<PAGE>
-------------------------------------------------------------
MORGAN STANLEY
DEAN WITTER
AFRICA INVESTMENT
FUND, INC.
-------------------------------------------------------------
THIRD QUARTER REPORT
SEPTEMBER 30, 1999
MORGAN STANLEY DEAN WITTER
INVESTMENT MANAGEMENT INC.
INVESTMENT ADVISER
MORGAN STANLEY DEAN WITTER
AFRICA INVESTMENT FUND, INC.
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DIRECTORS AND OFFICERS
Barton M. Biggs
CHAIRMAN OF THE BOARD
OF DIRECTORS
Michael F. Klein
PRESIDENT AND DIRECTOR
Peter J. Chase
DIRECTOR
John W. Croghan
DIRECTOR
David B. Gill
DIRECTOR
Graham E. Jones
DIRECTOR
John A. Levin
DIRECTOR
William G. Morton, Jr.
DIRECTOR
Stefanie V. Chang
VICE PRESIDENT
Harold J. Schaaff, Jr.
VICE PRESIDENT
Joseph P. Stadler
VICE PRESIDENT
Mary E. Mullin
SECRETARY
Belinda A. Brady
TREASURER
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INVESTMENT ADVISER
Morgan Stanley Dean Witter Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020
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ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
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CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
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SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
(800) 278-4353
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LEGAL COUNSEL
Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
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INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
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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 or visit our website at
www.msdw.com/institutional/investmentmanagement.
<PAGE>
LETTER TO SHAREHOLDERS
- ---------
For the nine months ended September 30, 1999, the Morgan Stanley Dean Witter
Africa Investment Fund, Inc. (the "Fund") had a total return, based on net asset
value per share, of 6.42%. For the period since the Fund's commencement of
operations on February 14, 1994 through September 30, 1999, the Fund's total
return, based on net asset value per share, was 41.78%. On September 30, 1999,
the closing price of the Fund's shares on the New York Stock Exchange was
$9 3/8, representing a 24.2% discount to the Fund's net asset value per share.
SOUTH AFRICA
The South African market drifted down 2.7% as measured by the Johannesburg
All-Share Index during the third quarter of 1999, in sympathy with emerging
markets around the world. Performance was uneven, however, as commodity stocks
raced ahead by over 20% and financials and industrials fell over 12%. Interest
rates continued their steady decline, with the prime lending rate falling from
18.0% to 15.5% during the quarter. The Rand was strong, remaining relatively
flat from its opening level this year, reflecting the country's stronger
fundamentals, strong portfolio inflows and U.S. dollar weakness.
During the third quarter, the government won a major negotiation over public
sector wages, unilaterally imposing a 6.3% increase for the coming year,
slightly below the core inflation rate of 8%. This marks the government's first
significant attempt at improving the competitiveness of South Africa's labor
market, one of the major hurdles to attract foreign direct investment (FDI) into
the country. Tito Mboweni, the new Reserve Bank Governor, was sworn in during
August. His initial agenda includes a more passive stance on defending the
currency, the unwinding of the Bank's large forward book, and the introduction
of inflation targeting.
The gold price spiked up violently towards the end of September in what came as
a pleasant surprise to the country's economic prospects. Gold still represents
about 16% of exports and 4% of GDP for South Africa. This price movement,
together with price moves in platinum, steel and the base metals, we believe,
will push GDP growth beyond the consensus expectation of 3% for the year 2000.
The Fund continues to have a bullish stance on South Africa, as the upturn in
the commodity cycle coincides with a dramatic reduction in interest rates to
create a better environment for economic and earnings growth. We believe the
recent run-up in commodity shares will continue to have support, as it is well
underpinned by stronger global growth expectations and commodity price
prospects. Domestically-geared shares, including those that are interest rate
sensitive, have been punished as local fund managers seek to increase their
commodity exposure, and are looking increasingly interesting from a valuation
perspective.
