UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22140
NETS Trust
(Exact name of registrant as specified in charter)
50 South LaSalle Street
Chicago IL 60603
(Address of
principal executive offices) (Zip code)
Craig R. Carberry,
Esq.
The Northern Trust Company
50 South LaSalle Street
Chicago IL 60603
(Name and Address of Agent for Service)
With a copy to:
Diana
McCarthy, Esq.
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103
Registrants telephone number, including area code: (800) 595-9111
Date of fiscal year end: October 31
Date of reporting period: October 31, 2008
Item 1.
|
Reports to Stockholders.
|
The following is a copy of the annual
report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1) for the NETS Trust (the Registrant).
NETS FUNDS
ANNUAL REPORT TO SHAREHOLDERS
October 31, 2008
NETS AEX-index
®
Fund (The Netherlands)
NETS BEL 20
®
Index Fund (Belgium)
NETS CAC40
®
Index Fund (France)
NETS DAX
®
Index Fund (Germany)
NETS FTSE 100 Index Fund (United Kingdom)
NETS FTSE/JSE Top 40 Index Fund (South Africa)
NETS FTSE Singapore Straits Times Index Fund
NETS Hang Seng China Enterprises Index Fund
NETS Hang Seng Index Fund (Hong Kong)
NETS ISEQ
20 Index Fund (Ireland)
NETS PSI 20
®
Index Fund (Portugal)
NETS S&P/ASX 200 Index Fund (Australia)
NETS S&P/MIB Index Fund (Italy)
NETS TA-25 Index Fund (Israel)
NETS Tokyo Stock Exchange REIT Index Fund
NETS TOPIX
®
Index Fund (Japan)
NETS FUNDS
TABLE OF CONTENTS
The views contained in the portfolio management
commentary are those of Fund management as of October 31, 2008, the last day of the reporting period. These views are subject to change without notice as market and other conditions fluctuate. While these views are intended to assist shareholders in
understanding their investment in the Funds, they do not constitute investment advice, are not a guarantee of future performance, and are not intended as an offer or solicitation with respect to the purchase or sale of any security.
This report has been prepared for the general information of NETS Funds shareholders. It is not authorized for distribution to prospective investors unless accompanied or
preceded by a current NETS Funds prospectus, which contains more complete information about NETS Funds investment policies, management fees and expenses. Investors are reminded to read the prospectus carefully before investing or sending
money.
Foreside Fund Services, LLC, Distributor.
NOT FDIC INSURED
May lose value/No bank guarantee
|
|
|
|
|
ANNUAL REPORT
|
|
1
|
|
NETS FUNDS
|
NETS FUNDS
NETS AEX-INDEX
®
FUND (THE NETHERLANDS)
PORTFOLIO
MANAGEMENT COMMENTARY
For the period of roughly five and a half months between its inception
date on May 14, 2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS AEX-index
®
Fund (The Netherlands) was -54.24% at NAV. The Fund sought
to track the return of its benchmark, the AEX-index
®
, which posted a return of -54.37% for the same period. The Index is a price-weighted index consisting of stocks of the 25 leading
companies listed on the Euronext Amsterdam.
Market performance reflected the effects of the global credit crisis and economic slowdown. In late September
2008, a rescue package was announced for Fortis that involved intervention by the governments of Belgium, The Netherlands and Luxembourg.
Royal Dutch Shell
PLC, the largest weighting in the Fund (17.9%), performed relatively better than the rest of the Fund falling roughly 31.0% on strong energy prices during most of the period. The depreciation of the Euro from Fund inception through the end of
October 2008 hurt US investors and contributed roughly -18.0% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-54.24%
|
|
-54.64%
|
|
-54.37%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/14/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/19/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A
$10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The AEX-index
®
is a price-weighted index consisting of shares of the 25 leading companies listed on Euronext Amsterdam.
Performance of a $10,000 investment, with dividend reinvested, from inception date through October
31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
AEX
|
INCEPTION DATE
|
|
5/14/2008
|
TOTAL NET ASSETS
|
|
$1,143,602
|
NET ASSET VALUE
|
|
$11.44
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
2
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS BEL 20
®
INDEX FUND (BELGIUM)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly five and a half months between its inception date on May 14,
2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS BEL 20
®
Index Fund (Belgium) was -52.64% at NAV. The Fund sought to track the return of its
benchmark, the BEL 20
®
Index, which posted a return of -54.63% for the same period. The Index consists of the 20 most liquid Belgian company shares listed on the Euronext Brussels.
Market performance reflected the effects of the global credit crisis and economic slowdown. Financials represented the largest sector weighting in the Fund
as of the end of October with a weighting of 27.9%. In late September 2008, two of the bank stocks held in the Fund needed to be bailed out by the Belgian government. Rescue packages for Fortis and Dexia were announced on September 28 and
September 29, 2008 respectively.
GDF Suez, the largest weighting (21.4%) in the Fund performed relatively better than the rest of the Fund falling
roughly 35.0% on strong energy prices during most of the period. The depreciation of the Euro from Fund inception through the end of October 2008 hurt US investors and contributed roughly -18.0% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-52.64%
|
|
-53.72%
|
|
-54.63%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/14/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/19/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The BEL 20
®
is a market capitalization adjusted free-float index by the FTSE free-float banding system consisting of the 20 most
liquid Belgian company shares listed on the Euronext Brussels.
Performance of
a $10,000 investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
BRU
|
INCEPTION DATE
|
|
5/14/2008
|
TOTAL NET ASSETS
|
|
$1,183,798
|
NET ASSET VALUE
|
|
$11.84
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
3
|
|
NETS FUNDS
|
NETS FUNDS
NETS CAC40
®
INDEX FUND (FRANCE)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly seven months between its inception date on April 11, 2008, and
the end of the fiscal year on October 31, 2008, the total return of the NETS CAC40
®
Index Fund (France) was -40.08% at NAV. The Fund sought to track the return of its benchmark,
the CAC40
®
Index, which posted a return of -39.86% for the same period. The Index consists of 40 stocks selected from the 100 largest market capitalization companies with the most actively
traded stocks on the Paris Bourse.
Market performance reflected the effects of the global credit crisis and economic slowdown. Financials represented the
largest sector weighting in the Fund as of the end of October with a weighting of 20.6%. In late September 2008, the French government participated in a bailout of Dexia. The French government also announced a plan to help prevent future bank
failures and to stabilize the financial system.
Total SA, the largest weighting in the Fund (15.8%), performed relatively better than the rest of the Fund,
falling roughly 29% on strong energy prices during most of the period. The depreciation of the Euro from Fund inception through the end of October hurt US investors and contributed roughly -20.0% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-40.08%
|
|
-39.28%
|
|
-39.86%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 4/11/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(4/16/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The CAC40
®
is a narrowly-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse.
Performance of a $10,000 investment, with dividend reinvested, from inception date through October
31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
FRC
|
INCEPTION DATE
|
|
4/11/2008
|
TOTAL NET ASSETS
|
|
$1,498,287
|
NET ASSET VALUE
|
|
$14.98
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all
dividends and capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in
Fund shares. Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
4
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS DAX
®
INDEX FUND (GERMANY)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly seven months between its inception date on April 9, 2008, and the
end of the fiscal year on October 31, 2008, the total return of the NETS DAX
®
Index Fund (Germany) was -40.56% at NAV. The Fund sought to track the return of its benchmark, the
DAX
®
Index, which posted a return of -40.35% for the same period. The Index consists of the 30 largest and most actively traded companies listed on the Frankfurt Stock Exchange.
Market performance reflected the effects of the global credit crisis and economic slowdown. Consumer Discretionary represented the largest sector weighting in the Fund
as of the end of October with a weighting of 18.6% and Financials represented a close second at 17%. In late September and early October of 2008, Hypo Real Estate became a victim of the global financial turmoil and had to be rescued by a German
government led bailout.
Volkswagen AG, the largest weighting in the Fund (11%), more than doubled its share price over the period as Porsche took an
increased stake in the company. The depreciation of the Euro from Fund inception through the end of October hurt US investors and contributed roughly -20.0% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-40.56%
|
|
-39.16%
|
|
-40.35%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 4/9/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(4/11/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The DAX
®
Index reflects the segment of blue chips admitted to the Prime Standard Segment and comprises the 30 largest and most
actively traded companies that are listed at the Frankfurt Stock Exchange (FWB
®
).
Performance of a $10,000 investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
DAX
|
INCEPTION DATE
|
|
4/9/2008
|
TOTAL NET ASSETS
|
|
$1,485,958
|
NET ASSET VALUE
|
|
$14.86
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
5
|
|
NETS FUNDS
|
NETS FUNDS
NETS FTSE 100 INDEX FUND (UNITED KINGDOM)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly seven months between its inception date on April 4, 2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS FTSE 100 Index Fund (United Kingdom)
was -39.04% at NAV. The Fund sought to track the return of its benchmark, the FTSE 100 Index, which posted a return of -39.09% for the same period. The Index is a free float adjusted, market capitalization-weighted index, consisting of stocks of the
largest 100 companies traded primarily on the London Stock Exchange.
Market performance reflected the effects of the global credit crisis and economic
slowdown. In early October, the British government orchestrated a rescue package for the UK banking system that involved additional short term liquidity into the banking system, a provision of new equity to recapitalize balance sheets and a state
guarantee of new bank-issued debt. The financial sector was the second largest sector in the Fund as of the end of October 2008 with a weight of 20.3%.
The
depreciation of the British Pound from Fund inception through the end of October hurt US investors and contributed roughly
-19% to the return of the Fund. Depreciation in the British Pound was driven primarily by slowing growth and lower
domestic interest rates.
INVESTMENT
PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-39.04%
|
|
-50.00%
|
|
-39.09%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 4/4/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/9/08),
the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The FTSE 100 Index is a free-float adjusted, market capitalization-weighted index consisting of shares of the largest 100 stocks traded primarily on
the London Stock Exchanges Electronic Trading System.
Performance of a $10,000
investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
LDN
|
INCEPTION DATE
|
|
4/4/2008
|
TOTAL NET ASSETS
|
|
$1,523,658
|
NET ASSET VALUE
|
|
$15.24
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
6
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS FTSE/JSE TOP 40 INDEX FUND (SOUTH AFRICA)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly six months between its inception date on May 7, 2008, and the end of the fiscal year on October 31, 2008, the total return of the
NETS FTSE/JSE Top 40 Index Fund (South Africa) was -50.12%. The Fund sought to track the return of its benchmark, the FTSE /JSE Top 40 Index, which posted a return of -50.33% for the same period. The Index is a free float-adjusted, market
capitalization-weighted index consisting of stocks of the 40 largest companies traded primarily on the Johannesburg Stock Exchange.
Market performance
reflected the effects of the global credit crisis and economic slowdown. Although South African banks had little exposure to the toxic assets that have plagued some of their global counterparts, they were not immune to the global
financial turmoil. The two largest stocks in the Fund as of the end of October 2008, BHP Billiton PLC, 14.26%, and Anglo American PLC, 12.23%, both mining companies, were hurt by the steep fall in commodities through October 31, 2008.
The depreciation of the South African Rand from Fund inception through the end of October 2008 hurt US investors and contributed roughly -31% to the return
of the Fund. Depreciation of the Rand was driven by weaker growth and a large current account deficit.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-50.12%
|
|
-48.36%
|
|
-50.33%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/7/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/12/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The FTSE/JSE Top 40 Index is a free-float adjusted, market capitalization-weighted index consisting of the 40 largest companies traded primarily on
the Johannesburg Stock Exchange
Performance of a $10,000 investment, with dividend
reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
JNB
|
INCEPTION DATE
|
|
5/7/2008
|
TOTAL NET ASSETS
|
|
$1,246,463
|
NET ASSET VALUE
|
|
$12.46
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.65%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
7
|
|
NETS FUNDS
|
NETS FUNDS
NETS FTSE SINGAPORE STRAITS TIMES INDEX FUND
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly six months between its inception date on May 7, 2008, and the end of the fiscal year on October 31, 2008, the total return of the
NETS FTSE Singapore Straits Times Index Fund was -47.56% at NAV. The Fund sought to track the return of its benchmark, the FTSE Singapore Straits Times Index, which posted a return of -47.78% for the same period. The Index is a market
capitalization-weighted index consisting of 50 of the most liquid stocks, based on average daily trading value, traded primarily on the Singapore Stock Exchange.
Market performance reflected the effects of the global credit crisis and economic slowdown. Financials represented the largest sector weighting in the Fund as of the end of October 2008 with a weighting of 44.4% . The next largest sectors
were Industrials 28.9% and Telecommunication Services 16.1%. The top three sectors accounted for 89.4% of the market cap as of the end of October and all had negative returns.
The depreciation of the Singapore Dollar from Fund inception through the end of October hurt US investors and contributed roughly -8% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-47.56%
|
|
-47.88%
|
|
-47.78%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/7/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/12/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The FTSE Singapore Straits Times Index is a market capitalization-weighted index comprised of 50 of the most liquid stocks, as measured by an average
daily traded value, traded primarily on the Singapore Exchange.
Performance of a
$10,000 investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
SGT
|
INCEPTION DATE
|
|
5/7/2008
|
TOTAL NET ASSETS
|
|
$1,311,102
|
NET ASSET VALUE
|
|
$13.11
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
8
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS HANG SENG CHINA ENTERPRISES INDEX FUND
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly five and a half months between its inception date on May 14, 2008, and the end of the fiscal year on October 31, 2008, the total
return of the NETS Hang Seng China Enterprises Index Fund was -51.68% at NAV. The Fund sought to track the return of its benchmark, the Hang Seng China Enterprises Index, which posted a return of -51.72% for the same period. The Index consists
of H-Shares of Chinese enterprises traded primarily on the Stock Exchange of Hong Kong weighted according to a free-float adjusted, market-capitalization weighted methodology with a 15% cap on individual stock weights.
Market performance reflected the effects of the global credit crisis and economic slowdown. Financials represented the largest sector weighting in the Fund as of the end
of October with a weighting of 55.6%. The Chinese stock market, which was among the best performing in the world in 2006 and through most of 2007, was not immune to the global economic turmoil and market selloff. The Hong Kong Dollar had little
impact on returns to a US investor contributing less than -1% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-51.68%
|
|
-51.20%
|
|
-51.72%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/14/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/19/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A
$10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The Hang Seng China Enterprises Index is a free-float adjusted capitalization-weighted stock market index of Chinese enterprises traded primarily on
the Stock Exchange of Hong Kong.
Performance of a $10,000 investment, with dividend
reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
SNO
|
INCEPTION DATE
|
|
5/14/2008
|
TOTAL NET ASSETS
|
|
$1,207,640
|
NET ASSET VALUE
|
|
$12.08
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.51%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
9
|
|
NETS FUNDS
|
NETS FUNDS
NETS HANG SENG INDEX FUND (HONG KONG)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly seven months between its inception date on April 11, 2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS Hang Seng Index Fund (Hong Kong)
was -41.72% NAV. The Fund sought to track the return of its benchmark, the Hang Seng Index, which posted a return of -41.83% for the same period. The Index is a free-float adjusted market capitalization-weighted index with a 15% cap on individual
stock weights consisting of stocks of the largest companies traded primarily on the Stock Exchange of Hong Kong.
Market performance reflected the effects
of the global credit crisis and economic slowdown. Financials represented the largest sector weighting in the Fund as of the end of October 2008 with a weighting of 43.7%. Bank of East Asia Ltd. and Hang Seng Bank Ltd. both saw significant price
pressure in late September and early October 2008, which was eased when the Hong Kong government pledged support for the banks. The Hong Kong Dollar had little impact on returns to a US investor contributing less than -1% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-41.72%
|
|
-40.44%
|
|
-41.83%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 4/11/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(4/16/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The Hang Seng Index is a free-float adjusted market capitalization-weighted stock index comprised of the largest companies of the Hong Kong stock
market and is one of the main indicators of the overall market performance in Hong Kong.
Performance of a $10,000 investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
HKG
|
INCEPTION DATE
|
|
4/11/2008
|
TOTAL NET ASSETS
|
|
$1,456,960
|
NET ASSET VALUE
|
|
$14.57
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
10
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS ISEQ 20 INDEX FUND (IRELAND)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly four and a half months between its inception date on June 16, 2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS ISEQ 20 Index Fund
(Ireland) was -54.88% at NAV. The Fund sought to track the return of its benchmark, the ISEQ 20 Index, which posted a return of -55.00% for the same period. The Index consists of 20 of the most liquid and largest stocks traded on the Irish
Stock Exchange.
Market performance reflected the effects of the global credit crisis and economic slowdown. In late September, the Irish government took
action to stabilize a reeling banking system by guaranteeing liabilities of the main Irish banks and increasing the deposit insurance threshold. The moves were effective and seem to have restored confidence in the financial sector.
As of October 31, 2008, the three largest sectors in the Fund were Materials (24.5%), Industrials (21.8%) and Financials (20%) creating a balanced
breakdown, though all three sectors had negative returns. The depreciation of the Euro from Fund inception through the end of October hurt US investors and contributed roughly -18.0% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-54.88%
|
|
-54.28%
|
|
-55.00%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 6/16/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(6/19/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The ISEQ 20
®
represents the 20 most liquid and largest capped equities quoted on the Irish Stock Exchange of which only free-float
shares are included in index calculation.
Performance of a $10,000 investment, with
dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
IQE
|
INCEPTION DATE
|
|
6/16/2008
|
TOTAL NET ASSETS
|
|
$1,124,847
|
NET ASSET VALUE
|
|
$11.25
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
11
|
|
NETS FUNDS
|
NETS FUNDS
NETS PSI 20
®
INDEX FUND (PORTUGAL)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly five and a half months between its inception date on May 21,
2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS PSI 20
®
Index Fund (Portugal) was -53.16%. The Fund sought to track the return of its
benchmark, the PSI 20
®
Index, which posted a return of -52.83% for the same period. The Index is a free-float adjusted, market capitalization-weighted index consisting of the 20 largest and
most liquid shares of companies listed on the Portuguese Main Market.
Market performance reflected the effects of the global credit crisis and economic
slowdown. Portugal has had less government intervention in the financial system than other countries in the European Union, but did need to step up state guarantees on deposits in late September in response to other European Union countries offering
guarantees and concerns that money would flow out of Portugal if the guarantees were not matched. The depreciation of the Euro from Fund inception through the end of October hurt US investors and contributed roughly -20% to the return of the index.
Nearly one quarter of Fund losses occurred in the financial sector which comprises 15.2% of the index. The largest name in the sector, Banco Comercial
Portugues, fell 56.6% on a series of poor earnings reports and widespread panic across financial markets.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-53.16%
|
|
-52.28%
|
|
-52.83%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/21/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/27/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
|
|
The PSI 20
®
represents the 20 largest and most liquid share issues of companies listed on the Portuguese Main Market. The
PSI 20
®
constituent weights are adjusted for free float and are limited to 15% of the index capitalization on the periodic review date.
Performance of a $10,000 investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
LIS
|
INCEPTION DATE
|
|
5/21/2008
|
TOTAL NET ASSETS
|
|
$1,170,557
|
NET ASSET VALUE
|
|
$11.71
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
12
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS S&P/ASX 200 INDEX FUND (AUSTRALIA)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly seven months between its inception date on April 4, 2008, and the end of the fiscal year on October 31, 2008, the total return of the
NETS S&P/ASX 200 Index Fund (Australia) was -47.36% at net asset value (NAV). The Fund sought to track the return of its benchmark, the S&P/ASX 200 Index, which posted a return of -47.50% for the same period. The Index is a
float-adjusted, market capitalization-weighted index consisting of the largest 200 stocks listed on the Australian Stock Exchange.
Market performance
reflected the effects of the global credit crisis and economic slowdown. Financials represented the largest sector weighting in the Fund as of the end of October 2008 with a weighting of 38.2%. Banks have been at the center of the financial crisis
that has gripped the global economy since mid-2007, and Australian banks have been no exception. The share prices of the four largest domestic banks, Australia and New Zealand Banking Group, Ltd. Bank, National Australia Bank Ltd., Commonwealth Bank
of Australia and Westpac Banking Corp., which together account for 54.0% of assets in the sector, were down by 56.0% from their November 2007 highs which brought down the overall performance of the Fund.
The depreciation of the Australian dollar from Fund inception through the end of October 2008 hurt US investors and contributed roughly -28% to the return of the Fund.
The depreciation of the Australian dollar is attributed largely to poor economic conditions, lower commodity prices and falling domestic interest rates.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
|
|
|
-47.36%
|
|
-46.52%
|
|
-47.50%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 4/4/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/9/08),
the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The S&P/ASX 200 Index is a float-adjusted, market capitalization-weighted index consisting of the largest 200 stocks listed on the Australian
Stock Exchange.
Performance of a $10,000 investment, with dividend reinvested, from
inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
AUS
|
INCEPTION DATE
|
|
4/4/2008
|
TOTAL NET ASSETS
|
|
$1,315,901
|
NET ASSET VALUE
|
|
$13.16
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
13
|
|
NETS FUNDS
|
NETS FUNDS
NETS S&P/MIB INDEX FUND (ITALY)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly six months between its inception date on May 7, 2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS S&P/MIB Index Fund (Italy) was
-47.08% at NAV. The Fund sought to track the return of its benchmark, the S&P/MIB Index, which posted a return of -46.76% for the same period. The Index is a free float adjusted, market capitalization-weighted index consisting of stocks traded
primarily on the Borsa Italiana.
Market performance reflected the effects of the global credit crisis and economic slowdown. Financials represented the
largest sector weighting in the Fund as of the end of October with a weighting of 45.3%. Italy has had less government intervention in its financial system than other countries in the European Union, but did need to step up state guarantees on
deposits in late September 2008 in response to other European Union countries offering guarantees and concerns that money would flow out of Italy if the guarantees were not matched. The depreciation of the Euro from Fund inception through the end of
October 2008 hurt US investors and contributed roughly -18.0% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-47.08%
|
|
-47.04%
|
|
-46.76%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/7/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/12/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The S&P/MIB Index is a free-float adjusted market capitalization-weighted index measuring the performance of 40 equities in Italy and seeks to
replicate the broad sector weights of the Italian stock market.
Performance of a
$10,000 investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
ITL
|
INCEPTION DATE
|
|
5/7/2008
|
TOTAL NET ASSETS
|
|
$1,322,549
|
NET ASSET VALUE
|
|
$13.23
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
14
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS TA-25 INDEX FUND (ISRAEL)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly five and a half months between its inception date on May 21, 2008, and the end of the fiscal year on October 31, 2008, the total return of the NETS TA-25 Index Fund (Israel)
was -41.48% at NAV. The Fund sought to track the return of its benchmark, the TA-25 Index, which posted a return of -40.80% for the same period. The Index consists of the 25 largest shares traded on the Tel-Aviv Stock Exchange. The shares in the
Underlying Index must comply with requirements of liquidity and public flotation.
Market performance reflected the effects of the global credit crisis and
economic slowdown. Financials represented the largest sector weighting in the Fund as of the end of October 2008 with a weighting of 25.9%. Although many Israeli banks had less exposure to sub-prime mortgage debt, the impact of financial turmoil
around the world did not spare Israel. The depreciation of the Israeli Sheckel from Fund inception through the end of October 2008 hurt US investors and contributed roughly -11.0% to the return of the Fund.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-41.48%
|
|
-40.32%
|
|
-40.80%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 5/21/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(5/27/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The Tel-Aviv 25 Index is comprised of stocks of 25 of the largest companies traded primarily on the Tel-Aviv Stock Exchange.
Performance of a $10,000 investment, with dividend reinvested, from inception date through October
31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
TAV
|
INCEPTION DATE
|
|
5/21/2008
|
TOTAL NET ASSETS
|
|
$1,463,552
|
NET ASSET VALUE
|
|
$14.64
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.70%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
15
|
|
NETS FUNDS
|
NETS FUNDS
NETS TOKYO STOCK EXCHANGE REIT INDEX FUND
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly two months between its inception date on September 3, 2008, and the end of the
fiscal year on October 31, 2008, the total return of the NETS Tokyo Stock Exchange REIT Index Fund was -19.88% at NAV. The Fund sought to track the return of its benchmark, the Tokyo Stock Exchange REIT Index, which posted a return of
-19.86% for the same period. The Index is a free-float adjusted market capitalization-weighted index consisting of stocks of all of the REITS traded primarily on the Tokyo Stock Exchange and is calculated using the same methodology used for
calculation of the Tokyo Stock Price Index (TOPIX
®
).
Market performance reflected the effects
of the global credit crisis and economic slowdown. The Tokyo Stock Exchange REIT Index has fallen along with the equity market in Japan and is down 57% as of October 31, 2008 from a mid-2007 peak after rallying for several years which in return
had a negative impact on the Fund. This decline is attributed to the slowing of the global and Japanese economies which affected the countrys real estate market as vacancy rates increased, demand for office space eased, rental prices declined,
and the availability of credit decreased.
The appreciation of the Yen from Fund inception through the end of October 2008 helped US investors and
contributed roughly +9% to the return of the Fund. The Yen has been one of the few currencies that did not depreciate against the US dollar through the financial crisis.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-19.88%
|
|
-18.16%
|
|
-19.86%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 9/3/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund (9/8/08),
the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A $10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The Tokyo Stock Exchange REIT Index is a free-float adjusted market capitalization-weighted index consisting of stocks of all the REITS traded
primarily on the Tokyo Stock Exchange.
Performance of a $10,000 investment, with
dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
JRE
|
INCEPTION DATE
|
|
9/3/2008
|
TOTAL NET ASSETS
|
|
$2,003,252
|
NET ASSET VALUE
|
|
$20.03
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
NETS FUNDS
|
|
16
|
|
ANNUAL REPORT
|
NETS FUNDS
NETS TOPIX
®
INDEX FUND (JAPAN)
PORTFOLIO MANAGEMENT COMMENTARY
For the period of roughly seven months between its inception date on April 10, 2008, and
the end of the fiscal year on October 31, 2008, the total return of the NETS Topix
®
Index Fund (Japan) was -28.08% at NAV. The Fund sought to track the return of its benchmark,
the TOPIX
®
Index, which posted a return of -28.65% for the same period. The Index is a free float adjusted, market capitalization-weighted index mainly consisting of over 1,500 stocks of
the largest Japanese companies traded primarily on the Tokyo Stock Exchange.
Market performance reflected the effects of the global credit crisis and
economic slowdown. Financials represented the second largest sector weighting in the Fund as of the end of October 2008 with a weighting of 19.3%. Japanese banks avoided a lot of direct exposure to the sub prime mortgage crisis, but were
nevertheless impacted by the broad based financial turmoil around the world.
The appreciation of the Yen from Fund inception through the end of October
2008 helped US investors and contributed roughly +3% to the return of the Fund. The Yen has been one of the few currencies that did not depreciate against the US dollar through the financial crisis.
INVESTMENT PERFORMANCE
|
|
|
|
|
CUMULATIVE TOTAL RETURN
for periods ended October 31, 2008
|
FUND NAV
SINCE INCEPTION
|
|
MARKET PRICE
SINCE INCEPTION
|
|
INDEX NAV
SINCE INCEPTION
|
-28.08%
|
|
-22.12%
|
|
-28.65%
|
Performance quoted represents past performance and does not guarantee future results. Investment
return and principal value will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most
recent month-end is available at www.netsetfs.com.
The Funds per share net asset value of NAV is the value of one
share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to
calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the
Funds NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.
Cumulative Total Returns represent the total change in value of an investment over the period(s) indicated and are calculated from an
inception date of 4/10/2008. Since shares of the Fund did not trade in the secondary market until several days after the Funds inception, for the period from inception to the first day of secondary market trading in shares of the Fund
(4/16/08), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns.
GROWTH OF A
$10,000 INVESTMENT AT NET ASSET VALUE
|
|
|
|
|
The TOPIX
®
Index is a free-float adjusted, market capitalization-weighted index consisting of over 1,500 of the largest Japanese
companies that are listed on the Tokyo Stock Exchange.
Performance of a $10,000
investment, with dividend reinvested, from inception date through October 31, 2008.
|
|
PORTFOLIO MANAGERS
|
|
|
|
CHAD RAKVIN
With Northern Trust since 2004
|
|
SHAUN MURPHY
With Northern Trust since 2004
|
|
|
|
FUND FACTS
(as of 10/31/08)
|
|
|
TICKER SYMBOL
|
|
TYI
|
INCEPTION DATE
|
|
4/10/2008
|
TOTAL NET ASSETS
|
|
$2,697,711
|
NET ASSET VALUE
|
|
$17.98
|
DIVIDEND SCHEDULE
|
|
ANNUAL
|
EXPENSE RATIO
|
|
0.47%
|
|
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance reflects reinvestment of all dividends and
capital gains distributions. Index returns reflect the reinvestment of dividends but do not reflect any management fees, transaction costs or other expenses that would be incurred by a fund, or brokerage commissions on transactions in Fund shares.
Such fees, expenses and commissions reduce returns. Index returns do not represent Fund returns. One cannot invest directly in an index.
|
|
|
|
|
|
ANNUAL REPORT
|
|
17
|
|
NETS FUNDS
|
NETS FUNDS
PRINCIPAL INVESTMENT STRATEGIES AND RISKS
|
OCTOBER 31, 2008
|
This is not a complete list of risks that may
affect the NETS Funds. For additional information concerning the risks applicable to the NETS Funds, please see the Funds prospectus.
Each of the NETS Funds is an index fund that seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of a particular index (Underlying Index). Each Underlying Index
is a group of securities that the sponsor of an index selects as representative of a specific market, market segment or industry sector. Each index provider selects the relative weightings of the securities in the index.
REPRESENTATIVE SAMPLING.
Each of the NETS Funds, except for the NETS CAC40
®
Index Fund (France), NETS FTSE 100 Index Fund (United Kingdom) and NETS
S&P/ASX 200 Index Fund (Australia), use representative sampling as part of their investment strategy. Representative sampling is a technique whereby the Fund invests in a representative sample of securities in the relevant Underlying Index.
Funds that use representative sampling may or may not hold all of the securities that are included in the Underlying Index.
CORRELATION.
The performance of a Fund and its Underlying Index may vary somewhat due to transaction costs, asset valuation, foreign currency valuations, market impact,
corporate actions, legal restrictions and timing variances.
INDUSTRY CONCENTRATION.
The NETS Tokyo Stock Exchange REIT Index Fund concentrates its investments in the real estate industry. The performance of real estate and real estate investment trust securities will be affected by factors
affecting the value of real estate and earnings of companies engaged in real estate activities and the real estate sector generally. The remaining NETS Funds will only concentrate their investments to the extent that their Underlying Indexes
concentrate in the stocks of a particular industry or group of industries. Certain of the Funds may be concentrated in financial companies at times.
CURRENCY RISK.
Each Funds NAV is determined based on U.S.
dollars. Therefore, you may lose money if the local currency of a foreign market depreciates against the U.S. dollar.
FOREIGN SECURITY AND EMERGING MARKETS RISK.
Each Fund invests substantially all of its assets within the equity markets of a single country outside of the U.S. Foreign securities
are generally less liquid and subject to greater price volatility and sudden economic or political developments. The NETS Hang Seng China Enterprises Index Fund, NETS TA-25 Index Fund (Israel) and NETS FTSE/JSE Top 40 Index Fund
(South Africa) invest in emerging markets. The risks of foreign investment are heightened when an issuer is located in an emerging country.
GEOGRAPHIC AND COUNTRY RISK.
Each Fund concentrates its investments in a particular country and will be subject to general local economic, political and social
conditions associated with that particular country and/or the geographic region in which the country is located.
MARKET RISK.
Each Fund is subject to the risk that the value of its investments may go up or down in response to the prospects of individual issuers and/or general economic
conditions. Foreign markets may move in the opposite direction of U.S. markets. Shares of the Funds may trade at, above, or below their most recently calculated NAV.
NON-DIVERSIFICATION RISK.
Each Fund is classified as non-diversified, which means that it invests in
smaller numbers of companies than a more diversified fund. The less diversified a fund is the more susceptible it is to risks associated with issuers of securities in which it invests.
AFFILIATED OFFICERS.
