GLOBAL HIGH INCOME DOLLAR FUND INC, N-30D, 1996-07-02

GLOBAL HIGH INCOME DOLLAR FUND INC
N-30D, 1996-07-02

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<PAGE>
GLOBAL HIGH
INCOME DOLLAR
FUND INC.

SEMIANNUAL REPORT
APRIL 30, 1996

<PAGE>
- --------------------------------------------------------------------------------

June 14, 1996

Dear Shareholder,

During the six months ended April 30, 1996, credit developments in emerging
markets debt continued to produce a mixed picture. While fundamentals on a
country-specific level were mixed, emerging market debt prices were driven
higher by favorable liquidity conditions worldwide.

The Fund's total return for the six months ended April 30, 1996 was 14.01% based
on the Fund's net asset value, and 10.97% based on the Fund's share price on the
New York Stock Exchange. As of April 30, 1996, the Fund's net asset value per
share was $14.24, while its share price on the New York Stock Exchange was
$12.25. The Fund has maintained a monthly dividend of $0.1060 per share since
March 31, 1995. During the six month period, the Fund made distributions
totaling $0.6360 per share.

INVESTMENT STRATEGY

The Fund continued to hold large positions in U.S. dollar-denominated Mexican,
Brazilian and Polish government bonds during the six months ended April 30,
1996. In Mexico, the economy has benefited from positive trade flows and the
peso now appears to be fairly valued. The Fund's strategy in Mexico continues to
emphasize Mexican Brady bonds. The Venezuelan government managed to enact
necessary economic reforms and reached a loan agreement with the International
Monetary Fund ('IMF'). Venezuelan Brady bonds have benefited from the IMF deal
as well as appreciating oil prices. The Fund's strategy in Venezuela has been to
maintain its position and possibly add to it in the future.

In Brazil, we reduced holdings because of continued concerns about the slow pace
of economic reform coupled with the rate of domestic debt accumulation. Economic
reform in Brazil appears to have stalled in Congress and it seems unlikely that
anything will happen until after the general election in October 1996. Credit
perceptions of Argentine debt and, therefore, bond valuations have recently
benefited from evidence that the economy is emerging from a recession. The
government has taken advantage of this favorable market environment and issued
more debt. The Fund remains underweighted in Argentina, as any problem in Brazil
will more than likely have negative consequences for Argentine debt.

OUTLOOK

Over the six-month period, we have raised some cash periodically, as we believe
prices have moved up more in response to liquidity conditions than on positive
credit developments, general and temporary. We are looking for opportunities to
reinvest the Fund's cash and to further diversify the portfolio. While not all
developments in emerging markets may be positive, the question is whether or not
the sector offers sufficient compensation for the risks involved. We believe
available yields generally compensate for the risk of maintaining a balanced
exposure to emerging market debt.

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<PAGE>
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Our ultimate objective in managing your investments is to help you successfully
meet your financial goals. We thank you for your continued support, and welcome
any comments or questions you may have.

Sincerely,

<TABLE>
<S> <C>
MARGO ALEXANDER STUART WAUGH
President, Vice President and Portfolio Manager,
Mitchell Hutchins Asset Management Inc. Global High Income Dollar Fund Inc.
</TABLE>

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<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.
- --------------------------------------------------------------------------------
Portfolio of Investments
April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------- ------------------------ ------------------------ ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES--76.05%

