MERRILL LYNCH
EMERGING TIGERS
FUND, INC.
FUND LOGO
Annual Report
November 30, 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
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 asa 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, 1999
India 19.1%
Indonesia 2.0%
Malaysia 15.3%
Thailand 5.9%
Singapore 20.7%
China 17.1%
Hong Kong 1.7%
South Korea 8.7%
Philippines 5.7%
[FN]
*Total may not equal 100%.
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1999
DEAR SHAREHOLDER
Fiscal Year in Review
For the fiscal year ended November 30, 1999, Merrill Lynch Emerging
Tigers Fund, Inc.'s Class A, Class B, Class C and Class D Shares had
total returns of +40.97%, +39.44%, +39.67% and +40.78%, respectively,
compared to a +43.96% 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.)
As we forecasted, the November quarter was indeed a very good one in
terms of Asian stock markets' performance. The stock markets were
driven primarily by the technology and telecommunications sectors.
The Fund was therefore very well positioned for the fourth fiscal
quarter rally because approximately 25% of its assets were invested
in these sectors.
The South Korean economy continues its robust recovery. The
government has kept short-term interest rates low and has made it
clear that the central bank would provide as much liquidity as
required to prevent interest rates from rising substantially. This
move prevented a second financial crisis, which could have arisen as
a result of the Daewoo Corporation bankruptcy. We added new South
Korean positions in the Fund in order to gain exposure to the
technology and telecommunication sectors as well as to increase the
liquidity of the portfolio. Our new holdings included Korea Electric
Power Corporation, SK Telecom Co. Ltd., Samsung Electronics Co.,
Hyundai Electronics Industries Co., and Internet companies such as
Korea Thrunet Co., Ltd.
The Singapore economy was helped by the rebound in global
electronics demand. This sector accounts for about 70% of non-oil
domestic exports. With exports at 130% of gross domestic product
(GDP), Singapore should continue to ride the rising global business
cycle in 2000. For the year 2000, there are concerns about a
relative growth underperformance rather than absolute growth
disappointment. Real GDP could rise 5.6% in 2000, underpinned by an
expected 0%--30% expansion in wafer fabrication capacity and a
supportive global environment. We added Chartered Semiconductor
Manufacturing Limited, the third-largest dedicated foundry for
outsourcing of wafer production in the world in the last months of
the Fund's fiscal year.
The macroeconomic news in Malaysia remains positive as the economy
enters its ninth month of expansion. The export recovery is among
the strongest in the region. For the three-month period ended
November 30, 1999, US dollar exports rose more than 23% compared to
the same period in 1998 or double the rate experienced by most
peers. Accordingly, we expect the current account surplus to be
maintained.
Politically, Malaysia's ruling party has won the latest elections,
which means that Prime Minister Mahathir will continue to lead the
country. However, the United Malay National Organisation (UMNO),
which is the largest party in the ruling coalition, lost a number of
its parliamentary seats to the opposition Muslim group, the Pan
Malaysia Islamic Party. This erosion of support among the bumiputera
community does not bode well for the Prime Minister's position as
head of UMNO, in our opinion. It is possible that changes may occur
at the next UMNO elections, which will be held in mid-2000.
Despite the apparent political and economic stability, foreign
investors are still hesitant to invest in Malaysia because of the
many adverse investment restrictions that were put in place during
the Asian financial crisis. Investors are also wary of the Prime
Minister's antagonistic attitude toward foreign investors.
Furthermore, since the Malaysian market will not be part of the
Morgan Stanley emerging market or Asian indexes until May 2000,
investors are likely to avoid further investments into the country
until that time.
As outlined in our strategy in our August report to shareholders, we
reduced our positions in the Philippines, Malaysia, Indonesia and
Thailand. However, we continued to hold shares of companies that we
believe were Year 2000 compliant. These are the largest-
capitalization, well-funded and well-managed companies in these
countries. Another reason we underweighted these countries is that
they offer few stocks in the technology sector, a prime focus of the
Fund in the November quarter. On the other hand, we purchased shares
in the Indian software company, NIIT Limited, the Internet company
Satyam Infoway Limited and India's international telephony company,
Videsh Sanchar Nigam Ltd. Hence, we increased our weighting in India
through these purchases.
