<PAGE> 1
- - --------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
- - --------------------------------------------------------------------------------
May 3, 1995
Dear Fellow Shareholder:
Clemente Global Growth Fund's net asset value (NAV) slid 6.1% in the first
three months of 1995 to $10.06/share. Our exposure to the emerging markets
continued to hurt the NAV as worries over the Mexican crisis unjustifiably
spread to other developing markets, especially those of the Asia/Pacific Rim
region. The Fund's benchmark, the Financial Times Actuaries World Index,
strengthened 4.0% over the same period, mainly on the back of strong US
performance (+8.9%) and currency appreciation (versus the US dollar) across
Europe. So pronounced were these two factors that the FT-World Index (excluding
the US) was actually down 8.8% for the quarter in local terms.
THE PAST QUARTER
The concerns of late 1994 carried over into the first quarter of this year.
The Mexican crisis set the tone early in the quarter. Subsequent comparisons
were inescapable especially since one could find among some Asian nations of the
Pacific Rim current account deficits, large foreign debt levels, and, despite
generally high levels of savings, a significant dependence on foreign funds.
Such considerations, along with worries about the falling dollar and the
resulting implications for interest rates in the US, produced much consternation
in Asian markets for most of the quarter. Adding to investor uneasiness was yen
strength and its likely impact on Japanese and regional economic strength.
The story in Europe has been a little better for dollar-based investors but
largely because of currency gains. Positive local returns were turned in by only
two markets in Europe, and both were rather unremarkable: UK equities gained
2.5% and Irish stocks a scant 0.5%. The strong D-Mark and the need to defend
currencies with higher interest rates produced volatile, and generally bearish
markets. The surprise easing by the Bundesbank toward the end of the quarter
gave some heart to the markets, but worrisome questions about the future of
interest rates and the pace of economic recovery remained to plague equity
investors. Questions of debt or deficits added to uncertainty, from time to
time, in Belgium, Italy, Spain, and Sweden. A presidential campaign held back
France, while the UK was constrained by the slow disintegration of the Tory
Party.
Latin America has not been able to shake the deflationary forces unleashed
by the Mexican peso collapse. Argentina's currency link to the US dollar is a
matter of great concern, despite the government's restatement of its commitment
to a mixed currency policy; quite simply, investors have doubts about the
ability of the nation to put up with the economic slowdown that would be needed
to correct the balance of payment deficits that threaten the currency. Brazil
has not been able to be untracked, as investors wait for the constitutional
amendments that are needed for the next stage of economic reform. Mexico's
market fell 23% despite gains of more than 18% in March, and the peso's weakness
produced an even more alarming 43.4% drop in US dollars. Canada staged a modest
rally, up 2.4%, as the economy remained strong, inflation was subdued, the
fiscal imbalances improved, and the separatist forces were temporarily quelled.
THE PORTFOLIO
Reducing our weighting in the emerging markets, we sold our sole positions
in Argentina, China, Hong Kong, India, Indonesia, Malaysia, and Turkey, while
adding only modestly to the Philippines. These assets were re-allocated to the
developed markets where our weighting rose from 67%, at the end of last year, to
75% in the first quarter. We exited Australia and Norway (primarily bottom up
decisions), while beefing up our Canadian, Finnish, Irish, South African and US
exposure. Our Japanese weighting remained somewhat constant (29.2% in the fourth
quarter of 1994 vs. 28.1% in the first quarter of 1995) but was marked by a
reduction in small capitalization stocks and an increase in bigger, medium-
1
<PAGE> 2
capitalization stocks. At the end of the first quarter of 1995, the Fund was
75.3% invested in developed markets and 23.9% invested in emerging markets.
LOOKING AHEAD
Sharp contradictions are not expected in 1995, but talk shifts increasingly
to a slowdown in economic activity. The US economy, whose strong economic gains
benefited the rest of the world, is beginning to respond to the progressive
tightening of monetary policy. A deceleration of growth is underway, with real
GDP gains likely falling to 3% in the first quarter, and then under 2.5% for the
remainder of the year. No further increases in rates are likely before summer,
and they are not likely to come at all unless growth appears to be rebounding,
or if dollar weakness persists and is finally seen as potentially inflationary.
