MERRILL LYNCH
GLOBAL UTILITY
FUND, INC.
FUND LOGO
Semi-Annual Report
May 31, 1995
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
<PAGE>
Merrill Lynch
Global 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
Custodian
The Chase Manhattan Bank, N. A.
4 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
<PAGE>
Worldwide
Investments as
of
5/31/95
Top Ten Holdings Percent of
(Equity Investments) Net Assets
China Light & Power Co., Ltd. 2.8%
Telecom Italia S.p.A. 2.7
Generale des Eaux 2.1
Houston Industries, Inc. 2.1
CINergy Corp. 2.1
General Public Utilities Corp. 2.0
Tele Danmark A/S (ADR) 2.0
Telecom Corporation of New Zealand Ltd. (ADR) 2.0
BellSouth Corp. 1.9
U S West, Inc. 1.9
Additions
Frontier Corp.
Deletions
Airtouch Communications, Inc.
El Paso Natural Gas Co.
Hydro-Quebec, 9.23% due 12/04/2000
Korea Electric Power Corp., 6.375% due 12/01/2003
National Fuel Gas Company
New Jersey Resources Corp.
Nippon Telegraph & Telephone Corp., 9.50% due 7/27/1998
<PAGE>
DEAR SHAREHOLDER
Increasing signs of slowing economic growth led to higher US stock
and bond prices during the May quarter. Recent declines in
indicators such as new home sales and durable goods orders were
reflected in the slight downward revision in first-quarter gross
domestic product growth to 2.7% from 2.8%. At the same time,
inventories of unsold goods grew at a slower rate than previously
estimated, while consumer, residential construction and capital
goods spending were revised upward. As a result, it appears that the
economy is losing enough momentum to keep inflation under control
and preclude further significant monetary policy tightening by the
Federal Reserve Board.
Despite some periods of strengthening, the US dollar has been
persistently weak relative to the yen and the Deutschemark. Large
trade deficits and exports of capital from the United States have
kept the US currency in a decade-long decline relative to the
Japanese and German currencies. Over the longer term, since the
United States has the highest productivity among industrialized
nations and among the lowest labor costs, demand for US dollar-
denominated assets may improve. However, a reduction of the still-
widening US trade deficit may be necessary before the US dollar
appreciates substantially relative to the yen and the Deutschemark.
Another important factor that will continue to influence currency
markets is the increasing possibility of US/Japanese trade
sanctions.
Thus far in 1995, economic developments have been very positive for
the US stock and bond markets. Continued signs of a moderating
expansion and well-contained inflationary pressures would provide
further assurance that the peak in interest rates is behind us,
creating a stronger foundation for higher stock and bond prices. On
the other hand, indications of reaccelerating growth and increasing
inflationary pressures would be negative developments for the US
financial markets.
<PAGE>
Portfolio Matters
During the quarter ended May 31, 1995, we added one new position to
Merrill Lynch Global Utility Fund, Inc.'s portfolio, Frontier Corp.,
formerly known as Rochester Telephone Company. Frontier Corp.,
headquartered in Rochester, New York, which provides local, long-
distance and wireless telephone service and owns 36 small telephone
companies operating in 13 states. We added the stock to the
portfolio following the price weakness that resulted from the
announcement that the company would acquire ALC Communications Inc.,
a long-distance reseller. We viewed the weakness as an over-reaction
by investors and the acquisition to be a good fit with Frontier's
existing long-distance service.
We eliminated four domestic equity positions and three bond holdings
during the May quarter. In March, we eliminated three of our equity
gas positions because of concerns over excess supply caused by a
warmer-than-expected winter. We eliminated our holdings in Airtouch
Communications, Inc., a non-dividend paying entity that we received
as the result of a spin-off from Pacific Telesis Group. We believed
that the company was fairly valued relative to its near-term
fundamental outlook. We reduced our positions in several foreign
holdings primarily to capture price appreciation.
Overall, the Fund's weighting in domestic equities modestly
increased even with the elimination of four holdings and a small
position in one new holding. This was the result of positive price
performance for the utility sector during the May quarter as long-
term interest rates declined and there was little new fundamental
news. Several of the emerging markets showed some gains during the
May quarter. The Fund's 3.4% weighting in Chile showed a price
improvement of nearly 29%, and its 2.2% weighting in Argentina
advanced in price by 33%. Some of the more mature overseas markets
also showed improvement as did our holdings. Our two holdings in
France, which together account for just under 3% of net assets,
advanced in price by over 20%. Most of the markets that the Fund's
assets are invested in showed improvement during the quarter ended
May 31, 1995, as economic and political concerns decreased.
We see no reason to change our current investment strategy but will
continue to eliminate or reduce positions as they become fairly
valued or when fundamentals warrant a change in opinion. The number
of new and secondary offerings in foreign markets is expected to
increase in the second half of 1995 and into 1996. This may result
in a modest shift in our geographic asset allocation. On the
domestic side, we expect a modest pull-back in share prices
following the recent strong run-up in utility issues. However, we
believe that domestic electric utility stocks are still undervalued
compared to fixed-income yields and the overall stock market, and
stock prices therefore could still improve.
