<PAGE>
MORGAN STANLEY
INDIA INVESTMENT FUND, INC.
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Barton M. Biggs Samuel T. Reeves
CHAIRMAN OF THE BOARD DIRECTOR
Stefanie V. Chang
Michael F. Klein VICE PRESIDENT
PRESIDENT AND DIRECTOR
Harold J. Schaaff, Jr.
John Chu VICE PRESIDENT
DIRECTOR
Joseph P. Stadler
Gerald la Hausse de Louviere VICE PRESIDENT
DIRECTOR
Valerie Y. Lewis
Gerard E. Jones SECRETARY
DIRECTOR
Joanna M. Haigney
John A. Levin TREASURER
DIRECTOR
Belinda A. Brady
Fergus Reid ASSISTANT TREASURER
DIRECTOR
- --------------------------------------------------------------------------------
INVESTMENT ADVISER
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
- --------------------------------------------------------------------------------
ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
- --------------------------------------------------------------------------------
CUSTODIANS
Morgan Stanley Trust Company
One Pierrepont Plaza
Brooklyn, New York 11201
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
- --------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
(800) 278-4353
- --------------------------------------------------------------------------------
LEGAL COUNSEL
Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
- --------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
- --------------------------------------------------------------------------------
For additional Fund information, including the Fund's net asset value per share
and information regarding the investments comprising the Fund's portfolio,
please call 1-800-221-6726.
- --------------------------------------------------------------------------------
MORGAN STANLEY
INDIA INVESTMENT
FUND, INC.
- --------------------------------------------------------------------------------
FIRST QUARTER REPORT
MARCH 31, 1998
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
<PAGE>
LETTER TO SHAREHOLDERS
- ----------------------
For the three months ended March 31, 1998, Morgan Stanley India Investment Fund,
Inc. (the "Fund") had a total return based on net asset value per share, of
7.02% compared to 6.18% for the U.S. dollar adjusted Bombay Stock Exchange (BSE)
National Index (the "BSE National Index"). For the one year ended March 31,
1998, and for the period since the Fund's commencement of operations on February
25, 1994 through March 31, 1998, the Fund's total return, based on net asset
value per share, was 0.43% and -31.96%, respectively, compared with 5.35% and
- -33.35%, respectively, for the BSE National Index. On March 31, 1998, the
closing price of the Fund's shares on the New York Stock Exchange was $7 15/16,
representing a 16.0% discount to the Fund's net asset value per share.
A new coalition government, this time led by the BJP, has come to power on a
promise to provide a stable government and achieve economic turnaround through
furthering the reform process, particularly in the area of infrastructure
development. The initial statements of the Prime Minister and the Finance
Minister have been well received by businessmen and investors and has allayed,
for the moment, a number of misgivings that investors, both domestic and
foreign, had about the BJP prior to the formation of the coalition government.
While the focus is on the Budget for 1998-99 to be presented in May 1998, the
interim budget has revealed that the cyclical downturn in the economy has been
bigger than expectations and the fiscal deficit for March 1998 may end at
5.5%-6%, a good 100-150 basis points above expectations. In the short-term, the
Finance Minister would be challenged by the level of the fiscal deficit while
trying to boost government spending to lead the economy out of the slump.
However, there are already a few positive signs of a sustainable economic
turnaround. Credit growth for banks and financial institutions has grown by 16%
year-on-year in the second half of fiscal year 1998 and consumption of consumer
durables, such as cement, steel, polyesters and two wheelers, has picked up in
that half. The Reserve Bank of India, which had increased the bank rate by 200
points in January 1998 to counter the threat to the Indian Rupee in the foreign
exchange market, has since reverted to easier monetary policy by bringing back
the bank rate in two stages to 10%. But the pressure on interest rates is
expected to continue in the context of an increasing fiscal deficit.
The early statements of the new government have succeeded in improving
investors' confidence and the Indian stock market has risen almost 30% to-date
since its low in January 1998. This time around the rally has been more
widespread across a larger number of stocks, as against the beginning of the
year rallies of 1996 and 1997. It is significant to note that domestic investors
have stepped up their investment in equities, particularly in medium and small
sized companies as these now represent attractive valuations. It must also be
mentioned that the markets have registered a smart increase despite net outflows
in early April for foreign investors.
