MERRILL LYNCH
GLOBAL UTILITY
FUND, INC.
FUND LOGO
Quarterly Report
February 28, 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.
Merrill Lynch
Global Utility Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
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
Custodian
The Chase Manhattan Bank, N.A.
4 MetroTech Center, 18th Floor
Brooklyn, New York 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
The combination of heightened inflationary concerns, anticipation of
further tightening of monetary policy by the Federal Reserve Board,
the turmoil of the Mexican currency crisis and a weakening US dollar
all exerted negative influences on the US financial markets during
the February quarter. On the positive side, increasing signs that
the US economy may be losing momentum suggested that most of the
interest rate increases for this economic cycle may be behind us. As
a result of these economic crosscurrents, the US stock and bond
markets continued to be volatile during the period, but the Dow
Jones Industrial Average did close above the 4000 level for the
first time.
<PAGE>
The manufacturing sector proved to be the driving force behind the
US economy through the final weeks of 1994, making an important
contribution to the substantial increase in corporate earnings. US
companies have been successful at containing labor costs, which are
an important component of the inflation outlook. Growth in the
economy has not been translated into higher wages and benefits for
US workers. Consumer spending is growing at a slower pace than in
previous economic recoveries, and was unchanged for the month of
January. Another encouraging sign was the January increase in the
personal savings rate to the highest level in two years, following
an all-time annual low in 1994.
In the weeks ahead, investors will continue to assess economic data
and inflationary trends in order to gauge whether inflationary
pressures have been tempered and the economy is headed for moderate
growth (a "soft landing"), or if the lagged effect of interest rate
increases will result in a curtailment of economic growth. Investors
will also focus on the progress that the new Congress makes on both
reducing spending and the Federal budget deficit and passing tax
cuts that promote savings and investment. At this time, the recent
defeat of the balanced budget amendment in the Senate does not bode
well for the passage of sweeping fiscal reforms.
Portfolio Matters
During the quarter ended February 28, 1995, we added to our position
in Pacific Telesis Group and eliminated our holdings in Washington
Gas Light Co., Texas Utilities Co. and Enron Corp.
In addition, we reduced our holdings in Sonat, Inc., Distribuidora
Chilectra Metropolitana S.A. (ADR), Telefonica de Argentina S.A.
(ADR), Telecom Argentina STET S.A. (ADR), Compania de Telefonos de
Chile S.A. (ADR) and China Light & Power Co., Ltd. We eliminated
Washington Gas Light Co., a local gas distribution company, and
Enron Corp., a natural gas pipeline company, and reduced our shares
in Sonat, Inc., a gas pipeline company, early in the February
quarter when it appeared that the natural gas sector was under
pressure because of unseasonably warm weather. Texas Utilities Co.
was eliminated from the portfolio because of continued concern over
the safety of its dividend, especially since management reduced
expected sales growth from 3% to 2%. In January, we reduced several
of our Latin American holdings as a result of continued economic
uncertainty. The fundamentals of the companies were, for the most
part, unchanged.
Overall, the 43.5% of the Fund's net assets held in domestic utility
stocks at the end of the November quarter increased modestly, to
45.4%, while our holdings in foreign utility stocks declined
slightly from 46.7% to 44.8%. The cash position of 2.2% of net
assets was reduced from 2.9% at the end of the November quarter.
<PAGE>
In the near term, we expect continued weakness in several equity
markets given various economic and political concerns. Countries
such as Italy, France and Spain (which are currently 11.9% of net
assets) are expected to exhibit continued weakness as election
concerns weigh on investors. Many emerging markets will probably
remain under pressure as investors focus on the continuing problems
in Mexico. The Fund's direct Latin American exposure was as follows:
Chile, 2.7% of net assets; Argentina, 1.5%; Mexico, 0.8%; and
Brazil, 0.7%. Investor pessimism is reaching extreme levels in many
developing country markets. Under such circumstances we anticipate
that there will be more volatility before calm returns.
Long term, we expect improvement in the economic and political
concerns in the aforementioned markets. Furthermore, we believe that
investors will once again focus on the attractiveness of the
fundamentals of foreign utilities versus domestic utilities. Thus,
barring some continued weakness in the near term, we plan to stay
with our current strategy of favoring opportunities in foreign
markets at the expense of the US utility market. A McGraw-Hill study
estimates that electricity demand worldwide will grow at an average
annual rate of 2.9%. However, the estimated average annual growth
for certain regions such as the Asia/Pacific Rim and Latin America
is 4.5%. Expected growth for the US electric utility market is under
2%. Thus, while we will sacrifice the higher yields of the domestic
electric equities in favor of faster growth abroad, we believe that
the potential capital appreciation foreign utilities offer is enough
to offset the additional risks that are inherent in global
investing.
