MERRILL LYNCH
CORPORATE
HIGH YIELD
FUND, INC.
FUND LOGO
Semi-Annual Report
September 30, 1998
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 dated and are subject
to change.
Merrill Lynch
Corporate High Yield Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH CORPORATE HIGHYIELD FUND, INC.
TO OUR SHAREHOLDERS
We are pleased to provide you with this first semi-annual report for
Merrill Lynch Corporate High Yield Fund, Inc. The Fund's investment
objective is to seek to provide current income by investing in a
diversified portfolio of lower-rated corporate fixed-income
securities such as corporate bonds and notes, convertible securities
and preferred stocks. As a secondary objective, the Fund will seek
capital appreciation. In this and future reports to shareholders, we
will provide information on the Fund's performance, discuss our
investment strategies, list current portfolio investments and
highlight some of the Fund's holdings.
The High-Yield Market
A global revaluation of asset values occurred during the three
months ended September 30, 1998, and the high-yield market did not
escape the downdraft. Specifically, the unmanaged CS First Boston
High Yield Index registered a total return of -6.15% for the
September quarter. August was a particularly brutal month. As a
result, the Index had a total return of -6.79%, the worst
performance since the recession month of September 1990, when the
Index had a total return of -7.63%. A flight to quality by investors
has driven government bond yields to low levels not seen in more
than a generation. This movement in Treasury yields, combined with
the August/September high-yield selloff, resulted in a dramatic
widening of spreads in the high-yield market. Yield spreads widened
from 395 basis points (3.95%) at June 30, 1998 to 691 basis points
as of September 30, 1998.
This flight to quality was also evident within the high-yield market
as BB-rated securities had a total return of -1.05% as compared to a
total return of -6.13% for B-rated securities. The pressure was
severe in the zero coupon sector, where total returns were -10.69%
as compared to -5.24% for cash pay bonds. Every single sector in the
Index reported negative returns for the quarter, with the worst
performers being paper, metals and energy. The emerging markets
sector, which accounts for 5.9% of the Index, went into a free fall,
having a return of -21.47% for the September quarter (-16.6% for
August). The unmanaged JP Morgan Emerging Markets Bond Index (a
broader measure) had a total return of -11.57% for the same period (-
19.25% in August).
The upheaval in the high-yield market, which was stunning in its
swiftness and magnitude, appears to have been triggered by the
meltdown in Russia and the sharp selloff in the domestic equity
markets. The disclosure in September of huge losses at a prominent
hedge fund continued the turmoil and heightened investors' aversion
to risky asset classes. Mutual funds flows turned negative in August
as investors pulled approximately $1.5 billion out of high-yield
funds. This was the largest funds outflow since March 1994, when
nearly $1.8 billion exited the market. September was also a
disappointing month, as approximately $608 million left the high-
yield sector. The combination of these factors resulted in poor
liquidity, particularly during the latter part of August, as dealers
were reluctant to hold inventory. The new-issue market has dried up
almost completely, as only $2.4 billion of new debt came to market
in September.
One consequence of the lack of liquidity and negative investor
sentiment is that any piece of disappointing news--such as a
company's quarterly earnings coming in below expectations or a
downgrade in credit quality rating by one of the rating agencies--
can result in prices for that issuer's bonds declining rapidly.
Downward moves of five points or more have not been uncommon,
particularly for lower-rated credits.
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
Portfolio Strategy
During the Fund's initial investment phase, we attempted to select a
variety of issues that balance high current yield with total return
potential. We focused on companies with stable credit profiles,
dominant market positions, improving operating performance and
relatively unleveraged balance sheets. Examples of such issues held
by the Fund included Hollinger International, Inc., HMH Properties
Inc. and Fresenius Medical Capital Trust I.
To seek to enhance total return, but with value we believed will be
realized over a longer time horizon, we purchased bonds of selected
issuers in emerging markets, such as CSN Iron S.A., Telefonica de
Argentina S.A. and Grupo Televisa, S.A. de C.V. These issues have
been the most volatile element in the portfolio as these bonds react
to the unsettled conditions in the emerging markets. However, we
have attempted to invest in companies in strong financial and market
positions that we believe have good staying power over the long
term.
In June and July, we found value in the new-issue market as a heavy
underwriting calendar pushed up yields and widened spreads. We
purchased Aurora Foods Inc. (which is comprised of the food brands
Mrs. Butterworth, Duncan Hines and Van de Kamp's), Ball Corp. (the
largest can manufacturer in North America), Cumulus Media Inc. (a
radio broadcasting company), Tesoro Petroleum Corp., Ocean Energy
Inc. and Orange PLC (a leading UK-based wireless firm). During
August and September, which were marked by a severe lack of
liquidity in the high-yield market, we invested in what we believed
to be unfairly punished or overlooked bonds. Examples included bonds
of Corning Consumer Products Co., KinderCare Learning Centers, Inc.,
Kitty Hawk, Inc. and ALARIS Medical Systems Inc. (a manufacturer of
intravenous infusion therapy products).
As of September 30, 1998, non-US domiciled bonds totaled 17.9% of
the portfolio's net assets, with emerging market issues accounting
for 7.3% of net assets. At September 30, 1998, the average portfolio
maturity of the Fund was 8 years, and the average rating was B+.
