Emerging Markets Growth Fund(SM)
Seeks Long-Term Growth of Capital By Investing in Companies Operating in
Developing Countries Around the World
Semi-Annual Report
For the Six Months Ended December 31, 1999
[cover: outline of the globe]
FELLOW SHAREHOLDERS:
The six months ended December 31 - the first half of our 2000 fiscal year - was
a highly rewarding period for investors in Emerging Markets Growth Fund (EMGF).
The value of the fund's shares rose 29.9%, assuming reinvestment of the income
dividend of 98 cents a share that was paid in December.
These results outpaced by a wide margin the increase recorded for the period by
the fund's principal benchmark, the unmanaged Morgan Stanley Capital
International Emerging Markets Free (EMF) Index, which tracks stocks in 25
developing countries. For the half-year, the index was up 19.0%.*
*All percentage gain/loss figures are in U.S. dollars and include reinvestment
of distributions unless otherwise indicated.
Looking back over the past 12 months, EMGF generated returns during calendar
1999 that were exceptional in absolute terms and superior to those recorded by
the index. The 12-month gain was 77.9% versus 66.4% for the index.
The longer term comparisons are also favorable. For the five years ended
December 31 - a period encompassing jarring selloffs as well as rallies -
Emerging Markets Growth Fund had a total return of 58.3%, more than quintuple
the 10.4% gain recorded by the EMF Index. For the 10 years ended December 31,
the fund produced a return of 349.4%, or 16.2% annually, versus 185.1% for the
index.
[begin side bar]
EMGF Total Returns vs. Morgan Stanley Capital International Emerging Markets
Free (EMF) Index for periods ended 12/31/99 (with distributions reinvested)
<TABLE>
<CAPTION>
Emerging Annualized MSCI Annualized
Markets Emerging
Growth Fund Markets
(EMGF) Free Index
<S> <C> <C> <C> <C>
12 Months +77.9% - +66.4% -
3 Years +46.6 +13.6% +9.8 +3.2%
5 Years +58.3 +9.6 +10.4 +2.0
10 Years +349.4 +16.2 +185.1 +11.0
</TABLE>
[end side bar]
A BROAD RECOVERY
In our 1999 annual report, we expressed the view that the bear market in our
investment universe had probably reached bottom in the early autumn of 1998,
and that the price weakness during that period would be looked back upon as an
outstanding buying opportunity. The events of the past six months have served
to reinforce that view.
The recovery that began more than a year ago broadened during the latter part
of calendar 1999. Most of the markets represented in our portfolio registered
gains, many in double digits. The advance was inspired by improving economic
conditions and attractive valuations relative to earnings prospects. During the
final weeks of the twentieth century, there was a growing realization that
fears about the millennium date change had been overblown. Largely as a result,
December turned out to be an especially good month in quite a few emerging
markets.
EVALUATING OUR RESULTS
The unusually wide gap between the fund and its benchmark for the half-year can
be traced to several factors. Relative to the EMF Index, EMGF was substantially
overweighted in Turkey, by far the strongest market during the period, with an
increase of 143%. Additionally, a number of our largest holdings did
particularly well; six of the 10 largest (see table) registered six-month gains
of more than 50%.
Another important contributing factor was EMGF's industry concentration.
Relative to the index, the fund was overrepresented in telecommunications and
technology stocks - areas of the market that moved sharply upward in many
developing as well as developed countries. During the six months just ended,
the majority of our telecommunications and technology holdings did very well,
including our three largest positions: Telmex (+39%), Samsung Electronics
(+120%) and Taiwan Semiconductor Manufacturing (+41%). Together, they account
for some 15% of net assets. Over the past several years, the fund had built up
its investments in these and other tech and telecom stocks, capitalizing on
periods of declining prices, when valuations reached levels that we felt were
appealing.
Although the fund's portfolio differs markedly from the structure of the EMF
Index in terms of industry concentration, region by region it now matches up
rather closely. The similarity in geographic diversification can be seen from
the table on page 3. The portfolio, it should be noted, is managed with a
bottom-up approach, without placing any emphasis on either geographic or
industry concentration.
[begin side bar]
Ten Largest Equity Holdings
<TABLE>
<CAPTION>
Percent of Percent of Gain/Loss
Net Assets for the Six Months
Ended 12/31/99*
(in U.S. Dollars)
<S> <C> <C>
Telefonos de Mexico
(Telmex) 5.90% +39.30%
Samsung Electronics 4.61 +120.42
Taiwan Semiconductor
Manufacturing 4.29 +41.43
Turkiye Is Bankasi 2.70 +169.64
Yapi ve Kredi Bankasi 2.02 +113.66
Infosys Technologies 1.93 +298.24
Grupo Televisa 1.66 +52.26
Banco Itau 1.61 +67.03
Advanced Semiconductor
Engineering 1.32 + 15.63
Pohang Iron & Steel 1.31 -1.90
</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.
[end side bar]
A LOOK AHEAD
EMGF has used the recovery in share prices to take profits and trim back
positions in a number of securities. They include successful investments -
stocks that have risen to levels where we elected to realize our gains - and
others that did not turn out as well as expected. We are still very positive
about the prospects for the vast majority of companies in our portfolio.
[begin side bar]
Where The Fund's Assets Are Invested
<TABLE>
<CAPTION>
Market Value
Percent of Net Assets MSCI EMF Index/1/ of Holdings
-------------------- ------------------- 12/31/99
12/31/98 6/30/99 12/31/99 6/30/99 12/31/99 (in thousands)
<S> <C> <C> <C> <C> <C> <C>
Asia/Pacific
China .6% .4% .6% .8% .4% $151,642
Hong Kong .6 .7 1.3 - - 299,260
India 4.8 5.5 7.8 7.5 8.4 1,831,927
Indonesia 2.0 3.0 2.8 2.3 1.7 647,476
Malaysia .9 2.2 1.7 -/2/ -/2/ 406,319
Pakistan .1 .1 .1 .3 .4 16,311
Philippines 3.1 2.4 1.4 1.8 1.2 329,598
South Korea 5.4 7.9 10.9 14.8/3/ 13.9/3/ 2,540,324
Sri Lanka .1 - - - - 5,967
Taiwan 7.1 10.9 9.1 12.3/4/ 11.0/4/ 2,142,289
Thailand .7 .9 .6 3.8 3.0 129,752
Vietnam - - - - - 2,347
25.4 34.0 36.3 43.6 40.0 8,503,212
Latin America
Argentina 8.6 4.7 3.1 2.4 2.1 733,235
Brazil 12.3 10.1 9.6 8.7 9.9 2,250,195
Chile 3.7 3.2 1.8 3.9 3.5 420,004
Colombia - - - .4 .4 -
Ecuador - - - - - 119
Mexico 12.5 14.4 12.7 11.9 11.6 2,969,290
Panama 1.0 .1 .1 - - 11,240
Peru 1.7 1.1 1.1 .8 .7 261,711
Venezuela .9 .9 .5 .8 .6 120,415
40.7 34.5 28.9 28.9 28.8 6,766,209
Eastern Europe
Bulgaria .2 - - - - 3,759
Czech Republic .5 .6 .5 .8 .6 107,994
Hungary 1.0 2.3 2.0 1.2 1.2 465,835
Kazakhstan - - - - - 1,193
Poland 1.8 2.0 1.6 1.2 1.3 380,325
Republic of Croatia .9 .6 .4 - - 88,553
Russian 1.2 2.0 1.7 2.0 2.5 405,280
Federation/5/
Slovakia - - - - - 3,949
Ukraine - - - - - 1,031
5.6 7.5 6.2 5.2 5.6 1,457,919
Other Markets
Botswana - - - - - 4,048
Egypt .1 .1 .8 - - 179,407
Estonia - .1 .1 - - 17,407
Ghana .1 .1 .1 - - 14,521
Greece 2.6 1.5 1.1 6.2 6.5 261,233
Israel .3 1.8 2.4 2.9 4.1 570,970
Kenya - - - - - 333
Mauritius .1 - - - - 7,316
Morocco .3 .2 .1 - - 31,373
Nigeria .1 - - - - 7,055
Portugal .9 .1 .2 - - 36,517
South Africa 4.7 5.6 6.5 11.0 10.8 1,514,065
Turkey 3.9 5.2 9.8 2.1 4.1 2,303,522
13.1 14.7 21.1 22.2 25.5 4,947,767
Multinational 1.9 2.6 2.7 641,197
Other/6/ 1.2 3.3 2.4 551,105
Cash & Equivalents 12.1 3.4 2.4 552,266
TOTAL 100.0% 100.0% 100.0% $23,419,675
</TABLE>
/1/Morgan Stanley Capital International Emerging Markets Free (EMF) Index also
includes Jordan (0.1% at 12/31/99 and 6/30/99). 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.
/3/In September 1998, South Korea's weighting in the index was increased to
reflect 100% of that country's market capitalization instead of 50%.
/4/In September 1996, Taiwan was added to the index; its weighting reflects 50%
of that country's market capitalization.
/5/Includes investments in companies incorporated outside the region that have
significant operations in the region.
/6/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 of side bar]
Many of them - Samsung Electronics and Taiwan Semiconductor are good examples -
have become global competitors that happen to be based in a developing country.
Others are world-class local or regional companies - Telmex is a case in point
- - that compete effectively with multinationals in their local market.
[begin side bar]
Percent Change In Key Markets/1/
<TABLE>
<CAPTION>
Six Months Ended 12/31/99
Expressed in Expressed in
U.S. Dollars Local Currency
<S> <C> <C>
Argentina 7.6% 7.6%
Brazil (Free)/2/ 40.9 45.0
Chile 8.0 10.3
China (Free)/2/ -30.5 -30.4
Colombia 4.3 11.5
Czech Republic 0.1 2.0
Greece 25.3 31.1
Hungary 22.4 28.5
India 36.9 37.4
Indonesia (Free)/2/ -8.3 -6.1
Israel 27.2 29.5
Jordan 5.0 4.8
Malaysia (Free)/2/,/3/ 20.8 2.7
Mexico (Free)/2/ 18.2 19.7
Pakistan 40.0 40.8
Peru -0.8 3.6
Philippines (Free)/2/ -18.8 -14.0
Poland 0.5 6.0
Russia 48.5 -/4/
South Africa 20.8 23.2
South Korea 8.2 5.9
Sri Lanka 21.0 20.4
Taiwan 7.3 4.2
Thailand (Free)/2/ -7.0 -5.3
Turkey 142.7 212.0
Venezuela -5.9 0.7
Emerging Markets
Growth Fund 29.9
</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/In November 1998, Malaysia was removed from the index.
/4/Index is quoted in U.S. dollars only.
[end side bar]
We are encouraged, too, by the economic outlook for most of the countries
represented in our portfolio. In our judgment, their longer term prospects have
never been in question. Now the near term outlook has brightened as well.
