MERRILL LYNCH
AMERICAS INCOME
FUND, INC.
FUND LOGO
Semi-Annual Report
June 30, 1995
The Fund is leveraged to provide shareholders with apotentially
higher rate of return. However, leveraging may exaggerate changes in
the net asset value of the Fund's shares and in the yield on the
Fund's portfolio.
<PAGE>
Investing in emerging market securities involves a number of risk
factors and special considerations, including restrictions on
foreign investments and on repatriation of capital invested in
emerging markets, currency fluctuations, and potential price
volatility and less liquidity of securities traded in emerging
markets. In addition, there may be less publicly available
information about the issuers of securities, and such issuers may
not be subject to accounting, auditing and financial reporting
standards and requirements comparable to those to which US companies
are subject. Therefore, the Fund is designed as a long-term
investment for investors capable of assuming the risks of investing
in emerging markets. The Fund should be considered as a vehicle for
diversification and not as a complete investment program. Please
refer to the prospectus for details.
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.
Merrill Lynch
Americas Income Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MERRILL LYNCH AMERICAS INCOME FUND, INC.
The Benefits and
Risks of
Leveraging
The Fund is authorized to borrow money from banks in an amount up to
33 1/3% of the Fund's total assets (including the amount borrowed),
less all liabilities and indebtedness other than the bank borrowing.
The Fund is also authorized to borrow an additional 5% of its total
assets without regard to this limitation for temporary purposes.
Borrowings by the Fund create an opportunity for greater total
return but, at the same time, increase exposure to capital risk. For
example, leveraging may exaggerate changes in the net asset value of
Fund shares and in the yield on the Fund's portfolio. Although the
principal of such borrowings will be fixed, the Fund's assets may
change in value during the time the borrowings are outstanding.
Borrowing will create interest expenses for the Fund which can
exceed the income from the assets retained. To the extent the income
derived from securities purchased with borrowed funds exceeds the
interest the Fund will have to pay, the Fund's net income will be
greater than if borrowing were not used. Conversely, if the income
from the assets retained with borrowed funds is not sufficient to
cover the cost of borrowing, the net income of the Fund will be less
than if borrowing were not used, and therefore the amount available
for distribution to shareholders as dividends will be reduced.
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Joseph T. Monagle, Jr., Senior Vice President
Alex V. Bouzakis, Vice President
Donald C. Burke, Vice President
Paolo H. Valle, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
DEAR SHAREHOLDER
During the second quarter of 1995, the market for emerging market
debt experienced a good recovery initiated by the implementation of
a credible economic plan in Mexico, and by the unveiling of a large
financing package to support the Convertibility Plan in Argentina.
Additionally, the following positive factors enabled the market to
gain ground during May and early June: the election of President
Menem for a second term in Argentina; positive momentum on
constitutional reforms for Brazil's Cardoso administration; and a
seemingly stronger President Zedillo working through Mexico's
problems. However, these gains lagged the gains in the US bond
market primarily because of investor concerns regarding the region;
specifically, the impact of Mexico's deep recession on its fragile
banking system. Concerns also focused on the ability of the
Brazilian administration to reverse the trade deficit without
endangering the Real Plan, and the timing of the most significant
constitutional reforms--the social security and tax reforms. Other
areas of investor concerns included the impact of Argentina's
economic slowdown on the government's accounts and banking system,
and the combined impact of these factors on the Convertibility Plan.
A significant development is that both Mexico and Argentina have
stressed free-market oriented economic policies to emerge from the
economic crisis and attract investors' confidence. We expect gross
domestic product (GDP) growth to resume in these econo-mies during
the last quarter of 1995. In our view, the resumption of GDP growth
will allow credit fundamentals to improve and will be the driving
force behind a gradual tightening in credit spreads in the region.
Additionally, a stable US interest rate environment as a result of a
slowdown in the US economy and contained inflation will help to
attract investors to emerging markets in search of higher yield, in
our view.
