MERRILL LYNCH
EMERGING TIGERS
FUND, INC.
FUND LOGO
Annual Report
November 30, 1998
Officers and Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Roland M. Machold, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Kara W.Y. Tan Bhala, Senior Vice President
and Portfolio Manager
Donald C. Burke, Vice President
Gerald M. Richard, 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
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
investment 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 November 30, 1998
INDIA 13.4%
INDONESIA 2.0%
MALAYSIA 11.6%
THAILAND 12.8%
SINGAPORE 24.5%
CHINA 11.1%
PHILIPPINES 11.5%
[FN]
*Total may not equal 100%.
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1998
DEAR SHAREHOLDER
Fiscal Year in Review
For the fiscal year ended November 30, 1998, Merrill Lynch Emerging
Tigers Fund, Inc.'s Class A, Class B, Class C and Class D Shares had
total returns of -20.81%, -21.67%, -21.70% and -21.11%,
respectively, compared to a -23.58% total return for the unmanaged
Goldman Sachs Southeast Asia Emerging Markets Index. (Fund
performance does not reflect sales charges, and would be lower if
sales charges were included. Complete performance information can be
found on pages 3--5 of this report to shareholders.)
We followed a defensive investment strategy throughout most of the
Fund's fiscal year, with cash reserves averaging approximately 20%
of net assets during the period. In addition, we underweighted
exposure to almost all of the emerging tiger stock markets
throughout most of the fiscal year, with the exception of The
People's Republic of China and the Philippines. In addition, our
individual equity holdings were defensive in nature. For example, in
China we focused investments in infrastructure-related stocks, since
the Chinese government continues to make expenditures in this area.
At the same time, we sold investments in banks and real estate
companies throughout the region, since these stocks seemed unlikely
to recover in an environment of sharply declining asset values.
During the second quarter of the Fund's fiscal year, we began to
increase investments in Thailand to an overweighted position, since
we saw evidence of a bottoming in this economy.
Although these strategies enhanced the Fund's return relative to the
Goldman Sachs Southeast Asia Emerging Markets Index, it was
impossible to avoid the sharp declines that the emerging tiger stock
markets registered during the fiscal year. In addition to a
relatively high cash position, our overweighted positions in the
Philippines and Thailand also helped the Fund's performance.
Underweighting investments in Malaysia and Indonesia also made a
positive contribution to the Fund's performance relative to the
Index during the final months of the fiscal year.
Investment Strategy & Outlook
During the November quarter, we reduced the Fund's cash position to
13% of net assets by increasing investments in China, Thailand and
Singapore. In particular, we increased holdings in China Telecom
(Hong Kong) Limited and Bangkok Bank Public Company Limited. We also
established an investment in Hana Microelectronics Public Company
Limited in Thailand, which we believe will benefit from the positive
environment for exports.
It now appears that the worst of the economic deterioration and
financial market turmoil may be behind us in the emerging tiger
stock markets. In November, there were a total of 43 central bank
monetary policy easings worldwide. We believe that Asian stock
markets will benefit the most from this increased liquidity, since
price/earnings ratios are more reasonable than in developed stock
markets.
Economic fundamentals have also begun to improve in the emerging
tiger countries. Nominal interest rates declined in recent months,
but currencies have appreciated relative to the US dollar. These
trends are evidence of greater economic stability. However,
unemployment remains high and consumer demand is depressed. As a
result, domestic demand remains weak in the tiger economies. On a
more positive note, exports are picking up and helping to slow the
decline in industrial production.
Other positive signs within specific countries are the slow but
ongoing restructuring of the banking system in Thailand and the
recent pickup in car sales there. The latter trend suggests an
improvement in consumer demand. In addition, companies in Singapore
are cutting costs, which could improve profits there in 1999. In the
Philippines, the economic situation is relatively good, and it now
appears that President Estrada may be more inclined to make
financial and economic reforms than we originally believed.
As discussed in our last report to shareholders, capital controls
continue in Malaysia. We plan to selectively pursue opportunities to
decrease the Fund's exposure to the Malaysian ringgit prior to the
lifting of currency controls. However, these controls will likely
limit the Fund's ability to repatriate proceeds of its Malaysian
investments. The Fund's investments in Malaysia may not be available
to meet redemptions. Also, we will not be able to reallocate current
Malaysian investments to other investment opportunities outside
Malaysia as long as the restrictions remain in place (which is
currently anticipated to be at least until September 1999). This may
affect the Fund's performance in the upcoming quarters. However, our
Malaysian investments focus on companies whose shares have
relatively high dividend yields. Currently, there are no
restrictions on the repatriation of dividends for foreign investors.
