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Previous: TOYOTA MOTOR CREDIT CORP, 424B3, 1995-03-21 |
Next: LIVE ENTERTAINMENT INC, 10-K, 1995-03-21 |
MERRILL LYNCH
GLOBAL
ALLOCATION
FUND, INC.
FUND LOGO
Quarterly Report
January 31, 1995
This report is not authorized for use as an offer of
sale or a solicitation of an offer to buy shares of the
Fund unless accompanied or preceded by the Fund's
current prospectus. Past performance results
shown in this report should not be considered a
representation of future performance. Investment
return and principal value of shares will fluctuate
so that shares, when redeemed, may be worth more
or less than their original cost.
<PAGE>
Merrill Lynch
Global Allocation
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC.
<TABLE>
Summary of
Fund's Overall
Asset Mix
As of 1/31/95
<CAPTION>
Percent of Fund's Portfolio Reference Portfolio
1/31/95 10/31/94 Percentages
<S> <C> <C> <C>
North & South American Equities* 22.4% 22.2% 36.0%
European Equities 10.3 11.0 9.6
Pacific Basin Equities* 4.5 4.8 14.4
Total Equities 37.2 38.0 60.0
US Dollar Denominated Fixed-Income Securities** 36.5 35.4 24.0
US Issuers 31.0 27.6 --
Non-US Issuers 5.5 7.8 --
Non-US Dollar Denominated Fixed-Income Securities** 23.0 24.1 16.0
Total Fixed-Income Securities 59.5++ 59.5 40.0
Cash & Cash Equivalents 3.3 2.5 --
<FN>
*Includes value of Stock Index Futures.
**Does not include value of segregated securities held as collateral for Stock Index Futures.
++Includes Preferred Stock.
</TABLE>
<PAGE>
DEAR SHAREHOLDER
During the January quarter, many
emerging equity and debt markets
suffered sharp selloffs. Some of the
smaller equity markets had begun to
suffer price erosion early in 1994 after
several years of sharp gains and greatly
expanded investor interest. Late in
the year, weakness in the Mexican cur-
rency and financial markets set off a
ripple of declines in other emerging
markets, especially in Latin America.
In Asia, this weakness was accentuated
by uncertainties over US/Chinese trade
relations and the effects of the Kobe
earthquake in Japan.
Certainly the most dramatic events
involved Mexico. The situation in
Mexico before and after the December
20, 1994 devaluation/float of the
Mexican peso is of interest for several
reasons. First, Mexico is an important
trading partner of the United States
and Mexico's economy is linked to ours
as well as to Canada's through the
North American Free Trade Agreement
(NAFTA). Second, the decline in
Mexican securities markets has been
linked to, or at least very much corre-
lated with, the declines that followed
in other emerging markets, not only
in Latin America but also around the
world. Third, the crisis was all the more
distressing because Mexico was widely
regarded as a model emerging economy
whose government had largely adhered
to policies that are attractive to foreign
investors, such as low fiscal deficits
and an increasingly market-oriented
economy.
<PAGE>
The Mexican crisis has been examined,
discussed and analyzed in every forum
from the financial press to the US
Congress. There was no single factor
that precipitated the crisis, but there
were several important contributing
factors. First, Mexico had run substan-
tial current account deficits for several
years, requiring inflows of foreign
capital and/or reductions in foreign
exchange reserves. Second, investors
had become very accustomed to an
exchange rate policy that largely linked
the peso to the US dollar through a
"crawling" or depreciating peg, which
created a stable, or at least a predict-
able, currency. Third, Mexico had issued
a substantial amount of short-term
credit instruments (tesobonos), and these
securities were largely held by foreign
investors. Finally, 1994 was an election
year in Mexico and was marked by two
political assassinations and unrest in the
southern state of Chiapas.
<PAGE>
As US short-term interest rates rose
throughout most of 1994, asset flows
to all emerging markets slowed. The
political problems in Mexico caused
foreign investors to begin to withdraw
assets from that country, leading to
falling foreign currency reserves. When
foreign currency reserves reached
critically low levels in December 1994,
policymakers attempted to devalue the
peso by about 15% while trying to
maintain the link to the US dollar. That
stabilization attempt failed very quickly.
The peso then plunged from its "new"
level (about 4 new pesos/US$ 1) and the
crisis ballooned. It became clear that
Mexico did not have sufficient reserves
to pay off all of its maturing short-term
dollar-linked tesobono debt and that
foreign investors could not be induced
to roll that debt over. At that point,
President Clinton stepped in and offered
US aid to Mexico in recognition of
the importance of a healthy Mexican
economy to US export performance. At
the time of this writing, the United
States and Mexico have signed an
agreement governing the extension of
US credit to Mexico. The International
Monetary Fund (IMF) and The Bank for
International Settlements (BIS) also
have come forward with loan packages.
These packages should provide Mexico
with sufficient liquidity to meet its
immediate problems. Going forward,
Mexican authorities will need to imple-
ment strict monetary and fiscal policies
to reassure investors.
<PAGE>
Merrill Lynch Global Allocation Fund,
Inc. began the January quarter with
2.8% of its net assets invested in US
dollar-denominated Mexican debt,
and with no exposure at all to peso-
denominated debt or equities. The Fund
also held dollar-denominated Argentine
and Brazilian bonds. The sharp price
declines that occurred even in dollar-
denominated Mexican fixed-income
securities made them more attractive
than alternative investment opportunities.
As a result, we increased our investments
in dollar-denominated Mexican fixed-
income securities to 3.3% of net assets.
Also, post-devaluation we initiated a
position in cetes, the peso-denominated
Mexican government version of US Treasury
bills. (At quarter-end, cetes represented
0.7% of the Fund's net assets.) Although
the Mexican currency and short-term
debt markets remain very volatile, we
believe that extraordinarily high
interest rates (ranging from the high
20% area to the 50% area) and low
price of the peso, compensate the Fund
for the risk involved.
With the sharp drop in Mexican share
prices (the Bolsa lost about 27% of
its value in local currency terms
from the November 1994 high through
January month-end), we also began to
establish small positions in Mexican
equities during the quarter. In the past,
the Fund has held relatively little
exposure to emerging stock markets.
With much more attractive valuations
now available in Latin America and
elsewhere, we may expand investments
in these markets in the weeks and
quarters ahead.
<PAGE>
Asset Allocation Strategy
Maintained
The major global equity markets were
not immune from price declines during
the January quarter. Following the
strongest earthquake to hit Japan in
50 years, the Nikkei 225 stock index
declined by more than 10%, then
recovered somewhat to end the quarter
with a 6.5% decline. In contrast, US
equity prices were weak early in the
quarter, but ended the period virtually
unchanged. The major currency
markets were also fairly volatile. During
the first half of the quarter the US dollar
strengthened, but then gave back all
its gains to end the period virtually
unchanged relative to the Deutschemark.
As the January quarter neared its end,
investors began to sense that the pace
of US economic growth might be moder-
ating. This encouraged the conjecture
that short-term interest rates could be
near an intermediate-term peak. As of
January 31, the Fund's asset mix was
relatively unchanged from the end of
the prior quarter: 37.2% was invested in
equities and 59.5% in fixed-income
securities, with the balance in cash
and cash equivalents. We continue to
believe that at current prices fixed-
income investments have more attrac-
tive risk/return characteristics than
equities. Bonds have been out-of-favor
with investors since late 1993 and now
offer much higher interest rates than
one year ago. On the other hand, equity
markets have performed relatively well.
The US equity market in particular is
near its all-time high despite sharply-
increased yields on competing
investments. Compared to the Fund's
benchmark or reference portfolio, the
Fund is significantly overweighted in
bonds and underweighted in equities.
In Conclusion
We thank you for your investment in
Merrill Lynch Global Allocation Fund,
Inc., and we look forward to reviewing
our outlook and strategy with you again
in our next report to shareholders.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Bryan N. Ison)
Bryan N. Ison
Vice President and Portfolio Manager
March 6, 1995
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Donald C. Burke, Vice President
Bryan N. Ison, Vice President
Gerald M. Richard, Treasurer
Michael J. Hennewinkel, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
PERFORMANCE DATA
About Fund
Performance
Since October 21, 1994, investors have been able to purchase
shares of the Fund through the Merrill Lynch Select Pricing SM
System, which offers four pricing alternatives:
*Class A Shares incur a maximum initial sales charge (front-
end load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to
eligible investors.
*Class B Shares are subject to a maximum contingent deferred
sales charge of 4% if redeemed during the first year, decreas-
ing 1% each year thereafter to 0% after the fourth year. In
addition, Class B Shares are subject to a distribution fee of
0.75% and an account maintenance fee of 0.25%. These shares
automatically convert to Class D Shares after 8 years.
*Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares
are subject to a 1% contingent deferred sales charge if
redeemed within one year of purchase.
*Class D Shares incur a maximum initial sales charge of
5.25% and an account maintenance fee of 0.25% (but no distri-
bution fee).
Performance data for the Fund's Class A and Class B Shares are
presented in the "Performance Summary," "Recent Performance
Results" and "Average Annual Total Return" tables on pages 4,
5 and 6. Data for Class C and Class D Shares are also presented
in the "Recent Performance Results" and "Aggregate Total
Return" tables on pages 5 and 6.
The "Recent Performance Results" table shows investment
results before the deduction of any sales charges for Class A
and Class B Shares for the 12-month and 3-month periods
ended January 31, 1995 and for Class C and Class D Shares for
the since inception and 3-month periods ended January 31,
1995. All data in this table assume imposition of the actual
total expenses incurred by each class of shares during the
relevant period.
None of the past results shown should be considered a repre-
sentation of future performance. Investment return and principal
value of shares will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. Dividends
paid to each class of shares will vary because of the different
levels of account maintenance, distribution and transfer agency
fees applicable to each class, which are deducted from the
income available to be paid to shareholders.
<PAGE>
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
2/3/89-12/31/89 $10.00 $10.76 $0.199 $0.484 +14.64%
1990 10.76 9.89 0.237 0.854 + 1.88
1991 9.89 11.05 0.196 1.409 +28.75
1992 11.05 11.53 0.038 0.816 +12.19
1993 11.53 13.23 0.194 0.508 +21.01
1994 13.23 12.23 0.140 0.605 - 2.00
1/1/95-1/31/95 12.23 12.35 -- -- + 0.98
------ ------
Total $1.004 Total $4.676
Cumulative total return as of 1/31/95: +102.03%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital
gains distributions at net asset value on the ex-dividend
date, and do not include sales charge; results would be
lower if sales charge was included.
</TABLE>
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
2/3/89-12/31/89 $10.00 $10.75 $0.199 $0.392 +13.58%
1990 10.75 9.88 0.237 0.741 + 0.84
1991 9.88 11.03 0.196 1.300 +27.47
1992 11.03 11.47 0.038 0.731 +11.06
1993 11.47 13.11 0.194 0.409 +19.69
1994 13.11 12.12 0.140 0.479 - 2.89
1/1/95-1/31/95 12.12 12.22 -- -- +0.83
------ ------
Total $1.004 Total $4.052
Cumulative total return as of 1/31/95: +90.02%**
<PAGE>
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital
gains distributions at net asset value on the ex-dividend
date, and do not reflect deduction of any sales charge;
results would be lower if sales charge was deducted.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/94 - 2.00% - 7.15%
Five Years Ended 12/31/94 +11.78 +10.58
Inception (2/3/89) through 12/31/94 +12.45 +11.43
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/94 - 2.89% - 6.58%
Five Years Ended 12/31/94 +10.66 +10.66
Inception (2/3/89) through 12/31/94 +11.32 +11.32
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate
Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94)
through 12/31/94 - 2.58% - 3.51%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/21/94)
through 12/31/94 - 2.35% - 7.48%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
Net Asset Value Total Return
1/31/95 10/31/94 1/31/94++ 12-Month++ 3-Month
<S> <C> <C> <C> <C> <C>
ML Global Allocation Fund, Inc. Class A Shares* $12.35 $13.07 $13.67 -4.22%(1) -1.44%(2)
ML Global Allocation Fund, Inc. Class B Shares* 12.22 12.91 13.54 -5.20(3) -1.76(4)
ML Global Allocation Fund, Inc. Class C Shares* 12.18 12.91 12.91 -1.69(5) -1.69(5)
ML Global Allocation Fund, Inc. Class D Shares* 12.35 13.08 13.07 -1.47(6) -1.55(6)
US Stocks: Standard & Poor's 500 Index** +0.51 +0.31
Non-US Stocks: Financial Times--Actuaries World Index*** -4.31 -8.61
US Bonds: ML Government Index GA05**** -3.66 +1.65
Non-US Bonds: Salomon Brothers World Government Bond Index***** +7.83 +0.18
<PAGE>
<FN>
++Investment results shown for Class C and Class D Shares
are since inception (10/21/94).
