-----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, C4JgeMZ6ny5PDjKbPXNUWhk2cAvuhypLqipz+Q9PCnNWzPzTZdhs92ukFhFRv5I1 l8/0UB1u1zkDvoVirEAqlQ== 0000928816-97-000318.txt : 19971009 0000928816-97-000318.hdr.sgml : 19971009 ACCESSION NUMBER: 0000928816-97-000318 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970831 FILED AS OF DATE: 19971008 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-30D SEC ACT: SEC FILE NUMBER: 811-06180 FILM NUMBER: 97692465 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 9066 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 N-30D 1 MERRILL LYNCH GLOBAL UTILITY FUND, INC. MERRILL LYNCH GLOBAL UTILITY FUND, INC. [FUND LOGO] STRATEGIC Performance Quarterly Report August 31, 1997 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 Thomas D. Jones, III, Secretary Custodian The Chase Manhattan Bank 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 dated and are subject to change. Merrill Lynch Global Utility Fund, Inc. Box 9011 Princeton, NJ 08543-9011 #11693 -- 8/97 [RECYCLE LOGO] Printed on post-consumer recycled paper MERRILL LYNCH GLOBAL UTILITY FUND, INC. [GRAPHIC PIE CHART OMITTED: SECTOR DIVERSIFICATION] Sector Diversification As a Percentage of Equities as of August 31, 1997 Telecommunications -- 43.6% Utilities -- Electric -- 39.1% Utilities -- Gas -- 14.2% Utilities -- Water -- 3.1% [GRAPHIC PIE CHART OMITTED: GEOGRAPHICAL DIVERSIFICATION] Geographical Diversification As a Percentage of Equities as of August 31, 1997 Europe -- 38.4% United States -- 35.8% Americas (Ex-US) -- 18.5% Asia/Pacific Basin -- 7.3% Merrill Lynch Global Utility Fund, Inc., August 31, 1997 DEAR SHAREHOLDER During the quarter ended August 31, 1997, investor perceptions regarding the prospects for the US economy shifted, creating greater volatility in the stock and bond markets. As the period began, increasing evidence of noninflationary economic growth boosted investor confidence when, as widely expected, the Federal Reserve Board chose to leave monetary policy unchanged at its July and August meetings. This increased confidence was reinforced further in late July by the passage of tax-cut and five-year balanced budget bills. However, by late August, the consensus outlook had changed, with forecasts of overheating growth and inflationary expectations. These concerns were reinforced by a large upward revision in second-quarter real gross domestic product growth from an original estimate of 2.2% to 3.6%. In contrast, employment data reported for August were weaker than expected as the United Parcel Service strike dampened job growth. Although there are few inflationary pressures at present, it remains to be seen whether economic activity will continue moderate enough to rule out future Federal Reserve Board monetary policy tightenings later this year. Outside of the United States, the most dramatic developments took place in Southeast Asia. The investment boom in many developing Asian economies came to an abrupt halt as the devaluation of the Thai baht sparked a series of currency devaluations and financial market volatility throughout the region. Countries have been forced to raise interest rates to support their currencies, and this trend may continue for some time. With higher debt-service costs, corporate profitability is likely to erode, and lower economic growth is expected. Portfolio Matters For the three-month period ended August 31, 1997, Merrill Lynch Global Utility Fund, Inc.'s Class A, Class B, Class C and Class D Shares had total returns of -0.11%, -0.31%, -0.35% and -0.25%, respectively. The Fund underperformed the +0.94% total return of the unmanaged Financial Times/Standard & Poor's (FT/S&P)--Actuaries World Utility Index for the August 31, 1997 quarter. (Results shown do not reflect sales charges and would be lower if sales charges were included. For complete performance information, including average annual total returns, see pages 4 -- 6 of this report to shareholders.) Diverging performance continued across various countries and regions during the August quarter as Fund performance was principally driven by overall market movements rather than utility industry fundamentals. During the month of August, the economic environment was particularly volatile both in the United States and abroad as currency problems plagued several Asian countries. A strong US dollar, combined with weakening exports, real estate speculation and financial leverage, resulted in Thailand devaluing its currency. Other countries in Asia also addressed similar issues, and their currencies and markets also were in a state of flux as speculators dominated the stock and bond markets. Fund performance was positively impacted by its 7% weighting in the Asia/Pacific Basin region as compared to 15.7% for the unmanaged FT/S&P--Actuaries World Utilities Index. The highest concentration of Fund assets in the region was in Australia, with 3.7% of net assets, followed by 1.5% in the Philippines. The Fund's positions in Thailand and Indonesia remained small. In addition, at August quarter-end the Fund had no significant holdings in Hong Kong, Singapore, Malaysia or Japan. Aside from a potential increase in bad debt accounts, currency devaluations may make it more expensive for companies to acquire goods and materials abroad. This, in turn, may result in lower revenues and profits. Thus, although valuation levels are becoming more attractive, the assumptions behind the estimates of economic growth in Asia may become more suspect. The currency crisis in Asia has had a spillover effect in South America. Brazil has been the hardest hit, in part because its market has done so well year-to-date, coupled with concerns over its current account position. Many economists and regional market experts continue to be positive about the financial health of the South American countries, particularly Brazil. The factors that resulted in the Asian currency turmoil, with the exception of the effects of the strong US dollar, are not evident in South American markets. Brazil has very sizable foreign reserves, and its government is strongly committed to its currency. As of August 31, 1997, 13.2% of the Fund's net assets was invested in South America (excluding the 1% of net assets invested in Mexico). During the August quarter, our largest country position in South America was Chile, which accounted for 5.4% of net assets, followed by Brazil with 2.8% of net assets. The relative valuations of these markets remain attractive, and the prospects for growth and profits improvement for utilities are better in this region than for many of the Asian markets. European stock markets also were volatile during the three months ended August 31, 1997, and followed the lead of the US market. However, Europe was the best-performing region for utility investments during the quarter. Strong performance by utility stocks in the United Kingdom and Italy helped the Fund's overall performance. Not including the United States, the Fund's largest country concentration was Italy, accounting for 12% of net assets at August quarter-end. The United Kingdom was the fourth-largest country concentration, with 4.6% of net assets. As of August 31, 1997, approximately 38% of the Fund's net assets was invested in Europe and 36% was invested in the United States. The performance of these markets was