<PAGE>
-------------------------------------------------------------------------------
MORGAN STANLEY
DEAN WITTER
AFRICA INVESTMENT
FUND, INC.
-------------------------------------------------------------------------------
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
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
Harold J. Schaaff, Jr.
PRESIDENT AND DIRECTOR
John D. Barrett II
DIRECTOR
Gerard E. Jones
DIRECTOR
Graham E. Jones
DIRECTOR
John A. Levin
DIRECTOR
Andrew McNally IV
DIRECTOR
William G. Morton, Jr.
DIRECTOR
Samuel T. Reeves
DIRECTOR
Fergus Reid
DIRECTOR
Frederick O. Robertshaw
DIRECTOR
Stefanie V. Chang
VICE PRESIDENT
Arthur J. Lev
VICE PRESIDENT
Joseph P. Stadler
VICE PRESIDENT
Mary E. Mullin
SECRETARY
Belinda A. Brady
TREASURER
Robin L. Conkey
ASSISTANT 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
Clifford Chance Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
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INDEPENDENT ACCOUNTANTS
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
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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/im.
<PAGE>
LETTER TO SHAREHOLDERS
----------
For the nine months ended September 30, 2000, the Morgan Stanley Dean Witter
Africa Investment Fund, Inc. (the "Fund") had a total return, based on net
asset value per share, of -22.46%. For the period from the Fund's
commencement of operations on February 14, 1994 through September 30, 2000,
the Fund's total return, based on net asset value per share, was 31.55%. On
September 30, 2000, the closing price of the Fund's shares on the New York
Stock Exchange was $8 1/16, representing a 28.4% discount to the Fund's net
asset value per share.
SOUTH AFRICA
The South African market fell by 16.6% for the nine months ended September
30, 2000 and rose 2.7% for the third quarter, as measured by the Johannesburg
All Share Index. The market was resilient in the face of weak performance in
other emerging markets, led by strength in oil, diamond and platinum stocks.
The economic recovery that the market continues to anticipate has failed to
materialize in any significant way, prompting more downward revisions of
growth. The market has now acknowledged that the economy will probably be
subdued this year, growing around 2.8%, before a jump to 3.5% in 2001. The
reticence of South African consumers to increase spending and the significant
slack capacity in the manufacturing side of the economy have overwhelmed the
effect of the sharp interest rate cuts throughout 1999.
The exchange rate continued to track the Euro relatively closely, and thus
weakened slightly against the dollar during the third quarter and
significantly on a year-to-date basis. Inflation numbers have continued to be
negatively affected by high oil prices, coming in around the 8.5% level
(though only 6.5% if one excludes the effects of food and energy), preempting
any possibility for an interest rate cut. The country has no inflation target
for this year, but rather a range of 3% to 6% by the end of 2002, which we
believe is achievable. Real interest rates remain relatively high at about
5.5%, and are one of the key obstacles to generating higher growth.
We are positive about the market going forward, though we believe it will
continue to be driven by specific bottom-up stories rather than a general
reactivation of economic activity. Many commodity stocks should continue to
benefit from a weaker rand, though some metal and raw material prices may
suffer as a result of decelerating global growth. Valuations are supportive
and earnings growth strong, falling in the 15% to 20% range on average.
EGYPT
The Egyptian market, as measured by the EFG Index, fell 40.1% during the
first nine months of the year. Investors have reacted negatively to concerns
about the currency, the state of the economy, the lack of a coherent economic
policy, inadequate transparency in official statistics and poor earnings
releases.
The availability of hard currency in the market has improved steadily
throughout the year, especially after the decision to abandon the exchange
rate peg to the dollar in June. The Egyptian pound slipped approximately 3.4%
against the dollar during the third quarter of the year, as the market
struggled to find a clearing level. The Central bank is sporadically
releasing reserves to satisfy demand for dollars. Nevertheless, it has yet to
articulate a formal policy on the exchange rate and its use of reserves which
stand at about U.S.$15 billion.
Economic growth clearly decelerated over the past twelve months. As interest
rates rose, fiscal spending was reined in and confidence waned. We estimate
that the economy will post a 2% growth rate during calendar 2000, a sharp
fall from the 4% to 6% growth rates the country had generated in the past.
The economy appears to have bottomed out, however, as interest rates have
retreated, and some key sectors are seeing improved trading conditions.
Corporate earnings have been overwhelmingly disappointing in 2000 (the market
has revised its EPS growth forecasts from 30% to about 12%), but we expect a
better performance in 2001.
