<PAGE> 1
THE EMERGING MARKETS
FLOATING RATE FUND INC.
INTERIM REPORT
NOVEMBER 30, 1995
<PAGE> 2
THE EMERGING MARKETS FLOATING RATE FUND INC.
January 29, 1996
Dear Shareholders:
During the quarter ended November 30, 1995, the net asset value for The Emerging
Markets Floating Rate Fund Inc. (the "Fund") increased from $12.69 per share at
August 31, 1995 to $12.98 per share at November 30, 1995. Dividends of $0.3975
per share were declared during the quarter. Assuming that these dividends were
reinvested in additional shares of the Fund, the total investment return, based
on net asset value per share, for the quarter ended November 30, 1995 was 5.51%,
compared to a 6.19% return for the Salomon Brothers Brady Bond Index, which we
use as a measure of the return of the overall market for emerging market debt.
At November 30, 1995, the Fund's stock traded at $12.75 per share, unchanged
from August 31, 1995, representing an approximate 2% discount to the underlying
net asset value per share of $12.98. As you know, the Fund's objective is to
achieve high current income by investing primarily in floating rate debt
securities of emerging markets and corporate issuers.
MARKET OVERVIEW
The fiscal quarter ended November 30, 1995 saw continued recovery in emerging
markets debt after the dismal first calendar quarter of 1995. The important
developments for the market during the Fund's most recent quarter included:
declining U.S. interest rates, successful financings by Argentina and Mexico,
continued Mexican peso volatility and continued economic and structural reform
progress in Brazil. The market, after its 6.19% return in the quarter ended
November 30, 1995, returned 7.40% in December.
Spreads for the Salomon Brothers Brady Bond Index above U.S. Treasuries narrowed
modestly from 1,076 basis points at the beginning of the quarter to 1,065 basis
points at November 30, 1995.
PORTFOLIO REVIEW
U.S. dollar-denominated bonds of the Republic of Brazil remain the largest
holding of the portfolio, totaling 15.0% of total investments. Brazilian Brady
Bonds were one of the top performing components of the Salomon Brothers Brady
Bond Index during the quarter, posting a return of 7.9%
The key to Brazil's economic and credit quality improvement during 1995 was the
government's successful monetary policy based on the enhanced credibility of its
new currency, the Real. Inflation is expected to total about 15% for 1995, down
from 1,094% in 1994. This dramatic reduction in the rate of inflation reflects
the commitment of the government to continued economic reform.
<PAGE> 3
THE EMERGING MARKETS FLOATING RATE FUND INC.
Going forward, Brazil's future performance is largely dependent upon fiscal
policy. Successful fiscal policy will include substantial reductions in
government expenditures and privatizations which will permit further reductions
in Brazil's debt load. We view the momentum of developments in Brazil as
positive and sustainable, and believe that Brazilian government debt offers
attractive returns.
Moroccan government loans continue as a core holding in the portfolio,
accounting for 11.8% of total investments. Moroccan debt lagged for much of the
year but rebounded 6.9% during the quarter. The country's economic output and
government finances were adversely impacted by a severe drought in 1995. We view
this situation as temporary and expect Morocco to remain a core holding in our
portfolio.
Obligations of the Republic of Argentina constitute 10.7% of total investments,
up from 9.0% at the beginning of the quarter. During the quarter, Argentine
Brady Bonds were the top performing component of the Salomon Brothers Brady Bond
Index, registering a gain of 11.1%. The most encouraging news from Argentina
during the quarter was the success of the government's tax moratorium which
raised an unexpectedly large $3.5 billion in revenue. We expect Argentina to
continue to provide positive returns to the portfolio.
During the quarter, the Fund increased its holdings in the government debt of
Poland. On November 19, 1995, Alexander Kwasniewski was elected President of the
Republic in the second round of voting. The election of the former communist was
largely anticipated by the market but caused some market uncertainty and
contributed to Poland's underperformance during the quarter. For the quarter,
Poland's bonds provided a 4.8% return.
We encourage you to read the financial statements that follow for further
details about the Fund's investments. A recorded update of developments
affecting emerging markets debt securities is available by calling (800)
421-4777. This number also includes specific information about the Fund, its
portfolio and its recent performance.