Business conditions, while not yet back to normal, have generally improved,
although the situation still varies from country to country. Having shaken off
the worst effects of the maelstrom that engulfed emerging markets in 1997 and
1998, several governments are going through economic and financial
restructurings and making serious efforts to initiate reforms that could lead
to greater stability in the future.
Our perception of the fund's investment universe remains the same as it was
prior to the turbulent '90s. We expect that most countries will continue to be
characterized by impressive growth and offer potentially attractive investment
opportunities that require intensive research. At the same time, our feeling is
that many of these markets will remain highly volatile and vulnerable to sudden
political changes, severe currency fluctuations and other shocks.
As we move into the new millennium, our plan is to continue researching
companies aggressively, paying close attention to valuations and making every
effort to capitalize on periodic price weakness in the marketplace. We believe,
as strongly today as when the fund began, that patient investors who maintain a
long-range perspective on their holdings should continue to be amply rewarded.
We have now had six months of experience with EMGF's new status as an open-end
interval fund. This change has provided shareholders with an opportunity to
redeem shares each month. From our standpoint, the open-end interval
arrangement is off to a satisfactory start, with only moderate redemption
activity. We hope you feel the same way. Additionally, the fund's controlled
growth policy, which has been in place each year since 1993, continues to work
well.
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
February 4, 2000
Here are the total returns and annual compound returns with all distributions
reinvested for periods ended December 31, 1999 - 10 years: +349.39%, or +16.21%
a year; 5 years: +58.32%, or +9.62% a year; 12 months: +77.93%.
PAST RESULTS ARE NOT PREDICTIVE OF FUTURE RESULTS. SHARE PRICES AND RETURNS
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 FUND'S PROSPECTUS.
<PAGE>
THE INVESTMENT LANDSCAPE
The geographic distribution of assets found in Emerging Markets Growth Fund's
portfolio rarely reflects any determination on our part to invest more in one
country or region. More often, it is the result of buy and sell decisions made
on a stock-by-stock basis, based on intensive, proprietary research. We look
for good companies, wherever they are. While the emphasis of our 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 six largest areas of
concentration on December 31. The six account for about 60% of net assets.
(Percentage changes for markets and stock prices are in U.S. dollars unless
otherwise indicated.)
MEXICO (12.7% OF NET ASSETS)
Our largest single area of concentration, Mexico is recovering from the
region's long recession. Employment and real wages have been rising. After
experiencing increased inflationary pressures and a weaker peso in 1998,
inflation has come down and the peso has been stable. Importantly, interest
rates have continued to decline despite an opposite trend in the United States,
which remains the country's biggest market for exports.
Francisco Labastida, the Institutional Revolutionary Party (PRI) candidate for
the July presidential election, has made a good showing so far in the polls. A
concerted effort is being made to engineer a smooth election without the
uneasiness over the peso that has characterized Mexican elections in the past.
Meantime, President Zedillo's administration is in the process of trying to
organize trade agreements with Japan and the major European countries - a move
aimed partly at dispelling fears of an overdependence on NAFTA-based commerce
with the U.S.
A key point to bear in mind about the economic recovery is that it is being
driven to a considerable extent by the private sector. In the past, the primary
driving force often has been rising oil and commodity prices. While higher
petroleum prices this past year benefited the government's finances, which
remain heavily dependent on revenues from oil, other forces have had stronger
impacts on the overall economy.
In this economic environment, the Mexican stock market has thrived, gaining 18%
during the July-December period. Emerging Markets Growth Fund's largest Mexican
holding, Telmex, rose 39%. Another sizable holding that did very well during
the period was Grupo Televisa, which went up 52%; Televisa is Mexico's leading
media company and the world's biggest producer of Spanish-language broadcasts.
SOUTH KOREA (10.9% OF NET ASSETS)
South Korea led Asia out of its severe slump more than a year ago, and its
economy continues to perform admirably. Exports are increasing and the growth
of gross domestic product is back on a faster track. Central to the country's
progress has been a significant amount of corporate and financial sector
restructuring. To accommodate it, monetary policy has kept short-term interest
rates relatively low. The government also has put together a bond market
stabilization package to cope with the aftermath of the Daewoo crisis,
involving massive debt relief for the country's second-largest conglomerate.
The South Korean stock market climbed dramatically from 1998 to the middle of
1999. For the six months ended December 31, the gain was a more modest 8%. The
relatively new KOSDAQ market, meanwhile, climbed 43%. Perhaps the main
long-term impact of the buying interest shown in KOSDAQ stocks is the
opportunity it provides for new entrepreneurial companies to gain access to
equity capital.
The market's rise and the country's economic advance over the past year and a
half have been paced chiefly by technology companies. On December 31, the fund
owned shares in 21 Korean companies - almost half of which are technology
related. Several of our Korean holdings recorded substantial gains for the
fiscal half-year. The largest position, Samsung Electronics, exemplifies the
type of globally competitive enterprise that appears throughout the portfolio.
The world's biggest manufacturer of computer memory chips, Samsung has
thoroughly restructured its workforce and the way it does business. The fund
first began acquiring shares in 1991 and we have expanded our investment
considerably since then. Currently our second-largest holding, Samsung soared
120% for the six months.
TURKEY (9.8% OF NET ASSETS)
Two devastating earthquakes, in August and November, took a huge toll in lives
and inflicted an estimated $25 billion of damage in Turkey. The impact of the
quakes helped the three-party coalition government, which took office in June,
reach agreement on long-discussed major economic reforms.
Other significant developments during the half-year included a decision to
privatize state-owned telephone and oil companies. The government also
authorized international arbitration for disputes between the state and foreign
investors and cut social security costs by raising the retirement age.
In December, the International Monetary Fund (IMF) expressed its approval of
the country's economic program, announcing a $4 billion standby loan agreement.
This gave the government confidence to establish a nominal anchor for its
currency, a move that was made to help reduce inflation and combat the
recession by lowering interest rates and encouraging consumption. We expect
that the beneficiaries will include large retail banks able to operate very
profitably in a lower interest rate environment. Emerging Markets Growth Fund
owns shares in four banks, all of which recorded huge gains for the fiscal
half-year - Turkiye Is Bankasi (+170%), Yapi ve Kredi Bankasi (+114%),
Turkiye Garanti Bankasi (+103%) and Akbank Turk (+101%).
We also anticipate that well-managed consumer goods companies are likely to
benefit from lower rates. In that category, our investments include Koc
Holding, a conglomerate that makes a wide range of products, from autos to
appliances (+194%); and Migros Turk, a supermarket chain (+56%).
The Turkish market has a history of fluctuating widely. A year ago, it was one
of the weakest markets represented in our portfolio. The 143% gain for the
final six months of 1999 was fueled by lower interest rates, positive economic
reforms, low valuations relative to the earnings outlook and by the prospect of
membership in the European Union.
BRAZIL (9.6% OF NET ASSETS)
Brazil has made encouraging progress in recent months. The economy shows clear
signs of emerging from recession. Industrial and telecommunications companies
have stepped up their hiring. Real interest rates have come down, exports have
increased, and the current-account deficit has narrowed. Although from time to
time inflationary pressures have threatened to intensify, the runaway inflation
predicted in some quarters after Brazil's devaluation a year ago has not
materialized. In fact, the devaluation has helped the global competitiveness of
numerous manufacturers. Responding to favorable economic developments, the real
strengthened during the latter part of the July-December fiscal period, as did
the Brazilian stock market; for the six months it registered a gain of 41%.
Capitalizing on the upswing in share prices, the fund has continued to take
profits in a number of Brazilian holdings that have been in the portfolio for
some time. This has had the effect of reducing our overall exposure in Brazil;
as recently as 1998, it was our largest single area of concentration.
We remain very positive about the long-term outlook for the country and
continue to research investment opportunities there aggressively. Currently,
the fund owns shares in 34 Brazilian companies, nearly all of which recorded
gains for the half-year. These holdings include Banco Itau (+67%), one of the
country's biggest banks; Cervejaria Brahma (+24%), Latin America's largest
brewer; and several firms spun off from Telecomunicacoes Brasileiras (Telebras)
at the time of its privatization in 1998.
The major challenges confronting Brazil have not changed. At the top of the
list: accelerating the pace of growth while keeping inflation under control,
maintaining a stable currency and reforming the country's pension system and
tax code. There is concern that reforms may prove difficult to achieve in a
highly charged political atmosphere leading up to municipal elections in
October.
President Cardoso's administration has been playing a key role in the effort
under way to promote recovery and greater economic stability throughout Latin
America. An important focus of this endeavor is the stimulation of trade within
Mercosur, the region's principal trading block. Exports not only in Brazil but
also in other Mercosur countries have fallen significantly during the
recession.
TAIWAN (9.1% OF NET ASSETS)
The crippling earthquake that struck Taiwan this past September caused computer
equipment factories to stop production for several weeks. Since then, the
country in general and its chip manufacturing industry in particular have been
recovering from the quake somewhat faster than many experts had predicted. At
most factories, production was back on schedule or close to it before the end
of 1999. The expectation now is that the country could be given an economic
boost as the result of the massive reconstruction effort that will be needed to
repair damaged buildings, bridges and other structures.
The Taiwanese stock market - which is dominated by semiconductor and other
technology firms - also has rallied since declining in the aftermath of the
quake. For the July-December period, it rose 7%. Its upward movement was helped
by a government decision in November to ease investment restrictions for
foreign fund investors. This had the effect of doubling the limits on foreign
investment and was a response to Morgan Stanley Capital International's
decision to double the weighting of Taiwan shares in the EMF Index by May 31,
2001.
Emerging Markets Growth Fund holds shares in 18 Taiwanese companies, mainly
technology-related. Taiwan Semiconductor - the world's largest semiconductor
foundry - which we first began acquiring in 1995, remains our biggest Taiwanese
investment; the stock was up 41% for the half-year. Two other substantial
technology investments are Advanced Semiconductor Engineering (+16%), which
manufactures testing equipment; and Asustek, a producer of computer
motherboards, notebook computers and telecommunications equipment; its shares
declined 6% for the period.
INDIA (7.8% OF NET ASSETS)
Historically, domestic demand has driven India's economy and its stock market.
Until 1992, no foreign investment was allowed. These days, however, encouraging
foreign investors is becoming a high priority. As part of its successful
campaign platform, the recently re-elected Bharatiya Janata Party (BJP)
government -the nation's first continuing majority - has said it will speed
privatization of state-owned companies and open the insurance industry to
outsiders. It also has vowed to make investments in Indian companies more
attractive by cutting the nation's budget deficit and improving its physical
infrastructure.
These welcome sentiments, coupled with lower inflation, helped push the Indian
market up 37% for the six months ended December 31. Among major holdings that
did astonishingly well: Infosys (+298%), which provides low-cost, quality
software to corporations around the world; and Zee Telefilms (+648%), the
nation's leading producer of Hindi television programming. Zee is also a
dominant force in cable and satellite TV, and plans to leverage this business
to provide Internet services to nearly 5 million customers.
