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Previous: JONES MEDICAL INDUSTRIES INC /DE/, 8-K, 1996-03-08 |
Next: MICROCOM INC, SC 13G/A, 1996-03-08 |
Emerging Markets Growth Fund
semi-annual report
For the Six Months Ended December 31, 1995
Seeks long-term growth of capital by investing in companies operating in
developing countries around the world
Emerging Markets Growth Fund
Fellow Shareholders:
The first half of fiscal 1996 saw continued volatility in Emerging Markets
Growth Fund's investment universe. Equity prices generally were rising as the
period began. They began retreating again in August, and in December they
turned around once more, staging a rally that continued after the close of the
fiscal half-year.
In this environment, the fund held its ground quite well. For the six months
ended December 31, the value of EMGF shares showed a very small decline of
0.8%, assuming reinvestment of an income dividend of 37 cents a share and a
$1.27 capital gain distribution that were paid in December. This compares with
a decline of 2.0% (including reinvestment) for the Morgan Stanley Capital
International Emerging Markets Free (EMF) Index, which is unmanaged and tracks
stock prices in 22 developing countries with markets open to foreign investors.
Even with these marginally negative results, Emerging Markets Growth Fund's
long-term record remains impressive as the fund approaches its 10th
anniversary. Since operations began in May 1986, EMGF has generated a total
return of 908.3% and an average compound return of 27.3% a year.
In the July-December period, a majority of the 33 markets represented in the
fund's portfolio fell in U.S. dollar terms. However, our three largest areas of
concentration Brazil, Mexico and Argentina recorded gains in dollars as well
as in local currency.
On December 31, the portfolio included investments in 328 companies. About
one-third of the holdings held throughout the period rose in price for the six
months; about two-thirds registered declines. Of the investments appearing on
our Ten Largest list (page 6), eight went up, including our five biggest
holdings which account for 14% of net assets. Our first and second largest are
Brazilian utilities: Telecomunicacoes Brasileiras (Telebras) and Centrais
Eletricas
Brasileiras (Eletrobras). Both companies have shown increased profitability,
largely as a result of higher tariffs. In our view, both should benefit if, as
we expect, Brazil takes further steps toward privatization.
The setback that took place starting in August was concentrated in Latin
America and brought to an end a rally that had been underway there since late
March. The catalyst for the turnabout was a rather unusual development in
Argentina. Highly publicized differences over policy arose between President
Carlos Menem and his finance minister, Domingo Cavallo, the architect of that
country's recovery plan. This was unsettling to some investors because Menem
and Cavallo had been counted on to work together and continue steering
Argentina toward a more capitalistic economy.
Indeed, quite a few investors began treating the Argentine situation as a proxy
for Latin America as a whole. Their uneasiness about the region was reinforced
by the increasing severity of the recession in Mexico and by a slowing of
economic growth in Brazil in response to higher interest rates. Throughout the
entire area, stock prices stayed on a downward path in September, October and
part of November.
It would be a serious mistake to underestimate Latin America's current
difficulties. We continue to believe, however, that many financially sound,
well-managed companies in the region represent good long-term investments.
Several of them have reorganized their operations and cut costs; and quite a
few of them are becoming more international in nature and are deriving a
greater share of their revenue from markets outside their home country.
During the July-December period, we made a number of modifications in the
fund's portfolio. We sold some of our Latin American holdings and added to
quite a few others, including our investments in well-capitalized banks.
In India, our organization's expanding research effort has identified what we
believe are well-managed companies that have demonstrated an ability to compete
in a deregulated business environment. As a result, we increased our
investments in that market. For the first time, an Indian stock, Mahanagar
Telephone Nigam, appears on the Ten Largest list; the company supplies phone
service to Bombay and New Delhi.
We also added to some of the fund's Malaysian investments. The main additions
were in relatively small entrepreneurial companies. We remain less enthusiastic
about most large- capitalization Malaysian stocks because of their high
valuations.
In general, we have continued to be fairly aggressive investors. In the past
half-year alone, we added more than 50 new securities, while deleting about a
dozen. Because we have been able to find attractive investment opportunities in
numerous markets, the portfolio is now more diversified than in prior years.
Our two largest areas of concentration, Brazil and Mexico, account for about
one-fourth of net assets. In the past, it was not unusual for the two largest
markets to account for nearly half of net assets.
Emerging markets stocks as a group are now selling at lower valuations than
equities in the industrialized world, despite growth prospects which, in our
view, are much more favorable. This is a direct consequence of two consecutive
years of declining prices. The lower valuations have created a favorable
environment for us as we select stocks and continue to enlarge and diversify
the portfolio.
Finally, we would like to remind shareholders that Emerging Markets Growth Fund
adheres to a policy of controlled growth. It was closed to new sales through
most of the past half-year. In January, a substantial amount of new money came
into the fund, with more than half of that coming from existing shareholders.
On page 5, you will find a description of the fund and its adviser. We hope you
find this information interesting and informative.
Sincerely,
Walter P. Stern
Chairman
Nancy Englander
President
February 9, 1996
Percent Change in Key Markets/1/
Six Months Ended 12/31/95
Expressd in Expressed in
U.S. Dollars Local Currency
<TABLE>
<CAPTION>
<S> <C> <C>
Argentina +18.7% +18.7%
Brazil +2.2 +8.0
Chile -15.0 -7.6
Colombia -19.6 -9.4
Greece -3.0 +2.0
Hong Kong +8.5 +8.4
India -15.5 -5.4
Indonesia +0.5 +3.2
Israel +6.6 +12.2
Jordan -4.3 -2.4
Malaysia -5.3 -1.4
Mexico (Free)/2/ +2.7 +26.5
Pakistan -18.2 -9.6
Peru +10.0 +14.1
Philippines(Free)/2/ -7.9 -10.3
Poland -15.6 -11.0
Portugal -5.0 -3.1
South Africa +14.9 +15.2
South Korea3 -1.4 +0.9
Sri Lanka -13.4 -7.7
Taiwan -8.4 -3.2
Thailand -8.3 -6.4
Turkey -34.2 -9.4
Venezuela (Free)/2/ +67.9 -16.1
Emerging Markets -0.8
Growth Fund
</TABLE>
/1/ Including reinvestment. All indexes are compiled by Morgan Stanley Capital
International Perspective and are unmanaged.
/2/ The "free" Mexican, Philippine and Venezuelan stock indexes consist of
securities that can be purchased by investors other than resident nationals.
/3/ 20% of the market capitalization of South Korea is included in the MSCI
Emerging Markets Free Index.
Here are the total returns and average annual compound returns with all
distributions reinvested for periods ended December 31, 1995: Since inception
on 5/30/86: +908.34%, or +27.25% a year; 5 years: +189.66%, or +23.70% a year;
12 months: -7.19%.
The figures in this report reflect past results. Share price and return will
vary, so you may lose money by investing in the fund. The shorter the time
period of your investment, the greater the possibility of loss. Fund shares are
not deposits or obligations of, or insured or guaranteed by, the U.S.
government, any financial institution, the Federal Deposit Insurance
Corporation, or any other agency, entity or person.
EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
WHERE THE FUND'S ASSETS ARE INVESTED
------------------------------------
12/31/94 06/30/95 12/31/95 MSCI Market Value
-------- -------- -------- EMF Index(1) of Holdings
12/31/1995 12/31/95
---------- (in thousands)
--------------
ASIA/PACIFIC
China................................ 1.5% 1.8% 1.4% * $77,459
Hong Kong............................ 1.3 1.0 1.0 * 59,321
India................................ 4.3 5.7 7.0 5.8 403,429
Indonesia............................ 3.8 4.2 6.4 5.4 371,036
Malaysia............................. 3.7 4.3 4.2 16.7 240,011
New Zealand.......................... .2 - - * -
Pakistan............................. 1.0 1.1 1.1 .6 62,483
Philippines.......................... 7.9 7.6 7.3 3.0 423,504
South Korea.......................... 7.0 7.0 7.8 3.3 452,447
Sri Lanka............................ .2 .2 .2 .1 9,105
Taiwan............................... 1.2 .8 2.3 * 133,513
Thailand............................. 5.8 5.5 4.9 9.8 285,285
Vietnam.............................. .1 .1 .1 * 6,206
---- ---- ---- ---- ---------
38.0 39.3 43.7 44.7 2,523,799
---- ---- ---- ---- ---------
LATIN AMERICA
Argentina............................ 8.0 8.3 8.2 3.8 476,670
Brazil............................... 20.5 13.7 15.5 11.2 895,143
Chile................................ 3.1 2.2 2.2 5.4 125,053
Colombia............................. .7 .5 .4 .8 21,175
Ecuador.............................. .2 .1 .6 * 32,321
Mexico............................... 12.0 7.6 9.6 8.3 553,204
Panama............................... - .4 .8 * 44,229
Peru................................. 1.7 1.8 1.9 1.2 112,198
Venezuela............................ .2 .1 .1 .4 5,532
---- ---- ---- ---- ---------
46.4 34.7 39.3 31.1 2,265,525
---- ---- ---- ---- ---------
EASTERN EUROPE
Czech Republic....................... - .1 .1 * 5,671
Hungary.............................. - - .4 * 19,839
Poland............................... - .1 .1 .2 8,435
Russia and former republics of the .2 .7 1.4 * 81,946
Soviet Union (2) .................. --- --- --- --- ------
.2 .9 2.0 .2 115,891
--- --- --- --- -------
OTHER MARKETS
Gabon................................ .1 - - * -
Ghana................................ .4 .4 .3 * 17,415
Greece............................... 1.0 1.0 1.4 1.3 79,506
Mauritius............................ - - .1 * 4,573
Morocco.............................. - .1 .2 * 12,791
Portugal............................. .1 .3 .3 2.0 17,854
South Africa ........................ .4 .8 2.8 16.4 162,739
Turkey............................... 1.2 2.2 1.1 1.3 63,021
United States........................ .1 .1 .1 * 5,447
Virgin Islands....................... .6 - - * -
--- --- --- ---- -------
3.9 4.9 6.3 21.0 363,346
--- --- --- ---- -------
Multi-National....................... 1.3 1.2 1.1 65,281
--- --- --- -------
Other (3)............................ 1.8 1.7 1.0 55,299
--- --- --- -------
Cash & Equivalents................... 8.4 17.3 6.6 381,821
--- ---- --- -------
TOTAL................................ 100.0% 100.0% 100.0% $5,770,962
====== ====== ====== ==========
</TABLE>
(1) Morgan Stanley Capital International Emerging Markets Free Index includes
Israel(2.8%) and
Jordan(0.2%). An asterisk indicates that this market is not included in
the index. Source:
Morgan Capital International Perspective.
