MERRILL LYNCH
AMERICAS INCOME
FUND, INC.
FUND LOGO
Quarterly Report
March 31, 1996
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
diversi-fication 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.
Statements and other information herein are as dated and are subject
to change.
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.
<PAGE>
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.
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.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
<PAGE>
In recent weeks emerging markets debt was dominated by a
deterioration in the interest rate outlook in the United States. The
perception of a weakening economy and lower interest rates is
changing to one of an economy that is ready to rebound and
consequently requires little or no further stimulus by the Federal
Reserve Board. Economic statistics released so far are not
conclusive but warrant close attention. Emerging markets debt, which
still is very sensitive to US interest rates, experienced a sell-off
and investors are awaiting more clarification on the US interest
rate outlook. Credit fundamentals in Latin America have continued to
show general improvement.
In the United States, an environment of modest economic growth and
low inflation would probably keep US interest rates within a trading
range. This type of environment would be ideal for Latin American
economies. Under this scenario, we foresee narrowing spreads between
US Treasury securities and the debt of emerging countries.
Investment Environment
Mexico
The Mexican economy shows signs of stabilization with growth in the
export sector. Mexico has recorded 12 consecutive months of trade
surpluses aided by a weaker peso. We expect tangible growth in the
overall economy in the second half of the year.
Despite the deep recession in Mexico, the government continues to
adhere to its economic austerity program. Tight monetary policy has
resulted in very high real interest rates. These policies have
increased confidence among investors and helped bring
Mexico back to the international market faster than most analysts
expected.
Argentina
In Argentina, all the elements are in place to resume economic
growth. Foreign exchange reserves and total deposits in the banking
system have grown, reaching levels of before the Mexican crisis. In
addition, domestic interest rates are declining. The Menem
administration received the authority from congress to act by decree
on certain administrative and tax matters to help balance the budget
in 1996. Argentina continues to have excellent access to
international capital markets. The International Monetary Fund (IMF)
has supported the Argentine economic program.
<PAGE>
Brazil
Brazil continues to move in the right direction, albeit slowly.
March's 0.23% rate of inflation is the lowest seen in more than ten
years. Foreign exchange reserves of US$56 billion give Brazil a good
deal of flexibility in the short term. One area of concern is the
fiscal situation. Brazil's fiscal deficit of 5% of gross domestic
product in 1995 was much higher than expected. In 1996, lower
nominal interest rates and lower real growth in public sector
payroll are expected to contract the deficit. Most recent events in
the financial sector have brought into question the health of the
banking system and supervision capacity of the central bank. We
continue to monitor this situation. The progress of much-needed
fiscal reforms proceeded more slowly than expected through the
legislative process. We expect approval of some of these reforms by
year-end.
Venezuela
In Venezuela, the Caldera administration announced a market-oriented
adjustment program backed by the IMF. This is a very comprehensive,
orthodox program with complete liberalization of domestic interest
rates and foreign exchange rates, as well as the removal of
subsidies on the price of gasoline. An IMF agreement, which is
expected to be signed by late May, will include $1.4 billion in
financing. In addition, the World Bank and the Interamerican
Development Bank will lend about $3 billion to Venezuela. While the
market celebrated the announcement of the new economic program, we
remain vigilant in monitoring its implementation.
In Conclusion
We thank you for your investment in Merrill Lynch Americas Income
Fund, Inc., and we look forward to reviewing our outlook and
strategy with you again in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Paolo Valle)
Paolo Valle
Vice President and Portfolio Manager
<PAGE>
May 14, 1996
PERFORMANCE DATA
About Fund
Performance
Investors are 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 approximately 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).
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.
