<PAGE> 1
- --------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
May 6, 1996
Dear Fellow Shareholder:
The first quarter of 1996 was one of those rare periods when the US stock
and bond markets acted in opposite directions. The bond market experienced one
of its worst three month periods while stocks continued on a roll, registering a
gain of 9.19% in the DJIA and 4.80% in the S&P 500. Stock price gains were
achieved despite higher bond yields, Republican disarray, the budget impasse and
turbulence in several of the world's hot spots. As predictable as muddled and
contradictory economic statistics might have been, they have still been met with
outsized market reactions and a record breaking $75 billion has been flowing
into equity mutual funds.
LOOKING BACK--FIRST QUARTER 1996
Despite the recovery of equities in emerging markets (up 4.3%) and the
continued fine overall performance of European equities, the US easily
out-stepped the average performance turned in by most of the major regions in
the world.
The rallies in Latin American and Pacific Rim emerging equity markets which
began in November 1995 were derailed early in February. These gyrations were
particularly damaging to Clemente Global Growth Fund's performance during the
first quarter. The Fund's net asset value rose 0.85% to $10.74. The Fund's share
price ended the quarter slightly down to $8.25, while the discount increased to
23.18%.
THE PORTFOLIO
The Fund believes that the emerging markets will be the place to be in the
years to come, despite their recent difficulties. With valuations down from
their historic highs investors are again examining the fundamentals of emerging
markets. We know that good quality growth has been achieved during the past five
years with the growth rate of emerging markets at 4.2% compared to 1.9% for the
G-7 countries. Over the next five years, we expect real GDP growth of 5.7% in
emerging markets and 2.2% in the G-7. At the top of the list in 1996 will be
China, Thailand, Malaysia, Singapore, and South Korea. Longer term we can expect
Asia to continue to lead the way. This is well reflected in the Fund's increase
in exposure to emerging markets in the first quarter. Since the end of 1995, the
Fund's weighting in emerging markets rose to 33.3% from 23.1% and we expect this
trend to continue in the near-term. The developed market exposure was reduced
from 77% to 60% with Japan accounting for 24.7% and the US for 12.9%.
The Fund's themes reflect continuing interest in capital goods, selected
technology, cyclical stocks, a play on renewed interest in real resources of
gold mines and energy and a reduction in interest sensitive holdings in the
banks. Our themes for 1996 are reflected in some of the new names in the Fund:
YPF is the largest company in Argentina, accounting for 50% of the Argentine oil
and gas market; and Companhia Vale do Rio Doce, located in Brazil, is one of the
world's largest and most efficient natural resource companies. Telefonica del
Peru and Telebras of Brazil represent our favorites in
1
<PAGE> 2
telecommunications. We added Siam Cement of Thailand and Davao Union Cement of
the Philippines, given the strong worldwide demand for cement.
OUTLOOK
Against a backdrop of expanding global demand and rising inflationary
expectations, we believe that the policy of monetary easing in the industrial
world appears to be shifting to a tightening stance. Thus a global bond sell-off
may continue into the second quarter of 1996. But losses will be quite limited
compared with the sharp bond price declines of the first half of 1994. A partial
reversal of the uptick in yields is likely later in the year. Funds will flow
out of the US market as investors explore better valuations and higher expected
returns abroad. Emerging markets will continue to reclaim some of their lost
luster, aided by good growth prospects, stable politics, and attractive
valuations. The good investment prospects of foreign markets will once again
attract global investors. The Fund is appropriately structured to meet the
opportunities in international markets for attractive returns and controlled
risks.
Thank you for your continued support and confidence.
Sincerely yours,
<TABLE>
<S> <C>
/s/ LILIA C. CLEMENTE LEOPOLDO M. CLEMENTE, JR.
- --------------------- ----------------------------
Lilia C. Clemente Leopoldo M. Clemente, Jr.
Chairman President
</TABLE>
2
<PAGE> 3
- ----------------------------------------------------------
CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
MARCH 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
AUSTRALIA--1.6%
Common Stock--1.6%
155,000 WMC, Ltd. .............. $ 1,028,255
(Producer & processor of
mineral and petroleum
products)
Total Common
Stock/Holdings-- -------------
Australia............. 1,028,255
-------------
TOTAL HOLDINGS--
AUSTRALIA (cost
$1,011,578)........... 1,028,255
-------------
FAR EAST--46.3%
HONG KONG--3.5%
Common Stock--1.7%
125,000 Swire Pacific, Ltd.
