,618

2

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Castrol (India) Ltd.

358

2

 

 

Shipping Corp. of India Ltd.

1,228

2

 

 

Cadila Healthcare Ltd.

364

2

 

 

Corporation Bank

416

2

 

 

Tech Mahindra Ltd.

221

2

 

 

Wockhardt Ltd.

500

1

*

 

Jet Airways (India) Ltd.

250

1

 

 

 

 

38,516

Indonesia (0.2%)

 

 

 

 

PT Telekomunikasi

 

 

 

 

Indonesia Tbk

2,182,500

1,092

 

 

PT Astra International Tbk

1,055,000

878

 

 

PT Bumi Resources Tbk

4,048,000

808

 

 

PT Bank Central Asia Tbk

2,973,000

721

 

 

PT Bank Rakyat

 

 

 

 

Indonesia Tbk

1,252,000

383

 

 

PT Unilever Indonesia Tbk

434,000

296

 

 

PT Indonesian

 

 

 

 

Satellite Corp. Tbk

575,500

276

 

 

PT Perusahaan Gas

 

 

 

 

Negara Tbk

1,828,500

230

 

 

PT United Tractors Tbk

418,500

122

 

 

PT Tambang Batubara

 

 

 

 

Bukit Asam Tbk

175,500

88

 

 

PT Bank Mandiri Tbk

610,000

88

*

 

PT Bank Indonesia Tbk

1,621,500

77

 

 

PT Semen Gresik Tbk

274,500

74

 

 

PT Indofood Sukses

 

 

 

 

Makmur Tbk

678,500

67

 

 

PT Indocement Tunggal

 

 

 

 

Prakarsa Tbk (Local)

197,500

65

 

 

PT Aneka Tambang Tbk

460,000

43

 

 

PT Astra Agro Lestari Tbk

75,500

42

 

 

PT International Nickel

 

 

 

 

Indonesia Tbk

252,500

40

 

 

PT Bank Danamon Tbk

78,000

18

 

 

PT Gudang Garam Tbk

45,500

18

 

 

PT Ramayana Lestari

 

 

 

 

Sentosa Tbk

221,500

10

 

 

 

 

5,436

Ireland (0.3%)

 

 

 

 

CRH PLC

119,892

2,634

 

 

Allied Irish Banks PLC

194,663

1,037

*

 

Elan Corp. PLC

103,010

777

 

 

Kerry Group PLC A Shares

32,294

720

 

 

Bank of Ireland

225,673

666

 

^

Anglo Irish Bank Corp. PLC

167,527

538

*

 

Ryanair Holdings PLC ADR

20,625

459

 

 

Irish Life & Permanent PLC

66,667

228

*

 

Ryanair Holdings PLC

58,749

205

 

 

 

 

7,264

Israel (0.6%)

 

 

 

 

Teva Pharmaceutical

 

 

 

 

Industries Ltd.

180,652

7,704

 

 

Israel Chemicals Ltd.

140,976

1,422

 

22

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Bezeq Israeli

 

 

 

Telecommunication

 

 

 

Corp., Ltd.

448,970

670

*

NICE Systems Ltd.

24,708

547

 

Bank Hapoalim Ltd.

204,436

463

 

Bank Leumi Le-Israel

134,780

354

 

Perrigo Co.

10,635

351

 

Cellcom Israel Ltd.

12,155

342

 

Makhteshim-Agan

 

 

 

Industries Ltd.

89,610

339

 

Partner

 

 

 

Communications Co. Ltd.

15,100

277

 

The Israel Corp. Ltd.

433

204

 

Elbit Systems Ltd.

3,400

163

*

Paz Oil Company Ltd.

1,278

127

 

Osem Investment Ltd.

8,700

99

 

Super Sol Ltd.

20,400

87

 

United Mizrahi Bank Ltd.

15,400

81

 

Strauss Group Ltd.

7,400

76

 

Oil Refineries Ltd.

136,313

69

 

Discount

 

 

 

Investment Corp. Ltd.

5,500

64

 

Ormat Industries Ltd.

7,805

56

 

Koor Industries Ltd.

1,500

51

 

Israel Discount Bank Ltd.

42,700

42

 

IDB Development Corp. Ltd.

3,200

38

 

Elbit Medical Imaging Ltd.

2,156

31

 

IDB Holding Corp., Ltd.

1,840

29

*

Hot Telecommunication

 

 

 

System Ltd.

4,100

24

*

Jerusalem

 

 

 

Economic Corp., Ltd.

2,836

12

 

Africa-Israel Investments Ltd.

400

6

 

Harel Insurance

 

 

 

Investments Ltd.

100

3

 

Clal Insurance Enterprise

 

 

 

Holdings Ltd.

200

2

 

Blue Square-Israel Ltd.

100

1

 

Gazit-Globe (1982) Ltd.

117

1

 

Delek Automotive

 

 

 

Systems Ltd.

100

1

 

Clal Industries and

 

 

 

Investments Ltd.

200

1

 

Delek Group, Ltd.

8

1

*

Alvarion Ltd.

151

1

 

Migdal Insurance

 

 

 

Holdings Ltd.

700

*

First International Bank of

 

 

 

Israel Ltd. -ILS .01 Par

411

*

First International Bank of

 

 

 

Israel Ltd. -ILS .05 Par

82

*

Given Imaging Ltd.

34

 

Property & Building Corp.

7

 

 

 

13,739

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Italy (2.8%)

 

 

 

Eni SpA

611,205

14,588

 

Assicurazioni Generali SpA

312,378

7,889

 

Intesa Sanpaolo SpA

1,975,220

7,229

 

Enel SpA

1,034,140

6,919

 

UniCredit SpA

2,195,679

5,375

 

Telecom Italia SpA

2,953,921

3,393

 

Unione Di Banche

 

 

 

Italiane ScpA

142,026

2,396

 

Banco Popolare SpA

139,194

1,736

 

Fiat SpA

181,367

1,439

 

Saipem SpA

74,063

1,392

 

Finmeccanica SpA

96,278

1,194

 

Atlantia SpA

63,908

1,170

 

Banca Monte dei Paschi di

 

 

 

Siena SpA

593,406

1,152

 

Telecom Italia SpA RNC

1,332,286

1,121

 

Snam Rete Gas SpA

217,741

1,102

 

Terna SpA

337,951

1,090

 

Mediobanca Banca di

 

 

 

Credito Finanziaria SpA

91,624

1,046

 

Mediaset SpA

189,551

1,030

 

Alleanza Assicurazioni SpA

97,567

650

 

Parmalat SpA

362,616

637

 

A2A SpA

349,213

637

 

Luxottica Group SpA

29,090

588

 

Banca Popolare di

 

 

 

Milano SpA

97,670

572

 

Banca Carige SpA

185,385

396

 

Lottomatica SpA

16,831

393

 

Fondiari-Sai SpA

20,474

385

 

IFIL Investments SpA

119,928

372

 

Pirelli & C. Accomandita

 

 

 

per Azioni SpA

982,404

346

 

Italcementi SpA

28,463

332

 

Autogrill SpA

41,026

328

 

Saras SpA Raffinerie Sarde

91,293

321

 

Unipol Gruppo

 

 

 

Finanziario SpA

120,954

215

 

Bulgari SpA

26,256

196

 

Unipol Gruppo

 

 

 

Finanziario SpA Pfd.

170,917

188

 

Italcementi SpA Risp.

24,345

169

 

Mediolanum SpA

40,261

158

 

Benetton Group SpA

15,917

112

 

Edison SpA

70,164

101

 

Buzzi Unicem SpA

7,041

86

 

Fondiaria-Sai SpA RNC

3,492

44

*

Finmeccanica SpA

 

 

 

Rights Exp. 11/07/08

69,336

28

 

 

 

68,515

Japan (16.8%)

 

 

 

Toyota Motor Corp.

576,700

22,521

 

Mitsubishi UF J

 

 

 

Financial Group

2,399,060

15,076

 

Canon, Inc.

295,000

10,323

 

23

FTSE All-World ex-US Index Fund

 

 

 

Market

 

 

Value

 

Shares

($000)

Matsushita Electric

 

 

Industrial Co., Ltd.

568,000

9,147

Honda Motor Co., Ltd.

302,800

7,529

Nintendo Co.

23,400

7,519

Sumitomo Mitsui Financial

 

 

Group, Inc.

1,727

6,923

Takeda

 

 

Pharmaceutical Co. Ltd.

138,000

6,857

Tokyo Electric Power Co.

225,800

6,395

NTT DoCoMo, Inc.

3,950

6,264

Sony Corp.

218,800

5,186

East Japan Railway Co.

724

5,152

Nippon Telegraph and

 

 

Telephone Corp.

1,177

4,803

Mizuho Financial Group, Inc.

1,923

4,696

Mitsubishi Corp.

280,000

4,693

KDDI Corp.

756

4,530

Seven and I

 

 

Holdings Co., Ltd.

160,300

4,501

Millea Holdings, Inc.

138,200

4,263

Japan Tobacco, Inc.

1,154

4,094

Kao Corp.

140,000

4,094

Nomura Holdings Inc.

431,300

4,086

Kansai Electric

 

 

Power Co., Inc.

159,600

4,002

Mitsubishi Estate Co., Ltd.

224,000

4,001

Shin-Etsu Chemical Co., Ltd.

72,000

3,827

Nippon Steel Corp.

1,108,000

3,729

Mitsui Fudosan Co., Ltd.

201,000

3,506

Astellas Pharma Inc.

87,000

3,504

Chubu Electric Power Co.

129,400

3,388

Mitsui & Co., Ltd.

331,000

3,207

Central Japan Railway Co.

387

3,179

Mitsui Sumitomo Insurance

 

 

Group Holdings, Inc.

105,800

2,940

Hitachi Ltd.

578,000

2,714

Fanuc Co., Ltd.

40,300

2,685

JFE Holdings, Inc.

103,700

2,646

Daiichi Sankyo Co., Ltd.

122,200

2,506

Nissan Motor Co., Ltd.

501,100

2,489

Kyocera Corp.

41,900

2,461

Komatsu Ltd.

223,700

2,459

Mitsubishi Heavy

 

 

Industries Ltd.

754,000

2,418

Bridgestone Corp.

136,700

2,390

Mitsubishi Electric Corp.

364,000

2,257

Orix Corp.

20,100

2,065

Sumitomo Realty &

 

 

Development Co.

126,000

2,053

Sumitomo Metal

 

 

Industries Ltd.

793,000

2,040

Toshiba Corp.

546,000

1,973

Tokyo Gas Co., Ltd.

455,000

1,956

Fuji Photo Film Co., Ltd.

83,900

1,931

Daiwa Securities Group Inc.

341,000

1,928

Secom Co., Ltd.

50,200

1,915

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Denso Corp.

98,200

1,914

 

West Japan Railway Co.

416

1,831

 

Tohoku Electric Power Co.

80,600

1,810

 

Kyushu Electric

 

 

 

Power Co., Inc.

78,900

1,809

 

Kirin Brewery Co., Ltd.

163,000

1,803

 

Murata

 

 

 

Manufacturing Co., Ltd.

52,200

1,799

 

Terumo Corp.

42,800

1,784

 

Sumitomo Corp.

201,700

1,775

 

Itochu Corp.

335,000

1,770

 

Bank of Yokohama Ltd.

362,000

1,756

 

Asahi Breweries Ltd.

104,400

1,723

 

Eisai Co., Ltd.

52,200

1,694

 

Chugoku Electric

 

 

 

Power Co., Ltd.

69,600

1,685

 

T & D Holdings, Inc.

43,500

1,662

 

Rohm Co., Ltd.

33,500

1,614

 

Sumitomo Trust &

 

 

 

Banking Co., Ltd.

337,000

1,561

 

Toray Industries, Inc.

332,000

1,542

 

Hankyu Corp.

320,000

1,510

^

Kintetsu Corp.

389,000

1,489

 

Keyence Corp.

7,600

1,456

 

Daito Trust

 

 

 

Construction Co., Ltd.

32,900

1,388

 

Nippon Yusen Kabushiki

 

 

 

Kaisha Co.

286,000

1,383

 

Shiseido Co., Ltd.

67,000

1,379

 

Yamada Denki Co., Ltd.

25,290

1,377

^

Hokuriku Electric Power Co.

52,200

1,376

 

Fujitsu Ltd.

348,000

1,368

 

Osaka Gas Co., Ltd.

379,000

1,341

 

Hoya Corp.

72,400

1,322

* ^

Mitsubishi Motors Corp.

953,000

1,317

 

Marubeni Corp.

338,000

1,313

 

Ricoh Co.

122,000

1,313

 

Yahoo Japan Corp.

3,966

1,312

^

Yakult Honsha Co., Ltd.

52,200

1,301

 

Suzuki Motor Corp.

88,500

1,299

 

Tokyu Corp.

329,000

1,292

 

Aeon Co., Ltd.

133,100

1,276

 

Dai-Nippon Printing Co., Ltd.

106,000

1,252

 

Asahi Kasei Corp.

332,000

1,249

 

Fast Retailing Co., Ltd.

11,600

1,237

 

NTT Data Corp.

370

1,223

 

Sharp Corp.

169,000

1,206

 

Tobu Railway Co., Ltd.

237,000

1,204

 

Daikin Industries Ltd.

52,200

1,174

 

Softbank Corp.

119,100

1,173

 

Shikoku Electric Power

39,900

1,171

 

Hokkaido Electric

 

 

 

Power Co., Ltd.

52,200

1,171

 

Tokyo Electron Ltd.

34,800

1,160

 

Benesse Corp.

27,000

1,134

 

24

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Electric Power

 

 

 

 

Development Co., Ltd.

38,000

1,131

 

 

Asahi Glass Co., Ltd.

179,000

1,125

 

 

Sekisui House Ltd.

112,000

1,123

 

 

Mitsubishi Chemical

 

 

 

 

Holdings Corp.

275,000

1,112

 

 

The Hiroshima Bank, Ltd.

288,000

1,070

 

 

Sumitomo Electric

 

 

 

 

Industries Ltd.

132,000

1,069

 

^

Resona Holdings Inc.

1,017

1,066

 

 

Sompo Japan Insurance Inc.

150,000

1,051

 

 

Kuraray Co., Ltd.

136,500

1,045

 

 

NEC Corp.

348,000

1,032

 

 

Sumitomo Chemical Co.

337,000

1,031

 

 

Nippon Express Co., Ltd.

253,000

1,021

 

 

SMC Corp.

10,800

1,020

 

 

Ajinomoto Co., Inc.

116,000

1,002

 

 

Hokuhoku Financial

 

 

 

 

Group, Inc.

503,000

995

 

 

Nissin Food

 

 

 

 

Products Co., Ltd.

34,800

995

 

 

Nippon Oil Corp.

242,000

993

 

 

Joyo Bank Ltd.

206,000

969

 

 

Mitsui OSK Lines Ltd.

183,000

956

 

 

Taisho Pharmaceutical Co.

53,000

955

 

 

Mizuho Trust &

 

 

 

 

Banking Co., Ltd.

802,000

942

 

 

Shizuoka Bank Ltd.

106,000

936

 

 

TDK Corp.

27,600

933

 

 

Toho Co., Ltd.

48,700

928

 

 

Shionogi & Co., Ltd.

53,000

902

 

 

JS Group Corp.

69,500

900

 

 

Chugai

 

 

 

 

Pharmaceutical Co., Ltd.

62,600

890

 

 

Kawasaki Heavy

 

 

 

 

Industries Ltd.

490,000

888

 

 

Odakyu Electric Railway Co.

121,000

887

 

 

THK Co., Inc.

64,500

883

 

 

Ono

 

 

 

 

Pharmaceutical Co., Ltd.

19,800

883

 

 

Daiwa House

 

 

 

 

Industry Co., Ltd.

99,000

880

 

 

Sumitomo Metal Mining Co.

117,000

877

 

 

Nikon Corp.

61,000

860

 

 

Kobe Steel Ltd.

522,000

847

 

 

Inpex Holdings, Inc.

144

836

 

 

Yamato Holdings Co., Ltd.

75,000

829

 

 

Nippon Paper Group, Inc.

309

826

 

 

Lawson Inc.

16,500

806

*

 

Sanyo Electric Co., Ltd.

522,000

792

 

 

Toyoda Automatic Loom

 

 

 

 

Works Ltd.

34,800

786

 

 

Nitto Denko Corp.

34,800

771

 

 

Nippon Mining Holdings Inc.

246,500

755

 

 

Mediceo Paltac

 

 

 

 

Holdings Co., Ltd.

69,600

754

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Taisei Corp.

326,000

751

 

 

Konami Corp.

41,300

747

 

 

Omron Corp.

52,200

745

 

 

Nipponkoa

 

 

 

 

Insurance Co., Ltd.

124,000

743

 

 

Mitsubishi Materials Corp.

329,000

743

 

 

Mazda Motor Corp.

324,000

719

 

 

Namco Bandai Holdings Inc.

69,600

716

 

 

Olympus Corp.

37,000

713

 

 

Kubota Corp.

142,000

713

 

 

Toppan Printing Co., Ltd.

96,000

706

 

 

Mitsui Trust Holding Inc.

175,000

690

 

 

The Nishi-Nippon

 

 

 

 

City Bank, Ltd.

313,000

682

 

 

Sankyo Co., Ltd.

15,300

681

 

 

Shinsei Bank, Ltd.

438,000

672

 

 

JTEKT Corp.

86,900

667

 

 

OJI Paper Co., Ltd.

174,000

664

 

 

Stanley Electric Co.

52,200

656

 

 

Toyo Seikan Kaisha Ltd.

52,200

644

 

^

Dentsu Inc.

386

633

 

^

Keihin Electric Express

 

 

 

 

Railway Co., Ltd.

82,000

633

 

 

Makita Corp.

34,800

631

 

 

FamilyMart Co., Ltd.

15,900

630

 

 

Ibiden Co., Ltd.

33,400

625

 

 

Aisin Seiki Co., Ltd.

34,800

616

 

 

Fuji Heavy Industries Ltd.

174,000

612

 

 

Isuzu Motors Ltd.

348,000

611

 

^

Oriental Land Co., Ltd.

8,400

596

 

 

Chiba Bank Ltd.

120,000

593

 

 

JSR Corp.

52,200

589

 

 

Bank of Kyoto Ltd.

55,000

579

 

 

Ohbayashi Corp.

118,000

577

 

 

Keihan Electric

 

 

 

 

Railway Co., Ltd.

125,000

576

 

 

Credit Saison Co., Ltd.

52,100

553

*

 

Isetan Mitsukoshi

 

 

 

 

Holdings Ltd.

58,040

547

 

 

Uni-Charm Corp.

7,600

545

 

 

Shimizu Corp.

110,000

540

 

 

The Chugoku Bank, Ltd.

39,000

537

 

 

Fukuoka Financial

 

 

 

 

Group, Inc.

162,000

536

 

 

Nidec Corp.

9,800

527

 

 

Seiko Epson Corp.

34,800

523

 

 

Citizen Watch Co., Ltd.

91,800

508

 

 

Sony Financial Holdings, Inc.

156

507

 

 

IHI Corp.

417,000

506

 

 

Yamaha Corp.

52,200

506

 

 

Kajima Corp.

174,000

503

 

 

Toyota Tsusho Corp.

52,100

503

 

 

Advantest Corp.

34,800

500

 

 

Showa Denko K.K.

328,000

498

 

 

Konica Minolta Holdings, Inc.

75,000

493

 

 

25

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Yamaguchi Financial

 

 

 

Group, Inc.

51,000

488

 

Nomura Research

 

 

 

Institute, Ltd.

28,500

471

 

NTT Urban

 

 

 

Development Corp.

457

469

 

Promise Co., Ltd.

26,100

468

 

SBI Holdings, Inc.

3,822

459

 

NGK Insulators Ltd.

44,000

457

 

Nagoya Railroad Co., Ltd.

145,000

451

 

Marui Co., Ltd.

73,300

448

 

The Iyo Bank, Ltd.

41,000

442

 

Hirose Electric Co., Ltd.

5,100

442

 

Nisshin Steel Co.

325,000

435

 

Keio Electric Railway Co., Ltd.

84,000

435

 

Hisamitsu

 

 

 

Pharmaceutical Co. Inc.

10,400

433

 

TonenGeneral Sekiyu K.K.

51,000

431

 

Trend Micro Inc.

17,500

428

^

All Nippon Airways Co., Ltd.

111,000

424

 

Aioi Insurance Co., Ltd.

99,000

407

 

Sekisui Chemical Co.

69,000

403

 

Toho Gas Co., Ltd.

69,000

398

 

JGC Corp.

36,000

386

 

Yamaha Motor Co., Ltd.

34,800

385

 

Nippon Meat Packers, Inc.

28,000

384

 

Taiheiyo Cement Corp.

324,000

377

 

Nippon Sheet Glass Co., Ltd.

114,000

373

 

Kurita Water Industries Ltd.

16,300

372

 

AEON Mall Co., Ltd.

14,800

365

 

Nisshin Seifun Group Inc.

33,500

363

 

Sojitz Holdings Corp.

217,100

363

* ^

Japan Airlines System Co.

159,000

362

 

Toyo Suisan Kaisha, Ltd.

14,000

361

 

Shimano, Inc.

12,600

360

 

Sumco Corp.

33,100

358

 

Leopalace21 Corp.

47,400

353

 

Mitsui Chemicals, Inc.

97,000

339

 

Tanabe Seiyaku Co., Ltd.

32,000

337

 

Teijin Ltd.

129,000

335

^

Nissha Printing Co., Ltd.

6,000

334

 

Casio Computer Co.

51,900

333

 

Japan Steel Works Ltd.

47,000

333

 

Toto Ltd.

47,000

328

 

Kawasaki Kisen Kaisha Ltd.

81,000

321

 

Nippon Sanso Corp.

51,000

321

 

J. Front Retailing Co., Ltd.

69,400

309

 

Yokogawa Electric Corp.

66,800

309

 

Kyowa Hakko Kogyo Co.

37,000

308

 

Brother Industries Ltd.

44,500

304

 

Gunma Bank Ltd.

59,000

301

 

The Suruga Bank, Ltd.

32,000

301

 

CSK Corp.

36,000

301

 

Nitori Co., Ltd.

4,750

298

 

Matsushita Electric

 

 

 

Works, Ltd.

34,000

297

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Q.P. Corp.

25,700

296

 

The Hachijuni Bank Ltd.

60,000

294

 

Maruichi Steel Tube Ltd.

12,800

291

 

Sega Sammy Holdings Inc.

37,800

286

 

Takashimaya Co.

37,000

285

 

Sapporo Holdings Ltd.

51,000

281

 

Dai Nippon

 

 

 

Pharmaceutical Co., Ltd.

35,000

277

 

Kamigumi Co., Ltd.

34,000

270

 

Shimadzu Corp.

39,000

267

^

Lion Corp.

40,000

262

 

Nippon Electric

 

 

 

Glass Co., Ltd.

43,500

262

 

Santen

 

 

 

Pharmaceutical Co., Ltd.

10,200

261

 

Furukawa Electric Co.

86,000

260

 

Rinnai Corp.

7,100

260

 

Mabuchi Motor Co.

6,400

253

 

NSK Ltd.

62,000

253

 

Kinden Corp.

30,000

250

 

Haseko Corp.

276,000

250

 

Sumitomo Heavy

 

 

 

Industries Ltd.

84,000

249

 

Tsumura & Co.

9,600

246

 

Shinko Securities Co., Ltd.

99,000

245

 

USS Co., Ltd.

4,000

245

 

Amada Co., Ltd.

53,000

243

 

Nissan Chemical

 

 

 

Industries, Ltd.

30,000

243

 

Ube Industries Ltd.

114,000

240

 

Sagami Railway

58,000

233

 

The Nanto Bank, Ltd.

49,000

230

 

Daihatsu Motor Co., Ltd.

31,000

230

 

Air Water Inc.

24,000

226

 

Canon Sales Co. Inc.

13,400

224

 

Kikkoman Corp.

22,000

222

 

Shimamura Co., Ltd.

3,200

222

 

Yokohama Rubber Co.

45,000

221

 

Ryohin Keikaku Co., Ltd.

4,600

220

 

The Shiga Bank, Ltd.

35,000

217

 

Keisei Electric

 

 

 

Railway Co., Ltd.

44,000

216

 

Mitsubishi UFJ Lease &

 

 

 

Finance Company Ltd.

8,930

214

 

Ushio Inc.

15,300

207

 

Wacoal Corp.

19,000

206

 

Shimachu Co.

9,000

205

 

The Hyakujushi Bank Ltd.

41,000

205

 

Meiji Seika Kaisha Ltd.

50,000

204

 

NOK Corp.

21,300

203

 

77 Bank Ltd.

43,000

203

 

Tokyu Land Corp.

71,000

201

 

Kansai Paint Co., Ltd.

36,000

201

 

Mitsubishi Logistics Corp.

22,000

200

 

Ogaki Kyoritsu Bank, Ltd.

40,000

199

 

Capcom Co., Ltd.

8,900

198

 

26

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Cosmo Oil Co., Ltd.

93,000

198

 

NTN Corp.

53,000

198

 

The Hyakugo Bank Ltd.

35,000

197

 

Coca-Cola West

 

 

 

Japan Co., Ltd.

9,800

197

 

Meiji Dairies Corp.

43,000

196

 

Mitsumi Electric Co., Ltd.

14,900

196

 

Hitachi Metals Ltd.

26,000

195

 

Idemitsu Kosan Co. Ltd.

3,300

192

^

Nomura Real Estate

 

 

 

Holdings Inc.

9,800

192

 

Yamato Kogyo Co., Ltd.

8,100

191

 

NGK Spark Plug Co.

20,000

189

 

Square Enix Co., Ltd.

7,400

186

 

Hitachi Construction

 

 

 

Machinery Co.

16,000

186

 

Sapporo Hokuyo Holdings, Inc.

43

185

 

Rengo Co., Ltd.

35,000

178

 

Daido Steel Co., Ltd.

56,000

177

 

The Juroku Bank, Ltd.

48,000

177

* ^

Elpida Memory Inc.

32,700

174

 

Yamazaki Baking Co., Ltd.

13,000

173

 

Hamamatsu Photonics Co.

7,700

171

 

Mitsubishi Gas Chemical Co.

45,000

166

 

Alfresa Holdings Corp.

3,800

165

 

Chiyoda Corp.

28,000

161

 

Hakuhodo DY Holdings Inc.

3,510

160

 

Minebea Co., Ltd.

59,000

159

 

House Foods Industry Corp.

9,400

153

*

Tokai Carbon Co., Ltd.

29,000

152

 

Susuken Co., Ltd.

7,000

150

 

Sumitomo Rubber

 

 

 

Industries Ltd.

16,900

149

 

Daicel Chemical

 

 

 

Industries Ltd.

41,000

148

* ^

DeNA Co., Ltd.

65

145

 

The Daishi Bank, Ltd.

37,000

144

 

ABC-Mart Inc.

4,500

138

 

Matsumotokiyoshi

 

 

 

Holdings Co., Ltd.

7,000

137

^

Nippon Paint Co., Ltd.

35,000

135

 

Circle K Sunkus Co., Ltd.

7,800

133

 

Uny Co., Ltd.

17,000

132

 

Tokuyama Corp.

26,000

132

 

Japan Petroleum

 

 

 

Exploration Co., Ltd.

3,400

130

 

NHK Spring Co.

32,000

129

 

Takefuji Corp.

15,960

128

 

Ito En, Ltd.

8,000

127

 

Fujikura Ltd.

44,000

126

 

Hitachi Chemical Co., Ltd.

12,200

125

 

Mitsubishi Rayon Co., Ltd.

58,000

125

 

The Awa Bank, Ltd.

20,000

124

^

Matsui Securities Co., Ltd.

19,000

123

 

Tokyo Steel Manufacturing Co.

15,800

122

 

Nishi-Nippon Railroad Co., Ltd.

33,000

121

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Kokuyo Co., Ltd.

17,100

121

 

 

Kobayashi

 

 

 

 

Pharmaceutical Co., Ltd.

3,700

119

 

 

Don Quijote Co., Ltd.

6,500

118

 

 

MISUMI Group Inc.

7,700

118

 

 

Denki Kagaku Kogyo K.K.

53,000

117

 

 

Nisshinbo Industries, Inc.

20,000

116

 

 

The Bank of Nagoya, Ltd.

19,000

114

 

 

Tosoh Corp.

57,000

114

 

 

Aozora Bank, Ltd.

136,000

114

 

 

Mitsui Mining &

 

 

 

 

Smelting Co., Ltd.

62,000

113

 

 

Asics Corp.

18,000

113

 

 

Mochida Pharmaceutical

12,000

112

 

 

Kose Corp.

4,300

112

 

 

Alps Electric Co., Ltd.

20,300

112

 

^

Ezaki Glico Co., Ltd.

11,000

110

 

 

Autobacs Seven Co., Ltd.

5,100

108

 

 

The San-in Godo Bank, Ltd.

15,000

107

 

 

Tokyo Tatemono Co., Ltd.

26,000

107

 

 

IZUMI Co., Ltd.

8,200

106

 

 

Dowa Mining Co., Ltd.

35,000

105

 

 

Nippon Kayaku Co., Ltd.

23,000

105

 

 

Sumitomo Forestry Co.

16,000

105

 

 

JAFCO Co., Ltd.

3,900

105

 

 

Tokyo Style Co.

14,000

104

 

 

Oracle Corp. Japan

2,400

104

 

 

Kaneka Corp.

22,000

103

 

 

Onward Kashiyama Co., Ltd.

14,000

102

 

 

Nichirei Corp.

24,000

102

 

 

Hitachi

 

 

 

 

High-Technologies Corp.

6,200

101

 

 

Gunze Ltd.

30,000

99

 

 

Itochu Techno-Science Corp.

4,200

98

 

 

Fuji Electric

 

 

 

 

Holdings Co., Ltd.

66,000

96

 

 

Taiyo Yuden Co., Ltd.

20,000

96

 

 

The Kagoshima Bank, Ltd.

15,000

95

 

 

Aeon Credit Service Co. Ltd.

8,900

95

 

 

Hitachi Koki Co.

12,200

94

 

 

Dowa Fire & Marine

 

 

 

 

Insurance Co.

21,000

93

 

 

Yaskawa Electric Corp.

21,000

92

 

 

Seino Transportation Co., Ltd.

19,000

92

 

 

Asatsu-DK Inc.

4,100

91

 

 

Takara Holdings Inc.

19,000

91

 

 

Yamatake Corp.

4,700

90

 

 

Dai-Nippon Ink &

 

 

 

 

Chemicals, Inc.

55,000

89

*

 

IT Holdings Corp.

8,200

89

 

 

Toyoda Gosei Co., Ltd.

6,300

88

 

 

Toyobo Ltd.

62,000

88

 

 

Sysmex Corp.

2,800

87

 

^

Mitsui Engineering &

 

 

 

 

Shipbuilding Co., Ltd.

62,000

87

 

 

Komeri Co., Ltd.

3,800

86

 

27

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Showa Shell Sekiyu K.K.

10,500

86

 

 

Sumitomo Osaka

 

 

 

 

Cement Co., Ltd.

53,000

83

 

 

Higo Bank Ltd.

15,000

83

 

 

Obic Co., Ltd.

670

82

 

 

The Keiyo Bank, Ltd.

18,000

81

 

 

Ebara Corp.

39,000

78

 

 

Otsuka Corp.

1,500

75

 

 

The Hokkoku Bank, Ltd.

20,000

75

 

 

Acom Co., Ltd.

1,970

75

 

^

Pacific Metals Co., Ltd.

17,000

75

 

^

Mori Seiki Co.

8,600

74

 

 

Toyota Boshoku Corp.

8,100

72

 

 

Toda Corp.

20,000

72

 

 

Dai-Nippon Screen

 

 

 

 

Manufacturing Co., Ltd.

33,000

70

 

 

Okuma Corp.

16,000

70

 

 

The Musashino Bank, Ltd.

2,200

66

 

 

Nippon Shokubai Co., Ltd.

11,000

64

 

 

Koito Manufacturing Co., Ltd.

8,000

62

 

 

Sumitomo Bakelite Co. Ltd.

17,000

62

*

 

Oki Electric Industry Co. Ltd.

67,000

55

 

 

Nabtesco Corp.

9,000

55

 

 

Aoyama Trading Co., Ltd.

4,300

50

 

^

Pioneer Corp.

15,300

45

 

^

ULVAC, Inc.

2,400

45

 

 

Hino Motors, Ltd.

19,000

44

 

 

Tokai Rika Co., Ltd.

4,100

41

 

 

Shinko Electric

 

 

 

 

Industries Co., Ltd.

5,800

37

 

 

Shima Seiki

 

 

 

 

Manufacturing, Ltd.

1,800

33

 

 

Aiful Corp.

7,100

33

 

 

Hankyu Department

 

 

 

 

Stores, Inc.

4,000

25

 

 

Takata Corp.

2,400

17

 

 

Tokyo Broadcasting

 

 

 

 

System, Inc.

900

16

 

 

Nipro Corp.

1,000

15

 

 

Fuji Television Network, Inc.

12

14

 

 

ZEON Corp.

5,000

14

 

 

Osaka Titanium

 

 

 

 

Technologies Co.

400

10

 

 

Monex Beans Holdings, Inc.

29

10

 

 

Okasan Holdings, inc.

2,000

9

 

 

Fukuyama

 

 

 

 

Transporting Co., Ltd.

2,000

8

 

 

Lintec Corp.

600

7

 

 

Nippon Television

 

 

 

 

Network Corp.

70

7

 

 

Sohgo Security

 

 

 

 

Services Co., Ltd.

700

7

 

 

Sumisho Computer

 

 

 

 

Systems Corp.

400

6

 

 

Toshiba TEC Corp.

2,000

6

 

 

PanaHome Corp.

1,000

6

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Kandenko Co., Ltd.

1,000

5

 

Toyota Auto Body Co., Ltd.

300

5

 

Heiwa Corp.

700

5

 

DISCO Corp.

200

5

 

Toho Titanium Co., Ltd.

400

5

 

NIDEC SANKYO CORP.

1,000

5

 

Toppan Forms Co., Ltd.

500

5

 

Hikari Tsushin, Inc.

300

4

 

Hitachi Cable Ltd.

2,000

4

 

Tokai Rubber Industries, Ltd.

500

4

*

NEC Electronics Corp.

400

4

 

Fuji Fire & Marine

 

 

 

Insurance Co., Ltd.

2,000

4

 

Mizuho Investors

 

 

 

Securities Co., Ltd.

5,000

4

 

TV Asahi Corp.

3

4

 

Koei Co., Ltd.

300

3

 

Hitachi Maxwell

400

3

 

Funai Electric Co., Ltd.

200

3

 

NS Solutions Corp.

200

2

 

Kansai Urban Banking Corp.

2,000

2

 

Calsonic Kansei Corp.

1,000

2

 

SFCG Co., Ltd.

140

2

 

Hitachi Software

 

 

 

Engineering Co., Ltd.

100

1

 

kabu.com Securities Co., Ltd.

1

1

 

Hitachi Capital Corp.

100

1

 

Sky Perfect JSAT Corp.

2

1

 

Sumitomo Real Estate

 

 

 

Sales Co., Ltd.

10

 

 

 

411,706

Luxembourg (0.3%)

 

 

 

ArcelorMittal (Paris Shares)

242,349

6,303

 

SES Global Fiduciary

 

 

 

Depositary Receipts

76,251

1,372

 

RTL Group

3,113

165

 

 

 

7,840

Malaysia (0.6%)

 

 

 

Public Bank Bhd.

763,900

1,809

 

Sime Darby Bhd.

984,894

1,739

 

Bumiputra-Commerce

 

 

 

Holdings Bhd.

753,400

1,313

 

Malayan Banking Bhd.

812,825

1,238

 

Genting Bhd.

653,300

843

 

IOI Corp. Bhd.

1,054,955

836

*

TM International Bhd.

646,600

828

 

Malaysia International

 

 

 

Shipping Corp.,

 

 

 

Bhd. (Foreign)

337,400

777

 

Resorts World Bhd.

747,400

528

 

Digi.com Bhd.

76,651

399

 

Tenaga Nasional Bhd.

222,400

378

 

British American

 

 

 

Tobacco Bhd.

31,400

364

 

Petronas Gas Bhd.

129,100

357

 

Berjaya Sports Toto Bhd.

272,000

337

 

28

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

YTL Corp., Bhd.

 

188,700

333

 

PLUS Expressways Bhd.

 

440,700

331

 

PPB Group Bhd.

 

135,400

297

 

Kuala Lumpur Kepong Bhd.

 

117,600

275

 

UMW Holdings

 

 

 

 

Malaysia Bhd.

 

166,100

257

 

AMMB Holdings Bhd.

 

388,100

237

 

YTL Power International Bhd.

450,602

212

 

Telekom Malaysia Bhd.

 

196,800

186

 

Petronas Dagangan Bhd.

 

96,800

183

 

SP Setia Bhd.

 

225,850

179

 

Malaysia Mining Corp., Bhd.

 

309,400

174

 

Tanjong Public Ltd. Co.

 

50,300

169

 

Gamuda Bhd.

 

362,500

155

 

Alliance Financial Group Bhd.

269,300

140

 

Star Publications Bhd.

 

146,200

128

 

Parkson Holdings, Bhd.

 

133,200

126

 

Hong Leong Bank Bhd.

 

83,000

123

 

IJM Corp. Bhd.

 

169,800

123

 

Astro All Asia Networks PLC

194,700

116

 

RHB Capital Bhd.

 

62,200

54

 

Lafarge Malayan

 

 

 

 

Cement Bhd.

 

59,810

48

 

EON Capital Bhd.

 

23,700

23

 

Malaysia Airports

 

 

 

 

Holdings Bhd.

 

24,600

15

 

Malaysian Pacific

 

 

 

 

Industries Bhd.

 

7,400

13

*

Proton Holdings Bhd.

 

22,500

13

 

Puncak Niaga Holdings Bhd.

11,400

6

*

IJM Land Corp. Bhd.

 

 

 

 

Warrants Exp. 9/11/13

 

16,980

1

 

 

 

 

15,663

Mexico (1.0%)

 

 

 

 

America Movil SA de CV

 

4,886,642

7,569

 

Wal-Mart de Mexico SA

 

770,800

2,073

 

Telefonos de Mexico SA

 

2,255,643

2,025

 

Grupo Televisa SA CPO

 

561,500

1,970

 

Grupo Mexico SA de CV

 

1,672,606

1,306

 

Cemex SAB de CV ADR

 

170,144

1,286

 

Fomento Economico

 

 

 

 

Mexicano UBD

 

478,400

1,212

 

Telmex Internacional

 

 

 

 

SAB de CV

 

2,212,390

1,162

 

Grupo Financiero Inbursa,

 

 

 

 

SA de CV

 

400,300

1,062

*

Carso Global Telecom

 

 

 

 

SAB de CV

 

223,900

856

 

Grupo Financerio Banorte

 

 

 

 

SA de CV

 

433,700

794

 

Grupo Modelo SA

 

208,800

644

 

Grupo Carso SA de CV

 

 

 

 

Series A1

 

161,300

441

 

Grupo Elektra SA

 

13,600

367

 

Grupo Bimbo SA

 

74,807

359

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Kimberly Clark de Mexico

 

 

 

 

SA de CV Series A

92,255

303

*

 

Corporacion GEO, SA de CV

208,649

289

 

 

Industrias Penoles SA

 

 

 

 

Series CP

25,479

229

*

 

Desarrolladora Homex SA

 

 

 

 

de CV

46,897

180

 

 

Grupo Aeroportuario del

 

 

 

 

Pacifico SA

79,895

146

*

 

Impulsora del Desarrollo y

 

 

 

 

el Empleo en America

 

 

 

 

Latina, SA de CV

164,100

140

 

 

Cemex SA CPO

164,300

123

*

 

URBI Desarrollos Urbanos

 

 

 

 

SA de CV

79,900

120

*

 

Organzacion Soriana S.A.B.

 

 

 

 

de C.V.

58,800

118

 

 

Mexichem SA de CV

98,418

94

 

 

Alfa SA de CV Series A

43,470

90

*

 

Empresas ICA SA de CV

48,203

69

*

 

Carso Infraestructura y

 

 

 

 

Construccion, SA

84,200

48

 

 

Grupo Continental SA

2,200

3

 

 

Grupo Aeroportuario del

 

 

 

 

Pacifico SA ADR

64

1

 

 

 

 

25,079

Netherlands (1.8%)

 

 

 

 

Unilever NV

347,927

8,385

 

 

Koninklijke KPN NV

405,365

5,709

 

 

ING Groep NV

465,914

4,370

 

 

Koninklijke (Royal) Philips

 

 

 

 

Electronics NV

232,466

4,296

 

 

Koninklijke Ahold NV

271,353

2,913

 

 

Akzo Nobel NV

57,162

2,376

 

 

Reed Elsevier NV

143,976

1,924

 

 

Heineken NV

56,324

1,900

 

 

TNT NV

88,445

1,867

 

 

ASML Holding NV

99,296

1,738

 

 

Aegon NV

365,607

1,519

 

^

European Aeronautic

 

 

 

 

Defence and Space Co.

74,237

1,235

 

 

Koninklijke DSM NV

41,622

1,159

 

 

Wolters Kluwer NV

63,645

1,127

 

 

Heineken Holding NV

26,933

818

 

 

Corio NV

14,106

754

 

 

Randstad Holding NV

29,955

582

 

 

SBM Offshore NV

32,544

572

 

 

Fugro NV

15,498

554

 

 

SNS REAAL

23,167

170

 

 

 

 

43,968

New Zealand (0.1%)

 

 

 

 

Telecom Corp. of

 

 

 

 

New Zealand Ltd.

397,520

539

 

 

Fletcher Building Ltd.

113,766

386

 

 

Contact Energy Ltd.

64,282

273

 

29

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Fisher & Paykel

 

 

 

Healthcare Corp. Ltd.

115,673

202

 

Auckland International

 

 

 

Airport Ltd.

188,027

201

 

Sky City Entertainment

 

 

 

Group Ltd.

99,624

192

 

Vector Ltd.

86,898

105

 

Port of Tauranga Ltd.

25,245

97

 

Sky Network Television Ltd.

31,721

72

 

Kiwi Income Property Trust

101,047

62

 

The Warehouse Group Ltd.

22,311

52

 

Fisher & Paykel Appliances

 

 

 

Holdings Ltd.

22,342

18

 

Air New Zealand Ltd.

16,371

9

 

 

 

2,208

Norway (0.5%)

 

 

 

StatoilHydro ASA

281,251

5,657

 

Orkla ASA

241,150

1,605

 

Telenor ASA

199,000

1,187

 

DnB NOR ASA

204,686

1,186

 

Yara International ASA

52,200

1,091

 

Norsk Hydro ASA

194,562

813

 

Seadrill Ltd.

69,600

670

 

Aker Solutions ASA

46,860

256

 

Storebrand ASA

105,400

250

* ^

Renewable Energy Corp. AS

19,217

181

 

 

 

12,896

Peru (0.0%)

 

 

 

Compania de Minas

 

 

 

Buenaventura SA ADR

49,068

620

 

Credicorp Ltd.

9,861

381

 

Volcan Compania Minera SA

163,826

78

 

Sociedad Minera

 

 

 

Cerro Verde SA

5,292

48

 

 

 

1,127

Philippines (0.1%)

 

 

 

Philippine Long Distance

 

 

 

Telephone Co.

9,130

374

 

Bank of Philippine Islands

278,400

231

 

Manila Electric Co.

175,700

212

 

SM Prime Holdings, Inc.

1,172,899

202

 

SM Investments Corp.

40,170

163

 

Ayala Corp.

29,280

141

 

Ayala Land, Inc.

996,800

121

 

Metropolitan Bank &

 

 

 

Trust Co.

196,000

104

 

Banco De Oro

178,000

99

 

Jollibee Foods Corp.

72,000

68

 

Petron Corp.

169,000

17

 

 

 

1,732

Poland (0.2%)

 

 

 

Powszechna Kasa

 

 

 

Oszczednosci Bank

 

 

 

Polski SA

115,724

1,307

 

Telekomunikacja Polska SA

159,498

1,205

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Bank Polska Kasa Opieki

 

 

 

Grupa Pekao SA

25,294

1,150

 

Polski Koncern Naftowy SA

76,346

779

 

Polish Oil & Gas

281,156

337

 

KGHM Polska Miedz SA

29,024

322

 

Bank Zachodni WBK SA

4,334

191

 

Bank Handlowy W

 

 

 

Warszawie

10,960

177

 

TVN SA

24,791

124

*

Getin Holding SA

57,726

120

*

Globe Trade Centre SA

17,744

105

 

BIG Bank Gdanski SA

58,517

83

*

Bank Rozwoju Eksportu SA

1,216

82

 

 

 

5,982

Portugal (0.3%)

 

 

 

Electricidade de

 

 

 

Portugal SA

633,095

2,156

 

Portugal Telecom SGPS SA

220,216

1,448

 

Banco Comercial

 

 

 

Portugues SA

767,075

892

 

Brisa-Auto Estradas

 

 

 

de Portugal SA

94,124

722

 

Galp Energia, SGPS, SA

 

 

 

B shares

45,353

412

 

Zon Multimedia Servicos

 

 

 

de Telecomunicacoes e

 

 

 

Multimedia SGPS SA

68,312

347

 

Banco Espirito Santo SA

32,271

307

 

Banco BPI SA

76,679

158

 

Cimpor-Cimento de

 

 

 

Portugal SA

31,984

146

 

 

 

6,588

Russia (1.3%)

 

 

 

OAO Gazprom

 

 

 

Sponsored ADR

526,438

10,483

 

LUKOIL Sponsored ADR

149,139

5,726

 

Surgutneftegaz OJSC ADR

370,865

2,398

 

Rosneft Oil Co. GDR

477,440

2,191

 

Sberbank

1,653,901

1,809

 

MMC Norilsk Nickel ADR

175,500

1,761

 

Mobile TeleSystems ADR

35,953

1,408

 

OAO Vimpel-

 

 

 

Communications

 

 

 

Sponsored ADR

78,780

1,142

 

Rostelecom ADR

29,729

1,107

 

Tatneft GDR

25,128

1,101

 

VTB Bank OJSC GDR

169,968

537

 

Polyus Gold ADR

44,294

492

 

Sistema JSFC GDR

23,852

180

*

Aeroflot

59,706

127

*

VTB Bank OJSC

81,731,479

126

 

Gazprom Neft

44,570

102

*

Mosenergo

3,243,601

97

*

Wimm-Bill-Dann

 

 

 

Foods ADR

2,187

96

 

30

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Cherepovets MK

 

 

 

Severstal GDR

26,945

94

 

OAO Transneft

270

89

*

Uralsvyazinform JSC

2,893,949

41

*

Irkutskenergo

85,421

32

*

Sibirtelecom

1,076,200

17

*

Inter Rao Ues OAO GDR

6,099

13

*

Federal Grid Co. of Unified

 

 

 

Energy System JSC GDR

6,603

10

*,1

TGK-13 GDR

5,021

4

*,1

TGK-11 GDR

1,802

3

 

 

 

31,186

Singapore (0.8%)

 

 

 

Singapore

 

 

 

Telecommunications Ltd.

1,761,000

2,964

 

United Overseas Bank Ltd.

306,000

2,766

 

DBS Group Holdings Ltd.

304,000

2,321

 

Oversea-Chinese

 

 

 

Banking Corp., Ltd.

614,000

2,076

 

Singapore Airlines Ltd.

171,670

1,315

 

Singapore Exchange Ltd.

298,000

1,067

 

Capitaland Ltd.

481,000

964

 

Singapore Press

 

 

 

Holdings Ltd.

433,000

946

 

Fraser & Neave Ltd.

493,000

930

 

Wilmar International Ltd.

421,679

729

 

Keppel Corp., Ltd.

206,000

642

 

City Developments Ltd.

119,000

526

 

ComfortDelGro Corp. Ltd.

571,000

468

 

Singapore Technologies

 

 

 

Engineering Ltd.

245,151

387

 

CapitaMall Trust

216,000

286

 

Sembcorp Industries Ltd.

132,000

222

 

StarHub Ltd.

127,840

208

 

Parkway Holdings Ltd.

162,266

174

 

SembCorp Marine Ltd.

122,600

152

 

Olam International Ltd.

170,000

150

 

Golden Agri-Resources Ltd.

1,118,000

149

 

United Industrial Corp., Ltd.

154,000

140

 

Venture Corp. Ltd.

36,000

132

 

Capitacommercial Trust

183,000

126

 

Jardine Cycle N Carriage Ltd.

18,000

115

 

SMRT Corp. Ltd.

107,000

113

 

Cosco Corp. Singapore Ltd.

120,000

66

 

Singapore Post Ltd.

134,000

64

 

Noble Group Ltd.

86,400

63

 

MobileOne Ltd.

59,900

53

 

United Overseas Land Ltd.

37,000

48

 

Neptune Orient Lines Ltd.

50,000

42

 

Keppel Land Ltd.

30,000

39

 

Haw Par Brothers

 

 

 

International Ltd.

14,000

33

 

Singapore Land Ltd.

13,000

30

 

Wing Tai Holdings Ltd.

55,000

26

 

Yanlord Land Group Ltd.

50,000

26

 

Guocoland Ltd.

31,000

23

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

STATS ChipPAC Ltd.

22,000

7

 

Allgreen Properties Ltd.

19,000

5

 

SIA Engineering Co., Ltd.

3,000

4

*

Chartered Semiconductor

 

 

 

Manufacturing Ltd.

25,000

4

 

Wheelock Properties

 

 

 

(Singapore), Ltd.

5,000

3

 

Hotel Properties Ltd.

3,000

2

 

Cerebos Pacific Ltd.

1,000

2

 

Pacific Century Regional

 

 

 

Developments Ltd.

4,000

 

People’s Food Holdings Ltd.

1,000

 

 

 

20,608

South Africa (1.5%)

 

 

 

MTN Group Ltd.

420,074

4,717

 

Sasol Ltd.

154,443

4,559

 

Standard Bank Group Ltd.

346,265

2,749

 

Naspers Ltd.

116,500

1,940

 

AngloGold Ltd.

80,154

1,523

 

Impala Platinum

 

 

 

Holdings Ltd.

139,724

1,458

 

FirstRand Ltd.

883,024

1,283

 

Gold Fields Ltd.

152,558

1,062

 

Anglo Platinum Ltd.

22,750

940

 

Sanlan Ltd.

535,325

879

 

Growthpoint Properties Ltd.

649,853

868

 

ABSA Group Ltd.

74,320

778

 

Remgro Ltd.

104,363

767

 

Bidvest Group Ltd.

70,459

751

 

Telkom South Africa Ltd.

62,106

674

*

Harmony Gold

 

 

 

Mining Co., Ltd.

91,250

667

 

Shoprite Holdings Ltd.

120,847

638

 

Nedbank Group Ltd.

62,640

608

 

Steinhoff International

 

 

 

Holdings Ltd.

409,362

597

 

Tiger Brands Ltd.

38,000

551

 

Reunert Ltd.

90,512

457

 

Aveng Ltd.

88,731

439

 

Murray & Roberts

 

 

 

Holdings Ltd.

63,198

428

 

Massmart Holdings Ltd.

47,318

424

*

Aspen Pharmacare

 

 

 

Holdings Ltd.

112,835

395

 

RMB Holdings Ltd.

162,455

379

 

ArcelorMittal

 

 

 

South Africa, Ltd.

39,038

369

 

African Bank

 

 

 

Investments Ltd.

131,675

361

 

Sappi Ltd.

50,826

313

 

Truworths International Ltd.

79,345

270

 

Pretoria Portland

 

 

 

Cement Co. Ltd.

86,881

267

 

Imperial Holdings Ltd.

43,300

247

 

Barloworld Ltd.

42,234

247

 

Kumba Iron Ore Ltd.

16,050

211

 

31

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Adcock Ingram

 

 

 

Holdings Limited

58,959

206

 

Investec Ltd.

40,402

199

 

Foschini Ltd.

42,761

176

 

Woolworths Holdings Ltd.

151,822

175

 

Network Healthcare

 

 

 

Holdings Ltd.

242,400

170

 

Liberty Group Ltd.

26,100

164

 

Nampak Ltd.

117,523

160

 

African Rainbow

 

 

 

Minerals Ltd.

14,992

153

 

Pick’n Pay Stores Ltd.

48,200

152

 

Spar Group Ltd.

26,127

152

 

Sun International Ltd.

16,331

136

 

AVI Ltd.

79,600

125

 

Fountainhead Property Trust

226,200

120

 

Medi-Clinic Corp., Ltd.

68,519

117

 

Wilson Bayly

 

 

 

Holmes-Ovcon Ltd.

10,024

117

 

AECI Ltd.

21,456

116

 

Datatec Ltd.

72,480

114

 

African Oxygen Ltd.

42,472

112

 

JSE Ltd.

20,980

108

 

Mondi Ltd.

23,129

97

 

Discovery Holdings, Ltd.

37,735

93

 

Mr. Price Group Ltd.

36,745

90

 

Reinet Investments

 

 

 

SA ZAR Line

65,477

83

 

ApexHi Properties Ltd.

 

 

 

Class B

50,881

79

*

Mvelaphanda Resources Ltd.

25,306

75

 

Exxaro Resources Ltd.

10,391

69

 

Northam Platinum Ltd.

20,157

63

 

Metropolitan Holdings Ltd.

59,800

61

 

Grindrod Ltd.

40,400

58

 

Tongaat-Hulett

10,432

58

 

Highveld Steel &

 

 

 

Vanadium Corp. Ltd.

9,157

57

 

New Clicks Holdings Ltd.

34,083

55

*

Avusa, Ltd.

18,660

45

 

Illovo Sugar Ltd.

17,275

39

 

Lewis Group Ltd.

9,907

38

*

Eqstra Holdings Ltd.

34,707

37

 

Group Five Ltd.

8,306

35

 

ApexHi Properties Ltd.

 

 

 

Class A

25,715

32

 

Santam Ltd.

3,743

27

*

Merafe Resources Ltd.

187,575

22

*

Metorex Ltd.

37,988

21

*

Liberty Holdings Ltd.

1,000

21

*

Hulamin Ltd.

11,524

19

 

Pick’n Pay Holdings Ltd.

3,058

4

 

Allied Technologies Ltd.

761

4

 

Gold Reef Resorts Ltd.

1,280

2

 

Mvelaphanda Group Ltd.

2,570

1

 

 

 

36,873

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

South Korea (2.6%)

 

 

1

 

Samsung

 

 

 

 

Electronics Co., Ltd. GDR

59,375

12,258

 

 

POSCO ADR

85,946

5,775

 

 

Shinhan Financial

 

 

 

 

Group Co., Ltd. ADR

53,469

2,660

 

 

Korea Electric

 

 

 

 

Power Corp. ADR

224,097

2,219

*

 

KB Financial Group, Inc.

78,696

1,937

 

 

SK Telecom Co., Ltd. ADR

110,505

1,902

 

^

LG Electronics Inc.

23,755

1,774

 

 

Hyundai Motor Co., Ltd.

35,974

1,662

 

^

Hyundai Heavy

 

 

 

 

Industries Co., Inc.

12,484

1,649

 

 

KT Corp. ADR

122,173

1,533

 

 

Samsung Fire & Marine

 

 

 

 

Insurance Co.

10,377

1,374

 

 

Samsung Electronics Co., Ltd.

2,939

1,239

*

 

NHN Corp.

10,476

1,115

 

 

Samsung Corp.

34,390

1,102

 

 

Shinsegae Co., Ltd.

3,097

1,087

 

 

KT & G Corp.

15,412

989

 

 

S-Oil Corp.

18,780

952

 

 

SK Energy Co., Ltd.

15,737

905

 

 

Hyundai Mobis

14,344

842

 

^

DC Chemical Co., Ltd.

4,774

781

 

^

LG Chem Ltd.

12,625

766

 

^

Samsung Securities Co. Ltd.

14,780

752

 

^

Samsung Heavy

 

 

 

 

Industries Co., Ltd.

44,520

686

 

 

LG Corp.

16,415

657

 

^

Hyundai Engineering &

 

 

 

 

Construction Co., Ltd.

15,734

646

 

 

SK Holdings Co Ltd

8,860

594

 

 

Hana Financial Group Inc.

36,380

578

*

^

Kia Motors

59,080

498

 

 

Amorepacific Corp.

983

432

 

^

Doosan Heavy Industries

 

 

 

 

and Construction Co., Ltd.

8,108

357

 

^

Hyundai Merchant

 

 

 

 

Marine Co., Ltd.

13,160

350

*

^

Hynix Semiconductor Inc.

39,830

341

 

 

LG. Philips LCD Co., Ltd.

18,330

340

 

 

Hyundai Development Co.

12,540

339

*

^

Samsung SDI Co. Ltd.

5,851

329

 

 

Samsung

 

 

 

 

Electro-Mechanics Co.

10,650

314

 

 

Kangwon Land Inc.

29,750

304

 

^

GS Engineering &

 

 

 

 

Construction Corp.

6,370

303

 

 

Samsung

 

 

 

 

Engineering Co., Ltd.

7,464

299

*

^

Doosan Corp.

4,026

292

 

^

LG Household &

 

 

 

 

Health Care Ltd.

2,030

290

*

 

Korea Telecom Freetel

13,610

285

 

32

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

^

Samsung Techwin Co., Ltd.

13,400

284

 

 

Daewoo Securities Co., Ltd.

28,850

274

 

 

Cheil Industrial, Inc.

8,280

270

 

 

Korea Exchange Bank

45,350

252

 

 

Yuhan Corp.

1,711

249

 

 

Hyundai Mipo

 

 

 

 

Dockyard Co., Ltd.

2,880

247

 

 

Woongjin Coway Co., Ltd.

12,000

247

 

 

Hyundai Steel Co.

8,400

244

 

 

LS Cable Ltd.

5,450

230

 

 

Hankook Tire Co. Ltd.

22,460

217

 

 

Woori Finance

 

 

 

 

Holdings Co., Ltd.

40,280

216

 

 

Korean Air Co. Ltd.

7,570

214

 

 

S1 Corp.

6,030

205

*

 

Hite Brewery Co., Ltd.

1,492

199

 

 

Hanwha Corp.

12,710

199

 

 

Lotte Shopping Co., Ltd.

1,441

197

 

 

Hyundai Department

 

 

 

 

Store Co., Ltd.

3,825

187

 

 

Korea Investment

 

 

 

 

Holdings Co., Ltd.

9,060

186

 

 

Samsung Card Co. Ltd.

7,557

178

 

 

Hyundai Securities Co.

28,810

177

 

 

Kumkang Korea

 

 

 

 

Chemical Co., Ltd.

901

176

 

 

LG Telecom Ltd.

24,424

174

 

 

Daelim Industrial Co.

5,920

171

 

 

Korea Gas Corp.

4,530

171

*

 

CJ Cheiljedang Corp.

1,457

170

 

^

Mirae Asset

 

 

 

 

Securities Co., Ltd.

3,128

156

 

^

Woori Investment &

 

 

 

 

Securities Co., Ltd.

16,490

154

 

^

Daewoo Engineering &

 

 

 

 

Construction Co., Ltd.

20,859

145

 

 

Pusan Bank

27,790

142

 

^

STX Shipbuilding Co., Ltd.

11,800

136

 

^

Hanjin Shipping Co., Ltd.

10,370

136

 

 

Sindo Ricoh Co., Inc.

3,815

135

 

 

Nong Shim Co. Ltd.

822

133

 

 

Daegu Bank

26,120

133

 

 

GS Holdings Corp.

6,650

133

 

 

Doosan Infracore Co., Ltd.

15,580

133

 

 

Hyosung Corp.

5,570

133

 

 

Daewoo International Corp.

11,950

132

 

 

Dongkuk Steel Mill Co., Ltd.

7,920

129

 

 

Lotte Confectionery Co., Ltd.

150

128

 

 

Industrial Bank of Korea

21,840

126

 

 

LG Dacom Corp.

8,660

122

 

 

Dongbu Insurance Co., Ltd.

11,270

115

 

 

Daewoo Shipbuilding &

 

 

 

 

Marine Engineering Co., Ltd.

12,150

114

 

 

Hanjin Heavy Industries &

 

 

 

 

Construction Co., Ltd.

7,750

110

 

 

Halla Climate Control Corp.

15,910

109

 

 

 

 

 

 

Market

 

 

 

 

 

Value

 

 

 

 

Shares

($000)

*

 

STX Corp.

 

6,763

105

*

 

STX Pan Ocean Co. Ltd.

 

184,000

100

 

 

Samsung Fine

 

 

 

 

 

Chemicals Co., Ltd.

 

3,600

99

 

 

Lotte Chilsung

 

 

 

 

 

Beverage Co., Ltd.

 

181

97

 

 

Cheil Communications Inc.

 

734

95

 

 

Honam Petrochemical Corp.

 

2,200

90

 

 

Daishin Securities Co.

 

7,860

87

 

 

NCsoft Corp.

 

3,310

85

 

 

Pacific Corp.

 

1,429

84

*

 

CJ Corp.

 

2,136

57

 

 

Hanwha Chemical Corp.

 

12,990

56

*

 

SK Networks Co., Ltd.

 

8,790

56

 

 

POSCO

 

154

42

 

^

Kumho Industrial Co., Ltd.

 

4,450

41

 

 

Hyundai Hysco

 

7,010

39

 

 

SKC Co. Ltd.

 

3,460

34

 

 

Hyundai Autonet Co., Ltd.

 

9,140

26

*

 

Daum Communications Corp.

991

23

 

 

Glovis Co., Ltd.

 

510

23

 

 

Hite Holdings Co., Ltd.

 

1,127

20

 

 

Shinhan Financial

 

 

 

 

 

Group Co. Ltd.

 

790

19

*

^

Ssangyong Motor Co.

 

17,840

15

*

 

Poongsan Corp.

 

2,146

10

*

 

Lotte Midopa Co., Ltd.

 

2,040

10

 

 

Daishin Securities Co.

 

2,160

9

*

 

KB Financial Group, Inc.

 

220

5

 

 

Poongsan Holdings Corp.

 

403

3

 

 

 

 

 

62,925

Spain (3.4%)

 

 

 

 

 

Telefonica SA

 

1,067,234

19,760

 

 

Banco Santander Central

 

 

 

 

 

Hispano SA

 

1,412,968

15,281

 

 

Banco Bilbao Vizcaya

 

 

 

 

 

Argentaria SA

 

832,377

9,661

 

 

Iberdrola SA

 

1,109,669

8,031

 

 

Repsol YPF SA

 

274,377

5,218

 

^

Banco Popular Espanol SA

 

282,196

2,568

*

 

Union Fenosa, SA

 

107,475

2,280

 

^

ACS, Actividades de

 

 

 

 

 

Contruccion y

 

 

 

 

 

Servisios, SA

 

57,942

2,151

 

 

Industria de Diseno

 

 

 

 

 

Textil SA

 

56,396

1,906

 

^

Banco de Sabadell SA

 

268,560

1,832

 

 

Gas Natural SDG SA

 

49,990

1,539

 

 

Abertis Infraestructuras SA

 

73,222

1,257

 

 

Enagas SA

 

44,288

865

 

 

Grifols SA

 

43,182

859

 

^

Acerinox SA

 

65,774

827

 

 

Gamesa Corporacion

 

 

 

 

 

Tecnologica SA

 

48,112

789

 

^

Bankinter SA

 

63,920

690

 

 

Criteria Caixacorp SA

 

211,604

685

 

33

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

Red Electrica de Espana SA

15,386

674

 

 

Grupo Ferrovial SA

20,529

633

*

 

Iberdrola Renovables

193,321

588

 

 

Acciona SA

5,691

538

 

^

Zardoya Otis SA

26,730

506

 

 

Corporacion Mapfre SA

154,784

493

 

^

Fomento de Construc

 

 

 

 

y Contra SA

11,620

462

 

 

Cintra Concesiones de

 

 

 

 

Infraestructuras de

 

 

 

 

Transport SA

50,532

450

 

 

Banco de Valencia SA

43,121

399

 

 

Compania Espanola de

 

 

 

 

Petroleos SA

3,874

343

*

 

Banco Santander SA

25,202

277

 

^

Sacyr Vallehermoso SA

20,849

192

 

^

Banco Espanol de

 

 

 

 

Credito, SA

13,128

167

 

^

Gestevision Telecinco SA

17,540

141

 

 

Corporacion Financiera

 

 

 

 

Alba SA

4,417

130

 

^

Promotora de

 

 

 

 

Informaciones SA

8,165

32

 

 

 

 

82,224

Sweden (1.5%)

 

 

 

 

Nordea Bank AB

571,558

4,581

 

 

Telefonaktiebolaget LM

 

 

 

 

Ericsson AB Class B

654,474

4,455

 

 

Svenska Handelsbanken

 

 

 

 

AB A Shares

134,542

2,472

 

^

Hennes & Mauritz

 

 

 

 

AB B Shares

66,650

2,390

 

 

TeliaSonera AB

514,000

2,261

 

 

Sandvik AB

265,700

1,724

 

 

Volvo AB B Shares

320,100

1,673

 

 

Investor AB B Shares

104,400

1,575

 

^

Skandinaviska Enskilda

 

 

 

 

Banken AB A Shares

145,600

1,443

 

 

Atlas Copco AB A Shares

147,900

1,240

 

 

SKF AB B Shares

104,400

951

 

 

Svenska Cellulosa

 

 

 

 

AB B Shares

123,690

913

 

 

Volvo AB A Shares

169,534

876

 

 

Assa Abloy AB

76,612

855

 

 

Swedish Match AB

58,332

810

 

 

Skanska AB B Shares

89,162

783

 

 

Atlas Copco AB B Shares

104,400

782

 

 

Tele2 AB B Shares

90,500

772

 

^

Electrolux AB Series B

83,807

772

 

 

Securitas AB B Shares

77,200

741

 

^

Swedbank AB A Shares

87,000

719

 

 

Scania AB B Shares

83,860

689

 

 

SSAB Svenskt Stal AB

 

 

 

 

Series A

67,977

687

 

 

Alfa Laval AB

65,100

470

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Industrivarden AB A Shares

45,452

349

 

Holmen AB

12,300

347

^

Husqvarna AB B Shares

49,206

341

 

Industrivarden AB C Shares

21,672

146

^

Boliden AB

55,711

134

 

SSAB Svenskt Stal AB

 

 

 

Series B

13,229

120

 

 

 

36,071

Switzerland (6.2%)

 

 

 

Nestle SA (Registered)

879,263

34,192

 

Novartis AG (Registered)

505,294

25,648

 

Roche Holdings AG

156,795

23,978

*

UBS AG

651,857

11,060

 

Credit Suisse Group

 

 

 

(Registered)

260,528

9,742

 

Zurich Financial Services AG

32,643

6,623

 

ABB Ltd.

