-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, nGE2UywsAELXtdKBCvZ1gmindOK8fWlhvYSNvtsr3l+GD5MiTptxkfk2rWH3uZyi aZnzcerUFAoZJpmOQ8jfUw== 0000900092-94-000415.txt : 19940815 0000900092-94-000415.hdr.sgml : 19940815 ACCESSION NUMBER: 0000900092-94-000415 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940812 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH BALANCED FD FOR INV & RET CENTRAL INDEX KEY: 0000746637 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-04035 FILM NUMBER: 94543524 BUSINESS ADDRESS: STREET 1: P O BOX 9011 CITY: PRINCETON STATE: NJ ZIP: 08543 BUSINESS PHONE: 6092823319 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH RETIREMENT BENEFIT INVESTMENT PROG INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH BALANCED FUND FOR INVESTMENT & RETIREMENT DATE OF NAME CHANGE: 19910529 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH RETIREMENT BENEFIT INVESTMENT PROGRAM INC DATE OF NAME CHANGE: 19910501 N-30B-2 1 QUARTERLY REPORT MERRILL LYNCH BALANCED FUND For Investment and Retirement FUND LOGO Quarterly Report June 30, 1994 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund's current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Merrill Lynch Retirement Benefit Investment Program, Inc. Full Investment Portfolio d/b/a Merrill Lynch Balanced Fund for Investment and Retirement Box 9011 Princeton, NJ 08543-9011 Merrill Lynch Balanced Fund for Investment and Retirement PORTFOLIO SUMMARY GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX: GRAPHIC AND IMAGE MATERIAL, ITEM 1. As of June 30, 1994 Percent of Currency Diversification Net Assets US Dollar 84.4% Mexican Peso 2.8 Australian Dollar 2.2 UK Sterling 2.0 Italian Lira 1.6 Canadian Dollar 1.4 Hong Kong Dollar 1.4 French Franc 1.0 Chilean Peso 0.6 German Mark 0.6 Argentinian Peso 0.5 Portuguese Escudo 0.4 Danish Krone 0.3 Japanese Yen 0.3 Spanish Peseta 0.2 Swedish Krona 0.2 Singaporean Dollar 0.1 Venezuelan Boliva 0.0 S&P US Common Stock Investments Fund 500* After Tax Profit Margin 7.1% 6.5% Yield 1.8% 2.6% Price/Earnings Ratio** 18.0 17.0 Return on Equity 21.1% 14.6% Average Capitalization (in billions) $7.2 $6.3 Earnings Growth Rate (5 yr. average) 9.0% 5.0% [FN] *An unmanaged broad-based index comprised of common stocks. **Based on 1994 earnings estimates. Merrill Lynch Fixed-Income Investments Fund BOAO Index* Duration 5.3 Years 5.4 Years Average Maturity 8.4 Years 9.6 Years Asset Breakdown: US Treasuries/Agencies 67.1% 76.0% Corporates 13.3% 24.0% International Governments 19.6% -- [FN] *An unmanaged market-weighted corporate and Government master bond index reflecting approximately 97% of total outstanding US bonds. DEAR SHAREHOLDER During the June quarter, the Fund's asset mix moved slightly to favor equities and bonds, at the expense of cash equivalents. In late June, most of the increase in equities followed stock price weak- ness. At June quarter-end, cash equivalents were 6.2% of net assets compared to 6.4% at the March quarter-end, while equities advanced from 57.3% to 58.4%, and bonds increased from 34.8% to 35.2%. Monthly statistics indicate that gross domestic product (GDP) growth slowed substantially from the torrid pace seen in fourth quarter 1993. The 3.3% first-quarter growth reflects consumer spending slowing from the average 4.0% pace of the last several quarters. The main factor responsible for the unsus- tainable level of GDP growth has been the extra- ordinary, but one time, benefit to the consumer from refinancing mortgage balances. But as mortgage rates have increased over 30% since last fall, from 6.7% to 8.8%, this key source of consumer liquidity has all but evaporated, and consumer spending naturally has slowed. Auto sales, believed to be one of the primary beneficiaries of this extra cash, slowed modestly in April, and second-quarter production schedules were reduced from the fourth-quarter and first-quarter pace. Furthermore, employment gains, which have been below average during this cycle, are being affected. Evidence of the slower employ- ment market can be seen in the recent announce- ment of layoffs in several well-known mortgage companies. This is not to suggest that the danger is now one of recession, but that the economy seems to have settled down to a non-inflationary growth rate of roughly 3.0%. Given the Federal Reserve Board's tightening over the last several months and the lack of growth in the money supply, we believe a tighter monetary