MERRILL
LYNCH
GLOBAL
UTILITY
FUND, INC.
Fund Logo
Quarterly Report February 28, 1994
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.
Merrill Lynch
Global Utility Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL UTILITY FUND, INC.
Officers and
Directors
Arthur Zeikel, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Donald C. Burke, Vice President
Walter D. Rogers, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Patrick D. Sweeney, Secretary
<PAGE>
Custodian
The Chase Manhattan Bank, N. A.
1 Chase Manhattan Plaza
New York, New York 10005
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
Inflationary expectations changed sharply during the February
quarter. Following better-than-expected economic results, Federal
Reserve Board Chairman Alan Greenspan indicated in Congressional
testimony in January that continued strong expansion in the
economy would lead the central bank to tighten monetary policy in
an effort to control inflation. On February 4, 1994, the central
bank broke with tradition and publicly announced a modest
increase in short-term interest rates.
Rather than view the Federal Reserve Board's action as a
preemptive strike against inflation, fixed-income investors
focused on Chairman Greenspan's implicit promise of further
tightening should the rate of inflation accelerate, and bond
prices declined sharply. The setback in the bond market was also
reflected in greater stock market volatility.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating
economy that could prompt successive Federal Reserve Board
actions to raise short-term interest rates. At this time, there
is little evidence that the rate of inflation will increase
rapidly. Job growth is sluggish, and new claims for unemployment
insurance have trended higher since the beginning of the year.
Commodity prices have risen somewhat, but in many cases these
increases are occurring from very depressed levels. Therefore,
although the secular long-term trend toward lower interest rates
may be over, it is not yet certain whether the pace of economic
activity will accelerate to the point where extensive Federal
Reserve Board tightening will be necessary to contain inflation.
<PAGE>
Portfolio Matters
Merrill Lynch Global Utility Fund, Inc. ended the February
quarter with net assets of $704.7 million, up from $678.2 million
at the end of November. During the quarter the Fund added seven
new investments to the portfolio and eliminated two. All of the
new investments, with the exception of MCI Communications Corp.,
were in foreign holdings. The new positions taken increased our
holdings in Argentina, France, Spain and the United Kingdom.
Furthermore, all of our additions to existing holdings were made
to non-US investments. Our continued focus on investments outside
of the United States reflects the relative attractiveness of non-
US utilities compared to their domestic counterparts. As many
more privatizations take place overseas and the fundamental
outlook for domestic companies remains lackluster, we expect this
investment trend to continue in the foreseeable future.
MCI Communications Corp. is the second largest long distance
telephone company in the United States with an approximate 20%
share of the US market. In 1993, British Telecommunications PLC
announced that it would align itself with MCI by buying a 20%
stake in the company. The alliance provides benefits to both
companies in terms of marketing and technology and gives MCI
greater financial flexibility to pursue additional investment
opportunities. In addition to this UK relationship, MCI already
has a strategic alliance with Stentor, which is a group that
represents Bell Canada and other Canadian telephone companies.
More recently, MCI has announced that it also will be forming a
strategic alliance with Mexican partners to pursue telecommunica-
tions opportunities in that market. Overall, MCI continues to
build market share at home, improve its profit outlook by aggress-
ively seeking lower access costs, and further position itself in the
global arena.
We added to our water utility position with the purchase of
Compagnie Lyonnaise des Eaux-Dumez, a French-based company. While
the principal contributor to the company's revenues is its water
business, other operations include waste management, energy
technologies, broadcast and cable television, and building and
civil engineering operations. Lyonnaise derives just over half of
its revenues from France, with other European countries the next
largest contributors, followed by North and South America. The
Asia/Pacific region as well as Africa and the Middle East are
still rather small contributors to revenues. The company's goal
is to generate one-third of its revenue in France, one-third in
the rest of Europe, and one-third in other countries.
During the February quarter, the Fund also added an investment in
Hidrocantabrico S.A., a Spanish utility company. The utility is a
surplus electric generator with a highly efficient plant. Relative
to other Spanish utilities, Hidrocantabrico's financial position is
conservative. It has a strong cash flow, which allows for good divi-
dend growth. The company has been a buyer of utility assets, which
may in turn result in a higher debt level going forward. In general,
Hidrocantabrico is a beneficiary of regulatory changes in the Spanish
utility market and offers above-average dividend growth.
