-----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, V/Z32FikPY8hIrj45VOvP5zH/IvrT6hSICKaIa2A3X2FvaZUXA2UQIWdagyahORA g2EXmTaJWPiwep9cM+JFfg== 0000900092-94-000473.txt : 19941007 0000900092-94-000473.hdr.sgml : 19941007 ACCESSION NUMBER: 0000900092-94-000473 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940831 FILED AS OF DATE: 19941006 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH GLOBAL UTILITY FUND INC CENTRAL INDEX KEY: 0000868452 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-06180 FILM NUMBER: 94551913 BUSINESS ADDRESS: STREET 1: P O BOX 9011 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 BUSINESS PHONE: 6092823319 MAIL ADDRESS: STREET 1: P O BOX 9011 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 N-30B-2 1 QUARTERLY REPORT MERRILL LYNCH GLOBAL UTILITY FUND, INC. Quarterly Report August 31, 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 Global Utility Fund, Inc. Box 9011 Princeton, NJ 08543-9011 MERRILL LYNCH GLOBAL UTILITY FUND, INC. Officers and Directors Arthur Zeikel, President and Director Ronald W. Forbes, Director Cynthia A. Montgomery, Director Charles C. Reilly, Director Kevin A. Ryan, Director Richard R. West, Director Terry K. Glenn, Executive Vice President Norman R. Harvey, Senior Vice President Donald C. Burke, Vice President Walter D. Rogers, Vice President and Portfolio Manager Gerald M. Richard, Treasurer Patrick D. Sweeney, Secretary Custodian The Chase Manhattan Bank, N. A. 1 Chase Manhattan Plaza New York, New York 10005 Transfer Agent Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, Florida 32246-6484 (800) 637-3863 DEAR SHAREHOLDER Concerns of increasing inflationary pressures continued to prompt volatility in the US stock and bond markets during the June--August period. In addition, the weakness of the US dollar in foreign exchange markets prolonged stock and bond market declines during July. While the immediate concerns regarding the US dollar had diminished by late July, the possibility of continued tightening by the Federal Reserve Board resurfaced after Chairman Alan Greenspan gave his most recent Congressional testimony. However, a lower-than- expected rate of growth reported for the US economy during the second calendar quarter allayed inflationary concerns to some degree, despite the move in mid-August by the central bank to increase short-term interest rates for the fifth time this year. While the economic recovery is continuing, data suggest that it is losing some momentum. Consumer spending is increasing, but at a relatively slow pace, and existing home sales may have peaked. In the industrial sector, capital goods spending is still on the rise, but the gain for the second quarter was revised downward to 6.5%. On balance, growth in US industry is progressing at a steady, modest rate. Despite evidence of a moderating trend in the US economy, Chairman Greenspan indicated in his July Humphrey-Hawkins testimony that the central bank would prefer to err on the side of too much monetary tightening rather than too little. In the weeks ahead, investors will continue to assess economic data and inflationary trends in order to gauge whether further increases in short-term interest rates are imminent. Continued indications of moderate and sustainable levels of economic growth would be positive for the US capital markets. Portfolio Matters Utility stocks worldwide performed better in the quarter ended August 31, 1994 than in the previous quarter. Among the major utility sectors (gas, electric, water and telephones), the telephone sector was the best performing on a worldwide basis. Merrill Lynch Global Utility Fund, Inc. was exposed to this outperformance through its 36% weighting in global telephone stocks. As a result, during the August quarter, the total returns of the Fund's Class A Shares and Class B Shares were +3.07% and +2.79%, respectively, compared to an average +1.98% total return for Lipper Analytical Service's universe of 80 utility mutual funds. As we have indicated in previous shareholder reports, our intention is to increase the Fund's weighting in foreign utility stocks. During the August quarter, we increased the Fund's exposure to foreign utilities from 46.58% of net assets to 50.44%. We continue to believe that foreign utilities present better growth prospects supported by more benign regulatory environments than is to be found domestically. During the August quarter, we increased our weightings in Chile and the United Kingdom with the purchases of the stock of Chilgener S.A. and the bonds of Bell Cablemedia PLC, respectively. Chilgener is the second largest electric company in Chile as measured by operating revenue and generating capacity. The company accounted for approximately 15.8% of Chile's total generating capacity as of the end of March 1994. In addition to participating in the growth opportunities in the Chilean market, Chilgener is expanding geographically by purchasing participations in electricity generation companies in Argentina. Bell Cablemedia is somewhat of a unique public company in that it is a combination telephone/cable