<PAGE>
-----------------------------------------------------------
MORGAN STANLEY
DEAN WITTER
EMERGING MARKETS
FUND, INC.
-----------------------------------------------------------
THIRD QUARTER REPORT
SEPTEMBER 30, 1999
MORGAN STANLEY DEAN WITTER
INVESTMENT MANAGEMENT INC.
INVESTMENT ADVISER
MORGAN STANLEY DEAN WITTER
EMERGING MARKETS FUND, INC.
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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
John A. Levin
DIRECTOR
William G. Morton, Jr.
DIRECTOR
Stefanie V. Chang
VICE PRESIDENT
Harold J. Schaaff, Jr.
VICE PRESIDENT
Joseph P. Stadler
VICE PRESIDENT
Mary E. Mullin
SECRETARY
Belinda A. Brady
TREASURER
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INVESTMENT ADVISER
Morgan Stanley Dean Witter Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020
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ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
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CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
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SHAREHOLDER SERVICING AGENT
Boston Equiserve
Investor Relations Department
P.O. Box 644
Boston, Massachusetts 02102-0644
(800) 730-6001
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LEGAL COUNSEL
Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
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INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
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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 or visit our website at
www.msdw.com/institutional/investmentmanagement.
<PAGE>
LETTER TO SHAREHOLDERS
- ---------
For the nine months ended September 30, 1999, the Morgan Stanley Dean Witter
Emerging Markets Fund, Inc. (the "Fund") had a total return, based on net asset
value per share, of 34.75% compared with 32.66% for the Morgan Stanley Capital
International (MSCI) Emerging Markets Free Index (the "Index") and 32.83% for
the IFC Global Total Return Composite Index. For the period since commencement
of operations on November 1, 1991 through September 30, 1999, the Fund's total
return, based on net asset value per share, was 125.18% compared with 74.11% for
the Index and 49.16% for the IFC Global Total Return Composite Index. On
September 30, 1999, the closing price of the Fund's shares on the New York Stock
Exchange was $11.00, representing a 21% discount to the Fund's net asset value
per share.
Outperformance relative to the Index for the quarter was largely attributable to
strong stock selection. Indian and South Korean equity selections were
particularly strong as our focus on technology stocks benefited performance.
Stock selection in Taiwan, Thailand and Turkey also contributed to performance.
On a country basis, our positions in Asia and in the Middle East contributed
favorably to performance. Specifically, our overweight positions in Pakistan
(+16.5%) and Turkey (+7.9%) in combination with our underweight stance in the
Philippines (-23.7%) and Thailand (-32.0%) helped performance. Less favorable
were our underweight position in Greece (+33.3%) and overweight stance in
Indonesia (-35.1%).
The emerging markets evidenced great diversity in their performances during the
third quarter. In general, the positive effects of rallying commodity prices,
improving economic fundamentals and strong corporate earnings were eclipsed by
investor concerns regarding the direction of U.S. inflation and interest rates.
Emerging markets faced great adversities during the third quarter, including
heightened political tensions (Indonesia), scandals (Indonesia and South Korea)
and earthquakes (Greece, Turkey, Taiwan and Mexico).
The recent widening of risk premia in the emerging markets has been induced by
numerous factors, including a global tightening in risk appetite, the rise in
U.S. interest rates, the partial Ecuadorian Brady bond default and the violent
turmoil in Indonesia. With the reversal of commodity price deflation, many
emerging markets are experiencing improvements in their terms of trade. The
external surpluses of the Asian economies help to isolate the region from the
worst affects of a U.S. monetary tightening. Those countries with current
account surpluses or whose current account deficits can be financed by Foreign
Direct Investment will have greater flexibility and independence in structuring
their economic policies.
The Latin American region declined 9.0% during the third quarter. Political
noise and investor skittishness over U.S. inflation and interest rates prevailed
over support from improving commodity prices and economic fundamentals, and some
robust corporate earnings. Ecuador's partial default set the precarious
precedent that defaulting on external debt without an IMF bailout may become the
way of the future. Yet the implications may be subdued as the major Latin
countries are heavily dependent on foreign capital for their survival and have
governments which act more responsibly regarding debt obligations. Within Latin
America, we are modestly overweight Brazil. Brazil declined 8.8% during the
third quarter, weighed down by the absence of political commitment to enact
reforms intended to reduce the fiscal deficit. However, the Brazilian economy
has shown great resilience since the currency devaluation at the beginning of
the year, as evidenced by rather disciplined inflation and unemployment figures.
We believe Brazilian assets are attractively valued and may be poised for a
rebound given a decline in domestic interest rates and a cyclical recovery in
earnings growth. We are focusing on the telecommunications and energy resources
industries in Brazil, where good management and improving operating margins bode
well for earnings growth.
Mexico (-13.7%) remains our favorite Latin American market due to promising
economic fundamentals and corporate earnings growth potential coupled with
attractive valuations. Our relatively neutral stance is based on political
anxieties surrounding upcoming elections coupled with the predominance of
investor concerns regarding U.S. inflation and interest rates over dynamic
corporate earnings. We maintain overweight positions in the building materials
and components and broadcasting and publishing industries, focusing on companies
such as Cemex and Televisa, which we believe represent strong earnings growth
potential.
Asian equities declined 7.7% during the third quarter. Indonesia fell 35.1%,
weighed down by political tensions and the emergence of the "Baligate" scandal,
involving graft claims against three government agencies. Erupting violence in
East Timor at the end of August exacerbated weakening market returns. We
maintain our overweight position in Indonesia, as we find asset prices
attractive and believe economic rationality will ultimately prevail in the
tenuous political situation.