EGYPT
The Egyptian Financial Group Index fell by 2.4% during the third quarter,
reflecting investor apathy towards the market and concerns over the handling of
foreign reserves. The Central Bank's reluctance to release much dollar liquidity
in the economy despite the high level of foreign reserves continued to puzzle
and frustrate market participants and sparked the creation of an unofficial
market for foreign exchange. Interbank interest rates had a temporary spike in
the late summer months, as the monetary authorities sought to limit local
currency liquidity and demand for dollars. Towards the latter part of the
quarter, however, liquidity in both local and foreign exchange increased and
interest rates started to ease. The external accounts appeared to be improving
significantly as well, on the back of higher oil prices and a record number of
tourist arrivals. The current account deficit for the government's fiscal year
ended June 1999 was recorded at 2.1% of GDP, a sharp drop from the 3.7% seen in
fiscal 1998.
Privatization gathered momentum as two more cement companies were auctioned off
to strategic investors, fetching premium prices and attracting a large number of
bidders. We expect a few small privatization transactions in the last quarter of
1999 and the listing of the electric and telephone utilities in 2000. President
Mubarak was reelected in a national referendum in September, and is widely
expected to shake up the present cabinet and appoint a higher number of
free-market minded ministers to key positions.
We continue to be positive about this market, especially in the light of renewed
vigor in the privatization program and the progress in alleviating the foreign
exchange shortage. Valuations are extremely compelling, at about 8 times on a
price-earnings basis to year end 1999, and earnings growth is quite healthy at a
15% level for the market as a whole.
GHANA
The Ghanaian market continued to lose significant ground, as the Databank Index
fell 11.8%. The local currency, the Cedi, receded further, depreciating by 5.4%.
Inflation numbers, while still encouraging, ticked up slightly to 10.3% in June,
driven by increases in oil prices. Revenue collection has been a bit
disappointing and the fiscal situation has not improved as quickly as
anticipated. T-Bill rates, consequently, are stuck at the 26% level and will
probably remain there for the rest of the year, until
2
<PAGE>
there is more tangible progress on the fiscal side and certainty on inflationary
trends.
Privatization has returned as an important item on the agenda, with imminent
deals on the largest insurance company and the produce-buying division of the
cocoa board. Higher gold prices will also benefit the country, as gold is the
second largest source of foreign exchange, after cocoa. Parliamentary action
allowing the creation of mutual funds and the hiring of professional managers
for pension fund money has been slow and perhaps will not be dealt with until
the new year.
We see tremendous value in this market, as stocks trade at forward
price-earnings multiples below 4 times, GDP growth is solid at about 5% and the
battle against high inflation and unrestrained fiscal spending has been largely
won.
MAURITIUS
The SEMDEX Index in Mauritius fell by 4.4% during the third quarter, as
attractive treasury bill rates continued to lure local money away from equities.
The Central Bank intends to keep tight monetary policy over the next few months,
as inflation has picked up to 7.9% in 1999 from 5.5% in 1998. GDP growth, which
will suffer from the poor sugar crop this year, should bounce back in 2000 to
above 5%. The non-agricultural sectors of the economy - tourism, financial
sector and textiles - are still expanding vigorously and all will record real
growth over the 5% mark in 1999. The decline in stock prices combined with
positive earnings performance make valuations look extremely cheap and we remain
encouraged by the market's prospects.
ZIMBABWE
The Zimbabwe Industrial Index gained 20.3% during the third quarter, as local
players continued to react to the good earnings performance of the major
corporates and the prevalence of negative real interest rates. The IMF agreed to
a stand-by credit for the country in August, pledging $193 million over the next
14 months. Only a minute portion of this was released before it became apparent
that targets would be missed and the government had misrepresented its expenses
relating to the intervention in the Congo war, putting the program at risk. The
currency continues to be pegged at 38.6 Zimbabwe dollars per U.S. dollar, yet
with inflation running in the 50% - 60% level, an eventual adjustment appears
unavoidable. Nonetheless, the environment for equities is still quite positive;
local investors, who must keep their money in the country due to exchange
control regulations, continue to buy equities seeking to maintain the real value
of their capital.
