-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PFYdUXCo2tDRn9tq4v46yC8yKdgzwqouKinatEV6rF3HlTxDkF419FcURtGk6Ca4 cUK5bUaVP8Adgvl/7c8Rug== 0000814083-97-000003.txt : 19970605 0000814083-97-000003.hdr.sgml : 19970605 ACCESSION NUMBER: 0000814083-97-000003 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970604 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CLEMENTE GLOBAL GROWTH FUND INC CENTRAL INDEX KEY: 0000814083 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133407699 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-05150 FILM NUMBER: 97618859 BUSINESS ADDRESS: STREET 1: 237 PARK AVE STREET 2: C/O FURMAN SELZ CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2128083942 MAIL ADDRESS: STREET 1: 152 W 57TH ST 25TH FLOOR STREET 2: CARNEGIE HALL TOWER CITY: NEW YORK STATE: NY ZIP: 10019 N-30B-2 1 [Outside Cover -- divided into two sections] [Left Section] SUMMARY OF GENERAL INFORMATION ============================== THE FUND Clemente Global Growth Fund, Inc. is a closed-end investment company whose shares trade on the New York Stock Exchange. The Fund seeks long-term capital appreciation primarily through investment in small and medium sized equities located throughout the world. The Fund is managed by Clemente Capital, Inc. SHAREHOLDER INFORMATION Daily market prices for the Fund's shares are published in the New York Stock Exchange Composite Transactions section of most newspapers under the designation "ClemGlb". The Fund's New York Stock Exchange trading symbol is CLM. Net asset value (NAV) and market price information about Clemente Global Growth Fund, Inc. shares are published each Monday in The Wall Street Journal, The New York Times and other newspapers. For general information visit us at our web site http://www.clementecapital.com. For shareholder account inquiries call 1-800-937-5449. DIVIDEND REINVESTMENT PLAN Through its voluntary Dividend Reinvestment Plan, shareholders of Clemente Global Growth Fund, Inc. may elect to receive dividends and capital gains distributions in the form of additional shares of the Fund. - ----------------------------------------------------------------------- THIS REPORT IS TRANSMITTED TO THE SHAREHOLDERS OF CLEMENTE GLOBAL GROWTH FUND, INC. FOR THEIR INFORMATION. THIS IS NOT A PROSPECTUS, CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE PURCHASE OF SHARES OF THE FUND OR ANY SECURITIES MENTIONED IN THIS REPORT. NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH SECTION 23(C) OF THE INVESTMENT COMPANY ACT OF 1940 THAT THE FUND MAY PURCHASE AT MARKET PRICES FROM TIME TO TIME SHARES OF ITS COMMON STOCK IN THE OPEN MARKET. - --------------------------------------------------------------------------- [Right Section] [GRAPHIC] Clemente Logo CLEMENTE GLOBAL GROWTH FUND, INC. QUARTERLY REPORT ============= MARCH 31, 1997 DIRECTORS AND OFFICERS - LILIA C. CLEMENTE, CHAIRMAN AND DIRECTOR LEOPOLDO M. CLEMENTE, JR., PRESIDENT AND DIRECTOR ADRIAN C. CASSIDY, DIRECTOR THOMAS H. LENAGH, DIRECTOR + SAM NAKAGAMA, DIRECTOR + ROBERT B. OXNAM, DIRECTOR + G. PETER SCHIEFERDECKER, DIRECTOR BARON J.G.A. SIRTEMA VAN GROVESTINS, DIRECTOR WILLIAM H. BOHNETT, SECRETARY THOMAS J. PRAPAS, TREASURER MARIA DISTEFANO, ASSISTANT SECRETARY - ---------------- + Members of Audit Committee - ------------------------------------------------------- EXECUTIVE OFFICES - 152 W. 57th Street, New York, NY 10019 (For latest net asset value and market data, please call 212-765-0700 or access our web site at http://www.clementecapital.com. For shareholder inquiries, please call 1-800-937-5449) INVESTMENT ADVISER - Clemente Capital, Inc. ADMINISTRATOR - Rodney Square Management Corporation TRANSFER AGENT AND REGISTRAR - American Stock Transfer & Trust Company CUSTODIAN - Brown Brothers Harriman & Co. LEGAL COUNSEL - Fulbright & Jaworski L.L.P. INDEPENDENT ACCOUNTANTS - Price Waterhouse LLP May 15, 1997 DEAR FELLOW SHAREHOLDERS: With the help of a timely investment strategy, as well as more fundamental adjustments in the portfolio, the Fund outperformed its benchmark, the Financial Times Actuaries World Index (the "FT World Index"), during the first quarter ended March 31, 1997. The net asset value (NAV) for Clemente Global Growth Fund (CLM) rose 3.86% to $10.49 while the FT World Index had a gain of 0.07% in the same period. Total assets increased to about US $61.82 million at the end of the quarter, from US $59.52 million at December 