MERRILL LYNCH
AMERICAS INCOME
FUND, INC.
FUND LOGO
Annual Report
December 31, 1999
The Fund has the ability to leverage to seek 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.
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
Printed on post-consumer recycled paper
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.
Important Tax
Information
Of the ordinary income distributions paid monthly by Merrill Lynch
Americas Income Fund, Inc. during the taxable year ended December
31, 1999, 96.49% represents income from foreign sources. There were
no foreign taxes associated with this income. Additionally, there
were no long-term capital gains distributions paid during the year.
Please retain this information for your records.
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
DEAR SHAREHOLDER
Fiscal Year in Review
The emerging markets investment environment at the end of 1999 was
one of optimism, with asset prices consolidating after a strong 20%
rally from the summer lows in mid-August. For the fiscal year ended
December 31, 1999, Merrill Lynch Americas Income Fund, Inc.'s Class
A, Class B, Class C, and Class D Shares had total returns of
+23.12%, +22.20%, +21.94% and +22.87%, respectively. (Results shown
do not reflect sales charges; results shown would be lower if sales
charges were included. Complete performance information can be found
on pages 4--6 of this report to shareholders.) The performance of
the Fund benefited from the tightening of sovereign yield spreads,
which generally lifted emerging market bonds. The benchmark Index,
the unmanaged J.P. Morgan Emerging Markets Bond Latin (EMBI-Latin)
Index, tightened by 374 basis points (3.74%) during the year to
close the period 722 basispoints over US Treasury issues, and posted
a gain of +22.42% for the year.
The Fund also benefited from being fully invested most of the year,
and by our actively managing the country allocations in the
portfolio. For example, Brazil was underweighted prior to the
January 1999 devaluation of the real, but it became our top
overweighted position during most of the next ten months. Argentina
was our main underweighted position after US interest rates began
their ascent, and we eliminated our exposure to Ecuador altogether
by March, in anticipation of that country's default.
Economic Environment
Since our last shareholder report, further evidence of an
improvement in economic fundamentals continues to accumulate. Brazil
has delivered better-than-expected revenue collection and fiscal
deficit numbers. Its currency has seen a moderate appreciation and
its congress has adopted a friendlier stance toward government
fiscal reforms. Another example is Mexico, where its economic
activity is surging. Inflation is coming in lower than expected and
the peso has strengthened, reflecting record high foreign direct
investment inflows and Mexico's rapid integration with the US
economy via border assembly plants and manufactured exports.
The doubling of oil prices from their February 1999 lows has also
benefited many countries' external payments situation and government
finances, in particular Mexico and Venezuela. Other commodities
relevant to emerging countries are on the upswing as well.
Furthermore, market technicals in emerging markets' bonds remain
favorable.
Despite the recent rally, emerging market bonds are still out of
favor as an asset class. Trading volumes and brokerage houses' bond
inventories are a fraction of year ago levels, and high spreads have
discouraged potential supply of new securities from sovereigns and
corporates. From a shorter-term perspective, emerging markets'
prices began their upward move in the summer of 1999, after
investors priced in the likelihood of at least one, if not several,
Federal Reserve Board interest rate increases. Contributing to the
upward momentum, Brazil, Mexico and Argentina launched successful
Brady bonds repurchases, an unmistakable sign that asset prices were
excessively inexpensive in relation to supply and demand conditions
and underlying fundamentals.
Going forward, emerging markets' returns will continue to be
influenced by the course of US interest rates, despite short-term
complacency. Higher US and international interest rates may delay
emerging markets' economic recovery and limit their access to
international capital markets. In addition, emerging markets are
just as vulnerable to tight liquidity episodes that lead to widening
of yield spreads in fixed-income markets in general.
Other dimensions of the external environment may be turning more
favorable, particularly the pickup in economic activity in Asia
(excluding Japan) and in Europe, which could translate into higher
commodity prices and increased demand for emerging market exports.
Individual country risks, always present in this asset class, seemed
to have abated in the short term. However, in Argentina we remain
concerned about the new presidential administration's ability to
reduce the fiscal deficit and potential external borrowing
constraints during the year 2000. We believe the EMBI-Latin Index
yield spread over Treasury issues is likely to remain in a narrow
range.