Cordially,
/s/ ALAN H. RAPPAPORT /s/ MICHAEL S. HYLAND
- ---------------------- ----------------------
Alan H. Rappaport Michael S. Hyland
Chairman of the Board President
<PAGE> 4
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
November 30, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) SOVEREIGN BONDS -- 70.90% (NOTE 2)
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 10.62%
$ 8,750 Republic of Argentina, FRB, 6.8125%, 3/31/05*................................... $ 5,714,843
-----------
BRAZIL -- 14.82%
1,867 Federal Republic of Brazil, C Bond, 8.00%, 4/15/14**............................ 993,969
1,250 Federal Republic of Brazil, EIB, 6.8125%, 4/15/06*.............................. 827,344
2,138 Federal Republic of Brazil, IDU, 6.6875%, 1/01/01*.............................. 1,822,219
8,000 Federal Republic of Brazil, DCB, 6.875%, 4/15/12*............................... 4,332,500
-----------
7,976,032
-----------
BULGARIA -- 5.47%
2,650 Republic of Bulgaria, Discount Bond, Tranche A, 6.75%, 7/28/24*................. 1,349,844
5,750 Republic of Bulgaria, FLIRB, Series A, 2.00%, 7/28/12*.......................... 1,595,625
-----------
2,945,469
-----------
COSTA RICA -- 3.89%
2,740 Costa Rica Series B, Interest Bond, 6.72656%, 5/21/05*.......................... 2,095,991
-----------
ECUADOR -- 6.32%
10,317 Republic of Ecuador, PDI Bond, 6.8125%, 2/28/15*,**............................. 3,404,455
-----------
HUNGARY -- 3.90%
2,300 National Bank of Hungary, 7.95%, 11/01/03....................................... 2,098,750
-----------
MEXICO -- 5.45%
2,000 United Mexican States, Discount Bonds, Series A, 6.76563%, 12/31/19
(including 3,076,000 rights)*................................................. 1,380,000
2,250 United Mexican States, Discount Bonds, Series C, 6.60938%, 12/31/19
(including 3,461,000 rights)*................................................. 1,552,500
-----------
2,932,500
-----------
PANAMA -- 3.07%
2,000 Republic of Panama, FRN, 6.75%, 5/10/02*........................................ 1,655,000
-----------
PHILIPPINES -- 4.78%
3,000 Republic of the Philippines, DCB, Series B, 6.875%, 12/01/09*................... 2,572,500
-----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 1
<PAGE> 5
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (continued)
November 30, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) SOVEREIGN BONDS (CONTINUED) (NOTE 2)
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
POLAND -- 7.62%
$ 2,000 Republic of Poland, Discount Bonds, 6.875%, 10/27/24*........................... $ 1,518,125
4,000 Republic of Poland, PDI Bonds, 3.75%, 10/27/14*................................. 2,582,500
-----------
4,100,625
-----------
URUGUAY -- 2.77%
2,000 Uruguay Debt Conversion Bonds, 6.75%, 2/18/07*.................................. 1,490,000
-----------
VENEZUELA -- 2.19%
2,500 Republic of Venezuela, FLIRB, Series A, 6.8125%, 3/31/07*....................... 1,178,125
-----------
TOTAL SOVEREIGN BONDS (cost $39,196,672)........................................ 38,164,290
-----------
CORPORATE BONDS -- 13.83%
------------------------------------------------------------------------------------------------------------
BASIC INDUSTRIES -- 3.53%
2,000 Grupo Industrial Durango, 9.25%, 11/18/96*,#.................................... 1,900,000
-----------
CONSUMER CYCLICALS -- 1.85%
1,000 Cole National Group Inc., 11.25%, 10/01/01...................................... 995,000
-----------
CONSUMER NON-CYCLICALS -- 3.61%
2,000 Empresa Distribuidora Sur S.A., 9.875%, 8/16/97*................................ 1,940,000
-----------
INDUSTRIAL/MANUFACTURING -- 1.58%
1,000 Venture Holdings Trust, 9.75%, 4/01/04.......................................... 850,000
-----------
MEDIA/TELECOMMUNICATIONS -- 1.41%
1,000 U.S. Banknote Corp., 11.625%, 8/01/02........................................... 760,000
-----------
TRANSPORTATION -- 1.85%
1,000 Petro PSC Properties, 12.50%, 6/01/02........................................... 997,500
-----------
TOTAL CORPORATE BONDS (cost $7,897,275)......................................... 7,442,500
-----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 2
<PAGE> 6
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (concluded)
November 30, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) LOAN PARTICIPATIONS -- 14.30% (NOTE 2)
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 1,556 Republic of Jamaica, Tranche A, 6.75%, 10/15/00*
(Chase Manhattan, New York)T.................................................. $ 1,400,000
8,000 Kingdom of Morocco, Tranche B, 6.75%, 1/01/04*
(Morgan Stanley Emerging Markets Inc, Merrill Lynch)T......................... 6,295,000
-----------
TOTAL LOAN PARTICIPATIONS (cost $7,723,846)..................................... 7,695,000
-----------
WARRANTS(A) -- .06%
------------------------------------------------------------------------------------------------------------
1,000 Warrants Petro PSC Properties (exercise price of $0, expiring on 7/1/97; exchangeable for
$55,380 principal amount of Notes or an equivalent number of shares)
(cost $35,535)................................................................ 32,000
-----------
TOTAL INVESTMENTS -- 99.09% (cost $54,853,328).................................. 53,333,790
-----------
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES -- .91%.......................... 490,689
-----------
NET ASSETS -- 100.0%
(equivalent to $12.98 per share on 4,147,134 common shares outstanding)....... $53,824,479
-----------
</TABLE>
- --------------------------------------------------------------------------------
* Rate shown reflects current rate on instrument with variable rate or
step coupon rates.
