Emerging Markets Growth Fund/SM/
Seeks Long-Term Growth of Capital by Investing in Companies Operating in
Developing Countries Around the World
Annual Report
For the Year Ended June 30, 2000
[illustration of world map]
Fellow Shareholders:
The 12 months ended June 30 - our 2000 fiscal year - produced another roller
coaster ride in emerging markets stocks. Prices declined, rallied dramatically
for a couple of months, leveled off, fell sharply again, and then rallied once
more toward the close of the fiscal year. For investors in Emerging Markets
Growth Fund, it was a case of all's well that ends well. The value of your
holdings rose 25.6%* for the 12 months. During this same period, the unmanaged
Morgan Stanley Capital International Emerging Markets Free (EMF) Index, which
tracks stocks in 26 developing countries, was up 9.5%.
*All percentage gain/loss figures are in U.S. dollars and include reinvestment
of distributions unless otherwise indicated.
The longer term comparisons with the EMF Index also are favorable. For the five
years ended June 30 - a period marked by wide swings in the market - the fund
generated a total return of 63.7%, compared with a 5.0% increase recorded by
the index. For the 10 years ended June 30, the fund's total return was 304.5%
vs. 135.4% for the index.
Both in absolute terms and relative to our benchmark, Emerging Markets Growth
Fund's fiscal 2000 results were particularly satisfying. They were achieved in
an environment that saw emerging markets buffeted by numerous political and
economic crosscurrents and hit especially hard by two developments that
originated outside our investment universe: the selloff in U.S. technology
stocks and concern that rising interest rates could eventually hurt the
developing world. These factors combined to drive the EMF Index down more than
20% (excluding reinvestment) between mid-March and the latter part of May.
[Begin Sidebar]
EMGF Total Returns vs. Morgan Stanley Capital International Emerging Markets
Free (EMF) Index for periods ended 6/30/00 (with distributions reinvested)
<TABLE>
<CAPTION>
Emerging Annualized MSCI Annualized
Markets Emerging
Growth Fund Markets
(EMGF) Free
Index
<S> <C> <C> <C> <C>
12 Months +25.6% - +9.5% -
3 Years +9.7 +3.1% -14.2 -5.0%
5 Years +63.7 +10.4 +5.0 +1.0
10 Years +304.5 +15.0 +135.4 +8.9
</TABLE>
[End Sidebar]
A closer look at our results shows that in April, when the index recorded its
largest one-month drop in the fiscal year (-9.5%), Emerging Markets Growth Fund
held its ground slightly better, declining 8.0%. In December, when the index
posted its biggest one-month increase (+12.7%), the fund outpaced it, rising
18.0%. Our gain for the year came mainly in November and December; during most
of the other 10 months, the share value was either down, up modestly or
virtually flat.
Participating in Strong Up Moves
In a sense, fiscal 2000 was a microcosm of our lifetime record. Since
operations began in 1986, the fund has produced an average annual return of
22.1%, but the advance has been anything but steady. There have been four years
when the share value rose more than 30%, including three years when it gained
more than 40%. During the other years it showed smaller increases or declined.
We mention this because it underscores the importance of maintaining a
long-term perspective. Historically, emerging markets have offered an
opportunity for excellent returns, but they are extremely volatile. Investors
who try to guess when the strong "up" moves are coming run the risk of missing
them. Without full participation in those moves, the results would be
considerably less impressive.
Geographically, Emerging Markets Growth Fund is diversified somewhat similarly
to the EMF Index. However, the make-up of its portfolio differs markedly from
the composition of the index. Although the fund owns shares in nearly 400
companies domiciled in 41 countries, there is a heavy concentration in
companies that our research has identified as superior investment
opportunities. They are, by and large, world-class firms which happen to be
based in developing countries. Many of them either did not exist when the fund
began or were government-controlled entities that have since been privatized
and revitalized.
In fiscal 2000, our results benefited greatly from strong performances by a
number of these holdings, including some of our largest positions. At fiscal
year-end, our 10 largest stocks accounted for 31% of net assets. Nine of the 10
were in the portfolio for the entire year, and six of those nine rose in price
more than 50%. Two of the six - Infosys Technologies and Samsung Electronics -
registered triple-digit gains.
[Begin Sidebar]
Ten Largest Equity Holdings
<TABLE>
<CAPTION>
Percent of Percent of
Net Assets Gain/Loss for
the 12 Months
Ended
6/30/00*
(in U.S.
Dollars)
<S> <C> <C>
Samsung Electronics 7.24% +222.06%
Telefonos de Mexico (Telmex) 6.19 +41.56
Taiwan Semiconductor Manufacturing 5.07 +59.42
Infosys Technologies 2.48 +346.21
Turkiye Is Bankasi 2.27 +20.26
Grupo Televisa 1.89 +53.84
Banco Itau 1.64 +70.99
Yapi ve Kredi Bankasi 1.58 -23.04
Cia. Cervejaria Brahma 1.37 +50.28
Dimension Data Holdings 1.36 -**
</TABLE>
*The percent change reflects the increase or decrease in the market price per
share of respective 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.
** Dimension Data shares were first purchased by the fund in March 2000.
[End Sidebar]
The Benefits of Research
Several adjustments were made in the portfolio during the year. We took profits
in Latin American telecommunications stocks, though we still have some sizable
positions, including Telefonos de Mexico (Telmex). Additionally, during the
fallout from the selloff on the Nasdaq, we added to the fund's technology
investments, chiefly in the Asia-Pacific region. And, for the first time in
several years, we increased our investments in banks based in Asia, principally
in South Korea, Malaysia and India. It is worth recalling that, relative to the
EMF Index, the fund was underrepresented in the Asian banking industry as well
as in the Malaysian market during the mid-to-late '90s, a period when that
market and Asian bank stocks were particularly weak. Recently, Morgan Stanley
Capital International restored Malaysia to the EMF Index after removing it more
than a year earlier when the Malaysian government imposed capital controls.
Additionally, Taiwan's weighting in the index has been increased, and the China
portion has been redefined to incorporate into the index four additional
companies, including China Mobile, that country's leading provider of cellular
telecommunications services.
[Begin Sidebar]
Where The Fund's Assets Are Invested
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
PERCENT OF NET ASSETS MSCI EMF Market
Index /1/ Value
of
Holdings
6/30/98 6/30/99 12/31/99 6/30/00 6/30/00 6/30/00
(in
thousands)
Asia/Pacific
China .7% .4% .6% 1.2% 6.5% $264,195
Hong Kong .7 .7 1.3 1.5 - 332,531
India 5.6 5.5 7.8 8.1 7.5 1,830,256
Indonesia 1.4 3.0 2.8 1.9 1.0 435,272
Malaysia .9 2.2 1.7 2.2/2/ 6.5/2/ 491,609
Pakistan .1 .1 .1 - .3 12,108
Philippines 2.7 2.4 1.4 1.0 .8 224,635
South Korea 2.1 7.9 10.9 15.2 14.0 3,447,198
Sri Lanka .1 - - - .0 3,381
Taiwan 6.5 10.9 9.1 10.0/3/ 12.7/3/ 2,263,040
Thailand .5 .9 .6 .2 1.7 49,781
Vietnam - - - - - 2,051
21.3 34.0 36.3 41.3 51.0 9,356,057
Latin America
Argentina 8.7 4.7 3.1 1.1 1.7 265,748
Brazil 16.1 10.1 9.6 10.7 8.6 2,416,101
Chile 3.2 3.2 1.8 1.0 2.8 224,585
Ecuador .1 - - - - 143
Mexico 10.8 14.4 12.7 13.7 9.3 3,098,365
Panama .7 .1 .1 - - 11,531
Peru 2.0 1.1 1.1 .5 .6 110,891
Republic of Colombia - - - .1 .2 13,815
Venezuela 1.3 .9 .5 .4 .5 90,124
42.9 34.5 28.9 27.5 23.7 6,231,303
Eastern Europe
Bulgaria .2 - - - - 3,843
Czech Republic .3 .6 .5 .5 .6 104,566
Hungary .9 2.3 2.0 1.6 1.0 356,988
Kazakhstan - - - - - 540
Poland 1.4 2.0 1.6 1.9 1.2 419,465
Republic of Croatia .8 .6 .4 .3 - 78,462
Russian 3.8 2.0 1.7 1.9 2.1
Federation/4/
Slovakia .1 - - - - 2,876
Ukraine .1 - - - - 1,441
7.6 7.5 6.2 6.2 4.9 1,389,040
Other Markets
Botswana - - - - - 2,965
Egypt .1 .1 .8 .6 - 130,824
Estonia - .1 .1 - - 10,213
Ghana .2 .1 .1 - - 11,099
Greece 2.1 1.5 1.1 .7 4.3 155,746
Israel - 1.8 2.4 4.2 4.6 954,025
Kenya - - - - - 277
Mauritius .1 - - - - 7,310
Morocco .3 .2 .1 .1 - 28,315
Nigeria - - - .1 - 15,337
Portugal 1.6 .1 .2 .2 - 31,842
South Africa 4.5 5.6 6.5 5.6 8.0 1,272,766
Turkey 6.0 5.2 9.8 7.3 3.4 1,641,557
14.9 14.7 21.1 18.8 20.3 4,262,276
Multinational 2.6 2.6 2.7 2.7 612,360
Other/5/ .5 3.3 2.4 1.5 338,124
Cash & Equivalents 10.2 3.4 2.4 2.0 449,490
TOTAL 100.0% 100.0% 100.0% 100.0% $22,638,650
</TABLE>
/1/Morgan Stanley Capital International Emerging Markets Free (EMF) Index also
includes Jordan (0.1% at 6/30/00 and 12/31/99). A dash indicates that the
market is not included in the index. Source: Morgan Stanley Capital
International Perspective.
/2/In November 1998, Malaysia was removed from the index; in May 2000, it was
re-included at full weight.
/3/In May 2000, Taiwan's weighting in the index was increased from 50% to 65%
of that country's market capitalization.
/4/Includes investments in companies incorporated outside the region that have
significant operations in the region.
/5/Includes stocks in initial period of acquisition. Also may include
investments in markets where the holdings represent a percentage of net assets
of less than 0.05%.
[End Sidebar]
We certainly do not lay claim to infallibility as investors. We have made, and
doubtless will continue to make, our share of mistakes. However, we believe
that the fund's favorable results relative to its benchmark this past year
reflects the deepening of our research effort and the knowledge of companies
and markets that our team of investment professionals has acquired over an
extended period of time. Capital International's investment intelligence
operation has expanded steadily and is approaching a magnitude and an
experience level that could be very difficult for others to duplicate. Some
indication of the scope of these activities can be gleaned from the fact that
we made more than 2,700 research calls in emerging markets during calendar
1999. Many were repeat calls on company officials with whom our analysts have
established solid working relationships over the years. It is noteworthy, too,
that the team of nine portfolio managers making the majority of our buy and
sell decisions includes two who have held this responsibility since 1986.
[Begin Sidebar]
Percent Change In Key Markets/1/
<TABLE>
<CAPTION>
Twelve Months Six Months
Ended 6/30/00 Ended 6/30/00
Expressed Expressed Expressed Expressed
in U.S. in Local in U.S. in Local
Dollars Currency Dollars Currency
<S> <C> <C> <C> <C>
Argentina 3.9% 3.9% -3.4% -3.5%
Brazil (Free)/2/ 40.6 45.0 -0.2 -0.1
Chile 0.1 4.1 -7.3 -5.6
China (Free)/2/ -29.9 -29.6 0.9 1.1
Colombia -32.4 -16.9 -35.2 -25.5
Czech Republic 6.3 12.1 6.2 9.9
Greece -7.0 3.8 -25.7 -20.8
Hungary 12.8 26.6 -7.8 -1.5
India 32.3 36.3 -3.3 -0.8
Indonesia (Free)/2/ -48.2 -34.1 -43.5 -29.9
Israel 60.9 62.1 26.5 25.2
Jordan -14.3 -14.5 -18.4 -18.4
Malaysia (Free)/2/ 25.8 6.9 4.1 4.1
Mexico (Free)/2/ 11.2 16.1 -6.0 -3.0
Pakistan 43.3 45.0 2.3 3.0
Peru -3.9 0.0 -3.1 -3.6
Philippines (Free)/2/ -48.0 -40.9 -35.9 -31.3
Poland 2.0 13.2 1.5 6.8
Russia 40.2 -/3/ -5.6 -/3/
South Africa 2.3 14.9 -15.3 -6.7
South Korea 5.0 1.2 -2.9 -4.4
Sri Lanka 1.5 12.3 -16.1 -6.7
Taiwan 4.4 -0.4 -2.7 -4.4
Thailand (Free)/2/ -40.5 - 36.7 -36.0 -33.2
Turkey 118.0 220.0 -10.2 2.6
Venezuela 12.0 26.0 19.0 25.1
Emerging Markets
Growth Fund 25.6 -3.3
</TABLE>
/1/Including reinvestment. All indexes are compiled by Morgan Stanley Capital
International and are unmanaged.
