MERRILL LYNCH
EMERGING TIGERS
FUND, INC.
FUND LOGO
Annual Report
November 30, 1996
<PAGE>
Investing in emerging market securities involves a number of risk
factors and special considerations, including restrictions on
foreign investments and on repatriation of capital invested in
emerging markets, currency fluctuations, and potential price
volatility and less liquidity of securities traded in emerging
markets. In addition, there may be less publicly available
information about the issuers of securities, and such issuers may
not be subject to accounting, auditing and financial reporting
standards and requirements comparable to those to which US companies
are subject. Therefore, the Fund is designed as a long-term invest-
ment for investors capable of assuming the risks of investing in
emerging markets. The Fund should be considered as a vehicle for
diversification and not as a complete investment program. Please
refer to the prospectus for details.
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Statements and other information herein are as dated and are subject
to change.
Merrill Lynch
Emerging Tigers Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
<PAGE>
MERRILL LYNCH EMERGING TIGERS FUND, INC.
Asset Allocation
As a Percentage* of
Net Assets as of
November 30, 1996
Map Depicting the Fund's Asset Allocation As a Percentage* of Net
Assets as of November 30, 1996
INDIA 5.0%
SRI LANKA 0.2%
INDONESIA 9.8%
MALAYSIA 38.0%
THAILAND 7.1%
SINGAPORE 18.7%
CHINA 6.9%
PHILIPPINES 14.3%
INDOCHINA 0.8%
[FN]
*Total may not equal 100%.
DEAR SHAREHOLDER
For the 12-month period ended November 30, 1996, Merrill Lynch
Emerging Tigers Fund, Inc.'s Class A Shares had a total return of
+16.43%, compared to a +16.12% return for the unmanaged Southeast
Asia Emerging Markets Index. Since their inception on June 10, 1996
through November 30, 1996, the Fund's Class B, Class C and Class D
Shares had total returns of 0.00%, -0.06% and +0.32%, respectively.
(Fund results shown do not include sales charges and would be lower
if sales charges were included. Complete performance information,
including aggregate and average annual total returns, can be found
on pages 4--6 of this report to shareholders.)
Fiscal Year in Review
The "emerging tiger" stock markets experienced a strong uptrend
during the 12-month period ended November 30, 1996, punctuated by
occasional setbacks. (As defined in the Fund's prospectus, the
emerging tiger countries consist of all countries in the Pacific
Basin and Asia other than Japan, Taiwan, Australia, New Zealand,
Hong Kong and Korea.) The emerging tiger stock markets had bottomed
out in November 1995 and rose in January 1996 as positive investor
sentiment regarding the US economy, stock market and interest rates
also improved the outlook for the emerging Asian economies. However,
concerns of an overheating US economy and higher interest rates led
to a sell-off in the emerging tiger stock markets in February.
<PAGE>
The emerging tiger stock markets were rather lackluster until the
final quarter of the fiscal year. The one exception was Malaysia,
where strong liquidity inflows buoyed share prices. In the final
months of the fiscal year, there was mounting evidence of a steady,
non-inflationary rate of economic growth in the United States. As a
result, investors turned their focus to the positive fundamental
underpinnings of the emerging tiger stock markets. For example,
price/earnings multiples, on average, of the emerging tiger stock
markets are no longer at a premium to the US stock market.
Therefore, the emerging Asian stock markets appear historically
undervalued.
Throughout most of the fiscal year we maintained an underweighted
position in Malaysia. Despite this allocation, the Fund's Class A
Shares still outperformed the Southeast Asia Emerging Markets Index.
As we anticipated, an overheating Malaysian economy led to higher
interest rates during 1996. However, the Malaysian stock market
continued to rise, contrary to our expectations, because the
government's loose fiscal policy fostered continued growth in bank
credit, and the liquidity created flowed into the stock market.
At present, it appears as if the Malaysian government has
successfully engineered an economic slowdown without shrinking
business activity too drastically. However, we do not anticipate
that interest rates will be cut in early 1997, since it appears that
tight monetary conditions will be maintained. As a result, liquidity
may evaporate and manufacturing growth decline. Therefore, we are
maintaining a slightly underweighted position in Malaysia, although
we increased holdings during the last two months of the Fund's
fiscal year. New positions in Malaysia include the electric utility
Tenaga Nasional BHD, which could have higher earnings next year
because of possible rate increases. The Fund's other new Malaysian
positions are the profitable newspaper publisher, Star Publications
(Malaysia) BHD, and Amway (Malaysia) Holdings BHD, the consumer
products company.
The negative effect of the Fund's underweighting in Malaysia was
offset by overweighted positions in the Philippines and The People's
Republic of China. Both stock markets were among the top-performing
emerging tiger stock markets during the fiscal year. The Philippines
stock market rose approximately 20% from the beginning of 1996
through November month-end. Our newest Philippine position is
Uniwide Holdings, Inc., a warehouse-concept retailer.
