N-30B-2 1 a2092757zn-30b_2.txt N-30B-2 THIRD QUARTER REPORT September 30, 2002 MORGAN STANLEY ASIA-PACIFIC FUND, INC. DIRECTORS AND OFFICERS Barton M. Biggs CHAIRMAN OF THE BOARD OF DIRECTORS Ronald E. Robison PRESIDENT AND DIRECTOR John D. Barrett II DIRECTOR Thomas P. Gerrity DIRECTOR Gerard E. Jones DIRECTOR Joseph J. Kearns DIRECTOR Vincent R. McLean DIRECTOR C. Oscar Morong, Jr. DIRECTOR William G. Morton, Jr. DIRECTOR Michael Nugent DIRECTOR Fergus Reid DIRECTOR Stefanie V. Chang VICE PRESIDENT Lorraine Truten VICE PRESIDENT James W. Garrett TREASURER Mary E. Mullin SECRETARY Belinda A. Brady ASSISTANT TREASURER 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 STOCKHOLDER SERVICING AGENT American Stock Transfer & Trust Company 59 Maiden Lane New York, New York 10030 (800) 278-4353 LEGAL COUNSEL Clifford Chance Rogers & Wells LLP 200 Park Avenue New York, New York 10166 INDEPENDENT AUDITOR 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. (C) 2002 Morgan Stanley [MORGAN STANLEY LOGO] MORGAN STANLEY ASIA-PACIFIC FUND, INC. MORGAN STANLEY INVESTMENT MANAGEMENT INC. INVESTMENT ADVISER MORGAN STANLEY ASIA-PACIFIC FUND, INC. OVERVIEW Letter to Stockholders For the nine months ended September 30, 2002, the Morgan Stanley Asia-Pacific Fund, Inc. (the "Fund") had a total return, based on net asset value per share, of -8.01% compared with -7.16% 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 September 30, 2002, the closing price of the Fund's shares on the New York Stock Exchange was $7.20 representing a 15.3% discount to the Fund's net asset value per share. MARKET REVIEW The Japanese market was one of the best performers among asset classes for the nine month period ending September 30, 2002, led by positive indicators of a cyclical recovery. Over the latest quarter, mounting concerns for an economic recovery in the United States caused investors to re-evaluate a cyclical recovery in Japan which was largely based on exports. Meanwhile, Asia ex-Japan markets also fared well versus developed markets, although in the last quarter, markets have struggled to shake off the malaise affecting most of the other equity regions, given the potential threat of war with Iraq and the general uncertainty regarding the uneven pace of the economic recovery. In Japan, the Fund's larger exposure to the technology sector negatively affected performance, mainly due to fears of a deteriorating U.S. economy and the rising yen. Also, the Fund's virtually zero exposure to the banking sector detracted from performance, as expectations for a possible solution to non-performing loans mounted. We have maintained exposure to Japanese technology companies, which have a generally positive profit outlook, and have increased the number of holdings to include companies with measurable balance sheet qualities since the beginning of 2002. In Asia ex-Japan, stock selection in the developed markets of Australia, Hong Kong and Singapore was the largest detractor to performance. Cyclical areas bore the brunt of the selling pressure, with the largest declines being seen among information technology and industrials. Telecommunication stocks also fared particularly poorly. Dividend yield, cash flows and defensive growth characterized the region's sector outperformer's - namely utilities and energy. We have been increasing the aggressive tilt in the Fund, buying into beaten down sectors like airlines, property and information technology. MARKET OUTLOOK Although we are not forecasting a strong recovery in the U.S., we believe that markets will be relieved with a stable economy, which in turn should help Japan's cyclical recovery. The recent shuffle within the Financial Services Agency, which has appointed more hawkish leaders, could mark the final chapter in Japan's decade long economic slump, largely attributed to the non-performing loan issues. Operating under the assumption of an "anemic" global economic recovery over the next three to four quarters, Asia ex-Japan should perform well on a relative and absolute basis. While earnings recovery for corporate Asia Pacific ex-Japan is likely to take a breather over the next quarter, we believe that the up-trend in earnings growth over the next year is still intact and we remain optimistic on these markets over the next twelve months as they continue to trade at a