-----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, A69z/Qa0YZUB5ah799eMyq8xGCXDIXlg/18jkHl3oiKMEW3lzaLvheMFacUBhSTG UDzFhnBUZX2Bgn5lm1s8LQ== 0000950123-96-002504.txt : 19960518 0000950123-96-002504.hdr.sgml : 19960518 ACCESSION NUMBER: 0000950123-96-002504 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960516 SROS: NONE 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: 96568456 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 FIRST QUARTER REPORT / CLEMENTE GLOBAL GROWTH FUND 1 - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS - -------------------------------------------------------------------------------- May 6, 1996 Dear Fellow Shareholder: The first quarter of 1996 was one of those rare periods when the US stock and bond markets acted in opposite directions. The bond market experienced one of its worst three month periods while stocks continued on a roll, registering a gain of 9.19% in the DJIA and 4.80% in the S&P 500. Stock price gains were achieved despite higher bond yields, Republican disarray, the budget impasse and turbulence in several of the world's hot spots. As predictable as muddled and contradictory economic statistics might have been, they have still been met with outsized market reactions and a record breaking $75 billion has been flowing into equity mutual funds. LOOKING BACK--FIRST QUARTER 1996 Despite the recovery of equities in emerging markets (up 4.3%) and the continued fine overall performance of European equities, the US easily out-stepped the average performance turned in by most of the major regions in the world. The rallies in Latin American and Pacific Rim emerging equity markets which began in November 1995 were derailed early in February. These gyrations were particularly damaging to Clemente Global Growth Fund's performance during the first quarter. The Fund's net asset value rose 0.85% to $10.74. The Fund's share price ended the quarter slightly down to $8.25, while the discount increased to 23.18%. THE PORTFOLIO The Fund believes that the emerging markets will be the place to be in the years to come, despite their recent difficulties. With valuations down from their historic highs investors are again examining the fundamentals of emerging markets. We know that good quality growth has been achieved during the past five years with the growth rate of emerging markets at 4.2% compared to 1.9% for the G-7 countries. Over the next five years, we expect real GDP growth of 5.7% in emerging markets and 2.2% in the G-7. At the top of the list in 1996 will be China, Thailand, Malaysia, Singapore, and South Korea. Longer term we can expect Asia to continue to lead the way. This is well reflected in the Fund's increase in exposure to emerging markets in the first quarter. Since the end of 1995, the Fund's weighting in emerging markets rose to 33.3% from 23.1% and we expect this trend to continue in the near-term. The developed market exposure was reduced from 77% to 60% with Japan accounting for 24.7% and the US for 12.9%. The Fund's themes reflect continuing interest in capital goods, selected technology, cyclical stocks, a play on renewed interest in real resources of gold mines and energy and a reduction in interest sensitive holdings in the banks. Our themes for 1996 are reflected in some of the new names in the Fund: YPF is the largest company in Argentina, accounting for 50% of the Argentine oil and gas market; and Companhia Vale do Rio Doce, located in Brazil, is one of the world's largest and most efficient natural resource companies. Telefonica del Peru and Telebras of Brazil represent our favorites in 1 2 telecommunications. We added Siam Cement of Thailand and Davao Union Cement of the Philippines, given the strong worldwide demand for cement. OUTLOOK Against a backdrop of expanding global demand and rising inflationary expectations, we believe that the policy of monetary easing in the industrial world appears to be shifting to a tightening stance. Thus a global bond sell-off may continue into the second quarter of 1996. But losses will be quite limited compared with the sharp bond price declines of the first half of 1994. A partial reversal of the uptick in yields is likely later in the year. Funds will flow out of the US market as investors explore better valuations and higher expected returns abroad. Emerging markets will continue to reclaim some of their lost luster, aided by good growth prospects, stable politics, and attractive valuations. The good investment prospects of foreign markets will once again attract global investors. The Fund is appropriately structured to meet the opportunities in international markets for attractive returns and controlled risks. Thank you for your continued support and confidence. Sincerely yours, /s/ LILIA C. CLEMENTE LEOPOLDO M. CLEMENTE, JR. - --------------------- ---------------------------- Lilia C. Clemente Leopoldo M. Clemente, Jr. Chairman President
