<PAGE>
-----------------------------------------------------------------
MORGAN STANLEY
DEAN WITTER
ASIA-PACIFIC
FUND, INC.
-----------------------------------------------------------------
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
MORGAN STANLEY DEAN WITTER
INVESTMENT MANAGEMENT INC.
INVESTMENT ADVISER
MORGAN STANLEY DEAN WITTER ASIA-PACIFIC FUND, INC.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Barton M. Biggs
CHAIRMAN OF THE BOARD
OF DIRECTORS
Harold J. Schaaff, Jr.
PRESIDENT AND DIRECTOR
John D. Barrett II
DIRECTOR
Gerard E. Jones
DIRECTOR
Graham E. Jones
DIRECTOR
John A. Levin
DIRECTOR
Andrew McNally IV
DIRECTOR
William G. Morton, Jr.
DIRECTOR
Samuel T. Reeves
DIRECTOR
Fergus Reid
DIRECTOR
Frederick O. Robertshaw
DIRECTOR
Stefanie V. Chang
VICE PRESIDENT
Arthur J. Lev
VICE PRESIDENT
Joseph P. Stadler
VICE PRESIDENT
Mary E. Mullin
SECRETARY
Belinda A. Brady
TREASURER
Robin L. Conkey
ASSISTANT TREASURER
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INVESTMENT ADVISER
Morgan Stanley Dean Witter Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020
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ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
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CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
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SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
(800) 278-4353
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LEGAL COUNSEL
Clifford Chance Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
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INDEPENDENT ACCOUNTANTS
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
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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 or visit our website at www.msdw.com/im.
<PAGE>
LETTER TO SHAREHOLDERS
----------
For the nine months ended September 30, 2000, the Morgan Stanley Dean Witter
Asia-Pacific Fund, Inc. (the "Fund") had a total return, based on net asset
value per share, of -15.19% compared to -19.72% for its benchmark (described
below). For the period from the Fund's commencement of operations on August
2, 1994 through September 30, 2000, the Fund's total return, based on net
asset value per share, was 8.96% compared with -17.99% for the benchmark. The
benchmark for the Fund is comprised of two Morgan Stanley Capital
International (MSCI) indices; Japan and All-Country Asia-Pacific Free
ex-Japan, with each index weighted equally. On September 30, 2000, the
closing price of the Fund's shares on the New York Stock Exchange was
$9 7/16, representing a 26.8% discount to the net asset value per share.
ASIA EX-JAPAN
The third quarter saw a severe downturn in most Asian markets. An uncertain
global growth environment, escalating oil prices, political uncertainties and
earnings downgrades from leading U.S. technology companies caused a big sell
off in Asian stocks. Inflationary risks and U.S. interest rate risks that
were prominent in the first half of the year receded as the U.S. economy
slowed down, but fears of an earnings risk from collapsing demand increased
substantially.
The Korean market suffered a number of setbacks in the third quarter and was
among the worst performing markets in the region. The withdrawal of Ford
Motors from its bid to take over Daewoo Motors was seen as a major negative
to corporate restructuring. Restructuring in Korea on the financial and
corporate fronts has made progress over the last two years but this has been
painfully slow, partly because the big gains seen in equity markets in 1999
had induced a degree of complacency. However, with the recent collapse in
asset prices, government and corporates now have no other choice but to
continue to push ahead and implement reform. It is likely that Korean
restructuring will regain momentum in the next six months. The government
made a firm commitment recently to address systemic risk in the financial
system that would result in a consolidation of the banking sector. As a
result, we increased our weighting in the highly undervalued Korean banks.
The re-rating for the Korean market should happen only gradually as the
credit allocation process improves, and when return on equity reaches higher
levels relative to historical averages.
China continued to generate a stream of positive economic data. Retail sales,
contracted foreign direct investment, real estate prices and exports were all
on an uptrend through the third quarter. Export growth, largely a function of
global demand, seemed to be peaking. China laid out the road-map for
significant financial sector reforms and is likely to open up the A-share
market to foreign investors over a two-year time frame. After the successful
listings of Petrochina and China Unicom, we expect to see another sizable
offering from Sinopec in the oil-refining sector. China continues to push
forward the restructuring theme of privatizing state assets to improve
allocation efficiency. We continue to maintain a positive bias towards China
equities as the subset of investable companies continues to expand. China
looks set to join the WTO, and its entry should ensure continued reform and
liberalization.
Taiwan was the worst performing market in the third quarter, bogged down
by political issues relating to the anti-corruption drive launched by the
DPP government. A number of bankruptcies emerged from this clean up
process and bank loans that were done on non-economic terms were recalled.
Domestic investor confidence has ebbed and government intervention to prop
up the stock market is having little effect. With the domestic credit
system strained, access to finance is becoming a major problem for
corporate Taiwan. The retail response to the recent Chungwa Telecom deal
was very poor. We are seeing a spate of foreign fund raising from Taiwan
companies even at the current prices. Earnings revisions for Taiwan
companies are on a downward trend and technology stocks have been marked
down considerably from their highs by investors worried about declining
personal computer sales and the end of the semiconductor cycle. We believe
that the semiconductor cycle is witnessing a mid-cycle correction and is
likely to show good growth for another two years. We continue to have a
positive stance on semiconductor foundry stocks in Taiwan.
