-----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, FFwZdvZhG5pNNKJfOtOHNKfKCA8MNvUgUSKRLiY6zMLsXxWJGk+g0ZTwpD68PuW8 KLjUHFbQoEKDB41ma3MgjA== 0000950123-95-001465.txt : 19950530 0000950123-95-001465.hdr.sgml : 19950530 ACCESSION NUMBER: 0000950123-95-001465 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950518 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CLEMENTE GLOBAL GROWTH FUND INC CENTRAL INDEX KEY: 0000814083 STANDARD INDUSTRIAL CLASSIFICATION: 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: 95540703 BUSINESS ADDRESS: STREET 1: 237 PARK AVE STREET 2: C/O FURMAN SELZ CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2128083942 N-30B-2 1 CLEMENTE GLOBAL GROWTH FUND QUARTERLY REPORT 1 - - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS - - -------------------------------------------------------------------------------- May 3, 1995 Dear Fellow Shareholder: Clemente Global Growth Fund's net asset value (NAV) slid 6.1% in the first three months of 1995 to $10.06/share. Our exposure to the emerging markets continued to hurt the NAV as worries over the Mexican crisis unjustifiably spread to other developing markets, especially those of the Asia/Pacific Rim region. The Fund's benchmark, the Financial Times Actuaries World Index, strengthened 4.0% over the same period, mainly on the back of strong US performance (+8.9%) and currency appreciation (versus the US dollar) across Europe. So pronounced were these two factors that the FT-World Index (excluding the US) was actually down 8.8% for the quarter in local terms. THE PAST QUARTER The concerns of late 1994 carried over into the first quarter of this year. The Mexican crisis set the tone early in the quarter. Subsequent comparisons were inescapable especially since one could find among some Asian nations of the Pacific Rim current account deficits, large foreign debt levels, and, despite generally high levels of savings, a significant dependence on foreign funds. Such considerations, along with worries about the falling dollar and the resulting implications for interest rates in the US, produced much consternation in Asian markets for most of the quarter. Adding to investor uneasiness was yen strength and its likely impact on Japanese and regional economic strength. The story in Europe has been a little better for dollar-based investors but largely because of currency gains. Positive local returns were turned in by only two markets in Europe, and both were rather unremarkable: UK equities gained 2.5% and Irish stocks a scant 0.5%. The strong D-Mark and the need to defend currencies with higher interest rates produced volatile, and generally bearish markets. The surprise easing by the Bundesbank toward the end of the quarter gave some heart to the markets, but worrisome questions about the future of interest rates and the pace of economic recovery remained to plague equity investors. Questions of debt or deficits added to uncertainty, from time to time, in Belgium, Italy, Spain, and Sweden. A presidential campaign held back France, while the UK was constrained by the slow disintegration of the Tory Party. Latin America has not been able to shake the deflationary forces unleashed by the Mexican peso collapse. Argentina's currency link to the US dollar is a matter of great concern, despite the government's restatement of its commitment to a mixed currency policy; quite simply, investors have doubts about the ability of the nation to put up with the economic slowdown that would be needed to correct the balance of payment deficits that threaten the currency. Brazil has not been able to be untracked, as investors wait for the constitutional amendments that are needed for the next stage of economic reform. Mexico's market fell 23% despite gains of more than 18% in March, and the peso's weakness produced an even more alarming 43.4% drop in US dollars. Canada staged a modest rally, up 2.4%, as the economy remained strong, inflation was subdued, the fiscal imbalances improved, and the separatist forces were temporarily quelled. THE PORTFOLIO Reducing our weighting in