<PAGE>
The Asia Pacific
Fund, Inc.
-------------------------------------------------------------------
Semi-Annual Report
September 30, 2000
- Shareholders should be aware that the Board of Directors of The Asia
Pacific Fund, Inc. approved a tender offer for shares of the Fund's Common
Stock. The background to their decision is their concern about the deep
discount to net asset value at which the Fund's shares have been trading.
- The tender offer, which is subject to certain terms and conditions, is
planned to commence in November, 2000.
- The offer to purchase and letter of transmittal for the tender offer are
enclosed with this report.
www.asiapacificfund.com
<PAGE>
--------------------------------------------------------------------------------
The Asia Pacific Fund, Inc.
As of September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
OUR TOLL-FREE LINE:
1-888-4-ASIA-PAC
For further information on the Fund, please call. In addition, the Fund makes
available monthly portfolio information. If you would like to receive this
information please call the toll-free number indicated above.
Statistics
-------------------------------------------
Total Net Assets $215,115,858
Shares Outstanding 18,229,333
Net Asset Value $11.80
Equity 96.8%(a)
Repurchase Agreements 3.2%(a)
Total Returns (US Dollar terms)
-------------------------------------------------
Market
Period Price(b) NAV(c)
3 months ended 9/30/00 -9.68% -13.1%
6 months ended 9/30/00 -16.17% -19.7%
9 months ended 9/30/00 -22.22% -17.7%
1 Year ended 9/30/00 -1.53% 5.5%
3 Years ended 9/30/00 -14.12% -3.1%
5 Years ended 9/30/00 -24.85% -8.4%
10 Years ended 9/30/00 111.37% 147.20%
Since inception 125.59% 225.00%
Since inception
(annualized) 6.24% 9.1%
Other Information
------------------------------------------------
Ticker Symbol APB
Primary Exchange NYSE
Dividend Repurchase Program Yes
------------------------------------------------
Footnote section
(a) Expressed as a percentage of total
investments.
(b) Total investment return is calculated
assuming a purchase of common stock at the
current market value on the first day and a
sale at the current market value on the last
day of each fiscal period reported.
Dividends and distributions are assumed, for
purposes of this calculation, to be
reinvested at prices obtained under the
Fund's dividend reinvestment plan. These
calculations do not include brokerage
commissions.
(c) This information represents the historical
net asset value per share performance of The
Asia Pacific Fund, Inc. 'Net asset value per
share performance' has been computed by the
Investment Manager and, because it does not
reflect market price, is not the same as
'total investment return.'
Portfolio Characteristics
(As of September 30, 2000)
-----------------------------------------------------
Top Ten Long-Term Holdings
(% of Total Long-Term Investments)
-----------------------------------------------------
Hutchison Whampoa, Ltd. 9.94%
Samsung Electronics Co. 6.36%
China Telecom, Ltd. 5.03%
Taiwan Semiconductor Manufacturing Co. 4.54%
Sun Hung Kai Properties, Ltd. 4.45%
Cheung Kong Holdings, Ltd. 4.30%
United Microelectronics Corp., Ltd. 3.99%
HSBC Holdings Plc. 3.86%
Hon Hai Precision Industry Co., Ltd. 2.46%
-------------------------------------------------------
Long-Term Country Weightings
(% of Total Long-Term Investments)
-------------------------------------------------------
(PIE CHART)
Hong Kong/China 41.26% Thailand 1.58%
Taiwan 20.09% Indonesia 1.36%
South Korea 17.26% India 1.17%
Singapore 11.91% The Philippines 0.14%
Malaysia 5.23%
-----------------------------------------------------
Sector Breakdown: Top Ten Industries
(% of Total Long-Term Investments)
-----------------------------------------------------
Banking 15.70%
Telecommunications 12.10%
Conglomerate 11.02%
Electronics 10.14%
Real Estate-Developers 9.30%
Foundry (Semi-conductors) 8.40%
Utilities 3.57%
Distribution 3.32%
Chemicals 2.71%
Retail 2.50%
1
<PAGE>
--------------------------------------------------------------------------------
REPORT OF THE INVESTMENT MANAGER
For the period from April 1, 2000 to September 30, 2000
--------------------------------------------------------------------------------
PERFORMANCE
Asian markets fared poorly during the period under review. During the last
six months the Fund's net asset value (NAV) per share decreased by US$2.89 from
US$14.69 to US$11.80. In percentage terms the Fund's total return performance
was -19.7%. This compares with the return of its relevant benchmark index, the
MSCI Combined Far East Free Ex-Japan (gross), of -25.6%. The Fund's
outperformance of 5.9% was due to a combination of stock selection and asset
allocation.
