MERRILL LYNCH
GLOBAL
ALLOCATION
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 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.
<PAGE>
<TABLE>
Summary of
Fund's Overall
Asset Mix
As of 4/30/95
<CAPTION>
Percent of Fund's Portfolio Reference Portfolio
4/30/95 1/31/95 Percentages
<S> <C> <C> <C>
North & South American Equities* 22.1% 22.7% 36.0%
European Equities 9.6 10.0 9.6
Pacific Basin Equities* 5.6 4.5 14.4
Total Equities 37.3 37.2 60.0
US Dollar Denominated Fixed-Income Securities** 34.2 36.1 24.0
US Issuers 20.6 22.9 --
Non-US Issuers 13.6 13.2 --
Non-US Dollar Denominated Fixed-Income Securities** 24.2 23.4 16.0
Total Fixed-Income Securities 58.4++ 59.5++ 40.0
Cash & Cash Equivalents 4.3 3.3 --
<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>
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 and Portfolio Manager
Gerald M. Richard, Treasurer
Michael J. Hennewinkel, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
DEAR SHAREHOLDER
We made little change in Merrill Lynch
Global Allocation Fund, Inc.'s overall
asset allocation during the three months
ended April 30, 1995. Equity invest-
ments made up 37.3% of net assets as of
April, virtually unchanged from the
close of the prior period. Fixed-income
investments were down slightly from
59.5% of net assets to 58.4%. Cash and
cash equivalents, which made up 3.3% of
the portfolio at January quarter-end,
were increased slightly to 4.3% at the end
of the April quarter. (See the "Summary
of the Fund's Overall Asset Mix" table
on page 1 of this report to shareholders.)
There were minor shifts in portfolio
allocations on a geographic basis. North
and South American (principally US)
common stock investments accounted
for 22.7% of net assets at the end of
January, and were 22.1% of the portfolio
at the end of April. With US equities at
historic high prices and reflecting
expensive valuations, we continue to
believe that bonds offer a more attrac-
tive risk/return tradeoff. Pacific Basin
equities increased to 5.6% of net assets
from 4.5%, primarily through an increase
in Japanese investments from 4.0% to
4.7%. European equities as a percentage
of the portfolio declined from 10.0%
to 9.6%.
With the lowest share prices in nearly
two years, we chose to increase Japanese
equity investments during the quarter.
The Fund's Japanese equity exposure
is nevertheless underweighted since
the high value of the yen is exerting
significant pressure on the profitability
of Japanese industry. In addition, equity
valuations, while inexpensive compared
to recent Japanese stock market history,
are not compellingly attractive com-
pared to the world's major equity markets.
Many Japanese equities are at the low-
est price/book value ratios in years,
but since Japanese corporate profits
are under pressure, price/earnings
ratios remain high compared to other
major stock markets.
<PAGE>
In the fixed-income area, we decreased
US dollar-denominated holdings from
36.1% to 34.2%, and increased the
already overweighted European fixed-
income exposure to 21.6%, up from
19.8% at the end of the prior quarter.
Our European fixed-income invest-
ments are focused in German govern-
ment and state bonds, which offer high
credit quality and yields greater than
US Treasury issues. The portfolio's US
dollar exposure (that is, US dollar-
denominated assets and non-US dollar-
denominated assets hedged back into
US dollars) was virtually unchanged
over the course of the quarter.
<PAGE>
In terms of the Fund's performance, the
most significant development during
the April quarter was the decline and
subsequent recovery in Latin American
financial markets. As discussed in our
last report to shareholders, Latin Ameri-
can capital markets declined sharply
following the Mexican peso's devalua-
tion in December 1994, and continued
through early March 1995. The Mexican
currency continued to weaken as in-
vestors questioned the country's ability
to service its short-term debt obligations
because of its large and growing current
account deficit. Mexico has sought to
remedy the situation by raising interest
rates to attract capital and by devaluing
the peso, which will make Mexican
goods more competitive internationally
and US goods more expensive in Mexico.
Investor concerns spread to relatively
healthier economies such as Argentina
and Brazil, where fixed-income markets
also sold off sharply. However, in mid-
March, Latin American markets reversed
their downtrend and rallied through
April quarter-end. The Fund has a
significant exposure to US dollar-
denominated Latin American fixed-
income securities, which accounted for
10.6% of net assets at the end of April
compared to 9.6% at the end of January.
These assets depressed performance
early in the April quarter, but contrib-
uted to the Fund's appreciation during
the last seven weeks of the period. In
addition, the Fund's 1.2% position
in Cetes (peso-denominated Mexican
treasury issues) appreciated during
the period.
Another positive factor for Fund per-
formance was higher US fixed-income
prices, although returns on our high-
yield US bond holdings lagged those of
high-grade issues during the early part
of the rally, a typical phenomenon in
periods of rapid bond price changes.
By the end of the quarter, the Fund's
high-yield fixed-income holdings were
also benefiting from the bond market
rally, and we took profits in some issues.
On the other hand, the Fund's under-
weighting in US stocks did not benefit
performance, and the bulk of foreign
currency gains in Deutschemark and
yen-denominated issues were foregone
because these positions were largely
hedged back into US dollars.
<PAGE>
Worldwide, the most dramatic develop-
ments occurred in the currency markets.
This year, the Deutschemark bloc of
currencies and the yen have appreciated
substantially relative to the US dollar.
With the perception that the US econ-
omy is slowing and US interest rates
have passed an interim peak, global
investors have been reluctant to invest
in US dollar-denominated assets. In addi-
tion, it appears that the Federal Reserve
Board's priority is to set monetary policy
to influence the rate of inflation and
domestic economic activity, rather
than defending the US dollar's value in
foreign exchange markets.
Although the large trade and Federal
budget deficits in the United States work
against rapid appreciation of the US
dollar, we believe the currency is deeply
undervalued relative to the yen and
the Deutschemark in terms of its pur-
chasing power. Therefore, we plan to
continue to hedge much of the Fund's
exposure to other currencies.
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.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Bryan N. Ison)
Bryan N. Ison
Vice President and Portfolio Manager
<PAGE>
June 14, 1995
Proxy
Results
During the six-month period ended April 30, 1995, Merrill Lynch Global
Allocation Fund, Inc. shareholders voted on the following proposals.
Proposals 1, 2 and 4 were approved at a special shareholders' meeting
on September 28, 1994. Proposal 3 was passed at a special shareholders'
meeting on January 31, 1995. The description of each proposal and number
of shares voted are as follows:
<TABLE>
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Donald Cecil 572,588,904 8,494,328
Edward H. Meyer 572,606,645 8,476,587
Charles C. Reilly 572,647,433 8,435,799
Richard R. West 572,552,407 8,530,825
Arthur Zeikel 572,586,058 8,497,174
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Deloitte & Touche LLP as the Fund's independent auditors. 564,296,985 3,615,032 13,171,215
3. To approve certain changes to the Fund's fundamental investment restrictions. 283,883,550 11,820,033 18,685,566
4. To amend the Fund's articles of incorporation to implement the Merrill Lynch
Select Pricing SM System. 529,891,699 21,154,264 30,037,269
</TABLE>
PERFORMANCE DATA
<PAGE>
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
and 5. Data for Class C and Class D Shares are also presented
in the "Recent Performance Results" and "Aggregate Total
Return" tables on page 5.
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 April 30, 1995 and for Class C and Class D Shares for the
since inception and 3-month periods ended April 30, 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>
<CAPTION>
Performance
Summary-- Net Asset Value Capital Gains
Class A Shares 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--4/30/95 12.23 13.03 -- -- + 6.54
------ ------
Total $1.004 Total $4.676
Cumulative total return as of 4/30/95: +113.16%**
<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>
<CAPTION>
Performance
Summary-- Net Asset Value Capital Gains
Class B Shares 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--4/30/95 12.12 12.87 -- -- + 6.19
------ ------
Total $1.004 Total $4.052
Cumulative total return as of 4/30/95: +100.13%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date,
and do not reflect deduction of any sales charge; results would
be lower if sales charge was deducted.
</TABLE>
<PAGE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/95 + 0.01% - 5.24%
Five Years Ended 3/31/95 +12.74 +11.53
Inception (2/3/89) through 3/31/95 +12.31 +11.33
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/95 - 0.98% - 4.75%
Five Years Ended 3/31/95 +11.58 +11.58
Inception (2/3/89) through 3/31/95 +11.17 +11.17
[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 3/31/95 - 0.80% - 1.75%
[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 3/31/95 - 0.44% - 5.66%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<TABLE>
Recent
Performance
Results
<CAPTION>
Net Asset Value Total Return
4/30/95 1/31/95 4/30/94++ 12-Month++ 3-Month
<S> <C> <C> <C> <C> <C>
ML Global Allocation Fund, Inc. Class A Shares* $13.03 $12.35 $13.32 + 3.70%(1) + 5.51%
ML Global Allocation Fund, Inc. Class B Shares* 12.87 12.22 13.16 + 2.73 (2) + 5.32
ML Global Allocation Fund, Inc. Class C Shares* 12.82 12.18 12.91 + 3.48 (3) + 5.25
ML Global Allocation Fund, Inc. Class D Shares* 13.03 12.35 13.07 + 3.95 (4) + 5.51
US Stocks: Standard & Poor's 500 Index** +17.37 +10.08
Non-US Stocks: Financial Times-Actuaries World Index*** + 4.99 + 9.62
US Bonds: ML Government Index GA05**** + 6.08 + 4.36
Non-US Bonds: Salomon Brothers World Government Bond Index***** +20.74 +14.39
<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 $0.479 per share ordinary
income dividends and $0.140 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.368 per share ordinary
income dividends and $0.140 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.383 per share ordinary
income dividends and $0.140 per share capital gains distributions.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
Australia Banking 2,645,800 Westpac Banking Corp. $ 5,614,396 $ 9,734,232 0.1%
Food 7,916,000 Goodman Fielder Wattie Ltd. 8,324,587 6,906,868 0.1
Insurance 1,500,000 GIO Australia Holdings, Ltd. 2,567,209 3,042,914 0.0
Multi- 1,500,000 Pacific Dunlop, Ltd. 4,092,789 3,686,397 0.0
Industry
Tobacco 2,099,800 Rothmans Holdings, Ltd. 7,893,919 8,107,120 0.1
1,242,300 WD & HO Wills Holdings, Ltd. 1,389,502 2,511,108 0.0
-------------- -------------- ------
9,283,421 10,618,228 0.1
Total Common Stocks in Australia 29,882,402 33,988,639 0.3
Austria Utilities-- 143,950 Oesterreichische Elektrizitats AG
Electric (Verbund) 9,213,216 9,508,434 0.1
Total Common Stocks in Austria 9,213,216 9,508,434 0.1
Canada Beverage US$ 800,000 Cott Corp. 7,512,145 7,300,000 0.1
Metals US$ 277,500 Alcan Aluminium, Ltd. 4,669,221 7,874,063 0.1
US$ 100,000 Inco Ltd. 2,132,000 2,587,500 0.0
-------------- -------------- ------
6,801,221 10,461,563 0.1
Natural US$ 300,000 Canadian Pacific, Ltd. 3,503,161 4,575,000 0.1
Resources US$ 440,000 Horsham Corp. 3,550,742 5,995,000 0.1
-------------- -------------- ------
7,053,903 10,570,000 0.2
<PAGE>
Oil & US$ 353,000 +++International Petroleum Corp. 1,000,196 706,000 0.0
Related
Telecommuni- US$ 100,000 BCE Telecommunications, Inc. 3,375,484 3,175,000 0.0
cations
Total Common Stocks in Canada 25,742,949 32,212,563 0.4
Denmark Banking 53,500 Unidanmark A/S 1,870,730 2,452,412 0.0
Total Common Stocks in Denmark 1,870,730 2,452,412 0.0
Finland Banking 4,194,000 Kansallis-Osake-Pankki 4,512,421 4,212,701 0.0
1,483,915 Unitas Bank Ltd. 4,285,282 4,388,014 0.1
-------------- -------------- ------
8,797,703 8,600,715 0.1
Metals 432,500 Outokumpu OY 5,980,994 7,734,452 0.1
Paper & Forest
Products 1,500,000 Enso-Gutzeit OY 12,019,454 13,517,954 0.2
188,950 Metsa-Serla OY 7,874,590 8,247,993 0.1
560,700 Repola OY S 7,792,828 11,277,163 0.1
-------------- -------------- ------
27,686,872 33,043,110 0.4
Total Common Stocks in Finland 42,465,569 49,378,277 0.6
France Automobiles 113,300 Peugeot S.A. 14,661,303 16,377,105 0.2
Banking 86,500 Societe Generale 9,605,405 9,522,936 0.1
Multi-Industry 26,432 EuraFrance 7,223,759 8,325,833 0.1
Total Common Stocks in France 31,490,467 34,225,874 0.4
Germany Banking 4,950 Bayerische Vereinsbank AG 1,181,909 1,404,116 0.0
4,950 Bayerische Vereinsbank AG (Rights) -- 13,575 0.0
-------------- -------------- ------
1,181,909 1,417,691 0.0
Capital Goods 369,636 +++Kloeckner Werke AG 17,229,762 24,977,210 0.3
<PAGE>
Chemicals 34,000 +++Basf AG 6,821,542 7,568,114 0.1
32,000 Bayer AG 7,646,190 7,886,102 0.1
-------------- -------------- ------
14,467,732 15,454,216 0.2
Electronics 15,900 Siemens AG 8,014,818 7,733,396 0.1
Insurance 4,860 Munich Reinsurance Co. (Ordinary) 8,778,068 9,711,570 0.1
Machinery & 40,179 Mannesmann AG 10,977,155 10,918,049 0.2
Equipment
Utilities-- 44,000 Veba AG 13,369,098 16,408,181 0.2
Electric
Total Common Stocks in Germany 74,018,542 86,620,313 1.1
Hong Telecommuni- 1,180,000 Hong Kong Telecommunications Ltd. 754,179 2,309,392 0.0
Kong cations
Utilities-- 676,800 China Light & Power Co., Ltd. 841,166 3,191,216 0.0
Electric
Total Common Stocks in Hong Kong 1,595,345 5,500,608 0.0
Indo- Banking US$ 2,060,000 +++Asia Pacific Resources International
nesia Holdings Ltd. 15,467,500 16,222,500 0.2
Paper & US$ 1,715,000 +++Asia Paper & Pulp Company Ltd. (ADR)++ 19,722,500 19,508,125 0.3
Pulp
Total Common Stocks in Indonesia 35,190,000 35,730,625 0.5
Ireland Building & 1,065,600 CRH PLC 3,594,241 6,428,211 0.1
Construction
Miscellaneous-- 2,178,000 Waterford Wedgwood Units 1,080,827 1,917,546 0.0
Consumer 3,500,000 Waterford Wedgwood Units (Ordinary) 2,920,253 3,081,456 0.0
Goods -------------- -------------- ------
4,001,080 4,999,002 0.0
Total Common Stocks in Ireland 7,595,321 11,427,213 0.1
Italy Banking 533,400 IMI (Ordinary) 3,443,328 3,260,551 0.0
Building & 1,922,200 Filippo Fochi S.p.A. 6,101,165 1,032,208 0.0
Construction
<PAGE>
Multi-Industry 9,117,595 Compagnie Industriali Riunite S.p.A.