(2) Includes investments in companies incorporated outside the region which
have significant operations
in the region.
(3) Includes investments in markets where the holdings represent a percentage
of net assets of less than
.05%. Also includes stocks in initial period of acquisition and
investments in companies that have
substantial assets in developing countries and/or derive a substantial
proportion of their total
revenues from either goods and services produced in, or sales made in,
developing countries.
EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
INDUSTRY DIVERSIFICATION Equity-Type Securities Bonds Percent of
------------------------------- Net Assets
Common Preferred Convertible
Stocks Stocks Bonds
- ---------------------------------------------------------------------------------
Telecommunications 11.88% 5.92% - 0.13% 17.93%
Utilities: Electric & Gas 8.52 3.52 - 0.04 12.08
Banking 10.05 0.41 0.48% 0.04 10.98
Beverages & Tobacco 5.01 0.56 - - 5.57
Energy Sources 3.40 0.67 - - 4.07
Equity Common Trusts 3.09 0.05 - - 3.14
Metals: Steel 2.19 0.54 0.09 0.14 2.96
Other Industries 28.75 3.17 0.78 3.96 36.66
72.89% 14.84% 1.35% 4.31% 93.39
====== ====== ===== =====
Short-Term Securities 7.37
Excess of liabilities (.76)
over cash and receivables -------
Net Assets 100.00%
</TABLE>
*******************
EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
<S> <C> <C>
TEN LARGEST EQUITY HOLDINGS Percent of Percent of Gain/Loss
Net Assets for Six Months
Ended 12/31/95*
(in U.S. Dollars)
- -----------------------------------------------------------------------------------
Telecomunicacoes Brasileiras (Telebras) 4.02% +46.24%
Centrais Electricas Brasileiras (Eletrobras) 3.37 +2.53
Telefonos de Mexico 2.25 +7.99
Telecom Argentina STET-France Telecom 2.05 +4.25
Korea Electric Power 1.98 +13.49
Philippine Long Distance Telephone 1.85 -24.18
Mahanagar Telephone Nigam 1.52 -18.80
Telefonica de Argentina 1.44 +9.67
Bangkok Bank 1.41 +9.96
Samsung Electronics 1.36 +13.53
</TABLE>
* The percent change reflects the increase or decrease in the market price
per share of equity securities held in the portfolio for the entire period.
The actual gain or loss on the total position in the fund may differ from
the percentage shown.
EMERGING MARKETS GROWTH FUND, INC.
<TABLE>
<CAPTION>
Investment Portfolio - December 31, 1995
<S> <C> <C> <C>
EQUITY - TYPE SECURITIES Number of Market Percent
(common and preferred stocks and convertible debentures) Shares or Value of Net
Principal Amount (000) Assets
Argentina - 7.87%
Alpargatas SA Industrial y Comercial (1)
Astra Compania Argentina de Petroleo SA 5,333,432 $2,800 .05%
Banco de Galicia y Buenos Aires SA, Class B 9,792,450 18,114 .31
(American Depositary Receipts)
Banco de Galicia y Buenos Aires SA, 1,578,840 32,564
7.00% convertible bond August 1, 2002
Banco Frances del Rio de la Plata SA $10,570,000 9,777 .73
Banco Frances del Rio de la Plata SA 644,000 5,699
(American Depositary Receipts)
BI SA (acquired 10/31/94, cost: $3,130,000) 1,472,345 39,569 .79
(Previously listed as BISA-Bemberg Industrial SA) (2)
Buenos Aires Embotelladora SA, Class B 3,130,000 3,130 .05
(American Depositary Receipts)
Central Costanera SA, Class B 1,013,600 20,906 .36
Central Puerto SA, Class B 831,599 2,561 .04
Central Puerto SA, Class B (American Depositary Receipts) 315,545 1,199
(acquired 2/27/95, cost:$755,000) (2)
Compania Naviera Perez Companc SACFIMFA, Class B 51,820 984 .04
Hidroneuquen SA (acquired 11/11/93, cost: $26,649,000) 3,660,114 19,397 .34
(1)(2)
IRSA Inversiones y Representaciones SA 26,649,468 26,649 .46
(Global Depositary Receipts)
Nortel Inversora SA, Class A, preferred 57,670 1,471 .03
(American Depositary Receipts)
(acquired 11/24/92, cost:$10,760,000) (2)
Nortel Inversora SA, Class B, preferred 1,321,820 14,196
(American Depositary Receipts)
(acquired 2/27/92, cost: $23,049,000) (2)
Sociedad Comercial del Plata SA 1,676,260 25,982 .70
Telecom Argentina STET-France Telecom SA, 4,777,000 12,658 .22
Class B
Telecom Argentina STET-France Telecom SA, 9,954,072 46,979
Class B (American Depositary Shares)
Telefonica de Argentina SA, Class B 1,495,600 71,228 2.05
Telefonica de Argentina SA, Class B 4,000,000 10,799
(American Depositary Shares)
YPF SA, Class D 2,647,900 72,155 1.44
(American Depositary Receipts)
696,800 15,068 .26
---------- ----------
453,885 7.87
---------- ----------
Brazil - 14.80%
Aracruz Celulose SA,
(American Depositary Receipts)
Banco Bradesco SA, preferred nominative 449,200 3,481 .06
Banco Bradesco SA, preferred nominative, rights, 2,593,388,300 22,686
expire January 31, 1996
Banco Nacional SA, preferred nominative 60,638,635 100 .39
Banco Nacional SA, ordinary nominative 215,995,294 1,240
Brasmotor SA, preferred nominative 2,500,000 18 .02
CBV Industria Mecanica SA, preferred nominative 100,675,187 19,996 .35
Centrais Eletricas Brasileiras SA, preferred nominative 78,120,000 31 -
(American Depositary Receipts)
Centrais Eletricas Brasileiras SA, ordinary nominative 7,574,464 102,255
Centrais Eletricas Brasileiras SA, ordinary nominative 6,983,000 1,890
(American Depositary Receipts)
CESP-Companhia Energetica de Sao Paulo, 6,708,752 90,568 3.37
preferred nominative (1)
CESP-Companhia Energetica de Sao Paulo, preferred 92,650,000 2,697
nominative (American Depositary Receipts)
(acquired 8/30/94, cost: $43,527,000)(1)(2)
CESP-Companhia Energetica de Sao Paulo, ordinary 2,972,290 24,521
nominative (1)
COFAP-Companhia Fabricadora de Pecas, 287,617,854 6,512 .58
preferred nominative
Companhia Cervejaria Brahma, preferred nominative 548,716 2,711 .05
Companhia Cervejaria Brahma, ordinary nominative 78,332,015 32,245
Companhia Cimento Portland Itau, preferred nominative 224,483 95 .56
Companhia de Tecidos Norte de Minas-COTEMINAS, 36,472,500 8,708 .15
preferred nominative
Companhia Energetica de Minas Gerais-CEMIG, 37,463,500 12,530 .22
preferred nominative (American Depositary Receipts)(1)
Companhia Energetica de Minas Gerais-CEMIG, 3,047,043 66,654
preferred nominative (American Depositary Receipts)
(acquired 9/22/94, cost: $7,886,000) (1) (2)
Companhia Siderurgica Belgo-Mineira, preferred nominative 310,323 6,788 1.27
Companhia Siderurgica Belgo-Mineira, ordinary nominative 62,020,892 3,479
Companhia Siderurgica Belgo-Mineira Luxembourg 2,086,180 155
Companhia Siderurgica Nacional, ordinary nominative 2,813,639 229 .07
(American Depositary Receipts)
Companhia Suzano de Papel e Celulose 353,842 7,165 .12
Class B, preferred nominative(American Depositary Receipts)
Companhia Vale Do Rio Doce, preferred nominative 316,633 4,591 .08
(American Depositary Receipts)
Companhia Vidrararia Santa Marina, ordinary nominative 382,801 15,599 .27
GP Capital Partners, LP 1,824,372 6,196 .11
(acquired 1/28/94, cost: $23,408,000) (1) (2) (3)
Industrias Klabin de Papel e Celulose SA, 24,000 24,000 .42
preferred nominative (American Depositary Receipts)
Iochpe-Maxion SA, preferred nominative 1,056,720 9,114 .16
(American Depositary Receipts)
Lojas Americanas SA, preferred nominative 163,004 408 .01
Lojas Americanas SA, ordinary nominative 97,709,809 2,293
Lojas Americanas SA, preferred nominative, 34,361,200 750
warrants, expire May 3, 1996 (1)
Mesbla SA, preferred nominative (1) 1,153,009 794 .07
Metal Leve SA Industria e Comercio, 79,324,845 980 .02
preferred nominative
Petrobras Distribuidora SA-BR, preferred nominative 157,884,489 1,787 .03
Petroleo Brasileiro SA-PETROBRAS, preferred nominative 723,445,000 19,357 .34
Refrigeracao Parana SA, preferred nominative 428,960,000 36,636 .63
(American Depositary Receipts)
Telecomunicacoes Brasileiras SA, preferred nominative 410,000 3,895 .07
Telecomunicacoes Brasileiras, preferred nominative 59,500,000 2,866
(American Depositary Receipts)
Telecomunicacoes de Sao Paulo SA-Telesp, 4,836,609 229,134 4.02
preferred nominative
Telecomunicacoes de Sao Paulo SA-Telesp, 341,341,977 50,234
ordinary nominative
Usinas Siderurgicas de Minas Gerais SA, 112,931,000 16,329 1.15
preferred nominative (American Depositary Receipts)
1,550,305 12,403 .21
---------- ----------
854,120 14.80
Chile - 2.17% ---------- ----------
Banco Osorno y La Union, Class A
(American Depositary Receipts)
Banmedica SA 190,556 2,644 .05
CAP SA 4,500,000 1,674 .03
Chilgener SA (American Depositary Receipts) 1,100,000 4,755 .08
Compania de Telecomunicaciones de Chile SA 1,412,257 35,306 .61
(American Depositary Receipts)
CTI Compania Tecno Industrial SA 63,700 5,279 .09
Empresa Nacional de Electricidad SA 80,245,285 4,647 .08
(American Depositary Receipts)
Enersis SA (American Depositary Receipts) 1,322,600 30,089 .53
Forestal Terranova 1,175,982 33,515 .58
Invercap SA 550,000 779 .01
Sociedad Quimica y Minera de Chile SA, Class A 1,100,000 1,653 .03
991,300 4,712 .08
---------- ----------
125,053 2.17
China - 1.34% ---------- ----------
China North Industries Investment Ltd.
