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Wednesday 22 May, 2002

iShares PLC

Annual Report & Accts. Pt-2

iShares PLC
22 May 2002




PART 2

IFTSE 100 FUND


Statement of operations

For the year ended 28 February 2002
                                                                     Notes                    2002                 2001
                                                                                             £000s                £000s

Realised gains / (losses) on investments                                                    (8,765)                (815)
Net change in unrealised gains / (losses) on investments                                    (9,941)              (5,722)
     Income                                                            2                      4,952                1,896
     Expenses                                                          3                      (730)                (348)
Net income                                                                                    4,222                1,548

Dividends                                                              4                    (3,200)              (1,547)

Decrease in net assets resulting from operations                                           (17,684)              (6,536)



Statement of changes in net assets

For the year ended 28 February 2002
                                                                     Notes                     2002                 2001
                                                                                              £000s                £000s

Net assets at beginning of the period                                                       119,663                    -
Decrease in net assets resulting from operations                                           (17,684)              (6,536)

Capital transactions                                                   
Value of assets received on share creation                             7                    160,297              126,199
Value of assets transferred on share redemption                        7                        (1)                    -

Net assets at the end of the year                                                           262,275              119,663



Statement of net assets

As at 28 February 2002
                                                                    Notes                   2002               2001
                                                                                           £000s              £000s

     Current assets                                                                      
     Investments                                                                         260,889            118,269  
     Debtors                                                          5                    1,511                564  
     Cash and bank balances                                                                  471              1,581
     Other assets                                                                            169                199
                                                                                         263,040            120,643
                                                                                         
Current liabilities (amounts falling due within 1 Year)               
     Creditors                                                        6                    (564)              (316)
     Dividends payable                                                4                    (201)              (664)     
               
                                                                                           (765)              (980)

Total net assets                                                                         262,275            119,663

Shareholders' equity                                                                 262,274,872        119,662,488

Shares in issue                                                       7               51,219,707         12,500,000

Net asset value per share                                                                  £5.12              £9.57



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                   Nominal    Investment                                               Value £           2002
                                                                                                   % of total
                                                                                                   net assets
                             UNITED KINGDOM
                             Aerospace

                     344,758 Rolls Royce                                               555,060            0.21
                     119,667 Smiths Industries                                         848,439            0.32
                                                                                     1,403,499            0.53
                             Airline/Airports
                     228,537 BAA                                                     1,459,209            0.56
                     233,078 British Airways                                           474,314            0.18
                                                                                     1,933,523            0.74
                             Asset Managers
                     168,445 Amvescap                                                1,436,836            0.55
                      15,724 Schroders Non-Voting                                      115,571            0.04
                      36,513 Schroders                                                 290,096            0.11
                                                                                     1,842,503            0.70
                             Banks - Retail
                     310,709 Abbey National                                          2,961,057            1.13
                     109,646 Alliance & Leicester                                      913,351            0.35
                     356,942 Barclays                                                7,406,547            2.82
                   4,491,006 Deutsche Bank (London) Linked Notes                     4,359,869            1.66
                             03/07/2002 GBP
                     764,211 HBOS                                                    5,662,804            2.16
                   2,010,284 HSBC Holdings                                          15,529,444            5.92
                   1,198,616 Lloyds TSB Group                                        8,150,589            3.10
                      90,733 Northern Rock                                             617,892            0.24
                     613,817 Royal Bank of Scotland Group                           10,631,310            4.05
                     242,341 Standard Chartered                                      1,674,576            0.64
                                                                                    57,907,439           22.07
                             Beverages - Brewers
                     139,373 Scottish & Newcastle                                      773,520            0.29
                     181,018 South African Breweries                                   847,164            0.32
                                                                                     1,620,684            0.61
                             Beverages, Distillers & Vintners
                     230,063 Allied Domecq                                             924,853            0.35
                     730,554 Diageo                                                  6,136,654            2.34
                                                                                     7,061,507            2.70



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                                Nominal Investment                                  Value £              2002
                                                                                                   % of total
                                                                                                   net assets
                                        UNITED KINGDOM (Continued)
                                        Breweries, Pubs & Restaurants

                                477,051 Compass Group                             2,299,386               0.88
                                186,980 Six Continents                            1,320,079               0.50
                                                                                  3,619,465               1.38
                                        Broadcasting Contractors
                                596,315 Granada                                     685,762               0.26
                                                                                    685,762               0.26
                                        Building Materials
                                158,330 Hanson                                      739,401               0.28
                                                                                    739,401               0.28
                                        Building Merchants
                                123,863 Wolseley                                    739,462               0.28
                                                                                    739,462               0.28
                                        Business Support Services
                                155,529 Brambles Industries                         477,474               0.18
                                144,841 Capita Group                                672,062               0.26
                                372,667 Hays                                        736,017               0.28
                                420,085 Rentokil Initial                          1,120,577               0.43
                                                                                  3,006,130               1.15
                                        Cable & Satellite
                                203,425 British Sky Broadcasting                  1,460,592               0.56
                                        Group
                                                                                  1,460,592               0.56
                                        Chemical - Commodity
                                105,984 BOC Group                                 1,105,413               0.42
                                                                                  1,105,413               0.42
                                        Chemical - Speciality
                                 99,802 Imperial Chemical Industries Nil Paid        94,812               0.04
                                        Shares
                                156,822 Imperial Chemical Industries                446,943               0.17
                                                                                    541,755               0.21
                                        Computer Services
                                 96,271 Logica                                      370,643               0.14
                                                                                    370,643               0.14
                                        Computer Software
                                272,930 Sage Group                                  565,647               0.22
                                                                                    565,647               0.22
                                        Defence
                                654,567 BAE Systems                               2,081,523               0.79
                                                                                  2,081,523               0.79

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                                  Nominal Investment                                Value £               2002
                                                                                                    % of total
                                                                                                    net assets
                                          UNITED KINGDOM (Continued)
                                          Distributors of Industrial
                                          Components

                                   93,490 Electrocomponents                         464,645               0.18
                                                                                    464,645               0.18
                                          Electricity
                                  240,618 Innogy Holdings                           616,584               0.24
                                  240,618 International Power                       433,112               0.17
                                  382,791 National Grid Group                     1,769,451               0.67
                                  140,235 Powergen                                1,079,810               0.41
                                  184,395 Scottish & Southern Energy              1,170,908               0.45
                                  398,086 Scottish Power                          1,699,827               0.65
                                                                                  6,769,692               2.59
                                          Electronic Equipment
                                  753,735 Invensys                                  723,586               0.28
                                                                                    723,586               0.28
                                          Fixed Telecommunications
                                1,867,650 British Telecom Group                   4,776,515               1.82
                                  546,926 Cable & Wireless                        1,203,237               0.46
                                                                                  5,979,752               2.28
                                          Food & Drug Retailers
                                  332,485 Morrison (Wm.) Supermarkets               688,244               0.26
                                  225,862 Safeway                                   720,500               0.27
                                  311,166 Sainsbury (J)                           1,301,452               0.50
                                1,493,301 Tesco                                   3,763,119               1.43
                                                                                  6,473,315               2.46
                                          Food Processors
                                   85,304 Associated British Foods                  439,316               0.17
                                  442,942 Cadbury Schweppes                       2,130,551               0.81
                                  627,071 Unilever                                3,674,636               1.40
                                                                                  6,244,503               2.38
                                          Gas Distribution
                                  909,405 Centrica                                1,927,939               0.74
                                  755,027 Lattice Group                           1,277,883               0.49
                                                                                  3,205,822               1.23



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                                Nominal   Investment                                Value £               2002
                                                                                                    % of total
                                                                                                    net assets
                                          UNITED KINGDOM (Continued)
                                          Hotels

                                  339,782 Hilton Group                              757,714               0.29
                                                                                    757,714               0.29
                                          Household Products
                                  135,280 Reckitt Benckiser                       1,513,783               0.58
                                                                                  1,513,783               0.58
                                          Insurance Non-Life
                                  308,473 Royal & Sun Alliance                      805,115               0.31
                                                                                    805,115               0.31
                                          Life Assurance
                                  484,467 CGNU                                    3,476,051               1.33
                                1,108,522 Legal & General Group                   1,662,783               0.63
                                  368,447 Friends Provident                         644,782               0.24
                                  806,245 Old Mutual                                757,870               0.29
                                  426,520 Prudential                              2,797,971               1.07
                                                                                  9,157,457               3.56
                                          Media Agencies
                                  247,857 WPP Group                               1,844,056               0.70
                                                                                  1,844,056               0.70
                                          Medical Products & Supplies
                                  138,206 Amersham                                  989,555               0.38
                                  197,492 Smith & Nephew                            841,810               0.32
                                                                                  1,831,365               0.70
                                          Mining Finance
                                  316,106 Anglo American                          3,796,433               1.45
                                                                                  3,796,433               1.45
                                          Oil - Integrated
                                  755,027 BG Group                                2,208,454               0.84
                                4,119,203 BP                                     23,994,357               9.15
                                  104,118 Enterprise Oil                            645,532               0.24
                                2,119,447 Shell Transport & Trading              10,427,679               3.98
                                          Company
                                                                                 37,276,022              14.21
                                          Other Financial
                                   57,352 Man Group                                 594,740               0.23
                                                                                    594,740               0.23
                                          Other Mineral Extractors &
                                          Mines
                                  499,546 Billiton                                1,998,184               0.76
                                  229,280 Rio Tinto                               3,260,362               1.24
                                                                                  5,258,546               2.00



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                                 Nominal  Investment                                Value £               2002
                                                                                                    % of total
                                                                                                    net assets
                                          UNITED KINGDOM (Continued)
                                          Pharmaceuticals

