MERRILL LYNCH
GLOBAL
CONVERTIBLE
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1997
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
Printed on post-consumer recycled paper
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
Joseph T. Monagle Jr., Senior Vice President
Donald C. Burke, Vice President
Harry E. Dewdney, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
<PAGE>
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
TO OUR SHAREHOLDERS
The Dow Jones Industrial Average (DJIA) closed at 7,008.99 on April
30, 1997, reflecting a year-to-date gain of 8.8%. However, during
this time we have witnessed extreme volatility, erratic behavior and
surges up as well as down in both stock and bond markets in the
United States. The DJIA fell almost 10% during March and April after
reaching a new high of 7,085 on March 11. Then, on April 29, the
DJIA rocketed upward with a gain of 179 points, again coming close
to the all-time high of 7,085. This large gain for 1997-to-date
contrasts sharply with some other equity averages such as the NASDAQ
COMB Composite Index which was down 2.35% for the same period. All
in all, we have experienced a rather perplexing pattern of
performance. The US bond market was also erratic, with yields moving
up and down almost on a daily basis based on economic and financial
news.
The reason for this turmoil is primarily over investor concerns
regarding the direction of the economy, interest rates, inflation
and, to some extent, the strength of the US dollar. On the economic
front, indications have been that the economy had cooled a bit and
that there did not appear to be signs of overheating. However, the
gross domestic product's rise of 5.6% in the first quarter of 1997
was well above most forecasts of 4%. The consensus of economists is
that this gain will not continue in the foreseeable future. In
addition, the move by the Federal Open Market Committee on March 25,
1997 to raise interest rates 0.25%, while expected by many, caused a
sell off in both equity and bond markets. On the inflation front,
there still appears to be little cause for concern, as first-
quarter wage inflation appeared to be benign. The US dollar is still
rather strong but there are signs that the Group of Seven
Industrialized Nations feel that the dollar has risen enough,
especially against the Japanese yen. It remains to be seen whether
intervention will eventually be used to cool the dollar's strength.
<PAGE>
In Europe, most equity markets were very firm, some showing better
returns than in the United States. However, in dollar terms, much of
the strength disappears. For example, while the French CAC 40 Index
was up 13.98% in local terms, the US dollar basis return was only
+1.42% year-to-date. These markets generally appear to be in quiet
trading ranges at present.
In Asia, the Japanese equity market finally showed some improvement
with the Nikkei 225 Index down only 1% after being sharply lower
earlier in the year. Other markets have been mixed with the
Singapore market, among others, sharply lower.
During the six months ended April 30, 1997, convertible bonds in
general have been mixed with US issues, especially small-capitaliz-
ation and NASDAQ company issues, generally lower. European
convertibles have fared little better, and Japanese issues have been
mixed, with certain stocks such as Sony Corp. and Toyota Motor Corp.
showing good strength.
For the calendar year-to-date period ended April 30, 1997, the
Fund's Class A, Class B, Class C and Class D Shares had total
returns of +3.71%, +3.34%, +3.36% and +3.64%, respectively. This
compares favorably not only with the Lipper Overseas Fund Average of
+0.03% but also with the Domestic Lipper Convertible Securities Fund
Average of +2.07% for the same period.
In our opinion, worldwide conditions in coming weeks will continue
to be volatile with both equity and bond markets rather erratic.
However, we believe that the climate for our Fund will be favorable
and that there will be opportunities for satisfactory total returns.
Global convertible issues should offer good upside potential during
firm equity and bond markets, yet offer a degree of protection when
market conditions become adverse.
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
May 30, 1997
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).
<PAGE>
None of the past results shown should be considered a representation
of future performance. Figures shown in the "Average Annual Total
Return" tables as well as the total returns and cumulative total
returns in the "Performance Summary" tables assume reinvestment of
all dividends and capital gains distributions at net asset value on
the ex-dividend date. 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)
<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
1996 10.27 10.54 0.190 0.388 + 8.40
1/1/97--4/30/97 10.54 10.83 -- 0.099 + 3.71
------ ------
Total $1.225 Total $4.128
Cumulative total return as of 4/30/97:+85.93%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not include any sales charge; results would be lower if
sales charge was included.