Looking ahead, it would appear that prospects for the Indian market will depend
heavily on the BJP's progress toward achieving its goals. Ongoing troubles with
Pakistan - seen again in the week-long Air India hijacking drama at the end of
December - could prove to be a distraction. Likewise, state elections early
next year may slow reformist zeal if voters indicate distaste for measures such
as cutting social spending and closing inefficient plants.
<PAGE>
ABOUT THE FUND AND ITS ADVISER
Emerging Markets Growth Fund was organized nearly 15 years ago 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 over 40
nations. As the fund has grown, its adviser has steadily expanded its research
activities in developing countries and devoted increased resources to the task
of managing emerging markets investments.
Capital International, Inc., a subsidiary of Capital Group 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 counselors, 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 hundreds of firms based in less-developed countries. Currently more
than 30 analysts cover emerging markets, compared with four when EMGF began.
This extensive research effort combines intensive company and industry analysis
with a political and macroeconomic overview, and we believe it has given our
family of companies - and the funds they manage, including Emerging Markets
Growth Fund - an important competitive edge.
EMERGING MARKETS GROWTH FUND
Investment Portfolio, December 31, 1999
<TABLE>
<S> <C> <C> <C> <C> <C>
Equity Securities
Common Preferred Convertible Percent of
Industry Diversification Stocks Stocks Bonds Bonds Net Assets
Diversified Telecommunications 13.90% 1.07% - 0.04% 15.01%
Services
Electronic Components 13.22 0.16 - - 13.38
Banking 11.22 1.78 - - 13.00
Beverages & Tobacco 5.17 1.57 - - 6.74
Wireless Telecommunication 3.32 1.81 - 0.01 5.14
Services
Energy Sources 4.19 0.36 0.08% - 4.63
Broadcasting & Publishing 3.53 0.01 - 0.02 3.56
Other Industries 33.02 1.66 0.33 1.18 36.19
87.57% 8.42% 41.00% 1.25% 97.65
Short Term Securities 2.81
Excess of payables over (0.46)
cash and receivables
Net Assets 100.00%
</TABLE>
<TABLE>
Emerging Markets Growth Fund
Investment Portfolio, December 31, 1999
<S> <C> <C> <C>
Number of (Unaudited)
Shares or Market Percent
EQUITY SECURITIES Principal Value of Net
(Common and preferred stocks, convertible Amount (000) Assets
debentures, and options)
- -------------------------------------------- -------- -------- --------
ARGENTINA - 2.86%
Banco de Galicia y Buenos Aires SA, Class B 3,469,530 $17,246
Banco de Galicia y Buenos Aires SA, Class B (ADR) 4,366,249 86,506 0.44
Banco Frances del Rio de la Plata SA 743,100 5,871
Banco Frances del Rio de la Plata SA (ADR) 955,410 22,631 0.12
Banco Rio de la Plata SA, Class B (ADR) 3,993,600 48,672 0.21
BI SA (acquired 10/21/93, cost: $5,755,000) (1) 6,130,000 7,613 0.03
CEI Citicorp Holdings SA, Class B (2) 120,770 441 0.00
Hidroneuquen SA (acquired 11/11/93, cost: 28,047,311 14,034 0.06
$29,111,000) (1) (2)
IRSA Inversiones y Representaciones SA (3) 6,645,364 21,535
IRSA Inversiones y Representaciones SA (GDR) (3) 884,428 28,523
IRSA Inversiones y Representaciones SA $3,400,000 3,740 0.23
4.5% convertible bond August 2, 2003 (acquired
5/28/97, cost: $3,982,000) (1)(3)
Nortel Inversora SA, Class A preferred, (ADR) 625,231 8,153
(acquired 11/24/92, cost: $4,136,000) (1)
Nortel Inversora SA, Class B preferred, (ADR) 1,630,740 31,596 0.17
Quilmes Industrial SA, preferred shares (ADR) 2,157,900 25,760 0.11
Telecom Argentina STET-France Telecom SA, Class B 2,830,865 19,480
Telecom Argentina STET-France Telecom SA, 3,806,200 130,362 0.64
Class B (ADR)
Telefonica de Argentina SA, Class B (3) 4,687,600 14,393
Telefonica de Argentina SA, Class B (ADR) (3) 5,944,900 183,549 0.85
-------------------
670,105 2.86
-------------------
BOTSWANA - 0.02%
Sechaba Breweries Ltd. 3,577,700 4,048 0.02
-------------------
BRAZIL - 9.18%
Banco Itau SA, preferred nominative 4,384,517,000 376,718 1.61
Banco Nacional SA, ordinary nominative (2) 2,500,000 -
Banco Nacional SA, preferred nominative (2) 215,940,814 - 0.00
Banco Real de Investimento SA, preferred nominative 4,694,000 7,312 0.03
Bompreco SA Supermercados do Nordeste, 524,800 3,937 0.02
preferred nominative (GDR)
Brasmotor SA, preferred nominative 27,624,932 3,879 0.02
Cia. Cervejaria Brahma, ordinary nominative (ADR) 11,224 105
Cia. Cervejaria Brahma, preferred nominative (ADR) 18,301,060 256,215 1.10
Cia. de Eletricidade do Estado do Rio de Janeiro - 34,071,062,325 10,388 0.04
CERJ, ordinary nominative (2)
Cia. de Tecidos Norte de Minas - COTEMINAS, 2,777,384 162
ordinary nominative
Cia. de Tecidos Norte de Minas - COTEMINAS, 535,000 2,408
ordinary nominative (GDR)
Cia. de Tecidos Norte de Minas - COTEMINAS, 98,562,466 9,014 0.05
preferred nominative
Cia. Energetica de Minas Gerais - CEMIG, 4,181,101 93,552
preferred nominative (ADR)
Cia. Energetica de Minas Gerais - CEMIG, 446,426 9,989 0.44
preferred nominative (ADR) (acquired 6/21/96,
cost: $9,168,000)(1)
Cia. Paranaense de Energia - COPEL, Class B, 703,398 6,550 0.03
preferred nominative (ADR)
Cia. Vale do Rio Doce, ordinary nominative 89,700 2,088
Cia. Vale do Rio Doce, preferred nominative (ADR) 5,638,037 155,046 0.67
Consorcio Real Brasileiro de Administracao SA, 1,429,000 1,465 0.01
Class F, preferred nominative
Embratel Participacoes SA, preferred nominative 3,656,715 99,645 0.43
GP Capital Partners, LP (acquired 1/28/94, 27,000 16,584 0.07
cost: $18,651,000)(1)
Itausa - Investimentos Itau SA 88,905,000 92,158 0.39
Petroleo Brasileiro SA - PETROBRAS 3,324,780 83,951 0.36
REALPAR Participaco, Class A, preferred nominative 3,000 3 0.00
REAL SA Participaco e Administracao, Class A, 3,000 3 0.00
preferred nominative
SA White Martins 18,212,078 12,821 0.06
Souza Cruz SA, ordinary nominative 2,996,300 22,190 0.10
Tele Celular Sul Participacoes SA, ordinary 154,223,600 336
nominative (2)
Tele Celular Sul Participacoes SA, preferred 1,300,900 41,304 0.18
nominative (ADR)
Tele Centro Oeste Celular Participacoes SA, 3,092,000 5
ordinary nominative
Tele Centro Oeste Celular Participacoes SA, 4,067,425 26,438 0.11
preferred nominative (ADR)
Tele Centro Sul Participacoes SA, preferred 61,800 5,608 0.02
nominative (ADR)
Telecomunicacoes Brasileiras SA 511,300 65,702
Telecomunicacoes Brasileiras SA, preferred 200 781 0.28
nominative (ADR), purchased call option, expires
February 1, 2000 (2)
Telecomunicacoes de Sao Paulo SA - Telesp, 36,190,561 1,946
ordinary nominative (2)
Telecomunicacoes de Sao Paulo SA - Telesp, 778,190,710 61,686 0.27
preferred nominative (2)
Tele Leste Celular Participacoes SA, ordinary 3,435,300 2
nominative (2)
Tele Leste Celular Participacoes SA, preferred 281,647 11,970 0.05
nominative (ADR)
Telemig Celular Participacoes SA, ordinary 9,071,600 18
nominative (2)
Telemig Celular Participacoes SA, preferred 923,158 42,638
nominative (ADR)
Telemig Celular Participacoes SA, Class C, 385,295,000 7,035 0.21
preferred nominative (2)
Tele Nordeste Celular Participacoes SA, ordinary 3,092,000 6
nominative (2)
Tele Nordeste Celular Participacoes SA, preferred 462,201 23,341 0.10
nominative (ADR)
Tele Norte Celular Participacoes SA, ordinary 8,728,300 8
nominative (2)
Tele Norte Celular Participacoes SA, preferred 126,642 5,438 0.02
nominative (ADR)
Tele Norte Leste Participacoes SA, ordinary 342,700 6
nominative (2)
Tele Norte Leste Participacoes SA, preferred 309,000 7,880 0.03
nominative (ADR)
Telesp Celular Participacoes SA, ordinary nominative 26,137,300 248
Telesp Celular Participacoes SA, preferred 4,793,930 203,143 0.87
nominative (ADR)
Telesp Participacoes SA, ordinary nominative (2) 97,424,516 1,329
Telesp Participacoes SA, preferred nominative (2) 1,276,369,452 30,070
Telesp Participacoes SA, preferred nominative (ADR) (2) 2,324,769 56,812 0.38
Tele Sudeste Celular Participacoes SA, ordinary 148,587,600 593
nominative (2)
Tele Sudeste Celular Participacoes SA, preferred 1,095,594 42,523 0.18
nominative (ADR)
Unibanco-Uniao de Bancos Brasileiros SA, units (2) 1,302,252,000 86,624
Unibanco-Uniao de Bancos Brasileiros SA, units (GDR) 5,316,650 160,164 1.05
-------------------
2,149,837 9.18
-------------------
CHILE - 1.79%
Antofagasta Holdings PLC 4,905,330 34,074 0.15
Compania Cervecerias Unidas SA (ADS) 1,274,500 40,864 0.17
Compania de Telecomunicaciones de Chile SA (ADR) 5,658,254 103,263 0.44
Distribucion y Servicio D&S SA (ADR) 1,715,700 33,242 0.14
Embotelladora Andina SA, Class A, preferred (ADR) 3,178,650 56,620
Embotelladora Andina SA, Class B, preferred (ADR) 2,067,200 30,233 0.37
Empresa Nacional de Electricidad SA (ADR) 6,614,718 93,846 0.40
Linea Aerea Nacional Chile SA (ADS) 1,019,700 7,711 0.03
Santa Isabel SA (ADR) (2) (3) 1,171,100 11,418 0.05
