MERRILL LYNCH
GLOBAL
CONVERTIBLE
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1996
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.
Statements and other information herein are as dated
and are subject to change.
<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
James H. Bodurtha, 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
Evidence of strength in the US
economy in recent weeks has
caused uncertainty in bond mar-
kets, leading to a poor perform-
ance so far in 1996. For example,
the indexes of US Treasury bonds
with maturities of more than ten
years had a -9.72% total return
for 1996 as of April 30, 1996, with
the total return of the unmanaged
Merrill Lynch Corporate Bond
Index -4.25% for the same period.
Investor confidence waned with
the release of recent strong gross
domestic product figures and the
suggestion that the economic
strength will continue in coming
months. Now, instead of expecta-
tions that the Federal Reserve
Board will ease interest rates,
there is concern that the Federal
Reserve Board will take a neutral
stance, perhaps even raising
interest rates as the year pro-
gresses. At the same time, infla-
tion still appears to be under
control but recent sharp spikes
upward in the price of petro-
leum products caused investor
concerns.
In spite of the weakness in US
bond prices, equity markets con-
tinued firm, albeit with correc-
tions along the way. The main
reasons for this strength appear to
be the liquidity factor coupled
with investor bullishness and the
feeling that corporate profits will
hold steady. There appears to be a
rather sharp difference in opinion
among analysts as to the direction,
strength and movement of the
economy, leading to more uncer-
tainty at this time.
<PAGE>
Outside of the United States, most
world markets performed well so
far in 1996. In Europe, soft eco-
nomic conditions prevail, with
sluggish activity and high unem-
ployment. We believe economic
conditions will improve in late
1996 and into 1997. In Asia, econo-
mies are performing well, espe-
cially Japan because of an easy
monetary policy, low inflation and
strong domestic demand.
The US dollar has been strong
against most world currencies,
especially the Deutschemark and
Japanese yen. While this trend
does not benefit our offshore
holdings, it appears to us that the
dollar strength will be more
modest, perhaps even with the US
dollar easing, in coming months.
Portfolio Strategy
During the quarter ended April
30, 1996, our portfolio allocation
remained unchanged as there
were few developments to cause
us to alter our offshore investment
strategy. The relatively small
increase in the Fund's net assets
from $68.6 million on January 31,
1996 to $71.4 million on April 30,
1996 did not materially affect our
portfolio. We increased our cash
position from 7.30% of net assets
to 11.21% during the April quarter,
reflecting our opinion that there
could be downward market cor-
rections in coming weeks, allow-
ing us to invest our surplus funds
to our advantage. Our 18% of net
asset exposure in Japan reflects
our opinion that the Japanese
equity market will continue the
positive gains seen so far in 1996
and that the economy will con-
tinue to improve in response to
government stimulation. Other
areas in Europe and the Far East
appear to be poised to move higher
in coming weeks.
<PAGE>
While the US equity market has
been firm, although subject to
volatile conditions, bond markets
have been on the weak side,
leading to a mixed situation for
convertible securities. However,
the environment for world con-
vertibles still appears favorable,
and we will continue to seek to
provide attractive total returns for
investors in coming weeks and
months.
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
(Harry E. Dewdney)
Harry E. Dewdney
Vice President and Portfolio Manager
June 11, 1996
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the Fund through
the Merrill Lynch Select Pricing SM System, which offers four
pricing alternatives:
<PAGE>
*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).
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 (continued)
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/96 +11.70% +5.84%
Five Years Ended 3/31/96 + 9.60 +8.43
Inception (11/4/88) through 3/31/96 + 7.40 +6.62
<PAGE>
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/96 +10.57% +6.58%
Five Years Ended 3/31/96 + 8.48 +8.48
Inception (2/26/88) through 3/31/96 + 6.03 +6.03
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0% after
4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/96 +10.48% +9.49%
Inception (10/21/94) through 3/31/96 + 7.96 +7.96
[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*
Year Ended 3/31/96 +11.50% +5.64%
Inception (10/21/94) through 3/31/96 + 8.92 +4.93
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
PERFORMANCE DATA (continued)
<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
1995 10.29 10.27 -- 1.280 +12.54
1/1/96--4/30/96 10.27 10.53 -- 0.061 + 3.13
------ ------
Total $1.035 Total $3.702
Cumulative total return as of 4/30/96: +70.56%**
<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
1995 10.35 10.35 -- 1.146 +11.30
1/1/96--4/30/96 10.35 10.60 -- 0.032 + 2.73
------ ------
Total $1.035 Total $3.123
Cumulative total return as of 4/30/96: +61.12%**
<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>
Performance
Summary--
Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $10.74 $10.33 $0.029 $0.162 - 2.03%
1995 10.33 10.34 -- 1.146 +11.43
1/1/96--4/30/96 10.34 10.58 -- 0.036 + 2.67
------ ------
Total $0.029 Total $1.344
Cumulative total return as of 4/30/96: +12.08%**
<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>
Performance
Summary--
Class D Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $10.69 $10.30 $0.029 $0.170 - 1.78%
1995 10.30 10.29 -- 1.252 +12.34
1/1/96--4/30/96 10.29 10.54 -- 0.058 + 2.99
------ ------
Total $0.029 Total $1.480
Cumulative total return as of 4/30/96: +13.65%**
<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 include sales charge; results would be
lower if sales charge was included.