We have been heavily overweighted in China for some time, which
benefited Fund performance as Chinese share prices rose as the
economic austerity program ended and investors looked forward to a
possible monetary easing in the months ahead. A less-restrictive
monetary policy could flow through the Chinese economy in 1997,
bolstering industrial production and consumer spending. The Fund's
investments in China are mostly through so-called "red chips", that
is, Hong Kong-listed companies whose profits are largely earned in
China. These companies also have a Chinese government entity as a
majority shareholder. The Fund's new positions in China are the
property developer China Resources Enterprise Ltd., and New World
Infrastructure Ltd., a builder of roads, power plants and bridges.
<PAGE>
Two of the worst-performing stock markets in Asia were Singapore and
Thailand. We underweighted both these markets during the fiscal
year, which benefited the Fund's total return. Singapore experienced
a slowdown in economic growth because declining worldwide demand led
to a sluggish electronics industry. In addition, there were
widespread expectations of a decline in residential property prices.
The Fund has a small position in Thailand, and our Thai investments
outperformed their stock market because of our focus on defensive
stocks and convertible securities. The Thai economy is going through
a contraction as corporate earnings growth is down to the low single-
digit level. Domestic and external demand are depressed, and the
current account deficit remains stubbornly high. The key factor for
the Thai economy is export growth, which must improve in order to
stimulate business activity. Higher world prices for foodstuffs,
another significant Thai export, are also needed for a pick-up in
the Thai economy. At present, we believe that the recovery in the
Thai economy will occur more slowly than is generally expected.
The Fund continues to have a slightly overweighted exposure in
Indonesia, which also benefited performance. It appears that
Indonesia will experience a pick-up in the business cycle in 1997.
The rate of inflation is more subdued, and interest rates may fall.
We have selected our Indonesian investments in financial,
infrastructure-related and consumer companies based on positive
stock-specific fundamental factors.
We maintained an underweighted position in India throughout the
fiscal year, which aided Fund performance. Political problems,
constrained liquidity, and worse-than-expected corporate earnings
results all negatively impacted the Indian stock market in 1996. We
expect to remain underweighted in India until there are signs of an
improvement in corporate earnings growth.
In Conclusion
At fiscal year-end, the Fund had only 5.1% of net assets in cash
reserves, reflecting the positive environment for the emerging tiger
stock markets. If the US interest rate environment remains stable,
we expect the emerging tiger stock markets' performances to reflect
the sound fundamentals of many of their economies. We continue to
see long-term investment opportunities in Asia because its emerging
markets represent the fastest-growing economies in the world.
During the current fiscal year, shareholders of the closed-end
Emerging Tigers Fund, Inc. approved conversion to open-end status.
This change took effect on June 10, 1996.
We thank you for your investment in Merrill Lynch Emerging Tigers
Fund, Inc., and we look forward to serving your investment needs
throughout the Fund's new fiscal year and beyond.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Kara Tan Bhala)
Kara Tan Bhala
Vice President and Portfolio Manager
January 9, 1997
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after approximately 8 years. (There is no initial
sales charge for automatic share conversions.)
<PAGE>
* Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
11/30/96 8/31/96 11/30/95++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
Class A Shares++++ $15.59 $14.93 $13.40 +16.34% +4.42%
Class B Shares 15.53 14.90 15.53 0.00 +4.23
Class C Shares 15.52 14.89 15.53 - 0.06 +4.23
Class D Shares 15.58 14.92 15.53 + 0.32 +4.42
Class A Shares++++--Total Return +16.43(1) +4.42
Class B Shares--Total Return 0.00 +4.23
Class C Shares--Total Return - 0.06 +4.23
Class D Shares--Total Return + 0.32 +4.42
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
++Investment results and net asset values shown for Class B, Class C
and Class D Shares are since their inception on 6/10/96.
++++Performance results for per share net asset value of Class A
Shares prior to June 10, 1996 are for the period when the Fund was
closed-end.
(1)Percent change includes reinvestment of $0.011 per share ordinary
income dividends.
</TABLE>
<PAGE>
Total Return
Based on a
$10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to growth of an investment in the Southeast
Asia Emerging Markets Index. Beginning and ending values are:
3/04/94** 11/96
ML Emerging Tigers Fund++--
Class A Shares* $ 9,475 $10,564
Southeast Asia Emerging Markets
Index++++ $10,000 $10,482
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++The Fund invests primarily in equity securities of companies in
designated emerging market countries located in Asia and the Pacific
Basin.
++++This unmanaged Index, which is a blend of the Financial
Times/Standard & Poor's--Actuaries World Index and the IFC
Investible Index, is comprised of holdings in China, India,
Indonesia, Malaysia, Pakistan, the Philippines, Singapore, Sri Lanka
and Thailand.
<TABLE>
Average Annual
Total Return++
<CAPTION>
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
<S> <C> <C>
Year Ended 9/30/96 +5.79% +0.23%
Inception (3/04/94) through 9/30/96 +2.76 +0.63
<FN>
++Performance results for per share net asset value of Class A
Shares prior to June 10, 1996 are for the period when the Fund was
closed-end.