                                  376,578 AstraZeneca                            13,466,429               5.13
                                   58,808 Celltech Group                            408,716               0.16
                                1,989,774 GlaxoSmithKline Linked Notes            1,905,806               0.73
                                          (Deutsche) 26/09/2003
                                1,228,903 GlaxoSmithKline                        21,186,288               8.08
                                  103,362 Shire Pharma Group                        537,482               0.20
                                                                                 37,504,721              14.30
                                          Publishing
                                   61,555 Daily Mail & General Trust                416,727               0.16
                                          Series 'A'
                                  169,747 EMI Group                                 525,791               0.20
                                  171,470 Pearson                                 1,337,466               0.51
                                  271,625 Reed International                      1,720,744               0.66
                                  307,612 Reuters Group                           1,611,887               0.61
                                                                                  5,612,615               2.14
                                          Real Estate Holding &
                                          Development
                                  111,606 British Land Company                      578,678               0.22
                                  140,018 Canary Wharf Group                        638,832               0.24
                                  112,446 Land Securities                           989,525               0.38
                                                                                  2,207,035               0.84
                                          Retailers - Hardline
                                  416,782 Dixons Group                              998,193               0.38
                                                                                    998,193               0.38
                                          Retailers - Multi Department
                                  193,873 Boots Company                           1,237,879               0.47
                                  216,707 Great Universal Stores                  1,495,278               0.57
                                  277,970 Kingfisher                              1,053,506               0.40

                                          (Post demerger &
                                          consolidation)
                                  619,316 Marks & Spencers                        2,328,628               0.89
                                                                                  6,115,291               2.33
                                          Retailers - Soft Goods
                                   71,234 NEXT                                      677,792               0.26
                                                                                    677,792               0.26



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                                 Nominal  Investment                                Value £               2002
                                                                                                    % of total
                                                                                                    net assets
                                          UNITED KINGDOM (Continued)
                                          Semiconductors

                                  217,945 Arm Holdings                              616,784               0.24
                                                                                    616,784               0.24
                                          Shipping
                                  149,194 P&O Princess Cruises                      611,695               0.23
                                                                                    611,695               0.23
                                          Telecommunication Services
                                1,867,650 Mmo2                                    1,232,649               0.47
                                                                                  1,232,649               0.47
                                          Tobaccos
                                  351,879 British American Tobacco                2,283,695               0.87
                                  139,840 Gallaher Group                            695,354               0.27
                                  112,231 Imperial Tobacco                        1,051,604               0.40
                                                                                  4,030,653               1.54
                                          Venture & Development Capital
                                  130,541 3i Group                                  894,206               0.34
                                                                                    894,206               0.34
                                          Water
                                  119,754 United Utilities                          722,715               0.27
                                   73,758 Severn Trent                              541,015               0.21
                                                                                  1,263,730               0.48
                                          Wireless
                               12,280,777 Vodafone Group                         16,425,539               6.26
                                8,247,834 0% Vodafone Convertible                 3,135,826               1.20
                                          (Deutsche) 07/03/2002
                                                                                 19,561,365               7.46
                                          Financial Futures
                                        3 FTSE 100 Index Mar 02                     (1,195)               0.00
                                                                                    (1,195)               0.00


Total value of Investments                                                      260,889,028              99.47
Other net assets                                                                    914,877               0.35
Cash*                                                                               470,967               0.18
Total value of Fund                                                             262,274,872             100.00

*All cash holdings are held with the Governor of the Bank of Ireland

Portfolio changes

Please note that portfolio changes may include primary market creation or
redemption activity.

Largest sales                                                                                        Proceeds £

BP                                                                                                      698,762
Energis                                                                                                 198,800
Vodafone Group                                                                                          173,906
GKN (New)                                                                                               157,374
Dimension Data Holdings                                                                                 149,182
GlaxoSmithKline                                                                                         126,837
British Sky Broadcasting Group                                                                           92,374
Colt Telecom Group                                                                                       80,535
United Business Media                                                                                    67,611
Blue Circle Industries                                                                                   61,559
Cable & Wireless                                                                                         61,406
Imperial Chemical Industries                                                                             57,474
British American Tobacco                                                                                 55,330
Sainsbury (J)                                                                                            48,900
Associated British Foods                                                                                 39,130
Shell Transport & Trading Company                                                                        35,369
Exel                                                                                                     25,444
HSBC Holdings                                                                                            23,906
Anglo American                                                                                           19,785
Astrazeneca                                                                                               8,345

Largest sales                                                                                            Cost £

Vodafone Group                                                                                        9,270,331
BP                                                                                                    2,989,697
Shell Transport & Trading Company                                                                     1,303,089
HSBC Holdings                                                                                         1,243,545
Mmo2                                                                                                  1,136,179
Tesco                                                                                                   917,077
GlaxoSmithKline                                                                                         823,048
Lloyds TSB Group                                                                                        741,374
Diageo                                                                                                  449,953
HBOS                                                                                                    425,647
Royal Bank of Scotland Group                                                                            389,393
Unilever                                                                                                385,128
CGNU                                                                                                    297,554
Compass Group                                                                                           292,942
Prudential                                                                                              261,957
Astrazeneca                                                                                             233,630
Barclays                                                                                                219,221
Abbey National                                                                                          192,053
Anglo American                                                                                          181,693
Rio Tinto                                                                                               141,069





Notes to the financial statements for the year ended 28 February 2002

1. Accounting policies

See page 17

2. Income
                                                                                              2002        2001
                                                                                             £000s       £000s

Dividends                                                                                    4,785       1,948
Withholding tax                                                                              (462)       (190)
Equalisation income                                                                            579          90
Bank interest                                                                                   50          48
Income                                                                                       4,952       1,896


3. Expenses
                                                                                              2002        2001
                                                                                             £000s       £000s

Management fees                                                                                463         196
Custody fees                                                                                   133          78
Transaction fees                                                                                 9          18
Depository fees                                                                                 26          13
Audit fee                                                                                        5          10
Directors' fee                                                                                   6          10
Directors' & Officers insurance                                                                  4          12
Printing fees                                                                                    1           -
FT fees                                                                                         53           9
Listing fees                                                                                     4           3
Share registration fees                                                                         24           4
Sundry fees                                                                                      1           -
Other costs                                                                                     53          57
In specie transactions charges                                                                  23          10
Refund of in specie transactions charges                                                      (23)        (10)
Fee rebate from manager                                                                       (52)        (62)
Expenses                                                                                       730         348


4. Dividends

Dividends will normally be declared quarterly with a view to their being paid on
or about 15 of March, June, September, and December of each year. The Directors
intend to maintain a dividend policy that enables the Company to qualify each
financial year as a distributing fund under chapter V of part XVII of the Income
and Corporation Taxes Act 1988, of the United Kingdom.
                                                                                            2002          2001
                                                 EX date           Pay date                £000s         £000s
1st iFTSE 100 distribution                      30.05.01           15.06.01                1,012             -
2nd iFTSE 100 distribution                      31.08.01           15.09.01                  762           650
3rd iFTSE 100 distribution                      30.11.01           15.12.01                1,225           233
4th iFTSE 100 distribution                      28.02.02           15.03.02                  201           235
Total distribution                                                                         3,200         1,547

Notes to the accounts (continued)

4. Dividends (continued)

The Company intends to make the following distribution:

                                                                                                           2002
                                                                                Pay date                  £000s

iFTSE 100 distribution                                                          15.06.02                  1,019


5. Debtors
                                                                                         2002             2001
                                                                                        £000s            £000s

Accrued income                                                                          1,359              582
Withholding tax                                                                         (132)             (56)
Accrued interest                                                                            -                6
Intra fund transfer                                                                        44               44
Sales awaiting settlement                                                                 194                -
Directors fees prepaid                                                                      -                3
Fee rebate from Manager                                                                    46               15
Debtors                                                                                 1,511              594


6. Creditors - amounts falling due within one year
                                                                                         2001             2002
                                                                                        £000s            £000s

Establishment costs                                                                       278              256
Accrued expenses                                                                          110               44
Purchases awaiting settlement                                                             176               16
Creditors                                                                                 564              316


7. Share capital

Participating shares - issued and fully paid
                                                                                       2002               2001
                                                                          No of shares 000s  No of shares 000s

Balance at the beginning of the year                                                 12,500                  -
Issued during the year                                                               38,721             12,500
Redeemed during the year                                                                (1)                  -
Balance at the end of the year                                                       51,220             12,500


The issued and fully paid participating share capital is at all times equal to
the net asset value of the Fund.

8. Financial assets and liabilities

The Company enters into FTSE 100 future contracts, for the purpose of efficient
portfolio management. These derivatives will normally be traded on a recognised
market. The Company held 3 FTSE100 open futures contracts at the year end,
expiry date March 2002. At the year end, these futures had an unrealised loss of
£1,195.