(CIR) 7,816,550 7,806,533 0.1
Telecommuni- 3,000,000 Societa Finanziaria Telefonica S.p.A.
cations (STET) 4,365,656 8,556,086 0.1
11,181,363 Societa Finanziaria Telefonica S.p.A.
(STET) RISP 20,700,047 25,685,112 0.3
3,958,000 Societa Italiana Esercizio Telecom
S.p.A. (S.I.P.) 3,323,376 10,568,049 0.1
-------------- -------------- ------
28,389,079 44,809,247 0.5
Total Common Stocks in Italy 45,750,122 56,908,539 0.6
Japan Automobiles & 2,012,000 Suzuki Motor Corp. 18,039,202 21,554,577 0.3
Equipment 470,000 Toyota Motor Corp. 7,085,582 9,566,718 0.1
-------------- -------------- ------
25,124,784 31,121,295 0.4
Beverage 847,000 Chukyo Coca-Cola Bottling Co., Ltd. 10,365,680 10,082,133 0.1
458,000 Hokkaido Coca-Cola Bottling Co., Ltd. 6,158,994 6,814,665 0.1
650,000 Kinki Coca-Cola Bottling Co., Ltd. 10,324,463 9,361,981 0.1
768,000 Mikuni Coca-Cola Bottling Co., Ltd. 11,402,231 10,604,452 0.1
788,400 Sanyo Coca-Cola Bottling Co., Ltd. 11,233,639 13,138,436 0.2
-------------- -------------- ------
49,485,007 50,001,667 0.6
Capital Goods 3,808,000 Mitsubishi Heavy Industries, Ltd. 23,136,107 27,650,042 0.4
Containers 851,000 Toyo Seikan Kaisha, Ltd. 21,504,084 29,376,265 0.4
Electric 430,500 Chudenko Corp. 13,428,175 15,270,682 0.2
Construction 31,900 Taihei Dengyo Kaisha Ltd. 657,632 622,735 0.0
-------------- -------------- ------
14,085,807 15,893,417 0.2
Electric 189,000 Hitachi, Ltd. 1,899,032 1,923,521 0.0
Equipment 578,500 Murata Manufacturing Co., Ltd. 18,793,786 23,274,967 0.3
1,360,000 Sumitomo Electric Industries 15,481,185 18,454,946 0.2
-------------- -------------- ------
36,174,003 43,653,434 0.5
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
Japan Insurance 1,568,000 Dai-Tokyo Fire & Marine Insurance
(concluded) Co., Ltd. $ 9,798,404 $ 11,478,634 0.1%
665,000 Fuji Fire & Marine Insurance Co., Ltd. 3,727,641 3,641,233 0.0
1,484,000 Koa Fire & Marine Insurance Co., Ltd. 8,025,005 9,945,149 0.1
620,000 Mitsui Marine & Fire Insurance Co., Ltd. 5,004,638 4,701,107 0.1
1,422,000 Nichido Fire & Marine Insurance Co., Ltd. 8,960,736 11,814,736 0.2
1,351,000 Nippon Fire & Marine Insurance Co., Ltd. 6,970,280 8,844,780 0.1
2,083,000 Sumitomo Marine & Fire Insurance Co.,
Ltd. 16,337,244 17,529,830 0.2
2,075,000 Tokio Marine & Fire Insurance Co., Ltd. 22,188,264 24,699,441 0.3
1,130,000 Yasuda Fire & Marine Insurance Co., Ltd. 8,101,705 8,043,566 0.1
-------------- -------------- ------
89,113,917 100,698,476 1.2
Office 1,407,000 Canon, Inc. 19,624,604 23,279,729 0.3
Equipment
Pharma- 1,061,500 Sankyo Pharmaceuticals Co., Ltd. 23,403,444 25,523,509 0.3
ceuticals 384,000 Taisho Pharmaceuticals Co. 7,984,458 7,176,289 0.1
-------------- -------------- ------
31,387,902 32,699,798 0.4
Retail Stores 448,000 Ito Yokado Co., Ltd. 20,618,869 24,157,124 0.3
100,000 Sangetsu Co., Ltd. 3,160,832 2,952,030 0.0
-------------- -------------- ------
23,779,701 27,109,154 0.3
Steel 110,000 Maruichi Steel Tube Ltd. 2,015,081 2,252,113 0.0
Total Common Stocks in Japan 335,430,997 383,735,390 4.7
Mexico Foods US$ 600,000 Grupo Industrial Maseca (ADR)++ 7,107,853 7,275,000 0.1
Total Common Stocks in Mexico 7,107,853 7,275,000 0.1
Nether- Airlines 400,960 +++KLM Royal Dutch Airlines N.V. 8,407,677 12,219,339 0.2
lands
Banking 1,226,150 ABN Amro Holdings N.V. 39,994,928 47,263,142 0.6
Chemicals 100,650 Akzo N.V. 9,758,201 11,697,443 0.2
140,650 European Vinyls Corp. International 6,009,493 6,193,395 0.1
-------------- -------------- ------
15,767,694 17,890,838 0.3
<PAGE>
Electronics 986,000 Philips Electronics N.V. 29,158,574 37,688,017 0.5
Insurance 130,000 Aegon N.V. 7,013,035 10,114,282 0.1
375,400 +++Amev N.V. 14,542,480 19,875,258 0.3
800,965 Internationale Nederlanden Groep N.V. 30,066,279 42,303,033 0.5
-------------- -------------- ------
51,621,794 72,292,573 0.9
Miscellaneous-- 10,000 Nijverdal Ten Cate N.V. 501,699 519,757 0.0
Manufacturing
Transportation 229,920 Koninklijke KNP (Warrants) (a) 793,687 446,836 0.0
Total Common Stocks in the Netherlands 146,246,053 188,320,502 2.5
Spain Banking 326,000 Argentaria S.A. 12,974,203 10,561,498 0.1
122,042 Banco de Santander S.A. (New) 4,832,142 4,353,343 0.1
465,439 Banco de Santander S.A. (Ordinary) 16,491,645 17,030,104 0.2
61,775 Banco Popular Espanol S.A. 6,511,311 8,457,920 0.1
83,000 Bank Intercontinental S.A. 4,607,612 6,823,769 0.1
-------------- -------------- ------
45,416,913 47,226,634 0.6
Energy & US$ 212,500 Repsol S.A. (ADR)++ 6,126,375 6,800,000 0.1
Petroleum 618,500 Repsol S.A. 18,566,656 19,735,613 0.3
-------------- -------------- ------
24,693,031 26,535,613 0.4
Insurance 30,000 Mapfre S.A. 1,130,028 1,318,681 0.0
Manufacturing 195,000 +++Grupo Fosforera Espanola S.A. 1,696,601 1,061,905 0.0
Multi-Industry 45,750 Corporacion Financiera Alba S.A. 1,611,658 2,320,085 0.0
Real Estate 236,708 Metrovacesa 5,888,465 6,984,668 0.1
Toll Roads 144,375 Autopista Espana (ACESA) 1,363,246 1,327,991 0.0
Utilities-- 100,000 Empresa Nacional de Electricidad S.A. 3,759,956 4,737,485 0.1
Electric 591,800 Iberdrola I S.A. 3,310,030 3,901,978 0.1
-------------- -------------- ------
7,069,986 8,639,463 0.2
Total Common Stocks in Spain 88,869,928 95,415,040 1.3
<PAGE>
Sweden Appliances 303,614 Electrolux AB 'B' Free 15,176,555 15,489,019 0.2
Automotive & 395,000 Volvo AB 8,006,793 7,414,092 0.1
Equipment
Banking 965,750 Stadshypotek AB 14,244,129 13,279,843 0.2
Electrical 120,000 ASEA AB 'B' Free 6,532,086 10,098,593 0.1
Equipment
Industrial 200,000 SKF 'A' 3,713,376 4,001,485 0.1
625,000 SKF 'B' Free 11,597,425 12,590,583 0.2
-------------- -------------- ------
15,310,801 16,592,068 0.3
Multi-Industry 245,000 Svedala Industri AB Free 3,925,653 6,468,380 0.1
Total Common Stocks in Sweden 63,196,017 69,341,995 1.0
Switzer- Chemical 33,040 Ciba-Geigy AG (Registered) 16,539,906 22,662,607 0.3
land
Electrical 13,154 BBC Brown Boveri & Cie (Bearer) 8,568,052 13,015,900 0.2
Equipment
Food & 4,800 Nestle AG 3,867,313 4,699,213 0.1
Beverage
Total Common Stocks in Switzerland 28,975,271 40,377,720 0.6
United Aerospace 1,610,151 Rolls Royce PLC 3,955,665 4,432,907 0.1
Kingdom
Conglomerates 431,800 Hanson PLC (Ordinary) 1,665,901 1,642,405 0.0
US$ 50,000 Hanson PLC (ADR)++ 984,250 950,000 0.0
-------------- -------------- ------
2,650,151 2,592,405 0.0
Consumer 733,600 Vendome Luxury Group (Units) 4,742,278 5,669,261 0.1
Goods
Electrical 1,230,200 General Electric Co. PLC (Ordinary) 5,848,390 6,040,897 0.1
Equipment
Environmental US$ 940,000 +++Waste Management International PLC
(ADR)++ 9,206,375 8,107,500 0.1
<PAGE>
Food & 1,360,600 Grand Metropolitan PLC 8,858,753 8,751,311 0.1
Beverage US$ 35,000 Grand Metropolitan PLC (ADR)++ 1,031,100 905,625 0.0
230,300 Tate & Lyle PLC 1,555,052 1,605,490 0.0
290,300 Unilever 4,372,100 5,734,789 0.1
-------------- -------------- ------
15,817,005 16,997,215 0.2
Industrial-- 1,148,000 Tomkins PLC 3,813,189 4,324,975 0.1
Other
Insurance 714,600 Prudential Corp., PLC 3,430,912 3,612,589 0.0
Leisure 1,224,200 Forte PLC 4,476,863 4,493,793 0.1
Leisure & 759,200 The Rank Organisation PLC 4,807,635 5,182,603 0.1
Entertainment
Oil & Related 370,000 Shell Transport & Trading Company PLC 4,133,580 4,387,331 0.1
Pharma- 1,000,000 Zeneca Group PLC 9,406,370 14,546,350 0.2
ceuticals
Retail Stores 4,300 Boots Co. PLC 28,682 35,307 0.0
Steel 1,500,000 British Steel PLC 1,442,449 4,081,350 0.1
Telecommuni- 794,800 British Telecommunications PLC 4,737,228 4,971,355 0.1
cations
Total Common Stocks in the
United Kingdom 78,496,772 89,475,838 1.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Face Amount/ Value Percent of
COUNTRY Industries Shares Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
United Aerospace & 200,000 EG&G, Inc. $ 2,889,403 $ 3,375,000 0.0%
States Defense
Airlines 12,500 UAL Corp. 1,187,500 1,500,000 0.0
Apparel 860,000 +++Fruit of the Loom, Inc. 23,555,786 22,360,000 0.3
373,900 Liz Claiborne, Inc. 8,022,626 6,730,200 0.1
-------------- -------------- ------
31,578,412 29,090,200 0.4
Automobiles 350,000 General Motors Corp. 13,282,191 15,793,750 0.2
<PAGE>
Automotive 338,800 +++Collins & Aikman Group Inc. 2,741,187 2,541,000 0.0
284,900 Snap-On, Inc. 9,013,519 10,612,525 0.2
-------------- -------------- ------
11,754,706 13,153,525 0.2
Banking 85,000 Albank Financial Corp. 971,875 2,178,125 0.0
400,000 Bank of New York 10,650,626 13,150,000 0.2
75,000 BankAmerica Corp. 3,219,677 3,712,500 0.1
319,000 Bankers Trust Co. 7,620,125 7,217,375 0.1
129,500 Banknorth Group, Inc. 1,865,422 3,140,375 0.0
700,000 Barnett Banks Inc. 28,355,015 32,725,000 0.4
500,000 +++California Federal Bank 4,500,000 6,125,000 0.1
496,700 Charter One Financial, Inc. 9,263,048 11,299,925 0.1
748,500 Chase Manhattan Corp. (f) 24,570,496 32,746,875 0.4
1,391 Chase Manhattan Corp. (Warrants) (a) 6,955 14,606 0.0
1,563,500 Chemical Banking Corp. (f) 57,018,758 65,276,125 0.8
1,560,300 City National Corp. 11,096,128 15,798,038 0.2
1,112,500 Comerica Inc. 30,077,266 31,984,375 0.4
475,000 CoreStates Financial Corp. 12,757,358 15,496,875 0.2
1,120,000 First of America Bank 41,734,310 38,780,000 0.5
1,250,000 First Commerce Corp. 31,823,468 34,062,500 0.4
400,000 First Union Corp. 16,226,028 18,100,000 0.2
1,466,103 KeyCorp 43,401,543 39,218,242 0.5
747,900 Mellon Bank Corp. 26,731,868 29,355,075 0.4
112,950 Mercantile Bancorp., Inc. 2,920,618 4,122,675 0.1
150,000 NBD Bancorp, Inc. 4,352,648 4,593,750 0.1
700,000 Onbancorp, Inc. 19,596,626 18,112,500 0.2
294,400 Oriental Bank and Trust 5,050,248 4,452,800 0.1
45,000 +++Premier Bancorp. 708,437 753,750 0.0
1,400,000 Republic New York Corp. 64,147,741 67,025,000 0.9
450,000 Southern National Corp. 8,670,728 9,225,000 0.1
-------------- -------------- ------
467,337,012 508,666,486 6.5
Business & 250,000 Deluxe Corp. 6,706,999 7,718,750 0.1
Public
Services
Communications 185,700 Comsat Corp. 4,308,767 3,714,000 0.1
104,500 GTE Corp. 3,514,166 3,566,063 0.0
145,000 +++Octel Communications Corp. 2,537,449 3,280,625 0.0
-------------- -------------- ------
10,360,382 10,560,688 0.1
Computers 170,800 Boole & Babbage, Inc. 2,202,252 4,825,100 0.1
700,000 +++Borland International Corp. 8,054,338 6,737,500 0.1
170,000 International Business Machines Corp. 7,383,675 16,107,500 0.2
1,100,000 +++Unisys Corp. 12,291,367 11,275,000 0.1
-------------- -------------- ------
29,931,632 38,945,100 0.5
<PAGE>
Conglomerates 125,000 ADT Limited (ADR)++ 1,434,405 1,484,375 0.0
Construction & 153,800 Centex Corp. 3,880,118 3,691,200 0.0
Housing 500,000 K. Hovnanian Enterprises, Inc. (Class A) 4,920,209 2,687,500 0.0
-------------- -------------- ------
8,800,327 6,378,700 0.0
Construction 700,000 TJ International, Inc. 12,547,379 11,550,000 0.2
Products
Electric 40,446 +++Great Bay Power Co. 2,549,753 323,568 0.0
Energy & Petroleum 163,900 Ashland Coal, Inc. 4,132,919 4,527,738 0.1
45,000 +++Brown (Tom), Inc. 195,997 630,000 0.0
49,500 Cabot Oil & Gas Corp. (Class A) 529,030 767,250 0.0
34,600 Coastal Corp. 817,773 1,029,350 0.0
153,000 Coho Resources, Inc. 1,662,813 803,250 0.0
408,000 +++Gerrity Oil & Gas Corp. 5,748,846 2,040,000 0.0
130,000 Helmerich & Payne, Inc. (f) 2,773,423 3,851,250 0.1
30,000 +++McMoRan Oil & Gas Co. 146,197 75,000 0.0
46,400 Mitchell Energy Development Corp.
