<PAGE>
Credit Suisse Asset Management Strategic Global Income Fund, Inc.
153 East 53rd Street
New York, NY 10022
- ---------------------------------------------
OFFICERS AND DIRECTORS
<TABLE>
<S> <C>
William W. Priest, Jr. Gregg M. Diliberto
CHAIRMAN OF THE BOARD INVESTMENT OFFICER
Prof. Enrique R. Arzac Suzanne E. Moran
DIRECTOR INVESTMENT OFFICER
Lawrence J. Fox Hal Liebes
DIRECTOR SENIOR VICE PRESIDENT
James S. Pasman, Jr. Michael A. Pignataro
DIRECTOR CHIEF FINANCIAL OFFICER, VICE
Richard J. Lindquist PRESIDENT AND SECRETARY
PRESIDENT AND CHIEF INVESTMENT Robert M. Rizza
OFFICER VICE PRESIDENT AND TREASURER
</TABLE>
- --------------------------------------------------------
INVESTMENT ADVISER
Credit Suisse Asset Management
153 East 53rd Street
New York, New York 10022
Phone 1-800-293-1232
- --------------------------------------------------------
ADMINISTRATOR
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
- --------------------------------------------------------
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
- --------------------------------------------------------
SHAREHOLDER SERVICING AGENT
BankBoston, N.A.
P.O. Box 1865
Mailstop 45-02-62
Boston, Massachusetts 02105-1865
Phone 1-800-730-6001
- --------------------------------------------------------
LEGAL COUNSEL
Willkie Farr & Gallagher
787 7th Avenue
New York, New York 10019
- --------------------------------------------------------
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
- --------------------------------------------------------
- --------------------------------------------------------------------------------
Credit Suisse Asset Management
Strategic Global Income Fund, Inc.
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
June 30, 1999
<PAGE>
CREDIT SUISSE ASSET MANAGEMENT STRATEGIC GLOBAL INCOME FUND, INC.
- ----------
Dear Shareholders: July 16, 1999
We are writing to report on the activities of Credit Suisse Asset Management
Strategic Global Income Fund, Inc. ("the Fund") for the quarter ended June 30,
1999 and to discuss our investment strategy.
At June 30, 1999, the Fund's net asset value ("NAV") was $9.29, compared to
an NAV of $9.19 at March 31, 1999. The Fund's total return (based on NAV and
assuming reinvestment of dividends of $0.2175 per share) for the period was
3.6%. For the first six months of 1999, the Fund returned 5.8%.
At June 30, 1999, $51.6 million was invested in high yield debt securities;
$3.0 million in investment-grade debt securities; $15.8 million in
emerging-market debt securities; and the balance of $8.1 million in equity
securities. Of the debt securities, the largest concentration (56.7%) was
invested in B-rated issues.
THE MARKET: FED-WATCHING
The theme driving most segments of the fixed income market changed in the
second quarter. Following two consecutive quarters in which investors'
increasing comfort with risk triggered a revival in prices of "spread product"
(I.E., debt securities whose market valuation is driven by the difference, known
as the "spread," between their yields and those of U.S. Treasury debt), market
participants concentrated far more narrowly on the prospects for U.S. interest
rates and inflation.
The focus of their concentration was the Federal Reserve, which faced
mounting pressure to raise rates in order to cool off an economy that had long
appeared on the verge of overheating. Tension began to build in earnest in
mid-May, when the Fed chose to leave rates unchanged but announced that its
official bias had gone from neutral to one in favor of raising rates.
Activity in most fixed income sectors, which had had plenty of time to
wrestle with the potential implications of higher rates and also took
encouragement from favorable U.S. inflation data for May, started to take on a
better tone by late June. When the Fed finally raised rates by 25 basis points
on June 30, then, its move was widely expected and greeted with relief.
Investors received an unexpected bonus when the Fed simultaneously announced
that its official bias on rates had returned to neutral.
Within the broad fixed income universe, both high yield and emerging market
debt fared relatively well. High yield outperformed investment-grade securities
and was virtually the only U.S. fixed income sector to generate a positive
return during the quarter. As represented by the Salomon Smith Barney High-Yield
Market Index (SSBHYMI), high yield's 0.3% return compared favorably to the 0.9%
decline in the Lehman Brothers Aggregate Bond Index, a standard proxy for U.S.
investment-grade instruments. Yield spreads for high yield narrowed a bit,
furthermore, while they widened for all investment-grade sectors.
There were two reasons for high yield's strength. First was the simple fact
that high yield tends to fare better than higher-quality sectors during times
when interest rates are rising or investors expect rates to rise, because such
times typically occur when the economy is strong, which is good for most high
yield issuers. The second was an improving liquidity environment due to robust
demand for new collateralized bond obligations backed by high yield securities.
As for emerging debt markets, the J.P. Morgan Emerging Markets Bond Index
Plus rose 4.5%, compared to a 3.4% loss for Morgan's major-nation sovereign debt
benchmark, its Global Government Bond Index. Emerging debt spreads relative to
Treasuries, in addition, narrowed by 101 basis points. Market sentiment improved
on the basis of firming commodity prices and local factors, notably in Russia
and Emerging Asia, and investors tended to shrug off concerns about U.S.
interest rates.
PERFORMANCE: STRONG IN INTERNATIONAL AND HIGH YIELD
The Fund performed well during the quarter, both within the international
and high yield portions of the portfolio:
INTERNATIONAL. The Fund continued to benefit from its exposure to emerging
debt markets, which accounted for nearly one-quarter of total assets. Effective
decisions included our successful exploitation of a short-term overweighting in
Russia, which was the best-performing debt market in the entire world;
overweighting in Venezuela, which was the quarter's second-strongest market
after Russia; and underweighting in Argentina, which barely generated a positive
return.
HIGH YIELD. Our largest high yield industry exposure was in
telecommunications, which we significantly overweighted compared to SSBHYMI.
This had a very positive impact on performance in two important ways. First, a
disproportionately high degree of our individual telecom holdings were rated
CCC, and CCC-rated securities as a group outperformed SSBHYMI by a staggeringly
wide margin. Second, our telecom exposure included a lot of deferred-interest
instruments such as zero-coupon bonds, which also outperformed.
OUTLOOK: STILL OPTIMISTIC
HIGH YIELD. The optimistic outlook for the high yield market that we
expressed in our last report has not changed. We still expect sentiment and
price appreciation to be supported by the ongoing strength of the economy;
minimal inflation; and signs of improvement in economically sensitive
industries; and anticipate that the Federal Reserve's shift to a neutral stance
on interest rates should be additionally positive. Yield spreads relative to
comparable-maturity U.S. Treasury bonds--which have steadily fallen since
peaking in mid-1998--should continue to narrow, which should push bond prices
higher.
Now that the Fed has finally raised short-term U.S. interest rates,
investors are becoming concerned about whether the rate hike is an isolated
phenomenon, or the first in a series of two or three such Fed moves designed to
slow down the
2
<PAGE>
vibrant U.S. economy. Our own view is that the probability of further rate hikes
this year is low, based on ongoing weakness in commodity prices; an enormous
worldwide glut of manufacturing capacity; the fact that rates are already on the
high side when adjusted for inflation; and the simple absence of any "smoking
gun"-type indicator that inflation is truly back.
The essential strategy with which we have managed the Fund for some time
remains intact. We are keeping the portfolio most heavily weighted in
telecommunications, cable/ media and gaming, whose positive industry and company
fundamentals are unchanged. We are also selectively adding to positions in
economically sensitive industries such as paper and energy, whose underlying
fundamentals are beginning to show genuine signs of improvement, and will
continue to do so if this trend continues.
INTERNATIONAL. Our long-term outlook for emerging debt markets remains
optimistic as well, based on the fact that valuations are roughly unchanged from
their levels at the beginning of 1999, while overall risk has declined. Now that
U.S. interest rates have officially been raised, furthermore, performance among
individual markets should become less correlated and more market-specific.
We continue to favor two general types of emerging markets. These are
commodity-linked nations such as Mexico, Venezuela and Indonesia; and stronger
sovereign credits that offer the best value, including Mexico, Panama and the
Philippines. The most prominent country allocations remain an overweight in
Russia; and an underweight in Argentina, in which we expect conditions to remain
unfavorable, at least until the upcoming elections in October.
As developments occur that we believe would be of interest to you, we will
keep you informed. Meanwhile, if you have any questions about your portfolio or
the capital markets generally, please feel free to call upon us at any time.
We appreciate your interest in the Fund and would be pleased to respond to
your questions or comments. Any questions regarding net asset value,
performance, dividends, portfolio management or allocations should be directed
to Credit Suisse Asset Management at (800) 293-1232. All other inquiries
regarding account information or requests for a prospectus or other reports
should be directed to the Fund's Shareholder Servicing Agent at (800) 730-6001.
Sincerely yours,
/s/ Richard J. Lindquist
Richard J. Lindquist
PRESIDENT AND CHIEF INVESTMENT OFFICER*
/s/ William W. Priest, Jr.
William W. Priest, Jr.
CHAIRMAN OF THE BOARD **
FROM CREDIT SUISSE ASSET MANAGEMENT:
I. Effective January 12, 1999, the Fund's investment adviser, BEA
Associates, changed its name to Credit Suisse Asset Management ("CSAM"). In
making the announcement, the firm said that it expected the new name to enhance
its recognition as a global asset manager. Credit Suisse Asset Management is the
investment division of Credit Suisse Group, one of the world's largest financial
organizations, with $600 billion in assets under management.
II. Effective May 11, 1999, the BEA Strategic Global Income Fund, Inc.
announced that, following approval by shareholders at their Annual Shareholders'
Meeting held on May 10, 1999, the Fund had changed its name to Credit Suisse
Asset Management Strategic Global Income Fund, Inc. The Fund's ticker symbol on
the New York Stock Exchange changed to "CGF" from "FBI" accordingly.
III. Effective September 7, 1999, shareholders whose shares are registered
in their own name will automatically participate in a dividend reinvestment
program known as the InvestLinkSM Program (the "Program"). The Program can be of
value to shareholders in maintaining their proportional ownership interest in
the Fund in an easy and convenient way. A shareholder whose shares are held in
the name of a broker/dealer or nominee should contact the Fund's Transfer Agent
for details about participating in the Program. The Program also provides for
additional share purchases. The Program is described on pages 23 through 24 of
this report.
IV. Many services provided to the Fund and its shareholders by CSAM and the
Fund's service providers rely on the functioning of their respective computer
systems. Many computer systems cannot distinguish the year 2000 from the year
1900, with resulting potential difficulty in performing various calculations
(the "Year 2000 Issue"). The Year 2000 Issue could potentially have an adverse
impact on the handling of security trades, the payment of interest and
dividends, pricing, account services and other Fund operations.