In the telephone sector, foreign markets typically have lower
service penetration than the United States, and therefore usually
offer faster demand growth. Furthermore, foreign telephone companies
tend to benefit quickly from the advances in technology since they
deploy state-of-the-art equipment and software. Finally, in terms of
the gas market outlook, most new power plants that are being built
will use natural gas. Concerns regarding environmental issues have
surfaced in many developing countries, but the environment will
benefit from the use of natural gas, since it is the clean burning
fuel.
In Conclusion
We thank you for your investment in Merrill Lynch Global Utility
Fund, Inc., and we look forward to discussing our investment
strategy and outlook with you in future shareholder reports.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Walter D. Rogers)
Walter D. Rogers
Vice President and Portfolio Manager
March 21, 1995
PERFORMANCE DATA
About Fund
Performance
Since October 21, 1994, investors have been able to pur-
chase 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 4% 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, 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.
* 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).
Performance data for the Fund's Class A and Class B Shares are
presented in the "Performance Summary," "Recent Performance Results"
and "Average Annual Total Return" tables on pages 4, 5 and 6. Data
for Class C and Class D Shares are also presented in the "Recent
Performance Results" and "Aggregate Total Return" tables on pages 5
and 6.
<PAGE>
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 February 28, 1995
and for Class C and Class D Shares for the since inception and 3-
month periods ended February 28, 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 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.
<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
1994 13.67 11.83 -- 0.480 -10.00
1/1/95--2/28/95 11.83 12.09 -- -- + 2.20
------ ------
Total $0.039 Total $1.881
Cumulative total return as of 2/28/95: +42.90%**
<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
1994 13.63 11.81 -- 0.379 -10.62
1/1/95--2/28/95 11.81 12.05 -- -- + 2.03
------ ------
Total $0.039 Total $1.542
Cumulative total return as of 2/28/95: +38.39%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/94 -10.00% -13.60%
Inception (12/28/90) through
12/31/94 + 8.74 + 7.64
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/94 -10.62% -14.08%
Inception (12/28/90) through
12/31/94 + 7.92 + 7.92
[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>
Aggregate
Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through
12/31/94 -3.35% -4.31%
[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*
Inception (10/21/94) through
12/31/94 -3.29% -7.16%
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
2/28/95 11/30/94 2/28/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
Class A Shares $12.09 $12.08 $13.13 -7.92% +0.08%
Class B Shares 12.05 12.04 13.08 -7.87 +0.08
Class C Shares 12.05 12.05 12.34 -2.35 0.00
Class D Shares 12.11 12.09 12.37 -2.10 +0.17
Class A Shares--Total Return -4.24(1) +1.14(2)
Class B Shares--Total Return -4.97(3) +0.93(4)
Class C Shares--Total Return -1.39(5) +0.99(5)
Class D Shares--Total Return -1.08(6) +1.21(6)
<PAGE>
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
++Investment results shown for Class C and Class D Shares are since
inception (10/21/94).
(1)Percent change includes reinvestment of $0.480 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.126 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.379 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.101 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.117 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.124 per share ordinary
income dividends.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Telecommunications 100,000 Telecom Argentina STET
S.A. (ADR)++ $ 3,770,294 $ 3,575,000 0.7%
200,000 Telefonica de Argentina S.A.
(ADR)++ 4,140,594 3,725,000 0.8
------------ ------------ -----
7,910,888 7,300,000 1.5
Utilities--Electric 6,600 Central Costanera S.A. (ADR)++ 158,400 160,050 0.0
Total Common Stocks in Argentina 8,069,288 7,460,050 1.5
Australia Utilities--Gas 2,556,885 Australian Gas & Light Co., Ltd. 6,603,542 8,033,093 1.6
Total Common Stocks in Australia 6,603,542 8,033,093 1.6
Austria Utilities--Gas 34,850 Energie Versorgung
Niederoesterreich AG (EVN) 3,050,015 4,203,934 0.9
Total Common Stocks in Austria 3,050,015 4,203,934 0.9
Brazil Utilities--Electric 160,000 Companhia Energetica de Minas
Gerais (CEMIG) (ADR)++ 3,840,000 3,200,000 0.7
Total Common Stocks in Brazil 3,840,000 3,200,000 0.7
<PAGE>
Canada Telecommunications 321,700 BC Telecom, Inc. 6,009,937 5,748,770 1.2
Utilities--Electric 458,600 Nova Scotia Power Co. 4,322,473 3,706,358 0.8
Utilities--Gas 573,700 Transcanada Pipeline Co. Ltd.
