-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TNnCFR/fIMNEIQuVu0BvEjvJRmMTEtx3Ea/ckPgrl3/PLhi4407AeBH2SIFix+hh +BY/Y5simTzm+nkux479NA== 0001047469-99-024211.txt : 19990616 0001047469-99-024211.hdr.sgml : 19990616 ACCESSION NUMBER: 0001047469-99-024211 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990615 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN STANLEY EMERGING MARKETS DEBT FUND INC CENTRAL INDEX KEY: 0000904112 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 133713706 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: SEC FILE NUMBER: 811-07694 FILM NUMBER: 99646484 BUSINESS ADDRESS: STREET 1: 1221 AVENUE OF THE AMERICAS STREET 2: 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10020 BUSINESS PHONE: 6175578742 MAIL ADDRESS: STREET 1: 1221 AVENUE OF THE AMERIAS STREET 2: 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10020 N-30B-2 1 N-30B-2 - ------------------------------------------------------------------------------- MORGAN STANLEY EMERGING MARKETS DEBT FUND, INC. - ------------------------------------------------------------------------------- FIRST QUARTER REPORT MARCH 31, 1999 MORGAN STANLEY DEAN WITTER INVESTMENT MANAGEMENT INC. INVESTMENT ADVISER MORGAN STANLEY EMERGING MARKETS DEBT FUND, INC. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- DIRECTORS AND OFFICERS Barton M. Biggs CHAIRMAN OF THE BOARD OF DIRECTORS Michael F. Klein PRESIDENT AND DIRECTOR Peter J. Chase DIRECTOR John W. Croghan DIRECTOR David B. Gill DIRECTOR Graham E. Jones DIRECTOR John A. Levin DIRECTOR William G. Morton, Jr. DIRECTOR Stefanie V. Chang VICE PRESIDENT AND ACTING SECRETARY Harold J. Schaaff, Jr. VICE PRESIDENT Joseph P. Stadler VICE PRESIDENT Joanna M. Haigney TREASURER Belinda A. Brady ASSISTANT TREASURER - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- INVESTMENT ADVISER Morgan Stanley Dean Witter Investment Management Inc. 1221 Avenue of the Americas New York, New York 10020 - ------------------------------------------------------------------------------- ADMINISTRATOR The Chase Manhattan Bank 73 Tremont Street Boston, Massachusetts 02108 - ------------------------------------------------------------------------------- CUSTODIAN The Chase Manhattan Bank 3 Chase MetroTech Center Brooklyn, New York 11245 - ------------------------------------------------------------------------------- SHAREHOLDER SERVICING AGENT Boston Equiserve Investor Relations Department P.O. Box 644 Boston, Massachusetts 02102-0644 (800) 730-6001 - ------------------------------------------------------------------------------- LEGAL COUNSEL Rogers & Wells LLP 200 Park Avenue New York, New York 10166 - ------------------------------------------------------------------------------- INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, New York 10036 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- For additional Fund information, including the Fund's net asset value per share and information regarding the investments comprising the Fund's portfolio, please call 1-800-221-6726 or visit our website at www.msdw.com/institutional/investmentmanagement. LETTER TO SHAREHOLDERS - ------------------ For the three months ended March 31, 1999, the Morgan Stanley Emerging Markets Debt Fund, Inc. (the "Fund") had a total return, based on net asset value per share, of 6.73% compared to 5.06% for the J.P. Morgan Emerging Markets Bond Plus Index (the "Index"). For the period since the Fund's commencement of operations on July 23, 1993 through March 31, 1999, the Fund's total return, based on net asset value per share, was 67.83% compared to 72.78% for the Index. On March 31, 1999, the closing price of the Fund's shares on the New York Stock exchange was $7 1/2, representing a 3.6% premium to the Fund's net asset value per share. During the three months ended March 31, 1999, emerging market investors decided that many of the negative external factors overhanging the market were reflected in debt prices and that the worst in terms of economic conditions would soon pass. As a result, despite a poor start, the Fund had a strong rebound during the latter part of the first quarter of 1999. The challenges facing emerging market countries as they entered 1999 were daunting. The prospects for lower Organization for Economic Co-operation and Development (OECD) growth, continued weak commodity prices, global excess capacity and rising deficits were enough to discourage even the most optimistic investor. However, OECD growth as a whole held up a little better than expected during the first quarter of 1999. The Japanese economy stabilized, at least temporarily, which helped to underpin a modest recovery in most of the economies of Emerging Asia. The U.S. economy continued to perform above trend while weakness was evident only in the Euro block countries. Another positive surprise was higher oil prices, which resulted from a mid-March OPEC agreement to cut oil production. This development eased the fiscal pressures burdening many of the commodity exporting countries this year. While base metals and other commodity prices remain weak, the 45% move in the price of oil since the beginning of the year will serve as a windfall to emerging countries such as Ecuador, Mexico, Russia and Venezuela. Still, global excess oil capacity remains high and the moderate OECD growth rates will not materially improve the outlook for oil. But to their credit, emerging countries have by and large made the necessary adjustments to cope with the realities of lower revenues from commodity exports and higher costs of capital. During the month of January 1999, the Index had a total return of -3.71% with spreads widening by 137 basis points to +1,288 basis points over comparable U.S. Treasury securities. In comparison, the Fund returned -3.00%, and benefited from underweight positions in Ecuador, Brazil and Venezuela, the three worst performing countries for the month. Fund performance was enhanced by overweights in Mexico and Bulgaria, and to a lesser extent South Korea, as assets rallied in response to an upward revision in the country's credit rating and outlook by S&P. An underweight in Poland and Nigeria, the only other countries to post positive returns in January, detracted from performance. Also during January, Brazil floated its currency. The real subsequently depreciated 42% during the month. The immediate economic fallout will be felt in the form of a deeper economic contraction, higher inflation, higher interest rates and a deteriorating public sector debt dynamic. The Brazilians will need to make further fiscal cuts and adhere to a tighter monetary policy to combat the short-term negative effects of the devaluation. For the month of February 1999, the Fund returned 1.92%. In comparison the Index had a total return of 1.44% during the same period. Latin America led the market higher as Brazil, Peru and Venezuela were among the top four performers during the month. Bulgaria, with a 4.22% return, was the only non-Latin country to post strong positive returns. Latin America also produced one of the worst performers of the month as Ecuador declined by 9.67% due to a deteriorating fiscal and political environment, which has reduced the prospects for IMF aid this year. Ecuadorian bonds are trading at distressed levels reflecting the fact that without multi-lateral aid, the probability of default this year is high. Russia was the only country to fair worse, with a return of -9.76% for the month, as investors continued to doubt the government's ability to service its external debt. Since the crisis last summer, the Russians have not articulated a coherent economic policy framework. In the absence of such a framework, the prospects for hyperinflation and continued capital flight remain high. Fund returns were aided by overweights in Bulgaria, Turkey, Colombia and, to a lesser extent, Peru. Underperformance attributable to underweight positions in Brazil and Venezuela was mitigated somewhat by beneficial security selection within those countries. Emerging markets debt staged a significant rally in the month of March 1999. The Index rallied by 7.56%, with spreads tightening by 159 basis points to 1,171 basis points over U.S. Treasuries. In comparison the Fund returned 7.80% during the same period. The market was led higher by the riskier Latin American credits, with Brazil, Ecuador and Venezuela producing the best returns for the month. Despite a positive 14.87% return in March, Ecuadorian assets remain the worst performers in 1999, as Ecuador has returned -7.98% year to date. In general, the Fund rallied in March as many of the negative events that had been