MERRILL LYNCH
BASIC VALUE
FUND, INC.
FUND LOGO
Semi-Annual Report
December 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
Basic Value Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MERRILL LYNCH BASIC VALUE FUND, INC.
TO OUR SHAREHOLDERS
Volatility in the US financial markets continued during the
December quarter, largely prompted by concerns of increasing
inflationary pressures. The possibility of continued monetary
policy tightening by the Federal Reserve Board was predominant in
the minds of investors throughout most of the period. Therefore,
there was little surprise in mid-November when the central bank
announced the sixth increase in short-term interest rates in
1994. Early in the period, the weakness of the US dollar in
foreign exchange markets prompted declines in US stock and bond
prices, but some strengthening of the US currency has occurred
recently.
The manufacturing sector was the driving force behind the US
economy through the final quarter of the year, making an
important contribution to the substantial increase in corporate
earnings. US companies have been successful at containing labor
costs, which are an important component of the inflation outlook.
Although consumer spending grew at a slower pace than in previous
economic recoveries, purchases of vehicles and household durable
goods rose in the latter months of 1994. Despite the relatively
modest rise in consumer spending, the personal savings rate fell
to an all-time annual low in 1994.
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 likely. The core
inflation rate rose less than 3% in 1994 following a 3% increase
in 1993, the best sustained inflation performance in 30 years. It
is not likely that such positive inflation results will be
duplicated in 1995. In addition, investor interest in the new
year will also be focused on the progress that the new Congress
makes on both reducing spending and the Federal budget deficit
and passing tax cuts that promote savings and investment.
Legislative progress, combined with continued indications of
moderate and sustainable levels of economic growth,
would be positive for the US capital markets. However,
the lagged effects of higher interest rates could slow the
economy sharply and with it, the growth of corporate profits.
<PAGE>
Portfolio Matters
Security purchases during the final quarter of 1994 amounted to
$239 million and were comprised of additions to 28 existing
positions and one new commitment to the portfolio. The Fund's
security sales totaled $71 million, with reductions in nine
holdings and one elimination. At year-end 1994, the Fund's cash
position was 17.3% of net assets, down from 19.0% at the end of
the September quarter. Fund assets increased in 1994 to over $4.2
billion from about $3.8 billion at the end of 1993. New assets
invested in the Fund during the year exceeded $400 million.
We had reduced our holdings in General Motors Corp. early in
1994. Clearly we should have eliminated the position as the stock
came under severe pressure in response to some internal General
Motors Corp. problems and increasing interest rates, which
adversely affected all of the auto manufacturers. From its high
in early 1994 to the recent low, the stock declined over 40%. At
recent price levels we felt the adversities were amply
discounted, and we anticipate a worthwhile earnings gain this
year. Accordingly, we substantially increased the position and
the stock is now our eighth-largest holding.
We continued to add to the Deere & Co. position, which is now our
second-largest holding. In our September quarterly report, we
discussed the valuation parameters of this leading farm and
construction equipment manufacturer; the subsequent earnings
report for the October fiscal year met our expectations. We
continue to be impressed with both the secular and cyclical
prospects for this company, and its shares remain very reasonably
priced.
As we have been doing since the initial purchase in the June 1994
quarter, we added to the GTE Corp. position during the December
quarter, and the stock is now our tenth-largest holding. In an
uncertain market environment, we are comfortable with this stock's
defensive characteristics and dividend yield in excess of 6%.
Adding to Exxon Corp. was also somewhat defensive and increases
our already large holdings in the international oil area.
These additions, General Motors Corp., Deere & Co., GTE Corp.,
and Exxon Corp., accounted for about 40% of the December quarter
purchases.
<PAGE>
The one new position in the December quarter was an electric
utility stock, CINergy Corp., which is a holding company for The
Cincinnati Gas and Electric Co. and PSI Energy. As with virtually
all electric utilities, the stock has been weak, reflecting
interest rate increases. At our entry price, we believe
additional risks are small and the recovery potential, combined
with a generous yield, justified purchase. We also modestly
increased positions in other existing electric utility holdings,
an area that was among the hardest hit in 1994.
Our security sales in the fourth quarter were very moderate, in
fact the lowest in a number of years, as stock prices were
generally under pressure during the quarter and we usually prefer
to sell during periods of strength. The largest partial sale was
Digital Equipment Corp. This has not been a successful investment
for us thus far but we did add substantially to the holding at
very attractive prices around mid-year. The stock subsequently
advanced about 50%, and we sold some very high cost stock to take
advantage of the price bounce.
In Conclusion
Despite the disparity between security purchases ($239 million)
and security sales ($71 million) in the fourth quarter of 1994,
our cash equivalent position remained high at 17.3% of net
assets. At the beginning of 1994, the cash equivalent position of
the portfolio was providing an annualized rate of return of
3.28%. As interest rates increased throughout the year, so did
the return on cash reserves. At year-end 1994, the annualized
return for cash reserves was 5.91%. This yield is very
competitive with the recent return on common stocks in general.
Accordingly, there has been no urgency to aggressively commit the
cash portion of the portfolio. Essentially what we did throughout
the year was to invest the new money coming into the Fund while
maintaining a high cash position. In the prevailing environment,
this seems the most prudent course of action.