/2/The fund is invested in the "free" Brazilian, Chinese, Indonesian,
Malaysian, Mexican, Philippine and Thai stock markets, which consist of
securities that can be purchased by investors other than resident nationals.
/3/Index is quoted in U.S. dollars only.
[End Sidebar]
Outlook and Open-End Status
As we move further into the new millennium, our expectation is that many
developing countries will continue to stay on the path of rapid growth and
offer potentially attractive investment opportunities requiring careful
evaluation. We also suspect that the volatility which characterizes our
investment universe is not about to disappear and may not even diminish. Our
intention is to continue researching companies aggressively, paying close
attention to valuations and making every effort to capitalize on periodic price
weakness in the marketplace.
Finally, we might point out that fiscal 2000 saw considerable activity in the
fund's shares. Redemptions and new investments roughly canceled each other out.
Each topped the $2 billion mark, leaving Emerging Markets Growth Fund with a
net inflow of about $30 million for the year. Several of the redemptions were
the result of asset-allocation decisions that called for a reduction in
exposure to emerging markets following the gains that were realized over the
past couple of years. We view the activity in the shares as a further
indication that the conversion to an open-end interval fund is proving
successful; it has facilitated liquidity without adversely affecting the fund's
operations.
We look forward to reporting to you again in another six months.
Sincerely,
/s/ Walter P. Stern
Walter P. Stern
Chairman of the Board
/s/ Nancy Englander
Nancy Englander
President
August 18, 2000
Here are the total returns and average annual compound returns with all
distributions reinvested for periods ended June 30, 2000 - 10 years: +304.47%,
or +15.00% a year; 5 years: +63.70%, or +10.36% a year; 12 months: +25.63%.
Figures shown are past results and are not predictive of future results. Share
price and return will vary, so you may lose money. Investing for short periods
makes losses more likely. Investments are not FDIC-insured, nor are they
deposits of or guaranteed by a bank or any other entity. Investing outside the
United States is subject to additional risks, such as currency fluctuations and
political instability, which are detailed in the prospectus.
The Investment Landscape
We believe that good companies are good companies wherever they may be based.
The geographic concentrations of assets found in Emerging Markets Growth Fund's
portfolio rarely reflect any determination on our part to invest more in one
country or region. More often, they are the by-product of buy and sell
decisions made on a stock-by-stock basis, based on intensive, proprietary
research. While the emphasis of that research is on companies, EMGF's portfolio
managers and analysts also keep a close eye on political and macroeconomic
considerations that can affect our holdings. Here is a look at the investment
landscape in the fund's five largest areas of concentration on June 30. The
five account for more than half of net assets. (Percentage changes for markets
and stock prices are in U.S. dollars.)
South Korea (15.2% of net assets)
The June summit between the leaders of North and South Korea generated bold
headlines and speculation about possible reunification - a development that
could importantly alter the balance of power in East Asia. It also could prove
very costly for South Korea, by far the wealthier of the two countries. The
reality is that political unification is unlikely anytime soon. A number of
small steps may be taken in coming months, however, to maintain the spirit of
the summit and improve relations between the two countries, who have been sworn
enemies for half a century.
Meanwhile, South Korea's economy continues to rebound. It grew by almost 11% in
calendar 1999 and should expand by another 8% or so this year. Corporate
restructurings and takeovers by foreign companies have been moving forward.
There is some concern that a revamping of the country's financial sector could
be hampered by fragile investment trust corporations (ITCs), which hold large
amounts of bonds issued by firms that have gone bankrupt.
Recently, the balance sheets of several of the better-managed South Korean
banks have shown good improvement. Over the past few months, taking advantage
of price weakness, we have made significant investments in that industry for
the first time since the early 1990s. During the drop of more than 50% in the
Kosdaq (Korea's version of the Nasdaq) in the final half of the fiscal year, we
also added to our holdings of quality technology stocks.
For the 12 months, the South Korean market registered a 5% gain (1% in won).
Our largest investment there, Samsung Electronics, has become the biggest
single holding in the portfolio, representing just over 7% of net assets. This
stock soared 222% for the fiscal year. A diversified electronics manufacturer
with global production capability in CDMA wireless handsets, dynamic random
access memory (DRAM) chips and other computer components, Samsung has undergone
a restructuring of its management and work force that in many ways exemplifies
the positive changes taking place throughout much of South Korea's economy.
Mexico (13.7% of net assets)
The July election that elevated Vicente Fox to the presidency ended over 70
years of rule by the PRI and signaled the most important shift in power since
the Mexican Revolution in the early part of the 20th century. The civility and
calm accompanying the victory by Fox's National Action Party came as a relief
to those who have grown accustomed to civil unrest and currency crises around
election time.
The election, which took place two days after the close of the fund's fiscal
year, was followed by a rally in the stock market and a strengthening of the
peso. At the same time, there is uncertainty about what might occur on the
political scene or in the markets during the long transition before Fox takes
office in December. His ability to govern effectively with a divided Congress
is also obviously still in question.
A former president of Coca-Cola's Mexican subsidiary, the Harvard-educated Fox
is expected to lead a market-friendly, pragmatic administration. He inherits a
strong economy that is growing rapidly and causing some uneasiness about
inflation.
The Mexican stock market gained 11% in fiscal 2000 (16% in pesos). A majority
of the fund's 21 holdings were on the plus side for the year. Telmex, our
largest Mexican holding (and the second-largest position in the portfolio) rose
42%. Another large investment that did well was Grupo Televisa, which went up
54%; Televisa is Mexico's leading media company and the world's largest
producer of Spanish-language broadcasts.
Brazil (10.7% of net assets)
Brazil, emerging from recession, continues to make slow but steady progress.
The country appears to have captured the benefits of the February 1999
devaluation without experiencing significant ill effects. Inflation remains
relatively moderate. Interest rates are lower than they have been in several
years. The trade picture is improving. Direct foreign investment is at a record
high. After growing a modest 1% last year, the economy appears headed for about
a 4% expansion in calendar 2000.
Whether the recovery is sustainable has yet to be determined. Brazil could be
on the verge of faster growth, but it has a history of periodic bursts of
inflation and currency instability. It still must find a way to accelerate the
pace of privatization in the energy and utility sectors and deal with a
bankrupt pension system and a costly government bureaucracy. However, for the
moment, nearly everything appears to be moving in the right direction, and the
country is being cited as an example of how to make fiscal reform gradually
succeed in a developing country.
The Brazilian stock market rose 41% (45% in local currency) during the 12
months ended June 30. The fund currently owns shares in 27 Brazilian companies,
most of which recorded gains for the year. Our investments are concentrated in
two industries: telecommunications- where we hold shares in wireless, cellular
and long-distance firms spun off from Telecomunicacoes Brasileiras (Telebras) -
and banking. The largest bank holdings are Banco Itau and Unibanco; those two
stocks went up 71% and 19%, respectively, during the year.
In recent months, we have added to our investments in several carefully
selected issues, including Petrobras, a partially denationalized oil company
that has substantial assets and deep-water reserves. That stock went up 102%
during the fiscal year. Another large holding is Cervejaria Brahma, Brazil's
largest brewery, which is currently involved in merger activity; it rose 50%
for the year.
Taiwan (10.0% of net assets)
A fair amount of rather muted and somewhat predictable saber rattling
surrounded the election of Chen Shui-bian, the first Taiwanese leader in more
than 50 years from outside the Nationalist Party. Mr. Chen's victory did not
provoke military action from China, as Beijing had repeatedly threatened.
Instead, it was followed by post-election verbal jousting and further debate
over the definition of the term "one China." All signs point to a continuation
of the stalemate that has prevented the two sides from settling their
differences.
The Taiwanese economy keeps rolling along. So far in calendar 2000, gross
domestic product appears to be growing at a rate of about 7%, with only
moderate inflation. The Taiwanese stock market, dominated by technology issues,
fell sharply in reaction to the slump in U.S. tech stocks before recovering to
some extent in June. It ended the 12 months up 4% in U.S. dollars, but down
0.4% in local currency.
Taiwan continues to be a good example of a country where our investment
strategy is based chiefly on the global competitiveness and prospects for the
companies in which we invest rather than on macroeconomic or political
considerations. Our holdings there, rather than being widely diversified,
remain concentrated in the semiconductor industry. The largest single position
(and the third largest in the portfolio) is Taiwan Semiconductor Manufacturing,
the world's biggest integrated circuit foundry. This company has become very
dominant in its field; in fiscal 2000, the stock rose 59%.
India (8.1% of net assets)
The Indian market was extremely volatile during the 12 months ended June 30. A
buying frenzy started in the October-December quarter, followed by a steep drop
in the second half of the fiscal year. This decline was a reaction to the
global selloff in technology shares combined with apprehension about rising
interest rates. In June, the market rallied, finishing the fiscal year up 32%
(36% in local currency).
India's political and economic landscape generally remained stable over the
course of the year. A majority attained by the BJP-led government in
parliamentary elections raised hopes for a renewed commitment to economic
reform and further privatization of government-dominated industries. However,
several recent state elections point to a level of disenchantment with the BJP
for having failed to deliver on its promise to accelerate public spending and
infrastructure development.
The Indian economy remains on a fairly sound footing. Gross domestic product is
growing at about a 6% rate, with inflation of around 5%. The monsoons appear to
be arriving on schedule, suggesting strong agricultural output and reasonably
stable food prices during the coming year. Consumer confidence has improved.
Foreign investment has increased, particularly among pharmaceutical and
consumer goods companies and firms searching for low-cost outsourcing of
technology-related products.
Emerging Markets Growth Fund owns shares in 46 Indian companies. Our two
largest positions are Infosys, which sells low-cost software to corporations
around the world, and Hindustan Lever, India's largest consumer products
company. Infosys rose 346% during the fiscal year; Hindustan Lever was up 16%.
About the Fund, its Adviser & its Portfolio
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 based in developing countries. The premise
behind the formation of the fund was that rapid growth in these countries could
create 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 by the IFC from a number of global investment firms to
manage EMGF. 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 400 times that amount of assets, together with over 700
shareholders - many of whom have been with us for quite a few years - and a
portfolio of securities representing nearly 400 companies based in Latin
America, Eastern Europe, the Mediterranean, the Asia-Pacific region and Africa.
Initially, the fund's investments were primarily in companies domiciled in
Southeast Asia and involved in industries important to a developing country's
infrastructure. While the fund still holds a number of these investments, over
the years the portfolio has become increasingly global, and within Asia there
has been a shift toward manufacturing-based businesses, quite a few of which
are found in countries in the Northeast that have developed a strong industrial
base.
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. Its investment management
affiliates employ a value-oriented, research-driven approach. They maintain a
global investment intelligence network that continues to grow and currently
employs more than 100 investment professionals based on three continents. These
professionals include analysts and portfolio managers, born in over 30
countries, who speak a variety of languages. They travel millions of miles each
year, keeping a close watch on industry trends and government actions and
scrutinizing thousands of companies, including firms based in less-developed
countries.
As EMGF has grown, its adviser has devoted increased resources to the task of
evaluating and managing investments in emerging markets. Currently the
organization has more than 30 analysts covering these markets, compared with
four in 1986; these analysts also manage a portion of the fund. The bulk of its
assets are managed by nine portfolio managers, compared with two in 1986.
During the mid-1990s, an extremely trying period in emerging markets, this team
of investment professionals and analysts remained essentially intact.
The Capital organization's 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.