503,639

6,608

 

Syngenta AG

22,899

4,281

 

Swiss Re (Registered)

82,303

3,432

 

Holcim Ltd. (Registered)

44,396

2,522

*

Compagnie Financiere

 

 

 

Richemont SA

107,375

2,257

 

Julius Baer Holding, Ltd.

50,706

1,983

 

Swisscom AG

5,280

1,613

 

Synthes, Inc.

9,957

1,285

 

Swatch Group AG (Bearer)

7,932

1,238

 

SGS Societe Generale de

 

 

 

Surveillance Holding SA

 

 

 

(Registered)

1,254

1,235

 

Adecco SA (Registered)

29,773

1,036

 

Givaudan SA

1,517

1,034

*

Actelion Ltd.

19,335

1,021

 

Geberit AG

9,468

984

 

Lonza AG (Registered)

11,706

972

 

Swatch Group

 

 

 

AG (Registered)

26,396

756

 

Swiss Life Holding

8,273

745

 

Kuehne & Nagel

 

 

 

International AG

12,160

736

 

Lindt & Spruengli

 

 

 

AG Regular

28

679

 

Pargesa Holding SA

8,807

675

 

Baloise Holdings AG

12,611

674

 

Nobel Biocare Holding AG

35,390

608

 

Sonova Holding AG

11,555

480

 

Petroplus Holdings AG

16,252

433

 

Lindt & Spruengli AG

189

407

 

Clariant AG

62,131

385

^

Straumann Holding AG

1,737

295

 

BKW FMB Energie AG

2,837

256

 

Schindler Holding AG

 

 

 

(Registered)

4,712

216

 

EFG International

7,990

172

* ^

OC Oerlikon Corp AG

1,853

144

 

34

FTSE All-World ex-US Index Fund

 

 

 

Market

 

 

Value

 

Shares

($000)

Schindler Holding AG

 

 

(Bearer Participation

 

 

Certificates)

3,225

140

 

 

150,545

Taiwan (2.2%)

 

 

Taiwan Semiconductor

 

 

Manufacturing Co.,

 

 

Ltd. ADR

1,046,922

8,648

Hon Hai Precision

 

 

Industry Co., Ltd.

1,583,710

3,823

United Microelectronics

 

 

Corp. ADR

1,100,130

2,695

Formosa Plastic Corp.

1,252,000

2,113

Chunghwa

 

 

Telecom Co., Ltd.

125,790

2,071

High Tech Computer Corp.

165,140

1,957

AU Optronics Corp. ADR

258,624

1,785

Nan Ya Plastic Corp.

1,252,000

1,735

MediaTek Inc.

176,170

1,578

Formosa Chemicals &

 

 

Fibre Corp.

907,000

1,466

China Steel Corp.

1,971,857

1,424

Asustek Computer Inc.

932,492

1,336

Cathay Financial

 

 

Holding Co.

1,090,050

1,171

Advanced Semiconductor

 

 

Engineering Inc. ADR

485,076

1,053

Taiwan Semiconductor

 

 

Manufacturing Co., Ltd.

645,018

939

Siliconware Precision

 

 

Industries Co. ADR

158,177

892

Delta Electronics Inc.

378,940

860

Fubon Financial

 

 

Holding Co., Ltd.

1,267,000

768

Acer Inc.

585,738

756

Uni-President

 

 

Enterprises Co.

853,436

730

Compal Electronics Inc.

940,873

675

Chinatrust Financial

 

 

Holding

2,103,410

601

Taiwan Cellular Corp.

398,609

551

Innolux Display Corp.

719,200

539

Mega Financial

 

 

Holding Co. Ltd.

1,943,000

538

China Development

 

 

Financial Holding Corp.

2,603,736

512

Foxconn

 

 

Technology Co., Ltd.

203,560

499

Fuhwa Financial

 

 

Holdings Co., Ltd.

1,253,845

491

Hau Nan Financial

 

 

Holdings Co., Ltd.

911,000

480

Far Eastern Textile Ltd.

818,941

475

Formosa

 

 

Petrochemical Corp.

207,000

473

Quanta Computer Inc.

444,426

468

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Taiwan Cooperative Bank

973,037

468

 

First Financial

 

 

 

Holding Co., Ltd.

924,335

436

 

Far EasTone

 

 

 

Telecommunications

 

 

 

Co., Ltd.

391,643

415

 

Chi Mei

 

 

 

Optoelectronics Corp.

1,123,872

413

 

Synnex Technology

 

 

 

International Corp.

285,535

371

 

Lite-On Technology Corp.

549,408

343

 

Shin Kong Financial

 

 

 

Holdings Co.

1,151,434

305

 

SinoPac Holdings

1,296,000

275

 

Chang Hwa

 

 

 

Commercial Bank

659,000

252

 

Pou Chen Corp.

512,502

234

*

Powerchip

 

 

 

Semiconductor Corp.

1,973,255

231

 

HannStar Display Corp.

1,187,463

216

 

Realtek

 

 

 

Semiconductor Corp.

131,580

197

 

Catcher

 

 

 

Technology Co., Ltd.

76,230

194

 

Inventec Co., Ltd.

561,490

176

 

Taiwan Cement Corp.

331,583

170

 

Taiwan Fertilizer Co., Ltd.

136,000

168

 

Largan Precision Co., Ltd.

16,381

167

 

Wistron Corp.

209,128

165

 

Chunghwa Picture

 

 

 

Tubes, Ltd.

1,617,000

164

*

Tatung Co., Ltd.

883,000

157

 

Asia Cement Corp.

251,940

149

 

Macronix

 

 

 

International Co., Ltd.

528,149

147

 

Giant

 

 

 

Manufacturing Co., Ltd.

59,850

145

 

Taishin Financial Holdings

919,000

137

 

Wan Hai Lines Ltd.

316,050

132

 

President Chain Store Corp.

57,000

132

 

Cheng Shin Rubber

 

 

 

Industry Co., Ltd.

118,668

132

 

Walsin Lihwa Corp.

558,000

129

 

Evergreen Marine Corp.

233,000

120

 

Chicony Electronics

 

 

 

Co., Ltd.

95,444

119

 

Formosa Taffeta Co., Ltd.

197,000

116

 

Chunghwa Telecom Co., Ltd.

70,000

116

 

Taiwan Secom Corp., Ltd.

92,000

113

 

Advantech Co., Ltd.

75,872

106

 

Coretronic Corp.

157,386

101

 

Cheng Uei Precision

 

 

 

Industry Co., Ltd.

70,517

97

 

Taiwan Glass

 

 

 

Industrial Corp.

196,430

95

*

Nanya Technology Corp.

522,467

93

 

35

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Nan Ya Printed Circuit

 

 

 

Board Corp.

39,237

93

*

Taiwan Business Bank

455,000

89

 

Yageo Corp.

552,000

85

 

KGI Securities Co., Ltd.

363,000

84

 

Unimicron Technology Corp.

148,975

83

 

E.Sun Financial

 

 

 

Holding Co., Ltd.

351,520

82

 

U-Ming Marine

 

 

 

Transport Corp.

67,000

78

 

Ton Yi Industrial Corp.

244,000

76

 

Polaris Securities Co., Ltd.

339,359

76

 

Mitac International Corp.

203,736

75

 

Teco Electric &

 

 

 

Machinery Co., Ltd.

311,000

75

*

China Airlines

300,134

72

*

CMC Magnetics Corp.

512,000

70

*

Via Technologies Inc.

283,000

69

 

Feng Hsin Iron &

 

 

 

Steel Co., Ltd.

95,790

67

 

Yulon Motor Co., Ltd.

157,898

63

 

Novatek

 

 

 

Microelectronics Corp., Ltd.

55,723

62

*

ProMOS Technologies Inc.

894,000

59

 

Capital Securities Corp.

275,055

52

 

Qisda Corp.

197,640

48

 

D-Link Corp.

44,325

30

 

Wintek Corp.

117,000

30

 

Yuen Foong Yu Paper

 

 

 

Manufacturing Co., Ltd.

126,959

29

 

Yang Ming Marine Transport

100,369

28

 

Eternal Chemical Co., Ltd.

52,448

27

 

Asia Optical Co., Inc.

20,259

27

*

EVA Airways Corp.

102,000

25

 

Micro-Star

 

 

 

International Co., Ltd.

58,859

25

*

Ritek Corp.

191,000

24

*

Winbond Electronics Corp.

229,000

24

 

Transcend Information Inc.

13,685

23

*

Far Eastern

 

 

 

International Bank

147,000

22

 

Faraday Technology Corp.

20,318

21

 

Cathay Construction Corp.

98,000

21

 

Waterland Financial Holdings

129,971

21

 

Zyxel Communications Corp.

31,688

21

 

President Securities Corp.

72,289

20

 

Oriental Union Chemical Corp.

47,083

20

 

Inventec Appliances Corp.

19,965

19

 

China Motor Co., Ltd.

55,105

19

*

Inotera Memories, Inc.

78,320

19

 

Vanguard International

 

 

 

Semiconductor Corp.

53,466

16

 

Compal Communications, Inc.

23,520

15

 

Sunplus Technology Co., Ltd.

34,620

15

 

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

Taiwan Life

 

 

 

 

Insurance Co., Ltd.

 

21,315

12

 

Lite-On IT Corp.

 

3,039

1

 

 

 

 

53,810

Thailand (0.2%)

 

 

 

*

PTT Public Co. Ltd. (Foreign)

154,700

711

*

PTT Exploration and

 

 

 

 

Production

 

 

 

 

Public Co. Ltd. (Foreign)

 

239,372

599

 

Siam Cement

 

 

 

 

Public Co. Ltd. (Foreign)

 

169,962

514

 

Kasikornbank

 

 

 

 

Public Co. Ltd. (Foreign)

 

339,200

493

 

Bangkok Bank

 

 

 

 

Public Co., Ltd. (Foreign)

 

221,497

448

*

Advanced Info Service

 

 

 

 

Public Co., Ltd. (Foreign)

 

154,400

325

 

Siam Commercial Bank

 

 

 

 

Public Co. Ltd. (Foreign)

 

172,186

267

*

PTT Public Co., Ltd. (Local)

 

29,000

133

 

PTT Aromatics &

 

 

 

 

Refining Public Co. Ltd.

 

 

 

 

(Foreign)

 

431,561

125

 

C.P. 7-Eleven

 

 

 

 

Public Co. Ltd. (Foreign)

 

562,800

124

*

PTT Exploration and

 

 

 

 

Production Public Co. Ltd.

 

 

 

(Local)

 

49,400

124

 

IRPC

 

 

 

 

Public Co., Ltd. (Foreign)

 

1,827,500

119

 

BEC World

 

 

 

 

Public Co. Ltd. (Foreign)

 

231,000

111

*

Electricity Generating

 

 

 

 

Public Co. Ltd. (Local)

 

62,100

106

*

Advanced Info Service

 

 

 

 

Public Co., Ltd. (Local)

 

47,400

100

 

Ratchaburi Electricity

 

 

 

 

Generating Holding

 

 

 

 

Public Co., Ltd.

 

95,800

85

 

Bank of Ayudhya PLC

 

 

 

 

(Foreign)

 

286,500

82

 

Thai Oil Public Co., Ltd.

 

 

 

 

(Foreign)

 

133,400

80

 

Banpu Public Co. Ltd.

 

 

 

 

(Foreign)

 

15,100

72

 

PTT Chemical Public Co., Ltd.

 

 

 

(Foreign)

 

62,900

63

*

Banpu Public Co. Ltd. (Local)

11,200

53

 

Land and Houses

 

 

 

 

Public Co. Ltd. (Foreign)

 

421,100

45

 

Thai Military Bank

 

 

 

 

Public Co., Ltd. (Foreign)

 

2,736,800

45

 

Charoen Pokphand Foods

 

 

 

 

Public Co., Ltd. (Foreign)

 

467,300

41

 

36

FTSE All-World ex-US Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Electricity Generating

 

 

 

Public Co. Ltd. (Foreign)

22,100

37

 

Central Pattana

 

 

 

Public Co. Ltd. (Foreign)

136,500

37

 

Thai Union Frozen

 

 

 

Products Public Co., Ltd.

 

 

 

(Foreign)

68,500

32

 

Total Access

 

 

 

Communications PLC

52,800

32

 

Krung Thai Bank

 

 

 

Public Co. Ltd. (Foreign)

261,000

31

 

Thoresen Thai Agencies

 

 

 

Public Co. Ltd. (Foreign)

73,000

25

 

Airports of Thailand

 

 

 

Public Co. Ltd. (Foreign)

41,900

23

*

Siam City Bank

 

 

 

Public Co., Ltd. (Foreign)

75,700

17

*

TISCO Finance

 

 

 

Public Co. Ltd. (Foreign)

47,500

12

 

Siam City Cement

 

 

 

Public Co. Ltd. (Foreign)

2,200

7

 

Thai Airways International

 

 

 

Public Co. Ltd. (Foreign)

15,600

3

 

Siam Makro Public Co. Ltd.

 

 

 

(Foreign)

1,700

3

 

Delta Electronics (Thailand)

 

 

 

Public Co. Ltd. (Foreign)

7,200

2

 

Thanachart Capital

 

 

 

Public Co. Ltd. (Foreign)

9,300

2

 

Italian-Thai Development

 

 

 

Public Co. Ltd. (Foreign)

19,500

1

 

True Corp. Public Co. Ltd.

 

 

 

(Foreign)

27,000

1

 

 

 

5,130

Turkey (0.2%)

 

 

 

Anadolu Efes Biracilik ve

 

 

 

Malt Sanayii A.S.

117,771

997

 

Akbank T.A.S.

182,730

628

*

KOC Holding A.S.

308,351

575

 

Turkiye Is Bankasi A.S.

 

 

 

C Shares

187,063

532

*

Turkiye Garanti Bankasi A.S.

273,216

459

 

Eregli Demir ve Celik

 

 

 

Fabrikalari A.S.

120,717

372

*

Yapi ve Kredi Bankasi A.S.

185,862

236

 

Turkcell Iletisim

 

 

 

Hizmetleri A.S.

45,181

227

 

Tupras-Turkiye Petrol

 

 

 

Rafinerileri A.S.

17,399

220

*

Turk Telekomunikasyon A.S.

91,228

193

 

Turkiye Halk Bankasi A.S.

55,013

151

 

Haci Omer Sabanci

 

 

 

Holding A.S.

56,306

137

 

Enka Insaat ve Sanayi A.S.

32,554

122

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Turkiye Vakiflar

 

 

 

Bankasi T.A.O.

113,472

111

*

Dogan Sirketler Grubu

 

 

 

Holding A.S.

92,080

73

 

Ford Otomotiv Sanayi A.S.

11,010

35

 

Arcelik A.S.

18,827

27

 

Tofas Turk Otomobil

 

 

 

Fabrikasi A.S.

22,503

26

 

 

 

5,121

United Kingdom (15.8%)

 

 

 

BP PLC

4,214,515

34,355

 

HSBC Holdings PLC

2,677,636

31,714

 

Vodafone Group PLC

11,730,946

22,567

 

GlaxoSmithKline PLC

1,171,189

22,515

 

Royal Dutch Shell PLC

 

 

 

Class A

790,823

21,728

 

Royal Dutch Shell PLC

 

 

 

Class B

606,179

16,435

 

AstraZeneca Group PLC

325,804

13,807

 

British American

 

 

 

Tobacco PLC

448,459

12,301

 

BG Group PLC

755,925

11,115

 

Rio Tinto PLC

224,597

10,491

 

Tesco PLC

1,763,058

9,660

 

Diageo PLC

564,748

8,618

 

BHP Billiton PLC

489,676

8,315

 

Anglo American PLC

294,811

7,397

 

Reckitt Benckiser

 

 

 

Group PLC

158,627

6,710

 

Unilever PLC

284,401

6,389

 

National Grid Transco PLC

542,295

6,109

 

Imperial Tobacco

 

 

 

Group PLC

226,270

6,064

 

Standard Chartered PLC

315,323

5,211

 

Barclays PLC

1,804,159

5,172

 

BAE Systems PLC

798,242

4,487

 

Centrica PLC

834,703

4,102

 

Lloyds TSB Group PLC

1,267,660

4,097

 

Royal Bank of Scotland

 

 

 

Group PLC

3,659,793

4,031

 

SABMiller PLC

253,471

4,026

 

Scottish & Southern

 

 

 

Energy PLC

190,771

3,739

 

Aviva PLC

583,373

3,480

 

BT Group PLC

1,741,666

3,273

 

Prudential PLC

544,154

2,733

 

Xstrata PLC

159,469

2,728

 

British Energy Group PLC

227,418

2,720

 

Cadbury PLC

293,491

2,695

 

Morrison

 

 

 

Supermarkets PLC

599,281

2,552

 

Man Group PLC

390,011

2,252

 

Reed Elsevier PLC

247,497

2,172

 

Rolls-Royce Group PLC

400,878

2,121

 

Pearson PLC

191,925

1,912

 

37

FTSE All-World ex-US Index Fund

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

HBOS PLC

1,160,785

1,901

 

 

Compass Group PLC

404,233

1,880

 

 

Land Securities Group PLC

103,390

1,835

 

 

Standard Life PLC

473,398

1,833

 

 

Smith & Nephew PLC

196,900

1,803

 

 

British Sky Broadcasting

 

 

 

 

Group PLC

292,445

1,780

*

 

United Utilities Group PLC

155,102

1,751

 

 

J. Sainsbury PLC

374,067

1,709

 

 

British American

 

 

 

 

Tobacco PLC GBP Line

61,901

1,694

 

 

Shire Ltd.

124,679

1,634

 

 

Royal & Sun Alliance

 

 

 

 

Insurance Group PLC

726,328

1,615

 

 

WPP Group PLC

262,262

1,569

 

 

Legal & General

 

 

 

 

Group PLC

1,341,675

1,543

 

 

Capita Group PLC

149,327

1,543

 

 

Tullow Oil PLC

160,356

1,362

 

 

Marks & Spencer

 

 

 

 

Group PLC

354,355

1,256

 

 

Experian Group Ltd.

224,690

1,239

 

 

International Power PLC

330,717

1,183

 

 

British Land Co., PLC

116,475

1,161

 

 

Severn Trent PLC

51,546

1,139

 

 

British American Tobacco

 

 

 

 

PLC ZAR Line

41,740

1,137

 

 

Cable and Wireless PLC

563,048

1,116

 

 

Smiths Group PLC

85,505

1,101

 

 

Carnival PLC

49,034

1,078

 

 

Kingfisher PLC

531,139

980

 

 

Group 4 Securicor PLC

323,239

979

 

 

Old Mutual PLC

1,179,297

955

 

 

Associated British

 

 

 

 

Foods PLC

84,705

948

 

 

Hammerson PLC

75,605

871

 

 

3i Group PLC

97,784

853

 

 

Liberty International PLC

76,569

852

 

 

The Sage Group PLC

303,826

851

 

 

Rexam PLC

137,030

826

 

 

Cobham PLC

268,328

815

 

 

Next PLC

47,391

806

 

 

Bunzl PLC

79,609

800

 

^

Thomson Reuters PLC

45,410

787

 

 

Wolseley PLC

143,139

783

*

 

Cairn Energy PLC

29,406

762

 

 

Johnson Matthey PLC

48,423

729

 

 

Drax Group PLC

74,902

696

 

 

The Alliance Trust PLC

166,896

660

 

 

Foreign and Colonial

 

 

 

 

Investment Trust PLC

179,198

644

 

 

Lonmin PLC

34,403

642

 

 

ICAP PLC

123,110

613

 

 

Friends Provident PLC

529,571

607

 

 

Amec PLC

71,840

601

 

 

Tate & Lyle PLC

101,094

601

 

 

 

 

 

Market

 

 

 

 

Value

 

 

 

Shares

($000)

 

 

InterContinental Hotels

 

 

 

 

Group PLC

67,591

574

 

 

Home Retail Group

177,471

566

 

 

Schroders PLC

40,542

520

 

 

Antofagasta PLC

83,868

518

 

 

Whitbread PLC

35,611

516

 

 

Burberry Group PLC

107,037

476

 

 

Vedanta Resources PLC

33,195

460

 

 

Hays PLC

414,990

456

*

 

Invensys PLC

161,345

405

 

 

Segro PLC

89,196

403

 

 

Eurasian Natural

 

 

 

 

Resources Corp.

80,157

401

 

 

United Business Media Ltd.

61,474

400

 

 

ITV PLC

825,470

399

 

 

Scottish Mortgage

 

 

 

 

Investment Trust PLC

71,345

381

 

 

Rentokil Initial PLC

513,836

373

 

^

Provident Financial PLC

28,465

363

 

 

LogicaCMG PLC

315,787

352

 

 

Ladbrokes PLC

136,060

347

 

 

Aegis Group PLC

328,756

346

 

 

Daily Mail and General

 

 

 

 

Trust PLC

72,363

341

 

 

Mondi PLC

92,702

336

 

 

Tomkins PLC

171,473

315

 

 

GKN PLC

155,526

298

 

 

British Airways PLC

133,157

295

 

 

William Hill PLC

88,635

273

 

 

Thomas Cook Group PLC

78,605

213

 

 

Kazakhmys PLC

45,244

212

 

 

Carphone Warehouse PLC

64,537

140

 

 

Enterprise Inns PLC

82,903

131

 

 

Schroders PLC-Non

 

 

 

 

Voting Shares

10,041

107

*

 

PartyGaming PLC

7,396

14

*

 

Northern Rock PLC

2,812

 

 

 

 

385,247

Total Common Stocks

 

 

(Cost $3,854,474)

 

2,413,002

Temporary Cash Investment (3.8%)

 

 

2,3

Vanguard Market

 

 

 

 

Liquidity Fund, 2.217%

 

 

(Cost $93,909)

93,909,212

93,909

Total Investments (102.5%)

 

 

(Cost $3,948,383)

 

2,506,911

Other Assets and Liabilities (–2.5%)

 

 

Other Assets

 

67,260

Liabilities3

 

(128,540)

 

 

 

 

(61,280)

Net Assets (100%)

 

2,445,631

 

 

38

FTSE All-World ex-US Index Fund

 

 

At October 31, 2008, net assets consisted of:

 

 

Amount

 

($000)

Paid-in Capital

3,852,615

Undistributed Net Investment Income

70,234

Accumulated Net Realized Losses

(35,763)

Unrealized Appreciation (Depreciation)

 

Investment Securities

(1,441,472)

Foreign Currencies

17

Net Assets

2,445,631

 

 

Investor Shares—Net Assets

 

Applicable to 23,183,285 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

296,026

Net Asset Value Per Share—

 

Investor Shares

$12.77

 

 

Institutional Shares—Net Assets

 

Applicable to 6,997,355 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

448,220

Net Asset Value Per Share—

 

Institutional Shares

$64.06

 

 

ETF Shares—Net Assets

 

Applicable to 52,358,336 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

1,701,385

Net Asset Value Per Share—

 

ETF Shares

$32.50

 

 

See Note A in Notes to Financial Statements.

*

Non-income-producing security.

^

Part of security position is on loan to broker-dealers. The total value of securities on loan is $77,902,000.

1 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2008, the aggregate value of these securities was $12,265,000, representing 0.5% of net assets.

2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

3 Includes $82,654,000 of collateral received for securities on loan.

See accompanying Notes, which are an integral part of the Financial Statements.

ADR—American Depositary Receipt.

GDR—Global Depositary Receipt.

REIT—Real Estate Investment Trust.

 

 

39

FTSE All-World ex-US Index Fund

 

Statement of Operations

 

 

Year Ended

 

October 31, 2008

 

($000)

Investment Income

 

Income

 

Dividends1

77,803

Interest2

715

Security Lending

2,632

Total Income

81,150

Expenses

 

The Vanguard Group—Note B

 

Investment Advisory Services

92

Management and Administrative—Investor Shares

777

Management and Administrative—Institutional Shares

82

Management and Administrative—ETF Shares

1,836

Marketing and Distribution—Investor Shares

63

Marketing and Distribution—Institutional Shares

73

Marketing and Distribution—ETF Shares

384

Custodian Fees

1,226

Auditing Fees

29

Shareholders’ Reports—Investor Shares

15

Shareholders’ Reports—Institutional Shares

2

Shareholders’ Reports—ETF Shares

58

Trustees’ Fees and Expenses

3

Total Expenses

4,640

Expenses Paid Indirectly

(34)

Net Expenses

4,606

Net Investment Income

76,544

Realized Net Gain (Loss)

 

Investment Securities Sold

(36,519)

Foreign Currencies

(930)

Realized Net Gain (Loss)

(37,449)

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities

(1,570,536)

Foreign Currencies

(28)

Change in Unrealized Appreciation (Depreciation)

(1,570,564)

Net Increase (Decrease) in Net Assets Resulting from Operations

(1,531,469)

 

 

1 Dividends are net of foreign withholding taxes of $4,500,000.

2 Interest income from an affiliated company of the fund was $390,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

40

FTSE All-World ex-US Index Fund

 

Statement of Changes in Net Assets

 

 

Year

March 2,

 

Ended

20071 to

 

October 31,

October 31,

 

2008

2007

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

76,544

9,782

Realized Net Gain (Loss)

(37,449)

(1,754)

Change in Unrealized Appreciation (Depreciation)

(1,570,564)

129,109

Net Increase (Decrease) in Net Assets Resulting from Operations

(1,531,469)

137,137

Distributions

 

 

Net Investment Income

 

 

Investor Shares

(1,923)

Institutional Shares

(1,766)

ETF Shares

(11,212)

Realized Capital Gain

 

 

Investor Shares

Institutional Shares

ETF Shares

Total Distributions

(14,901)

Capital Share Transactions

 

 

Investor Shares

279,974

189,893

Institutional Shares

563,511

148,203

ETF Shares

1,709,924

963,359

Net Increase (Decrease) from Capital Share Transactions

2,553,409

1,301,455

Total Increase (Decrease)

1,007,039

1,438,592

Net Assets

 

 

Beginning of Period

1,438,592

End of Period2

2,445,631

1,438,592

 

 

1 Inception.

2 Net Assets—End of Period includes undistributed net investment income of $70,234,000 and $9,459,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

41

FTSE All-World ex-US Index Fund

 

Financial Highlights

 

Investor Shares

 

 

 

Year

March 8,

 

Ended

20071 to

 

Oct. 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

Net Asset Value, Beginning of Period

$24.91

$20.00

Investment Operations

 

 

Net Investment Income

.6372

.4102

Net Realized and Unrealized Gain (Loss) on Investments

(12.592)

4.500

Total from Investment Operations

(11.955)

4.910

Distributions

 

 

Dividends from Net Investment Income

(.185)

Distributions from Realized Capital Gains

Total Distributions

(.185)

Net Asset Value, End of Period

$12.77

$24.91

 

 

 

Total Return3

–48.32%

24.55%

 

 

 

Ratios/Supplemental Data

 

 

Net Assets, End of Period (Millions)

$296

$213

Ratio of Total Expenses to Average Net Assets

0.35%

0.40%4

Ratio of Net Investment Income to Average Net Assets

3.24%

2.61%4

Portfolio Turnover Rate5

7%

10%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Total returns do not reflect the 0.25% transaction fee on purchases through June 26, 2008; the 2% fee assessed on redemptions of shares held for less than two months; or the account service fee that may be applicable to certain accounts with balances below $10,000.

4 Annualized.

5 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

42

FTSE All-World ex-US Index Fund

 

Financial Highlights

 

Institutional Shares

 

 

 

Year

April 30,

 

Ended

20071 to

 

Oct. 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

Net Asset Value, Beginning of Period

$124.76

$107.33

Investment Operations

 

 

Net Investment Income

3.3232

1.1502

Net Realized and Unrealized Gain (Loss) on Investments

(62.979)

16.280

Total from Investment Operations

(59.656)

17.430

Distributions

 

 

Dividends from Net Investment Income

(1.044)

Distributions from Realized Capital Gains

Total Distributions

(1.044)

Net Asset Value, End of Period

$64.06

$124.76

 

 

 

Total Return3

–48.18%

16.24%

 

 

 

Ratios/Supplemental Data

 

 

Net Assets, End of Period (Millions)

$448

$157

Ratio of Total Expenses to Average Net Assets

0.10%

0.15%4

Ratio of Net Investment Income to Average Net Assets

3.49%

2.86%4

Portfolio Turnover Rate5

7%

10%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Total returns do not reflect the 0.25% transaction fee on purchases through June 26, 2008, or the 2% fee assessed on redemptions of shares held for less than two months.

4 Annualized.

5 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

43

FTSE All-World ex-US Index Fund

 

Financial Highlights

 

ETF Shares

 

 

 

Year

March 2,

 

Ended

20071 to

 

Oct. 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

Net Asset Value, Beginning of Period

$63.32

$49.80

Investment Operations

 

 

Net Investment Income

1.7052

1.0302

Net Realized and Unrealized Gain (Loss) on Investments

(32.015)

12.490

Total from Investment Operations

(30.310)

13.520

Distributions

 

 

Dividends from Net Investment Income

(.510)

Distributions from Realized Capital Gains

Total Distributions

(.510)

Net Asset Value, End of Period

$32.50

$63.32

 

 

 

Total Return

–48.23%

27.15%

 

 

 

Ratios/Supplemental Data

 

 

Net Assets, End of Period (Millions)

$1,701

$1,068

Ratio of Total Expenses to Average Net Assets

0.20%

0.25%3

Ratio of Net Investment Income to Average Net Assets

3.39%

2.76%3

Portfolio Turnover Rate4

7%

10%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Annualized.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

44

FTSE All-World ex-US Index Fund

 

Notes to Financial Statements

 

Vanguard FTSE All-World ex-US Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. The fund offers three classes of shares: Investor Shares, Institutional Shares, and ETF Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Institutional Shares are designed for investors who meet certain administrative and service criteria and invest a minimum of $5 million. ETF Shares are listed for trading on the NYSE Arca, Inc.; they can be purchased and sold through a broker.

 

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value.

 

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

 

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken on its federal income tax returns for all open tax years (tax years ended October 31, 2007–2008), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

 

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

 

5. Security Lending: The fund may lend its securities to qualified institutional borrowers to earn additional income. Security loans are required to be secured at all times by collateral at least equal to the market value of securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability for the return of the collateral, during the period the securities are on loan. Security lending income represents the income earned on investing cash collateral, less expenses associated with the loan.

 

45

FTSE All-World ex-US Index Fund

 

6. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on capital share transactions are credited to paid-in capital.

 

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

 

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At October 31, 2008, the fund had contributed capital of $241,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.24% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

 

C. The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended October 31, 2008, custodian fee offset arrangements reduced the fund’s expenses by $34,000.

 

D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

 

During the year ended October 31, 2008, the fund realized net foreign currency losses of $930,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized losses to undistributed net investment income. The fund’s realized losses for the year ended October 31, 2008, include taxes paid on realized capital gains on Indian securities of $1,000, which are treated as decreases to taxable income; accordingly, these amounts have been reclassified from accumulated net realized losses to undistributed net investment income.

 

Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. During the year ended October 31, 2008, the fund realized gains on the sale of passive foreign investment companies of $63,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Unrealized appreciation on the fund’s passive foreign investment company holdings at October 31, 2008, was $113,000.

 

46

FTSE All-World ex-US Index Fund

 

During the year ended October 31, 2008, the fund realized $2,249,000 of net capital losses resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such losses are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital.

 

For tax purposes, at October 31, 2008, the fund had $71,201,000 of ordinary income available for distribution. The fund had available realized losses of $31,350,000 to offset future net capital gains of $1,431,000 through October 31, 2015, and $29,919,000 through October 31, 2016.

 

At October 31, 2008, the cost of investment securities for tax purposes was $3,952,909,000. Net unrealized depreciation of investment securities for tax purposes was $1,445,998,000, consisting of unrealized gains of $17,563,000 on securities that had risen in value since their purchase and $1,463,561,000 in unrealized losses on securities that had fallen in value since their purchase.

 

E. During the year ended October 31, 2008, the fund purchased $2,799,807,000 of investment securities and sold $218,023,000 of investment securities, other than temporary cash investments.

 

F. Capital share transactions for each class of shares were:

 

 

 

 

Year Ended

Inception1 to

 

October 31, 2008

October 31, 2007

 

Amount

Shares

Amount

Shares

 

($000)

(000)

($000)

(000)

Investor Shares

 

 

 

 

Issued

379,549

20,129

206,612

9,294

Issued in Lieu of Cash Distributions

1,746

76

Redeemed2

(101,321)

(5,570)

(16,719)

(746)

Net Increase (Decrease)—Investor Shares

279,974

14,635

189,893

8,548

Institutional Shares

 

 

 

 

Issued

617,923

6,448

148,203

1,261

Issued in Lieu of Cash Distributions

934

8

Redeemed2

(55,346)

(720)

Net Increase (Decrease)—Institutional Shares

563,511

5,736

148,203

1,261

ETF Shares

 

 

 

 

Issued

1,761,621

37,286

963,359

16,872

Issued in Lieu of Cash Distributions

Redeemed2

(51,697)

(1,800)

Net Increase (Decrease)—ETF Shares

1,709,924

35,486

963,359

16,872

 

G. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

 

1 Inception was March 8, 2007, for Investor Shares, April 30, 2007, for Institutional Shares, and March 2, 2007, for ETF Shares.

2 Net of redemption fees of $164,000 and $30,000 (fund totals).

 

47

FTSE All-World ex-US Index Fund

 

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

The following table summarizes the fund’s investments as of October 31, 2008, based on the inputs used to value them:

 

 

 

Investments

 

in Securities

Valuation Inputs

($000)

Level 1—Quoted prices

389,299

Level 2—Other significant observable inputs

2,117,612

Level 3—Significant unobservable inputs

Total

2,506,911

 

 

 

48

Report of Independent Registered Public Accounting Firm

 

To the Trustees of Vanguard International Equity Index Funds and the Shareholders of Vanguard FTSE All-World ex-US Index Fund:

 

In our opinion, the accompanying statement of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard FTSE All-World ex-US Index Fund (the “Fund”) at October 31, 2008, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended and for the period March 2, 2007 (commencement of operations) through October 31, 2007, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and by agreement to the underlying ownership records for Vanguard Market Liquidity Fund, provide a reasonable basis for our opinion.

 

 

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

 

December 19, 2008

 

 

 

Special 2008 tax information (unaudited) for Vanguard FTSE All-World ex-US Index Fund

 

This information for the fiscal year ended October 31, 2008, is included pursuant to provisions of the Internal Revenue Code.

 

The fund distributed $12,997,000 of qualified dividend income to shareholders during the fiscal year.

 

The fund will pass through to shareholders foreign source income of $79,307,000 and foreign taxes paid of $4,282,000. The pass-through of foreign taxes paid will affect only shareholders on the dividend record date in December 2008. Shareholders will receive more detailed information along with their Form 1099-DIV in January 2009.

 

49

Your Fund’s After-Tax Returns

 

This table presents returns for your fund both before and after taxes. The after-t ax returns are shown in two ways: (1) assuming that an investor owned the fund during the entire period and paid taxes on the fund’s distributions, and (2) assuming that an investor paid taxes on the fund’s distributions and sold all shares at the end of each period.

 

Calculations are based on the highest individual federal income tax and capital gains tax rates in effect at the times of the distributions and the hypothetical sales. State and local taxes were not considered. After-tax returns reflect any qualified dividend income, using actual prior-year figures and estimates for 2008. (In the example, returns after the sale of fund shares may be higher than those assuming no sale. This occurs when the sale would have produced a capital loss. The calculation assumes that the investor received a tax deduction for the loss.)

 

The table shows returns for Investor Shares only; returns for other share classes will differ. Please note that your actual after-t ax returns will depend on your tax situation and may differ from those shown. Also note that if you own the fund in a tax-deferred account, such as an individual retirement account or a 401(k) plan, this information does not apply to you. Such accounts are not subject to current taxes.

 

Finally, keep in mind that a fund’s performance—whether before or after taxes—does not guarantee future results.

 

 

Average Annual Total Returns: FTSE All-World ex-US Index Fund Investor Shares1

Periods Ended October 31, 2008

 

 

 

One

Since

 

Year

Inception2

Returns Before Taxes

–48.32%

–23.44%

Returns After Taxes on Distributions

–48.37

–23.49

Returns After Taxes on Distributions and Sale of Fund Shares

–31.22

–19.55

 

 

1 Total returns do not reflect the 2% fee assessed on redemptions of shares held for less than two months, or the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Inception date for Investor Shares is March 8, 2007.

 

 

50

About Your Fund’s Expenses

 

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

 

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

 

The accompanying table illustrates your fund’s costs in two ways:

 

• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading “Expenses Paid During Period.”

 

• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund’s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

 

 

Six Months Ended October 31, 2008

 

 

 

 

Beginning

Ending

Expenses

 

Account Value

Account Value

Paid During

FTSE All-World ex-US Index Fund

4/30/2008

10/31/2008

Period1

Based on Actual Fund Return

 

 

 

Investor Shares

$1,000.00

$572.90

$1.39

Institutional Shares

1,000.00

573.50

0.40

ETF Shares

1,000.00

573.29

0.79

Based on Hypothetical 5% Yearly Return

 

 

 

Investor Shares

$1,000.00

$1,023.44

$1.79

Institutional Shares

1,000.00

1,024.70

0.51

ETF Shares

1,000.00

1,024.20

1.02

 

 

1 The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are 0.35% for Investor Shares, 0.10% for Institutional Shares, and 0.20% for ETF Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.

 

51

Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include the 2% fee on redemptions of shares held for less than two months, nor do they include the account service fee described in the prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”

 

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

 

You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.

 

 

52

Glossary

 

Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any holdings in short-term reserves are excluded.

 

Expense Ratio. The percentage of a fund’s average net assets used to pay its annual administrative and advisory expenses. These expenses directly reduce returns to investors.

 

Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.

 

Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.

 

Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur higher transaction costs and may be more likely to distribute capital gains (which may be taxable to investors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.

 

 

53

 

 

 

 

 

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The People Who Govern Your Fund

 

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.

 

A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals.

 

Our independent board members bring distinguished backgrounds in business, academia, and public service to their task of working with Vanguard officers to establish the policies and oversee the activities of the funds. Among board members’ responsibilities are selecting investment advisors for the funds; monitoring fund operations, performance, and costs; reviewing contracts; nominating and selecting new trustees/directors; and electing Vanguard officers.

 

Each trustee serves a fund until its termination; or until the trustee’s retirement, resignation, or death; or otherwise as specified in the fund’s organizational documents. Any trustee may be removed at a shareholders’ meeting by a vote representing two-thirds of the net asset value of all shares of the fund together with shares of other Vanguard funds organized within the same trust. The table on these two pages shows information for each trustee and executive officer of the fund. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482.

 

Chairman of the Board and Trustee

 

 

John J. Brennan1

 

Born 1954

Principal Occupation(s) During the Past Five Years: Chairman of the Board and Director/

Trustee Since May 1987;

Trustee of The Vanguard Group, Inc., and of each of the investment companies served

Chairman of the Board

by The Vanguard Group; Chief Executive Officer and President of The Vanguard Group

156 Vanguard Funds Overseen

and of each of the investment companies served by The Vanguard Group (1996–2008).

 

 

Independent Trustees

 

 

 

Charles D. Ellis

 

Born 1937

Principal Occupation(s) During the Past Five Years: Applecore Partners (pro bono ventures

Trustee Since January 2001

in education); Senior Advisor to Greenwich Associates (international business strategy

156 Vanguard Funds Overseen

consulting); Successor Trustee of Yale University; Overseer of the Stern School of Business

 

at New York University; Trustee of the Whitehead Institute for Biomedical Research.

 

 

Emerson U. Fullwood

 

Born 1948

Principal Occupation(s) During the Past Five Years: Executive Chief Staff and Marketing

Trustee Since January 2008

Officer for North America since 2004 and Corporate Vice President of Xerox Corporation

156 Vanguard Funds Overseen

(photocopiers and printers); Director of SPX Corporation (multi-industry manufacturing),

 

of the United Way of Rochester, and of the Boy Scouts of America.

 

 

Rajiv L. Gupta

 

Born 1945

Principal Occupation(s) During the Past Five Years: Chairman, President, and

Trustee Since December 20012

Chief Executive Officer of Rohm and Haas Co. (chemicals); Board Member of

156 Vanguard Funds Overseen

the American Chemistry Council; Director of Tyco International, Ltd. (diversified

 

manufacturing and services), since 2005.

 

 

Amy Gutmann

 

Born 1949

Principal Occupation(s) During the Past Five Years: President of the University of

Trustee Since June 2006

Pennsylvania since 2004; Professor in the School of Arts and Sciences, Annenberg School

156 Vanguard Funds Overseen

for Communication, and Graduate School of Education of the University of Pennsylvania

 

since 2004; Provost (2001–2004) and Laurance S. Rockefeller Professor of Politics and

 

the University Center for Human Values (1990–2004), Princeton University; Director of

 

Carnegie Corporation of New York since 2005 and of Schuylkill River Development

 

Corporation and Greater Philadelphia Chamber of Commerce since 2004; Trustee of

 

the National Constitution Center since 2007.

 

JoAnn Heffernan Heisen

 

Born 1950

Principal Occupation(s) During the Past Five Years: Corporate Vice President and

Trustee Since July 1998

Chief Global Diversity Officer since 2006, Vice President and Chief Information

156 Vanguard Funds Overseen

Officer (1997–2005), and Member of the Executive Committee of Johnson &

 

Johnson (pharmaceuticals/consumer products); Director of the University Medical

 

Center at Princeton and Women’s Research and Education Institute.

 

 

André F. Perold

 

Born 1952

Principal Occupation(s) During the Past Five Years: George Gund Professor of Finance

Trustee Since December 2004

and Banking, Harvard Business School; Senior Associate Dean and Director of Faculty

156 Vanguard Funds Overseen

Recruiting, Harvard Business School; Director and Chairman of UNX, Inc. (equities

 

trading firm); Chair of the Investment Committee of HighVista Strategies LLC (private

 

investment firm) since 2005.

 

 

Alfred M. Rankin, Jr.

 

Born 1941

Principal Occupation(s) During the Past Five Years: Chairman, President, Chief Executive

Trustee Since January 1993

Officer, and Director of NACCO Industries, Inc. (forklift trucks/housewares/lignite); Director

156 Vanguard Funds Overseen

of Goodrich Corporation (industrial products/aircraft systems and services).

 

 

J. Lawrence Wilson

 

Born 1936

Principal Occupation(s) During the Past Five Years: Retired Chairman and Chief Executive

Trustee Since April 1985

Officer of Rohm and Haas Co. (chemicals); Director of Cummins Inc. (diesel engines) and

156 Vanguard Funds Overseen

AmerisourceBergen Corp. (pharmaceutical distribution); Trustee of Vanderbilt University

 

and of Culver Educational Foundation.

 

 

Executive Officers1

 

 

 

Thomas J. Higgins

 

Born 1957

Principal Occupation(s) During the Past Five Years: Principal of The Vanguard Group, Inc.;

Chief Financial Officer

Treasurer of each of the investment companies served by The Vanguard Group; Chief

Since September 2008

Financial Officer of each of the investment companies served by The Vanguard

Treasurer Since July 1998

Group since 2008.

156 Vanguard Funds Overseen

 

 

 

F. William McNabb III

 

Born 1957

Principal Occupation(s) During the Past Five Years: Chief Executive Officer, Director,

Chief Executive Officer

and President of The Vanguard Group, Inc., since 2008; Chief Executive Officer and

Since August 31, 2008

President of each of the investment companies served by The Vanguard Group since

President Since March 2008

2008; Director of Vanguard Marketing Corporation; Managing Director of The Vanguard

156 Vanguard Funds Overseen

Group (1995–2008).

 

 

Heidi Stam

 

Born 1956

Principal Occupation(s) During the Past Five Years: Managing Director of The Vanguard

Secretary Since July 2005

Group, Inc., since 2006; General Counsel of The Vanguard Group since 2005; Secretary of

156 Vanguard Funds Overseen

The Vanguard Group and of each of the investment companies served by The Vanguard

 

Group since 2005; Director and Senior Vice President of Vanguard Marketing Corporation

 

since 2005; Principal of The Vanguard Group (1997–2006).

 

Vanguard Senior Management Team

 

 

 

 

 

 

 

 

R. Gregory Barton

Kathleen C. Gubanich

Michael S. Miller

Ralph K. Packard

George U. Sauter

Mortimer J. Buckley

Paul A. Heller

James M. Norris

Glenn W. Reed

 

 

Founder

 

John C. Bogle

Chairman and Chief Executive Officer, 1974–1996

 

1

These individuals are “interested persons” as defined in the Investment Company Act of 1940.

2

December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.

More information about the trustees is in the Statement of Additional Information, available from The Vanguard Group.

 

 


 

P.O. Box 2600

 

Valley Forge, PA 19482-2600

 

Connect with Vanguard® > www.vanguard.com

 

Fund Information > 800-662-7447

All comparative mutual fund data are from Lipper Inc.

 

or Morningstar, Inc., unless otherwise noted.

Direct Investor Account Services > 800-662-2739

 

 

 

Institutional Investor Services > 800-523-1036

You can obtain a free copy of Vanguard’s proxy voting

 

guidelines by visiting our website, www.vanguard.com,

Text Telephone for People

and searching for “proxy voting guidelines,” or by

With Hearing Impairment > 800-952-3335

calling Vanguard at 800-662-2739. The guidelines are

 

also available from the SEC’s website, www.sec.gov.

 

In addition, you may obtain a free report on how your

 

fund voted the proxies for securities it owned during

This material may be used in conjunction

the 12 months ended June 30. To get the report, visit

with the offering of shares of any Vanguard

either www.vanguard.com or www.sec.gov.

fund only if preceded or accompanied by

 

the fund’s current prospectus.

 

 

You can review and copy information about your fund

 

at the SEC’s Public Reference Room in Washington, D.C.

“FTSE®” is a trademark jointly owned by the London

To find out more about this public service, call the SEC

Stock Exchange plc and The Financial Times Limited

at 202-551-8090. Information about your fund is also

and is used by FTSE International Limited under license.

available on the SEC’s website, and you can receive

“All-World” is a trademark of FTSE International Limited.

copies of this information, for a fee, by sending a

The FTSE All-World ex US Index is calculated by FTSE

request in either of two ways: via e-mail addressed to

International Limited. FTSE International Limited does not

publicinfo@sec.gov or via regular mail addressed to the

sponsor, endorse, or promote the fund; is not in any way

Public Reference Section, Securities and Exchange

connected to it; and does not accept any liability in

Commission, Washington, DC 20549-0102.

relation to its issue, operation, and trading.

 

 

 

 

 

The funds or securities referred to herein are not

 

sponsored, endorsed, or promoted by MSCI, and MSCI

 

bears no liability with respect to any such funds or

 

securities. For any such funds or securities, the

 

prospectus or the Statement of Additional Information

 

contains a more detailed description of the limited

 

relationship MSCI has with The Vanguard Group and

 

any related funds.

 

 

© 2008 The Vanguard Group, Inc.

Russell is a trademark of The Frank Russell Company.

All rights reserved.

 

Vanguard Marketing Corporation, Distributor.

 

 

 

Q7700 122008

 

 

 


 

 

>

For the fiscal year ended October 31, 2008, returns for the Vanguard International Stock Index Funds were sharply lower across the board. A rising U.S. dollar against most currencies further lowered returns for U.S. investors.

>

The funds tracked their benchmarks and delivered returns that surpassed the average returns of their mutual fund peers.

>

A global credit crisis and fears of a global economic slowdown drove down stock values worldwide.

 

 

Contents

 

 

 

Your Fund’s Total Returns

1

President’s Letter

4

European Stock Index Fund

11

Pacific Stock Index Fund

36

Emerging Markets Stock Index Fund

61

Developed Markets Index Fund

92

Institutional Developed Markets Index Fund

101

Your Fund’s After-Tax Returns

112

About Your Fund’s Expenses

114

Glossary

117

 

 


 

European Stock Index Fund

Pacific Stock Index Fund

Emerging Markets Stock Index Fund

Developed Markets Index Fund

Institutional Developed Markets Index Fund

 

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

 

Your Fund’s Total Returns

 

 

Fiscal Year Ended October 31, 2008

 

 

 

Ticker

Total

 

Symbol

Returns

Vanguard European Stock Index Fund

 

 

Investor Shares

VEURX

–47.80%

Admiral™ Shares1

VEUSX

–47.74

Signal® Shares2

VESSX

–47.74

Institutional Shares3

VESIX

–47.72

ETF Shares4

VGK

 

Market Price

 

–47.28

Net Asset Value

 

–47.73

MSCI Europe Index

 

–48.02

Average European Region Fund5

 

–49.48

 

 

 

Vanguard Pacific Stock Index Fund

 

 

Investor Shares

VPACX

–42.71%

Admiral Shares1

VPADX

–42.62

Signal Shares2

VPASX

–42.61

Institutional Shares3

VPKIX

–42.62

ETF Shares4

VPL

 

Market Price

 

–42.40

Net Asset Value

 

–42.61

MSCI Pacific Index

 

–43.49

Average Japan/Pacific Region Fund5

 

–46.22

 

 

1 A lower-cost class of shares available to many longtime shareholders and to those with significant investments in the fund.

2 Signal Shares also carry lower costs and are available to certain institutional shareholders who meet specific administrative, service, and account-size criteria.

3 This class of shares carries low expenses and is available for a minimum initial investment of $5 million.

4 Vanguard ETF™ Shares are traded on the NYSE Arca exchange and are available only through brokers. The table shows the ETF returns based on both the NYSE Arca market price and the net asset value for a share. U.S. Pat. No. 6,879,964 B2; 7,337,138.

5 Derived from data provided by Lipper Inc.

 

 

1

Your Fund’s Total Returns

 

 

Fiscal Year Ended October 31, 2008

 

 

 

Ticker

Total

 

Symbol

Returns

Vanguard Emerging Markets Stock Index Fund

 

 

Investor Shares

VEIEX

–56.66%

Admiral Shares1

VEMAX

–56.63

Signal Shares2

VERSX

–56.64

Institutional Shares3

VEMIX

–56.61

ETF Shares4

VWO

 

Market Price

 

–56.74

Net Asset Value

 

–56.62

MSCI Emerging Markets Index

 

–56.35

Average Emerging Markets Fund5

 

–57.30

 

 

 

Vanguard Developed Markets Index Fund

VDMIX

–46.24%

MSCI EAFE Index

 

–46.62

Average International Fund5

 

–47.97

 

 

 

Vanguard Institutional Developed Markets Index Fund

VIDMX

–46.12%

MSCI EAFE Index

 

–46.62

Average International Fund5

 

–47.97

 

 

1 A lower-cost class of shares available to many longtime shareholders and to those with significant investments in the fund.

2 Signal Shares also carry lower costs and are available to certain institutional shareholders who meet specific administrative, service, and account-size criteria.

3 This class of shares carries low expenses and is available for a minimum initial investment of $5 million.

4 Vanguard ETF Shares are traded on the NYSE Arca exchange and are available only through brokers. The table shows the ETF returns based on both the NYSE Arca market price and the net asset value for a share. U.S. Pat. No. 6,879,964 B2; 7,337,138.

5 Derived from data provided by Lipper Inc.

 

 

2

Your Fund’s Performance at a Glance

 

 

October 31, 2007–October 31, 2008

 

 

 

 

 

 

 

Distributions Per Share

 

Starting

Ending

Income

Capital

 

Share Price

Share Price

Dividends

Gains

European Stock Index Fund

 

 

 

 

Investor Shares

$43.43

$21.99

$1.215

$0.000

Admiral Shares

102.09

51.71

2.939

0.000

Signal Shares

39.50

20.01

1.129

0.000

Institutional Shares

43.51

22.04

1.261

0.000

ETF Shares

81.66

41.37

2.356

0.000

Pacific Stock Index Fund

 

 

 

 

Investor Shares

$14.19

$7.94

$0.303

$0.000

Admiral Shares

92.94

52.04

2.060

0.000

Signal Shares

32.28

18.08

0.709

0.000

Institutional Shares

14.22

7.96

0.318

0.000

ETF Shares

75.17

42.10

1.669

0.000

Emerging Markets Stock Index Fund

 

 

 

 

Investor Shares

$36.78

$15.66

$0.587

$0.000

Admiral Shares

48.47

20.63

0.820

0.000

Signal Shares

46.61

19.85

0.760

0.000

Institutional Shares

36.90

15.71

0.632

0.000

ETF Shares1

58.31

24.83

0.985

0.000

Developed Markets Index Fund

$14.91

$7.79

$0.387

$0.005

Institutional Developed Markets Index Fund

$14.79

$7.74

$0.396

$0.000

 

 

1 Adjusted to reflect a 2-for-1 share split as of the close of business on June 13, 2008.

 

 

3


 

President’s Letter

 

Dear Shareholder,

After several years of generous returns, international markets dropped sharply during the past 12 months as a global credit crisis caused investors to pull back from riskier investments such as stocks. The bear market spared no country, but emerging markets suffered the most, as Vanguard Emerging Markets Stock Index Fund returned –56.66% for Investor Shares.

Losses in Europe and the Pacific region were a bit less severe, but still deep, as Vanguard European Stock Index Fund lost –47.80% and Vanguard Pacific Stock Index Fund retreated –42.71% (Investor Shares). Vanguard Developed Markets Index Fund and its institutional counterpart, which invest in the European and Pacific funds in market-weighted proportions, posted similar results.

These results for the Vanguard International Stock Index Funds (the Emerging Markets Stock Index Fund excepted) slightly exceeded the returns of their respective benchmark indexes because of short-term discrepancies that arose from fair-value pricing, which is described more fully later in this letter. The funds’ performances were also slightly better than the average returns of their peer groups.

Please note that the ETF Shares of the Emerging Markets Stock Index Fund underwent a 2-for-1 split in June. If you own one or more of the funds in a taxable account, you may wish to review the details of the funds’ after-tax returns on page 112.

 

 

4

Stock prices fell sharply in global upheaval

Global stock markets started the 12-month period near all-time highs but then declined sharply, laid low by the financial crisis that originated in the fixed income markets. The descent traced a series of jagged ups and downs. During the week ended October 10, for example, the U.S. stock market returned about –18%. When Wall Street opened the following Monday, stocks surged, returning more than 10% over the next six-and-a-half hours.

For the full 12 months, the broad U.S. stock market returned –36.43%; international stocks returned –48.27%. The pain was especially acute in emerging markets—among the strongest performers in recent years—as investors became increasingly risk-averse.

 

Bond market averages masked disparate returns

The broad U.S. taxable bond market registered an unremarkable return of 0.30% for the 12 months, but by its own typically sedate standards, the dislocations were extreme. The strong performance of U.S. Treasury and government securities was offset by double-digit declines in the corporate bond market. These dynamics led to unusually large differences between the yields of Treasuries and their corresponding private sector securities—both a reflection and a cause of the credit market’s distress. Despite their generally high creditworthiness, municipal bonds also fell in price, with the broad tax-exempt market registering a 12-month return of –3.30%.

 

 

Market Barometer

 

 

Average Annual Total Returns

 

Periods Ended October 31, 2008

 

One Year

Three Years

Five Years

Stocks

 

 

 

MSCI All Country World Index ex USA (International)

–48.27%

–3.93%

5.05%

Russell 1000 Index (Large-caps)

–36.80

–5.51

0.37

Russell 2000 Index (Small-caps)

–34.16

–4.79

1.57

Dow Jones Wilshire 5000 Index (Entire market)

–36.43

–5.10

0.81

 

 

 

 

Bonds

 

 

 

Lehman U.S. Aggregate Bond Index (Broad taxable market)

0.30%

3.60%

3.48%

Lehman Municipal Bond Index

–3.30

1.71

2.73

Citigroup 3-Month Treasury Bill Index

2.31

3.93

3.10

 

 

 

 

CPI

 

 

 

Consumer Price Index

3.66%

2.83%

3.20%

 

 

5

 

Expense Ratios

 

 

 

Your Fund Compared With Its Peer Group

 

 

 

 

Fund

Acquired Fund

Peer-Group

 

Expense

Fees and

Expense

 

Ratio1

Expenses2

Ratio3

European Stock Index Fund

 

 

 

Investor Shares

0.22%

1.35%

Admiral Shares

0.12

1.35

Signal Shares

0.12

1.35

Institutional Shares

0.09

1.35

ETF Shares

0.12

1.35

Pacific Stock Index Fund

 

 

 

Investor Shares

0.22%

1.58%

Admiral Shares

0.12

1.58

Signal Shares

0.12

1.58

Institutional Shares

0.09

1.58

ETF Shares

0.12

1.58

Emerging Markets Stock Index Fund

 

 

 

Investor Shares

0.37%

1.80%

Admiral Shares

0.25

1.80

Signal Shares

0.25

1.80

Institutional Shares

0.20

1.80

ETF Shares

0.25

1.80

Developed Markets Index Fund

0.22%

1.48%

Institutional Developed Markets Index Fund

0.09%

1.48%

 

 

1 The fund expense ratios shown are from the prospectus dated August 29, 2008. For the fiscal year ended October 31, 2008, the European Stock Index Fund’s expense ratios were 0.22% for Investor Shares, 0.12% for Admiral Shares, 0.12% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares. The Pacific Stock Index Fund’s expense ratios were 0.22% for Investor Shares, 0.12% for Admiral Shares, 0.12% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares. The Emerging Markets Stock Index Fund’s expense ratios were 0.32% for Investor Shares, 0.20% for Admiral Shares, 0.20% for Signal Shares, 0.15% for Institutional Shares, and 0.20% for ETF Shares.

2 This figure—drawn from the prospectus dated October 14, 2008, for the Developed Markets Index Fund and February 27, 2008, for the Institutional Developed Markets Index Fund—represents a weighted average of the annualized expense ratios and any transaction fees charged by the underlying mutual funds (the “acquired” funds) in which the funds invest. The Developed Markets Index Fund and Institutional Developed Markets Index Fund do not charge any expenses or fees of their own. For the fiscal year ended October 31, 2008, the acquired fund fees and expenses were 0.22% for the Developed Markets Index Fund and 0.09% for the Institutional Developed Markets Index Fund.

3 Peer groups are: for the European Stock Index Fund, the Average European Region Fund; for the Pacific Stock Index Fund, the Average Japan/Pacific Region Fund; for the Emerging Markets Stock Index Fund, the Average Emerging Markets Fund; and for the two other funds, the Average International Fund. The peer-group expense ratios are derived from data provided by Lipper Inc. and capture information through year-end 2007.

 

6

The U.S. Federal Reserve Board responded to the turmoil with new lending programs and a dramatic easing of monetary policy. Over the full 12 months, the Fed reduced its target for the federal funds rate from 4.50% to 1.00%.

Investors turned bearish in every corner of the globe

This report includes three distinct regional index funds—European, Pacific, and Emerging Markets. It also includes two funds-of-funds, the Developed Markets Index Fund and its institutional counterpart (available at a minimum initial investment of $5 million). Both invest in the European and Pacific funds in market-weighted proportions.

Vanguard Total International Stock Index Fund, which previously was included in this report and invests in European, Pacific, and emerging markets, now issues its own report.

The European Stock Index Fund’s Investor Shares lost –47.80% for the fiscal period. Each of the region’s three largest markets, the United Kingdom, France, and Germany, which together represent more than half of the index, posted similar losses. Switz-erland (–32%) was the only market that didn’t fall by at least a third.

Owing to credit woes, the worst damage came from financials (–60%), the largest European sector, which represented on average about a quarter of the region’s market value. As in the United States, banks suffered from exposure to problematic debt securities linked to falling U.S. home values.

Most other industries fell between –33% (consumer staples) and –56% (industrials). The sector that suffered the least was health care (–19%). The decline of the euro (–10%) and British pound (–25%)

 

 

Total Returns

 

 

 

Ten Years Ended October 31, 20081

 

 

 

 

 

Average Annual Return

 

 

 

Average

 

Vanguard

Target

Competing

Index Fund

Fund

Index

Fund2

European Stock Investor Shares

1.69%

1.53%

1.94%

Pacific Stock Investor Shares

2.16

2.05

1.62

Emerging Markets Stock Investor Shares

9.24

9.39

9.08

Developed Markets

–0.97

–1.12

–1.92

Institutional Developed Markets

–0.94

–1.12

–2.03

 

The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost.

 

1 Since inception for the Developed Markets Index Fund (May 8, 2000) and the Institutional Developed Markets Index Fund (June 1, 2000).

2 Derived from data provided by Lipper Inc. against the U.S. dollar in currency markets during the fiscal year amplified losses for U.S.-based investors.

 

7

Pacific region losses were also severe

The Pacific Stock Index Fund’s Investor Shares returned –42.71% for the period. Japan, by far the largest market in the region, retreated –37% in U.S. dollar terms, a less severe loss than that experienced by Japanese investors given that the Japanese yen rose nearly 17% against the dollar during the period.

The other major Pacific markets—Australia, Hong Kong, and Singapore—lost more than half their value. As with other markets around the world, financial stocks (–50%), representing the region’s largest sector, were the leading cause of the losses.

Other sectors in the region faced similar headwinds during the global slowdown. In terms of negative impact on the fund, industrials (–47%) and materials (–54%) were most prominent. Consumer staples (–27%), typically less volatile during bear markets, and health care (–21%) were least affected by the downdraft.

Emerging markets suffered the most during the period

True to their more volatile reputation, emerging markets lost the most among international stocks during the period after stellar gains in recent years. The Emerging Markets Stock Index Fund’s Investor Shares fell –56.66%, with South Korea (–60%) and China (–68%) pulling the fund down the most. But no country was spared outsized losses, including Brazil (–54%), Taiwan (–49%), India (–62%), and Russia (–61%).

A quarter of the fund’s loss came from troubled financials, as commercial banks, brokerages, and other financial firms grappled with the unprecedented global credit squeeze. The energy sector (–57%), including coal companies and those active in oil and gas exploration and refining in Brazil, China, and Russia, was hit by rapidly falling energy prices as commodity markets anticipated slowing energy demand worldwide.

The Developed Markets Index Fund and the Institutional Developed Markets Index Fund are funds-of-funds that hold market-based weightings in the European and Pacific markets. Thus, their results were in line with proportional returns from those markets, with the two funds losing –46.24% and –46.12%, respectively.

The funds’ long-term performance is in line with the markets’

As the table on page 7 shows, the Vanguard International Stock Index Funds have met their objective of tracking their respective benchmarks over the past decade, with differences between fund and index returns of no more than 0.20 percentage point. And except for the European Stock Index Fund, their returns have also surpassed the average annual returns of their respective peer groups since inception or for the ten years ended October 31, 2008.

 

8

As noted earlier, the returns of the funds (except for the Emerging Markets Stock Index Fund) were slightly better than those of their target indexes for the past 12 months and, indeed, for the longer period shown on page 7. These differences were partly the result of fair-value pricing, which allows the funds to calculate their net asset values based on real-time developments not reflected in closing prices set in overseas markets that operate in different time zones. When fair-value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its index. This discrepancy corrects itself when market prices reflect fair value, usually the next day.

An index fund’s performance may also differ slightly from the return of its target benchmark because the fund may hold a slightly different roster of securities than those listed in the benchmark. Of course, the most consistent performance divergence arises from the operating costs incurred by an index fund—costs not present in the return from a benchmark.

Vanguard’s Quantitative Equity Group has managed index funds for more than three decades. Its disciplined execution of the funds’ indexing mandates, combined with the funds’ extremely low costs, can help you execute a long-term strategy of seeking to capture nearly all of the returns from international markets.

 

International investing still offers valuable diversification

After enjoying several years of strong returns with few bumps along the way, investors in international stocks were harshly reminded in the past year that a bear market can come at any time—and once in a while it can come with unusual severity. Such was the case with the credit crisis of 2008, with repercussions that unsettled even the most seasoned investors.

Nevertheless, the dramatic increase of international commerce in recent years, particularly in less developed nations, continues to offer long-term growth possibilities for patient investors.

That is why it is important to have a well-thought-out investment strategy based on a diversified mix of stock, bond, and money market mutual funds that fits your goals, time horizon, and risk tolerance. For those who can tolerate the extra volatility that sometimes comes with overseas investing, the International Stock Index Funds remain a cost-effective way to add an extra element of diversification to your portfolio and thus help you maintain a durable long-term investment plan.

Thank you for your confidence in Vanguard.