While we consider the economy is poised for a cyclical upturn, we firmly believe
that the pivotal issue in Egypt is government policy and accountability. The
economic authorities have failed to formulate a coherent policy framework to
address the problems on the currency, fiscal and monetary fronts. Initiatives
are introduced on a piecemeal basis and generally are too gradual in nature to
have any significant effect on events or sentiment. Furthermore, government
credibility suffered a severe blow by the revision of the fiscal deficit figures
for the year ending June 1999 to 4.4%, from 1.3%. Economic growth figures are
also
2
<PAGE>
questioned by the market, as the government apparently refuses to publish a
growth rate under 4%.
We are not very enthusiastic about the prospect for significant improvements
in government policy in the short term, but are encouraged by the very
attractive valuations and very poor sentiment currently in the market. We
believe that 2001 will bring improved earnings performance from our key
Egyptian holdings, and the market's low expectations may be surpassed.
Although our focus on the telecommunications sector has not paid off this
year, we strongly feel the secular growth story remains intact and we remain
overweight.
MAURITIUS
The SEMDEX Index fell 8.5% during the first nine months of the year, as
investor interest in the market remained subdued and tourism companies
reported disappointing earnings. The Mauritian economy has staged a
remarkable comeback this year after a sluggish year in 1999 resulting from
drought and high interest rates. The economy is poised to grow at 8% in 2000
and a more moderate 6% next year, as the agriculture sector bounced back more
quickly than expected and inflation eased, allowing the Central bank to cut
interest rates. Presidential elections will be held this year, and the two
main opposition parties have come together in what appears to be a very
strong bid to defeat the incumbent party. We are hopeful that the next
administration will be more dynamic and forward looking than the present, as
little has been achieved in the areas of privatization and economic
deregulation over the past few years. Nonetheless, the Mauritius market
remains one of our favorites, combining healthy economic prospects, strong
management, good governance and low valuations.
ZIMBABWE
The Zimbabwe market posted a very strong third quarter, rising 55.5% (though
it is still down 20.7% from the start of the year) as measured by the
Industrial Index and using the parallel market exchange rate. The stock
market returned as the preferred place for local investors to hedge
themselves against an inflation rate that continues to hover around 55% and
to gain some degree of cover to a declining exchange rate. The aftermath of
the parliamentary elections where the opposition party, the MDC, gained a
strong foothold has been relatively tranquil, though the ability of the two
parties to work together is still in question. President Mugabe named a few
technocrats to key positions in his cabinet after the elections, in an
attempt to appease the financial community and better address some of the
country's critical economic woes. A currency devaluation was engineered by
the new cabinet, with the official exchange rate for the Zimbabwe dollar
sliding from $38.4 to about $53.3 Zimbabwe dollars to the U.S. dollar.
Transactions, however, are still taking place significantly above these
levels. We continue to believe that an eventual change in the political
status quo will lead to better economic times, prompting a strong market
reaction.
GHANA
The Ghanaian market fell 49.9% during the first nine months of the year, as
measured by the Databank Index, mainly as a result of a weaker currency. Low
cocoa and high oil prices have had a profound impact on the external balances
of the country, depleting reserves and creating a hard currency shortage that
has not been solved by a weaker exchange rate. Furthermore, donors and
multilateral institutions such as the IMF have stood on the sidelines this
year, as they await the outcome of the December presidential elections. The
resumption of these flows will prove critical in addressing this little
publicized crisis, though a long term solution involves the slow process of
diversifying the economy away from cocoa and gold and implementing a
consistently prudent fiscal policy. Valuations have reached ridiculously low
levels, with some stocks trading at 1 times to 1.5 times earnings, and we
feel that with the stabilization of the currency and the removal of political
uncertainty, the market can perform strongly.
BOTSWANA
The Domestic Companies Index in Botswana fell 3.8% during the first nine
months of the year, as a result of weakness of the currency against the
dollar. The market continues to be supported by a strong macroeconomic
environment and stable flows into fund managers. The Fund's holdings in the
brewery sector have posted very strong operating figures, yet have performed
more poorly than the market, as foreign holders of the stock continue to
liquidate their positions.
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 month period ended
September 30, 2000, the Fund repurchased 555,000 shares or 4.00% of its
Common Stock at an average price per share of $8.69, excluding $28,000 in
commissions paid, and an average discount of 30.36% from net asset value per
share. For the year ended December 31, 1999, the Fund repurchased 455,300
shares or 3.17% of its Common Stock at an average price per share of $9.51,
excluding $21,000 in commissions paid, and an average discount of 23.59%
3
<PAGE>
from net asset value per share. Since the inception of the program, the Fund has
repurchased 2,112,356 shares or 13.67% of its Common Stock at an average price
per share of $9.98, excluding $102,000 in commissions paid, and an average
discount of 26.36% 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/ Harold J. Schaaff, Jr.
