MERRILL LYNCH
SHORT-TERM
GLOBAL INCOME
FUND, INC.
FUND LOGO
Quarterly Report
March 31, 1996
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original
cost. Statements and other information herein are as dated and are
subject to change.
<PAGE>
Merrill Lynch
Short-Term Global
Income Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH SHORT-TERM GLOBAL INCOME FUND, INC.
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
Joseph T. Monagle, Jr., Senior Vice President
Alex V. Bouzakis, Vice President
Donald C. Burke, Vice President
Edward F. Gobora, Vice President
David B. Walter, Vice President
Stephen Yardley, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, New York 11245
<PAGE>
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
The first quarter of 1996 was marked by the significant sell-off in
the US bond market. Although affected by this sell-off, many global
bond markets outperformed the US bond market, with each trading on
its own technical and fundamental merits. In Europe, bond markets
were primarily affected by central bank easings of interest rates as
economies remained sluggish and unemployment continued at high
levels. This contrasts with much more positive economic releases in
the United States and a more optimistic view for Japan. Short-term
money market rates were generally lower at the end of the March
quarter with New Zealand and Japan being the primary exceptions. For
the most part, yield curves steepened. However, Italy and New
Zealand still have inverted yield curves. We maintained
underweighted duration exposures in the dollar bloc sector of the
Fund's portfolio and as a result were largely not affected by these
events.
Economic and Political
Environment
As 1996 began, both currency and bond markets were focusing on the
US budget situation. In January, bond investors remained confident
that a balanced budget agreement could be achieved. Economic data
from the United States indicating lower inflation, combined with a
slowdown in the economy, prompted a 25 basis point (0.25%) reduction
in interest rates by the US Federal Reserve Board. This brought the
Federal Funds rate to 5.25%. This move was constructive in general
for international bond markets as central banks in Germany, Sweden,
Belgium, Finland, Denmark, Spain, the United Kingdom, France and
Canada eased monetary policy by reducing either short-term interest
rates or official rates. Of special note were the interest rate
reductions by European central banks as European Monetary Union
criteria became the central focus and economic growth patterns
remained benign.
<PAGE>
The January 20, 1996 meeting of the Group of Seven industrialized
nations allowed participants to concur that current interest rates
were appropriate considering the economic environment. They agreed
that a stronger US dollar was in the best interest of their
respective economies and European unity would not be appropriate
without Germany's inclusion in the initial stages. During January,
the US dollar broke through significant levels to 107 US$/yen and
1.4650 in US$/DM. These aggressive moves in the US dollar were
attributed to lower interest rates across Europe, a weaker
Deutschemark versus most European currencies and weak economies in
both Germany and Japan.
As we entered February, US payroll releases for January indicated
evidence of a slowing economy as the number decreased by 201,000
after a revised increase in December of 161,000. The Government
shutdown and environmental factors partly distorted the data. US
Federal Reserve Board Chairman Alan Greenspan forecast in his semi-
annual economic report to Congress (the Humphrey-Hawkins testimony)
that 1996 would be a good year for growth and low inflation. He
stated economic weakness was temporary and another easing would only
occur if the economy remained weak and inflationary pressures
diminished. Aggressive selling of US bonds followed Greenspan's
initial report, since the possibility of no further Federal Reserve
Board monetary easing entered the marketplace. In addition, the rise
in the prices of gold and other commodities provoked fears of higher
inflation.
Throughout February, the Bank of Japan continually intervened in the
foreign exchange market to support the US$/yen ratio. The Ministry
of Finance announced a new agreement with Singapore and Hong Kong
monetary authorities to stabilize the US$/yen ratio through
intervention. In an attempt to promote overseas investment by
Japanese investors, Japan's Ministry of Finance announced plans to
ease restrictions on foreign investments and currency transactions.
The most notable deregulatory step was the abolishment of pension
fund management by trust banks. The Ministry of Finance stated the
deregulatory measures will result in a "correction of the yen's
strength versus the dollar." During February, actual economic
reports supported a weaker yen as Japan's trade surplus decreased
substantially from a year ago.