Investment Strategy & Outlook
We expect Asian equity markets to continue to be strong in 2000 for
three main reasons. First, economic recovery will push ahead
resulting in stronger corporate profit growth. Second, corporate
restructuring is likely to make further progress in 2000. Companies
are cutting costs, streamlining operations and becoming more
productive. Cost savings will therefore lead to higher profit
margins and better earnings. Third, Asia is entering a technology
upgrade cycle. The region is becoming the center of gravity for
technological investment. The region has always been able to upgrade
its comparative advantage, from clothing, textiles and toys twenty
years ago to automobiles and electronic goods a decade ago. Today
their product strength is moving into information technology,
components and software.
With these factors in mind, we are likely to focus on companies with
strong restructuring benefits, the technology and telecommunication
sectors and consumer and export-related companies, which should
profit from strong domestic and global economic growth.
In Conclusion
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,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Kara Tan Bhala)
Kara Tan Bhala
Senior Vice President and
Portfolio Manager
January 11, 2000
To reduce shareholder expenses, Merrill Lynch Emerging Tigers Fund,
Inc. will no longer be printing and mailing quarterly reports to
shareholders. We will continue to provide you with reports on a semi-
annual and annual basis.
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, 1999
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** 11/99
ML Emerging Tigers Fund, Inc.++--
Class A Shares* $ 9,475 $ 6,156
Southeast Asia Emerging Markets
Index++++ $10,000 $ 5,011
A line graph depicting the growth of an investment in the Fund's
Class B, Class C and Class D Shares compared to growth of an
investment in the Southeast Asia Emerging Markets Index.
Beginning and ending values are:
6/10/96** 11/99
ML Emerging Tigers Fund, Inc.++--
Class B Shares* $10,000 $ 5,592
ML Emerging Tigers Fund, Inc.++--
Class C Shares* $10,000 $ 5,648
ML Emerging Tigers Fund, Inc.++--
Class D Shares* $ 9,475 $ 5,499
Southeast Asia Emerging Markets
Index++++ $10,000 $ 4,700
[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 from 2/28/94 and in the Class B, Class C & Class D Shares'
graph is from 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 9/30/99 +39.07% +31.77%
Five Years Ended 9/30/99 -12.31 -13.25
Inception (3/04/94) through 9/30/99 -9.76 -10.63
[FN]
*Maximum sales charge is 5.25%. Prior to October 21, 1994, Class A
Shares were offered at a higher sales charge. Thus, actual returns
would have been lower than shown for the five-year and inception
periods.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/99 +37.93% +33.93%
Inception (6/10/96) through 9/30/99 -19.30 -19.54
[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 9/30/99 +37.80% +36.80%
Inception (6/10/96) through 9/30/99 -19.33 -19.33
[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 9/30/99 +38.84% +31.55%
Inception (6/10/96) through 9/30/99 -18.70 -20.01
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<TABLE>
Recent
Performance
Results*
<CAPTION>
3 Month 12 Month Since Inception
As of November 30, 1999 Total Return Total Return Total Return
<S> <C> <C> <C>
ML Emerging Tigers Fund, Inc. Class A Shares +7.84% +40.97% -35.03%++
ML Emerging Tigers Fund, Inc. Class B Shares +7.48 +39.44 -43.52
ML Emerging Tigers Fund, Inc. Class C Shares +7.60 +39.67 -43.52
ML Emerging Tigers Fund, Inc. Class D Shares +7.87 +40.78 -41.96
<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 dates are from 3/04/94 for Class A Shares and
from 6/10/96 for Class B, Class C & Class D Shares.