</TABLE>
<PAGE>
<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
1996 10.35 10.63 0.190 0.272 + 7.26
1/1/97--4/30/97 10.63 10.92 -- 0.064 + 3.34
------ ------
Total $1.225 Total $3.427
Cumulative total return as of 4/30/97:+73.85%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures 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
1996 10.34 10.60 0.190 0.277 + 7.12
1/1/97--4/30/97 10.60 10.90 -- 0.055 + 3.36
------ ------
Total $0.219 Total $1.640
Cumulative total return as of 4/30/97:+20.87%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not reflect deduction of any sales charge; results
would be lower if sales charge was deducted.
</TABLE>
<PAGE>
<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
1996 10.29 10.55 0.190 0.365 + 8.04
1/1/97--4/30/97 10.55 10.84 -- 0.092 + 3.64
------ ------
Total $0.219 Total $1.879
Cumulative total return as of 4/30/97:+23.56%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not include sales charge; results would be lower if
sales charge was included.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/97 +7.63% +1.98%
Five Years Ended 3/31/97 +8.89 +7.72
Inception (11/4/88) through 3/31/97 +7.43 +6.75
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/97 +6.41% +2.41%
Five Years Ended 3/31/97 +7.75 +7.75
Inception (2/26/88) through 3/31/97 +6.07 +6.07
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/97 +6.47% +5.47%
Inception (10/21/94) through 3/31/97 +7.36 +7.36
[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 3/31/97 +7.28% +1.65%
Inception (10/21/94) through 3/31/97 +8.26 +5.89
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
4/30/97 1/31/97 4/30/96 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Convertible Fund, Inc. Class A Shares* $10.83 $10.62 $10.53 + 4.73%(1) +1.98%
ML Global Convertible Fund, Inc. Class B Shares* 10.92 10.70 10.60 + 4.89(1) +2.06
ML Global Convertible Fund, Inc. Class C Shares* 10.90 10.68 10.58 + 4.90(1) +2.06
ML Global Convertible Fund, Inc. Class D Shares* 10.84 10.63 10.54 + 4.73(1) +1.98
Dow Jones Industrial Average** 7,008.99 6,813.09 5,569.08 +25.86 +2.88
S&P 500 Index** 801.34 786.16 654.17 +22.50 +1.93
Japan Nikkei Dow Jones 225** 19,151.12 18,330.01 22,041.30 -13.11 +4.48
London Financial Times Index** 4,436.00 4,275.80 3,817.90 +16.19 +3.75
ML Global Convertible Fund, Inc. Class A Shares--Total Return* + 9.01(2) +2.93(3)
ML Global Convertible Fund, Inc. Class B Shares--Total Return* + 7.90(4) +2.67(5)
ML Global Convertible Fund, Inc. Class C Shares--Total Return* + 7.84(6) +2.59(7)
ML Global Convertible Fund, Inc. Class D Shares--Total Return* + 8.72(8) +2.86(9)
Dow Jones Industrial Average--Total Return** +28.60 +3.36
S&P 500 Index--Total Return** +25.09 +2.38
<PAGE>
<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 $0.190 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.426 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.099 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.304 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.064 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.296 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(7)Percent change includes reinvestment of $0.055 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.399 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(9)Percent change includes reinvestment of $0.092 per share ordinary
income dividends.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
NORTH Shares Value Percent of
AMERICA Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Food/Beverage/ 10,000 ConAgra Inc. $ 309,079 $ 576,250 1.24%
