MERRILL LYNCH
GLOBAL
CONVERTIBLE
FUND, INC.
FUND LOGO
Quarterly Report
July 31, 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
<PAGE>
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
TO OUR SHAREHOLDERS
During July there was a sharp sell off of major US equity markets,
followed by a good recovery trend in late July into early August.
For example, the Dow Jones Industrial Average reached an all time
high of 5,778 on May 22, 1996, then fell to 5,346 on July 23, closed
July at 5,528 then reached 5,679 in early August. Most of the
volatility has been caused by investor nervousness about the
economic outlook, the direction of interest rates, and concerns
about corporate earnings reports. Late in July, there were favorable
comments from US Government officials that unemployment was creeping
higher, manufacturing was slowing and consumers were spending less,
reassuring investors that the Federal Reserve Board would not raise
interest rates in August.
Most world markets had sharp setbacks in July, led by the
Netherlands, Switzerland, Sweden, France and Italy, all with losses
ranging from 7% to 10%. In Asia, Japan and Hong Kong also moved
lower from recent strong levels. However, as in the United States,
there were recovery trends in these markets in early August.
The US dollar slid lower during July mostly because of the erratic
stock markets. However, a recovery trend was underway in early
August. It is possible that the year-old rally in the US dollar
could continue as the underlying fundamentals appear positive.
Obviously, with the severe market actions we saw recently, there is
some degree of investor uncertainty as we await political, economic
and fiscal developments in upcoming weeks. We believe that the
economy will slow as the year progresses leading to stable or lower
interest rates and both bond and equity markets will calm down,
which might lead to higher levels in upcoming months.
<PAGE>
Portfolio Strategy
During the quarter ended July 31, 1996, our asset allocation was
rather stable with little overall change. Our major holdings (almost
52% of net assets) remained in the United States where equity and
convertible markets continued to perform well. Offshore, our
Japanese allocation of 18.63% of net assets was stable, but
performance eased recently with the equity market sell off. European
markets had positive gains in the July quarter, although they were
off their highs. Our cash position at July 31, 1996 was almost 9.50%
compared to 11% at April 30, 1996, still reflecting a degree of
caution and prudence. Our net assets changed very little over the
quarter ended July 31, 1996, totaling close to $68 million.
It is certainly a time for the utmost caution with the volatility,
uncertainty and sudden market swings. Nevertheless, we remain
optimistic that both bond and equity markets worldwide may be
favorable for Merrill Lynch Global Convertible Fund, Inc. as the
year progresses.
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
August 27, 1996
<PAGE>
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:
* 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. (There is no initial
sales charge for automatic share conversions.)
* 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**
<PAGE>
Class A Shares*
Year Ended 6/30/96 +8.73% +3.02%
Five Years Ended 6/30/96 +9.74 +8.57
Inception (11/4/88) through 6/30/96 +7.30 +6.55
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/96 +7.59% +3.70%
Five Years Ended 6/30/96 +8.59 +8.59
Inception (2/26/88) through 6/30/96 +5.94 +5.94
[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 6/30/96 +7.58% +6.61%
Inception (10/21/94) through 6/30/96 +7.26 +7.26
[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 6/30/96 +8.45% +2.75%
Inception (10/21/94) through 6/30/96 +8.21 +4.82
[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**
<S> <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--7/31/96 10.27 10.25 -- 0.142 + 1.15
------ ------
Total $1.035 Total $3.783
Cumulative total return as of 7/31/96: +67.29%**
<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 any 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**
<S> <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--7/31/96 10.35 10.32 -- 0.084 + 0.50
------ ------
Total $1.035 Total $3.175
Cumulative total return as of 7/31/96: +57.63%**
<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**
<S> <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--7/31/96 10.34 10.30 -- 0.089 + 0.45
------ ------
Total $0.029 Total $1.397
Cumulative total return as of 7/31/96: +9.65%**
<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**