2 3 - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (UNAUDITED) MARCH 31, 1996
- ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- AUSTRALIA--1.6% Common Stock--1.6% 155,000 WMC, Ltd. .............. $ 1,028,255 (Producer & processor of mineral and petroleum products) Total Common Stock/Holdings-- ------------- Australia............. 1,028,255 ------------- TOTAL HOLDINGS-- AUSTRALIA (cost $1,011,578)........... 1,028,255 ------------- FAR EAST--46.3% HONG KONG--3.5% Common Stock--1.7% 125,000 Swire Pacific, Ltd. A .................... 1,099,171 (Conglomerate-- aviation, property, marine services, & insurance) Total Common Stock-- ------------- Hong Kong............. 1,099,171 ------------- Warrants--1.8% 2,358,000 *HSBC Holding Call Warrant due 7/30/1997 (strike level 105HKD)......... 731,815 1,390,000 * Sung Hung Kai Call Warrant due 8/15/1996 (strike level 47HKD).......... 404,430 Total Warrants-- ------------- Hong Kong............. 1,136,245 ------------- Total Holdings-- Hong Kong............. 2,235,416 ------------- INDONESIA--3.4% Common Stock--3.4% 32,000 Persahaan Perseroan Indo Satellite Corp. ADR .................. 1,092,000 (Telecommunications) - ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- FAR EAST (CONTINUED) INDONESIA (CONTINUED) 85,000 PT Gudang Garam-- Foreign Registered.... $ 1,063,750 (Tobacco manufacturer) Total Common Stock/Holdings-- ------------- Indonesia............. 2,155,750 ------------- JAPAN--24.7% Common Stock--21.0% 134 DDI Corp.. ............. 1,017,990 (Telecommunications) 85,000 Hitachi Metals, Ltd. ... 966,629 (High quality specialty steel producer) 18,000 Ito-Yokado Co., Ltd. ... 1,065,436 (Retail--supermarkets) 60,000 Mori Seiki Co., Ltd. ... 1,263,982 (Hand & machine tool maker) 50,000 Omron Corp. ............ 1,095,265 (Electronics) 26,000 Rohm Co., Ltd. ......... 1,471,104 (Electronics-- semiconductors) 43,000 Sankyo Co., Ltd. ....... 982,010 (Pharmaceuticals) 49,000 Sanwa Bank, Ltd. ....... 982,010 (Financial services-- commercial banks) 52,500 Shin-Etsu Chemical Co........... 1,008,110 (Chemicals-- semiconductors & PVC) 87,000 Shiseido Co., Ltd. ..... 1,021,812 (Cosmetics--personal care) 24,000 TDK Corp. .............. 1,232,662 (Electronics)
3 4 - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1996
- ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- FAR EAST (CONTINUED) JAPAN (CONTINUED) Common Stock (continued) 36,000 Tokyo Electron, Ltd. ... $ 1,224,832 (Computers-- electronics trading company) Total Common Stock-- ------------- Japan................. 13,331,842 ------------- Warrants--3.7% 245,000 *Morgan Stanley Group Nikkei 225 Index Call Warrant due 8/15/1997 (strike level Y18,158.73) (b)................... 2,312,188 ------------- Total Warrants--Japan... 2,312,188 ------------- Total Holdings--Japan... 15,644,030 ------------- KOREA--3.6% Common Stock--3.6% 20,000 Dae Duck Industrial Co.................... 890,213 (Electrical equipment) 38,349 L.G. Electronics Co. ... 1,044,344 (Consumer electronics & electric appliance maker) 4,570 Pohang Iron & Steel Co., Ltd. ................. 330,706 (Iron & steel manufacturer) Total Common Stock/Holdings-- ------------- Korea................. 2,265,263 ------------- MALAYSIA--1.1% Common Stock--1.0% 400,000 +Renong Berhad.......... 650,381 (Conglomerate-- engineering, construction & financial services) Total Common Stock-- ------------- Malaysia.............. 650,381 ------------- - ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- FAR EAST (CONTINUED) MALAYSIA (CONTINUED) Rights--0.1% 400,000 Renong Berhad........... $ 31,572 (Conglomerate-- engineering, construction & financial services) Total Rights-- ------------- Malaysia.............. 31,572 ------------- Total Holdings-- Malaysia.............. 681,953 ------------- PHILIPPINES--5.6% Common Stock--5.6% 1,500,000 *C & P Homes Inc. ...... 1,130,725 (Homebuilders) 500,000 Davao Union Cement Corp., B.............. 120,229 (Building materials) 1,704,500 *++Grand Plaza Hotel Corp. (a)............. 975,859 (Property developer) 10,100,000 *Southeast Asia Cement Holdings Co. ......... 1,291,412 (Construction) Total Common Stock/Holdings-- ------------- Philippines........... 3,518,225 ------------- SINGAPORE--1.6% Common Stock--1.6% 109,000 Keppel Corp., Ltd. ..... 991,261 (Transportation-- marine) Total Common Stock/Holdings-- ------------- Singapore............. 991,261 ------------- THAILAND--2.8% Common Stock--2.8% 16,000 Siam Cement Co.-- Foreign Registered.... 824,187 (Building materials)