an- 2 ticipated by investors failed to materialize. Inflation in Brazil, while still high by most standards, was tamer than expected allowing the Central Bank to lower domestic interest rates sooner than had been anticipated. The current government in Ecuador was able to piece together a fragile political coalition in support of a fiscal reform package that is a pre-condition to any agreement with the IMF. While the situation remains tenuous and banking sector reform still needs to be addressed, the formation of this coalition is a significant first step towards reform and again was unanticipated by the general market. Lastly, the recent rebound in the price of oil had a significant positive impact on Venezuelan, Mexican and Russian assets. The conflict in Kosovo proved to be the only cloud hanging over the Fund in March. Bulgarian assets bore the brunt of investors' fears, as Bulgarian debt declined by 2.99%, making it the only country to produce negative returns last month. While Bulgaria shares a border with Serbia, the trade links between the countries are limited. Exports to Yugoslavia account for approximately 2.2% of Bulgaria's total exports. However, most of the trade routes from Bulgaria to Western Europe run through Yugoslavia and are now effectively closed due to the war. Bulgarian goods must now be transported by a more circuitous route, which will hinder trade flows in the future. In addition, fears that the war will spread and destabilize the entire Balkan region adversely impacted Bulgaria's performance. An overweight in Bulgarian assets and an underweight in Venezuelan assets dampened Fund returns in March. This confluence of positive external developments mentioned above helped propel emerging debt prices during the first quarter and is likely to continue to provide the necessary environment for a continued rally in the months ahead. However, these conditions remain fragile. It may only be a matter of months before OPEC quotas are ignored and the recent run up in oil prices reverses. The nascent recovery in Japan appears to us to have been driven by last summer's fiscal stimulus package. The effects of the government work spending became visible during the fourth quarter of 1998 and the first quarter of 1999. All other sectors of the economy continued to decline. So far, Brazil has done an estimable job of managing investor expectations and market technicalities. However, the difficult tasks of holding the line on fiscal cuts and implementing structural reforms remain ahead. In short, the developments in March were undoubtedly positive for the market, but the gains may be fleeting. Therefore we will shift to a more aggressive posture only upon further evidence that these positive trends are sustainable. Sincerely, /s/ Michael F. Klein Michael F. Klein PRESIDENT AND DIRECTOR April 1999 THE INFORMATION CONTAINED IN THIS OVERVIEW REGARDING SPECIFIC SECURITIES IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS A RECOMMENDATION TO PURCHASE OR SELL THE SECURITIES MENTIONED. - ------------------------------------------------------------------------------- DAILY NET ASSET AND MARKET VALUES, AS WELL AS MONTHLY PORTFOLIO CHARACTERISTICS, CAN NOW BE ACCESSED AT WWW.MSDW.COM/INSTITUTIONAL/INVESTMENTMANAGEMENT. 3 Morgan Stanley Emerging Markets Debt Fund, Inc. Investment Summary as of March 31, 1999 (Unaudited) - ------------------------------------------------------------------------------- - -------------------------------------------------------------------------------
HISTORICAL TOTAL RETURN (%) INFORMATION ------------------------------------------------------------------------- MARKET VALUE (1) NET ASSET VALUE (2) INDEX (3) ---------------------- ----------------------- --------------------- AVERAGE AVERAGE AVERAGE CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL ---------- ------- ---------- ------- ---------- --------- Fiscal Year to Date 7.84% -- 6.73% -- 5.06% -- One Year -35.06 -35.06% -33.29 -33.29% -14.47 -14.47% Five Year 51.45 8.66 70.39 11.25 84.75 13.06 Since Inception* 73.86 10.21 67.83 9.53 72.78 10.09
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. - ------------------------------------------------------------------------------- RETURNS AND PER SHARE INFORMATION [GRAPH]
