MERRILL LYNCH
SHORT-TERM
GLOBAL INCOME
FUND, INC.
FUND LOGO
Quarterly Report
March 31, 1997
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original
cost.Statements and other information herein are as dated and are
subject to change.
<PAGE>
Merrill Lynch
Short-Term Global
Income Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
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
<PAGE>
Custodian
The Chase Manhattan Bank
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, New York 11245
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
Portfolio Review
During the quarter ended March 31, 1997, global fixed-income markets
either declined or remained stable as different growth criteria and
central bank bias affected individual markets in various ways. In
the dollar bloc countries, fixed-income markets remained under
pressure with the US Federal Reserve Board finally increasing
interest rates toward the end of the March quarter. Prior to the
increase in interest rates, Canadian, Australian and US markets were
negatively affected as fundamentals discounted the Federal Reserve
Board's move. With economic and inflationary growth measures
appearing to be rising in the United States, investors once again
are discounting additional interest rate increases. This scenario,
while negative for bonds, remains very positive for the US dollar,
and the Fund continued to be largely hedged back in US dollars.
European bond markets were also negatively affected by the dollar
bloc fundamentals. Though rallying in January as central banks
continued with an easing bias, the late sell off in February and
March allowed most markets to be relatively unchanged for the
quarter ended March 31, 1997. While on the path to European Monetary
Union (EMU), we expect European central banks to continue their bias
toward stable accommodative monetary policies.
During the three months ended March 31, 1997, the Fund remained
focused on short-term money market instruments with currency
exposure hedged back to US dollars to seek to maintain net asset
value stability. In addition, we expanded our exposure to the higher-
yielding dollar bloc countries with approximately 70% of the Fund
allocated to these markets. This positioning positively affected the
Fund with the strong dollar, rising interest rate scenario
experienced during the first three months of the year.
<PAGE>
Market Review
The US dollar remained the currency of choice as we entered 1997.
The strength of the US economy and interest rate differentials in
favor of US fixed-income securities were significant fundamental
factors propelling the US dollar against the majority of global
currencies. In addition, various comments by US government officials
displayed the administration's preference for a stronger dollar. As
we have for the majority of 1996, we remained primarily hedged into
the dollar to offset any currency depreciation of non-dollar assets
in the Fund.
Investors focused on the possibility of emerging evidence of
inflation as economies displayed rising growth patterns, especially
in the dollar bloc countries. In the United States, declines in
unemployment and upward pressure on wage rates kept the bond market
weak for the majority of the month. Favorable comments by Federal
Reserve Board Chairman Alan Greenspan detailing the 0.05%--1.5%
overstating of inflation in the Consumer Price Index allowed for
long-term interest rates in the United States to remain below 7%.
Bond markets in Europe remained firm for the most part, with long-
term interest rates declining as inflation results continued to
surprise to the downside. In Spain, consumer prices rose on an
annualized basis to 2.9% while Sweden displayed an annualized 0.2%.
These types of results allowed for further monetary policy easing by
the central banks. During January 1997, central banks reduced short-
term borrowing rates in France, Portugal, Italy and Spain. However,
in the United Kingdom, strength in domestic demand and above-trend
growth kept retail price inflation above 3%. As a result, Bank of
England Governor Eddie George stressed the importance of preemptive
rate increases and kept short-term interest rates relatively firm.
In the Pacific Basin, the New Zealand dollar declined off
intermediate-term highs as Federal Reserve Governor Brash stated the
exchange rate had risen to undesirable levels. In addition, the
Australian currency was under pressure as the largest trade deficit
in 12 months was reported.
Our fixed-income positions continually emphasized the short ends of
the markets which we invested in. In addition to the United States,
our exposures were in the following relatively high yielding
markets: Italy, New Zealand, Spain, Ireland, and Australia. We also
maintained positions in Canada and the United Kingdom and created a
strong income stream while limiting price volatility.
<PAGE>
February was dominated by continued strength in the US dollar. In
Germany, high unemployment and deteriorating confidence in Germany's
economic performance contributed to the Deutschemark's depreciation.
However, Bundesbank President Tietmeyer stated that he was against
any further rise in the dollar against the Deutschemark and a
decrease in short-term interest rates was unlikely in the near
future. In addition, in Japan Finance Minister Mitsuzuka stated an
excessive weakening of the yen was unlikely as currencies should
reflect economic fundamentals.
Of note, finance ministers and central bank governors of the Group
of Seven Industrialized Nations met to discuss the foreign exchange
and financial markets. Attendants expressed their belief that the
major misalignments in the foreign exchange markets noted in their
April 1995 meeting were corrected. Officials also agreed that
exchange rates should reflect economic fundaments and excess
volatility was undesirable.