</TABLE>
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
12 Month 3 Month
4/30/96 1/31/96 4/30/95 %Change %Change
<S> <C> <C> <C> <C> <C>
ML Global Convertible Fund, Inc. Class A Shares* $10.53 $10.50 $10.73 - 1.86% +0.29%
ML Global Convertible Fund, Inc. Class B Shares* 10.60 10.57 10.78 - 1.67 +0.28
ML Global Convertible Fund, Inc. Class C Shares* 10.58 10.55 10.76 - 1.67 +0.28
ML Global Convertible Fund, Inc. Class D Shares* 10.54 10.51 10.74 - 1.86 +0.29
ML Global Convertible Fund, Inc. Class A Shares--Total Return* +10.53(1) +0.87(2)
ML Global Convertible Fund, Inc. Class B Shares--Total Return* + 9.27(3) +0.59(4)
ML Global Convertible Fund, Inc. Class C Shares--Total Return* + 9.26(5) +0.63(6)
ML Global Convertible Fund, Inc. Class D Shares--Total Return* +10.24(7) +0.84(8)
Dow Jones Industrial Average** +32.03 +3.78
S&P 500 Index** +30.16 +3.39
Japan Nikkei Dow Jones 225** +31.15 +5.90
London Financial Times Index** +18.69 +1.56
<FN>
*Investment results shown do not reflect any 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 $1.267 per share
ordinary income dividends.
(2)Percent change includes reinvestment of $0.061 per share
ordinary income dividends.
(3)Percent change includes reinvestment of $1.129 per share
ordinary income dividends.
(4)Percent change includes reinvestment of $0.032 per share
ordinary income dividends.
(5)Percent change includes reinvestment of $1.127 per share
ordinary income dividends.
(6)Percent change includes reinvestment of $0.036 per share
ordinary income dividends.
(7)Percent change includes reinvestment of $1.241 per share
ordinary income dividends.
(8)Percent change includes reinvestment of $0.058 per share
ordinary income dividends.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
LATIN Shares Value Percent of
AMERICA Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Mexico Utilities--Communications 20,000 Telefonos de Mexico, S.A. de C.V.
(TELMEX) (ADR) (a) $ 756,200 $ 680,000 0.95%
Total Investments in Latin American
Securities 756,200 680,000 0.95
NORTH
AMERICA
United States Food/Beverage/ 30,531 ConAgra Inc. 998,025 1,179,260 1.65
Tobacco & Household
Metals & Mining 10,000 ++WHX Corp. 179,350 115,000 0.16
Retail Stores 70,741 Home Depot, Inc. 3,249,362 3,351,355 4.70
Total Investments in United States
Common Stocks 4,426,737 4,645,615 6.51
Convertible Preferred Stocks
Canada Oil & Gas Producers 25,000 Occidental Petroleum Corp., Pfd.,
Series A 1,371,600 1,618,750 2.27
Total Investments in Canadian
Convertible Preferred Stocks 1,371,600 1,618,750 2.27
United States Data Processing 20,000 UNISYS Corp., $3.75 Pfd., Series A 1,233,875 587,500 0.82
Insurance 25,000 American General Corp., Pfd. 1,306,729 1,287,500 1.80
25,000 St. Paul Companies, Inc., Pfd. 1,307,892 1,350,000 1.89
----------- ----------- -------
2,614,621 2,637,500 3.69
Metals & Mining 50,000 USX Corp., $3.25 Pfd. 2,413,750 2,362,500 3.31
35,500 WHX Corp., Pfd. 1,630,980 1,619,687 2.27
20,000 WHX Corp., Pfd., Series B 1,000,150 892,500 1.25
----------- ----------- -------
5,044,880 4,874,687 6.83
Real Estate 50,000 Merry Land & Investment
Investment Trust Company, Inc., Pfd. 1,261,637 1,368,750 1.92
Total Investments in United States
Convertible Preferred Stocks 10,155,013 9,468,437 13.26
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Face Value Percent of
(concluded) Industries Amount Convertible Bonds Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Automobile Parts US$ 2,000,000 The Pep Boys--Manny, Moe & Jack,
4% due 9/01/1999 $ 1,931,875 $ 2,060,000 2.89%
Building &
Construction 2,000,000 Masco Corp., 5.25% due 2/15/2012 1,765,500 1,850,000 2.59
Chemicals 1,400,000 Ashland Oil Inc., 6.75% due 7/01/2014 1,379,000 1,428,000 2.00
Computer Services 500,000 Cray Research, Inc., 6.125% due 2/01/2011 510,000 397,500 0.56
Industrial 2,000,000 Rouse Co., 5.75% due 7/23/2002 1,699,000 1,910,000 2.67
Insurance 2,000,000 Aegon N.V., 4.75% due 11/01/2004 2,420,250 3,362,600 4.71
Machine Diversified 1,500,000 Cooper Industries, Inc.,
7.05% due 1/01/2015 1,538,750 1,605,000 2.25
Metals & Mining 1,000,000 USX Corp., 7% due 6/15/2017 913,500 957,500 1.34
Natural Gas 3,200,000 Consolidated Natural Gas Co.,
7.25% due 12/15/2015 3,243,250 3,312,000 4.64
Oil & Related 2,000,000 Pennzoil Co., 4.75% due 10/01/2003 1,904,250 2,130,000 2.98
Transportation 1,200,000 Alaska Air Group, Inc.,
6.50% due 6/15/2005 1,247,250 1,560,000 2.18
Total Investments in
United States Convertible Bonds 18,552,625 20,572,600 28.81
Total Investments in
North American Securities 34,505,975 36,305,402 50.85
PACIFIC Shares
BASIN Held Common Stocks
Hong Kong Utilities--Electric 70,000 Shandong Huaneng Power Company Ltd.
