<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
March 27, 2000
Dear Shareholder:
We are pleased to provide this annual report for The Emerging Markets Floating
Rate Fund Inc. ('Fund') as of February 29, 2000. Included are a market
commentary, a schedule of the Fund's investments, and financial statements for
the year ended February 29, 2000.
The net asset value of the Fund increased from $10.21 per share on February 26,
1999 to $12.08 on February 29, 2000. Dividends from net investment income
totaling $1.59 were paid during the 12-month period. Assuming the reinvestment
of dividends, the Fund returned 36.53% based on the net asset value for the year
ended February 29, 2000. In comparison, the JP Morgan Emerging Markets Bond
Index Plus ('EMBI+')1 returned 34.57% for the same period.
EMERGING MARKETS DEBT
During the fiscal year ended February 29, 2000, the emerging debt market
performed very well, particularly in a difficult fixed-income period. The 34.57%
return of the EMBI+ compares very favorably with the 1.16% return of the Salomon
Smith Barney Broad Investment Grade Bond Index2 over the same time period. The
fiscal year opened in the aftermath of the Brazilian devaluation, which had put
strong downward pressure on the entire market in January 1999. When Brazil
responded to the devaluation with a comprehensive program of fiscal and monetary
reforms, the market rallied. Overall market performance for the fiscal year was
dominated by returns from a handful of countries, including Russia, Brazil and
Venezuela. Spreads in the market narrowed from 1,330 basis points over
Treasuries at the beginning of the fiscal year to 816 basis points at year-end.
The recovery in the emerging bond markets in 1999 was driven by a variety of
factors; some related to improvements in fundamental creditworthiness and others
related to technical factors. Fundamentally, sovereign credit quality was
positively impacted by rising commodity prices, particularly oil prices. Oil
producers were among the best performing countries in the emerging markets in
1999. Credit quality in emerging markets also improved with the economic rebound
in Asia and evidence of economic recovery in Latin America, especially in
Argentina and Brazil. The presidential election cycle in a number of Latin
American countries provided further evidence of improved credit quality.
Argentina held its regularly scheduled presidential election in 1999, with the
opposition candidate winning. Upcoming elections in Russia, Mexico and Peru are
likely to continue this trend of fair and open elections which encourages wider
investor participation in the asset class.
The improvement in credit fundamentals attracted new capital flows into emerging
markets. Portfolio flows improved throughout the fiscal year, and have continued
in 2000 as Mexico's upgrade to investment grade status attracted a broader group
of investors to the asset class. Foreign direct investment has also rebounded
strongly in Latin America, aiding the overall investment environment.
- ---------
1 The EMBI+ is a total return index that tracks the traded market for U.S.
dollar-denominated Brady and other similar sovereign restructured bonds traded
in the emerging markets.
2 The Salomon Smith Barney Broad Investment Grade (BIG) Bond Index includes
institutionally traded U.S. Treasury Bonds, government-sponsored bonds (U.S.
Agency and supranational), mortgage-backed securities and corporate
securities.
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
Return volatilities for emerging markets debt declined over year-earlier levels.
The decline in volatility is a function of reduced leverage in the market,
coupled with expanded investor interest in the asset class. Twelve-month
volatility for emerging markets debt averaged approximately 10%, dramatically
below the 15% long-term historical level of Index.
For the year ended February 29, 2000, outperformers in the emerging markets
included Russia, Brazil and Venezuela. The remaining EMBI+ countries hurt the
overall return.
On February 29, 2000, the top country allocations (as a percentage of total
investments) for the Fund were as follows:
<TABLE>
<S> <C> <C> <C>
Venezuela............................. 21.3% Ivory Coast........................... 5.5%
Russia................................ 6.7 Morocco............................... 9.9
Croatia............................... 5.7 Peru.................................. 5.9
Brazil................................ 17.9 Algeria............................... 9.1
Bulgaria.............................. 6.6 Argentina............................. 5.9
</TABLE>
The following is a brief description of each sector's highlights over the past
year:
LATIN AMERICA
The key developments in Latin America during the Fund's fiscal year included
Brazil's recovery from the after-effects of its devaluation, Venezuela's
continued improvement in credit quality, successful financings by a number of
countries and Ecuador's default on its Brady bond issue.
Financing Trends. Latin American countries were large debt issuers during the
year ended February 29, 2000. Argentina, Brazil and Mexico were all large
issuers during 1999 as they met renewed market interest with a combination of
new financing and refinancing of existing issues. The volume of financing for
the three Latin countries was remarkably similar in 1999 and 1998. Each year had
a quarter of relatively low issuance, the last quarter of 1998 and the first
quarter of 1999. The pace of financing in the first two months of 2000 is
running substantially ahead of the overall level for 1999.
