-----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, BBgTgrv0l3eLvcvCoTqV/X1EdHZ/XUKsNE1ZXCrGndqcvexdY3Rq/Qt6gESCMc/K SH1jQXIy6SgLbyCkQrRqGg== 0000912057-01-542282.txt : 20020412 0000912057-01-542282.hdr.sgml : 20020412 ACCESSION NUMBER: 0000912057-01-542282 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN STANLEY DEAN WITTER ASIA PACIFIC FUND INC CENTRAL INDEX KEY: 0000919808 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-08388 FILM NUMBER: 1807837 BUSINESS ADDRESS: STREET 1: 1221 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10020 BUSINESS PHONE: 6175578742 MAIL ADDRESS: STREET 1: MORGAN STANLEY ASIA PACIFIC FUND STREET 2: 1221 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10020 FORMER COMPANY: FORMER CONFORMED NAME: MORGAN STANLEY ASIA INVESTMENT FUND INC DATE OF NAME CHANGE: 19940316 FORMER COMPANY: FORMER CONFORMED NAME: MORGAN STANLEY ASIA PACIFIC FUND INC DATE OF NAME CHANGE: 19940505 N-30B-2 1 a2062343zn-30b_2.txt N-30B-2 THIRD QUARTER REPORT [MORGAN STANLEY LOGO] Morgan Stanley Asia-Pacific Fund, Inc. SEPTEMBER 30, 2001 MORGAN STANLEY ASIA-PACIFIC FUND, INC. MORGAN STANLEY INVESTMENT MANAGEMENT INC. INVESTMENT ADVISER DIRECTORS AND OFFICERS Barton M. Biggs William G. Morton, Jr. CHAIRMAN OF THE BOARD OF DIRECTOR DIRECTORS Michael Nugent Ronald E. Robison DIRECTOR PRESIDENT AND DIRECTOR Fergus Reid John D. Barrett II DIRECTOR DIRECTOR Stefanie V. Chang Thomas P. Gerrity VICE PRESIDENT DIRECTOR Lorraine Truten Gerard E. Jones VICE PRESIDENT DIRECTOR Joseph P. Stadler Joseph J. Kearns VICE PRESIDENT AND TREASURER DIRECTOR Mary E. Mullin Vincent R. McLean SECRETARY DIRECTOR Belinda A. Brady C. Oscar Morong, Jr. ASSISTANT TREASURER DIRECTOR INVESTMENT ADVISER Morgan Stanley Investment Management Inc. 1221 Avenue of the Americas New York, New York 10020 ADMINISTRATOR JPMorgan Chase Bank 73 Tremont Street Boston, Massachusetts 02108 CUSTODIAN JPMorgan Chase Bank 3 Chase MetroTech Center Brooklyn, New York 11245 SHAREHOLDER SERVICING AGENT American Stock Transfer & Trust Company 40 Wall Street New York, New York 10005 (800) 278-4353 LEGAL COUNSEL Clifford Chance Rogers & Wells LLP 200 Park Avenue New York, New York 10166 INDEPENDENT AUDITORS Ernst & Young LLP 200 Clarendon Street Boston, Massachusetts 02116 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.morganstanley.com/im. MORGAN STANLEY ASIA-PACIFIC FUND, INC. OVERVIEW LETTER TO SHAREHOLDERS For the nine months ended September 30, 2001, the Morgan Stanley Asia-Pacific Fund, Inc. (the "Fund") had a total return, based on net asset value per share, of -26.06% compared to -24.25% for its benchmark (described below). For the period from the Fund's commencement of operations on August 2, 1994 through September 30, 2001, the Fund's cumulative total return, based on net asset value per share, was -31.00% compared with -45.51% for the benchmark. The benchmark for the Fund is comprised of two Morgan Stanley Capital International (MSCI) indices; Japan and All-Country Asia-Pacific Free ex-Japan, with each index weighted equally. On September 30, 2001, the closing price of the Fund's shares on the New York Stock Exchange was $6.30, representing a 21.3% discount to the Fund's net asset value per share. MARKET OVERVIEW AND OUTLOOK ASIA EX-JAPAN In the third quarter of 2001, Asia ex-Japan equities fell sharply along with global equity markets in the aftermath of the September 11 attacks in the U.S. During the month of September alone, most Asia ex-Japan markets posted double-digit declines, making the third quarter the worst quarter for 2001 so far. However, relative to other developed international markets, most Asian markets have outperformed year-to-date. Asian markets were led lower earlier in the third quarter, due to concerns over downward revisions in corporate earnings, particularly in telecommunication and technology stocks. In the short-term, we remain cautious as global economic growth slows further and risk aversion increases. We believe the significant negative shock to consumer demand caused by the tragic events of September 11 will result in a recession in the U.S. and throughout the world during the second half of 2001. We expect U.S. consumption to eventually improve, fueled by the low interest rate environment and an expected pick-up in government spending. As global economies strengthen, export-oriented Asian ex-Japan markets' trade balances and economies should also improve. With valuations near their lows of the crisis in 1998, we believe the Asian ex-Japan markets are near their