(ADR) (a) 704,200 647,500 0.91
Total Investments in
Hong Kong Common Stocks 704,200 647,500 0.91
<PAGE>
Japan Financial Services 10,000 Daiwa Securities Co., Ltd. 109,055 153,993 0.22
10,000 Nikko Securities Co., Ltd. 91,790 127,212 0.18
10,000 Yamaichi Securities Co., Ltd. 94,005 79,101 0.11
294,850 360,306 0.51
Machinery 20,000 Shimadzu Corp. 156,900 136,777 0.19
Trading 50,000 Marubeni Corp. 241,883 299,857 0.42
Total Investments in
Japanese Common Stocks 693,633 796,940 1.12
Face
Amount Convertible Bonds
Hong Kong Food & Beverage US$ 2,000,000 Dairy Farms International Holdings Ltd.,
6.50% due 5/10/2049 1,977,000 1,665,000 2.33
Real Estate 2,500,000 Wharf Capital Ltd., 5% due 7/15/2000 2,655,000 2,837,500 3.97
Total Investments in Hong Kong
Convertible Bonds 4,632,000 4,502,500 6.30
Japan Auto & Truck Yen 50,000,000 No. 2 Toyota Motor Corp.,
1.20% due 1/28/1998 572,731 589,192 0.83
Chemicals 100,000,000 No. 6 Sumitomo Chemical Co.,
1.20% due 9/29/2006 1,042,946 1,123,864 1.57
Electronics 40,000,000 No. 2 Kokusai Electric Co.,
1.30% due 9/30/2002 452,059 457,197 0.64
30,000,000 No. 3 Matsushita Electric Industrial Co.,
1.40% due 9/30/1996 362,443 358,680 0.50
50,000,000 No. 5 Matsushita Electric Industrial Co.,
1.30% due 3/29/2002 513,387 552,367 0.77
37,000,000 No. 6 Sanyo Electric Co., Ltd.,
1.70% due 11/29/2002 391,721 406,982 0.57
50,000,000 No. 11 Sharp Corp., 1.50% due 9/30/1998 551,096 569,106 0.80
50,000,000 No. 2 Tokyo Electron Limited,
.90% due 9/30/2003 572,581 549,498 0.77
----------- ----------- -------
2,843,287 2,893,830 4.05
Food & Beverage 100,000,000 No. 9 Asahi Breweries, Ltd.,
0.95% due 12/26/2002 1,114,675 1,028,216 1.44
50,000,000 No. 1 Sanyo Coca-Cola Bottling, Inc.,
0.90% due 6/30/2003 522,384 481,109 0.67
50,000,000 No. 3 Sapporo Breweries, Ltd.,
1.20% due 12/18/2009 525,379 505,500 0.71
----------- ----------- -------
2,162,438 2,014,825 2.82
<PAGE>
Industrial 70,000,000 No. 3 Sony Corp., 1.40% due 9/30/2003 832,971 849,641 1.19
Leisure 50,000,000 No. 5 Canon Co., 1% due 12/20/2002 639,008 676,710 0.95
Machinery 100,000,000 No. 8 Matsushita Electric Works, Ltd.,
2.70% due 5/31/2002 1,228,409 1,213,773 1.70
25,000,000 No. 8 NEC Corp., 1.70% due 3/31/1999 315,788 325,203 0.45
30,000,000 No. 2 Nippondenso Co., Ltd.,
1.20% due 12/26/1997 337,449 347,776 0.49
----------- ----------- -------
1,881,646 1,886,752 2.64
Retail Stores 50,000,000 No. 1 Taiyo Company Ltd.,
2.50% due 2/28/2002 594,601 497,370 0.70
Transportation 50,000,000 No. 6 Keihan Electric Railway Co., Ltd.,
