MERRILL LYNCH
EMERGING TIGERS
FUND, INC.
FUND LOGO
Semi-Annual Report
May 31, 1999
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
MERRILL LYNCH EMERGING TIGERS FUND, INC.
Map Depicting the Fund's Asset Allocation As a Percentage* of Net
Assets as of May 31, 1999
INDIA 8.7%
INDONESIA 8.2%
MALAYSIA 21.2%
THAILAND 7.9%
SINGAPORE 31.6%
CHINA 8.9%
PHILIPPINES 10.3%
[FN]
*Total may not equal 100%.
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
DEAR SHAREHOLDER
For the three-month period ended May 31, 1999, Class A, Class B,
Class C and Class D Shares of Merrill Lynch Emerging Tigers Fund,
Inc. had total returns of +26.60%, +26.22%, +26.18% and +26.47%,
respectively. (Fund results do not include sales charges, and would
be lower if sales charges were included. Complete performance
information can be found on pages 4 and 5 of this report to
shareholders.)
During the quarter ended May 31, 1999, the emerging tiger countries
continued with the slow work of repair and reconstruction amid signs
that the region's economies are beginning to show positive growth.
These countries continue to run large current account surpluses, and
central banks are using this opportunity to aggressively lower
interest rates. Record-low interest rates and surging equity markets
are providing the foundation for a rise in consumer confidence and
spending. Governments continue to fuel their economies with
increased fiscal spending. This increased domestic liquidity,
combined with positive international portfolio inflows, supported
the emerging tiger stock market rally in the May quarter. In this
positive environment, the Fund was fully invested in equities.
Investment Strategy
In The People's Republic of China, relations with America continued
to be volatile, with much of the goodwill inspired by Zhu Rong Ji's
visit giving way to rival threats of containment and espionage. The
accidental NATO bombing of the Chinese embassy in Belgrade is widely
believed by the average Chinese to have been intentional. The
Chinese government stoked anti-American protests and voiced fears
that the United States is out to arrest China's development.
Fortunately, as is usually the case in Sino-American relations, the
tense political atmosphere has not halted ordinary trade between the
two countries.
We continue to expect that the Chinese economy will remain soft for
the duration of this year, and consumers continue to refuse to
spend. Recent interest rate cuts are designed to stimulate consumer
demand while easing the debt load of the struggling corporate
sector. Although these cuts may spark a short-term equity market
rally, their sustainable effect on the Chinese economy and currency
remains to be seen. If we do not see a marked increase in economic
activity over the next few months, there will be greater domestic
pressure mounted on the currency. We remain underweighted in China,
and we do not expect to increase this exposure in the near term.
Singapore continues to show signs of recovery. Non-oil domestic
exports and imports, along with manufacturing output, continued to
rise. Domestic loan growth also continued to accelerate and retail
sales also surged. There has been renewed interest in the property
sector, with property prices rising and the number of units sold
nearly doubling from levels of one year ago. The government, in its
effort to strengthen the banking system, announced a five-year
liberalization package. The continued focus of Singapore companies
on minority shareholder value is further reflected in the
announcements of share buybacks by portfolio holdings Singapore
Press Holdings Ltd. and Singapore Telecommunications, Ltd.
Our investments in Singapore focus on improving consumer sentiment,
particularly in the property and automobile sectors. We added three
predominantly residential property developers, City Developments
Limited, DBS Land Limited and Allgreen Properties Limited. In the
automobile sector, we chose to invest in Cycle and Carriage Ltd.,
the largest distributor of automobiles in Singapore. We remain
slightly overweight in Singapore, and will seek to increase our
position further as opportunities arise.
Malaysia's credit rating was upgraded during the May quarter, but
even with the removal of capital controls scheduled for September,
the country is not yet reinstated into the Morgan Stanley Capital
International regional stock indexes. There seems to be some pick up
in consumer confidence as reflected in automobile sales and low-end
residential property sales. Industrial production is rising, with
strong gains in manufacturing. Growth in imports in US dollar terms
suggests that producers are restocking for future production.
Restructuring of the banking sector through the asset management
unit Danaharta has been progressing well. We are also seeing the
first signs of an increase in domestic lending. This further
supports our view of a return to positive gross domestic product
(GDP) growth in the second half of the year. As a sign of its desire
to reenter the global financial markets, Malaysia recently completed
the successful issuance of a US$1 billion sovereign bond.
During the May quarter, we restructured our Malaysian investments
somewhat less defensively. We believe that these investments will
prove to be more profitable as investors gradually return to the
Malaysian stock market. Although we increased investments somewhat
during the May quarter, we remain underweight in Malaysia.