Strong employment figures in Australia dispelled hopes for a rate
reduction in the near future. Reserve Bank of Australia Governor Ian
Macfarlane stated that the Royal Bank of Australia is watching for
the effects of the last three interest rate cuts. Lower Australian
bond yields fueled speculation that maturing proceeds from
Australian dollar-denominated Samurai bonds would be reinvested in
other currencies.
In Europe, bond markets in February were relatively stable. The
Labour Party won a key by-election in the United Kingdom bringing
Prime Minister Major's Conservative government to a minority. The
victory gave confidence to the Labour Party ahead of the general
election in May, which resulted in a Labour Party victory. The key
policy on Labour Leader Tony Blair's agenda is the reduction of the
value added tax, among other tax reductions. Sterling came under
pressure ahead of elections, and expectations for a tightening in
monetary policy were on hold.
Discussions in Italy focused on the country's participation in the
EMU. The EMU's statistical office approved Italy's methods of tax
computation, increasing the government's chances of meeting the
deficit/gross domestic product requirement. Various European leaders
commented on Italy's prospects for EMU entry, and the Italian
government reaffirmed its commitment to meeting all the criteria
needed for approval. The Lower House and the Senate approved the
1997 budget which will reduce the public sector deficit by $37.2
billion during the year.
During March, bond markets were adversely affected by the US Federal
Reserve Board Open Market Committee's decision to increase the
Federal Funds rate by 25 basis points (0.25%) to 5.50%. Federal
Reserve Board Chairman Alan Greenspan elected to raise interest
rates preemptively, to contain inflationary pressures and to respond
to a growing economy. He supported the decision by stating that the
US economy was growing near to full capacity and potential
imbalances in the economy could bring about higher price pressures.
In addition, European bonds also traded negatively as economic
growth measures, higher dollar bloc interest rates, and the
potential for a delay in the start of EMU brought sellers into
various markets. However, comments by Germany's Finance Minister
Waigel stating Germany would make every effort to meet necessary EMU
criteria through spending cuts brought some support to European
fixed-income securities.
<PAGE>
The Japanese government announced a package of measures aimed at
boosting liquidity in Japan's land market. Under the deal, the
government will purchase land held as collateral for loans. The
package will make it easier for banks to convert their bad land
loans into cash and help banks resolve the bad loan situation.
As we ended the March quarter, we maintained our short-term higher-
yielding European positions and dollar bloc positions in order to
seek to generate an attractive current income stream, while hedging
the currency exposure to limit net asset value volatility.
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
May 7, 1997
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. However, in the case of certain
eligible investors, the shares 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 approximately 10 years. (There is no initial
sales charge for automatic share conversions.)
* 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. Figures shown in the "Average Annual Total
Return" tables as well as the total returns and cumulative total
returns in the "Performance Summary" tables assume reinvestment of
all dividends and capital gains distributions at net asset value on
the payable date. 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.
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $8.11 $7.90 -- $0.103 -1.33%
1995 7.90 7.91 -- 0.537 +7.14
1996 7.91 7.89 -- 0.500 +6.29
1/1/97--3/31/97 7.89 7.83 -- 0.089 +0.54
------
Total $1.229
<PAGE>
Cumulative total return as of 3/31/97: +12.96%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not include sales charge; results would be lower if
sales charge was included.
</TABLE>
PERFORMANCE DATA (continued)
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
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
1996 7.90 7.81 -- 0.438 +4.52
1/1/97--3/31/97 7.81 7.75 -- 0.076 +0.34
------
Total $4.008
Cumulative total return as of 3/31/97: +21.91%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not reflect deduction of any sales charge; results
would be lower if sales charge was deducted.
</TABLE>
<TABLE>
Performance
Summary--
Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $8.11 $7.89 -- $0.079 -1.74%
1995 7.89 7.72 -- 0.435 +3.48
1996 7.72 7.67 -- 0.422 +4.93
1/1/97--3/31/97 7.67 7.62 -- 0.074 +0.45
------
Total $1.010
<PAGE>
Cumulative total return as of 3/31/97: +7.16%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not reflect deduction of any sales charge; results
would be lower if sales charge was deducted.
</TABLE>
<TABLE>
Performance
Summary--
Class D Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
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
1996 7.90 7.81 -- 0.480 +5.09
1/1/97--3/31/97 7.81 7.76 -- 0.085 +0.60
------
Total $4.325
Cumulative total return as of 3/31/97: +26.54%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not include sales charge; results would be lower if
sales charge was included.
