FIN437BH Portfolio Report Fall 06.DOC
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    FIN437BH Portfolio Report Fall 06.DOC FIN437BH Portfolio Report Fall 06.DOC Document Transcript

    • Acknowledgements We would like to thank the following individual for sharing his knowledge and experiences with the class this semester: Richard Bergman Portfolio Managers {00174782.DOC}
    • Afandi, Mohamed Souheil Ahistrom, Christopher Bondy, Steven Casey, Ryan Chiang, Joseph Conger, Eric Dargenzio, Alfonso Der-Tavitian, Razmig Djonic, Milos Griffin, Ryan Matalon, Tino Riddle, Kelly Romo, Rogelio Tcherchian, Razmig Pena, William {00174782.DOC}2
    • Portfolio As of November 30, 2006 Shares Company Price Market Value 475 Altria Group (MO) 84.21 40,000 1,000 American International Group (AIG) 70.32 70,320 1,000 Amgen, Inc. (AMGN) 71.04 71,040 2,000 Applied Materials (AMAT) 18.01 36,020 1200 Archer Daniels Midland (ADM) 35.10 42,120 2,295 BLDERs Asia 50 ADR Index Fund 31.48 72,247 1,000 BP ADS 68.08 68,080 1900 Cisco Systems (CSCO) 26.91 51,129 475 Conoco Phillips (COP) 67.30 31,968 1,000 Costco (COST) 52.30 52,300 400 Fluor Corp. (FLR) 87.08 34,832 500 Goldman Sachs Grp (GS) 194.80 97,400 1,100 Infosys Technologies (INFY) 53.53 58,883 1,850 Intel Corp (INTC) 21.39 39,581 500 International Business Machines (IBM) 91.92 45,960 800 Johnson & Johnson (JNJ) 65.91 52,728 740 JP Morgan Chase & Co. (JPM) 46.28 34,247 96 Medco Health Solutions (MHS) 50.21 4,820 1,700 Microsoft Corporation (MSFT) 29.36 49,912 800 Nestle Group (NSRGY.PK) 88.26 70,614 2,000 The News Corporation (NWS) 21.53 43,060 1,000 Pepsico Inc. (PEP) 61.97 61,970 1,400 Pfizer (PFE) 27.49 38,486 1,200 Philips Electronics ADR (PHG) 37.32 44,784 375 Siemens Aktien (SI) 95.45 35,794 2,900 Starbucks Corp. (SBUX) 35.29 102,356 1,155 Streetracks Index SHS Fund 47.60 54,978 2,200 T Rowe Price Group (TROW) 43.33 95,326 500 Toyota Motor Corp. (TM) 120.05 60,025 1,800 Univision Comm. Inc (UVN) 35.59 64,062 1,400 Waste Management Inc. (WMI) 36.61 51,254 Cash 18,426.82 Total $1,694,721 {00174782.DOC}3
    • Portfolio As of September 30, 2006 Shares Company Price Market Value 1,000 American International Group (AIG) $66.26 $66,260 1,000 Amgen, Inc. (AMGN) 71.53 71,530 2,000 Applied Materials (AMAT) 17.73 35,460 2,295 BLDERs Asia 50 ADR Index Fund 29.34 67,335 1,000 BP ADS 65.58 65,580 1,000 Costco (COST) 49.68 49,680 600 EBAY Inc. (EBAY) 28.36 17,016 800 Fluor Corp. (FLR) 76.89 61,512 500 Goldman Sachs (GS) 169.17 84,585 2,200 Infosys Technologies (INFY) 47.73 105,006 500 International Business Machines (IBM) 81.94 40,970 800 Johnson & Johnson (JNJ) 64.94 51,952 740 JP Morgan Chase & Co. (JPM) 46.96 34,750 1,700 Microsoft Corporation (MSFT) 27.35 46,495 800 Nestle Group (NSRGY.PK) 86.92 69,540 2,000 The News Corporation (NWS) 20.64 41,280 1,000 Pepsico Inc. (PEP) 65.26 65,260 1,400 Pfizer (PFE) 28.36 47,280 1,200 Philips Electronics (PHG) 35.01 42,012 750 Siemens Aktien (SI) 87.10 65,325 2,900 Starbucks Corp. (SBUX) 34.05 98,745 500 Toyota Motor Corp. (TM) 108.90 54,450 2,200 T. Rowe Price & Associates, Inc. (TROW) 47.85 105,270 1,800 Univision Comm. Inc (UVN) 34.34 61,812 1,400 Waste Management Inc. (WMI) 36.68 51,352 Cash 27,000 Total $ 1,597,584 {00174782.DOC}4
    • Transactions Sales: Transactions occurred on November 24, 2006 sold 2,000 shares of SGR November 24, 2006 sold 1,100 shares of INFY November 24, 2006 sold 600 shares of EBAY November 24, 2006 sold 375 shares of SI November 24, 2006 sold 400 shares of FLR Purchases: November 24, 2006 bought 475 shares of COP November 24, 2006 bought 475 shares of MO November 24, 2006 bought 1,200 shares of ADM November 24, 2006 bought 1,900 shares of CSCO November 24, 2006 bought 1,850 shares of INTC {00174782.DOC}5
    • The Stocks Altria Group, Inc. consists of the following subsidiaries, operating units and brands: Kraft Foods, the largest food and beverage company headquartered in North America and second-largest in the world. Its brands include Planters, Maxwell House, Marlboro, Gevalia, Virginia Slims, Philadelphia, Miracle Whip, DiGiorno, and Nabisco; Philip Morris International is a leading global international tobacco company and produces seven of the top 20 best-selling global cigarette brands; Philip Morris USA is the largest tobacco company in U.S. and has half of the U.S. cigarette market’s retail share; Philip Morris Capital Corporation is an investment company whose portfolio consists of leveraged and direct finance lease investments and other tax-oriented and third party financing; and SABMiller, which holds a 28.7% economic and voting interest in the