Tobacco &
Household
Machine Diversified 16,040 Cooper Industries, Inc. 677,782 737,840 1.58
Metals & Mining 10,000 ++WHX Corp. 179,350 57,500 0.12
Retail Stores 15,000 Home Depot, Inc. 707,041 870,000 1.87
Total Investments in United
States Common Stocks 1,873,252 2,241,590 4.81
Convertible Preferred Stocks
<PAGE>
Canada Oil & Gas 15,000 Occidental Petroleum Corp.,
Producers Pfd., Series A 870,900 1,065,000 2.29
Total Investments in Canadian
Convertible Preferred Stocks 870,900 1,065,000 2.29
United States Data Processing 20,000 UNISYS Corp., $3.75 Pfd.,
Series A 1,233,875 715,000 1.53
Insurance 25,000 American General Corp., Pfd. 1,306,729 1,459,375 3.13
15,000 St. Paul Companies, Inc., Pfd. 784,736 922,500 1.98
------------ ------------ -------
2,091,465 2,381,875 5.11
Metals & Mining 50,000 USX Corp., $3.25 Pfd. 2,413,750 2,193,750 4.71
20,500 WHX Corp., Pfd. 923,730 668,812 1.44
20,000 WHX Corp., Pfd., Series B 1,000,150 660,000 1.42
------------ ------------ -------
4,337,630 3,522,562 7.57
Real Estate 40,000 Merry Land & Investment Company,
Investment Trust Inc., Pfd. 1,011,637 1,065,000 2.29
Total Investments in United
States Convertible Preferred
Stocks 8,674,607 7,684,437 16.50
Face
Amount Convertible Bonds
United States Automobile US$ 1,500,000 The Pep Boys--Manny, Moe & Jack,
Parts 4% due 9/01/1999 1,461,250 1,533,750 3.29
Building & 800,000 Masco Corp., 5.25% due 2/15/2012 688,000 820,000 1.76
Construction
Chemicals 1,200,000 Ashland Oil Inc., 6.75% due
7/01/2014 1,242,000 1,236,000 2.65
Computer 500,000 Cray Research, Inc., 6.125% due
Services 2/01/2011 510,000 371,875 0.80
Industrial 1,500,000 Rouse Co., 5.75% due 7/23/2002 1,289,700 1,500,000 3.22
Insurance 1,000,000 Aegon N.V., 4.75% due 11/01/2004 1,253,750 2,510,000 5.39
Machine 424,000 Cooper Industries, Inc., 7.05% due
Diversified 1/01/2015 432,480 470,640 1.01
<PAGE>
Natural Gas 1,500,000 Consolidated Natural Gas Co.,
7.25% due 12/15/2015 1,561,250 1,575,000 3.38
Oil & Related 1,500,000 Pennzoil Co., 4.75% due 10/01/2003 1,684,250 1,743,750 3.74
Pharmaceuticals 1,300,000 Alza Corp., 5% due 5/01/2006 1,264,250 1,295,125 2.78
Retail Stores 2,000,000 Home Depot, Inc., 3.25% due
10/01/2001 2,054,375 2,040,000 4.38
Transportation 900,000 Alaska Air Group, Inc., 6.50%
due 6/15/2005 936,750 1,112,625 2.39
Total Investments in United
States Convertible Bonds 14,378,055 16,208,765 34.79
Total Investments in North
American Securities 25,796,814 27,199,792 58.39
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
PACIFIC Shares Value Percent of
BASIN Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Hong Kong Utilities--Electric 70,000 Shandong Huaneng Power Company
Ltd. (ADR) (a) $ 704,200 $ 813,750 1.75%
Total Investments in Hong Kong
Common Stocks 704,200 813,750 1.75
Japan Financial Services 10,000 Daiwa Securities Co., Ltd. 109,055 66,604 0.14
10,000 Nikko Securities Co., Ltd. 91,790 55,805 0.12
10,000 Yamaichi Securities Co., Ltd. 94,005 26,169 0.06
------------ ------------ -------
294,850 148,578 0.32
Machinery 20,000 Shimadzu Corp. 156,900 95,373 0.20
Trading 50,000 Marubeni Corp. 241,883 185,623 0.40
Total Investments in Japanese
Common Stocks 693,633 429,574 0.92
Face
Amount Convertible Bonds
<PAGE>
Hong Kong Food & US$ 2,000,000 Dairy Farms International Holdings
Beverage Ltd., 6.50% due 5/10/2049 1,977,000 1,540,000 3.30
Total Investments in Hong Kong
Convertible Bonds 1,977,000 1,540,000 3.30
Japan Auto & YEN 25,000,000 No. 2 Toyota Motor Corp., 1.20%
Truck due 1/28/1998 286,365 374,399 0.80