(ADR)++ 8,602,384 7,601,525 1.6
400,000 Westcoast Energy Inc. 6,901,727 6,100,000 1.3
------------ ------------ -----
15,504,111 13,701,525 2.9
Total Common Stocks in Canada 25,836,521 23,156,653 4.9
Chile Telecommunications 63,000 Compania de Telefonos de Chile
S.A. (ADR)++ 4,489,995 3,843,000 0.8
Utilities--Electric 65,000 Chilgener S.A. (ADR)++ 1,495,000 1,527,500 0.3
156,000 Distribuidora Chilectra
Metropolitana S.A. (ADR)++ 4,249,464 7,098,000 1.5
28,000 Enersis S.A. (ADR)++ 544,224 651,000 0.1
------------ ------------ -----
6,288,688 9,276,500 1.9
Total Common Stocks in Chile 10,778,683 13,119,500 2.7
Denmark Telecommunications 331,000 Tele Danmark A/S (ADR)++ 7,787,106 8,316,375 1.7
Total Common Stocks in Denmark 7,787,106 8,316,375 1.7
France Utilities--Water 107,688 Generale des Eaux 11,509,640 9,959,075 2.0
40,000 Lyonnaise des Eaux-Dumez 3,989,365 3,395,506 0.7
Total Common Stocks in France 15,499,005 13,354,581 2.7
Germany Utilities--Electric 20,000 VEBA AG 6,526,985 7,173,660 1.5
Total Common Stocks in Germany 6,526,985 7,173,660 1.5
Hong Kong Telecommunications 7,644,000 Hong Kong Telecommunications PLC 12,600,067 13,743,578 2.8
Utilities--Electric 2,504,700 China Light & Power Co., Ltd. 15,974,998 12,214,098 2.5
1,552,000 Hong Kong Electric Holdings, Ltd. 3,897,526 4,647,368 1.0
------------ ------------ -----
19,872,524 16,861,466 3.5
<PAGE>
Utilities--Gas 2,626,800 The Hong Kong & China Gas Co.,
Ltd. 4,674,416 4,586,962 0.9
218,900 The Hong Kong & China Gas Co.,
Ltd. (Warrants) (a) 0 35,393 0.0
------------ ------------ -----
4,674,416 4,622,355 0.9
Total Common Stocks & Warrants
in Hong Kong 37,147,007 35,227,399 7.2
India Utilities--Electric 49,500 CESC Ltd. (Units) 2,640,330 1,386,000 0.3
Total Common Stocks in India 2,640,330 1,386,000 0.3
Indonesia Telecommunications 5,500 P.T. Indonesian Satellite Corp.
(Indosat) (ADR)++ 176,275 195,938 0.0
Total Common Stocks in Indonesia 176,275 195,938 0.0
Italy Telecommunications 3,091,700 Societa Finanziara Telefonica
S.p.A.(STET) 5,780,442 7,118,985 1.5
5,000,000 Telecom Italia S.p.A. 7,383,795 12,068,448 2.5
------------ ------------ -----
13,164,237 19,187,433 4.0
Utilities--Gas 1,786,300 Italgas Torino 5,169,953 4,327,662 0.9
Total Common Stocks in Italy 18,334,190 23,515,095 4.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Korea Utilities--Electric 199,200 Korea Electric Power Corp.
