VAN ECK FAMILY OF FUNDS
- --------------------------------------------------------------------------------
GLOBAL HARD ASSETS FUND
Seeks long-term capital appreciation by investing globally, primarily in "Hard
Asset Securities." Income is a secondary consideration.
INTERNATIONAL INVESTORS GOLD FUND
Founded in 1955, this Fund is the oldest gold-oriented mutual fund in the U.S.
It invests in gold-mining shares globally and seeks long-term capital
appreciation, moderate yield and protection against monetary uncertainties.
GOLD/RESOURCES FUND
Seeking a long-term global hedge against inflation and other risks, this Fund
invests in gold-mining and natural resources companies outside South Africa.
GOLD OPPORTUNITY FUND
Seeks capital appreciation by investing globally in equity securities of
companies engaged in the exploration, development, production and distribution
of gold and other precious metals, and through active asset allocation between
gold-related assets and cash instruments.
ASIA DYNASTY FUND
This Fund seeks long-term capital appreciation by investing in the equity
securities of companies that are expected to benefit from the development and
growth of the economies in the Asia Region.
ASIA INFRASTRUCTURE FUND
Seeks long-term capital appreciation by investing in the equity securities of
infrastructure companies that are expected to benefit from the development and
growth of the economies in the Asia Region.
GLOBAL BALANCED FUND
This Fund seeks long-term capital appreciation together with current income by
investing in stocks, bonds and money market instruments worldwide. Fiduciary
International, Inc. serves as sub-investment advisor to this Fund.
GLOBAL INCOME FUND
This Fund seeks high total return through a flexible policy of investing
globally, primarily in debt securities.
U.S. GOVERNMENT MONEY FUND
This Fund seeks the highest safety of principal and daily liquidity by investing
in U.S. Treasury bills and repurchase agreements collateralized by U.S.
Government obligations.
- --------------------------------------------------------------------------------
This report must be accompanied or preceded by a Van Eck Global Funds
prospectus, which includes more complete information, such as charges and
expenses and the risks associated with international investing, including
currency fluctuations or controls, expropriation, nationalization and
confiscatory taxation. For a free Van Eck Gold and Money Funds prospectus,
please call the number listed below. Please read the prospectus before
investing.
[LOGO]
Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016
http://www.vaneck.com
FOR ACCOUNT ASSISTANCE PLEASE CALL (800) 544-4653
B96-0726-004
--------------------------
JUNE 30, 1996
--------------------------
VAN ECK
-------------------
ASIA
-------------------
INFRASTRUCTURE
-------------------
FUND
-------------------
SEMI-ANNUAL
-------------------
REPORT
-------------------
o o o
--------------------------
[LOGO]
<PAGE>
VAN ECK ASIA INFRASTRUCTURE FUND
--------------------------------
1996 SEMI-ANNUAL REPORT
Dear Fellow Shareholder:
International money flows continued to dictate the direction of the Asian stock
markets over the first half of 1996, and many Asian markets registered strong
returns. We are pleased to report that the Asia Infrastructure Fund (the "Fund")
achieved a total return of 15.1% for the first six months of the year, compared
to 7.6% among the 44 Pacific (ex-Japan) funds tracked by Micropal, Inc., a
mutual fund evaluation service.
The Fund has been weighted toward heavy construction and engineering, building
material, and energy production and distribution stocks. Transportation and
telecommunications stocks have also been represented in the Fund. In Hong Kong,
the US$20 billion Airport Core Program is underway with its massive land
reclamation, airport construction and transportation systems. The new airport,
one of the world's largest engineering projects, coupled with other related
infrastructure projects, should maintain Hong Kong as the aviation hub for Asia
well into the next century. In addition, this project will play an important
role in boosting the growth of a number of key sectors of Hong Kong's economy,
particularly the construction and engineering sector. Furthermore, this sector
is poised to benefit from a wide range of infrastructure programs around the
region, particularly in road, rail, water and power development. Given the
relatively attractive valuations and above average growth, we maintain a
favorable outlook for these sectors.
