<PAGE>
MORGAN STANLEY
AFRICA INVESTMENT FUND, INC.
---------------------------------------------
OFFICERS AND DIRECTORS
Barton M. Biggs John A. Levin
CHAIRMAN OF THE BOARD DIRECTOR
OF DIRECTORS William G. Morton, Jr.
Frederick B. Whittemore DIRECTOR
VICE-CHAIRMAN OF THE BOARD James W. Grisham
OF DIRECTORS VICE PRESIDENT
Warren J. Olsen Harold J. Schaaff, Jr.
PRESIDENT AND DIRECTOR VICE PRESIDENT
Peter J. Chase Joseph P. Stadler
DIRECTOR VICE PRESIDENT
John W. Croghan Valerie Y. Lewis
DIRECTOR SECRETARY
David B. Gill James R. Rooney
DIRECTOR TREASURER
Graham E. Jones Joanna M. Haigney
DIRECTOR ASSISTANT TREASURER
---------------------------------------------
INVESTMENT ADVISER
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
--------------------------------------------------------
ADMINISTRATOR
The Chase Manhattan Bank, N.A.
73 Tremont Street
Boston, Massachusetts 02108
--------------------------------------------------------
CUSTODIANS
Morgan Stanley Trust Company (International)
One Pierrepont Plaza
Brooklyn, New York 11201
The Chase Manhattan Bank, N.A. (Domestic)
770 Broadway
New York, New York 10003
--------------------------------------------------------
SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
(800) 278-4353
--------------------------------------------------------
LEGAL COUNSEL
Rogers & Wells
200 Park Avenue
New York, New York 10166
--------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
--------------------------------------------------------
For additional Fund information, including the Fund's net asset value per share
and information regarding the investments comprising the Fund's portfolio,
please call 1-800-221-6726.
---------
MORGAN STANLEY
AFRICA INVESTMENT
FUND, INC.
---------
FIRST QUARTER REPORT
MARCH 31, 1996
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
<PAGE>
LETTER TO SHAREHOLDERS
- --------
For the three months ended March 31, 1996, the Morgan Stanley Africa Investment
Fund, Inc. (the "Fund") had a total return, based on net asset value per share,
of -0.59%. For the period since the Fund's commencement of operations on
February 14, 1994, the Fund's total return based on net asset value per share is
34.63%. On March 29, 1996, the closing price of the Fund's shares on the New
York Stock Exchange was $13 5/8, representing a 19.6% discount to the Fund's net
asset value per share.
The reduction in the net asset value for the period was primarily due to the
Fund's exposure to the South African currency, the rand. For the quarter ended
March 31, 1996, the rand depreciated by 9.1% and the MSCI South Africa Index
declined by 2.1%. The Fund's performance since inception has been strongly
supported by its holdings of South African securities. However, the first
quarter of 1996 was the first period in which the Fund's overall performance was
negatively impacted by its exposure to South Africa which, represents
approximately 65% of the portfolio. On the positive front, the Fund's Zimbabwe
holdings which amount to 6% of the portfolio benefited from a 20.2% appreciation
in the Zimbabwe stock market as sentiment continued to improve due to the recent
heavy rainfall which should result in GDP growth in excess of 7% in 1996. The
debt holdings in Algeria, Morocco and Nigeria which represent approximately 9%
of the Fund's net assets also provided total returns ranging between 3.7% and
15.7% during the first quarter of 1996.
SOUTH AFRICA
The South African (SA) economy and stock market have performed extremely well
since the April 1994 elections in which Nelson Mandela's African National
Congress (ANC) was swept into power as the leader of the Government of National
Unity. In dollar terms, the stock market was up 29% and 17% in 1994 and 1995,
respectively. Inflation has declined to a 23-year low of 6.4% and the budget
deficit/GDP at 6% is down from over 8% in 1993. GDP growth for 1996 is expected
to be 4% and real interest rates of over 8% should decline late in the second
half of 1996.
However, the first quarter of 1996 has been volatile due to a 9.1% depreciation
in the currency, brought about by unsubstantiated rumors about Mandela's health
and the complete removal of exchange controls, as well as the recent resignation
of the Chris Liebenberg, the minister of finance.
