Lehman Global May 2007

Index & Portfolio Analysis
June 5, 2007
Gabriela Baez, CFA

1.212.526.9374
gbaez@lehman.com
Jennifer C. Liu
1.212.526.6115
jeliu@lehman.com
Zhan Shen
1.212.526.6933
zhshen@lehman.com
Gabriela Baez, CFA

212-526-9374
Global Index Performance Monthly Review

May 2007 Performance Review
The global equity markets continued to rally in May on the back of increasing M&A activity and a strong
earnings season. An FOMC meeting on May 9 left the benchmark U.S. interest rate unchanged at
5.25% as the Fed maintained that inflation remained the predominant economic risk. The MSCI World,
EAFE, and EMF indices are up 3.37%, 3.20%, and 4.01%, respectively, last month.
On a net basis in May, investors put $570 million into global ETFs, $513 million into European ETFs,
and took $561 million out of Asian Pacific ETFs. The iShares MSCI EAFE Index Fund (EFA) was up
2.36% and experienced net cash inflows of $438 million last month. Year-to-date, EFA has net inflows
of $4.62 billion and global ETFs have total net inflows of $5.46 billion.
The MSCI Emerging Markets Index (EMF) was up 4.01% for the month (up 4.95% in USD terms). For
the second consecutive month, investors increased their stake in the emerging markets ETF space as
net flows in May were $1.0 billion. The iShares MSCI Emerging Market Index Fund (EEM) was up
4.93% for the month and experienced a net cash inflow of $456 million. Year-to-date, EEM has net
inflows of $42 million and VWO has net inflows of $1.06 billion.
Nearly every regional MSCI index was up in May, with the emerging market regions leading in
outperformance. MSCI Latin America and Asia were the best performing regional indexes, up 6.83%
and 5.85% for the month, respectively, while Europe, Middle East, & Africa was the worst performing
regional index, down 1.44%. In the developed markets, performance across the Pacific, Europe, and
North America regions was relatively similar. The North America region was up 3.54%, Pacific was up
3.25%, and Europe was up 3.18%.
The MSCI May 2007 Annual Review was effective at the close on May 31, 2007. MSCI announced the
changes after the close on May 3, 2007. We estimate index managers needed to trade more than $16
billion cross the developed markets to rebalance their portfolios. On the rebalance date, the overall
buys less sells spread was up 0.71%, the EAFE spread was up 0.84% and the Kokusai spread was up
0.87%, from open to close. We recap the performance of the trade.
On June 1, S&P announced that it make a number of additions and deletions during the upcoming
S&P/ASX quarterly rebalance, effective at the close on June 15, 2007. S&P and the Australian Stock
Exchange initially announced the undertaking of a consultation process with interested index
stakeholders, focusing on the issue of foreign-domiciled companies and the domestic suite of
S&P/ASX indices on May 18, 2006. We highlight the changes to the S&P/ASX 200 (AS51) and project
weight changes and indexer flows.
The annual Russell Reconstitution will take place at the close on June 22, 2007. We estimate Russell
managers will need to trade $59.0 billion to rebalance their portfolios. A large slice of the MSCI
Standard U.S. securities will be involved in the reconstitution and we highlight the top names.
In this report and going forward, we include three additional futures products in our optimized portfolio
to track the MSCI ACWI ex-US. They include the S&P/CNX Nifty (NIFTY), Bombay Stock Exchange
Sensitive Index (SENSEX), and FTSE/Xinhua China 25 Index (FCX25).
Lehman Brothers does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of
interest that could affect the objectivity of this report.
Customers of Lehman Brothers in the United States can receive independent, third-party research on the company or companies covered in this report, at no cost to them,
where such research is available. Customers can access this independent research at www.lehmanlive.com or can call 1-800-2LEHMAN to request a copy of this research.
Investors should consider this report as only a single factor in making their investment decision.
PLEASE SEE ANALYST(S) CERTIFICATION AND IMPORTANT DISCLOSURES BEGINNING ON PAGE 37.

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June 5, 2007
Table of Contents
May Performance Review.............................................................................................................3
MSCI Developed Markets: Performance Summary ..................................................................3
MSCI Emerging Markets: Performance Summary ....................................................................4
MSCI Regional and Sector Performance ..................................................................................5
Largest Contributors..................................................................................................................6
Outlook........................................................................................................................................10
Recap of the MSCI May 2007 Annual Review ........................................................................10
S&P/ASX Quarterly Rebalance Additions & Deletions ...........................................................10
MSCI U.S. Names Involved in Russell Reconstitution ............................................................10
Industry Group Performance in June ......................................................................................10
Recap: MSCI May 2007 Annual Review.....................................................................................12
MSCI Annual Review: Benchmark Analysis............................................................................12
Performance on May 31 ..........................................................................................................13
Regional Analysis ....................................................................................................................15
Stock Level Analysis ...............................................................................................................17
Reversion ................................................................................................................................18
Topic: S&P/ASX June Quarterly Rebalance Additions and Deletions........................................20
Topic: MSCI U.S. Names Involved in Russell Reconstitution.....................................................21
Monthly Performance Data .........................................................................................................22
Liquidity Analysis.........................................................................................................................28
Exchange Traded Funds Activity ................................................................................................29
Optimized CFTC Approved Futures Portfolios to Track MSCI Benchmarks ..............................30
Trading Statistics.........................................................................................................................33
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June 5, 2007
May Performance Review

MSCI Developed Markets: Performance Summary
The MSCI World,
EAFE, and EMF
indices are up 3.37%,
The global equity markets continued to rally in May on the back of increasing M&A activity and a strong
earnings season. An FOMC meeting on May 9 left the benchmark U.S. interest rate unchanged at 5.25%
as the Fed maintained that inflation remained the predominant economic risk. The MSCI World, EAFE,
and EMF indices are up 3.37%, 3.20%, and 4.01%, respectively, last month.
3.20%, and 4.01%,

respectively, last
month.
The MSCI World and EAFE indexes opened up for the first few days in May, driven by positive earnings
reports from companies like MasterCard (MA UN), Verizon (VZ UN), and Time Warner (TWX UN). The
announcement of numerous mergers and takeovers boosted the equity markets. They include (in
chronological order) NewsCorps $5.5 billion offer for Dow Jones; Goldman Sachs 27.5 billion offer for
Alltel; UniCredit $29.5 billion offer for Capitalia; Royal Bank Groups $95.6 billion counteroffer for ABN
Amro; and Alcoas increased $33 billion offer for Alcan.
Lehman Brothers also provided a fairness opinion to Cablevision's public shareholders. Lehman
Brothers is advising the Managing Board of ABN AMRO on its potential merger with Barclays PLC
and on its sale of LaSalle to Bank of America as well as the bid from the consortium of Royal Bank
of Scotland, Santander and Fortis. Lehman Brothers is acting as financial advisor to Alcoa Inc. in
its potential acquisition of all of the outstanding common shares of Alcan Inc.
Performance was mixed during the middle of the month as weaker-than-forecasted earnings at power
companies and lower forecasted consumer spending clouded the marketplace. An unexpected jump in
new-home sales overshadowed expectations that the Fed would lower interest rates. Positive
macroeconomic data (the ISM index rose to the highest level in almost a year, higher worker productivity
and slower growth in the cost of labor) and falling oil prices also supported the markets in May. The month
ended on a positive note due to M&A and earnings news.
MSCI World had its largest daily gain on May 2, up 0.74%, as U.S. companies announced stronger than
expected earnings, and its largest daily loss on May 24, down 0.83%, after the unexpected rise in newhome sales. MSCI EAFE had its largest daily loss on May 8, down 0.71%, and its largest daily gain of
0.91% on the business day of the month, May 31. Simultaneously, the MSCI May 2007 Annual Review
was effective at the close on May 31. Figure 12 summarizes a timeline of events in May.
On a net basis, investors put $570 million into global ETFs, $513 million into European ETFs, and took
$561 million out of Asian Pacific ETFs in May. The iShares MSCI EAFE Index Fund (EFA) was up 2.36%
and experienced net cash inflows of $438 million. Year-to-date, EFA has net inflows of $4.62 billion and
global ETFs have total net inflows of $5.46 billion. We highlight international ETF activity on page 29.
Figure 1: MSCI World May Performance

104.00
Figure 2: MSCI EAFE May Performance

1.00%
104.00
1.00%
0.75%
103.00
103.00
0.50%
102.00
0.25%
101.00
0.50%
102.00
0.00%
-0.25%
100.00
0.00%
101.00
-0.50%
-0.50%
100.00
99.00
-0.75%
Note: Returns are measured in local currency assuming net dividends reinvested.
Source: Lehman Brothers, FAME Data Services
99.00
-1.00%
30-Apr
1-May
2-May
3-May
4-May
7-May
8-May
9-May
10-May
11-May
14-May
15-May
16-May
17-May
18-May
21-May
22-May
23-May
24-May
25-May
28-May
29-May
30-May
31-May
-1.00%
30-Apr
1-May
2-May
3-May
4-May
7-May
8-May
9-May
10-May
11-May
14-May
15-May
16-May
17-May
18-May
21-May
22-May
23-May
24-May
25-May
28-May
29-May
30-May
31-May
98.00
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June 5, 2007
The U.S. dollar strengthened relative to almost every currency in the developed markets in May, hurting
returns to U.S. investors with assets invested abroad. U.S. dollar-based investors tracking MSCI EAFE
without hedging currency exposure experienced a return of 1.75% while the index was up 3.20% in local
currency in last month.
In particular, the U.S. dollar strengthened relative to the three currencies which make up the largest
portion of the developed markets. For the month, the Euro weakened 1.42%, the British Pound was down
1.06%, and the Japanese Yen was down 1.93% relative to the U.S. dollar. Figure 3 shows the World and
EAFE weights in terms of currency denomination and currency fluctuations in May.
In contrast, in the emerging markets, U.S. investors with assets invested abroad were buoyed with the
opportunity to capture a 4.59% return without hedging currency exposure while the index returned a return
of 4.01% in local currency.
Figure 3: MSCI World and EAFE Currency FluctuationsReturn of U.S. Dollar Relative to Foreign
Currency, m-o-m (%)
Curr
AUD
CAD
CHF
DKK
EUR
GBP
HKD
JPY
NOK
NZD
SEK
SGD
USD
World
EAFE
EAFE
World
Wgt
Wgt
Wgt
Wgt
(May-07) (Apr-07) (May-07) (Apr-07)
2.93
2.93
6.11
6.03
3.80
3.59
0.00
0.00
3.25
3.36
6.77
6.91
0.42
0.42
0.88
0.87
17.09
17.21
35.61
35.43
11.00
11.15
22.93
22.95
0.81
0.83
1.70
1.70
10.17
10.31
21.19
21.22
0.47
0.47
0.99
0.96
0.07
0.08
0.16
0.16
1.25
1.33
2.60
2.75
0.51
0.49
1.07
1.01
48.22
47.84
0.01
0.01
Jan-07
Feb-07
Mar-07
Apr-07
May-07
2007
YTD
-1.76
-1.44
-2.22
-1.50
-1.48
0.01
-0.41
-1.51
-0.59
-2.59
-1.82
-0.15
--
1.69
0.67
2.13
1.69
1.63
0.12
-0.04
2.05
1.92
1.88
-0.70
0.44
--
2.46
1.61
0.03
0.77
0.77
0.08
-0.02
0.35
0.64
2.03
0.01
0.74
--
2.94
4.20
1.15
2.46
2.46
1.93
-0.09
-1.21
2.57
3.76
4.39
-0.09
--
-0.57
3.26
-1.55
-1.39
-1.42
-1.10
0.14
-1.93
-1.49
-0.76
-3.04
-0.64
--
4.77
8.13
-0.39
2.08
2.01
1.06
-0.43
-2.23
3.05
4.37
-1.01
0.32
--
MSCI Emerging Markets: Performance Summary

The MSCI Emerging
Markets Index (EMF)
was up 4.01% for the
month (up 4.95% in
USD terms).
The MSCI Emerging Markets Index (EMF) was up 4.01% for the month (up 4.95% in USD terms). For the
second consecutive month, investors increased their stake in the emerging markets ETF space as net
flows in May were $1.0 billion. The iShares MSCI Emerging Market Index Fund (EEM) was up 4.93% for
the month and experienced a net cash inflow of $456 million. The iShares S&P Latin America (ILF),
iShares MSCI Brazil (EWZ), and Vanguard Emerging Market ETF (VWO) also experienced net cash
inflows of $326 million, $279 million, and $197 million, respectively. The iShares FTSE/Xinhua China 25
(FXI), however, experienced a net cash outflow of $371. Year-to-date, EEM has net inflows of $42 million
and VWO has net inflows of $1.06 billion. Figure 4 shows the daily performance of the MSCI EMF index in
local currency terms in May.
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June 5, 2007
Figure 4: MSCI Emerging Markets May Performance

1.50%
104.00
1.00%
103.00
0.50%
102.00
0.00%
101.00
-0.50%
100.00
-1.00%
99.00
-1.50%
30-Apr
1-May
2-May
3-May
4-May
7-May
8-May
9-May
10-May
11-May
14-May
15-May
16-May
17-May
18-May
21-May
22-May
23-May
24-May
25-May
28-May
29-May
30-May
31-May
105.00
Source: Lehman Brothers, FAME Data Services, Bloomberg
MSCI Regional and Sector Performance

Nearly every regional
MSCI index was up in
May, with the
emerging market
regions leading in
outperformance.
Nearly every regional MSCI index was up in May, with the emerging market regions leading in
outperformance. MSCI Latin America and Asia were the best performing regional indexes, up 6.83% and
5.85% for the month, respectively, while Europe, Middle East, & Africa was the worst performing regional
index, down 1.44%. In the developed markets, performance across the Pacific, Europe, and North
America regions was relatively similar. The North America region was up 3.54%, Pacific was up 3.25%,
and Europe was up 3.18%.
In the developed markets, Portugal and Finland were the best performing countries in May, up 9.23% and
7.64%, respectively. Italy and Switzerland were the worst performing countries last month, up 0.10% and
0.38%, respectively. Year-to-date, the Scandinavian countries are outperforming the other country
indexes, while Italy and Hong Kong are the underperforming their peers.
In the emerging markets, Mexico and South Korea were the best performing countries in May, with gains
of 9.92% and 8.02%, respectively. Once again, Russia and Jordan were the worst performing countries
last month, down 5.64% and 3.93%, respectively. Year-to-date, Peru and Pakistan are up 53.58% and
32.68%, respectively, while Russia and Columbia are down 11.38 and 9.71%.
In MSCI World and EAFE, Materials was the best performing sector, up 7.04% and 7.16%, respectively.
In both benchmarks, the Health Care sector was the worst performing sector in May, up 0.65% in MSCI
World and down 1.07% in MSCI EAFE.
In MSCI EMF, the Industrials sector was once again the best performing sector for the month, up 12.31%,
while the Information Technology sector, up 0.64%, was the worst performing sector. We highlight the
monthly and year-to-date country and sector performance from page 22 to 25.
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June 5, 2007
Figure 5: MSCI Developed Market (Left) and Emerging Market (Right) Country Monthly Index Performance
Asia Pacific
Australia
Hong Kong
Japan
New Zealand
Singapore
Europe
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
North America
Canada
United States
MSCI
EAFE
Wgt
MSCI
World
Wgt
Monthly
Return
Contrib
to MSCI
EAFE
Contrib
to MSCI
World
6.04
1.70
21.28
0.16
1.04
2.90
0.82
10.21
0.08
0.50
2.04
1.80
3.60
3.59
5.59
0.12
0.03
0.76
0.01
0.06
0.06
0.01
0.37
0.00
0.03
0.65
1.23
0.88
1.64
10.39
8.22
0.68
0.86
3.79
3.59
0.96
0.37
4.14
2.63
6.74
23.00
0.31
0.59
0.42
0.79
4.99
3.95
0.33
0.41
1.82
1.72
0.46
0.18
1.99
1.26
3.23
11.03
2.89
1.51
3.57
7.64
3.58
5.65
5.77
6.12
0.10
0.88
3.90
9.23
7.16
1.72
0.38
2.82
0.02
0.02
0.03
0.12
0.37
0.46
0.04
0.05
0.00
0.03
0.04
0.03
0.29
0.05
0.03
0.65
0.01
0.01
0.02
0.06
0.18
0.22
0.02
0.02
0.00
0.02
0.02
0.02
0.14
0.02
0.01
0.31
---
3.78
48.23
4.99
3.43
na
na
0.18
1.64
MSCI
Monthly
EMF Wgt Return
Asia
China
11.68
India
6.66
Indonesia
1.60
Malaysia
2.95
Pakistan
0.24
Philippines
0.56
South Korea
15.89
Taiwan
11.52
Thailand
1.45
Europe, Middle East, & Africa
Czech Republic
0.81
Egypt
0.84
Hungary
1.02
Israel - Domestic
2.18
Israel - Non Domes 0.28
Jordan
0.13
Morocco
0.34
Poland
1.79
Russia
8.99
South Africa
8.09
Turkey
1.65
Latin America
Argentina
0.76
Brazil
11.64
Chile
1.63
Colombia
0.30
Mexico
6.40
Peru
0.61
Contrib
to MSCI
EMF
7.39
5.43
1.55
2.90
4.65
7.71
8.02
3.06
5.87
0.83
0.35
0.02
0.09
0.01
0.04
1.23
0.35
0.08
3.16
6.30
6.30
4.80
-0.63
-3.93
-1.30
1.84
-5.64
-2.20
4.69
0.03
0.05
0.07
0.11
0.00
-0.01
0.00
0.03
-0.57
-0.19
0.08
7.24
6.12
2.15
-2.37
9.92
6.68
0.05
0.67
0.04
-0.01
0.60
0.04
Note: Values are shown in percent. Monthly return is measured in local currency (net dividends reinvested).
Source: Lehman Brothers, MSCI, FAME Data Services
Largest Contributors
Figure 6 to Figure 11 show the top five companies by largest positive and largest negative return
contributions to the MSCI World, EAFE, and EMF performances in USD and local currency in May.
Last month, the largest positive contributors to MSCI World performance in U.S. dollar terms were Exxon
Mobil (XOM UN), Apple (AAPL UW), and telecommunication industry leaders AT&T (T UN), Verizon
Communications (VZ UN), and Vodafone Group (VOD LN). The largest negative contributors to MSCI
World performance were largely pharmaceutical and bank sector companies: GlaxoSmithKline (GSK LN),
Amgen (AMGN UW), Unicredito Italiano (UC IM), Societe Generale (GLE FP) and Intesa SanPaolo (ISP
IM).
Vodafone Group, Rio Tinto (RIO LN), Mizuho Financial Group (8411 JT), Anglo American (AAL LN), and
DaimlerChrysler (DCX GY) were the largest positive contributors to MSCI EAFE performance in U.S.
dollar terms. GlaxoSmithKline, Unicredito Italiano, Societe Generale, Intesa SanPaolo, and Novartis
(NOVN VX) were the largest negative contributors to EAFE performance in May.
America Movil (AMXL MM), Cemex CPO (CEMEXCP MM), Posco (005490 KP), Hyundai Heavy
Industries (009540 KP), and Sinopec China (386 HK) were the largest positive contributors to MSCI EMF
performance in May in USD terms. Gazprom (GAZP RU), Samsung Electronics (005930 KP), Sberbank
Russia (SBER RM), Lukoil Holdings (LKOH RU), and Mtn Group (MTN SJ) were the largest negative
contributors to MSCI EMF performance last month.
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June 5, 2007
Figure 6: Largest Positive and Negative MSCI World Contributors (USD Currency)
Sedol
Ticker
Positive Contributors
2326618
XOM UN
2046251
AAPL UW
2831811
T UN
2090571
VZ UN
B16GWD5
VOD LN
Negative Contributors
0925288
GSK LN
2023607
AMGN UW
4232445
UC IM
5966516
GLE FP
4076836
ISP IM
Issuer
Country
GICS Industry Group
World Wgt
May-07
Return
(Local)
May-07
Return
(USD)
May-07
Contribution
(Local)
May-07
Contribution
(USD)
EXXON MOBIL CORP

APPLE
AT&T
VERIZON COMMUNICATIO
VODAFONE GROUP
US
US
US
US
GB
Energy
Technology Hardware & Equipme
Telecommunication Services
1.63%
0.30%
0.85%
0.39%
0.53%
4.77%
21.80%
6.77%
14.01%
10.10%
4.77%
21.80%
6.77%
14.01%
8.91%
0.08%
0.07%
0.06%
0.06%
0.05%
0.08%
0.07%
0.06%
0.06%
0.05%
GLAXOSMITHKLINE
GB
AMGEN
US
UNICREDITO ITALIANO OR IT
SOCIETE GENERALE
FR
INTESA SANPAOLO ORD
IT
Pharmaceuticals, Biotechnology &

Banks
Banks
Banks
0.59%
0.26%
0.28%
0.28%
0.21%
-9.59%
-12.18%
-7.98%
-7.48%
-8.25%
-10.58%
-12.18%
-9.27%
-8.78%
-9.54%
-0.06%
-0.03%
-0.02%
-0.02%
-0.02%
-0.06%
-0.03%
-0.03%
-0.02%
-0.02%
Figure 7: Largest Positive and Negative MSCI World Contributors (Local Currency)
Sedol
Ticker
2326618
XOM UN
2046251
AAPL UW
2831811
T UN
2090571
VZ UN
B16GWD5
VOD LN
0925288
GSK LN
2023607
AMGN UW
4232445
UC IM
5966516
GLE FP
4076836
ISP IM
Issuer
Country
GICS Industry Group
World Wgt
May-07
Return
(Local)
May-07
Return
(USD)
May-07
Contribution
(Local)
May-07
Contribution
(USD)
EXXON MOBIL CORP

APPLE
AT&T
VERIZON COMMUNICATIO
VODAFONE GROUP
US
US
US
US
GB
Energy
Technology Hardware & Equipme
1.63%
0.30%
0.85%
0.39%
0.53%
4.77%
21.80%
6.77%
14.01%
10.10%
4.77%
21.80%
6.77%
14.01%
8.91%
0.08%
0.07%
0.06%
0.06%
0.05%
0.08%
0.07%
0.06%
0.06%
0.05%
GLAXOSMITHKLINE
GB
AMGEN
US
SOCIETE GENERALE
FR
INTESA SANPAOLO ORD
IT

Banks
Banks
Banks
0.59%
0.26%
0.28%
0.28%
0.21%
-9.59%
-12.18%
-7.98%
-7.48%
-8.25%
-10.58%
-12.18%
-9.27%
-8.78%
-9.54%
-0.06%
-0.03%
-0.02%
-0.02%
-0.02%
-0.06%
-0.03%
-0.03%
-0.02%
-0.02%
EAFE Wgt
May-07
Return
(Local)
May-07
Return
(USD)
May-07
Contribution
(Local)
May-07
Contribution
(USD)
Materials
Banks
Materials
Automobiles & Components
1.10%
0.46%
0.42%
0.55%
0.54%
10.10%
19.43%
18.92%
13.86%
13.83%
8.91%
18.13%
16.67%
12.62%
12.24%
0.11%
0.09%
0.08%
0.08%
0.08%
0.10%
0.08%
0.07%
0.07%
0.07%

