<PAGE>
MORGAN STANLEY
AFRICA INVESTMENT FUND, INC.
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Barton M. Biggs William G. Morton, Jr.
CHAIRMAN OF THE BOARD DIRECTOR
OF DIRECTORS
Michael F. Klein James W. Grisham
PRESIDENT AND DIRECTOR VICE PRESIDENT
Peter J. Chase Harold J. Schaaff, Jr.
DIRECTOR VICE PRESIDENT
John W. Croghan Joseph P. Stadler
DIRECTOR VICE PRESIDENT
David B. Gill Valerie Y. Lewis
DIRECTOR SECRETARY
Graham E. Jones Joanna M. Haigney
DIRECTOR TREASURER
John A. Levin Belinda A. Brady
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
73 Tremont Street
Boston, Massachusetts 02108
- --------------------------------------------------------------------------------
CUSTODIANS
Morgan Stanley Trust Company
One Pierrepont Plaza
Brooklyn, New York 11201
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
THIRD QUARTER REPORT
SEPTEMBER 30, 1997
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
<PAGE>
LETTER TO SHAREHOLDERS
- ---------
For the nine months ended September 30, 1997, the Morgan Stanley Africa
Investment Fund, Inc. (the "Fund") had a total return, based on net asset value
per share, of 23.88%. Beginning with this report, the Fund is comparing its
performance to the Fleming Africa Index (the "Index"). This Index is a market
capitalization weighted index based on the indices of eleven countries including
Botswana, Egypt, Ghana, Kenya, Malawi, Mauritius, Morocco, Namibia, South
Africa, Tunisia, and Zimbabwe. The local indices include dividends except for
the indices of Botswana, Ghana, Kenya and Namibia. For the nine months ended
September 30, 1997, the total return for the Index was 11.87%. For the one year
ended September 30, 1997, the Fund had a total return, based on net asset value
per share, of 35.36% compared to 6.62% for the Index. For the period since the
Fund's commencement of operations on February 14, 1994 through September 30,
1997, the Fund's total return, based on net asset value per share, was 82.25%
compared to 58.10% for the Index. On September 30, 1997, the closing price of
the Fund's shares on the New York Stock Exchange was $16 15/16 representing a
17.0% discount to the Fund's net asset value per share.
The Fund's significant outperformance was driven by overweight positions in the
smaller African markets primarily Botswana, Egypt, Mauritius, Morocco and
Zimbabwe and underweight position in South Africa.
SOUTH AFRICA
The MSCI South Africa Index declined by 5.8% during the third quarter ended
September 30, 1997. For the nine months ended September 30, 1997 the index
appreciated by 8.4%. The market decline during the quarter was primarily due to
the continued delay in a much expected interest rate cut. The lack of reduction
in interest rates was driven by higher second quarter GDP growth of 2.6% quarter
on quarter, inflation remaining high at 9.1% for the month ending July and money
supply growth at 14%, higher than the Revenue Bank target of 10 - 12%.
We maintain our expectation of a 1% cut in interest rates late in the fourth
quarter followed by a 2% cut in calendar 1998. We have further revised down our
GDP growth for 1997 to 2% and 1998 to 2.5% due to current high real interest
rates and continued strength of the rand. The rand exchange rate versus the
dollar ended the quarter close to where it was at the beginning of the year.
This relative strength in the rand in a period of dollar appreciation versus the
major currencies has also put pressure on the competitiveness of South African
exporters.
Given this situation, we remain cautious with regard to the value of the rand.
Slower growth in GDP than previously expected will also make it difficult for
the government to achieve its ambitious fiscal deficit target of 4% to GDP. We
expect the deficit to be closer to 4.5% of GDP for the 1997/1998 year.
Net foreign purchases of equities and fixed income securities has been
significant in 1997 and totaled $8.5 billion for the nine months ended September
30, 1997 versus $1.9 billion in the comparable period in 1996.
EGYPT
The MSCI Egypt index increased by 4.0% and 42.3% for the quarter and nine months
ended September 30, 1997.
Egypt's macro economic situation remains one of the best on the African
continent. Strong fiscal and monetary policy management have led to the fiscal
deficit declining from 17% in 1991 to an expected 0.8% for 1997, while inflation
has come down from 20% in 1991 to the current level of 4.8%. The deficit has
been driven down by reductions in government spending, subsidies, public sector
employment, military spending and increasing privatization. Inflation has been
brought down with a tight monetary policy coupled with declining tariffs and
removal of price controls.