++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, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Long-Term Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
China Appliances 567,000 Guangdong Kelon Electrical Holdings
Company Limited 'H' $ 489,177 1.0%
Electronic 616,000 ++Great Wall Technology Co. 'H' 519,553 1.1
Components
Electronics 1,390,000 Legend Holdings Limited 3,239,676 6.7
Mining 1,994,000 Yanzhou Coal Mining Co. Ltd. 'H' 609,813 1.2
Telecommunications 643,527 ++China Telecom (Hong Kong) Limited 3,438,928 7.1
Total Long-Term Investments in China 8,297,147 17.1
Hong Kong Computer Systems 650,000 Founder Hong Kong Limited 518,935 1.1
Telecommunications 324,000 ++Pacific Century CyberWorks Limited 277,444 0.6
Total Long-Term Investments in Hong Kong 796,379 1.7
India Banking 287,957 Corporation Bank 769,237 1.6
167,510 ++Housing Development Finance Corporation
Ltd. (HDFC) 969,764 2.0
161,000 State Bank of India 867,609 1.8
------------ ------
2,606,610 5.4
Computer Software 18,990 NIIT Limited 1,029,922 2.1
6,410 NIIT Limited (New Shares) 347,646 0.7
3,900 ++Satyam Computer Services Limited 172,633 0.4
------------ ------
1,550,201 3.2
Electrical & 100,000 ++Bharat Heavy Electricals Ltd. 557,351 1.2
Electronics
Financial Services 85,750 ++ICICI Ltd. (ADR)* 953,969 2.0
Internet Software 7,600 ++Satyam Infoway Limited (ADR)* 889,200 1.8
Oil & Gas Related 90,700 Gas Authority of India Ltd. (GDR)** (b) 834,440 1.7
Oil Services 5,800 Hindustan Petroleum Corporation Ltd. 28,444 0.1
85,550 Hindustan Petroleum Corporation Ltd. 419,556 0.8
------------ ------
448,000 0.9
Pharmaceuticals 42,780 ++Ranbaxy Laboratories Limited 979,902 2.0
Telecommunications 20,400 Videsh Sanchar Nigam Ltd. (GDR)** 459,000 0.9
Total Long-Term Investments in India 9,278,673 19.1
Indonesia Foods 376,000 ++PT Indofood Sukses Makmur Tbk 414,194 0.9
Retail--Stores 2,300,000 ++PT Matahari Putra Prima Tbk 260,467 0.5
Tobacco 61,500 PT Gudang Garam Tbk 146,891 0.3
61,500 ++PT Hanjaya Mandala Sampoerna Tbk 140,981 0.3
------------ ------
287,872 0.6
Total Long-Term Investments in Indonesia 962,533 2.0
Malaysia Banking 297,000 Malayan Banking Berhad 1,016,053 2.1
658,000 Public Bank Berhad 'Foreign' 658,000 1.4
------------ ------
1,674,053 3.5
Building & 43,000 IJM Corporation Bhd 31,910 0.1
Construction
Consumer Products 180,500 Amway (Malaysia) Holdings Berhad 446,500 0.9
Leisure 191,000 Genting Berhad 663,474 1.4
294,000 Resorts World Berhad 789,158 1.6
------------ ------
1,452,632 3.0
Publishing & 341,000 Star Publications (Malaysia) 816,605 1.7
Broadcasting
Restaurants 367,000 KFC Holdings (Malaysia) Berhad 453,921 0.9
Telecommunications 234,000 Telekom Malaysia Berhad 738,947 1.5
Tobacco 141,400 Rothmans of Pall Mall (Malaysia) Berhad 1,004,684 2.1
Transportation 529,000 Malaysia International Shipping Corporation
Berhad 'Foreign' 786,539 1.6
Total Long-Term Investments in Malaysia 7,405,791 15.3
Philippines Banking 38,500 Metropolitan Bank & Trust Company 277,689 0.6
Beverages 165,000 San Miguel Corporation 'B' 227,934 0.4
Publishing & 90,000 ++ABS-CBN Broadcasting Corporation 97,922 0.2
Broadcasting
Restaurants 594,000 Jollibee Foods Corporation (Warrants)(a) 185,171 0.4
Retail 2,543,346 SM Prime Holdings, Inc. 404,199 0.8
Telecommunications 59,000 Philippine Long Distance Telephone
Company (ADR)* 1,209,500 2.5
Utilities-- 144,956 Manila Electric Company 'B' 372,136 0.8
Electric & Gas
Total Long-Term Investments in the Philippines 2,774,551 5.7
Singapore Airlines 148,000 Singapore Airlines Limited 1,496,906 3.1
Banking 153,542 DBS Group Holdings Limited 1,991,442 4.1
179,893 Overseas Union Bank Ltd. 834,820 1.7
------------ ------
2,826,262 5.8
Computer Services 72,062 Datacraft Asia Limited 348,780 0.7
Conglomerates 461,000 Singapore Technologies Engineering Ltd. 688,428 1.4
Electronics 110,000 NatSteel Electronics Ltd. 454,843 0.9
Foods 789,500 Del Monte Pacific Ltd. 410,540 0.8
Publishing & 98,497 Singapore Press Holdings Ltd. 1,845,940 3.8
Broadcasting
Real Estate 107,000 City Developments Limited 607,955 1.3
Semiconductors 10,500 ++Chartered Semiconductor Manufacturing
Limited (ADR)* 559,125 1.2
Telecommunications 420,000 Singapore Telecommunications, Ltd. 794,622 1.7
Total Long-Term Investments in Singapore 10,033,401 20.7
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Held/ Percent of