1% due 3/31/2003 539,009 475,849 0.67
50,000,000 No. 1 Nankai Electric Railway Co., Ltd.,
2.70% due 3/30/2001 593,306 526,064 0.74
50,000,000 No. 6 Yamato Transport Co., Ltd.,
1.70% due 9/30/2002 539,151 565,280 0.79
----------- ----------- -------
1,671,466 1,567,193 2.20
Total Investments in
Japanese Convertible Bonds 12,241,094 12,099,377 16.95
Total Investments in
Pacific Basin Securities 18,270,927 18,046,317 25.28
WESTERN Shares
EUROPE Held Common Stocks
United Business Services 71,944 ++Cordiant PLC (Ordinary) 170,504 146,402 0.20
Kingdom
Total Investments in United Kingdom
Common Stocks 170,504 146,402 0.20
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN EUROPE Face Value Percent of
(concluded) Industries Amount Convertible Bonds Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
France Auto & Truck Ffr 10,000 Peugeot S.A., 2% due 1/01/2001 (Units) $ 1,851,331 $ 2,013,708 2.82%
Leisure 4,200,000 Euro Disney SCA, 6.75% due 10/01/2001 686,298 805,097 1.13
Pharmaceuticals 7,000 Sanofi S.A., 4% due 1/01/2000 (Units) 498,434 621,682 0.87
Total Investments in French
Convertible Bonds 3,036,063 3,440,487 4.82
<PAGE>
United Business Pound
Kingdom Services Sterling 1,000,000 Hanson Trust PLC, 9.50% due 1/31/2006 1,651,296 1,501,800 2.10
Food & Beverage 500,000 Allied-Lyons PLC, 6.75% due 7/07/2008 858,247 735,882 1.03
US$ 1,500,000 Grand Metropolitan PLC,
6.50% due 1/31/2000 1,612,500 1,653,000 2.32
Pound
Sterling 550,000 Northern Foods PLC, 6.75% due 8/08/2008 867,775 683,507 0.96
----------- ----------- -------
3,338,522 3,072,389 4.31
Total Investments in
United Kingdom Convertible Bonds 4,989,818 4,574,189 6.41
Total Investments in
Western European Securities 8,196,385 8,161,078 11.43
Short-Term Securities
United Commercial Paper* US$ 1,034,000 General Electric Capital Corp.,
States 5.35% due 5/01/1996 1,034,000 1,034,000 1.45
US Government & US Treasury Bills:
Agency Obligations* 2,500,000 5.08% due 5/09/1996 2,497,178 2,497,178 3.50
2,500,000 4.97% due 6/06/1996 2,487,575 2,487,575 3.48
2,000,000 4.88% due 6/20/1996 1,986,444 1,986,444 2.78
----------- ----------- -------
6,971,197 6,971,197 9.76
Total Investments in
Short-Term Securities 8,005,197 8,005,197 11.21
Total Investments $69,734,684 71,197,994 99.72
===========
Unrealized Depreciation on Forward Foreign Exchange Contracts** (87,048) (0.12)
Other Assets Less Liabilities 285,126 0.40
----------- -------
Net Assets $71,396,072 100.00%
=========== =======
<FN>
++Non-income producing security.
(a)American Depositary Receipts (ADR).