Investment Environment
<PAGE>
Mexico
In Mexico, inflation is falling sharply accompanied by declining
interest rates. The country is posting substantial trade surpluses
and the peso is relatively stable. Mexico has had good success in
accessing the Euro markets. Mexico has now issued short-term paper
in the yen, Deutschemark and US dollar. With renewed investor
confidence, Mexico can now focus on economic growth which is taking
root at this point and should gain visibility during the fourth
quarter.
Argentina
In Argentina, the most significant development has been the issuance
of a DM 1 billion Euro bond. This issue comes at a timely juncture
when the Argentine economy is contracting as a result of a lack of
liquidity and consumer confidence. While the Argentine administration
proceeds with structural reforms in the face of high unemployment
rates, economic growth has suffered. The steady growth of deposits
along with their ability to access external capital markets should
help Argentina revive the economy. While the cyclical downturn in
1995 will keep Argentina from meeting International Monetary Fund
(IMF) targets for this year, we expect the IMF to renegotiate these
targets and support the administration's economic strategy.
Brazil
In Brazil, the most significant development has been the
announcement of a "deindexation" program aimed at replacing wage
indexation with free wage negotiation. While this program involves a
complex and delicate process entailing significant execution risk,
this is a major step in the right direction for Brazil. There are
signs of a slowdown in consumption which should ease pressure on
inflation and help the deindexation effort. High domestic interest
rates is bringing a deluge of foreign money into the local money
markets and has inflated foreign exchange reserves by about $5
billion--$6 billion during July. The reform process, which is
another key element in the Brazilian strategy, has been dormant
during the congressional winter break.
In Conclusion
We thank you for your investment in Merrill Lynch Americas Income
Fund, Inc., and we look forward to updating our outlook and strategy
with you in our next quarterly report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Paolo Valle)
Paolo Valle
Vice President and
Portfolio Manager
August 11, 1995
Proxy Results
During the six-month period ended June 30, 1995, Merrill Lynch
Americas Income Fund, Inc. shareholders voted on the following
proposals. Proposals 1, 2 and 4 were approved at a special
shareholders' meeting on September 28, 1994. Proposal 3 was passed
at a special shareholders' meeting on January 31, 1995. The
description of each proposal and number of shares voted are as
follows:
<TABLE>
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Donald Cecil 14,074,252 150,470
Edward H. Meyer 14,074,252 150,470
Charles C. Reilly 14,081,544 143,178
Richard R. West 14,081,544 143,178
Arthur Zeikel 14,074,403 150,319
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Deloitte & Touche LLP as the Fund's independent auditors. 13,946,753 64,379 213,590
3. To approve certain changes to the Fund's fundamental investment restrictions. 7,543,606 226,321 341,623
4. To amend the Fund's articles of incorporation to implement the Merrill
Lynch Select Pricing SM System. 13,230,401 389,318 605,003
</TABLE>
<PAGE>
PERFORMANCE DATA
About Fund
Performance
Since October 21, 1994, investors have been able to purchase shares
of the Fund through the Merrill Lynch Select Pricing SM System,
which offers four pricing alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 4% and bear no ongoing distribution or account maintenance
fees. Class A Shares are available only to eligible investors, as
detailed in the Fund's prospectus. If you were a Class A shareholder
prior to October 21, 1994, your Class A Shares were redesignated to
Class D Shares on October 21, 1994, which, in the case of certain
eligible investors, were simultaneously exchanged for Class A
Shares.
* 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 10 years.
* Class C Shares are subject to a distribution fee of 0.55% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 4% and an
account maintenance fee of 0.25% (but no distribution fee).
Performance data for the Fund's Class B and Class D Shares are
presented in the "Recent Performance Results," "Average Annual Total
Return" and "Performance Summary" tables below and on pages 5 and 6.