Sincerely,

 


 

F. William McNabb III

President and Chief Executive Officer

November 17, 2008

 

 

9

 

Vanguard European ETF

 

 

 

 

Premium/Discount: March 4, 20051–October 31, 2008

 

 

 

 

 

 

 

 

 

Market Price Above or

Market Price Below

 

Equal to Net Asset Value

 

Net Asset Value

 

Number

Percentage

Number

Percentage

Basis Point Differential2

of Days

of Total Days

of Days

of Total Days

0–24.9

251

27.14%

80

8.65%

25–49.9

273

29.51

11

1.19

50–74.9

160

17.30

5

0.54

75–100.0

85

9.19

1

0.11

>100.0

56

6.05

3

0.32

Total

825

89.19%

100

10.81%

 

 

Vanguard Pacific ETF

 

 

 

 

Premium/Discount: March 4, 20051–October 31, 2008

 

 

 

 

 

 

 

 

 

Market Price Above or

Market Price Below

 

Equal to Net Asset Value

 

Net Asset Value

 

Number

Percentage

Number

Percentage

Basis Point Differential2

of Days

of Total Days

of Days

of Total Days

0–24.9

250

27.02%

127

13.73%

25–49.9

217

23.46

35

3.78

50–74.9

140

15.14

2

0.22

75–100.0

76

8.22

6

0.65

>100.0

69

7.46

3

0.32

Total

752

81.30%

173

18.70%

 

 

Vanguard Emerging Markets ETF

 

 

 

 

Premium/Discount: March 4, 20051–October 31, 2008

 

 

 

 

 

 

 

 

 

Market Price Above or

Market Price Below

 

Equal to Net Asset Value

 

Net Asset Value

 

Number

Percentage

Number

Percentage

Basis Point Differential2

of Days

of Total Days

of Days

of Total Days

0–24.9

160

17.30%

97

10.48%

25–49.9

189

20.43

48

5.19

50–74.9

172

18.59

28

3.03

75–100.0

102

11.03

21

2.27

>100.0

80

8.65

28

3.03

Total

703

76.00%

222

24.00%

 

 

1 Inception.

2 One basis point equals 1/100 of a percentage point.

 

 

10

European Stock Index Fund

 

Fund Profile

As of October 31, 2008

 

 

Portfolio Characteristics

 

 

 

 

Target

Broad

 

Fund

Index1

Index2

Number of Stocks

530

513

1,898

Turnover Rate

15%

Expense Ratio

 

 

 

(10/31/2007)3

 

Investor Shares

0.22%

 

 

Admiral Shares

0.12%

 

 

Signal Shares

0.12%

 

 

Institutional Shares

0.09%

 

 

ETF Shares

0.12%

 

 

Short-Term Reserves

0.2%

 

 

Sector Diversification (% of equity exposure)

 

 

Target

Broad

 

Fund

Index1

Index2

Consumer Discretionary

8.7%

8.5%

9.0%

Consumer Staples

11.7

11.8

9.9

Energy

12.2

12.2

12.0

Financials

22.3

22.4

21.4

Health Care

11.7

11.7

9.7

Industrials

8.6

8.6

10.0

Information Technology

2.9

2.9

9.1

Materials

7.2

7.2

7.4

Telecommunication

 

 

 

Services

7.2

7.2

6.0

Utilities

7.5

7.5

5.5

 

 

Volatility Measures4

 

 

Fund Versus

Fund Versus

 

Target Index1

Broad Index2

R-Squared

0.99

0.95

Beta

0.98

0.93

 

 

Ten Largest Holdings5 (% of total net assets)

 

 

 

Royal Dutch Shell PLC

integrated oil

 

 

and gas

3.3%

BP PLC

integrated oil

 

 

and gas

2.9

Nestle SA (Registered)

packaged foods

 

 

and meats

2.9

HSBC Holdings PLC

diversified banks

2.7

Novartis AG (Registered)

pharmaceuticals

2.3

Total SA

integrated oil

 

 

and gas

2.2

Roche Holdings AG

pharmaceuticals

2.0

GlaxoSmithKline PLC

pharmaceuticals

2.0

Vodafone Group PLC

wireless

 

 

telecommunication

 

 

services

1.9

Volkswagen AG

automobile

 

 

manufacturers

1.9

Top Ten

 

24.1%

 

 

Market Diversification (% of equity exposure)

 

 

Target

 

Fund

Index1

United Kingdom

32.3%

32.7%

France

15.4

15.9

Germany

13.0

12.9

Switzerland

12.8

12.7

Spain

6.0

6.0

Italy

5.3

5.3

Netherlands

3.7

3.6

Sweden

2.9

2.9

Finland

2.1

2.2

Denmark

1.3

1.3

Belgium

1.1

1.1

Norway

1.1

1.1

Other European Countries

3.0

2.3

 

 

1 MSCI Europe Index.

2 MSCI All Country World Index ex USA.

3 The expense ratios shown are from the prospectus dated August 29, 2008. For the fiscal year ended October 31, 2008, the expense ratios were 0.22% for Investor Shares, 0.12% for Admiral Shares, 0.12% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares.

4 For an explanation of R-squared, beta, and other terms used here, see the Glossary.

5 The holdings listed exclude any temporary cash investments and equity index products.

 

 

11

European Stock Index Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

Cumulative Performance: October 31, 1998–October 31, 2008

Initial Investment of $10,000

 


 

 

 

Average Annual Total Returns

Final Value of

 

Periods Ended October 31, 2008

a $10,000

 

One Year

Five Years

Ten Years

Investment

European Stock Index Fund Investor Shares1

–47.80%

4.57%

1.69%

$11,824

MSCI All Country World Index ex USA

–48.27

5.05

3.19

13,692

MSCI Europe Index

–48.02

4.42

1.53

11,635

Average European Region Fund2

–49.48

4.13

1.94

12,122

 

 

 

 

 

Final Value of

 

 

 

Since

a $100,000

 

One Year

Five Years

Inception3

Investment

European Stock Index Fund Admiral Shares1

–47.74%

4.67%

2.96%

$123,435

MSCI All Country World Index ex USA

–48.27

5.05

4.22

134,713

MSCI Europe Index

–48.02

4.42

2.75

121,628

 

 

 

 

Final Value of

 

 

Since

a $10,000,000

 

One Year

Inception3

Investment

European Stock Index Fund Signal Shares1

–47.74%

–16.05%

$6,962,972

MSCI All Country World Index ex USA

–48.27

–15.28

7,096,378

MSCI Europe Index

–48.02

16.40

6,902,538

 

 

1 Total returns do not reflect the 0.5% transaction fee on purchases through March 31, 2000; the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months; or, for the Investor Shares, the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Derived from data provided by Lipper Inc.

3 Performance for the fund and its comparative standards is calculated since the following inception dates: August 13, 2001, for the Admiral Shares and October 6, 2006, for the Signal Shares.

 

12

European Stock Index Fund

 

 

 

 

 

 

Final Value of

 

 

 

Since

a $5,000,000

 

One Year

Five Years

Inception1

Investment

European Stock Index Fund Institutional Shares2

–47.72%

4.72%

–0.15%

$4,936,145

MSCI All Country World Index ex USA

–48.27

5.05

0.49

5,212,137

MSCI Europe Index

–48.02

4.42

–0.37

4,847,388

 

 

 

 

 

Final Value of

 

 

Since

a $10,000

 

One Year

Inception1

Investment

European Stock Index Fund ETF Shares Net Asset Value

–47.73%

–3.35%

$8,828

MSCI All Country World Index ex USA

–48.27

–2.35

9,168

MSCI Europe Index

–48.02

–3.65

8,727

 

 

Cumulative Returns: ETF Shares, March 4, 2005–October 31, 2008

 

 

Since

 

One Year

Inception1

European Stock Index Fund ETF Shares Market Price

–47.28%

–10.83%

European Stock Index Fund ETF Shares Net Asset Value

–47.73

–11.72

MSCI Europe Index

–48.02

–12.73

 

 

1 Performance for the fund and its comparative standards is calculated since the following inception dates: May 15, 2000, for the Institutional Shares and March 4, 2005, for the ETF Shares.

2 Total returns do not reflect the 0.5% transaction fee on purchases through March 31, 2000, or the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

 

 

13

European Stock Index Fund

 

Fiscal-Year Total Returns (%): October 31, 1998–October 31, 2008

 


 

Average Annual Total Returns: Periods Ended September 30, 2008

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

Inception Date

One Year

Five Years

Ten Years

European Stock Index Fund

 

 

 

 

Investor Shares1

6/18/1990

–30.04%

11.26%

5.01%

Admiral Shares1

8/13/2001

–29.99

11.36

6.602

Signal Shares1

10/6/2006

–29.98

–5.722

Institutional Shares1

5/15/2000

–29.97

11.41

2.812

ETF Shares

3/4/2005

 

 

Market Price

 

–29.29

3.722

Net Asset Value

 

–29.98

3.432

 

 

1 Total returns do not reflect the 0.5% transaction fee on purchases through March 31, 2000; the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months; or, for the Investor Shares, the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Returns since inception.

Note: See Financial Highlights tables for dividend and capital gains information.

 

 

14

European Stock Index Fund

 

Financial Statements

 

Statement of Net Assets

As of October 31, 2008

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Common Stocks (99.4%)1

 

 

Austria (0.6%)

 

 

 

OMV AG

541,937

17,347

^

Erste Bank der

 

 

 

Oesterreichischen

 

 

 

Sparkassen AG

617,659

16,467

 

Telekom Austria AG

1,133,107

13,923

 

Oesterreichische

 

 

 

Elektrizitaetswirtschafts

 

 

 

AG Class A

252,692

11,954

 

Voestalpine AG

379,871

9,270

 

Raiffeisen International

 

 

 

Bank-Holding AG

174,078

5,478

 

Wienerberger AG

274,945

4,564

*

Atrium European

 

 

 

Real Estate

998,913

4,542

 

Andritz AG

124,822

3,555

 

Vienna Insurance Group

122,666

3,311

 

Strabag SE

163,770

3,206

*

IMMOFINANZ AG

1,465,265

1,634

*

IMMOEAST Immobilien

 

 

 

Anlagen AG

1,330,952

1,605

 

 

 

96,856

Belgium (1.1%)

 

 

^

InBev NV

606,503

24,462

 

KBC Bank &

 

 

 

Verzekerings Holding

522,976

22,484

 

Groupe Bruxelles

 

 

 

Lambert SA

264,070

19,399

 

Belgacom SA

553,444

18,936

 

Delhaize Group

326,858

18,382

 

Solvay SA

194,250

18,068

 

Colruyt NV

54,325

12,210

^

Dexia

1,743,399

9,273

 

UCB SA

331,810

8,446

^

Fortis

7,230,107

8,377

 

Umicore

402,363

7,196

 

Compagnie Nationale a

 

 

 

Portefeuille

127,975

6,921

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Mobistar SA

101,710

6,749

 

KBC Ancora

99,989

2,972

 

 

 

183,875

Denmark (1.3%)

 

 

 

Novo Nordisk A/S

 

 

 

B Shares

1,500,382

80,425

*

Vestas Wind Systems A/S

607,475

24,882

 

Danske Bank A/S

1,479,595

21,903

 

AP Moller-Maersk A/S

 

 

 

B Shares

3,584

20,626

 

Novozymes A/S

151,103

10,667

 

AP Moller-Maersk A/S

 

 

 

A Shares

1,805

10,524

 

Carlsberg A/S B Shares

231,276

9,105

^

DSV A/S

631,217

7,584

 

Danisco A/S

159,675

6,918

^

FLS Industries A/S

 

 

 

B Shares

174,427

6,506

 

Coloplast A/S B Shares

80,247

5,819

*

Topdanmark A/S

51,456

5,559

^

Trygvesta A/S

89,445

5,378

*

Jyske Bank A/S

165,713

4,895

 

Sydbank A/S

204,547

3,179

^,*

William Demant A/S

77,995

2,984

^

Rockwool International A/S

26,738

1,798

 

 

 

228,752

Finland (2.1%)

 

 

 

Nokia Oyj

12,431,942

190,435

 

Fortum Oyj

1,451,547

35,673

 

Sampo Oyj A Shares

1,400,647

28,069

 

UPM-Kymmene Oyj

1,705,266

24,113

 

Stora Enso Oyj R Shares

1,895,807

17,630

 

Kone Oyj

500,352

11,196

 

Wartsila Oyj B Shares

273,965

6,941

 

Elisa Oyj Class A

458,033

6,890

 

Neste Oil Oyj

418,260

6,616

 

Metso Oyj

423,100

5,623

 

Kesko Oyj

217,188

5,084

 

Pohjola Bank PLC

369,044

4,965

 

Nokian Renkaat Oyj

350,245

4,579

 

 

15

European Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Rautaruuki Oyj

270,123

4,408

 

Orion Oyj

283,516

4,166

^

Sanoma Oyj

269,766

4,129

 

Outokumpu Oyj A Shares

376,772

3,904

^

YIT Oyj

420,880

2,621

 

Cargotec Corp.

112,023

1,551

 

 

 

368,593

France (15.2%)

 

 

 

Total SA

7,067,224

388,793

 

Sanofi-Aventis

3,440,561

217,984

 

BNP Paribas SA

2,666,717

192,541

 

Gaz de France

3,584,919

159,578

 

France Telecom SA

5,986,774

150,960

 

Vivendi SA

3,811,913

99,640

 

AXA

5,062,423

96,713

 

Carrefour SA

2,075,118

87,663

 

Societe Generale Class A

1,526,648

83,210

 

Groupe Danone

1,428,888

79,562

 

Air Liquide SA

807,617

69,693

 

L’Oreal SA

799,359

60,531

 

LVMH Louis Vuitton

 

 

 

Moet Hennessy

801,325

53,323

 

Vinci SA

1,357,124

48,839

 

Schneider Electric SA

722,352

43,296

 

Credit Agricole SA

2,912,674

42,138

 

Unibail Co.

267,503

40,121

 

Electricite de France

655,483

39,384

 

Cie. de St. Gobain SA

928,653

35,834

 

Pernod Ricard SA

538,073

35,039

 

Alstom

696,026

34,498

 

Bouygues SA

797,782

33,970

 

Lafarge SA

479,870

31,723

 

Veolia Environnement

1,234,536

30,594

 

Essilor International SA

656,738

29,460

^

Hermes International

225,695

29,130

 

Accor SA

640,235

24,909

 

Compagnie Generale

 

 

 

des Etablissements

 

 

 

Michelin SA

472,249

24,307

*

Alcatel-Lucent

7,595,861

19,614

 

Vallourec SA

173,276

19,382

 

Renault SA

604,441

18,525

 

STMicroelectronics NV

2,227,863

18,314

*

Suez Environnement SA

884,230

16,905

 

Pinault-Printemps-Redoute

 

 

 

SA

250,907

15,990

 

Lagardere S.C.A.

393,128

15,631

 

Sodexho Alliance SA

311,912

14,976

 

Cap Gemini SA

451,488

14,547

 

PSA Peugeot Citroen

497,864

13,285

 

Thales SA

292,651

11,743

 

Christian Dior SA

178,907

10,839

 

Technip SA

336,491

10,076

 

Casino Guichard-Perrachon

 

 

 

SA

143,653

10,042

 

CNP Assurances

122,638

9,882

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Publicis Groupe SA

410,989

9,289

 

SCOR SA

564,904

9,255

 

Neopost SA

104,633

8,760

^

Dassault Systemes SA

208,336

8,626

 

Safran SA

615,472

7,811

 

Natixis

3,184,064

7,051

*

Compagnie Generale

 

 

 

de Geophysique SA

426,135

6,890

 

Air France

437,379

6,302

*

Eutelsat Communications

290,614

6,238

 

Aeroports de Paris (ADP)

95,771

5,700

 

Zodiac SA

137,836

5,390

 

Klepierre

233,888

5,387

 

Atos Origin SA

225,237

5,230

 

Legrand SA

302,866

5,040

^

Societe Television

 

 

 

Francaise 1

391,067

5,014

 

Eurazeo

82,491

4,967

 

Bureau Veritas SA

134,243

4,786

^

Eiffage SA

123,396

4,741

 

Societe BIC SA

87,867

4,641

^

Valeo SA

245,728

4,280

 

Imerys SA

93,909

4,275

^

Wendel Investissement

89,296

4,266

 

ICADE

65,764

3,931

^

PagesJaunes SA

405,532

3,845

^

JCDecaux SA

212,223

3,688

 

Gecina SA

50,189

3,485

 

Eramet SLN

16,541

3,353

 

M6 Metropole Television

206,356

3,250

 

 

 

2,638,675

Germany (12.9%)

 

 

^

Volkswagen AG

473,445

301,282

 

E.On AG

6,218,765

233,047

 

Siemens AG

2,840,980

167,066

 

Bayer AG

2,500,528

136,882

 

Deutsche Telekom AG

9,273,920

136,058

 

RWE AG

1,455,227

119,301

 

Allianz AG

1,479,714

108,596

 

BASF AG

3,095,110

102,181

 

SAP AG

2,854,837

99,951

 

Muenchener

 

 

 

Rueckversicherungs-

 

 

 

Gesellschaft AG

 

 

 

(Registered)

675,183

87,652

 

Daimler AG (Registered)

2,511,541

85,141

 

Deutsche Bank AG

1,772,962

66,232

 

Deutsche Boerse AG

637,973

49,893

 

Linde AG

438,696

36,299

 

Continental AG

 

 

 

Acceptance Line

484,850

34,540

 

Deutsche Post AG

2,766,157

30,330

 

Fresenius Medical Care

 

 

 

AG

623,217

27,610

 

Bayerische Motoren

 

 

 

Werke AG

1,083,250

27,470

 

16

European Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Porsche AG

285,684

24,968

 

Commerzbank AG

2,245,135

23,896

 

Adidas AG

666,554

23,154

 

ThyssenKrupp AG

1,181,415

22,377

 

Volkswagen AG Pfd.

345,289

21,292

 

K&S AG

487,570

18,887

 

Merck KGaA

211,022

18,641

 

Man AG

347,637

16,997

 

Henkel AG & Co. KGaA

585,615

16,736

 

Fresenius AG Pfd.

263,297

16,714

 

Beiersdorf AG

287,045

14,979

 

Metro AG

373,755

11,918

 

DaimlerChrysler AG

327,337

11,293

 

Henkel KGaA

426,987

10,441

 

Deutsche Lufthansa AG

749,417

10,380

 

Salzgitter AG

133,687

8,608

^

TUI AG

699,731

8,451

 

Celesio AG

277,931

8,170

 

RWE AG Pfd.

126,372

7,891

*

Q-Cells AG

195,388

7,737

*

Infineon Technologies AG

2,443,705

7,568

^

Solarworld AG

271,643

6,686

^

HeidelbergCement AG

82,364

6,117

 

Wacker Chemie AG

51,710

5,588

 

Bilfinger Berger AG

122,964

5,540

 

Fresenius AS

93,136

5,449

^

Deutsche Postbank AG

268,603

5,409

 

Hannover

 

 

 

Rueckversicherung AG

200,424

4,962

 

Hochtief AG

135,203

4,149

 

Fraport AG

121,722

3,899

*

United Internet AG

417,737

3,696

 

Rheinmetall AG

114,951

3,500

 

Puma AG

20,402

3,399

^

Hypo Real Estate Holding

 

 

 

AG

516,566

3,364

 

Bayerische Motoren Werke

 

 

 

(BMW)

166,088

3,320

 

Hamburger Hafen

 

 

 

und Logistik AG

81,289

2,759

 

IVG Immobilien AG

296,255

1,940

^,*

Arcandor AG

372,475

870

^

ProSieben Sat.1 Media AG

258,624

765

^

Continental AG

2,378

101

 

 

 

2,232,142

Greece (0.8%)

 

 

 

National Bank of Greece

 

 

 

SA

1,349,401

29,644

 

Alpha Credit Bank SA

1,239,359

18,095

 

Greek Organization of

 

 

 

Football Prognostics

729,090

15,919

 

Bank of Piraeus

1,019,833

12,937

 

EFG Eurobank Ergasias

1,031,126

11,208

 

Hellenic

 

 

 

Telecommunications

 

 

 

Organization SA

622,527

8,786

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Marfin Financial Group

 

 

 

SA

1,974,640

8,693

 

Coca-Cola Hellenic

 

 

 

Bottling Co. SA

537,115

7,496

 

GEA Group AG

487,105

6,995

 

National Bank of Greece

 

 

 

SA ADR

1,379,083

6,027

 

Public Power Corp.

339,494

4,198

 

Hellenic

 

 

 

Telecommunications

 

 

 

Organization SA ADR

516,570

3,750

 

Hellenic Petroleum SA

389,295

3,225

 

Titan Cement Co. SA

184,670

3,154

 

 

 

140,127

Ireland (0.6%)

 

 

 

CRH PLC

1,756,106

38,585

 

Allied Irish Banks PLC

2,867,306

15,273

*

Elan Corp. PLC

1,550,298

11,697

 

Kerry Group PLC

 

 

 

A Shares

460,036

10,251

 

Bank of Ireland

3,279,465

9,683

^

Anglo Irish Bank Corp.

 

 

 

PLC

2,444,939

7,848

*

Ryanair Holdings PLC

 

 

 

ADR

161,755

3,602

 

Irish Life & Permanent PLC

866,373

2,964

*

Ryanair Holdings PLC

357,520

1,246

 

 

 

101,149

Italy (5.3%)

 

 

 

Eni SpA

8,516,877

203,282

 

Enel SpA

14,165,636

94,772

 

Intesa Sanpaolo SpA

25,195,698

92,214

 

UniCredit SpA

37,105,117

90,834

 

Assicurazioni Generali

 

 

 

SpA

3,459,783

87,373

 

Telecom Italia SpA

32,830,147

37,714

 

Unione Di

 

 

 

Banche Italiane ScpA

1,986,838

33,518

 

Banco Popolare SpA

2,094,722

26,132

 

Fiat SpA

2,317,453

18,389

 

Mediobanca Banca di

 

 

 

Credito Finanziaria SpA

1,609,904

18,380

 

Telecom Italia SpA RNC

19,764,142

16,632

 

Saipem SpA

862,007

16,202

 

Banca Monte dei Paschi

 

 

 

di Siena SpA

8,089,039

15,705

 

Atlantia SpA

839,133

15,359

 

Mediaset SpA

2,509,537

13,634

 

Snam Rete Gas SpA

2,567,396

12,996

 

Terna SpA

3,935,540

12,693

 

Finmeccanica SpA

984,752

12,213

 

Parmalat SpA

5,505,962

9,667

 

Alleanza Assicurazioni

 

 

 

SpA

1,376,767

9,178

 

Luxottica Group SpA

453,474

9,164

 

17

European Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Intesa Sanpaolo SpA

 

 

 

Non Convertible Risp.

2,885,324

8,564

 

Banca Popolare di Milano

 

 

 

SpA

1,285,151

7,521

 

A2A SpA

4,070,374

7,419

 

Banca Carige SpA

2,351,971

5,028

 

Lottomatica SpA

200,992

4,693

 

Prysmian SpA

358,881

4,354

 

Fondiari-Sai SpA

227,980

4,283

 

Unipol Gruppo Finanziario

 

 

 

SpA

2,206,084

3,914

 

Bulgari SpA

499,865

3,738

 

Unipol Gruppo Finanziario

 

 

 

SpA Pfd.

3,049,854

3,347

 

IFIL Investments SpA

988,473

3,065

 

Pirelli & C. Accomandita

 

 

 

per Azioni SpA

8,438,712

2,975

 

Mediolanum SpA

701,564

2,751

 

Italcementi SpA

227,872

2,656

 

Autogrill SpA

324,934

2,597

 

Italcementi SpA Risp.

338,104

2,353

*

IFI-Istituto Finanziario

 

 

 

Industriale SpA

226,075

1,974

*

Finmeccanica SpA

 

 

 

Rights Exp. 11/7/08

937,309

382

 

 

 

917,665

Luxembourg (0.6%)

 

 

 

ArcelorMittal

 

 

 

(Paris Shares)

2,843,784

73,965

 

SES Global Fiduciary

 

 

 

Depositary Receipts

989,272

17,797

 

Millicom International

 

 

 

Cellular SA

231,749

8,571

 

Acergy SA

629,485

4,257

 

 

 

104,590

Netherlands (3.7%)

 

 

 

Unilever NV

5,329,342

128,434

 

Koninklijke KPN NV

5,897,571

83,057

 

Koninklijke (Royal)

 

 

 

Philips Electronics NV

3,366,016

62,203

 

ING Groep NV

6,240,706

58,540

 

Koninklijke Ahold NV

3,899,935

41,867

 

Akzo Nobel NV

889,484

36,972

 

Reed Elsevier NV

2,052,068

27,428

 

Heineken NV

801,456

27,036

 

TNT NV

1,240,995

26,190

 

ASML Holding NV

1,378,420

24,131

 

Aegon NV

4,562,166

18,957

^

European Aeronautic

 

 

 

Defence and Space Co.

1,060,736

17,643

 

Wolters Kluwer NV

972,574

17,217

 

Koninklijke DSM NV

444,346

12,374

 

Heineken Holding NV

360,885

10,956

 

SBM Offshore NV

467,337

8,221

 

Corio NV

142,289

7,604

 

Fugro NV

191,349

6,838

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Randstad Holding NV

319,907

6,218

 

Koninklijke Boskalis

 

 

 

Westminster NV

179,098

5,913

 

SNS REAAL

419,765

3,079

^,*

TomTom NV

194,425

1,482

 

ASML Holding NV

 

 

 

(New York Shares)

34,293

602

 

Aegon NV (New York) ARS

3,320

14

 

 

 

632,976

Norway (1.1%)

 

 

 

StatoilHydro ASA

4,198,527

84,448

 

Orkla ASA

2,711,944

18,054

 

Telenor ASA

2,741,223

16,357

 

DnB NOR ASA

2,396,241

13,887

 

Yara International ASA

622,672

13,009

 

Norsk Hydro ASA

2,255,503

9,424

 

Seadrill Ltd.

909,583

8,757

^

Frontline Ltd.

172,000

5,350

^,*

Renewable Energy Corp.

 

 

 

AS

488,200

4,606

 

Storebrand ASA

1,278,459

3,030

 

Aker Solutions ASA

527,145

2,883

*

Petroleum Geo-Services

 

 

 

ASA

542,477

2,701

 

 

 

182,506

Portugal (0.4%)

 

 

 

Electricidade de

 

 

 

Portugal SA

5,984,810

20,385

 

Portugal Telecom

 

 

 

SGPS SA

2,007,779

13,205

^

Banco Comercial

 

 

 

Portugues SA

7,629,963

8,868

^

Brisa-Auto Estradas de

 

 

 

Portugal SA

979,314

7,513

 

Banco Espirito Santo SA

735,978

7,007

^

Cimpor-Cimento de

 

 

 

Portugal SA

891,716

4,069

 

Jeronimo Martins,

 

 

 

SGPS, SA

733,322

3,742

 

Zon Multimedia Servicos

 

 

 

de Telecomunicacoes

 

 

 

e Multimedia SGPS SA

548,772

2,785

 

Banco BPI SA

874,411

1,802

 

Sonae SGPS SA

2,843,363

1,729

 

 

 

71,105

Spain (5.9%)

 

 

 

Telefonica SA

13,792,445

255,366

 

Banco Santander

 

 

 

Central Hispano SA

20,524,656

221,978

 

Banco Bilbao Vizcaya

 

 

 

Argentaria SA

11,648,522

135,197

 

Iberdrola SA

11,436,717

82,772

 

Repsol YPF SA

2,396,926

45,580

*

Union Fenosa, SA

1,196,281

25,382

 

18

European Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Industria de Diseno Textil

 

 

 

SA

713,954

24,133

^

ACS, Actividades de

 

 

 

Contruccion y Servisios,

 

 

 

SA

636,597

23,636

^

Banco Popular Espanol

 

 

 

SA

2,590,952

23,579

^

Banco de Sabadell SA

3,003,428

20,486

 

Red Electrica de Espana

 

 

 

SA

352,511

15,451

^

Abertis Infraestructuras

 

 

 

SA

874,466

15,018

 

Enagas SA

585,621

11,442

 

Gas Natural SDG SA

367,852

11,322

 

Gamesa Corporacion

 

 

 

Tecnologica SA

600,134

9,839

^

Bankinter SA

860,835

9,289

 

Criteria Caixacorp SA

2,768,375

8,959

 

Acciona SA

92,900

8,787

*

Iberdrola Renovables

2,745,041

8,351

 

Grifols SA

413,082

8,221

^

Zardoya Otis SA

414,946

7,861

^

Corporacion Mapfre SA

2,229,794

7,096

^

Grupo Ferrovial SA

208,326

6,420

^

Cintra Concesiones de

 

 

 

Infraestructuras de

 

 

 

Transport SA

709,164

6,309

^

Indra Sistemas, SA

322,039

6,258

^

Fomento de Construc

 

 

 

y Contra SA

150,120

5,969

^

Acerinox SA

467,286

5,874

 

Telefonica SA ADR

87,308

4,846

^,*

Banco Santander SA

403,252

4,431

^

Iberia

 

 

 

(Linea Aerea Espana)

1,539,517

3,632

^

Gestevision Telecinco SA

353,420

2,838

^

Sacyr Vallehermoso SA

243,285

2,244

^

Promotora de

 

 

 

Informaciones SA

287,236

1,125

 

 

 

1,029,691

Sweden (2.9%)

 

 

 

Telefonaktiebolaget

 

 

 

LM Ericsson AB

 

 

 

Class B

9,699,502

66,028

^

Hennes & Mauritz

 

 

 

AB B Shares

1,672,317

59,968

 

Nordea Bank AB

6,803,694

54,532

 

TeliaSonera AB

7,348,882

32,333

 

Svenska Handelsbanken

 

 

 

AB A Shares

1,501,424

27,592

 

Investor AB B Shares

1,490,700

22,482

 

Sandvik AB

3,285,297

21,322

 

Volvo AB B Shares

3,553,810

18,571

 

Atlas Copco AB A Shares

2,190,072

18,369

^

Skandinaviska Enskilda

 

 

 

Banken AB A Shares

1,522,997

15,094

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Svenska Cellulosa

 

 

 

AB B Shares

1,839,478

13,583

 

Swedish Match AB

836,994

11,623

 

SKF AB B Shares

1,268,101

11,551

 

Assa Abloy AB

1,028,571

11,484

 

Skanska AB B Shares

1,241,678

10,906

 

Securitas AB B Shares

1,028,615

9,876

^

Swedbank AB A Shares

1,174,639

9,707

 

Scania AB B Shares

1,168,548

9,604

 

Atlas Copco AB B Shares

1,273,595

9,535

 

Alfa Laval AB

1,250,704

9,029

 

Tele2 AB B Shares

1,005,494

8,580

 

Getinge AB B Shares

591,918

8,279

^

Electrolux AB Series B

820,765

7,556

^

Husqvarna AB B Shares

898,089

6,227

 

SSAB Svenskt Stal

 

 

 

AB Series A

581,316

5,878

^

Holmen AB

173,838

4,900

 

Modern Times Group

 

 

 

AB B Shares

165,453

3,550

^,*

Lundin Petroleum AB

703,154

3,357

 

SSAB Svenskt Stal

 

 

 

AB Series B

265,337

2,405

^

Boliden AB

921,095

2,215

 

 

 

496,136

Switzerland (12.7%)

 

 

 

Nestle SA (Registered)

12,858,743

500,038

 

Novartis AG (Registered)

7,783,387

395,069

 

Roche Holdings AG

2,298,344

351,479

*

UBS AG

9,514,695

161,438

 

Credit Suisse Group

 

 

 

(Registered)

3,422,814

127,992

 

Zurich Financial Services

 

 

 

AG

476,200

96,610

 

ABB Ltd.

7,198,007

94,446

 

Syngenta AG

340,427

63,637

 

Swiss Re (Registered)

1,151,061

48,004

 

Holcim Ltd. (Registered)

689,946

39,188

*

Compagnie Financiere

 

 

 

Richemont SA

1,708,168

35,910

 

Julius Baer Holding, Ltd.

693,713

27,131

 

Synthes, Inc.

194,197

25,060

 

Swisscom AG

74,196

22,671

*

Actelion Ltd.

321,017

16,959

 

Swatch Group AG (Bearer)

104,047

16,236

 

SGS Societe Generale de

 

 

 

Surveillance Holding

 

 

 

SA (Registered)

15,328

15,091

 

Givaudan SA

21,363

14,557

 

Adecco SA (Registered)

401,867

13,980

 

Geberit AG

129,576

13,462

 

Lonza AG (Registered)

155,862

12,935

 

Kuehne &

 

 

 

Nagel International AG

175,199

10,608

 

Swiss Life Holding

114,765

10,341

 

Baloise Holdings AG

165,780

8,863

 

19

European Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Logitech International SA

567,817

8,465

 

Schindler Holding AG

 

 

 

(Bearer Participation

 

 

 

Certificates)

167,792

7,264

 

Pargesa Holding SA

88,661

6,792

 

Nobel Biocare Holding AG

391,223

6,721

 

Sonova Holding AG

153,643

6,384

 

Lindt & Spruengli AG

2,719

5,849

 

Sulzer AG (Registered)

88,009

5,196

 

Swatch Group AG

 

 

 

(Registered)

169,717

4,860

*

Aryzta AG (Ireland Shares)

135,681

4,842

^

Straumann Holding AG

25,815

4,381

*

Aryzta AG

120,510

4,261

 

EFG International

170,944

3,680

^,*

OC Oerlikon Corp AG

22,574

1,751

*

UBS AG (New York Shares)

100,268

1,695

 

 

 

2,193,846

United Kingdom (32.2%)

 

 

 

BP PLC

58,158,406

474,077

 

HSBC Holdings PLC

39,272,586

465,153

 

GlaxoSmithKline PLC

17,893,098

343,976

 

Vodafone Group PLC

163,507,416

314,542

 

Royal Dutch Shell PLC

 

 

 

Class B

8,961,986

242,975

 

Royal Dutch Shell PLC

 

 

 

Class A

 

 

 

(Amsterdam Shares)

8,492,604

235,389

 

AstraZeneca Group PLC

4,763,526

201,871

 

BG Group PLC

10,945,624

160,944

 

British American Tobacco

 

 

 

PLC

5,624,275

154,270

 

Rio Tinto PLC

3,265,061

152,518

 

Tesco PLC

25,690,147

140,759

 

Diageo PLC

8,344,153

127,336

 

BHP Billiton PLC

7,220,395

122,606

 

Anglo American PLC

4,324,974

108,519

 

Unilever PLC

4,246,214

95,395

 

National Grid Transco

 

 

 

PLC

8,163,540

91,963

 

Imperial Tobacco Group

 

 

 

PLC

3,324,007

89,088

 

Royal Dutch Shell PLC

 

 

 

Class A

3,111,039

85,475

 

Reckitt Benckiser Group

 

 

 

PLC

1,979,431

83,729

 

Standard Chartered PLC

4,646,517

76,793

 

Barclays PLC

26,640,814

76,368

 

BAE Systems PLC

11,514,840

64,724

 

Lloyds TSB Group PLC

19,412,063

62,742

 

Royal Bank of

 

 

 

Scotland Group PLC

54,080,402

59,570

 

Centrica PLC

12,053,088

59,227

 

Scottish &

 

 

 

Southern Energy PLC

2,846,290

55,792

 

Aviva PLC

8,691,979

51,848

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

BT Group PLC

25,280,961

47,504

 

SABMiller PLC

2,955,882

46,951

 

Prudential PLC

8,145,080

40,915

 

Cadbury PLC

4,431,135

40,688

 

British Energy Group PLC

3,382,598

40,459

 

Xstrata PLC

2,079,175

35,563

 

Morrison Supermarkets

 

 

 

PLC

7,902,909

33,650

 

Man Group PLC

5,618,518

32,438

 

Reed Elsevier PLC

3,603,325

31,617

 

Rolls-Royce Group PLC

5,957,768

31,522

 

HBOS PLC

17,679,593

28,949

 

BP PLC ADR

575,360

28,595

 

Compass Group PLC

6,066,235

28,209

 

Standard Life PLC

7,124,413

27,579

 

Land Securities Group

 

 

 

PLC

1,541,072

27,355

 

Smith & Nephew PLC

2,905,415

26,603

 

Pearson PLC

2,643,786

26,333

*

United Utilities Group

 

 

 

PLC

2,230,852

25,191

 

Shire Ltd.

1,832,864

24,017

 

Royal & Sun Alliance

 

 

 

Insurance Group PLC

10,657,932

23,701

 

Legal & General Group

 

 

 

PLC

19,780,658

22,750

 

British Sky

 

 

 

Broadcasting Group

 

 

 

PLC

3,729,227

22,694

 

Capita Group PLC

1,971,882

20,375

 

Tullow Oil PLC

2,357,944

20,025

 

Vodafone Group PLC ADR

1,030,225

19,852

 

WPP Group PLC

3,244,313

19,407

 

Experian Group Ltd.

3,357,547

18,517

 

Marks & Spencer Group

 

 

 

PLC

5,181,283

18,368

 

International Power PLC

4,947,354

17,699

 

Severn Trent PLC

768,873

16,995

 

British Land Co., PLC

1,662,872

16,581

 

Smiths Group PLC

1,261,798

16,246

 

Cable and Wireless PLC

8,175,900

16,205

 

J. Sainsbury PLC

3,420,343

15,625

 

Kingfisher PLC

7,717,310

14,244

 

Old Mutual PLC

16,362,880

13,250

 

Associated British Foods

 

 

 

PLC

1,161,622

12,998

 

Rexam PLC

2,107,372

12,699

 

Group 4 Securicor PLC

4,151,079

12,572

 

The Sage Group PLC

4,289,767

12,009

 

Wolseley PLC

2,171,127

11,882

 

Carnival PLC

532,567

11,712

 

Cobham PLC

3,732,869

11,345

*

Cairn Energy PLC

431,793

11,187

 

Next PLC

651,996

11,082

 

3i Group PLC

1,261,866

11,007

 

Hammerson PLC

952,930

10,983

 

20

European Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Bunzl PLC

1,076,863

10,827

^

Thomson Reuters PLC

614,742

10,651

 

Johnson Matthey PLC

696,564

10,484

 

FirstGroup PLC

1,581,027

10,433

 

Drax Group PLC

1,112,680

10,339

 

Lonmin PLC

515,041

9,606

 

Serco Group PLC

1,591,221

9,489

 

Liberty International PLC

822,661

9,153

 

Home Retail Group

2,851,297

9,088

 

Amec PLC

1,078,670

9,025

 

Tate & Lyle PLC

1,500,202

8,919

 

Friends Provident PLC

7,541,583

8,648

 

ICAP PLC

1,692,333

8,433

 

Whitbread PLC

576,990

8,363

 

Antofagasta PLC

1,288,868

7,963

 

InterContinental

 

 

 

Hotels Group PLC

862,000

7,318

 

Vedanta Resources PLC

475,400

6,584

 

Segro PLC

1,441,688

6,509

*

Invensys PLC

2,571,746

6,449

 

Burberry Group PLC

1,432,391

6,375

 

Balfour Beatty PLC

1,568,451

6,338

 

TUI Travel PLC

1,836,703

5,606

 

LogicaCMG PLC

4,775,049

5,316

 

Tomkins PLC

2,876,781

5,280

 

Stagecoach Group PLC

1,747,353

5,247

 

Eurasian Natural

 

 

 

Resources Corp.

1,044,573

5,224

 

Schroders PLC

406,988

5,217

 

ITV PLC

10,752,321

5,193

 

Investec PLC

1,326,697

5,038

 

Hays PLC

4,525,365

4,968

 

Ladbrokes PLC

1,938,116

4,939

 

United Business

 

 

 

Media Ltd.

756,774

4,924

 

Meggitt PLC

2,186,146

4,789

^

Persimmon PLC

962,035

4,657

 

IMI PLC

1,047,957

4,657

 

London Stock Exchange

 

 

 

PLC

503,273

4,566

 

GKN PLC

2,323,697

4,456

 

Daily Mail and

 

 

 

General Trust PLC

908,886

4,280

 

Thomas Cook Group PLC

1,575,279

4,273

 

Mondi PLC

1,174,912

4,264

 

Rentokil Initial PLC

5,793,344

4,211

 

British Airways PLC

1,857,699

4,111

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

National Express Group

 

 

 

PLC

426,535

3,929

 

William Hill PLC

1,113,603

3,424

 

Mitchells & Butlers PLC

1,342,377

3,398

 

Kazakhmys PLC

713,165

3,344

 

The Berkeley Group

 

 

 

Holdings PLC

270,078

3,252

^

Carphone Warehouse

 

 

 

PLC

1,313,186

2,851

 

Enterprise Inns PLC

1,598,578

2,517

 

WPP Group PLC ADR

78,406

2,384

 

Inchcape PLC

1,381,578

1,762

 

 

 

5,572,868

Total Common Stocks

 

 

(Cost $24,683,829)

 

17,191,552

Temporary Cash Investments (3.2%)1

 

 

Money Market Fund (3.0%)

 

 

2,3

Vanguard Market

 

 

 

Liquidity Fund,

 

 

 

2.217%

524,204,153

524,204

 

 

 

 

 

 

Face

 

 

 

Amount

 

 

 

($000)

 

U.S. Agency Obligations (0.2%)

 

 

4

Federal Home Loan Bank,

 

 

 

2.674%, 2/27/09

9,000

8,930

4

Federal Home Loan

 

 

 

Mortgage Corp.,

 

 

 

2.383%, 2/9/09

10,000

9,934

4,5

Federal National

 

 

 

Mortgage Assn.,

 

 

 

2.585%, 11/17/08

11,000

10,992

 

 

 

29,856

Total Temporary Cash Investments

 

 

(Cost $554,048)

 

554,060

Total Investments (102.6%)

 

 

(Cost $25,237,877)

 

17,745,612

Other Assets and Liabilites (–2.6%)

 

 

Other Assets

 

200,308

Liabilities3

 

(647,791)

 

 

 

(447,483)

Net Assets (100%)

 

17,298,129

 

 

21

European Stock Index Fund

 

At October 31, 2008, net assets consisted of:

 

Amount

 

($000)

Paid-in Capital

24,360,187

Undistributed Net Investment Income

1,073,239

Accumulated Net Realized Losses

(616,281)

Unrealized Appreciation (Depreciation)

 

Investment Securities

(7,492,265)

Futures Contracts

(14,447)

Foreign Currencies and Forward

 

Currency Contracts

(12,304)

Net Assets

17,298,129

 

 

Investor Shares—Net Assets

 

Applicable to 478,999,317 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

10,534,353

Net Asset Value Per Share—

 

Investor Shares

$21.99

 

 

Admiral Shares—Net Assets

 

Applicable to 28,466,434 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

1,471,904

Net Asset Value Per Share—

 

Admiral Shares

$51.71

 

 

Signal Shares—Net Assets

 

Applicable to 11,130,074 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

222,722

Net Asset Value Per Share—

 

Signal Shares

$20.01

 

 

Institutional Shares—Net Assets

 

Applicable to 150,430,711 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

3,315,638

Net Asset Value Per Share—

 

Institutional Shares

$22.04

 

 

ETF Shares—Net Assets

 

Applicable to 42,390,728 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

1,753,512

Net Asset Value Per Share—

 

ETF Shares

$41.37

 

See Note A in Notes to Financial Statements.

^

Part of security position is on loan to broker-dealers. The total value of securities on loan is $414,364,000.

*

Non-income-producing security.

1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 99.9% and 2.7%, respectively, of net assets.

2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

3 Includes $434,146,000 of collateral received for securities on loan.

4 The issuer operates under a congressional charter; its securities are neither issued nor guaranteed by the U.S. government.

5 Securities with a value of $10,992,000 have been segregated as initial margin for open futures contracts.

ADR—American Depositary Receipt.

ARS—Auction Rate Security.

See accompanying Notes, which are an integral part of the Financial Statements.

22

European Stock Index Fund

 

Statement of Operations

 

 

Year Ended

 

October 31, 2008

 

($000)

Investment Income

 

Income

 

Dividends1

1,212,764

Interest2

3,604

Security Lending

49,302

Total Income

1,265,670

Expenses

 

The Vanguard Group—Note B

 

Investment Advisory Services

765

Management and Administrative—Investor Shares

37,024

Management and Administrative—Admiral Shares

1,986

Management and Administrative—Signal Shares

336

Management and Administrative—Institutional Shares

1,825

Management and Administrative—ETF Shares

1,563

Marketing and Distribution—Investor Shares

5,630

Marketing and Distribution—Admiral Shares

472

Marketing and Distribution—Signal Shares

75

Marketing and Distribution—Institutional Shares

1,183

Marketing and Distribution—ETF Shares

745

Custodian Fees

5,561

Auditing Fees

39

Shareholders’ Reports—Investor Shares

170

Shareholders’ Reports—Admiral Shares

10

Shareholders’ Reports—Signal Shares

2

Shareholders’ Reports—Institutional Shares

1

Shareholders’ Reports—ETF Shares

83

Trustees’ Fees and Expenses

40

Total Expenses

57,510

Net Investment Income

1,208,160

Realized Net Gain (Loss)

 

Investment Securities Sold

3,088,109

Futures Contracts

(76,194)

Foreign Currencies and Forward Currency Contracts

(8,781)

Realized Net Gain (Loss)

3,003,134

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities

(20,939,502)

Futures Contracts

(19,010)

Foreign Currencies and Forward Currency Contracts

(17,769)

Change in Unrealized Appreciation (Depreciation)

(20,976,281)

Net Increase (Decrease) in Net Assets Resulting from Operations

(16,764,987)

 

 

1 Dividends are net of foreign withholding taxes of $75,256,000.

2 Interest income from an affiliated company of the fund was $3,179,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

23

European Stock Index Fund

 

Statement of Changes in Net Assets

 

 

Year Ended October 31,

 

2008

2007

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

1,208,160

1,038,999

Realized Net Gain (Loss)

3,003,134

97,343

Change in Unrealized Appreciation (Depreciation)

(20,976,281)

6,493,764

Net Increase (Decrease) in Net Assets Resulting from Operations

(16,764,987)

7,630,106

Distributions

 

 

Net Investment Income

 

 

Investor Shares

(743,072)

(460,764)

Admiral Shares

(87,518)

(62,628)

Signal Shares

(14,971)

(341)

Institutional Shares

(139,970)

(90,854)

ETF Shares

(97,010)

(39,981)

Realized Capital Gain

 

 

Investor Shares

Admiral Shares

Signal Shares

Institutional Shares

ETF Shares

Total Distributions

(1,082,541)

(654,568)

Capital Share Transactions

 

 

Investor Shares

(3,934,149)

4,446,099

Admiral Shares

12,041

162,740

Signal Shares

(29,856)

467,826

Institutional Shares

815,638

1,192,242

ETF Shares

225,574

1,456,669

Net Increase (Decrease) from Capital Share Transactions

(2,910,752)

7,725,576

Total Increase (Decrease)

(20,758,280)

14,701,114

Net Assets

 

 

Beginning of Period

38,056,409

23,355,295

End of Period1

17,298,129

38,056,409

 

 

1 Net Assets—End of Period includes undistributed net investment income of $1,073,239,000 and $954,677,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

24

European Stock Index Fund

 

Financial Highlights

 

Investor Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$43.43

$34.67

$27.00

$23.77

$19.93

Investment Operations

 

 

 

 

 

Net Investment Income

1.3721

1.2981

.920

.670

.540

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(21.597)

8.386

7.450

3.140

3.760

Total from Investment Operations

(20.225)

9.684

8.370

3.810

4.300

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(1.215)

(.924)

(.700)

(.580)

(.460)

Distributions from Realized Capital Gains

Total Distributions

(1.215)

(.924)

(.700)

(.580)

(.460)

Net Asset Value, End of Period

$21.99

$43.43

$34.67

$27.00

$23.77

 

 

 

 

 

 

Total Return2

–47.80%

28.49%

31.63%

16.21%

21.89%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$10,534

$26,188

$16,850

$10,759

$7,904

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.22%

0.22%

0.27%

0.27%

0.27%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

3.82%

3.35%

3.35%

2.84%

2.67%

Portfolio Turnover Rate3

15%

9%

6%

5%

5%

 

 

1 Calculated based on average shares outstanding.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or the account service fee that may be applicable to certain accounts with balances below $10,000.

3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

25

European Stock Index Fund

 

Financial Highlights

 

Admiral Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$102.09

$81.50

$63.44

$55.84

$46.82

Investment Operations

 

 

 

 

 

Net Investment Income

3.1771

3.1401

2.230

1.611

1.308

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(50.618)

19.692

17.510

7.396

8.830

Total from Investment Operations

(47.441)

22.832

19.740

9.007

10.138

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(2.939)

(2.242)

(1.680)

(1.407)

(1.118)

Distributions from Realized Capital Gains

Total Distributions

(2.939)

(2.242)

(1.680)

(1.407)

(1.118)

Net Asset Value, End of Period

$51.71

$102.09

$81.50

$63.44

$55.84

 

 

 

 

 

 

Total Return2

–47.74%

28.59%

31.77%

16.32%

21.98%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$1,472

$2,955

$2,175

$1,360

$628

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.12%

0.12%

0.17%

0.18%

0.18%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

3.92%

3.45%

3.45%

2.93%

2.76%

Portfolio Turnover Rate3

15%

9%

6%

5%

5%

 

 

1 Calculated based on average shares outstanding.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

26

European Stock Index Fund

 

Financial Highlights

 

Signal Shares

 

 

 

 

 

 

Oct. 6,

 

Year Ended

20061 to

 

October 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

2006

Net Asset Value, Beginning of Period

$39.50

$31.51

$30.41

Investment Operations

 

 

 

Net Investment Income

1.2552

1.1512

.0102

Net Realized and Unrealized Gain (Loss) on Investments

(19.616)

7.681

1.090

Total from Investment Operations

(18.361)

8.832

1.100

Distributions

 

 

 

Dividends from Net Investment Income

(1.129)

(.842)

Distributions from Realized Capital Gains

Total Distributions

(1.129)

(.842)

Net Asset Value, End of Period

$20.01

$39.50

$31.51

 

 

 

 

Total Return3

–47.74%

28.59%

3.62%

 

 

 

 

Ratios/Supplemental Data

 

 

 

Net Assets, End of Period (Millions)

$223

$502

$12

Ratio of Total Expenses to Average Net Assets

0.12%

0.12%

0.17%4

Ratio of Net Investment Income to Average Net Assets

3.92%

3.45%

3.45%4

Portfolio Turnover Rate5

15%

9%

6%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Total returns do not reflect the 2% fee assessed on redemptions of shares held for less than two months.

4 Annualized.

5 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

27

European Stock Index Fund

 

Financial Highlights

 

Institutional Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$43.51

$34.74

$27.05

$23.80

$19.96

Investment Operations

 

 

 

 

 

Net Investment Income

1.3151

1.3501

.978

.721

.570

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(21.524)

8.390

7.450

3.140

3.760

Total from Investment Operations

(20.209)

9.740

8.428

3.861

4.330

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(1.261)

(.970)

(.738)

(.611)

(.490)

Distributions from Realized Capital Gains

Total Distributions

(1.261)

(.970)

(.738)

(.611)

(.490)

Net Asset Value, End of Period

$22.04

$43.51

$34.74

$27.05

$23.80

 

 

 

 

 

 

Total Return2

–47.72%

28.63%

31.83%

16.42%

22.03%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$3,316

$5,263

$3,113

$1,827

$988

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.09%

0.09%

0.12%

0.12%

0.12%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

3.95%

3.48%

3.50%

2.99%

2.77%

Portfolio Turnover Rate3

15%

9%

6%

5%

5%

 

 

1 Calculated based on average shares outstanding.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

28

European Stock Index Fund

 

Financial Highlights

 

ETF Shares

 

 

 

 

 

 

 

 

March 4,

 

 

 

 

20051 to

 

Year Ended October 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

2006

2005

Net Asset Value, Beginning of Period

$81.66

$65.21

$50.80

$50.96

Investment Operations

 

 

 

 

Net Investment Income

2.5302

2.5762

1.800

1.040

Net Realized and Unrealized Gain (Loss) on Investments

(40.464)

15.683

13.990

(1.200)

Total from Investment Operations

(37.934)

18.259

15.790

(.160)

Distributions

 

 

 

 

Dividends from Net Investment Income

(2.356)

(1.809)

(1.380)

Distributions from Realized Capital Gains

Total Distributions

(2.356)

(1.809)

(1.380)

Net Asset Value, End of Period

$41.37

$81.66

$65.21

$50.80

 

 

 

 

 

Total Return

–47.73%

28.60%

31.75%

–0.31%

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

Net Assets, End of Period (Millions)

$1,754

$3,148

$1,205

$178

Ratio of Total Expenses to Average Net Assets

0.11%

0.12%

0.18%

0.18%3

Ratio of Net Investment Income to Average Net Assets

3.93%

3.45%

3.44%

2.93%3

Portfolio Turnover Rate4

15%

9%

6%

5%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Annualized.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

29

European Stock Index Fund

 

Notes to Financial Statements

 

Vanguard European Stock Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. The fund offers five classes of shares: Investor Shares, Admiral Shares, Signal Shares, Institutional Shares, and ETF Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, tenure, and account-size criteria. Signal Shares are designed for institutional investors who meet certain administrative, service, and account-size criteria. Institutional Shares are designed for investors who meet certain administrative and service criteria and invest a minimum of $5 million. ETF Shares are listed for trading on the NYSE Arca, Inc.; they can be purchased and sold through a broker.

 

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.

 

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

 

30

European Stock Index Fund

 

3. Futures and Forward Currency Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, enhancing returns, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The fund may seek to enhance returns by using futures contracts instead of the underlying securities when futures are believed to be priced more attractively than the underlying securities. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market.

 

The fund also may enter into forward currency contracts to provide the appropriate currency exposure related to any open futures contracts. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts.

 

Futures and forward currency contracts are valued at their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures or forward currency contracts.

 

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended October 31, 2005–2008), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

 

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

 

6. Security Lending: The fund may lend its securities to qualified institutional borrowers to earn additional income. Security loans are required to be secured at all times by collateral at least equal to the market value of securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability for the return of the collateral, during the period the securities are on loan. Security lending income represents the income earned on investing cash collateral, less expenses associated with the loan.

 

7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on redemptions of capital shares are credited to paid-in capital.

 

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

 

31

European Stock Index Fund

 

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At October 31, 2008, the fund had contributed capital of $1,979,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 1.98% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

 

C. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

 

During the year ended October 31, 2008, the fund realized net foreign currency losses of $7,600,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized losses to undistributed net investment income. Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. During the year ended October 31, 2008, the fund realized gains on the sale of passive foreign investment companies of $543,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Unrealized appreciation of $19,314,000 on the fund’s passive foreign investment company holdings at October 31, 2007, has been distributed and is reflected in the balance of undistributed net investment income. Since October 31, 2007, the fund’s passive foreign investment company holdings have depreciated in value, reducing the amount of taxable income available for distribution as of October 31, 2008 by $14,818,000. Unrealized appreciation on the fund’s passive foreign investment company holdings at October 31, 2008, was $4,496,000.

 

During the year ended October 31, 2008, the fund realized $3,596,684,000 of net capital gains resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital.

 

For tax purposes, at October 31, 2008, the fund had $1,109,431,000 of ordinary income available for distribution. The fund had available realized losses of $370,782,000 to offset future net capital gains of $13,739,000 through October 31, 2011, and $357,043,000 through October 31, 2016.

 

At October 31, 2008, the cost of investment securities for tax purposes was $25,496,864,000. Net unrealized depreciation of investment securities for tax purposes was $7,751,252,000, consisting of unrealized gains of $583,528,000 on securities that had risen in value since their purchase and $8,334,780,000 in unrealized losses on securities that had fallen in value since their purchase.

 

32

European Stock Index Fund

 

At October 31, 2008, the aggregate settlement value of open futures contracts expiring in December 2008 and the related unrealized appreciation (depreciation) were:

 

 

 

 

 

($000)

 

Number of

Aggregate

Unrealized

 

Long (Short)

Settlement

Appreciation

Futures Contracts

Contracts

Value

(Depreciation)

MSCI Pan-Euro Index

4,433

85,106

(14,447)

 

 

At October 31, 2008, the fund had open forward currency contracts to receive and deliver currencies as follows:

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

Appreciation

 

Contract Amount (000)

(Depreciation)

Contract Settlement Date

 

Receive

 

Deliver

($000)

12/23/2008

EUR

58,608

USD

74,204

(10,078)

 

 

 

 

 

 

EUR—Euro.

 

 

 

 

 

USD—U.S. dollar.

 

 

 

 

 

 

Unrealized appreciation (depreciation) on open forward currency contracts is required to be treated as realized gain (loss) for tax purposes.

 

The fund had net unrealized foreign currency losses of $2,226,000 resulting from the translation of other assets and liabilities at October 31, 2008.

 

D. During the year ended October 31, 2008, the fund purchased $8,586,185,000 of investment securities and sold $11,402,293,000 of investment securities, other than temporary cash investments.

 

 

33

European Stock Index Fund

 

E. Capital share transactions for each class of shares were:

 

 

 

 

 

Year Ended October 31,

 

 

2008

 

2007

 

Amount

Shares

Amount

Shares

 

($000)

(000)

($000)

(000)

Investor Shares

 

 

 

 

Issued

4,845,905

141,072

5,660,208

147,210

Issued in Lieu of Cash Distributions

735,566

18,702

454,609

12,663

Redeemed1

(9,515,620)

(283,778)

(1,668,718)

(42,810)

Net Increase (Decrease)—Investor Shares

(3,934,149)

(124,004)

4,446,099

117,063

Admiral Shares

 

 

 

 

Issued

414,328

4,886

919,141

10,184

Issued in Lieu of Cash Distributions

73,521

796

51,856

615

Redeemed1

(475,808)

(6,157)

(808,257)

(8,547)

Net Increase (Decrease)—Admiral Shares

12,041

(475)

162,740

2,252

Signal Shares

 

 

 

 

Issued

155,336

4,630

477,278

12,591

Issued in Lieu of Cash Distributions

11,877

332

341

10

Redeemed1

(197,069)

(6,553)

(9,793)

(265)

Net Increase (Decrease)—Signal Shares

(29,856)

(1,591)

467,826

12,336

Institutional Shares

 

 

 

 

Issued

2,001,811

62,248

2,139,740

55,266

Issued in Lieu of Cash Distributions

129,816

3,297

80,880

2,251

Redeemed1

(1,315,989)

(36,071)

(1,028,378)

(26,180)

Net Increase (Decrease)—Institutional Shares

815,638

29,474

1,192,242

31,337

ETF Shares

 

 

 

 

Issued

454,883

7,234

1,456,669

20,084

Issued in Lieu of Cash Distributions

Redeemed1

(229,309)

(3,400)

Net Increase (Decrease)—ETF Shares

225,574

3,834

1,456,669

20,084

 

 

F. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

 

 

1 Net of redemption fees of $1,724,000 and $1,200,000 (fund totals).

 

 

34

European Stock Index Fund

 

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

The following table summarizes the fund’s investments as of October 31, 2008, based on the inputs used to value them:

 

 

 

 

 

Forward

 

Investments

Futures

Currency

 

in Securities

Contracts

Contracts

Valuation Inputs

($000)

($000)

($000)

Level 1—Quoted prices

606,865

(14,447)

(10,078)

Level 2—Other significant observable inputs

17,138,747

Level 3—Significant unobservable inputs

Total

17,745,612

(14,447)

(10,078)

 

 

35

Pacific Stock Index Fund

 

Fund Profile

As of October 31, 2008

 

Portfolio Characteristics

 

 

 

 

Target

Broad

 

Fund

Index1

Index2

Number of Stocks

510

507

1,898

Turnover Rate

9%

Expense Ratio

 

 

 

(10/31/2007)3

 

Investor Shares

0.22%

 

 

Admiral Shares

0.12%

 

 

Signal Shares

0.12%

 

 

Institutional Shares

0.09%

 

 

ETF Shares

0.12%

 

 

Short-Term Reserves

–0.4%4

 

 

Sector Diversification (% of equity exposure)

 

 

Target

Broad

 

Fund

Index1

Index2

Consumer Discretionary

14.9%

14.9%

9.0%

Consumer Staples

6.6

6.7

9.9

Energy

2.1

2.1

12.0

Financials

26.4

26.1

21.4

Health Care

5.6

5.7

9.7

Industrials

14.9

14.9

10.0

Information Technology

9.2

9.2

9.1

Materials

9.9

9.8

7.4

Telecommunication

 

 

 

Services

3.9

4.0

6.0

Utilities

6.5

6.6

5.5

 

 

Volatility Measures5

 

 

Fund Versus

Fund Versus

 

Target Index1

Broad Index2

R-Squared

0.96

0.88

Beta

0.94

0.78

 

 

Ten Largest Holdings6 (% of total net assets)

 

 

 

Toyota Motor Corp.

automobile

 

 

manufacturers

4.1%

Mitsubishi UFJ

diversified

 

Financial Group

banks

2.5

BHP Billiton Ltd.

diversified metals

 

 

and mining

2.5

Takeda

 

 

Pharmaceutical Co. Ltd.

pharmaceuticals

1.6

Honda Motor Co., Ltd.

automobile

 

 

manufacturers

1.6

Canon, Inc.

office electronics

1.4

Commonwealth Bank

diversified

 

of Australia

banks

1.4

Tokyo Electric Power Co.

electric

1.3

Nintendo Co.

home entertainment

 

 

software

1.2

Matsushita Electric

consumer

 

Industrial Co., Ltd.

electronics

1.1

Top Ten

 

18.7%

 

 

Market Diversification (% of equity exposure)

 

 

Target

 

Fund

Index1

Japan

72.4%

72.2%

Australia

18.1

18.1

Hong Kong

6.1

6.2

Singapore

3.1

3.2

Other Pacific Countries

0.3

0.3

 

 

1 MSCI Pacific Index.

2 MSCI All Country World Index ex USA.

3 The expense ratios shown are from the prospectus dated August 29, 2008. For the fiscal year ended October 31, 2008, the expense ratios were 0.22% for Investor Shares, 0.12% for Admiral Shares, 0.12% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares.

4 The fund invested a portion of its cash reserves in equity markets through the use of index futures contracts. After the effect of the futures investments, the fund’s temporary cash position was negative.

5 For an explanation of R-squared, beta, and other terms used here, see the Glossary.

6 The holdings listed exclude any temporary cash investments and equity index products.

 

 

36

Pacific Stock Index Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

Cumulative Performance: October 31, 1998–October 31, 2008

Initial Investment of $10,000

 


 

 

 

Average Annual Total Returns

Final Value of

 

Periods Ended October 31, 2008

a $10,000

 

One Year

Five Years

Ten Years

Investment

Pacific Stock Index Fund Investor Shares1

–42.71%

2.17%

2.16%

$12,379

MSCI All Country World Index ex USA

–48.27

5.05

3.19

13,692

MSCI Pacific Index

–43.49

1.74

2.05

12,249

Average Japan/Pacific Region Fund2

–46.22

–0.73

1.62

11,739

 

 

 

 

 

 

Final Value of

 

 

 

Since

a $100,000

 

One Year

Five Years

Inception3

Investment

Pacific Stock Index Fund Admiral Shares1

–42.62%

2.29%

2.12%

$116,365

MSCI All Country World Index ex USA

–48.27

5.05

4.14

133,975

MSCI Pacific Index

–43.49

1.74

1.89

114,483

 

 

 

 

 

Final Value of

 

 

Since

a $10,000,000

 

One Year

Inception3

Investment

Pacific Stock Index Fund Signal Shares1

–42.61%

–29.86%

$6,067,631

MSCI All Country World Index ex USA

–48.27

–33.15

5,670,641

MSCI Pacific Index

–43.49

–31.06

5,921,269

 

 

1 Total returns do not reflect the 0.5% transaction fee on purchases through March 31, 2000; the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months; or, for the Investor Shares, the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Derived from data provided by Lipper Inc.

3 Performance for the fund and its comparative standards is calculated since the following inception dates: August 13, 2001, for the Admiral Shares and June 4, 2007, for the Signal Shares.

 

37

Pacific Stock Index Fund

 

 

 

 

 

 

Final Value of

 

 

 

Since

a $5,000,000

 

One Year

Five Years

Inception1

Investment

Pacific Stock Index Fund Institutional Shares2

–42.62%

2.34%

–2.37%

$4,083,198

MSCI All Country World Index ex USA

–48.27

5.05

–0.04

4,983,004

MSCI Pacific Index

–43.49

1.74

–2.58

4,008,333

 

 

 

 

 

Final Value of

 

 

Since

a $10,000

 

One Year

Inception1

Investment

Pacific Stock Index Fund ETF Shares Net Asset Value

–42.61%

–3.33%

$8,836

MSCI All Country World Index ex USA

–48.27

–2.35

9,168

MSCI Pacific Index

–43.49

–3.91

8,642

 

 

Cumulative Returns: ETF Shares, March 4, 2005–October 31, 2008

 

 

 

 

Since

 

One Year

Inception1

Pacific Stock Index Fund ETF Shares Market Price

–42.40%

–11.37%

Pacific Stock Index Fund ETF Shares Net Asset Value

–42.61

–11.64

MSCI Pacific Index

–43.49

–13.58

 

 

1 Performance for the fund and its comparative standards is calculated since the following inception dates: May 15, 2000, for the Institutional Shares and March 4, 2005, for the ETF Shares.

2 Total returns do not reflect the 0.5% transaction fee on purchases through March 31, 2000, or the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

 

 

38

Pacific Stock Index Fund

 

Fiscal-Year Total Returns (%): October 31, 1998–October 31, 2008

 


 

Average Annual Total Returns: Periods Ended September 30, 2008

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

Inception Date

One Year

Five Years

Ten Years

Pacific Stock Index Fund

 

 

 

 

Investor Shares1

6/18/1990

–27.28%

7.51%

5.96%

Admiral Shares1

8/13/2001

–27.24

7.60

5.092

Signal Shares1

6/4/2007

–27.25

–20.102

Institutional Shares1

5/15/2000

–27.21

7.67

0.002

ETF Shares

3/4/2005

 

 

 

Market Price

 

–27.11

2.292

Net Asset Value

 

–27.23

2.232

 

 

1 Total returns do not reflect the 0.5% transaction fee on purchases through March 31, 2000; the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months; or, for the Investor Shares, the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Returns since inception.

Note: See Financial Highlights tables for dividend and capital gains information.

 

 

39

Pacific Stock Index Fund

 

Financial Statements

 

Statement of Net Assets

As of October 31, 2008

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Common Stocks (98.6%)1

 

 

Australia (17.8%)

 

 

 

BHP Billiton Ltd.

11,162,872

214,452

 

Commonwealth Bank

 

 

 

of Australia

4,410,927

120,576

 

National Australia

 

 

 

Bank Ltd.

5,428,312

88,080

 

Westpac Banking

 

 

 

Corp., Ltd.

6,247,404

85,718

 

Woolworths Ltd.

4,048,458

75,470

 

Australia & New Zealand

 

 

 

Bank Group Ltd.

6,391,980

74,930

 

Westfield Group

5,833,414

64,428

 

QBE Insurance Group Ltd.

2,953,586

50,391

 

Rio Tinto Ltd.

950,429

49,168

 

CSL Ltd.

1,988,715

48,365

 

Woodside Petroleum Ltd.

1,602,649

45,283

 

Telstra Corp. Ltd.

14,485,690

39,873

 

St. George Bank Ltd.

1,866,177

34,915

 

Wesfarmers Ltd.

2,152,620

30,937

 

Origin Energy Ltd.

2,922,048

30,644

 

Brambles Ltd.

4,607,341

24,576

 

Foster’s Group Ltd.

6,391,148

24,432

 

AMP Ltd.

6,236,065

22,684

 

Newcrest Mining Ltd.

1,507,922

20,729

^

Macquarie Group, Ltd.

914,073

18,134

 

Santos Ltd.

1,980,538

17,932

 

Suncorp-Metway Ltd.

3,178,282

17,109

 

Insurance Australia

 

 

 

Group Ltd.

6,248,674

15,829

 

Orica Ltd.

1,179,578

15,333

 

AGL Energy Ltd.

1,475,591

13,857

 

Transurban Group

3,858,588

13,854

 

Stockland

4,879,110

13,120

 

Australian Stock

 

 

 

Exchange Ltd.

570,054

11,447

 

Incitec Pivot Ltd.

4,028,093

10,799

 

Amcor Ltd.

2,793,081

10,782

^

Macquarie

 

 

 

Infrastructure Group

7,980,147

10,460

 

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Coca-Cola Amatil Ltd.

1,836,061

9,911

 

Sonic Healthcare Ltd.

1,056,064

9,651

 

Computershare Ltd.

1,574,956

8,904

 

AXA Asia Pacific

 

 

 

Holdings Ltd.

2,822,087

8,325

*

Fortescue Metals

 

 

 

Group Ltd.

4,208,223

8,323

^

Leighton Holdings Ltd.

496,793

8,261

 

Toll Holdings Ltd.

