MERRILL
LYNCH
DEVELOPING
CAPITAL
MARKETS
FUND, INC.
Quarterly Report March 31, 1994
Investing in emerging market securities involves a number
of risk factors and special considerations, including
restrictions on foreign investments and on repatriation
of capital invested in emerging markets, currency fluctua-
tions, and potential price volatility and less liquidity of
securities traded in emerging markets. In addition, there
may be less publicly available information about the
issuers of securities, and such issuers may not be subject
to accounting, auditing and financial reporting standards
and requirements comparable to those to which US com-
panies are subject. Therefore, the Fund is designed as a
long-term investment for investors capable of assuming
the risks of investing in emerging markets. The Fund
should be considered as a vehicle for diversification and
not as a complete investment program. Please refer to the
prospectus for details.
This report is not authorized for use as an offer of sale
or solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus.
Past performance results shown in this report should not be
considered a representation of future performance. Invest-
ment return and principal value of shares will fluctuate so
that shares, when redeemed, may be worth more or less than
their original cost.
Merrill Lynch
Developing Capital Markets Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
Merrill Lynch Developing Capital Markets Fund, Inc.
GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX
GRAPHIC AND IMAGE MATERIAL: Item 1
DEAR SHAREHOLDER
During the quarter ended March 31, 1994, Merrill Lynch Developing
Capital Market Fund, Inc.'s total return was -5.77%. During the same
period, the unmanaged Morgan Stanley Emerging Markets Free Index de-
clined 9.3%, a decrease led mainly by the Asian markets, partic-
ularly Malaysia and Thailand, and Turkey. Supporting the Fund's per-
formance were its underweighting in Asian markets at the start of
the year and its relatively large cash position. We had refrained
from investing aggressively early in the quarter, having noted the
extreme bullishness regarding emerging markets, particularly Asia,
which prevailed at that time. (Complete performance information,
including average annual total returns, can be found on page 3 of
this report to shareholders.)
Key Developments & Activities
Early in the period, we further reduced our position in Asia, par-
ticularly in Hong Kong, and refrained from aggressively investing
the Fund's incoming cash. Therefore, we raised our cash position to
more than 20% by the middle of the quarter.
During the quarter, we started investing directly in several new
markets including Morocco, Poland, and the Czech Republic. These coun-
tries' capital markets are still in the early stages of development,
and their inefficiencies offer superior investment opportunities com-
pared to those in the more mature emerging markets. We expect their
economies to grow at an accelerating rate in the coming years. In Mor-
occo and in the Czech Republic, politics are stable, while in Poland,
despite the change in leadership, economic policies continue along
free-market lines. We purchased several stocks in the March quarter,
including Wafa Bank, Podnik Vypocetni Techniky (PVT) and Elektrim Tow-
arzystwo Handlowe S.A.
Wafa Bank is Morocco's fourth largest bank and one of the most profit-
able in the country. Growth for Wafa is expected to come not only from
traditional banking services, but also through specialized financial
services such as insurance and leasing.
PVT is the leading computer services company in the Czech Republic.
Since business and government entities are still in the early phases
of organization, demand for PVT's services is strong.
<PAGE>
Elektrim is the dominant power generation and industrial equipment
company in Poland. The company is benefiting from increasing demand
for power generation equipment in both the foreign and domestic
markets.
Investment Outlook
We continue to hold a positive view on emerging markets despite their
recent declines. However, with US interest rates having bottomed, we
believe that stock market performance in the near term will likely be
determined more by fundamentals rather than by liquidity, momentum
or speculation. Having accumulated a large cash position (16.4% of net
assets at March quarter-end), we plan to selectively increase the Fund's
investments in the coming weeks.
In Conclusion
We thank you for your continued investment in Merrill Lynch Develop-
ing Capital Markets Fund, Inc., and we look forward to reviewing our
outlook and strategy with you in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Grace Pineda)
Grace Pineda
Vice President and Portfolio Manager
April 25, 1994
PERFORMANCE DATA
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of shares
will fluctuate so that shares, when redeemed, may be worth more or less
than their original cost.
<TABLE>
Performance
Summary
<CAPTION>
<PAGE>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
9/1/89--12/31/89 $ 9.60 $10.13 $0.004 $0.132 + 6.97%
1990 10.13 9.04 -- 0.640 - 5.33
1991 9.04 10.89 -- 0.252 +23.35
1992 10.89 10.18 0.324 0.518 + 0.85
1993 10.18 16.80 0.278 0.069 +68.96
1/1/94--3/31/94 16.80 15.83 -- -- - 5.77
------ ------
Total $0.606 Total $1.611
Cumulative total return as of 3/31/94: +100.59%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and
do not include sales charge; results would be lower if sales
charge or redemption fee was included.
