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Previous: SEARS CREDIT ACCOUNT TRUST 1991-C, 424B3, 1994-10-17 |
Next: MERRILL LYNCH LATIN AMERICA FUND INC, 485BPOS, 1994-10-17 |
MERRILL
LYNCH
LATIN
AMERICA
FUND, INC.
FUND LOGO
Quarterly Report August 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.
<PAGE>
This report is not authorized for use as an offer of sale
or a 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. Investment 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
Latin America Fund, Inc.
Box 9011
Princeton, NJ 08543-9011
MERRILL LYNCH LATIN AMERICA FUND, INC.
Asset Allocation
As a Percentage* of
Net Assets as of
August 31, 1994
IMAGE MATERIAL APPEAR HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 1.
DEAR SHAREHOLDER
Indications of improving economic
fundamentals, positive political devel-
opments, good corporate performance,
and the worldwide market corrections
in the early part of the year set the
stage for a strong rally in the main Latin
American markets in which we invest.
During the August quarter, the Fund's
total returns were +13.22% for Class A
Shares and +13.01% for Class B Shares.
Total return for the unmanaged Morgan
Stanley Latin America Free Index during
the quarter ended August 31, 1994 was
+19.13%. (Complete performance
information, including average annual
total returns, can be found on page 3
and 4 of this report to shareholders.)
<PAGE>
Investment Activities
For the three-month period ended
August 31, 1994, the Fund's largest
country allocation was Mexico with
44.2% of net assets. A new president,
Ernesto Zedillo, was elected in what
may be the most important election in
Mexico's history. Capturing more than
50% of the votes in a three-way election,
Zedillo's mandate is to further the
political democratization process
underway in Mexico and to continue
the responsible fiscal and monetary
policies of the outgoing Salinas admin-
istration. With inflation targets being
successfully achieved, we expect a
somewhat more growth-oriented bias in
the Zedillo administration. Therefore,
interest rates are likely to decline
further, the peso may be allowed to
depreciate faster, and government
spending on low income housing, edu-
cation and infrastructure will increase.
Of course, investments related to the
North American Free Trade Agreement
will also support economic growth.
Mexico's economic growth of close to 4%
in the second quarter of 1994 was very
strong. One of the main drivers of this
growth was construction. Grupo Tribasa,
S.A. de C.V., a leading Mexican construc-
tion and engineering firm, is one of
our investments and currently is the
Fund's fifth largest holding. Grupo
Tribasa has a healthy backlog of projects
and is likely to benefit from increased
government investments in water
treatment and urban railway projects.
Brazil introduced a new economic plan
based on its new currency, the real,
which is linked to the US dollar. A major
objective of the plan is to tackle the
country's persistent inflation problem.
So far, the plan seems to be effective
in breaking inflation's inertia and,
accompanied by tight monetary and
fiscal policy, it appears to be curbing
demand-driven inflation as well. (Pre-
liminary indications are that inflation
is now running 5%--6% per month versus
50% per month before initiation of the
new economic plan.) If successful,
the plan would ensure the election
in October of the plan's proponent,
Fernando Henrique Cardoso, to Brazil's
presidency. The expectation is that
Mr. Cardoso's success in achieving the
first objective will enable him to imple-
ment the more difficult and lasting
structural reforms that would address
Brazil's fiscal shortfall.
<PAGE>
The risk in the Brazilian stock market is
that the plan's continuing success (and
therefore, Cardoso's victory) is already
reflected in share prices, which have
risen more than 80% this year in US
dollar terms. In this environment,
value-oriented stock selection is crucial.
We prefer companies like Clark Automo-
tive Products Corporation S.A. (CAPCO), a
supplier of automotive transmissions for
original equipment manufacturers.
CAPCO American Depositary Receipts are
listed in the United States, but all of its
production activities and 75% of its sales
are in Brazil. CAPCO has a sizable
manufacturing base and an excellent
record for quality and successful product
development. The company recently
signed a letter of interest to supply
transmissions for the Corsa, GM's new
economy model automobile, which will
be produced in Brazil.
Although the Fund's investments in
Mexico and Brazil are substantial, other
markets are growing in importance for
the portfolio. For example, we recently
bought shares in La Cemento Nacional
C.A., an Ecuadorian cement company
controlled and managed by Holderbank
Financiere Glarus Ltd., the world's
largest cement company. La Cemento
Nacional is one of the most efficient
cement producers in Latin America
and accounts for about two-thirds of
Ecuadorian cement production.