Another sector that will play a crucial role in driving GDP (Gross Domestic
Product) growth is energy production and distribution. The demand for power in
Asia is well known. However, the current production capacity of the region's
power producers is inadequate to support the current rapid industrialization and
rural electrification. Presently, Asia has one of the lowest per capita levels
of power consumption in the world. As economies grow, Asia will need to keep up
with an estimated 10% growth in demand or approximately US$250 billion of new
generation capacity by the year 2000. Going forward, the longer-term potential
includes China, India and Indonesia, three of the most populous countries in the
world, all with very low current consumption per capita.
In terms of country allocation, we increased the Fund's weightings to Hong Kong,
Thailand, Korea and the Philippines and decreased weightings to Malaysia and
Indonesia to take advantage of certain stocks which we believe were overlooked
and undervalued, particularly those involved in the airport project described
above. Although your Fund has benefited from strong performance in Malaysia and
Indonesia in recent months, we currently see better relative value in these
other markets.
The allocation to Hong Kong increased from 29.6% at the end of the first quarter
to 37.5% by the end of June. Of the eight Hong Kong stocks the Fund currently
holds, seven are new additions. This move contributed to the success of the
Fund. In Thailand, the 5% increase from 8.7% to 14.5% was largely allocated to
the energy production and distribution sector. We doubled the Fund's Philippines
allocation to over 9% and added a Korean construction stock.
THE OUTLOOK
With the Dow Jones Industrial Average likely to consolidate and a mediocre
outlook for global fixed income markets, we may see increased volatility in the
Asian markets. However, as both Japan and China reflate their respective
economies and as earlier fears of an overheating regional economy continue to
dissipate, we should see a gradual decoupling of the correlation between Asian
markets and the Dow. In the infrastructure arena, a recent World Bank report
<PAGE>
estimated that the region's high growth economies will need to invest US$1.5
trillion in infrastructure over the next eight years. Thus, we believe the
outlook for the Asia Infrastructure Fund continues to be very favorable.
We appreciate your participation in the Asia Infrastructure Fund and we look
forward to helping you meet your investment objectives in the future.
- ---------------- ---------------
PHOTO PHOTO
- ---------------- ---------------
/s/ John C. van Eck /s/ Peter Soo
----------------------- ----------------------
John C. van Eck Peter Soo
Chairman Portfolio Manager
July 8, 1996
- --------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/96
- --------------------------------------------------------------------------------
AFTER MAXIMUM
AVERAGE ANNUAL SALES BEFORE
TOTAL RETURN CHARGE* SALES CHARGE
- ---------------------------------------------------------------
A shares--Life (since 8/3/94) (5.9)% (3.4)%
- ---------------------------------------------------------------
1 year 15.8% 21.7%
- ---------------------------------------------------------------
B shares--Life (since 4/24/96) (6.1)%** (0.1)%**
- ---------------------------------------------------------------
The performance data represents past performance and is not indicative of future
results. Investment return and principal value of an investment in the Fund will
vary so that shares, when redeemed, may be worth more or less than their
original cost.
The Advisor is currently waiving certain or all expenses on the Fund. Had the
Fund incurred all expenses, investment returns would have been reduced.
*A shares: maximum sales charge = 4.75%.
B shares: maximum contingent deferred sales charge = 6.00%.
**Not annualized.
C shares are no longer publicly offered.
Note: As discussed in a notice sent to shareholders in July, Timothy Chan, who
has twelve years of experience in the financial markets, with ten years of
experience investing in the Asian Markets, will become Portfolio Manager of the
Asia Infrastructure Fund, effective August 1, 1996. Mr. Chan will work with a
team of research analysts in the recently-opened Van Eck offices in Hong Kong.
Please see the prospectus supplement dated May 28, 1996 or call us at
1-800-826-1115 for further information.