Data for Class A and Class C Shares are also presented in the
"Recent Performance Results" and "Aggregate Total Return" tables
below and on page 5.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for Class B and Class D
Shares for the 12-month and 3-month periods ended June 30, 1995 and
for Class A and Class C Shares for the since inception and 3-month
periods ended June 30, 1995. All data in this table assume
imposition of the actual total expenses incurred by each class of
shares during the relevant period.
<PAGE>
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
6/30/95 3/31/95 6/30/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Americas Income Fund Class A Shares* $8.59 $7.40 $9.08 -5.40% +16.08%
ML Americas Income Fund Class B Shares* 8.55 7.37 8.81 -2.95 +16.01
ML Americas Income Fund Class C Shares* 8.55 7.37 9.08 -5.84 +16.01
ML Americas Income Fund Class D Shares* 8.55 7.37 8.81 -2.95 +16.01
ML Americas Income Fund Class A Shares--Total Return* +2.11(1) +19.45(2)
ML Americas Income Fund Class B Shares--Total Return* +6.94(3) +19.32(4)
ML Americas Income Fund Class C Shares--Total Return* +0.83(5) +19.02(6)
ML Americas Income Fund Class D Shares--Total Return* +7.50(7) +19.31(8)
ML Americas Income Fund Class A Shares--Standardized 30-day Yield 13.75%
ML Americas Income Fund Class B Shares--Standardized 30-day Yield 13.55%
ML Americas Income Fund Class C Shares--Standardized 30-day Yield 13.59%
ML Americas Income Fund Class D Shares--Standardized 30-day Yield 13.50%
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
++Investment results shown for Class A and Class C Shares are since
inception (10/21/94).
(1)Percent change includes reinvestment of $0.596 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.246 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.814 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.230 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.547 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.228 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.859 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.240 per share ordinary
income dividends.
</TABLE>
<PAGE>
Average Annual
Total Return
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/95 +6.94% +3.04%
Inception (8/27/93) through 6/30/95 +0.28 -1.35
[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 Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 6/30/95 +7.50% +3.20%
Inception (8/27/93) through 6/30/95 +0.79 -1.42
[FN]
*Maximum sales charge is 4%. On 10/21/94, Class A Shares were
redesignated to Class D Shares.
**Assuming maximum sales charge.
<PAGE>
Aggregate
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Inception (10/21/94) through 6/30/95 +2.11% -1.97%
[FN]
*Maximum sales charge is 4%. On 10/21/94, Class A Shares were
redesignated to Class D Shares.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through 6/30/95 +0.83% -0.11%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
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>
8/27/93--12/31/93 $10.00 $10.84 -- $0.281 +11.30%
1994 10.84 8.48 -- 0.754 -15.08
1/1/95--6/30/95 8.48 8.55 -- 0.397 + 6.36
------
Total $1.432
Cumulative total return as of 6/30/95: +0.52%**
<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 payable 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 D Shares***
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
8/27/93--12/31/93 $10.00 $10.84 -- $0.300 +11.49%
1994 10.84 8.48 -- 0.802 -14.65
1/1/95--6/30/95 8.48 8.55 -- 0.417 + 6.62
------
Total $1.519
Cumulative total return as of 6/30/95: +1.46%**
<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 payable date, and do not
include sales charges; results would be lower if sales charge was
included.
***As a result of the implementation of the Merrill Lynch Select
Pricing SM System, Class A Shares of the Fund outstanding prior to
October 21, 1994 were redesignated to Class D Shares.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Interest Maturity Value Percent of
COUNTRY Industry Face Amount Bonds Rate Date (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C> <C>
Argentina Banking $ 6,000,000 Banco de Galica y Buenos Aires
S.A.--Yankee 9.00 % 11/01/2003 $ 4,200,000 3.6%
7,000,000 Banco Rio de la Plata S.A.--Yankee 8.75 12/15/2003 5,145,000 4.5
------------ ------
9,345,000 8.1
Conglomerate 2,000,000 Sociedad Commercial del Plata 8.75 12/14/1998 1,605,000 1.4
Energy
Total Bonds in Argentina (Cost--$14,902,500) 10,950,000 9.5
<PAGE>
Brazil Banking 4,000,000 Banco do Estado de Parana 10.00 2/27/1996 3,880,000 3.4
850,000 Banco Minas Gerais 10.00 1/15/1996 838,312 0.7
2,000,000 Banco Nacional de Desenvolvimento
Economic E Social (BNDES) 10.375 4/27/1998 1,965,000 1.7
1,000,000 Uniao de Bancos Brasileiros S.A.