Chemicals 50,000,000 No. 6 Sumitomo Bakelite Co., Ltd.,
1.20% due 9/29/2006 521,478 470,955 1.01
Electronics 40,000,000 No. 2 Kokusai Electric Co., 1.30%
due 9/30/2002 452,059 341,767 0.73
50,000,000 No. 5 Matsushita Electric
Industrial Co., 1.30% due
3/29/2002 513,387 496,571 1.07
37,000,000 No. 6 Sanyo Electric Co., Ltd.,
1.70% due 11/29/2002 391,721 292,220 0.63
50,000,000 No. 11 Sharp Corp., 1.50% due
9/30/1998 551,096 443,367 0.95
50,000,000 No. 2 Tokyo Electron Ltd., 0.90%
due 9/30/2003 572,581 610,862 1.31
------------ ------------ -------
2,480,844 2,184,787 4.69
Food & Beverage 50,000,000 No. 9 Asahi Breweries, Ltd.,
0.95% due 12/26/2002 557,338 476,472 1.02
50,000,000 No. 1 Sanyo Coca-Cola Bottling,
Inc., 0.90% due 6/30/2003 522,384 391,345 0.84
50,000,000 No. 3 Sapporo Breweries, Ltd.,
1.20% due 12/18/2009 525,379 386,222 0.83
------------ ------------ -------
1,605,101 1,254,039 2.69
Industrial 70,000,000 No. 3 Sony Corp., 1.40% due
9/30/2003 832,971 940,175 2.02
Leisure 50,000,000 No. 5 Canon Co., 1% due 12/20/2002 639,008 768,897 1.65
Machinery 100,000,000 No. 8 Matsushita Electric Works,
Ltd., 2.70% due 5/31/2002 1,228,409 1,079,846 2.32
25,000,000 No. 8 NEC Corp., 1.70% due
3/31/1999 315,788 314,298 0.67
------------ ------------ -------
1,544,197 1,394,144 2.99
Retail Stores 50,000,000 No. 1 Taiyo Company Ltd., 2.50%
due 2/28/2002 594,601 388,587 0.84
<PAGE>
Transportation 50,000,000 No. 6 Keihan Electric Railway Co.,
Ltd., 1% due 3/31/2003 539,009 354,694 0.76
50,000,000 No. 1 Nankai Electric Railway Co.,
Ltd., 2.70% due 3/30/2001 593,306 404,745 0.87
50,000,000 No. 6 Yamato Transport Co., Ltd.,
1.70% due 9/30/2002 539,151 472,925 1.02
------------ ------------ -------
1,671,466 1,232,364 2.65
Total Investments in Japanese
Convertible Bonds 10,176,031 9,008,347 19.34
Total Investments in Pacific
Basin Securities 13,550,864 11,791,671 25.31
WESTERN Shares
EUROPE Held Common Stocks
United Kingdom Business Services 71,944 Cordiant PLC (Ordinary) 170,504 150,720 0.32
Total Investments in United
Kingdom Common Stocks 170,504 150,720 0.32
Face
Amount Convertible Bonds
France Leisure Frf 4,200,000 Euro Disney SCA, 6.75% due
10/01/2001 686,298 789,000 1.69
Pharmaceuticals 7,000 Sanofi S.A., 4% due 1/01/2000
(Units) 498,434 710,015 1.53
Total Investments in French
Convertible Bonds 1,184,732 1,499,015 3.22
Italy Foreign US$ 500,000 Republic of Italy, 5% due
Government 6/28/2001 508,750 490,000 1.05
Obligations
Total Investments in Italian
Convertible Bonds 508,750 490,000 1.05
United Kingdom Food & Pound 500,000 Allied-Lyons PLC, 6.75% due
Beverage Sterling 7/07/2008 858,247 781,550 1.68
US$ 1,000,000 Grand Metropolitan PLC, 6.50% due
1/31/2000 1,082,500 1,230,000 2.64
Pound 550,000 Northern Foods PLC, 6.75% due
Sterling 8/08/2008 867,775 799,414 1.72
Total Investments in United
Kingdom Convertible Bonds 2,808,522 2,810,964 6.04
<PAGE>
Total Investments in Western
European Securities 4,672,508 4,950,699 10.63
Short-Term Securities
United States Commercial US$ 1,321,000 General Motors Acceptance Corp.,
Paper* 5.68% due 5/01/1997 1,321,000 1,321,000 2.83
US Government 1,000,000 US Treasury Bills, 4.75% due
Obligations* 5/01/1997 1,000,000 1,000,000 2.15
Total Investments in Short-Term
Securities 2,321,000 2,321,000 4.98
Total Investments $ 46,341,186 46,263,162 99.31
============
Unrealized Appreciation on Forward Foreign Exchange Contracts** 96,574 0.21
Other Assets Less Liabilities 225,602 0.48
------------ -------
Net Assets $ 46,585,338 100.00%
============ =======
<FN>
(a)American Depositary Receipts (ADR).
