|
|
|
|
|
|
|
|
|
|
Previous: FEDERATED DEPARTMENT STORES INC /DE/, S-3/A, 1997-09-11 |
Next: METAL MANAGEMENT INC, 8-K, 1997-09-11 |
EMERGING MARKETS GROWTH FUND, INC.
Annual Report
For the Year Ended June 30, 1997
Seeks Long-term Growth of Capital by Investing in Companies
Operating in Developing Countries Around the World
FELLOW SHAREHOLDERS:
Fiscal 1997 was a very rewarding period for investors in Emerging Markets
Growth Fund. During the 12 months ended June 30, the value of EMGF's shares
rose 29.2%, assuming reinvestment of two income dividends totaling $1.79 and a
capital gain distribution of $1.02 that were paid during the year.
These results bring the fund's total increase since operations began in May
1986 to 1,415.6% on a reinvested basis, an average annual compound return of
27.8%.
Virtually all of the gain this past fiscal year was achieved in the second
half, when equity markets strengthened throughout much of EMGF's investment
universe. During the July-December period, the fund's total return showed a
miniscule increase of 0.01%.
EMGF's fiscal 1997 gain outdistanced, by a huge margin, the principal benchmark
by which the fund's results are typically measured. The unmanaged Morgan
Stanley Capital International Emerging Markets Free (EMF) Index, which tracks
stock prices in 26 developing countries, rose 12.8% for the 12 months on a
reinvested basis. Our 29.2% increase for the year also outpaced the total
return of 22.8% recorded by the Morgan Stanley Capital World Index (MSCWI), an
unmanaged measure of stock prices in 22 industrialized countries, including the
United States.
[Sidebar]
12-Month Results
With Dividends Reinvested (7/1/96 - 6/30/97)
EMGF...................................... +29.2%
MSCI Emerging Markets Free Index.......... +12.8
[End Sidebar]
THREE REASONS
Emerging Markets Growth Fund did exceptionally well, on a comparative basis as
well as in absolute terms, mainly for three reasons:
1) Relative to the EMF Index, the fund was overweighted in Latin American
utility and telecommunications issues that went up dramatically, including the
shares of affiliated companies not included in the index. On June 30, these
investments accounted for five of our ten largest holdings (page 8) and
represented nearly 14% of net assets. During the 12 months, their average price
increase was 75.9%. The fund's largest single investment, Telebras, a holding
company that controls Brazilian telecommunications firms, rose 117.9%.
2) In the Russian Federation, which is not part of the EMF Index, we have
expanded our research efforts and gradually built up our invested position; on
June 30 it was equal to 6.7% of net assets. A number of our holdings there rose
in triple digits during the fiscal year, including the portfolio's three best
performing stocks -- all regional phone companies: Moscow City Telephone
(+540.0%), Nizhny-Nov Svyaz (+421.7%) and St. Petersburg Telephone (+262.1%).
3) In Thailand, one of the few emerging markets that did not fare well, the
fund was underrepresented relative to the EMF Index. This underweighting, of
course, had a positive impact on our results. Meanwhile, we benefited from an
overweighted position in Taiwanese electronic stocks, most of which moved
sharply higher. Our largest investment in that industry (and the fund's
second-largest holding) is Taiwan Semiconductor Manufacturing Company (TSMC),
the world's biggest integrated circuit foundry; for the 12 months, TSMC rose
218.9%.
DIVERSIFICATION AND PROGRESS
At the end of June, Emerging Markets Growth Fund's highly diversified portfolio
contained well over 400 securities. While most of our larger holdings currently
are in infrastructure-related businesses such as phone companies and utilities,
many of the additions to our portfolio recently have been comparatively small,
rapidly growing firms in industries generally unrelated to a country's
infrastructure. We expect this trend to continue.
At the end of June, 37% of the fund's assets were in the Asia-Pacific region;
just over 37% were in Latin America; and approximately 20% were in markets
elsewhere, including Eastern Europe. The table on page 4 shows how these
percentages compare with previous years. It also shows that the fund's holdings
of cash and equivalents equaled about 6% of net assets on June 30, down
somewhat from the beginning of fiscal 1997.
The investment climate in which the fund operates was highly favorable in the
second half of the fiscal year. In most developing countries, economic growth
continued at a brisk pace; interest rates remained relatively low (a very
important factor for nations with substantial capital needs); and there was
further acceptance of foreign investment as well as continuing support for the
concept of free markets.
We expect the general pattern of progress and expansion in developing countries
to continue, although certainly not without interruptions. At times like this,
it is prudent to remind ourselves that the markets in which we invest are still
maturing. By and large they are vulnerable to political and other shocks, and
many of them tend to fluctuate widely. As we have seen recently, fluctuations
on the downside as well as the upside can take place in a rather abrupt
fashion. Accordingly, we encourage all of our investors to take a long-term
view of their holdings.
Percent Change in Key Markets/1/
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Twelve months ended 6/30/97 Six months ended 6/30/97
------------------------------ --------------------------
Expressed in Expressed in Expressed in Expressed in
U.S. Dollars Local Currency U.S. Dollars Local Currency
------------- -------------- ------------ --------------
Argentina 30.5% 30.5% 24.5% 24.6%
Brazil 71.0 83.4 54.1 59.7
Chile 12.6 14.2 32.5 29.9
China (Free)2 34.9 35.0 11.9 12.0
Colombia 46.3 48.9 35.6 47.0
Czech Republic -19.9 -5.7 -20.4 -5.3
Greece 46.6 67.2 44.0 60.2
Hungary 83.7 128.9 56.4 81.1
India 7.1 8.9 37.6 37.5
Indonesia (Free)2 15.6 20.8 6.0 9.1
Jordan 21.8 21.7 12.9 12.7
Malaysia (Free)2 -4.5 -3.4 -11.6 -11.7
Mexico (Free)2 34.1 40.1 30.7 31.5
Pakistan -12.9 0.6 22.1 23.1
Peru 28.4 37.7 40.4 42.3
Philippines(Free)2 -16.1 -15.6 -11.7 -11.4
Poland -3.9 16.1 -8.1 5.6
Portugal 46.6 64.4 33.9 51.6
South Africa 2.9 7.8 16.6 13.1
South Korea -19.2 -11.5 11.6 17.2
Sri Lanka 36.6 44.0 35.7 39.9
Taiwan 30.0 31.4 27.0 28.4
Thailand (Free)2 -57.8 -57.0 -33.7 -33.0
Turkey 51.5 173.7 51.1 105.6
Venezuela 112.5 120.2 43.8 46.9
Emerging Markets
Growth Fund 29.17 29.16
</TABLE>
1With gross dividends reinvested. All indexes are compiled by Morgan Stanley
Capital International Perspective and are unmanaged.
2The fund is invested in the "free" Chinese, Indonesian, Malaysian, Mexican,
Philippine and Thai stock markets, which consist of securities that can be
purchased by investors other than resident nationals.
SHAREHOLDER VOTE
On June 27, shareholders voted in favor of a proposal to convert EMGF to an
"open-end interval fund." Without altering our policy of measured growth or the
profile of the fund's shareholders, this change would provide investors with an
opportunity to redeem shares each month. We do not anticipate any significant
shift in the volume of redemption activity. Because the fund would have 30
days to raise cash to meet redemption requests, we believe that the negative
impact on the investment process should be limited. This change still must be
approved by the Securities and Exchange Commission.
Shareholders also voted to increase the number of outstanding shares from 200
million to 400 million. This increase in authorized but unissued shares is
intended to meet our requirements for new shares over the coming years.
We expect the fund's share base will continue expanding as it has for some time
- -- slowly, and under the careful supervision of an independent Board of
Directors that has limited the growth of new sales each year.
On pages 5 and 6, you will find a brief overview of the investment landscape in
the markets that are the fund's largest areas of concentration. On page 7 there
is a description of EMGF's adviser and its research-driven, value-oriented
investment philosophy.
We look forward to reporting to you again in another six months.
Sincerely,
Walter P. Stern
Chairman
Nancy Englander
President
August 11, 1997
Here are the total returns and average annual compound returns with all
distributions reinvested for periods ended June 30, 1997 -- 10 years: +871.85%,
or +25.53% a year; 5 years: +140.61%, or +19.20% a year; 12 months: +29.17%.
The figures in this report reflect past results and are not predictive of
future 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. All investments are subject to certain risks. Those which
include common stocks are affected by fluctuating stock prices. Investments
outside the U.S. (especially those in developing countries) are subject to
additional risks, including currency fluctuations, political and social
instability, differing securities regulations and accounting standards, limited
public information, possible changes in taxation, and periods of illiquidity.
Accordingly, investors should maintain a long-term perspective.
WHERE THE FUND'S ASSETS ARE INVESTED
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Percent of Net Assets
------------------------------------------------- Market Value
MSCI EMF of Holdings
Index /1/ 6/30/97
6/30/95 6/30/96 12/31/96 6/30/97 6/30/97 (in thousands)
------------------------------------------------------------------------------------
ASIA/PACIFIC
China 1.8% 1.2% 1.4% 1.0% .6% $131,582
Hong Kong 1.0 .9 .6 .3 -- 46,953
India 5.7 7.7 6.6 7.5 6.2 1,016,266
Indonesia 4.2 4.5 4.1 3.5 5.7 477,845
Malaysia 4.3 4.4 4.5 3.4 12.6 459,591
Pakistan 1.1 .9 .5 .4 .6 51,043
Philippines 7.6 6.4 6.4 3.8 2.5 519,651
South Korea 7.0 5.8 4.7 6.4 4.0/2/ 867,041
Sri Lanka .2 .1 .1 .1 .1 9,282
Taiwan .8 2.8 3.5 9.5 9.6/2/ 1,284,700
Thailand 5.5 3.7 2.1 .9 3.2 125,724
Vietnam .1 .1 .1 .1 -- 6,206
---- ---- ---- ---- ---- ---------
39.3 38.5 34.6 36.9 45.1 4,995,884
---- ---- ---- ---- ---- ---------
LATIN AMERICA
Argentina 8.3 5.9 5.9 6.6 3.6 899,188
Brazil 13.7 14.8 15.2 16.9 15.8 2,290,903
Chile 2.2 1.8 1.8 2.2 4.0 305,960
Colombia .5 .3 .3 .2 .8 27,959
Ecuador .1 .2 .4 .2 -- 31,875
Mexico 7.6 10.3 9.9 8.2 8.5 1,120,423
Panama .4 .8 .3 .2 -- 26,966
Peru 1.8 2.3 3.2 2.2 1.1 306,301
Venezuela .1 .5 .5 .5 1.3 61,888
---- ---- ---- ---- ---- ---------
34.7 36.9 37.5 37.2 35.1 5,071,463
---- ---- ---- ---- ---- ---------
EASTERN EUROPE
Bulgaria -- -- .4 .3 -- 46,905
Czech Republic .1 .3 .3 .2 .8 27,299
Hungary -- .4 .4 .4 .5 52,678
Poland .1 .5 .5 .5 .4 64,350
Republic of Croatia -- .3 .6 .4 -- 61,117
Russia and former republics
of the Soviet Union/3/ .7 3.7 4.3 6.7 -- 911,363
Slovakia -- -- -- .1 -- 6,971
---- ---- ---- ---- ---- ---------
.9 5.2 6.5 8.6 1.7 1,170,683
---- ---- ---- ---- ---- ---------
OTHER MARKETS
Egypt -- -- -- .1 -- 10,430
Ghana .4 .4 .4 .2 -- 34,246
Greece 1.0 1.1 1.0 .8 1.4 107,285
Mauritius -- .1 .1 .1 -- 6,205
Morocco .1 .2 .2 .2 -- 24,190
Portugal .3 .5 .6 .7 2.2 100,495
South Africa .8 3.5 4.1 3.9 10.6 527,246
Turkey 2.2 1.6 2.0 2.3 1.7 305,182
United States .1 -- -- -- -- --
---- ---- ---- ---- ---- ---------
4.9 7.4 8.4 8.3 15.9 1,115,279
---- ---- ---- ---- ---- ---------
Multi-National 1.2 1.8 2.3 2.2 303,637
---- ---- ---- ---- ---------
Other/4/ 1.7 .8 .5 .6 82,443
---- ---- ---- ---- ---------
Cash & Equivalents 17.3 9.4 10.2 6.2 844,255
---- ---- ---- ---- ---------
TOTAL 100.0% 100.0% 100.0% 100.0% $13,583,644
====== ====== ====== ====== ===========
</TABLE>
1Morgan Stanley Capital International Emerging Markets Free Index also includes
Israel (2.1%) and Jordan (0.1%). A dash indicates that the market is not
included in the index. Source: Morgan Stanley Capital International
Perspective.