COUNTRY Industries Face Amount Long-Term Securities Value Net Assets
<S> <S> <C> <S> <C> <C>
South Korea Banking 20,700 Kookmin Bank $ 344,702 0.7%
8,430 Korea Technology Banking Company 114,921 0.3
37,650 Shinhan Bank 438,546 0.9
------------ ------
898,169 1.9
Electronics 11,270 Hyundai Electronics Industries Co. 231,429 0.5
2,340 Samsung Electronics Co. 484,556 1.0
US$ 280,000 Samsung Electronics Co., 0% due 12/31/2007
(Convertible) (Regulation S) (c) 456,400 0.9
------------ ------
1,172,385 2.4
Internet 1,400 ++Korea Thrunet Co., Ltd. (Class A) 77,700 0.1
Telecommunications 9,900 ++Korea Telecom Corporation (ADR)* 524,700 1.1
400 SK Telecom Co. Ltd. 924,590 1.9
------------ ------
1,449,290 3.0
Utilities--Electric 16,150 Korea Electric Power Corporation 640,984 1.3
Total Long-Term Investments in South Korea 4,238,528 8.7
Thailand Banking & Financial 330,000 ++Siam Commercial Bank Public Company
Limited 'Foreign' (Preferred) 349,218 0.7
405,000 Thai Farmers Bank Public Company
Limited 'Foreign' 545,472 1.1
------------ ------
894,690 1.8
Oil--Related 75,317 PTT Exploration and Production Public
Company Limited 'Foreign' 463,727 1.0
Telecommunications 78,800 Advanced Info Service Public Company
Limited 'Foreign' 1,128,025 2.3
379,000 ++TelecomAsiaCorporation Public Company
Limited 'Foreign' 374,333 0.8
------------ ------
1,502,358 3.1
Total Long-Term Investments in Thailand 2,860,775 5.9
Total Investments (Cost--$36,527,698) 46,647,778 96.2
Other Assets Less Liabilities 1,835,836 3.8
------------ ------
Net Assets $ 48,483,614 100.0%
============ ======
<FN>
++Non-income producing security.
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
(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)The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
(c)Represents a zero coupon bond.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of November 30, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$36,527,698) $ 46,647,778
Foreign cash 1,688,857
Receivables:
Securities sold $ 3,633,786
Dividends 23,822
Capital shares sold 9,841 3,667,449
------------
Prepaid registration fees 37,798
------------
Total assets 52,041,882
------------
Liabilities: Payables:
Securities purchased 1,915,441
Custodian bank 1,255,172
Capital shares redeemed 101,850
Distributor 8,768
Investment adviser 5,242 3,286,473
------------
Accrued expenses and other liabilities 271,795
------------
Total liabilities 3,558,268
------------
Net Assets: Net assets $ 48,483,614
============
Net Assets Class A Common Stock, $.10 par value, 100,000,000
Consist of: shares authorized $ 413,366
Class B Common Stock, $.10 par value, 150,000,000
shares authorized 90,135
Class C Common Stock, $.10 par value, 50,000,000
shares authorized 25,731
Class D Common Stock, $.10 par value, 100,000,000
shares authorized 24,185
Paid-in capital in excess of par 89,554,097
Undistributed investment income--net 5,528
Accumulated realized capital losses on investments and
foreign currency transactions--net (51,631,803)
Unrealized appreciation on investments and foreign
currency transactions--net 10,002,375
------------
Net assets $ 48,483,614
============
Net Asset Class A--Based on net assets of $36,367,427 and
Value: 4,133,664 shares outstanding $ 8.80
============
Class B--Based on net assets of $7,773,839 and
901,350 shares outstanding $ 8.62
============
Class C--Based on net assets of $2,222,282 and
257,309 shares outstanding $ 8.64
============
Class D--Based on net assets of $2,120,066 and
241,853 shares outstanding $ 8.77
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1999
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended November 30, 1999
<S> <S> <C> <C>
Investment Income: Dividends (net of $12,617 foreign withholding tax) $ 625,038
Interest and discount earned 138,981
------------
Total income 764,019
------------
Expenses: Investment advisory fees $ 433,987
Custodian fees 157,598
Transfer agent fees--Class A 93,404
Accounting services 88,617
Professional fees 66,989
Printing and shareholder reports 66,681
Account maintenance and distribution fees--Class B 64,296
Registration fees 56,409
Directors' fees and expenses 44,887
Account maintenance and distribution fees--Class C 20,826
Transfer agent fees--Class B 20,226
Transfer agent fees--Class C 6,703
Pricing fees 5,544
Transfer agent fees--Class D 5,063