Portfolio Matters
Although market momentum remains on the upside, the Fund's net asset
value gains are likely to be modest in the short term, with most of
the returns coming from coupons or monthly distributions. In terms
of portfolio allocations, we expect to remain fully invested. In the
Latin American sector, we favor Brazil because of the deepening of
its fiscal reform. We also favor Venezuela because of its strong oil
prices and because we expect that the reform of its institutional
framework will prove of long-term benefit. We continue to
underweight our position in Argentina, as we monitor progress on the
issues we discussed.
In Conclusion
We appreciate your ongoing investment in Merrill Lynch Americas
Income Fund, Inc., and we look forward to assisting you with your
financial needs in the months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Aldo Roldan)
Aldo Roldan
Vice President and Portfolio Manager
February 9, 2000
To reduce shareholder expenses, Merrill Lynch Americas Income Fund,
Inc. will no longer be printing and mailing quarterly reports to
shareholders. We will continue to provide you with reports on a semi-
annual and annual basis.
Officers and
Directors
Terry K. Glenn, President and Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Joseph T. Monagle Jr., Senior Vice President
Romualdo Roldan, Vice President
Donald C. Burke, Vice President and Treasurer
Barbara G. Fraser, Secretary
Donald Cecil and Edward H. Meyer, Directors of Merrill Lynch
Americas Income Fund, Inc. have recently retired. The Fund's Board
of Directors wishes Mr. Cecil and Mr. Meyer well in their
retirements.
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
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. However, in the case of certain
eligible investors, the shares 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. (There is no initial
sales charge for automatic share conversions.)
* 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. Figures shown in the "Recent Performance
Results" and "Average Annual Total Return" tables assume
reinvestment of all dividends and capital gains distributions at net
asset value on the payable date. 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.
Total Return
Based on a
$10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class C Shares compared to growth of an investment
in the JP Morgan Latin Brady Bond Index. Beginning and ending values
are:
10/21/94** 12/99
ML Americas Income Fund, Inc.++--
Class A Shares* $ 9,600 $12,472
ML Americas Income Fund, Inc.++--
Class C Shares* $10,000 $12,409
JP Morgan Latin Brady Bond
Index++++ $10,000 $20,000
A line graph depicting the growth of an investment in the Fund's
Class B Shares and Class D Shares compared to growth of an investment
in the JP Morgan Latin Brady Bond Index. Beginning and ending values
are:
10/21/94** 12/99
ML Americas Income Fund, Inc.++--
Class B Shares* $10,000 $12,394
ML Americas Income Fund, Inc.++--
Class D Shares* $ 9,600 $12,279
JP Morgan Latin Brady Bond
Index++++ $10,000 $20,234
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Americas Income Fund, Inc. invests primarily in debt securities
denominated in a currency of a country located in the Western
Hemisphere (i.e., North and South America and the surrounding
waters).
++++This unmanaged Index is comprised of dollar-denominated
restructured sovereign bonds, the securities created through the
restructuring of commercial bank debt. It includes a large
percentage of Brady bonds.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/99 +23.12% +18.20%
Five Years Ended 12/31/99 + 6.34 + 5.47
Inception (10/21/94) through 12/31/99 + 5.17 + 4.34
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/99 +22.20% +18.20%
Five Years Ended 12/31/99 + 5.57 + 5.57
Inception (8/27/93) through 12/31/99 + 3.44 + 3.44
*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 12/31/99 +21.94% +20.94%
Five Years Ended 12/31/99 + 5.50 + 5.50
Inception (10/21/94) through 12/31/99 + 4.24 + 4.24
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 12/31/99 +22.87% +17.96%