*Investment results shown do not reflect sales charges;
results shown would be lower if a sales charge was
included.
**An unmanaged broad-based index comprised of common stocks.
Total investment returns for unmanaged indexes are
based on estimates.
***An unmanaged capitalization-weighted index comprised of over
1,800 companies in 24 countries, excluding the United States.
****An unmanaged index designed to track the total return of the
current coupon five-year US Treasury bond.
*****An unmanaged market capitalization-weighted index tracking 10
government bond indexes, excluding the United States.
(1)Percent change includes reinvestment of $0.605 per share ordinary
income dividends and $0.140 per share capital gains distributions.
(2)Percent change includes reinvestment of $0.386 per share ordinary
income dividends and $0.140 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.479 per share ordinary
income dividends and $0.140 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.320 per share ordinary
income dividends and $0.140 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.368 per share ordinary
income dividends and $0.140 per share capital gains distributions.
(6)Percent change includes reinvestment of $0.383 per share ordinary
income dividends and $0.140 per share capital gains distributions.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Australia Banking 2,645,800 Westpac Banking Corp. $ 5,614,396 $ 9,018,871 0.1%
Foods 7,916,000 Goodman Fielder Wattie Ltd. 8,324,587 7,255,608 0.1
Insurance 1,500,000 GIO Australia Holdings, Ltd. 2,567,209 2,681,550 0.0
Multi-Industry 1,500,000 Pacific Dunlop, Ltd. 4,092,789 3,488,288 0.1
Tobacco 2,099,800 Rothmans Holdings, Ltd. 7,893,919 6,998,633 0.1
1,242,300 WD & HO Wills Holdings, Ltd. 1,389,502 2,211,449 0.0
-------------- -------------- ------
9,283,421 9,210,082 0.1
Total Common Stocks in Australia 29,882,402 31,654,399 0.4
<PAGE>
Austria Utilities-- 174,750 Oesterreichische Elektrizitats AG
Electric (Verbund) 10,542,970 9,828,144 0.1
Total Common Stocks in Austria 10,542,970 9,828,144 0.1
Brazil Foods 284,500 Grupo Industrial Maseca (ADR)++ 3,685,558 4,089,688 0.1
Total Common Stocks in Brazil 3,685,558 4,089,688 0.1
Canada Beverage & Tobacco 600,000 Cott Corp. 5,712,145 5,250,000 0.1
Natural Resources 300,000 Canadian Pacific, Ltd. 3,503,161 4,087,500 0.1
Oil & Related 353,000 International Petroleum Corp. 1,000,196 419,188 0.0
Telecommunications 100,000 BCE Telecommunications, Inc. 3,375,484 3,000,000 0.0
Total Common Stocks in Canada 13,590,986 12,756,688 0.2
Denmark Banking 53,500 Unidanmark A/S 1,870,730 2,132,890 0.0
Total Common Stocks in Denmark 1,870,730 2,132,890 0.0
Finland Banking 4,194,000 Kansallis-Osake-Pankki 4,512,421 4,241,074 0.1
1,483,915 Unitas Bank Ltd. 4,285,282 3,673,596 0.0
-------------- -------------- ------
8,797,703 7,914,670 0.1
Metals 175,000 Outokumpu OY 1,920,901 3,304,311 0.0
Paper & Forest 480,000 Enso-Gutzeit OY 3,485,619 3,927,410 0.1
Products 33,500 Metsa-Serla OY 1,397,019 1,328,333 0.0
450,000 Repola OY S 5,925,368 7,930,347 0.1
-------------- -------------- ------
10,808,006 13,186,090 0.2
Total Common Stocks in Finland 21,526,610 24,405,071 0.3
France Automobiles 113,300 Peugeot S.A. 14,661,303 14,776,396 0.2
Banking 100,878 Compagnie Financiere de Paribas 7,150,761 6,194,364 0.1
86,500 Societe Generale 9,605,405 8,366,742 0.1
58,000 Societe Generale (New) 7,499,838 7,201,969 0.1
-------------- -------------- ------
24,256,004 21,763,075 0.3
<PAGE>
Insurance 89,900 GAN S.A. (Registered) 6,452,319 3,233,201 0.0
Multi-Industry 16,433 EuraFrance 4,256,713 4,827,416 0.1
Utilities 104,512 Compagnie Generale des Eaux 11,466,525 9,357,217 0.1
Total Common Stocks in France 61,092,864 53,957,305 0.7
Germany Banking 4,950 Bayerische Vereinsbank AG 1,181,909 1,354,163 0.0
Capital Goods 369,636 Kloeckner Werke AG 17,229,762 29,826,955 0.4
Chemicals 25,000 Basf AG 4,802,511 5,231,910 0.1
40,000 Bayer AG 7,415,746 9,223,906 0.1
-------------- -------------- ------
12,218,257 14,455,816 0.2
Insurance 7,860 Munich Reinsurance Co. (Ordinary) 14,055,714 12,994,292 0.2
Machinery & 57,179 Mannesmann AG 15,621,661 15,316,005 0.2
Equipment
Steel 92,100 Thyssen AG 11,715,893 17,642,984 0.2
Utilities-- 103,840 Veba AG 29,898,982 34,919,887 0.5
Electric
Total Common Stocks in Germany 101,922,178 126,510,102 1.7
Hong Kong Telecommuni- 1,180,000 Hong Kong Telecommunications Ltd. 754,179 2,074,725 0.0
cations
Utilities-- 676,800 China Light & Power Co., Ltd. 841,166 2,826,198 0.1
Electric
Total Common Stocks in Hong Kong 1,595,345 4,900,923 0.1
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Ireland Building & 1,065,600 CRH PLC $ 3,594,241 $ 5,899,780 0.1%
Construction
Miscellaneous-- 2,178,000 Waterford Wedgwood Units 1,080,827 1,970,149 0.0
Consumer Goods
Total Common Stocks in Ireland 4,675,068 7,869,929 0.1
<PAGE>
Italy Banking 533,400 IMI (Ordinary) 3,443,328 3,446,100 0.1
Building & 1,922,200 Filippo Fochi S.p.A. 6,101,165 3,015,099 0.0
Construction
Multi-Industry 7,639,495 Compagnie Industriali Riunite S.p.A. 6,443,269 8,613,563 0.1
(CIR)
Telecommuni- 3,000,000 Societa Finanziaria Telefonica
cations S.p.A. (STET) 4,365,656 9,392,763 0.1
11,181,363 Societa Finanziaria Telefonica
S.p.A. (STET) RISP 20,700,047 28,270,320 0.4
3,958,000 Societa Italiana Esercizio Telecom
S.p.A. (S.I.P.) 3,323,376 10,966,100 0.1
-------------- -------------- ------
28,389,079 48,629,183 0.6
Total Common Stocks in Italy 44,376,841 63,703,945 0.8
Japan Automobiles & 1,512,000 Suzuki Motor Corp. 13,245,256 14,070,423 0.2
Equipment 295,000 Toyota Motor Corp. 4,030,746 5,638,833 0.1
-------------- -------------- ------
17,276,000 19,709,256 0.3
Beverage 497,000 Chukyo Coca-Cola Bottling Co., Ltd. 6,342,434 5,300,000 0.1
358,000 Hokkaido Coca-Cola Bottling Co., Ltd. 4,698,844 4,429,980 0.0
573,000 Kinki Coca-Cola Bottling Co., Ltd. 9,468,770 7,436,318 0.1
468,000 Mikuni Coca-Cola Bottling Co., Ltd. 7,366,538 5,649,899 0.1
488,400 Sanyo Coca-Cola Bottling Co., Ltd. 6,660,269 6,928,008 0.1
-------------- -------------- ------
34,536,855 29,744,205 0.4
Capital Goods 3,608,000 Mitsubishi Heavy Industries, Ltd. 21,963,469 24,392,113 0.3
Containers 751,000 Toyo Seikan Kaisha, Ltd. 18,417,114 23,043,763 0.3
Electric 410,000 Chudenko Corp. 13,428,175 16,911,469 0.2
Construction 29,000 Taihei Dengyo Kaisha Ltd. 657,632 662,274 0.0
-------------- -------------- ------
14,085,807 17,573,743 0.2
Electric 189,000 Hitachi, Ltd. 1,899,032 1,623,803 0.0
Equipment 578,500 Murata Manufacturing Co., Ltd. 18,793,786 18,449,145 0.2
1,360,000 Sumitomo Electric Industries 15,481,185 17,376,258 0.2
-------------- -------------- ------
36,174,003 37,449,206 0.4
<PAGE>
Insurance 1,352,000 Dai-Tokyo Fire & Marine Insurance
Co., Ltd. 8,326,005 9,453,119 0.1
665,000 Fuji Fire & Marine Insurance Co., Ltd. 3,727,641 3,793,310 0.1
1,482,000 Koa Fire & Marine Insurance Co., Ltd. 8,012,619 9,064,950 0.1
620,000 Mitsui Marine & Fire Insurance Co., Ltd. 5,004,638 4,303,823 0.1
1,422,000 Nichido Fire & Marine Insurance Co., Ltd. 8,960,736 11,015,493 0.1
1,295,000 Nippon Fire & Marine Insurance Co., Ltd. 6,665,367 8,116,549 0.1
1,775,000 Sumitomo Marine & Fire Insurance Co., Ltd. 13,830,866 15,142,857 0.2
1,625,000 Tokio Marine & Fire Insurance Co., Ltd. 17,355,002 18,309,859 0.2
630,000 Yasuda Fire & Marine Insurance Co., Ltd. 4,971,410 4,284,507 0.1
-------------- -------------- ------
76,854,284 83,484,467 1.1
Office 1,407,000 Canon, Inc. 19,624,604 20,807,746 0.3
Equipment
Pharmaceuticals 865,000 Sankyo Pharmaceuticals Co., Ltd. 21,123,949 20,537,223 0.3
384,000 Taisho Pharmaceuticals Co. 7,984,458 7,108,250 0.1
-------------- -------------- ------
29,108,407 27,645,473 0.4
Retail Stores 448,000 Ito Yokado Co., Ltd. 20,618,869 20,597,183 0.3
100,000 Sangetsu Co., Ltd. 3,160,832 2,716,298 0.0
-------------- -------------- ------
23,779,701 23,313,481 0.3
Steel 10,000 Maruichi Steel Tube Ltd. 153,093 197,183 0.0
Total Common Stocks in Japan 291,973,339 307,360,636 4.0
Netherlands Airlines 800,960 KLM Royal Dutch Airlines N.V. 15,801,656 21,447,162 0.3
Banking 1,226,150 ABN Amro Holdings N.V. 39,994,928 41,812,814 0.6
Chemicals 129,450 Akzo N.V. 12,211,968 14,653,858 0.2
99,000 European Vinyls Corp. International 4,370,485 4,657,936 0.1
-------------- -------------- ------
16,582,453 19,311,794 0.3
Electronics 986,000 Philips Electronics N.V. 29,158,574 31,081,502 0.4
Insurance 155,000 Aegon N.V. 8,361,695 9,917,384 0.1
375,400 Amev N.V. 14,542,480 15,616,922 0.2
800,965 Internationale Nederlanden Groep N.V. 30,066,279 37,403,709 0.5
-------------- -------------- ------
52,970,454 62,938,015 0.8
Miscellaneous-- 10,000 Nijverdal Ten Cate N.V. 501,699 455,265 0.0
Manufacturing
Telecommunications 310,680 Koninklijke PTT Nederland N.V. 9,724,158 10,193,988 0.1
Transportation 229,920 Koninklijke KNP (Warrants) (a) (f) 793,687 1,072,340 0.0
Total Common Stocks in the Netherlands 165,527,609 188,312,880 2.5
<PAGE>
New Zealand Finance 4,917,700 Brierly Investments, Ltd. 3,090,334 3,236,176 0.0
Total Common Stocks in New Zealand 3,090,334 3,236,176 0.0
Spain Banking 117,638 Banco de Santander S.A. (New) 4,662,973 3,995,554 0.0
562,639 Banco de Santander S.A. (Ordinary) 19,956,269 20,044,200 0.3
61,775 Banco Popular Espanol S.A. 6,511,311 7,474,174 0.1
83,000 Bank Intercontinental S.A. 4,607,612 6,201,978 0.1
-------------- -------------- ------
35,738,165 37,715,906 0.5
Energy & Petroleum 618,500 Repsol S.A. 18,566,656 17,272,624 0.2
Engineering & 144,375 Autopista Espana (ACESA) 1,363,125 1,133,293 0.0
Construction
Financial Services 326,000 Argentaria S.A. 12,974,203 10,924,900 0.2
Insurance 30,000 Mapfre S.A. 1,130,028 1,148,011 0.0
Manufacturing 195,000 Grupo Fosforera Espanola S.A. 1,696,601 1,323,156 0.0
Miscellaneous 4,404 Banco de Santander S.A. 169,169 149,914 0.0
Multi-Industry 45,750 Corporacion Financiera Alba S.A. 1,611,658 1,833,591 0.0
Real Estate 236,708 Metrovacesa 5,888,465 7,003,512 0.1
Telecommuni- 1,802,118 Telefonica Nacional de Espana S.A. 20,127,134 22,171,125 0.3
cations 184,000 Telefonica Nacional de Espana S.A.