Thank you for your investment in Merrill Lynch Basic Value Fund,
Inc., and we look forward to reviewing our outlook and strategy
again in our upcoming quarterly report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Paul M. Hoffmann)
Paul M. Hoffmann
Vice President and Portfolio Manager
January 12, 1995
<PAGE>
PERFORMANCE DATA
About Fund Performance
Since October 21, 1994, investors have been 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 5.25% 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 0.75% and an account maintenance fee of 0.25%. These
shares automatically convert to Class D Shares after 8 years.
* Class C Shares are subject to a distribution fee of 0.75% 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 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
Performance data for the Fund's Class A and Class B Shares are
presented in the "Performance Summary" and "Average Annual Total
Return" tables on pages 3 and 5. The "Results of a $1,000 Investment
Since Inception--Class A Shares" table on page 4 illustrates the
performance of a $1,000 Investment in Class A Shares made at the
Fund's inception (assuming the maximum initial sales charge of
5.25% through December 31, 1994. "Aggregate Total Return" tables
for Class C and Class D Shares are also presented below. Data for
all of the Fund's shares, including Class C and Class D Shares,
are presented in the "Recent Performance Results" table.
The "Recent Performance Results" table on page 4 shows investment
results before the deduction of any sales charges for Class A and
Class B Shares for the 12-month and 3-month periods ended December
31, 1994 and for Class C and Class D Shares for the period since
inception through December 31, 1994. All data in this table assume
imposition of the actual total expenses incurred by each class of
shares during the relevant period.
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.
<PAGE>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/94 + 1.97% - 3.39%
Five Years Ended 12/31/94 + 8.74 + 7.57
Ten Years Ended 12/31/94 +13.56 +12.95
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/94 +0.88% -2.93%
Five Years Ended 12/31/94 +7.63 +7.63
Inception (10/21/88)
through 12/31/94 +8.56 +8.56
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced
to 0% after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94)
through 12/31/94 -1.81% -2.77%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced
to 0% after one year.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/21/94)
through 12/31/94 -1.64% -6.80%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (continued)
Results of a $1,000 Investment Since Inception--Class A Shares
(5.25% current sales charge--$947.50 net amount invested; assuming
reinvestment of all dividends and capital gains distributions.)
A mountain chart depicting the growth of an investment in the
Fund's Class A Shares from $947.50 on July 7, 1977 to $10,757.92
on December 31, 1994.
<TABLE>
Recent Performance Results*
<CAPTION>
12 Month 3 Month
12/31/94 9/30/94++ 12/31/93 % Change % Change++
<S> <C> <C> <C> <C> <C>
ML Basic Value Fund Class A Shares* $22.35 $23.04 $23.37 -1.06%(1) -2.56%(2)
ML Basic Value Fund Class B Shares* 22.15 22.78 23.19 -1.16(1) -2.32(2)
ML Basic Value Fund Class C Shares* 22.07 22.92 -- -- -3.27(2)
ML Basic Value Fund Class D Shares* 22.35 23.19 -- -- -3.19
Dow Jones Industrial Average** 3,834.44 3,843.19 3,754.09 +2.14 -0.23
Standard & Poor's 500 Index** 459.27 462.69 466.45 -1.54 -0.74
ML Basic Value Fund Class A Shares--Total Return* +1.97(3) -0.97(4)
ML Basic Value Fund Class B Shares--Total Return* +0.88(5) -1.24(6)
ML Basic Value Fund Class C Shares--Total Return* -- -1.81(7)
ML Basic Value Fund Class D Shares--Total Return* -- -1.64(8)
Dow Jones Industrial Average--Total Return** +4.99 +0.48
Standard & Poor's 500 Index--Total Return** +1.30 -0.02
<PAGE>
<FN>
*Investment results shown do not reflect sales charges; results shown would be lower
if a sales charge was included.
**An unmanaged broad-based index comprised of common stocks. Total investment returns
for unmanaged indexes are based on estimates.
++Investment returns shown for Class C and Class D Shares are since inception (10/21/94).
(1)Percent change includes reinvestment of $0.784 per share capital gains distributions.
(2)Percent change includes reinvestment of $0.099 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.692 per share ordinary income dividends
and $0.784 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.359 per share ordinary income dividends
and $0.099 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.464 per share ordinary income dividends
and $0.784 per share capital gains distributions.
(6)Percent change includes reinvestment of $0.242 per share ordinary income dividends
and $0.099 per share capital gains distributions.
(7)Percent change includes reinvestment of $0.329 per share ordinary income dividends
and $0.099 per share capital gains distributions.
(8)Percent change includes reinvestment of $0.353 per share ordinary income dividends
and $0.099 per share capital gains distributions.