<PAGE>
ASIA INFRASTRUCTURE FUND
INVESTMENT PORTFOLIO JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
No. of Shares Securities(a) Value (Note 1)
- ----------------------------------------------------------
HONG KONG: 37.5%
19,000 Citic Pacific Ltd. $ 76,828
114,000 Cosco Pacific Ltd. 81,737
122,000 Guangshen Railway Co. Ltd. 46,100
20,000 New World Infrastructure Ltd. 42,632
200,000 Paul Y-ITC Construction
Holdings Ltd. 47,282
3,000 Road King Infrastructure Ltd. 3,403
260,000 Van Shung Chong Hldgs Ltd. 76,414
300,000 Wai Kee Holdings Ltd. 86,233
----------
460,629
----------
INDONESIA: 7.6%
64,500 P.T. Bukaka Teknik Utama "F" 61,686
11,000 P.T. Semen Gresik "F" 32,033
----------
93,719
----------
MALAYSIA: 13.6%
12,800 FCW Holdings Bhd. 28,222
10,000 Metacorp Bhd. 28,863
30,000 Petronas Gas Bhd.
(Warrants expiring 8/17/2000) 66,146
5,000 Telekom Malaysia Berhad 44,498
----------
167,729
----------
PHILIPPINES: 9.4%
29,000 First Phillippine Holding (Class B) 70,826
750 Philippine Long Distance
Telephone Co. 44,648
----------
115,474
----------
SINGAPORE: 8.6%
10,000 Singapore Airlines Ltd. "F" 105,599
----------
SOUTH KOREA: 8.8%
5,500 Dong-Ah Construction (EDR) 108,625
----------
THAILAND: 14.5%
1,500 Ban Pu Coal Co. Ltd. "F" 43,238
12,000 Electricity Gen. Pub. Co. "F" 41,821
3,500 PTT Exploration & Prod. "F" 51,272
7,200 Tipco Asphalt Public Co. 42,530
----------
178,861
----------
TOTAL STOCKS & OTHER INVESTMENTS: 100%
(Cost: $1,156,697) $1,230,636
==========
SUMMARY OF INVESTMENTS BY INDUSTRY % OF PORTFOLIO
- --------------------------------------------------------------------------------
Airlines 8.6%
Building & Construction 7.0%
Building Materials 3.5%
Cement 2.6%
Coal 3.5%
Engineering & Construction 16.6%
Holding Companies 15.8%
Manufacturing 2.3%
Natural Gas 9.5%
Packaging 6.6%
Railroads 3.7%
Telecommunications 7.2%
Transportation 3.5%
Utilities 3.4%
Wholesale Distributing 6.2%
-------
100.00%
=======
- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.
Glossary:
EDR - European Depositary Receipt
F - Foreign registry
See Notes to Financial Statements.
<PAGE>
ASIA INFRASTRUCTURE FUND FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
ASSETS:
Investments at value
(cost, $1,156,697) (Note 1) $1,230,636
Cash 62,605
Receivables:
Capital shares sold 33,905
Dividends 43
Securities sold 36,947
From Advisor 90,769
Deferred organization cost 20,309
Other assets 74,774
----------
Total assets 1,549,988
----------
LIABILITIES:
Payables:
Organization costs payable 25,871
Accounts payable 17,849
----------
Total liabilities 43,720
----------
NET ASSETS $1,506,268
==========
CLASS A
Net asset value and redemption price
per share ($1,455,173/167,005) $8.71
=====
Maximum offering price per share
(NAV/(1-maximum sales commission)) $9.14
=====
CLASS B
Net asset value and redemption price
per share ($49,800/5,732) (Redemptions may
be subject to a contingent deferred
sales charge within the first six years of
ownership) $8.69
=====
CLASS C
Net asset value and redemption price
per share ($1,295/149) (Redemptions may be
subject to a contingent deferred sales charge
within the first year of ownership) $8.69
=====
Net assets consist of:
Aggregate paid in capital $1,870,621
Unrealized appreciation of investments
and foreign currency 74,019
Accumulated net investment loss (3,800)
Cumulative realized losses (434,572)
----------
$1,506,268
==========
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1996
INCOME:
Dividends (less foreign taxes
withheld of $227) $ 9,253
EXPENSES:
Management (Note 2) $ 4,438
Distribution Class A (Note 4) 2,948
Distribution Class B (Note 4) 15
Administration 1,479
Transfer agency 13,932
Custody 1,289
Registration 4,500
Professional 9,078
Reports to shareholders 5,500
Amortization of deferred
organization 3,272
Other 2,228
---------
48,679
Expenses assumed by
the Advisor (Note 2) (36,502)
---------
Total expenses 12,177
---------
Net investment loss (2,924)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Realized gain from security transactions 5,133
