<PAGE>
MORGAN STANLEY
AFRICA INVESTMENT FUND, INC.
- -----------------------------------------
DIRECTORS AND OFFICERS
Barton M. Biggs William G. Morton, Jr.
CHAIRMAN OF THE BOARD DIRECTOR
OF DIRECTORS James W. Grisham
Warren J. Olsen VICE PRESIDENT
PRESIDENT AND DIRECTOR Michael F. Klein
Peter J. Chase VICE PRESIDENT
DIRECTOR Harold J. Schaaff, Jr.
John W. Croghan VICE PRESIDENT
DIRECTOR Joseph P. Stadler
David B. Gill VICE PRESIDENT
DIRECTOR Valerie Y. Lewis
Graham E. Jones SECRETARY
DIRECTOR James R. Rooney
John A. Levin TREASURER
DIRECTOR Belinda A. Brady
ASSISTANT TREASURER
- -----------------------------------------
INVESTMENT ADVISER
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
- ---------------------------------------------------
ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
- ---------------------------------------------------
CUSTODIANS
Morgan Stanley Trust Company
One Pierrepont Plaza
Brooklyn, New York 11201
The Chase Manhattan Bank
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, 1997
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
<PAGE>
LETTER TO SHAREHOLDERS
- --------
For the three months ended March 31, 1997, the Morgan Stanley Africa Investment
Fund, Inc. (the "Fund") had a total return, based on net asset value per share,
of 20.40%. For the one year ended March 31, 1997, the Fund had a total return,
based on net asset value per share, of 31.58%. For the period since the Fund's
commencement of operations on February 14, 1994 through March 31, 1997, the
Fund's total return, based on net asset value per share, was 77.14%. On March
31, 1997, the closing price of the Fund's shares on the New York Stock Exchange
was $16.75, representing a 17.5% discount to the Fund's net asset value per
share.
The first quarter of 1997 was the best in terms of quarterly performance for the
Fund since it's inception in February 1994. Once again, as in 1996, Zimbabwe and
Egypt were the main drivers of the strong performance. At the end of the first
quarter, Zimbabwe and Egypt cumulatively represented over 40% of the Fund's net
assets and appreciated in excess of 35% each.
ZIMBABWE
The Zimbabwean economy grew by 8.1% in 1996 as a result of declining inflation
and interest rates and from record agricultural harvests. Agricultural output
increased by over 35% as a result of the widespread rainfall received over the
past year. Most of the dams across the country are now at capacity and will be
able to meet the country's water requirements for the next two years. The stock
market was a direct beneficiary of these improving fundamentals and the IFC
Zimbabwe Index appreciated by 72% in 1996 and a further 17% in the first quarter
of 1997.
The government provided further support to the stock market by implementing a
number of investor friendly changes. These included making dual-listed shares,
shares listed on the Harare Stock Exchange (HSE) and a foreign stock exchange,
fully transferable from the foreign stock exchange into HSE and, increasing
foreign ownership limits from 35% to 40% of listed companies.
Looking ahead, the next couple of years will be critical for the government to
deliver on its promises of reducing the fiscal deficit, increasing
privatizations and further opening up the economy. With economic momentum on its
side, this is the ideal time for the government to control its spending and, to
help reduce the private sector's cost of borrowing. Presently, the country's
deficit to GDP stands at an unacceptable 10.1% and is leading to low levels of
private sector investment. It appears the government is serious about tackling
the fiscal problem and we will be actively monitoring the situation to see if
this is indeed the case. The government has already put ZISCO the country's iron
and steel producer up for sale and is in the process of selling off the Dairy
Marketing Board to a strategic foreign investor.
With substantial water resources, improving macro-economic fundamentals, and a
recovering manufacturing sector, the country is expected to deliver sustainable
GDP growth in excess of 5% per annum till the end of the century. The HSE trades
at an attractive 13 times one year prospective multiple with earnings forecast
to grow by 15% in real terms. The Fund's portfolio is well positioned as it is
mainly concentrated in the consumer sector which is expected to be the primary
beneficiary of rising disposable income from a strong economy.
EGYPT
The Cairo Stock Exchange appreciated by 36% during the first quarter of 1997.
Compared to 1996, when western investors dominated and pushed the market higher,
the first quarter performance was driven by local and regional investors. The
Egyptian authorities have continued to improve the disclosure and operation of
the stock exchange by providing more detailed daily reports on exchange
activities and creating new, more efficient settlement procedures.