television company. The company, through its operating companies and its 30.8% equity interest in Videotron, holds exclusive cable television licenses and related non-exclusive telecommunications licenses covering over one million homes and approximately 77,000 businesses in greater metropolitan London and adjacent areas. Bell Cablemedia also holds cable television and telecommunications licenses covering franchise areas in other sections of the United Kingdom as well. In total, the operating companies of Bell Cablemedia and Videotron hold cable/telephone licenses covering approximately 19% of the homes in the United Kingdom for which such licenses have been awarded. We also shifted our domestic gas holdings by increasing our position in National Fuel Gas Co. and reducing our position in Enron Corp. We modestly reduced almost all of our positions in domestic stocks in order to lower the weighting in our domestic versus foreign holdings. In addition, we eliminated our stake in the domestic long distance telephone industry by selling our positions in both American Telegraph & Telephone Co. (AT&T) and MCI Communications Corp. We eliminated AT&T in response to the merger with McCaw Cellular. There will be an overhang of AT&T stock as British Telecom sells the shares of AT&T it gets from selling its stake in McCaw Cellular. In addition, we eliminated MCI because of the potential entry of regional Bell operating companies into long distance, as proposed in legislation which was actively being considered by Congress. On the foreign equity side of the portfolio, we reduced our holdings in China Light & Power Co., Ltd. given its above-average weighting in the portfolio and some concerns about the near-term fundamental outlook for the company. Investment Outlook The outlook for domestic electric utility stocks remains event- driven. The stocks are being negatively impacted by announcements concerning dividend payments and the resultant uncertainty, regula- tory or staff surprise decisions that may have long-term impli- cations (opening up markets to competition, for example) and the direction of interest rates. For example, with respect to the first point, New York State Electric & Gas Corp., a small holding of the Fund, announced in mid-August that it may not be able to maintain its current dividend level given the more competitive environment, its already fairly high payout ratio and a sluggish economy. This followed a statement made by the company in mid- May that it felt its dividend was secure. The news of a potential dividend cut sent the stock down by 20% before it opened for trading. While there have been only a few dividend reduction announcements so far this year, we believe that it is inevitable that there are many more to come given that the industry is in transition from being a regulated monopoly to a competitive one. As a result, the Fund's exposure to domestic electrics has declined from 25% of net assets at the end of May to a current level of just over 22%. The domestic stocks, however, are an important source of income for the Fund and benefit materially the overall yield generated by the Fund. In addition, domestic utilities generally yield more than foreign utilities. Thus the move toward foreign utilities may therefore reduce the Fund's yield somewhat. The rest of the utility industry, including electrics outside of the United States, continues to have a brighter outlook. Privatizations of telephone and electric utility companies continue around the world and are underpinned by better demographic-based growth rates and secular economic trends. In addition, the outlook for many already existing publicly traded companies continues to improve. Thus, there continues to be ample opportunity for investments in the global utility arena. In Conclusion We thank you for your investment in Merrill Lynch Global Utility Fund, Inc., and we look forward to discussing our investment strategy and outlook with you in future shareholder reports. Sincerely, (Arthur Zeikel) Arthur Zeikel President (Walter D. Rogers) Walter D. Rogers Vice President and Portfolio Manager September 20, 1994 PERFORMANCE DATA None of the past results shown should 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. Performance Summary-- Class A Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* % Change** 12/28/90--12/31/90 $10.00 $10.01 -- -- + 0.10% 1991 10.01 10.93 -- $0.508 +14.74 1992 10.93 11.40 $0.012 0.469 + 8.97 1993 11.40 13.67 0.027 0.424 +24.13 1/1/94--8/31/94 13.67 12.92 -- 0.228 - 3.73 ------ ------ Total $0.039 Total $1.629 Cumulative total return as of 8/31/94: +49.57%** *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** 12/28/90--12/31/90 $10.00 $10.01 -- -- + 0.10% 1991 10.01 10.92 -- $0.435 +13.84 1992 10.92 11.38 $0.012 0.391 + 8.12 1993 11.38 13.63 0.027 0.337 +23.17 1/1/94--8/31/94 13.63 12.87 -- 0.177 - 4.21 ------ ------ Total $0.039 Total $1.340 Cumulative total return as of 8/31/94: +45.36%** *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 reflect deduction of any sales charge; results would be lower if sales charge was deducted.