As of November 30, 1998, approximately 11.6% of the Fund's net
assets was invested in Malaysia.
In Conclusion
Although we have not adopted a bullish investment strategy, we have
moved away from the defensive strategy that we followed throughout
the Fund's fiscal year. We believe this is appropriate since the
emerging tiger stock markets are likely to benefit from the
increased global liquidity in the months ahead.
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.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Kara Tan Bhala)
Kara Tan Bhala
Senior Vice President and
Portfolio Manager
January 5, 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.
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1998
PERFORMANCE DATA (concluded)
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** 11/98
ML Emerging Tigers Fund, Inc.++--
Class A Shares* $ 9,475 $4,367
Southeast Asia Emerging Markets
Index++++ $10,000 $3,480
A line graph depicting the growth of an investment in the Fund's
Class B, Class C & Class D Shares compared to growth of an
investment in the Southeast Asia Emerging Markets Index. Beginning
and ending values are:
6/10/96** 11/98
ML Emerging Tigers Fund, Inc.++--
Class B Shares* $10,000 $3,969
ML Emerging Tigers Fund, Inc.++--
Class C Shares* $10,000 $4,044
ML Emerging Tigers Fund, Inc.++--
Class D Shares* $ 9,475 $3,906
Southeast Asia Emerging Markets
Index++++ $10,000 $3,264
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Emerging Tigers Fund, Inc. 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 IFC Investible
Index, is comprised of holdings in China, India, Indonesia,
Malaysia, Pakistan, the Philippines, Singapore, Sri Lanka and
Thailand. The starting date for the Index in the Class A Shares
graph is 2/28/94 and in the Class B, Class C & Class D Shares graph
is 5/31/96.
Past performance is not predictive of future performance.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/98 -45.69% -48.55%
Inception (3/04/94) through 9/30/98 -17.90 -18.86
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/98 -46.32% -48.47%
Inception (6/10/96) through 9/30/98 -36.04 -36.59
[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*
Year Ended 9/30/98 -46.27% -46.80%
Inception (6/10/96) through 9/30/98 -36.04 -36.04
[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*
Year Ended 9/30/98 -45.81% -48.66%
Inception (6/10/96) through 9/30/98 -35.53 -37.02
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<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 -20.81% +34.87% -53.91%++
ML Emerging Tigers Fund, Inc. Class B Shares -21.67 +34.40 -59.50
ML Emerging Tigers Fund, Inc. Class C Shares -21.70 +34.19 -59.56
ML Emerging Tigers Fund, Inc. Class D Shares -21.11 +34.53 -58.77
<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
11/30/98 and Class B, Class C & Class D Shares, from 6/10/96 to
11/30/98.
++Performance results for Class A Shares prior to June 10, 1996 are
for the period when the Fund was closed-end.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1998
<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 Appliances 567,000 Guangdong Kelon Electrical Holdings
Company Limited (Class H) $ 579,226 $ 494,317 1.2%
Infrastructure US$ 611,000 New World Infrastructure Limited,
5% due 7/15/2001 (b) 770,740 516,295 1.2
2,157,000 Zhejiang Expressway Co. Ltd. (Class H) 392,143 403,959 0.9
------------ ------------ ------
1,162,883 920,254 2.1
Mining 39,880 Yanzhou Coal Mining Co., Ltd. (ADR)* 549,182 398,800 0.9
Telecommunications 502,500 ++China Telecom (Hong Kong) Limited 803,687 1,002,728 2.3
12,400 ++China Telecom (Hong Kong)
Limited (ADR)* 499,069 490,575 1.2
------------ ------------ ------
1,302,756 1,493,303 3.5
Transportation 1,526,000 Jiangsu Expressway Company Ltd.