2,054,543

8,202

 

Tabcorp Holdings Ltd.

1,740,641

7,980

 

Bendigo Bank Ltd.

893,457

7,882

 

CFS Gandel Retail Trust

5,670,183

7,627

 

BlueScope Steel Ltd.

2,519,947

7,412

 

GPT Group

14,580,048

7,296

 

Cochlear Ltd.

185,731

7,047

 

Wesfarmers, Ltd. Price

 

 

 

Protected Shares

479,522

6,922

 

Metcash Ltd.

2,551,563

6,887

 

Alumina Ltd.

4,829,064

6,872

 

Crown Ltd.

1,494,157

6,687

 

OneSteel Ltd.

2,765,418

6,353

 

Tatt’s Group, Ltd.

3,776,286

6,324

 

OZ Minerals Ltd.

9,830,228

6,175

^

Boral Ltd.

1,931,184

5,812

^

John Fairfax Holdings Ltd.

4,516,974

5,791

 

Lion Nathan Ltd.

978,258

5,781

 

Lend Lease Corp.

1,197,105

5,539

 

Macquarie

 

 

 

Goodman Group

8,275,273

5,221

 

Qantas Airways Ltd.

3,103,479

5,041

 

WorleyParsons Ltd.

499,635

5,020

 

Goodman Fielder Ltd.

4,389,078

4,871

 

Dexus Property Group

 

 

 

NPV

9,722,627

4,845

 

CSR Ltd.

3,272,099

4,756

 

Billabong International Ltd.

555,225

4,439

 

James Hardie Industries

 

 

 

NV

1,435,643

4,083

 

Macquarie Airports Group

2,291,884

3,259

 

Harvey Norman

 

 

 

Holdings Ltd.

1,754,107

3,028

 

 

40

Pacific Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

^

Perpetual Trustees

 

 

 

Australia Ltd.

124,537

2,900

 

Caltex Australia Ltd.

445,456

2,806

*

Paladin Resources Ltd.

1,820,943

2,790

 

Aristocrat Leisure Ltd.

1,078,578

2,716

 

Sims Group Ltd.

272,679

2,615

 

Asciano Group

1,863,017

2,603

 

Sims Group Ltd. ADR

235,750

2,315

 

Mirvac Group

3,468,260

2,270

 

Boart Longyear Group

4,773,956

1,385

 

Macquarie Office Trust

6,807,999

1,310

^

Babcock & Brown Ltd.

880,995

770

 

 

 

1,559,314

Hong Kong (6.1%)

 

 

 

CLP Holdings Ltd.

6,808,705

45,918

 

Cheung Kong

 

 

 

Holdings Ltd.

4,621,886

44,377

 

Sun Hung Kai

 

 

 

Properties Ltd.

4,691,324

41,101

 

Hutchison Whampoa Ltd.

7,090,095

38,314

 

Hong Kong Exchanges

 

 

 

& Clearing Ltd.

3,392,500

34,403

 

Hang Seng Bank Ltd.

2,543,666

31,739

 

Hong Kong Electric

 

 

 

Holdings Ltd.

4,614,050

24,869

 

Hong Kong & China

 

 

 

Gas Co., Ltd.

13,302,481

23,436

 

Esprit Holdings Ltd.

3,516,078

19,979

 

Swire Pacific Ltd.

 

 

 

A Shares

2,741,000

19,304

 

Hang Lung

 

 

 

Properties Ltd.

6,896,720

16,852

 

Li & Fung Ltd.

7,473,450

14,999

 

Boc Hong Kong

 

 

 

Holdings Ltd.

12,313,300

14,098

 

Henderson Land

 

 

 

Development Co. Ltd.

3,575,593

12,931

 

Link REIT

7,119,000

12,729

 

MTR Corp.

4,677,700

10,365

 

Bank of East Asia Ltd.

4,735,073

9,551

 

Hang Lung

 

 

 

Development Co., Ltd.

2,893,000

9,310

 

Wharf Holdings Ltd.

4,566,903

9,112

 

New World

 

 

 

Development Co., Ltd.

8,048,146

6,700

 

Hopewell Holdings Ltd.

2,080,800

6,469

 

Shangri-La Asia Ltd.

4,303,068

6,092

*

Hutchison

 

 

 

Telecommunications

 

 

 

International Ltd.

5,572,673

6,020

^

Cheung Kong

 

 

 

Infrastructure

 

 

 

Holdings Ltd.

1,505,600

5,515

 

Kerry Properties Ltd.

2,126,013

5,341

 

Sino Land Co.

5,637,400

4,956

^

Cathay Pacific Airways Ltd.

3,938,500

4,806

 

41

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

^,*

Mongolia Energy

 

 

 

Corp. Ltd.

11,071,000

4,749

 

PCCW Ltd.

12,350,769

4,622

 

Wheelock and Co. Ltd.

3,057,000

4,580

 

Yue Yuen Industrial

 

 

 

(Holdings) Ltd.

2,206,900

4,414

*

CITIC International

 

 

 

Financial Holdings Ltd.

6,705,000

4,239

 

Kingboard Chemical

 

 

 

Holdings Ltd.

1,824,500

3,642

 

Hysan Development

 

 

 

Co., Ltd.

1,898,811

2,977

 

Pacific Basin Shipping Ltd.

5,463,000

2,925

 

NWS Holdings Ltd.

2,697,000

2,815

 

Wing Hang Bank Ltd.

585,009

2,744

 

Television Broadcasts Ltd.

942,412

2,621

*

Foxconn International

 

 

 

Holdings Ltd.

6,969,238

2,564

*

Genting International PLC

9,557,000

2,357

 

Chinese Estates Holdings

3,032,000

2,330

^

ASM Pacific

 

 

 

Technology Ltd.

644,100

2,152

 

Hong Kong Aircraft &

 

 

 

Engineering Co., Ltd.

222,000

1,750

 

Lifestyle International

 

 

 

Holdings, Ltd.

2,267,000

1,513

 

Orient Overseas

 

 

 

International Ltd.

732,224

1,308

 

Shun Tak Holdings Ltd.

3,506,382

699

 

C C Land Holdings Ltd.

3,180,000

578

 

Lee & Man Paper

 

 

 

Manufacturing Ltd.

1,552,000

507

 

 

 

535,372

Japan (71.2%)

 

 

 

Toyota Motor Corp.

9,174,865

358,287

 

Mitsubishi UFJ

 

 

 

Financial Group

34,321,182

215,680

 

Takeda Pharmaceutical

 

 

 

Co. Ltd.

2,767,847

137,521

 

Honda Motor Co., Ltd.

5,492,672

136,577

 

Canon, Inc.

3,548,649

124,173

 

Tokyo Electric Power Co.

4,049,910

114,696

 

Nintendo Co.

329,820

105,974

 

Matsushita Electric

 

 

 

Industrial Co., Ltd.

6,119,563

98,548

 

Sumitomo Mitsui

 

 

 

Financial Group, Inc.

22,309

89,434

 

NTT DoCoMo, Inc.

52,236

82,844

 

East Japan Railway Co.

11,309

80,475

 

Seven and I Holdings

 

 

 

Co., Ltd.

2,863,140

80,391

 

Sony Corp.

3,340,964

79,182

 

Mizuho Financial

 

 

 

Group, Inc.

32,220

78,675

 

Mitsubishi Corp.

4,510,000

75,596

 

Pacific Stock Index Fund

 

 

 

Market

 

 

Value

 

Shares

($000)

Shin-Etsu Chemical

 

 

Co., Ltd.

1,365,400

72,578

Nippon Telegraph and

 

 

Telephone Corp.

17,278

70,507

Millea Holdings, Inc.

2,274,600

70,162

Mitsubishi Estate

 

 

Co., Ltd.

3,909,000

69,828

Astellas Pharma Inc.

1,639,898

66,053

Kansai Electric Power

 

 

Co., Inc.

2,561,700

64,235

KDDI Corp.

9,696

58,094

Chubu Electric Power Co.

2,202,400

57,670

Nippon Steel Corp.

16,981,343

57,158

Nomura Holdings Inc.

5,885,100

55,757

Mitsui & Co., Ltd.

5,753,600

55,750

Japan Tobacco, Inc.

14,968

53,102

Hitachi Ltd.

11,203,000

52,599

Kao Corp.

1,736,661

50,783

Mitsui Fudosan Co., Ltd.

2,785,557

48,589

Daiichi Sankyo Co., Ltd.

2,322,536

47,623

JFE Holdings, Inc.

1,737,200

44,325

Central Japan Railway Co.

5,215

42,839

Fanuc Co., Ltd.

637,300

42,462

Mitsubishi Electric Corp.

6,428,000

39,849

Fuji Photo Film Co., Ltd.

1,626,166

37,435

Nissan Motor Co., Ltd.

7,518,320

37,339

Toshiba Corp.

10,229,000

36,972

Bridgestone Corp.

2,028,359

35,462

Mitsui Sumitomo

 

 

Insurance Group

 

 

Holdings, Inc.

1,261,265

35,049

Mitsubishi Heavy

 

 

Industries Ltd.

10,660,000

34,180

Tokyo Gas Co., Ltd.

7,751,000

33,329

Sumitomo Corp.

3,743,756

32,938

Sumitomo Metal

 

 

Industries Ltd.

12,788,000

32,890

Komatsu Ltd.

2,989,768

32,868

Tohoku Electric Power Co.

1,421,800

31,936

Kyocera Corp.

540,900

31,772

Denso Corp.

1,617,300

31,522

Orix Corp.

306,656

31,507

Kirin Brewery Co., Ltd.

2,620,048

28,978

Kyushu Electric

 

 

Power Co., Inc.

1,261,800

28,927

Eisai Co., Ltd.

838,500

27,205

Secom Co., Ltd.

698,300

26,635

Itochu Corp.

5,008,000

26,466

Hoya Corp.

1,374,594

25,100

Daiwa Securities

 

 

Group Inc.

4,438,850

25,095

T & D Holdings, Inc.

655,460

25,039

West Japan Railway Co.

5,654

24,881

Softbank Corp.

2,508,518

24,702

Murata

 

 

Manufacturing Co., Ltd.

711,755

24,530

 

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Fujitsu Ltd.

6,197,000

24,365

 

Keyence Corp.

125,319

24,015

 

Ricoh Co.

2,230,386

24,003

 

Sharp Corp.

3,325,000

23,731

 

Dai-Nippon

 

 

 

Printing Co., Ltd.

1,980,741

23,403

 

Terumo Corp.

561,159

23,387

 

Osaka Gas Co., Ltd.

6,461,000

22,854

 

Shiseido Co., Ltd.

1,090,524

22,438

 

Chugoku Electric

 

 

 

Power Co., Ltd.

925,690

22,405

 

Sumitomo Trust &

 

 

 

Banking Co., Ltd.

4,736,388

21,935

 

Marubeni Corp.

5,492,000

21,337

 

Asahi Breweries Ltd.

1,286,800

21,240

 

Asahi Glass Co., Ltd.

3,355,200

21,083

^

Kintetsu Corp.

5,407,150

20,697

 

Sumitomo Realty &

 

 

 

Development Co.

1,266,572

20,636

^

Toray Industries, Inc.

4,428,740

20,564

 

Aeon Co., Ltd.

2,129,900

20,424

 

Sumitomo Electric

 

 

 

Industries Ltd.

2,494,700

20,198

 

Bank of Yokohama Ltd.

4,104,000

19,906

 

Mitsui OSK Lines Ltd.

3,812,000

19,906

 

Daikin Industries Ltd.

877,489

19,737

 

Sompo Japan

 

 

 

Insurance Inc.

2,793,000

19,577

 

Nidec Corp.

361,800

19,459

 

Ajinomoto Co., Inc.

2,212,000

19,099

 

Tokyo Electron Ltd.

570,730

19,030

 

NEC Corp.

6,413,812

19,015

 

Hankyu Corp.

4,017,958

18,954

 

Kubota Corp.

3,636,000

18,250

 

SMC Corp.

191,277

18,057

 

Nippon Oil Corp.

4,384,479

17,997

^

Resona Holdings Inc.

17,066

17,896

 

Nippon Yusen Kabushiki

 

 

 

Kaisha Co.

3,683,000

17,810

 

Shikoku Electric Power

606,388

17,794

 

Shizuoka Bank Ltd.

2,009,000

17,743

 

Suzuki Motor Corp.

1,174,457

17,234

 

Mitsubishi Chemical

 

 

 

Holdings Corp.

4,259,000

17,218

 

Fast Retailing Co., Ltd.

158,900

16,940

 

Shionogi & Co., Ltd.

993,362

16,907

^

Yahoo Japan Corp.

50,312

16,648

^,*

Mitsubishi Motors Corp.

11,977,620

16,559

 

Office Building Fund of

 

 

 

Japan Inc.

1,715

16,479

 

Rohm Co., Ltd.

336,200

16,200

 

Sumitomo Chemical Co.

5,233,000

16,010

 

Inpex Holdings, Inc.

2,750

15,965

 

Nikon Corp.

1,128,718

15,907

 

Yamada Denki Co., Ltd.

288,676

15,713

 

42

Pacific Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Hokuriku Electric

 

 

 

Power Co.

586,432

15,454

 

Odakyu Electric

 

 

 

Railway Co.

2,085,000

15,288

 

Daiwa House

 

 

 

Industry Co., Ltd.

1,698,000

15,095

 

Asahi Kasei Corp.

3,968,000

14,925

 

Tokyu Corp.

3,785,000

14,870

^

Olympus Corp.

768,464

14,810

 

Sekisui House Ltd.

1,465,858

14,699

 

Hokkaido Electric

 

 

 

Power Co., Ltd.

644,761

14,458

 

Ono Pharmaceutical

 

 

 

Co., Ltd.

321,773

14,344

 

Yamato Holdings Co., Ltd.

1,295,000

14,306

 

Kobe Steel Ltd.

8,816,095

14,300

 

NTT Data Corp.

4,203

13,887

 

TDK Corp.

409,800

13,847

 

Sumitomo Metal

 

 

 

Mining Co.

1,840,000

13,799

 

Tobu Railway Co., Ltd.

2,716,000

13,799

 

Toyoda Automatic

 

 

 

Loom Works Ltd.

596,800

13,473

 

Electric Power

 

 

 

Development Co., Ltd.

443,640

13,208

 

Nipponkoa Insurance

 

 

 

Co., Ltd.

2,176,193

13,043

 

Mitsui Trust Holding Inc.

3,279,400

12,938

 

Toppan Printing Co., Ltd.

1,747,000

12,846

 

Chiba Bank Ltd.

2,536,000

12,535

 

Japan Real Estate

 

 

 

Investment Corp.

1,397

12,371

^

Oriental Land Co., Ltd.

174,300

12,360

 

Nitto Denko Corp.

550,100

12,183

 

JS Group Corp.

886,208

11,476

 

Lawson Inc.

232,300

11,354

 

Daito Trust

 

 

 

Construction Co., Ltd.

268,384

11,322

 

Aisin Seiki Co., Ltd.

638,238

11,294

^

Keihin Electric Express

 

 

 

Railway Co., Ltd.

1,427,000

11,014

 

Joyo Bank Ltd.

2,330,000

10,961

 

Matsushita Electric

 

 

 

Works, Ltd.

1,252,000

10,927

 

OJI Paper Co., Ltd.

2,836,740

10,831

^

Rakuten, Inc.

21,793

10,804

 

Bank of Kyoto Ltd.

1,025,000

10,782

 

Nippon Express Co., Ltd.

2,655,000

10,716

^

Dentsu Inc.

6,488

10,646

 

Chugai Pharmaceutical

 

 

 

Co., Ltd.

745,900

10,608

 

Konica Minolta

 

 

 

Holdings, Inc.

1,595,000

10,475

 

Benesse Corp.

248,157

10,423

*

Isetan Mitsukoshi

 

 

 

Holdings Ltd.

1,098,480

10,347

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Keio Electric

 

 

 

Railway Co., Ltd.

1,929,000

9,989

 

Ohbayashi Corp.

2,035,000

9,957

 

Uni-Charm Corp.

138,000

9,898

 

Omron Corp.

677,500

9,673

 

Shimizu Corp.

1,962,000

9,627

 

Sony Financial

 

 

 

Holdings, Inc.

2,887

9,389

 

Hisamitsu

 

 

 

Pharmaceutical Co. Inc.

222,145

9,259

 

Hirose Electric Co., Ltd.

106,300

9,205

 

Toho Gas Co., Ltd.

1,579,297

9,116

 

Kawasaki Heavy

 

 

 

Industries Ltd.

4,984,000

9,030

 

Nippon Mining

 

 

 

Holdings Inc.

2,942,000

9,006

 

Kuraray Co., Ltd.

1,143,000

8,747

 

NGK Insulators Ltd.

839,534

8,720

 

The Iyo Bank, Ltd.

806,331

8,699

 

Mitsubishi

 

 

 

Materials Corp.

3,840,000

8,671

 

Kurita Water

 

 

 

Industries Ltd.

376,200

8,583

 

Trend Micro Inc.

348,500

8,525

 

Fukuoka Financial

 

 

 

Group, Inc.

2,567,600

8,492

*

Sanyo Electric Co., Ltd.

5,589,000

8,483

 

Ibiden Co., Ltd.

450,139

8,421

 

Sekisui Chemical Co.

1,432,000

8,367

 

Nippon Meat Packers, Inc.

607,000

8,326

 

Nitori Co., Ltd.

132,568

8,306

 

Japan Steel Works Ltd.

1,170,832

8,294

^

All Nippon Airways

 

 

 

Co., Ltd.

2,147,000

8,199

 

Kajima Corp.

2,806,000

8,116

^

Yakult Honsha Co., Ltd.

320,900

7,997

 

Kawasaki Kisen

 

 

 

Kaisha Ltd.

2,013,000

7,975

^

Nippon Paper Group, Inc.

2,980

7,964

 

TonenGeneral Sekiyu K.K.

938,000

7,934

 

Sankyo Co., Ltd.

178,100

7,924

 

Shinsei Bank, Ltd.

5,125,046

7,861

 

Nissin Food

 

 

 

Products Co., Ltd.

274,800

7,855

 

Tanabe Seiyaku Co., Ltd.

746,000

7,851

 

JGC Corp.

730,000

7,826

 

Hokuhoku Financial

 

 

 

Group, Inc.

3,923,400

7,764

 

FamilyMart Co., Ltd.

195,200

7,734

 

Taisho Pharmaceutical Co.

428,000

7,709

 

Teijin Ltd.

2,940,000

7,646

 

Toyo Suisan Kaisha, Ltd.

296,000

7,632

 

Takashimaya Co.

987,972

7,614

 

J. Front Retailing Co., Ltd.

1,690,400

7,538

 

The Chugoku Bank, Ltd.

542,439

7,462

 

Isuzu Motors Ltd.

4,245,728

7,459

 

43

Pacific Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Makita Corp.

406,000

7,362

 

Yamaha Motor Co., Ltd.

665,000

7,352

 

Taisei Corp.

3,190,000

7,352

 

Mitsui Chemicals, Inc.

2,102,000

7,339

 

Kyowa Hakko Kogyo Co.

861,589

7,180

 

Toho Co., Ltd.

376,100

7,170

^

Advantest Corp.

496,436

7,133

 

Ube Industries Ltd.

3,367,000

7,084

 

The Suruga Bank, Ltd.

747,000

7,032

 

Namco Bandai

 

 

 

Holdings Inc.

682,100

7,014

 

The Hachijuni Bank Ltd.

1,427,550

7,005

 

Nippon Electric

 

 

 

Glass Co., Ltd.

1,155,097

6,948

 

Kamigumi Co., Ltd.

864,000

6,874

 

Fuji Heavy Industries Ltd.

1,947,189

6,850

 

Toyota Tsusho Corp.

709,704

6,849

 

Sojitz Holdings Corp.

4,088,900

6,833

^,*

Japan Airlines

 

 

 

System Co.

2,991,000

6,806

 

Mazda Motor Corp.

3,056,422

6,779

 

Yamaguchi Financial

 

 

 

Group, Inc.

704,473

6,738

 

Gunma Bank Ltd.

1,314,000

6,709

 

JSR Corp.

594,100

6,701

 

SBI Holdings, Inc.

55,575

6,669

 

Toyo Seikan Kaisha Ltd.

538,800

6,647

 

Nippon Sheet Glass

 

 

 

Co., Ltd.

1,999,000

6,538

 

Shimano, Inc.

222,900

6,376

 

Furukawa Electric Co.

2,109,000

6,371

 

Seiko Epson Corp.

423,300

6,357

 

Nisshin Seifun Group Inc.

584,600

6,338

 

Santen Pharmaceutical

 

 

 

Co., Ltd.

246,300

6,299

 

Stanley Electric Co.

499,100

6,275

 

Aioi Insurance Co., Ltd.

1,504,000

6,176

 

The Hiroshima Bank, Ltd.

1,657,650

6,160

 

Nomura Research

 

 

 

Institute, Ltd.

372,580

6,152

 

Acom Co., Ltd.

159,290

6,085

 

Toto Ltd.

867,000

6,050

 

Konami Corp.

333,149

6,027

 

Showa Denko K.K.

3,933,000

5,974

 

NSK Ltd.

1,463,000

5,971

 

Citizen Watch Co., Ltd.

1,072,200

5,933

 

Nippon Sanso Corp.

942,000

5,924

 

Mizuho Trust &

 

 

 

Banking Co., Ltd.

5,028,950

5,910

 

Credit Saison Co., Ltd.

541,852

5,750

 

Shimadzu Corp.

833,787

5,705

 

Sumitomo Heavy

 

 

 

Industries Ltd.

1,909,000

5,667

 

Yamaha Corp.

582,200

5,642

 

Amada Co., Ltd.

1,211,000

5,561

 

THK Co., Inc.

401,700

5,501

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

^

Oracle Corp. Japan

126,500

5,499

 

Jupiter

 

 

 

Telecommunications

 

 

 

Co., Ltd.

8,045

5,432

 

77 Bank Ltd.

1,151,000

5,423

 

NGK Spark Plug Co.

574,682

5,417

 

IHI Corp.

4,404,000

5,343

 

Brother Industries Ltd.

782,362

5,337

 

Yamazaki Baking Co., Ltd.

401,000

5,328

 

Kikkoman Corp.

527,000

5,314

 

Ushio Inc.

393,300

5,313

 

Square Enix Co., Ltd.

210,000

5,291

 

Mediceo Paltac

 

 

 

Holdings Co., Ltd.

487,361

5,281

 

NTN Corp.

1,412,000

5,262

 

AEON Mall Co., Ltd.

210,300

5,191

 

The Nishi-Nippon

 

 

 

City Bank, Ltd.

2,375,307

5,175

 

Nomura Real Estate

 

 

 

Office Fund, Inc.

910

5,174

 

Marui Co., Ltd.

845,400

5,168

 

Showa Shell Sekiyu K.K.

628,400

5,134

 

Casio Computer Co.

786,500

5,052

 

Shimamura Co., Ltd.

72,900

5,050

 

Sumitomo Rubber

 

 

 

Industries Ltd.

569,600

5,025

 

Susuken Co., Ltd.

233,720

4,994

 

USS Co., Ltd.

81,210

4,974

 

JTEKT Corp.

641,123

4,919

 

Mitsubishi Gas

 

 

 

Chemical Co.

1,291,000

4,750

 

Daihatsu Motor Co., Ltd.

637,507

4,720

^

Sapporo Holdings Ltd.

856,000

4,709

^

Sumco Corp.

430,116

4,658

 

Uny Co., Ltd.

594,000

4,629

 

Mitsubishi UFJ Lease &

 

 

 

Finance Company Ltd.

192,680

4,614

 

Kaneka Corp.

987,982

4,610

 

Sega Sammy Holdings Inc.

608,532

4,600

 

Keisei Electric

 

 

 

Railway Co., Ltd.

921,000

4,522

 

Shinko Securities

 

 

 

Co., Ltd.

1,753,000

4,347

 

Sapporo Hokuyo

 

 

 

Holdings, Inc.

1,001

4,317

 

Alfresa Holdings Corp.

99,000

4,306

 

Idemitsu Kosan Co. Ltd.

73,047

4,259

 

Tokyu Land Corp.

1,499,000

4,242

 

Dai Nippon

 

 

 

Pharmaceutical Co., Ltd.

531,000

4,195

 

Japan Retail Fund

 

 

 

Investment Corp.

1,158

4,182

^

Hitachi Construction

 

 

 

Machinery Co.

356,778

4,142

 

Hitachi Metals Ltd.

546,320

4,108

 

Kansai Paint Co., Ltd.

722,000

4,030

 

44

Pacific Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Meiji Dairies Corp.

882,000

4,023

 

NTT Urban

 

 

 

Development Corp.

3,853

3,953

 

Mabuchi Motor Co.

99,800

3,948

 

Nissan Chemical

 

 

 

Industries, Ltd.

485,000

3,922

 

Cosmo Oil Co., Ltd.

1,839,000

3,912

 

Haseko Corp.

4,313,655

3,904

^

Mitsubishi Rayon Co., Ltd.

1,803,000

3,871

 

Canon Sales Co. Inc.

225,300

3,769

 

Hitachi High-

 

 

 

Technologies Corp.

230,575

3,740

 

Tokuyama Corp.

737,000

3,732

 

Coca-Cola West

 

 

 

Japan Co., Ltd.

185,700

3,724

 

Tokyo Tatemono Co., Ltd.

902,000

3,716

 

Kinden Corp.

441,000

3,682

 

Japan Petroleum

 

 

 

Exploration Co., Ltd.

95,485

3,637

 

Mitsumi Electric Co., Ltd.

276,500

3,637

^

Promise Co., Ltd.

201,950

3,625

 

Denki Kagaku Kogyo K.K.

1,610,000

3,567

 

Hitachi Chemical Co., Ltd.

348,400

3,560

 

NOK Corp.

373,700

3,558

 

Hakuhodo DY Holdings Inc.

77,830

3,544

 

Yaskawa Electric Corp.

803,380

3,526

 

Yokogawa Electric Corp.

755,197

3,497

 

Taiheiyo Cement Corp.

3,000,000

3,492

 

Mitsui Mining &

 

 

 

Smelting Co., Ltd.

1,906,000

3,486

 

Mitsubishi Logistics Corp.

380,000

3,457

^

Nomura Real Estate

 

 

 

Holdings Inc.

173,200

3,393

^

Ito En, Ltd.

212,400

3,383

 

Tosoh Corp.

1,691,000

3,372

 

Nisshin Steel Co.

2,498,000

3,345

 

Asics Corp.

530,139

3,322

 

Japan Prime Realty

 

 

 

Investment Corp.

1,859

3,303

^

Mitsui Engineering &

 

 

 

Shipbuilding Co., Ltd.

2,350,000

3,288

 

Daicel Chemical

 

 

 

Industries Ltd.

910,000

3,281

 

Minebea Co., Ltd.

1,193,000

3,220

 

Dai-Nippon Ink &

 

 

 

Chemicals, Inc.

1,987,000

3,212

 

Daido Steel Co., Ltd.

1,006,000

3,189

 

Leopalace21 Corp.

425,300

3,166

 

Alps Electric Co., Ltd.

573,900

3,157

 

Onward Kashiyama

 

 

 

Co., Ltd.

430,000

3,145

 

Yamato Kogyo Co., Ltd.

131,900

3,117

 

Toyoda Gosei Co., Ltd.

217,900

3,059

 

JAFCO Co., Ltd.

112,000

3,015

^

Takefuji Corp.

367,260

2,953

 

Maruichi Steel Tube Ltd.

124,800

2,839

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Obic Co., Ltd.

23,110

2,829

 

Tokyo Steel

 

 

 

Manufacturing Co.

359,800

2,779

 

Aeon Credit Service

 

 

 

Co. Ltd.

260,790

2,778

 

Dowa Mining Co., Ltd.

908,000

2,737

 

Fuji Electric Holdings

 

 

 

Co., Ltd.

1,872,000

2,731

 

Otsuka Corp.

52,464

2,639

 

Nisshinbo Industries, Inc.

447,000

2,598

^

Itochu

 

 

 

Techno-Science Corp.

100,100

2,346

 

Tokyo Broadcasting

 

 

 

System, Inc.

127,900

2,266

^,*

DeNA Co., Ltd.

963

2,155

 

NHK Spring Co.

527,000

2,124

 

Okuma Corp.

476,711

2,096

 

Hino Motors, Ltd.

869,000

2,008

 

CSK Corp.

237,400

1,984

 

Toyota Boshoku Corp.

217,900

1,944

^,*

Elpida Memory Inc.

363,600

1,938

 

Fuji Television

 

 

 

Network, Inc.

1,580

1,892

 

Aozora Bank, Ltd.

2,165,000

1,808

 

Tokai Rika Co., Ltd.

172,724

1,747

^

Osaka Titanium

 

 

 

Technologies Co.

61,726

1,610

^

Pioneer Corp.

517,400

1,535

 

Shinko Electric

 

 

 

Industries Co., Ltd.

224,753

1,449

 

Hikari Tsushin, Inc.

87,700

1,309

^,*

NEC Electronics Corp.

123,200

1,241

^

Toho Titanium Co., Ltd.

103,142

1,206

^

Aiful Corp.

252,400

1,170

*

Dowa Mining Co., Ltd.

 

 

 

Rights Exp. 1/29/10

425,000

62

 

 

 

6,230,585

New Zealand (0.3%)

 

 

 

Telecom Corp. of

 

 

 

New Zealand Ltd.

6,067,847

8,225

 

Fletcher Building Ltd.

1,669,131

5,668

 

Contact Energy Ltd.

963,459

4,085

 

Auckland International

 

 

 

Airport Ltd.

3,257,122

3,486

 

Sky City Entertainment

 

 

 

Group Ltd.

1,599,910

3,088

 

 

 

24,552

Singapore (3.2%)

 

 

 

Singapore

 

 

 

Telecommunications

 

 

 

Ltd.

26,478,290

44,561

 

United Overseas Bank

 

 

 

Ltd.

4,054,567

36,656

 

DBS Group Holdings Ltd.

3,792,161

28,947

 

Oversea-Chinese Banking

 

 

 

Corp., Ltd.

8,319,068

28,126

 

45

Pacific Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Singapore Airlines Ltd.

1,778,010

13,622

 

Keppel Corp., Ltd.

4,239,500

13,217

 

Capitaland Ltd.

5,644,895

11,313

 

Singapore Press

 

 

 

Holdings Ltd.

5,041,833

11,014

 

Singapore Exchange Ltd.

2,846,318

10,188

 

City Developments Ltd.

1,659,412

7,338

 

Singapore Technologies

 

 

 

Engineering Ltd.

4,471,407

7,060

 

Fraser & Neave Ltd.

3,224,500

6,084

 

Sembcorp Industries Ltd.

3,257,393

5,475

 

ComfortDelGro Corp. Ltd.

6,275,586

5,148

 

CapitaMall Trust

3,879,148

5,144

 

Wilmar International Ltd.

2,768,000

4,787

 

Noble Group Ltd.

5,244,600

3,818

 

Ascendas REIT

3,310,000

3,683

 

Olam International Ltd.

3,981,100

3,504

 

SembCorp Marine Ltd.

2,730,800

3,394

 

Parkway Holdings Ltd.

2,986,705

3,202

 

Jardine Cycle N

 

 

 

Carriage Ltd.

468,128

3,003

 

Venture Corp. Ltd.

730,250

2,669

 

United Overseas

 

 

 

Land Ltd.

1,731,556

2,267

 

Capitacommercial Trust

3,238,365

2,225

 

Golden

 

 

 

Agri-Resources Ltd.

16,432,000

2,193

 

Cosco Corp.

 

 

 

Singapore Ltd.

2,951,000

1,615

 

Keppel Land Ltd.

1,194,000

1,535

 

Neptune Orient Lines Ltd.

1,712,000

1,446

 

Yanlord Land Group Ltd.

1,483,000

761

 

 

 

273,995

Total Common Stocks

 

 

(Cost $12,257,290)

 

8,623,818

Temporary Cash Investments (3.0%)1

 

 

Money Market Fund (2.7%)

 

 

2,3

Vanguard Market

 

 

 

Liquidity Fund,

 

 

 

1.701%

233,905,019

233,905

 

 

 

Face

Market

 

 

Amount

Value

 

 

($000)

($000)

U.S. Agency Obligations (0.3%)

 

4,5

Federal Home

 

 

 

Loan Bank,

 

 

 

2.674%, 2/27/09

2,000

1,984

4,5

Federal Home Loan

 

 

 

Mortgage Corp.,

 

 

 

1.912%, 2/27/09

2,500

2,481

4

Federal National

 

 

 

Mortgage Assn.,

 

 

 

2.464%, 11/5/08

15,000

14,998

4,5

Federal National

 

 

 

Mortgage Assn.,

 

 

 

2.585%, 11/17/08

10,000

9,993

 

 

 

29,456

Total Temporary Cash Investments

 

(Cost $263,357)

 

263,361

Total Investments (101.6%)

 

 

(Cost $12,520,647)

 

8,887,179

Other Assets and Liabilites (–1.6%)

 

Other Assets

 

110,944

Liabilities3

 

(250,869)

 

 

 

(139,925)

Net Assets (100%)

 

8,747,254

 

 

46

Pacific Stock Index Fund

 

 

At October 31, 2008, net assets consisted of:

 

Amount

 

($000)

Paid-in Capital

12,919,869

Undistributed Net Investment Income

100,521

Accumulated Net Realized Losses

(615,831)

Unrealized Appreciation (Depreciation)

 

Investment Securities

(3,633,468)

Futures Contracts

(25,432)

Foreign Currencies and Forward

 

Currency Contracts

1,595

Net Assets

8,747,254

 

 

Investor Shares—Net Assets

 

Applicable to 637,638,547 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

5,064,602

Net Asset Value Per Share—

 

Investor Shares

$7.94

 

 

Admiral Shares—Net Assets

 

Applicable to 14,151,536 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

736,509

Net Asset Value Per Share—

 

Admiral Shares

$52.04

 

 

Signal Shares—Net Assets

 

Applicable to 8,285,921 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

149,792

Net Asset Value Per Share—

 

Signal Shares

$18.08

 

 

 

Amount

 

($000)

Institutional Shares—Net Assets

 

Applicable to 202,207,192 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

1,610,027

Net Asset Value Per Share—

 

Institutional Shares

$7.96

 

 

ETF Shares—Net Assets

 

Applicable to 28,180,618 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

1,186,324

Net Asset Value Per Share—

 

ETF Shares

$42.10

 

 

See Note A in Notes to Financial Statements.

^

Part of security position is on loan to broker-dealers. The total value of securities on loan is $163,674,000.

*

Non-income-producing security.

1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 100.0% and 1.6%, respectively, of net assets.

2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

3 Includes $176,426,000 of collateral received for securities on loan.

4 The issuer operates under a congressional charter; its securities are neither issued nor guaranteed by the U.S. government.

5 Securities with a value of $14,458,000 have been segregated as initial margin for open futures contracts.

ADR—American Depositary Receipt.

REIT—Real Estate Investment Trust.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

47

Pacific Stock Index Fund

 

Statement of Operations

 

 

Year Ended

 

October 31, 2008

 

($000)

Investment Income

 

Income

 

Dividends1

361,276

Interest2

2,723

Security Lending

6,738

Total Income

370,737

Expenses

 

The Vanguard Group—Note B

 

Investment Advisory Services

390

Management and Administrative—Investor Shares

15,864

Management and Administrative—Admiral Shares

839

Management and Administrative—Signal Shares

182

Management and Administrative—Institutional Shares

873

Management and Administrative—ETF Shares

870

Marketing and Distribution—Investor Shares

2,713

Marketing and Distribution—Admiral Shares

231

Marketing and Distribution—Signal Shares

42

Marketing and Distribution—Institutional Shares

620

Marketing and Distribution—ETF Shares

400

Custodian Fees

2,854

Auditing Fees

39

Shareholders’ Reports—Investor Shares

162

Shareholders’ Reports—Admiral Shares

8

Shareholders’ Reports—Signal Shares

3

Shareholders’ Reports—Institutional Shares

1

Shareholders’ Reports—ETF Shares

60

Trustees’ Fees and Expenses

19

Total Expenses

26,170

Net Investment Income

344,567

Realized Net Gain (Loss)

 

Investment Securities Sold

625,715

Futures Contracts

(27,279)

Foreign Currencies and Forward Currency Contracts

(1,132)

Realized Net Gain (Loss)

597,304

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities

(7,978,294)

Futures Contracts

(28,896)

Foreign Currencies and Forward Currency Contracts

811

Change in Unrealized Appreciation (Depreciation)

(8,006,379)

Net Increase (Decrease) in Net Assets Resulting from Operations

(7,064,508)

 

 

1 Dividends are net of foreign withholding taxes of $16,172,000.

2 Interest income from an affiliated company of the fund was $2,397,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

48

Pacific Stock Index Fund

 

Statement of Changes in Net Assets

 

 

Year Ended October 31,

 

2008

2007

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

344,567

260,891

Realized Net Gain (Loss)

597,304

30,327

Change in Unrealized Appreciation (Depreciation)

(8,006,379)

2,252,375

Net Increase (Decrease) in Net Assets Resulting from Operations

(7,064,508)

2,543,593

Distributions

 

 

Net Investment Income

 

 

Investor Shares

(247,822)

(176,611)

Admiral Shares

(29,349)

(25,966)

Signal Shares

(6,128)

Institutional Shares

(59,339)

(42,679)

ETF Shares

(34,784)

(18,129)

Realized Capital Gain

 

 

Investor Shares

Admiral Shares

Signal Shares

Institutional Shares

ETF Shares

Total Distributions

(377,422)

(263,385)

Capital Share Transactions

 

 

Investor Shares

(1,532,226)

1,937,377

Admiral Shares

34,355

(42,070)

Signal Shares

31,639

242,515

Institutional Shares

93,372

573,669

ETF Shares

519,132

628,365

Net Increase (Decrease) from Capital Share Transactions

(853,728)

3,339,856

Total Increase (Decrease)

(8,295,658)

5,620,064

Net Assets

 

 

Beginning of Period

17,042,912

11,422,848

End of Period1

8,747,254

17,042,912

 

 

1 Net Assets—End of Period includes undistributed net investment income of $100,521,000 and $131,063,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

49

Pacific Stock Index Fund

 

Financial Highlights

 

Investor Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$14.19

$12.13

$10.39

$8.63

$7.80

Investment Operations

 

 

 

 

 

Net Investment Income

.281

.236

.190

.156

.121

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(6.228)

2.091

1.710

1.761

.814

Total from Investment Operations

(5.947)

2.327

1.900

1.917

.935

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.303)

(.267)

(.160)

(.157)

(.105)

Distributions from Realized Capital Gains

Total Distributions

(.303)

(.267)

(.160)

(.157)

(.105)

Net Asset Value, End of Period

$7.94

$14.19

$12.13

$10.39

$8.63

 

 

 

 

 

 

Total Return1

–42.71%

19.52%

18.39%

22.48%

12.15%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$5,065

$11,281

$7,814

$5,202

$3,471

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.22%

0.22%

0.27%

0.32%

0.34%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

2.32%

1.80%

1.73%

1.76%

1.57%

Portfolio Turnover Rate2

9%

3%

2%

7%

3%

 

 

1 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

50

Pacific Stock Index Fund

 

Financial Highlights

 

Admiral Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$92.94

$79.43

$68.05

$56.47

$51.05

Investment Operations

 

 

 

 

 

Net Investment Income

1.933

1.613

1.302

1.069

.835

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(40.773)

13.714

11.185

11.583

5.318

Total from Investment Operations

(38.840)

15.327

12.487

12.652

6.153

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(2.060)

(1.817)

(1.107)

(1.072)

(.733)

Distributions from Realized Capital Gains

Total Distributions

(2.060)

(1.817)

(1.107)

(1.072)

(.733)

Net Asset Value, End of Period

$52.04

$92.94

$79.43

$68.05

$56.47

 

 

 

 

 

 

Total Return1

–42.62%

19.64%

18.46%

22.68%

12.23%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$737

$1,292

$1,128

$720

$314

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.12%

0.12%

0.17%

0.20%

0.25%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

2.42%

1.90%

1.83%

1.90%

1.69%

Portfolio Turnover Rate2

9%

3%

2%

7%

3%

 

 

1 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

51

Pacific Stock Index Fund

 

Financial Highlights

 

Signal Shares

 

 

 

Year

June 4,

 

Ended

20071 to

 

Oct. 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

Net Asset Value, Beginning of Period

$32.28

$30.53

Investment Operations

 

 

Net Investment Income

.667

.250

Net Realized and Unrealized Gain (Loss) on Investments

(14.158)

1.500

Total from Investment Operations

(13.491)

1.750

Distributions

 

 

Dividends from Net Investment Income

(.709)

Distributions from Realized Capital Gains

Total Distributions

(.709)

Net Asset Value, End of Period

$18.08

$32.28

 

 

 

Total Return2

–42.61%

5.73%

 

 

 

Ratios/Supplemental Data

 

 

Net Assets, End of Period (Millions)

$150

$247

Ratio of Total Expenses to Average Net Assets

0.12%

0.12%3

Ratio of Net Investment Income to Average Net Assets

2.42%

1.90%3

Portfolio Turnover Rate4

9%

3%

 

 

1 Inception.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares held for less than two months.

3 Annualized.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

52

Pacific Stock Index Fund

 

Financial Highlights

 

Institutional Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$14.22

$12.15

$10.41

$8.64

$7.81

Investment Operations

 

 

 

 

 

Net Investment Income

.300

.251

.206

.180

.134

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(6.242)

2.102

1.710

1.760

.814

Total from Investment Operations

(5.942)

2.353

1.916

1.940

.948

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.318)

(.283)

(.176)

(.170)

(.118)

Distributions from Realized Capital Gains

Total Distributions

(.318)

(.283)

(.176)

(.170)

(.118)

Net Asset Value, End of Period

$7.96

$14.22

$12.15

$10.41

$8.64

 

 

 

 

 

 

Total Return1

–42.62%

19.72%

18.52%

22.74%

12.32%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$1,610

$2,720

$1,788

$1,280

$754

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.09%

0.09%

0.12%

0.14%

0.17%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

2.45%

1.93%

1.88%

1.95%

1.76%

Portfolio Turnover Rate2

9%

3%

2%

7%

3%

 

 

1 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

53

Pacific Stock Index Fund

 

Financial Highlights

 

ETF Shares

 

 

 

 

 

 

 

 

March 4,

 

 

 

 

20051 to

 

Year Ended October 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

2006

2005

Net Asset Value, Beginning of Period

$75.17

$64.24

$55.09

$50.71

Investment Operations

 

 

 

 

Net Investment Income

1.573

1.314

1.060

.750

Net Realized and Unrealized Gain (Loss) on Investments

(32.974)

11.089

9.020

3.630

Total from Investment Operations

(31.401)

12.403

10.080

4.380

Distributions

 

 

 

 

Dividends from Net Investment Income

(1.669)

(1.473)

(.930)

Distributions from Realized Capital Gains

Total Distributions

(1.669)

(1.473)

(.930)

Net Asset Value, End of Period

$42.10

$75.17

$64.24

$55.09

 

 

 

 

 

Total Return

–42.61%

19.65%

18.43%

8.64%

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

Net Assets, End of Period (Millions)

$1,186

$1,503

$693

$164

Ratio of Total Expenses to Average Net Assets

0.11%

0.12%

0.18%

0.18%2

Ratio of Net Investment Income to Average Net Assets

2.43%

1.90%

1.82%

1.89%2

Portfolio Turnover Rate3

9%

3%

2%

7%

 

 

1 Inception.

2 Annualized.

3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

54

Pacific Stock Index Fund

 

Notes to Financial Statements

 

Vanguard Pacific Stock Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. The fund offers five classes of shares: Investor Shares, Admiral Shares, Signal Shares, Institutional Shares, and ETF Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, tenure, and account-size criteria. Signal Shares are designed for institutional investors who meet certain administrative, service, and account-size criteria. Institutional Shares are designed for investors who meet certain administrative and service criteria and invest a minimum of $5 million. ETF Shares are listed for trading on the NYSE Arca, Inc.; they can be purchased and sold through a broker.

 

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.

 

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

 

3. Futures and Forward Currency Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market.

 

55

Pacific Stock Index Fund

 

The fund may also enter into forward currency contracts to provide the appropriate currency exposure related to any open futures contracts. The primary risk associated with the fund’s use of these contracts is that a counterparty will fail to fulfill its obligation to pay gains due to the fund under the contracts.

 

Futures and forward currency contracts are valued at their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures or forward currency contracts.

 

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended October 31, 2005–2008), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

 

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

 

6. Security Lending: The fund may lend its securities to qualified institutional borrowers to earn additional income. Security loans are required to be secured at all times by collateral at least equal to the market value of securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability for the return of the collateral, during the period the securities are on loan. Security lending income represents the income earned on investing cash collateral, less expenses associated with the loan.

 

7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on redemptions of capital shares are credited to paid-in capital.

 

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

 

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At October 31, 2008, the fund had contributed capital of $985,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.98% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

 

56

Pacific Stock Index Fund

 

C. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

 

During the year ended October 31, 2008, the fund realized net foreign currency losses of $9,327,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized losses to undistributed net investment income. Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. During the year ended October 31, 2008, the fund realized gains on the sale of passive foreign investment companies of $11,640,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Unrealized appreciation of $194,526,000 on the fund’s passive foreign investment company holdings at October 31, 2007, has been distributed and is reflected in the balance of undistributed net investment income. Since October 31, 2007, the fund’s passive foreign investment company holdings have depreciated in value, reducing the amount of taxable income available for distribution as of October 31, 2008 by $185,016,000. Unrealized appreciation on the fund’s passive foreign investment company holdings at October 31, 2008, was $9,510,000.

 

During the year ended October 31, 2008, the fund realized $1,129,766,000 of net capital gains resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital.

 

For tax purposes, at October 31, 2008, the fund had $125,413,000 of ordinary income available for distribution. The fund had available realized losses of $532,747,000 to offset future net capital gains of $1,920,000 through October 31, 2009, $68,660,000 through October 31, 2010, $4,471,000 through October 31, 2011, $4,674,000 through October 31, 2013, and $453,022,000 through October 31, 2016.

 

At October 31, 2008, the cost of investment securities for tax purposes was $12,616,600,000. Net unrealized depreciation of investment securities for tax purposes was $3,729,421,000, consisting of unrealized gains of $154,068,000 on securities that had risen in value since their purchase and $3,883,489,000 in unrealized losses on securities that had fallen in value since their purchase.

 

57

Pacific Stock Index Fund

 

At October 31, 2008, the aggregate settlement value of open futures contracts expiring in December 2008 and the related unrealized appreciation (depreciation) were:

 

 

 

 

 

($000)

 

Number of

Aggregate

Unrealized

 

Long (Short)

Settlement

Appreciation

Futures Contracts

Contracts

Value

(Depreciation)

Topix Index

1,064

92,390

(22,399)

S&P ASX 200 Index

414

27,559

(3,033)

 

 

At October 31, 2008, the fund had open forward currency contracts to receive and deliver currencies as follows:

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

Appreciation

 

 

Contract Amount (000)

(Depreciation)

Contract Settlement Date

 

Receive

 

Deliver

($000)

12/23/2008

AUD

36,477

USD

23,952

(3,616)

12/17/2008

JPY

1,237,180

USD

12,606

257

 

 

 

 

 

 

AUD—Australian dollar.

 

 

 

 

 

JPY—Japanese yen.

 

 

 

 

 

USD—U.S. dollar.

 

 

 

 

 

 

Unrealized appreciation (depreciation) on open forward currency contracts is treated as realized gain (loss) for tax purposes.

 

The fund had net unrealized foreign currency gains of $4,954,000 resulting from the translation of other assets and liabilities at October 31, 2008.

 

D. During the year ended October 31, 2008, the fund purchased $3,238,517,000 of investment securities and sold $4,194,545,000 of investment securities, other than temporary cash investments.

 

 

58

Pacific Stock Index Fund

 

E. Capital share transactions for each class of shares were:

 

 

 

 

 

Year Ended October 31,

 

 

2008

 

2007

 

Amount

Shares

Amount

Shares

 

($000)

(000)

($000)

(000)

Investor Shares

 

 

 

 

Issued

2,411,768

203,868

2,509,485

193,872

Issued in Lieu of Cash Distributions

244,964

19,319

174,133

14,134

Redeemed1

(4,188,958)

(380,723)

(746,241)

(57,211)

Net Increase (Decrease)—Investor Shares

(1,532,226)

(157,536)

1,937,377

150,795

Admiral Shares

 

 

 

 

Issued

226,260

2,951

364,227

4,302

Issued in Lieu of Cash Distributions

24,546

296

22,198

275

Redeemed1

(216,451)

(2,998)

(428,495)

(4,870)

Net Increase (Decrease)—Admiral Shares

34,355

249

(42,070)

(293)

Signal Shares

 

 

 

 

Issued

119,279

4,249

249,314

7,875

Issued in Lieu of Cash Distributions

5,089

176

Redeemed1

(92,729)

(3,794)

(6,799)

(220)

Net Increase (Decrease)—Signal Shares

31,639

631

242,515

7,655

Institutional Shares

 

 

 

 

Issued

918,220

82,517

963,535

73,688

Issued in Lieu of Cash Distributions

51,874

4,047

36,590

2,965

Redeemed1

(876,722)

(75,668)

(426,456)

(32,512)

Net Increase (Decrease)—Institutional Shares

93,372

10,896

573,669

44,141

ETF Shares

 

 

 

 

Issued

541,682

8,588

628,365

9,203

Issued in Lieu of Cash Distributions

Redeemed1

(22,550)

(400)

Net Increase (Decrease)—ETF Shares

519,132

8,188

628,365

9,203

 

 

1 Net of redemption fees of $911,000 and $508,000 (fund totals).

 

 

59

Pacific Stock Index Fund

 

F. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

 

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

The following table summarizes the fund’s investments as of October 31, 2008, based on the inputs used to value them:

 

 

 

 

Forward

 

Investments

Futures

Currency

 

in Securities

Contracts

Contracts

Valuation Inputs

($000)

($000)

($000)

Level 1—Quoted prices

236,220

(25,432)

(3,359)

Level 2—Other significant observable inputs

8,650,959

Level 3—Significant unobservable inputs

Total

8,887,179

(25,432)

(3,359)

 

 

60

Emerging Markets Stock Index Fund

 

Fund Profile

As of October 31, 2008

 

 

Portfolio Characteristics

 

 

 

 

Target

Broad

 

Fund

Index1

Index2

Number of Stocks

830

781

1,898

Turnover Rate

20%

Expense Ratio

 

 

 

(10/31/2007)3

 

Investor Shares

0.37%

 

 

Admiral Shares

0.25%

 

 

Signal Shares

0.25%

 

 

Institutional Shares

0.20%

 

 

ETF Shares

0.25%

 

 

Short-Term Reserves

0.4%

 

 

Sector Diversification (% of equity exposure)

 

 

Target

Broad

 

Fund

Index1

Index2

Consumer Discretionary

5.5%

5.2%

9.0%

Consumer Staples

5.3

5.3

9.9

Energy

16.3

16.2

12.0

Financials

21.4

21.5

21.4

Health Care

2.5

2.4

9.7

Industrials

7.4

7.4

10.0

Information Technology

12.5

12.3

9.1

Materials

12.6

12.8

7.4

Telecommunication

 

 

 

Services

12.9

13.2

6.0

Utilities

3.6

3.7

5.5

 

 

Volatility Measures4

 

 

Fund Versus

Fund Versus

 

Target Index1

Broad Index2

R-Squared

0.99

0.93

Beta

0.98

1.32

 

 

Ten Largest Holdings5 (% of total net assets)

 

 

 

Petróleo Brasileiro SA

integrated oil

 

 

and gas

3.6%

China Mobile

wireless

 

(Hong Kong) Ltd.

telecommunication

 

 

services

3.0

Samsung

 

 

Electronics Co., Ltd.

semiconductors

2.9

OAO Gazprom

integrated oil

 

Sponsored ADR

and gas

2.7

Companhia Vale do

diversified metals

 

Rio Doce

and mining

2.4

Teva Pharmaceutical

 

 

Industries Ltd.

pharmaceuticals

1.8

Taiwan Semiconductor

 

 

Manufacturing Co., Ltd.

semiconductors

1.7

America Movil SA de CV

wireless

 

 

telecommunication

 

 

services

1.6

Industrial and

 

 

Commercial Bank of

diversified

 

China Ltd. Class H

banks

1.1

China Life

life and

 

Insurance Co., Ltd.

health insurance

1.1

Top Ten

 

21.9%

 

 

1 MSCI Emerging Markets Index.

2 MSCI All Country World Index ex USA.

3 The expense ratios shown are from the prospectus dated August 29, 2008. For the fiscal year ended October 31, 2008, the expense ratios were 0.32% for Investor Shares, 0.20% for Admiral Shares, 0.20% for Signal Shares, 0.15% for Institutional Shares, and 0.20% for ETF Shares.

4 For an explanation of R-squared, beta, and other terms used here, see the Glossary.

5 The holdings listed exclude any temporary cash investments and equity index products.

 

 

61

Emerging Markets Stock Index Fund

 

 

Market Diversification (% of equity exposure)

 

 

Target

 

Fund

Index1

China

15.6%

15.4%

Brazil

13.8

14.2

South Korea

13.6

13.5

Taiwan

11.8

11.7

Russia

7.8

7.4

South Africa

7.6

7.2

India

6.8

6.6

Mexico

5.1

5.2

Israel

3.4

3.3

Malaysia

3.0

2.9

Poland

1.8

1.7

Turkey

1.7

1.6

Chile

1.4

1.4

Indonesia

1.4

1.4

Thailand

1.4

1.3

Other Emerging Markets

3.8

5.2

 

 

1 MSCI Emerging Markets Index.

 

 

62

Emerging Markets Stock Index Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

Cumulative Performance: October 31, 1998–October 31, 2008

Initial Investment of $10,000

 


 

 

 

 

Average Annual Total Returns

Final Value of

 

Periods Ended October 31, 2008

a $10,000

 

One Year

Five Years

Ten Years

Investment

Emerging Markets Stock Index Fund

 

 

 

 

Investor Shares1

–56.88%

8.94%

9.19%

$24,084

MSCI All Country World Index ex USA

–48.27

5.05

3.19

13,692

Spliced Emerging Markets Index2

–56.35

9.22

9.39

24,536

Average Emerging Markets Fund3

–57.30

8.20

9.08

23,847

 

 

 

 

Final Value of

 

 

Since

a $100,000

 

One Year

Inception4

Investment

Emerging Markets Stock Index Fund Admiral Shares1

–56.85%

–6.62%

$85,102

MSCI All Country World Index ex USA

–48.27

–10.00

78,004

Spliced Emerging Markets Index2

–56.35

–6.61

85,121

 

 

1 Performance figures are adjusted for the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases and redemptions. Total returns do not reflect the 2% fee assessed until March 23, 2005, on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or, for Investor Shares, the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Select Emerging Markets Index through August 23, 2006; MSCI Emerging Markets Index thereafter.

3 Derived from data provided by Lipper Inc.

4 Performance for the fund’s Admiral Shares and comparative standards is calculated since the Admiral Shares’ inception: June 23, 2006.

 

 

63

Emerging Markets Stock Index Fund

 

 

 

 

 

 

Final Value of

 

 

 

Since

a $10,000,000

 

One Year

 

Inception1

Investment

Emerging Markets Stock Index Fund Signal Shares2

–56.85%

 

–20.67%

$6,620,273

MSCI All Country World Index ex USA

–48.27

 

–21.83

6,448,410

MSCI Emerging Markets Index

–56.35

 

–20.57

6,634,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Final Value of

 

 

 

Since

a $5,000,000

 

One Year

Five Years

Inception1

Investment

Emerging Markets Stock Index Fund

 

 

 

 

Institutional Shares2

–56.82%

9.13%

6.10%

$8,203,312

MSCI All Country World Index ex USA

–48.27

5.05

0.11

5,047,306

Spliced Emerging Markets Index3

–56.35

9.22

6.24

8,291,634

 

 

 

 

 

Final Value of

 

 

Since

a $10,000

 

One Year

Inception1

Investment

Emerging Markets Stock Index Fund

 

 

 

ETF Shares Net Asset Value

–56.62%

0.99%

$10,368

MSCI All Country World Index ex USA

–48.27

–2.25

9,202

Spliced Emerging Markets Index3

–56.35

1.00

10,372

 

 

Cumulative Returns: ETF Shares, March 4, 2005–October 31, 2008

 

 

 

 

Since

 

One Year

Inception1

Emerging Markets Stock Index Fund ETF Shares Market Price

–56.74%

3.81%

Emerging Markets Stock Index Fund ETF Shares Net Asset Value

–56.62

3.68

Spliced Emerging Markets Index3

–56.35

1.00

 

 

1 Performance for the fund and its comparative standards is calculated since the following inception dates: January 19, 2007, for the Signal Shares; June 22, 2000, for the Institutional Shares; and March 4, 2005, for the ETF Shares.

2 Performance figures are adjusted for the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases and redemptions. Total returns do not reflect the 2% fee assessed until March 23, 2005, on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

3 Select Emerging Markets Index through August 23, 2006; MSCI Emerging Markets Index thereafter.

 

64

Emerging Markets Stock Index Fund

 

Fiscal-Year Total Returns (%): October 31, 1998–October 31, 2008

 


 

Average Annual Total Returns: Periods Ended September 30, 2008

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

Inception Date

One Year

Five Years

Ten Years

Emerging Markets Stock Index Fund

 

 

 

 

Investor Shares2

5/4/1994

–32.71%

18.39%

14.46%

Fee-Adjusted Returns3

 

–33.05

18.27

14.41

Admiral Shares

6/23/2006

–32.61

7.674

Fee-Adjusted Returns3

 

–32.95

7.434

Signal Shares

1/19/2007

–32.63

–4.794

Fee-Adjusted Returns3

 

–32.96

–5.074

Institutional Shares

6/22/2000

–32.59

18.59

10.474

Fee-Adjusted Returns3

 

–32.93

18.48

10.414

ETF Shares

3/4/2005

 

 

 

Market Price

 

–32.01

10.814

Net Asset Value

 

–32.62

10.594

 

 

1 Select Emerging Markets Index through August 23, 2006; MSCI Emerging Markets Index thereafter.

2 Returns do not reflect the account service fee that may be applicable to certain accounts with balances below $10,000.

3 Performance figures are adjusted for the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases and redemptions.

4 Return since inception.

Note: See Financial Highlights tables for dividend and capital gains information.

 

 

65

Emerging Markets Stock Index Fund

 

Financial Statements

 

Statement of Net Assets

As of October 31, 2008

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Common Stocks (99.6%)1

 

 

Argentina (0.4%)

 

 

 

Tenaris SA ADR

1,010,982

20,816

 

Tenaris SA

1,351,827

15,289

 

Siderar SA Class A

780,264

3,917

 

Petrobras Energia

 

 

 

Participaciones SA ADR

587,636

3,649

*

Telecom Argentina SA

 

 

 

ADR

362,513

2,110

^

Banco Macro Bansud SA

 

 

 

ADR

282,918

1,994

 

Petrobras Energia

 

 

 

Participaciones SA

2,793,723

1,939

*

Telecom Argentina SA

1,330,950

1,729

 

 

 

51,443

Brazil (13.8%)

 

 

 

Petroleo Brasileiro

 

 

 

SA Pfd.

17,653,912

190,188

 

Petroleo Brasileiro SA

12,758,696

168,899

 

Companhia Vale do Rio

 

 

 

Doce Pfd. Class A

10,624,077

123,232

 

Companhia Vale do

 

 

 

Rio Doce

7,430,038

95,340

 

Banco Bradesco SA

8,005,600

91,825

 

Banco Itau Holding

 

 

 

Financeira SA

6,217,400

67,153

 

Petroleo Brasileiro

 

 

 

SA Series A ADR

2,300,677

50,776

 

Itausa-Investimentos

 

 

 

Itau SA

14,535,985

46,362

 

Petroleo Brasileiro SA

 

 

 

ADR

1,700,354

45,723

 

Companhia Vale do Rio

 

 

 

Doce Sponsored ADR

3,902,181

45,695

 

Companhia de Bebidas

 

 

 

das Americas Pfd.

967,909

41,147

 

Companhia Vale do Rio

 

 

 

Doce ADR

2,754,348

36,137

 

Unibanco-Uniao de

 

 

 

Bancos Brasileiros SA

5,211,883

32,236

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Banco Bradesco SA ADR

2,319,882

27,143

 

Banco Itau Holding

 

 

 

Financeira SA ADR

2,419,633

26,761

 

Companhia Siderurgica

 

 

 

Nacional SA

1,808,860

24,062

 

Companhia Energetica

 

 

 

de Minas Gerais Pfd.

1,569,006

23,848

 

BM&F BOVESPA SA

8,622,676

22,885

 

Usiminas-Usinas

 

 

 

Siderugicas de

 

 

 

Minas Gerais SA Pfd.

1,785,255

22,826

 

Gerdau SA Pfd.

3,504,900

22,293

 

Tele Norte Leste

 

 

 

Participacoes SA Pfd.

1,524,163

20,613

 

Redecard SA

1,894,997

20,564

 

Centrais Electricas

 

 

 

Brasileiras SA

1,591,391

19,076

 

Metalurgica Gerdau SA

1,936,562

17,278

 

Banco do Brasil SA

2,328,965

15,372

 

Centrais Electricas

 

 

 

Brasileiras SA Pfd.

 

 

 

B Shares

1,418,019

15,349

 

Uniao de Bancos

 

 

 

Brasileiros SA GDR

234,630

14,800

 

Bradespar SA Pfd.

1,603,511

14,092

 

All America Latina

 

 

 

Logistica

2,767,013

12,746

 

CPFL Energia SA

845,189

12,242

 

Empresa Brasileira

 

 

 

de Aeronautica SA

2,387,949

12,235

 

Perdigao SA

797,962

11,595

*

Ironx Mineracao SA

861,125

11,328

*

OGX Petroleo e Gas

 

 

 

Participacoes SA

90,386

11,327

 

Companhia Siderurgica

 

 

 

Nacional SA ADR

803,380

10,926

 

Brasil Telecom

 

 

 

Participacoes SA

484,328

10,172

 

Ultrapar Participacoes S.A.

546,123

10,083

 

Vivo Participacoes SA Pfd.

911,118

9,917

 

66

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Companhia de Bebidas

 

 

 

das Americas ADR

224,399

9,537

 

Souza Cruz SA

536,015

9,295

 

Electropaulo Metropolitana

 

 

 

SA

660,113

8,105

 

Embraer-Empresa Brasileira

 

 

 

de Aeronautica SA ADR

387,345

8,103

 

Companhia de Concessoes

 

 

 

Rodoviarias

842,040

8,084

 

Telmar Norte Leste SA

321,300

8,075

*

Net Servicos de

 

 

 

Comunicacao SA

1,267,041

8,053

 

Brasil Telecom

 

 

 

Participacoes SA Pfd.

1,086,126

7,610

 

Natura Cosmeticos SA

900,089

7,561

 

Gerdau SA ADR

1,125,056

7,212

 

Tractebel Energia SA

917,109

7,196

 

Cyrela Brazil Realty SA

1,501,689

7,153

 

Tele Norte Leste

 

 

 

Participacoes SA

461,381

6,921

 

Votorantim Celulose e

 

 

 

Papel SA Pfd.

666,869

6,556

 

Gerdau SA

1,236,550

6,535

 

Companhia de

 

 

 

Saneamento Basico

 

 

 

do Estado de Sao Paulo

568,382

6,506

 

Lojas Americanas SA Pfd.

2,318,498

6,410

 

Lojas Renner SA

849,165

6,271

 

Companhia Brasileira de

 

 

 

Distribuicao Grupo Pao

 

 

 

de Acucar ADR

206,032

6,167

 

Companhia Energetica

 

 

 

de Minas Gerais ADR

401,689

6,110

*

GVT Holding SA

546,499

5,941

 

Gafisa SA

832,380

5,898

 

Suzano Papel e Celulose

 

 

 

SA

950,803

5,639

 

B2W Com Global

 

 

 

Do Varejo

416,598

5,346

 

Tam SA

510,917

5,330

 

Klabin SA

3,045,753

5,258

 

Usinas Siderurgicas de

 

 

 

Minas Gerais SA

450,033

5,152

 

Braskem SA

1,200,724

5,143

 

Brasil Telecom SA Pfd.

855,932

5,097

 

Energias do Brasil SA

472,795

5,085

 

CESP - Companhia

 

 

 

Energetica de Sao Paulo

1,125,527

5,039

 

Tim Participacoes SA Pfd.

3,420,432

4,878

 

Companhia Paranaense

 

 

 

de Energia-COPEL

442,739

4,868

 

Fertilizantes Fosfatados

 

 

 

S.A.

912,776

4,740

 

JBS SA

2,478,845

4,474

 

Tele Norte Leste

 

 

 

Participacoes ADR

320,272

4,349

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Duratex SA Pfd.

501,492

4,190

 

Companhia Paranaense

 

 

 

de Energia-COPEL ADR

290,409

3,229

 

Sadia SA Pfd.

1,600,277

3,191

 

Banco do Estado do

 

 

 

Rio Grande do Sul SA

1,295,430

2,996

*

Cosan SA Industria e

 

 

 

Comercio

584,450

2,881

 

Companhia de

 

 

 

Saneamento Basico

 

 

 

do Estado de Sao

 

 

 

Paulo ADR

123,449

2,839

 

Companhia Brasileira

 

 

 

de Distribuicao Grupo

 

 

 

Pao de Acucar Pfd.

183,869

2,755

 

Localiza Rent a Car SA

698,552

2,708

 

MRV Engenharia e

 

 

 

Participacoes SA

462,446

2,393

 

Aracruz Celulose SA ADR

176,849

2,352

 

Aracruz Celulose SA Pfd.

 

 

 

B Shares

1,658,905

2,037

 

Sadia SA ADR

310,387

1,881

 

Gol - Linhas Aereas

 

 

 

Inteligentes SA Pfd.

