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SUMMARY OF GENERAL INFORMATION
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THE FUND
Clemente Global Growth Fund, Inc. 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 "ClemGlb". The Fund's New York Stock Exchange trading symbol
is CLM. Net asset value (NAV) and market price information about Clemente
Global Growth Fund, Inc. shares are published each Monday in The Wall
Street Journal, The New York Times and other newspapers. For general
information visit us at our web site http://www.clementecapital.com. For
shareholder account inquiries call 1-800-937-5449.
DIVIDEND REINVESTMENT PLAN
Through its voluntary Dividend Reinvestment Plan, shareholders of Clemente
Global Growth Fund, Inc. may elect to receive dividends and capital gains
distributions in the form of additional shares of the Fund.
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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.
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[GRAPHIC] Clemente Logo
CLEMENTE GLOBAL
GROWTH FUND, INC.
QUARTERLY REPORT
=============
MARCH 31, 1997
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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
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+ Members of Audit Committee
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EXECUTIVE OFFICES -
152 W. 57th Street, New York, NY 10019
(For latest net asset value and market data,
please call 212-765-0700 or access our web
site at http://www.clementecapital.com.
For shareholder inquiries, please call
1-800-937-5449)
INVESTMENT ADVISER -
Clemente Capital, Inc.
ADMINISTRATOR -
Rodney Square Management Corporation
TRANSFER AGENT AND REGISTRAR -
American Stock Transfer & Trust Company
CUSTODIAN -
Brown Brothers Harriman & Co.
LEGAL COUNSEL -
Fulbright & Jaworski L.L.P.
INDEPENDENT ACCOUNTANTS -
Price Waterhouse LLP
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May 15, 1997
DEAR FELLOW SHAREHOLDERS:
With the help of a timely investment strategy, as well as
more fundamental adjustments in the portfolio, the Fund
outperformed its benchmark, the Financial Times Actuaries
World Index (the "FT World Index"), during the first quarter
ended March 31, 1997.
The net asset value (NAV) for Clemente Global Growth Fund
(CLM) rose 3.86% to $10.49 while the FT World Index had a
gain of 0.07% in the same period. Total assets increased to
about US $61.82 million at the end of the quarter, from US
$59.52 million at December 31, 1996.
The share price of CLM rose by 10%, from $7.50 at the start
of the quarter, to $8.25 per share by the end of March 1997.
During this period the discount to NAV decreased from 25.74%
to 21.35%. Clemente Global Growth Fund's NAV was up 10.40%
year-to-date through May 9, 1997 compared with a rise of
5.77% for the FT World Index. The Fund's recent improved
performance reflects the benefits from the new proposed
structure. Even before a formal relationship has begun for
the management of the Fund, which requires shareholder
approval, Clemente Capital has been working informally with
Wilmington Trust to strengthen, through the use of new
technology and a more integrated investment process, both
country allocation and stock selection decisions.
THE PORTFOLIO REVIEW
With Wilmington Trust's assistance, the Fund's U.S.
portfolio focuses on companies that have good prospects for
steady growth in earnings over the next couple of years.
Recent additions are Air Products, Air Touch, and Illinois
Tool Works, which have generally outperformed a strong U.S.
market. Their presence, in time, should be felt in both the
improved performance and the dampened volatility of the
portfolio.
Short-term, a number of critical decisions were made.
Although the Japanese market was down more than 12% during
the first quarter, our holdings in Japan were focused on
blue chip exporters, such as Honda and TDK, which performed
very well in this period. We continue to broaden our
Japanese stock selection, switching from blue chips to more
domestic plays. Elsewhere in Asia, our holdings were largely
limited to Hong Kong picks which were China plays, such as
Cheung Kong Infrastructure. Europe was a story of
overweighting induced by the prospects of economic recovery,
declining inflation, steady interest rates, and corporate
restructuring. Germany, a relatively safe haven in the
sometimes turbulent surroundings of EMU, contributed three
diverse winners: a universal bank (Bayerische Vereinsbank),
a software company (SAP), and an industrial company
specializing in graphite products (SGL Carbon). Other
parts of Europe also produced strong performers, including
Ireland (Bank of Ireland and Independent Newspapers),
Holland (OCE Van Der Grinten, copier and printer systems),
and Norway (Schibsted, publishing, and Smedvig, oil
services). The emerging market allocation was focused on
the strong performers of Latin America, particularly
Brazilian companies in telecommunications (Telebras), power
generation (Cemig) and mining (CVRD).