(acquired 9/30/94, cost: $5,727,000) (1)(2)
China Yuchai International Ltd. 5,500,000 4,950 .09
Guang Dong Electric Development Co. Ltd., Class B 1,015,500 8,251 .14
(acquired 5/31/95, cost: $8,452,000) (2)
Harbin Power Equipment Co. Ltd Class H 15,275,000 7,310 .13
Harbin Power Equipment Co. Ltd Class H 44,999,000 6,635
(American Depositary Receipts)
(acquired 11/30/94, cost: $3,336,000)(2)
Huaneng Power International Inc., Class N 99,000 1,460 .14
(American Depositary Receipts) (1)
Maanshan Iron & Steel Co. Ltd., Class H 1,174,100 16,878 .29
(acquired 10/14/93, cost: $6,812,000)(2)
NW China Investment Ltd.(2) 23,069,500 3,222 .06
(acquired 9/22/93, cost: less than $1,000) (1)(2)
Shanghai Diesel Engine Co. Ltd., Class B 600,000 0 -
Shanghai Petrochemical Co. Ltd., Class H 5,071,000 1,876 .03
Shanghai Petrochemical Co. Ltd., Class H 76,678,600 22,065
(American Depositary Receipts)
Yizheng Chemical Fibre Co. Ltd., Class H 7,000 199 .38
Zhenhai Refining & Chemical Co. Ltd., Class H 1,408,500 317 .01
22,906,000 4,296 .07
---------- ----------
77,459 1.34
---------- ----------
Colombia - 0.35%
Banco de Bogota
Banco de Colombia SA (Global Depositary Receipts)(1) 1,031,067 4,945 .09
Banco de Colombia SA, 5.20% convertible bond 880,000 4,400
February 1, 1999 (acquired 1/27/94, cost: $15,571,000) (2)
$14,250,000 10,687 .26
---------- ----------
20,032 .35
---------- ----------
Czech Republic - 0.10%
SPT Telecom ---------- ----------
60,000 5,671 .10
---------- ----------
Ecuador - 0.11%
La Cemento Nacional CA (Global Depositary Receipts)
(acquired 6/21/94, cost: $6,615,000) (2) ---------- ----------
37,648 6,400 .11
---------- ----------
Ghana - 0.30%
Ashanti Goldfields Co. Ltd. (Global Depositary Receipts) ---------- ----------
860,000 17,415 .30
---------- ----------
Greece - 1.38%
Aluminum of Grece Industrial and Commercial SA
Hellenic Bottling Co. SA 149,670 6,425 .11
Intracom SA, preferred 1,382,945 45,109 .78
Intracom SA, ordinary 20,000 354
Katselis SA, ordinary 476,620 10,250 .18
Michaniki SA, preferred 45,000 346 .01
Michaniki SA, ordinary 252,540 2,514
Titan Cement Co. SA, ordinary 652,220 8,372 .19
146,522 6,136 .11
---------- ----------
79,506 1.38
---------- ----------
Hong Kong - 1.03%
Consolidated Electric Power Asia Ltd.
Consolidated Electric Power Asia Ltd. 18,460,000 33,544
(American Depositary Shares)
(acquired 11/29/93, cost: $868,000) (2)
New World Infrastructure 53,600 974 .60
Siu-Fung Ceramics Holdings Ltd. 11,468,497 21,952 .38
Tian An China Investments Co. Ltd. 8,295,409 1,159 .02
Tian An China Investments Co. Ltd., warrants 13,610,700 1,690
expire January 25, 1996 (1)
1,327,500 2 .03
---------- ----------
59,321 1.03
---------- ----------
Hungary - 0.34%
Graboplast Textiles Muborgyarto RT (1)
Mol Magyar Olaj Es Gazipari RT 12,000 158 -
(Global Depositary Receipts)
2,460,100 19,681 .34
---------- ----------
19,839 .34
---------- ----------
India - 6.98%
Asian Paints (India) Ltd.
Bharat Forge Co. Ltd. 564,600 5,076 .09
Bombay Dyeing and Manufacturing Co. Ltd. 3,250 12 -
(Global Depositary Receipts)
East India Hotels Ltd. 90,000 855 .01
East India Hotels (Global Depositary Receipts) 664,777 9,400
EID Parry Ltd. (Global Depositary Receipts) (1) 100,000 1,775 .19
Essar Oil Ltd. 150,000 375 .01
Essar Oil Ltd., 12.50% optionally fully convertible debenture 100 0 -
Part C, February 28, 2003
Essar Oil Ltd., 12.50% optionally fully convertible debenture INR10500 0 -
Part B, February 28, 2003
Essar Steel INR4500 0 -
Flex Industries Ltd. 3,545,000 3,906 .07
Flex Industries Ltd., units (1 unit = 2 shares + 1/2 warrant) 393,800 1,639
Grasim Industries Ltd. 157,520 655 .04
Grasim Industries Ltd. 405,300 6,203
(Global Depositary Receipts)
Hindalco Industries Ltd. 820,500 16,820 .40
Hindalco Industries Ltd. (Global Depositary Receipts) 912,450 23,363
Hindustan Lever Ltd. 579,520 19,779 .75
India Fund, Class B 514,500 9,134 .16
India Magnum Fund , Class B, nonvoting shares (1) 3,306,718 5,443 .09
Indian Aluminum Co., Ltd. 20,000 880 .02
Indian Aluminum Co., Ltd. (Global Depositary Receipts) 181,000 875
Indian Rayon & Industries, Ltd. 1,008,771 6,305 .12
Indian Rayon & Industries, Ltd. 305,300 3,700
(Global Depositary Receipts)
Indo Gulf Fertilisers and Chemicals Corp. Ltd. 298,000 3,651 .13
Indo Gulf Fertilisers and Chemicals Corp. Ltd. 2,155,200 3,127
(Global Depositary Receipts)
I.T.C. Ltd. 1,770,900 2,656 .10
Madras Cement Ltd. 1,214,600 8,673 .15
Mahanagar Telephone Nigam Ltd. 11,000 2,754 .05
Mahindra & Mahindra Ltd. 20,541,000 87,657 1.52
Mahindra & Mahindra Ltd. 1,842,416 10,903
(Global Depositary Receipts)
Mastergain Scheme 545,000 7,014 .31
Max India 6,857,200 1,990 .03
Motor Industries Co. Ltd. 411,860 2,601 .05
Nicholas Piramal India Ltd. 170,890 29,025 .50
Nippon Denro Ispat Ltd., 3.00% convertible bond April 1, 2001 325,000 2,127 .04
(acquired 3/1/94, cost: $7,817,000) (2)
Ranbaxy Laboratories Ltd. 8,750,000 4,856 .08
Ranbaxy Laboratories Ltd. 1,037,150 19,032
(Global Depositary Receipts)
Raymond Woollen Mills Ltd. 777,800 19,538 .68
(Global Depositary Receipts)
SCICI Ltd. 690,100 11,387 .20
SCICI Ltd., 3.50% convertible Eurobonds 7,941,900 8,416
April 4, 2004
Sundaram Finance $3,620,000 3,674 .21
Tata Engineering and Locomotive Co. Ltd. 153,000 788 .02
Tata Engineering and Locomotive Co. Ltd. 816,000 8,822
(Global Depositary Receipts)
Tata Engineering and Locomotive Co. Ltd., 2,002,461 26,292
(Global Depositary Receipts), warrants,
expire March 8, 1996 (1)
United Phospherous Ltd. 1,412,800 6,711 .71
United Phospherous Ltd. 976,800 8,267
(Global Depositary Receipts)
Videocon International Ltd. 174,132 2,786 .19
Videocon International Ltd. 20,100 43
(Global Depositary Receipts)
Zee Telefilms Ltd. 62,200 171 -
934,200 3,422 .06
---------- ----------
402,578 6.98
---------- ----------
Indonesia - 6.43%
Asia Pacific Resources International Ltd.(1)
PT Astra International 1,217,000 5,781 .10
PT Bakrie & Brothers 16,582,400 34,486 .60
PT Bank Internasional Indonesia 3,226,200 5,862 .10
PT Eka Gunatma Mandiri, 4.00% convertible Eurobonds 6,692,000 22,194 .38
October 4, 1997
PT Fajar Surya Wiesea $ 1,030,000 1,185 .02
PT Gudang Garam 696,500 328 .01
PT Hanjeya Mandala Sampoerna 735,000 7,691 .13
PT Indah Kiat Pulp & Paper Corp. 4,758,000 49,580 .86
PT Indofood Sukses Makmur 29,307,750 21,493 .37
PT Indo-Rama Synthetics 15,189,250 73,153 1.27
PT International Nickel Indonesia 5,562,000 20,151 .35
PT Japfa Comfeed Indonesia 5,069,500 9,544 .17
PT Jaya Real Property 700,000 345 .01
PT Kabelmetal Indonesia 2,114,000 5,739 .10
PT Kalbe Farma 1,200,000 985 .02
PT Lippo Bank 362,000 1,228 .02
PT Mayora Indah 11,765,000 18,157 .31
PT Modern Photo Film Co. 10,380,000 7,499 .13
PT Mulia Industrindo 549,900 3,190 .06
PT Pabrik Kertas Tjiwi Kimia 2,092,245 5,909 .10
Perusahaan Perseroan (Persero)PT Indonesian 1,355,962 1,247 .02
Satellite Corp. (American Depositary Receipts)
Perusahaan Perseroan (Persero)PT Telekomunikasi 887,500 32,394 .56
Indonesia, Class B (American Depositary Receipts) (1)
PT Praxair Indonesia (1) 662,300 16,723 .29
PT Semen Gresik 142,700 34 -
PT Sorini Corp 3,565,000 9,989 .17
PT Supreme Cable Manufacturing Corp. 112,500 547 .01
PT Supreme Cable Manufacturing Corp., rights, expire January. 3, 1996 (1) 811,000 1,207 .02
PT Tambang Timah Class B(Global Depositary Receipts) (1) 405,500 5
PT Tigaraksa Satria 836,270 10,161 .18
1,207,300 4,229 .07
---------- ----------
371,036 6.43
---------- ----------
Malaysia - 4.16%
Arab Malaysian Finance Bhd.