Europe's gains are threatened by the fall of the dollar, in part because
their competitiveness is eroded relative to the US and much of Asia, but more
importantly, as a result of the currency tensions that are generated by the
dollar's decline against the D-Mark. The pressure to tighten will pick-up in the
second half of the year, as the German economy grows above trend, and wage
settlements are seen as moderately inflationary. Nations already struggling with
loss of credibility because of debt/deficit burdens or higher inflation -- e.g.
Italy, Spain, Sweden -- have weakening currencies as another source of upward
pressure on interest rates.
Mexico is almost certainly headed for a serious recession, and Argentina
will greatly curtail spending in order to defend the peso-US dollar link. Brazil
must navigate domestic shoals, in the form of constitutional amendments, in
order to push forward the reforms that are needed for sustained economic growth.
Overall, the original expectation of growth exceeding 3.5% for the region in
1995 may have to give way to much diminished prospects of 1.5 -- 2.0%.
Japan has little room to maneuver with interest rates, given an official
discount rate of 1%, but the Bank of Japan can, and probably will, increase the
level of liquidity in order to boost asset prices and avert a double-dip
recession. In much of Asia, monetary policy will be cautious, with a bias toward
moderate tightening, as fast moving economies threaten to overheat. These
markets, home of the most dynamic economies in the world, will experience some
deceleration in growth in 1995. Average growth in the region will likely fall by
about 1 percentage point, from above 8% to above 7%.
Prospects for global equity markets look promising. The consolidation of
Asian markets in 1994 has given corporate earnings a chance to catch up with the
overvalued levels of late 1993/early 1994. Valuations of these markets are
generally back to their early 1993 levels. Recovery in Europe should be led by a
rebound in corporate profits. Slower growth in the US will moderate earnings but
should be mitigated somewhat by increased international competitiveness.
All in all, there is no reason for great gloom in 1995. OECD growth will
remain above trend (2.5-3.0%), and the US economy, although set to slip below
long-term potential later this year, will not face the risk of recession until
1996. While growth in the Asian Pacific Rim should slow, it remains one of the
most dynamic regions for investments. Opportunities for worldwide growth
investing still abound and it has been our ongoing effort to exploit these
opportunities for the fullest benefit of our shareholders. We thank you for your
continued support.
Sincerely yours,
<TABLE>
<S> <C>
Lilia C. Clemente Leopoldo M. Clemente, Jr.
Chairman President
</TABLE>
2
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CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
MARCH 31, 1995
<TABLE>
<CAPTION>
- - ----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ----------------------------------------------------
<S> <C> <C>
NEW ZEALAND--2.3%
Common Stock--2.3%
50,000 Fletcher Challenge Ltd.
ADR................... $ 1,193,750
(Energy & forestry
products)
12,500 Fletcher Challenge
Forests ADR........... 170,313
(Forest products &
paper)
Total Common
Stock/Holdings-- ------------
New Zealand........... 1,364,063
------------
TOTAL HOLDINGS--
NEW ZEALAND........... 1,364,063
------------
FAR EAST--44.4%
JAPAN--28.1%
Common Stock--28.1%
13,000 Aiphone SP Co. ......... 235,790
(Telecommunications
equipment)
39,000 Ariake Japan Co.,
Ltd. ................. 1,486,830
(Processed & frozen food
maker)
54,000 Daiki Co., Ltd. ........ 1,010,628
(Home centers)
62,000 Fukuda Denshi Co. ...... 1,432,532
(Medical electronics
equipment maker)
62,000 Hitachi Metals, Ltd. ... 773,567
(High quality specialty
steel producer)
26,250 Keiyu Co. .............. 879,448
(Used car dealer)
80,000 Kunimine Industries
Co. .................. 1,201,479
(Building materials)
10,000 Maruko Co., Ltd. ....... 692,006
(Textiles--lingerie)
61,000 Nichiha Corp. .......... 1,099,353
(Housing materials &
supplies)
</TABLE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ----------------------------------------------------