world's second-largest brewer, the Miller Brewing Co. American International Group sells insurance products in the U.S. and internationally. The company is divided into four business segments: General Insurance, which offers property and casualty insurance, excess liability, inland marine, environmental, workers compensation, excess and umbrella coverages, aviation, accident and health, equipment breakdown, directors and officers’ liability, difference-in-conditions, kidnap-ransom, export credit and political risk, and various types of professional errors and omissions coverage; Life Insurance & Retirement Services offers individual and group life, payout annuities, fixed and variable annuities, endowment and accident, and health policies; Financial Services, which provides financial products and services, including aircraft leasing, capital market transactions, and consumer and insurance premium financing. Real estate mortgages, consumer loans, retail sales finance, and credit-related insurance are its consumer finance products; and Asset Management, which provides investment services and products, including institutional and retail asset management, broker dealer services, and spread-based investment business. AIG has over 2,200 offices in the United States, 8 offices in Canada, and several offices abroad. American International Group was formed in 1967 and is based in New York City. Amgen, Inc. develops and manufactures human therapeutics based on biotechnology. Its drugs include Epogen/Aranesp for anemia associated with chronic renal failure and chemotherapy; Neupogen/Neulasta to stimulate the immune system in patients undergoing chemotherapy or bone-marrow transplants; and Enbrel for rheumatoid arthritis, psoriasis, and other autoimmune disorders. Amgen is also developing products to treat certain cancers and bone loss (such as osteoporosis). As a biotechnology company, Amgen, Inc. engages in the discovery, development, manufacture, and marketing of human therapeutics based on advances in cellular and molecular biology. It sells its products to healthcare providers, including clinics, hospitals, and pharmacies primarily in the United States, Europe, Canada, and Australia. Amgen also has a license agreement with Memory Pharmaceuticals Corp. {00174782.DOC}6
    • to produce drugs for neurological and psychiatric disorders. The company is headquartered in Thousand Oaks, California. Applied Materials, Inc. engages in the development, manufacture, and marketing of integrated circuit fabrication equipment for the semiconductor industry worldwide. It offers systems that perform the chip fabrication process, including atomic layer deposition chemical vapor deposition, physical vapor deposition, electrochemical plating, etch, ion implantation, rapid thermal processing, chemical mechanical polishing, wafer wet cleaning, wafer metrology and inspection, and flat panel display manufacturing, as well as systems that etch, measure, and inspect circuit patterns on masks used in the photolithography process. The company’s integrated chips are built on a silicon wafer base and include various circuit components, such as transistors and other devices that are connected by various layers of wiring. It supplies systems for manufacturing copper-based chips, and for depositing, etching, and planarizing the copper interconnect layers. The company’s products are marketed and sold worldwide through a direct sales force. It serves semiconductor wafer manufacturers and integrated circuit manufacturers in Taiwan, North America, Japan, Korea, Europe, and Asia Pacific. Applied Materials was founded in 1967 and is headquartered in Santa Clara, California. Archer-Daniels-Midland Company engages in the procurement, transportation, storing, processing, and merchandising of agricultural commodities and products. The company operates in three segments: Oilseeds Processing, Corn Processing, and Agricultural Services. The Oilseed Processing segment processes oilseeds, such as soybeans, cottonseed, sunflower seeds, canola, peanuts, and flaxseed into vegetable oils and meals for the food and feed industries. The segment also markets partially refined oil for use in chemicals, paints, and other industrial products. In addition, it produces oilseed meals used in the manufacture of commercial livestock and poultry feeds; cottonseed flour for the pharmaceutical industry; and cotton cellulose pulp for the chemical, paper, and filter markets. The Corn Processing segment engages in wet milling and dry milling corn operations, which produce syrup, starch, glucose, dextrose, and sweeteners. It also