(Class H) 378,841 360,682 0.8
Utilities-- 1,692,000 Beijing Datang Power Generation
Electric & Gas Company Limited (Class H) 920,644 546,335 1.3
38,500 ++Huaneng Power International,
Inc. (ADR)* 589,092 572,687 1.3
------------ ------------ ------
1,509,736 1,119,022 2.6
Total Long-Term Investments
in China 5,482,624 4,786,378 11.1
India Banking & 38,951 Housing Development Finance
Financial Corporation Ltd. 2,424,711 1,992,906 4.6
77,600 State Bank of India (GDR)** 1,187,470 626,620 1.5
------------ ------------ ------
3,612,181 2,619,526 6.1
Oil Services 60,900 Hindustan Petroleum Corporation Ltd. 659,510 348,553 0.8
Pharmaceuticals 38,400 Ranbaxy Laboratories Limited 0 217,112 0.5
38,400 Ranbaxy Laboratories Limited 704,148 219,145 0.5
------------ ------------ ------
704,148 436,257 1.0
Telecommunications 159,700 Mahanagar Telephone Nigam
Ltd. (GDR)** 1,909,693 1,688,827 3.9
67,400 Videsh Sanchar Nigam Ltd.
(GDR)** (d) 1,100,700 689,165 1.6
------------ ------------ ------
3,010,393 2,377,992 5.5
Total Long-Term Investments
in India 7,986,232 5,782,328 13.4
Indonesia Oil--Related 98,200 ++Gulf Indonesia Resources Ltd. (ADR)* 2,083,181 859,250 2.0
Total Long-Term Investments
in Indonesia 2,083,181 859,250 2.0
Malaysia++++ Building & 43,000 I.J.M. Corp. BHD 83,169 19,256 0.0
Construction
Consumer Products 655,500 Amway (Malaysia) Holdings BHD 2,577,576 1,233,522 2.8
Industrial 746,875 O.Y.L. Industries BHD 3,275,655 1,672,334 3.9
Publishing & 1,333,000 Star Publications (Malaysia) BHD 3,528,662 1,603,499 3.7
Broadcasting
Tobacco 53,400 Rothmans of Pall Mall (Malaysia) BHD 225,944 251,857 0.6
Utilities-- 331,000 YTL Power International BHD 302,732 261,766 0.6
Electric & Gas
Total Long-Term Investments
in Malaysia 9,993,738 5,042,234 11.6
Philippines Conglomerates 6,157,200 ++Benpres Holdings Corp. 2,468,856 909,854 2.1
Infrastructure 385,500 ++International Container Terminal
Services, Inc. 33,337 34,376 0.1
Real Estate 4,405,250 Ayala Land, Inc. 2,264,614 1,374,887 3.2
Restaurants 1,365,000 Jollibee Foods Corporation
(Warrants)(a) 700,869 669,459 1.5
Retail 7,486,346 SM Prime Holdings, Inc. 1,229,712 1,411,438 3.3
Utilities-- 174,956 Manila Electric Co. (MERALCO) 'B' 983,374 561,642 1.3
Electric & Gas
Total Long-Term Investments in
the Philippines 7,680,762 4,961,656 11.5
Singapore Airlines 258,000 Singapore Airlines Ltd. 'Foreign' 2,457,414 1,802,552 4.2
Banking & Financial 97,500 Development Bank of Singapore Ltd. 848,944 740,431 1.7
Electronics 200,500 Elec & Eltek International Company Ltd. 940,907 1,032,575 2.4
811,000 Natsteel Electronics Ltd. 1,538,030 1,754,046 4.1
------------ ------------ ------
2,478,937 2,786,621 6.5
Industrial 863,000 Clipsal Industries (Holdings)
Limited 2,200,509 880,260 2.0
Publishing & 194,997 Singapore Press Holdings Ltd.