++Non-income producing security.
*Commercial Paper and certain US Government 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, 1997 were
as follows:
<CAPTION>
Foreign Unrealized Appreciation
Currency Sold Expiration Date (Note 1c)
<S> <C> <S> <C>
YEN 300,000,000 June 1997 $96,574
Total Unrealized Appreciation on Forward Foreign
Exchange Contracts--Net (US$ Commitment--$2,477,291) $96,574
=======
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of April 30, 1997
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$46,341,186) (Note 1a) $ 46,263,162
Unrealized appreciation on forward foreign exchange contracts
(Note 1c) 96,574
Cash 347
Foreign cash (Note 1b) 129,895
Receivables:
Interest $ 329,049
Dividends 49,217
Capital shares sold 34,186 412,452
------------
Prepaid expenses and other assets (Note 1f) 224,298
------------
Total assets 47,126,728
------------
Liabilities: Payables:
Capital shares redeemed 267,212
Distributor (Note 2) 26,456
Investment adviser (Note 2) 25,932 319,600
------------
Accrued expenses 221,790
------------
Total liabilities 541,390
------------
Net Assets: Net assets $ 46,585,338
============
Net Assets Class A Shares of Common Stock, $0.10 par value, 100,000,000
Consist of: shares authorized $ 93,899
Class B Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 245,752
Class C Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 21,715
Class D Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 66,517
Paid-in capital in excess of par 42,400,068
Accumulated investment loss--net (479,135)
Undistributed realized capital gains on investments and foreign
currency transactions--net 4,221,392
Unrealized appreciation on investments and foreign currency
transactions--net 15,130
------------
Net assets $ 46,585,338
============
<PAGE>
Net Asset Class A--Based on net assets of $10,168,947 and 938,992 shares
Value: outstanding $ 10.83
============
Class B--Based on net assets of $26,835,940 and 2,457,518 shares
outstanding $ 10.92
============
Class C--Based on net assets of $2,367,763 and 217,145 shares
outstanding $ 10.90
============
Class D--Based on net assets of $7,212,688 and 665,175 shares
outstanding $ 10.84
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1997
<S> <S> <C> <C>
Investment Interest and discount earned (net of $6,180 foreign withholding tax) $ 961,930
Income Dividends (net of $496 foreign withholding tax) 411,465
(Notes 1d & 1e): ------------
Total income 1,373,395
------------
Expenses: Investment advisory fees (Note 2) $ 197,005
Account maintenance and distribution fees--Class B (Note 2) 170,066
Transfer agent fees--Class B (Note 2) 84,417
Printing and shareholder reports 57,648
Registration fees (Note 1f) 48,989
Accounting services (Note 2) 37,763
Transfer agent fees--Class A (Note 2) 32,799
Professional fees 31,612
Directors' fees and expenses 22,999
Account maintenance and distribution fees--Class C (Note 2) 18,073
Transfer agent fees--Class D (Note 2) 17,658
Account maintenance fees--Class D (Note 2) 9,960
Transfer agent fees--Class C (Note 2) 9,601
Custodian fees 6,884
Pricing fees 4,588
Other 2,281
------------
Total expenses 752,343
------------
Investment income--net 621,052
------------
<PAGE>
Realized & Realized gain from:
Unrealized Gain Investments--net 3,704,011
(Loss) on Foreign currency transactions--net 81,362 3,785,373
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net (206,452)
(Notes 1b, 1c, Foreign currency transactions--net 30,189 (176,263)
1e & 3): ------------ ------------
Net realized and unrealized gain on investments and foreign
currency transactions 3,609,110
------------
Net Increase in Net Assets Resulting from Operations $ 4,230,162
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1997 Oct. 31, 1996
<S> <S> <C> <C>
Operations: Investment income--net $ 621,052 $ 1,655,902
Realized gain on investments and foreign currency transactions
--net 3,785,373 1,834,024
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net (176,263) 2,580,476
------------ ------------
Net increase in net assets resulting from operations 4,230,162 6,070,402
------------ ------------
Dividends & Investment income--net:
Distributions to Class A (353,820) (694,324)
Shareholders Class B (593,267) (1,473,613)
(Note 1g): Class C (59,622) (112,375)
Class D (176,095) (224,218)
Realized gain on investments--net:
Class A (371,546) (820,273)
Class B (771,279) (2,671,664)
Class C (84,137) (180,592)
Class D (171,039) (171,093)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (2,580,805) (6,348,152)
Capital Share Net decrease in net assets derived from capital share
Transactions transactions (24,342,942) (20,834,705)
(Note 4): ------------ ------------
<PAGE>
Net Assets: Total decrease in net assets (22,693,585) (21,112,455)
Beginning of period 69,278,923 90,391,378
------------ ------------
End of period* $ 46,585,338 $ 69,278,923
============ ============
<FN>
*Undistributed (accumulated) investment income (loss)--net $ (479,135) $ 82,617