<CAPTION>
ARGENTINA--2.33%
<S> <C> <C> <C> <C>
US$ 9,900 Republic of Argentina................... 03/31/05 6.313%+ $ 7,548,750
------------
<CAPTION>
BRAZIL--15.07%
<S> <C> <C> <C> <C>
US$ 3,000 Banco National de Desenvelvimento
Economico e Social.................... 04/27/98 10.375 3,060,000
US$ 6,000 Celulose Nipo-Brasileira, S.A........... 12/21/03 9.375 5,880,000
US$ 5,000 Companhia Brasileira de Petroleos
Ipiranga.............................. 02/25/02 8.625 4,981,250
US$ 7,000 Federal Republic of Brazil, DISC........ 04/15/24 6.500+ 4,725,000
US$ 7,000 Federal Republic of Brazil, EI.......... 04/15/06 6.500+ 5,302,500
US$32,000 Federal Republic of Brazil, EXIT........ 09/15/13 6.000 18,960,000
US$ 6,000 Metalurgica Gerbau, S.A................. 11/23/01 10.250 5,895,000
------------
48,803,750
------------
<CAPTION>
CHILE--0.96%
<S> <C> <C> <C> <C>
US$ 3,000 Banco del Estado Chile, S.A............. 08/01/01 8.390 3,116,250
------------
<CAPTION>
COLOMBIA--0.63%
<S> <C> <C> <C> <C>
US$ 2,000 Banco Ganadero, S.A..................... 08/26/99 9.750 2,055,000
------------
<CAPTION>
INDIA--0.88%
<S> <C> <C> <C> <C>
US$ 3,000 Reliance Industries, Ltd................ 09/27/05 8.125 2,865,000
------------
<CAPTION>
INDONESIA--3.33%

<S> <C> <C> <C> <C>
5,500,000 Bank Pembangunan Indonesia.............. 07/17/97 15.930+ 2,248,873
10,000,000 Bank Tambungan Negara................... 07/31/98 15.800+ 4,056,665
2,000,000 Bank Tambungan Negara................... 01/23/98 17.000 837,089
4,000,000 Perusahaan Listrik Negara............... 10/29/00 16.860+ 1,614,080
5,000,000 Polysindo Eka Perkasa................... 05/05/98 15.920+ 2,012,234
------------
10,768,941
------------
<CAPTION>
JAMAICA--1.62%
<S> <C> <C> <C> <C>
US$ 5,718 Government of Jamaica Loan
Participation, Tranche A (JP
Morgan)(4)............................ 10/16/00 6.750+ 5,260,233
------------
<CAPTION>
MEXICO--20.85%
<S> <C> <C> <C> <C>
US$ 3,720 Grupo Industrial Durango, S.A. de
C.V................................... 07/15/01 12.000 3,608,400
US$10,000 Mexican Multi Year Refinance
Loan Participation (Salomon
Brothers)(4).......................... 03/20/05 6.500+ 8,100,000
US$19,500 Petroleos Mexicanos..................... 12/01/23 8.625 14,820,000
US$42,750 United Mexican States, DISC(1).......... 12/31/19 6.547 to 6.766+ 34,093,125
US$10,500 United Mexican States, PAR(2)........... 12/31/19 6.250 6,903,750
------------
67,525,275
------------
<CAPTION>
MOROCCO--2.76%
<S> <C> <C> <C> <C>
US$12,500 Kingdom of Morocco Loan Participation,
Tranche A (JP Morgan)(4).............. 01/01/09 6.594+ 8,937,500
------------
</TABLE>

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------- ------------------------ ------------------------ ------------

<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES--(CONCLUDED)

<CAPTION>
NETHERLANDS--0.95%
<S> <C> <C> <C> <C>
US$ 3,000 Indah Kiat International Finance........ 06/15/06 12.500% $ 3,067,500
------------
<CAPTION>
PANAMA--1.67%
<S> <C> <C> <C> <C>
US$10,000 Republic of Panama, PDI................. 06/30/16 4.000++ 5,400,000
------------
<CAPTION>
PHILIPPINES--3.94%
<S> <C> <C> <C> <C>
US$ 3,000 CE Casecnan Water & Energy.............. 11/15/10 11.950 2,962,500
US$ 6,500 Central Bank of the Phillipines......... 12/01/17 6.250 5,126,875
US$ 5,000 Republic of Philippines................. 12/01/09 6.500+ 4,643,750
------------
12,733,125
------------
<CAPTION>
POLAND--10.11%
<S> <C> <C> <C> <C>
US$13,000 Republic of Poland, DISC................ 10/27/24 6.875+ 12,057,500
US$27,000 Republic of Poland, PDI................. 10/27/14 3.750# 20,655,000
------------
32,712,500
------------
<CAPTION>
SOUTH AFRICA--5.06%
<S> <C> <C> <C> <C>
30,250 Electricity Supply Commission of South
Africa................................ 06/01/08 11.000 5,158,047
US$ 2,933 Electricity Supply Commission of South
Africa Second Interim Dollar Agreement
Loans (Salomon Brothers)(4)........... 12/23/97 to 02/09/00 7.250 to 7.430+ 2,848,000
44,000 Republic of South Africa................ 08/31/10 13.000 8,382,727
------------
16,388,774
------------
<CAPTION>
TRINIDAD & TOBAGO--2.97%
<S> <C> <C> <C> <C>
US$ 9,000 Republic of Trinidad and Tobago......... 11/03/00 to 10/03/04 9.750 to 11.750 9,615,000
------------
<CAPTION>
VENEZUELA--2.92%
<S> <C> <C> <C> <C>
US$16,175 Republic of Venezuela, PAR(3)........... 03/31/20 6.750 9,442,156
------------
<CAPTION>