Total privatizations since the beginning of the program have reached $1.8
billion with over half being implemented in 1997. Further privatization of Misr
Aluminum and Industrial and Engineering Enterprise Company are expected by the
end of 1997 raising an additional $200-400 million.
Egypt will also be included in the IFC investable index as of November 1997 with
a 0.8% weight. This inclusion is being driven by Egypt's increasing market
capitalization and higher liquidity. Egypt's market capitalization has
increased from $3.8 billion in 1993 to $21.1 billion in September 1997. The
market's average daily trading volume has also improved significantly from $10
million in 1996 to $28 million in 1997.
GDP growth is expected to average over 5% per annum for the balance of the
decade. The market remains very
2
<PAGE>
attractively valued at 11.5 times 1998 earnings which are growing at 15% and, is
supported by a dividend of yield of 5%.
ZIMBABWE
The Flemings Zimbabwe All Share index declined by 10.9% and 1.1% for the quarter
and nine months ended September 30, 1997. The market declined due to concerns
of a potential drought as a result of the El Nino weather phenomenon and one-off
payments to war veterans amounting to 2.5% of GDP. Consequently, the IMF
suspended its balance of payments support of $60 million until it has a better
idea of how this payment will be financed. Withdrawal of the facility combined
with an increasing negative sentiment also led to a depreciation of the currency
by 9.6% during the quarter. It appears that the government plans to finance
this payment by increasing privatizations and through a special reserve which
was set aside in the current year's budget. The Cotton Company of Zimbabwe is
currently in the process of being privatized and is expected to raise $45
million for a 75% stake via the stock exchange.
We maintain out GDP growth forecast of 5% per annum in 1997 and 1998 following
the 8.1% growth in 1996. Zimbabwe is adequately positioned to offset any
potential drought as its dams remain filled close to capacity while the water
table is the highest it has been in recent years. Given this buffer, if the
country does experience a drought, we would expect GDP growth in 1998 to be
3.5%. Inflation has continued to trend down and came in at 14.4% in September.
We expect inflation to average 20% in 1997 with a gradual reduction in 1998 to
18%.
The Zimbabwean market has had a major correction and is now very attractively
valued at 10 times 1998 earnings. We expect earnings growth to average 40% in
1997 and 35% in 1998 or, in real terms this equates to 20% and 18%,
respectively.
Sincerely,
/s/ Michael F. Klein
Michael F. Klein
PRESIDENT AND DIRECTOR
/s/ Jaideep Khanna
Jaideep Khanna
PORTFOLIO MANAGER
/s/ Madhav Dhar
Madhav Dhar
PORTFOLIO MANAGER
/s/ Robert L. Meyer
Robert L. Meyer
PORTFOLIO MANAGER
October 1997
3
<PAGE>
MORGAN STANLEY AFRICA INVESTMENT FUND, INC.
INVESTMENT SUMMARY AS OF SEPTEMBER 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HISTORICAL TOTAL RETURN (%)
INFORMATION -----------------------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2) INDEX (3)
---------------------- ---------------------- ---------------------
AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
---------- ------- ---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
FISCAL YEAR TO DATE 27.15% -- 23.88% -- 11.87% --
ONE YEAR 44.76 44.76% 35.36 35.36% 6.62 6.62%
SINCE INCEPTION* 51.18 12.07 82.25 17.99 58.10 13.47
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION (2)
[BAR GRAPH]
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31: NINE MONTHS
ENDED
1994* 1995 1996 SEPTEMBER 30, 1997
------- ------- ------ ------------------
<S> <C> <C> <C> <C>
Net Asset Value Per Share . $ 14.43 $ 17.05 $16.86 $ 20.42
Market Value Per Share . . $ 11.38 $ 12.88 $13.63 $ 16.94
Premium/(Discount) . . . . . -21.1 % -24.5 % -19.2 % -17.0 %
Income Dividends . . . . . . $ 0.54 $ 0.96 $ 0.14 --
Capital Gains Distributions -- $ 0.01 $ 1.23 $ 0.40
Fund Total Return (2) . . . 7.34% 26.14% 8.64% 23.88%
Index Total Return (3) . . . -- -- -- 11.87%
</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.
(3) The Fleming Africa Index is a marketed capitalization weighted index based
on the indices of eleven countries including Botswana, Egypt, Ghana, Kenya,
Malawi, Mauritus, Morocco, Namibia, South Africa, Tunisia, and Zimbabwe.
The local indices include dividends except for Botswana, Ghana, Kenya and
Namibia.
* The Fund commenced operations on February 14, 1994.
