MERRILL LYNCH
AMERICAS INCOME
FUND, INC.
FUND LOGO
Quarterly Report
September 30, 1995
The Fund is leveraged to provide shareholders with a potentially
higher rate of return. However, leveraging may exaggerate changes in
the net asset value of the Fund's shares and in the yield on the
Fund's portfolio.
<PAGE>
Investing in emerging market securities involves a number of risk
factors and special considerations, including restrictions on
foreign investments and on repatriation of capital invested in
emerging markets, currency fluctuations, and potential price
volatility and less liquidity of securities traded in emerging
markets. In addition, there may be less publicly available
information about the issuers of securities, and such issuers may
not be subject to accounting, auditing and financial reporting
standards and requirements comparable to those to which US companies
are subject. Therefore, the Fund is designed as a long-term
investment for investors capable of assuming the risks of investing
in emerging markets. The Fund should be considered as a vehicle for
diversification and not as a complete investment program. Please
refer to the prospectus for details.
This report is not authorized for use as an offer of sale or 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.
<PAGE>
Merrill Lynch
Americas Income Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH AMERICAS INCOME FUND, INC.
The Benefits and
Risks of
Leveraging
The Fund is authorized to borrow money from banks in an amount up to
33 1/3% of the Fund's total assets (including the amount borrowed),
less all liabilities and indebtedness other than the bank borrowing.
The Fund is also authorized to borrow an additional 5% of its total
assets without regard to this limitation for temporary purposes.
Borrowings by the Fund create an opportunity for greater total
return but, at the same time, increase exposure to capital risk. For
example, leveraging may exaggerate changes in the net asset value of
Fund shares and in the yield on the Fund's portfolio. Although the
principal of such borrowings will be fixed, the Fund's assets may
change in value during the time the borrowings are outstanding.
Borrowing will create interest expenses for the Fund that can exceed
the income from the assets retained. To the extent the income
derived from securities purchased with borrowed funds exceeds the
interest the Fund will have to pay, the Fund's net income will be
greater than if borrowing were not used. Conversely, if the income
from the assets retained with borrowed funds is not sufficient to
cover the cost of borrowing, the net income of the Fund will be less
than if borrowing were not used, and therefore the amount available
for distribution to shareholders as dividends will be reduced.
<PAGE>
Officers and Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Joseph T. Monagle, Jr., Senior Vice President
Alex V. Bouzakis, Vice President
Donald C. Burke, Vice President
Paolo H. Valle, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
As expected, debt prices have recovered very quickly since the
financial crisis in Mexico at the end of last year. This was in
response to the government's emphasis on market-friendly economic
reforms. The economic and political direction in the emerging
markets continues to be very favorable, in our opinion. Therefore,
we expect improving credit fundamentals to be the driving force
behind a gradual tightening in credit spreads. For the fourth
quarter of 1995, a convincing sign of growth in the economies of
Mexico and Argentina would set the tone of the emerging markets.
A very significant recent development in the market is the debt buy-
back programs that some governments have implemented and others are
rumored to be in the process of implementing. Specifically,
Argentina has started a debt buy-back program with the proceeds of
two Eurobond issues in the amount of $1.7 billion cash value in
securities. Additionally, Venezuela and Peru have been rumored to be
buying their debt back during the previous months. Most recently,
Brazil's congress approved legislation to allow the government to
accelerate the final payments of its Brady collateral, allowing the
government to buy back Brady bonds legally.
<PAGE>
In our view, the positive interest rate environment in the United
States, Japan and Europe is supportive for emerging markets debt.
This, combined with a stronger US dollar, will help to attract
investors to emerging markets in search of higher yields.
Investment Environment
Mexico
Mexico remained relatively stable during most of the September
quarter. The tesobono crisis is now past, and the focus is on
stimulating economic growth and exports. The economy continues to
post increasing trade surpluses and inflation is declining. The
economy, while still weak, seems to have bottomed out in the
September quarter. The peso and stock market were weak during the
last week of the September quarter in response to a change in the
expectations on the growth of the economy and some political
uncertainties relating to the investigation of the Colosio
assassination.
Argentina
In Argentina, the focus also continues to be on economic growth.