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
The following per share data and ratios have For the
been derived from information provided in the Six Months
financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1997++ 1996++ 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.54 $ 10.71 $ 10.75 $ 11.08 $ 9.79
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .15 .32 .42 .33 .23
Realized and unrealized gain (loss) on
investments and foreign currency transactions
--net .61 .62 .11 (.27) 1.45
-------- -------- -------- -------- --------
Total from investment operations .76 .94 .53 .06 1.68
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.25) (.48) (.46) (.30) (.23)
Realized gain on investments--net (.22) (.63) (.11) (.09) (.16)
-------- -------- -------- -------- --------
Total dividends and distributions (.47) (1.11) (.57) (.39) (.39)
-------- -------- -------- -------- --------
Net asset value, end of period $ 10.83 $ 10.54 $ 10.71 $ 10.75 $ 11.08
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 7.47%+++ 9.34% 5.10% .61% 17.64%
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses 1.78%* 1.57% 1.38% 1.66% 2.22%
Net Assets: ======== ======== ======== ======== ========
Investment income--net 2.77%* 3.05% 4.03% 2.97% 2.36%
======== ======== ======== ======== ========
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 10,169 $ 17,741 $ 23,634 $ 7,850 $ 4,557
Data: ======== ======== ======== ======== ========
Portfolio turnover 8.60% 14.72% 101.12% 38.04% 26.02%
======== ======== ======== ======== ========
Average commission rate paid++++ $ .0622 $ .0679 -- -- --
======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effect of sales loads.
+++Aggregate total investment return.
++Based on average shares outstanding during the period.
++++For the 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. The "Average
Commission Rate Paid" includes commissions paid in foreign
currencies, which have been converted into US dollars using the
prevailing exchange rate on the date of the transaction. Such
conversions may significantly affect the rate shown.
++++Based on average shares outstanding during the period.
++++++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. The "Average
Commission Rate Paid" includes commissions paid in foreign
currencies, which have been converted into US dollars using the
prevailing exchange rate on the date of the transaction. Such
conversions may significantly affect the rate shown.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class B
The following per share data and ratios have For the
been derived from information provided in the Six Months
financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1997++++ 1996++++ 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.61 $ 10.77 $ 10.80 $ 11.13 $ 9.84
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .09 .21 .37 .21 .13
Realized and unrealized gain (loss) on
investments and foreign currency transactions
--net .63 .62 .05 (.25) 1.46
-------- -------- -------- -------- --------
Total from investment operations .72 .83 .42 (.04) 1.59
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.19) (.36) (.34) (.20) (.14)
Realized gain on investments--net (.22) (.63) (.11) (.09) (.16)
-------- -------- -------- -------- --------
Total dividends and distributions (.41) (.99) (.45) (.29) (.30)
-------- -------- -------- -------- --------
Net asset value, end of period $ 10.92 $ 10.61 $ 10.77 $ 10.80 $ 11.13
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 6.96%+++ 8.13% 4.01% (.37%) 16.45%
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses 2.85%* 2.64% 2.37% 2.69% 3.26%
Net Assets: ======== ======== ======== ======== ========
Investment income--net 1.68%* 1.98% 2.95% 1.95% 1.32%
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 26,836 $ 38,830 $ 58,660 $ 53,121 $ 29,831
Data: ======== ======== ======== ======== ========
Portfolio turnover 8.60% 14.72% 101.12% 38.04% 26.02%
======== ======== ======== ======== ========
Average commission rate paid++++++ $ .0622 $ .0679 -- -- --
======== ======== ======== ======== ========
<CAPTION>
Class C
For the
The following per share data and ratios have For the Period
been derived from information provided in the Six Months Oct. 21,
financial statements. Ended For the Year 1994++ to
April 30, Ended October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1997++++ 1996++++ 1995 1994++++
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.59 $ 10.75 $ 10.81 $ 10.74
Operating -------- -------- -------- --------
Performance: Investment income--net .09 .21 .36 --
Realized and unrealized gain on investments and
foreign currency transactions--net .62 .62 .05 .07
-------- -------- -------- --------
Total from investment operations .71 .83 .41 .07
-------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.18) (.36) (.36) --
Realized gain on investments--net (.22) (.63) (.11) --
-------- -------- -------- --------
Total dividends and distributions (.40) (.99) (.47) --
