MERRILL LYNCH
GLOBAL UTILITY
FUND, INC.
FUND LOGO
Quarterly Report
August 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
<PAGE>
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
DEAR SHAREHOLDER
During the August quarter, US economic indicators continued to
suggest that economic growth is moderate and that the rate of
inflation remains low. Gross domestic product (GDP) growth for the
three months ended June 30 was revised to show that the economy
expanded at a 1.1% pace, rather than the 0.5% rate that was
originally reported. However, although the employment report for
August exceeded consensus expectations, most of the new jobs created
were in the service sector, reflecting the ongoing sluggishness in
manufacturing. In addition, total hours worked and hourly wages
declined in August. Other lackluster economic indicators included
disappointing durable goods orders in July and continued poor retail
sales results.
After gaining ground in recent weeks, the US dollar has strengthened
relative to the yen and the Deutschemark. Improving interest rate
differentials favoring the US currency, combined with coordinated
central bank intervention and more positive investor sentiment, have
helped to bolster the dollar in foreign exchange markets. Other
factors that appear to be improving the US dollar's outlook in the
near term are a pick-up in capital flows to the United States and
the prospect of increased capital outflows from Japan. However, it
remains to be seen if the US dollar's strengthening trend can
continue without significant improvements in the US budget and trade
deficits.
<PAGE>
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion would further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
Portfolio Matters
During the quarter ended August 31, 1995, the Fund's performance
benefited from its geographic diversification. Of the 22 individual
markets tracked in the Financial Times-Actuaries World Utility
Index, the Fund had 73% of its net assets in the Index's ten best-
performing markets and only 11% in the ten worst-performing markets.
Fund performance was also aided by reducing our exposure to the Hong
Kong market from 6.8% of net assets as of May 31, 1995 to 2.6% as of
August 31, 1995.
During the August quarter, we added one new position to Merrill
Lynch Global Utility Fund, Inc.'s portfolio, Portugal Telecom, S.A.,
which is the principal telecommunications provider in Portugal with
over 3.4 million main lines in service. The company is a full-
service telecommunications provider, offering local and domestic
long distance throughout Portugal as well as international telephone
services, and offers a wide range of other services, including
cellular telephone and paging, and cable television.
As a result of a spin-off from Telecom Italia S.p.A., we received
shares of Telecom Italia Mobile S.p.A. The spin-off provided the
wireless operator with the greatest possible financial and
operational flexibility. Telecom Italia Mobile's operations include
a full range of paging, analog and GSM cellular systems. It is now
the second-largest publicly owned wireless operator in Europe, after
Vodafone Group PLC of the United Kingdom.
Eliminations of holdings during the August quarter consisted of
Pacific Telesis Group, Hong Kong Telecommunications PLC and Niagara
Mohawk Power Corp. bonds. We determined that the companies'
fundamental outlooks were deteriorating and current market values
did not reflect possible negative developments. Finally, we trimmed
holdings in eight stocks whose share prices had appreciated rapidly.
Investment Outlook
We expect several foreign utility companies to have share offerings
in the upcoming months. The majority of the offerings is expected to
be in the telecommunications sector as governments continue to
divest their holdings. While this may create some long-term
investment opportunities, in the near term there may be a supply of
utility stock that is greater than current investor demand. In the
United States, the outcome of pending legislation is still a
dominant theme in the telecommunications sector. Specifically,
investors are attempting to gauge the terms under which the seven
Regional Bell Holding Companies will be allowed to enter the long-
distance business.
<PAGE>
Merger and acquisition activity picked up in both the United States
and the United Kingdom electric utility sectors. In the United
States, the principal force behind consolidation is the need for
utilities to cut costs to gain a more favorable position in an
environment of increasing competition. In the United Kingdom, the
favorable regulatory structure coupled with substantial positive
cash flows and strong balance sheets make UK electric utilities
attractive relative to other utility companies, even in the United
States.
