Ishr Stx Eu 50 Regulatory News (EUN)

19 Jan 2005 07:00

European Exchange-Traded Fnd Co.PLC18 January 2005 European Exchange-Traded Fund Company plc AUDITED ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 30 September 2004 Background The Directors of European Exchange-Traded Fund Company plc ("the Company") aredelighted to announce the Company's results for the period ended 30 September2004. The annual report and accounts for the Company were approved by theDirectors at their meeting on 13 January 2005 Extracts of the accounts are givenbelow. The full English text is available, free of charge, from the Company'shead office or the Investment Manager, on request. Company Information The Company was incorporated on 16 December 1999 as an open-ended investmentcompany with variable capital under the laws of Ireland as a public limitedcompany pursuant to the Companies Acts, 1963 to 2003 and the EuropeanCommunities (Undertakings for Collective Investment in Transferable Securities),Regulations, 2003, as amended. The Company has an umbrella structure, so that different Funds may beestablished within the Company, subject to prior approval of the Irish FinancialServices Regulatory Authority (IFSRA). Each Fund will have a separate portfolioof assets, which will be invested in accordance with the investment objectivesand policies of that Fund. Each Fund will be treated as bearing its ownliabilities. However, the liabilities of any Fund or Funds are binding on theCompany as a whole. As at 30 September 2004 the following Funds were in existence: Fund Base Listed on exchanges currencyiShares DJ STOXX 50 • Borsa Italiana, Frankfurt Stock Exchange, Euronext Amsterdam, Euronext Paris, Irish Stock Exchange, London Stock Exchange, SWX, Virt-X iShares DJ Euro STOXX 50 • Borsa Italiana, Frankfurt Stock Exchange, Euronext Amsterdam, Euronext Paris, Irish Stock Exchange, London Stock Exchange, SWX, Virt-X All figures relating to each Fund are shown in the relevant base currency. Thefinancial statements of the Company are shown in euro. These Funds are traded as exchange traded funds (ETFs), which provide theflexibility of a share with the diversification of a Fund. They can be boughtand sold like any other shares listed on a stock exchange, and provide instantexposure to many companies. Report of the Investment Manager (i) Fund review Two Funds have been established and approved by the Irish Financial ServicesRegulatory Authority with the following investment objectives and policies: iShares DJ STOXX 50 The investment objective of iShares DJ STOXX 50 is to track closely the DowJones STOXX 50 IndexSM, thereby allowing investors to obtain market exposure tothe companies comprising the index through the holding of shares in the Fund. iShares DJ Euro STOXX 50 The investment objective of iShares DJ Euro STOXX 50 is to track closely the DowJones EURO STOXX 50 IndexSM, thereby allowing investors to obtain marketexposure to the companies comprising the index through the holding of shares inthe Fund. The performance of the Funds for the year under review is shown below:Fund Launch Net asset value NAV per share Return since One year return TER* date (NAV) launch 30/09/04 six months to 30/09/04 at launch at 30/09/ at launch at 30/09 04 /04 Million Million Fund Index Fund IndexiShares DJ STOXX 50 03/04/ €4.96 €508.61 €49.61 €26.63 -41.55% -40.61% 14.57% 14.78% 0.35 2000iShares DJ Euro 03/04/ €153.59 €2,181.67 €51.20 €27.30 -41.84% -41.91% 16.37% 16.40% 0.35STOXX 50 2000 Past performance will not necessarily be repeated and is no guarantee of futurereturns. \* Total expense ratio The total expense ratio (TER%) shown above expresses the sum of all operatingexpenses charged to the Fund's assets as a percentage of the average fund assetsduring the year. The additional costs incurred by the fund on the purchase andsale of investments are not included in the expense ratio. (ii) Important events during the period Following the change of Sponsor and Investment Manager on 15 September 2003, theCompany appointed Bank of Ireland Securities Services Limited as Administratorto the Company, replacing AIB/BNY Fund Management (Ireland) Limited. The Companyalso appointed The Governor and Company of the Bank of