Sociedad Quimica y Minera de Chile SA, Class A (ADR) 15,125 476
Sociedad Quimica y Minera de Chile SA, Class B (ADR) 261,600 8,257 0.04
-------------------
420,004 1.79
-------------------
CHINA - 0.65%
China Eastern Airlines Corp. Ltd., Class H (2) 41,520,000 4,914
China Eastern Airlines Corp. Ltd., Class H (ADR) (2) 175,700 1,977 0.03
China Telecom (Hong Kong) Ltd. (2) 14,517,900 90,772 0.39
Huaneng Power International, Inc., Class N (ADR) (2) 1,498,800 15,831 0.07
Jiangsu Expressway Co. Ltd. (2) (3) 91,034,000 14,874 0.06
Ng Fung Hong Ltd. 21,698,500 11,166 0.05
Shandong International Power Development 85,561,000 12,10 0.05
Co. Ltd. (Hong Kong) (2) (3)
-------------------
151,642 0.65
-------------------
REPUBLIC OF CROATIA - 0.38%
PLIVA d.d. (GDR) 6,730,088 87,827 0.38
-------------------
CZECH REPUBLIC - 0.46%
CESKE RADIOKOMUNIKACE AS (GDR) (2) 1,178,300 43,008 0.18
SPT TELECOM, a.s. (2) 4,023,940 64,986 0.28
-------------------
107,994 0.46
-------------------
ECUADOR - 0.00%
La Cemento Nacional SA (GDR) 2,376 119 0.00
-------------------
EGYPT - 0.77%
AL-Ahram Beverages Co. (GDR) (3) 1,049,600 20,730 0.09
Mobinil - Egyptian Mobile Services (2) 3,459,000 158,677 0.68
-------------------
179,407 0.77
-------------------
ESTONIA - 0.07%
AS Eesti Telekom (GDR) 845,000 17,407 0.07
-------------------
GHANA - 0.06%
Ashanti Goldfields Co. Ltd. 698,714 2,096
Ashanti Goldfields Co. Ltd. (GDR) 170,747 448
Ashanti Goldfields Co. Ltd. 5.50% exchangeable $15,970,000 11,977 0.06
note March 15, 2003
-------------------
14,521 0.06
-------------------
GREECE - 1.12%
Alpha Credit Bank (2) 448,100 35,234 0.15
Aluminium de Grece SAIC 454,865 22,149 0.10
Hellenic Bottling Co. SA 3,369,910 78,371 0.34
Hellenic Telecommunications Organization SA 6,723,000 80,256 0.34
Panafon Hellenic Telecommunications Co. SA 198,600 2,677 0.01
Stet Hellas Telecommunications SA (ADR) (2) 1,394,950 42,546 0.18
-------------------
261,233 1.12
-------------------
HONG KONG - 1.28%
China Resources Enterprise, Ltd. 14,196,800 22,739 0.10
COSCO Pacific Ltd. 65,751,000 54,560 0.23
First Pacific Co. Ltd. 86,492,635 66,763 0.29
Legend Holdings Ltd. 61,699,100 153,196 0.65
New World China Land Ltd. (Cayman Islands) (2) 5,413,400 2,002 0.01
-------------------
299,260 1.28
-------------------
HUNGARY - 1.99%
Gedeon Richter Ltd. 656,300 43,154 0.18
Graboplast Textil- es Muborgyarto Rt (2) 141,200 1,285 0.01
Magyar Tavkozlesi Rt. 35,128,660 245,995
Magyar Tavkozlesi Rt. (ADR) 1,417,500 51,030 1.27
MOL Magyar Olaj- es Gazipari Rt. (3) 5,153,891 107,050
MOL Magyar Olaj- es Gazipari Rt. (GDR) (3) 824,800 17,321 0.53
-------------------
465,835 1.99
-------------------
INDIA - 7.82%
Asea Brown Boveri Ltd. 513,950 2,954 0.01
Asea Brown Boveri Management Ltd. (2) 513,950 436 0.00
Asian Paints (India) Ltd. 231,300 1,968 0.01
Bajaj Auto Ltd. 4,808,150 36,373
Bajaj Auto Ltd. (GDR) 436,800 4,204 0.17
Bharat Petroleum Corp. Ltd. 5,017,700 45,297 0.19
Carrier Aircon Ltd. 911,500 2,515 0.01
Castrol India Ltd. 4,329,200 30,376 0.13
Credit Rating Information Services of India 15,000 236 0.00
Cummins India Ltd. 1,850,000 24,332 0.10
Essar Steel Ltd. (2) 300 0 0.00
Essel Packaging Ltd. 17,000 235 0.00
Flex Industries Ltd. (2) 88,998 46 0.00
Grasim Industries Ltd. 62 1 0.00
HDFC Bank Ltd. (2) 5,335,452 19,556 0.08
Hindustan Lever Ltd. 3,805,300 196,871 0.84
Hindustan Petroleum Corp. Ltd. 5,324,706 22,406 0.10
Housing Development Finance Corp. Ltd. 2,943,000 19,354 0.08
Indian Aluminium Co., Ltd. 100 0 0.00
Indian Rayon and Industries Ltd. 943,875 2,510
Indian Rayon and Industries Ltd. (GDR) 384,200 1,047 0.02
Industrial Credit and Investment Corp. of India Ltd. 3,928,330 8,310 0.04
Infosys Technologies Ltd. 1,345,815 449,211
Infosys Technologies Ltd. (ADR) 8,500 2,805 1.93
Ispat Industries Ltd. 3.00% convertible $3,999,000 880 0.00
Eurobond April 1, 2001
I.T.C. Ltd. 143,547 2,195 0.01
LML Ltd. 5,800 9 0.00
Madras Cements Ltd. 22,000 3,529 0.02
Mahanagar Telephone Nigam Ltd. 28,814,650 127,874
Mahanagar Telephone Nigam Ltd. (GDR) 734,600 8,33 0.58
Mahindra & Mahindra Ltd. 2,505,516 24,197
Mahindra & Mahindra Ltd. (GDR) 1,013,566 11,302 0.15
Master Gain Scheme (2) 75,400 24 0.00
Max India Ltd. 109,847 821
Max India Ltd. 12.50% nonconvertible INR 41,957 211 0.00
debenture March 2, 2004 (2)
Motor Industries Co. Ltd. 127,150 14,618 0.06
Nicholas Piramal India Ltd. (3) 1,885,700 32,459 0.14
Ranbaxy Laboratories Ltd. 2,335,900 49,575
Ranbaxy Laboratories Ltd. (GDR) 1,158,950 25,612 0.32
Raymond Woollen Mills Ltd. 200 0 0.00
Reliance Industries Ltd. 14,347,985 77,101
Reliance Industries Ltd. (GDR) 811,050 11,760 0.38
Satyam Computer Services Ltd. 323,500 16,358 0.07
Smithkline Beecham Corp. (USA) 1,262,700 15,025 0.07
State Bank of India 6,779,650 35,036
State Bank of India (GDR) 2,600 32 0.15
Tata Engineering and Locomotive Co. Ltd. 77,400 358 0.00
Tata Infotech Ltd. (2) 307,500 6,241 0.03
Tata Iron & Steel Co. Ltd. 1,282,700 4,176 0.02
TVS-Suzuki Ltd. 406,950 5,044 0.02
United Phosphorus Ltd. 300 1 0.00
Videsh Sanchar Nigam Ltd. 1,247,264 51,851
Videsh Sanchar Nigam Ltd. (GDR) 1,429,250 35,445 0.38
Wipro Corp. Ltd. 3,448,020 206,199 0.88
Zee Telefilms Ltd. 7,745,000 194,613 0.83
-------------------
1,831,927 7.82
-------------------
INDONESIA - 2.68%
APP Finance (VI) Mauritius Ltd. 0% convertible $38,000 7
preferred bond November 18, 2012
APP Finance (VII) Mauritius Ltd. 3.50% convertible $6,180,000 4,511
bond April 30, 2003 (acquired 4/23/98, cost:
$6,180,000) (1)
APP Finance (VII) Mauritius Ltd. 3.50% convertible $88,000 64 0.02
bond April 30, 2003
APP Global Finance (V) Ltd. 1.75% convertible $150,000 163
bond July 1, 2000 (acquired 7/30/99, cost:
$147,000) (1)
APP Global Finance (V) Ltd. 1.75% convertible $142,000 155 0.00
bond July 1, 2000
Asia Pulp & Paper Co. Ltd (ADR) (2) 10,266,900 80,852
Asia Pulp & Paper Co. Ltd (ADR), warrants, 554,860 520 0.35
expire July 27, 2000 (2)
PT Astra International (2) 114,903,800 61,776 0.26
Gulf Indonesia Resources Ltd. (2) 2,626,200 21,338 0.09
PT Hanjaya Mandala Sampoerna Tbk (2) 44,547,000 113,523 0.48
PT Indah Kiat Pulp & Paper Corp. Tbk (2) 243,671,100 96,071 0.41
PT Indofood Sukses Makmur Tbk (2) (3) 116,668,900 146,359 0.62
PT Indo-Rama Synthetics (2) (3) 36,019,400 8,392 0.04
PT Pabrik Kertas Tjiwi Kimia (2) 11,653,272 3,801
PT Pabrik Kertas Tjiwi Kimia, warrants, expire 410,175 71 0.02
July 15, 2002 (2)
Perusahaan Perseroan (Persero) PT 157,920,540 89,998
Telekomunikasi Indonesia, Class B
Perusahaan Perseroan (Persero) PT 84,564 930 0.39
Telekomunikasi Indonesia, Class B (ADR) -------------------
628,531 2.68
-------------------
ISRAEL - 2.44%
Bank Hapoalim Ltd. 20,855,100 65,067 0.28
Bank Leumi le-Israel B.M. 64,681,500 136,303 0.58
"Bezeq" The Israel Telecommunication Corp. Ltd. (2) 3,753,600 18,734 0.08
ECI Telecom Ltd. 1,031,400 32,618 0.14
First International Bank of Israel Ltd. - (1) 2,967,783 3,936
First International Bank of Israel Ltd. - (5) 1,489,600 10,092 0.06
Galileo Technology Ltd. (2) 1,200,400 28,960 0.12
Koor Industries Ltd. 186,500 18,661 0.08
Matav-Cable Systems Media Ltd. (2) 364,200 10,546
Matav-Cable Systems Media Ltd. (ADR) (2) 171,375 9,940 0.09
Metalink Ltd. (2) 187,000 3,810 0.02
Orbotech Ltd. (3) 1,495,200 115,878 0.49
Partner Communications Co. Ltd. (ADR) (2) 2,958,300 76,546 0.33
Sapiens International Corp. NV (2) (3) 1,629,000 26,777 0.11
Tower Semiconductor Ltd. (2) (3) 1,197,900 13,102 0.06
-------------------
570,970 2.44
-------------------
KAZAKHSTAN - 0.01%
JSC Kazkommertsbank (ADR) (acquired 9/10/97, 151,800 1,193 0.01
cost: $3,585,000)(1) (2)
-------------------
KENYA - 0.00%
Kenya Commercial Bank Ltd. 768,000 333 0.00
-------------------
MALAYSIA - 1.73%
Amway (Malaysia) Holdings Bhd. 1,721,200 4,462 0.02
APM Automotive Holdings Bhd. (2) 568,500 323 0.00
Commerce Asset-Holding Bhd. 22,559,000 57,882 0.25
Guinness Anchor Bhd. 7,028,000 7,768 0.03
Hap Seng Consolidated Bhd. 13,566,100 9,211 0.04
IJM Corp. Bhd. 12,162,714 9,858 0.04
IOI Corp. Bhd. 25,909,500 15,682 0.07
Malayan Banking Bhd. 15,704,800 55,793 0.24
Malaysian Pacific Industries Bhd. 1,042,800 6,723 0.03
Nestle (Malaysia) Sdn. Bhd. 5,548,100 23,944 0.10
Oriental Holdings Bhd. 6,736,820 14,715 0.06
Road Builder (M) Holdings Bhd. (2) 5,888,000 8,406 0.04
Rothmans of Pall Mall (Malaysia) Bhd. 4,293,500 32,766 0.14
Sime Darby Bhd. 29,595,000 37,539 0.16
Sime UEP Properties Bhd. 2,448,700 3,448 0.01
Star Publications (Malaysia) Bhd. 2,365,000 6,659 0.03
Tan Chong Motor Holdings Bhd. 3,790,000 1,596 0.01
Telekom Malaysia Bhd. 10,515,000 40,676 0.17
UMW Holdings Bhd. 6,475,859 12,100
UMW Holdings Bhd., warrants, expire 574,819 393 0.05
January 26, 2000 (2)
Warisan TC Holdings Bhd. (2) 189,500 126 0.00
YTL Corp. Bhd. (2) 37,718,850 53,104 0.23