<S> <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--7/31/96 10.29 10.26 -- 0.132 + 0.96
------ ------
Total $0.029 Total $1.554
Cumulative total return as of 7/31/96: +11.40%**
<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
<CAPTION>
12 Month 3 Month
7/31/96 4/30/96 7/31/95 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Convertible Fund, Inc. Class A Shares* $10.25 $10.53 $11.06 - 7.32% -2.66%
ML Global Convertible Fund, Inc. Class B Shares* 10.32 10.60 11.10 - 7.03 -2.64
ML Global Convertible Fund, Inc. Class C Shares* 10.30 10.58 11.08 - 7.04 -2.65
ML Global Convertible Fund, Inc. Class D Shares* 10.26 10.54 11.06 - 7.23 -2.66
ML Global Convertible Fund, Inc. Class A Shares--Total Return* + 4.37(1) -1.92(2)
ML Global Convertible Fund, Inc. Class B Shares--Total Return* + 3.29(3) -2.16(4)
ML Global Convertible Fund, Inc. Class C Shares--Total Return* + 3.25(5) -2.16(4)
ML Global Convertible Fund, Inc. Class D Shares--Total Return* + 4.19(6) -1.98(7)
Dow Jones Industrial Average** 5,528.91 5,569.08 4,708.47 +17.42 -0.72
S&P 500 Index** 639.95 654.17 562.06 +13.86 -2.17
Japan Nikkei Dow Jones 225** 20,692.83 22,041.30 16,677.53 +24.08 -6.12
London Financial Times Index** 3,703.20 3,817.90 3,463.30 + 6.93 -3.00
<FN>
*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 $1.263 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.080 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $1.125 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.052 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $1.119 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $1.236 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.074 per share ordinary
income dividends.
</TABLE>
<PAGE>
<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.
Communications de C.V. (TELMEX)(ADR)(a) $ 756,200 $ 612,500 0.90%
Total Investments in Latin
American Securities 756,200 612,500 0.90
NORTH
AMERICA
United Food/Beverage/ 30,531 ConAgra Inc. 998,025 1,297,568 1.91
States Tobacco & Household
Metals & Mining 10,000 WHX Corp. 179,350 96,250 0.14
Retail Stores 70,741 Home Depot, Inc. 3,249,362 3,572,421 5.26
Total Investments in United States
Common Stocks 4,426,737 4,966,239 7.31
Convertible Preferred Stocks
Canada Oil & Gas Producers 25,000 Occidental Petroleum Corp., Pfd.,
Series A 1,371,600 1,478,125 2.17
Total Investments in Canadian
Convertible Preferred Stocks 1,371,600 1,478,125 2.17
United Data Processing 20,000 UNISYS Corp., $3.75 Pfd., Series A 1,233,875 587,500 0.86
States
Insurance 25,000 American General Corp., Pfd. 1,306,729 1,250,000 1.84
25,000 St. Paul Companies, Inc., Pfd. 1,307,892 1,296,875 1.91
------------ ------------ -------
2,614,621 2,546,875 3.75
Metals & Mining 50,000 USX Corp., $3.25 Pfd. 2,413,750 2,143,750 3.15
35,500 WHX Corp., Pfd. 1,630,980 1,468,812 2.16
20,000 WHX Corp., Pfd., Series B 1,000,150 827,500 1.22
------------ ------------ -------
5,044,880 4,440,062 6.53
Real Estate 50,000 Merry Land & Investment Company,
Investment Trust Inc., Pfd. 1,261,637 1,331,250 1.96
Total Investments in United States
Convertible Preferred Stocks 10,155,013 8,905,687 13.10
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Face Percent of
(concluded) Industries Amount Convertible Bonds Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Automobile US$ 2,000,000 The Pep Boys--Manny, Moe & Jack,
States Parts 4% due 9/01/1999 $ 1,931,875 $ 1,980,000 2.91%
Building & 2,000,000 Masco Corp., 5.25% due 2/15/2012 1,765,500 1,790,000 2.63
Construction
Chemicals 1,400,000 Ashland Oil Inc., 6.75% due
7/01/2014 1,379,000 1,396,500 2.05
Computer Services 500,000 Cray Research, Inc., 6.125% due
2/01/2011 510,000 381,250 0.56
Industrial 2,000,000 Rouse Co., 5.75% due 7/23/2002 1,699,000 1,950,000 2.87
Insurance 2,000,000 Aegon N.V., 4.75% due 11/01/2004 2,420,250 3,290,000 4.84
Machine Diversified 1,500,000 Cooper Industries, Inc., 7.05% due
1/01/2015 1,538,750 1,575,000 2.32
Metals & Mining 1,000,000 USX Corp., 7% due 6/15/2017 913,500 930,000 1.37
Natural Gas 3,200,000 Consolidated Natural Gas Co.,
7.25% due 12/15/2015 3,243,250 3,368,000 4.95
Oil & Related 2,000,000 Pennzoil Co., 4.75% due 10/01/2003 1,904,250 1,940,000 2.85
Pharmaceuticals 1,500,000 Alza Corp., 5% due 5/01/2006 1,503,750 1,391,250 2.05
Transportation 1,200,000 Alaska Air Group, Inc., 6.50% due
6/15/2005 1,247,250 1,467,000 2.16
Total Investments in United States
Convertible Bonds 20,056,375 21,459,000 31.56
Total Investments in North American
Securities 36,009,725 36,809,051 54.14
<PAGE>
PACIFIC Shares
BASIN Held Common Stocks
Hong Kong Utilities--Electric 70,000 Shandong Huaneng Power Company Ltd.