TOTAL LONG-TERM DEBT SECURITIES (cost--$232,618,069).. 246,239,754
<S> <C> <C> <C> <C>
------------
<CAPTION>
SHORT-TERM DEBT SECURITIES--13.59%
MEXICO--1.31%
<S> <C> <C> <C> <C>
38,000 Government of Mexico Treasury Bills..... 11/07/96 to 01/02/97 40.390 to 45.000@ 4,236,355
------------
<CAPTION>
POLAND--2.31%
<S> <C> <C> <C> <C>
22,300 Government of Poland Treasury Bills..... 07/03/96 to 04/23/97 20.906 to 21.250@ 7,492,862
------------
<CAPTION>
UNITED STATES--9.97%
<S> <C> <C> <C> <C>
32,400 U.S. Treasury Bills+++.................. 05/02/96 to 06/27/96 4.880 to 4.965@ 32,290,180
------------
TOTAL SHORT-TERM DEBT SECURITIES
(cost--$43,992,318)................................ 44,019,397
------------
<CAPTION>
REPURCHASE AGREEMENTS--11.33%
<S> <C> <C> <C> <C>
12,226 Repurchase Agreement dated 04/30/96,
with Citicorp Securities, Inc.,
collateralized by $8,490,000 U.S.
Treasury Bonds, 13.750%
due 08/15/04; proceeds: $12,227,800... 05/01/96 5.300 12,226,000
------------
12,228 Repurchase Agreement dated 04/30/96,
with Morgan Stanley Group, Inc.,
collateralized by $8,695,000 U.S.
Treasury Bonds, 12.000%
due 08/15/13; proceeds: $12,229,790... 05/01/96 5.270 12,228,000
------------
</TABLE>

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE

- --------- ------------------------ ------------------------ ------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS--(CONCLUDED)
$ 12,226 Repurchase Agreement dated 04/30/96,
with Salomon Brothers, Inc.,
collateralized by $12,547,000 U.S.
Treasury Notes, 6.125%
due 09/30/00; proceeds: $12,227,783... 05/01/96 5.250% $ 12,226,000
------------
TOTAL REPURCHASE AGREEMENTS (cost--$36,680,000).... 36,680,000
------------
Total Investments (cost--$313,290,387)--100.97%.... 326,939,151
Liabilities in excess of other assets-- (0.97%).... (3,133,255)
------------
Net Assets--100.00%................................ $323,805,896
------------
------------
</TABLE>

- ------------
Note: The Portfolio of Investments is listed by the issuer's country of origin.

<TABLE>
<S> <C>
* In local currency unless otherwise indicated
+ Reflects rate at April 30, 1996 on variable rate instruments.
++ Purchased on a when issued basis, coupon rate noted is as stated in terms of Brady Bond exchange agreement.
+++ $2,700,000 face amount segregated for when issued bond purchase.
# Reflects rate at April 30, 1996 on step coupon rate instruments.
@ Yield to maturity
(1) With an additional 65,767,000 recoverable rights attached maturing on 06/30/03 with no market value
(2) With an additional 10,500,000 recoverable rights attached maturing on 06/30/03 with no market value
(3) With an additional 80,875 warrants attached maturing on 04/15/20 with no market value
(4) Participation interest was acquired through the financial institution indicated parenthetically.
DISC Discount Bonds
EI Eligible Interest Bond
EXIT Investment Bonds
PAR Par Bonds
PDI Past Due Interest Bond
</TABLE>