Banks
Banks
Banks
1.21%
0.59%
0.57%
0.44%
0.99%
-9.59%
-7.98%
-7.48%
-8.25%
-2.27%
-10.58%
-9.27%
-8.78%
-9.54%
-3.77%
-0.12%
-0.05%
-0.04%
-0.04%
-0.02%
-0.13%
-0.05%
-0.05%
-0.04%
-0.04%
World Wgt
May-07
Return
(Local)
May-07
Return
(USD)
May-07
Contribution
(Local)
May-07
Contribution
(USD)
Materials
Banks
Banks
Materials
1.10%
0.46%
0.42%
0.65%
0.55%
10.10%
19.43%
18.92%
12.00%
13.86%
8.91%
18.13%
16.67%
9.88%
12.62%
0.11%
0.09%
0.08%
0.08%
0.08%
0.10%
0.08%
0.07%
0.06%
0.07%

Banks
Banks
Banks
Diversified Financials
1.21%
0.59%
0.57%
0.44%
0.39%
-9.59%
-7.98%
-7.48%
-8.25%
-6.88%
-10.58%
-9.27%
-8.78%
-9.54%
-8.18%
-0.12%
-0.05%
-0.04%
-0.04%
-0.03%
-0.13%
-0.05%
-0.05%
-0.04%
-0.03%
Figure 8: Largest Positive and Negative MSCI EAFE Contributors (USD Currency)
Sedol
Ticker
B16GWD5
VOD LN
0718875
RIO LN
6591014
8411 JT
0490151
AAL LN
5529027
DCX GY
0925288
GSK LN
4232445
UC IM
5966516
GLE FP
4076836
ISP IM
7103065
NOVN VX
Issuer
Country
VODAFONE GROUP
RIO TINTO PLC
MIZUHO FINANCIAL GROU
ANGLO AMERICAN (GB)
DAIMLERCHRYSLER
GB
GB
JP
GB
DE
GLAXOSMITHKLINE
GB
SOCIETE GENERALE
FR
INTESA SANPAOLO ORD
IT
NOVARTIS
CH
GICS Industry Group
Figure 9: Largest Positive and Negative MSCI EAFE Contributors (Local Currency)
Sedol
Ticker
B16GWD5
VOD LN
0718875
RIO LN
6591014
8411 JT
6335171
8306 JT
0490151
AAL LN
0925288
GSK LN
4232445
UC IM
5966516
GLE FP
4076836
ISP IM
7266139
FORB BB
Issuer
Country
VODAFONE GROUP
RIO TINTO PLC
MIZUHO FINANCIAL GROU
MITSUBISHI UFJ FIN GRP
ANGLO AMERICAN (GB)
GB
GB
JP
JP
GB
GLAXOSMITHKLINE
GB
SOCIETE GENERALE
FR
INTESA SANPAOLO ORD
IT
FORTIS
BE
GICS Industry Group
Source: Lehman Brothers, MSCI, Bloomberg, FAME
212-526-9374
June 5, 2007
Figure 10: Largest Positive and Negative MSCI Emerging Markets Contributors (USD Currency)
Sedol
Ticker
Issuer
Country
2667470
AMXL MM AMERICA MOVIL L
2406457 CEMEXCP MMCEMEX CPO
6693233
005490 KP POSCO
6446620
009540 KP HYUNDAI HEAVY INDUSTR
6291819
386 HK
SINOPEC CHINA PET&CHE
4364928
GAZP RU GAZPROM (USD)
6771720
005930 KP SAMSUNG ELECTRONICS
4767981
SBER RM SBERBANK RUSSIA COM(
4560588
LKOH RU LUKOIL HOLDING (USD)
6563206
MTN SJ
MTN GROUP
GICS Industry Group
EMF Wgt
May-07
Return
(Local)
May-07
Return
(USD)
May-07
Contribution
(Local)
May-07
Contribution
(USD)
MX
MX
KR
KR
CN
Materials
Materials
Capital Goods
Energy
1.87%
0.89%
1.21%
0.45%
0.57%
12.82%
17.13%
13.34%
34.04%
26.74%
14.72%
19.10%
13.59%
34.33%
26.92%
0.24%
0.15%
0.16%
0.15%
0.15%
0.28%
0.17%
0.16%
0.15%
0.15%
RU
KR
RU
RU
ZA
Energy
Semiconductors & Semiconducto
Banks
Energy
3.62%
2.80%
1.29%
1.43%
0.76%
-7.58%
-6.79%
-8.01%
-3.92%
-5.73%
-7.58%
-6.59%
-8.68%
-3.92%
-6.78%
-0.27%
-0.19%
-0.10%
-0.06%
-0.04%
-0.27%
-0.18%
-0.11%
-0.06%
-0.05%
Figure 11: Largest Positive and Negative MSCI Emerging Markets Contributors (Local Currency)
Sedol
Ticker
Issuer
Country
2667470
AMXL MM AMERICA MOVIL L
6693233
005490 KP POSCO
2406457 CEMEXCP MMCEMEX CPO
6291819
386 HK
SINOPEC CHINA PET&CHE
6446620
009540 KP HYUNDAI HEAVY INDUSTR
4364928
GAZP RU GAZPROM (USD)
6771720
005930 KP SAMSUNG ELECTRONICS
4767981
SBER RM SBERBANK RUSSIA COM(
4560588
LKOH RU LUKOIL HOLDING (USD)
6205122
NINFO IS INFOSYS TECHNOLOGIES
GICS Industry Group
EMF Wgt
May-07
Return
(Local)
May-07
Return
(USD)
May-07
Contribution
(Local)
May-07
Contribution
(USD)
MX
KR
MX
CN
KR
Materials
Materials
Energy
Capital Goods
1.87%
1.21%
0.89%
0.57%
0.45%
12.82%
13.34%
17.13%
26.74%
34.04%
14.72%
13.59%
19.10%
26.92%
34.33%
0.24%
0.16%
0.15%
0.15%
0.15%
0.28%
0.16%
0.17%
0.15%
0.15%
RU
KR
RU
RU
IN
Energy
Semiconductors & Semiconducto
Banks
Energy
Software & Services
3.62%
2.80%
1.29%
1.43%
0.85%
-7.58%
-6.79%
-8.01%
-3.92%
-6.21%
-7.58%
-6.59%
-8.68%
-3.92%
-4.86%
-0.27%
-0.19%
-0.10%
-0.06%
-0.05%
-0.27%
-0.18%
-0.11%
-0.06%
-0.04%
Source: Lehman Brothers, MSCI, Bloomberg, FAME
212-526-9374
June 5, 2007
Figure 12: Event Timeline, May 2007

Date
1-May-07
2-May-07
3-May-07
4-May-07
7-May-07
8-May-07
9-May-07
10-May-07
11-May-07
14-May-07
15-May-07
16-May-07
17-May-07
18-May-07
21-May-07
22-May-07
23-May-07
24-May-07
25-May-07
28-May-07
29-May-07
30-May-07
31-May-07
World Daily World Daily

Return
Return
(Local)
(USD)
Healthscope-Led Group Offers $2.3 Bn for Symbion Health; Dow Jones Bancroft Family Rejects Murdoch's $5 Bn
0.02%
-0.12%
Japan's Wages Decline 0.4%, Hampering Growth in Consumer Spending; U.K. Manufacturing Grows at Slowest
Pace in Three Months on Stronger Pound; U.S. Manufacturing Picks Up, Housing Market Slump Persists
Yum! Profit Rises 14% on Restaurant Openings in China
Australian Central Bank Keeps Key Interest Rate Unchanged at 6.25%
0.74%
0.65%
Allianz First-Quarter Profit Surges 80% on Gains from Asset Sales; MasterCard and Time Warner Earnings Top
Analysts Forecasts; Symantec Profit Slides 49% as Sales Rise at Slowest Rate Since 2000
Cablevision to be Taken Over Private by Founding Dolan Family for $10.6 Bn
U.S. Factory Orders Rise More Than Forecasts as Businesses Boost Investment
Westpac Bank's First-Half Profit Rises to Record on Lending; UBS Profit Falls for Third Quarter; Shell First0.35%
0.28%
Quarter Profit Climbs 5.7% as Refining Earnings Advance; Starbucks Earnings Climb 18% on Frappucicino
Swedish Steelmaker SSAB Svenskt Agrees to Acquire Ipsco for $7.7 Bn
Productivity, Service-Industry Growth in U.S. Increase More Than Forecast
Australian Central Bank Cuts 2007 Inflation Forecast; Service Industries Growth in Europe Slowed for a Third
0.45%
0.51%
CVC, PAI Partners Offer $17.4 Bn for Altadis, Topping Imperial's Bid
U.S. Job Growth is at Two-Year Low; Unemployment Rate Rises to 4.5%
Sarkozy Claims Mandate for Tax Cuts, Reforms After Winning French Election
0.37%
0.51%
ABN Amro Rejects Royal Bank-Led Group's $24.5 Bn Offer for LaSalle; BAE Systems Agrees to Purchase
Armour Holdings for $4.1 Bn in Cash
EU Raises Economic-Growth Forecast to 2.6%, Inflation Outlook
Deutsche Bank Profit Rises 30% on Trading, Investment Banking Fees; Allianz Says Insurance Profit Rose in
-0.38%
-0.57%
Quarter, Earnings Fell; Adidas Profit Tops Estimates as Sales Advance; Cisco Profit Rises 34% on Sales to Small
Clients and Emerging Markets, Shares Drop on Forecast; Disney Earnings Rise 27% on Surprise Hit 'Wild Hogs'
BNP Paribas Profit Advances 25% on Investment Bank, One-Time Gains; E.ON First-Quarter Profit Jumps 50%,
0.34%
0.43%
Full-Year Net Forecast to Rise
Fed Says Inflation is 'Predominant' Risk as It Keeps Rate at 5.25%
Australia Employment Rises Four Times More Than Forecast; Bank of England Raises Interest Rates, ECB
-0.90%
-1.11%
Signals It May Follow Next Month
U.S. March Trade Deficit Widens More Than Estimated on Higher Oil Imports; U.S. Retailer Sales Declined Most
Ever in April as Cold Deterred Shoppers
AIG Reports 29% Increase in First-Quarter Profit to $4.13 Bn
Babcock Agrees to Buy Alinta for $6.5 Bn, Beating Macquarie Bank Bid; Thomson, Bidding for Reuters, Agrees to
0.58%
0.60%
Sell Two Units for $7.75 Bn; Chicago Merc Raises Bid for Board of Trade, Still Trailing ICE's Offer
China Trade Surplus Swells to $16.9 Bn as Exports Surge
China's Inflation Rate Curbs Appeal of Bank Deposits, Adds to Stock Bubble
-0.05%
-0.03%
Nokia Increases Forecast for Market; Stock Climbs to Four-Year High
Daimler Hands Chrysler to Cerberus, Ends Nine-Year, $36 Bn Investment
Japan's Machinery Orders Unexpectedly Drop, Undermining Economic Growth; Europe Economy Grows More
-0.07%
0.09%
Than Forecast in Quarter on Corporate Investment; Consumer Prices in U.S. Rise Less Than Analysts Forecast
as Economy Cools; Median Home Price in U.S. Declines 1.8% to Two-Year Low of $212,300
HeidelbergCement Agrees to Buy Hanson for $16 Bn to Gain Sand, Gravel
DaimlerChrysler Profit Doubles, Beating Estimates, as Mercedes Recovers
China's Industrial Output Climbed 17.4% in April; Bank of England Signals Rates To Rise; Unemployment Falls to
0.40%
0.26%
Two-Year Low
Credit Agricole Profit Misses Estimates on Slump at French Consumer Unit; Deere Net Drops 16%, Share
Decline as Profit Outlook Falls Short; Hewlett-Packard Profit Falls 6.5%, Sales Climb as It Tackles Dell
Japan's Economic Growth Slows; Central Bank Keeps Interest Rate Unchanged
0.07%
-0.16%
U.S. Leading Indicators Unexpectedly Fall on Housing Slump; Job Loss Slows
Oil Surges $2 on Concern Summer Gas Supply Will be Below Normal
Bernanke Warns of Subprime-Led Housing Slump, Private Equity Lending Risk
Japan's Service Demand Slips From Record, Led by Wholesalers, Retailers; U.S. Consumer Confidence
0.55%
0.59%
Unexpectedly Gains on Higher Stocks, Labor Market
Microsoft Agrees to Buy Online Ad Agency Aquantive for $6 Bn in Cash
Goldman Sachs Private Equity, TPG Agree to Buy Alltel for $27.5 Bn; UniCredit to Buy Capitalia for $29.5 Bn,
0.21%
0.09%
Creating Biggest Euro Bank; Popolare Milano to Buy Popolare Emilia for $7.6 Bn as Mergers Surge
U.K. House Prices Increase at Slowest Pace Since December
German Investor Confidence Advances More Than Forecast to 11-Month High
0.05%
0.11%
Marks & Spencer Profit Rises 22%; Shares Fall as Sales Growth Slows
Alcan Rejects Alcoa's Unsolicited $27.4 Bn Takeover Offer as Too Low
Norilsk Nickel Raises LionOre Offer to $6.3 Bn, Trumps Xstrata's Bid
0.18%
0.35%
Bank of England Signals Interest Rates to Keep Rising After Unanimous Vote
Greenspan Predicts Surging China Stocks May Undergo 'Dramatic Contraction'
Japan's Exports to U.S. Fall for the First Time in Two Years, Slowing Growth; German Business Confidence Held
-0.83%
-0.95%
at Second-Highest Level on Record in May; Sales of New Homes in U.S. Unexpectedly Jump; Durable Goods
Japan Consumer Prices Fall at Slower Pace, Signaling Inflation May Return; Existing-Home Sales in U.S.
0.15%
0.17%
Unexpectedly Drop to Lowest Level in Four Years
Nasdaq to Buy OMX for $3.7 Bn; Coca-Cola Will Buy Maker of Glaceau Vitaminwater for $4.1 Bn
0.11%
0.11%
U.S. Markets Closed in Observance of Memorial Day
Japan's Jobless Rate Unexpectedly Falls to Nine-Year Low, Spending Climbs; U.S. Consumer Confidence Rises
0.25%
0.29%
More Than Forecast on Stocks, Labor Market
China Triples Tax on Securities Trades Amid Market Records
Royal Bank Group Bids $95.6 Bn for ABN, Topping Rival Barclay's Offer
Vodafone Posts Wider-Than-Estimated Loss, Shares Rise on Growth Prospects
Fed Says Housing Will Linger as Drag on Economy, Inflation Risk Remains
0.31%
0.20%
Morgan Stanley Real Estate to Buy Australia's Investa for $3.9 Bn
0.44%
0.52%
European Business, Consumer Confidence Unexpectedly Rises to Six-Year High; U.S. Economy Grows at 0.6%
Annual Rate, Weakest Pace in Four Years; Home Prices in U.S. Climbed at Slowest Pace in Decade During First
Dell Reports Profit, Sales That Exceed Estimates, Plans to Cut 8,800 Jobs
MSCI Global Standard Indices Annual Review -- Effective at the close
News Event
EAFE Daily
Return
(Local)
-0.23%
EAFE Daily
Return
(USD)
-0.50%
0.75%
0.55%
0.23%
0.07%
0.69%
0.81%
0.47%
0.72%
-0.71%
-1.09%
0.36%
0.55%
-0.48%
-0.88%
0.12%
0.21%
0.15%
0.14%
-0.01%
0.26%
-0.09%
-0.33%
0.23%
-0.30%
0.50%
0.52%
0.24%
-0.04%
0.13%
0.26%
0.51%
0.82%
-0.63%
-0.87%
-0.29%
-0.27%
0.21%
0.37%
0.21%
0.39%
-0.28%
0.91%
-0.49%
1.03%
Lehman Brothers is acting as financial advisor to Imperial Tobacco in regards to its proposal to Altadis in relation to a possible combination of Imperial Tobacco and
Altadis. Lehman Brothers is acting as financial advisor to Chicago Mercantile Exchange Holdings on the potential merger with CBOT Holdings. Lehman Brothers is
advising Banca Popolare di Milano Scrl, an Italian regional lender in connection with the exclusive merger talks it has entered into with Banca Popolare dell'Emilia
Romagna Scrl.
Source: Lehman Brothers, Bloomberg, FAME

212-526-9374
June 5, 2007
Outlook
Recap of the MSCI May 2007 Annual Review
billion cross the developed markets to rebalance their portfolios. On the rebalance date, the overall buys
less sells spread was up 0.71%, the EAFE spread was up 0.84% and the Kokusai spread was up 0.87%,
from open to close. We recap the performance of the trade beginning on page 12.
S&P/ASX Quarterly Rebalance Additions & Deletions Effective at the close on June 15, 2007
On June 1, S&P announced that it will make a number of additions and deletions during the upcoming
S&P/ASX quarterly rebalance, effective at the close on June 15, 2007. S&P and the Australian Stock
Exchange initially announced the undertaking of a consultation process with interested index stakeholders,
focusing on the issue of foreign-domiciled companies and the domestic suite of S&P/ASX indices on May
18, 2006. We highlight the changes to the S&P/ASX 200 (AS51) and project weight changes and indexer
flows beginning on page 20.
MSCI U.S. Names Involved in Russell Reconstitution -- Effective at the close on June 22, 2007
managers will need to trade $59.0 billion to rebalance their portfolios. A large slice of the MSCI Standard
U.S. securities will be involved in the reconstitution and we highlight the top names beginning on page 21.
Industry Group Performance in June

The MSCI World and EAFE indexes have both been up 0.8%, on average, in June. On average, Software
& Service companies have been the best performers in June in MSCI World, outperforming the
benchmark for 10 of the last 12 years. Household & Personal Product companies have been the best
performers in EAFE, outperforming the benchmark for 9 of the last 12 years during June. The worst
performing names across both benchmarks have been Media and Telecommunication Service companies
in the MSCI World and EAFE, respectively. We show the historical performance of the MSCI World and
EAFE industry groups for the upcoming month in Figure 13.
10
212-526-9374
June 5, 2007
Figure 13: MSCI World and EAFE Industry Group Returns in Local Currency in June
GICS Industry Group
StDev
Avg/
StDev
Max
Min
Outperf
Bench
Pos.
Ret
5.6%
5.0%
4.7%
2.8%
3.7%
8.0%
4.2%
4.1%
3.8%
4.2%
2.8%
2.3%
3.2%
3.0%
2.9%
3.3%
3.7%
3.7%
3.2%
3.5%
4.0%
5.1%
5.9%
0.96
0.39
0.40
0.43
0.32
0.14
0.25
0.25
0.21
0.18
0.22
0.22
0.16
0.16
0.15
0.13
0.11
0.09
0.08
0.06
-0.04
-0.08
-0.11
19.4%
10.3%
8.7%
5.0%
7.9%
15.3%
8.6%
7.5%
5.7%
7.3%
4.9%
5.5%
4.3%
5.4%
3.2%
4.1%
7.6%
6.0%
4.3%
6.7%
7.2%
4.7%
4.2%
-1.3%
-8.4%
-7.8%
-5.9%
-5.1%
-16.8%
-6.3%
-7.3%
-8.3%
-6.9%
-2.9%
-2.9%
-6.6%
-5.8%
-7.2%
-6.2%
-5.8%
-8.3%
-5.2%
-4.3%
-7.6%
-12.6%
-18.0%
10
7
8
8
8
5
6
6
5
6
7
4
7
5
8
5
5
4
5
5
6
4
3
10
8
8
10
8
7
9
8
8
6
7
5
8
7
7
7
7
8
8
5
7
8
6
7.3%
3.6%
-0.3%
0.1%
2.0%
7.0%
-0.6%
-2.6%
-1.2%
-1.9%
0.4%
-0.3%
2.2%
-1.1%
0.0%
-0.7%
-3.4%
1.0%
-1.4%
-1.5%
-5.4%
1.3%
3.0%
0.8% 3.4% 0.23 4.9% -7.9%
--
-0.5% 0.6% 4.8% 2.5% 4.9% 2.0% -2.6% -7.9% 1.9% 2.0% 1.5% 0.4%
-5.0%
-12.7%
-5.1%
-11.8%
-9.0%
-10.2%
-5.1%
-5.6%
-5.3%
-10.6%
-7.7%
-3.9%
-6.2%
-6.4%
-8.1%
-5.1%
-7.7%
-6.1%
-9.4%
-8.0%
-7.5%
-18.3%
-13.6%
9
8
8
6
4
7
8
6
5
5
8
6
7
7
6
7
7
8
4
7
7
3
3
9
9
9
8
9
11
7
6
8
7
8
7
6
8
7
7
7
8
8
8
7
9
5
-5.0%
3.5%
3.2%
4.8%
-3.2%
0.2%
-2.2%
-4.1%
-3.8%
-3.7%
-1.4%
-1.4%
-0.7%
-0.6%
-3.0%
-1.5%
-1.2%
-5.4%
-6.6%
-0.9%
-0.8%
1.4%
-0.9%
0.8% 3.7% 0.21 5.3% -8.1%
--
-2.3% 0.8% 5.3% 1.0% 4.5% 1.3% -2.8% -8.1% 3.2% 2.3% 3.2% 0.9%
Avg
World Industry Groups

Software & Svcs
5.4%
Pharmaceuticals & Biotech
1.9%
1.9%
Auto & Components
1.2%
Insurance
1.2%
Retailing
1.1%
Tech Hardware & Eqp
1.1%
Food & Staples Retailing
1.0%
Cons. Durables & Apparel
0.8%
0.8%
Capital Goods
0.6%
Household & Personal Prod
Transportation
0.5%
Health Care Eqp & Svcs
0.5%
Hotels Restaurants & Leisure 0.5%
Food Beverage & Tobacco
0.5%
0.4%
Real Estate
0.4%
Energy
Commercial Svcs & Supplies 0.3%
0.2%
Utilities
0.2%
Materials
-0.1%
Banks
-0.4%
Telecommunication Svcs
-0.6%
Media
MSCI World
EAFE Industry Groups