Ireland as Custodian,replacing AIB/BNY Trust Company Limited. The registered office of the Company changed from Guild House, Guild Street,IFSC, Dublin 1, Ireland to New Century House, International Financial ServicesCentre, Mayor Street Lower, Dublin 1, Ireland on 14 November 2003. The Company Secretary changed from Bradwell Limited to Bank of IrelandSecurities Services Limited on 14 November 2003. The Commission Bancaire,Financiere et des Assurances approved the Company's request to terminate theregistration of the Company in Belgium and this became effective on 25 May 2004. Following the completion of the appointment of Barclays Global InvestorsLimited as Investment Manager, the following local agents were replaced and newcontracts executed: Country Previous agent New agent Date of new agreementGermany Merrill Lynch Capital Markets Ltd, Dresdner Bank Frankfurt/Main Branch Aktiengesellschaft 15 November 2003Netherlands Merrill Lynch NV Barclays Global Investors Ltd (Amsterdam Branch) 15 November 2003Switzerland Merrill Lynch Capital Markets AG Barclays Bank (Suisse) SA 10 July 2004UK Merrill Lynch Investment Services Barclays Global Investors 15 November 2003 Ltd LtdAgreements with the following local agents were terminated:Country Previous agent Date terminatedBelgium KBC Bank NV 22 June 2004Italy Merrill Lynch International Bank Ltd (Italian 14 November 2003 Branch)Italy BNP Paribas Securities Services (Milan Branch) 14 November 2003 The Funds pay dividends quarterly instead of semi-annually from 14 November2003. Up to 14 November 2003, the funds paid dividends semi-annually. From 14November 2003, the funds paid dividends quarterly. Mr John Morgan resigned as Director of the Company on 23 February 2004. MrCharles Vincent Reilly was appointed as Director of the Company on 23 February2004. (iii) European market background report Impressive equity market returns were delivered as European business confidenceimproved during the first few months of the year under review. Stock marketsacross the region performed well in anticipation of an economic recovery. Thisreflected the overall strength of the recovery seen in the US, buoyant stockmarkets and the effective abandonment of the euro zone's Stability and GrowthPact. This rise in European share prices appeared to have been underpinned more byimprovements in the global economic environment, rather than by any evidence ofa real domestic revival. Nevertheless, the brighter global climate was startingto filter through to increasing corporate earnings forecasts, with a significantnumber of European companies beating analysts' profit estimates. As we moved into the early part of 2004, the euro's continued appreciationversus the weak US dollar remained a key concern for equity market investors.The euro's rise was stifling overseas demand for European goods. Confidence inthe outlook for Europe's stock markets appeared to be further hampered by theongoing weakness of the European economy. These concerns were largely offset bythe relatively attractive value offered by European equities that becameincreasingly apparent. The outlook for the region's economy and the euro continued to hamper confidenceas the review period progressed. Investors had also started to wonder whetherthe euro zone's recovery could stall just when they hoped it would really takeroot. Business confidence across the region slipped, suggesting that the recentpick up in activity could run out of steam in the second half of 2004. Theeuro's continued ascent appeared to be the main culprit for the slide inbusiness confidence, with European firms losing market share to their rivals inmarkets elsewhere. Moreover, domestic demand remained subdued. During the final few months of the review period, European equity markets werebroadly flat. Continental Europe's recovery had been gaining momentum, with theeuro zone economy growing at its fastest pace in three years. However, investorsremained mindful that this revival in activity could easily fizzle out asEuropean business confidence measures continued to indicate. Domestic economicdemand also remained weak with European consumers saving heavily rather thanspending, leaving the euro zone economy still largely dependent on