Mergers in the utility sector are not a new phenomenon, but the
recent flurry of activity has sparked investor interest in the
group. However, the proposed acquisition of a regulated US utility
is not easy to complete since multiple regulators and communities
are involved in the process. Thus, utility mergers or acquisitions
often take place over an extended period, and utility share prices
generally reflect the length of time and arduous process it takes to
complete transactions. These factors combine to make friendly as
opposed to unfriendly proposals more likely to be successful.
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
(Walter D. Rogers)
Walter D. Rogers
Vice President and Portfolio Manager
<PAGE>
September 21, 1995
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 also 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 August 31, 1995
and for Class C and Class D Shares for the since inception and 3-
month periods ended August 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 6/30/95 +10.34% +5.93%
Inception (12/28/90) through 6/30/95 +10.22 +9.23
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/95 +9.40% +5.40%
Inception (12/28/90) through 6/30/95 +9.36 +9.36
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate
Total Return
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through 6/30/95 +6.66% +5.66%
[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 6/30/95 +7.23% +2.94%
[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--8/31/95 11.83 13.10 -- 0.238 +12.83
------ ------
Total $0.039 Total $2.119
Cumulative total return as of 8/31/95: +57.76%**
<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--8/31/95 11.81 13.06 -- 0.189 +12.24
------ ------
Total $0.039 Total $1.731
Cumulative total return as of 8/31/95: +52.23%**
<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
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
8/31/95 5/31/95 8/31/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
Class A Shares $13.10 $13.11 $12.92 +1.39% -0.08%
Class B Shares 13.06 13.06 12.87 +1.48 0.00
Class C Shares 13.05 13.06 12.34 +5.75 -0.08
Class D Shares 13.13 13.14 12.37 +6.14 -0.08
Class A Shares--Total Return +5.48(1) +1.05(2)
Class B Shares--Total Return +4.73(3) +0.93(4)
Class C Shares--Total Return +8.42(5) +0.87(6)
Class D Shares--Total Return +9.10(7) +0.97(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 $0.491 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.147 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.391 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.121 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.309 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.123 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.343 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.138 per share ordinary
income dividends.
</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 100,000 Telecom Argentina STET S.A.
(ADR)(b) $ 3,770,294 $ 4,350,000 1.0%
200,000 Telefonica de Argentina S.A.
(ADR)(b) 4,140,594 4,950,000 1.1
------------ ------------ ------
7,910,888 9,300,000 2.1
Utilities--Electric 6,600 Central Costanera S.A. (ADR)(b) 158,400 171,600 0.0
Total Common Stocks in Argentina 8,069,288 9,471,600 2.1
Australia Utilities--Gas 2,000,000 Australian Gas & Light Co., Ltd. 5,280,752 6,737,920 1.5
Total Common Stocks in Australia 5,280,752 6,737,920 1.5
<PAGE>
Austria Utilities--Gas 34,850 Energie--Versorgung
Niederoesterreich AG (EVN) 3,050,015 4,556,372 1.0
Total Common Stocks in Austria 3,050,015 4,556,372 1.0
Brazil Utilities--Electric 151,840 Companhia Energetica de Minas
Gerais (CEMIG)(ADR)(b) 3,840,000 3,397,420 0.8
Total Common Stocks in Brazil 3,840,000 3,397,420 0.8
Canada Telecommunications 280,000 BC Telecom, Inc. 5,240,465 5,002,233 1.1
Utilities--Electric 458,600 Nova Scotia Power Co. 4,322,473 3,925,785 0.9
Utilities--Gas 504,400 Transcanada Pipeline Co.