2In September 1996, Taiwan was added to the EMF Index; its weighting reflects
50% of that country's market capitalization. South Korea's weighting was
increased to reflect 50% of that country's market capitalization instead of
20%.
3Includes investments in companies incorporated outside the region which have
significant operations in the region.
4Includes investments in markets where the holdings represent a percentage of
net assets of less than .05%. Also includes stocks in initial period of
acquisition.
Here is a brief look at the investment landscape in the markets representing
Emerging Markets Growth Fund's five largest areas of concentration. Our
holdings in these markets account for nearly half of net assets. (Percentage
changes for markets and stock prices are in U.S. dollars.)
BRAZIL (16.9% OF NET ASSETS)
The Brazilian market recorded a gain of 71.0% in fiscal 1997. Three companies
make up approximately one-half of its capitalization: Telebras, Telesp (a
subsidiary of Telebras serving the state of Sao Paulo) and Eletrobras (a
holding company in charge of Brazil's electrical industry). All three rank
among the fund's largest investments, and all three made solid contributions to
our results in fiscal 1997.
To a considerable extent, Brazilian stock prices have been driven upward by
higher corporate earnings and good economic fundamentals. Inflation has
subsided, and the value of the real remains stable. In early June the Brazilian
Congress passed a constitutional amendment permitting President Fernando
Cardoso to seek a second term. This political victory did not come without
cost, however. A number of important civil service and social-security reform
proposals that could help address the nation's troublesome budget deficit were
sidetracked.
Cardoso's challenge in the months ahead will be to maintain an effective
government coalition while continuing to move toward a more open,
market-oriented economy.
TAIWAN (9.5% OF NET ASSETS)
Our extensive holdings in electronics stocks are the principal reason Taiwan
currently ranks as our second-largest area of concentration. That industry is
benefiting importantly as hardware production shifts from other countries into
Taiwan, where manufacturing processes are being upgraded and made more
efficient. This upgrading is creating higher profit margins in an area of the
electronics business that has long been considered low-profit. Along with
Taiwan Semiconductor, our investments in Taiwanese electronics stocks include
Acer Computer, Inventec, Asustek and Silconware. All of these stocks recorded
solid gains in fiscal '97.
For some time, concern about Taiwan's political situation and its future caused
many investors to overlook the achievements and progress taking place in the
country's semiconductor and computer industries. However, that situation began
changing about a year ago. The strength shown by electronics stocks was largely
responsible for the 30.0% total return recorded by the Taiwanese market during
the fund's fiscal year.
MEXICO (8.2% OF NET ASSETS)
A single company, Telefonos de Mexico, accounts for about one-fourth of the
Mexican market's capitalization. This firm is the sole provider of fixed local
telephone service and the dominant provider of long distance service in Mexico.
Telmex has been among EMGF's most significant investments for some time and
currently ranks as our third-largest holding. In fiscal 1997, it generated
strong cash flow and higher earnings. The stock rose 42.4%, somewhat more than
the 34.1% increase generated during this period by the overall Mexican market.
Even after recording this gain, however, Telmex is still well below its
all-time high.
Recently, the value of the Mexican peso has been pushed upward by revenues from
oil exports. This is a source of some concern, as is the country's uncertain
political situation. Mexico is shifting from a government dominated by a single
party to one with more plurality. We are encouraged by the fact that the
economy appears to be back on track, and by the prospects for President Ernesto
Zedillo's three-year economic plan, which calls for further reforms, including
privatization of the country's pension system.
INDIA (7.5% OF NET ASSETS)
Although buffeted by four changes in the country's government in less than 12
months, India's stock market managed to gain 7.1% in fiscal 1997. The latest
coalition has retained finance minister P. Chidambaram, whose budget proposals
and commitment to free enterprise could have a dramatic impact on the nation's
future. Chidambaram favors a personal and corporate income tax cut, the first
since India gained independence in 1948. He also seeks to raise the ceiling on
aggregate foreign ownership in Indian companies from 24% to 30%.
Not surprisingly, India's economy has slowed in the wake of the country's
political upheavals. In the period ahead, the economy should benefit from a
shift in the central bank's credit policy that will allow member banks to
reduce the interest rate they charge their best customers to 14%, the lowest in
a decade.
Although we monitor India's macroeconomic and political situation closely, the
fund's Indian investments have been made with the long termin mind and are
based on intensive research into company managements and strategies as well as
industry fundamentals. The largest of these holdings is Mahanagar Telephone
Nigam (MTNL), which provides telecommunications services in Bombay and New
Delhi. Currently the fund's ninth-largest holding, MTNL rose 17.7% in price
during the past fiscal year.
RUSSIAN FEDERATION (6.7% OF NET ASSETS)
The equity market in the Russian Federation was among the strongest of all
emerging markets during the past fiscal year. As we indicated in our
shareholder letter, gains in triple digits were not uncommon among individual
shares, with most of the increases coming during the January-June period.
Russian stock prices have been driven upward by several factors: attractive
valuations, a decline in inflation, an increase in government reserves, a more
stable ruble and the pro-business orientation of key government officials
appointed by President Yeltsin after his return from heart surgery last
November. One measure of the economic improvement that has been taking place is
a substantial drop in yields on treasury bills.
The Russian Federation's equity market is volatile and still in an early stage
of development. Meanwhile, the economic and other challenges facing Yeltsin and
his team are formidable. They include widespread non-payment of taxes and
wages, and the need for industrial restructuring as well as for greater
openness and accountability throughout the government. EMGF's Russian
Federation investments -- including the three companies mentioned in our
shareholder letter -- all represent enterprises with assets trading at large
discounts to international standards. These discounts are based on the
perceived risk that is associated with the fact that the firms are Russian.
ABOUT THE FUND AND ITS ADVISER:
Emerging Markets Growth Fund was organized in 1986 by the International Finance
Corporation (IFC), an affiliate of the World Bank, as a vehicle for investing
in the securities of companies domiciled in developing countries. The premise
behind the formation of EMGF was that rapid growth in those countries can
create some very attractive investment opportunities. It also was felt that the
availability of equity capital would stimulate the development of capital
markets and encourage countries to liberalize their investment regulations.
An affiliate of Capital International, Inc., the fund's current investment
adviser, was selected at the outset by the IFC to manage Emerging Markets
Growth Fund from among a number of global investment management firms. The fund
started with $50 million in assets, 13 institutional shareholders and a small
portfolio of stocks representing four markets. Today it has more than $13
billion in assets, over 600 institutional and individual investors, and a
portfolio of more than 400 securities representing companies based in over 30
nations. As Emerging Markets Growth Fund has grown, its adviser has steadily
expanded its research activities in developing countries and devoted increased
resources to the task of managing emerging markets investments.
Capital International, Inc. is one of The Capital Group Companies. These
companies form one of the world's most experienced investment advisory
organizations, with roots dating back to 1931. The organization has been
involved in international investing since the 1950s, and has become one of the
world's largest managers of emerging markets assets.
The investment management affiliates of The Capital Group Companies employ a
value-oriented and research-driven approach. They maintain a global investment
intelligence network which employs more than 190 investment professionals based
on three continents. They include analysts and portfolio counselors, born in
more than 30 countries, who speak a variety of languages. These professionals
travel millions of miles each year, keeping a close watch on industry trends
and government actions and scrutinizing thousands of companies, including
hundreds of firms based in the less-developed countries. Currently, about 30 of
the organization's analysts cover emerging markets, compared with four when
EMGF began.
This extensive research effort combines intensive company and industry analysis
with a political and macroeconomic overview, and we believe it has given our
family of companies -- and the funds they manage, including Emerging Markets
Growth Fund -- an important competitive edge.
INVESTMENT PORTFOLIO, JUNE 30, 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Equity-Type Securities
--------------------------------
Common Preferred Convertible Percent of
INDUSTRY DIVERSIFICATION Stocks Stocks Bonds Bonds Net Assets
- ------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS 12.35 6.11 0.32 18.78
UTILITIES: ELECTRIC & GAS 8.01 3.64 0.02 11.67
ELECTRONIC COMPONENTS 7.26 7.26
BANKING 5.76 0.83 0.14 6.73
ENERGY SOURCES 5.5 0.88 0.15 6.53
BEVERAGES & TOBACCO 4.69 0.93 5.62
BUILDING MATERIALS & COMPONENTS 2.34 0.2 0.02 2.56
OTHER INDUSTRIES 28.18 1.58 0.75 4.13 34.64
74.09 14.17 1.08 4.45 93.79
Short-Term Securities 5.79
Excess of cash and receivables over liabilities 0.42
Net Assets 100.00
</TABLE>
TEN LARGEST EQUITY HOLDINGS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERCENT OF GAIN/LOSS
FOR THE YEAR ENDED
PERCENT OF 6/30/97 /1/
NET ASSETS (IN U.S. DOLLARS)
- -------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras (Telebras) 4.71% +117.94%
Taiwan Semiconductor Manufacturing Co. Ltd. 4.24 +218.94
Telefonos de Mexico 3.18 +42.37
Centrais Eletricas Brasileiras (Eletrobras) 2.90 +106.39
Unified Energy System of Russia 1.96 +132.05 /2/
Samsung Electronics 1.92 +26.44
Companhia Energetica de Minas Gerais-CEMIG 1.60 +96.19
LUKoil Holding 1.54 +84.12
Mahanagar Telephone Nigam 1.51 +17.74
Telefonica Argentina 1.49 +16.83
</TABLE>
1. 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.
2 This security was not held durign the entire peiod. The percentage change
reflects the increase from January 31 through June 30, 1997.
EMERGING MARKETS GROWTH FUND, INC.