Brazil. As mentioned previously, the most notable event to occur in Brazil
during the period was the recovery from the effects of the devaluation of the
country's local currency, the real, in January 1999. The devaluation caused
spillover throughout Latin America, but the deterioration in market sentiment
was short-lived. Shortly after the devaluation, the government made significant
progress in fiscal reform by obtaining the long awaited social security reform
and CPMF (retired civil servant contribution rate increase) approvals. These
developments, in addition to the appointment of a highly respected Central Bank
head and the potential of a revised program with the International Monetary Fund
('IMF'), stabilized Brazilian markets. Brazil consistently surprised the market
during the Fund's fiscal year with positive fiscal and monetary news. The
currency stabilized, interest rates were reduced and economic expansion has
resumed. Brazil returned 46.88% over the year ended February 29, 2000.
Venezuela. Venezuela's Constituent Assembly completed the draft of the new
Constitution during the Fund's fiscal year. The Constitution calls for national
elections that are scheduled for May 28, 2000. We expect the new Constitution to
be ratified by the voters and President Chavez to win re-election. Oil price
strength improved Venezuela's credit quality throughout 1999. Venezuela returned
40.21% during the Fund's fiscal year. We continue to overweight Venezuela for
several reasons: Venezuela's financing needs in 2000 are relatively limited; oil
prices remain substantially above budgeted levels; and Venezuelan spreads are at
particularly wide levels, versus other similarly rated countries.
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
Ecuador. Ecuador had a few noteworthy negative developments during the Fund's
fiscal year. In October, the Ecuadorian government failed to make a scheduled
payment on its Eurobonds, adding this default to its August default on Brady
bonds. The participants in the ultimate resolution of these defaults include the
administration and congress in Ecuador (controlled by opposition parties), the
IMF and the bondholders. Each of these groups has different goals and timetables
that must be resolved before Ecuador can restructure its debt. We have not seen
any evidence to indicate that the government has come up with a coordinated
strategy for dealing with the default.
MIDDLE EAST/AFRICA
The primary credits in the region experienced varied economic results during the
year ended February 29, 2000. Algeria benefited from rising oil and gas prices
and renewed political stability. New elected president Abdelaziz Bouteflika has
been very effective in reducing the level of political violence in the country.
Rising oil prices have substantially improved the country's budget balance.
Moroccan King Hassan II died after 38 years on the throne and has been replaced
by his eldest son, King Mohammed VI. We expect the policies that have made
Morocco a steadily improving credit will be continued by the new King. In
another important development in Morocco, a cellular telephone license has been
awarded to Telefonica for a price of $1.1 billion and a commitment to spend an
additional $700 million developing the network. The proceeds from this sale will
be used to fund a variety of government investments in Morocco.
During the final week of calendar year 1999, the president of the Ivory Coast
was removed in a military coup. General Guei has assumed the presidency on an
interim basis and named an interim cabinet to serve until presidential elections
in June. While any coup is a destabilizing event, there are some potential
positives which may develop. Corruption was a major problem with the deposed
administration, and General Guei has pledged to address this issue. Failure to
address the corruption problem was a major reason for suspension of recent talks
with the IMF. In addition, an early favorite for president in the June elections
is a former deputy director of the IMF. While the coup has had a very negative
immediate impact on Ivory Coast debt, there could be some longer term benefits.
It is too early to assess the long run impact of the coup. Largely in response
to the coup, Ivory Coast debt declined over 21% during the Fund's fiscal year,
making it the worst performer in the emerging debt universe.
EASTERN EUROPE
Eastern European returns were dominated by developments in Russia. A variety of
important fundamental developments occurred in Russia during the year:
The lower house of the Duma passed the 2000 budget that emphasizes
increased tax collection and deficit reduction.
Duma elections in December 1999 reduced the influence of the Communist
party and made the moderate bloc the largest faction in Congress.
The IMF engaged in an active dialogue with the Russian government which
encouraged the Russians and the London Club. (The London Club is the
official group of creditors lending to emerging market governments.)
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
The Russian government reached an agreement with the London Club on
restructuring Soviet-era debt. This agreement helps clarify Russia's debt
burden and increases the likelihood that Russia can return to the market
for financing in the next 12-18 months.
In a development with the greatest potential long-range implications,
President Yeltsin resigned and appointed Prime Minister Putin acting
President. This step paved the way for presidential elections in March
2000. Acting President Putin is the overwhelming favorite. Putin was
elected President on the first ballot of the March 26, 2000 election.
Russian debt returned 216% during the Fund's fiscal year.
The Fund has concluded a successful fiscal year. The outlook for emerging
markets debt remains very strong with spreads at approximately 800 basis points
over Treasuries. Improving credit fundamentals and political stability have
created an attractive environment for investments in emerging markets debt.
* * *
In a continuing effort to provide timely information concerning The Emerging
Markets Floating Rate Fund Inc., shareholders may call 1-888-777-0102 (toll
free), Monday through Friday from 8:00 a.m. to 6:00 p.m. EST, for the Fund's
current net asset value, market price and other information regarding the Fund's
portfolio holdings and allocations. For information concerning your Emerging
Markets Floating Rate Fund stock account, please call American Stock Transfer &
Trust Company at 1-800-937-5449 (1-718-921-8200 if you are calling from within
New York City).
We appreciate the confidence you have demonstrated in the past and hope to
continue to serve you in the future years.