<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACT
<S> <C> <C> <C> <C>
CONTRACT TO IN EXCHANGE MATURITY UNREALIZED
DELIVER FOR DATE APPRECIATION
----------- ------------- ------------- ------------
South African Rand................. 50,000,000 US$12,428,536 06/20/96 $1,010,521
------------
------------
</TABLE>

TOTAL INVESTMENTS BY TYPE OF ISSUER

<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
---------------------------
LONG-TERM SHORT-TERM
--------- ----------
<S> <C> <C>
Government and other public issuers..... 54.09% 13.59%
Repurchase Agreements................... -- 11.33
Oil/Gas................................. 6.12 --
Banks................................... 4.75 --
Utilities--Electric & Water............. 3.88 --
Paper................................... 2.93 --
Steel................................... 1.82 --
Financial............................... 0.95 --
Other................................... 1.51 --
--------- -----
76.05% 24.92%
--------- -----
--------- -----
</TABLE>

See accompanying notes to financial statements.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (cost--$313,290,387).... $326,939,151
Cash denominated in foreign currencies...................... 69,849
Interest receivable......................................... 5,633,796
Receivable for investments sold............................. 3,997,707
Net unrealized appreciation on forward foreign currency
contracts.................................................. 1,010,521
Deferred organizational expenses............................ 66,603
Other assets................................................ 9,056
------------
Total assets............................................ 337,726,683
------------
LIABILITIES:
Payable for investments purchased........................... 13,359,946
Payable to investment adviser and administrator............. 330,926
Accrued expenses and other liabilities...................... 229,915

------------
Total liabilities....................................... 13,920,787
------------
NET ASSETS:
Capital stock--$0.001 par value; total authorized
shares--100,000,000; 22,736,667 shares issued and
outstanding................................................ 335,819,052
Undistributed net investment income......................... 969,471
Accumulated net realized losses from investment and foreign
currency transactions...................................... (27,600,076)
Net unrealized appreciation of investments and other assets,
liabilities and forward contracts denominated
in foreign currencies...................................... 14,617,449
------------
Net assets.............................................. $323,805,896
------------
------------
Net asset value per share............................... $14.24
------------
------------
</TABLE>

See accompanying notes to financial statements.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding taxes).............. $18,072,159
-----------

EXPENSES:
Investment advisory and administration................... 1,956,086
Custody and accounting................................... 178,320
Reports and notices to shareholders...................... 50,900
Legal and audit.......................................... 38,312
Transfer agency fees..................................... 14,627
Amortization of organizational expenses.................. 13,954
Directors' fees.......................................... 4,750
Other expenses........................................... 6,151
-----------
2,263,100
-----------
NET INVESTMENT INCOME....................................... 15,809,059

-----------

REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized gains (losses) from:
Investment transactions............................... 8,219,137
Foreign currency transactions......................... (219,674)
Net change in unrealized appreciation/depreciation of:
Investments........................................... 16,104,688
Other assets, liabilities and forward contracts
denominated in foreign currencies.................... 1,265,919
-----------
NET REALIZED AND UNREALIZED GAINS FROM INVESTMENT
ACTIVITIES................................................ 25,370,070
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $41,179,129
-----------
-----------
</TABLE>

See accompanying notes to financial statements.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
For the Six
Months Ended For the Year
April 30, Ended
1996 October 31,
(unaudited) 1995
------------ ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.......................... $ 15,809,059 $ 30,471,283
Net realized gains (losses) from investment
transactions................................. 8,219,137 (15,994,840)
Net realized losses from foreign currency
transactions................................. (219,674) (4,621,486)
Net change in unrealized
appreciation/depreciation of investments..... 16,104,688 25,637,170

Net change in unrealized
appreciation/depreciation of other assets,
liabilities and forward contracts denominated
in foreign currencies........................ 1,265,919 (417,075)

------------ ------------
Net increase in net assets resulting from
operations................................... 41,179,129 35,075,052
------------ ------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.......................... (14,460,520) (26,227,183)
Paid-in-capital................................ -- (3,512,377)
------------ ------------
(14,460,520) (29,739,560)
------------ ------------
Net increase in net assets..................... 26,718,609 5,335,492