</TABLE>
<PAGE>
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
3/31/97 12/31/96 3/31/96 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares* $7.83 $7.89 $7.86 -0.38% -0.76%
Class B Shares* 7.75 7.81 7.85 -1.27 -0.77
Class C Shares* 7.62 7.67 7.71 -1.17 -0.65
Class D Shares* 7.76 7.81 7.85 -1.15 -0.64
Class A Shares--Total Return* +5.71(1) +0.54(2)
Class B Shares--Total Return* +3.95(3) +0.34(4)
Class C Shares--Total Return* +3.99(5) +0.45(6)
Class D Shares--Total Return* +4.65(7) +0.60(8)
Class A Shares--Standardized 30-day Yield 4.26%
Class B Shares--Standardized 30-day Yield 3.56%
Class C Shares--Standardized 30-day Yield 3.52%
Class D Shares--Standardized 30-day Yield 3.93%
<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 $0.468 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.089 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.405 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.076 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.392 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.074 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.448 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.085 per share ordinary
income dividends.
</TABLE>
PERFORMANCE DATA (concluded)
Average Annual
Total Return
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/97 +5.71% +1.48%
Inception (10/21/94) through 3/31/97 +5.12 +3.38
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/97 +3.95% +0.01%
Five Years Ended 3/31/97 +1.88 +1.88
Inception (8/3/90) through 3/31/97 +3.02 +3.02
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/97 +3.99% +3.00%
Inception (10/21/94) through 3/31/97 +2.87 +2.87
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
<PAGE>
Year Ended 3/31/97 +4.65% +0.46%
Five Years Ended 3/31/97 +2.42 +1.59
Inception (8/3/90) through 3/31/97 +3.60 +2.97
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
Maturity Interest Percent of
COUNTRIES Face Amount Date Issue Rate++ Value Net Assets
<S> <S> <C> <S> <S> <C> <C> <C>
Australia A$ 15,950,000 5/14/97 Queensland Treasury Corp. (3) 8.00 % $ 12,526,515 5.40%
Total Investments in Australia
(Cost--$12,594,760) 12,526,515 5.40
Canada C$ 3,258,000 9/02/97 General Electric Capital Corp. (2) 6.25 2,381,644 1.03
3,500,000 2/01/00 Government of Canada (1) 5.50 2,540,323 1.10
5,235,000 12/19/97 Toyota Motor Credit Corp. (2) 6.25 3,826,101 1.65
Total Investments in Canada
(Cost--$8,976,672) 8,748,068 3.78
Germany DM 9,060,000 7/11/97 Depfa Bank (2) 3.125 5,444,169 2.35
6,990,687 4/10/97 Grand Cayman, Time Deposit (2) 3.062 4,202,397 1.81
4,540,323 4/11/97 Grand Cayman, Time Deposit (2) 3.125 2,729,380 1.18
7,600,000 4/21/97 Grand Cayman, Time Deposit (2) 3.125 4,568,680 1.97
4,957,901 4/24/97 Grand Cayman, Time Deposit (2) 3.187 2,980,403 1.29
Total Investments in Germany
(Cost--$20,176,313) 19,925,029 8.60
Ireland Iep 7,320,000 7/27/97 Irish Government Treasury Gilt (1) 8.75 11,741,564 5.07
Total Investments in Ireland
(Cost--$12,085,996) 11,741,564 5.07
<PAGE>
Italy Lit 4,990,000,000 10/14/97 ABB Finance Inc. (2) 11.40 3,064,857 1.32
3,420,000,000 9/05/97 Abbey National Treasury Services
PLC (2) 10.70 2,084,893 0.90
14,960,000,000 8/01/97 Buoni Poliennali Del Tesoro
(Italian Government Bonds) (1) 8.50 8,992,202 3.88
7,300,000,000 2/01/99 Buoni Poliennali Del Tesoro (Italian
Government Bonds) (1) 9.50 4,552,178 1.96
2,360,000,000 6/02/97 Council of Europe (1) 11.40 1,428,922 0.61
1,770,000,000 5/12/97 Electricite de France (2) 8.00 1,058,166 0.46
Total Investments in Italy
(Cost--$22,670,780) 21,181,218 9.13
New Zealand NZ$ 17,000,000 6/18/97 New Zealand Treasury Bill (1) 9.50 11,623,575 5.02
30,000,000 9/17/97 New Zealand Treasury Bill (1) 7.40 20,117,690 8.68
Total Investments in New Zealand
(Cost--$31,302,732) 31,741,265 13.70