Investment Outlook
There has been some deterioration in the overall environment as it
relates to credit quality during the September quarter. The US
economy is clearly decelerating, and a recession in 1999 is
possible. Certain industries, such as steel and paper, have
experienced product price erosion as the result of imported product
competition. While this is a negative, we believe that our holdings
in these areas are strong enough to absorb the pricing pressures for
a prolonged period. Our holdings in emerging markets are in strong
financial positions, and therefore we believe default risk on these
securities is low.
Given historically wide spread levels, the high-yield market appears
to be discounting both a dramatic slowdown in the US economy and an
increase in default statistics. At current levels, we believe the
market offers an exceptional value.
In Conclusion
We appreciate your investment in Merrill Lynch Corporate High Yield
Fund, Inc., and we look forward to assisting you with your financial
needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent T. Lathbury III)
Vincent T. Lathbury III
Senior Vice President and Portfolio Manager
November 12, 1998
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
PORTFOLIO INFORMATION
<TABLE>
<CAPTION>
Percent of
Ten Largest Corporate Holdings Net Assets
<S> <C> <C>
Call-Net Enterprises Inc. The company is the largest alternative provider of long distance telephone 2.4%
services in Canada, marketing under the brand name Sprint Canada. Sprint
Communications Company L.P., the third-largest long distance services
carrier in the United States, owns approximately 25% of the company's shares.
Fresenius Medical Fresenius Medical Capital Trust is the world's largest integrated provider of 1.9
Capital Trust I dialysis products and services. Its 910 dialysis centers treat 68,000
patients worldwide, including approximately 23% of the US dialysis patients.
The company also is the world's second-largest manufacturer and distributor
of dialysis equipment and related supplies, selling products in more than
110 companies.
Corning Consumer Corning Consumer Products is a leading manufacturer and marketer of bakeware, 1.9
Products Co. dinnerware and rangetop cookware, with one of the broadest and best recognized
collections of brands in the household products industry, including CorningWare,
Pyrex and Corelle.
Time-Warner Time-Warner Telecom, a privately held company, is a leading facilities- 1.8
Telecom LLC based competitive local exchange carrier offering business telephony services,
primarily to medium and large businesses and other carriers.
HMH Properties Inc. HMH, a wholly-owned subsidiary of Host Marriott Corporation, owns or holds 1.8
controlling interests in 69 full-service hotels, comprising the majority of
Host Marriott's lodging properties. The properties are generally operated under
the Marriott and Ritz-Carlton brand names. Host Marriott manages most of the
properties for fees based on revenues or operating profit.
Comcast Cellular Comcast Cellular, a subsidiary of Comcast Corporation, is one of the largest 1.6
Communications, Inc. independent operators of cellular telephone systems in the country covering
the Philadelphia area, Delaware and parts of New Jersey. Last year, the company
completed its digital upgrade. Currently, about 25% of Comcast's minutes are
carried on the digital side.
PSINet Inc. PSINet is an internet service provider. The company's customer base includes 1.6
Fortune 1000 companies, small and medium-size companies and other internet
service providers.
Intermedia Intermedia Communications offers voice and data, local and long distance, 1.6
Communications Inc. and advanced network access services to business and government customers.
Ocean Energy Inc. Ocean Energy is one of the largest independent oil and gas exploration and 1.6
production companies in the United States. The company has estimated proved
reserves of 270 million barrels of oil equivalent and the company has a
diverse portfolio of both domestic and international properties.
KinderCare Learning KinderCare Learning Centers is the largest provider of for-profit preschool 1.5
Centers, Inc. educational and child care services in the United States, operating
approximately 1,147 centers with licensed capacity for 143,000 children.
The company provides center-based preschool educational and child care services
five days a week throughout the year to children between the ages of six
weeks and 12 years.
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
PORTFOLIO INFORMATION (concluded)
As of September 30, 1998
Quality Profile* Percent of
S&P Rating/Moody's Rating Long-Term Investments
BBB/Baa 3.0%
BB/Ba 29.7
B/B 63.8
NR (Not Rated) 3.5
[FN]
*In cases when bonds are rated differently by Standard & Poor's
Corporation and Moody's Investors Service, Inc., bonds are
categorized according to the higher of the two ratings.
Percent of
Five Largest Industries Net Assets
Health Services 9.0%
Energy 7.8
Telephone--Competitive Local Exchange Carriers 6.7
Media & Communications--International 5.1
Computer Services--Electronics 4.8
Geographic Profile Percent of
Top Five Foreign Countries* Net Assets
Canada 4.3%
United Kingdom 3.6
Argentina 3.0
Mexico 1.8
Brazil 1.5
[FN]
*All holdings are denominated in US dollars.
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
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.
* 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 classes of shares automatically
convert to Class D Shares after approximately 10 years. (There is no
initial sales charge for automatic share conversions.)
* 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. Figures shown in the "Recent Performance
Results" and "Aggregate Total Return" tables assume reinvestment of
all dividends and capital gains distributions at net asset value on
the payable date. 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.
