<PAGE>
-------------------------------------------------------
THE
THAI FUND,
INC.
-------------------------------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1998
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
THE THAI FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Barton M. Biggs
CHAIRMAN OF THE BOARD
OF DIRECTORS
Michael F. Klein
PRESIDENT AND DIRECTOR
Peter J. Chase
DIRECTOR
John W. Croghan
DIRECTOR
David B. Gill
DIRECTOR
Graham E. Jones
DIRECTOR
Sukri Kaocharern
DIRECTOR
John A. Levin
DIRECTOR
William G. Morton, Jr.
DIRECTOR
Snoh Unakul
DIRECTOR
Stefanie V. Chang
VICE PRESIDENT
Harold J. Schaaff, Jr.
VICE PRESIDENT
Joseph P. Stadler
VICE PRESIDENT
Valerie Y. Lewis
SECRETARY
Joanna M. Haigney
TREASURER
Belinda A. Brady
ASSISTANT TREASURER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. INVESTMENT ADVISER
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
- --------------------------------------------------------------------------------
THAI INVESTMENT ADVISER
The Mutual Fund Public Company Limited
30th-32nd Floor, Lake Rajada Building
193-195 Ratchadaphisek Road
Khlong-Toey, Bangkok 10110 Thailand
- --------------------------------------------------------------------------------
ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
- --------------------------------------------------------------------------------
CUSTODIANS
The Thai Farmers Bank Public Company Limited
1 Soi Thai Farmers
Ratburana Road, Ratburana
Bangkok, Thailand
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
- --------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT
Boston Equiserve
Investor Relations Department
P.O. Box 644
Boston, Massachusetts 02102-0644
(800) 730-6001
- --------------------------------------------------------------------------------
LEGAL COUNSEL
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
- --------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For additional Fund information, including the Fund's net asset value per share
and information regarding the investments comprising the Fund's portfolio,
please call 1-800-221-6726.
<PAGE>
LETTER TO SHAREHOLDERS
- ----------
For the six months ended June 30, 1998, The Thai Fund, Inc. (the "Fund") had
a total return, based on net asset value per share, of -23.93% compared to
- -20.02% for the U.S. dollar adjusted Securities Exchange of Thailand (SET)
Index (the "Index"). For the one year ended June 30, 1998, and for the
period since the Fund's commencement of operations on February 16, 1988
through June 30, 1998, the Fund's total return, based on net asset value per
share, was -72.44% and -43.87%, respectively, compared to -70.29% and
- -52.16%, respectively, for the Index. On June 30, 1998, the closing price of
the Fund's shares on the New York Stock Exchange was $5.75, representing a
104.6% premium to the Fund's net asset value per share.
The Index recorded a miserable performance in the second quarter, falling
46.5% in U.S. dollar terms, more than erasing the strong gains of the first
quarter. The main causes of the market's weakness were the deep credit
crunch underway in Thailand and the depth of the current economic
contraction.
The Thai economy is heavily indebted, owing a significant amount of both
foreign currency denominated and local currency debt. Following the onset of
the economic crisis last year, Thai banks and corporations have found it
difficult to roll over all foreign loans as they have matured. In contrast
to the strong inflows from international lenders which accompanied the
economy's boom years, foreign debt repayments have turned into a drain on
domestic liquidity. To stabilize the baht following last year's dramatic
devaluation, the government has tightened monetary policy, raising interest
rates substantially. Companies which were facing maturing foreign debts were
now asked to pay much higher interest rates on their significant local
currency debt as well. Individuals also faced much higher payments on their
consumer debt. In this environment, consumption and investment have been
declining at double-digit rates relative to last year. Exports, which were
expected to lead the recovery, have actually fallen in U.S. dollar terms due
to regional competition and weak demand in key markets like electronics.
Thailand has now moved from a balance of payments crisis to a banking crisis.
At the end of the first quarter Thailand's two leading banks managed to raise
$1.8 billion of foreign equity capital, which helped them begin a much needed
recapitalization. However, as the quarter wore on and growth of
non-performing loans in the banking system accelerated, it became clear that
the banks would be unable to recapitalize solely with inflows from foreign
portfolio investors. When the third largest bank announced a large
capital-raising plan, its stock and the stocks of other weaker banks
collapsed. The Thai government is currently formulating plans to address the
banking crisis and will commence international capital-raising exercises to
fund their plans. The success of the government's banking sector plans and
Thailand's export performance will be the key factors determining the timing
and strength of the economic recovery, which is now generally expected to
begin in the middle or latter part of 1999.
Within this environment, the Fund has been overweight exporters and companies
with limited or no debt (BEC World, Eastern Water and PTT Exploration). We
have been underweight banks, property companies and companies sensitive to
declining investment, like building materials companies. Over the next year
we will be watching the recapitalization of the banks and the corporate
sector very closely, with a view that restructuring will yield profitable
investment opportunities.