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
</TABLE>
<PAGE>
Aggregate
Total Return
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Inception (6/10/96) through 9/30/96 -3.54% -7.40%
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (6/10/96) through 9/30/96 -3.61% -4.57%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after one year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (6/10/96) through 9/30/96 -3.35% -8.42%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Performance
Summary--
Class A Shares++
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
3/4/94--12/31/94 $14.18 $14.02 -- -- + 0.12%
1995 14.02 14.09 -- $0.148 + 0.58
1/1/96--11/30/96 14.09 15.59 -- 0.011 +10.65
------
Total $0.159
<PAGE>
Cumulative total return as of 11/30/96: +11.41%**
<FN>
++Performance results for per share net asset value of Class A
Shares prior to June 10, 1996 are for the period when the Fund was
closed-end.
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable date, and do not
include sales charge; results would be lower if sales charge was
included.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Held/ Value Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
China Conglomerates 4,702,000 Guangdong Investments, Ltd. (a) $ 3,258,754 $ 3,922,641 2.0%
800,000 ++Shanghai Industrial Holdings Ltd. 2,028,044 2,602,341 1.3
------------ ------------ ------
5,286,798 6,524,982 3.3
Food 8,000,000 Tingyi (Cayman Islands) Holding Co. 2,087,068 2,038,414 1.0
Infrastructure 903,000 New World Infrastructure Ltd. 2,333,319 2,686,283 1.4
Real Estate 1,723,000 China Resources Enterprise Ltd. 2,080,520 2,473,686 1.2
Investment
Total Long-Term Investments in
China 11,787,705 13,723,365 6.9
India Auto & Truck 151,566 Tata Engineering Locomotive Co.
(GDR)** 2,164,511 1,515,660 0.8
Cement 126,000 Gujarat Ambuja Cement (GDR)** 1,000,612 945,000 0.5
Consumer Products 456,000 IFB Industries Ltd. 540,796 502,025 0.3
Engineering 26,000 Larsen & Toubro Ltd. (GDR)** 494,000 377,000 0.2
190,500 Larsen & Toubro Ltd. (GDR)** ++++ 2,924,175 2,762,250 1.4
------------ ------------ ------
3,418,175 3,139,250 1.6
<PAGE>
Financial Services 45,181 Housing Development Finance
Corporation Ltd. 2,812,530 2,689,255 1.3
113,200 Industrial Credit & Investment
Corporation of India Ltd. (GDR)** 1,315,950 976,350 0.5
------------ ------------ ------
4,128,480 3,665,605 1.8
Total Long-Term Investments in India 11,252,574 9,767,540 5.0
Indochina Mutual Funds 75,000 ++Southeast Asia Frontier Fund 397,500 367,500 0.2
141,300 ++Vietnam Frontier Fund 1,455,390 1,342,350 0.6
Total Long-Term Investments in
Indochina 1,852,890 1,709,850 0.8
Indonesia Banking 2,779,520 P.T. Bank International Indonesia 1,588,559 2,579,119 1.3
Building & 4,550,000 P.T. Citra Marga Nusaphala 3,040,036 3,833,724 1.9
Construction
Food 2,900,000 P.T. Davomas Abadi 'Foreign' 2,530,022 2,536,263 1.3
Insurance 3,374,000 P.T. Lippo Life Insurance 3,795,842 2,806,869 1.4
Miscellaneous-- 107,000 P.T. Modern Photo Film 607,017 268,185 0.1
Consumer
Telecommunications 56,600 P.T. Telekomunikasi Indonesia
(Persero) (ADR)* 1,178,424 1,860,725 0.9
Tobacco 1,107,500 P.T. Hanjaya Mandala Sampoerna 1,958,010 5,646,171 2.9
Total Long-Term Investments in
Indonesia 14,697,910 19,531,056 9.8
Malaysia Automobiles 410,000 Edaran Otomobil Nasional BHD 3,983,110 4,040,768 2.0
Banking 801,600 Arab-Malaysian Merchant Bank BHD 3,624,193 6,377,265 3.2
3,498,666 Public Bank BHD 'Foreign' 5,612,875 7,477,853 3.7
------------ ------------ ------
9,237,068 13,855,118 6.9
Building & 1,907,000 I.J.M. Corp. BHD 3,299,946 4,340,095 2.2
Construction
Conglomerates 3,297,000 Renong BHD 4,727,193 6,081,148 3.0
US$ 465,000 Renong BHD, 2.50% due 1/15/2005 508,013 551,025 0.3
------------ ------------ ------
5,235,206 6,632,173 3.3
<PAGE>
Consumer 340,500 ++Amway (Malaysia) Holdings BHD 2,073,026 2,021,571 1.0
Products
Engineering & US$ 4,225,000 United Engineering, Ltd., 2% due 4,903,317 6,527,625 3.3
Construction 3/01/2004
Industrial 508,475 O.Y.L. Industries BHD 2,833,447 5,282,988 2.7
Leisure 1,977,000 Berjaya Sports TOTO BHD 3,474,963 9,390,065 4.7
776,000 Resorts World BHD 4,528,444 3,900,732 2.0
------------ ------------ ------
8,003,407 13,290,797 6.7
Metal 461,000 ++Timah Langat BHD 2,499,858 2,536,276 1.3