</TABLE>
<TABLE>
Recent
Performance
Results*
<CAPTION> 12 Month 3 Month
3/31/94 12/31/93 3/31/93 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Developing Capital Markets Fund, Inc. $15.83 $16.80 $11.09 +45.31%(1) -5.77%
ML Developing Capital Markets Fund, Inc.--Total Return +46.14(2) -5.77
<FN>
*Investment results shown for the 3-month and 12-month periods are
before the deduction of any sales charges.
(1)Percent change includes reinvestment of $0.278 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.069 per share ordinary
income dividends and $0.278 per share capital gains distributions.
</TABLE>
<PAGE>
Average Annual
Total Return
% Return Without % Return With
Period Covered Sales Charge Sales Charge*
Year Ended 3/31/94 +46.14% +36.64%
Inception (9/1/89) through 3/31/94 +16.41 +14.72
[FN]
*Assuming maximum sales charge. Maximum sales charge is 6.5%.
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Percent of
AFRICA Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Morocco Banking 5,000 Banque Marocaine Commerciale Exterieure $ 132,685 $ 160,961 0.0%
150,000 Wafa Bank 5,810,251 6,036,055 1.5
------------ ------------ ------
5,942,936 6,197,016 1.5
Building & Construction 163,154 Groupe Omnium Nord African 6,686,860 6,827,992 1.6
Building Materials 10,000 Les Ciments de l'Oriental 340,024 330,508 0.1
Total Investments in Morocco 12,969,820 13,355,516 3.2
South Beverage 45,000 South African Breweries Ltd. 950,625 731,250 0.2
Africa
Mining 245,000 De Beers Consolidated Mines Ltd. 5,809,096 5,053,125 1.2
Multi-Industry 800,000 Lonrho PLC 1,953,771 1,743,116 0.4
Total Investments in South Africa 8,713,492 7,527,491 1.8
Total Investments in Africa 21,683,312 20,883,007 5.0
EUROPE
Austria Banking 20,500 Creditanstalt--Bankverein AG 786,450 1,219,046 0.3
Building & Construction 4,000 Bau Holding AG 362,527 414,561 0.1
Oil 16,500 Unternehmensgruppe OMV AG 1,039,188 1,344,221 0.3
Textiles 18,000 Lenzing AG 916,404 2,065,837 0.5
Transportation 26,400 Jenbacher Transportsysteme AG 1,588,046 520,307 0.1
Utilities 12,500 Energie--Versorgung Niederosterreich
AG (EVN) 989,417 1,652,296 0.4
Total Investments in Austria 5,682,032 7,216,268 1.7
Czech Banking 13,500 Komercni Banka 2,034,490 1,747,870 0.4
Republic
Electrical Equipment 9,206 Podnik Vypocetni Techniky (PVT) 1,903,926 1,609,090 0.4
Food 43,000 Ceska General Food 4,520,734 4,393,597 1.1
Paper 51,707 SEPAP 2,578,200 2,492,859 0.6
Total Investments in the Czech Republic 11,037,350 10,243,416 2.5
France Energy 60,000 Coflexip (ADR)(b) 960,000 1,177,500 0.3
Total Investments in France 960,000 1,177,500 0.3
Greece Banking 13,150 Credit Bank S.A. 512,271 598,699 0.1
84,650 Ergo Bank (Registered) S.A. 3,038,469 3,699,136 0.9
------------ ------------ ------
3,550,740 4,297,835 1.0
Beverage 52,500 Hellenic Bottling Co. S.A. (Bearer) 818,772 1,645,427 0.4
Building & Construction 55,730 Michaniki S.A. 1,320,551 2,650,573 0.6
5,066 Michaniki S.A. (Preferred) 195,004 218,188 0.1
48,830 Titan Cement S.A. 1,960,315 1,489,712 0.3
------------ ------------ ------
3,475,870 4,358,473 1.0
Financial Services 45,130 Etva Leasing S.A. 1,640,708 1,375,915 0.3
<PAGE>
Food 63,504 Delta Dairy S.A. (Ordinary) 1,671,986 1,799,280 0.4
41,172 Delta Dairy S.A. (Preferred) 1,170,377 987,459 0.2
62,940 J. Boutari & Son S.A. (Bearer) 1,088,749 601,256 0.2
