N-Q 1 a05-9806_2nq.htm N-Q

[Annotated Form N-Q]

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

 

 

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-08346

 

MORGAN STANLEY EASTERN EUROPE FUND, INC.

(Exact name of registrant as specified in charter)

1221 AVENUE OF THE AMERICAS 22ND FLOOR NEW YORK, NY

10020

(Address of principal executive offices)

(Zip code)

RONALD E. ROBISON
1221 AVENUE OF THE AMERICAS 33RD FLOOR NEW YORK, NY, 10020

(Name and address of agent for service)

 

 

 

Registrant’s telephone number, including area code:

1-800-221-6726

 

 

Date of fiscal year end:

12/31

 

 

Date of reporting period:

3/31/05

 

 


 

Item 1.  Schedule of Investments.

 

The Fund’s schedule of investment as of the close of the reporting period prepared pursuant to Rule 12-12 Regulation S-X is as follows:

 

Morgan Stanley Eastern Europe Fund, Inc.

First Quarter Report

March 31, 2005 (unaudited)

Portfolio of Investments

 

 

 

 

 

Shares

 

Value
(000)

 

COMMON STOCKS (97.9%)

 

 

 

 

 

 

 

(Unless Otherwise Noted)

 

 

 

 

 

 

 

Czech Republic (2.7%)

 

 

 

 

 

 

 

Pharmaceuticals

 

 

 

 

 

 

 

Zentiva N.V.

 

(a)

 

81,500

 

$

3,063

 

Hungary (3.0%)

 

 

 

 

 

 

 

Specialty Retail

 

 

 

 

 

 

 

Fotex Rt.

 

(a)

 

2,262,752

 

3,449

 

Kazakhstan (1.2%)

 

 

 

 

 

 

 

Oil & Gas

 

 

 

 

 

 

 

Nelson Resources Ltd.

 

(a)

 

864,400

 

1,322

 

Poland (23.4%)

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

 

 

Bank Pekao S.A.

 

(a)

 

78,171

 

3,449

 

Powszechna Kasa Oszczednosci Bank Polski S.A.

 

(a)

 

670,334

 

5,895

 

 

 

 

 

 

 

9,344

 

Diversified Telecommunication Services

 

 

 

 

 

 

 

Telekomunikacja Polska S.A.

 

 

 

400,000

 

2,695

 

Telekomunikacja Polska S.A. GDR

 

 

 

951,400

 

6,422

 

 

 

 

 

 

 

9,117

 

Food Products

 

 

 

 

 

 

 

ZM Duda S.A.

 

 

 

1,335,180

 

5,301

 

Media

 

 

 

 

 

 

 

Agora S.A.

 

(a)

 

144,448

 

2,700

 

 

 

 

 

 

 

26,462

 

Russia (46.6%)

 

 

 

 

 

 

 

Beverages

 

 

 

 

 

 

 

Baltika Brewery

 

 

 

326,864

 

6,320

 

Efes Breweries International N.V. GDR

 

(a)(b)

 

129,778

 

3,945

 

Efes Breweries International N.V. GDR

 

(a)

 

71,701

 

2,180

 

Wimm-Bill-Dann Foods OJSC ADR

 

(a)

 

264,600

 

5,115

 

 

 

 

 

 

 

17,560

 

Commercial Banks

 

 

 

 

 

 

 

Sberbank RF

 

 

 

5,490

 

3,256

 

Construction Materials

 

 

 

 

 

 

 

Alpha Cement JSC

 

(a)

 

356,500

 

5,526

 

Distributors

 

 

 

 

 

 

 

Kalina

 

 

 

58,750

 

1,422

 

Kalina ADR

 

(b)

 

32,100

 

777

 

 

 

 

 

 

 

2,199

 

 


 

Electrical Equipment

 

 

 

 

 

 

 

Siloviye Mashiny

 

(a)

 

115,645,000

 

6,707

 

Marine

 

 

 

 

 

 

 

Novorossiysk Shipping Co.

 

(a)

 

4,490,000

 

4,400

 

Metals & Mining

 

 

 

 

 

 

 

Highland Gold Mining Ltd.

 

 

 

620,268

 

2,403

 

MMC Norilsk Nickel ADR

 

 

 

47,000

 

2,743

 

Peter Hambro Mining plc

 

(a)

 

216,389

 

2,586

 

 

 

 

 

 

 

7,732

 

Oil & Gas

 

 

 

 

 

 

 

LUKOIL ADR

 

 

 

2,100

 

284

 

OAO Gazprom (Registered) ADR

 

 

 

21,485

 

724

 

Transneft (Preference)

 

 

 

1,600

 

1,376

 

 

 

 

 

 

 

2,384

 

Wireless Telecommunication Services

 

 

 

 

 

 

 

Mobile Telesystems ADR

 

 

 

85,600

 

3,012

 

 

 

 

 

 

 

52,776

 

Turkey (14.1%)

 

 

 

 

 

 

 

Beverages

 

 

 

 

 

 

 

Efes Sinai Yatirim Holding AS, ‘B’

 

 

 

903,051

 

5,408

 

Containers & Packaging

 

 

 

 

 

 

 

Anadolu Cam Sanayii AS

 

 

 

1,356,941

 