</TABLE>
PERFORMANCE DATA (concluded)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
7/1/77--12/31/77 $ 9.60 $ 9.91 -- -- + 3.23%
1978 9.91 9.61 $ 0.270 $ 0.490 + 4.65
1979 9.61 11.46 0.460 0.550 +31.24
1980 11.46 12.46 0.940 0.600 +23.92
1981 12.46 10.62 1.370 0.690 + 1.12
1982 10.62 12.28 0.310 0.680 +28.25
1983 12.28 14.31 0.920 0.610 +30.52
1984 14.31 13.38 1.130 0.680 + 7.08
1985 13.38 15.79 1.020 0.640 +32.17
1986 15.79 17.06 0.860 0.580 +17.86
1987 17.06 15.75 1.338 0.973 + 4.36
1988 15.75 17.90 0.655 0.749 +22.73
1989 17.90 19.94 0.226 0.872 +17.54
1990 19.94 16.09 0.303 0.969 -13.07
1991 16.09 19.36 0.272 0.772 +27.23
1992 19.36 20.34 0.325 0.680 +10.36
1993 20.34 23.37 0.726 0.702 +22.16
1994 23.37 22.35 0.784 0.692 + 1.97
------- -------
Total $11.909 Total $11.929
Cumulative total return as of 12/31/94: +1,035.40%**
<PAGE>
<FN>
*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.
</TABLE>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/88--12/31/88 $18.79 $17.89 $0.352 $0.361 - 0.96%
1989 17.89 19.83 0.226 0.756 +16.33
1990 19.83 16.01 0.303 0.781 -13.92
1991 16.01 19.25 0.272 0.583 +25.91
1992 19.25 20.21 0.325 0.481 + 9.24
1993 20.21 23.19 0.726 0.484 +20.93
1994 23.19 22.15 0.784 0.464 + 0.88
------ ------
Total $2.988 Total $3.910
Cumulative total return as of 12/31/94: +66.40%**
<FN>
*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.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Value Percent of
Industry Held Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Discount from Book Value
Metals/Non-Ferrous 1,600,000 ASARCO Inc. $ 40,877,630 $ 45,600,000 1.0%
Insurance 800,000 Aetna Life & Casualty Co. 35,195,218 37,700,000 0.9
Savings & Loans 1,850,000 Ahmanson (H.F.) & Co. 32,200,305 29,831,250 0.7
Insurance 260,000 American National Insurance Co. 9,749,442 12,220,000 0.3
Insurance 597,000 CIGNA Corp. 31,172,450 37,984,125 0.9
Banking 1,400,000 The Chase Manhattan Corp. 30,367,190 48,125,000 1.1
Insurance 600,000 The Continental Corp. 12,064,862 11,400,000 0.3
Utilities--Electric 1,500,000 Entergy Corp. 31,330,768 32,812,500 0.8
Retail 1,500,000 ++Federated Department Stores, Inc. 24,285,000 28,875,000 0.7
Retail 3,000,000 Kmart Corp. 59,982,222 39,000,000 0.9
Telecommunications 1,280,000 Telefonica de Espana, S.A. (ADR)* 37,922,666 44,960,000 1.1
Savings & Loans 1,000,000 Washington Mutual Savings Bank 15,851,362 16,625,000 0.4
-------------- -------------- ------
360,999,115 385,132,875 9.1
<PAGE>
Below-Average Price/Earnings Ratio
Insurance 600,000 The Allstate Corp. 16,316,532 14,175,000 0.3
Insurance 2,000,000 American General Corp. 34,620,231 56,500,000 1.3
Steel 1,400,000 ++Bethlehem Steel Corp. 19,991,398 25,200,000 0.6
Banking 2,400,000 Citicorp 61,838,702 99,300,000 2.4
Financial Services 800,000 Dean Witter, Discover & Co. 20,456,508 27,100,000 0.6
Farm & Construction
Equipment 1,950,000 Deere & Co. 109,406,448 129,187,500 3.1
Banking 1,150,000 First Interstate Bancorp 53,035,168 77,768,750 1.8
Automotive 2,250,000 Ford Motor Co. 47,143,458 63,000,000 1.5
Automotive 2,200,000 General Motors Corp. 95,123,713 92,950,000 2.2
Conglomerates 1,000,000 ITT Corp. 46,914,030 88,625,000 2.1
Machinery 750,000 Ingersoll-Rand Co. 16,066,393 23,625,000 0.6
Information Processing 1,450,000 International Business Machines Corp. 91,919,847 106,575,000 2.5
Paper & Forest
Products 1,000,000 International Paper Co. 55,866,813 75,375,000 1.8
Aerospace & Defense 200,000 Lockheed Corp. 6,827,150 14,525,000 0.3
Hospital Management 1,200,000 National Medical Enterprises, Inc. 12,440,223 16,950,000 0.4
Semiconductors 1,467,200 ++National Semiconductor Corp. 16,086,389 28,610,400 0.7
Banking 1,750,000 NationsBank Corp. 73,228,142 78,968,750 1.9
Banking 2,000,000 Norwest Corp. 25,586,162 46,750,000 1.1
Insurance 1,400,000 PartnerRe Holdings Ltd. 29,498,937 28,875,000 0.7
Electrical Equipment 2,500,000 Philips Electronics N.V. 43,971,261 73,437,500 1.7
Retail 3,100,000 Sears, Roebuck & Co. 114,099,842 142,600,000 3.4
Information Processing 1,800,000 Tandem Computers Inc. 21,197,269 30,825,000 0.7
Insurance 1,700,000 Travelers Inc. 66,123,844 55,250,000 1.3
Steel 800,000 USX--US Steel Group 21,961,346 28,400,000 0.7
Chemicals 1,200,000 Union Carbide Corp. 20,616,691 35,250,000 0.8
Information Processing 3,700,000 ++Unisys Corp. 43,485,967 31,912,500 0.8
Aerospace & Defense 450,000 United Technologies Corp. 22,695,049 28,293,750 0.7
-------------- -------------- ------