(Class A) 675,717 852,600 0.0
174,350 Mitchell Energy Development Corp.
(Class B) 2,755,451 3,138,300 0.0
50,000 Murphy Oil Corp. 1,899,720 2,187,500 0.0
106,100 +++Nuevo Energy Co. 2,048,791 2,029,163 0.0
1,500,000 Occidental Petroleum Corp. 28,058,743 34,500,000 0.4
61,200 Pennzoil Co. 3,775,844 2,991,150 0.0
109,700 Plains Resources, Inc. 890,237 959,875 0.0
1,094,248 Santa Fe Energy Resources, Inc. 10,119,883 10,258,574 0.1
211,514 +++Transamerica Refining Corp.
(Warrants) (a) 531,220 634,542 0.0
1,175,000 Trans Texas Gas Corp. 14,200,000 15,421,875 0.2
700,000 USX-Marathon Group 12,267,189 13,125,000 0.2
138,800 Unocal Corp. 3,272,336 3,990,500 0.1
-------------- -------------- ------
96,502,129 103,812,917 1.2
Engineeering & 553,000 CBI Industries, Inc. 13,762,316 13,686,750 0.2
Construction
Financial 807,800 Student Loan Marketing Association 34,901,569 32,715,900 0.4
Services
Food & 400,000 Philip Morris Companies, Inc. 19,617,414 27,100,000 0.3
Tobacco 412,463 RJR Nabisco, Inc. 11,342,727 11,291,169 0.1
-------------- -------------- ------
30,960,141 38,391,169 0.4
<PAGE>
Healthcare 360,000 +++Advocat, Inc. 3,422,500 4,275,000 0.1
Services 650,000 Baxter International, Inc. 13,870,330 22,587,500 0.3
400,000 +++Beverly Enterprises, Inc. 4,291,401 5,750,000 0.1
370,000 +++Hillhaven Corp. 6,340,252 10,175,000 0.1
546,500 US Surgical Corp. 11,871,438 12,159,625 0.2
-------------- -------------- ------
39,795,921 54,947,125 0.8
Index- 40,800 Republic of Austria Stock Index Growth
Related Notes due 8/15/1996 432,941 586,500 0.0
Industrial 915,000 BW/IP Holdings, Inc. 15,816,387 16,012,500 0.2
250,000 Cooper Industries, Inc. 9,064,307 9,750,000 0.1
2,672 +++Gardner Denver Machinery, Inc. 22,042 36,740 0.0
-------------- -------------- ------
24,902,736 25,799,240 0.3
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
United Insurance 913,400 Ace, Ltd. $ 20,951,269 $ 24,205,100 0.3%
States 245,000 Aetna Life & Casualty Co. 12,939,855 13,965,000 0.2
(concluded) 400,000 Alexander & Alexander Services, Inc. 6,738,329 9,550,000 0.1
550,000 American General Corp. 14,227,584 18,150,000 0.2
571,000 Horace Mann Educators, Inc. 13,654,588 11,776,875 0.2
680,200 Lincoln National Corp. 25,035,425 27,718,150 0.4
680,000 PartnerRe Holdings, Ltd. 13,404,414 15,640,000 0.2
-------------- -------------- ------
106,951,464 121,005,125 1.6
Metals 140,000 Aluminum Co. of America 4,698,667 6,282,500 0.1
132,800 Reynolds Metals Co. 5,801,771 6,689,800 0.1
-------------- -------------- ------
10,500,438 12,972,300 0.2
Multi-- 385,000 Loews Corp. 35,433,180 39,221,875 0.5
Industry
Natural 15,000 Freeport-McMoRan Copper & Gold Inc. 327,957 313,125 0.0
Resources 300,000 Freeport-McMoRan, Inc. 4,648,074 5,287,500 0.1
-------------- -------------- ------
4,976,031 5,600,625 0.1
<PAGE>
Oil 670,000 +++Arethusa (Offshore) Ltd. 6,809,378 9,380,000 0.1
Services 149,800 +++Atwood Oceanics, Inc. 1,238,663 2,059,750 0.0
43,400 +++Cliffs Drilling Co. 595,425 575,050 0.0
3,614,375 Noble Drilling Corp. 25,124,880 23,945,234 0.3
-------------- -------------- ------
33,768,346 35,960,034 0.4
Paper & 150,000 Boise Cascade Corp. 3,358,632 4,912,500 0.1
Forest 150,000 Bowater, Inc. 3,043,543 5,737,500 0.1
Products 50,000 International Paper Co. 3,099,234 3,850,000 0.1
-------------- -------------- ------
9,501,409 14,500,000 0.3
Pharmaceuticals/ 121,500 +++Alteon Inc. 1,205,188 637,875 0.0
Biotechnology 435,000 +++Applied Immune Sciences, Inc. 6,160,143 2,011,875 0.0
58,200 AutoImmune Inc. 385,575 385,575 0.0
600,000 Bristol-Myers Squibb Co. 33,254,124 39,075,000 0.5
110,000 +++Immune Response Corp. 1,444,874 330,000 0.0
450,000 Merck & Co., Inc. 15,115,266 19,293,750 0.2
500,000 SmithKline Beecham Corp. PLC (ADR)++ 13,633,894 19,437,500 0.2
-------------- -------------- ------
71,199,064 81,171,575 0.9
Pollution 646,900 WMX Technologies, Inc. 16,148,443 17,628,025 0.2
Control
Publishing 175,000 Gannett Co., Inc. 8,375,486 9,209,375 0.1
301,500 New York Times Co. (Class A) 7,158,778 6,821,438 0.1
140,138 Times Mirror Co. (Class A) 3,118,610 2,540,001 0.0
-------------- -------------- ------
18,652,874 18,570,814 0.2
Real Estate 504,600 Carr Realty Corp. 10,031,714 8,956,650 0.1
& Real 500,000 First Union Real Estate Investments 3,764,840 3,625,000 0.0
Estate 661,300 Mid-America Realty Investments 6,616,640 5,207,738 0.1
Investment 100,000 Mid-Atlantic Realty Trust Co. 917,500 850,000 0.0
Trusts 830,000 Prime Residential, Inc. 13,262,250 11,931,250 0.2
400,000 Taubman Centers, Inc. 3,807,537 3,850,000 0.1
-------------- -------------- ------
38,400,481 34,420,638 0.5
Restaurants 477,900 +++Buffets, Inc. 4,998,092 4,838,738 0.1
Retail 608,500 Baker (J.) Inc. 10,187,765 7,530,188 0.1
Stores 643,200 +++Burlington Coat Factory Warehouse 7,035,315 6,914,400 0.1
516,900 +++Buttrey Food & Drug Stores Co. 4,084,486 3,876,750 0.1
105,000 Dayton-Hudson Corp. 6,995,242 7,048,125 0.1
100,000 +++Eagle Food Centers, Inc. 612,500 212,500 0.0
1,110,000 +++Filene's Basement Corp.++++ 10,092,619 4,301,250 0.1
93,700 Handleman Co. 1,044,752 995,563 0.0
1,373,500 +++Payless Cashways Inc. 17,027,625 10,816,313 0.1
1,292,800 +++Service Merchandise Co., Inc. 10,487,218 6,302,400 0.1
1,111,600 +++The Vons Companies, Inc. 18,500,110 22,787,800 0.3
-------------- -------------- ------
86,067,632 70,785,289 1.0
<PAGE>
Savings 106,000 Ahmanson (H.F.) & Co. 1,767,857 2,226,000 0.0
Banks 297,600 Bankers Corp. 1,688,842 4,836,000 0.1
695,000 +++Brooklyn Bancorp Inc. (e) 16,888,752 22,066,250 0.3
1,700,768 +++Dime Bancorp, Inc. 11,647,480 16,369,892 0.2
196,400 Downey Savings & Loan Association 2,896,670 3,535,200 0.0
1,895,553 Glendale Federal Savings Bank 16,659,352 23,220,524 0.3
770,194 Glendale Federal Savings Bank
(Warrants) (a) -- 2,984,502 0.0
37,500 NS Bancorp, Inc. 300,000 1,101,563 0.0
204,000 Portsmouth Bank Shares, Inc. 1,396,014 2,422,500 0.0
-------------- -------------- ------
53,244,967 78,762,431 0.9
Specialty 400,000 Sotheby's Holdings, Inc. (Class A) 4,879,559 5,350,000 0.1
Retailing
Telecommuni- 109,400 +++Cox Communication, Inc. 1,673,005 1,668,350 0.0
cations
Textiles 2,825,200 +++Burlington Industries, Inc. 37,451,653 31,077,200 0.4
Utilities-- 1,250,000 Allegheny Power System, Inc. 27,315,551 29,375,000 0.4
Electric 125,000 CMS Energy Corp. 2,290,025 2,921,875 0.0
& Gas 2,486,200 Centerior Energy Corp. 35,099,397 22,065,025 0.3
150,000 Consolidated Edison Company Inc. 4,390,815 4,162,500 0.1
1,780,000 Entergy Corp. 47,516,856 38,715,000 0.5
475,000 FPL Group, Inc. 14,363,265 17,456,250 0.2
300,000 General Public Utilities Corp. 8,663,891 8,550,000 0.1
1,757,900 Niagara Mohawk Power Corp. 28,627,702 24,390,862 0.3
844,600 Texas Utilities Co. 26,942,999 27,555,075 0.4
1,148,800 Unicom Corporation 27,549,620 30,156,000 0.4
-------------- -------------- ------
222,760,121 205,347,587 2.7
Utilities--Gas 115,650 Atmos Energy Corp. 1,445,257 2,168,437 0.0
126,900 Pacific Enterprises 2,486,131 3,124,912 0.0
40,800 South Jersey Industries, Inc. 711,756 821,100 0.0
-------------- -------------- ------
4,643,144 6,114,449 0.0
Total Common Stocks in the
United States 1,602,867,757 1,703,474,798 21.6
Total Investments in Common Stocks 2,656,005,311 2,935,369,780 37.2
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Equity Closed-End Funds Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
Austria Financial US$ 320,000 Austria Fund $ 2,642,432 $ 2,560,000 0.0%
Services
Total Equity Closed-End Funds in Austria 2,642,432 2,560,000 0.0
Ireland Financial US$ 150,000 Irish Investment Fund, Inc. 1,086,041 1,481,250 0.0
Services
Total Equity Closed-End Funds in Ireland 1,086,041 1,481,250 0.0
Italy Financial US$ 150,000 Italy Fund 1,198,520 1,218,750 0.0
Services
Total Equity Closed-End Funds in Italy 1,198,520 1,218,750 0.0
Portugal Financial 39,500 Capital Portugal Fund 2,052,116 3,342,660 0.0
Services US$ 25,600 Jakarta Growth Fund 158,080 195,200 0.0
US$ 40,000 Portugal Fund 360,368 565,000 0.0
Total Equity Closed-End Funds in
Portugal 2,570,564 4,102,860 0.0
Spain Financial US$ 300,100 Growth Fund of Spain, Inc. 2,630,827 2,888,462 0.0
Services
Total Equity Closed-End Funds in
Spain 2,630,827 2,888,462 0.0
United Financial 166,666 European Warrant Fund 1,363,723 1,229,162 0.0
States Services 11,700 Global Yield Fund 89,798 76,050 0.0
Total Equity Closed-End Funds in the
United States 1,453,521 1,305,212 0.0
Total Investments in Equity Closed-End
Funds 11,581,905 13,556,534 0.0
<PAGE>
<CAPTION>
Preferred Stocks
<S> <S>
Germany Automobiles 80,150 Volkswagen of America, Inc. 17,907,876 17,319,397 0.2
Multi- 45,000 R.W.E. AG 8,725,424 12,120,763 0.2
Industry
Total Preferred Stocks in Germany 26,633,300 29,440,160 0.4
New Finance 5,585,700 Brierly Investments, Ltd. (9%
Zealand Convertible) 3,515,477 3,829,802 0.0
Total Preferred Stocks in New Zealand 3,515,477 3,829,802 0.0
Norway Financial US$ 175,000 A/S Eksportfinans (8.70%) 4,377,500 4,462,500 0.0
Services
Total Preferred Stocks in Norway 4,377,500 4,462,500 0.0
Spain Banking US$ 225,000 Santander Overseas Bank (8%, Series D) 5,463,250 5,146,875 0.1
Total Preferred Stocks in Spain 5,463,250 5,146,875 0.1
United Engineering 750,000 AMEC PLC (6.50% Convertible) 968,501 845,250 0.0
Kingdom
Retail US$ 545,000 +++Signet Group (Convertible) (ADR)++ 2,194,907 4,291,875 0.1
Stores
Total Preferred Stocks in the United
Kingdom 3,163,408 5,137,125 0.1
United Airlines 69,400 USAir Group, Inc. (Convertible $4.375,
States Series B) 3,673,689 1,977,900 0.0
Automobiles & 20,000 Ford Motor Co. (8.40% Convertible,
Equipment Series A) 1,000,000 1,762,500 0.0
Banking 75,000 California Federal Bank (10.625%) 7,500,000 7,800,000 0.1
115,000 First Nationwide Bank (11.50%) 11,500,000 12,017,500 0.2
100,000 Fourth Financial Corp. (Convertible,
Class A) 2,500,000 2,825,000 0.0
130,300 Marine Midland Banks, Inc. (Adj.