<PAGE>
Another new investment is Central Costanera S.A., an Argentine-
based company that owns and operates a dual-fired thermoelectric
generating plant. As of late 1993, the plant accounted for
approximately 9% of the total installed generating capacity and
about 19% of the installed thermal generating capacity in
Argentina. Just under 80% of the company's revenues are derived
from long-term sales contracts which are not set to expire until
the middle of the year 2000. The company was formed in 1992 as
part of the government's program of economic reform and privat-
ization. A majority of its common stock is presently owned by an
international consortium that consists of seven Argentine, Chilean
and US companies, and about 10% is owned by certain employees of
the company. In December 1993, the Argentine government sold its 30%
stake in Central Costanera in a common stock offering in which the
Fund participated.
AES China Generating Co., Ltd. is organized as a Bermuda
subsidiary of the AES Corporation (a US-market listed security)
to develop, acquire, construct, own and operate electric power
generation facilities in the People's Republic of China (PRC).
Demand for electricity has been greater than supply in China,
given the strong economic growth in the country. The PRC's
Ministry of Electric Power has stated that there is a need for
approximately 17,000 megawatts of new electric generating
capacity annually through the year 2000. AES China Generating
provides an opportunity for investors to participate in power
generation, a fast developing market.
We also added shares of Vodafone Group PLC, a UK-based provider
of cellular telephone service. While the bulk of its revenues and
profits is derived from the company's UK operations, future
growth opportunities are expected to come from its pursuit of
cellular license opportunities around the world. Vodafone has
interests in Australia, France, Malta, Hong Kong, Germany,
Greece, Sweden and Denmark, as well as in some emerging markets.
From a financial perspective, Vodafone is fairly unique in the
cellular telephone business, since it has positive earnings per
share and pays a dividend that is expected to continue to grow.
Finally, we shifted our investments in Canada by selling BCE,
Inc. and buying shares of BC Telecom, Inc., given its faster
dividend growth and better near-term fundamental outlook. BC
Telecom is the second-largest telecommunications company in
Canada, operating in the province of British Columbia. The
company's mobile cellular business continues to be one of the
most profitable, with significant market penetration. Local
service has been growing at a healthy pace, reflecting the
region's strong economic environment. With the company's good
earnings growth and the attractive dividend yield of its shares,
we believe that BC Telecom offers a desirable total return
opportunity.
<PAGE>
In Conclusion
We thank you for your investment in Merrill Lynch Global Utility
Fund, Inc., and we look forward to reviewing our outlook and
strategy with you again in our upcoming semi-annual report to
shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Walter D. Rogers)
Walter D. Rogers
Vice President and Portfolio Manager
March 18, 1994
PERFORMANCE DATA
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.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/93 +24.13% +16.06%
Inception (12/28/90) through
12/31/93 +15.82 +13.25
[FN]
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/93 +23.17% +19.17%
Inception (12/28/90) through
12/31/93 +14.91 +14.41
[FN]
*Maximum contingent deferred sales charge is 4% and is
reduced to 0% after 4 years.
**Assuming payment of applicable contingent deferred sales
charge.
<PAGE>
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
2/28/94 11/30/93 2/28/93 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares $13.13 $13.22 $12.22 + 7.67%(1) -0.48%(1)
Class B Shares 13.08 13.17 12.18 + 7.61(1) -0.48(1)
Class A Shares--Total Return +11.23(2) +0.45(3)
Class B Shares--Total Return +10.44(4) +0.26(5)
<FN>
*Investment results shown for the 3-month and 12-month
periods are before the deduction of any sales charges.
(1)Percent change includes reinvestment of $0.027 per share capital gains distributions.
(2)Percent change includes reinvestment of $0.424 per share ordinary income dividends and
$0.027 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.124 per share ordinary income dividends and
$0.027 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.337 per share ordinary income dividends and
$0.027 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.099 per share ordinary income dividends and
$0.027 per share capital gains distributions.