Hong Kong has been one of the best performing Asian markets this year. A
strong China macroeconomic story and renewed attention on banking and
property sectors as investors withdrew from TMT (technology, media and
telecommunication) sectors, gave positive momentum to the market. The
improving outlook for U.S. interest rates and a significant
under-ownership of traditional economy stocks resulted in the significant
outperformance of property and bank stocks in the last quarter. As most
Hong Kong banks over-provisioned in tougher times, we saw a steep decline
in provisioning charges and strong profit growth in the first half of the
year. Loan growth has been picking up, albeit slowly as banks focus on
consumer lending. Retail sentiment on property has improved as the
government stepped back from supplying units in the mass residential
market via the home ownership scheme. The upcoming "new economy" sectors
in Hong Kong which were rising high early this year have deflated
considerably, led by Pacific Century Cyberworks, which has halved since
the merger with Hong Kong Telecom. Although Hong Kong serves as a good
defensive market during times of melt-
2
<PAGE>
down in global technology stocks, we are still cautious given the recent
outperformance and the fact that the economy has clearly lost some momentum
recently, notably in exports and consumption. Growth should return to normal
over the next six to twelve months, after the phenomenal cyclical rebound
seen in the first half of this year.
As for the Southeast Asian markets, Thailand, Indonesia and the Philippines
in aggregate no longer have the critical mass to matter in a pan-Asian
context; only the Singapore market remains in the focus of investors. We
increased weightings in Singapore in the last quarter as the country stands
out for its commitment to systematic restructuring. The Singapore government
seems committed to reducing stakes in major government-linked corporations.
Recently released economic data showed no slowdown from higher base effects.
Non-oil domestic exports and domestic consumption continued to show robust
growth numbers. The year-on-year loan growth number picked up as well.
Although we have been adding Singapore banks incrementally, we will not
aggressively overweight banks until they show a clear direction in the usage
of surplus capital. The preference of Singapore banks to keep waiting for the
right acquisition opportunities rather than return capital to shareholders
could cause a delay in achieving their medium-term return on equity targets.
In the technology sector, we reduced weightings in Natsteel Electronics and
added to Chartered Semiconductor given recent price corrections. In Malaysia,
we continued to stay underweight the market as we are still concerned with
corporate governance issues and declining liquidity as trade surpluses start
to slow down.
We expect to continue to retain a large overweight in the information
technology and semiconductor stocks. After recent massive corrections, Asian
technology and telecommunication stocks are much cheaper on a relative basis
compared to their global counterparts. Despite this, they have been unable to
de-couple from global trends that have caused the big corrections in
expensive NASDAQ stocks. As for the outlook for the Asian markets, we believe
that the best of macroeconomic releases are behind us as GDP growth for Asia
peaked in the first quarter of this year. We expect growth rates to
decelerate in the second half of 2000 and into 2001, due to higher base
effects and slower external demand. Net exports for the Asian region should
continue to stay strong, albeit with declining impact as the main engine of
growth. Improving domestic demand will be crucial in determining future
growth prospects.
JAPAN
The Japanese equity market, together with global equity markets, faced a
challenging environment during this review period. First, domestic retail
investors had ballooned their purchases for "new economy" equities and long
margin positions rose to over $50 billion at the peak of the market in March
2000. As these stocks fell sharply, such investors became forced sellers in a
declining market. In addition, further accelerating the delta of the decline
were foreign investors together with Japanese institutions that unloaded
their "cross-holdings" into the September half-year book closing. Domestic
banks were particularly aggressive with their sales after the Bank of Japan
terminated the "0%" interest rate policy. Although we forecasted a modest
rise in interest rates during the third quarter, we had not considered the
negative impact it would have on institutional stock sales.
Secondly, this period can be characterized as one of "Macro Vice, Micro
Virtue." Although the first quarter GDP (at 10% annualized) and second
quarter GDP (at 4.2% annualized) were ahead of consensus expectations, the
carefully watched improvement in consumer spending was not evidenced by
published economic data, which could be attributed to data quality problems.
Corporate profit growth, on the other hand, showed remarkable gains. For
example, non-financial companies during the April-June period reported an
aggregate 3% top line growth while profits jumped 39% - a clear indication to
us that the efforts of restructuring are bearing abundant fruit.
In addition, many observers of Japan expected a more favorable flow into
equities when the huge redemption of 10-year postal deposits began to mature,
commencing in early 2000. These colossal maturing deposits are estimated to
total almost 20% of Japan's annual GDP over an 18-month redemption period.
Despite related optimism, the retail investor, faced with highly volatile
markets and political uncertainty with the early demise of Prime Minister
Obu-chi, reinvested capital gains and proceeds back into postal savings or
bank deposits. We believe that economic activity, which is rapidly improving,
and stock market sentiment, which declined sharply, have become excessively
polarized over the last several months. The equity market has entered a
transition and adjustment period after the 50% gain in 1999 while marred by
uncertain global economic prospects that Greenspan will prevail and growth
will slow.