Taiwan (-7.7%) initially benefited during the third quarter from diminishing
tensions with China and increased liquidity when MSCI declared on August 12 that
it will increase Taiwan's market capitalization weighting from 50% to 100% in
the MSCI Emerging Markets Free Index next year. Equities were pulled down
towards the end of the
2
<PAGE>
third quarter when the most powerful earthquake to ever strike Taiwan hit on
September 21. We expect the impact on Taiwanese electronic and semiconductor
companies will be limited to the short-term, and we believe that Taiwan is well
positioned to gain from the continuing cyclical upturn and trend in outsourcing
various computer components. During the third quarter we added to our overweight
position in Taiwan, increasing exposure to transportation-shipping and the
electronic components and instruments industries.
South Korean equities fell 9.6% during the third quarter, as investor sentiment
was dampened by U.S. interest rate anxieties and continued uncertainty and
ambiguity regarding the restructuring plans for chaebol Daewoo corporation. We
maintain our overweight position in South Korea but trimmed some of our exposure
to the South Korean banking industry, based on concerns regarding how the Daewoo
group's restructuring may affect the solvency and loan portfolios of creditor
banks. We also selectively trimmed significant overweights in stocks such as
Samsung Electronics and Korea Telecom.
India was the star performer of the Asian region during the third quarter,
gaining 21.2%. Investors were fixated on the upcoming presidential elections in
October, anticipating the likely formation of a stable, majority-led government.
Such an election outcome would help accelerate the reform process and
privatizations. Continued lower inflation and signs of an industrial turnaround
indicate the Indian economy is on the mend. We have added to our overweight
position in India, as we are compelled by evidence of corporate restructuring
and increasing management focus on return on equity. During the third quarter we
trimmed some significant overweight positions, such as Infosys and Satyam, to
take advantage of price appreciation and to fund other purchases. We believe
technology, cyclical and cement companies will continue to perform well.
The Emerging Europe and the Middle East region led the emerging markets during
the third quarter, gaining 6.7%. The markets in this region posted mixed
returns. Greece (+33.3%), Turkey (+7.9%) and Czech Republic (+7.4%) performed
well, while the equities markets in Russia (-31.4%) and Poland (-21.2%) lagged
the region. Despite the rally in oil prices, Russia was weighed down by
political instability, including upcoming Duma (Russia's lower house of
parliament) elections, terrorist bombings in Moscow and the war with Chechnya.
Polish equities were pressured by Poland's large current account deficit and the
announcement that further privatization of TPSA, Poland's telephone service
provider, would be delayed until next year. We maintain overweight positions in
both Russia and Poland, concentrating on those holdings that are attractively
valued and that we believe are poised for earnings growth over the longer-term.
Turkey had notably strong performance in light of the devastating earthquake on
August 17 that killed nearly fifteen thousand people and destroyed residential
buildings and commercial and industrial facilities. The Istanbul Stock Exchange
was closed until August 26 as companies attempted to assess damage. Stock prices
stabilized soon after the market reopened, and promises of international aid
including U.S.$330 million from the IMF should help allay the earthquake's
financial ramifications. The passage of two key reform bills (social security
and international arbitration) by the Turkish parliament in mid-August, that
were requisite for receiving new IMF loans, buoyed investor sentiment. We are
encouraged by these recent reforms that should foster a structural decline in
inflation and future interest rate reductions. We maintain an overweight
position in Turkey and took advantage of depressed valuations to add to our
holdings.
Greece was the star performer of the Eastern Europe and Middle East region, as
the Greek equities market was fueled by tremendous liquidity and bank
consolidations. During the third quarter, we reduced our positions in Greece, as
we believe Greek equities are expensively valued.
We added to our positions in Israel (-9.6%) during the third quarter, and are
now modestly overweight. Positive sentiment in Israel may be reinforced by
perceptions of a strong coalition government and progress on the Wye peace
agreement, privatizations and rationalizations. However, the limited scope for
monetary easing and a widening current account deficit temper enthusiasm for the
market. Our purchases in Israel during the third quarter were focused within the
electrical and electronics, electronic components and instruments, and
telecommunications industries. We purchased technology companies including ECI
Telecom and DSP Group, based on attractive valuations coupled with improved
operating outlooks.
South African equities declined 3.0% during the third quarter, in sympathy with
emerging markets in general. However, performance across industries was uneven,
as commodity stocks gained more than 20% while financials and industrials fell
over 12%. Interest rates continued to fall during the third quarter, with the
prime lending rate dropping from 18% to 15.5%. Stronger commodity prices and
foreign exchange inflows from the listing of South African companies in London
helped the Rand remain relatively strong. We remain underweight South Africa,
yet we increased holdings in some commodity stocks during the third quarter,
including Billiton and Amplats, which
3
<PAGE>
mine aluminum and platinum, respectively. We reduced holdings in insurance
companies, finding more attractive opportunities elsewhere, including stocks in
South Africa's information technology sector.
On July 30, 1998, the Fund commenced a share repurchase program for purposes of
enhancing shareholder value and reducing the discount at which the Fund's shares
traded from their net asset value. For the nine months ended September 30, 1999,
the Fund repurchased 960,600 shares of its Common Stock at an average price per
shars of $9.60 and an average discount of 17.50% from net asset value per share.
The Fund expects to continue to repurchase its outstanding shares at such time
and in such amounts as it believes will further the accomplishment of the
foregoing objectives, subject to review by the Board of Directors.
Sincerely,
/s/ Michael F. Klein
Michael F. Klein
PRESIDENT AND DIRECTOR
October 1999
THE INFORMATION CONTAINED IN THIS OVERVIEW REGARDING SPECIFIC SECURITIES IS FOR
INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS A RECOMMENDATION TO
PURCHASE OR SELL THE SECURITIES MENTIONED.