Broadcasting 'Foreign' 2,463,434 2,073,176 4.8
Telecommuni- US$ 425,000 Fullerton Global Corp., 0% due
cations 4/02/2003 (b)(c) 387,813 401,625 0.9
1,142,000 Singapore Telecommunications, Ltd. 1,758,643 1,907,959 4.4
------------ ------------ ------
2,146,456 2,309,584 5.3
Total Long-Term Investments
in Singapore 12,595,694 10,592,624 24.5
Thailand Banking & 106,800 ++Bangkok Bank Public Company
Financial Limited 'Foreign' 258,550 195,528 0.5
US$ 475,000 Bangkok Bank Public Company Limited,
3.25% due 3/03/2004 (b) 192,750 191,188 0.4
263,000 ++Thai Farmers Bank Public Company
Limited 'Foreign' 355,964 474,203 1.1
------------ ------------ ------
807,264 860,919 2.0
Manufacturing 13,200 ++Hana Microelectronics Public
Company Limited 'Foreign' 33,041 32,954 0.1
Oil--Related 175,600 ++PTT Exploration and Production
Public Company Ltd. 'Foreign' 1,551,345 1,412,594 3.3
Publishing & 225,400 BEC World Public Company Limited
Broadcasting 'Foreign' 1,016,396 1,413,049 3.3
Telecommunications 137,600 Advanced Info Service Public
Company Limited 'Foreign' 703,037 801,553 1.8
Utilities-- 374,975 ++Electricity Generating Public
Electric & Gas Company Limited 'Foreign' 567,596 998,546 2.3
Total Long-Term Investments
in Thailand 4,678,679 5,519,615 12.8
Total Long-Term Investments 50,500,910 37,544,085 86.9
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Face Value Percent of
COUNTRY Amount Short-Term Securities Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Commercial US$ 913,000 Ford Motor Credit Company, 5.51%
States Paper*** due 12/01/1998 $ 913,000 $ 913,000 2.1%
US Government 2,500,000 Federal National Mortgage
Agency Association, 5.02% due 12/18/1998 2,494,074 2,494,074 5.8
Obligations***
Total Investments in Short-Term
Investments 3,407,074 3,407,074 7.9
Total Investments $ 53,907,984 40,951,159 94.8
============
Unrealized Depreciation on Forward Foreign Exchange Contracts--Net**** (13,785) 0.0
Other Assets Less Liabilities 2,237,813 5.2
------------ ------
Net Assets $ 43,175,187 100.0%
============ ======
<FN>
(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.
(b)Convertible Security.
(c)Represents a zero coupon bond.
(d)The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
++Non-income producing security.
++++On October 21, 1998, the Fund's Board of Directors decided to
discount the current Malaysian exchange rate of 3.80 by 12%. This is
due to the capital controls implemented by the Malaysian government,
which froze the Malaysian ringitt at 3.80 until September 1, 1999.
The discount will be amortized on a daily basis from 12% to zero
through September 1, 1999.
*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 reflect the
discount rates paid at the time of purchase by the Fund.
****Forward foreign exchange contracts as of November 30, 1998 were
as follows:
Foreign Unrealized
Currency Expiration Depreciation
Sold Date (Note 1c)
THB 37,925,000 May 1999 $ (13,785)
----------
Total Unrealized Depreciation on Forward
Foreign Exchange Contracts--Net
(US$ Commitment--$1,025,000) $ (13,785)
==========
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of November 30, 1998
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$53,907,984) (Note 1a) $ 40,951,159
Cash 11,688
Foreign cash (Note 1b) 2,509,621
Receivables:
Dividends $ 36,733
Interest 23,032
Capital shares sold 21,195 80,960
------------
Deferred organization expenses (Note 1f) 1,789
Prepaid registration fees and other assets (Note 1f) 12,792
------------
Total assets 43,568,009
------------
Liabilities: Unrealized depreciation on forward foreign exchange contracts
(Note 1c) 13,785
Payables:
Capital shares redeemed 90,955
Securities purchased 86,659
Investment adviser (Note 2) 36,169
Distributor (Note 2) 6,566 220,349
------------
Accrued expenses and other liabilities 158,688
------------
Total liabilities 392,822
------------
Net Assets: Net assets $ 43,175,187
============
Net Assets Class A Common Stock, $0.10 par value, 100,000,000 shares
Consist of: authorized $ 531,434
Class B Common Stock, $0.10 par value, 150,000,000 shares
authorized 85,003
Class C Common Stock, $0.10 par value, 50,000,000 shares
authorized 34,043
Class D Common Stock, $0.10 par value, 100,000,000 shares
authorized 24,684
Paid-in capital in excess of par 98,601,602
Undistributed investment income--net 477,374
Accumulated realized capital losses on investments and foreign
currency transactions--net (Note 6) (43,554,916)
Unrealized depreciation on investments and foreign currency
transactions--net (13,024,037)
------------
Net assets $ 43,175,187
============
Net Asset Class A--Based on net assets of $34,111,088 and 5,314,337 shares
Value: outstanding $ 6.42
============
Class B--Based on net assets of $5,346,462 and 850,034 shares
outstanding $ 6.29
============