Ltd. (ADR)(b) 7,590,812 6,872,450 1.6
400,000 Westcoast Energy Inc. 6,901,727 6,100,000 1.4
------------ ------------ ------
14,492,539 12,972,450 3.0
Total Common Stocks in Canada 24,055,477 21,900,468 5.0
Chile Telecommunications 63,000 Compania de Telefonos de
Chile S.A. (ADR)(b) 4,489,995 4,599,000 1.0
Utilities--Electric 65,000 Chilgener S.A. (ADR)(b) 1,495,000 1,462,500 0.3
156,000 Distribuidora Chilectra
Metropolitana S.A. (ADR)(b) 4,249,464 7,254,000 1.6
28,000 Enersis S.A. (ADR)(b) 544,224 710,500 0.2
------------ ------------ ------
6,288,688 9,427,000 2.1
Total Common Stocks in Chile 10,778,683 14,026,000 3.1
Denmark Telecommunications 331,000 Tele Danmark A/S (ADR)(b) 7,787,106 8,812,875 2.0
Total Common Stocks in Denmark 7,787,106 8,812,875 2.0
France Utilities--Water 91,988 Generale des Eaux 9,894,031 9,740,550 2.2
40,000 Lyonnaise des Eaux-Dumez 3,989,365 3,846,123 0.9
Total Common Stocks in France 13,883,396 13,586,673 3.1
<PAGE>
Germany Utilities--Electric 200,000 VEBA AG 6,526,985 7,655,803 1.7
Total Common Stocks in Germany 6,526,985 7,655,803 1.7
Hong Kong Utilities--Electric 902,700 China Light & Power Co., Ltd. 6,285,801 4,431,574 1.0
1,552,000 Hong Kong Electric Holdings, Ltd. 3,897,526 5,383,528 1.2
------------ ------------ ------
10,183,327 9,815,102 2.2
Utilities--Gas 1,000,000 The Hong Kong & China Gas Co., Ltd. 1,627,410 1,576,126 0.4
218,900 The Hong Kong & China Gas Co., Ltd.
(Warrants)(a) -- 17,816 0.0
------------ ------------ ------
1,627,410 1,593,942 0.4
Total Common Stocks in Hong Kong 11,810,737 11,409,044 2.6
India Utilities--Electric 49,500 CESC Ltd. (Units) 2,640,330 990,000 0.2
Total Common Stocks in India 2,640,330 990,000 0.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Indonesia Telecommunications 5,500 PT Indonesian Satellite Corp.
(Indosat) (ADR)(b) $ 176,275 $ 193,188 0.1%
Total Common Stocks in Indonesia 176,275 193,188 0.1
Italy Telecommunications 3,091,700 Societa Finanziara Telefonica
S.p.A. (STET) 5,780,442 7,553,261 1.7
5,000,000 Telecom Italia Mobile S.p.A. -- 7,369,231 1.7
5,000,000 Telecom Italia S.p.A 7,383,795 8,030,769 1.8
------------ ------------ ------
13,164,237 22,953,261 5.2
Utilities--Gas 1,786,300 Italgas Torino 5,169,953 5,281,952 1.2
Total Common Stocks in Italy 18,334,190 28,235,213 6.4
<PAGE>
Korea Utilities--Electric 199,200 Korea Electric Power Corp.
(KEPCO) (ADR)(b) 4,008,900 4,556,700 1.0
Total Common Stocks in Korea 4,008,900 4,556,700 1.0
Malaysia Telecommunications 1,035,000 Telekom Malaysia BHD 7,499,205 7,260,974 1.6
Total Common Stocks in Malaysia 7,499,205 7,260,974 1.6
Mexico Telecommunications 140,000 Telefonos de Mexico, S.A.