*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 April 30, 1996 are as follows:
<PAGE>
Unrealized
Depreciation
Foreign Currency Sold Expiration Date (Note 1c)
Yen 100,000,000 June 1996 $(32,477)
300,000,000 July 1996 (54,571)
Total Unrealized Depreciation--Net on Forward Foreign
Exchange Contracts (US$ Commitment--$3,771,892) $(87,048)
========
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of April 30, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$69,734,684) (Note 1a) $ 71,197,994
Cash 373
Foreign cash (Note 1b) 64
Receivables:
Interest $ 525,490
Capital shares sold 123,837
Forward foreign exchange contracts (Note 1c) 37,594
Dividends 11,368 698,289
-----------
Prepaid expenses (Note 1f) 30,798
------------
Total assets 71,927,518
------------
Liabilities: Unrealized depreciation on forward foreign exchange contracts (Note 1c) 87,048
Payables:
Capital shares redeemed 205,152
Distributor (Note 2) 41,977
Investment adviser (Note 2) 40,485 287,614
-----------
Accrued expenses and other liabilities 156,784
------------
Total liabilities 531,446
------------
<PAGE>
Net Assets: Net assets $ 71,396,072
============
Net Assets Class A Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized $ 161,784
Consist of: Class B Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized 392,966
Class C Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized 36,432
Class D Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized 83,879
Paid-in capital in excess of par 68,670,953
Accumulated investment loss--net (117,573)
Undistributed realized capital gains on investments and foreign currency
transactions--net 791,940
Unrealized appreciation on investments and foreign currency transactions--net 1,375,691
------------
Net assets $ 71,396,072
============
Net Asset Class A--Based on net assets of $17,034,854 and 1,617,844 shares outstanding $ 10.53
============
Value: Class B--Based on net assets of $41,664,912 and 3,929,659 shares outstanding $ 10.60
============
Class C--Based on net assets of $3,855,777 and 364,323 shares outstanding $ 10.58
============
Class D--Based on net assets of $8,840,529 and 838,790 shares outstanding $ 10.54
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1996
<S> <S> <C> <C>
Investment Interest and discount earned (net of $6,435 foreign withholding tax) $ 1,211,210
Income Dividends (net of $515 foreign withholding tax) 453,821
(Notes 1d & 1e): ------------
Total income 1,665,031
------------
Expenses: Account maintenance and distribution fees--Class B (Note 2) $ 236,037
Investment advisory fees (Note 2) 234,750
Transfer agent fees--Class B (Note 2) 122,401
Printing and shareholder reports 65,086
Professional fees 40,158
Transfer agent fees--Class A (Note 2) 38,562
Registration fees (Note 1f) 33,734
Accounting services (Note 2) 29,630
Directors' fees and expenses 25,882
Account maintenance and distribution fees--Class C (Note 2) 18,106
Custodian fees 15,322
Transfer agent fees--Class D (Note 2) 10,156
Transfer agent fees--Class C (Note 2) 9,757
Account maintenance fees--Class D (Note 2) 5,797
Pricing fees 2,965
Other 3,760
------------
Total expenses 892,103
------------
Investment income--net 772,928
------------
<PAGE>
Realized & Realized gain from:
Unrealized Gain Investments--net 501,905
(Loss) on Foreign currency transactions--net 290,039 791,944
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 4,044,600
(Notes 1b, 1c, Foreign currency transactions--net (279,826) 3,764,774
1e & 3): ------------ ------------
Net realized and unrealized gain on investments and foreign currency transactions 4,556,718
------------
Net Increase in Net Assets Resulting from Operations $ 5,329,646
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Year
Ended Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 772,928 $ 3,817,569
Realized gain on investments and foreign currency transactions--net 791,944 4,600,356
Change in unrealized appreciation/depreciation on investments and foreign currency
transactions--net 3,764,774 (1,186,046)
----------- -----------
Net increase in net assets resulting from operations 5,329,646 7,231,879
----------- -----------
Dividends & Investment income--net:
Distributions to Class A (459,363) (983,944)
Shareholders Class B (1,160,881) (2,414,489)
(Note 1g): Class C (80,885) (162,116)
Class D (120,617) (132,498)
Realized gain on investments--net:
Class A (820,273) (133,107)
Class B (2,671,664) (832,533)
Class C (180,592) (20,618)
Class D (171,093) (14,017)
----------- -----------
Net decrease in net assets resulting from dividends and distributions to
shareholders (5,665,368) (4,693,322)
----------- -----------
Capital Share Net increase (decrease) in net assets derived from capital share transactions (18,659,584) 26,499,640
Transactions ----------- -----------
(Note 4):
<PAGE>
Net Assets: Total increase (decrease) in net assets (18,995,306) 29,038,197
Beginning of period 90,391,378 61,353,181
----------- -----------
End of period* $71,396,072 $90,391,378
=========== ===========
<FN>
*Undistributed (accumulated) investment income (loss)--net $ (117,573) $ 931,245
=========== ===========
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
For the Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1996++++ 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.71 $ 10.75 $ 11.08 $ 9.79 $ 9.39
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .15 .42 .33 .23 .21
Realized and unrealized gain (loss) on investments and
foreign currency transactions--net .64 .11 (.27) 1.45 .68
--------- --------- --------- --------- ---------
Total from investment operations .79 .53 .06 1.68 .89
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.34) (.46) (.30) (.23) (.25)
Realized gain on investments--net (.63) (.11) (.09) (.16) (.24)
--------- --------- --------- --------- ---------