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.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Walter D. Rogers)
Walter D. Rogers
Vice President and Portfolio Manager
June 29, 1995
Proxy
Results
During the six-month period ended May 31, 1995, Merrill Lynch Global
Utility Fund, Inc. shareholders voted on the following proposals.
Proposals 1, 2 and 4 were approved at a special shareholders'
meeting on September 26, 1994. Proposal 3 was passed at a special
shareholders' meeting on January 31, 1995. The description of each
proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Ronald W. Forbes 46,977,978 739,168
Cynthia A. Montgomery 46,957,676 759,470
Charles C. Reilly 46,969,707 747,438
Kevin A. Ryan 46,984,831 732,314
Richard R. West 46,980,849 736,297
Arthur Zeikel 46,967,259 749,887
<PAGE>
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Deloitte & Touche LLP as the Fund's independent auditors. 46,126,183 364,836 1,226,127
3. To approve certain changes to the Fund's fundamental investment restrictions. 23,536,576 984,449 1,758,524
4. To amend the Fund's articles of incorporation to implement the Merrill Lynch
Select Pricing SM System. 42,728,509 1,757,419 3,231,218
</TABLE>
PERFORMANCE DATA
About Fund
Performance
Since October 21, 1994, investors have been able to purchase shares
of the Fund through the Merrill Lynch Select Pricing SM System,
which offers four pricing alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 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 below and on pages 5 and 6.
Data for Class C and Class D Shares are presented in the "Recent
Performance Results" and "Aggregate Total Return" tables below and
on page 6.
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 May 31, 1995 and
for Class C and Class D Shares for the since inception and 3-month
periods ended May 31, 1995. All data in this table assume imposition
of the actual total expenses incurred by each class of shares during
the relevant period.
<PAGE>
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 3/31/95 -0.01% -4.01%
Inception (12/28/90) through 3/31/95 +8.94 +7.90
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/95 -0.70% -4.53%
Inception (12/28/90) through 3/31/95 +8.11 +8.11
[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 3/31/95 -0.74% -1.72%
[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 3/31/95 -0.34% -4.32%
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
<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--5/31/95 11.83 13.11 -- 0.091 +11.66
------ ------
Total $0.039 Total $1.972
Cumulative total return as of 5/31/95: +56.13%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
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>
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--5/31/95 11.81 13.06 -- 0.068 +11.21
------ ------
Total $0.039 Total $1.610
Cumulative total return as of 5/31/95: +50.84%**
<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>
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
5/31/95 2/28/95 5/31/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
Class A Shares $13.11 $12.09 $12.66 +3.55% +8.44%
Class B Shares 13.06 12.05 12.62 +3.49 +8.38
Class C Shares 13.06 12.05 12.34 +5.83 +8.38
Class D Shares 13.14 12.11 12.37 +6.22 +8.51
Class A Shares--Total Return +7.59(1) +9.26(2)
Class B Shares--Total Return +6.66(3) +8.99(4)
Class C Shares--Total Return +7.49(5) +9.00(6)
Class D Shares--Total Return +8.05(7) +9.23(8)
<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 $0.465 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.091 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.366 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.068 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.186 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.068 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.205 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.081 per share ordinary
income dividends.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Telecommunications 100,000 ++Telecom Argentina STET S.A.
(ADR) (c) $ 3,770,294 $ 4,937,500 1.0%
200,000 Telefonica de Argentina S.A.
(ADR) (c) 4,140,594 5,350,000 1.1
------------ ------------ ------
7,910,888 10,287,500 2.1
Utilities--Electric 6,600 ++Central Costanera S.A. (ADR)
(c) 158,400 188,100 0.1
Total Common Stocks in Argentina 8,069,288 10,475,600 2.2
Australia Utilities--Gas 2,000,000 The Australian Gas Light Co. 5,280,752 6,186,840 1.3
Total Common Stocks in Australia 5,280,752 6,186,840 1.3
<PAGE>
Austria Utilities--Gas 34,850 Energie--Versorgung
Niederoesterreich AG (EVN) 3,050,015 4,912,404 1.0
Total Common Stocks in Austria 3,050,015 4,912,404 1.0
Brazil Utilities--Electric 151,840 ++Companhia Energetica de Minas
Gerais (CEMIG) (ADR) (b)(c) 3,840,000 3,473,340 0.7
Total Common Stocks in Brazil 3,840,000 3,473,340 0.7
Canada Telecommunications 280,000 BC Telecom, Inc. 5,240,465 4,832,347 1.0
Utilities--Electric 458,600 Nova Scotia Power Co. 4,322,473 3,978,285 0.8
Utilities--Gas 504,400 Transcanada Pipeline Co. Ltd.