substantial discount to global markets. OTHER DEVELOPMENTS On January 23, 1998, the Fund commenced a share repurchase program for purposes of enhancing stockholder value and reducing the discount at which the Fund's shares trade from their net asset value. For the nine months ended September 30, 2002, the Fund repurchased 590,730 of its shares at an average discount of 16.34% from net asset value per share. Since the inception of the program, the Fund has repurchased 14,905,664 of its shares at an average discount of 20.56% 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 2002 THE FUND ANNOUNCED IN SEPTEMBER 2002, THAT IT WILL BE MANAGED BY THE EMERGING MARKETS, ASIAN EQUITY AND JAPANESE EQUITY TEAMS. CURRENT MEMBERS OF THE TEAM, ALL OF MORGAN STANLEY INVESTMENT MANAGEMENT, INCLUDE JOHN ALKIRE, A MANAGING DIRECTOR, ASHUTOSH SINHA, AN EXECUTIVE DIRECTOR, AND NARAYAN RAMACHANDRAN AND KUNIHIKO SUGIO, EACH A MANAGING DIRECTOR. 2 MORGAN STANLEY ASIA-PACIFIC FUND, INC. September 30, 2002 Investment 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 (3.87)% -- (8.01)% -- (7.16)% -- One Year 14.29 14.29% 6.25 6.25% 1.43 1.43% Five Year (19.08) (4.15) (23.61) (5.24) (35.28) (8.33) Since Inception* (37.90) (5.68) (26.69) (3.74) (44.26) (6.91)
Past performance is not predictive of future performance. [CHART] Returns and Per Share Information
NINE MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 30, ----------------------------------------------------------------------------------------------------- 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 $ 8.50 ----------------------------------------------------------------------------------------------------------------------------------- Market Value Per Share $ 12.25 $ 13.33 $ 9.75 $ 7.44 $ 7.00 $ 11.81 $ 8.69 $ 7.49 $ 7.20 ----------------------------------------------------------------------------------------------------------------------------------- Premium/(Discount) (7.2)% (7.0)% (18.4)% (15.2)% (19.8)% (22.6)% (19.7)% (18.9)% (15.3)% ----------------------------------------------------------------------------------------------------------------------------------- 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)% (14.60)% (8.01)% ----------------------------------------------------------------------------------------------------------------------------------- Index Total Return(3) (5.24)% 2.88% (3.63)% (29.55)% (0.30)% 55.16% (30.21)% (17.39)% (7.16)% -----------------------------------------------------------------------------------------------------------------------------------
(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 stockholder'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. IN ADDITION, INVESTING IN EMERGING MARKETS MAY INVOLVE A RELATIVELY HIGHER DEGREE OF VOLATILITY. 3 MORGAN STANLEY ASIA-PACIFIC FUND, INC. September 30, 2002 (Unaudited) Portfolio Summary [PIE CHART] ALLOCATION OF TOTAL INVESTMENTS Equity Securities 99.0% Short-Term Investments 1.0%
[PIE CHART] INDUSTRIES Semiconductor Equipment & Products 7.4% Household Durables 7.3% Banks 7.2% Electronic Equipment & Instruments 5.8% Automobiles 5.7% Other 66.6%
[PIE CHART] COUNTRY WEIGHTINGS Japan 52.1% South Korea 12.7% Autralia 9.8% China/Hong Kong 8.0% Taiwan 7.3% Other 10.1%
TEN LARGEST HOLDINGS*
PERCENT OF NET ASSETS 1. Samsung Electronics Co., Ltd. (South Korea) 5.1% 2. Toyota Motor Corp. (Japan) 1.7 3. Nissan Motor Co., Ltd. (Japan) 1.7 4. Ricoh Co., Ltd. (Japan) 1.7 5. Nintendo Co., Ltd. (Japan) 1.6 6. Daikin Industries Ltd. (Japan) 1.5% 7. Canon, Inc. (Japan) 1.5 8. Fuji Photo Film Co., Ltd. (Japan) 1.5 9. SK Telecom Co., Ltd. (South Korea) 1.5 10. Sony Corp. (Japan) 1.4 ----- 19.2% =====
* Excludes Short-Term Investments 4 MORGAN STANLEY ASIA-PACIFIC FUND, INC. STATEMENT OF NET ASSETS SEPTEMBER 30, 2002 (UNAUDITED) STATEMENT OF NET ASSETS