We plan to increase investments broadly
throughout the region, but will empha-
size the smaller markets and specific
value stocks in the larger markets.
<PAGE>
In Conclusion
We appreciate your ongoing interest in
Merrill Lynch Latin America Fund, Inc.,
and we look forward to assisting you
with your financial needs and objectives
in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Grace Pineda)
Grace Pineda
Vice President and Portfolio Manager
September 27, 1994
PERFORMANCE DATA
None of the past results shown should be considered a representation
of future performance. Investment return and principal value
of Class A and Class B Shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
9/27/91-12/31/91 $10.00 $10.31 -- $0.125 + 4.40%
1992 10.31 10.19 -- 0.326 + 2.15
1993 10.19 16.62 -- 0.108 +64.27
1/1/94-8/31/94 16.62 17.99 -- -- + 8.24
------
Total $0.559
Cumulative total return as of 8/31/94: +89.63%**
<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
was included.
</TABLE>
<PAGE>
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
9/27/91-12/31/91 $10.00 $10.32 -- $0.098 + 4.22%
1992 10.32 10.22 -- 0.227 + 1.34
1993 10.22 16.61 -- 0.048 +63.05
1/1/94-8/31/94 16.61 17.89 -- -- + 7.71
------
Total $0.373
Cumulative total return as of 8/31/94: +85.47%**
<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 reflect deduction of any sales charge; results would be lower
if sales charge was deducted.
</TABLE>
<TABLE>
Average Annual
Total Return
<CAPTION>
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
<S> <C> <C>
Year Ended 6/30/94 +33.39% +24.72%
Inception (9/27/91) through 6/30/94 +17.43 +14.61
<FN>
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
<CAPTION>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
<S> <C> <C>
Year Ended 6/30/94 +32.35% +28.35%
Inception (9/27/91) through 6/30/94 +16.53 +15.97
<PAGE>
<FN>
*Maximum contingent deferred sales charge is 4% and is reduced to 0% after
4 years.
**Assuming payment of applicable contingent deferred sales charge.
</TABLE>
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
8/31/94 5/31/94 8/31/93 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares* $17.99 $15.89 $12.37 +45.43% +13.22%
Class B Shares* 17.89 15.83 12.34 +44.98 +13.01
Class A Shares--Total Return* +46.48 +13.22
Class B Shares--Total Return* +45.44 +13.01
<FN>
*Investment results shown do not reflect any sales charges; results would be lower
if a sales charge was included.
(1)Percent change includes reinvestment of $0.108 per share ordinary income dividends.
(2)Percent change includes reinvestment of $0.048 per share ordinary income dividends.
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Held/ Value Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Automobiles 852,802 Compania Interamericana de Automoviles
S.A. $ 11,378,782 $ 12,455,892 1.1%
Banking 51,826 Banco de Galicia y Bueonos Aires S.A.
(ADR)(2) 3,250,066 4,191,940 0.4
51,750 Banco de Galicia y Buenos Aires S.A.
(Preferred) (ADR) (2) 1,049,513 1,656,000 0.1
185,000 Banco del Sud S.A. 3,224,461 3,053,721 0.3
658,180 Banco Frances del Rio de la Plata S.A. 3,854,286 7,012,422 0.6
-------------- -------------- ------
11,378,326 15,914,083 1.4
<PAGE>
Beverages 1,746 Buenos Aires Embotelladora S.A. (BAESA) 1,759,894 3,353,661 0.3
91,000 Buenos Aires Embotelladora S.A. (BAESA)
(ADR) (2) 2,575,194 3,480,750 0.3
-------------- -------------- ------
4,335,088 6,834,411 0.6
Food 231,860 Quilmes Industrial S.A. 2,433,587 5,274,815 0.5
Oil & Related 4,360,888 Astra Compania Argentina de Petroleo S.A. 10,057,054 9,554,166 0.8
1,968,621 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 11,151,188 11,127,160 1.0
205,000 Yacimientos Petroliferos Fiscales S.A.
(Sponsored) (ADR) (2) 5,120,874 5,304,375 0.5
-------------- -------------- ------
26,329,116 25,985,701 2.3
Real Estate 1,203,565 Inversiones y Representaciones S.A.