CSAM recognizes the importance of the Year 2000 Issue and is taking
appropriate steps necessary in preparation for the year 2000. At this time,
there can be no assurance that these steps will be sufficient to avoid any
adverse impact on the Fund, nor can there be any assurance that the Year 2000
Issue will not have an adverse effect on the Fund's investments or on global
markets or economies, generally.
CSAM anticipates that its systems will be adapted in time for the year 2000.
CSAM is seeking assurances that comparable steps are being taken by the Fund's
other major service providers. CSAM will be monitoring the Year 2000 Issue in an
effort to ensure appropriate preparation.
* Richard J. Lindquist, who is a Managing Director of Credit Suisse Asset
Management ("CSAM"), formerly known as BEA Associates, is primarily responsible
for management of the Fund's assets. He has served in such capacity since
November 21, 1996. Prior to that date, he served as Vice President to the Fund,
a position he assumed on August 15, 1989. Mr. Lindquist joined CSAM on May 1,
1995 as a result of CSAM's acquisition of CS First Boston Investment Management
Corporation ("CSFBIM"). Prior to joining CSAM and beginning in July, 1989, he
held various offices at CSFBIM. Mr. Lindquist also is President and Chief
Investment Officer of Credit Suisse Asset Management Income Fund, Inc.
** William W. Priest, Jr., who is a Managing Director and Chief Executive
Officer-Americas of Credit Suisse Asset Management ("CSAM"), formerly known as
BEA Associates, joined CSAM in 1972. Mr. Priest is Director and President of The
Indonesia Fund, Inc. and Director and Chairman of the Board of Credit Suisse
Asset Management Income Fund, Inc.; The Brazilian Equity Fund, Inc.; The Chile
Fund, Inc.; The Emerging Markets Infrastructure Fund, Inc.; The Emerging Markets
Telecommunications Fund, Inc.; The First Israel Fund, Inc.; The Latin America
Equity Fund, Inc.; The Latin America Investment Fund, Inc.; and The Portugal
Fund, Inc.
3
<PAGE>
CREDIT SUISSE ASSET MANAGEMENT STRATEGIC GLOBAL INCOME FUND, INC.
TOP TEN HOLDINGS (UNAUDITED)
<TABLE>
<CAPTION>
(as a % of net assets as of 6/30/99)
- ---------------------------------------------
<C> <S> <C>
1. Federal Republic of Brazil, Capitalization Bonds 5.00%,
4/15/14................................................... 1.8%
2. Dr. Pepper Bottling Holdings, Inc. Class A.................. 1.7%
3. Federal Republic of Brazil Debentures Series EI-L 6.125%,
4/15/06................................................... 1.6%
4. Republic of Venezuela Unsecured Bonds 9.25%, 9/15/27........ 1.6%
5. Republic of Argentina Debentures 6.188%, 3/31/05............ 1.4%
6. Green Tree Financial Corp. Manufactured Housing Installment
Sale Contracts Series 1993-4, Class B1 7.20%, 1/15/19..... 1.1%
7. United Mexican States 11.50%, 5/15/26....................... 1.0%
8. Banco Nacional de Commercio 7.25%, 02/02/04................. 1.0%
9. Spanish Broadcasting System, Inc. 13.50%, Cum. Exchangeable
144A...................................................... 0.9%
10. Univision Network Holding L.P. Sub. Notes 7.00%, 12/17/02... 0.9%
</TABLE>
CREDIT QUALITY BREAKDOWN (UNAUDITED)
<TABLE>
<CAPTION>
(as a % of total investments as of 6/30/99)
<S> <C>
AAA/Aaa.......................................................... 1.2%
AA/Aa............................................................ --
A/A.............................................................. 0.3
BBB/Baa.......................................................... 1.1
BB/Ba............................................................ 13.7
B/B.............................................................. 56.0
CCC/Caa.......................................................... 9.1
CC/Ca............................................................ 0.4
C/C.............................................................. 0.1
D................................................................ 0.5
N/R.............................................................. 7.5
-------
Subtotal 89.9
Equities and Other............................................... 10.1
-------
Total.......................................................... 100.0%
-------
-------
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
- ---------
JUNE 30, 1999
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
- -----------------
DOMESTIC SECURITIES (76.5%)
- --------------------------------------------------------------------------------------------
- -----------------
CORPORATE OBLIGATIONS (66.0%)
- --------------------------------------------------------------------------------------------
- -----------------
AUTOMOTIVE (0.9%)
Cambridge Industries, Inc.
Sr. Sub. Notes
10.25%, 7/15/07 B3 $ 250 $ 204,375
Collins & Aikman Products,
Corp.
Sr. Sub. Notes
11.50%, 4/15/06 B3 250 252,500
(1) Oxford Automotive, Inc.
Gtd. Sr. Sub. Notes
10.125%, 6/15/07 Caa1 250 250,625
------------
GROUP TOTAL 707,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
BROADCASTING (6.3%)
(2) Acme Television, L.L.C./ ACME
Financial Corp. Gtd.
Sr. Discount Notes
0.00%, 9/30/04 B3 500 410,625
(2)(3) Australis Holdings Pty. Ltd.
Yankee Sr. Secured Discount
Notes
0.00%, 11/1/02 N/R 650 6,500
(2)(3) Australis Media Ltd.
Yankee Units
15.75%, 5/15/03 C 729 3,644
Capstar Broadcasting Partners,
Inc.:
Sr. Sub. Notes
9.25%, 7/1/07 B2 200 206,750
(2) Sr. Discount Notes
0.00%, 2/1/09 N/R 500 422,500
Chancellor Media Corp.
Sr. Notes
8.00%, 11/1/08 Ba2 200 196,000
Digital Television Services,
Inc./DTS Capital, Inc.
Series B, Gtd. Sr. Sub. Notes
12.50%, 8/1/07 B3 250 279,062
(1)(2) EchoStar Communications Corp.
Gtd. Sr. Discount Notes
9.375%, 2/1/09 B2 400 408,000
Granite Broadcasting, Inc.
Sr. Sub. Notes
8.875%, 5/15/08 B3 250 242,500
Pegasus Media &
Communications, Inc.
Series B, Notes
12.50%, 7/1/05 B2 250 274,375
Sinclair Broadcast Group,
Inc.:
Sr. Sub. Notes
10.00%, 9/30/05 B2 300 306,000
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Sr. Sub. Notes
8.75%, 12/15/07 B2 $ 250 $ 245,000
(2) Spanish Broadcasting System,
Inc.
Sr. Notes
7.50%, 6/15/02 B3 250 277,812
(2) United International Holdings,
Inc.
Series B, Sr. Discount Notes
0.00%, 2/15/08 B3 500 330,000
Univision Network Holding,
L.P.
Sub. Notes
7.00%, 12/17/02 N/R 573 690,555
Young Broadcasting, Inc.:
Series B, Gtd. Sr. Sub. Notes
9.00%, 1/15/06 B2 200 196,000
8.75%, 6/15/07 B2 450 436,500
------------
GROUP TOTAL 4,931,823
------------
- --------------------------------------------------------------------------------------------
- -----------------
BUSINESS SERVICES (0.6%)
General Binding Corp.
Gtd. Sr. Sub. Notes
9.375%, 6/1/08 B2 250 236,563
Iron Mountain, Inc.
Sr. Notes
8.75%, 9/30/09 B3 250 246,875
------------
GROUP TOTAL 483,438
------------
- --------------------------------------------------------------------------------------------
- -----------------
CABLE (6.9%)
(1)(2) Avalon Cable Holdings, Inc.
Units
0.00%, 12/1/08 Caa1 500 334,375
CSC Holdings, Inc.
Sr. Sub. Deb.
9.875%, 2/15/13 B1 250 270,000
Century Communications Corp.
Sr. Notes
8.75%, 10/1/07 Ba3 250 247,500
Charter Communications
Holdings:
(1) Sr. Notes
8.625%, 4/1/09 B2 200 192,000
(1)(2) Sr. Discount Notes
0.00%, 4/1/11 B3 300 186,375
Comcast Corp. Sr. Sub. Notes
9.125%, 10/15/06 B2 250 266,095
(2) Comcast UK Cable Partners,
Ltd.
Yankee Sr. Debentures
0.00%, 11/15/07 B2 500 450,000
(2) DIVA Systems Corp.
Series B, Sr. Discount Notes
12.625%, 3/1/08 N/R 810 273,375
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(2) Diamond Cable Communications
plc
Yankee Discount Notes
0.00%, 12/15/05 Caa1 $ 300 $ 267,750
(2) Falcon Holdings Group,
L.P./Falcon Funding Corp.
Sr. Discount Debentures
0.00%, 4/15/10 B2 500 346,875
Helicon Group, L.P.
Series B, Sr. Secured Notes
11.00%, 11/1/03 B1 200 208,500
InterMedia Capital Partners IV
L.P./ InterMedia Partners
Capital Corp.
Sr. Notes
11.25%, 8/1/06 B2 250 283,750
(2) International CableTelevision
Sr. Notes
0.00%, 2/1/06 B3 500 435,000
James Cable Partners L.P.
Series B, Sr. Notes
10.75%, 8/15/04 N/R 100 106,250
Lenfest Communications, Inc.
Sr. Sub. Notes
10.50%, 6/15/06 B2 350 402,500
NTL Communications Corp.
Series B, Sr. Sub. Notes
10.00%, 2/15/07 B3 250 258,750
(2) 0.00%, 10/1/08 B3 250 167,500
OpTel, Inc. Series B, Sr.
Notes
13.00%, 2/15/05 B3 250 195,000
Rifkin Acquisitions Partners
L.P.
Sr. Sub. Notes
11.125%, 1/15/06 B3 250 276,875
(2) Telewest Communications plc
Yankee Sr. Sub. Discount
Debentures
0.00%, 10/1/07 B1 250 222,500
------------
GROUP TOTAL 5,390,970
------------
- --------------------------------------------------------------------------------------------
- -----------------
CHEMICALS (1.3%)
Huntsman Corp.:
Sr. Sub. Notes
9.50%, 7/1/07 B2 250 239,375
Sr. Notes
11.75%, 12/1/04 B1 400 434,000
NL Industries, Inc.
Sr. Secured Notes
11.75%, 10/15/03 B1 150 159,000
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Texas Petrochemical Corp.
Series B, Sr. Sub. Notes
11.125%, 7/1/06 N/R $ 200 $ 181,000
------------
GROUP TOTAL 1,013,375
------------
- --------------------------------------------------------------------------------------------
- -----------------
CONSTRUCTION & BUILDING MATERIALS (0.7%)
American Architectural
Products Corp.