policy has been put on hold for the near term. Despite the financial market volatility witnessed in the past quarter, we believe the US economy is fundamentally sound. Inflation, as measured by the standard indexes, remains low. Companies, facing steep competition, are still hungry for productivity gains. The number of layoffs continues to be amaz- ingly high; wages for major state and local govern- ment bargaining pacts are increasing at nearly record lows. Personal computer prices are being cut, airfares are still being slashed, and cable TV rates are set to be reduced again. Consumers benefit daily from price competition in industries as diverse as garbage hauling, telephone service and super- markets. But since most investors, we believe, were surprised by the Federal Reserve Board's preemptive moves against inflation beginning in early February, no stone is being left unturned in efforts to confirm or deny the presence of inflation. We cannot dismiss the rapid rise in the Commodity Research Bureau Price Index or the weakness in the US dollar. But most manufacturers feel they have little pricing power, and it remains to be seen if these cost increases can be passed on to the consumer. Increased use of derivatives and speculative over- leveraged hedge funds have been cited as causes for the increased volatility and a reason for the Federal Reserve Board's tightening moves in the first half of 1994. But it seems more likely that long-term interest rates overshot on the low side last fall, and the fixed- income markets may have overreacted this spring, driving real long-term interest rates about 2% above average. With economic data showing final demand slowing in the second quarter, inflation subdued, and perhaps the worst of the increase in short-term interest rates behind us, there appears to be room for a modest bond market rally. Assuming GDP growth of 2.5%--3.0% and inflation around 3.0%, the long-term bond could be back down to near 6.75% by the end of the year. Investment Strategy In the very short run, equity markets may not fare as well. First, the equity markets did not correct as severely as the bond markets, as investors focused on the benefits to earnings from a stronger growing economy. Therefore, equity valuations may be rela- tively more expensive compared to 7.6% yielding bonds. Perhaps more importantly though will be the effect of a slower growing economy on corporate profits. First quarter S&P 500 earnings were lower than expected and down sequentially from the fourth quarter on a seasonally adjusted annual rate basis, reflecting the economic slowdown. Considering the effect of higher interest rates on future earnings, 1994 and 1995 estimates are being revised downward. Since the March quarter we have reversed our think- ing on cyclical and interest rate sensitive stocks. We believe the Federal Reserve Board's tightening is largely over, and we expect credit sensitive stocks to perform better. If the economy is not growing as robustly as previously thought, volume, pricing and earnings growth for the deeper cyclical stocks may not be as strong as hoped. Therefore, we shifted assets from deep cyclicals to credit-sensitive sectors while maintaining our overweighted position in tech- nology that enhances productivity and reduces cost. International markets have been particularly dis- quieted by the backup in US interest rates, and contrary to expectations, the weakness in the dollar relative to the Japanese yen and Deutsche- mark. Why is it that with the US economy growing and interest rates moving high, the currency is weaker? Is it all in response to an unfavorable trade balance and the outflow of US investment capital? Perhaps concern expressed in the press over the inflationary impact of the Administration's proposed solution to the social and economic problems is eroding confidence in the purchasing power of the dollar. Or reports that US officials are "talking down" the dollar versus the Japanese yen to effect trade policy is responsible. Alternatively, the blame for a weak dollar could be laid at the feet of a low confi- dence level in US foreign policy as it pertains to Japan and China or repeated reports of the Presi- dent's personal problems. Despite coordinated efforts several weeks ago, and again recently, we are un- certain that the US currency has stabilized. This has impacted the markets in other countries where the currency is related to the US dollar, such as Hong