Certain officers of the Trust are affiliated with the investment adviser to the JPMorgan
Prime Money Market Fund in which certain of the Funds are invested.
|
|
|
|
|
NETS FUNDS
|
|
18
|
|
ANNUAL REPORT
|
NETS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS AEX-
INDEX
®
FUND
(THE
NETHERLANDS)
|
|
|
NETS
BEL 20
®
INDEX FUND
(BELGIUM)
|
|
|
NETS
CAC40
®
INDEX FUND
(FRANCE)
|
|
|
NETS
DAX
®
INDEX
FUND
(GERMANY)
|
|
|
NETS FTSE
100 INDEX
FUND
(UNITED
KINGDOM)
|
|
|
NETS
FTSE/JSE
TOP 40
INDEX FUND
(SOUTH
AFRICA)
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at cost
|
|
$2,122,124
|
|
|
$2,401,615
|
|
|
$2,550,327
|
|
|
$2,539,271
|
|
|
$2,523,330
|
|
|
$2,367,209
|
|
Investments, at value
|
|
$1,104,046
|
|
|
$1,179,839
|
|
|
$1,492,452
|
|
|
$1,472,606
|
|
|
$1,520,512
|
|
|
$1,213,832
|
|
Cash
|
|
|
|
|
|
|
|
205
|
|
|
|
|
|
|
|
|
|
|
Foreign currencies, at value (cost $11,706, $266, $2,407, $242, $118 and $3,417, respectively)
|
|
10,453
|
|
|
263
|
|
|
2,261
|
|
|
240
|
|
|
116
|
|
|
3,417
|
|
Receivable for securities sold
|
|
213,909
|
|
|
118,574
|
|
|
|
|
|
80,924
|
|
|
|
|
|
67,950
|
|
Receivable from investment adviser
|
|
795
|
|
|
796
|
|
|
829
|
|
|
1,684
|
|
|
810
|
|
|
770
|
|
Dividend income receivable
|
|
450
|
|
|
16
|
|
|
1
|
|
|
1
|
|
|
3,535
|
|
|
1
|
|
Receivable for foreign tax reclaimable
|
|
66
|
|
|
1,629
|
|
|
3,997
|
|
|
7,572
|
|
|
119
|
|
|
53
|
|
Total Assets
|
|
1,329,719
|
|
|
1,301,117
|
|
|
1,499,745
|
|
|
1,563,027
|
|
|
1,525,092
|
|
|
1,286,023
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on forward foreign currency exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for securities purchased
|
|
184,823
|
|
|
115,998
|
|
|
|
|
|
74,321
|
|
|
|
|
|
38,093
|
|
Payable for fund shares redeemed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
499
|
|
|
525
|
|
|
629
|
|
|
1,064
|
|
|
624
|
|
|
697
|
|
Trustees fees
|
|
795
|
|
|
796
|
|
|
829
|
|
|
1,684
|
|
|
810
|
|
|
770
|
|
Total Liabilities
|
|
186,117
|
|
|
117,319
|
|
|
1,458
|
|
|
77,069
|
|
|
1,434
|
|
|
39,560
|
|
Net Assets
|
|
$1,143,602
|
|
|
$1,183,798
|
|
|
$1,498,287
|
|
|
$1,485,958
|
|
|
$1,523,658
|
|
|
$1,246,463
|
|
ANALYSIS OF NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital stock
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$2,471,891
|
|
|
$2,500,000
|
|
|
$2,500,000
|
|
Accumulated undistributed net investment income
|
|
19,346
|
|
|
12,752
|
|
|
62,152
|
|
|
121,121
|
|
|
49,302
|
|
|
68,887
|
|
Accumulated net realized loss
|
|
(356,406
|
)
|
|
(106,807
|
)
|
|
(4,942
|
)
|
|
(38,606
|
)
|
|
(22,579
|
)
|
|
(169,054
|
)
|
Net unrealized depreciation
|
|
(1,019,338
|
)
|
|
(1,222,147
|
)
|
|
(1,058,923
|
)
|
|
(1,068,448
|
)
|
|
(1,003,065
|
)
|
|
(1,153,370
|
)
|
Net Assets
|
|
$1,143,602
|
|
|
$1,183,798
|
|
|
$1,498,287
|
|
|
$1,485,958
|
|
|
$1,523,658
|
|
|
$1,246,463
|
|
Shares of Beneficial Interest Outstanding
($0.0001 par value, unlimited authorized)
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
Net Asset Value, Per Share
|
|
$11.44
|
|
|
$11.84
|
|
|
$14.98
|
|
|
$14.86
|
|
|
$15.24
|
|
|
$12.46
|
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
19
|
|
NETS FUNDS
|
NETS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS FTSE
SINGAPORE
STRAITS
TIMES INDEX
FUND
|
|
|
NETS HANG
SENG CHINA
ENTERPRISES
INDEX FUND
|
|
|
NETS
HANG SENG
INDEX FUND
(HONG
KONG)
|
|
|
NETS ISEQ
20 INDEX
FUND
(IRELAND)
|
|
|
NETS PSI
20
®
INDEX
FUND
(PORTUGAL)
|
|
|
NETS
S&P/ASX
200 INDEX
FUND
(AUSTRALIA)
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at cost
|
|
$2,242,803
|
|
|
$2,463,560
|
|
|
$2,527,092
|
|
|
$1,727,533
|
|
|
$1,857,451
|
|
|
$2,519,059
|
|
Investments, at value
|
|
$1,263,148
|
|
|
$1,208,850
|
|
|
$1,446,000
|
|
|
$1,079,573
|
|
|
$1,129,231
|
|
|
$1,300,595
|
|
Cash
|
|
|
|
|
|
|
|
226
|
|
|
38
|
|
|
|
|
|
|
|
Foreign currencies, at value (cost $13,402, $11,459, $10,636, $7,681, $21,412 and $21,848, respectively)
|
|
13,069
|
|
|
11,503
|
|
|
10,657
|
|
|
7,472
|
|
|
17,894
|
|
|
18,999
|
|
Receivable for securities sold
|
|
144,437
|
|
|
51,761
|
|
|
|
|
|
397,577
|
|
|
313,072
|
|
|
|
|
Receivable from investment adviser
|
|
817
|
|
|
754
|
|
|
782
|
|
|
903
|
|
|
733
|
|
|
846
|
|
Dividend income receivable
|
|
769
|
|
|
204
|
|
|
707
|
|
|
3,793
|
|
|
1
|
|
|
511
|
|
Receivable for foreign tax reclaimable
|
|
|
|
|
|
|
|
|
|
|
131
|
|
|
504
|
|
|
334
|
|
Total Assets
|
|
1,422,240
|
|
|
1,273,072
|
|
|
1,458,372
|
|
|
1,489,487
|
|
|
1,461,435
|
|
|
1,321,285
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on forward foreign currency exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for securities purchased
|
|
109,745
|
|
|
64,096
|
|
|
|
|
|
363,269
|
|
|
289,624
|
|
|
3,963
|
|
Payable for fund shares redeemed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
577
|
|
|
582
|
|
|
630
|
|
|
468
|
|
|
521
|
|
|
575
|
|
Trustees fees
|
|
816
|
|
|
754
|
|
|
782
|
|
|
903
|
|
|
733
|
|
|
846
|
|
Total Liabilities
|
|
111,138
|
|
|
65,432
|
|
|
1,412
|
|
|
364,640
|
|
|
290,878
|
|
|
5,384
|
|
Net Assets
|
|
$1,311,102
|
|
|
$1,207,640
|
|
|
$1,456,960
|
|
|
$1,124,847
|
|
|
$1,170,557
|
|
|
$1,315,901
|
|
ANALYSIS OF NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital stock
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$2,500,000
|
|
Accumulated undistributed net investment income
|
|
36,203
|
|
|
27,509
|
|
|
44,946
|
|
|
18,769
|
|
|
5,287
|
|
|
42,465
|
|
Accumulated net realized loss
|
|
(245,116
|
)
|
|
(65,202
|
)
|
|
(6,914
|
)
|
|
(745,381
|
)
|
|
(602,894
|
)
|
|
(5,291
|
)
|
Net unrealized depreciation
|
|
(979,985
|
)
|
|
(1,254,667
|
)
|
|
(1,081,072
|
)
|
|
(648,541
|
)
|
|
(731,836
|
)
|
|
(1,221,273
|
)
|
Net Assets
|
|
$1,311,102
|
|
|
$1,207,640
|
|
|
$1,456,960
|
|
|
$1,124,847
|
|
|
$1,170,557
|
|
|
$1,315,901
|
|
Shares of Beneficial Interest Outstanding
($0.0001 par value, unlimited authorized)
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
Net Asset Value, Per Share
|
|
$13.11
|
|
|
$12.08
|
|
|
$14.57
|
|
|
$11.25
|
|
|
$11.71
|
|
|
$13.16
|
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
20
|
|
ANNUAL REPORT
|
NETS FUNDS
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS
S&P/MIB
INDEX FUND
(ITALY)
|
|
|
NETS
TA-25
INDEX FUND
(ISRAEL)
|
|
|
NETS
TOKYO STOCK
EXCHANGE
REIT INDEX
FUND
|
|
|
NETS
TOPIX
®
INDEX FUND
(JAPAN)
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at cost
|
|
$2,208,437
|
|
|
$2,457,367
|
|
|
$2,469,237
|
|
|
$3,767,364
|
|
Investments, at value
|
|
$1,273,887
|
|
|
$1,443,030
|
|
|
$1,975,160
|
|
|
$2,659,816
|
|
Cash
|
|
|
|
|
|
|
|
33
|
|
|
|
|
Foreign currencies, at value (cost $4,557,
$8,845, $2,775 and $43,855,
respectively)
|
|
3,962
|
|
|
8,856
|
|
|
2,836
|
|
|
41,639
|
|
Receivable for securities sold
|
|
202,155
|
|
|
78,883
|
|
|
33,632
|
|
|
|
|
Receivable from investment adviser
|
|
779
|
|
|
878
|
|
|
873
|
|
|
5,521
|
|
Dividend income receivable
|
|
1
|
|
|
3,510
|
|
|
23,149
|
|
|
109,652
|
|
Receivable for foreign tax reclaimable
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
1,480,784
|
|
|
1,535,157
|
|
|
2,035,683
|
|
|
2,816,628
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on forward foreign currency
exchange contracts
|
|
|
|
|
|
|
|
|
|
|
472
|
|
Payable for securities purchased
|
|
156,881
|
|
|
69,775
|
|
|
30,756
|
|
|
|
|
Payable for fund shares redeemed
|
|
|
|
|
|
|
|
|
|
|
109,411
|
|
Payable to affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
575
|
|
|
952
|
|
|
802
|
|
|
3,513
|
|
Trustees fees
|
|
779
|
|
|
878
|
|
|
873
|
|
|
5,521
|
|
Total Liabilities
|
|
158,235
|
|
|
71,605
|
|
|
32,431
|
|
|
118,917
|
|
Net Assets
|
|
$1,322,549
|
|
|
$1,463,552
|
|
|
$2,003,252
|
|
|
$2,697,711
|
|
ANALYSIS OF NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital stock
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$2,500,000
|
|
|
$3,785,427
|
|
Accumulated undistributed net investment income
|
|
84,476
|
|
|
24,055
|
|
|
21,116
|
|
|
80,682
|
|
Accumulated net realized loss
|
|
(326,782
|
)
|
|
(46,403
|
)
|
|
(24,404
|
)
|
|
(66,534
|
)
|
Net unrealized depreciation
|
|
(935,145
|
)
|
|
(1,014,100
|
)
|
|
(493,460
|
)
|
|
(1,101,864
|
)
|
Net Assets
|
|
$1,322,549
|
|
|
$1,463,552
|
|
|
$2,003,252
|
|
|
$2,697,711
|
|
Shares of Beneficial Interest Outstanding
($0.0001 par value, unlimited authorized)
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
150,000
|
|
Net Asset Value, Per Share
|
|
$13.23
|
|
|
$14.64
|
|
|
$20.03
|
|
|
$17.98
|
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
21
|
|
NETS FUNDS
|
NETS FUNDS
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS AEX-
INDEX
®
FUND
(THE
NETHERLANDS)
(1)
|
|
|
NETS
BEL 20
®
INDEX FUND
(BELGIUM)
(2)
|
|
|
NETS
CAC40
®
INDEX FUND
(FRANCE)
(3)
|
|
|
NETS
DAX
®
INDEX
FUND
(GERMANY)
(4)
|
|
|
NETS FTSE
100 INDEX
FUND
(UNITED
KINGDOM)
(5)
|
|
|
NETS
FTSE/JSE
TOP 40
INDEX FUND
(SOUTH
AFRICA)
(6)
|
|
INVESTMENT INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend income
|
|
$29,258
|
|
|
$23,185
|
|
|
$81,659
|
|
|
$158,624
|
|
|
$63,516
|
|
|
$80,128
|
|
Less foreign withholding taxes
|
|
(4,518
|
)
|
|
(2,996
|
)
|
|
(12,184
|
)
|
|
(22,937
|
)
|
|
(4,956
|
)
|
|
(716
|
)
|
Total Investment Income
|
|
24,740
|
|
|
20,189
|
|
|
69,475
|
|
|
135,687
|
|
|
58,560
|
|
|
79,412
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
4,321
|
|
|
4,345
|
|
|
5,762
|
|
|
11,640
|
|
|
5,922
|
|
|
6,323
|
|
Trustee fees and expenses
|
|
1,763
|
|
|
1,753
|
|
|
1,827
|
|
|
3,665
|
|
|
1,799
|
|
|
1,738
|
|
Total Expenses
|
|
6,084
|
|
|
6,098
|
|
|
7,589
|
|
|
15,305
|
|
|
7,721
|
|
|
8,061
|
|
Less expenses reimbursed by investment adviser
|
|
(1,763
|
)
|
|
(1,753
|
)
|
|
(1,827
|
)
|
|
(3,665
|
)
|
|
(1,799
|
)
|
|
(1,738
|
)
|
Net Expenses
|
|
4,321
|
|
|
4,345
|
|
|
5,762
|
|
|
11,640
|
|
|
5,922
|
|
|
6,323
|
|
Net Investment Income
|
|
20,419
|
|
|
15,844
|
|
|
63,713
|
|
|
124,047
|
|
|
52,638
|
|
|
73,089
|
|
NET REALIZED AND UNREALIZED GAINS (LOSSES):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
(356,406
|
)
|
|
(106,807
|
)
|
|
(4,942
|
)
|
|
(104,074
|
)
|
|
(22,579
|
)
|
|
(169,054
|
)
|
Foreign currency transactions
|
|
(1,073
|
)
|
|
(3,092
|
)
|
|
(1,561
|
)
|
|
(2,926
|
)
|
|
(3,336
|
)
|
|
(4,202
|
)
|
In-kind redemptions
|
|
|
|
|
|
|
|
|
|
|
(979,702
|
)
|
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
(1,018,078
|
)
|
|
(1,221,776
|
)
|
|
(1,057,875
|
)
|
|
(1,066,665
|
)
|
|
(1,002,818
|
)
|
|
(1,153,377
|
)
|
Forward foreign currency exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Translation of other assets and liabilities denominated in foreign currencies
|
|
(1,260
|
)
|
|
(371
|
)
|
|
(1,048
|
)
|
|
(1,783
|
)
|
|
(247
|
)
|
|
7
|
|
Net Losses on Investments
|
|
(1,376,817
|
)
|
|
(1,332,046
|
)
|
|
(1,065,426
|
)
|
|
(2,155,150
|
)
|
|
(1,028,980
|
)
|
|
(1,326,626
|
)
|
Net Decrease in Net Assets Resulting from Operations
|
|
$(1,356,398
|
)
|
|
$(1,316,202
|
)
|
|
$(1,001,713
|
)
|
|
$(2,031,103
|
)
|
|
$(976,342
|
)
|
|
$(1,253,537
|
)
|
(1)
|
The NETS AEX-index
®
Fund (The Netherlands) commenced operations on May 14, 2008.
|
(2)
|
The NETS BEL 20
®
Index Fund (Belgium) commenced operations on May 14, 2008.
|
(3)
|
The NETS CAC40
®
Index Fund (France) commenced operations on April 11, 2008.
|
(4)
|
The NETS DAX
®
Index Fund (Germany) commenced operations on April 9, 2008.
|
(5)
|
The NETS FTSE 100 Index Fund (United Kingdom) commenced operations on April 4, 2008.
|
(6)
|
The NETS FTSE/JSE Top 40 Index Fund (South Africa) commenced operations on May 7, 2008.
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
22
|
|
ANNUAL REPORT
|
NETS FUNDS
FOR THE PERIODS ENDED OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS FTSE
SINGAPORE
STRAITS
TIMES INDEX
FUND
(1)
|
|
|
NETS HANG
SENG CHINA
ENTERPRISES
INDEX FUND
(2)
|
|
|
NETS
HANG SENG
INDEX FUND
(HONG
KONG)
(3)
|
|
|
NETS ISEQ
20 INDEX
FUND
(IRELAND)
(4)
|
|
|
NETS PSI
20
®
INDEX
FUND
(PORTUGAL)
(5)
|
|
|
NETS
S&P/ASX
200 INDEX
FUND
(AUSTRALIA)
(6)
|
|
INVESTMENT INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend income
|
|
$42,298
|
|
|
$32,848
|
|
|
$51,383
|
|
|
$23,555
|
|
|
$12,131
|
|
|
$54,829
|
|
Less foreign withholding taxes
|
|
(95
|
)
|
|
(576
|
)
|
|
(745
|
)
|
|
|
|
|
(1,816
|
)
|
|
(1,325
|
)
|
Total Investment Income
|
|
42,203
|
|
|
32,272
|
|
|
50,638
|
|
|
23,555
|
|
|
10,315
|
|
|
53,504
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
4,751
|
|
|
4,738
|
|
|
5,676
|
|
|
3,198
|
|
|
3,872
|
|
|
5,910
|
|
Trustee fees and expenses
|
|
1,767
|
|
|
1,707
|
|
|
1,774
|
|
|
903
|
|
|
1,671
|
|
|
1,866
|
|
Total Expenses
|
|
6,518
|
|
|
6,445
|
|
|
7,450
|
|
|
4,101
|
|
|
5,543
|
|
|
7,776
|
|
Less expenses reimbursed by
investment adviser
|
|
(1,767
|
)
|
|
(1,707
|
)
|
|
(1,774
|
)
|
|
(903
|
)
|
|
(1,671
|
)
|
|
(1,866
|
)
|
Net Expenses
|
|
4,751
|
|
|
4,738
|
|
|
5,676
|
|
|
3,198
|
|
|
3,872
|
|
|
5,910
|
|
Net Investment Income
|
|
37,452
|
|
|
27,534
|
|
|
44,962
|
|
|
20,357
|
|
|
6,443
|
|
|
47,594
|
|
NET REALIZED AND UNREALIZED GAINS (LOSSES):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
(245,116
|
)
|
|
(65,202
|
)
|
|
(6,914
|
)
|
|
(745,381
|
)
|
|
(602,894
|
)
|
|
(5,291
|
)
|
Foreign currency transactions
|
|
(1,249
|
)
|
|
(25
|
)
|
|
(16
|
)
|
|
(1,588
|
)
|
|
(1,156
|
)
|
|
(5,129
|
)
|
In-kind redemptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
(979,655
|
)
|
|
(1,254,710
|
)
|
|
(1,081,092
|
)
|
|
(647,960
|
)
|
|
(728,220
|
)
|
|
(1,218,464
|
)
|
Forward foreign currency exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Translation of other assets and liabilities denominated in foreign currencies
|
|
(330
|
)
|
|
43
|
|
|
20
|
|
|
(581
|
)
|
|
(3,616
|
)
|
|
(2,809
|
)
|
Net Losses on Investments
|
|
(1,226,350
|
)
|
|
(1,319,894
|
)
|
|
(1,088,002
|
)
|
|
(1,395,510
|
)
|
|
(1,335,886
|
)
|
|
(1,231,693
|
)
|
Net Decrease in Net Assets Resulting from Operations
|
|
$(1,188,898
|
)
|
|
$(1,292,360
|
)
|
|
$(1,043,040
|
)
|
|
$(1,375,153
|
)
|
|
$(1,329,443
|
)
|
|
$(1,184,099
|
)
|
(1)
|
The NETS FTSE Singapore Straits Times Index Fund commenced operations on May 7, 2008.
|
(2)
|
The NETS Hang Seng China Enterprises Index Fund commenced operations on May 14, 2008.
|
(3)
|
The NETS Hang Seng Index Fund (Hong Kong) commenced operations on April 11, 2008.
|
(4)
|
The NETS ISEQ 20 Index Fund (Ireland) commenced operations on June 16, 2008.
|
(5)
|
The NETS PSI 20
®
Index Fund (Portugal) commenced operations on May 21, 2008.
|
(6)
|
The NETS S&P/ASX 200 Index Fund (Australia) commenced operations on April 4, 2008.
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
23
|
|
NETS FUNDS
|
NETS FUNDS
STATEMENTS OF OPERATIONS
continued
|
FOR THE PERIODS ENDED OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS
S&P/MIB
INDEX FUND
(ITALY)
(1)
|
|
|
NETS
TA-25
INDEX FUND
(ISRAEL)
(2)
|
|
|
NETS
TOKYO STOCK
EXCHANGE
REIT INDEX
FUND
(3)
|
|
|
NETS
TOPIX
®
INDEX FUND
(JAPAN)
(4)
|
|
INVESTMENT INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend income
|
|
$107,080
|
|
|
$37,724
|
|
|
$24,336
|
|
|
$119,071
|
|
Less foreign withholding taxes
|
|
(15,627
|
)
|
|
(6,408
|
)
|
|
(1,699
|
)
|
|
(8,327
|
)
|
Total Investment Income
|
|
91,453
|
|
|
31,316
|
|
|
22,637
|
|
|
110,744
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
4,681
|
|
|
6,612
|
|
|
1,653
|
|
|
36,343
|
|
Trustee fees and expenses
|
|
1,736
|
|
|
1,851
|
|
|
873
|
|
|
11,679
|
|
Total Expenses
|
|
6,417
|
|
|
8,463
|
|
|
2,526
|
|
|
48,022
|
|
Less expenses reimbursed by
investment adviser
|
|
(1,736
|
)
|
|
(1,851
|
)
|
|
(873
|
)
|
|
(11,679
|
)
|
Net Expenses
|
|
4,681
|
|
|
6,612
|
|
|
1,653
|
|
|
36,343
|
|
Net Investment Income
|
|
86,772
|
|
|
24,704
|
|
|
20,984
|
|
|
74,401
|
|
NET REALIZED AND UNREALIZED
GAINS (LOSSES):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
(326,782
|
)
|
|
(46,403
|
)
|
|
(24,404
|
)
|
|
(66,534
|
)
|
Foreign currency transactions
|
|
(2,296
|
)
|
|
(649
|
)
|
|
132
|
|
|
6,281
|
|
In-kind redemptions
|
|
|
|
|
|
|
|
|
|
|
(2,970,083
|
)
|
Net change in unrealized appreciation
(depreciation) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
(934,550
|
)
|
|
(1,014,337
|
)
|
|
(494,077
|
)
|
|
(1,107,548
|
)
|
Forward foreign currency exchange
contracts
|
|
|
|
|
|
|
|
|
|
|
(472
|
)
|
Translation of other assets and
liabilities denominated in foreign
currencies
|
|
(595
|
)
|
|
237
|
|
|
617
|
|
|
6,156
|
|
Net Losses on Investments
|
|
(1,264,223
|
)
|
|
(1,061,152
|
)
|
|
(517,732
|
)
|
|
(4,132,200
|
)
|
Net Decrease in Net Assets Resulting
from Operations
|
|
$(1,177,451
|
)
|
|
$(1,036,448
|
)
|
|
$(496,748
|
)
|
|
$(4,057,799
|
)
|
(1)
|
The NETS S&P/MIB Index Fund (Italy) commenced operations on May 7, 2008.
|
(2)
|
The NETS TA-25 Index Fund (Israel) commenced operations on May 21, 2008.
|
(3)
|
The NETS Tokyo Stock Exchange REIT Index Fund commenced operations on September 3, 2008.
|
(4)
|
The NETS TOPIX
®
Index Fund (Japan) commenced operations on April 10, 2008.
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
24
|
|
ANNUAL REPORT
|
NETS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
|
FOR THE PERIODS ENDED OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS AEX-
INDEX
®
FUND
(THE
NETHERLANDS)
2008
(1)
|
|
|
NETS
BEL 20
®
INDEX FUND
(BELGIUM)
2008
(2)
|
|
|
NETS
CAC40
®
INDEX FUND
(FRANCE)
2008
(3)
|
|
|
NETS
DAX
®
INDEX
FUND
(GERMANY)
2008
(4)
|
|
|
NETS FTSE
100 INDEX
FUND
(UNITED
KINGDOM)
2008
(5)
|
|
|
NETS
FTSE/JSE
TOP 40
INDEX FUND
(SOUTH
AFRICA)
2008
(6)
|
|
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$20,419
|
|
|
$15,844
|
|
|
$63,713
|
|
|
$124,047
|
|
|
$52,638
|
|
|
$73,089
|
|
Net realized losses
|
|
(357,479
|
)
|
|
(109,899
|
)
|
|
(6,503
|
)
|
|
(1,086,702
|
)
|
|
(25,915
|
)
|
|
(173,256
|
)
|
Net change in unrealized depreciation
|
|
(1,019,338
|
)
|
|
(1,222,147
|
)
|
|
(1,058,923
|
)
|
|
(1,068,448
|
)
|
|
(1,003,065
|
)
|
|
(1,153,370
|
)
|
Net Decrease in Net Assets Resulting from Operations
|
|
(1,356,398
|
)
|
|
(1,316,202
|
)
|
|
(1,001,713
|
)
|
|
(2,031,103
|
)
|
|
(976,342
|
)
|
|
(1,253,537
|
)
|
CAPITAL SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
5,000,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
Payments for shares redeemed
|
|
|
|
|
|
|
|
|
|
|
(1,482,939
|
)
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Capital Share Transactions
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
3,517,061
|
|
|
2,500,000
|
|
|
2,500,000
|
|
Total Increase in Net Assets
|
|
1,143,602
|
|
|
1,183,798
|
|
|
1,498,287
|
|
|
1,485,958
|
|
|
1,523,658
|
|
|
1,246,463
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
|
|
$1,143,602
|
|
|
$1,183,798
|
|
|
$1,498,287
|
|
|
$1,485,958
|
|
|
$1,523,658
|
|
|
$1,246,463
|
|
Accumulated Undistributed Net Investment Income
|
|
$19,346
|
|
|
$12,752
|
|
|
$62,152
|
|
|
$121,121
|
|
|
$49,302
|
|
|
$68,887
|
|
SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold in-kind
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
200,000
|
|
|
100,000
|
|
|
100,000
|
|
Shares redeemed in-kind
|
|
|
|
|
|
|
|
|
|
|
(100,000
|
)
|
|
|
|
|
|
|
Shares outstanding, end of period
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
(1)
|
The NETS AEX-index
®
Fund (The Netherlands) commenced operations on May 14, 2008.
|
(2)
|
The NETS BEL 20
®
Index Fund (Belgium) commenced operations on May 14, 2008.
|
(3)
|
The NETS CAC40
®
Index Fund (France) commenced operations on April 11, 2008.
|
(4)
|
The NETS DAX
®
Index Fund (Germany) commenced operations on April 9, 2008.
|
(5)
|
The NETS FTSE 100 Index Fund (United Kingdom) commenced operations on April 4, 2008.
|
(6)
|
The NETS FTSE/JSE Top 40 Index Fund (South Africa) commenced operations on May 7, 2008.
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
25
|
|
NETS FUNDS
|
NETS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS
FTSE
SINGAPORE
STRAITS
TIMES INDEX
FUND
2008
(1)
|
|
|
NETS HANG
SENG CHINA
ENTERPRISES
INDEX FUND
2008
(2)
|
|
|
NETS
HANG SENG
INDEX FUND
(HONG
KONG)
2008
(3)
|
|
|
NETS ISEQ
20 INDEX
FUND
(IRELAND)
2008
(4)
|
|
|
NETS PSI
20
®
INDEX
FUND
(PORTUGAL)
2008
(5)
|
|
|
NETS
S&P/ASX
200 INDEX
FUND
(AUSTRALIA)
2008
(6)
|
|
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$37,452
|
|
|
$27,534
|
|
|
$44,962
|
|
|
$20,357
|
|
|
$6,443
|
|
|
$47,594
|
|
Net realized losses
|
|
(246,365
|
)
|
|
(65,227
|
)
|
|
(6,930
|
)
|
|
(746,969
|
)
|
|
(604,050
|
)
|
|
(10,420
|
)
|
Net change in unrealized depreciation
|
|
(979,985
|
)
|
|
(1,254,667
|
)
|
|
(1,081,072
|
)
|
|
(648,541
|
)
|
|
(731,836
|
)
|
|
(1,221,273
|
)
|
Net Decrease in Net Assets Resulting from Operations
|
|
(1,188,898
|
)
|
|
(1,292,360
|
)
|
|
(1,043,040
|
)
|
|
(1,375,153
|
)
|
|
(1,329,443
|
)
|
|
(1,184,099
|
)
|
CAPITAL SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
Payments for shares redeemed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Capital Share Transactions
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
Total Increase in Net Assets
|
|
1,311,102
|
|
|
1,207,640
|
|
|
1,456,960
|
|
|
1,124,847
|
|
|
1,170,557
|
|
|
1,315,901
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
|
|
$1,311,102
|
|
|
$1,207,640
|
|
|
$1,456,960
|
|
|
$1,124,847
|
|
|
$1,170,557
|
|
|
$1,315,901
|
|
Accumulated Undistributed Net Investment Income
|
|
$36,203
|
|
|
$27,509
|
|
|
$44,946
|
|
|
$18,769
|
|
|
$5,287
|
|
|
$42,465
|
|
SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold in-kind
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
Shares redeemed in-kind
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding, end of period
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
(1)
|
The NETS FTSE Singapore Straits Times Index Fund commenced operations on May 7, 2008.
|
(2)
|
The NETS Hang Seng China Enterprises Index Fund commenced operations on May 14, 2008.
|
(3)
|
The NETS Hang Seng Index Fund (Hong Kong) commenced operations on April 11, 2008.
|
(4)
|
The NETS ISEQ 20 Index Fund (Ireland) commenced operations on June 16, 2008.
|
(5)
|
The NETS PSI 20
®
Index Fund (Portugal) commenced operations on May 21, 2008.
|
(6)
|
The NETS S&P/ASX 200 Index Fund (Australia) commenced operations on April 4, 2008.
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
26
|
|
ANNUAL REPORT
|
NETS FUNDS
FOR THE PERIODS ENDED OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS
S&P/MIB
INDEX FUND
(ITALY)
2008
(1)
|
|
|
NETS
TA-25
INDEX FUND
(ISRAEL)
2008
(2)
|
|
|
NETS
TOKYO STOCK
EXCHANGE
REIT INDEX
FUND
2008
(3)
|
|
|
NETS
TOPIX
®
INDEX FUND
(JAPAN)
2008
(4)
|
|
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$86,772
|
|
|
$24,704
|
|
|
$20,984
|
|
|
$74,401
|
|
Net realized losses
|
|
(329,078
|
)
|
|
(47,052
|
)
|
|
(24,272
|
)
|
|
(3,030,336
|
)
|
Net change in unrealized depreciation
|
|
(935,145
|
)
|
|
(1,014,100
|
)
|
|
(493,460
|
)
|
|
(1,101,864
|
)
|
Net Decrease in Net Assets Resulting from
Operations
|
|
(1,177,451
|
)
|
|
(1,036,448
|
)
|
|
(496,748
|
)
|
|
(4,057,799
|
)
|
CAPITAL SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
15,000,000
|
|
Payments for shares redeemed
|
|
|
|
|
|
|
|
|
|
|
(8,244,490
|
)
|
Net Increase in Net Assets Resulting from
Capital Share Transactions
|
|
2,500,000
|
|
|
2,500,000
|
|
|
2,500,000
|
|
|
6,755,510
|
|
Total Increase in Net Assets
|
|
1,322,549
|
|
|
1,463,552
|
|
|
2,003,252
|
|
|
2,697,711
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
|
|
$1,322,549
|
|
|
$1,463,552
|
|
|
$2,003,252
|
|
|
$2,697,711
|
|
Accumulated Undistributed Net Investment
Income
|
|
$84,476
|
|
|
$24,055
|
|
|
$21,116
|
|
|
$80,682
|
|
SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold in-kind
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
600,000
|
|
Shares redeemed in-kind
|
|
|
|
|
|
|
|
|
|
|
(450,000
|
)
|
Shares outstanding, end of period
|
|
100,000
|
|
|
100,000
|
|
|
100,000
|
|
|
150,000
|
|
(1)
|
The NETS S&P/MIB Index Fund (Italy) commenced operations on May 7, 2008.
|
(2)
|
The NETS TA-25 Index Fund (Israel) commenced operations on May 21, 2008.
|
(3)
|
The NETS Tokyo Stock Exchange REIT Index Fund commenced operations on September 3, 2008.
|
(4)
|
The NETS TOPIX
®
Index Fund (Japan) commenced operations on April 10, 2008.
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
27
|
|
NETS FUNDS
|
NETS FUNDS
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected per share data
|
|
NETS AEX-
INDEX
®
FUND
(THE
NETHERLANDS)
2008
(1)
|
|
|
NETS
BEL 20
®
INDEX FUND
(BELGIUM)
2008
(2)
|
|
|
NETS
CAC40
®
INDEX FUND
(FRANCE)
2008
(3)
|
|
|
NETS
DAX
®
INDEX
FUND
(GERMANY)
2008
(4)
|
|
|
NETS FTSE
100 INDEX
FUND
(UNITED
KINGDOM)
2008
(5)
|
|
|
NETS
FTSE/JSE
TOP 40
INDEX FUND
(SOUTH
AFRICA)
2008
(6)
|
|
Net Asset Value, Beginning of Period
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(7)
|
|
0.21
|
|
|
0.16
|
|
|
0.65
|
|
|
0.64
|
|
|
0.53
|
|
|
0.80
|
|
Net realized and unrealized loss
|
|
(13.77
|
)
|
|
(13.32
|
)
|
|
(10.67
|
)
|
|
(10.78
|
)
|
|
(10.29
|
)
|
|
(13.34
|
)
|
Total from Investment Operations
|
|
(13.56
|
)
|
|
(13.16
|
)
|
|
(10.02
|
)
|
|
(10.14
|
)
|
|
(9.76
|
)
|
|
(12.54
|
)
|
Net Asset Value, End of Period
|
|
$11.44
|
|
|
$11.84
|
|
|
$14.98
|
|
|
$14.86
|
|
|
$15.24
|
|
|
$12.46
|
|
Total Return (NAV)
(8)
|
|
(54.24
|
)%
|
|
(52.64
|
)%
|
|
(40.08
|
)%
|
|
(40.56
|
)%
|
|
(39.04
|
)%
|
|
(50.12
|
)%
(9)
|
Total Return (Market Price)
(10)
|
|
(54.64
|
)%
|
|
(53.72
|
)%
|
|
(39.28
|
)%
|
|
(39.16
|
)%
|
|
(50.00
|
)%
|
|
(48.36
|
)%
|
SUPPLEMENTAL DATA AND RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, in thousands, end of period
|
|
$1,144
|
|
|
$1,184
|
|
|
$1,498
|
|
|
$1,486
|
|
|
$1,524
|
|
|
$1,246
|
|
Ratio to average net assets of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of reimbursements
(11)
|
|
0.47
|
%
|
|
0.47
|
%
|
|
0.47
|
%
|
|
0.47
|
%
|
|
0.47
|
%
|
|
0.65
|
%
|
Expenses, before reimbursements
(11)
|
|
0.66
|
%
|
|
0.66
|
%
|
|
0.62
|
%
|
|
0.62
|
%
|
|
0.61
|
%
|
|
0.83
|
%
|
Net investment income, net of reimbursements
(11)
|
|
2.23
|
%
|
|
1.72
|
%
|
|
5.21
|
%
|
|
5.02
|
%
|
|
4.19
|
%
|
|
8.21
|
%
|
Net investment income, before reimbursements
(11)
|
|
2.04
|
%
|
|
1.53
|
%
|
|
5.06
|
%
|
|
4.87
|
%
|
|
4.05
|
%
|
|
8.03
|
%
|
Portfolio Turnover Rate
(12)
|
|
39
|
%
|
|
26
|
%
|
|
3
|
%
|
|
19
|
%
|
|
5
|
%
|
|
49
|
%
|
(1)
|
|
The NETS AEX-index
®
Fund (The Netherlands) commenced operations on May 14, 2008.
|
(2)
|
|
The NETS BEL 20
®
Index Fund (Belgium) commenced operations on May 14, 2008.
|
(3)
|
|
The NETS CAC40
®
Index Fund (France) commenced operations on April 11, 2008.
|
(4)
|
|
The NETS DAX
®
Index Fund (Germany) commenced operations on April 9, 2008.
|
(5)
|
|
The NETS FTSE 100 Index Fund (United Kingdom) commenced operations on April 4, 2008.
|
(6)
|
|
The NETS FTSE/JSE Top 40 Index Fund (South Africa) commenced operations on May 7, 2008.
|
(7)
|
|
Per share net investment income has been calculated using the average shares method.
|
(8)
|
|
Assumes initial investment is made at net asset value at the beginning of period, reinvestment of all dividends and distributions at net asset value during the period, and a complete
redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
|
(9)
|
|
In 2008, 0.38% of the Funds total return consists of a payment by the adviser for a benchmark tracking error. Excluding this item, total return would have been (50.40)%.
|
(10)
|
|
Assumes initial investment is made at market value at the beginning of period, reinvestment of all dividends and distributions at net asset value during the period, and a complete
redemption of the investment at market value at the end of the period. Total return is not annualized for periods less than one year. Market price is determined by using the midpoint between the highest bid and lowest offer on the stock exchange on
which the shares are listed for trading, as of the time the net asset value is calculated. Market price may be greater or less than net asset value.
|
(11)
|
|
Annualized for periods less than one year.
|
(12)
|
|
Portfolio turnover excludes in-kind transactions.
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
28
|
|
ANNUAL REPORT
|
NETS FUNDS
FOR THE PERIODS ENDED OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected per share data
|
|
NETS
FTSE
SINGAPORE
STRAITS
TIMES INDEX
FUND
2008
(1)
|
|
|
NETS HANG
SENG CHINA
ENTERPRISES
INDEX FUND
2008
(2)
|
|
|
NETS
HANG SENG
INDEX FUND
(HONG
KONG)
2008
(3)
|
|
|
NETS ISEQ
20 INDEX
FUND
(IRELAND)
2008
(4)
|
|
|
NETS PSI
20
®
INDEX
FUND
(PORTUGAL)
2008
(5)
|
|
|
NETS
S&P/ASX
200 INDEX
FUND
(AUSTRALIA)
2008
(6)
|
|
Net Asset Value, Beginning of Period
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(7)
|
|
0.38
|
|
|
0.28
|
|
|
0.46
|
|
|
0.21
|
|
|
0.06
|
|
|
0.48
|
|
Net realized and unrealized loss
|
|
(12.27
|
)
|
|
(13.20
|
)
|
|
(10.89
|
)
|
|
(13.96
|
)
|
|
(13.35
|
)
|
|
(12.32
|
)
|
Total from Investment Operations
|
|
(11.89
|
)
|
|
(12.92
|
)
|
|
(10.43
|
)
|
|
(13.75
|
)
|
|
(13.29
|
)
|
|
(11.84
|
)
|
Net Asset Value, End of Period
|
|
$13.11
|
|
|
$12.08
|
|
|
$14.57
|
|
|
$11.25
|
|
|
$11.71
|
|
|
$13.16
|
|
Total Return (NAV)
(8)
|
|
(47.56
|
)%
|
|
(51.68
|
)%
|
|
(41.72
|
)%
|
|
(54.88
|
)%
|
|
(53.16
|
)%
|
|
(47.36
|
)%
|
Total Return (Market Price)
(9)
|
|
(47.88
|
)%
|
|
(51.20
|
)%
|
|
(40.44
|
)%
|
|
(54.28
|
)%
|
|
(52.28
|
)%
|
|
(46.52
|
)%
|
SUPPLEMENTAL DATA AND RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, in thousands, end of period
|
|
$1,311
|
|
|
$1,208
|
|
|
$1,457
|
|
|
$1,125
|
|
|
$1,171
|
|
|
$1,316
|
|
Ratio to average net assets of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of reimbursements
(10)
|
|
0.47
|
%
|
|
0.51
|
%
|
|
0.47
|
%
|
|
0.47
|
%
|
|
0.47
|
%
|
|
0.47
|
%
|
Expenses, before reimbursements
(10)
|
|
0.65
|
%
|
|
0.70
|
%
|
|
0.62
|
%
|
|
0.61
|
%
|
|
0.68
|
%
|
|
0.62
|
%
|
Net investment income, net of reimbursements
(10)
|
|
3.72
|
%
|
|
2.97
|
%
|
|
3.73
|
%
|
|
3.01
|
%
|
|
0.79
|
%
|
|
3.79
|
%
|
Net investment income, before reimbursements
(10)
|
|
3.54
|
%
|
|
2.78
|
%
|
|
3.58
|
%
|
|
2.87
|
%
|
|
0.58
|
%
|
|
3.64
|
%
|
Portfolio Turnover Rate
(11)
|
|
33
|
%
|
|
9
|
%
|
|
4
|
%
|
|
64
|
%
|
|
55
|
%
|
|
3
|
%
|
(1)
|
|
The NETS FTSE Singapore Straits Times Index Fund commenced operations on May 7, 2008.
|
(2)
|
|
The NETS Hang Seng China Enterprises Index Fund commenced operations on May 14, 2008.
|
(3)
|
|
The NETS Hang Seng Index Fund (Hong Kong) commenced operations on April 11, 2008.
|
(4)
|
|
The NETS ISEQ 20 Index Fund (Ireland) commenced operations on June 16, 2008.
|
(5)
|
|
The NETS PSI 20
®
Index Fund (Portugal) commenced operations on May 21, 2008.
|
(6)
|
|
The NETS S&P/ASX 200 Index Fund (Australia) commenced operations on April 4, 2008.
|
(7)
|
|
Per share net investment income has been calculated using the average shares method.
|
(8)
|
|
Assumes initial investment is made at net asset value at the beginning of period, reinvestment of all dividends and distributions at net asset value during the period, and a complete
redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
|
(9)
|
|
Assumes initial investment is made at market value at the beginning of period, reinvestment of all dividends and distributions at net asset value during the period, and a complete
redemption of the investment at market value at the end of the period. Total return is not annualized for periods less than one year. Market price is determined by using the midpoint between the highest bid and lowest offer on the stock exchange on
which the shares are listed for trading, as of the time the net asset value is calculated. Market price may be greater or less than net asset value.
|
(10)
|
|
Annualized for periods less than one year.
|
(11)
|
|
Portfolio turnover excludes in-kind transactions.