<TABLE>
EMERGING MARKETS GROWTH FUND
INVESTMENT PORTFOLIO,
June 30, 2000
<S> <C> <C> <C> <C> <C>
Percent
Equity Securities of
Common Preferred Convertible Net
INDUSTRY DIVERSIVERSIFICATION Stocks Stocks Bonds Bonds Assets
Electronic Components 0.18% 0.17% -- -- 18.18%
Diversified
Telecommunication Services 12.64 0.55 -- 0.05% 13.24
Banking 10.40 1.80 -- -- 12.20
Beverages & Tobacco 4.52 1.75 -- -- 6.27
Wireless Telecommunication
Services 3.27 2.85 -- 0.02 6.14
IT & Consulting Services 5.61 0.00 -- -- 5.61
Energy Sources 3.18 0.73 0.10% 0.00 4.01
Other Industries 29.63 1.68 0.32 0.73 50.36
87.26 9.53 0.42 0.80 98.01
Short Term Securities 5.09
Excess of payables over (3.10)
cash and receivables
Net Assets 100.00%
</TABLE>
<TABLE>
EMERGING MARKETS GROWTH FUND
INVESTMENT PORTFOLIO, June 30, 2000
Number of
Shares
or Market Percent
Principal Value Of Net
EQUITY SECURITIES Amount (000) Assets
(Common and preferred stocks and convertible debentures)
-------------------------------------------- -------- -------- ------
<S> <C> <C> <C>
ARGENTINA - 1.09%
Banco de Galicia y Buenos Aires SA, Class B 3,469,530 $13,018
Banco de Galicia y Buenos Aires SA, Class B (ADR) 3,227,275 47,804 0.27%
Banco Frances del Rio de la Plata SA 743,100 5,465
Banco Frances del Rio de la Plata SA (ADR) 440,210 9,520 .07
BI SA (acquired 10/21/93, cost:$5,699,000)(1) 6,130,000 6,075 .03
CEI Citicorp Holdings SA, Class B (2) 120,770 483 .00
Hidroneuquen SA (acquired 11/11/93, cost: $29,111,000)(1)(2)(3) 28,022,311 14,028 .06
IRSA Inversiones y Representaciones SA 1,538,644 3,541
IRSA Inversiones y Representaciones SA (GDR) 694,668 15,891 .08
Nortel Inversora SA, Class A, preferred (ADR) 625,231 7,940
(acquired 11/24/92, cost: $4,136,000)(1)
Nortel Inversora SA, Class B, preferred (ADR) 982,440 18,666 .12
Quilmes Industrial SA, nonvoting preferred (ADR) 2,782,400 30,954 .14
Telecom Argentina STET-France Telecom SA, Class B 2,830,865 15,635
Telecom Argentina STET-France Telecom SA, Class B (ADR) 2,066,800 56,837 .32
-------- ------
245,857 1.09
-------- ------
BOTSWANA - 0.01%
Sechaba Breweries Ltd. 3,577,700 2,965 .01
-------- ------
BRAZIL - 10.49%
Aracruz Celulos SA, preferred nominative (ADR) 528,000 10,197 .05
Banco Itau SA, preferred nominative 4,222,711,000 371,421 1.64
Banco Nacional SA, ordinary nominative (2) 2,500,000 -
Banco Nacional SA, preferred nominative (2) 215,940,814 - -
Banco Real de Investimento SA, preferred nominative 4,623,000 8,466 .04
Bompreco SA Supermercados do Nordeste, 518,650 4,668 .02
preferred nominative (GDR) (2)
Cia. Cervejaria Brahma, ordinary nominative (ADR) 11,224 136
Cia. Cervejaria Brahma, preferred nominative (ADR) 18,316,360 311,378 1.37
Cia. de Tecidos Norte de Minas - COTEMINAS, 2,777,384 162
ordinary nominative
Cia. de Tecidos Norte de Minas - COTEMINAS, ordinary 535,000 1,538
nominative (GDR)
Cia. de Tecidos Norte de Minas - COTEMINAS, 98,900,466 8,425 .04
preferred nominative
Cia. Energetica de Minas Gerais - CEMIG, preferred 2,367,582 40,841 .18
nominative (ADR)
Cia. Vale do Rio Doce, ordinary nominative 861,700 21,514
Cia. Vale do Rio Doce, preferred nominative (ADR) 5,658,437 158,436 .79
Consorcio Real Brasileiro de Administracao SA, 1,091,000 1,332 .01
Class F, preferred nominative
Embratel Participacoes SA, preferred nominative (ADR) 3,579,415 84,564 .37
GP Capital Partners, LP (acquired 1/28/94, 27,000 12,895 .06
cost: $17,922,000)(1)
Itausa - Investimentos Itau SA, preferred nominative 91,501,372 88,861 .39
Petroleo Brasileiro SA - PETROBRAS, ordinary nominative 2,169,310 63,779
Petroleo Brasileiro SA - PETROBRAS, preferred 5,410,780 163,000 1.00
nominative (ADR)
Realpar Participacoes SA, Class A, preferred nominative 3,000 5 .00
REAL SA Participacoes e Administracao, Class A, 3,000 3 .00
preferred nominative
Souza Cruz SA, ordinary nominative 1,044,600 6,255 .03
Tele Celular Sul Participacoes SA, ordinary nominative 154,223,600 544
Tele Celular Sul Participacoes SA, preferred nominative (ADR) 2,007,900 90,858 .40
Tele Centro Oeste Celular Participacoes SA, ordinary nominative 3,092,000 12
Tele Centro Oeste Celular Participacoes SA, 6,856,325 82,276 .36
preferred nominative (ADR)
Tele Centro Sul Participacoes SA, preferred nominative (ADR) 94,100 6,875 .03
Telecomunicacoes Brasileiras SA, preferred nominative (ADR) 1,273,000 123,640 .55
Tele Leste Celular Participacoes SA, ordinary nominative (2) 3,435,300 3
Tele Leste Celular Participacoes SA, preferred nominative (ADR) 281,647 12,463 .06
Telemig Celular Participacoes SA, ordinary nominative 9,071,600 29
Telemig Celular Participacoes SA, preferred nominative (ADR) 1,000,858 71,561 .36
Telemig Celular Participacoes SA, Class C, preferred nominative 385,295,000 9,836
Tele Nordeste Celular Participacoes SA, ordinary nominative (2) 3,092,000 8
Tele Nordeste Celular Participacoes SA, preferred nominative (ADR) 771,874 53,452 .24
Tele Norte Celular Participacoes SA, ordinary nominative 8,728,300 8
Tele Norte Celular Participacoes SA, preferred nominative (ADR) 385,342 19,556 .09
Telesp Celular Participacoes SA, preferred nominative 3,368,784,393 60,945
Telesp Celular Participacoes SA, preferred nominative (ADR) 5,447,130 244,440 1.35
Unibanco-Uniao de Bancos Brasileiros SA, units 1,302,252,000 75,873
Unibanco-Uniao de Bancos Brasileiros SA, units (GDS) 5,711,650 164,210 1.06
-------- ------
2,374,465 10.49
-------- ------
CHILE - 0.99%
Antofagasta PLC 4,905,330 26,389 .12
Cia Cervecerias Unidas SA (ADS) 872,900 19,804 .09
Compania de Telecomunicaciones de Chile SA (ADR) 1,236,461 22,411 .10
Distribucion y Servicio D&S SA (ADR) 1,538,000 26,723 .12
Embotelladora Andina SA, Class A, preferred nominative(ADR) 2,868,050 33,700
Embotelladora Andina SA, Class B, preferred nominative(ADR) 2,067,200 19,768 .23
Empresa Nacional de Electricidad SA (ADR) (2) 4,998,718 55,298 .24
Linea Aerea Nacional Chile SA (ADS) 1,019,700 7,393 .03
Santa Isabel SA (ADR)(3) 1,186,100 9,118 .04
Sociedad Quimica y Minera de Chile SA, Class A (ADR) 9,825 216
Sociedad Quimica y Minera de Chile SA, Class B (ADR) 169,200 3,765 .02
-------- ------
224,585 0.99
-------- ------
CHINA - 1.17%
AsiaInfo Holdings, Inc. (2) 546,100 24,404 .11
China Eastern Airlines Corp. Ltd., Class H (2) 41,520,000 5,273
China Eastern Airlines Corp. Ltd., Class H (ADR) (2) 175,700 2,185 .03
China Mobile (Hong Kong) Ltd.(2) 21,035,900 185,522
China Mobile (Hong Kong) Ltd. (ADR)(2) 60,500 10,758 .87
Huaneng Power International, Inc., Class N (ADR) 698,700 9,301 .04
Jiangsu Expressway Co. Ltd.(3) 91,034,000 14,130 .06
Shandong International Power Development Co. Ltd. (Hong Kong) 85,561,000 12,622 .06
-------- ------
264,195 1.17
-------- ------
COLOMBIA - 0.06%
Bancolombia SA, preferred nominative (2) 27,088,700 13,815 .06
-------- ------
REPUBLIC OF CROATIA - 0.35%
PLIVA DD (GDR) 7,544,396 78,462 .35
-------- ------
CZECH REPUBLIC - 0.46%
CESKE RADIOKOMUNIKACE AS (GDR) (2) 1,178,300 52,435 .23
CESKE TELECOM, AS (2) 3,054,140 51,474
CESKY TELECOM, AS (GDR) (2) 39,200 657 .23
-------- ------
104,566 0.46
-------- ------
ECUADOR - 0.00%
La Cemento Nacional SA (GDR) 2,376 143 .00
-------- ------
EGYPT - 0.58%
AL-Ahram Beverages Co. (GDR)(2)(3) 1,049,600 18,001 .08
Mobinil - Egyptian Mobile Services (2) 3,459,000 112,823 .50
-------- ------
130,824 0.58
-------- ------
ESTONIA - 0.05%
AS Eesti Telekom (GDR) 509,400 10,213 .05
-------- ------
GHANA - 0.05%
Ashanti Goldfields Co. Ltd. (2) 698,714 1,223
Ashanti Goldfields Co. Ltd. (GDR) (2) 129,947 227
Ashanti Goldfields Co. Ltd. 5.50% exchangeable note March 15, 2003 $15,195,800 9,649 .05
-------- ------
11,099 0.05
-------- ------
GREECE - 0.69%
Aluminium de Grece SAIC 61,640 2,328 .01
Hellenic Bottling Co. SA 3,415,400 54,320 .24
Hellenic Telecommunications Organization SA (ADR) 5,947,600 72,486 .32
Panafon Hellenic Telecommunications Co. SA 198,600 2,260 .01
Stet Hellas Telecommunications SA (ADR) (2) 1,225,250 24,352 .11
-------- ------
155,746 0.69
-------- ------
HONG KONG - 1.47%
China Resources Enterprise, Ltd. 44,704,800 53,620 .24
COSCO Pacific Ltd. 32,447,000 25,598 .11
First Pacific Co. Ltd. 104,711,339 35,596 .16
Legend Holdings Ltd. 203,908,400 197,489 .87
New World China Land Ltd. (Cayman Islands) (2) 36,886,400 10,884 .05
Skyworth Digital Holdings Ltd. (2) 50,234,000 9,344 .04
-------- ------
332,531 1.47
-------- ------
HUNGARY - 1.58%
Gedeon Richter Ltd. 607,200 32,767 .15
Graboplast Textil- es Muborgyarto Rt (2) 141,200 1,426 .01
Magyar Tavkozlesi Rt. 27,256,660 189,741
Magyar Tavkozlesi Rt. (ADR) 1,332,900 45,902 1.04
MOL Magyar Olaj- es Gazipari Rt.(3) 5,587,417 77,073
MOL Magyar Olaj- es Gazipari Rt. (GDR)(3) 725,100 10,079 .38
-------- ------
356,988 1.58
-------- ------
INDIA - 8.08%
ABB ALSTOM POWER India Ltd. (formerly Asea Brown 513,950 415 .00
Boveri Management Ltd.)(2)
Asea Brown Boveri Ltd. 175,650 811 .00
Asian Paints (India) Ltd. 231,300 2,075 .01
Bajaj Auto Ltd. 4,808,150 38,390
Bajaj Auto Ltd. (GDR) 436,800 4,008 .19
Bharat Petroleum Corp. Ltd. 5,017,700 21,696 .10
Cadbury India Ltd. 702,956 9,050 .04
Carrier Aircon Ltd. 911,500 1,687 .01
Castrol India Ltd.(3) 6,280,109 42,715 .19
Credit Rating Information Services of India 15,000 91 .00
Cummins India Ltd. 1,850,000 18,631 .08
Essar Steel Ltd. (2) 20 - -
Essel Packaging Ltd. 17,000 120 .00
Grasim Industries Ltd. 62 - -