NET ASSETS:
Beginning of period............................ 297,087,287 291,751,795
------------ ------------

End of period (including undistributed net
investment income of $969,471
at April 30, 1996)........................... $323,805,896 $297,087,287
------------ ------------
------------ ------------
</TABLE>

See accompanying notes to financial statements.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------
Notes to Financial Statements--(unaudited)
- --------------------------------------------------------------------------------

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Global High Income Dollar Fund Inc. (the 'Fund') was incorporated in the state
of Maryland on February 23, 1993 and is registered with the Securities and
Exchange Commission as a closed-end, non-diversified management investment
company. Organizational costs have been deferred and are being amortized using
the straight line method over a period not to exceed 60 months from the date the
Fund commenced operations.

The preparation of financial statements in accordance with generally accepted
accounting principles requires Fund management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates. Following is a summary of
significant accounting policies:

Valuation and Accounting for Investments--Securities which are listed on U.S.
and foreign stock exchanges are valued at the last sale price on the day the
securities are being valued or, lacking any sales on such day, at the last
available bid price. In cases where securities are traded on more than one
exchange, the securities are generally valued on the exchange designated by
Mitchell Hutchins Asset Management Inc. ('Mitchell Hutchins'), a wholly owned
subsidiary of PaineWebber Incorporated ('PaineWebber') and investment adviser
and administrator of the fund, as the primary market. Securities traded in the
over-the-counter ('OTC') market and listed on the National Association of
Securities Dealers Automated Quotation System ('NASDAQ') are valued at the last
trade price on NASDAQ prior to the time of valuation; other OTC securities are
valued at the last bid price available in the OTC market prior to the time of
valuation. The amortized cost method of valuation generally is used to value
short-term debt instruments with sixty days or less remaining to maturity.
Securities for which market quotations are not readily available (including
restricted securities subject to limitations as to their sale) are valued at
fair value as determined in good faith by or under the direction of the Fund's
board of directors. When market quotations are not readily available for any of
the Fund's debt securities, where the amortized cost method of valuation is not
used, such securities are valued based upon appraisals received from a pricing
service using a computerized matrix system, or based upon appraisals derived
from information concerning the security or similar securities received from
recognized dealers in those securities. All investments quoted in foreign
currencies will be valued weekly in U.S. dollars on the basis of foreign
currency exchange rates prevailing at the time such valuation is determined by
the Fund's custodian.

Foreign currency exchange rates are generally determined prior to the close of
the New York Stock Exchange ('NYSE'). Occasionally events affecting the value of
foreign investments and such exchange rates occur between the time at which they
are determined and the close of the NYSE, which will not be reflected in the

computation of the Fund's net asset value. If events materially affecting the
value of such securities or currency exchange rates occurred during such time
period, the securities will be valued at their fair value as determined in good
faith by or under the direction of the Fund's board of directors.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------

Investment Transactions and Investment Income--Investment transactions are
recorded on trade date. Realized gains and losses from investment transactions
and foreign exchange transactions are calculated on the identified cost method.
Interest income is recorded on an accrual basis. Discounts are accreted as
adjustments to interest income and the identified cost of investments.

Foreign Currency Translation--The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:

(1) market value of investment securities, other assets and liabilities--at
the exchange rates prevailing at the end of the period.

(2) purchases and sales of investment securities, income and expenses--at
the rates of exchange prevailing on the respective dates of such
transactions.

Although the net assets and the market value of the Fund are presented at the
foreign exchange rates at the close of the period, the Fund does not generally
isolate the effect of fluctuations in foreign exchange rates from the effect of
the changes in market prices of securities. However, the Fund does isolate the
effect of fluctuations in foreign exchange rates when determining the gain or
loss upon the sale or maturity of foreign currency-denominated debt obligations
pursuant to federal income tax regulations. Certain foreign exchange
gains/losses included in realized and unrealized gains/losses are included in or
reduce ordinary income for federal income tax purposes.

Realized gains/losses from investment transactions includes realized foreign
exchange gains and losses from the sale of portfolio securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions and the difference between interest
and foreign withholding taxes recorded on the Fund's books and the U.S. dollar
equivalent of the amounts received or paid. Unrealized gains and losses from
translating foreign currency-denominated assets and liabilities at year-end
exchange rates are included in change in unrealized appreciation/depreciation of
other assets, liabilities and forward contracts denominated in foreign
currencies.