IFTSE TMT FUND

Statement of operations

For the year ended 28 February 2002
                                                                  Notes     2002              2001
                                                                            £000s             £000s

Realised gains / (losses) on investments                                   (5,057)          (281)
Net change in unrealised gains / (losses) on investments                   (4,511)          (5,785)
     Income                                                         2      169              47
     Expenses                                                       3      (67)             (43)
Net income                                                                 102              4

Decrease in net assets resulting from operations                           (9,466)          (6,062)



Statement of changes in net assets

For the year ended 28 February 2002
                                                                Notes     2002              2001
                                                                          £000s             £000s

Net assets at beginning of the period                                     17,707            -
Decrease in net assets resulting from operations                          (9,466)           (6,062)

Capital transactions                                              
Value of assets received on share creation                        7       1,752             23,769
Value of assets transferred on share redemption                   7       -                 -

Net assets at the end of the year                                         9,993             17,707



Statement of net assets

As at 28 February 2002
                                                             Notes        2002              2001
                                                                          £000s             £000s

Current assets                                                            
     Investments                                                          9,878             17,692
     Debtors                                                      5       72                74 
     Cash and bank balances                                               81                9
     Other assets                                                         6                 29
                                                                          10,037            17,775  
                                                                                          
Current liabilities (amounts falling due within 1 Year)          
     Creditors                                                    6      (44)              (68)        
                                                                         (44)              (68)

Total net assets                                                         9,993             17,707
Shareholders' equity                                                     9,993,065         17,706,758
Shares in issue                                                   7      1,820,000         1,540,000
Net asset value per share                                                £5.49             £11.50



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                      Nominal  Investment                                            Value £              2002
                                                                                                    % of total
                                                                                                    net assets
                               UNITED KINGDOM
                               Broadcasting Contractors
                       184,036 Carlton Communications                                388,316              3.89
                       383,982 Granada                                               441,579              4.42
                                                                                     829,895              8.31
                               Cable & Satellite
                        61,174 British Sky Broadcasting Group                        439,229              4.40

                                                                                     439,229              4.40
                               Computer Services
                       140,618 Autonomy Corporation                                  458,766              4.59
                       147,353 CMG                                                   355,858              3.56
                       417,305 Dimension Data Holdings                               267,075              2.67
                        58,543 Logica                                                225,391              2.26

                                                                                   1,307,090             13.08
                               Computer Software
                       144,949 Misys                                                 379,042              3.80
                       202,525 Sage Group                                            419,733              4.20
                                                                                     798,775              8.00
                               Fixed Telecommunications
                       100,903 British Telecom Group                                 258,059              2.58
                       123,880 Cable & Wireless                                      272,536              2.73
                       468,233 Colt Telecom Group                                    198,999              1.99
                       604,178 Energis                                                21,146              0.21
                       431,714 Kingston Communications                               356,164              3.56
                       943,503 Telewest Communications                               167,472              1.68
                                                                                   1,274,376             12.75
                               Media Agencies
                       377,401 Aegis Group                                           390,610              3.91
                        75,684 WPP Group                                             563,089              5.63
                                                                                     953,699              9.54
                               Publishing
                        66,045 Daily Mail & General Trust Series 'A'                 447,125              4.47
                               Non-Voting
                        60,664 EMAP                                                  412,515              4.13
                       103,995 EMI Group                                             322,125              3.22
                        51,285 Pearson                                               400,023              4.00
                        72,135 Reed International                                    456,975              4.57
                        68,318 Reuters Group                                         357,986              3.58
                        76,006 United Business Media                                 444,635              4.45
                                                                                   2,841,384             28.42

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal  Investment                                            Value £               2002
                                                                                                    % of total
                                                                                                    net assets
                              UNITED KINGDOM (Continued)
                              Semiconductors
                      147,561 Arm Holdings                                          417,598               4.18
                                                                                    417,598               4.18
                              Telecommunications
                    1,147,004 Marconi                                               200,726               2.01
                      307,072 Spirent                                               394,588               3.95
                                                                                    595,314               5.96
                              Telecommunication Services
                      100,903 Mmo2                                                   66,596               0.67
                                                                                     66,596               0.67
                              Wireless
                      264,582 Vodafone Group                                        353,878               3.54
                                                                                    353,878               3.54




Total value of Investments                                                        9,877,834              98.85
Other net assets                                                                     33,992               0.34
Cash*                                                                                81,239               0.81
Total value of Fund                                                               9,993,065             100.00

*All cash holdings are held with the Governor of the Bank of Ireland

Portfolio changes

Please note that portfolio changes may include primary market creation or
redemption activity.

Largest sales                                                                                      Proceeds £

Thus                                                                                                  474,119
Vodafone Group                                                                                        177,761
Psion                                                                                                 171,868
Kewill Systems                                                                                         98,210
Mmo2                                                                                                   91,850
United Business Media 'B' shs (Unlisted Deferred Shares)                                               88,969
Granada                                                                                                68,075
Sema Group                                                                                             60,509
EMI Group                                                                                              52,694
Reed International                                                                                     51,183
Sage Group                                                                                             46,893
Bookham Technology                                                                                     44,424
WPP Group                                                                                              40,266
Arm Holdings                                                                                           37,116
British Sky Broadcasting Group                                                                         33,430
Marconi                                                                                                27,747
Reuters Group                                                                                          19,512
Cable & Wireless                                                                                       16,465
Pearson                                                                                                10,374
Spirent                                                                                                 8,672

Largest purchases                                                                                      Cost £

Marconi                                                                                             1,045,586
Telewest Communications                                                                               701,071
Energis                                                                                               459,819
Dimension Data Holdings                                                                               287,246
Kingston Communications                                                                               279,396
Colt Telecom Group                                                                                    246,563
Spirent                                                                                               179,456
Autonomy Corporation                                                                                  143,785
Aegis Group                                                                                           124,218
Carlton Communications                                                                                123,915
Misys                                                                                                  97,340
Granada                                                                                                76,343
Vodafone Group                                                                                         75,431
CMG                                                                                                    75,067
Cable & Wireless                                                                                       43,707
Daily Mail & General Trust Series 'A'                                                                  27,248
EMAP                                                                                                   23,091
Logica                                                                                                 18,531
WPP Group                                                                                              17,880
British Sky Broadcasting Group                                                                         14,768



Notes to the financial statements for the year ended 28 February 2002

1. Accounting policies

See page 17

2. Income
                                                                                           2002           2001
                                                                                          £000s          £000s

Dividends                                                                                   170             52
Withholding tax                                                                            (17)            (5)
Equalisation income                                                                          15              -
Bank interest                                                                                 1              -
Income                                                                                      169             47

3. Expenses
                                                                                           2002           2001
                                                                                          £000s          £000s

Management fees                                                                              41             22
Custody fees                                                                                 11              7
Transaction fees                                                                              7              8
Depository fees                                                                               2              1
Audit fee                                                                                     4              8
Directors' fee                                                                                3              4
Directors' & Officers insurance                                                               4              -
Printing fees                                                                                 1              -
FT fees                                                                                       4              5
Listing fees                                                                                  6              3
Share registration fees                                                                       5              -
Other costs                                                                                   2             15
In specie transactions charges                                                                1              2
Refund of in specie transactions charges                                                    (1)            (2)
Fee rebate from manager                                                                    (23)           (30)
Expenses                                                                                     67             43

4. Dividends

Dividends will normally be declared annually with a view to their being paid on
or about 15 June of each year.The Directors intend to maintain a dividend policy
that enables the company to qualify each financial year as a distributing fund
under Chapter V of part XVII of the Income and Compensation Taxes Act 1988, of
the United Kingdom.

The Company intends to make the following distribution:
                                                                                                           2002
                                                                                    Pay date              £000s

iFTSE TMT distribution                                                              15.06.02                106



5. Debtors
                                                                                            2002          2001
                                                                                           £000s         £000s

Accrued income                                                                                25            17
Withholding tax                                                                              (3)           (2)
Sundry Receivable                                                                             15             -
Sales awaiting settlement                                                                      4             -
Fee rebate from Manager                                                                       31            30
Debtors                                                                                       72            45

6. Creditors - amounts falling due within one year
                                                                                            2002           2001
                                                                                           £000s          £000s

Establishment costs                                                                           23             44
Accrued expenses                                                                              14             17
Intra-Fund transfer                                                                            7              7
Creditors                                                                                     44             68

7. Share capital

Participating shares - issued and fully paid
                                                                                    2002                   2001
                                                                       No of shares 000s      No of shares 000s

Balance at the beginning of the year                                               1,540                      -
Issued during the year                                                               280                  1,540
Redeemed during the year                                                               -                      -
Balance at the end of the year                                                     1,820                  1,540


The issued and fully paid participating share capital is at all times equal to
the net asset value of the Fund.



ISHARES FTSE EURO 100 FUND


Statement of operations

For the year ended 28 February 2002
                                                                 Notes          2002         2002        2001
                                                                               €000s        £000s        £000s

Realised gains/ (losses) on investments                                       (1,755)      (1,074)           2
Net change in unrealised gains/ (losses) on investments                       (3,428)      (2,096)       (480)
Currency loss                                                                     (9)          (6)       (150)
     Income                                                        2              520          318          11
     Expenses                                                      3            (193)        (118)        (22)
     Net income/(deficit)                                                         327          200        (11)
Dividends                                                          4            (337)        (206)           -
Decrease in net assets resulting from operations                              (5,202)      (3,182)       (639)



Statement of changes in net assets

For the year ended 28 February 2002


                                                               Notes            2002         2002        2001
                                                                               €000s        £000s        £000s

Net assets at beginning of the period                                         29,138       18,579           -
Notional exchange difference                                                       -        (759)           -
Decrease in net assets resulting from operations                             (5,202)      (3,182)       (639)

Capital transactions                                             
Value of assets received on share creation                       7            39,055       23,884      19,217
Value of assets transferred on share redemption                  7                 -            -           -

Net assets at the end of the year                                             62,991       38,522      18,579



Statement of net assets

As at 28 February 2002
                                                   Notes              2002            2002            2001
                                                                      €000s           £000s           £000s

Current assets                                                        
     Investments                                                      63,012          38,535          18,577   
     Debtors                                         5                   105              63              21     
     Cash and bank balances                                                -               -              13
     Other assets                                                         40              25              81  
                                                                       63,157          38,623         18,642

Current liabilities (amounts falling due
within 1 year)
Creditors                                            6                  (161)            (98)           (64)
     Cash and bank balances                                               (5)             (3)              -
                                                                        (166)           (101)           (64)

                                                                        

Total net assets                                                       62,991          38,522           18,578
Shareholders' equity                                               62,991,245      38,522,038       18,577,920
Shares in issue                                      7              5,891,769       5,891,769        1,000,000
Net asset value per share                                              €10.69           £6.54           £18.58