4
<PAGE>
MORGAN STANLEY AFRICA INVESTMENT FUND, INC.
PORTFOLIO SUMMARY AS OF SEPTEMBER 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO INVESTMENTS DIVERSIFICATION
[PIE CHART]
Short-Term Investments (2.7%)
Equity Securities (97.3%)
- --------------------------------------------------------------------------------
SECTORS
[PIE CHART]
Other (20.7%)
Real Estate (3.1%)
Multi-Industry (21.6%)
Merchandising (7.1%)
Banking (14.5%)
Beverages & Tobacco (5.8%)
Building Materials & Components (5.7%)
Chemicals (9.7%)
Energy Sources (3.6%)
Food & Household (4.5%)
Leisure & Tourism (3.7%)
- --------------------------------------------------------------------------------
COUNTRY WEIGHTINGS
[PIE CHART]
Zambia (1.8%)
Kenya (1.8%)
Morocco (2.2%)
Botswana (3.1%)
Ghana (3.7%)
Mauritius (7.6%)
Zimbabwe (19.1%)
Other (5.1%)
South Africa (34.2%)
Egypt (21.4%)
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS*
PERCENT OF
NET ASSETS
----------
1. Delta Corp. 5.9%
2. SASOL Ltd. 5.8
3. Meikles Africa Ltd. 5.7
4. State Bank of Mauritius 3.2
5. New Africa Investments Ltd. 3.1
6. Commercial International Bank 2.7
7. Sechaba Investment Co. 2.5
8. Madinet Nasr Housing & Development 2.4
9. Coronation Holdings Ltd. 2.1
10. Trans Zambezi Industries Ltd. 2.1
----------
35.5%
----------
----------
* Excludes short-term investments.
5
<PAGE>
INVESTMENTS (UNAUDITED)
- -------
SEPTEMBER 30, 1997
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (96.5%)
(Unless otherwise noted)
- --------------------------------------------------------------------------------
BOTSWANA (3.1%)
BANKING
Barclays Bank of Botswana 170,000 U.S.$ 785
First National Bank of Botswana 140,000 332
Standard Chart Bank of Botswana 210,000 969
--------------
2,086
--------------
BEVERAGES & TOBACCO
Sechaba Investment Co. 6,250,000 7,806
--------------
9,892
--------------
- --------------------------------------------------------------------------------
EGYPT (21.4%)
AGRICULTURE
General Silo Storage 48,600 1,410
--------------
BANKING
Commercial International Bank 348,990 8,480
Egypt American Bank 10,709 366
--------------
8,846
--------------
BEVERAGES & TOBACCO
Eastern Tobacco 236,150 6,198
--------------
BUILDING MATERIALS & COMPONENTS
Alexandria Cement 28,860 547
Ameriyah Cement Co. 189,993 4,698
Helwan Portland Cement 209,800 4,454
Suez Cement Co. 126,700 3,022
Tora Portland Cement Co. 150,770 4,019
--------------
16,740
--------------
CHEMICALS
Egyptian Finance & Industrial 97,450 6,559
Paint & Chemicals Industries 19,510 695
--------------
7,254
--------------
CONSTRUCTION & HOUSING
Arabian International 46,000 908
--------------
ELECTRICAL & ELECTRONICS
Egyptian Electro Cables 51,131 1,468
--------------
FOOD & HOUSEHOLD PRODUCTS
Central Flour Mill 60,000 707
North Cairo Flour Mills 120,375 6,134
South Cairo & Giza Mills Bakeries 14,670 287
--------------
7,128
--------------
MERCHANDISING
MSIR Free Shops Co. 50,000 641
--------------
REAL ESTATE
Helioplis Housing 15,000 2,200
Madinet Nasr Housing &
Development 105,790 7,619
--------------
9,819
--------------
TEXTILES & APPAREL
KABO-El Nasr Clothing &
Textile Co. 144,050 4,413
--------------
- --------------------------------------------------------------------------------
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
UTILITIES - ELECTRICAL & GAS
Egypt Gas 500 U.S.$ 2,577
--------------
67,402
--------------
- --------------------------------------------------------------------------------
GHANA (3.7%)
BANKING
Ghana Commercial Bank 5,339,360 1,704
Social Security Bank Ltd. 6,560,000 4,717
