MERRILL LYNCH
EMERGING TIGERS
FUND, INC.
FUND LOGO
Quarterly Report
February 28, 1997
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.
<PAGE>
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
MERRILL LYNCH EMERGING TIGERS FUND, INC.
Asset Allocation
As a Percentage* of
Net Assets as of
February 28, 1997
A map illustrating the following percentages:
<PAGE>
India 3.2%
Indonesia 11.1%
Malaysia 40.8%
Thailand 3.5%
Singapore 15.7%
China 8.5%
Indochina 0.8%
Philippines 14.5%
[FN]
*Total may not equal 100%.
DEAR SHAREHOLDER
For the three-month period ended February 28, 1997, Merrill Lynch
Emerging Tigers Fund, Inc.'s Class A, Class B, Class C and Class D
Shares had total returns of +7.06%, +6.76%, +6.70% and +6.95%,
respectively, compared to a +5.73% return for the unmanaged
Southeast Asia Emerging Markets Index. (Fund results shown do not
reflect sales charges, and would be lower if sales charges were
included. Complete performance information, including average annual
and aggregate total returns, can be found on pages 4--6 of this
report to shareholders.)
Portfolio Matters
In Malaysia, the current account deficit continues to decline
because of decreasing imports and the weakness of the yen (Malaysia
is a large importer of Japanese capital equipment and components).
Malaysia even posted a small current account surplus in January.
However, we do not expect this trend to continue. The Malaysian
government has been delaying the imports of large items, such as
airplanes, in order to bring the current account deficit down.
Eventually, the government will have to make these purchases. The
business cycle in Malaysia has been extended despite increases in
interest rates. Money supply growth is still strong because of rapid
growth in lending and large amounts of spending by the government.
We believe that the stock market will be supported for the
intermediate term by large flows of liquidity, primarily from local
investors but also from foreign investors. The stock market is now
fairly valued on a historical basis. Earnings growth is quite
respectable and is forecast to be 15% for 1997. For these reasons,
the Fund increased its exposure to Malaysia during the February
quarter, although it is still underweighted relative to the
Southeast Asia Emerging Markets Index. During the quarter, we
increased exposure to infrastructure-related companies such as
United Engineers (Malaysia) Ltd. and Renong BHD. These companies
will benefit from the government expenditure on infrastructure. The
Fund also has a large exposure to the consumer sector, which is
currently booming in Malaysia.
<PAGE>
In Singapore, the economy appears to be recovering after last year's
slowdown caused by the decline in electronic exports. We expect the
recovery to be slow because the global electronics cycle is forecast
to pick up only in the middle of this year. Further positive news is
that the property sector has not had a severe correction as many
investors expected. Prices have only declined marginally because of
government efforts to contain speculation. Share prices of property
developers have significantly outperformed the Indonesian stock
market. Accordingly, our holdings in City Developments Ltd. and DBS
Land Ltd., two major property development companies, have performed
very well in the last few months.
During the February quarter, we established a position in the elec-
tronics company Elec & Eltek International Company Ltd. We expect
the company to benefit from the pick up in the electronics cycle
and, as a result, produce strong earnings.
Although there are positive trends underway in Singapore, the Fund
is currently underweighted there. With less-attractive corporate
earnings growth and share price valuations relative to other
emerging tiger stock markets, we believe that Singapore will
underperform in 1997.
The Philippine stock market is likely to be supported by strong
corporate earnings growth in 1997. In addition, a declining
inflation rate and an increasing money supply should lead to
interest rate cuts this year. There is a small concern about the
current account deficit, but we believe that the deficit is well
funded by direct foreign investment which is flowing into the
country in large amounts. The Philippine economy is still at the
early stages of its economic development and, in our view, is
capable of a sustained high rate of growth for the next few years.
Therefore, the Fund has a very overweighted position in the
Philippines.
Our Philippine investments are heavily weighted in infrastructure-
related and consumer stocks. The country needs a vast amount of
infrastructure in order to support the rate of economic growth and
investment into manufacturing. The rapid rate of economic growth has
increased gross domestic product (GDP) per capita, and therefore has
also increased the amount of disposable income for consumers.