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                                 Nominal  Investment                                 Value €              2002
                                                                                                    % of total
                                                                                                    net assets
                                           BELGIUM
                                           Banks
                                    24,094 Dexia NPV                                 417,308              0.66
                                    17,808 Fortis NPV                                456,775              0.73
                                     2,464 KBC Bankverzekerin NPV                     87,669              0.14
                                                                                     961,752              1.53
                                           Beverages - Brewers
                                     4,707 Interbrew NPV                             147,094              0.23
                                                                                     147,094              0.23
                                           Electricity
                                     1,125 Electrabel SA NPV                         257,963              0.41
                                                                                     257,963              0.41

                                           BELGIUM - TOTAL                         1,366,809              2.17

                                           FINLAND
                                           Forestry
                                     7,156 UPM-Kymmene OJY NPV                       294,112              0.47
                                                                                     294,112              0.47
                                           Telecoms Equipment
                                   130,437 Nokia AB OJY                            3,204,837              5.09
                                                                                   3,204,837              5.09

                                           FINLAND - TOTAL                         3,498,949              5.56

                                           FRANCE
                                     8,889 Aerospace
                                           European Aeronautic Defense               129,513              0.21
                                                                                     129,513              0.21
                                           Automobiles
                                     5,261 Peugeot SA                                264,628              0.42
                                     3,298 Renault                                   165,725              0.26
                                                                                     430,353              0.68
                                           Banks
                                    24,411 BNP Paribas                             1,368,236              2.17
                                     7,113 Credit Lyonnais SA NPV                    271,717              0.43
                                    11,646 Societe Generale De France                796,586              1.26
                                                                                   2,436,539              3.86

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing
                     Nominal  Investment                                             Value €             2002
                                                                                                   % of total
                                                                                                   net assets
                              FRANCE (Continued)
                              Building & Construction Materials
                        2,347 CIE De St-Gobain                                      421,287               0.67
                        3,580 Lafarge                                               356,210               0.57
                                                                                    777,497               1.24
                              Cable & Satellite
                       30,005 Vivendi Universal                                   1,346,624               2.14
                                                                                  1,346,624               2.14
                              Chemicals - Commodity
                        2,517 Air Liquide                                           411,026               0.65
                                                                                    411,026               0.65
                              Computer Services
                        3,414 Cap Gemini Sogeti                                     261,683               0.42
                                                                                    261,683               0.42
                              Diversified Industrials
                       27,982 Suez                                                  901,020               1.43
                                                                                    901,020               1.43
                              Electrical Equipment
                        6,612 Schneider Electric                                    383,496               0.61
                                                                                    383,496               0.61
                              Fixed Line Telecom Services
                        9,530 France Telecom                                        290,189               0.46
                                                                                    290,189               0.46
                              Food & Drug Retailers
                       19,580 Carrefour                                           1,022,076               1.62
                                                                                  1,022,076               1.62
                              Food Processors
                        3,883 Danone                                                516,439               0.82
                                                                                    516,439               0.82
                              Home Entertainment
                        2,917 Thomson Multimedia                                     87,481               0.14
                                                                                     87,481               0.14
                              Hotels
                        5,461 Accor                                                 231,819               0.37
                                                                                    231,819               0.37




Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                      Nominal Investment                                            Value €              2002
                                                                                                   % of total
                                                                                                   net assets
                              FRANCE (Continued)
                              Oil - Integrated
                       19,413 Total Fina Elf                                      3,298,268               5.24
                                                                                  3,298,268               5.24
                              Other Construction
                        7,068 Bouygues                                              233,244               0.37
                                                                                    233,244               0.37
                              Other Insurance
                        1,523 Assurance Generale De France                           83,613               0.13
                       47,244 AXA                                                 1,018,108               1.62
                                                                                    1101721               1.75
                              Other Textiles & Leather Goods
                       10,115 LVMH Moet-Hennessy                                    546,210               0.87
                                                                                    546,210               0.87
                              Personal Products
                        9,307 L'Oreal SA                                            752,006               1.19
                                                                                    752,006               1.19
                              Pharmaceuticals
                       21,906 Aventis SA                                          1,878,440               2.98
                       10,067 Sanofi-Synthelabo                                     764,085               1.21
                                                                                  2,642,525               4.19
                              Retailers Hardlines
                        2,153 Castorama Dubois                                      122,721               0.19
                                                                                    122,721               0.19
                              Retailers Multi Department
                        2,527 Pinault-Printemps Redoute                             305,514               0.49
                                                                                    305,514               0.49
                              Semiconductors
                       18,307 Stmicroelectronics                                    627,381               1.00
                                                                                    627,381               1.00
                              Telecoms Equipment
                       33,335 Alcatel Series 'A'                                    535,027               0.85
                                                                                    535,027               0.85
                              Water
                        3,812 Vivendi Environment                                   139,138               0.22
                                                                                    139,138               0.22

                              FRANCE - TOTAL                                     19,529,510              31.01

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                      Nominal  Investment                                           Value €               2002
                                                                                                    % of total
                                                                                                    net assets
                              GERMANY
                              Automobiles

                        8,566 Bayerische Motoren Werke                              380,260               0.60
                       27,623 Daimlerchrysler AG NPV                              1,281,983               2.04
                        8,796 Volkswagen AG NPV                                     486,771               0.77
                                                                                  2,149,014               3.41
                              Banks
                       10,757 Bayerische Hypo-Vereinsbank NPV                       364,912               0.58
                       11,188 Commerzbank AG NPV                                    213,131               0.34
                       17,113 Deutsche Bank AG NPV                                1,161,973               1.84
                                                                                  1,740,016               2.76
                              Chemicals - Commodity
                       16,063 BASF AG NPV                                           713,518               1.13
                       20,108 Bayer AG NPV                                          740,980               1.18
                                                                                  1,454,498               2.31
                              Diversified Industrials
                       19,053 E.On AG NPV                                         1,081,639               1.72
                       10,965 RWE AG (New) Series 'A' NPV                           455,376               0.72
                                                                                  1,537,015               2.44
                              Electrical Equipment
                       24,564 Siemens AG NPV                                      1,662,983               2.64
                                                                                  1,662,983               2.64
                              Engineering - General
                       10,624 Thyssenkrupp AG NPV                                   184,326               0.29
                                                                                    184,326               0.29
                              Fixed Line Telecom Services
                       86,681 Deutsche Telekom NPV                                1,423,302               2.26
                                                                                  1,423,302               2.26
                              Other Insurance
                        5,487 Allianz AG NPV                                      1,426,456               2.26
                                                                                  1,426,456               2.26
                              Personal Products
                          925 Beiersdorf AG Series 'A B C' NPV                      117,105               0.19
                                                                                    117,105               0.19
                              Pharmaceuticals
                        5,629 Schering AG NPV                                       388,795               0.62
                                                                                    388,795               0.62

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                                Nominal Investment                                  Value €              2002
                                                                                                   % of total
                                                                                                   net assets
                                        GERMANY (Continued)
                                        Reinsurance
                                  2,436 Muenchener Rueckversicherung NPV            686,952               1.09
                                                                                    686,952               1.09
                                        Retailers Multi Department
                                  4,178 Metro AG NPV                                160,811               0.26
                                                                                    160,811               0.26
                                        Semiconductors
                                  9,540 Infineon Technologies AG                    252,715               0.40
                                        NPV
                                                                                    252,715               0.40
                                        Software
                                  6,520 SAP AG NPV                                1,024,422               1.63
                                                                                  1,024,422               1.63
                                        GERMANY - TOTAL                          14,208,410              22.56

                                        IRELAND
                                        Banks
                                 24,376 Allied Irish Bank plc                       314,450               0.50
                                 27,734 Bank of Ireland (Governor & Company of)     310,621               0.49
                                                                                    625,071               0.99
                                        Building & Construction
                                        Materials
                                 14,349 CRH                                         276,218               0.44
                                                                                    276,218               0.44
                                        Pharmaceuticals
                                  9,360 Elan Corporation                            149,760               0.24
                                                                                    149,760               0.24
                                        IRELAND - TOTAL                           1,051,049               1.67


                                        ITALY
                                        Asset Managers
                                  7,502 Banca Fideuram SPA                           58,291               0.09
                                                                                     58,291               0.09
                                        Automobiles
                                  8,941 Fiat SPA                                    130,986               0.21
                                                                                    130,986               0.21

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                         Nominal Investment                                    Value €                   2002
                                                                                                   % of total
                                                                                                   net assets
                                 ITALY (Continued)
                                 Banks
                         120,327 Banca Intesa Di Risp SPA                      323,680                    0.51
                           4,007 Rolo Banca 1473 SPA                            70,804                    0.11
                          28,980 San Paolo IMI SPA                             340,225                    0.54
                         103,299 Unicredito Italiano SPA                       464,846                    0.74
                                                                             1,199,555                    1.90
                                 Broadcasting Contractors
                          16,261 Mediaset                                      151,715                    0.24
                                                                               151,715                    0.24
                                 Electricity
                          66,773 Enel                                          432,020                    0.69
                                                                               432,020                    0.69
                                 Fixed Line Telecom Services
                         181,335 Olivetti SPA                                  247,704                    0.39
                          72,411 Telecom Italia                                688,628                    1.09
                                                                               936,332                    1.48
                                 Oil - Integrated
                          82,620 ENI SPA                                     1,308,701                    2.08
                                                                             1,308,701                    2.08
                                 Other Insurance
                          35,112 Assicurazioni Generali SPA                  1,005,256                    1.60
                           9,895 RAS                                           133,583                    0.21
                                                                             1,138,839                    1.81
                                 Publishing & Printing
                         153,815 Seat Pagine Gialle                            134,742                    0.21
                                                                               134,742                    0.21
                                 Wireless Telecoms Services
                         116,100 Telecom Italia Mobile SPA                     631,584                    1.00
                                                                               631,584                    1.00
                                 ITALY - TOTAL                               6,122,765                    9.71

                                 NETHERLANDS

                                 Banks
                          42,463 ABN-Amro Holdings NV                          854,780                    1.36
                          17,808 Fortis (NI) NPV                               457,488                    0.73
                                                                             1,312,268                    2.09