troughs. JAPAN With respect to Japan, an important aspect of our current strategy is the more defensive asset play we have begun to adopt in the Fund. Japan is in a particularly important juncture as we begin the second half of the domestic fiscal year ending March 2002. First, accounting principles are now changing to "mark-to-market" from book value accounting, allowing for greater balance sheet transparency. Second, in our opinion, Japanese banks in the current global and domestic economic environment appear to have zero tolerance for non-performing loans. In light of these assumptions, we are using rallies in the market to trade into higher quality names with measurable high quality balance sheets and look to companies with strong cash positions, strong brand and higher than average liquidity. Finally, the huge intervention by the BOJ, yield gap between JGB's and equities and historically low price to book ratios suggests the Japanese equity market may be poised to trade higher towards year-end 2001. OTHER DEVELOPMENTS On January 23, 1998, the Fund commenced a share repurchase program for purposes of enhancing shareholder value and reducing the discount at which the Fund's shares trade from their net asset value. For the nine months ended September 30, 2001, there were no repurchases of Fund shares. From the inception of the program through September 30, 2001, the Fund has repurchased 14,225,634 of its shares at an average discount of 20.72% from net asset value per share. The Fund expects to continue to repurchase its outstanding shares at such time and in such amounts as it believes will further the accomplishment of the foregoing objectives, subject to review by the Board of Directors. Sincerely, /s/ Ronald E. Robison Ronald E. Robison PRESIDENT AND DIRECTOR October 2001 ON OCTOBER 18, 2001, THE FUND'S BY-LAWS WERE AMENDED TO CHANGE THE RETIREMENT AGE FOR DIRECTORS TO 72 FROM 73. THE FUND ALSO ADOPTED A NON-FUNDAMENTAL POLICY THAT, UNDER NORMAL CIRCUMSTANCES, AT LEAST 80% OF ITS ASSETS WILL BE INVESTED IN EQUITY SECURITIES OF ASIAN-PACIFIC ISSUERS OR IN DEBT SECURITIES ISSUED OR GUARANTEED BY ASIAN-PACIFIC GOVERNMENTS OR GOVERNMENTAL ENTITIES. 2 MORGAN STANLEY ASIA-PACIFIC FUND, INC. SEPTEMBER 30, 2001 (UNAUDITED) INVESTMENT SUMMARY HISTORICAL INFORMATION
TOTAL RETURN (%) ------------------------------------------------------------------------------- MARKET VALUE(1) NET ASSET VALUE(2) INDEX(3) ------------------------------------------------------------------------------- AVERAGE AVERAGE AVERAGE CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL ---------- ------- ---------- ------- ---------- ------- Year to Date -27.48% -- -26.06% -- -24.25% -- One Year -31.84 -31.84% -36.68 -36.68% -33.56 -33.56% Five Year -38.64 -9.31 -33.12 -7.73 -44.56 -11.13 Since Inception* -45.66 -8.16 -31.00 -5.05 -45.51 -8.13
Past performance is not predictive of future performance. [CHART] RETURNS AND PER SHARE INFORMATION
YEAR ENDED DECEMBER 31, NINE MONTHS ------------------------------------------------------------------------------ ENDED SEPTEMBER 30, 1994* 1995 1996 1997 1998 1999 2000 2001 - ---------------------------------------------------------------------------------------------------------------------------- Net Asset Value Per Share $ 13.20 $ 14.34 $ 11.95 $ 8.77 $ 8.73 $ 15.26 $ 10.82 $ 8.00 - ---------------------------------------------------------------------------------------------------------------------------- Market Value Per Share $ 12.25 $ 13.33 $ 9.75 $ 7.44 $ 7.00 $ 11.81 $ 8.69 $ 6.30 - ---------------------------------------------------------------------------------------------------------------------------- Premium/(Discount) -7.2% -7.0% -18.4% -15.2% -19.8% -22.6% -19.7% -21.3% - ---------------------------------------------------------------------------------------------------------------------------- Income Dividends $ 0.04 $ 0.05 $ 0.61 $ 0.02 $ 0.01 $ 0.04 $ 0.22 -- - ---------------------------------------------------------------------------------------------------------------------------- Capital Gains Distributions $ 0.01 $ 0.02 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Fund Total Return(2) -5.94% 9.24% -2.87%+ -26.36% -0.34% 75.39% -27.37% -26.06% - ---------------------------------------------------------------------------------------------------------------------------- Index Total Return(3) -5.24% 2.88% -3.63% -29.55% -0.30% 54.79% -29.59% -24.25% - ----------------------------------------------------------------------------------------------------------------------------
(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 benchmark for investment performance is comprised of two Morgan Stanley Capital International (MSCI) indices; Japan and All-Country Asia-Pacific Free ex-Japan with each index weighted equally. * The Fund commenced operations on August 2, 1994. + This return does not include the effect of the rights issued in connection with the Rights Offering. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. 3 PORTFOLIO SUMMARY [CHART] ALLOCATION OF TOTAL INVESTMENTS EQUITY SECURITIES 97.5% SHORT-TERM INVESTMENTS 2.5
[CHART] INDUSTRIES BANKS 7.8% HOUSEHOLD DURABLES 7.4 ELECTRONIC EQUIPMENT & INSTRUMENTS 6.1 SEMICONDUCTOR EQUIPMENT & PRODUCT 6.1 MACHINERY 5.7 COMPUTERS & PERIPHERALS 5.2 PHARMACEUTICALS 4.4 METALS & MINING 4.1 CHEMICALS 4.0 REAL ESTATE 4.0 OTHER 45.2
[CHART] COUNTRY WEIGHTINGS JAPAN 48.3% CHINA / HONG KONG 12.3 AUSTRALIA 10.0 SOUTH KOREA 9.3 TAIWAN 7.6 SINGAPORE 5.4 INDIA 4.0 MALAYSIA 0.7 OTHER 2.4
TEN LARGEST HOLDINGS
PERCENT OF NET ASSETS - ---------------------------------------------------------------------------- 1. Samsung Electronics Co., Ltd. (South Korea) 1.9% 2. Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan) 1.9 3. Nintendo Co., Ltd. (Japan) 1.8 4. Hutchison Whampoa Ltd. (China/Hong Kong) 1.8 5. SK Telecom Co., Ltd. (South Korea) 1.7 6. Ricoh Co., Ltd. (Japan) 1.6 7. Fuji Photo Film Co., Ltd. (Japan) 1.6 8. BHP Billiton Ltd. (Australia) 1.5 9. China Mobile (Hong Kong) Ltd. (China/Hong Kong) 1.4 10. Hitachi Credit Corp. (Japan) 1.4 ------ 16.6% ======
4 MORGAN STANLEY ASIA-PACIFIC FUND, INC. STATEMENT OF NET ASSETS SEPTEMBER 30, 2001 (UNAUDITED) STATEMENT OF NET ASSETS
VALUE SHARES (000) - ------------------------------------------------------------------------ COMMON STOCKS (96.7%) (Unless otherwise noted) ======================================================================== AUSTRALIA (10.0%) AIRLINES Qantas Airlines Ltd. 961,400 $ 1,469 - ------------------------------------------------------------------------ BANKS Australia & New Zealand Banking Group Ltd. 68,200 537 Commonwealth Bank of Australia 95,900 1,234 National Australia Bank Ltd. 209,400 2,649 Westpac Banking Corp., Ltd. 279,650 1,832 - ------------------------------------------------------------------------ 6,252 - ------------------------------------------------------------------------ BEVERAGES Foster's Brewing Group Ltd. 938,750 2,309 - ------------------------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES Brambles Industries Ltd. 341,651 1,728 Computershare Ltd. 151,600 332 - ------------------------------------------------------------------------ 2,060 - ------------------------------------------------------------------------ DIVERSIFIED TELECOMMUNICATION SERVICES Telstra Corp., Ltd. 1,027,150 2,653 - ------------------------------------------------------------------------ ELECTRONIC EQUIPMENT & INSTRUMENTS ERG, Ltd. 745,880 213 - ------------------------------------------------------------------------ HEALTH CARE EQUIPMENT & SUPPLIES Resmed Inc. 85,900 450 - ------------------------------------------------------------------------ HEALTH CARE PROVIDERS & SERVICES Sonic Healthcare Ltd. 169,200 667 - ------------------------------------------------------------------------ MEDIA News Corp., Ltd. 648,400 3,963 - ------------------------------------------------------------------------ METALS & MINING BHP Billiton Ltd. 1,149,628 4,863 MIM Holdings Ltd. 1,118,100 463 Normandy Mining Ltd. 1,749,100 1,164 Rio Tinto Ltd. 310,950 4,790 - ------------------------------------------------------------------------ 11,280 - ------------------------------------------------------------------------ PHARMACEUTICALS CSL Ltd. 87,610 1,941 - ------------------------------------------------------------------------ REAL ESTATE Lend Lease Corp., Ltd. 137,250 748 - ------------------------------------------------------------------------ TRANSPORTATION INFRASTRUCTURE Lang Corp., Ltd. 70,250 370 - ------------------------------------------------------------------------ 34,375 ======================================================================== CHINA/HONG KONG (12.3%) AUTOMOBILES Denway Motors Ltd. 2,745,900 730 - ------------------------------------------------------------------------ BANKS Bank of East Asia 138,000 275 Hang Seng Bank Ltd. 221,900 2,298 - ------------------------------------------------------------------------ 2,573 - ------------------------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES Greencool Technology Holdings Ltd. 1,250,000 417 - ------------------------------------------------------------------------ DISTRIBUTORS China Resources Enterprise Ltd. 236,000 206 Li & Fung Ltd. 2,020,000 1,916 - ------------------------------------------------------------------------ 2,122 - ------------------------------------------------------------------------ DIVERSIFIED FINANCIALS Hong Kong Exchanges and Clearing Ltd. 576,000 694 Swire Pacific Ltd. 'A' 484,600 1,824 Wharf Holdings Ltd. 126,000 209 - ------------------------------------------------------------------------ 2,727 - ------------------------------------------------------------------------ ELECTRIC UTILITIES CLP Holdings Ltd. 202,200 778 - ------------------------------------------------------------------------ ELECTRICAL EQUIPMENT Johnson Electric Holdings Ltd. 1,316,000 1,198 - ------------------------------------------------------------------------ GAS UTILITIES Hong Kong & China Gas Co., Ltd. 1,709,950 2,138 - ------------------------------------------------------------------------ INDUSTRIAL CONGLOMERATES China Merchants Holdings International Co., Ltd. 578,000 341 Citic Pacific Ltd. 580,000 1,093 Hutchison Whampoa Ltd. 831,950 6,187 - ------------------------------------------------------------------------ 7,621 - ------------------------------------------------------------------------ MEDIA Asia Satellite Telecommunications Holdings Ltd. 287,000 375 Television Broadcasts Ltd. 198,000 537 - ------------------------------------------------------------------------ 912 - ------------------------------------------------------------------------ METALS & MINING Yanzhou Coal Mining Co., Ltd. 1,644,000 495 - ------------------------------------------------------------------------ OIL & GAS China Petroleum & Chemical Corp. 2,486,000 348 CNOOC Ltd. 1,821,000 1,821 PetroChina Company Ltd. 4,340,000 829 - ------------------------------------------------------------------------ 2,998 - ------------------------------------------------------------------------ 5 VALUE SHARES (000) - ------------------------------------------------------------------------ REAL ESTATE Amoy Properties Ltd. 409,000 $ 396 Cheung Kong (Holdings) Ltd. 310,000 2,415 Henderson Land Development Co., Ltd. 146,000 478 New World Development Co., Ltd. 987,000 664 Sino Land Co., Ltd. 428,000 119 Sun Hung Kai Properties Ltd. 724,000 4,614 - ------------------------------------------------------------------------ 8,686 - ------------------------------------------------------------------------ SOFTWARE Travelsky Technology Ltd. 710,000 478 - ------------------------------------------------------------------------ SPECIALTY RETAIL Esprit Holdings Ltd. 1,261,000 1,196 Giordano International Ltd. 760,000 344 - ------------------------------------------------------------------------ 1,540 - ------------------------------------------------------------------------ WIRELESS TELECOMMUNICATION SERVICES China Mobile (Hong Kong) Ltd. ADR 1,522,000 4,839 China Unicom Ltd. 1,062,000 1,144 SmarTone Telecommunications Holdings Ltd. 1,043,000 1,110 - ------------------------------------------------------------------------ 7,093 - ------------------------------------------------------------------------ 42,506 ======================================================================== INDIA (3.3%) AUTOMOBILES Hero Honda Motors Ltd. 178,805 696 - ------------------------------------------------------------------------ BANKS HDFC Bank Ltd. ADR 53,200 734 State Bank of India Ltd. 170,035 586 - ------------------------------------------------------------------------ 1,320 - ------------------------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES Aptech Ltd. 109,800 81 - ------------------------------------------------------------------------ COMMUNICATIONS EQUIPMENT Sterlite Optical Technologies Ltd. 185,150 406 - ------------------------------------------------------------------------ DIVERSIFIED TELECOMMUNICATION SERVICES Mahanagar Telephone Nigam Ltd. 337,127 906 Videsh Sanchar Nigam Ltd. 151,430 671 - ------------------------------------------------------------------------ 1,577 - ------------------------------------------------------------------------ ELECTRIC UTILITIES Tata Power Co., Ltd. 20,005 42 - ------------------------------------------------------------------------ ELECTRICAL EQUIPMENT Bharat Heavy Electricals Ltd. 197,937 495 - ------------------------------------------------------------------------ HOUSEHOLD PRODUCTS Colgate-Palmolive (India) Ltd. 59,000 194 - ------------------------------------------------------------------------ IT CONSULTING & SERVICES Digital Equipment (India) Ltd. 61,622 299 HCL Technologies Ltd. 145,170 394 Infosys Technologies Ltd. 47,850 2,379 SSI Ltd., GDR 105,000 26 Wipro Ltd. 23,000 507 - ------------------------------------------------------------------------ 3,605 - ------------------------------------------------------------------------ MEDIA Zee Telefilms Ltd. 125,000 228 - ------------------------------------------------------------------------ METALS & MINING Tata Iron & Steel Co., Ltd. 1,910 3 - ------------------------------------------------------------------------ OIL & GAS Bharat Petroleum Corp., Ltd. 78,300 262 Hindustan Petroleum Corp., Ltd. 80,000 208 - ------------------------------------------------------------------------ 470 - ------------------------------------------------------------------------ PHARMACEUTICALS Cipla Ltd. 10,735 252 Dr. Reddy's Laboratories Ltd. 32,992 1,231 - ------------------------------------------------------------------------ 1,483 - ------------------------------------------------------------------------ TOBACCO ITC Ltd. 67,900 819 - ------------------------------------------------------------------------ 11,419 ======================================================================== JAPAN (48.3%) AUTO COMPONENTS Nifco, Inc. 230,000 2,551 - ------------------------------------------------------------------------ AUTOMOBILES Nissan Motor Co., Ltd. 780,000 3,244 Suzuki Motor Corp. 379,000 3,663 Toyota Motor Corp. 144,000 3,688 - ------------------------------------------------------------------------ 10,595 - ------------------------------------------------------------------------ BANKS Mitsubishi Tokyo Financial Group, Inc. 85 662 - ------------------------------------------------------------------------ BUILDING PRODUCTS Sanwa Shutter Corp., Ltd. 302,000 746 - ------------------------------------------------------------------------ CHEMICALS Daicel Chemical Industries Ltd. 840,000 2,327 Denki Kagaku Kogyo Kabushiki Kaisha 600,000 1,205 Kaneka Corp. 549,000 3,529 Lintec Corp. 240,000 1,741 Mitsubishi Chemical Corp. 894,000 1,893 Shin-Etsu Polymer Co., Ltd. 450,000 1,646 - ------------------------------------------------------------------------ 12,341 - ------------------------------------------------------------------------ 6 VALUE SHARES (000) - ------------------------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES Dai Nippon Printing Co., Ltd. 313,000 $ 3,135 Nissha Printing Co., Ltd. 63,000 321 - ------------------------------------------------------------------------ 3,456 - ------------------------------------------------------------------------ COMPUTERS & PERIPHERALS Fujitsu Ltd. 538,000 4,498 Mitsumi Electric Co., Ltd. 226,000 2,459 NEC Corp. 418,000 3,404 Toshiba Corp. 1,086,000 4,144 - ------------------------------------------------------------------------ 14,505 - ------------------------------------------------------------------------ CONSTRUCTION & ENGINEERING Kurita Water Industries Ltd. 327,000 3,968 Obayashi Corp. 100,000 462 - ------------------------------------------------------------------------ 4,430 - ------------------------------------------------------------------------ DIVERSIFIED FINANCIALS Hitachi Credit Corp. 237,900 4,798 - ------------------------------------------------------------------------ DIVERSIFIED TELECOMMUNICATION SERVICES Nippon Telephone & Telegraph Corp. 934 4,346 - ------------------------------------------------------------------------ ELECTRIC UTILITIES Tokyo Electric Power Co., Inc. 100,000 2,486 - ------------------------------------------------------------------------ ELECTRICAL EQUIPMENT Furakawa Electric Co., Ltd. 278,000 1,507 Kyudenko Co. 290,000 1,005 - ------------------------------------------------------------------------ 2,512 - ------------------------------------------------------------------------ ELECTRONIC EQUIPMENT & INSTRUMENTS Hitachi Ltd. 700,000 4,645 Kyocera Corp. 70,000 4,558 Nissei Sangyo Co., Ltd. 95,000 1,222 Ryosan Co., Ltd. 143,000 1,703 TDK Corp. 90,000 3,766 - ------------------------------------------------------------------------ 15,894 - ------------------------------------------------------------------------ FOOD & DRUG RETAILING FamilyMart Co., Ltd. 142,200 2,749 - ------------------------------------------------------------------------ FOOD PRODUCTS House Foods Corp. 111,000 1,207 Nippon Meat Packers, Inc. 178,000 1,671 - ------------------------------------------------------------------------ 2,878 - ------------------------------------------------------------------------ HOUSEHOLD DURABLES Aiwa Co., Ltd. 157,600 390 Casio Computer Co., Ltd. 450,000 2,493 Matsushita Electric Industrial Co., Ltd. 367,000 4,484 Nintendo Co., Ltd. 44,000 6,301 Rinnai Corp. 103,700 2,113 Sangetsu Co., Ltd. 17,000 242 Sekisui Chemical Co., Ltd. 443,000 1,261 Sekisui House Ltd. 390,000 3,084 Sony Corp. 103,000 3,784 - ------------------------------------------------------------------------ 24,152 - ------------------------------------------------------------------------ LEISURE EQUIPMENT & PRODUCTS Fuji Photo Film Co., Ltd. 151,000 5,181 Yamaha Corp. 292,000 2,102 - ------------------------------------------------------------------------ 7,283 - ------------------------------------------------------------------------ MACHINERY Amada Co., Ltd. 592,000 2,874 Daifuku Co., Ltd. 623,000 2,529 Daikin Industries Ltd. 279,000 3,934 Fuji Machine Manufacturing Co., Ltd. 186,000 2,537 Fujitec Co., Ltd. 170,000 610 Minebea Co., Ltd. 500,000 2,574 Mitsubishi Heavy Industries Ltd. 932,000 3,221 Tsubakimoto Chain Co. 532,000 1,273 - ------------------------------------------------------------------------ 19,552 - ------------------------------------------------------------------------ MARINE Mitsubishi Logistics Corp. 135,000 1,263 - ------------------------------------------------------------------------ OFFICE ELECTRONICS Canon, Inc. 164,000 4,488 Ricoh Co., Ltd. 351,000 5,270 - ------------------------------------------------------------------------ 9,758 - ------------------------------------------------------------------------ PHARMACEUTICALS Ono Pharmaceutical Co., Ltd. 128,000 4,017 Sankyo Co., Ltd. 190,000 3,347 Yamanouchi Pharmaceutical Co., Ltd. 159,000 4,258 - ------------------------------------------------------------------------ 11,622 - ------------------------------------------------------------------------ REAL ESTATE Mitsubishi Estate Co., Ltd. 332,000 3,284 - ------------------------------------------------------------------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS Rohm Co., Ltd. 28,000 2,718 - ------------------------------------------------------------------------ 7 VALUE SHARES (000) - ------------------------------------------------------------------------ TRADING COMPANIES & DISTRIBUTORS Mitsubishi Corp. 155,000 $ 1,105 Nagase & Co., Ltd. 197,000 805 - ------------------------------------------------------------------------ 1,910 - ------------------------------------------------------------------------ 166,491 ======================================================================== MALAYSIA (0.7%) HOTELS RESTAURANTS & LEISURE Magnum Corp. Bhd 1,678,000 852 - ------------------------------------------------------------------------ TOBACCO British American Tobacco (Malaysia) Bhd 190,000 1,738 - ------------------------------------------------------------------------ 2,590 ======================================================================== SINGAPORE (5.4%) AEROSPACE & DEFENSE SIA Engineering Co., Ltd. 544,000 314 Singapore Technologies Engineering Ltd. 777,000 959 - ------------------------------------------------------------------------ 1,273 - ------------------------------------------------------------------------ AIRLINES Singapore Airlines Ltd. 328,000 1,486 - ------------------------------------------------------------------------ BANKS DBS Group Holdings Ltd. 364,979 1,995 Oversea-Chinese Banking Corp., Ltd. 596,700 3,193 Overseas Union Bank Ltd. 289,210 1,580 United Overseas Bank Ltd. 409,000 2,223 - ------------------------------------------------------------------------ 8,991 - ------------------------------------------------------------------------ DIVERSIFIED FINANCIALS Keppel Corp., Ltd. 466,000 755 - ------------------------------------------------------------------------ DIVERSIFIED TELECOMMUNICATION SERVICES Singapore Telecommunications Ltd. 654,000 670 - ------------------------------------------------------------------------ ELECTRONIC EQUIPMENT & INSTRUMENTS Venture Manufacturing (Singapore) Ltd. 419,000 2,076 - ------------------------------------------------------------------------ MEDIA Singapore Press Holdings Ltd. 149,600 1,339 - ------------------------------------------------------------------------ REAL ESTATE Capitaland, Ltd. 651,000 490 City Developments Ltd. 240,000 568 - ------------------------------------------------------------------------ 1,058 - ------------------------------------------------------------------------ TRANSPORTATION INFRASTRUCTURE Sembcorp Logisitics Corp. 860,800 877 - ------------------------------------------------------------------------ 18,525 ======================================================================== SOUTH KOREA (9.1%) AUTO COMPONENTS Hyundai Mobis 134,920 1,143 - ------------------------------------------------------------------------ AUTOMOBILES Hyundai Motor Co., Ltd. 150,650 1,941 - ------------------------------------------------------------------------ BANKS H&CB 51,951 1,116 Hana Bank 107,250 748 Kookmin Bank 43,581 538 Shinhan Bank 216,770 1,642 - ------------------------------------------------------------------------ 4,044 - ------------------------------------------------------------------------ CONSTRUCTION & ENGINEERING LG Engineering & Construction Co., Ltd. 113,090 1,054 - ------------------------------------------------------------------------ DIVERSIFIED FINANCIALS Kookmin Credit Card Co., Ltd. 23,670 596 LG Securities Co. 66,700 393 Samsung Securities Co., Ltd. 23,640 516 - ------------------------------------------------------------------------ 1,505 - ------------------------------------------------------------------------ DIVERSIFIED TELECOMMUNICATION SERVICES Korea Telecom Corp. ADR 122,300 2,237 - ------------------------------------------------------------------------ ELECTRIC UTILITIES Korea Electric Power Corp. 39,330 633 Korea Electric Power Corp. ADR 121,200 1,073 - ------------------------------------------------------------------------ 1,706 - ------------------------------------------------------------------------ ELECTRONIC EQUIPMENT & INSTRUMENTS Samsung Electro Mechanics Co., Ltd. 34,821 664 - ------------------------------------------------------------------------ FOOD PRODUCTS Tongyang Confectionery Corp. 24,610 454 - ------------------------------------------------------------------------ HOUSEHOLD DURABLES Humax Co., Ltd. 82,320 1,199 - ------------------------------------------------------------------------ HOUSEHOLD PRODUCTS LG Household & Health Care Ltd. 17,100 367 - ------------------------------------------------------------------------ MEDIA Cheil Communications, Inc. 15,140 1,069 - ------------------------------------------------------------------------ METALS & MINING Pohang Iron & Steel Co., Ltd. 17,720 1,096 Pohang Iron & Steel Co., Ltd. ADR 38,900 611 - ------------------------------------------------------------------------ 1,707 - ------------------------------------------------------------------------ MULTILINE RETAIL Shinsegae Co Ltd 4,400 310 - ------------------------------------------------------------------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS Samsung Electronics Co., Ltd. 55,827 5,994 - ------------------------------------------------------------------------ 8 VALUE SHARES (000) - ------------------------------------------------------------------------ WIRELESS TELECOMMUNICATION SERVICES SK Telecom Co., Ltd. 18,840 $ 3,005 SK Telecom Co., Ltd. ADR 160,600 2,962 - ------------------------------------------------------------------------ 5,967 - ------------------------------------------------------------------------ 31,361 ======================================================================== TAIWAN (7.6%) BANKS Bank Sinopac 935,000 352 Chinatrust Commercial Bank 3,023,480 1,542 Taipei Bank 356,300 171 Taishin International Bank 2,308,241 866 - ------------------------------------------------------------------------ 2,931 - ------------------------------------------------------------------------ COMMUNICATIONS EQUIPMENT Accton Technology Corp. 639,000 754 - ------------------------------------------------------------------------ COMPUTERS & PERIPHERALS Ambit Microsystems Corp. 201,191 650 Asustek Computer, Inc. 453,800 1,361 Quanta Computer, Inc. 715,000 1,336 - ------------------------------------------------------------------------ 3,347 - ------------------------------------------------------------------------ ELECTRONIC EQUIPMENT & INSTRUMENTS Acer Display Technology Inc 864,000 378 Hon Hai Precision Industry Co., Ltd. 609,632 1,926 - ------------------------------------------------------------------------ 2,304 - ------------------------------------------------------------------------ FOOD & DRUG RETAILING President Chain Store Corp. 426,226 809 - ------------------------------------------------------------------------ FOOD PRODUCTS Uni-President Enterprises Co. 1,365,920 471 - ------------------------------------------------------------------------ INSURANCE Cathay Life Insurance Co., Ltd. 504,000 520 Fubon