CURRENCY
The SA rand which had been very stable since March 1995 has recently been
experiencing extreme volatility. The currency depreciation began on February 16,
1996 when three rumors began to go through the market : 1) Nelson Mandela was
seriously ill; 2) SA was going to remove exchange controls and; 3) the currency
was 7-10% overvalued. By the middle of February the currency had begun to
stabilize in the 3.90 to 4.00 range to the dollar when Chris Liebenberg, the
minister of finance announced his resignation.
In order to dispel the rumors, Nelson Mandela went through three days of
intensive physical tests which showed that he was in good shape for a 77 year
old. Both the finance ministry and the Reserve Bank have denied that SA will
remove exchange controls all at once particularly since the country has only six
weeks of import cover. The finance ministry continues to state that it is
committed to 'gradual' removal of exchange controls. In 1995, the rand
appreciated in real terms by approximately 2% vis a vis its major trading
partners. The inflation differential between SA and its trading partners for
1995 was about 5.5% and therefore the currency was clearly overvalued. The
correction in the currency now appears to have gone too far but given the
country's limited foreign exchange reserves we
2
<PAGE>
do expect the volatility to continue until the market has better understood the
new finance minister's long term fiscal policies.
POLITICS
With the resignation of Chris Liebenberg, as minister of finance, and the
appointment of Trevor Manuel to replace him, SA now has its third finance
minister since the government came to power in May 1994. Although this is a high
turnover rate in the finance ministry, Manuel is the first member of the ANC and
the first non-white to head this department. Manuel's predecessors, Derek Keys
and Chris Liebenberg, had extensive experience as CEO's of two large
corporations in the private sector and had been appointed in order to instill
fiscal confidence among domestic and international investors. Keys was from the
National Party and had held the same post in the prior government while
Liebenberg, an independent, had been appointed by Mandela until a high ranking
ANC official (Manuel) had obtained enough experience prior to being appointed to
the post.
Manuel has a degree in engineering and is well regarded by the business
community for his handling of the Ministry of Trade and Industry. He was
responsible for SA becoming a signatory of GATT, having made tough decisions
such as reduction of tariffs in industries with strong labor unions.
MONETARY POLICY
The independent SA Reserve Bank under the leadership of its governor, Chris
Stals has performed exceptionally in controlling inflation which had reached a
high of over 20% in 1985. Inflation, now at a 23-year low of 6.4%, will pick-up
due to the recent currency depreciation. However, the long-term goal of the
Reserve Bank is to maintain the value of the currency by keeping inflation in
check. Stals is so committed to pursuing this policy that SA now has the highest
real interest rates in the world.
OUTLOOK
For the remainder of the year we expect the market to rally from its recent
correction. The performance will be underpinned by earnings growth of 20%,
declining interest rates in the latter part of 1996 and strong real growth in
the economy. We have been focusing our holdings on blue chip companies which are
either good hedges against currency depreciation or are at very attractive P/E
to growth rate multiples versus the market. On a valuation basis the market now
sells at 13x 1996 earnings and is supported by a 2.5% dividend yield.
BOTSWANA
During the quarter the Fund initiated a position in Botswana by investing in
Sechaba, the highest capitalized company on the Botswana Stock Exchange with a
market capitalization of $100 million. Sechaba is the only brewery in Botswana,
and is 40% owned and managed by South African Breweries. The investment was made
at very attractive prospective valuation levels of 6.2x earnings, 5.5x cash
earnings, 10% dividend yield and a price to book value of 1.0x. Earnings are
forecast to increase by over 20% per annum for the balance of the decade as
Botswana's young population (60% under the age of 19 years) increases its
consumption of beverages.
Botswana is the world's largest producer of diamonds which amount to almost 80%
of exports and 40% of GDP. The country has foreign exchange reserves of $4.7
billion which represent 2 years of import cover and GDP per capita at $2,800 is
one of the highest in Africa. We expect GDP growth of 7% in 1996 driven by
higher diamond sales as a result of the recently concluded agreement between the
diamond cartel and Russia, increasing agricultural output from good rains and a
growing contribution from tourism.
Our outlook for Africa remains positive as a large number of African markets
sell at extremely
3
<PAGE>
attractive multiples compared to other emerging markets. We continue to pursue
undervalued investments across the continent; as of March 31, 1996, the Morgan
Stanley Africa Investment Fund held investments in 10 countries in Africa.