<PAGE>
PERFORMANCE DATA (concluded)
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/96 +47.60% +41.69%
Inception (10/21/94) through 3/31/96 +17.47 +14.20
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/96 +46.54% +42.54%
Inception (8/27/93) through 3/31/96 + 8.46 + 7.78
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/96 +46.48% +45.48%
Inception (10/21/94) through 3/31/96 +16.12 +16.12
[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>
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 3/31/96 +47.09% +41.21%
Inception (8/27/93) through 3/31/96 + 9.01 + 7.31
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
<TABLE>
Performance
Summary--
Class A Shares***
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $9.08 $8.51 -- $0.168 - 4.45%
1995 8.51 9.70 -- 0.944 +27.27
1/1/96--3/31/96 9.70 9.82 -- 0.220 + 3.76
------
Total $1.332
Cumulative total return as of 3/31/96: +26.18%**
<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>
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
1995 8.48 9.65 -- 0.875 +26.10
1/1/96--3/31/96 9.65 9.78 -- 0.202 + 3.59
------
Total $2.112
<PAGE>
Cumulative total return as of 3/31/96: +23.46%**
<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>
<TABLE>
Performance
Summary--
Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $9.08 $8.47 -- $0.152 - 5.06%
1995 8.47 9.65 -- 0.870 +26.18
1/1/96--3/31/96 9.65 9.78 -- 0.201 + 3.58
------
Total $1.223
Cumulative total return as of 3/31/96: +24.09%**
<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>
<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
1995 8.48 9.65 -- 0.919 +26.75
1/1/96--3/31/96 9.65 9.78 -- 0.214 + 3.71
------
Total $2.235
Cumulative total return as of 3/31/96: +25.09%**
<PAGE>
<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>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
3/31/96 12/31/95 3/31/95 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Americas Income Fund Class A Shares* $9.82 $9.70 $7.40 +32.70% +1.24%
ML Americas Income Fund Class B Shares* 9.78 9.65 7.37 +32.70 +1.35
ML Americas Income Fund Class C Shares* 9.78 9.65 7.37 +32.70 +1.35
ML Americas Income Fund Class D Shares* 9.78 9.65 7.37 +32.70 +1.35
ML Americas Income Fund Class A Shares--Total Return* +47.60(1) +3.76(2)
ML Americas Income Fund Class B Shares--Total Return* +46.54(3) +3.59(4)
ML Americas Income Fund Class C Shares--Total Return* +46.48(5) +3.58(6)
ML Americas Income Fund Class D Shares--Total Return* +47.09(7) +3.71(8)
ML Americas Income Fund Class A Shares--Standardized 30-day Yield 10.12%
ML Americas Income Fund Class B Shares--Standardized 30-day Yield 9.76%
ML Americas Income Fund Class C Shares--Standardized 30-day Yield 9.69%
ML Americas Income Fund Class D Shares--Standardized 30-day Yield 9.88%
<PAGE>
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
(1)Percent change includes reinvestment of $0.983 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.220 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.910 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.202 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.905 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.201 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.956 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.214 per share ordinary
income dividends.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Interest Maturity Percent of
COUNTRY Industry Face Amount Bonds Rate Date Value Net Assets
<S> <S> <C> <S> <C> <S> <C> <C>
Argentina Banking US$ 6,000,000 Banco de Galicia y Buenos Aires
S.A.--Yankee 9.00 % 11/01/2003 $ 5,220,000 3.2%
7,000,000 Banco Rio de la Plata S.A.
--Yankee 8.75 12/15/2003 6,090,000 3.8
------------ ------
11,310,000 7.0
Conglomerate 2,000,000 Sociedad Commercial del Plata 8.75 12/14/1998 1,905,000 1.2
Energy
Utilities 1,000,000 Telecom Argentina Stet--France
Telecom S.A. 12.00 11/15/2002 1,047,500 0.6
Total Bonds in Argentina
(Cost--$15,902,347) 14,262,500 8.8
Brazil Energy 1,000,000 Celulose Nipo--Brasileira S.A.