Beginning with this report, we are discontinuing our practice of designating
an individual portfolio manager to sign our reports to shareholders in order
to better reflect the "Team" investment approach of the Fund's investment
adviser, Morgan Stanley Asset Management ("MSAM"). The global emerging
markets team at MSAM has general oversight of the investment management of
the Fund. Effective August 1, 1998, Timothy D. Jensen and Ashutosh Sinha
assumed primary responsibility for the day-to-day management of the Fund's
assets. Timothy Jensen joined MSAM in 1998. He is a Principal and a member
of MSAM's emerging markets group focusing primarily on the East Asian
markets. Prior to joining MSAM, he was a Partner at Ardsley Partners, where
he managed a portion of the emerging markets assets. Prior to that, he was a
Vice President at Bankers Trust, where he was responsible for management of a
Latin American equity portfolio. Ashutosh Sinha joined MSAM in 1995. He is
a Vice President and a member of MSAM's emerging markets group focusing
primarily on the East Asian and Middle Eastern markets. Prior to joining
MSAM, he spent two years at SBI Funds Management Ltd., where he was an
analyst for the India Magnum Fund. Previous to that, he worked for three
years as a consultant for Citicorp Overseas Software Ltd.
Sincerely,
/s/ Michael F. Klein
Michael F. Klein
PRESIDENT AND DIRECTOR
July 1998
2
<PAGE>
The Thai Fund, Inc.
Investment Summary as of June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HISTORICAL
INFORMATION TOTAL RETURN (%)
----------------------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2) INDEX (3)
---------------------- ---------------------- ----------------------
AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
---------- -------- ---------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Fiscal Year to Date 12.97% -- -23.93% -- -20.02% --
One Year -61.71 -61.71% -72.44 -72.44% -70.29 -70.29%
Five Year -58.63+ -16.18+ -78.98+ -26.80+ -81.79 -28.87
Ten Year -16.63+ -1.80+ -44.90+ -5.79+ -64.29 -9.78
Since Inception* 14.86+ 1.34+ -43.87+ -5.41+ -52.16 -6.86
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
[GRAPH]
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, SIX MONTHS
ENDED
JUNE 30,
1988* 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value Per Share.. $10.24 $ 18.88 $ 13.08 $15.41 $20.69 $39.42 $ 28.30 $24.89 $ 15.63 $ 3.81 $ 2.81
Market Value Per Share..... $11.75 $ 32.25 $ 16.00 $16.25 $18.75 $36.88 $ 22.38 $22.38 $ 16.38 $ 5.25 $ 5.75
Premium/(Discount)......... 14.7% 70.8% 22.3% 5.5% -9.4% -6.4% -20.9% -10.1% 4.8% 37.8% 104.6%
Income Dividends........... $ 0.29 $ 0.36 $ 0.21 $ 0.21 -- $ 0.36 $ 0.35 $ 0.11 $ 0.32 $ 0.11 $ 0.19
Capital Gains
Distributions............. -- $ 2.09 $ 1.68 $ 0.47 -- $ 0.51 $ 4.62 $ 3.38 $ 0.08 $ 0.12 --
Fund Total Return (2)...... -5.60% 109.87% -20.44% 23.08% 34.26% 98.90% -10.40%+ -0.10% -35.93% -75.17% -23.93%
Index Total Return (3)..... 3.90% 120.97% -28.60% 15.80% 24.71% 88.40% -17.76% -6.11% -36.25% -75.54% -20.02%
</TABLE>
(1) Assumes dividends and distributions, if any, were reinvested.
(2) Total investment return based on net asset value per share reflects the
effects of changes in net asset value on the performance of the Fund during
each period, and assumes dividends and distributions, if any, were
reinvested. These percentages are not an indication of the performance of a
shareholder's investment in the Fund based on market value due to
differences between the market price of the stock and the net asset value
per share of the Fund.
(3) The U.S. dollar adjusted Securities Exchange of Thailand (SET) Index is a
capitalization weighted index of all stocks traded on the Stock Exchange of
Thailand, including dividends.
* The Fund commenced operations on February 16, 1988.
+ This return does not include the effect of the rights issued in connection
with the Rights Offering.
3
<PAGE>
The Thai Fund, Inc.