Local Currencies vs. the US Dollar
<TABLE>
<CAPTION>
Period
Mar 31-
Sept 30
2000
Currency March 31, June 30, September 30, Change
Local/US$ rate 2000 2000 2000 %
------------------- --------- -------- ------------- -------
<S> <C> <C> <C> <C>
North Asia
Chinese Renminbi 8.28 8.28 8.28 0.0
Hong Kong Dollar 7.79 7.80 7.80 -0.1
Korean Won 1,105 1,115 1,115 -0.9
New Taiwan Dollar 30.43 30.80 31.33 -2.9
ASEAN
Indonesian Rupiah 7,570 6,752 8,875 -17.2
Malaysian Ringgit 3.80 3.80 3.80 0.0
Philippine Peso 41.13 43.23 46.20 -12.3
Singaporean Dollar 1.71 1.73 1.74 -1.7
Thai Baht 37.81 39.22 42.20 -11.6
South Asia
Indian Rupee 43.61 44.67 46.04 -5.6
*Source: Factset
</TABLE>
Stock Market Performance (Net)*
April 1, 2000 to September 30, 2000
<TABLE>
<CAPTION>
Period
2nd Quarter 3rd Quarter Apr-Sept
2000 2000 2000
Market Market Market
Change % Change% Change %
Country - Index US$ US$ US$
------------------------- ----------- ------------ --------
<S> <C> <C> <C>
North Asia
MSCI China 24.1% -17.6% 2.2%
MSCI Hong Kong -14.1 -1.7 -15.5
MSCI Korea -0.8 -28.9 -29.4
MSCI Taiwan -16.4 -23.5 -36.0
ASEAN
MSCI Indonesia Free -28.8 -18.6 -42.1
MSCI Malaysia Free -15.1 -17.1 -29.6
MSCI Philippines Free -15.7 -14.5 -28.0
MSCI Singapore Free -2.4 -5.6 -7.9
MSCI Thailand Free -23.0 -29.0 -45.3
South Asia
MSCI India -18.7 -17.2 -32.6
Regional
MSCI Combined Far East
Free Ex-Japan -12.0 -16.1 -25.6
* Source: Factset
</TABLE>
COUNTRY ALLOCATION
<TABLE>
<CAPTION>
March 31, June 30, September 30,
2000 2000 2000
Country (%) (%) (%)
------------------ ------------ ----------- ----------------
<S> <C> <C> <C>
North Asia 78.3% 76.2% 76.9%
Hong Kong/China 34.9 33.9 40.4
Korea 20.8 20.6 16.9
Taiwan 22.6 21.7 19.6
ASEAN 19.6 20.0 19.8
Indonesia 1.3 1.5 1.3
Philippines 0.9 0.4 0.1
Malaysia 2.8 4.4 5.1
Singapore 11.5 11.3 11.7
Thailand 3.1 2.4 1.6
South Asia
India 0.9 1.3 1.2
Cash 1.2 2.5 2.1
</TABLE>
2
<PAGE>
MARKET & ASSET ALLOCATION REVIEW
The Asia Pacific region has performed very poorly over the last six months,
falling 25.6% as measured by the MSCI Combined Far East Free Ex-Japan (gross)
index. The region in the March to June quarter (-12.0%) was plagued largely by
external influences, namely the outlook for the US economy, Federal Reserve
monetary policy and international equity markets' behavior (NASDAQ in
particular). In the July-September quarter (-16.1%) attention refocused on
rising oil prices, deteriorating demand outlook for the global technology
sector, and falling economic and earnings momentum in Asia.
During the period under review, the Asian currencies were noticeably weaker.
In general, their weakness reflected the state of their countries' financial
systems. The sharpest declines were seen in the Indonesian Rupiah (-12.3%), the
Philippine Peso (-12.3%) - which is now at an all time low - and the Thai Baht
(-11.6%). The extent of the region's weakness somewhat surprised your Investment
Manager. The declines in Thailand, Indonesia, the Philippines and Malaysia
(together known as 'TIPM') can, to some degree, be rationalised and hence the
Fund's low weighting in these markets. The extent of the stock market falls in
Korea and Taiwan, particularly in the third quarter of 2000, have been propelled
by local issues. In Korea, these centered around the restructuring of the
Hyundai group as well as various unsuccessful asset sales to foreign investors.
In Taiwan, the issues involved the failure of the newly elected Democratic
Peoples' Party (DPP) to wrestle effective control from the outgoing Kuomintang
(KMT), combined with the global technology sell-off.
At the country allocation level there were three minor changes during the six
months. First, Hong Kong was increased, largely in the month of July. Second,
the North Asian markets of Korea and Taiwan were marginally reduced in the third
quarter of 2000. Third, ASEAN was further reduced: Malaysia was favoured amongst
TIPM, whereas the weighting to Singapore remained relatively steady. At the
sector allocation level there have been a number of significant changes. First,
in the early second quarter of 2000, the Fund's weighting to the
telecommunications sector was significantly reduced from overweight to
underweight. At the same time, the underweight positions in real estate and
banks were reduced to a more neutral weighting. In the third quarter the banks
and property sectors were increased further to an overweight stance at the
expense of technology, which was reduced from very overweight to a less
overweight position. Overall, these changes to asset allocation have contributed
positively to the Fund's relative performance.