410,260

1,767

 

MMX Mineracao e

 

 

 

Metalicos SA

918,072

1,754

 

Tim Participacoes SA ADR

97,154

1,405

 

Brasil Telecom

 

 

 

Participacoes SA ADR

11,676

400

*

LLX Logistica SA

813,466

285

*

Vivo Participacoes SA ADR

2,193

24

 

Votorantim Celulose

 

 

 

e Papel SA ADR

1,799

18

 

Braskem SA ADR

2,012

17

 

 

 

1,723,065

Chile (1.4%)

 

 

 

Empresas Copec SA

2,715,193

22,244

 

Empresa Nacional de

 

 

 

Electricidad SA

16,338,550

19,073

 

Enersis SA

65,024,375

17,645

 

Empresas CMPC SA

715,891

13,181

 

Sociedad Quimica y

 

 

 

Minera de Chile SA

444,322

9,340

 

Empresa Nacional de

 

 

 

Electricidad SA ADR

244,239

9,086

 

Lan Airlines SA

971,219

8,789

 

Enersis SA ADR

582,508

8,388

 

Empresa Nacional de

 

 

 

Telecomunicaciones SA

765,922

7,936

 

Cencosud SA

5,359,821

7,839

 

Banco Santander Chile

 

 

 

SA ADR

211,216

7,561

 

CAP SA

542,652

6,532

*

Colburn SA

39,500,394

5,924

 

S.A.C.I. Falabella, SA

2,111,290

5,556

 

67

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Banco Santander Chile

 

 

 

SA

177,458,517

5,424

 

Compania Cervecerias

 

 

 

Unidas SA

931,173

4,998

 

Sociedad Quimica y

 

 

 

Minera de Chile SA ADR

213,144

4,881

 

Distribucion y Servicio

 

 

 

D&S SA

15,999,047

4,484

 

Banco de Credito e

 

 

 

Inversiones

220,261

3,694

 

Masisa SA

22,645,066

1,722

 

Compania de

 

 

 

Telecomunicaciones

 

 

 

de Chile SA ADR

228,090

1,549

 

Distribucion y Servicio

 

 

 

D&S SA ADR

40,380

719

 

 

 

176,565

China (15.7%)

 

 

 

China Mobile

 

 

 

(Hong Kong) Ltd.

42,582,467

374,867

^

Industrial and

 

 

 

Commercial Bank of

 

 

 

China Ltd. Class H

293,692,659

138,188

^

China Life

 

 

 

Insurance Co., Ltd.

50,087,110

133,853

^

China Construction

 

 

 

Bank

238,544,163

118,337

 

PetroChina Co. Ltd.

149,630,899

112,506

 

CNOOC Ltd.

110,897,552

91,056

 

China Petroleum &

 

 

 

Chemical Corp.

118,586,580

77,872

 

China Unicom Ltd.

42,065,048

60,056

^

Bank of China

188,874,475

55,149

^

Tencent Holdings Ltd.

6,366,159

46,345

 

China Shenhua

 

 

 

Energy Co. Ltd.

 

 

 

H-Shares

22,998,000

43,664

^

Ping An Insurance

 

 

 

(Group) Co.

 

 

 

of China Ltd.

9,036,488

38,647

 

China Telecom

 

 

 

Corp. Ltd.

98,013,305

34,883

^

China Overseas Land

 

 

 

& Investment Ltd.

27,381,958

30,922

^

China Merchants

 

 

 

Bank Co., Ltd. Class H

18,789,500

28,786

^

Bank of

 

 

 

Communications Ltd.

 

 

 

Class H

40,997,902

24,161

 

China Communications

 

 

 

Construction Co., Ltd.

29,751,484

21,074

 

China Resources Power

 

 

 

Holdings Co., Ltd.

10,282,740

20,096

 

China Merchants

 

 

 

Holdings International

 

 

 

Co. Ltd.

7,656,462

18,241

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

China Resources

 

 

 

Enterprise Ltd.

8,401,916

16,727

*,^

China Railway

 

 

 

Group, Ltd.

26,775,616

15,634

*

China Railway

 

 

 

Construction Corp.

12,524,500

15,472

 

China Coal Energy Co.

23,186,000

14,062

^

Tingyi Holding Corp.

11,935,347

12,643

^

Hengan International

 

 

 

Group Co. Ltd.

4,501,000

12,554

 

China Insurance

 

 

 

International Holdings

 

 

 

Co., Ltd.

5,123,007

11,943

 

Beijing Enterprises

 

 

 

Holdings Ltd.

2,813,500

11,111

^

Huaneng Power

 

 

 

International, Inc.

 

 

 

H Shares

21,447,262

10,434

^

Aluminum Corp. of

 

 

 

China Ltd.

27,800,680

10,102

 

China COSCO

 

 

 

Holdings Co., Ltd.

18,027,500

9,712

*,^

Anhui Conch

 

 

 

Cement Co. Ltd.

3,039,828

9,681

 

Chaoda Modern

 

 

 

Agriculture

 

 

 

Holdings Ltd.

13,670,319

9,631

^

China Citic Bank

30,480,482

9,416

 

GOME Electrical

 

 

 

Appliances

 

 

 

Holdings Ltd.

44,554,920

8,900

 

Beijing Datang

 

 

 

Power Generation

 

 

 

Co., Ltd.

23,087,736

8,695

 

Denway Motors Ltd.

34,437,618

8,588

 

China Shipping

 

 

 

Development Co.

8,683,659

8,557

 

Fujian Zijin Mining

 

 

 

Industry Co., Ltd.

28,134,120

8,503

 

Lenovo Group Ltd.

28,021,447

8,496

 

Belle International

 

 

 

Holdings Ltd.

17,642,073

8,473

^

Sinofert Holdings, Ltd.

14,748,000

8,230

 

Yanzhou Coal Mining

 

 

 

Co. Ltd. H Shares

13,100,582

8,091

 

CHINA YURUN FOOD

 

 

 

GROUP LTD.

6,473,000

7,694

^

China Resources

 

 

 

Land Ltd.

7,340,000

7,430

 

Beijing Capital

 

 

 

International Airport

 

 

 

Co., Ltd.

13,173,654

7,428

^

Parkson Retail

 

 

 

Group Ltd.

7,787,975

7,229

 

China Mengniu

 

 

 

Dairy Co., Ltd.

7,442,836

7,156

 

68

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

^

BYD Co. Ltd.

4,031,755

6,853

 

China Communication

 

 

 

Services Corp. Ltd.

12,562,000

6,606

*

Shanghai Electric Group

 

 

 

Co., Ltd. Class H

20,971,178

6,346

 

CITIC Pacific Ltd.

7,652,218

6,223

 

Jiangsu Expressway

 

 

 

Co. Ltd. H Shares

8,685,777

6,075

 

Shanghai Industrial

 

 

 

Holding Ltd.

3,776,645

6,005

 

Sino-Ocean Land

 

 

 

Holdings Ltd.

21,982,365

5,909

 

China Oilfield

 

 

 

Services Ltd.

10,740,000

5,902

^

Li Ning Co., Ltd.

4,741,068

5,867

 

Cosco Pacific Ltd.

7,928,492

5,774

 

Dongfeng Motor Corp.

19,297,832

5,463

 

Guangdong

 

 

 

Investment Ltd.

17,697,304

5,417

 

CNPC Hong Kong Ltd.

17,594,330

5,395

^

Shimao Property

 

 

 

Holdings Ltd.

9,602,862

5,207

 

China Everbright Ltd.

5,276,570

4,954

 

China Vanke Co., Ltd.

8,271,480

4,888

 

Zhejiang Expressway

 

 

 

Co., Ltd.

10,184,528

4,879

^

Air China Ltd.

17,135,068

4,786

*,^

PICC Property and

 

 

 

Casualty Co., Ltd.

17,173,551

4,755

^

Angang Steel Co., Ltd.

7,711,306

4,732

^

Jiangxi Copper Co. Ltd.

9,315,637

4,580

^

China High Speed

 

 

 

Transmission Equipment

 

 

 

Group Co., Ltd.

5,759,872

4,576

*,^

Alibaba.com, Ltd.

7,544,687

4,556

^

Country Garden

 

 

 

Holdings Co.

22,728,307

4,037

 

Agile Property

 

 

 

Holdings, Inc.

11,751,177

3,905

 

Inner Mongolia Yitai

 

 

 

Coal Co., Ltd.

2,297,800

3,884

 

Yantai Changyu Pioneer

 

 

 

Wine Co., Ltd.

1,249,940

3,884

 

The Guangshen

 

 

 

Railway Co., Ltd.

9,789,345

3,811

^

China National Building

 

 

 

Material Co., Ltd.

6,284,359

3,660

*,^

China Agri-Industries

 

 

 

Holdings Ltd.

9,963,534

3,552

^

China Bluechemical, Ltd.

9,204,000

3,491

^

Guangzhou R&F

 

 

 

Properties Co. Ltd.

7,189,600

3,455

^

ZTE Corp.

1,449,423

3,277

*

Soho China

10,973,068

3,262

 

Sinopec Shanghai

 

 

 

Petrochemical Co. Ltd.

16,747,668

3,135

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Shui On Land Ltd.

12,882,464

2,918

 

China Travel

 

 

 

International

20,448,049

2,900

^

China Shipping Container

 

 

 

Lines Co. Ltd.

24,776,618

2,853

 

Shanghai Zhenhua Port

 

 

 

Machinery Co., Ltd.

 

 

 

Class B

4,528,999

2,851

 

China International

 

 

 

Marine Containers

 

 

 

(Group) Co.,Ltd.

5,440,259

2,750

 

Harbin Power Equipment

 

 

 

Co., Ltd.

4,645,867

2,583

 

Shanghai Lujiazui Finance

 

 

 

& Trade Zone

 

 

 

DevelopmentCo., Ltd.

 

 

 

Class B

3,375,400

2,429

 

Maanshan Iron and

 

 

 

Steel Co. Ltd.

12,534,922

2,336

^

Dongfang Electrical

 

 

 

Corp. Ltd.

1,161,600

2,261

 

Fosun International

10,918,630

2,248

 

Guangzhou Investment

 

 

 

Co. Ltd.

27,856,000

2,071

*,^

China Southern Airlines

 

 

 

Co. Ltd.

12,283,924

1,913

^

Nine Dragons Paper

 

 

 

Holdings Ltd.

10,132,150

1,747

 

Shougang Concord

 

 

 

International

 

 

 

Enterprises

 

 

 

Company Ltd.

20,663,469

1,711

*,^

CITIC Resources

 

 

 

Holdings Ltd.

18,452,300

1,404

^

Hopson Development

 

 

 

Holdings Ltd.

4,126,211

1,379

 

Hidili Industry Int’l

 

 

 

Development Ltd.

6,260,424

1,325

*,^

China Eastern Airlines

 

 

 

Corp. Ltd.

10,403,782

1,320

 

KWG Property

 

 

 

Holding, Ltd.

5,591,500

1,197

 

 

 

1,960,592

Colombia (0.2%)

 

 

 

Bancolombia SA ADR

1,183,037

23,105

 

 

 

 

Czech Republic (0.9%)

 

 

 

Ceske Energeticke

 

 

 

Zavody a.s.

1,470,303

64,306

 

Cesky Telecom a.s.

819,877

17,520

 

Komercni Banka a.s.

109,207

16,628

 

Zentiva NV

193,052

11,262

*

Central European

 

 

 

Media Enterprises Ltd.

219,616

5,432

 

Unipetrol a.s.

517,362

3,877

 

 

 

119,025

 

69

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Egypt (0.4%)

 

 

 

Orascom Construction

 

 

 

Industries GDR

440,725

29,727

 

Orascom Telecom Holding

 

 

 

SAE GDR

834,925

25,938

 

 

 

55,665

Hungary (0.6%)

 

 

*,^

OTP Bank Nyrt.

1,945,583

32,223

 

MOL Hungarian Oil and

 

 

 

Gas Nyrt.

430,528

23,293

 

Richter Gedeon Nyrt.

102,323

14,137

 

Magyar Tavkozlesi Nyrt.

3,400,554

10,759

 

 

 

80,412

India (6.8%)

 

 

 

Reliance Industries Ltd.

4,625,776

131,129

 

Infosys Technologies Ltd.

3,229,800

93,890

 

Housing Development

 

 

 

Finance Corp. Ltd.

1,484,470

53,885

 

HDFC Bank Ltd.

1,465,139

31,139

 

ICICI Bank Ltd.

3,409,415

28,308

 

Hindustan Lever Ltd.

6,140,273

27,886

 

Oil and Natural

 

 

 

Gas Corp. Ltd.

1,982,723

27,257

 

ITC Ltd.

7,730,236

24,611

 

Larsen & Toubro Ltd.

1,398,237

23,308

 

Bharat Heavy

 

 

 

Electricals Ltd.

826,949

21,969

 

Reliance Communication

 

 

 

Ventures

4,354,751

19,859

 

NTPC Ltd.

5,911,251

17,151

 

ICICI Bank Ltd. ADR

1,000,672

17,102

 

Axis Bank Ltd.

1,387,263

16,069

 

Satyam Computer

 

 

 

Services Ltd.

2,541,913

16,027

 

Tata Consultancy

 

 

 

Services Ltd.

1,402,825

15,648

 

Gail India Ltd.

2,670,329

11,843

 

Reliance Capital Ltd.

793,943

10,778

 

HDFC Bank Ltd. ADR

158,255

10,382

 

Sterlite Industries

 

 

 

(India) Ltd.

1,735,827

10,333

 

Sun Pharmaceutical

 

 

 

Industries Ltd.

433,519

10,031

 

Wipro Ltd.

1,661,681

9,315

 

Hero Honda Motors Ltd.

569,710

8,726

 

Cipla Ltd.

2,250,179

8,185

 

State Bank of India

339,697

7,777

 

Tata Power Co. Ltd.

543,908

7,742

 

Mahindra & Mahindra Ltd.

945,775

7,323

 

Jindal Steel & Power Ltd.

436,669

7,172

 

Reliance Energy Ltd.

750,891

7,120

*

Reliance Petroleum Ltd.

3,804,445

6,764

 

Satyam Computer

 

 

 

Services Ltd. ADR

421,377

6,628

 

Hindalco Industries Ltd.

5,213,607

6,521

 

DLF Ltd.

1,441,588

6,502

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

United Spirits Ltd.

350,383

6,447

 

Kotak Mahindra Bank

854,854

6,015

 

Tata Motors Ltd.

1,576,639

5,702

 

Maruti Udyog Ltd.

486,147

5,674

 

Steel Authority of

 

 

 

India Ltd.

3,227,300

5,641

*

Cairn India Ltd.

2,061,305

5,568

 

Ambuja Cements Ltd.

4,397,113

5,536

 

Infrastructure

 

 

 

Development

 

 

 

Finance Co., Ltd.

4,575,089

5,510

 

Jaiprakash

 

 

 

Associates Ltd.

3,646,302

5,494

 

Tata Iron and

 

 

 

Steel Co. Ltd.

1,242,588

5,416

 

Grasim Industries Ltd.

254,490

5,394

 

Zee Entertainment

 

 

 

Enterprises

1,483,790

4,712

 

Dr. Reddy’s

 

 

 

Laboratories Ltd.

477,512

4,228

 

Glenmark

 

 

 

Pharmaceuticals Ltd.

699,504

4,141

 

Asea Brown Boveri

 

 

 

India Ltd.

353,858

3,992

 

HCL Technologies Ltd.

1,115,945

3,990

 

JSW Steel Ltd.

609,752

3,882

 

Associated

 

 

 

Cement Cos. Ltd.

377,262

3,831

*

Reliance Natural

 

 

 

Resources, Ltd.

4,193,633

3,773

*

Essar Oil Ltd.

2,082,972

3,696

 

Bharat Petroleum

 

 

 

Corp. Ltd.

620,460

3,636

 

Indiabulls Real Estate Ltd.

1,388,774

3,450

 

Tata Communications Ltd.

328,050

3,318

*

GMR Infrastructure Ltd.

3,050,621

3,200

 

Siemens India Ltd.

567,689

3,096

^

Wipro Ltd. ADR

390,702

3,024

 

Ranbaxy Laboratories Ltd.

778,281

2,705

 

Aditya Birla Nuvo Ltd.

239,808

2,702

 

State Bank of India GDR

52,929

2,454

 

Indiabulls Financial

 

 

 

Services Ltd.

1,039,056

2,390

 

Unitech, Ltd.

2,325,644

2,369

 

Indian Hotels Co. Ltd.

2,152,155

2,048

 

Dr. Reddy’s

 

 

 

Laboratories Ltd. ADR

234,413

1,983

 

Ultratech Cemco Ltd.

262,141

1,922

 

Tata Communications Ltd.

45,952

1,102

 

Infosys Technologies Ltd.

 

 

 

ADR

5,089

149

 

 

 

846,570

Indonesia (1.4%)

 

 

 

PT Telekomunikasi

 

 

 

Indonesia Tbk

72,688,179

36,365

 

PT Bumi Resources Tbk

122,337,552

24,411

 

70

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

PT Bank Central

 

 

 

Asia Tbk

89,010,224

21,572

 

PT Bank Rakyat

 

 

 

Indonesia Tbk

39,989,552

12,236

 

PT Astra

 

 

 

International Tbk

14,657,694

12,201

 

PT Perusahaan Gas

 

 

 

Negara Tbk

74,900,210

9,432

 

PT Indonesian

 

 

 

Satellite Corp. Tbk

17,745,003

8,511

 

PT Unilever

 

 

 

Indonesia Tbk

11,451,730

7,815

 

PT Bank Mandiri Tbk

52,674,024

7,556

 

PT Bank International

 

 

 

Indonesia Tbk

158,038,500

6,886

 

PT United Tractors Tbk

10,921,347

3,183

 

PT Tambang Batubara

 

 

 

Bukit Asam Tbk

6,230,286

3,129

 

PT Bank Danamon Tbk

13,035,058

3,089

 

PT Indofood Sukses

 

 

 

Makmur Tbk

31,011,796

3,050

 

PT Semen Gresik Tbk

11,144,320

3,011

 

PT Indocement Tunggal

 

 

 

Prakarsa Tbk (Local)

7,625,149

2,500

 

PT Aneka Tambang Tbk

26,066,659

2,454

 

PT International Nickel

 

 

 

Indonesia Tbk

14,733,650

2,343

*

PT Indah Kiat Pulp &

 

 

 

Paper Corp.

21,667,500

1,653

 

PT Astra Agro Lestari Tbk

2,970,680

1,649

*

PT Truba

 

 

 

Alam Manunggal

 

 

 

Engineering Tbk

48,262,767

248

*

PT Bank Pan

 

 

 

Indonesia Tbk

 

 

 

Warrants Exp. 7/10/09

7,066,431

107

 

 

 

173,401

Israel (3.4%)

 

 

 

Teva Pharmaceutical

 

 

 

Industries Ltd.

5,418,628

231,079

 

Israel Chemicals Ltd.

3,738,144

37,702

*

Check Point Software

 

 

 

Technologies Ltd.

1,280,551

25,893

 

Bank Leumi Le-Israel

7,291,573

19,129

 

Bank Hapoalim Ltd.

6,883,479

15,587

 

Partner Communications

 

 

 

Co. Ltd.

634,289

11,618

 

Bezeq Israeli

 

 

 

Telecommunication

 

 

 

Corp., Ltd.

7,478,866

11,166

*

NICE Systems Ltd.

472,711

10,461

 

Elbit Systems Ltd.

194,049

9,281

 

Cellcom Israel Ltd.

268,871

7,921

 

Makhteshim-Agan

 

 

 

Industries Ltd.

2,075,383

7,859

 

The Israel Corp. Ltd.

16,287

7,686

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

United Mizrahi Bank Ltd.

892,781

4,674

 

Ormat Industries Ltd.

567,738

4,043

 

Israel Discount Bank Ltd.

3,609,103

3,546

 

Oil Refineries Ltd.

6,846,615

3,465

 

Koor Industries Ltd.

81,197

2,765

 

Discount Investment

 

 

 

Corp. Ltd.

225,942

2,639

 

Gazit Globe (1982) Ltd.

424,518

2,314

 

IDB Development Corp. Ltd.

183,705

2,168

 

Africa-Israel

 

 

 

Investments Ltd.

105,194

1,566

 

Delek Group, Ltd.

16,782

1,096

 

 

 

423,658

Malaysia (3.0%)

 

 

 

Bumiputra-Commerce

 

 

 

Holdings Bhd.

17,976,832

31,322

 

Sime Darby Bhd.

16,716,813

29,524

 

Malayan Banking Bhd.

17,424,092

26,546

 

Genting Bhd.

15,884,190

20,492

 

IOI Corp. Bhd.

23,847,155

18,903

 

Malaysia International

 

 

 

Shipping Corp., Bhd.

 

 

 

(Foreign)

7,899,365

18,194

 

Public Bank Bhd.

7,562,460

17,909

 

Tenaga Nasional Bhd.

9,187,746

15,617

 

Resorts World Bhd.

21,023,710

14,844

 

British American

 

 

 

Tobacco Bhd.

1,016,705

11,771

 

Digi.com Bhd.

2,222,455

11,563

 

YTL Corp., Bhd.

5,863,562

10,342

 

Petronas Gas Bhd.

3,573,028

9,881

*

TM International Bhd.

7,690,640

9,842

 

PPB Group Bhd.

3,826,544

8,391

 

PLUS Expressways Bhd.

10,756,482

8,082

 

Kuala Lumpur

 

 

 

Kepong Bhd.

3,434,408

8,035

 

AMMB Holdings Bhd.

12,895,658

7,860

 

UMW Holdings

 

 

 

Malaysia Bhd.

4,742,360

7,331

 

Telekom Malaysia Bhd.

7,506,440

7,101

 

Berjaya Sports Toto Bhd.

5,362,456

6,651

 

YTL Power

 

 

 

International Bhd.

13,682,527

6,447

 

Hong Leong Bank Bhd.

3,491,736

5,190

 

Tanjong Public Ltd. Co.

1,542,036

5,175

 

Gamuda Bhd.

11,467,288

4,903

 

SP Setia Bhd.

5,930,952

4,700

 

IJM Corp. Bhd.

5,486,150

3,982

 

Malaysia Mining Corp.,

 

 

 

Bhd.

6,603,800

3,706

 

Petronas Dagangan Bhd.

1,856,200

3,515

 

Bursa Malaysia Bhd.

2,384,052

3,505

 

KNM Group Bhd.

20,323,116

3,446

 

Alliance Financial Group

 

 

 

Bhd.

6,409,717

3,330

 

RHB Capital Bhd.

3,281,935

2,858

 

71

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

UEM World Bhd.

5,154,883

2,831

 

KLCC Property Holdings

 

 

 

Bhd.

3,535,100

2,708

*

Airasia Bhd.

8,028,648

2,586

 

IGB Corp., Bhd.

6,704,600

2,437

 

Parkson Holdings, Bhd.

2,449,095

2,323

 

Hong Leong

 

 

 

Financial Group Bhd.

2,028,700

2,202

 

Lafarge Malayan Cement

 

 

 

Bhd.

2,632,620

2,129

 

Malaysian Airline System

 

 

 

Bhd.

2,433,900

1,961

 

Astro All Asia Networks

 

 

 

PLC

2,937,190

1,751

 

Asiatic Development Bhd.

1,807,700

1,609

*

IJM Land Corp. Bhd.

 

 

 

Warrants Exp. 9/11/13

437,505

22

 

 

 

373,517

Mexico (5.1%)

 

 

 

America Movil SA de

 

 

 

CV

127,323,682

197,207

 

Grupo Televisa SA CPO

17,490,186

61,357

 

Wal-Mart de Mexico SA

20,872,024

56,124

 

Telefonos de Mexico SA

44,789,714

40,204

 

Fomento Economico

 

 

 

Mexicano UBD

15,178,368

38,455

 

Cemex SA CPO

50,023,311

37,554

 

Telmex Internacional

 

 

 

SAB de CV

46,701,782

24,535

 

Grupo Mexico SA de CV

27,290,726

21,315

*

Carso Global Telecom

 

 

 

SAB de CV

4,998,518

19,112

 

Grupo Financerio Banorte

 

 

 

SA de CV

9,415,030

17,246

 

Grupo Financiero Inbursa,

 

 

 

SA de CV

6,188,761

16,425

 

Grupo Elektra SA de CV

524,205

14,136

 

Kimberly Clark de Mexico

 

 

 

SA de CV Series A

3,962,732

13,027

 

Grupo Modelo SA

3,696,047

11,398

 

Grupo Carso SA de CV

 

 

 

Series A1

4,163,766

11,387

 

Grupo Bimbo SA

2,082,788

9,995

 

Industrias Penoles SA de

 

 

 

CV

714,094

6,407

 

Coca-Cola Femsa SA de

 

 

 

CV

1,930,673

6,117

*

Desarrolladora Homex

 

 

 

SA de CV

1,459,690

5,614

*

URBI Desarrollos Urbanos

 

 

 

SA de CV

3,216,493

4,824

*

Empresas ICA SA de CV

3,327,723

4,784

*

Corporacion GEO, SA de

 

 

 

CV

3,140,417

4,357

 

Alfa SA de CV Series A

2,013,231

4,168

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Grupo Aeroportuario

 

 

 

del Pacifico SA ADR

177,067

3,235

 

Grupo Aeroportuario

 

 

 

del Pacifico SA

1,638,707

2,993

 

Banco Conpartamos SA

 

 

 

de CV

1,738,418

2,956

*

Axtel, SAB de CV

3,885,310

2,023

 

Controladora Comercial

 

 

 

Mexicana SA de CV

 

 

 

(Units)

2,501,535

690

 

Cemex SAB de CV ADR

11,033

83

 

 

 

637,728

Peru (0.6%)

 

 

 

Credicorp Ltd.

468,402

18,104

 

Southern Copper Corp.

 

 

 

(U.S. Shares)

1,164,836

16,960

 

Southern Copper Corp.

769,472

11,157

 

Compania de Minas

 

 

 

Buenaventura SA

854,554

10,769

 

Compania Minera Milpo

 

 

 

SA

3,702,499

5,238

 

Compania de Minas

 

 

 

Buenaventura SA ADR

388,691

4,913

 

Minsur SA

2,827,565

3,347

 

Volcan Compania

 

 

 

Minera SA

3,615,332

1,716

*

Credicorp Ltd.

17,368

682

 

 

 

72,886

Philippines (0.6%)

 

 

 

Philippine Long Distance

 

 

 

Telephone Co.

405,180

16,576

 

Bank of Philippine Islands

10,647,700

8,816

 

Ayala Corp.

1,441,366

6,935

 

SM Investments Corp.

1,340,166

5,430

 

Ayala Land, Inc.

40,078,550

4,862

 

SM Prime Holdings, Inc.

27,975,806

4,815

 

Globe Telecom, Inc.

244,503

4,540

 

Manila Electric Co.

3,300,832

3,986

 

Banco De Oro

6,030,291

3,346

 

Jollibee Foods Corp.

3,042,759

2,877

 

PNOC Energy

 

 

 

Development Corp.

42,283,503

2,567

 

Metropolitan Bank &

 

 

 

Trust Co.

4,300,210

2,276

 

International Container

 

 

 

Terminal Services, Inc.

5,867,826

1,703

 

Megaworld Corp.

73,180,739

1,182

 

 

 

69,911

Poland (1.8%)

 

 

 

Powszechna Kasa

 

 

 

Oszczednosci Bank

 

 

 

Polski SA

3,593,587

40,600

 

Telekomunikacja Polska

 

 

 

SA

5,070,315

38,312

 

72

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Bank Polska Kasa Opieki

 

 

 

Grupa Pekao SA

839,644

38,188

 

Polski Koncern Naftowy

 

 

 

SA

2,355,303

24,017

 

Polish Oil & Gas

8,530,338

10,223

 

KGHM Polska Miedz SA

887,655

9,853

 

Bank Zachodni WBK SA

166,499

7,342

 

Asseco Poland SA

395,367

6,672

 

TVN SA

1,178,322

5,893

*

Globe Trade Centre SA

926,498

5,470

*

Getin Holding SA

2,323,002

4,842

*

PBG SA

67,387

4,751

*

Bank Rozwoju Eksportu

 

 

 

SA

66,046

4,449

 

Polimex Mostostal SA

2,919,002

3,234

 

BIG Bank Gdanski SA

2,200,950

3,130

*

Grupa Lotos SA

388,672

2,751

*

Cersanit-Krasnystaw SA

581,184

2,727

 

Orbis SA

194,706

2,662

 

Agora SA

319,533

2,257

*

Echo Investment SA

2,051,301

1,826

*

Bioton SA

12,263,028

1,739

 

Bank Przemyslowo

 

 

 

Handlowy PBK SA

68,120

1,221

 

 

 

222,159

Russia (7.8%)

 

 

 

OAO Gazprom

 

 

 

Sponsored ADR

16,768,867

333,920

 

LUKOIL Sponsored ADR

3,328,960

127,802

 

Sberbank

61,310,982

67,057

 

MMC Norilsk Nickel ADR

6,301,280

63,238

 

Mobile TeleSystems ADR

1,417,800

55,507

 

OAO

 

 

 

Vimpel-Communications

 

 

 

Sponsored ADR

3,281,322

47,579

 

Rosneft Oil Co. GDR

9,032,845

41,456

 

Surgutneftegaz OJSC

 

 

 

ADR

5,908,325

38,196

 

Uralkali

5,295,110

23,135

 

Tatneft GDR

515,607

22,585

 

NovaTek OAO GDR

541,668

21,421

 

VTB Bank OJSC GDR

6,534,031

20,628

 

Rostelecom ADR

456,226

16,994

 

Polyus Gold ADR

1,094,052

12,141

 

Surgutneftegaz Pfd.

49,938,991

11,708

^

Mechel OAO ADR

1,063,677

9,754

*

Pharmstandard-GDR

515,581

8,203

*

Hydro OGK

383,793,137

7,087

 

Sistema JSFC GDR

740,764

5,591

 

Gazprom Neft

2,442,010

5,569

 

Novolipetsk Steel GDR

581,257

5,475

 

Cherepovets MK

 

 

 

Severstal GDR

1,482,811

5,148

*

Wimm-Bill-Dann Foods

 

 

 

ADR

116,305

5,110

*

PIK Group-GDR

716,976

4,301

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

OAO TMK-GDR

396,987

4,289

 

OAO Transneft

11,741

3,856

 

Comstar United

 

 

 

Telesystems GDR

1,242,721

3,481

 

Magnitogorsk Iron &

 

 

 

Steel Works-GDR

913,694

2,705

 

Sberbank Pfd.

3,239,785

1,463

*

TGK-11

80,810,231

31

*

RAO Energy System of

 

 

 

East OAO Pfd.

14,263,636

28

 

 

 

975,458

South Africa (7.6%)

 

 

 

MTN Group Ltd.

11,212,054

125,902

 

Sasol Ltd.

4,250,515

125,466

 

Standard Bank

 

 

 

Group Ltd.

8,095,473

64,280

 

Naspers Ltd.

2,706,087

45,052

 

Impala Platinum

 

 

 

Holdings Ltd.

3,790,379

39,563

 

AngloGold Ltd.

1,955,266

37,156

 

British American

 

 

 

Tobacco PLC ZAR Line

1,296,524

35,309

 

Gold Fields Ltd.

4,389,518

30,558

 

FirstRand Ltd.

19,917,654

28,934

 

Sanlan Ltd.

15,001,046

24,618

 

Remgro Ltd.

3,215,083

23,641

 

ABSA Group Ltd.

2,158,929

22,588

 

Telkom South Africa Ltd.

2,024,179

21,969

 

Anglo Platinum Ltd.

504,539

20,847

 

Bidvest Group Ltd.

1,834,442

19,565

*

Harmony Gold

 

 

 

Mining Co., Ltd.

2,419,671

17,697

 

Tiger Brands Ltd.

1,164,925

16,888

 

Shoprite Holdings Ltd.

3,073,935

16,226

 

African Bank

 

 

 

Investments Ltd.

5,410,902

14,836

 

Nedbank Group Ltd.

1,493,754

14,500

 

Murray & Roberts

 

 

 

Holdings Ltd.

2,104,377

14,247

 

Aveng Ltd.

2,841,443

14,048

 

ArcelorMittal

 

 

 

South Africa, Ltd.

1,426,348

13,482

 

Massmart Holdings Ltd.

1,428,607

12,815

 

RMB Holdings Ltd.

5,115,619

11,922

 

Pretoria Portland

 

 

 

Cement Co. Ltd.

3,851,748

11,857

 

Steinhoff International

 

 

 

Holdings Ltd.

7,592,727

11,068

 

Truworths

 

 

 

International Ltd.

3,063,899

10,409

 

Sappi Ltd.

1,552,879

9,573

 

African Rainbow

 

 

 

Minerals Ltd.

818,497

8,375

 

Barloworld Ltd.

1,430,713

8,360

 

Kumba Iron Ore Ltd.

568,627

7,488

 

Imperial Holdings Ltd.

1,185,254

6,768

 

73

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Investec Ltd.

1,366,783

6,743

 

Woolworths Holdings Ltd.

5,818,582

6,717

*

Aspen Pharmacare

 

 

 

Holdings Ltd.

1,836,684

6,424

 

Reunert Ltd.

1,263,511

6,375

 

Foschini Ltd.

1,539,943

6,335

 

Exxaro Resources Ltd.

879,424

5,805

 

Network Healthcare

 

 

 

Holdings Ltd.

7,877,570

5,533

 

Liberty Group Ltd.

814,082

5,119

 

Pick’n Pay Stores Ltd.

1,610,718

5,092

 

Northam Platinum Ltd.

930,049

2,923

 

Reinet Investments

 

 

 

SCA ZAR Line

2,033,857

2,580

 

 

 

945,653

South Korea (13.6%)

 

 

 

Samsung

 

 

 

Electronics Co., Ltd.

636,904

268,521

 

POSCO

259,043

71,348

2

Samsung

 

 

 

Electronics Co., Ltd. GDR

289,516

59,771

 

KT & G Corp.

794,870

51,018

^

Hyundai Motor Co., Ltd.

1,086,598

50,210

^

LG Electronics Inc.

663,704

49,553

 

POSCO ADR

691,188

46,441

 

Shinhan Financial

 

 

 

Group Co. Ltd.

1,834,459

44,630

*

KB Financial Group, Inc.

1,670,634

41,412

^

Hyundai Heavy

 

 

 

Industries Co., Inc.

294,730

38,937

 

Samsung

 

 

 

Electronics Co., Ltd. Pfd.

144,894

38,051

 

Samsung Fire &

 

 

 

Marine Insurance Co.

269,627

35,711

 

Shinsegae Co., Ltd.

99,711

34,997

 

Samsung Corp.

935,193

29,966

*

NHN Corp.

274,076

29,168

 

SK Telecom Co., Ltd.

169,251

26,863

 

LG Corp.

668,042

26,737

 

SK Energy Co., Ltd.

422,929

24,331

 

Korea Electric Power Corp.

1,207,311

23,990

 

Hyundai Mobis

400,387

23,515

 

LG. Philips LCD Co., Ltd.

1,258,496

23,333

 

LG Chem Ltd.

370,410

22,487

*,^

Hynix Semiconductor Inc.

2,261,950

19,379

^

Samsung

 

 

 

Securities Co. Ltd.

358,087

18,212

 

KT Corp.

700,674

17,836

*

KB Financial Group, Inc.

718,877

17,692

 

SK Telecom Co., Ltd. ADR

1,022,354

17,595

^

Samsung Heavy

 

 

 

Industries Co., Ltd.

1,139,260

17,545

 

SK Holdings Co Ltd

247,241

16,583

^

S-Oil Corp.

321,704

16,299

^

Hyundai Engineering &

 

 

 

Construction Co., Ltd.

352,293

14,465

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Hana Financial Group Inc.

910,460

14,459

^

DC Chemical Co., Ltd.

86,337

14,120

 

Shinhan Financial

 

 

 

Group Co., Ltd. ADR

271,963

13,527

*,^

Samsung SDI Co. Ltd.

240,876

13,525

^

Samsung

 

 

 

Electro-Mechanics Co.

420,878

12,396

 

Korea Electric Power Corp.

 

 

 

ADR

1,237,534

12,252

*

Korea Telecom Freetel

553,389

11,604

 

Hyundai Steel Co.

399,098

11,579

 

Hyundai Development Co.

424,886

11,498

*,^

Kia Motors

1,339,474

11,284

^

GS Engineering &

 

 

 

Construction Corp.

232,546

11,045

 

Cheil Industrial, Inc.

333,011

10,869

 

Korea Exchange Bank

1,849,560

10,288

^

Amorepacific Corp.

22,524

9,900

 

Lotte Shopping Co., Ltd.

71,617

9,798

^

Doosan Heavy Industries

 

 

 

and Construction Co., Ltd.

220,748

9,728

 

LG Household &

 

 

 

Health Care Ltd.

65,941

9,420

 

Woori Finance

 

 

 

Holdings Co., Ltd.

1,696,480

9,104

 

Samsung Engineering

 

 

 

Co., Ltd.

223,527

8,940

^

Daewoo Engineering &

 

 

 

Construction Co., Ltd.

1,265,914

8,787

 

Daewoo Securities

 

 

 

Co., Ltd.

893,520

8,498

^

Mirae Asset Securities

 

 

 

Co., Ltd.

160,130

7,998

^

Samsung Techwin

 

 

 

Co., Ltd.

377,084

7,993

 

Kangwon Land Inc.

757,938

7,757

 

Industrial Bank of Korea

1,328,690

7,638

 

GS Holdings Corp.

371,318

7,412

 

Hyundai Mipo Dockyard

 

 

 

Co., Ltd.

84,101

7,221

 

Kumkang Korea Chemical

 

 

 

Co., Ltd.

36,888

7,198

 

Korean Air Co. Ltd.

251,134

7,107

 

LG Telecom Ltd.

994,245

7,087

 

Woongjin Coway Co., Ltd.

341,069

7,018

 

KT Corp. ADR

524,012

6,576

^

Samsung Card Co. Ltd.

270,020

6,372

 

Daewoo Shipbuilding &

 

 

 

Marine Engineering

 

 

 

Co., Ltd.

670,512

6,317

 

Hankook Tire Co. Ltd.

639,586

6,191

 

Korea Gas Corp.

164,212

6,184

*

CJ Cheiljedang Corp.

51,707

6,021

^

Hyundai Securities Co.

966,271

5,927

 

Korea Investment Holdings

 

 

 

Co., Ltd.

280,752

5,761

 

74

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Daelim Industrial Co.

196,093

5,661

^

Woori Investment &

 

 

 

Securities Co., Ltd.

603,191

5,635

^

Hanjin Shipping Co., Ltd.

417,070

5,486

 

LS Cable Ltd.

121,859

5,147

*,^

STX Pan Ocean Co., Ltd.

7,246,600

5,119

*,^

Doosan Corp.

70,318

5,100

 

Hanwha Corp.

319,826

5,012

 

Hyundai Department

 

 

 

Store Co., Ltd.

101,944

4,982

*

Hite Brewery Co., Ltd.

36,109

4,825

 

Pusan Bank

887,699

4,535

 

Daegu Bank

891,295

4,532

^

Doosan Infracore Co., Ltd.

517,782

4,410

 

Dongkuk Steel Mill

 

 

 

Co., Ltd.

265,032

4,310

 

Lotte Confectionery

 

 

 

Co., Ltd.

5,008

4,274

 

Honam Petrochemical Corp.

103,635

4,242

 

LG Dacom Corp.

294,480

4,163

 

S1 Corp.

120,480

4,095

^

Hyosung Corp.

168,879

4,023

 

Hyundai Motor Co., Ltd.

 

 

 

2nd Pfd.

259,077

3,906

 

Daewoo International Corp.

338,347

3,751

^

STX Shipbuilding Co., Ltd.

321,357

3,716

*

SK Networks Co., Ltd.

506,680

3,225

 

LG Electronics Inc. Pfd.

119,679

3,198

^

Hanjin Heavy Industries

 

 

 

& Construction Co., Ltd.

223,327

3,177

^

Korea Zinc Co., Ltd.

62,079

3,111

 

Korea Line Corp.

47,877

2,568

 

Dongbu Insurance Co., Ltd.

245,292

2,497

 

Taihan Electric Wire

 

 

 

Co., Ltd.

173,872

2,478

 

Hanwha Chemical Corp.

536,770

2,329

 

Tong Yang Investment Bank

549,484

2,266

^

Kumho Industrial Co., Ltd.

167,783

1,535

 

 

 

1,696,303

Taiwan (11.5%)

 

 

 

Taiwan Semiconductor

 

 

 

Manufacturing

 

 

 

Co., Ltd.

108,283,231

157,558

 

Hon Hai Precision

 

 

 

Industry Co., Ltd.

39,926,812

96,371

 

Taiwan Semiconductor

 

 

 

Manufacturing Co., Ltd.

 

 

 

ADR

7,086,817

58,537

 

MediaTek Inc.

6,174,057

55,291

 

Chunghwa Telecom

 

 

 

Co., Ltd.

30,620,142

50,662

 

High Tech

 

 

 

Computer Corp.

4,119,436

48,829

 

Nan Ya Plastic Corp.

34,324,291

47,569

 

China Steel Corp.

65,047,369

46,977

 

Formosa Plastic Corp.

27,743,289

46,820

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Cathay Financial

 

 

 

Holding Co.

40,508,202

43,505

 

Asustek Computer Inc.

25,605,898

36,677

 

Formosa Chemicals &

 

 

 

Fibre Corp.

19,166,276

30,984

 

AU Optronics Corp.

38,658,737

26,994

 

Delta Electronics Inc.

10,441,535

23,696

 

Acer Inc.

17,422,737

22,473

 

United

 

 

 

Microelectronics Corp.

71,242,970

19,562

 

Fuhwa Financial

 

 

 

Holdings Co., Ltd.

49,522,773

19,374

 

Formosa

 

 

 

Petrochemical Corp.

8,377,000

19,139

 

Compal Electronics Inc.

25,620,501

18,389

 

Fubon Financial Holding

 

 

 

Co., Ltd.

29,509,100

17,898

 

Uni-President

 

 

 

Enterprises Co.

20,631,609

17,636

 

Taiwan Cellular Corp.

12,425,485

17,179

 

Chinatrust

 

 

 

Financial Holding

57,044,153

16,295

 

Siliconware Precision

 

 

 

Industries Co.

15,584,860

16,087

 

Mega Financial

 

 

 

Holding Co. Ltd.

57,989,224

16,043

 

Chunghwa

 

 

 

Telecom Co., Ltd.

899,012

14,798

 

Quanta Computer Inc.

13,714,401

14,436

 

First Financial Holding

 

 

 

Co., Ltd.

30,116,597

14,203

 

China Development

 

 

 

Financial Holding Corp.

62,951,785

12,373

 

Hau Nan Financial

 

 

 

Holdings Co., Ltd.

22,593,708

11,906

 

Far EasTone

 

 

 

Telecommunications

 

 

 

Co., Ltd.

11,123,043

11,786

 

Taiwan Cooperative Bank

23,083,450

11,093

 

Chi Mei

 

 

 

Optoelectronics Corp.

29,767,999

10,951

 

Far Eastern Textile Ltd.

18,733,852

10,873

 

Chang Hwa

 

 

 

Commercial Bank

26,831,094

10,278

^

United Microelectronics

 

 

 

Corp. ADR

4,182,987

10,248

 

Advanced

 

 

 

Semiconductor

 

 

 

Engineering Inc.

23,796,400

10,133

 

Taiwan Cement Corp.

19,641,883

10,086

 

Innolux Display Corp.

12,755,689

9,562

 

SinoPac Holdings

42,462,214

9,002

 

Foxconn Technology

 

 

 

Co., Ltd.

3,517,313

8,619

 

Lite-On

 

 

 

Technology Corp.

13,780,910

8,605

 

75

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Catcher Technology

 

 

 

Co., Ltd.

3,358,821

8,528

 

Synnex Technology

 

 

 

International Corp.

6,289,201

8,164

 

President Chain

 

 

 

Store Corp.

3,475,985

8,070

 

Shin Kong Financial

 

 

 

Holdings Co.

28,027,822

7,413

 

Asia Cement Corp.

12,398,097

7,346

 

AU Optronics Corp. ADR

1,009,960

6,969

 

Wistron Corp.

8,651,653

6,842

 

Pou Chen Corp.

14,279,432

6,509

 

Largan Precision Co., Ltd.

627,074

6,396

*

Powerchip

 

 

 

Semiconductor Corp.

52,467,716

6,139

 

Taiwan Fertilizer Co., Ltd.

4,841,000

5,974

 

Cheng Shin Rubber

 

 

 

Industry Co., Ltd.

5,290,987

5,898

 

HannStar Display Corp.

30,893,202

5,624

 

Macronix International

 

 

 

Co., Ltd.

19,631,511

5,478

 

Powertech

 

 

 

Technology Inc.

3,699,300

5,226

 

Chunghwa Picture

 

 

 

Tubes, Ltd.

50,819,331

5,149

 

E.Sun Financial

 

 

 

Holding Co., Ltd.

20,807,302

4,837

*

Tatung Co., Ltd.

25,960,000

4,609

 

Taishin

 

 

 

Financial Holdings

30,803,678

4,598

 

Siliconware Precision

 

 

 

Industries Co. ADR

806,911

4,551

 

Realtek

 

 

 

Semiconductor Corp.

2,944,710

4,417

 

Walsin Lihwa Corp.

18,179,970

4,216

 

Epistar Corp.

3,567,414

4,170

 

Evergreen Marine Corp.

7,638,879

3,925

 

KGI Securities Co., Ltd.

16,387,000

3,798

 

Motech Industries Inc.

1,393,204

3,796

 

RichTek Technology Corp.

793,600

3,744

 

Novatek

 

 

 

Microelectronics

 

 

 

Corp., Ltd.

3,317,415

3,678

 

U-Ming Marine

 

 

 

Transport Corp.

3,116,600

3,638

 

Tung Ho Enterprise Corp.

5,525,000

3,591

 

Transcend Information Inc.

2,116,544

3,583

 

Formosa Taffeta Co., Ltd.

6,042,868

3,561

 

Inventec Co., Ltd.

10,985,796

3,443

 

Tripod Technology Corp.

2,807,710

3,431

 

Unimicron

 

 

 

Technology Corp.

6,083,754

3,375

 

Wan Hai Lines Ltd.

7,956,538

3,334

*

Nanya Technology Corp.

18,613,397

3,305

 

Polaris Securities

 

 

 

Co., Ltd.

14,696,475

3,278

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

EVA Airways Corp.

13,303,879

3,226

 

Nan Ya Printed Circuit

 

 

 

Board Corp.

1,354,670

3,197

 

Cheng Uei Precision

 

 

 

Industry Co., Ltd.

2,309,319

3,184

 

Advantech Co., Ltd.

2,277,725

3,178

 

Everlight Electronics

 

 

 

Co., Ltd.

2,059,812

3,113

 

Teco Electric &

 

 

 

Machinery Co., Ltd.

12,879,000

3,101

 

Mitac International Corp.

8,363,288

3,095

*

Taiwan Business Bank

15,175,000

2,975

 

Taiwan Glass

 

 

 

Industrial Corp.

6,093,361

2,956

*

China Airlines

11,252,246

2,693

 

Sino-American Silicon

 

 

 

Products, Inc.

1,272,555

2,667

*

ProMOS

 

 

 

Technologies Inc.

40,405,000

2,662

*

CMC Magnetics Corp.

18,990,700

2,608

 

Far Eastern Department

 

 

 

Stores Ltd.

5,751,200

2,601

 

Advanced Semiconductor

 

 

 

Engineering Inc. ADR

1,195,195

2,594

 

D-Link Corp.

3,760,013

2,574

 

Wafer Works Corp.

1,454,067

2,496

 

Yageo Corp.

15,974,520

2,464

 

Yang Ming

 

 

 

Marine Transport

8,922,450

2,460

 

Taiwan Secom Corp., Ltd.

1,957,846

2,404

 

Eternal Chemical Co., Ltd.

4,533,996

2,368

 

Qisda Corp.

9,616,928

2,330

*

Winbond

 

 

 

Electronics Corp.

22,139,000

2,303

 

Pan-International

 

 

 

Industrial Co., Ltd.

2,592,650

2,254

 

Yulon Motor Co., Ltd.

5,418,128

2,168

 

Feng Hsin Iron &

 

 

 

Steel Co., Ltd.

3,013,310

2,114

 

Firich Enterprises Co., Ltd.

813,395

2,108

 

Kinsus Interconnect

 

 

 

Technology Corp.

1,838,233

2,016

 

Zinwell Corporation

1,872,135

2,005

 

Vanguard International

 

 

 

Semiconductor Corp.

6,491,396

1,919

 

Wintek Corp.

7,289,607

1,850

 

Asia Optical Co., Inc.

1,339,801

1,760

*

Mosel Vitelic Inc.

7,176,910

1,668

*

Via Technologies Inc.

6,512,379

1,577

*

Inotera Memories, Inc.

6,502,620

1,556

 

Inventec Appliances Corp.

1,589,909

1,529

 

China Motor Co., Ltd.

4,345,588

1,478

 

Cathay Construction Corp.

6,286,779

1,372

 

Compal

 

 

 

Communications, Inc.

2,051,374

1,279

 

76

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Farglory Land

 

 

 

Development Co., Ltd

1,496,000

934

*

Ya Hsin Industrial

 

 

 

Co., Ltd.

5,306,018

 

 

 

1,442,936

Thailand (1.4%)

 

 

 

PTT Public Co. Ltd.

 

 

 

(Foreign)

6,043,052

27,765

 

PTT Exploration and

 

 

 

Production Public

 

 

 

Co. Ltd. (Foreign)

8,314,873

20,797

 

Kasikornbank Public

 

 

 

Co. Ltd. (Foreign)

12,279,319

17,861

 

Bangkok Bank Public

 

 

 

Co., Ltd. (Foreign)

6,863,431

13,866

 

Advanced Info Service

 

 

 

Public Co., Ltd. (Foreign)

6,233,077

13,117

 

Siam Commercial Bank

 

 

 

Public Co. Ltd. (Foreign)

6,963,457

10,792

 

Siam Cement Public

 

 

 

Co. Ltd. (Foreign)

2,422,017

7,326

*

Bangkok Bank Public

 

 

 

Co., Ltd. (Local)

3,549,543

7,141

*

Bank of Ayudhya PLC

 

 

 

(Local)

18,940,765

5,566

 

IRPC Public Co., Ltd.

 

 

 

(Foreign)

67,767,960

4,418

 

Banpu Public Co. Ltd.

 

 

 

(Foreign)

906,575

4,340

*

Total Access

 

 

 

Communication Public

 

 

 

Co. Ltd.

5,222,682

3,733

 

Thai Oil Public Co., Ltd.

 

 

 

(Foreign)

6,004,400

3,597

 

C.P. 7-Eleven Public

 

 

 

Co. Ltd. (Foreign)

15,782,900

3,484

 

BEC World Public

 

 

 

Co. Ltd. (Foreign)

6,339,530

3,034

 

PTT Chemical Public

 

 

 

Co., Ltd. (Foreign)

2,524,733

2,536

 

Krung Thai Bank Public

 

 

 

Co. Ltd. (Foreign)

21,466,731

2,511

*

Siam Cement Public

 

 

 

Co. Ltd. (Local)

846,988

2,490

 

PTT Aromatics &

 

 

 

Refining Public Co. Ltd.

 

 

 

(Foreign)

8,530,659

2,468

 

Ratchaburi Electricity

 

 

 

Generating Holding

 

 

 

Public Co., Ltd.

2,757,000

2,455

*

Thai Military Bank Public

 

 

 

Co., Ltd. (Foreign)

148,854,344

2,421

 

Glow Energy Public

 

 

 

Co. Ltd. (Foreign)

3,786,300

2,180

 

Land and Houses Public

 

 

 

Co. Ltd. (Foreign)

19,489,147

2,098

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Banpu Public Co. Ltd.

 

 

 

(Local)

391,432

1,841

 

Airports of Thailand

 

 

 

Public Co. Ltd. (Foreign)

3,162,956

1,732

 

Central Pattana

 

 

 

Public Co. Ltd. (Foreign)

5,007,200

1,348

*

PTT Public Co., Ltd. (Local)

108,500

498

*

Advanced Info Service

 

 

 

Public Co., Ltd. (Local)

162,000

341

*

Siam Commercial Bank

 

 

 

Public Co. Ltd. (Local)

146,600

227

*

Central Pattana Public

 

 

 

Co. Ltd. (Local)

457,700

123

*

Airports of Thailand Public

 

 

 

Co. Ltd. (Local)

220,200

121

*

Glow Energy Public

 

 

 

Co. Ltd. (Local)

199,200

115

*

TMB Bank Public Co., Ltd.

6,957,000

113

*

PTT Aromatics & Refining

 

 

 

Public Co. Ltd. (Local)

370,000

107

*

BEC World Public

 

 

 

Co. Ltd. (Local)

173,000

83

*

Krung Thai Bank Public

 

 

 

Co. Ltd. (Local)

595,000

68

 

 

 

172,713

Turkey (1.6%)

 

 

*

Turkiye Garanti Bankasi

 

 

 

A.S.

15,246,880

25,608

 

Turkcell Iletisim

 

 

 

Hizmetleri A.S.

4,703,605

23,610

 

Akbank T.A.S.

6,573,916

22,579

 

Turkiye Is Bankasi A.S.

 

 

 

C Shares

7,108,407

20,209

 

Anadolu Efes Biracilik ve

 

 

 

Malt Sanayii A.S.

1,609,697

13,629

 

Eregli Demir ve Celik

 

 

 

Fabrikalari A.S.

4,169,634

12,853

 

Tupras-Turkiye Petrol

 

 

 

Rafinerileri A.S.

913,140

11,531

 

Haci Omer Sabanci

 

 

 

Holding A.S.

3,422,134

8,311

*

Yapi ve Kredi Bankasi A.S.

6,323,430

8,019

*

Turk Telekomunikasyon

 

 

 

A.S.

3,786,690

8,007

 

Turkiye Halk Bankasi A.S.

2,363,378

6,467

 

Enka Insaat ve Sanayi A.S.

1,723,687

6,458

*

KOC Holding A.S.

3,092,397

5,770

 

Turkiye Vakiflar Bankasi

 

 

 

T.A.O.

5,763,603

5,629

*

BIM Birlesik Magazalar

 

 

 

A.S.

268,138

5,415

*

Dogan Sirketler Grubu

 

 

 

Holding A.S.

3,693,502

2,912

*

Asya Katilim Bankasi AS

3,091,213

2,712

*

Tekfen Holding A.S.

886,126

2,377

*

Coca-Cola Icecek A.S.

462,467

2,217

 

77

Emerging Markets Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Turk Sise ve Cam

 

 

 

Fabrikalari A.S.

2,427,982

1,974

 

Aksigorta A.S.

918,816

1,894

*

TAV Havalimanlari Holding

 

 

 

A.S.

764,759

1,859

*

Petkim Petrokimya Holding

 

 

 

A.S.

642,947

1,748

 

Ford Otomotiv Sanayi A.S.

487,644

1,534

 

Arcelik A.S.

923,671

1,311

 

Tofas Turk Otomobil

 

 

 

Fabrikasi A.S.

901,701

1,054

*

Dogan Yayin Holding A.S.

1,718,602

991

 

Migros Turk A.S.

1,729

19

 

 

 

206,697

Total Common Stocks

 

 

(Cost $17,143,464)

 

12,449,462

Temporary Cash Investments (5.7%)1

 

 

Money Market Fund (5.6%)

 

 

3,4

Vanguard Market

 

 

 

Liquidity Fund,

 

 

 

2.217%

707,689,488

707,689

 

 

 

Face

Market

 

Amount

Value

 

($000)

($000)

U.S. Agency Obligation (0.1%)

 

 

5,6 Federal Home Loan

 

 

Mortgage Corp.,

 

 

2.585%, 11/25/08

7,000

6,992

Total Temporary Cash Investments

 

 

(Cost $714,678)

 

714,681

Total Investments (105.3%)

 

 

(Cost $17,858,142)

 

13,164,143

Other Assets and Liabilities (–5.3%)

 

 

Other Assets

 

86,454

Liabilities4

 

(744,384)

 

 

(657,930)

Net Assets (100%)

 

12,506,213

 

 

78

Emerging Markets Stock Index Fund

 

At October 31, 2008, net assets consisted of:

 

 

Amount

 

($000)

Paid-in Capital

17,466,201

Undistributed Net Investment Income

540,785

Accumulated Net Realized Losses

(807,165)

Unrealized Appreciation (Depreciation)

 

Investment Securities

(4,693,999)

Futures Contracts

1,800

Foreign Currencies

(1,409)

Net Assets

12,506,213

 

 

Investor Shares—Net Assets

 

Applicable to 341,400,537 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

5,345,312

Net Asset Value Per Share—

 

Investor Shares

$15.66

 

 

Admiral Shares—Net Assets

 

Applicable to 73,085,578 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

1,507,842

Net Asset Value Per Share—

 

Admiral Shares

$20.63

 

 

Signal Shares—Net Assets

 

Applicable to 13,410,668 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

266,252

Net Asset Value Per Share—

 

Signal Shares

$19.85

 

 

 

Amount

 

($000)

Institutional Shares—Net Assets

 

Applicable to 56,455,422 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

887,021

Net Asset Value Per Share—

 

Institutional Shares

$15.71

 

 

ETF Shares—Net Assets

 

Applicable to 181,235,250 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

4,499,786

Net Asset Value Per Share—

 

ETF Shares

$24.83

 

 

See Note A in Notes to Financial Statements.

*

Non-income-producing security.

^

Part of security position is on loan to broker-dealers. The total value of securities on loan is $574,361,000.

1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 99.9% and 5.4%, respectively, of net assets.

2 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2008, the value of this security represented 0.5% of net assets.

3 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

4 Includes $632,927,000 of collateral received for securities on loan.

5 The issuer operates under a congressional charter; its securities are neither issued nor guaranteed by the U.S. government.

6 Securities with a value of $6,992,000 have been segregated as initial margin for open futures contracts.

ADR—American Depositary Receipt.

GDR—Global Depositary Receipt.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

79

Emerging Markets Stock Index Fund

 

Statement of Operations

 

 

Year Ended

 

October 31, 2008

 

($000)

Investment Income

 

Income

 

Dividends1

693,413

Interest2

973

Security Lending

13,902

Total Income

708,288

Expenses

 

The Vanguard Group—Note B

 

Investment Advisory Services

543

Management and Administrative—Investor Shares

22,714

Management and Administrative—Admiral Shares

2,693

Management and Administrative—Signal Shares

374

Management and Administrative—Institutional Shares

479

Management and Administrative—ETF Shares

5,157

Marketing and Distribution—Investor Shares

2,943

Marketing and Distribution—Admiral Shares

530

Marketing and Distribution—Signal Shares

80

Marketing and Distribution—Institutional Shares

310

Marketing and Distribution—ETF Shares

1,649

Custodian Fees

20,906

Auditing Fees

41

Shareholders’ Reports—Investor Shares

333

Shareholders’ Reports—Admiral Shares

15

Shareholders’ Reports—Signal Shares

4

Shareholders’ Reports—Institutional Shares

Shareholders’ Reports—ETF Shares

223

Trustees’ Fees and Expenses

31

Total Expenses

59,025

Expenses Paid Indirectly

(375)

Net Expenses

58,650

Net Investment Income

649,638

Realized Net Gain (Loss)

 

Investment Securities Sold

194,432

Futures Contracts

(15,502)

Foreign Currencies

(15,685)

Realized Net Gain (Loss)

163,245

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities

(16,915,195)

Futures Contracts

1,800

Foreign Currencies

(2,454)

Change in Unrealized Appreciation (Depreciation)

(16,915,849)

Net Increase (Decrease) in Net Assets Resulting from Operations

(16,102,966)

 

 

1 Dividends are net of foreign withholding taxes of $61,493,000.

2 Interest income from an affiliated company of the fund was $796,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

80

Emerging Markets Stock Index Fund

 

Statement of Changes in Net Assets

 

 

Year Ended October 31,

 

2008

2007

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

649,638

372,700

Realized Net Gain (Loss)

163,245

174,147

Change in Unrealized Appreciation (Depreciation)

(16,915,849)

8,817,938

Net Increase (Decrease) in Net Assets Resulting from Operations

(16,102,966)

9,364,785

Distributions

 

 

Net Investment Income

 

 

Investor Shares

(229,894)

(130,073)

Admiral Shares

(66,571)

(30,176)

Signal Shares

(8,343)

Institutional Shares

(24,830)

(11,028)

ETF Shares

(111,980)

(34,662)

Realized Capital Gain

 

 

Investor Shares

Admiral Shares

Signal Shares

Institutional Shares

ETF Shares

Total Distributions

(441,618)

(205,939)

Capital Share Transactions

 

 

Investor Shares

(954,191)

1,679,248

Admiral Shares

218,311

699,959

Signal Shares

207,807

330,912

Institutional Shares

471,828

356,607

ETF Shares

3,320,651

2,727,702

Net Increase (Decrease) from Capital Share Transactions

3,264,406

5,794,428

Total Increase (Decrease)

(13,280,178)

14,953,274

Net Assets

 

 

Beginning of Period

25,786,391

10,833,117

End of Period1

12,506,213

25,786,391

 

 

1 Net Assets—End of Period includes undistributed net investment income of $540,785,000 and $344,566,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

81

Emerging Markets Stock Index Fund

 

Financial Highlights

 

Investor Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$36.78

$22.05

$16.91

$12.88

$11.04

Investment Operations

 

 

 

 

 

Net Investment Income

.780

.6041

.396

.307

.263

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments2

(21.313)

14.522

5.059

3.982

1.749

Total from Investment Operations

(20.533)

15.126

5.455

4.289

2.012

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.587)

(.396)

(.315)

(.259)

(.172)

Distributions from Realized Capital Gains

Total Distributions

(.587)

(.396)

(.315)

(.259)

(.172)

Net Asset Value, End of Period

$15.66

$36.78

$22.05

$16.91

$12.88

 

 

 

 

 

 

Total Return3

–56.66%

69.59%

32.55%

33.66%

18.43%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$5,345

$14,150

$7,202

$4,937

$2,556

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.32%

0.37%

0.42%

0.45%

0.48%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

2.81%

2.24%

2.20%

2.48%

2.44%

Portfolio Turnover Rate4

20%

9%

26%

15%

11%

 

 

1 Calculated based on average shares outstanding.

2 Includes increases from redemption fees of $.02, $.01, $.01, $.00, and $.00.

3 Total returns do not reflect the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases; the 2% fee assessed until March 23, 2005, on redemptions of shares purchased on or after June 27, 2003, and held for less than two months; the 0.25% (0.50% prior to June 26, 2008) fee on all other redemptions; or the account service fee that may be applicable to certain accounts with balanced below $10,000.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

82

Emerging Markets Stock Index Fund

 

Financial Highlights

 

Admiral Shares

 

 

 

 

 

 

June 23,

 

 

Year Ended

20061 to

 

October 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

2006

Net Asset Value, Beginning of Period

$48.47

$29.03

$25.00

Investment Operations

 

 

 

Net Investment Income

1.079

.8532

.222

Net Realized and Unrealized Gain (Loss) on Investments3

(28.099)

19.121

3.808

Total from Investment Operations

(27.020)

19.974

4.030

Distributions

 

 

 

Dividends from Net Investment Income

(.820)

(.534)

Distributions from Realized Capital Gains

Total Distributions

(.820)

(.534)

Net Asset Value, End of Period

$20.63

$48.47

$29.03

 

 

 

 

Total Return4

–56.63%

69.82%

16.12%

 

 

 

 

Ratios/Supplemental Data

 

 

 

Net Assets, End of Period (Millions)

$1,508

$3,514

$1,491

Ratio of Total Expenses to Average Net Assets

0.20%

0.25%

0.30%5

Ratio of Net Investment Income to Average Net Assets

2.93%

2.36%

2.32%5

Portfolio Turnover Rate6

20%

9%

26%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Includes increases from redemption fees of $.03, $.01, and $.01.

4 Total returns do not reflect the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases and redemptions.

5 Annualized.

6 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

83

Emerging Markets Stock Index Fund

 

Financial Highlights

 

Signal Shares

 

 

 

Year

Jan. 19,

 

Ended

20071 to

 

Oct. 31,

Oct. 31,

For a Share Outstanding Throughout Each Period

2008

2007

Net Asset Value, Beginning of Period

$46.61

$30.38

Investment Operations

 

 

Net Investment Income

1.029

.5802

Net Realized and Unrealized Gain (Loss) on Investments3

(27.029)

15.650

Total from Investment Operations

(26.000)

16.230

Distributions

 

 

Dividends from Net Investment Income

(.760)

Distributions from Realized Capital Gains

Total Distributions

(.760)

Net Asset Value, End of Period

$19.85

$46.61

 

 

 

Total Return4

–56.64%

53.42%

 

 

 

Ratios/Supplemental Data

 

 

Net Assets, End of Period (Millions)

$266

$385

Ratio of Total Expenses to Average Net Assets

0.20%

0.25%5

Ratio of Net Investment Income to Average Net Assets

2.93%

2.36%5

Portfolio Turnover Rate6

20%

9%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Includes increases from redemption fees of $.02 and $.00.

4 Total returns do not reflect the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases and redemptions.

5 Annualized.

6 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

84

Emerging Markets Stock Index Fund

 

Financial Highlights

 

Institutional Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$36.90

$22.11

$16.95

$12.90

$11.05

Investment Operations

 

 

 

 

 

Net Investment Income

.835

.6861

.443

.344

.287

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments2

(21.393)

14.533

5.059

3.982

1.749

Total from Investment Operations

(20.558)

15.219

5.502

4.326

2.036

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.632)

(.429)

(.342)

(.276)

(.186)

Distributions from Realized Capital Gains

Total Distributions

(.632)

(.429)

(.342)

(.276)

(.186)

Net Asset Value, End of Period

$15.71

$36.90

$22.11

$16.95

$12.90

 

 

 

 

 

 

Total Return3

–56.61%

69.90%

32.78%

33.92%

18.64%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$887

$1,463

$559

$468

$245

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.15%

0.20%

0.25%

0.25%

0.33%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

2.98%

2.41%

2.37%

2.64%

2.61%

Portfolio Turnover Rate4

20%

9%

26%

15%

11%

 

 

1 Calculated based on average shares outstanding.

2 Includes increases from redemption fees of $.01, $.01, $.01, $.00, and $.00.

3 Total returns do not reflect the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases; the 2% fee assessed until March 23, 2005, on redemptions of shares purchased on or after June 27, 2003, and held for less than two months; or the 0.25% (0.50% prior to June 26, 2008) fee on all other redemptions.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

85

Emerging Markets Stock Index Fund

 

Financial Highlights

 

ETF Shares

 

 

 

 

 

 

 

 

March 4,

 

 

 

 

20052 to

 

Year Ended October 31,

Oct. 31,

For a Share Outstanding Throughout Each Period1

2008

2007

2006

2005

Net Asset Value, Beginning of Period

$58.31

$34.96

$26.81

$25.28

Investment Operations

 

 

 

 

Net Investment Income

1.303

1.0653

.667

.435

Net Realized and Unrealized Gain (Loss) on Investments4

(33.798)

22.955

8.022

1.095

Total from Investment Operations

(32.495)

24.020

8.689

1.530

Distributions

 

 

 

 

Dividends from Net Investment Income

(.985)

(.670)

(.539)

Distributions from Realized Capital Gains

Total Distributions

(.985)

(.670)

(.539)

Net Asset Value, End of Period

$24.83

$58.31

$34.96

$26.81

 

 

 

 

 

Total Return

–56.62%

69.78%

32.74%

6.05%

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

Net Assets, End of Period (Millions)

$4,500

$6,275

$1,582

$375

Ratio of Total Expenses to Average Net Assets

0.20%

0.25%

0.30%

0.30%5

Ratio of Net Investment Income to Average Net Assets

2.93%

2.36%

2.32%

2.59%5

Portfolio Turnover Rate6

20%

9%

26%

15%

 

 

1 Adjusted to reflect a 2-for-1 share split as of the close of business on June 13, 2008.

2 Inception.

3 Calculated based on average shares outstanding.

4 Includes increases from redemption fees of $.02, $.03, $.03, and $.00.

5 Annualized.

6 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

86

Emerging Markets Stock Index Fund

 

Notes to Financial Statements

 

Vanguard Emerging Markets Stock Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. The fund offers five classes of shares: Investor Shares, Admiral Shares, Signal Shares, Institutional Shares, and ETF Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, tenure, and account-size criteria. Signal Shares are designed for institutional investors who meet certain administrative, service, and account-size criteria. Institutional Shares are designed for investors who meet certain administrative and service criteria and invest a minimum of $5 million. ETF Shares are listed for trading on the NYSE Arca, Inc.; they can be purchased and sold through a broker.