6,600 Katselis Sons S.A. 56,182 53,659 0.1
------------ ------------ ------
3,987,294 3,441,654 0.9
Total Investments in Greece 13,473,384 15,119,304 3.6
Hungary Food 31,500 Pick Szeged Reszvenytarsasag (GDS)(a) 1,247,102 2,279,025 0.6
Retail Stores 342,000 FOTEX RT--Fotex Elso Amerikai--Magyar
Fotoszolgaltatasi Reszvenytarsasag 1,221,168 1,735,930 0.4
Total Investments in Hungary 2,468,270 4,014,955 1.0
Italy Automotive 336,666 Fiat Group S.p.A. (Preferred)
(Warrants)(c) 107,058 481,101 0.1
13,218 La Rinascente S.p.A. 76,498 94,649 0.0
------------ ------------ ------
183,556 575,750 0.1
Total Investments in Italy 183,556 575,750 0.1
Poland Appliances & Household
Durables 89,000,000 Swarzedzkie Fabryki Mebli S.A. 2,097,881 1,679,928 0.4
Banking 27,000,000 Wielkopolski Bank Kredytowy 1,784,420 1,432,603 0.3
Electrical Equipment 15,000,000 Elektrim Towarzystwo Handlowe S.A. 1,916,544 1,280,199 0.3
Food 40,000 International Fast Food Corp. 267,500 250,000 0.1
Total Investments in Poland 6,066,345 4,642,730 1.1
Portugal Banking 115,100 Banco Comercial Portugues, S.A.
(ADR)(b) 1,621,317 1,798,437 0.4
352,212 Banco Comercial Portugues, S.A.
(Registered) 4,850,549 5,750,945 1.4
77,000 Banco Totta E Acores S.A. 1,657,285 1,735,085 0.4
------------ ------------ ------
8,129,151 9,284,467 2.2
<PAGE>
Beverage 29,100 Uniao Cervejaria S.A. (UNICER) 790,773 1,019,264 0.2
Building & Construction 72,600 Efacec S.A. 2,453,617 2,322,522 0.6
82,300 Soares da Costa S.A. 1,477,775 1,585,464 0.4
172,200 Sociedade de Empreitadas Somague S.A. 1,342,194 2,513,135 0.6
------------ ------------ ------
5,273,586 6,421,121 1.6
Leisure & Entertainment 27,850 Estoril--Sol S.A. 214,326 234,116 0.1
Paints 21,875 CIN--Corporacao Industrial do Norte S.A. 521,403 715,120 0.2
Retail 62,600 Jeronimo Martins S.A. 2,895,368 5,371,979 1.3
10,000 Sonae Investimentos S.A. 112,457 198,074 0.0
------------ ------------ ------
3,007,825 5,570,053 1.3
Total Investments in Portugal 17,937,064 23,244,141 5.6
Russia Telecommunications 39,450 Petersburg Long Distance Corp.
(ADR) (b) 301,256 399,431 0.1
Total Investments in Russia 301,256 399,431 0.1
Total Investments in Europe 58,109,257 66,633,495 16.0
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
LATIN Percent of
AMERICA Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Automobiles 267,956 Compania Interamericana de Automoviles
S.A. (CINA) $ 4,032,563 $ 3,885,751 0.9%
Banking 138,000 Banco de Galicia y Buenos Aires S.A. 1,408,096 1,650,342 0.4
252,148 Banco Frances del Rio de la Plata S.A. 1,426,567 2,559,558 0.6
------------ ------------ ------
2,834,663 4,209,900 1.0
Energy 1,551,800 Astra Compania Argentina de Petroleo
S.A. 3,240,628 3,414,301 0.8
<PAGE>
Telecommunications 200,000 Telecom Argentina Stet--France Telecom
S.A. 983,748 1,110,111 0.3
50,000 Telecom Argentina Stet--France Telecom
S.A. (ADR)(b) 3,065,372 2,775,000 0.7
34,472 Telefonica de Argentina S.A. (ADR)(b) 1,095,078 2,150,191 0.5
------------ ------------ ------
5,144,198 6,035,302 1.5
Total Investments in Argentina 15,252,052 17,545,254 4.2
Brazil Banking 319,666,834 Banco Bradesco S.A. 4,388,075 5,354,964 1.3
19,127,979 Banco Nacional S.A. 777,477 1,214,688 0.3
------------ ------------ ------
5,165,552 6,569,652 1.6
Beverage 5,644,200 Companhia Cervejaria Brahma PN
(Preferred) 1,094,100 1,328,643 0.3
574,872 Companhia Cervejaria Brahma S.A.