The Thai economy appears to have bottomed out and is experiencing a
moderate recovery from an upturn in domestic demand. Vehicle and
department store sales are up. Exports and imports are also higher,
with the growth in imports suggesting improvement in the
manufacturing sector. Non-performing loans in the banking system
appear to have peaked and are now heading lower. Sufficient progress
has been made in the restructuring and recapitalization of the
banking system. Our weighting in Thailand remains neutral.
In Indonesia, most investors are awaiting the results of the
elections that took place in June. The likely outcome will be a
coalition government, since there is no single party expected to
gain a parliamentary majority. If a coalition government is the
result, it will be more difficult to arrive at a consensus in terms
of government policy toward the economy. Meanwhile, bank
reconstruction is making some progress as the government has moved
to close down seven banks and recapitalize several others. With
confidence returning to Indonesia, there have been steady cash
inflows from investors with a strengthening of the currency. These
developments alleviated the burdens of many private companies and
allowed domestic interest rates to fall further. Hence, consumer
spending has recovered substantially, especially in the food and
tobacco sectors.
In light of the improving political and economic climate, we have
increased our investments in Indonesia. Specifically, we have added
to the consumer sector with the purchase of PT Indofood Sukses
Makmur Tbk (world's largest maker of instant noodles) and PT Hanjaya
Mandala Sampoerna Tbk (Indonesia's third-largest clove cigarette
manufacturer). We believe that both are well positioned to benefit
from an increase in domestic demand. We also purchased shares of PT
Astra International Tbk (manufacturer of local automobiles) in
anticipation of a major debt restructuring and an effort to divest
its non-core businesses. Most recently, we purchased shares of PT
Bank Internasional Indonesia in anticipation of a recovery in the
banking system. However, our exposure to Indonesia remains market-
neutral, pending results of the general election.
Thanks to the bumper harvest of rice and corn, agricultural output
in the Philippines has outpaced forecasts and has fueled the
recovery of private consumption. Domestic interest rates continued
to fall, while the consolidation trends within the banking and
telecommunication sectors are emerging rapidly, which will be a
powerful driver of returns for major companies. In the May quarter,
we added San Miguel Corporation and Philippine Long Distance
Telephone Company for upside potential from restructuring of
underlying businesses. Both companies stand to benefit significantly
from further consolidation in their sectors. Although the overall
positive trends in the country remain, equity valuations now appear
demanding. We have begun reducing our overweight position in the
country and may continue to do so if valuations stage a further
expansion.
In Conclusion
The rise in share prices experienced by the emerging tiger stock
markets thus far this year is encouraging. As 1999 continues, we are
monitoring several key variables. First, there is the extent of
Japan's fledgling economic recovery and the potential demand for
imports it will create. Second, the direction and severity of any
changes in US interest rates will be important to the emerging tiger
economies. Third, the level of continued commitment to structural
reform exhibited by individual companies will need to increase to
further restore investor confidence. Finally, we are also closely
monitoring the ability of the Asian tiger economies to cope with the
challenges presented by the advent of the year 2000.
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 upcoming quarterly report to
shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Kara Tan Bhala)
Kara Tan Bhala
Senior Vice President and
Portfolio Manager
July 8, 1999
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
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. Figures shown in the "Recent Performance
Results" and "Average Annual Total Return" tables assume
reinvestment of all dividends and capital gains distributions at net
asset value on the ex-dividend date. 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 Since Inception
Total Return Total Return Total Return
<S> <C> <C> <C>
ML Emerging Tigers Fund, Inc. Class A Shares +8.16% +26.60% -45.88%++
ML Emerging Tigers Fund, Inc. Class B Shares +6.93 +26.22 -52.70
ML Emerging Tigers Fund, Inc. Class C Shares +6.99 +26.18 -52.74
ML Emerging Tigers Fund, Inc. Class D Shares +7.74 +26.47 -51.62
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included. Total
investment returns are based on changes in net asset values for the
periods shown, and assume reinvestment of all dividends and capital
gains distributions at net asset value on the ex-dividend date. The
Fund's since inception periods are Class A Shares, from 3/04/94 to
5/31/99 and Class B, Class C and Class D Shares, from 6/10/96 to
5/31/99.