Portfolio Summary as of June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DIVERSIFICATION OF TOTAL INVESTMENTS
[CHART]
<TABLE>
<S> <C>
Equity Securities (96.5%)
Short-Term Inverstment (3.5%)
</TABLE>
- --------------------------------------------------------------------------------
SECTORS
[CHART]
<TABLE>
<S> <C>
Banking (10.1%)
Beverages & Tobacco (16.2%)
Broadcasting & Publishing (11.0%)
Chemicals (4.3%)
Electronic Components & Instruments (5.8%)
Energy Sources (8.0%)
Insurance (5.0%)
Telecommunications (11.0)
Textiles & Apparel (4.3%)
Utilities -- Electrical & Gas (9.6%)
Other (14.7%)
</TABLE>
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. The Serm Suk Co., Ltd. 16.2%
2. BEC World Co., Ltd. 9.7
3. Advanced Information Services Co., Ltd 9.6
4. Eastern Water Resources Development Co., Ltd. 9.6
5. PTT Exploration & Production Public Co., Ltd. 7.6
6. Bangkok Bank Co., Ltd. 6.9
7. Compass East Industry Public Co., Ltd. 4.6
8. National Petrochemical Co., Ltd. 4.3
9. Thai Farmers Bank Co., Ltd. 3.1
10. Bangkok Insurance Co., Ltd. 3.1
----
74.7%
----
----
</TABLE>
4
<PAGE>
FINANCIAL STATEMENTS
- --------
STATEMENT OF NET ASSETS (UNAUDITED)
- --------
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES VALUE
(000)
--------------------------------------------------------------------------------
<S> <C> <C>
THAI INVESTMENT PLAN (101.1%)
--------------------------------------------------------------------------------
THAI COMMON STOCKS (99.5%)
(Unless otherwise noted)
--------------------------------------------------------------------------------
APPLIANCES & HOUSEHOLD DURABLES (0.2%)
Singer Thailand Public Co., Ltd. 165,800 U.S.$ 92
------------
--------------------------------------------------------------------------------
AUTOMOBILES (3.0%)
(a) Swedish Motor Co., Ltd. 1,371,100 58
(a) Thai Engine Manufacturing
Public Co., Ltd. 651,900 228
Thai Rung Union Car Co., Ltd. 219,400 69
(a) Thai Stanley Electric Co., Ltd. 715,000 339
(a) Thai Storage Battery Co., Ltd. 390,600 398
------------
1,092
------------
--------------------------------------------------------------------------------
BANKING (10.1%)
Bangkok Bank Co., Ltd. 2,486,100 2,563
Thai Farmers Bank Co., Ltd. 1,606,400 1,161
------------
3,724
------------
--------------------------------------------------------------------------------
BEVERAGES & TOBACCO (16.2%)
(a) The Serm Suk Co., Ltd. 1,265,500 5,998
------------
--------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (11.0%)
BEC World Co., Ltd. 929,600 3,590
(a) Nation Multimedia Group Co., Ltd. 975,100 208
(a,b) Nation Multimedia Group Co., Ltd. (Foreign) 824,900 274
------------
4,072
------------
--------------------------------------------------------------------------------
BUILDING MATERIALS & COMPONENTS (2.1%)
American Standard Sanitaryware Thailand Co., Ltd. 75,150 355
(a) Siam City Cement Co., Ltd. 550,147 391
(a) Tipco Asphalt Co., Ltd. 72,800 47
------------
793
------------
--------------------------------------------------------------------------------
CHEMICALS (4.3%)
(a) National Petrochemical Co., Ltd. 5,704,900 1,588
------------
--------------------------------------------------------------------------------
CONSTRUCTION & HOUSING (0.3%)
(a) Ch. Karnchang Public Co., Ltd. 100,000 97
------------
--------------------------------------------------------------------------------
ELECTRICAL & ELECTRONICS (2.5%)
Shinawatra Computer Co., Ltd. 330,000 931
------------
--------------------------------------------------------------------------------
ELECTRONIC COMPONENTS & INSTRUMENTS (5.8%)
Compass East Industry Public Co., Ltd. 286,400 1,683
KCE Electronics Public Co., Ltd. 120,000 444
------------
2,127
------------
--------------------------------------------------------------------------------
ENERGY SOURCES (8.0%)
Lanna Lignite Co., Ltd. 250,000 U.S.$ 172
(a) PTT Exploration & Production Public Co., Ltd. 54,900 416
(a) PTT Exploration & Production Public Co., Ltd.
(Foreign) 313,500 2,377
------------
2,965
------------
--------------------------------------------------------------------------------
FINANCIAL SERVICES (1.1%)
(a) National Finance & Securities
Public Co., Ltd. (Foreign) 2,241,000 175
Thai Investment & Securities Public Co., Ltd. 1,808,200 214
------------
389
------------
--------------------------------------------------------------------------------
FOOD & HOUSEHOLD PRODUCTS (1.9%)
Thai Glass Industries Co., Ltd. 205,200 326
(b) Thai Glass Industries Co., Ltd. (Foreign) 229,800 365
------------
691
------------
--------------------------------------------------------------------------------
INSURANCE (5.0%)
Bangkok Insurance Co., Ltd. 248,100 1,146
Dhipaya Insurance Co., Ltd. 783,800 706
------------
1,852
------------
--------------------------------------------------------------------------------
MISCELLANEOUS MATERIALS & COMMODITIES (2.6%)
(a) Charoen Pokphand Feedmill Co., Ltd. 1,317,900 968
------------
--------------------------------------------------------------------------------
REAL ESTATE (0.5%)
Land & House Co., Ltd. 1,082,978 192
------------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (11.0%)
Advanced Information Services Co., Ltd. 891,100 3,547
Shinawatra Satellite Public Co., Ltd. 1,700,000 524
------------
4,071
------------
--------------------------------------------------------------------------------
TEXTILES & APPAREL (4.3%)
Saha-Union Co., Ltd. 1,483,600 853
(a,b) Thai Rung Textile Co., Ltd. 3,832 --
Thai Wacoal Co., Ltd. 347,013 740
------------
1,593
------------
--------------------------------------------------------------------------------
UTILITIES - ELECTRICAL & GAS (9.6%)
Eastern Water Resources
Development Co., Ltd. 2,567,800 3,529
------------
--------------------------------------------------------------------------------
TOTAL THAI COMMON STOCKS
(Cost U.S.$104,214) 36,764
------------
--------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (1.6%)
(Interest Bearing Demand Account)
Thai Baht (Cost U.S.$671) THB 24,436 U.S.$ 579
-----------
- --------------------------------------------------------------------------------
TOTAL THAI INVESTMENT PLAN
(Cost U.S.$104,885) 37,343
-----------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (2.0%)
- --------------------------------------------------------------------------------
Repurchase Agreement (2.0%)
