-----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, FiPLgRDUd4D6mzVoJfN5VBD4VTcgjauvJHvEUrubIeqSm/vVh8AooTZFlGlRWpmA X/NG1geLz8LQewzMiNjmuw== 0000912057-97-019922.txt : 19970611 0000912057-97-019922.hdr.sgml : 19970611 ACCESSION NUMBER: 0000912057-97-019922 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970610 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN STANLEY ASIA PACIFIC FUND INC CENTRAL INDEX KEY: 0000919808 STANDARD INDUSTRIAL CLASSIFICATION: [] 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: 97621341 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 N-30B-2 1 N-30B-2 MORGAN STANLEY ASIA-PACIFIC FUND, INC. - --------------------------------------------- DIRECTORS AND OFFICERS Barton M. Biggs William G. Morton, Jr. CHAIRMAN OF THE BOARD DIRECTOR OF DIRECTORS James W. Grisham Warren J. Olsen VICE PRESIDENT PRESIDENT AND DIRECTOR Michael F. Klein Peter J. Chase VICE PRESIDENT DIRECTOR Harold J. Schaaff, Jr. John W. Croghan VICE PRESIDENT DIRECTOR Joseph P. Stadler David B. Gill VICE PRESIDENT DIRECTOR Valerie Y. Lewis Graham E. Jones SECRETARY DIRECTOR James R. Rooney John A. Levin TREASURER DIRECTOR Belinda A. Brady ASSISTANT TREASURER - --------------------------------------------- INVESTMENT ADVISER Morgan Stanley Asset Management Inc. 1221 Avenue of the Americas New York, New York 10020 - -------------------------------------------------------- ADMINISTRATOR The Chase Manhattan Bank 73 Tremont Street Boston, Massachusetts 02108 - -------------------------------------------------------- CUSTODIANS Morgan Stanley Trust Company One Pierrepont Plaza Brooklyn, New York 11201 The Chase Manhattan Bank 770 Broadway New York, New York 10003 - -------------------------------------------------------- SHAREHOLDER SERVICING AGENT American Stock Transfer & Trust Company 40 Wall Street New York, New York 10005 (800) 278-4353 - -------------------------------------------------------- LEGAL COUNSEL Rogers & Wells 200 Park Avenue New York, New York 10166 - -------------------------------------------------------- INDEPENDENT ACCOUNTANTS Price Waterhouse 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. ------------------------ MORGAN STANLEY ASIA-PACIFIC FUND, INC. --------------------- FIRST QUARTER REPORT MARCH 31, 1997 MORGAN STANLEY ASSET MANAGEMENT INC. INVESTMENT ADVISER LETTER TO SHAREHOLDERS - -------- For the three months ended March 31, 1997, the Morgan Stanley Asia-Pacific Fund, Inc. (the "Fund") had a total return, based on net asset value per share, of - -2.51% compared to its benchmark (as defined below) of -8.98%. For the one year ended March 31, 1997, the Fund had a total return, based on net asset value per share, of -9.78% compared with -19.11% for the benchmark. For the period since the Fund's commencement of operations on August 2, 1994 through March 31, 1997, the Fund's total return, based on net asset value per share, was -2.64% compared with -19.61% for the benchmark. (The benchmark for investment purposes is the weighted average of the percentage change month-on-month of two Morgan Stanley Capital International (MSCI) indices; Japan and Combined Asia Pacific Free ex- Japan, where the weights are based on the respective market capitalizations of these indices at the beginning of each month). On March 31, 1997, the closing price of the Fund's shares on the New York Stock Exchange was $9.75 representing a 16.3% discount to the net asset value per share. JAPAN During the first quarter of 1997, an anticipated economic slowdown and the future of Japan's growth prospects depressed investor sentiment, resulting in the TOPIX falling by more than 6% in local currency. This was mostly a result of the consumption tax hike from 3% to 5%, termination of the special income tax cuts and increases in social security premiums, which all took effect in April 1997. Therefore, while the consensus believed an inevitable slowdown would occur during the second quarter of 1997, the possibility of sluggish conditions during the second half of 1997 due to this change in Japan's fiscal policy also plagued investors. Moreover, Japan's longer term role in