(ADR) (c) 7,590,812 6,683,300 1.4
400,000 Westcoast Energy Inc. 6,901,727 6,050,000 1.3
------------ ------------ ------
14,492,539 12,733,300 2.7
Total Common Stocks in Canada 24,055,477 21,543,932 4.5
Chile Telecommunications 63,000 Compania de Telefonos de Chile
S.A. (ADR) (c) 4,489,995 5,575,500 1.1
Utilities--Electric 65,000 Chilgener S.A. (ADR) (c) 1,495,000 1,998,750 0.4
156,000 ++Distribuidora Chilectra Metro-
politana S.A. (ADR) (c) 4,249,464 8,190,000 1.7
28,000 Enersis S.A. (ADR) (c) 544,224 808,500 0.2
------------ ------------ ------
6,288,688 10,997,250 2.3
Total Common Stocks in Chile 10,778,683 16,572,750 3.4
Denmark Telecommunications 331,000 Tele Danmark A/S (ADR) (c) 7,787,106 9,433,500 2.0
Total Common Stocks in Denmark 7,787,106 9,433,500 2.0
France Utilities--Water 91,988 Generale des Eaux 9,894,031 10,206,456 2.1
40,000 Lyonnaise des Eaux-Dumez 3,989,365 4,099,254 0.8
Total Common Stocks in France 13,883,396 14,305,710 2.9
<PAGE>
Germany Utilities--Electric 20,000 VEBA AG 6,526,985 7,616,955 1.6
Total Common Stocks in Germany 6,526,985 7,616,955 1.6
Hong Kong Telecommunications 4,040,000 Hong Kong Telecommunications PLC 7,065,308 8,539,846 1.8
Utilities--Electric 2,504,700 China Light & Power Co., Ltd. 15,974,998 13,697,679 2.8
1,552,000 Hong Kong Electric Holdings, Ltd. 3,897,526 5,517,919 1.1
------------ ------------ ------
19,872,524 19,215,598 3.9
Utilities--Gas 3,152,160 The Hong Kong & China Gas
Co., Ltd. 4,674,416 5,114,497 1.1
218,900 The Hong Kong & China Gas Co.,
Ltd. (Warrants)(a) 0 38,772 0.0
------------ ------------ ------
4,674,416 5,153,269 1.1
Total Common Stocks in Hong Kong 31,612,248 32,908,713 6.8
India Utilities--Electric 49,500 CESC Ltd. (Units) 2,640,330 1,089,000 0.2
Total Common Stocks in India 2,640,330 1,089,000 0.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Indonesia Telecommunications 5,500 PT Indonesian Satellite Corp.
(Indosat) (ADR) (c) $ 176,275 $ 217,250 0.0%
Total Common Stocks in Indonesia 176,275 217,250 0.0
Italy Telecommunications 3,091,700 Societa Finanziara Telefonica
S.p.A. (STET) 5,780,442 7,114,316 1.5
5,000,000 Telecom Italia S.p.A 7,383,795 13,157,895 2.7
------------ ------------ ------
13,164,237 20,272,2l1 4.2
Utilities--Gas 1,786,300 Italgas Torino 5,169,953 4,804,644 1.0
Total Common Stocks in Italy 18,334,190 25,076,855 5.2
<PAGE>
Korea Utilities--Electric 199,200 Korea Electric Power Corp. (KEPCO)
(ADR) (c) 4,008,900 4,457,100 0.9
Total Common Stocks in Korea 4,008,900 4,457,100 0.9
Malaysia Telecommunications 1,035,000 Telekom Malaysia BHD 7,499,205 7,938,920 1.6
Total Common Stocks in Malaysia 7,499,205 7,938,920 1.6
Mexico Telecommunications 140,000 Telefonos de Mexico, S.A. de C.V.