de C.V. (ADR)(b) 7,377,170 4,585,000 1.0
Total Common Stocks in Mexico 7,377,170 4,585,000 1.0
New Zealand Telecommunications 100,000 Telecom Corporation of
New Zealand Ltd. (ADR)(b) 3,935,303 6,387,500 1.4
Total Common Stocks in New Zealand 3,935,303 6,387,500 1.4
Philippines Telecommunications 100,000 Philippine Long Distance Telephone
Co. (ADR)(b) 4,311,241 6,287,500 1.4
Utilities--Electric 57,000 Manila Electric Co. (MERALCO) 'B' 497,246 453,885 0.1
Total Common Stocks in the
Philippines 4,808,487 6,741,385 1.5
Portugal Telecommunications 30,900 Portugal Telecom, S.A. (ADR)(b) 578,602 556,200 0.1
Total Common Stocks in Portugal 578,602 556,200 0.1
Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 7,288,040 1.7
Utilities--Electric 154,800 Empresa Nacional de Electricidad
S.A. (ADR)(b) 5,123,952 8,010,900 1.8
92,000 HidroElectrica Del Cantabrico S.A. 3,107,921 2,862,842 0.7
808,500 Iberdrola I S.A. 4,998,321 6,212,284 1.4
------------ ------------ ------
13,230,194 17,086,026 3.9
Total Common Stocks in Spain 19,394,258 24,374,066 5.6
<PAGE>
Thailand Telecommunications 15,000 TelecomAsia Corporation Public Co.,
Ltd. PLC (ADR)(b) 328,050 465,000 0.1
Utilities--Electric 332,000 Electricity Generating Company of
Thailand (EGCOMP) 296,433 1,040,399 0.3
33,200 Electricity Generating Company of
Thailand (EGCOMP) (Rights) -- -- --
Total Common Stocks in Thailand 624,483 1,505,399 0.4
United Telecommunications 771,000 British Telecommunications PLC 5,385,185 4,835,848 1.1
Kingdom 180,000 Vodafone Group PLC (ADR)(b) 5,355,931 7,537,500 1.7
------------ ------------ ------
10,741,116 12,373,348 2.8
Utilities--Electric 445,000 PowerGen PLC 3,253,482 4,036,599 0.9
Total Common Stocks in the
United Kingdom 13,994,598 16,409,947 3.7
United Telecommunications 165,800 Ameritech Corp. 6,514,234 8,497,250 1.9
States 138,700 Bell Atlantic Corp. 7,358,558 8,287,325 1.9
131,400 BellSouth Corp. 7,536,538 9,033,750 2.0
120,000 Frontier Corp. 2,437,200 3,345,000 0.8
235,700 GTE Corp. 8,322,438 8,632,513 2.0
147,700 NYNEX Corp. 6,204,823 6,646,500 1.5
129,900 SBC Communications, Inc. 4,873,568 6,576,188 1.5
217,900 U S West, Inc. 10,138,272 9,478,650 2.1
------------ ------------ ------
53,385,631 60,497,176 13.7
Utilities--Electric 289,500 Allegheny Power System, Inc. 7,707,195 7,056,563 1.6
207,200 Boston Edison Co. 5,530,724 5,309,500 1.2
184,000 Central & SouthWest Corp. 5,218,349 4,508,000 1.0
321,962 CINergy Corp. 7,622,146 8,250,276 1.9
218,200 Consolidated Edison Co. of New York 6,893,524 6,164,150 1.4
138,900 Detroit Edison Co. 4,670,083 4,253,813 1.0
110,250 Dominion Resources, Inc. 4,427,302 3,982,781 0.9
215,000 Duke Power Co. 8,718,203 8,734,375 2.0
282,300 General Public Utilities Corp. 8,552,046 8,080,838 1.8
234,100 Houston Industries, Inc. 11,139,344 9,919,987 2.2
244,800 NIPSCO Industries, Inc. 6,616,371 8,017,200 1.8
221,000 New York State Electric & Gas Corp. 7,952,312 5,331,625 1.2
185,700 Northeast Utilities Co. 4,974,996 4,247,887 1.0
295,500 PECO Energy Co. 8,689,805 7,867,687 1.8
323,000 PacifiCorp 6,465,176 5,854,375 1.3
192,000 Public Service Co. of Colorado 5,832,890 6,216,000 1.4