</TABLE>
<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>
12/28/90--12/31/90 $10.00 $10.01 -- -- + 0.10%
1991 10.01 10.93 -- $0.508 +14.74
1992 10.93 11.40 $0.012 0.469 + 8.97
1993 11.40 13.67 0.027 0.424 +24.13
1/1/94--2/28/94 13.67 13.13 -- -- - 3.95
------ ------
Total $0.039 Total $1.401
Cumulative total return as of 2/28/94: 49.23%**
<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>
<PAGE>
<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>
12/28/90--12/31/90 $10.00 $10.01 -- -- + 0.10%
1991 10.01 10.92 -- $0.435 +13.84
1992 10.92 11.38 $0.012 0.391 + 8.12
1993 11.38 13.63 0.027 0.337 +23.17
1/1/94--2/28/94 13.63 13.08 -- -- - 4.04
------ ------
Total $0.039 Total $1.163
Cumulative total return as of 2/28/94: 45.62%**
<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>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Telecommunications 138,479 Telecom Argentina Stet S.A. (ADR)++ $ 5,075,039 $ 8,377,979 1.2%
128,513 Telefonica de Argentina S.A. (ADR)++ 4,824,906 9,188,679 1.3
------------ ------------ ------
9,899,945 17,566,658 2.5
Utilities--Electric 6,600 Central Costanera S.A. (ADR)++ 158,400 211,200 0.0
Total Common Stocks in Argentina 10,058,345 17,777,858 2.5
Australia Utilities--Gas 2,479,584 Australian Gas & Light Co., Ltd. 6,364,362 7,490,823 1.1
Total Common Stocks in Australia 6,364,362 7,490,823 1.1
Austria Utilities--Gas 34,850 Energie Versorgung Niederoesterreich
AG (EVN) 3,050,015 4,638,916 0.7
Total Common Stocks in Austria 3,050,015 4,638,916 0.7
<PAGE>
Canada Telecommunications 247,900 BC Telecom, Inc. 4,667,353 4,675,283 0.7
Utilities--Electric 458,600 Nova Scotia Power Co. 4,322,473 4,409,289 0.6
Utilities--Gas 573,700 Transcanada Pipeline Co. Ltd. (ADR)++ 8,602,384 8,462,075 1.2
Total Common Stocks in Canada 17,592,210 17,546,647 2.5
Chile Telecommunications 84,300 Compania de Telefonos de Chile,
S.A. (ADR)++ 5,871,894 9,842,025 1.4
Utilities--Electric 186,000 Distribuidora Chilectra Metropolitana
S.A. (ADR)++ 5,031,451 6,905,250 1.0
28,000 Enersis S.A. (ADR)++ 544,224 595,000 0.1
------------ ------------ ------
5,575,675 7,500,250 1.1
Total Common Stocks in Chile 11,447,569 17,342,275 2.5
France Utilities--Water 26,922 Compagnie Generale des Eaux 11,509,640 12,285,179 1.7
40,000 Compagnie Lyonnaise des Eaux-Dumez 3,989,365 4,007,933 0.6
Total Common Stocks in France 15,499,005 16,293,112 2.3
Hong Kong Telecommunications 7,644,000 Hong Kong Telecommunications PLC 12,600,067 14,445,043 2.0
Utilities--Electric 4,061,200 China Light & Power Co., Ltd. 23,403,683 21,683,213 3.1
1,552,000 Hong Kong Electric Holdings, Ltd. 3,897,526 4,941,652 0.7
------------ ------------ ------
27,301,209 26,624,865 3.8
Utilities--Gas 2,189,000 The Hong Kong & China Gas Co., Ltd. 4,674,416 5,694,913 0.8
Total Common Stocks in Hong Kong 44,575,692 46,764,821 6.6
Italy Telecommunications 1,786,300 Italgas Torino 5,169,953 5,688,989 0.8
3,091,700 Societa Finanziaria Telefonica
S.p.A. (STET) 5,780,442 6,910,859 1.0
5,505,250 Societa Italiana Esercizio Telecom
S.p.A. (SIP) 7,916,167 13,558,682 1.9
Total Common Stocks in Italy 18,866,562 26,158,530 3.7
<PAGE>
Malaysia Telecommunications 1,385,000 Telekom Malaysia BHD 9,502,659 9,551,724 1.3
Total Common Stocks in Malaysia 9,502,659 9,551,724 1.3
Mexico Telecommunications 140,000 Telefonos de Mexico, S.A. de C.V. (ADR)++ 7,377,170 9,397,500 1.3
Total Common Stocks in Mexico 7,377,170 9,397,500 1.3
New Zealand Telecommunications 216,500 Telecom Corporation of New Zealand
Ltd. (ADR)++ 7,525,095 10,635,563 1.5
Total Common Stocks in New Zealand 7,525,095 10,635,563 1.5
Philippines Telecommunications 134,100 Philippine Long Distance