Kong, Mexico, and Argentina. We believe that stabilization of US interest rates and a more stable foreign exchange market will yield stronger equity markets in countries whose curren- cies are directly or indirectly tied to the US dollar. This would have a significant favorable impact on this portfolio, which holds many such investments. In Conclusion We appreciate your continued support of Merrill Lynch Balanced Fund for Investment and Retire- ment, and we look forward to sharing our strategy with you in our upcoming quarterly report to shareholders. Sincerely, (Arthur Zeikel) Arthur Zeikel President (Denis B. Cummings) Denis B. Cummings Vice President and Portfolio Manager July 25, 1994 OFFICERS AND DIRECTORS Arthur Zeikel, President and Director Kenneth S. Axelson, Director Herbert I. London, Director Robert R. Martin, Director Joseph L. May, Director Andre F. Perold, Director Terry K. Glenn, Executive Vice President Bernard J. Durnin, Senior Vice President Donald C. Burke, Vice President Denis B. Cummings, Vice President and Portfolio Manager Gerald M. Richard, Treasurer Jerry Weiss, Secretary Custodian National Westminster Bank NJ 10 Exchange Place Jersey City, New Jersey 07302 Transfer Agent Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, Florida 32246-6484 (800)637-3863 PERFORMANCE DATA None of the past results shown should be considered a representation of future performance. Investment return and principal value of Class A and Class B Shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance Summary--Class A Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* %Change** 10/27/88--12/31/88 $11.18 $10.78 $0.008 $0.364 - 0.23% 1989 10.78 11.93 -- 0.767 +18.12 1990 11.93 10.57 0.377 0.719 - 2.31 1991 10.57 12.85 -- 0.457 +26.40 1992 12.85 12.08 0.745 0.546 + 4.16 1993 12.08 12.33 1.013 0.604 +15.93 1/1/94--6/30/94 12.33 11.36 -- -- - 7.87 ------ ------ Total $2.143 Total $3.457 Cumulative total return as of 6/30/94: +61.90%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date, and do not include sales charge; results would be lower if sales charge was included.
Performance Summary--Class B Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* %Change** 11/29/85--12/31/85 $10.00 $10.19 -- -- + 1.90% 1986 10.19 11.03 $0.280 $0.250 +13.53 1987 11.03 10.52 0.222 0.496 + 1.75 1988 10.52 10.78 0.008 0.582 + 8.14 1989 10.78 11.95 -- 0.634 +17.01 1990 11.95 10.64 0.377 0.547 - 3.30 1991 10.64 12.93 -- 0.329 +24.96 1992 12.93 12.18 0.745 0.409 + 3.19 1993 12.18 12.44 1.013 0.467 +14.67 1/1/94--6/30/94 12.44 11.41 -- -- - 8.28 ------ ------ Total $2.645 Total $3.714 Cumulative total return as of 6/30/94: +95.34%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all capital gains distributions at net asset value on the ex-dividend date, and do not reflect deduction of any sales charge; results would be lower if sales charge was deducted.
Average Annual Total Return %Return Without %Return With Sales Charge Sales Charge** Class A Shares* Year Ended 6/30/94 +1.76% -4.86% Five Years Ended 6/30/94 +8.16 +6.71 Inception (10/27/88) through 6/30/94 +8.86 +7.58 [FN] *Maximum sales charge is 6.5%. **Assuming maximum sales charge. %Return %Return Without CDSC With CDSC** Class B Shares* Year Ended 6/30/94 +0.71% -2.85% Five Years Ended 6/30/94 +7.06 +7.06 Inception (11/29/85) through 6/30/94 +8.11 +8.11 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. PERFORMANCE DATA (concluded) Recent Performance Results*
12 Month 3 Month 6/30/94 3/31/94 6/30/93 %Change %Change ML Balanced Fund Class A Shares $11.36 $11.67 $12.68 -2.87%(1) -2.66% ML Balanced Fund Class B Shares 11.41 11.75 12.72 -2.82(1) -2.89 ML Balanced Fund Class A Shares--Total Return +1.76(2) -2.66 ML Balanced Fund Class B Shares--Total Return +0.71(3) -2.89 S&P 500/ML BOAO Blended Index--Total Return** +0.11 -0.43 *Investment results shown for the 3-month and 12-month periods are before the deduction of any sales charge. **An unmanaged broad-based index comprised of corporate bonds, government bonds and common stocks. Total investment returns for unmanaged indexes are based on estimates. (1)Percent change includes reinvestment of $1.013 per share capital gains distributions. (2)Percent change includes reinvestment of $0.604 per share ordinary income dividends and $1.013 per share capital gains distributions. (3)Percent change includes reinvestment of $0.467 per share ordinary income dividends and $1.013 per share capital gains distributions.