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
29
|
|
NETS FUNDS
|
NETS FUNDS
FINANCIAL HIGHLIGHTS
continued
|
FOR THE PERIODS ENDED OCTOBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected per share data
|
|
NETS
S&P/MIB
INDEX FUND
(ITALY)
2008
(1)
|
|
|
NETS
TA-25
INDEX FUND
(ISRAEL)
2008
(2)
|
|
|
NETS
TOKYO STOCK
EXCHANGE
REIT INDEX
FUND
2008
(3)
|
|
|
NETS
TOPIX
®
INDEX FUND
(JAPAN)
2008
(4)
|
|
Net Asset Value, Beginning of Period
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
|
$25.00
|
|
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(5)
|
|
0.87
|
|
|
0.25
|
|
|
0.21
|
|
|
0.13
|
|
Net realized and unrealized loss
|
|
(12.64
|
)
|
|
(10.61
|
)
|
|
(5.18
|
)
|
|
(7.15
|
)
|
Total from Investment Operations
|
|
(11.77
|
)
|
|
(10.36
|
)
|
|
(4.97
|
)
|
|
(7.02
|
)
|
Net Asset Value, End of Period
|
|
$13.23
|
|
|
$14.64
|
|
|
$20.03
|
|
|
$17.98
|
|
Total Return (NAV)
(6)
|
|
(47.08
|
)%
|
|
(41.48
|
)%
|
|
(19.88
|
)%
|
|
(28.08
|
)%
|
Total Return (Market Price)
(7)
|
|
(47.04
|
)%
|
|
(40.32
|
)%
|
|
(18.16
|
)%
|
|
(22.12
|
)%
|
SUPPLEMENTAL DATA AND RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, in thousands, end of period
|
|
$1,323
|
|
|
$1,464
|
|
|
$2,003
|
|
|
$2,698
|
|
Ratio to average net assets of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of reimbursements
(8)
|
|
0.47
|
%
|
|
0.70
|
%
|
|
0.47
|
%
|
|
0.47
|
%
|
Expenses, before reimbursements
(8)
|
|
0.65
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|
0.62
|
%
|
Net investment income, net of reimbursements
(8)
|
|
8.74
|
%
|
|
2.62
|
%
|
|
5.99
|
%
|
|
0.96
|
%
|
Net investment income, before reimbursements
(8)
|
|
8.56
|
%
|
|
2.42
|
%
|
|
5.74
|
%
|
|
0.81
|
%
|
Portfolio Turnover Rate
(9)
|
|
36
|
%
|
|
22
|
%
|
|
2
|
%
|
|
2
|
%
|
(1)
|
|
The NETS S&P/MIB Index Fund (Italy) commenced operations on May 7, 2008.
|
(2)
|
|
The NETS TA-25 Index Fund (Israel) commenced operations on May 21, 2008.
|
(3)
|
|
The NETS Tokyo Stock Exchange REIT Index Fund commenced operations on September 3, 2008.
|
(4)
|
|
The NETS TOPIX
®
Index Fund (Japan) commenced operations on April 10, 2008.
|
(5)
|
|
Per share net investment income has been calculated using the average shares method.
|
(6)
|
|
Assumes initial investment is made at net asset value at the beginning of period, reinvestment of all dividends and distributions at net asset value during the period, and a complete
redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
|
(7)
|
|
Assumes initial investment is made at market value at the beginning of period, reinvestment of all dividends and distributions at net asset value during the period, and a complete
redemption of the investment at market value at the end of the period. Total return is not annualized for periods less than one year. Market price is determined by using the midpoint between the highest bid and lowest offer on the stock exchange on
which the shares are listed for trading, as of the time the net asset value is calculated. Market price may be greater or less than net asset value.
|
(8)
|
|
Annualized for periods less than one year.
|
(9)
|
|
Portfolio turnover excludes in-kind transactions.
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
30
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS AEX-INDEX
®
FUND (THE NETHERLANDS)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 96.5%
|
|
|
|
|
Banks 0.8%
|
|
|
|
|
Fortis
|
|
8,090
|
|
$9,335
|
Brewers 2.9%
|
|
|
|
|
Heineken NV
|
|
990
|
|
33,054
|
Business Training & Employment Agencies 1.1%
|
|
|
Randstad Holding NV
|
|
530
|
|
10,185
|
USG People NV
|
|
258
|
|
2,663
|
|
|
|
|
12,848
|
Consumer Electronics 2.3%
|
|
|
|
|
Koninklijke Philips Electronics NV
|
|
1,487
|
|
27,058
|
Delivery Services 2.5%
|
|
|
|
|
TNT NV
|
|
1,366
|
|
28,234
|
Fixed Line Telecommunications 8.2%
|
|
|
|
|
Koninklijke KPN NV
|
|
6,775
|
|
94,373
|
Food Products 8.0%
|
|
|
|
|
Unilever NV
|
|
3,832
|
|
91,547
|
Food Retailers & Wholesalers 4.6%
|
|
|
|
|
Koninklijke Ahold NV
|
|
4,931
|
|
52,317
|
Heavy Construction 0.3%
|
|
|
|
|
Koninklijke BAM Groep NV
|
|
391
|
|
3,431
|
Integrated Oil & Gas 17.9%
|
|
|
|
|
Royal Dutch Shell PLC, Class A
|
|
7,454
|
|
204,353
|
Life Insurance 5.4%
|
|
|
|
|
Aegon NV
|
|
6,013
|
|
24,193
|
ING Groep NV
|
|
4,087
|
|
37,496
|
|
|
|
|
61,689
|
Oil Equipment & Services 4.5%
|
|
|
|
|
Fugro NV
|
|
1,214
|
|
42,781
|
SBM Offshore NV
|
|
530
|
|
9,197
|
|
|
|
|
51,978
|
Publishing 9.2%
|
|
|
|
|
Reed Elsevier NV
|
|
4,037
|
|
53,423
|
Wolters Kluwer NV
|
|
2,945
|
|
51,610
|
|
|
|
|
105,033
|
Retail REITs 3.7%
|
|
|
|
|
Corio NV (REIT)
|
|
182
|
|
9,642
|
Unibail-Rodamco (REIT)
|
|
219
|
|
32,598
|
|
|
|
|
42,240
|
Semiconductors 5.6%
|
|
|
|
|
ASML Holding NV
|
|
3,696
|
|
63,739
|
Specialty Chemicals 5.9%
|
|
|
|
|
Akzo Nobel NV
|
|
1,307
|
|
53,739
|
Koninklijke DSM NV
|
|
497
|
|
13,682
|
|
|
|
|
67,421
|
Specialty REITs 4.2%
|
|
|
|
|
Wereldhave NV (REIT)
|
|
583
|
|
48,038
|
Steel 9.0%
|
|
|
|
|
ArcelorMittal
|
|
4,040
|
|
102,561
|
Telecommunications Equipment 0.4%
|
|
|
|
|
TomTom NV
*
|
|
563
|
|
4,244
|
Total Common Stocks
|
|
|
|
|
(Cost $2,121,571)
|
|
|
|
1,103,493
|
|
|
|
|
|
|
|
NUMBER
OF RIGHTS
|
|
VALUE
|
RIGHTS 0.0%
(1)
|
|
|
|
|
Banks 0.0%
(1)
|
|
|
|
|
Fortis, expiring 7/1/14
*
(2)(3)
|
|
8,090
|
|
$0
|
Total Rights
|
|
|
|
|
(Cost $0)
|
|
|
|
0
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(4)(5)
|
|
553
|
|
553
|
Total Short-Term Investment
|
|
|
|
|
(Cost $553)
|
|
|
|
553
|
|
|
|
|
|
Total Investments 96.5%
|
|
|
|
|
(Cost $2,122,124)
|
|
|
|
1,104,046
|
Other Assets less Liabilities 3.5%
|
|
|
|
39,556
|
NET ASSETS 100.0%
|
|
|
|
$1,143,602
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) This security represents a
possible future entitlement to any proceeds that the Belgium Government might earn from the sale of Fortis Bank Belgium, which will be distributed back to shareholders of record. Accordingly, there is no associated strike price.
(3) Security fair valued in accordance with procedures adopted by the Board of Trustees. At October 31, 2008, the value of these securities amounted to $0, or
0.0% of net assets.
(4) The rate quoted is the annualized seven-day net yield of the Fund at period end.
(5) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank, N.A. is the custodian and transfer agent for each Fund. Certain officers of
the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $553 of the JPMorgan Prime Money Market Fund, Morgan Shares.
REIT Real Estate Investment Trust
Percentages shown
are based on Net Assets.
All securities are concentrated within the Netherlands with the exception of the JPMorgan Prime Money Market Fund,
Morgan Shares, which is concentrated in the United States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Banks
|
|
0.8%
|
Brewers
|
|
3.0
|
Business Training & Employment Agencies
|
|
1.2
|
Consumer Electronics
|
|
2.4
|
Delivery Services
|
|
2.6
|
Fixed Line Telecommunications
|
|
8.5
|
Food Products
|
|
8.3
|
Food Retailers & Wholesalers
|
|
4.7
|
Heavy Construction
|
|
0.3
|
Integrated Oil & Gas
|
|
18.5
|
Life Insurance
|
|
5.6
|
Oil Equipment & Services
|
|
4.7
|
Publishing
|
|
9.5
|
Retail REITs
|
|
3.8
|
Semiconductors
|
|
5.8
|
Specialty Chemicals
|
|
6.1
|
Specialty REITs
|
|
4.4
|
Steel
|
|
9.3
|
Telecommunications Equipment
|
|
0.4
|
ShortTerm Investment
|
|
0.1
|
Total
|
|
100.0%
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
31
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS BEL 20
®
INDEX FUND (BELGIUM)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.3%
|
|
|
|
|
Banks 14.6%
|
|
|
|
|
Dexia SA
|
|
10,588
|
|
$54,779
|
Fortis
|
|
14,446
|
|
16,303
|
KBC Groep NV
|
|
2,395
|
|
101,739
|
|
|
|
|
172,821
|
Brewers 10.9%
|
|
|
|
|
InBev NV
|
|
3,229
|
|
128,876
|
Diversified Industrials 4.9%
|
|
|
|
|
Ackermans & van Haaren NV
|
|
342
|
|
19,476
|
Bekaert SA
|
|
393
|
|
38,293
|
|
|
|
|
57,769
|
Electronic Equipment 1.6%
|
|
|
|
|
AGFA Gevaert NV
*
|
|
4,714
|
|
19,427
|
Fixed Line Telecommunications 4.6%
|
|
|
|
|
Belgacom SA
|
|
1,587
|
|
53,811
|
Food Retailers & Wholesalers 10.6%
|
|
|
|
|
Colruyt SA
|
|
240
|
|
53,562
|
Delhaize Group
|
|
1,302
|
|
72,438
|
|
|
|
|
126,000
|
Gas Distribution 21.4%
|
|
|
|
|
GDF Suez
|
|
5,770
|
|
253,559
|
Industrial & Office REITs 1.4%
|
|
|
|
|
Cofinimmo (REIT)
|
|
135
|
|
16,691
|
Mobile Telecommunications 4.2%
|
|
|
|
|
Mobistar SA
|
|
750
|
|
49,406
|
Nonferrous Metals 0.2%
|
|
|
|
|
Nyrstar
|
|
909
|
|
2,789
|
Pharmaceuticals 6.9%
|
|
|
|
|
Omega Pharma SA
|
|
753
|
|
27,451
|
UCB SA
|
|
2,131
|
|
53,923
|
|
|
|
|
81,374
|
Specialty Chemicals 9.1%
|
|
|
|
|
Solvay SA
|
|
603
|
|
55,597
|
Umicore
|
|
2,921
|
|
51,707
|
|
|
|
|
107,304
|
Specialty Finance 8.9%
|
|
|
|
|
Groupe Bruxelles Lambert SA
|
|
767
|
|
55,540
|
Nationale A Portefeuille
|
|
936
|
|
50,016
|
|
|
|
|
105,556
|
Total Common Stocks
|
|
|
|
|
(Cost $2,397,159)
|
|
|
|
1,175,383
|
|
|
|
|
|
RIGHTS0.0%
(1)
|
|
|
|
|
Banks 0.0%
(1)
|
|
|
|
|
Fortis, expiring 7/1/14
*
(2)(3)
|
|
15,314
|
|
$0
|
Total Rights
|
|
|
|
|
(Cost $0)
|
|
|
|
0
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
SHORT-TERM INVESTMENT 0.4%
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(4)(5)
|
|
4,456
|
|
4,456
|
Total Short-Term Investment
|
|
|
|
|
(Cost $4,456)
|
|
|
|
4,456
|
|
|
|
|
|
Total Investments 99.7%
|
|
|
|
|
(Cost $2,401,615)
|
|
|
|
1,179,839
|
Other Assets less Liabilities 0.3%
|
|
|
|
3,959
|
NET ASSETS 100.0%
|
|
|
|
$1,183,798
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) This security represents a
possible future entitlement to any proceeds that the Belgium Government might earn from the sale of Fortis Bank Belgium, which will be distributed back to shareholders of record. Accordingly, there is no associated strike price.
(3) Security fair valued in accordance with procedures adopted by the Board of Trustees. At October 31, 2008, the value of these securities amounted to $0, or
0.0% of net assets.
(4) The rate quoted is the annualized seven-day net yield of the Fund at period end.
(5) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank, N.A. is the custodian and transfer agent for each Fund. Certain officers of
the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $4,456 of the JPMorgan Prime Money Market Fund, Morgan Shares.
REIT Real Estate Investment Trust
Percentages shown
are based on Net Assets.
All securities are concentrated within Belgium with the exception of the JPMorgan Prime Money Market Fund, Morgan
Shares, which is concentrated in the United States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Banks
|
|
14.7%
|
Brewers
|
|
10.9
|
Diversified Industrials
|
|
4.9
|
Electronic Equipment
|
|
1.6
|
Fixed Line Telecommunications
|
|
4.6
|
Food Retailers & Wholesalers
|
|
10.7
|
Gas Distribution
|
|
21.5
|
Industrial & Office REITs
|
|
1.4
|
Mobile Telecommunications
|
|
4.2
|
Nonferrous Metals
|
|
0.2
|
Pharmaceuticals
|
|
6.9
|
Specialty Chemicals
|
|
9.1
|
Specialty Finance
|
|
8.9
|
Short-Term Investment
|
|
0.4
|
Total
|
|
100.0%
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
32
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS CAC40
®
INDEX FUND (FRANCE)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.6%
|
|
|
|
|
Aerospace 0.7%
|
|
|
|
|
European Aeronautic Defence and Space Co. NV
|
|
674
|
|
$11,059
|
Airlines 0.5%
|
|
|
|
|
Air France-KLM
|
|
472
|
|
6,724
|
Automobiles 1.3%
|
|
|
|
|
Peugeot SA
|
|
328
|
|
8,649
|
Renault SA
|
|
376
|
|
11,376
|
|
|
|
|
20,025
|
Banks 13.7%
|
|
|
|
|
BNP Paribas
|
|
1,599
|
|
113,546
|
Credit Agricole SA
|
|
2,078
|
|
29,604
|
Dexia SA
|
|
696
|
|
3,590
|
Societe Generale
|
|
1,095
|
|
58,561
|
|
|
|
|
205,301
|
Broadcasting & Entertainment 3.7%
|
|
|
|
|
Vivendi
|
|
2,162
|
|
55,941
|
Broadline Retailers 0.6%
|
|
|
|
|
PPR
|
|
145
|
|
9,120
|
Building Materials & Fixtures 2.6%
|
|
|
|
|
Cie de Saint-Gobain
|
|
576
|
|
21,930
|
Lafarge SA
|
|
250
|
|
16,268
|
|
|
|
|
38,198
|
Clothing & Accessories 2.2%
|
|
|
|
|
LVMH Moet Hennessy Louis Vuitton SA
|
|
498
|
|
32,752
|
Commodity Chemicals 2.7%
|
|
|
|
|
Air Liquide
|
|
481
|
|
41,052
|
Computer Services 0.5%
|
|
|
|
|
Cap Gemini SA
|
|
251
|
|
7,979
|
Conventional Electricity 2.7%
|
|
|
|
|
EDF
|
|
673
|
|
40,024
|
Distillers & Vintners 1.5%
|
|
|
|
|
Pernod-Ricard SA
|
|
346
|
|
22,280
|
Electrical Components & Equipment 1.6%
|
|
|
|
|
Schneider Electric SA
|
|
408
|
|
24,161
|
Fixed Line Telecommunications 6.0%
|
|
|
|
|
France Telecom SA
|
|
3,611
|
|
90,205
|
Food Products 3.1%
|
|
|
|
|
Groupe Danone
|
|
848
|
|
46,711
|
Food Retailers & Wholesalers 3.3%
|
|
|
|
|
Carrefour SA
|
|
1,172
|
|
48,924
|
Gas Distribution 7.1%
|
|
|
|
|
GDF Suez
|
|
2,417
|
|
106,213
|
Heavy Construction 3.5%
|
|
|
|
|
Bouygues
|
|
508
|
|
21,374
|
Vinci SA
|
|
859
|
|
30,488
|
|
|
|
|
51,862
|
Hotels 0.8%
|
|
|
|
|
Accor SA
|
|
306
|
|
11,775
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.6% continued
|
|
|
Industrial Machinery 1.8%
|
|
|
|
|
Alstom SA
|
|
338
|
|
$16,426
|
Vallourec
|
|
93
|
|
10,260
|
|
|
|
|
26,686
|
Insurance 3.8%
|
|
|
|
|
AXA SA
|
|
3,046
|
|
57,358
|
Integrated Oil & Gas 15.8%
|
|
|
|
|
Total SA
|
|
4,365
|
|
236,983
|
Medical Supplies 1.2%
|
|
|
|
|
Cie Generale dOptique Essilor International SA
|
|
395
|
|
17,561
|
Personal Products 2.5%
|
|
|
|
|
LOreal SA
|
|
497
|
|
37,193
|
Pharmaceuticals 8.1%
|
|
|
|
|
Sanofi-Aventis SA
|
|
1,938
|
|
121,473
|
Publishing 0.5%
|
|
|
|
|
Lagardere SCA
|
|
198
|
|
7,783
|
Retail REITs 1.5%
|
|
|
|
|
Unibail-Rodamco (REIT)
|
|
151
|
|
22,403
|
Semiconductors 0.6%
|
|
|
|
|
STMicroelectronics NV
|
|
1,092
|
|
8,855
|
Steel 2.5%
|
|
|
|
|
ArcelorMittal
|
|
1,463
|
|
37,205
|
Telecommunications Equipment 0.6%
|
|
|
|
|
Alcatel-Lucent*
|
|
3,725
|
|
9,494
|
Tires 0.8%
|
|
|
|
|
Compagnie Generale des Etablissements Michelin, Class B
|
|
231
|
|
11,750
|
Water 1.8%
|
|
|
|
|
Suez Environnement SA*
|
|
548
|
|
10,423
|
Veolia Environnement
|
|
697
|
|
16,979
|
|
|
|
|
27,402
|
Total Investments 99.6%
|
|
|
|
|
(Cost $2,550,327)
|
|
|
|
1,492,452
|
Other Assets less Liabilities 0.4%
|
|
|
|
5,835
|
NET ASSETS 100.0%
|
|
|
|
$1,498,287
|
* Non-Income Producing Security.
REIT Real Estate Investment Trust
Percentages shown
are based on Net Assets.
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
33
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS CAC40
®
INDEX FUND (FRANCE)
continued
|
OCTOBER 31, 2008
|
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Aerospace
|
|
0.7%
|
Airlines
|
|
0.5
|
Automobiles
|
|
1.3
|
Banks
|
|
13.8
|
Broadcasting & Entertainment
|
|
3.8
|
Broadline Retailers
|
|
0.6
|
Building Materials & Fixtures
|
|
2.6
|
Clothing & Accessories
|
|
2.2
|
Commodity Chemicals
|
|
2.8
|
Computer Services
|
|
0.5
|
Conventional Electricity
|
|
2.7
|
Distillers & Vintners
|
|
1.5
|
Electrical Components & Equipment
|
|
1.6
|
Fixed Line Telecommunications
|
|
6.0
|
Food Products
|
|
3.1
|
Food Retailers & Wholesalers
|
|
3.3
|
Gas Distribution
|
|
7.1
|
Heavy Construction
|
|
3.5
|
Hotels
|
|
0.8
|
Industrial Machinery
|
|
1.8
|
Insurance
|
|
3.8
|
Integrated Oil & Gas
|
|
15.9
|
Medical Supplies
|
|
1.2
|
Personal Products
|
|
2.5
|
Pharmaceuticals
|
|
8.1
|
Publishing
|
|
0.5
|
Retail REITs
|
|
1.5
|
Semiconductors
|
|
0.6
|
Steel
|
|
2.5
|
Telecommunications Equipment
|
|
0.6
|
Tires
|
|
0.8
|
Water
|
|
1.8
|
Total
|
|
100.0%
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
34
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS DAX
®
INDEX FUND (GERMANY)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.1%
|
Airlines 1.1%
|
|
|
|
|
Deutsche Lufthansa AG (Registered)
|
|
1,125
|
|
$15,606
|
Auto Parts & Equipment 0.6%
|
|
|
|
|
Continental AG
|
|
207
|
|
8,494
|
Automobile Manufacturers 17.3%
|
|
|
|
|
Bayerische Motoren Werke AG
|
|
791
|
|
20,176
|
Daimler AG
|
|
2,124
|
|
72,208
|
Volkswagen AG
|
|
260
|
|
164,682
|
|
|
|
|
257,066
|
Chemicals, Commodity 0.8%
|
|
|
|
|
K+S AG
|
|
322
|
|
12,527
|
Chemicals, Speciality 11.7%
|
|
|
|
|
BASF SE
|
|
2,129
|
|
70,380
|
Bayer AG
|
|
1,883
|
|
103,055
|
|
|
|
|
173,435
|
Clothing & Footwear 1.2%
|
|
|
|
|
Adidas AG
|
|
488
|
|
17,036
|
Credit Banks 4.7%
|
|
|
|
|
Commerzbank AG
|
|
1,623
|
|
17,350
|
Deutsche Bank AG (Registered)
|
|
1,307
|
|
48,792
|
Deutsche Postbank AG
|
|
202
|
|
4,075
|
|
|
|
|
70,217
|
Fixed-Line Telecommunication 10.0%
|
|
|
|
|
Deutsche Telekom AG
|
|
10,067
|
|
147,824
|
Health Care 3.7%
|
|
|
|
|
Fresenius Medical Care AG & Co. KGaA
|
|
1,227
|
|
54,861
|
Industrial Gases 1.9%
|
|
|
|
|
Linde AG
|
|
348
|
|
28,732
|
Industrial, Diversified 9.8%
|
|
|
|
|
MAN AG
|
|
244
|
|
11,983
|
Siemens AG (Registered)
|
|
2,011
|
|
118,475
|
ThyssenKrupp AG
|
|
823
|
|
15,665
|
|
|
|
|
146,123
|
Insurance 4.7%
|
|
|
|
|
Allianz SE (Registered)
|
|
952
|
|
70,041
|
Logistics 1.5%
|
|
|
|
|
Deutsche Post AG (Registered)
|
|
2,070
|
|
22,705
|
Mortgage Banks 0.2%
|
|
|
|
|
Hypo Real Estate Holding AG
|
|
456
|
|
2,995
|
Multi-Utilities 15.4%
|
|
|
|
|
E.ON AG
|
|
4,233
|
|
159,205
|
RWE AG
|
|
855
|
|
70,244
|
|
|
|
|
229,449
|
Personal Products 0.9%
|
|
|
|
|
Henkel AG & Co. KGaA (Preference)
|
|
440
|
|
12,559
|
Pharmaceuticals 0.9%
|
|
|
|
|
Merck KGAA
|
|
159
|
|
14,029
|
Re-Insurance 4.5%
|
|
|
|
|
Muenchener Rueckversicherungs AG (Registered)
|
|
508
|
|
66,285
|
Retail, Multiline 0.6%
|
|
|
|
|
Metro AG
|
|
272
|
|
8,650
|
Securities Brokers 2.5%
|
|
|
|
|
Deutsche Boerse AG
|
|
480
|
|
37,731
|
Semiconductors 0.4%
|
|
|
|
|
Infineon Technologies AG
*
|
|
1,845
|
|
5,744
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.1% continued
|
Software 4.7%
|
|
|
|
|
SAP AG
|
|
2,001
|
|
$70,044
|
Total Common Stocks
|
|
|
|
|
(Cost $2,538,818)
|
|
|
|
1,472,153
|
|
|
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
453
|
|
453
|
Total Short-Term Investment
|
|
|
|
|
(Cost $453)
|
|
|
|
453
|
|
|
|
|
|
Total Investments 99.1%
|
|
|
|
|
(Cost $2,539,271)
|
|
|
|
1,472,606
|
Other Assets less Liabilities 0.9%
|
|
|
|
13,352
|
NET ASSETS 100.0%
|
|
|
|
$1,485,958
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $453 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
Percentages shown are based on Net Assets.
All securities are concentrated within Germany with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United
States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Airlines
|
|
1.1%
|
Auto Parts & Equipment
|
|
0.6
|
Automobile Manufacturers
|
|
17.5
|
Chemicals, Commodity
|
|
0.8
|
Chemicals, Speciality
|
|
11.8
|
Clothing & Footwear
|
|
1.2
|
Credit Banks
|
|
4.8
|
Fixed-Line Telecommunication
|
|
10.0
|
Health Care
|
|
3.7
|
Industrial Gases
|
|
1.9
|
Industrial, Diversified
|
|
9.9
|
Insurance
|
|
4.8
|
Logistics
|
|
1.5
|
Mortgage Banks
|
|
0.2
|
Multi-Utilities
|
|
15.6
|
Personal Products
|
|
0.8
|
Pharmaceuticals
|
|
0.9
|
Re-Insurance
|
|
4.5
|
Retail, Multiline
|
|
0.6
|
Securities Brokers
|
|
2.6
|
Semiconductors
|
|
0.4
|
Software
|
|
4.8
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
35
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS FTSE 100 INDEX FUND
(UNITED KINGDOM)
|
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.6%
|
|
|
|
|
Aerospace 0.8%
|
|
|
|
|
Cobham PLC
|
|
1,001
|
|
$3,040
|
Rolls-Royce Group PLC*
|
|
1,640
|
|
8,645
|
Rolls-Royce Group PLC, Class C*
|
|
93,808
|
|
152
|
|
|
|
|
11,837
|
Airlines 0.1%
|
|
|
|
|
British Airways PLC
|
|
1,015
|
|
2,232
|
Apparel Retailers 0.2%
|
|
|
|
|
Next PLC
|
|
177
|
|
3,014
|
Asset Managers 0.7%
|
|
|
|
|
Man Group PLC
|
|
1,503
|
|
8,646
|
Schroders PLC
|
|
150
|
|
1,917
|
Schroders PLC (Non-Voting)
|
|
59
|
|
631
|
|
|
|
|
11,194
|
Banks 14.0%
|
|
|
|
|
Barclays PLC
|
|
7,242
|
|
20,934
|
HBOS PLC
|
|
4,855
|
|
7,789
|
HSBC Holdings PLC
|
|
10,694
|
|
131,665
|
Lloyds TSB Group PLC
|
|
5,016
|
|
16,031
|
Royal Bank of Scotland Group PLC
|
|
14,857
|
|
16,203
|
Standard Chartered PLC
|
|
1,268
|
|
20,795
|
|
|
|
|
213,417
|
Brewers 1.0%
|
|
|
|
|
SABMiller PLC
|
|
1,003
|
|
15,939
|
Broadcasting & Entertainment 0.5%
|
|
|
|
|
British Sky Broadcasting Group PLC
|
|
1,165
|
|
7,125
|
Broadline Retailers 0.3%
|
|
|
|
|
Marks & Spencer Group PLC
|
|
1,419
|
|
5,021
|
Business Support Services 1.1%
|
|
|
|
|
Bunzl PLC
|
|
302
|
|
3,040
|
Capita Group PLC (The)
|
|
557
|
|
5,742
|
Experian PLC
|
|
900
|
|
4,966
|
G4S PLC
|
|
1,242
|
|
3,756
|
|
|
|
|
17,504
|
Containers & Packaging 0.2%
|
|
|
|
|
Rexam PLC
|
|
567
|
|
3,419
|
Conventional Electricity 2.2%
|
|
|
|
|
British Energy Group PLC
|
|
909
|
|
10,868
|
Drax Group PLC
|
|
303
|
|
2,818
|
International Power PLC
|
|
1,328
|
|
4,753
|
Scottish & Southern Energy PLC
|
|
781
|
|
15,319
|
|
|
|
|
33,758
|
Defense 1.2%
|
|
|
|
|
BAE Systems PLC
|
|
3,194
|
|
17,998
|
Distillers & Vintners 2.3%
|
|
|
|
|
Diageo PLC
|
|
2,233
|
|
34,312
|
Diversified Industrials 0.3%
|
|
|
|
|
Smiths Group PLC
|
|
355
|
|
4,580
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.6% continued
|
|
|
Exploration & Production 0.5%
|
|
|
|
|
Cairn Energy PLC*
|
|
115
|
|
$2,980
|
Tullow Oil PLC
|
|
634
|
|
5,368
|
|
|
|
|
8,348
|
Fixed Line Telecommunications 1.1%
|
|
|
|
|
BT Group PLC
|
|
6,887
|
|
12,808
|
Cable & Wireless PLC
|
|
2,269
|
|
4,506
|
|
|
|
|
17,314
|
Food Products 2.7%
|
|
|
|
|
Associated British Foods PLC
|
|
349
|
|
$3,922
|
Cadbury PLC
|
|
1,181
|
|
10,839
|
Unilever PLC
|
|
1,137
|
|
25,646
|
|
|
|
|
40,407
|
Food Retailers & Wholesalers 3.7%
|
|
|
|
|
J. Sainsbury PLC
|
|
1,570
|
|
7,166
|
Tesco PLC
|
|
7,003
|
|
38,404
|
Wm. Morrison Supermarkets PLC
|
|
2,424
|
|
10,330
|
|
|
|
|
55,900
|
Full Line Insurance 0.4%
|
|
|
|
|
RSA Insurance Group PLC
|
|
2,968
|
|
6,594
|
Gas Distribution 1.1%
|
|
|
|
|
Centrica PLC
|
|
3,321
|
|
16,339
|
General Mining 8.0%
|
|
|
|
|
Anglo American PLC
|
|
1,178
|
|
29,159
|
Antofagasta PLC
|
|
348
|
|
2,134
|
BHP Billiton PLC
|
|
1,973
|
|
33,568
|
Eurasian Natural Resources Corp.
|
|
341
|
|
1,704
|
Kazakhmys PLC
|
|
193
|
|
890
|
Rio Tinto PLC
|
|
893
|
|
41,324
|
Vedanta Resources PLC
|
|
126
|
|
1,731
|
Xstrata PLC
|
|
648
|
|
11,046
|
|
|
|
|
121,556
|
Home Improvement Retailers 0.2%
|
|
|
|
|
Kingfisher PLC
|
|
2,067
|
|
3,807
|
Hotels 0.1%
|
|
|
|
|
Intercontinental Hotels Group PLC
|
|
240
|
|
2,042
|
Industrial Suppliers 0.2%
|
|
|
|
|
Wolseley PLC
|
|
580
|
|
3,168
|
Insurance Brokers 0.2%
|
|
|
|
|
Admiral Group PLC
|
|
173
|
|
2,551
|
Integrated Oil & Gas 21.9%
|
|
|
|
|
BG Group PLC
|
|
3,007
|
|
44,359
|
BP PLC
|
|
16,797
|
|
137,666
|
Royal Dutch Shell PLC, Class A
|
|
3,163
|
|
86,727
|
Royal Dutch Shell PLC, Class B
|
|
2,413
|
|
64,681
|
|
|
|
|
333,433
|
Investment Services 0.2%
|
|
|
|
|
ICAP PLC
|
|
426
|
|
2,113
|
London Stock Exchange Group PLC
|
|
183
|
|
1,652
|
|
|
|
|
3,765
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
36
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2008
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.6% continued
|
|
|
|
|
Life Insurance 3.0%
|
|
|
|
|
Aviva PLC
|
|
2,371
|
|
$14,098
|
Friends Provident PLC
|
|
2,050
|
|
2,319
|
Legal & General Group PLC
|
|
5,180
|
|
5,967
|
Old Mutual PLC
|
|
4,697
|
|
3,802
|
Prudential PLC
|
|
2,222
|
|
11,309
|
Standard Life PLC
|
|
1,979
|
|
7,634
|
|
|
|
|
45,129
|
Media Agencies 0.4%
|
|
|
|
|
WPP Group PLC
|
|
1,058
|
|
6,410
|
Medical Equipment 0.5%
|
|
|
|
|
Smith & Nephew PLC
|
|
793
|
|
7,291
|
Mobile Telecommunications 6.1%
|
|
|
|
|
Inmarsat PLC
|
|
410
|
|
2,789
|
Vodafone Group PLC
|
|
46,872
|
|
90,198
|
|
|
|
|
92,987
|
Multi-Utilities 2.0%
|
|
|
|
|
National Grid PLC
|
|
2,166
|
|
24,621
|
United Utilities Group PLC
|
|
584
|
|
6,600
|
|
|
|
|
31,221
|
Nondurable Household Products 1.8%
|
|
|
|
|
Reckitt Benckiser Group PLC
|
|
639
|
|
26,947
|
Oil Equipment & Services 0.4%
|
|
|
|
|
AMEC PLC
|
|
293
|
|
2,448
|
John Wood Group PLC
|
|
381
|
|
1,479
|
Petrofac Ltd.
|
|
212
|
|
1,471
|
|
|
|
|
5,398
|
Pharmaceuticals 10.0%
|
|
|
|
|
AstraZeneca PLC
|
|
1,298
|
|
55,158
|
GlaxoSmithKline PLC
|
|
4,669
|
|
90,301
|
Shire PLC
|
|
494
|
|
6,537
|
|
|
|
|
151,996
|
Platinum & Precious Metals 0.2%
|
|
|
|
|
Fresnillo PLC
|
|
197
|
|
389
|
Lonmin PLC
|
|
137
|
|
2,539
|
|
|
|
|
2,928
|
Publishing 1.2%
|
|
|
|
|
Pearson PLC
|
|
732
|
|
7,191
|
Reed Elsevier PLC
|
|
963
|
|
8,480
|
Thomson Reuters PLC
|
|
158
|
|
2,739
|
|
|
|
|
18,410
|
Real Estate Investment Trusts 1.2%
|
|
|
|
|
British Land Co. PLC (REIT)
|
|
451
|
|
4,489
|
Hammerson PLC (REIT)
|
|
256
|
|
2,937
|
Land Securities Group PLC (REIT)
|
|
422
|
|
7,439
|
Liberty International PLC (REIT)
|
|
320
|
|
3,552
|
|
|
|
|
18,417
|
Recreational Services 0.3%
|
|
|
|
|
Carnival PLC
|
|
188
|
|
4,116
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.6% continued
|
|
|
Restaurants & Bars 0.7%
|
|
|
|
|
Compass Group PLC
|
|
1,649
|
|
$7,667
|
Whitbread PLC
|
|
155
|
|
2,237
|
|
|
|
|
9,904
|
Software 0.5%
|
|
|
|
|
Autonomy Corp. PLC*
|
|
193
|
|
3,051
|
Invensys PLC*
|
|
701
|
|
1,749
|
Sage Group PLC (The)
|
|
1,209
|
|
3,380
|
|
|
|
|
8,180
|
Specialty Chemicals 0.2%
|
|
|
|
|
Johnson Matthey PLC
|
|
195
|
|
2,936
|
Specialty Finance 0.2%
|
|
|
|
|
3i Group PLC
|
|
338
|
|
2,949
|
Tobacco 4.9%
|
|
|
|
|
British American Tobacco PLC
|
|
1,802
|
|
49,497
|
Imperial Tobacco Group PLC
|
|
909
|
|
24,454
|
|
|
|
|
73,951
|
Travel & Tourism 0.5%
|
|
|
|
|
Firstgroup PLC
|
|
437
|
|
2,882
|
Stagecoach Group PLC
|
|
642
|
|
1,919
|
Thomas Cook Group PLC
|
|
376
|
|
1,021
|
TUI Travel PLC
|
|
516
|
|
1,571
|
|
|
|
|
7,393
|
Water 0.3%
|
|
|
|
|
Severn Trent PLC
|
|
217
|
|
4,803
|
Total Common Stocks
|
|
|
|
|
(Cost $2,519,144)
|
|
|
|
1,517,940
|
|
|
|
|
|
CLOSED-END FUND 0.2%
|
|
|
|
|
Equity Investment Instruments 0.2%
|
|
|
|
|
Alliance Trust PLC (The)
|
|
|
|
|
(Cost $3,962)
|
|
593
|
|
2,348
|
Total Closed-End Fund
|
|
|
|
|
(Cost $3,962)
|
|
|
|
2,348
|
|
|
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
224
|
|
224
|
Total Short-Term Investment
|
|
|
|
|
(Cost $224)
|
|
|
|
224
|
|
|
|
|
|
Total Investments 99.8%
|
|
|
|
|
(Cost $2,523,330)
|
|
|
|
1,520,512
|
Other Assets less Liabilities 0.2%
|
|
|
|
3,146
|
NET ASSETS 100.0%
|
|
|
|
$1,523,658
|
* Non-Income Producing Security.