High unemployment and weak tax revenues are expected to exert
pressure on the fiscal balance. We expect that the International
Monetary Fund (IMF) will agree to renegotiate targets and support
the Argentine program. Finance Minister Cavallo's strong stand on
the reform of the postal system created political friction within
the Peronist Party, resulting in speculation over his dismissal by
President Menem. This speculation caused enormous volatility in the
Argentine market during the latter half of August. Menem has since
come out in support of Cavallo and stability is slowly returning to
the markets. We believe that Cavallo will stay at least to engineer
economic growth in Argentina.
Brazil
The situation in Brazil is one of an economic slowdown, falling
inflation and an improving trade situation. The administration is
now in the process of easing credit to prevent a further slowdown in
the economy. The intervention of Banco Economico, which was
challenged by a prominent senator, resulted in a political stand-off
and brought into question the cohesiveness of the
Cardoso political bloc, which is essential for the progress of
fiscal reforms. We believe that the direction of economic reform
will not be altered. At this time, the government's fiscal
priorities are the renewal of the social emergency plan and the
administrative reform. Most recently, international reserves reached
approximately $45 billion.
<PAGE>
Venezuela
There were no substantial developments in Venezuela. The country's
fiscal situation is deteriorating at a rapid pace. The budget
deficit is expected to top 10% of gross domestic product this year.
Venezuela will be unable to finance such a deficit without external
financing and devaluing the currency. Recently, the administration
raised gasoline prices and sent Economy Minister Matos to the IMF to
negotiate a formal program. The effect of the recently raised
gasoline prices on the fiscal budget was not significant. Investors
continue to wait for the administration to launch an economic reform
package. Most probably this will happen after the local elections in
December.
In Conclusion
We thank you for your investment in Merrill Lynch Americas Income
Fund, Inc., and we look forward to updating our outlook and strategy
with you in our upcoming annual report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Paolo Valle)
Paolo Valle
Vice President and
Portfolio Manager
October 31, 1995
<PAGE>
PERFORMANCE DATA
About Fund
Performance
Since October 21, 1994, investors have been able to purchase shares
of the Fund through the Merrill Lynch Select Pricing SM System,
which offers four pricing alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 4% and bear no ongoing distribution or account maintenance
fees. Class A Shares are available only to eligible investors, as
detailed in the Fund's prospectus. If you were a Class A shareholder
prior to October 21, 1994, your Class A Shares were redesignated to
Class D Shares on October 21, 1994, which, in the case of certain
eligible investors, were simultaneously exchanged for Class A
Shares.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.50% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after 10 years.
* Class C Shares are subject to a distribution fee of 0.55% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 4% and an
account maintenance fee of 0.25% (but no distribution fee).
Performance data for the Fund's Class B and Class D Shares are
presented in the "Recent Performance Results," "Average Annual Total
Return" and "Performance Summary" tables on pages 4 and 5. Data for
Class A and Class C Shares are presented in the "Recent Performance
Results" and "Aggregate Total Return" tables on page 4.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for Class B and Class D
Shares for the 12-month and 3-month periods ended September 30, 1995
and for Class A and Class C Shares for the since inception and 3-
month periods ended September 30, 1995. All data in this table
assume imposition of the actual total expenses incurred by each
class of shares during the relevant period.
<PAGE>
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
9/30/95 6/30/95 9/30/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Americas Income Fund Class A Shares* $9.07 $8.59 $9.08 - 0.11% +5.59%
ML Americas Income Fund Class B Shares* 9.02 8.55 9.18 - 1.74 +5.50
ML Americas Income Fund Class C Shares* 9.02 8.55 9.08 - 0.66 +5.50
ML Americas Income Fund Class D Shares* 9.02 8.55 9.18 - 1.74 +5.50
ML Americas Income Fund Class A Shares--Total Return* +10.74(1) +8.44(2)
ML Americas Income Fund Class B Shares--Total Return* + 8.70(3) +8.15(4)
ML Americas Income Fund Class C Shares--Total Return* + 9.29(5) +8.39(6)
ML Americas Income Fund Class D Shares--Total Return* + 9.27(7) +8.28(8)
ML Americas Income Fund Class A Shares--Standardized 30-day Yield 12.09%
ML Americas Income Fund Class B Shares--Standardized 30-day Yield 11.82%
ML Americas Income Fund Class C Shares--Standardized 30-day Yield 11.76%
ML Americas Income Fund Class D Shares--Standardized 30-day Yield 11.84%
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
++Investment results shown for Class A and Class C Shares are since
inception (10/21/94).