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                         Nominal Investment                                    Value €                    2002
                                                                                                    % of total
                                                                                                    net assets
                                 NETHERLANDS (Continued)
                                 Beverages - Brewers
                           5,396 Heineken NV                                   254,098                    0.40
                                                                               254,098                    0.40
                                 Business Support Services
                           9,862 TPG NV                                        234,518                    0.37
                                                                               234,518                    0.37
                                 Chemicals - Commodity
                           7,872 Akzo Nobel NV                                 401,472                    0.64
                                                                               401,472                    0.64
                                 Electronic Equipment
                          36,235 Philips Electronic (KON)                    1,094,297                    1.74
                                                                             1,094,297                    1.74
                                 Fixed Line Telecom Services
                          46,547 Koninklijke KPN NV                            256,939                    0.41
                                                                               256,939                    0.41
                                 Food & Drug Retailers
                          24,729 Ahold (KON) NV                                659,028                    1.05
                                                                               659,028                    1.05
                                 Food Processors
                          15,737 Unilever NV CVA                             1,057,526                    1.68
                                                                             1,057,526                    1.68
                                 Life Assurance
                          29,369 Aegon NV                                      738,924                    1.17
                                                                               738,924                    1.17
                                 Oil - Integrated
                          57,830 Royal Dutch Petroleum                       3,449,560                    5.47
                                                                             3,449,560                    5.47
                                 Other Insurance
                          53,825 ING Groep NV CVA                            1,479,649                    2.35
                                                                             1,479,649                    2.35
                                 Publishing & Printing
                          20,238 Elsevier NV                                   299,522                    0.47
                           6,482 VNU NV                                        221,684                    0.35
                                                                               521,206                    0.82
                                 Semiconductors
                          12,795 ASM Lithography Holding                       303,242                    0.48
                                                                               303,242                    0.48
                                 NETHERLANDS - TOTAL                        11,762,727                   18.67


Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                         Nominal Investment                                    Value €                    2002
                                                                                                    % of total
                                                                                                    net assets
                                 SPAIN

                                 Banks
                          87,990 Banco Bilbao Vizcaya Argentaria             1,173,787                    1.86
                         128,284 Banco Santander Central Hispano             1,182,778                    1.88
                                                                             2,356,565                    3.74
                                 Electricity
                          29,150 Endesa SA                                     505,461                    0.80
                          24,822 Iberdrola SA                                  361,160                    0.57
                                                                               866,621                    1.37
                                 Fixed Line Telecom Services
                         131,203 Telefonica SA                               1,768,617                    2.81
                                                                             1,768,617                    2.81
                                 Oil - Integrated
                          33,604 Repsol Ypf SA                                 480,201                    0.76
                                                                               480,201                    0.76
                                 SPAIN - TOTAL                               5,472,004                    8.68


Total value of Investments                                                  63,012,223                  100.03
Other net liabilities                                                         (15,675)                   (0.01)
Cash*                                                                          (5,303)                   (0.02)
Total value of Fund                                                         62,991,245                  100.00

*All cash holdings are held with the Governor of the Bank of Ireland



Portfolio changes

Please note that portfolio changes may include primary market creation or
redemption activity.

Largest sales                                                                                      Proceeds €

Ericsson (LM) Telecommunications Series 'B'                                                            65,435
Telecom Italia Mobile Di Risp SPA                                                                      32,264
Nordic Baltic Nordea                                                                                   26,418
Novartis AG                                                                                            25,922
Telecom Italia SPA I                                                                                   20,128
UBS AG                                                                                                 11,807
ABB                                                                                                    10,715
Danske Bank A/S                                                                                         6,809
Roche Holding AG Genusscheine NPV                                                                       6,298
Nestle AG                                                                                               3,527
Sanofi-Synthelabo                                                                                       2,815
Credit Suisse Group                                                                                     2,708
L'Oreal SA                                                                                              2,603
Novo-Nordisk A/S Series 'B'                                                                             2,600
E.On AG NPV                                                                                             2,273
Allianz AG NPV                                                                                            778
Zurich Financial Services                                                                                 753
Muenchener Rueckversicherung AG NPV                                                                       685
Swiss Reinsurance                                                                                         129
Richemont (CIE Fin) Series 'A' (Bearer)                                                                    46

Largest purchases                                                                                      Cost €

Nokia AB Ojy                                                                                           94,411
Telefonica SA                                                                                          93,836
Banco Santander Central Hispano                                                                        93,649
Deutsche Telekom NPV                                                                                   77,049
Banco Bilbao Vizcaya Argentaria                                                                        63,483
Royal Dutch Petroleum                                                                                  42,530
ING Groep NV CVA                                                                                       37,976
AXA                                                                                                    34,374
Philips Electronic (KON)                                                                               26,097
Assicurazioni Generali SPA                                                                             25,450
Vivendi Universal                                                                                      21,868
Daimlerchrysler AG NPV                                                                                 20,122
Siemens AG NPV                                                                                         17,703
Aventis SA                                                                                             15,893
E.On AG NPV                                                                                            15,126
Total Fina Elf                                                                                         14,225
Carrefour                                                                                              14,223
Deutsche Bank AG NPV                                                                                   12,401
BNP Paribas                                                                                             8,896
Allianz AG NPV                                                                                          3,785


Notes to the financial statements for the year ended 28 February 2002

1. Accounting policies

See page 17

2. Income
                                                                           2002           2002            2001
                                                                          €000s          £000s           £000s

Dividends                                                                   531            325              12
Withholding tax                                                           (135)            (83             (1)
Equalisation income                                                         120             73               -
Bank interest                                                                 4              3               -
Income                                                                      520            318              11

3. Expenses
                                                                           2002           2002           2001
                                                                          €000s          £000s          £000s

Management fees                                                              60             36              9
Custody fees                                                                 39             24              5
Transaction fees                                                             69             42              3
Depository fees                                                               5              3              1
Audit fee                                                                     7              5              8
Directors' fees                                                               6              3              4
Directors' & Officers insurance                                               6              4              -
Printing fees                                                                 2              1              -
FT fees                                                                      16             10              2
Listing fees                                                                 11              6              3
Share registration fee                                                       10              6              -
Other costs                                                                  12              8              7
In specie transactions charges                                               36             22              5
Refund of in specie transaction charges                                    (36)           (22)            (5)
Fee rebate from manager                                                    (50)           (30)           (20)
Expenses                                                                    193            118             22

4. Dividends

Dividends will normally be declared semi annually with a view to their being
paid on or about 15 June and December of each year. The Directors intend to
maintain a dividend policy that enables the Company to qualify each financial
year as a distributing fund under chapter V of part XVII of the Income and
Corporation Taxes Act 1988, of the United Kingdom.
                                                                             2002          2002          2001
                                         Ex date        Pay date            €000s         £000s         £000s

1st iFTSE Euro 100 distribution          30.11.01       15.12.01              337           206             -
Total distribution                                                            337           206             -


The Company intends to make the following distribution:
                                                                                            2002           2002
                                                                      Pay date             €000s          £000s
iFTSE Euro 100 distribution                                           15.06.02                22             13

Notes to the financial statements (continued)

5. Debtors
                                                                           2002           2002           2001
                                                                          €000s          £000s          £000s

Accrued income                                                                7              3              -
Withholding Tax                                                             (1)
Sales awaiting settlement                                                    47             29              1
Fee rebate from Manager                                                      52             31             20
Debtors                                                                     105             63             21

6. Creditors - amounts falling due within one year
                                                                           2002           2002           2001
                                                                          €000s          £000s          £000s

Establishment costs                                                          64             39             38
Accrued expenses                                                             50             30             16
Intra-Fund transfer                                                          11              7              7
Purchases awaiting settlement                                                36             22              3
Creditors                                                                   161             98             64

7. Share capital

Participating shares - issued and fully paid
                                                                                    2002                 2001
                                                                       No of shares 000s    No of shares 000s

Balance at the beginning of the year                                               1,000                    -
Issued during the year                                                             4,892                1,000
Redeemed during the year                                                               -                    -
Balance at the end of the year                                                     5,892                1,000


The issued and fully paid participating share capital is at all times equal to
the net asset value of the Fund.



ISHARES FTSE EUROTOP 100 FUND


Statement of operations

For the period from 19 October 2001 (date of commencement of operations) to 28
February 2002
                                                                    Notes    2002             2002
                                                                             €000s            £000s

Realised gains/ (losses) on investments                                      9                5
Net change in unrealised gains/ (losses) on investments                      444              271
Currency loss                                                                (6)              (3)
     Income                                                           2      75               46
     Expenses                                                         3      (43)             (26)

Net income                                                                   32               20
Increase in net assets resulting from operations                             479              293

Statement of changes in net assets

For the period from 19 October 2001 (date of commencement of operations) to 28
February 2002

                                                              Notes                    2002              2002
                                                                                      €000s             £000s

Net assets at beginning of the period                                                     -                 -
Increase in net assets resulting from operations                                        479               293

Capital transactions                                            
Value of assets received on share creation                      7                    21,100            12,904
Value of assets transferred on share redemption                 7                         -                 -

Net assets at the end of the year                                                    21,579            13,197



Statement of net assets

As at 28 February 2002
                                                              Notes                   2002              2002
                                                                                     €000s             £000s
Current assets                                                                                         
     Investments                                                                     21,539            13,172    
     Debtors                                                    5                        74                52
     Cash and bank balances                                                               6                 4
     Other assets                                                                        14                 8
                                                                                     21,630            13,228

Current liabilities (amounts falling due within 1 year)
     Creditors                                                                         (51)              (31)
                                                                6                      (51)              (31)

Total net assets                                                                     21,579            13,197
Shareholders' equity                                                             21,579,385        13,196,784
Shares in issue                                                 7                   780,000           780,000
Net asset value per share                                                            €27.67            £16.92