Chase Securities, Inc. 5.40% ,
dated 6/30/98, due 7/1/98,
to be repurchased at U.S.$736,
collateralized by U.S.$460,
United States Treasury Bonds,
11.25%, due 2/15/15, valued
at U.S.$756
(Cost U.S.$736) U.S.$ 736 736
-----------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (103.1%)
(Cost U.S.$105,621) 38,079
-----------
- --------------------------------------------------------------------------------
OTHER ASSETS (5.1%)
Receivable for Investments Sold 1,769
Interest Receivable 73
Other Assets 42 1,884
----------- -----------
- --------------------------------------------------------------------------------
LIABILITIES (-8.2%)
Thai Taxes (366)
Payable for:
Dividends Declared (2,433)
U.S. Investment Advisory Fees (45)
Professional Fees (45)
Shareholder Reporting Expenses (43)
Directors' Fees and Expenses (38)
Thai Investment Advisory Fees (32)
Custodian Fees (11)
Administrative Fees (11)
Other Liabilities (5) (2,663)
----------- -----------
- --------------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 13,160,950, issued
and outstanding U.S.$0.01 par value shares
(30,000,000 shares authorized) U.S.$ 36,934
-----------
-----------
- --------------------------------------------------------------------------------
NET ASSETS VALUE PER SHARE U.S.$ 2.81
-----------
-----------
<CAPTION>
AMOUNT
(000)
- --------------------------------------------------------------------------------
AT JUNE 30, 1998, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Common Stock U.S.$ 131
Capital Surplus 190,350
Accumulated Net Investment Loss (1,304)
Accumulated Net Realized Loss (84,755)
Unrealized Depreciation on Investments and
Foreign Currency Translations (67,488)
-----------
TOTAL NET ASSETS U.S.$36,934
-----------
-----------
- --------------------------------------------------------------------------------
</TABLE>
(a) -- Non-income producing
(b) -- Security valued at fair value - see note A-1 to financial statements.
June 30, 1998 exchange rate - Thai Baht (THB) 42.200=U.S.$1.00
NOTE: Prior governmental approval for foreign investments may be required
under certain circumstances in some emerging markets, and foreign
ownership limitations may also be imposed by the charters of
individual companies in emerging markets. As a result, an additional
class of shares designated as "foreign" may be created and offered for
investment. The "local" and "foreign" shares' market values may vary.
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1998
(UNAUDITED)
STATEMENT OF OPERATIONS (000)
- ---------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S.$ 365
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
- ---------------------------------------------------------------------------------------------------------
Total Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448
- ---------------------------------------------------------------------------------------------------------
EXPENSES
U.S. Investment Advisory Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
Thai Investment Advisory Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Professional Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Administrative Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Directors' Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Shareholder Reporting Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Custodian Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Transfer Agent Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
- ---------------------------------------------------------------------------------------------------------
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614
- ---------------------------------------------------------------------------------------------------------
Net Investment Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . (166)
- ---------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
Investment Securities Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52,904)
Foreign Currency Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
- ---------------------------------------------------------------------------------------------------------
Net Realized Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52,723)
- ---------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION
Appreciation on Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,834
Depreciation on Foreign Currency Translations . . . . . . . . . . . . . . . . . . . (1,933)
- ---------------------------------------------------------------------------------------------------------
Change in Unrealized Appreciation/Depreciation . . . . . . . . . . . . . . . . 41,901
- ---------------------------------------------------------------------------------------------------------
Total Net Realized Loss and Change in Unrealized Appreciation/Depreciation . . . . . . . (10,822)
- ---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . U.S.$ (10,988)
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
STATEMENT OF CHANGES IN NET ASSETS (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income (Loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S.$ (166) U.S.$ 4,334
Net Realized Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52,723) (28,984)
Change in Unrealized Appreciation/Depreciation. . . . . . . . . . . . . . . . . . . . 41,901 (127,506)
- ------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations. . . . . . . . . . . . . . . . . (10,988) (152,156)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,433) --
In Excess of Net Investment Income. . . . . . . . . . . . . . . . . . . . . . . . . . -- (1,482)
In Excess of Net Realized Gain. . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (1,522)
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,433) (3,004)
- ------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Reinvestment of Distributions (22,712 and 73,049 shares, respectively). . . . . . . . 243 1,063
- ------------------------------------------------------------------------------------------------------------------------------
Total Decrease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,178) (154,097)
Net Assets:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,112 204,209
- ------------------------------------------------------------------------------------------------------------------------------
