MERRILL LYNCH
GLOBAL UTILITY
FUND, INC.
FUND LOGO
Quarterly Report
February 29, 1996
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, NY 11245
<PAGE>
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Statements and other information herein are as datedand are subject
to change.
Merrill Lynch
Global Utility Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MERRILL LYNCH GLOBAL UTILITY FUND, INC.
Sector
Diversification
As a Percentage of
Equities as of
February 29, 1996
Pie graph depicting the following percentages:
Utilities--Electric 44.5%
Telecommunications 39.9%
Utilities--Gas 12.5%
Utilities--Water 3.1%
Geographical
Diversification
As a Percentage of
Equities as of
February 29, 1996
Pie graph depicting the following percentages:
United States 52.2%
Europe 27.0%
Americas (Ex-US) 10.8%
Asia/Pacific 10.0%
<PAGE>
DEAR SHAREHOLDER
Throughout most of the February quarter, it appeared that the US
economy was losing momentum. Consumer spending was barely growing
and the industrial sector was at a virtual standstill. With
inflationary pressures subdued, the Federal Reserve Board responded
to the slowing economy by continued modest monetary policy easing.
However, late in the quarter a series of economic releases began to
suggest that economic activity would not continue to be as sluggish
as originally expected. A surge in auto sales and factory orders,
rising consumer confidence and strong housing starts led some
investors to believe that economic activity was again accelerating
and further easing by the Federal Reserve Board was unlikely. These
concerns were highlighted shortly after the February quarter's close
with the report of a sharp increase in new jobs in February and a
drop in unemployment. In the weeks ahead, it is likely that
investors will continue to monitor economic data releases closely as
they attempt to gauge the US economy's progress.
The impasse between the Clinton Administration and Congress over the
Federal budget continues. However, both sides have made concessions
since the debate began. It appears that investors are currently
focusing on the progress that has been made rather than on the
differences that remain. Initially, President Clinton proposed
deficits of about $190 billion annually through fiscal year 2002. He
now proposes balanced budgets, as do the Republicans. Furthermore,
even without policy changes, it appears that the US Federal budget
deficit could remain stable at about 2% of gross domestic product
for the rest of the decade. This is far better than is the case for
most Group of Seven industrial nations, and a great improvement over
the last 15 years. Nevertheless, current indications are that a
piecemeal budget accord is the most likely outcome. Although this
may fall short of investors' best expectations, it appears that the
Federal budget debate over the past year has resulted in a trend
toward a more conservative fiscal policy.
<PAGE>
Portfolio Matters
For the quarter ended February 29, 1996, Merrill Lynch Global
Utility Fund, Inc.'s Class A, Class B, Class C and Class D Shares
had total returns of +6.09%, +5.91%, +5.91% and +5.87%,
respectively. For the three-month period ended February 29, 1996,
the total return for the Financial Times/Standard & Poor's--
Actuaries World Utility Index was +3.68%. (Fund results shown do not
reflect sales charges and would be lower if sales charges were
included. For complete performance information, see pages 4--6 of
this report to shareholders.) Driving the Fund's performance for the
February quarter was its geographical diversification and country
selection. As of February 29, 1996, the Fund's holdings were in-
vested in 23 countries, with 51% of net assets in US markets and 48%
in foreign markets. Following strong performance in the month of
December, domestic utilities began to show signs of weakness in
January 1996, which was followed by a further decline in February.
This decline in domestic utility stock prices was driven primarily
by rising long-term interest rates. For the most part, the
performance of non-US utility markets reflected a strong December,
followed by a weaker January and an improved February. The major
utility markets contributing to this trend were Japan, the United
Kingdom and Spain. Combining the US and foreign utility markets, the
monthly total returns were negative for February but were positive
in both January and December.