INVESTMENT PORTFOLIO - JUNE 30, 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Number of
EQUITY - TYPE SECURITIES Shares Market Percent
(common and preferred stocks or Value of Net
and convertible debentures) Principal (000) Assets
Amount
Argentina - 5.26%
Banco Bansud SA, Class B (1) 254,336 $3,968 .03%
Banco de Galicia y Buenos Aires SA, Class B
(American Depositary Receipts) 2,588,318 68,267
Banco de Galicia y Buenos Aires SA,
7.00% convertible bond August 1, 2002 $12,571,000 15,840 .62
Banco Frances del Rio de la Plata SA 740,600 8,022
Banco Frances del Rio de la Plata SA
(American Depositary Receipts) 2,342,141 76,120 .62
BI SA (acquired 10/21/93, cost: $6,130,000) (2) 6,130,000 6,130 .05
Compania Naviera Perez Companc SACFIMFA, Class B 11,291,086 90,681
Compania Naviera Perez Companc SACFIMFA, Class B
(American Depositary Receipts) 689,668 11,078 .75
Disco SA (American Depositary Receipts) (1) 753,000 29,838 .22
Hidroneuquen SA (acquired 11/11/93, cost: $29,086,000) (1)(2) 29,086,231 29,086 .21
IRSA Inversiones y Representaciones SA 26,900 118
IRSA Inversiones y Representaciones SA
(Global Depositary Receipts) 180,849 7,912 .06
Nortel Inversora SA, Class B, preferred
(American Depositary Receipts)
(acquired 11/24/92, cost:$6,180,000) (2) 893,187 11,361
Nortel Inversora SA, Class B, preferred
(American Depositary Receipts)
(acquired 2/27/92, cost: $17,705,000) (2) 1,287,640 34,927 .33
Quilmes Industrial, non-voting, preferred
(American Depositary Shares) 2,150,400 24,998 .18
Sociedad Comercial del Plata SA (1) 5,645,880 18,408 .14
Telecom Argentina STET-France Telecom SA, Class B 2,800,000 14,618
Telecom Argentina STET-France Telecom SA, Class B
(American Depositary Shares) 362,700 19,042 .25
Telefonica de Argentina SA, Class B 4,910,000 16,942
Telefonica de Argentina SA, Class B
(American Depositary Shares) 5,358,800 185,548 1.49
YPF SA, Class D (American Depositary Receipts) 1,366,800 42,029 .31
---------- ----------
714,933 5.26
---------- ----------
Brazil - 16.30%
Aracruz Celulose SA, Class B, preferred nominative
(American Depositary Receipts) 640,950 13,059 .10
Banco Bradesco SA, preferred nominative 1,980,622,334 19,963 .15
Banco Itau SA, preferred nominative 123,088,700 68,948 .51
Banco Nacional SA, preferred nominative (1) 215,940,814 -
Banco Nacional SA, ordinary nominative (1) 2,500,000 - .00
Banco Real de Investimento SA, preferred nominative 4,650,000 13,088 .10
Banco Real SA preferred nominative 7,379,450 6,272 .05
Black Swan Gold Mines Ltd., special warrants, expire 2/11/98 (1) 2,300,000 2,032 .01
Brasmotor SA, preferred nominative 141,951,974 31,648 .23
Centrais Eletricas Brasileiras SA- ELETROBRAS, preferred
nominative (American Depositary Receipts) 7,046,788 207,880
Centrais Eletricas Brasileiras SA - ELETROBRAS, ordinary nominative 16,480,000 9,216
Centrais Eletricas Brasileiras SA - ELETROBRAS, ordinary nominative
(American Depositary Receipts) 6,388,771 177,288 2.90
Centrais Eletricas de Santa Catarina SA - CELESC, Class B,
preferred nominative 983,000 1,461 .01
CESP-Companhia Energetica de Sao Paulo, preferred
nominative (American Depositary Receipts) (1) 1,381,049 27,621
CESP-Companhia Energetica de Sao Paulo, preferred
nominative (American Depositary Receipts)
(acquired 8/30/94, cost: $2,853,000) (1)(2) 167,104 3,342
CESP-Companhia Energetica de Sao Paulo, ordinary
nominative (1) 130,164,954 8,476 .29
COFAP-Companhia Fabricadora de Pecas,
preferred nominative (1) 285,116 3,086 .02
Companhia Cervejaria Brahma, preferred nominative 111,423,437 84,874
Companhia Cervejaria Brahma, ordinary nominative 224,483 171
Companhia Cervejaria Brahma, preferred nominative
(American Depositary Receipts) (1) 1,142,500 17,495 .76
Companhia Cimento Portland Itau, preferred nominative 77,577,100 26,664 .20
Companhia de Tecidos Norte de Minas-COTEMINAS,
preferred nominative 70,123,588 27,359 .20
Companhia Energetica de Minas Gerais-CEMIG,
prefrred nominative 385,372,000 19,868
Companhia Energetica de Minas Gerais-CEMIG,
preferred nominative (American Depositary Receipts) 3,473,349 178,878
Companhia Energetica de Minas Gerais-CEMIG,
preferred nominative (American Depositary Receipts)
(acquired 9/22/94, cost: $9,501,000) (2) 373,906 19,256 1.60
Companhia Siderurgica Belgo-Mineira, preferred nominative 8,181,892 585 -
Companhia Vale do Rio Doce, preferred nominative
(American Depositary Receipts) 911,734 20,514 .15
Consorcio Real Brasileiro de Administracao SA, Class F,
preferred nominative 1,405,000 3,002 .02
Copel, Class B, preferred nominative 1,472,207,914 27,352
Copel, ordinary nominative (1) 1,370,764,600 23,557 .37
Dixie Toga SA, preferred nominative 1,872,000 1,009 .01
Electrolux Brasileiras, preferred nominative
(American Depositary Receipts) 410,000 3,229 .02
ELETROPAULO-Eletricidade de Sao Paulo SA,
Class B, preferred nominative (1) 31,101,000 9,100 .07
Encorpar, preferred nominative (1) 61,861,588 764 .01
GP Capital Partners, LP
(acquired 1/28/94, cost: $26,017,000) (1)(2)(3) 27,000 34,108 .25
LIGHT- Servicos de Eletricidade SA, ordinary nominative 58,393,200 29,061 .21
Lojas Americanas SA, preferred nominative (1) 148,073,055 2,008
Lojas Americanas SA, ordinary nominative (1) 48,594,800 691 .02
Lojas Arapua, preferred nominative
(Global Depositary Receipts) 104,000 1,820 .01
Mesbla SA, preferred nominative (1) 111,674,640 -
Metal Leve SAIC, preferred nominative (1) 20,260,625 200 .00
Multicanal Participacoes SA, preferred nominative
(American Depositary Shares) (1) 1,430,000 19,484 .14
OSA SA-Organizacao, Sistemas e Aplicacoes,
preferred nominative (1) 90,000,000 418 -
Petroleo Brasileiro SA-PETROBRAS, preferred nominative 428,960,000 119,149 .88
SA White Martins, ordinary nominative 7,803,844 22,835 .17
Sadia Concordia SAIC, preferred nominative 2,010,000 2,091 .02
Souza Cruz SA, ordinary nominative 2,273,900 23,975 .18
Telecomunicacoes Brasileiras SA (Telebras),
preferred nominative 59,500,000 9,026
Telecomunicacoes Brasileiras SA (Telebras), preferred
nominative (American Depositary Receipts) 4,144,846 628,980
Telecomunicacoes Brasileiras SA (Telebras),
preferred nominative,blocked (1) 552,090 46
Telecomunicacoes Brasileiras SA (Telebras),
ordinary nominative 11,700,000 1,587 4.71
Telecomunicacoes de Sao Paulo SA-Telesp,
preferred nominative 443,294,423 144,745
Telecomunicacoes de Sao Paulo SA-Telesp,
ordinary nominative (1) 140,648,944 41,483 1.37
Unibanco - Uniao de Bancos Brasileiros SA, unit
(Global Depositary Shares) (1) 1,559,900 57,911 .43
Usinas Siderurgicas de Minas Gerais SA, preferred nominative
(American Depositary Receipts) (acquired 9/1/93;
cost: $9,774,000) (2) 1,550,305 17,053 .13
---------- ----------
2,213,728 16.30
---------- ----------
Chile - 2.25%
Chilgener SA (American Depositary Receipts) 1,160,357 32,490
Chilgener SA, rights, expire July 7, 1997
(American Depositary Receipts) (1) 382,823 1,275 .25
Compania de Telefonos de Chile SA
(American Depositary Receipts)
(Formerly Compania de Telecomunicaciones de Chile) 3,376,375 111,420 .81
CTI Compania Tecno Industrial SA 23,470,005 691 .01
Empresa Nacional de Electricidad SA
(American Depositary Receipts) 1,931,309 43,575 .32
Enersis SA (American Depositary Receipts) 2,872,182 102,142 .75
Forestal Terranova SA 550,000 529 -
Invercap SA 1,100,000 846 .01
Sociedad Quimica y Minera de Chile SA, Class A 1,277,900 6,908
Sociedad Quimica y Minera de Chile SA, Class B
(American Depositary Receipts) (1) 92,000 6,084 .10
---------- ----------
305,960 2.25
---------- ----------
China - 0.97%
Beijing Datang Power Generation Co. Ltd., Class H (1) 7,238,000 3,340 .02
China Eastern Air Corp. Ltd., Class H (American Depositary Receipts)(1)175,700 4,568 .03
China North Industries Investment Ltd.
(acquired 9/30/94, cost: $5,727,000) (2) 5,500,000 3,328 .02
China Yuchai International Ltd. (1) 1,015,500 3,174 .02
Guang Dong Electric Power Development Co. Ltd., Class B 2,454,960 2,012 .01
Harbin Power Equipment Co. Ltd., Class H 37,591,000 8,298
Harbin Power Equipment Co. Ltd., Class H
(American Depositary Receipts)
(acquired 11/30/94, cost: $3,336,000) (2) 99,000 2,185 .08
Huaneng Power International, Inc., Class N
(American Depositary Receipts) (1) 1,243,300 31,704 .24
Shanghai Diesel Engine Co. Ltd., Class B (1) 6,085,200 2,069 .02
Shanghai Petrochemical Co. Ltd., Class H 95,766,600 22,994
Shanghai Petrochemical Co. Ltd., Class H
(American Depositary Receipts) 7,000 172 .17
Tingyi (Cayman Islands) Holding Corp. (1) 67,261,500 16,757 .12
Yizheng Chem Fibre Class H 70,272,000 12,518 .10
Zhejiang Expressway Co. Ltd., Class H (1) 36,674,000 8,900 .07
Zhenhai Refining & Chemical Co. Ltd., Class H 25,710,000 9,293
Zhenhai Refining & Chemical Co. Ltd., Class H
3.0% converible bonds December 19, 2003 250,000 270 .07
---------- ----------
131,582 .97
---------- ----------
Colombia - 0.19%
Banco de Colombia SA 23,997,400 8,806 .07
Bavaria 235,146 1,689 .01
Compania de Cementos Argos, SA 1,906,186 15,302 .11
(Previously listed as Cementos Argos)
Comunicacion Celular SA, Class B, warrants, expire
November 15, 2003 (acquired 12/14/95; cost $22,000) (1)(2) 3,000 17 -
---------- ----------
25,814 .19
---------- ----------
Czech Republic - 0.20% ---------- ----------
SPT Telecom, a.s. (1) 259,974 27,299 .20
---------- ----------
Ecuador - 0.11%
La Cemento Nacional CA (Global Depositary Receipts) 76,330 15,419 .11
---------- ----------
Egypt - 0.08%
Al-Ahram Beverages (Global Depositary Receipts) (1) 510,000 10,430 .08
Ghana - 0.25%
Ashanti Goldfields Co. Ltd. (1) 691,111 8,086
Ashanti Goldfields Co. Ltd. (Global Depositary Receipts) 1,131,500 13,224
Ashanti Goldfields Co. Ltd.,
5.50% exchangable note March 15, 2003 $15,970,000 12,936 .25
---------- ----------
34,246 .25
---------- ----------
Greece - 0.79%
Aluminum de Grece SAIC (4) 389,840 22,718 .17
Hellenic Bottling Co. SA (4) 1,717,645 63,550 .47
Katselis Sons SA, ordinary 45,000 286
Katselis Sons SA, ordinary, rights, expire 7/25/97 (1) 45,000 4 -
Michaniki SA, preferred 318,940 1,987
Michaniki SA, ordinary 238,050 1,804 .03
Titan Cement Co. SA, ordinary 343,044 16,936 .12
---------- ----------
107,285 .79
---------- ----------
Hong Kong - 0.34%
China-Hongkong Photo Products Holdings Ltd. 11,996,000 3,484 .03
New World Infrastructure Ltd. (1) 14,904,497 42,135 .30
Siu-Fung Ceramics Holdings Ltd. 7,869,409 434 -
Siu-Fung Ceramics Holdings Ltd., rights, expire
July 1, 1997 (1) 3,147,763 - -
Tian An China Investments Co. Ltd. 6,637,500 900 .01
---------- ----------
46,953 .34
---------- ----------
Hungary - 0.39%
Gedeon Richter Ltd. 428,000 39,422 .29
Graboplast Textiles Muborgyarto Rt. 15,200 714 .01
MOL Magyar Olaj-es Gazipari Rt.
(Global Depositary Receipts) 570,100 12,542 .09
---------- ----------
52,678 .39
---------- ----------
India - 7.48%
Asian Paints (India) Ltd. 564,600 5,528 .04
Bajaj Auto Ltd. 2,379,500 61,418
Bajaj Auto Ltd.
(Global Depositary Receipts) 36,600 1,257 .47
Bharat Forge Corp. Ltd. 3,250 6 -
Bharat Petroleum Corp. Ltd. 5,985,200 75,338 .55
Bombay Dyeing and Manufacturing Co. Ltd.
(Global Depositary Receipts) 90,000 236 -
East India Hotels Ltd. 997,165 12,133 .09
(Formerly Essar Gujarat Ltd.) 1,049,600 543 -
Flex Industries Ltd. 393,800 445
Flex Industries Ltd., units (equivalent to 1 shares + 1/2 warrant) 157,520 178 -
Grasim Industries Ltd. 659,480 7,008
Grasim Industries Ltd.
(Global Depositary Receipts) 1,538,365 21,537 .21
Hindalco Industries Ltd. 2,670,425 72,830
Hindalco Industries Ltd. (Global Depositary Receipts) 1,102,280 38,966 .82
Hindustan Lever Ltd. 1,081,700 43,843 .32
Housing Development Finance Corp. Ltd. 272,800 30,264 .22
Indian Aluminum Co., Ltd. 1,288,600 4,803
Indian Aluminum Co., Ltd. (Global Depositary Receipts) 1,308,771 4,744 .07
Indian Rayon and Industries Ltd. 1,019,800 10,547
Indian Rayon and Industries, Ltd.
