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Previous: LIBERTY TERM TRUST INC 1999, DEF 14A, 1994-04-08 |
Next: FIDELITY COURT STREET TRUST II, 497, 1994-04-08 |
MERRILL
LYNCH
LATIN
AMERICA
FUND, INC.
FUND LOGO
Quarterly Report February 28, 1994
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.
GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX
GRAPHIC AND IMAGE MATERIAL: Item 1.
DEAR SHAREHOLDER
Total returns for Merrill Lynch Latin America Fund, Inc.'s Class A and
Class B Shares rose 23.30% and 23.05%, respectively, during the quarter
ended February 28, 1994. A strong market performance in Brazil, which
accounts for more than 18% of the Fund's net assets, bolstered the Fund's
performance. A rebellion in southern Mexico, however, dampened the Mexican
market's euphoria stemming from passage of the North American Free Trade
Agreement. We have about 36% of the Fund's assets invested in this market.
Late in the February quarter, rises in US short-term interest rates
triggered a correction in emerging markets worldwide, including Latin
America. Because of our relatively large cash position (15.38% of net
assets), the Fund was less affected by this downturn in the market.
<PAGE>
Investment Overview
Although the Fund's largest concentration continues to be in Mexico, we
have increased our exposure to the Brazilian market. Among Latin American
countries, we believe that Brazil offers the greatest potential for an
economic turnaround. While countries such as Argentina, considered less
endowed with natural resources than Brazil, were restructuring their eco-
nomies, Brazil was distracted by political developments and scandals. As
a result, over the past five years real gross domestic product in Brazil
has grown at an average annual rate of less than 1% while the average for
the other countries in the region has been 3%. Even more dramatically,
while inflation for the region's countries other than Brazil has dropped
from 1,000% in 1989 to 26% in 1993, Brazil's inflation has actually in-
creased from 1,200% to more than 1,900% during the same period.
Currently, however, the consensus has swung so strongly in favor of change
in Brazil that politics are having much less of an effect. The country
can finally focus on economic reform and on the stabilization plan of
Economy Minister Fernando Henrique Cardoso. This stabilization plan con-
tains three basic stages: allow fiscal deficit reduction largely through
raising taxes; establish a single wage and price index to break inflation-
ary expectations; and, introduce a new currency based on this index. Al-
though results will not be realized for several months, it is our opinion
that this plan is likely to succeed.
During the February quarter, we added a position in the Brazilian company
Iochpe-Maxion S.A. We like the turnaround that is occurring in this com-
pany, which manufactures tractors and diesel engines, among other things.
The company's production cost base has declined as a result of its down-
sizing and streamlining efforts of the past two years. At the same time,
demand for diesel engines has picked up dramatically. Therefore, after
several successive years of losses, the company's earnings turned positive
in 1993. We expect replacement demand for agricultural machinery to further
boost sales.
Investment Outlook
We are compelled to remind the Fund's investors that Latin American stock
markets are more volatile than most other emerging markets because they
are less liquid and less developed. We expect uncertainties related to
presidential elections in Mexico, Brazil and Argentina, combined with
the effect which US interest rate trends increasingly have on Mexico and
Latin American countries, to increase the volatility experienced in the
region. We believe, however, that the countries in which we invest are on a
positive reform and growth track, and that there are many stock investments
which offer good value. In addition, we believe that market corrections will
be short term in nature. As such, we plan to increase the Fund's invest-
ments.
<PAGE>
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
March 23, 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--2/28/94 16.62 17.69 -- -- + 6.44
------
Total $0.559
Cumulative total return as of 2/28/94: +86.47%**
<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 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--2/28/94 16.61 17.65 -- -- + 6.26
------
Total $0.373
Cumulative total return as of 2/28/94: +82.98%**
<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>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/93 +64.27% +54.57%
Inception (9/27/91) through 12/31/93 +28.12 +25.83
[FN]
*Maximum sales charge is 4%. Maximum redemption fee is 2% and is reduced
to 0% after one year.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/93 +63.05% +55.80%
Inception (9/27/91) through 12/31/93 +27.15 +26.49
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0% after
4 years. Maximum redemption fee is 2% and is reduced to 0% after one year.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
2/28/94 11/30/93 2/28/93 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares $17.69 $14.45 $9.95 +77.79% +22.42%
Class B Shares 17.65 14.39 9.97 +77.03 +22.65
Class A Shares--Total Return +79.07(1) +23.30(1)
Class B Shares--Total Return +77.60(2) +23.05(2)
<FN>
*Investment results shown for the 3-month and 12-month periods are before the deduction of any sales charges or
redemption fees.