United Kingdom Pound 11,000,000 8/06/97 United Kingdom Gilt (1) 7.00 18,162,212 7.84
Sterling
Total Investments in the United
Kingdom (Cost--$18,132,183) 18,162,212 7.84
United States US$ 11,000,000 4/03/97 BZW Security, Repurchase Agreement*
purchased on 3/27/97 (2)5.40 11,000,000 4.74
11,000,000 4/01/97 Chase Mortgage Finance Corp.,
Repurchase Agreement* purchased
on 3/25/97 (2) 5.35 11,000,000 4.74
10,000,000 4/01/97 Citibank New York State, Repurchase
Agreement* purchased on 3/25/97 (2) 5.40 10,000,000 4.31
22,500,000 4/15/97 Federal Home Loan Mortgage Corp. (3) 5.44 22,452,400 9.69
10,481,000 4/01/97 HSBC Securities, Repurchase Agreement*
purchased on 3/31/97 (2) 5.875 10,481,000 4.52
11,000,000 4/01/97 Morgan (J.P.) & Company, Inc.,
Repurchase Agreement* purchased on
3/31/97 (2) 5.75 11,000,000 4.75
11,000,000 4/01/97 Morgan Stanley Group Inc., Repurchase
Agreement* purchased on 3/25/97 (2) 5.46 11,000,000 4.75
11,000,000 4/09/97 PaineWebber Inc., Repurchase Agreement*
purchased on 3/26/97 (2) 5.54 11,000,000 4.75
11,000,000 4/10/97 Sanwa Bank Ltd., Repurchase Agreement*
purchased on 3/27/97 (2) 5.46 11,000,000 4.75
<PAGE>
Total Investments in the United States
(Cost--$108,933,400) 108,933,400 47.00
Total Investments (Cost--$234,872,836) 232,959,271 100.52
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
OPTIONS Nominal Value Strike Percent of
WRITTEN Covered by Options Issue Price Value Net Assets
<S> <C> <S> <C> <C> <C>
Call Options 3,000,000 Canadian Bonds, 5.50% 2/01/00,
Written expiring April 1997 C$ 101.45 $ (216) 0.00%
Currency 9,000,000 British Pound, expiring April 1997 Pound 1.64 (28,800) (0.01)
Call Options Sterling
Written
Currency 9,000,000 Deutschemark, expiring April 1997 DM 1.697 (2,700) 0.00
Put Options 9,000,000 Italian Lira, expiring April 1997 Lit 1,688 (13,500) (0.01)
Written
Total Options Written (Premiums
Received--$20,686) (45,216) (0.02)
Total Investments, Net of Options Written (Cost--$234,852,150) 232,914,055 100.50
Unrealized Depreciation on Forward Foreign Exchange Contracts++++ (1,203,898) (0.52)
Other Assets Less Liabilities 54,742 0.02
------------ -------
Net Assets $231,764,899 100.00%
============ =======
Net Asset Value: Class A--Based on net assets of $2,598 and
332 shares outstanding $ 7.83
============
Class B--Based on net assets of $214,743,688
and 27,699,131 shares outstanding $ 7.75
============
Class C--Based on net assets of $154,451 and
20,281 shares outstanding $ 7.62
============
Class D--Based on net assets of $16,864,162
and 2,174,577 shares outstanding $ 7.76
============
<PAGE>
<FN>
Corresponding industry groups for securities (percent of net
assets):
(1)Sovereign Government Obligations--34.16%
(2)Financial Services--51.27%
(3)Sovereign/Regional Government Obligations--Agency--15.09%
*Repurchase Agreements are fully collateralized by US Government
& Agency Obligations.
++Commercial Paper and certain 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, 1997.
++++Forward foreign exchange contracts as of March 31, 1997 were
as follows:
Unrealized
Expiration Appreciation
Date (Depreciation)
Foreign Currency Purchased
Chf 6,478,335 April 1997 $ 12,438
DM 7,502,802 April 1997 13,502
Pound
Sterling 2,736,810 April 1997 5,463
Total (US$ Commitment--$13,498,000) 31,403
-----------
Foreign Currency Sold
A$ 16,369,374 April 1997 45,237
C$ 12,328,804 April 1997 32,272
Chf 13,457,724 April 1997 (165,529)
DM 14,348,145 April 1997 (100,978)
IEP 7,534,422 April 1997 (126,940)
Lit 36,977,071,999 April 1997 (319,639)
NZ$ 45,577,569 April 1997 (27,255)
Pound
Sterling 11,457,400 April 1997 (572,469)
Total (US$ Commitment--$123,232,210) (1,235,301)
-----------
Total Unrealized Depreciation on
Forward Foreign Exchange Contracts--Net $(1,203,898)
===========
</TABLE>