the 21st century global economy came under scrutiny. In order to meet these challenges Prime Minister Hashimoto announced a Japanese style "Big Bang", including administrative restructuring, deregulation of key industries and further financial reform. With the U.S. still showing robust growth and the European Union about to begin in a few years, observers felt these new announcements amounted to no more than a "Small Pop". Even the new fiscal 1997 budget smacked of "business as usual" without any radically new measures to stimulate domestic demand. At the same time, Japan's non-performing loans yet again came under fire with the collapse of Hanwa and Hyogo Sogo Bank. The actual magnitude of the losses stemming from real estate related loans totally eclipsed the original "official" estimates by these banks. Thus, the credibility of Japanese banks' disclosure was focused on both by both domestic investors and foreigners and shares in bank stocks were sold aggressively, pushing the TOPIX into a vicious cycle of accelerated selling. With Japan's fiscal year ending in March, domestic institutions, in order to raise cash for balance sheet requirements, further unloaded their "cross holdings" in an already weak market. Several bankruptcies and scandals also came to the fore during the first quarter of 1997. Kyotaru Co., primarily a chain of Sushi restaurants and heavily involved in real estate and stock speculation went bankrupt; Izui oil, Orange Kayosai, Ajinomoto and Nomura Securities all announced various impropriety dealings, helping to keep investor sentiment on the sidelines. As a result of a rapidly declining equity market, interest rates on 10-year Japanese Government Bonds hit a record low, as domestic investors sought a safe haven in Government bonds. On the other hand, international blue chips and globally competitive Japanese companies such as pharmaceuticals and automobiles fared very well under the sharp overall market decline of the first quarter. Companies such as TDK, Cannon, Ricoh and Sankyo hit all-time highs. A very polarized "two tier" market, which began in 1996, accelerated dramatically. Our Fund, heavily concentrated in these sectors performed favorably verses our benchmark. ASIA EX-JAPAN For the first quarter of 1997, the Asia Pacific ex-Japan markets, as represented by the MSCI Combined Asia Pacific Free ex-Japan Index, fell 3.2% after a rise of 9.2% in 1996. Divergence in performance among the individual country markets continued to be wide with the worst performer, Thailand, falling a sharp 15.2% over the quarter while best performing markets like Pakistan, India and Taiwan rose by 19.0%, 7.1% and 9.5%, respectively over the same period. The year actually opened on a relatively firm note with the MSCI Combined Asia Pacific Free ex-Japan Index registering gains of 0.8% in January and 0.9% in February. However, the tone became progressively weaker with rising U.S. interest rates and a faltering Dow culminating in a sell-off which took the Index down by 4.9% in March. STRATEGY AND OUTLOOK India, the largest single overweight position in the Fund (14.7% vs 2.8% for the Index), did very well with a rise of 7.1% over the quarter. The relatively underowned market continues to be underpinned by economic recovery and good liquidity with only political upsets as the 2 major risk. The Fund intends to maintain its overweight position. The Fund's mandate unfortunately does not allow investment in Taiwan, the other top performing market for the quarter. The Fund also did well in Malaysia and Hong Kong. The Fund is substantially underweight in Malaysia which has taken a turn for the worst. Tightening measures to rein in property and shares financing announced by the central bank, Bank Negara, towards the end of the quarter has finally brought realization that the party is about to end. Having defied gravity for so long, with its unbroken ten-year record of above 8% real economic growth, the consolidation, once started, is likely to ripple through the whole overstretched economy. Although this dose of medicine or reality is for the long term good of the economy, the unfolding