(1)Percent change includes reinvestment of $0.108 per share income dividends.
(2)Percent change includes reinvestment of $0.048 per share income dividends.
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Held/ Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Automobiles 737,708 Compania Interamericana de Automoviles
S.A. $ 9,869,984 $ 12,028,246 1.2%
Banking 521,826 Banco de Galicia y Buenos Aires S.A.
(ADR) (2) 3,250,066 4,984,937 0.5
51,750 Banco de Galicia y Buenos Aires S.A.
(Preferred) 1,049,513 1,966,500 0.2
185,000 Banco del Sud S.A. 3,224,461 3,941,683 0.4
658,181 Banco Frances del Rio de la Plata S.A. 3,854,286 7,703,022 0.7
------------ ------------ ------
11,378,326 18,596,142 1.8
Beverage 1,746 Buenos Aires Embotelladora S.A. (BAESA) 1,759,894 3,493,048 0.3
91,000 Buenos Aires Embotelladora S.A. (BAESA)
(ADR) (2) 2,575,194 3,685,500 0.4
------------ ------------ ------
4,335,088 7,178,548 0.7
Food 231,860 Quilmes Industrial S.A. 2,433,587 5,332,780 0.5
<PAGE>
Oil & Related 3,366,341 Astra Compania Argentina de Petroleo
S.A. 7,867,080 8,148,990 0.8
1,008,897 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 7,361,387 7,246,055 0.7
460,400 Yacimientos Petroliferos Fiscales S.A.--
Sponsored (ADR) (2) 12,137,121 12,545,900 1.3
------------ ------------ ------
27,365,588 27,940,945 2.8
Real Estate 1,193,565 Inversiones y Representaciones S.A.
(IRSA) 3,102,196 4,417,516 0.4
Tobacco 49,980 Massalin Particulares S.A. 508,374 799,920 0.1
Utilities 9,500 Central Costanera S.A. (Class B) 228,000 304,000 0.0
866,000 Telecom Argentina Stet--France Telecom
S.A. 5,307,028 5,544,063 0.5
270,580 Telecom Argentina Stet--France Telecom
S.A. (ADR) (2) 15,682,783 16,370,090 1.6
525,000 Telefonica de Argentina S.A. 3,009,246 3,991,197 0.4
70,276 Telefonica de Argentina S.A. (ADR) (2) 2,132,935 5,024,734 0.6
------------ ------------ ------
26,359,992 31,234,084 3.1
Total Long-Term Investments in
Argentina 85,353,135 107,528,181 10.6
Brazil Appliances 13,980,500 Brasmotor Group S.A. (Preferred) 1,730,444 3,422,721 0.3
1,016,000 Consul S.A. 527,444 884,934 0.1
------------ ------------ ------
2,257,888 4,307,655 0.4
Banking 513,392,310 Banco Bradesco S.A. 8,195,194 8,540,424 0.8
15,500,400 Banco Itau S.A. (Preferred) 2,460,710 3,527,241 0.3
148,566,371 Banco Nacional S.A. 8,610,290 10,025,665 1.1
5,170,000 Uniao de Bancos Brasileiros S.A.
(UNIBANCO) 356,424 454,363 0.0
------------ ------------ ------
19,622,618 22,547,693 2.2
Beverage 18,467,072 Companhia Cervejaria Brahma S.A.
(Preferred) 3,657,137 4,637,055 0.5
1,880,905 Companhia Cervejaria Brahma S.A.
(Warrants) (a) 48,935 9,784 0.0
------------ ------------ ------
3,706,072 4,646,839 0.5
Building & Construction 547,000 Companhia Cimento Portland Itau S.A.
PN 134,354 167,396 0.0
<PAGE>
Electrical & Electronics 675,841 Companhia Energetica de Sao Paulo S.A.