(Global Depositary Receipts) 398,000 4,975 .11
Indo Gulf Fertilisers and Chemicals Corp. Ltd. 2,155,200 2,038
Indo Gulf Fertilisers and Chemicals Corp. Ltd.
(Global Depositary Receipts) 1,770,900 1,859 .03
Industrial Credit and Investment Corporation of India Ltd. 3,176,760 6,909 .05
Ispat Industries Ltd., 3.00% convertible Eurobonds
April 1, 2002 (FORMERLY NIPPON DENRO ISPAT LTD.) $3,999,000 2,099
Ispat Industries Ltd., 3.00% convertible bond April 1, 2001
(acquired 3/1/94, cost: $6,804,000)
(Formerly Nippon Denro Ispat Ltd.) (2) $7,000,000 3,675 .04
I.T.C. Ltd. 2,774,600 42,927 .32
Kirkoskar Cummins 1,838,000 23,136 .17
Madras Cements Ltd. 22,000 4,862 .04
Mahanagar Telephone Nigam Ltd. 24,041,000 205,038 1.51
Mahindra & Mahindra Ltd.
(Global Depositary Receipts) 958,333 14,135
Mahindra & Mahindra Ltd.,
5.0% convertible bond July 9, 2001
(acquired 7/3/96; cost: $5,952,000)(2) $5,954,000 7,137 .40
Master Gain Scheme (1) 367,000 115 -
Max India Ltd. 493,522 2,730
Max India Ltd., 12.50% nonconvertible debenture
March 2, 2004 INR81,661 320
Max India Ltd., warrants, expire January 1998 81,661 - .02
Motor Industries Co. Ltd. (4) 201,855 37,463 .28
Nicholas Piramal India Ltd. (4) 1,127,700 6,782 .05
Ranbaxy Laboratories Ltd. 1,217,050 22,509
Ranbaxy Laboratories Ltd.
(Global Depositary Receipts) 874,525 20,552 .32
Raymond Woollen Mills Ltd. 931,800 1,694
Raymond Woollen Mills Ltd.
(Global Depositary Receipts) 1,083,000 4,684 .05
Reliance Industries Ltd. 2,570,000 26,534 .20
SCICI Ltd., 3.50% convertible Eurobonds
April 1, 2004 $3,620,000 3,810 .03
Sundaram Finance Ltd. 153,000 1,329 .01
Tata Engineering and Locomotive Co. Ltd. 3,095,500 38,614
Tata Engineering and Locomotive Co. Ltd.
(Global Depositary Receipts) 4,047,891 62,135 .74
United Phospherous Ltd. 1,227,800 6,817
United Phospherous Ltd.
(Global Depositary Receipts) 443,264 2,660 .07
Videocon International Ltd. 20,100 17
Videocon International Ltd.
(Global Depositary Receipts) 62,200 78 -
Videsh Sanchar Nigam Ltd. 638,000 20,077
Videsh Sanchar Nigam Ltd.
(Global Depositary Receipts) (1) 507,400 10,529 .23
Zee Telefilms Ltd. (4) 1,010,200 3,292 .02
---------- ----------
1,015,652 7.48
---------- ----------
Indonesia - 3.51%
Asia Pacific Resources International Holdings Ltd. (1) 1,217,000 5,781 .04
Asia Pulp & Paper Co, Ltd. (American Depostary Receipts) (1) 1,000,000 15,125 .11
PT Bank Internasional Indonesia 10,231,459 8,838
PT Bank Internasional Indonesia, warrants,
expire January 17, 2000 (1) 909,462 357 .07
PT BAT Indonesia (1) 110,000 1,629 .01
PT Gudang Garam 1,470,000 6,168 .05
PT Hanjaya Mandala Sampoerna 21,990,000 83,898 .62
PT Indofood Sukses Makmur 46,735,200 107,658 .79
PT Indo-Rama Synthetics 26,315,500 23,815 .18
PT International Nickel Indonesia 5,069,500 10,010 .07
PT Jaya Real Property 6,857,000 9,238 .07
PT Kalbe Farma 569,000 761 .01
PT Lippo Bank 23,620,000 24,290 .18
PT Mayora Indah 10,380,000 5,871 .04
PT Modern Photo Film Co. 5,049,900 17,865 .13
PT Mulia Industrindo 20,948,072 10,987 .08
PT Pabrik Kertas Tjiwi Kimia 1,640,712 1,906 .01
PT Panin Bank 22,693,000 14,936
PT Panin Indonesia TBK, rights, expire August 4, 1997 (1) 11,346,500 1,867 .12
Perusahaan Perseroan (Persero) PT Indonesian
Satellite Corp. 3,683,500 11,023
Perusahaan Perseroan (Persero)PT Indonesian
Satellite Corp. (American Depositary Receipts) 1,924,480 57,614 .51
PT PP London Sumatra (1) 5,000,000 15,837 .11
PT Ramayana Lestari Sentosa 3,070,000 8,840 .06
PT Semen Cibinong 5,100,000 13,374 .10
PT Sorini Corp. (1) 250 - -
PT Tambang Timah (Persero) 4,921,000 7,642
PT Tambang Timah (Persero), Class B (Global Depositary Receipts) 646,270 9,856 .13
PT Tigaraksa Satria 2,173,140 2,659 .02
---------- ----------
477,845 3.51
---------- ----------
Malaysia - 3.38%
Arab-Malaysian Finance Bhd. 5,155,000 10,929 .08
Commerce Asset-Holding Bhd. 2,516,000 6,630
Commerce Asset-Holding Bhd., rights, expire July 23,1997 (1) 503,200 18
Commerce Asset-Holding Bhd., rights,
expire July 23, 1997 (1) 314,500 49 .05
Easterm & Oriental Bhd. 4,000,000 7,355 .05
Genting Bhd. 2,283,500 10,949 .08
Genting International PLC 8,972,000 26,467 .19
Guinness Anchor Bhd. 4,563,000 10,126 .07
Hap Seng Consolidated Bhd. 6,029,000 15,052 .11
Hong Leong Credit Bhd. 4,230,000 15,757
Hong Leong Credit Bhd., Class A (1) 386,000 1,424
Hong Leong Credit Bhd., rights, expire July 25, 1997 (1) 193,000 191
Hong Leong Credit Bhd., rights,
expire July 25 (1) 386,000 0 .13
IJM Corp. Bhd. 8,505,714 17,864 .13
IOI Corp. Bhd. 12,317,000 14,057 .10
Leader Universal Holdings Bhd. 8,920,000 16,048 .12
Malayan Banking Bhd. 10,000 105 -
Malaysian Airline System Bhd. 4,440,000 11,084 .08
Malaysian International Shipping Corp. Bhd. 3,076,000 7,984 .06
MBf Capital Bhd. 12,018,000 22,098 .16
Nestle (Malaysia) Sdn. Bhd. 4,765,000 35,688 .26
New Straits Times Press (Malaysia) Bhd. 3,769,000 22,105 .16
Oriental Holdings Bhd. 2,123,200 15,986 .12
O.Y.L. Industries Bhd. 1,281,980 8,128 .06
Renong Bhd. 27,015,000 35,328
Renong Bhd., 2.50% convertible bond January 15, 2005
(acquired 10/20/94, cost:$2,554,000) (2) $2,550,000 2,932
Renong Bhd., 2.50% convertible Eurobonds
January 15, 2005 $2,000,000 2,300
Renong Bhd., warrants, expire November 21, 2000 (1) 2,189,500 1,154
Renong Bhd. Iculs, 4.00% May 21, 2001 MYR3,503,200 1,111 .32
Resorts World Bhd. 967,000 2,912 .02
Rothmans of Pall Mall (Malaysia) Bhd. 1,676,000 16,471 .12
Sime Darby Bhd. 16,217,000 53,982 .40
Sime UEP Properties Bhd. 3,169,000 6,844 .05
Technology Resources Industries Bhd. (1) 9,195,000 15,814 .12
UMW Holdings Bhd. 6,844,359 32,276
UMW Holdings Bhd., warrants, expire January 26, 2000 (1) 619,159 1,521 .25
United Engineers (Malaysia) Bhd. 954,000 6,880 .06
YTL Power International Bhd. (1) 3,152,000 3,972 .03
---------- ----------
459,591 3.38
---------- ----------
Mauritius - 0.05%
State Bank of Mauritius 10,927,000 6,205 .05
---------- ----------
Mexico - 7.85%
Apasco, SA de CV 5,601,176 40,261 .30
Carso Global Telecom, SA de CV 2,645,000 10,673 .08
Cemex, SA de CV, Class A 2,956,762 12,789
Cemex, SA de CV, Class B 9,242,251 45,104
Cemex, SA de CV, ordinary participation certificates 9,413,720 40,955
Cemex, SA, Class A, ordinary participation certificates
(American Depositary Receipts)(acquired 6/14/93, cost: $8,000) (2) 1,183 10
Cemex, SA de CV, Class B (American Depositary Receipts) 755,792 7,274 .78
Cifra, SA de CV, Class A 23,767,650 43,999
Cifra, SA de CV, Class B 19,656,310 36,685
Cifra, SA de CV, Class B (American Depositary Receipts) 14,536,000 26,601
Cifra, SA de CV, Class C 18,706,334 29,958 1.00
Grupo Carso, SA de CV, Class A 2,645,000 18,512 .14
Grupo Casa Autrey (American Depositary Receipts) 810,000 16,453 .12
Grupo Financiero Banamex Accival, SA de CV, Class B (1) 31,893,850 82,047
Grupo Financiero Banamex Accival, SA de CV, Class L (1) 12,656,067 30,004
Grupo Financiero Banamex Accival, SA de CV,
7.00% convertible Eurobonds December 15, 1999 $103,000 101
Grupo Financiero Banamex Accival, SA de CV,
11.00% convertible July 15, 2003
(acquired 7/12/96, cost: $349,000)(2) $371,000 396 .82
Grupo Financiero Bancomer, SA de CV., Series L
33.08% convertible subordinated debentures May 16, 2002 MXN5,750,000 769 .01
Grupo Industrial Maseca, SA de CV, Class B
(American Depositary Receipts) 5,700 94 -
Grupo Televisa, SA, ordinary participation certificates (1) 481,000 7,339
Grupo Televisa, SA, ordinary participation certificates
(American Depositary Receipts) (1) 3,361,499 102,106 .80
Kimberly-Clark de Mexico, SA de CV, Class A 11,358,000 45,833
Kimberly-Clark de Mexico, SA de CV, Class B 350,000 1,404 .35
Pepsi-Gemex, ordinary participation certificates
(Global Depositary Receipts)
(Formerly Grupo Embotellador de Mexico) 1,086,100 13,576 .10
Sigma Alimentos, SA de CV, Class B 566,100 6,139 .05
Telefonos de Mexico, SA de CV, Class A 9,137,500 21,893
Telefonos de Mexico, SA de CV, Class L 13,706,250 32,874
Telefonos de Mexico, SA de CV, Class A
(American Depositary Receipts) 71,000 167
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) 7,886,275 376,571 3.18
Tubos de Acero de Mexico, SA
(American Depositary Receipts) (1) 904,300 16,673 .12
---------- ----------
1,067,260 7.85
---------- ----------
Morocco - 0.18%
Banque Commerciale du Maroc 35,443 3,202 .02
Cimenterie de l'Oriental, Class A (1) 92,503 6,510 .06
ONA SA 56,000 4,558 .03
Societe des Brasseries du Maroc 20,500 4,037 .03
Wafabank, Class A 72,000 5,883 .04
---------- ----------
24,190 .18
---------- ----------
Pakistan - 0.37%
Chakwal Cement Co. Ltd. (Global Depositary Receipts) (1) 891,111 891 .01
Engro Chemical Pakistan Ltd. 2,181,600 7,718 .05
Hub Power Co. Ltd. (Global Depositary Receipts) (1) 1,263,328 31,267 .23
Pakistan Telecommunication Corp.