 

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.

 

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

 

3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, enhancing returns, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The fund may seek to enhance returns by using futures contracts instead of the underlying securities when futures are believed to be priced more attractively than the underlying securities. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market.

 

87

Emerging Markets Stock Index Fund

 

Futures contracts are valued at their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

 

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended October 31, 2005–2008), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

 

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

 

6. Security Lending: The fund may lend its securities to qualified institutional borrowers to earn additional income. Security loans are required to be secured at all times by collateral at least equal to the market value of securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability for the return of the collateral, during the period the securities are on loan. Security lending income represents the income earned on investing cash collateral, less expenses associated with the loan.

 

7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on capital share transactions are credited to paid-in capital.

 

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

 

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At October 31, 2008, the fund had contributed capital of $1,567,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 1.57% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

 

C. The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended October 31, 2008, custodian fee offset arrangements reduced the fund’s expenses by $375,000.

 

D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

 

88

Emerging Markets Stock Index Fund

 

During the year ended October 31, 2008, the fund realized net foreign currency losses of $15,685,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized losses to undistributed net investment income. The fund’s realized losses for the year ended October 31, 2008, include a refund for taxes paid on Indian securities of $67,000, which is treated as an increase to taxable income; accordingly, this amount has been reclassified from accumulated net realized losses to undistributed net investment income.

 

Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. During the year ended October 31, 2008, the fund realized gains on the sale of passive foreign investment companies of $3,817,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Unrealized appreciation of $41,815,000 on the fund’s passive foreign investment company holdings at October 31, 2007, has been distributed and is reflected in the balance of undistributed net investment income. Since October 31, 2007, the fund’s passive foreign investment company holdings have depreciated in value, reducing the amount of taxable income available for distribution as of October 31, 2008 by $38,708,000. Unrealized appreciation on the fund’s passive foreign investment company holdings at October 31, 2008, was $3,107,000.

 

During the year ended October 31, 2008, the fund realized $795,501,000 of net capital gains resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital.

 

For tax purposes, at October 31, 2008, the fund had $562,586,000 of ordinary income available for distribution. The fund had available realized losses of $643,327,000 to offset future net capital gains of $15,143,000 through October 31, 2012, $167,331,000 through October 31, 2014, and $460,853,000 through October 31, 2016.

 

At October 31, 2008, the cost of investment securities for tax purposes was $18,025,084,000. Net unrealized depreciation of investment securities for tax purposes was $4,860,941,000, consisting of unrealized gains of $1,104,758,000 on securities that had risen in value since their purchase and $5,965,699,000 in unrealized losses on securities that had fallen in value since their purchase.

 

At October 31, 2008, the aggregate settlement value of open futures contracts expiring in November 2008 and the related unrealized appreciation (depreciation) were:

 

 

 

 

($000)

 

Number of

Aggregate

Unrealized

 

Long (Short)

Settlement

Appreciation

Futures Contracts

Contracts

Value

(Depreciation)

MSCI Taiwan Index

1,800

33,606

1,800

 

The fund had net unrealized foreign currency losses of $1,409,000 resulting from the translation of other assets and liabilities at October 31, 2008.

 

E. During the year ended October 31, 2008, the fund purchased $9,315,325,000 of investment securities and sold $5,904,943,000 of investment securities, other than temporary cash investments.

 

89

Emerging Markets Stock Index Fund

 

F. Capital share transactions for each class of shares were:

 

 

 

 

 

Year Ended October 31,

 

 

2008

 

2007

 

Amount

Shares

Amount

Shares

 

($000)

(000)

($000)

(000)

Investor Shares

 

 

 

 

Issued

3,872,977

135,857

3,408,393

122,527

Issued in Lieu of Cash Distributions

222,748

6,777

123,741

5,215

Redeemed1

(5,049,916)

(185,897)

(1,852,886)

(69,648)

Net Increase (Decrease)—Investor Shares

(954,191)

(43,263)

1,679,248

58,094

Admiral Shares

 

 

 

 

Issued

997,071

24,577

1,276,261

35,934

Issued in Lieu of Cash Distributions

58,820

1,359

26,534

849

Redeemed1

(837,580)

(25,354)

(602,836)

(15,634)

Net Increase (Decrease)—Admiral Shares

218,311

582

699,959

21,149

Signal Shares

 

 

 

 

Issued

301,803

8,027

340,696

8,511

Issued in Lieu of Cash Distributions

7,172

172

Redeemed1

(101,168)

(3,051)

(9,784)

(248)

Net Increase (Decrease)—Signal Shares

207,807

5,148

330,912

8,263

Institutional Shares

 

 

 

 

Issued

650,503

24,200

515,085

20,056

Issued in Lieu of Cash Distributions

16,639

505

9,287

391

Redeemed1

(195,314)

(7,891)

(167,765)

(6,075)

Net Increase (Decrease)—Institutional Shares

471,828

16,814

356,607

14,372

ETF Shares2

 

 

 

 

Issued

3,410,974

76,025

2,751,033

62,762

Issued in Lieu of Cash Distributions

Redeemed1

(90,323)

(2,400)

(23,331)

(400)

Net Increase (Decrease)—ETF Shares

3,320,651

73,625

2,727,702

62,362

 

 

1 Net of redemption fees of $14,015,000 and $7,194,000 (fund totals).

2 Shares adjusted to reflect a 2-for-1 split as of the close of business on June 13, 2008.

 

 

90

Emerging Markets Stock Index Fund

 

G. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

 

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

The following table summarizes the fund’s investments as of October 31, 2008, based on the inputs used to value them:

 

 

 

Investments

Futures

 

in Securities

Contracts

Valuation Inputs

($000)

($000)

Level 1—Quoted prices

3,813,389

1,800

Level 2—Other significant observable inputs

9,350,754

Level 3—Significant unobservable inputs

Total

13,164,143

1,800

 

 

91

Developed Markets Index Fund

 

Fund Profile

As of October 31, 2008

 

 

Portfolio Characteristics

 

 

Fund

Acquired Fund Fees and

 

Expenses (10/31/2007)1

0.22%

 

 

Sector Diversification (% of equity exposure)

 

 

Target

Broad

 

Fund2

Index3

Index4

Consumer Discretionary

10.5%

10.6%

9.0%

Consumer Staples

10.2

10.1

9.9

Energy

9.1

8.9

12.0

Financials

23.4

23.6

21.4

Health Care

9.9

9.7

9.7

Industrials

10.5

10.7

10.0

Information Technology

4.8

5.0

9.1

Materials

8.0

8.0

7.4

Telecommunication

 

 

 

Services

6.3

6.2

6.0

Utilities

7.3

7.2

5.5

 

 

Volatility Measures5

 

 

Fund Versus

Fund Versus

 

Target Index3

Broad Index4

R-Squared

0.98

0.97

Beta

0.97

0.88

 

 

Allocation to Underlying Vanguard Funds

 

 

 

European Stock Index Fund Investor Shares

67.0%

Pacific Stock Index Fund Investor Shares

33.0

 

 

Market Diversification (% of equity exposure)

 

 

Target

 

Fund2

Index3

United Kingdom

21.9%

22.0%

Japan

21.7

23.6

France

11.1

10.7

Germany

9.1

8.7

Switzerland

8.9

8.5

Australia

5.4

5.9

Spain

4.2

4.0

Italy

3.7

3.6

Netherlands

3.4

2.4

Sweden

2.0

2.0

Hong Kong

1.9

2.0

Finland

1.5

1.5

Singapore

1.0

1.0

Other Developed Markets

4.2

4.1

 

 

1 This figure—drawn from the prospectus dated October 14, 2008—represents a weighted average of the annualized expense ratios and any transaction fees charged by the underlying mutual funds (the “acquired” funds) in which the Developed Markets Index Fund invests. The Developed Markets Index Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2008, the acquired fund fees and expenses figure was 0.22%.

2 Reflects holdings of underlying funds.

3 MSCI EAFE Index.

4 MSCI All Country World Index ex USA.

5 For an explanation of R-squared, beta, and other terms used here, see the Glossary.

 

 

92

Developed Markets Index Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

Cumulative Performance: May 8, 2000–October 31, 2008

Initial Investment of $10,000

 


 

 

 

Average Annual Total Returns

 

 

Periods Ended October 31, 2008

Final Value of

 

 

 

Since

a $10,000

 

One Year

Five Years

Inception1

Investment

Developed Markets Index Fund2

–46.24%

3.84%

–0.97%

$9,204

MSCI All Country World Index ex USA

–48.27

5.05

0.31

10,265

MSCI EAFE Index

–46.62

3.60

–1.12

9,092

Average International Fund3

–47.97

2.81

–1.92

8,488

 

 

1 Performance for the fund and its comparative standards is calculated since the fund’s inception: May 8, 2000.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or the account service fee that may be applicable to certain accounts with balances below $10,000.

3 Derived from data provided by Lipper Inc.

 

 

93

Developed Markets Index Fund

 

Fiscal-Year Total Returns (%): May 8, 2000–October 31, 2008

 


 

Average Annual Total Returns: Periods Ended September 30, 2008

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

 

 

 

Since

 

Inception Date

One Year

Five Years

Inception

Developed Markets Index Fund1

5/8/2000

–29.17%

10.10%

1.80%

 

 

1 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or the account service fee that may be applicable to certain accounts with balances below $10,000.

Note: See Financial Highlights table for dividend and capital gains information.

 

 

94

Developed Markets Index Fund

 

Financial Statements

 

Statement of Net Assets

As of October 31, 2008

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

Market

 

 

Value

 

Shares

($000)

Investment Companies (100.2%)

 

 

International Stock Funds (99.7%)

 

 

Vanguard European Stock Index Fund Investor Shares

69,810,604

1,535,135

Vanguard Pacific Stock Index Fund Investor Shares

95,434,290

757,748

 

 

2,292,883

Money Market Fund (0.5%)

 

 

1 Vanguard Market Liquidity Fund, 2.217%

10,755,557

10,756

Total Investment Companies (Cost $2,842,181)

 

2,303,639

Other Assets and Liabilities (–0.2%)

 

 

Other Assets

 

8,693

Liabilities

 

(13,570)

 

 

(4,877)

Net Assets (100%)

 

 

Applicable to 295,016,266 outstanding $.001 par value shares of

 

 

beneficial interest (unlimited authorization)

 

2,298,762

Net Asset Value Per Share

 

$7.79

 

 

At October 31, 2008, net assets consisted of:

 

 

Amount

 

($000)

Paid-in Capital

2,896,845

Undistributed Net Investment Income

1,334

Accumulated Net Realized Losses

(60,875)

Unrealized Appreciation (Depreciation)

(538,542)

Net Assets

2,298,762

 

 

See Note A in Notes to Financial Statements.

1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

95

Developed Markets Index Fund

 

Statement of Operations

 

 

Year Ended

 

October 31, 2008

 

($000)

Investment Income

 

Income

 

Income Distributions Received

107,155

Net Investment Income—Note B

107,155

Realized Net Gain (Loss) on Investment Securities Sold

(60,515)

Change in Unrealized Appreciation (Depreciation) of Investment Securities

(1,992,254)

Net Increase (Decrease) in Net Assets Resulting from Operations

(1,945,614)

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

96

Developed Markets Index Fund

 

Statement of Changes in Net Assets

 

 

Year Ended October 31,

 

2008

2007

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

107,155

67,803

Realized Net Gain (Loss)

(60,515)

1,415

Change in Unrealized Appreciation (Depreciation)

(1,992,254)

681,973

Net Increase (Decrease) in Net Assets Resulting from Operations

(1,945,614)

751,191

Distributions

 

 

Net Investment Income

(107,258)

(66,258)

Realized Capital Gain1

(1,386)

(1,108)

Total Distributions

(108,644)

(67,366)

Capital Share Transactions

 

 

Issued

1,208,773

1,375,081

Issued in Lieu of Cash Distributions

98,662

60,616

Redeemed2

(930,804)

(715,040)

Net Increase (Decrease) from Capital Share Transactions

376,631

720,657

Total Increase (Decrease)

(1,677,627)

1,404,482

Net Assets

 

 

Beginning of Period

3,976,389

2,571,907

End of Period3

2,298,762

3,976,389

 

 

1 Includes fiscal 2008 and 2007 short-term gain distributions totaling $1,386,000 and $1,108,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.

2 The fund collected redemption fees of $298,000 and $202,000, which were reallocated proportionately to the funds in which it invests.

3 Net Assets—End of Period includes undistributed net investment income of $1,334,000 and $1,437,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

97

Developed Markets Index Fund

 

Financial Highlights

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$14.91

$12.15

$9.75

$8.43

$7.22

Investment Operations

 

 

 

 

 

Net Investment Income

.3691

.305

.219

.190

.143

Capital Gain Distributions Received

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(7.097)

2.759

2.400

1.320

1.210

Total from Investment Operations

(6.728)

3.064

2.619

1.510

1.353

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.387)

(.299)

(.219)

(.190)

(.143)

Distributions from Realized Capital Gains

(.005)

(.005)

Total Distributions

(.392)

(.304)

(.219)

(.190)

(.143)

Net Asset Value, End of Period

$7.79

$14.91

$12.15

$9.75

$8.43

 

 

 

 

 

 

Total Return2

–46.24%

25.67%

27.27%

18.07%

18.94%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$2,299

$3,976

$2,572

$1,623

$1,038

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0%3

0%

0%

0%

0%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

3.04%

2.05%

1.82%

1.77%

1.52%

Portfolio Turnover Rate

13%

7%

9%

10%

4%

 

 

1 Calculated based on average shares outstanding.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or the account service fee that may be applicable to certain accounts with balances below $10,000.

3 The acquired fund fees and expenses were 0.22%.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

98

Developed Markets Index Fund

 

Notes to Financial Statements

 

Vanguard Developed Markets Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund seeks to match the performance of its target index by investing in the European and Pacific Stock Index Funds. The fund’s indirect investments in foreign securities involve investment risks not normally associated with investing in securities of U.S. corporations.

 

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.

 

2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended October 31, 2005–2008), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

 

3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

 

4. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

 

B. Under a service agreement, The Vanguard Group furnishes investment advisory, corporate management, administrative, marketing, and distribution services to the fund. The service agreement provides that the fund’s expenses may be reduced or eliminated to the extent of savings realized by the Vanguard funds by the operation of the fund. Accordingly, all incremental expenses for services provided by Vanguard and all other expenses incurred by the fund during the year ended October 31, 2008, were borne by the funds in which the fund invests. The fund’s trustees and officers are also directors and officers of Vanguard and the funds in which the fund invests.

 

C. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

 

For tax purposes, at October 31, 2008, the fund had $1,285,000 of ordinary income available for distribution. The fund had available realized losses of $11,015,000 to offset future net capital gains through October 31, 2016.

 

At October 31, 2008, the cost of investment securities for tax purposes was $2,891,993,000. Net unrealized depreciation of investment securities for tax purposes was $588,354,000, consisting entirely of unrealized losses on securities that had fallen in value since their purchase.

 

D. During the year ended October 31, 2008, the fund purchased $816,948,000 of investment securities and sold $451,715,000 of investment securities, other than temporary cash investments.

 

99

Developed Markets Index Fund

 

E. Capital shares issued and redeemed were:

 

 

 

Year Ended October 31,

 

2008

2007

 

Shares

Shares

 

(000)

(000)

Issued

101,813

103,370

Issued in Lieu of Cash Distributions

7,287

4,803

Redeemed

(80,732)

(53,150)

Net Increase (Decrease) in Shares Outstanding

28,368

55,023

 

 

F. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

 

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

At October 31, 2008, 100% of the fund’s investments were valued based on Level 1 inputs.

 

 

100

Institutional Developed Markets Index Fund

 

Fund Profile

As of October 31, 2008

 

 

Portfolio Characteristics

 

 

Fund

Acquired Fund Fees and

 

Expenses (10/31/2007)1

0.09%

 

 

Sector Diversification (% of equity exposure)

 

 

Target

Broad

 

Fund2

Index3

Index4

Consumer Discretionary

10.5%

10.6%

9.0%

Consumer Staples

10.2

10.1

9.9

Energy

9.1

8.9

12.0

Financials

23.4

23.6

21.4

Health Care

9.9

9.7

9.7

Industrials

10.5

10.7

10.0

Information Technology

4.8

5.0

9.1

Materials

8.0

8.0

7.4

Telecommunication

 

 

 

Services

6.3

6.2

6.0

Utilities

7.3

7.2

5.5

 

 

Volatility Measures5

 

 

Fund Versus

Fund Versus

 

Target Index3

Broad Index4

R-Squared

0.98

0.97

Beta

0.97

0.88

 

 

Allocation to Underlying Vanguard Funds

 

 

 

European Stock Index Fund Institutional Shares

67.0%

Pacific Stock Index Fund Institutional Shares

33.0

 

 

Market Diversification (% of equity exposure)

 

 

Target

 

Fund2

Index3

United Kingdom

21.9%

22.0%

Japan

21.7

23.6

France

11.1

10.7

Germany

9.1

8.7

Switzerland

8.9

8.5

Australia

5.4

5.9

Spain

4.2

4.0

Italy

3.7

3.6

Netherlands

3.4

2.4

Sweden

2.0

2.0

Hong Kong

1.9

2.0

Finland

1.5

1.5

Singapore

1.0

1.0

Other Developed Markets

4.2

4.1

 

 

1 This figure—drawn from the prospectus dated February 27, 2008—represents a weighted average of the annualized expense ratios and any transaction fees charged by the underlying mutual funds (the “acquired” funds) in which the Institutional Developed Markets Index Fund invests. The Institutional Developed Markets Index Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2008, the acquired fund fees and expenses figure was 0.09%.

2 Reflects holdings of underlying funds.

3 MSCI EAFE Index.

4 MSCI All Country World Index ex USA.

5 For an explanation of R-squared, beta, and other terms used here, see the Glossary.

 

 

101

Institutional Developed Markets Index Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

Cumulative Performance: June 1, 2000–October 31, 2008

Initial Investment of $5,000,000

 


 

 

 

 

Average Annual Total Returns

 

 

Periods Ended October 31, 2008

Final Value of

 

 

 

Since

a $5,000,000

 

One Year

Five Years

Inception1

Investment

Institutional Developed Markets Index Fund2

–46.12%

4.01%

–0.94%

$4,619,022

MSCI All Country World Index ex USA

–48.27

5.05

0.23

5,096,809

MSCI EAFE Index

–46.62

3.60

–1.12

4,549,517

Average International Fund3

–47.97

2.81

–2.03

4,207,428

 

 

1 Performance for the fund and its comparative standards is calculated since the fund’s inception: June 1, 2000.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

3 Derived from data provided by Lipper Inc.

 

 

102

Institutional Developed Markets Index Fund

 

Fiscal-Year Total Returns (%): June 1, 2000–October 31, 2008

 


 

Average Annual Total Returns: Periods Ended September 30, 2008

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

 

Inception Date

One Year

Five Years

Ten Years

Institutional Developed Markets Index Fund1

6/1/2000

–29.11%

10.25%

1.84%

 

 

1 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

Note: See Financial Highlights table for dividend and capital gains information.

 

 

103

Institutional Developed Markets Index Fund

 

Financial Statements

 

Statement of Net Assets

As of October 31, 2008

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

Market

 

 

Value

 

Shares

($000)

Investment Companies (100.0%)

 

 

International Stock Funds (99.9%)

 

 

Vanguard European Stock Index Fund Institutional Shares

111,125,369

2,449,203

Vanguard Pacific Stock Index Fund Institutional Shares

151,864,763

1,208,844

 

 

3,658,047

Money Market Fund (0.1%)

 

 

1 Vanguard Market Liquidity Fund, 2.217%

1,276,253

1,276

Total Investment Companies (Cost $4,939,454)

 

3,659,323

Other Assets and Liabilities (0.0%)

 

 

Other Assets

 

67,822

Liabilities

 

(66,660)

 

 

1,162

Net Assets (100%)

 

 

Applicable to 472,820,736 outstanding $.001 par value shares of

 

 

beneficial interest (unlimited authorization)

 

3,660,485

Net Asset Value Per Share

 

$7.74

 

At October 31, 2008, net assets consisted of:

 

 

Amount

 

($000)

Paid-in Capital

5,001,132

Undistributed Net Investment Income

1,409

Accumulated Net Realized Losses

(61,925)

Unrealized Appreciation (Depreciation)

(1,280,131)

Net Assets

3,660,485

 

 

See Note A in Notes to Financial Statements.

1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

104

Institutional Developed Markets Index Fund

 

Statement of Operations

 

 

Year Ended

 

October 31, 2008

 

($000)

Investment Income

 

Income

 

Income Distributions Received

137,824

Net Investment Income—Note B

137,824

Realized Net Gain (Loss) on Investment Securities Sold

(51,686)

Change in Unrealized Appreciation (Depreciation) of Investment Securities

(2,799,636)

Net Increase (Decrease) in Net Assets Resulting from Operations

(2,713,498)

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

105

Institutional Developed Markets Index Fund

 

Statement of Changes in Net Assets

 

 

Year Ended October 31,

 

2008

2007

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

137,824

98,306

Realized Net Gain (Loss)

(51,686)

224,995

Change in Unrealized Appreciation (Depreciation)

(2,799,636)

690,223

Net Increase (Decrease) in Net Assets Resulting from Operations

(2,713,498)

1,013,524

Distributions

 

 

Net Investment Income

(138,374)

(97,353)

Realized Capital Gain

Total Distributions

(138,374)

(97,353)

Capital Share Transactions

 

 

Issued

2,406,003

1,605,380

Issued in Lieu of Cash Distributions

118,333

79,390

Redeemed1

(1,123,411)

(1,096,395)

Net Increase (Decrease) from Capital Share Transactions

1,400,925

588,375

Total Increase (Decrease)

(1,450,947)

1,504,546

Net Assets

 

 

Beginning of Period

5,111,432

3,606,886

End of Period2

3,660,485

5,111,432

 

 

1 The fund collected redemption fees of $16,000 and $14,000, which were reallocated proportionately to the funds in which it invests.

2 Net Assets—End of Period includes undistributed net investment income of $1,409,000 and $1,959,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

106

Institutional Developed Markets Index Fund

 

Financial Highlights

 

For a Share Outstanding

Year Ended October 31,

Throughout Each Period

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$14.79

$12.05

$9.67

$8.35

$7.16

Investment Operations

 

 

 

 

 

Net Investment Income

.3571

.323

.229

.200

.158

Capital Gain Distributions Received

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(7.011)

2.733

2.380

1.320

1.190

Total from Investment Operations

(6.654)

3.056

2.609

1.520

1.348

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.396)

(.316)

(.229)

(.200)

(.158)

Distributions from Realized Capital Gains

Total Distributions

(.396)

(.316)

(.229)

(.200)

(.158)

Net Asset Value, End of Period

$7.74

$14.79

$12.05

$9.67

$8.35

 

 

 

 

 

 

Total Return2

–46.12%

25.84%

27.41%

18.37%

19.05%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$3,660

$5,111

$3,607

$1,748

$911

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0%3

0%

0%

0%

0%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

3.02%

2.25%

1.72%

1.86%

1.81%

Portfolio Turnover Rate

18%

11%4

14%

6%

19%

 

 

1 Calculated based on average shares outstanding.

2 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months.

3 The acquired fund fees and expenses were 0.09%.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

107

Institutional Developed Markets Index Fund

 

Notes to Financial Statements

 

Vanguard Institutional Developed Markets Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund seeks to match the performance of its target index by investing in the European and Pacific Stock Index Funds. The fund’s indirect investments in foreign securities involve investment risks not normally associated with investing in securities of U.S. corporations.

 

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.

 

2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended October 31, 2005–2008), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

 

3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

 

4. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

 

B. Under a service agreement, The Vanguard Group furnishes investment advisory, corporate management, administrative, marketing, and distribution services to the fund. The service agreement provides that the fund’s expenses may be reduced or eliminated to the extent of savings realized by the Vanguard funds by the operation of the fund. Accordingly, all incremental expenses for services provided by Vanguard and all other expenses incurred by the fund during the year ended October 31, 2008, were borne by the funds in which the fund invests. The fund’s trustees and officers are also directors and officers of Vanguard and the funds in which the fund invests.

 

C. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

 

For tax purposes, at October 31, 2008, the fund had $1,409,000 of ordinary income available for distribution. The fund had available realized losses of $8,141,000 to offset future net capital gains through October 31, 2011.

 

At October 31, 2008, the cost of investment securities for tax purposes was $4,993,237,000. Net unrealized depreciation of investment securities for tax purposes was $1,333,914,000, consisting entirely of unrealized losses on securities that had fallen in value since their purchase.

 

D. During the year ended October 31, 2008, the fund purchased $2,219,370,000 of investment securities and sold $821,024,000 of investment securities, other than temporary cash investments.

 

108

Institutional Developed Markets Index Fund

 

E. Capital shares issued and redeemed were:

 

 

 

Year Ended October 31,

 

2008

2007

 

Shares

Shares

 

(000)

(000)

Issued

213,601

121,169

Issued in Lieu of Cash Distributions

8,811

6,351

Redeemed

(95,151)

(81,220)

Net Increase (Decrease) in Shares Outstanding

127,261

46,300

 

 

F. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

 

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

At October 31, 2008, 100% of the fund’s investments were valued based on Level 1 inputs.

 

 

109

Report of Independent Registered Public Accounting Firm

 

To the Trustees of Vanguard International Equity Index Funds and the Shareholders of Vanguard European Stock Index Fund, Vanguard Pacific Stock Index Fund, Vanguard Emerging Markets Stock Index Fund, Vanguard Developed Markets Index Fund and Vanguard Institutional Developed Markets Index Fund:

 

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard European Stock Index Fund, Vanguard Pacific Stock Index Fund, Vanguard Emerging Markets Stock Index Fund, Vanguard Developed Markets Index Fund and Vanguard Institutional Developed Markets Index Fund (separate portfolios of Vanguard International Equity Index Funds, hereafter referred to as the “Funds”) at October 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodians and brokers, and by agreement to the underlying ownership records of the Vanguard funds, provide a reasonable basis for our opinion.

 

 

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

 

December 19, 2008

 

 

 

Special 2008 tax information (unaudited) for Vanguard European Stock Index Fund

 

This information for the fiscal year ended October 31, 2008, is included pursuant to provisions of the Internal Revenue Code.

 

The fund distributed $1,082,542,000 of qualified dividend income to shareholders during the fiscal year.

 

The fund will pass through to shareholders foreign source income of $1,293,621,000 and foreign taxes paid of $75,188,000. The pass-through of foreign taxes paid will affect only shareholders on the dividend record date in December 2008. Shareholders will receive more detailed information along with their Form 1099-DIV in January 2009.

 

110

Special 2008 tax information (unaudited) for Vanguard Pacific Stock Index Fund

 

This information for the fiscal year ended October 31, 2008, is included pursuant to provisions of the Internal Revenue Code.

 

The fund distributed $228,642,000 of qualified dividend income to shareholders during the fiscal year.

 

The fund will pass through to shareholders foreign source income of $377,281,000 and foreign taxes paid of $16,059,000. The pass-through of foreign taxes paid will affect only shareholders on the dividend record date in December 2008. Shareholders will receive more detailed information along with their Form 1099-DIV in January 2009.

 

Special 2008 tax information (unaudited) for Vanguard Emerging Markets Stock Index Fund

 

This information for the fiscal year ended October 31, 2008, is included pursuant to provisions of the Internal Revenue Code.

 

The fund distributed $264,663,000 of qualified dividend income to shareholders during the fiscal year.

 

The fund will pass through to shareholders foreign source income of $712,123,000 and foreign taxes paid of $59,213,000. The pass-through of foreign taxes paid will affect only shareholders on the dividend record date in December 2008. Shareholders will receive more detailed information along with their Form 1099-DIV in January 2009.

 

Special 2008 tax information (unaudited) for Vanguard Developed Markets Index Fund

 

This information for the fiscal year ended October 31, 2008, is included pursuant to provisions of the Internal Revenue Code.

 

The fund distributed $7,000 as capital gain dividends (from net long-term capital gains) to shareholders during the fiscal year.

For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the fund are qualified short-term capital gains.

 

The fund distributed $82,020,000 of qualified dividend income to shareholders during the fiscal year.

 

Special 2008 tax information (unaudited) for Vanguard Institutional Developed Markets

Index Fund

 

This information for the fiscal year ended October 31, 2008, is included pursuant to provisions of the Internal Revenue Code.

 

The fund distributed $105,483,000 of qualified dividend income to shareholders during the fiscal year.

 

111

Your Fund’s After-Tax Returns

 

This table presents returns for your fund both before and after taxes. The after-tax returns are shown in two ways: (1) assuming that an investor owned the fund during the entire period and paid taxes on the fund’s distributions, and (2) assuming that an investor paid taxes on the fund’s distributions and sold all shares at the end of each period.

 

Calculations are based on the highest individual federal income tax and capital gains tax rates in effect at the times of the distributions and the hypothetical sales. State and local taxes were not considered. After-tax returns reflect any qualified dividend income, using actual prior-year figures and estimates for 2008. (In the example, returns after the sale of fund shares may be higher than those assuming no sale. This occurs when the sale would have produced a capital loss. The calculation assumes that the investor received a tax deduction for the loss.)

 

The table shows returns for Investor Shares only; returns for other share classes will differ. Please note that your actual after-tax returns will depend on your tax situation and may differ from those shown. Also note that if you own the fund in a tax-deferred account, such as an individual retirement account or a 401(k) plan, this information does not apply to you. Such accounts are not subject to current taxes.

 

Finally, keep in mind that a fund’s performance—whether before or after taxes—does not guarantee future results.

 

 

Average Annual Total Returns: International Stock Index Funds

 

 

 

Periods Ended October 31, 2008

 

 

 

 

One

Five

Ten

 

Year

Years

Years

European Stock Index Fund Investor Shares1

 

 

 

Returns Before Taxes

–47.80%

4.57%

1.69%

Returns After Taxes on Distributions

–48.04

4.16

1.12

Returns After Taxes on Distributions and Sale of Fund Shares

–30.39

4.02

1.32

 

 

 

 

Pacific Stock Index Fund Investor Shares1

 

 

 

Returns Before Taxes

–42.71%

2.17%

2.16%

Returns After Taxes on Distributions

–42.99

1.80

1.82

Returns After Taxes on Distributions and Sale of Fund Shares

–27.35

1.87

1.76

 

 

 

 

Emerging Markets Stock Index Fund Investor Shares2

 

 

 

Returns Before Taxes

–56.88%

8.94%

9.19%

Returns After Taxes on Distributions

–57.00

8.69

8.61

Returns After Taxes on Distributions and Sale of Fund Shares

–36.59

7.86

7.89

 

 

1 Total returns do not reflect the 0.25% transaction fee on purchases through March 31, 2000; the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months; or the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Performance figures are adjusted for the 0.25% (0.50% prior to June 26, 2008) transaction fee on purchases and redemptions. Total returns do not reflect the 2% fee assessed until March 23, 2005, on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or the account service fee that may be applicable to certain accounts with balances below $10,000.

 

 

112

Average Annual Total Returns: International Stock Index Funds

 

 

 

Periods Ended October 31, 2008

 

 

 

 

One

Five

Ten

 

Year

Years

Years

Developed Markets Index Fund1

 

 

 

Returns Before Taxes

–46.24%

3.84%

–0.97%2

Returns After Taxes on Distributions

–46.54

3.37

–1.492

Returns After Taxes on Distributions and Sale of Fund Shares

–29.51

3.27

–0.962

 

 

 

 

Institutional Developed Markets Index Fund1

 

 

 

Returns Before Taxes

–46.12%

4.01%

–0.94%2

Returns After Taxes on Distributions

–46.43

3.51

–1.492

Returns After Taxes on Distributions and Sale of Fund Shares

–29.43

3.41

–0.952

 

 

1 Total returns do not reflect the 2% fee assessed on redemptions of shares purchased on or after June 27, 2003, and held for less than two months, or for the Developed Markets Index Fund, the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Returns since inception. Inception dates are May 8, 2000, for the Developed Markets Index Fund and June 1, 2000, for the Institutional Developed Markets Index Fund.

 

 

113

About Your Fund’s Expenses

 

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

 

A typical fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. “Funds of funds,” such as the Developed Markets Index Fund and Institutional Developed Markets Index Fund, have no direct expenses, but each fund bears its proportionate share of the expenses of the underlying funds in which it invests. These indirect expenses make up the fund’s acquired fund fees and expenses, also expressed as a percentage of average net assets.

 

The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The costs are calculated using each fund’s acquired fund fees and expenses.

 

The accompanying tables illustrate your fund’s costs in two ways:

 

• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading “Expenses Paid During Period.”

 

• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund’s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

 

Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include the transaction fees or the account service fee described in the prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”

 

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

 

You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.

 

114

Six Months Ended October 31, 2008

 

 

 

 

Beginning

Ending

Expenses

 

Account Value

Account Value

Paid During

International Stock Index Fund

4/30/2008

10/31/2008

Period1

Based on Actual Fund Return

 

 

 

European

 

 

 

Investor Shares

$1,000.00

$578.84

$0.96

Admiral Shares

1,000.00

579.32

0.52

Signal Shares

1,000.00

579.33

0.52

Institutional Shares

1,000.00

579.39

0.36

ETF Shares

1,000.00

579.41

0.44

Pacific

 

 

 

Investor Shares

$1,000.00

$633.68

$0.99

Admiral Shares

1,000.00

634.09

0.54

Signal Shares

1,000.00

634.16

0.54

Institutional Shares

1,000.00

634.26

0.37

ETF Shares

1,000.00

634.23

0.45

Emerging Markets

 

 

 

Investor Shares2

$1,000.00

$488.61

$1.16

Admiral Shares2

1,000.00

488.75

0.71

Signal Shares2

1,000.00

488.68

0.75

Institutional Shares2

1,000.00

488.80

0.53

ETF Shares

1,000.00

488.78

0.75

Developed Markets

$1,000.00

$595.57

$0.88

Institutional Developed Markets

$1,000.00

$596.76

$0.36

 

 

1 These calculations are based on expenses incurred in the most recent six-month period, except for the two “funds of funds,” for which calculations are based on the acquired fund fees and expenses charged by the underlying mutual funds in which the funds of funds invest. The funds of funds’ annualized expense figures for the same period are 0.22% for the Developed Markets Index Fund and 0.09% for the Institutional Developed Markets Index Fund. The annualized six-month expense ratios for the European, Pacific, and Emerging Markets funds are as follows: European Stock Index Fund—0.24% for Investor Shares, 0.13% for Admiral Shares, 0.13% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares; Pacific Stock Index Fund—0.24% for Investor Shares, 0.13% for Admiral Shares, 0.13% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares and Emerging Markets Stock Index Fund—0.31% for Investor Shares, 0.19% for Admiral Shares, 0.20% for Signal Shares, 0.14% for Institutional Shares, and 0.20% for ETF Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.

2 Calculations do not reflect the fund’s 0.25% (0.50% prior to June 26, 2008) purchase fee, which is deducted from all purchases (including exchanges from other Vanguard funds) but not from reinvested dividends and capital gains.

 

 

115

Six Months Ended October 31, 2008

 

 

 

 

Beginning

Ending

Expenses

 

Account Value

Account Value

Paid During

International Stock Index Fund

4/30/2008

10/31/2008

Period1

Based on Hypothetical 5% Yearly Return

 

 

 

European

 

 

 

Investor Shares

$1,000.00

$1,025.08

$0.12

Admiral Shares

1,000.00

1,024.55

0.66

Signal Shares

1,000.00

1,024.55

0.66

Institutional Shares

1,000.00

1,024.75

0.46

ETF Shares

1,000.00

1,024.65

0.56

Pacific

 

 

 

Investor Shares

$1,000.00

$1,024.00

$1.22

Admiral Shares

1,000.00

1,024.55

0.66

Signal Shares

1,000.00

1,024.55

0.66

Institutional Shares

1,000.00

1,024.75

0.46

ETF Shares

1,000.00

1,024.65

0.56

Emerging Markets

 

 

 

Investor Shares2

$1,000.00

$1,023.64

$1.58

Admiral Shares2

1,000.00

1,024.25

0.97

Signal Shares2

1,000.00

1,024.20

1.02

Institutional Shares2

1,000.00

1,024.50

0.71

ETF Shares

1,000.00

1,024.20

1.02

Developed Markets

$1,000.00

$1,024.10

$1.12

Institutional Developed Markets

$1,000.00

$1,024.75

$0.46

 

 

1 These calculations are based on expenses incurred in the most recent six-month period, except for the two “funds of funds,” for which calculations are based on the acquired fund fees and expenses charged by the underlying mutual funds in which the funds of funds invest. The funds of funds’ annualized expense figures for the same period are 0.22% for the Developed Markets Index Fund and 0.09% for the Institutional Developed Markets Index Fund. The annualized six-month expense ratios for the European, Pacific, and Emerging Markets funds are as follows: European Stock Index Fund—0.24% for Investor Shares, 0.13% for Admiral Shares, 0.13% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares; Pacific Stock Index Fund—0.24% for Investor Shares, 0.13% for Admiral Shares, 0.13% for Signal Shares, 0.09% for Institutional Shares, and 0.11% for ETF Shares and Emerging Markets Stock Index Fund—0.31% for Investor Shares, 0.19% for Admiral Shares, 0.20% for Signal Shares, 0.14% for Institutional Shares, and 0.20% for ETF Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.

2 Calculations do not reflect the fund’s 0.25% (0.50% prior to June 26, 2008) purchase fee, which is deducted from all purchases (including exchanges from other Vanguard funds) but not from reinvested dividends and capital gains.

 

 

116

Glossary

 

Acquired Fund Fees and Expenses. Funds that invest in other Vanguard funds incur no direct expenses, but they do bear proportionate shares of the operating, administrative, and advisory expenses of the underlying funds, and they must pay any fees charged by those funds. The figure for acquired fund fees and expenses represents a weighted average of these underlying costs. Acquired is a term that the Securities and Exchange Commission applies to any mutual fund whose shares are owned by another fund.

 

Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.

 

Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any holdings in short-term reserves are excluded.

 

Expense Ratio. The percentage of a fund’s average net assets used to pay its annual administrative and advisory expenses. These expenses directly reduce returns to investors.

 

Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.

 

R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from the market in general, as measured by a given index. If a fund’s total returns were precisely synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.

 

Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.

 

Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur higher transaction costs and may be more likely to distribute capital gains (which may be taxable to investors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.

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The People Who Govern Your Fund

 

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.

 

A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals.

 

Our independent board members bring distinguished backgrounds in business, academia, and public service to their task of working with Vanguard officers to establish the policies and oversee the activities of the funds. Among board members’ responsibilities are selecting investment advisors for the funds; monitoring fund operations, performance, and costs; reviewing contracts; nominating and selecting new trustees/directors; and electing Vanguard officers.

 

Each trustee serves a fund until its termination; or until the trustee’s retirement, resignation, or death; or otherwise as specified in the fund’s organizational documents. Any trustee may be removed at a shareholders’ meeting by a vote representing two-thirds of the net asset value of all shares of the fund together with shares of other Vanguard funds organized within the same trust. The table on these two pages shows information for each trustee and executive officer of the fund. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482.

 

Chairman of the Board and Trustee

 

 

John J. Brennan1

 

Born 1954

Principal Occupation(s) During the Past Five Years: Chairman of the Board and Director/

Trustee Since May 1987;

Trustee of The Vanguard Group, Inc., and of each of the investment companies served

Chairman of the Board

by The Vanguard Group; Chief Executive Officer and President of The Vanguard Group

156 Vanguard Funds Overseen

and of each of the investment companies served by The Vanguard Group (1996–2008).

 

 

Independent Trustees

 

 

 

Charles D. Ellis

 

Born 1937

Principal Occupation(s) During the Past Five Years: Applecore Partners (pro bono ventures

Trustee Since January 2001

in education); Senior Advisor to Greenwich Associates (international business strategy

156 Vanguard Funds Overseen

consulting); Successor Trustee of Yale University; Overseer of the Stern School of Business

 

at New York University; Trustee of the Whitehead Institute for Biomedical Research.

 

 

Emerson U. Fullwood

 

Born 1948

Principal Occupation(s) During the Past Five Years: Executive Chief Staff and Marketing

Trustee Since January 2008

Officer for North America since 2004 and Corporate Vice President of Xerox Corporation

156 Vanguard Funds Overseen

(photocopiers and printers); Director of SPX Corporation (multi-industry manufacturing),

 

of the United Way of Rochester, and of the Boy Scouts of America.

 

 

Rajiv L. Gupta

 

Born 1945

Principal Occupation(s) During the Past Five Years: Chairman, President, and

Trustee Since December 20012

Chief Executive Officer of Rohm and Haas Co. (chemicals); Board Member of

156 Vanguard Funds Overseen

the American Chemistry Council; Director of Tyco International, Ltd. (diversified

 

manufacturing and services), since 2005.

 

 

Amy Gutmann

 

Born 1949

Principal Occupation(s) During the Past Five Years: President of the University of

Trustee Since June 2006

Pennsylvania since 2004; Professor in the School of Arts and Sciences, Annenberg School

156 Vanguard Funds Overseen

for Communication, and Graduate School of Education of the University of Pennsylvania

 

since 2004; Provost (2001–2004) and Laurance S. Rockefeller Professor of Politics and

 

the University Center for Human Values (1990–2004), Princeton University; Director of

 

Carnegie Corporation of New York since 2005 and of Schuylkill River Development

 

Corporation and Greater Philadelphia Chamber of Commerce since 2004; Trustee of

 

the National Constitution Center since 2007.

 

JoAnn Heffernan Heisen

 

Born 1950

Principal Occupation(s) During the Past Five Years: Corporate Vice President and

Trustee Since July 1998

Chief Global Diversity Officer since 2006, Vice President and Chief Information

156 Vanguard Funds Overseen

Officer (1997–2005), and Member of the Executive Committee of Johnson &

 

Johnson (pharmaceuticals/consumer products); Director of the University Medical

 

Center at Princeton and Women’s Research and Education Institute.

 

 

André F. Perold

 

Born 1952

Principal Occupation(s) During the Past Five Years: George Gund Professor of Finance

Trustee Since December 2004

and Banking, Harvard Business School; Senior Associate Dean and Director of Faculty

156 Vanguard Funds Overseen

Recruiting, Harvard Business School; Director and Chairman of UNX, Inc. (equities

 

trading firm); Chair of the Investment Committee of HighVista Strategies LLC (private

 

investment firm) since 2005.

 

 

Alfred M. Rankin, Jr.

 

Born 1941

Principal Occupation(s) During the Past Five Years: Chairman, President, Chief Executive

Trustee Since January 1993

Officer, and Director of NACCO Industries, Inc. (forklift trucks/housewares/lignite); Director

156 Vanguard Funds Overseen

of Goodrich Corporation (industrial products/aircraft systems and services).

 

 

J. Lawrence Wilson

 

Born 1936

Principal Occupation(s) During the Past Five Years: Retired Chairman and Chief Executive

Trustee Since April 1985

Officer of Rohm and Haas Co. (chemicals); Director of Cummins Inc. (diesel engines) and

156 Vanguard Funds Overseen

AmerisourceBergen Corp. (pharmaceutical distribution); Trustee of Vanderbilt University

 

and of Culver Educational Foundation.

 

 

Executive Officers1

 

 

 

Thomas J. Higgins

 

Born 1957

Principal Occupation(s) During the Past Five Years: Principal of The Vanguard Group, Inc.;

Chief Financial Officer

Treasurer of each of the investment companies served by The Vanguard Group; Chief

Since September 2008

Financial Officer of each of the investment companies served by The Vanguard

Treasurer Since July 1998

Group since 2008.

156 Vanguard Funds Overseen

 

 

 

F. William McNabb III

 

Born 1957

Principal Occupation(s) During the Past Five Years: Chief Executive Officer, Director,

Chief Executive Officer

and President of The Vanguard Group, Inc., since 2008; Chief Executive Officer and

Since August 31, 2008

President of each of the investment companies served by The Vanguard Group since

President Since March 2008

2008; Director of Vanguard Marketing Corporation; Managing Director of The Vanguard

156 Vanguard Funds Overseen

Group (1995–2008).

 

 

Heidi Stam

 

Born 1956

Principal Occupation(s) During the Past Five Years: Managing Director of The Vanguard

Secretary Since July 2005

Group, Inc., since 2006; General Counsel of The Vanguard Group since 2005; Secretary of

156 Vanguard Funds Overseen

The Vanguard Group and of each of the investment companies served by The Vanguard

 

Group since 2005; Director and Senior Vice President of Vanguard Marketing Corporation

 

since 2005; Principal of The Vanguard Group (1997–2006).

 

Vanguard Senior Management Team

 

 

 

 

 

 

 

 

R. Gregory Barton

Kathleen C. Gubanich

Michael S. Miller

Ralph K. Packard

George U. Sauter

Mortimer J. Buckley

Paul A. Heller

James M. Norris

Glenn W. Reed

 

 

Founder

 

John C. Bogle

Chairman and Chief Executive Officer, 1974–1996

 

1

These individuals are “interested persons” as defined in the Investment Company Act of 1940.

2

December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.

More information about the trustees is in the Statement of Additional Information, available from The Vanguard Group.

 

 


 

P.O. Box 2600

 

Valley Forge, PA 19482-2600

 

Connect with Vanguard® > www.vanguard.com

 

Fund Information > 800-662-7447

All comparative mutual fund data are from Lipper Inc.

 

or Morningstar, Inc., unless otherwise noted.

Direct Investor Account Services > 800-662-2739

 

 

 

Institutional Investor Services > 800-523-1036

You can obtain a free copy of Vanguard’s proxy voting

 

guidelines by visiting our website, www.vanguard.com,

Text Telephone for People

and searching for “proxy voting guidelines,” or by

With Hearing Impairment > 800-952-3335

calling Vanguard at 800-662-2739. The guidelines are

 

also available from the SEC’s website, www.sec.gov.

 

In addition, you may obtain a free report on how your

 

fund voted the proxies for securities it owned during

This material may be used in conjunction

the 12 months ended June 30. To get the report, visit

with the offering of shares of any Vanguard

either www.vanguard.com or www.sec.gov.

fund only if preceded or accompanied by

 

the fund’s current prospectus.

 

 

You can review and copy information about your fund

 

at the SEC’s Public Reference Room in Washington, D.C.

The funds or securities referred to herein are not

To find out more about this public service, call the SEC

sponsored, endorsed, or promoted by MSCI, and MSCI

at 202-551-8090. Information about your fund is also

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Q720 122008

 

 

 


 

 

>

From their inception on June 26, 2008, through October 31, 2008, Investor Shares of Vanguard Total World Stock Index Fund declined –31.45%.

>

The time period was a tumultuous one, as credit problems that had started in the United States reverberated globally.

>

The fund provides market-capitalization-weighted exposure to developed and emerging markets around the world. All of these regions turned in negative results for the period.

 

 

Contents

 

 

 

Your Fund’s Total Returns

1

President’s Letter

2

Fund Profile

7

Performance Summary

9

Financial Statements

11

Trustees Approve Advisory Arrangement

45

Glossary

46

 

 

 

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

Your Fund’s Total Returns

 

 

Periods Ended October 31, 2008

 

 

 

 

Return Since

 

Ticker

Share-Class

 

Symbols

Inception

Vanguard Total World Stock Index Fund Investor Shares (Inception 6/26/2008)

VTWSX

–31.45%

FTSE All-World Index

 

–33.03

Average Global Fund1

 

–31.80

 

 

 

Vanguard Total World Stock Index Fund Institutional Shares2 (Inception 10/09/2008)

VTWIX

2.72%

FTSE All-World Index

 

–1.09

Average Global Fund1

 

2.72

 

 

 

Vanguard Total World Stock Index Fund ETF Shares3 (Inception 6/24/2008)

VT

 

Market Price

 

–31.23%

Net Asset Value

 

–32.47

FTSE All-World Index

 

–33.67

Average Global Fund1

 

–32.83

 

 

Your Fund’s Performance at a Glance

 

 

 

 

Inception Through October 31, 2008

 

 

 

 

 

 

 

Distributions Per Share

 

Share Price

Ending

Income

Capital

 

at Inception

Share Price

Dividends

Gains

Vanguard Total World Stock Index Fund

 

 

 

 

Investor Shares

$20.00

$13.71

$0.000

$0.000

Institutional Shares

66.81

68.63

0.000

0.000

ETF Shares

49.74

33.59

0.000

0.000

 

 

1 Derived from data provided by Lipper Inc.

2 This class of shares carries lower expenses and is available for a minimum initial investment of $5 million.

3 Vanguard ETF™ Shares are traded on the NYSE Arca exchange and are available only through brokers. The table shows the ETF returns based on both the NYSE Arca market price and the net asset value for a share. U.S. Pat. No. 6,879,964 B2; 7,337,138.

 

 

1


 

President’s Letter

 

Dear Shareholder,

Vanguard Total World Stock Index Fund opened its Investor and ETF share classes to investors in late June 2008. The fund introduced a new class of Institutional Shares in early October. I’m pleased to submit the fund’s first “annual report” for this partial year.

The fund is designed to closely track the FTSE All-World Index, a measure of global stock markets that includes about 2,900 stocks. The fund and index provide exposure to U.S. stocks, developed international markets, and emerging markets, with each weighted in proportion to its market value. The fund made its debut during an unsettled time in the financial markets. Since inception, Vanguard Total World Stock Index Fund Investor Shares have returned –31.45%.

Stock prices fell sharply in a global upheaval

Although the fund began operations in June, we provide a brief overview of the investment environment during the fiscal year ended October 31, 2008. Global stock markets started the 12-month period near all-time highs, but then declined sharply, laid low by the financial crisis that originated in the fixed income markets. The descent traced a series of jagged ups and downs. During the week ended October 10, for example, the U.S. stock market returned about –18%. When Wall Street opened the following Monday, stocks surged, returning more than 10% over the next six and a half hours.

 

2

For the full 12 months, the broad U.S. stock market returned –36.43%; international stocks returned –48.27%. The pain was especially acute in emerging markets—among the strongest performers in recent years—as investors became increasingly risk-averse.

Bond market averages masked disparate returns

The broad U.S. taxable bond market registered an unremarkable return of 0.30% for the 12 months, but by its own typically sedate standards, the dislocations were extreme. The strong performance of U.S. Treasury and government securities was offset by double-digit declines in the corporate bond market. These dynamics led to unusually large differences between the yields of Treasuries and their corresponding private-sector securities—both a reflection and a cause of the credit market’s distress. Despite their generally high creditworth-iness, municipal bonds also fell in price, with the broad tax-exempt market registering a 12-month return of –3.30%.

The U.S. Federal Reserve Board responded to the turmoil with new lending programs and a dramatic easing of monetary policy. Over the full 12 months, the Fed reduced its target for the federal funds rate from 4.50% to 1.00%.

Index returns were hurt by foreign and domestic stocks alike

Over the four months from their inception through October 31, the Investor Shares of Vanguard Total World Stock Index Fund

 

 

Market Barometer

 

 

Average Annual Total Returns

 

Periods Ended October 31, 2008

 

One Year

Three Years

Five Years

Stocks

 

 

 

MSCI All Country World Index ex USA (International)

–48.27%

–3.93%

5.05%

Russell 1000 Index (Large-caps)

–36.80

–5.51

0.37

Russell 2000 Index (Small-caps)

–34.16

–4.79

1.57

Dow Jones Wilshire 5000 Index (Entire market)

–36.43

–5.10

0.81

 

 

 

 

Bonds

 

 

 

Lehman U.S. Aggregate Bond Index (Broad taxable market)

0.30%

3.60%

3.48%

Lehman Municipal Bond Index

–3.30

1.71

2.73

Citigroup 3-Month Treasury Bill Index

2.31

3.93

3.10

 

 

 

 

CPI

 

 

 

Consumer Price Index

3.66%

2.83%

3.20%

 

 

3

returned –31.45%, declining slightly less than the benchmark. The apparent discrepancy between fund and index returns reflected fair-value pricing and, to a lesser extent, fund costs. The fund relies on fair-value pricing to account for any changes in the portfolio’s market value that occur after the close of international markets but before the fund’s U.S. close at 4 p.m., Eastern time. These discrepancies typically disappear when the international markets reopen.

It was hard to find a bright spot for the index during the period; all regions and all sectors posted negative results. Financial stocks—which were down across the board because of the global credit crunch—accounted for about 20% of the index’s holdings during the period. The sector subtracted almost 9 percentage points from the index’s return, as commercial banks and insurance companies registered especially weak performances. The index’s energy holdings also weighed on returns. Oil companies were down both domestically and abroad, as global demand for oil decreased and prices dropped significantly.

Consistent with the value of their stock markets, North America’s developed economies, principally the United States, accounted for the index’s heaviest regional weighting—about 47%, on average, during the period. Although North American markets held up somewhat better than the rest of the globe, their losses were steep, and their heavy weighting made them one of the index’s largest detractors, with the biggest losses coming from financials, energy, and information technology stocks.

 

 

Expense Ratios1

 

 

 

 

Your Fund Compared With Its Peer Group

 

 

 

 

 

Investor

Institutional

ETF

Average

 

Shares

Shares

Shares

Global Fund

Total World Stock Index Fund

0.45%

0.20%

0.25%

1.49%

 

 

1 The fund expense ratios shown are from the prospectuses dated June 17, 2008, and were based on estimated expenses. For the fiscal period ended October 31, 2008, the annualized expense ratios were 0.46% for Investor Shares, 0.20% for Institutional Shares, and 0.29% for ETF Shares. The peer-group expense ratio is derived from data provided by Lipper Inc. and captures information through year-end 2007.

 

4

Europe represented the fund’s—and the index’s—second-largest exposure (about 29%, on average, during the period), with the United Kingdom constituting the largest country weighting there. The index also had sizable weightings in French, German, and Swiss companies. The European countries took a substantial toll on the fund’s performance, delivering weaker returns than their North American counterparts, mostly because of hard-hit financial and materials holdings.

The Pacific region represented the fund’s third-largest geographical exposure. The developed countries in this region, in particular Japan and Australia, also suffered because of downturns in banks and materials companies.

Emerging markets accounted for a relatively small proportion of the fund’s value—less than 10% of assets, on average, during the period—but their returns were among the globe’s most disappointing. Many of these natural-resource-rich markets were hurt by the swift decline in commodity prices, and emerging markets as a group paid a price for investors’ shrinking appetite for risk during the period.

Long-term perspective is key despite market conditions

The past 12 months have been a difficult time for investors globally. As both domestic and foreign stocks continued to struggle, the Total World Stock Index Fund was no stranger to the markets’ upheavals, and posted a decidedly weak return for the partial fiscal period.

Although the fund’s four-month return was certainly less than impressive, this limited time period provides little meaningful information about the fund’s potential or the promise of its investment strategy, especially given the unusual volatility in the global stock market throughout the fund’s existence. We’re confident that, over the long-term, the Total World Stock Index Fund will benefit from its diverse mix of stocks from all over the globe, its low expense ratio, and the skill of its experienced index advisor, Vanguard Quantitative Equity Group.

For these reasons, we believe that the Total World Stock Index Fund is an excellent choice to help balance your investment portfolio.

Thank you for entrusting your assets to Vanguard.

Sincerely,

 


 

F. William McNabb III

President and Chief Executive Officer

November 18, 2008

 

 

5

 

Vanguard Total World Stock Index Fund ETF

Premium/Discount: June 24, 20081 –October 31, 2008

 

Market Price Above or

Market Price Below

 

Equal to Net Asset Value

 

Net Asset Value

 

Number

Percentage

Number

Percentage

Basis Point Differential2

of Days

of Total Days

of Days

of Total Days

0–24.9

17

18.28%

1

1.08%

25–49.9

22

23.66

0

0.00

50–74.9

16

17.20

1

1.08

75–100.0

10

10.75

0

0.00

>100.0

25

26.87

1

1.08

Total

90

96.76%

3

3.24%

 

 

1 Inception

2 One basis point equals 1/100 of a percentage point.

 

 

6

Total World Stock Index Fund

 

Fund Profile

As of October 31, 2008

 

Portfolio Characteristics

 

 

 

 

Target

 

Fund

Index1

Number of Stocks

2,065

2,873

Turnover Rate

5%

Expense Ratio2

 

Investor Shares

0.45%

 

Institutional Shares

0.20%

 

ETF Shares

0.25%

 

Short-Term Reserves

1.6%

 

 

Sector Diversification (% of equity exposure)

 

 

Target

 

Fund

Index1

Consumer Discretionary

8.8%

8.8%

Consumer Staples

11.0

10.7

Energy

11.4

11.7

Financials

20.7

20.9

Health Care

10.2

10.3

Industrials

10.1

10.1

Information Technology

10.6

10.6

Materials

6.0

6.3

Telecommunication

 

 

Services

5.6

5.5

Utilities

5.6

5.1

 

 

Ten Largest Holdings3 (% of total net assets)

 

 

 

ExxonMobil Corp.

integrated oil

 

 

and gas

1.9%

General Electric Co.

industrial

 

 

conglomerates

1.0

Microsoft Corp.

systems software

1.0

The Procter & Gamble Co.

household products

1.0

Johnson & Johnson

pharmaceuticals

0.9

Royal Dutch Shell PLC

integrated oil

 

 

and gas

0.8

Wal-Mart Stores, Inc.

hypermarkets

 

 

and supercenters

0.8

AT&T Inc.

integrated

 

 

telecommunication

 

 

services

0.8

Chevron Corp.

integrated oil

 

 

and gas

0.8

BP PLC

integrated oil

 

 

and gas

0.8

Top Ten

 

9.8%

 

 

Allocation by Region (% of equity exposure)

 


 

 

1 FTSE All-World Index.

2 The expense ratios shown are from the prospectuses dated June 17, 2008, and were based on estimated expenses. For the fiscal period ended October 31, 2008, the annualized expense ratios were 0.46% for Investor Shares, 0.20% for Institutional Shares, and 0.29% for ETF Shares.

3 The holdings listed exclude any temporary cash investments and equity index products.

For explanations of investment terms used here, see the Glossary.

 

 

7

Total World Stock Index Fund

 

 

Market Diversification (% of equity exposure)

 

 

Target

 

Fund

Index1

Europe

 

 

United Kingdom

8.7%

8.6%

France

4.6

4.8

Switzerland

3.5

3.4

Germany

3.5

3.5

Spain

1.8

1.8

Italy

1.5

1.5

Netherlands

1.0

0.9

Other European Markets

3.2

3.0

Subtotal

27.8%

27.5%

Pacific

 

 

Japan

9.2%

9.1%

Australia

2.5

2.5

Hong Kong

1.2

1.0

Other Pacific Markets

0.6

0.5

Subtotal

13.5%

13.1%

Emerging Markets

 

 

South Korea

1.4%

1.4%

Brazil

1.2

1.4

China

1.2

1.4

Taiwan

1.2

1.2

Other Emerging Markets

4.7

4.7

Subtotal

9.7%

10.1%

North America

 

 

United States

45.8%

46.2%

Canada

3.2

3.1

Subtotal

49.0%

49.3%

 

 

1 FTSE All-World Index.

 

 

8

Total World Stock Index Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

Cumulative Returns: Inception Through October 31, 2008

 

 

 

Total Returns

 

 

Periods Ended October 31, 2008

 

 

 

Final Value of

 

Since

a $10,000

 

Inception1

Investment

Total World Stock Index Fund Investor Shares2,3

–31.62%

$6,838

FTSE All-World Index

–33.03

6,697

Average Global Fund4

–31.80

6,820

 

 

 

 

 

Final Value of

 

Since

a $5,000,000

 

Inception1

Investment

Total World Stock Index Fund Institutional Shares5

0.42%

$5,021,155

FTSE All-World Index

–1.09

4,945,509

 

 

 

 

 

Final Value of

 

Since

a $10,000

 

Inception1

Investment

Total World Stock Index Fund ETF Shares Net Asset Value

–32.47%

$6,753

FTSE All-World Index

–33.67

6,633

 

 

Cumulative Returns—ETF Shares: June 24, 2008–October 31, 2008

 

 

Cumulative

 

Since Inception1

Total World Stock Index Fund ETF Shares Market Price

–31.23%

Total World Stock Index Fund ETF Shares Net Asset Value

–32.47

FTSE All-World Index

–33.67

 

 

1 Performance for the fund and its comparative standards is calculated since the following inception dates: June 26, 2008, for the Investor Shares, October 9, 2008, for the Institutional Shares, and June 24, 2008, for the ETF Shares.

2 Performance figures are adjusted for the 0.25% transaction fee on purchases but do not reflect the 2% fee assessed on redemptions of shares held for less than two months.

3 Total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000.

4 Derived from data provided by Lipper Inc.

5 Performance figures are adjusted for the 0.25% transaction fee on purchases and the 2% fee assessed on redemptions of shares held for less than two months.

 

9

Total World Stock Index Fund

 

Fiscal-Year Total Returns (%): June 26, 2008–October 31, 2008

 


 

Total Returns: Periods Ended September 30, 20082

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

Inception

Since

 

Date

Inception

Total World Stock Index Fund

 

 

Investor Shares3

6/26/2008

–14.60%

Fee-Adjusted Returns4

 

–14.81

ETF Shares

6/24/2008

 

Market Price

 

–12.70%

Net Asset Value

 

–15.86

 

 

1 Since the Investor Shares’ inception on June 26, 2008.

2 Table does not include the Institutional Share class because its inception date is after September 30, 2008.

3 Total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000.

4 Performance figures are adjusted for the 0.25% transaction fee on purchases but do not reflect the 2% fee assessed on redemptions of shares held for less than two months.

Note: See Financial Highlights tables for dividend and capital gains information.

 

 

10

Total World Stock Index Fund

 

Financial Statements

 

Statement of Net Assets

As of October 31, 2008

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

Market

 

 

Value

 

Shares

($000)

Common Stocks (98.3%)

 

 

Argentina (0.0%)

 

 

Tenaris SA ADR

3,502

72

 

 

 

Australia (2.5%)

 

 

BHP Billiton Ltd.

27,097

521

Commonwealth Bank

 

 

of Australia

10,437

285

National Australia Bank Ltd.

14,178

230

Westpac Banking Corp., Ltd.

15,908

218

Australia & New Zealand

 

 

Bank Group Ltd.

17,856

209

Woolworths Ltd.

10,140

189

Westfield Group

15,816

175

Rio Tinto Ltd.

2,808

145

QBE Insurance Group Ltd.

8,330

142

Woodside Petroleum Ltd.

3,983

113

CSL Ltd.

4,377

106

Telstra Corp. Ltd.

35,274

97

St. George Bank Ltd.

4,608

86

Origin Energy Ltd.

7,535

79

Brambles Ltd.

14,688

78

Wesfarmers Ltd.

5,267

76

Foster’s Group Ltd.

16,042

61

Macquarie Group, Ltd.

2,609

52

Newcrest Mining Ltd.

3,745

51

AMP Ltd.

13,199

48

Computershare Ltd.

7,837

44

Santos Ltd.

4,673

42

Orica Ltd.

3,150

41

Suncorp-Metway Ltd.

6,874

37

Stockland

13,431

36

Perpetual Trustees

 

 

Australia Ltd.

1,530

36

Transurban Group

9,809

35

Insurance Australia

 

 

Group Ltd.

13,756

35

Oil Search Ltd.

11,305

34

Wesfarmers, Ltd. Price

 

 

Protected Shares

2,295

33

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Fortescue Metals

 

 

 

Group Ltd.

16,390

32

 

Sonic Healthcare Ltd.

3,326

30

 

Coca-Cola Amatil Ltd.

5,481

30

 

Amcor Ltd.

7,622

29

 

Incitec Pivot Ltd.

9,860

26

 

AGL Energy Ltd.

2,725

26

 

OneSteel Ltd.

10,642

24

 

Leighton Holdings Ltd.

1,445

24

 

AXA Asia Pacific

 

 

 

Holdings Ltd.

7,757

23

 

BlueScope Steel Ltd.

7,684

23

 

Alumina Ltd.

14,365

20

 

Australian Stock

 

 

 

Exchange Ltd.

936

19

 

WorleyParsons Ltd.

1,853

19

 

CSR Ltd.

12,455

18

 

Macquarie

 

 

 

Infrastructure Group

13,073

17

 

Bendigo Bank Ltd.

1,924

17

 

OZ Minerals Ltd.

25,527

16

 

James Hardie Industries NV

5,478

16

 

Nufarm Ltd.

2,085

15

 

Tatt’s Group, Ltd.

8,921

15

 

Aristocrat Leisure Ltd.

5,593

14

 

Metcash Ltd.

5,163

14

 

Lion Nathan Ltd.

2,123

13

 

CFS Gandel Retail Trust

8,902

12

 

Toll Holdings Ltd.

2,951

12

 

Lend Lease Corp.

2,517

12

 

Crown Ltd.

2,509

11

 

Tabcorp Holdings Ltd.

2,442

11

 

Sims Group Ltd.

1,150

11

 

Cochlear Ltd.

278

11

 

GPT Group

19,874

10

 

Boral Ltd.

3,135

9

 

Macquarie Goodman Group

10,753

7

 

Dexus Property Group NPV

12,611

6

 

Mirvac Group

8,198

5

 

Harvey Norman Holdings Ltd.

2,621

5

 

Qantas Airways Ltd.