Five Years Ended 12/31/99 + 6.09 + 5.23
Inception (8/27/93) through 12/31/99 + 3.96 + 3.29
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
3 Month 12 Month Since Inception Standardized
As of December 31, 1999 Total Return Total Return Total Return 30-Day Yield
<S> <C> <C> <C> <C>
ML Americas Income Fund Class A Shares +10.14% +23.12% +29.92% 8.89%
ML Americas Income Fund Class B Shares +10.12 +22.20 +23.94 8.47
ML Americas Income Fund Class C Shares + 9.93 +21.94 +24.09 8.42
ML Americas Income Fund Class D Shares +10.09 +22.87 +27.91 8.65
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included. Total
investment returns are based on changes in net asset values for the
periods shown, and assume reinvestment of all dividends and capital
gains distributions at net asset value on the payable date. The
Fund's since inception periods are from 10/21/94 for Class A & Class
C Shares and from 8/27/93 for Class B & 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 Industrials US$ 1,800,000 Perez Companc SA 8.125% 7/15/2007 $ 1,564,153 4.9%
Sovereign 1,875,000 Republic of Argentina 9.75 9/19/2027 1,696,875 5.3
Government
Obligations
Telecommuni- 1,750,000 Telefonica de Argentina SA 9.125 5/07/2008 1,518,125 4.7
cations
Total Bonds in Argentina (Cost--$4,485,112) 4,779,153 14.9
Brazil Media-- 1,800,000 Globo Comunicacoes e
Communications Participacoes, Ltd. 10.50 12/20/2006 1,539,000 4.8
Metals 1,850,000 CSN Iron SA 9.125 6/01/2007 1,542,530 4.8
Sovereign 175,000 Republic of Brazil 9.375 4/07/2008 155,750 0.5
Government 150,000 Republic of Brazil 10.125 5/15/2027 128,700 0.4
Obligations ------------ ------
284,450 0.9
Utilities-- 1,540,000 Centrais Electricas
Electric Brasileiras SA 10.00 7/06/2004 1,528,450 4.7
1,600,000 Companie Paranaense
de Energia 9.75 5/02/2005 1,536,000 4.8
------------ ------
3,064,450 9.5
Total Bonds in Brazil (Cost--$5,661,913) 6,430,430 20.0
Mexico Broadcasting-- 1,470,000 Grupo Televisa SA 11.875 5/15/2006 1,572,900 4.9
Radio &
Television
Industrials 1,575,000 Petroleos Mexicanos 9.50 9/15/2027 1,539,563 4.8
Paper 1,400,000 Grupo Industrial Durango (a) 12.625 8/01/2003 1,393,000 4.4
Sovereign 700,000 United Mexican States 11.50 5/15/2026 834,750 2.6
Government
Obligations
Total Bonds in Mexico (Cost--$5,105,601) 5,340,213 16.7
Panama Sovereign 630,000 Republic of Panama 8.875 9/30/2027 529,200 1.7
Government
Obligations
Total Bonds in Panama (Cost--$573,300) 529,200 1.7
Venezuela Sovereign 575,000 Republic of Venezuela 13.625 8/15/2018 517,500 1.6
Government 2,250,000 Republic of Venezuela 9.25 9/15/2027 1,485,000 4.6
Obligations
Total Bonds in Venezuela (Cost--$1,855,985) 2,002,500 6.2
Total Investments in Bonds (Cost--$17,681,911) 19,081,496 59.5
Brady Bonds*
Argentina Sovereign 600,000 Republic of Argentina,
Government Discount (b) 6.875 3/31/2023 478,500 1.5
Obligations 1,100,000 Republic of Argentina,
Par 'L' 6.00 3/31/2023 723,250 2.2
Total Brady Bonds in Argentina (Cost--$1,180,365) 1,201,750 3.7
Brazil Sovereign 4,549,538 Republic of Brazil 'C' 8.00 4/15/2014 3,395,092 10.6
Government 750,000 Republic of Brazil,
Obligations Discount (b) 6.938 4/15/2024 569,062 1.8
1,363,000 Republic of Brazil 'EI' (b) 6.938 4/15/2006 1,195,215 3.7
1,175,000 Republic of Brazil NMB (b) 7.00 4/15/2009 956,156 3.0
Total Brady Bonds in Brazil (Cost--$5,218,603) 6,115,525 19.1
Mexico Sovereign 2,400,000 United Mexican States 'W-A' 6.25 12/31/2019 1,890,000 5.9
Government
Obligations
Total Brady Bonds in Mexico (Cost--$1,767,978) 1,890,000 5.9
Panama Sovereign 175,000 Republic of Panama, Interest
Government Reduction Bonds (b) 4.25 7/17/2014 135,406 0.4
Obligations
Total Brady Bonds in Panama (Cost--$125,765) 135,406 0.4
</TABLE>
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Interest Maturity Percent of
COUNTRY Industry Face Amount Brady Bonds* Rate Date Value Net Assets
<S> <S> <C> <S> <C> <C> <C> <C>
Peru Sovereign US$ 1,020,000 Republic of Peru, Front-Loaded
Government Interest Rate Reduction
Obligations Bonds (b) 3.75 % 3/07/2017 $ 629,850 2.0%
800,000 Republic of Peru, Past Due