correction is going to be painful. The Fund's reduced position in Hong Kong stood it in good stead as the market fell close to 10% over the quarter. The euphoria about the June 30, 1997 handover that had built up to a crescendo at the end of 1996 has since been somewhat punctured by rising U.S. interest rates, a faltering Dow and uncharacteristically early measures by the Hong Kong authorities to clamp down on escalating property speculation. However, stock prices have suffered steep declines and are beginning to look historically cheap and attractive again. Based on improving economic fundamentals in China and Hong Kong, once the speculative excesses have been cleared, it is likely that it will rally again ahead of the historic handover at the end of June. The Fund will seek to add to its Hong Kong positions with oversold blue chips and emergent red chips and China plays. Although the Thai market continued to underperform, the worst seems to be over. Most recently, in the face of disappointing earnings and macro-economic news and a downgrade by S&P, the market held its ground at the 700 level on the Stock Exchange of Thailand Index. Foreign premiums on the bell-weather blue chip Thai banks have expanded and the Thai market actually outperformed the regional index in the March sell-off. Positives would include an oversold market which is extremely cheap on historical levels, but economic fundamentals continue to weaken as the financial crisis works its way through the system. The recovery is likely to be slow and painful and the Fund will incrementally seek to add to Thailand as the recovery progresses. On the other hand, the Fund will be seeking to reduce its position in Singapore and the Philippines. The economic slowdown and property consolidation in Singapore is still working its way through the system and earnings growth is likely to continue being anemic. There are signs of trouble in the overheated Philippine real estate sector with attendant banking issues and it could presage a difficult market ahead of the upcoming Presidential elections next year. SUMMARY In summary therefore, the overall short-term outlook for the Asian markets is likely to continue to be dampened by rising U.S. interest rates and the faltering Dow. Individually, the country markets are at different points in the economic cycle and hence the significant divergence in their market performance. The greater China block comprising Taiwan, Hong Kong and China, and India are on the upcycle and are likely to continue to outperform. Thailand and Korea are still mired in a painful consolidation and any market recovery is likely to be slow and steady rather than quick and sharp while Malaysia's consolidation has just started and probably has some ways to go. Sincerely, [SIGNATURE] Warren J. Olsen PRESIDENT AND DIRECTOR [SIGNATURE] Ean Wah Chin SENIOR PORTFOLIO MANAGER April 1997 3 Morgan Stanley Asia-Pacific Fund, Inc. Investment Summary as of March 31, 1997 (Unaudited) - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
HISTORICAL INFORMATION TOTAL RETURN (%) ------------------------------------------------------------------------------ MARKET VALUE (1) NET ASSET VALUE (2) INDEX (3) ------------------------ -------------------------- ------------------------ AVERAGE AVERAGE AVERAGE CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL ------------------------ -------------------------- ------------------------ FISCAL YEAR TO DATE 0.00% -- -2.51% -- -8.98% -- ONE YEAR -13.40+ -13.40%+ -9.78+ -9.78%+ -19.11 -19.11% SINCE INCEPTION* -18.56+ -7.42+ -2.64+ -1.00+ -19.61 -7.87
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. - -------------------------------------------------------------------------------- RETURNS AND PER SHARE INFORMATION A BAR CHART REFLECTING THE DATA BELOW IS REFLECTED HERE.
TOTAL RETURN YEARS ENDED DECEMBER 31: THREE MONTH ENDED 1994* 1995 1996 MARCH 31, 1997 Net Asset Value Per Share $13.20 $14.34 $11.95 $11.65 Market Value Per Share $12.25 $13.33 $9.75 $9.75 Premium/(Discount) -7.20% -7.00% -18.4% -16.3% Income Dividends $0.04 $0.05 $0.61 - Capital Gains Distributions $0.01 $0.02 - - Fund Total Return (2) -5.94% 9.24% -2.87%+ -2.51% Index Total Return (3) -5.90% 0.87% -9.17% -8.98% Morgan Stanley Asia-Pacific Fund, Inc. (2) MSCI Regional Composite Index (3)