- -------------------------------------------------------------------------------
DAILY NET ASSET AND MARKET VALUES, AS WELL AS MONTHLY PORTFOLIO INFORMATION FOR
THE FUND, ARE AVAILABLE ON OUR WEBSITE AT
WWW.MSDW.COM/INSTITUTIONAL/INVESTMENTMANAGEMENT.
4
<PAGE>
Morgan Stanley Dean Witter Emerging Markets Fund, Inc.
Investment Summary as of September 30, 1999 (Unaudited)
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<TABLE>
<CAPTION>
HISTORICAL
INFORMATION
TOTAL RETURN (%)
----------------------------------------------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2) MSCI INDEX (3) IFC INDEX (4)
--------------------- -------------------- -------------------- --------------------
AVERAGE AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
---------- ------- ---------- ------- ---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fiscal Year to Date 35.38% -- 34.75% -- 32.66% -- 32.83% --
One Year 60.00 60.00% 55.53 55.53% 56.52 56.52% 54.71 54.71%
Five Year -32.85+ -7.66+ -11.87+ -2.50+ -24.65+ -5.50+ -24.99+ -5.59+
Since Inception* 77.94+ 7.55+ 125.18+ 10.80+ 74.11+ 7.26+ 49.16+ 5.18+
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- -------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
[GRAPH]
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, NINE MONTHS
ENDED
SEPTEMBER 30,
1991* 1992 1993 1994 1995 1996 1997 1998 1999
------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value Per Share...... $14.71 $16.74 $28.20 $20.30 $14.69 $15.69 $15.52 $10.33 $13.92
Market Value Per Share......... $14.25 $18.13 $31.63 $21.50 $15.50 $13.88 $13.06 $ 8.13 $11.00
Premium/(Discount)............. -3.1% 8.3% 12.2% 5.9% 5.5% -11.5% -15.9% -21.3% -21.0%
Income Dividends............... $ 0.04 $ 0.01 -- -- -- $ 0.05 $0.01 $ 0.11 --
Capital Gains Distributions.... -- $ 0.01 $ 1.49 $ 6.50 $ 1.29 $ 0.98 $0.01 $ 2.18 --
Fund Total Return (2).......... 4.61% 13.94% 95.22%+ -5.33% -16.30%+ 13.84% -0.97% -19.61% 34.75%
MSCI Index Total Return (3).... 9.58% 11.40% 74.84% -7.32% -5.21% 6.03% -11.59% -25.34% 32.66%
IFC Index Total Return (4)..... 5.29% 0.33% 67.50% -0.53% -12.32% 7.88% -14.54% -21.09% 32.83%
</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 Morgan Stanley Capital International Emerging Markets Free Index is a
market capitalization weighted index composed of companies that are
representative of the market structure of developing countries in Latin
America, Asia, Eastern Europe, the Middle East and Africa.
(4) The IFC Global Total Return Composite Index is an unmanaged index of
common stocks of developing countries in Latin America, East and South
Asia, Europe, the Middle East and Africa, including dividends.
* The Fund commenced operations on November 1, 1991.
+ This return does not include the effect of the rights issued in
connection with the Rights Offering.
5
<PAGE>
Morgan Stanley Dean Witter Emerging Markets Fund, Inc.
Portfolio Summary as of September 30, 1999 (Unaudited)
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- -------------------------------------------------------------------------------
DIVERSIFICATION OF TOTAL INVESTMENTS
[CHART}
<TABLE>
<S> <C>
Equity Securities (95.7%)
Debt Instruments (0.2%)
Short-Term Investments (4.1%)
</TABLE>
- -------------------------------------------------------------------------------
INDUSTRIES
[CHART}
<TABLE>
<S> <C>
Appliances & Household Durables (7.3%)
Banking (9.2%)
Beverages & Tobacco (5.9%)
Broadcasting & Publishing (4.1%)
Data Processing & Reproduction (5.3%)
Electrical & Electronics (7.1%)
Electronic Components, Instruments (10.1%)
Financial Services (3.1%)
Telecommunications--Integrated (14.4%)
Telecommunications--Wireless (3.4%)
Other (30.1%)
</TABLE>
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COUNTRY WEIGHTINGS
[CHART}
<TABLE>
<S> <C>
South Korea (15.2%)
Taiwan (14.7%)
India (11.9%)
Mexico (11.0%)
Brazil (8.4%)
South Africa (6.7%)
Turkey (6.0%)
Israel (4.3%)
Indonesia (3.0%)
Greece (2.2%)
Other (16.6%)
</TABLE>
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TEN LARGEST HOLDINGS*
[CHART}
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. Samsung Electronics
(South Korea) 6.4%
2. Taiwan Semiconductor (Taiwan) 3.4
3. Telemex (Mexico) 3.1
4. Infosys Technology Ltd. (India) 2.9
5. Grupo Televisa (Mexico) 2.3
6. Hellenic Telecommunication
Organization (OTE) (Greece) 2.1
7. Korea Telecom (South Korea) 2.1
8. Cemex SA (Mexico) 2.1
9. FEMSA (Mexico) 1.6
10. United Microelectronics (Taiwan) 1.5
-----
27.5%
-----
-----
</TABLE>
* Excludes short-term investments.