(UNIBANCO) 8.50 7/29/1996 985,000 0.9
------------ ------
7,668,312 6.7
Energy 1,000,000 Celulose Nipo--Brasileira S.A.
(CENIBRA)+++ 9.375 12/21/2003 912,500 0.8
Oil Service 1,000,000 Compania Brazileira de Petroleo
Ipiranga+++ (a) 8.625 2/25/2002 940,000 0.8
Paper 1,000,000 Klabin Fabricadora Papel 10.00 12/20/2001 900,000 0.7
Total Bonds in Brazil (Cost--$10,798,875) 10,420,812 9.0
Colombia Banking 2,000,000 Banco de Colombia 7.50 10/21/1998 1,880,000 1.6
Total Bonds in Colombia (Cost--$1,952,500) 1,880,000 1.6
Mexico Banking 1,500,000 Banamex Eurobond, S.A. 9.125 4/06/2000 1,267,500 1.1
1,000,000 Banco de Atlantico, S.A.+++ 7.875 11/05/1998 740,000 0.6
7,000,000 Banco Nacional de Commercial 7.25 2/02/2004 4,970,000 4.3
------------ ------
6,977,500 6.0
Steel 2,000,000 Grupo Simec, S.A. de C.V., guaranteed
by Grupo Sidek, S.A.+++ 8.875 12/15/1998 1,100,000 1.0
Tourism 3,500,000 Grupo Situr, S.A. de C.V., guaranteed
by Grupo Sidek, S.A. 8.75 9/14/1998 1,680,000 1.5
Total Bonds in Mexico (Cost--$12,941,685) 9,757,500 8.5
Venezuela Oil 1,000,000 Bariven S.A. 10.625 3/17/2002 901,250 0.8
Total Bonds in Venezuela (Cost--$1,075,000) 901,250 0.8
Total Investments in Bonds
(Cost--$41,670,560) 33,909,562 29.4
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Interest Maturity Value Percent of
COUNTRY Industry Face Amount Brady Bonds Rate Date (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C> <C>
Argentina Sovereign $37,000,000 Republic of Argentina, Floating
Government Rate Bond++ 7.312% 3/31/2005 $22,385,000 19.5%
Obligations 3,000,000 Republic of Argentina--Global 8.375 12/20/2003 2,205,000 1.9
4,500,000 Republic of Argentina, Par 'L' 5.00 3/31/2023 2,148,750 1.9
Total Brady Bonds in Argentina
(Cost--$25,291,735) 26,738,750 23.3
Brazil Sovereign 19,767,600 Republic of Brazil, C Bonds (a)++* 8.00 4/15/2014 9,710,834 8.5
Government 2,500,000 Republic of Brazil, EI Bonds 6.687 4/15/2006 1,493,750 1.3
Obligations 3,000,000 Republic of Brazil, Exit Bonds 6.00 9/15/2013 1,458,750 1.3
19,500,000 Republic of Brazil, Floating Rate
Bond, Debenture 7.312 4/15/2012 10,042,500 8.7
11,000,000 Republic of Brazil, Floating Rate
Bond, New Money* 7.312 4/15/2009 5,912,500 5.1
Total Brady Bonds in Brazil (Cost--$30,576,972) 28,618,334 24.9
Ecuador Sovereign 3,000,000 Republic of Ecuador--Discount 7.25 2/28/2025 1,496,250 1.3
Government 107,000 Republic of Ecuador--PDI 7.25 2/28/2015 35,444 0.0
Obligations
Total Brady Bonds in Ecuador (Cost--$1,821,299) 1,531,694 1.3
Mexico Sovereign 2,000,000 United Mexican States, Par 'A' 6.25 12/31/2019 1,212,500 1.1
Government 12,501,000 United Mexican States, Par (Rights) 0.00 0 0.0
Obligations 10,500,000 United Mexican States, Par 'B'* 6.25 12/31/2019 6,365,625 5.5
