-----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, AAIilb4q5FoMZSVYfpyrTyDqFYgwYshg8Nv1FK6TWjSSpJBkbuo0g4dxNc28qP/f ZiOVkBFK55cIHar4fXewvQ== 0000900092-96-000074.txt : 19960412 0000900092-96-000074.hdr.sgml : 19960412 ACCESSION NUMBER: 0000900092-96-000074 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960411 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH GLOBAL UTILITY FUND INC CENTRAL INDEX KEY: 0000868452 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [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: 96546084 BUSINESS ADDRESS: STREET 1: P O BOX 9066 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 BUSINESS PHONE: 6092823319 MAIL ADDRESS: STREET 1: P O BOX 9066 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 N-30B-2 1 QUARTERLY REPORT MERRILL LYNCH GLOBAL UTILITY FUND, INC. FUND LOGO Quarterly Report February 29, 1996 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. 4 MetroTech Center, 18th Floor Brooklyn, NY 11245 Transfer Agent Merrill Lynch Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, FL 32246-6484 (800) 637-3863 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. Statements and other information herein are as datedand are subject to change. Merrill Lynch Global Utility Fund, Inc. Box 9011 Princeton, NJ 08543-9011 MERRILL LYNCH GLOBAL UTILITY FUND, INC. Sector Diversification As a Percentage of Equities as of February 29, 1996 Pie graph depicting the following percentages: Utilities--Electric 44.5% Telecommunications 39.9% Utilities--Gas 12.5% Utilities--Water 3.1% Geographical Diversification As a Percentage of Equities as of February 29, 1996 Pie graph depicting the following percentages: United States 52.2% Europe 27.0% Americas (Ex-US) 10.8% Asia/Pacific 10.0% DEAR SHAREHOLDER Throughout most of the February quarter, it appeared that the US economy was losing momentum. Consumer spending was barely growing and the industrial sector was at a virtual standstill. With inflationary pressures subdued, the Federal Reserve Board responded to the slowing economy by continued modest monetary policy easing. However, late in the quarter a series of economic releases began to suggest that economic activity would not continue to be as sluggish as originally expected. A surge in auto sales and factory orders, rising consumer confidence and strong housing starts led some investors to believe that economic activity was again accelerating and further easing by the Federal Reserve Board was unlikely. These concerns were highlighted shortly after the February quarter's close with the report of a sharp increase in new jobs in February and a drop in unemployment. In the weeks ahead, it is likely that investors will continue to monitor economic data releases closely as they attempt to gauge the US economy's progress. The impasse between the Clinton Administration and Congress over the Federal budget continues. However, both sides have made concessions since the debate began. It appears that investors are currently focusing on the progress that has been made rather than on the differences that remain. Initially, President Clinton proposed deficits of about $190 billion annually through fiscal year 2002. He now proposes balanced budgets, as do the Republicans. Furthermore, even without policy changes, it appears that the US Federal budget deficit could remain stable at about 2% of gross domestic product for the rest of the decade. This is far better than is the case for most Group of Seven industrial nations, and a great improvement over the last 15 years. Nevertheless, current indications are that a piecemeal budget accord is the most likely outcome. Although this may fall short of investors' best expectations, it appears that the Federal budget debate over the past year has resulted in a trend toward a more conservative fiscal policy. Portfolio Matters For the quarter ended February 29, 1996, Merrill Lynch Global Utility Fund, Inc.'s Class A, Class B, Class C and Class D Shares had total returns of +6.09%, +5.91%, +5.91% and +5.87%, respectively. For the three-month period ended February 29, 1996, the total return for the Financial Times/Standard & Poor's-- Actuaries World Utility Index was +3.68%. (Fund results shown do not reflect sales charges and would be lower if sales charges were included. For complete performance information, see pages 4--6 of this report to shareholders.) Driving the Fund's performance for the February quarter was its geographical diversification and country selection. As of February 29, 1996, the Fund's holdings were in- vested in 23 countries, with 51% of net assets in US markets and 48% in foreign markets. Following strong performance in the month of December, domestic utilities began to show signs of weakness in January 1996, which was followed by a further decline in February. This decline in domestic utility stock prices was driven primarily by rising long-term interest rates. For the most