During the September G7 meeting, the escalation of oil prices and decline of
the Euro were paramount in their discussions with the likely consensus that
the worst is over. In addition, the peak in the maturity of Postal Savings in
the coming months will likely result in the migration to more securities
investments than in the previous months, while Japanese pension funds are
also expected to increase their allocation to domestic equities.
3
<PAGE>
Corporate Japan will increase information technology (IT) spending as a
percentage of capital expenditures during the coming year with $100 billion
of free cash flow now being generated by leading companies providing fuel for
these investments. Japan's economic cycle is at a polar opposite of that of
the U.S.; we believe IT spending and productivity improvements for corporate
Japan will be noteworthy. Importantly, this will contribute to further
increasing profits for related beneficiaries in Japanese enterprises, many of
which we have selected for inclusion in core holdings in the portfolio.
Longer term, just as Japan dominated televisions and VCR's in the 1970's and
80's, many of these world class technology companies will likely dominate the
manufacturing of "digital" products, globally. This is a powerful recipe for
sustainable earnings growth for a select group of Japanese stocks.
When consumers regain confidence of sustainable economic recovery, a virtuous
cycle will reemerge and the current stock market levels, we believe, will
converge with the improvement in economic activity. We have conviction that
investors, both domestic and foreign, are now too pessimistic on the
dramatically improving earnings recovery. In the coming months we believe
local merger and acquisition activity and a move to mark-to-market accounting
by March 2001 will become catalysts for the re-evaluation of Japanese
equities, on a reasonably sustainable basis. In an expensive world "priced
for perfection" Japan's dominant companies are reporting earnings surprises
in a market priced for disaster.
During the third quarter we have made no major changes to the portfolio.
Companies in our holdings such as Kyo-cera, NEC and Toshiba have revised
earnings upward and we believe the next several months will be followed by
similar announcements by other major companies. With the negative supply of
equities now largely over and the bankruptcy of Sogo a memory, we believe the
Fund is well positioned to take advantage of potential earnings surprises.
On January 23, 1998, the Fund commenced a share repurchase program for
purposes of enhancing shareholder value and reducing the discount at which
the Fund's shares traded from their net asset value. For the nine month
period ended September 30, 2000, the Fund repurchased 4,568,000 shares or
7.34% of its Common Stock at an average price per share of $10.26, excluding
$228,000 in commissions paid, and an average discount of 26.32% from net
asset value per share. For the year ended December 31, 1999, the Fund
repurchased 5,040,600 shares or 7.49% of it's Common Stock at an average
price per share of $8.23, excluding $252,000 in commissions paid, and an
average discount of 15.81% from net asset value per share. Since the
inception of the program, the Fund has repurchased 13,988,534 shares or
19.52% of its Common Stock at an average price per share of $8.38, excluding
$663,000 in commissions paid, and an average discount of 20.60% from net
asset value per share. The Fund expects to continue to repurchase its
outstanding shares at such time and in such amounts as it believes will
further the accomplishment of the foregoing objectives, subject to review by
the Board of Directors.
Sincerely,
/s/ Harold J. Schaaff, Jr.
Harold J. Schaaff, Jr.
PRESIDENT AND DIRECTOR
October 2000
THE INFORMATION CONTAINED IN THIS OVERVIEW REGARDING SPECIFIC SECURITIES IS
FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS A
RECOMMENDATION TO PURCHASE OR SELL THE SECURITIES MENTIONED.
FOREIGN INVESTING INVOLVES CERTAIN RISKS, INCLUDING CURRENCY FLUCTUATIONS AND
CONTROLS, RESTRICTIONS ON FOREIGN INVESTMENTS, LESS GOVERNMENTAL SUPERVISION
AND REGULATION, LESS LIQUIDITY AND THE POTENTIAL FOR MARKET VOLATILITY AND
POLITICAL INSTABILITY.
--------------------------------------------------------------------------------
DAILY NET ASSET AND MARKET VALUES, AS WELL AS MONTHLY PORTFOLIO INFORMATION
FOR THE FUND, ARE AVAILABLE ON OUR WEBSITE at www.msdw.com/im.
4
<PAGE>
Morgan Stanley Dean Witter Asia-Pacific Fund, Inc.
Investment Summary as of September 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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>
YEAR TO DATE -19.85% -- -15.19% -- -19.72% --
ONE YEAR -3.80 -3.80% 5.49 5.49% -6.15 -6.15%
FIVE YEAR -0.75 -0.15 11.57 2.21 -13.45 -2.85
SINCE INCEPTION* -20.28 -3.61 8.96 1.40 -17.99 -3.17
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
-------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
[GRAPH]
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, NINE MONTHS
ENDED
SEPTEMBER 30,
1994* 1995 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value Per Share .... $ 13.20 $ 14.34 $ 11.95 $ 8.77 $ 8.73 $ 15.26 $ 12.90
Market Value Per Share ....... $ 12.25 $ 13.33 $ 9.75 $ 7.44 $ 7.00 $ 11.81 $ 9.44
Premium/(Discount) ........... -7.2% -7.0% -18.4% -15.2% -19.8% -22.6% -26.8%
Income Dividends ............ $ 0.04 $ 0.05 $ 0.61 $ 0.02 $ 0.01 $ 0.04 $ 0.03
Capital Gains Distributions .. $ 0.01 $ 0.02 -- -- -- -- --
Fund Total Return (2)......... -5.94% 9.24% -2.87%+ -26.36% -0.34% 75.39% -15.19%
Index Total Return (3)........ -5.24% 2.88% -3.63% -29.55% -0.30% 54.79% -19.72%
</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 stok and the net asset value
per share of the Fund.