Most of the news impacting utility stocks during the February
quarter took place in the United States rather than abroad. First,
in the United States a new telecommunications law was signed that
will eventually allow greater competition in both the local and long
distance telephone markets. Second, in the US-based electric utility
sector, cost-cutting and international acquisitions continued during
the February quarter, and are expected to result in enhancement to
both cash flow and earnings over time. Moreover, the pace of
changing rate-of-return regulation appears to have slowed and to be
more evolutionary than revolutionary. While the individual states
have varied considerably in terms of their efforts to restructure
the electric utility sector, so far only California, Michigan and
New Hampshire have adopted restructuring plans. The issue of
"stranded investment" (a plant used for the generation of
electricity that is no longer competitive) was recently addressed in
President Clinton's Report to Congress. The report indicates that
under rate-of-return regulation, utilities have been limited on the
upside in their rates/profits to no more than a fair return on
investments. Therefore, they should be allowed to recover most
stranded costs as long as the investments were authorized by
regulators at the beginning of the project.
<PAGE>
The overseas telecommunications and electric markets continued to be
dominated by the issues of open competition, regulatory changes and
the flow of new issues that are expected to come to market in the
current year. First, potential changes in leadership from upcoming
elections appear to be a dominant issue impacting the utility group
in Europe. However, with the regulatory climate being relatively
stable and company cash flows continuing to grow and finance
dividends and acquisitions, the sector remains selectively
attractive. Second, the desire by many governments to control
inflation remains a constraint on tariff increases for Latin America
and some of the Pacific Rim-based utility companies. While this may
currently impact the existing companies that for the most part were
at one time fully government-owned, the need for additional sources
of electric power and improved telecommunications (which are both
capital-intensive) should yield somewhat favorable results for the
two utility sectors. Third, the potential for a significant amount
of capital to be raised in the equity markets in the next several
months, particularly from the telecommunications sector in Europe,
is very large. In the near term, this may create an overhang of
supply of utility common stock, but it may also highlight the
relative attractiveness of some of the existing publicly traded
companies.
These issues, coupled with valuation levels, resulted in only a few
transactions in the Fund's portfolio during the quarter ended
February 29, 1996. We initiated a position in the Brazilian
telecommunications company, Telecomunicacoes Brasileiras S.A.--
Telebras based on improving fundamentals that resulted in positive
earnings momentum. Telebras is the primary supplier of public
telecommunications services in Brazil, through its 28 operating
subsidiaries. The company is controlled by the Brazilian government,
which by law is required to own more than 50% of the voting shares.
The Telebras network consists of over 13.5 million installed access
lines and over 12.6 million access lines in service. Brazil has
approximately 9 access lines in service per 100 inhabitants,
implying room for substantial growth.
We completed the sale of the Fund's holdings in China Light & Power
Co., Ltd. and The Hong Kong Electric Holdings, Ltd. This action,
coupled with price changes, resulted in the Fund's position in the
Hong Kong utility market declining to 0.45% of net assets compared
to 2.58% as of November 30, 1995. The sales were driven by
fundamental changes at both companies as well as concern over the
political and economic climate. In the United States, we completed
the sale of NICOR Inc. These were the only significant changes made
to the Fund's portfolio composition during the February quarter.
<PAGE>
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
March 26, 1996
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* 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.
<PAGE>
* 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).
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>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
2/29/96 11/30/95 2/28/95 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares $13.97 $13.52 $12.09 +17.64%(1) +5.20%(1)
Class B Shares 13.92 13.47 12.05 +17.61(1) +5.22(1)
Class C Shares 13.91 13.46 12.05 +17.53(1) +5.22(1)
Class D Shares 13.98 13.55 12.11 +17.53(1) +5.04(1)
Class A Shares--Total Return +22.04(2) +6.09(3)
Class B Shares--Total Return +21.07(4) +5.91(5)
Class C Shares--Total Return +21.01(6) +5.91(7)
Class D Shares--Total Return +21.56(8) +5.87(9)
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
(1)Percent change includes reinvestment of $0.245 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.483 per share ordinary
income dividends and $0.245 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.117 per share ordinary
income dividends and $0.245 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.380 per share ordinary
income dividends and $0.245 per share capital gains distributions.
<PAGE>
(5)Percent change includes reinvestment of $0.090 per share ordinary
income dividends and $0.245 per share capital gains distributions.