++Performance results for Class A Shares prior to June 10, 1996 are
for the period when the Fund was closed-end.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/99 -25.69% -29.59%
Five Years Ended 3/31/99 -14.87 -15.79
Inception (3/04/94) through 3/31/99 -14.85 -15.75
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/99 -26.44% -27.16%
Inception (6/10/96) through 3/31/99 -28.71 -28.71
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/99 -26.36% -29.26%
Inception (6/10/96) through 3/31/99 -28.65 -29.15
[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 Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 3/31/99 -25.83% -29.72%
Inception (6/10/96) through 3/31/99 -28.14 -29.50
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
China Appliances 567,000 Guangdong Kelon Electrical Holdings
Company Limited 'H' $ 579,226 $ 435,085 1.0%
Electronics 800,000 Legend Holdings Limited 396,363 546,815 1.3
Infrastructure 1,029,000 Cosco Pacific Limited 675,066 607,129 1.4
225,000 ++New World Infrastructure Limited 445,389 361,265 0.8
------------ ------------ ------
1,120,455 968,394 2.2
Mining 1,994,000 Yanzhou Coal Mining Co. Ltd. 'H' 551,276 498,886 1.2
Telecommunications 656,500 China Telecom (Hong Kong) Limited 1,112,704 1,380,055 3.2
Total Long-Term Investments in China 3,760,024 3,829,235 8.9
India Banking 25,351 Housing Development Finance Corporation
& Financial Ltd. (HDFC) 1,578,107 1,239,461 2.9
44,940 State Bank of India (GDR)** 694,152 476,364 1.1
------------ ------------ ------
2,272,259 1,715,825 4.0
Computer Software 10,000 NIIT Limited 401,040 423,373 1.0
Oil Services 60,900 Hindustan Petroleum Corporation Ltd. 659,510 313,946 0.7
Pharmaceuticals 63,800 Ranbaxy Laboratories Limited 584,702 888,468 2.1
Telecommunications 47,240 Mahanagar Telephone Nigam Ltd. (GDR)** 564,896 413,350 0.9
Total Long-Term Investments in India 4,482,407 3,754,962 8.7
Indonesia Banking 13,351,500 PT Bank Internasional Indonesia
'Foreign' 444,421 370,875 0.9
Conglomerates 1,367,000 PT Astra International Tbk 452,756 421,914 1.0
Foods 675,000 PT Indofood Sukses Makmur Tbk 422,289 670,833 1.5
Telecommunications 75,000 PT Telekomunikasi Indonesia (ADR)* 666,315 698,438 1.6
Tobacco 380,000 PT Gudang Garam Tbk 556,934 736,543 1.7
400,000 PT Hanjaya Mandala Sampoerna Tbk 442,394 646,914 1.5
------------ ------------ ------
999,328 1,383,457 3.2
Total Long-Term Investments in
Indonesia 2,985,109 3,545,517 8.2
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Long-Term Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Malaysia++++ Banking & 1,540,000 Public Bank BHD 'Foreign' $ 865,756 $ 1,564,316 3.6%
Financial
Building & 43,000 IJM Corporation BHD 83,169 33,947 0.1
Construction
Consumer 348,500 Amway (Malaysia) Holdings BHD 707,344 715,342 1.6
Products
Leisure 385,000 Genting BHD 862,706 1,367,763 3.2
377,000 Resorts World BHD 683,286 734,158 1.7
------------ ------------ ------
1,545,992 2,101,921 4.9
Publishing & 438,000 Star Publications (Malaysia) 460,607 922,105 2.1
Broadcasting
Restaurants 558,000 KFC Holdings (Malaysia) BHD 688,792 741,553 1.7
Telecommunications 331,000 Telekom Malaysia BHD 942,429 1,132,368 2.6
Tobacco 141,400 Rothmans of Pall Mall (Malaysia) BHD 757,998 1,041,895 2.4
Transportation 529,000 Malaysia International Shipping
Corporation BHD 'Foreign' 969,076 925,750 2.2
Total Long-Term Investments in
Malaysia 7,021,163 9,179,197 21.2
Philippines Banking 35,000 Metropolitan Bank & Trust Company 232,006 339,380 0.8
Beverages 150,000 San Miguel Corporation 'B' 266,543 338,391 0.8
Conglomerates 3,716,200 Benpres Holdings Corp. 1,252,676 882,475 2.0
Real Estate 1,407,550 Ayala Land, Inc. 537,206 454,947 1.1