a significant benefit to overall Fund performance. In terms of the Fund's US-based utility holdings, the best-performing sectors, according to the unmanaged Standard & Poor's Utility Index, were natural gas and electrics, with telecommunications providing the weakest performance. Relative to this Index, the Fund had overweighted positions in both natural gas and electrics and was underweighted in the telecommunications sector. Investment Activities During the August quarter, we eliminated six holdings, reduced our positions in several companies and added seven new positions. We added Companhia Paranaense de Energia (Copel), a vertically integrated Brazilian electric utility whose concession area includes the state of Parana. With almost all of its installed capacity being hydroelectric and its service territory strategically located at the crossroads for gas pipelines from Argentina, estimated earnings per share growth in the 30% area seems achievable. We purchased EDP--Electricidade de Portugal, S.A. on the initial public offering, with the Portuguese government selling part of its stake in the company to the public. The company is a vertically integrated electric utility, and is the sole transmitter and largest producer and distributor of electricity in Portugal. During the August quarter, we also initiated small positions in two German electric utility companies, VIAG AG and RWE AG. These companies are positioned to benefit from upcoming changes in the German electricity laws. In the United States, we added Texas Utilities Holding Co. to the Fund's portfolio during the August quarter. The stock price came under pressure as a result of the failure of the Texas Legislature to pass a ruling on stranded costs (the difference between what a company paid for a generating plant and the current market value of the production from that plant). However, the company has been working closely with the Texas Public Utility Commission and the outcome is likely to be favorable. In the interim, the stock offers a safe and competitive current yield, in our view. We also added two US-based telecommunications stocks, AT&T Corporation and WorldCom, Inc. Following a meeting with AT&T's new chief financial officer who emphasized the company's commitment to its stated targets, coupled with the relative underperformance of the stock, we reinstated a small position. WorldCom is the fourth-largest facilities-based US long distance carrier. In addition, following the acquisition of MFS Communications, the company is also one of the largest competitive local exchange carriers. WorldCom also owns one of the leading global Internet service providers, UUNet. We believe that the company is well positioned to take advantage of changes in the telecommunications sector. 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 our upcoming annual shareholder report. Sincerely, /S/ARTHUR ZEIKEL Arthur Zeikel President /S/WALTER D. ROGERS Walter D. Rogers Vice President and Portfolio Manager September 24, 1997 PERFORMANCE DATA About Fund Performance Investors are able to purchase shares of the Fund through the Merrill Lynch Select PricingSM System, which offers four pricing alternatives: [bullet] 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. [bullet] 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. (There is no initial sales charge for automatic sales conversions.) [bullet] 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. [bullet] 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. Figures shown in the "Average Annual Total Return" tables as well as the total returns and cumulative total returns in the "Performance Summary" tables assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date. 