Gtd. Sr. Notes
11.75%, 12/01/07 Caa1 250 189,375
Brand Scaffold Services
Sr. Notes
10.25%, 2/15/08 B3 150 146,813
Presley Companies
Sr. Notes
12.50%, 7/1/01 Caa3 250 222,500
------------
GROUP TOTAL 558,688
------------
- --------------------------------------------------------------------------------------------
- -----------------
CONSUMER PRODUCTS & SERVICES (2.7%)
(2) Coinstar, Inc.
Sr. Discount Notes
0.00%, 10/1/06 Caa1 350 345,188
Holmes Products Corp.
Gtd. Sr. Sub. Notes
9.875%, 11/15/07 B3 200 192,000
Jordan Industries, Inc.
Series B, Sr. Notes
10.375%, 8/1/07 B3 225 227,813
Knology Holdings, Inc.
Sr. Discount Notes
0.00%, 10/15/07 N/R 250 151,250
Playtex Products, Inc.
Series B, Gtd. Sr. Notes
8.875%, 7/15/04 B1 200 202,500
Revlon Consumer Products Corp.
Series B, Sr. Sub. Notes
8.625%, 2/1/08 B3 250 236,250
Signature Brands USA, Inc.
Sr. Sub. Notes
13.00%, 8/15/02 B3 500 533,100
(3)(4) Town & Country Corp.
Sr. Sub. Notes
13.00%, 5/31/98 N/R 616 0
(2) United Rentals, Inc.
Sr. Sub. Notes
9.25%, 1/15/09 B1 250 248,125
------------
GROUP TOTAL 2,136,226
------------
- --------------------------------------------------------------------------------------------
- -----------------
ELECTRONICS (1.3%)
Details, Inc.
Series B, Sr. Sub Notes
10.00%, 11/15/05 B3 250 237,500
Unisys Corp.
Sr. Notes
11.75% 10/15/04 B1 100 111,000
Verio, Inc.
Units
13.50%, 6/15/04 B3 400 440,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Viasystems, Inc.
Sr. Sub. Notes
9.75%, 6/1/07 B3 $ 250 $ 218,750
------------
GROUP TOTAL 1,007,250
------------
- --------------------------------------------------------------------------------------------
- -----------------
ENERGY (3.5%)
Belden & Blake Energy Co.
Series B, Gtd. Sr. Sub. Notes
9.875%, 6/15/07 B3 200 152,500
Bellwether Exploration Co.
Gtd. Sr. Sub. Notes
10.875%, 4/1/07 B3 250 239,375
Canadian Forest Oil, Ltd.
Sr. Sub. Notes
8.75%, 9/15/07 B2 250 239,375
Cliffs Drilling Co.
Series D, Gtd. Sr. Notes
10.25%, 5/15/03 B1 250 243,750
Continental Resources, Inc.
Gtd. Sr. Notes
10.25%, 8/1/08 B3 150 112,125
(3) Dailey International, Inc.
Series B, Gtd. Sr.
Unsecured Notes
9.50%, 2/15/08 Ca 250 161,875
Dual Drilling Co.
Gtd. Sr. Sub. Notes
9.875%, 1/15/04 Baa3 250 262,550
Energy Corp. of America
Series A, Sr. Sub. Notes
9.50%, 5/15/07 B2 250 228,750
H.S. Resources, Inc.
Gtd. Sr. Sub. Notes
9.25%, 11/15/06 B2 250 246,250
Kelley Oil & Gas Corp.
Sr. Secured Notes
14.00%, 4/15/03 B3 250 254,063
(1) Key Energy Services, Inc.
Sr. Sub. Notes
14.00%, 1/15/09 B3 250 256,875
Southwest Royalties, Inc.
Series B, Gtd. Sr. Notes
10.50%, 10/15/04 B3 250 119,375
(3) TransAmerican Energy Corp.
Series B, Sr. Secured Notes
11.50%, 6/15/02 B3 200 19,000
Wiser Oil Co.
Gtd. Sr. Sub. Notes
9.50%, 5/15/07 B2 250 207,500
------------
GROUP TOTAL 2,743,363
------------
- --------------------------------------------------------------------------------------------
- -----------------
ENTERTAINMENT (3.1%)
American Skiing Co.
Series B, Sr. Sub. Notes
12.00%, 7/15/06 B3 200 159,500
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Bally Total Fitness Holding
Corp.
Series D, Sr. Sub. Notes
9.875%, 10/15/07 B3 $ 150 $ 145,500
Booth Creek Ski Holdings, Inc.
Series B, Sr. Notes
12.50%, 3/15/07 Caa1 250 221,875
Cinemark U.S.A., Inc.
Series D, Sr. Sub. Notes
9.625%, 8/1/08 B2 200 198,500
Genmar Holdings, Inc.
Series A, Sr. Sub. Notes
13.50%, 7/15/01 Caa2 500 500,000
(2) IHF Holdings, Inc.
Series B, Sr. Sec. Discount
Notes
0.00%, 11/15/04 Caa2 300 36,000
PTI Holdings, Inc.
Sub. Notes
7.00%, 12/17/02 N/R 507 610,833
(1)(3) Premier Cruises, Ltd.
Sr. Notes
11.00%, 3/15/08 B3 250 74,375
Production Resource Group,
L.L.C./PRG Finance Group
Gtd. Sr. Sub. Notes
11.50%, 1/15/08 Caa2 250 251,875
Regal Cinemas, Inc.
Sr. Sub. Notes
8.875%, 12/15/10 N/R 250 230,625
------------
GROUP TOTAL 2,429,083
------------
- --------------------------------------------------------------------------------------------
- -----------------
FINANCIAL SERVICES (0.1%)
(3) Westfed Holdings
Sr. Debentures
15.50%, 9/15/99 N/R 250 87,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
FOOD & BEVERAGES (0.8%)
AmeriServ Food Distribution,
Inc.
Gtd. Sr. Notes
8.875%, 10/15/06 B1 200 182,000
Archibald Candy Corp.
Gtd. Sr. Secured Notes
10.25%, 7/1/04 B2 250 252,500
(1) Fleming Companies, Inc.
Sr. Sub. Notes
10.50%, 12/1/04 B3 200 190,000
------------
GROUP TOTAL 624,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
HEALTH CARE (0.8%)
(1) ICN Pharmaceutical
Sr. Notes
8.75%, 11/15/08 Ba3 250 250,625
(1) Insight Health Services Corp.
Gtd. Sr. Sub. Notes
9.625%, 6/15/08 B3 200 191,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Integrated Health Services,
Inc.
Sr. Sub. Notes
9.25%, 1/15/08 B2 $ 250 $ 179,375
------------
GROUP TOTAL 621,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
INDUSTRIAL GOODS & MATERIALS (3.2%)
Applied Extrusion Technologies
Corp.
Sr. Notes
11.50%, 4/1/02 B2 250 255,000
Atlantis Group, Inc.
Sr. Notes
11.00%, 2/15/03 B2 250 252,500
Delco Remy International, Inc.
Gtd. Sr. Sub. Notes
10.625%, 8/1/06 B2 250 257,500
Golden Ocean Group, Ltd.
Gtd. Sr. Notes
10.00%, 8/31/01 B3 513 80,798
(1) Hayes Lemmerz International,
Inc.
Gtd. Sr. Notes
8.25%, 12/15/08 B2 250 237,500
Haynes International, Inc.
Sr. Notes
11.625%, 9/1/04 B3 250 237,500
Park-Ohio Industries, Inc.
Sr. Sub. Notes
9.25%, 12/1/07 B2 200 200,000
Romacorp., Inc.
Sr. Notes
12.00%, 7/1/06 B3 250 243,437
SRI Receivables Purchase Co.,
Inc.
Series B, Notes
12.50%, 12/15/00 N/R 500 495,000
(1) Transportation Manufacturing
Operations
Sr. Sub. Notes
11.25%, 5/1/09 B2 250 249,375
------------
GROUP TOTAL 2,508,610
------------
- --------------------------------------------------------------------------------------------
- -----------------
MEDICAL (0.2%)
(1)(5) Triad Hospitals Holdings
11.00%, 5/15/09 B3 200 203,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
METALS & MINING (2.5%)
Algoma Steel, Inc.
Yankee First Mortgage Notes
12.375%, 7/15/05 B1 250 242,500
Gulf States Steel, Inc.
First Mortgage Notes
13.50%, 4/15/03 B1 250 45,000
Metallurg, Inc.
Series B, Gtd. Sr. Notes
11.00%, 12/1/07 B3 250 244,375
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
National Steel Corp.
Series D
First Mortgage Bonds
9.875%, 3/1/09 Ba3 $ 250 $ 253,750
Republic Engineered Steel,
Inc.
First Mortgage Bonds
9.875%, 12/15/01 Caa1 250 250,625
Sheffield Steel Corp.
Series B, First Mortgage
Bonds
11.50%, 12/1/05 Caa2 250 236,875
WCI Steel, Inc.
Series B,
Sr. Secured Notes
10.00%, 12/1/04 B2 250 254,375
Weirton Steel Corp.
Sr. Notes
11.375%, 7/1/04 B2 200 196,000
Wheeling-Pittsburg Corp.
Sr. Notes
9.25%, 11/15/07 B2 250 240,000
------------
GROUP TOTAL 1,963,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
PACKAGING/CONTAINERS (2.9%)
AEP Industries, Inc.
Sr. Sub. Notes
9.875%, 11/15/07 B2 400 400,000
BWAY Corp.
Gtd. Sr. Sub. Notes
10.25%, 4/15/07 B2 150 157,500
Container Corp. of America
Gtd. Sr. Notes
9.75%, 4/1/03 B1 250 258,750
(2) Crown Packaging Enterprises,
Ltd.
Yankee Sr. Secured Discount
Notes
0.00%, 8/1/06 Ca1 925 13,875
Gaylord Container Corp.
Series B, Sr. Notes
9.75%, 6/15/07 B3 250 239,375
Plastic Containers, Inc.
Series B, Sr. Secured Notes
10.00%, 12/15/06 B1 250 281,875
Radnor Holdings, Inc.
Series B, Gtd. Sr. Notes
10.00%, 12/1/03 B2 400 402,000
Riverwood International Corp.
Gtd. Sr. Notes
10.875%, 4/1/08 Caa1 250 242,500
Stone Container Finance Co.
Yankee Gtd. Sr. Notes
11.50%, 8/15/06 B2 250 269,375
------------
GROUP TOTAL 2,265,250
------------
- --------------------------------------------------------------------------------------------
- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
PAPER & FOREST PRODUCTS (1.7%)
Ainsworth Lumber Co., Ltd.
Yankee Sr. Secured Notes
12.50%, 7/15/07 B3 $ 250 $ 278,125
Color Spot Nurseries
Sr. Sub. Notes
10.50%, 12/15/07 Caa1 200 149,500
Crown Paper Co.