(IRSA) 3,138,864 4,358,649 0.4
Tobacco 49,980 Massalin Particulares S.A. 508,374 700,000 0.1
Utilities 9,500 Central Costanera S.A. (Class B) 228,000 356,250 0.0
866,000 Telecom Argentina Stet--France Telecom
S.A. 5,307,028 6,324,330 0.6
270,580 Telecom Argentina Stet--France Telecom
S.A. (ADR) (2) 15,682,783 19,414,115 1.7
525,000 Telefonica de Argentina S.A. 3,009,246 3,823,529 0.3
70,276 Telefonica de Argentina S.A. (ADR) (2) 2,132,935 5,121,364 0.5
606,000 Transportadora de Gas del Sur S.A.
(ADR) (2) 8,161,944 8,256,750 0.7
-------------- -------------- ------
34,521,936 43,296,338 3.8
Total Long-Term Investments in Argentina 94,024,073 114,819,889 10.2
Brazil Appliances & 13,980,500 Brasmotor Group S.A. (Preferred) 1,730,444 5,470,973 0.5
Household Durables 1,016,000 Multibras S.A. (Preferred) 527,444 1,498,829 0.1
-------------- -------------- ------
2,257,888 6,969,802 0.6
Automotive 802,300 Clark Automotive Products Corporation S.A.
(CAPCO) (ADR) 9,471,369 10,931,338 1.0
202,000 Companhia Siderurgica de Tubarao S.A.
(CST) 5,789,563 6,565,000 0.6
-------------- -------------- ------
15,260,932 17,496,338 1.6
Banking 1,950,833,276 Banco Bradesco S.A. 15,097,638 19,112,893 1.7
15,500,400 Banco Itau S.A. (Preferred) 2,460,710 4,765,326 0.4
380,329,908 Banco Nacional S.A. PN 10,068,684 12,039,497 1.1
17,237,154 Uniao de Bancos Brasileiros S.A.
(UNIBANCO) 397,694 563,119 0.0
-------------- -------------- ------
28,024,726 36,480,835 3.2
<PAGE>
Beverages 18,467,072 Companhia Cervejaria Brahma S.A.
(Preferred) 3,657,137 5,656,581 0.5
1,880,905 Companhia Cervejaria Brahma S.A.
(Warrants) (a) 48,935 2,566 0.0
-------------- -------------- ------
3,706,072 5,659,147 0.5
Building & 547,000 Companhia Cimento Portland Itau S.A. PN 134,354 203,277 0.0
Construction
Electrical & 675,841 Companhia Energetica de Sao Paulo S.A.
Electronics (CESP) 416,613 1,156,845 0.1
30,028,000 Light-Servicios de Electricidade S.A. 9,998,925 10,922,009 1.0
-------------- -------------- ------
10,415,538 12,078,854 1.1
Food 12,275,410 Sadia Concordia S.A. Industria e Comercio
(Preferred) 10,627,282 16,865,142 1.5
Machinery 8,709,000 Iochpe-Maxion S.A. (Ordinary) 3,583,312 3,726,824 0.3
33,699,765 Iochpe-Maxion S.A. (Preferred) 13,685,869 19,164,844 1.7
-------------- -------------- ------
17,269,181 22,891,668 2.0
Mining 97,936,800 Companhia Vale do Rio Doce S.A. 10,282,118 15,219,908 1.3
Oil & Related 186,420,000 Petroleo Brasileiro S.A. 24,924,801 32,959,392 2.9
Paper 364,851 Aracruz Celulose S.A. (Preferred) 647,358 978,277 0.1
Retail 2,910,880 Casa Anglo Brasileira S.A. 720,608 688,384 0.1
118,564,600 Lojas Americanas S.A. 2,125,943 3,177,745 0.3
13,896,600 Mesbla S.A. 3,127,325 3,020,320 0.3
-------------- -------------- ------
5,973,876 6,886,449 0.7
Steel 3,192,700 Acos Industria Villares S.A. 714,377 852,106 0.1
272,560,000 Companhia Metalurgica Barbara S.A. 267,267 288,521 0.0
111,018,000 Companhia Siderurgica Nacional S.A.--CSN 3,016,081 4,313,199 0.4
12,844,682,013 Usinas Siderurgicas de Minas Gerais--
Usiminas S.A. (Preferred) 7,655,752 20,250,630 1.8
-------------- -------------- ------
11,653,477 25,704,456 2.3
Telecommunications 37,000 Telecomunicacoes Brasileiras S.A.--
Telebras (ADR) (2) 1,267,125 2,164,500 0.2
45,827,897 Telecomunicacoes Brasileiras S.A.--
Telebras (Ordinary) 1,515,919 2,115,928 0.2
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Held/ Value Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Brazil Telecommunications 328,934,366 Telecomunicacoes Brasileiras S.A.--
(concluded)(concluded) Telebras (Preferred) $ 14,005,074 $ 19,373,049 1.7%
60,723,102 Telecomunicacoes de Minejeros S.A.--
TELEMIG (Ordinary) 2,682,475 2,599,195 0.2
44,208,310 Telecomunicacoes de Sao Paulo S.A.--
TELESSP (Preferred) 14,596,049 22,402,362 2.0
4,430,936 Telecomunicacoes Parana S.A.--TELEPAR
(Preferred) 754,996 1,496,938 0.1
-------------- -------------- ------
34,821,638 50,151,972 4.4
Textiles 873,000 Brasperola Industria e Comercio S.A. 931,692 1,327,196 0.1
3,697,363 Companhia de Tecidos Norte de Minas S.A. 895,127 1,394,797 0.1
-------------- -------------- ------
1,826,819 2,721,993 0.2
Transportation 165,000 Marcopolo S.A. Carrocerias E Onibus 'B'
(Preferred) 25,066 37,905 0.0
Utilities 26,910,700 Centrais Eletricas Brasileiras S.A.--
Electrobras 'B' (Preferred) 6,721,678 11,334,011 1.0
4,387,500 Centrais Eletricas da Santa Catarina S.A.