(Warrants)(c) 14,956 2,097 0.0
------------ ------------ ------
1,109,056 1,330,740 0.3
Electrical
Equipment 3,260,000 Light--Servicios de Eletricidade S.A. 1,170,478 1,177,875 0.3
Mining 29,037,000 Companhia Vale do Rio Doce PN (CVRD)
(Preferred) 2,704,603 3,401,755 0.8
Oil & Related 52,873,333 Petroleo Brasileiro S.A. 7,250,168 7,409,931 1.8
Steel 5,119,700,000 Usinas Siderurgicas de Minas Gerais--
Usiminas S.A. 2,949,169 5,773,634 1.4
Telecommunications 53,142,632 Telecomunicacoes Brasileiras S.A.--
Telebras ON 1,682,509 1,856,100 0.4
42,000 Telecomunicacoes Brasileiras S.A.--
Telebras ON (ADR)(b) 1,471,188 1,732,500 0.4
------------ ------------ ------
3,153,697 3,588,600 0.8
Utilities 24,942,400 Centrais Eletricas Brasileiras S.A.--
Eletrobras (Preferred) 4,306,820 7,154,957 1.7
Total Investments in Brazil 27,809,543 36,407,144 8.7
<PAGE>
Chile Apparel 7,458,443 Bata Chile S.A. 2,103,744 1,924,082 0.5
Utilities 17,000 Compania de Telefonos de Chile S.A. 2,037,586 1,517,250 0.4
Total Investments in Chile 4,141,330 3,441,332 0.9
Mexico Banking 380,500 Grupo Financiero Banamex Accival,
S.A. de C.V.--Banacci 3,682,726 2,585,812 0.6
Beverage 50,000 Fomento Economico Mexicano, S.A.
de C.V. (FEMSA)(ADR)(b) 195,000 254,375 0.0
447,500 Fomento Economico Mexicano, S.A.
de C.V. (FEMSA)(Ordinary) 1,780,336 2,363,547 0.6
------------ ------------ ------
1,975,336 2,617,922 0.6
Building &
Construction 26,500 Cementos Mexicanos, S.A. de C.V. (ADR)
(Class B)(b) 1,607,856 1,278,625 0.3
117,000 Cementos Mexicanos, S.A. de C.V.
(Series B) 2,952,927 2,838,689 0.7
12,500 Empresas ICA Sociedad Controladora,
S.A. de C.V. 222,625 300,000 0.1
373,000 Tolmex, S.A. de C.V. 'B' 999,729 4,702,802 1.1
------------ ------------ ------
5,783,137 9,120,116 2.2
Electrical 287,800 Grupo Empresarial Fenix, S.A.
de C.V. 'L' (ELEKTRA) 2,404,684 2,401,908 0.6
Financial Services 66,700 Grupo Financiero Bancomer, S.A. de C.V.
(ADR)(b) 2,224,175 2,034,350 0.5
168,250 Servicios Financieros Quadrum, S.A.
de C.V. (ADR)(b) 1,954,207 3,764,594 0.9
------------ ------------ ------
4,178,382 5,798,944 1.4
Food 1,600,000 Grupo Herdez, S.A. de C.V. 'A' 1,450,009 1,888,525 0.4
Health & Personal
Care 225,000 Kimberly-Clark de Mexico, S.A. de C.V. 3,291,367 3,990,313 1.0
<PAGE>
Leisure 825,700 Grupo Carso, S.A. de C.V. 'A' 6,725,536 7,727,863 1.8
80,000 Grupo Posadas, S.A. de C.V. (ADR)(b) 1,172,100 1,440,000 0.3
93,000 Grupo Situr, S.A. de C.V. (ADR)(b) 1,700,594 2,348,250 0.5
458,000 Grupo Situr, S.A. de C.V. 'B'
(Ordinary) 1,419,439 1,174,009 0.3
------------ ------------ ------
11,017,669 12,690,122 2.9
Metals 82,700 Grupo Simec, S.A. de C.V. (ADR)(b) 1,332,625 2,212,225 0.5
745,000 Grupo Simec, S.A. de C.V. (Ordinary) 670,192 1,110,283 0.3
------------ ------------ ------
2,002,817 3,322,508 0.8
Retail 2,375,000 Cifra, S.A. de C.V. 'C' 4,796,743 6,102,086 1.5
Utilities 295,250 Telefonos de Mexico, S.A. de C.V.