(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 the weighted average of the percentage change month-on-month of two Morgan Stanley Capital International (MSCI) indices; Japan and Combined Asia Pacific Free ex-Japan, where the weights are based on the respective market capitalizations of these indices at the beginning of the month. * 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. 4 Morgan Stanley Asia-Pacific Fund, Inc. Portfolio Summary as of March 31, 1997 (Unaudited) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PORTFOLIO INVESTMENTS DIVERSIFICATION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Equity Securities 88.4% Short-Term Investments 11.5% Fixed Income Securities 0.1%
- -------------------------------------------------------------------------------- SECTORS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Automobiles 3.3% Banking 12.3% Chemicals 5.3% Electrical & Electronics 10.9% Electronic Components & Instruments 2.6% Financial Services 4.0% Machinery & Engineering 7.1% Multi-Industry 4.2% Real Estate 6.6% Telecommunications 5.5% Other 38.2%
- -------------------------------------------------------------------------------- COUNTRY WEIGHTINGS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Japan 37.4% India 16.0% Australia 8.1% Singapore 6.4% Hong Kong 6.3% Thailand 3.5% Philippines 3.4% Korea 3.2% Malaysia 2.9% Indonesia 2.6% Other 10.2%
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TEN LARGEST HOLDINGS* PERCENT OF NET ASSETS --------------- 1. National Australia Bank Ltd. 2.4% 2. Bharat Heavy Electricals Ltd. 2.2 3. Housing Development Finance Corp. Ltd. 2.2 4. Cheung Kong (Holdings) Ltd. 2.2 5. WMC Ltd. 2.0 PERCENT OF NET ASSETS --------------- 6. Lend Lease Corp. Ltd. 2.0% 7. HSBC Holdings plc 1.8 8. Container Corp. of India Ltd. 1.7 9. Broken Hill Proprietary Co. Ltd. 1.7 10. Hutchison Whampoa Ltd. 1.6 --- 19.8% --- ---
* Excludes short-term investments. 5 INVESTMENTS (UNAUDITED) - --------- MARCH 31, 1997
VALUE SHARES (000) - --------------------------------------------------------- - ------------ COMMON STOCKS (88.3%) (Unless otherwise noted) - -------------------------------------------------- - ---------- AUSTRALIA (8.0%) BANKING National Australia Bank Ltd. 1,571,884 U.S.$ 19,901 -------------- ENERGY SOURCES Broken Hill Proprietary Co. Ltd. 1,052,964 14,033 -------------- METALS -- NON-FERROUS WMC Ltd. 2,645,655 16,717 -------------- REAL ESTATE Lend Lease Corp. Ltd. 959,277 16,439 -------------- 67,090 -------------- - --------------------------------------------------------- - ------------ CHINA (0.2%) UTILITIES -- ELECTRICAL & GAS Shandong Huaneng Power Co. Ltd. ADR 125,700 1,320 -------------- - --------------------------------------------------------- - ------------ HONG KONG (6.3%) BANKING HSBC Holdings plc 639,948 14,866 -------------- MULTI-INDUSTRY Hutchison Whampoa Ltd. 1,749,000 13,148 -------------- REAL ESTATE Cheung Kong (Holdings) Ltd. 2,067,000 18,206 Sun Hung Kai Properties Ltd. 583,000 6,170 -------------- 24,376 -------------- 52,390 -------------- - --------------------------------------------------------- - ------------ INDIA (14.7%) APPLIANCES & HOUSEHOLD DURABLES Phillips India Ltd. 123,582 272 -------------- AUTOMOBILES Apollo Tyres Ltd. 687,750 2,067 Apollo Tyres Ltd. (Warrants), expiring 2/28/98 189,643 135 Autolec Industries Ltd. 152,800 217 Autolite Ltd. 231,900 537 Autopal Industries Ltd. 65,000 44 Bajaj Tempo Ltd. 2,425 16 Bajaj Tempo Ltd. (Rights) 1,717 7 Bajaj Tempo Ltd. -- New 3,648 24 Ceat Ltd. 368,000 487 Denso India Ltd. 71,200 183 Escorts Ltd. 965,925 1,980 Hero Honda Ltd. 37,150 311 Jay Bharat Maruti Ltd. 53,200 38 Lumax Automatic Parts Industries Ltd. 100,825 285 MRF Ltd. 18,000 1,551 Patheja Forgings and Auto Ltd. 677,700 399 Sona Steering System Ltd. 56,000 78 Tata Engineering & Locomotive Ltd. 223,022 2,115 -------------- 10,474 --------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ BANKING State Bank of India Ltd. 918,312 U.S.