1,186,517,513 1,520,029,150 36.0
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Value Percent of
Industry Held Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Above-Average Yield
Oil/Domestic 600,000 Atlantic Richfield Co. $ 59,961,351 $ 61,050,000 1.5%
Real Estate
Investment Trust 700,000 Avalon Properties, Inc. 14,548,710 16,100,000 0.4
Telecommunications 800,000 Bell Atlantic Corp. 33,212,901 39,800,000 0.9
Pharmaceutical 1,150,000 Bristol-Myers Squibb Co. 65,372,906 66,556,250 1.6
Oil--International 1,500,000 Chevron Corp. 47,205,854 66,937,500 1.6
Utilities--Electric 600,000 CINergy Corp. 14,123,620 14,025,000 0.3
Banking 700,000 Citicorp (Pfd. P) 10,325,000 13,387,500 0.3
Utilities--Electric 1,200,000 Consolidated Edison Co. of New York, Inc. 27,027,340 30,900,000 0.7
Utilities--Electric 637,500 DPL Inc. 6,204,369 13,068,750 0.3
Oil Services &
Equipment 2,800,000 Dresser Industries, Inc. 55,080,682 52,850,000 1.3
Oil--International 1,000,000 Exxon Corp. 50,944,590 60,750,000 1.4
Telecommunications 2,600,000 GTE Corp. 81,123,565 78,975,000 1.9
Chemicals 400,000 Imperial Chemical Industries PLC (ADR)* 25,771,805 18,600,000 0.4
Real Estate
Investment Trust 440,000 Irvine Apartment Communities, Inc. 7,758,147 7,205,000 0.2
Real Estate
Investment Trust 700,000 Liberty Property Trust 14,155,230 13,737,500 0.3
Real Estate
Investment Trust 500,000 The Mills Corp. 11,734,125 9,062,500 0.2
Oil--International 1,500,000 Mobil Corp. 78,457,147 126,375,000 3.0
Utilities--Electric 1,000,000 NIPSCO Industries, Inc. 20,293,522 29,750,000 0.7
Oil--Domestic 2,100,000 Occidental Petroleum Corp. 43,860,194 40,425,000 1.0
Utilities--Electric 1,200,000 PECO Energy Co. 28,784,191 29,400,000 0.7
Tobacco 1,800,000 Philip Morris Cos. Inc. 98,830,034 103,500,000 2.4
Utilities--Electric 1,000,000 Public Service Enterprise Group Inc. 26,399,945 26,500,000 0.6
Aluminum 250,000 Reynolds Metals Co. (Pfd. P) 11,937,200 12,093,750 0.3
Oil--International 1,150,000 Royal Dutch Petroleum Co. (ADR)* 70,562,758 123,625,000 2.9
Real Estate
Investment Trust 1,200,000 Simon Property Group, Inc. 27,544,973 29,100,000 0.7
Real Estate
Investment Trust 500,000 Summit Properties Inc. 9,602,500 9,625,000 0.2
Oil--International 1,000,000 Texaco Inc. 53,689,121 59,875,000 1.4
Utilities--Electric 600,000 Texas Utilities Co. 20,245,955 19,200,000 0.5
Telecommunications 800,000 U.S. West, Inc. 22,413,677 28,500,000 0.7
Pharmaceuticals 440,000 Zeneca Group PLC (ADR)* 12,980,000 18,095,000 0.4
-------------- -------------- ------
1,050,151,412 1,219,068,750 28.8
<PAGE>
Special Situations
Oil--International 710,681 The British Petroleum Co. PLC (ADR)* 33,756,364 56,765,645 1.3
Information Processing 1,000,000 ++Ceridian Corp. 16,072,735 26,875,000 0.6
Information Processing 1,700,000 Data General Corp. 23,653,243 17,000,000 0.4
Information Processing 1,900,000 ++Digital Equipment Corp. 70,377,310 63,175,000 1.5
Restaurants 770,800 ++Foodmaker, Inc. 9,587,860 3,372,250 0.1
Foods/Food Processing 1,100,000 General Mills, Inc. 60,039,860 62,700,000 1.5
Chemicals 500,000 Hercules Inc. 19,235,727 57,687,500 1.4
Pharmaceutical 2,000,000 Merck & Co., Inc. 63,465,898 76,250,000 1.8
-------------- -------------- ------
296,188,997 363,825,395 8.6
Total Stocks 2,893,857,037 3,488,056,170 82.5
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Face Value Percent of
Amount Issue Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Short-Term Securities
Commercial Paper** ABN-AMRO N.A. Finance, Inc.:
$50,000,000 5.84% due 1/06/1995 $ 49,943,222 $ 49,943,222 1.2%
50,000,000 5.80% due 1/20/1995 49,830,833 49,830,833 1.2
50,000,000 ANZ (Delaware) Inc., 6% due 1/03/1995 49,966,667 49,966,667 1.2
50,000,000 Daimler-Benz AG, 5.94% due 1/17/1995 49,851,500 49,851,500 1.2
43,247,000 General Electric Capital Corp.,
5.80% due 1/03/1995 43,219,130 43,219,130 1.1
50,000,000 Morgan (J.P.) & Co., Inc., 5.88% due
1/27/1995 49,771,333 49,771,333 1.2
Matterhorn Capital Corp.:
50,000,000 5.83% due 1/03/1995 49,967,611 49,967,611 1.2
39,077,000 6% due 1/24/1995 38,914,179 38,914,179 0.9
National Australia Funding (Delaware), Inc.:
50,000,000 5.57% due 1/04/1995 49,961,319 49,961,319 1.2
50,000,000 5.68% due 1/23/1995 49,810,667 49,810,667 1.2
50,000,000 Nomura Holding America Inc., 6.03% due
1/27/1995 49,765,500 49,765,500 1.2
Penney (J.C.) & Co.:
50,000,000 6.02% due 1/27/1995 49,765,889 49,765,889 1.1
50,000,000 6% due 2/02/1995 49,716,667 49,716,667 1.2