Standard Chartered Bank 920,500 2,946
--------------
9,367
--------------
BEVERAGES & TOBACCO
Guinness Ghana 3,779,999 753
Kumasi Brewery Ltd. 336,000 132
Pioneer Tobacco Co. Ltd. 3,606,600 613
--------------
1,498
--------------
FINANCIAL SERVICES
Home Finance Co. 2,345,700 181
--------------
FOOD & HOUSEHOLD PRODUCTS
Unilever 1,595,800 674
--------------
METALS - NON-FERROUS
Ghana Pioneer Aluminum Factory 1,043,400 73
--------------
11,793
--------------
- --------------------------------------------------------------------------------
IRELAND (0.8%)
MINING
Kenmare Resources 3,815,000 1,109
--------------
OIL & GAS
Tuskar Resources plc 19,000,000 1,456
--------------
2,565
--------------
- --------------------------------------------------------------------------------
IVORY COAST (0.5%)
HEALTHCARE SUPPLIES & SERVICES
SOC Ivoirienne de Coco Rappe 24,000 892
--------------
MULTI-INDUSTRY
Filature Tissages Sacs 5,000 553
--------------
1,445
--------------
- --------------------------------------------------------------------------------
KENYA (1.8%)
BANKING
Kenya Commercial Bank Ltd. 991,326 1,570
National Industrial Credit Bank 311,551 252
--------------
1,822
--------------
CONSTRUCTION & HOUSING
Athi River Mining Ltd. 3,262,500 582
--------------
INDUSTRIAL COMPONENTS
Firestone East Africa Ltd. 3,171,300 1,320
--------------
MERCHANDISING
Uchumi Supermarket Ltd. 2,501,107 1,637
--------------
UTILITIES - ELECTRICAL & GAS
Kenya Power & Lighting Co. Ltd. 100,000 283
--------------
5,644
--------------
- --------------------------------------------------------------------------------
6
<PAGE>
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
MAURITIUS (7.6%)
BANKING
Mauritius Commercial Bank 1,272,145 U.S.$ 5,712
State Bank of Mauritius 17,792,469 10,242
--------------
15,954
--------------
FOOD & HOUSEHOLD PRODUCTS
Happy World Foods Ltd. 1,509,713 1,112
--------------
LEISURE & TOURISM
New Mauritus Hotels 2,066,112 3,987
--------------
MULTI-INDUSTRY
Rogers and Co. Ltd. 602,081 2,967
--------------
24,020
--------------
- --------------------------------------------------------------------------------
MOROCCO (2.2%)
BANKING
Wafabank 2,500 225
--------------
MULTI-INDUSTRY
Groupe Ona 12,376 1,086
SNI Maroc 56,011 4,875
--------------
5,961
--------------
TELECOMMUNICATIONS
Alcatel Alsthom 18,690 813
--------------
6,999
--------------
- --------------------------------------------------------------------------------
SOUTH AFRICA (34.2%)
BANKING
NBS Boland Ltd. 84,600 1,743
Samgro Investment Holdings
Ltd. - New 500,000 1,287
--------------
3,030
--------------
BEVERAGES & TOBACCO
Amalgamated Beverage
Industries Ltd. 360,922 2,652
--------------
BROADCASTING & PUBLISHING
Perskor Beleggings Beperk 2,877,000 2,222
--------------
CHEMICALS
Polfin Ltd. 2,475,000 4,960
SASOL Ltd. 1,053,842 14,528
SASOL Ltd. 8.50%
(Convertible Preferred) 294,400 3,917
--------------
23,405
--------------
CONSTRUCTION & HOUSING
Concor Ltd. 344,822 2,072
--------------
ELECTRICAL & ELECTRONICS
Dimensions Data Holdings Ltd. 116,487 488
Persetel Holdings Ltd. 555,000 3,644
Spescom Electronics Ltd. 765,100 1,182
Voltex Holdings Ltd. 2,084,026 1,225
--------------
6,539
--------------
ENERGY SOURCES
Energy Africa Ltd. 400,000 2,318
Ingwe Coal Corp. Ltd. 356,200 1,689
Trans Natal Coal Corp. Ltd. 569,800 2,934
--------------
6,941
--------------
- --------------------------------------------------------------------------------
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES
Coronation Holdings Ltd. 300,000 U.S.$ 5,472
Coronation Holdings Ltd.