produces corn gluten feed and meal, as well as distiller grains for use as feed ingredients. The segment produces astaxanthin used in aquaculture, as well as citric and lactic acids, lactates, sorbitol, and xanthan gum, which are used in various food and industrial products. The Agricultural Services segment engages in buying, storing, cleaning, and transporting agricultural commodities, such as oilseeds, corn, wheat, milo, oats and barley, and reselling these commodities to the agricultural processing industry. In addition, the company engages in milling wheat, corn, and milo into flour, which are sold to commercial bakeries, food companies, food service companies, and retailers. It also produces bakery products and mixes for the baking industry. Archer-Daniels-Midland Company was founded in 1898 and is headquartered in Decatur, Illinois. BLDRS Asia 50 ADR Index Fund seeks to provide investment results that correspond generally to the price and yield performance of the Bank of New York Asia 50 ADR Index. The fund typically invests most of its assets in the securities that {00174782.DOC}7
    • make up the Index. Their main holdings include Canon Inc. ADR (4.82% of assets), Mitsubishi UFJ Fin (11.11% of assets) and Toyota MTR CP ADR (12.97% of assets). BP P.L.C. is a holding company that was founded in 1909 as Anglo-Persian Oil Co. BP has three operating segments: Exploration and Production; Refining and Marketing, and Gas, Power and Renewables. Exploration and Production's activities include oil and natural gas exploration and field development and production, together with pipeline transportation and natural gas processing. The activities of Refining and Marketing include oil supply and trading, as well as the refining, manufacturing and marketing of petrochemicals, including aromatics and acetyls (A&A). Gas, Power and Renewables is involved in the marketing and trading of natural gas, natural gas liquids (NGLs), liquefied natural gas (LNG), LNG shipping and regasification activities, and low-carbon power development, including solar and wholesale marketing and trading (BP Alternative Energy). BP produces more than four million barrels of oil equivalent per day of oil and gas for customers across the world. It is also one of the largest producers and suppliers of natural gas, with a daily output averaging 8.4 billion cubic feet from fields in Trinidad and North Africa, as well as the United States and the North Sea. BP operates globally, with business activities and customers in more than 100 countries in Europe, the United States, Canada, Russia, South America, Australasia, Asia and Africa. The Company has exploration and production interests in 26 countries. CISCO Systems, Inc. (CSCO) was founded in 1984 and is headquartered in San Jose, California. The company designs, sells, & Produces IP-Based Networking & Products related to information technology worldwide. CISCO is a major provider of products that transport data, voice, and video within and between networks throughout the world. The company produces the routers that connect computer networks, and offers Home Networking Products (voice & data modems, network cards, internet video cameras), optical networking products; network security products and services; storage area networking products, in-building and outdoor wireless networking products, such as access points, wireless LAN controllers, wireless management software, wireless LAN clients and client software, bridges, antennas, and accessories, and service provider IP communications and network management software products. The company currently holds an 80% market share of the routers industry, and a 71% share of the LAN switching industry. ConocoPhillips operates as an integrated energy company worldwide. The company has six divisions: Exploration and Production, Midstream, Refining and Marketing, LUKOIL Investment, Chemicals, and Emerging Businesses. The Exploration and Production segment primarily explores for, produces, and markets crude oil, natural gas, and natural gas liquids. It also mines deposits of oil sands in Canada that are used to produce synthetic crude oil. The Midstream segment gathers and processes natural gas; it also markets natural gas liquids primarily in the United States, Canada, and Trinidad. The Refining and Marketing segment purchases, refines, markets, and transports crude oil and petroleum products primarily in the United States, Europe, and Asia. The Chemicals segment manufactures and markets petrochemicals and plastics. The Emerging Businesses segment encompasses the development of new businesses, including new technologies related to natural gas conversion into clean fuels and related products, {00174782.DOC}8
