<PAGE>
--------------------------------------------------------------------------------
THE
LATIN AMERICAN
DISCOVERY
FUND, INC.
--------------------------------------------------------------------------------
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
MORGAN STANLEY DEAN WITTER INVESTMENT
MANAGEMENT INC.
INVESTMENT ADVISER
THE LATIN AMERICAN DISCOVERY FUND, INC.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Barton M. Biggs
CHAIRMAN OF THE BOARD
OF DIRECTORS
Harold J. Schaaff, Jr.
PRESIDENT AND DIRECTOR
John D. Barrett II
DIRECTOR
Gerard E. Jones
DIRECTOR
Graham E. Jones
DIRECTOR
John A. Levin
DIRECTOR
Andrew McNally IV
DIRECTOR
William G. Morton, Jr.
DIRECTOR
Samuel T. Reeves
DIRECTOR
Fergus Reid
DIRECTOR
Frederick O. Robertshaw
DIRECTOR
Stefanie V. Chang
VICE PRESIDENT
Arthur J. Lev
VICE PRESIDENT
Joseph P. Stadler
VICE PRESIDENT
Mary E. Mullin
SECRETARY
Belinda A. Brady
TREASURER
Robin L. Conkey
ASSISTANT TREASURER
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INVESTMENT ADVISER
Morgan Stanley Dean Witter Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020
--------------------------------------------------------------------------------
U.S. ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
--------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
--------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT
Boston Equiserve
Investor Relations Department
P.O. Box 644
Boston, Massachusetts 02102-0644
(800) 730-6001
--------------------------------------------------------------------------------
LEGAL COUNSEL
Clifford Chance Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
--------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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/im.
<PAGE>
Letter to Shareholders
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
For the nine months ended September 30, 2000, The Latin American Discovery Fund,
Inc. (the "Fund") had a total return, based on net asset value per share, of
-5.67% compared with -9.16% for the Morgan Stanley Capital International (MSCI)
Emerging Markets Free Latin America Index (the "Index"). For the period from
commencement of operations on June 23, 1992 through September 30, 2000, the
Fund's total return, based on net asset value per share, was 197.62% compared
with 107.52% for the Index. On September 30, 2000, the closing price of the
Fund's shares on the New York Stock Exchange was $10 1/2 , representing a 21.1%
discount to the Fund's net asset value per share.
Latin American markets advanced during the beginning of the year as investors
rewarded continued macroeconomic improvements in the region and steps towards
increasing fiscal responsibility. However, many first quarter gains reversed
during the second quarter, amidst the backdrop of increasing volatility in the
developed markets. Latin American markets fell as the region's positive economic
fundamentals were overshadowed by investor concerns over higher U.S. interest
rates and tighter global liquidity. The markets rebounded towards the end of the
second quarter of 2000 as good U.S. economic numbers allayed investor concerns
surrounding inflation and necessary interest rate hikes.
During the third quarter, however, Latin American markets fell, driven in part
by uncertainty over the path of U.S. economic growth and increased volatility in
the NASDAQ. Latin American monetary policy diverged during the third quarter, as
the trend in interest rates diverged -- Mexican market-driven interest rates
rose while central banks cut rates in Brazil and Chile. Political highlights
included Vicente Fox's victory in Mexico's presidential election and President
Fujimori's call for new elections in Peru. Overall, GDP growth continued to
surprise on the upside. The third quarter was also characterized by a supply of
new equity issuance in Latin America, notably in Brazil and Mexico.