Genting Bhd. 1,642,000 6,984 .12
Genting International PLC 3,547,500 29,618 .51
Hong Leong Credit Bhd. 8,301,000 13,531 .24
IJM Corp. Bhd. (MR) 1,593,000 7,905 .14
Leader Universal Holdings Bhd. 8,075,714 12,849 .22
Malaysian International Shipping Corp. Bhd. 8,920,000 20,375 .35
Nestle (Malaysia) Sdn. Bhd. 2,210,000 5,788 .10
O.Y.L. Industries Bhd. 4,765,000 34,904 .60
Renong Bhd. 1,165,437 9,042 .16
Renong Bhd., 2.50% convertible bond January 15, 2005 7,905,000 11,706
(acquired 10/20/94, cost:$2,554,000) (2)
Renong Bhd., 2.50% convertible Eurobonds $2,550,000 2,843
January 15, 2005
Resorts World Bhd. $2,855,000 3,183 .32
Sime Darby Bhd. 1,267,000 6,786 .12
Sime UEP Properties Bhd. 16,217,000 43,110 .75
Technology Resources Industries Bhd. (1) 3,344,000 5,268 .09
UMW Holdings Bhd. 2,614,000 7,721 .13
UMW Holdings Bhd., warrants, expire January 26, 2000 (1) 6,676,359 17,879
736,159 519 .31
---------- ----------
240,011 4.16
---------- ----------
Mauritius - 0.08%
State Bank of Mauritius ---------- ----------
10,927,000 4,573 .08
---------- ----------
Mexico - 9.11%
Apasco, SA de CV, Class A
CEMEX, SA, Class A 6,326,426 26,031 .45
CEMEX, SA, Class B 2,956,762 9,817
CEMEX, SA, ordinary participation certificates 6,535,551 23,828
Cifra, SA de CV, Class A 7,609,287 25,265 1.02
Cifra, SA de CV, Class B 8,694,000 9,622
Cifra, SA de CV, Class C 10,761,580 11,238
Corporacion Geo,SA de CV, Class B(aquire 8/29/95,cost$4,981,000) (2) 11,580,192 11,761 .57
Embotelladores del Valle de Anahuac, SA de CV, Class B 1,401,268 4,142 .07
Gruma, SA de CV, Class B 546,000 498 .01
Grupo Carso, SA de CV, Class A1 864,960 2,444 .04
Grupo Financiero Banamex Accival, SA de CV, Class B 4,448,300 24,095 .42
Grupo Financiero Banamex Accival, SA de CV, Class L 29,625,550 49,839
Grupo Financiero Banamex Accival, SA de CV, 7,474,093 11,153
7.00% convertible Eurobonds December 15, 1999
Grupo Financiero Banorte, SA de CV, Class B $2,520,000 2,028 1.09
Grupo Industrial Maseca, SA de CV, Class B 10,414,957 9,737 .17
(American Depositary Receipts)
Grupo Televisa, SA, ordinary participation certificates 5,700 52 -
Grupo Televisa, SA, ordinary participation certificates 375,000 4,443
(American Depositary Receipts)
Kimberly-Clark de Mexico, SA de CV, Class A 3,042,499 68,456 1.26
Panamerican Beverages, Inc., Class A 2,087,100 31,633 .55
Sigma Alimentos, SA de CV. Class B 1,459,200 46,695 .81
Telefonos de Mexico, SA de CV, Class A 400,000 2,552 .04
Telefonos de Mexico, SA de CV, Class L 7,487,500 12,089
Telefonos de Mexico, SA de CV, Class L 11,231,250 18,075
(American Depositary Receipts)
Tubos de Acero de Mexico, SA (1) 3,133,475 99,879 2.25
Tubos de Acero de Mexico, SA 1,012,200 7,420
(American Depositary Receipts) (1)
1,883,200 13,182 .36
---------- ----------
525,974 9.11
---------- ----------
Morocco - 0.22%
Banque Commercial du Maroc
Cimenterie de l'Oriental, Class A (1) 31,505 1,998 .04
ONA SA 92,503 3,575 .06
Societe des Brasserie du Maroc 56,000 2,158 .04
Wafabank Class A 20,500 1,944 .03
72,000 3,116 .05
---------- ----------
12,791 .22
---------- ----------
Pakistan - 1.08%
Chakwal Cement (Global Depository Receipts)(1)
Hub Power Co. (Global Depositary Receipts) (1) 891,111 6,461 .11
Pakistan Telecommunication Corp. 2,066,328 35,954 .62
(Global Depositary Receipts) (1)
236,100 20,068 .35
---------- ----------
62,483 1.08
---------- ----------
Peru - 0.78%
Credicorp Ltd. (1)
Ontario-Quinta AVV (acquired 8/15/94, cost: $12,000,000) (2) 1,944,560 33,544 .58
11,694,441 11,694 .20
---------- ----------
45,238 .78
---------- ----------
Philippines - 7.30%
Ayala Corp., Class B
Ayala Corp., Class B (Global Depositary Shares) 22,545,827 27,526
Ayala Land, Inc., Class B 514,976 4,635 .56
Bacnotan Consolidated Industries, Inc. 18,285,962 22,326 .39
Bacnotan Consolidated Industries, Inc., 5.50% convertible 336,235 1,924
bond June 21, 2004 (acquired 6/8/94, cost: $4,479,000) (2)
Benpres Holdings Corp. $4,500,000 3,825 .10
(Global Depositary Receipts) (1)
C&P Homes Inc., (1) 793,210 3,768 .07
International Container Terminal Services Inc. 7,251,900 5,326 .09
International Container Terminal Services Inc., 6.00% convertible 5,787,730 3,036
bond, February 19, 2000 (acquired 2/18/93, cost: $4,000,000) (2)
JG Summit Holdings, Inc., Class B $4,000,000 3,600 .11
JG Summit Holdings, Inc., Class B 28,256,600 7,762
(Global Depositary Shares)
JG Summit Holdings, Inc., 20,000 480
3.50% convertible bond December 23, 2003
Keppel Philippines Holdings,Inc., Class B $15,270,000 11,110 .34
Kepphil Shipyard, Inc. (1) 226,740 95 -
Manila Electric Co., Class B 136,960 7 -
Metropolitan Bank and Trust Co. 1,979,590 16,163 .28
Petron Corp. 1,857,350 36,141 .63
Petron Corp. (Global Depositary Receipts) 6,071,250 3,127
Philippine Commercial International Bank, Inc. 377,075 7,919 .19
Philippine Long Distance Telephone Co., ordinary 1,066,200 9,844 .17
Philippine Long Distance Telephone Co. 86,250 4,689
(American Depositary Receipts)(1)
Philippine Long Distance Telephone Co., convertible preferred, 1,531,305 82,882
Series II (Global Depositary Receipts)
Philippine Long Distance Telephone Co., convertible 474,000 14,694
preferred Series III (Global Depositary Shares)
Philippine National Bank 87,000 4,502 1.85
Pilipino Telephone Corp.(acquired 6/26/92, cost: $10,320,000)(1)(2) 1,233,072 13,643 .24
PR Holdings Inc., subscription rights (aquired 7/8/92, 32,504,000 32,864 .57
cost: $9,835,000)(1)(2)
San Miguel Corp., Class B 2,236,600 9,437 .16
Southeast Asia Cement Holdings (1) 20,486,772 69,957 1.21
Universal Robina Corp. 39,000,000 5,059 .09
Universal Robina Corp. (acquired 3/2/94, cost: $13,032,000) (2) 9,092,400 4,510
20,400,000 10,118 .25
---------- ----------
420,969 7.30
---------- ----------
Poland - 0.11%
Zaklady Piwowarskie w Zywcu SA (Previously listed as Zywiec) ---------- ----------
94,811 6,541 .11
---------- ----------
Portugal - 0.31%
Portugal Telecom ,SA
Portugal Telecom SA (American Depositary Receipts)(1) 100,000 1,879
Televisao Independente SA (1) 815,000 15,485 .30
105,500 490 .01
---------- ----------
17,854 .31
---------- ----------
RUSSIA AND FORMER REPUBLICS OF THE SOVIET UNION - 1.42%
Abacan Resource Corp. (1)
Abacan Resource Corp. (1) 3,000,000 8,470
Chernogorneft (Russian Depositary Trust Certificate) 2,803,000 7,533 .28
Gez Investment Holding Ltd.,Class A 70 4,641 .08
(aquired 9/11/95,Cost: $230,000)(1)(2)
Gez Investment Holding Ltd.,Class B 2,870 230
(aquired 9/11/95,Cost: $12,623,000)(1)(2)
J P Kenny Exploration & Production Ltd. 157,793 12,623 .22
Lukoil Holding (Russian Depositary Trust Certificate) 6,138,140 15,443 .27
New Century Capital Partners,L.P. 12 1,386 .02
(acquired 12/7/95,cost: $19,129,000)(!)(2)(3)
Russian Telecommunications Development Corp. 19,128,900 19,129 .34
(acquired 12/22/93, cost: $3,800,000) (1) (2)
Russian Telecommunications Development Corp., 380,000 3,800
nonvoting ordinary (acquired 12/22/93, cost: $6,200,000) (1) (2)
Star Mining Corp. NL 620,000 6,200 .17
19,740,000 2,491 .04
---------- ----------
81,946 1.42
---------- ----------
South Africa - 2.57%
AECI Ltd.