    • technology solutions, power generation, and emerging technologies. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas. Costco Wholesale Corporation operates membership-only warehouses that sell branded and private-labeled products in a wide range of merchandise categories at low prices. During fiscal year 2005, Costco operated 433 warehouse clubs, of which 338 are located in the United States, 65 in Canada, 16 in the United Kingdom, five in Japan and Korea, and four in Taiwan. As the managing partner, Costco operates 27 warehouses in Mexico through a 50%-owned joint venture. The Company buys nearly all of its merchandise directly from manufacturers for shipment either directly to Costco’s selling warehouses or to a consolidation point, where various shipments are combined to minimize freight and handling costs. Fluor Corporation provides the services of engineering, procurement, construction, and maintenance in the following five segments in the United States: Oil & Gas – builds new facilities and restores old and damaged facilities; the division also expands refineries, pipelines, and offshore facility installations for the energy industry; Industrial & Infrastructure – provides its services to the following sectors: manufacturing, life sciences, commercial and institutional, chemicals, mining, microelectronics, telecommunications, and transportation. If clients desire new construction and improvements of old facilities, the company will lend its architectural, industrial design, engineering, construction, construction management, and commissioning expertise. Government – Fluor provides project management services to the department of energy for the U.S. government. Global Services – the company provides the services of outsourcing industrial fleet, plant turnaround, and temporary staffing. Power – Fluor designs and constructs new power facilities for companies in a variety of energy-related industries. Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services to a diversified client base. As of year end 2005, they operated offices in over 20 countries while approximately 38% of their 22,425 employees were based outside the United States. Goldman Sachs is the successor to a commercial paper business founded in 1869 by Marcus Goldman. In May 1999, they converted from a partnership to a corporation and completed an initial public offering of their common stock. Their activities are divided into three segments: Investment Banking, Trading and Principal Investments, and Asset Management and Securities Services. Infosys Technologies LTD. (India) is a global technology services company. The company provides end-to-end business solutions, which leverage technology for its clients, including consulting, design, development and software re-engineering. They provide business process management services, such as offsite customer relationship management, finance and accounting, and administration and sales order processing. The company also manufactures security and software products for the banking industry in North America, Europe and the Asia-Pacific region. {00174782.DOC}9
    • Intel Corp. engages in the manufacture of semiconductor chips, as well as in the development of advanced integrated digital technology platforms for the computing and communications industries. The company’s products include microprocessors; chipsets; motherboards; flash memory; wired and wireless connectivity products; communications infrastructure components, including network processors; and products for networked storage. Its products are incorporated primarily into desktop computers, the infrastructure for the Internet, enterprise computing servers, notebooks, wireless connectivity products, and handheld computing devices. Intel’s brand products include the Intel Core, Intel Pentium, Intel Celeron, and Intel Xeon; wireless products consist of Intel PRO/ Wireless 5116 Broadband Interface and Intel Pentium M processor 760. The company’s customers include original equipment and design manufacturers, PC and network communications products users, and industrial and communications equipment manufacturers. It offers its products through its sales force and distributors in the Asia-Pacific, Europe, the Americas, and Japan. The company was founded in 1968 and is based in Santa Clara, California. International Business Machines is a worldwide information technology company which operates in the following six segments: Global Services – IBM will lend its consulting services to its clients