(1) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
37
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS FTSE 100 INDEX FUND (UNITED KINGDOM)
(continued)
|
OCTOBER 31, 2008
|
(2) The rate quoted is the annualized seven-day
net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank, N.A. is the custodian
and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $224 of the JPMorgan Prime
Money Market Fund, Morgan Shares.
REIT Real Estate Investment Trust
Percentages shown are based on Net Assets.
All
securities are concentrated within the United Kingdom with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Aerospace
|
|
0.8%
|
Airlines
|
|
0.1
|
Apparel Retailers
|
|
0.2
|
Asset Managers
|
|
0.7
|
Banks
|
|
14.0
|
Brewers
|
|
1.0
|
Broadcasting & Entertainment
|
|
0.5
|
Broadline Retailers
|
|
0.3
|
Business Support Services
|
|
1.2
|
Containers & Packaging
|
|
0.2
|
Conventional Electricity
|
|
2.2
|
Defense
|
|
1.2
|
Distillers & Vintners
|
|
2.3
|
Diversified Industrials
|
|
0.3
|
Equity Investment Instruments
|
|
0.2
|
Exploration & Production
|
|
0.5
|
Fixed Line Telecommunications
|
|
1.1
|
Food Products
|
|
2.7
|
Food Retailers & Wholesalers
|
|
3.7
|
Full Line Insurance
|
|
0.4
|
Gas Distribution
|
|
1.1
|
General Mining
|
|
8.0
|
Home Improvement Retailers
|
|
0.2
|
Hotels
|
|
0.1
|
Industrial Suppliers
|
|
0.2
|
Insurance Brokers
|
|
0.2
|
Integrated Oil & Gas
|
|
21.9
|
Investment Services
|
|
0.2
|
Life Insurance
|
|
3.0
|
Media Agencies
|
|
0.4
|
Medical Equipment
|
|
0.5
|
Mobile Telecommunications
|
|
6.1
|
Multi-Utilities
|
|
2.1
|
Nondurable Household Products
|
|
1.8
|
Oil Equipment & Services
|
|
0.4
|
Pharmaceuticals
|
|
10.0
|
Platinum & Precious Metals
|
|
0.2
|
Publishing
|
|
1.2
|
Real Estate Investment Trusts
|
|
1.2
|
Recreational Services
|
|
0.3
|
Restaurants & Bars
|
|
0.7
|
Software
|
|
0.5
|
Specialty Chemicals
|
|
0.2
|
Specialty Finance
|
|
0.2
|
Tobacco
|
|
4.9
|
Travel & Tourism
|
|
0.5
|
Water
|
|
0.3
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
38
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS FTSE/JSE TOP 40 INDEX FUND (SOUTH AFRICA)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 97.4%
|
Apparel Retailers 2.7%
|
|
|
|
|
Compagnie Financiere Richemont SA
|
|
16,098
|
|
$34,108
|
Banks 10.1%
|
|
|
|
|
ABSA Group Ltd.
|
|
1,707
|
|
17,503
|
FirstRand Ltd.
|
|
21,129
|
|
30,010
|
Nedbank Group Ltd.
|
|
1,143
|
|
10,873
|
RMB Holdings Ltd.
|
|
4,448
|
|
10,246
|
Standard Bank Group Ltd.
|
|
7,244
|
|
56,628
|
|
|
|
|
125,260
|
Brewers 6.0%
|
|
|
|
|
SABMiller PLC
|
|
4,722
|
|
74,785
|
Broadcasting & Entertainment 2.8%
|
|
|
|
|
Naspers Ltd., Class N
|
|
2,112
|
|
34,735
|
Building Materials & Fixtures 0.7%
|
|
|
|
|
Pretoria Portland Cement Co. Ltd.
|
|
2,649
|
|
8,068
|
Business Support Services 1.5%
|
|
|
|
|
Bidvest Group Ltd.*
|
|
1,731
|
|
18,277
|
Consumer Finance 0.9%
|
|
|
|
|
African Bank Investments Ltd.
|
|
3,947
|
|
10,659
|
Diversified Industrials 1.4%
|
|
|
|
|
Remgro Ltd.
|
|
2,482
|
|
17,888
|
Equity Investment Instruments 0.5%
|
|
|
|
|
Reinet Investments SCA GDR*
|
|
5,397
|
|
6,794
|
Fixed Line Telecommunications 1.2%
|
|
|
|
|
Telkom SA Ltd.
|
|
1,367
|
|
14,676
|
Food Products 1.2%
|
|
|
|
|
Tiger Brands Ltd.
|
|
1,017
|
|
14,656
|
Food Retailers & Wholesalers 1.2%
|
|
|
|
|
Shoprite Holdings Ltd.
|
|
2,876
|
|
15,037
|
Furnishings 0.8%
|
|
|
|
|
Steinhoff International Holdings Ltd.
|
|
6,931
|
|
10,034
|
General Mining 27.5%
|
|
|
|
|
African Rainbow Minerals Ltd.
|
|
588
|
|
5,910
|
Anglo American PLC
|
|
6,271
|
|
152,382
|
BHP Billiton PLC
|
|
10,437
|
|
177,863
|
Exxaro Resources Ltd.
|
|
616
|
|
4,028
|
Kumba Iron Ore Ltd.
|
|
161
|
|
2,092
|
|
|
|
|
342,275
|
Gold Mining 5.7%
|
|
|
|
|
AngloGold Ashanti Ltd.
|
|
1,752
|
|
33,526
|
Gold Fields Ltd.
|
|
3,218
|
|
22,542
|
Harmony Gold Mining Co. Ltd.*
|
|
2,004
|
|
14,995
|
|
|
|
|
71,063
|
Heavy Construction 1.8%
|
|
|
|
|
Aveng Ltd.
|
|
2,229
|
|
10,860
|
Murray & Roberts Holdings Ltd.
|
|
1,765
|
|
11,823
|
|
|
|
|
22,683
|
Integrated Oil & Gas 7.1%
|
|
|
|
|
Sasol Ltd.
|
|
3,020
|
|
88,454
|
Investment Services 1.2%
|
|
|
|
|
Investec Ltd.
|
|
1,265
|
|
$6,138
|
Investec PLC
|
|
2,017
|
|
9,110
|
|
|
|
|
15,248
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 97.4% continued
|
Life Insurance 3.5%
|
|
|
|
|
Liberty Group Ltd.
|
|
312
|
|
1,926
|
Old Mutual PLC
|
|
27,817
|
|
23,976
|
Sanlam Ltd.
|
|
11,129
|
|
17,965
|
|
|
|
|
43,867
|
Mobile Telecommunications 7.3%
|
|
|
|
|
MTN Group Ltd.
|
|
8,254
|
|
91,339
|
Paper 0.8%
|
|
|
|
|
Mondi Ltd.
|
|
665
|
|
2,768
|
Sappi Ltd.
|
|
1,246
|
|
7,539
|
|
|
|
|
10,307
|
Platinum & Precious Metals 4.3%
|
|
|
|
|
Anglo Platinum Ltd.
|
|
384
|
|
15,594
|
Impala Platinum Holdings Ltd.
|
|
3,345
|
|
34,265
|
Lonmin PLC
|
|
190
|
|
3,582
|
|
|
|
|
53,441
|
Real Estate Investment Trusts 1.7%
|
|
|
|
|
Liberty International PLC (REIT)
|
|
1,917
|
|
21,213
|
Steel 1.0%
|
|
|
|
|
ArcelorMittal South Africa Ltd.
|
|
1,384
|
|
12,856
|
Tobacco 4.5%
|
|
|
|
|
British American Tobacco PLC*
|
|
2,068
|
|
55,891
|
Total Common Stocks
|
|
|
|
|
(Cost $2,366,991)
|
|
|
|
1,213,614
|
|
|
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
218
|
|
218
|
Total Short-Term Investment
|
|
|
|
|
(Cost $218)
|
|
|
|
218
|
|
|
|
|
|
Total Investments 97.4%
|
|
|
|
|
(Cost $2,367,209)
|
|
|
|
1,213,832
|
Other Assets less Liabilities 2.6%
|
|
|
|
32,631
|
NET ASSETS 100.0%
|
|
|
|
$1,246,463
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $218 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
GDR Global Depositary Receipt
REIT Real Estate Investment Trust
Percentages shown
are based on Net Assets.
All securities are concentrated within South Africa with the exception of the JPMorgan Prime Money Market Fund,
Morgan Shares, which is concentrated in the United States.
See Notes to Financial
Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
39
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS FTSE/JSE TOP 40 INDEX FUND (SOUTH AFRICA)
(continued)
|
OCTOBER 31, 2008
|
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Apparel Retailers
|
|
2.8%
|
Banks
|
|
10.3
|
Brewers
|
|
6.2
|
Broadcasting & Entertainment
|
|
2.9
|
Building Materials & Fixtures
|
|
0.7
|
Business Support Services
|
|
1.5
|
Consumer Finance
|
|
0.9
|
Diversified Industrials
|
|
1.5
|
Equity Investment Instruments
|
|
0.6
|
Fixed Line Telecommunications
|
|
1.2
|
Food Products
|
|
1.2
|
Food Retailers & Wholesalers
|
|
1.2
|
Furnishings
|
|
0.8
|
General Mining
|
|
28.2
|
Gold Mining
|
|
5.8
|
Heavy Construction
|
|
1.9
|
Integrated Oil & Gas
|
|
7.3
|
Investment Services
|
|
1.3
|
Life Insurance
|
|
3.6
|
Mobile Telecommunications
|
|
7.5
|
Paper
|
|
0.8
|
Platinum & Precious Metals
|
|
4.4
|
Real Estate Investment Trusts
|
|
1.7
|
Steel
|
|
1.1
|
Tobacco
|
|
4.6
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
40
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS FTSE SINGAPORE STRAITS TIMES INDEX FUND
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 96.3%
|
|
|
|
|
Aerospace 1.8%
|
|
|
|
|
Singapore Technologies Engineering Ltd.
|
|
15,000
|
|
$23,250
|
Airlines 4.6%
|
|
|
|
|
Singapore Airlines Ltd.
|
|
8,000
|
|
59,734
|
Banks 22.3%
|
|
|
|
|
DBS Group Holdings Ltd.
|
|
7,000
|
|
51,984
|
Oversea-Chinese Banking Corp.
|
|
17,000
|
|
56,136
|
United Overseas Bank Ltd.
|
|
21,000
|
|
184,258
|
|
|
|
|
292,378
|
Commercial Vehicles & Trucks 1.8%
|
|
|
|
|
Cosco Corp. Singapore Ltd.
|
|
11,000
|
|
5,745
|
SembCorp Marine Ltd.
|
|
15,000
|
|
17,993
|
|
|
|
|
23,738
|
Diversified Industrials 19.3%
|
|
|
|
|
Fraser and Neave Ltd.
|
|
25,000
|
|
45,994
|
Jardine Matheson Holdings Ltd.
|
|
3,600
|
|
84,600
|
Jardine Strategic Holdings Ltd.
|
|
3,000
|
|
35,820
|
Keppel Corp. Ltd.
|
|
17,000
|
|
51,324
|
Noble Group Ltd.
|
|
14,800
|
|
10,373
|
SembCorp Industries Ltd.
|
|
15,000
|
|
24,260
|
|
|
|
|
252,371
|
Farming & Fishing 1.1%
|
|
|
|
|
Golden Agri-Resources Ltd.
|
|
110,000
|
|
14,085
|
Fixed Line Telecommunications 15.4%
|
|
|
|
|
Singapore Telecommunications Ltd.
|
|
107,000
|
|
175,221
|
StarHub Ltd.
|
|
17,000
|
|
27,266
|
|
|
|
|
202,487
|
Food Products 3.6%
|
|
|
|
|
Olam International Ltd.
|
|
20,000
|
|
16,982
|
Wilmar International Ltd.
|
|
18,000
|
|
29,962
|
|
|
|
|
46,944
|
Hotels 3.9%
|
|
|
|
|
City Developments Ltd.
|
|
12,000
|
|
50,947
|
Investment Services 3.9%
|
|
|
|
|
Singapore Exchange Ltd.
|
|
15,000
|
|
51,553
|
Marine Transportation 0.5%
|
|
|
|
|
Neptune Orient Lines Ltd.
|
|
8,000
|
|
6,523
|
Publishing 3.6%
|
|
|
|
|
Singapore Press Holdings Ltd.
|
|
22,000
|
|
47,443
|
Real Estate Holding & Development 9.8%
|
|
|
|
|
CapitaLand Ltd.
|
|
31,000
|
|
59,539
|
Hongkong Land Holdings Ltd.
|
|
23,000
|
|
61,180
|
Keppel Land Ltd.
|
|
5,000
|
|
6,233
|
Yanlord Land Group Ltd.
|
|
4,000
|
|
1,968
|
|
|
|
|
128,920
|
Real Estate Investment Trusts 2.7%
|
|
|
|
|
CapitaMall Trust (REIT)
|
|
28,000
|
|
35,851
|
Recreational Services 1.0%
|
|
|
|
|
Genting International PLC*
|
|
56,000
|
|
13,586
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 96.3% continued
|
|
|
|
|
Specialty Retailers 1.0%
|
|
|
|
|
Jardine Cycle & Carriage Ltd.
|
|
2,000
|
|
$12,481
|
Total Common Stocks
|
|
|
|
|
(Cost $2,241,946)
|
|
|
|
1,262,291
|
|
|
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
857
|
|
857
|
Total Short-Term Investment
|
|
|
|
|
(Cost $857)
|
|
|
|
857
|
|
|
|
|
|
Total Investments 96.3%
|
|
|
|
|
(Cost $2,242,803)
|
|
|
|
1,263,148
|
Other Assets less Liabilities 3.7%
|
|
|
|
47,954
|
NET ASSETS 100.0%
|
|
|
|
$1,311,102
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $857 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
REIT Real Estate Investment Trust
Percentages shown are based on Net Assets.
All
securities are concentrated within Singapore with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Aerospace
|
|
1.8%
|
Airlines
|
|
4.7
|
Banks
|
|
23.2
|
Commercial Vehicles & Trucks
|
|
1.9
|
Diversified Industrials
|
|
20.0
|
Farming & Fishing
|
|
1.1
|
Fixed Line Telecommunications
|
|
16.0
|
Food Products
|
|
3.7
|
Hotels
|
|
4.0
|
Investment Services
|
|
4.1
|
Marine Transportation
|
|
0.5
|
Publishing
|
|
3.8
|
Real Estate Holding & Development
|
|
10.2
|
Real Estate Investment Trusts
|
|
2.8
|
Recreational Services
|
|
1.1
|
Specialty Retailers
|
|
1.0
|
Short-Term Investment
|
|
0.1
|
Total
|
|
100.0%
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
41
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS HANG SENG CHINA ENTERPRISES INDEX FUND
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 100.1%
|
|
|
|
|
Consumer Goods 1.3%
|
|
|
|
|
Dongfeng Motor Group Co. Ltd., Class H
|
|
33,277
|
|
$9,016
|
Tsingtao Brewery Co. Ltd., Class H
|
|
4,001
|
|
6,990
|
|
|
|
|
16,006
|
Energy 21.1%
|
|
|
|
|
China Coal Energy Co.
|
|
32,937
|
|
19,038
|
China Oilfield Services Ltd., Class H
|
|
14,857
|
|
7,917
|
China Petroleum & Chemical Corp., Class H
|
|
87,256
|
|
56,629
|
China Shenhua Energy Co., Ltd., Class H
|
|
25,366
|
|
45,820
|
PetroChina Co. Ltd., Class H
|
|
155,439
|
|
114,316
|
Yanzhou Coal Mining Co. Ltd., Class H
|
|
18,275
|
|
11,200
|
|
|
|
|
254,920
|
Financials 55.0%
|
|
|
|
|
Bank of China Ltd., Class H
|
|
195,376
|
|
55,711
|
Bank of Communications Co. Ltd., Class H
|
|
95,495
|
|
54,460
|
China Citic Bank, Class H
|
|
41,179
|
|
12,220
|
China Construction Bank Corp., Class H
|
|
335,300
|
|
160,069
|
China Life Insurance Co. Ltd., Class H
|
|
55,435
|
|
145,553
|
China Merchants Bank Co. Ltd., Class H
|
|
20,526
|
|
30,456
|
Industrial & Commercial Bank of China, Class H
|
|
341,142
|
|
155,816
|
PICC Property & Casualty Co. Ltd., Class H*
|
|
26,953
|
|
7,164
|
Ping An Insurance Group Co. of China Ltd., Class H
|
|
10,436
|
|
43,088
|
|
|
|
|
664,537
|
Industrial Goods 0.8%
|
|
|
|
|
Shanghai Electric Group Co. Ltd., Class H*
|
|
33,043
|
|
9,592
|
Materials 4.7%
|
|
|
|
|
Aluminum Corp. of China Ltd., Class H
|
|
35,386
|
|
13,012
|
Angang Steel Co. Ltd., Class H
|
|
12,329
|
|
7,286
|
China Molybdenum Co. Ltd., Class H
|
|
19,934
|
|
6,018
|
Jiangxi Copper Co. Ltd., Class H
|
|
15,465
|
|
7,263
|
Maanshan Iron & Steel, Class H
|
|
31,528
|
|
5,654
|
Sinopec Shanghai Petrochemical Co. Ltd., Class H
|
|
36,349
|
|
6,707
|
Zijin Mining Group Co. Ltd., Class H
|
|
37,635
|
|
11,169
|
|
|
|
|
57,109
|
Properties & Construction 6.7%
|
|
|
|
|
Anhui Conch Cement Co. Ltd., Class H*
|
|
3,838
|
|
11,810
|
China Communications Construction Co. Ltd., Class H
|
|
34,575
|
|
23,554
|
China National Building Material Co. Ltd., Class H
|
|
12,366
|
|
6,908
|
China Railway Construction Corp., Class H*
|
|
12,769
|
|
15,454
|
China Railway Group Ltd., Class H*
|
|
28,373
|
|
16,108
|
Guangzhou R&F Properties Co. Ltd., Class H
|
|
15,457
|
|
7,080
|
|
|
|
|
80,914
|
Services 4.9%
|
|
|
|
|
Air China Ltd., Class H
|
|
25,110
|
|
6,706
|
Beijing Capital International Airport Co. Ltd., Class H
|
|
17,747
|
|
9,617
|
China COSCO Holdings Co. Ltd., Class H
|
|
22,665
|
|
11,668
|
China Shipping Container Lines Co. Ltd., Class H
|
|
49,834
|
|
5,530
|
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
|
COMMON STOCKS 100.1% continued
|
|
|
|
Services 4.9% (continued)
|
|
|
|
|
|
China Shipping Development Co. Ltd., Class H
|
|
11,473
|
|
$10,777
|
|
Jiangsu Expressway Co. Ltd., Class H
|
|
11,339
|
|
7,725
|
|
Zhejiang Expressway Co. Ltd., Class H
|
|
14,739
|
|
6,808
|
|
|
|
|
|
58,831
|
|
Telecommunications 3.7%
|
|
|
|
|
|
China Communications Services Corp. Ltd., Class H
|
|
15,720
|
|
8,032
|
|
China Telecom Corp. Ltd., Class H
|
|
103,194
|
|
36,216
|
|
|
|
|
|
44,248
|
|
Utilities 1.9%
|
|
|
|
|
|
Datang International Power Generation Co. Ltd., Class H
|
|
28,552
|
|
10,462
|
|
Huaneng Power International, Inc., Class H
|
|
25,062
|
|
12,191
|
|
|
|
|
|
22,653
|
|
Total Common Stocks
|
|
|
|
|
|
(Cost $2,463,520)
|
|
|
|
1,208,810
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
40
|
|
40
|
|
Total Short-Term Investment
|
|
|
|
|
|
(Cost $40)
|
|
|
|
40
|
|
|
|
|
|
|
|
Total Investments 100.1%
|
|
|
|
|
|
(Cost $2,463,560)
|
|
|
|
1,208,850
|
|
Liabilities in Excess of Other Assets (0.1)%
|
|
|
|
(1,210
|
)
|
NET ASSETS 100.0%
|
|
|
|
$1,207,640
|
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $40 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
Percentages shown are based on Net Assets.
All securities are concentrated within China with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United
States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Consumer Goods
|
|
1.3%
|
Energy
|
|
21.1
|
Financials
|
|
55.0
|
Industrial Goods
|
|
0.8
|
Materials
|
|
4.7
|
Properties & Construction
|
|
6.7
|
Services
|
|
4.9
|
Telecommunications
|
|
3.6
|
Utilities
|
|
1.9
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
42
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS HANG SENG INDEX FUND (HONG KONG)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.2%
|
|
|
|
|
Conglomerates 6.1%
|
|
|
|
|
China Resources Enterprise
|
|
4,205
|
|
$8,138
|
Citic Pacific Ltd.
|
|
3,836
|
|
2,999
|
Hutchison Whampoa Ltd.
|
|
7,440
|
|
39,358
|
New World Development Ltd.
|
|
8,525
|
|
6,863
|
Swire Pacific Ltd., Class A
|
|
3,193
|
|
22,041
|
Wharf Holdings Ltd.
|
|
4,802
|
|
9,294
|
|
|
|
|
88,693
|
Consumer Goods 2.8%
|
|
|
|
|
Esprit Holdings Ltd.
|
|
3,690
|
|
20,472
|
Li & Fung Ltd.
|
|
8,255
|
|
16,190
|
Yue Yuen Industrial Holdings Ltd.
|
|
2,290
|
|
4,491
|
|
|
|
|
41,153
|
Energy 11.3%
|
|
|
|
|
China Petroleum & Chemical Corp., Class H
|
|
58,539
|
|
37,992
|
China Shenhua Energy Co., Ltd., Class H
|
|
11,859
|
|
21,421
|
CNOOC Ltd.
|
|
62,838
|
|
51,078
|
PetroChina Co. Ltd., Class H
|
|
74,145
|
|
54,529
|
|
|
|
|
165,020
|
Financials 43.7%
|
|
|
|
|
Bank of China Ltd., Class H
|
|
119,363
|
|
34,036
|
Bank of Communications Co. Ltd., Class H
|
|
48,274
|
|
27,530
|
Bank of East Asia Ltd.
|
|
5,835
|
|
11,368
|
BOC Hong Kong Holdings Ltd.
|
|
12,916
|
|
14,298
|
China Construction Bank Corp., Class H
|
|
157,627
|
|
75,250
|
China Life Insurance Co. Ltd., Class H
|
|
26,099
|
|
68,527
|
Hang Seng Bank Ltd.
|
|
2,668
|
|
32,703
|
Hong Kong Exchanges and Clearing Ltd.
|
|
3,750
|
|
36,651
|
HSBC Holdings PLC
|
|
20,437
|
|
242,593
|
Industrial & Commercial Bank of China, Class H
|
|
160,296
|
|
73,215
|
Ping An Insurance Group Co. of China Ltd., Class H
|
|
4,910
|
|
20,272
|
|
|
|
|
636,443
|
Information Technology 1.9%
|
|
|
|
|
Foxconn International Holdings Ltd.*
|
|
7,284
|
|
2,585
|
Tencent Holdings Ltd.
|
|
3,449
|
|
24,475
|
|
|
|
|
27,060
|
Materials 0.3%
|
|
|
|
|
Aluminum Corp. of China Ltd., Class H
|
|
13,769
|
|
5,063
|
Properties & Construction 9.8%
|
|
|
|
|
Cheung Kong Holdings Ltd.
|
|
4,846
|
|
45,362
|
China Overseas Land & Investment Ltd.
|
|
13,691
|
|
14,980
|
Hang Lung Properties Ltd.
|
|
7,231
|
|
17,167
|
Henderson Land Development Co. Ltd.
|
|
3,746
|
|
13,098
|
Sino Land Co.
|
|
8,508
|
|
7,146
|
Sun Hung Kai Properties Ltd.
|
|
5,419
|
|
45,797
|
|
|
|
|
143,550
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 99.2% continued
|
Services 1.9%
|
|
|
|
|
Cathay Pacific Airways Ltd.
|
|
4,058
|
|
$4,885
|
China Merchants Holdings International Co. Ltd.
|
|
3,778
|
|
8,774
|
COSCO Pacific Ltd.
|
|
3,863
|
|
2,742
|
MTR Corp.
|
|
4,928
|
|
10,682
|
|
|
|
|
27,083
|
Telecommunications 15.1%
|
|
|
|
|
China Mobile Ltd.
|
|
21,042
|
|
184,073
|
China Unicom Hong Kong Ltd.
|
|
24,883
|
|
35,316
|
|
|
|
|
219,389
|
Utilities 6.3%
|
|
|
|
|
CLP Holdings Ltd.
|
|
6,362
|
|
42,685
|
Hong Kong & China Gas Co. Ltd.
|
|
13,955
|
|
24,091
|
HongKong Electric Holdings
|
|
4,842
|
|
25,770
|
|
|
|
|
92,546
|
Total Investments 99.2%
|
|
|
|
|
(Cost $2,527,092)
|
|
|
|
1,446,000
|
Other Assets less Liabilities 0.8%
|
|
|
|
10,960
|
NET ASSETS 100.0%
|
|
|
|
$1,456,960
|
* Non-Income Producing Security.
Percentages shown are based on Net Assets.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Conglomerates
|
|
6.1%
|
Consumer Goods
|
|
2.8
|
Energy
|
|
11.4
|
Financials
|
|
44.0
|
Information Technology
|
|
1.9
|
Materials
|
|
0.4
|
Properties & Construction
|
|
9.9
|
Services
|
|
1.9
|
Telecommunications
|
|
15.2
|
Utilities
|
|
6.4
|
Total
|
|
100.0%
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
43
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS ISEQ 20 INDEX FUND (IRELAND)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 96.0%
|
|
|
|
|
Construction & Property Investment 30.2%
|
|
|
|
|
CRH PLC
|
|
11,094
|
|
$243,372
|
Grafton Group PLC*
|
|
16,472
|
|
49,085
|
Kingspan Group PLC
|
|
8,335
|
|
47,562
|
|
|
|
|
340,019
|
Energy & Exploration 2.2%
|
|
|
|
|
Dragon Oil PLC*
|
|
9,569
|
|
24,511
|
Financial Services 15.6%
|
|
|
|
|
Allied Irish Banks PLC
|
|
11,384
|
|
60,773
|
Anglo Irish Bank Corp. PLC
|
|
403
|
|
1,278
|
FBD Holdings PLC
|
|
3,364
|
|
49,056
|
Governor & Co. of the Bank of Ireland (The)
|
|
2,524
|
|
7,361
|
Irish Life & Permanent PLC
|
|
16,687
|
|
57,132
|
|
|
|
|
175,600
|
Food & Drink 10.7%
|
|
|
|
|
Aryzta AG
|
|
588
|
|
20,859
|
C&C Group PLC
|
|
17,162
|
|
24,809
|
Greencore Group PLC
|
|
31,135
|
|
48,561
|
Kerry Group PLC, Class A
|
|
1,177
|
|
26,119
|
|
|
|
|
120,348
|
Industrial 6.1%
|
|
|
|
|
DCC PLC
|
|
3,050
|
|
47,300
|
Smurfit Kappa Group PLC
|
|
11,875
|
|
21,081
|
|
|
|
|
68,381
|
Insurance 3.6%
|
|
|
|
|
AXA SA
|
|
2,124
|
|
39,996
|
Leisure & Services & Retail 8.2%
|
|
|
|
|
Independent News & Media PLC
|
|
53,820
|
|
43,678
|
Paddy Power PLC
|
|
2,854
|
|
48,314
|
|
|
|
|
91,992
|
Pharmaceutical & Biotech 11.3%
|
|
|
|
|
Elan Corp. PLC*
|
|
10,674
|
|
79,181
|
United Drug PLC
|
|
12,434
|
|
48,089
|
|
|
|
|
127,270
|
Transportation 8.1%
|
|
|
|
|
Ryanair Holdings PLC ADR*
|
|
4,094
|
|
91,173
|
Total Common Stocks
|
|
|
|
|
(Cost $1,727,250)
|
|
|
|
1,079,290
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2(3)
|
|
283
|
|
$283
|
Total Short-Term Investment
|
|
|
|
|
(Cost $283)
|
|
|
|
283
|
|
|
|
|
|
Total Investments 96.0%
|
|
|
|
|
(Cost $1,727,533)
|
|
|
|
1,079,573
|
Other Assets less Liabilities 4.0%
|
|
|
|
45,274
|
NET ASSETS 100.0%
|
|
|
|
$1,124,847
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $283 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
ADR American Depositary Receipt
Percentages shown are based on Net Assets.
All
securities are concentrated within Ireland with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Construction & Property Investment
|
|
31.5%
|
Energy & Exploration
|
|
2.3
|
Financial Services
|
|
16.3
|
Food & Drink
|
|
11.2
|
Industrial
|
|
6.3
|
Insurance
|
|
3.7
|
Leisure & Services & Retail
|
|
8.5
|
Pharmaceutical & Biotech
|
|
11.8
|
Transportation
|
|
8.4
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
44
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS PSI 20
®
INDEX FUND (PORTUGAL)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 96.5%
|
|
|
|
|
Alternative Electricity 2.1%
|
|
|
|
|
EDP Renovaveis SA*
|
|
4,802
|
|
$24,661
|
Banks 15.2%
|
|
|
|
|
Banco BPI SA (Registered)
|
|
25,339
|
|
52,052
|
Banco Comercial Portugues SA (Registered)
|
|
64,451
|
|
74,617
|
Banco Espirito Santo SA (Registered)
|
|
5,311
|
|
50,510
|
|
|
|
|
177,179
|
Broadcasting & Entertainment 7.1%
|
|
|
|
|
Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA
|
|
16,414
|
|
83,234
|
Building Materials & Fixtures 11.8%
|
|
|
|
|
Cimpor Cimentos de Portugal SGPS SA
|
|
11,620
|
|
53,060
|
Semapa-Sociedade de Investimento e Gestao
|
|
6,156
|
|
53,628
|
Sonae Industria SGPS SA
|
|
11,924
|
|
31,450
|
|
|
|
|
138,138
|
Conventional Electricity 18.8%
|
|
|
|
|
Energias de Portugal SA
|
|
49,510
|
|
168,630
|
Redes Energeticas Nacionais SA
|
|
15,955
|
|
51,793
|
|
|
|
|
220,423
|
Diversified Industrials 2.2%
|
|
|
|
|
Altri SGPS SA
|
|
8,150
|
|
25,836
|
Fixed Line Telecommunications 12.0%
|
|
|
|
|
Portugal Telecom SGPS SA (Registered)
|
|
21,597
|
|
140,847
|
Food Retailers & Wholesalers 5.0%
|
|
|
|
|
Jeronimo Martins SGPS SA
|
|
10,390
|
|
52,845
|
Sonae SGPS SA
|
|
8,936
|
|
5,439
|
|
|
|
|
58,284
|
Heavy Construction 7.3%
|
|
|
|
|
Mota Engil SGPS SA
|
|
16,599
|
|
53,358
|
Teixeira Duarte Engenharia Construcoes SA
|
|
34,601
|
|
32,029
|
|
|
|
|
85,387
|
Integrated Oil & Gas 4.6%
|
|
|
|
|
Galp Energia SGPS SA, Class B
|
|
5,924
|
|
53,973
|
Mobile Telecommunications 1.4%
|
|
|
|
|
Sonaecom, SGPS SA*
|
|
10,605
|
|
16,473
|
Paper 4.6%
|
|
|
|
|
Portucel Empresa Produtora de Pasta e Papel SA
|
|
25,042
|
|
53,316
|
Transportation Services 4.4%
|
|
|
|
|
Brisa
|
|
6,702
|
|
51,144
|
Total Common Stocks
|
|
|
|
|
(Cost $1,857,115)
|
|
|
|
1,128,895
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
336
|
|
$336
|
Total Short-Term Investment
|
|
|
|
|
(Cost $336)
|
|
|
|
336
|
|
|
|
|
|
Total Investments 96.5%
|
|
|
|
|
(Cost $1,857,451)
|
|
|
|
1,129,231
|
Other Assets less Liabilities 3.5%
|
|
|
|
41,326
|
NET ASSETS 100.0%
|
|
|
|
$1,170,557
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $336 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
Percentages shown are based on Net Assets.