PORTFOLIO INFORMATION Ten Largest Equity Holdings Percent of As of June 30, 1994 Net Assets Singer Co. N.V.(ADR) 3.1% Wheelabrator Technologies, Inc. 2.7 Computer Sciences Corp. 2.4 Telefonos de Mexico, S.A. de C.V.(ADR) 1.8 CSX Corp. 1.7 Sunbeam-Oster Inc. 1.7 Danka Business Systems PLC(ADR) 1.6 ADC Telecommunications, Inc. 1.5 MCI Communications Corp. 1.3 Grupo Carso, S.A. de C.V.(ADR) 1.3 SCHEDULE OF INVESTMENTS
Face Percent of Industries Amount* Corporate Bonds Cost Value Net Assets Financial $ 10,000,000 Ford Capital BV, 9.375% due 1/01/1998 $ 10,037,900 $ 10,559,390 1.4% Services 5,000,000 Landeskreditbank, N.V., 7.875% due 4/15/2004 4,972,068 4,993,750 0.7 Financial 10,000,000 American General Financial Corp., 7.38% Services-- due 5/13/1997 9,993,200 10,025,000 1.3 Consumer Tobacco 10,000,000 Philip Morris Companies, Inc., 7.75% due 5/01/1999 9,975,000 9,937,500 1.3 Total Investments in Corporate Bonds 34,978,168 35,515,640 4.7 Country US Government & Agency Obligations United States Federal Home Loan Mortgage Corp., REMIC (a): 4,910,000 1243-HP, 5.625% due 11/25/2015 4,788,017 4,498,788 0.6 20,000,000 FHG 16PH, 6.75% due 5/25/2022 20,262,500 17,646,875 2.3 25,000,000 Federal National Mortgage Association, 7.00% due 6/25/2023 23,656,250 22,773,438 3.0 US Treasury Notes: 55,000,000 7.875% due 8/15/2001 53,943,600 57,079,715 7.6 25,000,000 6.25% due 2/15/2003 25,710,938 23,332,025 3.1 35,000,000 5.75% due 8/15/2003 36,432,813 31,346,875 4.2 22,000,000 US Treasury STRIPS++, 6.81% due 5/15/2000(b) 15,827,436 14,596,384 1.9 Total Investments in US Government & Agency Obligations 180,621,554 171,274,100 22.7 Foreign Obligations Australia A$ 13,100,000 Queensland Treasury Corp., Global, 8.00% due 7/14/1999 9,812,507 9,076,146 1.2 Canada C$ 14,500,000 Government of Canada, 7.25% due 6/01/2003 10,739,024 9,315,253 1.2 Germany DM 7,000,000 Bundes, 6.375% due 5/20/1998 4,282,318 4,392,066 0.6 Italy Buoni Poliennali del Tesoro: Lit 5,050,000,000 9.00% due 10/01/1998 3,073,203 3,043,770 0.4 12,500,000,000 10.00% due 8/01/2003 7,957,684 7,557,809 1.0 5,000,000 Republic of Italy, 8.75% due 2/08/2001 5,373,050 5,215,985 0.7 Mexico Mxp 45,013,640 Mexican Cetes, 9.04% due 9/07/1995(b) 12,684,538 11,073,887 1.5 United UK Treasury Gilt: Kingdom Pound 1,350,000 8.75% due 9/01/1997 2,267,919 2,137,120 0.3 Sterling 4,500,000 8.00% due 6/10/2003 7,536,136 6,711,331 0.9 Total Investments in Foreign Obligations 63,726,379 58,523,367 7.8 Total Investments in Corporate Bonds, US Government & Agency & Foreign Obligations 279,326,101 265,313,107 35.2
SCHEDULE OF INVESTMENTS (continued)
Shares Percent of Industries Held US Stocks & Warrants Cost Value Net Assets Basic Industry Chemicals 90,000 Du Pont (E.I.) de Nemours & Co. $ 5,154,586 $ 5,253,750 0.7% 65,900 IMC Fertilizer Group, Inc. 2,895,903 2,281,788 0.3 110,000 Rohm & Haas Co. 5,970,927 6,847,500 0.9 Packaging 150,000 Crown Cork & Seal Co., Inc. 4,484,320 5,587,500 0.7 Paper & Forest 123,000 Scott Paper Co. 5,266,914 6,426,750 0.9 Producers 100,000 Willamette Industries, Inc. 3,735,500 4,275,000 0.6 Total Basic Industry 27,508,150 30,672,288 4.1 Capital Spending Auto & Truck 155,000 Consorcio G Groupo Dina, S.A. de C.V. (ADR)(d)(1) 2,506,119 1,627,500 0.2 