In Italy, Antonio Maccanico was named the Prime Minister Designate
after Prime Minister Dini resigned in December. Although Maccanico
failed in his task of forming a new government and stepped down with
Dini designated as caretaker, the lira continued to trade higher
versus the Deutschemark and the Italian bond market remained firm.
In the United Kingdom, Prime Minister John Major was put under
scrutiny as Parliament debated the issue of British arms sales to
Iraq several years ago. In winning the debate by a single vote,
Major avoided the necessity of a vote of confidence; nevertheless,
support for the government has faltered.
<PAGE>
In general, central banks in Europe continued to move interest rates
lower. Throughout the month, France, Belgium, the Netherlands,
Denmark, Sweden, Finland and Germany reduced their key interest
rates or short-term interest rates. With European currencies
appreciating versus the Deutschemark, European central banks took
every opportunity to bring short-term interest rates lower.
The month of March intensified the divergence between a declining US
market and improving short-term European markets. The US February
non-farm payroll report showed an unexpected increase of 705,000. As
a result, the bond market experienced a sharp decline as
expectations of a Federal Reserve Board easing at the next Federal
Open Market Committee meeting diminished. At the same time, European
countries reduced key short-term interest rates as interest rate
convergence took hold. Above-target money supply growth may have
lessened the chance of further easing in Germany, but slower
economic data still point to lower short-term interest rates. In
Spain, the Popular Party led by Jose Maria Aznar emerged ahead of
Prime Minister Felipe Gonzalez's Socialists in Spain's general
elections. As it appeared that a government was to be formed, the
Spanish currency remained strong and allowed the Bank of Spain to
reduce short-term interest rates by 1%. We remain positive on the
Spanish market as inflation is expected to continue to decline.
Returning to the dollar bloc, Canada's fiscal position continues to
improve and the Bank of Canada remains committed to easing monetary
policy on the back of any currency strength. The expected delay of a
Quebec referendum until late 1998 also supported the Canadian
dollar. We reduced our position in Canada since Canadian short-term
interest rates traded below US interest rates. In addition, the
Australian and New Zealand markets have been performing well,
reflecting favorable political developments in Australia and hawkish
comments on monetary policy in New Zealand. The opposition
Liberal/National Coalition, led by John Howard, won an unexpected
landslide victory in Australia's 1996 Federal election, replacing
Paul Keating's Labor Party. In his monetary policy statement,
Reserve Bank of New Zealand Governor Donald Brash seemed committed
to maintaining firm monetary conditions.
At the same time, the major sources of concern for the currency
markets throughout March were the military maneuvers in China, prior
to the first public elections in Taiwan, and fears of yen
repatriation by Japanese corporations before the fiscal year-end.
The US dollar ignored the potential negatives and strengthened in
response to Japanese investors diversifying into higher-yielding
markets and the favorable interest rate differentials as compared to
Germany and Japan.
<PAGE>
Market Outlook
Looking ahead, we expect the US dollar to be positively affected by
the decline of the Japanese trade surplus, Japanese investors
diversifying into foreign assets, and improving interest rate
differentials. In addition, the probability of a weaker Deutschemark
as a result of lower growth in Germany will also provide US dollar
support.
Slow growth and low inflation in industrialized countries could
allow central banks to reduce short-term interest rates even
further, allowing global bond yields to trend lower in Europe.
However, we believe evidence of economic growth has emerged in the
United States and could translate into improved economic growth
patterns with our major trading partners. Therefore, we may see a
higher interest rate trend as 1996 unfolds.
European economic releases will be monitored to estimate the extent,
if any, of future Bundesbank easings. The core European markets are
likely to continue to benefit from expectations of a single currency
within Europe.
We expect to maintain our positions in higher-yielding global
markets (Spain, Italy, Australia and New Zealand). In order to
partially offset the cost to the Fund of hedging non-US dollar-
denominated bond positions, we will actively manage our hedging
strategy. Cross-currency hedges, as opposed to more expensive
currency and option strategies, will be implemented when appropriate
in order to seek to enhance our currency management profile.