End of Period (including undistributed net investment income
(accumulated net investment loss) of U.S.$(1,304) and U.S.$1,295,
respectively) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S.$ 36,934 U.S.$ 50,112
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
SELECTED PER SHARE DATA JUNE 30, 1998 ----------------------------------------------------------------------------
AND RATIOS: (UNAUDITED) 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD . . U.S.$ 3.81 U.S.$ 15.63 U.S.$ 24.89 U.S.$ 28.30 U.S.$ 39.42 U.S.$ 20.69
- -----------------------------------------------------------------------------------------------------------------------------------
Offering Costs . . . . . . . . . . . . . -- -- -- -- (0.05) --
- -----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) . . . . . . (0.01) 0.33 0.31 0.38 0.32 0.35
Net Realized and Unrealized Gain
(Loss) on Investments . . . . . . . . (0.80) (11.92) (9.15) (0.19) (5.08) 19.27
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations . (0.81) (11.59) (8.84) 0.19 (4.76) 19.62
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income . . . . . . . . (0.19) -- -- (0.06) (0.35) (0.31)
In Excess of Net Investment Income . -- (0.11) (0.32) (0.05) -- (0.05)
Net Realized Gain . . . . . . . . . . -- -- (0.08) (3.23) (4.62) (0.45)
In Excess of Net Realized Gain . . . -- (0.12) -- (0.15) -- (0.06)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions . . . . . . . . (0.19) (0.23) (0.40) (3.49) (4.97) (0.87)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Asset Value due to
Capital Share Transations . . . . -- -- (0.02)+ (0.11)+ (1.34)++ (0.02)+
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD . . . . . U.S.$ 2.81 U.S.$ 3.81 U.S.$ 15.63 U.S.$ 24.89 U.S.$ 28.30 U.S.$ 39.42
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE MARKET VALUE, END OF PERIOD. . U.S.$ 5.75 U.S.$ 5.25 U.S.$ 16.38 U.S.$ 22.38 U.S.$ 22.38 U.S.$ 36.88
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN:
Market Value. . . . . . . . . . . . . 12.97% (67.35)% (25.33)% 13.70% (24.30)%+++ 104.90%
Net Asset Value (1). . . . . . . . . . (23.93)% (75.17)% (35.93)% (0.10)% (10.40)%+++ 98.90%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS, SUPPLEMENTAL DATA:
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (THOUSANDS). . U.S.$36,934 U.S.$ 50,112 U.S.$204,209 U.S.$312,965 U.S.$343,840 U.S.$ 400,967
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses Excluding Thai Tax
to Average Net Assets . . . . . . . . 2.07%* 1.44% 1.19% 1.17% 1.13% 1.22%
Ratio of Total Expenses to Average Net
Assets . . . . . . . . . . . . . . . 2.07%* 1.44% 1.43% 1.30% 1.22% 1.38%
Ratio of Net Investment Income (Loss)
to Average Net Assets . . . . . . . . (0.56)%* 3.14% 1.42% 1.35% 1.01% 1.42%
Portfolio Turnover Rate . . . . . . . . 36% 22% 24% 26% 22% 22%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized
+ Decrease due to shares issued on reinvestment of distributions.
++ Consists of U.S.$0.09 per share decrease from reinvestment of
distributions and U.S.$1.25 per share decrease due to common stock
issued through Rights Offering during the year.
+++ This return does not include the effect of the rights issued in
connection with the Rights Offering.
(1) Total investment return based on net asset value per share reflects
the effects of changes in net asset value on the performance of the
Fund during each period, and assumes dividends and distributions, if
any, were reinvested. This percentage is not an indication of the
performance of a shareholder's investment in the Fund based on market
value due to differences between the market price of the stock and the
net asset value per share of the Fund.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1998
- -----------
The Thai Fund, Inc. (the "Fund") was incorporated on June 10, 1987 and
is registered as a non-diversified, closed-end management investment company
under the Investment Company Act of 1940, as amended. The Fund's investment
objective is long-term capital appreciation through investments primarily in
equity securities. The Fund makes its investments in Thailand through the
Thai Investment Plan (the "Plan") established in conformity with Thai law.
The Fund is the sole unit holder of the Plan. The accompanying financial
statements are prepared on a consolidated basis and present the financial
position and results of operations of the Plan and the Fund.
A. The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such
policies are consistently followed by the Fund in the preparation of its
financial statements. Generally accepted accounting principles may require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results may differ from
those estimates.
1. SECURITY VALUATION: In valuing the Fund's assets, all listed securities for
which market quotations are readily available are valued at the last sales
price on the valuation date, or if there was no sale on such date, at the
mean between the current bid and asked prices. Securities which are traded
over-the-counter are valued at the average of the mean of current bid and
asked prices obtained from reputable brokers. Short-term securities which
mature in 60 days or less are valued at amortized cost. All other
securities and assets for which market values are not readily available
(including investments which are subject to limitations as to their
sale) are valued at fair value as determined in good faith by the Board of
Directors (the "Board"), although the actual calculations may be done by
others.
2. TAXES: It is the Fund's intention to continue to qualify as a regulated
investment company and distribute all of its taxable income. Accordingly,
no provision for U.S. Federal income taxes is required in the financial
statements.
Distributions of income from the Plan to the Fund are subject to Thai
income tax which is withheld at a rate of 10% of the local currency gross
distribution amount. All distributions from the Plan to the Fund must be
approved by The Bank of Thailand ("BOT") pursuant to the laws of The
Kingdom of Thailand. For financial statement purposes, the Fund allocates
the Thai income tax to net investment income, net realized gains and net
unrealized appreciation on the basis of their relative amounts. For U.S.
Federal income tax purposes, the Thai income tax is deducted, when paid,
from net investment income.