50,000,000 PepsiCo., Inc., 6% due 1/12/1995 49,891,667 49,891,667 1.1
50,000,000 Preferred Receivables Funding Corp.,
6.05% due 1/17/1995 49,848,750 49,848,750 1.1
Total Short-Term Securities 730,224,934 730,224,934 17.3
Total Investments $3,624,081,971 4,218,281,104 99.8
==============
Other Assets Less Liabilities 7,552,093 0.2
-------------- ------
Net Assets $4,225,833,197 100.0%
============== ======
<PAGE>
<FN>
*American Depositary Receipt (ADR).
**Commercial Paper is traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Fund.
++Non-income producing security.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION
<CAPTION>
Statement of Assets and Liabilities as of December 31, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$3,624,081,971) (Note 1a) $4,218,281,104
Cash 3,577
Receivables:
Capital shares sold $14,123,655
Dividends 10,099,489 24,223,144
-----------
Prepaid registration fees and other assets (Note 1d) 73,525
--------------
Total assets 4,242,581,350
--------------
Liabilities: Payables:
Capital shares redeemed 8,819,831
Securities purchased 4,099,750
Distributor (Note 2) 1,504,220
Investment adviser (Note 2) 1,398,811 15,822,612
----------
Accrued expenses and other liabilities 925,541
--------------
Total liabilities 16,748,153
--------------
Net Assets: Net assets $4,225,833,197
==============
Net Assets Class A Shares of Common Stock, $0.10 par value, 200,000,000 shares
Consist of: authorized $ 10,374,760
Class B Shares of Common Stock, $0.10 par value, 200,000,000 shares
authorized 8,214,573
Class C Shares of Common Stock, $0.10 par value, 200,000,000 shares
authorized 53,349
Class D Shares of Common Stock, $0.10 par value, 200,000,000 shares
authorized 340,535
Paid-in capital in excess of par 3,618,542,417
Accumulated investment loss--net (3,028,610)
Accumulated realized capital losses on investments and foreign currency
transactions--net (2,862,960)
Unrealized appreciation on investments and foreign currency
transactions--net 594,199,133
--------------
Net assets $4,225,833,197
==============
<PAGE>
Net Asset Value: Class A--Based on net assets of $2,318,249,580 and 103,747,596 shares
outstanding $ 22.35
==============
Class B--Based on net assets of $1,819,715,958 and 82,145,732 shares
outstanding $ 22.15
==============
Class C--Based on net assets of $11,773,894 and 533,489 shares outstanding $ 22.07
==============
Class D--Based on net assets of $76,093,765 and 3,405,352 shares
outstanding $ 22.35
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION (continued)
<CAPTION>
Statement of Operations for the Six Months Ended December 31, 1994
<S> <S> <C> <C>
Investment Dividends (net of $748,162 foreign withholding tax) $ 59,065,280
Income Interest and discount earned 19,386,134
(Notes 1b & 1c): --------------
Total income 78,451,414
--------------
Expenses: Distribution fees--Class B (Note 2) $ 9,211,297
Investment advisory fees (Note 2) 8,553,061
Transfer agent fees--Class A (Note 2) 1,408,844
Transfer agent fees--Class B (Note 2) 1,332,141
Amortization of organization expenses (Note 1d) 142,477
Printing and shareholder reports 139,610
Accounting services (Note 2) 90,418
Registration fees (Note 1d) 74,845
Custodian fees 58,709
Professional fees 34,330
Account maintenance fees--Class D (Note 2) 19,745
Directors' fees and expenses 16,314
Transfer agent fees--Class D (Note 2) 12,709
Distribution fees--Class C (Note 2) 12,095
Transfer agent fees--Class C (Note 2) 2,177
Pricing fees 142
Other 41,093
-----------
Total expenses 21,150,007
--------------
Investment income--net 57,301,407
--------------
<PAGE>
Realized & Realized gain on investments--net 15,071,366
Unrealized Gain Change in unrealized appreciation on investments--net 30,425,010
On Investments & --------------
Foreign Currency Net realized and unrealized gain on investments and foreign
Transactions--Net currency transactions 45,496,376
(Note 1c, 1e, 1f --------------
& 3): Net Increase in Net Assets Resulting from Operations $ 102,797,783
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION (continued)
<CAPTION>
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
December 31, June 30,
Increase (Decrease) in Net Assets: 1994 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 57,301,407 $ 88,423,093
Realized gain on investments and foreign currency transactions--net 15,071,366 163,320,957
Change in unrealized appreciation/depreciation on investments and
foreign currency transactions--net 30,425,010 (76,944,519)
--------------- --------------