'N' - New 75,000 1,291
--------------
6,763
--------------
FOOD & HOUSEHOLD PRODUCTS
First South Africa Corp. 250,000 3,318
Illovo Sugar Ltd. 635,500 1,159
--------------
4,477
--------------
FOREST PRODUCTS & PAPER
Malbak Ltd. 200,000 292
--------------
INSURANCE
Forbes Group Ltd. 900,000 1,699
Sage Group Ltd. 174,413 898
--------------
2,597
--------------
LEISURE & TOURISM
Kersaf Investments Ltd. 117,000 879
Leisurenet Ltd. 116,800 126
Spur Holdings Ltd. 672,200 1,103
Sun International Ltd. 4,923,571 3,022
--------------
5,130
--------------
MACHINERY & ENGINEERING
Howden Africa Holdings Ltd. 2,034,572 1,746
--------------
METALS - NON-FERROUS
Chromecorp Holdings Ltd. 600,000 940
Rustenburg Platinum
Holdings Ltd. 230,828 3,999
--------------
4,939
--------------
METALS - STEEL
Highveld Steel &
Vanadium Corp. Ltd. 347,300 1,248
--------------
MINING
Gencor Ltd. 400,100 944
--------------
MULTI-INDUSTRY
Barlow Ltd. 545,700 6,235
Bidvest Group Ltd. 588,546 4,799
New Africa Investments Ltd.
(Preferred) 'N' 13,000,000 9,623
Rembrandt Group Ltd. 670,100 6,068
--------------
26,725
--------------
RETAIL - MAJOR DEPARTMENT STORES
Ellerine Holdings Ltd. 303,500 2,410
New Clicks Holdings Ltd. 1,481,457 1,920
Protea Furnishers Ltd. 3,500,000 1,802
--------------
6,132
--------------
107,854
--------------
- --------------------------------------------------------------------------------
UNITED KINGDOM (0.3%)
METALS - NON-FERROUS
Billiton plc 274,925 1,059
--------------
- --------------------------------------------------------------------------------
ZAMBIA (1.8%)
FOOD & HOUSEHOLD PRODUCTS
Zambia Sugar Co. Ltd. 120,213,609 3,626
--------------
MINING
Zambia Consolidated
Copper Mines 600,000 1,890
--------------
5,516
--------------
- --------------------------------------------------------------------------------
7
<PAGE>
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
ZIMBABWE (19.1%)
BANKING
NMBZ Holdings Ltd. 1,816,000 U.S.$ 4,319
--------------
BUILDING MATERIALS & COMPONENTS
PG Industries 1,647,545 500
Portland Holdings Ltd. 400,000 686
--------------
1,186
--------------
ENERGY SOURCES
Wankie Colliery Co. Ltd. 7,871,900 4,319
--------------
FOOD & HOUSEHOLD PRODUCTS
Colcom Holdings 500,000 136
Eastern Highlands 3,375,659 444
--------------
580
--------------
LEISURE & TOURISM
Zimbabwe Sun 6,617,338 2,483
--------------
MERCHANDISING
Meikles Africa Ltd. 8,419,880 18,103
--------------
METALS - NON-FERROUS
Bindura Nickel Corp. Ltd. 625,000 249
--------------
MULTI-INDUSTRY
CFI Holdings 1,054,300 131
Delta Corp. 13,401,903 18,722
TA Holdings Ltd. 11,250,100 1,616
Trans Zambezi Industries Ltd. 11,012,410 6,461
Trans Zambezi Industries Ltd. -
New 360,000 211
TSL Ltd. 3,477,000 1,596
--------------
28,737
--------------
TEXTILES & APPAREL
Spinweave 4,448,000 195
--------------
60,171
--------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost U.S.$236,655) 304,360
--------------
- --------------------------------------------------------------------------------
FACE
AMOUNT
(000)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (0.5%)
- --------------------------------------------------------------------------------
UNITED STATES (0.5%)
REPURCHASE AGREEMENT
Chase Securities, Inc.,
5.75%, dated 9/30/97,
due 10/1/97, to be
repurchased at U.S.
$1,678, collateralized by
United States Treasury
Bonds, 8.50%, due
2/15/20, valued at
U.S.$1,715
(Cost U.S.$1,678) U.S.$ 1,678 1,678
--------------
- --------------------------------------------------------------------------------
FACE
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN (2.1%)
Botswana Pula BWP 4,912 U.S.$ 1,334
Kenyan Shilling KES 1,696 27
Moroccan Dirham MAD 23,957 2,482
South African Rand ZAR 12,694 2,724
Zimbabwe Dollar ZWD 999 80
-----------------
(Cost U.S.$6,635) 6,647
-----------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (99.1%)
(Cost U.S.$244,968) 312,685
-----------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.9%)
Other Assets U.S.$ 8,336
Liabilities (5,561) 2,775
---------- -----------------
- --------------------------------------------------------------------------------
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.$315,460
-----------------
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S.$ 20.42
-----------------
- --------------------------------------------------------------------------------
8