Current cheap stock prices have attracted a few hostile takeovers of companies,
and this in turn has led to speculative buying in several medium sized companies
on the expectation of further acquisitions. Multinational companies are looking
to increase their stake through open offers at prices higher than market. We
expect these trends to continue through 1998-99 and beyond.
Another interesting trend that we notice is that Indian corporates are
increasingly becoming more focused on their core competencies and selling out
divisions that do not fit the overall game plan of that corporate. This is
positive as it indicates that Indian management is getting conscious of equity
value and returns to shareholders and moving away from the trend to building
assets in the early nineties. While all these emerging trends do provide a
positive impetus, we believe that the market runs the risk of a bad monsoon
after ten successive good years, and a liquidity crunch should interest rates
move northward to support government borrowing in a high fiscal deficit
scenario.
The Fund continues to consolidate it's holdings and reduce the number of stocks
in the portfolio. We expect this process to continue in the coming year as
well, and expect to see a significant reduction in the number of scrips in the
portfolio.
The Fund remains fully invested and we are positioned to take advantage of any
short-term volatility in the markets.
The Fund's focus on non-index stocks is beginning to pay off now as the rally in
the market seems to be broadening out with the domestic investor base driv-
2
<PAGE>
ing this process. We expect this broadening of the market rally to continue to
encompass a larger number of companies.
Sincerely,
/s/ Michael F. Klein
Michael F. Klein
PRESIDENT AND DIRECTOR
/s/ Vinod Sethi
Vinod Sethi
PORTFOLIO MANAGER
April 1998
3
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY INDIA INVESTMENT FUND, INC.
INVESTMENT SUMMARY AS OF MARCH 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------
HISTORICAL TOTAL RETURN(%)
INFORMATION -------------------------------------------------------------------------------------
MARKET VALUE(1) NET ASSET VALUE (2) INDEX(3)
------------------------ ------------------------ -------------------------
AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
---------- ------ ---------- ------ ---------- ------
<S> <C> <C> <C> <C> <C> <C>
FISCAL YEAR TO DATE -5.22% -- 7.02% -- 6.18% --
ONE YEAR -18.59 -18.59% 0.43 0.43% 5.35 5.35%
SINCE INCEPTION* -42.85 -12.77 -31.96 -8.97 -33.35 -9.44
</TABLE>
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
[GRAPH]
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31:
THREE MONTHS
ENDED
MARCH 31,
1994* 1995 1996 1997 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value Per Share . . . . . $13.99 $8.91 $8.81 $8.83 $9.45
Market Value Per Share . . . . . . $11.25 $9.13 $9.50 $8.38 $7.94
Premium/(Discount). . . . . . . . . -19.6% 2.5% 7.8% -5.1% -16.0%
Capital Gains Distributions . . . . $ 0.17 -- -- -- --
Fund Total Return (2) . . . . . . . 0.72% -36.31% -1.12% 0.23% 7.02%
Index Total Return (3). . . . . . . -7.88% -31.53% -6.49% 6.43% 6.18%
</TABLE>
(1) Assumes dividends and distributions, if any, were reinvested.
(2) Total investment return based on net asset value per share reflects the
effects of changes in net asset value on the performance of the Fund during
each period, and assumes dividends and distributions, if any, were
reinvested. These percentages are not an indication of the performance of a
shareholder's investment in the Fund based on market value due to
differences between the market price of the stock and the net asset value
per share of the Fund.
(3) The Bombay Stock Exchange (BSE) National Index is a market capitalization
weighted index including the equity shares of 100 companies from the
"Specified" and the "Non-specified" list of the 5 major stock exchanges,
namely, Bombay, Calcutta, Delhi, Ahmedabad and Madras. Prior to fiscal year
1997, the Fund used the Bombay Stock Exchange Sensitive Index as its
benchmark for performance purposes. Since 1997, the Fund uses the Bombay
Stock Exchange National Index for the purpose of performance comparison as
this index more closely represents the current investment strategy of the
Fund.