VALUE SHARES (000) --------------------------------------------------------------- COMMON STOCKS (96.9%) (UNLESS OTHERWISE NOTED) --------------------------------------------------------------- AUSTRALIA (9.5%) AIRLINES Qantas Airways Ltd. 961,650 $ 1,869 --------------------------------------------------------------- BANKS Australia & New Zealand Banking Group Ltd. 399,350 3,826 Commonwealth Bank of Australia 224,150 3,668 --------------------------------------------------------------- 7,494 --------------------------------------------------------------- BEVERAGES Foster's Group Ltd. 736,750 1,844 --------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES Brambles Industries Ltd. 268,151 939 --------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Telstra Corp., Ltd. 440,350 1,133 --------------------------------------------------------------- FOOD & DRUG RETAILING Woolworths Ltd. 252,400 1,685 --------------------------------------------------------------- INSURANCE QBE Insurance Group Ltd. 239,050 929 --------------------------------------------------------------- MEDIA News Corp., Ltd. 508,900 2,428 --------------------------------------------------------------- METALS & MINING BHP Billiton Ltd. 902,277 4,433 BHP Steel Ltd. 180,455 (a) 262 MIM Holdings Ltd. 2,500,540 1,534 Rio Tinto Ltd. 244,050 4,014 --------------------------------------------------------------- 10,243 --------------------------------------------------------------- REAL ESTATE Lend Lease Corp., Ltd. 107,750 591 --------------------------------------------------------------- 29,155 --------------------------------------------------------------- CHINA/HONG KONG (8.0%) AIRLINES Cathay Pacific Airways 426,000 576 --------------------------------------------------------------- BANKS Dah Sing Financial 7,000 30 --------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES Travelsky Technology Ltd. 217,000 130 --------------------------------------------------------------- COMPUTERS & PERIPHERALS TPV Technology Ltd. 380,000 110 --------------------------------------------------------------- DISTRIBUTORS Li & Fung Ltd. 734,000 696 --------------------------------------------------------------- DIVERSIFIED FINANCIALS Hong Kong Exchanges & Clearing Ltd. 334,000 403 --------------------------------------------------------------- Wharf Holdings Ltd. 412,000 784 --------------------------------------------------------------- 1,187 --------------------------------------------------------------- ELECTRIC UTILITIES Huaneng Power International, Inc., 'H' 1,266,000 990 --------------------------------------------------------------- ELECTRICAL EQUIPMENT Johnson Electric Holdings Ltd. 1,646,000 1,646 --------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS QPL International Holdings Ltd. 1,796,000 (a) 348 --------------------------------------------------------------- HOUSEHOLD DURABLES Techtronic Industries Co., Ltd. 848,000 652 --------------------------------------------------------------- INDUSTRIAL CONGLOMERATES Hutchison Whampoa Ltd. 592,950 3,436 --------------------------------------------------------------- MEDIA i-Cable Communications Ltd. 677,000 250 Television Broadcasts Ltd. 352,000 1,083 --------------------------------------------------------------- 1,333 --------------------------------------------------------------- METALS & MINING Yanzhou Coal Mining Co., Ltd. 'H' 1,422,000 469 --------------------------------------------------------------- OIL & GAS CNOOC Ltd. 777,000 1,081 PetroChina Co., Ltd. 3,024,000 613 --------------------------------------------------------------- 1,694 --------------------------------------------------------------- REAL ESTATE Cheung Kong Holdings Ltd. 344,000 2,170 Henderson Land Development Co., Ltd. 226,000 667 Sun Hung Kai Properties Ltd. 484,000 2,842 --------------------------------------------------------------- 5,679 --------------------------------------------------------------- SPECIALTY RETAIL Esprit Holdings Ltd. 1,031,000 1,586 Giordano International Ltd. 1,456,000 570 --------------------------------------------------------------- 2,156 --------------------------------------------------------------- TEXTILES & APPAREL Texwinca Holdings Ltd. 995,000 670 --------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES China Mobile (Hong Kong) Ltd. 864,000 1,994 SmarTone Telecommunications Holdings Ltd. 839,000 839 --------------------------------------------------------------- 2,833 --------------------------------------------------------------- 24,635 --------------------------------------------------------------- INDIA (2.8%) AUTOMOBILES Hero Honda Motors Ltd. 155,725 837 ---------------------------------------------------------------
5 MORGAN STANLEY ASIA-PACIFIC FUND, INC. STATEMENT OF NET ASSETS September 30, 2002 (Unaudited) STATEMENT OF NET ASSETS (CONT'D)