Sincerely,
[SIGNATURE]
Warren J. Olsen
PRESIDENT AND DIRECTOR
[SIGNATURE]
Marianne L. Hay
SENIOR PORTFOLIO MANAGER
[SIGNATURE]
Jaideep Khanna
PORTFOLIO MANAGER
April 25, 1996
4
<PAGE>
Morgan Stanley Africa Investment Fund, Inc.
Investment Summary as of March 31, 1996
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HISTORICAL
INFORMATION (UNAUDITED)
TOTAL RETURN (%)
--------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2)
------------------------ ------------------------
AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL
------------------------ ------------------------
<S> <C> <C> <C> <C>
FISCAL YEAR TO DATE 5.83% -- -0.59% --
ONE YEAR 26.49 26.49% 23.27 23.27%
SINCE INCEPTION* 8.22 3.79 34.63 15.01
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION (2)
A BAR CHART REFLECTING THE DATA BELOW IS REFLECTED HERE.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31:
<S> <C> <C> <C>
3 Months
1994* 1995 Ended March 31, 1996 (Unaudited)
Net Asset Value Per Share $14.43 $17.05 $16.95
Market Value Per Share $11.38 $12.88 $13.63
Premium/Discount -21.1% -24.5% -19.6%
Income Dividends $0.54 $0.96 -
Capital Gains Distributions - $0.01 -
Fund Total Return (2) 7.34% 26.14% -0.59%
</TABLE>
(1) Assumes dividends and distributions, if any, were reinvested.
(2) Total investment return based on per share net asset value reflects the
effects of changes in net asset value on the performance of the Fund during
each period, and assumes dividends and distributions, if any, were
reinvested. These percentages are not an indication of the performance of a
shareholder's investment in the Fund based on market value due to
differences between the market price of the stock and the net asset value
per share of the Fund.
* The Fund commenced operations on February 14, 1994.
5
<PAGE>
Morgan Stanley Africa Investment Fund, Inc.
Portfolio Summary as of March 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO INVESTMENTS DIVERSIFICATION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 79.9%
Debt Securities 15.8%
Short-Term Investments 4.3%
</TABLE>
- --------------------------------------------------------------------------------
SECTORS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Banking 11.9%
Beverages & Tobacco 4.8%
Chemicals 2.9%
Electrical & Electronics 5.2%
Food & Household Products 3.0%
Government Bonds 3.1%
Leisure & Tourism 4.2%
Loan Agreement 10.9%
Merchandising 4.6%
Multi-Industry 28.2%
Other 21.2%
</TABLE>
- --------------------------------------------------------------------------------
COUNTRY WEIGHTINGS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
South Africa 65.1%
Morocco 10.1%
Zimbabwe 5.7%
Mauritius 3.3%
Nigeria 3.2%
United Kingdom 3.0%
Botswana 3.0%
Ivory Coast 2.4%
Egypt 2.2%
Ghana 1.4%
Algeria 1.0%
Other -0.4%
</TABLE>
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
-------------
<C> <S> <C>
1. Barlow Ltd. 4.6%
2. Kingdom of Morocco Restructuring and
Consolidation Agreement 'A" 6.59375%,
1/1/09 4.3
3. Gencor Ltd. 3.3
4. Amalgamated Banks of South Africa 3.2
5. Government of Nigeria 3.2
<CAPTION>
PERCENT OF
NET ASSETS
-------------
<C> <S> <C>
6. Nedcor Ltd. 3.1%
7. Republic of South Africa 3.1
8. Lonrho plc 3.0
9. SNI Maroc 2.7
10. Bidvest Group Ltd. 2.5
-----
33.0%
-----
-----
</TABLE>
- --------------------------------------------------------------------------------
6
<PAGE>
INVESTMENTS (UNAUDITED)
- ---------
MARCH 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- -----------------------------------------------------------------
- -------------