Restaurants 1,365,000 Jollibee Foods Corporation
(Warrants)(a) 700,869 774,340 1.8
Retail 2,543,346 SM Prime Holdings, Inc. 445,650 556,986 1.3
Telecommunications 17,000 Philippine Long Distance Telephone
Company (ADR)* 451,967 490,875 1.1
Utilities-- 174,956 Manila Electric Company 'B' 983,374 604,729 1.4
Electric & Gas
Total Long-Term Investments in
the Philippines 4,870,291 4,442,123 10.3
Singapore Airlines 223,000 Singapore Airlines Ltd. 'Foreign' 2,112,592 1,991,418 4.6
Automotive 118,000 Cycle & Carriage Ltd. 562,742 656,886 1.5
Banking 147,500 Development Bank of Singapore
Limited 'Foreign' 1,310,595 1,522,470 3.5
149,000 Oversea-Chinese Banking Corporation
Ltd. 'Foreign' 1,032,009 1,166,425 2.7
291,500 Overseas Union Bank Ltd. 'Foreign' 1,127,301 1,495,955 3.5
------------ ------------ ------
3,469,905 4,184,850 9.7
Conglomerates 739,000 Singapore Technologies Engineering Ltd. 637,806 805,636 1.9
Electronics 245,000 Natsteel Electronics Ltd. 448,336 816,903 1.9
Industrial 863,000 Clipsal Industries (Holdings) Limited 2,200,509 923,410 2.1
Publishing & 120,997 Singapore Press Holdings Ltd. 1,555,426 1,655,859 3.8
Broadcasting
Real Estate 180,000 Allgreen Properties Limited 109,232 171,180 0.4
194,000 City Developments Limited 917,822 1,158,713 2.7
219,000 DBS Land Limited 349,590 388,600 0.9
------------ ------------ ------
1,376,644 1,718,493 4.0
Telecommunications 524,000 Singapore Telecommunications, Ltd. 811,640 884,222 2.1
Total Long-Term Investments in
Singapore 13,175,600 13,637,677 31.6
Thailand Banking & 330,000 Siam Commercial Bank (Warrants)(a) 0 115,571 0.3
Financial 330,000 Siam Commercial Bank Public Company
Limited 'Foreign' (Preferred) 232,016 337,823 0.8
238,000 Thai Farmers Bank Public Company
Limited 'Foreign' 310,807 653,987 1.5
------------ ------------ ------
542,823 1,107,381 2.6
Oil--Related 81,517 ++PTT Exploration and Production Public
Company Limited 'Foreign' 802,159 663,204 1.5
Telecommunications 95,600 Advanced Info Service Public Company
Limited 'Foreign' 497,400 1,164,095 2.7
637,000 ++TelecomAsia Corporation Public Company
Limited 'Foreign' 458,622 467,625 1.1
------------ ------------ ------
956,022 1,631,720 3.8
Total Long-Term Investments in
Thailand 2,301,004 3,402,305 7.9
Total Long-Term Investments 38,595,598 41,791,016 96.8
Face
Amount Short-Term Securities
United Commercial US$ 889,000 General Motors Acceptance Corp.,
States Paper*** 4.94% due 6/01/1999 888,634 888,634 2.0
Total Investments in Short-Term
Securities 888,634 888,634 2.0
Total Investments $ 39,484,232 42,679,650 98.8
============
Unrealized Appreciation on Forward Foreign Exchange Contracts--Net**** 14,934 0.0
Other Assets Less Liabilities 495,079 1.2
------------ ------
Net Assets $ 43,189,663 100.0%
============ ======
<FN>
++Non-income producing security.
++++Effective February 16, 1999, the Fund's Board of Directors
adopted a change in valuation for Malaysian securities. The Fund
will utilize a Malaysian exchange rate of 3.80 and record an
estimated exit tax on the value of any investments made before
February 15, 1999, based upon its value as of August 31, 1998,
equivalent to 30% through March 31, 1999, 20% from April 1, 1999
through May 31, 1999 and 10% from June 1, 1999 through August 31,
1999. These changes are due to the capital controls implemented by
the Malaysian government, which froze the Malaysian ringgit at 3.80
until September 1, 1999 and initiated a tax at various rates, as
described above, on any funds repatriated from Malaysia.
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***Commercial Paper is traded on a discount basis; the interest rate
shown reflects the discount rate paid at the time of purchase by the
Fund.