6
<PAGE>
FINANCIAL STATEMENTS
- ---------
STATEMENT OF NET ASSETS (UNAUDITED)
- ---------
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (96.6%)
(UNLESS OTHERWISE NOTED)
- ---------------------------------------------------------------------------
ARGENTINA (0.7%)
AUTOMOBILES
CIADEA 1 U.S.$ --@
----------------
TELECOMMUNICATIONS--INTEGRATED
Telecom Argentina ADR 72,969 1,947
----------------
1,947
----------------
- ---------------------------------------------------------------------------
BRAZIL (8.4%)
BANKING
Banco Nacional (Preferred) 61,598,720 2
Unibanco (Preferred) GDR 152,140 2,691
----------------
2,693
----------------
BEVERAGES & TOBACCO
Brahma (Preferred) 1,557,108 933
----------------
ENERGY SOURCES
Petrobras (Preferred) 14,428,763 2,195
(a)Petrobras (Preferred) ADR 7,470 115
----------------
2,310
----------------
FOOD & HOUSEHOLD PRODUCTS
Pao de Acucar (Preferred) 6,460,000 129
(a)Pao de Acucar (Preferred) ADR 8,110 161
----------------
290
----------------
MERCHANDISING
Lojas Arapua (Preferred) 30,412,000 --@
(a)Lojas Arapua (Preferred) ADR 31,540 --@
----------------
--@
----------------
METALS--STEEL
CVRD (Preferred) 'A' 76,263 1,609
CVRD (Preferred) ADR 78,609 1,660
Usiminas (Preferred) 'A' 79,200 260
Usiminas (Preferred) ADR 13,735 46
----------------
3,575
----------------
TELECOMMUNICATIONS--INTEGRATED
Celular CRT (Preferred) 9,425,376 1,031
CRT 3,972,249 435
CRT (Preferred) 'A' 9,425,376 2,116
Telebras Holders (Preferred) ADR 3,096 232
Tele Centro-Sul (Preferred) 97,923,445 1,091
Tele Centro-Sul ADR 11,122 617
Tele Norte-Leste (Preferred) 31,599,945 504
Tele Norte-Leste (Preferred) ADR 59,057 915
Telesp (Preferred) 16,880,945 261
Telesp ADR 18,890 298
----------------
7,500
----------------
TELECOMMUNICATIONS--LONG DISTANCE
Embratel (Preferred) 23,293,295 267
Embratel ADR 13,867 158
----------------
425
----------------
TELECOMMUNICATIONS--WIRELESS
Tele Celular Sul (Preferred) 116,870,345 222
Tele Celular Sul ADR 11,737 U.S.$ 222
Tele Centro Oeste Celular
Participacoes SA 5,994,678 7
Tele Nordeste Celular (Preferred) 76,067,945 92
Tele Nordeste Celular ADR 2,340 53
Tele Sudeste Celular (Preferred) 115,362,555 507
Tele Sudeste Celular ADR 25,455 547
Telemig Celular (Preferred) 142,521,545 209
Telemig Celular ADR 3,470 102
Telerj Celular (Preferred) 'B' 3,756,000 72
Telesp Celular (Preferred) 78,673,045 799
Telesp Celular (Preferred) 'B' 10,639,001 565
Telesp Celular ADR 42,367 1,107
----------------
4,504
----------------
TEXTILES & APPAREL
Coteminas 2,200,500 80
(a)Coteminas ADR 23,460 43
----------------
123
----------------
UTILITIES--ELECTRICAL & GAS
Cemig (Preferred) 58,212, 527 894
Cemig (Preferred) ADR 37,013 565
(a)Cemig (Preferred) ADR 9,208 140
----------------
1,599
----------------
23,952
----------------
- ---------------------------------------------------------------------------
CHILE (0.5%)
BEVERAGES & TOBACCO
CCU ADR 19,008 437
----------------
MERCHANDISING
Santa Isabel ADR 8,598 66
----------------
UTILITIES -- ELECTRICAL & GAS
Endesa ADR 26,945 350
Enersis ADR 32,850 686
----------------
1,036
----------------
1,539
----------------
- ---------------------------------------------------------------------------
CHINA (0.3%)
ENERGY SOURCES
Yanzhou Coal Mining Co., 28,730 544
Ltd. ADR
Zhenhai Refining & Chemical Co., 1,151,400 270
Ltd. 'H' ----------------
814
----------------
- ---------------------------------------------------------------------------
COLOMBIA (0.0%)
BANKING
Bancolombia (Preferred) 6,249 7
----------------
- ---------------------------------------------------------------------------
CZECH REPUBLIC (0.6%)
TELECOMMUNICATIONS--INTEGRATED
SPT Telecom 94,776 1,442
----------------
- ---------------------------------------------------------------------------
7
<PAGE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------
<S> <C> <C>
CZECH REPUBLIC (CONTINUED)
TELECOMMUNICATIONS--INTEGRATED (CONTINUED)
SPT Telecom GDR 27,650 U.S.$ 418
----------------
1,860
----------------
- ---------------------------------------------------------------------------
EGYPT (0.8%)
BEVERAGES & TOBACCO
Al-Ahram Beverages Co. GDR 16,852 504
Eastern Tobacco 14,267 330
----------------
834
----------------
BUILDING MATERIALS & COMPONENTS
Industrial & Engineering
Enterprises Co. 10,516 92
----------------
TELECOMMUNICATIONS--WIRELESS
Egyptian Company for Mobile
Services 42,991 1,007
----------------
UTILITIES--ELECTRICAL & GAS
Egypt Gas Co. 6,100 228
----------------
2,161
----------------
- ---------------------------------------------------------------------------
GREECE (2.2%)
BANKING
Commercial Bank of Greece 1,563 144
----------------
TELECOMMUNICATIONS--INTEGRATED
Hellenic Telecommunication
Organization (OTE) 147,981 3,450
Hellenic Telecommunication
Organization (OTE) ADR 233,209 2,609
----------------
6,059
----------------
6,203
----------------
- ---------------------------------------------------------------------------
HONG KONG (1.2%)
APPLIANCES & HOUSEHOLD DURABLES
Guangdong Kelon
Electrical Holdings Co.