Sr. Sub. Notes
11.00%, 9/1/05 B3 100 66,000
Malette, Inc.
Yankee Sr. Secured Debentures
12.25%, 7/15/04 Ba3 150 159,750
SD Warren Co.
Debentures
14.00%, 12/15/06 N/A 603 677,869
------------
GROUP TOTAL 1,331,244
------------
- --------------------------------------------------------------------------------------------
- -----------------
PUBLISHING & INFORMATION SERVICES (2.6%)
(1)(5) American Media Operation
10.25% 5/1/09 Caa 250 250,313
Ampex Corp.
Series B, Sr. Notes
12.00%, 3/15/03 N/R 250 260,000
(1)(2) InterAct Systems, Inc.
Sr. Discount Notes
0.00%, 8/1/03 N/R 400 147,500
Level 3 Communication, Inc.:
Sr. Notes
9.125%, 5/1/08 B3 275 270,531
(2) Sr. Discount Notes
0.00%, 12/1/08 B3 300 184,875
(2) Liberty Group Publishing,
Inc.
Sr. Discount Debentures
0.00%, 2/1/09 Caa1 300 162,000
Mentus Media Corp.
Units
12.00%, 2/1/03 N/R 391 254,150
Tri-State Outdoor Media Group,
Inc.
Sr. Notes
11.00%, 5/15/08 N/R 300 304,500
(1) TV Guide, Inc.
Sr. Sub. Notes
8.125%, 3/1/09 Ba3 200 189,500
------------
GROUP TOTAL 2,023,369
------------
- --------------------------------------------------------------------------------------------
- -----------------
RESTAURANTS, HOTELS & GAMING (4.0%)
American Restaurant Group,
Inc.
Gtd. Sr. Secured Notes
11.50%, 2/15/03 B3 250 225,625
(1) Aztar Corp.
Sr. Sub. Notes
8.875%, 5/15/07 B1 250 239,375
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Casino Magic of Louisiana,
Corp.
Series B, Gtd. First Mortgage
Notes
13.00%, 8/15/03 B3 $ 300 $ 344,250
(4) Colorado Gaming &
Entertainment Co.
Gtd. Sr. Notes
12.00%, 6/1/03 N/R 443 447,535
Friendly Ice Cream Corp.
Gtd. Sr. Notes
10.50%, 12/1/07 B1 250 221,875
HMH Properties
Gtd. Sr. Secured Notes
7.875%, 8/1/08 Ba2 250 229,375
Hard Rock Hotel, Inc.
Sr. Sub. Notes
9.25%, 4/1/05 B3 250 235,000
Hollywood Park, Inc.
Sr. Sub. Notes
9.50%, 8/1/07 B2 200 198,500
Horseshoe Gaming, L.L.C.
(1) Sr. Sub Notes
8.625%, 5/15/09 B2 250 241,875
Series B, Sr. Sub. Notes
9.375%, 6/15/07 B1 300 304,500
Mohegan Tribal Gaming
Authority
Series B, Sr. Secured Notes
8.125%, 1/1/06 Ba1 200 195,500
Prime Hospitality Corp.
Secured First Mortgage Notes
9.25%, 1/15/06 Ba2 250 251,875
------------
GROUP TOTAL 3,135,285
------------
- --------------------------------------------------------------------------------------------
- -----------------
RETAIL (2.4%)
(2) Advance Holdings Corp.
Sr. Discount Debentures
0.00%, 4/15/09 Caa2 350 197,312
Advance Stores Co., Inc.
Gtd. Sr. Sub. Notes
10.25%, 4/15/08 Caa1 150 144,000
(1)(3) County Seat Stores, Inc.
Units
12.75%, 11/1/04 N/R 250 25,000
Dairy Mart Convenience Stores,
Inc.
Sr. Sub. Notes
10.25%, 3/15/04 B3 251 235,313
Jitney-Jungle Stores of
America, Inc.:
Gtd. Sr.Notes
12.00%, 3/1/06 B3 250 205,000
Gtd. Sr. Sub. Notes
10.375%, 9/15/07 B2 250 87,500
K Mart Corp.
Debentures
7.75%, 10/1/12 Ba2 200 201,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(2) Mrs. Fields Holding Co.
Units
0.00%, 12/1/05 Caa2 $ 500 $ 242,500
Pantry, Inc.
Sr. Sub. Notes
10.25%, 10/15/07 B3 200 204,000
Pathmark Stores, Inc.
Sr. Sub. Notes
9.625%, 5/1/03 Caa1 100 102,000
(1) Simmons Co.
Sr. Sub. Notes
10.25%, 3/15/09 B3 250 254,375
------------
GROUP TOTAL 1,898,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
TELECOMMUNICATIONS (15.1%)
Adelphia Communications
Sr. Notes
8.375%, 2/1/08 B1 200 198,000
(1)(5) Caprock Communications Series
11.50%, 5/01/09 B3 150 151,875
Carrier1
Units
13.25%, 2/15/09 B3 300 318,000
(2) Clearnet Communications, Inc.
Yankee Sr. Discount Notes
0.00%, 12/15/05 B3 250 227,500
Concentric Network Corp.
Sr. Notes
12.75%, 12/15/07 N/R 250 258,125
(2) DTI Holdings, Inc.
Units
0.00%, 3/1/08 N/R 300 109,500
Dobson/Sygnet Communications
Co.
Sr. Notes
12.25%, 12/15/08 N/R 250 264,375
(2) Dolphin Telecom plc
Sr. Discount Notes
0.00%, 6/1/08 Caa1 250 125,000
(1) 0.00%, 5/15/09 Caa1 300 148,125
(2) e. spire Communications, Inc.
Sr. Discount Notes
0.00%, 11/1/05 N/R 750 397,500
(2) Econophone, Inc.
Sr. Discount Notes
0.00%, 2/15/08 N/R 500 278,750
Exodus Communications, Inc.
Sr. Notes
11.25%, 7/1/08 N/R 50 52,000
(2) Focal Communications Corp.
Sr. Discount Notes
0.00%, 2/15/08 N/R 200 110,000
(2) GST USA, Inc.
Gtd. Sr. Discount Notes
0.00%, 12/15/05 N/R 600 494,250
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Global Crossing Holdings Ltd.
Gtd. Sr. Notes
9.625%, 5/15/08 N/R $ 250 $ 270,000
Globalstar L.P./Globalstar
Capital Corp.
Sr. Notes
10.75%, 11/1/04 B3 300 200,250
Globix Corp.
Sr. Notes
13.00%, 5/1/05 N/R 250 237,500
(2) ICG Holdings, Inc.:
Sr. Discount Notes
13.50%, 9/15/05 N/R 350 308,000
11.625%, 3/15/07 N/R 750 517,500
(2) ICG Services, Inc.
Gtd. Sr. Discount Notes
0.00%, 5/1/08 N/R 250 132,500
Intermedia Communications,
Inc.:
(2) Series B, Sr. Discount Notes
0.00%, 7/15/07 B2 300 213,000
Sr. Notes
8.875%, 11/1/07 B2 150 137,625
Jacor Communications, Inc.
Gtd. Sr. Sub. Notes
8.00%, 2/15/10 B2 250 259,688
(2) Jordan Telecommunications
Products, Inc.
Series B, Sr. Discount Notes
0.00%, 8/1/07 B3 250 213,125
McCaw International Ltd.
Sr. Discount Notes
13.00%, 4/15/07 Caa1 250 147,500
McLeod USA, Inc.:
(2) Sr. Discount Notes
0.00%, 3/1/07 B2 200 198,500
Sr. Notes
9.25%, 7/15/07 B2 100 76,750
MetroNet Communications Corp.
Sr. Discount Notes
10.75%, 11/1/07 B 350 280,875
(2) 0.00%, 6/15/08 B3 250 185,937
(2) Millicom International
Cellular
Yankee Sr. Sub. Discount
Notes
0.00%, 6/1/06 Caa1 300 221,625
NEXTLINK Communications, Inc.:
Sr. Notes
12.50%, 4/15/06 B3 100 107,000
10.75%, 11/15/08 B3 250 255,000
(2) Nextel Communications, Inc.
Sr. Discount Notes
0.00%, 2/15/08 B2 900 621,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Orion Network Systems, Inc.
Gtd. Sr. Notes
11.25%, 1/15/07 B2 $ 250 $ 209,375
(2) PLD Telekom, Inc.
Yankee Gtd. Sr. Notes
0.00%, 6/1/04 N/R 560 308,000
(2) Pagemart Nationwide, Inc.
Sr. Discount Notes
0.00%, 2/1/05 B3 750 644,062
(1) Petersburg Long Distance, Inc.
Conv. Sub. Notes
9.00%, 6/1/06 N/R 80 32,000
Price Communications
Corp./Price Communications
Cellular Holdings, Inc.
Sr. Discount Notes
11.25%, 8/15/08 Caa1 212 218,023
(2) Qwest Communications
International, Inc.
Sr. Discount Notes
0.00%, 10/15/07 B2 250 192,187
(2) RCN Corp.
Series B,
Sr. Discount Notes
0.00%, 2/15/08 B3 300 190,125
RSL Communications:
Yankee Gtd. Senior Notes
9.125%, 3/1/08 B3 250 228,125
Rhythms Netconnections
Units
13.50%, 5/15/08 N/R 500 266,250
Sprint Spectrum, L.P./ Sprint
Spectrum Finance Corp.
Sr. Notes
11.00%, 8/15/06 B2 450 510,668
Star Choice Communications,
Inc.
Yankee Sr. Notes
13.00%, 12/15/05 N/R 200 203,500
Startec Global Communications
Corp.
Units
12.00%, 5/15/08 N/R 350 314,125
T/SF Communications Corp
Series B, Gtd. Sr. Sub. Notes
10.375%, 11/1/07 B3 200 201,000
(2) USN Communications, Inc.
Units
0.00%, 8/15/04 N/R 3 0
Western Wireless Corp.
Sr. Sub. Notes
10.50%, 2/1/07 B3 250 269,688
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(2) WinStar Communications, Inc.
Sr. Discount Notes
0.00%, 10/15/05 Caa1 $ 400 $ 351,000
------------
GROUP TOTAL 11,854,503
------------
- --------------------------------------------------------------------------------------------
- -----------------
TEXTILES/APPAREL (0.3%)
Maxim Group, Inc.
Gtd. Sr. Sub. Notes
9.25%, 10/15/07 B2 250 245,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
TRANSPORTATION (1.7%)
AirTran Airlines, Inc.
Sr. Notes
10.50%, 4/15/01 N/R 500 486,250
Canadian Airlines Corp.
Sr. Notes
12.25%, 8/1/06 Caa2 300 125,250
Cenargo International plc
First Priority Ship Mortgage
Notes
9.75%, 6/15/08 Ba3 100 90,625
(2) TFM Sa De CV
0.00%, 06/15/09 N/R 850 506,813
Trans World Airlines, Inc.