part, the performance of non-US utility markets reflected a strong December, followed by a weaker January and an improved February. The major utility markets contributing to this trend were Japan, the United Kingdom and Spain. Combining the US and foreign utility markets, the monthly total returns were negative for February but were positive in both January and December. Most of the news impacting utility stocks during the February quarter took place in the United States rather than abroad. First, in the United States a new telecommunications law was signed that will eventually allow greater competition in both the local and long distance telephone markets. Second, in the US-based electric utility sector, cost-cutting and international acquisitions continued during the February quarter, and are expected to result in enhancement to both cash flow and earnings over time. Moreover, the pace of changing rate-of-return regulation appears to have slowed and to be more evolutionary than revolutionary. While the individual states have varied considerably in terms of their efforts to restructure the electric utility sector, so far only California, Michigan and New Hampshire have adopted restructuring plans. The issue of "stranded investment" (a plant used for the generation of electricity that is no longer competitive) was recently addressed in President Clinton's Report to Congress. The report indicates that under rate-of-return regulation, utilities have been limited on the upside in their rates/profits to no more than a fair return on investments. Therefore, they should be allowed to recover most stranded costs as long as the investments were authorized by regulators at the beginning of the project. The overseas telecommunications and electric markets continued to be dominated by the issues of open competition, regulatory changes and the flow of new issues that are expected to come to market in the current year. First, potential changes in leadership from upcoming elections appear to be a dominant issue impacting the utility group in Europe. However, with the regulatory climate being relatively stable and company cash flows continuing to grow and finance dividends and acquisitions, the sector remains selectively attractive. Second, the desire by many governments to control inflation remains a constraint on tariff increases for Latin America and some of the Pacific Rim-based utility companies. While this may currently impact the existing companies that for the most part were at one time fully government-owned, the need for additional sources of electric power and improved telecommunications (which are both capital-intensive) should yield somewhat favorable results for the two utility sectors. Third, the potential for a significant amount of capital to be raised in the equity markets in the next several months, particularly from the telecommunications sector in Europe, is very large. In the near term, this may create an overhang of supply of utility common stock, but it may also highlight the relative attractiveness of some of the existing publicly traded companies. These issues, coupled with valuation levels, resulted in only a few transactions in the Fund's portfolio during the quarter ended February 29, 1996. We initiated a position in the Brazilian telecommunications company, Telecomunicacoes Brasileiras S.A.-- Telebras based on improving fundamentals that resulted in positive earnings momentum. Telebras is the primary supplier of public telecommunications services in Brazil, through its 28 operating subsidiaries. The company is controlled by the Brazilian government, which by law is required to own more than 50% of the voting shares. The Telebras network consists of over 13.5 million installed access lines and over 12.6 million access lines in service. Brazil has approximately 9 access lines in service per 100 inhabitants, implying room for substantial growth. We completed the sale of the Fund's holdings in China Light & Power Co., Ltd. and The Hong Kong Electric Holdings, Ltd. This action, coupled with price changes, resulted in the Fund's position in the Hong Kong utility market declining to 0.45% of net assets compared to 2.58% as of November 30, 1995. The sales were driven by fundamental changes at both companies as well as concern over the political and economic climate. In the United States, we completed the sale of NICOR Inc. These were the only significant changes made to the Fund's portfolio composition during the February quarter. 