Aggregate Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Inception (5/01/98)
through 9/30/98 -6.09% -9.84%
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Inception (5/01/98)
through 9/30/98 -6.38% -10.01%
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (5/01/98)
through 9/30/98 -6.40% -7.31%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (5/01/98)
through 9/30/98 -6.18% -9.94%
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
PERFORMANCE DATA (concluded)
<TABLE>
Recent Performance Results
<CAPTION>
Standardized
3 Month Since Inception 30-day Yield
Total Return Total Return As of 9/30/98
<S> <C> <C> <C>
ML Corporate High Yield Fund, Inc. Class A Shares* -6.13% - 6.09% 9.44%
ML Corporate High Yield Fund, Inc. Class B Shares* -6.31 - 6.38 9.33
ML Corporate High Yield Fund, Inc. Class C Shares* -6.32 - 6.40 9.29
ML Corporate High Yield Fund, Inc. Class D Shares* -6.19 - 6.18 9.50
Merrill Lynch High Yield Master Index** -3.58 - 2.49
CS First Boston High Yield Index** -6.15 - 5.67
Ten-Year US Treasury Securities*** +9.20 +11.81
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included. Total
investment returns are based on changes in net asset values for the
periods shown, and assume reinvestment of all dividends and capital
gains distributions at net asset value on the payable date. The Fund
commenced operations on 5/01/98.
**Unmanaged. These market-weighted Indexes mirror the high-yield
debt market of securities rated BBB or lower. Since inception total
return for Merrill Lynch High Yield Master Index is from 5/01/98 to
9/30/98. Since inception total return for CS First Boston High Yield
Index is from 4/30/98 to 9/30/98.
***Since inception total return is from 4/30/98 to 9/30/98.
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
S&P Moody's Face Value
Industries Rating Rating Amount Bonds Cost (Note 1a)
Bonds
<S> <S> <S> <C> <S> <C> <C>
Aerospace--1.1% B+ B1 $ 5,000,000 Kitty Hawk, Inc., 9.95% due 11/15/2004 $ 4,893,750 $ 5,075,000
Airlines--1.5% B+ B1 6,200,000 USAir Inc., 9.625% due 2/01/2001 6,479,000 6,432,500
Automotive--1.7% B B2 5,000,000 Collins & Aikman Corp., 11.50% due 4/15/2006 5,081,250 5,275,000
B+ B2 2,500,000 Venture Holdings Trust, 9.50% due 7/01/2005 2,560,938 2,437,500
-------------- --------------
7,642,188 7,712,500
Broadcasting-- CCC+ B3 3,000,000 Cumulus Media Inc., 10.375% due 7/01/2008 3,000,000 3,045,000
Radio & LIN Television Corp. (b):
Television-- B- B3 5,000,000 8.375% due 3/01/2008 4,861,250 4,850,000
3.3% B- B3 4,000,000 9.945% due 3/01/2008 (a) 2,609,667 2,630,000
B- B3 4,000,000 Salem Communications Corp., 9.50% due
10/01/2007 3,920,000 4,040,000
-------------- --------------
14,390,917 14,565,000
Building B+ B1 5,000,000 Nortek Inc., 8.875% due 8/01/2008 (b) 4,982,050 4,850,000
Materials--1.1%
Cable-- BB- Ba3 4,500,000 Century Communications Corporation, 9.75%
Domestic--1.1% due 2/15/2002 4,725,000 4,826,250
Cable-- B- B3 5,000,000 NTL Inc., 10% due 2/15/2007 4,862,500 5,075,000
International-- B B3 7,500,000 Supercanal Holdings S.A., 11.50% due
4.7% 5/15/2005 (b) 6,500,000 4,537,500
B+ B1 7,000,000 TeleWest Communications PLC, 10.793% due
10/01/2007 (a) 5,722,442 5,810,000
B B3 11,000,000 United International Holdings, Inc., 12.37%
due 2/15/2008 (a) 6,220,254 5,445,000
-------------- --------------
23,305,196 20,867,500
Child Care-- B- B3 7,000,000 KinderCare Learning Centers, Inc., 9.50%
1.7% due 2/15/2009 6,932,500 6,755,000
B- B3 1,000,000 La Petite Academy/LPA Holdings, Series B,
10% due 5/15/2008 1,000,000 975,000
-------------- --------------
7,932,500 7,730,000
Computer B Ba3 5,000,000 Advanced Micro Devices, Inc., 11% due
Services-- 8/01/2003 5,225,000 5,075,000
Electronics-- B B2 6,000,000 Hadco Corp., 9.50% due 6/15/2008 (b) 5,893,000 5,310,000
4.8% B- B3 7,000,000 PSINet Inc., Series B, 10% due 2/15/2005 7,070,000 7,052,500
B- B2 6,000,000 Zilog Inc., Series B, 9.50% due 3/01/2005 4,732,500 3,810,000
-------------- --------------
22,920,500 21,247,500
Conglomerates-- B- B3 5,000,000 Eagle-Picher Industries, 9.375% due 3/01/2008 4,600,000 4,600,000
1.9% BB- NR* 5,000,000 Voto-Votorantim S.A., 8.50% due 6/27/2005 (b) 4,638,750 3,837,500
-------------- --------------
9,238,750 8,437,500
Consumer B B3 10,000,000 Corning Consumer Products Co., 9.625% due
Products--1.9% 5/01/2008 (b) 9,428,219 8,200,000
Consumer B- NR* 3,500,000 AP Holdings Inc., 11.174% due 3/15/2008 (a) 2,164,962 1,715,000
Services--0.4%
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Value
Industries Rating Rating Amount Bonds Cost (Note 1a)
Bonds (continued)