(3) The benchmark for investment performance is comprised of two Morgan
Stanley Capital International (MSCI) indices; Japan and All-Country
Asia-Pacific Free ex-Japan with each index weighted equally.
* The Fund commenced operations on August 2, 1994.
+ This return does not include the effect of the rights issued in connection
with the Rights Offering.
5
<PAGE>
Morgan Stanley Dean Witter Asia-Pacific Fund, Inc.
Portfolio Summary as of September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIVERSIFICATION OF TOTAL INVESTMENTS
[PIE CHART]
<TABLE>
<S> <C>
Equity Securities (97.3%)
Short-Term Investments (2.7%)
</TABLE>
--------------------------------------------------------------------------------
INDUSTRIES
[PIE CHART]
<TABLE>
<S> <C>
Banks (5.6%)
Chemicals (4.0%)
Computer & Peripherals (7.2%)
Diversified Financial (5.2%)
Electronic Equipment & Instruments (6.9%)
Houshold Durables (6.6%)
Machinery (6.0%)
Other* (42.9%)
Pharmaceuticals (3.9%)
Semiconductor Equipment & Products (8.0%)
Wireless Telecommunication Services (3.7%)
</TABLE>
--------------------------------------------------------------------------------
COUNTRY WEIGHTINGS
[PIE CHART]
<TABLE>
<S> <C>
Australia (7.0%)
China / Hong Kong (12.3%)
India (5.4%)
Japan (49.8%)
Malaysia (2.2%)
New Zealand (0.2%)
Other (4.4%)
Singapore (4.8%)
South Korea (6.3%)
Taiwan (6.8%)
Thailand (0.8%)
</TABLE>
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TEN LARGEST HOLDINGS**
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. Hutchison Whampoa Ltd. (China / Hong Kong) 3.0%
2. Samsung Electronics Co. (South Korea) 2.0
3. Nintendo Co., Ltd. (Japan) 2.0
4. Sony Corp. (Japan) 1.9
5. Ricoh Co., Ltd. (Japan) 1.6
6. Matsushita Electric Industrial Co. (Japan) 1.6
7. NEC Corp. (Japan) 1.6
8. News Corp., Ltd. (Australia) 1.6
9. Canon, Inc. (Japan) 1.6
10. Taiwan Semiconductor Manufacturing
Co., Ltd. (Taiwan) 1.6
-----
18.5%
-----
-----
</TABLE>
* Other includes industries/countries not shown separately
and other assets and liabilities.
** Excludes short-term investments.
6
<PAGE>
INVESTMENTS (UNAUDITED)
-----------
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (000)
--------------------------------------------------------------------------
COMMON STOCKS (95.7%)
(Unless otherwise noted)
--------------------------------------------------------------------------
AUSTRALIA (7.0%)
AIRLINES
<S> <C> <C>
Qantas Airlines Ltd. 913,700 U.S.$ 1,761
BANKS -------------
Commonwealth Bank of
Australia 134,350 2,009
National Australia Bank Ltd. 293,450 4,055
Westpac Banking Corp., Ltd. 391,950 2,707
-------------
8,771
-------------
BEVERAGES
Foster's Brewing Group Ltd. 889,800 2,073
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Davnet Ltd. 1,006,700 589
Macquarie Corporate
Telecommunications Holdings
Ltd. 533,300 534
Telstra Corp., Ltd. 776,450 2,541
Telstra Corp., Ltd.