International Pepsi-Cola Bottling Investments 719,100 4,341 .08
(aquired 12/18/95,cost:$10,000,000)(1)(2)(3)
Iscor Ltd. 100,000 10,000 .17
Malbak Ltd. 20,477,857 18,430 .32
Nedcor Ltd. 2,653,833 18,386 .32
Nedcor Ltd., 8,600 148
(Global Depositary Receipts)
Nedcor Ltd., warrants, expire September 30, 1997 (1) 1,227,736 20,417
Polifin Ltd. 306,934 1,688 .38
Rembrandt Group Ltd. 677,000 1,087 .02
Sasol Ltd. 808,000 7,760 .13
South Africa Capital Growth Fund, Class D 6,176,609 50,589 .88
(acquired 8/25/95,cost:$13,650,000)(1)(2)(3)
South Africa Capital Growth Fund, Class A 13,650 13,650
(acquired 8/25/95,cost:$1,900,000)(1)(2)(3)
1,900 1,900 .27
---------- ----------
148,396 2.57
---------- ----------
South Korea - 7.84%
Cheil Foods & Chemicals, Inc., nonvoting preferred
Cheil Foods & Chemicals, Inc., 3.00% convertible 70,500 2,463
Eurobonds December 31, 2006
Daehan Asia Trust (International Depositary Receipts) 2,365,000 3,051 .10
Daehan Korea Trust (International Depositary Receipts) 2,820 3,384 .06
Daewoo Corp. 500 450 .01
Daewood Securities Co., Ltd., nonvoting preferred 257,738 2,990 .05
Daewood Securities Co., Ltd.,ordinary 421,270 7,181
HAITAI STORES CO., LTD. 415,674 10,825 .31
Hanil Bank 16,747 149 -
Hansol Paper Co., Ltd., preferred 3,488,280 40,212 .70
Hansol Paper Co., Ltd., ordinary 8,663 181
Hyundai Motor Co., nonvoting preferred,new 76,089 2,913 .05
(Global Depositary Receipts) (1)
Hyundai Motor Co., nonvoting preferred 586,800 9,095
(Global Depositary Receipts)
Korea Asia Fund Ltd. 508,000 7,747 .28
(International Depositary Receipts) (1)
Korea Electric Power Corp. 300 3,337 .06
Korea Electric Power Corp. 2,478,790 108,265
(American Depositary Receipts)
Korea First Bank 225,000 6,019 1.98
Korea Long Term Credit Bank 2,174,850 19,346 .34
Korea Mobile Telecommunications Corp. 349,841 10,272 .18
Korea Mobile Telecommunications Corp. 9,590 10,631
(Global Depositary Receipts)(1)
Korea Pacific Trust (International Depositary Receipts) (1) 45,300 2,005 .22
Kyongnam Bank 3,000 3,900 .07
Kyongnam Bank, new 600,000 6,126
LG Chemical Ltd., preferred 133,607 1,352 .13
LG Electronics Inc. 330,000 3,867 .07
LG Electronics, Inc. nonvoting preferred 48,840 1,700
LG Electronics, non-voting preferred 546,500 12,981
(Global Depositary Receipts)
LG Electronics Inc. new 756,100 9,829
LG Electronics Inc. new 2,304 79
(Global Depositary Receipts) (1)
LG Securities Co. Ltd. 16,896 265 .43
LG Securities Ltd., preferred 138,648 2,467
Pacific Chemical Industrial Co. Ltd. 590,460 6,470 .15
Pohang Iron & Steel Co., Ltd. 165,440 3,860 .07
Pohang Iron & Steel Co., Ltd. 346,650 24,300
(American Depositary Receipts)
Samsung Electronics Co., Ltd. 201,000 4,397 .50
Samsung Electronics Co., Ltd., new, 3/95 192,704 35,116
Samsung Electronics Co., Ltd., new, 8/95 40,313 7,294
Samsung Electronics Co., Ltd., nonvoting preferred, new 3/95 3,830 695
Samsung Electronics Co., Ltd., nonvoting preferred 12,515 1,451
Samsung Electronics Co., Ltd., nonvoting preferred 70,695 8,346
(Global Depositary Shares)
Samsung Electronics Co., Ltd.,ordinary 280,922 16,434
(Global Depositary Shares)
Seoul Asia Index Trust (International Depositary Receipts) 103,594 9,945 1.36
Seoul Horizon Trust 80 940 .02
Shinhan Bank 531,000 9,160 .16
Ssangyong Investments & Securities, Co., Ltd. 186,650 4,060 .07
Ssangyong Investments & Securities, Co., Ltd., nonvoting preferred 4,000 72
Ssangyong Oil Refining Co. Ltd. 61,090 642 .01
Taihan Electric Wire Co. 298,000 8,452 .15
Yukong Ltd. 123,148 3,334 .06
Yukong Ltd., new 309,755 10,702
Yukong Ltd., nonvoting preferred, 28,106 967
(Global Depositary Receipts)
Yukong Ltd., ordinary 230,000 2,300
(Global Depositary Receipts)
27,558 428 .25
---------- ----------
452,447 7.84
Sri Lanka - 0.16% ---------- ----------
Asian Hotel Corp.
Development Finance Corp. of Ceylon 6,107,500 1,655 .03
National Development Bank 1,258,310 7,055 .12
96,200 395 .01
---------- ----------
9,105 .16
Taiwan - 2.31% ---------- ----------
Acer Inc. (1)
Acer Inc.(1) 2,130,000 4,918
(Global Depositary Receipts)
Acer Inc., 4.00% convertible Eurobonds June 10, 2001 735,000 9,555
Advance Semiconductor Engineering, Inc. $2,380,000 6,902 .37
Advance Semiconductor Engineering, Inc. 2,441,000 5,904
(Global Depositary Receipts)(1)
Chia Hsin Cement Corp. 360,000 4,761 .18
(Global Depositary Receipts)
China Steel Corp. 645,700 5,375 .09
China Steel Corp. 7,900,000 6,312
(American Depositary Receipts)
China Steel Corp . 813,000 14,126
(Global Depositary Shares)
Hocheng Corp Ltd., (Global Depositary Receipts) 300,000 5,213 .45
Nan Ya Plastics Corp. 112,361 1,101 .02
R.O.C. Taiwan Fund 700,000 1,062 .02
Siliconware Precision Industries Co.,Ltd.(1) 26,000 273 -
Siliconware Precision 1,485,000 3,973
(Global Depositary Receipts)(1)
Sin-Yih Ceramics Co. Ltd. 13,000 215 .07
Taiwan American Fund, nonvoting, preferred (1) 1,500,000 2,298 .04
Taiwan Opportunities Fund, series C (1) 600,000 6,300 .11
Taiwan Semiconductor Manufacturing Co. Ltd..(1) 200,000 2,130 .04
Ton Yi Industrial Corp.(1) 14,815,000 46,422 .80
U-Ming Marine Transport Corp.(1) 3,803,640 5,004 .09
1,570,000 1,669 .03
---------- ----------
133,513 2.31
---------- ----------
Thailand - 4.94%
Alphatec Electronics Public Co. Ltd.
(acquired 6/26/95,cost:$8,516,000)(2)
Ayudhya Jardine CMG Life Assurance 520,000 7,434 .13
(Formerly Ayudha Life Assurance Co.,Ltd.)