(ADR) (c) 7,377,170 3,937,500 0.8
Total Common Stocks in Mexico 7,377,170 3,937,500 0.8
New Telecommunications 146,500 Telecom Corporation of New
Zealand Zealand Ltd. (ADR) (c) 5,402,696 9,412,625 2.0
Total Common Stocks in New Zealand 5,402,696 9,412,625 2.0
Philippines Telecommunications 100,000 Philippine Long Distance Telephone
Co. (ADR) (c) 4,311,241 7,187,500 1.5
Utilities--Electric 57,000 Manila Electric Co. (MERALCO) 'B' 497,246 496,809 0.1
Total Common Stocks in the
Philippines 4,808,487 7,684,309 1.6
Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 7,075,519 1.5
Utilities--Electric 154,800 Empresa Nacional de Electricidad
S.A. (ADR) (c) 5,123,952 7,469,100 1.5
92,000 HidroElectrica Del Cantabrico S.A. 3,107,921 2,757,893 0.6
808,500 Iberdrola I S.A. 4,998,321 5,673,916 1.2
------------ ------------ ------
13,230,194 15,900,909 3.3
Total Common Stocks in Spain 19,394,258 22,976,428 4.8
Thailand Telecommunications 15,000 ++TelecomAsia Corporation Public
Co., Ltd. PLC(ADR) (c) 328,050 547,500 0.1
Utilities--Electric 332,000 Electricity Generating Company of
Thailand (EGCOMP) 296,433 1,042,967 0.2
<PAGE>
Total Common Stocks in Thailand 624,483 1,590,467 0.3
United Telecommunications 771,000 British Telecommunications PLC 5,385,185 4,829,140 1.0
Kingdom 180,000 Vodafone Group PLC (ADR) (c) 5,355,931 6,052,500 1.3
------------ ------------ ------
10,741,116 10,881,640 2.3
Utilities--Electric 445,000 Powergen PLC 3,253,482 3,546,763 0.7
Total Common Stocks in the
United Kingdom 13,994,598 14,428,403 3.0
United Telecommunications 201,800 Ameritech Corp. 7,640,760 8,954,875 1.9
States 138,700 Bell Atlantic Corp. 7,358,558 7,732,525 1.6
149,400 BellSouth Corp. 8,454,788 9,169,425 1.9
120,000 Frontier Corp. 2,437,200 2,730,000 0.6
235,700 GTE Corp. 8,322,438 7,866,488 1.6
147,700 NYNEX Corp. 6,204,823 6,166,475 1.3
212,100 Pacific Telesis Group 5,689,548 5,673,675 1.2
197,900 SBC Communications, Inc. 6,889,718 8,905,500 1.8
217,900 U S West, Inc. 10,138,272 8,988,375 1.9
------------ ------------ ------
63,136,105 66,187,338 13.8
Utilities--Electric 289,500 Allegheny Power System, Inc. 7,707,195 7,201,313 1.5
207,200 Boston Edison Co. 5,530,724 5,361,300 1.1
184,000 Central & SouthWest Corp. 5,218,349 4,738,000 1.0
371,962 CINergy Corp. 8,749,712 9,903,488 2.1
218,200 Consolidated Edison Co. of
New York 6,893,524 6,518,725 1.4
138,900 Detroit Edison Co. 4,670,083 4,184,363 0.9
110,250 Dominion Resources, Inc. 4,427,302 4,093,031 0.8
215,000 Duke Power Co. 8,718,203 8,976,250 1.9
324,300 General Public Utilities Corp. 9,600,670 9,729,000 2.0
234,100 Houston Industries, Inc. 11,139,344 10,095,563 2.1
244,800 NIPSCO Industries, Inc. 6,616,371 8,445,600 1.8
221,000 New York State Electric & Gas
Corp. 7,952,312 5,138,250 1.1
185,700 Northeast Utilities Co. 4,974,996 4,433,588 0.9
295,500 PECO Energy Co. 8,689,805 8,310,938 1.7
323,000 PacifiCorp 6,465,176 6,379,250 1.3
192,000 Public Service Co. of Colorado 5,832,890 6,288,000 1.3
283,000 SCEcorp 6,379,546 4,917,125 1.0
381,200 Southern Co. 6,665,086 8,434,050 1.8
177,300 Western Resources Co. 5,664,717 5,584,950 1.2
------------ ------------ ------
131,896,005 128,732,784 26.9
<PAGE>
Utilities--Gas 130,000 The Brooklyn Union Gas Co. 3,371,550 3,282,500 0.7
226,000 The Coastal Corp. 6,038,593 7,090,750 1.5
244,300 NICOR Inc. 5,363,453 6,504,487 1.3
236,000 Questar Corp. 6,554,436 7,080,000 1.5
127,300 Sonat, Inc. 3,309,934 4,184,987 0.9
------------ ------------ ------
24,637,966 28,142,724 5.9
Total Common Stocks in the
United States 219,670,076 223,062,846 46.6
Total Investments in Common
Stocks 418,814,618 449,301,447 93.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Face Value Percent of
COUNTRY Industries Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Australia Telecommunications US$ 7,960,000 ++Telstra Corp., Ltd., 6.50% due
7/31/2003 $ 8,115,578 $ 7,792,840 1.6%
Total Fixed-Income Securities in
Australia 8,115,578 7,792,840 1.6
Korea Telecommunications 2,500,000 Korea Telecom, 7.40% due 12/01/1999 2,499,500 2,541,650 0.5
Total Fixed-Income Securities in
Korea 2,499,500 2,541,650 0.5
United Telecommunications 3,500,000 Bell Cablemedia PLC, 11.95%* due
Kingdom 7/15/2004 2,168,670 2,275,000 0.5
Total Fixed-Income Securities in
the United Kingdom 2,168,670 2,275,000 0.5
United Telecommunications 4,000,000 Rochester Telephone Corp., 9.25%
States due 6/01/2000 4,111,200 4,439,720 0.9
Utilities--Electric 4,000,000 Consumer Power Co., 8.875% due
11/15/1999 4,190,000 4,255,280 0.9
4,000,000 Niagara Mohawk Power Corp., 9.50%
due 6/01/2000 4,197,640 4,397,320 0.9
------------ ------------ ------
8,387,640 8,652,600 1.8
<PAGE>
Total Fixed-Income Securities in
the United States 12,498,840 13,092,320 2.7
Total Investments in Fixed-Income
Securities 25,282,588 25,701,810 5.3
Short-Term Securities
Repurchase Agreement** 6,442,000 HSBC Securities Inc., purchased
on 5/31/95 to yield 6.05% to
6/01/1995 6,442,000 6,442,000 1.3
Total Investments in Short-Term
Securities 6,442,000 6,442,000 1.3
Total Investments $450,539,206 481,445,257 100.0
============
Other Assets Less Liabilities 65,055 --
------------ ------
Net Assets $481,510,312 100.0%
============ ======
<FN>
*Represents the yield to maturity.
**Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
(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.
(b)Non-income producing security.
(c)American Depositary Receipts (ADR).
++Restricted securities as to resale. The value of the Fund's
investment in restricted securities was approximately $25,129,000,
representing 5.2% of net assets.
<CAPTION>
<PAGE>
Acquisition Value
Issue Date(s) Cost (Note 1a)
<S> <C> <C> <C>
Central Costanera S.A. (ADR) 12/17/1993 $ 158,400 $ 188,100
Companhia Energetica de Minas Gerais
(CEMIG) (ADR) 9/22/1994 3,840,000 3,473,340
Distribuidora Chilectra Metropolitana
S.A. (ADR) 2/12/1992-12/21/1993 4,249,464 8,190,000
Telecom Argentina STET S.A. (ADR) 3/23/1992-12/22/1993 3,770,294 4,937,500
TelecomAsia Corporation Public Co.,
Ltd. PLC (ADR) 11/15/1993 328,050 547,500
Telstra Corp., Ltd., 6.50% due 7/31/2003 7/26/1993-9/29/1993 8,115,578 7,792,840
Total $20,461,786 $25,129,280
=========== ===========
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of May 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$450,539,206)
(Note 1a) $481,445,257
Cash 232,508
Receivables:
Dividends $ 1,537,098
Interest 534,592
Capital shares sold 398,215 2,469,905
------------
Deferred organization expenses (Note 1f) 22,634
Prepaid registration fees and other assets (Note 1f) 30,745
------------
Total assets 484,201,049
------------
Liabilities: Payables:
Capital shares redeemed 1,791,069
Distributor (Note 2) 289,287
Investment adviser (Note 2) 259,687 2,340,043
------------
Accrued expenses and other liabilities 350,694
------------
Total liabilities 2,690,737
------------
Net Assets: Net assets $481,510,312
============
<PAGE>
Net Assets Class A Shares of Common Stock, $0.10 par value, 100,000,000
Consist of: shares authorized $ 392,848
Class B Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 3,267,914
Class C Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 12,995
Class D Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 10,771
Paid-in capital in excess of par 439,391,933
Undistributed investment income--net 3,161,451
Undistributed realized capital gains on investments and foreign
currency transactions--net (Note 6) 4,347,663
Unrealized appreciation on investments and foreign currency
transactions--net 30,924,737
------------
Net assets . $481,510,312
============
Net Asset Class A--Based on net assets of $51,496,956 and 3,928,481
Value: shares outstanding $ 13.11
============
Class B--Based on net assets of $426,901,470 and 32,679,142
shares outstanding $ 13.06
============
Class C--Based on net assets of $1,697,070 and 129,951
shares outstanding $ 13.06
============
Class D--Based on net assets of $1,414,816 and 107,711
shares outstanding $ 13.14
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended May 31, 1995
<S> <S> <C> <C>
Investment Dividends (net of $456,503 foreign withholding tax) $ 9,884,839
Income Interest and discount earned 1,648,727
(Notes 1d & 1e): ------------
Total income 11,533,566
------------
<PAGE>
Expenses: Distribution fees--Class B (Note 2) $ 1,615,714
Investment advisory fees (Note 2) 1,457,040
Transfer agent fees--Class B (Note 2) 395,091
Printing and shareholder reports 121,269
Custodian fees 96,667
Professional fees 70,493
Accounting services (Note 2) 58,715
Registration fees (Note 1f) 48,857
Transfer agent fees--Class A (Note 2) 40,445
Amortization of organization expenses (Note 1f) 10,993
Directors' fees and expenses 10,382
Distribution fees--Class C (Note 2) 5,142
Account maintenance fees--Class D (Note 2) 1,604
Transfer agent fees--Class C (Note 2) 1,173
Transfer agent fees--Class D (Note 2) 995
Pricing fees 611
Other 16,751
------------
Total expenses 3,951,942
------------
Investment income--net 7,581,624
------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 5,572,903
(Loss) on Foreign currency transactions--net (8,524) 5,564,379
Investments & ------------
Foreign Change in unrealized appreciation/depreciation on:
Currency Investments--net 32,589,801
Transactions Foreign currency transactions--net 15,361 32,605,162
- --Net (Notes ------------
1b, 1c, Net realized and unrealized gain on investments and foreign
1e & 3): currency transactions 38,169,541
------------
Net Increase in Net Assets Resulting from Operations $ 45,751,165
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: May 31, 1995 Nov. 30, 1994
<S> <S> <C> <C>
Operations: Investment income-- net $ 7,581,624 $ 18,547,757
Realized gain (loss) on investments and foreign currency
transactions--net 5,564,379 (1,270,044)
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 32,605,162 (52,883,601)
------------ ------------
Net increase (decrease) in net assets resulting
from operations 45,751,165 (35,605,888)
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distributions to Class A (957,758) (2,661,239)
Shareholders Class B (6,166,982) (16,205,857)
(Note 1g): Class C (15,111) --
Class D (13,666) --
Realized gain on investments--net:
Class A -- (219,759)
Class B -- (1,627,301)
Class C -- --
Class D -- --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (7,153,517) (20,714,156)
------------ ------------
Capital Share Net decrease in net assets derived from capital share