(CELESC) 764,541 4,125,633 0.4
34,321,009 Companhia Energetica de Minas Gerais S.A.
(CEMIG) 1,625,256 3,942,278 0.3
30,000 Companhia Energetica de Minas Gerais S.A.
(CEMIG) (ADR) (2) 638,750 892,500 0.1
203,820,000 Companhia Paulista de Forca e Luz S.A. 11,896,752 14,747,112 1.3
-------------- -------------- ------
21,646,977 35,041,534 3.1
Total Long-Term Investments in Brazil 199,498,103 288,346,949 25.5
<PAGE>
Chile Apparel 1,206,231 Bata Chile S.A. 340,424 311,658 0.0
Banking 202,900 Banco O'Higgins S.A. (ADR) (2) 3,101,779 4,159,450 0.4
Beverages 35,891 Embotelladora Andina S.A. 134,130 147,685 0.0
2,704,625 Vina Concha y Toro S.A. 1,176,792 925,266 0.1
-------------- -------------- ------
1,310,922 1,072,951 0.1
Building & 338,225 Empresas Pizarreno S.A. 644,310 542,131 0.0
Construction 102,100 Maderas y Sinteticos S.A. (MASISA)
(Foreign) (ADR) (2) 1,911,656 2,501,450 0.2
128,445 Maderas y Sinteticos S.A. (MASISA)
(Ordinary) 57,151 105,091 0.0
-------------- -------------- ------
2,613,117 3,148,672 0.2
Chemicals 341,000 Sociedad Quimica y Minera de Chile S.A.
(ADR) (2) 10,825,726 9,505,375 0.8
Closed-End Funds 67,984 The Chile Fund, Inc. 1,993,436 3,195,248 0.3
Food & Household 37,500 Cristalerias de Chile S.A. (ADR) (2) 895,312 675,000 0.1
Products
Pharmaceutical 2,838,804 Laboratorio Chile S.A. (LABCHILE) 2,115,737 2,343,032 0.2
1,261,887 Laboratorio Chile S.A. (LABCHILE)
(Rights) (b) 0 453 0.0
-------------- -------------- ------
2,115,737 2,343,485 0.2
Retail Sales 400,000 Santa Isabel S.A. 281,952 258,373 0.0
Steel 509,056 Compania de Acero del Pacifico S.A. de
Inv. (CAP) 2,879,914 3,288,161 0.3
Telecommunications 213,118 Empresa Nacional de Telecomunicaciones
S.A. (Entel) 1,449,275 2,763,396 0.2
Utilities 213,325 Compania de Telefonos de Chile S.A.