Total dividends and distributions (.97) (.57) (.39) (.39) (.49)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 10.53 $ 10.71 $ 10.75 $ 11.08 $ 9.79
========= ========= ========= ========= =========
Total Based on net asset value per share 7.79%+++ 5.10% 0.61% 17.64% 10.00%
Investment ========= ========= ========= ========= =========
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement 1.70%* 1.38% 1.66% 2.22% 2.47%
Average ========= ========= ========= ========= =========
Net Assets: Expenses 1.70%* 1.38% 1.66% 2.22% 2.86%
========= ========= ========= ========= =========
Investment income--net 2.91%* 4.03% 2.97% 2.36% 2.61%
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 17,035 $ 23,634 $ 7,850 $ 4,557 $ 2,283
Data: ========= ========= ========= ========= =========
Portfolio turnover 4.16% 101.12% 38.04% 26.02% 4.91%
========= ========= ========= ========= =========
Average commission rate paid+++++ $ .08 -- -- -- --
========= ========= ========= ========= =========
<CAPTION>
Class B
For the Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1996++++ 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.77 $ 10.80 $ 11.13 $ 9.84 $ 9.44
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .10 .37 .21 .13 .12
Realized and unrealized gain (loss) on investments and
foreign currency transactions--net .64 .05 (.25) 1.46 .67
--------- --------- --------- --------- ---------
Total from investment operations .74 .42 (.04) 1.59 .79
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.28) (.34) (.20) (.14) (.15)
Realized gain on investments--net (.63) (.11) (.09) (.16) (.24)
--------- --------- --------- --------- ---------
Total dividends and distributions (.91) (.45) (.29) (.30) (.39)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 10.60 $ 10.77 $ 10.80 $ 11.13 $ 9.84
========= ========= ========= ========= =========
Total Based on net asset value per share 7.18%+++ 4.01% (.37%) 16.45% 8.77%
Investment ========= ========= ========= ========= =========
Return:**
Ratios to Expenses, net of reimbursement 2.77%* 2.37% 2.69% 3.26% 3.49%
Average ========= ========= ========= ========= =========
Net Assets: Expenses 2.77%* 2.37% 2.69% 3.26% 3.96%
========= ========= ========= ========= =========
Investment income--net 1.83%* 2.95% 1.95% 1.32% 1.53%
========= ========= ========= ========= =========
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 41,665 $ 58,660 $ 53,121 $ 29,831 $ 13,975
Data: ========= ========= ========= ========= =========
Portfolio turnover 4.16% 101.12% 38.04% 26.02% 4.91%
========= ========= ========= ========= =========
Average commission rate paid+++++ $ .08 -- -- -- --
========= ========= ========= ========= =========
<CAPTION>
Class C Class D
For the For the For the For the
The following per share data and Six For the Period Six For the Period
ratios have been derived from information Months Year Oct. 21, Months Year Oct. 21,
provided in the financial statements. Ended Ended 1994++ to Ended Ended 1994++ to
April 30, Oct. 31, Oct. 31, April 30, Oct. 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1996++++ 1995 1994++++ 1996++++ 1995 1994++++
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.75 $ 10.81 $ 10.74 $ 10.72 $ 10.76 $ 10.69
Operating -------- -------- -------- -------- -------- --------
Performance: Investment income--net .09 .36 -- .14 .42 --
Realized and unrealized gain on
investments and foreign currency
transactions--net .64 .05 .07 .64 .09 .07
-------- -------- -------- -------- -------- --------
Total from investment operations .73 .41 .07 .78 .51 .07
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.27) (.36) -- (.33) (.44) --
Realized gain on investments--net (.63) (.11) -- (.63) (.11) --
-------- -------- -------- -------- -------- --------
Total dividends and distributions (.90) (.47) -- (.96) (.55) --
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 10.58 $ 10.75 $ 10.81 $ 10.54 $ 10.72 $ 10.76
======== ======== ======== ======== ======== ========
Total Based on net asset value per share 7.18%+++ 3.89% .65%+++ 7.66%+++ 4.87% .65%+++
Investment ======== ======== ======== ======== ======== ========
Return:**
Ratios to Expenses 2.78%* 2.41% 5.64%* 1.90%* 1.62% 5.13%*
Average ======== ======== ======== ======== ======== ========
Net Assets: Investment income (loss)--net 1.81%* 2.99% (1.74%)* 2.66%* 3.79% (1.24%)*
======== ======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 3,856 $ 4,598 $ 203 $ 8,840 $ 3,499 $ 179
Data: ======== ======== ======== ======== ======== ========
Portfolio turnover 4.16% 101.12% 38.04% 4.16% 101.12% 38.04%
======== ======== ======== ======== ======== ========
Average commission rate paid+++++ $ .08 -- -- $ .08 -- --
======== ======== ======== ======== ======== ========
<PAGE>
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
++++Based on average shares outstanding during the period.
+++Aggregate total investment return.
+++++For fiscal years beginning on or after September 1, 1995,
the Fund is required to disclose its average commission
rate per share for purchases and sales of equity securities.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Convertible Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. These unaudited
financial statements reflect all adjustments which are, in the opinion
of management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. The Fund offers four classes of shares under the
Merrill Lynch Select Pricing SM System. Shares of Class A and Class D
are sold with a front-end sales charge. Shares of Class B and Class C
may be subject to a contingent deferred sales charge. All classes of
shares have identical voting, dividend, liquidation and other rights
and the same terms and conditions, except that Class B, Class C and
Class D Shares bear certain expenses related to the account
maintenance of such shares, and Class B and Class C Shares also
bear certain expenses related to the distribution of such shares.