YTL Power International Bhd. 3,782,400 3,145 0.01
-------------------
406,319 1.73
-------------------
MAURITIUS - 0.03%
State Bank of Mauritius 10,927,000 7,316 0.03
-------------------
MEXICO - 12.48%
Apasco, SA de CV 9,567,645 59,772 0.26
Carso Global Telecom, SA de CV (2) 6,128,400 57,656 0.25
Cemex, SA de CV (2) 26,858,651 150,477
Cemex, SA de CV, ordinary participation 21,361,108 119,676
certificates, units (2)
Cemex, SA de CV, ordinary participation 498,505 13,896
certificates, units (ADR)
Cemex, SA de CV, warrants, expire December 13, 2002 (2) 3,013,000 2,548 1.22
Cifra, SA de CV, Class C (2) 41,813,634 79,738
Cifra, SA de CV, Class V (2) 68,138,691 136,998
Cifra, SA de CV, Class V (ADR) (2) 1,701,712 34,353 1.07
Coca-Cola FEMSA, SA de CV, Class L (ADR) 1,745,600 30,657 0.13
Consorcio International Hospital, SA de CV, 23,970 5,323 0.02
convertible preferred (acquired 9/25/97, cost:
$4,827,000) (1)(2)
Controladora Comercial Mexicana, SA de CV, units 28,172,870 37,822 0.16
Corporacion Interamericana de Entretenimiento, 2,446,100 9,787 0.04
SA de CV (2)
Fomento Economico Mexicano, SA de CV 7,552,600 33,771
(formerly Grupo Industrial Emprex)
Fomento Economico Mexicano, SA de CV (ADR) 3,828,560 170,371 0.87
Grupo Carso, SA de CV, Class A, ordinary 1,837,800 9,170 0.04
participation certificates (2)
Grupo Financiero BBV Probursa, SA de CV, Class B (2) (3) 64,314,331 9,246 0.04
Grupo Financiero Bancomer, SA de CV, MXN5,750,000 607 0.00
Series L2, 25.387% convertible subordinated
debentures May 16, 2002
Grupo Industrial Bimbo, SA de CV 6,713,000 15,008 0.06
Grupo Industrial Maseca, SA de CV, Class B (ADR) 585,200 4,243 0.02
Grupo Mexico, SA de CV, Class B 2,617,300 12,989 0.06
Grupo Televisa, SA, ordinary participation 295,000 9,979
certificates (2)
Grupo Televisa, SA, ordinary participation 5,558,719 379,383
certificates (ADR) (2)
Grupo Televisa, SA (GDR), purchased put option, 570 9 1.66
expires February 1, 2000 (2)
Industrias Penoles, SA de CV (2) 906,200 2,615 0.01
Kimberly-Clark de Mexico, SA de CV 36,075,800 140,146 0.60
Pepsi-Gemex, SA de CV (GDR) (2) 1,178,300 7,585 0.03
Telefonos de Mexico, SA de CV, Class A 9,137,500 51,773
Telefonos de Mexico, SA de CV, Class A (ADR) 71,000 391
Telefonos de Mexico, SA de CV, Class L 13,706,250 76,790
Telefonos de Mexico, SA de CV, Class L (ADR) 11,127,6001,251,855
Telefonos de Mexico, SA de CV (ADR), 200 11 5.90
purchased put option , expires January 21, 2000 (2)
TV Azteca, SA de CV (ADR) 489,785 4,408
TV Azteca, SA de CV (ADR) (acquired 7/2/99, 512,839 4,616 0.04
cost: $2,564,000)(1)
-------------------
2,923,669 12.48
-------------------
MOROCCO - 0.13%
Banque Commerciale du Maroc 35,443 3,527 0.01
Cimenterie de l'Oriental, Class A 100,641 10,267 0.04
ONA SA 56,000 6,521 0.03
Societe des Brasseries du Maroc 23,432 5,014 0.02
Wafabank, Class A 58,000 6,044 0.03
-------------------
31,373 0.13
-------------------
NIGERIA - 0.03%
United Bank for Africa (GDR) (3) 425,000 7,055 0.03
-------------------
PAKISTAN - 0.07%
Chakwal Cement Co. Ltd. (GDR) (2) 891,111 0.00
Engro Chemical Pakistan Ltd. 3,010,668 7,296 0.03
Hub Power Co. Ltd. (GDR) (2) 553,328 5,257 0.02
Pakistan Telecommunication Corp. (GDR) 104,400 3,758 0.02
-------------------
16,311 0.07
-------------------
PERU - 1.12%
Banco Continental 12,533,937 7,541 0.03
Cementos Lima SA 683,611 11,267 0.05
Compania de Minas Buenaventura SA, Class B 995,485 8,062
Compania de Minas Buenaventura SA, Class B (ADR) 1,297,967 20,849 0.13
Credicorp Ltd. (3) 6,719,862 80,638 0.34
Minsur SA-Trabajo 3,752,622 7,758 0.03
Tecsur SA (2) 720,734 164 0.00
Telefonica del Peru SA, Class B (ADR) 9,378,100 125,432 0.54
-------------------
261,711 1.12
-------------------
PHILIPPINES - 1.41%
Ayala Corp. 139,629,309 40,812
Ayala Corp., Class B (GDS) 1,390,435 4,064 0.19
Ayala Land, Inc. 225,691,062 58,950
Ayala Land, Inc. 6.00% convertible bond March 19, 2002 PHP260,000,000 6,144 0.28
Bacnotan Consolidated Industries, Inc. 1,134,200 451
Bacnotan Consolidated Industries, Inc. 5.50% 283,000 102
convertible Eurobond June 21, 2004
Bacnotan Consolidated Industries, Inc. 5.50% $4,983,800 1,794 0.01
convertible bond June 21, 2004 (acquired 6/8/94,
cost: $4,674,000)(1)
Bank of the Philippine Islands 20,319,080 58,632 0.25
Bayan Telecommunications Holdings Corp. 933,940 2,323
(acquired 2/12/98, cost: $2,385,000) (1) (2)
Bayan Telecommunications Holdings Corp., 24,335 61
Class A (acquired 2/12/98, cost: $61,000) (1) (2)
Bayan Telecommunications Holdings Corp., 7,946 20
Class B (acquired 2/12/98, cost: $20,000) (1) (2)
Bayan Telecommunications Holdings Corp., 180,000 8,496 0.05
convertible preferred (acquired 12/22/97,
cost: $9,000,000) (1) (2)
Benpres Holdings Corp. (2) 57,120,300 8,668
Benpres Holdings Corp. (GDR) (2) 6,829,554 19,669 0.12
Fortune Cement Corp. (2) 19,950,000 397 0.00
HI Cement Corp. (2) 99,155,900 3,256
HI Cement Corp., convertible bond May 27, 2000 PHP33,052,000 822 0.02
International Container Terminal Services, Inc. (2) 19,533,588 1,774
International Container Terminal Services, Inc. $3,200,000 3,104 0.02
6.00% convertible bond February 19, 2000
(acquired 2/18/93, cost: $3,200,000) (1)
Manila Electric Co. 854,848 10,127
Manila Electric Co., Class B 2,023,584 5,789 0.07
Metropolitan Bank and Trust Co. 23,508 170 0.00
Philippine Airlines, Inc. (2) 68,631,450 0.00
Philippine Long Distance Telephone Co. 466,000 11,882
Philippine Long Distance Telephone Co. (ADR) 1,334,716 34,536
Philippine Long Distance Telephone Co., 50,664 2,413 0.21
convertible preferred, Series III (GDR)
San Miguel Corp., Class B 2,770,607 3,928 0.02
SM Prime Holdings, Inc. 189,324,500 35,793 0.15
Southeast Asia Cement Holdings, Inc. (2) 686,108 8 0.00
Universal Robina Corp. 30,222,000 5,413 0.02
-------------------
329,598 1.41
-------------------
POLAND - 1.61%
Bank Handlowy w Warszawie SA 1,457,496 21,633
Bank Handlowy w Warszawie SA (GDR) 364,351 5,55 0.12
Bank Przemyslowo-Handlowy SA 430,895 20,867 0.09
Bank Rozwoju Eksportu SA (3) 1,139,937 36,158 0.15
Bank Slaski SA (3) 502,779 34,208 0.15
Elektrim SA (2) 5,374,325 53,353
Elektrim SA 2.00% convertible bond May 30, 2004 DEM9,067,000 4,664
Elektrim SA 3.75% convertible bond July 2, 2004 EUR45,052,000 38,977 0.41
EXBUD SA (2) 54 0.00
KGHM Polska Miedz SA 858,600 5,405
KGHM Polska Miedz SA (GDR) 4,401,800 59,864 0.28
Polifarb Cieszyn-Wroclaw 1,967,667 3,883 0.02
Polski Koncern Naftowy SA (acquired 3/5/99, 4,000,000 24,407 0.10
cost: $13,103,000) (1)
Powszechny Bank Kredytowy SA 767,925 17,571
Powszechny Bank Kredytowy SA (GDR) (2) 4,220 97 0.07
Telekomunikacja Polska SA (GDR) 4,298,100 27,400 0.12
Wielkopolski Bank Kredytowy SA 3,423,003 23,207 0.10
-------------------
377,250 1.61
-------------------
PORTUGAL - 0.16%
TELECEL-Comunicacoes Pessoais, SA 2,097,000 36,517 0.16
TVI Televisao Independente, SA, nonvoting preferred (2) 52 0.00
-------------------
36,517 0.16
-------------------
RUSSIAN FEDERATION - 1.69%
AO Mosenergo Power Generation and 4,015,300 17,667 0.08
Electrification Amalgamation (ADS)
AO Torgovy Dom Gum (Russian Depositary 924,800 925 0.00
Trust Certificate) (2)
Avalon Oil PLC (2)(3) 5,068,000 0.00
Irkutskenergo (ADR) 109,200 395 0.00
Kamaz (2) 4,345,000 413 0.00
Lenenergo (2) 28,336,800 3,400 0.02
Lukinter Finance BV 3.50% convertible bond May 6, 2002 $22,796,000 18,693 0.08
LUKoil Holding (ADR) 5,466,880 284,278
LUKoil Holding, preferred (ADR) 84,300 995 1.21
Moscow City Telephone Network (2) 60,150 5,714 0.03
New Century Capital Partners, LP (acquired 5,256,300 2750 0.01
12/7/95, cost: $5,492,000) (1)(2)(4)
Nizhny Novgorod Sviazinform 780,000 772
Nizhny Novgorod Sviazinform (ADR) 1,110,000 1,675 0.01
RAO Gazprom (ADR) 1,285,330 10,893
RAO Gazprom (ADR) (acquired 10/21/96, cost: 2,026,000 17,170 0.12
$32,910,000)(1)
Russian Telecommunications Development Corp. 380,000
(acquired 12/22/93, cost: $3,800,000) (1) (2)
Russian Telecommunications Development Corp., 620,000 0.00
nonvoting (acquired 12/22/93, cost: $6,200,000)(1) (2)
St. Petersburg Telephone Network JSC (2) 12,913,020 3,487 0.02
Sibir Energy PLC (2) 67,031 6 0.00
StoryFirst Communications Inc., Class B 10,383 3,114 0.01
convertible preferred (acquired 10/14/97,
cost: $14,848,000)(1) (2)
Unified Energy System of Russia 193,919,700 23,270
Unified Energy System of Russia (GDR) 124,200 1,056 0.10
-------------------
396,673 1.69
-------------------
SLOVAKIA - 0.02%
VSZ, AS (2) (3) 1,155,249 3,949 0.02
-------------------
SOUTH AFRICA - 6.47%
African Oxygen Ltd. 14,210,914 30,770 0.13
Bidvest Group Ltd. 2,993,195 29,286 0.13
Coronation Holdings Ltd. (3) 584,900 13,293
Coronation Holdings Ltd., Class N (3) 4,496,820 103,077 0.50
De Beers Consolidated Mines Ltd. 1,714,000 49,599 0.21
Edgars Consolidated Stores Ltd. (formerly 239 3 0.00
Edgars Stores Ltd.)