<S> <S> <S> <C> <S> <C> <C>
Energy--7.8% B+ B1 $ 4,720,000 Chesapeake Energy Corporation, 9.625% due
5/01/2005 $ 4,784,350 $ 4,177,200
BBB- Ba3 5,000,000 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A., 9% due 1/30/2004 (b) 5,085,938 4,575,000
BB- B1 7,000,000 Ocean Energy Inc., 8.375% due 7/01/2008 (b) 6,915,490 6,807,500
B- B3 5,000,000 Ocean Rig Norway AS, 10.25% due 6/01/2008 (b) 4,985,000 3,725,000
B+ B1 5,000,000 Parker Drilling Co., 9.75% due 11/15/2006 5,125,000 4,650,000
B- B3 2,500,000 Southwest Royalties Inc., 10.50% due 10/15/2004 2,025,000 1,337,500
BB- B1 5,000,000 Tesoro Petroleum Corp., Series B, 9% due
7/01/2008 4,971,450 4,850,000
B+ Caa2 4,000,000 TransAmerican Energy Corp., Series B, 13.867%
due 6/15/2002 (a)(b) 3,556,768 1,980,000
B- B2 3,000,000 United Refining Co., 10.75% due 6/15/2007 2,865,000 2,415,000
-------------- --------------
40,313,996 34,517,200
Entertainment-- B+ B1 3,000,000 Intrawest Corp., 9.75% due 8/15/2008 2,953,230 3,000,000
2.1% B B2 6,000,000 Regal Cinemas, Inc., 9.50% due 6/01/2008 (b) 5,989,860 6,030,000
-------------- --------------
8,943,090 9,030,000
Financial B B2 5,000,000 Amresco, Inc., Series 98-A, 9.875% due
Services--1.7% 3/15/2005 5,090,000 4,050,000
BBB- Baa1 4,000,000 SB Treasury Company LLC, 9.40% due
12/29/2049 (b) 4,005,000 3,365,968
-------------- --------------
9,095,000 7,415,968
Food & B+ B1 5,250,000 Aurora Foods Inc., Series B, 8.75% due
Beverage--1.2% 7/01/2008 5,254,375 5,433,750
Gaming--0.8% CCC+ B3 2,000,000 Planet Hollywood International, 12% due
4/01/2005 1,970,000 1,130,000
BB- B2 3,000,000 Trump Atlantic City Associates/Funding Inc.,
11.25% due 5/01/2006 2,970,960 2,490,000
-------------- --------------
4,940,960 3,620,000
Health B- Caa1 10,500,000 ALARIS Medical Systems Inc., 14.993% due
Services--9.0% 8/01/2008 (a)(b) 4,530,921 4,672,500
B+ Ba3 5,000,000 Beverly Enterprises, Inc., 9% due 2/15/2006 5,237,500 5,025,000
B- B2 6,000,000 Extendicare Health Services, 9.35% due
12/15/2007 5,972,500 5,640,000
B+ Ba3 9,000,000 Fresenius Medical Capital Trust I, 7.875% due
2/01/2008 8,580,000 8,325,000
B- B3 5,500,000 Magellan Health Services Inc., 9% due
2/15/2008 (b) 5,465,625 4,702,500
B B2 6,000,000 Phar-Merica Inc., 8.375% due 4/01/2008 5,747,500 5,490,000
BB- Ba3 5,500,000 Tenet Healthcare Corp., 8.125% due
12/01/2008 (b) 5,484,975 5,596,250
-------------- --------------
41,019,021 39,451,250
Hotels--3.1% BB Ba2 8,000,000 HMH Properties Inc., 7.875% due 8/01/2008 7,930,330 7,920,000
BB- B2 7,000,000 Signature Resorts, Inc., 9.25% due 5/15/2006 6,968,750 5,635,000
-------------- --------------
14,899,080 13,555,000
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Value
Industries Rating Rating Amount Bonds Cost (Note 1a)
Bonds (continued)
<S> <S> <S> <C> <S> <C> <C>
Industrial B B3 $ 5,000,000 Anthony Crane Rentals, 10.375% due
Services--2.8% 8/01/2008 (b) $ 5,011,250 $ 4,725,000
B B3 4,000,000 Neff Corporation, 10.25% due 6/01/2008 4,000,000 3,940,000
Thermadyne Holdings Corp.:
CCC+ B3 3,000,000 9.875% due 6/01/2008 2,976,420 2,760,000
CCC+ Caa1 2,000,000 12.50% due 6/01/2008 (a) 1,135,710 950,000
-------------- --------------
13,123,380 12,375,000
Media & Call-Net Enterprises Inc.:
Communi- BB- B1 3,000,000 8% due 8/15/2008 2,986,260 2,850,000
cations-- BB- B1 13,000,000 8.94% due 8/15/2008 (a) 8,489,120 7,605,000
International-- BB Ba2 5,000,000 Grupo Televisa, S.A. de C.V., 11.875% due
5.1% 5/15/2006 4,610,000 4,562,500
B+ B2 5,000,000 Impsat Corp., 12.375% due 6/15/2008 (b) 5,000,000 3,675,000
BBB- Ba3 4,000,000 Telefonica de Argentina S.A., 11.875% due
11/01/2004 4,400,000 3,940,000
-------------- --------------
25,485,380 22,632,500
Metals & B- B3 4,000,000 Great Lakes Carbon Corp., 10.25% due
Mining--4.1% 5/15/2008 (b) 4,000,000 3,840,000
CCC+ B2 5,000,000 Kaiser Aluminum & Chemical Corp., 12.75% due
2/01/2003 4,902,500 4,875,000
B B2 3,000,000 Metals USA Inc., 8.625% due 2/15/2008 2,921,250 2,655,000
B B3 5,000,000 Ormet Corporation, 11% due 8/15/2008 (b) 5,000,000 4,650,000
B B2 2,000,000 P & L Coal Holdings Corp., 9.625% due
5/15/2008 (b) 1,971,250 2,010,000
-------------- --------------
18,795,000 18,030,000
Packaging--1.4% BB- B1 6,000,000 Ball Corp., 8.25% due 8/01/2008 (b) 6,000,000 6,195,000
Paper & Forest CCC+ Caa1 2,000,000 APP International Finance Co., 11.75% due
Products--0.7% 10/01/2005 1,870,000 1,184,529
CCC+ Caa1 4,000,000 Pindo Deli Finance Mauritius, 10.75% due
10/01/2007 (b) 3,112,500 1,700,000
-------------- --------------
4,982,500 2,884,529
Product B- B3 7,000,000 US Office Products Co., 9.75% due