****Forward foreign exchange contracts as of May 31, 1999 were as
follows:
Unrealized
Foreign Expiration Appreciation
Currency Sold Date (Note 1c)
THB 22,837,500 June 1999 $ 14,934
Total Unrealized Appreciation on Forward
Foreign Exchange Contracts--Net
(US$ Commitment--$630,000) $ 14,934
==========
(a)Warrants entitle the Fund to purchase a predetermined number of
shares of common stock and are non-income producing. The purchase
price and number of shares are subject to adjustment under certain
conditions until the expiration date and are non-income producing.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of May 31, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$39,484,232) (Note 1a) $ 42,679,650
Unrealized appreciation on forward foreign exchange contracts (Note 1c) 14,934
Cash 822
Foreign cash (Note 1b) 1,374,783
Receivables:
Securities sold $ 355,144
Dividends 178,251
Capital shares sold 61,025 594,420
------------
Deferred organization expenses (Note 1f) 1,789
Prepaid registration fees and other assets (Note 1f) 12,792
------------
Total assets 44,679,190
------------
Liabilities: Payables:
Securities purchased 641,623
Capital shares redeemed 59,736
Investment adviser (Note 2) 34,827
Distributor (Note 2) 7,234 743,420
------------
Accrued expenses and other liabilities 746,107
------------
Total liabilities 1,489,527
------------
Net Assets: Net assets $ 43,189,663
============
Net Assets Class A Common Stock, $0.10 par value, 100,000,000
Consist of: shares authorized $ 447,564
Class B Common Stock, $0.10 par value, 150,000,000
shares authorized 91,725
Class C Common Stock, $0.10 par value, 50,000,000
shares authorized 28,029
Class D Common Stock, $0.10 par value, 100,000,000
shares authorized 23,891
Paid-in capital in excess of par 93,441,133
Accumulated investment loss--net (713,270)
Accumulated realized capital losses on investments and foreign
currency transactions--net (Note 6) (52,742,323)
Unrealized appreciation on investments and foreign currency
transactions--net 2,612,914
------------
Net assets $ 43,189,663
============
Net Asset Class A--Based on net assets of $32,793,349 and 4,475,643
Value: shares outstanding $ 7.33
============
Class B--Based on net assets of $6,623,174 and 917,252
shares outstanding $ 7.22
============
Class C--Based on net assets of $2,026,685 and 280,290 shares
outstanding $ 7.23
============
Class D--Based on net assets of $1,746,455 and 238,914 shares
outstanding $ 7.31
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended May 31, 1999
<S> <S> <C> <C>
Investment Income Dividends (net of $7,985 foreign withholding tax) $ 315,809
(Notes 1d & 1e): Interest and discount earned 108,036
------------
Total income 423,845
------------
Expenses: Investment advisory fees (Note 2) $ 194,638
Custodian fees 60,392
Transfer agent fees--Class A (Note 2) 54,122
Accounting services (Note 2) 49,015
Printing and shareholder reports 39,081
Professional fees 38,387
Registration fees (Note 1f) 31,783
Account maintenance and distribution fees--Class B (Note 2) 26,814
Directors' fees and expenses 23,668
Transfer agent fees--Class B (Note 2) 10,609
Account maintenance and distribution fees--Class C (Note 2) 9,809
Transfer agent fees--Class C (Note 2) 3,936
Pricing fees 3,123
Transfer agent fees--Class D (Note 2) 2,629
Account maintenance fees--Class D (Note 2) 1,834
Amortization of organization expenses (Note 1f) 922
Other 3,362
------------
Total expenses 554,124
------------
Investment loss--net (130,279)
------------
Realized & Realized gain (loss) from:
Unrealized Investments--net (9,239,448)
Gain (Loss) on Foreign currency transactions--net 52,041 (9,187,407)
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 16,152,243
(Notes 1b, 1c, Foreign currency transactions--net (515,292) 15,636,951
1e & 3): ------------ ------------
Net realized and unrealized gain on investments and foreign
currency transactions 6,449,544
------------
Net Increase in Net Assets Resulting from Operations $ 6,319,265
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
May 31, November 30,
Increase (Decrease) in Net Assets: 1999 1998
<S> <S> <C> <C>
Operations: Investment income (loss)--net $ (130,279) $ 196,777
Realized loss on investments and foreign currency
transactions--net (9,187,407) (24,179,379)
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 15,636,951 9,360,343
------------ ------------
Net increase (decrease) in net assets resulting from
operations 6,319,265 (14,622,259)
------------ ------------
Dividends to Investment income--net:
Shareholders Class A (897,314) --
(Note 1g): Class B (93,657) --
Class C (30,842) --
Class D (38,552) --
In excess of investment income--net:
Class A -- (90,622)
------------ ------------
Net decrease in net assets resulting from dividends to
shareholders (1,060,365) (90,622)
------------ ------------
Capital Share Net decrease in net assets derived from capital share
Transactions transactions (5,244,424) (14,685,494)
(Note 4): ------------ ------------
Net Assets: Total increase (decrease) in net assets 14,476 (29,398,375)
Beginning of period 43,175,187 72,573,562
------------ ------------
End of period* $ 43,189,663 $ 43,175,187
============ ============
<FN>
*Undistributed (accumulated) investment income (loss)--net $ (713,270) $ 477,374
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
For the
The following per share data and ratios Six
have been derived from information provided Months
in the financial statements. Ended For the Year
May 31, Ended November 30,
Increase (Decrease) in Net Asset Value: 1999++ 1998++ 1997++ 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 6.42 $ 8.12 $ 15.59 $ 13.40 $ 14.47
Operating --------- --------- --------- --------- ---------
Performance: Investment income (loss)--net (.02) .04 (.04) .05 .03
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net 1.11 (1.73) (7.38) 2.15 (.96)
--------- --------- --------- --------- ---------
Total from investment operations 1.09 (1.69) (7.42) 2.20 (.93)
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.18) -- (.01) (.01) (.12)
In excess of investment income--net -- (.01) (.04) -- --
Realized gain on investments--net -- -- -- -- (.02)
--------- --------- --------- --------- ---------
Total dividends and distributions (.18) (.01) (.05) (.01) (.14)
--------- --------- --------- --------- ---------
Capital charge resulting from issuance
of Common Stock -- -- -- -- --+++++
--------- --------- --------- --------- ---------
Net asset value, end of period $ 7.33 $ 6.42 $ 8.12 $ 15.59 $ 13.40
========= ========= ========= ========= =========
Total Investment Based on net asset value per share 17.42%+++ (20.81%) (47.76%) 16.43% (6.23%)
Return:** ========= ========= ========= ========= =========
Ratios to Average Expenses 2.64%* 2.17% 1.69% 1.36% 1.32%
Net Assets: ========= ========= ========= ========= =========
Investment income (loss)--net (.48%)* .52% (.27%) .23% .24%
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 32,793 $ 34,111 $ 63,760 $ 193,545 $ 294,830
Data: ========= ========= ========= ========= =========
Portfolio turnover 52.17% 73.52% 35.63% 44.09% 18.84%
========= ========= ========= ========= =========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
+++Aggregate total investment return.
