<PAGE>
THE THAI FUND, INC.
---------------------------------------------
OFFICERS AND DIRECTORS
Frederick B. Whittemore Warren J. Olsen
CHAIRMAN OF THE BOARD PRESIDENT
OF DIRECTORS James W. Grisham
James J. Biundo VICE PRESIDENT
DIRECTOR Harold J. Schaaff, Jr.
Peter J. Chase VICE PRESIDENT
DIRECTOR Joseph P. Stadler
David B. Gill VICE PRESIDENT
DIRECTOR Valerie Y. Lewis
Graham E. Jones SECRETARY
DIRECTOR Hilary D. Toole
Sukri Kaocharern ASSISTANT SECRETARY
DIRECTOR James R. Rooney
Snoh Unakul TREASURER
DIRECTOR Timothy F. Osborne
ASSISTANT TREASURER
---------------------------------------------
U.S. INVESTMENT ADVISER
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
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THAI INVESTMENT ADVISER
The Mutual Fund Public Company Limited
30th-32nd Floor, Lake Rajada Building
193-195 Ratchadaphisek Road
Khlong-Toey, Bangkok 10110 Thailand
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ADMINISTRATOR
The United States Trust Company of New York
73 Tremont Street
Boston, Massachusetts 02108
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CUSTODIANS
The Thai Farmers Bank Limited
400 Phahon Yothin Road
Bangkok, Thailand
The United States Trust Company of New York
770 Broadway
New York, New York 10003
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SHAREHOLDER SERVICING AGENT
The First National Bank of Boston
Investor Relations Department
P.O. Box 644, Mail Stop 45-02-09
Boston, Massachusetts 02102-0644
(617) 575-2900
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LEGAL COUNSEL
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
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INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
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THE
THAI FUND,
INC.
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FIRST QUARTER REPORT
MARCH 31, 1995
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
<PAGE>
LETTER TO SHAREHOLDERS
- - --------
First quarter 1995 saw performance in the Thai equity market remain weak as the
problems from the fourth quarter of 1994 spilled over to 1995. For the quarter,
the Thai equity market, as measured by the US dollar-adjusted Securities
Exchange of Thailand (SET) Index, declined 8.76%. The Fund's net asset value per
share slightly outperformed the market, declining 7.99% for the quarter, while
the Fund's stock price declined 2.23% to $21 7/8 at March 31, 1995.
The major news affecting Thailand's markets during the quarter actually had
nothing to do with Thailand, but rather remained investors' skittishness over
emerging markets in general in the wake of the Mexican debacle. Against the
bearish sentiment during the quarter, the Thai equity market drifted down on
relatively low trading volumes.
Thailand's strong economy continues to provide support for the market and we
believe 1995 should be another year of 8% plus real GDP growth and inflation in
the 5% range. This strong economic growth coupled with reasonable valuations of
14-15x estimated 1995 earnings keeps the Thai market looking attractive to our
portfolio managers.
We continue to keep the Fund fully invested. The Fund's largest sector exposures
continue to be banking (26% of the Fund's net assets versus a 21% Index
weighting), telecommunications (21% vs. 19%), financial services (19% vs. 11%),
and building materials (11% vs. 10%). Our largest individual holdings remain
Thai Farmers Bank (9.5% of the Fund's net assets), Bangkok Bank (9.0%), Siam
Cement (8.2%), TelecomAsia (6.4%), and Siam Commercial Bank (5.8%).
We appreciate your support of the Fund and look forward to a stronger Thai
equity market for the remainder of the year.
Sincerely,
[SIGNATURE]
Warren J. Olsen
PRESIDENT
April 26, 1995
2
<PAGE>
INVESTMENTS (UNAUDITED)
- - ---------
MARCH 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- - ---------------------------------------------------------
- - ------------
THAI INVESTMENT PLAN (103.3%)
- - ---------------------------------------------------------
- - ------------
THAI COMMON STOCKS (102.6%)
(Unless otherwise noted)
- - ------------------------------------------------------------
- - -------------
APPLIANCES & HOUSEHOLD DURABLES (1.0%)
Singer Thailand, Ltd. (Local) 334,875 U.S.$ 2,557
Sri Charoen Industries, Ltd.