31, 1996. The share price of CLM rose by 10%, from $7.50 at the start of the quarter, to $8.25 per share by the end of March 1997. During this period the discount to NAV decreased from 25.74% to 21.35%. Clemente Global Growth Fund's NAV was up 10.40% year-to-date through May 9, 1997 compared with a rise of 5.77% for the FT World Index. The Fund's recent improved performance reflects the benefits from the new proposed structure. Even before a formal relationship has begun for the management of the Fund, which requires shareholder approval, Clemente Capital has been working informally with Wilmington Trust to strengthen, through the use of new technology and a more integrated investment process, both country allocation and stock selection decisions. THE PORTFOLIO REVIEW With Wilmington Trust's assistance, the Fund's U.S. portfolio focuses on companies that have good prospects for steady growth in earnings over the next couple of years. Recent additions are Air Products, Air Touch, and Illinois Tool Works, which have generally outperformed a strong U.S. market. Their presence, in time, should be felt in both the improved performance and the dampened volatility of the portfolio. Short-term, a number of critical decisions were made. Although the Japanese market was down more than 12% during the first quarter, our holdings in Japan were focused on blue chip exporters, such as Honda and TDK, which performed very well in this period. We continue to broaden our Japanese stock selection, switching from blue chips to more domestic plays. Elsewhere in Asia, our holdings were largely limited to Hong Kong picks which were China plays, such as Cheung Kong Infrastructure. Europe was a story of overweighting induced by the prospects of economic recovery, declining inflation, steady interest rates, and corporate restructuring. Germany, a relatively safe haven in the sometimes turbulent surroundings of EMU, contributed three diverse winners: a universal bank (Bayerische Vereinsbank), a software company (SAP), and an industrial company specializing in graphite products (SGL Carbon). Other parts of Europe also produced strong performers, including Ireland (Bank of Ireland and Independent Newspapers), Holland (OCE Van Der Grinten, copier and printer systems), and Norway (Schibsted, publishing, and Smedvig, oil services). The emerging market allocation was focused on the strong performers of Latin America, particularly Brazilian companies in telecommunications (Telebras), power generation (Cemig) and mining (CVRD). LOOKING AHEAD We are confident that we can sustain and improve upon the recent outperformance of the portfolio. Global growth and inflation fundamentals remain very attractive, with U.S. monetary policy still the major potential disruption to the world's capital markets. Fears of a protracted tightening by the Federal Reserve are greatly exaggerated, and markets with strong or improving fundamentals will continue to perform well. We believe that we are well positioned in such markets, including the hard currencies of Europe, Germany, Holland, Switzerland - as well as in the faster growing economies of Ireland and Scandinavia. Our European holdings should be relative outperformers, with strong earnings flowing from both a cyclical recovery and from corporate restructuring. In sharp contrast to Europe, caution still prevails in the Pacific Rim, with Hong Kong and China's "red chip" equities dominating regional holdings. Our traditional strength in the region may soon get an opportunity to contribute to the outperformance of CLM. South Korea is looking increasingly attractive, in terms of both liquidity and valuations, Thailand's political, financial, and currency woes are being resolved, and the solid corporate earnings growth of the Philippines and Indonesia are again producing attractive valuations following the recent sell-off in the two markets. Also playing to our strength is the gradual recovery of the Japanese markets, spurred by an expected economic rebound and continued financial market reforms. Our strategy is well placed to invest in recovering property, and domestic restructuring issues. Our significant overweighting in Latin America will be maintained as economic recovery and reforms help the region stand out from most emerging markets, despite the risks associated with U.S. monetary tightening. Supported by an attractive equity market environment, and assisted by our partnership with Wilmington Trust in the management of the portfolio, we look forward to consistent competitive returns for the portfolio. Thank you for your on-going support of the Clemente Global Growth Fund. Sincerely yours, /s/ Lilia Clemente /s/ Leopoldo Clemente Lilia C. Clemente Leopoldo M. Clemente, Jr. Chairman President