VALUE SHARES (000) --------------------------------------------------------------- INDIA (CONT'D) BANKS HDFC Bank Ltd. ADR 53,200 $ 755 State Bank of India Ltd. 145,235 709 --------------------------------------------------------------- 1,464 --------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Mahanagar Telephone Nigam Ltd. 158,127 359 --------------------------------------------------------------- ELECTRICAL EQUIPMENT Bharat Heavy Electricals Ltd. 171,937 568 --------------------------------------------------------------- IT CONSULTING & SERVICES Infosys Technologies Ltd. 32,850 2,310 Wipro Ltd. 20,000 548 --------------------------------------------------------------- 2,858 --------------------------------------------------------------- METALS & MINING Tata Iron & Steel Co., Ltd. 1,910 4 --------------------------------------------------------------- OIL & GAS Bharat Petroleum Corp., Ltd. 67,300 239 Hindustan Petroleum Corp., Ltd. 69,000 240 --------------------------------------------------------------- 479 --------------------------------------------------------------- PHARMACEUTICALS Cipla Ltd. 9,235 181 Dr. Reddy's Laboratories Ltd. 56,984 983 --------------------------------------------------------------- 1,164 --------------------------------------------------------------- TOBACCO ITC Ltd. 58,900 792 --------------------------------------------------------------- 8,525 --------------------------------------------------------------- INDONESIA (0.2%) DIVERSIFIED TELECOMMUNICATION SERVICES --------------------------------------------------------------- Telekomunikasi Indonesia Tbk PT 1,728,000 716 --------------------------------------------------------------- JAPAN (52.1%) --------------------------------------------------------------- AUTOMOBILES Nissan Motor Co., Ltd. 694,000 5,153 Suzuki Motor Corp. 294,000 3,315 Toyota Motor Corp. 204,300 5,252 --------------------------------------------------------------- 13,720 --------------------------------------------------------------- BANKS Mitsubishi Tokyo Financial Group, Inc. 45 332 --------------------------------------------------------------- BUILDING PRODUCTS Daikin Industries Ltd. 246,000 4,627 Sanwa Shutter Corp., Ltd. 352,000 994 --------------------------------------------------------------- 5,621 --------------------------------------------------------------- CHEMICALS Daicel Chemical Industries Ltd. 798,000 2,255 Denki Kagaku Kogyo Kabushiki Kaisha 888,000 $ 2,057 Kaneka Corp. 540,000 3,042 Lintec Corp. 195,000 1,590 Mitsubishi Chemical Corp. 929,000 1,702 Nifco, Inc. 203,000 2,097 Shin-Etsu Polymer Co., Ltd. 387,000 1,535 --------------------------------------------------------------- 14,278 --------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES Dai Nippon Printing Co., Ltd. 188,000 2,037 Nissha Printing Co., Ltd. 63,000 370 --------------------------------------------------------------- 2,407 --------------------------------------------------------------- COMPUTERS & PERIPHERALS Fujitsu Ltd. 571,000 2,467 Mitsumi Electric Co., Ltd. 221,500 2,610 NEC Corp. 480,000 2,314 1,163,000 Toshiba Corp. (a) 3,553 --------------------------------------------------------------- 10,944 --------------------------------------------------------------- CONSTRUCTION & ENGINEERING Kurita Water Industries Ltd. 234,000 2,104 Obayashi Corp. 692,000 1,790 Sanki Engineering Co., Ltd. 74,000 373 --------------------------------------------------------------- 4,267 --------------------------------------------------------------- DIVERSIFIED FINANCIALS Hitachi Capital Corp. 258,300 3,241 --------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Nippon Telegraph & Telephone Corp. 936 3,113 --------------------------------------------------------------- ELECTRIC UTILITIES Tokyo Electric Power Co., Inc. 165,100 2,983 --------------------------------------------------------------- ELECTRICAL EQUIPMENT Furukawa Electric Co., Ltd. 414,000 942 Kyudenko Corp. 220,000 705 --------------------------------------------------------------- 1,647 --------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Hitachi High-Technologies Corp. 70,000 978 Hitachi Ltd. 712,000 3,567 Kyocera Corp. 57,600 3,855 Ryosan Co., Ltd. 133,000 1,417 TDK Corp. 72,200 2,805 --------------------------------------------------------------- 12,622 --------------------------------------------------------------- FOOD & DRUG RETAILING FamilyMart Co., Ltd. 127,300 3,006 --------------------------------------------------------------- FOOD PRODUCTS House Foods Corp. 136,000 1,215 Nippon Meat Packers, Inc. 210,000 1,682 --------------------------------------------------------------- 2,897 ---------------------------------------------------------------