All securities are concentrated within Portugal with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United
States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Alternative Electricity
|
|
2.2%
|
Banks
|
|
15.7
|
Broadcasting & Entertainment
|
|
7.4
|
Building Materials & Fixtures
|
|
12.2
|
Conventional Electricity
|
|
19.5
|
Diversified Industrials
|
|
2.3
|
Fixed Line Telecommunications
|
|
12.5
|
Food Retailers & Wholesalers
|
|
5.2
|
Heavy Construction
|
|
7.6
|
Integrated Oil & Gas
|
|
4.8
|
Mobile Telecommunications
|
|
1.4
|
Paper
|
|
4.7
|
Transportation Services
|
|
4.5
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
45
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS S&P/ASX 200 INDEX FUND (AUSTRALIA)
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.3%
|
|
|
|
|
Agricultural Products 0.1%
|
|
|
|
|
Futuris Corp. Ltd.
|
|
1,851
|
|
$1,435
|
Air Freight & Logistics 0.4%
|
|
|
|
|
Toll Holdings Ltd.
|
|
1,469
|
|
5,796
|
Airlines 0.5%
|
|
|
|
|
Qantas Airways Ltd.
|
|
4,517
|
|
7,212
|
Airport Services 0.3%
|
|
|
|
|
Macquarie Airports
|
|
3,253
|
|
4,593
|
Aluminum 0.4%
|
|
|
|
|
Alumina Ltd.
|
|
3,509
|
|
4,908
|
Apparel, Accessories & Luxury Goods 0.3%
|
|
|
|
|
Billabong International Ltd.
|
|
422
|
|
3,319
|
Asset Management & Custody Banks 0.5%
|
|
|
|
|
Australian Wealth Management Ltd.
|
|
1,071
|
|
562
|
Babcock & Brown Capital Ltd.*
|
|
295
|
|
389
|
Henderson Group PLC
|
|
1,183
|
|
976
|
HFA Holdings Ltd.
|
|
869
|
|
229
|
IOOF Holdings Ltd.
|
|
153
|
|
424
|
Perpetual Ltd.
|
|
98
|
|
2,259
|
Platinum Asset Management Ltd.
|
|
503
|
|
1,075
|
|
|
|
|
5,914
|
Biotechnology 2.6%
|
|
|
|
|
CSL Ltd.
|
|
1,430
|
|
34,341
|
Brewers 1.6%
|
|
|
|
|
Fosters Group Ltd.
|
|
4,606
|
|
17,382
|
Lion Nathan Ltd.
|
|
700
|
|
4,059
|
|
|
|
|
21,441
|
Broadcasting & Cable TV 0.3%
|
|
|
|
|
Austar United Communications Ltd.*
|
|
1,408
|
|
836
|
Consolidated Media Holdings Ltd.
|
|
1,021
|
|
1,387
|
Seven Network Ltd.
|
|
265
|
|
1,093
|
Ten Network Holdings Ltd.
|
|
751
|
|
669
|
|
|
|
|
3,985
|
Building Products 0.2%
|
|
|
|
|
Crane Group Ltd.
|
|
160
|
|
945
|
GWA International Ltd.
|
|
642
|
|
1,008
|
Hills Industries Ltd.
|
|
343
|
|
873
|
|
|
|
|
2,826
|
Casinos & Gaming 1.3%
|
|
|
|
|
Aristocrat Leisure Ltd.
|
|
910
|
|
2,282
|
Crown Ltd.
|
|
992
|
|
4,385
|
TABCORP Holdings Ltd.
|
|
1,250
|
|
5,649
|
Tatts Group Ltd.
|
|
3,099
|
|
5,111
|
|
|
|
|
17,427
|
Coal & Consumable Fuels 0.6%
|
|
|
|
|
Centennial Coal Co. Ltd.
|
|
806
|
|
1,861
|
Energy Resources of Australia Ltd.
|
|
157
|
|
1,481
|
Felix Resources Ltd.
|
|
210
|
|
1,643
|
Gloucester Coal Ltd.
|
|
97
|
|
275
|
Paladin Energy Ltd.*
|
|
1,491
|
|
2,233
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.3% continued
|
|
|
|
|
Coal & Consumable Fuels 0.6% (continued)
|
Riversdale Mining Ltd.*
|
|
430
|
|
$866
|
|
|
|
|
8,359
|
Commercial Printing 0.0%
(1)
|
|
|
|
|
PMP Ltd.
|
|
658
|
|
419
|
Computer & Electronics Retail 0.1%
|
|
|
|
|
JB Hi-Fi Ltd.
|
|
249
|
|
1,439
|
Construction & Engineering 0.9%
|
|
|
|
|
Ausenco Ltd.
|
|
135
|
|
387
|
Boart Longyear Group
|
|
3,600
|
|
1,033
|
Leighton Holdings Ltd.
|
|
350
|
|
5,727
|
Macmahon Holdings Ltd.
|
|
1,066
|
|
513
|
Monadelphous Group Ltd.
|
|
180
|
|
950
|
NRW Holdings Ltd.
|
|
535
|
|
219
|
United Group Ltd.
|
|
397
|
|
2,491
|
|
|
|
|
11,320
|
Construction & Farm Machinery & Heavy Trucks 0.1%
|
|
|
Bradken Ltd.
|
|
285
|
|
931
|
Construction Materials 0.6%
|
|
|
|
|
Adelaide Brighton Ltd.
|
|
805
|
|
1,206
|
Boral Ltd.
|
|
1,448
|
|
4,308
|
James Hardie Industries NV
|
|
1,020
|
|
2,860
|
|
|
|
|
8,374
|
Data Processing & Outsourced Services 0.5%
|
|
|
|
|
Computershare Ltd.
|
|
1,064
|
|
5,896
|
Iress Market Technology Ltd.
|
|
221
|
|
671
|
|
|
|
|
6,567
|
Department Stores 0.2%
|
|
|
|
|
David Jones Ltd.
|
|
1,160
|
|
2,350
|
Distributors 0.1%
|
|
|
|
|
Pacific Brands Ltd.
|
|
1,224
|
|
808
|
Diversified Banks 22.0%
|
|
|
|
|
Australia & New Zealand Banking Group Ltd.
|
|
4,731
|
|
54,185
|
Commonwealth Bank of Australia
|
|
3,215
|
|
85,480
|
National Australia Bank Ltd.
|
|
4,057
|
|
64,212
|
St. George Bank Ltd.
|
|
1,361
|
|
24,872
|
Westpac Banking Corp.
|
|
4,539
|
|
60,731
|
|
|
|
|
289,480
|
Diversified Chemicals 0.8%
|
|
|
|
|
Orica Ltd.
|
|
859
|
|
10,966
|
Diversified Commercial & Professional Services 1.7%
|
|
|
Brambles Ltd.
|
|
3,306
|
|
17,318
|
Cabcharge Australia Ltd.
|
|
289
|
|
1,306
|
Downer EDI Ltd.
|
|
765
|
|
2,463
|
Spotless Group Ltd.
|
|
474
|
|
782
|
Transfield Services Ltd.
|
|
349
|
|
937
|
|
|
|
|
22,806
|
Diversified Metals & Mining 14.8%
|
|
|
|
|
BHP Billiton Ltd.
|
|
8,044
|
|
148,544
|
Equinox Minerals Ltd.*
|
|
336
|
|
294
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
46
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2008
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.3% continued
|
|
|
|
|
Diversified Metals & Mining 14.8%
(continued)
|
Iluka Resources Ltd.*
|
|
867
|
|
$2,059
|
Independence Group NL
|
|
272
|
|
253
|
Kagara Ltd.*
|
|
395
|
|
138
|
Lynas Corp. Ltd.*
|
|
1,533
|
|
324
|
MacArthur Coal Ltd.
|
|
218
|
|
872
|
Minara Resources Ltd.
|
|
560
|
|
384
|
Mincor Resources NL
|
|
471
|
|
216
|
OM Holdings Ltd.
|
|
944
|
|
679
|
OZ Minerals Ltd.
|
|
7,507
|
|
4,680
|
Panoramic Resources Ltd.
|
|
441
|
|
314
|
Platinum Australia Ltd.*
|
|
540
|
|
210
|
Rio Tinto Ltd.
|
|
679
|
|
34,762
|
Straits Resources Ltd.
|
|
471
|
|
398
|
Western Areas NL*
|
|
262
|
|
700
|
|
|
|
|
194,827
|
Diversified REITs 1.5%
|
|
|
|
|
Abacus Property Group (REIT)
|
|
1,531
|
|
333
|
Babcock & Brown Japan Property Trust (REIT)
|
|
1,286
|
|
373
|
Dexus Property Group (REIT)
|
|
7,146
|
|
3,512
|
GPT Group (REIT)
|
|
10,384
|
|
5,104
|
Mirvac Group (REIT)
|
|
2,434
|
|
1,582
|
Stockland (REIT)
|
|
3,504
|
|
9,178
|
Valad Property Group (REIT)
|
|
3,894
|
|
216
|
|
|
|
|
20,298
|
Education Services 0.0%
(1)
|
|
|
|
|
ABC Learning Centres Ltd.
(2)
|
|
1,151
|
|
410
|
Electric Utilities 0.2%
|
|
|
|
|
Babcock & Brown Infrastructure Group
|
|
5,061
|
|
635
|
SP AusNet
|
|
2,486
|
|
1,804
|
|
|
|
|
2,439
|
Environmental & Facilities Services 0.1%
|
|
|
|
|
Transpacific Industries Group Ltd.
|
|
391
|
|
921
|
Fertilizers & Agricultural Chemicals 0.8%
|
|
|
|
|
Incitec Pivot Ltd.
|
|
2,922
|
|
7,711
|
Nufarm Ltd.
|
|
307
|
|
2,210
|
|
|
|
|
9,921
|
Food Distributors 0.7%
|
|
|
|
|
ABB Grain Ltd.
|
|
401
|
|
2,183
|
AWB Ltd.
|
|
831
|
|
1,436
|
Metcash Ltd.
|
|
1,862
|
|
4,951
|
|
|
|
|
8,570
|
Food Retail 4.1%
|
|
|
|
|
Woolworths Ltd.
|
|
2,909
|
|
53,354
|
Forest Products 0.1%
|
|
|
|
|
Great Southern Ltd.
|
|
660
|
|
157
|
Gunns Ltd.
|
|
1,558
|
|
1,218
|
Timbercorp Ltd.
|
|
703
|
|
236
|
|
|
|
|
1,611
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.3% continued
|
|
|
|
|
Gas Utilities 0.2%
|
|
|
|
|
APA Group
|
|
933
|
|
$1,804
|
Envestra Ltd.
|
|
888
|
|
375
|
|
|
|
|
2,179
|
General Merchandise Stores 0.2%
|
|
|
|
|
Harvey Norman Holdings Ltd.
|
|
1,435
|
|
2,443
|
Gold 1.9%
|
|
|
|
|
Avoca Resources Ltd.*
|
|
431
|
|
421
|
Kingsgate Consolidated Ltd.*
|
|
188
|
|
322
|
Lihir Gold Ltd.*
|
|
5,161
|
|
6,640
|
Newcrest Mining Ltd.
|
|
1,090
|
|
14,958
|
PanAust Ltd.*
|
|
3,447
|
|
500
|
Sino Gold Mining Ltd.*
|
|
570
|
|
1,316
|
St. Barbara Ltd.*
|
|
3,642
|
|
553
|
|
|
|
|
24,710
|
Health Care Services 0.7%
|
|
|
|
|
Primary Health Care Ltd.
|
|
745
|
|
2,261
|
Sonic Healthcare Ltd.
|
|
753
|
|
6,811
|
|
|
|
|
9,072
|
Health Care Distributors 0.1%
|
|
|
|
|
Sigma Pharmaceuticals Ltd.
|
|
2,090
|
|
1,737
|
Health Care Equipment 0.5%
|
|
|
|
|
Cochlear Ltd.
|
|
133
|
|
5,002
|
Resmed, Inc.*
|
|
668
|
|
2,181
|
|
|
|
|
7,183
|
Health Care Facilities 0.2%
|
|
|
|
|
Healthscope Ltd.
|
|
532
|
|
1,513
|
Ramsay Health Care Ltd.
|
|
241
|
|
1,606
|
|
|
|
|
3,119
|
Health Care Supplies 0.2%
|
|
|
|
|
Ansell Ltd.
|
|
319
|
|
2,652
|
Highways & Railtracks 1.4%
|
|
|
|
|
ConnectEast Group
|
|
3,670
|
|
1,756
|
Macquarie Infrastructure Group
|
|
5,012
|
|
6,481
|
Transurban Group
|
|
3,040
|
|
10,810
|
|
|
|
|
19,047
|
Hotels, Resorts & Cruise Lines 0.1%
|
|
|
|
|
Flight Centre Ltd.
|
|
121
|
|
1,114
|
Household Appliances 0.0%
(1)
|
|
|
|
|
GUD Holdings Ltd.
|
|
151
|
|
468
|
Human Resource & Employment Services 0.1%
|
|
|
Seek Ltd.
|
|
498
|
|
1,084
|
Hypermarkets & Super Centers 2.1%
|
|
|
|
|
Wesfarmers Ltd.
|
|
1,938
|
|
27,451
|
Independent Power Producers & Energy Traders 0.0%
(1)
|
|
|
Babcock & Brown Power
|
|
1,505
|
|
124
|
Industrial Conglomerates 0.3%
|
|
|
|
|
CSR Ltd.
|
|
2,383
|
|
3,396
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
47
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS S&P/ASX 200 INDEX FUND (AUSTRALIA)
(continued)
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.3% continued
|
|
|
|
|
Industrial REITs 0.3%
|
|
|
|
|
Bunnings Warehouse Property Trust (REIT)
|
|
582
|
|
$624
|
Goodman Group (REIT)
|
|
3,868
|
|
2,386
|
ING Industrial Fund (REIT)
|
|
2,416
|
|
534
|
|
|
|
|
3,544
|
Integrated Oil & Gas 1.7%
|
|
|
|
|
Origin Energy Ltd.
|
|
2,118
|
|
21,938
|
Integrated Telecommunication Services 5.7%
|
|
|
|
|
Singapore Telecommunications Ltd.
|
|
1,082
|
|
1,785
|
Telecom Corp. of New Zealand Ltd.
|
|
4,433
|
|
5,879
|
Telstra Corp. Ltd.
|
|
24,854
|
|
67,557
|
|
|
|
|
75,221
|
Internet Retail 0.0%
(1)
|
|
|
|
|
Wotif.com Holdings Ltd.
|
|
272
|
|
621
|
Investment Banking & Brokerage 1.0%
|
|
|
|
|
Macquarie Group Ltd.
|
|
674
|
|
13,073
|
Life & Health Insurance 1.7%
|
|
|
|
|
AMP Ltd.
|
|
4,500
|
|
16,062
|
AXA Asia Pacific Holdings Ltd.
|
|
1,983
|
|
5,756
|
|
|
|
|
21,818
|
Movies & Entertainment 0.5%
|
|
|
|
|
News Corp., Class B
|
|
705
|
|
6,907
|
Multi-line Insurance 0.1%
|
|
|
|
|
Tower Australia Group Ltd.
|
|
592
|
|
816
|
Multi-Utilities 0.9%
|
|
|
|
|
AGL Energy Ltd.
|
|
1,062
|
|
9,788
|
DUET Group
|
|
1,123
|
|
1,778
|
|
|
|
|
11,566
|
Office REITs 0.5%
|
|
|
|
|
Commonwealth Property Office Fund (REIT)
|
|
3,837
|
|
3,342
|
ING Office Fund (REIT)
|
|
3,058
|
|
2,229
|
Macquarie Office Trust (REIT)
|
|
4,440
|
|
835
|
Tishman Speyer Office Fund (REIT)
|
|
838
|
|
177
|
|
|
|
|
6,583
|
Office Services & Supplies 0.0%
(1)
|
|
|
|
|
Corporate Express Australia Ltd.
|
|
168
|
|
553
|
Oil & Gas Equipment & Services 0.3%
|
|
|
|
|
WorleyParsons Ltd.
|
|
421
|
|
4,152
|
Oil & Gas Exploration & Production 4.8%
|
|
|
|
|
Arrow Energy Ltd.*
|
|
1,446
|
|
2,366
|
Australian Worldwide Exploration Ltd.*
|
|
1,270
|
|
2,095
|
Beach Petroleum Ltd.
|
|
2,429
|
|
1,554
|
Linc Energy Ltd.*
|
|
468
|
|
911
|
Nexus Energy Ltd.*
|
|
1,203
|
|
433
|
Oil Search Ltd.
|
|
2,168
|
|
6,436
|
Queensland Gas Co. Ltd.*
|
|
1,547
|
|
5,869
|
Roc Oil Co. Ltd.*
|
|
723
|
|
293
|
Santos Ltd.
|
|
1,427
|
|
12,700
|
Woodside Petroleum Ltd.
|
|
1,102
|
|
30,449
|
|
|
|
|
63,106
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.3% continued
|
|
|
|
|
Oil & Gas Refining & Marketing 0.2%
|
|
|
|
|
Caltex Australia Ltd.
|
|
327
|
|
$2,026
|
Other Diversified Financial Services 0.1%
|
|
|
|
|
Babcock & Brown Ltd.
|
|
504
|
|
427
|
Challenger Financial Services Group Ltd.
|
|
1,122
|
|
1,214
|
|
|
|
|
1,641
|
Packaged Foods & Meats 0.3%
|
|
|
|
|
Australian Agricultural Co. Ltd.
|
|
316
|
|
396
|
Goodman Fielder Ltd.
|
|
3,213
|
|
3,508
|
|
|
|
|
3,904
|
Paper Packaging 0.6%
|
|
|
|
|
Amcor Ltd.
|
|
2,028
|
|
7,760
|
Paper Products 0.1%
|
|
|
|
|
PaperlinX Ltd.
|
|
1,498
|
|
1,384
|
Precious Metals & Minerals 0.1%
|
|
|
|
|
Aquarius Platinum Ltd.
|
|
570
|
|
1,136
|
Property & Casualty Insurance 4.5%
|
|
|
|
|
Insurance Australia Group Ltd.
|
|
4,465
|
|
11,194
|
QBE Insurance Group Ltd.
|
|
2,120
|
|
35,666
|
Suncorp-Metway Ltd.
|
|
2,352
|
|
12,429
|
|
|
|
|
59,289
|
Publishing 0.5%
|
|
|
|
|
APN News & Media Ltd.
|
|
726
|
|
1,154
|
Fairfax Media Ltd.
|
|
3,111
|
|
3,941
|
West Australian Newspapers Holdings Ltd.
|
|
424
|
|
1,721
|
|
|
|
|
6,816
|
Railroads 0.1%
|
|
|
|
|
Asciano Group
|
|
1,337
|
|
1,852
|
Real Estate Management & Development 0.4%
|
Australand Property Group (REIT)
|
|
1,902
|
|
$370
|
FKP Property Group
|
|
607
|
|
461
|
Lend Lease Corp. Ltd.
|
|
836
|
|
3,861
|
Sunland Group Ltd.
|
|
482
|
|
313
|
|
|
|
|
5,005
|
Regional Banks 0.6%
|
|
|
|
|
Bank of Queensland Ltd.
|
|
327
|
|
2,873
|
Bendigo and Adelaide Bank Ltd.
|
|
651
|
|
5,661
|
|
|
|
|
8,534
|
Retail REITs 4.0%
|
|
|
|
|
Centro Retail Group (REIT)
|
|
3,886
|
|
282
|
CFS Retail Property Trust (REIT)
|
|
4,706
|
|
6,334
|
Macquarie CountryWide Trust (REIT)
|
|
2,779
|
|
431
|
Macquarie DDR Trust (REIT)
|
|
2,216
|
|
136
|
Westfield Group (REIT)
|
|
4,205
|
|
45,497
|
|
|
|
|
52,680
|
Soft Drinks 0.5%
|
|
|
|
|
Coca-Cola Amatil Ltd.
|
|
1,173
|
|
6,230
|
Specialized Consumer Services 0.1%
|
|
|
|
|
Invocare Ltd.
|
|
235
|
|
760
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
48
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2008
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.3% continued
|
|
|
Specialized Finance 0.6%
|
|
|
|
|
ASX Ltd.
|
|
405
|
|
$7,989
|
Steel 1.6%
|
|
|
|
|
Atlas Iron Ltd.*
|
|
502
|
|
270
|
BlueScope Steel Ltd.
|
|
1,822
|
|
5,301
|
Fortescue Metals Group Ltd.*
|
|
3,127
|
|
6,086
|
Mount Gibson Iron Ltd.*
|
|
1,542
|
|
356
|
Murchison Metals Ltd.*
|
|
846
|
|
424
|
OneSteel Ltd.
|
|
2,070
|
|
4,712
|
Sims Group Ltd.
|
|
348
|
|
3,260
|
Sundance Resources Ltd.*
|
|
3,570
|
|
224
|
|
|
|
|
20,633
|
Trading Companies & Distributors 0.1%
|
|
|
|
|
Alesco Corp. Ltd.
|
|
216
|
|
798
|
Emeco Holdings Ltd.
|
|
1,534
|
|
582
|
|
|
|
|
1,380
|
Total Common Stocks
|
|
|
|
|
(Cost $2,502,950)
|
|
|
|
1,294,063
|
|
|
|
|
|
INVESTMENT COMPANIES 0.5%
|
|
|
|
|
Airport Services 0.1%
|
|
|
|
|
Australian Infrastructure Fund
|
|
928
|
|
995
|
Broadcasting & Cable TV 0.1%
|
|
|
|
|
Macquarie Communications Infrastructure Group
|
|
1,044
|
|
1,102
|
Macquarie Media Group Ltd.
|
|
401
|
|
333
|
|
|
|
|
1,435
|
Electric Utilities 0.2%
|
|
|
|
|
Spark Infrastructure Group
(3)
|
|
2,154
|
|
2,075
|
Independent Power Producers & Energy Traders 0.1%
|
Babcock & Brown Wind Partners
|
|
1,856
|
|
1,035
|
Multi-Utilities 0.0%
(1)
|
|
|
|
|
Hastings Diversified Utilities Fund
|
|
499
|
|
751
|
Total Investment Companies
|
|
|
|
|
(Cost $15,874)
|
|
|
|
6,291
|
|
|
|
|
|
|
|
NUMBER OF
WARRANTS
|
|
VALUE
|
WARRANTS 0.0%
(1)
|
Oil & Gas Exploration & Production
0.0%
(1)
|
Beach Petroleum Ltd., expiring 6/30/10, strike price 2.00 AUD*
|
|
205
|
|
6
|
Total Warrants
|
|
|
|
|
(Cost $0)
|
|
|
|
6
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(4)(5)
|
|
235
|
|
$235
|
Total Short-Term Investment
|
|
|
|
|
(Cost $235)
|
|
|
|
235
|
|
|
|
|
|
Total Investments 98.8%
|
|
|
|
|
(Cost $2,519,059)
|
|
|
|
1,300,595
|
Other Assets less Liabilities 1.2%
|
|
|
|
15,306
|
NET ASSETS 100.0%
|
|
|
|
$1,315,901
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) Security fair valued in
accordance with procedures adopted by the Board of Trustees. At October 31, 2008, the value of these securities amounted to $410, or 0.0% of net assets.
(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is
determined by the valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of the NETS Funds. At October 31, 2008, the value of these securities amounted to
$2,075, or 0.2% of net assets.
(4) The rate quoted is the annualized seven-day net yield of the Fund at period end.
(5) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank, N.A. is the custodian and transfer agent for each Fund. Certain officers of
the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $235 of the JPMorgan Prime Money Market Fund, Morgan Shares.
REIT Real Estate Investment Trust
Percentages shown
are based on Net Assets.
All securities are concentrated within Australia with the exception of the JPMorgan Prime Money Market Fund, Morgan
Shares, which is concentrated in the United States.
See Notes to Financial
Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
49
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS S&P/ASX 200 INDEX FUND (AUSTRALIA)
(continued)
|
OCTOBER 31, 2008
|
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Agricultural Products
|
|
0.1%
|
Air Freight & Logistics
|
|
0.4
|
Airlines
|
|
0.6
|
Airport Services
|
|
0.4
|
Aluminum
|
|
0.4
|
Apparel, Accessories & Luxury Goods
|
|
0.3
|
Asset Management & Custody Banks
|
|
0.5
|
Biotechnology
|
|
2.6
|
Brewers
|
|
1.6
|
Broadcasting & Cable TV
|
|
0.4
|
Building Products
|
|
0.2
|
Casinos & Gaming
|
|
1.3
|
Coal & Consumable Fuels
|
|
0.6
|
Commercial Printing
|
|
0.0
(6)
|
Computer & Electronics Retail
|
|
0.1
|
Construction & Engineering
|
|
0.9
|
Construction & Farm Machinery & Heavy Trucks
|
|
0.1
|
Construction Materials
|
|
0.6
|
Data Processing & Outsourced Services
|
|
0.5
|
Department Stores
|
|
0.2
|
Distributors
|
|
0.1
|
Diversified Banks
|
|
22.3
|
Diversified Chemicals
|
|
0.8
|
Diversified Commercial & Professional Services
|
|
1.8
|
Diversified Metals & Mining
|
|
15.0
|
Diversified REITs
|
|
1.6
|
Education Services
|
|
0.0
(6)
|
Electric Utilities
|
|
0.4
|
Environmental & Facilities Services
|
|
0.1
|
Fertilizers & Agricultural Chemicals
|
|
0.8
|
Food Distributors
|
|
0.7
|
Food Retail
|
|
4.1
|
Forest Products
|
|
0.1
|
Gas Utilities
|
|
0.2
|
General Merchandise Stores
|
|
0.2
|
Gold
|
|
1.9
|
Health Care Services
|
|
0.7
|
Health Care Distributors
|
|
0.1
|
Health Care Equipment
|
|
0.5
|
Health Care Facilities
|
|
0.2
|
Health Care Supplies
|
|
0.2
|
Highways & Railtracks
|
|
1.5
|
Hotels, Resorts & Cruise Lines
|
|
0.1
|
Household Appliances
|
|
0.0
(6)
|
Human Resource & Employment Services
|
|
0.1
|
Hypermarkets & Super Centers
|
|
2.1
|
Independent Power Producers & Energy Traders
|
|
0.1
|
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Industrial Conglomerates
|
|
0.3%
|
Industrial REITs
|
|
0.3
|
Integrated Oil & Gas
|
|
1.7
|
Integrated Telecommunication Services
|
|
5.8
|
Internet Retail
|
|
0.0
(6)
|
Investment Banking & Brokerage
|
|
1.0
|
Life & Health Insurance
|
|
1.7
|
Movies & Entertainment
|
|
0.5
|
Multi-line Insurance
|
|
0.1
|
Multi-Utilities
|
|
0.9
|
Office REITs
|
|
0.5
|
Office Services & Supplies
|
|
0.0
(6)
|
Oil & Gas Equipment & Services
|
|
0.3
|
Oil & Gas Exploration & Production
|
|
4.8
|
Oil & Gas Refining & Marketing
|
|
0.2
|
Other Diversified Financial Services
|
|
0.1
|
Packaged Foods & Meats
|
|
0.3
|
Paper Packaging
|
|
0.6
|
Paper Products
|
|
0.1
|
Precious Metals & Minerals
|
|
0.1
|
Property & Casualty Insurance
|
|
4.6
|
Publishing
|
|
0.5
|
Railroads
|
|
0.1
|
Real Estate Management & Development
|
|
0.4
|
Regional Banks
|
|
0.7
|
Retail REITs
|
|
4.0
|
Soft Drinks
|
|
0.5
|
Specialized Consumer Services
|
|
0.1
|
Specialized Finance
|
|
0.6
|
Steel
|
|
1.6
|
Trading Companies & Distributors
|
|
0.1
|
Short-Term Investment
|
|
0.0
(6)
|
Total
|
|
100.0%
|
(6) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
50
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS S&P/MIB INDEX FUND (ITALY)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 96.3%
|
|
|
|
|
Aerospace & Defense 2.9%
|
|
|
|
|
Finmeccanica SpA
|
|
3,132
|
|
$38,442
|
Apparel, Accessories & Luxury Goods 0.4%
|
|
|
|
|
Bulgari SpA
|
|
704
|
|
5,205
|
Automobile Manufacturers 2.3%
|
|
|
|
|
Fiat SpA
|
|
3,962
|
|
30,973
|
Broadcasting & Cable TV 1.5%
|
|
|
|
|
Mediaset SpA
|
|
3,635
|
|
19,567
|
Casinos & Gaming 1.5%
|
|
|
|
|
Lottomatica SpA
|
|
291
|
|
6,734
|
Luxottica Group SpA
|
|
675
|
|
13,473
|
|
|
|
|
20,207
|
Construction & Engineering 0.3%
|
|
|
|
|
Impregilo SpA*
|
|
1,314
|
|
3,449
|
Construction Materials 0.6%
|
|
|
|
|
Buzzi Unicem SpA
|
|
353
|
|
4,235
|
Italcementi SpA
|
|
312
|
|
3,584
|
|
|
|
|
7,819
|
Diversified Banks 28.9%
|
|
|
|
|
Banca Monte dei Paschi di Siena SpA
|
|
12,762
|
|
24,436
|
Banca Popolare di Milano Scarl
|
|
7,240
|
|
41,772
|
Banco Popolare SC
|
|
4,476
|
|
54,998
|
Intesa Sanpaolo SpA
|
|
31,404
|
|
113,194
|
UniCredit SpA
|
|
34,497
|
|
82,632
|
Unione di Banche Italiane SCPA
|
|
3,924
|
|
65,333
|
|
|
|
|
382,365
|
Electric Utilities 8.4%
|
|
|
|
|
Enel SpA
|
|
13,802
|
|
91,358
|
Terna Rete Elettrica Nazionale SpA
|
|
6,181
|
|
19,791
|
|
|
|
|
111,149
|
Electrical Components & Equipment 0.5%
|
|
|
|
|
Prysmian SpA
|
|
500
|
|
5,992
|
Footwear 0.2%
|
|
|
|
|
Geox SpA
|
|
351
|
|
2,562
|
Gas Utilities 1.5%
|
|
|
|
|
Snam Rete Gas SpA
|
|
3,994
|
|
20,068
|
Highways & Railtracks 1.9%
|
|
|
|
|
Atlantia SpA
|
|
1,353
|
|
24,551
|
Integrated Oil & Gas 15.6%
|
|
|
|
|
ENI SpA
|
|
8,787
|
|
206,468
|
Integrated Telecommunication Services 4.7%
|
|
|
|
|
Fastweb*
|
|
38
|
|
668
|
Telecom Italia SpA
|
|
54,666
|
|
62,041
|
|
|
|
|
62,709
|
Investment Banking & Brokerage 4.5%
|
|
|
|
|
Mediobanca SpA
|
|
5,234
|
|
58,936
|
Life & Health Insurance 1.3%
|
|
|
|
|
Alleanza Assicurazioni SpA
|
|
2,037
|
|
13,432
|
Mediolanum SpA
|
|
1,017
|
|
3,923
|
|
|
|
|
17,355
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 96.3% continued
|
|
|
|
|
Multi-line Insurance 8.5%
|
|
|
|
|
Assicurazioni Generali SpA
|
|
4,241
|
|
$105,728
|
Unipol Gruppo Finanziario SpA
|
|
3,459
|
|
6,053
|
|
|
|
|
111,781
|
Multi-Utilities 0.8%
|
|
|
|
|
A2A SpA
|
|
6,082
|
|
10,990
|
Oil & Gas Equipment & Services 4.4%
|
|
|
|
|
Saipem SpA
|
|
1,832
|
|
33,940
|
Tenaris SA
|
|
2,471
|
|
23,970
|
|
|
|
|
57,910
|
Packaged Foods & Meats 2.0%
|
|
|
|
|
Parmalat SpA
|
|
15,164
|
|
26,343
|
Property & Casualty Insurance 0.4%
|
|
|
|
|
Fondiaria-Sai SpA
|
|
307
|
|
5,691
|
Publishing 0.3%
|
|
|
|
|
Arnoldo Mondadori Editore SpA
|
|
499
|
|
1,738
|
Gruppo Editoriale LEspresso SpA
|
|
674
|
|
996
|
Seat Pagine Gialle SpA*
|
|
20,774
|
|
1,797
|
|
|
|
|
4,531
|
Restaurants 0.3%
|
|
|
|
|
Autogrill SpA
|
|
451
|
|
3,571
|
Semiconductors 2.3%
|
|
|
|
|
STMicroelectronics NV
|
|
3,808
|
|
30,928
|
Tires & Rubber 0.3%
|
|
|
|
|
Pirelli & C. SpA
|
|
11,672
|
|
4,070
|
Total Common Stocks
|
|
|
|
|
(Cost $2,208,182)
|
|
|
|
1,273,632
|
|
|
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares,
2.42%
(2)
(
3)
|
|
255
|
|
255
|
Total Short-Term Investment
|
|
|
|
|
(Cost $255)
|
|
|
|
255
|
|
|
|
|
|
Total Investments 96.3%
|
|
|
|
|
(Cost $2,208,437)
|
|
|
|
1,273,887
|
Other Assets less Liabilities 3.7%
|
|
|
|
48,662
|
NET ASSETS 100.0%
|
|
|
|
$1,322,549
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $255 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
Percentages shown are based on Net Assets.
All securities are concentrated within Italy with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United
States.
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
51
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS S&P/MIB INDEX FUND (ITALY)
(continued)
|
OCTOBER 31, 2008
|
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Aerospace & Defense
|
|
3.0%
|
Apparel, Accessories & Luxury Goods
|
|
0.4
|
Automobile Manufacturers
|
|
2.4
|
Broadcasting & Cable TV
|
|
1.5
|
Casinos & Gaming
|
|
1.6
|
Construction & Engineering
|
|
0.3
|
Construction Materials
|
|
0.6
|
Diversified Banks
|
|
30.0
|
Electric Utilities
|
|
8.7
|
Electrical Components & Equipment
|
|
0.5
|
Footwear
|
|
0.2
|
Gas Utilities
|
|
1.6
|
Highways & Railtracks
|
|
1.9
|
Integrated Oil & Gas
|
|
16.2
|
Integrated Telecommunication Services
|
|
4.9
|
Investment Banking & Brokerage
|
|
4.6
|
Life & Health Insurance
|
|
1.4
|
Multi-line Insurance
|
|
8.8
|
Multi-Utilities
|
|
0.9
|
Oil & Gas Equipment & Services
|
|
4.5
|
Packaged Foods & Meats
|
|
2.1
|
Property & Casualty Insurance
|
|
0.5
|
Publishing
|
|
0.4
|
Restaurants
|
|
0.3
|
Semiconductors
|
|
2.4
|
Tires & Rubber
|
|
0.3
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
52
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS TA-25 INDEX FUND (ISRAEL)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6%
|
|
|
|
|
Banks 22.9%
|
|
|
|
|
Bank Hapoalim BM
|
|
59,369
|
|
$131,940
|
Bank Leumi Le-Israel BM
|
|
51,509
|
|
133,714
|
Israel Discount Bank Ltd., Class A
|
|
30,884
|
|
30,096
|
Mizrahi Tefahot Bank Ltd.
|
|
7,603
|
|
39,556
|
|
|
|
|
335,306
|
Chemical, Rubber & Plastic 31.8%
|
|
|
|
|
Israel Chemicals Ltd.
|
|
15,857
|
|
154,052
|
Makhteshim-Agan Industries Ltd.
|
|
15,313
|
|
57,202
|
Oil Refineries Ltd.
|
|
50,785
|
|
25,707
|
Perrigo Co.
|
|
2,098
|
|
69,342
|
Teva Pharmaceutical Industries Ltd.
|
|
3,908
|
|
159,737
|
|
|
|
|
466,040
|
Communications & Media 16.1%
|
|
|
|
|
Bezeq Israeli Telecommunication Corp. Ltd.
|
|
43,808
|
|
65,221
|
Cellcom Israel Ltd.
|
|
2,471
|
|
70,165
|
Partner Communications Co. Ltd.
|
|
5,345
|
|
99,442
|
|
|
|
|
234,828
|
Electrical & Electronics 14.0%
|
|
|
|
|
Elbit Systems Ltd.
|
|
1,421
|
|
67,891
|
Nice Systems Ltd.*
|
|
3,231
|
|
68,219
|
Ormat Industries Ltd.
|
|
3,737
|
|
26,584
|
VeriFone Holdings, Inc.*
|
|
4,140
|
|
41,330
|
|
|
|
|
204,024
|
Food 3.2%
|
|
|
|
|
Osem Investments Ltd.
|
|
2,306
|
|
26,404
|
Strauss Group Ltd.
|
|
2,028
|
|
20,861
|
|
|
|
|
47,265
|
Insurance 0.6%
|
|
|
|
|
Delek Automotive Systems Ltd.
|
|
1,472
|
|
9,125
|
Investment & Holdings 8.7%
|
|
|
|
|
Africa Israel Investments Ltd.
|
|
906
|
|
13,194
|
Delek Group Ltd.
|
|
288
|
|
18,632
|
Discount Investment Corp.
|
|
1,600
|
|
18,541
|
Israel Corp. Ltd. (The)
|
|
131
|
|
59,929
|
Paz Oil Co. Ltd.
|
|
171
|
|
16,988
|
|
|
|
|
127,284
|
Real Estate & Construction 1.3%
|
|
|
|
|
Gazit Globe Ltd.
|
|
3,498
|
|
18,729
|
Total Common Stocks
|
|
|
|
|
(Cost $2,456,938)
|
|
|
|
1,442,601
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
429
|
|
$429
|
Total Short-Term Investment
|
|
|
|
|
(Cost $429)
|
|
|
|
429
|
|
|
|
|
|
Total Investments 98.6%
|
|
|
|
|
(Cost $2,457,367)
|
|
|
|
1,443,030
|
Other Assets less Liabilities 1.4%
|
|
|
|
20,522
|
NET ASSETS 100.0%
|
|
|
|
$1,463,552
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the
annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank,
N.A. is the custodian and transfer agent for each Fund. Certain officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $429 of
the JPMorgan Prime Money Market Fund, Morgan Shares.
Percentages shown are based on Net Assets.
