This section provides a description of the subcustodian network used by each global custodian. A Network Management Table¾ one for each global custodian¾ indicates current and planned capability on a country-by-country basis. Terms used in the charts are defined as follows:

Subcustodian is the agent bank(s) used by the global custodian for custody services in the designated country. A subcustodian is either "proprietary" (owned by the global custodian bank, such as a branch operation) or "non-proprietary" (e.g. a foreign bank relationship). In some cases, custodians may select more than one subcustodian in a country.

If a subcustodian is named, the global custodian "currently" uses the local agent for custody operations, unless noted otherwise. If the term "Under Review" is found in this table column, the global custodian plans to expand their network sometime in 2000. Typically, when under review, the subcustodian's name is not publicized until the evaluation, selection and approval process is completed.

The decision to add a country location to a global custody network relies heavily on an investor’s decision to enter a foreign market. A change in a planned investment strategy may affect the timing and decision about adding a new country location to a worldwide network. Also, adding a new country location involves numerous activities, especially a thorough due diligence by both the global custodian and investor. The lead time is normally in the range of three to six months, with more time being needed in some cases.

SEC 17f(5) Qualified?

The regulation, drafted in 1984, for the purpose of protecting U.S. investor assets in a foreign country. The rule applies to U.S. registered mutual funds; generally considered by the industry as a good regulatory standard for all investors. Most subcustodians meet this requirement. In those few cases where the qualification is unmet or awaiting approval, a footnote will be supplied.

A Network Management Table is included for the following custodians, unless noted otherwise: