-----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, KrGriL499F2wvu2dhuVscSEymOmV3v7AQB1HhgEU2ItWDV+YbzIWfhnzdf9Sel4J fYaQoRBlAz9RFYh4FPn9dw== 0000912057-02-023138.txt : 20020607 0000912057-02-023138.hdr.sgml : 20020607 20020605142351 ACCESSION NUMBER: 0000912057-02-023138 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020605 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN STANLEY DEAN WITTER ASIA PACIFIC FUND INC CENTRAL INDEX KEY: 0000919808 IRS NUMBER: 000000000 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: 02670826 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 PACIFIC FUND INC DATE OF NAME CHANGE: 19940505 FORMER COMPANY: FORMER CONFORMED NAME: MORGAN STANLEY ASIA INVESTMENT FUND INC DATE OF NAME CHANGE: 19940316 N-30B-2 1 a2080671zn-30b_2.txt N-30B-2 FIRST QUARTER REPORT MARCH 31, 2002 [MORGAN STANLEY LOGO] MORGAN STANLEY ASIA-PACIFIC FUND, INC. MORGAN STANLEY INVESTMENT MANAGEMENT INC. INVESTMENT ADVISER MORGAN STANLEY ASIA-PACIFIC FUND, INC. DIRECTORS AND OFFICERS Barton M. Biggs William G. Morton, Jr. CHAIRMAN OF THE DIRECTOR BOARD OF 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 James W. Garrett Joseph J. Kearns 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 three months ended March 31, 2002, the Morgan Stanley Asia-Pacific Fund, Inc. (the "Fund") had a total return, based on net asset value per share, of 9.31% compared with 5.58% for its benchmark. The benchmark for the Fund is comprised of two Morgan Stanley Capital International (MSCI) indices; Japan Net and All-Country Asia-Pacific Free ex-Japan Net, with each index weighted equally. On March 31, 2002, the closing price of the Fund's shares on the New York Stock Exchange was $8.50 representing a 15.8% discount to the Fund's net asset value per share. MARKET REVIEW ASIA EX JAPAN Asian ex-Japan equities continued to outperform other asset classes posting double-digit returns during the first quarter of 2002 despite continued weakness in developed international markets. Overall Asia's performance was supported by increasing evidence of a U.S. led economic recovery and some improvements in regional economic data. South Korea was the best performing large market in Asia in the first quarter of 2002 based on improving bottom-up fundamentals, domestic liquidity flow into equities on increasing risk appetite and lower rates, and higher than expected domestic consumption growth. In the first quarter, we reduced our exposure to telecoms and media based on overhang issues and valuations. We marginally increased our exposure to China by focussing on mid capitalization stocks offering strong earnings visibility. In Hong Kong, we have increased weightings in the real estate sector. We think that current valuations in the property sector offer a reasonable upside on a 6-12 month view, despite disappointing earnings announcements from some companies. JAPAN Although short sale restriction may have triggered the rally in Japanese equities during the first quarter, there are also emerging signs of a modest cyclical recovery supported by inventory adjustments, industrial production, a weaker currency and better than expected economic data from the United States. While the macro environment remains weak and political uncertainties are causing investors to question sustained leadership for reform, Japan appears to be at a cyclical trough and therefore this may support a continued rally as previous such cycles have resulted in respectable gains in the Japanese market every three years or so over the last decade. However, concerns remain, including weak consumption due to wages being kept under control, excess capacity in Japan, and unlike previous cycles authorities are not using fiscal policy to boost the economy. Over the last several months the Fund has reduced (modestly) holdings in technology and added positions in asset plays and those securities which we believe will benefit from "mark-to-market" accounting changes beginning in April 2002. Although we still question the income statements of high tech companies due to the duration and magnitude of the global economy recovery, these securities are attractive from a balance sheet perspective - low book value and strong cash flows. In addition, we believe that although the macro outlook remains questionable, a select group of Japanese companies are re-inventing themselves by boosting sales, profitability and productivity of capital and labor. MARKET OUTLOOK In Asia ex Japan, we believe that a near-term trading environment is likely. Nevertheless, this does not change our positive long-term view given strong liquidity, cheap valuations and corporate restructuring. These components should continue to support earnings growth and select markets within the Asian ex-Japan universe. In our opinion, a cyclical bottom is forming in the U.S. and as a result we maintain our global view that the turnaround in growth (and thus Asian ex-Japan) has begun. Although the recovery is likely to be anemic, we believe there will be pockets of opportunity. Domestic demand in South Korea and China will likely hold up and this should provide us with some stock opportunities. We continue to increase weightings in South Korea, especially in the consumer and auto sectors. Export dominated economies like Singapore and Taiwan are likely to show improvement in 2002. We are focusing on earnings visibility as a driver of medium-term returns. Looking forward in Japan, of particular importance and perhaps the catalyst for the next wave of buying Japanese shares maybe the earnings estimates provided by Japanese companies in early May for fiscal year ending March 2003. Together with the restructuring effects of the last few years, should these estimates be better than consensus it may support our view that a cyclical rally in Japanese shares is not yet fully discounted and will continue for longer than most observers currently believe. This together with underweight positions in Japan for most portfolios should lead to a much improved supply and demand equation. 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 traded from their net asset value. During the three months ended March 31, 2002, the Fund repurchased 571,700 of its shares at an average discount of 16.42% from net asset value per share. Since the inception of the program, the Fund has repurchased 14,886,634 of its shares at an average discount of 20.57% 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. On December 13, 2001, the Board of Directors of the Fund authorized the Fund to conduct a tender offer during the second quarter of 2002 for up to 15% of the Funds shares, at a price equal to 95% of the Fund's net asset value per share ("NAV") on the last day of the tender period. The tender period commenced on April 15, 2002 and is scheduled to terminate on May 17, 2002. Sincerely, /s/ Ronald E. Robison Ronald E. Robison President and Director April 2002 2 MORGAN STANLEY ASIA-PACIFIC FUND, INC. MARCH 31, 2002 PORTFOLIO SUMMARY Historical Information (Unaudited)
TOTAL RETURN (%) ------------------------------------------------------------------- MARKET VALUE(1) NET ASSET VALUE(2) INDEX(3) ------------------------------------------------------------------- AVERAGE AVERAGE AVERAGE CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL - --------------------------------------------------------------------------------------------------------------------------- Year to date 13.48% -- 9.31% -- 5.58% -- One Year 9.25 9.25% 0.60 0.60% -5.14 -5.14% Five Year -9.98 -2.08 -10.48 -2.19 -25.82 -5.80 Since Inception* -26.69 -3.97 -12.89 -1.79 -35.50 -5.56
Past performance is not predictive of future performance. [CHART]
MORGAN STANLEY ASIA- MSCI JAPAN AND ALL COUNTRY PACIFIC FUND, INC.(2) ASIA FREE NET EX-JAPAN BLEND(3) 1994 -5.94% -5.24% 1995 9.24% 2.88% 1996 -2.87%+ -3.63% 1997 -26.36% -29.55% 1998 -0.34% -0.30% 1999 75.39% 55.16% 2000 -27.37% -30.21% 2001 -14.60% -17.39% 2002 9.31% 5.58%
Returns and Per Share Information
THREE MONTHS ENDED YEAR ENDED DECEMBER 31, MARCH 31, ------------------------------------------------------------------------------------------------- 1994* 1995 1996 1997 1998 1999 2000 2001 2002 - -------------------------------------------------------------------------------------------------------------------------------- Net Asset Value Per Share $ 13.20 $ 14.34 $ 11.95 $ 8.77 $ 8.73 $ 15.26 $ 10.82 $ 9.24 $ 10.10 - -------------------------------------------------------------------------------------------------------------------------------- Market Value Per Share $ 12.25 $ 13.33 $ 9.75 $ 7.44 $ 7.00 $ 11.81 $ 8.69 $ 7.49 $ 8.50 - -------------------------------------------------------------------------------------------------------------------------------- Premium/(Discount) -7.2% -7.0% -18.4% -15.2% -19.8% -22.6% -19.7% -18.9% -15.8% - -------------------------------------------------------------------------------------------------------------------------------- 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% -14.60% 9.31% - -------------------------------------------------------------------------------------------------------------------------------- Index Total Return(3) -5.24% 2.88% -3.63% -29.55% -0.30% 55.16% -30.21% -17.39% 5.58% - --------------------------------------------------------------------------------------------------------------------------------
(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 Net and All-Country Asia-Pacific Free ex-Japan Net with each index weighted equally. The net dividends reinvested series approximate the minumum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate applicable to non-resident individuals who do not benefit from double taxation treaties. * 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 MORGAN STANLEY ASIA-PACIFIC FUND, INC. MARCH 31, 2002 INVESTMENT SUMMARY [CHART] Allocation of Total Investments Equity Securities 97.1% Short-Term Investments 2.9
[CHART] Industries Semiconductor Equipment & Products 10.5% Banks 9.4 Household Durables 6.8 Electronic Equipment & Instruments 5.3 Computers & Peripherals 5.0 Machinery 5.0 Metals & Mining 4.6 Automobiles 4.5 Real Estate 4.2 Pharmaceuticals 3.4 Other 41.3
[CHART] Country Weightings Japan 40.3% South Korea 15.3 Australia 10.8 Taiwan 10.5 China/Hong Kong 10.1 Singapore 6.2 India 3.1 Malaysia 0.7 Other 3.0
Ten Largest Holdings*
PERCENT OF NET ASSETS - ----------------------------------------------------------------------- 1. Samsung Electronics Co., Ltd. (South Korea) 4.4% 2. Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan) 2.5 3. SK Telecom Co., Ltd. (South Korea) 1.8 4. BHP Billiton Ltd. (Australia) 1.6 5. United Microelectronics Corp. (Taiwan) 1.5 6. Rio Tinto Ltd. (Australia) 1.5% 7. Nintendo Co., Ltd. (Japan) 1.3 8. Nissan Motor Co., Ltd. (Japan) 1.3 9. Sun Hung Kai Properties Ltd. (China/Hong Kong) 1.3 10. Canon, Inc. (Japan) 1.3 ----- 18.5% =====
* Excludes short-term investments 4 MORGAN STANLEY ASIA-PACIFIC FUND, INC. FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) STATEMENT OF NET ASSETS
VALUE SHARES (000) - --------------------------------------------------------------------------------- COMMON STOCKS (95.8%) (UNLESS OTHERWISE NOTED) ================================================================================= AUSTRALIA (10.4%) AIRLINES Qantas Airlines Ltd. 1,089,100 $ 2,610 - --------------------------------------------------------------------------------- BANKS Australia & New Zealand Banking Group Ltd. 508,800 4,826 Commonwealth Bank of Australia 285,650 4,885 - --------------------------------------------------------------------------------- 9,711 - --------------------------------------------------------------------------------- BEVERAGES Foster's Brewing Group Ltd. 938,750 2,320 - --------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES Brambles Industries Ltd. 341,651 1,732 - --------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Telstra Corp., Ltd. 561,050 1,611 - --------------------------------------------------------------------------------- INSURANCE QBE Insurance Group Ltd. 304,600 1,169 - --------------------------------------------------------------------------------- MEDIA News Corp., Ltd. 648,400 4,541 - --------------------------------------------------------------------------------- METALS & MINING BHP Billiton Ltd. 1,149,627 6,995 MIM Holdings Ltd. 1,118,100 806 Rio Tinto Ltd. 310,950 6,255 Sons of Gwalia Ltd. 233,600 830 WMC Ltd. 188,250 978 - --------------------------------------------------------------------------------- 15,864 - --------------------------------------------------------------------------------- PHARMACEUTICALS CSL Ltd. 87,610 1,932 - --------------------------------------------------------------------------------- REAL ESTATE Lend Lease Corp., Ltd. 137,250 858 - --------------------------------------------------------------------------------- SPECIALTY RETAIL Woolworths Ltd. 321,600 2,142 - --------------------------------------------------------------------------------- 44,490 ================================================================================= CHINA/HONG KONG (10.1%) AIRLINES Cathay Pacific Airways 292,000 444 - --------------------------------------------------------------------------------- BANKS Hang Seng Bank Ltd. 114,300 1,279 - --------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS Legend Holdings Ltd. 1,950,000 844 - --------------------------------------------------------------------------------- DISTRIBUTORS Li & Fung Ltd. 490,000 782 - --------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS Hong Kong Exchanges and Clearing Ltd. 552,000 $ 856 Swire Pacific Ltd. 