Publishing 716,000 Star Publications (Malaysia) BHD 2,644,465 2,734,771 1.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Held/ Value Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Malaysia Real Estate 980,000 IOI Properties BHD $ 3,555,471 $ 3,219,474 1.6%
(concluded) 1,217,500 Land & General BHD (Ordinary) 1,521,421 2,963,636 1.5
692,000 Malaysian Resources Corp. BHD 2,988,836 3,040,253 1.5
------------ ------------ ------
8,065,728 9,223,363 4.6
Telecommuni- US$ 2,090,000 Telekom Malaysia BHD, 4% due
cations 10/03/2004 2,116,225 2,215,400 1.1
Utilities-- 646,000 Tenaga Nasional BHD 2,968,605 2,940,431 1.5
Electric
Total Long-Term Investments in
Malaysia 57,863,408 75,641,376 38.0
Philippines Banking 19,716 Metropolitan Bank & Trust Company 124,047 457,570 0.2
US$ 3,790,000 Metropolitan Bank & Trust Company,
2.75% due 9/10/2000 4,813,078 4,858,780 2.5
------------ ------------ ------
4,937,125 5,316,350 2.7
Beverages 740,740 San Miguel Corp. 'B' 2,547,424 2,959,127 1.5
Conglomerates 219,900 ++Benpres Holdings Corp. (GDR)**++++ 2,159,018 1,616,265 0.8
<PAGE>
Engineering & 5,475,600 ++DMCI Holdings Inc. 3,519,079 3,749,840 1.9
Construction
Food & Beverage 4,040,800 Universal Robina Corp. 3,047,558 1,998,570 1.0
International 4,134,900 ++International Container Terminal
Trade Services, Inc. 3,955,596 3,185,654 1.6
Real Estate US$ 1,315,000 AC International Finance, 1.74%
due 12/08/2000 (c) 1,226,100 1,153,913 0.6
1,182,500 Ayala Land, Inc. 'B' 1,256,677 1,282,196 0.6
------------ ------------ ------
2,482,777 2,436,109 1.2
Retail 7,486,346 SM Prime Holdings, Inc. 1,229,713 1,794,399 0.9
9,670,000 ++Uniwide Holdings, Inc. 1,792,055 1,839,522 0.9
------------ ------------ ------
3,021,768 3,633,921 1.8
Utilities-- 432,159 Manila Electric Co. (MERALCO) 'B' 2,913,550 3,206,171 1.6
Electric
Total Long-Term Investments
in the Philippines 28,583,895 28,102,007 14.1
Singapore Airlines 516,000 Singapore Airlines Ltd. 'Foreign' 4,907,692 4,854,740 2.4
Banking 457,000 Development Bank of Singapore Ltd. 4,665,122 5,895,723 3.0
683,400 United Overseas Bank Ltd. 4,965,842 7,257,776 3.6
------------ ------------ ------
9,630,964 13,153,499 6.6
Beverages 196,000 Fraser & Neave Ltd. 1,858,848 2,039,629 1.0
Industrial 635,000 Clipsal Industries Ltd. 1,767,649 2,032,000 1.0
Publishing & 339,800 Singapore Press Holdings Ltd. 4,867,466 6,418,175 3.2
Broadcasting
Real Estate 350,000 City Developments Ltd. 2,826,650 3,093,371 1.6
1,593,000 DBS Land Ltd. 4,715,480 5,677,121 2.9
------------ ------------ ------
7,542,130 8,770,492 4.5
Total Long-Term Investments in
Singapore 30,574,749 37,268,535 18.7
Sri Lanka Finance 90,833 Development Finance Corp. 718,327 458,980 0.2
Total Long-Term Investments in
Sri Lanka 718,327 458,980 0.2
<PAGE>
Thailand Banking US$ 1,992,000 Bangkok Bank Public Company Ltd.,
3.25% due 3/03/2004 2,321,875 2,051,760 1.0
171,920 Bangkok Bank Public Company Ltd.
'Foreign' 1,558,359 1,965,723 1.0
303,100 Thai Farmers Bank, Ltd. 'Foreign' 2,089,374 2,587,353 1.3
53,512 Thai Farmers Bank, Ltd. 'Foreign'
(Warrants)(b) 53,003 52,385 0.0
------------ ------------ ------
6,022,611 6,657,221 3.3
Building & 134,000 Land & House Public Co. 'Foreign' 2,930,452 1,059,911 0.5
Construction
Communications 65,300 Advanced Info Services PLC 534,460 761,978 0.4
Financial Services 323,600 Finance One Co., Ltd. 'Foreign' 193,850 925,006 0.5
Mutual Funds 2,800,000 Ruam Pattana Fund II 'Foreign' 1,953,894 1,288,276 0.7
Oil--Related 229,500 PTT Exploration and Production
Public Co. 'Foreign' 1,835,627 3,378,965 1.7
Total Long-Term Investments in
Thailand 13,470,894 14,071,357 7.1
Total Long-Term Investments 170,802,352 200,274,066 100.6
Face
Amount Short-Term Securities
Commercial US$ 136,000 General Electric Capital Corp., 5.70% 135,957 135,957 0.1
Paper*** due 12/02/1996
US Government & 10,000,000 Federal Home Loan Mortgage Corp.,
Agency 5.22% due 12/11/1996 9,984,050 9,984,050 5.0
Obligations***
Total Investments in Short-Term
Securities 10,120,007 10,120,007 5.1
Total Investments $180,922,359 210,394,073 105.7
============
Liabilities in Excess of Other Assets (11,290,257) (5.7)
------------ ------
Net Assets $199,103,816 100.0%
============ ======
<PAGE>
<FN>
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***Commercial Paper and certain US Government & Agency Obligations
are traded on a discount basis; the interest rates shown are the
discount rates paid at the time purchase by the Fund.