exports. European Exchange Traded-Fund Company plc Statement of operations 2004 2003For the year ended 30 September 2004 •'000s •'000sIncome 67,996 44,984Expenses (8,396) (6,034)Net operating income 59,600 38,950Realised losses on investments (33,572) (133,755)Realised gains on futures contracts 1,116 -Net change in unrealised gains on investments 227,996 231,773Net change in unrealised losses on futures contracts (11) -Currency gains/(losses) 95 (321)Dividends (60,413) (40,853)Increase in net assets resulting from operations 194,811 95,794Statement of changes in net assets 2004 2003For the year ended 30 September 2004 •'000s •'000s _________ _________Net assets at beginning of the year 1,719,250 1,215,268Increase in net assets resulting from operations 194,811 95,794Capital transactionsValue of assets received on share creation 1,021,377 589,270Value of assets transferred on share redemption (245,161) (181,082) _________ _________Net assets at the end of the year 2,690,277 1,719,250 There are no recognised gains or losses arising in the year other than theincrease in net assets attributable to shareholders of the Company disclosedabove. In arriving at the results for the financial year, all amounts aboverelate to continuing operations. Statement of net assets 2004 2003As at 30 September 2004 •'000s •'000sCurrent assetsInvestments at market value 2,689,728 1,721,175Debtors and other receivables 31,329 1,419Cash and bank balances 36,998 33,928Total assets 2,758,055 1,756,522Current liabilities (amounts falling due within 1 year)Creditors (59,520) (2,324)Dividend payable (8,258) (34,948)Total liabilities (67,778) (37,272)Total net assets 2,690,277 1,719,250Shareholders' equity 2,690,277 1,719,250 iShares DJ STOXX 50 Statement of operations 2004 2003For the year ended 30 September 2004 •'000s •'000sIncome 13,835 11,714Expenses (1,683) (1,694)Net operating income 12,152 10,020Realised losses on investments (8,369) (29,683)Realised gains on futures contracts 5 -Net change in unrealised gains on investments 53,663 37,994Net change in unrealised losses on futures contracts (4) -Currency gains/(losses) 141 (318)Dividend (12,394) (10,367)Increase in net assets resulting from operations 45,194 7,646Statement of changes in net assets 2004 2003For the year ended 30 September 2004 •'000s •'000s ________ ________Net assets at beginning of the year 397,838 360,870Increase in net assets resulting from operations 45,194 7,646Capital transactionsValue of assets received on share creation 84,125 51,160Value of assets transferred on share redemption (18,548) (21,838) ________ ________Net assets at the end of the year 508,609 397,838 There are no recognised gains or losses arising in the year other than theincrease in net assets attributable to shareholders of the Fund. In arriving atthe results for the financial year, all amounts above relate to continuingoperations. Statement of net assets 2004 2003As at 30 September 2004 •'000s •'000sCurrent assetsInvestments at market value 508,387 398,068Debtors and other receivables 1,196 1,419Cash and bank balances 1,540 5,704Total assets 511,123 405,191Current liabilities (amounts falling due within 1 Year)Creditors (249) (506)Dividend payable (2,265) (6,847)Total liabilities (2,514) (7,353)Total net assets 508,609 397,838Shareholders' equity 508,609 397,838 ___________ ___________Shares in issue 19,100,000 16,700,000Net asset value per share (2002: €23.13) €26.63 €23.82' iShares DJ Euro STOXX 50 Statement of operations 2004 2003For the year ended 30 September 2004 •'000s •'000sIncome 54,161 33,270Expenses (6,713) (4,340)Net operating income 47,448 28,930Realised losses on investments (25,203) (104,072)Realised gains on futures contracts 1,111 -Net change in unrealised gains on investments 174,333 193,779Net change in unrealised losses on futures contracts (7) -Currency losses (46) (3)Dividend (48,019) (30,486)Increase in net assets resulting from operations 149,617 88,148Statement of changes in net assets 2004 2003For the year ended 30 September 2004 •'000s •'000s _________ _________Net assets at beginning of the year 1,321,412 854,398Increase in net assets resulting from operations 149,617 88,148Capital transactionsValue of assets received on share