(ADR) (2) 24,485,793 19,465,906 1.7
5,670,011 Empresa Nacional de Electricidad S.A.--
ENDESA 2,358,605 4,363,738 0.4
34,000 Enersis S.A. (ADR) (2) 618,250 828,750 0.1
-------------- -------------- ------
27,462,648 24,658,394 2.2
Total Long-Term Investments in Chile 55,270,242 55,380,163 4.8
<PAGE>
Colombia Banking 402,160 Banco de Bogota S.A. 1,449,888 2,365,125 0.2
10,995,000,000 Banco de Colombia S.A. 1,033,874 687,034 0.1
US$ 9,000,000 Banco de Colombia S.A., 5.20%
due 2/01/1999 11,347,500 9,630,000 0.8
-------------- -------------- ------
13,831,262 12,682,159 1.1
Beverages & 587,154 La Compania Cervecera Bavaria S.A. 3,401,356 2,622,575 0.2
Tobacco
Building Products 177,500 Cementos Diamante S.A. 2,722,850 3,505,625 0.3
Insurance 231,200 Carulla S.A. (ADR) (2) 2,619,496 2,976,700 0.3
Retail 1,428,814 Gran Cadena de Almacenes Colombianos S.A.
(CADENALCO) 4,043,019 3,151,100 0.3
Tobacco 69,200 La Compania Colombiano de Tabaco S.A.
(COLTABACO) 356,988 288,270 0.0
Total Long-Term Investments in Colombia 26,974,971 25,226,429 2.2
Ecuador Building Products 40,000 La Cemento Nacional C.A. 7,915,328 11,200,000 1.0
Total Long-Term Investments in Ecuador 7,915,328 11,200,000 1.0
Mexico Banking 950,000 Banpais, S.A. de C.V. (ADR) (2) 9,500,000 8,550,000 0.8
US$ 10,000,000 Bonos de la Tesoreria de la Federacion,
7.77% due 8/10/1995 9,287,467 9,309,700 0.8
144,800 Grupo Financiero Bancomer, S.A. de C.V.
(ADR) (2) 4,418,248 3,873,400 0.3
350,000 Grupo Financiero Bancomer, S.A. de C.V.
'B' (Ordinary) 547,559 374,298 0.0
US$ 8,500,000 Grupo Financiero InverMexico, S.A. de
C.V., 7.50% due 6/16/2001 8,500,000 8,160,000 0.7
758,080 Grupo Financiero Probursa, S.A. de C.V.
'C' 806,262 642,744 0.1
598,900 Servicios Financieros Quadrum, S.A. de
C.V. (ADR) (2) 10,631,217 11,453,963 1.0
-------------- -------------- ------
43,690,753 42,364,105 3.7
Beverages & 25,600 Coca-Cola Femsa S.A. de C.V. (ADR) (2) 543,499 892,800 0.1
Tobacco 449,000 Fomento Economico Mexicano, S.A. de C.V.
(Femsa) (ADR) (2) 2,483,860 2,418,988 0.2
683,500 Fomento Economico Mexicano, S.A. de C.V.
(Femsa) (Ordinary) 2,530,446 3,755,716 0.3
268,250 Grupo Embotellador de Mexico, S.A. de
C.V. (GGEMEX) (ADR) (2) 5,473,776 7,544,531 0.7
180,000 Grupo Embotellador de Mexico, S.A. de
C.V. (GGEMEX) (Ordinary) 3,310,000 2,552,437 0.2
-------------- -------------- ------
14,341,581 17,164,472 1.5
Broadcasting & 1,050,000 Grupo Fernandez Editores, S.A. de C.V. 1,242,322 1,581,979 0.1
Publishing
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Held/ Value Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Mexico Building & 952,000 Apasco, S.A. de C.V. 'A' $ 3,981,144 $ 9,323,131 0.8%
(concluded)Construction 67,500 Bufete Industrial, S.A. de C.V.
(ADR) (2) 1,552,500 2,936,250 0.3
162,000 Cementos Mexicanos, S.A. de C.V. (Class B)
(Cemex) (ADR) (2) 2,912,366 2,916,000 0.3
2,618,999 Cementos Mexicanos, S.A. de C.V. Nom 'B'
(Cemex) 20,270,004 23,636,756 2.1
1,918,500 Grupo Financiero Banamex-Accival, S.A.
de C.V. 18,565,861 14,622,541 1.3
820,334 Grupo Tribasa, S.A. de C.V. (ADR) (2) 19,776,052 27,993,898 2.5
126,795 Internacional de Ceramica, S.A. de C.V.
'B' 433,309 824,074 0.1
251,000 Internacional de Ceramica, S.A. de C.V.