(Installment Receipts) 663,000 1,085
-------------
4,749
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS
ERG Ltd. 348,460 1,671
-------------
HEALTH CARE PROVIDERS & SERVICES
Sonic Healthcare Ltd. 237,150 947
-------------
INDUSTRIAL CONGLOMERATES
Brambles Industries Ltd. 75,000 1,961
-------------
INTERNET SOFTWARE & SERVICES
Securenet Ltd. 220,500 1,100
-------------
MEDIA
News Corp., Ltd. 841,800 11,857
-------------
METALS & MINING
Broken Hill Proprietary Co., Ltd. 631,300 6,549
Normandy Mining Ltd. 2,451,600 1,324
Rio Tinto Ltd. 356,800 4,784
-------------
12,657
-------------
PHARMACEUTICALS
CSL Ltd. 115,450 2,170
-------------
REAL ESTATE
Lend Lease Corp., Ltd. 192,350 2,167
-------------
SOFTWARE
Solution 6 Holdings Ltd. 261,450 306
-------------
52,190
-------------
--------------------------------------------------------------------------
CHINA / HONG KONG (12.3%)
AIRLINES
Cathay Pacific Airways 1,459,000 2,676
-------------
BANKS
Dao Heng Bank Group Ltd. 207,000 1,025
Hang Seng Bank Ltd. 222,600 2,398
-------------
3,423
-------------
COMMERCIAL SERVICES & SUPPLIES
Cosco Pacific Ltd. 1,472,000 1,114
-------------
COMPUTERS & PERIPHERALS
Legend Holdings Ltd. 2,238,000 2,124
-------------
DIVERSIFIED FINANCIALS
Hutchison Whampoa Ltd. 1,700,950 22,580
Swire Pacific Ltd. 'A' 728,600 4,542
-------------
27,122
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Pacific Century CyberWorks Ltd. 1,517,638 1,713
-------------
ELECTRICAL EQUIPMENT
Johnson Electric Holdings Ltd. 1,040,000 2,234
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS
Great Wall Technology Co., Ltd. 2,513,000 927
-------------
GAS UTILITIES
Hong Kong & China Gas Co., Ltd. 1,923,500 2,405
-------------
HOUSEHOLD DURABLES
TCL International Holdings Ltd. 1,918,000 406
-------------
INDUSTRIAL CONGLOMERATES
China Merchants Holdings
International Co., Ltd. 1,302,000 994
Citic Pacific Ltd. 300,000 1,293
-------------
2,287
-------------
INTERNET SOFTWARE & SERVICES
chinadotcom corp. 41,200 545
Timeless Software Ltd. 2,524,000 453
-------------
998
-------------
MEDIA
Asia Satellite Telecom Holdings 596,000 1,452
Television Broadcasts Ltd. 376,000 2,257
-------------
3,709
-------------
OIL & GAS
PetroChina Co., Ltd. 6,782,000 1,383
-------------
REAL ESTATE
Cheung Kong (Holdings) Ltd. 658,000 7,954
Henderson Land Development Co., Ltd. 143,000 737
Hong Kong Land Holdings Ltd. 562,000 1,034
Sun Hung Kai Properties Ltd. 888,000 8,371
-------------
18,096
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS
ASM Pacific Technology Ltd. 344,000 783
-------------
TEXTILES & APPAREL
Li & Fung Ltd. 2,200,000 4,642
-------------
WIRELESS TELECOMMUNICATION SERVICES
China Mobile (Hong Kong) Ltd. 1,692,000 11,231
China Unicom Ltd. 1,752,000 3,921
SmarTone Telecommunications Holdings Ltd. 188,000 295
-------------
15,447
-------------
91,489
-------------
--------------------------------------------------------------------------
INDIA (5.4%) AUTOMOBILES
Hero Honda Motors Ltd. 66,008 1,189
-------------
BANKS
State Bank of India Ltd. 112 -- @
-------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------------------------
INDIA (CONTINUED)
CHEMICALS
<S> <C> <C>
Grasim Industries Ltd. 150,000 U.S.$ 698
Reliance Industries Ltd. 170,000 1,267
-------------
1,965
-------------
COMMERCIAL SERVICES & SUPPLIES
Aptech Ltd. 164,800 1,641
-------------
COMPUTERS & PERIPHERALS
Digital Equipment (India) Ltd. 108,322 1,136
-------------
CONSTRUCTION MATERIALS
Associated Cement Cos., Ltd. 110 -- @
Gujarat Ambuja Cements Ltd. 255,000 861
-------------
861
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Mahanagar Telephone Nigam Ltd. 468,127 1,117
Videsh Sanchar Nigam Ltd. 75,810 1,205
-------------
2,322
-------------
ELECTRICAL EQUIPMENT
Bharat Heavy Electricals Ltd. 450,200 1,018
Sterlite Industries (India) Ltd. 236,750 880
Sterlite Optical Technologies Ltd. 236,750 4,271
-------------
6,169
-------------
GAS UTILITIES
Gas Authority of India Ltd. GDR 115,000 650
-------------
INVESTMENT COMPANIES
(b)Morgan Stanley Growth Fund 17,158,100 4,067
-------------
IT CONSULTING & SERVICES
HCL Technologies Ltd. 30,835 773
Infosys Technologies Ltd. 60,650 9,687
NIIT Ltd. 79,200 2,455
Ramco Systems Ltd. 23,400 672
SSI Ltd. GDR 105,000 609
-------------
14,196
-------------
MACHINERY
Escorts Ltd. 180,000 326
-------------
METALS & MINING
Tata Iron & Steel Co., Ltd. 1,949 4
-------------
PHARMACEUTICALS
Dr. Reddy's Laboratories Ltd. 28,000 765
Ranbaxy Laboratories Ltd. 68,000 942
-------------
1,707
-------------
ROAD & RAIL