The country's macroeconomic situation remains attractive with 1997 GDP growth
expected to be around 5.5%, inflation at 6.5% and a budget deficit of 1.4% of
GDP. The strength in the stock market over the past year has led sectors such as
2
<PAGE>
banking to become more fully valued. However, sectors such as cement and flour
milling remain undervalued and are forecast to experience sustainable earnings
growth into the near future. Investment flows remain strong in the equity market
as interest rates remain below 10% and as new dedicated Egyptian funds continue
to be raised. Further, the earnings momentum remains strong with earnings
expected to increase by 18% in 1997 and 20% in 1998. The market currently trades
at 13.5 times 1997 forecast earnings and is supported by a dividend yield of
4.5%.
SOUTH AFRICA
The MSCI South Africa Index appreciated by 13.4% during the first quarter of
1997. The performance was driven by a significant change in investor sentiment
compared to 1996 when the Index declined by 20.1%. During the quarter the
currency appreciated by 5.5% driven by major foreign portfolio inflows in the
fixed income and equity markets. Net inflows for the first quarter into the
fixed income and equity markets amounted to approximately $1.4 billion and $770
million, respectively.
The turnaround in sentiment was driven by a realization that the currency
depreciation of 1996 may have been overdone and by global fixed income managers
searching for high real yields. At the beginning of the year, South African
bonds were yielding over 16%, or about 7% in real terms. These real yields are
now among the highest in the world particularly since the major rally in
emerging market debt in 1996. We expect the inflows into South African bonds to
continue and forecast the rates to decline to around the 14% level by year end.
The government's continued conservative monetary and fiscal policies also
provided strong support to the improving market sentiment. The deficit for the
fiscal year ended March 1997 came in on target at 5.1% of GDP and is expected to
decline to 4.0% in the current year. Some highlights of the budget include a
reduction in expenditure in real terms by 2.4% and a focus towards education,
health and welfare services which will represent 55% of budgeted non-interest
spending for the year. On the revenue front, the government is targeting an
increase of 2.6% in real terms driven by improved tax collections, higher excise
duties and receipts from the corporate sector.
Privatizations are also expected to increase in 1997 and will help boost much
needed foreign exchange reserves which currently approximate $3 billion. With
the 30% sale of Telkom to a consortium of SBC Communications and Malaysia
Telkom, South Africa will receive approximately $1.3 billion in proceeds, part
of which will be used to pay down outstanding government debt. We expect the
government to raise a further $1 billion in 1997 through the privatization of
power stations, resorts, Airports Company and forests.
Given our outlook for declining interest rates in late 1997, a more stable
currency, increasing privatizations and lower fiscal deficits, we expect the
stock market to move higher from current levels. The market is attractively
priced at 13.5 times prospective earnings which are forecast to grow by around
20%. Our GDP growth estimate for 1997 remains at 3.5% and increases to 4% in
1998.
Sincerely,
[SIGNATURE]
Warren J. Olsen
PRESIDENT AND DIRECTOR
[SIGNATURE]
Marianne L. Hay
SENIOR PORTFOLIO MANAGER
[SIGNATURE]
Jaideep Khanna
PORTFOLIO MANAGER
April 1997
3
<PAGE>
Morgan Stanley Africa Investment Fund, Inc.
Investment Summary as of March 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HISTORICAL
INFORMATION
TOTAL RETURN (%)
----------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2)
---------------------------- ----------------------------
AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
FISCAL YEAR TO DATE 22.94% -- 20.40% --
ONE YEAR 35.07 35.07% 31.58 31.58%
SINCE INCEPTION* 46.18 12.91 77.14 20.07
</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:
TOTAL RETURN
THREE MONTHS ENDED
1994* 1995 1996 MARCH 31, 1997
<S> <C> <C> <C> <C>
Net Asset Value Per Share $14.43 $17.05 $16.86 $20.30
Market Value Per Share $11.38 $12.88 $13.63 $16.75
Premium/(Discount) -21.1% -24.5% -19.2% -17.5%
Income Dividends $0.54 $0.96 $0.14 -
Capital Gains Distributions - $0.01 $1.23 -
Fund Total Return (2) 7.34% 26.14% 8.64% 20.40%
</TABLE>
(1) Assumes dividends and distributions, if any, were reinvested.
(2) Total investment return based on net asset value per share 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.
4
<PAGE>
Morgan Stanley Africa Investment Fund, Inc.