HCL Technologies America, Inc. (2) 200,000 5,779 .02
HDFC Bank Ltd. 5,335,452 30,422 .13
Hindustan Lever Ltd. 4,197,800 267,963 1.18
Hindustan Petroleum Corp. Ltd. 1,036,290 2,852 .01
Housing Development Finance Corp. Ltd 2,943,000 36,890 .16
ICICI Ltd. 5,628,330 15,831 .07
Indian Rayon and Industries Ltd. 943,875 1,262
Indian Rayon and Industries Ltd. (GDR) 384,200 615 .01
Infosys Technologies Ltd. 2,988,080 558,758
Infosys Technologies Ltd. (ADR) 13,000 2,304 2.48
Ispat Industries Ltd. 3.00% convertible Eurobond April 1, 2001 $3,499,000 1,435 .01
I.T.C. Ltd. 2,774,547 49,270
I.T.C. Ltd. (GDR) 8,300 160 .22
Mahanagar Telephone Nigam Ltd. 10,092,100 48,548
Mahanagar Telephone Nigam Ltd. (GDR) 730,250 7668 .25
Mahindra & Mahindra Ltd. 2,505,516 11,884
Mahindra & Mahindra Ltd. (GDR) 1,013,566 4,688 .07
Master Gain Scheme (2) 3,700 1 .00
Max India Ltd. 84,896 410
Max India Ltd. 12.50% nonconvertible debenture March 2, 2004 (2) INR41,957 205 .00
Motor Industries Co. Ltd. 102,780 8,411 .04
Nicholas Piramal India Ltd. (3) 1,870,556 16,353 .07
NIIT Ltd. 658,000 32,325 .14
Ranbaxy Laboratories Ltd. 2,335,900 30,377
Ranbaxy Laboratories Ltd. (GDR) 1,158,950 18,833 .22
Raymond Woollen Mills Ltd. 200 - -
Rediff.com India Ltd. (ADR) (2) 337,500 4,725 .02
Reliance Industries Ltd. 12,395,133 95,048
Reliance Industries Ltd. (GDR) 713,450 15,161 .49
Satyam Computer Services Ltd. 346,500 23,152 .10
SET India Ltd.(acquired 5/15/00, cost: $34,131,000)(1)(2) 106,250 33,543 .15
SET Satellite(Singapore) Private Ltd.(acquired 5/15/00, 2,118,490 71,397 .32
cost: $72,434,000)(1)(2)
SmithKline Beecham Corp. 1,262,700 9,691 .04
State Bank of India 10,132,500 51,742
State Bank of India (GDR) 2,600 26 .23
Tata Engineering and Locomotive Co. Ltd. 77,400 214 .00
Tata Infotech Ltd. 293,998 1,902 .01
TVS-Suzuki Ltd. 406,950 2,312 .01
United Phosphorus Ltd. 300 - -
Videsh Sanchar Nigam Ltd. 334,204 9,065
Videsh Sanchar Nigam Ltd. (GDR) 140,050 2,206 .05
Wipro Ltd. 2,156,520 140,222 .62
Zee Telefilms Ltd. 7,589,600 76,917 .34
-------- ------
1,830,256 8.08
-------- ------
INDONESIA - 1.86%
APP Finance (VI) Mauritius Ltd. 0% convertible $38,000 6
preferred bond November 18, 2012 (2)
APP Finance (VII) Mauritius Ltd. 3.50% convertible bond $6,180,000 4,527
April 30, 2003 (acquired 4/23/98, cost: $6,180,000) (1)
APP Finance (VII) Mauritius Ltd. 3.50% convertible $88,000 64
bond April 30, 2003
APP Global Finance (V) Ltd. 1.75% convertible bond $150,000 183
July 1, 2000 (acquired 7/30/99, cost: $147,000) (1)
APP Global Finance (V) Ltd. 1.75% convertible bond July 1, 2000 $142,000 173
Asia Pulp & Paper Co. Ltd (ADR) (2) 12,114,900 61,332
Asia Pulp & Paper Co. Ltd. (ADR), warrants, 554,860 9 .29
expire July 27, 2000 (2)
PT Astra International (2) 108,212,800 34,029 .15
Gulf Indonesia Resources Ltd. (2) 2,626,200 21,010 .09
PT Hanjaya Mandala Sampoerna Tbk (3) 49,628,500 72,073 .32
PT Indah Kiat Pulp & Paper Corp. Tbk(2)(3) 266,262,100 54,044 .24
PT Indofood Sukses Makmur Tbk(2)(3) 140,830,900 76,897 .34
PT Indo-Rama Synthetics (2)(3) 33,011,900 3,209 .01
PT Mustika Ratu 320,000 64 .00
PT Pabrik Kertas Tjiwi Kimia (2) 20,961,272 3,476
PT Pabrik Kertas Tjiwi Kimia, warrants, expire July 15, 2002 (2) 410,175 28 .02
Perusahaan Perseroan (Persero) PT Telekomunikasi 255,224,040 89,744
Indonesia Tbk., Class B
Perusahaan Perseroan (Persero) PT Telekomunikasi 116,804 810 .40
Indonesia Tbk., Class B (ADR)
-------- ------
421,678 1.86
-------- ------
ISRAEL - 4.21%
AudioCodes Ltd. (2) 666,400 79,968 .35
BackWeb Technologies Ltd. (2) 95,200 2,178 .01
Bank Hapoalim Ltd. 20,855,100 60,550 .27
Bank Leumi le-Israel B.M. 59,794,500 123,607 .55
"Bezeq" The Israel Telecommunication Corp. Ltd. 3,635,100 20,279 .09
Check Point Software Technologies Ltd. (2) 965,000 204,339 .90
DSP Group, Inc. (USA) (2) 776,200 43,467 .19
ECI Telecom Ltd. 763,300 27,288 .12
First International Bank of Israel Ltd. - (1) 2,967,783 4,330
First International Bank of Israel Ltd. - (5) 1,489,600 10,856 .07
Galileo Technology Ltd.(2)(3) 2,809,400 60,402 .27
Matav-Cable Systems Media Ltd. 543,400 10,953
Matav-Cable Systems Media Ltd. (ADR) 244,575 9,798 .09
Metalink Ltd.(2)(3) 992,200 29,394 .13
Nova Measuring Instruments LTD. (2) 586,000 9,413 .04
Orbotech Ltd.(2)(3) 1,525,000 141,634 .63
Partner Communications Co. Ltd (ADR) (2) 920,000 8,740 .04
RADVision Ltd. (2) 406,800 11,365 .05
Sapiens International Corp. NV(2)(3) 1,629,000 10,283 .04
Tower Semiconductor Ltd.(2)(3) 1,197,900 39,081 .17
Vyyo Inc. (2) 756,200 20,417 .09
Zoran Corp. (2) 389,500 25,683 .11
-------- ------
954,025 4.21
-------- ------
KAZAKHSTAN - 0.00%
JSC Kazkommertsbank (ADR) (acquired 9/10/97, 70,700 540 .00
cost: $1,466,000)(1)(2)
-------- ------
KENYA - 0.00%
Kenya Commercial Bank Ltd.(2) 768,000 277 .00
-------- ------
MALAYSIA - 2.17%
Amway (Malaysia) Holdings Bhd. 1,969,200 6,374 .03
Commerce Asset-Holding Bhd. 27,700,000 80,184
Commerce Asset-Holding Bhd., warrants, expire March 16, 2002 (2) 2,807,000 2,896 .37
Guinness Anchor Bhd. 2,152,000 2,016 .01
Hap Seng Consolidated Bhd. 9,788,100 7,676 .03
IJM Corp. Bhd. 12,162,714 11,331 .05
IOI Corp. Bhd. 36,444,500 28,676 .12
Malayan Banking Bhd. 17,280,000 70,029 .31
Malaysian Pacific Industries Bhd. 4,104,800 42,128 .19
Nestle (Malaysia) Sdn. Bhd. 5,548,100 25,696 .11
Oriental Holdings Bhd. 5,522,820 11,627 .05
Resorts World Bhd. 3,761,000 10,293 .04
RHB Capital Bhd. 8,355,000 9,059 .04
Road Builder (M) Holdings Bhd. 5,888,000 6,508 .03
Rothmans of Pall Mall (Malaysia) Bhd. 5,519,500 45,028 .20
Sime Darby Bhd. 29,595,000 38,006 .17
Star Publications (Malaysia) Bhd. 2,365,000 8,029 .04
Tanjong PLC 7,849,500 18,797 .08
Telekom Malaysia Bhd. 6,637,000 22,880 .10
UMW Holdings Bhd. 6,475,859 13,974
UMW Holdings Bhd., warrants, expire January 26, 2000 (2) 574,819 365 .06
Warisan TC Holdings Bhd. 189,500 109 .00
YTL Corp. Bhd. 19,739,080 26,232
YTL Corp. Bhd., warrants, June 26, 2009 (2) 5,799,770 2,259 .13
YTL Power International Bhd. 2,459,400 1,437 .01
-------- ------
491,609 2.17
-------- ------
MAURITIUS - 0.03%
State Bank of Mauritius 10,927,000 7,310 .03
-------- ------
MEXICO - 13.55%
Apasco, SA de CV 9,567,645 55,172 .24
Carso Global Telecom, SA de CV, ordinary 56,850,000 163,332 .72
participation certificates (2)
Cemex, SA de CV 26,858,651 125,960
Cemex, SA de CV, ordinary participation certificates, units 7,692,458 36,076
Cemex, SA de CV, warrants, expire December 13, 2002 (2) 852,254 435 .72
Coca-Cola FEMSA, SA de CV, Class L (ADR) 3,069,400 57,935 .26
Consorcio International Hospital, SA de CV, convertible preferred 23,970 3,254 .01
(acquired 9/25/97, cost: $4,827,000)(1) (2)
Controladora Comercial Mexicana, SA de CV, units 28,172,870 26,453 .12
Corp. Interamericana de Entretenimiento, SA de CV, Class B (2) 5,455,700 21,605 .10
Fomento Economico Mexicano, SA de CV 7,552,600 32,568
Fomento Economico Mexicano, SA de CV (ADR) 5,052,380 217,568 1.10
Grupo Carso, SA de CV, Class A, ordinary 1,837,800 6,462 .03
participation certificates (2)
Grupo Financiero Bancomer, SA de CV, Series L2, 25.387% MXN5,750,000 599 .00
convertible subordinated debentures May 16, 2002 (4)
Grupo Financiero BBV Probursa, SA de CV, Class B (2) 3,934,731 418 .00
Grupo Industrial Bimbo, SA de CV 12,383,200 19,640 .09
Grupo Industrial Maseca, SA de CV, Class B (ADR) 281,900 2,026 .01
Grupo Mexico, SA de CV, Class B (2) 2,617,300 7,306 .03
Grupo Televisa, SA, ordinary participation certificates (2) 2,950,000 10,177
Grupo Televisa, SA, ordinary participation 6,074,419 418,755 1.89
certificates (ADR) (2)
Industrias Penoles, SA de CV 906,200 1,485 .01
Kimberly-Clark de Mexico, SA de CV, ordinary 41,064,100 116,931 .52
participation certificates (2)
Pepsi-Gemex, SA de CV (GDR), ordinary participation 898,100 3,985 .02
certificates (2)
Telefonos de Mexico, SA de CV, Class A 18,275,000 52,784
Telefonos de Mexico, SA de CV, Class A (ADR) 142,000 391
Telefonos de Mexico, SA de CV, Class L 27,412,500 78,477
Telefonos de Mexico, SA de CV, Class L (ADR) 22,255,200 1,271,328 6.19
TV Azteca, SA de CV (ADR) 3,279,500 43,248
TV Azteca, SA de CV, ordinary participation certificates 8,205,424 6,683 .22
Wal-Mart de Mexico, SA de CV, Class C (formerly 38,913,634 89,559
Cifra, SA de CV) (2)(3)
Wal-Mart de Mexico, SA de CV, Class V (formerly 67,348,691 157,752
Cifra, SA de CV) (2)(3)
Wal-Mart de Mexico, SA de CV, Class V (ADR) 1,701,712 39,565 1.27
(formerly Cifra, SA de CV) (2)(3)
-------- ------
3,067,929 13.55
-------- ------
MOROCCO - 0.12%
Banque Commerciale du Maroc 35,443 3,217 .01
Cimenterie de l'Oriental, Class A 100,641 9,966 .04
ONA SA 56,000 6,191 .03
Societe des Brasseries du Maroc 23,432 3,638 .02
Wafabank, Class A 58,000 5,303 .02
-------- ------
28,315 0.12
-------- ------
NIGERIA - 0.07%
United Bank for Africa (GDR)(3) 425,000 15,337 .07
-------- ------
PAKISTAN - 0.05%
Chakwal Cement Co. Ltd. (GDR) (2) 891,111 - -
Engro Chemical Pakistan Ltd. 3,010,668 3,395 .01
Hub Power Co. Ltd. (GDR) (2) 553,328 3,597 .02
Pakistan Telecommunication Corp. (GDR) 104,400 5,116 .02
-------- ------
12,108 0.05
-------- ------
PERU - 0.49%
Banco Continental 108,574 52 .00
Cementos Lima SA 721,209 8,634 .04
Cia. de Minas Buenaventura SA, Class B 995,485 8,675
Cia. de Minas Buenaventura SA, Class B (ADR) 1,105,867 19,145 .12
Credicorp Ltd. (3) 6,400,762 57,607 .26
Minsur SA-Trabajo 2,930,530 4,454 .02