Insurance Co. 844,000 650 - ------------------------------------------------------------------------ 1,170 - ------------------------------------------------------------------------ METALS & MINING China Steel Corp. 1,842,670 649 - ------------------------------------------------------------------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS ASE Test Ltd. 48,300 372 Faraday Technology Corp. 75,600 235 Realtek Semiconductor Corp. 197,500 538 Siliconware Precision Industries Co. 1,783,248 884 Sunplus Technology Co., Ltd. 226,450 430 Taiwan Semiconductor Manufacturing Co., Ltd. 4,846,168 6,558 United Microelectronics Corp. 4,173,910 3,253 - ------------------------------------------------------------------------ 12,270 - ------------------------------------------------------------------------ TEXTILES & APPAREL Far Eastern Textile Ltd. 44,220 14 Far Eastern Textile Ltd. GDR 6,729 20 Formosa Chemicals & Fibre Corp. 981,440 600 - ------------------------------------------------------------------------ 634 - ------------------------------------------------------------------------ WIRELESS TELECOMMUNICATION SERVICES Taiwan Cellular Corp. 770,426 824 - ------------------------------------------------------------------------ 26,163 ======================================================================== TOTAL COMMON STOCKS (Cost $449,407) 333,430 ======================================================================== PREFERRED STOCK (0.2%) ======================================================================== SOUTH KOREA (0.2%) SEMICONDUCTOR EQUIPMENT & PRODUCTS Samsung Electronics Co., Ltd. (Preferred) (Cost $1,657) 14,240 643 ======================================================================== INVESTMENT COMPANIES (0.7%) ======================================================================== INDIA (0.7%) Morgan Stanley Growth Fund (Cost $3,233) 17,158,100(a) 2,349 ======================================================================== FACE AMOUNT (000) - ------------------------------------------------------------------------ SHORT-TERM INVESTMENTS (2.2%) ======================================================================== UNITED STATES (2.2%) REPURCHASE AGREEMENT J.P. Morgan Chase Securities, Inc., 2.50%, dated 9/28/01, due 10/1/01 (Cost $7,558) 7,558 7,558 ======================================================================== FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN(0.3%) ======================================================================== Australian Dollar AUD 97 48 Hong Kong Dollar HKD 116 15 Indian Rupee INR 248 5 Japanese Yen JPY 4,447 37 Taiwan Dollar TWD 23,937 694 New Zealand Dollar NZD --@ --@ South Korean Won KRW 244,957 188 - ------------------------------------------------------------------------ TOTAL FOREIGN CURRENCY (Cost $987) 987 ======================================================================== 9 AMOUNT VALUE (000) (000) - ------------------------------------------------------------------------ TOTAL INVESTMENTS (100.1%) (Cost $462,842) $ 344,967 ======================================================================== OTHER ASSETS AND LIABILITIES (-0.1%) ======================================================================== Other Assets $ 2,016 Liabilities (2,229) (213) ======================================================================== NET ASSETS (100%) Applicable to 43,071,656 issued and outstanding $ 0.01 par value shares (100,000,000 shares authorized) $ 344,754 ======================================================================== NET ASSET VALUE PER SHARE $ 8.00 ========================================================================
(a) -- The repurchase agreement is fully collateralized by U.S. government and/or agency obligations based on market prices at the date of this statement of net assets. The investment in the repurchase agreement is through participation in a joint account with affiliated funds. ADR- American Depositary Receipt @--Value is less than $500
======================================================================== SEPTEMBER 30, 2001 EXCHANGE RATES: - ------------------------------------------------------------------------ AUD Australian Dollar 2.029 = $1.00 HKD Hong Kong Dollar 7.799 = $1.00 INR Indian Rupee 47.850 = $1.00 JPY Japanese Yen 119.490 = $1.00 TWD Taiwan Dollar 1303.999 = $1.00 NZD New Zealand Dollar 2.453 = $1.00 KRW South Korean Won 34.510 = $1.00 - ------------------------------------------------------------------------
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