Realized loss from foreign currency
transactions (876)
Change in unrealized appreciation of
investments and foreign denominated
receivables and payable 114,164
---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 115,497
=========
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR
JUNE 30, ENDED
1996 DECEMBER 31,
(UNAUDITED) 1995
----------------------------
INCREASE IN NET ASSETS:
Operations:
Net investment income (loss) $ (2,924) $ 4,982
Realized gain (loss) from
security transactions 5,133 (80,060)
Realized loss from foreign
currency transactions (876) (3,516)
Change in unrealized appreciation
of investments and foreign
denominated receivables and
payables 114,164 176,494
---------- ----------
Increase in net assets
resulting from operations 115,497 97,900
---------- ----------
Capital share transactions:
Net proceeds from sales of shares:
Class A shares 1,263,121 948,369
Class B shares 50,232 --
Class C shares -- 9,523
---------- ----------
1,313,353 957,892
---------- ----------
Reinvestment of dividends:
Class A shares -- 19,074
Class B shares -- --
Class C shares -- 325
---------- ----------
-- 19,399
---------- ----------
Cost of shares reacquired:
Class A shares (661,425) (1,366,575)
Class B shares -- --
Class C shares -- (20,086)
---------- ----------
(661,425) (1,386,661)
---------- ----------
Increase (decrease) in net assets
resulting from capital
share transactions 651,928 (409,370)
---------- ----------
Total increase (decrease)
in net assets 767,425 (311,470)
NET ASSETS:
Beginning of period 738,843 1,050,313
---------- ----------
End of period (including accumulated
distributions in excess of
net investment income of
$3,800 and $0, respectively) $1,506,268 $ 738,843
========== ==========
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
ASIA INFRASTRUCTURE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
CLASS A CLASS B CLASS C
---------------------------------- ----------- -----------------------------------
FOR THE
FOR THE PERIOD FOR THE
SIX MONTHS PERIOD APRIL 24, SIX MONTHS PERIOD
ENDED YEAR AUGUST 3, 1996(a) TO ENDED YEAR OCTOBER 14,
JUNE 30, ENDED 1994(a) TO JUNE 30, JUNE 30, ENDED 1994(a) TO
1996 DECEMBER DECEMBER 1996 1996 DECEMBER DECEMBER
(UNAUDITED) 31, 1995 31, 1994 (UNAUDITED) (UNAUDITED) 31, 1995 31, 1994
----------- -------- ---------- ----------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ... $7.57 $7.04 $9.53 $8.70 $7.55 $7.04 $9.53
----- ----- ------ ----- ----- ----- ------
Income from Investment Operations:
Net Investment Income .................. (0.02) 0.04+ 0.18+ -- (0.02) 0.05+ 0.06
Net Gain (Loss) on Securities (both
realized and unrealized) ............. 1.16 0.49 (2.50) (0.01) 1.16 0.46 (2.36)
----- ---- ----- ------ ----- ----- ------
Total from Investment Operations ....... 1.14 0.53 (2.32) (0.01) 1.14 0.51 (2.30)
---- ----- ------ ----- ----- ------
Dividends from Net Investment Income ... -- -- (0.17) -- -- -- (0.19)
----- ---- ----- ------ ----- ----- ------
Net Asset Value, End of Period ......... $8.71 $7.57 $7.04 $8.69 $8.69 $7.55 $7.04
===== ==== ===== ====== ===== ===== ======
Total Return (b) ....................... 15.06% 7.53% (24.3%) (0.11%) 15.10% 7.24% (24.1%)
----- ---- ----- ------ ----- ----- ------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ........ $1,455 $738 $1,038 $ 50 $1 $1 $12
Ratio of Expenses to
Average Net Assets (c) ............... 2.00% *1.72% 0.28% *2.00% *2.00%* 1.26% 1.02%*
Ratio of Net Investment
Income (loss) to Average Net Assets .. (0.49%)* 0.52% 1.78%* (0.63%)* (0.56%)* 0.64% 4.15%*
Portfolio Turnover Rate ................ 79% 90% 147% 79% 79% 90% 147%
Average Commission Rate Paid ........... $0.0017 $0.0017 $0.0017
</TABLE>
- -----------
(a) Commencement of operations.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period and a redemption on the last day
of the period. A sales charge is not reflected in the calculation of total
return. Total return calculated for a period of less than one year is not
annualized.
