MERRILL LYNCH
GLOBAL
CONVERTIBLE
FUND, INC.
FUND LOGO
Quarterly Report
July 31, 1995
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.
<PAGE>
Merrill Lynch
Global Convertible
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL CONVERTIBLE FUND, INC.
OFFICERS AND
DIRECTORS
Arthur Zeikel, President and Director
Herbert I. London, Director
Robert R. Martin, Director
Joseph L. May, Director
Andre F. Perold, Director
Terry K. Glenn, Executive Vice President
N. John Hewitt, Senior Vice President
Donald C. Burke, Vice President
Harry E. Dewdney, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
State Street Bank & Trust Company
P.O. Box 351
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
TO OUR SHAREHOLDERS
As we enter the beginning of the third quarter of the year, the
rather bullish, healthy momentum of financial markets we have seen
since the start of 1995 still continues. US equity markets continue
to reach new heights and the bond markets, while volatile, still
show good returns for the year.
One of the features during July was the Humphrey-Hawkins testimony
by Federal Reserve Board Chairman Alan Greenspan, which seemed to
indicate that there could be another cut of 25 basis points (0.25%)
in interest rates by summer's end. Greenspan indicated that
inflation is slowing and is expected to continue to do so, an
encouraging prediction, in our opinion. He also expressed the belief
that the worst of any downside economic risks are behind us.
US equity markets appear to have benefitted by the liquidity factor
with funds flowing in from various sources, including corporate buy-
backs as excess cash is accumulated in industries where
profitability is in an upswing. Up until now, any equity market sell-
offs have been rather limited as investors stand ready to commit
funds on price weaknesses. While it is possible that the
fundamentals could change as the year progresses, leading to some
equity price weakness, at the moment the strength continues. Bond
market investors, while nervous, appear to anticipate that interest
rates will hold or move a shade lower in coming weeks.
Overseas, most equity markets have performed well in 1995, but
significantly below results in the United States. One poor performer
has been the Japanese Nikkei 225 Index, which has dropped over 15%
thus far in 1995. In general, a number of countries in Europe have
lowered interest rates and added liquidity in an attempt to combat
lethargic economic activity with forecasts indicating that economic
growth in 1995 will be slower than in 1994. Japan remains in a no-
growth environment as the government tries to formulate policies to
improve conditions. Lately there seems to be a constructive,
realistic attitude developing, and the recent moves to weaken the
yen versus the US dollar are bringing some confidence back to
investors.
<PAGE>
Portfolio Strategy
Net assets of Merrill Lynch Global Convertible Fund, Inc. continue
to increase, rising from $128 million on April 30, 1995 to over $142
million on July 31, 1995. Most of these additional funds were
allocated to the United States because performance has continued to
be better than in most other markets worldwide. Our US portion of
nearly 68% of net assets at July 31, 1995 compares to 62% as of
April 30. We reduced our Japanese holdings from 16.6% to 12.2% over
the three-month period ended July 31 by selling issues where we had
substantial gains and where the outlook for further gains was
limited in response to the interest rate conditions in Japan and the
expectation that the Japanese yen versus the US dollar would weaken
in coming weeks. We adjusted our portfolio positions in yen-
denominated convertibles to take advantage of anticipated improvements
in the Nikkei 225 Index by concentrating on very low-premium issues
as opposed to high-premium issues. It is our opinion that further
interest rate reductions in Japan will be limited in scope. We
continue to have portfolio positions in nine countries where we
believe opportunities on a selective basis will provide attractive
total returns.
In general, the outlook for the balance of 1995 continues to appear
favorable, in our opinion. Interest rates in the United States
should be stable to lower, equity markets should continue to be
firm, albeit to a lesser degree than we have seen for the first
seven months of 1995. These are factors leading to a good climate
for convertible issues.
Overseas, equity and bond markets generally should be favorable with
excellent opportunities for positive total returns. In Japan, it is
our opinion that equity markets should rally. As we have noted, the
Fund's Japanese holdings should benefit to a greater degree from
higher equity prices than lower interest rates, since rates are at
extremely low levels now. The yen relative to the US dollar must be
watched closely as there is a concentrated effort by Japanese and US
authorities to push the yen lower, as evidenced by measures taken on
August 2, 1995, coupled with concerted foreign exchange
intervention.
In Conclusion
We thank you for your ongoing interest in Merrill Lynch Global
Convertible Fund, Inc., and we look forward to assisting you with
your financial needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Harry E. Dewdney)
Harry E. Dewdney
Vice President and
Portfolio Manager
August 14, 1995
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 approximately 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).