Communication 285,000 ADC Telecommunications, Inc. 9,629,565 11,471,250 1.5 Equipment 270,000 DSC Communications Corp. 7,169,181 5,265,000 0.7 120,000 Motorola, Inc. 6,103,380 5,340,000 0.7 120,000 Tellabs, Inc. 2,539,049 3,690,000 0.5 Computer Services 435,000 Computer Sciences Corp. 12,394,300 18,106,875 2.4 Electrical Equipment 150,000 Siebe PLC(1) 1,309,386 1,266,442 0.2 90,000 W.W. Grainger 5,800,927 5,748,750 0.8 Electronics 210,000 Solectron Corp. 5,168,718 5,328,750 0.7 Engineering & 250,000 Empresas ICA Sociedad Controladora, S.A. de C.V. Construction (ADR)(d)(1) 4,923,925 6,000,000 0.8 477,300 Huntington International Holdings PLC (ADR)(d)(1) 11,817,686 2,744,475 0.4 Environmental 1,100,000 Wheelabrator Technologies, Inc. 12,362,975 20,487,500 2.7 Control Miscellaneous-- 230,000 Thermo Electron Corp. 9,443,299 8,567,500 1.1 Capital Goods Multi--Industry 200,000 Allied-Signal Inc. 6,438,764 6,925,000 0.9 Office Equipment 305,000 Danka Business Systems PLC(ADR)(d)(1) 9,489,019 12,161,875 1.6 Precision 50,000 Perkin Elmer Corp. 1,959,750 1,462,500 0.2 Instruments Software 90,000 Novell Inc. 1,658,381 1,496,250 0.2 Total Capital Spending 110,714,424 117,689,667 15.6
SCHEDULE OF INVESTMENTS (continued)
Shares Percent of Industries Held US Stocks & Warrants Cost Value Net Assets Consumer Goods & Services Appliances 675,000 Singer Co. N.V.(ADR)(d)(1) $ 17,730,688 $ 23,625,000 3.1% 639,500 Sunbeam-Oster Inc. 12,710,739 12,790,000 1.7 Automotive 125,000 Ford Motor Co. 7,344,870 7,375,000 1.0 Automotive 170,000 Magna International Inc.(ADR)(d)(1) 8,422,475 6,800,000 0.9 Equipment Beverages 19,100 PanAmerican Beverage Inc.(ADR)(d)(1) 487,050 460,788 0.1 Consumer-- 90,000 Duracell International Inc. 3,713,033 3,510,000 0.5 Miscellaneous Consumer--Services 180,000 Block(H & R),Inc. 7,774,923 7,065,000 0.9 Health Care 420,000 Humana Inc. 7,781,015 6,772,500 0.9 265,000 Physician Corp. of America 5,482,809 5,962,500 0.8 100,000 US Healthcare, Inc. 4,154,253 3,700,000 0.5 40,000 Vivra Inc. 727,950 960,000 0.1 Household Products 180,000 Procter & Gamble Co. 9,945,560 9,607,500 1.3 Printing & Publishing 75,000 Gannett Co. 3,866,114 3,712,500 0.5 Retail 75,000 Phillips-Van Heusen Corp. 1,721,463 1,884,375 0.2 Tires & Rubber 140,000 Bandag, Inc.(Class A) 6,400,395 6,475,000 0.9 250,000 Cooper Tire & Rubber Co. 5,939,187 5,781,250 0.8 Total Consumer Goods & Services 104,202,524 106,481,413 14.2 Credit-Sensitive & Financial Services Banking 60,000 Banco Frances del Rio de la Plata S.A. (ADR)(d)(1) 2,038,543 1,342,500 0.2 165,000 BankAmerica Corp. 7,440,617 7,548,750 1.0 200,000 Bank of New York Co. 5,581,161 5,775,000 0.8 122,500 Espirito Santo Financial Holding S.A. (ADR)(d)(1) 3,447,435 3,307,500 0.4 130,000 Grupo Financiero Serfin S.A.(ADR)(d)(1) 3,204,369 2,291,250 0.3 Insurance 110,000 International Telephone & Telegraph Corp. 9,403,546 8,978,750 1.2 Total Credit-Sensitive & Financial Services 31,115,671 29,243,750 3.9 Energy Energy--Related 350,000 California Energy Co., Inc. 6,244,403 5,775,000 0.8 Oil--Integrated 110,000 Mobil Oil Corp. 8,561,728 8,978,750 1.2 45,000 Phillips Petroleum Co. 1,275,741 1,406,250 0.2 70,000 Royal Dutch Petroleum Co.N.V.(ADR)(d)(1) 6,155,380 7,323,750 1.0 Total Energy 22,237,252 23,483,750 3.2