Interest (b) 4.50 3/07/2017 546,000 1.7
Total Brady Bonds in Peru (Cost--$1,058,682) 1,175,850 3.7
Venezuela Sovereign 1,333,325 Republic of Venezuela DCB (b) 7.00 12/18/2007 1,039,994 3.2
Government 535,710 Republic of Venezuela,
Obligations Front-Loaded Interest Rate
Reduction Bonds 'B' (b) 6.875 3/31/2007 421,872 1.3
Total Brady Bonds in Venezuela (Cost--$1,297,550) 1,461,866 4.5
Total Investments in Brady Bonds (Cost--$10,648,943) 11,980,397 37.3
Short-Term Securities
United States Commercial 281,000 General Motors Acceptance Corp. 5.00 1/03/2000 281,000 0.9
Paper**
Total Investments in Short-Term Securities
(Cost--$281,000) 281,000 0.9
Total Investments (Cost--$28,611,854) 31,342,893 97.7
Other Assets Less Liabilities 751,810 2.3
------------ ------
Net Assets $ 32,094,703 100.0%
============ ======
*Brady Bonds are securities which have been issued to refinance
commercial bank loans and other debt. The risk associated with these
instruments is the amount of any uncollateralized principal or
interest payments since there is a high default rate of commercial
bank loans by countries issuing these securities.
**Commercial Paper is traded on a discount basis; the interest rate
shown reflects the discount rate paid at the time of purchase by the
Fund.
(a)The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
(b)Floating rate note.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS ANDLIABILITIES
<CAPTION>
As of December 31, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$28,611,854) $ 31,342,893
Cash 175
Receivables:
Interest $ 749,494
Securities sold 470,207
Capital shares sold 10,281 1,229,982
------------
Prepaid registration fees 45,803
------------
Total assets 32,618,853
------------
Liabilities: Payables:
Dividends to shareholders 227,147
Capital shares redeemed 169,370
Investment adviser 18,736
Distributor 18,640 433,893
------------
Accrued expenses 90,257
------------
Total liabilities 524,150
------------
Net Assets: Net assets $ 32,094,703
============
Net Assets Class A Common Stock, $.10 par value, 100,000,000
Consist of: shares authorized $ 27,700
Class B Common Stock, $.10 par value, 100,000,000
shares authorized 387,388
Class C Common Stock, $.10 par value, 100,000,000
shares authorized 17,737
Class D Common Stock, $.10 par value, 100,000,000
shares authorized 81,070
Paid-in capital in excess of par 65,660,880
Accumulated capital losses on investments--net (33,934,669)
Accumulated distributions in excess of capital gains
on investments--net (2,876,442)
Unrealized appreciation on investments--net 2,731,039
------------
Net assets $ 32,094,703
============
Net Asset Class A--Based on net assets of $1,733,951 and 276,996
Value: shares outstanding $ 6.26
============
Class B--Based on net assets of $24,193,325 and 3,873,875
shares outstanding $ 6.25
============
Class C--Based on net assets of $1,107,618 and 177,369
shares outstanding $ 6.24
============
Class D--Based on net assets of $5,059,809 and 810,699
shares outstanding $ 6.24
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended December 31, 1999
<S> <S> <C> <C>
Investment Income: Interest and discount earned $ 3,734,978
Expenses: Investment advisory fees $ 213,517
Account maintenance and distribution fees--Class B 204,856
Accounting services 98,374
Professional fees 78,676
Printing and shareholder reports 70,624
Registration fees 57,121
Transfer agent fees--Class B 50,805
Directors' fees and expenses 45,002
Custodian fees 32,492
Account maintenance fees--Class D 13,051
Account maintenance and distribution fees--Class C 10,275
Transfer agent fees--Class D 7,934
Transfer agent fees--Class A 2,693
Transfer agent fees--Class C 2,495
Pricing fees 985
Other 4,638
------------
Total expenses 893,538
------------
Investment income--net 2,841,440
------------
Realized & Realized loss on investments--net (1,021,167)
Unrealized Change in unrealized appreciation/depreciation on investments--net 5,160,451
Gain (Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 6,980,724
============
See Notes to Financial Statements.