Forward Foreign Currency Contracts--The Fund may enter into forward foreign

currency exchange contracts ('forward contracts') in connection with planned
purchases or sales of securities or to hedge the U.S. dollar value of portfolio
securities denominated in a particular currency.

The Fund has no specific limitation on the percentage of assets which may be
committed to such contracts. The Fund may enter into forward contracts or
maintain a net exposure to forward contracts only if (1) the consummation of the
contracts would not obligate the Fund to deliver an amount of foreign currency
in excess of the value of the position being hedged by such contracts or (2) the
Fund maintains cash, U.S. government securities or liquid, high-grade debt
securities in a segregated account in an amount not less than the value of its
total assets committed to the consummation of the forward contracts and not
covered as provided in (1) above, as marked-to-market daily.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------

Risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their forward contracts and
from unanticipated movements in the value of foreign currencies relative to the
U.S. dollar.

Fluctuations in the value of forward contracts are recorded for book purposes as
unrealized gains or losses by the Fund. Realized gains and losses include net
gains and losses recognized by the Fund on contracts which have matured.

Repurchase Agreements--The Fund's custodian takes possession of the collateral
pledged for investments in repurchase agreements. The underlying collateral is
valued daily on a mark-to-market basis to ensure that the value, including
accrued interest, is at least equal to the repurchase price. In the event of
default of the obligation to repurchase, the Fund has the right to liquidate the
collateral and apply the proceeds in satisfaction of the obligation. Under
certain circumstances, in the event of default or bankruptcy by the other party
to the agreement, realization and/or retention of the collateral may be subject
to legal proceedings. The Fund occasionally participates in joint repurchase
agreement transactions with other funds managed by Mitchell Hutchins.

Dividends and Distributions--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions are
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. These 'book/tax' differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.

CONCENTRATION OF RISK

Investing in securities of foreign issuers and currency transactions may involve
certain considerations and risks not typically associated with investments in
the United States. These risks include revaluation of currencies, adverse
fluctuations in foreign currency values and possible adverse political, social
and economic developments, including those particular to a specific industry,
country or region, which could cause the securities and their markets to be less
liquid and prices more volatile than those of comparable U.S. companies and U.S.
government securities. These risks are greater with respect to securities of
issuers located in emerging market countries in which the Fund is authorized to
invest.

INVESTMENT ADVISER AND ADMINISTRATOR

The Fund's board of directors has approved an Investment Advisory and
Administration Contract ('Advisory Contract') with Mitchell Hutchins, under
which Mitchell Hutchins serves as investment adviser and administrator of the
Fund. In accordance with the Advisory Contract, the Fund pays Mitchell Hutchins
an investment advisory and administration fee, which is accrued weekly and paid
monthly, at the annual rate of 1.25% of the Fund's average weekly net assets.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------

INVESTMENTS IN SECURITIES

For federal income tax purposes, the cost of securities owned at April 30, 1996,
was substantially the same as the cost of securities for financial statement
purposes.

At April 30, 1996, the components of net unrealized appreciation of investments
were as follows:

<TABLE>
<S> <C>
Gross appreciation (investments having an excess of value
over cost)................................................ $23,331,179
Gross depreciation (investments having an excess of cost
over value)............................................... (9,682,415)
-----------
Net unrealized appreciation of investments.................. $13,648,764
-----------
-----------
</TABLE>

For the six months ended April 30, 1996, aggregate purchases and sales of
portfolio securities, excluding short-term securities, were $74,634,984 and

$114,479,410, respectively.

CAPITAL STOCK

There are 100,000,000 shares of $0.001 par value capital stock authorized. Of
the 22,736,667 shares outstanding at April 30, 1996 Mitchell Hutchins owned
6,727 shares.

FEDERAL TAX STATUS

The Fund intends to distribute substantially all of its taxable income and to
comply with the other requirements of the Internal Revenue Code applicable to
regulated investment companies. Accordingly, no provision for federal income
taxes is required. In addition, by distributing during each calendar year
substantially all of its net investment income, capital gains and certain other
amounts, if any, the Fund intends not to be subject to a federal excise tax.