Tecsur SA (2) 720,734 161 .00
Telefonica del Peru SA, Class B (ADR) 1,069,300 12,163 .05
-------- ------
110,891 0.49
-------- ------
PHILIPPINES - 0.99%
Ayala Corp. 80,877,409 14,995
Ayala Corp., Class B (GDS) 324,300 541 .07
Ayala Land, Inc. 243,453,574 31,031
Ayala Land, Inc. 6.00% convertible bond March 19, 2002 PHP260,000,000 4,881 .16
Bacnotan Consolidated Industries, Inc. 5.50% convertible $800 - -
bond June 21, 2004 (acquired 6/8/94, cost: less than $1,000) (1)
Bank of the Philippine Islands 27,573,780 49,844 .22
Bayan Telecommunications Holdings Corp., Class A 724,790 840
(acquired 2/12/98, cost: $1,850,000)(1)(2)
Bayan Telecommunications Holdings Corp., Class B 241,431 280
(acquired 2/12/98, cost: $616,000)(1)(2)
Bayan Telecommunications Holdings Corp., convertible 180,000 3,958 .02
preferred (acquired 12/22/97, cost:$9,000,000)(1)(2)
Benpres Holdings Corp. (2) 57,120,300 5,494
Benpres Holdings Corp. (GDR) (2) 6,829,554 12,293 .08
Fortune Cement Corp. (2) 19,950,000 176 .00
HI Cement Corp. (2) 50,563,500 950
HI Cement Corp., convertible bond May 27, 2000 (4) PHP33,052,000 651 .01
International Container Terminal Services, Inc. (2) 19,533,588 579 .00
Manila Electric Co., Class B 2,428,300 3,574
Manilla Electric Co. (GDR) 1,025,817 7,459 .05
MUSIC Corp.(2)(3) 27,281,000 3,161 .01
Philippine Airlines Inc. (2) 68,631,450 - -
Philippine Long Distance Telephone Co. 1,572,910 28,250
Philippine Long Distance Telephone Co. (ADR) 1,334,716 23,691
Philippine Long Distance Telephone Co., convertible 50,664 1,862 .24
preferred, Series III (GDS)
SM Prime Holdings, Inc. 211,597,900 25,500 .11
Universal Robina Corp. 37,650,000 4,625 .02
-------- ------
224,635 0.99
-------- ------
POLAND - 1.85%
Bank Handlowy w Warszawie SA 227,959 3,600
Bank Handlowy w Warszawie SA (GDR) 68,876 1,068 .02
Bank Przemyslowo- Handlowy SA 430,895 20,307 .09
Bank Rozwoju Eksportu SA 932,737 28,947 .13
Bank Slaski SA (3) 502,779 27,104 .12
Elektrim SA 3,001,993 34,506
Elektrim SA 3.75% convertible bond July 2, 2004 EUR54,044,000 49,547 .37
KGHM Polska Miedz SA (3) 858,600 6,435
KGHM Polska Miedz SA (GDR) (3) 5,092,100 76,127 .36
Polifarb Cieszyn-Wroclaw 946,367 1,599 .01
Polski Koncern Naftowy SA 4,000,000 19,310
Polski Koncern Naftowy SA (GDR) 6,675,700 62,918 .36
Powszechny Bank Kredytowy SA (2) 767,925 17,406
Powszechny Bank Kredytowy SA (GDR) (2) 4,220 93 .08
Telekomunikacja Polska SA (GDR) (2) 7,093,702 49,479 .22
Wielkopolski Bank Kredytowy SA 3,423,003 19,987 .09
-------- ------
418,433 1.85
-------- ------
PORTUGAL - 0.14%
TELECEL - Comunicacoes Pessoais, SA 2,097,000 31,842 .14
TVI - Televisao Independente, SA, nonvoting preferred (2) 52 - -
-------- ------
31,842 0.14
-------- ------
RUSSIAN FEDERATION - 1.79%
AO Mosenergo Power Generation and Electrification 4,015,300 15,660 .07
Amalgamation (ADS)
Irkutskenergo (ADR) 14,900 51 .00
Kamaz (2) 4,345,000 956 .00
Lenenergo (2) 28,336,800 5,667 .03
Lukinter Finance BV 3.50% convertible bond May 6, 2002 $22,796,000 23,138
LUKoil Holding, (ADR) 5,457,029 278,963
LUKoil Holding, preferred (ADR) 84,300 1,696 1.34
Moscow City Telephone Network (2) 3,007,500 18,045 .08
New Century Capital Partners, LP (acquired 12/7/95, 5,256,300 2,750 .01
cost: $5,492,000)(1)(2)(5)
Nizhny Novgorod Sviazinform (2) 780,000 936
Nizhny Novgorod Sviazinform (ADR) 710,000 1,704 .01
RAO Gazprom (ADR) 1,229,230 8,758
RAO Gazprom (ADR) (acquired 10/21/96, cost:$24,539,000)(1) 1,552,700 11,063 .05
Russian Telecommunications Development Corp. (acquired 380,000 -
12/22/93. Cost: $3,800,000)(1)(2)
Russian Telecommunications Development Corp., nonvoting 620,000 - -
(acquired 12/22/93, cost: $6,200,000)(1) (2)
St. Petersburg Telephone Network JSC (2) 12,913,020 7,748 .03
Sibir Energy PLC (2) 67,031 11 .00
StoryFirst Communications Inc., Class B, convertible $10,383 4,413 .02
preferred,(acquired 10/14/97, cost: $14,848,000)(1)(3)
Unified Energy System of Russia 193,919,700 22,301
Unified Energy System of Russia(GDR) 124,200 1,304 .11
-------- ------
405,164 1.79
-------- ------
SLOVAKIA - 0.01%
VSZ, AS(2)(3) 1,155,249 2,876 .01
-------- ------
SOUTH AFRICA - 5.61%
African Bank Investments Ltd. (2) 5,680,000 7,428 .03
African Oxygen Ltd. 14,532,064 26,597 .12
Bidvest Group Ltd. 904,500 6,248 .03
Coronation Holdings Ltd. 584,900 9,238
Coronation Holdings Ltd., Class N (3) 4,496,820 70,356 .35
Crew Development Corp. (acquired 6/21/00, cost: $600,000) (1) (2) 600,000 507
Crew Development Corp. (acquired 2/15/00, cost: $1,377,000) (1) (2) 1,600,000 1,351
Crew Development Corp., warrants, expire February 8, 1,600,000 0 .01
2001 (acquired 2/15/00, cost: $0) (1) (2)
De Beers Consolidated Mines Ltd. (ADR) 2,031,600 49,393 .22
Dimension Data Holdings Ltd. (2) 37,299,800 308,859 1.36
Edgars Consolidated Stores Ltd. 239 2 .00
Energy Africa Ltd. (2) 4,149,000 9,492 .04
Gencor Ltd. 2,993,500 8,616 .04
International Pepsi-Cola Bottler Investments (acquired 17,784 523 .00
12/18/95, cost: $1,678,000)(1)(2)(3)
Iscor Ltd. 5,234,766 8,924 .04
JD Group Ltd. 3,078,846 20,450 .09
M-Cell Ltd 46,000,000 223,041 .98
M-Web Holdings Ltd. (2) 9,934,032 6,085 .03
Metro Cash and Carry Ltd. (3) 85,367,356 52,921 .23
MIH Holdings Ltd.(2) 7,672,800 31,257 .14
Nasionale Pers Beperk (3) 12,144,800 101,281 .45
Old Mutual PLC 12,718,700 27,995 .12
Rembrandt Group Ltd. 1,285,700 12,430 .05
Sage Group Ltd. 4,462,951 10,770 .05
Sasol Ltd. 9,951,464 66,833 .30
South Africa Capital Growth Fund, LP, Class A 2,180 1,461
(acquired 8/25/95, cost: $1,399,000)(1)(5)
South Africa Capital Growth Fund, LP, Class D 13,650 9,145 .05
(acquired 8/25/95, cost:$8,554,000)(1)(5)
South African Breweries PLC 22,857,900 170,717 .75
South African Private Equity Fund III (acquired 30,333 29,243 .13
9/23/98, cost: $30,333,000)(1)(2)(3)
-------- ------
1,271,163 5.61
-------- ------
SOUTH KOREA - 15.23%
Amkor Technology, Inc. (2) 4,866,100 171,834 .76
Anam Semiconductor, Inc.(2)(3) 3,441,441 46,302 .21
Housing & Commercial Bank 3,307,885 77,438
Housing & Commercial Bank (GDR) 48,871 1,144 .35
Hyundai Electronics Industries Co., Ltd. (2) 13,570,691 267,787 1.18
Hyundai Industrial Development & Construction Co Ltd. 2,452,274 9,821 .04
Hyundai Motor Co. 5,940,864 76,199
Hyundai Motor Co. (GDR) 7,134,204 46,373
Hyundai Motor Co., nonvoting preferred (GDR) 1,228,683 4,809 .56
Keumkang Ltd.(3) 524,971 18,246 .08
KorAm Bank (3) 5,085,990 30,792 .14
Korea Telecom Corp. 373,070 24,862
Korea Telecom Corp. (ADR) 1,589,338 76,884 .45
Korea Zinc Co. Ltd. (3) 1,177,012 14,938 .07
LG Electronics Inc. 271,680 7,603
LG Electronics Inc., nonvoting preferred (GDR) 216,150 1,816 .04
Mirae Corp. 132,429 540 .00
Pohang Iron & Steel Co., Ltd. 1,913,035 163,946
Pohang Iron & Steel Co., Ltd. (ADR) 1,965,320 47,168 .93
Samsung Co., Ltd. 2,880,570 24,829 .11
Samsung Display Devices (3) 3,217,836 154,412
Samsung Display Devices (GDR)(3) 2,318,740 27,709 .81
Samsung Electro-Mechanics Co. 2,094,070 131,290 .58
Samsung Electronics Co., Ltd. 3,260,060 1,078,987
Samsung Electronics Co., Ltd., nonvoting preferred 100,923 14,800
Samsung Electronics Co., Ltd. (GDS) 2,659,637 522,619
Samsung Electronics Co., Ltd., nonvoting preferred (GDS) 264,441 24,183 7.24
Samsung Fire & Marine Insurance 1,877,291 52,198 .23
Shinhan Bank 9,875,700 93,008
Shinhan Bank (GDR) 2,624,400 49,142 .63
Shinsung ENG (3) 1,538,270 8,278 .04
SK Telecom Co., Ltd. 235,390 77,063
SK Telecom Co., Ltd. (ADR) 1,865,090 67,726 .64
Trigem Computer Inc. (3) 1,618,838 32,452 .14
-------- ------
3,447,198 15.23
-------- ------
SRI LANKA - 0.02%
Asian Hotels Corp. Ltd. (2) 7,335,000 537 .00
Development Finance Corp. of Ceylon 932,861 1,270 .01
National Development Bank of Sri Lanka 1,995,900 1574 .01
-------- ------
3,381 0.02
-------- ------
TAIWAN - 10.00%
Acer Peripherals Inc. 7,897,021 22,416 .10
Advanced Semiconductor Engineering, Inc. 40,881,855 125,380
Advanced Semiconductor Engineering, Inc. (GDR) (2) 4,685,483 79,067 .90
ASE Test Ltd. (2) 3,578,500 105,342 .47
Asia Corporate Partners Fund, Class B (acquired 40,000 23,673 .11
3/12/96, cost: $19,775,000)(1)(2)(5)
ASUSTeK Computer Inc. 21,206,643 175,742
ASUSTeK Computer Inc. (GDR) 2,192,487 20,281 .87
Bank SinoPac (2) 63,591,000 41,080 .18
Cathay Life Insurance Co., Ltd. 12,428,640 28,791 .13
China Development Industrial Bank (2) 28,800,000 38,525 .17
China Steel Corp. 11,859,000 8,125
China Steel Corp. (ADR) (acquired 7/30/99, cost: $94,000) (1) 6,392 87
China Steel Corp. (GDS) 2,184,926 29,770 .17
CMC Magnetics Corp. (2) 32,882,569 84,754 .37
Compal Electronics, Inc. 6,222,975 15,329 .07
Far Eastern Textile Ltd. (GDR) (2) 456,300 5,761 .03
Hon Hai Precision Industry Co., Ltd. (2) 3,671,000 33,297
Hon Hai Precision Industry Co. Ltd. (GDR) (2) 2,138,200 53,134 .38
Primax Electronics Ltd. (2) 11,644,190 14,626 .06
Seres Capital (Cayman Islands)(acquired 3/12/96, 2 45
cost: $12,000)(1)(3)
Seres Capital (Cayman Islands), nonvoting (acquired 8 225 .00
3/12/96, cost: $63,000)(1)
Siliconware Precision Industries Co., Ltd. (GDR) (2) 3,690 41 .00
Taiwan Semiconductor Manufacturing Co., Ltd. (2) 241,060,212 1,148,280 5.07
United Microelectronics Corp., Ltd.(2)(3) 31,899,000 88,984 .39
United World Chinese Commercial Bank 47,669,000 45,414 .20
VIA Technologies, Inc. (2) 4,573,000 70,870 .31
Wus Printed Circuit Co., Ltd. (2) 2,250,287 4,001 .02