who are in need of application and systems integration, client relationship management, financial management, human capital, business strategy and change, supply chain management, and transformation of business processes. Systems and Technology Group – includes system and component design services, outsourcing of clients' design teams, technology/manufacturing consulting services, data storage products (disk, tape, and storage area networks), semiconductor technology and products, packaging solutions, and engineering technology. Personal Systems Group – provides desktop and notebook computers, production print solutions, on demand print-related solutions, enterprise workgroup print technologies, and print management software services. Software – develops middleware software (which allows its clients to integrate systems, processes, and applications across their enterprises) and operating systems software. It also offers software that handles collaboration and messaging to engage in asynchronous communication, and knowledge management. Global Financing – provides lease and loan (commercial) financing to end users, remarketing, and internal customer financing. Enterprise Investments – IBM develops and provides information technology solutions supporting the hardware, software, and global services segments of the company. Product life cycle management software and document processing technologies are its major product lines. Johnson & Johnson is engaged in the manufacture and sale of products in the health care field primarily in the United States. Johnson & Johnson has more than 230 operating companies, which manufacture and market thousands of products, all designed to help us lead healthy and happy lives. The company’s business operates through three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment manufactures and markets a range of products used in the baby and child care, skin care, oral and women’s health care fields, as well as over the counter pharmaceutical and nutritional products. The Pharmaceutical segment franchises various products in the anti-fungal, anti-infective, cardiovascular, {00174782.DOC}10
    • contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, psychotropic, and urology fields. The Medical Devices and Diagnostics segment makes various products used by physicians, nurses, therapists, hospitals, diagnostic laboratories, and clinics. JPMorgan Chase & Co. operates as a global financial services company in the United States. It operates in six segments: Investment Banking, Retail Financial Services, Card Services, Commercial Banking, Treasury and Securities Services, and Asset and Wealth Management. JP Morgan Chase is headquartered in New York City. With assets of $1.2 trillion, JP Morgan is one of the largest banking institutions in the US. Under the JP Morgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients. It operates approximately 2,508 branches in 17 U.S. states and 6,650 automated teller machines. In addition, the company has operations in approximately 50 countries in Europe, Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. For the last fiscal year, the company reported $80 billion in revenues and $8.4 billion in net income. Medco Health Solutions provides pharmacy benefit programs and services for clients, members of client-funded benefit programs, and individual patients in the United States. Its clients include employers, federal, state, and local government agencies, and managed care organizations. The company was founded in 1983 and is headquartered in Franklin Lakes, New Jersey. Microsoft Corporation develops, manufactures, licenses, and supports a range of software products for various computing devices. Its software products include operating systems for servers, personal computers, and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solutions applications; and software development tools. Microsoft also provides consulting and product support services; and trains and certifies system integrators and developers. Additional products include the Xbox video game console and games, as well as PC games and peripherals. The company’s online businesses include the MSN subscription and the MSN network of internet products and services. Microsoft also researches and develops advanced technologies and offers music download service in 19 market versions in 17 countries, including 13 western European countries. The company has strategic alliances with Dell, Inc., KT Corp., Langchao Group, and MTV Networks, Inc. Nestle S.A. is the world’s largest food company. The company’s principal business is the manufacture of baby food, dairy products, nutrition products (cereals, dietetic foods, yogurt, etc.), ice cream, chocolate and confectionery, prepared foods, beverages, food services, bottled water, pharmaceutical products, cosmetics and pet care products. In 2005, the Swiss-based company posted record sales and profits. The News Corp. is a diversified international media and entertainment company with operations that include filmed entertainment, television, cable network programming, {00174782.DOC}11