Distribution-- 6/15/2008 (b) 6,742,960 6,055,000
2.5% B B2 5,000,000 Wesco Distribution Inc., Series B, 9.125%
due 6/01/2008 4,925,000 4,762,500
-------------- --------------
11,667,960 10,817,500
Publishing & Hollinger International, Inc.:
Printing--2.2% BB- B1 1,500,000 9.25% due 2/01/2006 1,500,000 1,548,750
BB- B1 3,000,000 9.25% due 3/15/2007 3,142,500 3,090,000
BB- Ba3 5,000,000 Primedia Inc., 7.625% due 4/01/2008 4,725,000 4,875,000
-------------- --------------
9,367,500 9,513,750
Real Estate-- BB- Ba3 3,000,000 Forest City Enterprises Inc., 8.50% due
0.7% 3/15/2008 3,015,938 2,955,000
Steel--1.7% NR* B2 5,000,000 CSN Iron S.A., 9.125% due 6/01/2007 (b) 4,507,750 2,887,500
B B2 5,000,000 Weirton Steel Inc., 11.375% due 7/01/2004 5,412,500 4,550,000
-------------- --------------
9,920,250 7,437,500
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Value
Industries Rating Rating Amount Bonds Cost (Note 1a)
Bonds (concluded)
<S> <S> <S> <C> <S> <C> <C>
Telephone-- B B2 $ 7,000,000 Intermedia Communications Inc., Series B,
Competitive 8.60% due 6/01/2008 $ 6,900,000 $ 6,982,500
Local
Exchange B B3 6,000,000 Level 3 Communications Inc., 9.125% due
Carriers--6.7% 5/01/2008 5,805,000 5,670,000
B B3 8,000,000 Metronet Communications, 9.95% due
6/15/2008 (a) 5,064,723 4,440,000
B- B3 5,000,000 RSL Communications PLC, 9.125% due
3/01/2008 4,673,750 4,300,000
B B3 8,000,000 Time-Warner Telecom LLC, 9.75% due 7/15/2008 7,975,000 8,080,000
-------------- --------------
30,418,473 29,472,500
Textiles--2.4% B B3 6,000,000 Galey & Lord Inc., 9.125% due 3/01/2008 5,926,250 5,280,000
BB Ba3 5,000,000 Westpoint Stevens Inc., 7.875% due 6/15/2008 4,940,000 5,112,500
-------------- --------------
10,866,250 10,392,500
Transportation BB Ba3 3,000,000 GS Superhighway Holdings, 10.25% due
- --2.3% 8/15/2007 2,460,000 1,117,500
BB- B1 2,000,000 Hvide Marine Inc., 8.375% due 2/15/2008 1,960,000 1,610,000
BB Ba2 4,000,000 Stena AB, 10.50% due 12/15/2005 4,365,000 4,110,000
TFM, S.A. de C.V.:
B+ B2 2,000,000 10.25% due 6/15/2007 2,045,000 1,665,000
B+ B2 3,000,000 11.903% due 6/15/2009 (a) 1,943,602 1,477,500
-------------- --------------
12,773,602 9,980,000
Waste B+ B2 4,000,000 LES, Inc., 9.25% due 6/01/2008 (b) 4,000,000 4,040,000
Management--
0.9%
Wireless BB+ Ba3 7,000,000 Comcast Cellular Communications, Inc., 9.50%
Communications-- due 5/01/2007 7,223,750 7,210,000
Domestic Paging
& Cellular--1.6%
Wireless CCC+ Caa1 7,000,000 Nextel International Inc., 11.656% due
Communications 4/15/2008 (a) 4,259,374 2,975,000
- --International B+ Ba3 5,000,000 Orange PLC, 8% due 8/01/2008 4,961,900 4,875,000
- --1.8% -------------- --------------
9,221,274 7,850,000
Total Investments in Bonds--87.8% 419,429,811 386,467,697
Shares
Held
Preferred Stocks
Broadcasting-- 3,000 Cumulus Media Inc. (c) 3,000,000 2,985,000
Radio & Television--0.7%
Product Distribution--0.8% 51,406 Nebco Evans Holding Co. (c) 5,206,856 3,354,241
Wireless Communications-- 2,571 Rural Cellular Corp. (c) 2,572,242 2,333,182
Domestic Paging & Cellular--0.5%
Total Investments in Preferred Stocks--2.0% 10,779,098 8,672,423
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Face Value
Industries Amount Issue Cost (Note 1a)
Short-Term Securities
<S> <C> <S> <C> <C>
Commercial $ 4,674,000 General Motors Acceptance Corp., 5.88%
Paper**--5.6% due 10/01/1998 $ 4,674,000 $ 4,674,000
10,000,000 International Securitization Corporation,
5.55% due 10/13/1998 9,981,500 9,981,500
10,000,000 Monsanto Company, 5.45% due 11/12/1998 9,936,417 9,936,417
-------------- --------------
24,591,917 24,591,917
US Government 20,000,000 Federal Home Loan Mortgage Corp.,
Agency 5.42% due 10/02/1998 19,996,989 19,996,989
Obligations**--
4.5%
Total Investments in
Short-Term Securities--10.1% 44,588,906 44,588,906
Total Investments--99.9% $ 474,797,815 439,729,026
==============
Other Assets Less Liabilities--0.1% 543,201
--------------
Net Assets--100.0% $ 440,272,227
==============
<FN>
*Not Rated.
**Commercial Paper and certain US Government Agency Obligations are
traded on a discount basis; the interest rates shown reflect the
discount rates paid at the time of purchase by the Portfolio.
(a)Represents a zero coupon or step bond; the interest rate shown is
the effective yield at the time of purchase by the Portfolio.
(b)The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
(c)Represents a pay-in-kind security which may pay
interest/dividends in additional face/shares.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of September 30, 1998
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$474,797,815) (Note 1a) $ 439,729,026