$ 6,986 -------------- BEVERAGES & TOBACCO ITC Ltd. 25,175 252 United Breweries Ltd. 149,100 121 -------------- 373 -------------- BUILDING MATERIALS & COMPONENTS Associated Cement Co. Ltd. 54,441 2,010 Gujarat Ambuja Cements Ltd. 520,950 3,650 India Cements Ltd. 75,000 155 Kesoram Industries Ltd. 310,238 366 Murudeshwar Ceramics Ltd. 46,000 55 Panyam Cements & Minerals Ltd. 33,765 678 Saurashtra Cement & Chemicals Ltd. 50 --@ -------------- 6,914 -------------- CHEMICALS Asian Paints Ltd. 71,445 557 EID Parry Ltd. 64,300 132 Gujarat Narmada Valley Fertilizers Ltd. GDR 275,000 825 Gujarat Narmada Valley Fertilizers Ltd. 'A' 303,995 192 Gujarat State Fertilisers Ltd. 6,550 16 Indian Dyestuff Industries Ltd. 304,250 106 Indian Organic Chemical Ltd. 275,480 61 Indian Petro Chemical Corp. Ltd. 1,977,890 7,626 Jaysynth Dyechem Ltd. 145,800 102 Sudarshan Chemicals Ltd. 4,600 8 United Phosphorous Ltd. 97,500 489 -------------- 10,114 -------------- CONSTRUCTION & HOUSING Hindustan Construction Co. 255,825 214 Nagarjuna Construction Ltd. 151,100 195 -------------- 409 -------------- DATA PROCESSING & REPRODUCTION Modi Xerox Ltd. 16,850 54 -------------- ELECTRICAL & ELECTRONICS BPL Ltd. 400 --@ -------------- ELECTRONIC COMPONENTS & INSTRUMENTS Infosys Technology Ltd. 9,600 270 Rolta India Ltd. 999,500 403 S&S Power Switchgear Ltd. 63,550 125 Samtel India Ltd. 1,000 --@ -------------- 798 -------------- ENERGY EQUIPMENT & SERVICES Bharat Heavy Electricals Ltd. 2,262,400 18,642 Crompton Greaves Ltd. 455,210 1,136 KEC International Ltd. 881,750 1,537 -------------- 21,315 -------------- - --------------------------------------------------------- - ------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ INDIA (CONTINUED) FINANCIAL SERVICES Housing Development Finance Corp. Ltd. 238,292 U.S.$ 18,276 Industrial Finance Corp (India) Ltd. 1,462,700 1,040 -------------- 19,316 -------------- FOOD & HOUSEHOLD PRODUCTS Dhampur Sugar Mills Ltd. 141,575 203 -------------- FOREST PRODUCTS & PAPER Ballarpur Industries Ltd. 232,264 334 ITC Bhadrachalam Paperboards Ltd. 273,595 378 Vikas WSP Ltd. 234,700 890 -------------- 1,602 -------------- HEALTH & PERSONAL CARE Godrej Soaps Ltd. 197,600 167 Hoechst India Ltd. 50,650 453 Pfizer Ltd. 8,850 57 Sun Pharmaceutical Industries Ltd. 161,200 1,169 TTK Biomed Ltd. 21,500 15 -------------- 1,861 -------------- LEISURE & TOURISM ITC Hotels Ltd. 213,000 814 -------------- MACHINERY & ENGINEERING Artson Engineering Ltd. 234,700 95 DGP Windsor India Ltd. 218,800 362 Esab India Ltd. 346,865 844 Flat Products Equipments (India) Ltd. 174,900 585 Hindustan Power Plus Ltd. 75,600 170 Thermax Ltd. 31,200 260 Veejay Lakshmi Engineering Ltd. 149,100 229 -------------- 2,545 -------------- METALS -- STEEL Hindustan Development Corp. Ltd. 989,180 389 Tata Iron & Steel Co. Ltd. 43,517 194 Tata SSL Ltd. 464,500 483 Tata SSL Ltd. (Rights) 3,290 3 -------------- 1,069 -------------- MISCELLANEOUS MATERIALS & COMMODITIES Amforge Industries Ltd. 34,505 23 Amforge Industries Ltd. (Warrants) expiring 7/1/97 5,150 --@ Bharat Forge Co. Ltd. 217,996 544 Cosmo Films Ltd. 175,000 137 Essel Packaging Ltd. 146,300 388 ITW Signode India Ltd. 571,132 1,521 Polyplex Ltd. 225,000 99 Suashish Diamonds Ltd. 148,100 186 Supreme Industries Ltd. 178,449 872 Wimco Ltd. 422,200 173 -------------- 3,943 --------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ MULTI-INDUSTRY Bajaj Hindustan Ltd. 21,000 U.S.$ 24 Birla VXL Ltd. 846,998 378 Indian Rayon & Industries Ltd. 520 4 JK Corp Ltd. 100 --@ JK Corp Ltd. GDR 61,140 76 JK Corp. Ltd. GDR 144A 249,240 312 Max India Ltd. -- New 100,000 558 *Morgan Stanley Growth Fund 32,892,200 5,504 UTI MasterShares Ltd. 2,268,290 791 Voltas Ltd. 207,950 162 -------------- 7,809 -------------- REAL ESTATE Alacrity Housing Ltd. 381,000 104 -------------- RECREATION, OTHER CONSUMER GOODS Tube Investments of India Ltd. 109,400 156 -------------- TELECOMMUNICATIONS Mahanagar Telephone Nigam Ltd. 707,600 4,756 -------------- TEXTILES & APPAREL Century Textile & Industry Ltd. 11,038 639 Coates of India Ltd. 100,680 418 DCL Polyesters Ltd. 195,000 36 Garware Plastics & Polyester Ltd. 275,525 592 G.T.N. Textiles Ltd. 243,000 337 Indo Rama Synthetics Ltd. 689,200 379 Indo Rama Synthetics Ltd. -- New 46,170 22 J.K. Synthetics Ltd. 686,901 155 Mahavir Spinning Mills Ltd. 173,686 349 Morajee Goculdas Spinning Ltd. 125,000 146 Raymond Ltd. 102,801 222 Raymond Ltd. Bonus Shares 126,060 255 Viniyoga Clothes Ltd. 486,600 17 -------------- 3,567 -------------- TRANSPORTATION -- ROAD & RAIL Container Corp. of India Ltd. 1,199,600 14,386 -------------- TRANSPORTATION -- SHIPPING Great Eastern Shipping Ltd. 