Harold J. Schaaff, Jr.
PRESIDENT AND DIRECTOR
October 2000
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.
FOREIGN INVESTING INVOLVES CERTAIN RISKS, INCLUDING CURRENCY FLUCTUATIONS AND
CONTROLS, RESTRICTIONS ON FOREIGN INVESTMENTS, LESS GOVERNMENTAL SUPERVISION
AND REGULATION, LESS LIQUIDITY AND THE POTENTIAL FOR MARKET VOLATILITY AND
POLITICAL INSTABILITY.
-------------------------------------------------------------------------------
DAILY NET ASSET AND MARKET VALUES, AS WELL AS MONTHLY PORTFOLIO INFORMATION
FOR THE FUND, ARE AVAILABLE ON OUR WEBSITE AT www.msdw.com/im.
4
<PAGE>
Morgan Stanley Dean Witter Africa Investment Fund, Inc.
Investment Summary as of September 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
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<TABLE>
<CAPTION>
HISTORICAL TOTAL RETURN (%)
INFORMATION ---------------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2)
----------------------------- ----------------------------
AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL
---------- ------- ---------- -------
<S> <C> <C> <C> <C>
YEAR TO DATE -22.28% -- -22.46% --
ONE YEAR -12.19 -12.19% -7.22 -7.22%
FIVE YEAR 3.40 0.67 10.46 2.01
SINCE INCEPTION* -5.73 -0.89 31.55 4.22
</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 2000
------ ------ ------ ------ ------ ------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value Per Share....... $14.43 $17.05 $16.86 $14.45 $11.69 $14.51 $11.25
Market Value Per Share ......... $11.38 $12.88 $13.63 $11.50 $8.38 $10.38 $8.06
Premium/(Discount) ............. -21.1% -24.5% -19.2% -20.4% -28.3% -28.5% -28.4%
Income Dividends ............... $ 0.54 $ 0.96 $ 0.14 $ 0.30 $ 0.86 $ 0.30 $ 0.00#
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% 27.34% -22.46%
</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.
5
<PAGE>
Morgan Stanley Dean Witter Africa Investment Fund, Inc.
Portfolio Summary as of September 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
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DIVERSIFICATION OF TOTAL INVESTMENTS
[PIE CHART]
<TABLE>
<S> <C>
Equity Securities (94.3%)
Short-Term Investments (5.7%)
</TABLE>
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INDUSTRIES
[PIE CHART]
<TABLE>
<S> <C>
Banks (17.2%)
Beverages (9.8%)
Diversified Financials (4.5%)
Hotels Restaurants & Leisure (2.1%)
Industrial Conglomerates (9.4%)
IT Consulting & Services (3.2%)
Metals & Mining (12.5%)
Multiline Retail (2.1%)
Oil & Gas (6.9%)
Other* (18.2%)
Wireless Telecommunication Services (14.1%)
</TABLE>
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COUNTRY WEIGHTINGS
[PIE CHART]
<TABLE>
<S> <C>
Botswana (4.8%)
Egypt (15.7%)
Ghana (5.6%)
Ivory Coast (0.8%)
Kenya (1.0%)
Mauritius (11.6%)
Morocco (1.4%)
Other* (6.7%)
South Africa (40.5%)
Tunisia (1.3%)
Zimbabwe (10.6%)
</TABLE>
-------------------------------------------------------------------------------
TEN LARGEST HOLDINGS**
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. Egyptian Company for Mobile Services (Egypt) 9.9%
2. Sasol Ltd. (South Africa) 6.9
3. State Bank of Mauritius Ltd. (Mauritius) 6.7
4. Anglo American Platinum Corp., Ltd. (South Africa) 5.4
5. Sechaba Breweries Ltd. (Botswana) 4.8
6. De Beers (South Africa) 3.9
7. Nedcor Ltd. (South Africa) 3.6
8. Dimension Data Holdings plc (South Africa) 3.2
9. Remgro Ltd. (South Africa) 2.6
10. M-Cell Ltd. (South Africa) 2.6
----------
49.6%
----------
----------
</TABLE>
* Other includes industries/countries not shown separately and other
assets and liabilities.