3. REPURCHASE AGREEMENTS: In connection with transactions in repurchase
agreements, a bank as custodian for the Fund takes possession of the
underlying securities, with a market value at least equal to the amount of
the repurchase transaction, including principal and 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 determine
the adequacy of the collateral. In the event of default on the obligation
to repurchase, the Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal
proceedings.
4. FOREIGN CURRENCY TRANSLATION: The books and records of the Fund are
maintained in U.S. dollars. Amounts denominated in Thai baht are translated
into U.S. dollars at the mean of the bid and asked prices of such currency
against U.S. dollars last quoted by a major bank as follows:
- investments, other assets and liabilities at the prevailing rate of
exchange on the valuation date;
- investment transactions and investment income at the prevailing rate
of exchange on the dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange
rate and market values at the close of the period, the Fund does not
isolate that portion of the results of operations arising as a result of
changes in the foreign exchange rate from the fluctuations arising from
changes in the market prices of the securities held at period end.
Similarly, the Fund does not isolate the effect of changes in the foreign
exchange rate from the fluctuations arising from changes in the market
prices of securities sold during the period. Accordingly, realized and
unrealized foreign currency gains (losses) are included in the reported net
realized and unrealized gains (losses) on investment transactions and
balances.
Net realized gains (losses) on foreign currency transactions represent net
foreign exchange gains (losses) from sales and maturities of foreign
currency exchange contracts, dispositions of foreign currency, currency
gains or losses realized between the trade and settlement dates on
securities transactions, and the difference between the amount of
investment income recorded on the Fund's books and the U.S. dollar
equivalent amounts actually received or paid. Net
9
<PAGE>
unrealized currency gains (losses) from valuing foreign currency
denominated assets and liabilities at period end exchange rates are
reflected as a component of unrealized appreciation (depreciation) on
investments and foreign currency translations in the Statement of Net
Assets. The change in net unrealized currency gains (losses) for the
period is reflected in the Statement of Operations.
The Fund intends to use derivatives more actively than it has in the past.
The Fund intends to engage in transactions in futures contracts on foreign
currencies, stock indices, as well as in options, swaps and structured notes.
Consistent with the Fund's investment objectives and policies, the Fund
intends to use derivatives for non-hedging as well as hedging purposes.
Following is a description of derivative instruments and their associated
risks that the Fund intends to utilize:
5. FOREIGN CURRENCY EXCHANGE CONTRACTS: The Fund may enter into foreign
currency exchange contracts generally to attempt to protect securities and
related receivables and payables against changes in future foreign exchange
rates and, in certain situations, to gain exposure to a foreign currency. A
foreign currency exchange contract is an agreement between two parties to
buy or sell currency at a set price on a future date. The market value of
the contract will fluctuate with changes in currency exchange rates. The
contract is marked-to-market daily and the change in market value is
recorded by the Fund as unrealized gain or loss. The Fund records realized
gains or losses when the contract is closed equal to the difference between
the value of the contract at the time it was opened and the value at the
time it was closed. Risk may arise upon entering into these contracts from
the potential inability of counterparties to meet the terms of their
contracts and is generally limited to the amount of unrealized gain on the
contracts, if any, at the date of default. Risks may also arise from
unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.
6. FORWARD COMMITMENTS AND WHEN-ISSUED/DELAYED DELIVERY SECURITIES: The Fund
may make forward commitments to purchase or sell securities. Payment and
delivery for securities which have been purchased or sold on a forward
commitment basis can take place a month or more (not to exceed 120 days)
after the date of the transaction. Additionally, the Fund may purchase
securities on a when-issued or delayed delivery basis. Securities purchased
on a when-issued or delayed delivery basis are purchased for delivery
beyond the normal settlement date at a stated price and yield, and no
income accrues to the Fund on such securities prior to delivery. When the
Fund enters into a purchase transaction on a when-issued or delayed
delivery basis, it either establishes a segregated account in which it
maintains liquid assets in an amount at least equal in value to the Fund's
commitments to purchase such securities or denotes such securities on the
custody statement for its regular custody account. Purchasing securities on
a forward commitment or when-issued or delayed-delivery basis may involve a
risk that the market price at the time of delivery may be lower than the
agreed upon purchase price, in which case there could be an unrealized loss
at the time of delivery.
7. SWAP AGREEMENTS: The Fund may enter into swap agreements to exchange the
return generated by one security, instrument or basket of instruments for
the return generated by another security, instrument or basket of
instruments. The following summarizes swaps which may be entered into by
the Fund:
INTEREST RATE SWAPS: Interest rate swaps involve the exchange of
commitments to pay and receive interest based on a notional principal
amount. Net periodic interest payments to be received or paid are accrued
daily and are recorded in the Statement of Operations as an adjustment to
interest income. Interest rate swaps are marked-to-market daily based upon
quotations from market makers and the change, if any, is recorded as
unrealized appreciation or depreciation in the Statement of Operations.
TOTAL RETURN SWAPS: Total return swaps involve commitments to pay interest
in exchange for a market-linked return based on a notional amount. To the
extent the total return of the security, instrument or basket of
instruments underlying the transaction exceeds or falls short of the
offsetting interest obligation, the Fund will receive a payment from or
make a payment to the counterparty, respectively. Total return swaps are
marked-to-market daily based upon quotations from market makers and the
change, if any, is recorded as unrealized gains or losses in the Statement
of Operations. Periodic payments received or made at the end of each
measurement period, but prior to termination, are recorded as realized
gains or losses in the Statement of Operations.