Portfolio Summary as of March 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO INVESTMENTS DIVERSIFICATION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 96.9%
Short-Term Investments 3.1%
</TABLE>
- --------------------------------------------------------------------------------
SECTORS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Banking 13.0%
Beverages & Tobacco 10.3%
Building Materials & Components 5.3%
Chemicals 10.5%
Electrical & Electronics 6.4%
Food & Household 4.1%
Leisure & Tourism 3.6%
Merchandising 6.7%
Mining 5.3%
Multi-Industry 17.6%
Other 17.2%
</TABLE>
- --------------------------------------------------------------------------------
COUNTRY WEIGHTINGS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
South Africa 42.9%
Zimbabwe 21.3%
Egypt 18.8%
Mauritius 7.0%
Morocco 3.8%
Ghana 2.6%
Kenya 1.5%
Botswana 1.3%
Other 0.8%
</TABLE>
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
<TABLE>
<CAPTION>
PERCENT OF PERCENT OF
NET ASSETS NET ASSETS
------------- -------------
<C> <S> <C> <C> <C> <C>
1. SASOL Ltd. 6.9% 6. Trans Zambezi Industries Ltd. 3.3%
2. Delta Corp. Ltd. 6.6 7. State Bank of Mauritius 3.2
3. Meikles Africa Ltd. 5.9 8. Commercial International Bank 2.7
4. Gencor Ltd. 4.8 9. North Cairo Flour Mills 2.1
5. New Africa Investments 3.4 10. Eastern Tobacco 1.9
-----
40.8%
-----
-----
</TABLE>
5
<PAGE>
INVESTMENTS (UNAUDITED)
- ---------
MARCH 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------------
- ------------
<S> <C> <C>
COMMON STOCKS (97.7%)
(UNLESS OTHERWISE NOTED)
- ---------------------------------------------------------------------------------
- ------------
BOTSWANA (1.3%)
BEVERAGES & TOBACCO
Sechaba Investment Co. 5,000,000 U.S.$ 4,125
--------------
- ---------------------------------------------------------------------------------
- ------------
EGYPT (18.8%)
AGRICULTURE
General Silo Storage 48,600 1,488
--------------
BANKING
Commercial International Bank 357,090 8,590
Egypt American Bank 14,209 673
--------------
9,263
--------------
BEVERAGES & TOBACCO
Eastern Tobacco 236,150 6,098
--------------
BUILDING MATERIALS & COMPONENTS
Alexandria Cement 28,860 591
Ameriyah Cement Co. 159,998 3,957
Helwan Portland Cement 209,800 4,710
Suez Cement Co. 101,700 2,059
Torah Portland Cement Co. 150,770 4,240
--------------
15,557
--------------
CHEMICALS
Egyptian Finance & Industrial 97,450 5,940
Paint & Chemicals Industries 19,510 776
--------------
6,716
--------------
ELECTRICAL & ELECTRONICS
Egyptian Electro Cables 51,131 1,909
--------------
FOOD & HOUSEHOLD PRODUCTS
Central Flour Mill 60,000 1,069
North Cairo Flour Mills 120,375 6,557
South Cairo & Giza Mills Bakeries 14,670 341
--------------
7,967
--------------
MERCHANDISING
MISR Free Shops Co. 50,000 677
--------------
REAL ESTATE
Helioplis Housing 15,000 1,899
Madinet Nasr Housing & Development 33,710 4,645
--------------
6,544
--------------
UTILITIES -- ELECTRICAL & GAS
Egypt Gas 500 2,576
--------------
58,795
--------------
- ---------------------------------------------------------------------------------
- ------------
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------------
- ------------
<S> <C> <C>
GHANA (2.6%)
BANKING
Social Security Bank Ltd. 6,560,000 U.S.$ 4,293
Standard Chartered Bank 655,000 1,749
--------------
6,042
--------------
BEVERAGES & TOBACCO
Guinness Ghana 3,636,822 678
Kumasi Breweries 336,000 127
Pioneer Tobacco Co. Ltd. 3,606,600 293
--------------
1,098
--------------
FINANCIAL SERVICES
Home Finance Co. 1,820,000 133
--------------
FOOD & HOUSEHOLD PRODUCTS
Unilever 1,595,800 677
--------------
METALS -- NON-FERROUS
Ghana Pioneer Aluminum Factory 1,043,400 93
--------------
8,043
--------------
- ---------------------------------------------------------------------------------
- ------------
IRELAND (0.4%)
MINING
Kenmare Resources 2,500,000 1,387
--------------
- ---------------------------------------------------------------------------------
- ------------
KENYA (1.2%)
BANKING
Kenya Commercial Bank Ltd. 555,315 975
--------------
INDUSTRIAL COMPONENTS