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 8/31/97 5/31/97 8/31/96 % Change % Change Class A Shares $15.58 $15.75 $13.92 +15.42%(1) -1.08% Class B Shares 15.55 15.71 13.88 +15.54(1) -1.02 Class C Shares 15.51 15.68 13.86 +15.41(1) -1.08 Class D Shares 15.59 15.77 13.93 +15.41(1) -1.14 Class A Shares -- Total Return +19.38(2) -0.11(3) Class B Shares -- Total Return +18.48(4) -0.31(5) Class C Shares -- Total Return +18.37(6) -0.35(7) Class D Shares -- Total Return +19.05(8) -0.25(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 $0.446 per share capital gains distributions. (2) Percent change includes reinvestment of $0.510 per share ordinary income dividends and $0.446 per share capital gains distributions. (3) Percent change includes reinvestment of $0.159 per share ordinary income dividends. (4) Percent change includes reinvestment of $0.380 per share ordinary income dividends and $0.446 per share capital gains distributions. (5) Percent change includes reinvestment of $0.117 per share ordinary income dividends. (6) Percent change includes reinvestment of $0.382 per share ordinary income dividends and $0.446 per share capital gains distributions. (7) Percent change includes reinvestment of $0.121 per share ordinary income dividends. (8) Percent change includes reinvestment of $0.471 per share ordinary income dividends and $0.446 per share capital gains distributions. (9) Percent change includes reinvestment of $0.147 per share ordinary income dividends.
Average Annual Total Return % Return Without % Return With Sales Charge Sales Charge** Class A Shares* Year Ended 6/30/97 +18.95% +14.19% Five Years Ended 6/30/97 +13.10 +12.18 Inception (12/28/90) through 6/30/97 +12.75 +12.05 * Maximum sales charge is 4%. ** Assuming maximum sales charge. % Return % Return Without CDSC With CDSC** Class B Shares* Year Ended 6/30/97 +18.06% +14.06% Five Years Ended 6/30/97 +12.23 +12.23 Inception (12/28/90) through 6/30/97 +11.89 +11.89 * 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 6/30/97 +17.99% +16.99% Inception (10/21/94) through 6/30/97 +15.61 +15.61 * 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 6/30/97 +18.64% +13.90% Inception (10/21/94) through 6/30/97 +16.26 +14.51 * 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 1996 13.86 14.80 0.446 0.525 +14.22 1/1/97 --8/31/97 14.80 15.58 -- 0.265 + 7.06 Total $0.730 Total $3.154 Cumulative total return as of 8/31/97: +111.58%** * Figures may include short-term capital gains distributions. ** Figures 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 1994 13.63 11.81 -- 0.379 -10.62 1995 11.81 13.83 0.245 0.380 +22.73 1996 13.83 14.78 0.446 0.402 +13.34 1/1/97 -- 8/31/97 14.78 15.55 -- 0.193 + 6.51 Total $0.730 Total $2.517 Cumulative total return as of 8/31/97: +100.96%** * Figures may include short-term capital gains distributions. ** Figures 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 1996 13.82 14.75 0.446 0.403 +13.21 1/1/97 -- 8/31/97 14.75 15.51 -- 0.198 + 6.49 Total $0.691 Total $1.101 Cumulative total return as of 8/31/97: +42.93%** * Figures may include short-term capital gains distributions. ** Figures 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 1996 13.90 14.81 0.446 0.488 +13.66 1/1/97 -- 8/31/97 14.81 15.59 -- 0.244 + 6.91 Total $0.691 Total $1.301 Cumulative total return as of 8/31/97: +45.27%** * Figures may include short-term capital gains distributions. ** Figures do not include sales charge; results would be lower if sales charge was included.