Class C--Based on net assets of $2,139,196 and 340,430 shares
outstanding $ 6.28
============
Class D--Based on net assets of $1,578,441 and 246,839 shares
outstanding $ 6.39
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1998
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended November 30, 1998
<S> <S> <C> <C>
Investment Income Dividends $ 795,382
(Notes 1d & 1e): Interest and discount earned 688,934
------------
Total income 1,484,316
------------
Expenses: Investment advisory fees (Note 2) $ 549,520
Accounting services (Note 2) 127,146
Custodian fees 116,418
Transfer agent fees--Class A (Note 2) 111,801
Printing and shareholder reports 73,147
Professional fees 65,587
Registration fees (Note 1f) 65,296
Account maintenance and distribution fees--Class B (Note 2) 57,913
Directors' fees and expenses 37,971
Account maintenance and distribution fees--Class C (Note 2) 26,653
Transfer agent fees--Class B (Note 2) 16,850
Amortization of organization expenses (Note 1f) 10,731
Transfer agent fees--Class C (Note 2) 7,594
Pricing fees 6,311
Transfer agent fees--Class D (Note 2) 4,103
Account maintenance fees--Class D (Note 2) 4,067
Other 6,431
------------
Total expenses 1,287,539
------------
Investment income--net 196,777
------------
Realized & Realized gain (loss) from:
Unrealized Investments--net (25,051,604)
Gain (Loss) on Foreign currency transactions--net 872,225 (24,179,379)
Investments & ------------
Foreign Currency Change in unrealized depreciation on:
Transactions--Net Investments--net 9,394,441
(Notes 1b, 1c, Foreign currency transactions--net (34,098) 9,360,343
1e & 3): ------------ ------------
Net realized and unrealized loss on investments and foreign
currency transactions (14,819,036)
------------
Net Decrease in Net Assets Resulting from Operations $(14,622,259)
============
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: 1998 1997
<S> <S> <C> <C>
Operations: Investment income (loss)--net $ 196,777 $ (452,390)
Realized loss on investments and foreign currency
transactions--net (24,179,379) (17,401,788)
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 9,360,343 (51,862,701)
------------ ------------
Net decrease in net assets resulting from operations (14,622,259) (69,716,879)
------------ ------------
Dividends to Investment income--net:
Shareholders Class A -- (75,491)
(Note 1g): Class D -- (126)
In excess of investment income--net:
Class A (90,622) (486,711)
Class D -- (813)
------------ ------------
Net decrease in net assets resulting from dividends to
shareholders (90,622) (563,141)
------------ ------------
Capital Share Net decrease in net assets derived from capital share
Transactions transactions (14,685,494) (56,250,234)
(Note 4): ------------ ------------
Net Assets: Total decrease in net assets (29,398,375) (126,530,254)
Beginning of year 72,573,562 199,103,816
------------ ------------
End of year* $ 43,175,187 $ 72,573,562
============ ============
<FN>
*Undistributed (accumulated distributions in excess of)
investment income--net (Note 1h) $ 477,374 $ (596,457)
============ ============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1998
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
For the
The following per share data and ratios Period
have been derived from information provided March 4,
in the financial statements. 1994++ to
For the Year Ended November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1998++++ 1997++++ 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 8.12 $ 15.59 $ 13.40 $ 14.47 $ 14.18
Operating --------- --------- --------- --------- ---------
Performance: Investment income (loss)--net .04 (.04) .05 .03 .12
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (1.73) (7.38) 2.15 (.96) .19
--------- --------- --------- --------- ---------
Total from investment operations (1.69) (7.42) 2.20 (.93) .31
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net -- (.01) (.01) (.12) --
In excess of investment income--net (.01) (.04) -- -- --
Realized gain on investments--net -- -- -- (.02) --
--------- --------- --------- --------- ---------
Total dividends and distributions (.01) (.05) (.01) (.14) --
--------- --------- --------- --------- ---------
Capital charge resulting from issuance
of Common Stock -- -- -- --+++++ (.02)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 6.42 $ 8.12 $ 15.59 $ 13.40 $ 14.47
========= ========= ========= ========= =========
Total Investment Based on net asset value per share (20.81%) (47.76%) 16.43% (6.23%) 2.05%+++
Return:** ========= ========= ========= ========= =========
Ratios to Average Expenses 2.17% 1.69% 1.36% 1.32% 1.32%*
Net Assets: ========= ========= ========= ========= =========
Investment income (loss)--net .52% (.27%) .23% .24% 1.12%*
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 34,111 $ 63,760 $ 193,545 $ 294,830 $ 318,414