<PAGE>
Performance data for the Fund's Class A and Class B Shares are
presented in the "Performance Summary", "Recent Performance Results"
and "Average Annual Total Return" tables on pages 4 and 5. Data for
Class C and Class D Shares are also presented in the "Recent
Performance Results" and "Aggregate Total Return" tables on pages 4
and 5.
The "Recent Performance Results" table 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 July 31, 1995 and
for Class C and Class D Shares for the since inception and 3-month
periods ended July 31, 1995. 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.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
7/31/95 4/30/95 7/31/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Global Convertible Fund, Inc. Class A Shares* $11.06 $10.73 $10.74 + 3.27%(1) +3.08%
ML Global Convertible Fund, Inc. Class B Shares* 11.10 10.78 10.80 + 3.59(1) +2.97
ML Global Convertible Fund, Inc. Class C Shares* 11.08 10.76 10.74 + 3.46(1) +2.97
ML Global Convertible Fund, Inc. Class D Shares* 11.06 10.74 10.69 + 3.75(1) +2.98
ML Global Convertible Fund, Inc. Class A Shares--Total Return* + 6.93(2) +3.87(3)
ML Global Convertible Fund, Inc. Class B Shares--Total Return* + 5.72(4) +3.50(5)
ML Global Convertible Fund, Inc. Class C Shares--Total Return* + 6.20(6) +3.54(7)
ML Global Convertible Fund, Inc. Class D Shares--Total Return* + 6.92(8) +3.72(9)
Dow Jones Industrial Average** 4,708.47 4,321.27 3,764.50 +25.08 +8.96
S&P 500 Index** 562.06 514.71 458.26 +22.65 +9.20
Japan Nikkei Dow Jones 225** 16,677.53 16,806.75 20,449.39 -15.65 -0.77
London Financial Times Index** 3,463.30 3,216.70 3,082.60 - 7.99 +7.67
<PAGE>
<FN>
++Investment results shown for Class C and Class D Shares are since
inception (10/21/94).
*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.
(1)Percent change includes reinvestment of $0.029 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.368 per share ordinary
income dividends and $0.029 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.085 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.269 per share ordinary
income dividends and $0.029 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.057 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.277 per share ordinary
income dividends and $0.029 per share capital gains distributions.
(7)Percent change includes reinvestment of $0.060 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.318 per share ordinary
income dividends and $0.029 per share capital gains distributions.
(9)Percent change includes reinvestment of $0.079 per share ordinary
income dividends.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/95 + 5.93% + 0.37%
Five Years Ended 6/30/95 + 8.13 + 6.97
Inception (11/4/88) through 6/30/95 + 7.09 + 6.23
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/95 + 4.84% + 0.84%
Five Years Ended 6/30/95 + 7.01 + 7.01
Inception (2/26/88) through 6/30/95 + 5.72 + 5.72
[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 6/30/95 + 4.67% + 3.67%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/21/94) through 6/30/95 + 5.39% - 0.14%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
<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>
11/4/88--12/31/88 $ 9.97 $ 9.76 $0.173 $0.101 + 0.68%
1989 9.76 9.50 0.431 0.483 + 6.83
1990 9.50 8.20 0.047 0.497 - 8.07
1991 8.20 9.06 0.151 0.382 +17.22
1992 9.06 9.67 0.123 0.267 +11.12
1993 9.67 10.68 0.081 0.327 +14.74
1994 10.68 10.29 0.029 0.304 - 0.54
1/1/95--7/31/95 10.29 11.06 -- 0.159 + 9.07
------ ------
Total $1.035 Total $2.520
Cumulative total return as of 7/31/95: +60.29%**
<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>
2/26/88--12/31/88 $10.00 $ 9.77 $0.173 $0.313 + 2.63%
1989 9.77 9.51 0.431 0.376 + 5.68
1990 9.51 8.25 0.047 0.373 - 8.94
1991 8.25 9.12 0.151 0.284 +15.99
1992 9.12 9.74 0.123 0.166 + 9.99
1993 9.74 10.74 0.081 0.228 +13.48
1994 10.74 10.35 0.029 0.205 - 1.45
1/1/95--7/31/95 10.35 11.10 -- 0.106 + 8.30
------ ------
Total $1.035 Total $2.051
Cumulative total return as of 7/31/95:+52.61%**
<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
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
LATIN Shares Percent of
AMERICA Industries Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Mexico Utilities-- 20,000 Telefonos de Mexico, S.A. de C.V.