(1)Percent change includes reinvestment of $0.836 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.240 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.838 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.222 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.768 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.221 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.882 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.233 per share ordinary
income dividends.
</TABLE>
<PAGE>
Aggregate
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Inception (10/21/94) through 9/30/95 +10.74% +6.31%
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through 9/30/95 +9.29% +8.29%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
Average Annual
Total Return
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/95 +8.70% +4.74%
Inception (8/27/93) through 9/30/95 +4.07 +3.24
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 9/30/95 +9.27% +4.90%
Inception (8/27/93) through 9/30/95 +4.60 +2.58
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
8/27/93--12/31/93 $10.00 $10.84 -- $0.281 +11.30%
1994 10.84 8.48 -- 0.754 -15.08
1/1/95--9/30/95 8.48 9.02 -- 0.619 +15.03
------
Total $1.654
Cumulative total return as of 9/30/95: + 8.71%**
<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 payable date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<PAGE>
<TABLE>
Performance
Summary--
Class D Shares***
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
8/27/93--12/31/93 $10.00 $10.84 -- $0.300 +11.49%
1994 10.84 8.48 -- 0.802 -14.65
1/1/95--9/30/95 8.48 9.02 -- 0.650 +15.46
------
Total $1.752
Cumulative total return as of 9/30/95: + 9.87%**
<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 payable date, and do not
include sales charges; results would be lower if sales charge was
included.
***As a result of the implementation of the Merrill Lynch Select
Pricing SM System, Class A Shares of the Fund outstanding prior to
October 21, 1994 were redesignated to Class D Shares.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Interest Maturity Percent of
COUNTRY Industry Face Amount Bonds Rate Date Value Net Assets
<S> <S> <C> <S> <C> <C> <C> <C>
Argentina Banking $ 6,000,000 Banco de Galicia y Buenos
Aires S.A.--Yankee 9.00 % 11/01/2003 $ 4,560,000 3.7%
7,000,000 Banco Rio de la Plata S.A.--Yankee 8.75 12/15/2003 5,320,000 4.3
------------ ------
9,880,000 8.0
Conglomerate 2,000,000 Sociedad Comercial del Plata 8.75 12/14/1998 1,817,500 1.5
Energy
Total Bonds in Argentina
(Cost--$14,902,541) 11,697,500 9.5
<PAGE>
Brazil Banking 4,000,000 Banco do Estado Parana 10.00 2/27/1996 3,960,000 3.2
850,000 Banco Minas Gerais 10.00 1/15/1996 843,625 0.7
2,000,000 Banco Nacional de Desinvolvimento
Economic E Social (BNDES) 10.375 4/27/1998 2,000,000 1.6
------------ ------
6,803,625 5.5
Energy 1,000,000 Celulose Nipo--Brasileira S.A.
(CENIBRA) 9.375 12/21/2003 942,500 0.8
Oil Service 1,000,000 Compania Brazileira de Petroleo
Ipiranga (a) 8.625 2/25/2002 967,500 0.8
Paper 1,000,000 Klabin Fabricadora Papel 10.00 12/20/2001 952,500 0.8
Total Bonds in Brazil (Cost--$9,805,150) 9,666,125 7.9
Colombia Banking 2,000,000 Banco de Colombia 7.50 10/21/1998 1,915,000 1.5
Total Bonds in Colombia
(Cost--$1,952,500) 1,915,000 1.5
Mexico Banking 1,000,000 Banco de Atlantico, S.A. 7.875 11/05/1998 865,000 0.7
7,000,000 Banco Nacional Comercio Exterior 7.25 2/02/2004 5,320,000 4.3
1,500,000 Banco Nacional de Mexico, S.A. 9.125 4/06/2000 1,395,000 1.1
------------ ------
7,580,000 6.1