(6)Percent change includes reinvestment of $0.383 per share ordinary
income dividends and $0.245 per share capital gains distributions.
(7)Percent change includes reinvestment of $0.091 per share ordinary
income dividends and $0.245 per share capital gains distributions.
(8)Percent change includes reinvestment of $0.445 per share ordinary
income dividends and $0.245 per share capital gains distributions.
(9)Percent change includes reinvestment of $0.109 per share ordinary
income dividends and $0.245 per share capital gains distributions.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/95 +23.74% +18.79%
Inception (12/28/90)
through 12/31/95 +11.59 +10.68
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/95 +22.73% +18.73%
Inception (12/28/90)
through 12/31/95 +10.73 +10.73
[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>
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 12/31/95 +22.67% +21.67%
Inception (10/21/94)
through 12/31/95 +15.32 +15.32
[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*
Year Ended 12/31/95 +23.62% +18.67%
Inception (10/21/94)
through 12/31/95 +16.13 +12.22
[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
1995 11.83 13.86 0.245 0.483 +23.74
1/1/96--2/29/96 13.86 13.97 -- -- + 0.79
------ ------
Total $0.284 Total $2.364
Cumulative total return as of 2/29/96: +74.40%**
<PAGE>
<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>
PERFORMANCE DATA (concluded)
<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
1995 11.81 13.83 0.245 0.380 +22.73
1/1/96--2/29/96 13.83 13.92 -- -- + 0.65
------ ------
Total $0.284 Total $1.922
Cumulative total return as of 2/29/96: +67.55%**
<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>
<PAGE>
<TABLE>
Performance
Summary--
Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $12.34 $11.81 -- $0.117 - 3.35%
1995 11.81 13.82 $0.245 0.383 +22.67
1/1/96--2/29/96 13.82 13.91 -- -- + 0.65
------ ------
Total $0.245 Total $0.500
Cumulative total return as of 2/29/96: +19.33%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<TABLE>
Performance
Summary--
Class D Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $12.37 $11.84 -- $0.124 - 3.29%
1995 11.84 13.90 $0.245 0.445 +23.62
1/1/96--2/29/96 13.90 13.98 -- -- + 0.58
------ ------
Total $0.245 Total $0.569
Cumulative total return as of 2/29/96: +20.24%**
<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>
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)(a) $ 3,770,294 $ 4,325,000 1.0%
200,000 Telefonica de Argentina S.A. (ADR)(a) 4,140,594 5,225,000 1.2
------------ ------------ ------
7,910,888 9,550,000 2.2
Utilities--Electric 6,600 Central Costanera S.A. (ADR)(a) 158,400 204,600 0.0
Total Common Stocks in Argentina 8,069,288 9,754,600 2.2
Australia Utilities--Gas 2,000,000 The Australian Gas & Light
Co., Ltd. 5,280,752 8,100,520 1.8
Total Common Stocks in Australia 5,280,752 8,100,520 1.8
Austria Utilities--Gas 41,820 Energie--Versorgung Niederoesterreich
AG (EVN) 3,050,015 5,544,724 1.3
Total Common Stocks in Austria 3,050,015 5,544,724 1.3
Brazil Telecommunications 45,000 Telecomunicacoes Brasileiras
S.A.--Telebras (ADR)(a) 2,176,898 2,362,500 0.5
Total Common Stocks in Brazil 2,176,898 2,362,500 0.5
Canada Telecommunications 140,000 BC Telecom, Inc. 2,593,297 2,575,029 0.6
Utilities--Electric 458,600 Nova Scotia Power Co. 4,322,473 4,050,499 0.9
Utilities--Gas 254,400 Transcanada Pipeline Co. Ltd.