** Payment-in-kind security for which part of the interest earned is
capitalized as additional principal.
# Pursuant to Rule 144A under the Securities Act of 1933, this security
can only be sold to qualified institutional investors.
T Participation interests were acquired through the financial institutions
indicated parenthetically.
(a) Non-income producing security.
DCB -- Debt Conversion Bonds.
EIB -- Eligible Interest Bonds.
FLIRB -- Front Loaded Interest Reduction Bonds.
FRB -- Floating Rate Bonds.
FRN -- Floating Rate Notes.
IDU -- Interest Due and Unpaid.
PDI -- Past Due Interest.
See accompanying notes to financial statements.
PAGE 3
<PAGE> 7
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1995 (unaudited)
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $54,853,328)................................................... $53,333,790
Receivable for investments sold............................................................... 173,326
Interest receivable........................................................................... 902,940
Unamortized organization expenses............................................................. 73,512
Prepaid expenses.............................................................................. 5,258
-----------
Total assets.......................................................................... 54,488,826
-----------
LIABILITIES
Due to custodian.............................................................................. 517,731
Accrued management fee (Note 3)............................................................... 47,499
Accrued audit and tax return preparation fees................................................. 38,904
Accrued legal fee............................................................................. 23,289
Accrued printing and mailing fees............................................................. 19,377
Accrued custodian fee......................................................................... 10,873
Other accrued expenses........................................................................ 6,674
-----------
Total liabilities..................................................................... 664,347
-----------
NET ASSETS
Common Stock ($.001 par value, authorized 100,000,000 shares;
4,147,134 shares outstanding)............................................................... 4,147
Additional paid-in capital.................................................................... 57,445,100
Undistributed net investment income........................................................... 498,035
Accumulated net realized loss on investments.................................................. (2,603,265)
Net unrealized depreciation on investments.................................................... (1,519,538)
-----------
Net assets............................................................................ $53,824,479
-----------
NET ASSET VALUE PER SHARE ($53,824,479 / 4,147,134 shares).................................... $12.98
-----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 4
<PAGE> 8
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Nine Months Ended November 30, 1995 (unaudited)
<TABLE>
<S> <C> <C>
INCOME
Interest (includes discount accretion of $1,559,487)....................................... $ 5,814,657
EXPENSES
Management fee.................................................................. $424,312
Audit and tax services.......................................................... 42,190
Legal........................................................................... 36,165
Printing........................................................................ 33,151
Transfer agent.................................................................. 22,605
Directors' fees and expenses.................................................... 19,363
Amortization of deferred organization expenses.................................. 18,673
Custodian....................................................................... 16,560
Listing fee..................................................................... 14,800
Other........................................................................... 9,316 637,135
-------- -----------
Net investment income........................................................... 5,177,522
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net Realized Loss on Investments........................................................... (2,287,474)
Change in Net Unrealized Depreciation on Investments....................................... 6,390,987
-----------
Net realized loss and change in net unrealized depreciation on investments................. 4,103,513
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS................................................. $ 9,281,035
-----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 5
<PAGE> 9
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
NINE MONTHS
ENDED PERIOD ENDED
NOVEMBER 30, 1995 FEBRUARY 28,
(UNAUDITED) 1995(A)
- ------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income............................................. $ 5,177,522 $ 5,138,856
Net realized loss on investments.................................. (2,287,474) (315,791)
Change in net unrealized depreciation............................. 6,390,987 (7,910,525)
----------- -----------
Net increase (decrease) in net assets from operations............. 9,281,035 (3,087,460)
----------- -----------
DIVIDENDS
From net investment income........................................ (4,903,987) (4,914,356)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net proceeds from issuance of 4,140,000 shares.................... -- 57,349,228
----------- -----------
Total increase in net assets...................................... 4,377,048 49,347,412
NET ASSETS
Beginning of period............................................... 49,447,431 100,019
----------- -----------
End of period (includes undistributed net investment income of
$498,035 and $224,500, respectively)............................ $53,824,479 $49,447,431
----------- -----------
</TABLE>
- --------------------------------------------------------------------------------
(a) For the period March 25, 1994 (commencement of operations) through February
28, 1995.