Container Corp. of India Ltd. 268,900 702
-------------
SOFTWARE
Mastek Ltd. 1,800 97
PSI Data Systems Ltd. 31,785 402
SSI Ltd. 26,000 1,357
Tata Infotech Ltd. 25 -- @
-------------
1,856
-------------
TEXTILES & APPAREL
Shopper Stop 324,100 1,128
-------------
TOBACCO
ITC Ltd. 14,900 232
-------------
40,151
-------------
--------------------------------------------------------------------------
INDONESIA (0.1%)
TOBACCO
Gudang Garam Tbk 472,000 U.S.$ 565
--------------------------------------------------------------------------
JAPAN (49.8%)
AUTO COMPONENTS
Nifco, Inc. 375,000 4,314
-------------
AUTOMOBILES
Nissan Motor Co. 1,160,000 6,668
Suzuki Motor Corp. 430,000 4,477
Toyota Motor Corp. 195,000 7,719
-------------
18,864
-------------
BANKS
The Bank of Tokyo-Mitsubishi, Ltd. 85,000 1,006
-------------
BUILDING PRODUCTS
Sanwa Shutter Corp., Ltd. 642,000 1,756
-------------
CHEMICAL
Daicel Chemical Industries Ltd. 1,220,000 3,393
Denki Kagaku Kogyo Kabushiki Kaisha 500,000 1,817
Kaneka Corp. 829,000 8,785
Lintec Corp. 403,000 3,785
Mitsubishi Chemical Corp. 1,070,000 3,720
Shin-Etsu Polymer Co., Ltd. 587,000 4,043
-------------
25,543
-------------
COMMERCIAL SERVICES & SUPPLIES
Dai Nippon Printing Co., Ltd. 413,000 6,145
Nissha Printing Co., Ltd. 105,000 608
-------------
6,753
-------------
COMPUTERS & PERIPHERALS
Fujitsu Ltd. 475,000 11,053
Mitsumi Electric Co., Ltd. 246,000 9,715
NEC Corp. 524,000 11,926
Toshiba Corp. 1,346,000 10,869
-------------
43,563
-------------
CONSTRUCTION & ENGINEERING
Kurita Water Industries Ltd. 295,000 5,456
-------------
DISTRIBUTORS
Nissei Sangyo Co., Ltd. 165,000 2,157
-------------
DIVERSIFIED FINANCIALS
Hitachi Credit Corp. 378,400 10,349
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Nippon Telephone &
Telegraph Corp. 932 9,159
-------------
ELECTRIC UTILITIES
Tokyo Electric Power Co., Inc. 162,000 3,822
-------------
ELECTRICAL EQUIPMENT
Furakawa Electric Co., Ltd. 213,000 5,894
Kyudenko Co. 330,000 1,264
-------------
7,158
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS
Hitachi Ltd. 955,000 11,102
Kyocera Corp. 70,000 10,708
--------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
--------------------------------------------------------------------------
JAPAN (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS (CONTINUED)
<S> <C> <C>
Ryosan Co., Ltd. 173,000 U.S.$ 3,368
TDK Corp. 86,000 10,923
-------------
36,101
-------------
FOOD & DRUG RETAILING
FamilyMart Co., Ltd. 142,200 3,672
-------------
FOOD PRODUCTS
House Foods Corp. 147,000 2,022
Nippon Meat Packers, Inc. 258,000 3,545
-------------
5,567
-------------
HOUSEHOLD DURABLES
Aiwa Co., Ltd. 169,800 1,697
Casio Computer Co., Ltd. 552,000 6,448
Matsushita Electric Industrial Co. 456,000 11,964
Rinnai Corp. 170,700 3,727
Sangetsu Co., Ltd. 127,000 1,839
Sekisui Chemical Co., Ltd. 1,043,000 3,423
Sekisui House Ltd. 575,000 5,571
Sony Corp. 137,000 13,920
-------------
48,589
-------------
LEISURE EQUIPMENT & PRODUCTS
Fuji Photo Film Co., Ltd. 284,000 9,531
Nintendo Co., Ltd. 79,400 14,523
Yamaha Corp. 432,000 3,633
-------------
27,687
-------------
MACHINERY
Amada Co., Ltd. 667,000 5,534
Daifuku Co., Ltd. 581,000 5,726
Daikin Industries Ltd. 475,000 9,182
Fuji Machine Manufacturing Co., Ltd. 184,500 6,585
Fujitec Co., Ltd. 400,000 3,208
Minebea Co., Ltd. 500,000 5,864
Mitsubishi Heavy Industries Ltd. 1,250,000 4,960
Tsubakimoto Chain Co. 832,000 3,070
-------------
44,129
-------------
MARINE
Mitsubishi Logistics Corp. 260,000 2,181
-------------
OFFICE ELECTRONICS
Canon, Inc. 264,000 11,724
Ricoh Co., Ltd. 660,000 12,023
-------------
23,747
-------------
PHARMACEUTICALS
Ono Pharmaceutical Co., Ltd. 209,000 8,604
Sankyo Co., Ltd. 341,000 7,604
Yamanouchi Pharmaceutical Co., Ltd. 190,000 9,161
-------------
25,369
-------------
REAL ESTATE
Keihanshin Real Estate Co., Ltd. 164,000 490
Mitsubishi Estate Co., Ltd. 392,000 4,092
-------------
4,582
-------------
--------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS
Rohm Co., Ltd. 29,000 U.S.$ 7,961
-------------
TRADING COMPANIES & DISTRIBUTORS
Nagase & Co., Ltd. 150,000 793
-------------
370,278
-------------
--------------------------------------------------------------------------
MALAYSIA (2.2%)
BANKS
Commerce Asset Holding Bhd 351,000 827
Malayan Banking Bhd 797,000 3,062
Public Bank Bhd 827,000 614
-------------
4,503
-------------
BEVERAGES
Carlsberg Brewery (Malaysia) Bhd 521,000 1,563
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Telekom Malaysia Bhd 654,000 1,721
-------------
ELECTRIC UTILITIES