Bangkok Bank Public Co. Ltd. 84,547 349 .01
Bangkok Bank Public Co.Ltd., 3.25% convertible bond 6,360,240 77,293
March 3, 2004 (acquired 8/4/94, cost: $961,000) (2)
Bangkok Bank Public Co. Ltd., 3.25% convertible $1,000,000 1,060
Eurobond March 3, 2004
Bangkok Metropolitan Bank Public Co. Ltd. $3,630,000 3,848 1.41
Bank of Ayudhya Co. Ltd. 1,052,500 982 .02
Charoen Pokphand Feedmill Public Co. Ltd. 4,224,240 23,654 .40
Dusit Thani Public Corp. Ltd. 1,575,600 7,696 .13
Electricity Generating Authority of Thailand (1) 990,000 1,455 .03
Electricity Generating Authority of Thailand, 7,392,217 25,247
local registered (1)
Industrial Finance Corp. of Thailand 22,530 67 .44
MBK Properties & Development Co. Ltd. 3,593,800 12,203 .21
Nakhornthai Integrated Steel Co., Ltd. 4,000,000 5,639 .10
Post Publishing Public Co. Ltd. 11,213,400 12,915 .22
SCF Finance and Securities Public Co.Ltd. 1,010,000 5,616 .10
Serm Suk Public Co. Ltd. 92,451 292 .01
Serm Suk Public Co. Ltd., local registered 210,166 3,255
Siam City Bank Public Co. Ltd. 64,960 1,006 .07
Siam City Credit Finance and Securities Public Co. Ltd. 8,140,010 9,375 .16
Siam Commercial Bank, Public Co.Ltd. 73,417 347 .01
Thai Farmers Bank Public Co. Ltd. 1,340,200 17,671 .31
Thai Military Bank Public, Ltd. 4,836,600 48,789 .85
Wattachak Public Co. Ltd., 3,243,684 13,140 .23
3.50% convertible bond December 6, 2003
$6,400,000 5,952 .10
---------- ----------
285,285 4.94
Turkey - 1.09% ---------- ----------
Adana Cimento Sanayii TAS, Class A
Adana Cimento Sanayii, TAS Class C 24,145,229 3,127
Arcelik AS 9,611,136 232 .06
Eczacibasi Ilac Sanayi ve Ticaret AS (1) 49,620,352 3,986 .07
Ege Biracilik ve Malt Sanayii AS 1,776,600 100 -
KOC Holding AS, ordinary 27,959,940 9,626 .17
Migros Turk 59,021,018 8,418 .15
Netas Northern Electric Telekomunikasyon AS 3,720,000 2,836 .05
Turkiye Garanti Bankasi AS 24,700,000 6,985 .12
Turkiye Garanti Bankasi AS 66,826,513 5,587
(American Depositary Receipts) (1)
Turkiye Sise ve Cam Fabrikalari AS 449,000 3,816 .16
Yapi ve Kredi Bankasi AS 132,643,312 15,439 .27
70,000,000 2,869 .04
---------- ----------
63,021 1.09
---------- ----------
United States - 0.09%
Atlantic Tele-Network Inc.(1)
Freeport-McMoRan Copper & Gold Inc., Class A 270,700 2,927 .05
90,000 2,520 .04
--------- --------
5,447 .09
---------- ----------
Venezuela - 0.10%
Compania de Inmuebles Y Valores Caracas (1)
Fabrica Nacional de Cementos SACA 72,655,270 0 -
Mavesa SA (American Depositary Receipts) 14,531,054 1,068 .02
(acquired 10/28/93, cost:$4,385,000) (2)
Venezolana de Cementos, SACA I 578,441 2,025 .04
Venezolana de Cementos, SACA II 1,579,719 1,938
Venezolana de Prerreducidos Caroni CA 321,192 345 .04
(Global Depositary Shares)
46,300 156 -
---------- ----------
5,532 .10
---------- ----------
Vietnam - 0.11%
Vietnam Frontier Fund
(acquired 7/21/94, cost: $3,000,000) (1) (2)
Vietnam Investment Fund, preferred, units 291,300 3,000 .05
(acquired 8/4/94, cost: $3,206,000) (1) (2) (3)
Vietnam Investment Fund, ordinary, units 30 3,206
(acquired 8/4/94, cost: less than $1,000) (1) (2) (3)
6 0 .06
---------- ----------
6,206 .11
---------- ----------
Multi National - 1.14%
Emerging Markets Gold Fund
(acquired 1/28/94, cost: $9,563,000) (1) (2) (3) ---------- ----------
New Europe East Investment Fund, Class B 9,563 9,563 .17
(acquired 6/4/93, cost $54,500,000)(1)(2)(3)(4)
436 55,718 .97
--------- -------
65,281 1.14
Miscellaneous - 0.96%
Equity-type securities in initial period of acquisition(5) ---------- ----------
55,299 .96
---------- ----------
TOTAL EQUITY-TYPE SECURITIES (cost: $4,447,842,000)
---------- ----------
5,140,227 89.08
---------- ----------
Principal
Amount
BOND & NOTES (000)
Argentina - 0.39%
Republic of Argentina Bocon PIK
4.57% April 1, 2001(6)
Republic of Argentina Bearer Bond Series L 6.8125% ARP2000 1,088 .02
March 31, 2005(6)
Republic of Argentina Eurobond Series L 13,000 9,262 .16
5.00% March 31, 2023 (6)
Telecom Argentina $11,000 6,297 .11
10.00% November 15, 2002
5,750 6,138 .10
---------- ----------
22,785 .39
---------- ----------
Brazil - 0.71%
Federal Republic of Brazil Capitalization Bond PIK
8.00% April 15, 2014
Federal Republic of Brazil Debt Conversion Bond Series LI 23,612 13,488 .23
6.875% April 15, 2012 (6)
Federal Republic of Brazil Bond Series Z 43,000 24,671 .43
4.25% April 15, 2024 (6)
Republic of Minas Gerais Series A 2,250 1,190 .02
7.875% February 10, 1999
Republic of Minas Gerais Series B 1,500 1,260 .02
8.250% February 10, 2000
500 414 .01
---------- ----------
41,023 .71
Colombia - 0.02% ---------- ----------
Communicacio Cellular SA
0%/13.125% November 15, 2003 (1)(7)
2,000 1,143 .02
---------- ----------
Ecuador - 0.45%
Republic of Equador Discount Bond
6.8125% February 28, 2005(6)
Republic of Equador Past Due Interest Bonds 65,919 11,378 .20
6.8125% February 27, 2015(6)
43,669 14,543 .25
---------- ----------
25,921 .45
---------- ----------
India - 0.01%
Flex Industries 13.50% December 31, 2004
INR 29,929 851 .01
---------- ----------
Mexico - 0.47%
Banco Nacional de Com ercio Exterior International Finance
7.250% February 2, 2004
MC-Cuernavaca Toll Road Trust 3,250 2,515 .04
9.250% July 25, 2001
Tubos de Acero de Mexico, 1,571 1,074 .02
13.75% December 8, 1999
United Mexican States Discount Bond Series A 7,500 7,594 .13
6.76563% December 31, 2019(6)
United Mexican States Discount Bond Series B 16,250 11,720 .08
6.76563% December 31, 2019(6)
6,000 4,327 .20
---------- ----------
27,230 .47
---------- ----------
Panama - 0.78%
Republic of Panama/Agent-Bank of America NTSA
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA)(1)(6)(8)(9)
Republic of Panama/Agent-Bank of America NTSA/ 28,921 12,289 .21
Loan Participation Agreements
(Participation-Citibank, NA)(1)(6)(8)(9)
Republic of Panama/Agent-Bank of America NTSA/ 28,400 12,060 .21
Loan Participation Agreements
(Participation-Chase Manhattan Bank NA
(1)(6)(8)(9)
Republic of Panama/Agent-Generale Bank NV SA/ 6,993 2,880 .05
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA)(1)(6)(8)(9)
Republic of Panama/Agent-Generale Bank NV SA / 4,956 2,113 .04
Loan Participation Agreements
(Participation-Citibank, NA)(1)(6)(8)(9)
Republic of Panama/Agent-Chase Manhattan Bank NA/ 848 360 .01
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA)(1)(6)(8)(9)
Republic of Panama/Agent-MUL/ 6,660 2,828 .06
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA)(1)(6)(8)(9)
Republic of Panama/Agent-First Chicago Limited/ 314 144 -
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA)(1)(6)(8)(9)
Republic of Panama/Agent-Bank of America NTSA/ 1,482 626 .01
Loan Participation Agreements
(Participation-Citibank, NA)(!)(6)(8)(9)
Republic of Panama Interest Reduction Bond 21,325 9,000 .16
3.50% due 12/29/49
4,250 1,929 .03
---------- ----------
44,229 .78
---------- ----------
Peru - 1.16%
Republic of Peru /Agent-Bankers Trust Company/
Loan Participation Agreements
(Participation-Citibank, NA.) (1)(6)(8)(9)
Republic of Peru /Agent-Chemical Bank/ 10,764 3,780 .07
Loan Participation Agreements
(Participation-Citibank, NA)(1)(6)(8)(9)
Republic of Peru/Agent-Chemical Bank/ 3,544 1,260 .02
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA) (1)(6)(8)(9)
Republic of Peru/Agent-Citibank, NA/ 4,085 1,440 .02
Loan Participation Agreements
(Participation-Salomon Brothers) (1)(6)(8)(9)
Republic of Peru/Agent-Citibank, NA/ 20,278 6,444 .11
Loan Participation Agreements
(Participation-Citibank, NA) (1)(6)(8)(9)
Republic of Peru/Agent-Citibank, NA/ 20,971 7,020 .12
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA) (1)(6)(8)(9)
Republic of Peru/Agent-Morgan Guaranty Trust/NA/ 41,364 14,562 .25
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA) (1)(6)(8)(9)
Republic of Peru/Agent-Wells Fargo Bank 8,720 3,060 .05
Loan Participation Agreements
(Participation-Citibank, NA) (1)(6)(8)(9)
Republic of Peru/Agent-Wells Fargo Bank/ 20,657 7,326 .13
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA) (1)(6)(8)(9)
Republic of Peru/Agent-Wells Fargo Bank/ 35,534 12,528 .22
Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA) (1)(6)(8)(9)
26,550 9,540 .17
---------- ----------
66,960 1.16
---------- ----------
Philippines - 0.04%
Subic Power Corp. 9.50% December 28, 2008
2,670 2,535 .04
---------- ----------
2,535 .04
---------- ----------
Poland - 0.03%
Republic of Poland Discount Bond
7.125% October 27, 2024 (6)
2,500 1,894 .03
South Africa - 0.25%
Republic of South Africa 13.00% August 31, 2010
56,750 14,343 .25
TOTAL BONDS AND NOTES (cost: $ 206,915,000) ---------- ----------
248,914 4.31
---------- ----------
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 4.02%
Abbey National North America 5.72% due 01/29/96
Bayerische Landesbanke Girozentrale 5.66%-5.70%due01/3-02/05/96 10,000 9,954 .17
Ford Credit Europe PLC 5.71% due 1/17/96 39,800 39,667 .69
Glaxo Welcome PLC.5.65%-5.70% due 01/22-02/14/96 11,800 11,769 .20
Halifax Building Society. 5.67% due 1/16/96 30,100 29,959 .52
National Australia Funding(Dela) Inc.5.70%-5.75%due 1/11-1/22/96 50,000 49,872 .86
Nestles Capital Corp. 5.56%-5.69% due 01/30/96-02/08/96 26,400 26,338 .46
Toyota Motor Credit Corp. 5.68-5.71% due 01/12/96-02/09/96 30,800 30,631 .53
UBS Finance ( Delaware ) Inc. 5.85% due 01/02/96 26,550 26,401 .46
7,600 7,598 .13
---------- ----------
232,189 4.02
Federal Agency Discount Notes - 0.17%
Federal Farm Credit 5.55% due 02/02/96 ---------- ----------
10,000 9,949 .17
---------- ----------
Certificates of Deposit - 1.77%
Banque Nationale de Paris 5.780% due 02/01/96
Bayerische Hypotheken-Und Wechsel-Bank AG 37,000 36,999 .64
5.81% due 1/18/96
Deutsche Bank 5.77% due 01/19/96 25,000 25,000 .43
National Westminister Bank PLC. 5.78% due 01/16/96 15,000 15,000 .26
Societe Generale 5.78% due 01/16/96 10,000 10,000 .17
15,200 15,200 .27
---------- ----------
102,199 1.77
---------- ----------
Non-U.S. Government Short -Term Obligations - 0.45%
Certificados de la Tesoreria due 1/18/96 ---------- ----------
Hidroelectrica Piedra DelAguila, S.A. 15.00% due 11/27/96 10,460.00 13,353 .24
Mesbla SA, Series 2, 13.25% convertible 6,500,000 6,500 .11
bond November 1, 1996
Polish Government Treasury Bills due 4/18-7/31/96 R$ 25,190,000 251 -
PLZ 15,800 5,933 .10
---------- ----------
26,037 .45
Non-U.S. Currency - 0.96%
Chilean Peso
New Taiwanese Dollar CHP 5,940,689 14,632 .26
NT$ 1,105,164 40,503 .70
---------- ----------
55,135 .96
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost:$429,487,000)