OUTLOOK
Recent performance of the Asian markets bears little correlation with the
region's economic and corporate performance. Since the US Federal Reserve began
raising rates last July (1999), the Fund's benchmark index is down by over 30%,
whereas it has, in fact, generated earnings growth of over 70% for the period.
The resultant multiple compression witnessed by Asia suggests either that the
economic recovery currently being enjoyed by the region is about to end
abruptly, or else merely reflects the indifference investors currently feel
towards these markets. Your Manager believes the latter and feels strongly that
the Asian markets would rebound sharply if investors' attitude towards the
region was to improve.
'The media' is increasingly a critical ingredient in forging sentiment. No
doubt they have had their part to play in the momentum and technology 'fad'
investing that has characterised the developed markets over the last few years.
Your Manager notes the disproportionate air time (and negative comments) TIPM
receives and yet the significance of these countries in the region has been
substantially reduced (to relative unimportance) over the last few years. This
can be clearly seen in the chart below. Indeed, the region is now more of a
'Greater China story' (Greater China can be defined as the region incorporating
Hong Kong, China and Taiwan). As mentioned in the previous quarter-end report,
the outlook for China is believed to be strong with the economy at the early
stage of a recovery, which - it is believed - will be the main catalyst for the
region as a whole over the coming few quarters.
3
<PAGE>
Breakdown by market capitalisation of MSCI Far East Free Ex-Japan Index
<TABLE>
<CAPTION>
June 2000 March 1998 March 1996 December 1993
% % % %
--------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
H.K./China 34.9 39.0 33.2 40.6
Singapore 11.4 12.7 15.3 12.1
Korea/Taiwan 38.8 23.3 4.0 2.6
TIPM* 14.9 25.0 47.5 44.7
* Thailand, Indonesia, Philippines & Malaysia
Both China and Taiwan were introduced to the index on September 3, 1996.
Source: Factset
</TABLE>
In conclusion, the Asian markets have been incapable of focussing--or
believing in--the recent good news the region has had to offer. These markets
will remain susceptible to negative sentiment and be beholden to the trends
experienced in the US, until Asian investors' confidence towards Asia returns.
The markets themselves, however, appear to have discounted all but a disaster
scenario (such as a collapse in the US equity market), which the Manager
believes to be highly unlikely. Therefore, for the patient investor, the Asian
markets currently represent a very good buying opportunity, certainly the best
opportunity since the height of the 'Asian Crisis' in August/September 1998.
James Squire
Investment Manager
Baring Asset Management (Asia) Limited
September 24, 2000
4
<PAGE>
----------------------------------------------------------
THE ASIA PACIFIC FUND, INC.
Portfolio of Investments
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
-------------------------------------------------------
Value
Shares Description (Note 1)
-------------------------------------------------------
<C> <S> <C>
EQUITIES--98.1%
Hong Kong--40.5%
5,000,000 Brilliance China Automotive $ 1,522,983
Holdings, Ltd. ...........
(Automobile Manufacturing)
750,000 Cheung Kong Holdings, Ltd. 9,065,754
..........................
(Real Estate-Developers)
1,600,000 China Telecom, Ltd. (a) .... 10,619,197
(Telecommunications)
446,000 China Unicom, Ltd. ......... 998,140
(Telecommunications)
2,718,000 Citic Ka Wah Bank, Ltd. .... 906,325
(Banking)
7,000,000 Giordano International, Ltd. 4,062,356
..........................
(Retail)
86,000 Hang Seng Bank, Ltd. ....... 926,486
(Banking)
1,710,121 Hong Kong and China Gas Co., 2,138,419
Ltd. .....................
(Utilities)
1,330,000 Hong Kong Exchanges & Clear- 2,669,484
ing, Ltd. ................
(Financial Services)
581,800 HSBC Holdings Plc. ......... 8,133,202
(Banking)
1,580,300 Hutchison Whampoa, Ltd. .... 20,976,895
(Conglomerate)
8,461,000 Jiangxi Copper Co., Ltd. ... 1,052,579
(Metals Processing)
2,052,000 Johnson Electric Holdings, 4,408,121
Ltd. .
(Manufacturing)
1,888,000 Kingboard Chemical Holdings, 823,270
Ltd. .....................
(Electronics)
2,152,000 Li & Fung, Ltd. ............ 4,540,143
(Distribution)
1,397,641 Pacific Century Cyberworks, 1,577,392
Ltd.
(Telecommunications)
5,000,000 PetroChina Co., Ltd. ....... 1,019,597
(Oil & Gas Services)
996,000 Sun Hung Kai Properties, Ltd. 9,388,755
..........................