(ADR)(a) 3,941,562 3,593,400 0.8
200,000 Westcoast Energy Inc. 3,470,767 3,175,000 0.7
------------ ------------ ------
7,412,329 6,768,400 1.5
Total Common Stocks in Canada 14,328,099 13,393,928 3.0
<PAGE>
Chile Telecommunications 63,000 Compania de Telecommunicaciones
de Chile S.A. (Sponsored) (ADR)(a) 4,489,995 5,213,250 1.2
Utilities--Electric 65,000 Chilgener S.A. (ADR)(a) 1,495,000 1,568,125 0.4
156,000 Distribuidora Chilectra Metropolitana
S.A. (ADR)(a) 4,249,463 8,112,000 1.9
28,000 Enersis S.A. (ADR)(a) 544,224 794,500 0.2
------------ ------------ ------
6,288,687 10,474,625 2.5
Total Common Stocks in Chile 10,778,682 15,687,875 3.7
Denmark Telecommunications 281,000 Tele Danmark A/S (ADR)(a) 6,610,806 8,289,500 1.9
Total Common Stocks in Denmark 6,610,806 8,289,500 1.9
France Utilities--Water 87,988 Compagnie Generale des Eaux 9,481,908 8,816,258 2.0
40,000 Lyonnaise des Eaux Dumez 3,989,365 3,705,556 0.8
Total Common Stocks in France 13,471,273 12,521,814 2.8
Germany Utilities--Electric 200,000 Veba AG 6,526,985 9,411,765 2.1
Total Common Stocks in Germany 6,526,985 9,411,765 2.1
</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>
Hong Kong Utilities--Gas 1,000,000 The Hong Kong & China Gas Co., Ltd. $ 1,627,410 $ 1,959,795 0.4%
Total Common Stocks in Hong Kong 1,627,410 1,959,795 0.4
India Utilities--Electric 49,500 CESC Ltd. (Units) (b) 2,640,330 915,750 0.2
Total Common Stocks in India 2,640,330 915,750 0.2
<PAGE>
Indonesia Telecommunications 5,500 PT Indonesian Satellite Corp.
(Indosat) (ADR)(a) 176,275 205,563 0.0
29,600 PT Telekomunikasi Indonesia
(Persero) (ADR)(a) 532,800 928,700 0.2
Total Common Stocks in Indonesia 709,075 1,134,263 0.2
Italy Telecommunications 3,091,700 Societa Finanziara Telefonica
S.p.A. (STET) 5,780,442 7,037,208 1.6
5,000,000 Telecom Italia Mobile S.p.A. 3,090,118 9,178,589 2.1
3,900,000 Telecom Italia S.p.A. 3,619,691 6,532,390 1.5
------------ ------------ ------
12,490,251 22,748,187 5.2
Utilities--Gas 1,786,300 Societa Italiana il Gas
(Italgas) S.p.A. 5,169,953 5,547,551 1.3
Total Common Stocks in Italy 17,660,204 28,295,738 6.5
Korea Utilities--Electric 199,200 Korea Electric Power Corp.
(KEPCO) (ADR)(a) 4,008,900 4,830,600 1.1
Total Common Stocks in Korea 4,008,900 4,830,600 1.1
Malaysia Telecommunications 1,035,000 Telekom Malaysia BHD 7,499,205 8,895,801 2.0
Total Common Stocks in Malaysia 7,499,205 8,895,801 2.0
Mexico Telecommunications 105,000 Telefonos de Mexico, S.A. de
C.V. (ADR)(a) 5,594,445 3,202,500 0.7
Total Common Stocks in Mexico 5,594,445 3,202,500 0.7
New Zealand Telecommunications 100,000 Telecom Corporation of New Zealand
Ltd. (ADR)(a) 3,935,303 7,112,500 1.6
Total Common Stocks in New Zealand 3,935,303 7,112,500 1.6
Philippines Telecommunications 100,000 Philippine Long Distance Telephone
Co. (ADR)(a) 4,311,241 5,912,500 1.4
Utilities--Electric 57,000 Manila Electric Co. (MERALCO) 'B' 497,246 530,080 0.1
Total Common Stocks in the Philippines 4,808,487 6,442,580 1.5
<PAGE>
Portugal Telecommunications 30,900 Portugal Telecom, S.A. (ADR)(a) 578,602 710,700 0.2
Total Common Stocks in Portugal 578,602 710,700 0.2
Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 8,840,601 2.0
32,000 Telefonica de Espana S.A. (ADR)(a) 1,275,584 1,572,000 0.4
------------ ------------ ------
7,439,648 10,412,601 2.4
Utilities--Electric 154,800 Empresa Nacional de Electricidad
S.A. (ADR)(a) 5,123,952 8,726,850 2.0
92,000 HidroElectrica Del Cantabrico S.A. 3,107,921 3,172,542 0.7
808,500 Iberdrola I S.A. 4,998,321 7,975,178 1.8
------------ ------------ ------
13,230,194 19,874,570 4.5
Total Common Stocks in Spain 20,669,842 30,287,171 6.9
Thailand Telecommunications 15,000 TelecomAsia Corporation Public Co.,
Ltd. PLC (ADR)(a) 328,050 397,500 0.1
Utilities--Electric 332,000 Electricity Generating Company of
Thailand (EGCOMP) 296,433 1,317,460 0.3
Total Common Stocks in Thailand 624,483 1,714,960 0.4
United Telecommunications 771,000 British Telecommunications PLC 5,385,185 4,394,538 1.0
Kingdom 180,000 Vodafone Group PLC (ADR)(a) 5,355,931 6,367,500 1.5
------------ ------------ ------
10,741,116 10,762,038 2.5
Utilities--Electric 77,143 London Electricity PLC 1,201,329 871,915 0.2
76,752 National Grid Group PLC 246,312 230,021 0.1
445,000 PowerGen PLC 3,253,482 3,678,993 0.8
------------ ------------ ------
4,701,123 4,780,929 1.1
Total Common Stocks in the
United Kingdom 15,442,239 15,542,967 3.6
<PAGE>
United Telecommunications 31,000 AT&T Corp. 1,749,485 1,972,375 0.5
States 146,800 Ameritech Corp. 5,940,672 8,459,350 1.9
138,700 Bell Atlantic Corp. 7,358,558 9,171,538 2.1
236,800 BellSouth Corp. 6,828,233 9,442,400 2.2
120,000 Frontier Corp. 2,437,200 3,600,000 0.8
235,700 GTE Corp. 8,322,438 10,105,638 2.3
147,700 NYNEX Corp. 6,204,823 7,606,550 1.7
129,900 SBC Communications, Inc. 4,873,568 7,128,263 1.6
217,900 U S West Communications Group (c) 6,024,567 7,136,225 1.6
------------ ------------ ------
49,739,544 64,622,339 14.7
Utilities--Electric 289,500 Allegheny Power System, Inc. 7,707,195 8,431,687 1.9
207,200 Boston Edison Co. 5,530,724 5,723,900 1.3
321,962 CINergy Corp. 7,622,146 9,618,615 2.2
218,200 Consolidated Edison Co. of New York 6,893,524 7,118,775 1.6
138,900 DTE Energy Co. (d) 4,670,083 4,948,312 1.1
110,250 Dominion Resources, Inc. 4,427,302 4,354,875 1.0
193,000 Duke Power Co. 7,776,207 9,432,875 2.2
283,000 Edison International 6,379,546 4,952,500 1.1
282,300 General Public Utilities Corp. 8,552,046 9,421,762 2.2
290,200 Houston Industries, Inc. 7,082,367 6,565,775 1.5
244,800 NIPSCO Industries, Inc. 6,616,371 9,241,200 2.1
221,000 New York State Electric & Gas Corp. 7,952,312 5,221,125 1.2
185,700 Northeast Utilities Co. 4,974,996 4,131,825 0.9
180,500 PECO Energy Co. 5,532,539 5,099,125 1.2
150,000 Pacific Gas and Electric Company 4,135,500 3,843,750 0.9
323,000 PacifiCorp 6,465,176 6,702,250 1.5
192,000 Public Service Co. of Colorado 5,832,890 6,768,000 1.5
381,200 Southern Co. 6,665,086 9,101,150 2.1
177,300 Western Resources Co. 5,664,717 5,673,600 1.3
------------ ------------ ------
120,480,727 126,351,101 28.8
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Utilities--Gas 130,000 The Brooklyn Union Gas Co. $ 3,371,550 $ 3,396,250 0.8%