Rate, Series A) 5,219,925 5,440,025 0.1
100,000 Onbancorp, Inc. (6.75% Convertible,
Series B) 2,668,750 2,412,500 0.0
-------------- -------------- ------
29,388,675 30,495,025 0.4
<PAGE>
Energy & 150,000 Grant Tensor Corp. (9.75% Convertible) 1,853,375 2,175,000 0.0
Petroleum 13,609 +++++Plains Resources, Inc. (Convertible,
Series C) 1,300,000 2,027,741 0.0
64,219 Santa Fe Energy Resources, Inc. (7%) 954,075 1,196,079 0.0
460,000 Santa Fe Energy Resources, Inc.
(Convertible, Class A) 4,082,500 4,427,500 0.1
-------------- -------------- ------
8,189,950 9,826,320 0.1
Health Care 1,080,000 US Surgical Corp. (Convertible) 24,354,000 28,620,000 0.4
Natural 85,000 Alumax Inc. (Convertible, Series A) 7,240,312 10,030,000 0.1
Resources 150,000 Cyprus Amax Minerals Co. (Convert-
ible, Series A) 9,188,313 9,150,000 0.1
348,700 Freeport-McMoRan Copper & Gold, Inc.
(Convertible Shares) 7,918,834 7,497,050 0.1
219,000 Freeport-McMoRan Inc. (Convertible--
Gold) 7,703,330 7,747,125 0.1
-------------- -------------- ------
32,050,789 34,424,175 0.4
Oil 447,200 Noble Drilling Corp. (Convertible) 10,745,382 9,950,200 0.1
Service
Paper & 300,000 Boise Cascade Corp. (Convertible,
Forest Series G) 6,337,500 8,287,500 0.1
Products 388,200 James River Corp. of Virginia (9%
Convertible, Series P) 6,696,450 9,510,900 0.1
-------------- -------------- ------
13,033,950 17,798,400 0.2
Publishing 59,862 Times Mirror Company (Convertible,
Series B) 1,386,166 1,204,723 0.0
Real 658,000 +++/+++++Catellus Development Corp. (7.25%
Estate Convertible Exchangeable, Series B) 30,686,250 26,649,000 0.4
Real 666,000 National Health Investors, Inc.
Estate (8.50% Convertible) 16,650,000 15,484,500 0.2
Investment 700,000 Prime Retail, Inc. (10.50%) 16,712,575 13,300,000 0.2
Trusts -------------- -------------- ------
33,362,575 28,784,500 0.4
Savings 619,900 Glendale Federal Savings Bank
Banks (8.75% Convertible, Series E) 15,070,337 21,076,600 0.3
Total Preferred Stocks in the
United States 202,941,763 212,569,343 2.7
Total Investments in Preferred
Stocks 246,094,698 260,585,805 3.3
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Face Value Percent of
COUNTRY Industries Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
Argentina Banking US$ 22,000,000 Banco de Galicia, 9% due 11/01/2003 $ 21,506,460 $ 14,630,000 0.2%
Banco Rio de la Plata:
US$ 50,000,000 (Class 3), 8.50% due 7/15/1998 50,428,125 42,500,000 0.5
US$ 53,500,000 8.75% due 12/15/2003 45,253,325 36,380,000 0.5
-------------- -------------- ------
117,187,910 93,510,000 1.2
Government Republic of Argentina:
Obligations US$ 145,000,000 Discount Notes, 7.125% due 3/31/2023 105,443,250 84,281,250 1.1
US$ 126,000,000 Floating Rate Bond, 7.312% due
3/31/2005, Series L 62,510,000 74,970,000 1.0
US$ 22,500,000 Global Bonds, 8.375% due 12/20/2003 16,943,750 16,256,250 0.2
US$ 324,000,000 Par Bonds, 5% due 3/31/2023 162,252,875 140,940,000 1.8
-------------- -------------- ------
347,149,875 316,447,500 4.1
Industrial US$ 1,000,000 Telefonica de Argentina S.A., 8.375%
due 10/01/2000 685,000 815,000 0.0
Telecommuni- US$ 2,000,000 Telecom Argentina S.A., 8.375% due
cations 10/18/2000 1,365,000 1,630,000 0.0
Total Fixed-Income Securities in
Argentina 466,387,785 412,402,500 5.3
Australia Food US$ 14,000,000 Burns, Philp & Company Ltd.,
Processing Convertible Bonds, 5.50% due
4/30/2004 11,976,950 11,550,000 0.1
Industrial US$ 26,410,000 Lend Lease Finance International
Corp., Ltd., Convertible Bonds, 4.75%
due 6/01/2003 28,765,793 28,192,675 0.4
Newspaper/ US$ 3,020,000 News International PLC, 5.375% due
Publishing 4/30/1996 1,115,703 2,648,775 0.0
Total Fixed-Income Securities in
Australia 41,858,446 42,391,450 0.5
<PAGE>
Brazil Government US$ 35,000,000 Brazil Exit Bonds, 6% due 9/15/2013 19,503,009 15,662,500 0.2
Obligations Republic of Brazil:
US$ 5,000,000 Discount Notes, 6.688% due 4/15/2024 3,100,000 2,725,000 0.0
US$ 37,830,000 IDU Floating Rate Bond 29,569,238 28,656,225 0.4
US$ 150,000,000 Par 4% due 4/15/2024 (Series YL3) 58,152,056 59,625,000 1.0
US$ 60,000,000 Par 4% due 4/15/2024 (Series YL4) 23,260,823 23,850,000 0.0
Total Fixed-Income Securities in
Brazil 133,585,126 130,518,725 1.6
Canada Cable 6,250,000 Rogers Cablesystem of America, 9.65%
due 1/15/2014 3,588,228 3,849,654 0.1
Government Canadian Government Bonds:
Obligations 25,000,000 6.50% due 6/01/2004 16,791,181 16,235,199 0.2
95,000,000 9.50% due 10/01/1998 72,847,969 73,082,298 0.9
US$ 2,000,000 Macmillan Bloedel Limited, Convertible
Bonds 5% due 5/01/2007 1,024,416 1,059,057 0.0
-------------- -------------- ------
90,663,566 90,376,554 1.1
Hotel/ US$ 23,500,000 +++++Four Seasons Hotel, Inc., 9.125%
Leisure due 7/01/2000 23,401,875 22,677,500 0.3
Industrial US$ 77,000,000 International Semi-Tech Micro-
electronics Inc., 11.50% due
8/15/2003 (b) 42,567,768 34,842,500 0.4
Oil & Mark Resources Inc., Convertible
Related Bonds:
US$ 7,250,000 7% due 4/15/2002 5,052,564 4,159,006 0.1
US$ 1,250,000 8% due 11/30/2004 943,556 841,178 0.0
14,500,000 Talisman Energy Inc. (Ex-Warrants),
8.50% due 12/01/2000 11,040,982 10,397,514 0.1
-------------- -------------- ------
17,037,102 15,397,698 0.2
Paper & 2,763,000 Domtar, Inc., 10.35% due 9/01/2006 1,694,692 1,940,623 0.0
Forest
Products
Real Estate Olympia & York Inc.:
57,194,000 +++++Series 1, 10.70% due 11/04/1995 29,626,733 25,238,214 0.3
34,000,000 +++++Series 2, 11% due 11/04/1998 18,060,242 15,003,310 0.2
-------------- -------------- ------
47,686,975 40,241,524 0.5
<PAGE>
Resources US$ 18,500,000 Sherritt Gordon, Ltd., 9.75% due
4/01/2003 18,624,375 18,453,750 0.2
67,000,000 Sheritt, Inc., 11% due 3/31/2004 48,454,704 48,290,064 0.6
32,500,000 Sifto Canada, Inc., 8.50% due
7/15/2000 32,375,187 30,306,250 0.4
-------------- -------------- ------
99,454,266 97,050,064 1.2
Total Fixed-Income Securities in
Canada 326,094,472 306,376,117 3.8
France Automobiles 5,500 Peugeot, Convertible Bonds, 2% due
1/01/2001 992,341 1,037,207 0.0
Banking 58,000 Societe Generale, Convertible Bonds
(New), 3.50% due 1/01/2000 7,499,838 8,076,249 0.1
Government ECU 2,000,000 Credit Local de France, 8.683% due
Obligations 10/16/2001 (b) 1,614,304 1,577,858 0.0
700,000,000 Government of France, 8.50% due
10/25/2019 132,737,864 145,594,292 1.9
ECU 175,000,000 Government of France, 8.25% due
4/25/2022 202,798,464 221,684,809 2.8
-------------- -------------- ------
337,150,632 368,856,959 4.7
Industrial 30,000 Alcatel Alsthom, Convertible Bonds,
2.50% due 1/01/2004 3,926,887 4,336,391 0.1
Insurance 35,500 Finaxa, Convertible Bonds, 3% due
1/01/2001 9,060,172 9,611,417 0.1
Multi-- 8,713 Compagnie Generale des Eaux, Con-
Industry vertible Bonds, 6% due 1/01/1998 4,859,722 5,474,713 0.1
Total Fixed-Income Securities in
France 363,489,592 397,392,936 5.1
Germany Banking 2,310,000 Commerzbank AG, Floating Rate
Convertible Bonds, 8.40% due 12/30/2000 1,556,456 2,422,353 0.0
Building US$ 41,100,000 Tarkett International, 9% due
Materials 3/01/2002 39,413,750 38,736,750 0.5
Government Bundesrepublic Deutscheland:
Obligations 50,000,000 6.75% due 4/01/2004 30,974,132 35,105,153 0.4
44,000,000 7.75% due 10/01/2004 28,786,523 32,752,764 0.4
100,000,000 7.50% due 11/11/2004 65,701,493 74,329,696 0.9
300,000,000 Treuhandanstalt, 7.50% due 9/09/2004 193,534,333 222,728,915 2.8
-------------- -------------- ------
318,996,481 364,916,528 4.5
<PAGE>
Government 64,000,000 Baden-Wuerttemberg, 6.20% due
Obligations-- 11/22/2013 37,148,769 43,038,231 0.5
Regional 57,500,000 Freie Hansestadt Hamburg, 6.08%
due 11/29/2018 33,152,404 37,919,166 0.5
165,000,000 Land Hessen, 6% due 11/29/2013 94,980,999 109,288,502 1.4
110,000,000 Mecklenberg Vorpommern, 6.15% due
6/16/2023 61,012,437 71,308,810 0.9
133,200,000 Nordrhein-Westfalen, 6.125% due
12/21/2018 76,238,083 88,899,472 1.1
Rheinland-Pfalz:
33,000,000 5.75% due 2/24/2014 18,324,663 21,488,039 0.3
64,000,000 6.08% due 11/29/2018 36,935,547 42,483,197 0.5
47,000,000 Sachsen-Anhalt, 6% due 1/10/2014 26,915,615 31,062,730 0.4
-------------- -------------- ------
384,708,517 445,488,147 5.6
Industrial US$ 1,000,000 Siemens Corp. (with Warrants), 8%
due 6/24/2002 (a) 1,318,750 1,329,500 0.0
Utilities-- US$ 5,875,000 Veba International Finance (Warrants),
Electric 6% due 4/06/2000 (a) 7,083,300 9,451,112 0.1
Total Fixed-Income Securities in
Germany 753,077,254 862,344,390 10.7
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Face Value Percent of
COUNTRY Industries Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <S><C> <S> <C> <C> <C>
Hong Industrial US$ 9,400,000 Johnson Electric Holdings Ltd.,
Kong Convertible Bonds, 4.50% due
11/05/2000 $ 8,405,029 $ 8,225,000 0.1%
Retail US$ 4,500,000 Dairy Farm International Holdings
Ltd., 6.50% due 5/10/2049 3,707,500 3,757,500 0.1
Total Fixed-Income Securities in
Hong Kong 12,112,529 11,982,500 0.2
<PAGE>
Indonesia Industrial US$ 2,000,000 PT Indorayon, Convertible Bonds,
5.50% due 10/01/2002 2,363,125 2,180,000 0.0
Total Fixed-Income Securities in
Indonesia 2,363,125 2,180,000 0.0
Italy Telecommuni- Softe SA-LUX:
cations 16,760,000,000 8.75% due 3/24/1997 (Ex-Warrants) 10,756,360 9,150,000 0.1
11,500,000,000 Convertible Bonds, 4.25% due 7/30/1998 7,894,814 7,616,348 0.1
Total Fixed-Income Securities in
Italy 18,651,174 16,766,348 0.2
Japan Automobiles 400,000,000 Toyota Motor Corp., Convertible
& Equipment Bonds, 1.20% due 1/28/1998 2,477,431 4,732,770 0.1
Electronics 988,000,000 Matsushita Electric Works, Convert-
ible Bonds, 2.70% due 5/31/2002 9,691,544 13,112,963 0.2
Insurance 13,000,000 Mitsui Marine & Fire Insurance