(c) The expense ratios for Class A shares and Class C shares would have been
7.94%*, 8.29%, 2.71%, 5.82%*, 281.29%*, 141.85%, and 24.29%, respectively if
the expenses were not assumed by the Advisor.
* Annualized.
+ Based on average shares outstanding.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES:
Van Eck Funds (the "Trust"), organized as a Massachusetts business trust on
April 3, 1985, is registered under the Investment Company Act of 1940. The
following is a summary of significant accounting policies consistently followed
by the Asia Infrastructure Fund series, a non-diversified fund (the "Fund") of
the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A. SECURITY VALUATION -- Securities traded on national or foreign exchanges are
valued at the last sales prices reported at the close of business on the last
day of the period. Over-the-counter securities and listed securities for
which no sale was reported are valued at the mean of the bid and asked
prices. Short-term obligations are valued at cost which with accrued interest
approximates value. Securities for which quotations are not available are
stated at fair value as determined by the Board of Trustees.
B. FEDERAL INCOME TAXES -- It is the Fund's policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
C. CURRENCY TRANSLATION -- Assets and liabilities denominated in foreign
currencies and commitments under forward currency contracts are translated
into U.S. dollars at the mean of the quoted bid and asked prices of such
currencies. Purchases and sales of investments are translated at the exchange
rates prevailing when such investments were acquired or sold. Income and
expenses are translated at the exchange rates prevailing when accrued. The
portion of realized and unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates are not
separately disclosed. Recognized gains or losses attributable to foreign
currency fluctuations on other foreign denominated assets and liabilities are
recorded as net realized gains and losses from foreign currency transactions.
D. OTHER -- Security transactions are accounted for on the date the securities
are purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
federal income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for foreign currency transactions, passive foreign investment
companies, net operating losses, and post-October capital losses.
E. DEFERRED ORGANIZATION COSTS -- Deferred organization costs are being
amortized over a period not exceeding five years.
<PAGE>
ASIA INFRASRUCTURE FUND
-----------------------
NOTE 2 -- Van Eck Associates Corporation (the "Advisor") earned fees of $4,438
for investment management and advisory services. The fee is based on an annual
rate of .75 of 1% of the Fund's average daily net assets. Van Eck Associates
Corporation also earns fees for accounting and administrative services. The fee
is based on an annual rate of .25 of 1% of the Fund's average daily net assets.
AIG Asset Management, Inc., the sub-investment advisor, earns fees for
investment management. The fee is based on an annual rate of .50 of 1% of the
Fund's average daily net assets and is paid by the Advisor from the advisory
fees it receives from the Fund. On July 31, 1996, the Fund terminated it's
sub-investment-advisory agreement with AIG Asset Management, Inc. On August 1,
1996, the Advisor commenced management of the portfolio of investments. Van Eck
Associates Corporation agreed to waive its management fees and administrative
fees and to assume all expenses of the Fund in excess of 2% of average daily net
assets for the period January 1, 1996 to September 30, 1996. Van Eck Securities
Corporation received $2,844 for the six months ended June 30, 1996 from
commissions earned on sales of Class A shares after deducting $12,496 allowed to
other dealers. Certain of the officers and trustees of the Trust are officers,
directors or stockholders of Van Eck Associates Corporation and Van Eck
Securities Corporation. As of June 30, 1996 Van Eck Associates Corporation owned
100% of the outstanding shares of beneficial interest of the Fund's Class C
shares.