425,509 7.37
TOTAL INVESTMENT SECURITIES (cost: $5,084,244,000) ---------- ----------
Excess of liabilities over cash and receivables 5,814,650 100.76
43,688 .76
NET ASSETS ---------- ----------
$5,770,962 100.00
</TABLE>
1. Non- income-producing securities.
2. Purchased in a private placement transaction: resale to the public may
require registration, and no
right to demand registration under U.S. law exists. As of December 31,
1995, the total market value
and cost of such securities was $394,170,000 and
$407,230,000,respectively, and the market value
represented 6.83% of net assets.
3. Includes an unfunded capital commitment representing a binding commitment
made by the fund which may
be paid in the future.
4. A Luxembourg-based, closed-end investment fund seeking long-term capital
appreciation through
investments in Eastern and Central Europe and the former Soviet Union, and
for which Capital
International, Inc. serves as the investment advisor.
5. Does not include an agreement, totaling $43,000,000, to purchase over a
multi-year period shares of
New Asia East Investment Fund, a company managed by Capital International,
Inc. The commitment to
purchase will not be recorded until certain regulatory approvals are
obtained.
6. Coupon rate may change periodically.
7. Respresents a zero coupon bond which will convert to a coupon-bearing
security at a later date.
8. Security is currently in default.
9. Participation interests were acquired through the financial instituition
indicated parenthetically.
Non-U.S. Currency Symbols:
ARP - Argentine Peso
C$ - Canadian Dollar
CHP - Chilean Peso
INR - Indian Rupee
NT$ - New Taiwanese Dollar
PHP - Philippine Peso
R$ - Brazilian Real
ZAR - South African Rand
See Notes to Financial Statements
EMERGING MAREKTS GROWTH FUND
EQUITY-TYPE SECURITIES ADDED TO THE EQUITY-TYPE SECURITIES ELIMINATED
PORTFOLIO SINCE JUNE 30, 1995 FROM THE PORTFOLIO SINCE JUNE 30, 1995
- ----------------------------------- --------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Acer Akbank Turk
Advanced Semiconductor Engineering Banco Comercial Portugues
AECI Banco de Credito del Peru (1)
Aluminum de Grece Industrial and Commercial Essar Gujarat
Arab-Malaysian Finance Hopewell Holdings
Asia Pacific Resources International Hutchison Delta Finance
Asian Paints (India) PT Inti Indorayon Utama
Banco Nacional ITI Sociedade de Investimentos Turisticos na
Banco Osorno y La Union Ilha da Madeira
Banque Commerciale du Maroc Medya Holding
Bharat Forge Samsung Co.
Bombay Dyeing and Manufacturing Tan Chong Motor Holdings
C & P Homes Tolmex
Chernogorneft Tung Ho Steel Enterprise
Companhia de Tecidos Norte Minas - COTEMINAS
Corporacion Geo
PT Eka Gunatma Mandiri
Essar Oil
PT Fajar Surya Wiesea
Gez Investments
PT Hanjaya Mandala Sampoerna
Hindustan Lever
Hong Leong Credit
PT Indo-Rama Synthetics
International Pepsi-Cola Bottling Investments
Iscor
Korea Mobile Telecommunications
PT Lippo Bank
Lukoil Holding
Malbak
Mol Magyar Olaj Es Gazipari
PT Mulia Industrindo
New Century Capital Partners
New World Infrastructure
ONA
Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia
Polifin
Rembrandt Group
SCF Finance and Securities
PT Semen Gresik
Siam City Credit Finance and Securities
Siliconware Precision Industries
Sin-Yih Ceramic
Societe des Brasseries du Maroc
PT Sorini
South Africa Capital Growth Fund
Southeast Asia Cement
State Bank of Mauritius
Taiwan American Fund
Taiwan Opportunities Fund
Taiwan Semiconductor Manufacturing
PT Tambang Timah
Ton Yi Industrial
U-Ming Marine Transport
Wafabank
</TABLE>
(1) Banco de Credito del Peru shares were exchanged for
holdings in Credicorp.
<TABLE>
<CAPTION>
<S> <C> <C>
EMERGING MARKETS GROWTH FUND
Statement of Assets and Liabilities
at December 31, 1995 (dollars in thousands)(Unaudited)
- --------------------------------------------------------------------------
Assets:
Investment securities at market
(cost: $5,084,244) ............... $5,814,650
Cash ............................... 440
Receivables for--
Sales of investments ............. $32,914
Sales of fund's shares 14,979
Open forward currency contracts 41
Dividends and accrued interest ... 27,084 75,018
------------------ ----------------
5,890,108
Liabilities:
Non-U.S. taxes payable 5,056
Payables for--
Purchases of investments ......... 31,363
Unfunded capital commitments 74,322
Management services .............. 3,273
Accrued expenses ................. 5,132 114,090
------------------- ----------------
119,146
----------------
Net Assets at December 31, 1995 -- $5,770,962
Equivalent to $50.28 per share on ================
114,773,911 shares of $0.01 par
value capital stock outstanding
(authorized capital stock --
200,000,000 shares).........
Statement of Operations for the Six Months Ended December 31, 1995
(dollars in thousands)(Unaudited)
- --------------------------------------------------------------------------
Investment Income:
Income:
Dividends ........................ $37,605
Interest ......................... 35,789 $73,394
------------------
Expenses:
Management services fee .......... 19,736
Custodian fee .................... 4,273
Registration statement and 545
prospectus.......................
Auditing and legal fees .......... 87
Reports to shareholders .......... 4
Taxes other than federal 1
income tax .....................
Postage, stationery and supplies 1
Other expenses ................... 301 24,948
------------------ ----------------
Income before non-U.S. taxes........ 48,446
Non-U.S. taxes...................... (364)
----------------
Net investment income .............. 48,082
----------------
Realized Gain and Unrealized 29,360
Depreciation on Investments:
Realized gain before non-U.S. taxes.....
Non-U.S. taxes...................... (531)
------------------
Net realized gain................. 28,829
Net change in unrealized (129,622)
depreciation on investments.....................
Net unrealized appreciation on open 41
forward currency contracts......... ------------------
Net unrealized depreciation ...... (129,581)
Non-U.S. taxes.. 2,005 (127,576)
------------------ ----------------
Net realized gain and unrealized (98,747)
depreciation on investments..... ----------------
Net Decrease in Net Assets Resulting ($50,665)
from Operations ................. ================
Statement of Changes in Net Assets (dollars in thousands)
- ---------------------------------------------------------------------------
Six Months Ended Year Ended
December 31, 1995(1) June 30, 1995
------------------ ----------------
Operations: $85,015
Net investment income.............. $48,082
Net realized gain on 28,829 305,354
investments .......................
Net unrealized depreciation (127,576) (486,957)
on investments ................... ------------------ ----------------
Net decrease in net assets (50,665) (96,588)
resulting from operations ...... ------------------ ----------------
Dividends and Distributions Paid (40,981) (61,624)
to Shareholders:
Dividends from net
investment income ................
Distributions from net realized (140,664) (456,090)
gain on investments .............. ------------------ ----------------
Total dividends and (181,645) (517,714)
distributions .................. ------------------ ----------------
Capital Share Transactions: 251,679 1,502,619
Proceeds from shares sold:
4,675,641 and 26,840,022 shares,
respectively.....................
Proceeds from shares issued in 179,783 513,177
reinvestment of net investment ------------------ ---------------
income dividends and
distributions of net realized
gain on investments:
3,678,055 and 8,593,036 shares,
respectively......................
Net increase in net assets 431,462 2,015,796
resulting from capital share ------------------ ----------------
transactions ...................
Total Increase in Net Assets 199,152 1,401,494
Net Assets: 5,571,810 4,170,316
Beginning of period ............... ------------------ ----------------
End of period (including undistributed net investment income and excess distributions over net investment income: $4,691 and
$2,410,respectively)................ $5,770,962 $5,571,810
================== ===============
</TABLE>
(1) Unaudited.
See Notes to Financial Statements
EMERGING MARKETS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Emerging Markets Growth Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940 as a closed-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price. In cases where
securities are traded on more than one exchange, the securities are valued on
the exchange designated by or under the authority of the Board of Directors as
the primary market. Bonds and notes are valued at prices obtained from a
bond-pricing service provided by a major dealer in bonds, when such prices are
available; however, in circumstances where the investment adviser deems it
appropriate to do so, such securities will be valued at the mean of their
representative quoted bid and asked prices or, if such prices are not
available, at prices for securities of comparable maturity, quality, and type.
Short-term securities with original or remaining maturities in excess of 60
days, including forward currency contracts, are valued at the mean of their
quoted bid and asked prices. Short-term securities with 60 days or less to
maturity are amortized to maturity based on their cost to the fund if acquired
within 60 days of maturity or, if already held by the fund on the 60th day,
based on the value determined on the 61st day. Securities for which market
quotations are not readily available (including restricted securities which are
subject to limitations as to their sale), or which are not deemed to represent
market value, are valued at fair value as determined in good faith by the
Valuation Committee of the Board of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis. Discounts
on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Investment securities, cash balances, and other assets and liabilities,
including forward currency contracts, denominated in non-U.S. currencies are
recorded in the financial statements after translation into U.S. dollars
utilizing rates of exchange on the last business day of the period. Purchases
and sales of investment securities, dividend and interest income, and certain
expenses are calculated at the rates of exchange prevailing on the respective
dates of such transactions. Gains and losses that arise from changes in
exchange rates are not segregated from gains and losses that arise from changes
in market prices of investments.