Net increase in net assets resulting from operations 102,797,783 174,799,531
--------------- --------------
Dividends & Investment income--net:
Distributions to Class A (68,596,425) (62,663,619)
Shareholders Class B (36,272,122) (30,680,760)
(Note 1g): Class C (125,803) --
Class D (1,039,404) --
Realized gain on investments--net:
Class A (77,560,878) (64,558,638)
Class B (61,276,834) (45,745,511)
Class C (37,759) --
Class D (291,335) --
--------------- --------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (245,200,560) (203,648,528)
--------------- --------------
Capital Share Net increase in net assets derived from capital share transactions 350,549,124 639,523,156
Transactions --------------- --------------
(Note 4):
<PAGE>
Net Assets: Total increase in net assets 208,146,347 610,674,159
Beginning of period 4,017,686,850 3,407,012,691
--------------- --------------
End of period* $ 4,225,833,197 $4,017,686,850
=============== ==============
<FN>
*Accumulated investment income (loss)--net $ (3,028,610) $ 45,703,737
=============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION (continued)
<CAPTION>
Financial Highlights
Class A
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
December 31, For the Year Ended June 30,
Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 23.17 $ 23.31 $ 20.57 $ 18.90 $ 19.32
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .37 .62 .71 .70 .87
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .29 .67 3.03 2.02 (.02)
---------- ---------- ---------- ---------- ----------
Total from investment operations .66 1.29 3.74 2.72 .85
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.69) (.70) (.64) (.76) (.97)
Realized gain on investments--net (.79) (.73) (.36) (.29) (.30)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.48) (1.43) (1.00) (1.05) (1.27)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 22.35 $ 23.17 $ 23.31 $ 20.57 $ 18.90
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share 2.85%++ 5.68% 19.03% 15.08% 5.39%
Return:** ========== ========== ========== ========== ==========
<PAGE>
Ratios to Expenses .56%* .53% .54% .58% .59%
Average Net ========== ========== ========== ========== ==========
Assets: Investment income--net 3.18%* 2.76% 3.48% 3.52% 4.76%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $2,318,250 $2,272,983 $2,023,078 $1,670,430 $1,490,657
Data: ========== ========== ========== ========== ==========
Portfolio turnover 5.68% 21.79% 20.85% 21.24% 20.11%
========== ========== ========== ========== ==========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads;
returns would be lower if sales loads were included.
++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION (continued)
<CAPTION>
Financial Highlights (continued)
Class B
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
December 31, For the Year Ended June 30,
Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 22.87 $ 23.04 $ 20.35 $ 18.71 $ 19.12
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .26 .42 .53 .50 .66
Realized and unrealized gain on
investments and foreign currency
transactions--net .27 .62 2.96 2.00 .01
---------- ---------- ---------- ---------- ----------
Total from investment operations .53 1.04 3.49 2.50 .67
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.46) (.48) (.44) (.57) (.78)
Realized gain on investments--net (.79) (.73) (.36) (.29) (.30)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.25) (1.21) (.80) (.86) (1.08)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 22.15 $ 22.87 $ 23.04 $ 20.35 $ 18.71
========== ========== ========== ========== ==========
<PAGE>
Total Investment Based on net asset value per share 2.30%++ 4.61% 17.81% 13.90% 4.33%
Return:** ========== ========== ========== ========== ==========
Ratios to Expenses, excluding distribution fees .58%* .55% .56% .60% .61%
Average Net ========== ========== ========== ========== ==========
Assets: Expenses 1.58%* 1.55% 1.56% 1.60% 1.61%
========== ========== ========== ========== ==========
Investment income--net 2.16%* 1.75% 2.47% 2.50% 3.73%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $1,819,716 $1,744,704 $1,383,935 $1,064,354 $ 874,318
Data: ========== ========== ========== ========== ==========
Portfolio turnover 5.68% 21.79% 20.85% 21.24% 20.11%
========== ========== ========== ========== ==========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads;
returns would be lower if sales loads were included.
