MERRILL LYNCH
GLOBAL
CONVERTIBLE
FUND, INC.
FUND LOGO
Quarterly Report
January 31, 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.
Merrill Lynch
Global Convertible
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
<PAGE>
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
Mark B. Goldfus, Secretary
Custodian
State Street Bank and 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
For most world equity markets, 1997 began with a continuation of the
gains that were realized in 1996. For example, the Dow Jones
Industrial Average rose 5.66% during January. Most European equity
markets came close to, if not exceeding, that gain. Specifically,
two Asian market indexes that ran counter to this trend during
January were the Nikkei 225 Index in Japan, which was down 5.33%,
and the Hang Seng Stock Index in Hong Kong, which fell 0.96%.
Bond markets generally continued their lackluster performance of
1996 as investor concern over the future direction of interest rates
remained. The Federal Reserve Board took no action at the Federal
Open Market Committee meeting on February 4 and 5, 1997, but there
is the possibility of a tightening of interest rates sometime in the
near future.
<PAGE>
While the US gross domestic product growth rose at a rather firm
4.7% rate in the fourth quarter of 1996, it appears that sharp gain
was affected by increased exports and consumer spending, which do
not appear to be sustainable into 1997. We look for growth to fall
to the 2%--2.5% range for the first half of 1997. Inflation still
appears to be under control but the economic figures will certainly
be watched closely by the Federal Reserve Board in the coming
months.
An important occurrence witnessed by the financial market during
1996 and thus far into 1997 was the strength of the US dollar
against most major world currencies. The sharp advances versus the
Japanese yen and the Deutschemark caused a number of major US
corporations to be concerned about the effects on future profits and
competitiveness. Overall, however, we believe that it is not a major
problem at this time. However, if the US dollar strength continues,
or intensifies, there could be repercussions, in our opinion.
In Europe, the firm equity markets and general decline in interest
rates were encouraging. European central banks appear ready to help
keep the economic recoveries underway by maintaining softer monetary
policies. While the environment should benefit convertible bonds,
the strong US dollar could cut total returns on a country-by-country
basis.
In Asia, equity market declines occurred in countries such as
Taiwan, Korea, Thailand and Hong Kong. However, the major declines
were in Japan, where concerns about the problems in the financial
area, as well as the apparent lack of forceful government action,
led investors to be extremely wary about committing assets. We
expect that Japanese monetary policy should remain rather easy for
some time and may work to stimulate the economy by allowing the yen
to weaken. While there could be an economic expansion this year, it
is altogether possible that a more sustainable, stronger advance
will come in 1998. In any event, it still is feasible that Japanese
equity markets could have a decent rally in coming months.
Overall, the climate for global convertible securities in the past
three months was rather favorable. The two impediments were the weak
Japanese market and strong US dollar. It is our opinion that the
coming months will continue to provide a positive environment for
the Fund, and that the US dollar will ease somewhat from its current
highs.
In Conclusion
We thank you for your ongoing interest in Merrill Lynch Global
Convertible Fund, Inc., and we look forward to reviewing our outlook
and strategy in our next report to shareholders.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Harry E. Dewdney)
Harry E. Dewdney
Vice President and
Portfolio Manager
March 3, 1997
As of December 31, 1996, N. John Hewitt retired as Senior Vice
President of the Fund. His colleagues at Merrill Lynch Asset
Management, L.P. join the Fund's Board of Directors in wishing Mr.
Hewitt well in his retirement.
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.