(CESP) 416,613 1,378,834 0.1
21,378,000 Light--Servicios de Electricidade S.A. 6,853,032 5,971,883 0.6
------------ ------------ ------
7,269,645 7,350,717 0.7
Food 1,113,040,981 Sadia Concordia S.A. Industria e
Comercio (Preferred) 9,486,950 10,812,498 1.1
Machinery 22,500,000 Iochpe-Maxion S.A. 8,650,840 9,886,653 1.0
Mining 119,256,800 Companhia Vale do Rio Doce S.A. 11,706,662 14,411,132 1.4
Oil & Related 108,410,000 Petroleo Brasileiro S.A. 18,388,455 18,204,441 1.8
Paper 243,234 Aracruz Celulose S.A. (Preferred) 647,358 744,360 0.1
Retail 2,910,880 Casa Anglo Brasileira S.A. 720,608 753,759 0.1
10,778,600 Lojas Americanas S.A. 2,125,943 3,213,958 0.3
1,067,200 Mesbla, S.A. 631,574 619,686 0.1
------------ ------------ ------
3,478,125 4,587,403 0.5
Steel 3,192,700 Acos Industria Villares S.A. 714,377 1,032,166 0.0
111,018,000 Companhia Siderurgica Nacional
S.A.--CSN 3,016,081 3,571,671 0.4
11,911,682,013 Usinas Siderurgicas de Minas
Gerais--Usiminas S.A. (Preferred) 6,628,103 13,646,464 1.4
------------ ------------ ------
10,358,561 18,250,301 1.8
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Held/ Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Brazil Telecommunications 45,827,897 Telecomunicacoes Brasileiras
(concluded) S.A.--Telebras $ 1,515,919 $ 1,711,714 0.2%
37,000 Telecomunicacoes Brasileiras
S.A.--Telebras (ADR) (2) 1,267,125 1,650,940 0.2
448,718,300 Telecomunicacoes Brasileiras
S.A.--Telebras (Preferred) 15,012,875 21,196,517 2.1
60,723,102 Telecomunicacoes de Minejeros S.A. 2,682,475 3,001,848 0.3
16,079,600 Telecomunicacoes de Sao Paulo
S.A.--TELESP (Preferred) 3,424,862 7,570,433 0.7
4,430,936 Telecomunicacoes Parana S.A.--TELEPAR
(Preferred) 754,996 1,321,284 0.1
------------ ------------ ------
24,658,252 36,452,736 3.6
<PAGE>
Textiles 873,000 Brasperola Industria e Comercio S.A. 931,692 931,638 0.1
3,327,640 Companhia de Tecidos Norte de Minas 790,023 1,044,457 0.1
------------ ------------ ------
1,721,715 1,976,095 0.2
Transportation 165,000 Marcopolo S.A. Carrocerias E
Onibus 'B' (Preferred) 25,066 49,200 0.0
Utilities 56,910,700 Centrais Eletricas Brasileiras
S.A.--Eletrobras 'B' (Preferred) 12,025,192 14,647,449 1.5
4,387,500 Centrais Eletricas da Santa Catarina
S.A. (CELESC) 764,541 3,132,945 0.3
1,320,038,828 Companhia Energetica de Minas Gerais
S.A. (CEMIG) 1,625,256 3,418,180 0.3
180,000,000 Companhia Paulista de Forca e Luz S.A. 10,464,116 9,887,006 1.0
------------ ------------ ------
24,879,105 31,085,580 3.1
Total Long-Term Investments in Brazil 146,991,666 185,480,699 18.4
Chile Apparel 3,470,235 Bata Chile S.A. 979,375 970,695 0.1
Beverage 11,000 Embotelladora Andina S.A. 43,637 43,333 0.0
2,704,625 Vina Concha y Toro S.A. 1,176,792 1,241,984 0.1
------------ ------------ ------
1,220,429 1,285,317 0.1
Building & 338,225 Empresas Pizarreno S.A. 644,310 622,839 0.1
Construction 285,200 Maderas y Sinteticos S.A. (MASISA)
(Foreign) (ADR) (2) 4,497,944 7,415,200 0.7
128,445 Maderas y Sinteticos S.A. (MASISA)
(Ordinary) 57,151 110,481 0.0
------------ ------------ ------
5,199,405 8,148,520 0.8
Chemicals 341,000 Sociedad Quimica y Minera de Chile S.A.