'C' 1,040,715 1,557,164 0.1
2,082,500 Tolmex, S.A. de C.V. 'B' 22,276,790 28,945,827 2.5
-------------- -------------- ------
90,808,741 112,755,641 10.0
Chemicals 972,300 Grupo Cydsa, S.A. de C.V. 3,467,300 3,538,770 0.3
Diversified 592,000 Desc, Sociedad de Fomento Industrial,
S.A. de C.V. 4,554,969 4,503,397 0.4
105,000 Grupo Carso, S.A. de C.V. 'A' 2,035,998 2,415,000 0.2
3,963,500 Grupo Carso, S.A. de C.V. (ADR) (2) 37,619,364 45,489,505 4.0
-------------- -------------- ------
44,210,331 52,407,902 4.6
Electrical 1,418,000 Grupo Empresarial Fenix, S.A. de C.V.
Elektra 'L' Shares 13,024,645 13,761,093 1.2
Engineering & 88,641 Grupo Mexicano de Desarrollo, S.A. de C.V.
Construction (Class B) 1,496,200 1,650,939 0.1
146,051 Grupo Mexicano de Desarrollo, S.A. de C.V.
(Class L) (ADR) (2) 2,588,866 2,939,276 0.3
-------------- -------------- ------
4,085,066 4,590,215 0.4
<PAGE>
Financial Services 220,000 Grupo Financiero (GBM) Atlantico, S.A.
de C.V. 'L' 4,742,022 5,060,000 0.4
380,000 Grupo Financiero (GBM) Atlantico, S.A.
de C.V. 2,270,875 2,130,694 0.2
-------------- -------------- ------
7,012,897 7,190,694 0.6
Food 3,253,846 Grupo Herdez, S.A. de C.V. 'A' 3,295,834 3,316,328 0.3
5,012,461 Grupo Herdez, S.A. de C.V. 'B' 6,285,722 5,153,136 0.5
6,249,189 Grupo Industrial Maseca, S.A. de C.V.
'B2' 7,035,714 11,483,000 1.0
-------------- -------------- ------
16,617,270 19,952,464 1.8
Foreign US$ 51,875,810 Mexican Cetes (Certificados de la
Government Tesoreria de la Federacion), 8.135%
Obligations due 9/01/1994 15,614,235 15,319,275 1.3
US$ 35,919,832 Pagares, 15.25% due 12/29/1994 10,000,000 10,106,185 0.9
-------------- -------------- ------
25,614,235 25,425,460 2.2
Glass 1,590,938 Vitro, S.A. de C.V. 11,381,655 12,031,909 1.1
Manufacturing 590,705 Vitro, S.A. de C.V. (ADR) (2) 12,296,440 13,217,024 1.2
-------------- -------------- ------
23,678,095 25,248,933 2.3
Health & Personal 134,500 Controladora de Farmacias, S.A. de C.V.
Care (COFAR) 199,610 194,697 0.0
1,322,250 Kimberly-Clark de Mexico, S.A. de
C.V. 'A' 17,536,911 27,460,613 2.4
940,500 Nacional de Drogas, S.A. de C.V.
(Nadro) 'L' 3,973,720 6,584,889 0.6
-------------- -------------- ------
21,710,241 34,240,199 3.0
Leisure 1,882,500 Grupo Posadas, S.A. de C.V. 'A' 1,819,673 1,740,687 0.2
434,300 Grupo Posadas, S.A. de C.V. (ADR) (2) 6,723,293 8,143,125 0.7
542,000 Grupo Situr, S.A. de C.V. 1,866,098 1,774,109 0.2
547,040 Grupo Situr, S.A. de C.V. (ADR) (2) 7,514,491 17,811,622 1.6
-------------- -------------- ------
17,923,555 29,469,543 2.7
Merchandising 656,000 Farmacias Benavides, S.A. de C.V. 2,926,674 2,817,796 0.2
<PAGE>
Metals & Steel 478,000 Grupo Industrial Alfa, S.A. de C.V. 4,575,335 5,457,814 0.5
543,000 Grupo Sidek, S.A. de C.V. 'B' 2,503,023 2,521,702 0.2
13,500 Grupo Sidek, S.A. de C.V. 'L' 63,816 72,665 0.0
314,100 Grupo Simec, S.A. de C.V. (ADR) (2) 8,207,957 8,794,800 0.8
1,830,000 Grupo Simec, S.A. de C.V. (Ordinary) 1,645,949 2,676,071 0.2
422,000 Tubos de Acero de Mexico, S.A. de C.V.
(Tamsa) 3,637,953 2,373,672 0.2
65,000 Tubos de Acero de Mexico, S.A. de C.V.