Each class has exclusive voting rights with respect to matters
relating to its account maintenance and distribution expenditures.
The following is a summary of significant accounting policies followed
by the Fund.
<PAGE>
(a) Valuation of investments--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at the
last available bid price. Securities traded in the over-the-counter
market are valued at the last available bid price prior to the time of
valuation. In cases where securities are traded on more than one
exchange, the securities are valued on the exchange designated
by or under the authority of the Board of Directors as the primary
market. Securities which are traded both in the over-the-counter
market and on a stock exchange are valued according to the broad-
est and most representative market. Options written are valued
at the last sale price in the case of exchange-traded options or,
in the case of options traded in the over-the-counter market, the
last asked price. Options purchased are valued at the last sale price
in the case of exchange-traded options or, in the case of options
traded in the over-the-counter market, the last bid price. Short-
term securities are valued at amortized cost, which approximates
market value. Other investments, including futures contracts and
related options, are stated at market value. Securities and assets
for which market value quotations are not available are valued at
their fair value as determined in good faith by or under the direction
of the Fund's Board of Directors.
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing
when recognized. Assets and liabilities denominated in foreign
currencies are valued at the exchange rate at the end of the period.
Foreign currency transactions are the result of settling (realized)
or valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(c) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the equity, debt and currency
markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on opera-
tions is recorded from the date the Fund enters into such contracts.
Premium or discount is amortized over the life of the contracts.
* Foreign currency options and futures--The Fund may also purchase
or sell listed or over-the-counter foreign currency options, foreign
currency futures and related options on foreign currency futures as
a short or long hedge against possible variations in foreign exchange
rates. Such transactions may be effected with respect to hedges on
non-US dollar denominated securities owned by the Fund, sold by
the Fund but not yet delivered, or committed or anticipated to be
purchased by the Fund.
<PAGE>
* Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures con-
tracts for the purpose of hedging the market risk on existing securi-
ties or the intended purchase of securities. Futures contracts are
contracts for delayed delivery of securities at a specific future date
and at a specific price or yield. Upon entering into a contract, the
Fund deposits and maintains as collateral such initial margin as
required by the exchange on which the transaction is effected.
Pursuant to the contract, the Fund agrees to receive from or pay
to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as
variation margin and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time
it was closed.
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written. When a security is purchased or sold through an exercise of
an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted
from (or added to) the proceeds of the security sold. When an
option expires (or the Fund enters into a closing transaction), the
Fund realized a gain or loss on the option to the extent of the
premiums received or paid (or gain or loss to the extent the cost
of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing
investments.
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required. Under the applicable foreign tax law, a
withholding tax may be imposed on interest, dividends, and capital
gains at various rates.
(e) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Dividend income is recorded on the ex-dividend
date, except that if the ex-dividend date has passed, certain divi-
dends from foreign securities are recorded as soon as the Fund is
informed of the ex-dividend date. Interest income (including amor-
tization of discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
<PAGE>
(f) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid
by the Fund are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM"). The general
partner of MLAM is Princeton Services, Inc. ("PSI"), an indirect
wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."),
which is the limited partner. The Fund has also entered into a
Distribution Agreement and Distribution Plans with Merrill Lynch
Funds Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
MLAM is responsible for the management of the Fund's portfolio
and provides the necessary personnel, facilities, equipment and
certain other services necessary to the operations of the Fund. For
such services, the Fund pays a monthly fee at the annual rate of 0.65%
of the average daily value of the Fund's net assets. Certain of the
states in which the shares of the Fund are qualified for sale impose
limitations on the expenses of the Fund. The most restrictive annual
expense limitation requires that MLAM reimburse the Fund to the
extent the Fund's expenses (excluding interest, taxes, distribution
fees, brokerage fees and commissions, and extraordinary items)
exceed 2.5% of the Fund's first $30 million of average daily net
assets, 2.0% of the Fund's next $70 million of average daily net
assets, and 1.5% of the average daily net assets in excess thereof.
MLAM's obligation to reimburse the Fund is limited to the amount
of the management fee.
No fee payment will be made to MLAM during any fiscal year that
will cause such expenses to exceed the most restrictive expense
limitation at the time of such payment.
Pursuant to the distribution plans (the "Distribution Plans") adopted
by the Fund in accordance with Rule 12b-1 under the Investment
Company Act of 1940, the Fund pays the Distributor ongoing account
maintenance and distribution fees. The fees are accrued daily and
paid monthly at annual rates based upon the average daily net
assets of the shares as follows:
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
<PAGE>
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to
the Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance
services to Class B, Class C and Class D shareholders. The ongoing
distribution fee compensates the Distributor and MLPF&S for
providing shareholder and distribution-related services to Class B
and Class C shareholders.