All securities are concentrated within Israel with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United
States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Banks
|
|
23.2%
|
Chemical, Rubber & Plastic
|
|
32.3
|
Communications & Media
|
|
16.3
|
Electrical & Electronics
|
|
14.2
|
Food
|
|
3.3
|
Insurance
|
|
0.6
|
Investment & Holdings
|
|
8.8
|
Real Estate & Construction
|
|
1.3
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
53
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS TOKYO STOCK EXCHANGE REIT INDEX FUND
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.2%
|
|
|
|
|
Real Estate 98.2%
|
|
|
|
|
Advance Residence Investment Corp. (REIT)
|
|
6
|
|
$14,581
|
BLife Investment Corp. (REIT)
|
|
4
|
|
5,572
|
Creed Office Investment Corp. (REIT)
|
|
10
|
|
6,528
|
Crescendo Investment Corp. (REIT)
|
|
11
|
|
11,923
|
DA Office Investment Corp. (REIT)
|
|
27
|
|
50,486
|
FC Residential Investment Corp. (REIT)
|
|
3
|
|
4,481
|
Frontier Real Estate Investment Corp. (REIT)
|
|
12
|
|
64,667
|
Fukuoka REIT Corp. (REIT)
|
|
9
|
|
34,774
|
Global One Real Estate Investment Corp. (REIT)
|
|
8
|
|
63,772
|
Hankyu REIT, Inc. (REIT)
|
|
7
|
|
29,537
|
Industrial & Infrastructure Fund Investment Corp. (REIT)
|
|
6
|
|
15,587
|
Japan Excellent, Inc. (REIT)
|
|
12
|
|
39,532
|
Japan Hotel and Resort, Inc. (REIT)
|
|
7
|
|
8,228
|
Japan Logistics Fund, Inc. (REIT)
|
|
9
|
|
55,638
|
Japan Prime Realty Investment Corp. (REIT)
|
|
49
|
|
85,544
|
Japan Real Estate Investment Corp. (REIT)
|
|
34
|
|
296,960
|
Japan Retail Fund Investment Corp. (REIT)
|
|
24
|
|
85,653
|
Japan Single-Residence REIT, Inc. (REIT)
|
|
4
|
|
1,749
|
Joint REIT Investment Corp. (REIT)
|
|
10
|
|
8,927
|
Kenedix Realty Investment Corp. (REIT)
|
|
15
|
|
21,352
|
LaSalle Japan REIT, Inc. (REIT)
|
|
9
|
|
9,792
|
LCP Investment Corp. (REIT)
|
|
7
|
|
3,491
|
MID REIT, Inc. (REIT)
|
|
14
|
|
18,505
|
Mori Hills REIT Investment Corp. (REIT)
|
|
13
|
|
34,499
|
Mori Trust Sogo REIT, Inc. (REIT)
|
|
11
|
|
85,114
|
Nippon Accommodations Fund, Inc. (REIT)
|
|
9
|
|
43,376
|
Nippon Bulding Fund, Inc. (REIT)
|
|
42
|
|
397,153
|
Nippon Commercial Investment Corp. (REIT)
|
|
21
|
|
12,683
|
Nippon Hotel Fund Investment Corp. (REIT)
|
|
3
|
|
3,203
|
Nippon Residential Investment Corp. (REIT)
|
|
19
|
|
10,046
|
Nomura Real Estate Office Fund Corp. (REIT)
|
|
24
|
|
134,459
|
Nomura Real Estate Residential Fund Corp. (REIT)
|
|
8
|
|
29,202
|
Orix JREIT, Inc. (REIT)
|
|
18
|
|
80,895
|
Premier Investment Corp. (REIT)
|
|
11
|
|
23,488
|
Prospect Residential Investment Corp. (REIT)
|
|
9
|
|
4,914
|
re-plus residential investment, Inc. (REIT)
|
|
14
|
|
14,235
|
TGR Investment, Inc. (REIT)
|
|
7
|
|
4,840
|
Tokyu REIT, Inc. (REIT)
|
|
13
|
|
73,757
|
Top REIT, Inc. (REIT)
|
|
12
|
|
31,711
|
United Urban Investment Corp. (REIT)
|
|
16
|
|
47,260
|
Total Common Stocks
|
|
|
|
|
(Cost $2,462,191)
|
|
|
|
1,968,114
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
SHORT-TERM INVESTMENT 0.4%
|
|
|
|
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(1)(2)
|
|
7,046
|
|
$7,046
|
Total Short-Term Investment
|
|
|
|
|
(Cost $7,046)
|
|
|
|
7,046
|
|
|
|
|
|
Total Investments 98.6%
|
|
|
|
|
(Cost $2,469,237)
|
|
|
|
1,975,160
|
Other Assets less Liabilities 1.4%
|
|
|
|
28,092
|
NET ASSETS 100.0%
|
|
|
|
$2,003,252
|
(1) The rate quoted is the annualized seven-day net yield of the Fund at period end.
(2) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank, N.A. is the custodian and transfer agent for each Fund. Certain officers of
the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $7,046 of the JPMorgan Prime Money Market Fund, Morgan Shares.
REIT Real Estate Investment Trust
Percentages shown
are based on Net Assets.
All securities are concentrated within Japan with the exception of the JPMorgan Prime Money Market Fund, Morgan
Shares, which is concentrated in the United States.
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Real Estate
|
|
99.6%
|
Short-Term Investment
|
|
0.4
|
Total
|
|
100.0%
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
54
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
NETS TOPIX
®
INDEX FUND (JAPAN)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6%
|
|
|
|
|
Air Transportation 0.6%
|
|
|
|
|
All Nippon Airways Co. Ltd.
|
|
2,000
|
|
$7,585
|
Japan Airlines Corp.*
|
|
4,000
|
|
9,029
|
|
|
|
|
16,614
|
Banks 10.7%
|
|
|
|
|
Awa Bank Ltd. (The)
|
|
1,000
|
|
6,172
|
Bank of Kyoto Ltd. (The)
|
|
1,000
|
|
10,371
|
Bank of Nagoya Ltd. (The)
|
|
1,000
|
|
5,918
|
Bank of Yokohama Ltd. (The)
|
|
2,000
|
|
9,415
|
Chiba Bank Ltd. (The)
|
|
1,000
|
|
4,769
|
Chuo Mitsui Trust Holdings, Inc.
|
|
2,000
|
|
7,605
|
Fukui Bank Ltd. (The)
|
|
1,000
|
|
3,335
|
Fukuoka Financial Group, Inc.
|
|
2,000
|
|
6,426
|
Gunma Bank Ltd. (The)
|
|
1,000
|
|
5,002
|
Hiroshima Bank Ltd. (The)
|
|
2,000
|
|
7,280
|
Hokkoku Bank Ltd. (The)
|
|
1,000
|
|
3,711
|
Hokuhoku Financial Group, Inc.
|
|
3,000
|
|
5,826
|
Hyakugo Bank Ltd. (The)
|
|
1,000
|
|
5,562
|
Hyakujushi Bank Ltd. (The)
|
|
1,000
|
|
4,942
|
Joyo Bank Ltd. (The)
|
|
1,000
|
|
4,647
|
Kiyo Holdings, Inc.
|
|
3,000
|
|
4,789
|
Mitsubishi UFJ Financial Group, Inc.
|
|
13,140
|
|
79,895
|
Mizuho Financial Group Inc.
|
|
14
|
|
33,025
|
Mizuho Trust & Banking Co. Ltd.
|
|
3,000
|
|
3,447
|
Nanto Bank Ltd. (The)
|
|
1,000
|
|
4,647
|
Ogaki Kyoritsu Bank Ltd. (The)
|
|
1,000
|
|
4,891
|
Resona Holdings, Inc.
|
|
7
|
|
7,089
|
Shinsei Bank Ltd.
|
|
2,000
|
|
2,989
|
Shizuoka Bank Ltd. (The)
|
|
1,000
|
|
8,643
|
Sumitomo Mitsui Financial Group, Inc.
|
|
9
|
|
34,957
|
Sumitomo Trust & Banking Co. Ltd. (The)
|
|
2,000
|
|
8,907
|
Toho Bank Ltd. (The)
|
|
1,000
|
|
4,199
|
|
|
|
|
288,459
|
Chemicals 5.7%
|
|
|
|
|
Asahi Kasei Corp.
|
|
2,000
|
|
7,382
|
FUJIFILM Holdings Corp.
|
|
600
|
|
13,086
|
JSR Corp.
|
|
500
|
|
5,557
|
Kansai Paint Co. Ltd.
|
|
1,000
|
|
5,450
|
Kao Corp.
|
|
1,000
|
|
28,673
|
Kose Corp.
|
|
200
|
|
5,135
|
Kuraray Co. Ltd.
|
|
500
|
|
3,716
|
Lion Corp.
|
|
1,000
|
|
6,477
|
Mandom Corp.
|
|
100
|
|
2,674
|
Mitsubishi Chemical Holdings Corp.
|
|
1,500
|
|
5,948
|
Mitsubishi Gas Chemical Co., Inc.
|
|
2,000
|
|
7,219
|
Mitsui Chemicals, Inc.
|
|
2,000
|
|
6,812
|
Nitto Denko Corp.
|
|
300
|
|
6,528
|
Sekisui Chemical Co. Ltd.
|
|
1,000
|
|
5,755
|
Shin-Etsu Chemical Co. Ltd.
|
|
400
|
|
20,620
|
Showa Denko KK
|
|
4,000
|
|
5,897
|
Sumitomo Chemical Co. Ltd.
|
|
2,000
|
|
5,958
|
Taiyo Nippon Sanso Corp.
|
|
1,000
|
|
6,202
|
Ube Industries Ltd.
|
|
2,000
|
|
4,088
|
|
|
|
|
153,177
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6% continued
|
Communication 5.9%
|
|
|
|
|
Capcom Co. Ltd.
|
|
100
|
|
$2,196
|
Fuji Media Holdings, Inc.
|
|
6
|
|
7,150
|
KDDI Corp.
|
|
4
|
|
23,671
|
Konami Corp.
|
|
200
|
|
3,492
|
Nippon Telegraph & Telephone Corp.
|
|
10
|
|
39,858
|
Nippon Television Network Corp.
|
|
80
|
|
7,614
|
Nomura Research Institute Ltd.
|
|
300
|
|
4,807
|
NTT Data Corp.
|
|
2
|
|
6,507
|
NTT DoCoMo, Inc.
|
|
21
|
|
33,096
|
Oracle Corp. Japan
|
|
100
|
|
4,281
|
Softbank Corp.
|
|
1,000
|
|
9,659
|
SQUARE ENIX HOLDINGS CO. LTD.
|
|
200
|
|
4,982
|
Toho Co. Ltd./Tokyo
|
|
300
|
|
5,616
|
Yahoo! Japan Corp.
|
|
22
|
|
7,124
|
|
|
|
|
160,053
|
Construction 2.0%
|
|
|
|
|
Daito Trust Construction Co. Ltd.
|
|
200
|
|
8,337
|
Daiwa House Industry Co. Ltd.
|
|
1,000
|
|
8,714
|
Kajima Corp.
|
|
2,000
|
|
5,633
|
Obayashi Corp.
|
|
1,000
|
|
4,789
|
Sekisui House Ltd.
|
|
1,000
|
|
9,812
|
Shimizu Corp.
|
|
1,000
|
|
4,809
|
Sumitomo Forestry Co. Ltd.
|
|
900
|
|
5,765
|
Taisei Corp.
|
|
3,000
|
|
6,772
|
|
|
|
|
54,631
|
Electric Appliances 11.6%
|
|
|
|
|
Advantest Corp.
|
|
300
|
|
4,194
|
Brother Industries Ltd.
|
|
700
|
|
4,698
|
Canon, Inc.
|
|
1,300
|
|
44,149
|
Casio Computer Co. Ltd.
|
|
600
|
|
3,782
|
Fanuc Ltd.
|
|
200
|
|
12,933
|
Fujitsu Ltd.
|
|
3,000
|
|
11,500
|
Hamamatsu Photonics KK
|
|
300
|
|
6,574
|
Hirose Electric Co. Ltd.
|
|
100
|
|
8,541
|
Hitachi Ltd.
|
|
3,000
|
|
13,818
|
Ibiden Co. Ltd.
|
|
300
|
|
5,469
|
Konica Minolta Holdings, Inc.
|
|
1,000
|
|
6,385
|
Kyocera Corp.
|
|
200
|
|
11,469
|
Mitsubishi Electric Corp.
|
|
2,000
|
|
12,161
|
Murata Manufacturing Co. Ltd.
|
|
300
|
|
10,066
|
NEC Corp.
|
|
3,000
|
|
8,632
|
Nidec Corp.
|
|
100
|
|
5,074
|
Omron Corp.
|
|
600
|
|
8,334
|
Panasonic Corp.
|
|
2,000
|
|
30,747
|
Ricoh Co. Ltd.
|
|
1,000
|
|
10,442
|
Rohm Co. Ltd.
|
|
200
|
|
9,375
|
Sanyo Electric Co. Ltd.*
|
|
3,000
|
|
4,423
|
Seiko Epson Corp.
|
|
300
|
|
4,426
|
Sharp Corp.
|
|
1,000
|
|
6,985
|
Sony Corp.
|
|
1,300
|
|
29,344
|
Stanley Electric Co. Ltd.
|
|
500
|
|
6,182
|
TDK Corp.
|
|
200
|
|
6,568
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
55
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS TOPIX
®
INDEX FUND (JAPAN)
(continued)
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6% continued
|
Electric Appliances 11.6% (continued)
|
|
|
|
|
Tokyo Electron Ltd.
|
|
200
|
|
$6,528
|
Toshiba Corp.
|
|
4,000
|
|
14,276
|
Ushio, Inc.
|
|
400
|
|
5,340
|
|
|
|
|
312,415
|
Electric Power and Gas 6.3%
|
|
|
|
|
Chubu Electric Power Co., Inc.
|
|
700
|
|
18,149
|
Chugoku Electric Power Co., Inc. (The)
|
|
300
|
|
7,229
|
Electric Power Development Co. Ltd.
|
|
300
|
|
8,831
|
Hokkaido Electric Power Co., Inc.
|
|
300
|
|
6,696
|
Hokuriku Electric Power Co.
|
|
300
|
|
7,885
|
Kansai Electric Power Co., Inc. (The)
|
|
800
|
|
19,929
|
Kyushu Electric Power Co., Inc.
|
|
500
|
|
11,413
|
Osaka Gas Co. Ltd.
|
|
3,000
|
|
10,493
|
Saibu Gas Co. Ltd.
|
|
2,000
|
|
4,921
|
Shikoku Electric Power Co., Inc.
|
|
300
|
|
8,724
|
Toho Gas Co. Ltd.
|
|
1,000
|
|
5,735
|
Tohoku Electric Power Co., Inc.
|
|
500
|
|
11,185
|
Tokyo Electric Power Co., Inc. (The)
|
|
1,300
|
|
36,614
|
Tokyo Gas Co. Ltd.
|
|
3,000
|
|
12,811
|
|
|
|
|
170,615
|
Fishery, Agriculture and Forestry 0.2%
|
|
|
|
|
Sakata Seed Corp.
|
|
300
|
|
4,270
|
Foods 3.1%
|
|
|
|
|
Ajinomoto Co., Inc.
|
|
1,000
|
|
8,510
|
Asahi Breweries Ltd.
|
|
500
|
|
8,150
|
Coca-Cola West Holdings Co. Ltd.
|
|
200
|
|
3,986
|
Fuji Oil Co. Ltd.
|
|
400
|
|
4,555
|
Japan Tobacco, Inc.
|
|
6
|
|
20,986
|
Kirin Holdings Co. Ltd.
|
|
1,000
|
|
10,849
|
Nippon Flour Mills Co. Ltd.
|
|
1,000
|
|
4,555
|
NISSIN FOODS HOLDINGS CO. LTD.
|
|
100
|
|
2,832
|
Sapporo Holdings Ltd.
|
|
1,000
|
|
5,409
|
Snow Brand Milk Products Co. Ltd.
|
|
1,500
|
|
5,674
|
Takara Holdings, Inc.
|
|
1,000
|
|
4,677
|
Yakult Honsha Co. Ltd.
|
|
100
|
|
2,466
|
|
|
|
|
82,649
|
Glass and Ceramics Products 1.2%
|
|
|
|
|
Asahi Glass Co. Ltd.
|
|
2,000
|
|
12,323
|
NGK Insulators Ltd.
|
|
1,000
|
|
10,147
|
Nippon Electric Glass Co. Ltd.
|
|
1,000
|
|
5,857
|
Nippon Sheet Glass Co. Ltd.
|
|
1,000
|
|
3,203
|
|
|
|
|
31,530
|
Insurance 2.5%
|
|
|
|
|
Aioi Insurance Co. Ltd.
|
|
1,000
|
|
4,016
|
Mitsui Sumitomo Insurance Group Holdings, Inc.
|
|
400
|
|
10,879
|
Nipponkoa Insurance Co. Ltd.
|
|
1,000
|
|
5,887
|
Sompo Japan Insurance, Inc.
|
|
1,000
|
|
6,772
|
Sony Financial Holdings, Inc.
|
|
1
|
|
3,223
|
T&D Holdings, Inc.
|
|
250
|
|
9,253
|
Tokio Marine Holdings, Inc.
|
|
900
|
|
26,904
|
|
|
|
|
66,934
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6% continued
|
Iron and Steel 2.8%
|
|
|
|
|
JFE Holdings, Inc.
|
|
700
|
|
$17,402
|
Kobe Steel Ltd.
|
|
5,000
|
|
7,931
|
Maruichi Steel Tube Ltd.
|
|
200
|
|
4,484
|
Nippon Steel Corp.
|
|
7,000
|
|
23,061
|
Nisshin Steel Co. Ltd.
|
|
4,000
|
|
5,247
|
Sumitomo Metal Industries Ltd.
|
|
5,000
|
|
12,557
|
Yodogawa Steel Works Ltd.
|
|
1,000
|
|
4,138
|
|
|
|
|
74,820
|
Land Transportation 4.8%
|
|
|
|
|
Central Japan Railway Co.
|
|
2
|
|
16,248
|
East Japan Railway Co.
|
|
3
|
|
21,139
|
Hankyu Hanshin Holdings, Inc.
|
|
2,000
|
|
9,354
|
Keihan Electric Railway Co. Ltd.
|
|
1,000
|
|
4,545
|
Keihin Electric Express Railway Co. Ltd.
|
|
1,000
|
|
7,707
|
Keio Corp.
|
|
1,000
|
|
5,125
|
Kintetsu Corp.
|
|
2,000
|
|
7,626
|
Nagoya Railroad Co. Ltd.
|
|
2,000
|
|
6,182
|
Nankai Electric Railway Co. Ltd.
|
|
1,000
|
|
4,352
|
Nippon Express Co. Ltd.
|
|
2,000
|
|
7,931
|
Odakyu Electric Railway Co. Ltd.
|
|
1,000
|
|
7,239
|
Tobu Railway Co. Ltd.
|
|
1,000
|
|
5,033
|
Tokyu Corp.
|
|
2,000
|
|
7,748
|
West Japan Railway Co.
|
|
2
|
|
8,724
|
Yamato Holdings Co. Ltd.
|
|
1,000
|
|
10,879
|
|
|
|
|
129,832
|
Machinery 3.8%
|
|
|
|
|
Daikin Industries Ltd.
|
|
300
|
|
6,634
|
Hitachi Construction Machinery Co. Ltd.
|
|
300
|
|
3,355
|
IHI Corp.
|
|
4,000
|
|
4,759
|
Japan Steel Works Ltd. (The)
|
|
1,000
|
|
6,914
|
JTEKT Corp.
|
|
700
|
|
5,238
|
Komatsu Ltd.
|
|
1,200
|
|
12,860
|
Kubota Corp.
|
|
1,000
|
|
4,891
|
Kurita Water Industries Ltd.
|
|
300
|
|
6,711
|
Makita Corp.
|
|
400
|
|
7,097
|
Mitsubishi Heavy Industries Ltd.
|
|
4,000
|
|
12,608
|
NSK Ltd.
|
|
1,000
|
|
3,986
|
Sankyo Co. Ltd.
|
|
100
|
|
4,392
|
Sega Sammy Holdings, Inc.
|
|
500
|
|
3,727
|
SMC Corp.
|
|
100
|
|
9,253
|
Sumitomo Heavy Industries Ltd.
|
|
2,000
|
|
5,775
|
THK Co. Ltd.
|
|
400
|
|
5,389
|
|
|
|
|
103,589
|
Marine Transportation 0.9%
|
|
|
|
|
Kawasaki Kisen Kaisha Ltd.
|
|
1,000
|
|
3,844
|
Mitsui OSK Lines Ltd.
|
|
2,000
|
|
10,066
|
Nippon Yusen KK
|
|
2,000
|
|
9,476
|
|
|
|
|
23,386
|
Metals Products 0.6%
|
|
|
|
|
JS Group Corp.
|
|
700
|
|
9,032
|
Rinnai Corp.
|
|
100
|
|
3,630
|
Toyo Seikan Kaisha Ltd.
|
|
300
|
|
3,621
|
|
|
|
|
16,283
|
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
56
|
|
ANNUAL REPORT
|
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2008
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6% continued
|
Mining 0.2%
|
|
|
|
|
Inpex Holdings, Inc.
|
|
1
|
|
$5,653
|
Nonferrous Metals 0.7%
|
|
|
|
|
Mitsubishi Materials Corp.
|
|
3,000
|
|
6,619
|
Sumitomo Electric Industries Ltd.
|
|
700
|
|
5,538
|
Sumitomo Metal Mining Co. Ltd.
|
|
1,000
|
|
7,331
|
|
|
|
|
19,488
|
Oil and Coal Products 1.2%
|
|
|
|
|
Idemitsu Kosan Co. Ltd.
|
|
100
|
|
5,684
|
Nippon Mining Holdings, Inc.
|
|
2,000
|
|
5,877
|
Nippon Oil Corp.
|
|
2,000
|
|
7,972
|
Showa Shell Sekiyu KK
|
|
600
|
|
4,758
|
TonenGeneral Sekiyu KK
|
|
1,000
|
|
8,358
|
|
|
|
|
32,649
|
Other Financing Business 1.3%
|
|
|
|
|
Acom Co. Ltd.
|
|
140
|
|
5,267
|
Credit Saison Co. Ltd.
|
|
500
|
|
5,160
|
Mitsubishi UFJ Lease & Finance Co. Ltd.
|
|
150
|
|
3,531
|
ORIX Corp.
|
|
130
|
|
13,033
|
Promise Co. Ltd.
|
|
250
|
|
4,405
|
SBI Holdings, Inc.
|
|
32
|
|
3,752
|
|
|
|
|
35,148
|
Other Products 2.7%
|
|
|
|
|
Asics Corp.
|
|
1,000
|
|
6,223
|
Dai Nippon Printing Co. Ltd.
|
|
1,000
|
|
11,601
|
Namco Bandai Holdings, Inc.
|
|
500
|
|
5,074
|
Nintendo Co. Ltd.
|
|
100
|
|
31,113
|
Nissha Printing Co. Ltd.
|
|
100
|
|
5,450
|
Toppan Printing Co. Ltd.
|
|
1,000
|
|
7,219
|
Yamaha Corp.
|
|
500
|
|
4,728
|
|
|
|
|
71,408
|
Pharmaceuticals 4.0%
|
|
|
|
|
Astellas Pharma, Inc.
|
|
500
|
|
19,776
|
Chugai Pharmaceutical Co. Ltd.
|
|
400
|
|
5,613
|
Daiichi Sankyo Co. Ltd.
|
|
800
|
|
16,268
|
Eisai Co. Ltd.
|
|
300
|
|
9,609
|
Hisamitsu Pharmaceutical Co., Inc.
|
|
100
|
|
4,149
|
Ono Pharmaceutical Co. Ltd.
|
|
200
|
|
8,805
|
Santen Pharmaceutical Co. Ltd.
|
|
200
|
|
5,043
|
Takeda Pharmaceutical Co. Ltd.
|
|
800
|
|
39,288
|
|
|
|
|
108,551
|
Precision Instruments 1.0%
|
|
|
|
|
Citizen Holdings Co. Ltd.
|
|
1,000
|
|
5,460
|
HOYA Corp.
|
|
600
|
|
10,695
|
Shimadzu Corp.
|
|
1,000
|
|
6,701
|
Terumo Corp.
|
|
100
|
|
4,087
|
|
|
|
|
26,943
|
Pulp and Paper 0.3%
|
|
|
|
|
Nippon Paper Group, Inc.
|
|
2
|
|
5,295
|
OJI Paper Co. Ltd.
|
|
1,000
|
|
3,793
|
|
|
|
|
9,088
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6% continued
|
Real Estate 2.9%
|
|
|
|
|
Aeon Mall Co. Ltd.
|
|
100
|
|
$2,420
|
Mitsubishi Estate Co. Ltd.
|
|
2,000
|
|
34,713
|
Mitsui Fudosan Co. Ltd.
|
|
1,000
|
|
16,970
|
Nomura Real Estate Holdings, Inc.
|
|
300
|
|
5,725
|
NTT Urban Development Corp.
|
|
3
|
|
3,005
|
Sumitomo Realty & Development Co. Ltd.
|
|
1,000
|
|
15,811
|
|
|
|
|
78,644
|
Retail Trade 4.2%
|
|
|
|
|
Aeon Co. Ltd.
|
|
1,100
|
|
10,346
|
FamilyMart Co. Ltd.
|
|
100
|
|
3,935
|
Fast Retailing Co. Ltd.
|
|
100
|
|
10,432
|
Fuji Co. Ltd./Ehime
|
|
200
|
|
3,386
|
Isetan Mitsukoshi Holdings Ltd.*
|
|
600
|
|
5,551
|
J. Front Retailing Co. Ltd.
|
|
1,000
|
|
4,372
|
Kisoji Co. Ltd.
|
|
200
|
|
3,927
|
Lawson, Inc.
|
|
100
|
|
4,850
|
Marui Group Co. Ltd.
|
|
1,000
|
|
5,948
|
Nitori Co. Ltd.
|
|
100
|
|
6,223
|
Ryohin Keikaku Co. Ltd.
|
|
100
|
|
4,708
|
Seven & I Holdings Co. Ltd.
|
|
800
|
|
22,084
|
Shimachu Co. Ltd.
|
|
300
|
|
6,711
|
Shimamura Co. Ltd.
|
|
100
|
|
6,873
|
Takashimaya Co. Ltd.
|
|
1,000
|
|
7,555
|
Yamada Denki Co. Ltd.
|
|
140
|
|
7,473
|
|
|
|
|
114,374
|
Rubber Products 0.7%
|
|
|
|
|
Bridgestone Corp.
|
|
800
|
|
13,747
|
Sumitomo Rubber Industries, Inc.
|
|
600
|
|
5,240
|
|
|
|
|
18,987
|
Securities and Commodities Futures 1.1%
|
|
|
|
|
Daiwa Securities Group, Inc.
|
|
2,000
|
|
10,961
|
Nomura Holdings, Inc.
|
|
2,100
|
|
19,260
|
|
|
|
|
30,221
|
Services 1.5%
|
|
|
|
|
Asatsu-DK, Inc.
|
|
200
|
|
4,423
|
Benesse Corp.
|
|
100
|
|
4,159
|
Dentsu, Inc.
|
|
4
|
|
6,430
|
Hakuhodo DY Holdings, Inc.
|
|
130
|
|
5,869
|
Oriental Land Co. Ltd.
|
|
100
|
|
7,066
|
Secom Co. Ltd.
|
|
200
|
|
7,483
|
USS Co. Ltd.
|
|
100
|
|
6,101
|
|
|
|
|
41,531
|
Textiles and Apparels 0.9%
|
|
|
|
|
Gunze Ltd.
|
|
1,000
|
|
3,264
|
Teijin Ltd.
|
|
2,000
|
|
5,084
|
Toray Industries, Inc.
|
|
2,000
|
|
9,171
|
Toyobo Co. Ltd.
|
|
4,000
|
|
5,572
|
|
|
|
|
23,091
|
See Notes to Financial Statements.
|
|
|
|
|
ANNUAL REPORT
|
|
57
|
|
NETS FUNDS
|
SCHEDULE OF INVESTMENTS
NETS TOPIX
®
INDEX FUND (JAPAN)
(continued)
|
OCTOBER 31, 2008
|
|
|
|
|
|
|
|
NUMBER
OF SHARES
|
|
VALUE
|
COMMON STOCKS 98.6% continued
|
Transportation Equipment 8.7%
|
|
|
|
|
Aisin Seiki Co. Ltd.
|
|
400
|
|
$6,845
|
Denso Corp.
|
|
600
|
|
11,372
|
Fuji Heavy Industries Ltd.
|
|
1,000
|
|
3,416
|
Honda Motor Co. Ltd.
|
|
1,800
|
|
43,925
|
Isuzu Motors Ltd.
|
|
3,000
|
|
5,125
|
Kawasaki Heavy Industries Ltd.
|
|
4,000
|
|
7,117
|
Mazda Motor Corp.
|
|
2,000
|
|
4,331
|
Mitsubishi Motors Corp.
*
|
|
6,000
|
|
8,175
|
Nissan Motor Co. Ltd.
|
|
2,600
|
|
13,033
|
Shimano, Inc.
|
|
100
|
|
2,837
|
Suzuki Motor Corp.
|
|
600
|
|
8,565
|
Toyota Industries Corp.
|
|
400
|
|
8,907
|
Toyota Motor Corp.
|
|
2,700
|
|
102,400
|
Yamaha Motor Co. Ltd.
|
|
700
|
|
7,587
|
|
|
|
|
233,635
|
Warehousing and Harbor Transportation Service 0.3%
|
Kamigumi Co. Ltd.
|
|
1,000
|
|
7,951
|
Wholesale Trade 4.2%
|
|
|
|
|
Alfresa Holdings Corp.
|
|
100
|
|
4,301
|
ITOCHU Corp.
|
|
2,000
|
|
10,290
|
Japan Pulp & Paper Co. Ltd.
|
|
1,000
|
|
3,325
|
Marubeni Corp.
|
|
3,000
|
|
11,347
|
Mediceo Paltac Holdings Co. Ltd.
|
|
500
|
|
5,358
|
MISUMI Group, Inc.
|
|
300
|
|
4,551
|
Mitsubishi Corp.
|
|
1,700
|
|
27,708
|
Mitsui & Co. Ltd.
|
|
2,000
|
|
18,831
|
Sojitz Corp.
|
|
2,500
|
|
4,067
|
Sumitomo Corp.
|
|
1,600
|
|
13,731
|
Suzuken Co. Ltd.
|
|
200
|
|
4,260
|
Toyota Tsusho Corp.
|
|
500
|
|
4,682
|
|
|
|
|
112,451
|
Total Common Stocks
|
|
|
|
|
(Cost $3,766,618)
|
|
|
|
2,659,070
|
|
|
|
|
|
SHORT-TERM INVESTMENT 0.0%
(1)
|
JPMorgan Prime Money Market Fund, Morgan Shares, 2.42%
(2)(3)
|
|
746
|
|
746
|
Total Short-Term Investment
|
|
|
|
|
(Cost $746)
|
|
|
|
746
|
|
|
|
|
|
Total Investments 98.6%
|
|
|
|
|
(Cost $3,767,364)
|
|
|
|
2,659,816
|
Other Assets less Liabilities 1.4%
|
|
|
|
37,895
|
NET ASSETS 100.0%
|
|
|
|
$2,697,711
|
* Non-Income Producing Security.
(1) Less than 0.05%.
(2) The rate quoted is the annualized seven-day net yield of the Fund at period end.
(3) J.P. Morgan Investor Services Co. is the administrator and JPMorgan Chase Bank, N.A. is the custodian and transfer agent for each Fund. Certain
officers of the Funds are also employees of the administrator, custodian or transfer agent. During the period ended October 31, 2008, the Fund had net purchases of approximately $746 of the JPMorgan Prime
Money Market Fund, Morgan Shares.
Percentages shown are based on Net Assets.
All securities are concentrated within Japan with the exception of the JPMorgan Prime Money Market Fund, Morgan Shares, which is concentrated in the United
States.
At October 31, 2008, the NETS TOPIX
®
Index Fund (Japan) had outstanding forward foreign currency contracts as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTRACTS
TO DELIVER
CURRENCY
|
|
AMOUNT
(LOCAL
CURRENCY)
|
|
IN
EXCHANGE
FOR
CURRENCY
|
|
AMOUNT
(LOCAL
CURRENCY)
|
|
SETTLEMENT
DATE
|
|
UNREALIZED
GAIN (LOSS)
|
|
Japanese Yen
|
|
10,847,650
|
|
U.S. Dollar
|
|
110,000
|
|
12/12/08
|
|
$
|
(472
|
)
|
|
|
|
INDUSTRY SECTOR
|
|
(UNAUDITED)
% OF TOTAL
INVESTMENTS
|
Air Transportation
|
|
0.6%
|
Banks
|
|
10.8
|
Chemicals
|
|
5.8
|
Communication
|
|
6.0
|
Construction
|
|
2.1
|
Electric Appliances
|
|
11.8
|
Electric Power and Gas
|
|
6.4
|
Fishery, Agriculture and Forestry
|
|
0.2
|
Foods
|
|
3.1
|
Glass and Ceramics Products
|
|
1.2
|
Insurance
|
|
2.5
|
Iron and Steel
|
|
2.8
|
Land Transportation
|
|
4.9
|
Machinery
|
|
3.9
|
Marine Transportation
|
|
0.9
|
Metals Products
|
|
0.6
|
Mining
|
|
0.2
|
Nonferrous Metals
|
|
0.7
|
Oil and Coal Products
|
|
1.2
|
Other Financing Business
|
|
1.3
|
Other Products
|
|
2.7
|
Pharmaceuticals
|
|
4.1
|
Precision Instruments
|
|
1.0
|
Pulp and Paper
|
|
0.3
|
Real Estate
|
|
3.0
|
Retail Trade
|
|
4.3
|
Rubber Products
|
|
0.7
|
Securities and Commodities Futures
|
|
1.1
|
Services
|
|
1.6
|
Textiles and Apparels
|
|
0.9
|
Transportation Equipment
|
|
8.8
|
Warehousing and Harbor Transportation Service
|
|
0.3
|
Wholesale Trade
|
|
4.2
|
Short-Term Investment
|
|
0.0
(4)
|
Total
|
|
100.0%
|
(4) Less than 0.05%.
See Notes to Financial Statements.
|
|
|
|
|
NETS FUNDS
|
|
58
|
|
ANNUAL REPORT
|
NETS FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2008
|
|
1. ORGANIZATION
NETS Trust (the Trust), a Maryland business trust, was formed on October 29, 2007. The Trust is an
open-end management investment company, registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Trust consists of twenty-five separate, non-diversified investment portfolios (collectively, the
Funds and individually, a Fund). These financial statements relate to the NETS AEX-index
®
Fund (The Netherlands) (commenced operations May 14, 2008),
NETS BEL 20
®
Index Fund (Belgium) (commenced operations May 14, 2008), NETS CAC40
®
Index Fund (France)
(commenced operations on April 11, 2008), NETS DAX
®
Index Fund (Germany) (commenced operations on April 9, 2008), NETS FTSE 100 Index Fund (United Kingdom) (commenced
operations on April 4, 2008), NETS FTSE/JSE Top 40 Index Fund (South Africa) (commenced operations May 7, 2008), NETS FTSE Singapore Straits Times Index Fund (commenced operations May 7, 2008), NETS Hang Seng China
Enterprises Index Fund (commenced operations May 14, 2008), NETS Hang Seng Index Fund (Hong Kong) (commenced operations on April 11, 2008), NETS ISEQ 20 Index Fund (Ireland) (commenced operations June 16, 2008),
NETS PSI 20
®
Index Fund (Portugal) (commenced operations May 21, 2008), NETS S&P/ASX 200 Index Fund (Australia) (commenced operations on April 4, 2008), NETS
S&P/MIB Index Fund (Italy) (commenced operations May 7, 2008), NETS TA-25 Index Fund (Israel) (commenced operations May 21, 2008), NETS Tokyo Stock Exchange REIT Index Fund (commenced operations September 3, 2008), and
NETS TOPIX
®
Index Fund (Japan) (commenced operations on April 10, 2008). The other nine Funds had not commenced operations as of October 31, 2008. The Funds are authorized
to issue an unlimited number of shares of beneficial interest at $0.0001 par value.
Each Fund is an index fund that seeks investment results that
correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in a specific market, as measured by that markets particular securities index (its Underlying Index). Each Underlying
Index is a group of securities that the sponsor of an index (an Index Provider) selects as representative of a specific market, market segment or industry sector. Each Index Provider determines the relative weightings of the securities
in the index and publishes information regarding the market value of the index.
Northern Trust Investments, N.A., (NTI or the Investment
Adviser) uses a passive or indexing approach to try to achieve each Funds investment objective. Each of the Funds included in this report invests substantially all of its assets within the equity markets of a single country outside of
the U.S. Foreign investments are subject to special risks including, but not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange
controls; imposition of restrictions on the expatriation of funds or other assets; less publicly available information about issuers; the imposition of taxes; higher transaction and custody costs; settlement delays
and risk of loss; difficulties in enforcing contracts; less liquidity and smaller market capitalizations; lesser regulation of securities markets; different accounting and disclosure standards; governmental interference; higher inflation; social,
economic and political uncertainties; the risk of expropriation of assets; and the risk of war and/or terrorism. The NETS Tokyo Stock Exchange REIT Index Fund concentrates its investments in the real estate industry, as represented by the
Tokyo Stock Exchange REIT Index.
Pursuant to the Trusts organizational documents, the Trusts officers and trustees are indemnified against
certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The
Funds maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not occurred yet. However, the Trust has not had prior claims or losses pursuant to these contracts,
and it expects the risk of loss to be remote.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in
conformity with U.S. generally accepted accounting principles or GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
A) VALUATION OF SECURITIES
The Net Asset Value
(NAV) of each Funds shares is determined daily as of the close of regular trading on the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. The NAV of each Fund is
calculated by dividing the value of net assets of such Fund (the value of its total assets less total liabilities) by the total number of outstanding shares of the Fund, generally rounded to the nearest cent.
The securities and other assets of each Fund are generally valued at their fair value by using market valuations. A market valuation generally means a valuation
(i) obtained from an exchange, a pricing service, or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service, or a major market maker (or dealer),
or (iii) based on amortized cost. A Fund may use
|
|
|
|
|
ANNUAL REPORT
|
|
59
|
|
NETS FUNDS
|
NETS FUNDS
NOTES TO FINANCIAL STATEMENTS
continued
|
|
various pricing services or discontinue the use of any pricing service. A price obtained from a pricing service
based on such pricing services valuation matrix may be considered a market valuation.