Therefore, we believe that consumer companies should profit from
this trend.
<PAGE>
The Indonesian economy is on the road to a strong recovery in 1997.
With the tight monetary policy pursued by the central bank over the
past year, the rate of inflation has been declining steadily. It
appears that the central bank now has the ability to lower interest
rates in the coming year. Liquidity in the system has increased
significantly, and both local and foreign sentiment has turned
increasingly bullish.
Corporate earnings growth is likely to be in the 20%--25% range and
the valuation for the stock market is quite reasonable at 16 times
estimated 1997 earnings. This valuation compares favorably with the
other Asian tiger stock markets, as well as to the US stock market.
Accordingly, the Fund has increased its already overweighted
position in Indonesia.
The Fund has a large exposure to P.T. Bank International Indonesia.
With wide interest rate spreads and increasing loan growth, we
expect this bank to be very profitable this year. In addition, Bank
International Indonesia is one of the largest, well-capitalized
banks in the country.
In The People's Republic of China, the economy continues to recover
at a slow but steady rate. Exports are showing a strong pick up.
Bank credit is increasing, as is consumer spending growth. The Hong
Kong, Shenzhen and Shanghai stock markets all reacted well to the
death of Deng Xiao Ping. Political stability appears to be
continuing in China with Jiang Zemin still ostensibly in control.
The current meeting of the National People's Congress is stressing
the importance of continuing economic reform. We do not expect
changes in political leadership to take place immediately, but we
will have to watch unfolding events carefully in the next few
months. However, we believe that it is likely that the current
government will be maintained. Good economic and corporate
fundamentals support our overweighted position in China.
Over the past two months, a pick up in liquidity and improving
investor sentiment have driven up the Indian stock market over the
past two months. Investors expect economic recovery as interest
rates decline. In addition, a new budget proposal was recently
announced which included provisions for lower corporate and personal
income taxes as well as an increase in permitted foreign holdings in
Indian companies from 24% to 30%. The proposed budget still has to
be passed in Parliament, which is doubtful because the government is
made up of a fragile coalition and there is no support from many of
the opposition parties.
Over the longer term, India still faces many structural problems. It
has to dismantle a system of government subsidies, lower import
tariffs further, and open its economy to greater competition.
Furthermore, the large budget deficit (8% of GDP) is crowding out
private investment and will keep long-term interest rates high.
Therefore, we continue to underweight the Indian stock market.
<PAGE>
We remain underweighted in Thailand. The Thai economy is undergoing
a slowdown, which we do not expect to end soon. The government
appears unable to stimulate the economy through lowering interest
rates, since doing so would result in an outflow of funds and
thereby destabilize the baht peg. Therefore, Thai interest rates
remain high in order to support the baht, which is being threatened
with devaluation by speculators. High interest rates have caused
difficulties for the property sector, which is already suffering
from a heavy oversupply of residential as well as commercial real
estate. The interest rate environment has also eroded bank earnings.
We do not expect the Thai economy to improve until there is a pick
up in exports and manufacturing. Domestic demand is unlikely to
recover because of the high interest rates. Corporate earnings are
likely to be poor in the first half of 1997, which will keep stock
prices depressed.
In Conclusion
We are very positive on almost all of the emerging tiger countries.
Many of them are now experiencing a recovery in their business
cycles, which will lead to higher corporate earnings growth.
Moreover, the long-term outlook for some countries such as China,
Indonesia and the Philippines, is especially good, in our opinion,
because they are still in the early stages of economic development.
Furthermore, compared to the US stock market, valuations for many of
the emerging tiger stock markets are currently very attractive.
We thank you for your investment in Merrill Lynch Emerging Tigers
Fund, Inc., and we look forward to reviewing our outlook and
strategy with you again in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Kara Tan Bhala)
Kara Tan Bhala
Vice President and Portfolio Manager
March 19, 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.)
* 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.
