MERRILL LYNCH
AMERICAS INCOME
FUND, INC.
FUND LOGO
Quarterly Report
March 31, 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.
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.
<PAGE>
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Merrill Lynch
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 which 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
Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
DEAR SHAREHOLDER
During the first quarter of 1995, a confidence and liquidity crisis
developed in the emerging markets. A low point for the emerging debt
markets was reached on March 8, 1995. This crisis was driven by
fears of a collapse of the convertibility plan and banking system in
Argentina, mismanagement of the foreign exchange rate policy and
constitutional reforms in Brazil and the absence of a credible
economic plan and political leadership in Mexico. As a result, the
market was overwhelmed with heavy selling by diverse investors,
principally global funds reducing their allocations to emerging
markets because of the high volatility. Furthermore, the market had
to deal with rumors of large losses among the emerging market dealer
community and rumors of US Congressional action to restrict or
reverse the Mexican rescue package.
<PAGE>
Subsequently, most investors were virtually inactive and the market
was dominated by bad technicals. Mutual funds were experiencing
redemptions. The market was very thin and volatility was very high.
Given the absence of the buy side, dealers were comfortable hedging
their Eurobond long positions by maintaining short positions in
Brady bonds. As a result, Brady bond prices were more a function of
the supply situation in Eurobonds rather than their fundamen-tal
values. In our view, this was the main reason for the default
scenario prices on Brady bonds. Some dealers are reversing these
hedges as some buyers of Eurobonds are back, and the price of the
Brady bonds have moved up rapidly.
The market has shown a good recovery initiated by the implementation
of a credible economic plan in Mexico and by the unveiling of a
large financing package to support the convertibility plan in
Argentina. Some market crossover investors as well as locals buying
Euro-bonds have emerged, improving the technicals of the market.
Also, at current price levels, US collateral (principal plus
interest) represents a significant proportion of the cost of
investing in Brady bonds. The US collateral ranged from 19% for the
Polish discount bonds to 58% for the Ecuadorian par bonds. At this
time, there are still economic and political risks that are leading
us to take a cautious investment approach. The US interest rate
environment for 1995 is estimated to be stable, and this should be
positive for the emerging markets debt. Our outlook continues to
stress three main ideas: First, economic and political reforms
continue. Second, the soundness of the underlying economic
fundamentals of these countries needs additional fine tuning.
Finally, these countries have demonstrated their commitment to these
reforms during the last years, especially during recent months.
Mexican Investment
Environment
President Zedillo gained political momentum with the exit of Salinas
from Mexico. Zedillo was able to get his economic plan ratified by
congress and is pressing on with the investigations into the
assassinations of Presidential candidate Luis Colosio and Attorney
General Massieu. The weaker peso is already helping the trade
situation and exports are continuing to accelerate. The monetary
policy aimed at fighting inflation and strengthening the peso is
starting to work. The rescue package of $50 billion along with the
Mexican economic plan is expected to put Mexico back on its feet by
the end of the year. We expect to see consistent improvement in the
fundamentals in the coming months. In spite of that, the main risks
remain the political and social response to such a painful and tough
economic adjustment. Mexico is the key to investor confidence in
Latin America. A positive shift in investor sentiment in Mexico will
help the entire region.
<PAGE>
Argentine Investment
Environment
The Argentines have announced an $11 billion package consisting of
official assistance from multilateral agencies, spending cuts,
privatizations, a patriotic bond to be subscribed by local
Argentines and a potential commercial bank package. This move has
definitely changed investor sentiment in Argentina. Finance Minister
Cavallo was very pro-active during this crisis and has impressed the
market with his handling of the international investment community.
While all the weak banks have not been restructured or liquidated,
the banking sector crisis is settling down, the drain of deposits is
subsiding and call money rates are down to 10%. President Menem is
expected to win re-election in May. Argentina seems to have overcome
a major liquidity and confidence crisis. Despite this, the economy
will have to adjust to lower capital inflows and fiscal austerity.
The banking system will experience a long painful restructuring. In
our view, it is important to see private capital inflows return to
Argentina.
Brazilian Investment
Environment
Brazil has surprised us with recent developments. Concerned by
falling foreign exchange reserves and a deteriorating trade balance,
the administration orchestrated a clumsy 7% devaluation of the Real
and has signaled that it may seek to weaken the Real again in May.
While the devaluation is positive for Brazil's trade balance, its
impact on the Real plan is to be watched closely. Fears of
infighting within the Cardoso cabinet, the lack of progress in the
constitutional reform effort and the lack of news regarding
privatizations has kept the market on the defensive. In spite of the
apparent loss of momentum for the new Cardoso administration, it
would be premature to lose confidence in Brazil. The current
administration is competent, has a concrete plan, has shown the
willingness to take bold actions and is currently negotiating its
way through a regional crisis of confidence and a troubled political
landscape. We believe that the Cardoso administration will be able
to deliver constitutional reform and guide Brazil through this
difficult period.