the emerging markets, we sold our sole positions in Argentina, China, Hong Kong, India, Indonesia, Malaysia, and Turkey, while adding only modestly to the Philippines. These assets were re-allocated to the developed markets where our weighting rose from 67%, at the end of last year, to 75% in the first quarter. We exited Australia and Norway (primarily bottom up decisions), while beefing up our Canadian, Finnish, Irish, South African and US exposure. Our Japanese weighting remained somewhat constant (29.2% in the fourth quarter of 1994 vs. 28.1% in the first quarter of 1995) but was marked by a reduction in small capitalization stocks and an increase in bigger, medium- 1 2 capitalization stocks. At the end of the first quarter of 1995, the Fund was 75.3% invested in developed markets and 23.9% invested in emerging markets. LOOKING AHEAD Sharp contradictions are not expected in 1995, but talk shifts increasingly to a slowdown in economic activity. The US economy, whose strong economic gains benefited the rest of the world, is beginning to respond to the progressive tightening of monetary policy. A deceleration of growth is underway, with real GDP gains likely falling to 3% in the first quarter, and then under 2.5% for the remainder of the year. No further increases in rates are likely before summer, and they are not likely to come at all unless growth appears to be rebounding, or if dollar weakness persists and is finally seen as potentially inflationary. Europe's gains are threatened by the fall of the dollar, in part because their competitiveness is eroded relative to the US and much of Asia, but more importantly, as a result of the currency tensions that are generated by the dollar's decline against the D-Mark. The pressure to tighten will pick-up in the second half of the year, as the German economy grows above trend, and wage settlements are seen as moderately inflationary. Nations already struggling with loss of credibility because of debt/deficit burdens or higher inflation -- e.g. Italy, Spain, Sweden -- have weakening currencies as another source of upward pressure on interest rates. Mexico is almost certainly headed for a serious recession, and Argentina will greatly curtail spending in order to defend the peso-US dollar link. Brazil must navigate domestic shoals, in the form of constitutional amendments, in order to push forward the reforms that are needed for sustained economic growth. Overall, the original expectation of growth exceeding 3.5% for the region in 1995 may have to give way to much diminished prospects of 1.5 -- 2.0%. Japan has little room to maneuver with interest rates, given an official discount rate of 1%, but the Bank of Japan can, and probably will, increase the level of liquidity in order to boost asset prices and avert a double-dip recession. In much of Asia, monetary policy will be cautious, with a bias toward moderate tightening, as fast moving economies threaten to overheat. These markets, home of the most dynamic economies in the world, will experience some deceleration in growth in 1995. Average growth in the region will likely fall by about 1 percentage point, from above 8% to above 7%. Prospects for global equity markets look promising. The consolidation of Asian markets in 1994 has given corporate earnings a chance to catch up with the overvalued levels of late 1993/early 1994. Valuations of these markets are generally back to their early 1993 levels. Recovery in Europe should be led by a rebound in corporate profits. Slower growth in the US will moderate earnings but should be mitigated somewhat by increased international competitiveness. All in all, there is no reason for great gloom in 1995. OECD growth will remain above trend (2.5-3.0%), and the US economy, although set to slip below long-term potential later this year, will not face the risk of recession until 1996. While growth in the Asian Pacific Rim should slow, it remains one of the most dynamic regions for investments. Opportunities for worldwide growth investing still abound and it has been our ongoing effort to exploit these opportunities for the fullest benefit of our shareholders. We thank you for your continued support. Sincerely yours, Lilia C. Clemente Leopoldo M. Clemente, Jr. Chairman President