Account maintenance fees--Class D 4,459
Amortization of organization expenses 1,789
Other 4,639
------------
Total expenses 1,142,117
------------
Investment loss--net (378,098)
------------
Realized & Realized loss from:
Unrealized Investments--net (8,070,514)
Gain (Loss) on Foreign currency transactions--net 16,077 (8,054,437)
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net 23,076,905
Foreign currency transactions--net (50,493) 23,026,412
------------ ------------
Net realized and unrealized gain on investments
and foreign currency transactions 14,971,975
------------
Net Increase in Net Assets Resulting from Operations $ 14,593,877
============
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: 1999 1998
<S> <S> <C> <C>
Operations: Investment income (loss)--net $ (378,098) $ 196,777
Realized loss on investments and foreign currency
transactions--net (8,054,437) (24,179,379)
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 23,026,412 9,360,343
------------ ------------
Net increase (decrease) in net assets resulting from operations 14,593,877 (14,622,259)
------------ ------------
Dividends to Investment income--net:
Shareholders: Class A (403,969) --
Class B (42,164) --
Class C (13,885) --
Class D (17,356) --
In excess of investment income--net:
Class A (493,345) (90,622)
Class B (51,493) --
Class C (16,957) --
Class D (21,196) --
------------ ------------
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
Transactions: share transactions (8,225,085) (14,685,494)
------------ ------------
Net Assets: Total increase (decrease) in net assets 5,308,427 (29,398,375)
Beginning of year 43,175,187 72,573,562
------------ ------------
End of year* $ 48,483,614 $ 43,175,187
============ ============
<FN>
*Undistributed investment income--net $ 5,528 $ 477,374
============ ============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1999
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. Class A
For the Year 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 year $ 6.42 $ 8.12 $ 15.59 $ 13.40 $ 14.47
Operating --------- --------- --------- --------- ---------
Performance: Investment income (loss)--net (.05) .04 (.04) .05 .03
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net 2.61 (1.73) (7.38) 2.15 (.96)
--------- --------- --------- --------- ---------
Total from investment operations 2.56 (1.69) (7.42) 2.20 (.93)
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.08) -- (.01) (.01) (.12)
In excess of investment income--net (.10) (.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 year $ 8.80 $ 6.42 $ 8.12 $ 15.59 $ 13.40
========= ========= ========= ========= =========
Total Investment Based on net asset value per share 40.97% (20.81%) (47.76%) 16.43% (6.23%)
Return:* ========= ========= ========= ========= =========
Ratios to Average Expenses 2.42% 2.17% 1.69% 1.36% 1.32%
Net Assets: ========= ========= ========= ========= =========
Investment income (loss)--net (.66%) .52% (.27%) .23% .24%
========= ========= ========= ========= =========
Supplemental Net assets, end of year
Data: (in thousands) $ 36,368 $ 34,111 $ 63,760 $ 193,545 $ 294,830
========= ========= ========= ========= =========
Portfolio turnover 90.45% 73.52% 35.63% 44.09% 18.84%
========= ========= ========= ========= =========
<FN>
*Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class B
For the
Period
The following per share data and ratios have been derived June 10,
from information provided in the financial statements. For the Year Ended 1996++ to
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 (.12) (.03) (.15) (.05)
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net 2.56 (1.71) (7.35) .05
-------- -------- -------- --------
Total from investment operations 2.44 (1.74) (7.50) --
-------- -------- -------- --------
Less dividends:
Investment income--net (.05) -- -- --
In excess of investment income--net (.06) -- -- --
-------- -------- -------- --------
Total dividends (.11) -- -- --
-------- -------- -------- --------
Net asset value, end of period $ 8.62 $ 6.29 $ 8.03 $ 15.53
======== ======== ======== ========
Total Investment Based on net asset value per share 39.44% (21.67%) (48.29%) .00%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 3.45% 3.22% 2.75% 2.67%*
Net Assets: ======== ======== ======== ========