Firestone East Africa Ltd. 2,313,210 1,122
--------------
MERCHANDISING
Uchumi Supermarket Ltd. 2,501,107 1,648
--------------
3,745
--------------
- ---------------------------------------------------------------------------------
- ------------
MAURITIUS (7.0%)
BANKING
Mauritius Commercial Bank 947,004 4,008
State Bank of Mauritius 17,792,469 10,187
--------------
14,195
--------------
FOOD & HOUSEHOLD PRODUCTS
Happy World Foods Ltd. 1,509,713 1,150
--------------
LEISURE & TOURISM
New Mauritius Hotels 1,931,112 3,375
Sun Resorts Ltd. 121,687 270
--------------
3,645
--------------
MULTI-INDUSTRY
Mon Tressor Desert 66,368 129
Rogers & Co. Ltd. 577,430 2,847
--------------
2,976
--------------
21,966
--------------
- ---------------------------------------------------------------------------------
- ------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------------
- ------------
<S> <C> <C>
MOROCCO (3.8%)
BANKING
Banque Marocaine 35,330 U.S.$ 2,319
Wafabank 13,095 1,117
--------------
3,436
--------------
MULTI-INDUSTRY
Groupe Ona 22,500 1,882
SNI Maroc 75,711 5,709
--------------
7,591
--------------
TELECOMMUNICATIONS
Alcatel Alsthom 19,380 977
--------------
12,004
--------------
- ---------------------------------------------------------------------------------
- ------------
SOUTH AFRICA (40.9%)
APPLIANCES & HOUSEHOLD DURABLES
Ellerine Holdings Ltd. 353,500 2,080
--------------
BANKING
Amalgamated Banks of South Africa 703,051 4,454
--------------
BROADCASTING & PUBLISHING
Omni Media Corp. 75,000 1,154
Perskor Beleggings Beperk 163,200 1,669
Primedia Ltd. 125,000 718
--------------
3,541
--------------
CHEMICALS
Polfin Ltd. 2,475,000 4,559
SASOL Ltd. 1,728,842 18,484
--------------
23,043
--------------
CONSTRUCTION & HOUSING
Concor Ltd. 277,222 1,568
--------------
ELECTRICAL & ELECTRONICS
Allied Electronics Corp. Ltd. 770,000 1,237
DataTec Ltd. 686,000 3,260
Dimensions Data Holdings Ltd. 1,831,487 6,009
Persetel Holdings Ltd. 810,000 5,059
Reunert Ltd. 40,000 141
Spescom Electronics Ltd. 765,100 1,143
Voltex Holdings Ltd. 2,084,026 1,169
--------------
18,018
--------------
ENERGY SOURCES
Energy Africa Ltd. 400,000 1,855
Ingwe Coal Corp. Ltd. 256,200 1,687
Trans Natal Coal Corp. Ltd. 600,000 3,869
--------------
7,411
--------------
FOOD & HOUSEHOLD PRODUCTS
Premier Group Ltd. 200,000 297
--------------
- ---------------------------------------------------------------------------------
- ------------
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------------
- ------------
<S> <C> <C>
GOLD MINES
Driefontein Consolidation Ltd. 322,100 U.S.$ 2,923
Evander Gold Mines Ltd. 190,900 1,123
Free State Consolidation Gold Mines Ltd. 291,500 2,094
--------------
6,140
--------------
INDUSTRIAL COMPONENTS
Tiger Wheels Ltd. 73,297 264
--------------
INSURANCE
Sage Group Ltd. 605,000 2,998
--------------
LEISURE & TOURISM
Kersaf Investments Ltd. 117,000 966
Leisurenet Ltd. 114,510 111
Spur Holdings Ltd. 671,200 1,336
Sun International Ltd. 4,423,571 2,953
--------------
5,366
--------------
MACHINERY & ENGINEERING
Howden Africa Holdings Ltd. 1,940,072 2,019
--------------
MERCHANDISING
Housewares Group Ltd. 152,100 76
--------------
METALS -- NON-FERROUS
Chromecorp Holdings Ltd. 515,700 1,301
Potgietersrust Platinums Ltd. 307,549 1,886
Rustenburg Platinum Holdings Ltd. 96,018 1,553
--------------
4,740
--------------
METALS -- STEEL
Highveld Steel & Vanadium Corp. Ltd. 560,000 2,496
--------------
MINING
Gencor Ltd. 3,253,500 15,091
--------------
MULTI-INDUSTRY
Barlow Ltd. 545,700 6,056
Bidvest Group Ltd. 556,305 3,430
Bidvest Group Ltd. (Rights), expiring 4/10/97 556,305 31
Capital Alliance Holdings Ltd. 800,000 5,014
Capital Alliance Holdings Ltd. (Rights),
expiring 4/4/97 192,000 109
New Africa Investments (Preferred) 12,998,502 10,588
Real Africa Holdings Ltd. 80,000 125
Rembrandt Group Ltd. 320,400 3,425
--------------
28,778
--------------
128,380
--------------
- ---------------------------------------------------------------------------------