Sincerely,
<TABLE>
<S> <C>
William D. Cvengros Heath B. McLendon
William D. Cvengros Heath B. McLendon
Co-Chairman of the Board Co-Chairman of the Board
Peter J. Wilby Thomas K. Flanagan
Peter J. Wilby Thomas K. Flanagan
Executive Vice President Executive Vice President
</TABLE>
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
SCHEDULE OF INVESTMENTS
February 29, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
<S> <C> <C>
- ---------------------------------------------------------------------------------------------
SOVEREIGN BONDS -- 80.9%
ARGENTINA -- 5.9%
Republic of Argentina:
$ 900,000 11.750% due 4/7/09......................................... $ 908,100
1,342,000 FRB, Series L, 6.8125% due 3/31/05 (a)..................... 1,243,028
-----------
2,151,128
-----------
BRAZIL -- 17.9%
Federal Republic of Brazil:
3,924,750 MYDFA, 6.8125% due 9/15/07 (a)(b).......................... 3,262,448
3,900,000 NMB, Series L, 7.000% due 4/15/09 (a)...................... 3,217,500
-----------
6,479,948
-----------
BULGARIA -- 6.6%
Republic of Bulgaria:
300,000 FLIRB, Series A, 2.750% due 7/28/12 (a).................... 225,000
2,600,000 IAB, 7.0625% due 7/28/11 (a)............................... 2,148,250
-----------
2,373,250
-----------
COLOMBIA -- 5.4%
Republic of Colombia:
1,700,000 10.875% due 3/9/04......................................... 1,700,000
350,000 8.375% due 2/15/27......................................... 254,625
-----------
1,954,625
-----------
CROATIA -- 5.7%
2,195,455 Republic of Croatia, FRB, Series A, 7.0625% due 7/31/10 (a). 2,050,006
-----------
IVORY COAST -- 5.5%
10,400,000 Republic of Ivory Coast, FLIRB, 2.000% due 3/29/18 (a)...... 1,976,000
-----------
PERU -- 5.9%
3,300,000 Republic of Peru, FLIRB, 3.750% due 3/7/17 (a).............. 2,117,115
-----------
RUSSIA -- 6.7%
3,100,000 Russia, Ministry of Finance, 12.750% due 6/24/28............ 2,421,875
-----------
VENEZUELA -- 21.3%
Republic of Venezuela:
1,333,335 DCB, Series DL, 7.000% due 12/18/07 (a).................... 1,113,335
7,321,380 FLIRB, Series A, 6.875% due 3/31/07 (a).................... 6,138,523
535,710 FLIRB, Series B, 6.875% due 3/31/07 (a).................... 449,160
-----------
7,701,018
-----------
TOTAL SOVEREIGN BONDS (Cost -- $26,706,980)................ 29,224,965
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 5
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
SCHEDULE OF INVESTMENTS (continued)
February 29, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
LOAN PARTICIPATIONS(c) -- 19.1%
$ 3,764,708 Kingdom of Morocco, Tranche B, 6.84375% due 1/1/04
(Morgan Stanley Emerging Markets Inc, Merrill Lynch) (a)... $ 3,590,590
The People's Democratic Republic of Algeria (Chase
Manhattan):
800,000 Tranche 1, 6.8125% due 9/4/06 (a).......................... 628,000
3,600,000 Tranche 3, 6.8125% due 3/4/10 (a).......................... 2,664,000
-----------
TOTAL LOAN PARTICIPATIONS (Cost -- $6,197,862)............. 6,882,590
-----------
TOTAL INVESTMENTS -- 100% (Cost -- $32,904,842*).......... $36,107,555
-----------
-----------
- ---------------------------------------------------------------------------------------------
</TABLE>
(a) Rate shown reflects current rate on instrument with variable rate or step
coupon rates.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers.
(c) Participation interests were acquired through the financial institutions
indicated parenthetically.
* Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviations used in this schedule:
DCB -- Debt Conversion Bond.
FLIRB -- Front Loaded Interest Reduction Bond.
FRB -- Floating Rate Bond.
IAB -- Interest in Arrears Bond.