Data: ========= ========= ========= ========= =========
Portfolio turnover 73.52% 35.63% 44.09% 18.84% 9.10%
========= ========= ========= ========= =========
<CAPTION>
Class B Class C
The following per share data and ratios For the For the
have been derived from information Period Period
provided in the financial statements. For the June 10, For the June 10,
Year Ended 1996++ to Year Ended 1996++ to
Increase (Decrease) in Net November 30, Nov. 30, November 30, Nov. 30,
Asset Value: 1998++++ 1997++++ 1996 1998++++ 1997++++ 1996
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of
Operating period $ 8.03 $ 15.53 $ 15.53 $ 8.02 $ 15.52 $ 15.53
Performance: --------- --------- --------- --------- --------- ---------
Investment loss--net (.03) (.15) (.05) (.03) (.11) (.05)
Realized and unrealized gain
(loss) on investments and foreign
currency transactions--net (1.71) (7.35) .05 (1.71) (7.39) .04
--------- --------- --------- --------- --------- ---------
Total from investment
operations (1.74) (7.50) -- (1.74) (7.50) (.01)
--------- --------- --------- --------- --------- ---------
Net asset value, end of
period $ 6.29 $ 8.03 $ 15.53 $ 6.28 $ 8.02 $ 15.52
========= ========= ========= ========= ========= =========
Total Investment Based on net asset value
Return:** per share (21.67%) (48.29%) .00%+++ (21.70%) (48.32%) (.06%)+++
========= ========= ========= ========= ========= =========
Ratios to Average Expenses 3.22% 2.75% 2.67%* 3.22% 2.83% 2.68%*
Net Assets: ========= ========= ========= ========= ========= =========
Investment loss--net (.51%) (1.20%) (.99%)* (.52%) (1.01%) (.98%)*
========= ========= ========= ========= ========= =========
Supplemental Net assets, end of period
Data: (in thousands) $ 5,347 $ 4,887 $ 3,719 $ 2,139 $ 2,870 $ 887
========= ========= ========= ========= ========= =========
Portfolio turnover 73.52% 35.63% 44.09% 73.52% 35.63% 44.09%
========= ========= ========= ========= ========= =========
<CAPTION>
Class D
For the
The following per share data and ratios have Period
been derived from information provided in For the June 10,
the financial statements. Year Ended 1996++ to
November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1998++++ 1997++++ 1996
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 8.10 $ 15.58 $ 15.53
Operating --------- --------- ---------
Performance: Investment income (loss)--net .02 (.04) (.01)
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net (1.73) (7.41) .06
--------- --------- ---------
Total from investment operations (1.71) (7.45) .05
--------- --------- ---------
Less dividends:
Investment income--net -- --+++++ --
In excess of investment income--net -- (.03) --
--------- --------- ---------
Total dividends -- (.03) --
--------- --------- ---------
Net asset value, end of period $ 6.39 $ 8.10 $ 15.58
========= ========= =========
Total Investment Based on net asset value per share (21.11%) (47.91%) .32%+++
Return:** ========= ========= =========
Ratios to Average Expenses 2.44% 2.01% 1.88%*
Net Assets: ========= ========= =========
Investment income (loss)--net .28% (.30%) (.34%)*
========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 1,578 $ 1,057 $ 953
Data: ========= ========= =========
Portfolio turnover 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., November 30, 1998
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. 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 (options 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. 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
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 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.
(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.
(h) Reclassification--Generally accepted accounting principles
require that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting.
Accordingly, current year's permanent book/tax differences of
$967,676 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. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or "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.
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1996
NOTES TO FINANCIAL STATEMENTS (concluded)
For the year ended November 30, 1998, 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 $1,571 $23,461
Class D $1,571 $22,752
For the year ended November 30, 1998, MLPF&S received contingent
deferred sales charges of $24,937 and $8,233 relating to
transactions in Class B and Class C Shares, respectively.
In addition, MLPF&S received $30,668 in commissions on the execution
of portfolio security transactions for the Fund for the year ended
November 30, 1998.
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 year ended November 30, 1998 were $34,174,822 and
$32,805,861, respectively.