Telephone Co. (ADR)++ 5,583,592 9,604,913 1.4
Total Common Stocks in the Philippines 5,583,592 9,604,913 1.4
Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 7,639,795 1.1
Utilities--Electric 154,800 Empresa Nacional de Electricidad
S.A. (ADR)++ 5,123,952 8,185,050 1.2
92,000 Hidrocantabrico S.A. 3,107,921 3,228,942 0.5
808,500 Iberdrola I S.A. 4,998,321 6,199,082 0.9
------------ ------------ ------
13,230,194 17,613,074 2.6
Total Common Stocks in Spain 19,394,258 25,252,869 3.7
Thailand Telecommunications 15,000 TelecomAsia Corporation Public
Co., Ltd. PLC (ADR)++ 328,050 615,000 0.1
Total Common Stocks in Thailand 328,050 615,000 0.1
United Telecommunications 845,000 British Telecommunications PLC (Ord.) 5,900,759 5,449,608 0.8
Kingdom 1,426,860 British Telecommunications PLC (Part Pay) 6,877,400 6,710,794 0.9
60,000 Vodafone Group PLC (ADR)++ 5,355,931 5,422,500 0.8
------------ ------------ ------
18,134,090 17,582,902 2.5
Total Common Stocks in the United Kingdom 18,134,090 17,582,902 2.5
<PAGE>
United Telecommunications 111,200 American Telephone & Telegraph Co. 6,407,214 5,838,000 0.8
States 220,800 Ameritech Corp. 8,274,518 8,859,600 1.3
151,700 Bell Atlantic Corp. 8,027,948 8,305,575 1.2
163,400 BellSouth Corp. 9,162,908 9,109,550 1.3
257,700 GTE Corp. 9,016,758 8,407,463 1.2
208,000 MCI Communications Corp. 5,645,600 5,668,000 0.8
205,700 NYNEX Corp. 8,342,529 7,662,325 1.1
175,100 Pacific Telesis Group 7,853,346 9,542,950 1.3
216,900 Southwestern Bell Corp. 7,422,726 8,486,213 1.2
319,900 US West, Inc. 14,757,846 13,115,900 1.9
------------ ------------ ------
84,911,393 84,995,576 12.1
Utilities--Electric 117,000 AES China Generating Co., Ltd. 1,872,000 1,872,000 0.3
326,000 Allegheny Power System, Inc. 8,652,910 7,864,750 1.1
220,200 Boston Edison Co. 5,789,754 5,945,400 0.8
210,000 Central & SouthWest Corp. 5,840,299 5,748,750 0.8
231,200 Consolidated Edison Co. of New York 7,260,774 6,849,300 1.0
146,900 Detroit Edison Co. 4,899,043 4,131,562 0.6
110,250 Dominion Resources, Inc. 4,427,302 4,547,812 0.6
190,000 Duke Power Co. 8,095,413 7,338,750 1.0
267,500 Entergy Corp. 8,646,550 8,894,375 1.3
414,800 General Public Utilities Corp. 11,683,837 11,873,650 1.7
339,100 Houston Industries, Inc. 15,787,663 13,691,162 1.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Utilities--Electric 338,600 Long Island Lighting Co. $ 8,537,882 $ 7,830,125 1.1%
States (concluded) 259,800 NIPSCO Industries, Inc. 6,905,271 7,858,950 1.1
(concluded) 235,000 New York State Electric & Gas Corp. 8,459,615 6,403,750 0.9
196,700 Northeast Utilities Co. 5,253,338 4,597,862 0.6
385,600 PSI Resources, Inc. 9,257,252 9,254,400 1.3
342,000 PacifiCorp 6,846,153 6,156,000 0.9
440,000 PECO Energy Co.(a) 12,186,735 11,825,000 1.7
164,800 Pennsylvania Power & Light Co. 4,428,338 3,934,600 0.6
200,000 Public Service Co. of Colorado 6,071,450 5,975,000 0.8
186,300 Rochester Gas & Electric Corp. 4,775,302 4,541,062 0.6
300,000 SCEcorp 6,765,509 5,400,000 0.8
202,100 Southern Co. 6,989,691 8,311,362 1.2
188,300 Texas Utilities Co. 7,596,591 7,273,088 1.0
203,300 Western Resources Co. 6,442,514 6,175,238 0.9
------------ ------------ ------
183,471,186 174,293,948 24.6
<PAGE>
Utilities--Gas 130,000 Brooklyn Union Gas Co. 3,371,550 3,412,500 0.5
240,000 The Coastal Corp. 6,414,080 7,560,000 1.1
144,600 Consolidated Natural Gas Co. 6,463,720 6,344,325 0.9
236,300 El Paso Natural Gas Co. 8,352,615 9,127,088 1.3
399,100 Enron Corp. 8,119,749 12,721,312 1.8
258,300 NICOR Inc. 5,661,173 6,974,100 1.0
115,000 New Jersey Resources Corp. 3,262,177 2,990,000 0.4