Co., Ltd., 0.70% due 3/31/2003 118,211 138,495 0.0
8,000,000 Nichido Fire & Marine Insurance Co.,
Ltd., 1% due 3/31/2003 75,240 86,180 0.0
-------------- -------------- ------
193,451 224,675 0.0
Total Fixed-Income Securities in
Japan 12,362,426 18,070,408 0.3
Korea Energy US$ 6,250,000 Ssangyong Oil Corp., 3.75% due
12/31/2008 6,681,062 5,968,750 0.1
Total Fixed-Income Securities in
Korea 6,681,062 5,968,750 0.1
<PAGE>
Mexico Government US$ 165,500,000 Banco Nacional (BNCE), 7.25% due
Obligations 2/02/2004 134,186,200 109,230,000 1.4
US$ 32,500,000 +++++Petroleos Mexicanos, 8.625% due
12/01/2023 15,772,500 19,500,000 0.3
United Mexican States:
US$ 18,583,000 8.50% due 9/15/2002 15,096,445 13,565,590 0.2
US$ 85,000,000 Floating Notes, Series A, 6.687%
due 12/31/2019 72,635,500 55,568,750 0.7
US$ 38,000,000 Floating Notes, Series B, 6.765%
due 12/31/2019 32,631,250 24,842,500 0.3
US$ 2,000,000 Floating Notes, Series C, 6.937%
due 12/31/2019 1,712,500 1,307,500 0.0
US$ 22,000,000 Par Bonds, Series A, 6.25% due
12/31/2019 10,806,250 11,440,000 0.1
US$ 87,000,000 Par Bonds, Series B, 6.25% due
12/31/2019 43,361,473 45,240,000 0.6
United Mexican States, Rights:
US$ 152,764,000 (Series A) -- -- 0.0
US$ 145,460,000 (Series B) -- -- 0.0
US$ 3,076,000 (Series C) -- -- 0.0
-------------- -------------- ------
326,202,118 280,694,340 3.6
Total Fixed-Income Securities in
Mexico 326,202,118 280,694,340 3.6
New Utilities-- 2,000,000 Natural Gas Corp. Holdings, Convertible
Zealand Gas Bonds, 10.50% due 10/14/1997 1,186,318 2,272,036 0.0
Total Fixed-Income Securities in
New Zealand 1,186,318 2,272,036 0.0
Norway Industrial US$ 14,000,000 Wilrig AS, 11.25% due 3/15/2004 14,000,000 13,930,000 0.2
Total Fixed-Income Securities in
Norway 14,000,000 13,930,000 0.2
Portugal Banking ECU 18,650,000 Banco Commercial Portuguese, Con-
vertible Bonds, 8.75% due 5/21/2002 25,610,950 25,112,206 0.3
Total Fixed-Income Securities in Portugal 25,610,950 25,112,206 0.3
Spain Government Government of Spain:
Obligations 6,000,000,000 10.90% due 8/30/2003 45,619,648 45,958,486 0.6
4,000,000,000 8% due 5/30/2004 24,493,223 25,601,954 0.3
19,760,000,000 10% due 2/28/2005 140,494,494 142,670,899 1.8
Total Fixed-Income Securities in Spain 210,607,365 214,231,339 2.7
<PAGE>
Sweden Industrial ECU 7,000,000 SKF-AB Lyons, Convertible Bonds,
8.01% due 7/26/2002 5,169,089 5,060,979 0.1
Multi- ECU 1,000,000 Investor International Placements,
Industry Convertible Bonds, 7.25% due 6/21/2001 1,001,412 1,363,081 0.0
Total Fixed-Income Securities in
Sweden 6,170,501 6,424,060 0.1
Switzer- Chemicals US$ 24,945,000 +++++Ciba-Geigy Corp., Convertible Bonds,
land 6.25% due 3/15/2016 25,632,050 22,949,400 0.3
Industrial 1,401,000 Ciba-Geigy AG, Convertible Bonds, 2%
due 8/09/1998 1,178,587 1,513,766 0.0
Total Fixed-Income Securities in
Switzerland 26,810,637 24,463,166 0.3
Taiwan Agriculture US$ 1,000,000 President Enterprises, 0.071% due
7/22/2001 (b) 995,000 1,172,500 0.0
Metals US$ 2,220,000 Tung Ho Steel Enterprise, Convertible
Bonds, 4% due 7/26/2001 2,243,700 2,697,300 0.0
Total Fixed-Income Securities in
Taiwan 3,238,700 3,869,800 0.0
United Building 3,250,000 Redland Capital PLC, Convertible
Kingdom Materials Bonds, 7.25% due 1/28/2002 5,382,804 4,866,225 0.1
Energy 29,990,000 Elf Enterprises Finance PLC, Convert-
ible Bonds, 8.75% due 6/27/2006 48,109,352 46,714,673 0.6
Financial 3,550,000 SG Warburg Group, Convertible Bonds,
Services 6.50% due 8/04/2008 5,416,350 5,558,324 0.1
3,500,000 TransAtlantic Holdings PLC, Convert-
ible Bonds, 5.50% due 4/30/2009 4,521,101 4,113,550 0.1
-------------- -------------- ------
9,937,451 9,671,874 0.2
Food 7,750,000 Tate & Lyle International, Convertible
Bonds, 5.75% due 3/21/2001 10,092,554 10,481,100 0.1
Government 37,500,000 United Kingdom Treasury Gilt, 8%
Oblibations due 6/10/2003 56,327,454 58,744,875 0.7
Industrial US$ 1,890,000 HIH Capital Ltd., Convertible Bond
(Bearer), 7.50% due 9/25/2006 1,005,400 1,304,100 0.0
US$ 2,000,000 +++++HIH Capital Ltd., Convertible Bonds,
7.50% due 9/25/2006 1,665,000 1,380,000 0.0
6,375,000 Hanson PLC, Convertible Bonds, 9.50%
due 1/31/2006 11,769,997 10,489,552 0.1
-------------- -------------- ------
14,440,397 13,173,652 0.1
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Face Value Percent of
COUNTRY Industries Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <S><C> <S> <C> <C> <C>
United Multi-- 4,875,000 English China Clays PLC, Convertible
Kingdom Industry Bonds, 6.50% due 9/30/2003 $ 8,364,034 $ 7,377,825 0.1%
(concluded)
Real Estate 500,000 Land Securities PLC, Convertible
Bonds, 6.75% due 12/31/2002 679,603 752,675 0.0
Retail 8,350,000 Sainsbury (J.) PLC, Convertible Bonds,
8.50% due 11/19/2005 16,072,715 17,274,897 0.2
Utilities 2,000,000 National Power PLC, Convertible
Bonds, 6.25% due 9/23/2008 3,262,275 3,372,950 0.0
Total Fixed-Income Securities in the
United Kingdom 172,668,639 172,430,746 2.1
United Aerospace Rohr Industries, Inc.:
States 7,500,000 11.625% due 5/15/2003 7,500,000 7,800,000 0.1
5,500,000 Convertible Bonds, 7.75% due
5/15/2004 5,500,000 6,820,000 0.1
-------------- -------------- ------
13,000,000 14,620,000 0.2
Airlines 8,500,000 UAL Corporation, Convertible Bonds,
6.375% due 2/01/2025 7,629,313 8,011,250 0.1
USAir Inc.:
11,000,000 10% due 7/01/2003 8,529,375 8,910,000 0.1
4,469,121 9.33% due 1/01/2006 4,357,840 3,798,753 0.1
19,300,000 10.375% due 3/01/2013 17,593,625 17,273,500 0.2
7,500,000 USAir Pass Thru, 9.625% due 9/01/2003
(d) 7,495,625 6,712,500 0.1
-------------- -------------- ------
45,605,778 44,706,003 0.6
Automotive 18,000,000 +++++AM General Corporation, 12.875% due
5/01/2002 17,904,060 18,000,000 0.2
<PAGE>
Banking 3,000,000 Roosevelt Financial Group, Inc., 9.50%
due 8/01/2002 3,000,000 3,018,750 0.0
Broadcasting/ 12,500,000 +++++Continental Cablevision, Inc., 9.50%
Cable due 8/01/2013 11,317,500 12,390,625 0.2
Building & 39,250,000 United International Holdings, Inc.,
Construction 43.768% due 11/15/1999 (b) 21,214,474 22,765,000 0.3
Building 15,000,000 DalTile International, Inc., 11.955%
Materials due 7/15/1998 (b) 9,951,064 9,975,000 0.1
Computers 20,000,000 Dell Computer Corp., 11% due 8/15/2000 20,077,500 21,400,000 0.3
Energy 12,374,000 Transamerica Refining Corp., 18.29%
due 2/15/1998 (b) 7,007,038 7,579,075 0.1
33,801,000 TransTexas Gas Corp., 10.50% due
9/01/2000 33,800,233 35,491,050 0.5
-------------- -------------- ------
40,807,271 43,070,125 0.6
Financial Chf 4,010,000 Chrysler Financial Corp., 5.75% due
Services 6/18/1996 1,914,011 3,534,624 0.0
Lomas Mortgage USA, Inc.:
11,000,000 9.75% due 10/01/1997 10,465,250 8,910,000 0.1
7,500,000 10.25% due 10/01/2002 7,000,000 5,550,000 0.1
2,351,000 US Trails, Senior Secured Notes, 12%
due 7/15/1998 1,923,945 1,293,050 0.0
-------------- -------------- ------
21,303,206 19,287,674 0.2
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 7,735,000 0.1
-------------- -------------- ------
14,065,250 13,711,000 0.2
Homebuilding & 30,450,000 Baldwin Co., 10.375% due 8/01/2003 29,264,937 19,411,875 0.2
Construction 37,500,000 Beazer Homes USA, Inc., 9.00% due
3/01/2004 35,597,000 31,687,500 0.4
29,500,000 K. Hovnanian Enterprises, 9.75% due
6/01/2005 28,874,300 22,788,750 0.3
MDC Holdings Inc.:
30,000,000 11.125% due 12/15/2003 28,916,500 25,500,000 0.3
2,500,000 8.75% due 12/15/2005 2,150,000 2,137,500 0.0
28,250,000 Presley Companies, Senior Notes, 12.50%
due 7/01/2001 28,190,312 23,447,500 0.3
16,350,000 Webb (Del E.) Corp., 9% due 2/15/2006 13,367,325 13,897,500 0.2
-------------- -------------- ------
166,360,374 138,870,625 1.7
<PAGE>
Hospital 1,000,000 Novacare, Inc., Convertible Bonds, 5.50%
Management due 1/15/2000 857,500 820,000 0.0
Industrial 15,850,000 +++++Allison Engine, Inc., 10% due
12/01/2003 15,579,500 17,652,937 0.2
20,000,000 Crown Packaging Ltd., 10.75% due
11/01/2000 20,000,000 19,550,000 0.3
10,000,000 Easco Corp., 10% due 3/15/2001 10,005,000 9,900,000 0.1
19,000,000 Envirotest Systems Corp., 9.125%
due 3/15/2001 18,412,210 15,010,000 0.2
27,250,000 Genmar Holdings, Inc., 13.50% due
7/15/2001 27,127,100 27,522,500 0.4
8,590,000 Hanson America, Convertible Bonds, 2.39%
due 3/01/2001 6,536,596 6,528,400 0.1
9,000,000 Merisel, Inc., 12.50% due 12/31/2004 9,000,000 8,100,000 0.1
14,000,000 OSI Specialties Corp., 9.25% due
10/01/2003 14,000,000 13,860,000 0.2
30,500,000 Plastic Specialties & Technology, Inc.,
11.25% due 12/01/2003 30,540,000 27,221,250 0.3
-------------- -------------- ------
151,200,406 145,345,087 1.9
Insurance 7,750,000 Horace Mann Educators, Inc., Con-
vertible Bonds, 4% due 12/01/1999 (b) 7,682,500 7,304,375 0.1
27,500,000 +++++Mutual Life Insurance Co., 11.25%
due 8/15/2024 (b) 17,174,610 17,462,500 0.2
12,500,000 Nacolah Holding Corp., 9.50% due
12/01/2003 12,500,000 11,531,250 0.1
-------------- -------------- ------
37,357,110 36,298,125 0.4
Merchandising 5,000,000 Penn Traffic Co., 8.625% due 12/15/2003 4,958,800 4,612,500 0.1
12,000,000 Price Club Co., Convertible Bonds, 5.50%
due 2/28/2012 11,213,250 10,530,000 0.1
-------------- -------------- ------
16,172,050 15,142,500 0.2
Oil & Related Columbia Gas System, Inc.:
1,500,000 7.50% due 6/01/1997 1,571,250 1,890,000 0.0
4,000,000 9.50% due 10/10/2019 4,310,000 5,740,000 0.1
9,500,000 Gerrity Oil & Gas Corp., 11.75% due
7/15/2004 9,500,000 8,455,000 0.1
PDV America, Inc.:
35,000,000 7.25% due 8/01/1998 34,856,150 32,418,750 0.4
10,000,000 7.75% due 8/01/2000 10,062,500 9,050,000 0.1
26,362,500 +++++Presidio Oil Co., 11.50% due 9/15/2000 26,963,000 22,144,500 0.3