Investment loss--net (1.69%) (.51%) (1.20%) (.99%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 7,774 $ 5,347 $ 4,887 $ 3,719
Data: ======== ======== ======== ========
Portfolio turnover 90.45% 73.52% 35.63% 44.09%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class C
For the
Period
The following per share data and ratios have been derived June 10,
from information provided in the financial statements. For the Year Ended 1996++ to
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 (.12) (.03) (.11) (.05)
Realized and unrealized gain (loss) on
investments and foreign currency transactions--net 2.57 (1.71) (7.39) .04
-------- -------- -------- --------
Total from investment operations 2.45 (1.74) (7.50) (.01)
-------- -------- -------- --------
Less dividends:
Investment income--net (.04) -- -- --
In excess of investment income--net (.05) -- -- --
-------- -------- -------- --------
Total dividends (.09) -- -- --
-------- -------- -------- --------
Net asset value, end of period $ 8.64 $ 6.28 $ 8.02 $ 15.52
======== ======== ======== ========
Total Investment Based on net asset value per share 39.67% (21.70%) (48.32%) (.06%)+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 3.46% 3.22% 2.83% 2.68%*
Net Assets: ======== ======== ======== ========
Investment loss--net (1.69%) (.52%) (1.01%) (.98%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 2,222 $ 2,139 $ 2,870 $ 887
Data: ======== ======== ======== ========
Portfolio turnover 90.45% 73.52% 35.63% 44.09%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class D
For the
Period
The following per share data and ratios have been derived June 10,
from information provided in the financial statements. For the Year Ended 1996++ to
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 (.07) .02 (.04) (.01)
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net 2.61 (1.73) (7.41) .06
-------- -------- -------- --------
Total from investment operations 2.54 (1.71) (7.45) .05
-------- -------- -------- --------
Less dividends:
Investment income--net (.07) -- --+++++ --
In excess of investment income--net (.09) -- (.03) --
-------- -------- -------- --------
Total dividends (.16) -- (.03) --
-------- -------- -------- --------
Net asset value, end of period $ 8.77 $ 6.39 $ 8.10 $ 15.58
======== ======== ======== ========
Total Investment Based on net asset value per share 40.78% (21.11%) (47.91%) .32%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 2.68% 2.44% 2.01% 1.88%*
Net Assets: ======== ======== ======== ========
Investment income (loss)--net (.93%) .28% (.30%) (.34%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 2,120 $ 1,578 $ 1,057 $ 953
Data: ======== ======== ======== ========
Portfolio turnover 90.45% 73.52% 35.63% 44.09%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
+++++Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 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. 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 that 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 that 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.
(h) Custodian bank--The Fund recorded an amount payable to the
custodian bank reflecting an overnight overdraft which resulted from
a failed trade which settled the next day.
(i) 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
$22,450 have been reclassified between accumulated net realized
capital losses and undistributed net investment income and $944,167
has been reclassified between paid-in capital in excess of par and
undistributed net investment income. These reclassifications have no
effect on net asset value 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 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 .25% .75%
Class C .25% .75%
Class D .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, 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 $1,980 $5,008
Class D $ 370 $5,754
For the year ended November 30, 1999, MLPF&S received contingent
deferred sales charges of $27,379 and $2,166 relating to
transactions in Class B and Class C Shares, respectively.
In addition, MLPF&S received $103,434 in commissions on the
execution of portfolio security transactions for the Fund for the
year ended November 30, 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, MLPFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended November 30, 1999 were $36,888,311 and
$43,050,354, respectively.