(Real Estate-Developers)
<CAPTION>
-------------------------------------------------------
Value
Shares Description (Note 1)
-------------------------------------------------------
<C> <S> <C>
612,000 Varitronix International, $ 851,613
Ltd. .....................
(Manufacturing)
4,967,000 Yanzhou Coal Mining Co., Ltd. 1,353,675
. ------------
(Mining)
87,034,386
------------
India--1.2%
203,700 India Fund, Inc. (a) ....... 2,470,043
(Diversified Funds) ------------
Indonesia--1.3%
1,014,500 PT Gudang Garam Tbk ........ 1,212,197
(Tobacco)
94,700 PT Indonesia Satellite Tbk 757,600
(ADR) ....................
(Telecommunications)
1,800,000 PT Ramayana Lestari Sentosa 897,436
Tbk . ------------
(Retail)
2,867,233
------------
Malaysia--5.1%
392,000 British American Tobacco 3,687,895
Berhad ...................
(Tobacco)
20,000 Genesis Malay Maju ......... 380,000
(Diversified Funds)
600,000 Malayan Banking Berhad ..... 2,305,263
(Banking)
1,102,000 Tanjong Co., Ltd. .......... 2,276,500
(Conglomerate)
800,000 Tenaga Nasional Berhad ..... 2,378,947
(Utilities) ------------
11,028,605
------------
The Philippines--0.1%
3,000,000 SM Prime ................... 305,195
(Retail) ------------
Singapore--11.7%
240,000 City Developments, Ltd. .... 1,171,740
(Real Estate-Developers)
762,469 DBS Group Holdings, Ltd. ... 8,408,619
(Banking)
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------
Value
Shares Description (Note 1)
-------------------------------------------------------
<C> <S> <C>
600,080 Overseas-Chinese Banking $ 3,791,430
Corp., Ltd. ..............
(Banking)
919,000 Parkway Holdings, Ltd. ..... 1,879,173
(Health Care)
320,198 Singapore Press Holdings, 4,800,211
Ltd. .....................
(Printing & Publishing)
2,100,577 Singapore Technologies 3,112,860
Engineering, Ltd. ........
(Engineering &
Construction)
1,250,000 Singapore Telecommunications, 1,952,901
Ltd. ..................... ------------
(Telecommunications)
25,116,934
------------
South Korea--16.9%
245,100 Honam Petrochemical Corp. 1,461,611
..........................
(Chemicals)
56,080 Keumkang Korea Chemical, Ltd. 2,514,460
(Building & Construction)
339,377 Kookmin Bank ............... 4,047,629
(Banking)
115,690 Korea Electric Power Corp. 3,018,947
..........................
(Utilities)
48,140 Korea Telecom Corp. ........ 2,883,694
(Telecommunications)
53,950 Pohang Iron & Steel Co. .... 4,015,469
(Iron & Steel)
74,068 Samsung Electronics Co. .... 13,416,792
(Electronics)
20,690 Sk Telecom Co., Ltd. ....... 5,046,568
(Telecommunications) ------------
36,405,170
------------
Taiwan--19.7%
565,343 Asustek Computer, Inc. (a) 3,004,063
..........................
(Computer Products)
1,726,044 China Steel Corp. .......... 1,116,072
(Iron & Steel)
2,805,000 Chinatrust Commercial Bank 2,110,035
..........................
(Banking)
-------------------------------------------------------
Value
Shares Description (Note 1)
-------------------------------------------------------
1,493,061 Formosa Plastic Corp. ...... $ 2,298,855
(Chemicals)
785,980 Hon Hai Precision Industry 5,182,838
Co., Ltd. (a) ............
(Electronics)
1,385,000 Nan Ya Plastic Corp., ...... 1,950,704
(Chemicals)
957,937 President Chain Store Corp. 3,035,716
..........................
(Convenience Stores)
1,006,400 Siliconware Precision 1,011,554
Industries Co. ...........
(Electronics)
780,000 Synnex Technology Int'l. 2,471,831
Corp. .
(Distribution)
3,615,000 Taishin International Bank 2,198,623
..........................
(Banking)
2,874,100 Taiwan Semiconductor Manufac- 9,568,066
turing Co. ...............
(Foundry)
3,798,800 United Microelectronics 8,147,234
Corp., Ltd. (a) ..........