* The Fund commenced operations on February 25, 1994.
4
<PAGE>
Morgan Stanley India Investment Fund, Inc.
Investment Summary as of March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
DIVERSIFICATION OF TOTAL INVESTMENTS
<TABLE>
[CHART]
<S> <C>
Fixed Income Securities 0.2%
Short-Term Investments 0.8%
Equity Securities 99.0%
</TABLE>
- --------------------------------------------------------------------------------
SECTORS
<TABLE>
[CHART]
<S> <C>
Other 12.0%
Transporation-Road & Rail 6.9%
Machinery & Engineering 4.5%
Health & Personal Care 10.1%
Financial Services 7.7%
Automoblies 15.4%
Banking1 5.0%
Broadcasting & Publishing 4.0%
Chemicals 4.5%
Electronic Components &
Instruments 10.0%
Energy Equipment & Services 19.9%
</TABLE>
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. Bharat Heavy Electricals Ltd. 18.8%
2. Infosys Technology Ltd. 8.9
3. Housing Development Finance Corp. Ltd. 7.6
4. Container Corp. of India Ltd. 6.9
5. State Bank of India Ltd. 4.2
6. Zee Telefilms Ltd. 3.4
7. Smithkline Beecham Pharmaceutical Ltd. 2.9
8. Punjab Tractors Ltd. 2.9
9. Hero Honda Ltd. 2.9
10. TVS Suzuki Ltd. 2.2
-----
60.7%
-----
-----
</TABLE>
5
<PAGE>
INVETMENTS (UNAUDITED)
- ----------
MARCH 31, 1998
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (99.4%)
(Unless otherwise noted)
- --------------------------------------------------------------------------------
<S> <C> <C>
APPLIANCES & HOUSEHOLD DURABLES (1.4%)
Bharat Pipes & Fittings Ltd. 150 U.S.$ --@
Blow Plast Ltd. 434,600 440
Phillips India Ltd. 103,550 385
Supreme Industries Ltd. 832,900 3,947
------------
4,772
------------
- --------------------------------------------------------------------------------
AUTOMOBILES (15.4%)
Apollo Tyres Ltd. 491,750 1,014
Autolite Ltd. 44,300 31
Bajaj Auto Ltd. 350 5
Bajaj Tempo Ltd. 4,031 22
Bajaj Tempo Ltd. (Rights) 851 3
Castrol (India) Ltd. 110,290 1,912
Ceat Ltd. 426,147 257
Denso India Ltd. 647,900 664
Denso India Ltd. (Rights) 129,580 --
Elgi Tyres & Tread Ltd. 273,400 2,076
Engine Valves Ltd. 185,700 823
Hero Honda Ltd. 435,991 9,643
LML Ltd. 1,200 4
Lumax Automatic Parts Industries Ltd. 441,200 604
Modi Rubber Ltd. 100 --@
Motherson Sumi Systems Ltd. 335,907 323
Motor Industries Co., Ltd. 23,127 3,044
MRF Ltd. 109,280 5,560
Patheja Bros Forgings and Stamp Ltd. 450,000 207
Patheja Forgings and Auto Ltd. 325,000 50
Premier Instruments Ltd. 245,987 501
Punjab Tractors Ltd. 560,670 9,647
Rane Brakes & Lining Ltd. 7,500 31
Rane Madras Ltd. 213,100 567
Rico Auto Industries Ltd. 221,000 436
S.K.F. Bearings Ltd. 52,356 1,840
Subros Auto Ltd. 159,395 315
Sundaram Brake Ltd. 2,850 7
Sundaram Fasteners Ltd. 481,000 4,505
Tata Engineering & Locomotive Ltd. 56,402 418
TVS Suzuki Ltd. 581,550 7,239
VST Tillers & Tractors Ltd. 173,000 130
------------
51,878
------------
- --------------------------------------------------------------------------------
BANKING (5.0%)
Federal Bank Ltd. 100 --@
HDFC Bank Ltd. 1,558,700 2,819
State Bank of India Ltd. 2,024,870 14,249
------------
17,068
------------
- --------------------------------------------------------------------------------
BEVERAGES & TOBACCO (2.1%)
ITC Ltd. 399,841 U.S.$ 7,227
McDowell & Co., Ltd. 300 --@
------------
7,227
------------
- --------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (4.0%)
Cosmo Films Ltd. 99,600 34
Navneet Publications Ltd. 233,100 454
New Delhi Television Ltd. 333,300 405
Tata Donnelley Ltd. 293,250 1,316