283,000 SCEcorp 6,379,546 4,704,875 1.1
381,200 Southern Co. 6,665,086 8,052,850 1.8
177,300 Western Resources Co. 5,664,717 5,363,325 1.2
------------ ------------ ------
129,719,815 121,916,107 27.6
<PAGE>
Utilities--Gas 130,000 The Brooklyn Union Gas Co. 3,371,550 3,266,250 0.7
226,000 The Coastal Corp. 6,038,593 7,401,500 1.7
244,300 NICOR Inc. 5,363,453 6,260,187 1.4
236,000 Questar Corp. 6,554,436 7,198,000 1.6
127,300 Sonat, Inc. 3,309,934 4,041,775 0.9
------------ ------------ ------
24,637,966 28,167,712 6.3
Total Common Stocks in the
United States 207,743,412 210,580,995 47.6
Total Investments in Common Stocks 386,197,652 413,930,742 93.5
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Fixed Income Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Australia Telecommuni- US$ 7,960,000 Telstra Corp., Ltd., 6.50% due
cations 7/31/2003 $ 8,115,578 $ 7,681,400 1.7%
Total Fixed-Income Securities in
Australia 8,115,578 7,681,400 1.7
Korea Telecommuni- 2,500,000 Korea Telecom, 7.40% due 12/01/1999 2,499,500 2,537,750 0.6
cations
Total Fixed-Income Securities in
Korea 2,499,500 2,537,750 0.6
United Telecommuni- 3,500,000 Bell Cablemedia PLC, 11.95%* due
Kingdom cations 7/15/2004 2,233,039 2,261,875 0.5
Total Fixed-Income Securities in
the United Kingdom 2,233,039 2,261,875 0.5
<PAGE>
United Telecommuni- 4,000,000 Rochester Telephone Corp., 9.25%
States cations due 6/01/2000 4,111,200 4,424,480 1.0
Utilities--Electric 4,000,000 Consumer Power Co., 8.875% due
11/15/1999 4,190,000 4,242,400 1.0
Total Fixed-Income Securities in
the United States 8,301,200 8,666,880 2.0
Total Investments in Fixed-Income
Securities 21,149,317 21,147,905 4.8
Short-Term Securities
Repurchase 3,199,000 HSBC Securities Inc., purchased
Agreement** on 8/31/1995 to yield 5.77% to
9/01/1995 3,199,000 3,199,000 0.7
Total Investments in Short-Term
Securities 3,199,000 3,199,000 0.7
Total Investments $410,545,969 438,277,647 99.0
============
Other Assets Less Liabilities 4,582,575 1.0
------------ ------
Net Assets $442,860,222 100.0%
============ ======
Net Asset Class A--Based on net assets of $46,407,354 and
Value: 3,541,893 shares outstanding $ 13.10
============
Class B--Based on net assets of $393,471,981 and
30,135,054 shares outstanding $ 13.06
============
Class C--Based on net assets of $1,856,534 and
142,278 shares outstanding $ 13.05
============
Class D--Based on net assets of $1,124,353 and
85,657 shares outstanding $ 13.13
============
<PAGE>
<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)American Depositary Receipts (ADR).
</TABLE>
PORTFOLIO INFORMATION
Worldwide
Investments as of 8/31/95
Top Ten Holdings Percent of
(Equity Investments) Net Assets
Houston Industries, Inc. 2.2%
Generale des Eaux 2.2
U S West, Inc. 2.1
BellSouth Corp. 2.0
Tele Danmark A/S (ADR) 2.0
Duke Power Co. 2.0
GTE Corp. 2.0
Ameritech Corp. 1.9
Bell Atlantic Corp. 1.9
CINergy Corp. 1.9
Additions (Equity Investments)
Electricity Generating Company of Thailand (EGCOMP)
(Rights)
Portugal Telecom, S.A. (ADR)
Telecom Italia Mobile S.p.A.
Deletions (Equity Investments)
Hong Kong Telecommunications PLC
Pacific Telesis Group