5,000,000 Santa Fe Energy Resources, Inc., 11%
due 5/15/2004 4,963,300 5,237,500 0.1
6,000,000 USX Marathon Oil Co., 7% due 6/15/2017 5,650,000 5,250,000 0.1
-------------- -------------- ------
97,876,200 90,185,750 1.2
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Face Value Percent of
COUNTRY Industries Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Real Estate 24,500,000 +++++Alexander Haagen Properties Inc.,
States Exchangeable Debentures, 7.25% due
(concluded) 12/01/2003 $ 24,348,750 $ 20,457,500 0.3%
25,000,000 +++++First Washington Realty, 8.25% due
6/27/1999 25,000,000 23,500,000 0.3
6,500,000 LTC Properties, Inc., Convertible Bonds,
9.75% due 7/01/2004 6,500,000 8,320,000 0.1
27,000,000 +++++Malan Realty Investors, Inc., Con-
vertible Bonds, 8.50% due 7/01/2003 27,000,000 23,220,000 0.3
24,050,764 RTC Commercial Mortgage, Class E, 8.25%
due 12/25/2020 (d) 23,682,487 21,765,941 0.3
23,336,300 Vista Properties, Inc., 13.75%
due 10/31/2001 (c) 11,748,460 8,984,475 0.1
-------------- -------------- ------
118,279,697 106,247,916 1.4
Real 7,000,000 Centerpoint Properties Corp., Con-
Estate vertible Bonds, 8.22% due 1/15/2004 7,000,000 7,280,000 0.1
Investment 30,000,000 First Union Real Estate, 8.875%
Trusts due 10/01/2003 29,756,100 26,100,000 0.3
12,500,000 Liberty Property Trust, Convertible
Bonds, 8% due 7/01/2001 12,500,000 12,000,000 0.2
Meditrust, Convertible Bonds:
6,000,000 7% due 3/01/1998 6,035,000 5,940,000 0.1
23,500,000 7.50% due 3/01/2001 23,500,000 22,677,500 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., Con-
vertible Bonds, 7.375% due 4/01/1998 5,125,000 4,800,000 0.1
22,000,000 Nationwide Health Properties Inc., Con-
vertible Bonds, 6.25% due 1/01/1999 21,950,000 21,010,000 0.3
9,545,000 Phoenix Home Life-Mutual Insurance Co.,
8% due 11/25/2023 9,545,000 8,924,575 0.1
5,500,000 Sizeler Property Investors, Inc., Con-
vertible Bonds, 8% due 7/15/2003 5,505,000 4,730,000 0.1
-------------- -------------- ------
125,791,100 117,562,075 1.7
Resources 37,500,000 Freeport-McMoRan Resources, 8.75%
due 2/15/2004 36,378,750 35,531,250 0.4
<PAGE>
Savings Banks 15,000,000 Crossland Federal Savings Bank, 9%
due 9/01/2003 15,634,250 14,400,000 0.2
21,400,000 First Federal Financial Corporation,
11.75% due 10/01/2004 21,401,250 21,721,000 0.3
-------------- -------------- ------
37,035,500 36,121,000 0.5
Supermarkets 39,650,000 Eagle Food Centers Inc., 8.625% due
4/15/2000 36,095,837 21,014,500 0.3
9,500,000 Pueblo Xtra International Inc., 9.50%
due 8/01/2003 8,845,000 8,431,250 0.1
5,500,000 Ralphs Grocery Company, 10.25% due
7/15/2002 5,545,000 5,445,000 0.1
-------------- -------------- ------
50,485,837 34,890,750 0.5
Telecommuni- 18,500,000 Allnet Communication Services,
cations 9% due 5/15/2003 18,275,141 19,378,750 0.2
28,000,000 Call Net Enterprise, Inc.,
13.07% due 12/01/2004 (b) 15,531,539 15,540,000 0.2
11,000,000 Diamond Cable Communications, 13.25%
due 9/30/2004 (b) 6,237,924 6,641,250 0.1
15,061,000 Marcus Cable Co. L.P., 13.50%
due 8/01/2004 (b) 8,632,790 8,885,990 0.1
Nextel Communications, Inc. (b):
3,000,000 11.21% due 9/01/2003 2,098,265 1,657,500 0.0
33,500,000 9.96% due 8/15/2004 21,825,011 16,331,250 0.2
19,000,000 Paging Network, Inc., 8.875% due
2/01/2006 16,434,844 16,815,000 0.2
-------------- -------------- ------
89,035,514 85,249,740 1.0
Textiles & 12,500,000 Consoltex Group, Inc., 11% due
Apparel 10/01/2003 12,530,000 11,250,000 0.1
23,500,000 Salant Corp., Secured, 10.50% due
12/31/1998 23,030,000 21,737,500 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 46,310,000 0.6
Transportation 8,500,000 Eletson Holdings Inc., 9.25% due
11/15/2003 8,537,500 8,096,250 0.1
22,000,000 OMI Corp., 10.25% due 11/01/2003 21,910,000 19,360,000 0.2
-------------- -------------- ------
30,447,500 27,456,250 0.3
Transportation/ 5,000,000 AMR Corp., 6.125% due 11/01/2024 4,072,439 4,812,500 0.1
Airline 5,000,000 +++++NWA Trust #2, Class C, 11.30% due
6/21/2014 5,000,000 5,217,187 0.1
-------------- -------------- ------
9,072,439 10,029,687 0.2
<PAGE>
Utilities-- CTC Mansfield Funding Corp.:
Electric 15,500,000 10.25% due 3/30/2003 16,020,000 15,267,500 0.2
12,000,000 11.125% due 9/30/2016 12,820,000 11,910,000 0.2
40,000,000 California Energy Co., Inc., 10.25%
due 1/15/2004 (b) 33,636,718 31,000,000 0.4
8,000,000 Calpine Corp., Inc., 9.25% due 2/01/2004 7,277,500 6,820,000 0.1
Cleveland Electric Illuminating Company
Inc., First Mortgage:
5,000,000 9.30% due 7/26/1999 5,437,500 4,881,250 0.1
12,500,000 9.25% due 7/29/1999 13,562,500 12,187,500 0.2
3,000,000 9.05% due 8/15/2001 3,093,750 2,857,500 0.0
7,500,000 7.625% due 8/01/2002 7,462,500 6,525,000 0.1
5,000,000 7.375% due 6/01/2003 4,700,000 4,225,000 0.1
El Paso Funding:
4,050,000 9.20% due 7/02/1997 3,286,000 2,490,750 0.0
25,000,000 10.375% due 1/02/2011 21,170,000 15,375,000 0.2
62,040,000 10.75% due 4/01/2013 52,996,150 38,154,600 0.5
23,000,000 PS of New Mexico, First PV Funding,
10.25% due 10/01/2012 23,000,000 21,907,500 0.3
Public Service Company of New Mexico:
14,800,000 10.30% due 1/15/2014 14,416,500 14,800,000 0.2
23,000,000 10.15% due 10/15/2016 21,803,125 22,712,500 0.3
Toledo Edison Co.:
2,000,000 9.30% due 4/01/1998 2,130,000 1,970,000 0.0
15,425,000 7.25% due 8/01/1999 15,425,000 13,882,500 0.2
3,000,000 9.50% due 4/01/2001 3,221,250 2,925,000 0.0
1,500,000 7.85% due 3/31/2003 1,296,450 1,312,500 0.0
2,000,000 7.91% due 4/01/2003 1,992,500 1,750,000 0.0
-------------- -------------- ------
264,747,443 232,954,100 3.1
Total Fixed-Income Securities in the
United States 1,502,833,823 1,381,959,032 18.0
Total Investments in Fixed-Income
Securities 4,425,992,042 4,331,780,849 55.1
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Face Value Percent of
COUNTRY Amount Short-Term Securities Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
United Commercial 89,099,000 General Electric Capital Corp.,
States Paper* 5.93% due 5/01/1995 $ 89,069,647 $ 89,069,647 1.2%
10,000,000 Matterhorn Capital Corp., 5.97%
due 5/12/1995 9,978,442 9,978,442 0.1
Total Short-Term Securities in the
United States 99,048,089 99,048,089 1.3
Mexico Commercial Mexican Cetes (Certificados de la
Paper*-- Tesoreria de la Federacion):
Foreign 30,533,830 37% due 5/04/1995 5,359,731 5,093,575 0.1
30,000,000 29.51% due 5/11/1995 4,689,853 4,932,663 0.1
59,850,750 38.70% due 6/29/1995 7,904,840 9,009,693 0.1
50,000,000 43.478% due 7/06/1995 6,866,699 7,435,511 0.1
125,000,000 43.011% due 7/13/1995 17,456,099 18,431,742 0.2
61,000,000 38.60% due 7/20/1995 10,642,386 8,872,077 0.1
42,000,000 30.064% due 8/03/1995 5,456,729 5,934,171 0.1
18,653,450 60.149% due 2/01/1996 1,923,284 2,131,555 0.0
82,186,000 26.249% due 2/15/1996 10,655,891 9,189,138 0.1
212,150,560 24.749% due 2/22/1996 25,571,578 23,496,474 0.3
US$ 10,000,000 Tesobonos, 18% due 1/25/1996 8,680,714 8,861,757 0.1
Total Short-Term Securities in Mexico 105,207,804 103,388,356 1.3
Total Investments in Short-Term
Securities 204,255,893 202,436,445 2.6
Total Investments $7,543,929,849 7,743,729,413 98.3
==============
Unrealized Depreciation on Forward Foreign Exchange Contracts** (23,141,241) (0.3)
Variation Margin on Financial Futures Contracts*** (232,670) 0.0
Other Assets Less Liabilities 159,160,761 2.0
-------------- ------
Net Assets $7,879,516,263 100.0%
============== ======
<PAGE>
<FN>
(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)Represents a zero coupon or step bond; the interest rate shown is the effective yield
at the time of purchase.
(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.
*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 April 30, 1995 were as follows:
<CAPTION>
Unrealized
Foreign Expiration Appreciation
Currency Sold Date (Depreciation)
<S> <C> <S> <C>
Chf 7,000,000 June 1995 $ 48,859
Chf 40,000,000 July 1995 449,033
DM 361,500,000 May 1995 (5,738,526)
DM 715,000,000 June 1995 2,521,566
DM 70,000,000 July 1995 853,821
Dkr 7,000,000 July 1995 (30,009)
ECU 83,000,000 May 1995 (4,836,680)
ECU 70,000,000 June 1995 (608,770)
Frf 400,000,000 May 1995 (1,821,131)
Frf 135,000,000 June 1995 (21,824)
Frf 320,000,000 July 1995 1,084,490
Pound Sterling 57,000,000 May 1995 386,691
Pound Sterling 50,000,000 June 1995 (844,444)
Nlg 35,000,000 May 1995 (420,528)
Nlg 73,000,000 June 1995 405,077
Nlg 65,000,000 July 1995 338,821
Pta 19,500,000,000 May 1995 (6,491,183)
Pta 4,500,000,000 July 1995 (1,115,740)
YEN 15,970,000,000 May 1995 (8,623,329)
YEN 7,000,000,000 June 1995 873,538
YEN 8,000,000,000 July 1995 449,027
Total Unrealized Depreciation--Net, on
Forward Foreign Exchange Contracts
(US$ Commitment--$2,075,991,880) $(23,141,241)
============
***Financial Futures Contracts purchased as of May 31, 1995 were as follows:
<PAGE>
<CAPTION>
Number of Expiration Value
Contracts Issue Date (Note 1a)
<C> <S> <S> <C>
330 Standard & Poor's 500 Index June 1995 $85,263,750
Total Financial Futures Contracts Purchased
(Total Contract Price--$81,671,750) $85,263,750
===========
++American Depositary Receipt (ADR).
++++Investment Companies 5% or more of whose outstanding securities are held
by the Fund (such companies are defined as "Affiliated Companies" in section
2(a)(3) of the Investment Company Act of 1940) are as follows:
<CAPTION>
Net Share Net Dividend
Industry Affiliate Activity Cost Income
<S> <S> <C> <C> <C>
Retail Stores Filene's Basement Corp. -- -- --
+++Non-income producing security.
+++++Restricted securities as to resale. The value of the Fund's investment in
restricted securities was approximately $295,470,000, representing 3.75% of
net assets.