(Foundry)
439,481 United World Chinese Commer- 281,358
cial Bank ................ ------------
(Banking)
42,376,949
------------
Thailand--1.6%
200,000 Advanced Info Services PCL 1,687,004
(a)
(Telecommunications)
148,700 BEC World PCL .............. 704,656
(Television & Communication
Equipment)
360,000 Hana Microelectronics PCL 946,807
.......................... ------------
(Electronics)
3,338,467
------------
Total equities
(cost $169,756,669)........ 210,942,982
------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
-------------------------------------------------------
<C> <S> <C>
Repurchase Agreement--3.3%
United States
$ 7,080 State Street Bank and Trust $ 7,080,000
Company, 5.25%, dated
9/29/00 due 10/2/00 in the
amount of $7,083,098 (cost
$7,080,000; collateralized
by $7,205,000 US Treasury
Bonds, 5.375% due 2/15/01,
approximate value of
collateral including
accrued interest
$7,226,110)................
------------
Total Investments--101.4%
(cost $176,836,669; Note
3)......................... 218,022,982
Liabilities in excess of
other
assets--(1.4%)............. (2,907,124)
------------
Net Assets--100%............. $215,115,858
------------
------------
</TABLE>
---------------
(a) Non-income producing security.
ADR--American Depository Receipt
----------------------------------------------------------
THE ASIA PACIFIC FUND, INC.
Statement of Assets and Liabilities
September 30, 2000
(Unaudited)
----------------------------------------------------------
<TABLE>
<CAPTION>
Assets
<S> <C>
Investments, at value (cost
$176,836,669)........................ $218,022,982
Cash, including foreign currency
(cost $1,219,319).................... 1,218,956
Receivable for investments sold........ 750,005
Dividends and interest receivable...... 167,709
Other assets........................... 48,191
------------
Total assets......................... 220,207,843
------------
Liabilities
Payable for investments purchased...... 4,440,439
Accrued expenses and other
liabilities.......................... 254,446
Investment management fee payable...... 155,959
Deferred Thailand capital gains tax
liability............................ 140,916
Administration fee payable............. 45,737
Payable for Fund shares reacquired..... 35,370
Foreign withholding taxes payable...... 19,118
------------
Total liabilities.................... 5,091,985
------------
Net Assets............................. $215,115,858
------------
------------
Net assets comprised:
Common stock, at par................. $ 182,293
Paid-in capital in excess of par..... 206,120,911
Cost of 701,000 shares held in
Treasury........................... 7,068,038
------------
213,371,242
Distributions in excess of net
investment income.................... (92,202)
Accumulated net realized losses on
investments and foreign currency
transactions......................... (39,206,820)
Net unrealized appreciation on
investments and foreign currencies... 41,043,638
------------
Net Assets, September 30, 2000......... $215,115,858
------------
------------
Net Asset Value per share:
($215,115,858 3 18,229,333 shares of
common stock issued and
outstanding)......................... $11.80
------------
------------
</TABLE>
See Notes to Financial Statements. See Notes to Financial Statements.
7
<PAGE>
----------------------------------------------------------
THE ASIA PACIFIC FUND, INC.
Statement of Operations
Six Months Ended September 30, 2000
(Unaudited)
----------------------------------------------------------
<TABLE>
<CAPTION>
Net Investment Income
<S> <C>
Income
Dividends (net of foreign withholding
taxes of $326,309)................. $ 2,380,525
Interest............................. 81,620
------------
Total income....................... 2,462,145
------------
Expenses
Investment management fee............ 1,029,296
Administration fee................... 301,267
Custodian's fees and expenses........ 262,000
Reports to shareholders.............. 150,000
Legal fees and expenses.............. 79,000
Directors' fees...................... 47,000
Transfer agent's fees and expenses... 23,000
Audit fees and expenses.............. 21,000
Insurance............................ 21,000
Miscellaneous........................ 112,588
------------
Total expenses................... 2,046,151
------------
Net investment income................ 415,994
------------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions (net of
Thailand capital gains taxes of
$36,867)........................... 9,990,140
Foreign currency transactions........ (40,207)
------------
9,949,933
------------
Net change in unrealized appreciation
(depreciation) on:
Investments (net of change in
deferred Thailand capital gains
taxes of $238,604)................. (66,072,905)
Foreign currencies................... (119,995)
------------
(66,192,900)
------------
Net loss on investments and foreign
currencies........................... (56,242,967)
------------
Net Decrease in Net Assets
Resulting From Operations.............. $(55,826,973)
------------
------------
</TABLE>
----------------------------------------------------------
THE ASIA PACIFIC FUND, INC.
Statement of Changes in Net Assets
(Unaudited)
----------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) September 30, March 31,
in Net Assets 2000 2000
------------- ------------
<S> <C> <C>
Operations
Net investment
income............... $ 415,994 $ (24,021)
Net realized gain
(loss) on investments
and foreign currency
transactions......... 9,949,933 27,813,326
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currencies... (66,192,900) 90,152,821
------------- ------------
Net increase (decrease)
in net assets
resulting from
operations........... (55,826,973) 117,942,126
Distributions in excess
of net investment
income................. -- (2,650,189)
Cost of Fund shares
reacquired........... (7,068,038) --
------------- ------------
Total increase
(decrease)............. (62,895,011) 115,291,937
Net Assets
Beginning of period...... 278,010,869 162,718,932
------------- ------------
End of period............ $ 215,115,858 $278,010,869
------------- ------------
------------- ------------
</TABLE>
See Notes to Financial Statements. See Notes to Financial Statements.