Cash 904
Receivables:
Interest $ 9,855,405
Capital shares sold 6,610,312
Securities sold 1,408,264
Dividends 209,981 18,083,962
--------------
Deferred organization expenses (Note 1e) 61,000
Prepaid expenses and other assets (Note 1e) 112,741
--------------
Total assets 457,987,633
--------------
Liabilities: Payables:
Securities purchased 15,234,281
Dividends to shareholders (Note 1f) 1,312,641
Capital shares redeemed 796,314
Distributor (Note 2) 227,401
Investment adviser (Note 2) 83,769 17,654,406
--------------
Accrued expenses 61,000
--------------
Total liabilities 17,715,406
--------------
Net Assets: Net assets $ 440,272,227
==============
Capital Class A Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized $ 110,046
Class B Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 3,385,845
Class C Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 795,141
Class D Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 573,082
Paid-in capital in excess of par 471,790,578
Accumulated realized capital losses on investments--net (1,313,676)
Unrealized depreciation on investments--net (35,068,789)
--------------
Net assets $ 440,272,227
==============
Net Asset Class A--Based on net assets of $9,959,207 and 1,100,459
Value: shares outstanding $ 9.05
==============
Class B--Based on net assets of $306,469,462 and 33,858,447
shares outstanding $ 9.05
==============
Class C--Based on net assets of $71,970,099 and 7,951,415
shares outstanding $ 9.05
==============
Class D--Based on net assets of $51,873,459 and 5,730,823
shares outstanding $ 9.05
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Period May 1, 1998++ to September 30, 1998
<S> <S> <C> <C>
Investment Interest and discount earned $ 10,857,519
Income Dividends 398,063
(Note 1d): Other 5,280
--------------
Total income 11,260,862
--------------
Expenses: Investment advisory fees (Note 2) $ 737,522
Account maintenance and distribution fees--Class B (Note 2) 628,214
Account maintenance and distribution fees--Class C (Note 2) 178,002
Registration fees (Note 1e) 55,030
Transfer agent fees--Class B (Note 2) 44,041
Account maintenance fees--Class D (Note 2) 36,767
Accounting services (Note 2) 12,743
Transfer agent fees--Class C (Note 2) 11,796
Custodian fees 9,374
Directors' fees and expenses 8,269
Professional expenses 8,075
Printing and shareholder reports 6,039
Transfer agent fees--Class D (Note 2) 5,917
Amortization of organization expenses (Note 1e) 3,617
Pricing services 1,732
Transfer agent fees--Class A (Note 2) 866
Other 3,108
--------------
Total expenses 1,751,112
Reimbursement of expenses (Note 2) (524,888)
--------------
Total expenses after reimbursement 1,226,224
--------------
Investment income--net 10,034,638
--------------
Realized & Realized loss on investments--net (1,313,676)
Unrealized Loss on Unrealized depreciation on investments--net (35,068,789)
Investments-- --------------
Net (Notes 1b, Net Decrease in Net Assets Resulting from Operations $ (26,347,827)
1d & 3): ==============
<FN>
++Commencement of operations.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
For the Period
May 1, 1998++ to
September 30,
Increase (Decrease) in Net Assets: 1998
<S> <S> <C>
Operations: Investment income--net $ 10,034,638
Realized loss on investments--net (1,313,676)
Unrealized depreciation on investments--net (35,068,789)
--------------
Net decrease in net assets resulting from operations (26,347,827)
--------------
Dividends to Investment income--net:
Shareholders Class A (195,180)
(Note 1f): Class B (6,786,512)
Class C (1,786,039)
Class D (1,266,907)
--------------
Net decrease in net assets resulting from dividends to shareholders (10,034,638)
--------------
Capital Share Net increase in net assets derived from capital share transactions 476,554,692
Transactions --------------
(Note 4):
Net Assets: Total increase in net assets 440,172,227
Beginning of period 100,000
--------------
End of period $ 440,272,227
==============
<FN>
++Commencement of operations.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Period
May 1, 1998++ to September 30, 1998
Increase (Decrease) in Net Asset Value: Class A Class B Class C Class D
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00
Operating --------- --------- --------- ---------
Performance: Investment income--net .36 .33 .32 .35
Realized and unrealized loss on investments--net (.95) (.95) (.95) (.95)
--------- --------- --------- ---------
Total from investment operations (.59) (.62) (.63) (.60)
--------- --------- --------- ---------