(ADR)** 5,492,988 6,785,000 0.1
-------------- -------------- ------
25,620,122 28,956,125 0.4
Utilities-- 100,000 Empresa Nacional de Electricidad S.A. 3,759,956 4,068,232 0.1
Electric 591,800 Iberdrola I S.A. 3,310,030 3,493,000 0.0
-------------- -------------- ------
7,069,986 7,561,232 0.1
Total Common Stocks in Spain 111,828,178 115,022,264 1.5
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
<PAGE> Percent of
COUNTRY Industries Shares Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Sweden Appliances 303,614 Electrolux AB 'B' Free $ 15,176,555 $ 15,212,257 0.2%
Electrical 120,000 ASEA AB 'B' Free 6,532,086 8,810,831 0.1
Equipment
Industrial 200,000 SKF 'A' 3,713,376 3,504,611 0.1
625,000 SKF 'B' Free 11,597,425 10,910,266 0.1
-------------- -------------- ------
15,310,801 14,414,877 0.2
Insurance 343,050 Skandia Forsakring AB Free 5,159,320 5,714,148 0.1
Multi-Industry 245,000 Svedala Industri AB Free 3,925,653 5,778,610 0.1
Total Common Stocks in Sweden 46,104,415 49,930,723 0.7
Switzerland Electrical Equipment 19,534 BBC Brown Boveri & Cie (Bearer) 12,064,907 16,973,534 0.2
Food & Beverage 16,500 Nestle AG 13,014,541 15,056,009 0.2
Insurance 1,040 Baloise Holding Insurance (Registered) 1,986,476 1,860,755 0.0
Pharmaceuticals 19,800 Ciba-Geigy AG (Registered) 9,511,983 11,829,172 0.2
Total Common Stocks in Switzerland 36,577,907 45,719,470 0.6
United Kingdom Aerospace 1,452,500 Rolls Royce PLC 3,586,733 3,626,021 0.0
Beverage 1,360,600 Grand Metropolitan PLC 8,858,753 7,771,339 0.1
35,000 Grand Metropolitan PLC (ADR)++ 1,031,100 822,500 0.0
-------------- -------------- ------
9,889,853 8,593,839 0.1
Conglomerates 50,000 Hanson PLC (ADR)++ 984,250 918,750 0.0
Consumer Goods 850,000 Vendome Luxury Group (Units) 5,501,439 6,164,370 0.1
Electrical 1,230,200 General Electric Co. PLC 5,848,390 5,306,345 0.1
Equipment
Food 429,000 Tate & Lyle PLC 2,750,234 2,867,179 0.0
Industrial--Other 1,581,600 Tomkins PLC 5,292,446 5,547,620 0.1
Insurance 299,600 Commercial Union Assurance Co. PLC 2,717,248 2,331,337 0.0
714,600 Prudential Corp., PLC 3,430,912 3,302,524 0.0
<PAGE> -------------- -------------- ------
6,148,160 5,633,861 0.0
Leisure 1,800,000 Forte PLC 6,582,546 6,711,840 0.1
Leisure & 857,100 The Rank Organisation PLC 5,411,425 4,997,064 0.1
Entertainment
Oil & Related 370,000 Shell Transport & Trading Company PLC 4,133,580 4,144,814 0.1
Pharmaceuticals 500,000 SmithKline Beecham Corp. PLC (ADR)++ 13,633,894 17,437,500 0.2
1,000,000 Zeneca Group PLC 9,406,370 13,825,000 0.2
-------------- -------------- ------
23,040,264 31,262,500 0.4
Retail Stores 4,300 Boots Co. PLC 28,682 31,660 0.0
Steel 1,500,000 British Steel PLC 1,442,449 3,489,825 0.0
Telecommuni- 1,181,300 British Telecommunications PLC 7,049,207 7,437,819 0.1
cations 290,300 Unilever Capital Corp. 4,372,100 5,380,246 0.1
-------------- -------------- ------
11,421,307 12,818,065 0.2
Total Common Stocks in the
United Kingdom 92,061,758 102,113,753 1.3
United States Aerospace & 200,000 EG&G, Inc. 2,889,403 2,800,000 0.0
Defense
Airlines 12,500 UAL Corp. 1,187,500 1,156,250 0.0
Apparel 860,000 Fruit of the Loom, Inc. 23,555,786 21,177,500 0.2
373,900 Liz Claiborne, Inc. 8,022,626 6,216,088 0.1
-------------- -------------- ------
31,578,412 27,393,588 0.3
Automobiles 350,000 General Motors Corp. 13,282,191 13,562,500 0.2
Automobiles-- 60,000 Collins & Aikman Group Inc. 504,250 487,500 0.0
Miscellaneous
Banking 85,000 Albank Financial Corp. 971,875 1,976,250 0.0
280,500 AmSouth Bancorporation 7,624,356 7,643,625 0.1
400,000 Bank of New York 10,650,626 12,000,000 0.2
75,000 BankAmerica Corp. 3,219,677 3,234,375 0.0
319,000 Bankers Trust Co. 7,620,125 6,778,750 0.1
129,500 Banknorth Group, Inc. 1,865,422 3,205,125 0.0
700,000 Barnett Banks Inc. 28,355,015 29,925,000 0.4
<PAGE> 500,000 California Federal Bank 4,500,000 4,937,500 0.1
798,500 Chase Manhattan Corp. (f) 26,045,496 26,450,313 0.4
1,391 Chase Manhattan Corp. (Warrants) (a) 6,955 5,564 0.0
1,563,500 Chemical Banking Corp. (f) 57,018,758 60,781,063 0.8
1,560,300 City National Corp. 11,096,128 16,968,263 0.2
1,112,500 Comerica Inc. 30,077,266 27,951,563 0.4
375,000 CoreStates Financial Corp. 9,855,001 10,078,125 0.1
1,120,000 First of America Bank 41,734,310 34,020,000 0.4
1,250,000 First Commerce Corp. 31,823,468 29,375,000 0.4
400,000 First Union Corp. 16,226,028 17,100,000 0.2
1,466,102 KeyCorp 43,401,543 40,684,344 0.5
747,900 Mellon Bank Corp. 26,731,868 26,176,500 0.3
112,950 Mercantile Bancorp., Inc. 2,920,618 3,910,894 0.1
150,000 NBD Bancorp, Inc. 4,352,648 4,481,250 0.1
700,000 Onbancorp, Inc. 19,596,626 15,137,500 0.2
294,400 Oriental Bank and Trust 5,050,248 4,268,800 0.1
45,000 Premier Bancorp. 708,437 708,750 0.0
1,400,000 Republic New York Corp. 64,147,741 66,675,000 0.9
450,000 Southern National Corp. 8,670,728 9,112,500 0.1
2,000 Trustco Bankcorp. NY 26,211 38,500 0.0
-------------- -------------- ------
464,297,174 463,624,554 6.1
Broadcasting & 301,500 New York Times Co. (Class A) 7,158,778 6,595,313 0.1
Publishing 200,000 Times Mirror Co. 6,177,781 6,475,000 0.1
-------------- -------------- ------
13,336,559 13,070,313 0.2
Building & 700,000 TJ International, Inc. 12,547,379 11,900,000 0.2
Construction
Business & Public 250,000 Deluxe Corp. 6,706,999 6,687,500 0.1
Services
Communications 185,700 Comsat Corp. 4,308,767 3,667,575 0.1
104,500 GTE Corp. 3,514,166 3,539,938 0.0
300,000 Octel Communications Corp. 5,268,100 6,300,000 0.1
-------------- -------------- ------
13,091,033 13,507,513 0.2
Computers 190,000 Boole & Babbage, Inc. 2,421,964 5,272,500 0.1
700,000 Borland International Corp. 8,054,338 4,900,000 0.1
220,000 International Business Machines Corp. 9,577,320 15,867,500 0.2
1,100,000 Unisys Corp. 12,291,367 9,900,000 0.1
-------------- -------------- ------
32,344,989 35,940,000 0.5
Conglomerates 125,000 ADT Limited (ADR)++ 1,434,405 1,250,000 0.0
48,524 Tenneco Inc. 1,475,000 2,135,056 0.0
2,909,405 3,385,056 0.0
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Construction & 153,800 Centex Corp. $ 3,880,118 $ 3,498,950 0.1%
(continued) Housing 500,000 K. Hovnanian Enterprises, Inc. (Class A) 4,920,209 2,562,500 0.0
-------------- -------------- ------
8,800,327 6,061,450 0.1
Energy & 163,900 Ashland Coal, Inc. 4,132,919 4,650,663 0.1
Petroleum 45,000 Brown (Tom), Inc. 195,997 551,250 0.0
49,500 Cabot Oil & Gas Corp. (Class A) 529,030 618,750 0.0
34,600 Coastal Corp. 817,773 934,200 0.0
153,000 Coho Resources, Inc. 1,662,813 765,000 0.0
408,000 Gerrity Oil & Gas Corp. 5,748,846 1,173,000 0.0
130,000 Helmerich & Payne, Inc. (f) 2,773,423 3,315,000 0.1
30,000 McMoRan Oil & Gas Co. 146,197 78,750 0.0
46,400 Mitchell Energy Development Corp.