NMB -- New Money Bond.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 6
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
February 29, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost -- $32,904,842).............. $36,107,555
Cash..................................................... 25,643
Receivable for securities sold........................... 14,335,472
Interest receivable...................................... 1,105,583
-----------
TOTAL ASSETS............................................. 51,574,253
-----------
LIABILITIES:
Management fees payable.................................. 44,254
Accrued expenses......................................... 124,699
-----------
TOTAL LIABILITIES........................................ 168,953
-----------
TOTAL NET ASSETS......................................... $51,405,300
-----------
-----------
NET ASSETS:
Common stock ($0.001 par value, authorized 100,000,000
shares; 4,255,362 shares outstanding)................... $ 4,255
Additional paid-in capital............................... 58,885,358
Undistributed net investment income...................... 48,348
Accumulated net realized loss from security
transactions............................................ (10,735,374)
Net unrealized appreciation of investments............... 3,202,713
-----------
TOTAL NET ASSETS......................................... $51,405,300
-----------
-----------
NET ASSET VALUE, PER SHARE ($51,405,300 [div] 4,255,362
shares).................................................... $12.08
------
------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 7
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
STATEMENT OF OPERATIONS
For the Year Ended February 29, 2000
<TABLE>
<S> <C>
INCOME:
Interest................................................. $ 7,379,819
-----------
EXPENSES:
Management fees (Note 2)................................. 521,036
Audit fees............................................... 58,517
Shareholder reporting fees............................... 31,354
Directors' fees.......................................... 30,870
Transfer agent fees...................................... 28,207
Registration fees........................................ 15,824
Amortization of deferred organization costs (Note 1)..... 1,525
Other.................................................... 29,224
-----------
TOTAL EXPENSES........................................... 716,557
-----------
NET INVESTMENT INCOME....................................... 6,663,262
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Net Realized Loss From Security Transactions (excluding
short-term securities):
Proceeds from sales................................... 77,312,979
Cost of securities sold............................... 80,529,865
-----------
NET REALIZED LOSS........................................ (3,216,886)
-----------
Change in Net Unrealized Appreciation (Depreciation) of
Investments:
Beginning of year..................................... (8,007,989)
End of year........................................... 3,202,713
-----------
INCREASE IN NET UNREALIZED APPRECIATION.................. 11,210,702
-----------
NET GAIN ON INVESTMENTS..................................... 7,993,816
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $14,657,078
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 8
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended February 29, 2000
and the Year Ended February 26, 1999
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
- ----------------------------------------------------------------------------------------
OPERATIONS:
Net investment income.................................... $ 6,663,262 $ 6,816,423
Net realized loss........................................ (3,216,886) (7,514,243)
Increase in net unrealized appreciation (depreciation)... 11,210,702 (13,876,863)
----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS........ 14,657,078 (14,574,683)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................... (6,746,505) (6,684,832)
Net realized gains....................................... -- (1,170,913)
----------- ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS............................................ (6,746,505) (7,855,745)
----------- ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued in reinvestment of dividends
(28,847 and 38,528 shares issued, respectively)......... 332,230 450,844
----------- ------------
INCREASE (DECREASE) IN NET ASSETS........................... 8,242,803 (21,979,584)
NET ASSETS:
Beginning of year........................................ 43,162,497 65,142,081
----------- ------------
END OF YEAR (includes undistributed net investment income
of $48,348 and $131,591, respectively)................... $51,405,300 $ 43,162,497
----------- ------------
----------- ------------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 9
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Emerging Markets Floating Rate Fund Inc. ('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. The Fund seeks to
maintain a high level of current income by investing primarily in a portfolio of
floating rate debt securities of emerging market sovereign and corporate
issuers. As a secondary objective, the Fund seeks capital appreciation.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles
('GAAP'). The preparation of financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results may differ
from those estimates.
(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 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 AND INVESTMENT INCOME. 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, or
substantially all, of its income and capital gains, if any, to its shareholders.
Therefore, no federal income tax or excise tax provision is required.
PAGE 10
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
NOTES TO FINANCIAL STATEMENTS (continued)
(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 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 GAAP. These 'book/tax' differences are either considered temporary
or permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their federal
tax basis treatment; temporary differences do not require reclassifications.
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.
(e) DEFERRED ORGANIZATION COSTS. Organization costs amounting to $115,541 were
incurred in connection with the organization of the Fund. These costs have been
deferred and amortized ratably over a five-year period from commencement of
operations. The remaining unamortized organization costs of $1,525 were fully
expensed on the first day of the Fund's current fiscal year.
(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 during the term of the repurchase agreement to ensure that it 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.
(g) YEAR END TAX RECLASSIFICATIONS. The character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from GAAP.
NOTE 2. MANAGEMENT AND ADVISORY FEES AND OTHER TRANSACTIONS
The Fund has entered into a management agreement with PIMCO Advisors L.P.
('Investment Manager'), 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 management agreement was transferred to the
Investment Manager from Value Advisors LLC, a subsidiary of the Investment
Manager, on November 2, 1999.
PAGE 11
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
NOTES TO FINANCIAL STATEMENTS (continued)
The Investment Manager and the Fund have entered into an investment advisory and
administration agreement with Salomon Brothers Asset Management Inc ('Investment
Adviser'), a wholly-owned subsidiary of Salomon Smith Barney Holdings Inc.
('SSBH'), pursuant to which the Investment Adviser provides investment advisory
and administrative services to the Fund. The Investment Adviser is responsible
on a day-to-day basis 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 the Investment Adviser a monthly fee at an annual rate
of 0.65% of the Fund's average weekly net assets for its services.
The Investment Adviser has delegated certain administrative responsibilities to
SSB Citi Fund Management LLC ('SSBC'), an affiliate of the Investment Adviser
pursuant to a Sub-Administration Agreement between the Investment Adviser and
SSBC.
The management agreement, the investment advisory agreement and administration
agreement were most recently approved by stockholders of the Fund at a special
meeting of stockholders held on February 24, 2000. Approval of the agreements
was necessary due to the acquisition by Allianz of America, Inc. of
approximately 70% of the outstanding partnership interests in the Investment
Manager.
At February 29, 2000, the Investment Adviser owned 4,230 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.