Less dividends from investment income--net (.36) (.33) (.32) (.35)
--------- --------- --------- ---------
Net asset value, end of period $ 9.05 $ 9.05 $ 9.05 $ 9.05
========= ========= ========= =========
Total Investment Based on net asset value per share (6.09%)+++ (6.38%)+++ (6.40%)+++ (6.18%)+++
Return:** ========= ========= ========= =========
Ratios to Average Expenses, net of reimbursement .32%* 1.06%* 1.11%* .55%*
Net Assets: ========= ========= ========= =========
Expenses .72%* 1.49%* 1.54%* .98%*
========= ========= ========= =========
Investment income--net 8.87%* 8.10%* 8.03%* 8.61%*
========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 9,959 $ 306,469 $ 71,970 $ 51,874
Data: ========= ========= ========= =========
Portfolio turnover 16.68% 16.68% 16.68% 16.68%
========= ========= ========= =========
<FN>
*Annualized.
**Total investment returns exclude the effect of sales loads.
++Commencement of operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Corporate High Yield Fund, Inc. (the "Fund") is
registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. These unaudited
financial statements reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the results
for the interim period presented. All such adjustments are of a
normal recurring nature. Prior to commencement of operations on May
1, 1998, the Fund had no operations other than those relating to
organizational matters and the issue of 10,000 capital shares of the
Fund to Fund Asset Management, L.P. ("FAM") for $100,000. The Fund
offers four classes of shares under the Merrill Lynch Select
Pricing SM System. Shares of Class A and Class D are sold with a
front-end sales charge. Shares of Class B and Class C may be subject
to a contingent deferred sales charge. All classes of shares have
identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Class B, Class C and Class D
Shares bear certain expenses related to the account maintenance of
such shares, and Class B and Class C Shares also bear certain
expenses related to the distribution of such shares. Each class has
exclusive voting rights with respect to matters relating to its
account maintenance and distribution expenditures. The following is
a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments--Portfolio securities which are traded
on stock exchanges are valued at the last sale price as of the close
of business on the day the securities are being valued, or lacking
any sales, at the mean between closing bid and asked prices.
Securities traded in the over-the-counter market are valued at the
mean of the most recent bid and ask prices as obtained from one or
more dealers that make markets in the securities. Portfolio
securities which are traded both in the over-the-counter market and
on a stock exchange are valued according to the broadest and most
representative market, and it is expected that for debt securities
this ordinarily will be the over-the-counter market. Short-term
securities are valued at amortized cost, which approximates market
value.
Options written or purchased are valued at the last sale price in
the case of exchange-traded options. In the case of options traded
in the over-the-counter market, valuation is the last asked price
(options written) or the last bid price (options purchased).
Financial futures contracts and options thereon, which are traded on
exchanges, are valued at their closing price at the close of such
exchanges. Securities and assets for which market quotations are not
readily available are valued at fair value as determined in good
faith by or under the direction of the Board of Directors of the
Fund, including valuations furnished by a pricing service retained
by the Fund which may use a matrix system for valuations.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the equity, debt and currency
markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.
* Options--The Fund is authorized to purchase and write call and put
options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written.
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or loss or gain to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Dividend income is recorded on the ex-
dividend dates. Interest income (including amortization of discount)
is recognized on the accrual basis. Realized gains and losses on
security transactions are determined on the identified cost basis.
(e) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are amortized on a straight-line
basis over a period not exceeding five years. Prepaid registration
fees are charged to expense as the related shares are issued.