Ltd. 151,000 152
----------------
DATA PROCESSING & REPRODUCTION
China.Com Corp, Class A 5,600 364
----------------
ELECTRICAL & ELECTRONICS
Great Wall Technology Co., Ltd. 1,942,500 1,251
----------------
ELECTRONIC COMPONENTS, INSTRUMENTS
Legend Holdings Ltd. 334,000 318
----------------
TELECOMMUNICATIONS--WIRELESS
China Telecom Ltd. 220,000 678
----------------
TEXTILES & APPAREL
YUE Yuen Industrial Holdings 267,000 670
----------------
3,433
----------------
- ---------------------------------------------------------------------------
HUNGARY (0.9%)
BANKING
OTP Bank Rt. 14,728 651
----------------
TELECOMMUNICATIONS--INTEGRATED
Matav Rt. 64,528 354
Matav Rt. ADR 54,455 1,484
----------------
1,838
----------------
2,489
----------------
- ---------------------------------------------------------------------------
INDIA (11.7%)
AUTOMOBILES
Hero Honda Motors Ltd. 108,400 U.S.$ 3,159
Tata Engineering & Locomotive
Co. Ltd. 218,729 1,356
----------------
4,515
----------------
BANKING
State Bank of India Ltd. 50 -- @
State Bank of India Ltd. GDR 3,650 18
----------------
18
----------------
BEVERAGES & TOBACCO
ITC Ltd. 68,902 1,300
Tata Tea Ltd. 47,850 664
----------------
1,964
----------------
BROADCASTING & PUBLISHING
Zee Telefilms Ltd. 37,250 3,822
----------------
BUILDING MATERIALS & COMPONENTS
Gujarat Ambuja Cements Ltd. 52,000 588
----------------
CHEMICALS
Reliance Industries Ltd. 67,349 366
----------------
DATA PROCESSING & REPRODUCTION
Infosys Technology Ltd. 50,050 8,200
NIIT Ltd. 26,000 1,686
Satyam Computer Services Ltd. 63,370 1,638
----------------
11,524
----------------
ELECTRICAL & ELECTRONICS
Bharat Heavy Electricals
Ltd. 369,500 2,315
Digital Equipment (India) Ltd. 11,000 187
----------------
2,502
----------------
FINANCIAL SERVICES
Housing Development Finance Corp.,
Ltd. 95,610 630
----------------
FOOD & HOUSEHOLD PRODUCTS
Hindustan Lever Ltd. 38,400 2,257
----------------
HEALTH & PERSONAL CARE
Dabur India Ltd. 13,000 346
----------------
INDUSTRIAL COMPONENTS
Apollo Tyres Ltd. 8,450 45
----------------
MACHINERY & ENGINEERING
Larsen & Toubro Ltd. 117,130 984
----------------
MULTI-INDUSTRY
(b)Morgan Stanley Dean Witter Growth
Fund 6,881,800 1,603
----------------
TELECOMMUNICATIONS--INTEGRATED
Videsh Sanchar Nigam Ltd. GDR 21,800 272
----------------
TRANSPORTATION--ROAD & RAIL
Container Corp. of India
Ltd. 262,600 1,868
----------------
33,304
----------------
- ---------------------------------------------------------------------------
8
<PAGE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------
<S> <C> <C>
INDONESIA (3.0%)
BEVERAGES & TOBACCO
Gudang Garam 1,230,960 U.S.$ 2,494
----------------
BUILDING MATERIALS & COMPONENTS
Semen Gresik 604,700 967
----------------
FOOD & HOUSEHOLD PRODUCTS
Indofood Sukses Makmur 777,000 741
----------------
FOREST PRODUCTS & PAPER
Asia Pulp & Paper Co., Ltd. ADR 257,625 1,513
Indah Kait Pulp & Paper 1,460,805 523
----------------
2,036
----------------
TELECOMMUNICATIONS--INTEGRATED
Telekomunikasi Indonesia ADR 324,864 2,254
----------------
8,492
----------------
- ---------------------------------------------------------------------------
ISRAEL (4.3%)
BANKING
Bank Hapoalim Ltd. 206,200 507
Bank Leumi Le-Israel 313,800 546
----------------
1,053
----------------
ELECTRICAL & ELECTRONICS
Check Point Software
Technologies 14,910 1,259
Comverse Technology, Inc. 13,250 1,250
DSP Communications, Inc. 14,320 272
ECI Telecommunications Ltd. 87,272 2,155
Elbit Systems Ltd. 1
Galileo Technology Ltd. 21,920 548
Gilat Satellite Networks Ltd. 53,770 2,883
Nice Systems Ltd. 4,944 129
Nice Systems Ltd. ADR 19,122 492
----------------
8,988
----------------
ELECTRONIC COMPONENTS, INSTRUMENTS
DSP Group, Inc. 14,840 592
Orbotech Ltd. 14,115 873
----------------
1,465
----------------
TELECOMMUNICATIONS--INTEGRATED
Amdocs Ltd. 44,110 926
----------------
12,432
----------------
- ---------------------------------------------------------------------------
MALAYSIA (1.4%)
BANKING
Commerce Asset Holding Bhd 104,000 185
Malayan Banking Bhd 279,600 868
Public Bank Bhd 718,000 586
----------------
1,639
----------------
BEVERAGES & TOBACCO
Rothmans of Pall Mall Bhd 139,200 850
----------------
FOOD & HOUSEHOLD PRODUCTS
Nestle Bhd 109,000 381
----------------
MULTI-INDUSTRY
Sime Darby Bhd 83,000 96
----------------
TELECOMMUNICATIONS--INTEGRATED
Telekom Malaysia Bhd 405,000 1,050
----------------
4,016
----------------
- ---------------------------------------------------------------------------
MEXICO (11.0%)
BANKING
Banacci 'L' 45,447 U.S.$ 68
Banamex 'O' 702,757 1,264
(a)Bancomer 'B' ADR 64,825 292
Bancomer 'O' 1,885,881 424
----------------
2,048
----------------
BEVERAGES & TOBACCO
FEMSA 982,865 3,054
FEMSA ADR 51,596 1,616
----------------
4,670
----------------
BROADCASTING & PUBLISHING
Grupo Televisa GDR 163,509 6,530
----------------
BUILDING MATERIALS & COMPONENTS
Cemex SA 509,934 2,455
Cemex SA ADR 143,766 3,468
----------------
5,923
----------------
HEALTH & PERSONAL CARE
Kimberly 'A' 303,688 1,072
----------------
MERCHANDISING
Cifra 'C' 217,433 336
Cifra 'V' 35,159 55
Cifra 'V' ADR 38,972 613
----------------
1,004
----------------
MULTI-INDUSTRY
ALFA 'A' 172,475 719
Grupo Carso 'A1' 169,674 708
----------------
1,427
----------------
TELECOMMUNICATIONS--INTEGRATED
Telmex 'L' ADR 123,634 8,809
----------------
31,483
----------------
- ---------------------------------------------------------------------------
PAKISTAN (0.5%)
ENERGY SOURCES
Pakistan State Oil Co.,
Ltd. 200,301 504
----------------
TELECOMMUNICATIONS--INTEGRATED
Pakistan Telecommunications
Co., Ltd. 2,673,200 1,056
----------------
1,560
----------------
- ---------------------------------------------------------------------------
PHILIPPINES (0.8%)
BEVERAGES & TOBACCO
San Miguel Corp. 'B' 661,936 1,003
----------------
REAL ESTATE
SM Prime Holdings, Inc.