Recent Performance Results
12 Month 3 Month 8/31/94 5/31/94 8/31/93 % Change % Change Class A Shares* $12.92 $12.66 $13.57 -4.60%(1) +2.05% Class B Shares* 12.87 12.62 13.52 -4.61(1) +1.98 Class A Shares--Total Return* -1.31(2) +3.07(3) Class B Shares--Total Return* -2.05(4) +2.79(5) *Investment results shown do not reflect any sales charges; results would be lower if a sales charge was included. (1)Percent change includes reinvestment of $0.027 per share capital gains distributions. (2)Percent change includes reinvestment of $0.436 per share ordinary income dividends and $0.027 per share capital gains distributions. (3)Percent change includes reinvestment of $0.121 per share ordinary income dividends. (4)Percent change includes reinvestment of $0.341 per share ordinary income dividends and $0.027 per share capital gains distributions. (5)Percent change includes reinvestment of $0.096 per share ordinary income dividends.
Average Annual Total Return % Return Without % Return With Sales Charge Sales Charge** Class A Shares* Year Ended 6/30/94 - 0.97% -7.41% Inception (12/28/90) through 6/30/94 +10.19 +8.10 [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 -1.67% -5.49% Inception (12/28/90) through 6/30/94 +9.35 +9.12 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. SCHEDULE OF INVESTMENTS (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets Argentina Telecommunications 138,479 Telecom Argentina Stet S.A. (ADR)++ $ 5,075,039 $ 9,935,868 1.6% 128,513 Telefonica de Argentina S.A. (ADR)++ 4,824,906 9,365,385 1.5 ------------ ------------ ------ 9,899,945 19,301,253 3.1 Utilities--Electric 6,600 Central Costanera S.A. (ADR)++ 158,400 247,500 0.0 Total Common Stocks in Argentina 10,058,345 19,548,753 3.1 Australia Utilities--Gas 2,479,584 Australian Gas & Light Co., Ltd. 6,364,362 8,527,607 1.4 Total Common Stocks in Australia 6,364,362 8,527,607 1.4 Austria Utilities--Gas 34,850 Energie Versorgung Niederoes- terreich AG (EVN) 3,050,015 4,688,510 0.8 Total Common Stocks in Austria 3,050,015 4,688,510 0.8 Canada Telecommunications 321,700 BC Telecom, Inc. 6,009,937 6,129,239 1.0 Utilities--Electric 458,600 Nova Scotia Power Co. 4,322,473 3,846,193 0.6 Utilities--Gas 573,700 Transcanada Pipeline Co. Ltd. (ADR)++ 8,602,384 7,744,950 1.3 400,000 Westcoast Energy Inc. 6,901,727 6,750,000 1.1 ------------ ------------ ------ 15,504,111 14,494,950 2.4 Total Common Stocks in Canada 25,836,521 24,470,382 4.0 Chile Telecommunications 84,300 Compania de Telefonos de Chile S.A. (ADR)++ 5,871,894 7,692,375 1.3 Utilities--Electric 65,000 Chilgener S.A. (ADR)++ 1,495,000 1,690,000 0.3 186,000 Distribuidora Chilectra Metropol- itana S.A. (ADR)++ 5,031,451 8,370,000 1.4 28,000 Enersis S.A. (ADR)++ 544,224 682,500 0.1 ------------ ------------ ------ 7,070,675 10,742,500 1.8 Total Common Stocks in Chile 12,942,569 18,434,875 3.1 Denmark Telecommunications 331,000 Tele Danmark A/S (ADR)++ 7,787,106 8,978,375 1.5 Total Common Stocks in Denmark 