Sr. Notes
11.375%, 3/1/06 Caa1 250 128,125
------------
GROUP TOTAL 1,337,063
------------
- --------------------------------------------------------------------------------------------
- -----------------
WASTE MANAGEMENT (0.4%)
(1) Waste Systems International,
Inc.
Sr. Notes
11.50%, 1/15/06 Caa1 350 348,250
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $56,598,004) 51,848,790
------------
- --------------------------------------------------------------------------------------------
- -----------------
COLLATERALIZED MORTGAGE OBLIGATIONS (0.3%)
<CAPTION>
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Asset Securitization Corp.
Series 1996-MD6, Class A6,
7.59%, 11/13/26
(cost $233,342) Baa2 230 222,094
------------
- --------------------------------------------------------------------------------------------
- -----------------
ASSET BACKED OBLIGATIONS (1.5%)
<CAPTION>
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Green Tree Financial Corp.
Manufactured Housing
Installment Sale Contracts:
Series 1993-4, Class B1
7.20%, 1/15/19 Aaa 882 862,702
Series 1995-6, Class A3
6.65%, 9/15/26 Aaa 4 4,454
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
Merrill Lynch Home Equity
Acceptance Trust
Series 1994-A, Class A-2
5.93%, 7/17/22 A3 $ 212 $ 206,125
Nationscredit Grantor Trust
Boat Retail Installment Sale
Contracts
Series 1996-1, Class A
5.85%, 9/15/11 Aaa 95 93,891
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL ASSET BACKED OBLIGATIONS
(Cost $1,200,317) 1,167,172
<CAPTION>
- -------------------------------------------------------------------------------------------
- -----------------
Shares/
Units
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
- -----------------
COMMON STOCKS (3.8%)
<CAPTION>
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
BROADCASTING (0.2%)
(6) Spanish Broadcasting
System Class A 214 128,400
------------
- --------------------------------------------------------------------------------------------
- -----------------
CABLE (0.0%)
(6) OpTel, Inc. 250 3
------------
- --------------------------------------------------------------------------------------------
- -----------------
CONSUMER PRODUCTS & SERVICES (0.3%)
(6) Coinstar, Inc. 4,196 120,373
(6) Concentric Network Corp. 3,170 126,008
Crown Packaging Holdings, Ltd. 100,848 1,008
------------
GROUP TOTAL 247,389
------------
- --------------------------------------------------------------------------------------------
- -----------------
FINANCIAL SERVICES (0.0%)
(6)(7) Westfed Holdings, Inc.
Class B (acquired 9/20/88,
$127) 4,223 0
------------
- --------------------------------------------------------------------------------------------
- -----------------
FOOD & BEVERAGES (1.7%)
(6)(7) Dr. Pepper Bottling Holdings,
Inc.
Class A (acquired 10/21/88,
cost $40,500) 45,000 1,327,500
(6) Specialty Foods Corp. 22,500 1,125
------------
GROUP TOTAL 1,328,625
------------
- --------------------------------------------------------------------------------------------
- -----------------
INDUSTRIAL GOODS & MATERIALS (0.3%)
(6)(7)(8) CIC I Acquisition Corp.
(acquired 10/18/89, cost
$1,076,715) 2,944 200,192
------------
- --------------------------------------------------------------------------------------------
- -----------------
METALS & MINING (0.0%)
(6) Sheffield Steel Corp. 2,500 10,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
PAPER & FOREST PRODUCTS (0.2%)
(1)(6)(8) Mail-Well, Inc. 10,652 172,429
------------
- --------------------------------------------------------------------------------------------
<CAPTION>
Shares/ Value
Units (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
- -----------------
RESTAURANTS, HOTELS & GAMING (0.1%)
(6) Elsinore Corp. 6,178 $ 1,931
(6) Isle of Capri Casinos, Inc. 4,982 34,251
(1)(6) Motels of America, Inc. 250 4,500
------------
GROUP TOTAL 40,682
------------
- --------------------------------------------------------------------------------------------
- -----------------
TELECOMMUNICATIONS (1.0%)
(6) Advanced Radio Telecom Corp. 5,058 72,709
(6) Globix Corp. 880 38,885
(6) ICG Communications, Inc. 1,155 24,685
(6) Intermedia Communications,
Inc. 2,842 85,261
(6) Loral Space & Communications
Co. 151 2,719
(6) Nextel Communications, Inc.,
Class A 1,180 59,222
(6) Pagemart Nationwide, Inc. 3,500 16,626
(6) Price Communications Corp. 7,349 110,229
(6) Verio, Inc. 5,633 391,492
------------
GROUP TOTAL 801,828
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL COMMON STOCKS
(Cost $1,410,855) 2,929,548
------------
- --------------------------------------------------------------------------------------------
- -----------------
PREFERRED STOCKS (3.9%)
- --------------------------------------------------------------------------------------------
- -----------------
AEROSPACE/DEFENSE (0.4%)
(6) GPA Group plc
7% Second Preference Cum.
Conv. 650,000 325,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
BROADCASTING (1.0%)
(4)(6) Granite Broadcasting Corp.
12.75%, Cum. Exchangeable 11 10,605
(6) Source Media, Inc. 4,723 92,099
(4)(6) Spanish Broadcasting System,
Inc.
13.50%, Cum. Exchangeable 6,545 710,132
------------
GROUP TOTAL 812,836
------------
- --------------------------------------------------------------------------------------------
- -----------------
CABLE (0.4%)
Adelphia Communications Corp.
13% Cum. Exchangeable,
Series B 2,500 286,250
NTL, Inc.
13% Exchangeable, Series B 1 1,189
------------
GROUP TOTAL 287,439
------------
- --------------------------------------------------------------------------------------------
- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
Shares/ Value
Units (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
CONSUMER PRODUCTS & SERVICES (0.0%)
(4)(3) Renaissance Cosmetics, Inc.
14% Cumulative 3 $ 0
------------
- --------------------------------------------------------------------------------------------
- -----------------
FINANCIAL SERVICES (0.0%)
(8) Westfed Holdings, Inc.
Class A (aquired
9/20/88-6/18/93, cost
$1,203,486) 14,246 14,246
------------
- --------------------------------------------------------------------------------------------
- -----------------
MISCELLANEOUS (0.0%)
(6) TCR Holdings Corp.
Series B 351 21
Series C (non-voting) 193 11
Series D (non-voting) 509 27
Series E (non-voting) 1,053 66
------------
GROUP TOTAL 125
------------
- --------------------------------------------------------------------------------------------
- -----------------
PUBLISHING & INFORMATION SERVICES (0.5%)
Primedia, Inc.
10% Cum. Exchangeable,
Series D 3,500 358,750
------------
- --------------------------------------------------------------------------------------------
- -----------------
RESTAURANTS, HOTELS & GAMING (0.2%)
AmeriKing, Inc.
13%, Cum. Exchangeable 6,451 154,824
------------
- --------------------------------------------------------------------------------------------
- -----------------
TELECOMMUNICATIONS (1.4%)
Intermedia Communications,
Inc.
7% Jr. Convertible, Series E 15,000 350,625
NEXTLINK Communications, Inc.
14% Cum. Exchangeable 8,177 417,037
Nextel Communications, Inc.
13% Exchangeable, Series D 317 320,599
------------
GROUP TOTAL 1,088,261
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL PREFERRED STOCKS
(Cost $3,689,801) 3,041,481
------------
- --------------------------------------------------------------------------------------------
- -----------------
RIGHTS (0.0%)
<CAPTION>
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(6) Terex Corp. expiring 5/15/02
(Cost $0) 2,000 28,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
WARRANTS (1.0%)
- --------------------------------------------------------------------------------------------
- -----------------
(6) American Telecasting, Inc.
expiring 6/23/99 350 0
(6) Ampex Corp.
expiring 3/15/03 8,500 23,885
(6) Australis Holdings Pty. Ltd.
expiring 10/30/01 250 3
<CAPTION>
Shares/ Value
Units (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(6) Australis Media Ltd.
expiring 5/15/00 225 $ 2
(6) CHC Helicopter Corp.
expiring 12/15/00 2,000 6,000
(6)(8) CHI Energy, Inc.:
Series B, expiring 11/8/03 3,790 9,100
Series C, expiring 11/8/05 2,459 5,904
(6) Cookies U.S.A., Inc.
expiring 1/15/01 90 0
(6) Crown Packaging Holdings, Ltd.
expiring 11/1/03 1,000 500
(6) DIVA Systems Corp.
expiring 5/15/06 900 217,800
expiring 3/1/08 2,430 29,160
(6) DTI Holdings, Inc.
expiring 3/1/08 1,500 15
(6) Dairy Mart Convenience Stores,
Inc.
expiring 12/1/01 4,172 1,460
(6) e. spire Communications, Inc.
expiring 11/1/05 1,000 140,000
(6)(7) Elsinore Corp.
expiring 12/31/25 5,329 0
(6) Golden Ocean Group, Ltd.
expiring 8/31/01 342 43
(6) Hemmeter Enterprises, Inc.
expiring 12/15/99 3,000 0
(6) Interact Systems, Inc.
expiring 8/1/03 400 0
(6) Isle of Capri Casinos, Inc.
expiring 5/3/01 882 9
(1)(6) Key Energy Services
expiring 1/15/09 250 250
(6) McCaw International Ltd.
expiring 4/15/07 750 1,875
(6) Mentus Media Corp.
expiring 2/1/08 1,034 10
(6) Nigeria Warrants 11/15/20 250 0
(6) Petersburg Long Distance, Inc.
expiring 6/01/06 560 2,800
(6) Rhythms Netconnections
expiring 5/15/08 2,000 333,438
(6) Signature Brands Ltd.
expiring 8/15/02 500 0
(6) Source Media, Inc.
expiring 11/1/07 2,235 18,998
(6) Star Choice Communications,
Inc.
expiring 12/5/05 4,632 11,670
(6) Startec Global Communications
expiring 5/15/08 350 350
(6) United International Holdings
expiring 11/15/99 600 600
(6) Waste Systems International,
Inc.
expiring 3/2/04 5,250 3,465
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
Shares/ Value
Units (Note A-1)
- -------------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(6) Wright Medical Technology
expiring 6/30/03 206 $ 2
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL WARRANTS
(Cost $783,014) 807,339
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL DOMESTIC SECURITIES
(Cost $63,915,333) 60,044,424
------------
<CAPTION>
- --------------------------------------------------------------------
- -------------
Face
Moody's Amount
Ratings (000)
- ---------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
FOREIGN SECURITIES (20.6%)
- --------------------------------------------------------------------------------------------
- -----------------
CORPORATE OBLIGATIONS (2.0%)
- --------------------------------------------------------------------------------------------
- -----------------
ARGENTINA (0.1%)
CIA Internacional
Telecommunicacoes
Sr. Notes
10.375%, 8/1/04 N/R ARP $ 145 111,288
------------
- --------------------------------------------------------------------------------------------
- -----------------
BELGIUM (0.3%)
Hermes Europe Railtel B.V.