<PAGE>
* 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)
<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--1/31/97 10.54 10.62 -- -- + 0.76
------ ------
Total $1.225 Total $4.029
<PAGE>
Cumulative total return as of 1/31/97: +80.64%**
<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
1996 10.35 10.63 0.190 0.272 + 7.26
1/1/97--1/31/97 10.63 10.70 -- -- + 0.66
------ ------
Total $1.225 Total $3.363
Cumulative total return as of 1/31/97: +69.34%**
<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>
<PAGE>
<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--1/31/97 10.60 10.68 -- -- + 0.75
------ ------
Total $0.219 Total $1.585
Cumulative total return as of 1/31/97: +17.82%**
<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
1996 10.29 10.55 0.190 0.365 + 8.04
1/1/97--1/31/97 10.55 10.63 -- -- + 0.76
------ ------
Total $0.219 Total $1.787
Cumulative total return as of 1/31/97: +20.13%**
<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>
Average Annual
Total Return
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/96 +8.40% +2.71%
Five Years Ended 12/31/96 +9.12 +7.95
Inception (11/4/88) through 12/31/96 +7.42 +6.71
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/96 +7.26% +3.26%
Five Years Ended 12/31/96 +7.99 +7.99
Inception (2/26/88) through 12/31/96 +6.06 +6.06
[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 12/31/96 +7.12% +6.12%
Inception (10/21/94) through 12/31/96 +7.39 +7.39
[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*
<PAGE>
Year Ended 12/31/96 +8.04% +2.37%
Inception (10/21/94) through 12/31/96 +8.34 +5.71
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
1/31/97 10/31/96 1/31/96 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Convertible Fund, Inc. Class A Shares* $10.62 $10.54 $10.50 + 2.99%(1) + 2.60%(1)
ML Global Convertible Fund, Inc. Class B Shares* 10.70 10.61 10.57 + 3.07(1) + 2.68(1)
ML Global Convertible Fund, Inc. Class C Shares* 10.68 10.59 10.55 + 3.07(1) + 2.68(1)
ML Global Convertible Fund, Inc. Class D Shares* 10.63 10.55 10.51 + 2.99(1) + 2.60(1)
Dow Jones Industrial Average** 6,813.09 6,029.38 5,395.30 +26.28 +13.00
S&P 500 Index** 786.16 705.27 636.02 +23.61 +11.47
Japan Nikkei Dow Jones 225** 18,330.01 20,466.86 20,812.74 -11.93 -10.44
London Financial Times Index** 4,275.80 3,979.10 3,759.30 +13.74 + 7.46
ML Global Convertible Fund, Inc. Class A Shares--Total Return* + 6.83(2) + 4.41(3)
ML Global Convertible Fund, Inc. Class B Shares--Total Return* + 5.72(4) + 4.19(5)
ML Global Convertible Fund, Inc. Class C Shares--Total Return* + 5.78(6) + 4.19(7)
ML Global Convertible Fund, Inc. Class D Shares--Total Return* + 6.59(8) + 4.34(9)
Dow Jones Industrial Average**--Total Return +29.15 +13.60
S&P 500 Index**--Total Return +26.35 +12.03
<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 $0.388 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.186 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.272 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.156 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(6)Percent change includes reinvestment of $0.277 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(7)Percent change includes reinvestment of $0.156 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(8)Percent change includes reinvestment of $0.365 per share ordinary
income dividends and $0.190 per share capital gains distributions.
(9)Percent change includes reinvestment of $0.179 per share ordinary
income dividends and $0.190 per share capital gains distributions.
</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. de C.V.
Communications (TELMEX)(ADR)(a) $ 756,200 $ 752,500 1.22%
Total Investments in Latin American
Securities 756,200 752,500 1.22
NORTH
AMERICA
United Food/Beverage/ 20,531 ConAgra Inc. 653,326 1,036,816 1.69
States Tobacco & Household
Metals & Mining 10,000 WHX Corp. 179,350 86,250 0.14