Realized gains or losses on maturity or termination of interest rate and
total return swaps are presented in the Statement of Operations. Because
there is no organized market for these swap agreements, the value reported
in the Statement of Net Assets may differ from that which would be realized
in the event the Fund terminated its position in the agreement. Risks may
arise upon entering into these agreements from the potential inability of
the counterparties to meet the terms of the agreements and are generally
limited to the amount of net interest payments to be received and/or
favorable movements in the value of the underlying security, instrument or
basket of instruments, if any, at the date of default.
10
<PAGE>
8. STRUCTURED SECURITIES: The Fund may invest in interests in entities
organized and operated solely for the purpose of restructuring the
investment characteristics of sovereign debt obligations. This type of
restructuring involves the deposit with or purchase by an entity of
specified instruments and the issuance by that entity of one or more
classes of securities ("Structured Securities") backed by, or representing
interests in, the underlying instruments. Structured Securities generally
will expose the Fund to credit risks of the underlying instruments as well
as of the issuer of the structured security. Structured Securities are
typically sold in private placement transactions with no active trading
market. Investments in structured securities may be more volatile than
their underlying instruments, however, any loss is limited to the amount of
the original investment.
9. OVER-THE-COUNTER TRADING: Derivative instruments that may be purchased or
sold by the Fund are expected to regularly consist of instruments not
traded on an exchange. The risk of nonperformance by the obligor on such an
instrument may be greater, and the ease with which the Fund can dispose of
or enter into closing transactions with respect to such an instrument may
be less, than in the case of an exchange-traded instrument. In addition,
significant disparities may exist between bid and asked prices for
derivative instruments that are not traded on an exchange. Derivative
instruments not traded on exchanges are also not subject to the same type
of government regulation as exchange traded instruments, and many of the
protections afforded to participants in a regulated environment may not be
available in connection with such transactions.
10. OTHER: Security transactions are accounted for on the date the securities
are purchased or sold. Realized gains and losses on the sale of investment
securities are determined on the specific identified cost basis. Interest
income is recognized on the accrual basis. Dividend income is recorded on
the ex-dividend date (except certain dividends which may be recorded as
soon as the Fund is informed of such dividend) net of applicable
withholding taxes where recovery of such taxes is not reasonably assured.
Distributions to shareholders are recorded on the ex-date.
The amount and character of income and capital gain distributions to be
paid are determined in accordance with Federal income tax regulations which
may differ from generally accepted accounting principles. These differences
are primarily due to differing book and tax treatments for foreign currency
transactions, foreign taxes on net realized gains and gains on certain
securities of corporations designated as "passive foreign investment
companies". These differences are also primarily due to differing book and
tax treatments of the timing of the recognition of losses on securities and
the timing of the deductibility of certain foreign taxes.
Permanent book and tax basis differences relating to shareholder
distributions may result in reclassifications to undistributed net
investment income (loss), accumulated net realized gain (loss) and capital
surplus.
Adjustments for permanent book-tax differences, if any, are not reflected
in ending undistributed net investment income (loss) for the purpose of
calculating net investment income (loss) per share in the financial
highlights.
B. Morgan Stanley Asset Management Inc. (the "U.S. Adviser") provides
investment advisory services to the Fund under the terms of an Investment
Advisory Agreement (the "Agreement"). Under the Agreement, the U.S. Adviser
is paid a fee computed weekly and payable monthly at an annual rate of 0.90%
of the Fund's first $50 million of average weekly net assets, 0.70% of the
Fund's next $50 million of average weekly net assets and 0.50% of the Fund's
average weekly net assets in excess of $100 million.
C. The Mutual Fund Public Company Limited (the "Thai Adviser") provides
investment advisory services to the Fund under the terms of a contract. Under
the contract, the Thai Adviser is paid a fee computed weekly and payable
monthly at an annual rate of 0.40% of the Fund's first $50 million of
average weekly net assets, 0.25% of the Fund's next $50 million of average
weekly net assets and 0.20% of the Fund's average weekly net assets in excess
of $100 million.
D. The Chase Manhattan Bank, through its corporate affiliate Chase Global
Funds Services Company (the "Administrator"), provides administrative
services to the Fund under an Administration Agreement. Under the
Administration Agreement, the Administrator is paid a fee computed weekly and
payable monthly at an annual rate of 0.05% of the Fund's average weekly net
assets, plus $100,000 per annum. In addition, the Fund is charged certain
out-of-pocket expenses by the Administrator. The Chase Manhattan Bank, acts
as custodian for the Fund's assets held in the United States.
E. During the six months ended June 30, 1998, the Fund made purchases and
sales totaling $21,261,000 and $20,256,000, respectively, of investment
securities other than long-term U.S. Government securities and short-term
investments. There were no purchases or sales of long-term U.S. Government
securities. At June 30, 1998, the U.S. Federal income tax cost basis of
securities was $104,950,000 and, accordingly, net unrealized depreciation for
U.S. Federal income tax purposes was $67,450,000, of which $643,000 related
to appreciated securities and $68,093,000 related to depreciated securities.
At December 31, 1997, the Fund had a capital loss carryforward for U.S.