REST OF AFRICA
The other African markets where the Fund has investments were mixed during the
third quarter, with Botswana as the star performer, rising 39.3% led by banking
shares. The fundamentals in the country continue to be sound, and the economy
will receive a boost from the current strength of the world diamond market, its
main export.
The Fund keeps a small position in Kenya, which continued its slide, falling by
15.3%. The market's decline was precipitated by rising local interest rates,
weak company results and little hope for an upturn in the economy in the
short-run. The shilling has lost 20% of its value against the dollar in 1999,
reacting to plummeting tea and coffee prices, after remaining steady throughout
the emerging market crisis of 1998.
On July 2, 1998, the Fund commenced a share repurchase program for purposes of
enhancing shareholder value and reducing the discount at which the Fund's shares
traded from their net asset value. For the nine months ended September 30, 1999,
the Fund repurchased 455,300 shares of its Common Stock at an average price per
share of $9.51 and an average discount of 23.59% from net asset value per share.
The Fund expects to continue to repurchase its outstanding shares at such time
and in such amounts as it believes will further the accomplishment of the
foregoing objectives, subject to review by the Board.
Sincerely,
/s/ Michael F. Klein
Michael F. Klein
PRESIDENT AND DIRECTOR
October 1999
THE INFORMATION CONTAINED IN THIS OVERVIEW REGARDING SPECIFIC SECURITIES IS FOR
INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS A RECOMMENDATION TO
PURCHASE OR SELL THE SECURITIES MENTIONED.
- --------------------------------------------------------------------------------
DAILY NET ASSET AND MARKET VALUES, AS WELL AS MONTHLY PORTFOLIO INFORMATION FOR
THE FUND, ARE AVAILABLE ON OUR WEBSITE AT
www.msdw.com/institutional/investmentmanagement.
3
<PAGE>
Morgan Stanley Dean Witter Africa Investment Fund, Inc.
Investment Summary as of September 30, 1999 (Unaudited)
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<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 12.49% -- 6.42% --
One Year 9.86 9.86% 2.66 2.66%
Five Year 34.57 6.12 40.19 6.99
Since Inception* 7.37 1.27 41.78 6.40
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
[GRAPH]
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
NINE MONTHS
ENDED
SEPTEMBER 30,
1994* 1995 1996 1997 1998 1999
------ ------ ------ ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Per Share........ $14.43 $17.05 $16.86 $14.45 $11.69 $12.38
Market Value Per Share........... $11.38 $12.88 $13.63 $11.50 $ 8.38 $ 9.38
Premium/(Discount)............... -21.1% -24.5% -19.2% -20.4% -28.3% -24.2%
Income Dividends................. $ 0.54 $ 0.96 $ 0.14 $ 0.30 $ 0.86 $ 0.05
Capital Gains Distributions...... -- $ 0.01 $ 1.23 $ 2.25 $ 0.00# --
Fund Total Return(2)............. 7.34% 26.14% 8.64% 2.69% -11.82% 6.42%
</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.
# Amount is less than U.S.$0.01 per share.
4
<PAGE>
Morgan Stanley Dean Witter Africa Investment Fund, Inc.