-------- -------- -------- --------
Net asset value, end of period $ 10.90 $ 10.59 $ 10.75 $ 10.81
======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 6.89%+++ 8.14% 3.89% .65%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 2.88%* 2.65% 2.41% 5.64%*
Net Assets: ======== ======== ======== ========
Investment income (loss)--net 1.66%* 1.97% 2.99% (1.74%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 2,368 $ 4,123 $ 4,598 $ 203
Data: ======== ======== ======== ========
Portfolio turnover 8.60% 14.72% 101.12% 38.04%
======== ======== ======== ========
Average commission rate paid++++++ $ .0622 $ .0679 -- --
======== ======== ======== ========
<CAPTION>
Class D
For the
The following per share data and ratios have For the Period
been derived from information provided in the Six Months Oct. 21,
financial statements. Ended For the Year 1994++ to
April 30, Ended October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1997++++ 1996++++ 1995 1994++++
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.55 $ 10.72 $ 10.76 $ 10.69
Operating -------- -------- -------- --------
Performance: Investment income--net .13 .31 .42 --
Realized and unrealized gain on investments and
foreign currency transactions--net .62 .61 .09 .07
-------- -------- -------- --------
Total from investment operations .75 .92 .51 .07
-------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.24) (.46) (.44) --
Realized gain on investments--net (.22) (.63) (.11) --
-------- -------- -------- --------
Total dividends and distributions (.46) (1.09) (.55) --
-------- -------- -------- --------
Net asset value, end of period $ 10.84 $ 10.55 $ 10.72 $ 10.76
======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 7.31%+++ 9.07% 4.87% .65%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses 2.05%* 1.77% 1.62% 5.13%*
Net Assets: ======== ======== ======== ========
Investment income (loss)--net 2.45%* 2.85% 3.79% (1.24%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 7,212 $ 8,585 $ 3,499 $ 179
Data: ======== ======== ======== ========
Portfolio turnover 8.60% 14.72% 101.12% 38.04%
======== ======== ======== ========
Average commission rate paid++++++ $ .0622 $ .0679 -- --
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effect of sales loads.
+++Aggregate total investment return.
++Commencement of Operations.
++++For the 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. The "Average
Commission Rate Paid" includes commissions paid in foreign
currencies, which have been converted into US dollars using the
prevailing exchange rate on the date of the transaction. Such
conversions may significantly affect the rate shown.
++++Based on average shares outstanding during the period.
++++++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. The "Average
Commission Rate Paid" includes commissions paid in foreign
currencies, which have been converted into US dollars using the
prevailing exchange rate on the date of the transaction. Such
conversions may significantly affect the rate shown.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
<PAGE>
1. Significant Accounting Policies:
Merrill Lynch Global Convertible Fund, Inc. (the "Fund") is
registered under the Investment Company Act of 1940 as a
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.
(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
broadest 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.
<PAGE>
(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 operations 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.
* Financial futures contracts--The Fund may purchase or sell
interest rate futures contacts and options on such futures contracts
for the purpose of hedging the market risk on existing securities 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 realizes 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.
<PAGE>
(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 by imposed on interest, dividends, and capital
gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Dividend income is recorded on the ex-
dividend dates. Dividends from foreign securities where the ex-
dividend date may have passed are subsequently recorded when the
Fund has determined the ex-dividend date. Interest income (including
amortization of discount) is recognized on the accrual basis.
Realized gains and losses on security transactions are determined on
the identified cost basis.
(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.
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:
<PAGE>
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
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, 1997, 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 $ 11 $ 188
Class D $180 $2,430
For the six months ended April 30, 1997, MLPF&S received contingent
deferred sales charges of $172,692 and $1,209 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, MLFDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1997 were $4,912,361 and
$26,479,022, respectively.