(Global Depositary Receipts) 150,900 11,167 .08
---------- ----------
51,043 .37
---------- ----------
Peru - 1.75%
Cementos Lima SA 1,222,818 24,632 .18
Compania de Minas Buenaventura SA, Class A 1,485,596 13,842
Compania de Minas Buenaventura SA, Class B 111,975 1,102
Compania de Minas Buenaventura SA, Class B
(American Depositary Receipts) 423,500 8,338 .17
Credicorp Ltd. (4) 4,551,946 100,143 .74
Minsur SA-Trabajo 2,700,751 10,228 .08
Ontario-Quinta (acquired 8/15/94, cost: $12,900,000) (2) 12,571,524 18,167 .13
Telefonica del Peru, Class B (American Depositary Receipts) 2,344,700 61,402 .45
---------- ----------
237,854 1.75
---------- ----------
Philippines - 3.68%
Ayala Corp., Class B 42,273,425 30,482
Ayala Corp., Class B (Global Depositary Shares) 965,580 5,793 .27
Ayala Land, Inc., Class B 33,673,174 30,990
Ayala Land, Inc., convertible bond March 19, 2002 PHP260,000,000 9,867 .30
Bacnotan Consolidated Industries, Inc. 493,131 730
Bacnotan Consolidated Industries, Inc., 5.50% convertible
bond June 21, 2004 (acquired 6/8/94, cost: $4,483,000) (2) $4,500,000 3,330 .03
Bank of the Philippine Islands 2,306,300 14,704 .11
Benpres Holdings Corp.
(Global Depositary Receipts) (1) 2,306,510 16,148 .12
C&P Homes, Inc. 38,993,850 14,650 .11
Fil-Estate Land, Inc. (1) 25,300,000 7,393 .05
Fortune Cement Corp. 33,868,500 8,226 .06
HI Cement Corp. 33,051,900 6,272 .05
International Container Terminal Services, Inc. (1) 8,681,595 4,448
International Container Terminal Services, Inc., 6.00% convertible
bond February 19, 2000 (acquired 2/18/93, cost: $4,000,000) (1)(2) $4,000,000 6,200 .08
JG Summit Holdings, Inc., Class B 18,772,900 3,847
JG Summit Holdings, Inc., Class B
(Global Depositary Shares) 20,000 413
JG Summit Holdings, Inc.,
3.50% convertible bond December 23, 2003
(acquired 12/9/93, cost: $9,870,000) (1)(2) $9,870,000 7,254 .08
Keppel Philippines Holdings, Inc., Class B (1) 272,084 32 -
Manila Electric Co., Class B 3,705,607 18,282 .13
Metropolitan Bank and Trust Co. 2,019,752 42,924 .32
Petron Corp. 9,106,874 2,316
Petron Corp. (Global Depositary Receipts) 371,452 4,643 .05
Philippine Airlines Inc. (1) 53,811,255 10,211 .08
Philippine Commercial International Bank, Inc. 871,940 8,438 .06
Philippine Long Distance Telephone Co., ordinary 172,500 5,597
Philippine Long Distance Telephone Co.
(American Depositary Receipts) 1,591,305 102,241
Philippine Long Distance Telephone Co., convertible preferred,
Series II (Global Depositary Receipts) 484,000 16,940
Philippine Long Distance Telephone Co., convertible
preferred, Series III (Global Depositary Shares) 87,000 5,046 .96
Philippine National Bank (1) 913,359 6,205 .05
PR Holdings, Inc., subscription rights
(acquired 7/8/92, cost: $9,835,000) (1)(2) 2,236,600 2,812 .02
San Miguel Corp., Class B 25,352,853 66,870 .49
SM Prime Holdings, Inc. 74,867,000 22,162 .16
Southeast Asia Cement Holdings, Inc. (1) 68,088,782 3,307 .02
Universal Robina Corp. 29,809,400 10,860 .08
---------- ----------
499,633 3.68
---------- ----------
Poland - 0.47%
Bank Inicjatyw Gospodarczych BIG SA 1,589,957 1,912 .01
Bank Rozwoju Eksportu SA 604,700 12,701 .09
Elektrim 2,610,325 22,726
Elektrim, 2.0% convertible bond May 30, 2004 (2) DEM9,727,000 5,776 .21
Polifarb Wroclaw (1)(4) 1,294,778 4,848 .04
Zaklady Metali Lekkich Kety SA 162,680 2,476 .02
Zaklady Piwowarskie w Zywcu SA (4) 217,611 13,911 .10
---------- ----------
64,350 .47
---------- ----------
Portugal - 0.74%
Elec de Portugal (1) 264,000 4,850 .04
Portugal Telecom ,SA 913,000 36,871
Portugal Telecom, SA (American Depositary Receipts) 951,500 38,179 .55
TELECEL - Comunicacoes Pessoais, SA (1) 246,100 20,437 .15
TVI-Televisao Independente, SA (1) 105,500 158 -
---------- ----------
100,495 .74
---------- ----------
REPUBLIC OF CROATIA - 0.45%
PLIVA d.d. (Global Depositary Receipts) 3,761,053 61,117 .45
---------- ----------
RUSSIA AND FORMER REPUBLICS OF THE SOVIET UNION - 6.66%
AO Mosenergo Power Generation and Electrification
Amalgamation (Russian Depositary Trust Certificate) 750 10,508
AO Mosenergo Power Generation and Electrification
Amalgamation (American Depositary Shares) 638,500 27,615 .28
Ao Torgovy Dom Gum (Russian Depoitary Trust Certificate) (1) 270 10,935 .08
Avalon Oil (1)(4) 4,250,000 5,663 .04
Gez Investments Holding Ltd.,Class A
(aquired 9/11/95,cost: $230,000) (1)(2) 2,870 482
Gez Investments Holding Ltd.,Class B
(aquired 9/11/95,Cost: $12,623,000) (1)(2) 157,793 26,509 .20
Global Tele-Systems Ltd., warrants, expire February 2, 2001
(acquired 2/2/96, cost:$0) (1)(2) 1,944,444 11,667 .09
Irkutskenergo (Russian Depositary Trust Certificate) (1) 965 65,620 .48
JKX Oil & Gas PLC (1)(4) 10,230,233 7,157
JKX Oil & Gas PLC
7.00% convertible bond June 30, 2001
(acquired 6/6/96; cost: $2,000,000) (2)(4) 2,000,000 2,000 .07
Kamaz (1) 3,765,000 8,095 .06
Lenenergo (1) 27,836,800 23,105 .17
Lukinter Finance 3.50% convertible bond May 6,2002
(acquired 4/18/97; cost $16,536,000) (2) 16,428,000 20,453
LUKoil Holding (Russian Depositary Trust Certificate) 60 5,889
LUKoil Holding (American Depositary Receipts) 2,325,900 182,630 1.54
Moscow City Telephone Network (MGTS) (Russian
Depositary Trust Certificate) (1) 1,111 111,100 .82
New Century Capital Partners, LP
(acquired 12/7/95,cost: $11,071,000) (1)(2)(3) 10,920,000 11,071 .08
Nizhny-Non Svyaz RDC (Russian Depositary Trust Certificate) (1) 70 10,500 .08
Ramco Energy PLC (4) 1,417,000 24,903 .18
RAO Gazprom (American Depositary Receipts)
(acquired 10/21/96, cost:$38,674,000) (2) 2,322,800 39,952 .29
Russian Telecommunications Development Corp.
(acquired 12/22/93, cost: $3,800,000) (1)(2) 380,000 2,850
Russian Telecommunications Development Corp.,
nonvoting ordinary (acquired 12/22/93, cost: $6,200,000) (1)(2) 620,000 4,650 .06
St. Petersburg Telephone Network 12,913,020 21,823 .16
Star Mining Corp. NL (1) 18,884,400 2,565 .02
Unified Energy Systems of Russia (1) 735,796,500 266,285 1.96
Xavier Corp. (1) (4) 1,350,000 42 .00
---------- ----------
904,069 6.66
---------- ----------
Slovakia - 0.05%
VSZ, AS 371,928 6,971 .05
----------
South Africa - 3.79%
African Oxygen Ltd. 6,017,614 19,776 .15
Bidvest Group Ltd. 1,795,675 13,862 .10
Ellerine Holding Ltd. 1,430,761 10,193 .08
Foodcorp Ltd. 484,495 3,687 .03
Hudaco Industries Ltd. 1,452,000 7,045 .05
International Pepsi-Cola Bottler Investments
(aquired 12/18/95, cost: $9,900,000) (1)(2)(3) 100,000 10,000 .07
Iscor Ltd. 38,116,029 25,220 .19
JD Group Ltd. 2,215,178 13,680 .10
Malbak Ltd. 9,109,400 14,466 .11
Metro Cash and Carry Ltd. 38,604,000 34,057 .25
MIH Holdings Ltd. (1) 1,852,000 7,393 .05
Nasionale Pers Beperk-N, Class N 2,170,000 25,007 .18
Nedcor Ltd. (Global Depositary Receipts) 852,791 18,903
Nedcor Ltd., warrants, expire September 30, 1997
(acquired 11/21/95, cost: $513,000)(1)(2) 198,180 2,163 .16
Rembrandt Group Ltd. 1,927,000 20,571 .15
Sage Group Ltd. 1,570,000 8,311 .06
Sasol Ltd. 11,589,586 152,091 1.12
South Africa Capital Growth Fund, LP, Class A
(acquired 8/25/95, cost:$1,900,000) (1)(2)(3) 1,900 1,900
South Africa Capital Growth Fund, LP, Class D
(acquired 8/25/95,cost:$13,650,000) (1)(2)(3) 13,650 13,650 .11
South African Breweries Ltd. 3,212,378 98,660 .73
South African Druggist Ltd. 1,647,139 13,623 .10
---------- ----------
514,258 3.79
---------- ----------
South Korea - 6.38%
Anam Industrial Co. Ltd. 634,872 8,885 .07
Daegu Bank, Ltd. 298,750 2,517 .02
Daehan Asia Trust (International Depositary Receipts) 2,820 2,820 .02
Daehan Korea Trust (International Depositary Receipts) 500 327 -
Daewoo Corp. 257,738 2,100 .02
Daewood Securities Co., Ltd., nonvoting preferred 421,270 3,423
Daewood Securities Co., Ltd.,ordinary (1) 1,622,902 29,491 .24
Hanil Bank 4,161,090 23,482 .17
Housing & Commercial Bank 13,610 257 .00
Hyundai Electronics 842,650 43,274 .32
Hyundai Motor Co. 1,204,300 39,772
Hyundai Motor Co., nonvoting preferred
(Global Depositary Receipts) 1,781,580 18,306 .43
Kookmin Bank 1,213,233 22,782 .17
Korea Electric Power Corp. 3,135,890 93,794
Korea Electric Power Corp.
(American Depositary Receipts) 49,900 932
Korea Electric Power Corp.,
5.0% convertible bond August 1, 2001 $3,000,000 3,000 .72
Korea First Bank 790,350 3,301 .02
Korea Industrial Leasing Co., Ltd. 241,000 2,244 .02
Korea Long Term Credit Bank 281,793 4,357 .03
Korea Pacific Trust (International Depositary Receipts) (1) 3,000 3,375 .02
Korea Zinc Co. Ltd. 344,800 7,978 .06
Kyongnam Bank 733,607 7,684 .06
LG Chemical Ltd., preferred 330,000 1,900 .01
LG Electronics Inc. 1,960,854 36,517
LG Electronics Inc., nonvoting preferred 442,500 3,421
LG Electronics Inc., non-voting preferred
(Global Depositary Receipts) 707,100 4,101
LG Electronics Inc.
(Global Depositary Receipts) 13,488 113 .33
LG Securities Ltd., preferred (1)(4) 993,540 5,943
LG Securities Co., Ltd. (1)(4) 2,008,560 24,484 .22
Pacific Chemical Industrial Co. Ltd. 165,440 4,127 .03
Pohang Iron & Steel Co., Ltd. 610,680 61,810 .46
Samsung Display Devices 637,860 34,848
Samsung Display Devices 0.5% convertible Eurobonds
April 12, 2002 $1,000,000 1,160 .26
Samsung Electronics Co., Ltd., nonvoting preferred 118,403 5,506
Samsung Electronics Co., Ltd. 1,780,181 195,478
Samsung Electronics Co., Ltd., nonvoting preferred
(Global Depositary Shares) 1,611,168 43,501
Samsung Electronics Co., Ltd.
(Global Depositary Shares) 261,542 15,169
Samsung Electronics Co., Ltd., rights, expire July 1, 1997 (1) 29,392 1,685 1.92
Samsung Fire & Marine Insurance (1) 27,360 10,300 .08
Seoul Asia Index Trust (International Depositary Receipts) (1) 80 640 -
Shinhan Bank 1,490,470 22,021 .16
SK Telecom Co., Ltd. 51,900 38,013
SK Telecom Co., Ltd.