-------- ------
2,263,040 10.00
-------- ------
THAILAND - 0.22%
Charoen Pokphand Feedmill PCL 332,178 496
Charoen Pokphand Feedmill PCL, warrants, expire June 30, 2002 (2) 166,089 0 .00
Dusit Thani PCL (2) 1,083,366 664 .00
Electricity Generating Authority of Thailand 4,515,047 4,841 .02
Post Publishing PCL (3) 2,525,000 2,063 .01
PTT Exploration and Production PCL 999,100 4,846 .02
Serm Suk PCL 210,166 740
Serm Suk PCL, local registered 64,960 163 .00
Siam City Cement PCL (2) 6,305,724 23,826 .12
Siam Commercial Bank PCL 5.25% convertible preferred 22,458,400 11,467
December 31, 2049 (2)
Siam Commercial Bank PCL, warrants, expire June 22, 2004 (2) 277,366 30 .05
Wattachak PCL 3.50% convertible bond December 6, 2003 (2) (6) $6,400,000 - -
-------- ------
49,136 0.22
-------- ------
TURKEY - 7.18%
Adana Cimento Sanayii TAS, Class A 521,096,824 7,985
Adana Cimento Sanayii TAS, Class C 2,435,405 7 .04
Akbank Turk AS 4,202,592,800 32,540 .14
Aktas Elektrik Ticaret AS 4,273,718 1,034 .01
Ege Biracilik ve Malt Sanayii AS (3) 969,282,614 63,323 .28
Erciyas Biracilik ve Malt Sanayii AS(2)(3) 825,686,600 38,625 .17
Eregli Demir ve Celik Fabrikalari TAS(2)(3) 2,792,965,200 112,632 .50
Koc Holding AS 1,138,161,192 80,782 .36
Migros Turk TAS 640,605,033 118,835 .52
Nergis Holding AS (2) 204,377,870 - -
Netas, Northern Electric Telekomunikasyon AS 187,361,200 20,854 .09
Petrol Ofisi AS 711,640,364 37,308
Petrol Ofisi AS, rights, expire July 27, 2000 (2) 501,569,312 21,036 .26
Soktas AS (2) 6,988,000 49 .00
Trakya Cam Sanayii AS 1,230,536,146 14,093 .06
Turk Dis Ticaret Bankasi AS (2) 332,579,930 818 .00
Turkiye Garanti Bankasi AS (2) 11,860,013,860 143,484 .63
Turkiye Is Bankasi AS, Class C 23,877,193,797 510,336
Turkiye Is Bankasi AS, Class C (GDR) 1,058,600 2,302 2.27
Turkiye Sise ve Cam Fabrikalari AS (3) 5,451,010,766 58,033 .26
Yapi ve Kredi Bankasi AS (3) 32,167,635,648 358,035 1.58
Yapi ve Kredi Koray AS, Class B(2)(3) 302,600,000 2,416 .01
-------- ------
1,624,527 7.18
-------- ------
UKRAINE - 0.01%
JKX Oil & Gas PLC (2) 6,338,095 1,441 .01
-------- ------
VENEZUELA - 0.29%
Cia Anonima Nacional Telefonos de Venezuela (CANTV), Class D (ADR) 2,392,700 65,052 .29
-------- ------
VIETNAM - 0.01%
Vietnam Frontier Fund (acquired 7/21/94, cost: $2,293,000) (1) (2) 222,610 890 .00
Vietnam Investment Fund, ordinary, units (acquired 6 0
8/4/94, cost: less than $1,000)(1)(2)
Vietnam Investment Fund, preferred, units acquired 30 1,161 .01
8/4/94, cost: $3,206,000)(1)(2)(5)
-------- ------
2,051 0.01
-------- ------
MULTINATIONAL - 2.70%
Aminex PLC (acquired 8/1/97, cost: $3,856,000)(1)(2) 3,250,000 1,478 .01
Armada Gold Corp. (2) 3,264,000 -
Armada Gold Corp. 10.00% convertible bond July 8, 2004 (2) (6) CAD800,000 - -
Asia Pacific Resources International Holdings Ltd.(2)(3) 3,024,800 3,065 .01
Billiton PLC 34,637,000 141,170
Billiton PLC (ADR) 180,600 734 .63
Black Swan Gold Mines Ltd. (2) 2,275,000 323 .00
Capital International Global Emerging Markets Private 56,000 60,668 .27
Equity Fund, LP (acquired 6/30/99, cost: $54,703,000)(1)(5)
Coca-Cola Beverages PLC (2) 39,042,580 62,123 .28
DiamondWorks Ltd. (2) 3,966,000 134 .00
Genting International PLC (2) 300 - -
Glencar Mining PLC (2) 519,735 85 .00
Goldbelt Resources Ltd. (2) 766,372 - -
Kimberley Resources Ltd. (2) 426,221 43
Kimberley Resources Ltd., rights, expire July 12, 2000 (2) 53,277 0 .00
MIH Ltd., Class A (2)(3) 1,981,940 59,520 .26
New Asia East Investment Fund Ltd., Class A (acquired 293,600 2937
5/23/96, cost: $2,352,000)(1)(5)
New Asia East Investment Fund Ltd., Class B (acquired 4,006,400 40,073 .19
5/23/96, cost: $32,101,000)(1)(5)
New Europe East Investment Fund Ltd., Class B 436 32,615 .14
(acquired 6/4/93, cost: $30,899,000)(1)
Panamerican Beverages, Inc., Class A 6,128,400 91,543 .40
StarMedia Network, Inc. (2) 147,600 2,786 .01
Telefonica, SA (ADR) (2) 1,764,879 113,063 .50
-------- ------
612,360 2.70
-------- ------
MISCELLANEOUS - 1.49%
Equity securities in inital period of acquisition 338,124 1.49
-------- ------
TOTAL EQUITY SECURITIES (cost: $15,027,784,181) 22,007,152 97.21
-------- ------
Principal
Amount Market Percent
(000) Value Of Net
BONDS AND NOTES (000) Assets
-------------------------------------------- -------- -------- ------
ARGENTINA - 0.09%
Republic of Argentina:
11.375% January 30, 2017 $8,045 7,220
11.75% February 12, 2007 ARS440 362
11.75% April 7, 2009 $2,250 2,098 .04
CEI Citicorp Holdings SA, Series B 11.25% February 14, 2007 10,575 10,211 .05
---------- ------
19,891 0.09
---------- ------
BRAZIL - 0.18%
Federal Republic of Brazil:
11.625% April 15, 2004 180 182
Capitalization Bond PIK 8.00% April 15, 2014 44,549 32,855
MYDFA Trust 6.8125% September 15, 2007 2,597 2,243 .15
(acquired 10/2/96, cost: $2,327,000) (1) (4)
Brazil Global Bond 10.125% May 15, 2027 2,463 1,946 .01
Globo Comunicacoes e Participacoes Ltd. 10.625% December 5, 2008 3,835 3,231
Globo Comunicacoes e Participacoes Ltd. 10.625% 1,000 843 .02
December 5, 2008 (acquired 6/18/99, cost: $735,000) (1)
McCaw International, Ltd. (owned by NEXTEL Communications, 170 130 .00
Inc.) 0%/13.00% April 15, 2007 (2) (7)
RBS Participacoes SA 11.00% April 1, 2007 (acquired 250 207 .00
7/30/99, cost: $173,000) (1)
---------- ------
41,637 0.18
---------- ------
BULGARIA - 0.02%
Republic of Bulgaria Front Loaded Interest Reduction 5,195 3,843 .02
Bond, Series A, 2.50% July 28, 2012 (4)
---------- ------
INDIA - 0.00%
Flex Industries Ltd. 13.50% December 31, 2004 (2) INR29,929 - -
---------- ------
INDONESIA - 0.06%
APP International Finance 11.75% October 1, 2005 $700 495 .00
DGS International Finance Co. BV 10.00% June 1, 2007 1,525 431 .00
Indah Kiat International Finance:
10.00% July 1, 2007 7,189 4,403
11.875% June 15, 2002 2,950 2,412 .03
Pindo Deli Finance Mauritius Ltd.:
10.25% October 1, 2002 2,035 1,470
10.75% October 1, 2007 7,275 4,383 .03
---------- ------
13,594 0.06
---------- ------
MEXICO - 0.13%
Innova, S de RL 12.875% Senior Notes due April 1, 2007 1,000 928 .00
United Mexican States Government Bonds:
11.375% September 15, 2016 5,260 6,023
11.50% May 15, 2026 19,490 23,485 .13
---------- ------
30,436 0.13
---------- ------
PANAMA - 0.05%
Republic of Panama:
8.875% September 30, 2027 5,615 4,745
Interest Reduction Bonds 3.75% July 17, 2014 2,504 2,003
(acquired 11/8/95, cost: $1,258,000)(1)(4)
Past Due Interest Bonds:
5.938% July 17, 2016 (4) 4,994 4,107 .05
6.688% July 17,2016 (acquired 6/21/96, 821 676
cost: $587,000) (1)(4)
---------- ------
11,531 0.05
---------- ------
POLAND - 0.00%
Netia Holdings BV 0%/11.25% November 1, 2007 (2) (7) 875 586 .00
PTC International Finance BV 0%/10.75% July 1, 2007 (2) (7) 625 445 .00
---------- ------
1,031 0.00
---------- ------
RUSSIAN FEDERATION - 0.07%
Russia Interest Arrears note 6.90625% December 15, 182 57
2015 (acquired 12/5/97, cost $27,000)(1)(2)(4)
Russia 12.75% June 24, 2028 (acquired 6/18/98, 910 783
cost $897,000) (1)
Russian Federation 7.9375% Decmeber 15, 2020 Agent 48,114 14,855 .07
- Bank of America, NTSA/Loan Participation Agreements
(Participation-Morgan Guaranty Trust, NA) (4) (6) (8)
---------- ------
15,695 0.07
---------- ------
SOUTH AFRICA - 0.01%
Republic of South Africa 13.00% August 31, 2010 ZAR11,600 1,603 .01
---------- ------
THAILAND - 0.00%
Advance Agro Capital BV 13.00% November 15, 2007 $1,000 645 .00
---------- ------
TURKEY - 0.08%
Cellco Finance NV:
12.75% August 1, 2005 (acquired 12/17/99, cost: $750,000) (1) 750 784
15.00% August 1, 2005 2,050 2,209 .02
Republic of Turkey:
11.875% January 15, 2030 12,280 13,093
12.00% December 15, 2018 900 944 .06
---------- ------
17,030 0.08
---------- ------
VENEZUELA - 0.11%
Republic of Venezuela:
Debt Conversion Bonds:
Eurobond 7.875% December 18, 2007 (4) 8,393 6,830
9.25% September 15, 2027 23,660 15,645 .10
Front Loaded Interest Reduction Bonds:
Series A Eurobond 7.4375% March 31, 2007 (4) 2,333 1,914
Series B Eurobond 7.4375% March 31, 2007 (4) 833 683 .01
---------- ------
25,072 0.11
---------- ------
TOTAL BONDS AND NOTES (cost: $163,836,525) 182,008 0.80
Shares/
Principal Market Percent
Amount Value Of Net
SHORT-TERM SECURITIES (000) Assets
-------------------------------------------- -------- -------- ------
CORPORATE SHORT-TERM NOTES - 3.16%
Alcoa Inc. 6.58% due 7/25/00 25,000 24,887 .11
Asset Securitization Cooperative Corp., 6.58%-6.81% due 7/5/00 50,000 49,881 .22
Bayerische Hypo-Und Vereinsbank AG 6.61% due 8/7/00 25,000 24,827 .11
British Telecommunications PLC 6.55% due 7/5/00 14,000 13,987 .06
CDC Commercial Paper Corp. 6.58% due 7/20/00 39,800 39,656 .18
Den Danske Corp. Inc. 6.55% due 7/10/00 25,000 24,955 .11
Exxon Mobil (Australia) 6.52-6.74% due 7/5/00 30,000 29,973 .13
General Electric Capital Corp. 6.95% due 7/3/00 15,500 15,491 .07
Halifax PLC 6.56% due 7/5/00 70,490 70,426 .31
IBM Credit Corp. 6.54% due 7/5/00 21,000 20,981 .10
Lucent Technologies Inc. 6.52% due 7/5/00 50,000 49,955 .22
Motorola Inc. 6.20% due 7/7/00 27,500 27,466 .12
National Australia Funding (DE) Inc. 6.52-6.76% due 7/5/00 118,000 117,891 .52
Park Avenue Receivables Corp. 6.86% due 7/5/00 15,000 14,986 .07
Pharmacia & Upjohn Inc. 6.78% due 7/5/00 50,000 49,953 .22
PT Indah Kiat Pulp & Paper Corp. Tbk 8.875% due 11/1/00 125 123 .00
Royal Bank of Canada 6.55% due 7/5/00 6,367 6,361 .03