4 5 - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1996
- ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- FAR EAST (CONTINUED) THAILAND (CONTINUED) Common Stock (continued) 63,000 Siam Commercial Bank Public Co., Ltd.-- Foreign Registered ... $ 968,578 (Financial services-- commercial banking) Total Common Stock/Holdings-- ------------- Thailand.............. 1,792,765 ------------- TOTAL HOLDINGS-- FAR EAST (cost $26,756,577).......... 29,284,663 ------------- AFRICA--3.3% SOUTH AFRICA--3.3% Common Stock--3.3% 300,000 Gencor, Ltd. ........... 1,183,060 (Conglomerate--mining, commercial services) 28,949 South Africa Breweries, Ltd. ...... 916,200 (Beverage, retail, & hotel holding company) Total Common Stock/Holdings-- ------------- South Africa.......... 2,099,260 ------------- TOTAL HOLDINGS--AFRICA (cost $1,628,510)..... 2,099,260 ------------- EUROPE--17.4% FRANCE--1.5% Common Stock--1.5% 9,381 Compagnie Generale des Eaux.................. 959,545 (Utilities--water) Total Common Stock/Holdings-- ------------- France................ 959,545 ------------- - ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- EUROPE (CONTINUED) GERMANY--1.1% Common Stock--1.1% 1,500 Hoechst A.G. ........... $ 708,288 (Chemical manufacturer & marketer) Total Common Stock/Holdings-- ------------- Germany............... 708,288 ------------- IRELAND--4.1% Common Stock--4.1% 212,650 Bank of Ireland Group... 1,399,804 (Commercial bank) 152,498 Independent Newspapers plc................... 1,217,580 (Newspaper publishing, cable TV & advertising) Total Common Stock/Holdings-- ------------- Ireland............... 2,617,384 ------------- ITALY--1.8% Common Stock--1.8% 620,000 *Telecom Italia Mobile Sp. A................. 1,125,545 (Telecommunications) Total Common Stock/Holdings-- ------------- Italy................. 1,125,545 ------------- NETHERLANDS--3.0% Common Stock--3.0% 17,600 Polygram NV............. 1,064,409 (Entertainment-- recorded music) 50,000 VNU-Ver Ned Uitgev Ver Bezit................. 831,569 (Publishing & printing) Total Common Stock/Holdings-- ------------- Netherlands........... 1,895,978 -------------
5 6 - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1996
- ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- EUROPE (CONTINUED) SPAIN--1.7% Common Stock--1.7% 18,500 Empresa Nacional de Electridad S.A. ...... $ 1,059,826 (Utilities--electric) Total Common Stock/Holdings-- ------------- Spain................. 1,059,826 ------------- UNITED KINGDOM--4.2% Common Stock--4.2% 72,700 Reed International plc................... 1,230,587 (Publishing-printing) 131,000 Reuters Holdings plc.... 1,422,915 (Publishing--newspaper) Total Common Stock/Holdings-- ------------- United Kingdom........ 2,653,502 ------------- TOTAL HOLDINGS--EUROPE (cost $8,596,376)..... 11,020,068 ------------- LATIN AMERICA--11.3% ARGENTINA--2.0% Common Stock--2.0% 23,000 Buenos Aires Embotellado ADR................... 382,375 (Beverage bottler & marketer) 44,000 YPF Sociedad Anonima D ADR......... 885,500 (Oil/gas exploration & production) Total Common Stock/Holdings-- ------------- Argentina............. 1,267,875 ------------- BRAZIL--2.9% Common Stock--2.9% 24,000 Companhia Vale do Rio Doce ADR.............. 945,000 (Mining, rail transportation & mineral sales) - ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- LATIN AMERICA (CONTINUED) BRAZIL (CONTINUED) Common Stock (continued) 18,000 Telecomunicacoes Brasilerias S.A. ADR................... $ 895,500 (Telecommunications) Total Common Stock/Holdings-- ------------- Brazil................ 1,840,500 ------------- MEXICO--4.9% Common Stock--4.9% 262,000 Cementos de Mexico S.A. de C.V., B............ 1,006,219 (Building materials) 32,000 Panamerican Beverages, Inc. ADR... 1,292,000 (Bottler of brand name soft drinks in Mexico, Brazil & Colombia) 24,500 Telefonos de Mexico S.A. ADR................... 807,352 (Telecommunications) Total Common Stock/Holdings-- ------------- Mexico................ 3,105,571 ------------- PERU--1.5% Common Stock--1.5% 457,000 Telefonica del Peru S.A., B............... 946,715 (Telecommunications) Total Common Stock/Holdings-- ------------- Peru.................. 946,715 ------------- TOTAL HOLDINGS-- LATIN AMERICA (cost $7,018,637)..... 7,160,661 ------------- NORTH AMERICA--18.5% CANADA--5.6% Common Stock--5.6% 30,000 Alcan Aluminium, Ltd. ................. 971,088 (Metals--diversified)