LOOKING AHEAD
We are confident that we can sustain and improve upon the
recent outperformance of the portfolio. Global growth and
inflation fundamentals remain very attractive, with U.S.
monetary policy still the major potential disruption to the
world's capital markets. Fears of a protracted tightening
by the Federal Reserve are greatly exaggerated, and markets
with strong or improving fundamentals will continue to
perform well. We believe that we are well positioned in
such markets, including the hard
currencies of Europe, Germany, Holland, Switzerland - as
well as in the faster growing economies of Ireland and
Scandinavia. Our European holdings should be relative
outperformers, with strong earnings flowing from both a
cyclical recovery and from corporate restructuring.
In sharp contrast to Europe, caution still prevails in the
Pacific Rim, with Hong Kong and China's "red chip" equities
dominating regional holdings. Our traditional strength in
the region may soon get an opportunity to contribute to the
outperformance of CLM. South Korea is looking increasingly
attractive, in terms of both liquidity and valuations,
Thailand's political, financial, and currency woes are being
resolved, and the solid corporate earnings growth of the
Philippines and Indonesia are again producing attractive
valuations following the recent sell-off in the two markets.
Also playing to our strength is the gradual recovery of the
Japanese markets, spurred by an expected economic rebound
and continued financial market reforms. Our strategy is well
placed to invest in recovering property, and domestic
restructuring issues. Our significant overweighting in
Latin America will be maintained as economic recovery and
reforms help the region stand out from most emerging
markets, despite the risks associated with U.S. monetary
tightening.
Supported by an attractive equity market environment, and
assisted by our partnership with Wilmington Trust in the
management of the portfolio, we look forward to consistent
competitive returns for the portfolio.
Thank you for your on-going support of the Clemente Global
Growth Fund.
Sincerely yours,
/s/ Lilia Clemente /s/ Leopoldo Clemente
Lilia C. Clemente Leopoldo M. Clemente, Jr.
Chairman President
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<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
---------------- -----
<S> <C> <C> <C>
COMMON STOCK - 98.0%
ARGENTINA - 0.9%
Disco S.A. * Retail 50,000 $ 550,220
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BRAZIL - 9.2%
Companhia Energetica De Minas
Gerais ADR Utilities 35,000 1,447,478
Companhia Vale Do Rio Doce ADR Mining 65,000 1,477,417
Telecomunicacoes Brasileiras S.A. ADR Telecommunications 27,000 2,764,125
---------
5,689,020
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CANADA - 5.3%
Newbridge Networks Corp. * Electrical/Electronics 38,800 1,110,650
Noranda, Inc. Metals 47,400 1,053,066
Power Corporation of Canada Holding Company 55,700 1,136,529
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3,300,245
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FINLAND - 3.7%
Merita, Ltd. Banking 347,000 1,183,398
Valmet Corp. Machinery 62,690 1,119,284
---------
2,302,682
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FRANCE - 1.7%
Alcatel Alsthom Telecommunications 8,700 1,043,557
---------
GERMANY - 6.6%
Bayerische Vereinsbank AG Banking 37,000 1,522,570
SAP AG Computer Software 8,600 1,454,502
SGL Carbon AG Chemicals 8,200 1,118,271
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4,095,343
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HONG KONG - 7.5%
Cheung Kong Infrastructure
Holdings, Ltd. Construction 380,000 1,073,959
Guangdong Investments Financial Services 1,500,000 1,287,279