3.9%
Household & Personal Prod
Software & Svcs
2.7%
Pharmaceuticals & Biotech
1.7%
Tech Hardware & Eqp
1.5%
Cons. Durables & Apparel
1.3%
1.2%
Insurance
1.1%
Food & Staples Retailing
1.0%
Materials
1.0%
Energy
1.0%
1.0%
Health Care Eqp & Svcs
1.0%
Utilities
0.9%
Auto & Components
0.9%
Food Beverage & Tobacco
Capital Goods
0.9%
Transportation
0.8%
Retailing
0.8%
Hotels Restaurants & Leisure 0.5%
0.4%
Banks
Commercial Svcs & Supplies 0.4%
0.2%
Real Estate
-0.6%
Media
-1.2%
Telecommunication Svcs
MSCI EAFE
5.6%
8.2%
3.4%
8.0%
5.0%
3.9%
4.0%
4.1%
4.6%
5.3%
4.4%
2.9%
4.8%
2.9%
5.1%
2.9%
4.0%
3.9%
4.7%
4.5%
4.0%
6.2%
5.9%
0.70
0.33
0.50
0.19
0.26
0.32
0.27
0.25
0.22
0.19
0.22
0.33
0.19
0.32
0.18
0.28
0.20
0.12
0.09
0.09
0.05
-0.10
-0.20
13.8%
13.5%
9.4%
18.7%
9.2%
5.4%
7.9%
7.9%
8.9%
8.3%
8.8%
4.5%
8.9%
4.0%
7.0%
4.9%
6.7%
6.5%
8.3%
5.4%
5.2%
6.4%
6.7%
Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06
2.4%
2.6%
2.6%
2.1%
1.6%
-3.5%
0.5%
2.8%
0.5%
0.7%
4.2%
-1.0%
0.1%
0.4%
3.2%
-0.5%
0.8%
-0.5%
1.9%
-2.2%
-0.1%
-0.5%
-0.4%
5.6%
7.0%
2.6%
-0.6%
3.6%
1.5%
-1.4%
-0.4%
1.4%
-0.8%
3.9%
0.0%
2.1%
1.6%
-0.1%
-0.9%
3.7%
1.2%
0.2%
3.1%
-0.5%
0.5%
-1.2%
3.7% 19.4% 9.0% 10.2%

10.3% 6.0%
3.1%
6.8%
3.3%
2.4%
6.3% -3.9%
5.0%
4.2%
0.8%
0.7%
5.0%
3.5%
7.9% -2.2%
3.7%
3.4% 15.3% 8.6%
7.4%
8.6%
0.4%
0.0%
3.3%
0.7%
7.5%
4.4%
5.7%
1.5%
5.5%
1.9%
5.9% -1.7% 7.3%
1.8%
4.9%
3.7% -2.7% 0.7%
3.2% -0.1% -0.1% 1.3%
1.7% -2.4% -2.3% 4.3%
-1.4% 1.5%
4.5% -1.3%
2.6%
3.1% -1.6% 2.8%
-0.9% -6.2% 3.1%
4.1%
4.3% -1.0% 1.7% -2.2%
4.0%
2.0%
6.0%
0.1%
3.8%
3.6%
0.4% -4.7%
3.3% -3.0% 6.7% -1.5%
7.2%
0.3%
3.3% -3.7%
4.2%
4.2%
4.7% -3.4%
0.9%
2.8%
4.2%
3.6%
4.9% -1.3% 2.1%

-3.6% -8.4% 3.7%
3.0% -7.8% 8.7%
3.1% -5.9% -0.8%
-3.7% -5.1% 3.4%
-5.1% -16.8% 1.3%
-4.8% -6.3% 2.2%
-4.0% -7.3% 2.6%
-1.6% -8.3% 4.3%
-4.0% -6.9% 3.6%
-0.9% -1.6% -2.4%
-2.9% -1.8% 0.3%
4.0% -6.6% 2.4%
-1.2% -5.8% 5.4%
-0.1% -7.2% 1.0%
1.9% -4.9% 0.8%
-5.8% -3.0% 0.6%
-3.3% -8.3% 2.2%
-2.9% -5.2% 0.2%
-3.5% -4.3% 3.0%
-1.4% -7.6% 2.1%
-7.2% -12.6% 0.8%
-3.2% -18.0% 0.5%
10.8% 8.6%
7.0% 13.8% 0.4% -1.5%
13.1% 13.5% 3.6% -4.1% -10.6% -12.7%
9.4%
2.6%
0.4%
3.3%
1.2% -5.1%
6.5%
0.4% 18.7% 2.8% -11.5% -11.8%
4.3%
0.2%
9.2%
5.2% -4.9% -9.0%
4.0%
2.4%
1.2%
2.0%
3.0% -10.2%
6.5%
7.9% -2.7% -2.1% 0.2% -5.1%
3.8% -1.8% 7.9%
3.3% -2.8% -5.6%
8.0% -2.1% 3.5%
0.5% -5.3% -5.0%
4.9% -0.8% 5.6%
7.2%
0.1% -10.6%
-1.3% -4.7% 8.8%
2.6%
1.8% -7.7%
4.5%
3.8%
3.8% -3.6% 2.5% -3.9%
1.3% -2.8% 7.3% -1.0% -1.7% -6.2%
4.0%
0.5% -0.5% 2.8%
3.7% -6.4%
5.5% -5.4% 5.9%
5.6% -4.6% -8.1%
3.7% -0.6% 0.3%
2.8% -1.8% -5.1%
1.9% -1.4% 4.1% -1.6% -3.1% -7.7%
-2.8% -2.2% 0.1%
6.5%
1.7% -6.1%
8.3%
0.0%
2.8%
1.1% -1.8% -9.4%
5.4%
0.1%
5.3%
2.1% -8.0% -7.4%
-1.6% -7.5% 5.2%
4.8%
0.7% -6.7%
-1.5% 3.2%
1.4%
6.4% -5.6% -18.3%
4.7%
6.7%
5.2% -5.4% -9.2% -13.6%
-2.0%
7.2%
1.6%
4.1%
4.9%
0.9%
4.3%
4.7%
2.5%
8.3%
2.5%
-0.7%
8.9%
-0.8%
7.0%
3.0%
6.7%
3.6%
4.4%
3.7%
0.5%
0.6%
-0.8%
5.8%
-1.4%
6.8%
2.6%
0.5%
3.1%
0.6%
1.9%
0.4%
5.1%
1.4%
5.5%
2.1%
2.2%
2.0%
1.4%
3.6%
1.4%
1.8%
3.8%
0.6%
1.7%
-0.1%
3.5%
4.7%
-1.1%
3.0%
1.8%
5.4%
3.1%
3.8%
1.8%
0.3%
2.9%
2.3%
7.1%
2.9%
3.7%
4.9%
3.2%
2.8%
1.1%
1.6%
1.4%
1.9%
0.8%
-0.6%
-1.2%
2.9%
2.6%
1.9%
-0.4%
1.7%
3.8%
2.4%
-0.4%
-2.9%
-0.4%
1.9%
0.8%
-1.3%
3.4%
7.6%
1.8%
4.3%
1.9%
1.9%
1.6%
-0.9%
1.2%
5.9%
-0.4%
2.0%
3.0%
2.6%
1.7%
3.6%
8.9%
3.4%
4.0%
3.6%
1.8%
1.2%
3.7%
3.2%
3.8%
4.6%
3.2%
2.9%
3.3%
2.2%
1.7%
2.3%
1.9%
-1.7%
0.1%
-0.7%
-3.1%
3.1%
-0.5%
-1.5%
-0.5%
2.6%
2.4%
-1.5%
1.7%
1.1%
3.7%
1.5%
-2.6%
1.3%
-0.3%
1.1%
0.6%
-0.2%
4.8%
1.0%
2.9%
-0.6%
0.3%
1.7%
2.8%
0.0%
1.4%
-2.0%
0.2%
0.7%
-4.8%
2.7%
0.7%
1.9%
1.4%
1.8%
2.0%
-3.3%
3.6%
0.5%
-2.0%
Source: Lehman Brothers, FAME
11
212-526-9374
June 5, 2007
Recap: MSCI May 2007 Annual Review

MSCI Annual Review: Benchmark Analysis
billion cross the developed markets to rebalance their portfolios. On the rebalance date, the overall buys
less sells spread was up 0.71%, the EAFE spread was up 0.84% and the Kokusai spread was up 0.87%,
from open to close.
There were a number of notable differences in this years annual review relative to prior years. First, in
anticipation of the enhanced methodology changes to be implemented during the November 2007 and
May 2008 quarterly reviews, MSCI used the enhanced methodology market capitalization cut-offs for
inclusion to reduce turnover during this annual review. Consequently, there were far fewer additions and
deletions in this years rebalance and the turnover was half of previous years. In addition, MSCI
announced the changes one week earlier this year, extending the inclusion period. Finally, there were a
remarkable number of takeover offers for MSCI targets announced during this lengthened inclusion
period, resulting in many of the targets trading upwards.
We can see the announcement effect as the EAFE adds opened 1.88% higher and the EAFE deletes
opened 0.38% lower on the morning after the announcement of the changes. During the Inclusion Period
(from the open after the announcement to the close on the rebalance date), the buys went up and the
sells also went up, but less in magnitude, resulting in a positive spread for the major MSCI benchmarks
over the inclusion period of 3.65%, 2.70% in Europe, 3.93% in Kokusai, and 3.52% in World. Most
categories performed in-line with indexer flows with the exception of the North American deletes, which
were up over most of the inclusion period. On the rebalance date, the buys outperformed the sells in
every benchmark and we saw spreads around 70-85 bps, much lower than in the past four annual
reviews.
Figure 14 shows the performance of the various rebalance categories by benchmark since the
announcement of the rebalance on May 3 and on the rebalance date, May 31.
Figure 14: Performance of MSCI Annual Review by Benchmark

MSCI EAFE
PERFORMANCE
Additions
Deletion
Funding
FIF/Sh. Increases
FIF/Sh. Decreases
All Buys
All Sells
Index
Additions - Deletion
All Buys - Sells
Untrad. Gap
Inclusion
Period
1.88%
-0.38%
0.28%
0.72%
-1.67%
1.11%
-1.19%
0.00%
2.26%
2.30%
8.89%
-3.12%
1.95%
2.48%
1.35%
4.67%
1.02%
1.97%
12.02%
3.65%
MSCI Europe
MSCI Kokusai
MSCI World
Inclusion
Period
Inclusion
Period
Inclusion
Period
Rebalance
Day
8.11%
-3.09%
1.92%
2.41%
1.39%
4.61%
1.09%
1.95%
11.20%
3.52%
0.74%
0.48%
0.17%
0.89%
0.06%
0.83%
0.12%
0.44%
0.25%
0.71%
Rebalance
Untrad. Gap
Day
1.18%
0.51%
0.20%
0.92%
0.12%
1.01%
0.17%
0.91%
0.67%
0.84%
1.63%
-1.13%
-0.08%
0.51%
-3.39%
0.86%
-2.50%
0.00%
2.76%
3.36%
8.40%
-2.89%
2.06%
2.35%
2.01%
4.28%
1.58%
1.74%
11.29%
2.70%
Rebalance
Untrad. Gap
Day
1.07%
-0.07%
0.08%
0.86%
0.09%
0.93%
0.07%
0.79%
1.15%
0.86%
1.52%
-0.92%
0.06%
0.55%
-2.36%
0.91%
-1.74%
0.00%
2.44%
2.65%
9.57%
-3.54%
1.88%
2.27%
1.37%
5.01%
1.08%
1.78%
13.11%
3.93%
Rebalance
Untrad. Gap
Day
0.94%
-0.11%
0.05%
0.85%
0.01%
0.88%
0.01%
0.34%
1.05%
0.87%
1.53%
-0.37%
0.28%
0.69%
-1.41%
1.01%
-1.01%
0.00%
1.90%
2.02%
Note: Performance is trade-weighted and measured in USD. Untrad. Gap is the return between the close prior to announcement and the following days open. Inclusion
Period is the return between the open after announcement and the most recent close. Rebalance Day is the return from the open to the close on the rebalance day.
Source: Lehman Brothers, MSCI
12

212-526-9374
June 5, 2007
Performance on May 31
In general, the
rebalance in the Asia
Pacific region moved
in line with indexer
flows, with the net
buys outperforming
the net sells by 0.92%.
Asia Pacific
In general, the rebalance in the Asia Pacific region moved in line with indexer flows, with the net buys
outperforming the net sells by 0.92%. The exceptions were the deletions.
The additions in the Asia Pacific region were up 1.64%, while the deletions were up 1.77%. The deletions
performance was driven by the deletions in Japan (up 2.29% for the day). Eight of the nine Japanese
deletions had positive performance for the day, with Arrk Corp (7873 JP, up 4.55% for the day) and
Uniden (6815 JP, up 4.19% for the day) leading the way (by contrast the Topix index was up 1.26% for
the day).
The Singapore portion of the MSCI review was completed at the close on May 30 (Singapore markets are
closed on May 31). The buys outperformed the sells by 4.87% on the rebalance date, largely due to
underperformance in the two largest and most illiquid sells: Creative Technology (CREAF SP) and
Venture Corp (VMS SP).
The Asia Pacific slice of the rebalance contributed 30.99 basis points to the outperformance of the overall
rebalance spread. The spread opened up following the open of trading in Japan and continued to
outperform during the morning. However, the spread reverted in the early afternoon as was down by as
much as 40 basis points before rallying at the close to finish in positive territory for the day.
In general, the
rebalance in Europe
moved in the direction
Europe
In general, the rebalance in Europe moved in the direction of indexer flows, with the buys outperforming
the sells by 0.86% for the day. Norway and the UK had the highest contributions to the performance of the
European spreads, as the net buys in both countries rallied. On the other hand, the Netherlands and
Sweden had a negative contribution to the overall performance of the European spread.
of indexer flows, with

the buys
outperforming the sells
by 0.94% for the day.
The additions were up 1.81%, while the deletions were up 0.39%. The deletes had opened higher, but
were underperforming throughout the afternoon. The float increases were up 1.80%, the share increases
were up 1.81%, the float decreases were up 1.14%, the share decreases were up 0.38%, and the funding
slice was up 0.79% on May 31.
The European slice of the trade contributed 51.13 basis points to the outperformance of the global
rebalance spread. The European spread rallied throughout the day and especially in the last hour of
trading. There was a small reversion at the close.
The buys less sells

spread was up 0.10%
North America
The buys less sells spread was up 0.10% for the North America region on May 31. In general, the
different rebalance categories moved in the direction of indexer flows, with the exception of the additions.
The US portion of the trade had a negative contribution to the performance of the spread.
for the North America

region on May 31.
The additions were down 0.31% for the day, with Hertz (HTZ, down 3.51%) and Forest City (FCE/a, down
2.95%) leading the way (by contrast, the S&P 500 was up 0.03%). The two deletions (both Canadian
companies) were down 1.63% for the day, after starting the day in positive territory. A large portion of the
underperformance happened at or near the close.
The float increases were up 0.55%, the share increases were up 0.23%, the float decreases were down
0.19%, the share decreases were down 0.27%, and the funding slice was up 0.09% on May 31.
The North America slice of the rebalance contributed 1.22 basis points to the outperformance of the global
buys less sells spread. The North America spread opened higher and was up as much as 55 basis points
in the early morning. However, the spread retreated throughout the day and was in negative territory
before a turnaround at the close pushed the spread into positive territory for the day.
13
Kokusai Additions
Europe Additions
EAFE Buys
Kokusai Buys
Europe Buys
EAFE Sells
Kokusai Sells
101.50
99.50
Europe Sells
102.50
5/ Clo
30 s
e
5/ / 07 5/3
30 6
0
:
5/ / 07 52 P
30 7
/ :4 M
5/ 07 7 P
30 8: M
5/ / 0 42
30 7
9 PM
5/ / 07 :38
30 1
0 P
5/ / 07 :33 M
31 1
/ 0 1:2 P M
5/ 7 1 9
31 2: P M
2
5/ / 07 4 A
31 1
/ :2 M
5/ 07 0 A
31 2: M
1
5/ / 07 5 A
31 3
/ :1 M
5/ 07 0 A
31 4: M
0
5/ / 07 5 A
31 5
: M
5/ / 07 01 A
31 5
/ :5 M
5/ 07 6 A
31 6: M
5
5/ / 07 1 A
31 7
: M
5/ / 07 49 A
3
8
5/ 1/ 0 :51 M
31 7
9 A
5/ / 07 :48 M
31 1
A
/ 0:
M
5/ 07 1 44
31 1 A
/ 0 :4 M
5/ 7 1 0 A
31 2 M
:
5/ / 07 36 P
31 1
/ :3 M
5/ 07 2 P
31 2: M
2
5/ / 07 9 P
31 3
/ 0 :26 M
7
4: P M
21
P
M
5/ Clo
30 s
e
5/ / 07 5/3
30 6
/ :4 0
5/ 07 4 P
30 7: M
3
5/ / 07 1 P
30 8
/ :1 M
5/ 07 8 P
3
9
M
5/ 0/ 0 :05
30 7
P
M
/ 9
5/ 07 :53
30 10 P
5/ / 07 :40 M
31 1
/ 0 1: P M
5/ 7 1 28 P
31 2:
1 M
5/ / 07 5 A
31 1
M
/ 0 :02
5/ 7
31 1: A M
50
/
0
5/ 7
31 2 A M
/ :3
5/ 07 7 A
31 3: M
2
5/ / 07 4 A
31 4
/ :1 M
5/ 07 1 A
31 4: M
5
5/ / 07 9 A
31 5
/ :4 M
5/ 07 6 A
31 6: M
3
/
5/ 07 3 A
31 7: M
2
5/ / 07 1 A
31 8
/ :1 M
5/ 07 2 A
31 9: M
5/ / 0 04
31 7
A
/ 9
M
5/ 07 :53
31 10 A
/ 0 :4 M
7
5/
1
31 11 A
/ 0 :2 M
5/ 7 1 9 A
31 2: M
/ 0 17
7
1: P M
04
P
M
EAFE Additions
5/ Clo
30 s
/ e
5/ 07 5/3
30 6:
2 0
5/ / 07 5 P
30 6
/ :5 M
5/ 07 7 P
30 7: M
2
/
5/ 07 7 P
30 7: M
5
5/ / 07 7 P
30 8
/ :2 M
5/ 07 7 P
30 8: M
5
/
5/ 07 7 P
3
9
M
5/ 0/ 0 :28
30 7
P
9
M
/
5/ 07 :58
30 10 P
M
/
5/ 07 :28
30 10 P
M
/
5/ 07 :58
30 11 P
5/ / 07 :29 M
31 1
P
1
/
5/ 07 :59 M
31 12 P
/ 0 :2 M
5/ 7 1 9 A
31 2: M
5
5/ / 07 9 A
31 1
M
/ :3
5/ 07 0 A
31 2: M
/ 0 00
5/ 7
31 2: A M
3
5/ / 07 0 A
31 3
/ :0 M
5/ 07 0 A
31 3: M
3
/
5/ 07 0 A
31 4: M
0
5/ / 07 0 A
31 4
/ :3 M
5/ 07 1 A
31 5: M
/ 0 01
7
5: A M
31
A
M
5/ Clo
30 s
e
5/ / 07 5/3
30 6
0
:
5/ / 07 52 P
30 7
/ :4 M
5/ 07 7 P
3
8
M
5/ 0/ 0 :42
30 7
P
M
/ 9
5/ 07 :38
30 10 P
5/ / 07 :33 M
31 1
/ 0 1: P M
5/ 7 1 29
31 2: P
2 M
/
5/ 07 4 A
31 1: M
2
5/ / 07 0 A
31 2
/ :1 M
5/ 07 5 A
31 3: M
1
5/ / 07 0 A
31 4
: M
5/ / 07 05 A
31 5
/ :0 M
5/ 07 1 A
31 5: M
5
5/ / 07 6 A
31 6
/ :5 M
5/ 07 1 A
31 7: M
4
5/ / 07 9 A
3
8
M
5/ 1/ 0 :51
31 7
9 A
5/ / 07 :48 M
31 1
A
/ 0
M
5/ 07 :44
31 11 A
/ 0 :4 M
5/ 7 1 0 A
31 2: M
3
5/ / 07 6 P
31 1
/ :3 M
5/ 07 2 P
31 2: M
2
5/ / 07 9 P
31 3
/ 0 :26 M
7
4: P M
21
P
M
Figure 15: Intraday Performance for MSCI EAFE
100.50
0.40
100.00
0.20
99.50
0.00
Figure 17: Intraday Performance for MSCI Kokusai
101.00
100.50
0.60
0.40
100.00
0.20
99.00
0.00
98.50
-0.20
Figure 19: Intraday Performance for MSCI Europe
102.00
1.00
101.50
0.80
101.00
0.60
100.50
0.40
100.00
0.20
99.50
0.00
99.00
-0.20
98.50
-0.40
Note: Performance is trade-weighted, measured in local currency. Time is EDT.

Source: Lehman Brothers, MSCI, Bloomberg
5/
31
5/ / 07
3
9
5/ 1/ 0 :30
31 7
A
M
/ 9
5/ 07 :48
31 10 A
M
5/ / 07 :07
31 1
A
M
/ 0
5/ 07 :25
31 10 A
M
/
5/ 07 :43
31 11 A
M
/
5/ 07 :01
31 11 A
M
5/ / 07 :20
31 1
A
/ 1: M
5/ 07 1 38
31 1 A
: M
/
5/ 07 56
31 12 A M
5/ / 07 :15
31 1
P
/ 0 2:3 M
5/ 7 1 3 P
31 2: M
/ 0 51
5/ 7
31 1: P M
0
/
5/ 07 9 P
31 1: M
2
5/ / 07 7 P
31 1
/ :4 M
5/ 07 6 P
31 2: M
0
/
5/ 07 4 P
31 2: M
2
/
5/ 07 3 P
31 2: M
4
5/ / 07 3 P
31 3
/ :0 M
5/ 07 1 P
31 3: M
1
/
5/ 07 9 P
31 3: M
3
5/ / 07 8 P
31 3
/ 0 :56 M
7
4: P M
14
P
M
5/
31
5/ / 07
31 3
:
5/ / 07 00 A
31 3
: M
5/ / 07 23
31 3 A
: M
5/ / 07 46
31 4 A
: M
5/ / 07 09 A
31 4
: M
5/ / 07 33
31 4 A M
:
5/ / 07 56
31 5 A
: M
5/ / 07 19
31 5 A
: M
5/ / 07 42
31 6 A M
:
5/ / 07 05 A
31 6
: M
5/ / 07 28
31 6 A
: M
5/ / 07 51
31 7 A
: M
5/ / 07 15 A
31 7
: M
5/ / 07 39
31 8 A
: M
5/ / 07 05
31 8 A
: M
5/ / 07 32
31 8 A
: M
5/ / 07 56
3
9 A
5/ 1/ 0 :19 M
31 7
A
9
5/ / 07 :44 M
31 1
0 A
5/ / 07 :08 M
31 1
0 A
5/ / 07 :31 M
31 1
0 A
5/ / 07 :54 M
31 1
/ 1 AM
5/ 07 :18
31 11 A
5/ / 07 :41 M
31 1 A
/ 0 2:0 M
7
12 4 P
:2 M
8
P
M
212-526-9374

June 5, 2007
Figure 16: Intraday Performance for MSCI World
EAFE Buys - Sells (Right Axis)
World Additions
102.50
1.20
102.00
1.00
102.00
1.00
101.50
0.80
101.50
0.80
101.00
0.60
101.00
0.60
100.50
0.40
100.00
0.20
99.50
0.00
-0.20
-0.40
99.00
-0.20
99.00
98.50
-0.40
98.50
Kokusai Buys - Sells (Right Axis)
Europe Buys - Sells (Right Axis)
1.20
World Buys
World Sells
World Buys - Sells (Right Axis)
Figure 18: Intraday Performance for MSCI Asia Pacific

Asia Pacific Additions
Asia Pacific Buys
Asia Pacific Sells
102.50
1.20
Asia Pacific Buys - Sells (Right Axis)
102.00
102.50
1.20
1.00
102.00
1.00
0.80
101.50
101.00
0.80
100.50
0.60
100.00
0.40
99.50
99.00
0.20
98.50
0.00
-0.20
98.00
-0.40
97.50
-0.60
Figure 20: Intraday Performance for MSCI North America

N. America Additions
N. America Buys
N. America Sells
101.00
N. America Buys - Sells (Right Axis)
100.80
100.60
100.40
99.40
99.20
98.80
0.60
0.50
100.20
0.40
100.00
0.30
99.80
99.60
0.20
0.10
99.00
0.00
-0.10
Note: Performance is trade-weighted, measured in local currency. Time is EDT.