Retail Stores 20,000 Home Depot, Inc. 944,247 990,000 1.61
Total Investments in United States
Common Stocks 1,776,923 2,113,066 3.44
Convertible Preferred Stocks
Canada Oil & Gas Producers 25,000 Occidental Petroleum Corp., Pfd.,
Series A 1,371,600 1,678,125 2.73
Total Investments in Canadian
Convertible Preferred Stocks 1,371,600 1,678,125 2.73
United Data Processing 20,000 UNISYS Corp., $3.75 Pfd., Series A 1,233,875 742,500 1.21
States
<PAGE>
Insurance 25,000 American General Corp., Pfd. 1,306,729 1,365,625 2.22
25,000 St. Paul Companies, Inc., Pfd. 1,307,892 1,437,500 2.34
------------ ------------ -------
2,614,621 2,803,125 4.56
Metals & Mining 50,000 USX Corp., $3.25 Pfd. 2,413,750 2,281,250 3.71
35,500 WHX Corp., Pfd. 1,630,980 1,415,563 2.30
20,000 WHX Corp., Pfd., Series B 1,000,150 802,500 1.31
------------ ------------ -------
5,044,880 4,499,313 7.32
Real Estate 50,000 Merry Land & Investment Company,
Investment Trust Inc., Pfd. 1,261,637 1,393,750 2.27
Total Investments in United States
Convertible Preferred Stocks 10,155,013 9,438,688 15.36
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Face Percent of
(concluded) Industries Amount Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Automobile US$ 2,000,000 The Pep Boys--Manny, Moe & Jack,
States Parts 4% due 9/01/1999 $ 1,931,875 $ 2,040,000 3.32%
(concluded)
Building & 1,300,000 Masco Corp., 5.25% due 2/15/2012 1,135,500 1,300,000 2.12
Construction
Chemicals 1,700,000 Ashland Oil Inc., 6.75% due
7/01/2014 1,734,500 1,742,500 2.83
Computer Services 500,000 Cray Research, Inc., 6.125% due
2/01/2011 510,000 390,625 0.64
Industrial 2,000,000 Rouse Co., 5.75% due 7/23/2002 1,699,000 2,190,000 3.56
Insurance 1,500,000 Aegon N.V., 4.75% due 11/01/2004 1,847,500 3,291,000 5.35
Machine 1,500,000 Cooper Industries, Inc., 7.05% due
Diversified 1/01/2015 1,538,750 1,605,000 2.61
Metals & Mining 1,000,000 USX Corp., 7% due 6/15/2017 913,500 1,005,000 1.64
Natural Gas 2,500,000 Consolidated Natural Gas Co., 7.25%
due 12/15/2015 2,567,750 2,725,000 4.43
Oil & Related 2,500,000 Pennzoil Co., 4.75% due 10/01/2003 2,643,000 2,875,000 4.68
<PAGE>
Pharmaceuticals 1,800,000 Alza Corp., 5% due 5/01/2006 1,765,500 1,813,500 2.95
Retail Stores 3,200,000 Home Depot, Inc., 3.25% due 10/01/2001 3,284,375 3,104,000 5.05
Transportation 1,200,000 Alaska Air Group, Inc., 6.50% due
6/15/2005 1,247,250 1,362,000 2.22
Total Investments in United States
Convertible Bonds 22,818,500 25,443,625 41.40
Total Investments in North American
Securities 36,122,036 38,673,504 62.93
<CAPTION>
PACIFIC Shares
BASIN Held Common Stocks
Hong Kong Utilities--Electric 70,000 Shandong Huaneng Power Company Ltd.
(ADR) (a) 704,200 761,250 1.24
Total Investments in Hong Kong
Common Stocks 704,200 761,250 1.24
Japan Financial Services 10,000 Daiwa Securities Co., Ltd. 109,055 77,640 0.13
10,000 Nikko Securities Co., Ltd. 91,790 62,376 0.10
10,000 Yamaichi Securities Co., Ltd. 94,005 36,386 0.06
------------ ------------ -------
294,850 176,402 0.29
Machinery 20,000 Shimadzu Corp. 156,900 97,360 0.16
Trading 50,000 Marubeni Corp. 241,883 198,020 0.32
Total Investments in Japanese
Common Stocks 693,633 471,782 0.77
<CAPTION>
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 1,490,000 2.42
Total Investments in Hong Kong
Convertible Bonds 1,977,000 1,490,000 2.42
Japan Auto & Truck YEN 50,000,000 No. 2 Toyota Motor Corp., 1.20% due
1/28/1998 572,731 672,442 1.09
<PAGE>
Chemicals 100,000,000 No. 6 Sumitomo Bakelite Co., Ltd.,
1.20% due 9/29/2006 1,042,946 949,670 1.55
Electronics 40,000,000 No. 2 Kokusai Electric Co., 1.30%
due 9/30/2002 452,059 358,086 0.58
50,000,000 No. 5 Matsushita Electric Industrial
Co., 1.30% due 3/29/2002 513,387 482,673 0.79
37,000,000 No. 6 Sanyo Electric Co., Ltd., 1.70%
due 11/29/2002 391,721 297,343 0.48
50,000,000 No. 11 Sharp Corp., 1.50% due
9/30/1998 551,096 463,696 0.75