NOTE 3. PORTFOLIO ACTIVITY AND FEDERAL INCOME TAX STATUS
For the year ended February 29, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
<TABLE>
<S> <C>
Purchases................................................... $74,659,416
-----------
-----------
Sales....................................................... $77,312,979
-----------
-----------
</TABLE>
At February 29, 2000, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation............................... $ 4,183,103
Gross unrealized depreciation............................... (980,390)
-----------
Net unrealized appreciation................................. $ 3,202,713
-----------
-----------
</TABLE>
PAGE 12
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 4. 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 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. The Fund
may have difficulty disposing of participations because the market for such
instruments is not highly liquid.
At February 29, 2000, the Fund held loan participations with a total cost of
$6,197,862.
NOTE 5. CREDIT AND MARKET RISK
The yields on 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. At
February 29, 2000, the Fund has a concentration of credit risk in sovereign debt
of emerging market countries.
NOTE 6. DIVIDENDS SUBSEQUENT TO FEBRUARY 29, 2000
Subsequent to February 29, 2000, the Board of Directors of the Fund declared
dividends of $0.1325 per common share payable March 31, 2000 and April 28, 2000
to shareholders of record on March 14, 2000 and April 18, 2000, respectively.
NOTE 7. CAPITAL LOSS CARRYFORWARD
At February 29, 2000, the Fund had, for Federal income tax purposes,
approximately $10,735,000 of capital loss carryforwards available to offset
future capital gains. To the extent that these capital carryforward losses are
used to offset capital gains, it is probable that the gains so offset will not
be distributed.
The amount and expiration of the carryforwards are indicated below. Expiration
occurs on February 28 of the year indicated:
<TABLE>
<CAPTION>
2007 2008 TOTAL
---- ---- -----
<S> <C> <C> <C>
Carryforward Amounts........................................ $6,104,000 $4,631,000 $10,735,000
</TABLE>
PAGE 13
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
FINANCIAL HIGHLIGHTS
Data for a share of common stock outstanding throughout each year shown below:
<TABLE>
<CAPTION>
FEB. 29, FEB. 26, FEB. 27, FEB. 28, FEB. 29,
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR............. $ 10.21 $ 15.55 $ 16.71 $ 13.66 $ 11.92
------- -------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income......................... 1.57 1.62 1.51 1.56 1.66
Net realized and unrealized gain (loss)....... 1.89 (5.09) 0.07 3.10 1.75
------- -------- ------- ------- -------
Total Income (Loss) From Operations............ 3.46 (3.47) 1.58 4.66 3.41
------- -------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income......................... (1.59) (1.59) (1.53) (1.61) (1.67)
Net realized gains............................ -- (0.28) (1.21) -- --
------- -------- ------- ------- -------
Total Distributions............................ (1.59) (1.87) (2.74) (1.61) (1.67)
------- -------- ------- ------- -------
NET ASSET VALUE, END OF YEAR................... $ 12.08 $ 10.21 $ 15.55 $ 16.71 $ 13.66
------- -------- ------- ------- -------
------- -------- ------- ------- -------
MARKET VALUE, END OF YEAR...................... $ 11.00 $12.1875 $ 16.50 $17.125 $ 13.75
------- -------- ------- ------- -------
------- -------- ------- ------- -------
TOTAL RETURN, BASED ON MARKET VALUE(1)......... 3.74% (13.64)% 14.04% 38.28% 33.31%
NET ASSETS, END OF YEAR (000S)................. $51,405 $43,162 $65,142 $69,651 $56,631
RATIOS TO AVERAGE NET ASSETS:
Expenses...................................... 1.51% 1.58% 1.49% 1.52% 1.65%
Net investment income......................... 14.02% 12.95% 9.19% 10.28% 12.99%
PORTFOLIO TURNOVER RATE........................ 172% 163% 214% 120% 70%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase of common stock at the
current market price on the first day and a sale at the current market price
on the last day of each period reported. For purposes of this calculation,
dividends are assumed to be reinvested at prices obtained under the Fund's
dividend reinvestment plan and the broker commission paid to purchase or
sell a share is excluded.
PAGE 14
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
The Emerging Markets Floating Rate Fund Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Emerging Markets Floating Rate
Fund Inc. (the 'Fund') at February 29, 2000, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended and the financial highlights for each of the five years in
the period then ended, in conformity with accounting principles generally
accepted in the United States. These financial statements and financial
highlights (hereafter referred to as 'financial statements') are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at
February 29, 2000 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
April 7, 2000
PAGE 15
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited)
<TABLE>
<CAPTION>
NET REALIZED &
NET INVESTMENT UNREALIZED
INCOME GAIN (LOSS)
--------------------- --------------------
QUARTERS ENDED(a) TOTAL PER SHARE TOTAL PER SHARE
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
May 29, 1998................................................ $1,638 $0.39 $ (2,338) $(0.56)
August 31, 1998............................................. 1,761 0.42 (22,937) (5.45)
November 30, 1998........................................... 1,723 0.41 7,769 1.85
February 26, 1999........................................... 1,694 0.40 (3,885) (0.93)
May 28, 1999................................................ 1,700 0.40 1,989 0.47
August 31, 1999............................................. 1,597 0.38 (787) (0.18)
November 30, 1999........................................... 1,630 0.38 3,703 0.87
February 29, 2000........................................... 1,736 0.41 3,089 0.73
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) Totals expressed in thousands of dollars except per share amounts.