** Excludes short-term investments.
6
<PAGE>
INVESTMENTS (UNAUDITED)
-------
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (93.9%)
(Unless otherwise noted)
------------------------------------------------------------------------------
BOTSWANA (4.8%)
BEVERAGES
Sechaba Breweries Ltd. 7,877,940 U.S.$ 6,470
------------
------------------------------------------------------------------------------
EGYPT (15.7%)
BEVERAGES
Al-Ahram Beverages Co. GDR 218,100 3,124
------------
CONSTRUCTION MATERIALS
Suez Cement Co. 89,426 795
Suez Cement Co. GDR 46,156 393
------------
1,188
------------
ELECTRICAL EQUIPMENT
Egyptian Electrical Cables Co. 1,866 3
------------
FOOD PRODUCTS
North Cairo Flour Mills Co. 30 --@
------------
GAS UTILITIES
Egypt Gas Co. 45,000 2,021
------------
TOBACCO
Eastern Tobacco 70,334 1,421
------------
WIRELESS TELECOMMUNICATION SERVICES
Egyptian Company for
Mobile Services 605,509 13,426
------------
21,183
------------
------------------------------------------------------------------------------
GHANA (5.6%)
BANKS
Ghana Commercial Bank Ltd. 5,394,580 1,089
SSB Bank 6,938,100 1,839
Standard Chartered Bank
(Ghana) Ltd. 893,400 2,492
------------
5,420
------------
BEVERAGES
Ghana Breweries Ltd. 504,001 86
Guinness (Ghana) Ltd. 3,050,979 346
------------
432
------------
DIVERSIFIED FINANCIALS
Home Finance Co., Ltd. 2,814,840 337
------------
FOOD PRODUCTS
Unilever (Ghana) Ltd. 2,494,900 567
------------
METALS & MINING
Aluworks (Ghana) Ltd. 1,070,000 331
Ghana Pioneer Aluminum Factory 1,043,400 39
------------
370
------------
TOBACCO
British American Tobacco Co.
(Ghana) 6,749,660 373
------------
7,499
------------
------------------------------------------------------------------------------
IVORY COAST (0.8%)
FOOD PRODUCTS
Nestle Cote d'Ivoire 2,500 251
------------
INDUSTRIAL CONGLOMERATES
Filature Tissages Sacs 25,000 480
------------
------------------------------------------------------------------------------
------------------------------------------------------------------------------
TEXTILES & APPAREL
SOC Ivoirienne de Coco Rappe 24,000 366
------------
1,097
------------
------------------------------------------------------------------------------
KENYA (1.0%)
AUTO COMPONENTS
Firestone East Africa Ltd. 2,756,950 419
------------
BANKS
Kenya Commercial Bank Ltd. 991,326 339
------------
BUILDING PRODUCTS
Athi River Mining Ltd. 3,262,500 186
------------
DIVERSIFIED FINANCIALS
National Industrial Credit Bank 389,438 121
------------
ELECTRIC UTILITIES
Kenya Power & Lighting Co., Ltd. 150,000 83
------------
FOOD & DRUG RETAILING
Uchumi Supermarket Ltd. 297,107 170
------------
1,318
------------
------------------------------------------------------------------------------
MALAWI (0.1%)
FOOD PRODUCTS
Sugar Corporation of Malawi 2,160,000 179
------------
------------------------------------------------------------------------------
MAURITIUS (11.6%)
BANKS
Mauritius Commercial Bank 782,036 2,505
State Bank of Mauritius Ltd. 14,588,822 9,068
------------
11,573
------------
HOTELS RESTAURANTS & LEISURE
New Mauritius Hotels Ltd. 1,753,850 2,668
------------
INDUSTRIAL CONGLOMERATES
Rogers and Co., Ltd. 408,031 1,447
------------
15,688
------------
------------------------------------------------------------------------------
MOROCCO (1.4%)
BANKS
Wafabank 11,000 944
------------
INDUSTRIAL CONGLOMERATES
ONA 8,650 935
------------
1,879
------------
------------------------------------------------------------------------------
NIGERIA (0.0%)
BANKS
United Bank for Africa 550,000 63
------------
------------------------------------------------------------------------------
SOUTH AFRICA (40.5%)
BANKS
Nedcor Ltd. 227,537 4,894
------------
DIVERSIFIED FINANCIALS
BOE Ltd. 2,151,161 1,228
------------
HOUSEHOLD DURABLES
Ellerine Holdings Ltd. 587,500 2,019
------------
INDUSTRIAL CONGLOMERATES
Bidvest Group Ltd. 483,762 3,319
Remgro Ltd. 599,590 3,544
Venfin Ltd. 599,590 2,099
------------
8,962
------------
------------------------------------------------------------------------------
7
<PAGE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------------------------
<S> <C> <C>
SOUTH AFRICA (CONTINUED)
INSURANCE
Liberty Group Ltd. 221,100 U.S.$ 1,940
Metropolitan Life Ltd. 408,200 479
------------
2,419
------------
IT CONSULTING & SERVICES