(Class A) 675,717 759,800 0.0
174,350 Mitchell Energy Development Corp.
(Class B) 2,755,451 2,898,569 0.0
50,000 Murphy Oil Corp. 1,899,720 2,175,000 0.0
106,100 Nuevo Energy Co. 2,048,791 1,737,388 0.0
1,563,400 Occidental Petroleum Corp. 29,245,537 29,313,750 0.4
61,200 Pennzoil Co. 3,775,844 2,754,000 0.0
149,700 Plains Resources, Inc. 1,371,062 842,063 0.0
1,794,248 Santa Fe Energy Resources, Inc. 16,331,708 15,251,107 0.2
1,175,000 Trans Texas Gas Corp. 14,200,000 12,337,500 0.2
700,000 USX-Marathon Group 12,267,189 11,200,000 0.2
138,800 Unocal Corp. 3,272,336 3,626,150 0.1
-------------- -------------- ------
103,850,353 94,981,940 1.3
Engineeering & 553,000 CBI Industries, Inc. 13,762,316 12,857,250 0.2
Construction
Financial 807,800 Student Loan Marketing Association 34,901,569 30,191,525 0.4
Services
Food & Beverage 2,062,314 RJR Nabisco, Inc. 11,342,727 12,116,095 0.2
Healthcare 410,000 Advocat, Inc. 3,897,500 5,073,750 0.1
Services 735,200 Baxter International, Inc. 15,654,522 21,688,400 0.3
400,000 Beverly Enterprises, Inc. 4,291,401 5,650,000 0.1
530,500 Hillhaven Corp. 8,732,138 13,793,000 0.2
150,000 Manor Care, Inc. 2,928,940 4,537,500 0.0
546,500 US Surgical Corp. 11,871,438 12,706,125 0.1
-------------- -------------- ------
47,375,939 63,448,775 0.8
<PAGE>
Index- US$ 40,800 Republic of Austria Stock Index
Related Growth Notes due 8/15/1996 432,941 530,400 0.0
Industrial 915,000 BW/IP Holdings, Inc. 15,816,387 14,411,250 0.2
250,000 Cooper Industries, Inc. 9,064,307 9,562,500 0.1
2,672 Gardner Denver Machinery, Inc. 22,042 29,726 0.0
-------------- -------------- ------
24,902,736 24,003,476 0.3
Insurance 913,400 Ace, Ltd. 20,951,269 22,492,475 0.3
245,000 Aetna Life & Casualty Co. 12,939,855 12,127,500 0.2
500,000 Alexander & Alexander Services, Inc. 8,443,979 10,062,500 0.1
550,000 American General Corp. 14,227,584 16,293,750 0.2
80,000 Chubb Corp. 5,640,851 6,480,000 0.1
571,000 Horace Mann Educators, Inc. 13,654,588 12,419,250 0.2
680,200 Lincoln National Corp. 25,035,425 24,827,300 0.3
590,000 PartnerRe Holdings, Ltd. 11,615,664 11,947,500 0.1
-------------- -------------- ------
112,509,215 116,650,275 1.5
Leisure & 223,900 Jostens Inc. 4,199,326 4,198,125 0.1
Tourism
Machinery & 284,900 Snap-On, Inc. 9,013,519 9,009,963 0.1
Engineering
Merchandising 93,700 Handleman Co. 1,044,752 1,018,988 0.0
1,373,500 Payless Cashways Inc. 17,027,625 13,391,625 0.2
-------------- -------------- ------
18,072,377 14,410,613 0.2
Metals 277,500 Alcan Aluminium, Ltd. 4,669,221 6,694,688 0.1
70,000 Aluminum Co. of America 4,698,667 5,503,750 0.1
100,000 Inco Ltd. 2,132,000 2,687,500 0.0
132,800 Reynolds Metals Co. 5,801,771 6,640,000 0.1
-------------- -------------- ------
17,301,659 21,525,938 0.3
Multi-Industry 385,000 Loews Corp. 35,433,180 35,564,375 0.5
Natural 11,250 Freeport McMoRan Copper & Gold Inc. 249,676 230,625 0.0
Resources 300,000 Freeport-McMoRan, Inc. 4,907,292 5,137,500 0.1
440,000 Horsham Corp. (ADR)++ 3,550,742 5,170,000 0.1
-------------- -------------- ------
8,707,710 10,538,125 0.2
Oil Services 670,000 Arethusa (Offshore) Ltd. 6,809,378 8,040,000 0.1
149,800 Atwood Oceanics, Inc. 1,238,663 1,629,075 0.0
43,400 Cliffs Drilling Co. 595,425 531,650 0.0
3,614,375 Noble Drilling Corp. 25,124,880 18,071,875 0.3
-------------- -------------- ------
33,768,346 28,272,600 0.4
<PAGE>
Paper & Forest 381,300 Boise Cascade Corp. 8,377,242 10,295,100 0.1
Products 335,000 Bowater, Inc. 6,869,235 8,877,500 0.1
50,000 International Paper Co. 3,099,234 3,556,250 0.1
150,000 Stone Container Corp. 1,954,854 2,550,000 0.0
-------------- -------------- ------
20,300,565 25,278,850 0.3
Pharmaceuticals/ 600,000 ALZA Corp. 13,048,597 14,100,000 0.2
Biotechnology 121,500 Alteon Inc. 1,205,188 744,187 0.0
100,000 American Home Products Corp. 5,997,291 7,012,500 0.1
435,000 Applied Immune Sciences, Inc. 6,160,143 2,446,875 0.0
58,200 AutoImmune Inc. 385,575 320,100 0.0
600,000 Bristol-Myers Squibb Co. 33,254,124 36,900,000 0.5
110,000 Immune Response Corp. 1,444,874 515,625 0.0
100,000 Lilly (Eli) & Co. 5,027,908 6,587,500 0.1
450,000 Merck & Co. 15,115,266 18,112,500 0.3
-------------- -------------- ------
81,638,966 86,739,287 1.2
Pollution Control 646,900 WMX Technologies, Inc. 16,148,443 18,355,787 0.2
Publishing 175,000 Gannett Co., Inc. 8,375,486 8,903,125 0.1
Real Estate & 424,600 Carr Realty Corp. 8,608,363 7,642,800 0.1
Real Estate 500,000 First Union Real Estate Investments 3,764,840 4,125,000 0.1
Investment Trusts 661,300 Mid-America Realty Investments 6,616,640 4,794,425 0.1
100,000 Mid-Atlantic Realty Trust Co. 917,500 787,500 0.0
830,000 Prime Residential, Inc. 13,262,250 12,761,250 0.1
400,000 Taubman Centers, Inc. 3,807,537 3,600,000 0.0
-------------- -------------- ------
36,977,130 33,710,975 0.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Restaurants 300,000 Buffets, Inc. $ 3,122,972 $ 2,925,000 0.0%
(concluded)
Retail Apparel 643,200 Burlington Coat Factory Warehouse 7,035,315 5,708,400 0.1
Retail Stores 608,500 Baker (J.) Inc. 10,187,765 8,290,812 0.1
516,900 Buttrey Food & Drug Stores Co. 4,084,486 3,747,525 0.1
105,000 Dayton-Hudson Corp. 6,995,242 7,205,625 0.1
100,000 Eagle Food Centers, Inc. 612,500 156,250 0.0
1,110,000 Filene's Basement Corp. 10,092,619 3,607,500 0.0
1,292,800 Service Merchandise Co., Inc. 10,487,218 5,656,000 0.1
400,000 Sotheby's Holdings, Inc. (Class A) 4,879,559 4,350,000 0.1
1,111,600 The Vons Companies, Inc. 18,500,110 21,954,100 0.2
-------------- -------------- ------
65,839,499 54,967,812 0.7
<PAGE>
Savings Banks 106,000 Ahmanson (H.F.) & Co. 1,767,857 1,735,750 0.0
297,600 Bankers Corp. 1,688,842 4,315,200 0.1
695,000 Brooklyn Bancorp Inc. (e) 16,888,752 20,850,000 0.3
496,700 Charter One Financial, Inc. 9,263,048 9,809,825 0.1
1,700,768 Dime Bancorp, Inc. 11,647,480 14,243,932 0.2
196,400 Downey Savings & Loan Association 2,896,670 2,921,450 0.0
1,895,553 Glendale Federal Savings Bank 16,659,352 16,586,089 0.2
770,194 Glendale Federal Savings Bank
(Warrants) (a) -- 1,925,485 0.0
37,500 NS Bancorp, Inc. 300,000 1,021,875 0.0
200,000 Portsmouth Bank Shares, Inc. 1,396,014 2,275,000 0.0
-------------- -------------- ------
62,508,015 75,684,606 0.9
Textiles 2,825,200 Burlington Industries, Inc. 37,451,653 30,370,900 0.4
Tobacco 720,000 Philip Morris Companies, Inc. 34,696,738 42,930,000 0.6
Utilities-- 1,250,000 Allegheny Power System, Inc. 27,315,551 29,843,750 0.4
Electric & Gas 125,000 CMS Energy Corp. 2,290,025 2,937,500 0.0
2,486,200 Centerior Energy Corp. 35,099,397 22,686,575 0.3
150,000 Consolidated Edison Company Inc. 4,390,815 4,237,500 0.1
1,780,000 Entergy Corp. 47,516,856 43,387,500 0.6
475,000 FPL Group, Inc. 14,363,265 17,396,875 0.2
300,000 General Public Utilities Corp. 8,663,891 8,475,000 0.1
1,757,900 Niagara Mohawk Power Corp. 28,627,702 27,247,450 0.3
844,600 Texas Utilities Co. 26,942,999 29,349,850 0.4
1,148,800 Unicom Corporation 27,549,620 29,868,800 0.4
-------------- -------------- ------
222,760,121 215,430,800 2.8
Utilities--Gas 115,650 Atmos Energy Corp. 1,445,257 1,893,769 0.0
126,900 Pacific Enterprises 2,486,131 2,886,975 0.0
40,800 South Jersey Industries, Inc. 711,756 790,500 0.0
-------------- -------------- ------
4,643,144 5,571,244 0.0
Total Common Stocks in the
United States 1,680,547,581 1,684,452,485 22.1
Total Investments in Common Stocks 2,722,472,673 2,837,957,471 37.2
Equity Closed-End Funds
Portugal Financial 39,500 Capital Portugal Fund 2,052,116 2,886,133 0.1
Services
Total Equity Closed-End Funds in Portugal 2,052,116 2,886,133 0.1
<PAGE>
United States Financial 320,000 Austria Fund 2,642,432 2,440,000 0.0
Services 166,666 European Warrant Fund 1,363,723 1,124,995 0.0
11,700 Global Yield Fund 89,798 71,662 0.0
300,100 Growth Fund of Spain, Inc. 2,630,827 2,738,412 0.1
150,000 Irish Investment Fund, Inc. 1,086,041 1,350,000 0.0
150,000 Italy Fund 1,198,520 1,312,500 0.0
25,600 Jakarta Growth Fund 158,080 230,400 0.0
40,000 Portugal Fund 360,368 490,000 0.0
Total Equity Closed-End Funds in
the United States 9,529,789 9,757,969 0.1
Total Investments in
Equity Closed-End Funds 11,581,905 12,644,102 0.2
Preferred Stocks
Germany Automobiles 80,150 Volkswagen of America, Inc. 17,907,876 15,984,780 0.2
Multi-Industry 45,000 R.W.E. AG 8,725,424 9,919,307 0.1
Total Preferred Stocks in Germany 26,633,300 25,904,087 0.3
Spain Banking 225,000 Santander Overseas Bank
(8%, Series D) (ADR)++ 5,463,250 4,865,625 0.1
Total Preferred Stocks in Spain 5,463,250 4,865,625 0.1
United Kingdom Engineering 750,000 AMEC PLC (6.50% Convertible) 968,501 888,750 0.0
Retail Stores 545,000 Signet Group (Convertible) (ADR)++ 2,194,907 3,746,875 0.1
Total Preferred Stocks in the
United Kingdom 3,163,408 4,635,625 0.1
United States Airlines 85,000 UAL Corp. (6.25% Convertible) 7,885,625 7,140,000 0.1
150,000 USAir Group, Inc. (Convertible $4.375,
Series B) 7,940,250 3,412,500 0.0
-------------- -------------- ------
15,825,875 10,552,500 0.1
Automobiles & 20,000 Ford Motor Co. (8.40% Convertible,
Equipment Series A) 1,000,000 1,642,500 0.0
<PAGE>
Banking 75,000 California Federal Bank (10.625%) 7,500,000 7,425,000 0.1
115,000 First Nationwide Bank (11.50%) 11,500,000 11,097,500 0.1
100,000 Fourth Financial Corp. (Convertible,
Class A) 2,500,000 2,800,000 0.0
130,300 Marine Midland Banks, Inc. (Adj. Rate,
Series A) 5,219,925 5,423,737 0.1
100,000 Onbancorp, Inc. (6.75% Convertible,
Series B) 2,668,750 2,050,000 0.0
-------------- -------------- ------
29,388,675 28,796,237 0.3
Energy & 150,000 Grant Tensor Corp. (9.75% Convertible) 1,853,375 1,950,000 0.0
Petroleum 13,609 Plains Resources, Inc. (Convertible,
Series C) 1,300,000 1,328,579 0.0
64,219 Santa Fe Energy Resources, Inc. (7%) 954,075 1,059,613 0.0
460,000 Santa Fe Energy Resources, Inc.