<CAPTION>
Aquisition Value
Issue Date Cost (Note 1a)
<S> <S> <C> <C>
Alexander Haagen Properties, Inc.,
Exchangeable Debentures, 7.25% due
12/27/2003 12/27/1993 $ 24,348,750 $ 20,457,500
Allison Engine, Inc., 10.00% due 12/01/2003 12/15/1993 15,579,500 17,652,937
AM General Corporation, 12.875% due
5/01/2002 4/21/1995 17,904,060 18,000,000
Catellus Development Corp. (7.25%
Convertible Exchangeable, Series B) 10/28/1993 30,686,250 26,649,000
Ciba-Geiby Corp., Convertible Bonds, 6.25%
due 3/15/2016 3/23/1993 25,632,050 22,949,400
Continental Cablevision, Inc., 9.50%
due 8/01/2013 8/22/1994 11,317,500 12,390,625
First Washington Realty, 8.25% due
6/27/1999 6/27/1994 25,000,000 23,500,000
Four Seasons Hotel, Inc., 9.125% due
7/01/2000 6/23/1993 23,401,875 22,677,500
HIH Capital Ltd., Convertible Bonds,
7.50% due 9/25/2006 7/23/1992 1,665,000 1,380,000
Malan Realty Investors, Inc., Convertible
Bonds, 8.50% due 7/01/2003 6/24/1994 27,000,000 23,220,000
Mutual Life Insurance Co., 11.25%
due 8/15/2024 8/08/1994 17,174,610 17,462,500
NWA Trust #2, Class C, 11.30% due
6/21/2014 12/20/1994 5,000,000 5,217,187
Olympia & York Inc.:
Series 1, 10.70% due 11/04/1995 8/19/1993 29,626,733 25,238,214
Series 2, 11% due 11/04/1998 8/19/1993 18,060,242 15,003,310
Petroleos Mexicanos, 8.625%
due 12/01/2023 1/29/1993 15,772,500 19,500,000
Plains Resources, Inc. (Convertible,
Series C) 7/14/1994 1,300,000 2,027,741
Presidio Oil Co., 11.50% due 9/15/2000 8/03/1993 26,963,000 22,144,500
$316,432,070 $295,470,414
============ ============
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of April 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$7,543,929,849) (Note 1a) $7,743,729,413
Cash 496,019
Receivables:
Securities sold $111,520,183
Interest 106,771,202
Capital shares sold 23,507,092
Dividends 12,805,318 254,603,795
------------
Prepaid registration fees and other assets (Note 1g) 8,306,317
--------------
Total assets 8,007,135,544
--------------
Liabilities: Unrealized depreciation on forward foreign exchange contracts (Note 1d) 23,141,241
Payables:
Securities purchased 53,834,932
Capital shares redeemed 24,390,887
Distributor (Note 2) 4,811,269
Investment adviser (Note 2) 4,156,873
Variation margin (Note 1d) 232,670 87,426,631
------------
Accrued expenses and other liabilities 17,051,409
--------------
Total liabilities 127,619,281
--------------
Net Assets: Net assets $7,879,516,263
==============
<PAGE>
Net Assets Class A Shares of Common Stock, $0.10 par value, 200,000,000 shares authorized $ 10,731,381
Consist of: Class B Shares of Common Stock, $0.10 par value, 900,000,000 shares authorized 48,654,252
Class C Shares of Common Stock, $0.10 par value, 200,000,000 shares authorized 388,288
Class D Shares of Common Stock, $0.10 par value, 900,000,000 shares authorized 1,310,094
Paid-in capital in excess of par 7,681,223,856
Undistributed investment income--net 196,136,399
Accumulated realized capital losses on investments and foreign currency
transactions--net (234,785,344)
Unrealized appreciation on investments and foreign currency transactions--net 175,857,337
--------------
Net assets $7,879,516,263
==============
Net Asset Class A--Based on net assets of $1,398,749,619 and 107,313,809 shares outstanding $ 13.03
Value: ==============
Class B--Based on net assets of $6,260,316,694 and 486,542,520 shares outstanding $ 12.87
==============
Class C--Based on net assets of $49,771,028 and 3,882,880 shares outstanding $ 12.82
==============
Class D--Based on net assets of $170,678,922 and 13,100,942 shares outstanding $ 13.03
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1995
<S> <S> <C> <C>
Investment Interest and discount earned (net of $19,833 foreign withholding tax) $ 219,563,792
Income Dividends (net of $1,487,143 foreign withholding tax) 49,325,817
(Notes 1e& Other 106,891
1f): --------------
Total income 268,996,500
--------------
<PAGE>
Expenses: Distribution fees--Class B (Note 2) 30,343,819
Investment advisory fees (Note 2) 26,236,085
Transfer agent fees--Class B (Note 2) 4,588,225
Custodian fees 1,492,403
Transfer agent fees--Class A (Note 2) 823,233
Printing and shareholder reports 362,078
Accounting services (Note 2) 297,225
Registration fees (Note 1g) 205,177
Distribution fees--Class C (Note 2) 142,601
Account maintenance fees--Class D (Note 2) 129,649
Professional fees 99,933
Transfer agent fees--Class D (Note 2) 66,031
Transfer agent fees--Class C (Note 2) 22,871
Directors' fees and expenses 18,909
Pricing fees 8,449
Other 61,634
--------------
Total expenses 64,898,322
--------------
Investment income--net 204,098,178
--------------
Realized & Realized gain (loss) from:
Unrealized Investments--net $ 66,683,033
Gain (Loss) Foreign currency transactions--net (142,859,379) (76,176,346)
on Invest- -------------
ments & Change in unrealized appreciation on:
Foreign Investments--net 130,751,906
Currency Foreign currency transactions--net 9,097,717 139,849,623
Transactions-- ------------- --------------
Net (Notes Net realized and unrealized gain on investments and foreign currency transactions 63,673,277
1c, 1d, 1f --------------
& 3): Net Increase in Net Assets Resulting from Operations $ 267,771,455
==============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 204,098,178 $ 261,655,320
Realized gain (loss) on investments and foreign currency transactions--net (76,176,346) 27,450,270
Change in unrealized appreciation/depreciation on investments and foreign currency
transactions--net 139,849,623 (244,977,781)
-------------- --------------
Net increase in net assets resulting from operations 267,771,455 44,127,809
-------------- --------------
Dividends & Investment income--net:
Distributions Class A (22,918,601) (42,294,885)
to Share- Class B (76,361,294) (157,338,890)
holders Class C (284,315) --
(Note 1h): Class D (1,541,908) --
Realized gain on investments--net:
Class A (31,500,181) (16,636,230)
Class B (150,016,954) (80,810,426)
Class C (426,507) --
Class D (2,156,668) --
-------------- --------------
Net decrease in net assets resulting from dividends and distributions to
shareholders (285,206,428) (297,080,431)
-------------- --------------
Capital Share Net increase in net assets derived from capital share transactions 69,600,194 2,862,952,855
Transactions -------------- --------------
(Note 4):
Net Assets: Total increase in net assets 52,165,221 2,610,000,233
Beginning of period 7,827,351,042 5,217,350,809
-------------- --------------
End of period* $7,879,516,263 $7,827,351,042
============== ==============
<FN>
*Undistributed investment income--net $ 196,136,399 $ 93,144,339
============== ==============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been
derived from information provided in the financial Class A
statements. For the Six
Months Ended For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: April 30, 1995++++ 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.07 $ 13.52 $ 11.92 $ 12.16 $ 10.37
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .39 .60 .39 .36 .55
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net .09 (.31) 2.14 .89 2.24
---------- ---------- ---------- ---------- ----------
Total from investment operations .48 .29 2.53 1.25 2.79
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.22) (.51) (.81) (.89) (.45)
Realized gain on investments--net (.30) (.23) (.12) (.60) (.55)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.52) (.74) (.93) (1.49) (1.00)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.03 $ 13.07 $ 13.52 $ 11.92 $ 12.16
========== ========== ========== ========== ==========
Total Based on net asset value per share 3.98%++ 2.14% 22.61% 11.78% 28.89%
Investment ========== ========== ========== ========== ==========
Return:**
Ratios to Expenses .89%* .89% .93% 1.07% 1.29%
Average ========== ========== ========== ========== ==========
Net Assets: Investment income--net 6.28%* 4.60% 3.90% 10.82% 8.96%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $1,398,750 $1,357,906 $ 917,806 $ 245,839 $ 72,702
Data: ========== ========== ========== ========== ==========
Portfolio turnover 18.49% 57.04% 50.35% 59.56% 81.21%
========== ========== ========== ========== ==========
<PAGE>
<CAPTION>
The following per share data and ratios have been
derived from information provided in the financial Class B
statements. For the Six
Months Ended For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: April 30, 1995++++ 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.91 $ 13.38 $ 11.83 $ 12.10 $ 10.33
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .32 .46 .28 .22 .44
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net .10 (.31) 2.11 .91 2.22
---------- ---------- ---------- ---------- ----------
Total from investment operations .42 .15 2.39 1.13 2.66
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.16) (.39) (.72) (.80) (.34)
Realized gain on investments--net (.30) (.23) (.12) (.60) (.55)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.46) (.62) (.84) (1.40) (.89)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 12.87 $ 12.91 $ 13.38 $ 11.83 $ 12.10
========== ========== ========== ========== ==========
Total Based on net asset value per share 3.47%++ 1.13% 21.42% 10.64% 27.48%
Investment ========== ========== ========== ========== ==========
Return:**
Ratios to Expenses, excluding distribution fees .92%* .91% .95% 1.09% 1.31%
Average ========== ========== ========== ========== ==========
Net Assets: Expenses 1.92%* 1.91% 1.95% 2.09% 2.31%
========== ========== ========== ========== ==========
Investment income--net 5.25%* 3.58% 2.87% 11.95% 7.98%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $6,260,317 $6,457,130 $4,299,545 $ 958,949 $ 161,328
Data: ========== ========== ========== ========== ==========
Portfolio turnover 18.49% 57.04% 50.35% 59.56% 81.21%
========== ========== ========== ========== ==========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Aggregate total investment return.
++++Based on average shares outstanding during the period.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
The following per share data and ratios
have been derived from information Class C Class D
provided in the financial statements. For the Six For the Period For the Six For the Period
Months Ended Oct. 21, 1994++ Months Ended Oct. 21, 1994++
Increase (Decrease) in Net Asset Value: April 30, 1995++++ to Oct. 31, 1994 April 30, 1995++++ to Oct. 31, 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.91 $ 12.91 $ 13.08 $ 13.07
Operating ---------- ---------- ---------- ----------
Performance: Investment income--net .32 .01 .38 .01
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .09 (.01) .09 --
---------- ---------- ---------- ----------
Total from investment operations .41 -- .47 .01
---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.20) -- (.22) --
Realized gain on investments--net (.30) -- (.30) --
---------- ---------- ---------- ----------
Total dividends and distributions (.50) -- (.52) --
---------- ---------- ---------- ----------
Net asset value, end of period $ 12.82 $ 12.91 $ 13.03 $ 13.08
========== ========== ========== ==========
Total Based on net asset value per share 3.48%+++ .00%+++ 3.87%+++ .08%+++
Investment ========== ========== ========== ==========
Return:**
<PAGE>
Ratios to Expenses, excluding account maintenance and
Average distribution fees .93%* 1.44%* .89%* 1.44%*
Net Assets: ========== ========== ========== ==========
Expenses 1.93%* 2.44%* 1.14%* 1.69%*
========== ========== ========== ==========
Investment income--net 5.34%* 3.71%* 6.07%* 4.46%*
========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 49,771 $ 7,347 $ 170,679 $ 4,968
Data: ========== ========== ========== ==========
Portfolio turnover 18.49% 57.04% 18.49% 57.04%
========== ========== ========== ==========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
+++Aggregate total investment return.
++Commencement of Operations.
++++Based on average shares outstanding during the period.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Allocation Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. These unaudited
financial statements reflect all adjustments which are, in the opinion
of management, necessary to a fair statement of the results for
the interim period presented. All such adjustments are of a normal
recurring nature. The Fund offers four classes of shares under the
Merrill Lynch Select Pricing SM System. Shares of Class A and
Class D are sold with a front-end sales charge. Shares of Class B
and Class C may be subject to a contingent deferred sales charge.
All classes of shares have identical voting, dividend, liquidation and
other rights and the same terms and conditions, except that
Class B, Class C and Class D Shares bear certain expenses related
to the account maintenance of such shares, and Class B and Class C
Shares also bear certain expenses related to the distribution of
such shares. Each class has exclusive voting rights with respect
to matters relating to its account maintenance and distribution
expenditures. The following is a summary of significant accounting
policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Portfolio securities which are traded on
stock exchanges are valued at the last sale price on the exchange on
which such securities are traded, as of the close of business on the
day the securities are being valued or, lacking any sales, at the last
available bid price. Securities traded in the over-the-counter market
are valued at the last available bid price prior to the time of valua-
tion. In cases where securities are traded on more than one exchange,
the securities are valued on the exchange designated by or under
the authority of the Board of Directors as the primary market.
Securities which are traded both in the over-the-counter market and
on a stock exchange are valued according to the broadest and most
representative market. Options written are valued at the last sale
price in the case of exchange-traded options or, in the case of
options traded in the over-the-counter market, the last asked price.
Options purchased are valued at the last sale price in the case of
exchange-traded options or, in the case of options traded in the
over-the-counter market, the last bid price. Short-term securities
are valued at amortized cost, which approximates market value.
Other investments, including futures contracts and related options,
are stated at market value. Securities and assets for which market
value quotations are not readily available are valued at their fair
value as determined in good faith by or under the direction of the
Fund's Board of Directors.
(b) Repurchase agreements--The Fund invests in US Government
securities pursuant to repurchase agreements with a member bank
of the Federal Reserve System or a primary dealer in US Government
securities. Under such agreements, the bank or primary dealer
agrees to repurchase the security at a mutually agreed upon time
and price. The Fund takes possession of the underlying securities,
marks to market such securities and, if necessary, receives additions
to such securities daily to ensure that the contract is fully
collateralized.
(c) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing
when recognized. Assets and liabilities denominated in foreign
currencies are valued at the exchange rate at the end of the period.
Foreign currency transactions are the result of settling (realized)
or valuing (unrealized) receivables or payables expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates
on investments.
(d) Derivative financial instruments--The Fund may engage in
various portfolio strategies to seek to increase its return by hedging
its portfolio against adverse movements in the equity, debt, and
currency markets. Losses may arise due to changes in the value
of the contract or if the counterparty does not perform under
the contract.
<PAGE>
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on opera-
tions is recorded from the date the Fund enters into such contracts.
Premium or discount is amortized over the life of the contracts.
* Foreign currency options and futures--The Fund may also pur-
chase or sell listed or over-the-counter foreign currency options,
foreign currency futures and related options on foreign currency
futures as a short or long hedge against possible variations in
foreign exchange rates. Such transactions may be effected with
respect to hedges on non-US dollar denominated securities owned
by the Fund, sold by the Fund but not yet delivered, or committed
or anticipated to be purchased by the Fund.
* Options--The Fund is authorized to purchase and write call and
put options. When the Fund writes an option, an amount equal to
the premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current value of the option written.
When a security is sold through an exercise of an option, the related
premium received (or paid) is deducted from (or added to) the
basis of the security sold. When an option expires (or the Fund
enters into a closing transaction), the Fund realizes a gain or loss on
the option to the extent of the premiums received or paid (or gain
or loss to the extent the cost of the closing transaction exceeds the
premium paid or received).
Written and purchased options are non-income producing
investments.
* Financial futures contracts--The Fund may purchase or sell
stock index futures contracts and options on such futures contracts.
Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which
the transaction is effected. Pursuant to the contract, the Fund
agrees to receive from or pay to the broker an amount of cash equal
to the daily fluctuation in value of the contract. Such receipts or
payments are known as variation margin and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the
Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value
at the time it was closed.