(American Depositary Receipts) 9,100 92 .28
Yukong Ltd. 1,302,084 31,597
Yukong Chf, warrants, expire June 18, 1999 (1) 10,000 514 .24
---------- ----------
867,041 6.38
---------- ----------
Sri Lanka - 0.07%
Asian Hotel Corp. (1) 12,215,000 2,717 .02
Development Finance Corp. of Ceylon 1,258,310 6,137 .05
National Development Bank of Sri Lanka 96,200 428 .00
---------- ----------
9,282 .07
---------- ----------
Taiwan - 9.44%
Accton Technology Corp. (1) 2,224,000 9,727
Accton Technology Corp. (Global Depositary Receipts) (1) 82,500 722 .08
Acer Computer International Ltd. 1,639,500 3,017 .03
Acer Inc. (1) 25,523,065 91,876
Acer Inc.
(Global Depositary Receipts) (1) 1,799,000 31,977 .91
Acer Peripherals Inc. 11,145,125 31,694 .23
Advance Semiconductor Engineering, Inc. (1) 24,745,608 93,976
Advance Semiconductor Engineering, Inc.
(Global Depositary Receipts) (1) 280,692 5,579 .73
Asia Cement Corp. 30,763,680 48,726 .36
Asia Corporate Partners Fund, Class B
(acquired 3/12/96; cost: $20,027,000) (1)(2)(3) 40,000 20,000 .15
Asustek Computer (1) 4,050,000 53,650 .38
Cathay Construction Co. Ltd. 17,740,000 30,652 .23
China Steel Corp. 14,042,500 14,862
China Steel Corp. (American Depositary Receipts)
(acquired 5/21/92; cost: $6,369,000) (2) 417,175 8,907 .16
Delta Electronics 6,674,000 41,322 .30
Inventec (1) 2,072,600 12,534 .09
Mosel Vitelic Inc. (1) 19,133,800 47,180 .35
Nan Ya Plasitic Corp. 13,320,000 38,838
Nan Ya Plasitic Corp.,
1.75% Eurobond July 19, 2001 10,020,000 14,329 .39
Primax Electronics 6,561,582 19,486 .14
Seres Capital (Cayman Islands)
(acquired 3/12/96; cost:$25,000) (1)(2) 2 25
Seres Capital (Cayman Islands), nonvoting
(acquired 3/12/96; cost: $125,000) (1)(2) 8 125 .00
Siliconware Precision Industries Co., Ltd. 10,160,920 34,382
Siliconware Precision Industries Co., Ltd.
(Global Depositary Receipts) (1) 90,856 1,545 .26
Taiwan Mask Corp. (1) 837,039 4,851 .04
Taiwan Semiconductor Manufacturing Co. Ltd. (1) 129,545,700 575,914 4.24
Ton Yi Industrial Corp. (1) 7,166,062 10,602 .08
U-Ming Marine Transport Corp. 1,772,138 1,352 .01
Unicap Electronics (1) 342,240 943 .01
Wus Printed Circuit Co., Ltd. 6,555,000 22,180 .17
Yangming Marine Transport Corp. 8,346,000 9,794 .07
Yieh Phui Enterprises 1.0% convertible bond June 18, 2007
(acquired 6/4/97, cost: 4,370,000) (2) 4,370,000 3,933 .03
---------- ----------
1,284,700 9.46
---------- ----------
Thailand - 0.93%
Alphatec Electronics PCL (1) 423,400 267 .00
Ayudhya Jardine CMG Life Assurance (1) 84,547 155 .00
Bangkok Bank PCL 4,604,160 31,765
Bangkok Bank PCL, 3.25% convertible
Eurobonds March 3, 2004 3,630,000 2,777 .25
Bangkok Insurance PLC 346,300 5,637 .04
Bank of Ayudhya PCL 3,548,500 5,570 .04
Charoen Pokphand Feedmill PCL 1,575,600 4,031 .03
Dusit Thani PCL 990,000 844 .01
Electricity Generating Authority of Thailand 11,975,217 29,474
Electricity Generating Authority of Thailand, local registered 22,530 47 .22
Industrial Finance Corp. of Thailand 2,402,000 3,072 .02
KR Precision 1,302,100 9,387 .07
Nakhornthai Integrated Steels Co., Ltd. (1)(4) 11,213,400 1,087 .01
Post Publishing PCL (4) 2,525,000 3,425 .03
Serm Suk PLC 210,166 4,562
Serm Suk PLC, local registered 64,960 806 .04
Siam Commercial Bank Co.Ltd. 832,100 3,419 .02
Swedish Motors Corp. PLC 1,608,100 748 .01
Thai Farmers Bank PCL 1,527,010 6,511
Thai Farmers Bank PCL, warrants, expire September 15, 2002 (1) 335,451 146 .05
Thai Glass Industries PCL 1,272,200 3,452 .03
Thai Military Bank PCL 2,133,684 2,398 .02
Wattachak PLC,
3.50% convertible bond December 6, 2003 $6,400,000 6,144 .04
---------- ----------
125,724 .93
---------- ----------
Turkey - 2.25%
Adana Cimento Sanayii TAS, Class A (4) 74,163,854 6,872
Adana Cimento Sanayii, TAS, Class C 25,469,510 270 .05
Ege Biracilik ve Malt Sanayii AS 37,745,919 8,775 .06
Koc Holding AS, ordinary 143,227,692 33,780 .25
Migros Turk TAS 41,911,363 29,654 .22
Netas Northern Electric Telekomunikasyon AS (1) 33,819,300 9,344 .07
Petrol Ofisi AS 143,335,605 27,044 .20
Trakya Cam Sanayii AS (4) 405,741,525 17,772 .13
Turliye Is Bankasi AS (Previously listed as Is Bankasi AS)(1) 134,538,700 52,582 .39
Turkiye Sise ve Cam Fabrikalari AS (4) 659,015,096 41,744 .31
Yapi ve Kredi Bankasi AS (4) 3,375,893,889 77,345 .57
---------- ----------
305,182 2.25
---------- ----------
Vietnam - 0.05%
Vietnam Frontier Fund
(acquired 7/21/94, cost: $3,000,000) (1)(2) 291,300 3,000 .02
Vietnam Investment Fund, preferred, units
(acquired 8/4/94, cost: $3,206,000) (1)(2)(3) 30 3,206
Vietnam Investment Fund, ordinary, units
(acquired 8/4/94, cost: less than $1,000) (1)(2)(3) 6 0 .03
---------- ----------
6,206 .05
---------- ----------
Multi National - 2.05%
Abacan Resource Corp. (1) 5,470,000 17,436 .13
Armada Gold Corp., Class A (1)(4) 4,600,000 1,733
Armada Gold Corp., warrants, expire February 18, 1997
(acquired 10/21/96, cost: $0)(1)(2)(4) 2,000,000 0 .01
Cie Financiere pour l'Europe Centrale SA (Global Depositary Receipts) (1) 103,195 2,850 .02
Diamondworks Ltd. (1) 1,500,000 1,956
Diamondworks Ltd.,warrants, expire April 4, 1997
(acquired 12/5/96, cost: $0)(1)(2) 1,500,000 0 .02
Dragon Oil PLC (1) 101,800,000 4,240
Dragon Oil Placement, rights, expire 7/21/97 (1) 61,080,000 890 .04
Emerging Markets Gold Fund, ordinary
(acquired 1/28/94; cost $96,000) (1)(2)(3) 76,500 1,731 .01
Freeport-McMoRan Copper & Gold Inc., Class A 90,000 2,632 .02
Marchmont Gold (FORMERLY TIMBUKTU GOLD)(1) 148,380 50 .00
New Asia East Investment Fund Ltd., Class A
(acquired 5/23/96, cost:$2,936,000) (1)(2)(3) 293,600 2,921
New Asia East Investment Fund Ltd., Class B, nonvoting
(acquired 5/23/96, cost:$40,064,000)(1)(2)(3) 4,006,400 39,861 .31
New Europe East Investment Fund, Class B
(acquired 6/4/93, cost $51,092,000) (1)(2) 436 57,353 .42
Panamerican Beverages Inc., Class A 4,062,800 133,565 .99
Sutton Resources Ltd (1) 1,120,000 9,908
Sutton Resources Ltd., warrants, expire September 30,1998
(acquired 3/21/96, cost:$0) (1) 155,000 786 .08
--------- -------
277,912 2.05
Miscellaneous - 0.61% ---------- ----------
Equity-type securities in initial period of acquisition 82,443 .61
---------- ----------
TOTAL EQUITY-TYPE SECURITIES (cost: $8,289,835,000) ---------- ----------
12,135,350 89.34
---------- ----------
Principal
Amount
(000)
BOND & NOTES
Argentina - 1.36%
Republic of Argentina
9.25% February 23, 2001 18,650 19,512 .14
Republic of Argentina
11.00% October 9, 2006 34,075 37,951 .28
Republic of Argentina
11.375% January 30, 2017 27,250 30,343 .22
Argentina ARP 11.75% February 12, 2007 ARP41,000 45,660 .34
(acqired 2/14/97, cost: $40,772,000)
Republic of Argentina Bocon PIK
3.2424% April 1, 2007 (5) ARP18,415 12,645 .09
Republic of Argentina Bocon PIK
Capitalized Interest 3.2424% April 1, 2007 ARP7,089 7,090 .05
Republic of Argentina Bearer Bond Series L 6.750%
March 31, 2005 (5) $20,419 19,202 .15
CEI Citicorp Holdings Series B 11.25% February 14, 2007 ARP11,675 11,852 .09
---------- ----------
184,255 1.36
---------- ----------
Brazil - 0.57%
Comtel Brasileira Ltda. 10.75% September 26, 2004
(acquired 9/18/96, cost:$2,400,000)(2) $2,400 2,598 .02
Federal Republic of Brazil Capitalization Bond PIK
8.00% April 15, 2014 8,685 6,969 .05
Federal Republic of Brazil Debt Conversion Bond Series L
Frn .65625% April 15, 2012 (5) 23,250 19,211 .14
Federal Republic of Brazil Bearer Bond Series EI-L 8,811 8,132 .07
6.875% April 15, 2006 (5)
Brazil NMB L FRN SF 6.9375% April 15, 2009 (5) 7,100 6,213 .05
Multicanal Participacoes SA Class B
12.625% June 18, 2004 10,500 12,002 .09
MYDFA Trust 6.54688% September 15, 2007
(acquired 10/2/96, cost:$14,122,000)(2) 16,497 15,054 .11
Tevecap SA 12.625% November 26, 2004 6,470 6,996 .04
---------- ----------
77,175 .57
---------- ----------
Bulgaria - 0.35%
Republic of Bulgaria Interest Arrears Bond
6.5625% July 28, 2011 20,250 14,661 .12
Republic of Bulgaria Front Loaded Interest Reduction Bond
Series A 2.25% July 28, 2012 56,450 32,244 .23
---------- ----------
46,905 .35
---------- ----------
Columbia - 0.02%
Comunicacion Cellular SA
0%/13.125% November 15, 2003 (1)(6) 3,000 2,145 .02
---------- ----------
Ecuador - 0.12%
Republic of Ecuador Past Due Interest Bonds
6.4375% February 27, 2015 (5) 25,563 16,456 .12
---------- ----------
India - 0.00%
Flex Industries Ltd. 13.50% December 31, 2004 INR 29,929 614 .00
---------- ----------
Mexico - 0.39%
Banco Nacional de Comercio Exterior, S.N.C.