++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION (concluded)
<CAPTION>
Financial Highlights (concluded)
The following per share data and ratios have been derived
from information provided in the financial statements. For the Period October 21, 1994++ to
December 31, 1994
Increase (Decrease) in Net Asset Value: Class C Class D
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 22.92 $ 23.19
Operating --------------- --------------
Performance: Investment income--net .14 .10
Realized and unrealized loss on investments and foreign currency
transactions--net (.56) (.49)
--------------- --------------
Total from investment operations (.42) (.39)
--------------- --------------
Less dividends and distributions:
Investment income--net (.33) (.35)
Realized gain on investments--net (.10) (.10)
--------------- --------------
Total dividends and distributions (.43) (.45)
--------------- --------------
Net asset value, end of period $ 22.07 $ 22.35
=============== ==============
<PAGE>
Total Investment Based on net asset value per share (1.81%)+++ (1.64%)+++
Return:** =============== ==============
Ratios to Average Expenses, excluding account maintenance and distribution fees .62%* .61%*
Net Assets: =============== ==============
Expenses 1.62%* .86%*
=============== ==============
Investment income--net 2.06%* 2.36%*
=============== ==============
Supplemental Net assets, end of period (in thousands) $ 11,774 $ 76,094
Data: =============== ==============
Portfolio turnover 5.68% 5.68%
=============== ==============
<FN>
*Annualized.
**Total investment returns exclude the effect of sales loads;
returns would be lower if sales loads were included.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Basic Value Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a diversified,
open-end management investment company. These unaudited interim
financial statements reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the
results for the interim period presented. All such adjustments
are of a normal recurring nature. The Fund offers four classes
of shares under the Merrill Lynch Select Pricing SM System. Shares
of Class A and Class D are sold with a front-end sales charge.
Shares of Class B and Class C may be subject to a contingent
deferred sales charge. All classes of shares have identical voting,
dividend, liquidation and other rights and the same terms and
conditions, except that Class B, Class C and Class D Shares bear
certain expenses related to the account maintenance of such shares,
and Class B and Class C Shares also bear certain expenses related
to the distribution of such shares. Each class has exclusive
voting rights with respect to matters relating to its account
maintenance and distribution expenditures. The following is a
summary of significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Portfolio securities which are
traded on stock exchanges are valued at the last sale price as of
the close of business on the day the securities are being valued
or, lacking any sales, at the mean between closing bid and asked
prices. Securities traded in the over-the-counter market are valued
at the most recent bid prices as obtained from one or more
dealers that make markets in the securities. Securities traded in
the NASDAQ National Market System are valued at the last sale
price on the day the securities are being valued, or lacking any
sales, at the closing bid price. Portfolio securities which are
traded both in the over-the-counter market and on a stock
exchange are valued according to the broadest and most
representative market. Short-term securities with less than sixty
days to maturity are valued at amortized cost, which approximates
market value. Options written by the Fund are valued at the last
sale price or, lacking any sales, the last offering price.
Securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by
or under the direction of the Fund's Board of Directors.
Written and purchased options are non-income producing investments.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required. Under the applicable foreign tax law,
a withholding tax may be withheld on interest, dividends, and
capital gains at various rates.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are
entered into (the trade dates). Dividend income is recorded on
the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as
soon as the Fund is informed of the ex-dividend date. Interest
income (including amortization of discount) is recognized on the
accrual basis. Realized gains and losses on security transactions
are determined on the identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are
charged to expense as the related shares are issued.
(e) Derivative financial instruments--The Fund may engage in
various portfolio strategies to seek to increase its return by
hedging its portfolio against adverse movements in the equity and
currency markets. Losses may arise due to changes in the value of
the foreign currency or if the counterparty does not perform
under the contract.
<PAGE>
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such
contracts are not entered on the Fund's records. However, the
effect on operations is recorded from the date the Fund enters
into such contracts. Premium or discount is amortized over the
life of the contracts.
The Fund may also purchase or sell listed or over-the-counter
foreign currency options, foreign currency futures and related
options on foreign currency futures as a short or long hedge
against possible variations in foreign exchange rates. Such
transactions may be effected with respect to hedges on non-US
dollar denominated securities owned by the Fund but not yet
delivered, or committed or anticipated to be purchased by the
Fund.
(f) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing
when recognized. Assets and liabilities denominated in foreign
currencies are valued at the exchange rate at the end of the
period. Foreign currency transactions are the result of settling
(realized) or valuing (unrealized) assets or liabilities expressed
in foreign currencies into US dollars. Realized and unrealized
gains or losses from investments include the effects of foreign
exchange rates on investments.
NOTES TO FINANCIAL STATEMENTS (concluded)
(g) Dividends and distributions--Dividends and distributions paid
by the Fund are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). The general partner of FAM
is Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. (ML & Co.), which is a
limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
<PAGE>
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and
certain other services necessary to the operations of the Fund.
For such services, the Fund pays a monthly fee based upon the
average daily value of the Fund's daily net assets at the following
annual rates: 0.60% of the Fund's average daily net assets not
exceeding $100 million; 0.50% of average daily net assets
exceeding $100 million but not exceeding $200 million; and 0.40%
of average daily net assets in excess of $200 million. The
Investment Advisory Agreement obligates FAM to reimburse the Fund
to the extent the Fund's expenses (excluding interest, taxes,
distribution fees, brokerage fees and commissions, and
extraordinary items) exceed 2.5% of the Fund's first $30 million
of average daily net assets, 2.0% of the Fund's next $70 million
of average daily net assets, and 1.5% of the average daily net
assets in excess thereof. No fee payment will be made to the
Investment Adviser during any fiscal year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment.