(ADR) (2) 10,825,726 11,423,500 1.1
Closed-End Funds 194,984 The Chile Fund, Inc. 5,611,483 9,407,978 0.9
Food & Household
Products 37,500 Cristalerias de Chile S.A. 895,312 900,000 0.1
Pharmaceutical 1,892,536 Laboratorio Chile S.A. (LABCHILE) 1,166,264 1,746,956 0.2
Retail Sales 400,000 Santa Isabel S.A. 281,952 231,235 0.0
<PAGE>
Steel 459,306 Compania de Acero del Pacifico S.A.
de Inv. (CAP) 2,617,279 2,548,131 0.3
Telecommunications 213,118 Empresa Nacional de Telecomunica-
ciones S.A. (Entel) 1,449,275 3,253,900 0.3
Utilities 188,325 Compania de Telefonos de Chile S.A.
(ADR) (2) 22,309,418 21,986,944 2.2
144,000 Distribuidora Chilectra Metropolitana
S.A. (Chilectra) (ADR) (2) 3,815,919 5,346,000 0.5
5,531,748 Empresa Nacional de Electricidad S.A.--
ENDESA 2,255,686 3,126,921 0.3
34,000 Enersis S.A. (ADR) (2) 618,250 722,500 0.1
------------ ------------ ------
28,999,273 31,182,365 3.1
Total Long-Term Investments in Chile 59,245,773 71,098,597 7.0
Colombia Banking 397,971 Banco de Bogota 1,449,888 2,939,752 0.3
US $9,000,000 Banco de Colombia, 5.20% due 2/01/1999 11,347,500 12,375,000 1.2
------------ ------------ ------
12,797,388 15,314,752 1.5
Retail 530,129 Gran Cadena de Almacenes Colombianos
(CADENALCO) 994,422 1,681,512 0.2
Total Long-Term Investments in Colombia 13,791,810 16,996,264 1.7
Mexico Banking 144,800 Grupo Financiero Bancomer, S.A. de C.V.
(ADR) (2) 4,418,248 5,140,400 0.5
350,000 Grupo Financiero Bancomer, S.A. de C.V.
'B' (Ordinary) 547,559 444,357 0.0
736,000 Grupo Financiero Probursa, S.A. de C.V.
'C' 806,262 1,213,593 0.1
581,900 Servicios Financieros Quadrum, S.A.
de C.V. (ADR) (2) 10,311,887 16,947,838 1.7
------------ ------------ ------
16,083,956 23,746,188 2.3
Beverages & Tobacco 25,600 Coca-Cola Femsa S.A. (ADR) (2) 543,499 812,800 0.1
449,000 Fomento Economico Mexicano, S.A.
de C.V. (Femsa) (ADR) (2) 2,483,860 2,851,150 0.3
683,500 Fomento Economico Mexicano, S.A.
de C.V. (Femsa) (Ordinary) 2,530,446 4,285,267 0.4
192,000 Grupo Embotellador de Mexico, S.A.
de C.V. (GGEMEX) (ADR) (2) 3,331,200 6,468,000 0.6
180,000 Grupo Embotellador de Mexico, S.A.
de C.V. (Ordinary) 3,310,000 3,075,235 0.3
------------ ------------ ------
12,199,005 17,492,452 1.7
<PAGE>
Building & 952,000 Apasco, S.A. de C.V. 'A' 3,981,144 8,744,075 0.9
Construction 67,500 Bufete Industrial, S.A. (ADR) (2) 1,552,500 3,105,000 0.3
48,000 Cementos Mexicanos, S.A. de C.V.
(Class B) (ADR) (2) 2,912,366 2,856,000 0.3
493,500 Cementos Mexicanos, S.A. de C.V.