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                         Nominal Investment                                    Value €                    2002
                                                                                                    % of total
                                                                                                    net assets
                                 BELGIUM
                                 Banks
                           4,752 Dexia                                          82,305                    0.38
                           3,511 Fortis                                         90,057                    0.42
                                                                               172,362                    0.80
                                 BELGIUM - TOTAL                               172,362                    0.80
                                 FINLAND
                                 Telecoms Equipment
                          25,723 Nokia AB OJY                                  632,014                    2.93
                                                                               632,014                    2.93
                                 FINLAND - TOTAL                               632,014                    2.93
                                 FRANCE
                                 Aerospace
                           1,750 European Aeronautic Defense                    25,498                    0.12
                                                                                25,498                    0.12
                                 Banks
                           4,813 BNP Paribas                                   269,769                    1.25
                           2,295 Societe Generale                              156,978                    0.73
                                                                               426,747                    1.98
                                 Computer Services
                             673 Cap Gemini Sogeti                              51,585                    0.24
                                                                                51,585                    0.24
                                 Diversified Industrials
                           5,517 Suez                                          177,647                    0.82
                                                                               177,647                    0.82
                                 Fixed Line Telecom Services
                           6,564 Alcatel Series 'A'                            105,352                    0.49
                           1,876 France Telecom                                 57,124                    0.26
                                                                               162,476                    0.75
                                 Food & Drug Retailers
                           3,860 Carrefour                                     201,493                    0.93
                                                                               201,493                    0.93
                                 Food Processors
                             765 Danone                                        101,745                    0.47
                                                                               101,745                    0.47

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                      Nominal Investment                                            Value €               2002
                                                                                                    % of total
                                                                                                    net assets
                              FRANCE (Continued)
                              Insurance
                        9,308 AXA                                                   200,587               0.93
                                                                                    200,587               0.93
                              Oil - Integrated
                        3,827 Total Fina Elf                                        650,207               3.01
                                                                                    650,207               3.01
                              Other Textiles & Leather Goods
                        1,993 LVMH Moet-Hennessy                                    107,622               0.50
                                                                                    107,622               0.50
                              Personal Products
                        1,835 L'Oreal SA                                            148,268               0.69
                                                                                    148,268               0.69
                              Pharmaceuticals
                        4,319 Aventis SA                                            370,354               1.72
                        1,985 Sanofi-Synthelabo                                     150,662               0.70
                                                                                    521,216               2.42
                              Retailers Multi Department
                          498 Pinault-Printemps Redoute                              60,208               0.28
                                                                                     60,208               0.28
                              Semiconductors
                        3,609 Stmicroelectronics                                    123,680               0.57
                                                                                    123,680               0.57
                              Water
                        5,919 Vivendi Universal                                     265,645               1.23
                                                                                    265,645               1.23

                              FRANCE - TOTAL                                      3,224,424              14.94

                              GERMANY
                              Automobiles
                        1,687 Bayerische Motoren Werke                               71,866               0.33
                        5,450 Daimlerchrysler AG                                    252,749               1.17
                        1,738 Volkswagen AG                                          95,960               0.44
                                                                                    420,575               1.94




Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal Investment                                             Value €               2002
                                                                                                    % of total
                                                                                                    net assets
                             GERMANY (Continued)
                             Banks
                       2,117 Bayerische Hypo-Vereinsbank                             74,836               0.35
                       3,377 Deutsche Bank AG                                       229,095               1.06
                                                                                    303,931               1.41
                             Chemicals - Commodity
                       3,165 BASF AG                                                140,589               0.65
                       3,969 Bayer AG                                               146,072               0.68
                                                                                    286,661               1.33
                             Diversified Industries
                       3,758 E.On AG                                                213,342               0.99
                       2,160 RWE AG (New) Series 'A'                                 89,705               0.42
                                                                                    303,047               1.41
                             Electrical Equipment
                       4,845 Siemens AG                                             328,007               1.52
                                                                                    328,007               1.52
                             Fixed Line Telecom Services
                      17,097 Deutsche Telekom                                       280,733               1.30
                                                                                    280,733               1.30
                             Other Insurance
                       1,083 Allianz AG                                             281,288               1.30
                                                                                    281,288               1.30
                             Reinsurance
                         480 Muenchener Rueckversicherung AG                        135,360               0.63
                                                                                    135,360               0.63
                             Semiconductors
                       1,878 Infineon Technologies AG                                49,748               0.23
                                                                                     49,748               0.23
                             Software
                       1,287 SAP AG                                                 201,899               0.94
                                                                                    201,899               0.94

                             GERMANY - TOTAL                                      2,591,249              12.01

                             IRELAND
                             Pharmaceuticals
                       1,846 Elan Corporation                                        29,536               0.14
                                                                                     29,536               0.14

                             IRELAND - TOTAL                                         29,536               0.14




Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal Investment                                               Value €              2002
                                                                                                     % of total
                                                                                                     net assets
                             ITALY
                             Banks
                      23,684 Banca Intesa Di Risp SPA                                  63,710             0.30
                       5,704 San Paolo IMI SPA                                         66,965             0.31
                      20,353 Unicredito Italiano SPA                                   91,589             0.42
                                                                                      222,264             1.03
                             Electricity
                      13,165 Enel                                                      85,178             0.39
                                                                                       85,178             0.39
                             Fixed Line Telecom Services
                      35,698 Olivetti SPA                                              48,763             0.23
                      14,267 Telecom Italia SPA                                       135,679             0.63
                                                                                      184,442             0.86
                             Oil-Integrated
                      16,298 ENI SPA                                                  258,160             1.20
                                                                                      258,160             1.20
                             Other Insurance
                       6,923 Assicurazioni Generali SPA                               198,205             0.92
                                                                                      198,205             0.92
                             Wireless Telecoms Services
                      22,890 Telecom Italia Mobile SPA                                124,522             0.58
                                                                                      124,522             0.58

                             ITALY - TOTAL                                          1,072,771             4.98

                             NETHERLANDS
                             Banks
                       8,366 ABN-Amro Holdings NV                                     168,408             0.78
                                                                                      168,408             0.78
                             Beverages - Brewers
                       1,064 Heineken NV                                               50,104             0.23
                                                                                       50,104             0.23
                             Electronic Equipment
                       7,149 Philips Electronic (KON)                                 215,900             1.00
                                                                                      215,900             1.00
                             Food & Drug Retailers
                       4,881 Ahold (KON) NV                                           130,079             0.60
                                                                                      130,079             0.60

Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal Investment                                               Value €              2002
                                                                                                     % of total
                                                                                                     net assets
                             NETHERLANDS (continued)
                             Food Processors
                       3,101 Unilever NV CVA                                          208,386             0.97
                                                                                      208,386             0.97
                             Life Assurance
                       5,786 Aegon NV                                                 145,576             0.67
                                                                                      145,576             0.67
                             Oil - Integrated
                      11,404 Royal Dutch Petroleum                                    680,248             3.15
                                                                                      680,248             3.15
                             Other Insurance
                      10,616 ING Groep NV CVA                                         291,834             1.35
                                                                                      291,834             1.35

                             NETHERLANDS - TOTAL                                    1,890,535             8.75

                             SPAIN
                             Banks
                      17,359 Banco Bilbao Vizcaya Argentaria                          231,569             1.07
                      25,309 Banco Santander Central Hispano                          233,349             1.08
                                                                                      464,918             2.15
                             Electricity
                       5,743 Endesa SA                                                 99,584             0.46
                                                                                       99,584             0.46
                             Fixed Line Telecom Services
                      25,873 Telefonica SA                                            348,768             1.62
                                                                                      348,768             1.62
                             Oil - Integrated
                       6,621 Repsol Ypf SA                                             94,615             0.44
                                                                                       94,615             0.44

                             SPAIN - TOTAL                                          1,007,885             4.67

                             SWEDEN
                             Banks
                      16,178 Nordic Baltic Nordea                                      97,227             0.45
                                                                                       97,227             0.45




Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                      Nominal  Investment                                             Value €            2002
                                                                                                   % of total
                                                                                                   net assets
                               SWEDEN (continued)
                               Telecommunication Equipment
                        40,219 Ericsson (LM) Telecommunications Series 'B'            197,803             0.92
                                                                                      197,803             0.92

                               SWEDEN - TOTAL                                         295,030             1.37

                               SWITZERLAND
                               Banks
                         6,504 Credit Suisse Group                                    259,732             1.20
                         6,952 UBS AG CHF                                             371,655             1.72
                                                                                      631,387             2.92
                               Heavy Electrical Equipment/Engineering R&D
                         6,504 ABB                                                     53,578             0.25
                                                                                       53,578             0.25
                               Integrated Telecom
                           160 Swisscom AG                                             53,860             0.25
                                                                                       53,860             0.25
                               Miscellaneous Packaged
                         2,140 Nestle AG                                              546,270             2.53
                                                                                      546,270             2.53
                               Multi Line Insurance
                           455 Zurich Financial Services                              101,647             0.47
                                                                                      101,647             0.47
                               Pharmaceuticals
                        15,664 Novartis AG                                            687,656             3.19
                           434 Roche Holding AG                                        44,211             0.20
                         3,815 Roche Holding AG Genusscheine                          309,741             1.44
                                                                                    1,041,608             4.83
                               Reinsurance
                         1,717 Swiss Reinsurance                                      178,402             0.83
                                                                                      178,402             0.83

                               SWITZERLAND - TOTAL                                  2,606,752            12.08

                               UNITED KINGDOM
                               Banks - Retail
                         7,838 Abbey National                                         121,872             0.56
                         8,998 Barclays                                               304,629             1.41
                        19,266 HBOS                                                   232,925             1.08
                        50,667 HSBC Holdings                                          638,602             2.96