8
<PAGE>
----------------------------------------------------------
THE ASIA PACIFIC FUND, INC.
Notes to Financial Statements
(Unaudited)
----------------------------------------------------------
The Asia Pacific Fund, Inc. (the 'Fund') is a diversified, closed-end,
management investment company. The Fund's investment objective is to achieve
long-term capital appreciation through investment primarily in equity securities
of companies in the Asia Pacific countries.
Note 1. Accounting The following is a summary
of significant accounting Policies
policies followed by the Fund in the preparation
of its financial statements.
Securities Valuation: Investments are stated at value. Investments for which
market quotations are readily available are valued at the last reported sales
prices. If there is no sales price or reliable market quotation on the date of
valuation, then investments are valued at the last bid price quoted on such date
or at fair value as determined in good faith by or under the direction of the
Fund's Board of Directors.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
In connection with transactions in repurchase agreements with U.S. financial
institutions, it is the Fund's policy that its custodian take possession of the
underlying securities, the value of which exceeds the principal amount of the
repurchase transaction, including accrued interest. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. If
the seller defaults, and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
Foreign Currency Translation: The books and records of the Fund are maintained
in United States dollars. Foreign currency amounts are translated into United
States dollars on the following basis:
(i) market value of investment securities, other assets and liabilities--at
the closing rate of exchange.
(ii) purchases and sales of investment securities, income and expenses--at
the rate of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange
rates and market values at the close of the fiscal period, the Fund does not
isolate that portion of the results of operations arising as a result of changes
in the foreign exchange rates from the fluctuations arising from changes in the
market prices of securities held at fiscal period end. Similarly, the Fund does
not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of portfolio securities
sold during the fiscal period. Accordingly, these realized foreign currency
gains(losses) are included in the reported net realized gains(losses) on
investment transactions.
Net realized gains(losses) on foreign currency transactions represent net
foreign exchange losses from sales and maturities of short-term securities,
holding of foreign currencies, currency gains or losses realized between the
trade and settlement dates on security transactions, and the difference between
the amounts of dividends, interest and foreign taxes recorded on the Fund's
books and the U.S. dollar equivalent amounts actually received or paid. Net
currency gains and losses from valuing foreign currency denominated assets,
other than investment securities, and liabilities at fiscal period end exchange
rates are reflected as a component of unrealized appreciation on investments and
foreign currencies.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. companies as a result of,
among other factors, the level of governmental supervision and regulation of
foreign securities markets and the possibility of political or economic
instability.
Security Transactions and Net Investment Income: Security transactions are
recorded on the trade date. Realized and unrealized gains and losses from
security and foreign currency transactions are calculated on the identified cost
basis. Dividend income is recorded on the ex-dividend date, and interest income
is recorded on an accrual basis. Expenses are recorded on the accrual basis
which may require the use of certain estimates by management.
Dividends and Distributions: Dividends from net investment income, if any, are
declared and paid at least annually. The Fund will distribute at least annually
any net capital gains in excess of net capital loss carryforwards.
9
<PAGE>
Dividends and distributions are recorded on the ex-dividend date.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
Taxes: It is the Fund's intention to continue to meet the requirements of the
U.S. Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no federal
income tax provision is required.
Withholding taxes on foreign dividends, interest and capital gains have been
provided for in accordance with the Fund's understanding of the applicable
country's tax rules and rates.
Note 2. Investment The Fund has a manage-
Management and ment agreement with Bar-
Administration ing Asset Management
Agreements (Asia) Limited (the
'Investment Manager') and an administration
agreement with Prudential Investments Fund Management LLC (the 'Administrator').
The Investment Manager is an indirect, wholly owned subsidiary of ING Groep N.V.
The investment management fee is computed weekly and payable monthly: 1.10%
of the Fund's average weekly net assets up to $50 million, 0.90% of such assets
between $50 million and $100 million and 0.70% of such assets in excess of $100
million based upon the Fund's average weekly net assets.
The administration fee is also computed weekly and payable monthly at an
annual rate of 0.25% up to $200 million and 0.20% in excess of the Fund's
average weekly net assets.
Pursuant to the agreements, the Investment Manager provides continuous
supervision of the investment portfolio and the Administrator provides occupancy
and certain clerical and accounting services for the Fund. Both the Investment
Manager and the Administrator pay the cost of compensation of certain directors
and officers of the Fund. The Fund bears all other costs and expenses.
Note 3. Portfolio Purchases and sales of
Securities investment securities, other
than short-term investments, for the six months
ended September 30, 2000 aggregated $69,291,698 and $66,396,577, respectively.