(KEPCO) (ADR)++ $ 4,008,900 $ 3,735,000 0.8%
Total Common Stocks in Korea 4,008,900 3,735,000 0.8
Malaysia Telecommunications 1,385,000 Telekom Malaysia BHD 9,502,659 9,711,874 2.0
Total Common Stocks in Malaysia 9,502,659 9,711,874 2.0
<PAGE>
Mexico Telecommunications 140,000 Telefonos de Mexico, S.A. de
C.V. (ADR)++ 7,377,170 3,867,500 0.8
Total Common Stocks in Mexico 7,377,170 3,867,500 0.8
New Zealand Telecommunications 166,500 Telecom Corporation of New
Zealand Ltd. (ADR)++ 6,009,096 9,219,938 1.9
Total Common Stocks in
New Zealand 6,009,096 9,219,938 1.9
Philippines Telecommunications 100,000 Philippine Long Distance
Telephone Co. (ADR)++ 4,311,241 5,912,500 1.2
Utilities--Electric 38,000 Manila Electric Co. (MERALCO) 'B' 497,246 435,882 0.1
Total Common Stocks in the
Philippines 4,808,487 6,348,382 1.3
Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 6,712,568 1.4
Utilities--Electric 154,800 Empresa Nacional de Electricidad
S.A. (ADR)++ 5,123,952 6,753,150 1.4
92,000 Hidrocantabrico S.A. 3,107,921 2,457,273 0.5
808,500 Iberdrola I S.A. 4,998,321 5,066,186 1.0
------------ ------------ -----
13,230,194 14,276,609 2.9
Total Common Stocks in Spain 19,394,258 20,989,177 4.3
Thailand Telecommunications 15,000 TelecomAsia Corporation Public
Co., Ltd. (ADR)++ 328,050 495,000 0.1
Utilities--Electric 332,000 Electricity Generating Company of
Thailand (EGCOMP) 296,433 852,306 0.2
Total Common Stocks in Thailand 624,483 1,347,306 0.3
United Kingdom Telecommunications 845,000 British Telecommunications
PLC (Ord.) 5,900,759 5,043,192 1.0
180,000 Vodafone Group PLC (ADR)++ 5,355,931 5,490,000 1.1
------------ ------------ -----
11,256,690 10,533,192 2.1
<PAGE>
Utilities--Electric 445,000 Powergen PLC (Ord.) 3,253,482 3,496,619 0.7
Total Common Stocks in the
United Kingdom 14,510,172 14,029,811 2.8
United States Telecommunications 160,100 Airtouch Communications, Inc. 3,031,722 4,362,725 0.9
201,800 Ameritech Corp. 7,640,760 8,652,175 1.8
138,700 Bell Atlantic Corp. 7,358,558 7,437,787 1.5
149,400 BellSouth Corp. 8,454,788 8,814,600 1.8
235,700 GTE Corp. 8,322,438 7,866,487 1.6
147,700 NYNEX Corp. 6,204,823 5,797,225 1.2
212,100 Pacific Telesis Group 5,689,548 6,363,000 1.3
197,900 SBC Communications, Inc. 6,889,718 8,237,587 1.7
217,900 U S West Inc. 10,138,272 8,443,625 1.7
------------ ------------ -----
63,730,627 65,975,211 13.5
Utilities--Electric 289,500 Allegheny Power System, Inc. 7,707,195 6,803,250 1.4
207,200 Boston Edison Co. 5,530,724 5,076,400 1.0
184,000 Central & SouthWest Corp. 5,218,349 4,531,000 0.9
371,962 CINergy Corp. 8,749,712 9,206,059 1.9
218,200 Consolidated Edison Co. of
New York 6,893,524 6,027,775 1.2
138,900 Detroit Edison Co. 4,670,083 3,976,012 0.8
110,250 Dominion Resources, Inc. 4,427,302 4,189,500 0.9
215,000 Duke Power Co. 8,718,203 8,438,750 1.7
324,300 General Public Utilities Corp. 9,600,670 9,810,075 2.0
234,100 Houston Industries, Inc. 11,139,344 8,954,325 1.8
244,800 NIPSCO Industries, Inc. 6,616,371 7,741,800 1.6
221,000 New York State Electric &
Gas Corp. 7,952,312 4,751,500 1.0
185,700 Northeast Utilities Co. 4,974,996 4,224,675 0.9
295,500 PECO Energy Co. 8,689,805 7,904,625 1.6
323,000 PacifiCorp 6,465,176 6,177,375 1.3
192,000 Public Service Co. of Colorado 5,832,890 5,880,000 1.2
283,000 SCEcorp 6,379,546 4,634,125 0.9
381,200 Southern Co. 6,665,086 7,862,250 1.6
177,300 Western Resources Co. 5,664,717 5,629,275 1.2
------------ ------------ -----
131,896,005 121,818,771 24.9
Utilities--Gas 130,000 The Brooklyn Union Gas Co. 3,371,550 3,185,000 0.7
226,000 The Coastal Corp. 6,038,593 6,469,250 1.3
108,300 El Paso Natural Gas Co. 4,196,831 3,330,225 0.7
244,300 NICOR Inc. 5,363,453 6,046,425 1.2