6 MORGAN STANLEY ASIA-PACIFIC FUND, INC. STATEMENT OF NET ASSETS September 30, 2002 (Unaudited) STATEMENT OF NET ASSETS (CONT'D)
VALUE SHARES (000) --------------------------------------------------------------- JAPAN (CONT'D) HOUSEHOLD DURABLES Casio Computer Co., Ltd. 407,000 $ 2,069 Matsushita Electric Industrial Co., Ltd. 374,000 3,879 Nintendo Co., Ltd. 41,200 4,798 Rinnai Corp. 83,700 1,963 Sangetsu Co., Ltd. 17,000 270 Sekisui Chemical Co., Ltd. 399,000 1,101 Sekisui House Ltd. 351,000 2,620 Sony Corp. 105,700 4,436 --------------------------------------------------------------- 21,136 --------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS Fuji Photo Film Co., Ltd. 153,000 4,561 Yamaha Corp. 242,000 2,292 --------------------------------------------------------------- 6,853 --------------------------------------------------------------- MACHINERY Amada Co., Ltd. 508,000 1,919 Daifuku Co., Ltd. 583,000 2,155 Fuji Machine Manufacturing Co., Ltd. 156,000 1,461 Fujitec Co., Ltd. 178,000 922 Minebea Co., Ltd. 504,000 2,554 Mitsubishi Heavy Industries Ltd. 1,106,000 3,016 Tsubakimoto Chain Co. 743,000 1,910 --------------------------------------------------------------- 13,937 --------------------------------------------------------------- MARINE Mitsubishi Logistics Corp. 141,000 888 --------------------------------------------------------------- MEDIA Toho Co., Ltd. 75,000 782 --------------------------------------------------------------- OFFICE ELECTRONICS Canon, Inc. 141,000 4,609 Ricoh Co., Ltd. 296,000 5,142 --------------------------------------------------------------- 9,751 --------------------------------------------------------------- PHARMACEUTICALS Ono Pharmaceutical Co., Ltd. 104,000 3,160 Sankyo Co., Ltd. 275,000 3,560 Yamanouchi Pharmaceutical Co., Ltd. 177,900 3,901 --------------------------------------------------------------- 10,621 --------------------------------------------------------------- REAL ESTATE Mitsubishi Estate Co., Ltd. 436,000 3,484 --------------------------------------------------------------- ROAD & RAIL East Japan Railway Co. 769 3,587 --------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS Rohm Co., Ltd. 14,200 1,667 --------------------------------------------------------------- TEXTILES & APPAREL Nisshinbo Industries, Inc. 315,000 $ 1,477 --------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS Mitsubishi Corp. 529,000 3,554 Nagase & Co., Ltd. 197,000 899 --------------------------------------------------------------- 4,453 --------------------------------------------------------------- 159,714 --------------------------------------------------------------- MALAYSIA (0.7%) BANKS Commerce Asset Holdings Bhd 1,384,000 1,100 --------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE Magnum Corp. Bhd 1,446,000 906 --------------------------------------------------------------- 2,006 --------------------------------------------------------------- SINGAPORE (4.7%) AIRLINES Singapore Airlines Ltd. 438,000 2,363 --------------------------------------------------------------- BANKS DBS Group Holdings Ltd. 402,979 2,537 United Overseas Bank Ltd. 543,389 3,634 --------------------------------------------------------------- 6,171 --------------------------------------------------------------- DIVERSIFIED FINANCIALS Keppel Corp., Ltd. 309,000 754 --------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Venture Corp., Ltd. 230,000 1,370 --------------------------------------------------------------- INDUSTRIAL CONGLOMERATES SembCorp Industries Ltd. 1,310,000 689 --------------------------------------------------------------- MARINE Neptune Orient Lines Ltd. 1,300,000 (a) 449 --------------------------------------------------------------- REAL ESTATE CapitaLand, Ltd. 1,464,000 1,004 City Developments Ltd. 250,000 660 --------------------------------------------------------------- 1,664 --------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS Chartered Semiconductor Manufacturing Ltd. 514,800 (a) 159 --------------------------------------------------------------- TRANSPORTATION INFRASTRUCTURE Sembcorp Logistics Ltd. 671,800 634 --------------------------------------------------------------- 14,253 --------------------------------------------------------------- SOUTH KOREA (11.6%) AUTO COMPONENTS Hyundai Mobis 114,270 2,243 --------------------------------------------------------------- AUTOMOBILES Hyundai Motor Co., Ltd. 98,900 2,257 ---------------------------------------------------------------