<S> <C> <C>
FAR EAST (CONTINUED)
JAPAN (CONTINUED)
Common Stock (continued)
14,400 Nippon Kanzai Co. ...... $ 534,011
(Commercial services--
building maintenance)
26,000 Rohm Co., Ltd. ......... 1,159,427
(Custom linear
microprocessor maker)
68,000 Takara Printing Co.,
Ltd. ................. 1,256,932
(Compiling & printing of
corporate disclosures)
103,000 Takuma Co. ............. 1,618,299
(Boiler maker)
24,000 TDK Corp. .............. 1,122,921
(Magnetic tape maker)
36,000 Tokyo Electron, Ltd. ... 1,097,967
(Specialized electronics
trading company)
56,000 Yorozu Corp. ........... 1,048,059
(Automobile parts)
Total Common
Stock/Holdings-- ------------
Japan................. 16,649,249
------------
KOREA--4.8%
Common Stock--4.8%
36,236 L.G. Electronics,
Co. .................. 1,492,429
(Consumer electronics &
electric appliance
maker)
42,000 *Korea Zinc Co. ........ 1,104,261
(Zinc ingots,
electrolytic zinc &
electrolytic gold
producer)
18,819 *Kumho Construction &
Engineering Co.,
Ltd. ................. 242,275
(Transportation,
construction)
Total Common
Stock/Holdings-- ------------
Korea................. 2,838,965
------------
</TABLE>
3
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CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995
<TABLE>
<CAPTION>
- - -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - -----------------------------------------------------
<S> <C> <C>
FAR EAST (CONTINUED)
PHILIPPINES--8.9%
Common Stock--8.9%
2,035,000 *Bankard, Inc. ......... $ 385,000
(Financial services)
1,704,500 *+Grand Plaza Hotel
Corp.(a) ............. 822,635
(Property developer)
78,000 Manila Electric
Co., Cl B............. 798,070
(Utilities--electric)
71,281 Metropolitan Bank &
Trust Co. ............ 1,321,042
(Financial services--
commercial bank)
49,066 *Philex Mining Corp., CI
B..................... 5,210
(Explores, mines, and
develops ore deposits)
24,000,000 *Southeast Asia Cement
Holdings Co. ......... 1,945,946
(Construction)
Total Common
Stock/Holdings-- -----------
Philippines........... 5,277,903
-----------
SINGAPORE--2.6%
Common Stock--2.6%
390,000 *Osprey Maritime,
Ltd.(a)............... 780,000
(Transportation--marine)
430,000 United Overseas Land,
Ltd. ................. 761,601
(Conglomerate--real
estate)
Total Common
Stock/Holdings-- -----------
Singapore............. 1,541,601
-----------
TOTAL HOLDINGS--
FAR EAST.............. 26,307,718
-----------
</TABLE>
<TABLE>
<CAPTION>
- - ---------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ---------------------------------------------------
<S> <C> <C>
AFRICA--4.5%
SOUTH AFRICA--4.5%
Common Stock--4.5%
41,500 Murray & Roberts
Holdings, Ltd. ....... $ 1,193,326
(Industrial holding
company)
52,921 South Africa Breweries,
Ltd. ................. 1,473,835
(Beverage, retail, and
hotel holding company)
Total Common
Stock/Holdings-- South -----------
Africa................ 2,667,161
-----------
TOTAL HOLDINGS--
SOUTH AFRICA.......... 2,667,161
-----------
EUROPE--25.4%
AUSTRIA--1.3%
Common Stock--1.3%
8,150 Austria Mikro Systeme
International A.G. ... 760,387
(Electronics--
semiconductors)
Total Common
Stock/Holdings-- -----------
Austria............... 760,387
-----------
FINLAND--5.4%
Common Stock--5.4%
50,400 *Aamulehti Yhtymae
Oy--II ............... 804,907
(Publishing)
8,500 Kone Corp, Cl B......... 1,015,160
(Elevator manufacturer)
24,900 Metra Oy, Cl B.......... 899,063
(Engineering &
construction)
</TABLE>
4
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CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995
<TABLE>
<CAPTION>
- - ----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ----------------------------------------------------
<S> <C> <C>
EUROPE (CONTINUED)
FINLAND (CONTINUED)
Common Stock (continued)
226,000 *Tampella AB............ $ 486,471
(Forest products &
paper)
Total Common
Stock/Holdings-- ------------
Finland............... 3,205,601
------------
GERMANY--1.8%
Common Stock--1.8%
1,500 Wella A.G. ............. 1,079,843
(Personal care products
manufacturer &
marketer)
Total Common
Stock/Holdings-- ------------
Germany............... 1,079,843
------------
IRELAND--8.5%
Common Stock--8.5%
1,128,691 Anglo Irish Bank Corp.