Merrill Lynch Global Utility Fund, Inc., August 31, 1997 SCHEDULE OF INVESTMENTS (in US dollars) Shares Percent of COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets Argentina Telecommunications 200,000 Telecom Argentina STET S.A. (ADR)(b) $3,770,294 $5,525,000 1.6% 200,000 Telefonica de Argentina S.A. (ADR)(b) 4,140,594 6,937,500 2.0 ----------- ------------ ----- 7,910,888 12,462,500 3.6 Utilities -- Electric 6,600 Central Costanera S.A. (ADR)(b) 158,400 224,441 0.1 ----------- ------------ ----- Total Common Stocks in Argentina 8,069,288 12,686,941 3.7 =========== ============ ===== Australia Utilities -- Gas 2,000,000 Australian Gas & Light Co., Ltd. 5,280,752 12,592,758 3.7 ----------- ------------ ----- Total Common Stocks in Australia 5,280,752 12,592,758 3.7 =========== ============ ===== Austria Utilities -- Gas 41,820 Energie-Versorgung Niederoesterreich AG (EVN) 3,050,014 5,007,295 1.5 ----------- ------------ ----- Total Common Stocks in Austria 3,050,014 5,007,295 1.5 =========== ============ ===== Brazil Telecommunications 45,000 Telecomunicacoes Brasileiras S.A. -- Telebras (ADR)(b) 2,176,897 5,310,000 1.5 Utilities -- Electric 300,000 Companhia Paranaense de Energia (Copel) (ADR)(b) 5,400,000 4,312,500 1.3 ----------- ------------ ----- Total Common Stocks in Brazil 7,576,897 9,622,500 2.8 =========== ============ ===== Canada Telecommunications 140,000 BC Telecom, Inc. 2,593,297 3,368,876 1.0 Utilities -- Electric 369,100 Nova Scotia Power Co. 3,476,309 3,829,280 1.1 Utilities -- Gas 200,000 Transcanada Pipeline Co. Ltd. (ADR)(b) 3,147,485 3,750,000 1.1 ----------- ------------ ----- Total Common Stocks in Canada 9,217,091 10,948,156 3.2 =========== ============ ===== Chile Telecommunications 162,150 Compania de Telecomunicaciones de Chile S.A. (ADR)(b) 2,877,833 4,874,634 1.4 Utilities -- Electric 86,444 Chilgener S.A. (ADR)(b) 2,023,851 2,355,599 0.7 368,600 Distribuidora Chilectra Metropolitana S.A. (ADR)(b) 4,011,718 11,364,749 3.3 ----------- ------------ ----- 6,035,569 13,720,348 4.0 ----------- ------------ ----- Total Common Stocks in Chile 8,913,402 18,594,982 5.4 =========== ============ ===== Denmark Telecommunications 160,000 Tele Danmark A/S (ADR)(b) 3,764,160 4,270,000 1.2 ----------- ------------ ----- Total Common Stocks in Denmark 3,764,160 4,270,000 1.2 =========== ============ ===== France Utilities -- Water 91,075 Generale des Eaux S.A. 9,841,922 10,203,017 3.0 89,715 Generale des Eaux S.A. (Warrants)(a) 0 50,402 0.0 ----------- ------------ ----- Total Common Stocks & Warrants in France 9,841,922 10,253,419 3.0 =========== ============ ===== Germany Telecommunications 24,300 Deutsche Telekom AG 462,162 486,486 0.2 Utilities -- Electric 40,000 RWE AG 1,799,334 1,812,924 0.5 4,000 VIAG AG 1,764,306 1,667,223 0.5 70,000 Veba AG 2,284,445 3,814,926 1.1 ----------- ------------ ----- 5,848,085 7,295,073 2.1 ----------- ------------ ----- Total Common Stocks in Germany 6,310,247 7,781,559 2.3 =========== ============ ===== Hong Kong Utilities -- Gas 100,000 The Hong Kong and China Gas Co. Ltd. (Warrants)(a) 0 105,820 0.0 ----------- ------------ ----- Total Warrants in Hong Kong 0 105,820 0.0 =========== ============ ===== Indonesia Telecommunications 5,500 P.T. Indonesian Satellite Corp. (Indosat) (ADR)(b) 176,275 119,281 0.0 29,600 P.T. Telekomunikasi Indonesia (Persero) (ADR)(b) 532,800 580,900 0.2 ----------- ------------ ----- Total Common Stocks in Indonesia 709,075 700,181 0.2 =========== ============ ===== Italy Telecommunications 3,900,000 Telecom Italia Mobile S.p.A. 2,605,057 13,214,326 3.8 2,055,555 Telecom Italia S.p.A. 3,497,148 12,246,854 3.6 2,891,700 Telecom Italia S.p.A. (Registered Non-Convertible) 5,447,174 10,241,780 3.0 ----------- ------------ ----- 11,549,379 35,702,960 10.4 Utilities -- Gas 1,786,300 Italgas Torino S.p.A. 5,169,953 5,488,887 1.6 ----------- ------------ ----- Total Common Stocks in Italy 16,719,332 41,191,847 12.0 =========== ============ ===== Korea Utilities -- Electric 178,300 Korea Electric Power Corp. (KEPCO) (ADR)(b) 3,500,925 2,908,519 0.8 ----------- ------------ ----- Total Common Stocks in Korea 3,500,925 2,908,519 0.8 =========== ============ ===== Mexico Telecommunications 105,000 Telefonos de Mexico, S.A. de C.V. (ADR)(b) 5,594,445 4,816,875 1.4 ----------- ------------ ----- Total Common Stocks in Mexico 5,594,445 4,816,875 1.4 =========== ============ ===== New Zealand Telecommunications 56,000 Telecom Corporation of New Zealand Ltd. (ADR)(b) 1,230,138 2,198,000 0.6 ----------- ------------ ----- Total Common Stocks in New Zealand 1,230,138 2,198,000 0.6 =========== ============ ===== Peru Telecommunications 195,000 Telefonica del Peru S.A. (ADR)(b) 3,997,500 4,558,125 1.3 ----------- ------------ ----- Total Common Stocks in Peru 3,997,500 4,558,125 1.3 =========== ============ ===== Philippines Telecommunications 188,000 Philippine Long Distance Telephone Co. (ADR)(b) 4,077,062 4,747,000 1.4 Utilities -- Electric 96,330 Manila Electric Co. (MERALCO) 'B' 497,246 329,634 0.1 ----------- ------------ ----- Total Common Stocks in the Philippines 4,574,308 5,076,634 1.5 =========== ============ ===== Portugal Telecommunications 205,740 Portugal Telecom, S.A. (ADR)(b) 4,576,844 7,560,945 2.2 Utilities -- Electric 10,820 EDP -- Electricidade de Portugal, S.A. (ADR)(b) 279,589 331,363 0.1 ----------- ------------ ----- Total Common Stocks in Portugal 4,856,433 7,892,308 2.3 =========== ============ ===== Spain Telecommunications 537,300 Telefonica de Espana, S.A. 6,164,064 13,967,325 4.1 Utilities -- Electric 519,200 Empresa Nacional de Electricidad, S.A. (Endesa) (ADR)(b) 4,566,202 10,254,200 3.0 46,000 HidroElectrica Del Cantabrico, S.A. 1,553,961 1,737,677 0.5 808,500 Iberdrola I, S.A. 4,998,321 9,098,618 2.6 ----------- ------------ ----- 11,118,484 21,090,495 6.1 ----------- ------------ ----- Total Common Stocks in Spain 17,282,548 35,057,820 10.2 =========== ============ ===== Thailand Telecommunications 15,000 TelecomAsia Corporation Public Co., Ltd. PLC (ADR)(b) 328,050 142,500 0.0 Utilities -- Electric 332,000 Electricity Generating Company of Thailand (EGCOMP) 296,433 582,456 0.2 ----------- ------------ ----- Total Common Stocks in Thailand 624,483 724,956 0.2 =========== ============ ===== United Kingdom Telecommunications 671,000 British Telecommunications PLC 4,688,465 4,331,681 1.2 100,000 Vodafone Group PLC (ADR)(b) 2,962,040 5,093,750 1.5 ----------- ------------ ----- 7,650,505 9,425,431 2.7 Utilities -- Electric 208,000 National Power PLC 1,723,671 1,902,126 0.5 370,000 PowerGen PLC 2,705,142 4,681,092 1.4 ----------- ------------ ----- 4,428,813 6,583,218 1.9 ----------- ------------ ----- Total Common Stocks in the United Kingdom 12,079,318 16,008,649 4.6 =========== ============ ===== United States Telecommunications 46,000 AT&T Corporation 1,848,510 1,794,000 0.5 70,000 Ameritech Corp. 2,996,450 4,388,125 1.3 47,616 Bell Atlantic Corporation+ 2,819,654 3,446,208 1.0 91,800 BellSouth Corp. 2,702,773 4,039,200 1.2 108,000 Frontier Corp. 2,193,480 2,382,750 0.7 85,000 GTE Corp. 3,145,450 3,787,813 1.1 10,046 Lucent Technologies, Inc. 493,515 782,332 0.2 69,900 SBC Communications, Inc. 2,939,711 3,800,813 1.1 68,000 U S West Communications Group 1,895,186 2,435,250 0.7 108,000 WorldCom, Inc. 3,572,937 3,233,250 0.9 ----------- ------------ ----- 24,607,666 30,089,741 8.7 Utilities -- Electric 156,000 Allegheny Power System, Inc. 4,213,210 4,533,750 1.3 87,200 Boston