Sr. Notes
10.375%, 1/15/09 N/R USD 250 253,125
------------
- --------------------------------------------------------------------------------------------
- -----------------
INDONESIA (0.4%)
(2) App Fin II Mauritius Ltd.
Yankee,
12.00%, 12/29/49 B2 USD 270 177,525
Indah Kiat Fin Mauritius
10.00%, 7/01/07 Caa1 USD 250 174,375
------------
351,900
------------
- --------------------------------------------------------------------------------------------
- -----------------
MEXICO (1.0%)
Banco Nacional de Comercio
7.25%, 02/02/04 Ba2 825 750,750
------------
- --------------------------------------------------------------------------------------------
- -----------------
NETHERLANDS (0.2%)
(1)(2) CompleTel Europe N.V.
Units
14.00%, 2/15/09 Caa1 USD 250 130,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $1,605,664) 1,597,063
------------
- --------------------------------------------------------------------------------------------
- -----------------
GOVERNMENT OBLIGATIONS (18.6%)
- --------------------------------------------------------------------------------------------
- -----------------
ARGENTINA (3.4%)
Argentina
9.75%, 9/19/27 Ba3 USD 270 202,162
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- ---------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(9) Bocon PRO1 Notes
2.88%, 4/1/07 Ba3 USD $ 946 $ 661,674
(2) Secured Par Bonds,
Series L-GP
5.75%, 3/31/23 Ba3 USD 1,000 638,750
Republic of Argentina:
11.00%, 10/9/06 Ba3 USD 50 46,187
Debentures
6.188%, 3/31/05 B1 USD 1,307 1,116,532
------------
GROUP TOTAL 2,665,305
------------
- --------------------------------------------------------------------------------------------
- -----------------
BRAZIL (4.3%)
Federal Republic of Brazil:
Series RG
5.9375%, 4/15/09 B2 USD 330 230,175
Debentures
Series EI-L
Bearer
5.875%, 4/15/06 B2 USD 162 127,383
Registered
5.875%, 4/15/06 B2 USD 1,596 1,256,850
10.125%, 5/15/27 B1 USD 15 10,931
Capitalization Bonds
8.00%, 4/15/14 B1 USD 2,122 1,382,045
Discount Bond
5.875%, 4/15/24 N/R USD 610 386,587
------------
GROUP TOTAL 3,393,971
------------
- --------------------------------------------------------------------------------------------
- -----------------
BULGARIA (0.5%)
Republic of Bulgaria:
(2) Floating Rate Notes
2.50%, 7/28/12 B2 USD 215 236,437
(1)(9) Front Loaded Interest
Reduction Bonds, Series A
5.875%, 7/28/24 B2 USD 390 145,662
------------
GROUP TOTAL 382,099
------------
- --------------------------------------------------------------------------------------------
- -----------------
COLOMBIA (0.2%)
Republic of Colombia
Yankee Notes
9.705%, 8/13/05 Baa3 USD 190 162,925
------------
- --------------------------------------------------------------------------------------------
- -----------------
CROATIA (0.2%)
(9) Republic of Croatia
Floating Rate Notes
5.813%, 7/31/10 Baa3 USD 205 162,975
------------
- --------------------------------------------------------------------------------------------
- -----------------
ECUADOR (0.3%)
Government of Ecuador:
(9) Bearer Past Due Interest
(PDI)
6.00%, 2/27/15 B3 USD 578 189,925
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- ---------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
(9) Registered Past Due Interest
(PDI)
6.00%, 2/27/15 B3 USD $ 92 $ 30,369
------------
GROUP TOTAL 220,294
------------
- --------------------------------------------------------------------------------------------
- -----------------
MEXICO (2.9%)
United Mexican States:
9.75%, 4/06/05 Ba2 USD 275 272,250
10.375%, 2/17/09 N/R USD 550 556,875
11.50%, 5/15/26 Ba2 USD 980 1,072,470
Secured Par Bonds Series W-A
6.25%, 12/31/19 Ba2 USD 500 366,869
------------
GROUP TOTAL 2,268,464
------------
- --------------------------------------------------------------------------------------------
- -----------------
MOROCCO (0.3%)
Republic of Morocco
5.90625%, 1/1/09 N/R USD 290 232,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
NIGERIA (0.2%)
(9) Central Bank of Nigeria
6.25%, 11/15/20 N/R USD 250 152,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
PERU (0.8%)
Republic of Peru:
Front Loaded Interest
Reduction Bonds
Series 20 year
3.75%, 3/7/17 N/R USD 540 298,350
Past Due Interest (PDI)
Series 20 year
4.00%, 3/7/17 N/R USD 495 304,425
------------
GROUP TOTAL 602,775
------------
- --------------------------------------------------------------------------------------------
- -----------------
PHILIPPINES (0.8%)
Republic of the Philippines
Bonds
9.875%, 1/15/19 Ba1 USD 625 612,500
------------
- --------------------------------------------------------------------------------------------
- -----------------
POLAND (0.4%)
Republic of Poland Treasury
Bills:
Series 26
0%, 08/11/1999 N/R PLN 900 225,920
Series 52
0%, 08/04/1999 N/R PLN 340 85,506
------------
GROUP TOTAL 311,426
------------
- --------------------------------------------------------------------------------------------
- -----------------
RUSSIA (1.6%)
Government of Russia
9.25%, 11/27/01 B3 USD 115 77,194
Russia Federation Reg Series
8.75%, 7/24/05 B3 USD 550 269,500
<CAPTION>
Face
Moody's Amount Value
Ratings (000) (Note A-1)
- ---------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
10.00%, 06/26/07 B3 USD $ 520 $ 260,000
11.00%, 7/24/18 B3 USD 250 122,500
Russian Registered Bonds
12.75%, 6/24/28 B3 USD 400 225,500
(9) Vnesheconombank Bank
6.0625% , 12/15/15 N/R USD 690 107,847
Series 24 Year
6.0625%, 12/15/20 N/R USD 1,802 204,707
------------
GROUP TOTAL 1,267,248
------------
- --------------------------------------------------------------------------------------------
- -----------------
TURKEY (0.3%)
Government of Turkey
Treasury Bill
0.00%, 7/21/99 N/R TRL 108,747 247,400
------------
- --------------------------------------------------------------------------------------------
- -----------------
VENEZUELA (2.4%)
Republic of Venezuela:
(9) Front Loaded Interest
Reduction Bonds, Series A
6.00%, 3/31/07 B2 USD 381 292,379
(9) Debt Conversion Bonds,
Series DL
6.3125%, 12/18/07 B2 USD 512 395,766
Unsecured Bonds
9.25%, 9/15/27 Ba2 USD 1,850 1,239,500
------------
GROUP TOTAL 1,927,645
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL GOVERNMENT OBLIGATIONS
(Cost $14,015,045) 14,609,527
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL FOREIGN SECURITIES
(Cost $15,620,709) 16,206,590
------------
- --------------------------------------------------------------------------------------------
- -----------------
TIME DEPOSITS (1.1%)
(Cost $878,000) 878,000
------------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL INVESTMENTS (98.2%)
(Cost $80,414,042) 77,129,014
------------
- --------------------------------------------------------------------------------------------
- -----------------
OTHER ASSETS IN EXCESS OF
LIABILITIES (1.8%)
1,391,329
------------
- --------------------------------------------------------------------------------------------
- -----------------
NET ASSETS (100%)
Applicable to 8,454,140 issued and outstanding $.001 par value
Shares (authorized 100,000,000 shares) $ 78,520,343
------------
------------
<CAPTION>
- ---------------------------------------------------------------------------------------
- -----------------
<C> <S> <C> <C> <C>
N/R--Not Rated
ARP--Argentine Peso
PLN--Polish Zloty
TRL--Turkish Lira
(1) 144A Security. Certain conditions for public sale may exist.
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
<TABLE>
<C> <S> <C> <C> <C>
(2) Step Bond--Coupon rate is low or zero for an initial period and then increases to
a higher coupon rate thereafter. Maturity date disclosed is the ultimate maturity.
(3) Defaulted Security.
(4) Payment in kind bond. Market value includes accrued interest.
(5) Private Placement.
(6) Non-income producing security.
(7) Restricted as to private and public resale. Total cost of restricted securities
at June 30, 1999 aggregated $1,117,342. Total market value of restricted
securities owned at June 30, 1999 was $1,527,692 or 1.9% of Net Assets.
(8) Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by the Boad of Directors.
(9) Floating Rate--The interest rate changes on these instruments based upon a
designated base rate. The rates shown are those in effect at June 30, 1999.
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES June 30, 1999
(Unaudited)
<S> <C>
- ---------------------------------------------------------------------------------------------------
ASSETS:
Investments at Value
(Cost $80,414,042 (Note A-1).............................................. $77,129,014
RECEIVABLES:
Interest (Note A-6)......................................................... 1,575,640
Investments Sold............................................................ 48,542
Other Assets.................................................................... 8,895
- ---------------------------------------------------------------------------------------------------
Total Assets............................................................ 78,762,091
- ---------------------------------------------------------------------------------------------------
LIABILITIES:
Investment Advisory Fees (Note B)........................................... 97,721
Shareholders' Reports....................................................... 44,037
Professional Fees........................................................... 20,582
Administrative Fees (Note C)................................................ 19,943
Shareholder Servicing Fees.................................................. 12,338
Unrealized Depreciation on Forward
Foreign Currency Exchange Contracts (Note A-5)............................. 10,623
Directors' Fees............................................................. 9,020
Custodian Fees.............................................................. 4,194
Due to Custodian Bank....................................................... 17,668
Other Liabilities........................................................... 5,622
- ---------------------------------------------------------------------------------------------------
Total Liabilities....................................................... 241,748
- ---------------------------------------------------------------------------------------------------
NET ASSETS...................................................................... $78,520,343
-----------------
-----------------
NET ASSETS CONSIST OF:
Capital Shares at $.001 Par Value........................................... $ 8,454
Capital Paid in Excess of Par Value......................................... 89,457,023
Undistributed Net Investment Income......................................... 514,999
Accumulated Net Realized Loss............................................... (8,164,482)
(3,295,651)
Unrealized Depreciation on
Investments and Foreign Currency Translations..............................