<PAGE>
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
2/28/97 11/30/96 2/29/96++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
Class A Shares++++ $16.64 $15.59 $15.40 +8.05% +6.74%
Class B Shares 16.58 15.53 15.53 +6.76 +6.76
Class C Shares 16.56 15.52 15.53 +6.63 +6.70
Class D Shares 16.63 15.58 15.53 +7.08 +6.74
Class A Shares++++--Total Return +8.38(1) +7.06(1)
Class B Shares--Total Return +6.76 +6.76
Class C Shares--Total Return +6.63 +6.70
Class D Shares--Total Return +7.29(2) +6.95(2)
<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 $0.046 per share ordinary
income distributions.
(2)Percent change includes reinvestment of $0.030 per share ordinary
income distributions.
</TABLE>
Average Annual
Total Return++
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/96 +12.40% +6.50%
Inception (3/04/94) through 12/31/96 + 4.48 +2.50
[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.
<PAGE>
Aggregate
Total Return
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Inception (6/10/96) through 12/31/96 +1.48% -2.52%
[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 12/31/96 +1.35% +0.35%
[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 12/31/96 +1.81% -3.54%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<PAGE>
<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
1996 14.09 15.79 -- 0.057 +12.40
1/1/97--2/28/97 15.79 16.64 -- -- + 5.38
------
Total $0.205
Cumulative total return as of 2/28/97: +19.27%**
<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/ Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
China Conglomerates 4,702,000 Guangdong Investments, Ltd. (a) $ 3,258,754 $ 4,584,681 2.3%
235,100 Guangdong Tannery Ltd. 31,636 77,423 0.0
800,000 Shanghai Industrial Holdings Ltd. 2,028,044 3,430,106 1.7
------------ ------------ ------
5,318,434 8,092,210 4.0
Food 8,000,000 Tingyi (Cayman Islands) Holding Co. 2,087,068 1,963,013 1.0
Infrastructure 903,000 New World Infrastructure Ltd. 2,333,319 2,682,224 1.4
Real Estate 1,284,400 China Overseas Land & Investment
Ltd. 646,537 750,583 0.4
1,522,000 China Resources Enterprise Ltd. 1,851,851 3,420,136 1.7
------------ ------------ ------
2,498,388 4,170,719 2.1
Total Long-Term Investments in
China 12,237,209 16,908,166 8.5
<PAGE>
India Consumer Products 456,000 IFB Industries Ltd. 540,796 464,268 0.2
Engineering 161,000 Larsen & Toubro Ltd. (GDR)** 2,566,250 2,270,100 1.2
Financial Services 45,181 Housing Development Finance
Corporation Ltd. 2,812,530 3,591,165 1.8
Total Long-Term Investments in
India 5,919,576 6,325,533 3.2
Indochina Mutual Funds 75,000 Southeast Asia Frontier Fund 397,500 262,500 0.1
141,300 Vietnam Frontier Fund 1,455,390 1,377,675 0.7
Total Long-Term Investments in
Indochina 1,852,890 1,640,175 0.8
Indonesia Banking 3,959,214 P.T. Bank International Indonesia 1,839,448 3,304,853 1.6
351,932 P.T. Bank International Indonesia
(Warrants)(b) 45,227 156,431 0.1
------------ ------------ ------
1,884,675 3,461,284 1.7
Building & 3,592,000 P.T. Citra Marga Nusaphala 2,427,206 3,335,643 1.7
Construction
Food 2,469,000 P.T. Davomas Abadi 'Foreign' 2,154,008 3,374,781 1.7
Insurance 3,374,000 P.T. Lippo Life Insurance 3,795,842 4,294,950 2.2
Telecommunications 56,600 P.T. Telekomunikasi Indonesia
(Persero)(ADR)* 1,178,424 1,945,625 1.0
Tobacco 1,107,500 P.T. Hanjaya Mandala Sampoerna 1,958,010 5,500,522 2.8
Total Long-Term Investments in
Indonesia 13,398,165 21,912,805 11.1
Malaysia Automobiles 389,000 Edaran Otomobil Nasional BHD 3,780,143 3,995,770 2.0
Banking 750,600 Arab-Malaysian Merchant Bank BHD 3,417,531 7,075,142 3.6