SHARES/PRINCIPAL AMOUNT VALUE ---------------- ----- COMMON STOCK - 98.0% ARGENTINA - 0.9% Disco S.A. * Retail 50,000 $ 550,220 ---------- BRAZIL - 9.2% Companhia Energetica De Minas Gerais ADR Utilities 35,000 1,447,478 Companhia Vale Do Rio Doce ADR Mining 65,000 1,477,417 Telecomunicacoes Brasileiras S.A. ADR Telecommunications 27,000 2,764,125 --------- 5,689,020 --------- CANADA - 5.3% Newbridge Networks Corp. * Electrical/Electronics 38,800 1,110,650 Noranda, Inc. Metals 47,400 1,053,066 Power Corporation of Canada Holding Company 55,700 1,136,529 --------- 3,300,245 --------- FINLAND - 3.7% Merita, Ltd. Banking 347,000 1,183,398 Valmet Corp. Machinery 62,690 1,119,284 --------- 2,302,682 --------- FRANCE - 1.7% Alcatel Alsthom Telecommunications 8,700 1,043,557 --------- GERMANY - 6.6% Bayerische Vereinsbank AG Banking 37,000 1,522,570 SAP AG Computer Software 8,600 1,454,502 SGL Carbon AG Chemicals 8,200 1,118,271 --------- 4,095,343 --------- HONG KONG - 7.5% Cheung Kong Infrastructure Holdings, Ltd. Construction 380,000 1,073,959 Guangdong Investments Financial Services 1,500,000 1,287,279 Guangshen Railway Co., Ltd. * Transportation 2,600,000 1,124,031 Hutchinson Whampoa, Ltd. Real Estate 155,000 1,165,165 --------- 4,650,434 --------- IRELAND - 4.6% Bank of Ireland Banking 147,382 1,464,983 Independent Newspapers plc Publications 254,163 1,363,449 --------- 2,828,432 --------- JAPAN - 17.2% Bank of Tokyo-Mitsubishi Banking 84,000 $1,308,472 Canon, Inc. Electrical Equipment 75,000 1,604,114 Eisai Co., Ltd. Pharmaceuticals 59,000 1,009,522 Honda Motor Co. Autos 50,000 1,489,102 Itochu Corp. International Trade 100,000 489,103 Mitsubishi Estate Co., Ltd. Real Estate 44,000 468,764 Namco, Ltd. Leisure Product 34,300 935,705 Sumitomo Realty & Development Real Estate 250,000 1,678,770 TDK Corp. Electronics 24,000 1,646,486 ---------- 10,630,038 ---------- MEXICO - 3.3% Corporacion Interamericana de Entretenimiento S.A. Leisure Products 547,800 2,026,379 --------- NETHERLANDS - 4.2% Oce-Van Der Grinten N.V. Electrical Equipment 12,000 1,543,629 Vernidge Nederlandse Uitgevbedri Verigd Bezit Publications 50,000 1,022,517 --------- 2,566,146 --------- NORWAY - 4.4% Schibsted ASA Publications 70,900 1,432,280 Smedvig ASA (A Shares) Oil Integrated 41,300 1,021,106 Smedvig ASA (B Shares) Oil Integrated 10,325 249,050 --------- 2,702,436 --------- PERU - 2.9% CPT Telefonica del Peru S.A. (B Shares) Telecommunications 820,000 1,818,717 --------- PHILIPPINES - 1.7% Ayala Land, Inc. (B Shares) Real Estate 900,000 1,024,104 --------- SPAIN - 2.2% Vallehermoso S.A. Real Estate 59,000 1,368,139 --------- SWEDEN - 1.5% Trygg-Hansa AB (B Shares) Insurance 47,000 938,459 -------- SWITZERLAND - 3.2% Alusuisse-Lonza Holding AG Multi-Industry 1,200 1,005,305 Sulzer AG Engineering/Machinery 1,500 976,576 --------- 1,981,881 --------- THAILAND - 1.3% Bangkok Bank Co., Ltd. Banking 80,000 775,895 ------- UNITED KINGDOM - 1.2% BAA plc Business/Public services 91,680 770,244 ------- UNITED STATES - 15.4% Health Management Assoc., Inc.* Healthcare 50,000 1,187,500 Intel Corp. Semiconductors 23,000 3,199,875 Sunbase Asia, Inc.* Industrial Components 118,000 523,625 Sungard Data Systems, Inc.* Computer Services 30,000 1,305,000 Suntrust Banks, Inc. Banking 34,000 1,576,750 Worldcom, Inc. Telecommunications 78,400 1,724,800 ---------- 9,517,550 ---------- Total Common Stock (Cost $48,965,699) 60,579,921 ---------- TIME DEPOSIT - 4.4% BBH Cayman Time Deposit, 5.75%, 04/01/97(Cost $2,721,000) $2,721,000 2,721,000 --------- TOTAL INVESTMENTS (COST $51,689,699)** - 102.4% $ 63,300,921 OTHER ASSETS AND LIABILITIES, NET - (2.4)% (1,478,274) ------------- NET ASSETS - 100.0% $ 61,822,647 ============= NET ASSET VALUE PER SHARE $10.49 ====== ADR American Depository Receipts * Non-income Producing Security ** Summary of Total Investments: COST VALUE ---- ----- Common Stock $48,965,699 $60,579,921 Short-Term Investments 2,721,000 2,721,000 ----------- ----------- Total Investments $51,686,699 $63,300,921 =========== ===========
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