NET ASSETS APPLICABLE TO 8,454,140 ISSUED
AND OUTSTANDING SHARES (AUTHORIZED
100,000,000 SHARES)........................................................... $78,520,343
-----------------
-----------------
NET ASSET VALUE PER SHARE....................................................... $ 9.29
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS Six Months Ended
June 30, 1999
(Unaudited)
<S> <C>
- --------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest (Note A-6)
(Net of foreign taxes withheld of $26,898)................................ $4,027,941
Dividends (Note A-6)........................................................ 33,750
- --------------------------------------------------------------------------------------------------
Total Income.............................................................. 4,061,691
- --------------------------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees (Note B)........................................... 193,210
Shareholders' Reports....................................................... 77,911
Administrative Fees (Note C)................................................ 39,194
Custodian Fees.............................................................. 31,856
Professional Fees........................................................... 22,083
Directors' Fees and Expenses................................................ 18,956
Shareholder Servicing Fees.................................................. 16,222
Other....................................................................... 15,954
- --------------------------------------------------------------------------------------------------
Total Expenses............................................................ 415,386
- --------------------------------------------------------------------------------------------------
Net Investment Income................................................... 3,646,305
- --------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS):.......................................................
- --------------------------------------------------------------------------------------------------
Investments................................................................. (1,358,693)
Foreign Currency............................................................ 110,891
- --------------------------------------------------------------------------------------------------
Total Net Realized Loss................................................... (1,247,802)
- --------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION/ DEPRECIATION:
Investments................................................................. 1,734,085
Foreign Currency Translations............................................... (1,117)
- --------------------------------------------------------------------------------------------------
Total Change in Unrealized Appreciation/Depreciation...................... 1,732,968
- --------------------------------------------------------------------------------------------------
Net Realized Loss and Change in Unrealized Appreciation/Depreciation............ 485,166
- --------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations............................ $4,131,471
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income....................................................... $ 3,646,305 $ 7,929,213
Net Realized Loss on Investments............................................ (1,247,802) (5,939,600)
Change in Unrealized Appreciation/Depreciation on Investments and Foreign
Currency................................................................... 1,732,968 (6,663,506)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................. 4,131,471 (4,673,893)
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income....................................................... (4,121,394) (8,010,301)
- ----------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets................................... 10,077 (12,684,194)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period......................................................... 78,510,266 91,194,460
- ----------------------------------------------------------------------------------------------------------------------
End of Period (Including undistributed net investment income of $514,999 and
$990,088, respectively).................................................... $78,520,343 $ 78,510,266
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, 1999 ----------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (Unaudited) 1998 1997 1996 1995Section 1994
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $ 9.29 $ 10.79 $ 10.37 $ 10.01 $ 9.26 $ 10.45
- ---------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income.......... 0.43 0.94 0.89 0.91 0.95 0.95
Net Realized and Unrealized
Gain (Loss) on Investments.... 0.06 (1.49) 0.41 0.26 0.61 (1.33)
- ---------------------------------------------------------------------------------------------------------
Total from Investment
Activities.................. 0.49 (0.55) 1.30 1.17 1.56 (0.38)
- ---------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income.......... (0.49) (0.95) (0.88) (0.81) (0.76) (0.62)
Return of Capital.............. -- -- -- -- (0.05) (0.19)
- ---------------------------------------------------------------------------------------------------------
Total Distributions.......... (0.49) (0.95) (0.88) (0.81) (0.81) (0.81)
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD..... $ 9.29 $ 9.29 $ 10.79 $ 10.37 $ 10.01 $ 9.26
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
PER SHARE MARKET VALUE, END OF
PERIOD............................ $ 8.88 $ 8.63 $ 10.06 $ 9.00 $ 8.88 $ 8.25
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN:
Net Asset Value (1)............ 5.82% (5.13)% 13.82% 13.27% 17.57% (3.80)%
Market Value................... 8.92% (5.56)% 22.34% 11.03% 18.16% (4.72)%
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Net Assets, End of Period
(Thousands)....................... $78,520 $78,510 $91,914 $87,656 $84,618 $78,252
- ---------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net
Assets Including Expense
Offsets........................... 1.07%* 1.17% 1.08% 1.11% 1.12% 0.99%
Ratio of Expenses to Average Net
Assets............................ 1.07%* 1.17% 1.10% 1.11% -- --
Ratio of Net Investment Income to
Average Net Assets................ 9.44%* 9.17% 8.43% 8.99% 9.80% 9.66%
Portfolio Turnover Rate............ 26.5% 107.8% 119.1% 65.1% 54.5% 83.1%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Section Credit Suisse Asset Management, formerly known as BEA Associates
replaced CS First Boston Investment Management as the Fund's
investment adviser effective June 13, 1995.
* Annualized
(1) Total investment return based on per share net asset value reflects
the effects of change in net asset value on the performance of the
Fund during each period, and assumes dividends and capital gains
distributions, if any, were reinvested. These percentages are not an
indication of the performance of a shareholder's investment in the
Fund based on market value, due to differences between the market
price of the stock and the net asset value of the Fund.
Note: Current period permanent book-tax differences, if any, are not
included in the calculation of net investment income per
share.
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------
Credit Suisse Asset Management Strategic Global Income Fund, Inc., formerly
known as BEA Strategic Global Income Fund, Inc. (the "Fund"), was incorporated
on January 27, 1988 and is registered as a diversified, closed-end investment
company under the Investment Company Act of 1940. The Fund's investment
objective is to seek high current income through investments primarily in debt
securities.
A. The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. Generally accepted
accounting principles may require management to make estimates and assumptions
that affect the amounts and disclosures in the financial statements. Actual
reported results could differ from those estimates.
1. SECURITY VALUATION: Market values for fixed income securities are valued at
the latest quoted bid price in the over-the-counter market. However, fixed
income securities may be valued on the basis of prices provided by a pricing
service which are based primarily on institutional size trading in similar
groups of securities. Other securities listed on an exchange are valued at
the latest quoted sales prices on the day of valuation or if there was no
sale on such day, the last bid price quoted on such day. Quotations of
foreign security prices denominated in a foreign currency are converted to
U.S. dollars at the current exchange rate on valuation date. Securities
purchased with remaining maturities of 60 days or less are valued at
amortized cost, if it approximates market value. Securities for which market
quotations are not readily available (including investments which are subject
to limitations as to their sale) are valued at fair value as determined in
good faith by the Board of Directors. Such securities have a value of
$229,442 (or 0.3% of net assets) at June 30, 1999. In determining fair value,
consideration is given to cost, operating and other financial data.
The Fund may invest up to 10% of its total assets in securities which are not
readily marketable, including those which are restricted as to disposition
under securities law ("restricted securities") (excludes 144A securities).
These securities are valued pursuant to the valuation procedures noted above.
2. FEDERAL INCOME TAXES: It is the Fund's intention to continue to qualify as a
regulated investment company and distribute all of its taxable income to
shareholders. Accordingly, no provision for Federal income taxes is required
in the financial statements.
3. REPURCHASE AGREEMENTS: In connection with transactions in repurchase
agreements, a bank as custodian for the Fund takes possession of the
underlying securities, the value of which exceeds the principal amount of the
repurchase transaction, including accrued interest. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to determine the adequacy of the
collateral. In the event of default on the obligation to repurchase, the Fund
has the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral
and proceeds may be subject to legal proceedings.
4. FOREIGN CURRENCY TRANSLATION: The books and records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at the bid price of such currencies against U.S. dollars last quoted
by a major bank as follows:
- investments, other assets and liabilities at the prevailing rates of
exchange on the valuation date;
- investments, transactions and investment income at the prevailing rates of
exchange on the dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange
rates and market values at the close of the period, the Fund does not isolate
that portion of the results of operations arising as a result of changes in
the foreign exchange rates from the fluctuations arising from changes in the
market prices of the securities held at period end. Similarly the fund does
not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of securities sold
during the period. Accordingly, realized and unrealized foreign currency gains
(losses) are included in the reported net realized and unrealized gains
(losses) on investment transactions and balances.
Net realized gains/losses on foreign currency transactions represent net
foreign exchange gains/losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains or losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of investment income and foreign
withholding taxes recorded on the Fund's books and the U.S. dollar equivalent
amounts actually received or paid. Net currency gains (losses) from valuing
foreign currency denominated assets and liabilities at period end exchange
rates are included in unrealized depreciation of investments and foreign
currency.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. dollar denominated
transactions as a result of, among other factors, the level of governmental
supervision and regulation of foreign securities markets and the possibility
of political or economic instability.
5. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: The Fund may enter into forward
foreign currency exchange contracts to protect securities and related
receivables and payables against changes in future foreign exchange
19
<PAGE>
rates. A forward currency contract is an agreement between two parties to buy
or sell currency at a set price on a future date. The market value of the
contract will fluctuate with changes in currency exchange rates. The contract
is marked-to-market daily using the forward rate and the change in market
value is recorded by the Fund as unrealized gain or loss. The Fund recognizes
realized gain or loss when the contract is closed 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. Risks may arise upon entering into these contracts
from the potential inability of counterparties to meet the terms of their
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
The Fund had the following outstanding forward foreign currency exchange
contracts at June 30, 1999.
<TABLE>
<CAPTION>
FORWARD FOREIGN VALUE AT UNREALIZED
CURRENCY EXCHANGE SETTLEMENT SETTLEMENT CURRENT APPRECIATION
CONTRACTS DATE DATE VALUE (DEPRECIATION)
- --------------------- ----------- ----------- --------- ---------------
<S> <C> <C> <C> <C>
Purchase Contract:
South African Rand 8/18/99 $ 229,252 $ 234,507 $ 5,255
Sale Contract:
South African Rand 8/18/99 218,903 234,781 (15,878)
---------------
Net Unrealized Depreciation of Forward Foreign Currency
Contracts $ (10,623)
---------------
---------------
</TABLE>
6. SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
accounted for on the date the securities are purchased or sold. Costs used in
determining realized gains and losses on the sale of investment securities
are those of specific securities sold. Interest income is recognized on the
accrual basis. Discounts on securities purchased are amortized according to
the effective yield method over their respective lives. Discount or premium
on mortgage backed securities is recognized upon receipt of principal
payments on the underlying mortgage pools. Dividend income is recorded on the
ex-dividend date.
7. DELAYED DELIVERY COMMITMENTS: The Fund may purchase or sell securities on a
when-issued or forward commitment basis. Payment and delivery may take place
a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered and
paid for are fixed at the time the transaction is negotiated.
8. DIVIDENDS AND DISTRIBUTIONS: The Fund pays dividends of net investment income
monthly and makes distributions at least annually of any net capital gains in
excess of applicable capital losses, including capital loss carryforward.
Dividends and distributions are recorded on the ex-dividend date.
Income distributions and capital gain distributions are determined in
accordance with U.S. Federal Income Tax regulations which may differ from
generally accepted accounting principles. These differences are principally
due to the timing of the recognition of defaulted bond interest and to
differing book and tax treatment for foreign currency transactions.