Nom 'B' (Cemex) 11,388,997 14,542,006 1.4
1,918,500 Grupo Financiero Banamex--Accival, S.A.
de C.V. 18,565,861 16,238,088 1.6
416,543 Grupo Tribasa, S.A. de C.V. (ADR) (2) 7,695,379 15,099,684 1.6
126,795 Internacional de Ceramica, S.A.
de C.V. 'B' 433,309 874,448 0.1
251,000 Internacional de Ceramica, S.A.
de C.V. 'C' 1,040,715 1,817,586 0.2
908,500 Tolmex, S.A. de C.V. 'B' 7,138,389 12,616,473 1.2
------------ ------------ ------
54,708,660 75,893,360 7.6
Chemicals 972,300 Grupo Cydsa, S.A. de C.V. 3,467,300 4,053,790 0.4
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Held/ Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Mexico Diversified 3,113,500 Grupo Carso, S.A. de C.V. $ 27,436,678 $ 31,720,611 3.1%
(concluded)
Electrical 618,000 Grupo Empresarial Fenix, S.A. de C.V.
Elektra 'L' Shares 5,376,826 6,102,508 0.6
Engineering & 77,200 Grupo Mexicano de Desarrollo (Class B) 1,312,400 1,553,650 0.1
Construction 127,200 Grupo Mexicano de Desarrollo (Class L)
(ADR) (2) 2,286,025 2,607,600 0.3
------------ ------------ ------
3,598,425 4,161,250 0.4
Food 3,253,846 Grupo Herdez, S.A. de C.V. 'A' 3,295,834 3,978,056 0.4
5,012,461 Grupo Herdez, S.A. de C.V. 'B' 6,285,722 6,190,939 0.6
6,249,189 Grupo Industrial Maseca, S.A.
de C.V. 'B2' 7,035,714 10,382,665 1.0
------------ ------------ ------
16,617,270 20,551,660 2.0
<PAGE>
Glass Manufacturing 927,200 Vitro, S.A. (ADR) (2) 7,554,030 8,049,632 0.7
Health & Personal Care 134,500 Controladora de Farmacias, S.A. de C.V.
(COFAR) 199,608 223,464 0.0
1,322,250 Kimberly-Clark de Mexico, S.A.
de C.V. 'A' 17,536,911 24,828,456 2.5
940,500 Nacional de Drogas, S.A. de C.V.
(Nadro) 'L' 3,973,720 7,002,155 0.7
------------ ------------ ------
21,710,239 32,054,075 3.2
Leisure 1,500,000 Grupo Posadas, S.A. de C.V. 'A' 1,499,940 1,598,746 0.2
394,500 Grupo Posadas, S.A. de C.V. (ADR) (2) 5,970,133 8,679,000 0.9
547,040 Grupo Situr, S.A. de C.V. (ADR) (2) 7,514,491 15,795,780 1.5
------------ ------------ ------
14,984,564 26,073,526 2.6
Merchandising 656,000 Farmacias Benavides, S.A. de C.V. 2,926,674 3,936,000 0.4
Retail 4,650,000 Cifra, S.A. de C.V. 'C' 9,166,230 12,302,821 1.2
1,675,000 Controladora Comercial Mexicana, S.A.
de C.V. (COMERCI) 2,568,678 3,255,486 0.3
2,650,000 El Puerto de Liverpool, S.A. de C.V.
(Non-Voting) (Series C1) 3,531,930 4,319,749 0.4
8,740,000 Grupo Gigante, S.A. de C.V. 6,700,899 6,356,364 0.7
137,500 Sears Roebuck de Mexico, S.A.
de C.V. 'B' 1,280,978 2,099,138 0.2
------------ ------------ ------
23,248,715 28,333,558 2.8
Steel 393,000 Grupo Industrial Alfa, S.A. de C.V. 3,610,739 3,387,931 0.3
320,000 Grupo Sidek, S.A. de C.V. 'B' 1,555,259 1,518,746 0.2
298,300 Grupo Simec, S.A. de C.V. (ADR) (2) 7,395,672 8,203,250 0.8
1,830,000 Grupo Simec, S.A. de C.V. (Ordinary) 1,645,949 2,753,605 0.3
422,000 Tubos de Acero de Mexico, S.A. de C.V.
(Tamsa) 3,637,953 2,513,480 0.3
65,000 Tubos de Acero de Mexico, S.A. de C.V.
(Tamsa) (ADR) (2) 361,385 390,000 0.0
------------ ------------ ------
18,206,957 18,767,012 1.9
Telecommunications 100,000 Alcatel Indetel, S.A. de C.V. 'B' 1,071,575 689,655 0.1
Transportation 232,000 Transportacion Maritima Mexicana, S.A.
de C.V. 'L' (TMM) 2,281,781 2,210,909 0.2
Utilities 604,400 Empresas ICA Sociedad Controladora,
S.A. de C.V. (ADR) (2) 14,592,709 16,696,550 1.7
665,400 Telefonos de Mexico, S.A. de C.V.