Transactions transactions (73,614,502) (105,325,044)
(Note 4): ------------ ------------
Net Assets: Total decrease in net assets (35,016,854) (161,645,088)
Beginning of period 516,527,166 678,172,254
------------ ------------
End of period* $481,510,312 $516,527,166
============ ============
<FN>
*Undistributed investment income--net $ 3,161,451 $ 2,733,344
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
For the
The following per share data and ratios For the Period
have been derived from information provided Six Months Dec. 28,
in the financial statements. Ended For the Year 1990++ to
May 31, Ended November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.08 $ 13.22 $ 11.23 $ 10.67 $ 10.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .25 .94 .40 .47 .49
Realized and unrealized gain (loss) on
investments and foreign currency trans-
actions--net 1.00 (1.57) 2.01 .57 .56
-------- -------- -------- -------- --------
Total from investment operations 1.25 (.63) 2.41 1.04 1.05
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.22) (.47) (.41) (.48) (.38)
Realized gain on investments--net -- (.04) (.01) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.22) (.51) (.42) (.48) (.38)
-------- -------- -------- -------- --------
Net asset value, end of period $ 13.11 $ 12.08 $ 13.22 $ 11.23 $ 10.67
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 10.50%+++ (4.89%) 21.80% 10.05% 10.83%+++
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses .93%* .86% .82% 1.01% 1.28%*
Net Assets: ======== ======== ======== ======== ========
Investment income--net 3.82%* 3.58% 3.57% 4.47% 5.57%*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 51,497 $ 56,659 $ 81,718 $ 29,772 $ 20,579
Data: ======== ======== ======== ======== ========
Portfolio turnover .82% 17.02% 8.92% 30.91% 20.51%
======== ======== ======== ======== ========
<PAGE>
<CAPTION>
Class B
For the
The following per share data and ratios For the Period
have been derived from information provided Six Months Dec. 28,
in the financial statements. Ended For the Year 1990++ to
May 31, Ended November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.04 $ 13.17 $ 11.20 $ 10.65 $ 10.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .19 .74 .33 .39 .40
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net 1.00 (1.46) 1.98 .57 .58
-------- -------- -------- -------- --------
Total from investment operations 1.19 (.72) 2.31 .96 .98
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.17) (.37) (.33) (.41) (.33)
Realized gain on investments--net -- (.04) (.01) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.17) (.41) (.34) (.41) (.33)
-------- -------- -------- -------- --------
Net asset value, end of period $ 13.06 $ 12.04 $ 13.17 $ 11.20 $ 10.65
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 10.01%+++ (5.60%) 20.86% 9.20% 10.05%+++
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding distribution fees .96%* .88% .84% 1.02% 1.29%*
Net Assets: ======== ======== ======== ======== ========
Expenses 1.71%* 1.63% 1.59% 1.77% 2.04%*
======== ======== ======== ======== ========
Investment income--net 3.04%* 2.82% 2.81% 3.65% 4.78%*
======== ======== ======== ======== ========
<PAGE>
Supplemental Net assets, end of period (in
Data: thousands) $426,901 $459,185 $596,455 $200,396 $ 90,966
======== ======== ======== ======== ========
Portfolio turnover .82% 17.02% 8.92% 30.91% 20.51%
======== ======== ======== ======== ========
<CAPTION>
Class C Class D
For the For the For the For the
The following per share data and ratios Six Period Six Period
have been derived from information Months Oct. 21, Months Oct. 21,
provided in the financial statements. Ended 1994++ to Ended 1994++ to
May 31, Nov. 30, May 31, Nov. 30,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.05 $ 12.34 $ 12.09 $ 12.37
Operating -------- -------- -------- --------
Performance: Investment income--net .21 .01 .27 .02
Realized and unrealized gain (loss) on invest-
ments and foreign currency transactions--net .99 (.30) .99 (.30)
-------- -------- -------- --------
Total from investment operations 1.20 (.29) 1.26 (.28)
-------- -------- -------- --------
Less dividends from investment income (.19) -- (.21) --
-------- -------- -------- --------
Net asset value, end of period $ 13.06 $ 12.05 $ 13.14 $ 12.09
======== ======== ======== ========
Total Investment Based on net asset value per share 10.07%+++ (2.35%)+++ 10.55%+++ (2.26%)+++
Return:** ======== ======== ======== ========
Ratios to Expenses, excluding account maintenance
Average and distribution fees .96%* .80%* .93%* .83%*
Net Assets: ======== ======== ======== ========
Expenses 1.76%* 1.60%* 1.18%* 1.08%*
======== ======== ======== ========
Investment income--net 2.96%* 3.01%* 3.43%* 3.25%*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 1,697 $ 445 $ 1,415 $ 239
Data: ======== ======== ======== ========
Portfolio turnover .82% 17.02% .82% 17.02%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Utility Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. These unaudited financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature.