Brazilian equities declined during the third quarter of 2000 despite a
supportive macroeconomic environment. In July, Brazil's Central Bank's Monetary
Policy Committee (COPOM) reduced the index interest rate by 100 basis points to
16.5%, the lowest level since before the launch of the Real Plan in 1994. The
COPOM left interest rates unchanged at its August and September meetings,
upholding its neutral bias. We believe there is scope for interest rate cuts in
the near future. Brazilian equities were buoyed during August by the successful
completion of a major external debt swap transaction and the possibility of a
Moody's rating upgrade of Brazil's long-term foreign currency debt. As a result
of the Morgan Stanley Capital International (MSCI) quarterly structural changes
announced mid-August, Brazil's weight increased in the MSCI Latin America
indices effective August 31. Positive macroeconomic trends continued to
emerge--growth remains buoyant, inflation was subdued and fiscal performance was
well within IMF targets. We expect to continue to overweight Brazil, which we
believe offers attractive bottom-up investment opportunities coupled with a
supportive macroeconomic backdrop.
Mexican equities have also fallen this year, despite high oil prices in recent
months. The boost in petro-dollars has led to significant capital inflows and a
stronger peso. Mexican financial markets and the peso rallied when Vicente Fox
of the opposition PAN party was elected President on July 2, 2000. The Mexican
government positively surprised the market in August when it announced its
intention to prepay its entire stock of IMF debt. Continued signs of robust
consumer recovery emerged, such as a second quarter surge in consumer spending
and increased gross fixed investment. Concerns over possible economic
overheating were allayed by lower-than-expected industrial production in July
and a higher-than-expected August jobless rate. We expect to maintain our
overweight stance in Mexican equities, as we believe they should fare well
amidst a supportive oil price and continued healthy U.S. economic performance.
Argentine equities have been weighed down by sluggish economic growth. Although
industrial production numbers toward the end of the third quarter suggest that
Argentina's recession may have bottomed, the Ministry of Economy announced that
GDP growth for 2000 would likely be lower than the already revised forecast of
2.0%. Our underweight stance in this market is based on lackluster growth
prospects in the near term, and we found more appealing risk-reward profiles at
both the stock and country levels in other Latin American markets.
The government's removal of a one-year holding period on foreign capital and new
tax incentives failed to boost the Chilean market this year. Equities gained
some support during August when the government proposed to Congress the
elimination of the capital gains tax applied to non-resident investors and there
was a surprise decision by the Central Bank to lower interest rates by 50 basis
points, from 5.5% to 5.0%. The market, however, has fallen 11.7% for the
year-to-date. We remain underweight Chile as investment opportunities are
limited and valuations are expensive on a regional basis.
Strong oil prices have helped Venezuelan equities outperform the other Latin
markets. As anticipated, President Hugo Chavez was re-elected on July 30, 2000.
Capital flight and stagnant growth continued to weaken market sentiment. We find
it difficult to be enthusiastic about
2
<PAGE>
present investment opportunities in Venezuela and maintain an underweight
position in this market.
Latin American equities have fallen by 9.2% this year
through the end of the third quarter, outperforming the other emerging markets
regions. Although macroeconomic developments within Latin America are
encouraging, such as Brazil's new found fiscal discipline, global developments
continue to weigh on markets, particularly developed market volatility. We
continue to believe equities in Brazil and Mexico present attractive investment
prospects enhanced by positive macroeconomic backdrops. Although we are watching
for indications of sustainable growth in Argentina, we expect to continue to
underweight this and the other Latin countries in the near term.
On September 15, 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 month period ended
September 30, 2000, the Fund repurchased 563,400 shares or 4.79% of its Common
Stock at an average price per share of $10.67, excluding $28,000 in commissions
paid, and an average discount of 21.34% from net asset value per share. For the
year ended December 31, 1999, the Fund repurchased 437,200 shares or 3.59% of
its Common Stock at an average price per share of $7.94, excluding $22,000 in
commissions paid, and an average discount of 15.58% from net asset value per
share. Since the inception of the program, the Fund has repurchased 1,543,400
shares or 12.12% of its Common Stock at an average price per share of $8.37,
excluding $77,000 in commissions paid, and an average discount of 19.85% 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.
Sincerely,
/s/Harold J. Schaaff, Jr.
Harold J. Schaaff, Jr.
PRESIDENT AND DIRECTOR
October 2000
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.