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 March 26, 1996 PERFORMANCE DATA About Fund Performance Investors are able to purchase shares of the Fund through the Merrill Lynch Select Pricing SM System, which offers four pricing alternatives: * Class A Shares incur a maximum initial sales charge (front-end load) of 4% and bear no ongoing distribution or account maintenance fees. Class A Shares are available only to eligible investors. * Class B Shares are subject to a maximum contingent deferred sales charge of 4% if redeemed during the first year, decreasing 1% each year thereafter to 0% after the fourth year. In addition, Class B Shares are subject to a distribution fee of 0.50% and an account maintenance fee of 0.25%. These shares automatically convert to Class D Shares after approximately 10 years. * Class C Shares are subject to a distribution fee of 0.55% and an account maintenance fee of 0.25%. In addition, Class C Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. * Class D Shares incur a maximum initial sales charge of 4% and an account maintenance fee of 0.25% (but no distribution fee). 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. Dividends paid to each class of shares will vary because of the different levels of account maintenance, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. Recent Performance Results*
12 Month 3 Month 2/29/96 11/30/95 2/28/95 % Change % Change Class A Shares $13.97 $13.52 $12.09 +17.64%(1) +5.20%(1) Class B Shares 13.92 13.47 12.05 +17.61(1) +5.22(1) Class C Shares 13.91 13.46 12.05 +17.53(1) +5.22(1) Class D Shares 13.98 13.55 12.11 +17.53(1) +5.04(1) Class A Shares--Total Return +22.04(2) +6.09(3) Class B Shares--Total Return +21.07(4) +5.91(5) Class C Shares--Total Return +21.01(6) +5.91(7) Class D Shares--Total Return +21.56(8) +5.87(9) *Investment results shown do not reflect sales charges; results shown would be lower if a sales charge was included. (1)Percent change includes reinvestment of $0.245 per share capital gains distributions. (2)Percent change includes reinvestment of $0.483 per share ordinary income dividends and $0.245 per share capital gains distributions. (3)Percent change includes reinvestment of $0.117 per share ordinary income dividends and $0.245 per share capital gains distributions. (4)Percent change includes reinvestment of $0.380 per share ordinary income dividends and $0.245 per share capital gains distributions. (5)Percent change includes reinvestment of $0.090 per share ordinary income dividends and $0.245 per share capital gains distributions. (6)Percent change includes reinvestment of $0.383 per share ordinary income dividends and $0.245 per share capital gains distributions. (7)Percent change includes reinvestment of $0.091 per share ordinary income dividends and $0.245 per share capital gains distributions. (8)Percent change includes reinvestment of $0.445 per share ordinary income dividends and $0.245 per share capital gains distributions. (9)Percent change includes reinvestment of $0.109 per share ordinary income dividends and $0.245 per share capital gains distributions.
Average Annual Total Return % Return Without % Return With Sales Charge Sales Charge** Class A Shares* Year Ended 12/31/95 +23.74% +18.79% Inception (12/28/90) through 12/31/95 +11.59 +10.68 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Without CDSC With CDSC** Class B Shares* Year Ended 12/31/95 +22.73% +18.73% Inception (12/28/90) through 12/31/95 +10.73 +10.73 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. % Return % Return Without CDSC With CDSC** Class C Shares* Year Ended 12/31/95 +22.67% +21.67% Inception (10/21/94) through 12/31/95 +15.32 +15.32 [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 year. **Assuming payment of applicable contingent deferred sales charge. % Return Without % Return With Sales Charge Sales Charge** Class D Shares* Year Ended 12/31/95 +23.62% +18.67% Inception (10/21/94) through 12/31/95 +16.13 +12.22 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. 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 1994 13.67 11.83 -- 0.480 -10.00 1995 11.83 13.86 0.245 0.483 +23.74 1/1/96--2/29/96 13.86 13.97 -- -- + 0.79 ------ ------ Total $0.284 Total $2.364 Cumulative total return as of 2/29/96: +74.40%** *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 DATA (concluded) 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 1994 13.63 11.81 -- 0.379 -10.62 1995 11.81 13.83 0.245 0.380 +22.73 1/1/96--2/29/96 13.83 13.92 -- -- + 0.65 ------ ------ Total $0.284 Total $1.922 Cumulative total return as of 2/29/96: +67.55%** *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.
Performance Summary-- Class C Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* % Change** 10/21/94--12/31/94 $12.34 $11.81 -- $0.117 - 3.35% 1995 11.81 13.82 $0.245 0.383 +22.67 1/1/96--2/29/96 13.82 13.91 -- -- + 0.65 ------ ------ Total $0.245 Total $0.500 Cumulative total return as of 2/29/96: +19.33%** *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.
Performance Summary-- Class D Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* % Change** 10/21/94--12/31/94 $12.37 $11.84 -- $0.124 - 3.29% 1995 11.84 13.90 $0.245 0.445 +23.62 1/1/96--2/29/96 13.90 13.98 -- -- + 0.58 ------ ------ Total $0.245 Total $0.569 Cumulative total return as of 2/29/96: +20.24%** *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.