NOTE 3 -- Purchases and proceeds from sales of investments, other than
short-term obligations, aggregated $1,253,321 and $846,825, respectively, for
the six months ended June 30, 1996. For federal income tax purposes the cost of
investments owned at June 30, 1996 was $1,156,697. At June 30, 1996, net
unrealized appreciation for federal income tax purposes aggregated $73,939 of
which $109,630 related to appreciated investments and $35,691 related to
depreciated investments. At December 31, 1995, the Fund had $383,113 of capital
loss carryforwards available to offset future capital gains, expiring December
31, 2003.
NOTE 4 -- Pursuant to a Rule 12b-1 Plan of Distribution (the "Plan"), the Fund
is authorized to incur distribution expenses which will principally be payments
to securities dealers who have sold shares and service shareholder accounts and
payments to Van Eck Securities Corporation ("VESC"), the distributor, for
reimbursement of other actual promotion and distribution expenses incurred by
the distributor on behalf of the Fund. T-he amount paid under the Plan in any
one year is limited to .50% of average daily net assets for Class A shares and
1.00% of average daily net assets for Class C shares (the "Annual Limitations").
For Class C shares, the Fund will pay to the selling broker at the time of sale
1% of the amount of the purchase. Such advanced fees will be expensed by the
Fund over the course of the first twelve months from the time of purchase from
12b-1 fees. Should the payments to the brokers made by the Fund exceed, on an
annual basis, 1% of average daily net assets, VESC will reimburse any excess.
Shareholders redeeming within one year of purchase will be subject to a 1%
redemption charge which will be retained by the Fund. After the first year, the
1% 12b-1 fee will be paid to VESC which will retain a portion of the fee for
distribution services and pay the remainder to brokers.
Distribution expenses incurred under the Plan that have not been paid because
they exceed the Annual Limitation may be carried forward to future years and
paid by the Fund within the Annual Limitation. VESC has waived its right to
reimbursement of the carried forward amounts incurred for the period August 3,
1994 (commencement of operations) through April 30, 1997 in the event the Plan
is terminated, unless the Board of Trustees determines that reimbursement of the
carried forward amounts is appropri-ate. The cumulative excess of distribution
expenses incurred over the Annual Limitation at June 30, 1996 was $50,786 for
Class A shares, $465 for Class B shares, and $14,123 for Class C shares.
NOTE 5 -- The Fund invests in foreign securities. Investments in foreign
securities may involve a greater degree of risk than investments in domestic
securities due to political, economic or social instability. In addition, some
foreign companies are not generally subject to the same uniform accounting,
auditing and financial rules as are American companies, and there may be less
government supervision and regulation. Foreign investment may also be subject to
foreign taxes, dividend collection fees and settlement delays.
The Fund may concentrate its investments in companies which are significantly
involved in the design, construction, development, manufacture, sales, leasing,
installation or operation of, or the ownership of property in connection with
infrastructure facilities, systems, products, and technologies in various Asian
countries.
Since the Fund may so concentrate, it may be subject to greater economic, social
and political risks and market fluctuations than other more diversified domestic
and foreign portfolios.
NOTE 6 -- Shares of Beneficial Interest Issued and Redeemed (unlimited number of
$0.001 par value shares authorized):
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
------------- ------------
CLASS A
Shares sold 146,335 144,304
Reinvestment of dividends -- 2,709
--------- -------
146,335 147,013
Shares reacquired (76,795) (196,986)
--------- -------
Net increase (decrease) 69,540 (49,973)
========= =======
FOR THE PERIOD
APRIL 24, 1996+
TO JUNE 30, 1996
(UNAUDITED)
-------------
CLASS B
Shares sold 5,732
Reinvestment of dividends --
---------
5,732
Shares reacquired --
---------
Net increase 5,732
=========
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
------------- ------------
CLASS C
Shares sold -- 1,475
Reinvestment of dividends -- 46
--------- -------
-- 1,521
Shares reacquired -- (3,092)
--------- -------
Net decrease -- (1,571)
========= =======
+ Commencement of operations.
<PAGE>
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