3,400,666 Public Bank BHD 'Foreign' 5,475,007 7,945,161 4.0
------------ ------------ ------
8,892,538 15,020,303 7.6
<PAGE>
Building & 1,907,000 I.J.M. Corp. BHD 3,299,946 5,108,379 2.6
Construction
Conglomerates 1,066,000 Malaysian Plantations BHD 2,531,919 2,512,024 1.3
2,745,000 Renong BHD 3,950,363 4,997,946 2.5
US$ 1,185,000 Renong BHD, 2.50% due 1/15/2005 1,387,313 1,422,000 0.7
------------ ------------ ------
7,869,595 8,931,970 4.5
Consumer 340,500 Amway (Malaysia) Holdings BHD 2,073,026 2,263,142 1.2
Products
Forest US$ 2,610,000 Aokam Perdana BHD, 3.50% due
Products 6/13/2004 (Convertible) 1,978,945 2,009,700 1.0
Industrial 508,475 O.Y.L. Industries BHD 2,833,447 4,956,735 2.5
Infrastructure 681,344 United Engineers (Malaysia) Ltd. 4,634,449 6,285,107 3.2
Insurance 576,000 MNI Holdings 3,132,208 3,248,338 1.6
Leisure 1,936,000 Berjaya Sports TOTO BHD 3,413,549 11,229,970 5.7
Publishing 807,000 Star Publications (Malaysia) BHD 2,992,748 3,543,323 1.8
Real Estate 980,000 IOI Properties BHD 3,555,471 3,335,750 1.7
1,140,000 Malaysian Resources Corp. BHD 4,749,895 4,821,752 2.4
------------ ------------ ------
8,305,366 8,157,502 4.1
Telecommuni- US$ 2,090,000 Telekom Malaysia BHD, 4% due
cations 10/03/2004 2,116,224 2,032,525 1.0
Utilities-- 813,000 Tenaga Nasional BHD 3,736,135 3,897,160 2.0
Electric
Total Long-Term Investments in
Malaysia 59,058,319 80,679,924 40.8
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Held/ Percent of
COUNTRY Industries Face Amount Long-Term Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Philippines Banking US$ 3,790,000 Metropolitan Bank & Trust Company,
2.75% due 9/10/2000 $ 4,813,077 $ 5,722,900 2.9%
<PAGE>
Beverages 693,840 San Miguel Corp. 'B' 2,393,916 2,585,411 1.3
Conglomerates 219,900 Benpres Holdings Corp. (GDR)** 2,159,018 1,814,175 0.9
Engineering & 4,317,600 DMCI Holdings Inc. 2,795,089 3,201,262 1.6
Construction
Food & Beverage 3,256,800 Universal Robina Corp. 2,470,844 1,640,783 0.8
International 5,750,850 International Container Terminal
Trade Services, Inc. 3,668,573 3,498,616 1.8
Real Estate US$ 1,315,000 AC International Finance, 1.74%
due 12/08/2000 (c) 1,230,929 1,199,938 0.6
1,182,500 Ayala Land, Inc. 'B' 1,256,677 1,416,302 0.7
------------ ------------ ------
2,487,606 2,616,240 1.3
Retail 7,486,346 SM Prime Holdings, Inc. 1,229,712 2,248,750 1.2
9,670,000 Uniwide Holdings, Inc. 1,792,055 2,426,692 1.2
------------ ------------ ------
3,021,767 4,675,442 2.4
Utilities-- 372,659 Manila Electric Co. (MERALCO) 'B' 2,542,642 2,961,435 1.5
Electric
Total Long-Term Investments in the
Philippines 26,352,532 28,716,264 14.5
Singapore Airlines 432,000 Singapore Airlines Ltd. 'Foreign' 4,204,908 3,818,450 1.9
Banking 397,000 Development Bank of Singapore Ltd. 4,062,639 5,263,627 2.7
446,400 United Overseas Bank Ltd. 3,524,140 5,073,083 2.6
------------ ------------ ------
7,586,779 10,336,710 5.3
Beverages 196,000 Fraser & Neave Ltd. 1,858,848 1,759,944 0.9
Electronics 209,000 Elec & Eltek International
Company Ltd. 990,442 1,032,460 0.5
Industrial 635,000 Clipsal Industries Ltd. 1,767,649 2,603,500 1.3
Publishing & 225,800 Singapore Press Holdings Ltd. 3,333,118 4,403,536 2.2
Broadcasting
Real Estate 350,000 City Developments Ltd. 2,826,650 3,461,943 1.8
936,000 DBS Land Ltd. 2,717,478 3,644,195 1.8
------------ ------------ ------
5,544,128 7,106,138 3.6
<PAGE>
Total Long-Term Investments in
Singapore 25,285,872 31,060,738 15.7
Thailand Banking US$ 1,844,000 Bangkok Bank Public Company Ltd.,
3.25% due 3/03/2004 2,156,115 1,576,620 0.8
159,620 Bangkok Bank Public Company Ltd.