Zee Telefilms Ltd. 1,659,600 11,465
------------
13,674
------------
- --------------------------------------------------------------------------------
BUILDING MATERIALS & COMPONENTS (0.9%)
Associated Cement Co. Ltd. 36 2
Bell Ceramics Ltd. 113,550 14
Gujarat Sidhee Cement Ltd. 200 --@
ITW Signode India Ltd. 1,064,950 1,725
Madras Cements Ltd. 11,860 1,288
------------
3,029
------------
- --------------------------------------------------------------------------------
CHEMICALS (4.5%)
Ciba Specialty Chemicals (India) Ltd. 165,485 339
Colour Chem Ltd. 52,602 3,194
Hoechst Schering Agrevo Ltd. 374,880 6,790
ICI India Ltd. 484,400 2,452
Indian Organic Chemical Ltd. 284,950 43
Indian Petro Chemical Corp. Ltd. 200 --@
ITC Agrotech Co., Ltd. 100 --@
Jaysynth Dyechem Ltd. 318,500 74
Monsanto Chemicals of India 99,800 1,667
Reliance Industries Ltd. 48,152 210
Sudarshan Chemicals Ltd. 258,877 299
------------
15,068
------------
- --------------------------------------------------------------------------------
CONSTRUCTION & HOUSING (0.0%)
Hindustan Construction Co. 350 --@
------------
- --------------------------------------------------------------------------------
ELECTRICAL & ELECTRONICS (0.2%)
Asian Electronics Ltd. 211,600 550
------------
- --------------------------------------------------------------------------------
ELECTRONIC COMPONENTS & INSTRUMENTS (10.0%)
Datar Switchgear Ltd. 225,900 183
Fujitsu ICIM Ltd. 655,215 361
Infosys Technology Ltd. 649,600 30,054
Mastek Ltd. 171,400 634
Modi Xerox Ltd. 1,127,500 2,392
Rolta India Ltd. 5,000 3
S&S Power Switchgear Ltd. 46,100 20
Samtel Colour Ltd. 756,950 187
VHEL Industries Ltd. 100 --@
------------
33,834
------------
- --------------------------------------------------------------------------------
6
<PAGE>
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (19.9%)
Bharat Heavy Electricals Ltd. 7,018,700 U.S.$ 63,427
Crompton Greaves Ltd. 627,380 662
Jyoti Structure Ltd. 167,750 370
KEC International Ltd. 436,857 414
Kirloskar Oil Engine Ltd. 380,438 321
Modern Malleables Ltd. - New 325,000 30
Shiram Honda Power Equipment Ltd. 353,630 1,960
Uniflex Cables Ltd. 18,000 4
------------
67,188
------------
- --------------------------------------------------------------------------------
ENERGY SOURCES (0.0%)
Renewable Energy Ltd. 247,800 33
------------
- --------------------------------------------------------------------------------
FINANCIAL SERVICES (7.7%)
Canfin Homes Ltd. 922,050 346
Housing Development Finance Corp. Ltd. 317,382 25,540
ICICI Ltd. - New 980 2
Industrial Finance Corp. (India) Ltd. 1,500 1
UTI Master Gain 362,300 101
UTI MasterShares Ltd. 9,925 3
------------
25,993
------------
- --------------------------------------------------------------------------------
FOOD & HOUSEHOLD PRODUCTS (0.7%)
American Dry Fruits Ltd. 300 --@
Nestle India Ltd. 100,000 1,126
Smithkline Beecham Consumer Health Care Ltd. 102,170 1,144
Western Hatcheries Ltd. 237,933 146
------------
2,416
------------
- --------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER (0.3%)
Ballarpur Industries Ltd. 140,342 132
Paper Products Ltd. - New 299,900 486
Pudumjee Ltd. 169,700 180
Tamilnadu Newsprint and Paper Ltd. 385,000 300
------------
1,098
------------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE (10.1%)
Cheminor Drugs Ltd. 243,650 1,015
Cipla Ltd. 318,050 5,366
Clariant (India) Ltd. 67,000 282