See accompanying notes to financial statements.
PAGE 6
<PAGE> 10
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(unaudited)
NOTE 1. ORGANIZATION AND COMMON STOCK OFFERING
The Emerging Markets Floating Rate Fund Inc. (the "Fund") was incorporated in
Maryland on January 21, 1994 and is registered as a non-diversified, closed-end,
management investment company under the Investment Company Act of 1940, as
amended. The Fund commenced operations on March 25, 1994.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
(a) SECURITIES VALUATION. In valuing the Fund's assets, all securities for
which market quotations are readily available are valued (i) at the last sale
price prior to the time of determination if there were a sale on the date of
determination, (ii) at the mean between the last current bid and asked prices if
there were no sales price on such date and bid and asked quotations are
available, and (iii) at the bid price if there were no sales price on such date
and only bid quotations are available. Publicly traded foreign government debt
securities are typically traded internationally in the over-the-counter market,
and are valued at the mean between the last current bid and asked price as at
the close of business of that market. However, when the spread between bid and
asked price exceeds five percent of the par value of the security, the security
is valued at the bid price. Securities may also be valued by independent pricing
services which use prices provided by market-makers or estimates of market
values obtained from yield data relating to instruments or securities with
similar characteristics. Short-term investments having a maturity of 60 days or
less are valued at amortized cost which approximates market value. Securities
for which reliable quotations are not readily available and all other securities
and assets are valued at fair value as determined in good faith by, or under
procedures established by, the Board of Directors.
(b) INVESTMENT TRANSACTIONS. Investment transactions are recorded on the trade
date. Interest income is accrued on a daily basis. Market discount on securities
purchased is accreted on an effective yield basis over the life of the security.
The Fund uses the specific identification method for determining realized gain
or loss on sale of investments.
(c) FEDERAL INCOME TAXES. The Fund has complied and intends to continue to
comply with the requirements of the Internal Revenue Code of 1986, as amended,
applicable to regulated investment companies, and to distribute all of its
income and capital gains, if any, to its shareholders. Therefore, no federal
income tax or excise tax provision is required.
(d) DIVIDENDS AND DISTRIBUTIONS. The Fund declares and pays dividends to
shareholders monthly from net investment income. Net realized gains, if any, in
excess of loss carryovers
PAGE 7
<PAGE> 11
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
are expected to be distributed annually. Dividends and distributions to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions from net investment income and net realized gains are determined
in accordance with federal income tax regulations, which may differ from
generally accepted accounting principles. These differences are due primarily to
deferral of wash sales and post-October losses. Dividends and distributions
which exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.
(e) UNAMORTIZED ORGANIZATION EXPENSES. Organization expenses amounting to
$125,000 were incurred in connection with the organization of the Fund. These
expenses have been deferred and are being amortized ratably over a five-year
period from commencement of operations.
(f) REPURCHASE AGREEMENTS. When entering into repurchase agreements, it is the
Fund's policy to take possession, through its custodian, of the underlying
collateral and to monitor its value at the time the arrangement is entered into
and at all times during the term of the repurchase agreement to ensure that it
always equals or exceeds the repurchase price. In the event of default of the
obligation to repurchase, the Fund has the right to liquidate the collateral and
apply the proceeds in satisfaction of the obligation. Under certain
circumstances, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings.
NOTE 3. MANAGEMENT AND ADVISORY FEES AND OTHER TRANSACTIONS
The Fund entered into a management agreement with Advantage Advisers, Inc. (the
"Investment Manager"), a subsidiary of Oppenheimer, pursuant to which the
Investment Manager, among other things, supervises the Fund's investment program
and monitors the performance of the Fund's service providers.