1,972

3

 

 

11

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Ansell Ltd.

323

3

 

Sigma Pharmaceuticals Ltd.

3,101

3

 

Goodman Fielder Ltd.

2,239

2

 

Billabong International Ltd.

291

2

 

Commonwealth Property

 

 

 

Office Fund

2,531

2

 

Asciano Group

1,564

2

*

Paladin Resources Ltd.

1,382

2

 

Bank of Queensland Ltd.

234

2

 

SP Ausnet

2,838

2

 

AWB Ltd.

1,109

2

 

Futuris Corp., Ltd.

2,478

2

 

Macquarie Airports Group

1,295

2

*

Iluka Resources Ltd.

685

2

 

Flight Centre Ltd.

174

2

 

Challenger Financial

 

 

 

Services Group Ltd.

1,429

2

 

John Fairfax Holdings Ltd.

1,211

2

 

Caltex Australia Ltd.

238

2

 

Downer EDI Ltd.

459

2

 

Consolidated Media

 

 

 

Holdings, Ltd.

1,000

1

 

Energy Resources

 

 

 

of Australia Ltd.

132

1

 

Macquarie Office Trust

3,823

1

 

Boart Longyear Group

2,322

1

 

Macquarie CountryWide Trust

3,540

1

 

Babcock & Brown

 

 

 

Infrastructure Group

4,196

1

 

Babcock & Brown Ltd.

436

 

 

 

3,983

Austria (0.1%)

 

 

 

Erste Bank der

 

 

 

Oesterreichischen

 

 

 

Sparkassen AG

1,669

44

 

Wienerberger AG

2,465

41

 

Voestalpine AG

1,564

38

 

Telekom Austria AG

2,930

36

 

OMV AG

784

25

*

Atrium European

 

 

 

Real Estate

5,508

25

 

Oesterreichische

 

 

 

Elektrizitaetswirtschafts

 

 

 

AG Class A

88

4

 

Vienna Insurance Group

153

4

 

Raiffeisen International

 

 

 

Bank-Holding AG

81

3

*

IMMOFINANZ AG

1,577

2

*

IMMOEAST Immobilien Anlagen AG

865

1

 

 

 

223

Belgium (0.3%)

 

 

 

Delhaize Group

3,281

185

^

InBev NV

1,168

47

 

KBC Bank &Verzekerings Holding

953

41

 

 

 

Market

 

 

Value

 

Shares

($000)

Dexia

7,480

40

Groupe Bruxelles

 

 

Lambert SA

483

35

Umicore

1,649

29

Belgacom SA

629

22

Solvay SA

105

10

Mobistar SA

131

9

UCB SA

334

8

Fortis

7,141

8

Colruyt NV

36

8

Fortis (Amsterdam Shares)

6,569

8

Compagnie Nationale

 

 

a Portefeuille

139

8

 

 

458

Brazil (1.2%)

 

 

Companhia de Bebidas

 

 

das Americas ADR

4,859

207

Banco Itau Holding

 

 

Financeira SA ADR

18,445

204

Banco Bradesco SA ADR

14,399

168

Embraer-Empresa Brasileira

 

 

de Aeronautica SA ADR

8,011

168

Petroleo Brasileiro SA ADR

5,723

154

Petroleo Brasileiro SA

 

 

Series A ADR

6,832

151

Companhia Vale do

 

 

Rio Doce ADR

10,234

134

Companhia Vale do

 

 

Rio Doce Sponsored ADR

11,203

131

Companhia Siderurgica

 

 

Nacional SA ADR

7,905

108

Petroleo Brasileiro SA Pfd.

8,937

96

Tele Norte Leste

 

 

Participacoes ADR

6,171

84

Brasil Telecom

 

 

Participacoes SA ADR

2,127

73

Gerdau SA ADR

9,962

64

Tim Participacoes SA ADR

4,352

63

Petroleo Brasileiro SA

3,500

46

Itausa-Investimentos Itau SA

4,800

15

BM&F BOVESPA SA

4,552

12

Centrais Electricas

 

 

Brasileiras SA

1,000

12

Banco do Brasil SA

1,500

10

Companhia de Concessoes Rodoviarias

1,000

10

Usiminas-Usinas Siderugicas de Minas Gerais SA Pfd.

600

8

Natura Cosmeticos SA

900

8

Tractebel Energia SA

800

6

Redecard SA

574

6

Perdigao SA

400

6

All America Latina Logistica

1,200

6

Weg SA

953

5

Metalurgica Gerdau SA

600

5

Bradespar SA Pfd.

600

5

 

12

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Ultrapar Participacoes S.A.

274

5

 

Cyrela Brazil Realty SA

736

4

 

Usinas Siderurgicas

 

 

 

de Minas Gerais SA

300

3

 

Aracruz Celulose SA Pfd.

 

 

 

B Shares

2,000

2

 

 

 

1,979

Canada (3.1%)

 

 

 

Royal Bank of Canada

10,700

416

 

Toronto-Dominion Bank

6,500

307

 

EnCana Corp.

5,700

290

 

Manulife Financial Corp.

13,250

265

 

Bank of Nova Scotia, Halifax

7,500

250

*

Research in Motion Ltd.

4,330

219

 

Canadian Natural

 

 

 

Resources Ltd.

4,330

218

 

Potash Corp. of

 

 

 

Saskatchewan, Inc.

2,270

193

 

Suncor Energy, Inc.

6,728

162

 

Canadian National

 

 

 

Railway Co.

3,700

161

 

Sun Life Financial Services

 

 

 

of Canada

6,800

160

 

Canadian Imperial Bank

 

 

 

of Commerce

3,400

154

 

Barrick Gold Corp.

6,530

149

 

TransCanada Corp.

4,650

140

 

Bank of Montreal, Quebec

3,800

136

 

Rogers Communications, Inc.

 

 

 

Class B

3,700

107

 

Goldcorp Inc.

5,680

106

 

Petro-Canada

3,800

95

 

Canadian Utilities Ltd.

2,700

95

 

Brookfield Asset

 

 

 

Management Inc.

5,100

89

 

Enbridge Inc.

2,490

86

 

Imperial Oil Ltd.

2,390

85

 

Canadian Pacific Railway Ltd.

1,700

77

 

Talisman Energy, Inc.

7,700

76

 

Power Corp. of Canada

3,290

72

*

CGI Group Inc.

8,500

68

 

Agrium, Inc.

1,700

65

 

Husky Energy Inc.

2,060

62

 

BCE Inc.

2,100

61

 

Nexen Inc.

3,700

59

 

Shaw Communications Inc.

3,320

58

 

Power Financial Corp.

2,260

57

 

Shoppers Drug Mart Corp.

1,460

56

 

Cameco Corp.

3,400

56

 

Kinross Gold Corp.

5,100

53

 

National Bank of Canada

1,230

46

 

Bombardier Inc. Class B

11,900

46

 

Teck Cominco Ltd. Class B

3,700

37

 

Thomson Reuters Corp.

1,260

30

 

Magna International

830

28

 

Great-West Lifeco Inc.

1,200

25

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Canadian Tire Corp. Class A

600

23

 

Loblaw Cos., Ltd.

900

22

 

TransAlta Corp.

1,060

21

 

Brookfield Properties Corp.

2,000

20

 

IGM Financial, Inc.

600

18

 

George Weston Ltd.

100

5

 

Saputo Inc.

200

4

 

Finning International Inc.

300

4

 

Telus Communications Inc.

100

4

 

Telus Corp.-Non Voting Shares 100

 

3

 

Biovail Corp.

300

3

*

MDS Inc.

200

2

 

Bombardier Inc. Class A

415

2

 

Nova Chemicals Corp.

100

1

*

Nortel Networks Corp.

900

1

 

 

 

5,048

Chile (0.2%)

 

 

Empresa Nacional de

 

 

 

Electricidad SA ADR

4,437

165

 

Enersis SA

114,300

31

 

Empresas Copec SA

2,763

23

 

S.A.C.I. Falabella SA

7,400

20

 

Sociedad Quimica y

 

 

 

Minera de Chile SA

353

7

 

CAP SA

253

3

 

Sociedad Quimica y

 

 

 

Minera de Chile SA ADR

100

2

 

 

 

251

China (1.2%)

 

 

China Mobile

 

 

 

(Hong Kong) Ltd.

48,000

423

 

China Life

 

 

 

Insurance Co., Ltd.

57,000

152

 

PetroChina Co. Ltd.

180,000

135

 

China Unicom Ltd.

86,770

124

^

China Construction Bank

204,000

101

 

CNOOC Ltd.

112,000

92

 

China Petroleum &

 

 

 

Chemical Corp.

126,000

83

^

Bank of China

261,000

76

^

Ping An Insurance

 

 

 

(Group) Co. of China Ltd.

17,000

73

 

China Communications

 

 

 

Construction Co., Ltd.

85,000

60

 

China Merchants Bank Co.,

 

 

 

Ltd. Class H

34,000

52

 

China Shenhua Energy Co.

 

 

 

Ltd. H-Shares

27,000

51

 

Bank of Communications

 

 

 

Ltd. Class H

85,000

50

 

GOME Electrical Appliances Holdings Ltd.

240,000

48

 

China Telecom Corp. Ltd.

130,000

46

 

China Shipping Development Co.

34,000

34

 

China Coal Energy Co.

51,000

31

13

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Fujian Zijin Mining

 

 

 

Industry Co., Ltd.

102,000

31

 

CITIC Pacific Ltd.

37,000

30

 

Denway Motors Ltd.

82,000

20

 

Beijing Datang Power

 

 

 

Generation Co., Ltd.

48,000

18

 

Weiqiao Textile Co. Ltd.

79,000

16

 

BYD Co. Ltd.

8,500

14

 

China Merchants Holdings

 

 

 

International Co. Ltd.

6,000

14

*

China Railway

 

 

 

Construction Corp.

10,500

13

 

Huadian Power

 

 

 

International Corp. Ltd.

68,000

13

 

Aluminum Corp. of

 

 

 

China Ltd.

34,000

12

 

China Resources Land Ltd.

12,000

12

 

China Resources

 

 

 

Enterprise Ltd.

6,000

12

 

China Resources Power

 

 

 

Holdings Co., Ltd.

6,000

12

 

Huaneng Power

 

 

 

International, Inc.

 

 

 

H Shares

24,000

12

 

Lenovo Group Ltd.

32,000

10

 

Beijing Enterprises

 

 

 

Holdings Ltd.

2,000

8

 

China Communication

 

 

 

Services Corp. Ltd.

14,000

7

 

Beijing Capital International

 

 

 

Airport Co., Ltd.

12,000

7

*

Anhui Conch Cement Co. Ltd.

2,000

6

 

Shanghai Industrial

 

 

 

Holding Ltd.

4,000

6

 

Guangzhou R&F

 

 

 

Properties Co. Ltd.

11,600

6

 

China Mengniu Dairy Co., Ltd.

3,000

3

 

Li Ning Co., Ltd.

2,000

3

 

Yanzhou Coal Mining Co.

 

 

 

Ltd. H Shares

4,000

3

 

China COSCO

 

 

 

Holdings Co., Ltd.

3,500

2

 

Air China Ltd.

6,000

2

*

PICC Property and

 

 

 

Casualty Co., Ltd.

6,000

2

 

Cosco Pacific Ltd.

2,000

1

 

Angang Steel Co., Ltd.

2,000

1

 

China Oilfield Services Ltd.

2,000

1

 

Jiangxi Copper Co. Ltd.

2,000

1

 

Inner Mongolia Yitai

 

 

 

Coal Co., Ltd.

400

1

 

 

 

1,930

Colombia (0.1%)

 

 

 

Bancolombia SA ADR

6,372

124

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Czech Republic (0.1%)

 

 

 

Ceske Energeticke

 

 

 

Zavody a.s.

1,579

69

 

Cesky Telecom a.s.

705

15

 

Komercni Banka a.s.

82

12

 

Zentiva NV

200

12

 

Unipetrol a.s.

206

2

 

 

 

110

Denmark (0.4%)

 

 

 

Novo Nordisk A/S B Shares

4,825

259

 

Coloplast A/S B Shares

1,204

87

 

Danske Bank A/S

4,800

71

*

Vestas Wind Systems A/S

1,700

70

 

Danisco A/S

1,252

54

 

AP Moller-Maersk A/S

 

 

 

B Shares

7

40

 

AP Moller-Maersk A/S

 

 

 

A Shares

4

23

 

Carlsberg A/S B Shares

400

16

 

Novozymes A/S

150

11

 

FLS Industries A/S B Shares

200

8

*

Jyske Bank A/S

150

4

 

 

 

643

Egypt (0.0%)

 

 

 

Orascom Telecom Holding SAE GDR

1,241

39

 

Orascom Construction Industries GDR

493

33

 

 

 

72

Finland (0.5%)

 

 

 

Nokia Oyj

30,443

466

 

Stora Enso Oyj R Shares

12,610

117

 

Sampo Oyj A Shares

4,540

91

 

Fortum Oyj

2,240

55

 

Wartsila Oyj B Shares

2,023

51

 

UPM-Kymmene Oyj

2,720

39

 

Metso Oyj

2,363

32

 

Kone Oyj

1,100

25

 

Neste Oil Oyj

450

7

 

Nokian Renkaat Oyj

383

5

 

Rautaruuki Oyj

200

3

 

Outokumpu Oyj A Shares

200

2

 

 

 

893

France (4.5%)

 

 

 

Total SA

19,166

1,054

 

Gaz de France

13,351

594

 

BNP Paribas SA

7,254

524

 

Sanofi-Aventis

7,656

485

 

France Telecom SA

15,664

395

 

AXA

16,513

315

 

Societe Generale Class A

4,733

258

 

Vivendi SA

9,583

250

 

Carrefour SA

5,339

226

 

Groupe Danone

3,999

223

 

L’Oreal SA

2,652

201

 

 

14

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Air Liquide SA

2,164

187

 

LVMH Louis Vuitton

 

 

 

Moet Hennessy

2,782

185

 

Vinci SA

4,407

159

 

Cie. de St. Gobain SA

3,270

126

 

Electricite de France

2,056

123

 

Unibail Co.

813

122

 

Schneider Electric SA

1,949

117

 

Pernod Ricard SA

1,752

114

 

Alstom

2,237

111

 

Credit Agricole SA

7,136

103

 

Bouygues SA

2,374

101

 

Hermes International

769

99

 

Accor SA

2,399

93

 

Veolia Environnement

3,636

90

 

Lafarge SA

1,182

78

 

Societe BIC SA

1,351

71

 

Pinault-Printemps-Redoute SA

1,116

71

*

Suez Environnement SA

3,687

70

 

Essilor International SA

1,445

65

 

Cap Gemini SA

1,513

49

 

Vallourec SA

418

47

 

Sodexho Alliance SA

962

46

 

Renault SA

1,492

46

 

STMicroelectronics NV

5,469

45

 

Lagardere S.C.A.

1,075

43

 

PSA Peugeot Citroen

1,598

43

*

Alcatel-Lucent

16,492

43

 

Compagnie Generale des

 

 

 

Etablissements Michelin SA

717

37

 

Technip SA

1,122

34

 

Eiffage SA

714

27

 

CNP Assurances

326

26

 

Casino Guichard-Perrachon SA

314

22

 

Christian Dior SA

321

19

 

Dassault Systemes SA

446

18

 

Thales SA

423

17

 

Air France

1,112

16

 

Safran SA

1,119

14

 

Publicis Groupe SA

567

13

*

Compagnie Generale de

 

 

 

Geophysique SA

551

9

 

Societe Television Francaise 1

672

9

*

Eutelsat Communications

400

9

 

Eramet SLN

40

8

 

Societe des Autoroutes Paris-Rhin-Rhone

114

7

 

Natixis

3,212

7

 

Bureau Veritas SA

189

7

 

Klepierre

286

7

 

PagesJaunes SA

650

6

 

Aeroports de Paris (ADP)

60

4

 

Imerys SA

78

4

 

Legrand SA

203

3

 

Atos Origin SA

145

3

 

Eurazeo

53

3

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Arkema

116

3

 

Gecina SA

38

3

 

Wendel Investissement

47

2

 

Valeo SA

99

2

 

 

 

7,311

Germany (3.4%)

 

 

 

Volkswagen AG

1,301

828

 

E.On AG

15,183

569

 

Siemens AG

7,325

431

 

Deutsche Telekom AG

26,547

389

 

Bayer AG

5,953

326

 

Daimler AG (Registered)

7,857

266

 

Allianz AG

3,513

258

 

SAP AG

7,347

257

 

RWE AG

3,092

253

 

BASF AG

7,647

252

 

Muenchener

 

 

 

Rueckversicherungs-

 

 

 

Gesellschaft AG (Registered)

1,823

237

 

Deutsche Bank AG

4,699

176

 

Deutsche Boerse AG

1,830

143

 

Deutsche Post AG

8,364

92

 

Linde AG

1,036

86

 

Fresenius Medical Care AG

1,797

80

 

Porsche AG

668

58

 

Henkel AG & Co. KGaA

1,938

55

 

ThyssenKrupp AG

2,918

55

 

Commerzbank AG

5,192

55

 

Bayerische Motoren

 

 

 

Werke AG

2,135

54

 

Man AG

1,094

53

 

Volkswagen AG Pfd.

838

52

 

K&S AG

1,244

48

 

Adidas AG

1,340

47

 

Fresenius AG Pfd.

733

47

 

Beiersdorf AG

822

43

 

Merck KGaA

448

40

 

Metro AG

1,082

35

 

Henkel KGaA

1,165

28

 

TUI AG

2,334

28

 

Deutsche Lufthansa AG

1,942

27

*

Infineon Technologies AG

7,463

23

 

Salzgitter AG

357

23

 

Continental AG Acceptance Line

217

15

 

Celesio AG

446

13

 

HeidelbergCement AG

162

12

 

Lanxess

591

9

 

Continental AG

198

8

*

Q-Cells AG

208

8

 

Deutsche Postbank AG

373

8

 

Solarworld AG

259

6

 

Hamburger Hafen und Logistik AG

155

5

 

Hypo Real Estate Holding AG

566

4

 

Fresenius AS

58

3

 

15

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Hochtief AG

99

3

 

Fraport AG

93

3

 

Hannover

 

 

 

Rueckversicherung AG

114

3

 

Wacker Chemie AG

24

3

 

Altana AG

183

2

 

Suedzucker AG

160

2

 

Puma AG

10

2

 

Aachener & Muenchener

 

 

 

Beteiligungs AG (Bearer)

16

2

*

Arcandor AG

271

1

 

 

 

5,526

Greece (0.2%)

 

 

 

National Bank of

 

 

 

Greece SA ADR

28,356

124

 

Hellenic

 

 

 

Telecommunications

 

 

 

Organization SA ADR

8,874

64

 

Alpha Credit Bank SA

2,720

40

 

Bank of Piraeus

2,191

28

 

GEA Group AG

1,818

26

 

EFG Eurobank Ergasias

2,124

23

 

Greek Organization of

 

 

 

Football Prognostics

1,050

23

 

Marfin Financial Group SA

1,761

8

 

Titan Cement Co. SA

270

5

 

Public Power Corp.

350

4

 

Coca-Cola Hellenic

 

 

 

Bottling Co. SA

140

2

 

Hellenic Petroleum SA

220

2

*

Commercial Bank of

 

 

 

Greece SA

140

1

 

 

 

350

Hong Kong (1.2%)

 

 

 

Hutchison Whampoa Ltd.

34,000

184

^

Industrial and Commercial

 

 

 

Bank of China Ltd.

 

 

 

Class H

361,000

170

 

Cheung Kong Holdings Ltd.

17,000

163

 

Sun Hung Kai Properties Ltd.

17,000

149

 

Hang Seng Bank Ltd.

6,800

85

 

CLP Holdings Ltd.

12,000

81

 

Hong Kong Exchanges &

 

 

 

Clearing Ltd.

7,800

79

 

China Overseas Land &

 

 

 

Investment Ltd.

68,000

77

 

Hong Kong Electric

 

 

 

Holdings Ltd.

13,000

70

 

Li & Fung Ltd.

34,000

68

 

Hong Kong & China Gas Co., Ltd.

37,000

65

 

Swire Pacific Ltd. A Shares

8,500

60

 

Hang Lung Development Co., Ltd.

17,000

55

 

Esprit Holdings Ltd.

8,500

48

 

Shangri-La Asia Ltd.

34,000

48

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Tencent Holdings Ltd.

5,800

42

 

Hang Lung Properties Ltd.

17,000

42

 

Bank of East Asia Ltd.

20,400

41

 

Henderson Land

 

 

 

Development Co. Ltd.

9,000

33

 

Sino Land Co.

34,000

30

 

New World

 

 

 

Development Co., Ltd.

34,000

28

 

Boc Hong Kong Holdings Ltd.

22,500

26

 

Link REIT

14,000

25

 

Giordano International Ltd.

136,000

24

 

MTR Corp.

11,000

24

 

Hengan International

 

 

 

Group Co. Ltd.

6,000

17

 

Tingyi Holding Corp.

14,000

15

 

China Insurance International

 

 

 

Holdings Co., Ltd.

6,000

14

*

China Railway Group, Ltd.

23,000

13

 

Hopewell Holdings Ltd.

4,000

12

^

China Citic Bank

31,000

10

 

Jardine Matheson

 

 

 

Holdings Ltd.

400

9

 

Belle International

 

 

 

Holdings Ltd.

18,000

9

 

Wharf Holdings Ltd.

3,000

6

 

China National Building

 

 

 

Material Co., Ltd.

10,000

6

 

Cheung Kong Infrastructure

 

 

 

Holdings Ltd.

1,000

4

 

Cafe De Coral Holdings Ltd.

2,000

3

 

Yue Yuen Industrial

 

 

 

(Holdings) Ltd.

1,500

3

 

Hongkong Land Holdings Ltd.

1,000

3

*

CITIC International

 

 

 

Financial Holdings Ltd.

4,000

3

 

Cathay Pacific Airways Ltd.

2,000

2

 

Sinofert Holdings, Ltd.

4,000

2

 

Hutchinson Harbour Ring Ltd.

34,000

2

 

Hong Kong and Shanghai

 

 

 

Hotels Ltd.

2,000

2

 

PCCW Ltd.

5,000

2

 

Texwinca Holdings Ltd.

4,000

2

 

Sino-Ocean Land Holdings Ltd.

6,500

2

 

First Pacific Co. Ltd.

4,000

2

 

Hysan Development Co., Ltd.

1,000

2

 

Chinese Estates Holdings

2,000

2

 

Henderson Investment Ltd.

32,000

2

 

Public Financial Holdings Ltd.

4,000

1

 

Next Media Ltd.

8,000

1

 

Johnson Electric Holdings Ltd.

6,500

1

 

ASM Pacific Technology Ltd.

400

1

 

Lifestyle International Holdings, Ltd.

2,000

1

 

Techtronic Industries Co., Ltd.

3,500

1

 

Chong Hing Bank Ltd.

1,000

1

 

16

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Kerry Properties Ltd.

500

1

 

Great Eagle Holdings Ltd.

1,000

1

*

Foxconn International

 

 

 

Holdings Ltd.

3,000

1

 

Shenzhen International

 

 

 

Holdings Ltd.

32,500

1

 

Country Garden Holdings Co.

6,000

1

 

NWS Holdings Ltd.

1,000

1

 

Kingboard Chemical

 

 

 

Holdings Ltd.

500

1

 

Dah Sing Financial Group

400

1

 

C C Land Holdings Ltd.

5,000

1

 

Orient Overseas

 

 

 

International Ltd.

500

1

 

Fubon Bank (Hong Kong) Ltd.

4,000

1

 

Shun Tak Holdings Ltd.

4,000

1

 

Lee & Man Paper

 

 

 

Manufacturing Ltd.

2,000

1

 

Melco International

 

 

 

Development Corp.

3,000

1

*

Galaxy Entertainment

 

 

 

Group Ltd.

5,000

 

Kowloon Development Co., Ltd.

1,000

 

 

 

1,887

Hungary (0.1%)

 

 

 

MOL Hungarian

 

 

 

Oil and Gas Nyrt.

1,275

69

*

OTP Bank Nyrt.

2,068

34

 

Richter Gedeon Nyrt.

50

7

 

Magyar Tavkozlesi Nyrt.

1,050

4

 

 

 

114

India (0.8%)

 

 

 

Infosys Technologies Ltd. ADR

9,785

287

 

ICICI Bank Ltd. ADR

11,169

191

 

Reliance Industries Ltd. GDR

2,794

159

 

HDFC Bank Ltd. ADR

1,515

99

*

Bharti Airtel Ltd.

5,053

68

 

ITC Ltd.

19,265

61

 

Housing Development Finance Corp. Ltd.

1,467

53

 

Larsen & Toubro Ltd.

2,923

49

 

Bharat Heavy Electricals Ltd.

1,031

27

 

Oil and Natural Gas Corp. Ltd.

1,550

21

 

Reliance Communication Ventures

4,065

19

 

Hindustan Lever Ltd.

3,644

17

 

Axis Bank Ltd.

1,267

15

 

Tata Iron and Steel Co. Ltd.

3,213

14

 

NTPC Ltd.

4,167

12

 

Cipla Ltd.

3,233

12

 

Gail India Ltd.

2,538

11

 

Wipro Ltd. ADR

1,286

10

 

Reliance Industries Ltd.

335

9

*

Reliance Petroleum Ltd.

5,094

9

 

Bajaj Auto Ltd.

766

9

 

Hero Honda Motors Ltd.

516

8

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Reliance Power Ltd.

3,486

7

 

Hindalco Industries Ltd.

5,005

6

*

Essar Oil Ltd.

3,423

6

 

Grasim Industries Ltd.

282

6

 

Sterlite Industries (India) Ltd.

1,001

6

 

Reliance Capital Ltd.

423

6

*

United Spirits Ltd.

310

6

 

Asea Brown Boveri India Ltd.

482

5

 

Jindal Steel & Power Ltd.

308

5

 

Adani Exports, Ltd.

648

5

*

Cairn India Ltd.

1,785

5

 

Tata Power Co. Ltd.

332

5

 

Jaiprakash Associates Ltd.

3,081

5

 

Kotak Mahindra Bank

659

5

 

Siemens India Ltd.

744

4

 

Sesa Goa Ltd.

2,391

4

 

Tata Motors Ltd.

1,016

4

*

Idea Cellular Ltd.

4,138

4

 

Tata Consultancy Services Ltd.

297

3

 

Satyam Computer

 

 

 

Services Ltd. ADR

205

3

 

State Bank of India GDR

65

3

 

Indiabulls Financial

 

 

 

Services Ltd.

1,287

3

 

Infrastructure Development

 

 

 

Finance Co., Ltd.

2,050

2

 

GlaxoSmithKline

 

 

 

Pharmaceuticals (India) Ltd.

110

2

 

Sun Pharmaceutical

 

 

 

Industries Ltd.

100

2

 

Steel Authority of India Ltd.

1,016

2

*

Reliance Natural Resources, Ltd.

1,927

2

 

Reliance Energy Ltd.

172

2

 

Ranbaxy Laboratories Ltd.

448

2

 

DLF Ltd.

302

1

 

Glenmark Pharmaceuticals Ltd.

216

1

 

Aditya Birla Nuvo Ltd.

113

1

 

JSW Steel Ltd.

156

1

 

Aban Offshore Ltd.

50

1

 

Unitech, Ltd.

803

1

 

Suzlon Energy Ltd.

855

1

 

 

 

1,287

Indonesia (0.2%)

 

 

 

PT Bank Central Asia Tbk

308,000

75

 

PT Bumi Resources Tbk

220,500

44

 

PT Astra International Tbk

48,000

40

 

PT Telekomunikasi Indonesia Tbk

63,500

32

 

PT Bank Rakyat Indonesia Tbk

99,000

30

 

PT United Tractors Tbk

90,500

26

 

 

 

247

Ireland (0.2%)

 

 

 

CRH PLC

4,073

89

 

Allied Irish Banks PLC

7,939

42

*

Elan Corp. PLC

4,786

36

 

17

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Bank of Ireland

9,418

28

 

Anglo Irish Bank Corp. PLC

6,987

22

*

Ryanair Holdings PLC

5,954

21

 

Kerry Group PLC A Shares

612

14

 

Irish Life & Permanent PLC

840

3

 

 

 

255

Israel (0.3%)

 

 

 

Teva Pharmaceutical

 

 

 

Industries Ltd.

8,451

360

*

Check Point Software

 

 

 

Technologies Ltd.

3,400

69

 

Israel Chemicals Ltd.

6,069

61

 

Bezeq Israeli

 

 

 

Telecommunication

 

 

 

Corp., Ltd.

12,330

19

 

Bank Leumi Le-Israel

6,500

17

 

Bank Hapoalim Ltd.

5,540

13

 

Partner

 

 

 

Communications Co. Ltd.

600

11

 

United Mizrahi Bank Ltd.

1,500

8

 

Elbit Systems Ltd.

100

5

 

Cellcom Israel Ltd.

85

2

*

NICE Systems Ltd.

100

2

 

Makhteshim-Agan

 

 

 

Industries Ltd.

300

1

 

 

 

568

Italy (1.5%)

 

 

 

Eni SpA

21,894

522

 

Assicurazioni Generali SpA

10,773

272

 

Enel SpA

38,457

257

 

Intesa Sanpaolo SpA

65,931

241

 

UniCredit SpA

77,142

189

 

Telecom Italia SpA

97,101

111

 

Unione Di Banche

 

 

 

Italiane ScpA

4,246

72

 

Banco Popolare SpA

4,828

60

 

Mediolanum SpA

14,556

57

 

Unipol Gruppo

 

 

 

Finanziario SpA Pfd.

51,680

57

 

Bulgari SpA

7,516

56

 

Fondiaria-Sai SpA RNC

3,910

50

 

Fiat SpA

6,247

49

 

Autogrill SpA

6,093

49

 

Finmeccanica SpA

3,467

43

 

Saipem SpA

2,197

41

 

Telecom Italia SpA RNC

48,286

41

 

Mediobanca Banca di Credito Finanziaria SpA

3,253

37

 

Atlantia SpA

1,905

35

 

Banca Monte dei Paschi di Siena SpA

14,743

28

 

Italcementi SpA Risp.

3,944

27

 

Terna SpA

8,052

26

 

Snam Rete Gas SpA

4,277

22

 

Mediaset SpA

3,113

17

 

Parmalat SpA

8,951

16

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

A2A SpA

5,425

10

 

Luxottica Group SpA

429

9

 

Fondiari-Sai SpA

424

8

 

Alleanza Assicurazioni SpA

1,055

7

 

Banca Carige SpA

3,107

7

 

Pirelli & C. Accomandita

 

 

 

per Azioni SpA

16,215

6

 

IFIL Investments SpA

1,824

6

 

Banca Popolare di Milano SpA

647

4

*

Finmeccanica SpA

 

 

 

Rights Exp. 11/7/08

1,708

1

 

 

 

2,433

Japan (9.1%)

 

 

 

Toyota Motor Corp.

20,700

808

 

Mitsubishi UFJ

 

 

 

Financial Group

86,200

542

 

Canon, Inc.

10,100

353

 

Matsushita Electric

 

 

 

Industrial Co., Ltd.

19,000

306

 

Nintendo Co.

900

289

 

Tokyo Electric Power Co.

10,200

289

 

Honda Motor Co., Ltd.

11,000

274

 

Takeda Pharmaceutical Co. Ltd.

5,500

273

 

Mitsubishi Estate Co., Ltd.

15,000

268

 

Nippon Telegraph and

 

 

 

Telephone Corp.

62

253

 

NTT DoCoMo, Inc.

159

252

 

Sumitomo Mitsui

 

 

 

Financial Group, Inc.

62

249

 

East Japan Railway Co.

34

242

 

Kansai Electric Power Co., Inc.

8,500

213

 

Japan Tobacco, Inc.

60

213

 

Millea Holdings, Inc.

6,800

210

 

KDDI Corp.

34

204

 

Yakult Honsha Co., Ltd.

8,000

199

 

Sony Corp.

8,000

190

 

Shin-Etsu Chemical Co., Ltd.

3,400

181

 

Nippon Steel Corp.

50,000

168

 

Nomura Holdings Inc.

17,700

168

 

Mitsui & Co., Ltd.

17,000

165

 

Mitsui Sumitomo Insurance Group Holdings, Inc.

5,800

161

 

Seven and I Holdings Co., Ltd.

5,700

160

 

Mitsubishi Corp.

9,500

159

 

Mizuho Financial Group, Inc.

64

156

 

Nomura Research Institute, Ltd.

9,300

154

 

Bridgestone Corp.

8,500

149

 

Central Japan Railway Co.

17

140

 

Astellas Pharma Inc.

3,400

137

 

Higo Bank Ltd.

23,000

127

 

Chubu Electric Power Co.

4,700

123

 

Mitsui Fudosan Co., Ltd.

7,000

122

 

Fuji Photo Film Co., Ltd.

5,100

117

 

Murata Manufacturing Co., Ltd.

3,400

117

 

Kao Corp.

4,000

117

 

18

Total World Stock Index Fund

 

 

 

Market

 

 

Value

 

Shares

($000)

Fanuc Co., Ltd.

1,700

113

Seino Transportation Co., Ltd.

23,000

111

Mitsubishi Heavy

 

 

Industries Ltd.

34,000

109

Sumitomo Corp.

11,900

105

Daiichi Sankyo Co., Ltd.

5,100

105

Isuzu Motors Ltd.

59,000

104

Nissan Motor Co., Ltd.

20,400

101

Electric Power

 

 

Development Co., Ltd.

3,400

101

Kyocera Corp.

1,700

100

Komatsu Ltd.

9,000

99

Fukuyama

 

 

Transporting Co., Ltd.

23,000

98

JFE Holdings, Inc.

3,700

94

Sagami Railway

23,000

92

Itochu Corp.

17,000

90

Hitachi Ltd.

19,000

89

Sumitomo Metal

 

 

Industries Ltd.

34,000

87

Orix Corp.

850

87

Yamada Denki Co., Ltd.

1,530

83

Rohm Co., Ltd.

1,700

82

Yahoo Japan Corp.

238

79

Circle K Sunkus Co., Ltd.

4,600

78

Toho Gas Co., Ltd.

13,000

75

Suzuki Motor Corp.

5,100

75

Mitsui OSK Lines Ltd.

14,000

73

Kokuyo Co., Ltd.

10,300

73

Daito Trust

 

 

Construction Co., Ltd.

1,700

72

Nippon Oil Corp.

17,000

70

Tokyo Gas Co., Ltd.

16,000

69

Mitsubishi Chemical

 

 

Holdings Corp.

17,000

69

Denso Corp.

3,500

68

Mitsubishi Electric Corp.

11,000

68

Fujitsu Ltd.

17,000

67

Kyushu Electric Power Co., Inc.

2,900

66

Kirin Brewery Co., Ltd.

6,000

66

Marubeni Corp.

17,000

66

Nippon Paint Co., Ltd.

17,000

66

Toshiba Corp.

18,000

65

T & D Holdings, Inc.

1,500

57

Tohoku Electric Power Co.

2,500

56

Haseko Corp.

59,500

54

West Japan Railway Co.

12

53

Sumitomo Chemical Co.

17,000

52

Daiwa Securities Group Inc.

9,000

51

Softbank Corp.

5,100

50

Secom Co., Ltd.

1,300

50

Sumitomo Realty &

 

 

Development Co.

3,000

49

Eisai Co., Ltd.

1,500

49

Chugoku Electric Power Co., Ltd.

2,000

48

Hankyu Corp.

10,000

47

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Aeon Co., Ltd.

4,800

46

*

Mitsubishi Motors Corp.

33,000

46

 

Shikoku Electric Power

1,500

44

 

Asahi Breweries Ltd.

2,600

43

 

Sharp Corp.

6,000

43

 

Fast Retailing Co., Ltd.

400

43

 

Sumitomo Trust &

 

 

 

Banking Co., Ltd.

9,000

42

 

Shiseido Co., Ltd.

2,000

41

 

Bank of Yokohama Ltd.

8,000

39

 

Mitsubishi Materials Corp.

17,000

38

 

Keyence Corp.

200

38

 

Daikin Industries Ltd.

1,700

38

 

SMC Corp.

400

38

 

Toray Industries, Inc.

8,000

37

 

Sojitz Holdings Corp.

22,100

37

 

Taisho Pharmaceutical Co.

2,000

36

 

Dai-Nippon Printing Co., Ltd.

3,000

35

 

Shizuoka Bank Ltd.

4,000

35

 

Ajinomoto Co., Inc.

4,000

35

 

Hokuriku Electric Power Co.

1,300

34

 

Shionogi & Co., Ltd.

2,000

34

 

Resona Holdings Inc.

32

34

 

Terumo Corp.

800

33

 

Yamato Holdings Co., Ltd.

3,000

33

 

Casio Computer Co.

5,100

33

 

Ricoh Co.

3,000

32

 

Osaka Gas Co., Ltd.

9,000

32

 

Ibiden Co., Ltd.

1,700

32

 

Tokyu Corp.

8,000

31

 

Asahi Glass Co., Ltd.

5,000

31

 

Ono Pharmaceutical Co., Ltd.

700

31

 

Hoya Corp.

1,700

31

 

Sumitomo Metal Mining Co.

4,000

30

 

Odakyu Electric Railway Co.

4,000

29

 

Nikon Corp.

2,000

28

 

Sompo Japan Insurance Inc.

4,000

28

^

Kintetsu Corp.

7,000

27

 

Toyo Suisan Kaisha, Ltd.

1,000

26

 

Nippon Yusen

 

 

 

Kabushiki Kaisha Co.

5,000

24

 

NEC Corp.

8,000

24

 

Tokyo Electron Ltd.

700

23

 

Inpex Holdings, Inc.

4

23

 

Keihin Electric Express

 

 

 

Railway Co., Ltd.

3,000

23

 

Mitsumi Electric Co., Ltd.

1,700

22

 

Sumitomo Electric Industries Ltd.

2,600

21

 

Hokkaido Electric Power Co., Ltd.

900

20

 

Sekisui House Ltd.

2,000

20

 

Konica Minolta Holdings, Inc.

3,000

20

 

Olympus Corp.

1,000

19

 

Nipponkoa Insurance Co., Ltd.

3,000

18

 

Daiwa House Industry Co., Ltd.

2,000

18

 

19

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Mediceo Paltac

 

 

 

Holdings Co., Ltd.

1,500

16

 

Nidec Corp.

300

16

 

FamilyMart Co., Ltd.

400

16

 

Mitsui Trust Holding Inc.

4,000

16

 

OJI Paper Co., Ltd.

4,000

15

 

Tobu Railway Co., Ltd.

3,000

15

 

Kubota Corp.

3,000

15

 

Asahi Kasei Corp.

4,000

15

 

Chiba Bank Ltd.

3,000

15

 

Toppan Printing Co., Ltd.

2,000

15

 

Lawson Inc.

300

15

 

Kobe Steel Ltd.

9,000

15

 

Omron Corp.

1,000

14

 

The Chugoku Bank, Ltd.

1,000

14

 

Nippon Meat Packers, Inc.

1,000

14

 

TDK Corp.

400

14

 

Toho Co., Ltd.

700

13

 

Nitto Denko Corp.

600

13

 

Fukuoka Financial Group, Inc.

4,000

13

 

NTT Data Corp.

4

13

 

JTEKT Corp.

1,700

13

 

JS Group Corp.

1,000

13

 

Benesse Corp.

300

13

 

Trend Micro Inc.

500

12

 

Nippon Express Co., Ltd.

3,000

12

 

Seiko Epson Corp.

800

12

 

Kuraray Co., Ltd.

1,500

11

 

Kurita Water Industries Ltd.

500

11

*

Japan Airlines System Co.

5,000

11

 

Chugai Pharmaceutical Co., Ltd.

800

11

*

Isetan Mitsukoshi

 

 

 

Holdings Ltd.

1,200

11

 

The Hiroshima Bank, Ltd.

3,000

11

 

Nissha Printing Co., Ltd.

200

11

 

Kawasaki Heavy Industries Ltd.

6,000

11

 

The Iyo Bank, Ltd.

1,000

11

 

JGC Corp.

1,000

11

*

Sanyo Electric Co., Ltd.

7,000

11

 

Tanabe Seiyaku Co., Ltd.

1,000

11

 

Bank of Kyoto Ltd.

1,000

11

 

NGK Insulators Ltd.

1,000

10

 

Santen Pharmaceutical Co., Ltd.

400

10

 

JSR Corp.

900

10

 

Kikkoman Corp.

1,000

10

 

Shinko Securities Co., Ltd.

4,000

10

 

Dentsu Inc.

6

10

 

Nippon Sheet Glass Co., Ltd.

3,000

10

 

Sony Financial Holdings, Inc.

3

10

 

Yamaguchi Financial Group, Inc.

1,000

10

 

The Suruga Bank, Ltd.

1,000

9

 

Nagoya Railroad Co., Ltd.

3,000

9

 

Taisei Corp.

4,000

9

 

Amada Co., Ltd.

2,000

9

 

 

 

Market

 

 

Value

 

Shares

($000)

Nippon Mining Holdings Inc.

3,000

9

Makita Corp.

500

9

Konami Corp.

500

9

Toyoda Automatic

 

 

Loom Works Ltd.

400

9

J. Front Retailing Co., Ltd.

2,000

9

Stanley Electric Co.

700

9

Matsushita Electric Works, Ltd.

1,000

9

Alfresa Holdings Corp.

200

9

Hirose Electric Co., Ltd.

100

9

Toyo Seikan Kaisha Ltd.

700

9

Advantest Corp.

600

9

Nissin Food Products Co., Ltd.

300

9

Cosmo Oil Co., Ltd.

4,000

9

Credit Saison Co., Ltd.

800

8

TonenGeneral Sekiyu K.K.

1,000

8

Kinden Corp.

1,000

8

Hisamitsu

 

 

Pharmaceutical Co. Inc.

200

8

Kyowa Hakko Kogyo Co.

1,000

8

NTT Urban Development Corp.

8

8

Brother Industries Ltd.

1,200

8

Ushio Inc.

600

8

Nissan Chemical Industries, Ltd.

1,000

8

Marui Co., Ltd.

1,300

8

Takashimaya Co.

1,000

8

Shinsei Bank, Ltd.

5,000

8

Hitachi Metals Ltd.

1,000

8

NTN Corp.

2,000

7

Daihatsu Motor Co., Ltd.

1,000

7

IHI Corp.

6,000

7

Uni-Charm Corp.

100

7

Oriental Land Co., Ltd.

100

7

Japan Steel Works Ltd.

1,000

7

Toto Ltd.

1,000

7

Shimadzu Corp.

1,000

7

Maruichi Steel Tube Ltd.

300

7

Mazda Motor Corp.

3,000

7

Daido Steel Co., Ltd.

2,000

6

Nippon Sanso Corp.

1,000

6

Nippon Electric Glass Co., Ltd.

1,000

6

Sekisui Chemical Co.

1,000

6

Idemitsu Kosan Co. Ltd.

100

6

Tokyu Land Corp.

2,000

6

Sapporo Holdings Ltd.

1,000

6

Nisshin Seifun Group Inc.

500

5

Aisin Seiki Co., Ltd.

300

5

Keio Electric Railway Co., Ltd.

1,000

5

Gunma Bank Ltd.

1,000

5

AEON Mall Co., Ltd.

200

5

Shimizu Corp.

1,000

5

The Hachijuni Bank Ltd.

1,000

5

Ohbayashi Corp.

1,000

5

Joyo Bank Ltd.

1,000

5

 

20

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Keihan Electric

 

 

 

Railway Co., Ltd.

1,000

5

 

Sankyo Co., Ltd.

100

4

 

Aioi Insurance Co., Ltd.

1,000

4

 

NSK Ltd.

1,000

4

 

Kawasaki Kisen Kaisha Ltd.

1,000

4

 

Citizen Watch Co., Ltd.

700

4

 

All Nippon Airways Co., Ltd.

1,000

4

 

Mitsubishi Gas Chemical Co.

1,000

4

 

Mizuho Trust &

 

 

 

Banking Co., Ltd.

3,000

4

 

Fuji Heavy Industries Ltd.

1,000

4

 

Mitsui Chemicals, Inc.

1,000

3

 

Namco Bandai Holdings Inc.

300

3

 

Showa Denko K.K.

2,000

3

 

Furukawa Electric Co.

1,000

3

 

Sumitomo Heavy

 

 

 

Industries Ltd.

1,000

3

 

Kajima Corp.

1,000

3

 

Shimano, Inc.

100

3

 

THK Co., Inc.

200

3

 

Nippon Paper Group, Inc.

1

3

 

Teijin Ltd.

1,000

3

 

Yamato Kogyo Co., Ltd.

100

2

 

Yamaha Motor Co., Ltd.

200

2

 

Sumco Corp.

200

2

 

Ube Industries Ltd.

1,000

2

 

Hokuhoku Financial

 

 

 

Group, Inc.

1,000

2

 

Yamaha Corp.

200

2

 

Promise Co., Ltd.

100

2

 

SBI Holdings, Inc.

14

2

 

Nisshin Steel Co.

1,000

1

 

Hitachi Construction

 

 

 

Machinery Co.

100

1

 

Toyota Tsusho Corp.

100

1

*

Elpida Memory Inc.

100

1

 

 

 

14,702

Luxembourg (0.2%)

 

 

 

ArcelorMittal (Paris Shares)

8,110

211

 

SES Global Fiduciary

 

 

 

Depositary Receipts

5,478

99

 

Millicom International

 

 

 

Cellular SA

580

23

 

RTL Group

121

6

*

Reinet Investments SA

 

 

 

(South Africa Line)

2,638

3

 

 

 

342

Malaysia (0.3%)

 

 

 

Public Bank Bhd.

30,900

73

 

Sime Darby Bhd.

41,200

73

 

Malayan Banking Bhd.

33,400

51

 

Bumiputra-Commerce Holdings Bhd.

28,200

49

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Malaysia International

 

 

 

Shipping Corp., Bhd.

 

 

 

(Foreign)

14,400

33

*

TM International Bhd.

24,700

32

 

IOI Corp. Bhd.

39,400

31

 

Genting Bhd.

24,100

31

 

YTL Power International Bhd.

37,237

18

 

Berjaya Sports Toto Bhd.

14,000

17

 

UMW Holdings Malaysia Bhd.

10,500

16

 

Resorts World Bhd.

18,000

13

 

YTL Corp., Bhd.

7,200

13

 

PLUS Expressways Bhd.

16,700

13

 

Petronas Gas Bhd.

4,500

12

 

Kuala Lumpur Kepong Bhd.

5,000

12

 

British American Tobacco Bhd.

1,000

12

 

PPB Group Bhd.

5,100

11

 

Digi.com Bhd.

1,900

10

 

Tenaga Nasional Bhd.

5,700

10

 

AMMB Holdings Bhd.

15,100

9

 

Telekom Malaysia Bhd.

3,000

3

 

SP Setia Bhd.

3,300

3

 

Hong Leong Bank Bhd.

1,700

2

 

Petronas Dagangan Bhd.

1,300

2

 

Malaysia Mining Corp., Bhd.

4,200

2

 

Tanjong Public Ltd. Co.

700

2

 

Parkson Holdings, Bhd.

2,100

2

 

Alliance Financial Group Bhd.

3,800

2

 

Astro All Asia Networks PLC

2,900

2

 

Gamuda Bhd.

3,900

2

 

IJM Corp. Bhd.

2,000

1

*

IJM Land Corp. Bhd.

 

 

 

Warrants Exp. 9/11/13

200

 

 

 

562

Mexico (0.5%)

 

 

 

America Movil SA de CV

173,733

269

 

Telefonos de Mexico SA

141,100

127

 

Wal-Mart de Mexico SA

33,600

90

 

Cemex SAB de CV ADR

9,741

74

 

Grupo Televisa SA CPO

20,400

72

 

Grupo Mexico SA de CV

86,836

68

 

Grupo Financerio

 

 

 

Banorte SA de CV

35,700

65

 

Fomento Economico

 

 

 

Mexicano UBD

23,800

60

 

Telmex Internacional

 

 

 

SAB de CV

51,153

27

*

Carso Global Telecom

 

 

 

SAB de CV

3,000

11

 

Grupo Elektra SA de CV

200

5

 

Grupo Financiero Inbursa, SA de CV

1,900

5

 

Grupo Carso SA de CV Series A1

1,400

4

 

Grupo Modelo SA

1,000

3

 

Industrias Penoles SA de CV

300

3

 

 

 

883

 

21

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Netherlands (1.0%)

 

 

 

Unilever NV

12,410

299

 

Koninklijke KPN NV

14,446

204

 

ING Groep NV

16,559

155

 

Koninklijke (Royal) Philips

 

 

 

Electronics NV

7,943

147

 

Reed Elsevier NV

9,275

124

 

Koninklijke Ahold NV

10,744

115

 

TNT NV

5,270

111

 

Akzo Nobel NV

2,290

95

 

Aegon NV

14,314

60

 

ASML Holding NV

2,874

50

 

Heineken NV

1,315

44

^

European Aeronautic

 

 

 

Defence and Space Co.

2,621

44

 

Koninklijke DSM NV

1,209

34

 

Wolters Kluwer NV

1,541

27

 

Heineken Holding NV

795

24

 

Corio NV

205

11

 

Randstad Holding NV

442

9

 

SBM Offshore NV

476

8

 

Fugro NV

218

8

 

 

 

1,569

New Zealand (0.1%)

 

 

 

Fisher & Paykel Appliances

 

 

 

Holdings Ltd.

59,364

47

 

Auckland International

 

 

 

Airport Ltd.

15,074

16

 

Telecom Corp. of New Zealand Ltd.

10,034

13

 

Fletcher Building Ltd.

2,585

9

 

Contact Energy Ltd.

1,637

7

 

 

 

92

Norway (0.3%)

 

 

 

StatoilHydro ASA

8,770

176

 

Orkla ASA

10,200

68

 

Yara International ASA

2,550

53

 

Telenor ASA

6,800

41

 

Norsk Hydro ASA

8,500

35

 

DnB NOR ASA

5,700

33

 

Seadrill Ltd.

3,400

33

 

Storebrand ASA

10,200

24

*

Renewable Energy Corp. AS

300

3

 

Aker Solutions ASA

490

3

 

 

 

469

Peru (0.0%)

 

 

 

Compania de Minas Buenaventura SA ADR

5,066

64

 

 

 

 

Philippines (0.0%)

 

 

 

Ayala Land, Inc.

106,300

13

 

Bank of Philippine Islands

14,136

12

 

Ayala Corp.

2,000

10

 

SM Investments Corp.

1,000

4

 

SM Prime Holdings, Inc.

18,000

3

 

Manila Electric Co.

2,000

2

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Banco De Oro

3,000

2

 

Metropolitan Bank & Trust Co.

3,000

1

 

 

 

47

Poland (0.1%)

 

 

 

Powszechna Kasa

 

 

 

Oszczednosci Bank

 

 

 

Polski SA

7,005

79

 

Bank Polska Kasa Opieki

 

 

 

Grupa Pekao SA

1,655

75

 

Telekomunikacja Polska SA

2,100

16

 

Polski Koncern Naftowy SA

993

10

 

KGHM Polska Miedz SA

867

10

 

Polish Oil & Gas

7,942

9

 

Bank Zachodni WBK SA

200

9

 

Bank Handlowy W Warszawie

362

6

*

Getin Holding SA

2,440

5

 

 

 

219

Portugal (0.2%)

 

 

 

Electricidade de Portugal SA

29,070

99

 

Portugal Telecom SGPS SA

9,282

61

 

Zon Multimedia Servicos

 

 

 

de Telecomunicacoes

 

 

 

e Multimedia SGPS SA

8,466

43

 

Banco Comercial

 

 

 

Portugues SA

24,038

28

 

Banco BPI SA

8,262

17

 

Brisa-Auto Estradas

 

 

 

de Portugal SA

1,369

10

 

Galp Energia, SGPS,

 

 

 

SA B shares

506

5

 

 

 

263

Russia (0.7%)

 

 

 

OAO Gazprom

 

 

 

Sponsored ADR

13,485

269

 

VTB Bank OJSC GDR

45,050

142

 

LUKOIL Sponsored ADR

3,338

128

 

Surgutneftegaz OJSC ADR

19,074

123

 

Rosneft Oil Co. GDR

25,055

115

*

Gazprom

14,457

70

 

MMC Norilsk Nickel ADR

6,222

62

*

LUKOIL

1,420

53

 

Sberbank

44,709

49

 

OAO Vimpel-Communications Sponsored ADR

2,740

40

 

Tatneft GDR

476

21

*

Mobile TeleSystems

4,129

20

*

Rosneft Oil Co.

3,288

15

 

 

 

1,107

Singapore (0.5%)

 

 

 

Singapore Telecommunications Ltd.

50,000

84

 

Fraser & Neave Ltd.

34,000

64

 

Singapore Exchange Ltd.

17,000

61

 

Parkway Holdings Ltd.

51,000

55

 

United Overseas Bank Ltd.

6,000

54

 

22

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Haw Par Brothers

 

 

 

International Ltd.

23,000

54

 

Keppel Corp., Ltd.

17,000

53

 

Singapore Post Ltd.

102,000

49

 

MobileOne Ltd.

51,000

45

 

Venture Corp. Ltd.

12,000

44

 

Pacific Century Regional

 

 

 

Developments Ltd.

357,000

42

 

Oversea-Chinese

 

 

 

Banking Corp., Ltd.

12,000

41

 

Cerebos Pacific Ltd.

23,000

39

 

DBS Group Holdings Ltd.

4,000

30

 

Wilmar International Ltd.

17,000

29

 

Singapore Airlines Ltd.

2,000

15

 

Golden Agri-Resources Ltd.

102,000

14

 

City Developments Ltd.

2,000

9

 

Singapore Press Holdings Ltd.

4,000

9

 

Capitaland Ltd.

3,000

6

 

 

 

797

South Africa (0.8%)

 

 

 

MTN Group Ltd.

15,697

176

 

Sasol Ltd.

5,261

155

 

Standard Bank Group Ltd.

13,460

107

 

Naspers Ltd.

3,927

65

 

AngloGold Ltd.

2,854

54

 

FirstRand Ltd.

36,975

54

 

Impala Platinum Holdings Ltd.

4,710

49

 

Shoprite Holdings Ltd.

9,010

48

 

Gold Fields Ltd.

5,508

38

 

Murray & Roberts

 

 

 

Holdings Ltd.

5,287

36

 

Bidvest Group Ltd.

3,145

34

*

Harmony Gold

 

 

 

Mining Co., Ltd.

4,335

32

 

Anglo Platinum Ltd.

763

32

 

Sanlan Ltd.

18,683

31

 

Remgro Ltd.

4,142

30

 

RMB Holdings Ltd.

13,021

30

 

Aveng Ltd.

5,831

29

 

ABSA Group Ltd.

2,328

24

 

Steinhoff International Holdings Ltd.

15,674

23

*

Aspen Pharmacare Holdings Ltd.

5,912

21

 

Truworths International Ltd.

5,500

19

 

Telkom South Africa Ltd.

1,720

19

 

Tiger Brands Ltd.

1,250

18

 

Investec Ltd.

3,600

18

 

Imperial Holdings Ltd.

2,900

17

 

Kumba Iron Ore Ltd.

1,207

16

 

Barloworld Ltd.

2,680

16

 

ArcelorMittal South Africa, Ltd.

1,620

15

 

Massmart Holdings Ltd.

1,500

13

 

Nedbank Group Ltd.

1,280

12

 

African Bank Investments Ltd.

4,401

12

 

Growthpoint Properties Ltd.

9,001

12

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Pretoria Portland

 

 

 

Cement Co. Ltd.

3,700

11

 

African Rainbow

 

 

 

Minerals Ltd.

834

9

 

Sappi Ltd.

1,320

8

 

Pick’n Pay Stores Ltd.

800

3

 

Reunert Ltd.

500

3

 

Liberty Group Ltd.

400

3

 

Foschini Ltd.

600

2

 

Spar Group Ltd.

400

2

 

Network Healthcare

 

 

 

Holdings Ltd.

3,300

2

 

Woolworths Holdings Ltd.

1,900

2

 

Nampak Ltd.

1,600

2

 

Sun International Ltd.

260

2

 

AECI Ltd.

390

2

 

Mondi Ltd.

444

2

 

Grindrod Ltd.

1,000

1

 

Northam Platinum Ltd.

360

1

 

Exxaro Resources Ltd.

168

1

*

Mvelaphanda Resources Ltd.

367

1

*

Adcock Ingram

 

 

 

Holdings Limited

300

1

 

Highveld Steel &

 

 

 

Vanadium Corp. Ltd.

153

1

*

Metorex Ltd.

1,193

1

 

 

 

1,315

South Korea (1.4%)

 

 

1

Samsung Electronics Co.,

 

 

 

Ltd. GDR

1,598

330

 

POSCO ADR

3,665

246

 

Shinhan Financial

 

 

 

Group Co., Ltd. ADR

4,216

210

 

Samsung Electronics Co., Ltd.

372

157

 

SK Telecom Co., Ltd. ADR

7,323

126

*

KB Financial Group, Inc.

4,460

110

 

LG Electronics Inc.

740

55

 

Hyundai Motor Co., Ltd.

1,120

52

 

Hyundai Heavy

 

 

 

Industries Co., Inc.

380

50

 

Samsung Corp.

1,517

49

 

Shinsegae Co., Ltd.

134

47

*

NHN Corp.

396

42

 

Samsung Fire & Marine Insurance Co.

313

41

 

Korea Electric Power Corp.

2,050

41

 

SK Energy Co., Ltd.

679

39

 

S-Oil Corp.

750

38

 

Hyundai Engineering & Construction Co., Ltd.

920

38

 

LG Corp.

920

37

 

LG Chem Ltd.

600

36

 

KT Corp. ADR

2,847

36

 

KT & G Corp.

475

30

 

Hyundai Mobis

470

28

 

Hyundai Development Co.

1,000

27

 

23

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Samsung Heavy

 

 

 

Industries Co., Ltd.

1,640

25

 

Kangwon Land Inc.

2,390

24

 

Samsung Securities Co. Ltd.

480

24

 

Amorepacific Corp.

53

23

 

DC Chemical Co., Ltd.

108

18

 

Hana Financial Group Inc.

1,110

18

*

Kia Motors

1,940

16

*

Hynix Semiconductor Inc.

1,560

13

 

SK Holdings Co Ltd

190

13

 

Samsung Electro-

 

 

 

Mechanics Co.

300

9

*

Korea Telecom Freetel

380

8

 

Hyundai Merchant

 

 

 

Marine Co., Ltd.

270

7

 

LG Household &

 

 

 

Health Care Ltd.

50

7

 

Halla Climate Control Corp.

1,040

7

 

Yuhan Corp.

48

7

 

Woongjin Coway Co., Ltd.

330

7

 

Doosan Heavy Industries

 

 

 

and Construction Co., Ltd.

149

7

 

Cheil Industrial, Inc.

200

7

*

Samsung SDI Co. Ltd.

115

6

 

GS Engineering &

 

 

 

Construction Corp.

130

6

 

LS Cable Ltd.

140

6

 

Korea Exchange Bank

1,030

6

 

Woori Finance

 

 

 

Holdings Co., Ltd.

1,040

6

 

Samsung Engineering Co., Ltd.

139

6

 

Samsung Techwin Co., Ltd.

260

6

 

Daewoo Securities Co., Ltd.

560

5

 

Hyundai Steel Co.

180

5

 

Hyundai Mipo

 

 

 

Dockyard Co., Ltd.

60

5

 

Korea Investment

 

 

 

Holdings Co., Ltd.

240

5

 

Kumkang Korea Chemical Co., Ltd.

25

5

 

Lotte Shopping Co., Ltd.

35

5

*

CJ Cheiljedang Corp.

40

5

 

LG. Philips LCD Co., Ltd.

230

4

 

Hanwha Corp.

250

4

*

Doosan Corp.

47

3

 

Hyosung Corp.

140

3

 

Doosan Infracore Co., Ltd.

390

3

 

Dongbu Insurance Co., Ltd.

320

3

 

Daelim Industrial Co.

110

3

 

Daewoo International Corp.

280

3

 

Daewoo Shipbuilding & Marine Engineering Co., Ltd.

270

3

 

Sindo Ricoh Co., Inc.

48

2

*

Ssangyong Motor Co.

450

 

 

 

2,213

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Spain (1.8%)

 

 

 

Telefonica SA

38,249

708

 

Banco Santander

 

 

 

Central Hispano SA

51,442

556

 

Banco Bilbao Vizcaya

 

 

 

Argentaria SA

29,734

345

 

Iberdrola SA

38,422

278

 

Repsol YPF SA

9,614

183

^

Banco de Sabadell SA

19,288

132

^

Banco Popular Espanol SA

13,801

126

 

ACS, Actividades de

 

 

 

Contruccion y Servisios, SA

2,217

82

*

Union Fenosa, SA

3,753

80

 

Industria de Diseno Textil SA

1,662

56

 

Gas Natural SDG SA

1,794

55

 

Abertis Infraestructuras SA

2,704

46

 

Acerinox SA

3,313

42

 

Gamesa Corporacion

 

 

 

Tecnologica SA

2,386

39

 

Grifols SA

1,797

36

 

Bankinter SA

2,477

27

 

Criteria Caixacorp SA

5,668

18

 

Cintra Concesiones de

 

 

 

Infraestructuras de

 

 

 

Transport SA

1,971

17

 

Enagas SA

815

16

 

Zardoya Otis SA

704

13

 

Fomento de Construc

 

 

 

y Contra SA

321

13

 

Grupo Ferrovial SA

368

11

 

Corporacion Mapfre SA

3,487

11

*

Iberdrola Renovables

3,558

11

 

Red Electrica de Espana SA

245

11

 

Acciona SA

103

10

 

Banco de Valencia SA

827

8

 

Compania Espanola

 

 

 

de Petroleos SA

44

4

*

Banco Santander SA

264

3

 

Gestevision Telecinco SA

226

2

 

Sacyr Vallehermoso SA

176

2

 

Banco Espanol de Credito, SA

118

1

 

Promotora de Informaciones SA

285

1

 

Corporacion Financiera Alba SA

30

1

 

 

 

2,944

Sweden (0.8%)

 

 

 

Nordea Bank AB

21,800

175

 

Telefonaktiebolaget LM

 

 

 

Ericsson AB Class B

23,800

162

 

Tele2 AB B Shares

11,700

100

 

Hennes & Mauritz

 

 

 

AB B Shares

2,350

84

 

TeliaSonera AB

18,000

79

 

Svenska Handelsbanken AB A Shares

4,100

75

 

Skandinaviska Enskilda Banken AB A Shares

6,800

67

 

24

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Volvo AB B Shares

12,700

66

 

Sandvik AB

10,200

66

 

Husqvarna AB B Shares

8,500

59

 

Industrivarden AB C Shares

6,800

46

 

Scania AB B Shares

5,100

42

 

Volvo AB A Shares

6,800

35

 

Investor AB B Shares

2,043

31

 

SSAB Svenskt Stal

 

 

 

AB Series A

2,500

25

 

SKF AB B Shares

2,646

24

 

Atlas Copco AB A Shares

2,706

23

 

Swedish Match AB

1,500

21

 

Swedbank AB A Shares

2,088

17

 

Svenska Cellulosa

 

 

 

AB B Shares

1,900

14

 

Securitas AB B Shares

1,200

12

 

Electrolux AB Series B

1,000

9

 

Assa Abloy AB

800

9

 

Skanska AB B Shares

1,000

9

 

Alfa Laval AB

1,188

9

 

Boliden AB

3,400

8

 

Atlas Copco AB B Shares

788

6

 

Industrivarden AB A Shares

500

4

 

Holmen AB

100

3

 

 

 

1,280

Switzerland (3.4%)

 

 

 

Nestle SA (Registered)

31,496

1,225

 

Novartis AG (Registered)

18,135

920

 

Roche Holdings AG

5,630

861

*

UBS AG

23,822

404

 

Credit Suisse Group

 

 

 

(Registered)

9,314

348

 

Zurich Financial Services AG

1,252

254

 

ABB Ltd.

17,402

228

 

Syngenta AG

859

161

 

Ace Ltd.

2,700

155

 

Swiss Re (Registered)

3,324

139

*

Compagnie Financiere

 

 

 

Richemont SA

4,416

93

 

Holcim Ltd. (Registered)

1,570

89

 

Swatch Group AG (Bearer)

493

77

 

Julius Baer Holding, Ltd.

1,443

56

 

Alcon, Inc.

596

52

 

Swisscom AG

171

52

 

Adecco SA (Registered)

1,259

44

 

SGS Societe Generale de Surveillance Holding

 

 

 

SA (Registered)

44

43

 

Givaudan SA

63

43

*

Actelion Ltd.

808

43

 

Synthes, Inc.

316

41

 

Kuehne & Nagel International AG

526

32

 

Lonza AG (Registered)

363

30

 

Geberit AG

277

29

 

Swiss Life Holding

317

28

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Lindt & Spruengli AG Regular

1

24

 

Sonova Holding AG

528

22

 

Pargesa Holding SA

207

16

 

Swatch Group AG (Registered)

547

16

 

Lindt & Spruengli AG

7

15

 

Baloise Holdings AG

235

13

*

OC Oerlikon Corp AG

153

12

 

Nobel Biocare Holding AG

572

10

 

BKW FMB Energie AG

89

8

 

Petroplus Holdings AG

164

4

 

Clariant AG

476

3

 

Schindler Holding AG

 

 

 

(Registered)

60

3

 

Straumann Holding AG

16

3

 

Schindler Holding AG

 

 

 

(Bearer Participation

 

 

 

Certificates)

44

2

 

EFG International

60

1

 

 

 

5,599

Taiwan (1.2%)

 

 

 

Taiwan Semiconductor

 

 

 

Manufacturing Co.,

 

 

 

Ltd. ADR

46,183

381

 

Hon Hai Precision

 

 

 

Industry Co., Ltd.

57,550

139

 

Chunghwa Telecom Co., Ltd.

7,673

126

 

AU Optronics Corp. ADR

12,796

88

 

Formosa Plastic Corp.

49,000

83

 

High Tech Computer Corp.

6,300

75

 

Nan Ya Plastic Corp.

50,000

69

 

MediaTek Inc.

6,010

54

 

Asustek Computer Inc.

34,797

50

 

Formosa Chemicals &

 

 

 

Fibre Corp.

30,000

48

 

China Steel Corp.

63,450

46

 

Cathay Financial Holding Co.

35,400

38

 

Delta Electronics Inc.

16,060

36

 

Acer Inc.

28,030

36

 

Compal Electronics Inc.

45,035

32

 

Fubon Financial

 

 

 

Holding Co., Ltd.