7,787,106 8,978,375 1.5 France Utilities--Water 107,688 Compagnie Generale des Eaux 11,509,640 11,160,411 1.8 40,000 Lyonnaise des Eaux-Dumez 3,989,365 4,086,240 0.7 Total Common Stocks in France 15,499,005 15,246,651 2.5 Germany Utilities--Gas 20,000 VEBA AG 6,526,985 7,056,888 1.2 Total Common Stocks in Germany 6,526,985 7,056,888 1.2 Hong Kong Telecommunications 7,644,000 Hong Kong Telecommunications, Ltd. PLC 12,600,067 16,816,958 2.8 Utilities--Electric 3,005,200 China Light & Power Co., Ltd. 18,535,987 15,517,585 2.6 1,552,000 Hong Kong Electric Holdings, Ltd. 3,897,526 5,493,219 0.9 ------------ ------------ ------ 22,433,513 21,010,804 3.5 Utilities--Gas 2,626,800 The Hong Kong & China Gas Co., Ltd. 4,674,416 4,980,151 0.8 218,900 The Hong Kong & China Gas Co., Ltd. (Warrants)(a) 0 100,283 0.0 ------------ ------------ ------ 4,674,416 5,080,434 0.8 Total Common Stocks & Warrants in Hong Kong 39,707,996 42,908,196 7.1 India Utilities--Electric 49,500 CESC Ltd. (Units) 2,640,330 2,747,250 0.5 Total Common Stocks in India 2,640,330 2,747,250 0.5 Italy Telecommunications 3,091,700 Societa Finanziaria Telefonica S.p.A. (STET) 5,780,442 8,119,063 1.3 5,505,250 Societa Italiana Esercizio Telecom S.p.A. (SIP) 7,916,167 16,094,574 2.7 ------------ ------------ ------ 13,696,609 24,213,637 4.0 Utilities--Gas 1,786,300 Italgas Torino 5,169,953 6,036,096 1.0 Total Common Stocks in Italy 18,866,562 30,249,733 5.0 Malaysia Telecommunications 1,385,000 Telekom Malaysia BHD 9,502,659 11,584,522 1.9 Total Common Stocks in Malaysia 9,502,659 11,584,522 1.9 Mexico Telecommunications 140,000 Telefonos de Mexico, S.A. de C.V. (ADR)++ 7,377,170 8,785,000 1.4 Total Common Stocks in Mexico 7,377,170 8,785,000 1.4 New Zealand Telecommunications 216,500 Telecom Corporation of New Zealand Ltd. (ADR)++ 7,525,095 10,852,063 1.8 Total Common Stocks in New Zealand 7,525,095 10,852,063 1.8 Philippines Telecommunications 134,100 Philippine Long Distance Telephone Co. (ADR)++ 5,583,592 8,850,600 1.5 Total Common Stocks in the Philip- pines 5,583,592 8,850,600 1.5 Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 7,449,958 1.2 Utilities--Electric 154,800 Empresa Nacional de Electricidad S.A. (ADR)++ 5,123,952 6,946,650 1.1 92,000 Hidrocantabrico S.A. 3,107,921 2,783,193 0.5 808,500 Iberdrola I S.A. 4,998,321 5,435,294 0.9 13,230,194 15,165,137 2.5 Total Common Stocks in Spain 19,394,258 22,615,095 3.7 Thailand Telecommunications 44,200 Jasmine International Public Co., Ltd. 611,419 858,218 0.1 15,000 TelecomAsia Corporation Public Co., Ltd. PLC (ADR)++ 328,050 547,500 0.1 Total Common Stocks in Thailand 939,469 1,405,718 0.2