'A' 295,600 1,600 Wharf Holdings Ltd. 251,000 597 - --------------------------------------------------------------------------------- 3,053 - --------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Asia Satellite Telecommunications Holdings Ltd. 287,000 438 Pacific Century CyberWorks Ltd. 1,752,000 455 - --------------------------------------------------------------------------------- 893 - --------------------------------------------------------------------------------- ELECTRIC UTILITIES CLP Holdings Ltd. 202,200 830 Hong Kong Electric Holdings Ltd. 388,000 1,467 - --------------------------------------------------------------------------------- 2,297 - --------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT Johnson Electric Holdings Ltd. 1,316,000 1,848 - --------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS QPL International Holdings Ltd. 2,085,000 929 - --------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES China Merchants Holdings International Co., Ltd. 578,000 456 Citic Pacific Ltd. 186,000 386 Hutchison Whampoa Ltd. 592,950 5,227 - --------------------------------------------------------------------------------- 6,069 - --------------------------------------------------------------------------------- MEDIA Television Broadcasts Ltd. 188,000 875 - --------------------------------------------------------------------------------- METALS & MINING Aluminum Corporation of China Ltd. 4,695,000 1,059 - --------------------------------------------------------------------------------- OIL & GAS CNOOC Ltd. 1,181,000 1,469 PetroChina Company Ltd. 4,560,000 941 - --------------------------------------------------------------------------------- 2,410 - --------------------------------------------------------------------------------- REAL ESTATE Amoy Properties Ltd. 409,000 383 Cheung Kong (Holdings) Ltd. 428,000 3,827 Henderson Land Development Co., Ltd. 346,000 1,442 New World Development Co., Ltd. 1,159,000 951 Sun Hung Kai Properties Ltd. 739,000 5,614 - --------------------------------------------------------------------------------- 12,217 - --------------------------------------------------------------------------------- SOFTWARE Travelsky Technology Ltd. 252,000 192 - --------------------------------------------------------------------------------- SPECIALTY RETAIL Esprit Holdings Ltd. 1,555,000 2,691 - --------------------------------------------------------------------------------- 5 MORGAN STANLEY ASIA-PACIFIC FUND, INC. FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) STATEMENT OF NET ASSETS VALUE SHARES (000) - --------------------------------------------------------------------------------- CHINA/HONG KONG (CONTINUED) WIRELESS TELECOMMUNICATION SERVICES China Mobile (Hong Kong) Ltd. ADR 1,302,000 $ 4,023 SmarTone Telecommunications Holdings Ltd. 1,043,000 1,230 - --------------------------------------------------------------------------------- 5,253 - --------------------------------------------------------------------------------- 43,135 ================================================================================= INDIA (2.7%) AUTOMOBILES Hero Honda Motors Ltd. 180,725 1,236 - --------------------------------------------------------------------------------- BANKS HDFC Bank Ltd. ADR 53,200 817 State Bank of India Ltd. 170,235 767 - --------------------------------------------------------------------------------- 1,584 - --------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Mahanagar Telephone Nigam Ltd. 182,127 550 - --------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT Bharat Heavy Electricals Ltd. 197,937 685 - --------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS Colgate-Palmolive (India) Ltd. 56,781 164 - --------------------------------------------------------------------------------- IT CONSULTING & SERVICES Infosys Technologies Ltd. 37,850 2,899 Wipro Ltd. 23,000 802 - --------------------------------------------------------------------------------- 3,701 - --------------------------------------------------------------------------------- METALS & MINING Tata Iron & Steel Co., Ltd. 1,910 4 - --------------------------------------------------------------------------------- OIL & GAS Bharat Petroleum Corp., Ltd. 78,300 529 Hindustan Petroleum Corp., Ltd. 80,000 477 - --------------------------------------------------------------------------------- 1,006 - --------------------------------------------------------------------------------- PHARMACEUTICALS Cipla Ltd. 10,735 224 Dr. Reddy's Laboratories Ltd. 65,984 1,485 - --------------------------------------------------------------------------------- 1,709 - --------------------------------------------------------------------------------- TOBACCO ITC Ltd. 67,900 970 - --------------------------------------------------------------------------------- 11,609 ================================================================================= JAPAN (40.3%) AUTOMOBILES Nissan Motor Co., Ltd. 780,000 5,633 Suzuki Motor Corp. 313,000 3,683 Toyota Motor Corp. 144,000 4,147 - --------------------------------------------------------------------------------- 13,463 - --------------------------------------------------------------------------------- BANKS Mitsubishi Tokyo Financial Group, Inc. 85 519 - --------------------------------------------------------------------------------- BUILDING PRODUCTS Sanwa Shutter Corp., Ltd. 302,000 $ 749 - --------------------------------------------------------------------------------- CHEMICALS Daicel Chemical Industries Ltd. 840,000 2,533 Denki Kagaku Kogyo Kabushiki Kaisha 800,000 2,020 Kaneka Corp. 549,000 3,551 Lintec Corp. 240,000 1,560 Mitsubishi Chemical Corp. 820,000 1,762 Shin-Etsu Polymer Co., Ltd. 450,000 1,560 - --------------------------------------------------------------------------------- 12,986 - --------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES Dai Nippon Printing Co., Ltd. 293,000 3,289 Nissha Printing Co., Ltd. 63,000 321 - --------------------------------------------------------------------------------- 3,610 - --------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS Fujitsu Ltd. 538,000 4,117 Mitsumi Electric Co., Ltd. 226,000 3,612 NEC Corp. 418,000 3,479 Toshiba Corp. 1,058,000 4,426 - --------------------------------------------------------------------------------- 15,634 - --------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING Kurita Water Industries Ltd. 281,000 3,093 Obayashi Corp. 770,000 2,165 Sanki Engineering 60,000 280 - --------------------------------------------------------------------------------- 5,538 - --------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS Hitachi Capital Corp. 237,900 2,923 - --------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Nifco, Inc. 230,000 1,916 Nippon Telephone & Telegraph Corp. 980 3,760 - --------------------------------------------------------------------------------- 5,676 - --------------------------------------------------------------------------------- ELECTRIC UTILITIES Tokyo Electric Power Co., Inc. 133,000 2,517 - --------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT Furakawa Electric Co., Ltd. 340,000 1,648 Kyudenko Co. 290,000 949 - --------------------------------------------------------------------------------- 2,597 - --------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Hitachi High - Technologies Corp. 95,000 1,349 Hitachi Ltd. 588,000 4,296 Kyocera Corp. 55,000 3,802 Ryosan Co., Ltd. 143,000 1,536 TDK Corp. 68,300 3,666 - --------------------------------------------------------------------------------- 14,649 - --------------------------------------------------------------------------------- FOOD & DRUG RETAILING FamilyMart Co., Ltd. 142,200 2,305 - --------------------------------------------------------------------------------- 6 MORGAN STANLEY ASIA-PACIFIC FUND, INC. FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) STATEMENT OF NET ASSETS VALUE SHARES (000) - --------------------------------------------------------------------------------- JAPAN (CONTINUED) FOOD PRODUCTS House Foods Corp. 111,000 $ 983 Nippon Meat Packers, Inc. 178,000 1,731 - --------------------------------------------------------------------------------- 2,714 - --------------------------------------------------------------------------------- HOUSEHOLD DURABLES Casio Computer Co., Ltd. 450,000 2,070 Matsushita Electric Industrial Co., Ltd. 343,000 4,179 Nintendo Co., Ltd. 38,400 5,645 Rinnai Corp. 98,700 1,771 Sangetsu Co., Ltd. 17,000 218 Sekisui Chemical Co., Ltd. 443,000 1,229 Sekisui House Ltd. 390,000 2,781 Sony Corp. 98,000 5,090 - --------------------------------------------------------------------------------- 22,983 - --------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS Fuji Photo Film Co., Ltd. 138,000 4,338 Toho Co., Ltd. 25,000 283 Yamaha Corp. 292,000 2,124 - --------------------------------------------------------------------------------- 6,745 - --------------------------------------------------------------------------------- MACHINERY Amada Co., Ltd. 552,000 2,830 Daifuku Co., Ltd. 623,000 2,297 Daikin Industries Ltd. 272,000 4,921 Fuji Machine Manufacturing Co., Ltd. 176,000 2,786 Fujitec Co., Ltd. 170,000 616 Minebea Co., Ltd. 500,000 3,223 Mitsubishi Heavy Industries Ltd. 932,000 3,049 Tsubakimoto Chain Co. 700,000 1,752 - --------------------------------------------------------------------------------- 21,474 - --------------------------------------------------------------------------------- MARINE Mitsubishi Logistics Corp. 135,000 994 - --------------------------------------------------------------------------------- OFFICE ELECTRONICS Canon, Inc. 144,000 5,341 Ricoh Co., Ltd. 270,000 4,997 - --------------------------------------------------------------------------------- 10,338 - --------------------------------------------------------------------------------- PHARMACEUTICALS Ono Pharmaceutical Co., Ltd. 118,000 3,585 Sankyo Co., Ltd. 230,000 3,511 Yamanouchi Pharmaceutical Co., Ltd. 159,000 3,968 - --------------------------------------------------------------------------------- 11,064 - --------------------------------------------------------------------------------- REAL ESTATE Mitsubishi Estate Co., Ltd. 457,000 3,259 - --------------------------------------------------------------------------------- ROAD & RAIL East Japan Railway Co. 625 2,624 - --------------------------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS Rohm Co., Ltd. 18,000 $ 2,700 - --------------------------------------------------------------------------------- TEXTILES & APPAREL Nisshinbo Industries, Inc. 200,000 777 - --------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS Mitsubishi Corp. 400,000 3,013 Nagase & Co., Ltd. 197,000 772 - --------------------------------------------------------------------------------- 3,785 - --------------------------------------------------------------------------------- 172,623 ================================================================================= MALAYSIA (0.7%) HOTELS RESTAURANTS & LEISURE Magnum Corp. Bhd 1,678,000 1,223 - --------------------------------------------------------------------------------- TOBACCO British American Tobacco (Malaysia) Bhd 190,000 1,738 - --------------------------------------------------------------------------------- 2,961 - --------------------------------------------------------------------------------- SINGAPORE (6.2%) AEROSPACE & DEFENSE SIA Engineering Co., Ltd. 544,000 611 Singapore Technologies Engineering Ltd. 1,160,000 1,453 - --------------------------------------------------------------------------------- 2,064 - --------------------------------------------------------------------------------- AIRLINES Singapore Airlines Ltd. 328,000 2,562 - --------------------------------------------------------------------------------- BANKS DBS Group Holdings Ltd. 364,979 2,930 Oversea-Chinese Banking Corp., Ltd. 463,700 3,471 United Overseas Bank Ltd. 532,389 4,390 - --------------------------------------------------------------------------------- 10,791 - --------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS Keppel Corp., Ltd. 395,000 879 - --------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Singapore Telecommunications Ltd. 654,000 564 - --------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Venture Manufacturing (Singapore) Ltd. 250,000 2,468 - --------------------------------------------------------------------------------- MARINE Neptune Orient Lines 1,666,000 976 - --------------------------------------------------------------------------------- MEDIA Singapore Press Holdings Ltd. 149,600 1,996 - --------------------------------------------------------------------------------- REAL ESTATE Capitaland, Ltd. 651,000 618 City Developments Ltd. 320,000 1,137 - --------------------------------------------------------------------------------- 1,755 - --------------------------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS Chartered Semiconductor 621,000 1,644 - --------------------------------------------------------------------------------- 7 MORGAN