- ------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------------
- ------------
<S> <C> <C>
SWITZERLAND (0.6%)
MULTI-INDUSTRY
Suedelektra Holding AG 2,175 U.S.$ 1,844
--------------
- ---------------------------------------------------------------------------------
- ------------
UNITED KINGDOM (0.1%)
ENERGY SOURCES
Wankie Colliery Co. Ltd. 650,000 267
--------------
- ---------------------------------------------------------------------------------
- ------------
ZIMBABWE (21.0%)
BANKING
NMBZ Holdings Ltd. 1,150,000 2,459
--------------
BEVERAGES & TOBACCO
Delta Corp. Ltd. 13,411,365 20,844
--------------
BUILDING MATERIALS & COMPONENTS
PG Industries 1,123,748 659
Portland Holdings Ltd. 300,000 426
--------------
1,085
--------------
ENERGY SOURCES
Wankie Colliery Co. Ltd. 7,522,900 3,341
--------------
FOOD & HOUSEHOLD PRODUCTS
Colcom Holdings 1,312,500 554
Eastern Highlands 3,375,659 600
Hippo Valley Estates Ltd. 1,200,000 1,492
--------------
2,646
--------------
LEISURE & TOURISM
Zimbabwe Sun 6,445,161 2,204
--------------
MERCHANDISING
Meikles Africa Ltd. 8,419,880 18,608
--------------
METALS -- NON-FERROUS
Bindura Nickel Corp. Ltd. 625,000 416
--------------
MULTI-INDUSTRY
CFI Holdings 1,054,300 140
TA Holdings Ltd. 11,250,100 1,699
Trans Zambezi Industries Ltd. 6,012,410 5,411
Trans Zambezi Industries Ltd. 144A 5,000,000 4,500
Trans Zambezi Industries Ltd. -- New 360,000 324
TSL Ltd. 3,477,000 2,007
--------------
14,081
--------------
TEXTILES & APPAREL
Spinweave 3,336,000 178
--------------
65,862
--------------
- ---------------------------------------------------------------------------------
- ------------
TOTAL COMMON STOCKS
(Cost U.S. $221,607) 306,418
--------------
- ---------------------------------------------------------------------------------
- ------------
<CAPTION>
VALUE
SHARES (000)
- ---------------------------------------------------------------------------------
- ------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCK (1.0%)
- ---------------------------------------------------------------------------------
- ------------
SOUTH AFRICA
CHEMICALS
SASOL Ltd. 8.50%
(Cost U.S. $3,361) 294,400 U.S.$ 3,098
--------------
- ---------------------------------------------------------------------------------
- ------------
<CAPTION>
FACE
AMOUNT
(000)
<S> <C> <C>
- ---------------------------------------------------------------------------------
- ------------
SHORT-TERM INVESTMENT (1.5%)
- ---------------------------------------------------------------------------------
- ------------
UNITED STATES (1.5%)
REPURCHASE AGREEMENT
Chase Securities, Inc., 6.00%, dated 3/31/97,
due 4/1/97, to be repurchased at U.S. $4,745,
collateralized by United States Treasury
Bonds, 11.25%, due 2/15/15, valued at U.S.
$4,845 (Cost U.S. $4,744) U.S.$ 4,744 4,744
--------------
- ---------------------------------------------------------------------------------
- ------------
FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN (1.6%)
Egyptian Pound EGP 1,049 309
Ghana Cedi GHC 24,639 13
Kenyan Shilling KES 47,208 864
South African Rand ZAR 13,650 3,089
Zimbabwe Dollar ZWD 9,186 815
--------------
(Cost U.S. $5,069) 5,090
--------------
- ---------------------------------------------------------------------------------
- ------------
TOTAL INVESTMENTS (101.8%)
(Cost U.S. $234,781) 319,350
--------------
- ---------------------------------------------------------------------------------
- ------------
OTHER ASSETS AND LIABILITIES (-1.8%)
Other Assets U.S.$ 9,232
Liabilities (14,982) (5,750)
------------- --------------
- ---------------------------------------------------------------------------------
- ------------
NET ASSETS (100%)
Applicable to 15,448,477 issued and outstanding U.S. $0.01 par
value shares (100,000,000 shares authorized) U.S.$ 313,600
----------
- ---------------------------------------------------------------------------------
- ------------
NET ASSET VALUE PER SHARE U.S.$ 20.30
----------
- ---------------------------------------------------------------------------------
- ------------
</TABLE>
8