(a)Security is regarded as an investment in China. A company is
considered to be in an emerging market Asia-Pacific country when at
least 50% of the company's non-current assets, capitalization, gross
revenues or profits in any one of the two most recent fiscal years
represents assets or activities located in such countries.
(b)Warrants entitle the Fund to purchase a predetermined number of
shares of Common Stock. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration
date.
(c)Represents a zero coupon or step bond; the interest rate shown is
the effective yield at the time of purchase by the Fund.
++Non-income producing security.
++++Restricted securities as to resale. The value of the Fund's
investment in restricted securities was approximately $4,379,000,
representing 2.2% of net assets.
<CAPTION>
Acquisition Value
Issue Date Cost (Note 1a)
<S> <S> <C> <C>
Benpres Holdings Corp. (GDR) 10/27/1994 $ 2,159,018 $ 1,616,265
Larsen & Toubro Ltd. (GDR) 3/01/1996 2,924,175 2,762,250
Total $ 5,083,193 $ 4,378,515
=========== ===========
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
As of November 30, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$180,922,359) (Note 1a) $210,394,073
Receivables:
Securities sold $ 1,419,042
Dividends 136,806
Interest 119,591
Capital shares sold 14,716 1,690,155
------------
Deferred organization expenses (Note 1f) 23,251
Prepaid registration fees and other assets (Note 1f) 21,155
------------
Total assets 212,128,634
------------
<PAGE>
Liabilities: Payables:
Securities purchased 11,438,968
Capital shares redeemed 1,034,895
Investment adviser (Note 2) 156,930
Distributor (Note 2) 3,862 12,634,655
------------
Accrued expenses and other liabilities 390,163
------------
Total liabilities 13,024,818
------------
Net Assets: Net assets $199,103,816
============
Net Assets Class A Common Stock, $0.10 par value, 100,000,000 shares authorized $ 1,241,081
Consist of: Class B Common Stock, $0.10 par value, 150,000,000 shares authorized 23,952
Class C Common Stock, $0.10 par value, 50,000,000 shares authorized 5,717
Class D Common Stock, $0.10 par value, 100,000,000 shares authorized 6,114
Paid-in capital in excess of par 168,935,630
Undistributed investment income--net 528,007
Accumulated realized capital losses on investments and foreign
currency transactions--net (Note 6) (1,115,006)
Unrealized appreciation on investments and foreign currency
transactions--net 29,478,321
------------
Net assets $199,103,816
============
Net Asset Class A--Based on net assets of $193,544,714 and 12,410,814
Value: shares outstanding $ 15.59
============
Class B--Based on net assets of $3,719,464 and 239,521
shares outstanding $ 15.53
============
Class C--Based on net assets of $887,137 and 57,169
shares outstanding $ 15.52
============
Class D--Based on net assets of $952,501 and 61,140
shares outstanding $ 15.58
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended November 30, 1996
<S> <C> <C> <C>
Investment Income Dividends (net of $298,838 foreign withholding tax) $ 2,521,930
(Notes 1d & 1e): Interest and discount earned (net of $257 foreign withholding tax) 1,947,928
------------
Total income 4,469,858
------------
<PAGE>
Expenses: Investment advisory fees (Note 2) 2,800,027
Custodian fees 438,910
Transfer agent fees--Class A (Note 2) 222,157
Registration fees (Note 1f) 92,524
Printing and shareholder reports 75,550
Accounting services (Note 2) 65,766
Professional fees 58,525
Directors' fees and expenses 33,562
Account maintenance and distribution fees--Class B (Note 2) 12,392
Amortization of organization expenses (Note 1f) 10,731
Pricing fees 7,530
Account maintenance and distribution fees--Class C (Note 2) 3,088
Transfer agent fees--Class B (Note 2) 2,455
Transfer agent fees--Class C (Note 2) 663
Account maintenance fees--Class D (Note 2) 493
Transfer agent fees--Class D (Note 2) 273
Other 19,829
------------
Total expenses 3,844,475
------------
Investment income--net 625,383
------------
Realized & Realized gain (loss) from:
Unrealized Investments--net $ 13,187,987
Gain (Loss) on Foreign currency transactions--net (213,007) 12,974,980
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 32,163,396
(Notes 1b, 1c, Foreign currency transactions--net 1,175 32,164,571
1e & 3): ------------ ------------
Net realized and unrealized gain on investments
and foreign currency transactions 45,139,551
------------
Net Increase in Net Assets Resulting from Operations $ 45,764,934
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended November 30,