UBS Finance (Delaware) Inc. 6.55-6.96% due 7/3 - 7/5/00 103,100 103,006 .45
Wal-Mart Stores Inc. 6.52% due 7/5/00 (3) 29,000 28,973 .13
---------- ------
713,778 3.16
---------- ------
FEDERAL AGENCY DISCOUNT NOTES - 1.77%
Fannie Mae 6.50%-6.59% due 7/13-8/3/00 35,490 35,350 .16
Federal Home Loan Bank Discount Corp. 6.58%-6.60% due 7/26-8/4/00 94,092 93,522 .41
Freddie Mac 6.49%-6.68% due 7/5-9/7/00 273,730 272,251 1.20
---------- ------
401,123 1.77
---------- ------
NON-U.S. GOVERNMENT SHORT-TERM OBLIGATIONS - 0.08%
Letra Tesouro Nacional due 5/2/01 (7) BRL37 18,026 .08
---------- ------
NON-US CURRENCY - 0.08%
Malaysian Ringgits MYR24,988 6,576 .03
Taiwanese Dollars TWD373,380 12,182 .05
---------- ------
18,758 0.08
---------- ------
TOTAL SHORT-TERM SECURITIES (cost:$1,151,309,359) 1,151,685 5.09
---------- ------
TOTAL INVESTMENT SECURITIES (cost:$16,342,930,065) 23,340,845 103.10
Net unrealized depreciation on foreign currency contracts (9) (20,208) (0.09)
Excess of payables over cash and receivables (681,987) (3.01)
(excludes open foreign currency contracts)
NET ASSETS $22,638,650 100.00%
1. 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 June 30,
2000, the total market value and cost of such securities was
$391,365,000 and $442,295,000, respectively, and the
market value represented 1.73% of net assets. Such securities,
excluding certain convertible bonds and American Depositary
Receipts, are valued at fair value.
2. Non-income producing securities.
3. The fund owns 5.00% or more of the outstanding voting
securities of this company, which represents investment in an
affiliate as defined in the Investment Company Act of 1940.
4. Coupon rate may change periodically.
5. Includes an unfunded capital commitment representing
a binding commitment made by the fund which may be
paid in the future.
6. Security is currently in default.
7. Represents a zero coupon bond that will convert to
a coupon-bearing security at a later date.
8. Participation interests were acquired through the
financial institution indicated parenthetically.
9. As of June 30, 2000, the net payable consists of the following:
</TABLE>
<TABLE>
U.S. Valuation
at 6/30/2000 Unrealized
U.S. Amount (Depreciation)
(000) (000) (000)
<S> <C> <C> <C>
Sales:
South African Rands expiring 11/16/00
ZAR4,321,150 $608,805 $629,013 ($20,208)
SYMBOLS:
SECURITIES:
ADR - American Depositary Receipts
ADS - American Depositary Shares
GDR- Global Depositary Receipts
GDS- Global Depositary Shares
NON - US CURRENCY:
ARS - Argentine Peso
BRL - Brazilian Real
CAD - Canadian Dollar
EUR - Euro Dollar
INR - Indian Rupee
MXN - Mexican Peso
MYR - Malaysian Ringgit
PHP - Philippine Peso
TWD - Taiwan Dollar
ZAR - South African Rand
See Notes to Financial Statements
</TABLE>
EQUITY SECURITIES ADDED TO THE
PORTFOLIO SINCE DEC. 31, 1999
African Bank Investments
Amkor Technology
Aracruz Celulose
AsiaInfo Holdings
AudioCodes
BackWeb Technologies
Bancolombia
Bank SinoPac
Cadbury India
Cathay Life Insurance
Check Point Software Technologies
China Development Industrial Bank
Crew Development
Dimension Data Holdings
DSP Group
HCL Technologies America
Hon Hai Precision Industry
Housing & Commercial Bank
KorAm Bank
MUSIC
NIIT
Nova Measuring Instruments
PT Mustika Ratu
RADVision
Rediff.com India
Resorts World
RHB Capital
SET India
SET Satellite (Singapore) Private
Skyworth Digital Holdings
Soktas
StarMedia Network
Tanjong
Telefonica
United World Chinese Commercial Bank
VIA Technologies
Vyyo
Zoran
EQUITY SECURITIES ELIMINATED FROM
THE PORTFOLIO SINCE DEC. 31, 1999
Alpha Credit Bank
AO Torgovy Dom Gum
APM Automotive Holdings
Asia Cement
Avalon Oil
Banco Rio de la Plata
Brasmotor
Cathay Construction
Cia. de Electricidade do Estado do Rio de Janeiro - CERJ
Cia. Paranaense de Energia - COPEL
Cie. Financiere pour l'Europe Centrale
EXBUD
Flex Industries
Hansol Paper
Hudaco Industries
Indian Aluminium
Koor Industries
LML
Madras Cements
Metropolitan Bank and Trust
Ng Fung Hong
Phatra Insurance
Ritek
San Miguel
Seoul Asia Index Trust
Sime UEP Properties
Southeast Asia Cement Holdings
Tan Chong Motor Holdings
Tata Iron & Steel
Tele Norte Leste Participacoes
Tele Sudeste Celular Participacoes
Telecomunicacoes de Sao Paulo --Telesp
Telefonica de Argentina
Telesp Participacoes
White Martins
<TABLE>
Emerging Markets Growth Fund, Inc.
Statement of Assets and Liabilities
at June 30, 2000
(dollars in thousands, except per share data)
<S> <C> <C>
Assets:
Investment securities at market
(cost: $16,342,930) $23,340,845
Cash 6,132
Receivables for--
Sales of investments $ 174,593
Sales of fund shares 17,750
Dividends and accrued interest 43,072 235,415
Open forward currency contracts 0
23,582,392
Liabilities:
Non-U.S. taxes payable 79,957
Payables for--
Purchases of investments 183,542
Unfunded capital commitments 59,205
Redemptions of fund shares 585,434
Open forward currency contracts 20,208
Management services 10,759
Accrued expenses 4,637 863,785
943,742
Net Assets at June 30, 2000 --
Equivalent to $68.69 per share on
329,596,210 shares of $0.01 par value
capital stock outstanding (authorized
capital stock -- 400,000,000 shares) $22,638,650
See Notes to Financial Statements
Emerging Markets Growth Fund, Inc.
Statement of Operations
For the Year Ended June 30, 2000
(dollars in thousands)
Investment Income:
Income:
Dividends $272,728
Interest 115,337 $388,065
Expenses:
Management services fee 127,133
Custodian fee 22,346
Registration statement and prospectus 25
Auditing and legal fees 472
Reports to shareholders 44
Taxes other than federal income tax 251
Directors' fees 203
Other expenses 1,284 151,758
Income before non-U.S. taxes 236,307
Non-U.S. taxes -
Net investment income 236,307
Realized Gain and Unrealized
Appreciation on Investments:
Realized gain before non-U.S. taxes 559,397
Non-U.S. taxes (15,301)
Net realized gain 544,096
Net unrealized appreciation on investment
securities 3,783,041
Net change in unrealized depreciation
on open forward currency contracts (525)
Net unrealized appreciation 3,782,516
Non-U.S. taxes (69,158)
Net unrealized appreciation on
investments 3,713,358
Net realized gain and net unrealized
appreciation on investments 4,257,454
Net Increase in Net Assets Resulting
from Operations $4,493,761
See Notes to Financial Statements
Emerging Markets Growth Fund, Inc.
Statement of Changes in Net Assets
(dollars in thousands, except per share data)
Year Ended June 30
2000 1999
Operations:
Net investment income $236,307 $411,622
Net realized gain (loss) on investments 544,096 (1,036,552)
Net unrealized appreciation
on investments 3,713,358 3,934,960
Net increase in net assets
resulting from operations 4,493,761 3,310,030
Dividends and Distributions Paid to Shareholders:
Dividends from net investment income (318,059) -
Capital Share Transactions:
Proceeds from shares sold:
39,012,206 and 58,327,982 shares, respectiv 2,639,392 2,473,079
Proceeds from shares issued in
reinvestment of net investment
income dividends:
4,595,840 shares 288,159 -
Cost of shares repurchased:
40,834,319 shares (2,612,027) -
Net increase in net assets
resulting from capital share
transactions 315,524 2,473,079
Total Increase in Net Assets 4,491,226 5,783,109
Net Assets:
Beginning of year 18,147,424 12,364,315
End of year (including excess net investment
income over net distributions: $23,786 and
$154,942, respectively) $22,638,650 $18,147,424
See Notes to Financial Statements
</TABLE>
Emerging Markets Growth Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Organization - Emerging Markets Growth Fund, Inc. (the "fund") is registered
under the Investment Company Act of 1940 as an open-end interval investment
company ("open-end interval fund"). The Fund was originally organized as a
closed-end, diversified management investment company. The Fund converted its
structure to that of an open-end interval fund on July 1, 1999. As an open-end
interval fund, the fund offers its shareholders the opportunity to purchase and
redeem shares on a periodic basis. The fund's investment objective is to seek
long-term capital growth through investment in developing country equity
securities.
Significant Accounting Policies - The financial statements have been prepared
in conformity with generally accepted accounting principles which require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies consistently followed by the fund in the preparation of its financial
statements:
Security Valuation - 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 their 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.
Non-U.S. Currency Translation - Assets and liabilities initially expressed
in terms of non-U.S. currencies are translated into U.S. dollars at the
prevailing market rates at the end of the reporting period. Purchases and sales
of securities and income and expenses are translated into U.S. dollars at the
prevailing market rates on the dates of such transactions. The effects of
changes in non-U.S. currency exchange rates on investment securities and other
assets and liabilities are included with the net realized and unrealized gain
or loss on investment securities.
Security Transactions and Related Investment Income - Security
transactions are accounted for as of the trade date. Realized gains and losses
from securities transactions are determined based on specific identified cost.