(CENIBRA) 9.375 12/21/2003 982,500 0.6
Oil Service 1,000,000 Compania Brazileira de Petroleo
Ipiranga 8.625 2/25/2002 990,000 0.6
Paper 1,000,000 Klabine Fabricadora Papel 10.00 12/20/2001 990,000 0.6
Total Bonds in Brazil
(Cost--$3,001,701) 2,962,500 1.8
Colombia Banking 2,000,000 Banco de Colombia 7.50 10/21/1998 1,937,500 1.2
<PAGE>
Total Bonds in Colombia
(Cost--$1,952,500) 1,937,500 1.2
Mexico Banking 1,500,000 Banamex Eurobond, S.A. 9.125 4/06/2000 1,443,750 0.9
1,000,000 Banco de Atlantico, S.A. 7.875 11/05/1998 920,000 0.6
8,000,000 Banco Nacional Comercio Exterior 7.25 2/02/2004 6,580,000 4.1
------------ ------
8,943,750 5.6
Chemicals 1,000,000 Grupo Desc--IRSA 8.375 7/15/1998 943,750 0.6
Tourism 1,000,000 Grupo Situr, S.A. de C.V.,
guaranteed by Grupo Sidek, S.A. 8.75 9/14/1998 373,750 0.2
Total Bonds in Mexico
(Cost--$10,382,250) 10,261,250 6.4
Venezuela Oil 1,000,000 Bariven S.A. 10.625 3/17/2002 1,003,750 0.6
Total Bonds in Venezuela
(Cost--$1,075,000) 1,003,750 0.6
Total Investments in Bonds
(Cost--$32,313,798) 30,427,500 18.8
Brady Bonds*
Argentina Sovereign 6,000,000 Republic of Argentina (ADR) (a) 8.375 12/20/2003 5,055,000 3.1
Government 17,500,000 Republic of Argentina, Floating
Obligations 30,000,000 Rate Bond 6.812 3/31/2005 12,578,125 7.7
Republic of Argentina, Floating
Rate Bond 5.00 3/31/2023 15,562,500 9.6
Total Brady Bonds in Argentina
(Cost--$34,470,628) 33,195,625 20.4
Brazil Sovereign 37,142,280 Republic of Brazil, C Bonds 8.00 4/15/2014 21,867,517 13.5
Government 3,000,000 Republic of Brazil, Exit Bonds 6.00 9/15/2013 1,743,750 1.1
Obligations 500,000 Republic of Brazil, Floating Rate
10,000,000 Bond, Debenture 6.875 4/15/2012 309,060 0.2
Republic of Brazil, Floating Rate
Bond, Discount 6.812 4/15/2024 6,412,500 3.9
Total Brady Bonds in Brazil
(Cost--$29,415,634) 30,332,827 18.7
<PAGE>
Ecuador Sovereign 10,000,000 Republic of Ecuador--Discount 6.062 2/28/2025 5,400,000 3.3
Government
Obligations
Total Brady Bonds in Ecuador
(Cost--$4,951,537) 5,400,000 3.3
Mexico Sovereign 12,000,000 United Mexican States, Par 'A' 6.25 12/31/2019 7,635,000 4.7
Government 12,001,000 United Mexican States, Value
Obligations Recovery Rights (b) 0.00 -- 12 0.0
Total Brady Bonds in Mexico
(Cost--$7,349,524) 7,635,012 4.7
Venezuela Sovereign 27,250,000 Republic of Venezuela, DCB 6.562 12/18/2007 16,452,187 10.1
Government 2,000,000 Republic of Venezuela, Floating
Obligations 2,000,000 Rate Bond 6.812 3/31/2007 1,217,500 0.7
10,000 Republic of Venezuela, Par Bond,
Series 'B' 6.75 3/31/2020 1,127,500 0.7
Republic of Venezuela, Recovery
Rights (c) 0.00 -- 0 0.0
Total Brady Bonds in Venezuela
(Cost--$17,390,268) 18,797,187 11.5
Total Investments in Brady
Bonds (Cost--$93,577,591) 95,360,651 58.6
Short-Term Investments
Commercial 7,435,000 General Electric Capital Corp. 5.50 4/01/1996 7,435,000 4.6
Paper**
Total Investments in Commercial
Paper (Cost--$7,435,000) 7,435,000 4.6
Foreign MXP 8,512,500 Mexican Cetes 36.20 9/05/1996 951,765 0.6
Government
Obligations**
Total Foreign Government
Obligations (Cost--$1,173,933) 951,765 0.6
<PAGE>
US US$11,000,000 Federal Home Loan Mortgage
Government & Corporation 5.30 4/01/1996 11,000,000 6.8
Agency
Obligations**
Total US Government & Agency
Obligations (Cost--$11,000,000) 11,000,000 6.8
Total Short-Term Investments
(Cost--$19,608,933) 19,386,765 12.0
Total Investments (Cost--$145,500,322) 145,174,916 89.4
Other Assets Less Liabilities 17,182,527 10.6
------------ ------
Net Assets $162,357,443 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $13,892,531 and 1,414,538
shares outstanding $ 9.82
============
Class B--Based on net assets of $126,849,824 and 12,970,297
shares outstanding $ 9.78
============
Class C--Based on net assets of $5,808,131 and 593,948
shares outstanding $ 9.78
============
Class D--Based on net assets of $15,806,957 and 1,617,009
shares outstanding $ 9.78
============
<FN>
(a)American Depositary Receipts (ADR).
(b)The rights may be exercised until 12/31/2019.
(c)The rights may be exercised until 3/31/2020.
*Brady Bonds are securities which have been issued to refinance
commercial bank loans and other debt. They are created when
creditors tender eligible debt in exchange for new bonds.
**Commercial Paper and certain US Government & Agency Obligations
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>