In Conclusion
We thank you for your continued investment in Merrill Lynch Short-
Term Global Income Fund, Inc., and we look forward to reviewing our
outlook with you again in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Alex V. Bouzakis)
Alex V. Bouzakis
Vice President and
Senior Portfolio Manager
<PAGE>
(Edward F. Gobora)
Edward F. Gobora
Vice President and Portfolio Manager
(David B. Walter)
David B. Walter
Vice President and Portfolio Manager
(Stephen Yardley)
Stephen Yardley
Vice President and Portfolio Manager
April 30, 1996
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
<PAGE>
* Class A Shares incur a maximum initial sales charge (front-end
load) of 4% and bear no ongoing distribution or account maintenance
fees. Class A Shares are available only to eligible investors, as
detailed in the Fund's prospectus. If you were a Class A shareholder
prior to October 21, 1994, your Class A Shares were redesignated to
Class D Shares on October 21, 1994, which, in the case of certain
eligible investors, were simultaneously exchanged for Class A
Shares.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.50% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after 10 years.
* Class C Shares are subject to a distribution fee of 0.55% 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 4% and an
account maintenance fee of 0.25% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/96 +7.03% +2.75%
Inception (10/21/94) through 3/31/96 +4.67 +1.75
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/96 +6.07% +2.07%
Five Years Ended 3/31/96 +2.09 +2.09
Inception (8/3/90) through 3/31/96 +2.85 +2.85
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/96 +5.89% +4.89%
Inception (10/21/94) through 3/31/96 +2.09 +2.09
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 3/31/96 +6.63% +2.37%
Five Years Ended 3/31/96 +2.61 +1.78
Inception (8/3/90) through 3/31/96 +3.40 +2.66
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
<PAGE>
PERFORMANCE DATA (continued)
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $8.11 $7.90 -- $0.103 -1.33%
1995 7.90 7.91 -- 0.537 +7.14
1/1/96--3/31/96 7.91 7.86 -- 0.122 +1.04
------
Total $0.762
Cumulative total return as of 3/31/96: +6.81%**
<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 payable date, and do not
include sales charge; results would be lower if sales charge was
included.
</TABLE>
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
8/3/90--12/31/90 $10.00 $9.93 -- $0.404 +3.40%
1991 9.93 9.68 -- 0.885 +6.63
1992 9.68 8.69 -- 0.687 -3.39
1993 8.69 8.63 -- 0.581 +6.15
1994 8.63 7.89 -- 0.463 -3.30
1995 7.89 7.90 -- 0.474 +6.31
1/1/96--3/31/96 7.90 7.85 -- 0.108 +0.86
------
Total $3.602
Cumulative total return as of 3/31/96: +17.25%**
<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 payable date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<PAGE>
<TABLE>
Performance
Summary--
Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $8.11 $7.89 -- $0.079 -1.74%
1995 7.89 7.72 -- 0.435 +3.48
1/1/96--3/31/96 7.72 7.71 -- 0.103 +1.34
------
Total $0.617
Cumulative total return as of 3/31/96: +3.03%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<TABLE>
Performance
Summary--
Class D Shares***
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
8/3/90--12/31/90 $10.00 $9.93 -- $0.436 +3.73%
1991 9.93 9.68 -- 0.941 +7.23
1992 9.68 8.70 -- 0.735 -2.79
1993 8.70 8.64 -- 0.625 +6.69
1994 8.64 7.89 -- 0.506 -2.91
1995 7.89 7.90 -- 0.517 +6.87
1/1/96--3/31/96 7.90 7.85 -- 0.117 +0.98
------
Total $3.877
Cumulative total return as of 3/31/96: +20.87%**
<PAGE>
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable date, and do not
include sales charge; results would be lower if sales charge was
included.
***As a result of the implementation of the Merrill Lynch Select
Pricing SM System, Class A Shares of the Fund outstanding prior to
October 21, 1994 wereredesignated to Class D Shares.