Dimension Data Holdings plc 471,988 4,383
------------
MEDIA
MIH Ltd. 57,100 1,709
------------
METALS & MINING
Anglo American Platinum
Corp., Ltd. 189,300 7,299
De Beers (Centenary Linked Unit) 187,706 5,219
Impala Platinum Holdings Ltd. 48,600 2,109
------------
14,627
------------
OIL & GAS
Sasol Ltd. 1,160,740 9,170
Sasol Ltd. ADR 18,000 144
------------
9,314
------------
SPECIALTY RETAIL
Edgars Consolidated Stores Ltd. 172,300 889
Profurn Ltd. 1,312,700 782
------------
1,671
------------
WIRELESS TELECOMMUNICATION SERVICES
M-Cell Ltd. 854,600 3,500
------------
54,726
------------
------------------------------------------------------------------------------
TUNISIA (1.3%)
DIVERSIFIED FINANCIALS
Banque de l'Habitat 95,151 809
Tunsie Leasing SA 15,000 416
------------
1,225
------------
ELECTRICAL EQUIPMENT
Siame 12,000 543
------------
1,768
------------
------------------------------------------------------------------------------
ZAMBIA (0.5%)
FOOD PRODUCTS
Zambia Sugar Co., Ltd. 151,371,609 435
------------
METALS & MINING
Zambia Consolidated Copper
Mines Ltd. 586,700 238
------------
673
------------------------------------------------------------------------------
ZIMBABWE (10.6%)
BEVERAGES
Delta Corp., Ltd. 11,465,293 3,144
------------
DIVERSIFIED FINANCIALS
NMBZ Holdings Ltd. 1,168,000 3,203
------------
FOOD PRODUCTS
Interfresh Ltd. 15,000,000 145
------------
HOTELS RESTAURANTS & LEISURE
Zimbabwe Sun Ltd. 10,053,378 227
------------
------------------------------------------------------------------------------
------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES
TA Holdings Ltd. 11,432,100 673
Trans Zambezi Industries Ltd. 8,572,410 207
------------
880
------------
METALS & MINING
Bindura Nickel Corp., Ltd. 3,389,956 1,389
Wankie Colliery Co., Ltd. 7,871,900 216
------------
1,605
------------
MULTILINE RETAIL
Meikles Africa Ltd. 3,528,880 2,789
------------
TOBACCO
T.S.L., Ltd. 3,477,000 196
------------
WIRELESS TELECOMMUNICATION SERVICES
Econet Wireless Holdings Ltd. 7,693,000 2,115
------------
14,304
------------
------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost U.S.$162,977) 126,847
------------
------------------------------------------------------------------------------
FACE
AMOUNT
(000)
------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (5.3%)
------------------------------------------------------------------------------
REPURCHASE AGREEMENT
(a)Chase Securities, Inc., 6.25% dated
9/29/00, due 10/02/00
(Cost U.S.$7,130) U.S.$ 7,130 7,130
------------
------------------------------------------------------------------------------
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (0.4%)
British Pound GBP 121 179
Egyptian Pound EGP 6 2
South African Rand ZAR 3 --@
Zimbabwe Dollar ZWD 23,156 373
------------
(Cost U.S.$547) 554
------------
------------------------------------------------------------------------------
8
<PAGE>
<CAPTION>
AMOUNT AMOUNT
(000) (000)
------------------------------------------------------------------------------
<S> <C> <C>
TOTAL INVESTMENTS (99.6%)
(Cost U.S.$170,654) U.S.$134,531
------------
------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.4%)
Other Assets U.S.$ 8,260
Liabilities (7,729) 531
------------ ------------
------------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 12,002,509 issued and
outstanding U.S.$0.01 par value shares
(100,000,000 shares authorized) U.S.$135,062
============
------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S.$ 11.25
============
------------------------------------------------------------------------------
</TABLE>
(a) -- The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices at the date of this
schedule of investments. The investment in the repurchase agreement is
through participation in a joint account with affiliated funds.
@ -- Value is less than U.S.$500.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
-------------------------------------------------------------------------------
SEPTEMBER 30, 2000 EXCHANGE RATES:
-------------------------------------------------------------------------------
EGP Egyptian Pound 3.563 = U.S. $1.00
GBP British Pound 0.676 = U.S. $1.00
ZAR South African Rand 7.215 = U.S. $1.00
ZWD Zimbabwe Dollar 62.000 = U.S. $1.00
-------------------------------------------------------------------------------
9