(Convertible, Class A) 4,082,500 4,082,500 0.1
-------------- -------------- ------
8,189,950 8,420,692 0.1
Financial Services 175,000 A/S Eksportfinans (8.70%) 4,377,500 4,178,125 0.1
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Preferred Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Gold Mines 219,000 Freeport-McMoRan Inc. (Convertible
(concluded) --Gold) $ 7,703,330 $ 6,898,500 0.1%
Health Care 1,080,000 US Surgical Corp. (Convertible) 24,354,000 28,890,000 0.4
Metals 85,000 Alumax Inc. (Convertible, Series A) 7,240,312 9,477,500 0.1
Natural Resources 150,000 Cyprus Amax Minerals Co.
(Convertible, Series A) 9,188,313 9,150,000 0.1
348,700 Freeport-McMoRan Copper & Gold, Inc.
(Convertible Shares) 7,918,834 7,148,350 0.1
-------------- -------------- ------
17,107,147 16,298,350 0.2
Oil Service 447,200 Noble Drilling Corp. (Convertible) 10,745,382 8,385,000 0.1
Paper & Forest 300,000 Boise Cascade Corp. (Convertible,
Products Series G) 6,337,500 7,275,000 0.1
388,200 James River Corp. of Virginia
(9% Convertible, Series P) 6,696,450 8,055,150 0.1
-------------- -------------- ------
13,033,950 15,330,150 0.2
<PAGE>
Real Estate 550,000 Catellus Development Corp. (7.25% Conv.
Exchangeable, Series B) 26,906,250 20,350,000 0.3
Real Estate 666,000 National Health Investors, Inc.
Investment (8.50% Convertible) 16,650,000 15,567,750 0.2
Trusts 700,000 Prime Retail, Inc. (10.50%) 16,712,575 14,000,000 0.2
-------------- -------------- ------
33,362,575 29,567,750 0.4
Savings Bank 619,900 Glendale Federal Savings Bank
(8.75% Convertible, Series E) 15,070,337 16,659,812 0.2
Total Preferred Stocks in the
United States 214,305,283 205,447,116 2.6
Total Investments in Preferred Stocks 249,565,241 240,852,453 3.1
Face Amount Fixed-Income Securities
Canada Government Canadian Government Bonds:
Obligations C$ 120,000,000 9.50% due 10/01/1998 91,871,422 86,463,813 1.1
10,000,000 8.50% due 3/01/2000 7,414,819 6,956,491 0.1
25,000,000 6.50% due 6/01/2004 16,791,181 14,787,431 0.2
-------------- -------------- ------
116,077,422 108,207,735 1.4
Oil & Related Mark Resources Inc., Convertible Bonds:
7,250,000 7.00% due 4/15/2002 5,052,564 4,278,046 0.1
1,250,000 8.00% due 11/30/2004 943,556 768,698 0.0
14,500,000 Talisman Energy Inc., 8.50% due
12/01/2000 11,040,982 9,277,691 0.1
-------------- -------------- ------
17,037,102 14,324,435 0.2
Paper & Forest Domtar, Inc.:
Products 6,763,000 10.35% due 9/01/2006 4,014,962 4,255,122 0.1
3,500,000 10.00% due 4/15/2011 1,938,573 2,157,330 0.0
-------------- -------------- ------
5,953,535 6,412,452 0.1
Real Estate Olympia & York Inc.:
57,194,000 Series 1, 10.70% due 11/04/1995 29,626,733 26,023,148 0.3
34,000,000 Series 2, 11.00% due 11/04/1998 18,060,242 15,469,927 0.2
-------------- -------------- ------
47,686,975 41,493,075 0.5
Resources 67,000,000 Sheritt Gordon, Ltd., 11.00%
due 3/31/2004 48,454,704 43,583,819 0.6
Total Fixed-Income Securities in Canada 235,209,738 214,021,516 2.8
<PAGE>
European Government ECU 175,000,000 Government of France, 8.25% due 4/25/2022 202,798,464 203,305,032 2.7
Currency Units Obligations
Banking 18,650,000 Banco Commercial Portuguese,
Convertible Bonds, 8.75% due 5/21/2002 25,610,950 22,980,679 0.3
2,000,000 Credit Local de France,
8.683% due 10/16/2001 1,576,239 1,397,906 0.0
-------------- -------------- ------
27,187,189 24,378,585 0.3
Industrial 7,000,000 SKF--AB Lyons, Convertible Bonds,
8.01% due 7/26/2002 5,038,478 4,572,792 0.1
Multi-Industry 1,000,000 Investor International Placements,
Convertible Bonds, 7.25% due 6/21/2001 1,001,412 1,272,456 0.0
Total Fixed-Income Securities in
European Currency Units 236,025,543 233,528,865 3.1
France Government Frf 700,000,000 Government of France, 8.50% due
Obligations 10/25/2019 132,737,864 133,123,225 1.7
--Regional
Automobiles 5,500 Peugeot, Convertible Bonds, 2.00%
due 1/01/2001 992,341 922,393 0.0
Banking 13,000 Credit National, Convertible Bonds,
3.25% due 1/01/2001 1,653,250 1,582,245 0.0
Industrial 30,000 Alcatel Alsthom, Convertible Bonds,
2.50% due 1/01/2004 3,926,887 3,793,299 0.1
Insurance 28,000 Finaxa, Convertible Bonds,
3.00% due 1/01/2001 7,022,120 6,651,524 0.1
Multi-Industry 8,713 Compagnie Generale des Eaux,
Convertible Bonds, 6.00% due 1/01/1998 4,859,722 4,927,966 0.1
Total Fixed-Income Securities in France 151,192,184 151,000,652 2.0
Germany Government Bundesrepublic Deutscheland:
Obligations DM 50,000,000 6.75% due 4/01/2004 30,974,132 30,915,830 0.4
44,000,000 7.75% due 10/01/2004 28,786,523 29,070,655 0.4
100,000,000 6.75% due 11/11/2004 65,701,493 65,885,980 0.9
Treuhandanstalt:
15,000,000 6.875% due 6/11/2003 9,043,986 9,466,640 0.1
300,000,000 7.50% due 9/09/2004 193,534,333 197,303,680 2.6
-------------- -------------- ------
328,040,467 332,642,785 4.4
<PAGE>
Government 64,000,000 Baden-Wuerttemberg, 6.20% due 11/22/2013 37,148,769 37,871,810 0.5
Obligations 57,500,000 Freie Hansestadt Hamburg,
--Regional 6.08% due 11/29/2018 33,152,404 32,950,371 0.4
165,000,000 Land Hessen, 6.00% due 11/29/2013 94,980,999 95,906,318 1.3
110,000,000 Mecklenberg Vorpommern, 6.15% due
6/16/2023 61,012,437 62,061,274 0.8
133,200,000 Nordrhein-Westfalen, 6.125% due 76,238,083 78,121,630 1.0
12/21/2018
Rheinland-Pfalz:
33,000,000 5.75% due 2/24/2014 18,324,663 18,780,752 0.2
62,000,000 6.08% due 11/29/2018 35,633,056 36,200,223 0.5
47,000,000 Sachsen-Anhalt, 6.00% due 1/10/2014 26,915,615 27,210,851 0.4
-------------- -------------- ------
383,406,026 389,103,229 5.1
Banking 2,310,000 Commerzbank AG, Floating Rate
Convertible Bonds, 20.00% due 6/15/2001 1,556,456 2,079,955 0.0
Total Fixed-Income Securities in Germany 713,002,949 723,825,969 9.5
Ireland Industrial IrP 8,046,277 CRH Capital Corp., Convertible Bonds,
6.50% due 4/30/2003 15,808,558 16,941,114 0.2
Total Fixed-Income Securities in Ireland 15,808,558 16,941,114 0.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Fixed-Income Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Italy Tele- Softe SA-LUX:
communi- Lit 16,760,000,000 8.75% due 3/24/1997 $ 10,756,360 $9,552,601 0.1%
cations 11,500,000,000 Convertible Bonds, 4.25% due 7/30/1998 7,894,814 8,126,262 0.1
-------------- -------------- ------
18,651,174 17,678,863 0.2
Total Fixed-Income Securities in Italy 18,651,174 17,678,863 0.2
Japan Automobiles Yen 400,000,000 Toyota Motor Corp., Convertible Bonds,
& Equipment 1.20% due 1/28/1998 2,477,431 4,084,507 0.1
Beverages 1,207,500,000 Hokkaido Coca-Cola Bottling Co., Ltd.,
Convertible Bonds, 0.90% due 6/30/1995 12,280,949 12,038,556 0.2
Electronics 988,000,000 Matsushita Electric Works, Convertible
Bonds, 2.70% due 5/31/2002 9,691,544 11,629,376 0.1
Total Fixed-Income Securities in Japan 24,449,924 27,752,439 0.4
<PAGE>
New Zealand Utilities-- NZ$ 2,000,000 Natural Gas Corp. Holdings, Convertible
Gas Bonds, 10.50% due 10/14/1997 1,186,318 1,788,920 0.0
Total Fixed-Income Securities in
New Zealand 1,186,318 1,788,920 0.0
Spain Government Government of Spain:
Obliga- Pta 7,500,000,000 10.30% due 6/15/2002 55,576,400 52,436,033 0.7
tions 12,000,000,000 10.90% due 8/30/2003 91,501,238 86,152,917 1.1
8,800,000,000 8.00% due 5/30/2004 51,845,737 52,637,935 0.7
-------------- -------------- ------
198,923,375 191,226,885 2.5
Total Fixed-Income Securities in Spain 198,923,375 191,226,885 2.5
Switzerland Financial Chf 4,010,000 Chrysler Financial Corp., 5.75%
Services due 6/18/1996 1,914,011 3,135,006 0.1
Hospital 1,500,000 American Medical International, Inc.,
Management 5.00% due 3/18/1996 493,386 1,161,027 0.0
Industrial 1,401,000 Ciba-Geigy AG, Convertible Bonds,
2.00% due 8/09/1998 1,178,587 1,326,890 0.0
Newspaper/ 3,020,000 News International, PLC, 5.375% due
Publishing 4/30/1996 1,115,703 2,325,788 0.0
Total Fixed-Income Securities
in Switzerland 4,701,687 7,948,711 0.1
United Kingdom Government Pound 37,500,000 United Kingdom Treasury Gilt,
Obliga- Sterling 8.00% due 6/10/2003 56,327,454 57,028,125 0.8
tions
Building 1,000,000 RMC Capital Ltd., Convertible Bonds,
Materials 8.75% due 5/31/2006 1,755,430 1,911,800 0.0
3,250,000 Redland Capital PLC, Convertible Bonds,
7.25% due 1/28/2002 5,382,804 4,980,950 0.1
-------------- -------------- ------
7,138,234 6,892,750 0.1
Energy 29,990,000 Elf Enterprises Finance PLC,
Convertible Bonds, 8.75% due 6/27/2006 48,109,352 46,318,055 0.6
Financial 3,550,000 SG Warburg Group, Convertible Bonds,
Services 6.50% due 8/04/2008 5,416,350 5,637,045 0.1
3,500,000 TransAtlantic Holdings PLC, Convertible
Bonds, 5.50% due 4/30/2009 4,521,101 4,147,500 0.1
-------------- -------------- ------
9,937,451 9,784,545 0.2
<PAGE>
Food 7,750,000 Tate & Lyle International, Convertible
Bonds, 5.75% due 3/21/2001 10,092,554 10,347,025 0.1
Industrial 6,375,000 Hanson PLC, Convertible Bonds,
9.50% due 1/31/2006 11,769,997 10,344,457 0.1
Multi-Industry 4,875,000 English China Clays PLC, Convertible
Bonds, 6.50% due 9/30/2003 8,364,034 7,240,350 0.1