At October 31, 1995, the Fund had a capital loss carryforward of $34,742,334
available as a reduction, to the extent provided in the regulations, of any
future net realized capital gains, $19,604,699 will expire by October 31, 2002
and $15,137,635 will expire by October 31, 2003. To the extent that such losses
are used to offset future capital gains, it is probable that the gains so offset
will not be distributed.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------

Selected data for a share of capital stock outstanding throughout each period is
presented below:

<TABLE>
<CAPTION>
For the Six
Months Ended For the Years Ended
April 30, October 31, For the Period
1996 -------------------- October 8, 1993+
(unaudited) 1995 1994 to October 31, 1993
------------ -------- -------- -------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period...................... $ 13.07 $ 12.83 $ 15.21 $ 15.00
------------ -------- -------- ----------
Net investment income......... 0.70 1.34 1.43 0.04
Net realized and unrealized
gains (losses) from
investments and foreign
currency transactions....... 1.11 0.21 (2.40) 0.17
------------ -------- -------- ----------
Total increase (decrease) from
investment operations....... 1.81 1.55 (0.97) 0.21
------------ -------- -------- ----------
Dividends from net investment
income...................... (0.64) (1.16) (1.34) --
Distributions of
paid-in-capital............. -- (0.15) (0.07) --
------------ -------- -------- ----------
Total dividends and
distributions............... (0.64) (1.31) (1.41) --
------------ -------- -------- ----------
Net asset value, end of
period...................... $ 14.24 $ 13.07 $ 12.83 $ 15.21
------------ -------- -------- ----------
------------ -------- -------- ----------
Per share market value, end of
period...................... $ 12.25 $ 11.63 $ 11.50 $ 15.00
------------ -------- -------- ----------
------------ -------- -------- ----------
Total investment return (1)... 10.97% 13.65% (14.80)% 0.00%
------------ -------- -------- ----------
------------ -------- -------- ----------
Ratios and supplemental data:
Net assets, end of period
(000's)..................... $323,806 $297,087 $291,752 $ 345,755

Ratio of expenses to average
net assets.................. 1.44%* 1.46% 1.50% 1.41%*
Ratio of net investment income
to average net assets....... 10.08%* 10.76% 10.40% 4.60%*
Portfolio turnover rate....... 28% 71% 51% 1%
</TABLE>

- ------------------
* Annualized
+ Commencement of operations
(1) Total investment return on market value is calculated assuming a purchase of
one share at market value on the first day of each period reported,
reinvestment of all dividends and other distributions in accordance with the
Dividend Reinvestment Plan, and a sale at market value on the last day of
each period reported. Total investment returns for periods less than one
year have not been annualized. Total investment return does not reflect
brokerage commissions.

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------
General Information
- --------------------------------------------------------------------------------

THE FUND

Global High Income Dollar Fund Inc. (the 'Fund') is a non-diversified,
closed-end management investment company whose shares trade on the New York
Stock Exchange ('NYSE'). The Fund's primary investment objective is to achieve a
high level of current income; capital appreciation, to the extent consistent
with its primary objective, is a secondary objective in the selection of
investments. The Fund's investment adviser and administrator is Mitchell
Hutchins Asset Management Inc., a wholly owned subsidiary of PaineWebber
Incorporated, which has over $44.3 billion in assets under management as of
May 31, 1996.

SHAREHOLDER INFORMATION

The Fund's NYSE trading symbol is 'GHI'. Weekly comparative net asset value and
market price information about the Fund is published each Monday in The Wall
Street Journal and New York Times and each Saturday in Barron's, as well as in
numerous other newspapers.