Investment Summary as of September 30, 1999 (Unaudited)
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DIVERSIFICATION OF TOTAL INVESTMENTS
[CHART]
<TABLE>
<S> <C>
Equity Securities (97.1%)
Short-Term Investments (2.9%)
</TABLE>
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INDUSTRIES
[CHART]
<TABLE>
<S> <C>
Banking (23.9%)
Beverages & Tobacco (17.6%)
Building Materials & Components (2.3%)
Financial Services (4.0%)
Insurance (2.5%)
Merchandising (4.9%)
Metals -- Non Ferrous (5.5%)
Misc. Materials & Commodities (8.6%)
Multi-Industry (6.4%)
Telecommunications -- Wireless (6.0%)
Other (18.3%)
</TABLE>
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COUNTRY WEIGHTINGS
[CHART]
<TABLE>
<S> <C>
South Africa (39.8%)
Egypt (16.2%)
Ghana (11.3%)
Mauritius (11.2%)
Zimbabwe (8.4%)
Botswana (4.8%)
Kenya (2.0%)
Ivory Coast (1.8%)
Namibia (1.3%)
Tunisia (1.0%)
Other (2.2%)
</TABLE>
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TEN LARGEST HOLDINGS*
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. State Bank of Mauritius Ltd. (Mauritius) 7.0%
2. Egyptian Company for Mobile Services (Egypt) 6.0
3. Bidvest Group Ltd. (South Africa) 5.2
4. Sechaba Breweries Ltd. (Botswana) 4.8
5. Anglo American Platinum Corp. (South Africa) 4.4
6. Standard Chartered Bank (Ghana) 3.9
7. De Beers (South Africa) 3.7
8. Al-Ahram Beverages Co. GDR (Egypt) 3.7
9. Meikles Africa Ltd. (Zimbabwe) 3.3
10. Social Security Bank Ltd. (Ghana) 3.0
----
45.0%
----
----
</TABLE>
* Excludes short-term investments.
5
<PAGE>
FINANCIAL STATEMENTS
- ---------
STATEMENT OF NET ASSETS (UNAUDITED)
- ---------
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
SHARES VALUE
(000)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (99.4%)
(unless otherwise noted)
- -------------------------------------------------------------------------------
BOTSWANA (4.8%)
BEVERAGES & TOBACCO
Sechaba Breweries Ltd. 7,649,450 U.S.$ 8,241
------------
- -------------------------------------------------------------------------------
EGYPT (16.2%)
BANKING
Commercial International Bank 63,894 611
Commercial International Bank GDR 60,000 564
National Societe Generale Bank 34,339 402
------------
1,577
------------
BEVERAGES & TOBACCO
Al-Ahram Beverages Co. GDR 211,000 6,304
Eastern Tobacco 145,902 3,375
------------
9,679
------------
BUILDING MATERIALS & COMPONENTS
Industrial & Engineering Enterprises Co. 213,685 1,877
Suez Cement Co. 7,666 114
Suez Cement Co. GDR 125,460 1,804
------------
3,795
------------
CONSTRUCTION & HOUSING
Orascom Construction Industries 70,000 894
------------
FOOD & HOUSEHOLD PRODUCTS
Central Flour Mills 110 --@
North Cairo Flour Mills 605 8
------------
8
------------
TELECOMMUNICATIONS--WIRELESS
Egyptian Company for Mobile Services 437,889 10,259
------------
TELECOMMUNICATIONS
Egyptian Electro Cables 1,848 12
------------
UTILITIES--ELECTRICAL & GAS
Egypt Gas Co. 45,000 1,682
------------
27,906
------------
- -------------------------------------------------------------------------------
GHANA (11.3%)
BANKING
Ghana Commercial Bank 5,394,580 1,698
Social Security Bank Ltd. 6,938,100 5,088
Standard Chartered Bank 913,400 6,682
------------
13,468
------------
BEVERAGES & TOBACCO
Ghana Breweries Ltd. 504,000 299
Guinness Ghana Ltd. 3,050,979 1,073
Pioneer Tobacco Co., Ltd. 6,749,660 1,000
------------
2,372
------------
FINANCIAL SERVICES
Home Finance Co. 2,814,840 U.S.$ 782
------------
METALS--NON FERROUS
Ghana Pioneer Aluminum Factory 1,043,400 112
------------
METALS--STEEL
Aluworks Ghana Ltd. 1,070,000 990
------------