FOREIGN INVESTING INVOLVES CERTAIN RISKS, INCLUDING CURRENCY FLUCTUATIONS AND
CONTROLS, RESTRICTIONS ON FOREIGN INVESTMENTS, LESS GOVERNMENTAL SUPERVISION AND
REGULATION, LESS LIQUIDITY AND THE POTENTIAL FOR MARKET VOLATILITY AND POLITICAL
INSTABILITY.
--------------------------------------------------------------------------------
DAILY NET ASSET AND MARKET VALUES, AS WELL AS MONTHLY PORTFOLIO INFORMATION FOR
THE FUND, ARE AVAILABLE ON OUR WEBSITE AT WWW.MSDW.COM/IM.
3
<PAGE>
The Latin American Discovery Fund, Inc.
Investment Summary as of September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
HISTORICAL TOTAL RETURN (%)
INFORMATION --------------------------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2) MCSI EMF LA INDEX (3)
----------------------- ------------------------- ---------------------
AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
----------- --------- ------------ ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
YEAR TO DATE -1.30% -- -5.67% -- -9.16% --
ONE YEAR 31.46 31.46% 33.56 33.56% 21.06 21.06%
FIVE YEAR 110.02 16.00 115.47 16.59 45.33 7.76
SINCE INCEPTION* 134.78 10.87 197.62 14.08 107.52 9.23
</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,
1992* 1993 1994 1995 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value Per Share ............ $15.23 $23.31 $17.16 $10.98 $14.77 $20.34 $ 8.19 $14.11 $13.31
Market Value Per Share ............... $13.25 $27.13 $18.25 $ 9.88 $12.50 $17.94 $ 6.19 $10.69 $10.50
Premium/(Discount) ................... -13.0% 16.4% 6.4% -10.0% -15.4% -11.8% -24.4% -24.2% -21.1%
Income Dividends ..................... -- -- $ 0.00# -- $ 0.16 -- $ 0.08 $ 0.09 $ 0.05
Capital Gains Distributions .......... -- -- $ 5.74 $ 0.45 $ 1.14 $ 0.70 $ 6.67 -- --
Fund Total Return (2) ................ 8.01% 65.36%+ -0.14% -27.61%+ 47.19% 43.06% -33.53% 73.78% -5.67%
MSCI EMF LA Index
Total Return (3) ................... 2.00% 53.92% 0.64% -12.83% 22.21% 31.64% -35.11% 58.89% -9.16%
</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 Latin
America Index is a broad based market cap weighted composite index covering
at least 60% of markets in Argentina, Brazil, Chile, Colombia, Mexico, Peru
and Venezuela. The Index takes into account local market restrictions for
specific securities or classes of shares that may be excluded from or
limited for foreign investor ownership.
* The Fund commenced operations on June 23, 1992.
# Amount is less than $0.01 per share.
+ This return excludes the effect of the rights issued in connection with the
Rights Offerings.
4
<PAGE>
The Latin American Discovery Fund, Inc.
Portfolio Summary as of September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIVERSIFICATION OF TOTAL INVESTMENTS
[PIE CHART]
<TABLE>
<S> <C>
Equity Securities (95.0%)
Short-Term Investments (5.0%)
</TABLE>
------------------------------------------------------------------------------
INDUSTRIES
[PIE CHART]
<TABLE>
<S> <C>
Diversified Telecommunication Services (28.1%)
Banks (10.4%)
Beverages (9.1%)
Electric Utilites (6.8%)
Oil & Gas (6.7%)
Metals & Mining (6.0%)
Wireless Telecommunication Services (4.8%)
Construction Materials (4.7%)
Media (4.3%)
Multiline Retail (3.9%)
Other* (15.2%)
</TABLE>
--------------------------------------------------------------------------------
COUNTRY
WEIGHTINGS
[PIE CHART]
<TABLE>
<S> <C>
Mexico (43.1%)
Brazil (41.8%)
Chile (6.9%)
United States (4.7%)
Argentina (3.5%)
Venezuela (1.5%)
Colombia (0.2%)
Other (-1.7%)
</TABLE>
--------------------------------------------------------------------------------
TEN LARGEST HOLDINGS**
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. Telmex (Mexico) 12.7%
2. Petrobras (Brazil) 6.7
3. Cemex (Mexico) 4.7
4. Grupo Televisa (Mexico) 3.7
5. FEMSA (Mexico) 3.1
6. Tele Norte-Leste (Brazil) 3.0
7. CVRD (Brazil) 2.9
8. Wal-mart de Mexico (Mexico) 2.9
9. Banacci (Mexico) 2.7
10. Eletrobras (Brazil) 2.6
----
45.0%
----
----
</TABLE>
* Other includes other industries/countries not shown separately and other
assets and liabilities.