SCHEDULE OF INVESTMENTS (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks Cost Value Net Assets Argentina Telecommunications 100,000 Telecom Argentina STET S.A. (ADR)(a) $ 3,770,294 $ 4,325,000 1.0% 200,000 Telefonica de Argentina S.A. (ADR)(a) 4,140,594 5,225,000 1.2 ------------ ------------ ------ 7,910,888 9,550,000 2.2 Utilities--Electric 6,600 Central Costanera S.A. (ADR)(a) 158,400 204,600 0.0 Total Common Stocks in Argentina 8,069,288 9,754,600 2.2 Australia Utilities--Gas 2,000,000 The Australian Gas & Light Co., Ltd. 5,280,752 8,100,520 1.8 Total Common Stocks in Australia 5,280,752 8,100,520 1.8 Austria Utilities--Gas 41,820 Energie--Versorgung Niederoesterreich AG (EVN) 3,050,015 5,544,724 1.3 Total Common Stocks in Austria 3,050,015 5,544,724 1.3 Brazil Telecommunications 45,000 Telecomunicacoes Brasileiras S.A.--Telebras (ADR)(a) 2,176,898 2,362,500 0.5 Total Common Stocks in Brazil 2,176,898 2,362,500 0.5 Canada Telecommunications 140,000 BC Telecom, Inc. 2,593,297 2,575,029 0.6 Utilities--Electric 458,600 Nova Scotia Power Co. 4,322,473 4,050,499 0.9 Utilities--Gas 254,400 Transcanada Pipeline Co. Ltd. (ADR)(a) 3,941,562 3,593,400 0.8 200,000 Westcoast Energy Inc. 3,470,767 3,175,000 0.7 ------------ ------------ ------ 7,412,329 6,768,400 1.5 Total Common Stocks in Canada 14,328,099 13,393,928 3.0 Chile Telecommunications 63,000 Compania de Telecommunicaciones de Chile S.A. (Sponsored) (ADR)(a) 4,489,995 5,213,250 1.2 Utilities--Electric 65,000 Chilgener S.A. (ADR)(a) 1,495,000 1,568,125 0.4 156,000 Distribuidora Chilectra Metropolitana S.A. (ADR)(a) 4,249,463 8,112,000 1.9 28,000 Enersis S.A. (ADR)(a) 544,224 794,500 0.2 ------------ ------------ ------ 6,288,687 10,474,625 2.5 Total Common Stocks in Chile 10,778,682 15,687,875 3.7 Denmark Telecommunications 281,000 Tele Danmark A/S (ADR)(a) 6,610,806 8,289,500 1.9 Total Common Stocks in Denmark 6,610,806 8,289,500 1.9 France Utilities--Water 87,988 Compagnie Generale des Eaux 9,481,908 8,816,258 2.0 40,000 Lyonnaise des Eaux Dumez 3,989,365 3,705,556 0.8 Total Common Stocks in France 13,471,273 12,521,814 2.8 Germany Utilities--Electric 200,000 Veba AG 6,526,985 9,411,765 2.1 Total Common Stocks in Germany 6,526,985 9,411,765 2.1
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks Cost Value Net Assets Hong Kong Utilities--Gas 1,000,000 The Hong Kong & China Gas Co., Ltd. $ 1,627,410 $ 1,959,795 0.4% Total Common Stocks in Hong Kong 1,627,410 1,959,795 0.4 India Utilities--Electric 49,500 CESC Ltd. (Units) (b) 2,640,330 915,750 0.2 Total Common Stocks in India 2,640,330 915,750 0.2 Indonesia Telecommunications 5,500 PT Indonesian Satellite Corp. (Indosat) (ADR)(a) 176,275 205,563 0.0 29,600 PT Telekomunikasi Indonesia (Persero) (ADR)(a) 532,800 928,700 0.2 Total Common Stocks in Indonesia 709,075 1,134,263 0.2 Italy Telecommunications 3,091,700 Societa Finanziara Telefonica S.p.A. (STET) 5,780,442 7,037,208 1.6 5,000,000 Telecom Italia Mobile S.p.A. 3,090,118 9,178,589 2.1 3,900,000 Telecom Italia S.p.A. 3,619,691 6,532,390 1.5 ------------ ------------ ------ 12,490,251 22,748,187 5.2 Utilities--Gas 1,786,300 Societa Italiana il Gas (Italgas) S.p.A. 5,169,953 5,547,551 1.3 Total Common Stocks in Italy 17,660,204 28,295,738 6.5 Korea Utilities--Electric 199,200 Korea Electric Power Corp. (KEPCO) (ADR)(a) 4,008,900 4,830,600 1.1 Total Common Stocks in Korea 4,008,900 4,830,600 1.1 Malaysia Telecommunications 1,035,000 Telekom Malaysia BHD 7,499,205 8,895,801 2.0 Total Common Stocks