(Telmex) (ADR) (2) 41,689,855 44,664,975 4.4
------------ ------------ ------
56,282,564 61,361,525 6.1
Total Long-Term Investments in Mexico 287,755,219 365,197,711 36.1
<PAGE>
Panama Banking 80,000 Banco Latinoamericano de Exporta-
ciones, S.A. ("BLADEX") 'E' 1,992,245 3,470,000 0.3
Beverages & Tobacco 46,360 Panamerican Beverages Inc. 1,410,475 1,854,400 0.2
Total Long-Term Investments in Panama 3,402,720 5,324,400 0.5
Peru Banking 1,483,812 Banco de Credito de Peru S.A. 2,033,580 4,384,301 0.5
218,993 Banco Wiese Limitado 1,393,631 2,325,410 0.2
------------ ------------ ------
3,427,211 6,709,711 0.7
Beverages 994,226 Compania Nacional de Cerveza S.A. 1,305,585 1,367,864 0.1
Building & 442,517 Cementos Lima S.A. 834,883 1,699,788 0.2
Construction
Food 1,901,578 La Fabril S.A. 4,667,748 6,145,451 0.6
Mining 1,030,171 Southern Peru Copper Corp. S.A. 4,038,057 4,389,879 0.4
Total Long-Term Investments in Peru 14,273,484 20,312,693 2.0
Venezuela Building & 857,242 Corporacion Ceramica Carabobo 'B' 2,173,661 2,308,462 0.2
Construction 1,059,950 Corporacion Ceramica Carabobo C.A. 2,959,511 2,944,569 0.3
------------ ------------ ------
5,133,172 5,253,031 0.5
Cement 413,700 Venezolana de Cementos S.A.C.A.
(Vencemos) 560,121 722,928 0.1
Food & Household 7,539,693 Mavesa S.A. 2,587,936 5,405,282 0.5
Products 225,000 Mavesa S.A. (ADR) (2) 2,645,625 3,093,750 0.3
------------ ------------ ------
5,233,561 8,499,032 0.8
Foreign Government US$ 5,750,000 Republic of Venezuela, Floating
Obligations Rate Notes, 4.312% due 12/18/2007 (1) 4,300,625 3,442,813 0.3
Multi-Industry 1,837,882 Venaseta S.A. 592,332 247,049 0.0
2,297,352 Venaseta S.A. "B" Shares 297,046 284,107 0.1
------------ ------------ ------
889,378 531,156 0.1
<PAGE>
Steel 216,000 Siderurgica Venezolana SIVENSA,
S.A.I.C.A.-S.A.C.A. (ADR) (2) 1,231,384 459,000 0.1
168,500 Venezolana de Prerreducidos Caroni
'Venprecar' C.A. (GDS) (3) 1,230,050 1,200,563 0.1
------------ ------------ ------
2,461,434 1,659,563 0.2
Utilities 4,488,313 C.A. La Electricidad de Caracas
S.A.I.C.A.-S.A.C.A. 14,468,702 15,042,825 1.5
Total Long-Term Investments in Venezuela 33,046,993 35,151,348 3.5
Total Long-Term Investments in
Latin America 643,860,800 807,089,893 79.8
</TABLE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Percent of
COUNTRY Face Amount Short-Term Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Commercial Paper* US$ 6,000,000 CSW Credit Inc., 3.25% due 3/01/1994 $ 6,000,000 $ 6,000,000 0.6%
States 10,000,000 Ciesco L.P., 3.35% due 3/16/1994 9,986,042 9,986,042 1.0
10,000,000 Corporate Asset Funding Corp., 3.38%
due 3/18/1994 9,984,039 9,984,039 1.0
38,752,000 General Electric Capital Corp., 3.40%
due 3/01/1994 38,752,000 38,752,000 3.8
10,000,000 Matterhorn Capital Corp., 3.38%
due 3/25/1994 9,977,467 9,977,467 1.0
11,000,000 PHH Corp., 3.12% due 3/04/1994 10,997,140 10,997,140 1.1
19,000,000 Preferred Receivables Funding Corp., 3.45%
due 4/12/1994 18,923,525 18,923,525 1.9
10,000,000 Sanwa Bank, 3.40% due 3/30/1994 9,972,611 9,972,611 1.0
40,000,000 Sheffield Receivables Co., 3.50%
due 4/04/1994 39,867,778 39,867,778 3.9
Total Short-Term Investments 154,460,602 154,460,602 15.3
Total Investments $798,321,402 961,550,495 95.1
============
Other Assets Less Liabilities 49,050,799 4.9
-------------- ------
Net Assets $1,010,601,294 100.0%
============== ======
Net Asset Value:
Class A--Based on net assets of $204,216,533 and 11,547,031 shares outstanding $ 17.69
==============
Class B--Based on net assets of $806,384,761 and 45,681,855 shares outstanding $ 17.65
==============
<PAGE>
<FN>
(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 February 28, 1994.