7.25% February 2, 2004 3,375 3,147 .02
Grupo Televisa, SA
0%/13.25% May 15, 2008 (1)(6) $3,000 2,085 .02
Innova, S. de R.L. 12.875%
Senior Notes due April 1, 2007 (acquired 3/26/97,cost: $993,000)(2) $1,000 1,051 .01
Tubos de Acero de Mexico, SA
13.75% December 8, 1999
(acquired 11/23/94, cost: $3,714,000)(2) 3,750 4,247 .03
United Mexican Government Bond
7.875% August 6, 2001 (5) 1,150 1,152 .01
United Mexican States Discount Bonds Series A
UNIT 6.86719% December 31, 2019 1,750 1,631 .01
United Mexican States Discount Bonds Series B
UNIT 6.835% December 31, 2019 (5) 500 466 .00
United Mexican States Discount Bonds Series C
UNIT 6.820% December 31, 2019(5) 3,750 3,495 .03
United Mexican States Discount Bond Series D
6.1825% December 31, 2019(5) 2,750 2,563 .02
United Mexican States Government Bond
7.5625% August 6, 2001 (acquired 7/29/96,
cost: $4,980,000) (2)(5) 5,000 5,009 .03
United Mexican States Government Bond
11.375% September 15, 2016 6,010 6,755 .05
United Mexican States Government Bond
11.50% May 15, 2026 6,670 7,620 .06
United Mexican States Government Bond
9.75% February 6, 2001 13,200 13,942 .10
---------- ----------
53,163 .39
---------- ----------
Panama - 0.20%
Republic of Panama Interest Reduction Bond 3.50% due
July 17, 2014 (acquired 11/8/95, cost: $14,546,000)(2)(5) 25,114 19,432 .14
Republic of Panama Past Due Interest Bond 6.5625% due
July 17, 2016 (acquired 6/21/96, cost:$5,737,000)(2)(5) 8,562 7,534 .06
---------- ----------
26,966 .20
---------- ----------
Peru - 0.50%
Republic of Peru (Front Loaded Interest Loaded Reduction Bond) 29,500 17,700 .13
3.25% March 7, 2017 (acquired 8/5/96, cost: $16,975,000) (2)(5)
Republic of Peru (Front Loaded Interest Loaded Reduction Bond)
4.00% March 7, 2017 (acquired 3/7/97, cost: $50,414,000)(2)(5) 77,625 50,747 .37
---------- ----------
68,447 .50
---------- ----------
Philippines - 0.15%
Republic of Philippines (Front Loaded Interest Reduction
Bond) Series B 5.00% due June 1, 2008 21,250 20,018 .15
---------- ----------
Russian Federation - 0.05%
Vneshekonombank A 8.00%
December 15, 2020 (1)(5) DEM6,500 3,622 .02
Vneshekonombank A 8.00%
8.00% December 15, 2020 (5) 4,000 3,672 .03
---------- ----------
7,294 .05
South Africa - 0.10%
Republic of South Africa 13.00% August 31, 2010 ZAR64,250 12,988 .10
---------- ----------
Venezuela - 0.46%
Republic of Venezuela (Front Loaded Interest Reduction
Bond) Series A Eurobonds 6.75% March 31, 2007 (5) $11,190 10,407 .08
Republic of Venezuela (Front Loaded Interest Reduction
Bond) Series B Eurobonds 6.75% March 31, 2007 (5) 10,476 9,743 .07
Republic of Venezuela Debt Conversion Bond
6.75% December 18, 2007 (5) 45,000 41,738 .31
---------- ----------
61,888 .46
Multi National - 0.18%
Global Tele-systems Group Loan 10.00% February 1, 2001
(acquired 2/2/96, cost; $25,872,000)(1)(2) 29,954 25,725 .18
---------- ----------
TOTAL BONDS AND NOTES (cost: $ 534,243,000) 604,039 4.45
---------- ----------
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 3.16%
American Express Credit Corp. 5.52% due 7/14/97 20,000 $19,957 .15
Canada Bills 5.44-5.51% due 7/24-9/5/97 66,200 65,669 .48
Canadian Imperial Holdings Inc. 5.565% due 8/4/97 19,800 19,693 .15
Commonwealth Bank of Australia 5.53% due 8/4/97 46,800 46,548 .34
Daimler-Benz AG 5.52% due 7/14/97 4,700 4,690 .03
Halifax Building Society 5.55% due 7/14/97 48,500 48,395 .36
Hershey Foods Corp. 5.53% due 8/1/97 4,200 4,179 .03
National Australia Funding (DE) Inc. 5.54-5.62% due 7/7-9/11/97 60,300 60,061 .44
Nestle Capital Corp. 5.52% due 9/12/97 20,000 19,773 .15
Royal Bank of Canada 5.61% due 7/15/97 30,000 29,930 .22
RTZ America, Inc. 5.58% due 9/9/97 45,400 44,899 .33
Societe Generale N.A. Inc. 5.58% due 9/10/97 20,000 19,777 .14
Svenska Handelsbanken Inc. 5.62% due 7/16/97 46,200 46,085 .34
---------- ----------
429,656 3.16
---------- ----------
Federal Agency Discount Notes - 1.86%
Federal Home Loan Banks 5.535% due 8/7/97 15,000 14,914 .11
Federal Home Mortgage Corp. 5.41%-5.57% due 7/14-9/10/97 114,055 113,121 .83
Federal National Mortgage Assn. 5.44%-5.535% due 7/14-9/8/97 125,600 124,639 .92
---------- ----------
252,674 1.86
---------- ----------
Non-U.S. Government Short -Term Obligations - 0.16%
Kenya Government Treasury Bills due 9/22/97 KES187,250,000 3,298 .03
Mesbla SA Series 2
13.25% convertible bond February 1, 1997 (1) R$ 35,460,000 112 .00
Polish Government Treasury Bills due 1/7-4/17/98 PLZ 68,000 18,222 .13
---------- ----------
21,632 .16
---------- ----------
Non-U.S. Currency - 0.61%
Chilean Peso CHP7,360,183 17,684 .13
New Taiwanese Dollar NT$1,818,339 65,455 .48
---------- ----------
83,139 .61
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost:$792,814,000) 787,101 5.79
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: $ 9,616,892,000) 13,526,490 99.58
Excess of cash and receivables over liabilities 57,154 .42
---------- ----------
NET ASSETS $13,583,644 100.00%
========== ==========
Forward Contracts
NET ASSETS including Forward Contracts
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, 1996, the total market value and cost of such securities was $536,087,000
and $497,671,000, respectively, and the market value represented 5.93% of net assets. Such securities, excluding convertible bonds
and American Depositary Receipts, are valued at fair value.
3. Includes an unfunded capital commitment representing a binding commitment made by the fund which may be paid in the future.
4. Coupon rate may change periodically.
5. Represents a zero coupon bond which will convert to a coupon-bearing security at a later date.
6. Participation interests were acquired through the financial instituition indicated parenthetically.
7. Security is currently in default.
Non-U.S. Currency Symbols:
ARP - Argentine Peso
CHP - Chilean Peso
DEM- German Deutsche Mark
INR - Indian Rupee
MXN -Mexican Peso
MYR - Malaysian Dollar
NT$ - New Taiwanese Dollar
PLZ - Polish Zloty
R$ - Brazilian Real
</TABLE>
See Notes to Financial Statements
EQUITY-TYPE SECURITIES ADDED TO THE
PORTFOLIO SINCE DECEMBER 31, 1996
Accton Technology
Al-Ahram Beverages
Asia Cement
Asia Pulp & Paper
Asustek Computer
Avalon Oil
Banco Real
Banco Real de Investimento
Bangkok Insurance
PT BAT Indonesia
Bavaria
Beijing Datang Power Generation
Black Swan Gold Mines
Cathay Construction
Centrais Electrica de Santa Catarina
China Eastern Airlines
Delta Electronics
Elec de Portugal
Electrolux Brasileiras
Elektrim
Ellerine Holdings
Encorpar
Fodcorp
Grupo Casa Autrey
Hyundai Electronics
Industrial Credit and Investment Corp. Of India
Kirloskar Cummins
Lenenergo
LIGHT - Servicos de Eletricidade
Lukinter Finance
Malaysian International Shipping
Mbf Capital
Mosel Vitelic
Nan Ya Plastics
Oriental Holdings
PT Panin Bank
Reliance Industries
Rothmans of Pall Mall (Malaysia)
Samsung Display Devices
Samsung Fire & Marine Insurance
PT Semen Cibinong
SK Telecom
South African Druggists
Taiwan Mask
Unibanco - Uniao de Bancos Brasileiros
Unified Energy Systems of Russia
United Engineers (Malaysia)
VSZ
Yieh Phui Enterprises
YTL Power International
Zhejiang Expressway
EQUITY-TYPE SECURITIES ELIMINATED FROM THE
PORTFOLIO SINCE DECEMBER 31, 1996
Brisa
CAP
Companhia Suzano de Papel e Celulose
Companhia Vidraria Santa Marina
Consolidated Electric Power Asia
Corporacion Geo
Gold Fields of South Africa
Haitai Stores
Hellenic Telecommunicatins Organization
India Fund
Industrias Klabin de Papel e Celulose
Intracom
Iochpe-Maxion
Korea Mobile Telecommunications
PT Kabelmetal Indonesia
Pilipino Telephone
PT Praxair Indonesia
Refrigeracao Parana
Rhodia-Ster
Siam City Bank
Ssangyong Investment & Securities
SsanyYong Oil Refining
Taiwan American Fund
Taiwan Opportunities Fund
Telecommunicacoes de Minas Gerais
Turkiye Garanti Bankasi
EMERGING MARKETS GROWTH FUND, INC.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
Statement of Assets and Liabilities (dollars in
at June 30, 1997 thousands)
Assets:
Investment securities at market
(cost: $9,616,892) ............... $13,526,490
Cash ............................... 7,675
Receivables for--
Sales of investments ............. $49,861
Sales of fund's shares 110,411
Dividends and accrued interest ... 69,450 229,722
------------------ ----------------
13,763,887
----------------
Liabilities:
Dividend payable 8,158
Non-U.S. taxes payable 16,899
Payables for--
Purchases of investments ......... 78,979
Unfunded capital commitments 64,839
Open forward currency contracts 453
Management services .............. 6,730
Accrued expenses ................. 4,185 155,186
------------------- ----------------
180,243
----------------
Net Assets at June 30, 1997 --
Equivalent to $70.87 per share on
191,671,413 shares of $0.01 par value
capital stock outstanding (authorized
capital stock -- 200,000,000 shares)......... $13,583,644
================
Statement of Operations (dollars in
for the Year Ended June 30, 1997 thousands)
Investment Income:
Income:
Dividends ........................ $188,116
Interest ......................... 166,826 $354,942
-------------------
Expenses:
Management services fee .......... 64,360
Custodian fee .................... 11,398
Registration statement and prospectus 542
Auditing and legal fees .......... 242
Taxes other than federal
income tax ..................... 163
Reports to shareholders .......... 28
Other expenses ................... 1,550 78,283
------------------ ----------------
Income before non-U.S. taxes........ 276,659
Non-U.S. taxes...................... (399)
----------------
Net investment income .............. 276,260
----------------
Realized Gain and Unrealized
Appreciation on Investments:
Realized gain before non-U.S. taxes..... 477,400
Non-U.S. taxes...................... 2,916
------------------
Net realized gain .................. 480,316
Net increase in unrealized appreciation
on investments..................... 2,186,525
Net unrealized depreciation on open forward
currency contracts........................ (747)
-------------------
Net unrealized appreciation ...... 2,185,778
Non-U.S. taxes.. (5,946) 2,179,832
------------------ ----------------
Net realized gain and unrealized
appreciation on investments ............. 2,660,148
----------------
Net Increase in Net Assets Resulting
from Operations .................... $2,936,408
================
Statement of Changes in Net Assets
(dollars in thousands)
Year Ended Year Ended
June 30,1997 June 30, 1996
------------------ ----------------
Operations:
Net investment income .............. $276,260 $167,366
Net realized gain on investments ... 480,316 55,275
Net unrealized appreciation
on investments ................... 2,179,832 781,427
------------------ ------------------
Net increase in net assets
resulting from operations ...... 2,936,408 1,004,068
------------------ ------------------
Dividends and Distributions Paid
to Shareholders:
Dividends from net
investment income ................ (304,645) (169,255)
Distributions from net realized
gain on investments .............. (160,065) (140,664)
------------------ ------------------
Total dividends and
distributions .................. (464,710) (309,919)
------------------ ------------------
Capital Share Transactions:
Proceeds from shares sold:
37,177,633 and 34,530,418 shares, respectively 2,214,203 1,882,259
Proceeds from shares issued in
reinvestment of net investment
income dividends and
distributions of net realized
gain on investments:
7,713,936 and 5,829,211 shares,
respectively ...................... 447,083 302,442
------------------ ------------------
Net increase in net assets
resulting from capital share
transactions ................... 2,661,286 2,184,701
------------------ ------------------
Total Increase in Net Assets 5,132,984 2,878,850
Net Assets:
Beginning of year.................. 8,450,660 5,571,810
------------------ ------------------
End of year (including excess distributions
over net investment income: $39,274 and $3,949,
respectively.................................... $13,583,644 $8,450,660
================== ==================
</TABLE>
See Notes to Financial Statements
Emerging Markets Growth Fund
Notes to Financial Statements
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 fund's investment objective is to seek long-term
capital growth through investment in developing country equity securities. The
preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
Equity securities, including depositary receipts, are valued at the last
reported sale price on the exchange or market on which such securities are
traded, as of the close of business on the day the securities are being valued
or, lacking any sales, at the last available bid price. In cases where equity
securities are traded on more than one exchange, the securities are valued on
the exchange or market determined by the investment adviser to be the broadest
and most representative market, which may be either a securities exchange or
the over-the-counter market. Fixed-income securities are valued at prices
obtained from a pricing service, 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 quoted bid and asked prices or at
prices for securities of comparable maturity, quality and type. Securities with
original maturities of one year or less having 60 days or less to maturity are
amortized to maturity based on their cost if acquired within 60 days of
maturity or, if already held on the 60th day, based on the value determined on
the 61st day. Forward currency contracts are valued at the mean of
representative quoted bid and asked prices. Securities and assets for which
representative market quotations are not readily available are valued at fair
value as determined in good faith under policies approved by the fund's 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. In the event
the fund purchases securities on a delayed delivery or "when-issued" basis, it
will segregate with its custodian liquid assets in an amount sufficient to meet
its payment obligations in these transactions. 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 and premiums on
securities purchased are amortized over the life of the respective securities.