'B' 3,560,080 601
----------------
UTILITIES--ELECTRICAL & GAS
Manila Electric Co. 'B' 222,040 641
----------------
2,245
----------------
- ---------------------------------------------------------------------------
9
<PAGE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------
<S> <C> <C>
POLAND (1.7%)
BANKING
Powszechny Bank Kredytowy 9,230 U.S.$ 156
Powszechny Bank Kredytowy 'C' 1,743 28
Wielkopolski Bank Kredytowy 31,287 165
----------------
349
----------------
CHEMICALS
Eastbridge 33,600 2,259
----------------
DATA PROCESSING & REPRODUCTION
Prokom GDR 21,845 209
----------------
FOOD & HOUSEHOLD PRODUCTS
Agros Holdings 'C' 1,182 5
----------------
TELECOMMUNICATIONS -- INTEGRATED
Telekomunikacja Polska GDR 318,670 1,569
----------------
WHOLESALE & INTERNATIONAL TRADE
Elektrim 44,487 412
----------------
4,803
----------------
- ---------------------------------------------------------------------------
RUSSIA (1.9%)
BROADCASTING & PUBLISHING
Storyfirst Communications,
Inc. 'C' (Preferred) 270 67
Storyfirst Communications, Inc.
'D' (Preferred) 720 180
Storyfirst Communications, Inc.
'E' (Preferred) 780 195
StoryFirst Communications, Inc.
'F' (Preferred) 139 70
----------------
512
----------------
ENERGY SOURCES
LUKoil Holdings ADR 67,562 1,841
Surgutneftegaz ADR 229,147 1,532
----------------
3,373
----------------
FOREST PRODUCTS & PAPER
Alliance Cellulose Ltd. 'B' 156,075 248
----------------
TELECOMMUNICATIONS--LONG DISTANCE
Rostelecom ADR 34,500 160
----------------
TELECOMMUNICATIONS--WIRELESS
Russian Telecom
Development Corp. 176,000 419
Vimpel-Communications ADR 12,190 155
----------------
574
----------------
UTILITIES--ELECTRICAL & GAS
Unified Energy Systems ADR 11,000 58
Unified Energy Systems GDR 95,530 501
----------------
559
----------------
5,426
----------------
- ---------------------------------------------------------------------------
SINGAPORE (0.2%)
ELECTRICAL & ELECTRONICS
Natsteel Electronics Ltd. 70,000 U.S.$ 262
----------------
ELECTRONIC COMPONENTS, INSTRUMENTS
Venture Manufacturing Ltd. 33,000 287
----------------
549
----------------
- ---------------------------------------------------------------------------
SOUTH AFRICA (6.7%)
BANKING
Nedcor Ltd. 72,109 1,413
----------------
BEVERAGES & TOBACCO
Rembrandt Group Ltd. 121,165 924
South African Breweries plc 192,680 1,646
----------------
2,570
----------------
BUSINESS & PUBLIC SERVICES
Educor 365,634 215
----------------
CHEMICALS
SASOL Ltd. 49,100 378
----------------
ELECTRICAL & ELECTRONICS
Comparex Holdings Ltd. 45,870 308
Dimensions Data Holdings Ltd. 75,090 298
----------------
606
----------------
FINANCIAL SERVICES
ABSA Group Ltd. 322,358 1,262
B.O.E. Corp. Ltd. 'N' 2,079,976 1,178
FirstRand Ltd. 1,396,660 1,419
----------------
3,859
----------------
GOLD MINES
AngloGold Ltd. 5,450 343
----------------
INSURANCE
New Africa Investments
Ltd. (Preferred) 'N' 977,910 391
----------------
MERCHANDISING
Ellerine Holdings Ltd. 152,380 593
----------------
METALS--NON FERROUS
Anglo American plc, ADR 36,840 977
Billiton plc 291,200 1,208
----------------
2,185
----------------
MISC. MATERIALS & COMMODITIES
Anglo American plc 9 1
Billiton plc 157,900 662
De Beers 105,550 2,901
De Beers ADR 13,200 356
----------------
3,920
----------------
MULTI-INDUSTRY
Bidvest Group Ltd. 383,182 2,553
(b)Morgan Stanley Dean Witter Africa
Investment Fund, Inc. 9,670 91
----------------
2,644
----------------
19,117
----------------
- ---------------------------------------------------------------------------
10
<PAGE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------
<S> <C> <C>
SOUTH KOREA (15.2%)
APPLIANCES & HOUSEHOLD DURABLES
L.G. Electronics 43,870 U.S.$ 1,471
Samsung Electronics Co. 113,182 18,329
----------------
19,800
----------------
BANKING
Hana Bank 59,800 443
Hanvit Bank 248,100 928
Hanvit Bank GDR 95,050 689