The Investment Manager and the Fund entered into an investment advisory and
administration agreement with Salomon Brothers Asset Management Inc. (the
"Investment Adviser") pursuant to which the Investment Adviser provides
investment advisory and administrative services to the Fund. The Investment
Adviser is responsible for the management of the Fund's portfolio in accordance
with the Fund's investment objectives and policies and for making decisions to
buy, sell, or hold particular securities and is responsible for day-to-day
administration of the Fund.
The Fund pays the Investment Manager a monthly fee at an annual rate of 1.10% of
the Fund's average weekly net assets for its services, out of which the
Investment Manager pays
PAGE 8
<PAGE> 12
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
the Investment Adviser a monthly fee at an annual rate of .65% of the Fund's
average weekly net assets for its services.
At November 30, 1995, Oppenheimer and the Investment Adviser each owned 3,567
shares of the Fund.
Certain officers and/or directors of the Fund are also officers and/or directors
of the Investment Manager or the Investment Adviser.
The Fund pays each Director not affiliated with the Investment Manager or the
Investment Adviser a fee of $5,000 per year, a fee of $700 for attendance at
each in-person meeting and $100 for participation in each telephonic meeting and
reimbursement for travel and out-of-pocket expenses for each board and committee
meeting attended.
NOTE 4. PORTFOLIO ACTIVITY
Purchases and sales of investment securities, other than short-term investments,
for the nine months ended November 30, 1995, aggregated $29,839,146 and
$29,774,291, respectively. The federal income tax cost basis of the Fund's
investments at November 30, 1995 was substantially the same as the cost basis
for financial reporting. Gross unrealized appreciation and depreciation amounted
to $688,250 and $2,207,788, respectively, resulting in a net unrealized
depreciation for federal income tax purposes of $1,519,538. At February 28,
1995, the Fund had a net capital loss carryover of approximately $315,791 which
will be available through February 28, 2003 to offset future capital gains to
the extent provided by federal income tax regulations.
NOTE 5. LOAN PARTICIPATIONS
The Fund invests in fixed and floating rate loans arranged through private
negotiations between a foreign sovereign entity and one or more financial
institutions. The Fund's investment in any such loan may be in the form of a
participation in or an assignment of the loan.
In connection with purchasing loan participations, the Fund generally will have
no right to enforce compliance by the borrower with the terms of the loan
agreement relating to the loan, nor any rights of set-off against the borrower,
and the Fund may not benefit directly from any collateral supporting the loan in
which it has purchased the participation. As a result, the Fund will assume the
credit risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling the
participation, the Fund may be treated as a general creditor of the lender and
may not benefit from any set-off between the lender and the borrower.
PAGE 9
<PAGE> 13
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
NOTE 6. CREDIT AND MARKET RISK
The yields of emerging market debt obligations and high yield corporate debt
obligations reflect, among other things, perceived credit risk. The Fund's
investment in securities rated below investment grade typically involve risks
not associated with higher rated securities including, among others, overall
greater risk of timely and ultimate payment of interest and principal, greater
market price volatility and less liquid secondary market trading. The
consequences of political, social, economic or diplomatic changes may have
disruptive effects on the market prices of investments held by the Fund.
NOTE 7. EVENTS SUBSEQUENT TO NOVEMBER 30, 1995
On December 13, 1995, the Board of Directors of the Fund declared a common stock
dividend from net investment income of $0.2225 per share payable on December 29,
1995 to shareholders of record on December 26, 1995.
On January 2, 1996, the Board of Directors of the Fund declared a common stock
dividend from net investment income of $0.1325 per share payable on January 31,
1996 to shareholders of record on January 12, 1996.
PAGE 10
<PAGE> 14
THE EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
NINE MONTHS
ENDED PERIOD ENDED
NOVEMBER 30, 1995 FEBRUARY 28,
(UNAUDITED) 1995(A)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment income............................................. $ 1.25 $ 1.24
Net realized and unrealized gain (loss) on securities............. .99 (1.98)
------- --------
Total from investment operations.................................. 2.24 (.74)
Dividends from net investment income.............................. (1.18) (1.19)
Offering costs on issuance of common stock........................ -- (.17)
------- --------
Net increase (decrease) in net asset value........................ 1.06 (2.10)
Net asset value, beginning of period.............................. 11.92 14.02
------- --------
Net asset value, end of period.................................... $12.98 $11.92
======= ========
Per share market value, end of period............................. $12.75 $11.75
Total investment return(c)........................................ 19.31% (8.17%)(b)
Ratios/supplemental data:
Net assets, end of period (000)................................... $53,824 $ 49,447
Ratio of total expenses to average net assets..................... 1.64%(d) 1.73%(d)
Ratio of net investment income to average net assets.............. 13.33%(d) 10.00%(d)
Portfolio turnover rate........................................... 58.83% 60.84%
</TABLE>
- --------------------------------------------------------------------------------
(a) For the period March 25, 1994 (commencement of investment operations)
through February 28, 1995.