Tenaga Nasional Bhd 449,000 1,335
-------------
HOTELS RESTAURANTS & LEISURE
Resorts World Bhd 476,000 770
Tanjong plc 570,000 1,178
-------------
1,948
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS
Malaysian Pacific Industries Bhd 199,000 1,322
-------------
TOBACCO
British American Tobacco
(Malaysia) Bhd 223,000 2,098
-------------
WIRELESS TELECOMMUNICATION SERVICES
Digi.com Bhd 957,000 1,713
-------------
16,203
-------------
--------------------------------------------------------------------------
NEW ZEALAND (0.2%)
DIVERSIFIED TELECOMMUNICATION SERVICES
Telecom Corp. of New Zealand Ltd. 671,100 1,674
-------------
--------------------------------------------------------------------------
SINGAPORE (4.8%) AEROSPACE & DEFENSE
SIA Engineering Co., Ltd. 671,000 579
-------------
AIRLINES
Singapore Airlines Ltd. 448,000 4,250
-------------
BANKS
DBS Group Holdings Ltd. 602,979 6,657
Oversea-Chinese Banking Corp., Ltd. 461,700 2,920
Overseas Union Bank Ltd. 356,210 1,659
United Overseas Bank Ltd. 218,000 1,567
-------------
12,803
-------------
COMPUTERS & PERIPHERALS
Natsteel Electronics Ltd. 494,000 1,278
-------------
DIVERSIFIED FINANCIALS
Keppel Corp., Ltd. 572,000 1,164
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS
Omni Industries Ltd. 827,000 1,308
Venture Manufacturing
(Singapore) Ltd. 279,000 2,695
-------------
4,003
-------------
--------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
--------------------------------------------------------------------------
SINGAPORE (CONTINUED)
INSURANCE
Pacific Century Regional
<S> <C> <C>
Developments Ltd. 57,000 U.S.$ 570
-------------
MARINE
Neptune Orient Lines Ltd. 688,000 617
Sembcorp Logistics Ltd. 383,200 2,358
-------------
2,975
-------------
MEDIA
Singapore Press Holdings Ltd. 184,600 2,770
-------------
REAL ESTATE
City Developments Ltd. 297,000 1,452
DBS Land Ltd. 645,000 987
-------------
2,439
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS
Chartered Semiconductor
Manufacturing Ltd. 330,000 2,106
ST Assembly Test Services Ltd. 300,000 590
-------------
2,696
-------------
35,527
-------------
--------------------------------------------------------------------------
SOUTH KOREA (6.3%) AUTOMOBILES
Hyundai Motor Co., Ltd. 48,210 627
-------------
BANKS
Hanvit Bank 536,130 786
Hanvit Bank GDR 22,100 62
H&CB 101,236 2,397
H&CB GDR 8,112 192
Kookmin Bank 136,341 1,626
Shinhan Bank 200,630 2,249
-------------
7,312
-------------
COMMUNICATIONS EQUIPMENT
Telson Electronics Co., Ltd. 93,040 527
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES
Korea Telecom Corp. 3,020 181
Korea Telecom Corp. ADR 65,000 2,186
-------------
2,367
-------------
ELECTRIC UTILITIES
Korea Electric Power Corp. 39,320 1,026
Korea Electric Power Corp. ADR 148,600 1,941
-------------
2,967
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS
Communication Network
Interface, Inc. 71,220 195
Humax Co., Ltd. 90,740 976
Samsung Electro Mechanics Co., Ltd. 32,461 1,097
-------------
2,268
-------------
FOOD PRODUCTS
Tongyang Confectionery Corp. 30,470 814
-------------
INTERNET & CATALOG RETAIL
LG Home Shopping, Inc. 12,030 958
-------------
MEDIA
Cheil Communications, Inc. 16,650 1,403
--------------------------------------------------------------------------
MEDIA (CONTINUED)
CJ39 Shopping Corp. 16,800 U.S.$ 535
-------------
1,938
-------------
METALS & MINING
Pohang Iron & Steel Co., Ltd. ADR 67,900 1,265
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS
Hyundai Electronics Industries Co. 174,217 2,492
Samsung Electronics Co. 75,797 13,730
Samsung Electronics Co. (Preferred) 12,200 1,002
-------------
17,224
-------------
WIRELESS TELECOMMUNICATION SERVICES
Korea Telecom Freetel 14,900 652
SK Telecom Co., Ltd. 6,240 1,522
SK Telecom Co., Ltd. ADR 242,800 6,222
-------------
8,396
-------------
46,663
-------------
--------------------------------------------------------------------------
TAIWAN (6.8%) BANKS
Chinatrust Commercial Bank 1,460,480 1,096
Taishin International Bank 1,989,520 1,207
United World Chinese Commercial Bank 532,440 340
-------------
2,643
-------------
CHEMICALS
Nan Ya Plastic Corp. 1,627,419 2,286
-------------
COMMUNICATIONS EQUIPMENT
Zinwell Corp. 164,000 696
-------------
COMPUTERS & PERIPHERALS
Acer Communications &
Multimedia, Inc. 395,352 783
Advantech Co., Ltd. 206,300 1,139
Asustek Computer, Inc. 487,040 2,581
Compal Electronics, Inc. 552,763 865
Ritek Corp. 74,750 247
-------------
5,615
-------------
ELECTRICAL EQUIPMENT
Delta Electronics, Inc. 521,250 1,856