(f) Dividends and distributions--Dividends from net investment
income are declared daily and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with FAM.
The general partner of FAM is Princeton Services, Inc. ("PSI"), an
indirect wholly-owned subsidiary of ML & Co., which is the limited
partner. The Fund has also entered into a Distribution Agreement and
Distribution Plans with Merrill Lynch Funds Distributor. ("MLFD" or
"Distributor"), a division of Princeton Funds Distributor, Inc.
("PFD"), which is a wholly-owned subsidiary of Merrill Lynch Group,
Inc.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee of 0.60%, on an annual basis,
of the average daily value of the Fund's net assets. For the period
May 1, 1998 to September 30, 1998, FAM earned fees of $737,522, of
which $501,272 was voluntarily waived. FAM also reimbursed the Fund
additional expenses of $23,616.
Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Company Act of 1940, the Fund
pays the Distributor ongoing account maintenance and distribution
fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares of the
Portfolio as follows:
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.50%
Class C 0.25% 0.55%
Class D 0.25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the period May 1, 1998 to September 30, 1998, MLFD earned
underwriting discounts and MLPF&S earned dealer concessions on sales
of the Fund's Class A and Class D Shares as follows:
MLFD MLPF&S
Class A $ 1,075 $ 9,705
Class D $30,495 $358,897
For the period May 1, 1998 to September 30, 1998, MLPF&S received
contingent deferred sales charges of $94,007 and $16,267 relating to
transactions in Class B and Class C Shares of the Fund,
respectively.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, PSI, PFD, FDS, and/or ML & Co.
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
NOTES TO FINANCIAL STATEMENTS (concluded)
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the period May 1, 1998 to September 30, 1998 were $471,056,455
and $40,700,012, respectively.
Net realized losses for the period May 1, 1998 to September 30, 1998
and net unrealized loss as of September 30, 1998 were as follows:
Realized Unrealized
Losses Losses
Long-term investments $(1,313,676) $ (35,068,789)
----------- -------------
Total $(1,313,676) $ (35,068,789)
=========== =============
As of September 30, 1998, net unrealized depreciation for Federal
income tax purposes aggregated $35,068,789, of which $2,313,279
related to appreciated securities and $37,382,068 related to depre-
ciated securities. The aggregate cost of investments at September
30, 1998 for Federal income tax purposes was $474,797,815.
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions
was $476,554,692 for the period May 1, 1998 to September 30, 1998.
Transactions in capital shares for each class were as follows:
Class A Shares for the
Period May 1, 1998++ to Dollar
September 30, 1998 Shares Amount
Shares sold 1,377,968 $ 13,249,719
Shares issued to shareholders
in reinvestment of dividends 11,055 104,893
------------- --------------
Total issued 1,389,023 13,354,612
Shares redeemed (291,064) (2,749,855)
------------- --------------
Net increase 1,097,959 $ 10,604,757
============= ==============
[FN]
++Prior to May 1, 1998 (commencement of operations), the Fund issued
2,500 shares to MLAM for $25,000.
Class B Shares for the
Period May 1, 1998++ to Dollar
September 30, 1998 Shares Amount
Shares sold 36,511,176 $ 356,347,625
Shares issued to shareholders
in reinvestment of dividends 287,362 2,732,619
------------- --------------
Total issued 36,798,538 359,080,244
Automatic conversion of
shares (12,516) (122,364)
Shares redeemed (2,930,075) (27,602,873)
------------- --------------
Net increase 33,855,947 $ 331,355,007
============= ==============
[FN]
++Prior to May 1, 1998 (commencement of operations), the Fund issued
2,500 shares to MLAM for $25,000.
Class C Shares for the
Period May 1, 1998++ to Dollar
September 30, 1998 Shares Amount
Shares sold 8,870,676 $ 87,027,747
Shares issued to shareholders
in reinvestment of dividends 92,191 879,129
------------- --------------
Total issued 8,962,867 87,906,876
Shares redeemed (1,013,952) (9,585,059)
------------- --------------
Net increase 7,948,915 $ 78,321,817
============= ==============
[FN]
++Prior to May 1, 1998 (commencement of operations), the Fund issued
2,500 shares to MLAM for $25,000.
Class D Shares for the
Period May 1, 1998++ to Dollar
September 30, 1998 Shares Amount
Shares sold 6,463,590 $ 63,296,222
Automatic conversion of
shares 12,516 122,364
Shares issued to shareholders
in reinvestment of dividends 54,778 519,406
------------- --------------
Total issued 6,530,884 63,937,992
Shares redeemed (802,561) (7,664,881)
------------- --------------
Net increase 5,728,323 $ 56,273,111
============= ==============
[FN]
++Prior to May 1, 1998 (commencement of operations), the Fund issued
2,500 shares to MLAM for $25,000.
Merrill Lynch Corporate High Yield Fund, Inc.
September 30, 1998
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
Vincent T. Lathbury III, Senior Vice President
Joseph T. Monagle Jr., Senior Vice President
Donald C. Burke, Vice President
Aldona Schwartz, Vice President
Gerald M. Richard, Treasurer
Philip M. Mandel, Secretary
Custodian
State Street Bank and Trust Company
One Heritage Drive, P2N
North Quincy, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