plc .................. 897,338
(Commercial bank)
212,651 Bank of Ireland Group
plc................... 1,083,381
(Commercial bank)
1,130,000 Fyffes plc.............. 1,870,094
(Fresh fruit and produce
distributor)
297,498 Independent Newspapers
plc................... 1,206,726
(Newspaper publishing,
cable TV &
advertising)
Total Common
Stock/Holdings-- ------------
Ireland............... 5,057,539
------------
</TABLE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ----------------------------------------------------
<S> <C> <C>
EUROPE (CONTINUED)
NETHERLANDS--1.8%
Common Stock--1.8%
10,000 Verenidge Nederlendse
Uitgevsbedri Verigd
Bezit ................ $ 1,076,533
(Publishing & printing)
Total Common
Stock/Holdings-- ------------
Netherlands........... 1,076,533
------------
SWEDEN--3.6%
Common Stock--3.6%
120,000 Munksjo A/B B Free...... 879,049
(Forest & paper
products)
80,000 Sandvik A/B B Free...... 1,269,738
(Cemented carbide,
stainless steel, saws
& tools manufacturer)
Total Common
Stock/Holdings-- ------------
Sweden................ 2,148,787
------------
UNITED KINGDOM--3.0%
Common Stock--3.0%
705,737 FKI Babcock plc ........ 1,744,600
(Engineering, automotive
& material handling)
Total Common
Stock/Holdings-- ------------
United Kingdom........ 1,744,600
------------
TOTAL HOLDINGS--
EUROPE................ 15,073,290
------------
</TABLE>
5
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- - ----------------------------------------------------------
CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995
<TABLE>
<CAPTION>
- - ---------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ---------------------------------------------------
<S> <C> <C>
LATIN AMERICA--10.2%
BRAZIL--1.2%
Common Stock--1.2%
58,000 *++Usiminas Sideburg
Minas ADS ............ $ 731,960
(Steel producer)
Total Common
Stock/Holdings-- -----------
Brazil................ 731,960
-----------
CHILE--2.0%
Common Stock--2.0%
250,000 Antofagasta Holdings
plc .................. 1,215,750
(Copper & gold mining,
railroad holding
company)
Total Common
Stock/Holdings-- -----------
Chile................. 1,215,750
-----------
COLOMBIA--2.4%
Common Stock--2.4%
92,175 ++Corporacion Financiera
del Valle S.A. ADS ... 1,428,707
(Commercial banking)
Total Common
Stock/Holdings-- -----------
Colombia.............. 1,428,707
-----------
MEXICO--3.6%
Common Stock--3.6%
700,000 Grupo Industrial Maseca,
S.A. de C.V., Cl B.... 431,245
(Tortilla dough
manufacturer)
</TABLE>
<TABLE>
<CAPTION>
- - ---------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ---------------------------------------------------
<S> <C> <C>
LATIN AMERICA (CONTINUED)
MEXICO (CONTINUED)
Common Stock (continued)
64,000 Panamerican Beverages,
Inc. ADR.............. $ 1,672,000
(Bottler of brand name
soft drinks in Mexico,
Brazil & Colombia)
Total Common
Stock/Holdings-- -----------
Mexico................ 2,103,245
-----------
PANAMA--1.0%
Common Stock--1.0%
22,000 Banco Latinoamericano de
Exportaciones Cl E,
S.A. ADR.............. 561,000
(Multinational bank)
Total Common
Stock/Holdings-- -----------
Panama................ 561,000
-----------
TOTAL HOLDINGS--
LATIN AMERICA......... 6,040,662
-----------
NORTH AMERICA--22.0%
CANADA--3.7%
Common Stock--3.7%
27,800 *Newbridge Networks
Corp. ................ 910,450
(Telecommunications
equipment)
120,000 *++Royal Plastics Group,
Ltd. ................. 1,254,199
(Building materials)
Total Common
Stock/Holdings-- -----------
Canada................ 2,164,649
-----------
</TABLE>
6
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CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995
<TABLE>
<CAPTION>
- - ----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- - ----------------------------------------------------
<S> <C> <C>
NORTH AMERICA (CONTINUED)
UNITED STATES--18.3%
Common Stock--8.7%
66,000 *Dialogic Corp. ........ $ 1,872,750
(Computer software &
services)
60,000 Freeport-McMoran Copper
& Gold, Inc. Cl A..... 1,312,500
(Gold & copper mining)
122,000 *Geotek Industries,
Inc. ................. 1,006,500
(Supplier of specialized
mobile radio services)
24,200 Sybase, Inc. ........... 968,000
(Computer software
services)
Total Common Stock-- ------------
United States......... 5,159,750
------------
Short-Term Instruments--9.6%
$5,713,000 Chevron Oil Finance
Corp. Commercial
Paper 6.00%,
dated 3/31/95,
due 4/03/95........... 5,713,000
Total Short-Term
Instruments-- ------------
United States......... 5,713,000
------------
Total Holdings-- ------------
United States......... 10,872,750
------------
TOTAL HOLDINGS--
NORTH AMERICA......... 13,037,399
------------
</TABLE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------
VALUE
- - ----------------------------------------------------
<S> <C> <C>
Total Investments
(Cost $57,387,384)**....... 108.8% $ 64,490,293
Other Assets Less
Liabilities................ (8.8%) (5,216,123)
------------
Total Net Assets............. 100.0% $ 59,274,170
============
Net Asset Value Per Share............ $10.06
======
</TABLE>
(ADR) American Depositary Receipts
(ADS) American Depositary Shares
* Non-Income Producing Security
+ Common stock has warrant offering of 1
warrant for every 5 shares owned, expiring on
12/9/97. Warrants currently valued at zero
++ Security restricted as to resale to
institutional investors
(a) Fair value as determined by the Board of
Directors.