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended
December 31,
Increase (Decrease) in Net Assets: 1999 1998
<S> <S> <C> <C>
Operations: Investment income--net $ 2,841,440 $ 6,501,860
Realized loss on investments and foreign currency
transactions--net (1,021,167) (33,355,834)
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 5,160,451 (2,495,358)
------------ ------------
Net increase (decrease) in net assets resulting from operations 6,980,724 (29,349,332)
------------ ------------
Dividends to Investment income--net:
Shareholders: Class A (154,183) (326,017)
Class B (2,147,225) (4,624,675)
Class C (100,010) (240,731)
Class D (440,022) (868,105)
Return of capital--net:
Class A -- (23,798)
Class B -- (337,591)
Class C -- (17,573)
Class D -- (63,370)
------------ ------------
Net decrease in net assets resulting from
dividends to shareholders (2,841,440) (6,501,860)
------------ ------------
Capital Share Net decrease in net assets derived from capital
Transactions: share transactions (15,452,808) (20,604,040)
------------ ------------
Net Assets: Total decrease in net assets (11,313,524) (56,455,232)
Beginning of year 43,408,227 99,863,459
------------ ------------
End of year $ 32,094,703 $ 43,408,227
============ ============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996++ 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 5.54 $ 9.60 $ 11.36 $ 9.70 $ 8.51
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .51 .76 .72 .97 .94
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .72 (4.06) (.54) 2.14 1.19
-------- -------- -------- -------- --------
Total from investment operations 1.23 (3.30) .18 3.11 2.13
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.51) (.71) (.72) (1.00) (.94)
In excess of investment income--net -- -- -- (.13) --
Return of capital--net -- (.05) -- -- --
Realized gain on investments--net -- -- (.93) (.32) --
In excess of realized gain on
investments--net -- -- (.29) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.51) (.76) (1.94) (1.45) (.94)
-------- -------- -------- -------- --------
Net asset value, end of year $ 6.26 $ 5.54 $ 9.60 $ 11.36 $ 9.70
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 23.12% (36.18%) 1.74% 33.64% 27.27%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding interest expense 1.85% 1.70% 1.38% 1.05% 1.20%
Net Assets: ======== ======== ======== ======== ========
Expenses 1.85% 2.66% 1.48% 1.32% 1.36%
======== ======== ======== ======== ========
Investment income--net 8.72% 9.59% 6.31% 8.97% 11.25%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 1,734 $ 1,988 $ 4,842 $ 28,136 $ 1,165
Data: ======== ======== ======== ======== ========
Portfolio turnover 164.23% 618.06% 942.74% 420.35% 127.17%
======== ======== ======== ======== ========
Leverage: Amount of reverse repurchase
agreements outstanding, end of year
(in thousands) -- -- -- $ 22,350 $ 10,265
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements outstanding during the
year (in thousands) -- $ 14,306 $ 3,185 $ 8,277 $ 2,640
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements per share during
the year -- $ 1.56 $ .20 $ .48 $ .20
======== ======== ======== ======== ========
<CAPTION>
Class B
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996++ 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 5.53 $ 9.57 $ 11.31 $ 9.65 $ 8.48
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .46 .70 .63 .88 .88
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .72 (4.04) (.52) 2.15 1.17
-------- -------- -------- -------- --------
Total from investment operations 1.18 (3.34) .11 3.03 2.05
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.46) (.65) (.63) (.93) (.88)
In excess of investment income--net -- -- -- (.12) --
Return of capital--net -- (.05) -- -- --
Realized gain on investments--net -- -- (.93) (.32) --
In excess of realized gain on
investments--net -- -- (.29) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.46) (.70) (1.85) (1.37) (.88)
-------- -------- -------- -------- --------
Net asset value, end of year $ 6.25 $ 5.53 $ 9.57 $ 11.31 $ 9.65
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 22.20% (36.60%) 1.12% 32.75% 26.10%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding interest expense 2.63% 2.21% 2.16% 1.83% 1.97%
Net Assets: ======== ======== ======== ======== ========
Expenses 2.63% 3.47% 2.26% 2.10% 2.13%
======== ======== ======== ======== ========
Investment income--net 7.86% 8.93% 5.76% 8.36% 10.40%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 24,193 $ 33,374 $ 78,733 $160,204 $103,465
Data: ======== ======== ======== ======== ========
Portfolio turnover 164.23% 618.06% 942.74% 420.35% 127.17%
======== ======== ======== ======== ========
Leverage: Amount of reverse repurchase agreements
outstanding, end of year
(in thousands) -- -- -- $ 22,350 $ 10,265
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements outstanding during the
year (in thousands) -- $ 14,306 $ 3,185 $ 8,277 $ 2,640
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements per share during
the year -- $ 1.56 $ .20 $ .48 $ .20
======== ======== ======== ======== ========
*Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class C
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996++ 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 5.53 $ 9.57 $ 11.31 $ 9.65 $ 8.47
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .46 .69 .63 .87 .87