Net realized and unrealized gains (losses) as of April 30, 1997 were
as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
<PAGE>
Long-term investments $ 3,704,354 $ (78,024)
Short-term investments (343) --
Foreign currency transactions (216,624) (3,420)
Forward foreign exchange 297,986 96,574
contracts ------------ -----------
Total $ 3,785,373 $ 15,130
============ ===========
As of April 30, 1997, net unrealized depreciation for Federal income
tax purposes aggregated $78,024, of which $3,952,011 related to
appreciated securities and $4,030,035 related to depreciated
securities. At April 30, 1997, the aggregate cost of investments for
Federal income tax purposes was $46,341,186.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
were $24,342,942 and $20,834,705 for the six months ended April 30,
1997 and the year ended October 31, 1996, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Six Months Dollar
Ended April 30, 1997 Shares Amount
Shares sold 949,621 $ 10,115,422
Shares issued to shareholders in
reinvestment of dividends
and distributions 59,638 620,254
------------ -------------
Total issued 1,009,259 10,735,676
Shares redeemed (1,753,846) (18,676,545)
------------ -------------
Net decrease (744,587) $ (7,940,869)
============ =============
Class A Shares for the Year Dollar
Ended October 31, 1996 Shares Amount
Shares sold 685,844 $ 7,246,703
Shares issued to shareholders in
reinvestment of dividends
and distributions 135,086 1,380,166
------------ -------------
Total issued 820,930 8,626,869
Shares redeemed (1,343,548) (14,564,322)
------------ -------------
Net decrease (522,618) $ (5,937,453)
============ =============
<PAGE>
Class B Shares for the
Six Months Ended Dollar
April 30, 1997 Shares Amount
Shares sold 184,406 $ 1,990,125
Shares issued to shareholders in
reinvestment of dividends
and distributions 99,186 1,040,450
------------ -------------
Total issued 283,592 3,030,575
Automatic conversion of shares (18,444) (197,620)
Shares redeemed (1,466,325) (15,783,249)
------------ -------------
Net decrease (1,201,177) $ (12,950,294)
============ =============
Class B Shares for the Year Dollar
Ended October 31, 1996 Shares Amount
Shares sold 958,130 $ 10,188,233
Shares issued to shareholders in
reinvestment of dividends
and distributions 295,014 3,025,724
------------ -------------
Total issued 1,253,144 13,213,957
Automatic conversion of shares (559,618) (5,864,176)
Shares redeemed (2,481,068) (26,810,294)
------------ -------------
Net decrease (1,787,542) $ (19,460,513)
============ =============
Class C Shares for the
Six Months Ended Dollar
April 30, 1997 Shares Amount
Shares sold 26,640 $ 286,552
Shares issued to shareholders in
reinvestment of dividends
and distributions 11,374 118,944
------------ -------------
Total issued 38,014 405,496
Shares redeemed (210,116) (2,256,712)
------------ -------------
Net decrease (172,102) $ (1,851,216)
============ =============
<PAGE>
Class C Shares for the Year Dollar
Ended October 31, 1996 Shares Amount
Shares sold 234,669 $ 2,490,027
Shares issued to shareholders in
reinvestment of dividends
and distributions 21,832 223,912
------------ -------------
Total issued 256,501 2,713,939
Shares redeemed (294,992) (3,188,951)
------------ -------------
Net decrease (38,491) $ (475,012)
============ =============
Class D Shares for the
Six Months Ended Dollar
April 30, 1997 Shares Amount
Shares sold 22,390 $ 239,652
Automatic conversion of shares 18,467 197,620
Shares issued to shareholders in
reinvestment of dividends
and distributions 23,285 243,245
------------ -------------
Total issued 64,142 680,517
Shares redeemed (212,876) (2,281,080)
------------ -------------
Net decrease (148,734) $ (1,600,563)
============ =============
Class D Shares for the Year Dollar
Ended October 31, 1996 Shares Amount
Shares sold 225,183 $ 2,423,111
Automatic conversion of shares 562,293 5,864,176
Shares issued to shareholders in
reinvestment of dividends
and distributions 27,215 280,369
------------ -------------
Total issued 814,691 8,567,656
Shares redeemed (327,147) (3,529,383)
------------ -------------
Net increase 487,544 $ 5,038,273
============ =============