14
212-526-9374
June 5, 2007
Regional Analysis
Asia Pacific
The Asia Pacific portion of the trade performed in-line with indexer flows during the inclusion period and
on the rebalance date. The 12 additions (nine in Japan, two in Hong Kong, and one in Australia)
represented 19% of the trade in Asia Pacific. Overall, the additions were up 12.00% over the inclusion
period and up on the rebalance date in Australia. Strength in the Australian addition, Fortescue Metals
Group (FMG AU), over the inclusion period and on the rebalance date buoyed the performance of the
Asia Pacific adds.
The FIF increases and decreases represented the largest portions of the Asia Pacific trade, 28% and
37%, respectively. The FIF increases were up 3.87% since May 3. While the FIF decreases were also up
1.61% during that same period due to market factors, the buys less sells spread ended up 5.75% since
May 3.
Figure 21 breaks down the performance of the different categories by country.
Figure 21: Performance of the MSCI Rebalance by Country: Asia Pacific
Country
Time Period
Australia
Untrad. Gap
Inclusion Period
Rebalance Day
Hong Kong
Untrad. Gap
Inclusion Period
Rebalance Day
Japan
Untrad. Gap
Inclusion Period
Rebalance Day
New Zealand Untrad. Gap
Inclusion Period
Rebalance Day
Singapore
Untrad. Gap
Inclusion Period
Rebalance Day
Adds
4.04%
60.54%
4.11%
3.76%
9.41%
4.00%
1.56%
3.23%
0.03%
Share
Incr.
FIF
Incr.
0.47%
-0.01%
0.73%
2.44%
-6.75%
3.15%
2.18%
3.36%
0.90%
-0.04%
13.28%
0.98%
1.63%
-1.60%
-1.08%
0.89%
3.55%
1.18%
1.58%
1.46%
1.79%
1.19%
2.96%
1.10%
0.71%
1.25%
0.41%
Deletes
0.10%
-4.45%
0.84%
0.80%
-2.13%
1.73%
-0.04%
-4.85%
1.21%
0.55%
-21.74%
-6.49%
Share
Decr.
FIF
Decr.
Other Sells
(Funding)
0.18%
-2.45%
-0.20%
2.22%
-7.07%
-0.73%
0.46%
-10.23%
0.51%
0.63%
4.95%
1.39%
1.31%
-5.47%
0.11%
1.16%
1.51%
0.19%
0.71%
1.37%
-0.10%
1.12%
-1.80%
0.92%
1.33%
2.13%
0.72%
-0.05%
0.98%
-0.02%
1.01%
0.67%
-1.71%
-0.61%
-6.79%
-4.43%
Note: Performance is trade-weighted and measured in Local Currency. Untrad. Gap is the return between the close
prior to announcement and the following days open. Inclusion Period is the return between the open after
announcement and the most recent close. Rebalance Day is the return between the close on the day prior to
rebalance to the close on the rebalance day.
Europe
In Europe, most of the different categories performed in-line with indexer flows (the buys outperformed the
sells) over the inclusion period and on the rebalance date. The 7 additions represented 16% of the MSCI
Europe trade (two each in France and Spain, and one each in Switzerland, Italy, and Norway) and were
up in every European country on the rebalance date.
In general, the 12 deletes in Europe were down during the inclusion period, but the performance was
mixed on the rebalance date. The most illiquid delete, Technical Olympic (OLYMP GA), was up 25.79%
over the inclusion period and down the most in the region, 6.10%, on the rebalance date. Similar to the
Asia Pacific trade, all the buy and sell categories were up on the rebalance date, however, the buys less
sells spread ended up on the rebalance date (and 3.65% since May 3). Figure 22 breaks down the
performance of the different categories by country.
15
212-526-9374
June 5, 2007
Figure 22: Performance of the MSCI Rebalance by Country: Europe
Country
Time Period
Untrad. Gap
Inclusion Period
Rebalance Day
Belgium
Untrad. Gap
Inclusion Period
Rebalance Day
Denmark
Untrad. Gap
Inclusion Period
Rebalance Day
Finland
Untrad. Gap
Inclusion Period
Rebalance Day
France
Untrad. Gap
Inclusion Period
Rebalance Day
Germany
Untrad. Gap
Inclusion Period
Rebalance Day
Greece
Untrad. Gap
Inclusion Period
Rebalance Day
Ireland
Untrad. Gap
Inclusion Period
Rebalance Day
Italy
Untrad. Gap
Inclusion Period
Rebalance Day
Netherlands
Untrad. Gap
Inclusion Period
Rebalance Day
Norway
Untrad. Gap
Inclusion Period
Rebalance Day
Portugal
Untrad. Gap
Inclusion Period
Rebalance Day
Spain
Untrad. Gap
Inclusion Period
Rebalance Day
Sweden
Untrad. Gap
Inclusion Period
Rebalance Day
Switzerland
Untrad. Gap
Inclusion Period
Rebalance Day
United Kingdom Untrad. Gap
Inclusion Period
Rebalance Day
Adds
Austria
1.24%
15.54%
1.21%
Share
Incr.
FIF
Incr.
-0.20%
5.75%
2.36%
0.03%
-0.98%
0.74%
-0.04%
6.67%
-1.80%
0.59%
-4.31%
-0.30%
0.97%
7.69%
0.95%
0.20%
3.39%
0.31%
1.51%
5.22%
1.72%
1.15%
3.84%
1.24%
0.31%
6.33%
1.51%
0.29%
-1.86%
-0.42%
0.03%
-4.40%
-0.31%
1.14%
2.93%
0.70%
0.06%
2.25%
0.76%
1.90%
2.34%
-0.11%
0.01%
7.72%
2.05%
0.24%
2.90%
0.79%
1.13%
-0.25%
0.24%
0.32%
1.83%
1.33%
0.35%
1.30%
0.71%
0.01%
1.43%
0.94%
-0.50%
13.80%
0.45%
0.60%
1.78%
0.41%
0.00%
33.52%
2.97%
1.01%
0.30%
0.61%
0.00%
-6.17%
-0.32%
1.81%
13.35%
2.14%
1.92%
13.69%
2.08%
-0.77%
6.77%
4.15%
2.07%
3.05%
-0.15%
-0.63%
-0.35%
0.60%
Deletes
0.00%
3.21%
-4.65%
-1.22%
-6.17%
1.33%
-1.01%
-3.08%
-0.29%
-0.48%
-10.14%
0.36%
-0.98%
0.87%
1.18%
-1.72%
1.17%
-0.57%
-1.52%
-1.35%
-0.39%
-1.81%
-5.26%
0.72%
Share
Decr.
FIF
Decr.
0.06%
0.72%
0.09%
1.13%
-4.97%
0.08%
-0.04%
-0.96%
1.11%
0.16%
0.99%
0.04%
0.00%
-1.37%
0.46%
0.56%
-3.14%
-0.97%
0.28%
-1.80%
-0.69%
-0.14%
5.52%
-0.08%
-0.35%
1.75%
1.40%
-0.07%
2.23%
-1.08%
0.00%
4.07%
-0.78%
0.43%
-1.99%
-0.40%
0.36%
2.41%
-0.34%
-12.63%
0.03%
0.40%
-0.35%
7.03%
1.09%
-0.15%
-10.37%
-3.34%
-0.28%
5.00%
-0.53%
-0.02%
0.30%
-0.54%
-0.10%
-4.18%
0.21%
0.13%
3.30%
0.29%
0.99%
7.14%
0.32%
0.18%
6.71%
-0.32%
0.19%
3.75%
0.25%
-0.03%
-0.78%
0.96%
0.75%
-0.97%
0.35%
Other
Sells
(Funding)
0.02%
2.82%
0.41%
0.28%
3.30%
1.24%
0.44%
3.24%
0.49%
-1.28%
7.01%
0.24%
0.09%
2.22%
0.12%
-0.64%
2.90%
0.40%
-0.29%
4.73%
-0.36%
-0.06%
-1.96%
-1.29%
0.20%
-0.65%
-0.32%
0.02%
1.74%
0.65%
-0.63%
-0.53%
0.43%
0.25%
7.69%
1.30%
0.30%
4.44%
0.03%
-0.32%
2.34%
0.31%
0.03%
0.98%
-0.08%
0.12%
1.41%
-0.54%
announcement and the most recent close. Rebalance Day is the return between the close on the day prior to
rebalance to the close on the rebalance day.
North America
In North America, the share decreases and additions dominated 37% and 36% of the trade, respectively.
The 14 additions (11 in the U.S. and three in Canada) were up 5.66% since May 3 and down 0.32% on
the rebalance date.
The performance of the North America trade was the weakest of the three regions due to strength in the
deletes (two in Canada). The two deletes, Angiotech Pharm (ANP CT) and QLT Inc (QLT CT), are both
pharmaceutical names and were both up as much as 8.23% and 7.77%, two weeks after the May 3
announcement. The share decrease and funding portions of the trade were also up over the inclusion
16
212-526-9374
June 5, 2007
period, contributing negatively to the buys less sells spread. The spread ended up 2.51% over the
inclusion period and up 0.10% on the rebalance date. Figure 23 breaks down the performance of the
different categories by country.
Figure 23: Performance of the MSCI Rebalance by Country: North America
Country
Adds
Share
Incr.
FIF
Incr.
0.01%
12.45%
1.09%
0.36%
4.49%
-1.10%
0.02%
-0.33%
-0.27%
0.20%
3.15%
0.30%
-0.62%
1.57%
-0.07%
0.35%
0.60%
0.52%
Time Period
Canada
Untrad. Gap
Inclusion Period
Rebalance Day
United States Untrad. Gap
Inclusion Period
Rebalance Day
Deletes
0.27%
0.01%
-1.44%
Share
Decr.
FIF
Decr.
0.35%
8.44%
-0.92%
0.35%
1.27%
-0.29%
0.22%
-3.01%
-1.31%
0.23%
3.16%
0.24%
Other
Sells
(Funding)
0.50%
0.58%
0.04%
0.29%
1.78%
-0.05%
announcement and the most recent close.
Stock Level Analysis

Figure 24 to Figure 29 show the performance of the buys and sells for the different regions between the
open and close on May 31. We show the performance of the five best and worst performing buys and
sells, the performance of the five biggest buys and sells by value to trade and the performance of the
most illiquid buys and sells. In general, the biggest buys performed in the direction of the estimated flows
on the rebalance day in Asia Pacific and Europe (not in North America).
Figure 24: Performance of Asia Pacific Buys

Ticker
Issuer
CTY Category
Best Performing Buys

MGR AU MIRVAC GROUP
AU
700 HK TENCENT HOLDINGS LIM HK
DRT AU DB RREEF TRUST
AU
148 HK KINGBOARD CHEM. HOL HK
FMG AU FORTESCUE METALS GR AU
Worst Performing Buys
4817 JQ JUPITER TELECOM
JP
4680 JT ROUND ONE CORP
JP
AG SP
ALLGREEN PROPERTIES SG
6703 JT OKI ELECTRIC INDUSTRY JP
8267 JT AEON CO
JP
Largest Values to Buy
PBL AU PUBLISHING BROADCAS AU
700 HK TENCENT HOLDINGS LIM HK
8766 JT MILLEA HOLDINGS
JP
8359 JT HACHIJUNI BANK
JP
8379 JT HIROSHIMA BANK
JP
Most Illiquid Buys
4817 JQ JUPITER TELECOM
JP
8359 JT HACHIJUNI BANK
JP
322 HK TINGYI HOLDING CORP HK
FMG AU FORTESCUE METALS GR AU
8379 JT HIROSHIMA BANK
JP
Figure 25: Performance of Asia Pacific Sells
Est. Value to
Est.
Rebalance
Trade
Liquidity Day Return
Sh. Incr.
Addition
FIF Incr.
Sh. Incr.
Addition
$3.3
$129.6
$7.7
$5.8
$87.7
17%
784%
59%
84%
1570%
7.48%
6.98%
5.35%
4.15%
4.11%
Addition
Sh. Incr.
FIF Incr.
Sh. Incr.
Sh. Incr.
$76.5
$0.1
$3.8
$2.1
$1.0
2738%
0%
84%
11%
1%
-4.72%
-2.86%
-2.70%
-2.18%
-2.15%
FIF Incr.
Addition
FIF Incr.
Addition
Addition
$204.4
$129.6
$118.6
$116.1
$107.3
484%
784%
127%
1794%
935%
1.64%
6.98%
0.83%
0.65%
1.24%
Addition
Addition
Addition
Addition
Addition
$76.5
$116.1
$70.0
$87.7
$107.3
2738%
1794%
1748%
1570%
935%
-4.72%
0.65%
-1.41%
4.11%
1.24%
Note: Performance is measured in local currency.

Ticker
Issuer
CTY Category
Best Performing Sells

2873 JT KATOKICHI CO
JP
709 HK GIORDANO INTERNATIO HK
9427 JT EACCESS
JP
2212 JT YAMAZAKI BAKING CO
JP
4521 JT KAKEN PHARMACEUTICA JP
Worst Performing Sells
CREAF SPCREATIVE TECHNOLOGYSG
VMS SP VENTURE CORP
SG
NOL SP NEPTUNE ORIENT LINES SG
OLAM SP OLAM INTERNATIONAL SG
UOL SP UNITED OVERSEAS LAN SG
Largest Values to Sell
7203 JT TOYOTA MOTOR CORP JP
8306 JT MITSUBISHI UFJ FIN GRP JP
9437 JT NTT DOCOMO
JP
2 HK
CLP HOLDINGS
HK
4502 JT TAKEDA PHARMACEUTIC JP
Most Illiquid Sells
TWR NZ TOWER
NZ
CREAF SPCREATIVE TECHNOLOGYSG
321 HK TEXWINCA HOLDINGS
HK
4521 JT KAKEN PHARMACEUTICA JP
WHS NZ WAREHOUSE GROUP
NZ
Est. Value to
Est.
Rebalance
Trade
Deletion
Funding
Funding
Funding
Deletion
-$31.0
-$0.1
-$0.1
-$0.2
-$27.0
-204%
-2%
-2%
-2%
-1347%
5.41%
4.96%
4.64%
3.90%
3.77%
Deletion
FIF Decr.
Funding
Funding
Funding
-$13.1
-$6.2
-$0.1
-$0.2
-$0.3
-1555%
-95%
-1%
-1%
-3%
-6.49%
-4.43%
-4.24%
-4.07%
-3.77%
FIF Decr.
FIF Decr.
FIF Decr.
FIF Decr.
FIF Decr.
-$451.4
-$234.5
-$163.5
-$145.5
-$121.1
-73%
-80%
-87%
-718%
-85%
0.27%
0.00%
-0.48%
0.46%
1.49%
Deletion
Deletion
Deletion
Deletion
Deletion
-$9.6
-$13.1
-$17.2
-$27.0
-$21.8
-1617%
-1555%
-1390%
-1347%
-1207%
2.62%
-6.49%
3.70%
3.77%
0.48%

17
212-526-9374
June 5, 2007
Figure 26: Performance of Europe Buys

Ticker
Issuer
CTY Category

KCR1V FHKONECRANES
FI
FKI LN
FKI
GB
UL FP
UNIBAIL HOLDING
FR
EXAE GA HELLENIC EXCHANGES GR
LUPE SS LUNDIN PETROLEUM
SE
AGS LN AEGIS GROUP
GB
BAY LN BRITISH AIRWAYS
GB
MKS LN MARKS & SPENCER GRO GB
VOE AV VOESTALPINE
AT
HUSQB S HUSQVARNA B
SE
SLHN VX SWISS LIFE HOLDING
CH
PLT IM PARMALAT
IT
SAN SQ BSCH BCO SANTANDER ES
REC NO RENEWABLE ENERGY C NO
F IM
FIAT ORD
IT
Most Illiquid Buys
ZOT SQ ZARDOYA OTIS
ES
ICA FP ICADE
FR
ADP FP ADP
FR
PLT IM PARMALAT
IT
ELN ID ELAN CORP
IE
Figure 27: Performance of Europe Sells
Est. Value to
Est.
Rebalance
Trade
FIF Incr.
Sh. Incr.
Sh. Incr.
FIF Incr.
FIF Incr.
$5.1
$0.2
$0.1
$14.4
$7.1
26%
2%
0%
268%
31%
5.60%
5.34%
5.31%
5.27%
5.05%
Sh. Incr.
Sh. Incr.
Sh. Incr.
FIF Incr.
FIF Incr.
$0.1
$1.0
$2.3
$67.4
$8.2
0%
1%
1%
243%
34%
-2.81%
-2.08%
-1.89%
-1.89%
-1.87%
Addition
Addition
FIF Incr.
Addition
FIF Incr.
$368.9
$293.4
$216.9
$202.4
$200.2
550%
1044%
13%
275%
28%
-0.15%
0.61%
2.22%
2.14%
0.81%
Addition
Addition
Addition
Addition
Sh. Incr.
$171.9
$108.9
$145.8
$293.4
$22.2
2367%
1563%
1071%
1044%
715%
2.77%
1.06%
1.31%
0.61%
2.97%
Figure 28: Performance of North America Buys

Ticker
Issuer
CTY Category

LSI UN LSI LOGIC
HOT UN STARWOOD HOT.&RES.
AKAM UWAKAMAI TECHNOLOGIES
ATI UN ALLEGHENY TECHNOLO
CDNS UWCADENCE DESIGN SYST
HTZ UN HERTZ GLOBAL HOLDIN
HES UN HESS
FCE/A UNFOREST CITY ENT. A
ICE UN INTERCONTINENTAL
AMZN UWAMAZON.COM
HES UN HESS
MIR UN MIRANT CORP
NMX UN NYMEX HOLDING
MA UN MASTERCARD A
WSH UN WILLIS GROUP HLDGS
Most Illiquid Buys
CU CT
CANADIAN UTILITIES A
WSH UN WILLIS GROUP HLDGS
REI-U CT RIOCAN REIT
FCE/A UNFOREST CITY ENT. A
BF/B UN BROWN-FORMAN CORP
Issuer

FABG SS FABEGE
RCEA NA RODAMCO EUROPE
OERL VX OC OERLIKON CORP NA
INB BB INBEV
CAST SS CASTELLUM
Worst Performing Sells
OLYMP G TECHNICAL OLYMPIC
INTRK GAINTRACOM
BIOX GA VIOHALCO COPPER CO
KGF LN KINGFISHER
BKIR ID BANK IRELAND
ELE SQ ENDESA
BN FP
DANONE (GROUPE)
CSGN VX CREDIT SUISSE
CS FP
AXA
OR FP
LOREAL
Most Illiquid Sells
OLYMP G TECHNICAL OLYMPIC
TOT ID TOTAL PRODUCE
MASN SE MICRONAS SEMICONDU
INTRK GAINTRACOM
CLST LN COLLINS STEWART
CTY Category
Est. Value to
Est.
Rebalance
Trade
SE
NL
CH
BE
SE
FIF Decr.
Funding
Funding
Funding
Funding
-$5.6
-$1.5
-$0.6
-$2.7
-$0.4
-25%
-2%
-1%
-3%
-5%
6.55%
5.51%
5.43%
4.52%
3.85%
GR
GR
GR
GB
IE
Deletion
Deletion
FIF Decr.
Sh. Decr.
Funding
-$7.3
-$20.3
-$7.7
-$6.6
-$1.5
-1712%
-716%
-189%
-3%
-2%
-6.10%
-3.94%
-3.34%
-3.22%
-3.20%
ES
FR
CH
FR
FR
FIF Decr.
FIF Decr.
FIF Decr.
FIF Decr.
FIF Decr.
-$252.7
-$230.4
-$215.7
-$215.7
-$192.3
-57%
-113%
-47%
-55%
-111%
-0.20%
-0.91%
0.92%
0.93%
0.34%
GR
IE
CH
GR
GB
Deletion
Deletion
Deletion
Deletion
Deletion
-$7.3
-$14.9
-$30.0
-$20.3
-$44.6
-1712%
-1301%
-1172%
-716%
-619%
-6.10%
1.33%
-0.39%
-3.94%
2.62%
Figure 29: Performance of North America Sells
Est. Value to
Est.
Rebalance
Trade
US
US
US
US
US
Sh. Incr.
Sh. Incr.
FIF Incr.
FIF Incr.
Sh. Incr.
$0.1
$1.0
$6.5
$4.0
$0.2
0%
1%
3%
2%
0%
3.46%
2.96%
2.84%
2.65%
2.62%
US
US
US
US
US
Addition
Addition
Addition
Addition
Sh. Incr.
$16.6
$117.3
$33.1
$44.4
$0.3
83%
76%
176%
12%
0%
-3.64%
-3.49%
-3.38%
-2.63%
-2.26%
US
US
US
US
US
Addition
Addition
Addition
Addition
Addition
$117.3
$92.8
$76.8
$72.7
$52.8
76%
67%
119%
24%
218%
-3.49%
-1.09%
-0.43%
0.38%
1.89%
CA
US
CA
US
US
Addition
Addition
Addition
Addition
Addition
$16.7
$52.8
$18.8
$33.1
$27.3
649%
218%
210%
176%
128%
1.92%
1.89%
0.08%
-3.38%
-0.38%