Unfunded capital commitments represent agreements which obligate the fund
to meet capital calls in the future. Payment would be made when a capital call
is requested. Capital calls can only be made if and when certain requirements
have been fulfilled; thus, the timing of such capital calls cannot be readily
determined. Unfunded capital commitments are recorded at the amount that would
be paid when and if capital calls are made.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $4,273,000 includes $119,000 that was paid by these
credits rather than in cash.
2. Investing in securities of issuers in a variety of developing countries
involves certain special investment risks, which may include investment and
repatriation restrictions, currency volatility, government involvement in the
private sector, limited investor information, shallow securities markets,
certain local tax law considerations, and limited regulation of the securities
markets.
Dividend income, and interest income, net realized gain and net unrealized
gain, of the fund derived in Chile are subject to certain non-U.S. taxes at
rates of 20% and 35%, respectively. Net realized gain and net unrealized gain
of the fund derived in India are subject to certain non-U.S. taxes at a rate of
10%. The fund provides for such non-U.S. taxes on investment income, net
realized gain, and net unrealized gain.
3. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of December 31, 1995, net unrealized appreciation on investments,
excluding forward currency contracts, for federal income tax purposes
aggregated $719,831,000, net of accumulated deferred taxes totaling $2,162,000
on net unrealized appreciation of Chilean and Indian securities, of which
$1,295,909,000 related to appreciated securities and $576,078,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the six months ended December 31, 1995.
The cost of portfolio securities, excluding forward currency contracts, for
federal income tax purposes was $5,135,657,000 at December 31, 1995.
4. The fee of $19,736,000 for management services was paid pursuant to an
agreement with Capital International, Inc. (CII), with which certain officers
and Directors of the fund are affiliated. The Investment Advisory and Service
Agreement provides for monthly fees, accrued weekly, based on an annual rate of
0.90% on the first $400 million of the fund's net assets; 0.80% of such assets
in excess of $400 million but not exceeding $1 billion; 0.70% of such assets in
excess of $1 billion but not exceeding $2 billion; 0.65% of such assets in
excess of $2 billion but not exceeding $4 billion; 0.625% of such assets in
excess of $4 billion but not exceeding $6 billion; 0.60% of such assets in
excess of $6 billion but not exceeding $8 billion; 0.58% of such assets in
excess of $8 billion but not exceeding $11 billion; and 0.56% of such assets in
excess of $11 billion. CII is owned by Capital Group International, Inc.,
which is a wholly owned subsidiary of The Capital Group Companies, Inc.
5. As of December 31, 1995, accumulated excess distributions of net realized
gains was $6,232,000 and additional paid-in capital was $5,043,938,000. The
fund made purchases and sales of investment securities, excluding short-term
securities, of $1,402,969,000 and $481,745,000, respectively, during the six
months ended December 31, 1995.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the six months ended December 31, 1995, such non-U.S. taxes were $4,279,000.
Net realized currency losses on dividends, interest, withholding taxes
reclaimable, and sales of non-U.S. bonds were $691,000 for the six months ended
December 31, 1995.
The fund may enter into forward currency contracts, which represent an
agreement to exchange currencies of different countries at a specified future
date at a specified rate. The fund purchased forward currency contracts to
hedge the foreign exchange exposure in the Polish Government Treasury Bills
held by the fund. The Polish Government has pegged the Zloty to a basket of
currencies, and the forward currency contracts protect the fund against
movements in these currencies against the U.S. dollar. The fund's use of
forward currency contracts involves market risk in excess of the amount
recognized in the statement of assets and liabilities. The contracts are
recorded in the statement of assets and liabilities at their net unrealized
value. The face or contract amount in U.S. dollars reflects the total exposure
the fund has in that particular contract. Losses may arise upon entering these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from the possible movements in non-U.S. exchange rates and
securities values underlying these instruments. At December 31, 1995, the fund
had outstanding forward currency contracts to sell non-U.S. currencies as
follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NON-U.S. CURRENCY SALE CONTRACTS
Contract Amount U.S. Valuation at 12/31/95
------------------------ --------------------------
Non-U.S. U.S. Amount Unrealized
Appreciation
- -------------------------------------------------------------------------------------------
French Francs
expiring 2/9/96 FF 1,288,000 $ 263,000 $ 263,000 $ 0
German Deutschemarks
expiring 2/9/96 DM 2,642,000 1,873,000 1,843,000 30,000
Pound Sterling
expiring 2/9/96 L 256,000 403,000 397,000 6,000
Swiss Francs
expiring 2/9/96 SFR 318,000 281,000 276,000 5,000
-------------
$41,000
=============
</TABLE>
******************
PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Six months Year ended June 30
ended ------------------------------------------------
12/31/95/1/
1995 1994 1993 1992 1991
---------- ------------------------------------------------
Net Asset Value, Beginning of
Period $52.36 $58.75 $44.95 $38.64 $32.73 $32.81
-------- -------- -------- ------- ------- -------
Income from Investment Operations:
Net investment income .......... .43 .87 .53 .62 .55 .83
Net realized and unrealized
gains (losses) on investments
before non-U.S. taxes ......... (.87) (.79) 15.29 7.33 8.87 3.89
Non-U.S. taxes ................. - (.03) (.39) .06 (.28 ) (.38 )
-------- -------- -------- ------- ------- -------
Total income from
investment operations......... (.44) .05 15.43 8.01 9.14 4.34
-------- -------- -------- ------- ------- -------
Less Distributions:
Dividends from net
investment income.............. (.37) (.63) (.49) (.56) (.56) (.92)
Distributions from net
realized gain.................. (1.27) (5.81) (1.14) (1.14) (2.67) (3.50)
-------- -------- -------- ------- ------- -------
Total distributions ........... (1.64) (6.44) (1.63) (1.70) (3.23) (4.42)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of Period ... $50.28 $52.36 $58.75 $44.95 $38.64 $32.73
======= ======= ======= ======= ======== =======
Total Return .................... (.75)%/2/ (1.22)% 34.33% 21.55% 29.73% 18.08%
Ratios/Supplemental Data:
Net assets, end of period
(in millions).................... $5,771 $5,572 $4,170 $2,574 $1,561 $703
Ratio of expenses to average
net assets....................... .44%/2/ .91% 1.00% 1.01% 1.11% 1.18%
Ratio of expenses and non-U.S.
taxes to average net assets ..... .44%/2/ .94% 1.04% 1.07% 1.18% 1.31%
Ratio of net income to average
net assets ...................... .84%/2/ 1.70% .91% 1.82% 1.84% 2.78%
Portfolio turnover rate .......... 9.31%/2/ 23.75% 18.13% 11.97% 16.03% 26.38%
</TABLE>
/1/ Unaudited
/2/ Based on operations for the period shown and accordingly,
not representative of a full year's operations.
BOARD OF DIRECTORS
Issa Al-Sowaidi, Abu Dhabi,
United Arab Emirates Director,
Abu Dhabi Investment Authority
Robert B. Egelston, Los Angeles, California
Vice Chairman of the Board of the fund
Former Chairman of the Board,
The Capital Group Companies, Inc.
Nancy Englander, Los Angeles, California
President of the fund
Senior Vice President, Capital International, Inc.
David I. Fisher, Los Angeles, California
Vice Chairman of the Board of the fund
Chairman of the Board,
The Capital Group Companies, Inc.
Beverly L. Hamilton, Los Angeles, California
President,
ARCO Investment Management Company
Marinus W. Keijzer, Zeist, Netherlands
Chief Economist & Strategist, Pensioenfonds PGGM
Hugh G. Lynch, New York, New York
Managing Director, International Investments,
General Motors Investment Management Corporation
Helmut Mader, Frankfurt, Germany
Senior Vice President, Deutsche Bank AG
Teresa E. Martini, Berkeley Heights, New Jersey
Vice President, Public Equities,
AT&T Investment Management Corporation
John G. McDonald, Stanford, California
The IBJ Professor of Finance,
Graduate School of Business, Stanford University
James K. Peterson, Stamford, Connecticut
Director of Investment Management,
IBM Corporation
William Robinson, Gouvieux, France
Director, Aga Khan Fund for Economic Development
Patricia A. Small, Oakland, California
The Associate Treasurer,
The Regents of the University of California
Walter P. Stern, New York, New York
Chairman of the Board of the fund
Chairman of the Board,
Capital Group International, Inc.
OTHER OFFICERS
Roberta A. Conroy, Los Angeles, California
Vice President and Secretary of the fund
Assistant General Counsel,
The Capital Group Companies, Inc.
Hartmut Giesecke, Singapore
Vice President of the fund
Chairman of the Board and Director,
Capital International K.K., and
Senior Vice President and Director,
Capital International, Inc.
Thomas W. Trimborn, London, England
Vice President of the fund
Vice President, Capital International, Inc.
Shaw B. Wagener, Los Angeles, California
Vice President of the fund
Executive Vice President and Director,
Capital International, Inc.
Steven N. Kearsley, Brea, California
Treasurer of the fund
Vice President and Treasurer,
Capital Research and Management Company
Michael A. Felix, Brea, California
Assistant Treasurer of the fund
Vice President, Capital International, Inc.
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER,
CAPITAL INTERNATIONAL, INC.
11100 Santa Monica Boulevard, 15th Floor
Los Angeles, California 90025-3302
135 South State College Boulevard
Brea, California 92621-5804
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W., Suite 500
Washington, D.C. 20005
This report is for the information of shareholders of Emerging Markets Growth
Fund, but it may also be used as sales literature when preceded or accompanied
by the current prospectus, which gives details about charges, expenses,
investment objectives and operating policies of the fund.
Printed in USA JA/WS/2895
(c) 1996 Emerging Markets Growth Fund, Inc.
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