50,000,000 No. 2 Tokyo Electron Ltd., 0.90% due
9/30/2003 572,581 523,515 0.85
------------ ------------ -------
2,480,844 2,125,313 3.45
Food & Beverage 100,000,000 No. 9 Asahi Breweries, Ltd., 0.95%
due 12/26/2002 1,114,675 817,657 1.33
50,000,000 No. 1 Sanyo Coca-Cola Bottling,
Inc., 0.90% due 6/30/2003 522,384 400,165 0.65
50,000,000 No. 3 Sapporo Breweries, Ltd.,
1.20% due 12/18/2009 525,379 393,564 0.64
------------ ------------ -------
2,162,438 1,611,386 2.62
Industrial 70,000,000 No. 3 Sony Corp., 1.40% due
9/30/2003 832,971 866,337 1.41
50,000,000 No. 5 Sony Corp., 0.15% due
3/30/2001 498,392 519,389 0.85
------------ ------------ -------
1,331,363 1,385,726 2.26
Leisure 50,000,000 No. 5 Canon Co., 1% due 12/20/2002 639,008 721,947 1.17
Machinery 100,000,000 No. 8 Matsushita Electric Works,
Ltd., 2.70% due 5/31/2002 1,228,409 962,046 1.57
25,000,000 No. 8 NEC Corp., 1.70% due 3/31/1999 315,788 300,949 0.49
30,000,000 No. 2 Nippondenso Co., Ltd., 1.20%
due 12/26/1997 337,449 334,158 0.54
------------ ------------ -------
1,881,646 1,597,153 2.60
Retail Stores 50,000,000 No. 1 Taiyo Company Ltd., 2.50% due
2/28/2002 594,601 410,479 0.67
<PAGE>
Transportation 50,000,000 No. 6 Keihan Electric Railway Co.,
Ltd., 1% due 3/31/2003 539,009 371,287 0.60
50,000,000 No. 1 Nankai Electric Railway Co.,
Ltd., 2.70% due 3/30/2001 593,306 424,918 0.69
50,000,000 No. 6 Yamato Transport Co., Ltd.,
1.70% due 9/30/2002 539,151 441,419 0.72
------------ ------------ -------
1,671,466 1,237,624 2.01
Total Investments in Japanese
Convertible Bonds 12,377,043 10,711,740 17.42
Total Investments in Pacific Basin
Securities 15,751,876 13,434,772 21.85
WESTERN
EUROPE Common Stocks
United Business 71,944 Cordiant PLC (Ordinary) 170,504 118,749 0.19
Kingdom Services
Total Investments in United
Kingdom Common Stocks 170,504 118,749 0.19
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN EUROPE Face Percent of
(concluded) Industries Amount Convertible Bonds Cost Value Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
France Leisure Ffr 4,200,000 Euro Disney SCA, 6.75% due 10/01/2001 $ 686,298 $ 840,868 1.37%
Pharmaceuticals 7,000 Sanofi S.A., 4% due 1/01/2000 (Units) 498,434 755,696 1.23
Total Investments in French
Convertible Bonds 1,184,732 1,596,564 2.60
Italy Foreign US$ 1,500,000 Republic of Italy, 5% due 6/28/2001 1,526,250 1,496,250 2.44
Government
Obligations
Total Investments in Italian
Convertible Bonds 1,526,250 1,496,250 2.44
<PAGE>
United Food & Pound 500,000 Allied-Lyons PLC, 6.75% due 7/07/2008 858,247 751,172 1.22
Kingdom Beverage Sterling
US$ 1,500,000 Grand Metropolitan PLC, 6.50% due
1/31/2000 1,612,500 1,725,000 2.81
Pound 550,000 Northern Foods PLC, 6.75% due 8/08/2008 867,775 802,051 1.30
Sterling
Total Investments in United Kingdom
Convertible Bonds 3,338,522 3,278,223 5.33
Total Investments in Western
European Securities 6,220,008 6,489,786 10.56
Short-Term Securities
United Commercial* US$ 669,000 General Electric Capital Corp.,
States Paper 5.58% due 2/03/1997 668,793 668,793 1.09
Total Investments in Short-Term
Securities 668,793 668,793 1.09
Total Investments $ 59,518,913 60,019,355 97.65
============
Other Assets Less Liabilities 1,443,637 2.35
------------ -------
Net Assets $ 61,462,992 100.00%
============ =======
Net Asset Class A--Based on net assets of $15,186,762 and
Value: 1,429,874 shares outstanding $ 10.62
============
Class B--Based on net assets of $34,456,734 and
3,219,892 shares outstanding $ 10.70
============
Class C--Based on net assets of $3,756,266 and
351,796 shares outstanding $ 10.68
============
Class D--Based on net assets of $8,063,230 and
758,351 shares outstanding $ 10.63
============
<FN>
(a)American Depositary Receipts (ADR).
*Commercial Paper is traded on a discount basis; the interest rate
shown is the discount rate paid at the time of purchase by the Fund.
</TABLE>