</TABLE>
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
3/31/96 12/31/95 3/31/95 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares* $7.86 $7.91 $7.86 0.00% -0.63%
Class B Shares* 7.85 7.90 7.86 -0.13 -0.63
Class C Shares* 7.71 7.72 7.71 0.00 -0.13
Class D Shares* 7.85 7.90 7.86 -0.13 -0.63
Class A Shares--Total Return* +7.03(1) +1.04(2)
Class B Shares--Total Return* +6.07(3) +0.86(4)
Class C Shares--Total Return* +5.89(5) +1.34(6)
Class D Shares--Total Return* +6.63(7) +0.98(8)
Class A Shares--Standardized 30-day Yield 5.13%
Class B Shares--Standardized 30-day Yield 4.61%
Class C Shares--Standardized 30-day Yield 4.42%
Class D Shares--Standardized 30-day Yield 4.91%
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
(1)Percent change includes reinvestment of $0.539 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.122 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.477 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.108 per share ordinary
income dividends.
<PAGE>
(5)Percent change includes reinvestment of $0.444 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.103 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.519 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.117 per share ordinary
income dividends.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Maturity Interest Percent of
COUNTRIES Face Amount Date Issue Rate++ Value Net Assets
<S> <S> <C> <C> <S> <C> <C> <C>
Australia A$ 24,400,000 8/08/96 Australian Treasury Bill (3) 7.53 % $ 18,577,173 5.26%
19,100,000 5/14/97 Queensland Treasury Corp. (3) 8.00 14,922,940 4.22
37,300,000 1/15/97 Western Australia Treasury
Corporation (3) 10.00 29,626,550 8.39
Total Investments in Australia
(Cost--$61,252,866) 63,126,663 17.87
Ireland Iep 12,230,000 7/30/96 Irish Gilt (1) 9.00 19,504,128 5.52
Total Investments in Ireland
(Cost--$20,007,622) 19,504,128 5.52
Italy Lit 25,000,000,000 10/01/96 Buoni Poliennali del Tesoro
(Italian Government Bonds)(1) 9.00 15,910,179 4.50
Total Investments in Italy
(Cost--$15,152,421) 15,910,179 4.50
New Zealand NZ$ 33,300,000 5/08/96 New Zealand Treasury Bill (1) 8.77 22,504,303 6.37
40,150,000 6/12/96 New Zealand Treasury Bill (1) 8.74 26,864,955 7.60
22,500,000 6/19/96 New Zealand Treasury Bill (1) 8.73 15,056,938 4.26
Total Investments in New Zealand
(Cost--$63,933,239) 64,426,196 18.23
<PAGE>
Spain Pta 2,000,000,000 2/28/97 Bonos del Estado (Spanish
Government Bonds)(1) 9.00 16,194,776 4.58
Total Investments in Spain
(Cost--$16,014,575) 16,194,776 4.58
Sweden Skr 91,000,000 4/17/96 Swedish Treasury Bill (1) 7.00 13,568,480 3.84
Total Investments in Sweden
(Cost--$13,054,060) 13,568,480 3.84
United Pound 11,800,000 12/30/96 General Electric Capital Corp. (2) 8.25 18,237,270 5.16
Kingdom Sterling
Total Investments in the United Kingdom
(Cost--$19,134,699) 18,237,270 5.16
United US$ 18,000,000 4/04/96 CS First Boston Inc., Repurchase
States Agreement* purchased on 3/22/96 (2) 5.27 18,000,000 5.09
1,500,000 5/28/96 Caisse des Depots et Consignations (2) 7.50 1,503,990 0.43
17,000,000 4/01/96 Chemical Bank, Repurchase Agreement*
purchased on 3/29/96 (2) 5.35 17,000,000 4.81
18,000,000 4/02/96 Deutsche Bank Securities, Repurchase
Agreement* purchased on 3/26/96 (2) 5.30 18,000,000 5.09
17,000,000 4/01/96 Morgan (J.P.) & Co., Inc., Repurchase