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .71 (4.04) (.52) 2.15 1.18
-------- -------- -------- -------- --------
Total from investment operations 1.17 (3.35) .11 3.02 2.05
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.46) (.64) (.63) (.92) (.87)
In excess of investment income--net -- -- -- (.12) --
Return of capital--net -- (.05) -- -- --
Realized gain on investments--net -- -- (.93) (.32) --
In excess of realized gain on
investments--net -- -- (.29) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.46) (.69) (1.85) (1.36) (.87)
-------- -------- -------- -------- --------
Net asset value, end of year $ 6.24 $ 5.53 $ 9.57 $ 11.31 $ 9.65
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 21.94% (36.64%) 1.06% 32.66% 26.18%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding interest expense 2.68% 2.25% 2.23% 1.90% 2.05%
Net Assets: ======== ======== ======== ======== ========
Expenses 2.68% 3.52% 2.33% 2.17% 2.19%
======== ======== ======== ======== ========
Investment income--net 7.79% 8.85% 5.64% 8.17% 10.23%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 1,108 $ 1,730 $ 4,222 $ 11,436 $ 1,396
Data: ======== ======== ======== ======== ========
Portfolio turnover 164.23% 618.06% 942.74% 420.35% 127.17%
======== ======== ======== ======== ========
Leverage: Amount of reverse repurchase
agreements outstanding, end of year
(in thousands) -- -- -- $ 22,350 $ 10,265
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements outstanding during the
year (in thousands) -- $ 14,306 $ 3,185 $ 8,277 $ 2,640
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements per share during
the year -- $ 1.56 $ .20 $ .48 $ .20
======== ======== ======== ======== ========
<CAPTION>
Class D
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended December 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996++ 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 5.52 $ 9.57 $ 11.31 $ 9.65 $ 8.48
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .49 .74 .69 .95 .92
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .72 (4.05) (.52) 2.13 1.17
-------- -------- -------- -------- --------
Total from investment operations 1.21 (3.31) .17 3.08 2.09
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.49) (.69) (.69) (.97) (.92)
In excess of investment income--net -- -- -- (.13) --
Return of capital--net -- (.05) -- -- --
Realized gain on investments--net -- -- (.93) (.32) --
In excess of realized gain on
investments--net -- -- (.29) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.49) (.74) (1.91) (1.42) (.92)
-------- -------- -------- -------- --------
Net asset value, end of year $ 6.24 $ 5.52 $ 9.57 $ 11.31 $ 9.65
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 22.87% (36.37%) 1.65% 33.44% 26.75%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding interest expense 2.09% 1.84% 1.63% 1.31% 1.44%
Net Assets: ======== ======== ======== ======== ========
Expenses 2.09% 2.88% 1.73% 1.58% 1.60%
======== ======== ======== ======== ========
Investment income--net 8.43% 9.51% 6.30% 8.92% 10.85%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 5,060 $ 6,316 $ 12,066 $ 18,402 $ 14,169
Data: ======== ======== ======== ======== ========
Portfolio turnover 164.23% 618.06% 942.74% 420.35% 127.17%
======== ======== ======== ======== ========
Leverage: Amount of reverse repurchase
agreements outstanding, end of year
(in thousands) -- -- -- $ 22,350 $ 10,265
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements outstanding during the
year (in thousands) -- $ 14,306 $ 3,185 $ 8,277 $ 2,640
======== ======== ======== ======== ========
Average amount of reverse repurchase
agreements per share during
the year -- $ 1.56 $ .20 $ .48 $ .20
======== ======== ======== ======== ========
*Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Americas Income Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. The Fund's financial statements
are prepared in accordance with generally accepted accounting
principles, which may require the use of management accruals and
estimates. The Fund offers four classes of shares under the Merrill
Lynch Select Pricing SM System. Shares of Class A and Class D are
sold with a front-end sales charge. Shares of Class B and Class C
may be subject to a contingent deferred sales charge. All classes of
shares have identical voting, dividend, liquidation and other rights
and the same terms and conditions, except that Class B, Class C and
Class D Shares bear certain expenses related to the account
maintenance of such shares, and Class B and Class C Shares also bear
certain expenses related to the distribution of such shares. Each
class has exclusive voting rights with respect to matters relating
to its account maintenance and distribution expenditures. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of securities--Portfolio securities that are traded on
stock exchanges are valued at the last sale price on the exchange on
which such securities are traded, as of the close of business on the
day the securities are being valued or, lacking any sales, at the
last available bid price. Securities traded in the over-the-counter
market are valued at the last available bid price prior to the time
of valuation. In cases where securities are traded on more than one
exchange, the securities are valued on the exchange designated by or
under the authority of the Board of Directors as the primary market.