YEAR ENDED DECEMBER 31, THREE MONTHS ENDED MARCH 31, 1993* 1994 1995 1996 1997 1998 1999 ------ ------ ------ ------ ------ ------ ----------- Net Asset Value Per Share...... $18.96 $ 12.23 $12.40 $17.31 $15.21 $ 7.01 $7.24 Market Value Per Share ........ $18.13 $ 11.38 $12.50 $15.13 $15.38 $ 7.19 $7.50 Premium/(Discount)............. -4.4% -7.0% 0.8% -12.6% 1.1% 2.6% 3.6% Income Dividends............... $ 0.16 $ 1.49 $ 1.72 $ 1.08 $ 1.27 $ 1.41 $0.24 Capital Gains Distributions.... -- $ 0.41 -- -- $ 3.44 $ 2.94 -- Fund Total Return (2).......... 35.96% -25.95% 26.85%+ 50.98% 21.71% -33.00% 6.73% Index Total Return (3)......... 18.67% -18.93% 26.77% 39.31% 13.02% -14.35% 5.06%
(1) Assumes dividends and distributions, if any, were reinvested. (2) Total investment return based on net asset value per share reflects the effects of changes in net asset value on the performance of the Fund during each period, and assumes dividends and distributions, if any, were reinvested. These percentages are not an indication of the performance of a shareholder's investment in the Fund based on market value due to differences between the market price of the stock and the net asset value per share of the Fund. (3) The J.P. Morgan Emerging Markets Bond Plus Index is a market weighted index composed of all Brady bonds, outstanding loans and Eurobonds, as well as U.S. Dollar local market instruments of Argentina, Brazil, Bulgaria, Mexico, Morocco, Russia, Nigeria, the Philippines, Poland and Venezuela. Because the J.P. Morgan Emerging Markets Bond Plus Index was not available prior to January 1, 1994, the performance of the J.P. Morgan Emerging Markets Bond Index is shown for the period July 23, 1993 to December 31, 1993, and used for purposes of computing cumulative performance of the benchmark index for that period. * The Fund commenced operations on July 23, 1993. + This return does not include the effect of the rights issued in connection with the Rights Offering. 4 Morgan Stanley Emerging Markets Debt Fund, Inc. Portfolio Summary as of March 31, 1999 (Unaudited) - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- DIVERSIFICATION OF TOTAL INVESTMENTS [CHART] Debt Instruments (98.2%) Short-Term Investments (1.8%)
- ------------------------------------------------------------------------------- COUNTRY WEIGHTINGS [CHART] Mexico (21.3%) Argentina (20.7%) Brazil (20.2%) Colombia (5.5%) Bulgaria (5.3%) Russia (3.2%) Philippines (2.9%) Panama (2.6%) Korea (2.6%) Peru (2.3%) Other (13.4%)
- ------------------------------------------------------------------------------- TEN LARGEST HOLDINGS*
PERCENT OF TOTAL INVESTMENTS ----------- 1. Republic of Argentina 9.3% 6.188%, 3/31/05 (Argentina) 2. United Mexican States Par Bond 7.5 6.25%, 12/31/19 (Mexico) 3. Federative Republic of Brazil 'EI-L' Bond 6.1 6.625%, 4/15/06 (Brazil) 4. United Mexican States Discount Bond 5.5 12/31/19 (Mexico) 5. Republic of Argentina Global Units 5.5 12.125%, 2/15/19 (Argentina) 6. Federative Republic of Brazil 'C' Bond 4.4 PIK 8.00%, 4/15/06 (Brazil) 7. United Mexican States Euro Bond 4.0 10.375%, 2/17/09 (Mexico) 8. United Mexican States Global Bond 3.5 11.375%, 9/15/16 (Mexico) 9. Republic of Bulgaria Discount Bond 'A' 3.2 Euro 6.688%, 7/28/24 (Bulgaria) 10. Federative Republic of Brazil 3.1 Debt Conversion 'L' Bond --- 6.688%, 4/15/12 (Brazil) 52.1% ----- -----
* Excludes short-term investments. 5 FINANCIAL STATEMENTS - --------- STATEMENT OF NET ASSETS (UNAUDITED) (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) - --------- MARCH 31, 1999
FACE AMOUNT VALUE (000) (000) - ------------------------------------------------------------------------------- DEBT INSTRUMENTS(98.2%) - ------------------------------------------------------------------------------- ARGENTINA (20.7%) CORPORATE (3.9%) CIA International Telecom 10.375%, 8/1/04 ARP 350 U.S.$ 271 (a)10.375%, 8/1/04 2,820 2,187 Nortel Inversora 'A' 6.00%, 3/31/07 U.S.