Agreement* purchased on 3/29/96 (2) 5.40 17,000,000 4.81
17,000,000 4/01/96 Morgan Stanley Group, Inc., Repurchase
Agreement* purchased on 3/29/96 (2) 5.35 17,000,000 4.81
1,900,000 7/15/96 Osterreiche Kontroll Bank (2) 8.25 1,912,939 0.54
16,800,025 4/01/96 Schweizerischer Bankverein SBC
(Swiss Bank), Repurchase Agreement*
purchased on 3/29/96 (2) 5.25 16,800,025 4.76
36,400,000 5/15/96 US Treasury Note (1) 7.375 36,479,716 10.32
Total Investments in the United States
(Cost--$143,884,184) 143,696,670 40.66
Total Investments (Cost--$352,433,666) 354,664,362 100.36
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Par Expiration Strike Percent of
Value Date Issue Price Value Net Assets
<S> <S> <C> <S> <S> <S> <C> <C>
Currency US$ 4,554,000 April 1996 British Pound Pound Sterling 1.5325 $ (8,653) 0.00%
Call
Options
Written
Total Options Written
(Premiums Received--$4,554) (8,653) 0.00
Total Investments, Net of Options Written (Cost--$352,429,112) 354,655,709 100.36
Unrealized Depreciation on Forward Foreign Exchange Contracts++++ (2,786,493) (0.79)
Other Assets Less Liabilities 1,517,261 0.43
------------ -------
Net Assets $353,386,477 100.00%
============ =======
Net Asset Value: Class A--Based on net assets of $27,342 and
3,479 shares outstanding $ 7.86
============
Class B--Based on net assets of $331,310,524 and
42,194,009 shares outstanding $ 7.85
============
Class C--Based on net assets of $11,342 and
1,471 shares outstanding $ 7.71
============
Class D--Based on net assets of $22,037,269 and
2,805,516 shares outstanding $ 7.85
============
<FN>
Corresponding industry groups for securities (percent of net
assets):
(1) Sovereign Government Obligations--46.99%
(2) Financial Services--35.50%
(3) Sovereign/Regional Government Obligations--Agency--17.87%
*Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
++Certain Commercial Paper, US Treasury and Foreign Treasury
Obligations are traded on a discount basis; the interest rates shown
represent the yield-to-maturity at the time of purchase by the Fund.
Other securities bear interest at the rates shown, payable at fixed
dates or upon maturity. Interest rates on floating rate securities
are adjusted periodically based on appropriate indexes; the interest
rates shown are those in effect at March 31, 1996.
<PAGE>
++++Forward Foreign Exchange Contracts as of March 31, 1996 were as follows:
Unrealized
Expiration Appreciation
Date (Depreciation)
Foreign Currency Purchased
A$ 13,158,598 May 1996 $ 138,328
C$ 88,498,088 March 1996 589,166
DM 67,667,922 April 1996 (195,817)
Pound Sterling 2,974,526 April 1996 74
NZ$ 15,925,075 May 1996 18,634
Pta 567,558,310 April 1996 32,151
Pta 565,662,675 May 1996 28,470
YEN 485,025,510 May 1996 (18,368)
Total (US$ Commitment--$149,578,012) $ 592,638
============
Foreign Currency Sold
A$ 94,869,158 May 1996 $(2,001,307)
C$ 88,498,088 March 1996 (883,650)
DM 62,932,517 April 1996 135,702
DM 20,292,525 June 1996 (1,080)
Iep 11,521,867 April 1996 6,798
Pound Sterling 12,713,391 April 1996 (37,532)
Lit 24,616,652,811 April 1996 (337,448)
NZ$ 94,919,334 May 1996 28,398
Pta 2,086,502,351 May 1996 (88,382)
Skr 88,920,978 May 1996 (205,308)
YEN 485,025,511 May 1996 4,678
Total (US$ Commitment--$344,301,164) $(3,379,131)
-----------
Total Unrealized Depreciation--Net on
Forward Foreign Exchange Contracts $(2,786,493)
===========
</TABLE>