Portfolio securities listed or traded on domestic securities
exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or American Depositary Receipts (ADRs), are valued at the closing price on the exchange or system where the security is principally traded. With respect to
securities traded on the NASDAQ/NMS, such closing price shall be the NASDAQ Official Closing Price (NOCP). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should
be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system.
In the event that current market
valuations are not readily available or such valuations do not reflect current market value, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Funds Board of Trustees
(Board).
Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to
corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from
its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions;
and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Funds NAV is computed and that may materially affect the
value of the Funds investments), and a security whose price, as provided by the pricing service, does not reflect the securitys fair value. Examples of events that may be significant events are government actions,
natural disasters, armed conflict, acts of terrorism, and significant market fluctuations. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for
the security upon its current sale.
Valuing a Funds investments using fair value pricing will result in using prices for those investments that may
differ from current market valuations. Use of fair value prices and certain current market valuations could result in a difference between the prices used to calculate a Funds NAV and the prices used by the Funds Underlying Index, which,
in turn, could result in a difference between the Funds performance and the performance of the Funds Underlying Index.
B) FUTURES CONTRACTS
Each Fund may invest up to 10% of
portfolio assets in long or short futures contracts to help the Fund track the price and yield performance of its underlying index. The Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund
enters into a futures contract it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Subsequent payment are made or received by the Funds equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and offset in unrealized gains or losses. The Funds recognize a realized gain or loss when a contract is closed or expires. Futures are marked to market each day with the change in value reflected
in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. The Statements of Operations reflect gains or losses, if any, as realized for closed futures
contracts and as unrealized for open futures contracts. The Funds had no open futures contracts as of October 31, 2008.
The use of futures contracts
involves, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract
prices during a single day. Changes in the value of a futures contract may not directly correlate with changes in the value of the underlying securities. These risks may decrease the effectiveness of the Funds strategies and potentially result
in a loss.
C) FOREIGN CURRENCY TRANSLATIONS
Values of investments denominated in foreign currencies are converted into U.S. dollars using the prevailing market rates on the date of valuation as quoted by one or more major banks or dealers that make a two-way market in such currencies
(or a data service provider based on quotations received from such banks or dealers). Any use of a rate different from the rates used by an Index Provider may affect a Funds ability to track its Underlying Index. The cost of purchases and
proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The gains or losses, if any, on investments resulting
from changes in foreign exchange rates are included in the Statements of Operations with net realized and unrealized gains (losses) on investments. The realized and unrealized gains or losses, if any, on translations of other assets and liabilities
denominated in foreign currencies are included in foreign currency transactions on the Statements of Operations.
D) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Funds may enter into forward foreign currency exchange contracts to facilitate local settlements or to protect against
currency exposure in connection with its distributions to shareholders. All forward foreign currency exchange contracts are
|
|
|
|
|
NETS FUNDS
|
|
60
|
|
ANNUAL REPORT
|
NETS FUNDS
OCTOBER 31, 2008
marked-to-market daily at the applicable exchange rates and any resulting unrealized gains or losses
are recorded in the financial statements. The Funds record realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction or extinguished by delivery of the currency.
Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements
in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with
these instruments is meaningful only when all related and offsetting transactions are considered. The Statements of Operations reflect realized gains or losses, if any, in foreign currency transactions and unrealized gains or losses in forward
foreign currency exchange contracts.
E) INVESTMENT TRANSACTIONS AND INCOME
Investment transactions are recorded on trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Dividend income is recognized on the
ex-dividend date, net of any foreign taxes withheld at the source. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available.
F) EXPENSES
Each Fund is charged for those expenses that are directly attributable to that Fund.
Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
G) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to
shareholders of dividends from net investment income and net capital gain, if any, including any net foreign currency gains, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The timing and
character of distributions determined in accordance with federal income tax regulations may differ from financial statement amounts determined in accordance with GAAP due to differences in the treatment and recognition of investment income and
realized gains and losses. These differences are primarily related to foreign currency transactions, the deferral of certain realized losses and capital loss carryforwards. Inherent differences in the recognition of income and capital gains for
federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds capital accounts. These reclassifications have no impact on the total net assets or NAVs of these Funds. As of October 31, 2008, no
distributions have been declared. Distributions are paid in U.S. dollars and cannot be automatically invested in additional shares of the Funds.
H) FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes and has qualified
and
intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying and electing, each Fund will not be
subject to federal income taxes to the extent it distributes its taxable income, including any net realized capital gains, for each fiscal year. In addition, by distributing during each calendar year substantially all their net investment income and
capital gains, if any, the Funds will not be subject to federal excise tax. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These book-tax
differences are primarily due to differing treatments for income equalization, in-kind transactions, foreign currencies, losses deferred due to wash sales and the realization of unrealized gains on investments in passive foreign investment
companies. Additionally, based on the Funds understanding of the tax rules and rates related to income, gains and transactions for the foreign jurisdictions in which they invest, the Funds will provide for foreign taxes, and where appropriate,
deferred foreign taxes.
No provision for federal income taxes has been made since each Funds policy is to comply with the requirements of Subcharter
M of the Internal Revenue Code applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
At October 31, 2008, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:
|
|
|
|
|
|
OCTOBER 31, 2016
|
NETS AEX-index
®
(The Netherlands)
|
|
$
|
299,657
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
|
65,806
|
NETS CAC40
®
Index Fund (France)
|
|
|
4,840
|
NETS DAX
®
Index Fund (Germany)
|
|
|
36,936
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
|
16,457
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
|
115,691
|
NETS FTSE Singapore Straits Index Fund
|
|
|
205,012
|
NETS Hang Seng China Enterprises Index Fund
|
|
|
49,411
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
|
6,698
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
|
301,071
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
|
441,756
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
|
4,997
|
NETS S&P/MIB Index Fund (Italy)
|
|
|
266,236
|
NETS TA-25 Index Fund (Israel)
|
|
|
29,416
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
|
24,404
|
NETS TOPIX
®
Index (Japan)
|
|
|
66,534
|
The Funds in the above table may offset future capital gains with these capital loss carryforwards.
|
|
|
|
|
ANNUAL REPORT
|
|
61
|
|
NETS FUNDS
|
NETS FUNDS
NOTES TO FINANCIAL STATEMENTS
continued
|
|
At October 31,
2008, the tax components of undistributed net investment income, undistributed realized gains, and unrealized gains and losses were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
UNDISTRIBUTED
|
|
|
|
|
|
ORDINARY
INCOME*
|
|
LONG-TERM
CAPITAL GAINS
|
|
UNREALIZED
GAINS (LOSSES)
|
|
NETS AEX-index
®
(The Netherlands)
|
|
$
|
19,346
|
|
|
|
$
|
(1,076,087
|
)
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
|
12,752
|
|
|
|
|
(1,263,148
|
)
|
NETS CAC40
®
Index Fund (France)
|
|
|
62,152
|
|
|
|
|
(1,059,025
|
)
|
NETS DAX
®
Index Fund (Germany)
|
|
|
121,121
|
|
|
|
|
(1,070,118
|
)
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
|
49,302
|
|
|
|
|
(1,009,187
|
)
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
|
68,887
|
|
|
|
|
(1,206,733
|
)
|
NETS FTSE Singapore Straits Index Fund
|
|
|
36,203
|
|
|
|
|
(1,020,089
|
)
|
NETS Hang Seng China Enterprises Index Fund
|
|
|
27,509
|
|
|
|
|
(1,270,458
|
)
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
|
44,946
|
|
|
|
|
(1,081,288
|
)
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
|
18,769
|
|
|
|
|
(1,092,851
|
)
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
|
5,287
|
|
|
|
|
(892,974
|
)
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
|
42,465
|
|
|
|
|
(1,221,567
|
)
|
NETS S&P/MIB Index Fund (Italy)
|
|
|
84,476
|
|
|
|
|
(995,691
|
)
|
NETS TA-25 Index Fund (Israel)
|
|
|
24,055
|
|
|
|
|
(1,031,087
|
)
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
|
22,187
|
|
|
|
|
(494,531
|
)
|
NETS TOPIX
®
Index (Japan)
|
|
|
84,124
|
|
|
|
|
(1,105,306
|
)
|
*
|
Ordinary income includes taxable discount income and short-term capital gains, if any.
|
As of October 31, 2008, for federal income tax purposes, the gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation on investments (including the effects of foreign currency
translation) and the cost basis of securities were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNREALIZED
APPRECIATION
|
|
UNREALIZED
DEPRECIATION
|
|
NET
APPRECIATION
(DEPRECIATION)
|
|
|
COST
BASIS OF
SECURITIES
|
NETS AEX-index
®
Fund (The Netherlands)
|
|
$
|
|
|
$
|
1,074,827
|
|
$
|
(1,074,827
|
)
|
|
$
|
2,178,873
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
|
|
|
|
1,262,777
|
|
|
(1,262,777
|
)
|
|
|
2,442,616
|
NETS CAC40
®
Index Fund (France)
|
|
|
|
|
|
1,057,977
|
|
|
(1,057,977
|
)
|
|
|
2,550,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNREALIZED
APPRECIATION
|
|
UNREALIZED
DEPRECIATION
|
|
NET
APPRECIATION
(DEPRECIATION)
|
|
|
COST
BASIS OF
SECURITIES
|
NETS DAX
®
Index Fund (Germany)
|
|
$
|
88,793
|
|
$
|
1,157,128
|
|
$
|
(1,068,335
|
)
|
|
$
|
2,540,941
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
|
529
|
|
|
1,009,469
|
|
|
(1,008,940
|
)
|
|
|
2,529,452
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
|
|
|
|
1,206,740
|
|
|
(1,206,740
|
)
|
|
|
2,420,572
|
NETS FTSE Singapore Straits Times Index Fund
|
|
|
|
|
|
1,019,759
|
|
|
(1,019,759
|
)
|
|
|
2,282,907
|
NETS Hang Seng China Enterprises Index Fund
|
|
|
|
|
|
1,270,501
|
|
|
(1,270,501
|
)
|
|
|
2,479,351
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
|
|
|
|
1,081,308
|
|
|
(1,081,308
|
)
|
|
|
2,527,308
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
|
|
|
|
1,092,270
|
|
|
(1,092,270
|
)
|
|
|
2,171,843
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
|
|
|
|
889,358
|
|
|
(889,358
|
)
|
|
|
2,018,589
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
|
3,844
|
|
|
1,222,602
|
|
|
(1,218,758
|
)
|
|
|
2,519,353
|
NETS S&P/MIB Index Fund (Italy)
|
|
|
|
|
|
995,096
|
|
|
(995,096
|
)
|
|
|
2,268,983
|
NETS TA-25 Index Fund (Israel)
|
|
|
|
|
|
1,031,324
|
|
|
(1,031,324
|
)
|
|
|
2,474,354
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
|
16,644
|
|
|
511,792
|
|
|
(495,148
|
)
|
|
|
2,470,308
|
NETS TOPIX
®
Index Fund (Japan)
|
|
|
27,264
|
|
|
1,138,726
|
|
|
(1,111,462
|
)
|
|
|
3,771,278
|
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation
No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds tax returns to determine whether the tax positions are more-likely-than-not to be sustained by the applicable tax authority. Tax
positions not deemed to meet a more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years
as of the effective date. Management evaluated the implications of FIN 48 and determined that all tax positions met the more-likely-than-not threshold. As a result, the financial statements have not been impacted by the adoption of FIN
48. However, managements
|
|
|
|
|
NETS FUNDS
|
|
62
|
|
ANNUAL REPORT
|
NETS FUNDS
OCTOBER 31, 2008
conclusions regarding FIN 48 are subject to review and adjustment at a later date based on factors including,
but not limited to, further implementation guidance expected from FASB and on-going analysis of tax laws, regulation, and interpretations thereof.
The
Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as passive foreign investment companies. The Funds may elect to mark-to-market annually the shares of each passive foreign investment company
and would be required to distribute to shareholders any such marked-to-market gains.
I) FOREIGN
TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are
recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are disclosed in their Statement of Operations. Foreign
taxes payable as of October 31, 2008, if any, are reflected in the Funds Statements of Assets and Liabilities.
3. INVESTMENT ADVISORY
AND OTHER AGREEMENTS
NTI is a subsidiary of The Northern Trust Company (TNTC), which is a subsidiary of Northern Trust Corporation. NTI,
which is subject to the general supervision of the Funds Board, is responsible for making investment decisions for the Funds and for placing purchase and sale orders for portfolio securities. As compensation for its advisory services and
assumption of the Funds expenses, NTI is entitled to a unitary investment advisory fee, computed daily and payable monthly at annual rates set forth in the following table (expressed as a percentage of each Funds average daily net
assets). The annual advisory fees for the Funds during this period were as follows:
|
|
|
|
|
UNITARY MANAGEMENT
FEE (AS A PERCENTAGE
OF THE FUNDS AVERAGE
DAILY NET ASSETS)
|
NETS AEX-index
®
(The Netherlands)
|
|
0.47%
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
0.47%
|
NETS CAC40
®
Index Fund (France)
|
|
0.47%
|
NETS DAX
®
Index Fund (Germany)
|
|
0.47%
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
0.47%
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
0.65%
|
NETS FTSE Singapore Straits Index Fund
|
|
0.47%
|
NETS Hang Seng China Enterprises Index Fund
|
|
0.51%
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
0.47%
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
0.47%
|
|
|
|
|
|
UNITARY MANAGEMENT
FEE (AS A PERCENTAGE
OF THE FUNDS AVERAGE
DAILY NET ASSETS)
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
0.47%
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
0.47%
|
NETS S&P/MIB Index Fund (Italy)
|
|
0.47%
|
NETS TA-25 Index Fund (Israel)
|
|
0.70%
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
0.47%
|
NETS TOPIX
®
Index Fund (Japan)
|
|
0.47%
|
Under the terms of the Funds advisory agreement with NTI, the investment adviser pays all expenses of the
Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services (Covered Expenses). The following expenses are not Covered Expenses: interest expenses, brokerage commissions and other trading
expenses, fees and expenses of the independent trustees, taxes and other extraordinary costs such as litigation and other expenses not incurred in the ordinary course of business. For the periods ended October 31, 2008, the investment adviser
agreed to voluntarily reimburse the Funds for the trustees expenses shown on the accompanying Statements of Operations.
NETS FTSE/JSE Top 40
Index Fund (South Africa) received a $6,480 payment from NTI for a benchmark tracking error. The amount is reflected in the Net realized gains/(losses) on investments on the Statements of Operations.
Foreside Fund Services, LLC (the Distributor) serves as the Trusts distributor and distributes Creation Units (as defined in Note 4) for each Fund on an
agency basis. The Distributor does not maintain a secondary market in shares of any Fund. The Distributor does not receive a fee from the Funds for its distribution services.
J.P. Morgan Investor Services Co. (J.P. Morgan) is the administrator for each Fund. JPMorgan Chase Bank, N.A. is the custodian and transfer agent for each Fund. Certain employees of J.P. Morgan and
JPMorgan Chase Bank, N.A. are also officers of the Trust. J.P. Morgan and JPMorgan Chase Bank, N.A. are entitled to certain fees for their services to the Funds. These fees are Covered Expenses as defined above.
Foreside Management Services, LLC, (FMS) an affiliate of the Distributor, provides a Principal Financial Officer and Treasurer to the Trust. Neither the
Distributor or FMS have a role in determining the investment policies or which securities are to be purchased or sold by the Trust or its Funds. FMS is entitled to certain fees for its services to the Funds. These fees are Covered Expenses as
defined above.
Certain officers of the Trust are also officers of TNTC, NTI, J.P. Morgan and FMS. All officers serve without compensation from the Funds.
The Trusts assistant secretary also serves as legal counsel to the Trust.
|
|
|
|
|
ANNUAL REPORT
|
|
63
|
|
NETS FUNDS
|
NETS FUNDS
NOTES TO FINANCIAL STATEMENTS
continued
|
|
4. CAPITAL SHARE TRANSACTIONS
NETS Trust issues and redeems shares at NAV only in blocks of 100,000 shares, or multiples thereof, depending on
the Fund, and in blocks of 150,000 shares in the case of the NETS TOPIX
®
Index Fund (Japan) (Creation Units). The number of shares in a Creation Unit is specified in each
Funds prospectus. Creation Units of shares may be purchased or redeemed by or through a Depository Trust Company Participant that has entered into an Authorized Participant agreement with the Distributor (Authorized Participant).
Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for the purchase of Creation Units
of a Fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes a substantial replication or a portfolio sampling representation of the securities included in the relevant Underlying Index, and
an amount of cash. Investors purchasing and redeeming Creation Units pay a transaction fee directly to the Trust to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. The transaction fees,
associated with the issuance and redemption of Creation Units, paid for the periods ended October 31, 2008 were as follows:
|
|
|
|
|
|
TRANSACTION FEES
|
NETS AEX-index
®
(The Netherlands)
|
|
$
|
1,000
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
|
700
|
NETS CAC40
®
Index Fund (France)
|
|
|
2,900
|
NETS DAX
®
Index Fund (Germany)
|
|
|
3,000
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
|
3,500
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
|
1,200
|
NETS FTSE Singapore Straits Index Fund
|
|
|
2,000
|
NETS Hang Seng China Enterprises Index Fund
|
|
|
2,000
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
|
2,000
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
|
1,500
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
|
1,500
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
|
2,400
|
NETS S&P/MIB Index Fund (Italy)
|
|
|
1,400
|
NETS TA-25 Index Fund (Israel)
|
|
|
1,000
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
|
1,000
|
NETS TOPIX
®
Index Fund (Japan)
|
|
|
10,000
|
|
|
$
|
37,100
|
From time to time, settlement of securities related to in-kind contributions may be delayed. In such cases,
securities related to in-kind contributions are reflected as Due from custodian and securities related to in-kind redemptions are reflected as Securities related to in-kind transactions in the Statements of Assets and
Liabilities. Cash payables related to fund shares
redeemed are reflected as Payable for fund shares redeemed in the Statements of Assets and Liabilities.
5. INVESTMENT PORTFOLIO TRANSACTIONS
For the period ended
October 31, 2008, the Funds cost of purchasing and proceeds from sales of securities (excluding short-term investments and in-kind transactions) for the Funds were as follows:
|
|
|
|
|
|
|
|
|
PURCHASES
|
|
SALES
|
NETS AEX-index
®
(The Netherlands)
|
|
$
|
785,988
|
|
$
|
807,639
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
|
911,677
|
|
|
526,885
|
NETS CAC40
®
Index Fund (France)
|
|
|
372,451
|
|
|
64,016
|
NETS DAX
®
Index Fund (Germany)
|
|
|
1,001,944
|
|
|
823,158
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
|
174,081
|
|
|
110,146
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
|
1,598,790
|
|
|
1,010,150
|
NETS FTSE Singapore Straits Index Fund
|
|
|
719,618
|
|
|
673,485
|
NETS Hang Seng China Enterprises Index Fund
|
|
|
513,011
|
|
|
181,602
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
|
242,136
|
|
|
90,731
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
|
1,196,850
|
|
|
1,197,527
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
|
1,040,806
|
|
|
1,061,190
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
|
123,438
|
|
|
69,840
|
NETS S&P/MIB Index Fund (Italy)
|
|
|
816,652
|
|
|
735,691
|
NETS TA-25 Index Fund (Israel)
|
|
|
773,056
|
|
|
479,872
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
|
94,401
|
|
|
34,920
|
NETS TOPIX
®
Index Fund (Japan)
|
|
|
519,836
|
|
|
229,633
|
During the periods, certain Funds of the Trust delivered securities of the Funds in exchange for the redemption of
shares (redemption-in-kind). Cash and securities were transferred for redemptions at a fair value. For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each transaction.
For the periods ended October 31, 2008, the fair value of the cash and securities transferred for redemptions, and the net realized losses recorded in connection
with the transactions were as follows:
|
|
|
|
|
|
|
|
|
|
FAIR VALUE
|
|
NET REALIZED LOSSES
|
|
NETS DAX
®
Index Fund (Germany)
|
|
$
|
1,474,994
|
|
$
|
(979,702
|
)
|
NETS TOPIX
®
Index Fund (Japan)
|
|
|
7,971,390
|
|
|
(2,970,083
|
)
|
|
|
|
|
|
NETS FUNDS
|
|
64
|
|
ANNUAL REPORT
|
NETS FUNDS
OCTOBER 31, 2008
During the periods, the Funds received securities in exchange for subscriptions of shares (subscriptions-in-kind). For the
periods ended, the fair value, of the securities received for subscriptions were as follows:
|
|
|
|
|
|
FAIR VALUE
|
NETS AEX-index
®
(The Netherlands)
|
|
$
|
2,499,628
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
|
2,152,071
|
NETS CAC40
®
Index Fund (France)
|
|
|
2,262,887
|
NETS DAX
®
Index Fund (Germany)
|
|
|
4,918,802
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
|
2,481,913
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
|
1,953,885
|
NETS FTSE Singapore Straits Index Fund
|
|
|
2,440,929
|
NETS Hang Seng China Enterprises Index Fund
|
|
|
2,197,314
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
|
2,382,601
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
|
2,473,310
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
|
2,483,067
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
|
2,470,517
|
NETS S&P/MIB Index Fund (Italy)
|
|
|
2,454,002
|
NETS TA-25 Index Fund (Israel)
|
|
|
2,210,157
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
|
2,427,114
|
NETS TOPIX
®
Index Fund (Japan)
|
|
|
14,484,423
|
6. NEW ACCOUNTING PRONOUNCEMENTS
In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157 Fair Value Measurements (SFAS 157) and is effective for fiscal years beginning after November 15, 2007.
SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management does not believe that the adoption of SFAS 157 will have a material impact on the amounts reported
in the financial statements, however, additional disclosure will be required.
In March 2008, the FASB issued Statement of Financial Accounting Standards
No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced
disclosures about the Funds derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds financial statement disclosures.
In September 2008, FASB issued FSP (FASB Staff Position) No. FAS 133-1 and
FIN 45-4, Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FAS No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FAS No. 161 (FSP 133-1). FSP 133-1 requires
more detailed disclosures about the Funds use of credit derivatives when the Fund is a protection seller. The enhanced disclosures include for each credit derivative, its nature (including its terms and its current status with respect to
payment/performance risk), the maximum potential amount of undiscounted future payments the Fund could be required to make, its fair value and any associated collateral held by the Fund, or by third parties, FSP 133-1 is effective for fiscal
periods and interim periods ending after November 15, 2008. Management is currently evaluating the impact the adoption of FSP 133-1 will have on its financial statements and disclosures.
|
|
|
|
|
ANNUAL REPORT
|
|
65
|
|
NETS FUNDS
|
NETS TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of
NETS Trust:
We have audited the accompanying statements of assets and liabilities, including the
schedules of investments of NETS AEX-index
®
Fund (The Netherlands), NETS BEL 20
®
Index Fund (Belgium), NETS
CAC40
®
Index Fund (France), NETS DAX
®
Index Fund (Germany), NETS FTSE 100 Index Fund (United Kingdom), NETS
FTSE/JSE Top 40 Index Fund (South Africa), NETS FTSE Singapore Straits Times Index Fund, NETS Hang Seng China Enterprises Index Fund, NETS Hang Seng Index Fund (Hong Kong), NETS ISEQ 20 Index Fund (Ireland), NETS
PSI 20
®
Index Fund (Portugal), NETS S&P/ASX 200 Index Fund (Australia), NETS S&P/MIB Index Fund (Italy), NETS TA-25 Index Fund (Israel), NETS Tokyo Stock
Exchange REIT Index Fund, and NETS TOPIX
®
Index Fund (Japan) (collectively, the Funds), sixteen different portfolios of NETS Trust (the Trust), as of
October 31, 2008, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the period from each Funds commencement date of operations through October 31, 2008. These
financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of
October 31, 2008, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds
referred to above as of October 31, 2008, the results of their operations, the changes in their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
December 18, 2008
|
|
|
|
|
NETS FUNDS
|
|
66
|
|
ANNUAL REPORT
|
NETS TRUST
TAX INFORMATION
OCTOBER 31, 2008 (UNAUDITED)
|
|
FOREIGN TAX CREDIT
The Funds below intend to make an election that will allow shareholders to treat their proportionate share of foreign taxes paid by
the Funds as having been paid by them. The amount which represent taxes paid to foreign countries are as follows:
|
|
|
|
|
TAX
|
NETS AEX-index
®
(The Netherlands)
|
|
$4,518
|
NETS BEL 20
®
Index Fund (Belgium)
|
|
2,995
|
NETS CAC40
®
Index Fund (France)
|
|
12,184
|
NETS DAX
®
Index Fund (Germany)
|
|
22,937
|
NETS FTSE 100 Index Fund (United Kingdom)
|
|
4,956
|
NETS FTSE/JSE Top 40 Index Fund (South Africa)
|
|
716
|
NETS FTSE Singapore Straits Index Fund
|
|
95
|
NETS Hang Seng China Enterprises Index Fund
|
|
576
|
NETS Hang Seng Index Fund (Hong Kong)
|
|
744
|
NETS ISEQ 20 Index Fund (Ireland)
|
|
0
|
NETS PSI 20
®
Index Fund (Portugal)
|
|
1,816
|
NETS S&P/ASX 200 Index Fund (Australia)
|
|
1,325
|
NETS S&P/MIB Index Fund (Italy)
|
|
15,627
|
NETS TA-25 Index Fund (Israel)
|
|
5,408
|
NETS Tokyo Stock Exchange REIT Index Fund
|
|
1,699
|
NETS TOPIX
®
Index (Japan)
|
|
8,327
|
|
|
|
|
|
ANNUAL REPORT
|
|
67
|
|
NETS FUNDS
|
NETS TRUST
PREMIUM AND DISCOUNT TABLE
The tables that follow present information about the differences between the daily market price
on secondary markets for shares of a Fund and that Funds net asset value, or NAV. NAV is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the Funds procedure for calculating NAV. The
daily Market Price of each Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund are listed for trading, as of the time that the Funds
NAV is calculated. Each Funds Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with
changes in its NAV, as well as market supply and demand. Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the
amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund
is for the period from the commencement of trading on the relevant stock exchange of such Funds shares through the period end date of October 31, 2008.
Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of
trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS AEX-INDEX
®
INDEX FUND
(THE NETHERLANDS)
|
|
|
NETS BEL20
®
INDEX FUND
(BELGIUM)
|
|
|
NETS CAC40
®
INDEX FUND
(FRANCE)
|
|
|
|
COMMENCEMENT:
MAY 19, 2008
|
|
|
COMMENCEMENT:
MAY 19, 2008
|
|
|
COMMENCEMENT:
APRIL 16, 2008
|
|
BASIS POINT DIFFERENTIAL
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
³
100.0
|
|
28
|
|
23.9
|
%
|
|
20
|
|
17.1
|
%
|
|
14
|
|
10.0
|
%
|
75.0 99.9
|
|
12
|
|
10.3
|
%
|
|
6
|
|
5.2
|
%
|
|
9
|
|
6.4
|
%
|
50.0 74.9
|
|
4
|
|
3.4
|
%
|
|
6
|
|
5.2
|
%
|
|
9
|
|
6.4
|
%
|
25.0 49.9
|
|
13
|
|
11.1
|
%
|
|
15
|
|
12.8
|
%
|
|
13
|
|
9.3
|
%
|
0.0 24.9
|
|
24
|
|
20.5
|
%
|
|
24
|
|
20.5
|
%
|
|
22
|
|
15.7
|
%
|
-24.9 0.0
|
|
12
|
|
10.3
|
%
|
|
10
|
|
8.5
|
%
|
|
15
|
|
10.7
|
%
|
-49.9 -25.0
|
|
8
|
|
6.8
|
%
|
|
10
|
|
8.5
|
%
|
|
18
|
|
12.9
|
%
|
-74.9 -50.0
|
|
3
|
|
2.6
|
%
|
|
7
|
|
6.0
|
%
|
|
12
|
|
8.6
|
%
|
-99.9 -75.0
|
|
4
|
|
3.4
|
%
|
|
6
|
|
5.1
|
%
|
|
7
|
|
5.0
|
%
|
£
-100.0
|
|
9
|
|
7.7
|
%
|
|
13
|
|
11.1
|
%
|
|
21
|
|
15.0
|
%
|
|
|
117
|
|
100.0
|
%
|
|
117
|
|
100.0
|
%
|
|
140
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS DAX
®
INDEX FUND
(GERMANY)
|
|
|
NETS FTSE 100 INDEX FUND
(UNITED KINGDOM)
|
|
|
NETS FTSE/JSE TOP 40 INDEX FUND
(SOUTH AFRICA)
|
|
|
|
COMMENCEMENT:
APRIL 11, 2008
|
|
|
COMMENCEMENT:
APRIL 9, 2008
|
|
|
COMMENCEMENT:
MAY 12, 2008
|
|
BASIS POINT DIFFERENTIAL
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
³
100.0
|
|
18
|
|
12.6
|
%
|
|
7
|
|
4.8
|
%
|
|
41
|
|
33.6
|
%
|
75.0 99.9
|
|
11
|
|
7.6
|
%
|
|
6
|
|
4.1
|
%
|
|
3
|
|
2.5
|
%
|
50.0 74.9
|
|
17
|
|
11.9
|
%
|
|
6
|
|
4.1
|
%
|
|
10
|
|
8.2
|
%
|
25.0 49.9
|
|
20
|
|
14.0
|
%
|
|
11
|
|
7.6
|
%
|
|
9
|
|
7.4
|
%
|
0.0 24.9
|
|
23
|
|
16.1
|
%
|
|
17
|
|
11.7
|
%
|
|
5
|
|
4.1
|
%
|
-24.9 0.0
|
|
16
|
|
11.2
|
%
|
|
11
|
|
7.6
|
%
|
|
8
|
|
6.5
|
%
|
-49.9 -25.0
|
|
12
|
|
8.4
|
%
|
|
10
|
|
6.9
|
%
|
|
7
|
|
5.7
|
%
|
-74.9 -50.0
|
|
12
|
|
8.4
|
%
|
|
18
|
|
12.5
|
%
|
|
4
|
|
3.3
|
%
|
-99.9 -75.0
|
|
4
|
|
2.8
|
%
|
|
13
|
|
9.0
|
%
|
|
4
|
|
3.3
|
%
|
£
-100.0
|
|
10
|
|
7.0
|
%
|
|
46
|
|
31.7
|
%
|
|
31
|
|
25.4
|
%
|
|
|
143
|
|
100.0
|
%
|
|
145
|
|
100.0
|
%
|
|
122
|
|
100.0
|
%
|
|
|
|
|
|
NETS FUNDS
|
|
68
|
|
ANNUAL REPORT
|
NETS TRUST
OCTOBER 31, 2008 (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS FTSE SINGAPORE STRAITS
TIMES INDEX FUND
|
|
|
NETS HANG SENG CHINA
ENTERPRISES INDEX FUND
|
|
|
NETS HANG SENG INDEX FUND
(HONG KONG)
|
|
|
|
COMMENCEMENT:
MAY 12, 2008
|
|
|
COMMENCEMENT:
MAY 19, 2008
|
|
|
COMMENCEMENT:
APRIL 16, 2008
|
|
BASIS POINT DIFFERENTIAL
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
³
100.0
|
|
19
|
|
15.6
|
%
|
|
43
|
|
36.8
|
%
|
|
39
|
|
27.9
|
%
|
75.0 99.9
|
|
9
|
|
7.4
|
%
|
|
5
|
|
4.3
|
%
|
|
8
|
|
5.7
|
%
|
50.0 74.9
|
|
11
|
|
9.0
|
%
|
|
2
|
|
1.7
|
%
|
|
7
|
|
5.0
|
%
|
25.0 49.9
|
|
11
|
|
9.0
|
%
|
|
4
|
|
3.4
|
%
|
|
8
|
|
5.7
|
%
|
0.0 24.9
|
|
25
|
|
20.5
|
%
|
|
4
|
|
3.4
|
%
|
|
9
|
|
6.4
|
%
|
-24.9 0.0
|
|
11
|
|
9.0
|
%
|
|
4
|
|
3.4
|
%
|
|
11
|
|
7.9
|
%
|
-49.9 -25.0
|
|
14
|
|
11.5
|
%
|
|
3
|
|
2.5
|
%
|
|
6
|
|
4.3
|
%
|
-74.9 -50.0
|
|
6
|
|
4.9
|
%
|
|
7
|
|
6.0
|
%
|
|
10
|
|
7.1
|
%
|
-99.9 -75.0
|
|
4
|
|
3.3
|
%
|
|
5
|
|
4.3
|
%
|
|
7
|
|
5.0
|
%
|
£
-100.0
|
|
12
|
|
9.8
|
%
|
|
40
|
|
34.2
|
%
|
|
35
|
|
25.0
|
%
|
|
|
122
|
|
100.0
|
%
|
|
117
|
|
100.0
|
%
|
|
140
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS ISEQ 20 INDEX FUND
(IRELAND)
|
|
|
NETS PSI 20
®
INDEX FUND
(PORTUGAL)
|
|
|
NETS S&P/ASX 200 INDEX FUND
(AUSTRALIA)
|
|
|
|
COMMENCEMENT:
JUNE 19, 2008
|
|
|
COMMENCEMENT:
MAY 27, 2008
|
|
|
COMMENCEMENT:
APRIL 9, 2008
|
|
BASIS POINT DIFFERENTIAL
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
³
100.0
|
|
26
|
|
27.4
|
%
|
|
17
|
|
15.2
|
%
|
|
16
|
|
11.0
|
%
|
75.0 99.9
|
|
6
|
|
6.3
|
%
|
|
4
|
|
3.6
|
%
|
|
6
|
|
4.1
|
%
|
50.0 74.9
|
|
4
|
|
4.2
|
%
|
|
8
|
|
7.2
|
%
|
|
7
|
|
4.9
|
%
|
25.0 49.9
|
|
5
|
|
5.2
|
%
|
|
13
|
|
11.6
|
%
|
|
11
|
|
7.6
|
%
|
0.0 24.9
|
|
10
|
|
10.5
|
%
|
|
12
|
|
10.7
|
%
|
|
10
|
|
6.9
|
%
|
-24.9 0.0
|
|
5
|
|
5.3
|
%
|
|
11
|
|
9.8
|
%
|
|
16
|
|
11.0
|
%
|
-49.9 -25.0
|
|
3
|
|
3.2
|
%
|
|
9
|
|
8.0
|
%
|
|
10
|
|
6.9
|
%
|
-74.9 -50.0
|
|
6
|
|
6.3
|
%
|
|
10
|
|
8.9
|
%
|
|
9
|
|
6.2
|
%
|
-99.9 -75.0
|
|
6
|
|
6.3
|
%
|
|
8
|
|
7.1
|
%
|
|
8
|
|
5.5
|
%
|
£
-100.0
|
|
24
|
|
25.3
|
%
|
|
20
|
|
17.9
|
%
|
|
52
|
|
35.9
|
%
|
|
|
95
|
|
100.0
|
%
|
|
112
|
|
100.0
|
%
|
|
145
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETS S&P/MIB INDEX FUND
(ITALY)
|
|
|
NETS TA-25 INDEX FUND
(ISRAEL)
|
|
|
NETS TOKYO STOCK EXCHANGE
REIT INDEX FUND
|
|
|
|
COMMENCEMENT:
MAY 12, 2008
|
|
|
COMMENCEMENT:
MAY 27, 2008
|
|
|
COMMENCEMENT:
SEPTEMBER 8, 2008
|
|
BASIS POINT DIFFERENTIAL
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
³
100.0
|
|
23
|
|
18.9
|
%
|
|
38
|
|
33.9
|
%
|
|
9
|
|
22.5
|
%
|
75.0 99.9
|
|
7
|
|
5.7
|
%
|
|
7
|
|
6.3
|
%
|
|
4
|
|
10.0
|
%
|
50.0 74.9
|
|
15
|
|
12.3
|
%
|
|
9
|
|
8.0
|
%
|
|
2
|
|
5.0
|
%
|
25.0 49.9
|
|
17
|
|
13.9
|
%
|
|
9
|
|
8.0
|
%
|
|
5
|
|
12.5
|
%
|
0.0 24.9
|
|
23
|
|
18.9
|
%
|
|
6
|
|
5.4
|
%
|
|
2
|
|
5.0
|
%
|
-24.9 0.0
|
|
6
|
|
4.9
|
%
|
|
3
|
|
2.7
|
%
|
|
0
|
|
0.0
|
%
|
-49.9 -25.0
|
|
15
|
|
12.3
|
%
|
|
4
|
|
3.6
|
%
|
|
2
|
|
5.0
|
%
|
-74.9 -50.0
|
|
6
|
|
4.9
|
%
|
|
6
|
|
5.4
|
%
|
|
1
|
|
2.5
|
%
|
-99.9 -75.0
|
|
3
|
|
2.5
|
%
|
|
7
|
|
6.2
|
%
|
|
1
|
|
2.5
|
%
|
£
-100.0
|
|
7
|
|
5.7
|
%
|
|
23
|
|
20.5
|
%
|
|
14
|
|
35.0
|
%
|
|
|
122
|
|
100.0
|
%
|
|
112
|
|
100.0
|
%
|
|
40
|
|
100.0
|
%
|
|
|
|
|
|
ANNUAL REPORT
|
|
69
|
|
NETS FUNDS
|
NETS TRUST
PREMIUM AND DISCOUNT TABLE
continued
|
OCTOBER 31, 2008 (UNAUDITED)
|
|
|
|
|
|
|
|
|
NETS TOPIX
®
INDEX FUND
(JAPAN)
|
|
|
|
COMMENCEMENT:
APRIL 16, 2008
|
|
BASIS POINT DIFFERENTIAL
|
|
NUMBER
OF DAYS
|
|
PERCENTAGE OF
TOTAL DAYS
|
|
³
100.0
|
|
26
|
|
18.6
|
%
|
75.0 99.9
|
|
6
|
|
4.3
|
%
|
50.0 74.9
|
|
5
|
|
3.6
|
%
|
25.0 49.9
|
|
14
|
|
10.0
|
%
|
0.0 24.9
|
|
10
|
|
7.1
|
%
|
-24.9 0.0
|
|
10
|
|
7.1
|
%
|
-49.9 -25.0
|
|
12
|
|
8.6
|
%
|
-74.9 -50.0
|
|
14
|
|
10.0
|
%
|
-99.9 -75.0
|
|
5
|
|
3.6
|
%
|
£
-100.0
|
|
38
|
|
27.1
|
%
|
|
|
140
|
|
100.0
|
%
|
|
|
|
|
|
NETS FUNDS
|
|
70
|
|
ANNUAL REPORT
|
NETS TRUST
FUND EXPENSES
|
OCTOBER 31, 2008 (UNAUDITED)
|
FUND EXPENSES
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares, and (2) ongoing costs, including advisory fees and
other Fund expenses. The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the six month (or less if the Fund has been in operations for less than six months) period
and held through the period ended October 31, 2008.