NOTES TO FINANCIAL STATEMENTS (continued)
<PAGE>
(e) Income taxes--It is the Fund's policy to comply with the require-
ments of the Internal Revenue Code applicable to regulated invest-
ment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no Federal income tax provi-
sion is required. Under the applicable foreign tax law, a withholding
tax may be imposed on interest, dividends, and capital gains at
various rates.
(f) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Dividend income is recorded on the ex-dividend
dates except that if the ex-dividend date has passed, certain divi-
dends from foreign securities are recorded as soon as the Fund is
informed of the ex-dividend date. Interest income (including
amortization of discount) is recognized on the accrual basis.
Realized gains and losses on security transactions are determined
on the identified cost basis.
(g) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(h) Dividends and distributions--Dividends and distributions paid
by the Fund are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM"). The general
partner of MLAM is Princeton Services, Inc. ("PSI"), an indirect
wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."),
which is the limited partner. The Fund has also entered into a
Distribution Agreement and Distribution Plans with Merrill Lynch
Funds Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
<PAGE>
MLAM is responsible for the management of the Fund's portfolio
and provides the necessary personnel, facilities, equipment and
certain other services necessary to the operations of the Fund. For
such services, the Fund pays a monthly fee of 0.75%, on an annual
basis, of the average daily value of the Fund's net assets. MLAM has
agreed to waive a portion of its fee payable by the Fund so that such
fee is reduced for average daily net assets of the Fund, in excess of
$2.5 billion from the annual rate of 0.75% to 0.70%, and further
reduced from 0.70% to 0.65% for average daily net assets in excess of
$5 billion. MLAM has entered into a sub-advisory agreement with
Merrill Lynch Asset Management U.K., Ltd. ("MLAM U.K."), an
affiliate of MLAM, pursuant to which MLAM pays MLAM U.K. a fee
computed at the rate of 0.10% of the average daily net assets of the
Fund for providing investment advisory services to MLAM with
respect to the Fund. For the six months ended April 30, 1995, MLAM
paid MLAM U.K. a fee of $3,902,030 pursuant to such agreement.
Certain of the states in which the shares of the Fund are qualified
for sale impose limitations on the expenses of the Fund. The most
restrictive annual expense limitation requires that the Investment
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed 2.5% of the Fund's
first $30 million of average daily net assets, 2.0% of the next $70
million of average daily net assets, and 1.5% of the average daily net
assets in excess thereof. MLAM's obligation to reimburse the Fund
is limited to the amount of the management fee. No fee payment
will be made to MLAM during any fiscal year which will cause such
expenses to exceed the most restrictive expense limitation at the
time of such payment.
Pursuant to the distribution plans ("the Distribution Plans")
adopted by the Fund in accordance with Rule 12b-1 under the
Investment Company Act of 1940, the Fund pays the Distributor
ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares as follows:
<PAGE>
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services
to Class B, Class C and Class D shareholders. The ongoing distribu-
tion fee compensates the Distributor and MLPF&S for providing
shareholder and distribution-related services to Class B and
Class C shareholders.
For the six months ended April 30, 1995, MLFD earned under-
writing discounts, and MLPF&S earned dealer concessions on sales
of the Fund's Class A and Class D Shares as follows:
MLFD MLPF&S
Class A $26,001 $457,302
Class D $42,057 $715,431
For the six months ended April 30, 1995, MLPF&S received contin-
gent deferred sales charges of $7,811,791 and $6,328 relating to
transactions in Class B and Class C Shares, respectively.
In addition, MLPF&S received $56,580 in commissions on the
execution of portfolio security transactions for the Fund for the six
months ended April 30, 1995.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-owned
subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLAM, PSI, MLPF&S, MLFDS, MLFD and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1995 were $1,379,348,855 and
$1,706,839,326, respectively.
<PAGE>
Net realized and unrealized gains (losses) as of April 30, 1995 were
as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 75,986,961 $201,619,012
Short-term investments (6,279,708) (1,819,448)
Financial futures contracts (3,024,220) (3,592,000)
Forward foreign exchange contracts (151,350,521) (23,141,241)
Foreign currency transactions 8,491,142 2,791,014
------------ ------------
Total $(76,176,346) $175,857,337
============ ============
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $199,799,564, of which $634,088,023 related
to appreciated securities and $434,288,459 related to depreciated
securities. At April 30, 1995, the aggregate cost of investments for
Federal income tax purposes was $7,543,929,849.
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions
was $69,600,194 and $2,862,952,855 for the six months ended April
30, 1995 and the year ended October 31, 1994, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Six Months Dollar
Ended April 30, 1995 Shares Amount
Shares sold 15,128,464 $ 189,573,309
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,903,469 47,778,466
-------------- --------------
Total issued 19,031,933 237,351,775
Shares redeemed (15,578,747) (195,016,077)
-------------- --------------
Net increase 3,453,186 $ 42,335,698
============== ==============
<PAGE>
Class A Shares for the Year Ended Dollar
October 31, 1994 Shares Amount
Shares sold 51,696,255 $ 691,831,423
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,969,366 52,332,829
-------------- --------------
Total issued 55,665,621 744,164,252
Shares redeemed (19,692,065) (262,792,460)
-------------- --------------
Net increase 35,973,556 $ 481,371,792
============== ==============
Class B Shares for the Six Months Dollar
Ended April 30, 1995 Shares Amount
Shares sold 37,443,964 $ 464,514,044
Shares issued to shareholders in
reinvestment of dividends and
distributions 16,460,012 199,659,949
-------------- --------------
Total issued 53,903,976 664,173,993
Automatic conversion of shares (344,158) (4,202,171)
Shares redeemed (67,278,580) (835,470,186)
-------------- --------------
Net decrease (13,718,762) $ (175,498,364)
============== ==============
<PAGE>
Class B Shares for the Year Ended Dollar
October 31, 1994 Shares Amount
Shares sold 225,442,147 $2,984,209,294
Shares issued to shareholders in
reinvestment of dividends and
distributions 16,263,879 212,326,903
-------------- --------------
Total issued 241,706,026 3,196,536,197
Shares redeemed (62,873,994) (827,228,356)
-------------- --------------
Net increase 178,832,032 $2,369,307,841
============== ==============
Class C Shares for the Six Months Dollar
Ended April 30, 1995 Shares Amount
Shares sold 3,880,128 $ 47,943,387
Shares issued to shareholders in
reinvestment of dividends and
distributions 51,633 623,730
-------------- --------------
Total issued 3,931,761 48,567,117
Shares redeemed (617,898) (7,628,359)
-------------- --------------
Net increase 3,313,863 $ 40,938,758
============== ==============
Class C Shares for the Period Dollar
October 21, 1994++ to October 31, 1994 Shares Amount
Shares sold 569,603 $ 7,333,052
Shares redeemed (586) (7,533)
-------------- --------------
Net increase 569,017 $ 7,325,519
============== ==============
[FN]
++Commencement of Operations.
<PAGE>
Class D Shares for the Six Months Dollar
Ended April 30, 1995 Shares Amount
Shares sold 13,378,535 $ 170,146,533
Automatic conversion of shares 340,257 4,202,171
Shares issued to shareholders in
reinvestment of dividends and
distributions 270,399 3,309,688
-------------- --------------
Total issued 13,989,191 177,658,392
Shares redeemed (1,268,152) (15,834,290)
-------------- --------------
Net increase 12,721,039 $ 161,824,102
============== ==============
Class D Shares for the Period Dollar
October 21, 1994++ to October 31, 1994 Shares Amount
Shares sold 385,289 $ 5,017,907
Shares redeemed (5,386) (70,204)
-------------- --------------
Net increase 379,903 $ 4,947,703
============== ==============
[FN]
++Commencement of Operations.
5. Commitments:
At April 30, 1995 the Fund had entered into forward foreign
exchange contracts under which it had agreed to purchase and sell
various foreign currency with an approximate value of $16,900,000
and $32,300,000, respectively.
PORTFOLIO CHANGES
For the Quarter Ended April 30, 1995
<PAGE>
Additions
AM General Corporation,
12.875% due 5/01/2002
Asia Pacific Resources International
Holdings Ltd.
Asia Pulp & Paper Company, Ltd. (ADR)
Bayerische Vereinsbank AG (Rights)
Bundesrepublic Deutscheland,
7.50% due 11/11/2004
Charter One Financial, Inc.
Cox Communication, Inc.
Government of Spain, 10% due 2/28/2005
Great Bay Power Co.
HIH Capital Ltd., 7.50% due 9/25/2006
Hanson PLC (Ordinary)
MacMillan Bloedel Limited, Convertible
Bonds, 5% due 5/01/2007
Mitsui Marine & Fire Insurance Co., Ltd.,
0.70% due 3/31/2003
National Power PLC, Convertible Bonds,
6.25% due 9/23/2008
Nichido Fire & Marine Insurance Co., Ltd.,
1% due 3/31/2003
Petroleos Mexicanos, S.A.,
8.625% due 12/01/2023
Repsol S.A. (ADR)
Republic of Argentina:
Floating Rate Bond, 7.312% due 3/31/2005
Par Bonds, 5% due 3/31/2023
Rogers Cablesystem of America,
9.65% due 1/15/2014
Siemens AG
Societe Generale, Convertible Bonds (New),
3.50% due 1/01/2000
Stadshypotek AB
Telecom Argentina S.A., 8.375% due 10/18/2000
Telefonica de Argentina S.A., 8.375% due
10/01/2000
Times Mirror Company (Convertible, Series B)
Toledo Edison Co., 7.85% due 3/31/2003
Transamerica Refining Corp. (Warrants)
Transamerica Refining Corp.,
18.29% due 2/15/1998
UAL Corporation, Convertible Bonds,
6.375% due 2/01/2025
Volvo AB
Waste Management International
PLC (ADR)
Waterford Wedgwood Units (Ordinary)
<PAGE>
Deletions
ALZA Corp.
American Home Products Corp.
American Medical International, Inc.,
5% due 3/18/1996
AmSouth Bancorporation
Baloise Holding Insurance (Registered)
Boise Cascade Corp., 9.45% due 11/01/2009
Bundesrepublic Deutscheland,
6.75% due 11/11/2004
CRH Capital Corp., Convertible Bonds:
6.50% due 4/30/2003
5.75% due 4/30/2005
Canadian Government Bonds,
8.50% due 3/01/2000
Charter One Financial, Inc.
Chubb Corp.
Ciba-Geigy Corp. (Warrants),
5.50% due 10/28/1998
Columbia Gas System, Inc.:
9% due 8/01/1994
10.15% due 11/01/2013
Commercial Union Assurance Co. PLC
Compagnie Financiere de Paribas
Compagnie Generale des Eaux
Congoleum Corp., 9% due 2/01/2001
Credit National, Convertible Bonds,
3.25% due 1/01/2001
Delta Airlines, Inc.:
Series A2, 9.20% due 9/23/2014
10.06% due 1/02/2016
Domtar, Inc., 10% due 4/15/2011
EUA Power Corp.:
Series B, 17.50% due 5/15/1993
Series C, 17.50% due 5/15/1993
GAN S.A. (Registered)
Government of Spain, 10.30% due 6/15/2002
Hokkaido Coca-Cola Bottling Co., Ltd.,
Convertible Bonds, 0.90% due 6/30/1995
Jostens Inc.
<PAGE>
Kaufman & Broad Home Corporation,
9.375% due 5/01/2003
Koninklijke PTT Nederland N.V.
Lilly (Eli) & Co.
Long Island Lighting Co., 7.90%
due 7/15/2008
Manor Care, Inc.
Paracelsus Healthcare Corp.,
9.875% due 10/15/2003
Regency Health Services, Inc.,
Convertible Bonds, 6.50% due 7/15/2003
Republic of Argentina:
6.50% due 3/31/2005
Par Bonds, 4.25% due 3/31/2023
RMC Capital Ltd., Convertible Bonds,
8.75% due 5/31/2006
Sequa Corp., 9.625% due 10/15/1999
Skandia Forsakring AB Free
Societe Generale (New)
Stone Consolidated Corp.,
10.25% due 12/15/2000
Stone Container Corp.
Telefonica Nacional de Espana S.A.
Telefonica Nacional de Espana S.A. (ADR)
Tenneco Inc.
Thyssen AG
Treuhandanstalt, 6.875% due 6/11/2003
Trustco Bankcorp. NY
UAL Corp. (6.25% Convertible)
Waban, Inc., 11% due 5/15/2004
Webb (Del E.) Corp., 9.75% due 3/01/2003
<PAGE>
PORTFOLIO INFORMATION
Worldwide
Investments
As of 4/30/95
Percent Breakdown of
Stocks & Fixed-Income Percent of
Securities by Country Net Assets
United States* 42.3%
Germany 12.2
France 5.5
Argentina 5.3
Japan 5.0
Canada 4.2
Spain 4.1
Mexico* 3.7
United Kingdom 3.6
Netherlands 2.5
Brazil 1.6
Sweden 1.1
Switzerland 0.9
Italy 0.8
Australia 0.8
Finland 0.6
Indonesia 0.5
Portugal 0.3
Norway 0.2
Hong Kong 0.2
Ireland 0.1
Austria 0.1
Korea 0.1
New Zealand 0.0
South Korea --
-----
Total 95.7%
=====
<PAGE>
[FN]
*Includes investments in short-term securities.
Ten Largest Industries Percent of
(Equity Investments) Net Assets
Banking 8.9%
Insurance 3.8
Utilities--Electric & Gas 2.7
Energy & Petroleum 1.7
Retail Stores 1.4
Pharmaceuticals/Biotechnology 0.9
Saving Banks 0.9
Electrical Equipment 0.9
Paper & Forest Products 0.9
Real Estate Investment Trusts 0.9
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
Republic New York Corp. 0.9%
Chemical Banking Corp. 0.8
ABN Amro Holdings N.V. 0.6
Internationale Nederlanden
Groep N.V. 0.5
Loews Corp. 0.5
KeyCorp 0.5
Bristol-Myers Squibb Co. 0.5
First of America Bank 0.5
Entergy Corp. 0.5
Philips Electronics N.V. 0.5