Real Estate 500,000 Land Securities PLC, Convertible Bonds,
6.75% due 12/31/2002 679,603 742,600 0.0
Retail 8,350,000 Sainsbury (J.) PLC, Convertible Bonds,
8.50% due 11/19/2005 16,072,715 17,216,865 0.2
Total Fixed-Income Securities in the
United Kingdom 168,491,394 165,914,772 2.2
United States Aerospace Rohr Industries, Inc.:
US$ 7,500,000 11.625% due 5/15/2003 7,500,000 7,518,750 0.1
5,500,000 Convertible Bonds, 7.75% due 5/15/2004 5,500,000 6,490,000 0.1
10,075,000 Sequa Corp., 9.625% due 10/15/1999 9,874,313 9,470,500 0.1
-------------- -------------- ------
22,874,313 23,479,250 0.3
Airlines Delta Airlines, Inc.:
8,000,000 Series A2, 9.20% due 9/23/2014 7,370,000 7,000,000 0.1
8,000,000 10.06% due 1/02/2016 8,005,000 7,520,000 0.1
USAir Inc.:
11,000,000 10.00% due 7/01/2003 8,529,375 7,040,000 0.1
4,402,582 9.33% due 1/01/2006 4,292,958 3,654,143 0.0
19,300,000 10.375% due 3/01/2013 17,593,625 16,598,000 0.2
7,500,000 USAir Pass Thru, 9.625% due
9/01/2003 (d) 7,495,625 6,450,000 0.1
-------------- -------------- ------
53,286,583 48,262,143 0.6
Banking 3,000,000 Roosevelt Financial Group, Inc.,
9.50% due 8/01/2002 3,000,000 3,018,750 0.0
Broadcasting/ 16,550,000 Continental Cablevision, Inc.,
Cable 9.50% due 8/01/2013 14,987,188 15,143,250 0.2
Building & 39,250,000 United International Holdings, Inc.,
Construction 43.768% due 11/15/1999 20,535,671 20,606,250 0.3
Building 20,300,000 DalTile International, Inc.,
Materials 11.955% due 7/15/1998 (b) 13,145,809 12,992,000 0.2
41,100,000 Tarkett International, 9.00% due
3/01/2002 39,413,750 37,812,000 0.5
-------------- -------------- ------
52,559,559 50,804,000 0.7
<PAGE>
Computers 25,000,000 Dell Computer Corp., 11.00% due
8/15/2000 25,077,500 26,250,000 0.3
Energy 36,301,000 Trans Texas Gas Corp., 10.50% due
9/01/2000 36,300,233 34,939,712 0.5
Financial Lomas Mortgage USA, Inc.:
Services 11,000,000 9.75% due 10/01/1997 10,465,250 9,900,000 0.1
7,500,000 10.25% due 10/01/2002 7,000,000 6,075,000 0.1
2,351,000 US Trails, Senior Secured Notes,
12.00% due 7/15/1998 1,923,945 1,457,620 0.0
-------------- -------------- ------
19,389,195 17,432,620 0.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Fixed-Income Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Governments US$ 161,500,000 Banco Nacional (BNCE), 7.25% due
(continued) & Agencies-- 2/02/2004 $ 131,836,200 $ 104,975,000 1.4%
US$ Denominated 35,000,000 Brazil Exit Bonds, 6.00% due 9/15/2013 19,472,147 16,275,000 0.2
2,800,000 President Enterprises, 0.071%
due 7/22/2001 (b) 2,786,000 2,947,000 0.0
Republic of Argentina:
32,000,000 6.50% due 3/31/2005 15,212,500 19,200,000 0.3
140,000,000 Discount Notes, 7.125% due 3/31/2023 102,887,000 84,000,000 1.1
22,500,000 Global Bonds, 8.375% due 12/20/2003 16,943,750 15,525,000 0.2
324,000,000 Par Bonds, 4.25% due 3/31/2023 162,252,875 141,750,000 1.9
Republic of Brazil:
37,830,000 4.00% due 4/01/2014 (d) 29,569,238 30,264,000 0.4
210,000,000 4.00% due 4/15/2024 81,390,061 86,100,000 1.1
5,000,000 6.687% due 4/15/2024 3,100,000 3,000,000 0.1
United Mexican States:
10,000,000 8.50% due 9/15/2002 9,420,000 7,750,000 0.1
15,000,000 Discount Bonds, Series A,
6.25% due 12/31/2019 7,443,750 8,025,000 0.1
85,000,000 Discount Notes, Series A,
6.687% due 12/31/2019 72,635,500 59,075,000 0.8
85,000,000 Discount Notes, Series B,
6.25% due 12/31/2019 42,356,889 45,475,000 0.6
38,000,000 Discount Notes, Series B,
6.765% due 12/31/2019 32,631,250 26,410,000 0.3
2,000,000 Discount Notes, Series C,
6.937% due 12/31/2019 1,712,500 1,390,000 0.0
United Mexican States, Rights:
140,764,000 (Series A) 0 0 0.0
138,460,000 (Series B) 0 0 0.0
3,076,000 (Series C) 0 0 0.0
-------------- -------------- ------
731,649,660 652,161,000 8.5
<PAGE>
Health Care 7,200,000 Cetus (Chiron) Corp., Convertible Bonds,
5.25% due 5/21/2002 5,220,250 5,976,000 0.1
8,500,000 Mediq/PRN, Senior Notes,
11.125% due 7/01/1999 8,845,000 7,650,000 0.1
24,000,000 Paracelsus Healthcare Corp.,
9.875% due 10/15/2003 23,971,875 22,800,000 0.3
5,000,000 Regency Health Services, Inc.,
Convertible Bonds, 6.50% due 7/15/2003 4,887,500 5,625,000 0.1
-------------- -------------- ------
42,924,625 42,051,000 0.6
Homebuilding & 27,950,000 Baldwin Co., 10.375% due 8/01/2003 27,692,438 16,770,000 0.2
Construction 39,000,000 Beazer Homes USA, Inc., 9.00% due
3/01/2004 37,250,750 32,662,500 0.4
29,500,000 K. Hovnanian Enterprises,
9.75% due 6/01/2005 28,874,300 21,535,000 0.3
10,000,000 Kaufman & Broad Home Corporation,
9.375% due 5/01/2003 9,137,500 8,800,000 0.1
30,000,000 MDC Holdings Inc., 11.125% due
12/15/2003 28,916,500 24,750,000 0.3
28,250,000 Presley Companies, Senior Notes,
12.50% due 7/01/2001 28,190,313 23,165,000 0.3
Webb (Del E.) Corp.:
13,000,000 9.75% due 3/01/2003 12,770,000 10,920,000 0.2
22,850,000 9.00% due 2/15/2006 19,128,725 17,823,000 0.2
-------------- -------------- ------
191,960,526 156,425,500 2.0
Hospital 1,000,000 Novacare, Inc., Convertible Bonds,
Management 5.50% due 1/15/2000 857,500 790,000 0.0
Industrial 47,000,000 Allison Engine, Inc., 10.00% due
12/01/2003 47,150,625 48,762,500 0.6
4,000,000 Congoleum Corp., 9.00% due 2/01/2001 4,000,000 3,660,000 0.1
20,000,000 Crown Packaging Ltd., 10.75% due
11/01/2000 20,000,000 19,100,000 0.3
19,000,000 Easco Corp., 10.00% due 3/15/2001 19,005,000 17,670,000 0.2
19,000,000 Envirotest Systems Corp.,
9.125% due 3/15/2001 18,412,210 15,580,000 0.2
27,250,000 Genmar Holdings, Inc., 13.50% due
7/15/2001 27,127,100 25,615,000 0.3
10,000,000 Merisel, Inc., 12.50% due 12/31/2004 10,000,000 9,750,000 0.1
14,000,000 OSI Specialities Corp., 9.25% due
10/01/2003 14,000,000 13,020,000 0.2
30,500,000 Plastic Specialties & Technology, Inc.,
11.25% due 12/01/2003 30,540,000 26,230,000 0.4
-------------- -------------- ------
190,234,935 179,387,500 2.4
<PAGE>
Insurance 7,750,000 Horace Mann Educators, Inc., Convertible
Bonds, 6.50% due 12/01/1999 7,682,500 7,168,750 0.1
27,500,000 Mutual Life Insurance Co.,
1.831% due 8/15/1999 16,729,973 16,500,000 0.2
12,500,000 Nacolah Holding Corp., 9.50% due
12/01/2003 12,500,000 11,000,000 0.2
-------------- -------------- ------
36,912,473 34,668,750 0.5
Merchandising 35,000,000 Penn Traffic Co., 8.625% due 12/15/2003 34,876,400 30,800,000 0.4
12,000,000 Price Club Co., Convertible Bonds,
5.50% due 2/28/2012 11,213,250 9,300,000 0.1
-------------- -------------- ------
46,089,650 40,100,000 0.5
Oil & Related Columbia Gas System, Inc.:
2,000,000 9.00% due 8/01/1994 2,326,250 2,400,000 0.0
6,500,000 7.50% due 6/01/1997 6,808,750 7,296,250 0.1
5,000,000 10.15% due 11/01/2013 5,562,500 6,200,000 0.1
4,000,000 9.50% due 10/10/2019 4,310,000 4,920,000 0.1
9,500,000 Gerrity Oil & Gas Corp., 11.75%
due 7/15/2004 9,500,000 7,980,000 0.1
PDV America, Inc.:
35,000,000 7.25% due 8/01/1998 34,856,150 31,193,750 0.4
10,000,000 7.75% due 8/01/2000 10,062,500 8,550,000 0.1
26,362,500 Presidio Oil Co., 11.50% due 9/15/2000 26,963,000 20,035,500 0.3
10,000,000 Santa Fe Energy Resources, Inc.,
11.00% due 5/15/2004 9,926,600 10,050,000 0.1
6,000,000 USX Marathon Oil Co., 7.00% due
6/15/2017 5,650,000 4,890,000 0.1
-------------- -------------- ------
115,965,750 103,515,500 1.4
Paper & 7,370,000 Boise Cascade Corp., 9.45% due
Forest Products 11/01/2009 8,024,088 7,296,300 0.1
9,000,000 Stone Consolidated Corp.,
10.25% due 12/15/2000 9,000,000 8,797,500 0.1
-------------- -------------- ------
17,024,088 16,093,800 0.2
Real Estate 22,500,000 Alexander Haagen Properties Inc.,
Exchangeable Debentures, 7.25%
due 12/01/2003 22,500,000 19,912,500 0.3
25,000,000 First Washington Realty, 8.25% due
6/01/1999 25,000,000 23,625,000 0.3
6,500,000 LTC Properties, Inc., Convertible Bonds,
9.75% due 7/01/2004 6,500,000 8,255,000 0.1
27,000,000 Malan Realty Investors, Inc., Convertible
Bonds, 8.50% due 7/01/2003 27,000,000 23,490,000 0.3
24,150,866 RTC Commercial Mortgage, Class E, 8.25%
due 12/25/2020 (d) 23,781,056 21,494,271 0.3
23,336,300 Vista Properties, Inc., 13.75%
due 10/31/2001 (c) 11,748,460 8,401,068 0.1
-------------- -------------- ------
116,529,516 105,177,839 1.4
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Shares Held Fixed-Income Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Real Estate US$ 7,000,000 Centerpoint Properties Corp., Convertible
(concluded) Investment Bonds, 8.22% due 1/15/2004 $ 7,000,000 $7,315,000 0.1%
Trusts 30,000,000 First Union Real Estate,
8.875% due 10/01/2003 29,756,100 24,900,000 0.3
12,500,000 Liberty Property Trust, Convertible
Bonds, 8.00% due 7/01/2001 12,500,000 12,500,000 0.1
6,000,000 Meditrust, Convertible Bonds,
7.00% due 3/01/1998 6,035,000 6,030,000 0.1
28,500,000 Meditrust, Convertible Bonds,
7.50% due 3/01/2001 28,500,000 26,647,500 0.3
5,000,000 Mid-Atlantic Realty Trust, Convertible
Bonds, 7.625% due 9/15/2003 4,875,000 4,100,000 0.1
5,000,000 National Health Investors, Inc.,
Convertible Bonds, 7.375% due 4/01/1998 5,125,000 4,675,000 0.1