in Malaysia 7,499,205 8,895,801 2.0 Mexico Telecommunications 105,000 Telefonos de Mexico, S.A. de C.V. (ADR)(a) 5,594,445 3,202,500 0.7 Total Common Stocks in Mexico 5,594,445 3,202,500 0.7 New Zealand Telecommunications 100,000 Telecom Corporation of New Zealand Ltd. (ADR)(a) 3,935,303 7,112,500 1.6 Total Common Stocks in New Zealand 3,935,303 7,112,500 1.6 Philippines Telecommunications 100,000 Philippine Long Distance Telephone Co. (ADR)(a) 4,311,241 5,912,500 1.4 Utilities--Electric 57,000 Manila Electric Co. (MERALCO) 'B' 497,246 530,080 0.1 Total Common Stocks in the Philippines 4,808,487 6,442,580 1.5 Portugal Telecommunications 30,900 Portugal Telecom, S.A. (ADR)(a) 578,602 710,700 0.2 Total Common Stocks in Portugal 578,602 710,700 0.2 Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 8,840,601 2.0 32,000 Telefonica de Espana S.A. (ADR)(a) 1,275,584 1,572,000 0.4 ------------ ------------ ------ 7,439,648 10,412,601 2.4 Utilities--Electric 154,800 Empresa Nacional de Electricidad S.A. (ADR)(a) 5,123,952 8,726,850 2.0 92,000 HidroElectrica Del Cantabrico S.A. 3,107,921 3,172,542 0.7 808,500 Iberdrola I S.A. 4,998,321 7,975,178 1.8 ------------ ------------ ------ 13,230,194 19,874,570 4.5 Total Common Stocks in Spain 20,669,842 30,287,171 6.9 Thailand Telecommunications 15,000 TelecomAsia Corporation Public Co., Ltd. PLC (ADR)(a) 328,050 397,500 0.1 Utilities--Electric 332,000 Electricity Generating Company of Thailand (EGCOMP) 296,433 1,317,460 0.3 Total Common Stocks in Thailand 624,483 1,714,960 0.4 United Telecommunications 771,000 British Telecommunications PLC 5,385,185 4,394,538 1.0 Kingdom 180,000 Vodafone Group PLC (ADR)(a) 5,355,931 6,367,500 1.5 ------------ ------------ ------ 10,741,116 10,762,038 2.5 Utilities--Electric 77,143 London Electricity PLC 1,201,329 871,915 0.2 76,752 National Grid Group PLC 246,312 230,021 0.1 445,000 PowerGen PLC 3,253,482 3,678,993 0.8 ------------ ------------ ------ 4,701,123 4,780,929 1.1 Total Common Stocks in the United Kingdom 15,442,239 15,542,967 3.6 United Telecommunications 31,000 AT&T Corp. 1,749,485 1,972,375 0.5 States 146,800 Ameritech Corp. 5,940,672 8,459,350 1.9 138,700 Bell Atlantic Corp. 7,358,558 9,171,538 2.1 236,800 BellSouth Corp. 6,828,233 9,442,400 2.2 120,000 Frontier Corp. 2,437,200 3,600,000 0.8 235,700 GTE Corp. 8,322,438 10,105,638 2.3 147,700 NYNEX Corp. 6,204,823 7,606,550 1.7 129,900 SBC Communications, Inc. 4,873,568 7,128,263 1.6 217,900 U S West Communications Group (c) 6,024,567 7,136,225 1.6 ------------ ------------ ------ 49,739,544 64,622,339 14.7 Utilities--Electric 289,500 Allegheny Power System, Inc. 7,707,195 8,431,687 1.9 207,200 Boston Edison Co. 5,530,724 5,723,900 1.3 321,962 CINergy Corp. 7,622,146 9,618,615 2.2 218,200 Consolidated Edison Co. of New York 6,893,524 7,118,775 1.6 138,900 DTE Energy Co. (d) 4,670,083 4,948,312 1.1 110,250 Dominion Resources, Inc. 4,427,302 4,354,875 1.0 193,000 Duke Power Co. 7,776,207 9,432,875 2.2 283,000 Edison International 6,379,546 4,952,500 1.1 282,300 General Public Utilities Corp. 8,552,046 9,421,762 2.2 290,200 Houston Industries, Inc. 7,082,367 6,565,775 1.5 244,800 NIPSCO Industries, Inc. 6,616,371 9,241,200 2.1 221,000 New York State Electric & Gas Corp. 7,952,312 5,221,125 1.2 185,700 Northeast Utilities Co. 4,974,996 4,131,825 0.9 180,500 PECO Energy Co. 5,532,539 5,099,125 1.2 150,000 Pacific Gas and Electric Company 4,135,500 3,843,750 0.9 323,000 PacifiCorp 6,465,176 6,702,250 1.5 192,000 Public Service Co. of Colorado 5,832,890 6,768,000 1.5 381,200 Southern Co. 6,665,086 9,101,150 2.1 177,300 Western Resources Co. 5,664,717 5,673,600 1.3 ------------ ------------ ------ 120,480,727 126,351,101 28.8