** Excludes short-term investments.
5
<PAGE>
INVESTMENTS (UNAUDITED)
--------------
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (000)
---------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (96.7%)
(Unless otherwise noted)
---------------------------------------------------------------------------
ARGENTINA (3.5%)
BANKS
Banco Frances ADR 10,240 U.S.$ 213
Grupo Financiero Galicia ADR 14,298 214
-------------
427
-------------
BEVERAGES
Quinsa ADR 150,955 1,585
DIVERSIFIED TELECOMMUNICATION SERVICES
Telecom Argentina Stet -
France Telecom ADR 129,434 2,799
METALS & MINING
Acindar 'B' 94,805 86
Siderar 'A' 46,753 136
-------------
222
-------------
REAL ESTATE
Irsa Inversiones y
Representaciones GDR 10,240 237
-------------
5,270
-------------
---------------------------------------------------------------------------
BRAZIL (41.8%)
AEROSPACE & DEFENSE
Embraer ADR 56,750 1,759
-------------
BANKS
Banco Bradesco ADR 3,700 31
Banco Bradesco (Preferred) 246,801,099 2,043
Banco Nacional (Preferred) 95,420,000 3
Itaubanco (Preferred) 22,840,340 2,032
Unibanco (Preferred) GDR 60,813 2,007
-------------
6,116
-------------
BEVERAGES
Ambev (Preferred) 870,000 958
Ambev (Preferred) ADR 126,440 2,798
-------------
3,756
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Brasil Telecom (Preferred) 114,523,500 994
Brasil Telecom Participacoes 73,125,250 853
Brasil Telecom Participacoes ADR 5,260 306
CRT (Preferred) 'A' 5,271,866 2,045
Embratel ADR 56,795 1,051
Embratel (Preferred) 104,317,000 1,925
Tele Norte-Leste (Preferred) 71,910,138 1,639
Tele Norte-Leste (Preferred) ADR 120,576 2,758
Telebras (Preferred) ADR 23,400 1,852
-------------
13,423
-------------
ELECTRIC UTILITIES
Cemig (Preferred) 35,240,003 584
Cemig ADR 60,393 1,002
Copel (Preferred) ADR 16 -- @
Copel (Preferred) 'B' 209,619,500 1,877
Eletrobras 68,805,950 1,340
---------------------------------------------------------------------------
ELECTRIC UTILITIES (CONTINUED)
Eletrobras ADR 24,430 U.S.$ 238
Eletrobras (Preferred) ADR 86,570 880
Eletrobras (Preferred) 'B' 68,146,880 1,386
-------------
7,307
-------------
INDUSTRIAL CONGLOMERATES
Itau (Preferred) 1,284,010 1,303
-------------
METALS & MINING
CSN 41,121,100 1,305
CSN ADR 6,800 214
CVRD 5,000 114
CVRD (Preferred) 'A' 122,061 3,043
CVRD (Preferred) ADR 47,230 1,178
Gerdau (Preferred) 128,304,844 1,646
Usiminas ADR 1,038 6
Usiminas (Preferred) 111,200 634
-------------
8,140
-------------
MULTILINE RETAIL
Lojas Arapua (Preferred) 41,337,400 -- @
Lojas Arapua (Preferred) ADR 20,775 -- @
-------------
-- @
-------------
OIL & GAS
Petrobras 61,848 1,859
Petrobras ADR 196,700 5,913
Petrobras (Preferred) 11,655 333
Petrobras (Preferred) ADR 63,090 1,806
-------------
9,911
-------------
PAPER & FOREST PRODUCTS
Aracruz Celulose ADR 93,668 1,552
Votorantim Celulose e Papel ADR 36,990 728
-------------
2,280
-------------
REAL ESTATE
Rossi Residencial GDR 424,807 319
-------------
WATER UTILITIES
SABESP 8,204,000 792
-------------
WIRELESS TELECOMMUNICATION SERVICES
Celular CRT (Preferred) 7,685,066 2,669
Tele Leste Celular ADR 2,185 88
Tele Leste Celular (Preferred) 717,599,039 588