Communications (TELMEX) (ADR) (a) $ 756,200 $ 660,000 0.46%
Total Investments in Latin American
Securities 756,200 660,000 0.46
NORTH
AMERICA
United Metals & 10,000 WHX Corp. 179,350 120,000 0.08
States Mining
Retail Stores 87,741 Home Depot, Inc. 4,020,587 3,849,636 2.70
Total Investments in United States
Common Stocks 4,199,937 3,969,636 2.78
Convertible Preferred Stocks
Canada Oil & Gas 25,000 Occidental Petroleum Corp., Pfd.,
Producers Series A 1,371,600 1,553,125 1.09
Total Investments in Canadian
Convertible Preferred Stocks 1,371,600 1,553,125 1.09
<PAGE>
United Chemicals 20,000 Ashland Oil Inc., $6.75 Pfd. 1,065,800 1,125,000 0.79
States
Data Processing 20,000 UNISYS Corp., $3.75 Pfd., Series A 1,233,875 812,500 0.57
Food/Beverage/ 30,000 ConAgra Inc., Pfd., Class E 998,025 1,143,750 0.80
Tobacco & Household
Insurance 50,000 American General Corp., Pfd. 2,593,287 2,712,500 1.90
50,000 St. Paul Companies, Inc., Pfd. 2,581,049 2,625,000 1.84
------------ ------------ -------
5,174,336 5,337,500 3.74
Metals & Mining 35,000 USX Corp., $3.25 Pfd. 1,688,800 1,680,000 1.18
35,500 WHX Corp., Pfd. 1,630,980 1,677,375 1.18
20,000 WHX Corp., Pfd. B 1,000,150 880,000 0.62
------------ ------------ -------
4,319,930 4,237,375 2.98
Real Estate 50,000 Merry Land & Investment Company,
Investment Trust Inc., Pfd. 1,261,637 1,381,250 0.97
Transportation 20,000 Delta Airlines, Inc., $3.50 Pfd. C 1,010,350 1,237,500 0.87
Total Investments in United States
Convertible Preferred Stocks 15,063,953 15,274,875 10.72
Face
Amount Convertible Bonds
Canada Oil & US$ 4,000,000 Amoco Canada Petro Co., Ltd., 7.375%
Related due 9/01/2013 4,652,500 5,020,000 3.52
Total Investments in Canadian
Convertible Bonds 4,652,500 5,020,000 3.52
United Automobile Parts 2,510,000 The Pep Boys--Manny, Moe & Jack,
States 4% due 9/01/1999 2,461,275 2,397,050 1.68
Building & 6,050,000 Masco Corp., 5.25% due 2/15/2012 5,158,750 5,203,000 3.65
Construction
Chemicals 4,200,000 Ashland Oil Inc., 6.75% due
7/01/2014 3,981,750 4,147,500 2.91
Computer 500,000 Cray Research, Inc., 6.125% due
Services 2/01/2011 510,000 395,000 0.28
<PAGE>
Environmental 4,500,000 Browning-Ferris Industries, Inc.,
Control 6.25% due 8/15/2012 4,350,000 4,590,000 3.22
Forest Products/ 4,720,000 Boise Cascade Corp. (Series E), 7%
Paper & Packaging due 5/01/2016 4,351,550 5,050,400 3.54
Industrial 3,000,000 Rouse Co., 5.75% due 7/23/2002 2,527,100 2,760,000 1.93
Insurance 2,100,000 Aegon N.V., 4.75% due 11/01/2004 2,462,500 2,727,480 1.91
2,000,000 Chubb Capital Corp., 6% due 5/15/1998 2,031,250 2,090,000 1.46
------------ ------------ -------
4,493,750 4,817,480 3.37
Leisure 4,500,000 Time Warner Inc., 8.75% due 1/10/2015 4,544,750 4,696,875 3.29
Machine 2,750,000 Cooper Industries, Inc., 7.05% due
Diversified 1/01/2015 2,825,000 2,805,000 1.97
Metals & 3,000,000 Homestake Mining Co., 5.50% due
Mining 6/23/2000 3,100,750 3,030,000 2.12
2,000,000 USX Corp., 7% due 6/15/2017 1,823,850 1,835,000 1.29
------------ ------------ -------
4,924,600 4,865,000 3.41
Natural 4,700,000 Consolidated Natural Gas Co., 7.25%
Gas due 12/15/2015 4,688,250 4,817,500 3.38
Oil & Related 5,700,000 Pennzoil Co., 4.75% due 10/01/2003 5,251,625 5,443,500 3.82
Transportation 1,500,000 Alaska Air Group, Inc., 6.50% due
6/15/2005 1,555,000 1,614,375 1.13
Total Investments in United States
Convertible Bonds 51,623,400 53,602,680 37.58
Total Investments in North American
Securities 76,911,390 79,420,316 55.69
PACIFIC Shares
BASIN Held Common Stocks
Hong Kong Utilities-- 70,000 Shandong Huaneng Power Company Ltd.