The United States federal income tax basis of the Fund's investments at
September 30, 2000 was 177,306,630 and accordingly, net unrealized appreciation
for federal income tax purposes was $40,716,352 (gross unrealized
appreciation--$55,058,106; gross unrealized depreciation--$14,341,754).
For federal income tax purposes, the Fund has a capital loss carryforward as
of March 31, 2000 of approximately $47,927,000 which expires in 2007. In
addition, the Fund has elected to treat net currency losses of approximately
$65,400 incurred in the five month period ended March 31, 2000 as having been
incurred in the current fiscal year. Accordingly, no capital gains distribution
is expected to be paid to shareholders until net gains have been realized in
excess of the aggregate of such amounts.
Note 4. Borrowings The Fund has a credit
agreement with an unaffiliated bank. The borrowing
limitation under this agreement is $70,000,000. Drawings may be made for periods
of one, two or three months and interest is accrued daily and payable at the end
of the loan period. The Fund had no loans outstanding for the six months ended
September 30, 2000.
Note 5. Capital There are 30 million shares
of $0.01 par value common stock authorized. During
the six months ended September 30, 2000, the Fund repurchased 701,000 of its own
shares on the open market at an average price of $10.09 and at a weighted
average discount per share of 26%.
On September 18, 2000, the Fund announced a tender offer to be conducted
during the fourth quarter of this year for 15% of the Fund's outstanding shares.
The Fund also announced the decision by the Board of Directors to conduct two
additional cash tenders in the future if during the 13-week measurement periods
ending the last Friday in August 2001 and 2002, shares of the Fund trade on the
New York Stock Exchange at an average discount from net asset value greater than
15%. Any subsequent tender offer would be for at least 10% of the Fund's
outstanding shares.
10
<PAGE>
THE ASIA PACIFIC FUND, INC.
Financial Highlights
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended March 31,
September 30, ------------------------------------------------------------
Per Share Operating Performance: 2000 2000 1999 1998 1997 1996
------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 14.69 $ 8.60 $ 9.19 $ 13.90 $ 14.87 $ 13.55
------------- -------- -------- -------- -------- --------
Net investment income (loss).............. 0.02 --(d) 0.06 0.12 0.06 0.05
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions............................ (3.00) 6.23 (0.61) (4.14) (0.53) 1.91
------------- -------- -------- -------- -------- --------
Total from investment operations.......... (2.98) 6.23 (0.55) (4.02) (0.47) 1.96
------------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income...... -- -- (0.04) (0.12) -- (0.04)
Distributions in excess of net investment
income.................................. -- (0.14) -- (0.16) -- --
Distributions from realized gains on
investments and foreign currencies...... -- -- -- (0.41) (0.50) --
------------- -------- -------- -------- -------- --------
Total dividends and distributions......... -- (0.14) (0.04) (0.69) (0.50) (0.04)
Increase resulting from Fund share
repurchase.............................. .09 -- -- -- -- --
------------- -------- -------- -------- -------- --------
Capital charge in respect of issuance of
shares.................................. -- -- -- -- -- (0.60)
------------- -------- -------- -------- -------- --------
Net asset value, end of period............ $ 11.80 $ 14.69 $ 8.60 $ 9.19 $ 13.90 $ 14.87
------------- -------- -------- -------- -------- --------
------------- -------- -------- -------- -------- --------
Market value, end of period............... $ 8 3/4 $10 7/16 $ 7 1/16 $ 9.00 $ 11 1/2 $ 14 1/4
------------- -------- -------- -------- -------- --------
------------- -------- -------- -------- -------- --------
Total investment return(a)................ (16.17)% 49.68% (21.02)% (16.07)% (16.18)% 1.16%
------------- -------- -------- -------- -------- --------
------------- -------- -------- -------- -------- --------
Ratios to Average Net Assets:
Expenses (including loan interest
expense)................................ 1.63%(c) 1.66% 1.79% 1.56% 1.63% 1.58%
Expenses (excluding loan interest
expense)................................ 1.63%(c) 1.66% 1.79% 1.56% 1.57% 1.53%
Net investment income..................... 0.33%(c) (0.01)% 0.80% 0.99% 0.43% --
Supplemental Data:
Average net assets (000 omitted).......... $ 250,244 $230,725 $141,079 $220,857 $275,702 $242,487
Portfolio turnover rate................... 27% 62% 64% 54% 43% 23%
Net assets, end of period (000 omitted)... $ 215,116 $278,011 $162,719 $174,019 $262,693 $281,057
Total debt outstanding at end of period
(000 omitted)........................... -- -- -- -- -- $ 20,000
Asset coverage(b)......................... -- -- -- -- -- $ 15,053
</TABLE>
---------------
(a) Total investment return is calculated assuming a purchase of
common stock at the current market value on
the first day and a sale at the current market value
on the last day of each fiscal period reported.