A .................... 1,099,171
(Conglomerate--
aviation, property,
marine services, &
insurance)
Total Common Stock-- -------------
Hong Kong............. 1,099,171
-------------
Warrants--1.8%
2,358,000 *HSBC Holding
Call Warrant due
7/30/1997 (strike
level 105HKD)......... 731,815
1,390,000 * Sung Hung Kai
Call Warrant due
8/15/1996 (strike
level 47HKD).......... 404,430
Total Warrants-- -------------
Hong Kong............. 1,136,245
-------------
Total Holdings--
Hong Kong............. 2,235,416
-------------
INDONESIA--3.4%
Common Stock--3.4%
32,000 Persahaan Perseroan Indo
Satellite Corp.
ADR .................. 1,092,000
(Telecommunications)
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
FAR EAST (CONTINUED)
INDONESIA (CONTINUED)
85,000 PT Gudang Garam--
Foreign Registered.... $ 1,063,750
(Tobacco manufacturer)
Total Common
Stock/Holdings-- -------------
Indonesia............. 2,155,750
-------------
JAPAN--24.7%
Common Stock--21.0%
134 DDI Corp.. ............. 1,017,990
(Telecommunications)
85,000 Hitachi Metals, Ltd. ... 966,629
(High quality specialty
steel producer)
18,000 Ito-Yokado Co., Ltd. ... 1,065,436
(Retail--supermarkets)
60,000 Mori Seiki Co., Ltd. ... 1,263,982
(Hand & machine tool
maker)
50,000 Omron Corp. ............ 1,095,265
(Electronics)
26,000 Rohm Co., Ltd. ......... 1,471,104
(Electronics--
semiconductors)
43,000 Sankyo Co., Ltd. ....... 982,010
(Pharmaceuticals)
49,000 Sanwa Bank, Ltd. ....... 982,010
(Financial services--
commercial banks)
52,500 Shin-Etsu
Chemical Co........... 1,008,110
(Chemicals--
semiconductors & PVC)
87,000 Shiseido Co., Ltd. ..... 1,021,812
(Cosmetics--personal
care)
24,000 TDK Corp. .............. 1,232,662
(Electronics)
</TABLE>
3
<PAGE> 4
- ----------------------------------------------------------
CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
FAR EAST (CONTINUED)
JAPAN (CONTINUED)
Common Stock (continued)
36,000 Tokyo Electron, Ltd. ... $ 1,224,832
(Computers--
electronics trading
company)
Total Common Stock-- -------------
Japan................. 13,331,842
-------------
Warrants--3.7%
245,000 *Morgan Stanley Group
Nikkei 225 Index
Call Warrant due
8/15/1997 (strike
level Y18,158.73)
(b)................... 2,312,188
-------------
Total Warrants--Japan... 2,312,188
-------------
Total Holdings--Japan... 15,644,030
-------------
KOREA--3.6%
Common Stock--3.6%
20,000 Dae Duck Industrial
Co.................... 890,213
(Electrical equipment)
38,349 L.G. Electronics Co. ... 1,044,344
(Consumer electronics
& electric appliance
maker)
4,570 Pohang Iron & Steel Co.,
Ltd. ................. 330,706
(Iron & steel
manufacturer)
Total Common
Stock/Holdings-- -------------
Korea................. 2,265,263
-------------
MALAYSIA--1.1%
Common Stock--1.0%
400,000 +Renong Berhad.......... 650,381
(Conglomerate--
engineering,
construction &
financial services)
Total Common Stock-- -------------
Malaysia.............. 650,381
-------------
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
FAR EAST (CONTINUED)
MALAYSIA (CONTINUED)
Rights--0.1%
400,000 Renong Berhad........... $ 31,572
(Conglomerate--
engineering,
construction &
financial services)
Total Rights-- -------------
Malaysia.............. 31,572
-------------
Total Holdings--
Malaysia.............. 681,953
-------------
PHILIPPINES--5.6%
Common Stock--5.6%
1,500,000 *C & P Homes Inc. ...... 1,130,725
(Homebuilders)
500,000 Davao Union Cement
Corp., B.............. 120,229
(Building materials)
1,704,500 *++Grand Plaza Hotel
Corp. (a)............. 975,859
(Property developer)
10,100,000 *Southeast Asia Cement
Holdings Co. ......... 1,291,412
(Construction)
Total Common
Stock/Holdings-- -------------
Philippines........... 3,518,225
-------------
SINGAPORE--1.6%
Common Stock--1.6%
109,000 Keppel Corp., Ltd. ..... 991,261
(Transportation--
marine)
Total Common
Stock/Holdings-- -------------
Singapore............. 991,261
-------------
THAILAND--2.8%
Common Stock--2.8%
16,000 Siam Cement Co.--