Increase (Decrease) in Net Assets: 1996 1995
<S> <C> <C> <C>
Operations: Investment income--net $ 625,383 $ 741,919
Realized gain (loss) on investments and foreign currency
transactions--net 12,974,980 (14,284,572)
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 32,164,571 (6,776,045)
------------ ------------
Net increase (decrease) in net assets resulting from operations 45,764,934 (20,318,698)
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distributions to Class A (248,019) (2,727,906)
Shareholders Class B -- --
(Note 1g): Class C -- --
Class D -- --
Realized gain on investments--net:
Class A -- (536,928)
Class B -- --
Class C -- --
Class D -- --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (248,019) (3,264,834)
------------ ------------
Capital Share Offering and underwriting costs resulting from the
Transactions issuance of Common Stock -- (96)
(Notes 1f & 4): Net decrease in net assets from capital share transactions (141,243,207) --
------------ ------------
Net decrease in net assets derived from capital
share transactions (141,243,207) (96)
------------ ------------
Net Assets: Total decrease in net assets (95,726,292) (23,583,628)
Beginning of year 294,830,108 318,413,736
------------ ------------
End of year* $199,103,816 $294,830,108
============ ============
<FN>
*Undistributed investment income--net (Note 1h) $ 528,007 $ 234,058
============ ============
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
For the Period
The following per share data and ratios have been derived March 4,
from information provided in the financial statements. For the Year Ended 1994++ to
November 30, November 30,
Increase (Decrease) in Net Asset Value: 1996 1995 1994
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.40 $ 14.47 $ 14.18
Operating ------------ ------------ ------------
Performance: Investment income--net .05 .03 .12
Realized and unrealized gain (loss) on
investments and foreign currency transactions--net 2.15 (.96) .19
------------ ------------ ------------
<PAGE>
Total from investment operations 2.20 (.93) .31
------------ ------------ ------------
Less dividends and distributions:
Investment income--net (.01) (.12) --
Realized gain on investments--net -- (.02) --
------------ ------------ ------------
Total dividends and distributions (.01) (.14) --
------------ ------------ ------------
Capital charge resulting from issuance of
Common Stock -- --++++ (.02)
------------ ------------ ------------
Net asset value, end of period $ 15.59 $ 13.40 $ 14.47
============ ============ ============
Total Investment Based on net asset value per share 16.43% (6.23%) 2.05%+++
Return:** ============ ============ ============
Ratios to Average Expenses 1.36% 1.32% 1.32%*
Net Assets: ============ ============ ============
Investment income--net .23% .24% 1.12%*
============ ============ ============
Supplemental Net assets, end of period (in thousands) $ 193,545 $ 294,830 $ 318,414
Data: ============ ============ ============
Portfolio turnover 44.09% 18.84% 9.10%
============ ============ ============
Average commission rate paid++++++ $ .0086 -- --
============ ============ ============
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Period June 10, 1996++ to
November 30, 1996
Increase (Decrease) in Net Asset Value: Class B Class C Class D
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.53 $ 15.53 $ 15.53
Operating ------------ ------------ ------------
Performance: Investment loss--net (.05) (.05) (.01)
Realized and unrealized gain on investments and
foreign currency transactions--net .05 .04 .06
------------ ------------ ------------
Total from investment operations -- (.01) .05
------------ ------------ ------------
Net asset value, end of period $ 15.53 $ 15.52 $ 15.58
============ ============ ============
Total Investment Based on net asset value per share .00%+++ (.06%)+++ .32%+++
Return:** ============ ============ ============
<PAGE>
Ratios to Average Expenses 2.67%* 2.68%* 1.88%*
Net Assets: ============ ============ ============
Investment loss--net (.99%)* (.98%)* (.34%)*
============ ============ ============
Supplemental Net assets, end of period (in thousands) $ 3,719 $ 887 $ 953
Data: ============ ============ ============
Portfolio turnover 44.09% 44.09% 44.09%
============ ============ ============
Average commission rate paid++++++ $ .0086 $ .0086 $ .0086
============ ============ ============
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
++++Amount is less than $0.01 per share.