(ADR)(b) 17,719,870 17,788,812 4.3
Total Investments in Mexico 58,302,740 68,307,068 16.3
Peru Banking 326,145 Banco de Credito de Peru S.A. 311,134 920,898 0.2
Mining 277,002 Southern Peru Copper Corp. S.A. 820,382 867,625 0.2
Total Investments in Peru 1,131,516 1,788,523 0.4
Venezuela Building &
Construction 59,555 Corporacion Ceramica Carabobo CA--
S.A.C.A. (Class A) 170,883 119,079 0.0
79,777 Corporacion Ceramica Carabobo CA--
S.A.C.A. (Class B) 131,693 187,254 0.1
------------ ------------ ------
302,576 306,333 0.1
Building Materials 32,236 Venezolana de Cementos S.A.C.A.
(VENCEMOS) 42,076 67,258 0.0
Utilities 1,470,502 C.A. La Electricidad de Caracas
S.A.I.C.A.--S.A.C.A. 4,219,681 4,691,595 1.1
Total Investments in Venezuela 4,564,333 5,065,186 1.2
Total Investments in Latin America 111,201,514 132,554,507 31.7
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
MIDDLE Shares Held/ Percent of
EAST Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Israel Financial Services 633,600 Ampal-American Israel Corp. $ 7,841,524 $ 5,860,800 1.4%
543,600 Ampal-American Israel Corp.
(Warrants) (c) 0 611,550 0.1
------------ ------------ ------
7,841,524 6,472,350 1.5
Total Investments in Israel 7,841,524 6,472,350 1.5
Pakistan Banking 146,200 Bank of Punjab 500,391 508,614 0.1
Electrical Equipment 198,875 Karachi Electric Supply Corp. Ltd. 130,550 365,513 0.1
Total Investments in Pakistan 630,941 874,127 0.2
Total Investments in the Middle East 8,472,465 7,346,477 1.7
PACIFIC BASIN/
ASIA
Australia Media/Publishing 458,300 Nine Network Australia Ltd. 949,114 1,590,732 0.4
Merchandising 265,000 Amway Asia Pacific Ltd. 7,549,106 9,705,625 2.3
Paper & Pulp 438,800 Spicers Paper Ltd. 808,666 769,216 0.2
Total Investments in Australia 9,306,886 12,065,573 2.9
China Appliances & 676,000 Shenzhen China Bicycles 'B' Co.
Household Durables (Holdings) Ltd. 501,114 542,389 0.1
Total Investments in China 501,114 542,389 0.1
<PAGE>
Hong Kong Apparel 3,172,000 Top Form International Ltd. 909,258 558,270 0.1
Automotive 1,744,000 Sime Darby (Hong Kong) Ltd. 2,993,417 2,753,458 0.7
Banking 186,000 Hong Kong & Shanghai Banking Corp.
Holdings PLC 2,012,703 2,094,134 0.5
Electrical Equipment 358,000 Johnson Electric Holdings Ltd. 897,892 875,623 0.2
Financial Services 11,005,000 Winton Holdings Ltd. 3,849,116 3,311,199 0.8
Food 9,039,000 C.P. Pokphand Co. Ltd. (Ordinary) 2,895,870 2,631,935 0.6
Publishing &
Broadcasting 1,772,000 Ming Pao Enterprise Corp. Ltd. 870,697 1,226,845 0.3
Real Estate 460,000 Cheung Kong Holdings Ltd. 775,308 1,101,290 0.3
1,725,000 Hang Lung Development Co. Ltd.