In the event securities are purchased on a delayed delivery or "when-issued"
basis, the fund will instruct the custodian to segregate liquid assets in an
amount sufficient to meet its payment obligations in these transactions.
Dividend income is recognized on the ex-dividend date, and interest income is
recognized on an accrual basis. Discounts and premiums on securities purchased
are amortized daily over the expected life of the security.
Purchases and Redemptions of Fund Shares - Shares of the fund are offered
for sale on the last business day of the week and on the last business day of
the month, subject to certain limitations. In accordance with the fund's
open-end interval policy, the fund redeems its shares at monthly intervals. At
June 30, 2000, payables for redemptions of fund shares totalled $585,434,000.
Dividends and Distributions to Shareholders - Dividends and distributions paid
to
shareholders are recorded on the ex-dividend date.
Unfunded Capital Commitments - 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.
The fund segregates liquid assets to cover such commitments.
Forward Currency Contracts - 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 enters into
these contracts to reduce its exposure to fluctuations in foreign exchange
rates arising from investments denominated in non-U.S. currencies. 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 fund records realized gains or losses at the time the forward
contract is closed or offset by a matching contract. The face or contract
amount in U.S. dollars reflects the total exposure the fund has in that
particular contract. Risks may arise upon entering these contracts from the
potential inability of counterparties to meet the terms of their contracts and
from possible movements in non-U.S. exchange rates and securities values
underlying these instruments. Purchases and sales of forward currency exchange
contracts having the same settlement date and broker are offset and presented
net in the statement of assets and liabilities.
Options - The fund may purchase options, which represent securities transaction
agreements tied to stocks. The risks associated with the use of options
include the imperfect correlation between the change in market value of
securities and the value of options, the possibility of an illiquid market and
the inability of the counterparty to meet the terms of the contracts. When
option contracts expire or are closed, realized gains or losses are recognized
without regard to any unrealized gains or losses on the underlying securities.
The fund had no options outstanding at June 30, 2000.
2. Non-U.S. Investment Risk
Investments in securities of non-U.S. issuers in certain countries involves
special investment risks. These risks may include, but are not limited to,
investment and repatriation restrictions, revaluation of currencies, adverse
political, social and economic developments, government involvement in the
private sector, limited and less reliable investor information, lack of
liquidity, certain local tax law considerations, and limited regulation of the
securities markets.
Non-U.S. Taxation - Dividend income, interest income and realized gain of the
fund derived in certain countries may be subject to certain non-U.S. taxes at
rates ranging from approximately 5% to 30%. The fund provides for such
non-U.S. taxes on investment income, net realized gain and net unrealized gain
at the appropriate rates for each jurisdiction.
3. Federal Income Taxation
The fund complies with the requirements of the Internal Revenue Code
applicable to regulated investment companies and intends to distribute all of
its net taxable income and net capital gains for the fiscal year. As a
regulated investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are determined on a tax basis
and may differ from net investment income and net realized gains for financial
reporting purposes. In addition, the fiscal year in which amounts are
distributed may differ from the year in which the net investment income and net
realized gains are recorded by the fund.
As of June 30, 2000, net unrealized appreciation on investments, excluding
forward currency contracts, for federal income tax purposes aggregated
$6,788,948,000, net of accumulated deferred taxes totaling $78,379,000, of
which $8,479,237,000 related to appreciated securities and $1,690,289,000
related to depreciated securities. During the fiscal year ended June 30, 2000,
the fund realized, on a tax basis, a net capital gain of $455,316,000 on
securities transactions. At June 30, 2000, the fund had available a net
capital loss carryforward totaling $753,802,000 which may be used to offset
capital gains realized during subsequent years through 2008 and thereby relieve
the fund and its shareholders of any federal income tax liability with respect
to the capital gains that are so offset. The fund will not make distributions
from capital gains while a capital loss carryforward remains. The cost of
portfolio securities, excluding forward currency contracts, for federal income
tax purposes was $16,473,518,000 at June 30, 2000.
4. Fees and Transactions with Related Parties
Investment Advisory Fee - The fee of $127,133,000 for management services was
incurred 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;
0.56% of such assets in excess of $11 billion but not exceeding $15 billion;
0.54% of such assets in excess of $15 billion but not exceeding $20 billion;
and 0.52% of such assets in excess of $20 billion. CII is owned by Capital
Group International, Inc., which is a wholly owned indirect subsidiary of The
Capital Group Companies, Inc.
Deferred Directors' Fees - Directors who are unaffiliated with CII may elect to
defer part or all of the fees earned for services as members of the Board.
Amounts deferred are not funded and are general unsecured liabilities of the
fund. As of June 30, 2000, aggregate amounts deferred and earnings thereon
were $213,000. These amounts are included with accrued expenses.
5. Investment Transactions and Other Disclosures
As of June 30, 2000, accumulated undistributed net realized loss on investments
was $824,953,000 and additional paid-in capital was $16,537,399,000. The fund
reclassified $47,333,000 to undistributed net realized loss from additional
paid-in capital and $49,404,000 to additional paid-in capital from
undistributed net investment income for the fiscal year ended June 30, 2000 as
a result of permanent differences between book and tax.
The fund made purchases and sales of investment securities, excluding certain
short-term securities, of $7,701,293,000 and 7,449,422,000, respectively,
during the fiscal year ended June 30, 2000.
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 $22,346,000 includes $179,000 that was paid by these
credits rather than in cash.
Dividend and interest income is recorded net of non-U.S. taxes paid. For the
fiscal year ended June 30, 2000, such non-U.S. taxes were $30,171,000. Net
realized currency losses on dividends, interest, withholding taxes reclaimable,
sales of non-U.S. bonds and notes, and other receivables and payables, on a
book basis, were $25,932,000 for the fiscal year ended June 30, 2000.
<TABLE>
Emerging Markets Growth Fund, Inc.
Per-Share Data and Ratios
Year Year Year Year Year
ended ended ended ended ended
June 30 June 30 June 30 June 30 June 30
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year $55.53 $46.05 $70.87 $57.57 $52.36
Income from Investment
Operations:
Net investment income 0.58 1.48 1.56 1.61 1.30
Net realized and unrealized
gain (loss) on investments
before non-U.S. taxes 13.86 8.03 (20.69) 14.51 6.49
Non-U.S. taxes (.30) (.03) 0.05 (.01) (.01)
Total income (loss) from
investment operations 14.14 9.48 (19.08) 16.11 7.78
Less Distributions:
Dividends from net
investment income (.98) (2.36) (1.79) (1.30)
Distributions from net
realized gains (3.38) (1.02) (1.27)
Total distributions (.98) (5.74) (2.81) (2.57)
Net Asset Value, End of Year $68.69 $55.53 $46.05 $70.87 $57.57
Total Return 25.63% 20.59% (27.56)% 29.17% 15.49%
Ratios/Supplemental Data:
Net assets, end of year
(in millions) $22,639 $18,147 $12,364 $13,584 $8,451
Ratio of expenses to average
net assets .71% .73% .76% .78% .84%
Ratio of expenses and non-U.S.
taxes to average net assets 1.15% .73% .80% .78% .85%
Ratio of net income to average
net assets 1.11% 3.03% 2.58% 2.74% 2.54%
Portfolio turnover rate 35.86% 33.71% 23.41% 23.75% 17.78%
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of Emerging Markets Growth Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of Emerging Markets Growth Fund (the
"Fund") at June 30, 2000, the results of its operations, the changes in its net
assets, and the per-share data and ratios for the periods indicated, in
conformity with accounting principles generally accepted in the United States.
These financial statements and per-share data and ratios (hereafter referred to
as "financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at June 30, 2000 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
August 4, 2000
Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. Please note that the fund made distributions to its
shareholders during the current fiscal year of $0.98 per share.
The fund makes an election under the Internal Revenue Code Section 853 to pass
through non-U.S. taxes paid by the fund to its shareholders. The amount of
non-U.S. taxes and foreign source income on a per-share basis for the fiscal
year ended June 30, 2000 are $0.09 and $0.62, respectively. Shareholders are
entitled to a foreign tax credit or an itemized deduction, at their option.
Generally, it is more advantageous to claim a credit rather than to take a
deduction.
Corporate shareholders may exclude up to 70% of qualifying dividends received
during the year. For purposes of computing this exclusion, none of the
dividends paid by the fund from net investment income represent qualifying
dividends.
The fund did not derive any interest on direct U.S. Treasury obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their annual
information reporting.
Since the amounts above are reported for the fund's fiscal year and not the
calendar year, shareholders should refer to their Form 1099-DIV or other tax
information that will be mailed in 2001 to determine the calendar year amounts
to be included on their 2000 tax returns. Shareholders should consult their tax
advisers.
Board of Directors
R. Michael Barth, The Hague, The Netherlands
Chief Executive Officer, F.M.O.,
The Netherlands Development Finance Company
Collette D. Chilton, Murray Hill, New Jersey
Chief Investment Officer,
Lucent Technologies, Inc.
Nancy Englander, Los Angeles, California
President of the fund
Senior Vice President, Capital International, Inc.
David I. Fisher, Los Angeles, California
Vice Chairman of the Board of the fund
Chairman of the Board,
Capital Group International, Inc.
Khalil Foulathi, Abu Dhabi, United Arab Emirates
Executive Director, Abu Dhabi Investment Authority
Beverly L. Hamilton, Los Angeles, California
Investment Management Adviser;
former President, ARCO Investment
Management Company
Raymond Kanner, Stamford, Connecticut
Director, Global Equity Investments,
IBM Retirement Funds
Marinus W. Keijzer, Zeist, The Netherlands
Director, Investment Strategy, Pensioenfonds PGGM
Hugh G. Lynch, Ridgewood, New Jersey
Director, The Greater China Fund;
former Managing Director, General Motors
Investment Management Corporation
Helmut Mader, Kronberg, Germany
Former Director, Deutsche Bank AG
William Robinson, New South Wales, Australia
Director, Deutsche Fund Management Limited
Aje K. Saigal, Singapore
Director, Global Equities,
Government of Singapore Investment Corp. plc
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 International, Inc.
Shaw B. Wagener, Los Angeles, California
Executive Vice President of the fund
President and Director,
Capital International, Inc.
Other Officers
Roberta A. Conroy, Los Angeles, California
Senior Vice President and Secretary of the fund
Assistant General Counsel,
The Capital Group Companies, Inc.
Hartmut Giesecke, Singapore
Senior Vice President of the fund
Chairman of the Board and Director,
Capital International K.K.;
Senior Vice President and Director,
Capital International, Inc.
Victor D. Kohn, Los Angeles, California
Senior Vice President of the fund
Senior Vice President and Director,
Capital International, Inc.
Nancy J. Kyle, New York, New York
Senior Vice President of the fund
Senior Vice President and Director,
Capital Guardian Trust Company
Michael A. Felix, Brea, California
Vice President and Treasurer of the fund
Senior Vice President, Capital International, Inc.
Peter C. Kelly, Los Angeles, California
Vice President of the fund
Senior Vice President and Director,
Capital International, Inc.
Robert H. Neithart, Los Angeles, California
Vice President of the fund
Executive Vice President and Research Director
of Emerging Markets, and Director,
Capital International Research, Inc.
Abbe G. Shapiro, Los Angeles, California
Vice President of the fund
Vice President, Capital International, Inc.
Lisa B. Thompson, New York, New York
Vice President of the fund
Vice President and Research Director
of Emerging Markets, and Director,
Capital International Research, Inc.
Valerie Y. Lewis, Los Angeles, California
Assistant Secretary of the fund
Fund Compliance Specialist,
The Capital Group Companies, Inc.
Jeanne M. Nakagama, Brea, California
Assistant Treasurer of the fund
Vice President, Capital International, Inc.
Lee K. Yamauchi, Brea, California
Assistant Treasurer of the fund
Vice President, Capital International, Inc.
Offices of The Fund and of The Investment Adviser,
Capital International, Inc.
11100 Santa Monica Boulevard, 15th Floor
Los Angeles, California 90025-3302
135 South State College Boulevard
Brea, California 92821-5823
Custodian of Assets
The Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
Counsel
Dechert Price & Rhoads
1775 Eye Street, N.W.
Washington, D.C. 20006-2401
Independent Accountants
PricewaterhouseCoopers 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 TAG/CGRC/4674/75012
(c) 2000 Emerging Markets Growth Fund, Inc.
Lit. No. EMGF-011-0800(NLS)