ACTUAL EXPENSES
The first line under each Fund in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the
expenses that you paid over the period. Simply divide your account value for your Fund by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the
heading entitled Expenses Paid During the Period to estimate the expenses you paid on your account during this period.
HYPOTHETICAL
EXAMPLE FOR COMPARISON PURPOSES
The second line under each Fund in the table provides information about hypothetical account values and hypothetical
expenses based on the Funds actual expense ratio and an assumed rate of return of 5 percent per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the
5 percent hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant
to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commission on purchases and sales of fund shares. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help
you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Please also note that for Funds that have been in operation for less than six months, the Hypothetical Expenses Paid During the
Period reflect projected activity for the full
six-month period as opposed to the shorter inception period. This projection assumes that the annualized expense ratio during the period was in effect from May 1, 2008, through October 31, 2008.
NETS CAC40
®
INDEX FUND (FRANCE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE
5/1/2008
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
(1)
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
582.20
|
|
$
|
1.87
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS DAX
®
INDEX FUND (GERMANY)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE
5/1/2008
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
(1)
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
583.70
|
|
$
|
1.87
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS FTSE 100 INDEX FUND (UNITED KINGDOM)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE
5/1/2008
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
(1)
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
598.60
|
|
$
|
1.89
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS HANG SENG INDEX FUND (HONG KONG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE
5/1/2008
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
(1)
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
557.40
|
|
$
|
1.84
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS S&P/ASX 200 INDEX FUND (AUSTRALIA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE
5/1/2008
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
(1)
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
516.50
|
|
$
|
1.79
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
|
|
|
|
|
ANNUAL REPORT
|
|
71
|
|
NETS FUNDS
|
NETS TRUST
FUND EXPENSES
continued
NETS TOPIX
®
INDEX FUND (JAPAN)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE
5/1/2008
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
(1)
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
683.10
|
|
$
|
1.99
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS AEX-INDEX
®
FUND (THE
NETHERLANDS)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
457.60
|
|
$
|
1.60
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS BEL 20
®
INDEX FUND
(BELGIUM)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
473.60
|
|
$
|
1.62
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS FTSE SINGAPORE STRAITS TIMES INDEX FUND
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
524.40
|
|
$
|
1.74
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS FTSE/JSE TOP 40 INDEX FUND (SOUTH
AFRICA)
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
498.80
|
|
$
|
2.37
|
|
0.65
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,021.87
|
|
$
|
3.30
|
|
0.65
|
%
|
NETS HANG SENG CHINA ENTERPRISES INDEX
FUND
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
483.20
|
|
$
|
1.77
|
|
0.51
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.57
|
|
$
|
2.59
|
|
0.51
|
%
|
NETS ISEQ 20 INDEX FUND (IRELAND)
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
451.20
|
|
$
|
1.29
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS PSI 20
®
INDEX FUND
(PORTUGAL)
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
468.40
|
|
$
|
1.55
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS S&P/MIB INDEX FUND (ITALY)
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
529.20
|
|
$
|
1.75
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
NETS TA-25 INDEX FUND
(ISRAEL)
(
5
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
585.20
|
|
$
|
2.49
|
|
0.70
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,021.62
|
|
$
|
3.56
|
|
0.70
|
%
|
NETS TOKYO STOCK EXCHANGE REIT INDEX FUND
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEGINNING
ACCOUNT
VALUE AT
INCEPTION
|
|
ENDING
ACCOUNT
VALUE
10/31/2008
|
|
EXPENSES
PAID
DURING
THE
PERIOD
|
|
ANNUALIZED
EXPENSE
RATIO
DURING
PERIOD
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
801.20
|
|
$
|
0.68
|
|
0.47
|
%
|
Hypothetical (5% return before expenses)
|
|
$
|
1,000.00
|
|
$
|
1,022.77
|
|
$
|
2.39
|
|
0.47
|
%
|
(1)
|
Expenses Paid During the Period are equal to each Funds annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by
366 (to reflect the one-half year period).
|
(2)
|
The Fund commenced operations on May 14, 2008. Actual Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied
by the average account value over the period, multiplied by 171 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Funds
|
|
|
|
|
|
NETS FUNDS
|
|
72
|
|
ANNUAL REPORT
|
NETS TRUST
OCTOBER 31, 2008 (UNAUDITED)
|
annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184
divided by 366 (to reflect the one-half year period).
|
(3)
|
The Fund commenced operations on May 7, 2008. Actual Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the average
account value over the period, multiplied by 178 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the average account
value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).
|
(4)
|
The Fund commenced operations on June 16, 2008. Actual Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the average
account value over the period, multiplied by 138 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the average account
value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).
|
(5)
|
The Fund commenced operations on May 21, 2008. Actual Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the average
account value over the period, multiplied by 164 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the average account
value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).
|
(6)
|
The Fund commenced operations on September 3, 2008. Actual Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the
average account value over the period, multiplied by 59 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Funds annualized net expense ratio, multiplied by the average
account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period).
|
|
|
|
|
|
ANNUAL REPORT
|
|
73
|
|
NETS FUNDS
|
NETS TRUST
TRUSTEES AND OFFICERS
The business and affairs of the Trust are managed under the direction of the Trustees. Set forth below is information about
the Trustees and Officers of the Funds. A brief statement of their present positions and principal occupations during the past five years is also provided. As of the date of this Annual Report, each Trustee oversees the 25 portfolio of the NETS
Trust. The SAI includes additional information about the Trustees and is available, without charge, upon request by calling 1-800-595-9111 (toll-free).
|
|
|
|
|
NON-INTERESTED TRUSTEES
|
|
|
NAME, ADDRESS
(1)
, AGE,
POSITIONS HELD WITH TRUST
AND LENGTH OF SERVICE AS
TRUSTEE
(2)
|
|
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS
|
|
OTHER DIRECTORSHIPS
HELD BY TRUSTEE
(3)
|
|
|
|
Theodore A. Olson
Age: 69
Trustee since 2007
|
|
Director and Member of Finance Committee of
Clara Abbott Foundation since 2002; Retired since 1999;
Director of The Hundred Club of
Lake County (not for profit) since 1989.
|
|
Trustee and Chairman of NT Alpha Strategies Fund since
2004.
|
|
|
|
Ralph F. Vitale
Age: 59
Trustee since 2007
Chairman since Jan. 2008
|
|
Director of Boston Rheology, LLC since 2005;
Director of Boxford Housing Trust from 2004 to 2006;
Executive Vice President of Securities Finance for State Street Corporation from 1997 to 2003 (retired
since 2003).
|
|
Trustee of NT Alpha Strategies Fund since 2006.
|
|
|
|
John J. Masterson
Age: 48
Trustee since 2007
|
|
Partner and Managing Director for Global
Securities Department of Goldman Sachs & Co. from 2002 to 2007 (retired since 2007);
Member of Board of Directors of Boston Global Advisors (agency lending) from 2002 to 2006.
|
|
Trustee of NT Alpha Strategies Fund since 2007.
|
(1)
|
Each Non-Interested Trustee may be contacted by writing to the Trustee, c/o Paul Dykstra, Bell, Boyd & Lloyd LLP, 70 West Madison Street, Suite 3100, Chicago, IL
60602.
|
(2)
|
Each Trustee will hold office for an indefinite term until the earliest of: (i) the next meeting of shareholders, if any, called for the purpose of considering the election
or re-election of such Trustee and until the election and qualification of his or her successor, if any, elected at such meeting; (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board or shareholders, in accordance
with the Trusts Agreement and Declaration of Trust.
|
(3)
|
This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., public companies) or other investment
companies registered under the Investment Company Act of 1940.
|
|
|
|
|
|
INTERESTED TRUSTEE
|
NAME, ADDRESS
(1)
, AGE,
POSITIONS HELD WITH TRUST
AND LENGTH OF SERVICE AS
TRUSTEE
(2)
|
|
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS
|
|
OTHER DIRECTORSHIPS
HELD BY TRUSTEE
(3)
|
|
|
|
Michael A. Vardas, Jr.
(4)
Age: 46
Trustee since 2007
|
|
Managing Director, Northern Trust
Investments, N.A., since 2005;
Senior Vice President and Head of Global Securities Lending,
The Northern Trust Company, from 2002 to 2005.
|
|
None
|
(1)
|
Mr. Vardas may be contacted by writing to him at 50 S. LaSalle St., Chicago, Illinois 60603.
|
(2)
|
Each Trustee will hold office for an indefinite term until the earliest of: (i) the next meeting of shareholders, if any, called for the purpose of considering the election
or re-election of such Trustee and until the election and qualification of his or her successor, if any, elected at such meeting; (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board or shareholders, in accordance
with the Trusts Agreement and Declaration of Trust.
|
(3)
|
This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., public companies) or other investment
companies registered under the Investment Company Act of 1940.
|
(4)
|
An interested person, as defined by the 1940 Act. Mr. Vardas is deemed to be an interested Trustee because he is an officer of NTI and its parent
company.
|
|
|
|
|
|
NETS FUNDS
|
|
74
|
|
ANNUAL REPORT
|
NETS TRUST
OCTOBER 31, 2008 (UNAUDITED)
|
|
|
OFFICERS OF THE TRUST
|
NAME, ADDRESS, AGE,
POSITIONS HELD WITH TRUST
AND LENGTH OF SERVICE
(1)
|
|
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS
|
|
|
Michael A. Vardas, Jr.
Age: 46
50 South LaSalle Street Chicago, IL 60603
President since 2007
|
|
Managing Director, Northern Trust
Investments, N.A., from 2005 to present;
Senior Vice President and Head of Global
Securities Lending, The Northern Trust Company, from 2002 to 2005.
|
|
|
Peter K. Ewing
Age: 49
65 East 55th Street,
24th Floor
New York, NY 10022
Vice President since 2007
|
|
Senior Vice President, Northern Trust
Investments, N.A. and Senior Vice President, The Northern Trust Company, since November 2006;
Managing Director of Product Development and other positions, PlusFunds Group, Inc., from August 2003 to June 2006;
Director of Investment Products, Rydex Capital Partners, from February 2002 to August 2003.
|
|
|
Chad Rakvin
Age: 37
65 East 55th Street,
24th Floor
New York, NY 10022
Vice President since 2007
|
|
Senior Vice President, Northern Trust
Investments, N.A., since 2004;
Global Equity Index Director, The Northern Trust Company,
since 2004;
Principal, Head of Index Research, Barclays Global Investors, from 1999 to
2004.
|
|
|
Steven A. Schoenfeld
Age: 45
65 East 55th St., 24th Fl. New York, NY 10022
Vice President since 2007
|
|
Senior Vice President, Northern Trust
Investments, N.A. since 2004;
Chief Investment Officer, Northern Trust Global Investments,
since 2006;
Chief Investment Strategist, Northern Trust Global Investments, from 2004 to
2006;
Founder and Managing Partner, Global Index Strategies Inc., from 2003 to
2004;
Chief Investment Officer, Active Index Advisors, March 2003 to November 2003;
Managing Director, Barclays Global Investors, from 1996 to 2003.
|
|
|
Trudance L.C. Bakke
Age: 37
Three Canal Plaza, Suite 100 Portland, ME 04101 Treasurer since Feb. 2008
|
|
Director, Fund Financial Reporting at
Foreside Financial Group, LLC, since August 2006;
Product Manager/Senior Vice President,
Citigroup Global Transaction Services from 1996 to July 2006;
Officer to other unaffiliated
mutual funds for which the Distributor or its affiliates, act as distributor or provider of other services.
|
|
|
Craig R. Carberry, Esq.
Age: 48
50 South LaSalle Street Chicago, IL 60603
Secretary since 2007
|
|
Senior Attorney at The Northern Trust Company since
May 2000.
|
|
|
Joseph Costello
Age: 34
65 East 55th Street, 24th Fl. New York, NY 10022
Chief Compliance Officer since 2008
|
|
Vice President, The Northern Trust Company
and Compliance Specialist for Northern Trust Global Investments, since 2003;
Assistant Vice
President of Compliance, Arnhold and S. Bleichroeder Advisors, LLC, from 2000 to 2003.
|
|
|
Michael Grossman
Age: 37
50 South LaSalle Street Chicago, IL 60603
AML
Officer since 2007
|
|
Vice President and Compliance Manager in the
Anti-Money Laundering Unit, The Northern Trust Company, since 2007;
Vice President and
Anti-Money Laundering Advisory Officer, LaSalle Bank, N.A., from 2005 to 2006;
Assistant
Vice President and Compliance Officer, LaSalle Financial Services, Inc. from 2001 to 2006.
|
|
|
|
|
|
ANNUAL REPORT
|
|
75
|
|
NETS FUNDS
|
NETS TRUST
TRUSTEES AND OFFICERS
continued
|
OCTOBER 31, 2008 (UNAUDITED)
|
|
|
|
OFFICERS OF THE TRUST
continued
|
NAME, ADDRESS, AGE,
POSITIONS HELD WITH TRUST
AND LENGTH OF SERVICE
(1)
|
|
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS
|
|
|
Thomas A. Perugini
Age: 38
70 Fargo St., 3rd Floor Boston, MA 02210
Assistant Treasurer since Jan. 2008
|
|
Vice President of Fund Administration,
Treasury and Compliance for JPMorgan Worldwide Securities Services from 2006 to present;
1995 2006, Fund Administration at State Street Corp., most recently as a Vice President, Senior Director.
|
|
|
Diana E. McCarthy, Esq.
Age: 57
One Logan Square
18th
and Cherry Streets Philadelphia,
PA 19103-6996
Assistant
Secretary since 2007
|
|
Partner in the law firm of Drinker Biddle & Reath LLP since
2002.
|
(1)
|
Officers hold office at the pleasure of the Board until the next annual meeting of the Trust or until their successors are duly elected and qualified, or until they die, resign,
are removed or become disqualified.
|
|
|
|
|
|
NETS FUNDS
|
|
76
|
|
ANNUAL REPORT
|
NETS TRUST
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT
|
OCTOBER 31, 2008 (UNAUDITED)
|
The Board of Trustees (the Board) of the NETS Trust (the Trust) oversees the
management of the Trust and each separate series of the Trust and, as required by law, determines annually whether to approve and continue the Trusts investment advisory and ancillary services agreement (the Advisory Agreement)
with Northern Trust Investments, N.A. (NTI), a subsidiary of The Northern Trust Company (TNTC). Disclosure with respect to the Boards approval of the Advisory Agreement for the following Funds is provided in the
Funds Semi-Annual Report to Shareholders dated April 30, 2008:
NETS S&P/ASX 200 Index Fund (Australia)
NETS DAX
®
Index Fund (Germany)
NETS FTSE 100 Index Fund (United Kingdom)
NETS CAC40
®
Index Fund (France)
NETS Hang Seng Index Fund (Hong Kong)
NETS TOPIX
®
Index Fund (Japan)
NETS S&P/MIB Index Fund (Italy)
NETS FTSE Singapore Straits Times Index Fund
NETS FTSE/JSE Top 40 Index Fund (South Africa)
NETS BEL 20
®
Index
Fund (Belgium)
NETS Hang Seng China Enterprises Index Fund
NETS AEX-index
®
Fund (The
Netherlands)
NETS TA-25 Index Fund (Israel)
NETS PSI 20
®
Index Fund
(Portugal)
NETS ISEQ 20 Index Fund (Ireland)
NETS FTSE Bursa Malaysia 100 Index Fund
NETS RTS Index Fund (Russia)
NETS FTSE SET Large Cap Index Fund (Thailand)
The
following discussion relates to the Advisory Agreement for NETS Funds that the Board approved during the period covered by this report, but which, in certain cases, were not offered as of the date of this report.
In considering the Advisory Agreement the Board met with respect to the NETS TAIEX Index Fund (Taiwan) and
NETS Tokyo Stock Exchange REIT Index Fund on February 26, 2008. The registration statements for these Funds did not become effective until August 26, 2008. The Board met with respect to the NETS FTSE All-World Canada Index
Fund, NETS FTSE CNBC Global 300 Index Fund, NETS IPC
®
Index Fund (Mexico), NETS OMXS30 Index Fund (Sweden) and NETS SLI Index Fund (Switzerland) on May 22, 2008
(together with the February 26, 2008 meeting, the Meetings). The registration statements for these Funds became effective on October 14, 2008. At the Meetings, the Board concluded that the approval of the Advisory Agreement for
the NETS FTSE All-World Canada Index Fund, NETS FTSE CNBC Global 300 Index Fund, NETS IPC
®
Index Fund (Mexico), NETS OMXS30 Index Fund (Sweden), NETS SLI Index
Fund (Switzerland), NETS TAIEX Index Fund (Taiwan) and NETS Tokyo Stock Exchange
REIT Index Fund (each, a Fund and together the Funds) was in the best interest of the
Funds and their shareholders.
In preparation for the Trustees consideration of the Advisory Agreement at the Meetings, the Trustees received written
materials relating to the Advisory Agreement and had the opportunity to ask questions and request further information. At the Meetings, the Trustees considered NTIs oral presentations and discussed all of the information that had been
provided. Among other things, the Board considered comparisons with other mutual funds in relevant peer universes and peer groups. The mutual funds included in each peer universe or peer group were objectively determined solely by Lipper, Inc., an
independent provider of mutual fund data.
In approving the Advisory Agreement, the Board, including the Independent Trustees advised by independent legal
counsel, considered the factors they deemed relevant, including, but not limited to: (1) the nature, extent and quality of the services that NTI is expected to provide to the Funds; (2) the anticipated costs of services provided and the
projected profits to be realized by NTI and its affiliates from the relationship with the Funds; (3) the extent to which economies of scale would be realized if the Funds grew and whether the fee levels in the Advisory Agreement reflected these
economies of scale; (4) other benefits that NTI and its affiliates may realize as a result of their relationship with the Funds. As the Funds had no performance history at the time of the Meetings, the Trustees determined that the Funds
performance could not be a factor in approving the Advisory Agreement. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Boards decision to approve the Advisory Agreement.
The material factors and conclusions that formed the basis for the Trustees reaching their determinations to approve the Advisory Agreement are separately discussed
below.
The Nature, Extent and Quality of Services
The Board examined the nature, extent and quality of the services to be provided by NTI to each Fund. The Board reviewed information about NTIs key personnel and the portfolio managers who would provide investment advisory services to
the Funds. The Board also considered NTIs responsibilities under the Advisory Agreement to perform securities trading services and ancillary services including: (i) preparing and filing reports and proxy statements to the Trusts
shareholders, (ii) periodically updating the Trusts registration statement, (iii) monitoring anticipated purchases and redemptions of creation units by shareholders and new investors, (iv) providing information and assistance as
required by the Trusts administrator and fund accountant in connection with the Trusts shares, and (v) providing assistance in connection with the operations of the Trust generally.
|
|
|
|
|
ANNUAL REPORT
|
|
77
|
|
NETS FUNDS
|
NETS TRUST
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT
continued
|
OCTOBER 31, 2008 (UNAUDITED)
|
The Board also considered the quality of the
services to be provided and the quality of NTIs resources that would be made available to the Trust. The Board evaluated NTIs administrative, accounting, legal and compliance services, and information the Board has received regarding the
experience and professional qualifications of NTIs key personnel.
The Board concluded it was satisfied with the nature, extent and quality of the
investment management services to be provided by NTI, and that there was a reasonable basis on which to conclude that the Funds would benefit from the services to be provided by NTI under the proposed Advisory Agreement.
Performance
The Board considered that, because the Funds had
not started operations at the time of the Meetings, meaningful data relating to their performance was not available and could not be a factor in approving the Advisory Agreement.
Fees and Expenses
The Board considered the proposed unitary fee structure and the projected expenses. The
Board noted that, under the Advisory Agreement, NTI would be responsible for all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services (Covered Expenses). The
following expenses are not Covered Expenses: interest expenses, brokerage commissions and other trading expenses, fees and expenses of the independent trustees, taxes and other extraordinary costs such as litigation and other expenses not incurred
in the ordinary course of business. The Board considered comparative data for each Fund, including fees and expenses paid by comparable pure index funds in their peer group.
In reaching its determinations, the Board considered the following information with respect to the proposed investment advisory fees and other expenses of each Fund.
Developed Market Single Country
The Board considered that the
projected management fee and total expenses for the following Funds were lower than the peer group median: NETS OMXS30 Index Fund (Sweden), NETS SLI Index Fund (Switzerland) and NETS FTSE All-World Canada Index Fund. The projected
management fee and total expenses for the NETS TAIEX Index Fund were equal to the peer group median.
The Board concluded that the proposed
management fee was acceptable in light of the services to be provided.
Emerging Market Single Country
The Board considered that the projected management fee and total expenses for the NETS IPC
®
Index Fund (Mexico) were lower than the peer group median.
The Board concluded that the proposed management fees were acceptable in light of the services to be provided.
Regional
The Board considered that the projected management
fee and total expenses for the NETS FTSE CNBC Global 300 Index Fund were within the range of expense ratios of the peer group median. The Board considered that the projected management fee and total expenses for the NETS Tokyo Stock
Exchange REIT Index Fund were lower than the peer group median.
The Board concluded that the proposed management fees were acceptable in light of the
services to be provided.
Costs of Services and Profits of NTI
The Board examined the Advisers costs in serving as each Funds investment adviser. Among other things, the Board noted information provided by the Adviser with respect to the length of time it would take
its Funds-related advisory business to become profitable. The Board also considered the Advisers projections of assets in the Funds.
Economies of Scale
The Board considered whether NTI may realize economies of scale in managing and supporting the Funds. The Board
reviewed each Funds fee arrangements, and considered that, in light of the unitary fee structure, the fact that NTI will not initially make any profit from its services to the Funds, and the significant investment that NTI is making in the
Trust, breakpoints were not necessary at the present time.
Other Benefits to NTI
In addition to considering the profits that may be realized by NTI, the Board considered information regarding the direct and indirect benefits NTI and its affiliates may
receive as a result of its relationship with the Trust, which consisted primarily of the receipt of research as a result of soft dollars earned on the Funds commissions. The Board also considered that NTI must be able to pay and retain
experienced professional personnel at competitive rates to provide services to the Trust and that maintaining the financial viability of NTI is important in order for NTI to provide significant services to the Trust and its shareholders.
For the foregoing reasons, the Board, including a majority of the Independent Trustees, determined that the Advisory Agreement was fair and reasonable in light of the
services to be provided, fees to be charged and such other matters as the Trustees considered relevant in the exercise of their business judgment.
|
|
|
|
|
NETS FUNDS
|
|
78
|
|
ANNUAL REPORT
|
NETS TRUST
DISCLAIMERS
|
OCTOBER 31, 2008 (UNAUDITED)
|
The NETS Funds are not sponsored, endorsed, sold or promoted by any of the Index Providers. Neither the
Index Providers, any of their affiliates nor any other party involved in making or compiling the Underlying Indices makes any representation or warranty, express or implied, to the owners of the NETS Funds or any member of the public regarding
the advisability of investing in securities generally or in the NETS Funds particularly or the ability of the Underlying Indices to track general stock market performance. The Index Providers are the licensors of certain trademarks, service
marks and trade names of the Index Providers and of the Underlying Indices, which are determined, composed and calculated by the Index Providers without regard to The Northern Trust Company (TNTC), Northern Trust Investments, N.A.
(NTI) or the NETS Funds. The Index Providers have no obligation to take the needs of TNTC, NTI or the owners of the NETS Funds into consideration in determining, composing or calculating the Underlying Indices. The Index
Providers are not responsible for and have not participated in the determination of the prices and amount of shares of the NETS Funds or the timing of the issuance or sale of such shares or in the determination or the calculation of the
equation by which shares of the NETS Funds is to be converted into cash. Neither the Index Providers, any of their affiliates nor any other party involved in making or compiling the Underlying Indices has any obligation or liability to owners
of the NETS Funds in connection with the administration of the NETS Funds, or the marketing or trading of shares of the NETS Funds.
Neither the Index Providers, any of their affiliates nor any other party involved in making or compiling the Underlying Indices makes any warranty, express or implied, as to results to be obtained by NTI, the owners of the NETS Funds,
or any other person or entity from the use of the Underlying Indices or any data included therein in connection with the rights licensed hereunder or for any other use. Neither the Index Providers, any of their affiliates, nor any other party
involved in making or compiling the Underlying Indices shall have any liability for any errors, omissions or interruptions of or in connection with the Underlying Indices or any data included therein. Neither the Index Providers, any of their
affiliates nor any other party involved in making or compiling the Underlying Indices makes any express or implied warranties, and the Index Providers hereby expressly disclaim all warranties of merchantability or fitness for a particular purpose
with respect to the Underlying Indices or any data included therein. Without limiting any of the foregoing, in no event shall the Index Providers, any of their affiliates or any other party involved in making or compiling the Underlying Indices have
any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. For the avoidance of doubt, this disclaimer does not create any
contractual or quasi-contractual relationship between any owner of the NETS Funds or any other person dealing with the NETS Funds and the Index Provider, any of their affiliates or any other party involved
in making or compiling the Underlying Indices, and must not be construed to have created such relationship.
Each Index Provider is independent from one
another and does not assume or accept any liability of any other Index Providers.
For purposes of the disclaimers below, each of the NYSE Arca and the
NASDAQ is a Listing Exchange.
Shares of the Trust are not sponsored, endorsed or promoted by the Listing Exchanges. The Listing Exchanges make no
representation or warranty, express or implied, to the owners of the shares of any NETS Fund or any member of the public regarding the ability of any NETS Fund to track the total return performance of any Underlying Index or the ability
of any Underlying Index identified herein to track stock market performance. The Listing Exchanges are not responsible for, nor have they participated in, the determination of the compilation or the calculation of any Underlying Indices, nor in the
determination of the timing of, prices of, or quantities of the shares of any NETS Fund to be issued, nor in the determination or calculation of the equation by which the shares are redeemable. The Listing Exchanges have no obligation or
liability to owners of the shares of any NETS Fund in connection with the administration, marketing or trading of the shares of the Fund.
The
Listing Exchanges do not guarantee the accuracy and/or the completeness of any Underlying Index or any data included therein. The Listing Exchanges make no warranty, express or implied, as to results to be obtained by the Trust on behalf of its
NETS Funds as licensee, licensees customers and counterparties, owners of the shares of the Trust, or any other person or entity from the use of any Underlying Index or any data included therein. The Listing Exchanges make no express or
implied warranties, and hereby expressly disclaim all warranties of merchantability or fitness for a particular purpose with respect to any Underlying Index or any data included therein. Without limiting any of the foregoing, in no event shall the
Listing Exchanges have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
NTI does not guarantee the accuracy and/or the completeness of the Underlying Indices or any data included therein or the descriptions of the Index Providers, and NTI
shall have no liability for any errors, omissions, or interruptions therein.
NTI makes no warranty, express or implied, as to results to be obtained by
the NETS Funds, to the owners of the shares of
|
|
|
|
|
ANNUAL REPORT
|
|
79
|
|
NETS FUNDS
|
NETS TRUST
DISCLAIMERS
continued
|
OCTOBER 31, 2008 (UNAUDITED)
|
any NETS Fund, or to any other person or entity, from the use of any Underlying Index or any data included
therein. NTI makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any Underlying Index or any data included therein. Without limiting any of the
foregoing, in no event shall NTI have any liability for any special, punitive, direct, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.
NETS is a trademark of NTI.
|
|
|
|
|
NETS FUNDS
|
|
80
|
|
ANNUAL REPORT
|
NETS TRUST
THIS PAGE INTENTIONALLY LEFT BLANK
|
|
|
|
|
ANNUAL REPORT
|
|
81
|
|
NETS FUNDS
|
NETS TRUST
THIS PAGE INTENTIONALLY LEFT BLANK
|
|
|
|
|
NETS FUNDS
|
|
82
|
|
ANNUAL REPORT
|
NETS TRUST
THIS PAGE INTENTIONALLY LEFT BLANK
|
|
|
|
|
ANNUAL REPORT
|
|
83
|
|
NETS FUNDS
|
NETS TRUST
GENERAL INFORMATION
|
OCTOBER 31, 2008 (UNAUDITED)
|
FOR MORE INFORMATION
The NETS Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third
quarters of each fiscal year on Form N-Q. The Funds Forms N-Q are available on the SECs Web site at www.sec.gov. You may also review and obtain copies at the SECs Public Reference Room in Washington, D.C. Information
about the Public Reference Room may be obtained by calling 1-800-SEC-0330.
PROXY VOTING POLICIES AND PROCEDURE AND RECORD
A description of the Trusts proxy voting policies and procedures that are used by the Funds investment adviser to vote proxies relating to the Funds
portfolio securities are available without charge, upon request, by calling 1-800-595-9111 (toll free) and on the SECs website at www.sec.gov. Information regarding how the investment adviser voted any proxies for the period ended June 30
is available, without charge, upon request by calling the same number or visiting the SECs website listed above.
FORWARD LOOKING STATEMENTS
The reports concerning the Funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect
the performance of the Funds in the future. These statements are based on Fund managements predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and
of specific industry sectors, changes in levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be
reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
|
|
|
|
|
NETS FUNDS
|
|
84
|
|
ANNUAL REPORT
|
FOR MORE INFORMATION
To obtain other information and for shareholder inquiries:
BY
TELEPHONE
866-928-NETS
BY
MAIL
NETS Investor Services
801 South Canal Street, Department C-5S
Chicago, Illinois 60607
ON
THE
INTERNET
The Funds documents are available online and may be downloaded from:
The SECs Web site at www.sec.gov (text-only).
NETS Funds Web site at
www.netsetfs.com.
ETFAR (10/08)
(a)
|
The Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party (the Code of Ethics).
|
(c)
|
There have been no amendments to the Funds Code of Ethics during the reporting period for this Form N-CSR.
|
(d)
|
The Registrant has not granted any waivers, including an implicit waiver, from any provisions of its Code of Ethics during the period covered by this report.
|
(f)
|
A copy of the Funds Code of Ethics is attached as exhibit 12(a)(1) to this Form N-CSR.
|
Item 3.
|
Audit Committee Financial Expert.
|
The Registrants Board of
Trustees has determined that the Registrant has at least one audit committee financial expert (as defined in Item 3 of Form N-CSR), serving on its audit committee. Theodore A. Olson is the audit committee financial
expert and is independent (as each term is defined in Item 3 of Form N-CSR).
Under applicable securities laws and regulations, a
person who is determined to be an audit committee financial expert will not be deemed an expert for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being
designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liability that are greater than the
duties, obligations, and liability imposed on such person as a member of the Registrants Audit Committee and Board of Trustees in the absence of such designation or identification. The designation or identification of a person as an audit
committee financial expert does not affect the duties, obligations or liability of any other member of the Registrants Audit Committee or Board of Trustees.
Item 4.
|
Principal Accountant Fees and Services.
|
For the fiscal year ended October 31,
2008, Deloitte & Touche LLP (Deloitte), the Registrants independent registered public accounting firm, billed aggregate fees of $376,000 for professional services rendered for the audit of the Funds annual financial
statements and review of financial statements included in the Funds annual report to shareholders.
For the fiscal year ended
October 31, 2008, Deloitte did not bill any fees for assurances and related services that are reasonably related to the performance of the audit or review of the Funds financial statements and are not reported under the section Audit Fees
above.
For the fiscal year ended October 31, 2008,
Deloitte billed aggregate fees of $48,000 for professional services rendered for tax compliance, tax advice and tax planning. The nature of the services comprising the Tax Fees was the preparation of the Registrants federal and state income
tax returns, excise tax calculations and returns and a review of the Registrants calculations of capital gain and income distributions.
For the fiscal year ended October 31,
2008, Deloitte did not bill any fees for products and services other than those disclosed above.
(e)(1)
|
Pursuant to the Registrants Audit Committee Charter adopted on November 14, 2007, to the extent required by applicable regulations, all audit and non-audit services provided
by the independent accountants shall either be: (a) pre-approved by the Registrants Audit Committee as a whole; or (b) between meetings of the Audit Committee by the Chairman of the Audit Committee or the Registrants designated Audit
Committee Financial Expert (if any), provided that, in each case, such pre-approvals must be reported to the full Audit Committee at its next meeting.
|
(e)(2)
|
For the fiscal year ended October 31, 2008 the Registrants Audit Committee did not waive the pre approval requirement of any non-audit services to be provided by Deloitte
to the Registrant or to the Adviser or any entity controlling, controlled by or under common control with the Adviser that provided ongoing services to the Registrant.
|
(f)
|
No disclosures are required for this Item 4(f).
|
(g)
|
For the fiscal year ended October 31, 2008, the aggregate non-audit fees for services rendered by Deloitte to the Adviser and any entity controlling, controlled by, or under
common control with the Adviser that provided ongoing services to the Registrant were $2,155,600.
|
(h)
|
The Registrants audit committee has considered whether the provision of non-audit services that were rendered to the Adviser and any entity controlling, controlled by, or
under common control with the investment adviser that provides ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountants independence.
|
Item 5.
|
Audit Committee of Listed Registrants.
|
Not applicable to the
Registrant.
Item 6.
|
Schedule of Investments
|
(a) The complete schedule
of investments is included under Item 1 of this Form N-CSR filing.
(b) Not applicable.
Item 7.
|
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
|
Not applicable to the Registrant.
Item 8.
|
Portfolio Managers of Closed-End Management Investment Companies.
|
Not applicable to the Registrant.
Item 9.
|
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
|
Not applicable to the Registrant.
Item 10.
|
Submission of Matters to a Vote of Security Holders.
|
There have
been no material changes to the procedures by which shareholders may recommend nominees to the Registrants board of trustees.
Item 11.
|
Controls and Procedures.
|
|
(a)
|
The Registrants principal executive officer and principal financial officers have concluded that the Registrants disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-CSR based on their evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the 1934 Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
|
|
(b)
|
There were no changes in the Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during
the Registrants second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrants internal control over financial reporting.
|
|
(a)(1)
|
Code of Ethics pursuant to Item 2 of Form N-CSR is attached hereto.
|
|
(a)(2)
|
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 to be filed with Form N-CSR are attached hereto.
|
|
(b)
|
Certifications required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
NETS Trust
|
|
|
By:
|
|
/s/ Michael A. Vardas, Jr.
|
|
|
Michael A. Vardas, Jr., President
|
|
|
(Principal Executive Officer)
|
|
|
|
|
January 6, 2009
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this
report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
|
|
By:
|
|
/s/ Michael A. Vardas, Jr.
|
|
|
Michael A. Vardas, Jr., President
|
|
|
(Principal Executive Officer)
|
|
|
|
|
January 6, 2009
|
|
|
By:
|
|
/s/ Trudance L.C. Bakke
|
|
|
Trudance L.C. Bakke, Treasurer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
January 6, 2009
|
Nets Aex Index Fund (NYSE:AEX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Nets Aex Index Fund (NYSE:AEX)
Historical Stock Chart
From Sep 2023 to Sep 2024