AFRICAN COMMON STOCKS (77.6%)
(Unless otherwise noted)
- --------------------------------------------------
- ----------
BOTSWANA (1.5%)
BEVERAGES & TOBACCO
Sechaba Investment Co. 5,000,000 U.S.$ 3,930
--------------
- -----------------------------------------------------------------
- -------------
EGYPT (2.1%)
BANKING
Commercial International Bank 19,000 2,466
--------------
BEVERAGES & TOBACCO
Eastern Tobacco 54,450 606
--------------
BUILDING MATERIALS & COMPONENTS
Ameriyah Cement Co. 30,000 395
Helwan Portland Cement 99,800 935
Torah Portland Cement Co. 35,795 450
--------------
1,780
--------------
CHEMICALS
Paint & Chemical Industries 953 175
--------------
FOOD & HOUSEHOLD PRODUCTS
North Cairo Flour Mills 23,490 577
--------------
5,604
--------------
- -----------------------------------------------------------------
- -------------
GHANA (1.4%)
BANKING
Standard Chartered Bank 555,000 1,903
--------------
BEVERAGES & TOBACCO
Guiness Ghana 2,909,458 433
Kumasi Breweries 336,000 129
Pioneer Tobacco Co., Ltd. 2,897,600 235
--------------
797
--------------
FINANCIAL SERVICES
Home Finance Co. 1,620,000 117
--------------
FOOD & HOUSEHOLD PRODUCTS
Unilever 1,575,800 782
--------------
MANUFACTURING
Ghana Pioneer Aluminum Factory 1,043,400 98
--------------
3,697
--------------
- -----------------------------------------------------------------
- -------------
MAURITIUS (3.1%)
BANKING
Mauritius Commercial Bank 302,915 1,184
State Bank of Mauritius 11,106,342 4,751
--------------
5,935
--------------
FOOD & HOUSEHOLD PRODUCTS
Happy World Foods, Ltd. 600,000 475
--------------
MULTI-INDUSTRY
Mon Tressor Desert 66,368 133
Rogers & Co., Ltd. 279,663 1,507
--------------
1,640
--------------
8,050
--------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
MOROCCO (5.8%)
BANKING
BMCE (Bonus) 17,142 U.S.$ 704
BMCE 60,000 2,464
Wafabank 30,000 1,326
--------------
4,494
--------------
ELECTRICAL & ELECTRONICS
CGE Maroc SA 19,400 1,484
--------------
MULTI-INDUSTRY
Groupe Ona 47,500 1,962
SNI Maroc 134,640 7,174
--------------
9,136
--------------
15,114
--------------
- -----------------------------------------------------------------
- -------------
SOUTH AFRICA (58.0%)
APPLIANCES & HOUSEHOLD DURABLES
Ellerine Holdings Ltd. 268,881 1,623
JD Group Ltd. 451,500 2,584
--------------
4,207
--------------
BANKING
Amalgamated Banks of South Africa 1,580,764 8,351
Nedcor Ltd. 119,500 1,819
Nedcor Ltd. GDR 386,521 5,894
Nedcor Ltd. (Warrants) expiring
9/30/97 95,000 368
--------------
16,432
--------------
BEVERAGES & TOBACCO
South African Breweries Ltd. 55,000 1,743
--------------
BROADCASTING & PUBLISHING
Argus Newspapers 2,200 11
Omni Media Corp. 134,628 2,540
Perskor Beleggings Beperk 14,300 148
--------------
2,699
--------------
CHEMICALS
Polfin Ltd. 534,946 1,034
SASOL Ltd. 641,970 6,266
--------------
7,300
--------------
CONSTRUCTION & HOUSING
Concor Ltd. 226,600 1,454
LTA Ltd. 239,200 1,384
--------------
2,838
--------------
ELECTRICAL & ELECTRONICS
Allied Electronics Corp., Ltd. 720,000 1,540
Dimension Data Holdings Ltd. 307,092 4,172
Reunert Ltd. 700,000 3,962
Siltek Ltd. 140,000 757
Spescom Electronics, Ltd. 1,000,000 956
Voltex Holdings Ltd. 867,526 753
--------------
12,140
--------------
ENERGY SOURCES
Engen Ltd. 210,000 1,488
Engen Ltd. (Rights) 233,750 11
Trans Natal Coal Corp., Ltd. 360,000 2,627
--------------
4,126
--------------
- -----------------------------------------------------------------
- -------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------
- ------------