Securities that are traded both in the over-the-counter market and
on a stock exchange are valued according to the broadest and most
representative market. Options written or purchased are valued at
the last sale price in the case of exchange-traded options. In the
case of options traded in the over-the-counter market, valuation is
the last asked price (options written) or the last bid price
(options purchased). Short-term securities are valued at amortized
cost, which approximates market value. Other investments, including
futures contracts and related options, are stated at market value.
Securities and assets for which market value quotations are not
available are valued at their fair value as determined in good faith
by or under the direction of the Fund's Board
of Directors.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt and currency
markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on
operations is recorded from the date the Fund enters into such
contracts.
* Options--The Fund is authorized to write and purchase call and put
options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts as
a hedge against adverse changes in interest rates. A futures
contract is an agreement between two parties to buy and sell a
security for a set price on a future date. Upon entering into a
contract, the Fund deposits and maintains as collateral such initial
margin as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
(c) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
its shareholders. Therefore, no Federal income tax provision is
required. Under the applicable foreign tax law, a withholding tax
may be imposed on interest and capital gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
discount) is recognized on the accrual basis. Realized gains and
losses on security transactions are determined on the identified
cost basis.
(f) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(g) Dividends and distributions--Dividends from net investment
income are declared daily and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates. Distributions in excess
of realized capital gains are due primarily to differing tax
treatments for post-October losses. A portion of the net investment
income dividends paid by the Fund for the year ended December 31,
1998 is characterized as a return of capital.
(h) Short sales--When the Fund engages in a short sale, an amount
equal to the proceeds received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the market value of the
short sale. The Fund maintains a segregated account of securities as
collateral for the short sales. The Fund is exposed to market risk
based on the amount, if any, that the market value of the stock ex-
ceeds the market value of the securities in the segregated account.
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM"). The general partner
of MLAM is Princeton Services, Inc. ("PSI"), an indirect wholly-
owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is
the limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or the "Distributor"), a division of Princeton
Funds Distributor, Inc. ("PFD"), which is a wholly-owned subsidiary
of Merrill Lynch Group, Inc.
MLAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operation of the Fund. For such
services, the Fund pays a monthly fee of .60%, on an annual basis,
of the average daily value of the Fund's net assets plus the
principal amount of borrowings incurred by the Fund for leverage
purposes.
Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Company Act of 1940, the Fund
pays the Distributor ongoing account maintenance and distribution
fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
Account
Maintenance Distribution
Fee Fee
Class B .25% .50%
Class C .25% .55%
Class D .25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorported ("MLPF&S"), a subsidiary of ML &
Co., also provides account maintenance and distribution services to
the Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the year ended December 31, 1999, MLFD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Fund's Class D Shares as follows:
MLFD MLPF&S
Class D $282 $2,476
For the year ended December 31, 1999, MLPF&S received contingent
deferred sales charges of $89,552 and $2,868 relating to
transactions in Class B and Class C Shares, respectively.
For the year ended December 31, 1999, the Fund paid Merrill Lynch
Security Pricing Service, an affiliate of MLPF&S, $568 for security
price quotations to compute the net asset value of the Fund.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLAM, PSI, MLFD, FDS, and/or ML & Co.