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets United Telecommunications 845,000 British Telecommunications PLC Kingdom (Ord.) $ 5,900,759 $ 5,068,048 0.8% 1,426,860 British Telecommunications PLC (Part Pay) 6,877,400 5,917,089 1.0 180,000 Vodafone Group PLC (ADR)++ 5,355,931 5,760,000 0.9 ------------ ------------ ------ 18,134,090 16,745,137 2.7 Utilities--Electric 445,000 Powergen PLC (Ord.) 3,253,482 4,080,349 0.7 Total Common Stocks in the United Kingdom 21,387,572 20,825,486 3.4 United Telecommunications 160,100 Airtouch Communications, Inc. 3,031,722 4,522,825 0.7 States 201,800 Ameritech Corp. 7,640,760 8,349,475 1.4 138,700 Bell Atlantic Corp. 7,358,558 7,593,825 1.3 149,400 BellSouth Corp. 8,454,788 8,870,625 1.5 235,700 GTE Corp. 8,322,438 7,483,475 1.2 187,700 NYNEX Corp. 7,679,103 7,249,913 1.2 160,100 Pacific Telesis Group 4,187,524 5,283,300 0.9 197,900 Southwestern Bell Corp. 6,889,718 8,188,112 1.3 292,900 US West Inc. 13,532,943 11,825,837 1.9 ------------ ------------ ------ 67,097,554 69,367,387 11.4 Utilities--Electric 117,000 AES China Generating Co., Ltd. 1,872,000 1,389,375 0.2 289,500 Allegheny Power System, Inc. 7,707,195 6,513,750 1.1 207,200 Boston Edison Co. 5,530,724 5,542,600 0.9 184,000 Central & SouthWest Corp. 5,218,349 4,140,000 0.7 218,200 Consolidated Edison Co. of New York 6,893,524 5,973,225 1.0 138,900 Detroit Edison Co. 4,670,083 3,785,025 0.6 110,250 Dominion Resources, Inc. 4,427,302 4,148,156 0.7 265,000 Duke Power Co. 10,851,663 10,268,750 1.7 237,400 Entergy Corp. 7,851,217 5,905,325 1.0 374,300 General Public Utilities Corp. 10,778,635 9,778,587 1.6 319,100 Houston Industries, Inc. 14,912,943 11,088,725 1.8 244,800 NIPSCO Industries, Inc. 6,616,371 7,068,600 1.2 221,000 New York State Electric & Gas Corp. 7,952,312 4,585,750 0.8 185,700 Northeast Utilities Co. 4,974,996 4,317,525 0.7 415,000 PECO Energy Co. 11,616,485 11,308,750 1.9 363,600 PSI Resources, Inc. 8,749,712 8,135,550 1.3 323,000 PacifiCorp 6,465,176 5,531,375 0.9 192,000 Public Service Co. of Colorado 5,832,890 5,208,000 0.9 283,000 SCEcorp 6,379,546 3,855,875 0.6 381,200 Southern Co. 6,665,086 7,195,150 1.2 178,300 Texas Utilities Co. 7,234,091 5,973,050 1.0 177,300 Western Resources Co. 5,664,717 5,097,375 0.8 ------------ ------------ ------ 158,865,017 136,810,518 22.6 Utilities--Gas 130,000 Brooklyn Union Gas Co. 3,371,550 3,233,750 0.5 226,000 The Coastal Corp. 6,038,593 6,921,250 1.1 108,300 El Paso Natural Gas Co. 4,196,831 3,560,362 0.6 284,000 Enron Corp. 6,456,111 8,662,000 1.4 244,300 NICOR Inc. 5,363,453 5,954,812 1.0 111,000 National Fuel Gas Company 3,350,300 3,454,875 0.6 108,000 New Jersey Resources Corp. 3,063,867 2,416,500 0.4 236,000 Questar Corp. 6,554,436 7,286,500 1.2 319,300 Sonat, Inc. 6,825,990 9,738,650 1.6 109,300 Washington Gas Light Co. 3,811,081 4,153,400 0.7 344,000 Williams Co., Inc. 6,580,099 10,707,000 1.8 ------------ ------------ ------ 55,612,311 66,089,099 10.9 Total Common Stocks in the United States 281,574,882 272,267,004 44.9 Total Investments in Common Stocks & Warrants 502,564,493 540,042,708 89.0 Face Amount Fixed-Income Securities Australia Telecommunications US$ 7,960,000 Telstra Corp., Ltd., 6.50% due 7/31/2003 8,115,578 7,284,992 1.2 Total Fixed-Income Securities in Australia 8,115,578 