Ticker
Ticker
Issuer
CTY Category

AEM CT AGNICO-EAGLE MINES CA
TDS/S UATELEPHONE & DATA SYS US
K CT
KINROSS GOLD CORP
CA
NVT UN NAVTEQ CORP
US
BMC UN BMC SOFTWARE
US
ADCT UWADC TELECOMMUNICAT US
A CT
ABITIBI-CONSOLIDATED CA
MCO UN MOODYS CORP
US
TIF UN TIFFANY & CO
US
ACI UN ARCH COAL
US
XOM UN EXXON MOBIL CORP
US
TWX UN TIME WARNER
US
GS UN
GOLDMAN SACHS GROU US
BAC UN BANK OF AMERICA COR US
GE UN
GENERAL ELECTRIC CO US
Most Illiquid Sells
QLT CT QLT
CA
ANP CT ANGIOTECH PHARM
CA
BAM/A CTBROOKFIELD ASSET MA CA
LINTA UWLIBERTY INTERACTIVE A US
NXY CT NEXEN
CA
Est. Value to
Est.
Rebalance
Trade
Funding
Funding
Funding
Funding
Sh. Decr.
-$0.2
-$0.1
-$0.3
-$0.1
-$0.5
-1%
-5%
-1%
0%
-1%
4.62%
4.32%
4.16%
4.03%
3.98%
Funding
Funding
Funding
Sh. Decr.
Funding
-$0.1
$0.0
-$0.6
-$1.3
-$0.2
0%
0%
0%
-2%
0%
-5.58%
-4.04%
-4.02%
-3.98%
-3.51%
Sh. Decr.
Sh. Decr.
Sh. Decr.
Sh. Decr.
Sh. Decr.
-$84.2
-$29.5
-$23.7
-$22.0
-$21.9
-5%
-6%
-2%
-3%
-1%
-0.99%
-0.79%
-0.54%
-0.49%
-0.32%
Deletion
Deletion
FIF Decr.
Sh. Decr.
FIF Decr.
-$4.3
-$4.3
-$10.1
-$10.4
-$13.2
-334%
-172%
-33%
-21%
-20%
-2.47%
-0.42%
-1.64%
0.71%
-1.48%

Reversion
Figure 30 shows the performance of the different rebalance categories by region on the rebalance date
(May 31) and the following day. The additions and the deletes both went up on the rebalance day.
However, both the additions and deletions categories experienced reversion one day after the rebalance
day (the adds went down and deletes went up). Although the buys less sells spread was negative on June
1, reversion less apparent in the other buys and sells categories.
18
212-526-9374
June 5, 2007
Figure 30: MSCI Rebalance Performance on May 31 and June 1, 2007

Performance in Local Currency
Weight in
Number
Total
of Names
Trade
Addition
19.1%
33
FIF Increase
27.3%
201
Share Increase
3.6%
170
Deletion
FIF Decrease
Share Decrease
Funding
4.6%
27.5%
9.3%
8.6%
Illiquid Buys
Illiquid Sells
Illiquid Buys - Sells
All Buys
All Sells
Buys - Sells
1-Day Return (May 31)

EAFE
Asia
Pacific
1.73%
1.79%
1.92%
28
128
246
1106
31.1%
25.1%
56.2%
50.0%
50.0%
100.0%
1-Day Return (June 1)
Europe
North
America
EAFE
Asia
Pacific
Kokusai
World
Europe
North
America
1.63%
1.74%
2.09%
1.81%
1.82%
1.84%
-0.32%
0.55%
0.30%
1.63%
1.73%
1.63%
Kokusai
World
1.29%
1.74%
1.72%
-0.27%
0.37%
0.95%
-0.11%
0.28%
1.06%
-0.39%
0.42%
0.90%
0.54%
0.22%
0.29%
-0.09%
0.26%
0.65%
-0.10%
0.36%
0.87%
1.10%
0.90%
0.31%
1.03%
1.78%
0.59%
0.25%
1.24%
0.61%
1.14%
0.31%
0.95%
-1.63%
-0.18%
-0.27%
0.08%
0.49%
1.05%
0.03%
0.80%
1.07%
0.88%
0.03%
0.90%
1.70%
1.10%
0.68%
0.71%
0.53%
1.03%
-0.30%
0.55%
2.57%
1.15%
0.74%
0.76%
1.61%
0.58%
0.34%
0.58%
2.42%
1.08%
0.52%
0.71%
1.70%
1.09%
0.52%
0.69%
105
94
199
1.70%
0.83%
0.88%
1.66%
0.82%
0.83%
1.74%
0.83%
0.91%
-0.80%
-1.63%
0.83%
1.71%
0.77%
0.94%
1.48%
0.82%
0.66%
-0.11%
1.08%
-1.19%
-0.02%
0.97%
-0.99%
-0.18%
1.18%
-1.36%
0.76%
1.61%
-0.86%
-0.11%
1.13%
-1.24%
-0.03%
1.08%
-1.12%
404
1508
1912
1.78%
0.87%
0.91%
1.72%
0.80%
0.92%
1.82%
0.91%
0.91%
-0.10%
-0.21%
0.10%
1.68%
0.70%
0.99%
1.56%
0.74%
0.82%
0.18%
1.04%
-0.86%
0.17%
0.89%
-0.72%
0.19%
1.13%
-0.95%
0.46%
0.41%
0.05%
0.15%
0.98%
-0.82%
0.21%
0.97%
-0.75%
Note: Performance is trade-weighted. Illiquid buys and sells are names with expected shares to trade representing over one days average volume.
Source: Lehman Brothers, Bloomberg, MSCI
19
212-526-9374
June 5, 2007
Topic: S&P/ASX June Quarterly Rebalance Additions and Deletions -- Effective at the
close on June 15, 2007
S&P announced that it
will make a number of
On June 1, S&P announced that it will make a number of additions and deletions during the upcoming
S&P/ASX quarterly rebalance, effective at the close on June 15, 2007. We highlight the changes to the
S&P/ASX 200 (AS51) below and project weight changes and indexer flows.
additions and
deletions during the
upcoming S&P/ASX
quarterly rebalance,
effective at the close
In accordance with the S&P/ASX methodology changes that extend index eligibility to foreign domiciled
stocks, News Corporation (NWS) was considered for inclusion based upon the aggregate market value of
its CHESS Depository Interests (CDIs) traded on the ASX. S&P has combined the Australian equity
capital of NWS (voting shares) and NWSLV (non-voting shares) into NWS, in line with S&P global
practice.
on June 15, 2007.
In accordance with the new S&P/ASX index methodology, Singapore Telecommunications Limited (SGT)
was considered for inclusion based upon the aggregate market value of its CHESS Depository Interests
(CDIs) traded on the ASX, on which basis it ranked within the top 200 eligible securities and will be added
to the S&P/ASX 200.
Figure 31: S&P/ASX 200 Quarterly Rebalance Additions and Deletions Projected Flows
Ticker
Additions
NWS AU
BLY AU
SGT AU
QGC AU
SMY AU
MCR AU
Deletions
API AU
KCN AU
ARQ AU
TWR AU
KIM AU
BDG AU
Name
News Corp
Boart Longyear Group
SingTel
Queensland Gas Co Ltd
Sally Malay Mining Ltd
Mincor Resources NL
Australian Pharm Industries
Kingsgate Consolidated Ltd
ARC Energy Ltd
Tower Ltd
Kimberley Diamond Co NL
Bendigo Mining Ltd
Index Action
USD
Price
(6/1)
S&P/ASX 50, 100, 200, 300

S&P/ASX 100, 200, 300
S&P/ASX 200, 300
S&P/ASX 200
S&P/ASX 200
S&P/ASX 200
23.70
1.81
2.33
1.99
3.85
3.53
0.00
0.00
0.00
0.00
0.00
0.00
54.68
25.86
8.60
6.98
6.76
6.44
$311,964,088
$120,605,860
$32,220,199
$20,342,797
$19,702,187
$18,785,926
S&P/ASX 200
S&P/ASX 200
S&P/ASX 200
S&P/ASX 200
S&P/ASX 200
S&P/ASX 200
1.98
4.41
1.29
1.75
0.60
0.28
3.50
3.44
2.78
2.56
2.35
1.33
0.00
0.00
0.00
0.00
0.00
0.00
($10,119,970) (5,116,048)
($9,941,262) (2,253,552)
($8,028,581) (6,218,240)
($7,403,824) (4,239,620)
($6,778,954) (11,375,840)
($3,841,518) (13,651,400)
Current Projected USD Value to

Wgt (bps) Wgt (bps)
Trade
Shares to
Trade
20D Avg
Volume
13,160,878 16,814,202 *
66,539,200
17,664,336
13,854,000 22,795,413 *
10,241,244
1,424,533
5,119,349
1,259,513
5,328,148
1,340,486
588,434
273,826
1,878,524
976,430
2,893,962
2,743,017
Liquidity
78%
377%
61%
719%
406%
397%
-869%
-823%
-331%
-434%
-393%
-498%
Note: We assume that index managers own 2.80% of the float-adjusted shares of each company in the S&P/ASX 200, 1.00% of the float-adjusted shares of each
company in the S&P/ASX 50, 0.88% of the float-adjusted shares of each company in the S&P/ASX 100, and 0.80% of the float-adjusted shares of each company in the
S&P/ASX 300.
Source: Lehman Brothers, S&P, Bloomberg, ASX
Background: On May 18, 2006, S&P and the Australian Stock Exchange announced the undertaking of a
consultation process with interested index stakeholders, focusing on the issue of foreign-domiciled
companies and the domestic suite of S&P/ASX indices. On February 27, 2007, S&P and ASX confirmed
the changes will become effective during the June 2007 rebalance.
The S&P/ASX index treatment of foreign-domiciled companies will be changed. Foreign companies on
the ASX will be considered for inclusion within the S&P/ASX indices subject to meeting capitalization
and liquidity hurdles. Foreign-domiciled companies will be considered for index inclusion based on
their ASX-quoted securities or based on the market value of CDIs quoted on ASX.
The S&P/ASX 50 index will no longer be included in the S&P Global 1200 index. It will continue as part
of the Australian index suite, however.
S&P will develop a new index that will consist of Australian- and New Zealand-domiciled companies
and exclude foreign-domiciled companies specifically for the S&P Global 1200 index.
20
212-526-9374
June 5, 2007
Topic: MSCI U.S. Names Involved in Russell Reconstitution -- Effective at the close on
June 22, 2007
The annual Russell
Reconstitution will
take place at the close
on June 22, 2007.
managers will need to trade $59.0 billion to rebalance their portfolios. A large slice of the MSCI Standard
U.S. securities will be involved in the reconstitution and we highlight the top names in Figure 32. A
spreadsheet with our full reconstitution projection list is available on Gabi Baezs analyst page on our
website at www.lehmanlive.com.
Figure 32: MSCI Standard U.S. Securities Involved in the Russell Reconstitution Projected Flows
Ticker
Sedol
Name
Largest Weight in MSCI World/Kokusai

XOM
2326618 EXXON MOBIL CORP
GE
2380498 GENERAL ELECTRIC CO
MSFT 2588173 MICROSOFT CORP
C
2297907 CITIGROUP
T
2831811 AT&T
BAC
2295677 BANK OF AMERICA CORP
PG
2704407 PROCTER & GAMBLE CO
PFE
2684703 PFIZER
JNJ
2475833 JOHNSON & JOHNSON
CVX
2838555 CHEVRON CORP
JPM
2190385 JPMORGAN CHASE & CO
CSCO 2198163 CISCO SYSTEMS
AIG
2027342 AMERICAN INT'L GROUP
IBM
2005973 IBM CORP
MO
2692632 ALTRIA GRP(PHILIP MORRIS
Most Illiquid Buys
ACN
2763958 ACCENTURE A
AXS
2677606 AXIS CAPITAL HOLDINGS
ACE
2008853 ACE
TYC
2038010 TYCO INTERNATIONAL
CCL
2523044 CARNIVAL CORP
PRE
2671932 PARTNERRE
RE
2556868 EVEREST RE GROUP
RNR
2728429 RENAISSANCERE HOLDINGS
XL
2283401 XL CAPITAL
CBE
2949435 COOPER INDUSTRIES A
SLB
2779201 SCHLUMBERGER
BG
2788713 BUNGE
IR
2831167 INGERSOLL-RAND CO A
RCL
2754907 ROYAL CARIBBEAN CRUISES
WFT
2962421 WEATHERFORD INT'L
Most Illiquid Sells
UB
2165145 UNIONBANCAL CORP
LBTYA B018V87 LIBERTY GLOBAL A
ASBC 2055718 ASSOCIATED BANC-CORP
TMK
2896713 TORCHMARK CORP
LEA
2509754 LEAR CORP
THI
B108FL6 TIM HORTONS
PLL
2668804 PALL CORP
RF
B01R311 REGIONS FINANCIAL (NEW)
TRV
2769503 TRAVELERS COS
FRE
2334150 FREDDIE MAC
WYN
B198391 WYNDHAM WORLDWIDE
BBT
2830904 BB&T CORP
EFX
2319146 EQUIFAX
EMR
2313405 EMERSON ELECTRIC CO
PFG
2803014 PRINCIPAL FINANCIAL GRP
World
Wgt
Kokusai
Wgt
Projected Russell
Category
Projected
Russell
Trade Value
(MM USD)
Projected
Russell
Shares to
Trade
GICS Sector
USD Price
(31May07)
Energy
Industrials
Info Tech
Financials
Telecom Svcs
Financials
Cons. Staples
Health Care
Health Care
Energy
Financials
Info Tech
Financials
Info Tech
Cons. Staples
83.17
37.58
30.67
54.49
41.34
50.71
63.55
27.49
63.27
81.49
51.83
26.92
72.34
106.6
71.1
1.6428%
1.3238%
0.9212%
0.9039%
0.8695%
0.7719%
0.6789%
0.6756%
0.6267%
0.6170%
0.6078%
0.5555%
0.5459%
0.5445%
0.5127%
1.8294%
1.4742%
1.0259%
1.0066%
0.9683%
0.8595%
0.7560%
0.7524%
0.6979%
0.6871%
0.6769%
0.6186%
0.6079%
0.6064%
0.5709%
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
($1,030)
($176)
($144)
($381)
($501)
($521)
($689)
($564)
($28)
($426)
($333)
($188)
($165)
($451)
($179)
(12,379,085)
(4,678,684)
(4,701,839)
(6,991,506)
(12,128,171)
(10,280,292)
(10,837,381)
(20,529,429)
(437,973)
(5,226,975)
(6,428,425)
(6,995,521)
(2,285,929)
(4,228,276)
(2,520,444)
Info Tech
Financials
Financials
Industrials
Cons. Disc.
Financials
Financials
Financials
Financials
Industrials
Energy
Cons. Staples
Industrials
Cons. Disc.
Energy
40.94
39.57
61.57
33.36
50.44
76.8
107.23
58.69
81.56
53.58
77.87
78.12
51.33
43.48
54.34
0.0827%
0.0178%
0.0685%
0.2271%
0.0753%
0.0148%
0.0236%
0.0137%
0.0508%
0.0340%
0.3213%
0.0313%
0.0540%
0.0207%
0.0642%
0.0921%
0.0198%
0.0763%
0.2529%
0.0839%
0.0164%
0.0263%
0.0152%
0.0566%
0.0378%
0.3578%
0.0349%
0.0601%
0.0231%
0.0714%
new to r1--Non-US Incorp.

$888
$218
$759
$2,481
$806
$173
$273
$154
$536
$342
$3,144
$380
$581
$233
$631
21,700,627
5,511,987
12,326,099
74,363,397
15,982,858
2,247,068
2,545,278
2,620,090
6,569,853
6,389,014
40,374,594
4,863,661
11,314,247
5,362,411
11,613,333
1085%
1040%
960%
784%
690%
660%
651%
570%
566%
515%
506%
447%
406%
368%
284%
Financials
Cons. Disc.
Financials
Financials
Cons. Disc.
Cons. Disc.
Industrials
Financials
Financials
Financials
Cons. Disc.
Financials
Industrials
Industrials
Financials
61.38
38.4
33.01
70.11
35.67
31.13
44.75
35.67
54.17
66.79
37.2
42.11
42.03
48.45
60.8
0.0118%
0.0256%
0.0138%
0.0234%
0.0083%
0.0205%
0.0186%
0.0887%
0.1270%
0.1585%
0.0255%
0.0792%
0.0212%
0.1314%
0.0562%
0.0132%
0.0286%
0.0154%
0.0261%
0.0093%
0.0229%
0.0207%
0.0988%
0.1414%
0.1765%
0.0284%
0.0882%
0.0236%
0.1463%
0.0626%
stay in r1
stay in r1
stay in r1
stay in r1
stay in r2
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
stay in r1
(304,520)
(1,424,716)
(385,800)
(304,474)
(703,247)
(308,166)
(545,884)
(1,919,172)
(2,058,813)
(2,016,629)
(613,290)
(1,063,187)
(994,737)
(1,844,999)
(788,657)
-143%
-111%
-107%
-89%
-89%
-87%
-82%
-75%
-74%
-71%
-71%
-70%
-70%
-67%
-66%
($19)
($55)
($13)
($21)
($25)
($10)
($24)
($68)
($112)
($135)
($23)
($45)
($42)
($89)
($48)
Liquidity
-61%
-16%
-8%
-28%
-60%
-70%
-93%
-60%
-3%
-55%
-59%
-13%
-22%
-65%
-26%
Source:
21
June 5, 2007
Monthly Performance Data

Figure 33: MSCI Developed Market Country and Region Index Performance
Weights
EAFE
Wgt
Developed Market Regions
EAFE
100.00
World
-Europe
69.78
Pan-Euro
-Kokusai
78.81
Pacific
30.22
North America
-Asia Pacific
Australia
6.11
Hong Kong
1.70
Japan
21.19
New Zealand
0.16
Singapore
1.07
Europe
Austria
0.68
Belgium
1.24
Denmark
0.88
Finland
1.64
France
10.33
Germany
8.23
Greece
0.70
Ireland
0.87
Italy
3.87
Netherlands
3.56
Norway
0.99
Portugal
0.38
Spain
4.11
Sweden
2.60
Switzerland
6.77
United Kingdom
22.93
North America
Canada
-United States
--
Local Currency Return

Net Dividends Reinvested
U.S. Dollar Return


Price Return
U.S. Dollar Return

Price Return
World
Wgt
One
Month
Three
Month
YTD
63 Day
Vol
One
Month
Three
Month
YTD
63 Day
Vol
One
Month
Three
Month
YTD
63 Day
Vol
One
Month
Three
Month
YTD
63 Day
Vol
47.99
100.00
33.48
-89.83
14.50
52.01
3.20
3.37
3.18
3.22
3.35
3.25
3.54
8.31
8.60
10.80
10.80
9.56
3.05
8.88
9.74
9.24
10.99
10.82
9.73
7.04
8.82
10.96
8.74
11.53
11.55
8.86
13.91
9.89
1.75
2.80
1.76
1.81
2.94
1.74
3.79
8.98
9.30
12.26
12.24
10.70
2.03
9.59
10.61
10.02
12.51
12.33
10.85
6.41
9.47
10.96
8.72
12.59
12.59
9.23
12.89
9.90
2.68
3.04
2.49
2.52
2.98
3.11
3.38
6.99
7.79
9.18
9.15
8.72
2.37
8.55
8.24
8.22
9.18
8.98
8.66
6.23
8.23
11.01
8.77
11.55
11.57
8.87
13.99
9.90
1.24
2.47
1.09
1.12
2.57
1.60
3.63
7.66
8.48
10.62
10.58
9.85
1.36
9.26
9.10
8.98
10.69
10.46
9.77
5.60
8.88
11.01
8.76
12.62
12.62
9.24
12.97
9.91
2.93
0.81
10.17
0.07
0.52
2.04
1.80
3.60
3.59
5.59
7.90
5.90
1.10
6.98
15.48
11.86
5.30
5.46
5.49
20.36
13.84
14.09
15.17
9.48
18.79
1.47
1.94
1.63
2.81
4.92
13.34
5.92
-1.66
12.62
15.51
17.45
4.85
3.16
10.31
20.74
15.84
14.11
14.18
13.50
19.70
1.79
1.00
3.57
3.12
4.88
7.27
4.34
0.52
5.63
14.00
10.72
3.73
4.83
3.66
18.71
13.75
14.25
15.28
9.44
18.82
1.21
1.14
1.61
2.34
4.22
12.67
4.36
-2.23
11.19
14.02
16.26
3.29
2.54
8.40
19.08
15.76
14.27
14.29
13.37
19.73
0.32
0.60
0.42
0.79
4.96
3.95
0.34
0.42
1.86
1.71
0.47
0.18
1.97
1.25
3.25
11.00
2.89
1.51
3.57
7.64
3.58
5.65
5.77
6.12
0.10
0.88
3.90
9.23
7.16
1.72
0.38
2.82
11.53
7.54
12.54
19.50
11.76
16.84
10.53
6.41
6.43
14.30
12.16
14.46
8.19
14.68
8.96
8.71
9.89
7.01
15.58
24.91
11.28
19.35
12.84
4.68
5.03
14.55
12.63
19.00
9.50
15.42
8.87
8.25
13.73
14.03
12.78
15.29
12.19
13.55
15.50
17.26
11.97
13.45
14.59
10.14
15.10
16.71
11.94
11.10
1.45
0.09
2.15
6.14
2.13
4.17
4.29
4.64
-1.30
-0.53
2.37
7.70
5.66
-1.29
-1.16
1.70
13.61
9.55
14.69
21.74
13.85
19.03
12.60
8.39
8.42
16.43
14.14
16.60
10.21
16.41
8.58
9.73
12.14
9.20
18.03
27.47
13.56
21.79
15.15
6.82
7.18
16.89
16.18
21.44
11.74
14.26
8.44
9.41
14.49
14.79
13.70
15.98
13.18
14.75
16.68
17.76
13.27
14.53
17.12
11.22
15.59
19.34
12.16
12.28
2.44
0.40
3.49
6.80
2.28
4.54
5.62
6.06
-1.40
0.61
2.66
7.57
6.61
1.44
0.13
2.45
10.93
5.51
11.41
16.71
10.22
14.77
9.57
5.44
4.25
12.51
9.96
12.27
7.38
12.43
7.56
7.27
9.30
4.94
14.42
21.93
9.71
17.02
11.86
3.72
2.88
12.76
10.42
16.72
8.11
13.15
7.47
6.46
13.19
14.39
12.72
15.17
12.25
13.66
15.53
17.89
12.67
13.55
14.67
10.38
15.07
16.63
11.94
11.14
1.00
-1.01
2.08
5.31
0.85
3.08
4.14
4.57
-2.78
-0.80
1.15
6.07
5.11
-1.55
-1.40
1.34
13.00
7.49
13.54
18.89
12.28
16.92
11.62
7.41
6.20
14.61
11.90
14.37
9.38
14.12
7.19
8.27
11.54
7.09
16.85
24.42
11.96
19.42
14.15
5.85
4.99
15.07
13.90
19.11
10.32
12.01
7.06
7.60
14.13
15.14
13.63
15.86
13.28
14.80
16.63
18.35
14.07
14.70
17.20
11.26
15.58
19.12
12.20
12.27
3.80
48.22
4.99
3.43
7.82
8.96
9.08
8.80
11.46
9.98
8.53
3.43
18.25
8.96
18.73
8.80
11.55
9.98
4.84
3.28
7.40
8.64
8.43
8.22
11.48
9.99
8.37
3.28
17.79
8.64
18.03
8.22
11.58
9.99
22
June 5, 2007
Figure 34: MSCI Emerging Market Country and Region Index Performance
Weights
EMF
Wgt
ACWIxUS
Wgt
Emerging Market Regions