++++++For fiscal years beginning on or after September 1, 1995, the
Fund is required to disclose its average commission rate per share
for purchases and sales of equity securities. The "Average
Commission Rate Paid" includes commissions paid in foreign
currencies, which have been converted into US dollars using the
prevailing exchange rate on the date of the transaction. Such
conversions may significantly affect the rate shown.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Emerging Tigers Fund, Inc. (the "Fund"), formerly
Emerging Tigers Fund, Inc., is registered under the Investment
Company Act of 1940 as a non-diversified, open-end management
investment company. Effective June 10, 1996, as a result of the
approval of its shareholders, the Fund converted to an open-end
management investment company. The Fund offers four classes of
shares under the Merrill Lynch Select Pricing SM System. Shares of
Class A and Class D are sold with a front-end sales charge. Shares
of Class B and Class C may be subject to a contingent deferred sales
charge. All classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions,
except that Class B, Class C and Class D Shares bear certain
expenses related to the account maintenance of such shares, and
Class B and Class C Shares also bear certain expenses related to the
distribution of such shares. Each class has exclusive voting rights
with respect to matters relating to its account maintenance and
distribution expenditures. The following is a summary of significant
accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of Directors as
the primary market. Securities which are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written are valued
at the last sale price in the case of exchange-traded options or, in
the case of options traded in the over-the-counter market, the last
asked price. Options purchased are valued at the last sale price in
the case of exchange-traded options or, in the case of options
traded in the over-the-counter market, the last bid price. Short-
term securities are valued at amortized cost, which approximates
market value. Other investments, including futures contracts and
related options, are stated at market value. Securities and assets
for which market value quotations are not available are valued at
their fair value as determined in good faith by or under the
direction of the Fund's Board of Directors.
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(c) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the equity, debt and currency
markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Options--The Fund is authorized to write and purchase call and put
options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
<PAGE>
Written and purchased options are non-income producing investments.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on
operations is recorded from the date the Fund enters into such
contracts. Premium or discount is amortized over the life of the
contracts.
* Foreign currency options and futures--The Fund is also authorized
to purchase or sell listed or over-the-counter foreign currency
options, foreign currency futures and related options on foreign
currency futures as a short or long hedge against possible
variations in foreign exchange rates. Such transactions may be
effected with respect to hedges on non-US dollar denominated
securities owned by the Fund, sold by the Fund but not yet
delivered, or committed or anticipated to be purchased by the Fund.
* Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures contracts
are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits and maintains as collateral such initial
margin as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required. Under the applicable foreign tax law, a
withholding tax may be imposed on interest, dividends, and capital
gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Dividend income is recorded on the ex-
dividend dates. Dividends from foreign securities where the ex-
dividend date may have already passed are subsequently recorded when
the Fund has determined the ex-dividend date. Interest income
(including amortization of discount) is recognized on the accrual
basis. Realized gains and losses on security transactions are
determined on the identified cost basis.
<PAGE>
(f) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period beginning with the commencement
of operations. Direct expenses relating to the public offering of
the Common Stock were charged to capital at the time of issuance.
Prepaid registration fees are charged to expense as the related
shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates.
(h) Reclassification--Generally accepted accounting principles
require that certain components of net assets be reclassified to
reflect permanent differences between financial and tax reporting.
Accordingly, current year's permanent book/tax differences of
$83,415 have been reclassified between accumulated net realized
capital losses and undistributed net investment income. These
reclassifications have no effect on net assets or net asset values
per share.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at the annual rate of 1.00% of
the average daily net assets of the Fund.
Pursuant to the distribution plans (the "Distribution Plans")
adopted by the Fund in accordance with Rule 12b-1 under the
Investment Company Act of 1940, the Fund pays the Distributor
ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares as follows:
Account
Maintenance Distribution
Fee Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
<PAGE>
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
NOTES TO FINANCIAL STATEMENTS (concluded)
For the year ended November 30, 1996, MLFD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Fund's Class A and Class D Shares as
follows:
MLFD MLPF&S
Class A $2,643 $12,887
Class D $1,470 $ 6,871
For the year ended November 30, 1996, MLPF&S received contingent
deferred sales charges of $2,389 and $84 relating to transactions in
Class B and Class C Shares, respectively.
In addition, MLPF&S received $35,356 in commissions on the execution
of portfolio security transactions for the Fund for the year ended
November 30, 1996.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended November 30, 1996 were $111,581,891 and
$233,333,351, respectively.
<PAGE>
Net realized and unrealized gains (losses) as of November 30, 1996
were as follows:
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $13,190,458 $29,471,714
Short-term investments (2,471) --
Foreign currency transactions (213,007) 6,607
----------- -----------
Total $12,974,980 $29,478,321
=========== ===========
As of November 30, 1996, net unrealized appreciation for Federal
income tax purposes aggregated $29,471,714, of which $39,072,650
related to appreciated securities and $9,600,936 related to
depreciated securities. At November 30, 1996, the aggregate cost of
investments for Federal income tax purposes was $180,922,359.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $141,243,207 for the year ended November 30, 1996. During the
year ended November 30, 1995, shares issued and outstanding remained
constant at 22,007,055.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended November 30, 1996 Shares Amount
Shares sold 376,008 $ 5,726,244
Shares redeemed (9,972,249) (152,370,175)
------------- -------------
Net decrease (9,596,241) $(146,643,931)
============= =============
Class B Shares for the Period
June 10, 1996++ to Dollar
November 30, 1996 Shares Amount
Shares sold 294,088 $ 4,450,564
Shares redeemed (52,601) (796,992)
Automatic conversion of shares (1,966) (29,132)
----------- -----------
Net increase 239,521 $ 3,624,440
=========== ===========
<PAGE>
[FN]
++Commencement of Operations.