250,000 Questar Corp. 6,792,478 7,687,500 1.1
338,300 Sonat, Inc. 7,262,851 10,275,862 1.5
116,300 Washington Gas Light Co. 4,016,691 4,666,538 0.7
365,000 Williams Co., Inc. 6,931,607 8,988,125 1.3
------------ ------------ ------
66,648,691 80,747,350 11.6
Total Common Stocks in the United States 335,031,270 340,036,874 48.3
Total Investments in Common Stocks 530,329,944 576,690,327 82.0
<CAPTION>
Face Amount Fixed-Income Securities
<S> <C> <C> <S> <C> <C> <C>
Australia Telecommunications US$7,960,000 Telstra Corp., Ltd., 6.50% due 7/31/2003 8,115,578 7,793,835 1.1
Total Fixed-Income Securities in Australia 8,115,578 7,793,835 1.1
Canada Utilities--Electric 2,000,000 Hydro-Quebec, 9.23% due 12/04/2000 2,038,540 2,285,676 0.3
Total Fixed-Income Securities in Canada 2,038,540 2,285,676 0.3
Japan Telecommunications 4,000,000 Nippon Telegraph & Telephone Corp.,
9.50% due 7/27/1998 4,244,380 4,531,228 0.6
Total Fixed-Income Securities in Japan 4,244,380 4,531,228 0.6
Korea Telecommunications 2,500,000 Korea Telecom, 7.40% due 12/01/1999 2,499,500 2,602,272 0.4
Utilities--Electric 6,000,000 Korea Electric Power Corp., 6.375%
due 12/01/2003 5,913,060 5,709,288 0.8
Total Fixed-Income Securities in Korea 8,412,560 8,311,560 1.2
<PAGE>
United Telecommunications 4,000,000 Rochester Telephone Corp., 9.25%
States due 6/01/2000 4,111,200 4,604,800 0.6
Utilities--Electric 4,000,000 Consumer Power Co., 8.875% due 11/15/1999 4,190,000 4,438,188 0.6
4,000,000 Niagara Mohawk Power Corp., 9.50%
due 6/01/2000 4,197,640 4,635,908 0.7
------------ ------------ ------
8,387,640 9,074,096 1.3
Total Fixed-Income Securities
in the United States 12,498,840 13,678,896 1.9
Total Investments in
Fixed-Income Securities 35,309,898 36,601,195 5.1
<CAPTION>
Short-Term Securities
<S> <C> <C> <S> <C> <C> <C>
United Commercial Paper* $25,000,000 B.A.T. Capital Corp., 3.05% due 3/01/1994 25,000,000 25,000,000 3.5
States 30,000,000 Daimler-Benz AG, 3.07% due 3/03/1994 29,994,883 29,994,883 4.3
8,000,000 PepsiCo., Inc., 3.10% due 3/09/1994 7,994,080 7,994,080 1.1
------------ ------------ ------
62,988,963 62,988,963 8.9
Repurchase 30,248,000 Bankers First Corp., purchased on
Agreement** 2/28/1994 to yield 3.45% to 3/01/1994 30,248,000 30,248,000 4.3
Total Investments in Short-Term Securities 93,236,963 93,236,963 13.2
Total Investments $658,876,805 706,528,485 100.3
============
Liabilities in Excess of Other Assets (1,813,627) (0.3)
------------ ------
Net Assets $704,714,858 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $82,935,043
and 6,317,061 shares outstanding $ 13.13
============
Class B--Based on net assets of $621,779,815
and 47,541,776 shares outstanding $ 13.08
============
<FN>
*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.
**Repurchase Agreements are fully collateralized by US Government or Agency Obligations.
++American Depositary Receipts (ADR).
(a)Formerly Philadelphia Electric Co.
</TABLE>
<PAGE>
PORTFOLIO INFORMATION
Worldwide
Investments as of
February 28, 1994
Top Ten Holdings Percent of
(Equity Investments) Net Assets
China Light & Power Co., Ltd. 3.1%
Hong Kong Telecommunications PLC 2.0
Houston Industries, Inc. 1.9
Societa Italiana Escercizio Telecom S.p.A. (SIP) 1.9
US West, Inc. 1.9
Enron Corp. 1.8
Compagnie Generale des Eaux 1.7
General Public Utilities Corp. 1.7
PECO Energy Co. 1.7
Telecom Corporation of New Zealand Ltd. (ADR) 1.5
Additions
AES China Generating Co., Ltd.
BC Telecom, Inc.
Central Costanera S.A. (ADR)
Compagnie Lyonnaise des Eaux-Dumez
Hidrocantabrico S.A.
MCI Communications Corp.
Vodafone Group PLC (ADR)
Deletions
BCE, Inc. (ADR)
Compagnie Generale des Eaux (Bonus Rights)