79,000 National Fuel Gas Company 2,374,740 2,152,750 0.4
108,000 New Jersey Resources Corp. 3,063,867 2,497,500 0.5
236,000 Questar Corp. 6,554,436 6,814,500 1.4
127,300 Sonat, Inc. 3,309,934 3,691,700 0.8
------------ ------------ -----
34,273,404 34,187,350 7.0
<PAGE>
Total Common Stocks in the
United States 229,900,036 221,981,332 45.4
Total Investments in
Common Stocks & Warrants 442,424,208 439,572,598 90.2
<CAPTION>
Face
Amount Fixed-Income Securities
<S> <S> <C> <S> <C> <C> <C>
Australia Telecommunications US$ 7,960,000 Telstra Corp., Ltd., 6.50% due
7/31/2003 8,115,578 7,183,900 1.5
Total Fixed-Income Securities
in Australia 8,115,578 7,183,900 1.5
Canada Utilities--Electric 2,000,000 Hydro-Quebec, 9.23% due
12/04/2000 2,038,540 2,115,460 0.4
Total Fixed-Income Securities
in Canada 2,038,540 2,115,460 0.4
Japan Telecommunications 4,000,000 Nippon Telegraph & Telephone
Corp., 9.50% due 7/27/1998 4,244,380 4,245,960 0.9
Total Fixed-Income Securities
in Japan 4,244,380 4,245,960 0.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Face Percent of
COUNTRY Industries Amount Fixed Income Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Korea Telecommunications US$ 2,500,000 Korea Telecom, 7.40% due
12/01/1999 $ 2,499,500 $ 2,438,925 0.5%
Utilities--Electric 6,000,000 Korea Electric Power Corp.,
6.375% due 12/01/2003 5,913,060 5,293,500 1.1
Total Fixed-Income Securities
in Korea 8,412,560 7,732,425 1.6
<PAGE>
United Kingdom Telecommunications 3,500,000 Bell Cablemedia PLC, 11.95%*
due 7/15/2004 2,105,640 2,104,375 0.4
Total Fixed-Income Securities
in the United Kingdom 2,105,640 2,104,375 0.4
United States Telecommunications 4,000,000 Rochester Telephone Corp.,
9.25% due 6/01/2000 4,111,200 4,270,320 0.9
Utilities--Electric 4,000,000 Consumer Power Co., 8.875% due
11/15/1999 4,190,000 4,102,240 0.8
4,000,000 Niagara Mohawk Power Corp.,
9.50% due 6/01/2000 4,197,640 4,178,200 0.9
------------ ------------ -----
8,387,640 8,280,440 1.7
Total Fixed-Income Securities
in the United States 12,498,840 12,550,760 2.6
Total Investments in
Fixed-Income Securities 37,415,538 35,932,880 7.4
Short-Term Securities
Repurchase 10,657,000 PaineWebber Inc., purchased
Agreement** on 2/28/1995 to yield 6.03%
to 3/01/1995 10,657,000 10,657,000 2.2
Total Investments in
Short-Term Securities 10,657,000 10,657,000 2.2
Total Investments $490,496,746 486,162,478 99.8
============
Other Assets Less Liabilities 758,853 0.2
------------ ------
Net Assets $486,921,331 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $52,284,489
and 4,323,505 shares outstanding $ 12.09
============
Class B--Based on net assets of $432,206,335
and 35,862,381 shares outstanding $ 12.05
============
Class C--Based on net assets of $1,396,936
and 115,931 shares outstanding $ 12.05
============
Class D--Based on net assets of $1,033,571
and 85,330 shares outstanding $ 12.11
============
<PAGE>
<FN>
*Represents the yield to maturity.
**Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
++American Depositary Receipts (ADR).
++++Global Depositary Shares (GDS).
(a)Warrants entitle the Fund to purchase a predetermined number of
shares of Common Stock. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration
date.
</TABLE>
PORTFOLIO INFORMATION
Worldwide
Investments as of
February 28, 1995
Top Ten Holdings Percent of
(Equity Investments) Net Assets
Hong Kong Telecommunications PLC 2.8%
China Light & Power Co., Ltd. 2.5
Telecom Italia S.p.A 2.5
Generale des Eaux 2.0
General Public Utilities Corp. 2.0
Telekom Malaysia BHD 2.0
Telecom Corporation of New Zealand Ltd. (ADR) 1.9
CINergy Corp. 1.9
Houston Industries, Inc. 1.8
BellSouth Corp. 1.8
Deletions
Enron Corp.
Texas Utilities Co.
Washington Gas Light Co.