OTHER INFORMATION (unaudited)
Year 2000 Issue. As the year 2000 began, there were few problems caused by the
inability of certain computer systems to tell the difference between the year
2000 and the year 1900 (commonly known as the 'Year 2000' issue). It is still
possible that some computer systems could malfunction in the future because of
the year 2000 issue or as a result of actions taken to address the Year 2000
issue. The Investment Adviser does not anticipate that its services or those of
the Fund's other service providers will be adversely affected, but the
Investment Adviser will continue to monitor the situation. If malfunctions
related to the Year 2000 issue do arise, the Fund and its investments could be
negatively affected.
PAGE 16
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
ADDITIONAL SHAREHOLDER INFORMATION (unaudited)
On May 11, 1999, the Annual Meeting of the Fund's stockholders was held for the
purpose of voting on the following matters:
1. The election of Dr. Riordan Roett and Jeswald W. Salacuse as directors of
the Fund until the year 2002; and
2. The ratification of the selection of PricewaterhouseCoopers LLP as the
Fund's independent accountants for the fiscal year ended February 29,
2000.
The results of the vote on Proposal 1 were as follows:
<TABLE>
<CAPTION>
% OF SHARES VOTES % OF SHARES
NAME OF DIRECTORS VOTES FOR VOTED FOR AGAINST VOTED AGAINST
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Dr. Riordan Roett 3,901,956 97.9% 83,793 2.1%
Jeswald W. Salacuse 3,903,406 97.9 82,343 2.1
- ------------------------------------------------------------------------------------------------------
</TABLE>
The results of the vote on Proposal 2 were as follows:
<TABLE>
<CAPTION>
% OF SHARES VOTES % OF SHARES VOTES % OF SHARES
VOTES FOR VOTED FOR AGAINST VOTED AGAINST ABSTAINED ABSTAINED
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------
3,937,074 98.8% 15,293 0.4% 33,382 0.8%
- --------------------------------------------------------------------------
</TABLE>
* * *
On February 24, 2000, the Special Meeting of the Fund's stockholders was held
for the purpose of voting on the following matters:
1. The approval of new management agreement between PIMCO Advisors L.P. and
the Fund; and
2. The approval of new investment advisory and administration agreement
among PIMCO Advisors L.P., Salomon Brothers Asset Management Inc and the
Fund.
The results of the vote on Proposal 1 were as follows:
<TABLE>
<CAPTION>
% OF SHARES VOTES % OF SHARES VOTES % OF SHARES
VOTES FOR VOTED FOR AGAINST VOTED AGAINST ABSTAINED ABSTAINED
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------
3,810,553 97.5% 44,994 1.2% 50,554 1.3%
- --------------------------------------------------------------------------
</TABLE>
The results of the vote on Proposal 2 were as follows:
<TABLE>
<CAPTION>
% OF SHARES VOTES % OF SHARES VOTES % OF SHARES
VOTES FOR VOTED FOR AGAINST VOTED AGAINST ABSTAINED ABSTAINED
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------
3,814,415 97.6% 42,556 1.1% 49,130 1.3%
- --------------------------------------------------------------------------
</TABLE>
PAGE 17
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
DIVIDEND REINVESTMENT PLAN (unaudited)
1. Each shareholder initially purchasing shares of common stock ('Shares') of
The Emerging Markets Floating Rate Fund Inc. ('Fund') on or after September 6,
1996 will be deemed to have elected to be a participant in the Amended and
Restated Dividend Reinvestment and Cash Purchase Plan ('Plan'), unless the
shareholder specifically elects in writing (addressed to the Agent at the
address below or to any nominee who holds Shares for the shareholder in its
name) to receive all income dividends and distributions of capital gains in
cash, paid by check, mailed directly to the record holder by or under the
direction of American Stock Transfer & Trust Company as the Fund's
dividend-paying agent ('Agent'). A shareholder whose Shares are held in the name
of a broker or nominee who does not provide an automatic reinvestment service
may be required to take such Shares out of 'street name' and register such
Shares in the shareholder's name in order to participate, otherwise dividends
and distributions will be paid in cash to such shareholder by the broker or
nominee. Each participant in the Plan is referred to herein as a 'Participant.'
The Agent will act as Agent for each Participant, and will open accounts for
each Participant under the Plan in the same name as their Shares are registered.
2. Unless the Fund declares a dividend or distribution payable only in the form
of cash, the Agent will apply all dividends and distributions in the manner set
forth below.
3. If, on the determination date, the market price per Share equals or exceeds
the net asset value per Share on that date (such condition, a 'market premium'),
the Agent will receive the dividend or distribution in newly issued Shares of
the Fund on behalf of Participants. If, on the determination date, the net asset
value per Share exceeds the market price per Share (such condition, a 'market
discount'), the Agent will purchase Shares in the open-market. The determination
date will be the fourth New York Stock Exchange trading day (a New York Stock
Exchange trading day being referred to herein as a 'Trading Day') preceding the
payment date for the dividend or distribution. For purposes herein, 'market
price' will mean the average of the highest and lowest prices at which the
Shares sell on the New York Stock Exchange on the particular date, or if there
is no sale on that date, the average of the closing bid and asked quotations.