(Warrants)(c) 2,040,469 859,453 0.2
2,616,984 Hong Kong Resorts International Ltd. 3,065,333 2,726,272 0.6
3,384,000 Sino Land Co., Ltd. 4,628,500 3,656,698 0.9
1,250,000 Sino Land Co., Ltd. (1995 Warrants)(c) 1,516,679 905,879 0.2
5,894,000 Sun Hung Kai Properties Ltd. 3,575,674 3,146,345 0.8
------------ ------------ ------
15,601,963 12,395,937 3.0
Textiles 7,740,000 United Success International Holdings
Ltd. 1,029,241 921,512 0.2
Total Investments in Hong Kong 31,060,157 26,768,913 6.4
India Aluminum 60,000 Hindalco Industries Ltd. (GDS)(a) 831,833 1,395,000 0.3
26,500 Hindalco Industries Ltd. (Ordinary) 496,362 620,945 0.1
30,000 Hindalco Industries Ltd. (Warrants)(c) 134,167 240,000 0.1
------------ ------------ ------
1,462,362 2,255,945 0.5
Building &
Construction 31,250 The Associated Cement Co. Ltd. 2,499,847 3,113,294 0.8
Business & Public
Services 65,000 Western Paques (India) Ltd. 233,861 481,788 0.1
Chemicals 360,500 Mardia Chemicals Ltd. 1,551,650 2,011,238 0.5
<PAGE>
Energy $ 140,000 Bombay Suburban Electric Supply Co. Ltd.,
Convertible Debentures, 15.00% due
3/01/1995 267,793 267,793 0.1
482,000 Bombay Suburban Electric Supply Co. Ltd. 3,020,772 3,457,400 0.8
------------ ------------ ------
3,288,565 3,725,193 0.9
Publishing &
Broadcasting 110,000 Videocon International Ltd. 990,000 935,000 0.2
Total Investments in India 10,026,285 12,522,458 3.0
Indonesia Tobacco 420,000 P.T. Gudang Garam 2,010,276 2,008,357 0.5
936,000 P.T. Hanjaya Mandala Sampoerna 1,604,227 6,691,922 1.6
------------ ------------ ------
3,614,503 8,700,279 2.1
Total Investments in Indonesia 3,614,503 8,700,279 2.1
Korea Automotive 27,026 Dong Ah Tire Industries 1,248,434 1,547,022 0.4
Banking 330,000 Bank of Seoul 3,820,202 3,557,180 0.9
Financial Services 69,050 Hanyang Securities Corp. 1,619,850 1,300,409 0.3
Food 9,460 Lotte Confectionery Corp. 587,944 1,012,106 0.2
Pharmaceuticals 32,652 Choong Wae Pharmaceutical Corp. 962,822 1,665,167 0.4
Retail Stores 12,132 Shinsegae Department Store 390,439 946,990 0.2
Telecommunications 6,817 Korea Mobile Telecommunications Corp. 1,328,813 2,882,296 0.7
Utilities 41,470 Korea Electric Power Corp. 1,094,396 1,356,471 0.3
Total Investments in Korea 11,052,900 14,267,641 3.4
<PAGE>
Malaysia Building &
Construction 561,000 IJM Corp. BHD 2,018,065 1,788,423 0.4
Construction & Housing 610,666 Golden Plus Holdings BHD 2,231,882 1,582,449 0.4
Financial Services 1,053,333 Commerce Asset-Holdings BHD 2,206,151 3,318,667 0.8
493,000 Idris Hydraulic BHD 1,512,666 946,663 0.2
1,653,000 Public Bank BHD "Foreign" 1,642,679 2,784,888 0.7
------------ ------------ ------
5,361,496 7,050,218 1.7
Real Estate 1,219,000 Tan & Tan Developments BHD 2,003,691 1,327,174 0.3
Steel 1,251,000 Maruichi (Malaysia) Steel Tube BHD 2,501,235 2,705,369 0.7
Telecommunications 228,000 Leader Universal Holdings BHD 339,992 1,003,132 0.2
Total Investments in Malaysia 14,456,361 15,456,765 3.7
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
PACIFIC
BASIN/ASIA Shares Held/ Percent of
(concluded)Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
New Beverage 1,000,000 D.B. Group Ltd. $ 384,967 $ 454,653 0.1%
Zealand
Transportation 800,100 Ports of Auckland Ltd. 989,279 920,647 0.2
Total Investments in New Zealand 1,374,246 1,375,300 0.3
Phil- Beverage 108,000 San Miguel Corp. 'B' 501,254 875,036 0.2
ippines
Electric Utilities 29,786 Manila Electric Co. (MERALCO) 'B' 165,929 510,928 0.1
Total Investments in the Philippines 667,183 1,385,964 0.3
Singapore Banking 1,029,000 United Overseas Bank Ltd. (Warrants) (c) 1,988,883 3,775,846 0.9
Building &
Construction 1,475,000 Parkway Holdings Ltd. 2,031,451 2,842,693 0.7
Total Investments in Singapore 4,020,334 6,618,539 1.6
<PAGE>
Sri Lanka Building & 262,500 Lankan Tiles 337,398 443,526 0.1
Construction