7,284,992 1.2 Canada Utilities-- 2,000,000 Hydro-Quebec, 9.23% due 12/04/2000 2,038,540 2,167,900 0.4 Electric Total Fixed-Income Securities in Canada 2,038,540 2,167,900 0.4 Japan Telecommunications 4,000,000 Nippon Telegraph & Telephone Corp., 9.50% due 7/27/1998 4,244,380 4,334,680 0.7 Total Fixed-Income Securities in Japan 4,244,380 4,334,680 0.7 Korea Telecommunications 2,500,000 Korea Telecom, 7.40% due 12/01/1999 2,499,500 2,460,500 0.4 Utilities-- 6,000,000 Korea Electric Power Corp., Electric 6.375% due 12/01/2003 5,913,060 5,229,000 0.9 Total Fixed-Income Securities in Korea 8,412,560 7,689,500 1.3 United Telecommunications 3,500,000 Bell Cablemedia PLC, 11.95%* due Kingdom 7/15/2004 1,975,829 1,990,625 0.3 Total Fixed-Income Securities in the United Kingdom 1,975,829 1,990,625 0.3 United Telecommunications 4,000,000 Rochester Telephone Corp., 9.25% States due 6/01/2000 4,111,200 4,343,840 0.7 Utilities-- 4,000,000 Consumer Power Co., 8.875% due Electric 11/15/1999 4,190,000 4,145,440 0.7 4,000,000 Niagara Mohawk Power Corp., 9.50% due 6/01/2000 4,197,640 4,270,640 0.7 ------------ ------------ ------ 8,387,640 8,416,080 1.4 Total Fixed-Income Securities in the United States 12,498,840 12,759,920 2.1 Total Investments in Fixed-Income Securities 37,285,727 36,227,617 6.0
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
Face Percent of COUNTRY Amount Short-Term Securities Cost Value Net Assets United Repurchase $15,190,000 HSBC Holdings PLC, purchased on States Agreement** 8/31/1994 to yield 4.75% to 9/01/1994 $ 15,190,000 $ 15,190,000 2.5% Total Investments in Short-Term Securities 15,190,000 15,190,000 2.5 Total Investments $555,040,220 591,460,325 97.5 ============ Other Assets Less Liabilities 15,325,006 2.5 ------------ ------ Net Assets $606,785,331 100.0% ============ ====== Net Asset Value: Class A--Based on net assets of $67,841,200 and 5,251,705 shares outstanding $ 12.92 ============ Class B--Based on net assets of $538,944,131 and 41,873,936 shares outstanding $ 12.87 ============ *Represents the yield to maturity. **Repurchase Agreements are fully collateralized by US Government or Agency Obligations. ++American Depositary Receipts (ADR). (a)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.
PORTFOLIO INFORMATION Worldwide Investments as of August 31, 1994 Ten Largest Holdings Percent of (Equity Investments) Net Assets Hong Kong Telecommunications, Ltd. PLC 2.8% Societa Italiana Esercizio Telecom S.p.A. (SIP) 2.7 China Light & Power Co., Ltd. 2.6 US West Inc. 1.9 Telekom Malaysia BHD 1.9 PECO Energy Co. 1.9 Compagnie Generale des Eaux 1.8 Houston Industries, Inc. 1.8 Telecom Corporation of New Zealand Ltd. (ADR) 1.8 Williams Co., Inc. 1.8 Additions Bell Cablemedia PLC, 11.95% due 7/15/2004 Chilgener S.A. (ADR) Deletions American Telephone & Telegraph Co. Long Island Lighting Co. MCI Communications Corp. Pennsylvania Power & Light Co. Rochester Gas & Electric Corp. -----END PRIVACY-ENHANCED MESSAGE-----