creation 937,252 538,110Value of assets transferred on share redemption (226,613) (159,244) _________ _________Net assets at the end of the year 2,181,668 1,321,412 There are no recognised gains or losses arising in the year other than theincrease in net assets attributable to shareholders of the Fund. In arriving atthe results for the financial year, all amounts above relate to continuingoperations. Statement of net assets 2004 2003As at 30 September 2004 •'000s •'000Current assetsInvestments at market value 2,181,341 1,323,107Debtors and other receivables 30,133 -Cash and bank balances 35,458 28,224Total assets 2,246,932 1,351,331Current liabilities (amounts falling due within 1 Year)Creditors (59,271) (1,818)Dividend payable (5,993) (28,101)Total liabilities (65,264) (29,919)Total net assets 2,181,668 1,321,412Shareholders' equity 2,181,668 1,321,412 ___________ ___________Shares in issue 79,900,000 55,100,000Net asset value per share (2002: €22.08) €27.30 €23.98 Regulatory Information Barclays Global Investors Limited, which is authorised and regulated by theFinancial Services Authority ("FSA"), has issued this document for access in theUnited Kingdom ("UK ") only. The European Exchange Traded Fund Company PLC(herein the Company) is not regulated by the FSA, it is authorised by the IrishFinancial Services Regulatory Authority. Most of the protections provided by theUK regulatory system do not apply to its operation, and compensation will not beavailable under the UK Financial Services Compensation Scheme on its default.The Company is an investment company with variable capital incorporated inIreland. The Company is a recognised scheme for the purposes of the FinancialServices and Markets Act 2000. Any subscription to any fund of the Company ismade on the basis of the Fund prospectus which is available from the InvestmentManager at: iShares Business Development Team, Barclays Global InvestorsLimited, Murray House, 1 Royal Mint Court, London EC3N 4HH. Index disclaimers "Dow Jones", "STOXX", "Dow Jones EURO STOXX 50 IndexSM", "Dow Jones STOXX 50IndexSM" are trademarks and/or service marks of Dow Jones & Company, Inc. and/orSTOXX Limited and have been licensed for use for certain purposes by theEuropean Exchange-Traded Fund Company plc. The funds of the EuropeanExchange-Traded Fund Company plc, iShares DJ STOXX 50 and iShares DJ EURO STOXX50, based on the Dow Jones STOXX 50SM Index and Dow Jones EURO STOXX 50SM Indexrespectively, are not sponsored, endorsed, sold or promoted by Dow Jones orSTOXX, and neither Dow Jones nor STOXX makes any representation regarding theadvisability of trading in the funds. General disclaimers This document has been issued by Barclays Global Investors Limited. The price ofthe investment (which may trade in limited markets) may go up or down and theinvestor may not get back the amount invested. Your income is not fixed and mayfluctuate. Funds in this document may not be registered or authorised in certainjurisdictions and therefore may not be available for certain investors. Thisdocument does not constitute an offer or solicitation to sell or a solicitationof an offer to buy any shares of any fund described in this document, nor shallany such shares be offered or sold to any person in any jurisdiction in which anoffer, solicitation, purchase or sale would be unlawful under the securities lawof that jurisdiction. The financial information set out above does not constitute the Company'sstatutory accounts for the year ended 30 September 2004 ("the 2004 accounts"),or the year ended 30 September 2003 ("the 2003 accounts"). The financialinformation for the period ended 30 September 2003 is derived from the 2003accounts. The Auditors (PricewaterhouseCoopers) have reported on the 2003accounts; their report was unqualified. The Auditors have reported on the 2004accounts; their report was unqualified. Contact name Stephen Boustouler iShares(R)from BARCLAYS GLOBAL INVESTORS WWW.iSHARES.NET (c) January 2005 Barclays Global Investors LimitedAll rights reserved This announcement has been issued through the Companies Announcement Service of the Irish Stock Exchange. This information is provided by RNS The company news service from the London Stock Exchange