+++++Amount is less than $0.01 per share.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class B
For the For the
The following per share data and ratios have Six Period
been derived from information provided in Months For the June 10,
the financial statements. Ended Year Ended 1996++ to
May 31, November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1999++++ 1998++++ 1997++++ 1996
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 6.29 $ 8.03 $ 15.53 $ 15.53
Operating -------- -------- -------- --------
Performance: Investment loss--net (.04) (.03) (.15) (.05)
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net 1.08 (1.71) (7.35) .05
-------- -------- -------- --------
Total from investment operations 1.04 (1.74) (7.50) --
-------- -------- -------- --------
Less dividends from investment income--net (.11) -- -- --
-------- -------- -------- --------
Net asset value, end of period $ 7.22 $ 6.29 $ 8.03 $ 15.53
======== ======== ======== ========
Total Investment Based on net asset value per share 16.79%+++ (21.67%) (48.29%) .00%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 3.68%* 3.22% 2.75% 2.67%*
Net Assets: ======== ======== ======== ========
Investment loss--net (1.43%)* (.51%) (1.20%) (.99%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 6,623 $ 5,347 $ 4,887 $ 3,719
Data: ======== ======== ======== ========
Portfolio turnover 52.17% 73.52% 35.63% 44.09%
======== ======== ======== ========
<CAPTION>
Class C
For the For the
The following per share data and ratios Six Period
have been derived from information provided Months For the June 10,
in the financial statements. Ended Year Ended 1996++ to
May 31, November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1999++++ 1998++++ 1997++++ 1996
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 6.28 $ 8.02 $ 15.52 $ 15.53
Operating -------- -------- -------- --------
Performance: Investment loss--net (.05) (.03) (.11) (.05)
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net 1.09 (1.71) (7.39) .04
-------- -------- -------- --------
Total from investment operations 1.04 (1.74) (7.50) (.01)
-------- -------- -------- --------
Less dividends from investment income--net (.09) -- -- --
-------- -------- -------- --------
Net asset value, end of period $ 7.23 $ 6.28 $ 8.02 $ 15.52
======== ======== ======== ========
Total Investment Based on net asset value per share 16.88%+++ (21.70%) (48.32%) (.06%)+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 3.69%* 3.22% 2.83% 2.68%*
Net Assets: ======== ======== ======== ========
Investment loss--net (1.51%)* (.52%) (1.01%) (.98%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 2,027 $ 2,139 $ 2,870 $ 887
Data: ======== ======== ======== ========
Portfolio turnover 52.17% 73.52% 35.63% 44.09%
======== ======== ======== ========
<CAPTION>
Class D
For the For the
The following per share data and ratios have Six Period
been derived from information provided in the Months For the June 10,
financial statements. Ended Year Ended 1996++ to
May 31, November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1999++++ 1998++++ 1997++++ 1996
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 6.39 $ 8.10 $ 15.58 $ 15.53
Operating -------- -------- -------- --------
Performance: Investment income (loss)--net (.02) .02 (.04) (.01)
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net 1.10 (1.73) (7.41) .06
-------- -------- -------- --------
Total from investment operations 1.08 (1.71) (7.45) .05
-------- -------- -------- --------
Less dividends:
Investment income--net (.16) -- --+++++ --
In excess of investment income--net -- -- (.03) --
-------- -------- -------- --------
Total dividends (.16) -- (.03) --
-------- -------- -------- --------
Net asset value, end of period $ 7.31 $ 6.39 $ 8.10 $ 15.58
======== ======== ======== ========
Total Investment Based on net asset value per share 17.35%+++ (21.11%) (47.91%) .32%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 2.89%* 2.44% 2.01% 1.88%*
Net Assets: ======== ======== ======== ========
Investment income (loss)--net (.69%)* .28% (.30%) (.34%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 1,747 $ 1,578 $ 1,057 $ 953
Data: ======== ======== ======== ========
Portfolio turnover 52.17% 73.52% 35.63% 44.09%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
+++++Amount is less than $0.01 per share.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Emerging Tigers Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. The Fund's financial statements
are prepared in accordance with generally accepted accounting
principles which may require the use of management accruals and
estimates. These unaudited financial statements reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim period presented. All
such adjustments are of a normal recurring nature. 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.