SCHEDULE OF INVESTMENTS (continued)
Shares Percent of Industries Held US Stocks & Warrants Cost Value Net Assets Transports Railroads 175,000 CSX Corp. $ 15,152,974 $ 13,212,500 1.7% 270,000 Southern Pacific Rail Co. 5,596,644 5,298,750 0.7 Total Transports 20,749,618 18,511,250 2.4 Utilities Utilities-- 49,100 ALC Communications Inc. 1,456,673 1,509,825 0.2 Communications 180,000 GTE Corp. 5,790,102 5,670,000 0.7 515,750 LDDS Communications Inc.(Class A) 11,447,075 8,896,687 1.2 450,000 MCI Communications Corp. 12,779,976 9,956,250 1.3 170,000 Southwestern Bell Corp. 7,282,605 7,395,000 1.0 70,000 Sprint Corp. 2,594,900 2,441,250 0.3 250,000 Telefonos de Mexico, S.A. de C.V.(ADR)(d)(1) 10,936,674 13,968,750 1.8 Total Utilities 52,288,005 49,837,762 6.5 Total Investments in US Stocks & Warrants 368,815,644 375,919,880 49.9 Foreign Stocks & Warrants Argentina Banking 40,000 Banco de Galicia y Buenos Aires S.A.(ADR)(d)(1) 1,261,974 1,070,000 0.1 Utilities-- 560,000 Telecom Argentina S.A.(Class B) 3,305,379 2,906,613 0.4 Communications Australia Banking 335,942 National Australia Bank Ltd. 2,106,640 2,693,816 0.4 Media/Publishing 80,000 News Corp.(ADR)(d) 4,079,037 3,860,000 0.5 Multi--Industry 300,948 Pacific Dunlop, Ltd. 1,129,136 945,064 0.1 Retail 189,000 Coles Myer Ltd.(Warrants)(c) 562,581 85,577 0.0 Canada Appliances 280,000 International Semi-Tech Microelectronics, Inc.(Receipts)(e) 1,806,344 1,013,025 0.1 Retail Stores 50,000 Hudson's Bay Company(Ordinary) 1,529,050 976,845 0.1 Chile Banking 57,000 Banco O'Higgins(ADR)(d)(1) 837,114 1,011,750 0.1 Utilities--Electric 96,600 Distribuidora Chilectra Metropolitana S.A. (ADR)(d) 2,696,793 4,075,071 0.5 Denmark Utilities-- 80,000 Tele Danmark A/S 1,882,080 1,970,000 0.3 Communications
SCHEDULE OF INVESTMENTS (continued)
Shares Percent of Industries Held Foreign Stocks & Warrants Cost Value Net Assets France Insurance 42,900 Compagnie UAP $ 1,165,352 $ 1,110,107 0.1% Oil--Integrated 149,100 Societe Nationale Elf Aquitaine(ADR)(d) 5,303,144 4,957,575 0.7 Utilities--Water 3,750 Compagnie Generale des Eaux 1,401,331 1,509,546 0.2 Hong Kong Banking 283,415 HSBC Holdings PLC 1,715,599 3,098,534 0.4 Electrical 1,300,000 Johnson Electric Co. 2,603,189 3,044,378 0.4 Equipment Multi--Industry 660,000 Hutchison Whampoa, Ltd. 1,685,630 2,711,217 0.4 Real Estate 225,000 Wharf Holdings Ltd. 948,314 829,667 0.1 Retail 500,000 Dairy Farm International Holdings Ltd. 866,896 692,198 0.1 Italy Banking 90,000 Istituto Mobilare (ADR)(d)(1) 1,976,579 1,800,000 0.2 Japan Chemicals 65,000 Sekisiu Chemical Co. 663,408 758,498 0.1 Electronics 90,000 Mitsubishi Electric Corp. 556,016 611,872 0.1 Tools 30,000 Makita Electric Work 609,699 611,872 0.1 Mexico Multi--Industry 540,000 Grupo Carso, S.A. de C.V.(ADR)(d)(1) 4,762,950 9,652,500 1.3 Portugal Banking 100,000 Banco Commercial Portugal(New)(ADR)(d) 1,342,303 1,212,500 0.2 97,000 Banco Commercial Portugal(Registered) 1,233,051 1,206,527 0.2 Singapore Beverages 65,000 Fraser & Neave Ltd.(Ordinary) 730,745 716,771 0.1 Spain Oil--Integrated 60,000 Repsol S.A. 1,616,190 1,728,000 0.2 Sweden Telecommunications 30,000 Ericsson(LM)Telephone Co. 1,530,000 1,485,000 0.2
SCHEDULE OF INVESTMENTS (concluded)