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 semi-annual report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Paolo Valle)
Paolo Valle
Vice President and Portfolio Manager
May 12, 1995
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", "Performance Summary"
and "Average Annual Total Return" 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 pages 4 and 5.
<PAGE>
PERFORMANCE DATA (concluded)
About Fund
Performance
(concluded)
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 March 31, 1995 and
for Class A and Class C Shares for the since inception and 3-month
periods ended March 31, 1995. All data in this table assume
imposition of the actual total expenses incurred by each class of
shares during the relevant period.
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.
Average Annual
Total Return
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/95 -12.27% -15.44%
Inception (8/27/93) through 3/31/95 -10.21 -11.91
[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 3/31/95 -11.79% -15.31%
Inception (8/27/93) through 3/31/95 -9.68 -11.96
[FN]
*Maximum sales charge is 4%. On 10/21/94, Class A Shares were
redesignated to Class D Shares.
**Assuming maximum sales charge.
Aggregate
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Inception (10/21/94) through 3/31/95 -14.51% -17.93%
[FN]
*Maximum sales charge is 4%. On 10/21/94, Class A Shares were
redesignated to Class D Shares.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through 3/31/95 -15.28% -16.09%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
3/31/95 12/31/94 3/31/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Americas Income Fund Class A Shares* $7.40 $8.51 $9.08 -18.50% -13.04%
ML Americas Income Fund Class B Shares* 7.37 8.48 9.18 -19.72 -13.09
ML Americas Income Fund Class C Shares* 7.37 8.47 9.08 -18.83 -12.99
ML Americas Income Fund Class D Shares* 7.37 8.48 9.18 -19.72 -13.09
ML Americas Income Fund Class A Shares--Total Return* -14.51(1) -10.54(2)
ML Americas Income Fund Class B Shares--Total Return* -12.27(3) -10.86(4)
ML Americas Income Fund Class C Shares--Total Return* -15.28(5) -10.77(6)
ML Americas Income Fund Class D Shares--Total Return* -11.79(7) -10.63(8)
ML Americas Income Fund Class A Shares--Standardized 30-day Yield 13.77%
ML Americas Income Fund Class B Shares--Standardized 30-day Yield 13.45%
ML Americas Income Fund Class C Shares--Standardized 30-day Yield 13.45%
ML Americas Income Fund Class D Shares--Standardized 30-day Yield 13.40%
<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 $0.349 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.181 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.762 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.168 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.319 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.166 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.808 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.176 per share ordinary
income dividends.
</TABLE>
<PAGE>
<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--3/31/95 8.48 7.37 -- 0.168 -10.86
------
Total $1.203
Cumulative total return as of 3/31/95: -15.75%**
<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 deductionof any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<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--3/31/95 8.48 7.37 -- 0.176 -10.63
------
Total $1.278
Cumulative total return as of 3/31/95: -14.96%**
<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 have been redesignated to Class D Shares.
</TABLE>
<PAGE>
<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 Galica y Buenos
Aires S.A.--Yankee 9.00 % 11/01/2003 $ 3,270,000 3.6%
7,000,000 Banco Rio de la Plata
S.A.--Yankee 8.75 12/15/2003 4,130,000 4.5
----------- ------
7,400,000 8.1
Conglomerate 2,000,000 Sociedad Commercial
Energy del Plata 8.75 12/14/1998 1,180,000 1.3
Sovereign 15,000,000 Republic of Argentina,
Government Floating Rate Bond 7.312 3/31/2005 8,081,250 8.8
Obligations 3,000,000 Republic of Argentina--Global 8.375 12/20/2003 1,965,000 2.1
9,500,000 Republic of Argentina, Par 'L' 5.00 3/31/2023 3,871,250 4.2
----------- ------
13,917,500 15.1
Total Bonds in
Argentina (Cost--$28,558,569) 22,497,500 24.5
Brazil Banking 4,000,000 Banco de Estado de Parana 10.00 2/27/1996 3,600,000 3.9