(2)American Depositary Receipt (ADR).
(3)Global Depositary Shares (GDS).
*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.
</TABLE>
PORTFOLIO INFORMATION
Ten Largest Equity Holdings Percent of
As of February 28, 1994 Net Assets
Telefonos de Mexico, S.A. de C.V. (Telmex) (ADR) 4.4%
Grupo Carso, S.A. de C.V. 3.1
Kimberly-Clark de Mexico, S.A. de C.V. 'A' 2.5
Compania de Telefonos de Chile S.A. (ADR) 2.2
Telecomunicacoes Brasileiras S.A.--Telebras (Preferred) 2.1
Petroleo Brasileiro S.A. 1.8
Servicios Financieros Quadrum, S.A. de C.V. (ADR) 1.7
Empresas ICA Sociedad Controladora, S.A. de C.V. (ADR) 1.7
Telecom Argentina Stet--France Telecom S.A. (ADR) 1.6
Grupo Financiero Banamex--Accival, S.A. de C.V. 1.6
<PAGE>
PORTFOLIO CHANGES
For the Quarter Ended February 28, 1994
Additions
Banco de Colombia, 5.20% due 2/01/1999
Banco del Sud S.A.
Brasperola Industria e Comercio S.A.
Casa Anglo Brasileira S.A.
Cementos Mexicanos, S.A. de C.V. (Class B) (ADR)
Central Costanera S.A. (Class B)
Companhia de Tecidos Norte de Minas
Companhia Paulista de Forca e Luz S.A.
Companhia Vale do Rio Doce S.A.
Compania de Acero del Pacifico S.A. de Inv. (CAP)
Compania Interamericana de Automoviles S.A.
Cristalerias de Chile S.A.
Embotelladora Andina S.A.
Grupo Embotellador de Mexico, S.A. de C.V. (Ordinary)
Grupo Empresarial Fenix, S.A. de C.V. Elektra 'L' Shares
Grupo Financiero Banamex--Accival, S.A. de C.V.
Grupo Financiero Bancomer, S.A. de C.V. 'B' (Ordinary)
Grupo Mexicano de Desarrollo (Class B)
Grupo Mexicano de Desarrollo (Class L) (ADR)
Grupo Posadas, S.A. de C.V. (ADR)
Grupo Sidek, S.A. de C.V. 'B'
Iochpe-Maxion S.A.
La Fabril S.A.
Light--Servicios de Electricidade S.A.
Mesbla, S.A.
Petroleo Brasileiro S.A.
Santa Isabel S.A.
Telecomunicacoes Brasileiras S.A.--Telebras (ADR) Telecomunicacoes de
Minejeros S.A.
Deletion
Companhia Vale do Rio Doce S.A. (CVRD) (Preferred)
<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 MetroTech Center
Brooklyn, New York 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
APPENDIX: GRAPIC AND IMAGE MATERIAL.
Item 1:
Asset Allocation as a Percentage* of Net Assets as of February 24,
1994
A map illustrating the following percentages:
Mexico 36.1%
Panama 0.5%
Venezuela 3.5%
Colombia 1.7%
Peru 2.0%
Brazil 18.4%
Argentina 10.6%
Chile 7.0%
[FN]
*Total may not equal 100%.
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