(Tamsa) (ADR) (2) 361,385 365,625 0.0
-------------- -------------- ------
20,995,418 22,262,349 1.9
Retail 5,571,000 Cifra, S.A. de C.V. 'C' 11,683,066 15,009,607 1.3
1,675,000 Controladora Comercial Mexicana, S.A.
de C.V. (COMERCI) 2,568,678 3,097,637 0.3
2,650,000 El Puerto de Liverpool, S.A. de C.V.
(Non-Voting) (Series C1) 3,531,930 3,757,755 0.3
8,740,000 Grupo Gigante, S.A. de C.V. 6,700,899 5,318,877 0.5
287,500 Sears Roebuck de Mexico, S.A. de C.V. 'B' 3,194,381 3,940,916 0.3
397,500 Sears Roebuck de Mexico, S.A. de C.V. 'B'
(ADR) 10,560,277 10,633,125 0.9
-------------- -------------- ------
38,239,231 41,757,917 3.6
Transportation 232,000 Transportacion Maritima Mexicana, S.A.
de C.V. 'L' (TMM) 2,281,781 2,062,984 0.2
Utilities 701,400 Telefonos de Mexico, S.A. de C.V. (Telmex)
(ADR) (2) 43,706,765 44,012,850 3.9
Total Long-Term Investments in Mexico 435,576,901 502,605,366 44.2
Panama Banking 80,000 Banco Latinoamericano de Exportaciones,
S.A. ("BLADEX") 'E' 1,992,245 2,900,000 0.3
Beverages & Tobacco 275,360 Panamerican Beverages Inc. (Class A) 8,479,005 9,052,460 0.8
Total Long-Term Investments in Panama 10,471,250 11,952,460 1.1
Peru Banking 2,441,382 Banco de Credito de Peru S.A. 2,685,608 4,243,044 0.4
1,976,061 Banco Wiese Limitado S.A. 7,194,477 8,524,185 0.8
-------------- -------------- ------
9,880,085 12,767,229 1.2
Beverages 40,000 Cerveceria Backus and Johnston S.A. 111,704 109,091 0.0
Building & 610,744 Cementos Lima S.A. 607,035 928,091 0.1
Construction
Food 2,231,145 La Fabril S.A. 4,989,105 3,678,804 0.3
Mining 2,079,480 Southern Peru Copper Corp. S.A. 7,088,243 9,405,848 0.8
<PAGE>
Total Long-Term Investments in Peru 22,676,172 26,889,063 2.4
Venezuela Building & 857,397 Corporacion Ceramica Carabobo S.A. 'B' 2,173,661 1,011,260 0.1
Construction 881,460 Corporacion Ceramica Carabobo S.A. C.A. 2,526,679 1,008,452 0.1
-------------- -------------- ------
4,700,340 2,019,712 0.2
Cement 413,663 Venezolana de Cementos S.A.C.A.
(Vencemos) 560,121 683,055 0.1
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Held/ Value Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Venezuela Food & Household 10,052,924 Mavesa S.A. $ 2,587,936 $ 3,112,452 0.3%
Products 380,000 Mavesa S.A. (ADR) (2) 3,519,375 2,137,500 0.2
366,666 Mavesa S.A. (ADR) (2) 4,010,625 2,062,496 0.2
-------------- -------------- ------
10,117,936 7,312,448 0.7
Foreign Government US$ 5,750,000 Republic of Venezuela, Floating Rate
Obligations Notes, 5.75% due 12/18/2007 (1) 4,300,625 2,738,438 0.2
Multi-Industry 2,756,823 Venaseta S.A. 711,151 308,897 0.0
1,378,411 Venaseta S.A. 'B' Shares 178,227 143,068 0.0
-------------- -------------- ------
889,378 451,965 0.0
Steel 216,000 Siderurgica Venezolana SIVENSA,
S.A.I.C.A.-S.A.C.A. (ADR) (2) 1,231,384 297,000 0.0
168,500 Venezolana de Prerreducidos Caroni
'Venprecar' C.A. (GDS) (3) 1,230,050 1,105,781 0.1
-------------- -------------- ------
2,461,434 1,402,781 0.1
Utilities 7,116,247 C.A. La Electricidad de Caracas
S.A.I.C.A.-S.A.C.A. 18,948,589 13,764,988 1.2
Total Long-Term Investments in Venezuela 41,978,423 28,373,387 2.5
Total Long-Term Investments in
Latin America 894,385,463 1,064,793,706 93.9
<PAGE>
<CAPTION>
Face
Amount Short-Term Investments
<S> <S> <C> <S> <C> <C> <C>
United Commercial US$ 28,363,000 General Electric Capital Corp., 4.75%
States Paper* due 9/01/1994 28,363,000 28,363,000 2.4
18,500,000 General Mills, Inc., 4.72% due 9/23/1994 18,446,637 18,446,637 1.6
40,000,000 National Australia Funding (Delaware)
Inc., 4.43% due 9/09/1994 39,960,622 39,960,622 3.5
-------------- -------------- ------
86,770,259 86,770,259 7.5
Total Short-Term Investments 86,770,259 86,770,259 7.5
Total Investments $ 981,155,722 1,151,563,965 101.4
==============
Liabilities in Excess of Other Assets (15,376,301) (1.4)
-------------- ------
Net Assets $1,136,187,664 100.0%
============== ======
Net Asset Class A--Based on net assets of $214,307,977 and 11,909,902
Value: shares outstanding $ 17.99
==============
Class B--Based on net assets of $921,879,687 and 51,527,633
shares outstanding $ 17.89
==============
<FN>
*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.