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks Cost Value Net Assets United Utilities--Gas 130,000 The Brooklyn Union Gas Co. $ 3,371,550 $ 3,396,250 0.8% States 226,000 The Coastal Corp. 6,038,593 8,305,500 1.9 (concluded) 236,000 Questar Corp. 6,554,436 7,434,000 1.7 127,300 Sonat, Inc. 3,309,934 4,264,550 1.0 ------------ ------------ ------ 19,274,513 23,400,300 5.4 Total Common Stocks in the United States 189,494,784 214,373,740 48.9 Total Investments in Common Stocks 345,586,107 410,486,291 93.5 Face Amount Fixed-Income Securities Australia Telecommuni- US$ 7,960,000 Telstra Corp., Ltd., 6.50% cations due 7/31/2003 8,115,578 7,880,400 1.8 Total Fixed-Income Securities in Australia 8,115,578 7,880,400 1.8 Korea Telecommuni- 2,500,000 Korea Telecom, 7.40% due 12/01/1999 2,499,500 2,539,600 0.6 cations Total Fixed-Income Securities in Korea 2,499,500 2,539,600 0.6 United Telecommuni- 3,500,000 Bell Cablemedia PLC, 11.95%* Kingdom cations due 7/15/2004 2,365,327 2,572,500 0.6 Total Fixed-Income Securities in the United Kingdom 2,365,327 2,572,500 0.6 United Telecommuni- 4,000,000 Rochester Telephone Corp., 9.25% States cations due 6/01/2000 4,111,200 4,439,200 1.0 Utilities-- 4,000,000 Consumer Power Co., 8.875% due Electric 11/15/1999 4,190,000 4,270,520 1.0 Total Fixed-Income Securities in the United States 8,301,200 8,709,720 2.0 Total Investments in Fixed-Income Securities 21,281,605 21,702,220 5.0 Short-Term Securities Repurchase 5,883,000 PaineWebber Group, Inc., purchased Agreements** on 2/29/1996 to yield 5.35% to 3/01/1996 5,883,000 5,883,000 1.3 Total Investments in Short-Term Securities 5,883,000 5,883,000 1.3 Total Investments $372,750,712 438,071,511 99.8 ============ Other Assets Less Liabilities 770,206 0.2 ------------ ------ Net Assets $438,841,717 100.0% ============ ====== Net Asset Class A--Based on net assets of $45,700,049 and Value: 3,270,748 shares outstanding $ 13.97 ============ Class B--Based on net assets of $387,749,247 and 27,847,725 shares outstanding $ 13.92 ============ Class C--Based on net assets of $2,919,847 and 209,895 shares outstanding $ 13.91 ============ Class D--Based on net assets of $2,472,574 and 176,860 shares outstanding $ 13.98 ============ *Represents a zero coupon bond; the interest rate shown is the effective yield at the time of purchase by the Fund. **Repurchase Agreements are fully collateralized by US Government & Agency Obligations. (a)American Depositary Receipts (ADR). (b)Each unit consists of 5 Global Depositary Receipts and 2 warrants of CESC Ltd. (c)U SWest Inc. spun off U SWest Media Group and changed its name to U S West Communications Group. (d)Formerly Detroit Edison Co.
PORTFOLIO INFORMATION Worldwide Investments as of 2/29/96 Top Ten Holdings Percent of (Equity Investments) Net Assets GTE Corp. 2.3% CINergy Corp. 2.2 BellSouth Corp. 2.2 Duke Power Co. 2.2 General Public Utilities Corp. 2.2 Veba AG 2.1 NIPSCO Industries, Inc. 2.1 Telecom Italia Mobile S.p.A. 2.1 Bell Atlantic Corp. 2.1 Southern Co. 2.1 Additions Edison International National Grid Group PLC Telecomunicacoes Brasileiras S.A.--Telebras (ADR) Deletions China Light &Power Co., Ltd. The Hong Kong &China Gas Co., Ltd. (Warrants) The Hong Kong Electric Holdings, Ltd. NICOR Inc. SCEcorp -----END PRIVACY-ENHANCED MESSAGE-----