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS
Ambit Microsystems Corp. 125,378 885
Hon Hai Precision Industry Co., Ltd. 557,860 3,669
Yageo Corp. 1,133,000 901
-------------
5,455
-------------
FOOD & DRUG RETAILING
President Chain Store Corp. 401,632 1,269
-------------
FOOD PRODUCTS
Uni-President Enterprises Co. 1,073,000 757
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS
Advanced Semiconductor
Engineering, Inc. 802,355 1,104
ASE Test Ltd. 44,500 935
Macronix International Co., Ltd. 624,760 995
ProMos Technologies, Inc. 384,053 564
--------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
--------------------------------------------------------------------------
TAIWAN (CONTINUED)
SEMICONDUCTOR EQUIPMENT & PRODUCTS (CONTINUED)
<S> <C> <C>
Realtek Semiconductor Corp. 120,000 U.S.$ 571
Siliconware Precision
Industries Co. 1,041,640 1,044
Siliconware Precision
Industries Co. ADR 166,212 821
Taiwan Semiconductor
Manufacturing Co., Ltd. 3,510,120 11,655
United Microelectronics Corp. 4,204,400 8,994
Via Technologies, Inc. 64,500 682
Winbond Electronics Corp. 1,209,560 1,827
-------------
29,192
-------------
TEXTILES & APPAREL
Far Eastern Textile Ltd. 1,163,724 1,245
Far Eastern Textile Ltd. GDR 7,941 85
-------------
1,330
-------------
51,099
-------------
--------------------------------------------------------------------------
THAILAND (0.8%)
BANKS
Thai Farmers Bank PCL (Foreign) 1,611,600 822
-------------
CONSTRUCTION MATERIALS
Siam City Cement PCL (Foreign) 251,933 598
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS
Delta Electronics PCL (Foreign) 201,316 1,099
-------------
MEDIA
BEC World PCL (Foreign) 143,500 729
-------------
REAL ESTATE
Golden Land Property Development
PCL (Foreign) 2,849,000 304
-------------
WIRELESS TELECOMMUNICATION SERVICES
Advanced Information Service
PCL (Foreign) 159,000 1,343
Total Access Communication PCL 235,000 790
-------------
2,133
-------------
5,685
-------------
--------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost U.S.$646,528) 711,524
-------------
--------------------------------------------------------------------------
NO. OF
WARRANTS
WARRANTS (0.0%)
THAILAND (0.0%)
BANKS
Siam Commercial Bank PCL, expiring 5/10/02
(Cost U.S.$136) 1,727,300 123
-------------
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (2.3%)
--------------------------------------------------------------------------
REPURCHASE AGREEMENT
<S> <C> <C>
(a)Chase Securities, Inc., 6.25% dated
9/29/00, due 10/02/00
(Cost U.S.$17,101) U.S.$ 17,101 U.S.$ 17,101
-------------
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (0.3%)
<S> <C> <C> <C>
Australian Dollar AUD 313 169
Hong Kong Dollar HKD 60 8
Indian Rupee INR 140 3
Indonesian Rupiah IRP 200,600 23
Japanese Yen JPY 2,088 19
Malaysian Ringgit MYR 5,482 1,444
New Zealand Dollar NZD 77 31
South Korean Won KRW 1,071 1
Taiwan Dollar TWD 35,085 1,120
-------------
--------------------------------------------------------------------------
TOTAL FOREIGN CURRENCY
(Cost U.S.$2,826) 2,818
-------------
--------------------------------------------------------------------------
TOTAL INVESTMENTS (98.3%)
(Cost U.S.$666,591) 731,566
-------------
--------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.7%)
Other Assets U.S.$ 40,209
Liabilities (27,919) 12,290
-------------
--------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 57,665,974, issued and
outstanding U.S.$ 0.01 par value shares
(100,000,000 shares authorized) U.S.$ 743,856
-------------
--------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S.$ 12.90
-------------
</TABLE>
(a) -- The repurchase agreement is fully collateralized by U.S.
government and/or agency obligations based on market prices at the
date of this schedule of investments. The investment in the repurchase
agreement is through participation in a joint account with affiliated
funds.
(b)-- The fund is advised by an affiliate.
@ -- Value is less than U.S.$500.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
SEPTEMBER 30, 2000 EXCHANGE RATES:
--------------------------------------------------------------------------
<S> <C>
AUD Australian Dollar 1.846 = U.S. $1.00
HKD Hong Kong Dollar 7.780 = U.S. $1.00
INR Indian Rupee 45.980 = U.S. $1.00
IRP Indonesian Rupiah 8,755.000 = U.S. $1.00
JPY Japanese Yen 107.865 = U.S. $1.00
MYR Malaysian Ringgit 3.800 = U.S. $1.00
NZD New Zealand Dollar 2.453 = U.S. $1.00
KRW South Korean Won 1,115.150 = U.S. $1.00
TWD Taiwan Dollar 31.321 = U.S. $1.00
--------------------------------------------------------------------------
</TABLE>
11