Dividends and distributions are assumed, for purposes
of this calculation, to be reinvested at prices
obtained under the Fund's dividend reinvestment plan.
These calculations do not include brokerage
commissions. Total returns for periods of less than a
full year are not annualized.
(b) Per $1,000 of debt outstanding.
(c) Annualized.
(d) Less than $0.005 per share.
Contained above is selected data for a share of common
stock outstanding, total investment return, ratios
to average net assets and other supplemental data for
the periods indicated. This information has been
determined based upon information provided in the
financial statements and market price data for the
Fund's shares.
See Notes to Financial Statements.
11
<PAGE>
--------------------------------------------------------------------------------
Supplemental Proxy Information
--------------------------------------------------------------------------------
The Annual Meeting of Shareholders of The Asia Pacific Fund, Inc. (the
'Fund') was held on Wednesday, July 12, 2000 at the offices of Sullivan &
Cromwell, 125 Broad Street, New York, New York. The meeting was held for the
following purposes:
<TABLE>
<CAPTION>
(1) To elect three Directors to serve as follows:
<C> <S> <C> <C> <C>
Director Class Term Expiring
------------------------------ ----- -------- --------
Robert H. Burns II 3 years 2003
Douglas Tong Hsu II 3 years 2003
David G. P. Scholfield II 3 years 2003
Directors whose term of office continued beyond this meeting are David J.
Brennan, Olarn Chaipravat, Michael J. Downey, Robert F. Gunia, and John A.
Morrell.
(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants for the fiscal year ending March 31, 2001.
(3) To consider a stockholder proposal requesting the Board of Directors to take
action to liquidate the Fund.
(4) To transact such other business as may properly come before the meeting or
any adjournment thereof.
</TABLE>
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
Votes Votes Votes
Director/Matter For Against Withheld Abstentions
--------------------------------- ----------- --------- --------- -----------
<C> <S> <C> <C> <C> <C>
(1) Robert H. Burns 3,782,126 0 3,188,078 --
Douglas Tong Hsu 3,773,990 0 3,196,213 --
David G. P. Scholfield 3,782,126 0 3,188,078 --
(2) Ratification of Deloitte & Touche
LLP as independent accountants 5,099,326 134,791 -- 1,730,087
(3) To consider a stockholder
proposal requesting the Board of
Directors to take action to
liquidate the Fund. 4,453,148 2,287,740 -- 229,316
</TABLE>
--------------------------------------------------------------------------------
Important Notice to Shareholders
--------------------------------------------------------------------------------
Shareholders should also be aware that, in accordance with a recent amendment
to Maryland corporations law, the Fund's advance notice Bylaw has been amended
so that stockholders wishing to bring Board nominations or any other business
before an annual meeting of stockholders must, except as otherwise provided in
the Bylaw, furnish written notice to the Fund in accordance with the Bylaw no
later than the 90th day, and no earlier than the 120th day, prior to the first
anniversary of the mailing of the notice for the preceding year's annual
meeting. Therefore, notice of any stockholder proposal to be presented at the
Fund's annual meeting of stockholders in 2001, but not submitted for inclusion
in the Fund's proxy statement, must be received by the Fund no later than the
close of business on March 23, 2001. The deadline for submitting stockholder
proposals for inclusion in the Fund's proxy statement for the 2001 meeting
remains February 23, 2001.
12
<PAGE>
Directors
Michael J. Downey, Chairman
David J. Brennan
Robert H. Burns
Olarn Chaipravat
Robert F. Gunia
John A. Morrell
Douglas Tong Hsu
David G. P. Scholfield
Officers
Ronald G. M. Watt, President
Robert F. Gunia, Vice President and Treasurer
Linda McMullin, Assistant Treasurer
Christine Gerrity-Yacuk, Assistant Treasurer
Deborah A. Docs, Secretary
Vasso-Athene Spanos, Assistant Secretary
Investment Manager
Baring Asset Management (Asia) Limited
1901 Edinburgh Tower
15 Queen's Road Central
Hong Kong
Administrator
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Custodian and Transfer Agent
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Independent Accountants
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
The accompanying financial statements as of September 30, 2000
were not audited and, accordingly, no opinion is expressed on them.
This report, including the financial statements herein, is
transmitted to the shareholders of The Asia Pacific Fund, Inc. for
their information. This is not a prospectus, circular or
representation intended for use in the purchase of shares of the
Fund or any securities mentioned in this report.
The Asia Pacific Fund, Inc.
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
For general information on the Fund, please call (toll-free) Dewe
Rogerson Inc., our shareholders' servicing agent toll-free at:
(888) 4-ASIA-PAC
The Fund's Web Site address is:
www.asiapacific.com
The Fund's CUSIP number is
044901106