An annual meeting of shareholders of the Fund was held on April 11, 1996. The
proposals and votes were as follows:

1. To elect ten members of its Board of Directors:

SHARES SHARES WITHHOLD
VOTED FOR AUTHORITY
---------- ---------------
<S> <C> <C>
Margo N. Alexander...................... 11,184,530 646,952
Richard Q. Armstrong.................... 11,190,672 640,810
E. Garrett Bewkes, Jr................... 11,189,315 642,167
Richard Burt............................ 11,186,428 645,054
Mary C. Farrell......................... 11,190,647 640,835
Meyer Feldberg.......................... 11,191,020 640,462
George W. Gowen......................... 11,180,505 650,977
Frederic V. Malek....................... 11,187,149 644,333
Carl W. Schafer......................... 11,185,888 645,594
John R. Torell III...................... 11,192,446 639,036
</TABLE>

2. Ratification of the selection of Price Waterhouse LLP as the independent
auditors for its current fiscal year:

<TABLE>
<CAPTION>
SHARES SHARES VOTED SHARES
VOTED FOR AGAINST ABSTAIN
- ---------- ------------ -------
<S> <C> <C>
11,179,017 224,106 428,359
</TABLE>

<PAGE>

GLOBAL HIGH INCOME DOLLAR FUND INC.

- --------------------------------------------------------------------------------

In addition, the following proposals were approved for the Fund:

3. Approval of the proposed changes to the Fund's fundamental investment
restrictions and policies:

<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED SHARES
FOR AGAINST ABSTAIN
--------- ------- -------
<S> <C> <C> <C> <C>
a. Modification of fundamental restriction
on concentration...................... 8,324,662 335,219 521,601
b. Modification of fundamental restriction
on senior securities and borrowing.... 8,267,693 347,149 566,640

c. Modification of fundamental restriction
on making loans....................... 8,081,154 596,060 504,268
d. Modification of fundamental restriction
on underwriting securities............ 8,329,134 350,126 502,222
e. Modification of fundamental restriction
on real estate investments............ 8,296,017 388,890 496,575
f. Modification of fundamental restriction
on investing in commodities........... 8,048,495 641,672 491,315
g. Elimination of fundamental restriction
on margin transactions................ 8,050,575 624,364 506,543
h. Elimination of fundamental restriction
on short sales........................ 8,254,228 422,011 505,242
i. Elimination of fundamental restriction
on investments in oil, gas and mineral
leases and programs................... 8,279,634 407,092 494,756
</TABLE>

Broker non-votes and abstentions are included within the 'Shares Withhold
Authority' and 'Shares Abstain' totals.

DISTRIBUTION POLICY

Under current policies of the Fund's board of directors, shareholders may
affirmatively elect to receive all dividends and other distributions in cash
paid by check mailed directly to the shareholders by PNC Bank, National
Association ('Transfer Agent'), as dividend disbursing agent. Under the Fund's
Dividend Reinvestment Plan (the 'Plan'), shareholders not making such election
and whose shares are registered in their own names will receive all such
distributions in additional Fund shares. Shareholders whose shares are held in
the name of a broker or nominee should contact such broker or nominee to
determine whether, or how, they may participate in the Plan.

The Transfer Agent will serve as agent for the shareholders in administering the
Plan. After the Fund declares a dividend or determines to make a capital gain
distribution, the Transfer Agent will, as agent for the participants, receive
the cash payment and use it to buy Fund shares in the open market, on the New
York Stock Exchange or elsewhere, for the participants' accounts.

<PAGE>

[This page intentionally left blank]

<PAGE>

- --------------------------------------

DIRECTORS

E. Garrett Bewkes, Jr.
Chairman

Margo N. Alexander
Richard Q. Armstrong
Richard Burt
Mary C. Farrell
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Carl W. Schafer
John R. Torell III

- --------------------------------------

PRINCIPAL OFFICERS

Margo N. Alexander
President

Victoria E. Schonfeld
Vice President

Stuart Waugh
Vice President

Dianne E. O'Donnell
Vice President and Secretary

Julian F. Sluyters
Vice President and Treasurer

- --------------------------------------

INVESTMENT ADVISER AND ADMINISTRATOR

Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019

- --------------------------------------

Notice is hereby given in accordance
with Section 23(c) of the Investment
Company Act of 1940 that from time to
time the Fund may purchase at market
prices shares of its common stock in
the open market.

The financial information included
herein is taken from the records of
the Fund without examination by
independent auditors who do not
express an opinion thereon.

This report is sent to the
shareholders of the Fund for their
information. It is not a prospectus,
circular or representation intended
for use in the purchase or sale of
shares of the Fund or of any
securities mentioned in the report.

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