Permanent book and tax differences relating to shareholder distributions may
result in reclassifications to undistributed net investment income (loss),
undistributed realized gain (loss) and paid in capital.
B. Credit Suisse Asset Management, formerly known as BEA Associates (the
"Adviser"), provides investment advisory services to the Fund under the terms of
an Advisory Agreement. Under the Advisory Agreement, the Adviser is paid a fee,
computed weekly and payable quarterly at an annual rate of .50% of average
weekly net assets.
C. Effective March 1, 1999, Brown Brothers Harriman & Co. ("BBH&Co."), replaced
Chase Manhattan Bank as the Fund's Administrator and Custodian.
BBH&Co. provides services to the fund. Under the Administration and Custody
Agreements, BBH&Co. is paid a fee based on average net assets.
Effective January 25, 1999, BankBoston N.A. replaced Chase Manhattan Bank as the
Fund's Transfer Agent.
BankBoston provides transfer agent services to the fund. Under the Transfer
Agent Agreement, BankBoston is paid a fee based on the number of accounts in the
Fund per year. In addition, the Fund was charged certain out-of-pocket expenses
by BankBoston.
D. During the six months ended June 30, 1999, the Fund made purchases of
$20,144,427 and sales of $21,913,035 of investment securities other than U.S.
Government securities and short term investments. At June 30, 1999, the cost of
investments for Federal income tax purposes was $79,536,042. Accordingly, net
unrealized depreciation for Federal income tax purposes aggregated $3,285,028,
of which $6,619,186 related to appreciated securities and $9,904,214 related to
depreciated securities.
At June 30, 1999, the Fund had a capital loss carryforward of $5,708,744
available to offset future capital gains of which $90,877, $743,988, and
$211,706, $4,334 and $4,657,819 will expire on December 31, 2000, 2002, 2003,
2004, 2005 and 2006 respectively.
E. At June 30, 1999, 66% of the Fund's net assets comprised high-yield fixed
income securities. The financial condition of the issuers of the securities and
general economic conditions may affect the issuers' ability to make payments of
income and principal, as well as the market value of the securities. Such
investments may also be less liquid and more volatile than investments in higher
rated fixed income securities.
At June 30, 1999, 20.6% of the Fund's net assets comprised foreign currency
denominated fixed income securities. Changes in currency exchange rates will
affect the value and net investment income from such securities.
20
<PAGE>
F. The Fund's Board of Directors has approved a share repurchase program
authorizing the Fund from time to time to make open-market purchases on the New
York Stock Exchange of up to 10 percent of the Fund's shares outstanding as of
December 11, 1990. There were no repurchases of shares during the six months
ended June 30, 1999.
G. On July 30, 1999, the Fund filed a registration statement to issue to its
shareholders rights entitling them to subscribe for shares of the Fund's Common
Stock at a rate of one share of Common Stock for each three rights held.
H. Effective July 27, 1999, the Fund entered into a credit agreement with
Deutsche Bank AG and State Street Bank and Trust Company.
21
<PAGE>
SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED):
<TABLE>
<CAPTION>
AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS
THREE MONTHS ENDED
----------------------------------------------------------------------------
MARCH 31, 1999 JUNE 30, 1999
----------------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income............. $ 2,057 $ 0.24 $ 2,005 $ 0.24
Net Investment Income......... 1,841 0.22 1,805 0.21
Net Realized Gain (Loss) and
Change in Unrealized
Appreciation/Depreciation on
Investments and Foreign
Currency..................... 204 0.03 281 0.03
Net Increase in Net Assets
Resulting from Operations.... 2,045 0.25 2,086 0.24
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
MARCH 31, 1998 JUNE 30, 1998 1998 1998
----------------- ------------------ ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income............. $ 2,309 $ 0.27 $ 2,208 $ 0.26 $ 2,163 $ 0.26 $ 2,255 $ 0.27
Net Investment Income......... 2,049 0.24 1,912 0.23 1,931 0.23 2,037 0.24
Net Realized Gain (Loss) and
Change in Unrealized
Appreciation/Depreciation on
Investments.................. 2,428 0.29 (2,809) (0.33) (11,239) (1.28) (983) (0.17)
Net Increase/Decrease in Net
Assets Resulting from
Operations................... 4,477 0.53 (897) (0.10) (9,689) (1.15) 1,436 0.17
</TABLE>
SUPPLEMENTAL PROXY INFORMATION (UNAUDITED)
The Annual Meeting of the Stockholders of the Credit Suisse Asset Management
Strategic Global Income Fund, Inc. was held on Monday, May 10, 1999 at the
offices of Willkie Farr & Gallagher, 787 7th Avenue, New York City. The
following is a summary of each proposal presented and the total number of shares
voted:
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
PROPOSAL FAVOR OF AGAINST ABSTAINED
- ------------------------------------------------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
1. To elect the following four Directors:
Enrique R. Arzac 7,314,343 102,068 --
Lawrence J. Fox 7,328,561 87,850 --
James S. Pasman, Jr. 7,319,300 97,111 --
William W. Priest, Jr. 7,326,261 90,150 --
2. To ratify the selection of
PricewaterhouseCoopers LLP as independent
public accountants of the Fund until the next
annual meeting. 7,297,548 58,973 59,890
3. To approve an amendment to the Fund's
Articles of Incorporation to change the name
of the Fund to Credit Suisse Asset Management
Strategic Global Income Fund, Inc. 7,038,978 235,109 142,323
</TABLE>
22
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM
- ---------
The InvestLink-SM- Program is sponsored and administered by BankBoston, N.A.,
not by Credit Suisse Asset Management Strategic Global Income Fund, Inc. (the
"Fund"). BankBoston, N.A. will act as program administrator (the "Program
Administrator") of the InvestLink-SM- Program (the "Program"). The purpose of
the Program is to provide interested investors with a simple and convenient way
to invest funds and reinvest dividends in shares of the Fund's common stock
("Shares") at prevailing prices, with reduced brokerage commissions and fees.
An interested investor may join the Program at any time. Purchases of Shares
with funds from a participant's cash payment or automatic account deduction will
begin on the next day on which funds are invested. If a participant selects the
dividend reinvestment option, automatic investment of dividends generally will
begin with the next dividend payable after the Program Administrator receives
his enrollment form. Once in the Program, a person will remain a participant
until he terminates his participation or sells all Shares held in his Program
account, or his account is terminated by the Program Administrator. A
participant may change his investment options at any time by requesting a new
enrollment form and returning it to the Program Administrator.
A participant will be assessed certain charges in connection with his
participation in the Program. First-time investors will be subject to an initial
service charge which will be deducted from their initial cash deposit. All
optional cash deposit investments will be subject to a service charge. Sales
processed through the Program will have a service fee deducted from the net
proceeds, after brokerage commissions. In addition to the transaction charges
outlined above, participants will be assessed per share processing fees (which
include brokerage commissions.) Participants will not be charged any fee for
reinvesting dividends.
The number of Shares to be purchased for a participant depends on the amount
of his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
Program Administrator uses dividends and funds of participants to purchase
Shares of the Fund's common stock in the open market. Such purchases will be
made by participating brokers as agent for the participants using normal cash
settlement practices. All Shares purchased through the Program will be allocated
to participants as of the settlement date, which is usually three business days
from the the purchase date. In all cases, transaction processing will occur
within 30 days of the receipt of funds, except where temporary curtailment or
suspension of purchases is necessary to comply with applicable provisions of the
Federal Securities laws or when unusual market conditions make prudent
investment impracticable. In the event the Program Administrator is unable to
purchase Shares within 30 days of the receipt of funds, such funds will be
returned to the participants.
The average price of all Shares purchased by the Program Administrator with
all funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period.
BankBoston, N.A., as Program Administrator, administers the Program for
participants, keeps records, sends statements of account to participants and
performs other duties relating to the Program. Each participant in the Program
will receive a statement of his account following each purchase of Shares. The
statements will also show the amount of dividends credited to such participant's
account (if applicable), as well as the fees paid by the participant. In
addition, each participant will receive copies of the Fund's annual and
semi-annual reports to shareholders, proxy statements and, if applicable,
dividend income information for tax reporting purposes.
If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.
Shares of the Fund purchased under the Program will be registered in the
name of the accounts of the respective participants. Unless requested, the Fund
will not issue to participants certificates for Shares of the Fund purchased
under the Program. The Program Administrator will hold the Shares in book-entry
form until a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.
A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.
Participation in any rights offering, dividend distribution or stock split
will be based upon both the Shares of the Fund registered in participants' names
and the Shares (including
23
<PAGE>
fractional Shares) credited to participants' Program accounts. Any stock
dividend or Shares resulting from stock splits with respect to Shares of the
Fund, both full and fractional, which participants hold in their Program
accounts and with respect to all Shares registered in their names will be
automatically credited to their accounts.
All Shares of the Fund (including any fractional share) credited to his
account under the Program will be voted as the participant directs. The
participants will be sent the proxy materials for the annual meetings of
shareholders. When a participant returns an executed proxy, all of such Shares
will be voted as indicated. A participant may also elect to vote his Shares in
person at the Shareholders' meeting.
A participant will receive tax information annually for his personal records
and to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as to tax consequences of
participation in the Program, participants should consult with their own tax
advisors.
The Program Administrator in administering the Program will not be liable
for any act done in good faith or for any good faith omission to act. However,
the Program Administrator will be liable for loss or damage due to error caused
by its negligence, bad faith or willful misconduct. Shares held in custody by
the Program Administrator are not subject to protection under the Securities
Investors Protection Act of 1970.
The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's investment in Shares
held in his Program account is no different than his investment in directly held
Shares in this regard. The participant bears the risk of loss and the benefits
of gain from market price changes with respect to all of his Shares. Neither the
Fund nor the Program Administrator can guarantee that Shares purchased under the
Program will, at any particular time, be worth more or less than their purchase
price. Each participant must make an independent investment decision based on
his own judgment and research.
While the Program Administrator hopes to continue the Program indefinitely,
the Program Administrator reserves the right to suspend or terminate the Program
at any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.
Any interested investor may participate in the Program. To participate in
the Program, an investor who is not already a registered owner of the Shares
must make an initial investment of at least $250.00. All other cash payments or
bank account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including the terms and conditions) may be obtained by calling the
Program Administrator at one of the following telephone numbers: First Time
Investors-- (800) 523-8506; Current Shareholders--(800) 730-6001. All
correspondence regarding the Program should be directed to: BankBoston, N.A.,
InvestLink Program, P.O. Box 8040, Boston, MA 02266-8040.
- ------------------------------------------------------
*InvestLink is a service mark of Boston EquiServe Limited Partnership.
24
<PAGE>
4947-SAR-99