RECREATION, OTHER CONSUMER GOODS
Unilever Ghana Ltd. 2,494,900 1,746
------------
19,470
- -------------------------------------------------------------------------------
IVORY COAST (1.8%)
BEVERAGES & TOBACCO
Nestle Cote D Ivoire 12,500 1,788
------------
DIVERSIFIED OPERATIONS
SOC Ivoirienne de Coco Rappe 24,000 451
------------
FINANCIAL SERVICES
Filature Tissages Sacs 25,000 812
------------
3,051
------------
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KENYA (2.0%)
BANKING
Kenya Commercial Bank Ltd. 991,326 494
------------
CONSTRUCTION & HOUSING
Athi River Mining Ltd. 3,262,500 254
------------
FINANCIAL SERVICES
National Industrial Credit Bank 389,438 145
------------
FOOD & HOUSEHOLD PRODUCTS
Uchumi Supermarket Ltd. 2,501,107 1,506
------------
MISC. MATERIALS & COMMODITIES
Firestone East Africa Ltd. 4,756,950 865
------------
UTILITIES--ELECTRICAL & GAS
Kenya Power & Lighting Co., Ltd. 150,000 188
------------
3,452
------------
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MALAWI (0.6%)
FOOD & HOUSEHOLD PRODUCTS
Sugar Corp. of Malawi 7,160,000 1,024
------------
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MAURITIUS (11.2%)
BANKING
Mauritius Commercial Bank 782,036 2,921
State Bank of Mauritius Ltd. 20,202,232 12,057
------------
14,978
------------
LEISURE & TOURISM
New Mauritius Hotels 1,753,850 3,189
------------
MULTI-INDUSTRY
Rogers and Co., Ltd. 408,031 1,113
------------
19,280
------------
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MOZAMBIQUE (0.2%)
MISC. MATERIALS & COMMODITIES
Kenmare Resources plc 1,890,000 302
------------
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NAMIBIA (1.3%)
MISC. MATERIALS & COMMODITIES
Namibian Minerals Corp. 440,000 2,241
------------
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6
<PAGE>
<CAPTION>
SHARES VALUE
(000)
- -------------------------------------------------------------------------------
<S> <C> <C>
NIGERIA (0.2%)
ENERGY SOURCES
Tuskar Resources plc 14,329,000 U.S.$ 307
------------
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SOUTH AFRICA (39.8%)
BANKING
ABSA Group Ltd. 1,026,729 4,020
Nedcor Ltd. 216,840 4,248
------------
8,268
BEVERAGES & TOBACCO ------------
Amalgamated Beverages Industries Ltd. 349,439 2,492
Rembrandt Group Ltd. 232,790 1,774
------------
4,266
------------
BROADCASTING & PUBLISHING
Primedia Ltd. 1,547,900 1,805
------------
BUSINESS & PUBLIC SERVICES
Paracon Holdings Ltd. 5,342,700 1,157
The Educor Investment Corp. Ltd. 2,811,680 1,654
------------
2,811
------------
CHEMICALS
SASOL Ltd. 507,300 3,905
------------
CONSTRUCTION & HOUSING
Concor Ltd. 909,822 1,061
------------
ELECTRICAL & ELECTRONICS
Comparex Holdings Ltd. 274,070 1,838
------------
FINANCIAL SERVICES
B.O.E. Corp. Ltd. 'N' 8,253,568 4,675
------------
FOREST PRODUCTS & PAPER
Sappi Ltd. 264,100 2,574
------------
INDUSTRIAL COMPONENTS
Leisureplanet Holdings 110,904 437
------------
INSURANCE
Metropolitan Life Ltd. 1,325,000 1,523
New Africa Investments Ltd. (Preferred) 'N' 6,881,400 2,751
------------
4,274
------------
MACHINERY & ENGINEERING
Howden Africa Holdings Ltd. 2,010,172 301
------------
MERCHANDISING
Ellerine Holdings Ltd. 733,700 2,854
------------
METALS--NON FERROUS
Anglo American Platinum Corp. 287,900 7,636
Impala Platinum Holdings Ltd. 48,600 1,676
------------
9,312
------------
MISC. MATERIALS & COMMODITIES
Billiton plc 1,108,400 4,598
De Beers 232,300 6,385
------------
10,983
------------
MULTI-INDUSTRY
Bidvest Group Ltd. 1,351,702 9,008
------------
68,372
------------
- -------------------------------------------------------------------------------