Net realized gains (losses) for the year ended November 30, 1999 and
net unrealized gains as of November 30, 1999 were as follows:
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $ (8,070,728) $ 10,120,080
Short-term investments 214 --
Forward foreign exchange
contracts 16,608 --
Foreign currency transactions (531) (117,705)
------------ ------------
Total $ (8,054,437) $ 10,002,375
============ ============
As of November 30, 1999, net unrealized appreciation for Federal
income tax purposes aggregated $10,006,461, of which $12,009,289
related to appreciated securities and $2,002,828 related to
depreciated securities. At November 30, 1999, the aggregate cost of
investments for Federal income tax purposes was $36,641,317.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $8,225,085 and $14,685,494 for the years ended November 30, 1999
and November 30, 1998, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended November 30, 1999 Shares Amount
Shares sold 1,849,253 $ 13,389,701
Shares issued to shareholders in
reinvestment of dividends 89,421 554,410
------------ --------------
Total issued 1,938,674 13,944,111
Shares redeemed (3,119,347) (21,952,670)
------------ --------------
Net decrease (1,180,673) $ (8,008,559)
============ ==============
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 Year Dollar
Ended November 30, 1999 Shares Amount
Shares sold 402,844 $ 2,853,452
Shares issued to shareholders in
reinvestment of dividends 12,809 78,649
------------ --------------
Total issued 415,653 2,932,101
Automatic conversion of shares (10,676) (80,656)
Shares redeemed (353,661) (2,467,177)
------------ --------------
Net increase 51,316 $ 384,268
============ ==============
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 C Shares for the Year Dollar
Ended November 30, 1999 Shares Amount
Shares sold 232,159 $ 1,743,491
Shares issued to shareholders in
reinvestment of dividends 4,582 28,132
------------ --------------
Total issued 236,741 1,771,623
Shares redeemed (319,862) (2,356,736)
------------ --------------
Net decrease (83,121) $ (585,113)
=========== ==============
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 D Shares for the Year Dollar
Ended November 30, 1999 Shares Amount
Shares sold 81,004 $ 592,970
Shares issued to shareholders in
reinvestment of dividends 5,001 30,957
Automatic conversion of shares 10,532 80,656
------------ --------------
Total issued 96,537 704,583
Shares redeemed (101,523) (720,264)
------------ --------------
Net decrease (4,986) $ (15,681)
============ ==============
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
============ ==============
5. Commitments:
At November 30, 1999, the Fund had entered into foreign exchange
contracts under which it agreed to purchase and sell various foreign
currencies with approximate values of $519,000 and $1,673,000,
respectively.
6. Capital Loss Carryforward:
At November 30, 1999, the Fund had a net capital loss carryforward
of approximately $51,632,000, of which $1,115,000 expires in 2003,
$17,293,000 expires in 2005, $25,147,000 expires in 2006 and
$8,077,000 expires in 2007. This amount will be available to offset
like amounts of any future taxable gains.
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1999
<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, 1999, 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 five-year
period then ended. 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, 1999, 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, 1999,
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 13, 2000
<TABLE>
IMPORTANT TAX INFORMATION (unaudited)
<CAPTION>
The following information summarizes all per share distributions
paid by Merrill Lynch Emerging Tigers Fund, Inc. during its taxable
yearended November 30, 1999:
Domestic
Record Payable Non-Qualifying Foreign Total
Date Date Ordinary Income Source Income Ordinary Income
<S> <C> <C> <C> <C> <C>
Class A Shares 12/18/1998 12/29/1998 $.106045 $.070407 $.176452
Class B Shares 12/18/1998 12/29/1998 $.064541 $.042851 $.107392
Class C Shares 12/18/1998 12/29/1998 $.056025 $.037196 $.093221
Class D Shares 12/18/1998 12/29/1998 $.095926 $.063688 $.159614
Additionally, there were no capital gain distributions paid by the Fund during the year.
Please retain this information for your records.
</TABLE>
Merrill Lynch Emerging Tigers Fund, Inc., November 30, 1999
PORTFOLIO INFORMATION (unaudited)
As of November 30, 1999
Percent of
Ten Largest Holdings Net Assets
China Telecom (Hong Kong) Limited 7.1%
Legend Holdings Limited 6.7
DBS Group Holdings Limited 4.1
Singapore Press Holdings Ltd. 3.8
Singapore Airlines Limited 3.1
NIIT Limited* 2.8
Philippine Long Distance Telephone Company
(ADR) 2.5
Advanced Info Service Public Company
Limited 'Foreign' 2.3
Malayan Banking Berhad 2.1
Rothmans of Pall Mall (Malaysia) Berhad 2.1
[FN]
*Includes combined holdings.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Donald Cecil, 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
Robert C. Doll, Senior Vice President
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