4,495

 

Industrial Conglomerates

 

 

 

 

 

 

 

Enka Insaat ve Sanayi AS

 

 

 

426,488

 

6,117

 

 

 

 

 

 

 

16,020

 

Turkmenistan (3.2%)

 

 

 

 

 

 

 

Oil & Gas

 

 

 

 

 

 

 

Dragon Oil plc

 

(a)

 

2,188,503

 

3,681

 

Ukraine (0.9%)

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

 

 

Stirol Concern ADR

 

(a)

 

7,650

 

496

 

Oil & Gas

 

 

 

 

 

 

 

Ukrnafta Oil Co. ADR

 

(a)

 

3,100

 

470

 

 

 

 

 

 

 

966

 

Uzbekistan (2.8%)

 

 

 

 

 

 

 

Metals & Mining

 

 

 

 

 

 

 

Oxus Gold plc

 

(a)

 

2,815,273

 

3,139

 

TOTAL COMMON STOCKS

 

 

 

 

 

 

 

(Cost $90,545)

 

 

 

 

 

110,878

 

 

 

 

 

 

Face
Amount
(000)

 

 

 

CORPORATE BOND (1.1%)

 

 

 

 

 

 

 

Russia (1.1%)

 

 

 

 

 

 

 

Wireless Telecommunication Services (1.1%)

 

 

 

 

 

 

 

MCSI Holding Ltd. (Secured Notes) 9.00%, 04/15/07 (Cost $1,328)

 

(c)

 

$

1,486

 

1,293

 

SHORT-TERM INVESTMENT (8.9%)

 

 

 

 

 

 

 

United States (8.9%)

 

 

 

 

 

 

 

Repurchase Agreement

 

 

 

 

 

 

 

J.P. Morgan Securities, Inc., 2.78%, dated 3/31/05, due 4/1/05, repurchase price $10,036 (Cost $10,035)

 

(d)

 

10,035

 

10,035

 

TOTAL INVESTMENTS + (107.9%) (Cost $101,908)

 

 

 

 

 

122,206

 

LIABILITIES IN EXCESS OF OTHER ASSETS (-7.9%)

 

 

 

 

 

(8,983

)

NET ASSETS (100%)

 

 

 

 

 

$

113,223

 

 

(a)

 

Non-income producing security

(b)

 

144A Security - Certain conditions for public sale mas exist. Unless otherwise noted, these securities are deemed to be liquid.

 

(c)

 

Security was valued at fair value - At March 31, 2005, the Fund held a fair valued security at $1,293,000, representing 1.14% of net assets.

(d)

 

Represents the Fund’s undivided interest in a joint repurchase agreement which has a total value of $955,894,000. The repurchase agreement was fully collateralized by U.S. government agency securities at the date of this Portfolio of Investments as follows: Federal Home Loan Mortgage Corp., Gold Pools: 4.00% to 7.50%, due 1/1/07 to 1/1/35; Federal National Mortgage Association, Conventional Pools: 4.00% to 8.50%, due 1/1/09 to 3/1/35; and Federal National Mortgage Association, Adjustable Rate Mortgages: 4.091% to 5.327%, due 3/1/34 to 5/1/38, which had a total value of $975,016,856. The investment in the repurchase agreement is through participation in a joint account with affiliated parties pursuant to exemptive relief received by the Fund from the SEC.

+

 

At March 31, 2005, the U.S. Federal income tax cost basis of investments was approximately $101,908,000 and, accordingly, net unrealized appreciation for U.S. Federal income tax purposes was $20,297,000 of which $22,005,000 related to appreciated securities and $1,708,000 related to depreciated securities.

ADR

 

American Depositary Receipt

GDR

 

Global Depositary Receipt

 

Foreign Currency Exchange Contracts Information:

The Fund had the following foreign currency exchange contract(s) open at period end:

 

Currency to
Deliver
(000)

 

Value
(000)

 

Settlement
Date

 

In Exchange For
(000)

 

Value
(000)

 

Net
Unrealized
Appreciation
(Depreciation)
(000)

 

USD

 

166

 

$

166

 

4/1/2005

 

HUF

 

31,800

 

$

167

 

$

1

 

USD

 

99

 

99

 

4/4/2005

 

HUF

 

18,962

 

99

 

—

@

USD

 

71

 

71

 

4/5/2005

 

HUF

 

13,565

 

71

 

—

@

 

 

 

 

$

336

 

 

 

 

 

 

 

$

337

 

$

1

 

 

HUF        - Hungarian Forint

USD        - U.S. Dollar

@            - Amount is less than $500.

 


 

Item 2.  Controls and Procedures.

 

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

 

(b)  There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

 

Item 3.  Exhibits.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)

Morgan Stanley Eastern Europe Fund, Inc.

 

By:

/s/ Ronald E. Robison

 

Name:

Ronald E. Robison

 

Title:

Principal Executive Officer

 

Date:

May 19, 2005

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:

/s/ Ronald E. Robison

 

Name:

Ronald E. Robison

 

Title:

Principal Executive Officer

 

Date:

May 19, 2005

 

 

 

 

By:

/s/ James Garrett

 

Name:

James Garrett

 

Title:

Principal Financial Officer

 

Date:

May 19, 2005