TUNISIA (0.9%)
BANKING
Banque de l'Habitat 78,750 U.S.$ 1,072
------------
FINANCIAL SERVICES
Tunisie Leasing SA 15,000 511
------------
1,583
------------
- -------------------------------------------------------------------------------
ZAMBIA (0.7%)
FOOD & HOUSEHOLD PRODUCTS
Zambia Sugar Co., Ltd. 151,371,609 681
------------
METALS--STEEL
Zambia Consolidated Copper Mines 600,000 525
------------
1,206
------------
- -------------------------------------------------------------------------------
ZIMBABWE (8.4%)
BANKING
NMBZ Holdings Ltd. 1,954,000 1,164
------------
BEVERAGES & TOBACCO
Delta Corp., Ltd. 11,477,736 3,343
TSL Ltd. 3,477,000 579
------------
3,922
------------
BUILDING MATERIALS & COMPONENTS
Portland Holdings Ltd. 400,000 109
Portland Holdings Ltd. (Convertible Shares 13%) 25,000 14
------------
123
------------
DATA PROCESSING & REPRODUCTION
Econet Wireless Holdings 4,200,000 688
------------
ENERGY SOURCES
Wankie Colliery Co., Ltd. 7,871,900 573
------------
FOOD & HOUSEHOLD PRODUCTS
Interfresh Ltd. 15,000,000 410
------------
FOREST PRODUCTS & PAPER
PG Industries Ltd. 1,713,446 67
------------
LEISURE & TOURISM
Zimbabwe Sun Ltd. 9,538,738 695
------------
MERCHANDISING
Meikles Africa Ltd. 5,444,880 5,593
------------
MISC. MATERIALS & COMMODITIES
Bindura Nickel Corp., Ltd. 1,815,150 448
------------
MULTI-INDUSTRY
TA Holdings Ltd. 11,432,100 268
Trans Zambesi Industries Ltd. 6,012,410 409
(a)Trans Zambesi Industries Ltd. ADR 2,560,000 174
------------
851
------------
14,534
------------
- -------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost U.S.$197,035) 170,969
------------
- -------------------------------------------------------------------------------
7
<PAGE>
<CAPTION>
NO. OF VALUE
RIGHTS (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
RIGHTS (0.1%)
- -------------------------------------------------------------------------------
TUNISIA (0.1%)
BANKING
Banque de l'Habitat (Cost U.S.$--@) 75,000 U.S.$ 103
------------
- -------------------------------------------------------------------------------
<CAPTION>
NO. OF
WARRANTS
- -------------------------------------------------------------------------------
<S> <C> <C>
WARRANTS (0.0%)
- -------------------------------------------------------------------------------
SOUTH AFRICA (0.0%)
INDUSTRIAL COMPONENTS
Leisureplanet Holdings 'B',
expiring 1/24/01 (Cost U.S.$--@) 5 --@
------------
- -------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
(000)
- -------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (3.0%)
Ghana Cedi GHC 1,892,638 701
South African Rand ZAR 26,280 4,378
Zimbabwe Dollar ZWD 3,357 87
------------
(Cost U.S.$5,136) 5,166
------------
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (102.5%)
(Cost U.S.$202,171) 176,238
------------
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-2.5%)
Other Assets U.S.$ 4,770
Liabilities (9,076) (4,306)
---------------- ------------
- -------------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 13,891,121 issued and
outstanding U.S.$0.01 par value
shares (100,000,000 shares authorized) U.S.$171,932
------------
- -------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S.$ 12.38
------------
- -------------------------------------------------------------------------------
</TABLE>
(a) - 144A Security - certain conditions for public sale may exist.
@ - Value is less than U.S.$500.
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
- -------------------------------------------------------------------------------
8