<TABLE>
<CAPTION>
**SUMMARY OF TOTAL
INVESTMENTS: COST VALUE
------------ ------------
<S> <C> <C>
Common Stock............... $ 51,674,384 $ 58,777,293
Short-Term Instruments..... 5,713,000 5,713,000
------------ ------------
Total Investments.......... $ 57,387,384 $ 64,490,293
============ ============
</TABLE>
7
<PAGE> 8
DIRECTORS AND OFFICERS
LILIA C. CLEMENTE, Chairman and
Director
LEOPOLDO M. CLEMENTE, JR.,
President and Director
ADRIAN C. CASSIDY, Director
THOMAS H. LENAGH, Director
+SAM NAKAGAMA, Director
+ROBERT B. OXNAM, Director
+G. PETER SCHIEFERDECKER, Director
BARON J.G.A. SIRTEMA VAN GROVESTINS,
Director
WILLIAM H. BOHNETT, Secretary
THOMAS J. PRAPAS, Treasurer
MARIA DISTEFANO,
Assistant Secretary
--------------
+Members of Audit Committee
-----------------------------------------
EXECUTIVE OFFICES--
152 W. 57th Street, New York, NY 10019
(For latest net asset value and market
data, please call 212-765-0700; regarding
shareholder inquiries, please call
1-800-432-8224)
INVESTMENT ADVISER--
Clemente Capital, Inc.
ADMINISTRATOR--
Furman Selz Incorporated
TRANSFER AGENT AND REGISTRAR--
The Bank of New York
CUSTODIAN--
Brown Brothers Harriman & Co.
LEGAL COUNSEL--
Fulbright & Jaworski L.L.P.
<PAGE> 9
(This page has been left blank intentionally.)
<PAGE> 10
- - ----------------------------------------------------
SUMMARY OF GENERAL
INFORMATION
- - ----------------------------------------------------
THE FUND
Clemente Global Growth Fund is a
closed-end investment company whose
shares trade on the New York Stock
Exchange. The Fund seeks long-term capital
appreciation primarily through investment in
small and medium sized equities located
throughout the world. The Fund is managed
by Clemente Capital, Inc.
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares
are published in the New York Stock
Exchange Composite Transactions section
of most newspapers under the designation
"ClmGlb". The Fund's New York Stock
Exchange trading symbol is CLM. Net asset
value (NAV) and market price information
about Clemente Global Growth Fund shares
are published each Monday in The Wall Street
Journal and The New York Times and in
other newspapers.
DIVIDEND REINVESTMENT PLAN
Through its voluntary Dividend
Reinvestment Plan, shareholders of
Clemente Global Growth Fund may elect to
receive dividends and capital gains
distributions in the form of additional shares
of the Fund. Tel. #1-800-432-8224.
- - ----------------------------------------------------
This report is transmitted to the shareholders
of Clemente Global Growth Fund, Inc. for their
information. This is not a prospectus, circular
or representation intended for use in the purchase
of shares of the Fund or any securities mentioned
in this report.
Notice is hereby given in accordance with Section
23(c) of the Investment Company Act of 1940 that
the Fund may purchase at market prices from time to
time shares of its common stock in the open market.
- - ----------------------------------------------------
(LOGO)
CLEMENTE GLOBAL
GROWTH FUND, INC.
QUARTERLY REPORT
MARCH 31, 1995