2 3 - - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (UNAUDITED) MARCH 31, 1995
- - ---------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - ---------------------------------------------------- NEW ZEALAND--2.3% Common Stock--2.3% 50,000 Fletcher Challenge Ltd. ADR................... $ 1,193,750 (Energy & forestry products) 12,500 Fletcher Challenge Forests ADR........... 170,313 (Forest products & paper) Total Common Stock/Holdings-- ------------ New Zealand........... 1,364,063 ------------ TOTAL HOLDINGS-- NEW ZEALAND........... 1,364,063 ------------ FAR EAST--44.4% JAPAN--28.1% Common Stock--28.1% 13,000 Aiphone SP Co. ......... 235,790 (Telecommunications equipment) 39,000 Ariake Japan Co., Ltd. ................. 1,486,830 (Processed & frozen food maker) 54,000 Daiki Co., Ltd. ........ 1,010,628 (Home centers) 62,000 Fukuda Denshi Co. ...... 1,432,532 (Medical electronics equipment maker) 62,000 Hitachi Metals, Ltd. ... 773,567 (High quality specialty steel producer) 26,250 Keiyu Co. .............. 879,448 (Used car dealer) 80,000 Kunimine Industries Co. .................. 1,201,479 (Building materials) 10,000 Maruko Co., Ltd. ....... 692,006 (Textiles--lingerie) 61,000 Nichiha Corp. .......... 1,099,353 (Housing materials & supplies)
- - ---------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - ---------------------------------------------------- FAR EAST (CONTINUED) JAPAN (CONTINUED) Common Stock (continued) 14,400 Nippon Kanzai Co. ...... $ 534,011 (Commercial services-- building maintenance) 26,000 Rohm Co., Ltd. ......... 1,159,427 (Custom linear microprocessor maker) 68,000 Takara Printing Co., Ltd. ................. 1,256,932 (Compiling & printing of corporate disclosures) 103,000 Takuma Co. ............. 1,618,299 (Boiler maker) 24,000 TDK Corp. .............. 1,122,921 (Magnetic tape maker) 36,000 Tokyo Electron, Ltd. ... 1,097,967 (Specialized electronics trading company) 56,000 Yorozu Corp. ........... 1,048,059 (Automobile parts) Total Common Stock/Holdings-- ------------ Japan................. 16,649,249 ------------ KOREA--4.8% Common Stock--4.8% 36,236 L.G. Electronics, Co. .................. 1,492,429 (Consumer electronics & electric appliance maker) 42,000 *Korea Zinc Co. ........ 1,104,261 (Zinc ingots, electrolytic zinc & electrolytic gold producer) 18,819 *Kumho Construction & Engineering Co., Ltd. ................. 242,275 (Transportation, construction) Total Common Stock/Holdings-- ------------ Korea................. 2,838,965 ------------
3 4 - - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1995
- - ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - ----------------------------------------------------- FAR EAST (CONTINUED) PHILIPPINES--8.9% Common Stock--8.9% 2,035,000 *Bankard, Inc. ......... $ 385,000 (Financial services) 1,704,500 *+Grand Plaza Hotel Corp.(a) ............. 822,635 (Property developer) 78,000 Manila Electric Co., Cl B............. 798,070 (Utilities--electric) 71,281 Metropolitan Bank & Trust Co. ............ 1,321,042 (Financial services-- commercial bank) 49,066 *Philex Mining Corp., CI B..................... 5,210 (Explores, mines, and develops ore deposits) 24,000,000 *Southeast Asia Cement Holdings Co. ......... 1,945,946 (Construction) Total Common Stock/Holdings-- ----------- Philippines........... 5,277,903 ----------- SINGAPORE--2.6% Common Stock--2.6% 390,000 *Osprey Maritime, Ltd.(a)............... 780,000 (Transportation--marine) 430,000 United Overseas Land, Ltd. ................. 761,601 (Conglomerate--real estate) Total Common Stock/Holdings-- ----------- Singapore............. 1,541,601 ----------- TOTAL HOLDINGS-- FAR EAST.............. 26,307,718 -----------