'A' 2,609,434 2,602 -------------- 122,442 -------------- - --------------------------------------------------------- - ------------ INDONESIA (2.6%) AUTOMOBILES Astra International (Foreign) 718,500 2,334 -------------- BANKING Bank International Indonesia (Foreign) 4,515,319 3,432 Bank International Indonesia (Foreign) (Warrants) expiring 1/17/00 401,362 142 -------------- 3,574 -------------- - --------------------------------------------------------- - ------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ INDONESIA (CONTINUED) BEVERAGES & TOBACCO Gudang Garam (Foreign) 729,500 U.S.$ 3,183 HM Sampoerna (Foreign) 389,000 1,823 -------------- 5,006 -------------- CHEMICALS Sorini Corp. (Foreign) 2,700,000 1,265 -------------- FOREST PRODUCTS & PAPER Indah Kiat Pulp & Paper (Foreign) 2,455,444 1,815 -------------- TELECOMMUNICATIONS Telekomunikasi Indonesia (Foreign) 4,938,000 7,558 -------------- 21,552 -------------- - --------------------------------------------------------- - ------------ JAPAN (37.2%) APPLIANCES & HOUSEHOLD DURABLES Rinnai Corp. 140,700 2,401 -------------- AUTOMOBILES Asahi Tec Corp. 443,000 1,885 Nissan Motor Co. 1,000,000 6,026 Suzuki Motor Co. Ltd. 630,000 6,115 -------------- 14,026 -------------- BUILDING MATERIALS & COMPONENTS Sangetsu Co. Ltd. 100,000 1,739 Sanwa Shutter Corp. Ltd. 472,000 3,455 Sanwa Shutter Corp. Ltd. (Warrants), expiring 1/20/98 2,400 210 -------------- 5,404 -------------- BUSINESS & PUBLIC SERVICES Dai Nippon Printing Co. Ltd. 370,000 6,195 -------------- CHEMICALS Daicel Chemical Industries Ltd. 912,000 3,283 Fuji Photo Film Ltd. 222,000 7,308 Kaneka Corp. 899,000 4,792 Mitsubishi Chemical Industriies 2,060,000 6,248 Nifco Inc. 330,000 2,856 Okura Industrial Co. Ltd. 434,000 1,660 Sekisui Chemical Co. 703,000 6,937 -------------- 33,084 -------------- CONSTRUCTION & HOUSING Kyudenko Co. Ltd. 389,000 2,876 Ohbayashi Corp. 865,000 5,079 Sekisui House Ltd. 307,000 3,005 Taisei Corp. Ltd. 1,000,000 3,882 Yahagi Construction Co. 173,000 910 -------------- 15,752 -------------- DATA PROCESSING & REPRODUCTION Fujitsu Ltd. 460,000 4,688 Ricoh Co. Ltd. 836,000 9,534 -------------- 14,222 --------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ ELECTRICAL & ELECTRONICS Canon, Inc. 450,000 U.S.$ 9,645 Hitachi Ltd. 1,185,000 10,543 Kyocera Corp. 60,000 3,407 Kyocera Corp. (Warrants), expiring 1/23/98 1,450 662 Matsushita Communication Industrial Co. 201,000 4,682 Matsushita Electric Industrial Co. Ltd. 562,000 8,773 NEC Corp. 925,000 10,474 Nintendo Ltd. 130,000 9,337 Sony Corp. 145,000 10,145 Stanley Electric Co. 690,000 3,343 Tokyo Electron Ltd. 269,500 8,937 Toshiba Corp. 1,630,000 9,018 -------------- 88,966 -------------- ELECTRONIC COMPONENTS & INSTRUMENTS Mitsumi Electric Co. Ltd. 388,000 7,124 Murata Manufacturing Co. 140,000 5,028 TDK Corp. 131,000 9,006 -------------- 21,158 -------------- FINANCIAL SERVICES Hitachi Credit Corp. 188,000 2,767 Nikko Securities Co. 757,000 4,249 Nomura Securities Co. Ltd. 365,000 4,045 -------------- 11,061 -------------- HEALTH & PERSONAL CARE Sankyo Co. Ltd. 266,000 7,336 Secom Co. 130,000 7,308 Yamanouchi Pharmaceutical Co. 300,000 6,212 -------------- 20,856 -------------- INDUSTRIAL COMPONENTS Furakawa Electric Co. 400,000 1,773 -------------- INSURANCE Nichido Fire & Marine Insurance Co. 30,000 162 Sumitomo Marine & Fire Co. 642,000 3,895 -------------- 4,057 -------------- MACHINERY & ENGINEERING Amada Co. Ltd. 817,000 5,914 Daifuku Co. Ltd. 531,000 5,798 Daikin Kogyo Co. 600,000 4,489 Fuji Machine Co. 329,000 8,542 Kurita Water Industries Ltd. 274,000 5,319 Mitsubishi Heavy Industries Ltd. 1,150,000 7,488 Nishio Rent All Co. 94,000 1,194 Nishio Rent All Co. (Warrants), expiring 2/20/98 1,055 53 Tsubakimoto Chain Co. 872,000 5,099 -------------- 43,896 -------------- MISCELLANEOUS MATERIALS & COMMODITIES Nippon Pillar Packing Co. 157,000 857 -------------- - --------------------------------------------------------- - ------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ JAPAN (CONTINUED) REAL ESTATE Daibiru Corp. 308,000 U.S.