Shares Percent of Industries Held Foreign Stocks & Warrants Cost Value Net Assets United Kingdom Financial Services 100,000 Reuters Holding PLC(ADR)(d) $ 2,571,186 $ 3,900,000 0.5% Multi--Industry 50,000 Hanson PLC Sponsored(ADR)(d) 1,106,687 918,750 0.1 Oil--Integrated 20,000 British Petroleum Co. PLC(ADR)(d) 1,423,075 1,435,000 0.2 Venezuela Automobile Parts 657,500 Siderurgica Venezolana(SIVENSA) S.A.I.C.A.-S.A.C.A.(ADR)(Warrants)(c)(d) 1,544,625 19,725 0.0 Total Investments in Foreign Stocks & Warrants 58,552,097 64,617,998 8.5 Total Investments in US & Foreign Stocks & Warrants 427,367,741 440,537,878 58.4 Face Amount* Short-Term Securities Commercial $37,248,000 General Electric Capital Corp., 4.30% Paper** due 7/01/1994 37,248,000 37,248,000 4.9 10,000,000 Xerox Credit Corp., 4.26% due 7/20/1994 9,977,516 9,977,516 1.3 Total Investments in Short-Term Securities 47,225,516 47,225,516 6.2 Total Investments $ 753,919,358 753,076,501 99.8 ============= Other Assets Less Liabilities 1,534,955 0.2 ------------ ------ Net Assets $754,611,456 100.0% ============ ====== Net Asset Value: Class A--Based on net assets of $38,344,557 and 3,375,270 shares outstanding $ 11.36 ============ Class B--Based on net assets of $716,266,899 and 62,799,743 shares outstanding $ 11.41 ============ (a)Real Estate Mortgage Investment Conduits (REMIC). (b)Represents the yield-to-maturity on this zero coupon issue. (c)Warrants entitle the Fund to purchase a predetermined number of shares of common stock. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date. (d)American Depositary Receipt (ADR). (e)Receipts evidence payment by the Fund of 40% of the pur- chase price of Class A Shares of International Semi-Tech Microelectronics, Inc. The Fund is obligated to pay the remaining 60%, approximately $2,700,000 over the next two years. *Denominated in US dollars unless otherwise indicated. **Commercial Paper is traded on a discount basis; the interest rates shown are the discount rates paid at the time of purchase by the Fund. ++Separate Trading of Registrated Interest and Principal of Securities (STRIPS). (1)Consistent with the general policy of the Securities and Exchange Commission, the nationality or domicile of an issuer for determina- tion of foreign issuer status may be (i) the country under whose laws the issuer is organized, (ii) the country in which the issuer's securities are principally traded, or (iii) the country in which the issuer derives a significant proportion (at least 50%) of its revenue or profits from goods produced or sold, investments made, or services performed in the country, or in which at least 50% of the assets of the issuer are situated.
APPENDIX, GRAPHIC AND IMAGE MATERIAL. Item 1: Portfolio Summary A bar graph depicting the Fund's sector representation as a percentage of equities as of June 30, 1994. Basic Industry 8.2% Consumer Goods & Services 28.3% Capital Spending 31.3% Energy 6.2% Credit-Sensitive & Transports 4.9% Financial Services 7.8% Utilities 13.3% A bar graph depicting the Fund's security diversification as of June 30, 1994. Stocks 58.4% US 49.9% Non US 8.5% Bonds 35.2% US 28.1% Non US 7.1% Cash & Cash Equivalents 6.4% -----END PRIVACY-ENHANCED MESSAGE-----