Energy Africa Ltd. (2) 4,149,000 10,470 0.05
Gencor Ltd. 8,553,500 37,250 0.16
Hudaco Industries Ltd. (2) 17,000 26 0.00
International Pepsi-Cola Bottler Investments 17,784 728 0.00
(acquired 12/18/95, cost: $1,678,000)(1) (2)
Iscor Ltd. (3) 14,953,467 56,722 0.24
JD Group Ltd. 3,081,246 26,586 0.11
M-Cell Ltd. 43,380,400 168,084 0.72
M-Web Holdings Ltd. (2) 7,700,800 4,827 0.02
Metro Cash and Carry Ltd. (3) 92,481,455 105,392 0.45
MIH Holdings Ltd. (2) 4,258,600 24,266 0.10
Nasionale Pers Beperk (3) 11,334,800 107,028 0.46
Old Mutual PLC (2) 56,517,300 154,294 0.66
Rembrandt Group Ltd. 4,886,800 46,621 0.20
Sage Group Ltd. 3,166,980 12,194 0.05
Sasol Ltd. 24,956,817 210,868 0.90
South Africa Capital Growth Fund, LP, Class A 2,180 1,428
(acquired 8/25/95, cost: $1,399,000)(1)(4)
South Africa Capital Growth Fund, LP, Class D 13,650 8,943 0.04
(acquired 8/25/95, cost: $8,554,000)(1)(4)
South African Breweries PLC 27,668,485 281,977 1.21
South African Private Equity Fund III, 30,333 30,333 0.13
(acquired 9/23/98, cost: $30,333,000)(1)(2)(4)
-------------------
1,514,065 6.47
-------------------
SOUTH KOREA - 10.85%
Anam Semiconductor, Inc. (formerly Anam 1,783,441 13,073 0.06
Industrial Co. Ltd.) (2)
Hansol Paper Co., Ltd. 1,156,377 10,443 0.04
Hyundai Electronics Industries Co., Ltd. (2) 4,812,781 102,192 0.44
Hyundai Industrial Development & Construction Co. Ltd. 2,452,274 18,149 0.08
Hyundai Motor Co. (2) 4,338,764 68,809
Hyundai Motor Co. (GDR) 6,953,746 75,275
Hyundai Motor Co., nonvoting preferred (GDR) 1,228,684 5,468 0.64
Keumkang Ltd. (2) (3) 373,200 17,263 0.07
Korea Telecom Corp. 109,150 17,214
Korea Telecom Corp. (ADR) 1,887,500 141,091 0.68
Korea Zinc Co. Ltd. (3) 1,177,012 29,814 0.13
LG Electronics Inc. 1,132,020 46,877
LG Electronics Inc., nonvoting preferred (GDR) 216,150 2,232 0.21
Mirae Corp. 132,429 1,030 0.00
Pohang Iron & Steel Co., Ltd. (2) 1,818,795 210,323
Pohang Iron & Steel Co., Ltd. (ADR) 2,766,650 96,833 1.31
Samsung Co., Ltd. (2) 2,880,570 43,145 0.18
Samsung Display Devices (3) 2,459,136 102,265
Samsung Display Devices (GDR) (3) 2,318,740 24,05 0.54
Samsung Electro-Mechanics Co. (2) 2,561,840 170,413 0.73
Samsung Electronics Co., Ltd. 3,066,170 718,591
Samsung Electronics Co., Ltd. (GDS) 2,659,637 325,140
Samsung Electronics Co., Ltd., nonvoting preferred 100,923 15,739
Samsung Electronics Co., Ltd., nonvoting preferred (GDS) 264,441 20,891 4.61
Samsung Fire & Marine Insurance 348,500 11,115 0.05
Seoul Asia Index Trust (International Depositary 80 258 0.00
Receipts)
Shinhan Bank 2,524,900 27,362
Shinhan Bank (GDR) 2,476,980 46,938 0.32
Shinsung ENG (2) (3) 1,538,270 9,623 0.04
SK Telecom Co., Ltd. 16,126 57,826
SK Telecom Co., Ltd. (ADR) 1,413,871 54,257 0.48
Trigem Computer Inc. 510,012 56,618 0.24
-------------------
2,540,324 10.85
-------------------
SRI LANKA - 0.02%
Asian Hotels Corp. Ltd. (2) 7,335,000 695 0.00
Development Finance Corp. of Ceylon (3) 1,795,861 3,125 0.01
National Development Bank of Sri Lanka 1,330,600 2,14 0.01
-------------------
5,967 0.02
-------------------
TAIWAN - 9.15%
Acer Peripherals Inc. 6,580,851 27,263 0.12
Advanced Semiconductor Engineering, Inc. (2) 56,730,855 202,481
Advanced Semiconductor Engineering, Inc. (GDR) (2) 5,451,683 106,716 1.32
ASE Test Ltd. (2) 3,834,500 93,466 0.40
Asia Cement Corp. 9,216,533 8,106 0.03
Asia Corporate Partners Fund, Class B 40,000 20,495 0.09
(acquired 3/12/96, cost: $19,919,000)(1)(2)(4)
Asustek Computer Inc. 24,654,120 260,055
Asustek Computer Inc. (GDR) 1,670,683 23,264 1.21
Cathay Construction Co. Ltd. 5,673,001 1,889 0.01
China Steel Corp. 39,642,000 29,308
China Steel Corp. (ADR) (acquired 7/30/99, 6,392 96
cost: $94,000)(1)
China Steel Corp. (GDS) 2,641,140 39,551 0.29
CMC Magnetics Corp. (2) 35,602,400 161,674 0.69
Compal Electronics, Inc. 4,786,904 16,094 0.07
Far Eastern Textile Ltd. (GDR) (2) 908,300 21,935 0.09
Primax Electronics Ltd. 10,585,628 12,144 0.05
Ritek Corp. (2) 1,591,000 9,633
Ritek Corp. (GDR) (2) 2,136,500 24,73 0.15
Seres Capital (Cayman Islands) (acquired 3/12/96, 2 33
cost: $12,000) (1) (2)
Seres Capital (Cayman Islands), nonvoting 8 165 0.00
(acquired 3/12/96, cost: $63,000) (1) (2)
Siliconware Precision Industries Co., Ltd. (GDR) (2) 3,690 53 0.00
Taiwan Semiconductor Manufacturing Co. Ltd. (2) 186,050,291 990,134
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) 346,829 15,607 4.29
United Microelectronics Corp., Ltd. (2) 20,015,000 71,437 0.31
Wus Printed Circuit Co., Ltd. 4,039,287 5,960 0.03
-------------------
2,142,289 9.15
-------------------
THAILAND - 0.55%
Charoen Pokphand Feedmill PCL 166,089 488 0.00
Dusit Thani PCL (2) 1,083,366 954 0.00
Electricity Generating Authority of Thailand 11,561,947 14,426 0.06
Phatra Insurance PCL 42,700 76 0.00
Post Publishing PCL (3) 2,525,000 1,988 0.01
PTT Exploration and Production PCL (2) 5,538,800 34,294 0.15
Serm Suk PCL 210,166 954
Serm Suk PCL, local registered 64,960 236 0.00
Siam City Cement PCL (2) 7,661,224 41,302 0.18
Siam Commercial Bank PCL, warrants, expire 277,366
June 22, 2004 (2)
Siam Commercial Bank PCL, warrants, expire 3,857,400 1,802
May 10, 2002 (2)
Siam Commercial Bank PCL 5.25% convertible 26,315,800 32,306 0.15
preferred May, 2009 (2)
Wattachak PCL 3.50% convertible bond December 6, 2003 $6,400,000 0.00
-------------------
128,826 0.55
-------------------
TURKEY - 9.82%
Adana Cimento Sanayii TAS, Class A 547,652,410 19,700
Adana Cimento Sanayii TAS, Class C 187,277,300 915 0.09
Akbank Turk AS 5,205,415,800 153,637 0.66
Aktas Elektrik Ticaret AS 48,848,718 8,290 0.03
Ege Biracilik ve Malt Sanayii AS (3) 952,082,614 72,886 0.31
Erciyas Biracilik ve Malt Sanayii AS (2) (3) 825,686,600 39,601 0.17
Eregli Demir ve Celik Fabrikalari TAS (2) (3) 3,240,854,600 134,513 0.57
Koc Holding AS 721,534,546 133,100 0.57
Migros Turk TAS (3) 213,535,011 137,866 0.59
Nergis Holding AS (2) 204,377,870 668 0.00
Netas, Northern Electric Telekomunikasyon AS 187,361,200 24,885 0.11
Petrol Ofisi AS 731,546,810 172,057 0.73
Trakya Cam Sanayii AS 2,529,055,046 32,191 0.14
Turk Dis Ticaret Bankasi AS (2) 166,289,965 1,258 0.00
Turkiye Garanti Bankasi AS (2) 12,343,952,860 186,719 0.80
Turkiye Is Bankasi, AS Class C 13,111,754,687 628,861
Turkiye Is Bankasi, AS Class C (GDR) (2) 611,500 2,446 2.70
Turkiye Sise ve Cam Fabrikalari AS (3) 2,793,365,155 74,716 0.32
Yapi ve Kredi Bankasi AS (3) 15,292,213,229 472,504 2.02
Yapi ve Kredi Koray AS, Class B (2) 302,600,000 2,735 0.01
-------------------
2,299,548 9.82
-------------------
UKRAINE - 0.00%
JKX Oil & Gas PLC (2) (3) 7,088,095 1,031 0.00
-------------------
VENEZUELA - 0.38%
Compania Anonima Nacional Telefonos de 3,614,900 89,017 0.38
Venezuela (CANTV), Class D (ADR) (3)
-------------------
VIETNAM - 0.01%
Vietnam Frontier Fund (acquired 7/21/94, 222,610 723 0.00
cost: $2,293,000) (1) (2)
Vietnam Investment Fund, ordinary, units 6
(acquired 8/4/94, cost: less than $1,000) (1) (2)
Vietnam Investment Fund, preferred, units 30 1,624 0.01
(acquired 8/4/94, cost: $3,206,000) (1)(2) (4)
-------------------
2,347 0.01
-------------------
MULTINATIONAL - 2.74%
Aminex PLC (acquired 8/1/97, cost: $3,856,000) (1)(2) 3,250,000 1,470 0.01
Armada Gold Corp. (2) 3,264,000
Armada Gold Corp. 10.00% convertible bond July 8, 2004 CAD800,000 0.00
Asia Pacific Resources International Holdings 3,024,800 4,581 0.02
Ltd. (2) (3)
Billiton PLC 36,556,100 216,608
Billiton PLC (ADR) 228,600 1,314 0.93
Black Swan Gold Mines Ltd. (2) 2,275,000 315 0.00
Capital International Global Emerging Markets 56,000 61,304 0.26
Private Equity Fund, (acquired 6/30/99,