- - --------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - --------------------------------------------------- AFRICA--4.5% SOUTH AFRICA--4.5% Common Stock--4.5% 41,500 Murray & Roberts Holdings, Ltd. ....... $ 1,193,326 (Industrial holding company) 52,921 South Africa Breweries, Ltd. ................. 1,473,835 (Beverage, retail, and hotel holding company) Total Common Stock/Holdings-- South ----------- Africa................ 2,667,161 ----------- TOTAL HOLDINGS-- SOUTH AFRICA.......... 2,667,161 ----------- EUROPE--25.4% AUSTRIA--1.3% Common Stock--1.3% 8,150 Austria Mikro Systeme International A.G. ... 760,387 (Electronics-- semiconductors) Total Common Stock/Holdings-- ----------- Austria............... 760,387 ----------- FINLAND--5.4% Common Stock--5.4% 50,400 *Aamulehti Yhtymae Oy--II ............... 804,907 (Publishing) 8,500 Kone Corp, Cl B......... 1,015,160 (Elevator manufacturer) 24,900 Metra Oy, Cl B.......... 899,063 (Engineering & construction)
4 5 - - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1995
- - ---------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - ---------------------------------------------------- EUROPE (CONTINUED) FINLAND (CONTINUED) Common Stock (continued) 226,000 *Tampella AB............ $ 486,471 (Forest products & paper) Total Common Stock/Holdings-- ------------ Finland............... 3,205,601 ------------ GERMANY--1.8% Common Stock--1.8% 1,500 Wella A.G. ............. 1,079,843 (Personal care products manufacturer & marketer) Total Common Stock/Holdings-- ------------ Germany............... 1,079,843 ------------ IRELAND--8.5% Common Stock--8.5% 1,128,691 Anglo Irish Bank Corp. plc .................. 897,338 (Commercial bank) 212,651 Bank of Ireland Group plc................... 1,083,381 (Commercial bank) 1,130,000 Fyffes plc.............. 1,870,094 (Fresh fruit and produce distributor) 297,498 Independent Newspapers plc................... 1,206,726 (Newspaper publishing, cable TV & advertising) Total Common Stock/Holdings-- ------------ Ireland............... 5,057,539 ------------
- - ---------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - ---------------------------------------------------- EUROPE (CONTINUED) NETHERLANDS--1.8% Common Stock--1.8% 10,000 Verenidge Nederlendse Uitgevsbedri Verigd Bezit ................ $ 1,076,533 (Publishing & printing) Total Common Stock/Holdings-- ------------ Netherlands........... 1,076,533 ------------ SWEDEN--3.6% Common Stock--3.6% 120,000 Munksjo A/B B Free...... 879,049 (Forest & paper products) 80,000 Sandvik A/B B Free...... 1,269,738 (Cemented carbide, stainless steel, saws & tools manufacturer) Total Common Stock/Holdings-- ------------ Sweden................ 2,148,787 ------------ UNITED KINGDOM--3.0% Common Stock--3.0% 705,737 FKI Babcock plc ........ 1,744,600 (Engineering, automotive & material handling) Total Common Stock/Holdings-- ------------ United Kingdom........ 1,744,600 ------------ TOTAL HOLDINGS-- EUROPE................ 15,073,290 ------------
5 6 - - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1995
- - --------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - --------------------------------------------------- LATIN AMERICA--10.2% BRAZIL--1.2% Common Stock--1.2% 58,000 *++Usiminas Sideburg Minas ADS ............ $ 731,960 (Steel producer) Total Common Stock/Holdings-- ----------- Brazil................ 731,960 ----------- CHILE--2.0% Common Stock--2.0% 250,000 Antofagasta Holdings plc .................. 1,215,750 (Copper & gold mining, railroad holding company) Total Common Stock/Holdings-- ----------- Chile................. 1,215,750 ----------- COLOMBIA--2.4% Common Stock--2.4% 92,175 ++Corporacion Financiera del Valle S.A. ADS ... 1,428,707 (Commercial banking) Total Common Stock/Holdings-- ----------- Colombia.............. 1,428,707 ----------- MEXICO--3.6% Common Stock--3.6% 700,000 Grupo Industrial Maseca, S.A. de C.V., Cl B.... 431,245 (Tortilla dough manufacturer)