Diversified 62,500 Aitken Spence 413,990 640,008 0.2
Total Investments in Sri Lanka 751,388 1,083,534 0.3
Thailand Banking 317,900 Bangkok Bank Ltd. "Foreign" 1,546,650 2,243,703 0.5
Financial Services $ 2,750,000 Finance One PLC, 5.75% due 6/17/2003 3,388,750 5,170,000 1.3
Insurance 159,000 Ayudhya Insurance Co. "Foreign" 1,187,126 2,080,492 0.5
Telecommunications 14,300 United Communication Industry Public
Co. Ltd. 130,577 330,000 0.1
Total Investments in Thailand 6,253,103 9,824,195 2.4
Turkey Banking 5,098,000 Yapi Kredi Bankasi A.S. 1,914,651 431,769 0.1
Beverages 502,400 Ege Biracilik Ve Malt Sanayii A.S. 472,057 1,025,306 0.3
Food 768,000 Tat Konservecili A.S. 1,035,875 1,394,939 0.3
Multi-Industry 766,000 Dogan Sirketler Grubu Holding A.S. 927,803 750,367 0.2
Retail 101,400 Migros Turk A.S. 350,626 869,143 0.2
Steel 12,500,000 Izmir Demir Celik Sanayii A.S. 948,829 931,122 0.2
Total Investments in Turkey 5,649,841 5,402,646 1.3
Total Investments in the Pacific
Basin/Asia 98,734,301 116,014,196 27.8
<PAGE>
<CAPTION>
SHORT-TERM
SECURITIES
Percent of
Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Commercial Paper* $ 8,000,000 Bank One Diversified Services Corp.,
States 3.63% due 5/16/1994 $ 7,963,700 $ 7,963,700 1.9%
3,000,000 Ciesco L.P., 3.55% due 4/13/1994 2,996,450 2,996,450 0.7
8,000,000 Corporate Asset Funding Corp., 3.59%
due 5/16/1994 7,964,100 7,964,100 1.9
2,000,000 First Boston Income Fund, Inc., 3.58%
due 4/25/1994 1,995,227 1,995,227 0.5
1,872,000 General Electric Capital Corp., 3.53%
due 4/04/1994 1,871,449 1,871,449 0.4
4,000,000 Hertz Funding Corp., 3.53% due 4/22/1994 3,991,763 3,991,763 0.9
Matterhorn Capital Corp.:
10,000,000 3.50% due 4/05/1994 9,996,111 9,996,111 2.4
2,000,000 3.52% due 4/20/1994 1,996,284 1,996,284 0.5
5,000,000 Pfizer Inc., 3.52% due 4/05/1994 4,998,044 4,998,044 1.2
8,000,000 Pitney Bowes Inc., 3.50% due 4/14/1994 7,989,889 7,989,889 1.9
Sheffield Receivables Corp.:
7,000,000 3.40% due 4/04/1994 6,998,017 6,998,017 1.7
2,000,000 3.50% due 4/08/1994 1,998,639 1,998,639 0.5
8,000,000 Student Loan Marketing Association,
3.64% due 5/09/1994 7,969,262 7,969,262 1.9
Total Investments in Short-Term
Securities 68,728,935 68,728,935 16.4
Total Investments $366,929,784 412,160,617 98.6
============
Other Assets Less Liabilities 5,651,433 1.4
------------ ------
Net Assets (Equivalent to $15.83 per share based on 26,394,623
shares of capital outstanding) $417,812,050 100.0%
============ ======
<FN>
(a)Global Depositary Shares (GDS).
(b)American Depositary Receipt (ADR).
(c)Warrants entitle the Fund to purchase a predetermined number of
shares of Common Stock. The purchase price and number of shares
are subject to adjustment of certain conditions until the ex-
piration date.
*Commercial Paper is traded on a discount basis; the interest
rates shown are the discount rates paid at the time of
purchase by the Fund.
</TABLE>
<PAGE>
PORTFOLIO CHANGES
For the Quarter Ended March 31, 1994
Additions
Ampal-American Israel Corp.
Ampal-American Israel Corp. (Warrants)
Bank of Seoul
Banque Marocaine Commerciale Exterieure
Bombay Suburban Electric Supply Co. Ltd.,
Convertible Debentures, 15.00%
due 3/01/1995
*Casa Anglo PN
Cementos Mexicanos, S.A. de C.V. (ADR)
(Class B)
Ceska General Food
Compagnie de Saint Gobain (Rights)
*Companhia Energelica de Minas Gerais S.A.
(CEMIG) PN
Compania de Telefonos de Chile S.A.
*Coteminas PN
Credit Bank S.A. (Rights)
De Beers Consolidated Mines Ltd.
*Delta Dairy S.A. (Preferred) (Rights)
Dogan Sirketler Grubu Holding A.S.
Elektrim Towarzystwo Handlowe S.A.
Etva Leasing S.A.
Groupe Omnium Nord Africain
Grupo Financiero Banamex Accival,
S.A. de C.V. (Banacci)--Class C
Grupo Situr, S.A. de C.V. 'B' (Ordinary)
Hang Lung Development Company, Ltd.
(Warrants)
Hanyang Securities Corp.