Tele Nordeste Celular (Preferred) 77,391,900 184
Tele Norte Celular (Preferred) 543,474,200 439
Telesp Celular ADR 75,550 2,488
Telesp Celular (Preferred) 'B' 56,481,253 742
-------------
7,198
-------------
62,304
-------------
---------------------------------------------------------------------------
CHILE (6.4%)
BANKS
Banco Edwards ADR 69,853 908
Banco Santander Chile ADR 12,700 186
Banco Santiago ADR 26,995 526
-------------
1,620
-------------
BEVERAGES
CCU ADR 59,200 1,332
-------------
---------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
---------------------------------------------------------------------------
<S> <C> <C>
CHILE (CONTINUED)
DIVERSIFIED TELECOMMUNICATION SERVICES
Telefonica CTC ADR 130,552 U.S.$ 2,268
-------------
ELECTRIC UTILITIES
Chilectra ADR 94,765 1,250
Endesa ADR 55,809 614
Enersis ADR 56,148 1,000
-------------
2,864
-------------
FOOD & DRUG RETAILING
D&S ADR 37,675 615
Santa Isabel ADR 39,375 226
-------------
841
-------------
INDUSTRIAL CONGLOMERATES
Quinenco ADR 56,020 483
-------------
INVESTMENT COMPANIES
CitiCorp. Cash Fund 16,986 38
-------------
9,446
-------------
---------------------------------------------------------------------------
COLOMBIA (0.2%)
BEVERAGES
Bavaria 96,960 307
-------------
DIVERSIFIED FINANCIALS
Valores Bavaria 76,519 52
-------------
359
---------------------------------------------------------------------------
MEXICO (43.1%)
BANKS
Banacci 'L' 645,651 2,996
Banacci 'O' 226,720 1,045
Bancomer 'O' 4,071,502 2,390
Banorte 'O' 684,441 893
-------------
7,324
-------------
BEVERAGES
FEMSA ADR 43,343 1,690
FEMSA UBD 742,119 2,886
Grupo Modelo 'C' 535,000 1,247
Panamerican Beverages, Inc. 'A' 35,600 605
Pepsi-Gemex GDR 35,400 190
-------------
6,618
-------------
CONSTRUCTION & ENGINEERING
ICA 364,718 97
ICA ADR 71,070 124
-------------
221
-------------
CONSTRUCTION MATERIALS
Cemex ADR 158,969 3,189
Cemex CPO 962,087 3,873
-------------
7,062
-------------
CONTAINERS & PACKAGING
Vitro ADR 111,592 293
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Carso Global Telecom 916,744 2,210
Telmex 'L' ADR 355,819 18,925
-------------
21,135
-------------
ENERGY EQUIPMENT & SERVICES
TAMSA ADR 44,212 741
-------------
---------------------------------------------------------------------------
FOOD PRODUCTS
Grupo Bimbo 'A' 163,732 U.S.$ 272
-------------
INDUSTRIAL CONGLOMERATES
Alfa 'A' 1,120,799 2,347
Grupo Carso 'A1' 476,245 1,415
-------------
3,762
-------------
MEDIA
CIE 188,300 912
Grupo Televisa CPO GDR 94,471 5,450
-------------
6,362
-------------
METALS & MINING
Grupo Mexico 'B' 170,610 651
-------------
MULTILINE RETAIL
Grupo Sanborns 187,350 286
Soriana 'B' 329,585 1,205
Wal-mart de Mexico ADR 11,250 235
Wal-mart de Mexico 'C' 978,227 1,936
Wal-mart de Mexico 'V' 1,010,011 2,097
-------------
5,759
-------------
PAPER & FOREST PRODUCTS
Kimberly-Clark de Mexico 'A' 726,374 1,908
-------------
TRANSPORTATION
Grupo Aeroportuario del
Sureste ADR 29,900 454
Grupo Aeroportuario del
Sureste 'B' 1,112,800 1,677
-------------
2,131
-------------
64,239
-------------