STANLEY ASIA-PACIFIC FUND, INC. FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) STATEMENT OF NET ASSETS VALUE SHARES (000) - --------------------------------------------------------------------------------- SINGAPORE (CONTINUED) TRANSPORTATION INFRASTRUCTURE Sembcorp Logisitics Corp. 860,800 $ 1,032 - --------------------------------------------------------------------------------- 26,731 ================================================================================= SOUTH KOREA (14.9%) AUTO COMPONENTS Hyundai Mobis 173,880 4,156 - --------------------------------------------------------------------------------- AUTOMOBILES Hyundai Motor Co., Ltd. 151,490 4,698 - --------------------------------------------------------------------------------- BANKS Hana Bank 115,315 1,784 Kookmin Bank 71,837 3,016 Shinhan Financial Group Co., Ltd. 219,520 2,897 - --------------------------------------------------------------------------------- 7,697 - --------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING LG Engineering & Construction Co., Ltd. 82,910 1,060 Hyundai Development Company 52,150 373 - --------------------------------------------------------------------------------- 1,433 - --------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS Kookmin Credit Card Co., Ltd. 16,830 712 LG Securities Co. 62,520 1,012 Samsung Securities Co., Ltd. 23,640 951 Seoul Securities Co., Ltd. 54,040 312 - --------------------------------------------------------------------------------- 2,987 - --------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Korea Telecom Corp. ADR 31,000 743 - --------------------------------------------------------------------------------- ELECTRIC UTILITIES Korea Electric Power Corp. 20,680 404 Korea Electric Power Corp. ADR 112,900 1,190 - --------------------------------------------------------------------------------- 1,594 - --------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Samsung Electro Mechanics Co., Ltd. 40,181 2,340 - --------------------------------------------------------------------------------- FOOD PRODUCTS Tongyang Confectionery Corp. 24,610 1,234 - --------------------------------------------------------------------------------- HOUSEHOLD DURABLES Humax Co., Ltd. 101,550 4,594 LG Electronics Ltd. 46,010 1,566 - --------------------------------------------------------------------------------- 6,160 - --------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS LG Household & Health Care Ltd. 17,100 570 - --------------------------------------------------------------------------------- INSURANCE Hyundai Marine & Fire Insurance Co., Ltd. (HDMF) 13,190 484 - --------------------------------------------------------------------------------- MEDIA Cheil Communications, Inc. 10,470 1,461 - --------------------------------------------------------------------------------- METALS & MINING Pohang Iron & Steel Co., Ltd. 14,180 $ 1,480 Pohang Iron & Steel Co., Ltd. ADR 38,900 1,018 - --------------------------------------------------------------------------------- 2,498 - --------------------------------------------------------------------------------- MULTILINE RETAIL Shinsegae Co., Ltd. 6,170 976 - --------------------------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS Samsung Electronics Co., Ltd. 62,657 16,944 - --------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES SK Telecom Co., Ltd. 17,400 3,843 SK Telecom Co., Ltd. ADR 151,300 3,722 - --------------------------------------------------------------------------------- 7,565 - --------------------------------------------------------------------------------- 63,540 ================================================================================= TAIWAN (10.5%) BANKS Bank Sinopac 1,741,000 752 Chinatrust Commercial Bank 5,315,043 4,181 First Commercial Bank 320,000 197 Fubon Financial Holding Co., Ltd. 1,313,928 1,293 Taipei Bank 1,279,000 885 Taishin Financial Holdings Co., Ltd. 2,736,000 1,190 - --------------------------------------------------------------------------------- 8,498 - --------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT Accton Technology Corp. 1,362,000 3,740 - --------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS Ambit Microsystems Corp. 201,191 898 Asustek Computer, Inc. 453,800 2,025 Quanta Computer, Inc. 541,000 2,104 - --------------------------------------------------------------------------------- 5,027 - --------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT Phoenixtec Power Co. Ltd. 634,000 589 - --------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Hon Hai Precision Industry Co., Ltd. 35,632 166 Yageo Corporation 2,368,000 2,113 - --------------------------------------------------------------------------------- 2,279 - --------------------------------------------------------------------------------- FOOD & DRUG RETAILING President Chain Store Corp. 575,226 1,078 - --------------------------------------------------------------------------------- METALS & MINING China Steel Corp. 893,670 422 - --------------------------------------------------------------------------------- 8 MORGAN STANLEY ASIA-PACIFIC FUND, INC. FINANCIAL STATEMENTS MARCH 31, 2002 (UNAUDITED) STATEMENT OF NET ASSETS VALUE SHARES (000) - -------------------------------------------------------------------------------- TAIWAN (CONTINUED) SEMICONDUCTOR EQUIPMENT & PRODUCTS Advanced Semiconductor Engineering, Inc. 591,000 $ 587 ASE Test Ltd. 48,300 754 Faraday Technology Corp. 75,600 415 Siliconware Precision Industries Co. 1,783,247 1,785 Sunplus Technology Co., Ltd. 226,450 875 Taiwan Semiconductor Manufacturing Co., Ltd. 3,967,168 10,780 United Microelectronics Corp. 4,173,910 6,328 - -------------------------------------------------------------------------------- 21,524 - -------------------------------------------------------------------------------- TEXTILES & APPAREL Formosa Chemicals & Fibre Corp. 806,440 865 - -------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES Taiwan Cellular Corp. 770,425 974 - -------------------------------------------------------------------------------- 44,996 ================================================================================ TOTAL COMMON STOCKS (Cost $429,284) 410,085 ================================================================================ - -------------------------------------------------------------------------------- PREFERRED STOCKS (0.8%) ================================================================================ AUSTRALIA (0.4%) MEDIA News Corp., Ltd. 292,800 1,719 - -------------------------------------------------------------------------------- SOUTH KOREA (0.4%) SEMICONDUCTOR EQUIPMENT & PRODUCTS Samsung Electronics Co., Ltd. (Preferred) 14,240 1,939 - -------------------------------------------------------------------------------- TOTAL PREFERRED STOCKS (Cost $3,159) 3,658 ================================================================================ INVESTMENT COMPANIES (0.4%) ================================================================================ INDIA (0.4%) Morgan Stanley Growth Fund (Cost $1,744) 9,491,200 1,722 ================================================================================ FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS (2.8%) ================================================================================ UNITED STATES (2.8%) REPURCHASE AGREEMENT J.P. Morgan Securities, Inc., 1.76%, dated 3/28/02, due 4/1/02 (Cost $11,777) $ 11,777(a) $ 11,777 ================================================================================ - -------------------------------------------------------------------------------- FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN (0.1%) ================================================================================ Australian Dollar AUD 165 88 Hong Kong Dollar HKD 520 67 Indian Rupee INR 464 9 Japanese Dollar JPY 1,824 14 New Taiwan Dollar TWD 14,194 406 South Korean Dollar KRW 3,753 3 - -------------------------------------------------------------------------------- TOTAL FOREIGN CURRENCY (Cost $587) 587 ================================================================================ TOTAL INVESTMENTS (99.9%) (Cost $446,551) $ 427,829 ================================================================================ AMOUNT (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (0.1%) Other Assets $ 2,034 Liabilities (1,625) 409 - -------------------------------------------------------------------------------- NET ASSETS (100.0%) Applicable to 42,410,656, issued and outstanding $ 0.01 par value shares (100,000,000 shares authorized) $ 428,238 ================================================================================ NET ASSET VALUE PER SHARE $ 10.10 ================================================================================
(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. 9 -----END PRIVACY-ENHANCED MESSAGE-----