ACWI
NA
NA
ACWI ex-US
NA
100.00
EMF
100.00
15.31
Asia
52.54
8.05
EMEA
26.12
4.00
Latin America
21.34
3.27
Asia
China
11.68
1.79
India
6.66
1.02
Indonesia
1.60
0.24
Malaysia
2.95
0.45
Pakistan
0.24
0.04
Philippines
0.56
0.09
South Korea
15.89
2.43
Taiwan
11.52
1.76
Thailand
1.45
0.22
Czech Republic
0.81
0.12
Egypt
0.84
0.13
Hungary
1.02
0.16
Israel - Domestic
2.18
0.33
Israel - Non Domes 0.28
0.04
Jordan
0.13
0.02
Morocco
0.34
0.05
Poland
1.79
0.27
Russia
8.99
1.38
South Africa
8.09
1.24
Turkey
1.65
0.25
Latin America
Argentina
0.76
0.12
Brazil
11.64
1.78
Chile
1.63
0.25
Colombia
0.30
0.05
Mexico
6.40
0.98
Peru
0.61
0.09

U.S. Dollar Return


Price Return
U.S. Dollar Return

Price Return
One
Month
Three
Month
YTD
63 Day
Vol
One
Month
Three
Month
YTD
63 Day
Vol
One
Month
Three
Month
YTD
63 Day
Vol
One
Month
Three
Month
YTD
63 Day
Vol
3.43
3.42
4.01
5.86
-1.44
6.83
8.81
8.69
11.08
12.11
4.99
17.00
9.31
9.74
9.98
10.55
4.43
16.46
8.75
10.31
10.88
12.73
12.31
17.86
2.98
2.63
4.95
6.53
-2.03
10.60
9.70
10.28
14.18
14.01
6.99
24.90
10.21
11.34
12.28
11.82
5.27
23.61
8.84
10.50
12.74
13.47
15.31
20.09
3.09
2.95
3.69
5.62
-1.84
6.38
7.99
7.49
10.23
11.46
4.02
15.84
8.28
8.35
8.91
9.65
3.31
15.03
8.78
10.35
10.86
12.66
12.30
17.88
2.65
2.16
4.62
6.29
-2.43
10.13
8.88
9.07
13.32
13.35
6.01
23.66
9.17
9.94
11.19
10.90
4.13
22.09
8.87
10.55
12.72
13.41
15.29
20.11
7.39
5.43
1.55
2.90
4.65
7.71
8.02
3.06
5.87
15.85
13.42
16.46
14.35
16.52
14.32
16.54
1.67
11.32
9.49
6.31
8.69
25.95
32.68
17.14
17.53
1.76
11.51
21.13
21.69
18.29
16.54
17.31
20.60
12.82
11.92
12.29
7.53
6.95
4.49
3.61
4.48
10.80
8.25
3.92
6.30
15.88
23.67
20.47
17.87
16.40
19.88
18.19
1.40
9.12
9.02
15.88
10.74
30.75
32.98
24.05
17.72
0.36
16.39
21.18
25.14
21.18
17.35
17.50
22.15
14.03
12.26
21.56
6.58
5.39
1.50
2.47
4.65
7.52
7.96
3.05
5.71
14.66
13.04
16.39
13.13
15.36
13.73
15.84
1.67
8.87
8.36
5.90
8.63
24.44
31.06
16.34
15.95
1.75
8.94
21.10
21.68
18.29
16.54
17.22
20.64
12.73
11.92
11.99
6.72
6.91
4.45
3.18
4.48
10.61
8.19
3.91
6.14
14.69
23.26
20.40
16.61
15.25
19.26
17.48
1.40
6.72
7.90
15.44
10.67
29.18
31.37
23.20
16.14
0.35
13.70
21.16
25.12
21.17
17.35
17.41
22.18
13.94
12.26
21.35
3.16
6.30
6.30
4.80
-0.63
-3.93
-1.30
1.84
-5.64
-2.20
4.69
18.82
10.17
16.56
11.71
1.88
-11.08
12.25
13.36
-4.72
8.91
13.78
18.41
13.92
9.41
20.95
2.45
3.19
28.76
12.80
-11.38
13.13
22.32
14.62
11.40
15.45
10.82
12.81
11.31
21.74
19.06
21.46
13.84
22.08
1.24
6.17
3.85
4.00
-0.63
-3.87
-2.33
-0.34
-5.80
-3.29
8.30
20.79
10.24
21.22
15.91
1.88
-11.11
14.04
18.41
-4.53
11.31
21.95
17.53
14.31
12.36
25.50
2.45
3.24
30.91
15.53
-11.12
12.09
31.29
15.16
11.52
19.25
12.95
12.81
11.31
22.26
21.95
21.47
20.85
28.46
2.73
5.46
4.12
4.65
-0.63
-4.51
-2.69
1.49
-7.07
-2.22
3.44
17.32
8.34
14.17
11.15
1.88
-13.37
10.44
12.83
-5.16
7.66
11.19
16.92
12.02
6.41
19.25
2.45
0.40
26.69
12.28
-11.79
11.63
19.53
14.29
11.40
15.20
10.82
12.81
11.53
21.43
18.92
21.64
13.73
21.78
0.82
5.34
1.73
3.85
-0.63
-4.45
-3.71
-0.68
-7.22
-3.31
7.01
19.27
8.41
18.74
15.33
1.88
-13.39
12.20
17.86
-4.97
10.04
19.17
16.05
12.41
9.28
23.74
2.45
0.46
28.80
15.00
-11.54
10.60
28.30
14.88
11.51
18.90
12.91
12.81
11.53
21.89
21.85
21.65
20.75
28.05
7.24
6.12
2.15
-2.37
9.92
6.68
10.93
17.22
15.36
0.19
17.82
27.59
8.57
13.94
20.20
-9.71
19.65
53.58
21.66
21.81
15.81
15.15
18.17
21.37
7.58
11.74
2.13
7.99
11.77
6.63
11.76
28.39
18.41
17.44
22.38
27.80
8.12
26.03
21.77
6.24
20.56
53.89
21.71
25.24
17.15
18.95
19.26
21.45
7.09
5.95
1.21
-2.39
9.07
5.89
10.65
16.03
13.90
-0.38
16.71
25.49
8.29
12.41
18.45
-10.28
18.47
49.33
21.69
21.80
16.03
15.13
18.25
21.55
7.43
11.56
1.19
7.96
10.90
5.84
11.47
27.09
16.91
16.78
21.24
25.70
7.84
24.33
20.01
5.57
19.36
49.62
21.73
25.23
17.37
18.96
19.33
21.63
23
212-526-9374
June 5, 2007
10
9
8
7
6
5
4
3
2
1
0
Italy
Switzerland
Netherlands
Belgium
Sweden
Hong Kong
Australia
United Kingdom
Austria
United States
Denmark
France
New Zealand
Japan
Norway
Canada
Singapore
Germany
Greece
Ireland
Spain
Finland
1-Month Country Return (Local Currency)
Portugal
Monthly Ret (%)
Figure 35: MSCI Developed Market Country Performance
Figure 36: MSCI Emerging Market Country Performance
12
10
1-Month Country Return (Local Currency)
Monthly Ret (%)
8
6
4
2
0
-2
-4
-6
Russia
Jordan
Colombia
South Africa
Morocco
Israel - Non Dom
Indonesia
Poland
Chile
Malaysia
Taiwan
Czech Republic
Pakistan
Turkey
Israel - Dom
India
Thailand
Brazil
Egypt
Hungary
Peru
Argentina
China
Philippines
South Korea
Mexico
-8
Note: Chart is sorted by sector returns (net dividends reinvested)

24
212-526-9374
June 5, 2007
Figure 37: MSCI Developed and Emerging Market Sector Performance

U.S. Dollar Return
Net Dividends Reinvested Net Dividends Reinvested
Sector
MSCI World
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecom Services
Utilities
MSCI EAFE
Consumer Staples
Energy
Financials
Health Care
Industrials
Materials
Telecom Services
Utilities
MSCI EMF
Consumer Staples
Energy
Financials
Health Care
Industrials
Materials
Telecom Services
Utilities

Price Return
Weight
One
Month
Three
Month
YTD
One
Month
Three
Month
YTD
One
Month
Three
Month
YTD
One
Month
Three
Month
YTD
11.20
8.09
9.33
25.58
8.81
11.16
10.31
6.45
4.66
4.40
3.12
1.19
6.25
2.07
0.65
4.62
3.73
7.04
6.79
2.84
6.16
7.67
16.47
5.59
5.63
11.38
9.39
12.45
10.12
9.60
7.47
9.01
11.90
5.36
6.55
14.73
7.99
18.07
12.83
11.91
2.36
0.58
6.18
1.49
0.14
3.85
3.32
6.39
6.07
2.04
6.26
8.19
18.29
6.65
5.73
11.66
9.38
14.10
11.06
10.20
7.71
9.62
13.63
6.46
6.70
15.12
8.01
19.87
13.88
12.67
2.90
0.99
5.78
1.53
0.47
4.40
3.56
6.85
6.39
2.34
5.50
6.90
15.86
4.35
5.16
10.76
9.08
11.59
9.06
8.54
6.72
8.08
10.93
3.91
5.77
13.85
7.60
16.96
11.48
10.54
2.15
0.38
5.72
0.96
-0.04
3.63
3.16
6.20
5.67
1.54
5.61
7.41
17.67
5.39
5.26
11.04
9.07
13.23
9.99
9.13
6.96
8.68
12.65
5.00
5.92
14.24
7.62
18.74
12.53
11.29
11.86
7.94
7.03
29.38
6.52
11.88
5.39
9.06
5.46
5.49
3.52
1.04
5.30
2.15
-1.07
4.20
2.96
7.16
4.81
4.22
7.39
8.97
12.56
6.08
1.62
11.68
8.79
14.00
6.86
9.74
9.58
11.60
6.28
7.01
2.69
17.83
6.22
18.66
8.94
10.24
1.95
-0.31
4.01
0.82
-2.48
2.58
1.18
5.70
3.37
2.82
7.35
9.83
14.07
7.15
1.81
11.84
8.14
15.02
7.92
10.61
9.81
12.66
7.98
8.24
3.01
18.16
5.76
19.94
10.21
11.36
3.16
0.70
4.40
1.38
-1.25
3.90
2.59
6.95
4.12
3.56
6.28
7.82
11.49
4.21
0.89
10.71
7.97
12.87
5.45
8.32
8.35
10.29
4.72
5.05
1.56
16.64
5.37
17.30
7.43
8.64
1.60
-0.65
3.13
0.06
-2.66
2.28
0.82
5.50
2.69
2.17
6.24
8.68
12.98
5.26
1.08
10.87
7.32
13.88
6.50
9.18
8.58
11.34
6.39
6.25
1.88
16.97
4.91
18.56
8.69
9.74
6.18
5.47
14.87
21.16
1.85
9.12
12.28
14.54
10.93
3.60
4.18
4.47
2.25
2.59
3.01
12.31
0.64
5.32
4.67
4.64
7.20
14.98
6.03
9.89
7.25
27.32
0.90
16.52
14.17
15.74
10.35
12.25
-4.14
7.62
11.73
34.31
-1.53
24.85
14.52
13.85
4.97
6.01
3.17
3.37
2.63
13.12
1.30
6.86
5.51
5.91
10.49
19.61
8.70
13.09
11.89
30.75
2.16
20.86
16.98
19.75
12.31
15.48
-1.71
10.18
16.01
36.88
-1.28
28.41
16.03
17.50
3.81
4.18
1.96
2.23
2.89
11.96
0.62
4.96
4.08
4.12
6.68
14.10
5.21
8.75
6.98
26.44
0.87
15.41
13.20
13.91
9.50
11.02
-5.04
6.38
11.30
33.01
-1.75
23.29
13.22
11.97
4.60
5.72
2.88
3.01
2.51
12.77
1.29
6.49
4.91
5.39
9.95
18.69
7.86
11.91
11.62
29.85
2.13
19.71
15.99
17.87
11.44
14.22
-2.63
8.91
15.57
35.56
-1.51
26.81
14.71
15.56
MSCI World
MSCI EAFE
Index Contribution
Health Care
Cons. Stap.
Cons. Stap.
Sector Return (Price)

Energy
Sector Return (Net Divs

Reinv)
Financials
Info Tech
Health Care
Cons. Discr.
Cons. Discr.
Cons. Discr.
Info Tech
Industrials
Cons. Stap.
Industrials
Utilities
Utilities
Telecom Svcs
Energy
Telecom Svcs
Telecom Svcs
Energy
Materials
Materials
Materials
Industrials
2%
3%
4%
5%
6%
7%
8%
Index Contribution
-2%
0%
2%
4%
Index Contribution
6%

Reinv)
Financials
Utilities
1%
Index Contribution
Info Tech

Reinv)
Financials
MSCI EMF
Index Contribution
Health Care
0%
U.S. Dollar Return

Price Return
8%
0%
2%
4%
6%
8%
10%
12%
14%
Index Contribution
Note: Chart is sorted by sector returns (net dividends reinvested)

25
212-526-9374
June 5, 2007
Figure 38: MSCI Developed Market Country and Region Financial Ratios
May 2007
Price to
Book
Value
Developed Market Regions
EAFE
2.51
World
2.76
Europe
2.62
Pan-Euro
2.60
Kokusai
2.86
Pacific
2.28
North America
3.05
Asia Pacific
Australia
3.19
Hong Kong
1.94
Japan
2.12
New Zealand
3.13
Singapore
2.47
Europe
Austria
2.33
Belgium
2.06
Denmark
3.33
Finland
3.60
France
2.30
Germany
2.15
Greece
3.44
Ireland
3.10
Italy
1.99
Netherlands
2.53
Norway
2.81
Portugal
3.23
Spain
3.16
Sweden
3.28
Switzerland
3.28
United Kingdom
2.79
North America
Canada
2.91
United States
3.06
April 2007
Price to
Cash
Earnings
Price to
Earnings
Return on
Equity
Diviend
Yield
Price to
Book
Value
Price to
Cash
Earnings
Price to
Earnings
Return on
Equity
Diviend
Yield
10.54
11.50
10.43
10.17
11.71
10.77
12.46
16.38
17.33
15.30
14.93
17.04
19.57
18.31
15.30
15.93
17.13
17.42
16.78
11.64
16.63
2.47
2.11
2.77
2.86
2.21
1.77
1.77
2.46
2.69
2.59
2.57
2.79
2.21
2.95
10.22
11.11
10.09
9.84
11.30
10.50
12.01
16.02
16.85
15.00
14.64
16.57
19.00
17.72
15.38
15.97
17.29
17.55
16.84
11.61
16.63
2.49
2.14
2.81
2.90
2.25
1.76
1.81
13.41
14.02
10.10
9.99
14.04
17.24
19.48
20.43
16.83
18.71
18.47
9.97
10.39
18.60
13.18
3.45
2.60
1.20
4.17
2.09
3.13
1.93
2.05
3.04
2.36
13.02
13.81
9.85
9.67
13.54
16.95
19.36
19.73
16.32
18.00
18.47
9.97
10.38
18.60
13.08
3.47
2.58
1.17
4.48
2.15
11.16
9.17
16.79
12.51
9.90
9.24
10.18
15.34
7.36
11.74
8.27
7.92
8.79
12.76
16.75
10.39
19.74
12.41
20.85
18.43
15.56
16.62
20.93
16.91
15.28
15.28
13.89
17.47
15.82
16.17
17.94
13.71
11.81
16.62
15.99
19.52
14.79
12.93
16.41
18.32
13.02
16.56
20.20
18.46
19.97
20.27
18.30
20.32
1.40
3.22
1.34
2.76
2.63
2.41
2.49
2.22
3.82
2.73
2.25
2.78
3.13
2.69
1.99
3.09
2.26
2.10
3.30
3.37
2.33
2.08
3.22
2.92
2.02
2.58
2.74
3.06
2.96
3.27
3.29
2.75
10.89
9.85
16.62
11.68
9.36
8.77
9.92
13.91
6.98
11.50
7.99
7.45
8.26
12.71
16.86
10.13
19.29
12.83
21.31
17.25
15.16
15.76
18.90
15.93
15.06
15.16
13.54
15.56
14.84
16.26
17.99
13.61
11.73
16.37
15.50
19.52
15.39
13.21
17.01
18.34
13.42
17.03
20.22
19.67
19.97
20.09
18.30
20.20
1.32
3.22
1.38
2.94
2.60
2.37
2.54
2.33
3.82
2.75
2.26
2.95
3.33
2.66
1.96
3.18
10.73
12.60
17.35
18.39
16.79
16.61
1.97
1.76
2.78
2.96
10.12
12.16
16.64
17.80
16.70
16.62
2.01
1.80
26
212-526-9374
June 5, 2007
Figure 39: MSCI Emerging Market Country and Region Financial Ratios
May 2007
Price to
Price to
Cash
Book
Value
Earnings
Emerging Market Regions
ACWI
2.75
11.36
ACWI ex-US
2.54
10.47
EMF
2.60
10.07
Asia
2.46
10.11
EMEA
2.63
10.04
Latin America
3.00
10.00
Asia
China
3.18
10.75
India
5.28
16.82
Indonesia
4.28
11.37
Malaysia
2.57
12.71
Pakistan
3.34
9.39
Philippines
2.83
9.84
South Korea
1.91
9.04
Taiwan
2.06
9.09
Thailand
2.03
6.85
Czech Republic
2.92
11.42
Egypt
4.89
13.24
Hungary
2.77
5.99
Israel - Domestic
2.53
14.56
2.66
23.42
Israel - Non Domes
Jordan
2.08
10.25
Morocco
6.27
17.78
Poland
2.65
7.04
Russia
2.13
8.61
South Africa
3.42
12.37
Turkey
2.09
8.14
Latin America
Argentina
3.41
9.63
Brazil
2.70
8.61
Chile
2.60
13.92
Colombia
1.51
25.81
Mexico
3.93
11.97
Peru
5.38
11.29
April 2007
Price to
Earnings
Return on
Equity
Diviend
Yield
Price to
Book
Value
Price to
Cash
Earnings
Price to
Earnings
Return on
Equity
Diviend
Yield
17.24
16.43
16.33
17.52
14.69
15.86
15.93
15.48
15.93
14.04
17.87
18.93
2.11
2.39
2.17
2.16
2.12
2.26
2.68
2.49
2.56
2.38
2.73
2.83
10.98
10.13
9.72
9.57
10.27
9.44
16.76
16.02
15.79
16.74
14.87
14.92
15.99
15.57
16.19
14.22
18.38
18.97
2.15
2.42
2.20
2.22
2.08
2.32
20.06
23.01
18.32
19.28
13.40
17.16
14.57
18.72
11.12
15.84
22.93
23.36
13.35
24.91
16.49
13.09
11.02
18.22
1.70
1.04
1.98
2.19
4.65
2.03
1.78
3.51
3.87
3.03
5.01
4.21
2.52
3.26
2.70
1.78
2.14
1.92
10.09
16.21
11.35
12.68
9.12
9.36
8.29
8.81
6.38
18.88
21.84
17.98
19.31
12.74
16.32
13.27
19.51
10.52
16.03
22.93
23.40
13.05
25.61
16.52
13.43
10.99
18.22
1.63
1.07
2.05
2.18
4.86
2.16
1.93
3.52
4.09
23.15
19.91
11.26
17.93
26.54
19.36
31.50
16.86
12.45
15.89
13.44
12.61
24.55
24.57
14.12
10.02
10.74
19.92
15.72
17.11
21.53
15.58
2.76
2.68
2.23
2.61
0.00
2.70
2.89
2.93
1.26
2.50
2.92
2.85
4.63
2.66
2.44
2.67
2.18
6.45
2.61
2.29
3.67
2.11
11.07
12.54
5.84
14.42
22.11
10.90
18.49
6.87
9.04
12.90
7.77
22.55
18.88
10.82
17.97
24.95
20.27
32.37
16.61
13.01
16.84
10.84
12.62
24.55
24.57
13.59
10.72
10.74
19.92
15.72
17.62
21.77
19.45
3.17
2.47
2.40
2.80
0.00
2.98
2.64
3.80
1.08
2.42
2.61
14.79
14.16
24.90
20.86
18.42
13.68
23.05
19.04
10.43
7.25
21.35
39.32
0.95
2.81
1.88
2.81
1.32
4.17
3.17
2.54
2.57
1.55
3.61
5.08
8.89
8.19
13.74
25.03
10.96
10.76
13.54
13.35
24.60
21.37
16.89
12.92
23.41
19.06
10.43
7.25
21.35
39.32
0.95
3.05
1.52
2.74
1.18
4.33
27
212-526-9374
June 5, 2007
Liquidity Analysis
Figure 40: MSCI World and MSCI EAFE Liquidity by Country
Country
Australia
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Greece
Hong Kong
Ireland
Italy
Japan
Netherlands
New Zealand
Norway
Portugal
Singapore
Spain
Sweden
Switzerland
United Kingdom
United States
MSCI EAFE
MSCI World
Stocks
Apr-07 May-07
87
87
17
17
20
20
111
110
22
22
23
23
62
64
52
52
18
16
43
43
16
15
35
33
382
382
26
25
12
10
22
23
11
11
39
37
30
31
47
46
35
35
158
154
621
628
1157
1146
1889
1884
Daily Total Avg $Volume

Apr-07
$4,105,770
$498,280
$745,114
$3,257,205
$834,576
$1,756,767
$9,439,683
$12,718,893
$344,535
$975,156
$446,896
$6,808,127
$22,392,911
$4,586,073
$68,913
$1,440,223
$372,997
$656,116
$8,209,350
$3,153,921
$4,337,550
$13,868,548
$108,718,549
$97,760,400
$209,736,155
Daily Wgtd Avg $Volume
May-07
%Ch
$4,280,273 4%
$485,202 -3%
$682,836 -8%
$4,313,790 32%
$898,878 8%
$2,017,118 15%
$8,615,464 -9%
$11,154,213 -12%
$309,879 -10%
$983,871 1%
$478,774 7%
$9,056,428 33%
$20,944,547 -6%
$3,506,050 -24%
$81,075 18%
$1,812,659 26%
$508,946 36%
$693,832 6%
$7,955,989 -3%
$3,031,705 -4%
$4,218,854 -3%
$12,540,840 -10%
$115,048,209 6%
$94,257,433 -4%
$213,619,432 2%
Apr-07
$143,506
$40,191
$75,149
$63,098
$76,187
$393,649
$339,734
$537,048
$39,677
$42,098
$59,419
$530,869
$187,541
$454,978
$14,639
$131,389
$64,311
$37,397
$917,679
$188,279
$381,402
$294,683
$537,845
$310,074
$410,825
May-07
$129,721
$38,832
$69,379
$78,827
$82,581
$532,684
$304,436
$549,209
$35,637
$39,732
$62,547
$787,818
$180,614
$346,488
$17,895
$168,289
$84,643
$44,118
$955,410
$158,752
$346,647
$262,772
$529,834
$307,008
$405,323
%Ch
-10%
-3%
-8%
25%
8%
35%
-10%
2%
-10%
-6%
5%
48%
-4%
-24%
22%
28%
32%
18%
4%
-16%
-9%
-11%
-1%
-1%
-1%
Index Wgtd Avg Bid/Ask Spread