    • direct broadcast satellite television, magazines and inserts, newspapers, and book publishing. The company’s activities are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and the Pacific Basin. News Corporation is a holding company that conducts all of its activities through subsidiaries and affiliates. Some of its major subsidiaries include HarperCollins, Fox Entertainment Group, DIRECTV, Inc., the New York Post, and NDS Group. PepsiCo Inc. was founded in 1965 through the merger of the Pepsi-Cola and Frito- Lay companies. The company manufactures, markets, and sells a variety of salty, convenient, sweet and grain-based snacks, and carbonated and non-carbonated beverages. The company is organized in four divisions: Frito-Lay North America (32% of revenues in 2005), PepsiCo Beverages North America (28%), PepsiCo International (35%), and Quaker Foods North America (5%). PepsiCo distributes its products through direct store delivery, broker warehouse, and food service and vending distribution networks to its customers, including franchise bottlers, distributors, and retailers. It is the largest snack company in the world with 2005 revenues of more than $32 billion. Pfizer, Inc. engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals, as well as consumer healthcare products worldwide. It operates in three segments: Human Health, Consumer Healthcare, and Animal Health. In addition, the company offers empty soft-gelatin capsules, contract manufacturing, and bulk pharmaceutical chemicals. It offers its products to health care providers, such as doctors, nurse practitioners, physician assistants, pharmacists, hospitals, Pharmacy Benefit Managers, Managed Care Organizations, and government agencies. Koninklijke Philips Electronics N.V. is the parent company of the Philips group. The activities of the Philips group are divided into six operating product divisions: Medical Systems, Domestic Appliances and Personal Care, Consumer Electronics, Lighting, Semiconductors and other activities. Philips is the world’s largest lighting maker, a leading supplier of medical equipment, and Europe’s biggest consumer electronics producer. Siemens Aktiengesellschaft operates as an electronics and electrical engineering company worldwide. The Information and Communications segment offers analogue and digital telephones, enterprise solutions, carrier networks, wireless modules, and information technology (IT) environment integration, and IT consulting services. The company’s Automation and Control segment provides products and services in low voltage control and installation technology; automation, motion control, and drive system; and process automation areas. Siemens Power segment offers equipment for converting energy into electricity and heat; and supplies various power-related equipment, systems, and services. The company’s Transportation segment provides products and services for railway transportation. The Medical segment offers diagnostic and therapeutic systems and devices, and information technology systems for clinical and administrative purposes. Siemens’ Lighting segment offers lighting products for various applications. The Financing and Real Estate segment offers various services, including equipment and sales financing, project and export {00174782.DOC}12
    • financing, investment management, and insurance services, and provides real estate development, disposal, lease, and management services. Starbucks Inc. engages in the purchasing, roasting, and sale of whole bean coffees worldwide. The company also sells brewed coffees, espresso beverages, cold blended beverages, food items, teas, branded coffee drinks, a line of ice creams, and a line of compact discs through its retail stores. In addition, its stores offer pastries, sodas, juices, games, and seasonal novelty items, as well as coffee-related accessories and equipment, such as coffee grinders, coffeemakers, coffee filters, storage containers, travel tumblers, and mugs. Starbucks operates retail stores primarily in the United States, Canada, the United Kingdom, Australia, Singapore, and Thailand. By the