(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 or
purchased are valued at the last sale price in the case of exchange-
traded options. In the case of options traded in the over-the-
counter market, valuation is the last asked price (options written)
or the last bid price (option purchased). 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).
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.
* 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
financial 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 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.
(f) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a period not exceeding five years beginning with the
commencement of operations. 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. Distributions in
excess of net investment income are due primarily to differing tax
treatments for foreign currency transactions.
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. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or the "Distributor"), a division of Princeton
Funds Distributor, Inc. ("PFD"), which is a wholly-owned subsidiary
of Merrill Lynch Group, Inc.
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 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% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("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.
For the six months ended May 31, 1999, 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 $253 $3,433
Class D $181 $2,674
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1996
NOTES TO FINANCIAL STATEMENTS (concluded)
For the six months ended May 31, 1999, MLPF&S received contingent
deferred sales charges of $9,817 and $1,605 relating to transactions
in Class B and Class C Shares, respectively.
In addition, MLPF&S received $91,274 in commissions on the execution
of portfolio security transactions for the Fund for the six months
ended May 31, 1999.
Financial Data Services, Inc. ("FDS"), 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, PFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended May 31, 1999 were $19,107,646 and
$21,800,208, respectively.
Net realized gains (losses) for the six months ended May 31, 1999
and net unrealized gains (losses) as of May 31, 1999 were as
follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ (9,239,639) $ 3,195,418
Short-term investments 191 --
Forward foreign exchange
contracts 5,511 14,934
Foreign currency transactions 46,530 (597,438)
------------ ------------
Total $ (9,187,407) $ 2,612,914
============ ============
As of May 31, 1999, net unrealized appreciation for Federal income
tax purposes aggregated $3,195,418, of which $7,162,824 related to
appreciated securities and $3,967,406 related to depreciated
securities. At May 31, 1999, the aggregate cost of investments for
Federal income tax purposes was $39,484,232.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $5,244,424 and $14,685,494 for the six months ended May 31, 1999
and the year ended November 30, 1998, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Six Months Dollar
Ended May 31, 1999 Shares Amount
Shares sold 1,027,938 $ 6,688,839
Shares issued to shareholders in
reinvestment of dividends 89,421 554,410
----------- -------------
Total issued 1,117,359 7,243,249
Shares redeemed (1,956,053) (12,543,910)
----------- -------------
Net decrease (838,694) $ (5,300,661)
=========== =============
Class A Shares for the Year Dollar
Ended November 30, 1998 Shares Amount
Shares sold 2,689,944 $ 18,480,560
Shares issued to shareholders in
reinvestment of dividends 6,992 55,589
----------- -------------
Total issued 2,696,936 18,536,149
Shares redeemed (5,233,128) (36,157,221)
----------- -------------
Net decrease (2,536,192) $ (17,621,072)
=========== =============
Class B Shares for the Six Months Dollar
Ended May 31, 1999 Shares Amount
Shares sold 283,971 $ 1,893,796
Shares issued to shareholders in
reinvestment of dividends 12,809 78,649
----------- -------------
Total issued 296,780 1,972,445
Shares redeemed (226,671) (1,457,451)
Automatic conversion of shares (2,891) (19,283)
----------- -------------
Net increase 67,218 $ 495,711
=========== =============
Class B Shares for the
Year Ended Dollar
November 30, 1998 Shares Amount
Shares sold 1,441,240 $ 10,346,527
Shares redeemed (1,180,688) (8,237,820)