<S> <C> <C>
SOUTH AFRICA (CONTINUED)
FOOD & HOUSEHOLD PRODUCTS
Premier Group Holdings Ltd. 2,420,523 U.S.$ 3,927
--------------
FOREST PRODUCTS & PAPER
Nampak Ltd. 1,165,700 5,719
Sappi Ltd. 95,000 1,302
--------------
7,021
--------------
INSURANCE
Fedsure Holdings Ltd. 170,000 1,294
Sage Group Ltd. 1,005,000 5,562
--------------
6,856
--------------
LEISURE & TOURISM
Kersaf Investments Ltd. 380,000 4,302
Leisurenet Ltd. 114,510 72
Servgro International Ltd. 547,400 2,926
Sun International (South Africa) Ltd. 1,928,571 2,596
--------------
9,896
--------------
MERCHANDISING
Foschini Ltd. 325,500 2,129
Foschini (Lewis) Ltd. 1,140,000 2,581
Houswares Group Ltd. 750,000 1,792
Metro Cash and Carry Ltd. 650,000 2,821
Pepkor Ltd. ADR 14,700 159
Specialty Stores Ltd. 'N' 1,500,000 2,038
Storeco, Ltd. 'N' 301,230 417
--------------
11,937
--------------
METALS -- NON-FERROUS
Impala Platinum Holdings Ltd. 60,000 996
Potgietersrust Platinums Ltd. 307,549 1,721
Rustenburg Platinum Holdings Ltd. 61,018 1,075
--------------
3,792
--------------
METALS -- STEEL
Iscor Ltd. 4,845,500 4,583
--------------
MULTI-INDUSTRY
Anglo American Industrial Corp. 121,000 5,814
Anglovaal Industries Ltd. 488,000 3,253
Barlow Ltd. 945,700 12,134
Bidvest Group Ltd. 1,010,838 6,612
Corporate Africa 2,500,000 1,006
Corporate Africa (Preferred) 12,500,000 5,032
Gencor Ltd. 2,200,300 8,691
Murray & Roberts Holdings Ltd. 500,000 2,704
Rembrandt Group Ltd. 240,000 2,189
Safmarine and Rennies Holdings Ltd. 600,000 1,849
Tiger Oats Ltd. 200,000 3,119
--------------
52,403
--------------
151,900
--------------
- -----------------------------------------------------------------
- -------------
ZIMBABWE (5.7%)
BEVERAGES & TOBACCO
Delta Corp., Ltd. 2,435,000 5,524
--------------
BUILDING MATERIALS & COMPONENTS
PG Industries 390,500 225
Portland Holdings Ltd. 520,000 531
--------------
756
--------------
ENERGY SOURCES
Wankie Colliery Co., Ltd. 5,622,900 1,421
--------------
FINANCIAL SERVICES
Northchart Investment Ltd. 874,880 767
--------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
VALUE
SHARES (000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
FOOD & HOUSEHOLD PRODUCTS
Colcom Holdings 2,250,000 U.S.$ 557
Eastern Highlands 2,100,000 249
Hippo Valley Estates Ltd. 1,900,000 1,342
--------------
2,148
--------------
LEISURE & TOURISM
Zimbabwe Sun 3,538,135 1,122
--------------
METALS-NON-FERROUS
Bindura Nickel Corp. Ltd. 375,000 493
--------------
MULTI-INDUSTRY
TA Holdings Ltd. 7,700,000 1,111
Trans Zambezi Industries Ltd. 627,482 973
TSL Ltd. 2,150,000 693
--------------
2,777
--------------
15,008
--------------
- -----------------------------------------------------------------
- -------------
TOTAL AFRICAN COMMON STOCKS
(Cost U.S. $168,361) 203,303
--------------
- -----------------------------------------------------------------
- -------------
OTHER COMMON STOCK (3.0%)
- -----------------------------------------------------------------
- -------------
UNITED KINGDOM (3.0%)
MULTI-INDUSTRY
Lonrho plc 2,396,310 7,827
--------------
- -----------------------------------------------------------------
- -------------
TOTAL OTHER COMMON STOCK
(Cost $5,529) 7,827
--------------
- -----------------------------------------------------------------
- -------------
<CAPTION>
FACE
AMOUNT
(000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
DEBT INSTRUMENTS (16.0%)
- ---------------------------------------------------------
- ------------
ALGERIA (1.0%)
LOAN AGREEMENTS
+Algeria Reprofiled Loan Agreement 'A'
1992 7.52%, 3/4/00 U.S.$ 5,000 2,725