6 7 - ---------------------------------------------------------- CLEMENTE GLOBAL GROWTH FUND, INC. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 1996
- ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- NORTH AMERICA (CONTINUED) CANADA (CONTINUED) Common Stock (continued) 32,000 Barrick Gold Corp. ..... $ 972,000 (Gold exploration & production) 27,800 *Newbridge Networks Corp. ................ 1,563,750 (Telecommunications equipment) Total Common Stock/Holdings-- ------------- Canada................ 3,506,838 ------------- UNITED STATES--12.9% Common Stock--12.5% 34,000 Enron Corp. ............ 1,253,750 (Oil/gas exploration & production) 28,000 *Foundation Health Corp. ................ 1,067,500 (Managed health care provider) 28,500 Home Depot, Inc. ....... 1,360,875 (Retail--special line) 23,000 Intel Corp. ............ 1,308,125 (Electronics-- semiconductors) 17,000 Suntrust Banks, Inc. ... 1,190,000 (Financial services-- commercial banks) 19,200 *Sybase, Inc. .......... 446,400 (Computer software services) 28,000 *Worldcom, Inc. ........ 1,288,000 (Utilities-- telecommunications) Total Common Stock-- ------------- United States......... 7,914,650 ------------- - ----------------------------------------------------- SHARES/PRINCIPAL AMOUNT DESCRIPTION VALUE - ----------------------------------------------------- NORTH AMERICA (CONTINUED) UNITED STATES (CONTINUED) Short-Term Instruments--0.4% $246,000 Brown Brothers Cayman Islands Time Deposit, 4.9375% dated 3/29/96, due 4/01/96........... $ 246,000 Total Short-Term Instruments-- ------------- United States......... 246,000 ------------- Total Holdings-- United States......... 8,160,650 ------------- TOTAL HOLDINGS-- NORTH AMERICA (cost $11,008,182).... 11,667,488 ------------- Total Investments (cost $56,019,860)**........ 98.4% $ 62,260,395 Other Assets Less Liabilities................. 1.6% 1,029,756 ------------ Total Net Assets.............. 100.0% $ 63,290,151 ========== Net Asset Value Per Share..... $10.74 ====== ADR American Depositary Receipts * Non-Income Producing Security. + Common stock has a warrant offering of 1 warrant for every 8 shares owned, expiring in 2001. The warrants are valued at zero. ++ Common stock has a warrant offering of 1 warrant for every 5 shares owned, expiring on 12/09/97. The warrants are valued at zero. (a) Fair value as determined by the Board of Directors. (b) These warrants enable a holder to realize a cash settlement value upon exercise of the warrants in U.S.$ equal to the greater value of (i) 0 or (ii) U.S. $1 x (spot Nikkei 225 Index - strike level) 4 x (Yen/U.S.$1.00)
**SUMMARY OF TOTAL INVESTMENT COST VALUE ------------ ------------ Common Stock............... $ 52,893,973 $ 58,534,390 Rights..................... 32,386 31,572 Warrants................... 2,847,501 3,448,433 Short-Term Instruments..... 246,000 246,000 ------------ ------------ Total Investments.......... $ 56,019,860 $ 62,260,395 ========== ==========
7 8 NOTICE OF NEW TRANSFER AGENT AND REGISTRAR The Fund is pleased to announce that American Stock Transfer & Trust Company has become the Fund's new transfer agent and registrar effective March 1, 1996. American Stock Transfer also provides various shareholder services and handles inquiries from shareholders through the Fund's toll-free number, 1-800-937-5449. 9 (This page has been left blank intentionally.) 10 (This page has been left blank intentionally.) 11 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 1-800-937-5449) INVESTMENT ADVISER-- Clemente Capital, Inc. ADMINISTRATOR-- Furman Selz LLC TRANSFER AGENT AND REGISTRAR-- American Stock Transfer & Trust Company CUSTODIAN-- Brown Brothers Harriman & Co. LEGAL COUNSEL-- Fulbright & Jaworski L.L.P. 12 - ------------------------------------------------- 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. For shareholder account inquiries call 1-800-937-5449. 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. 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. [CLEMENTE GLOBAL GROWTH FUND, INC. LOGO] CLEMENTE GLOBAL GROWTH FUND, INC. QUARTERLY REPORT MARCH 31, 1996 -----END PRIVACY-ENHANCED MESSAGE-----