Housing & Commercial Bank 35,140 679
Kookmin Bank 99,680 1,249
----------------
3,988
----------------
CHEMICALS
L.G. Chemical Ltd. 30,600 888
----------------
DATA PROCESSING & REPRODUCTION
Trigem Computer Inc. 34,243 2,350
----------------
ELECTRICAL & ELECTRONICS
Samsung Electro-Mechanics Co. 12,287 626
----------------
FINANCIAL SERVICES
Daewoo Securities Co. 57,037 842
Good Morning Securities Co. 178,180 1,025
----------------
1,867
----------------
METALS--STEEL
Pohang Iron & Steel Co., Ltd. 17,150 1,966
Pohang Iron & Steel Co., Ltd. ADR 8,700 272
----------------
2,238
----------------
MISC. MATERIALS & COMMODITIES
Hankuk Glass Industry Co., Ltd. 23,420 449
----------------
TELECOMMUNICATIONS -- INTEGRATED
Korea Telecom Corp. 27,700 1,710
Korea Telecom Corp. ADR 115,500 4,274
----------------
5,984
----------------
TELECOMMUNICATIONS -- WIRELESS
SK Telecom Co., Ltd. 1,067 987
SK Telecom Co., Ltd. ADR 65,935 680
----------------
1,667
----------------
UTILITIES -- ELECTRICAL & GAS
Korea Electric Power
Corp. ADR 228,904 3,677
----------------
43,534
----------------
- ---------------------------------------------------------------------------
TAIWAN(14.7%)
BANKING
Bank Sinopac 41,839 22
Chinatrust Commercial Bank 906,240 782
E. Sun Commercial Bank 100,620 39
First Commercial Bank 274,000 358
International Commercial Bank of 887,700 867
China
Taishin International Bank 822,120 456
United World Chinese Commercial
Bank 22,920 28
----------------
2,552
----------------
CHEMICALS
Formosa Plastics Corp. 393,030 761
- ---------------------------------------------------------------------------
Nan Ya Plastic Corp. 534,460 U.S.$ 850
----------------
1,611
----------------
DATA PROCESSING & REPRODUCTION
Quanta Computer, Inc. 67,678 563
----------------
ELECTRICAL & ELECTRONICS
Acer, Inc. 533,300 966
Acer, Inc. GDR 30,000 545
Acer Peripherals, Inc. 212,000 521
Silicon Integrated Systems Corp. 145,000 525
Siliconware Precision Industries 929,874 1,552
Co.
Winbond Electronics Corp. 163,000 285
----------------
4,394
----------------
ELECTRONIC COMPONENTS, INSTRUMENTS
Advanced Semiconductor
Engineering, Inc. 482,257 1,375
ASE Test Ltd. 10,400 252
Asustek Computer, Inc. 427,679 4,257
Compal Electronics, Inc. 402,021 1,273
Compeq Manufacturing Co., Ltd. 329,000 1,554
Hon Hai Precision Industry 585,720 3,837
Ritek, Inc. 43,000 288
Taiwan Semiconductor Co. 2,275,430 9,568
United Microelectronics Corp.
Ltd. 1,879,000 4,379
----------------
26,783
----------------
FINANCIAL SERVICES
China Development Corp. 391,400 594
----------------
INSURANCE
Cathay Life Insurance Co.
Ltd. 230,200 595
----------------
MERCHANDISING
President Chain Store
Corp. 186,763 529
----------------
METALS--STEEL
China Steel Corp. 2,063,600 1,677
----------------
TEXTILES & APPAREL
Far East Textile Ltd. 1,467,600 2,085
----------------
TRANSPORTATION--SHIPPING
Evergreen Marine Corp. 600,000 574
----------------
41,957
----------------
- ---------------------------------------------------------------------------
THAILAND (1.9%)
BANKING
Siam Commercial Bank
Public Co., Ltd.
(Preferred) 247,600 222
- ---------------------------------------------------------------------------
11
<PAGE>
<CAPTION>
VALUE
SHARES (000)
- ----------------------------------------------------------------------------
<S> <C> <C>
THAILAND (CONTINUED)
BANKING (CONTINUED)
Thai Farmers Bank Ltd. (Foreign) 230,900 U.S.$ 272
-------------
494
-------------
BROADCASTING & PUBLISHING
BEC World Public Co.,
Ltd. (Foreign) 145,400 788
-------------
BUILDING MATERIALS & COMPONENTS
Siam City Cement Public
Co., Ltd. (Foreign) 338,233 1,041
-------------
ELECTRICAL & ELECTRONICS
Delta Electronics Public
Co., Ltd. (Foreign) 129,840 1,154
Shinawatra Computer Public Co.,
Ltd. (Foreign) 127,000 524
-------------
1,678
-------------
TELECOMMUNICATIONS -- WIRELESS
Advanced Info. Services
Public Co., Ltd.