22,000,000 Nationwide Health Properties Inc.,
Convertible Bonds, 6.25% due 1/01/1999 21,950,000 20,130,000 0.2
9,545,000 Phoenix Home Life-Mutual Insurance Co.,
8.00% due 11/25/2023 9,545,000 8,447,325 0.1
5,500,000 Sizeler Property Investors, Inc.,
Convertible Bonds, 8.00% due 7/15/2003 5,505,000 4,730,000 0.1
-------------- -------------- ------
130,791,100 119,474,825 1.5
Resources 37,500,000 Freeport-McMoRan Resources,
8.75% due 2/15/2004 36,378,750 33,562,500 0.4
Retail 10,500,000 Waban, Inc., 11.00% due 5/15/2004 10,487,500 10,171,875 0.1
Savings Banks 15,000,000 Crossland Federal Savings Bank,
9.00% due 9/01/2003 15,634,250 14,175,000 0.2
21,400,000 First Federal Financial Corporation,
11.75% due 10/01/2004 21,401,250 21,293,000 0.3
-------------- -------------- ------
37,035,500 35,468,000 0.5
Supermarkets 39,650,000 Eagle Food Centers Inc.,
8.625% due 4/15/2000 36,095,837 15,265,250 0.2
17,500,000 Pueblo Xtra International Inc.,
9.50% due 8/01/2003 16,855,125 14,481,250 0.2
5,500,000 Ralphs Grocery Company, 10.25%
due 7/15/2002 5,545,000 5,335,000 0.1
-------------- -------------- ------
58,495,962 35,081,500 0.5
<PAGE>
Telecommuni- 21,000,000 Allnet Communication Services,
cations 9.00% due 5/15/2003 20,780,550 19,740,000 0.3
34,000,000 Call Net Enterprise, Inc.,
13.07% due 12/01/1999 18,290,170 17,510,000 0.2
28,500,000 Diamond Cable Communications,
6.51% due 9/30/1999 (b) 15,673,772 15,247,500 0.2
50,061,000 Marcus Cable Co. L.P., 25.962%
due 8/01/1999 (b) 27,808,104 26,532,330 0.4
Nextel Communications Inc. (b):
3,000,000 11.157% due 9/01/1998 2,046,826 1,080,000 0.0
33,500,000 5.314% due 2/15/1999 21,291,599 11,222,500 0.1
21,000,000 Paging Network, Inc., 8.875% due
2/01/2006 18,254,844 17,640,000 0.2
-------------- -------------- ------
124,145,865 108,972,330 1.4
Textiles & 12,500,000 Consoltex Group, Inc.,
Apparel 11.00% due 10/01/2003 12,530,000 11,125,000 0.1
23,500,000 Salant Corp., Secured, 10.50%
due 12/31/1998 23,030,000 22,325,000 0.3
18,250,000 Texfi Industries, Inc., 8.75%
due 8/01/1999 17,930,300 13,322,500 0.2
-------------- -------------- ------
53,490,300 46,772,500 0.6
Transportation 22,000,000 OMI Corp., 10.25% due 11/01/2003 21,910,000 18,920,000 0.3
Transportation/ 5,000,000 AMR Corp., 6.125% due 11/01/2024 4,070,440 4,312,500 0.0
Airline 5,000,000 NDWA Trust #2, Class C, 11.30% due
6/21/2014 5,000,000 5,075,000 0.1
-------------- -------------- ------
9,070,440 9,387,500 0.1
Utilities-- CTC Mansfield Funding Corp.:
Electric 17,000,000 10.25% due 3/30/2003 17,580,000 16,150,000 0.2
12,000,000 11.125% due 9/30/2016 12,820,000 11,430,000 0.1
40,000,000 California Energy Co., Inc., 2.876%
due 1/15/1997 (b) 32,837,196 28,600,000 0.4
8,000,000 Calpine Corp., Inc., 9.25% due 2/01/2004 7,277,500 6,950,000 0.1
Cleveland Electric Illuminating Company
Inc., First Mortgage:
5,000,000 9.30% due 7/26/1999 5,437,500 4,762,500 0.1
12,500,000 9.25% due 7/29/1999 13,562,500 11,875,000 0.1
3,000,000 9.05% due 8/15/2001 3,093,750 2,745,000 0.0
7,500,000 7.625% due 8/01/2002 7,462,500 6,262,500 0.1
5,000,000 7.375% due 6/01/2003 4,700,000 4,050,000 0.1
EUA Power Corp.:
1,000,000 Series B, 17.50% due 5/15/1993 475,000 37,500 0.0
3,157,600 Series C, 17.50% due 5/15/1993 1,915,790 118,410 0.0
<PAGE> El Paso Funding:
4,050,000 9.20% due 7/02/1997 3,286,000 2,328,750 0.0
25,000,000 10.375% due 1/02/2011 21,170,000 14,375,000 0.2
62,040,000 10.75% due 4/01/2013 52,996,150 35,673,000 0.5
6,000,000 Long Island Lighting Co.,
7.90% due 7/15/2008 5,412,060 5,047,500 0.1
23,000,000 PS of New Mexico, First PV Funding,
10.25% due 10/01/2012 23,000,000 21,677,500 0.3
Public Service Company of New Mexico:
19,800,000 10.30% due 1/15/2014 19,466,500 19,602,000 0.3
23,000,000 10.15% due 10/15/2016 21,803,125 22,540,000 0.3
Toledo Edison Co.:
2,000,000 9.30% due 4/01/1998 2,130,000 1,925,000 0.0
15,425,000 7.25% due 8/01/1999 15,425,000 13,496,875 0.2
3,000,000 9.50% due 4/01/2001 3,221,250 2,812,500 0.0
2,000,000 7.91% due 4/01/2003 1,992,500 1,680,000 0.0
-------------- -------------- ------
277,064,321 234,139,035 3.1
Total Fixed-Income Securities in the
United States 2,497,028,703 2,222,256,929 29.1
Foreign Issuers Banking 22,000,000 Banco de Galicia, 9.00% due 11/01/2003 21,506,460 13,750,000 0.2
- --US$ Denominated Banco Rio de la Plata:
52,000,000 (Class 3), 8.50% due 7/15/1998 52,444,125 43,680,000 0.5
50,000,000 8.75% due 12/15/2003 43,398,325 31,250,000 0.4
-------------- -------------- ------
117,348,910 88,680,000 1.1
Beverages 4,500,000 Dairy Farm International Holdings Ltd.,
6.50% due 5/10/2049 3,707,500 3,971,250 0.1
Chemicals 24,945,000 Ciba-Geigy Corp., Convertible Bonds,
6.25% due 3/15/2016 25,632,050 22,076,325 0.3
Energy 6,250,000 Ssangyong Oil Corp., 3.75% due
12/31/2008 6,681,062 6,093,750 0.1
Food 14,000,000 Burns, Philp & Company Ltd., Convertible
Processing Bonds, 5.50% due 4/30/2004 11,976,950 11,235,000 0.1
Hotel/Leisure 23,500,000 Four Seasons Hotel, Inc.,
9.125% due 7/01/2000 23,401,875 21,972,500 0.3
-------------- -------------- ------
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Percent of
COUNTRY Industries Face Amount Fixed-Income Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Foreign Issuers Industrial US$ 1,330,000 CRH Capital Corp., Convertible Bonds,
- --US$ Denominated 5.75% due 4/30/2005 $ 1,602,550 $ 1,582,700 0.0%
(concluded) 7,945,000 Ciba-Geigy Corp. (Warrants), 5.50%
due 10/28/1998 (a) 9,418,275 8,977,850 0.1
3,890,000 HIH Capital Ltd., Convertible Bonds
(Bearer), 7.50% due 9/25/2006 2,670,400 2,061,700 0.0
8,590,000 Hanson America Convertible Bonds, 2.39%
due 3/01/2001 6,485,535 6,227,750 0.1
77,000,000 International Semi-Tech Microelectronics
Inc., 13.493% due 8/15/2003 (b) 41,442,288 33,110,000 0.5
9,400,000 Johnson Electric Holdings Ltd.,
Convertible Bonds, 4.50% due 11/05/2000 8,405,029 7,755,000 0.1
26,410,000 Lend Lease Finance International Corp.,
Ltd., Convertible Bonds, 4.75% due
6/01/2003 28,765,792 26,806,150 0.4
2,500,000 MDC Holdings, Inc., 8.75% due 12/15/2005 2,150,000 2,131,250 0.0
2,000,000 P.T. Indorayon, Convertible Bonds,
5.50% due 10/01/2002 2,363,125 2,220,000 0.0
1,000,000 Siemens Corp. (with Warrants),
8.00% due 6/24/2002 (a) 1,318,750 1,279,700 0.0
2,220,000 Tung Ho Steel Enterprise, Convertible
Bonds, 4.00% due 7/26/2001 2,243,700 2,553,000 0.0
14,000,000 Wilrig AS, 11.25% due 3/15/2004 14,000,000 12,565,000 0.2
-------------- -------------- ------
120,865,444 107,270,100 1.4
Resources 26,000,000 Sherritt Ltd., 9.75% due 4/01/2003 26,124,375 24,765,000 0.3
34,000,000 Sifto Canada, Inc., 8.50% due 7/15/2000 33,875,187 31,025,000 0.4
-------------- -------------- ------
59,999,562 55,790,000 0.7
Transportation 8,500,000 Eletson Holdings Inc., 9.25% due
11/15/2003 8,537,500 7,543,750 0.1
Utilities-- 5,875,000 Veba International Finance (Warrants),
Electric 6.00% due 4/06/2000 (a) 7,083,300 8,955,262 0.1
Total Fixed-Income Securities in
Foreign Issuers--US$ Denominated 385,234,153 333,587,937 4.3
Total Investments in
Fixed-Income Securities 4,649,905,700 4,307,473,572 56.4
Short-Term Securities
<PAGE>
United States Commercial US$ 64,781,000 General Electric Capital Corp., 5.80%
Paper* due 2/01/1995 64,781,000 64,781,000 0.9
10,000,000 Tesobonos, 17.525% due 1/25/1996 8,257,179 8,036,522 0.1
Total Investments in Commercial Paper 73,038,179 72,817,522 1.0
Mexico Commercial Mexican Cetes (Certificados de la
Paper*-- Tesoreria de la Federacion):
Foreign MXN 9,620,690 33.41% due 3/09/1995 1,799,111 1,614,603 0.0
20,440,860 33.41% due 3/16/1995 3,490,072 3,412,735 0.0
50,000,000 37.00% due 3/30/1995 9,208,956 8,239,130 0.1
37,559,000 37.00% due 4/06/1995 6,291,226 6,156,410 0.1
130,980,390 37.00% due 4/12/1995 21,807,271 21,355,498 0.3
30,533,830 37.00% due 5/04/1995 4,959,639 4,885,413 0.1
61,000,000 38.60% due 7/20/1995 9,872,738 9,123,478 0.1
Total Commercial Paper--Foreign 57,429,013 54,787,267 0.7
Total Investments in
Short-Term Securities 130,467,192 127,604,789 1.7
Total Investments $7,763,992,711 7,526,532,387 98.6
==============
Unrealized Depreciation on Forward Foreign Exchange Contracts** (9,914,528) (0.1)
Variation Margin on Future Contracts++++ (82,875) 0.0
Other Assets Less Liabilities 117,945,146 1.5
-------------- -------
Net Assets $7,634,480,130 100.0%
============== =======
Net Asset Value: Class A--Based on net assets of $1,321,494,819
and 106,979,441 shares outstanding $ 12.35
==============
Class B--Based on net assets of $6,171,101,285
and 504,826,929 shares outstanding $ 12.22
==============
Class C--Based on net assets of $30,260,000
and 2,484,766 shares outstanding $ 12.18
==============
Class D--Based on net assets of $111,624,026
and 9,035,495 shares outstanding $ 12.35
==============
<PAGE>
*Commercial Paper is traded on a discount basis; the interest rates shown are
the discount rates paid at the time of purchase by the Fund.