E. Merck (India) Ltd. 406,275 2,550
Godrej Soaps Ltd. 523,850 590
Hindustan Lever Ltd. 292 12
Hoechst Marion Roussel India Ltd. 585,200 5,729
Indian Shaving Products Ltd. 400 7
Lakme Ltd. 535,680 2,696
Marico Industries Ltd. 283,200 1,864
Pfizer Ltd. 100 1
Searle (India) Ltd. 245,850 227
Smithkline Beecham Pharmaceutical Ltd. 572,195 9,846
Sun Pharmaceutical Industries Ltd. 574,700 3,430
TTK Biomed Ltd. 143,700 36
Unichem Labs Ltd. 162,700 469
------------
34,120
------------
- --------------------------------------------------------------------------------
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
INDUSTRIAL COMPONENTS (0.9%)
Asahi India Safety Glass Ltd. 94,100 U.S.$ 893
Carborundum Universal Ltd. 493,300 1,062
Chicago Pneumatic India Ltd. 324,940 1,018
------------
2,973
------------
- --------------------------------------------------------------------------------
LEISURE & TOURISM (0.0%)
Indian Hotels Co., Ltd. 50 1
ITC Hotels Ltd. 800 2
------------
3
------------
- --------------------------------------------------------------------------------
MACHINERY & ENGINEERING (4.5%)
Advani-Oerlikon Ltd. 450,027 309
Ahmednagar Forgings Ltd. 130,700 60
Baharat Earth Movers Ltd. 268,400 427
Elgi Equipments Ltd. 107,850 530
Esab India Ltd. 564,850 1,666
Graphite India Ltd. 271,200 169
Indian Seamless Metal Tubes Ltd. 30 --@
Indian Seamless Metal Tubes Ltd. - New 106,120 50
Kabra Extrusion Technik Ltd. 152,600 100
Kirloskar Cummins Ltd. 307,090 3,381
Lakshmi Machine Works Ltd. 18,778 1,093
Lakshmi Synthetic Machinery Ltd. 152,400 116
M.M. Forgings Ltd. 200 --@
Praj Industries Ltd. 221,600 224
Revathi-CP Equipment Ltd. 298,600 2,464
Thermax Ltd. 469,100 2,602
Wartsila Diesel Ltd. 391,500 1,880
------------
15,071
------------
- --------------------------------------------------------------------------------
METALS -- NON-FERROUS (0.1%)
Pennar Aluminum Co., Ltd. 1,632,800 207
------------
- --------------------------------------------------------------------------------
METALS -- STEEL (0.5%)
India Seamless Steel & Alloy Ltd. 278,500 18
Isibars Ltd. 500,000 172
Panchmahal Steels Ltd. 197,700 33
Shri Ishar Alloy Steels Ltd. 212,300 9
Steel Authority of India Ltd. 3,000,000 759
Steel Authority of India Ltd. GDR 150,000 544
Tata Iron & Steel Co., Ltd. 400 1
Uttam Galva Steels Ltd. 134,650 19
------------
1,555
------------
- --------------------------------------------------------------------------------
MISCELLANEOUS MATERIALS & COMMODITIES (0.8%)
Essel Packaging Ltd. 368,100 1,677
Flex Industries Ltd. 50 --@
Su-Raj Diamonds Ltd. 100 --@
Titan Industries Ltd. 651,785 946
------------
2,623
------------
- --------------------------------------------------------------------------------
7
<PAGE>
VALUE
SHARES (000)
- --------------------------------------------------------------------------------
MULTI-INDUSTRY (1.8%)
Birla VXL Ltd. 100 U.S.$ --@
Delta International 570,000 61
JK Corp Ltd. 30 --@
Larsen & Toubro Ltd. 1,295 8
Novartis India Ltd. 432,550 3,832
Rajapalayam Mills 17,100 1,126
Ramco Industries Ltd. 84,700 1,139
------------
6,166
------------
- --------------------------------------------------------------------------------
RECREATION, OTHER CONSUMER GOODS (0.1%)
Tube Investments of India Ltd. 283,316 272
Tube Investments of India Ltd. GDR 198,133 158
Vashishti Detergents Ltd. 44,967 57
------------
487
------------
- --------------------------------------------------------------------------------