--------------
- -----------------------------------------------------------------
- -------------
IVORY COAST (2.4%)
LOAN AGREEMENTS
Republic Ivory Coast Syndicated Loan FRF 168,857 6,289
--------------
- -----------------------------------------------------------------
- -------------
MOROCCO (4.3%)
LOAN AGREEMENTS
Kingdom of Morocco
Restructuring and Consolidation
Agreement 'A' 6.59375%, 1/1/09
(Participation: Bankers Trust,
Banque Paribas, Lehman Brothers,
Merrill Lynch, Salomon Brothers) U.S.$ 16,000 11,140
--------------
- -----------------------------------------------------------------
- -------------
NIGERIA (3.2%)
LOAN AGREEMENTS
Central Bank of Nigeria Promissory
Notes, 5.24230% 01/05/10 5.242%,
1/5/10 20,000 8,350
--------------
- -----------------------------------------------------------------
- -------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
<S> <C> <C>
- -----------------------------------------------------------------
- -------------
SOUTH AFRICA (5.1%)
GOVERNMENT BONDS
Republic of South Africa
Series 147, 11.50%, 5/30/00 ZAR 3,750 U.S.$ 849
Series 150, 12.00%, 2/28/05 10,350 2,217
Series 153, 13.00%, 8/31/10 9,300 2,038
Series 162, 12.50%, 1/15/02 8,700 1,981
Series 175, 9.00%, 10/15/02 3,000 567
Series 177, 9.50%, 5/15/07 2,250 393
--------------
8,045
--------------
INSURANCE
Liberty Life Strategic Investments
Ltd. (Convertible) 6.50%, 9/30/04 U.S.$ 4,000 5,320
--------------
13,365
--------------
- -----------------------------------------------------------------
- -------------
TOTAL DEBT INSTRUMENTS
(Cost U.S. $44,396) 41,869
--------------
- -----------------------------------------------------------------
- -------------
SHORT-TERM INVESTMENT (0.5%)
- ---------------------------------------------------------
- ------------
UNITED STATES (0.5%)
REPURCHASE AGREEMENT
The Chase Manhattan Bank, N.A., 5.15%,
dated 3/29/96, due 4/1/96, to be
repurchased at U.S.$1,362,
collateralized by U.S.$915 United
States Treasury Bonds 11.25%, due
2/15/15, valued at U.S.$1,392
(Cost $1,361) 1,361 1,361
--------------
- -----------------------------------------------------------------
- -------------
FOREIGN CURRENCY ON DEPOSIT
WITH CUSTODIAN (3.8%)
Botswana Pula BWP 12,000,000 3,930
Egyptian Pound EGP 1,408,838 412
Mauritius Rupee MUR 9,551,100 504
South African Rand ZAR 20,299,246 5,107
--------------
(Cost U.S. $10,066) 9,953
--------------
- -----------------------------------------------------------------
- -------------
</TABLE>
<TABLE>
<CAPTION>
AMOUNT AMOUNT
(000) (000)
<S> <C> <C>
- ---------------------------------------------------------
- ------------
TOTAL INVESTMENTS (100.9%)
(Cost U.S. $229,713) U.S.$264,313
--------------
- -----------------------------------------------------------------
- -------------
OTHER ASSETS AND LIABILITIES (-0.9%)
Other Assets U.S.$ 2,928
Liabilities (5,354) (2,426)
--------------- --------------
- -----------------------------------------------------------------
- -------------
NET ASSETS (100.0%)
Applicable to 15,448,477 issued and
outstanding U.S. $0.01 par value
shares (100,000,000 shares
authorized) U.S.$ 261,887
--------------
--------------
- -----------------------------------------------------------------
- -------------
NET ASSET VALUE PER SHARE U.S.$ 16.95
--------------
--------------
- -----------------------------------------------------------------
- -------------
</TABLE>
+ -- Variable/floating rate security-rate disclosed is as of March 31,1996.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
9