(Local) 173,900 812
------------
3,369
------------
- - ------------------------------------------------------------
- - -------------
AUTOMOBILES (1.2%)
Swedish Motor Corp., Ltd.
(Local) 890,000 3,777
Swedish Motor Corp., Ltd.
(Warrants), expiring 9/25/98 56,080 162
------------
3,939
------------
- - ------------------------------------------------------------
- - -------------
BANKING (25.9%)
Bangkok Bank Ltd. (Local) 4,020,000 29,222
Industrial Finance Corp. of
Thailand (Local) 980,653 1,991
Siam City Bank, Ltd. (Local) 2,100,000 1,961
Siam Commercial Bank Co., Ltd.
(Local) 2,600,000 18,688
Thai Farmers Bank, Ltd.
(Foreign) 4,724,000 30,694
Thai Military Bank, Ltd.
(Local) 550,000 1,563
------------
84,119
------------
- - ------------------------------------------------------------
- - -------------
BEVERAGES & TOBACCO (1.1%)
The Serm Suk Co., Ltd. (Local) 356,692 3,447
------------
- - ------------------------------------------------------------
- - -------------
BROADCASTING & PUBLISHING (0.2%)
Post Publishing Co., Ltd.
(Local) 116,600 518
------------
- - ------------------------------------------------------------
- - -------------
BUILDING MATERIALS & COMPONENTS (11.4%)
American Standard Sanitaryware
Thailand, Ltd. (Local) 75,150 1,251
Siam Cement Co., Ltd. (Local) 473,000 26,469
Siam City Cement Co., Ltd.
(Local) 620,000 9,417
------------
37,137
------------
- - ------------------------------------------------------------
- - -------------
CHEMICALS (1.5%)
Thai Carbon Black Co., Ltd.
(Local) 225,000 1,142
Thai Petrochemical Industry
Ltd. 975,000 1,663
TPI Polene Co., Ltd. (Local) 314,800 1,713
Vinythai Co. 250,000 447
------------
4,965
------------
- - ------------------------------------------------------------
- - -------------
CONSTRUCTION & HOUSING (0.6%)
Italian-Thai Development Corp. 196,000 2,085
------------
</TABLE>
- - -----------------------------------------------------------------
- - -------------
<TABLE>
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- - ---------------------------------------------------------
- - ------------
ELECTRICAL & ELECTRONICS (4.1%)
K.R. Precision (Local) 65,000 U.S.$ 290
Shinawatra Computer Co., Ltd.
(Local) 600,000 12,865
------------
13,155
------------
- - ------------------------------------------------------------
- - -------------
ENERGY SOURCES (4.6%)
Banpu Public Co., Ltd. (Local) 198,000 3,682
Electricity Generating Public
Co. (Local) 2,000,000 4,995
PTT Exploration & Production
Co., Ltd. (Local) 680,000 6,241
------------
14,918
------------
- - ------------------------------------------------------------
- - -------------
FINANCIAL SERVICES (18.9%)
Asia Credit, Ltd. (Local) 454,000 2,599
Dhana Siam Finance &
Securities Co., Ltd. (Local) 2,690,000 12,672
Finance One Co. Ltd. (Local) 3,000,000 14,497
General Finance & Securities
Co., Ltd. (Local) 260,000 1,045
National Finance & Securities
Co., Ltd. (Local) 4,129,800 13,333
National Finance & Securities
Co., Ltd. (Foreign) 70,200 227
National Finance & Securities
Co., Ltd. (Foreign)
(Warrants), expiring 11/15/99 836,000 --
Phatra Thanakit Co., Ltd.
(Local) 1,750,000 10,873
Securities One, Ltd. (Local) 202,500 1,242
Thai Investment & Securities
Co., Ltd. (Local) 183,300 4,883
------------
61,371
------------
- - ------------------------------------------------------------
- - -------------
FOOD & HOUSEHOLD PRODUCTS (0.3%)
Berli Jucker Co., Ltd. (Local) 338,580 825
------------
- - ------------------------------------------------------------
- - -------------
HEALTH & PERSONAL CARE (0.2%)
Bumrungrad Hospital Co., Ltd.