4. Purchases made by the Agent will be made as soon as practicable commencing on
the Trading Day following the determination date and terminating no later than
30 days after the dividend or distribution payment date except where temporary
curtailment or suspension of purchase is necessary to comply with applicable
provisions of federal securities law; provided, however, that such purchases
will, in any event, terminate on the Trading Day prior to the 'ex-dividend' date
next succeeding the dividend or distribution payment date.
5. If (i) the Agent has not invested the full dividend amount in open-market
purchases by the date specified in paragraph 4 above as the date on which such
purchases must terminate or (ii) a market discount shifts to a market premium
during the purchase period, then the Agent will cease making open-market
purchases and will receive the uninvested portion of the dividend amount in
newly issued Shares (x) in the case of (i) above, at the close of business on
the date the Agent is required to terminate making open-market purchases as
specified in paragraph 4
PAGE 18
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
DIVIDEND REINVESTMENT PLAN (unaudited) (continued)
above or (y) in the case of (ii) above, at the close of business on the date
such shift occurs; but in no event prior to the payment date for the dividend or
distribution.
6. In the event that all or part of a dividend or distribution amount is to be
paid in newly issued Shares, such Shares will be issued to Participants in
accordance with the following formula: (i) if, on the valuation date, the net
asset value per share is less than or equal to the market price per Share, then
the newly issued Shares will be valued at net asset value per Share on the
valuation date; provided, however, that if the net asset value is less than 95%
of the market price on the valuation date, then such Shares will be issued at
95% of the market price and (ii) if, on the valuation date, the net asset value
per share is greater than the market price per Share, then the newly issued
Shares will be issued at the market price on the valuation date. The valuation
date will be the dividend or distribution payment date, except that with respect
to Shares issued pursuant to paragraph 5 above the valuation date will be the
date such Shares are issued. If a date that would otherwise be a valuation date
is not a Trading Day, the valuation date will be the next preceding Trading Day.
7. Participants have the option of making additional cash payments to the Agent,
monthly, in a minimum amount of $250, for investment in Shares. The Agent will
use all such funds received from Participants to purchase Shares in the open
market on or about the first business day of each month. To avoid unnecessary
cash accumulations, and also to allow ample time for receipt and processing by
the Agent, Participants should send in voluntary cash payments to be received by
the Agent approximately 10 days before an applicable purchase date specified
above. A Participant may withdraw a voluntary cash payment by written notice, if
the notice is received by the Agent not less than 48 hours before such payment
is to be invested.
8. Purchases by the Agent pursuant to paragraphs 4 and 7 above may be made on
any securities exchange on which the Shares of the Fund are traded, in the
over-the-counter market or in negotiated transactions, and may be on such terms
as to price, delivery and otherwise as the Agent shall determine. Funds held by
the Agent uninvested will not bear interest, and it is understood that, in any
event, the Agent shall have no liability in connection with any inability to
purchase Shares within the time periods herein provided, or with the timing of
any purchases effected. The Agent shall have no responsibility as to the value
of the Shares acquired for the Participant's account. The Agent may commingle
amounts of all Participants to be used for open-market purchases of Shares and
the price per Share allocable to each Participant in connection with such
purchases shall be the average price (including brokerage commissions) of all
Shares purchased by the Agent.
9. The Agent will maintain all Participants' accounts in the Plan and will
furnish written confirmations of all transactions in each account, including
information needed by Participants for personal and tax records. The Agent will
hold Shares acquired pursuant to the Plan in noncertificated form in the
Participant's name or that of its nominee, and each Participant's proxy will
include those Shares purchased pursuant to the Plan. The Agent will forward to
Participants any proxy solicitation material and will vote any Shares so held
for Participants only in accordance
PAGE 19
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
DIVIDEND REINVESTMENT PLAN (unaudited) (continued)
with the proxy returned by Participants to the Fund. Upon written request, the
Agent will deliver to Participants, without charge, a certificate or
certificates for the full Shares.
10. The Agent will confirm to Participants each acquisition made for their
respective accounts as soon as practicable but not later than 60 days after the
date thereof. Although Participants may from time to time have an undivided
fractional interest (computed to three decimal places) in a Share of the Fund,
no certificates for fractional shares will be issued. Dividends and
distributions on fractional shares will be credited to each Participant's
account. In the event of termination of a Participant's account under Plan, the
Agent will adjust for any such undivided fractional interest in cash at the
market value of the Fund's Shares at the time of termination less the pro rata
expense of any sale required to make such an adjustment.
11. Any share dividends or split shares distributed by the Fund on Shares held
by the Agent for Participants will be credited to their respective accounts. In
the event that the Fund makes available to Participants rights to purchase
additional Shares or other securities, the Shares held for Participants under
the Plan will be added to other Shares held by the Participants in calculating
the number of rights to be issued to Participants.