$ 7,296 4,387 (a)Supercanal Holdings S.A. 11.50%, 5/15/05 1,410 635 ----------- 7,480 ----------- SOVEREIGN (16.8%) Republic of Argentina 11.75%, 4/7/09 3,860 3,753 Republic of Argentina 'L' 6.188%, 3/31/05 20,734 17,769 Republic of Argentina Global Units (Euro) 12.125%, 2/15/19 10,500 10,400 ----------- 31,922 ----------- 39,402 ----------- - ------------------------------------------------------------------------------- BRAZIL (20.2%) SOVEREIGN (20.2%) Brazil Global Bond 10.125%, 5/15/27 7,500 5,475 Federative Republic of Brazil 'C' Bond PIK 8.00%, 4/15/14 13,285 8,428 Federative Republic of Brazil 'EI-L' Bond 6.625%, 4/15/06 15,898 11,526 Federative Republic of Brazil 'L' 4.50%, 1/1/80 2,000 1,110 Federative Republic of Brazil Debt Conversion 'L' Bond 6.688%, 4/15/12 10,260 5,983 Federative Republic of Brazil Debt Conversion Bond 6.188%, 4/15/12 1,590 927 Federative Republic of Brazil E-I Euro 6.125%, 4/15/06 1,123 814 Federative Republic of Brazil New Money Bond 6.188%, 4/15/09 910 579 Federative Republic of Brazil New Money Bond 'L' 6.75%, 1/1/80 5,490 3,493 ----------- 38,335 ----------- - ------------------------------------------------------------------------------- BULGARIA (5.3%) SOVEREIGN (5.3%) (b)Republic of Bulgaria Discount Bond 'A' Euro 6.688%, 7/28/24 U.S.$ 8,900 U.S.$ 6,052 (c)Republic of Bulgaria Front Loaded Interest Reduction Bond 2.50%, 7/28/12 3,550 2,032 (c)Republic of Bulgaria Past Due Interest Bond 6.688%, 7/28/11 2,900 1,954 ----------- 10,038 ----------- - ------------------------------------------------------------------------------- COLOMBIA (5.5%) CORPORATE (0.3%) (b)Transtel 1.57%, 8/13/08 5,513 606 ----------- SOVEREIGN (5.2%) Republic of Colombia Global Euro 10.875%, 3/9/04 5,700 5,909 Republic of Colombia 8.82%, 8/13/05 4,320 3,964 ----------- 9,873 ----------- ----------- 10,479 ----------- - ------------------------------------------------------------------------------- ECUADOR (2.1%) CORPORATE (0.3%) Consorcio Ecuatorian Notes 14.00%, 5/1/02 1,410 585 (a)14.00%, 5/1/02 150 63 ----------- 648 ----------- SOVEREIGN (1.8%) (b)Republic of Ecuador Discount Bond 6.625%, 2/28/25 6,870 3,263 ----------- 3,911 ----------- - ------------------------------------------------------------------------------- INDIA (1.7%) CORPORATE (1.7%) (a)Reliance Industries Ltd. 10.375%, 6/24/16 2,520 2,250 Saurashtra Cement Ltd. 19.00%, 9/27/99 INR 40,000 898 ----------- 3,148 ----------- - ------------------------------------------------------------------------------- JORDAN (0.9%) SOVEREIGN (0.9%) Jordan Discount Bond (a,b)6.00%, 12/23/23 U.S.$ 2,147 1,202 (b)6.00%, 12/23/23 1,061 594 ----------- 1,796 ----------- - -------------------------------------------------------------------------------
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FACE AMOUNT VALUE (000) (000) - ------------------------------------------------------------------------------- KOREA (2.6%) QUASI-SOVEREIGN (2.6%) Export-Import Bank of Korea 6.50%, 2/10/02 U.S.$ 1,690 U.S.$ 1,630 Korea Electric Power Corp. 7.00%, 10/1/02 3,400 3,239 ----------- 4,869 ----------- - ------------------------------------------------------------------------------- MEXICO (21.3%) CORPORATE (0.9%) (a)Innova 12.875%, 4/1/07 530 440 (b)Petro Mexicanos 11.157%, 7/15/05 1,280 1,197 ----------- 1,637 ----------- SOVEREIGN (20.4%) (b)United Mexican States Discount Bond 'A' 6.594%, 12/31/19 4,320 3,683 (b)United Mexican States Discount Bond 'B' 6.477%, 12/31/19 2,350 2,003 (b)United Mexican States Discount Bond 'C' 6.617%, 12/31/19 1,800 1,534 (b)United Mexican States Discount Bond 'D' 6.602%, 12/31/19 3,750 3,197 United Mexican States Euro Bond 10.375%, 2/17/09 7,300 7,565 United Mexican States Global Bond 11.375%, 9/15/16 6,190 6,697 United Mexican States Par Bond 'W-A' 6.25%, 12/31/19 14,710 11,557 United Mexican States Par Bond 'W-B' 6.25%, 12/31/19 3,333 2,618 ----------- 38,854 ----------- 40,491 ----------- - ------------------------------------------------------------------------------- MOROCCO (1.0%) SOVEREIGN (1.0%) Morocco R&C 'A' 6.063%, 1/1/09 2,400 1,954 ----------- - ------------------------------------------------------------------------------- NIGERIA (1.0%) SOVEREIGN (1.0%) Central Bank of Nigeria Par Bond 6.25%, 11/15/20 1,500 941 Central Bank of Nigeria Promissory Note 3.586%, 1/5/10 2,320 963 ----------- 1,904 ----------- - ------------------------------------------------------------------------------- PANAMA (2.6%) SOVEREIGN (2.6%) Republic of Panama 9.375%, 4/1/29 U.S.$ 5,000 U.S.