(Local) 266,000 572
------------
- - ------------------------------------------------------------
- - -------------
INSURANCE (1.2%)
Ayudhya Life Assurance Co.,
Ltd. (Local) 131,075 1,107
Bangkok Insurance Co., Ltd.
(Local) 161,804 2,694
------------
3,801
------------
- - ------------------------------------------------------------
- - -------------
METALS -- STEEL (0.3%)
Sahaviriya Steel Industry
(Local) 351,300 927
------------
- - ------------------------------------------------------------
- - -------------
MISCELLANEOUS MATERIALS & COMMODITIES (0.3%)
Alucan Manufacturing Co., Ltd.
(Local) 184,300 786
Thai Modern Plastic Industry
Co., Ltd. (Local) 52,400 188
------------
974
------------
- - ------------------------------------------------------------
- - -------------
MULTI INDUSTRY (0.4%)
Loxley Co., Ltd. (Local) 73,700 1,413
------------
</TABLE>
- - -----------------------------------------------------------------
- - -------------
3
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- - ---------------------------------------------------------
- - ------------
REAL ESTATE (4.7%)
Land & House Co., Ltd. (Local) 715,600 U.S.$ 10,519
MDX Co., Ltd. (Local) 1,247,000 2,317
Prasit Development Co., Ltd.
(Local) 125,000 192
Quality House Co., Ltd.
(Local) 795,000 2,260
------------
15,288
------------
- - ------------------------------------------------------------
- - -------------
TELECOMMUNICATIONS (21.1%)
Advanced Information Services
Co., Ltd. (Local) 1,339,800 18,608
International Engineering Co.,
Ltd. (Local) 1,221,000 8,528
TelecomAsia Corp., Ltd.
(Local) 5,500,000 20,772
Thai Telephone &
Telecommunications Co. 1,000,000 7,553
United Communications Industry
(Local) 940,000 13,208
------------
68,669
------------
- - ------------------------------------------------------------
- - -------------
TEXTILES & APPAREL (0.0%)
Thai Rung Textile 3,832 51
------------
- - ------------------------------------------------------------
- - -------------
WHOLESALE & INTERNATIONAL TRADE (3.6%)
Charoen Pokphand Feedmill Co.,
Ltd. (Local) 1,044,200 6,573
International Cosmetics Co.,
Ltd. (Local) 331,287 5,005
------------
11,578
------------
- - ------------------------------------------------------------
- - -------------
TOTAL THAI COMMON STOCKS
(Cost U.S. $180,412) 333,121
------------
- - ------------------------------------------------------------
- - -------------
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
<S> <C> <C>
- - ---------------------------------------------------------
- - ------------
FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN (0.7%)
(Interest Bearing Demand Account)
Thai Baht THB 52,501 U.S.$ 2,132
(Cost U.S. $2,125)
------------
- - ------------------------------------------------------------
- - -------------
TOTAL THAI INVESTMENT PLAN
(Cost U.S. $182,537) 335,253
------------
- - ------------------------------------------------------------
- - -------------
SHORT TERM INVESTMENT (1.1%)
<CAPTION>
U.S. GOVERNMENT AGENCY OBLIGATION
<S> <C> <C>
Federal Home Loan Mortgage
Corp., 4/3/95
(Cost U.S. $3,599) U.S.$ 3,600 3,599
------------
- - ------------------------------------------------------------
- - -------------
TOTAL INVESTMENTS (104.4%)
(Cost U.S. $186,136) 338,852
------------
- - ------------------------------------------------------------
- - -------------
OTHER ASSETS AND LIABILITIES (-4.4%)
Other Assets 3,718
Liabilities (17,942) (14,224)
------------ ------------
- - ------------------------------------------------------------
- - -------------
NET ASSETS (100%)
Applicable to 12,464,576 issued and
outstanding U.S. $.01 par value shares
(30,000,000 shares authorized) U.S.$ 324,628
-------------
- - ------------------------------------------------------------
- - -------------
NET ASSET VALUE PER SHARE U.S.$ 26.04
-------------
- - ------------------------------------------------------------
- - -------------
</TABLE>
4