7 MORGAN STANLEY ASIA-PACIFIC FUND, INC. STATEMENT OF NET ASSETS September 30, 2002 (Unaudited) STATEMENT OF NET ASSETS (CONT'D)
VALUE SHARES (000) --------------------------------------------------------------- SOUTH KOREA (CONT'D) BANKS Kookmin Bank 25,047 $ 917 Shinhan Financial Group Co., Ltd. 167,260 1,894 --------------------------------------------------------------- 2,811 --------------------------------------------------------------- CHEMICALS LG Chem Ltd. 31,490 837 --------------------------------------------------------------- CONSTRUCTION & ENGINEERING Hyundai Development Co. 95,850 (a) 538 --------------------------------------------------------------- DIVERSIFIED FINANCIALS Daishin Securities Co. 12,150 155 LG Investment & Securities Co., Ltd. 24,400 284 Samsung Securities Co., Ltd. 37,340 (a) 910 Seoul Securities Co., Ltd. 70,930 261 --------------------------------------------------------------- 1,610 --------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Samsung Electro-Mechanics Co., Ltd. 37,851 1,362 --------------------------------------------------------------- FOOD PRODUCTS Tongyang Confectionery Corp. 17,880 806 --------------------------------------------------------------- HOUSEHOLD DURABLES LG Electronics Ltd. 26,169 (a) 714 --------------------------------------------------------------- HOUSEHOLD PRODUCTS LG Household & Health Care Ltd. 14,730 482 --------------------------------------------------------------- INSURANCE Hyundai Marine & Fire Insurance Co., Ltd. 17,230 379 --------------------------------------------------------------- MEDIA CJ39 Shopping Corp. 16,616 764 --------------------------------------------------------------- METALS & MINING --------------------------------------------------------------- POSCO 22,750 1,981 POSCO ADR 20,700 447 --------------------------------------------------------------- 2,428 --------------------------------------------------------------- MULTILINE RETAIL Shinsegae Co., Ltd. 5,320 805 --------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS Samsung Electronics Co., Ltd. 53,457 13,050 --------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES SK Telecom Co., Ltd. 17,400 3,373 SK Telecom Co., Ltd. ADR 50,600 1,074 --------------------------------------------------------------- 4,447 --------------------------------------------------------------- 35,533 --------------------------------------------------------------- TAIWAN (7.3%) AIRLINES Eva Airways Corp. 2,728,000 (a) 966 --------------------------------------------------------------- BANKS Taipei Bank 1,540,000 (a) $ 1,405 Taishin Financial Holdings Co., Ltd. 2,795,000 (a) 1,122 --------------------------------------------------------------- 2,527 --------------------------------------------------------------- CHEMICALS Formosa Chemicals & Fibre Corp. 658,726 489 Formosa Plastics Corp. 130,000 124 --------------------------------------------------------------- 613 --------------------------------------------------------------- COMMUNICATIONS EQUIPMENT Accton Technology Corp. 1,213,725 (a) 1,845 --------------------------------------------------------------- COMPUTERS & PERIPHERALS Asustek Computer, Inc. 414,800 975 Benq Corp. 427,120 539 Quanta Computer, Inc. 337,100 643 --------------------------------------------------------------- 2,157 --------------------------------------------------------------- CONSTRUCTION & ENGINEERING CTCI Corp. 1,172,000 502 --------------------------------------------------------------- CONSTRUCTION MATERIALS Taiwan Cement Corp. 816,140 (a) 174 --------------------------------------------------------------- DIVERSIFIED FINANCIALS Chinatrust Financial Holding Co., Ltd. 3,698,043 (a) 2,598 Fubon Financial Holding Co., Ltd. 235,928 196 Sinopac