Net realized gains (losses) for the year ended November 30, 1998 and
net unrealized losses as of November 30, 1998 were as
follows:
Realized
Gains Unrealized
(Losses) Losses
Long-term investments $(25,051,633) $(12,956,825)
Short-term investments 29 --
Forward foreign exchange
contracts 1,142,363 (13,785)
Foreign currency transactions (270,138) (53,427)
------------ ------------
Total $(24,179,379) $(13,024,037)
============ ============
As of November 30, 1998, net unrealized depreciation for Federal
income tax purposes aggregated $13,553,599, of which $1,986,847
related to appreciated securities and $15,540,446 related to
depreciated securities. At November 30, 1998, the aggregate cost of
investments for Federal income tax purposes was $54,504,758.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $14,685,494 and $56,250,234 for the years ended November 30,
1998 and November 30, 1997, respectively.
Transactions in capital shares for each class were as follows:
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 A Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 690,781 $ 7,889,564
Shares issued to shareholders in
reinvestment of dividends 23,243 357,947
------------- --------------
Total issued 714,024 8,247,511
Shares redeemed (5,274,309) (71,433,932)
------------- --------------
Net decrease (4,560,285) $ (63,186,421)
============= ==============
Class B Shares for the Year Dollar
Ended 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 B Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 720,863 $ 7,993,947
Shares redeemed (347,593) (4,704,429)
Automatic conversion of shares (4,293) (46,751)
------------- --------------
Net increase 368,977 $ 3,242,767
============= ==============
Class C Shares for the Year Dollar
Ended 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 C Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 458,542 $ 5,177,237
Shares redeemed (157,967) (2,128,264)
------------- --------------
Net increase 300,575 $ 3,048,973
============= ==============
Class D Shares for the Year Dollar
Ended 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
============= ==============
Class D Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 204,766 $ 2,315,219
Automatic conversion of shares 4,265 46,751
Shares issued to shareholders in
reinvestment of dividends 48 740
------------- --------------
Total issued 209,079 2,362,710
Shares redeemed (139,676) (1,718,263)
------------- --------------
Net increase 69,403 $ 644,447
============= ==============
5. Commitments:
At November 30, 1998, the Fund had entered into foreign exchange
contracts, in addition to the contracts listed on the Schedule of
Investments, under which it agreed to purchase foreign currency with
an approximate value of $7,500.
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.
7. Subsequent Event:
On December 1, 1998, the Fund's Board of Directors declared an
ordinary income dividend in the amount of $.176452 per Class A
Share, $.107392 per Class B Share, $.093221 per Class C Share and
$.159614 per Class D Share payable on December 29, 1998 to
shareholders of record as of December 18, 1998.
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1998
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Emerging Tigers Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Emerging Tigers Fund, Inc. as of November 30, 1998, 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 four-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, 1998, 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, 1998,
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 12, 1999
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
The following information summarizes all per share distributions
paid by Merrill Lynch Emerging Tigers Fund, Inc. during its taxable
year ended November 30, 1998:
<TABLE>
<CAPTION>
Domestic Foreign Taxes
Record Payable Non-Qualifying Total Paid or
Date Date Ordinary Income Ordinary Income Withheld
<S> <C> <C> <C> <C> <C>
Class A Shares 12/19/97 12/30/97 $.012165 $.012165 $.012269
</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.
Please retain this information for your records.
EQUITY PORTFOLIO CHANGES (unaudited)
For the Quarter Ended November 30, 1998
Additions
China Telecom (Hong Kong) Limited (ADR)
Hana Microelectronics Public Company Limited 'Foreign'
Jiangsu Expressway Company Ltd. (Class H)
Rothmans of Pall Mall (Malaysia) BHD
Deletions
Berjaya Sports Toto BHD
City Developments Ltd.
Genting BHD
MNI Holdings BHD
New World Infrastructure Ltd.
Resorts World BHD
Shanghai Industrial Holdings Ltd.
Sime Darby BHD
Telekom Malaysia BHD
United Overseas Bank Ltd. 'Foreign'
PORTFOLIO INFORMATION (unaudited)
As of November 30, 1998
Percent of
Ten Largest Equity Holdings Net Assets
Singapore Press Holdings Ltd. 'Foreign' 4.8%
Housing Development Finance Corporation Ltd. 4.6
Singapore Telecommunications, Ltd. 4.4
Singapore Airlines Ltd. 'Foreign' 4.2
Natsteel Electronics Ltd. 4.1
Mahanagar Telephone Nigam Ltd. (GDR) 3.9
O.Y.L. Industries BHD 3.9
Star Publications (Malaysia) BHD 3.7
BEC World Public Company Limited 'Foreign' 3.3
PTT Exploration and Production Public
Company Ltd. 'Foreign' 3.3