(b) Return calculated based on beginning of period price of $14.02 (initial
offering price of $15.00 less sales load of $0.98) and end of period market
value of $11.75 per share. This calculation is not annualized.
(c) Dividends are assumed, for purposes of this calculation, to be reinvested
at prices obtained under the Fund's dividend reinvestment plan. This
calculation is not annualized.
(d) Annualized.
See accompanying notes to financial statements.
PAGE 11
<PAGE> 15
THE EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------------------------------------------------------------
SELECTED QUARTERLY FINANCIAL INFORMATION
SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED):
<TABLE>
<CAPTION>
NET REALIZED GAIN
(LOSS) & CHANGE IN
NET UNREALIZED
NET INVESTMENT APPRECIATION
INCOME (DEPRECIATION)
------------------ ---------------------
QUARTERS ENDED(A) TOTAL PER SHARE TOTAL PER SHARE
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
May 31, 1994(b).................................................... $ 834 $ .20 $ (2,171) $ (.52)
August 31, 1994.................................................... 1,188 .29 2,380 .57
November 30, 1994.................................................. 1,433 .34 (1,396) (.33)
February 28, 1995.................................................. 1,684 .41 (7,039) (1.70)
May 31, 1995....................................................... 1,753 .42 2,874 .70
August 31, 1995.................................................... 1,721 .42 67 .01
November 30, 1995.................................................. 1,704 .41 1,163 .28
</TABLE>
- --------------------------------------------------------------------------------
(a) Totals expressed in thousands of dollars except per share amounts.
(b) For the period March 25, 1994 (commencement of investment operations)
through May 31, 1994.
See accompanying notes to financial statements.
PAGE 12
<PAGE> 16
THE EMERGING MARKETS FLOATING RATE FUND INC.
- -----------
DIRECTORS
CHARLES F. BARBER
Consultant; formerly Chairman,
ASARCO Incorporated
LESLIE H. GELB
President, The Council on
Foreign Relations
MICHAEL S. HYLAND
President;
President, Salomon Brothers
Asset Management Inc
ALAN H. RAPPAPORT
Chairman of the Board;
Executive Vice President,
Oppenheimer & Co., Inc.
RIORDAN ROETT
Professor and Director,
Latin American Studies Program,
Paul H. Nitze School of Advanced
International Studies,
Johns Hopkins University
JESWALD W. SALACUSE
Henry J. Braker Professor of Commercial
Law, and formerly Dean, The Fletcher
School of Law & Diplomacy
Tufts University
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OFFICERS
ALAN H. RAPPAPORT
Chairman of the Board
MICHAEL S. HYLAND
President
PETER WILBY
Executive Vice President
LAWRENCE H. KAPLAN
Executive Vice President
ALAN M. MANDEL
Treasurer
LAURIE A. PITTI
Assistant Treasurer
TANA E. TSELEPIS
Secretary
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THE EMERGING MARKETS
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FLOATING RATE FUND INC.
7 World Trade Center
New York, New York 10048
TELEPHONE
1-800-725-6666
INVESTMENT MANAGER
Advantage Advisers, Inc.
Oppenheimer Tower
World Financial Center
New York, New York 10281
INVESTMENT ADVISER
Salomon Brothers Asset Management Inc
7 World Trade Center
New York, New York 10048
CUSTODIAN
The Chase Manhattan Bank, N.A.
Four Metrotech Center
Brooklyn, New York 11245
DIVIDEND DISBURSING AND TRANSFER AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
LEGAL COUNSEL
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017
NEW YORK STOCK EXCHANGE SYMBOL
EFL
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<PAGE> 17
AMERICAN STOCK TRANSFER & TRUST COMPANY ---------------------
40 WALL STREET BULK RATE
NEW YORK, NEW YORK 10005 U.S. POSTAGE
PAID
STATEN ISLAND, NY
PERMIT NO.
169
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