**Forward Foreign Exchange Contracts as of January 31, 1995 were as follows:
<CAPTION>
Unrealized
Foreign Expiration Appreciation
Currency Sold Date (Depreciation)
<S> <C> <S> <C>
Chf 45,000,000 February 1995 $(1,116,559)
DM 575,000,000 February 1995 (5,621,054)
DM 473,000,000 March 1995 (5,941,128)
DM 160,000,000 April 1995 906,386
Dkr 7,000,000 March 1995 (20,322)
ECU 52,500,000 February 1995 1,225
ECU 30,000,000 March 1995 435,330
ECU 70,000,000 April 1995 393,600
Frf 234,000,000 February 1995 261,604
Frf 540,000,000 March 1995 117,754
Frf 140,000,000 April 1995 195,167
Pound Sterling 77,000,000 February 1995 394,231
Pound Sterling 18,000,000 March 1995 (340,398)
Nlg 88,000,000 February 1995 (865,084)
Nlg 61,000,000 March 1995 237,802
Nlg 48,000,000 April 1995 26,471
Pta 20,500,000,000 February 1995 2,319,713
Pta 5,500,000,000 March 1995 (130,510)
Yen 22,500,000,000 February 1995 (941,982)
Yen 7,000,000,000 March 1995 (226,774)
Total Unrealized Depreciation--Net, on
Forward Foreign Exchange Contracts
(US$ Commitment--$1,940,540,806) $(9,914,528)
===========
(a)Warrants entitle the Fund to purchase a predetermined number of shares of
stock/face amount of bonds at a predetermined price until the expiration date.
(b)The interest rate shown represents the yield-to-maturity on this zero coupon
issue.
(c)Represents a pay-in-kind security.
(d)Subject to principal paydowns as a result of prepayments or refinancings
of the underlying mortgage instruments. As a result, the average life may be
less than the original maturity.
(e)Name changed from Crossland Federal Savings Bank.
(f)Portion of security held as collateral in connection with open financial
futures contracts.
++American Depositary Receipt (ADR).
++++Financial Futures Contracts sold as of January 31, 1995 were as follows:
<PAGE>
<CAPTION>
Number of Expiration
Contracts Issue Date Value
<C> <S> <S> <C>
255 S&P Index March 1995 $(60,205,500)
(Total Contract Price--$59,745,600) $(60,205,500)
============
</TABLE>
PORTFOLIO CHANGES
For the Quarter Ended January 31, 1995
Additions
<PAGE>
AMR Corp., 6.125% due 11/01/2024
Banco de Santander S.A.
Basf AG
Buffets, Inc.
Bundesrepublic Deutscheland:
6.75% due 4/01/2004
6.75% due 10/01/2004
7.75% due 1/01/2004
Burlington Coat Factory Warehouse
Call Net Enterprise, Inc., 0.00% due 12/01/1999
Chubb Corp.
Collins & Aikman Group Inc.
Cott Corp.
Dairy Farm International
Holdings, Ltd., 6.50% due 5/10/2049
Dime Bancorp, Inc.
Duet Bundes, 7.75% due 10/01/2004
Electrolux AB 'B' Free
European Vinyls Corp. International
Forte PLC
Gannet Co., Inc.
Government of France, 8.50% due 10/25/2019
Government of Spain, 8.00% due 5/30/2004
Grupo Industrial Maseca (ADR)
Kaufman & Broad Home Corporation,
9.375% due 5/01/2003
MDC Holdings, Inc., 8.75% due 12/15/2005
Marcus Cable Co., 25.962% due 8/01/1999
NDWA Trust #2, Class C, 11.30% due 6/21/2014
Nextel Communications Inc:
11.157% due 9/01/1998
5.314% due 2/15/1999
Pacific Dunlop, Ltd.
President Enterprises, 0.071% due 7/22/2001
Prudential Corp., PLC
Republic of Argentina, 6.50% due 3/31/2005
Republic of Brazil:
4.00% due 4/01/2014
4.00% due 4/15/2024
6.688% due 4/15/2024
RJR Nabisco, Inc.
Shell Transport & Trading Company, PLC
Snap-On, Inc.
Societe Generale (New)
Taubman Centers, Inc.
Tenneco Inc.
United International Holdings, Inc.,
43.768% due 11/15/1999
United Mexican States:
Discount Bonds, Series A, 6.25%
due 12/31/2020
Discount Notes, Series B, 6.25%
due 12/31/2019
Discount Notes, Series B, 6.765%
due 12/31/2019
Discount Notes, Series C, 6.937%
due 12/31/2019
United Mexican States, Rights (Series C)
<PAGE>
Deletions
AMR Corp. (Convertible $3.00)
Alba Corp. (Rights)
American Medical International, Inc.,
6.50% due 5/30/1997
Anchor Bancorp., Inc.
Attwoods PLC (8.50% Convertible)
Attwoods PLC (ADR)
Autopista Espana (ACESA) (Rights)
Best Buy Company Inc., 8.625% due 10/01/2000
Boeing Co.
Borden, Inc.
British Gas PLC
Bundesrepublic Deutscheland,
6.75% due 4/22/2003
Cable & Wireless International PLC
Card Establishment Services, Inc., 10.00% due 10/01/2003
Champion International Corp.
Columbia Gas System, Inc:
10.25% due 8/01/2011
10.50% due 6/01/2012
Community Psychiatric Centers
Deutsche Bank AG
Dime Savings Bank of New York
Dominion Textile (USA) Inc., Senior Notes,
8.875% due 11/01/2003
Echo Bay Finance Ltd. (Convertible) (Series A)
Fuji Photo Film Co., Ltd.
Glaxo Holdings PLC, Convertible Bonds,
4.30% due 9/28/1998
Government of France, 8.50% due 4/25/2023
Hankyu Corp., Convertible Bonds,
1.25% due 9/30/1998
Hartmarx Corp., 10.875% due 1/15/2002
HealthCare COMPARE Corp.
Koninklijke KNP BT
MDC Holdings Inc., 6.642% due 4/01/1998
MFS Communications Corp., Inc.,
9.374% due 1/15/2004
Marcus Cable Co., 13.50% due 8/01/2004
Methanex Corp., 8.875% due 11/15/2001
NIKE, Inc. (Class B)
Nextel Communications, Inc.:
11.45% due 9/01/2003
9.75% due 8/15/2004
<PAGE>
Noble Drilling Corp., 9.25% due 10/01/2003
Owens-Illinois, Inc.:
10.50% due 6/15/2002
9.75% due 8/15/2004
Petrolera Argentina San Jorge S.A.,
11.00% due 2/09/1998
Pfizer, Inc.
President Enterprises:
8.30% due 7/22/2001
8.30% due 7/22/2001
Republic of Brazil, 4.312% due 1/01/2001
Republic of Finland, 11.00% due 1/15/1999
Reuters Holdings PLC
Sears Holdings PLC
Smith Food & Drug Ltd.
Societe Generale, Convertible Bonds,
3.50% due 1/01/2000
Stone Container Corp., 9.875% due 2/01/2001
Tenneco Inc. (Convertible, Series P)
Thorn EMI PLC (Ordinary)
Total Renal Care Inc., 12.00%
due 8/15/2004 (with Warrants)
Trans Texas Gas Corp., 10.50% due 9/01/2000
Trelleborg 'B' Free
Treuhandanstalt, 7.375% due 12/02/2002
United Mexican States, Discount Notes,
Series B, 4.312% due 12/31/2019
US Treasury Notes, 7.50% due 11/15/2001
The Vons Companies, Inc.,
9.625% due 4/01/2002
Western Digital Co.
PORTFOLIO INFORMATION
Worldwide
Investments
As of 1/31/95
<PAGE>
Percent Breakdown of
Stocks & Fixed-Income Percent of
Securities by Country Net Assets
United States* 59.2%
Germany 11.5
Japan 4.4
Spain 4.1
United Kingdom 3.6
European Currency Units 3.1
Canada 3.0
France 2.7
Netherlands 2.5
Italy 0.9
Mexico 0.7
Switzerland 0.7
Sweden 0.7
Australia 0.4
Ireland 0.3
Finland 0.3
Austria 0.1
Hong Kong 0.1
Brazil 0.1
Portugal 0.1
------
Total 98.6%
======
[FN]
*Includes investments in short-term securities.
Ten Largest Industries Percent of
(Equity Investments) Net Assets
Banking* 8.7%
Insurance 3.7
Utilities--Electric & Gas 2.8
Energy & Petroleum 1.5
Telecommunications 1.3
Pharmaceuticals/Biotechnology 1.2
Retail Stores 1.1
Pharmaceuticals 1.0
Multi-Industry 0.9
Healthcare Services 0.8
<PAGE>
[FN]
*Includes Savings Banks.
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
Republic New York Corp. 0.9%
Chemical Banking Corp. 0.8
Entergy Corp. 0.6
Philip Morris Companies, Inc. 0.6
ABN Amro Holdings N.V. 0.6
KeyCorp 0.5
Internationale Nederlanden
Groep N.V. 0.5
Bristol-Myers Squibb Co. 0.5
Loews Corp. 0.5
Veba AG 0.5
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