Merrill Lynch Americas Income Fund, Inc., December 31, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended December 31, 1999 were $56,105,837 and
$71,156,394, respectively.
Net realized losses for the year ended December 31, 1999 and net
unrealized gains as of December 31, 1999 were as follows:
Realized Unrealized
Losses Gains
Long-term investments $ (1,021,167) $ 2,731,039
------------ ------------
Total $ (1,021,167) $ 2,731,039
============ ============
As of December 31, 1999, net unrealized appreciation for Federal
income tax purposes aggregated $2,582,458, of which $2,726,012
related to appreciated securities and $143,554 related to
depreciated securities. At December 31, 1999, the aggregate cost of
investments for Federal income tax purposes was $28,760,435.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $15,452,808 and $20,604,040 for the years ended December 31,
1999 and December 31, 1998, respectively.
Transactions in shares of capital were as follows:
Class A Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 305,804 $ 1,763,062
Shares issued to shareholders
in reinvestment of dividends 9,817 57,367
------------ ------------
Total issued 315,621 1,820,429
Shares redeemed (397,546) (2,259,561)
------------ ------------
Net decrease (81,925) $ (439,132)
============ ============
Class A Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 637,752 $ 4,323,664
Shares issued to shareholders
in reinvestment of dividends 25,916 212,222
------------ ------------
Total issued 663,668 4,535,886
Shares redeemed (809,108) (5,986,803)
------------ ------------
Net decrease (145,440) $ (1,450,917)
============ ============
Class B Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 373,504 $ 2,128,323
Shares issued to shareholders
in reinvestment of dividends 156,191 910,646
------------ ------------
Total issued 529,695 3,038,969
Automatic conversion of shares (18,360) (108,152)
Shares redeemed (2,676,890) (15,299,662)
------------ ------------
Net decrease (2,165,555) $(12,368,845)
============ ============
Class B Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 1,507,682 $ 9,930,127
Shares issued to shareholders
in reinvestment of dividends 277,781 2,120,932
------------ ------------
Total issued 1,785,463 12,051,059
Automatic conversion of shares (19,336) (160,511)
Shares redeemed (3,952,202) (29,827,935)
------------ ------------
Net decrease (2,186,075) $(17,937,387)
============ ============
Class C Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 21,499 $ 128,261
Shares issued to shareholders
in reinvestment of dividends 5,862 34,056
------------ ------------
Total issued 27,361 162,317
Shares redeemed (163,041) (927,276)
------------ ------------
Net decrease (135,680) $ (764,959)
============ ============
Class C Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 122,254 $ 792,384
Shares issued to shareholders
in reinvestment of dividends 14,160 108,908
------------ ------------
Total issued 136,414 901,292
Shares redeemed (264,464) (2,036,673)
------------ ------------
Net decrease (128,050) $ (1,135,381)
============ ============
Class D Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 63,666 $ 373,262
Automatic conversion of shares 18,373 108,152
Shares issued to shareholders
in reinvestment of dividends 29,171 170,232
------------ ------------
Total issued 111,210 651,646
Shares redeemed (444,234) (2,531,518)
------------ ------------
Net decrease (333,024) $ (1,879,872)
============ ============
Class D Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 530,485 $ 4,307,175
Automatic conversion of shares 19,190 160,511
Shares issued to shareholders
in reinvestment of dividends 51,880 396,219
------------ ------------
Total issued 601,555 4,863,905
Shares redeemed (719,080) (4,944,260)
------------ ------------
Net decrease (117,525) $ (80,355)
============ ============
5. Capital Loss Carryforward:
At December 31, 1999, the Fund had a net capital loss carryforward
of approximately $36,637,000, of which $11,724,000 expires in 2006
and $24,913,000 expires in 2007. This amount will be available to
offset like amounts of any future taxable gains.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Americas Income Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Americas Income Fund, Inc. as of December 31, 1999, the related
statements of operations and cash flows for the year then ended,
changes in net assets for each of the years in the two-year period
then ended and the financial highlights for each of the years in the
five-year period then ended. These financial statements and the
financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at December
31, 1999 by correspondence with the custodian and broker. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Americas Income Fund, Inc. as of December 31, 1999,
the results of its operations, the changes in its net assets, its
cash flows and the financial highlights for the respective stated
periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
February 11, 2000
</AUDIT-REPORT>