(ADR)(a) 704,200 586,250 0.86
Total Investments in Hong Kong
Common Stocks 704,200 586,250 0.86
Japan Financial Services 10,000 Daiwa Securities Co., Ltd. 109,055 120,730 0.18
10,000 Nikko Securities Co., Ltd. 91,790 101,076 0.15
10,000 Yamaichi Securities Co., Ltd. 94,005 65,419 0.09
------------ ------------ -------
294,850 287,225 0.42
Machinery 20,000 Shimadzu Corp. 156,900 126,345 0.19
Trading 50,000 Marubeni Corp. 241,883 265,325 0.39
Total Investments in Japanese
Common Stocks 693,633 678,895 1.00
Face
Amount Convertible Bonds
Hong Kong Food & US$ 2,000,000 Dairy Farms International Holdings
Beverage Ltd., 6.50% due 5/10/2049 1,977,000 1,420,000 2.09
Real Estate 2,500,000 Wharf Capital Ltd., 5% due 7/15/2000 2,655,000 2,680,000 3.94
Total Investments in Hong Kong
Convertible Bonds 4,632,000 4,100,000 6.03
Japan Auto & Truck YEN 50,000,000 No. 2 Toyota Motor Corp., 1.20% due
1/28/1998 572,731 634,066 0.93
Chemicals 100,000,000 No. 6 Sumitomo Chemical Co., 1.20%
due 9/29/2006 1,042,946 1,017,314 1.50
Electronics 40,000,000 No. 2 Kokusai Electric Co., 1.30%
due 9/30/2002 452,059 404,305 0.59
30,000,000 No. 3 Matsushita Electric Industrial
Co., 1.40% due 9/30/1996 362,443 354,048 0.52
50,000,000 No. 5 Matsushita Electric Industrial
Co., 1.30% due 3/29/2002 513,387 547,496 0.81
37,000,000 No. 6 Sanyo Electric Co., Ltd., 1.70%
due 11/29/2002 391,721 373,982 0.55
50,000,000 No. 11 Sharp Corp., 1.50% due 9/30/1998 551,096 538,138 0.79
50,000,000 No. 2 Tokyo Electron Ltd., 0.90% due
9/30/2003 572,581 481,984 0.71
------------ ------------ -------
2,843,287 2,699,953 3.97
<PAGE>
Food & Beverage 100,000,000 No. 9 Asahi Breweries, Ltd., 0.95%
due 12/26/2002 1,114,675 982,686 1.45
50,000,000 No. 1 Sanyo Coca-Cola Bottling, Inc.,
0.90% due 6/30/2003 522,384 472,157 0.69
50,000,000 No. 3 Sapporo Breweries, Ltd., 1.20%
due 12/18/2009 525,379 486,664 0.72
------------ ------------ -------
2,162,438 1,941,507 2.86
Industrial 70,000,000 No. 3 Sony Corp., 1.40% due 9/30/2003 832,971 824,801 1.21
50,000,000 No. 5 Sony Corp., 0.15% due 3/30/2001 498,392 498,362 0.73
------------ ------------ -------
1,331,363 1,323,163 1.94
Leisure 50,000,000 No. 5 Canon Co., 1% due 12/20/2002 639,008 663,547 0.98
Machinery 100,000,000 No. 8 Matsushita Electric Works,
Ltd., 2.70% due 5/31/2002 1,228,409 1,111,839 1.63
25,000,000 No. 8 NEC Corp., 1.70% due 3/31/1999 315,788 273,748 0.40
30,000,000 No. 2 Nippondenso Co., Ltd., 1.20%
due 12/26/1997 337,449 336,921 0.50
------------ ------------ -------
1,881,646 1,722,508 2.53
Retail Stores 50,000,000 No. 1 Taiyo Company Ltd., 2.50%
due 2/28/2002 594,601 485,728 0.71
Transportation 50,000,000 No. 6 Keihan Electric Railway Co.,
Ltd., 1% due 3/31/2003 539,009 451,100 0.66
50,000,000 No. 1 Nankai Electric Railway Co.,
Ltd., 2.70% due 3/30/2001 593,306 502,106 0.74