- - --------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - --------------------------------------------------- LATIN AMERICA (CONTINUED) MEXICO (CONTINUED) Common Stock (continued) 64,000 Panamerican Beverages, Inc. ADR.............. $ 1,672,000 (Bottler of brand name soft drinks in Mexico, Brazil & Colombia) Total Common Stock/Holdings-- ----------- Mexico................ 2,103,245 ----------- PANAMA--1.0% Common Stock--1.0% 22,000 Banco Latinoamericano de Exportaciones Cl E, S.A. ADR.............. 561,000 (Multinational bank) Total Common Stock/Holdings-- ----------- Panama................ 561,000 ----------- TOTAL HOLDINGS-- LATIN AMERICA......... 6,040,662 ----------- NORTH AMERICA--22.0% CANADA--3.7% Common Stock--3.7% 27,800 *Newbridge Networks Corp. ................ 910,450 (Telecommunications equipment) 120,000 *++Royal Plastics Group, Ltd. ................. 1,254,199 (Building materials) Total Common Stock/Holdings-- ----------- Canada................ 2,164,649 -----------
6 7 - - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1995
- - ---------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - - ---------------------------------------------------- NORTH AMERICA (CONTINUED) UNITED STATES--18.3% Common Stock--8.7% 66,000 *Dialogic Corp. ........ $ 1,872,750 (Computer software & services) 60,000 Freeport-McMoran Copper & Gold, Inc. Cl A..... 1,312,500 (Gold & copper mining) 122,000 *Geotek Industries, Inc. ................. 1,006,500 (Supplier of specialized mobile radio services) 24,200 Sybase, Inc. ........... 968,000 (Computer software services) Total Common Stock-- ------------ United States......... 5,159,750 ------------ Short-Term Instruments--9.6% $5,713,000 Chevron Oil Finance Corp. Commercial Paper 6.00%, dated 3/31/95, due 4/03/95........... 5,713,000 Total Short-Term Instruments-- ------------ United States......... 5,713,000 ------------ Total Holdings-- ------------ United States......... 10,872,750 ------------ TOTAL HOLDINGS-- NORTH AMERICA......... 13,037,399 ------------
- - ---------------------------------------------------- VALUE - - ---------------------------------------------------- Total Investments (Cost $57,387,384)**....... 108.8% $ 64,490,293 Other Assets Less Liabilities................ (8.8%) (5,216,123) ------------ Total Net Assets............. 100.0% $ 59,274,170 ============ Net Asset Value Per Share............ $10.06 ======
(ADR) American Depositary Receipts (ADS) American Depositary Shares * Non-Income Producing Security + Common stock has warrant offering of 1 warrant for every 5 shares owned, expiring on 12/9/97. Warrants currently valued at zero ++ Security restricted as to resale to institutional investors (a) Fair value as determined by the Board of Directors.
**SUMMARY OF TOTAL INVESTMENTS: COST VALUE ------------ ------------ Common Stock............... $ 51,674,384 $ 58,777,293 Short-Term Instruments..... 5,713,000 5,713,000 ------------ ------------ Total Investments.......... $ 57,387,384 $ 64,490,293 ============ ============
7 8 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; regarding shareholder inquiries, please call 1-800-432-8224) INVESTMENT ADVISER-- Clemente Capital, Inc. ADMINISTRATOR-- Furman Selz Incorporated TRANSFER AGENT AND REGISTRAR-- The Bank of New York CUSTODIAN-- Brown Brothers Harriman & Co. LEGAL COUNSEL-- Fulbright & Jaworski L.L.P. 9 (This page has been left blank intentionally.) 10 - - ---------------------------------------------------- SUMMARY OF GENERAL INFORMATION - - ---------------------------------------------------- THE FUND Clemente Global Growth Fund 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 "ClmGlb". The Fund's New York Stock Exchange trading symbol is CLM. Net asset value (NAV) and market price information about Clemente Global Growth Fund shares are published each Monday in The Wall Street Journal and The New York Times and in other newspapers. DIVIDEND REINVESTMENT PLAN Through its voluntary Dividend Reinvestment Plan, shareholders of Clemente Global Growth Fund may elect to receive dividends and capital gains distributions in the form of additional shares of the Fund. Tel. #1-800-432-8224. - - ---------------------------------------------------- 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. - - ---------------------------------------------------- (LOGO) CLEMENTE GLOBAL GROWTH FUND, INC. QUARTERLY REPORT MARCH 31, 1995 -----END PRIVACY-ENHANCED MESSAGE-----