Foreign Registered.... 824,187
(Building materials)
</TABLE>
4
<PAGE> 5
- ----------------------------------------------------------
CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
FAR EAST (CONTINUED)
THAILAND (CONTINUED)
Common Stock (continued)
63,000 Siam Commercial Bank
Public Co., Ltd.--
Foreign Registered ... $ 968,578
(Financial services--
commercial banking)
Total Common
Stock/Holdings-- -------------
Thailand.............. 1,792,765
-------------
TOTAL HOLDINGS--
FAR EAST (cost
$26,756,577).......... 29,284,663
-------------
AFRICA--3.3%
SOUTH AFRICA--3.3%
Common Stock--3.3%
300,000 Gencor, Ltd. ........... 1,183,060
(Conglomerate--mining,
commercial services)
28,949 South Africa
Breweries, Ltd. ...... 916,200
(Beverage, retail, &
hotel holding company)
Total Common
Stock/Holdings-- -------------
South Africa.......... 2,099,260
-------------
TOTAL HOLDINGS--AFRICA
(cost $1,628,510)..... 2,099,260
-------------
EUROPE--17.4%
FRANCE--1.5%
Common Stock--1.5%
9,381 Compagnie Generale des
Eaux.................. 959,545
(Utilities--water)
Total Common
Stock/Holdings-- -------------
France................ 959,545
-------------
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
EUROPE (CONTINUED)
GERMANY--1.1%
Common Stock--1.1%
1,500 Hoechst A.G. ........... $ 708,288
(Chemical manufacturer &
marketer)
Total Common
Stock/Holdings-- -------------
Germany............... 708,288
-------------
IRELAND--4.1%
Common Stock--4.1%
212,650 Bank of Ireland Group... 1,399,804
(Commercial bank)
152,498 Independent Newspapers
plc................... 1,217,580
(Newspaper publishing,
cable TV &
advertising)
Total Common
Stock/Holdings-- -------------
Ireland............... 2,617,384
-------------
ITALY--1.8%
Common Stock--1.8%
620,000 *Telecom Italia Mobile
Sp. A................. 1,125,545
(Telecommunications)
Total Common
Stock/Holdings-- -------------
Italy................. 1,125,545
-------------
NETHERLANDS--3.0%
Common Stock--3.0%
17,600 Polygram NV............. 1,064,409
(Entertainment--
recorded music)
50,000 VNU-Ver Ned Uitgev Ver
Bezit................. 831,569
(Publishing & printing)
Total Common
Stock/Holdings-- -------------
Netherlands........... 1,895,978
-------------
</TABLE>
5
<PAGE> 6
- ----------------------------------------------------------
CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
EUROPE (CONTINUED)
SPAIN--1.7%
Common Stock--1.7%
18,500 Empresa Nacional de
Electridad S.A. ...... $ 1,059,826
(Utilities--electric)
Total Common
Stock/Holdings-- -------------
Spain................. 1,059,826
-------------
UNITED KINGDOM--4.2%
Common Stock--4.2%
72,700 Reed International
plc................... 1,230,587
(Publishing-printing)
131,000 Reuters Holdings plc.... 1,422,915
(Publishing--newspaper)
Total Common
Stock/Holdings-- -------------
United Kingdom........ 2,653,502
-------------
TOTAL HOLDINGS--EUROPE
(cost $8,596,376)..... 11,020,068
-------------
LATIN AMERICA--11.3%
ARGENTINA--2.0%
Common Stock--2.0%
23,000 Buenos Aires Embotellado
ADR................... 382,375
(Beverage bottler &
marketer)
44,000 YPF Sociedad
Anonima D ADR......... 885,500
(Oil/gas exploration &
production)
Total Common
Stock/Holdings-- -------------
Argentina............. 1,267,875
-------------
BRAZIL--2.9%
Common Stock--2.9%
24,000 Companhia Vale do Rio
Doce ADR.............. 945,000
(Mining, rail
transportation
& mineral sales)
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
LATIN AMERICA (CONTINUED)
BRAZIL (CONTINUED)
Common Stock (continued)
18,000 Telecomunicacoes
Brasilerias S.A.
ADR................... $ 895,500
(Telecommunications)
Total Common
Stock/Holdings-- -------------
Brazil................ 1,840,500
-------------
MEXICO--4.9%
Common Stock--4.9%
262,000 Cementos de Mexico S.A.
de C.V., B............ 1,006,219
(Building materials)
32,000 Panamerican
Beverages, Inc. ADR... 1,292,000
(Bottler of brand name
soft drinks in Mexico,
Brazil & Colombia)
24,500 Telefonos de Mexico S.A.