Edison Co. 2,722,264 2,463,400 0.7 166,962 CINergy Corp. 4,045,124 5,520,181 1.6 84,200 Consolidated Edison Co. of New York 2,991,744 2,578,625 0.8 118,900 DTE Energy Co. 4,092,463 3,522,412 1.0 95,250 Dominion Resources, Inc. 3,965,452 3,429,000 1.0 85,000 Duke Energy Co. 3,180,276 4,117,187 1.2 283,000 Edison International 6,379,546 6,827,375 2.0 188,300 GPU, Inc. 5,864,594 6,331,587 1.8 75,200 Houston Industries, Inc. 1,840,708 1,522,800 0.4 184,800 NIPSCO Industries, Inc. 5,394,297 7,542,150 2.2 124,000 New Century Energies, Inc. (c) 3,798,642 5,006,500 1.5 106,000 New York State Electric & Gas Corp. 3,787,564 2,583,750 0.7 140,500 PECO Energy Co. 4,344,731 3,345,656 1.0 183,000 PacifiCorp 3,657,980 3,797,250 1.1 91,200 Southern Co. 2,022,770 1,920,900 0.6 100,000 Texas Utilities Holding Co. 3,506,000 3,487,500 1.0 ----------- ------------ ----- 65,807,365 68,530,023 19.9 Utilities -- Gas 130,000 The Brooklyn Union Gas Co. 3,371,550 3,924,375 1.1 102,500 The Coastal Corp. 2,726,261 5,919,375 1.7 30,000 KN Energy, Inc. 1,214,183 1,245,000 0.4 136,000 Questar Corp. 3,729,821 5,440,000 1.6 74,300 Sonat, Inc. 2,229,714 3,701,069 1.1 ----------- ------------ ----- 13,271,529 20,229,819 5.9 ----------- ------------ ----- Total Common Stocks in the United States 103,686,560 118,849,583 34.5 =========== ============ ===== Total Investments in Common Stocks & Warrants 236,878,838 331,846,927 96.4 =========== ============ ===== Face Amount Short-Term Securities Commercial Paper* $9,519,000 General Motors Acceptance Corp., 5.69% due 9/02/1997 9,514,486 9,514,486 2.8 ----------- ------------ ----- Total Investments in Short-Term Securities 9,514,486 9,514,486 2.8 ============ ============ ===== Total Investments $246,393,324 341,361,413 99.2 ============ Other Assets Less Liabilities 2,752,838 0.8 ------------ ----- Net Assets $344,114,251 100.0% ============ ===== Net Asset Class A -- Based on net assets of $37,407,444 Value: and 2,401,106 shares outstanding $15.58 ============ Class B -- Based on net assets of $295,810,801 and 19,024,779 shares outstanding $15.55 ============ Class C -- Based on net assets of $5,029,154 and 324,169 shares outstanding $15.51 ============ Class D -- Based on net assets of $5,866,852 and 376,260 shares outstanding $15.59 ============ * Commercial Paper is traded on a discount basis; the interest rate shown is the discount rate at the time of purchase by the Fund. + Reflects shares acquired in merger with NYNEX Corp. (a) Warrants entitle the Fund to purchase a predetermined number of shares of common stocks. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date. (b) American Depositary Receipts (ADR). (c) Public Service Company of Colorado merged with South Western Public Service Co. to form New Century Energies, Inc.
PORTFOLIO INFORMATION Worldwide Investments as of 8/31/97 Ten Largest Holdings Percent of (Equity Investments) Net Assets Telefonica de Espana, S.A. 4.1% Telecom Italia Mobile S.p.A. 3.8 Australian Gas & Light Co., Ltd. 3.7 Telecom Italia S.p.A. 3.6 Distribuidora Chilectra Metropolitana S.A. (ADR) 3.3 Empresa Nacional de Electricidad, S.A. (Endesa) (ADR) 3.0 Telecom Italia S.p.A. (Registered Non-Convertible) 3.0 Generale des Eaux S.A. 3.0 Iberdrola I, S.A. 2.6 Portugal Telecom, S.A. (ADR) 2.2 Additions (Equity Investments) AT&T Corporation Companhia Paranaense de Energia (Copel) (ADR) EDP -- Electricidade de Portugal, S.A. (ADR) RWE AG Texas Utilities Holding Co. VIAG AG WorldCom, Inc. Deletions (Equity Investments) AGL Resources Inc. American Water Works Co., Inc. Elektrowatt AG The Hong Kong and China Gas Co. Ltd. Seat S.p.A. Telecom Malaysia BHD -----END PRIVACY-ENHANCED MESSAGE-----