$ 4,999 ----------- - ------------------------------------------------------------------------------- PERU (2.3%) SOVEREIGN (2.3%) (c)Peru Past Due Interest Bond 4.00%, 3/7/17 2,820 1,800 Republic of Peru Front Loaded Interest Reduction Bond (c)3.25%, 3/7/17 3,950 2,350 (a,c)3.25%, 3/7/17 498 296 ----------- 4,446 ----------- - ------------------------------------------------------------------------------- PHILIPPINES (2.9%) SOVEREIGN (2.9%) (c)Republic of Philippines 'B' 5.962%, 6/1/08 6,290 5,567 ----------- - ------------------------------------------------------------------------------- RUSSIA (3.2%) SOVEREIGN (3.2%) (b)Russia Interest Arrears Notes 6.625%, 12/15/15 331 27 (b)Russia Principal Note, PIK 3.313%, 12/15/20 15,846 1,109 Russian Federation (a)8.75%, 7/24/05 6,940 1,752 (a)11.00%, 7/24/18 8,320 2,153 11.00%, 7/24/18 4,280 1,107 ----------- 6,148 ----------- - ------------------------------------------------------------------------------- TURKEY (1.8%) CORPORATE (1.8%) Cellco Finance NV (a)15.00%, 8/1/05 2,210 2,155 15.00%, 8/1/05 100 98 Pera Financial Services (a)9.375%, 10/15/02 1,130 960 9.375%, 10/15/02 250 212 ----------- 3,425 ----------- - ------------------------------------------------------------------------------- UNITED STATES (0.8%) CORPORATE (0.8%) (c)At Entertainment Inc. 0.00%, 2/1/09 3,550 1,580 ----------- - ------------------------------------------------------------------------------- VENEZUELA (2.3%) SOVEREIGN (2.3%) Republic of Venezuela Debt Conversion Bond 'DL' 6.625%, 12/18/07 4,929 3,465 - -------------------------------------------------------------------------------
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FACE AMOUNT VALUE (000) (000) - ------------------------------------------------------------------------------- VENEZUELA (CONTINUED) SOVEREIGN (CONTINUED) Republic of Venezuela Global Bond 9.25%, 9/15/27 U.S.$ 1,400 U.S.$ 860 ----------- 4,325 ----------- - ------------------------------------------------------------------------------- TOTAL DEBT INSTRUMENTS (Cost U.S.$183,647) 186,817 ----------- - ------------------------------------------------------------------------------- NO. OF RIGHTS - ------------------------------------------------------------------------------- RIGHTS (0.0%) - ------------------------------------------------------------------------------- MEXICO United Mexican States Value Recovery Rights, expiring 06/30/03 (Cost U.S.$--@) 15,338,000 -- ----------- - ------------------------------------------------------------------------------- NO. OF WARRANTS - ------------------------------------------------------------------------------- WARRANTS (0.0%) - ------------------------------------------------------------------------------- ARGENTINA (0.0%) Republic of Argentina (Cost U.S.$--) 10,500 29 ----------- - ------------------------------------------------------------------------------- FACE AMOUNT (000) - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS(1.8%) - ------------------------------------------------------------------------------- REPURCHASE AGREEMENT(1.8%) Chase Securities, Inc. 4.65%, dated 3/31/99, due 4/1/99, to be repurchased at U.S.$3,386, collateralized by U.S.$2,580 United States Treasury Bonds, 8.875%, due 8/15/17, valued at U.S.$3,414 (Cost U.S.$3,386) U.S.$ 3,386 3,386 ----------- - ------------------------------------------------------------------------------- TOTAL INVESTMENTS(100.0%) (Cost U.S.$187,033) 190,232 ----------- - ------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES Other Assets U.S.$ 19,772 Liabilities (51,257) (31,485) ------------- ----------- - ------------------------------------------------------------------------------- VALUE (000) - ------------------------------------------------------------------------------- NET ASSETS Applicable to 21,930,226 issued and outstanding U.S.$0.01 par value shares (100,000,000 shares authorized) U.S.$158,747 ------------ ------------ - ------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE U.S.$ 7.24 ------------ ------------ - -------------------------------------------------------------------------------
(a) -- 144A Security - certain conditions for public sale may exist. (b) -- Variable/floating rate security -- rate disclosed is as of March 31, 1999. (c) -- Step Bond -- coupon rate increases in increments to maturity. Rate disclosed is as of March 31, 1999. Maturity date disclosed is ultimate maturity. @ -- Amount is less than U.S.$500. PIK -- Payment-in-Kind. Income may be paid in additional securities or cash. 8 -----END PRIVACY-ENHANCED MESSAGE-----