ADR................... 807,352
(Telecommunications)
Total Common
Stock/Holdings-- -------------
Mexico................ 3,105,571
-------------
PERU--1.5%
Common Stock--1.5%
457,000 Telefonica del Peru
S.A., B............... 946,715
(Telecommunications)
Total Common
Stock/Holdings-- -------------
Peru.................. 946,715
-------------
TOTAL HOLDINGS--
LATIN AMERICA
(cost $7,018,637)..... 7,160,661
-------------
NORTH AMERICA--18.5%
CANADA--5.6%
Common Stock--5.6%
30,000 Alcan Aluminium,
Ltd. ................. 971,088
(Metals--diversified)
</TABLE>
6
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- ----------------------------------------------------------
CLEMENTE GLOBAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
NORTH AMERICA (CONTINUED)
CANADA (CONTINUED)
Common Stock (continued)
32,000 Barrick Gold Corp. ..... $ 972,000
(Gold exploration &
production)
27,800 *Newbridge Networks
Corp. ................ 1,563,750
(Telecommunications
equipment)
Total Common
Stock/Holdings-- -------------
Canada................ 3,506,838
-------------
UNITED STATES--12.9%
Common Stock--12.5%
34,000 Enron Corp. ............ 1,253,750
(Oil/gas exploration &
production)
28,000 *Foundation Health
Corp. ................ 1,067,500
(Managed health care
provider)
28,500 Home Depot, Inc. ....... 1,360,875
(Retail--special line)
23,000 Intel Corp. ............ 1,308,125
(Electronics--
semiconductors)
17,000 Suntrust Banks, Inc. ... 1,190,000
(Financial services--
commercial banks)
19,200 *Sybase, Inc. .......... 446,400
(Computer software
services)
28,000 *Worldcom, Inc. ........ 1,288,000
(Utilities--
telecommunications)
Total Common Stock-- -------------
United States......... 7,914,650
-------------
<CAPTION>
- -----------------------------------------------------
SHARES/PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------
<S> <C>
NORTH AMERICA (CONTINUED)
UNITED STATES (CONTINUED)
Short-Term Instruments--0.4%
$246,000 Brown Brothers Cayman
Islands Time Deposit,
4.9375% dated 3/29/96,
due 4/01/96........... $ 246,000
Total Short-Term
Instruments-- -------------
United States......... 246,000
-------------
Total Holdings--
United States......... 8,160,650
-------------
TOTAL HOLDINGS--
NORTH AMERICA
(cost $11,008,182).... 11,667,488
-------------
Total Investments
(cost $56,019,860)**........ 98.4% $ 62,260,395
Other Assets Less
Liabilities................. 1.6% 1,029,756
------------
Total Net Assets.............. 100.0% $ 63,290,151
==========
Net Asset Value Per Share..... $10.74
======
ADR American Depositary Receipts
* Non-Income Producing Security.
+ Common stock has a warrant offering of 1
warrant for every 8 shares owned, expiring in
2001. The warrants are valued at zero.
++ Common stock has a warrant offering of 1
warrant for every 5 shares owned, expiring on
12/09/97. The warrants are valued at zero.
(a) Fair value as determined by the Board of
Directors.
(b) These warrants enable a holder to realize a
cash settlement value upon exercise of the
warrants in U.S.$ equal to the greater value of
(i) 0 or (ii)
U.S. $1 x (spot Nikkei 225 Index - strike
level)
4 x (Yen/U.S.$1.00)
</TABLE>
<TABLE>
<CAPTION>
**SUMMARY OF TOTAL
INVESTMENT COST VALUE
------------ ------------
<S> <C> <C>
Common Stock............... $ 52,893,973 $ 58,534,390
Rights..................... 32,386 31,572
Warrants................... 2,847,501 3,448,433
Short-Term Instruments..... 246,000 246,000
------------ ------------
Total Investments.......... $ 56,019,860 $ 62,260,395
========== ==========
</TABLE>
7
<PAGE> 8
NOTICE OF NEW TRANSFER AGENT AND REGISTRAR
The Fund is pleased to announce that American Stock Transfer & Trust
Company has become the Fund's new transfer agent and registrar effective March
1, 1996. American Stock Transfer also provides various shareholder services and
handles inquiries from shareholders through the Fund's toll-free number,
1-800-937-5449.
<PAGE> 9
(This page has been left blank intentionally.)
<PAGE> 10
(This page has been left blank intentionally.)
<PAGE> 11
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 1-800-937-5449)
INVESTMENT ADVISER--
Clemente Capital, Inc.
ADMINISTRATOR--
Furman Selz LLC
TRANSFER AGENT AND REGISTRAR--
American Stock Transfer & Trust
Company
CUSTODIAN--
Brown Brothers Harriman & Co.
LEGAL COUNSEL--
Fulbright & Jaworski L.L.P.
<PAGE> 12
- -------------------------------------------------
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. For shareholder account
inquiries call 1-800-937-5449.
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.
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.
[CLEMENTE GLOBAL GROWTH FUND, INC. LOGO]
CLEMENTE GLOBAL
GROWTH FUND, INC.
QUARTERLY REPORT
MARCH 31, 1996