Federal income tax purposes of approximately $23,692,000
11
<PAGE>
which will expire on December 31, 2005. To the extent that capital gains are
offset, such gains will not be distributed to the shareholders.
F. A significant portion of the Fund's net assets consist of investments in
the Thai Investment Plan, including Thai equity securities, which may be
subject to greater price volatility, lower liquidity and less diversity than
equity securities of companies based in the United States. In addition, Thai
equity securities may be subject to substantial governmental involvement in
the economy and greater social, economic and political uncertainty.
G. Each Director of the Fund who is not an officer of the Fund or an
affiliated person as defined under the Investment Company Act of 1940, as
amended, may elect to participate in the Directors' Deferred Compensation
Plan (the "Plan"). Under the Plan, such Directors may elect to defer payment
of a percentage of their total fees earned as a Director of the Fund. These
deferred portions are treated, based on an election by the Director, as if
they were either invested in the Fund's shares or invested in U.S. Treasury
Bills, as defined under the Plan. The deferred fees payable, under the Plan,
at June 30, 1998 totaled $22,000 and are included in Payable for Directors'
Fees and Expenses on the Statement of Net Assets.
H. During June 1998, the Board declared a distribution of $0.19 per share,
derived from net investment income, payable on July 27, 1998, to shareholders
of record on July 1, 1998. Also in June, the Board of Directors amended your
Fund's by-laws to require advance notice of any proposals to be made at
stockholders' meetings. For annual meetings the notice must be given to the
Fund's secretary at least 60 days before the anniversary date of the previous
year's annual meeting. This year's annual meeting of stockholders was held
on June 24. This provision was adopted to permit the Fund's stockholders and
Directors to consider every stockholder proposal on an informed basis and in
an organized fashion, taking into account the interests of all affected
constituencies.
I. Supplemental Proxy Information
The Annual Meeting of the Stockholders of The Thai Fund, Inc. was held on
June 24, 1998. The following is a summary of each proposal presented and the
total number of shares voted:
<TABLE>
<CAPTION>
VOTES IN VOTES AUTHORITY VOTES
PROPOSAL: FAVOR OF AGAINST WITHHELD ABSTAINED
- --------- ----------- ------- --------- ---------
<S> <C> <C> <C> <C>
1. To elect the following Directors: Michael F. Klein . . . . 7,415,065 -- 231,851 --
Barton M. Biggs. . . . . 7,455,750 -- 191,167 --
John A. Levin. . . . . . 7,452,826 -- 194,090 --
William G. Morton, Jr. . 7,435,968 -- 210,948 --
Sukri Kaocharern . . . . 7,415,498 -- 231,418 --
2. To ratify the selection of PricewaterhouseCoopers LLP
as independent accountants of the Fund . . . . . . . . . . . 7,501,553 72,492 -- 72,871
</TABLE>
12
<PAGE>
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
Pursuant to the Dividend Reinvestment and Cash Purchase Plan (the
"Plan"), each shareholder will be deemed to have elected, unless Boston
Equiserve (the "Plan Agent") is otherwise instructed by the shareholder in
writing, to have all distributions automatically reinvested in Fund shares.
Participants in the Plan have the option of making additional voluntary cash
payments to the Plan Agent, annually, in any amount from $100 to $3,000, for
investment in Fund shares.
Dividend and capital gain distributions will be reinvested on the
reinvestment date in full and fractional shares. If the market price per
share equals or exceeds net asset value per share on the reinvestment date,
the Fund will issue shares to participants at net asset value. If net asset
value is less than 95% of the market price on the reinvestment date, shares
will be issued at 95% of the market price. If net asset value exceeds the
market price on the reinvestment date, participants will receive shares
valued at market price. The Fund may purchase shares of its Common Stock in
the open market in connection with dividend reinvestment requirements at the
discretion of the Board of Directors. Should the Fund declare a dividend or
capital gain distribution payable only in cash, the Plan Agent will purchase
Fund shares for participants in the open market as agent for the
participants.
The Plan Agent's fees for the reinvestment of dividends and
distributions will be paid by the Fund. However, each participant's account
will be charged a pro rata share of brokerage commissions incurred on any
open market purchases effected on such participant's behalf. A participant
will also pay brokerage commissions incurred on purchases made by voluntary
cash payments. Although shareholders in the Plan may receive no cash
distributions, participation in the Plan will not relieve participants of any
income tax which may be payable on such dividends or distributions.
In the case of shareholders, such as banks, brokers or nominees, which
hold shares for others who are the beneficial owners, the Plan Agent will
administer the Plan on the basis of the number of shares certified from time
to time by the shareholder as representing the total amount registered in the
shareholder's name and held for the account of beneficial owners who are
participating in the Plan.
Shareholders who do not wish to have distributions automatically
reinvested should notify the Plan Agent in writing. There is no penalty for
non-participation or withdrawal from the Plan, and shareholders who have
previously withdrawn from the Plan may rejoin at any time. Requests for
additional information or any correspondence concerning the Plan should be
directed to the Plan Agent at:
The Thai Fund, Inc.
Boston Equiserve
Dividend Reinvestment and Cash Purchase Plan
P.O. Box 1681
Boston, MA 02105-1681
1-800-730-6001
13