Apr-07
9.77
13.08
8.24
13.28
19.33
8.78
6.33
5.45
12.56
13.97
36.08
7.39
21.95
6.42
42.76
17.39
21.02
61.81
6.98
22.19
7.95
9.50
3.72
19.46
15.13
May-07
9.29
11.96
8.34
13.27
18.00
8.43
5.66
5.91
11.51
14.11
29.68
7.84
21.95
6.39
36.26
19.47
19.69
57.20
7.24
22.41
8.03
8.93
3.32
18.30
14.09
%Ch
-5%
-9%
1%
0%
-7%
-4%
-11%
8%
-8%
1%
-18%
6%
0%
0%
-15%
12%
-6%
-7%
4%
1%
1%
-6%
-11%
-6%
-7%
Figure 41: MSCI Emerging Markets Free Liquidity by Country

Country
Argentina
Brazil
Chile
China
Colombia
Czech Republic
Egypt
Hungary
Indonesia
Israel - Domestic
India
Jordan
South Korea
Morocco
Mexico
Malaysia
Peru
Philippines
Pakistan
Poland
Russia
Thailand
Turkey
Taiwan
Israel - Non Domestic
South Africa
MSCI EMF
Stocks
Apr-07 May-07
12
11
55
52
27
27
84
87
6
6
7
7
21
19
4
4
24
24
24
21
68
62
14
12
93
98
12
12
25
25
58
56
5
5
16
17
15
14
22
25
24
24
41
34
33
30
104
111
9
9
49
48
852
844
Daily Total Avg $Volume

Apr-07
$12,417
$1,233,075
$104,851
$2,502,448
$7,651
$166,442
$61,619
$146,093
$147,821
$209,728
$870,715
$18,827
$2,253,493
$21,870
$373,793
$316,469
$5,297
$47,788
$144,569
$181,998
$338,506
$278,881
$529,443
$1,719,230
$76,312
$991,593
$12,760,929
May-07
$11,623
$1,516,461
$196,713
$3,427,288
$6,085
$158,526
$58,830
$178,634
$176,446
$254,995
$1,175,477
$10,146
$4,253,926
$51,424
$445,794
$338,506
$15,939
$70,910
$198,612
$158,254
$317,360
$281,129
$461,720
$1,720,463
$53,819
$904,646
$16,443,877
Daily Wgtd Avg $Volume

%Ch
-6%
23%
88%
37%
-20%
-5%
-5%
22%
19%
22%
35%
-46%
89%
135%
19%
7%
201%
48%
37%
-13%
-6%
1%
-13%
0%
-29%
-9%
29%
Apr-07
$2,543
$81,838
$5,948
$137,158
$1,262
$44,902
$5,536
$53,152
$9,946
$18,759
$34,017
$3,912
$88,452
$2,557
$41,874
$10,497
$644
$5,007
$14,492
$17,903
$10,366
$13,354
$29,675
na
na
na
$55,644
May-07
$2,765
$87,121
$11,387
$129,739
$978
$44,950
$7,050
$61,084
$14,959
$22,159
$41,955
$2,456
$114,496
$6,761
$54,462
$12,338
$2,352
$5,667
$18,823
$13,518
$12,480
$16,455
$27,530
na
na
na
$61,987
%Ch
9%
6%
91%
-5%
-23%
0%
27%
15%
50%
18%
23%
-37%
29%
164%
30%
18%
265%
13%
30%
-24%
20%
23%
-7%
na
na
na
11%
Index Wgtd Avg Bid/Ask Spread

Apr-07
174.51
59.12
63.21
20.22
na
41.61
109.79
14.66
68.08
8.28
7.29
na
19.12
na
34.13
80.33
385.86
85.69
13.72
28.80
13.42
77.50
70.41
21.90
9.10
24.65
49.82
May-07
46.92
41.99
70.33
20.30
na
39.34
74.39
13.61
68.40
10.29
5.13
64.18
19.00
na
34.02
77.70
326.20
95.63
13.93
33.45
77.04
77.39
73.29
19.76
8.75
24.94
48.62
%Ch
-73%
-29%
11%
0%
na
-5%
-32%
-7%
0%
24%
-30%
na
-1%
na
0%
-3%
-15%
12%
2%
16%
474%
0%
4%
-10%
-4%
1%
-2%
Note: Bid/ask spreads for Latin American and Eastern European countries are computed based on the last business day of the month. All other bid/ask spreads are
measured over a 20 day period. Data is measured for a $10 trillion basket as of April 30, 2007. $Volume is measured in thousands of USD.
Source: Lehman Brothers, PRISE
28
212-526-9374
June 5, 2007
Exchange Traded Funds Activity

Figure 42: International ETF Monthly Activity
ETF
Name
Global
ADRD BLDRS DEV MKTS 100 ADR INDEX
VEU
Vanguard FTSE ALL-WORLD EX-U
CWI
SPDR MSCI ACWI EX-US
IOO
iShares S&P GLOBAL 100
EFG
iShares MSCI EAFE GROWTH INX
GWL SPDR S&P WORLD EX-US ETF
EEW
Claymore/ROBECO DEVELOPED WO
GWX SPDR S&P INTL SMALL CAP
EFA
iShares MSCI EAFE INDEX FUND
DGT
SPDR DJ GLOBAL TITANS ETF
EFV
iShares MSCI EAFE VALUE INX
EEN
Claymore/ROBECO DEVELOPED IN
Asia Pacific
EWS
iShares MSCI SINGAPORE
ADRA BLDRS ASIA 50 ADR INDEX FUND
ITF
iShares S&P/TOPIX 150 INDEX
EWH iShares MSCI HONG KONG INDEX
EPP
iShares MSCI PACIFIC EX JPN
VPL
Vanguard PACIFIC ETF
EWA
iShares MSCI AUSTRALIA INDEX
EWJ
iShares MSCI JAPAN INDEX FD
JPP
SPDR RUSS/NOM PRIME
JSC
SPDR Russell/NOMURA SC
Europe
EWP
iShares MSCI SPAIN INDEX FD
EWG iShares MSCI GERMANY INDEX
EZU
iShares MSCI EMU
ADRU BLDRS EUROPE 100 ADR INDEX
ADRU BLDRS EUROPE 100 ADR INDEX
EWQ iShares MSCI FRANCE INDEX FD
FEZ
StreetTracks DJ EURO STK 50
IEV
iShares S&P EUROPE 350
VGK
Vanguard EUROPEAN ETF
EWU iShares MSCI UNITED KINGDOM
FEU
StreetTracks DJ STOXX 50 FD
EWO iShares MSCI AUSTRIA INDEX
EWK
iShares MSCI BELGIUM
EWL
iShares MSCI SWITZERLAND IND
EWN iShares MSCI NETHERLANDS INX
EWI
iShares MSCI ITALY INDEX FD
EWD iShares MSCI SWEDEN INDEX FD
EKH
EUROPE 2001 HOLDRS Trust
Americas
EWC iShares MSCI CANADA
Emerging Markets
EWW iShares MSCI MEXICO
EWZ
iShares MSCI BRAZIL
ILF
iShares S&P LATIN AMERICA 40
GML
SPDR S&P EMERGING LATIN AMER
PGJ
PowerSharesGLD DRG H USX CH
EEB
Claymore/BNY BRIC ETF
EWY
iShares MSCI SOUTH KOREA IND
GXC
SPDR S&P CHINA ETF
ADRE BLDRS EMER MKTS 50 ADR INDEX
FXI
iShares FTSE/XINHUA CHINA 25
VWO Vanguard EMERGING MARKET ETF
GMF
SPDR S&P EMERGING ASIA PACIF
EWT
iShares MSCI TAIWAN INDEX FD
GMM SPDR S&P EMG MARKETS ETF
EEM
iShares MSCI EMERGING MKT IN
EWM iShares MSCI MALAYSIA
GAF
SPDR S&P EMERGING MIDDLE EAS
EZA
iShares MSCI SOUTH AFRICA IN
RSX
Market Vectors RUSSIA ETF
GUR
SPDR S&P EMERGING EUROPE ETF
Inception
Date
Benchmark
May-07
AUM
(MM)
Apr-06
Avg Daily
$Volume
(MM)
May-07
Avg Daily
$Volume
(MM)
May-07
Avg Daily
Volume
%Volume
Change
%Price
Change
11/13/02
3/8/07
1/17/07
12/5/00
8/5/05
4/20/07
2/27/07
4/20/07
8/14/01
9/25/00
8/5/05
3/1/07
BKTDM
FTR1ALWR
NDUEACWZ
SPTR100N
NDUGEAFF
STBMWUU
na
STBMWUU2
NDDUEAFE
DJGT
NDUVEAFF
na
$126
$255
$74
$751
$517
$13
$16
$15
$46,041
$172
$1,101
$11
$1
$7
$1
$4
$6
$0
$0
$0
$529
$1
$9
$0
$1
$7
$1
$5
$6
$0
$0
$1
$504
$1
$10
$0
47,044
131,881
31,495
62,981
84,514
2,957
1,243
18,133
6,519,562
7,886
133,933
381
51%
3%
2%
31%
6%
265%
79%
180%
-7%
9%
9%
-45%
3.7%
3.3%
3.1%
2.9%
2.6%
2.6%
2.5%
2.5%
2.4%
2.3%
2.1%
0.9%
$16
$34
$8
$12
$30
$0
$0
$0
$438
$0
$31
$0
0.0%
0.6%
0.4%
0.1%
0.3%
0.4%
0.2%
0.6%
0.3%
0.1%
0.3%
0.2%
26,006
731,708
0
297,928
376,666
5,900
761
3,231
13,463,313
23,410
269,540
260
3/12/96
11/13/02
10/23/01
3/12/96
10/26/01
3/4/05
3/12/96
3/12/96
11/14/06
11/14/06
NDDUSG
BKTAS
SPTR150N
NDDUHK
NDDUPFXJ
MXPF
NDDUAS
NDDUJN
RNIRIP
RNIRIS
$1,936
$131
$367
$1,267
$3,410
$1,170
$1,428
$13,981
$273
$150
$53
$1
$2
$34
$29
$7
$33
$202
$0
$1
$40
$1
$3
$57
$25
$7
$34
$288
$1
$1
3,092,838
23,358
23,533
3,577,205
183,262
102,962
1,279,471
20,652,952
10,024
19,814
-29%
-24%
65%
64%
-16%
-2%
2%
39%
11%
-4%
7.5%
4.7%
3.3%
3.1%
3.1%
3.0%
3.0%
2.2%
2.0%
-1.5%
-$4
$0
$0
$42
$43
$30
$22
-$692
$0
-$3
0.2%
0.0%
0.2%
0.0%
0.1%
0.3%
0.3%
0.1%
0.0%
0.3%
2,926,904
22,686
21,052
6,046,723
405,572
740,952
1,490,808
12,478,659
1,211
9,580
3/12/96
3/12/96
7/26/00
11/13/02
11/13/02
3/12/96
10/21/02
7/25/00
3/4/05
3/12/96
10/21/02
3/12/96
3/12/96
3/12/96
3/12/96
3/12/96
3/12/96
1/17/01
NDDUSP
NDDUGR
NDDUEMU
BKTEUR
BKTEUR
NDDUFR
SX5E
SPTR350N
MXER
NDDUUK
SX5P
NDDUAT
NDDUBE
NDDUSZ
NDDUNE
NDDUIT
NDDUSW
EKI
$511
$1,617
$3,085
$50
$50
$288
$441
$2,941
$2,438
$1,203
$151
$671
$322
$346
$308
$306
$604
$24
$11
$28
$21
$0
$0
$6
$8
$33
$17
$13
$1
$27
$4
$4
$5
$4
$10
$0
$15
$28
$31
$0
$0
$12
$17
$31
$17
$7
$5
$15
$4
$3
$5
$11
$15
$0
261,362
893,033
269,748
13,869
13,869
317,814
288,419
275,129
234,433
294,686
106,124
382,376
141,195
131,910
181,157
329,419
417,900
3,757
26%
-4%
43%
19%
19%
95%
115%
-9%
-4%
-46%
769%
-45%
-3%
-11%
9%
218%
55%
356%
5.5%
5.3%
3.8%
3.1%
3.1%
2.8%
2.8%
2.2%
2.1%
2.1%
1.9%
1.7%
0.9%
-0.1%
-0.3%
-0.6%
-1.3%
-6.1%
-$193
$99
$107
$0
$0
$54
$15
$188
$150
$0
-$27
-$95
$18
$10
$34
$107
$44
$0
0.0%
0.3%
0.3%
0.0%
0.0%
0.2%
0.1%
0.3%
0.4%
0.3%
0.2%
0.0%
0.0%
0.1%
0.1%
0.0%
0.0%
na
427,226
2,242,617
475,825
6,830
6,830
1,287,047
369,806
1,302,357
534,161
549,079
1,609,761
274,552
93,947
370,981
422,583
241,511
61,829
5,698
3/12/96
NDDUCA
$1,270
$8
$16
550,005
79%
9.2%
$54
0.3%
3,606,227
3/12/96
7/10/00
10/25/01
3/19/07
12/9/04
9/21/06
5/10/00
3/19/07
11/13/02
10/8/04
3/4/05
3/19/07
6/20/00
3/19/07
4/7/03
3/12/96
3/19/07
2/7/03
4/26/07
3/19/07
NDEUMXF
NDUEBRAF
SPTRL40N
STBMLAU
HXC
BKBRIC
NDEUSKO
STBCCNU
BKTEM
XIN0I
MXEV000C
STBMAEU
NDEUSTW
STBMEMU
NDUEEGF
NDDUMAF
STBMMEU
NDEUSSA
DXRPUSP
STBMEECQ
$1,339
$3,602
$2,369
$28
$430
$223
$2,071
$30
$520
$4,724
$3,484
$20
$2,316
$19
$17,308
$1,111
$13
$430
$45
$11
$127
$286
$43
$0
$5
$3
$41
$1
$6
$154
$25
$0
$51
$1
$761
$37
$1
$14
$0
$1
$226
$501
$63
$0
$7
$5
$66
$1
$7
$351
$31
$0
$66
$1
$1,086
$39
$2
$24
$5
$1
3,758,471
8,854,695
315,448
6,400
324,729
145,290
1,185,162
25,981
176,256
3,276,352
368,633
3,462
4,765,876
15,214
8,971,781
3,411,410
30,776
198,919
153,090
16,738
57%
55%
33%
62%
32%
68%
48%
66%
24%
113%
16%
-26%
23%
45%
36%
-1%
131%
72%
2269%
2%
13.6%
12.8%
11.6%
11.2%
10.1%
9.7%
9.5%
8.8%
8.14%
6.7%
6.7%
6.5%
5.7%
5.3%
4.9%
4.8%
-1.1%
-1.7%
-3.2%
-4.0%
-$25
$279
$326
$0
-$2
$24
$52
$0
$24
-$371
$197
$0
-$20
$0
$456
$34
$0
$26
$8
$0
0.5%
0.7%
0.7%
0.4%
0.3%
0.4%
0.3%
-0.1%
0.1%
-0.2%
0.8%
0.1%
-0.2%
0.0%
0.2%
0.1%
0.3%
-0.1%
0.5%
0.2%
8,916,964
14,344,817
761,482
417
289,140
301,046
957,841
40,371
239,423
6,154,912
1,166,597
1,588
4,871,089
1,781
26,352,940
3,832,076
51,464
197,138
86,394
1,226
May-07
Avg Prem/
Net $Flows Disct. over
(MM)
NAV
May-07
Short
Interest
Source: Lehman Brothers, MSCI, Bloomberg, FAME Data Services
29
212-526-9374
June 5, 2007
Optimized CFTC Approved Futures Portfolios to Track MSCI Benchmarks

Figure 43: Portfolio of 15 CFTC Approved Futures to Track the MSCI ACWI xUS
Index
Futures
Generic
Ticker
Roll
Frequency
UKX
Z1
Quarterly
TPX
TP1
Quarterly
CAC
CF1
Monthly
SPTSX60
PT1
Quarterly
DAX
GX1
Quarterly
AS51
XP1
Quarterly
IBEX
IB1
Monthly
SX5E
VG1
Quarterly
FXC25
FX1
Monthly
TWY
TW1
Monthly
SPMIB
ST1
Quarterly
SENSEX
SH1
Monthly
OMX
QC1
Monthly
SGY
QZ1
Monthly
NIFTY
NZ1
Monthly
Total
Tracking Error (annualized)
Beta
Country
Curr
UK
Japan
France
Canada
Germany
Australia
Spain
Europe
China
Taiwan
Italy
India
Sweden
Singapore
India
GBP
JPY
EUR
CAD
EUR
AUD
EUR
EUR
HKD
USD
EUR
INR
SEK
SGD
INR
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
20.82%
16.27%
9.97%
9.68%
8.65%
6.67%
5.20%
4.67%
3.68%
3.60%
3.50%
3.09%
2.24%
1.44%
0.53%
100.00%
0.81%
0.97
6621.40
1755.68
6104.00
804.47
7883.04
6313.50
15329.40
4512.65
16849.14
323.83
43079.00
14544.46
1276.32
432.90
4295.80
10
10,000
10
200
25
25
10
10
50
100
5
50
100
200
50
Value of
One Future
(USD)
$130,978
$144,127
$82,138
$150,495
$265,195
$130,634
$206,280
$60,724
$107,862
$32,383
$289,846
$17,910
$18,464
$56,609
$5,290
Number of
Contracts for
$100 MM
Portfolio
159
113
121
64
33
51
25
77
34
111
12
173
121
25
99
1,218
Value of Futures
Contracts (USD
Notional)
$20,825,488
$16,286,323
$9,938,756
$9,631,668
$8,751,446
$6,662,345
$5,157,002
$4,675,785
$3,667,312
$3,594,513
$3,478,155
$3,098,377
$2,234,153
$1,415,215
$523,685
$99,940,220
ADV (#
Contracts)
Futures as
% of ADV
86,814
39,695
119,566
7,823
182,851
18,641
23,054
946,003
22
27,596
17,412
21,441
87,394
8,872
412,337
0.18%
0.28%
0.10%
0.82%
0.02%
0.27%
0.11%
0.01%
151.79%
0.40%
0.07%
0.81%
0.14%
0.28%
0.02%
ADV (#
Contracts)
Futures as
% of ADV
946,003
86,814
39,695
18,641
27,596
0.06%
0.26%
0.34%
0.51%
0.57%
ADV (#
Contracts)
Futures as
% of ADV
21
7,823
27,596
3614.29%
0.81%
0.51%
Figure 44: Portfolio of Five CFTC Approved Futures to Track the MSCI ACWI xUS
Index
Futures
Generic
Ticker
Roll
Frequency
SX5E
VG1
Quarterly
UKX
Z1
Quarterly
TPX
TP1
Quarterly
AS51
XP1
Quarterly
TWY
TW1
Monthly
Total
Beta
Country
Europe
UK
Japan
Australia
Taiwan
Curr
EUR
GBP
JPY
AUD
USD
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
32.69%
30.17%
19.50%
12.59%
5.05%
100.00%
1.58%
0.95
4512.65
6621.40
1755.68
6313.50
323.83
10
10
10,000
25
100
Value of
One Future
(USD)
$60,724
$130,978
$144,127
$130,634
$32,383
Number of
Contracts for
$100 MM
Portfolio
538
230
135
96
156
1,155
Value of Futures
Contracts (USD
Notional)
$32,669,767
$30,124,920
$19,457,111
$12,540,884
$5,051,748
$99,844,431
Figure 45: Portfolio of Two CFTC Approved Futures + New EAFE Future to Track the MSCI ACWI xUS
Index
Futures
Generic
Ticker
Roll
Frequency
EAFE
BL1
Quarterly
SPTSX60
PT1
Quarterly
TWY
TW1
Monthly
Total
Beta
Country
EAFE
Canada
Taiwan
Curr
USD
CAD
USD
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
85.87%
9.53%
4.60%
100.00%
0.97%
0.95
2263.21
804.47
323.83
50
200
100
Value of
One Future
(USD)
$113,161
$150,495
$32,383
Number of
Contracts for
$100 MM
Portfolio
759
63
142
964
Value of Futures
Contracts (USD
Notional)
$85,888,820
$9,481,173
$4,598,386
$99,968,378
Note: These portfolios are USD 100 MM baskets.