cost: $54,703,000) (1)(4)
Cie. Financiere pour l'Europe Centrale SA (GDR) (2) 69,800 902 0.00
Coca-Cola Beverages PLC (2) 38,265,680 72,941 0.31
DiamondWorks Ltd. (2) 3,966,000 96 0.00
Genting International PLC (2) 300 0.00
Glencar Mining PLC (2) 519,735 243 0.00
Goldbelt Resources Ltd. (2) 766,372 0.00
Kimberley Resources Ltd. (2) 426,221 92 0.00
MIH Ltd. (2) (3) 1,223,240 72,171 0.31
New Asia East Investment Fund Ltd., 293,600 3143
Class A (acquired 5/23/96, cost: $2,841,000) (1)(4)
New Asia East Investment Fund Ltd., Class B 4,006,400 42,897 0.20
(acquired 5/23/96, cost: $38,762,000) (1)(2) (4)
New Europe East Investment Fund Ltd., 436 37,746 0.16
Class B (acquired 6/4/93, cost: $33,160,000) (1)
Panamerican Beverages, Inc., Class A 6,097,200 125,374 0.54
-------------------
641,197 2.74
-------------------
MISCELLANEOUS - 2.35%
Equity securities in initial period of acquisition 551,10 2.35
-------------------
551,105 2.35
-------------------
TOTAL EQUITY SECURITIES (cost:$14,269,477,599) 22,575,65 96.40
-------------------
Principal Market Percent
Amount Value of Net
BONDS AND NOTES (000) (000) Assets
- -------------------------------------------- -------- -------- --------
ARGENTINA - 0.27%
Republic of Argentina:
8.75% July 10, 2002 ARS4,200 3,766
11.375% January 30, 2017 $20,095 20,045
11.75% April 7, 2009 5,130 5,117
11.75% February 12, 2007 (1) 12,020 10,880
Series E, 0% October 15, 2003 (5) ARS2,350 1,575
Series L, 6.188% Eurobonds March 31, 2005 (6) $11,088 10,035 .22
Bonos del Tesoro 8.75% May 9, 2002 3,250 3,065 .01
CEI Citicorp Holdings SA, Series B 11.25% ARS10,575 8,647 .04
February 14, 2007 (1)
-------------------
63,130 .27
-------------------
BRAZIL - 0.43%
Federal Republic of Brazil:
11.625% April 15, 2004 $180 180 .00
Capitalization Bond PIK 8.00% April 15, 2014 121,657 91,395 0.39
MYDFA Trust, 6.8125% September 15, 2007 2,747 2,208 .01
(acquired 10/2/96, cost: $12,381,000) (1) (6)
Brazil Global Bond 10.125% May 15, 2027 2,463 2,124 .01
Globo Comunicacoes e Partcipacoes Ltd. 3,835 3,269
10.625% December 5, 2008
Globo Comunicacoes e Partcipacoes Ltd. 1,000 853 .02
10.625% December 5, 2008 (acquired 6/18/99,
cost: $722,000)
McCaw International, Ltd. (owned by NEXTEL 170 117 .00
Communications, Inc.) 0%/13.00% April 15, 2007
RBS Participacoes SA 11.00% April 1, 2007 250 212 .00
(acquired 7/30/99, cost: $168,000) (1)
-------------------
100,358 .43
-------------------
BULGARIA - 0.02%
Republic of Bulgaria Front Loaded Interest $5,195 3,759 .02
Reduction Bond, Series A, 2.50% July 28, 2012 (6)
-------------------
REPUBLIC OF CROATIA - 0.00%
Croatian Government:
Series A, 6.45625% July 31, 2010 (6) 500 446
Series B, 6.45625% July 31, 2006 (6) 303 280 .00
-------------------
726 .00
-------------------
INDIA - 0.00%
Flex Industries Ltd. 13.50% December 31, 2004 INR29,929 - .00
-------------------
INDONESIA - 0.08%
APP International Finance 11.75% October 1, 2005 $700 590 .00
Indah Kiat International Finance:
10.00% July 1, 2007 9,135 6,805
11.875% June 15, 2002 4,250 3,761 .05
International Finance Co. 10.00% June 1, 2007 1,725 884 .00
Pindo Deli Finance Mauritius Ltd.:
10.25% October 1, 2002 2,035 1,613
10.75% October 1, 2007 7,275 5,292 .03
-------------------
18,945 .08
-------------------
MEXICO - 0.20%
Banco Nacional de Comercio Exterior, S.N.C. 850 795 .00
7.25% February 2, 2004
Grupo Televisa, SA 0%/13.25% May 15, 2008 650 591 .00
Innova, S de RL 12.875% Senior Notes due April 1, 2007 1,000 892 .01
United Mexican States Government Bonds:
9.875% January 15, 2007 10,600 10,998
11.375% September 15, 2016 8,070 9,152
11.50% May 15, 2026 19,490 23,193 .19
-------------------
45,621 .20
-------------------
PANAMA - 0.05%
Republic of Panama:
8.875% September 30, 2027 5,615 4,731 .02
Interest Reduction Bonds 3.75% July 17, 2014 2,504 1,966 .01
(acquired 11/8/95, cost: $1,227,000) (1) (6)
Past Due Interest Bonds:
6.50% July 17, 2016 (6) 4,931 3,902
6.50% July 17, 2016 (acquired 6/21/96, 811 641 .02
cost: $573,000 (1)(6)
-------------------
11,240 .05
-------------------
POLAND - 0.01%
Netia Holdings BV 0%/11.25% November 1, 2007 875 562 .00
Poland Government Bond 10.00% June 12, 2004 PLN10,000 2,244 .01
PTC International Finance BV 0%/10.75% July 1, 2007 $400 269 .00
-------------------
3,075 .01
-------------------
RUSSIAN FEDERATION - 0.04%
Russia 12.75% June 24, 2028 (acquired 6/18/98, $910 635 .00
cost: $896,000) (1)
Russia 6.90625% December 15, 2015 (acquired 182 33 .00
12/5/97, cost: less than $27,000) (1)(6)
Russia Principal Loan 6.90625% December 15, 2020 (6) 48,114 7,939 .04
-------------------
8,607 0.04
-------------------
THAILAND - 0.00%
Advance Agro PCL 13.00% November 15, 2007 (6) 1,435 926 .00
-------------------
TURKEY - 0.02%
Cellco Finance NV:
15.00% August 1, 2005 2,050 2,234
Turkcell 12.75% August 1, 2005 (acquired 750 779 .01
12/17/99, cost: $750,000) (1)
Republic of Turkey 12.00% December 15, 2018 900 961 .01
-------------------
3,974 .02
-------------------
VENEZUELA - 0.13%
Republic of Venezuela:
Debt Conversion Bonds:
7.00% December 18, 2007 (6) 16,381 12,941
9.25% September 15, 2027 23,660 15,793 .12
Front Loaded Interest Reduction Bonds:
Series A Eurobond 6.875% March 31, 2007 (6) 2,500 1,963
Series B Eurobond 6.875% March 31, 2007 (6) 893 701 .01
-------------------
31,398 .13
-------------------
TOTAL BONDS AND NOTES (cost:$ 256,565,755) 291,759 1.25
Principal Market Percent
Amount Value of Net
SHORT-TERM SECURITIES (000) (000) Assets
- -------------------------------------------- -------- -------- --------
CORPORATE SHORT-TERM NOTES - 1.64%
Arco British Ltd. 5.98%-6.02% due 1/14-1/18/00 31,100 31,017 .13
Barclays Bank PLC 6.00% due 3/14/00 25,000 24,996 .11
CIT Group Inc. (The) 4.75% due 1/3/00 13,200 13,195 .06
GE Financial Assurance Holdings Inc. 5.93% 40,000 39,722 .17
due 2/7-2/14/00
Halifax PLC 6.13% due 1/10/00 30,000 29,951 .13
John Hancock Capital Corp. 6.32% due 1/5/00 15,000 14,987 .06
Reed Elsevier Inc. 6.01% due 1/21/00 5,000 4,983 .02
Spintab (Swedmortgage) AB 5.99% due 1/24/00 15,000 14,942 .06
UBS Finance (DE) Inc. 3.50%-4.25% due 1/3/00 189,900 189,837 .81
Westpac Trust Securities NZ Ltd. 6.00% due 1/19/00 20,000 19,937 .09
-------------------
383,567 1.64
-------------------
FEDERAL AGENCY DISCOUNT NOTES - 0.19%
Federal Home Loan Bank Discount Corp. 45,000 44,514 .19
5.78% due 3/10/00
-------------------
NON-U.S. CORPORATE OBLIGATIONS - 0.00%
Indah Kiat International Finance 8.875% due 11/1/00 475 444 .00
-------------------
NON-U.S. GOVERNMENT SHORT-TERM OBLIGATIONS - 0.22%
Polish Government Bonds, Series PLN, PLN6,100 1,464 .01
14.00% due 2/12/00
Turkish Government Treasury Bills due TRL33,757,000 50,953 .21
4/19-8/23/00 (5)
-------------------
52,417 .22
-------------------
NON-U.S. CURRENCY - 0.76%
Taiwanese Dollar TWD 5,602,459 178,536 .76
-------------------
TOTAL SHORT-TERM SECURITIES (cost: $668,341,838) 659,478 2.81
-------------------
TOTAL INVESTMENT SECURITIES (cost; $15,164,844) 23,526,88 100.46
Net unrealized appreciation on foreign 3,752 0.01
currency contracts (7)
Excess of payables over cash and receivables (110,964) (0.47)
(excludes open foreign currency contracts)
NET ASSETS $23,419,6 100.00
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 December 31, 1999, the total
market value and cost of such securities was
$355,409,000 and $389,035,000, respectively,
and the market value represented 1.52% 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. Includes an unfunded capital commitment representing
a binding commitment made by the fund which
may be paid in the future.