(a)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 under certain conditions until the expiration date.
(b)The rights may be exercised until 8/4/1994.
(1)The interest rate is subject to change periodically based on the change in
the LIBOR (London Interbank Offered Rate). The interest rate shown is
the rate in effect as of August 31, 1994.
(2)American Depositary Receipt (ADR).
(3)Global Depositary Shares (GDS).
</TABLE>
<PAGE>
PORTFOLIO INFORMATION
For the Quarter Ended August 31, 1994
Additions
Banpais, S.A. de C.V. (ADR)
Bonos de la Tesoreria de la Federacion,
7.77% due 8/10/1995
Carulla S.A. (ADR)
Cerveceria Backus and Johnston S.A.
Companhia Energetica de Minas Gerais S.A.
(CEMIG) (ADR)
Companhia Siderurgica de Tubarao S.A.
(CST)
Desc, Sociedad de Fomento Industrial,
S.A. de C.V.
Grupo Fernandez Editores, S.A. de C.V.
Grupo Financiero (GBM) Atlantico,
S.A. de C.V.
Grupo Financiero InverMexico, S.A. de C.V.,
7.50% due 6/16/2001
Grupo Sidek, S.A. de C.V. 'L'
Grupo Situr, S.A. de C.V.
La Cemento Nacional C.A.
Laboratorio Chile S.A. (LABCHILE)
(Rights)
Mexican Cetes (Certificados de la Tesoreria
de la Federacion), 8.135% due 9/01/1994
Pagares, 15.25% due 12/29/1994
Sears Roebuck de Mexico, S.A. de C.V. 'B'
Yacimientos Petroliferos Fiscales S.A.
(Sponsored) (ADR)
Deletions
Banco Bradesco S.A. (Preferred)
Banco Bradesco S.A. (Rights)
Distribuidora Chilectra Metropolitana S.A.
(Chilectra) (ADR)
Grupo Sidek, S.A. de C.V., 6.73%
due 7/27/1994
<PAGE>
Ten Largest Percent of
Equity Holdings Net Assets
Grupo Carso, S.A. de C.V. (a) 4.2%
Telefonos de Mexico, S.A. de C.V. (Telmex) (ADR) 3.9
Petroleo Brasileiro S.A. 2.9
Tolmex, S.A. de C.V. 'B' 2.5
Grupo Tribasa, S.A. de C.V. (ADR) 2.5
Kimberly-Clark de Mexico, S.A. de C.V. 'A' 2.4%
Cementos Mexicanos, S.A. de C.V. (Cemex) (b) 2.4
Telecom Argentina Stet--France Telecom S.A. (b) 2.3
Vitro, S.A. de C.V. (b) 2.3
Telecomunicacoes Brasileiras S.A.--Telebras (c) 2.1
[FN]
(a)Includes 'A' and ADR.
(b)Includes stock and ADR.
(c)Includes Ordinary and Preferred shares and ADR.
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 MetroTech Center
Brooklyn, New York 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
APPENDIX GRAPHIC AND IMAGE MATERIAL.
ITEM 1:
MERRILL LYNCH LATIN AMERICA FUND, INC.
Asset Allocation as a Percentage* of Net Assets as of
August 31, 1994
A map illustrating the following percentages:
MEXICO 44.2%
PANAMA 1.1
VENEZUELA 2.5
COLOMBIA 2.2
ECUADOR 1.0
PERU 2.4
BRAZIL 25.5
ARGENTINA 10.2
CHILE 4.8
[FN]
*Total may not equal 100%.
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