Source: Lehman Brothers, MSCI, Bloomberg, FAME Data Services, APT Pro
30
212-526-9374
June 5, 2007
Figure 46: Portfolio of 12 CFTC Approved Futures to Track the MSCI World
Index
Futures
Generic
Ticker
Roll
Frequency
SPX
SP1
Quarterly
UKX
Z1
Quarterly
TPX
TP1
Quarterly
SX5E
VG1
Quarterly
CAC
CF1
Monthly
SPTSX60
PT1
Quarterly
DAX
GX1
Quarterly
AS51
XP1
Quarterly
IBEX
IB1
Monthly
SGY
QZ1
Monthly
SPMIB
ST1
Quarterly
OMX
QC1
Monthly
Total
Beta
Country
United States
UK
Japan
Europe
France
Canada
Germany
Australia
Spain
Singapore
Italy
Sweden
Curr
USD
GBP
JPY
EUR
EUR
CAD
EUR
AUD
EUR
SGD
EUR
SEK
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
47.79%
12.06%
10.08%
6.21%
4.83%
4.50%
4.01%
3.48%
2.26%
1.74%
1.58%
1.47%
100.00%
0.36%
0.99
1530.62
6621.40
1755.68
4512.65
6104.00
804.47
7883.04
6313.50
15329.40
432.90
43079.00
1276.32
200
10
10,000
10
10
200
25
25
10
200
5
100
Value of
One Future
(USD)
$306,124
$130,978
$144,127
$60,724
$82,138
$150,495
$265,195
$130,634
$206,280
$56,609
$289,846
$18,464
Number of
Contracts for
$100 MM
Portfolio
156
92
70
102
59
30
15
27
11
31
5
80
678
Value of Futures
Contracts (USD
Notional)
$47,755,344
$12,049,968
$10,088,872
$6,193,896
$4,846,170
$4,514,844
$3,977,930
$3,527,124
$2,269,081
$1,754,866
$1,449,231
$1,477,126
$99,904,453
ADV (#
Contracts)
Futures as
% of ADV
36,317
86,814
39,695
946,003
119,566
7,823
182,851
18,641
23,054
8,872
17,412
87,394
0.43%
0.11%
0.18%
0.01%
0.05%
0.38%
0.01%
0.14%
0.05%
0.35%
0.03%
0.09%
ADV (#
Contracts)
Futures as
% of ADV
36,317
946,003
86,814
39,695
7,823
0.42%
0.03%
0.15%
0.20%
0.49%
ADV (#
Contracts)
Futures as
% of ADV
21
36,317
7,823
2019.05%
0.43%
0.36%
Figure 47: Portfolio of Five CFTC Approved Futures to Track the MSCI World
Index
Futures
Generic
Ticker
Roll
Frequency
SPX
SP1
Quarterly
SX5E
VG1
Quarterly
UKX
Z1
Quarterly
TPX
TP1
Quarterly
SPTSX60
PT1
Quarterly
Total
Beta
Country
United States
Europe
UK
Japan
Canada
Curr
USD
EUR
GBP
JPY
CAD
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
47.02%
18.91%
16.78%
11.51%
5.78%
100.00%
0.59%
1.00
1530.62
4512.65
6621.40
1755.68
804.47
200
10
10
10,000
200
Value of
One Future
(USD)
$306,124
$60,724
$130,978
$144,127
$150,495
Number of
Contracts for
$100 MM
Portfolio
154
311
128
80
38
711
Value of Futures
Contracts (USD
Notional)
$47,143,096
$18,885,312
$16,765,173
$11,530,140
$5,718,803
$100,042,523
Figure 48: Portfolio of Two CFTC Approved Futures + New EAFE Future to Track the MSCI World
Index
Futures
Generic
Ticker
Roll
Frequency
EAFE
BL1
Quarterly
SPX
SP1
Quarterly
SPTSX60
PT1
Quarterly
Total
Beta
Country
Curr
EAFE
USD
United States USD
Canada
CAD
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
47.98%
47.83%
4.19%
100.00%
0.18%
0.99
2263.21
1530.62
804.47
50
200
200
Value of
One Future
(USD)
$113,161
$306,124
$150,495
Number of
Contracts for
$100 MM
Portfolio
424
156
28
608
Value of Futures
Contracts (USD
Notional)
$47,980,052
$47,755,344
$4,213,855
$99,949,251

31
212-526-9374
June 5, 2007
Figure 49: Portfolio of 10 CFTC Approved Futures to Track the MSCI EAFE
Index
Futures
Generic
Ticker
Roll
Frequency
UKX
Z1
Quarterly
TPX
TP1
Quarterly
SX5E
VG1
Quarterly
CAC
CF1
Monthly
DAX
GX1
Quarterly
AS51
XP1
Quarterly
IBEX
IB1
Monthly
SPMIB
ST1
Quarterly
SGY
QZ1
Monthly
OMX
QC1
Monthly
Total
Beta
Country
Curr
UK
Japan
Europe
France
Germany
Australia
Spain
Italy
Singapore
Sweden
GBP
JPY
EUR
EUR
EUR
AUD
EUR
EUR
SGD
SEK
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
26.59%
20.89%
12.18%
9.57%
7.44%
7.23%
4.89%
4.40%
3.54%
3.28%
100.00%
0.61%
1.00
6621.40
1755.68
4512.65
6104.00
7883.04
6313.50
15329.40
43079.00
432.90
1276.32
10
10,000
10
10
25
25
10
5
200
100
Value of
One Future
(USD)
$130,978
$144,127
$60,724
$82,138
$265,195
$130,634
$206,280
$289,846
$56,609
$18,464
Number of
Contracts for
$100 MM
Portfolio
203
145
201
117
28
55
24
15
62
177
1,027
Value of Futures
Contracts (USD
Notional)
$26,588,516
$20,898,379
$12,205,619
$9,610,202
$7,425,469
$7,184,881
$4,950,722
$4,347,694
$3,509,732
$3,268,141
$99,989,356
ADV (#
Contracts)
Futures as
% of ADV
86,814
39,695
946,003
119,566
182,851
18,641
23,054
17,412
8,872
87,394
0.23%
0.37%
0.02%
0.10%
0.02%
0.30%
0.10%
0.09%
0.70%
0.20%
ADV (#
Contracts)
Futures as
% of ADV
946,003
86,814
39,695
18,641
0.07%
0.27%
0.38%
0.40%
Figure 50: Portfolio of Four CFTC Approved Futures to Track the MSCI EAFE
Index
Futures
Generic
Ticker
Roll
Frequency
SX5E
VG1
Quarterly
UKX
Z1
Quarterly
TPX
TP1
Quarterly
AS51
XP1
Quarterly
Total
Beta
Country
Europe
UK
Japan
Australia
Curr
EUR
GBP
JPY
AUD
Optimal
Weight
Index Level
(Foreign)
Contract
Multiplier
37.53%
30.86%
21.94%
9.67%
100.00%
0.86%
1.00
4512.65
6621.40
1755.68
6313.50
10
10
10,000
25
Value of
One Future
(USD)
$60,724
$130,978
$144,127
$130,634
Number of
Contracts for
$100 MM
Portfolio
618
236
152
74
1,080
Value of Futures
Contracts (USD
Notional)
$37,527,725
$30,910,788
$21,907,266
$9,666,931
$100,012,710

32
212-526-9374
June 5, 2007
Trading Statistics
Figure 51: MSCI World Sector / Country Correlation
90%
Figure 52: MSCI World and S&P 500 Correlation

95%
80%
90%
70%
85%
60%
80%
50%
75%
World Sector Correlation
Ju
n07
Ap
r- 0
7
M
ay
-0
7
Fe
b07
M
ar
-0
7
Ja
n07
De
c06
No
v06
O
ct
-0
6
Se
p06
Au
g06
70%
Ju
l-0
6
Ap
r- 0
7
M
ay
-0
7
Fe
b07
M
ar
-0
7
Ja
n07
De
c06
No
v06
O
ct
-0
6
Se
p06
Au
g06
Ju
l-0
6
Ju
n06
30%
Ju
n06
40%
World Country Correlation
Note: Correlation represents the average of all sector/country pair correlations

calculated over a 63 trading day moving window.
Source: Morgan Stanley Capital International, Inc., Lehman Brothers

Figure 53: MSCI EAFE Sector / Country Correlation
Figure 54: MSCI EAFE and S&P 500 Correlation
90%
70%
80%
60%
50%
70%
40%
60%
30%
50%
20%
40%
10%
EAFE Sector Correlation
Ap
r- 0
7
M
ay
-0
7
Fe
b07
M
ar
-0
7
Ja
n07
De
c06
No
v06
O
ct
-0
6
Se
p06
Au
g06
Ju
l-0
6
0%
Ju
n06
Ap
r- 0
7
M
ay
-0
7
Fe
b07
M
ar
-0
7
Ja
n07
De
c06
No
v06
O
ct
-0
6
Se
p06
Au
g06
Ju
l-0
6
Ju
n06
30%
EAFE Country Correlation

Note: Correlation represents the 63 trading day correlation between the S&P 500
Index and the MSCI EAFE Index without dividends and in local currency.
33
June 5, 2007
Figure 55: Correlation of MSCI World Industry Groups in Local Currency (past 60 months)
Energy
Materials
Capital
Goods
Comml
Svc &
Suppl
Transport
Auto &
Comp
Cons Dur
& Apparel
Hotels
Rest &
Leis
Media
Retailing
Food &
Staples
Retl
Food Bev House &

& Tobacco Pers Prod
H Care
Equip &
Svc
Pharma &
Biotech
Energy
100%
Materials
67%
100%
Capital Goods
47%
84%
100%
Comml Svc &

Suppl
50%
80%
85%
100%
Transportation
45%
78%
80%
79%
100%
49%
77%
78%
69%
63%
100%
51%
80%
81%
84%
73%
71%
100%
43%
71%
81%
89%
78%
67%
82%
100%
Media
35%
65%
75%
80%
62%
63%
68%
73%
100%
Retailing
33%
68%
72%
83%
77%
59%
78%
86%
73%
100%
32%
64%
66%
76%
68%
57%
66%
72%
64%
76%
100%
42%
46%
50%
65%
49%
52%
49%
56%
57%
48%
67%
100%
24%
32%
35%
44%
49%
38%
37%
38%
29%
39%
46%
62%
100%
33%
44%
48%
58%
41%
43%
59%
53%
48%
44%
47%
65%
52%
100%
27%
37%
51%
53%
37%
47%
43%
48%
62%
43%
49%
56%
47%
43%
100%
Auto &
Components
Cons Dur &
Apparel
Hotels Rest &
Leis
Food & Staples

Retl
Food Bev &
Tobacco
House & Pers
Prod
H Care Equip &
Svc
Pharma &
Biotech
Banks
Divers
Financ
Insurance
Real
Estate
Software Tech Hard

& Services & Equip
Banks
36%
72%
81%
86%
72%
68%
74%
79%
79%
75%
71%
64%
41%
51%
65%
100%
Divers Financ
35%
70%
80%
88%
69%
63%
74%
79%
80%
73%
69%
59%
36%
49%
65%
93%
100%
Insurance
38%
75%
82%
83%
70%
69%
74%
77%
76%
71%
73%
55%
37%
48%
63%
88%
89%
100%
Real Estate
37%
61%
61%
62%
56%
53%
72%
65%
46%
55%
47%
40%
36%
46%
36%
60%
60%
53%
100%
36%
60%
71%
74%
64%
49%
66%
70%
71%
69%
53%
38%
22%
33%
55%
72%
76%
78%
45%
100%
34%
64%
80%
80%
63%
58%
79%
76%
81%
73%
54%
43%
23%
44%
54%
78%
83%
79%
60%
84%
Software &
Services
Tech Hard &
Equip
Semicon &
Semicon Equip
Semicon &
Semicon
Equip
Telecom
Svc
Utilities
100%
16%
53%
60%
65%
54%
35%
70%
58%
55%
70%
48%
19%
26%
32%
1%
52%
46%
52%
37%
55%
72%
100%
Telecom Svc
34%
55%
69%
73%
50%
51%
59%
62%
83%
59%
58%
51%
18%
31%
66%
76%
78%
76%
43%
80%
81%
15%
100%
Utilities
55%
51%
52%
63%
50%
53%
45%
61%
54%
47%
59%
67%
50%
50%
52%
65%
61%
57%
48%
41%
43%
0%
48%
100%
34
June 5, 2007
Figure 56: Correlation of MSCI EAFE Industry Groups in Local Currency (past 60 months)
Energy
Materials
Capital
Goods
Comml
Svc &
Suppl
Auto &
Transportat
Cons Dur
Compone
ion
& Apparel
nts
Hotels
Rest &
Leis
Media
Retailing
Food &
Staples
Retl
Food Bev House &

& Tobacco Pers Prod
H Care
Equip &
Svc
Pharma &
Biotech
Banks
Divers
Financ
Insurance
Real
Estate
Software Tech Hard

& Services & Equip
Semicon &
Semicon
Equip
Telecom
Svc
Energy
100%
Materials
71%
100%
Capital Goods
59%
91%
100%
Comml Svc &

Suppl
56%
83%
88%
100%
Transportation
50%
74%
82%
80%
100%
55%
76%
77%
68%
63%
100%
52%
79%
89%
80%
76%
69%
100%
60%
77%
82%
83%
78%
70%
79%
100%
Media
46%
72%
79%
75%
70%
58%
74%
79%
100%
Retailing
49%
73%
79%
83%
82%
70%
77%
82%
75%
100%
47%
64%
64%
75%
76%
55%
58%
71%
66%
79%
100%
45%
51%
50%
61%
53%
52%
42%
57%
49%
56%
65%
100%
40%
45%
44%
54%
55%
50%
44%
58%
43%
56%
66%
79%
100%
55%
72%
72%
79%
72%
61%
64%
72%
76%
77%
71%
71%
64%
100%
40%
46%
49%
52%
44%
53%
43%
53%
55%
55%
57%
51%
48%
63%
100%
Banks
52%
77%
82%
81%
75%
67%
71%
81%
80%
77%
68%
54%
49%
76%
65%
100%
Divers Financ
53%
81%
89%
89%
81%
73%
82%
85%
81%
82%
69%
51%
52%
75%
59%
89%
100%
Insurance
44%
73%
77%
79%
68%
61%
68%
79%
82%
73%
66%
48%
50%
74%
62%
89%
85%
100%
Real Estate
40%
64%
72%
65%
70%
56%
76%
67%
61%
68%
54%
42%
40%
51%
37%
59%
68%
54%
100%
38%
66%
77%
72%
71%
54%
70%
77%
79%
74%
60%
28%
32%
64%
51%
81%
81%
85%
59%
100%
42%
72%
84%
78%
74%
63%
84%
76%
86%
77%
59%
44%
40%
71%
54%
78%
83%
79%
66%
84%
100%
29%
69%
76%
78%
51%
47%
86%
69%
61%
60%
35%
33%
37%
60%
7%
55%
68%
67%
50%
73%
76%
100%
Telecom Svc
32%
46%
52%
45%
45%
45%
45%
60%
76%
45%
37%
26%
18%
49%
42%
71%
59%
73%
42%
71%
63%
21%
100%
Utilities
55%
57%
60%
66%
58%
58%
45%
70%
55%
57%
61%
66%
60%
61%
52%
70%
67%
63%
46%
51%
51%
18%
41%
Auto &
Components
Cons Dur &
Apparel
Hotels Rest &
Leis
Food & Staples

Retl
Food Bev &
Tobacco
House & Pers
Prod
H Care Equip &
Svc
Pharma &
Biotech
Software &
Services
Tech Hard &
Equip
Semicon &
Semicon Equip
Utilities
100%
35
June 5, 2007
Figure 57: Correlation of MSCI Developed Country Index Returns with Net Dividends in Local Currency (past 60 months)
Austria
Australia
Belgium
Canada
Switzerland
Germany
Denmark
Spain
Finland
France
UK
Greece
Hong Kong
Ireland
Italy
Japan
Netherlands
Norway
New Zealand
Portugal
Sweden
Singapore
US
Austria
Australia
Belgium
Canada
100%
61%
58%
62%
56%
57%
59%
51%
36%
59%
56%
57%
40%
52%
54%
46%
57%
66%
53%
42%
56%
52%
50%
61%
100%
67%
68%
64%
68%
71%
63%
53%
71%
71%
51%
44%
69%
52%
56%
71%
77%
52%
57%
67%
61%
67%
58%
67%
100%
64%
85%
88%
78%
77%
59%
89%
82%
68%
51%
72%
78%
36%
88%
76%
35%
76%
81%
65%
81%
62%
68%
64%
100%
61%
67%
62%
65%
54%
72%
69%
56%
66%
54%
68%
56%
64%
80%
37%
57%
64%
58%
73%
Switzerland Germany Denmark
56%
64%
85%
61%
100%
87%
74%
77%
57%
86%
79%
72%
49%
69%
74%
52%
87%
71%
42%
65%
82%
63%
79%
57%
68%
88%
67%
87%
100%
75%
87%
64%
96%
86%
73%
49%
79%
85%
40%
92%
78%
35%
73%
91%
69%
89%
59%
71%
78%
62%
74%
75%
100%
64%
65%
76%
73%
49%
50%
69%
62%
47%
79%
78%
43%
72%
77%
61%
71%
Spain
Finland
France
UK
Greece
Hong Kong
Ireland
Italy
Japan
Netherlands
Norway
New Zealand
Portugal
Sweden
Singapore
US
51%
63%
77%
65%
77%
87%
64%
100%
63%
87%
84%
64%
47%
79%
80%
37%
83%
70%
32%
72%
85%
63%
86%
36%
53%
59%
54%
57%
64%
65%
63%
100%
69%
61%
33%
48%
58%
61%
24%
67%
65%
22%
60%
75%
43%
66%
59%
71%
89%
72%
86%
96%
76%
87%
69%
100%
89%
67%
52%
78%
86%
42%
94%
80%
34%
75%
90%
69%
88%
56%
71%
82%
69%
79%
86%
73%
84%
61%
89%
100%
58%
48%
73%
83%
44%
87%
75%
38%
72%
84%
68%
85%
57%
51%
68%
56%
72%
73%
49%
64%
33%
67%
58%
100%
43%
51%
62%
44%
67%
62%
33%
43%
62%
52%
58%
40%
44%
51%
66%
49%
49%
50%
47%
48%
52%
48%
43%
100%
43%
51%
40%
49%
63%
26%
47%
58%
64%
61%
52%
69%
72%
54%
69%
79%
69%
79%
58%
78%
73%
51%
43%
100%
66%
41%
78%
62%
43%
71%
78%
60%
76%
54%
52%
78%
68%
74%
85%
62%
80%
61%
86%
83%
62%
51%
66%
100%
34%
81%
67%
27%
69%
83%
57%
80%
46%
56%
36%
56%
52%
40%
47%
37%
24%
42%
44%
44%
40%
41%
34%
100%
43%
47%
34%
38%
41%
38%
38%
57%
71%
88%
64%
87%
92%
79%
83%
67%
94%
87%
67%
49%
78%
81%
43%
100%
75%
34%
75%
88%
66%
84%
66%
77%
76%
80%
71%
78%
78%
70%
65%
80%
75%
62%
63%
62%
67%
47%
75%
100%
45%
64%
80%
66%
76%
53%
52%
35%
37%
42%
35%
43%
32%
22%
34%
38%
33%
26%
43%
27%
34%
34%
45%
100%
34%
35%
44%
38%
42%
57%
76%
57%
65%
73%
72%
72%
60%
75%
72%
43%
47%
71%
69%
38%
75%
64%
34%
100%
74%
56%
73%
56%
67%
81%
64%
82%
91%
77%
85%
75%
90%
84%
62%
58%
78%
83%
41%
88%
80%
35%
74%
100%
65%
84%
52%
61%
65%
58%
63%
69%
61%
63%
43%
69%
68%
52%
64%
60%
57%
38%
66%
66%
44%
56%
65%
100%
68%
50%
67%
81%
73%
79%
89%
71%
86%
66%
88%
85%
58%
61%
76%
80%
38%
84%
76%
38%
73%
84%
68%
100%
Figure 58: Correlation of MSCI Regional Index Monthly Price Returns in Local Currency (past 60
months)
World
World
EAFE
S&P 500
EMF
Pacific
Pan-Euro
Europe
Kokusai
G7 Index
EAFE
S&P 500
EMF
Pacific Pan-Euro Europe Kokusai G7 Index
100%
96%
97%
83%
63%
96%
97%
99%
96%
100%
87%
82%
75%
97%
97%
94%
100%
95%
97%
87%
100%
77%
49%
90%
90%
98%
98%
83%
82%
77%
100%
70%
76%
77%
80%
82%
63%
75%
49%
70%
100%
55%
57%
55%
63%
96%
97%
90%
76%
55%
100%
100%
97%
95%
97%
97%
90%
77%
57%
100%
100%
97%
95%
99%
94%
98%
80%
55%
97%
97%
100%
99%
100%
95%
98%
82%
63%
95%
95%
99%
100%
36
212-526-9374
June 5, 2007
Analyst Certification:
I, Gabriela Baez, hereby certify (1) that the views expressed in this research email accurately reflect my personal views about any or all of the subject securities or
issuers referred to in this email and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in
this email.
FOR CURRENT IMPORTANT DISCLOSURES REGARDING COMPANIES THAT ARE THE SUBJECT OF THIS RESEARCH REPORT, PLEASE SEND A WRITTEN
REQUEST TO: Lehman Brothers Control Room, 745 Seventh Avenue, 19th floor, New York, NY 10019 or refer to the firm's disclosure website at
www.lehman.com/disclosures
1H1H1H1H
Important Disclosures
The analysts responsible for preparing this report have received compensation based upon various factors including the Firms total revenues, a portion of which is
generated by investment banking activities.
Other Material Conflicts:
Lehman Brothers International (Europe), Seoul branch is a liquidity provider of equity linked notes for POSCO.
Lehman Brothers International (Europe), Seoul branch is a liquidity provider of equity linked notes for Hyundai Heavy.
Lehman Brothers International (Europe), Seoul branch is a liquidity provider of equity linked notes for Samsung.
Lehman Brothers Inc. or an affiliate is a market maker or liquidity provider in the securities of Elan.
Lehman Brothers Inc. or an affiliate is a market maker or liquidity provider in the securities of Bank of Ireland.
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Index & Portfolio Analysis

Gabriela Baez, CFA

Gabriela Baez, CFA

Global Index Performance Monthly Review

Index & Portfolio Analysis

Index & Portfolio Analysis

Global Index Performance Monthly Review

May Performance Review

3.20%, and 4.01%,

Figure 1: MSCI World May Performance

Figure 2: MSCI EAFE May Performance

Index & Portfolio Analysis

Global Index Performance Monthly Review

Source: Lehman Brothers, FAME Data Services

MSCI Emerging Markets: Performance Summary

Index & Portfolio Analysis

Global Index Performance Monthly Review

Figure 4: MSCI Emerging Markets May Performance

MSCI Regional and Sector Performance

Index & Portfolio Analysis

Global Index Performance Monthly Review

Index & Portfolio Analysis

Global Index Performance Monthly Review

GICS Industry Group

EXXON MOBIL CORP

Pharmaceuticals, Biotechnology &

GICS Industry Group

EXXON MOBIL CORP

Pharmaceuticals, Biotechnology &

Pharmaceuticals, Biotechnology &

Pharmaceuticals, Biotechnology &

GICS Industry Group

GICS Industry Group

Source: Lehman Brothers, MSCI, Bloomberg, FAME

Index & Portfolio Analysis

Global Index Performance Monthly Review

GICS Industry Group

GICS Industry Group

Source: Lehman Brothers, MSCI, Bloomberg, FAME

Index & Portfolio Analysis

Global Index Performance Monthly Review

Figure 12: Event Timeline, May 2007

World Daily World Daily

Index & Portfolio Analysis

Industry Group Performance in June

Index & Portfolio Analysis

Global Index Performance Monthly Review

0.8% 3.4% 0.23 4.9% -7.9%

0.8% 3.7% 0.21 5.3% -8.1%

World Industry Groups

EAFE Industry Groups

3.7% 19.4% 9.0% 10.2%

4.9% -1.3% 2.1%

Source: Lehman Brothers, FAME

Index & Portfolio Analysis

Global Index Performance Monthly Review

Recap: MSCI May 2007 Annual Review

Figure 14: Performance of MSCI Annual Review by Benchmark

Index & Portfolio Analysis

of indexer flows, with

The buys less sells

for the North America

Figure 15: Intraday Performance for MSCI EAFE