$ 2,989 Keihanshin Real Estate Co. 205,000 1,144 Mitsubishi Estate Co. Ltd. 447,000 4,772 -------------- 8,905 -------------- TELECOMMUNICATIONS Nippon Telephone & Telegraph Corp. 982 6,918 -------------- TEXTILES & APPAREL Shimamura Co. Ltd. 58,900 1,706 -------------- TRANSPORTATION -- ROAD & RAIL Nippon Konpo Unyu Soko Co. 50,000 283 -------------- WHOLESALE & INTERNATIONAL TRADE FamilyMart 178,200 6,731 Inabata & Co. 406,000 2,430 -------------- 9,161 -------------- 310,681 -------------- - --------------------------------------------------------- - ------------ KOREA (3.1%) APPLIANCES & HOUSEHOLD DURABLES Samsung Electronics Co. (Foreign) 54,492 4,301 -------------- BANKING Housing & Commercial Bank, Korea 67,550 1,200 Kookmin Bank GDR 82,000 1,451 Shinhan Bank Co. Ltd. (Foreign) 42,040 603 -------------- 3,254 -------------- CONSTRUCTION & HOUSING Hyundai Engineering (Foreign) 143,391 2,962 Hyundai Engineering (Foreign) RFD 2,754 57 -------------- 3,019 -------------- METALS -- STEEL Pohang Iron & Steel ADR 161,500 3,836 -------------- TELECOMMUNICATIONS Korea Mobile Telecom (Foreign) 5,560 5,225 Korea Mobile Telecom (Foreign) RFD 166 156 LG Information & Communication Ltd. (Foreign) 35,620 3,599 -------------- 8,980 -------------- UTILITIES -- ELECTRICAL & GAS Korea Electric Power (Foreign) 95,920 2,785 -------------- 26,175 -------------- - --------------------------------------------------------- - ------------ MALAYSIA (2.9%) AUTOMOBILES Edaran Otomobil Nasional Bhd 58,000 585 -------------- BANKING Malayan Banking Bhd 430,000 4,902 --------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ CONSTRUCTION & HOUSING IJM Corp., Bhd 37,000 U.S.$ 91 -------------- LEISURE & TOURISM Genting Bhd 441,000 2,990 -------------- MACHINERY & ENGINEERING United Engineers Ltd. 584,000 5,090 -------------- MULTI-INDUSTRY Renong Bhd 2,468,000 4,183 -------------- TELECOMMUNICATIONS Telekom Malaysia Bhd 847,000 6,596 -------------- 24,437 -------------- - --------------------------------------------------------- - ------------ PHILIPPINES (3.4%) CONSTRUCTION & HOUSING DMCI Holdings, Inc. 4,947,000 3,518 -------------- ENERGY SOURCES Petron Corp. 8,909,375 3,633 -------------- MULTI-INDUSTRY JG Summit Holdings 17,430,100 4,562 -------------- REAL ESTATE Ayala Land, Inc. 2,126,025 2,419 SM Prime Holdings, Inc. 9,637,680 2,815 -------------- 5,234 -------------- TELECOMMUNICATIONS Digital Telecommunications Philippines, Inc. 30,651,000 2,837 Philippine Long Distance Telephone 64,250 3,863 -------------- 6,700 -------------- UTILITIES -- ELECTRICAL & GAS Manila Electric Co. 564,851 4,499 -------------- 28,146 -------------- - --------------------------------------------------------- - ------------ SINGAPORE (6.4%) BANKING Development Bank of Singapore (Foreign) 884,000 10,281 Oversea-Chinese Banking Corp. (Foreign) 758,000 9,026 United Overseas Bank (Foreign) 979,200 10,033 -------------- 29,340 -------------- BEVERAGES & TOBACCO Fraser & Neave 388,400 3,173 Super Coffeemix Manufacturing Ltd. 8,518,000 6,604 -------------- 9,777 -------------- BROADCASTING & PUBLISHING Singapore Press Holdings (Foreign) 120,000 2,185 -------------- MACHINERY & ENGINEERING Keppel Corp. 978,000 6,161 Sembawang Corp. 369,000 1,775 -------------- 7,936 -------------- - --------------------------------------------------------- - ------------