Guangshen Railway Co., Ltd. * Transportation 2,600,000 1,124,031
Hutchinson Whampoa, Ltd. Real Estate 155,000 1,165,165
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4,650,434
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IRELAND - 4.6%
Bank of Ireland Banking 147,382 1,464,983
Independent Newspapers plc Publications 254,163 1,363,449
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2,828,432
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JAPAN - 17.2%
Bank of Tokyo-Mitsubishi Banking 84,000 $1,308,472
Canon, Inc. Electrical Equipment 75,000 1,604,114
Eisai Co., Ltd. Pharmaceuticals 59,000 1,009,522
Honda Motor Co. Autos 50,000 1,489,102
Itochu Corp. International Trade 100,000 489,103
Mitsubishi Estate Co., Ltd. Real Estate 44,000 468,764
Namco, Ltd. Leisure Product 34,300 935,705
Sumitomo Realty & Development Real Estate 250,000 1,678,770
TDK Corp. Electronics 24,000 1,646,486
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10,630,038
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MEXICO - 3.3%
Corporacion Interamericana de
Entretenimiento S.A. Leisure Products 547,800 2,026,379
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NETHERLANDS - 4.2%
Oce-Van Der Grinten N.V. Electrical Equipment 12,000 1,543,629
Vernidge Nederlandse Uitgevbedri
Verigd Bezit Publications 50,000 1,022,517
---------
2,566,146
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NORWAY - 4.4%
Schibsted ASA Publications 70,900 1,432,280
Smedvig ASA (A Shares) Oil Integrated 41,300 1,021,106
Smedvig ASA (B Shares) Oil Integrated 10,325 249,050
---------
2,702,436
---------
PERU - 2.9%
CPT Telefonica del Peru S.A. (B Shares) Telecommunications 820,000 1,818,717
---------
PHILIPPINES - 1.7%
Ayala Land, Inc. (B Shares) Real Estate 900,000 1,024,104
---------
SPAIN - 2.2%
Vallehermoso S.A. Real Estate 59,000 1,368,139
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SWEDEN - 1.5%
Trygg-Hansa AB (B Shares) Insurance 47,000 938,459
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SWITZERLAND - 3.2%
Alusuisse-Lonza Holding AG Multi-Industry 1,200 1,005,305
Sulzer AG Engineering/Machinery 1,500 976,576
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1,981,881
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THAILAND - 1.3%
Bangkok Bank Co., Ltd. Banking 80,000 775,895
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UNITED KINGDOM - 1.2%
BAA plc Business/Public services 91,680 770,244
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UNITED STATES - 15.4%
Health Management Assoc., Inc.* Healthcare 50,000 1,187,500
Intel Corp. Semiconductors 23,000 3,199,875
Sunbase Asia, Inc.* Industrial Components 118,000 523,625
Sungard Data Systems, Inc.* Computer Services 30,000 1,305,000
Suntrust Banks, Inc. Banking 34,000 1,576,750
Worldcom, Inc. Telecommunications 78,400 1,724,800
----------
9,517,550
----------
Total Common Stock (Cost $48,965,699) 60,579,921
----------
TIME DEPOSIT - 4.4%
BBH Cayman Time Deposit, 5.75%, 04/01/97(Cost $2,721,000) $2,721,000 2,721,000
---------
TOTAL INVESTMENTS (COST $51,689,699)** - 102.4% $ 63,300,921
OTHER ASSETS AND LIABILITIES, NET - (2.4)% (1,478,274)
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NET ASSETS - 100.0% $ 61,822,647
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NET ASSET VALUE PER SHARE $10.49
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<FN>
ADR American Depository Receipts
* Non-income Producing Security
** Summary of Total Investments:
COST VALUE
---- -----
Common Stock $48,965,699 $60,579,921
Short-Term Investments 2,721,000 2,721,000
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Total Investments $51,686,699 $63,300,921
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</FN>
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