The Fund offers four classes of shares under the Merrill Lynch
Select Pricing SM System. Shares of Class A and Class D are sold with
a front-end sales charge. Shares of Class B and Class C may be
subject to a contingent deferred sales charge. All classes of shares
have identical voting, dividend, liquidation and other rights and
the same terms and conditions, except that Class B, Class C and
Class D Shares bear certain expenses related to the account
maintenance of such shares, and Class B and Class C Shares also bear
certain expenses related to the distribution of such shares. Each
class has exclusive voting rights with respect to matters relating
to its account maintenance and distribution expenditures. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of securities--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of Directors as
the primary market. Securities which are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written are valued
at the last sale price in the case of exchange-traded options or, in
the case of options traded in the over-the-counter market, the last
asked price. Options purchased are valued at the last sale price in
the case of exchange-traded or, in the case of options traded in the
over-the-counter market, the last bid price. Short-term securities
are valued at amortized cost, which approximates market value. Other
investments, including futures contracts and related options, are
stated at market value. Securities and assets for which market value
quotations are not available are valued at their fair value as
determined in good faith by or under the direction of the Fund's
Board of Directors.
<PAGE>
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(c) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the equity, debt and currency
markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Options--The Fund is authorized to write and purchase call and put
options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written. When a security is purchased or sold through an exercise of
an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on
operations is recorded from the date the Fund enters into such
contracts. Premium or discount is amortized over the life of the
contracts.
* Foreign currency options and futures--The Fund may also purchase
or sell listed or over-the-counter foreign currency options, foreign
currency futures and related options on foreign currency futures as
a short or long hedge against possible variations in foreign
exchange rates. Such transactions may be effected with respect to
hedges on non-US dollar denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated
to be purchased by the Fund.
<PAGE>
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
its shareholders. Therefore, no Federal income tax provision is
required. Under the applicable foreign tax law, a withholding tax
may be imposed on interest, dividends and capital gains at various
rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
discount) is recognized on the accrual basis. Dividend income is
recorded on the ex-dividend date, except that if the ex-dividend
date has passed, certain dividends from foreign securities are
recorded as soon as the Fund is informed of the ex-dividend date.
Realized gains and losses on security transactions are determined on
the identified cost basis.
(f) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense over a five-
year period. Prepaid registration fees are charged to expense as the
related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM"). The general partner
of MLAM is Princeton Services, Inc. ("PSI"), an indirect wholly-
owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is
the limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
MLAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operation of the Fund. For such
services, the Fund pays a monthly fee of 0.60%, on an annual basis,
of the average daily value of the Fund's net assets. The most
restrictive annual expense limitation requires that the Investment
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed 2.5% of the Fund's
first $30 million of average daily net assets, 2.0% of the next $70
million of average daily net assets and 1.5% of the average daily
net assets in excess thereof. MLAM's obligation to reimburse the
Fund is limited to the amount of the advisory fee. No fee payment
will be made to the Investment Adviser during any fiscal year which
will cause such expenses to exceed the most restrictive expense
limitation applicable at the time of such payment.
<PAGE>
Pursuant to the distribution plans ("the Distribution Plans")
adopted by the Fund in accordance with Rule 12b-1 under the
Investment Company Act of 1940, the Fund pays the Distributor
ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares as follows:
Account
Maintenance Distribution
Fee Fee
Class B 0.25% 0.50%
Class C 0.25% 0.55%
Class D 0.25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the six months ended May 31, 1995, MLFD earned underwriting
discounts and MLPF&S earned dealer concessions on sales of the
Fund's Class A and Class D Shares as follows:
MLFD MLPF&S
Class A $ 372 $ 4,765
Class D $ 1,723 $12,840
For the six months ended May 31, 1995, MLPF&S received contingent
deferred sales charges of $740,179 and $295, relating to
transactions in Class B Shares and Class C Shares, respectively.