Pursuant to a distribution plan (the "Distribution Plan") adopted
by the Fund in accordance with Rule 12b-1 under the Investment
Company Act of 1940, the Fund pays the Distributor ongoing account
maintenance and distribution fees, which are accrued daily and
paid monthly at annual rates based upon the average daily net
assets of the shares as follows:
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services
to Class B, Class C and Class D shareholders. The ongoing
distribution fee compensates the Distributor and MLPF&S for
providing shareholder and distribution-related services to Class B
and Class C shareholders.
For the six months ended December 31, 1994, MLFD earned
underwriting discounts and MLPF&S earned dealer concessions on
sales of the Fund's Class A and Class D Shares as follows:
<PAGE>
MLFD MLPF&S
Class A $52,749 $969,151
Class D $13,665 $215,072
MLPF&S received contingent deferred sales charges of $759,108
relating to transactions in Class B Shares of beneficial interest,
$253 relating to transactions in Class C Shares of beneficial
interest, and $24,900 in commissions on the execution of portfolio
security transactions for the Fund for the six months ended
December 31, 1994.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary
of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, FDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended December 31, 1994 were $395,055,823 and
$193,805,529, respectively.
Net realized and unrealized gains as of December 31, 1994 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 15,071,366 $594,199,133
------------ ------------
Total $ 15,071,366 $594,199,133
============ ============
As of December 31, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $594,199,133, of which $685,446,253
related to appreciated securities and $91,247,120 related to
depreciated securities. At December 31, 1994, the aggregate cost
of investments for Federal income tax purposes was $3,524,081,971.
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions
was $350,549,124 for the six months ended December 31, 1994 and
$639,523,156 for the year ended June 30, 1994.
Transactions in capital shares for each class were as follows:
<PAGE>
Class A Shares for the Six Months
Ended December 31, 1994 Shares Dollar Amount
Shares sold 7,487,298 $172,752,506
Shares issued to shareholders
in reinvestment of dividends
and distributions 5,782,037 130,723,601
----------- ------------
Total issued 13,269,335 303,476,107
Shares redeemed (7,617,558) (175,924,476)
----------- ------------
Net increase 5,651,777 $127,551,631
=========== ============
Class A Shares for the Year
Ended June 30, 1994 Shares Dollar Amount
Shares sold 22,051,928 $518,481,972
Shares issued to shareholders
in reinvestment of dividends
and distributions 4,979,090 114,208,364
----------- ------------
Total issued 27,031,018 632,690,336
Shares redeemed (15,739,255) (370,180,112)
----------- ------------
Net increase 11,291,763 $262,510,224
=========== ============
Class B Shares for the
Six Months Ended
December 31, 1994 Shares Dollar Amount
Shares sold 12,310,971 $280,714,519
Shares issued to shareholders
in reinvestment of dividends
and distributions 3,848,516 86,346,162
----------- ------------
Total issued 16,159,487 367,060,681
Shares redeemed (10,289,870) (233,647,708)
----------- ------------
Net increase 5,869,617 $133,412,973
=========== ============
Class B Shares for the Year
Ended June 30, 1994 Shares Dollar Amount
Shares sold 25,498,592 $594,651,037
Shares issued to shareholders
in reinvestment of dividends
and distributions 2,969,021 67,552,341
----------- ------------
Total issued 28,467,613 662,203,378
Shares redeemed (12,261,811) (285,190,446)
----------- ------------
Net increase 16,205,802 $377,012,932
=========== ============
<PAGE>
Class C Shares for the Period
October 21, 1994++ to
December 31, 1994 Shares Dollar Amount
Shares sold 572,238 $ 12,859,342
Shares issued to shareholders
in reinvestment of dividends
and distributions 6,576 142,631
----------- ------------
Total issued 578,814 13,001,973
Shares redeemed (45,325) (1,008,314)
----------- ------------
Net increase 533,489 $ 11,993,659
=========== ============
[FN]
++Commencement of Operations.
Class D Shares for the Period
October 21, 1994++ to
December 31, 1994 Shares Dollar Amount
Shares sold 3,424,327 $ 78,046,452
Shares issued to shareholders
in reinvestment of dividends
and distributions 55,368 1,215,335
----------- ------------
Total issued 3,479,695 79,261,787
Shares redeemed (74,343) (1,670,926)
----------- ------------
Net increase 3,405,352 $ 77,590,861
=========== ============
[FN]
++Commencement of Operations.
PORTFOLIO INFORMATION
Ten Largest Percent of
Stock Holdings Net Assets
Sears, Roebuck & Co. 3.4%
Deere & Co. 3.1
Mobil Corp. 3.0
Royal Dutch Petroleum Co. (ADR) 2.9
International Business Machines Corp. 2.5
Philip Morris Cos. Inc. 2.4
Citicorp 2.4
General Motors Corp. 2.2
ITT Corp. 2.1
GTE Corp. 1.9
<PAGE>
Portfolio Changes for the Quarter
Ended December 31, 1994
Addition
CINergy Corp.
Deletion
Reynolds Metals Co.
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Executive Vice President
Donald C. Burke, Vice President
Paul M. Hoffmann, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