Automatic conversion of shares (19,016) (109,227)
----------- -------------
Net increase 241,536 $ 1,999,480
=========== =============
Class C Shares for the
Six Months Ended Dollar
May 31, 1999 Shares Amount
Shares sold 100,783 $ 715,535
Shares issued to shareholders in
reinvestment of dividends 4,582 28,132
----------- -------------
Total issued 105,365 743,667
Shares redeemed (165,505) (1,150,428)
----------- -------------
Net decrease (60,140) $ (406,761)
=========== =============
Class C Shares for the
Year Ended Dollar
November 30, 1998 Shares Amount
Shares sold 546,414 $ 3,700,841
Shares redeemed (563,728) (3,743,986)
----------- -------------
Net decrease (17,314) $ (43,145)
=========== =============
Class D Shares for the
Six Months Ended Dollar
May 31, 1999 Shares Amount
Shares sold 45,328 $ 305,061
Automatic conversion of shares 2,857 19,283
Shares issued to shareholders in
reinvestment of dividends 5,001 30,957
----------- -------------
Total issued 53,186 355,301
Shares redeemed (61,111) (388,014)
----------- -------------
Net decrease (7,925) $ (32,713)
=========== =============
Class D Shares for the
Year Ended Dollar
November 30, 1998 Shares Amount
Shares sold 268,182 $ 2,022,645
Automatic conversion of shares 18,782 109,227
----------- -------------
Total issued 286,964 2,131,872
Shares redeemed (170,668) (1,152,629)
----------- -------------
Net increase 116,296 $ 979,243
=========== =============
5. Commitments:
At May 31, 1999, the Fund had entered into foreign exchange
contracts, in addition to the contracts listed on the Schedule of
Investments, under which it agreed to sell foreign currency with an
approximate value of $30,000.
6. Capital Loss Carryforward:
At November 30, 1998, the Fund had a net capital loss carryforward
of approximately $43,555,000, of which $1,115,000 expires in 2003,
$17,293,000 expires in 2005 and $25,147,000 expires in 2006. This
amount will be available to offset like amounts of any future
taxable gains.
Merrill Lynch Emerging Tigers Fund, Inc., May 31, 1999
EQUITY PORTFOLIO CHANGES
For the Quarter Ended May 31, 1999
Additions
Allgreen Properties Limited
*Asia Pulp & Paper Company Ltd. (ADR)
Cosco Pacific Limited
Cycle & Carriage Ltd.
DBS Land Limited
Genting BHD
KFC Holdings (Malaysia) BHD
Legend Holdings Limited
Malaysia International Shipping
Corporation BHD 'Foreign'
NIIT Limited
New World Infrastructure Limited
PT Astra International Tbk
PT Bank Internasional Indonesia 'Foreign'
*PT Bank International Indonesia
PT Gudang Garam Tbk
PT Hanjaya Mandala Sampoerna Tbk
PT Indofood Sukses Makmur Tbk
Philippine Long Distance Telephone
Company (ADR)
Public Bank BHD 'Foreign'
Resorts World BHD
San Miguel Corporation 'B'
Siam Commercial Bank Public Company
Limited 'Foreign' (Preferred)
*TelecomAsia Corporation Public Company Limited
TelecomAsia Corporation Public Company
Limited 'Foreign'
Telekom Malaysia BHD
Yanzhou Coal Mining Co. Ltd. 'H'
Deletions
*Asia Pulp & Paper Company Ltd. (ADR)
BEC World Public Company Limited 'Foreign'
China Telecom (Hong Kong) Limited (ADR)
Elec & Eltek International Company Ltd.
Electricity Generating Public Company Limited 'Foreign'
Hana Microelectronics Public Company Limited 'Foreign'
Huaneng Power International, Inc. (ADR)
Jiangsu Expressway Company Ltd. 'H'
*PT Bank International Indonesia
*TelecomAsia Corporation Public Company Limited
Videsh Sanchar Nigam Ltd. (GDR)
YTL Power International BHD
Yanzhou Coal Mining Co., Ltd. (ADR)
Zhejiang Expressway Co. Ltd. 'H'
[FN]
*Added and deleted in the same quarter.
PORTFOLIO INFORMATION
As of May 31, 1999
Percent of
Ten Largest Equity Holdings Net Assets
Singapore Airlines Ltd. 'Foreign' 4.6%
Singapore Press Holdings Ltd. 3.8
Public Bank BHD 'Foreign' 3.6
Development Bank of Singapore Limited
'Foreign' 3.5
Overseas Union Bank Ltd. 'Foreign' 3.5
China Telecom (Hong Kong) Limited 3.2
Genting BHD 3.2
Housing Development Finance Corporation
Ltd.(HDFC) 2.9
Oversea-Chinese Banking Corporation Ltd.
'Foreign' 2.7
Advanced Info Service Public Company
Limited 'Foreign' 2.7
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Donald Cecil, Director
Roland M. Machold, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Kara W.Y. Tan Bhala, Senior Vice President
and Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Phillip Gillespie, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