49,000

30

 

Uni-President

 

 

 

Enterprises Co.

34,300

29

 

China Development

 

 

 

Financial Holding Corp.

140,525

28

 

Fuhwa Financial

 

 

 

Holdings Co., Ltd.

70,000

27

 

Chinatrust Financial Holding

90,689

26

 

Quanta Computer Inc.

24,060

25

 

Innolux Display Corp.

31,700

24

 

First Financial Holding Co., Ltd.

50,096

24

 

Foxconn Technology Co., Ltd.

9,200

23

 

Chi Mei Optoelectronics Corp.

60,300

22

 

25

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Siliconware Precision

 

 

 

Industries Co.

21,030

22

 

Mega Financial

 

 

 

Holding Co. Ltd.

74,000

20

 

SinoPac Holdings

96,000

20

 

Chang Hwa

 

 

 

Commercial Bank

52,000

20

 

Advanced Semiconductor

 

 

 

Engineering Inc.

44,115

19

 

Synnex Technology

 

 

 

International Corp.

14,200

18

 

Pou Chen Corp.

38,399

17

 

President Chain Store Corp.

7,000

16

*

Powerchip

 

 

 

Semiconductor Corp.

127,000

15

 

Taiwan Cellular Corp.

10,000

14

 

United Microelectronics Corp.

50,180

14

 

Formosa Petrochemical Corp.

6,000

14

 

Siliconware Precision

 

 

 

Industries Co. ADR

2,400

13

 

Hau Nan Financial

 

 

 

Holdings Co., Ltd.

24,180

13

 

Taiwan Cooperative Bank

24,900

12

 

Far Eastern Textile Ltd.

20,120

12

 

Far EasTone

 

 

 

Telecommunications

 

 

 

Co., Ltd.

10,000

11

 

Largan Precision Co., Ltd.

1,000

10

 

Lite-On Technology Corp.

16,015

10

 

United Microelectronics

 

 

 

Corp. ADR

3,135

8

 

Walsin Lihwa Corp.

29,000

7

 

Unimicron Technology Corp.

9,000

5

 

Catcher Technology Co., Ltd.

1,100

3

 

Nan Ya Printed Circuit

 

 

 

Board Corp.

1,000

2

 

Shin Kong Financial

 

 

 

Holdings Co.

8,399

2

 

Macronix International Co., Ltd.

7,069

2

 

HannStar Display Corp.

10,749

2

 

Taiwan Glass Industrial Corp.

4,000

2

 

Inventec Co., Ltd.

6,000

2

 

Advanced Semiconductor Engineering Inc. ADR

823

2

 

Wistron Corp.

2,098

2

*

Nanya Technology Corp.

9,000

2

*

Tatung Co., Ltd.

9,000

2

 

Taiwan Cement Corp.

3,030

2

 

Taishin Financial Holdings

9,000

1

 

Chunghwa Picture Tubes, Ltd.

13,000

1

 

Asia Cement Corp.

2,120

1

 

Taiwan Fertilizer Co., Ltd.

1,000

1

 

KGI Securities Co., Ltd.

5,000

1

 

Feng Hsin Iron & Steel Co., Ltd.

1,000

1

 

 

 

1,900

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

Thailand (0.1%)

 

 

*

Electricity Generating

 

 

 

Public Co. Ltd. (Local)

75,600

129

 

PTT Public Co. Ltd. (Foreign)

3,400

16

 

PTT Exploration and

 

 

 

Production Public

 

 

 

Co. Ltd. (Foreign)

4,800

12

 

Siam Commercial Bank

 

 

 

Public Co. Ltd. (Foreign)

5,100

8

*

True Corp. Public Co. Ltd.

 

 

 

(Foreign)

156,800

8

 

Advanced Info Service

 

 

 

Public Co., Ltd. (Foreign)

3,700

8

 

Siam Cement

 

 

 

Public Co. Ltd. (Foreign)

2,500

7

 

Kasikornbank

 

 

 

Public Co. Ltd. (Foreign)

4,400

6

 

Bangkok Bank

 

 

 

Public Co., Ltd. (Foreign)

2,600

5

 

PTT Aromatics & Refining

 

 

 

Public Co. Ltd. (Foreign)

16,700

5

 

 

 

204

Turkey (0.1%)

 

 

 

Eregli Demir ve Celik

 

 

 

Fabrikalari A.S.

15,504

48

*

Dogan Sirketler Grubu

 

 

 

Holding A.S.

52,249

41

 

Anadolu Efes Biracilik

 

 

 

ve Malt Sanayii A.S.

2,480

21

*

Turkiye Garanti Bankasi A.S.

11,089

19

 

Akbank T.A.S.

5,313

18

 

Turkiye Is Bankasi

 

 

 

A.S. C Shares

4,547

13

 

Turkcell Iletisim

 

 

 

Hizmetleri A.S.

1,817

9

 

Tupras-Turkiye Petrol

 

 

 

Rafinerileri A.S.

569

7

*

Yapi ve Kredi Bankasi A.S.

4,443

6

 

Turkiye Halk Bankasi A.S.

1,984

5

*

KOC Holding A.S.

1,687

3

 

Enka Insaat ve Sanayi A.S.

498

2

 

 

 

192

United Kingdom (8.5%)

 

 

 

BP PLC

150,983

1,231

 

HSBC Holdings PLC

96,192

1,139

 

Vodafone Group PLC

421,710

811

 

GlaxoSmithKline PLC

41,991

807

 

Royal Dutch Shell PLC

 

 

 

Class A

28,425

781

 

Royal Dutch Shell PLC Class B

21,770

590

 

British American Tobacco PLC

18,410

505

 

AstraZeneca Group PLC

11,694

496

 

BG Group PLC

27,182

400

 

Rio Tinto PLC

7,747

362

 

26

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Tesco PLC

63,768

349

 

Diageo PLC

19,544

298

 

BHP Billiton PLC

17,095

290

 

Anglo American PLC

10,625

267

 

National Grid Transco PLC

20,834

235

 

Reckitt Benckiser Group PLC

5,511

233

 

Unilever PLC

9,957

224

 

Imperial Tobacco Group PLC

8,262

221

 

Barclays PLC

65,455

188

 

Standard Chartered PLC

11,140

184

 

BAE Systems PLC

30,288

170

 

Centrica PLC

31,994

157

 

Scottish & Southern

 

 

 

Energy PLC

7,818

153

 

Royal Bank of Scotland

 

 

 

Group PLC

126,494

139

 

Lloyds TSB Group PLC

42,675

138

 

SABMiller PLC

8,654

137

 

Aviva PLC

22,951

137

 

Reed Elsevier PLC

14,399

126

 

BT Group PLC

62,697

118

 

Rolls-Royce Group PLC

19,737

104

 

Prudential PLC

20,233

102

 

Morrison Supermarkets PLC

23,341

99

 

Cadbury PLC

10,819

99

 

British Energy Group PLC

8,237

99

 

Xstrata PLC

5,741

98

 

Smith & Nephew PLC

8,993

82

 

HBOS PLC

46,005

75

*

Cairn Energy PLC

2,742

71

 

Tullow Oil PLC

8,313

71

 

Man Group PLC

11,981

69

 

Pearson PLC

6,446

64

 

J. Sainsbury PLC

13,787

63

*

United Utilities Group PLC

5,409

61

 

Kingfisher PLC

32,827

61

 

Marks & Spencer Group PLC

16,847

60

 

Royal & Sun Alliance

 

 

 

Insurance Group PLC

26,526

59

 

Compass Group PLC

12,644

59

 

Shire Ltd.

4,482

59

 

Land Securities Group PLC

3,193

57

 

Standard Life PLC

14,565

56

 

Legal & General Group PLC

47,651

55

 

British Sky Broadcasting

 

 

 

Group PLC

8,965

55

 

International Power PLC

14,705

53

 

WPP Group PLC

8,266

49

 

Home Retail Group

14,977

48

 

Experian Group Ltd.

8,589

47

 

Severn Trent PLC

2,101

46

 

British American Tobacco PLC (South Africa Line)

1,682

46

 

Segro PLC

10,132

46

 

Capita Group PLC

4,105

42

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Old Mutual PLC

49,232

40

 

Carnival PLC

1,735

38

 

InterContinental

 

 

 

Hotels Group PLC

4,437

38

 

Kazakhmys PLC

7,973

37

 

Smiths Group PLC

2,756

35

 

Cable and Wireless PLC

17,387

34

 

Rexam PLC

5,642

34

 

British Land Co., PLC

3,409

34

 

William Hill PLC

10,948

34

 

Associated British Foods PLC

2,799

31

 

Hammerson PLC

2,626

30

 

Liberty International PLC

2,650

30

 

Drax Group PLC

3,121

29

 

The Sage Group PLC

9,822

28

 

Amec PLC

3,250

27

 

Wolseley PLC

4,771

26

 

Johnson Matthey PLC

1,612

24

 

Lonmin PLC

1,292

24

 

Group 4 Securicor PLC

7,291

22

*

Amdocs Ltd.

903

20

 

Willis Group Holdings Ltd.

731

19

 

3i Group PLC

1,982

17

 

Next PLC

928

16

 

Burberry Group PLC

3,490

16

 

Cobham PLC

5,090

15

 

Tate & Lyle PLC

2,533

15

 

Bunzl PLC

1,472

15

 

ITV PLC

30,442

15

 

The Alliance Trust PLC

3,607

14

 

Eurasian Natural

 

 

 

Resources Corp.

2,841

14

 

Thomson Reuters PLC

814

14

 

Foreign and Colonial

 

 

 

Investment Trust PLC

3,837

14

 

Whitbread PLC

943

14

 

ICAP PLC

2,694

13

 

Friends Provident PLC

10,468

12

 

Tomkins PLC

5,296

10

 

Schroders PLC

687

9

 

Rentokil Initial PLC

8,354

6

 

GKN PLC

3,047

6

 

Antofagasta PLC

939

6

 

LogicaCMG PLC

3,664

4

 

Vedanta Resources PLC

277

4

*

Invensys PLC

1,500

4

 

Scottish Mortgage Investment Trust PLC

694

4

 

Provident Financial PLC

252

3

 

Mondi PLC

762

3

 

Daily Mail and General Trust PLC

551

3

 

Hays PLC

1,926

2

 

Thomas Cook Group PLC

738

2

 

United Business Media Ltd.

296

2

 

British Airways PLC

700

2

 

27

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Aegis Group PLC

1,466

2

 

Enterprise Inns PLC

957

2

 

Ladbrokes PLC

579

1

 

 

 

13,854

United States (45.1%)

 

 

 

Consumer Discretionary (3.9%)

 

 

 

McDonald’s Corp.

9,100

527

 

The Walt Disney Co.

14,900

386

 

Home Depot, Inc.

12,700

300

 

Time Warner, Inc.

27,700

279

 

Comcast Corp. Class A

15,900

251

 

Lowe’s Cos., Inc.

11,200

243

 

Target Corp.

5,800

233

*

DIRECTV Group, Inc.

8,500

186

 

News Corp., Class A

13,300

141

 

NIKE, Inc. Class B

2,400

138

*

Amazon.com, Inc.

2,340

134

 

Staples, Inc.

6,800

132

 

Comcast Corp.

 

 

 

Special Class A

8,500

131

 

VF Corp.

2,253

124

*

Kohl’s Corp.

3,400

119

 

Yum! Brands, Inc.

3,600

104

*

Viacom Inc. Class B

5,100

103

 

Best Buy Co., Inc.

3,600

96

 

Carnival Corp.

3,700

94

 

TJX Cos., Inc.

3,400

91

 

General Motors Corp.

15,700

91

 

News Corp., Class B

8,500

90

*

Starbucks Corp.

6,800

89

*

Apollo Group, Inc. Class A

1,235

86

 

Johnson Controls, Inc.

4,360

77

 

Omnicom Group Inc.

2,600

77

 

Mattel, Inc.

5,100

77

*

Liberty Media Corp.–Interactive Series A

15,500

76

*

Coach, Inc.

3,400

70

 

The McGraw-Hill Cos., Inc.

2,500

67

 

PetSmart, Inc.

3,400

67

 

CBS Corp.

6,800

66

 

Fortune Brands, Inc.

1,700

65

*

Liberty Media Corp.

3,943

63

 

Nordstrom, Inc.

3,400

61

 

Leggett & Platt, Inc.

3,400

59

 

Marriott International, Inc. Class A

2,800

58

 

The Stanley Works

1,700

56

 

Sherwin-Williams Co.

900

51

*

AutoZone Inc.

400

51

 

Foot Locker, Inc.

3,400

50

 

Eastman Kodak Co.

5,100

47

 

The Gap, Inc.

3,600

47

*

GameStop Corp. Class A

1,700

47

*

Bed Bath & Beyond, Inc.

1,702

44

 

H & R Block, Inc.

2,200

43

 

Macy’s Inc.

3,400

42

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

J.C. Penney Co., Inc.

 

 

 

(Holding Co.)

1,700

41

*

Garmin Ltd.

1,700

38

 

Genuine Parts Co.

900

35

*

Ford Motor Co.

15,150

33

 

Hillenbrand Inc.

1,700

32

*

Sears Holdings Corp.

551

32

 

Brinker International, Inc.

3,400

32

 

Harley-Davidson, Inc.

1,200

29

 

Starwood Hotels & Resorts

 

 

 

Worldwide, Inc.

1,300

29

 

Williams-Sonoma, Inc.

3,400

28

*

Dollar Tree, Inc.

720

27

 

D. R. Horton, Inc.

3,400

25

 

Newell Rubbermaid, Inc.

1,800

25

 

International Game Technology

1,700

24

 

Ross Stores, Inc.

700

23

 

Tiffany & Co.

800

22

 

Family Dollar Stores, Inc.

800

21

 

Hasbro, Inc.

700

20

 

Jones Apparel Group, Inc.

1,700

19

 

Whirlpool Corp.

400

19

 

Cablevision Systems NY

 

 

 

Group Class A

1,000

18

 

Black & Decker Corp.

300

15

 

Limited Brands, Inc.

1,200

14

*

DISH Network Corp.

800

13

*

Discovery Communications Inc. Class C

878

12

*

Time Warner Cable, Inc.

554

11

 

Scripps Networks Interactive

352

10

*

Mohawk Industries, Inc.

200

10

*

Toll Brothers, Inc.

400

9

*

Urban Outfitters, Inc.

406

9

 

Abercrombie & Fitch Co.

300

9

*

Liberty Global, Inc. Class A

500

8

*

Liberty Global, Inc. Series C

479

8

 

Gannett Co., Inc.

700

8

*

Wendy’s/Arby’s Group, Inc.

2,125

8

 

RadioShack Corp.

600

8

*

Expedia, Inc.

778

7

 

American Eagle Outfitters, Inc.

642

7

 

Darden Restaurants Inc.

300

7

 

Wynn Resorts Ltd.

100

6

 

Gentex Corp.

585

6

 

Pulte Homes, Inc.

500

6

 

Autoliv, Inc.

239

5

*

MGM Mirage, Inc.

300

5

*

Interpublic Group of Cos., Inc.

900

5

*

Lamar Advertising Co. Class A

300

4

*

Las Vegas Sands Corp.

289

4

 

Royal Caribbean Cruises, Ltd.

300

4

*

Sirius XM Radio Inc.

11,920

4

*

Discovery Communications Inc. Class A

285

4

 

Wyndham Worldwide Corp.

371

3

 

28

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

WABCO Holdings Inc.

139

3

 

Virgin Media Inc.

300

2

*

Ticketmaster Entertainment Inc. 80

 

1

*

Interval Leisure Group, Inc.

80

1

*

HSN,Inc.

80

 

 

 

 

 

Consumer Staples (5.9%)

 

 

 

The Procter & Gamble Co.

24,015

1,550

 

Wal-Mart Stores, Inc.

23,800

1,328

 

The Coca-Cola Co.

18,600

820

 

Philip Morris International Inc.

16,516

718

 

PepsiCo, Inc.

12,500

713

 

CVS Caremark Corp.

11,500

352

 

Anheuser-Busch Cos., Inc.

5,500

341

 

Kraft Foods Inc.

11,325

330

 

Colgate-Palmolive Co.

5,100

320

 

Altria Group, Inc.

16,400

315

 

Kimberly-Clark Corp.

3,600

221

 

Costco Wholesale Corp.

3,600

205

 

Walgreen Co.

7,500

191

 

The Kroger Co.

6,800

187

 

General Mills, Inc.

2,700

183

 

Avon Products, Inc.

5,100

127

 

Sysco Corp.

4,800

126

 

SuperValu Inc.

8,470

121

 

Kellogg Co.

2,300

116

 

Sara Lee Corp.

10,200

114

 

Archer-Daniels-Midland Co.

5,500

114

 

Molson Coors Brewing Co.

 

 

 

Class B

2,978

111

 

Safeway, Inc.

5,100

108

 

H.J. Heinz Co.

2,100

92

 

Reynolds American Inc.

1,771

87

*

Dean Foods Co.

3,770

82

 

UST, Inc.

1,185

80

 

Lorillard, Inc.

1,158

76

 

Campbell Soup Co.

1,900

72

 

The Clorox Co.

1,100

67

 

Bunge Ltd.

1,700

65

 

ConAgra Foods, Inc.

3,600

63

 

The Hershey Co.

1,300

48

 

The Estee Lauder Cos. Inc. Class A

900

32

*

Dr. Pepper Snapple Group, Inc.

1,306

30

 

McCormick & Co., Inc.

600

20

 

Hormel Foods Corp.

550

16

 

Coca-Cola Enterprises, Inc.

1,315

13

 

The Pepsi Bottling Group, Inc.

494

11

*

Energizer Holdings, Inc.

200

10

 

Tyson Foods, Inc.

1,100

10

 

Alberto-Culver Co.

362

9

 

Brown-Forman Corp. Class B

121

6

*

Constellation Brands, Inc. Class A

400

5

 

Whole Foods Market, Inc.

300

3

*

Smithfield Foods, Inc.

279

3

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Energy (5.4%)

 

 

 

ExxonMobil Corp.

41,593

3,083

 

Chevron Corp.

16,600

1,238

 

ConocoPhillips Co.

12,178

633

 

Schlumberger Ltd.

9,250

478

 

Occidental Petroleum Corp.

6,600

367

 

Devon Energy Corp.

3,600

291

 

Apache Corp.

2,700

222

*

Transocean, Inc.

2,570

212

 

Marathon Oil Corp.

5,500

160

 

EOG Resources, Inc.

1,900

154

 

XTO Energy, Inc.

4,100

147

 

Halliburton Co.

7,300

144

 

Anadarko Petroleum Corp.

3,700

131

 

Hess Corp.

1,815

109

 

Williams Cos., Inc.

5,100

107

*

National Oilwell Varco Inc.

3,500

105

 

Chesapeake Energy Corp.

4,350

96

*

Weatherford International Ltd.

5,600

95

 

Spectra Energy Corp.

4,097

79

*

Ultra Petroleum Corp.

1,700

79

 

Valero Energy Corp.

3,700

76

 

Baker Hughes, Inc.

2,170

76

 

Noble Energy Inc.

1,400

73

 

Peabody Energy Corp.

2,000

69

 

Noble Corp.

2,000

64

 

Murphy Oil Corp.

1,269

64

 

Smith International, Inc.

1,700

59

 

El Paso Corp.

5,600

54

 

CONSOL Energy, Inc.

1,700

53

 

Sunoco, Inc.

1,700

52

 

Teekay Shipping Corp.

1,700

36

 

Diamond Offshore Drilling, Inc.

371

33

 

ENSCO International, Inc.

800

30

*

Cameron International Corp.

1,000

24

*

Nabors Industries, Inc.

1,500

22

 

BJ Services Co.

1,000

13

*

Pride International, Inc.

613

12

 

Pioneer Natural Resources Co.

400

11

*

Newfield Exploration Co.

400

9

 

Rowan Cos., Inc.

400

7

 

Patterson-UTI Energy, Inc.

500

7

*

Plains Exploration &

 

 

 

Production Co.

209

6

*

Patriot Coal Corp.

144

2

 

 

 

 

 

Financials (7.3%)

 

 

 

JPMorgan Chase & Co.

29,500

1,217

 

Bank of America Corp.

40,175

971

 

Wells Fargo & Co.

26,420

900

*

Berkshire Hathaway Inc. Class A

6

693

 

Citigroup Inc.

43,600

595

 

U.S. Bancorp

13,400

399

*

Berkshire Hathaway Inc. Class B

84

323

 

29

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

The Goldman Sachs

 

 

 

Group, Inc.

3,420

316

 

Bank of New York Mellon Corp.

8,700

284

 

American Express Co.

9,200

253

 

Merrill Lynch & Co., Inc.

12,233

227

 

The Travelers Cos., Inc.

5,300

226

 

MetLife, Inc.

6,158

205

 

PNC Financial Services Group

2,740

183

 

Charles Schwab Corp.

9,200

176

 

Loews Corp.

5,100

169

 

AFLAC Inc.

3,700

164

 

Morgan Stanley

8,900

155

 

State Street Corp.

3,500

152

 

The Chubb Corp.

2,900

150

 

CME Group, Inc.

509

144

 

BB&T Corp.

3,900

140

 

The Allstate Corp.

5,100

135

 

Capital One Financial Corp.

3,400

133

 

Simon Property Group, Inc.

 

 

 

REIT

1,800

121

 

Marsh & McLennan Cos., Inc.

4,100

120

 

Prudential Financial, Inc.

3,600

108

 

SunTrust Banks, Inc.

2,610

105

 

Northern Trust Corp.

1,800

101

 

Brown & Brown, Inc.

4,836

99

 

Wachovia Corp.

14,440

93

 

Erie Indemnity Co. Class A

2,265

84

 

Franklin Resources Corp.

1,200

82

 

Aon Corp.

1,900

80

 

Hudson City Bancorp, Inc.

4,170

78

 

Progressive Corp. of Ohio

5,400

77

 

T. Rowe Price Group Inc.

1,900

75

 

Ameriprise Financial, Inc.

3,400

73

 

Public Storage, Inc. REIT

900

73

 

Vornado Realty Trust REIT

1,000

71

 

Regions Financial Corp.

5,700

63

 

Equity Residential REIT

1,800

63

 

Discover Financial Services

5,100

62

 

Mercury General Corp.

1,185

61

 

Liberty Property Trust REIT

2,490

59

 

M & T Bank Corp.

700

57

 

Boston Properties, Inc. REIT

800

57

 

NYSE Euronext

1,861

56

 

Moody’s Corp.

2,000

51

 

HCP, Inc. REIT

1,700

51

 

Invesco, Ltd.

3,400

51

 

Weingarten Realty Investors

 

 

 

REIT

2,461

50

 

KeyCorp

4,000

49

 

Duke Realty Corp. REIT

3,400

48

 

Old Republic International Corp.

5,100

47

*

Forestar Real Estate Group, Inc.

5,100

45

 

Plum Creek Timber Co. Inc. REIT

1,100

41

 

People’s United Financial Inc.

2,304

40

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

National City Corp.

14,850

40

 

Kimco Realty Corp. REIT

1,700

38

 

Marshall & Ilsley Corp.

2,100

38

 

Legg Mason Inc.

1,700

38

*

SLM Corp.

3,400

36

 

Host Hotels & Resorts Inc.

 

 

 

REIT

3,500

36

 

American International

 

 

 

Group, Inc.

18,900

36

 

New York Community

 

 

 

Bancorp, Inc.

2,300

36

 

Avalonbay Communities, Inc.

 

 

 

REIT

500

35

 

The Hartford Financial

 

 

 

Services Group Inc.

3,400

35

 

Hospitality Properties Trust

 

 

 

REIT

3,400

34

 

Fifth Third Bancorp

3,100

34

 

Comerica, Inc.

1,200

33

 

The Principal

 

 

 

Financial Group, Inc.

1,743

33

 

Axis Capital Holdings Ltd.

1,161

33

 

Everest Re Group, Ltd.

400

30

 

Lincoln National Corp.

1,700

29

 

XL Capital Ltd. Class A

2,970

29

 

Cincinnati Financial Corp.

1,100

29

 

Unum Group

1,800

28

 

Huntington Bancshares Inc.

2,900

27

 

Commerce Bancshares, Inc.

578

27

 

PartnerRe Ltd.

400

27

*

IntercontinentalExchange Inc.

303

26

 

Leucadia National Corp.

937

25

 

Assurant, Inc.

945

24

 

ProLogis REIT

1,700

24

*

Guaranty Financial Group, Inc.

10,200

21

 

Protective Life Corp.

2,416

20

*

Markel Corp.

53

19

 

Synovus Financial Corp.

1,800

19

 

W.R. Berkley Corp.

600

16

 

Zions Bancorp

400

15

*

TD Ameritrade Holding Corp.

1,120

15

 

Torchmark Corp.

300

13

 

Associated Banc-Corp.

500

11

 

White Mountains Insurance Group Inc.

32

11

 

MBIA, Inc.

1,000

10

 

First Horizon National Corp.

800

10

 

Arthur J. Gallagher & Co.

373

9

 

TCF Financial Corp.

500

9

 

The Macerich Co. REIT

300

9

 

Fulton Financial Corp.

802

8

 

Federated Investors, Inc.

317

8

 

Popular, Inc.

1,005

8

 

AMB Property Corp. REIT

309

7

 

Janus Capital Group Inc.

600

7

 

30

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Regency Centers Corp. REIT

171

7

*

The St. Joe Co.

200

6

 

Valley National Bancorp

300

6

 

City National Corp.

100

5

 

Developers Diversified

 

 

 

Realty Corp. REIT

400

5

 

SEI Investments Co.

293

5

 

RenaissanceRe Holdings Ltd.

100

5

 

Genworth Financial Inc.

900

4

 

CIT Group Inc.

1,000

4

 

First American Corp.

200

4

 

Sovereign Bancorp, Inc.

1,300

4

 

Forest City Enterprise Class A

312

4

 

Apartment Investment &

 

 

 

Management Co.

 

 

 

Class A REIT

200

3

 

Allied Capital Corp.

300

2

 

General Growth Properties Inc. REIT

500

2

*

Reinsurance Group of America, Inc. Group-B

53

2

 

 

 

 

 

Health Care (6.1%)

 

 

 

Johnson & Johnson

22,595

1,386

 

Pfizer Inc.

54,000

956

 

Abbott Laboratories

12,400

684

 

Merck & Co., Inc.

17,230

533

*

Amgen Inc.

8,500

509

 

Medtronic, Inc.

9,100

367

*

Gilead Sciences, Inc.

7,300

335

 

Wyeth

10,400

335

 

Baxter International, Inc.

5,300

321

 

Bristol-Myers Squibb Co.

14,800

304

 

Eli Lilly & Co.

8,700

294

*

Genentech, Inc.

3,319

275

 

UnitedHealth Group Inc.

9,800

233

*

Celgene Corp.

3,600

231

 

Covidien Ltd.

5,100

226

*

Medco Health Solutions, Inc.

5,100

194

 

Schering-Plough Corp.

12,979

188

*

WellPoint Inc.

3,900

152

*

Thermo Fisher Scientific, Inc.

3,600

146

 

Becton, Dickinson & Co.

2,000

139

*

Genzyme Corp.

1,900

138

 

Stryker Corp.

2,500

134

 

Cardinal Health, Inc.

3,400

130

*

Express Scripts Inc.

2,002

121

*

Boston Scientific Corp.

12,700

115

 

Allergan, Inc.

2,580

102

 

Aetna Inc.

3,600

90

*

St. Jude Medical, Inc.

2,300

87

*

Biogen Idec Inc.

2,020

86

*

Zimmer Holdings, Inc.

1,800

84

*

Forest Laboratories, Inc.

3,400

79

 

C.R. Bard, Inc.

800

71

 

McKesson Corp.

1,800

66

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Lincare Holdings, Inc.

2,428

64

 

CIGNA Corp.

3,400

55

*

Laboratory Corp. of

 

 

 

America Holdings

900

55

*

Humana Inc.

1,700

50

*

DaVita, Inc.

800

45

*

Intuitive Surgical, Inc.

258

45

*

Barr Pharmaceuticals Inc.

654

42

 

AmerisourceBergen Corp.

1,300

41

 

Hill-Rom Holdings, Inc.

1,700

39

 

Quest Diagnostics, Inc.

800

37

*

Hospira, Inc.

1,300

36

*

Cephalon, Inc.

451

32

*

Varian Medical Systems, Inc.

700

32

*

Henry Schein, Inc.

597

28

 

Applied Biosystems Inc.

900

28

*

ImClone Systems, Inc.

338

23

 

DENTSPLY International Inc.

600

18

*

Waters Corp.

400

17

 

Omnicare, Inc.

600

17

*

Millipore Corp.

296

15

*

Patterson Cos.

400

10

 

IMS Health, Inc.

700

10

 

Beckman Coulter, Inc.

200

10

 

Universal Health Services

 

 

 

Class B

167

7

*

Invitrogen Corp.

200

6

*

Watson Pharmaceuticals, Inc.

220

6

*

Coventry Health Care Inc.

400

5

*

Mylan Inc.

570

5

*

King Pharmaceuticals, Inc.

523

5

*

Community Health Systems, Inc.

199

4

 

Perrigo Co.

91

3

*

Health Net Inc.

200

3

 

 

 

 

 

Industrials (4.8%)

 

 

 

General Electric Co.

84,400

1,647

 

United Technologies Corp.

7,500

412

 

3M Co.

5,500

354

 

The Boeing Co.

5,700

298

 

Lockheed Martin Corp.

3,500

298

 

United Parcel Service, Inc.

5,480

289

 

Union Pacific Corp.

3,800

254

 

Burlington Northern Santa Fe Corp.

2,640

235

 

General Dynamics Corp.

3,500

211

 

Emerson Electric Co.

5,700

187

 

Raytheon Co.

3,600

184

 

Norfolk Southern Corp.

2,980

179

 

Caterpillar, Inc.

4,590

175

 

Honeywell International Inc.

5,600

170

 

CSX Corp.

3,600

165

 

Northrop Grumman Corp.

3,400

159

 

Waste Management, Inc.

5,100

159

 

FedEx Corp.

2,230

146

 

31

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

Deere & Co.

3,600

139

 

Illinois Tool Works, Inc.

3,800

127

 

Precision Castparts Corp.

1,700

110

 

PACCAR, Inc.

3,400

99

*

Alliant Techsystems, Inc.

1,202

99

 

Danaher Corp.

1,600

95

 

Tyco International, Ltd.

3,600

91

 

C.H. Robinson Worldwide Inc.

1,700

88

 

L-3 Communications

 

 

 

Holdings, Inc.

1,000

81

 

Cummins Inc.

2,900

75

 

Southwest Airlines Co.

5,900

69

 

ITT Industries, Inc.

1,500

67

 

Robert Half International, Inc.

3,400

64

 

Ingersoll-Rand Co.

3,400

63

*

Jacobs Engineering Group Inc.

1,700

62

 

Eaton Corp.

1,300

58

 

R.R. Donnelley & Sons Co.

3,400

56

 

Fluor Corp.

1,400

56

 

Expeditors International

 

 

 

of Washington, Inc.

1,702

56

*

Monster Worldwide Inc.

3,400

48

*

Foster Wheeler Ltd.

1,700

47

 

Parker Hannifin Corp.

1,100

43

 

Rockwell Collins, Inc.

1,100

41

 

Goodrich Corp.

999

36

 

Textron, Inc.

1,900

34

 

Fastenal Co.

800

32

 

Dover Corp.

1,000

32

 

Avery Dennison Corp.

900

31

 

W.W. Grainger, Inc.

400

31

*

First Solar, Inc.

214

31

*

McDermott International, Inc.

1,700

29

 

Cooper Industries, Inc. Class A

900

28

 

Pitney Bowes, Inc.

1,100

27

*

Iron Mountain, Inc.

1,041

25

 

Republic Services, Inc. Class A

1,000

24

 

Equifax, Inc.

900

23

 

Pall Corp.

800

21

 

Rockwell Automation, Inc.

600

17

 

The Dun & Bradstreet Corp.

200

15

 

Masco Corp.

1,300

13

 

Manpower Inc.

300

9

 

Ryder System, Inc.

210

8

 

SPX Corp.

200

8

 

Pentair, Inc.

200

6

 

J.B. Hunt Transport Services, Inc.

189

5

*

Terex Corp.

300

5

 

Cintas Corp.

200

5

 

 

 

 

 

Information Technology (7.0%)

 

 

 

Microsoft Corp.

73,168

1,634

 

International Business Machines Corp.

10,900

1,013

*

Cisco Systems, Inc.

47,811

850

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Apple Inc.

7,051

759

 

Hewlett-Packard Co.

19,750

756

*

Oracle Corp.

41,208

754

 

Intel Corp.

45,059

721

*

Google Inc.

1,931

694

 

QUALCOMM Inc.

13,102

501

 

Applied Materials, Inc.

15,300

198

 

Texas Instruments, Inc.

9,600

188

*

Dell Inc.

15,053

183

*

EMC Corp.

15,300

180

 

Automatic Data Processing, Inc.

5,100

178

 

Accenture Ltd.

4,800

159

*

Juniper Networks, Inc.

7,935

149

 

Corning, Inc.

11,500

125

 

MasterCard, Inc. Class A

788

116

*

eBay Inc.

7,300

111

 

Western Union Co.

6,800

104

*

Adobe Systems, Inc.

3,800

101

*

Yahoo! Inc.

7,800

100

 

Tyco Electronics Ltd.

5,100

99

 

Paychex, Inc.

3,400

97

 

Motorola, Inc.

16,900

91

*

Electronic Arts Inc.

3,400

77

*

Symantec Corp.

5,641

71

*

Cognizant Technology Solutions Corp.

3,400

65

*

Agilent Technologies, Inc.

2,900

64

*

Intuit, Inc.

2,553

64

*

Broadcom Corp.

3,400

58

*

HLTH Corp.

6,800

56

 

Xerox Corp.

5,800

47

*

NetApp, Inc.

3,400

46

 

CA, Inc.

2,553

45

*

NVIDIA Corp.

5,100

45

*

Citrix Systems, Inc.

1,700

44

*

Micron Technology, Inc.

8,500

40

*

Autodesk, Inc.

1,700

36

*

VeriSign, Inc.

1,700

36

*

Flextronics International Ltd.

8,500

36

 

Altera Corp.

2,000

35

*

Teradyne, Inc.

6,800

35

 

Analog Devices, Inc.

1,600

34

 

Xilinx, Inc.

1,802

33

 

Harris Corp.

898

32

*

Sun Microsystems, Inc.

6,800

31

*

Computer Sciences Corp.

1,000

30

*

Fiserv, Inc.

851

28

 

Linear Technology Corp.

1,200

27

*

McAfee Inc.

812

26

*

Convergys Corp.

3,400

26

*

BMC Software, Inc.

1,000

26

 

Amphenol Corp.

900

26

 

Microchip Technology, Inc.

1,000

25

*

Akamai Technologies, Inc.

1,700

24

 

National Semiconductor Corp.

1,600

21

 

32

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Marvell Technology Group Ltd.

3,004

21

*

Affiliated Computer

 

 

 

Services, Inc. Class A

500

20

*

Unisys Corp.

10,200

16

*

SanDisk Corp.

1,700

15

 

KLA-Tencor Corp.

600

14

 

Seagate Technology

1,800

12

*

MEMC Electronic

 

 

 

Materials, Inc.

646

12

*

Avnet, Inc.

553

9

 

Diebold, Inc.

301

9

*

LAM Research Corp.

400

9

*

NCR Corp.

371

7

*

IAC/InterActiveCorp

400

7

 

Total System Services, Inc.

478

7

 

Fidelity National Information

 

 

 

Services, Inc.

400

6

 

Broadridge Financial

 

 

 

Solutions LLC

494

6

*

Teradata Corp.

384

6

*

Alliance Data Systems Corp.

114

6

*

Synopsys, Inc.

300

5

*

Lexmark International, Inc.

200

5

*

LSI Corp.

1,200

5

*

Advanced Micro Devices, Inc.

1,300

5

*

Arrow Electronics, Inc.

238

4

*

DST Systems, Inc.

100

4

*

Compuware Corp.

600

4

 

Lender Processing

 

 

 

Services, Inc.

150

3

 

Jabil Circuit, Inc.

400

3

 

 

 

 

 

Materials (1.3%)

 

 

 

Monsanto Co.

4,200

374

 

E.I. du Pont de

 

 

 

Nemours & Co.

7,300

234

 

Dow Chemical Co.

7,400

197

 

Praxair, Inc.

2,340

152

 

Air Products & Chemicals, Inc.

1,800

105

 

Newmont Mining Corp. (Holding Co.)

3,600

95

 

Nucor Corp.

2,340

95

 

Bemis Co., Inc.

3,400

84

 

Rohm & Haas Co.

1,200

84

 

Freeport-McMoRan Copper & Gold, Inc. Class B

2,660

77

 

The Mosaic Co.

1,700

67

 

Alcoa Inc.

5,800

67

 

Weyerhaeuser Co.

1,700

65

 

Ecolab, Inc.

1,600

60

 

International Paper Co.

3,400

58

 

PPG Industries, Inc.

1,100

54

 

Vulcan Materials Co.

900

49

 

Allegheny Technologies Inc.

1,700

45

 

Sigma-Aldrich Corp.

700

31

 

Ball Corp.

800

27

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

*

Pactiv Corp.

1,000

24

 

United States Steel Corp.

600

22

 

Sealed Air Corp.

1,100

19

 

Southern Copper Corp.

 

 

 

(U.S. Shares)

909

13

 

Eastman Chemical Co.

240

10

 

International Flavors &

 

 

 

Fragrances, Inc.

200

6

 

MeadWestvaco Corp.

400

6

 

 

 

 

 

Telecommunication Services (1.4%)

 

 

 

AT&T Inc.

47,580

1,274

 

Verizon Communications Inc.

22,800

676

*

American Tower Corp.

 

 

 

Class A

3,400

110

 

Sprint Nextel Corp.

19,500

61

*

NII Holdings Inc.

1,700

44

 

Embarq Corp.

1,142

34

*

Crown Castle

 

 

 

International Corp.

1,400

30

*

MetroPCS

 

 

 

Communications Inc.

2,000

28

 

Qwest Communications

 

 

 

International Inc.

6,400

18

*

Level 3 Communications, Inc.

13,600

14

 

CenturyTel, Inc.

549

14

 

Telephone & Data

 

 

 

Systems, Inc.–Special

 

 

 

Common Shares

300

8

 

Frontier Communications Corp.

656

5

 

 

 

 

 

Utilities (2.0%)

 

 

 

Exelon Corp.

5,400

293

 

Duke Energy Corp.

13,780

226

 

Southern Co.

5,930

204

 

Dominion Resources, Inc.

4,600

167

 

NSTAR

4,729

156

 

FPL Group, Inc.

3,300

156

 

FirstEnergy Corp.

2,400

125

 

NiSource, Inc.

9,649

125

 

Entergy Corp.

1,500

117

 

Public Service Enterprise Group, Inc.

4,100

115

 

CenterPoint Energy Inc.

9,859

114

 

Puget Energy, Inc.

4,802

112

 

American Electric Power Co., Inc.

3,200

104

 

PG&E Corp.

2,400

88

 

Northeast Utilities

3,783

85

 

Sempra Energy

2,000

85

 

Progress Energy, Inc.

2,100

83

 

PPL Corp.

2,500

82

 

Pinnacle West Capital Corp.

2,513

80

*

NRG Energy, Inc.

3,400

79

 

Edison International

2,200

78

 

Consolidated Edison Inc.

1,800

78

 

33

Total World Stock Index Fund

 

 

 

 

Market

 

 

 

Value

 

 

Shares

($000)

 

TECO Energy, Inc.

6,160

71

 

Xcel Energy, Inc.

3,400

59

 

Ameren Corp.

1,700

55

 

Wisconsin Energy Corp.

800

35

 

Allegheny Energy, Inc.

1,120

34

 

Pepco Holdings, Inc.

1,600

33

 

DTE Energy Co.

900

32

 

Questar Corp.

900

31

 

SCANA Corp.

900

30

*

AES Corp.

3,500

28

*

Reliant Energy, Inc.

5,100

27

 

Alliant Energy Corp.

884

26

 

Constellation Energy

 

 

 

Group, Inc.

1,000

24

 

MDU Resources Group, Inc.

978

18

 

Equitable Resources, Inc.

500

17

*

Mirant Corp.

376

7

 

 

 

73,344

Total Common Stocks

 

 

(Cost $194,352)

 

159,725

Temporary Cash Investment (2.0%)

 

 

Money Market Fund (2.0%)

 

 

2,3

Vanguard Market

 

 

 

Liquidity Fund, 2.217%

 

 

 

(Cost $3,140)

3,139,722

3,140

Total Investments (100.3%)

 

 

(Cost $197,492)

 

162,865

Other Assets and Liabilites (–0.3%)

 

 

Other Assets

 

838

Liabilities3

 

(1,268)

 

 

 

(430)

Net Assets (100%)

 

162,435

 

At October 31, 2008, net assets consisted of:

 

Amount

 

($000)

Paid-in Capital

196,943

Undistributed Net Investment Income

684

Accumulated Net Realized Losses

(572)

Unrealized Appreciation (Depreciation)

 

Investment Securities

(34,627)

Foreign Currencies

7

Net Assets

162,435

 

 

Investor Shares—Net Assets

 

Applicable to 2,996,930 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

41,073

Net Asset Value Per Share—

 

Investor Shares

$13.71

 

 

Institutional Shares—Net Assets

 

Applicable to 104,514 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

7,172

Net Asset Value Per Share—

 

Institutional Shares

$68.63

 

 

ETF Shares—Net Assets

 

Applicable to 3,400,000 outstanding

 

$.001 par value shares of beneficial

 

interest (unlimited authorization)

114,190

Net Asset Value Per Share—

 

ETF Shares

$33.59

 

 

See Note A in Notes to Financial Statements.

*

Non-income-producing security.

^

Part of security position is on loan to broker-dealers. The total value of securities on loan is $520,000.

1 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2008, the value of this security represented 0.2% of net assets.

2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

3 Includes $554,000 of collateral received for securities on loan.

ADR—American Depositary Receipt.

GDR—Global Depositary Receipt.

REIT—Real Estate Investment Trust.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

34

Total World Stock Index Fund

 

Statement of Operations

 

 

June 24, 20081 to

 

October 31, 2008

 

($000)

Investment Income

 

Income

 

Dividends2

722

Interest3

24

Total Income

746

Expenses

 

The Vanguard Group—Note B

 

Investment Advisory Services

2

Management and Administrative—Investor Shares

11

Management and Administrative—Institutional Shares

1

Management and Administrative—ETF Shares

1

Custodian Fees

44

Auditing Fees

30

Shareholders’ Reports—Investor Shares

2

Shareholders’ Reports—Institutional Shares

Shareholders’ Reports—ETF Shares

Total Expenses

91

Net Investment Income

655

Realized Net Gain (Loss)

 

Investment Securities Sold

(572)

Foreign Currencies

29

Realized Net Gain (Loss)

(543)

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities

(34,627)

Foreign Currencies

7

Change in Unrealized Appreciation (Depreciation)

(34,620)

Net Increase (Decrease) in Net Assets Resulting from Operations

(34,508)

 

 

1 Inception.

2 Dividends are net of foreign withholding taxes of $28,000.

3 Interest income from an affiliated company of the fund was $24,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

35

Total World Stock Index Fund

 

Statement of Changes in Net Assets

 

 

June 24, 20081 to

 

October 31, 2008

 

($000)

Increase (Decrease) in Net Assets

 

Operations

 

Net Investment Income

655

Realized Net Gain (Loss)

(543)

Change in Unrealized Appreciation (Depreciation)

(34,620)

Net Increase (Decrease) in Net Assets Resulting from Operations

(34,508)

Distributions

 

Net Investment Income

 

Investor Shares

Institutional Shares

ETF Shares

Realized Capital Gain

 

Investor Shares

Institutional Shares

ETF Shares

Total Distributions

Capital Share Transactions

 

Investor Shares

51,939

Institutional Shares

6,987

ETF Shares

138,017

Net Increase (Decrease) from Capital Share Transactions

196,943

Total Increase (Decrease)

162,435

Net Assets

 

Beginning of Period

End of Period2

162,435

 

 

1 Inception.

2 Net Assets—End of Period includes undistributed net investment income of $684,000.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

36

Total World Stock Index Fund

 

Financial Highlights

 

Investor Shares

 

 

June 26, 20081 to

For a Share Outstanding Throughout the Period

October 31, 2008

Net Asset Value, Beginning of Period

$20.00

Investment Operations

 

Net Investment Income

.1602

Net Realized and Unrealized Gain (Loss) on Investments

(6.450)

Total from Investment Operations

(6.290)

Distributions

 

Dividends from Net Investment Income

Distributions from Realized Capital Gains

Total Distributions

Net Asset Value, End of Period

$13.71

 

 

Total Return3

–31.45%

 

 

Ratios/Supplemental Data

 

Net Assets, End of Period (Millions)

$41

Ratio of Total Expenses to Average Net Assets

0.46%4

Ratio of Net Investment Income to Average Net Assets

2.32%4

Portfolio Turnover Rate5

5%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Total returns do not reflect the 0.25% transaction fee on purchases; the 2% fee assessed on redemptions of shares held for less than two months; or the account service fee that may be applicable to certain accounts with balances below $10,000.

4 Annualized.

5 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

37

Total World Stock Index Fund

 

Financial Highlights

 

Institutional Shares

 

 

October 9, 20081 to

For a Share Outstanding Throughout the Period

October 31, 2008

Net Asset Value, Beginning of Period

$66.81

Investment Operations

 

Net Investment Income

.1242

Net Realized and Unrealized Gain (Loss) on Investments

1.696

Total from Investment Operations

1.820

Distributions

 

Dividends from Net Investment Income

Distributions from Realized Capital Gains

Total Distributions

Net Asset Value, End of Period

$68.63

 

 

Total Return3

2.72%

 

 

Ratios/Supplemental Data

 

Net Assets, End of Period (Millions)

$7

Ratio of Total Expenses to Average Net Assets

0.20%4

Ratio of Net Investment Income to Average Net Assets

2.58%4

Portfolio Turnover Rate5

5%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Total returns do not reflect the 0.25% transaction fee on purchases or the 2% fee assessed on redemptions of shares held for less than two months.

4 Annualized.

5 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

38

Total World Stock Index Fund

 

Financial Highlights

 

ETF Shares

 

 

June 24, 20081 to

For a Share Outstanding Throughout the Period

October 31, 2008

Net Asset Value, Beginning of Period

$49.74

Investment Operations

 

Net Investment Income

.3402

Net Realized and Unrealized Gain (Loss) on Investments

(16.490)

Total from Investment Operations

(16.150)

Distributions

 

Dividends from Net Investment Income

Distributions from Realized Capital Gains

Total Distributions

Net Asset Value, End of Period

$33.59

 

 

Total Return

–32.47%

 

 

Ratios/Supplemental Data

 

Net Assets, End of Period (Millions)

$114

Ratio of Total Expenses to Average Net Assets

0.29%3

Ratio of Net Investment Income to Average Net Assets

2.49%3

Portfolio Turnover Rate4

5%

 

 

1 Inception.

2 Calculated based on average shares outstanding.

3 Annualized.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

39

Total World Stock Index Fund

 

Notes to Financial Statements

 

Vanguard Total World Stock Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. The fund offers three classes of shares: Investor Shares, Institutional Shares, and ETF Shares. Investor Shares were first issued on June 26, 2008, and are available to any investor who meets the fund’s minimum purchase requirements. Institutional Shares were first issued on October 9, 2008, and are designed for investors who meet certain administrative and service criteria and invest a minimum of $5 million. ETF Shares were first issued on June 24, 2008, and are listed for trading on the NYSE Arca, Inc.; they can be purchased and sold through a broker.

 

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value.

 

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

 

3. Federal Income Taxes: The fund intends to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for the period from inception to October 31, 2008, and concluded that no provision for federal income taxes is required in the financial statements.

 

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

 

5. Security Lending: The fund may lend its securities to qualified institutional borrowers to earn additional income. Security loans are required to be secured at all times by collateral at least equal to the market value of securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability for the return of the collateral, during the period the securities are on loan. Security lending income represents the income earned on investing cash collateral, less expenses associated with the loan.

 

40

Total World Stock Index Fund

 

6. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on redemptions of capital shares are credited to paid-in capital.

 

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

 

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At October 31, 2008, the fund had contributed capital of $10,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.01% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

 

C. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

 

During the period ended October 31, 2008, the fund realized net foreign currency gains of $29,000, which increased distributable net income for tax purposes; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net investment income for tax purposes. Unrealized appreciation on passive foreign investment company holdings at October 31, 2008, was $9,000.

 

For tax purposes, at October 31, 2008, the fund had $699,000 of ordinary income available for distribution. The fund had available realized losses of $572,000 to offset future net capital gains through October 31, 2016.

 

At October 31, 2008, the cost of investment securities for tax purposes was $197,501,000. Net unrealized depreciation of investment securities for tax purposes was $34,636,000, consisting of unrealized gains of $1,154,000 on securities that had risen in value since their purchase and $35,790,000 in unrealized losses on securities that had fallen in value since their purchase.

 

D. During the period ended October 31, 2008, the fund purchased $199,277,000 of investment securities and sold $4,460,000 of investment securities, other than temporary cash investments.

Total World Stock Index Fund

 

41

E. Capital share transactions for each class of shares were:

 

 

 

Inception1 to

 

October 31, 2008

 

Amount

Shares

 

($000)

(000)

Investor Shares

 

 

Issued

56,750

3,304

Issued in Lieu of Cash Distributions

Redeemed2

(4,811)

(307)

Net Increase (Decrease)—Investor Shares

51,939

2,997

Institutional Shares

 

 

Issued

6,987

105

Issued in Lieu of Cash Distributions

Redeemed2

Net Increase (Decrease)—Institutional Shares

6,987

105

ETF Shares

 

 

Issued

138,017

3,400

Issued in Lieu of Cash Distributions

Redeemed2

Net Increase (Decrease)—ETF Shares

138,017

3,400

 

 

F. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

 

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

 

1 Inception was June 24, 2008, for ETF Shares, June 26, 2008, for Investor Shares, and October 9, 2008, for Institutional Shares.

2 Net of redemption fees of $40,000 (fund totals).

 

42

Total World Stock Index Fund

 

The following table summarizes the fund’s investments as of October 31, 2008, based on the inputs used to value them:

 

 

 

Investments

 

in Securities

Valuation Inputs

($000)

Level 1—Quoted Prices

87,406

Level 2—Other Significant Observable Inputs

75,459

Level 3—Significant Unobservable Inputs

Total

162,865

 

 

43

Report of Independent Registered Public Accounting Firm

 

To the Trustees of Vanguard International Equity Index Funds and the Shareholders of Vanguard Total World Stock Index Fund:

 

In our opinion, the accompanying statement of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard Total World Stock Index Fund (the “Fund”) at October 31, 2008, and the results of its operations, the changes in its net assets and the financial highlights for the period June 24, 2008 (commencement of operations) through October 31, 2008, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and by agreement to the underlying ownership records for Vanguard Market Liquidity Fund, provide a reasonable basis for our opinion.

 

 

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

 

December 19, 2008

 

 

 

Special 2008 tax information (unaudited) for Vanguard Total World Stock Index Fund

 

This information for the fiscal period ended October 31, 2008, is included pursuant to provisions of the Internal Revenue Code.

 

For corporate shareholders, 47.6% of investment income (dividend income plus short-term gains, if any) qualifies for the dividends-received deduction.

 

The fund will pass through to shareholders foreign source income of $388,000 and foreign taxes paid of $18,000. The pass-through of foreign taxes paid will affect only shareholders on the dividend record date in December 2008. Shareholders will receive more detailed information along with their Form 1099-DIV in January 2009.

 

 

44

Trustees Approve Advisory Arrangement

 

The board of trustees of Vanguard Total World Stock Index Fund approved the launch of the fund effective in June 2008, utilizing an internalized management structure whereby The Vanguard Group, Inc. (Vanguard)—through its Quantitative Equity Group—would provide investment advisory services at cost. The board determined that the investment advisory arrangement with Vanguard was in the best interests of the fund and its prospective shareholders.

 

The board based its decision upon an evaluation of the advisor’s investment staff, portfolio management process, and performance of similar mandates. The trustees considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.

 

Nature, extent, and quality of services

The board considered the benefits to shareholders of selecting the Quantitative Equity Group as an advisor to the fund, particularly in light of the nature, extent, and quality of services to be provided by Vanguard. The board noted that Vanguard has a track record of success in its management of other Vanguard index funds as well as actively managed funds. Vanguard has been managing investments for more than 25 years. George U. Sauter, Vanguard managing director and chief investment officer, has been in the investment management business since 1985. Vanguard adheres to a sound, disciplined investment management process; the portfolio management team has considerable experience, stability, and depth.

 

The board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted approval of the advisory arrangement.

 

Investment performance

The board determined that, in its management of other Vanguard funds, the Quantitative Equity Group has a track record of consistent performance and disciplined investment processes. Information about the fund’s performance since inception can be found in the Performance Summary section of this report.

 

Cost

The board considered the cost of services to be provided, including consideration of competitive fee rates and the fact that, after the implementation of the arrangement with Vanguard, the fund’s advisory expense ratio would be well below the average advisory expense ratio for its peer group. Information about the fund’s expense ratio appears in the About Your Fund’s Expenses section of this report as well as in the Financial Statements section.

 

The board does not conduct a profitability analysis of Vanguard, because of Vanguard’s unique “at-cost” structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees, and produces “profits” only in the form of reduced expenses for fund shareholders.

 

The benefit of economies of scale

The board concluded that the fund’s low-cost arrangement with Vanguard ensures that the fund will realize economies of scale as it grows, with the cost to shareholders declining as the fund’s assets increase.

 

The board will consider whether to renew the advisory arrangement after a one-year period.

 

45

Glossary

 

Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any holdings in short-term reserves are excluded.

 

Expense Ratio. The percentage of a fund’s average net assets used to pay its annual administrative and advisory expenses. These expenses directly reduce returns to investors.

 

Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.

 

Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.

 

Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur higher transaction costs and may be more likely to distribute capital gains (which may be taxable to investors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.

 

 

46

 

 

 

 

This page intentionally left blank.

 

 

The People Who Govern Your Fund

 

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.

 

A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals.

 

Our independent board members bring distinguished backgrounds in business, academia, and public service to their task of working with Vanguard officers to establish the policies and oversee the activities of the funds. Among board members’ responsibilities are selecting investment advisors for the funds; monitoring fund operations, performance, and costs; reviewing contracts; nominating and selecting new trustees/directors; and electing Vanguard officers.

 

Each trustee serves a fund until its termination; or until the trustee’s retirement, resignation, or death; or otherwise as specified in the fund’s organizational documents. Any trustee may be removed at a shareholders’ meeting by a vote representing two-thirds of the net asset value of all shares of the fund together with shares of other Vanguard funds organized within the same trust. The table on these two pages shows information for each trustee and executive officer of the fund. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482.

 

Chairman of the Board and Trustee

 

 

John J. Brennan1

 

Born 1954

Principal Occupation(s) During the Past Five Years: Chairman of the Board and Director/

Trustee Since May 1987;

Trustee of The Vanguard Group, Inc., and of each of the investment companies served

Chairman of the Board

by The Vanguard Group; Chief Executive Officer and President of The Vanguard Group

156 Vanguard Funds Overseen

and of each of the investment companies served by The Vanguard Group (1996–2008).

 

 

Independent Trustees

 

 

 

Charles D. Ellis

 

Born 1937

Principal Occupation(s) During the Past Five Years: Applecore Partners (pro bono ventures

Trustee Since January 2001

in education); Senior Advisor to Greenwich Associates (international business strategy

156 Vanguard Funds Overseen

consulting); Successor Trustee of Yale University; Overseer of the Stern School of Business

 

at New York University; Trustee of the Whitehead Institute for Biomedical Research.

 

 

Emerson U. Fullwood

 

Born 1948

Principal Occupation(s) During the Past Five Years: Executive Chief Staff and Marketing

Trustee Since January 2008

Officer for North America since 2004 and Corporate Vice President of Xerox Corporation

156 Vanguard Funds Overseen

(photocopiers and printers); Director of SPX Corporation (multi-industry manufacturing),

 

of the United Way of Rochester, and of the Boy Scouts of America.

 

 

Rajiv L. Gupta

 

Born 1945

Principal Occupation(s) During the Past Five Years: Chairman, President, and

Trustee Since December 20012

Chief Executive Officer of Rohm and Haas Co. (chemicals); Board Member of

156 Vanguard Funds Overseen

the American Chemistry Council; Director of Tyco International, Ltd. (diversified

 

manufacturing and services), since 2005.

 

 

Amy Gutmann

 

Born 1949

Principal Occupation(s) During the Past Five Years: President of the University of

Trustee Since June 2006

Pennsylvania since 2004; Professor in the School of Arts and Sciences, Annenberg School

156 Vanguard Funds Overseen

for Communication, and Graduate School of Education of the University of Pennsylvania

 

since 2004; Provost (2001–2004) and Laurance S. Rockefeller Professor of Politics and

 

the University Center for Human Values (1990–2004), Princeton University; Director of

 

Carnegie Corporation of New York since 2005 and of Schuylkill River Development

 

Corporation and Greater Philadelphia Chamber of Commerce since 2004; Trustee of

 

the National Constitution Center since 2007.

 

JoAnn Heffernan Heisen

 

Born 1950

Principal Occupation(s) During the Past Five Years: Corporate Vice President and

Trustee Since July 1998

Chief Global Diversity Officer since 2006, Vice President and Chief Information

156 Vanguard Funds Overseen

Officer (1997–2005), and Member of the Executive Committee of Johnson &

 

Johnson (pharmaceuticals/consumer products); Director of the University Medical

 

Center at Princeton and Women’s Research and Education Institute.

 

 

André F. Perold

 

Born 1952

Principal Occupation(s) During the Past Five Years: George Gund Professor of Finance

Trustee Since December 2004

and Banking, Harvard Business School; Senior Associate Dean and Director of Faculty

156 Vanguard Funds Overseen

Recruiting, Harvard Business School; Director and Chairman of UNX, Inc. (equities

 

trading firm); Chair of the Investment Committee of HighVista Strategies LLC (private

 

investment firm) since 2005.

 

 

Alfred M. Rankin, Jr.

 

Born 1941

Principal Occupation(s) During the Past Five Years: Chairman, President, Chief Executive

Trustee Since January 1993

Officer, and Director of NACCO Industries, Inc. (forklift trucks/housewares/lignite); Director

156 Vanguard Funds Overseen

of Goodrich Corporation (industrial products/aircraft systems and services).

 

 

J. Lawrence Wilson

 

Born 1936

Principal Occupation(s) During the Past Five Years: Retired Chairman and Chief Executive

Trustee Since April 1985

Officer of Rohm and Haas Co. (chemicals); Director of Cummins Inc. (diesel engines) and

156 Vanguard Funds Overseen

AmerisourceBergen Corp. (pharmaceutical distribution); Trustee of Vanderbilt University

 

and of Culver Educational Foundation.

 

 

Executive Officers1

 

 

 

Thomas J. Higgins

 

Born 1957

Principal Occupation(s) During the Past Five Years: Principal of The Vanguard Group, Inc.;

Chief Financial Officer

Treasurer of each of the investment companies served by The Vanguard Group; Chief

Since September 2008

Financial Officer of each of the investment companies served by The Vanguard

Treasurer Since July 1998

Group since 2008.

156 Vanguard Funds Overseen

 

 

 

F. William McNabb III

 

Born 1957

Principal Occupation(s) During the Past Five Years: Chief Executive Officer, Director,

Chief Executive Officer

and President of The Vanguard Group, Inc., since 2008; Chief Executive Officer and

Since August 31, 2008

President of each of the investment companies served by The Vanguard Group since

President Since March 2008

2008; Director of Vanguard Marketing Corporation; Managing Director of The Vanguard

156 Vanguard Funds Overseen

Group (1995–2008).

 

 

Heidi Stam

 

Born 1956

Principal Occupation(s) During the Past Five Years: Managing Director of The Vanguard

Secretary Since July 2005

Group, Inc., since 2006; General Counsel of The Vanguard Group since 2005; Secretary of

156 Vanguard Funds Overseen

The Vanguard Group and of each of the investment companies served by The Vanguard

 

Group since 2005; Director and Senior Vice President of Vanguard Marketing Corporation

 

since 2005; Principal of The Vanguard Group (1997–2006).

 

Vanguard Senior Management Team

 

 

 

 

 

 

 

 

R. Gregory Barton

Kathleen C. Gubanich

Michael S. Miller

Ralph K. Packard

George U. Sauter

Mortimer J. Buckley

Paul A. Heller

James M. Norris

Glenn W. Reed

 

 

Founder

 

John C. Bogle

Chairman and Chief Executive Officer, 1974–1996

 

1

These individuals are “interested persons” as defined in the Investment Company Act of 1940.

2

December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.

More information about the trustees is in the Statement of Additional Information, available from The Vanguard Group.

 

 


 

P.O. Box 2600

 

Valley Forge, PA 19482-2600

 

Connect with Vanguard® > www.vanguard.com

 

Fund Information > 800-662-7447

All comparative mutual fund data are from Lipper Inc.

 

or Morningstar, Inc., unless otherwise noted.

Direct Investor Account Services > 800-662-2739

 

 

 

Institutional Investor Services > 800-523-1036

You can obtain a free copy of Vanguard’s proxy voting

 

guidelines by visiting our website, www.vanguard.com,

Text Telephone for People

and searching for “proxy voting guidelines,” or by

With Hearing Impairment > 800-952-3335

calling Vanguard at 800-662-2739. The guidelines are

 

also available from the SEC’s website, www.sec.gov.

 

In addition, you may obtain a free report on how your

 

fund voted the proxies for securities it owned during

This material may be used in conjunction

the 12 months ended June 30. To get the report, visit

with the offering of shares of any Vanguard

either www.vanguard.com or www.sec.gov.

fund only if preceded or accompanied by

 

the fund’s current prospectus.

 

 

You can review and copy information about your fund

 

at the SEC’s Public Reference Room in Washington, D.C.

“FTSE®” is a trademark jointly owned by the London

To find out more about this public service, call the SEC

Stock Exchange plc and The Financial Times Limited

at 202-551-8090. Information about your fund is also

and is used by FTSE International Limited under license.

available on the SEC’s website, and you can receive

“All-World” is a trademark of FTSE International

copies of this information, for a fee, by sending a

Limited. The FTSE All-World Index is calculated by

request in either of two ways: via e-mail addressed to

FTSE International Limited. FTSE International Limited

publicinfo@sec.gov or via regular mail addressed to the

does not sponsor, endorse, or promote the fund; is not

Public Reference Section, Securities and Exchange

in any way connected to it; and does not accept any

Commission, Washington, DC 20549-0102.

liability in relation to its issue, operation, and trading.

 

 

 

The funds or securities referred to herein are not

 

sponsored, endorsed, or promoted by MSCI, and MSCI

 

bears no liability with respect to any such funds or

 

securities. For any such funds or securities, the

 

prospectus or the Statement of Additional Information

 

contains a more detailed description of the limited

 

relationship MSCI has with The Vanguard Group and

 

any related funds.

 

 

© 2008 The Vanguard Group, Inc.

Russell is a trademark of The Frank Russell Company.

All rights reserved.

 

Vanguard Marketing Corporation, Distributor.

 

 

 

Q6280 122008

 

 

 

Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.

 

Item 3: Audit Committee Financial Expert. The following members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts serving on its Audit Committee, and to be independent: Charles D. Ellis, Rajiv L. Gupta, JoAnn Heffernan Heisen, André F. Perold, Alfred M. Rankin, Jr., and J. Lawrence Wilson.

 

Item 4: Principal Accountant Fees and Services.

 

(a) Audit Fees.

Audit Fees of the Registrant

Fiscal Year Ended October 31, 2008: $178,000

Fiscal Year Ended October 31, 2007: $137,000

 

Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.

Fiscal Year Ended October 31, 2008: $3,055,590

Fiscal Year Ended October 31, 2007: $2,835,320

 

(b) Audit-Related Fees.

Fiscal Year Ended October 31, 2008: $626,240

Fiscal Year Ended October 31, 2007: $630,400

Includes fees billed in connection with assurance and related services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.

 

(c) Tax Fees.

Fiscal Year Ended October 31, 2008: $230,400

Fiscal Year Ended October 31, 2007: $215,900

Includes fees billed in connection with tax compliance, planning and advice services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group and related to income and excise taxes.

(d) All Other Fees.

Fiscal Year Ended October 31, 2008: $0

Fiscal Year Ended October 31, 2007: $0

 

Includes fees billed for services related to risk management and privacy matters. Services were provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.

(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; and (4) other registered investment companies in the Vanguard Group. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.

In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.

The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; or (4) other registered investment companies in the Vanguard Group.

(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.

 

(g) Aggregate Non-Audit Fees.

Fiscal Year Ended October 31, 2008: $230,400

Fiscal Year Ended October 31, 2007: $215,900

Includes fees billed for non-audit services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.

(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.

Item 5: The Registrant is a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: Charles D. Ellis, Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan Heisen, André F. Perold, Alfred M. Rankin, Jr., and J. Lawrence Wilson.

 

Item 6: Not Applicable.

 

Item 7: Not Applicable.

 

Item 8: Not Applicable.

 

Item 9: Not Applicable.

 

Item 10: Not Applicable.

 

Item 11: Controls and Procedures.

 

(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

(b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 12: Exhibits.

 

 

(a)

Code of Ethics.

 

(b)

Certifications.

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

VANGUARD INTERNATIONAL EQUITY INDEX FUNDS

 

 

By:

/s/ F. WILLIAM MCNABB III*

 

F. WILLIAM MCNABB III

 

CHIEF EXECUTIVE OFFICER

 

 

Date: December 16, 2008

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

 

VANGUARD INTERNATIONAL EQUITY INDEX FUNDS

 

 

By:

/s/ F. WILLIAM MCNABB III*

 

F. WILLIAM MCNABB III

 

CHIEF EXECUTIVE OFFICER

 

 

Date: December 16, 2008

 

 

 

 

VANGUARD INTERNATIONAL EQUITY INDEX FUNDS

 

 

By:

/s/ THOMAS J. HIGGINS*

 

THOMAS J. HIGGINS

 

CHIEF FINANCIAL OFFICER

 

 

Date: December 16, 2008

 

 

* By: /s/ Heidi Stam

 

Heidi Stam, pursuant to a Power of Attorney filed on January 18, 2008, see file Number 2-29601, Incorporated by Reference; and pursuant to a Power of Attorney filed on September 26, 2008, see File Number 2-47371, Incorporated by Reference.