Hong Kong Resorts International Ltd.
Izmir Demir Celik Sanayii A.S.
<PAGE>
Komercni Banka
Les Ciments de l'Oriental
Light Servicios de Eletricidade S.A.
Lonrho PLC
Mardia Chemicals Ltd.
*Michaniki (Rights)
Petroleo Brasileiro S.A.
Podnik Vypocetni Techniky (PVT)
Ports of Auckland Ltd.
SEPAP
*Sheen Wharf Development (Warrants)
Sino Land Co., Ltd.
Sino Land Co., Ltd. (1995 Warrants)
Sociedade de Empreitadas Somague S.A.
South African Breweries Ltd.
Swarzedzkic Fabryki Mebli S.A.
Tat Konservecili A.S.
Videocon International Ltd.
Wafa Bank
Wielkopolski Bank Kredytowy
Deletions
ABC Communications Holdings, Ltd.
Acos Industria Villares S.A.
Banco Itau S.A.
Canal Plus
*Casa Anglo PN
Chargeurs S.A.
Commerce Asset--Holdings BHD (TSRs)
Compagnie de Saint Gobain
*Companhia Energelica de Minas Gerais S.A.
(CEMIG) PN
Companhia Siderurgica Nacional
S.A.--CSN
*Coteminas PN
Credit Commercial de France (CCF)
*Delta Dairy S.A. (Preferred) (Rights)
El Puerto de Liverpool S.A. de C.V. 'C'
(Non-Voting)
Empresas Pizarreno S.A.
Fiat Group S.p.A. (Preferred)
Fountain Set Holdings Ltd.
Grasim Industries Ltd. (ADR)
Hong Kong and China Gas Co. (The)
<PAGE>
Hopewell Holdings Ltd.
Hopewell Holdings Smart (Warrants)
Independent Newspapers Ltd.
International Cosmetics Co. Ltd. "Foreign"
J.C.G. Holdings, Ltd.
Linkful International Holdings, Ltd.
Lojas Americanas S.A.
M.D.X. Co. Ltd. "Foreign"
*Michaniki (Rights)
NTS Steel Groups Co. Ltd., 4.00% due
12/16/2000
Sadia Concordia S.A. Industria e
Comercio PN (Preferred)
*Sheen Wharf Development (Warrants)
Shinsegae Department Store (New)
Sino Land Co., Ltd., 5.00% due 10/21/2000
South Seas Development Co., Ltd.
TelecomAsia Corp. Public Co. Ltd.
Telecomunicacoes Brasileiras S.A.--
Telebras PN (Preferred)
Unipol Compagnie Assicuratice S.p.A.
(Preferred)
Uralita Group S.A.
[FN]
*Added and deleted in the same quarter.
PORTFOLIO INFORMATION
Ten Largest Equity Holdings Percent of
As of March 31, 1994 Net Assets
Telefonos de Mexico, S.A. de C.V. (ADR) 4.3%
Amway Asia Pacific Ltd. 2.3
Grupo Carso, S.A. de C.V. 'A' 1.8
Petroleo Brasileiro S.A. 1.8
Centrais Eletricas Brasileiras S.A.--Eletrobras
(Preferred) 1.7
Groupe Omnium Nord Africain 1.6
P.T. Hanjaya Mandala Sampoerna 1.6
Cifra, S.A. de C.V. 'C' 1.5
Wafa Bank 1.5
Ampal-American Israel Corp.* 1.5
[FN]
*Includes warrants.
<PAGE>
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Donald C. Burke, Vice President
Grace Pineda, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
Chase Metro Tech Center
Brooklyn, New York 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
APPENDIX: GRAPHIC AND IMAGE MATERIAL
Item 1:
Asset Allocation as a Percentage* of Net Assets as of March 31,
1994
<PAGE>
A map illustrating the following percentages:
Peru 0.4
Venezuela 1.2
Brazil 8.7
Portugal 5.6
Hungary 1.0
Austria 1.7
Poland 1.1
Czech Republic 2.5
Greece 3.6
Chile 0.9
Morocco 3.2
Italy 0.1
Israel 1.5
Malaysia 3.7
Hong Kong 6.4
Australia 2.9
Russia 0.1
Turkey 1.3
Pakistan 0.2
India 3.0
Thailand 2.4
Singapore 1.6
China 0.1
Korea 3.4
Mexico 16.3
Argentina 4.2
France 0.3
South Africa 1.8
Sri Lanka 0.3
Indonesia 2.1
Philippines 0.3
New Zealand 0.3
[FN]
*May not equal 100%.