1,500,000 Banco Real S.A. 10.00 5/27/1995 1,470,000 1.6
3,000,000 Uniao de Bancos Brasileiros
S.A. (UNIBANCO) 8.50 7/29/1996 2,895,000 3.1
850,000 Usinas Siderurgicas de Minas
Gerais--Usiminas S.A. 10.00 1/15/1996 775,625 0.8
----------- ------
8,740,625 9.4
Energy 1,000,000 Celulose Nipo--Brasileira
S.A. (CENIBRA) 9.375 12/21/2003 838,750 0.9
Oil 1,000,000 Compania Brazileira de
Petroleo Ipiranga 8.625 2/25/2002 860,000 0.9
Paper 1,000,000 Klabine Fabricadora Papel 10.00 12/20/2001 780,000 0.8
Total Bonds in Brazil
(Cost--$12,400,101) 11,219,375 12.0
Colombia Banking 2,000,000 Banco de Colombia 7.50 10/21/1998 1,740,000 1.9
Total Bonds in Colombia
(Cost--$1,952,500) 1,740,000 1.9
<PAGE>
Ecuador Sovereign 3,000,000 Republic of Ecuador 7.25 2/28/2025 1,338,750 1.5
Government
Obligations
Total Bonds in Ecuador
(Cost--$1,795,373) 1,338,750 1.5
Mexico Banking 1,000,000 Banco de Atlantico, S.A. 7.875 11/05/1998 610,000 0.7
Sovereign 1,500,000 Banamex Eurobond, S.A. 9.125 4/06/2000 1,020,000 1.1
Government
Obligations
Steel 2,000,000 Grupo Simec, S.A. de C.V.,
guaranteed by Grupo Sidek, S.A. 8.875 12/15/1998 760,000 0.8
Tourism 3,500,000 Grupo Situr, S.A. de C.V.,
guaranteed by Grupo Sidek, S.A. 8.75 9/14/1998 1,330,000 1.4
Total Bonds in Mexico
(Cost--$8,097,718) 3,720,000 4.0
United Food & Beverage 1,000,000 Fresh Del Monte Produce N.V. 10.00 5/01/2003 770,000 0.8
States
Total Bonds in the United States
(Cost--$976,250) 770,000 0.8
Venezuela Oil 1,000,000 Bariven S.A. 10.625 3/17/2002 852,500 0.9
Total Bonds in Venezuela
(Cost--$1,075,000) 852,500 0.9
Total Investments in Bonds
(Cost--$54,855,511) 42,138,125 45.6
Brady Bonds
<PAGE>
Brazil Sovereign 19,380,000 Republic of Brazil, C Bonds (a)* 8.00 4/15/2014 6,888,310 7.5
Government 2,500,000 Republic of Brazil, EI Bonds 6.687 4/15/2006 1,243,750 1.4
Obligations 5,000,000 Republic of Brazil, Exit Bonds 6.00 9/15/2013 1,850,000 2.0
19,500,000 Republic of Brazil, Floating
Rate Bond, Debenture 6.75 4/15/2012 8,287,500 9.0
9,500,000 Republic of Brazil, Floating
Rate Bond, New Money* 6.75 4/15/2009 4,251,250 4.6
Total Brady Bonds in Brazil
(Cost--$30,840,952) 22,520,810 24.5
Mexico Sovereign 2,000,000 United Mexican States Par 'A' 6.25 12/31/2019 945,000 1.0
Government 2,501,000 United Mexican States Par 'A'
Obligations (Rights) 0.00 0.0
5,500,000 United Mexican States Par 'B'* 6.25 12/31/2019 2,598,750 2.8
5,000,000 United Mexican States Par 'B'
(Rights) 0.00 0.0
Total Brady Bonds in Mexico
(Cost--$4,143,448) 3,543,750 3.8
Venezuela Sovereign 5,000,000 Republic of Venezuela,
Government Floating Rate Bond 7.312 3/31/2007 2,100,000 2.3
Obligations 3,000,000 Republic of Venezuela, Par 'A' 6.75 3/31/2020 1,286,250 1.4
15,000 Republic of Venezuela, Par 'A'
(Rights) 0.00 0.0
7,000,000 Republic of Venezuela, Par 'B' 6.75 3/31/2020 3,001,250 3.3
35,000 Republic of Venezuela, Par 'B'
(Rights) 0.00 0.0
Total Brady Bonds in Venezuela
(Cost--$8,956,288) 6,387,500 7.0
Total Investments in Brady Bonds
(Cost--$43,940,688) 32,452,060 35.3
Loan Agreements
Ecuador Banking 3,000,000 Banco Central de Equador,
Consolidated Agreement 10.00 3/09/2024 361,500 0.4
Total Loan Agreements in Ecuador
(Cost--$868,416) 361,500 0.4
Total Investments in Loan
Agreements (Cost--$868,416) 361,500 0.4
<PAGE>
Short-Term Securities
United Commercial 942,000 General Electric Capital Corp. 6.25 4/03/1995 942,000 1.0
States Paper**
Total Commercial Paper
(Cost--$942,000) 942,000 1.0
Total Investments in Short-Term
Securities (Cost--$942,000) 942,000 1.0
Total Investments (Cost--$100,606,615) 75,893,685 82.3
Other Assets Less Liabilities 16,298,656 17.7
----------- ------
Net Assets $92,192,341 100.0%
=========== ======
Net Asset Value: Class A--Based on net assets of $998,014 and 134,823
shares outstanding $ 7.40
===========
Class B--Based on net assets of $79,819,307 and 10,829,017
shares outstanding $ 7.37
===========
Class C--Based on net assets of $164,832 and 22,365
shares outstanding $ 7.37
===========
Class D--Based on net assets of $11,210,188 and 1,521,002
shares outstanding $ 7.37
===========
<FN>
(a)Represents a paid-in-kind security.
*Security represents collateral in connection with reverse
repurchase agreements.
**Commercial Paper is traded on a discount basis; the interest rate
shown is the discount rate paid at the time of purchase by the Fund.
</TABLE>