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 year. The fund
records realized gains or losses on forward currency contracts at the time the
contracts are offset by entry into closing transactions or are extinguished by
the delivery of currency. 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 $11,398,000 includes $373,000 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%. Net realized gain and net unrealized gain of the fund derived in
Venezuela are subject to certain non-U.S. taxes at rates between 15% and 34%.
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 June 30, 1997, net unrealized appreciation on investments, excluding
forward currency contracts, for federal income tax purposes aggregated
$3,854,190,000, net of accumulated deferred taxes totaling $14,837,000 on net
unrealized appreciation of Chilean and Indian securities, of which
$4,497,769,000 related to appreciated securities and $643,579,000 related to
depreciated securities. During the year ended June 30, 1997, the fund realized,
on a tax basis, a net capital gain of $477,196,000 on securities transactions.
The cost of portfolio securities, excluding forward currency contracts, for
federal income tax purposes was $9,657,463,000 at June 30, 1997.
4. The fee of $64,360,000 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 June 30, 1997, accumulated undistributed net realized gain on
investments was $350,271,000 and additional paid-in capital was $9,376,755,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $4,696,068,000 and $2,189,628,000, respectively,
during the year ended June 30, 1997.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the year ended June 30, 1997, such non-U.S. taxes were $16,606,000. Net
realized currency losses on dividends, interest, withholding taxes reclaimable,
and purchases and sales of non-U.S. equity-type securities and bonds were
$12,333,000 for year ended June 30, 1997.
The fund reclassified $1,237,000 from additional paid-in capital to
undistributed net investment income and $1,546,000 from additional paid-in
capital to undistributed net realized gain for the year ended June 30, 1997.
The fund may enter into forward currency contracts, which represent
agreements to exchange currencies of different countries at specified future
dates at specified rates. The fund purchased forward currency contracts to
hedge the foreign exchange exposure in certain securities held by the fund
which are pegged to or denominated in various non-U.S. currencies. 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 June 30, 1997, the fund had outstanding forward currency
contracts to sell non-U.S. currencies as follows:
NON-U.S. CURRENCY SALE CONTRACTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Contract Amount U.S. Valuation at 6/30/97
-------------------------------- --------------------------------------
Unrealized
Non-U.S. U.S. Amount Appreciation
(Depreciation)
---------------------------------------------------------------------------------
French francs
expiring 1/7/98 FF4,491,000 $788,000 $774,000 $14,000
German deutschemarks
expiring 7/30/97 - 1/7/98 DM14,173,000 8,362,000 8,213,000 149,000
Indonesian rupiah
expiring 5/19-6/10/98 IR203,180,808,000 76,833,000 78,657,000 (1,824,000)
Pound sterling
expiring 1/7/98 L890,000 1,440,000 1,474,000 (34,000)
Swiss francs
expiring 1/7/98 SFR1,116,000 786,000 783,000 3,000
Thailand bahts
expiring 5/19/98 THB2,041,584,000 73,058,000 71,819,000 1,239,000
-----------------
$ (453,000)
=================
</TABLE>
*****
PER SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Year ended June 30
--------------------------------------------------------------------
1997 1996 1995 1994 1993
--------------------------------------------------------------------
Net Asset Value, Beginning of
Year $57.57 $52.36 $58.75 $44.95 $38.64
-------- -------- -------- -------- -------
Income from Investment
Operations:
Net investment income 1.61 1.30 .87 .53 .62
Net realized and unrealized
gains (losses) on investments
before non-U.S. taxes 14.51 6.49 (.79) 15.29 7.33
Non-U.S. taxes (.01) (.01) (.03) (.39) .06
-------- -------- -------- -------- -------
Total income from
investment operations 16.11 7.78 .05 15.43 8.01
-------- -------- -------- -------- -------
Less Distributions:
Dividends from net
investment income (1.79) (1.30) (.63) (.49) (.56)
Distributions from net
realized gains (1.02) (1.27) (5.81) (1.14) (1.14)
-------- -------- -------- -------- -------
Total distributions (2.81) (2.57) (6.44) (1.63) (1.70)
-------- -------- -------- -------- -------
Net Asset Value, End of Year $70.87 $57.57 $52.36 $58.75 $44.95
======= ======= ======= ======= =======
Total Return 29.17% 15.49% (1.22)% 34.33% 21.55%
Ratios/Supplemental Data:
Net assets, end of year
(in millions) $13,584 $8,451 $5,572 $4,170 $2,574
Ratio of expenses to average
net assets .78% .84% .91% 1.00% 1.01%
Ratio of expenses and non-U.S.
taxes to average net assets .78% .85% .94% 1.04% 1.07%
Ratio of net income to average
net assets 2.74% 2.54% 1.70% .91% 1.82%
Average commissions paid
per share/1/ .13 cents .10 cents .02 cents .01 cents .02 cents
Portfolio turnover rate 23.75% 17.78% 23.75% 18.13% 11.97%
</TABLE>
1 Brokerage commissions paid on portfolio transactions increase the cost of
securities purchased or reduce the proceeds of securities sold and are not
separately reflected in the fund's statement of operations. Shares traded on a
principal basis (without commissions), such as most over-the-counter and
fixed-income transactions, are excluded. Generally, non-U.S. commissions are
lower than U.S. commissions when expressed as cents per share but higher when
expressed as a percentage of transactions because of the lower per-share prices
of many non-U.S. securities.
RESULTS OF PERIODIC MEETING OF SHAREHOLDERS HELD JUNE 27, 1997
- --------------------------------------------------------------
Shares Outstanding on May 2, 1997 (record date)................185,969,919
Shares Voting on June 27, 1997.................................147,080,012
(79%)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Percent Percent
of of
Shares Shares Percent
Voting Votes Voting Votes of Shares
ELECTION OF DIRECTORS Votes For For Against Against Withheld Withheld
- ----------------------------------------------------------------------------------------------------
Nancy Englander 147,072,477 100% 7,535 0% 0 0%
David I. Fisher 147,072,477 100 7,535 0 0 0
Khalil Foulathi 146,809,826 100 7,535 0 262,651 0
Beverly L. Hamilton 147,072,477 100 7,535 0 0 0
Raymond Kanner 146,809,826 100 7,535 0 262,651 0
Marinus W. Keijzer 146,809,826 100 7,535 0 262,651 0
Hugh G. Lynch 146,809,826 100 7,535 0 262,651 0
Helmut Mader 147,072,477 100 7,535 0 0 0
Teresa E. Martini 142,957,751 97 7,535 0 4,114,726 3
John G. McDonald 147,072,477 100 7,535 0 0 0
William Robinson 147,072,477 100 7,535 0 0 0
Patricia A. Small 147,072,477 100 7,535 0 0 0
Walter P. Stern 147,072,477 100 7,535 0 0 0
Shaw B. Wagener 147,069,595 100 7,535 0 2,882 0
- ----------------------------------------------------------------------------------------------------
Percent Percent
of of
Shares Shares Percent
Voting Votes Voting Votes of Shares
Votes For For Against Against Withheld Withheld
- ----------------------------------------------------------------------------------------------------
INCREASED AUTHORIZED CAPITAL STOCK
Increase Authorized Capital Stock of
the fund from 200 million shares to
400 million shares 145,269,060 99% 1,802,236 1% 8,716 0%
CONVERSION TO "INTERVAL FUND" STATUS
Convert fund from closed-end fund to
an open-end "Interval Fund" 145,036,269 99% 1,548,785 1% 494,958 0%
BOARD CHANGES TO AUTHORIZED CAPITAL STOCK
Amend Articles of Incorporation of the fund
to reflect the ability of the Board of
Directors to increase or decrease the
authorized capital stock of the fund 138,466,610 94% 8,118,444 6% 494,958 0%
BOARD STANDARDS APPLICABLE TO FUND
SHARE REDEMPTIONS
Amend certain provisions regarding the
redeemability of the fund's shares in
the Articles of Incorporation, reflecting
the ability of the Board of Directors to
set standards, from time to time, applicable
to the redemption of fund shares 146,206,068 99% 378,986 0% 494,958 1%
FUND BORROWING FOR TEMPORARY OR EMERGENCY
PURPOSES
Amend investment policy to permit the fund
to borrow from a bank for temporary or
emergency purposes in amounts not exceeding
5% of its assets, based on current value,
and amending the by-laws of the fund to
reflect such amendment 145,948,786 99% 378,986 0% 752,240 1%
TERMINATE EXISTING SHAREHOLDERS' AGREEMENT
Terminate the existing shareholders'
agreement, and amend the Articles of
Incorporation by incorporating the
restrictions on transferability of shares
currently provided under the fund's
shareholders' agreement 144,673,075 98% 1,708,641 1% 698,296 1%
RATIFICATION OF AUDITORS
Price Waterhouse LLP 147,077,803 100% 0 0% 2,209 0%
</TABLE>
BOARD OF DIRECTORS
Khalil Foulathi, Abu Dhabi, United Arab Emirates
Executive Director, Evaluation and Followup
Department, Abu Dhabi Investment Authority
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
Raymond Kanner, Stamford, Connecticut
Senior Investment Manager, IBM Retirement Funds
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
Director, 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
William Robinson, Gouvieux, France
Director, Aga Khan Fund for Economic Development
Patricia A. Small, Oakland, California
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.
Shaw B. Wagener, Los Angeles, California
Executive Vice President and Director of the fund
Executive Vice President and Director,
Capital International, Inc.
- ----------------------------------------------------------------
Robert B. Egelston, a member of the Board of Directors since the fund's
inception and its Chairman from June 2, 1986 to June 21, 1991, did not stand
for re-election. The Directors wish to thank him for his years of service and
his many contributions to the fund.
- ----------------------------------------------------------------
OTHER OFFICERS
Roberta A. Conroy, Los Angeles, California
Senior Vice President and Secretary of the fund
Assistant General Counsel,
The Capital Group Companies, Inc.
Michael A. Felix, Brea, California
Vice President and Treasurer of the fund
Vice President, Capital International, 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.
Peter C. Kelly, Los Angeles, California
Vice President of the fund
Senior Vice President, Capital International, Inc.
Victor D. Kohn, Los Angeles, California
Vice President of the fund
Executive Vice President,
Capital Research International
Nancy J. Kyle, New York, New York
Vice President of the fund
Senior Vice President, International,
Capital Guardian Trust Company
Abbe G. Shapiro, Los Angeles, California
Vice President of the fund
Assistant Vice President, Capital International, Inc.
Jennifer L. Butler, Los Angeles, California
Assistant Secretary of the fund
Fund Administrative and Compliance Associate,
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 92821-5804
CUSTODIAN OF ASSETS
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W., Suite 500
Washington, D.C. 20005-1208
Independent Accountants
Price Waterhouse LLP
400 South Hope Street
Los Angeles, California 90071-2889
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/3489
E 1997 Emerging Markets Growth Fund, Inc.
Lit. No. EMGF-011-0897 (NLS)
|
|