(Foreign) 117,700 1,345
-------------
5,346
-------------
- ---------------------------------------------------------------------------
TURKEY (6.0%)
APPLIANCES & HOUSEHOLD DURABLES
Vestel Elektronik Sanayi
Ve Ticaret AS 8,079,292 981
-------------
BANKING
(a)Akbank TAS 20,940 62
Akbank TAS 83,255,550 1,245
Turkiye Garanti Bankasi 238,123,600 1,729
Turkiye Is Bankasi 104,094,800 1,918
Yapi Ve Kredi Bankasi 249,284,661 3,404
-------------
8,358
-------------
BEVERAGES & TOBACCO
Ege Biracilik Ve Malt
Sanayii 26,451,000 860
Erciyas Biracilik 4,524,000 100
-------------
960
-------------
BUSINESS & PUBLIC SERVICES
Dogan Holding 152,268,000 2,178
-------------
ENERGY SOURCES
Tupras-Turkiye Petrol
Rafinerileri AS 10,054,000 643
-------------
FINANCIAL SERVICES
Dogan Yayin Holding 70,298,000 282
Sabanci Holdings 56,574,000 1,471
-------------
1,753
-------------
MERCHANDISING
Migros Turk TAS 1,290,000 559
-------------
METALS--STEEL
Eregli Demir Ve Celik Fabrikalari
TAS 50,566,000 1,151
-------------
- ---------------------------------------------------------------------------
MULTI-INDUSTRY
Koc Holding 5,433,000 U.S.$ 524
-------------
17,107
-------------
- ---------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost U.S.$256,153) 275,776
-------------
- ---------------------------------------------------------------------------
<CAPTION>
NO. OF
RIGHTS
- ----------------------------------------------------------------------------
<S> <C> <C>
RIGHTS(0.1%)
- ----------------------------------------------------------------------------
BRAZIL (0.0%)
FOOD & HOUSEHOLD PRODUCTS
Pao de Acucar 1,616,579 --@
-------------
- ---------------------------------------------------------------------------
TAIWAN (0.0%)
BANKING
Taishin International Bank 1,151,000 46
ELECTRICAL & ELECTRONICS
Acer, Inc. 212,000 16
-------------
62
-------------
- ---------------------------------------------------------------------------
THAILAND(0.1%)
BANKING
Thai Farmers Bank Ltd. 230,900 159
-------------
TOTAL RIGHTS
(Cost U.S.$290) 221
-------------
<CAPTION>
NO. OF
WARRANTS
- ---------------------------------------------------------------------------
<S> <C> <C>
WARRANTS (0.2%)
- ---------------------------------------------------------------------------
THAILAND(0.2%)
BANKING
Siam Commercial Bank Public Co.
Ltd. (Foreign), expiring 6/22/04 1,642,000 471
Siam Commercial Bank Public Co. Ltd.,
expiring 5/10/02 280,333 70
-------------
(Cost U.S.$ --@) 541
-------------
<CAPTION>
NO. OF
UNITS
- ---------------------------------------------------------------------------
<S> <C> <C>
UNITS (0.1%)
- ---------------------------------------------------------------------------
RUSSIA (0.1%)
BROADCASTING & PUBLISHING
Storyfirst Communications, Inc.,
First Section, Tranche 1
(Convertible) 604 151
- ---------------------------------------------------------------------------
12
<PAGE>
<CAPTION>
NO. OF VALUE
UNITS (000)
- ----------------------------------------------------------------------------
<S> <C> <C>
RUSSIA (CONTINUED)
BROADCASTING & PUBLISHING (CONTINUED)
Storyfirst Communications, Inc., First 35 U.S.$ 9
Section, Tranche I (Convertible)
Storyfirst Communications, Inc., Second
Section, Tranche II (Convertible) 152 38
Storyfirst Communications, Inc., Tranche
IV (Convertible) 207 51
-------------
(Cost U.S.$1,192) 249
-------------
- ---------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
(000)
- ---------------------------------------------------------------------------
<S> <C> <C>
DEBT INSTRUMENTS (0.2%)
- ---------------------------------------------------------------------------
INDIA (0.2%)
MULTI-INDUSTRY
(c)DCM Shriram Industries Ltd. INR
9.90%, 2/21/02 335 234
DCM Shriram Industries Ltd.
(Convertible)
7.50%, 2/21/02 330 174
Shri Ishar Alloy Steels Ltd.
15.00%, 4/21/01 581 103
-------------
(Cost U.S.$1,495) 511
-------------
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (3.3%)
- ---------------------------------------------------------------------------
UNITED STATES (3.3%)
REPURCHASE AGREEMENT
Chase Securities, Inc., 5.05%,
dated 9/30/99, due
10/1/99, to be repurchased
at U.S.$9,283 collateralized
by U.S.$8,680 United States
Treasury Bonds, 7.125%,
due 2/15/23, valued at
U.S.$9,510
(Cost U.S.$9,282) U.S .$ 9,282 9,282
--------------
- ----------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
- ---------------------------------------------------------------------------
<S> <C> <C>
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (0.9%)
Brazil Real BRL 252 131
Egyptian Pound EGP 123 36
Greek Drachma GDR 65,693 213
Hungarian Forint HUF 1,885 8
Indian Rupee INR 66,811 1,533
Indonesian Rupiah IDR 334,255 40
Mexican Peso MXP 261 28
Pakistani Rupee PKR 3,988 75
Philippine Peso PHP 1,687 41
Polish Zloty PLZ 24 6
South African Rand ZAR 1,864 311
South Korean Won KRW 243,375 200
Taiwan Dollar TWD 1,968 62
-------------
(Cost U.S.$2,688) 2,684
-------------
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS (101.4%)
(Cost U.S.$271,100) 289,264
-------------
- ---------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-1.4%)
Other Assets U.S.$ 15,052
Liabilities (18,979) (3,927)
-------------- --------------
- ---------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 20,494,744 issued and
outstanding U.S.$0.01 par value shares
(100,000,000 shares authorized) U.S. $285,337
--------------
- ---------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S. $ 13.92
-------------
- ---------------------------------------------------------------------------
</TABLE>
(a) - 144A Security-certain conditions for public sale may exist.
(b) - The Fund is advised by an affiliate.
(c) - Variable/floating rate security-rate disclosed is as of September 30,
1999.
@ - Amount is less than U.S.$500.
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
13