States 226,000 The Coastal Corp. 6,038,593 8,305,500 1.9
(concluded) 236,000 Questar Corp. 6,554,436 7,434,000 1.7
127,300 Sonat, Inc. 3,309,934 4,264,550 1.0
------------ ------------ ------
19,274,513 23,400,300 5.4
Total Common Stocks in the
United States 189,494,784 214,373,740 48.9
Total Investments in Common Stocks 345,586,107 410,486,291 93.5
Face
Amount Fixed-Income Securities
Australia Telecommuni- US$ 7,960,000 Telstra Corp., Ltd., 6.50%
cations due 7/31/2003 8,115,578 7,880,400 1.8
Total Fixed-Income Securities
in Australia 8,115,578 7,880,400 1.8
Korea Telecommuni- 2,500,000 Korea Telecom, 7.40% due 12/01/1999 2,499,500 2,539,600 0.6
cations
Total Fixed-Income Securities
in Korea 2,499,500 2,539,600 0.6
United Telecommuni- 3,500,000 Bell Cablemedia PLC, 11.95%*
Kingdom cations due 7/15/2004 2,365,327 2,572,500 0.6
Total Fixed-Income Securities
in the United Kingdom 2,365,327 2,572,500 0.6
<PAGE>
United Telecommuni- 4,000,000 Rochester Telephone Corp., 9.25%
States cations due 6/01/2000 4,111,200 4,439,200 1.0
Utilities-- 4,000,000 Consumer Power Co., 8.875% due
Electric 11/15/1999 4,190,000 4,270,520 1.0
Total Fixed-Income Securities in the
United States 8,301,200 8,709,720 2.0
Total Investments in
Fixed-Income Securities 21,281,605 21,702,220 5.0
Short-Term Securities
Repurchase 5,883,000 PaineWebber Group, Inc., purchased
Agreements** on 2/29/1996 to yield 5.35% to
3/01/1996 5,883,000 5,883,000 1.3
Total Investments in
Short-Term Securities 5,883,000 5,883,000 1.3
Total Investments $372,750,712 438,071,511 99.8
============
Other Assets Less Liabilities 770,206 0.2
------------ ------
Net Assets $438,841,717 100.0%
============ ======
Net Asset Class A--Based on net assets of $45,700,049 and
Value: 3,270,748 shares outstanding $ 13.97
============
Class B--Based on net assets of $387,749,247 and
27,847,725 shares outstanding $ 13.92
============
Class C--Based on net assets of $2,919,847 and
209,895 shares outstanding $ 13.91
============
Class D--Based on net assets of $2,472,574 and
176,860 shares outstanding $ 13.98
============
<PAGE>
<FN>
*Represents a zero coupon bond; the interest rate shown is the
effective yield at the time of purchase by the Fund.
**Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
(a)American Depositary Receipts (ADR).
(b)Each unit consists of 5 Global Depositary Receipts and 2 warrants
of CESC Ltd.
(c)U SWest Inc. spun off U SWest Media Group and changed its name to
U S West Communications Group.
(d)Formerly Detroit Edison Co.
</TABLE>
PORTFOLIO INFORMATION
Worldwide
Investments as of 2/29/96
Top Ten Holdings Percent of
(Equity Investments) Net Assets
GTE Corp. 2.3%
CINergy Corp. 2.2
BellSouth Corp. 2.2
Duke Power Co. 2.2
General Public Utilities Corp. 2.2
Veba AG 2.1
NIPSCO Industries, Inc. 2.1
Telecom Italia Mobile S.p.A. 2.1
Bell Atlantic Corp. 2.1
Southern Co. 2.1
<PAGE>
Additions
Edison International
National Grid Group PLC
Telecomunicacoes Brasileiras S.A.--Telebras (ADR)
Deletions
China Light &Power Co., Ltd.
The Hong Kong &China Gas Co., Ltd. (Warrants)
The Hong Kong Electric Holdings, Ltd.
NICOR Inc.
SCEcorp