12. The Agent's service fee for handling capital gains distributions or income
dividends will be paid by the Fund. Participants will be charged a pro rata
share of brokerage commissions on all open-market purchases.
13. Participants may terminate their accounts under the Plan by notifying the
Agent in writing. Such termination will be effective immediately if notice is
received by the Agent not less than 10 days prior to any dividend or
distribution record date; otherwise such termination will be effective on the
first Trading Day after the payment date for such dividend or distribution with
respect to any subsequent dividend or distribution. The Plan may be amended or
terminated by the Fund as applied to any voluntary cash payments made and any
income dividend or capital gains distribution paid subsequent to written notice
of the change or termination sent to Participants at least 30 days prior to the
record date for the income dividend or capital gains distribution. The Plan may
be amended or terminated by the Agent, with the Fund's prior written consent, on
at least 30 days' written notice to Participants. Notwithstanding the preceding
two sentences, the Agent or the Fund may amend or supplement the Plan at any
time or times when necessary or appropriate to comply with applicable law or
rules or policies of the Securities and Exchange Commission or any other
regulatory authority. Upon any termination, the Agent will cause a certificate
or certificates for the full Shares held by each Participant under the Plan and
cash adjustment for any fraction to be delivered to each Participant without
charge. If the Participant elects by notice to the Agent in writing in advance
of such termination to have the Agent sell part or all of a Participant's Shares
and remit the proceeds to Participant, the Agent is authorized to deduct a
brokerage commission for this transaction from the proceeds.
14. Any amendment or supplement shall be deemed to be accepted by each
Participant unless, prior to the effective date thereof, the Agent receives
written notice of the termination of the
PAGE 20
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
DIVIDEND REINVESTMENT PLAN (unaudited) (continued)
Participant's account under the Plan. Any such amendment may include an
appointment by the Agent in its place and stead of a successor Agent under these
terms and conditions, with full power and authority to perform all or any of the
acts to be performed by the Agent under these terms and conditions. Upon any
such appointment of an Agent for the purpose of receiving dividends and
distributions, the Fund will be authorized to pay to such successor Agent, for
each Participant's account, all dividends and distributions payable on Shares of
the Fund held in each Participant's name or under the Plan for retention or
application by such successor Agent as provided in these terms and conditions.
15. In the case of Participants, such as banks, broker-dealers or other
nominees, which hold Shares for others who are beneficial owners ('Nominee
Holders'), the Agent will administer the Plan on the basis of the number of
Shares certified from time to time by each Nominee Holder as representing the
total amount registered in the Nominee Holder's name and held for the account of
beneficial owners who are to participate in the Plan.
16. The Agent shall at all times act in good faith and use its best efforts
within reasonable limits to insure the accuracy of all services performed under
this Agreement and to comply with applicable law, but assumes no responsibility
and shall not be liable for loss or damage due to errors unless such error is
caused by its negligence, bad faith, or willful misconduct or that of its
employees.
17. All correspondence concerning the Plan should be directed to the Agent at 40
Wall Street, 46th Floor, New York, New York 10005.
PAGE 21
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK.)
<PAGE>
THE EMERGING MARKETS FLOATING RATE FUND INC.
DIRECTORS
CHARLES F. BARBER
Consultant; formerly Chairman,
ASARCO Inc.
WILLIAM D. CVENGROS
Co-Chairman of the Board;
Chief Executive Officer and
President of Value Advisors LLC and
President of PIMCO Advisors L.P.
LESLIE H. GELB
President, The Council on
Foreign Relations
HEATH B. MCLENDON
Co-Chairman of the Board;
Managing Director, Salomon Smith Barney Inc.; President and Director,
SSB Citi Fund
Management LLC and Travelers
Investment Advisers, 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
OFFICERS
WILLIAM D. CVENGROS
Co-Chairman of the Board
HEATH B. MCLENDON
Co-Chairman of the Board
STEPHEN J. TREADWAY
President
LEWIS E. DAIDONE
Executive Vice President and Treasurer
THOMAS K. FLANAGAN
Executive Vice President
NEWTON B. SCHOTT
Executive Vice President
PETER J. WILBY
Executive Vice President
ANTHONY PACE
Controller
CHRISTINA T. SYDOR
Secretary
THE EMERGING MARKETS
FLOATING RATE FUND INC.
7 World Trade Center
New York, New York 10048
TELEPHONE
1-888-777-0102
INVESTMENT MANAGER
PIMCO Advisors L.P.
800 Newport Center Drive
Suite 100
Newport Beach, California 92660
INVESTMENT ADVISER
Salomon Brothers Asset Management Inc
7 World Trade Center
New York, New York 10048
CUSTODIAN
The Chase Manhattan Bank
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
PricewaterhouseCoopers 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
<PAGE>
The Emerging Markets
Floating Rate Fund Inc.
ANNUAL REPORT
FEBRUARY 29, 2000
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
- ---------------------
BULK RATE
U.S. POSTAGE
PAID
STATEN ISLAND, NY
PERMIT No.
169
- ---------------------
EFLANN 2/00
STATEMENT OF DIFFERENCES
The division sign shall be expressed as.................................[div]