Holdings Co. 1,876,432 (a) 770 --------------------------------------------------------------- 3,564 --------------------------------------------------------------- ELECTRICAL EQUIPMENT Phoenixtec Power Co., Ltd. 977,000 591 --------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Hon Hai Precision Industry Co., Ltd. 596,200 1,992 --------------------------------------------------------------- FOOD & DRUG RETAILING President Chain Store Corp. 16,159 26 --------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS Largan Precision Co., Ltd. 131,300 693 Premier Image Technology Corp. 495,000 639 --------------------------------------------------------------- 1,332 --------------------------------------------------------------- METALS & MINING China Steel Corp. 1,135,443 488 --------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS ASE Test Ltd. 42,500 150 Novatek Microelectronics Corp., Ltd. 406,800 799 Orient Semiconductor Electronics Ltd. 836,000 (a) 139
8 MORGAN STANLEY ASIA-PACIFIC FUND, INC. STATEMENT OF NET ASSETS September 30, 2002 (Unaudited) STATEMENT OF NET ASSETS (CONT'D)
VALUE SHARES (000) --------------------------------------------------------------- TAIWAN (CONT'D) SEMICONDUCTOR EQUIPMENT & PRODUCTS (CONT'D) Siliconware Precision Industries Co. 1,253,247 (a) $ 651 Taiwan Semiconductor Manufacturing Co., Ltd. 2,901,584 (a) 3,420 United Microelectronics Corp. 211,646 (a) 144 --------------------------------------------------------------- 5,303 --------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES Taiwan Cellular Corp. 208,045 192 --------------------------------------------------------------- 22,272 --------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $371,899) 296,809 --------------------------------------------------------------- PREFERRED STOCKS ( 1.4%) --------------------------------------------------------------- AUSTRALIA (0.3%) MEDIA News Corp., Ltd. 229,800 939 --------------------------------------------------------------- SOUTH KOREA (1.1%) AUTOMOBILES Hyundai Motor Co., Ltd. 64,310 716 --------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS Samsung Electronics Co., Ltd. 21,560 2,592 --------------------------------------------------------------- 3,308 --------------------------------------------------------------- TOTAL PREFERRED STOCKS (Cost $4,905) 4,247 --------------------------------------------------------------- INVESTMENT COMPANIES (0.5%) --------------------------------------------------------------- INDIA (0.5%) --------------------------------------------------------------- Morgan Stanley Growth Fund (Cost $1,744) 9,491,200 (a,c) 1,659 --------------------------------------------------------------- FACE AMOUNT (000) --------------------------------------------------------------- SHORT-TERM INVESTMENT (0.9%) --------------------------------------------------------------- UNITED STATES (0.9%) REPURCHASE AGREEMENT J.P. Morgan Securities Inc., 1.87%, dated 9/30/02, due 10/1/02 (Cost $2,581) $ 2,581 (b) 2,581 --------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) --------------------------------------------------------------- FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN (0.2%) --------------------------------------------------------------- Australian Dollar AUD 10 $ 5 Hong Kong Dollar HKD 384 49 Indian Rupee INR 3,887 80 Japanese Yen JPY 4,162 34 South Korean Won KRW 61,635 51 Taiwan Dollar TWD 12,615 362 --------------------------------------------------------------- TOTAL FOREIGN CURRENCY (Cost $581) 581 --------------------------------------------------------------- TOTAL INVESTMENTS (99.9%) (Cost $381,710) 305,877 --------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (0.1%) --------------------------------------------------------------- Other Assets $ 1,879 Liabilities (1,485) 394 --------------------------------------------------------------- NET ASSETS (100%) Applicable to 36,030,027 issued and outstanding $ 0.01 par value shares (100,000,000 shares authorized) $ 306,271 --------------------------------------------------------------- NET ASSET VALUE PER SHARE $ 8.50 ---------------------------------------------------------------
(a)--Non-income producing. (b)--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. (c)--Fund is advised by an affiliate. ADR--American Depository Receipts. 9