Electric (ADR) (a) 704,200 586,250 0.41
Total Investments in Hong Kong
Common Stocks 704,200 586,250 0.41
<PAGE>
Japan Financial Services 10,000 Daiwa Securities Co., Ltd. 109,055 120,400 0.08
10,000 Nikko Securities Co., Ltd. 91,790 92,799 0.07
10,000 Yamaichi Securities Co., Ltd. 94,005 62,585 0.04
------------ ------------ -------
294,850 275,784 0.19
Machinery 20,000 Shimadzu Corp. 156,900 122,444 0.09
Total Investments in Japanese Common
Stocks 451,750 398,228 0.28
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
PACIFIC
BASIN Shares Percent of
(concluded) Industries Held Convertible Preferred Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Hong Kong Food & 20,000 Dairy Farms International Holdings
Beverage Ltd., $6.50 Pfd. $ 1,977,000 $ 1,500,000 1.05%
Total Investments in Hong Kong
Convertible Preferred Stocks 1,977,000 1,500,000 1.05
Face
Amount Convertible Bonds
Hong Kong Real Estate HK$ 3,500,000 Wharf Capital Ltd., 5% due 7/15/2000 3,640,000 3,535,000 2.48
Total Investments in Hong Kong
Convertible Bonds 3,640,000 3,535,000 2.48
Japan Auto & YEN 50,000,000 No. 2 Toyota Motor Corp., 1.20% due
Truck 1/28/1998 572,731 594,616 0.42
Chemicals 100,000,000 No. 6 Sumitomo Chemical Co., 1.20%
due 9/29/2006 1,042,946 1,140,391 0.80
Electronics 30,000,000 No. 3 Matsushita Electric Industrial
Co., 1.40% due 9/30/1996 362,443 361,199 0.25
100,000,000 No. 5 Matsushita Electric Industrial
Co., 1.30% due 3/29/2002 1,026,774 1,144,934 0.80
75,000,000 No. 11 Sharp Corp., 1.50% due 9/30/1998 803,237 879,998 0.62
------------ ------------ -------
2,192,454 2,386,131 1.67
<PAGE>
Food & 100,000,000 No. 9 Asahi Breweries, 0.95% due
Beverage 12/26/2002 1,114,675 1,118,810 0.78
50,000,000 No. 1 Sanyo Coca-Cola Bottling, Inc.,
0.90% due 6/30/2003 522,384 524,194 0.37
50,000,000 No. 3 Sapporo Breweries, Ltd., 1.20%
due 12/18/2009 525,379 549,182 0.39
------------ ------------ -------
2,162,438 2,192,186 1.54
Industrial 90,000,000 No. 3 Sony Corp., 1.40% due 9/30/2003 982,425 1,057,020 0.74
Leisure 50,000,000 No. 4 Canon Co., 1.20% due 12/20/2005 553,669 621,876 0.44
Machinery 50,000,000 No. 8 Matsushita Electric Works, 2.70%
due 5/31/2002 640,113 622,444 0.44
50,000,000 No. 9 Matsushita Electric Works, 1%
due 11/30/2005 486,611 553,158 0.39
70,000,000 No. 8 NEC Corp., 1.70% due 3/31/1999 878,740 896,865 0.63
60,000,000 No. 9 NEC Corp., 1.90% due 3/30/2001 760,325 768,060 0.54
70,000,000 No. 2 Nippondenso Co., Ltd., 1.20% due
12/26/1997 787,148 818,946 0.57
------------ ------------ -------
3,552,937 3,659,473 2.57
Multi-Industry 60,000,000 No. 5 Asahi Glass Co., Ltd., 1.90% due
12/26/2008 624,629 688,323 0.48
50,000,000 No. 3 Mitsui & Co., 1.50% due 3/31/2003 529,601 573,035 0.40
------------ ------------ -------
1,154,230 1,261,358 0.88
Pharmaceuticals 50,000,000 No. 3 Dainippon Pharmaceutical, 1.40%
due 9/30/2003 511,213 559,405 0.39
80,000,000 No. 3 Sankyo Co., Ltd., 0.70% due
3/30/2001 872,081 945,934 0.66
------------ ------------ -------
1,383,294 1,505,339 1.05
Retail Stores 30,000,000 No. 4 Best Denki Co., Ltd., 1.90%
due 2/28/2002 311,038 352,681 0.25
50,000,000 No. 1 Taiyo Company Ltd., 2.50% due
2/28/2002 594,601 572,467 0.40
------------ ------------ -------
905,639 925,148 0.65
<PAGE>
Transportation 50,000,000 No. 6 Keihan Electric Railway, 1% due
3/31/2003 539,009 524,761 0.37