Class C Shares for the Period
June 10, 1996++ to Dollar
November 30, 1996 Shares Amount
Shares sold 61,472 $ 937,156
Shares redeemed (4,303) (64,508)
----------- -----------
Net increase 57,169 $ 872,648
=========== ===========
[FN]
++Commencement of Operations.
Class D Shares for the Period
June 10, 1996++ to Dollar
November 30, 1996 Shares Amount
Shares sold 119,709 $ 1,774,038
Automatic conversion of shares 1,964 29,132
----------- -----------
Total issued 121,673 1,803,170
Shares redeemed (60,533) (899,534)
----------- -----------
Net increase 61,140 $ 903,636
=========== ===========
[FN]
++Commencement of Operations.
5. Commitments:
At November 30, 1996, the Fund had entered into foreign exchange
contracts under which it agreed to purchase and sell various foreign
currency with approximate values of $11,435,000 and $1,398,000,
respectively.
6. Capital Loss Carryforward:
At November 30, 1996, the Fund had a net capital loss carry-forward
of approximately $1,115,000, all of which expires in 2003. This
amount will be available to offset like amounts of any future
taxable gains.
<PAGE>
7. Subsequent Event:
On December 1, 1996, the Fund's Board of Directors declared an
ordinary income dividend in the amount of $.046195 per Class A Share
and $.030288 per Class D Share, payable on December 30, 1996 to
shareholders of record as of December 19, 1996.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Emerging Tigers Fund, Inc.
(formerly Emerging Tigers Fund, Inc.):
We have audited the accompanying statement of assets and lia-
bilities, including the schedule of investments, of Merrill Lynch
Emerging Tigers Fund, Inc. as of November 30, 1996, the related
statements of operations for the year then ended and changes in net
assets for each of the years in the two-year period then ended and
the financial highlights for each of the years in the two-year
period then ended and the period March 4, 1994 (commencement of
operations) to November 30, 1994. These financial statements and the
financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at November
30, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Emerging Tigers Fund, Inc. as of November 30, 1996,
the results of its operations, the changes in its net assets, and
the financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
January 9, 1997
</AUDIT-REPORT>
<PAGE>
<TABLE>
IMPORTANT TAX INFORMATION (unaudited)
<CAPTION>
The following information summarizes all per share distributions
paid by Merrill Lynch Emerging Tigers Fund, Inc. during its taxable
year ended November 30, 1996:
Interest Domestic Foreign Total Foreign Taxes
Record Payable From Federal Non-Qualifying Source Ordinary Paid or
Date Date Obligations Ordinary Income Income Income Withheld
<S> <S> <S> <C> <C> <C> <C> <C>
Class A Shares 12/29/95 1/12/96 $.000236 $.004775 $.006259 $.011270 $.036067
</TABLE>
The foreign taxes paid or withheld represent taxes incurred by the
Fund on dividends received by the Fund from foreign sources. Foreign
taxes paid or withheld should be included as foreign source income
with an offsetting deduction from gross income or as a credit for
taxes paid to foreign governments. You should consult your tax
adviser regarding the appropriate treatment of foreign taxes paid.
The law varies in each state as to whether and what percentage of
dividend income attributable to Federal obligations is exempt from
state income tax. We recommend that you consult your tax adviser to
determine if any portion of the dividends you received is exempt
from state income tax.
Please retain this information for your records.
PORTFOLIO INFORMATION (unaudited)
As of November 30, 1996
Percent of
Ten Largest Equity Holdings Net Assets
Berjaya Sports TOTO BHD 4.7%
Public Bank BHD 'Foreign' 3.7
United Overseas Bank Ltd. 3.6
Singapore Press Holdings Ltd. 3.2
Arab-Malaysian Merchant Bank BHD 3.2
Renong BHD 3.0
Development Bank of Singapore Ltd. 3.0
DBS Land Ltd. 2.9
P.T. Hanjaya Mandala Sampoerna 2.9
O.Y.L. Industries BHD 2.7
<PAGE>
EQUITY PORTFOLIO CHANGES (unaudited)
For the Quarter Ended November 30, 1996
Additions
Amway (Malaysia) Holdings BHD
China Resources Enterprise Ltd.
Housing Development Finance
Corporation Ltd.
IFB Industries Ltd.
Malaysian Resources Corp. BHD
New World Infrastructure Ltd.
P.T. Davomas Abadi 'Foreign'
Shanghai Industrial Holdings Ltd.
Star Publications (Malaysia) BHD
Tenaga Nasional BHD
Timah Langat BHD
Tingyi (Cayman Islands) Holding Co.
Uniwide Holdings, Inc.
Deletions
Affin Holdings BHD
Dr. Reddy's Labs (GDR)
Genting BHD
O.Y.L. Industries BHD 'A' (New)
Siam City Bank Ltd.
Telekom Malaysia BHD
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Kara W.Y. Tan Bhala, Vice President and
Portfolio Manager
Gerald M. Richard, Treasurer
James W. Harshaw, Secretary
<PAGE>
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