In addition, MLPF&S received $6,212 in commissions on the execution
of portfolio security transactions for the Fund for the six months
ended May 31, 1995.
<PAGE>
For the six months ended May 31, 1995, the Fund paid Merrill Lynch
Security Pricing Service, an affiliate of MLPF&S, $312 for security
price quotations to compute the net asset value of the Fund.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLAM, PSI, MLPF&S, MLFDS, MLFD, and/or ML & Co.
NOTES TO FINANCIAL STATEMENTS (concluded)
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended May 31, 1995 were $3,939,224 and
$68,008,708, respectively.
Net realized and unrealized gains (losses) as of May 31, 1995 were
as follows:
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $ 5,572,903 $ 30,906,051
Foreign currency transactions (8,524) 18,686
----------- --------------
Total $ 5,564,379 $ 30,924,737
=========== ==============
As of May 31, 1995 net unrealized appreciation for Federal income
tax purposes aggregated $30,906,051, of which $53,152,930 related to
appreciated securities and $22,246,879 related to depreciated
securities. The aggregate cost of investments at May 31, 1995 for
Federal income tax purposes was $450,539,206.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $73,614,502 and $105,325,044 for the six months ended May 31,
1995 and the year ended November 30, 1994, respectively.
Transactions in capital shares for each class were as follows:
<PAGE>
Class A Shares for the Six Months Dollar
Ended May 31, 1995 Shares Amount
Shares sold 98,934 $ 1,198,665
Shares issued to shareholders in
reinvestment of dividends 58,834 703,501
----------- -------------
Total issued 157,768 1,902,166
Shares redeemed (918,755) (11,171,608)
----------- -------------
Net decrease (760,987) $ (9,269,442)
=========== =============
Class A Shares for the Year Dollar
Ended November 30, 1994 Shares Amount
Shares sold 1,418,075 $ 18,617,407
Shares issued to shareholders in
reinvestment of dividends &
distributions 175,820 2,216,368
----------- -------------
Total issued 1,593,895 20,833,775
Shares redeemed (3,085,387) (39,503,880)
----------- -------------
Net decrease (1,491,492) $ (18,670,105)
=========== =============
Class B Shares for the Six Months Dollar
Ended May 31, 1995 Shares Amount
Shares sold 921,773 $ 11,098,704
Shares issued to shareholders in
reinvestment of dividends 401,990 4,793,957
----------- -------------
Total issued 1,323,763 15,892,661
Automatic conversion of shares (1,992) (24,740)
Shares redeemed (6,782,832) (82,351,609)
----------- -------------
Net decrease (5,461,061) $ (66,483,688)
=========== =============
<PAGE>
Class B Shares for the Year Dollar
Ended November 30, 1994 Shares Amount
Shares sold 8,594,406 $ 112,616,998
Shares issued to shareholders in
reinvestment of dividends &
distributions 1,125,104 14,149,052
----------- -------------
Total issued 9,719,510 126,766,050
Shares redeemed (16,864,631) (214,110,349)
----------- -------------
Net decrease (7,145,121) $ (87,344,299)
=========== =============
Class C Shares for the Six Months Dollar
Ended May 31, 1995 Shares Amount
Shares sold 209,087 $ 2,523,517
Shares issued to shareholders in
reinvestment of dividends 1,178 14,067
----------- -------------
Total issued 210,265 2,537,584
Shares redeemed (117,240) (1,422,338)
----------- -------------
Net increase 93,025 $ 1,115,246
=========== =============
Class C Shares for the Period
October 21, 1994++ to Dollar
November 30, 1994 Shares Amount
Shares sold 36,927 $ 446,777
Shares redeemed (1) (13)
----------- -------------
Net increase 36,926 $ 446,764
=========== =============
[FN]
++Commencement of Operations.
Class D Shares for the Six Months Dollar
Ended May 31, 1995 Shares Amount
Shares sold 1,662,302 $ 20,247,718
Automatic conversion of shares 1,983 24,740
Shares issued to shareholders in
reinvestment of dividends 566 6,563
----------- -------------
Total issued 1,664,851 20,279,021
Shares redeemed (1,576,881) (19,255,639)
----------- -------------
Net increase 87,970 $ 1,023,382
=========== =============
<PAGE>
Class D Shares for the Period Dollar
Oct. 21, 1994++ to Nov. 30, 1994 Shares Amount
Shares sold 35,477 $ 437,644
Shares redeemed (15,736) (195,048)
----------- -------------
Net increase 19,741 $ 242,596
=========== =============
[FN]
++Commencement of Operations.
5. Commitments:
At May 31, 1995, the Fund had entered into forward foreign exchange
contracts under which it agreed to purchase and sell various
currencies with approximate values of $1,762,775.
6. Capital Loss Carryforward:
At November 30, 1994, the Fund had a capital loss carryforward of
approximately $567,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable
gains.