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal Investment                                               Value €             2002
                                                                                                    % of total
                                                                                                    net assets
                             UNITED KINGDOM (continued)
                             Banks - Retail (continued)
                      30,208 Lloyds TSB Group                                         335,149             1.55
                      15,469 Royal Bank of Scotland Group                             437,136             2.03
                       6,098 Standard Chartered                                        68,750             0.32
                                                                                    2,139,063             9.91
                             Beverages, Distillers & Vintners
                      18,420 Diageo                                                   252,450             1.17
                                                                                      252,450             1.17
                             Breweries, Pubs & Restaurants
                      12,013 Compass Group                                             94,472             0.44
                                                                                       94,472             0.44
                             Cable & Satellite
                       5,118 British Sky Broadcasting Group                            59,956             0.28
                                                                                       59,956             0.28
                             Defence
                       8,165 BAE Systems                                               42,363             0.20
                                                                                       42,363             0.20
                             Electricity
                      10,016 Scottish Power                                            69,780             0.32
                                                                                       69,780             0.32
                             Fixed Telecommunciations
                      47,063 British Telecom Group                                    196,382             0.91
                      13,781 Cable & Wireless                                          49,466             0.23
                                                                                      245,848             1.14
                             Food & Drug Retailers
                      37,605 Tesco                                                    154,615             0.72
                                                                                      154,615             0.72
                             Food Processors
                      15,802 Unilever                                                 151,083             0.70
                                                                                      151,083             0.70
                             Life Assurance
                      12,208 CGNU                                                     142,913             0.66
                      10,741 Prudential                                               114,962             0.53
                                                                                      257,875             1.19
                             Mining Finance
                       7,966 Anglo American                                           156,095             0.72
                                                                                      156,095             0.72



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal  Investment                                              Value €            2002
                                                                                                   % of total
                                                                                                   net assets
                             UNITED KINGDOM (Continued)
                             Oil-Integrated
                      19,013 BG Group                                                  90,737             0.42
                     122,662 BP                                                     1,165,769             5.40
                      53,412 Shell Transport & Trading Company                        428,756             1.99
                                                                                    1,685,262             7.81
                             Other Mineral Extractors & Mines
                       5,784 Rio Tinto                                                134,194             0.62
                                                                                      134,194             0.62
                             Pharmaceuticals
                       9,491 AstraZeneca                                              553,753             2.57
                      33,753 GlaxoSmithKline                                          949,415             4.40
                                                                                    1,503,168             6.97
                             Publishing
                       4,314 Pearson                                                   54,901             0.25
                       7,752 Reuters Group                                             66,275             0.31
                                                                                      121,176             0.56
                             Telecommunication Services
                      46,992 Mmo2                                                      50,603             0.23
                                                                                       50,603             0.23
                             Tobaccos
                       8,867 British American Tobacco                                  93,892             0.44
                                                                                       93,892             0.44
                             Wireless
                     368,552 Vodafone Group                                           804,265             3.72
                                                                                      804,265             3.72

                             UNITED KINGDOM - TOTAL                                 8,016,160            37.14




Total value of Investments                                                       21,538,718              99.81
Other net assets                                                                     34,442               0.16
Cash*                                                                                 6,225               0.03
Total value of Fund                                                              21,579,385             100.00

*All cash holdings are held with the Governor of the Bank of Ireland

Portfolio changes

Please note that portfolio changes may include primary market creation or
redemption activity

Largest sales                                                                         Proceeds €

Olivetti SPA                                                                          23,709
Marconi                                                                               15,126
Vodafone Group                                                                        2,441
Cable & Wireless                                                                      1,427
BP                                                                                    813
E.On AG                                                                               409
HSBC Holdings                                                                         329
GlaxoSmithKline                                                                       228
Royal Dutch Petroleum                                                                 303
Total Fina Elf                                                                        212
Pinault-Printemps Redoute                                                             166
AstraZeneca                                                                           161
Nokia AB Ojy                                                                          158
UBS AG                                                                                121
BASF AG                                                                               146
Novartis AG                                                                           98
Daimlerchrysler AG                                                                    95
Danone                                                                                43
BNP Paribas                                                                           40
Nestle AG                                                                             19

Largest purchases                                                                     Cost €

Vodafone Group                                                                        370,993
BP                                                                                    123,475
Shell Transport & Trading Company                                                     53,756
HSBC Holdings                                                                         50,996
GlaxoSmithKline                                                                       33,981
Lloyds TSB Group                                                                      30,419
Nokia AB Ojy                                                                          25,881
Telefonica                                                                            25,527
Deutsche Telekom                                                                      17,111
Novartis AG C                                                                         15,762
Royal Bank of Scotland Group                                                          15,568
Royal Dutch Petroleum                                                                 11,707
Astrazeneca                                                                           9,652
Barclays                                                                              9,052
UBS AG                                                                                7,073
Vivendi Universal                                                                     5,956
Aventis SA                                                                            4,352
Total Fina Elf                                                                        4,039
Roche Holding AG Genusscheine                                                         3,844
Nestle AG                                                                             2,159



Notes to the financial statements for the period ended 28 February 2002

1. Accounting policies

See page 17

2. Income
                                                                                          2002            2002
                                                                                         €000s           £000s
Dividends                                                                                   86              54
Withholding tax                                                                           (10)             (7)
Equalisation income                                                                        (1)             (1)
Income                                                                                      75              46

3. Expenses
                                                                                          2002            2002
                                                                                         €000s           £000s
Management fees                                                                              1               1
Custody fees                                                                                 9               5
Transaction fees                                                                            29              18
Depository fees                                                                              1               1
Audit fee                                                                                    7               4
Directors' fee                                                                               4               2
FT fees                                                                                      1               1
Listing fees                                                                                 5               3
Share registration fees                                                                      1               1
Other costs                                                                                  5               3
In specie transactions charges                                                              12               8
Refund of in specie transactions charges                                                  (12)             (8)
Fee rebate from manager                                                                   (20)            (13)
Expenses                                                                                    43              26

4. Dividends

Dividends will normally be declared semi annually with a view to their being
paid on or about 15 of June and December of each year. No dividend has been
declared for this period.

5. Debtors
                                                                                          2002            2002
                                                                                         €000s           £000s
Accrued income                                                                              50              30
Withholding tax                                                                            (5)             (3)
Sales awaiting settlement                                                                    8               5
Fee rebate from Manager                                                                     18              12
Debtors                                                                                     71              44





Notes to the financial statements (continued)

6. Creditors - amounts falling due within one year
                                                                                          2002            2002
                                                                                         €000s           £000s
Establishment costs                                                                         18              11
Accrued expenses                                                                            26              15
Purchases awaiting settlement                                                                7               5
Creditors                                                                                   51              31

7. Share capital

Participating shares - issued and fully paid
                                                                                                          2002
                                                                                             No of shares 000s
Balance at the beginning of the period                                                                       -
Issued during the period                                                                                   780
Redeemed during the period                                                                                   -
Balance at the end of the period                                                                           780


The issued and fully paid participating share capital is at all times equal to
the net asset value of the Fund.


IBLOOMBERG EUROPEAN FINANCIALS FUND


Statement of operations

For the year ended 28 February 2002
                                                  Notes   2002         2002         2001         2001

                                                          €000s        £000s        €000s        £000s
Realised gains/ (losses) on investments                   (1,302)     (796)        -            -
Net change in unrealised gains/ (losses) on               (5,613)     (3,432)      (2,075)      (1,323)
investments
Currency gain                                             -           -            62           40
     Income                                         2     697         426          97           62
     Expenses                                       3     (198)       (121)        (12)         (7)

Net income                                                499         305          85           55
Dividends                                           4     (451)       (276)        (85)         (55)
Decrease in net assets resulting from                     (6,867)     (4,199)      (2,013)      (1,283)
operations



Statement of changes in net assets

For the year ended 28 February 2002
                                                 Notes   2002 €000s      2002         2001         2001

                                                                        £000s        €000s        £000s
Net assets at beginning of the period                         39,670       25,292            -            -
Notional exchange difference                     1(e)              -      (1,032)            -            -
Decrease in net assets resulting from                        (6,867)      (4,199)      (2,013)      (1,283)
operations

Capital transactions
Value of assets received on share creation         7     -           -            41,683       26,575
Value of assets transferred on share               7     -           -            -
redemption                                                                                     -
Net assets at the end of the year                             32,803       20,061       39,670       25,292



Statement of net assets

As at 28 February 2002
                                         Notes             2002           2002           2001            2001
     
                                                          €000s          £000s           €000s           £000s
Current assets
     Investments                                         32,740         20,022          39,655          25,283
     Debtors                               5                112             68             119              76
     Cash and bank balances                                   -              -              15               9
     Other assets                                            21             13              66              42
                                                         32,873         20,103          39,855          25,410

Current liabilities (falling due
within 1 year )
     Creditors                             6               (70)           (42)           (100)            (63)
     Dividend payable                      4                  -              -            (85)            (55)
                                                           (70)           (42)           (185)           (118)

Total net assets                                         32,803         20,061          39,670          25,292

Shareholders' equity                                 32,803,011     20,060,731      39,699,755      25,292,152
Shares in issue                            7          4,200,000      4,200,000       4,200,000       4,200,000

Net asset value per share                                 €7.81          £4.78           €9.45           £6.02



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal Investment                                            Value €               2002
                                                                                                   % of total
                                                                                                   net assets
                             BELGIUM
                             Banks
                      22,075 Dexia                                                  380,794               1.16
                       9,248 KBC Bankverzekerin                                     326,732               1.00
                                                                                    707,526               2.16
                             Diversified Financial Services
                      13,989 Fortis                                                 357,838               1.09
                                                                                    357,838               1.09

                             BELGIUM - TOTAL                                      1,065,364               3.25

                             DENMARK
                             Banks
                      19,355 Danske Bank A/S                                        339,784               1.04
                                                                                    339,784               1.04