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VALUE SHARES (000) - --------------------------------------------------------- - ------------ SINGAPORE (CONTINUED) MULTI-INDUSTRY Keppel Land Ltd. 1,469,000 U.S.$ 4,536 -------------- 53,774 -------------- - --------------------------------------------------------- - ------------ THAILAND (3.5%) BANKING Bangkok Bank Ltd. (Foreign) 958,300 9,304 Siam Commercial Bank Co. Ltd. (Foreign) 632,500 3,704 Thai Farmers Bank Ltd. (Foreign) 1,024,000 6,668 Thai Farmers Bank Ltd. (Warrants), expiring 9/15/02 128,000 62 -------------- 19,738 -------------- ELECTRICAL & ELECTRONICS Shinawatra Computer Co. Ltd. (Foreign) 234,800 1,972 -------------- FINANCIAL SERVICES Finance One Co. Ltd. (Foreign) 1,119,527 1,024 National Finance & Securities Co. Ltd. (Foreign) 792,400 1,061 Phatra Thanakit Co. Ltd. (Foreign) 513,135 919 -------------- 3,004 -------------- TELECOMMUNICATIONS Advanced Information Services Co. Ltd. (Foreign) 349,700 2,991 United Communications Industry (Foreign) 235,000 1,521 -------------- 4,512 -------------- 29,226 -------------- - --------------------------------------------------------- - ------------ TOTAL COMMON STOCKS (Cost U.S. $820,842) 737,233 -------------- - --------------------------------------------------------- - ------------ FACE AMOUNT (000) - --------------------------------------------------------- - ------------ FIXED INCOME SECURITIES (0.0%) - --------------------------------------------------------- - ------------ INDIA (0.0%) METALS -- STEEL Tata SSL Ltd. 14.00%, 12/6/02 INR 3 3 -------------- MISCELLANEOUS MATERIALS & COMMODITIES Amforge Industries Ltd., Zero Coupon, 12/1/06 5 3 -------------- MULTI-INDUSTRY Max India Part B, Zero Coupon, 12/1/06 100 558 -------------- - --------------------------------------------------------- - ------------ TOTAL FIXED INCOME SECURITIES (Cost U.S. $755) 564 -------------- - --------------------------------------------------------- - ------------ FACE AMOUNT VALUE (000) (000) - --------------------------------------------------------- - ------------ SHORT-TERM INVESTMENT (10.0%) - --------------------------------------------------------- - ------------ UNITED STATES (10.0%) REPURCHASE AGREEMENT Chase Securities Inc, 6.00%, dated 3/31/97, due 4/1/97, to be repurchased at U.S. $83,227, collateralized by United States Treasury Notes, 5.825-6.75%, due 4/30/00-11/30/00, valued at U.S. $84,974 (Cost U.S. $83,213) U.S.$ 83,213 U.S.$ 83,213 -------------- - --------------------------------------------------------- - ------------ FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN (1.5%) Australian Dollar AUD 460 361 Hong Kong Dollar HKD 2,037 263 Indian Rupee INR 375,364 10,469 Indonesian Rupiah IDR 720 --@ Japanese Yen JPY 150,083 1,214 South Korean Won KRW 119,063 133 Malaysian Ringgit MYR 51 21 Philippine Peso PNP 1,042 40 Singapore Dollar SGD 43 29 Thai Baht THB 1,267 49 -------------- (Cost U.S. $12,584) 12,579 -------------- - --------------------------------------------------------- - ------------ TOTAL INVESTMENTS (99.8%) (Cost U.S. $917,394) 833,589 -------------- - --------------------------------------------------------- - ------------ OTHER ASSETS AND LIABILITIES (0.2%) Other Assets U.S. $ 87,322 Liabilities (85,976) 1,346 --------------- -------------- - --------------------------------------------------------- - ------------ NET ASSETS (100%) Applicable to 71,654,508 issued and outstanding U.S. $0.01 par value shares (100,000,000 shares authorized) U.S.$ 834,935 -------------- -------------- - --------------------------------------------------------- - ------------ NET ASSET VALUE PER SHARE U.S.$ 11.65 -------------- -------------- - --------------------------------------------------------- - ------------
@ -- Value is less than U.S. $500. * -- Advised by an affiliate. ADR -- American Depositary Receipt GDR -- Global Depositary Receipt RFD -- Ranked for Dividend NOTE: Prior governmental approval for foreign investments may be required under certain circumstances in some emerging markets, and foreign ownership limitations may also be imposed by the charters of individual companies in such markets. As a result, an additional class of shares designated as "foreign" may be created and offered for investment. The "local" and "foreign" shares' market values may vary. 10 -----END PRIVACY-ENHANCED MESSAGE-----