NOTES TO FINANCIAL STATEMENTS (concluded)
For the six months ended April 30, 1996, MLFD earned underwriting
discounts and MLPF&S earned dealer concessions on sales of the
Fund's Class A and Class D Shares as follows:
MLFD MLPF&S
Class A $ 78 $ 1,018
Class D $1,302 $14,733
For the six months ended April 30, 1996, MLPF&S received contingent
deferred sales charges of $56,917 and $1,467 relating to transactions
in Class B and Class C Shares, respectively.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLAM, PSI, MLPF&S, MLFDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1996 were $2,777,149 and
$25,399,607, respectively.
Net realized and unrealized gains (losses) as of April 30, 1996 were
as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 502,631 $ 1,463,310
Short-term investments (726) --
Foreign currency transactions (82,117) (571)
Forward foreign exchange contracts 372,156 (87,048)
---------- -----------
Total $ 791,944 $ 1,375,691
========== ===========
<PAGE>
As of April 30, 1996, net unrealized depreciation for Federal income
tax purposes aggregated $1,463,310, of which $3,852,842 related
to appreciated securities and $2,389,532 related to depreciated
securities. At April 30, 1996, the aggregate cost of investments for
Federal income tax purposes was $69,734,684.
4. Capital Share Transactions:
Net increase (decrease) in net assets derived from capital share
transactions were $(18,659,584) and $26,499,640 for the six months
ended April 30, 1996 and for the year ended October 31, 1995,
respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for Six Months Dollar
Ended April 30, 1996 Shares Amount
Shares sold 519,333 $ 5,452,015
Shares issued to shareholders in
reinvestment of dividends
and distributions 8,435 88,824
------------- ------------
Total issued 527,768 5,540,839
Shares redeemed (1,116,121) (12,178,506)
------------- ------------
Net decrease (588,353) $ (6,637,667)
============= ============
Class A Shares for the Year Dollar
Ended October 31, 1995 Shares Amount
Shares sold 4,429,386 $ 47,904,765
Shares issued to shareholders in
reinvestment of dividends
and distributions 91,827 983,674
------------- ------------
Total issued 4,521,213 48,888,439
Shares redeemed (3,044,979) (33,329,139)
------------- ------------
Net increase 1,476,234 $ 15,559,300
============= ============
<PAGE>
Class B Shares for the Six Months Dollar
Ended April 30, 1996 Shares Amount
Shares sold 859,766 $ 9,044,826
Shares issued to shareholders in
reinvestment of dividends
and distributions 9,220 97,829
------------- ------------
Total issued 868,986 9,142,655
Automatic conversion of shares (521,335) (5,459,249)
Shares redeemed (1,864,229) (20,269,202)
------------- ------------
Net decrease (1,516,578) $(16,585,796)
============= ============
Class B Shares for the Year Dollar
Ended October 31, 1995 Shares Amount
Shares sold 7,306,514 $ 77,802,488
Shares issued to shareholders in
reinvestment of dividends
and distributions 244,737 2,595,029
------------- ------------
Total issued 7,551,251 80,397,517
Automatic conversion of shares (159,520) (1,700,100)
Shares redeemed (6,861,967) (75,080,334)
------------- ------------
Net increase 529,764 $ 3,617,083
============= ============
Class C Shares for the Six Months Dollar
Ended April 30, 1996 Shares Amount
Shares sold 148,226 $ 1,567,940
Shares issued to shareholders in
reinvestment of dividends
and distributions 945 10,002
------------- ------------
Total issued 149,171 1,577,942
Shares redeemed (212,586) (2,316,112)
------------- ------------
Net decrease (63,415) $ (738,170)
============= ============
<PAGE>
Class C Shares for the Year Dollar
Ended October 31, 1995 Shares Amount
Shares sold 1,012,755 $ 10,768,784
Shares issued to shareholders in
reinvestment of dividends
and distributions 13,905 149,071
------------- ------------
Total issued 1,026,660 10,917,855
Shares redeemed (617,701) (6,780,755)
------------- ------------
Net increase 408,959 $ 4,137,100
============= ============
Class D Shares for the Six Months Dollar
Ended April 30, 1996 Shares Amount
Shares sold 207,226 $ 2,227,540
Automatic conversion of shares 523,906 5,459,249
Shares issued to shareholders in
reinvestment of dividends
and distributions 3,101 32,683
------------- ------------
Total issued 734,233 7,719,472
Shares redeemed (221,808) (2,417,423)
------------- ------------
Net increase 512,425 $ 5,302,049
============= ============
Class D Shares for the Year Dollar
Ended October 31, 1995 Shares Amount
Shares sold 593,147 $ 6,348,782
Automatic conversion of shares 160,026 1,700,100
Shares issued to shareholders in
reinvestment of dividends
and distributions 10,076 107,975
------------- ------------
Total issued 763,249 8,156,857
Shares redeemed (453,469) (4,970,700)
------------- ------------
Net increase 309,780 $ 3,186,157
============= ============