50,000,000 No. 1 Nankai Electric Railway, 2.70%
due 3/30/2001 593,306 588,369 0.41
50,000,000 No. 6 Yamato Transport Co., Ltd.,
1.70% due 9/30/2002 539,151 570,195 0.40
------------ ------------ -------
1,671,466 1,683,325 1.18
Total Investments in Japanese
Convertible Bonds 16,174,229 17,026,863 11.94
Total Investments in Pacific Basin
Securities 22,947,179 23,046,341 16.16
WESTERN Shares
EUROPE Held Common Stocks
United Business 71,944 Saatchi & Saatchi Co., PLC 217,005 139,301 0.10
Kingdom Services
Total Investments in United Kingdom
Common Stocks 217,005 139,301 0.10
Face
Amount Convertible Bonds
France Auto & Truck Ffr 10,000 Peugeot S.A., 2% due 1/01/2001 1,851,331 1,993,634 1.40
Leisure 4,200,000 Euro Disney SCA, 6.75% due 10/01/2001 686,297 775,884 0.54
Total Investments in French
Convertible Bonds 2,537,628 2,769,518 1.94
United Business Pound 2,000,000 Hanson Trust PLC, 9.50% due 1/31/2006 3,354,923 3,248,406 2.28
Kingdom Services Sterling
Food & Beverage 1,000,000 Allied-Lyons PLC, 6.75% due 7/07/2008 1,676,191 1,560,195 1.09
2,000,000 Grand Metropolitan PLC, 6.50% due
1/31/2000 2,142,500 2,145,000 1.50
550,000 Northern Foods PLC, 6.75% due
8/08/2008 867,775 737,092 0.52
------------ ------------ -------
4,686,466 4,442,287 3.11
<PAGE>
Oil & Related 1,200,000 EE Finance, 8.75% due 6/27/2006 1,860,229 1,896,237 1.33
Transportation 1,000,000 P&O Steam Navigation Co., 7.25%
due 5/19/2003 1,605,646 1,544,193 1.08
Total Investments in United
Kingdom Convertible Bonds 11,507,264 11,131,123 7.80
Total Investments in Western
European Securities 14,261,897 14,039,942 9.84
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Face Percent of
Amount Short-Term Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Commercial US$ 4,727,000 General Electric Capital Corp.,
States Paper* 5.80% due 8/01/1995 $ 4,727,000 $ 4,727,000 3.31%
US Government US Treasury Bills:
& Agency * 3,000,000 5.37% due 8/17/1995 2,992,840 2,992,840 2.10
Obligations 1,395,000 5.42% due 8/17/1995 1,391,640 1,391,640 0.97
15,000,000 5.355% due 8/24/1995 14,948,681 14,948,681 10.48
------------ ------------ -------
19,333,161 19,333,161 13.55
Total Investments in Short-Term
Securities 24,060,161 24,060,161 16.86
Total Investments $138,936,827 141,226,760 99.01
============
Unrealized Appreciation on Forward Foreign Exchange Contracts** 235,873 0.16
Other Assets Less Liabilities 1,179,785 0.83
------------ -------
Net Assets $142,642,418 100.00%
============ =======
<PAGE>
Net Asset Class A--Based on net assets of $35,843,386 and 3,241,465
Value: shares outstanding $ 11.06
============
Class B--Based on net assets of $94,745,548 and 8,534,460
shares outstanding $ 11.10
============
Class C--Based on net assets of $7,829,083 and 706,621
shares outstanding $ 11.08
============
Class D--Based on net assets of $4,224,401 and 381,821
shares outstanding $ 11.06
============
<FN>
(a)American Depositary Receipt.
*Commercial Paper and certain US Government & Agency Obligations are
traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Fund.
**Forward foreign exchange contracts as of July 31, 1995 are as follows:
Unrealized
Foreign Currency Sold Expiration Date Appreciation
YEN 450,000,000 August 1995 $235,873
Total Unrealized Appreciation--Net on Forward Foreign
Exchange Contracts (US$ Commitment--$5,357,504) $235,873
========
</TABLE>