end of 2005 Starbucks operated 5,028 stores domestically, 1,188 stores internationally, and over 2,500 licensed locations and joint ventures both domestically and abroad. Their long term goal is to open up 15,000 domestic stores and 15,000 international stores. The company is headquartered in Seattle, Washington. streetTRACKS Dow Jones STOXX 50 (FEU) is an exchange traded fund (ETF) that seeks to replicate the price and yield of the Dow Jones Stoxx 50 index, which is essentially the European equivalent of the U.S. Dow Jones Industrial Average. The fund will typically invest at least 90% of its assets in component securities that comprise the Dow Jones Stoxx 50 index. It may also invest in money market instruments, convertible securities, structured notes, and options and futures contracts. The fund is nondiversified and has a total expense ratio of 0.32% and an annual holdings turnover rate of 9%. T. Rowe Price Group Inc. manages assets for individuals through mutual funds and for institutions in separate portfolios. It has a family of more than 80 stock, bond, and money market funds with low expenses. It also offers discount-brokerage and trust services, retirement accounts, and investment-management services. Fund managers are guided by the company's investment philosophy of controlling risk, resulting in relatively stable fund returns. Nearly all of its funds have below-average expenses compared with other funds in the same categories. Its portfolio managers are careful about their investments, paying attention to valuation and not betting the farm on any one stock or sector. Toyota Motor Corporation and its subsidiaries engage in the production and sale of automobiles. The company operates in three segments: Automotive Operations, Financial Service Operations, and Other Operations. The Automotive Operations segment designs, manufactures, assembles, and sells cars, recreational and sport- utility vehicles, minivans and trucks, and related parts and accessories. The Financial Services Operations segment primarily provides financing to dealers and their customers for the purchase or lease of Toyota vehicles. This segment also provides retail financing, retail leasing, wholesale financing and insurance, credit cards, and mortgage loans. Toyota sells its vehicles in over 170 countries, but mainly operates in Japan, North America, and Europe. Toyota Motor Corp. was founded in 1933 and is based in Toyota City, Japan. {00174782.DOC}13
    • Univision Communications Inc. is a Spanish-language media company in the United States. It operates in four business segments: Television, Radio, Music and Internet. The Company's Television segment consists primarily of the Univision, TeleFutura and Galavision television network, the Univision Television Group owned- and-operated broadcast television stations and the TeleFutura Television Group owned-and-operated broadcast television stations. Univision Radio, which operates in the Company's Radio segment, is a Spanish-language radio broadcasting company in the United States. The Company's Music segment consists of its music recording and music publishing business, which includes the Univision Records label, Fonovisa Records and an ownership interest in Disa Records. In the Internet segment, Univision Online, Inc. operates the company's internet portal, which provides Spanish-language content directed at Hispanics in the United States, Mexico, and Latin America. The company has been steadily gaining market share in the Hispanic segment of the population and is the 5th most-watched TV network in the U.S. (including English-speaking). Univision put itself up for sale in early 2006, and is currently negotiating with Mexico’s Televisa media company. Waste Management, Inc (WMI) provides waste and environmental services in North America. The company provides collection, transfer, recycling and resource recovery, disposal, and landfill services. Waste Management also develops, operates, and owns waste-to-energy facilities in the United States. WMI also rents and services portable restroom facilities to cities and commercial customers; and provides street and parking lot sweeping services. WMI’s customers include commercial, industrial, municipal, and residential customers; other waste management companies; electric utilities; and governmental entities. The Company manages and evaluates its operations through seven operating Groups, five of which are organized by geographic area (Eastern, Midwest, Southern, Western and Canadian Groups) and two of which are organized by function (Recycling and Wheelabrator Groups). {00174782.DOC}14