5. Represents a zero coupon bond that will convert
to a coupon-bearing security at a later date.
6. Coupon rate may change periodically.
7. At December 31, 1999, the net receivable
consists of the following:
Contract
Amount
Non-U.S. U.S.
(000) (000)
Sales:
European Monetary Union expiring 2/11/-10/19/00 EUR 486 $535
South African Rands expiring 3/31/00 ZAR1,400,931 228,603
Foreign currency contracts - net
U.S. Valuation
at 12/31/1999
Unrealized
U.S. Amount Appreciation
(000) (000) (000)
Sales:
European Monetary Union expiring 2/11/-10/19/00 $491 $689,625 $44
South African Rands expiring 3/31/00 224,89 244,09 3,708
Foreign currency contracts - net 3,752
Symbols:
Securities:
ADR - American Depositary Receipts
ADS - American Depositary Shares
GDR- Global Depositary Receipts
GDS- Global Depositary Shares
Non - US Currency
ARS - Argentine Peso
CAD - Canadian Dollar
DEM - German Deutsche Mark
EUR - Euro Dollar
INR - Indian Rupee
MXN - Mexican Peso
PHP - Philippine Peso
PLN - Polish Zloty
TRL - Turkish Lira
TWD - Taiwanese Dollar
ZAR - South African Rand
See Notes to Financial Statements
</TABLE>
<TABLE>
Emerging Markets Growth Fund
Financial Statements
Statement of Assets and Liabilities (Unaudited)
at December 31, 1999 (dollars in thousands
except per share data)
<S> <C> <C>
Assets:
Investment securities at market
(cost: $15,164,843) $23,526,887
Cash 1,376
Receivables for--
Sales of investments $2,457
Sales of fund's shares 17,063
Dividends and accrued interest 47,543
Open forward currency contracts 3,752 70,815
--------------B41 --------------
23,599,078
--------------
Liabilities:
Non-U.S. taxes payable 88,593
Payables for--
Purchases of investments 89
Unfunded capital commitments 75,137
Management services 11,047
Accrued expenses 4,537 90,810
-------------- --------------
179,403
--------------
Net Assets at December 31, 1999 --
Equivalent to $71.04 per share on
329,650,827 shares of $0.01 par value
capital stock outstanding (authorized
capital stock -- 400,000,000 shares) $23,419,675
==============
Statement of Operations (Unaudited)
for the Six Months Ended December 31, 1999 (dollars
in thousands)
Investment Income:
Income:
Dividends $119,616
Interest 73,732 $193,348
--------------
Expenses:
Management services fee 57,117
Custodian fee 10,085
Registration statement and prospectus 6
Auditing and legal fees 329
Reports to shareholders 21
Taxes other than federal income tax 1
Directors' fees 113
Other expenses 551 68,223
-------------- --------------
Net investment income 125,125
--------------
Realized Gain and Unrealized
Appreciation on Investments:
Realized gain 157,364
Net unrealized appreciation on investment
securities 5,147,721
Net change in unrealized appreciation
on open forward currency contracts 23,435
--------------
Net unrealized appreciation 5,171,156
Non-U.S. taxes (79,479)
--------------
Net unrealized appreciation on
investments 5,091,677
--------------
Realized gain and net unrealized
appreciation on investments 5,249,041
--------------
Net Increase in Net Assets Resulting
from Operations $5,374,166
==============
Statement of Changes in Net Assets
(dollars in thousands)
(Unaudited)
Six Months Ended Year Ended
December 31, June 30,
1999 1999
-------------- ---------------
Operations:
Net investment income $125,125 $411,622
Net realized gain(loss) on investments 157,364 (1,036,552)
Net unrealized appreciation on investments 5,091,677 3,934,960
-------------- ---------------
Net increase in net assets
resulting from operations 5,374,166 3,310,030
-------------- ---------------
Dividends Paid to Shareholders:
Dividends from net
investment income (318,059) -
-------------- ---------------
Capital Share Transactions:
Proceeds from shares sold:
14,134,787 and 58,327,982 shares, respectiv 809,266 2,473,079
Proceeds from shares issued in
reinvestment of net investment
income dividends: 4,595,841 shares 288,159 -
Cost of shares repurchased: 15,902,283 shar (881,281) -
--------------- ---------------
Net increase in net assets
resulting from capital share
transactions 216,144 2,473,079
-------------- ---------------
Total Increase in Net Assets 5,272,251 5,783,109
Net Assets:
Beginning of period 18,147,424 12,364,315
-------------- ---------------
End of period (including excess net investment
income over net distributions: ($37,992) and
$154,942, respectively) $23,419,675 $18,147,424
=============== ===============
See Notes to Financial Statements
</TABLE>
Emerging Markets Growth Fund, Inc.
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Organization - Emerging Markets Growth Fund, Inc. (the "fund") was
registered under the Investment Company Act of 1940 as a closed-end,
diversified management investment company. On July 1, 1999, the fund converted
to an open-ended interval fund. 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 security
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.
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.
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 in order to manage its exposure to
local markets. The primary risks associated with the use of options are 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.
2. Non-U.S. Investment Risk
Investments in securities of non-U.S. issuers in certain countries involve
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 10% to 35%. 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 December 31, 1999, net unrealized appreciation on investments,
excluding forward currency contracts, for federal income tax purposes
aggregated $8,218,204,000 on unrealized appreciation of securities, net of
accumulated deferred taxes totaling $88,700,000, of which $9,253,325,000
related to appreciated securities and $1,035,121,000 related to depreciated
securities. During the six-month period ended December 31, 1999, the fund
realized, on a tax basis, a net capital loss of $634,000,000 relating to losses
deferred from the prior year. As of December 31, 1999, the fund has available a
net capital loss carryforward totaling $1,189,675,000, which may be used to
offset capital gains realized during subsequent years through 2008
($556,055,000 through 2007 and $633,620,000 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. For the six-month
period ended December 31, 1999, the fund recognized, for federal income tax
purposes, net gains related to non-U.S. currency transactions of $32,078,000.
Such amounts were treated as ordinary income for federal income tax purposes.
The cost of portfolio securities, excluding forward currency contracts, for
federal income tax purposes was $15,219,983,000 at December 31, 1999.
4. Fees and Transactions with Related Parties
Investment Advisory Fee - The fee of $57,117,000 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 December 31, 1999, aggregate amounts deferred and earnings
thereon were $177,000. These amounts are included with accrued expenses.
5. Investment Transactions and Other Disclosures
As of December 31, 1999, accumulated undistributed net realized loss on
investments was $1,259,018,000 and additional paid-in capital was
$16,465,000,000.
The fund made purchases and sales of investment securities, excluding
certain short-term securities, of $3,619,063,000 and $3,629,609,000,
respectively, during the six-month period ended December 31, 1999.
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 $10,085,000 includes $72,000 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 six-month period ended December 31, 1999, such non-U.S. taxes were
$13,754,000. 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 $8,841,000 for the six-month period ended
December 31, 1999.
<TABLE>
Per-Share Data and Ratios
<S> <C> <C> <C> <C> <C> <C>
Six Months(1) Year Ended June 30
Ended -------- ------------------------------------
12/31/99 1999 1998 1997 1996 1995
Net Asset Value, Beginning of
Period $55.53 $46.05 $70.87 $57.57 $52.36 $58.75
-------- -------- -------- -------- -------- --------
Income from Investment
Operations:
Net investment income .39 1.48 1.56 1.61 1.30 .87
Net realized and unrealized
gain (loss) on investments
before non-U.S. taxes 16.10 8.03 (20.69) 14.51 6.49 (.79)
Non-U.S. taxes -- (.03) 0.05 (.01) (.01) (.03)
-------- -------- -------- -------- -------- --------
Total income (loss) from
investment operations 16.49 9.48 (19.08) 16.11 7.78 .05
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from net
investment income (.98) -- (2.36) (1.79) (1.30) (.63)
Distributions from net
realized gains -- -- (3.38) (1.02) (1.27) (5.81)
-------- -------- -------- -------- -------- --------
Total distributions (.98) -- (5.74) (2.81) (2.57) (6.44)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $71.04 $55.53 $46.05 $70.87 $57.57 $52.36
======= ======= ======= ======= ======= =======
Total Return 29.93% 20.59% (27.56)% 29.17% 15.49% (1.22)%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $23,420 $18,147 $12,364 $13,584 $8,451 $5,572
Ratio of expenses to average
net assets 0.36%(2) .73% .76% .78% .84% .91%
Ratio of expenses and non-U.S.
taxes to average net assets 0.36%(2) .73% .80% .78% .85% .94%
Ratio of net income to average
net assets 0.66%(2) 3.03% 2.58% 2.74% 2.54% 1.70%
Portfolio turnover rate 19.47%(2) 33.71% 23.41% 23.75% 17.78% 23.75%
(1) Unaudited
(2) Based on operations for the
period shown and, accordingly,
not representative of a full
year's operations.
</TABLE>
<PAGE>
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
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, New York, New York
Managing Director, International Investments,
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
Vice Chairman of the Board,
Capital Group 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
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/CG/4519
(c) 2000 Emerging Markets Growth Fund, Inc.
Lit. No. EMGF-013-0200(NLS)