'Foreign' 1,461,931 1,405,692 0.7
53,512 Thai Farmers Bank, Ltd. 'Foreign'
(Warrants)(b) 53,003 33,070 0.0
------------ ------------ ------
3,671,049 3,015,382 1.5
Mutual Funds 2,800,000 Ruam Pattana Fund II 'Foreign' 1,953,894 1,027,424 0.5
Oil--Related 207,500 PTT Exploration and Production
Public Co. 'Foreign' 1,665,594 2,837,196 1.5
Total Long-Term Investments in
Thailand 7,290,537 6,880,002 3.5
Total Long-Term Investments 151,395,100 194,123,607 98.1
Face Amount Short-Term Securities
United Commercial US$ 386,000 General Electric Capital Corp.,
States Paper*** 5.29% due 8/11/1997 376,755 385,575 0.2
3,293,000 General Motors Acceptance Corp.,
5.43% due 3/03/1997 3,292,007 3,292,007 1.7
Total Investments in Short-Term
Securities 3,668,762 3,677,582 1.9
Total Investments $155,063,862 197,801,189 100.0
============
Other Assets Less Liabilities 91,909 0.0
------------ ------
Net Assets $197,893,098 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $191,695,748
and 11,519,388 shares outstanding $ 16.64
============
Class B--Based on net assets of $4,507,089 and
271,892 shares outstanding $ 16.58
============
Class C--Based on net assets of $966,740 and
58,361 shares outstanding $ 16.56
============
Class D--Based on net assets of $723,521 and
43,516 shares outstanding $ 16.63
============
<PAGE>
<FN>
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***Commercial Paper is traded on a discount basis; the interest
rates shown are the discount rates paid at the time of 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.
</TABLE>
EQUITY PORTFOLIO CHANGES
For the Quarter Ended February 28, 1997
Additions
China Overseas Land & Investment Ltd.
Elec & Eltek International Company Ltd.
Guangdong Tannery Ltd.
MNI Holdings
Malaysian Plantations BHD
P.T. Bank International Indonesia (Warrants)
United Engineers (Malaysia) Ltd.
Deletions
<PAGE>
Advanced Info Services PLC
Development Finance Corp.
Finance One Co., Ltd. 'Foreign'
Gujarat Ambuja Cement (GDR)
Industrial Credit & Investment
Corporation of India Ltd. (GDR)
Land & General BHD (Ordinary)
Land & House Public Co. 'Foreign'
Metropolitan Bank & Trust Company
P.T. Modern Photo Film
Resorts World BHD
Tata Engineering Locomotive Co. (GDR)
Timah Langat BHD
Thai Farmers Bank, Ltd. 'Foreign'
PORTFOLIO INFORMATION
As of February 28, 1997
Percent of
Ten Largest Equity Holdings Net Assets
Berjaya Sports TOTO BHD 5.7%
Public Bank BHD 'Foreign' 4.0
Arab-Malaysian Merchant Bank BHD 3.6
United Engineers (Malaysia) Ltd. 3.2
P.T. Hanjaya Mandala Sampoerna 2.8
Development Bank of Singapore Ltd. 2.7
I.J.M. Corp. BHD 2.6
United Overseas Bank Ltd. 2.6
Renong BHD 2.5
O.Y.L. Industries BHD 2.5
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