RETAIL -- GENERAL (0.0%)
Timex Watches Ltd. 67,000 36
------------
- --------------------------------------------------------------------------------
TEXTILES & APPAREL (1.6%)
Bata India Ltd. 395,602 1,566
Coates of India Ltd. 238,150 708
Coates of Viyella India Ltd. 104,550 159
Coates of Viyella India Ltd. - New 300,000 456
Coates of Viyella India Ltd. (Rights) 30 --@
Cosmos Leather Exports Ltd. 325,000 7
G.T.N. Textiles Ltd. 210,200 160
Indo Rama Synthetics Ltd. 2,675 1
J.K. Synthetics Ltd. 1,491,958 100
Mahavir Spinning Mills Ltd. 491,000 615
Maral Overseas Ltd. 650,600 323
Raymond Ltd. 250 --@
Sanotgen Exports Ltd. 100 --@
Shree Rajasthan Syntex Ltd. 50 --@
SIV Industries Ltd. GDR 313,500 125
SRF Ltd. 665,119 318
SRF Ltd. (Rights) 416,808 --
Super Spinning Mills Ltd. 60,357 70
Vardhaman Polytex Ltd. 91,100 63
Vardhaman Spinning & General Mills Ltd. 373,500 581
Viral Syntex Ltd. 209,200 11
Woolworth India Ltd. 1,100 1
------------
5,264
------------
- --------------------------------------------------------------------------------
TRANSPORTATION -- ROAD & RAIL (6.9%)
Container Corp. of India Ltd. 2,185,600 23,236
------------
- --------------------------------------------------------------------------------
UTILITIES -- ELECTRICAL & GAS (0.0%)
Andhra Valley Power Supply Co., Ltd. 50 --@
Tata Hydro Electric Power Supply Co. Ltd. 50 --@
------------
--@
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost U.S.$340,882) 335,569
------------
- --------------------------------------------------------------------------------
FACE
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
FIXED INCOME SECURITIES (0.2%)
- --------------------------------------------------------------------------------
METALS -- STEEL (0.0%)
Tata SSL Ltd. - New
14.00%, 12/6/02 INR 14 U.S.$ 13
--------------
- --------------------------------------------------------------------------------
MISCELLANEOUS MATERIALS & COMMODITIES (0.2%)
Garware Plastics & Polyester Ltd.
16.00%, 5/1/05 277 535
--------------
- --------------------------------------------------------------------------------
TOTAL FIXED INCOME SECURITIES
(Cost U.S.$899) 548
--------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (0.1%)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.1%)
Chase Securities, Inc., 5.60%,
dated 3/31/98, due 4/1/98,
to be repurchased at U.S.$295,
collateralized by U.S.$300,
United States Treasury Notes,
6.375%, due 3/31/01, valued
at U.S.$306 (Cost U.S.$295) U.S.$ 295 295
--------------
- --------------------------------------------------------------------------------
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (0.7%)
Indian Rupee (Cost U.S.$2,522) INR 99,686 2,523
--------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (100.4%)
(Cost U.S.$344,598) 338,935
--------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.4)%
Other Assets U.S.$2,871
Liabilities (4,330) (1,459)
---------- --------------
- --------------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 35,707,092 issued and
outstanding U.S.$0.01 par value shares
(100,000,000 shares authorized) U.S.$337,476
------------
------------
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S.$ 9.45
------------
------------
- --------------------------------------------------------------------------------
</TABLE>
@ -- Value is less than U.S.$500.
GDR -- Global Depositary Receipt
INR -- Indian Rupee
8