Chemical 1,000,000 Grupo Desc--IRSA 8.375 7/15/1998 910,000 0.7
Steel 2,000,000 Grupo Simec, S.A. de C.V., guaranteed
by Grupo Sidek, S.A. 8.875 12/15/1998 1,333,750 1.1
Tourism 2,500,000 Grupo Situr, S.A. de C.V., guaranteed
by Grupo Sidek, S.A. 8.75 9/14/1998 1,525,000 1.2
Total Bonds in Mexico
(Cost--$12,223,328) 11,348,750 9.1
Venezuela Oil 1,000,000 Bariven S.A. 10.625 3/17/2002 927,500 0.7
Total Bonds in Venezuela
(Cost--$1,075,000) 927,500 0.7
Total Investments in Bonds
(Cost--$39,958,519) 35,554,875 28.7
Brady Bonds
<PAGE>
Argentina Sovereign 28,000,000 Republic of Argentina, Floating
Government Rate Bond 6.813 3/31/2005 17,360,000 14.0
Obligations 4,500,000 Republic of Argentina, Par Bond,
Series 'L' 5.00 3/31/2023 2,176,875 1.8
Total Brady Bonds in Argentina
(Cost--$19,195,500) 19,536,875 15.8
Brazil Sovereign 5,202,000 Republic of Brazil, C Bonds (a) 8.00 4/15/2014 2,763,563 2.2
Government 2,500,000 Republic of Brazil, EI Bonds 7.25 4/15/2006 1,659,375 1.3
Obligations 3,000,000 Republic of Brazil, Exit Bonds 6.00 9/15/2013 1,590,000 1.3
500,000 Republic of Brazil, Floating Rate
Bond, Debenture 7.313 4/15/2012 289,375 0.2
11,000,000 Republic of Brazil, Floating Rate
Bond, New Money 7.313 4/15/2009 6,696,250 5.4
Total Brady Bonds in Brazil (Cost--
$12,398,047) 12,998,563 10.4
Mexico Sovereign 25,000,000 United Mexican States, Par 'A' 6.25 12/31/2019 15,250,000 12.3
Government 14,000,000 United Mexican States, Par 'B' 6.25 12/31/2019 8,540,000 6.9
Obligations 39,001,000 United Mexican States, Value
Recovery Rights 0.00 -- --
Total Brady Bonds in Mexico
(Cost--$24,786,459) 23,790,000 19.2
Venezuela Sovereign 250,000 Republic of Venezuela, DCB 6.813 12/18/2007 125,937 0.1
Government 2,000,000 Republic of Venezuela, FLIRB 6.813 3/31/2007 1,020,000 0.8
Obligations 2,000,000 Republic of Venezuela, Par Bond,
Series 'B' 6.75 3/31/2020 1,022,500 0.8
10,000 Republic of Venezuela, Recovery
Rights 0.00 -- --
Total Brady Bonds in Venezuela
(Cost--$2,284,027) 2,168,437 1.7
Total Investments in Brady Bonds
(Cost--$58,664,033) 58,493,875 47.1
Short-Term Investments
<PAGE>
Certificates 2,600,000 Banco Mexicano 17.25 10/04/1995 2,597,611 2.1
of Deposit
Total Certificates of Deposit
(Cost--$2,597,611) 2,597,611 2.1
Commercial Paper* 475,000 General Electric Capital Corp. 6.45 10/02/1995 475,000 0.4
Total Commercial Paper (Cost--
$475,000) 475,000 0.4
Foreign 13,867,030 Mexican Cetes 35.35 12/14/1995 2,023,967 1.6
Government 7,495,520 Mexican Cetes 36.15 3/07/1996 1,014,742 0.8
Obligations* 8,512,500 Mexican Cetes 36.20 9/05/1996 988,903 0.8
Total Foreign Government
Obligations (Cost--$4,136,980) 4,027,612 3.2
Total Short-Term Investments
(Cost--$7,209,591) 7,100,223 5.7
Total Investments (Cost--$105,832,143) 101,148,973 81.5
Other Assets Less Liabilities 22,934,658 18.5
------------ ------
Net Assets $124,083,631 100.0%
============ ======
Net Asset Class A--Based on net assets of $1,397,758 and
Value: 154,191 shares outstanding $ 9.07
============
Class B--Based on net assets of $95,777,012 and
10,614,676 shares outstanding $ 9.02
============
Class C--Based on net assets of $989,357 and 109,682
shares outstanding $ 9.02
============
Class D--Based on net assets of $25,919,504 and
2,873,298 shares outstanding $ 9.02
============
<FN>
(a)Represents a step bond; the interest rate shown is the effective
yield at the time of purchase by the Fund.
*Commercial Paper and Foreign Government Obligations are traded on a
discount basis; the interest rates shown are the discount rates paid
at the time of purchase by the Fund.
</TABLE>
<PAGE>