---------------------------------------------------------------------------
UNITED STATES (0.2%)
INTERNET SOFTWARE & SERVICES
StarMedia Network, Inc. 31,900 240
-------------
---------------------------------------------------------------------------
VENEZUELA (1.5%)
DIVERSIFIED TELECOMMUNICATION SERVICES
CANTV ADR 91,795 2,243
-------------
---------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost U.S.$135,842) 144,101
-------------
---------------------------------------------------------------------------
NO. OF
RIGHTS
---------------------------------------------------------------------------
RIGHTS (0.0%)
---------------------------------------------------------------------------
CHILE (0.0%)
Enersis
(Cost U.S.$--@) 56,148 3
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (5.0%)
---------------------------------------------------------------------------
<S> <C> <C> <C>
CHILE (0.5%)
REPURCHASE AGREEMENT
Pacto Citicorp, Inc., 0.70%,
dated 9/29/00, due
10/02/00 CLP 441,000 U.S.$ 782
-------------
---------------------------------------------------------------------------
UNITED STATES (4.5%)
REPURCHASE AGREEMENT
(a)Chase Securities, Inc., 6.25%
dated 9/29/00, due
10/02/00 U.S.$ 6,656 6,656
-------------
---------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(Cost U.S.$7,435) 7,438
-------------
---------------------------------------------------------------------------
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (0.2%)
Argentine Peso ARP 7 7
Brazilian Real BRL 310 168
Chilean Peso CLP 55 -- @
Mexican Peso MXP 479 51
-------------
---------------------------------------------------------------------------
TOTAL FOREIGN CURRENCY
(Cost U.S.$228) 226
-------------
---------------------------------------------------------------------------
TOTAL INVESTMENTS (101.9%)
(Cost U.S.$143,505) 151,768
-------------
---------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-1.9%)
Other Assets U.S.$ 8,408
Liabilities (11,163) (2,755)
------------------------- -------------
---------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 11,192,725 issued and
outstanding U.S.$0.01 par value shares
(100,000,000 shares authorized) U.S.$ 149,013
-------------
---------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S.$ 13.31
-------------
---------------------------------------------------------------------------
(a) -- The repurchase agreement is fully collateralized by U.S.
government and/or agency obligations based on market prices at
the date of this schedule of investments. The investment in the
repurchase agreement is through participation in a joint
account with affiliated funds.
@ -- Value is less than U.S.$500.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
---------------------------------------------------------------------------
SEPTEMBER 30, 2000 EXCHANGE RATES:
---------------------------------------------------------------------------
ARP Argentine Peso 0.999 = U.S. $1.00
BRL Brazilian Real 1.843 = U.S. $1.00
CLP Chilean Peso 563.450 = U.S. $1.00
MXP Mexican Peso 9.439 = U.S. $1.00
---------------------------------------------------------------------------
</TABLE>
8