50,000,000 No. 6 Yamato Transport Co., Ltd.,
1.70% due 9/30/2002 539,151 547,496 0.81
------------ ------------ -------
1,671,466 1,500,702 2.21
Total Investments in Japanese
Convertible Bonds 12,739,486 11,988,488 17.63
Total Investments in Pacific Basin
Securities 18,769,319 17,353,633 25.52
WESTERN Shares
EUROPE Held Common Stocks
United Business Services 71,944 Cordiant PLC (Ordinary) 170,504 121,918 0.18
Total Investments in United Kingdom
Common Stocks 170,504 121,918 0.18
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
<PAGE>
WESTERN EUROPE Face Percent of
(concluded) Industries Amount Convertible Bonds Cost Value 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 $ 2,087,044 3.07%
Leisure 4,200,000 Euro Disney SCA, 6.75% due 10/01/2001 686,298 873,437 1.29
Pharmaceuticals 7,000 Sanofi S.A., 4% due 1/01/2000 (Units) 498,434 620,510 0.91
Total Investments in French
Convertible Bonds 3,036,063 3,580,991 5.27
United Food & Pound 500,000 Allied-Lyons PLC, 6.75% due 7/07/2008 858,247 726,822 1.07
Kingdom Beverage Sterling
US$ 1,500,000 Grand Metropolitan PLC, 6.50% due
1/31/2000 1,612,500 1,638,000 2.41
Pound 550,000 Northern Foods PLC, 6.75% due 8/08/2008 867,775 737,511 1.08
Sterling
Total Investments in United Kingdom
Convertible Bonds 3,338,522 3,102,333 4.56
Total Investments in Western European
Securities 6,545,089 6,805,242 10.01
Short-Term Securities
United Commercial Paper* US$ 2,859,000 Ford Motor Credit Co., 5.72% due
States 8/01/1996 2,859,000 2,859,000 4.20
US Government & US Treasury Bills:
Agency Obligations* 1,500,000 4.93% due 8/01/1996 1,500,000 1,500,000 2.21
2,000,000 4.85% due 8/22/1996 1,994,342 1,994,342 2.93
------------ ------------ -------
3,494,342 3,494,342 5.14
Total Investments in Short-Term
Securities 6,353,342 6,353,342 9.34
Total Investments $ 68,433,675 67,933,768 99.91
============
Unrealized Depreciation on Forward Foreign Exchange Contracts** (91,013) (0.13)
Other Assets Less Liabilities 148,883 0.22
------------ -------
Net Assets $ 67,991,638 100.00%
============ =======
Net Asset Class A--Based on net assets of $16,904,356 and 1,649,386
Value: shares outstanding. $ 10.25
============
Class B--Based on net assets of $38,933,694 and 3,772,369
shares outstanding. $ 10.32
============
Class C--Based on net assets of $3,795,294 and 368,448
shares outstanding. $ 10.30
============
Class D--Based on net assets of $8,358,294 and 814,738
shares outstanding. $ 10.26
============
<PAGE>
<FN>
(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 July 31, 1996 were as
follows:
Unrealized
Foreign Currency Sold Expiration Date Depreciation
YEN 100,000,000 September 1996 $(11,098)
300,000,000 October 1996 (79,915)
Total Unrealized Depreciation--Net on Forward Foreign
Exchange Contracts (US$ Commitment--$3,686,992) $(91,013)
========
</TABLE>