                             DENMARK - TOTAL                                        339,784               1.04

                             FRANCE
                             Banks
                      25,688 BNP Paribas                                          1,432,106               4.37
                       9,390 Credit Lyonnais SA                                     358,980               1.09
                       5,605 Societe Generale                                       381,700               1.16
                                                                                  2,172,786               6.62
                             Insurance
                       6,307 Assurance Generale De France                           342,470               1.04
                      55,812 AXA                                                  1,194,377               3.64
                                                                                  1,536,847               4.68

                             FRANCE - TOTAL                                       3,709,633              11.30

                             GERMANY
                             Banks
                      10,337 Bayerische Hypo-Vereinsbank                            363,862               1.11
                      18,861 Deutsche Bank AG                                     1,288,206               3.93
                                                                                  1,652,068               5.04



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                     Nominal Investment                                             Value €              2002
                                                                                                   % of total
                                                                                                   net assets
                             GERMANY (Continued)
                             Insurance
                       5,731 Allianz AG                                           1,471,721               4.49
                       4,868 Muenchener Rueckversicherung                         1,370,050               4.18
                                                                                  2,841,771               8.67

                             GERMANY - TOTAL                                      4,493,839              13.71

                             ITALY
                             Banks
                     125,750 Banca Intesa Di Risp SPA                               341,411               1.04
                      28,763 San Paolo IMI SPA                                      339,116               1.03
                      77,747 Unicredito Italiano SPA                                349,862               1.07
                                                                                  1,030,389               3.14
                             Diversified Financial Services
                      26,839 Mediobanca SPA                                         332,804               1.01
                                                                                    332,804               1.01
                             Insurance
                      41,660 Assicurazioni Generali SPA                           1,189,392               3.63
                                                                                  1,189,392               3.63

                             ITALY - TOTAL                                        2,552,585               7.78

                             NETHERLANDS
                             Banks
                      18,904 ABN-Amro Holdings NV                                   383,184               1.17
                                                                                    383,184               1.17
                             Diversified Financial Services
                      33,411 Fortis (NI)                                            856,658               2.61
                                                                                    856,658               2.61
                             Insurance
                      43,912 Aegon NV                                             1,091,652               3.33
                      53,919 ING Groep NV CVA                                     1,474,146               4.49
                                                                                  2,565,801               7.82

                             NETHERLANDS - TOTAL                                  3,805,640              11.60



Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                    Nominal  Investment                                             Value €              2002
                                                                                                   % of total
                                                                                                   net assets
                             SPAIN
                             Banks
                      94,347 Banco Bilbao Vizcaya Argentaria                      1,256,702               3.83
                     142,569 Banco Santander Central Hispano                      1,317,338               4.02
                                                                                  2,574,040               7.85

                             SPAIN - TOTAL                                        2,574,040               7.85

                             SWEDEN
                             Banks
                      58,932 Nordic Baltic Nordea                                   351,450               1.07
                      21,537 Svenska Handelsbank Series 'A'                         337,747               1.03
                                                                                    689,197               2.10

                             SWEDEN - TOTAL                                         689,197               2.10

                             SWITZERLAND
                             Banks
                      30,632 Credit Suisse Group                                  1,223,778               3.73
                      25,938 UBS AG                                               1,384,597               4.22
                                                                                  2,608,375               7.95
                             Insurance
                      11,201 Swiss Reinsurance                                    1,154,815               3.52
                       1,289 Zurich Financial Services                              292,019               0.89
                                                                                  1,446,834               4.41

                             SWITZERLAND - TOTAL                                  4,055,209              12.36

                             UNITED KINGDOM
                             Banks
                      21,368 Abbey National                                         330,643               1.01
                      39,610 Barclays                                             1,352,816               4.12
                      99,603 HBOS                                                 1,204,798               3.67
                     109,810 HSBC Holdings                                        1,401,007               4.27
                     119,900 Lloyds TSB Group                                     1,337,541               4.08
                      53,289 Royal Bank of Scotland Group                         1,529,743               4.66
                      25,459 Standard Chartered                                     288,380               0.88
                                                                                  7,444,928              22.69


Schedule of investments

As at 28 February 2002

Transferable securities admitted to official stock exchange listing

                    Nominal  Investment                                             Value €              2002
                                                                                                   % of total
                                                                                                   net assets
                             UNITED KINGDOM (continued)
                             Diversified Financial Services
                      20,877 Amvescap                                               293,336               0.89
                                                                                    293,336               0.89
                             Insurance
                      95,183 CGNU                                                 1,099,178               3.35
                     133,825 Legal & General Group                                  329,988               1.01
                      26,938 Prudential                                             286,847               0.88
                                                                                  1,716,013               5.24

                             UNITED KINGDOM - TOTAL                               9,454,277              28.82



Total value of Investments                                                       32,739,568              99.81
Other net assets                                                                     63,785               0.19
Cash*                                                                                 (342)             (0.00)
Total value of Fund                                                              32,803,011             100.00

*All cash holdings are held with the Governor of the Bank of Ireland

Portfolio changes

Please note that portfolio changes may include primary market creation or
redemption activity

Largest sales                                                                                          Proceeds €

ABN-Amro Holdings NV                                                                                   49,711
Lloyds TSB Group                                                                                       34,211
Skandia Insurance                                                                                      25,704
Royal Bank of Scotland Group                                                                           16,752
Commerzbank AG                                                                                         14,064
HSBC Holdings                                                                                          10,269
HBOS                                                                                                   10,185
Banco Bilbao Vizcaya Argentaria                                                                         9,066
Bank of Scotland                                                                                        7,362
Barclays                                                                                                6,249
BNP Paribas                                                                                             4,317
UBS AG                                                                                                  4,016
Credit Suisse Group                                                                                     3,427
Zurich Financial Services                                                                               2,345
Ergo Versicherungs                                                                                      2,300
Dresdner Bank AG                                                                                        2,112
Swiss Reinsurance                                                                                       1,738
Deutsche Bank AG                                                                                        1,541
Dresdner Bank Shr-Packages Submitted For Takeover                                                         712
Muenchener Rueckversicherung AG                                                                           375

Largest purchases                                                                                      Cost €

Banca Intesa Di Risp SPA                                                                               43,510
HBOS                                                                                                   42,162
Mediobanca SPA                                                                                         26,862
Svenska Handelsbank Series 'A'                                                                         21,555
Fortis                                                                                                 19,438
Fortis Series 'B'                                                                                      13,989
ING Groep NV CVA                                                                                       12,058
AXA                                                                                                     9,740
Credit Lyonnais SA                                                                                      9,398
KBC Bankverzekerin                                                                                      9,256
HSBC Holdings                                                                                           7,715
CGNU                                                                                                    7,422
Assurance Generale De France                                                                            6,313
Assicurazioni Generali SPA                                                                              3,811
Aegon NV                                                                                                3,728
Bayerische Hypo-Vereinsbank                                                                             3,622
Deutsche Bank AG                                                                                        2,006
Zurich Financial Services                                                                               1,172
Muenchener Rueckversicherung AG                                                                           506
Allianz AG                                                                                                401



Notes to the financial statements for the year ended 28 February 2002

1. Accounting policies

See page 17

2. Income
                                                             2002           2002           2001           2001
                                                            €000s          £000s          €000s          £000s

Dividends                                                     847            518            108             68
Withholding tax                                             (157)           (96)           (11)            (6)
Bank interest                                                   7              4              -              -
Income                                                        697            426             97             62

3. Expenses
                                                            2002            2002           2001           2001
                                                           €000s           £000s          €000s          £000s

Management fees                                              129              79              8              5
Custody fees                                                  39              24              3              2
Transaction fees                                              11               6              1              1
Audit fee                                                      7               5              7              4
Directors' fee                                                 6               4              5              3
Directors' & Officers insurance                                6               4              -              -
Printing fees                                                  2               1              -              -
FT fees                                                       10               6              3              2
Listing fees                                                   7               4              4              3
Share registration fees                                       11               7              -              -
Other costs                                                    6               3              2              1
In specie transactions charges                                 -               -              3              2
Refund of in specie transactions charges                       -               -            (3)            (2)
Fee rebate from manager                                     (36)            (22)           (21)           (14)
Expenses                                                     198             121             12              7

4. Dividends

Dividends will normally be declared semi annually with a view to their being
paid on or about 15 of June and December of each year. The Directors intend to
maintain a dividend policy that enables the Company to qualify each financial
year as a distributing fund under chapter V of part XVII of the Income and
Corporation Taxes Act 1988, of the United Kingdom.
                                                                          2002        2002      2001      2001
                                            Ex date      Pay date        €000s       £000s     €000s     £000s

1st iBloomberg Financial distribution       30.11.01     15.12.01          451         276        85        55
Total distribution                                                         451         276        85        55



Notes to the financial statements (continued)

5. Debtors
                                                            2002            2002           2001           2001
                                                           €000s           £000s          €000s          £000s
Accrued income                                                92              56            107             68
Withholding tax                                              (9)             (6)            (9)            (6)
Fee rebate from Manager                                       29              18             21             14
Debtors                                                      112              68            119             76

6. Creditors - amounts falling due within one year
                                                            2002            2002            2001          2001
                                                           €000s           £000s           €000s         £000s

Establishment costs                                           30              18              68            43
Accrued expenses                                              29              17              21            13
Intra-Fund transfer                                           11               7              11             7
Creditors                                                     70              42             100            63

7. Share capital

Participating shares - issued and fully paid


                                                                            2002                          2001

                                                           Number of shares 000s         Number of shares 000s
Balance at the beginning of the year                                       4,200                             -
Issued during the year                                                         -                         4,200
Redeemed during the year                                                       -                             -
Balance at the end of the year                                             4,200                         4,200


The issued and fully paid participating share capital is at all times equal to
the net asset value of the Fund.




                      This information is provided by RNS
            The company news service from the London Stock Exchange


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FR EAESFAEEAEAE                                                                                                             

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