Total Brady Bonds in Mexico (Cost--$6,691,524) 7,578,125 6.6
Venezuela Sovereign 2,000,000 Republic of Venezuela, Floating
Government Rate Bond 7.312 3/31/2007 982,500 0.8
Obligations 3,000,000 Republic of Venezuela, Par 'A' 6.75 3/31/2020 1,515,000 1.3
7,000,000 Republic of Venezuela, Par 'B' 6.75 3/31/2020 3,535,000 3.1
50,000 Republic of Venezuela, Recovery (Rights) 0.00 0 0.0
Total Brady Bonds in Venezuela (Cost--$7,312,223) 6,032,500 5.2
Total Investments in Brady Bonds
(Cost--$71,693,753) 70,499,403 61.3
<PAGE>
Short-Term Investments
Certificates 2,600,000 Banco Mexicano 17.25 10/04/1995 2,492,511 2.2
of Deposit 4,600,000 Banco Promex 16.00 8/01/1995 4,541,543 4.0
5,000,000 Bancreser 18.00 7/27/1995 4,940,888 4.3
Total Certificates of Deposit (Cost--$11,974,942) 11,974,942 10.5
Commercial 4,789,000 General Electric Capital Corp. 6.20 7/03/1995 4,789,000 4.2
Paper**
Total Commercial Paper (Cost--$4,789,000) 4,789,000 4.2
US Government 5,000,000 Federal Home Loan Mortgage Corp. 5.85 7/20/1995 4,986,187 4.3
& Agency
Obligations**
Total US Government & Agency Obligations
(Cost--$4,986,187) 4,986,187 4.3
Total Short-Term Investments (Cost--$21,750,129) 21,750,129 19.0
Total Investments (Cost--$135,114,442) 126,159,094 109.7
<CAPTION>
OPTIONS Strike Expiration
WRITTEN Par Value Issue Price Date
<S> <C> <S> <C> <C> <C> <C>
Call Options $ 5,000,000 Republic of Argentina, Floating
Written Rate Bond $76.375 Aug. 1995 (6,250) (0.0)
3,656,775 Republic of Brazil, C Bonds 57.250 Aug. 1995 (11,702) (0.0)
Total Call Options Written (Premiums Received--$58,769) (17,952) (0.0)
Total Investments, Net of Options Written (Cost--$135,055,673) 126,141,142 109.7
Liabilities in Excess of Other Assets (11,205,895) (9.7)
------------ ------
Net Assets $114,935,247 100.0%
============ ======
<PAGE>
<FN>
++Security represents collateral in connection with an open call
option written.
*Security represents collateral in connection with reverse
repurchase agreements (Note 5).
**Commercial Paper and certain US Government & Agency Obligations
are traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Fund.
(a)Represents a step bond; the interest rate shown is the effective
yield at the time of purchase.
+++Restricted securities as to resale. The value of the Fund's
investment in restricted securities was approximately $3,693,000,
representing 3.2% of net assets.
Acquisition Value
Issue Date Cost (Note 1a)
Banco de Atlantico, S.A. 11/16/1993 $ 980,000 $ 740,000
Celulose Nipo--Brasileria S.A.
(CENIBRA) 2/10/1994 1,000,000 912,500
Compania Brazileira de
Petroleo Ipiranga 2/15/1994 999,126 940,000
Grupo Simec, S.A. de C.V.,
guaranteed by Grupo
Sidek, S.A. 12/02/1993 1,990,880 1,100,000
Total $4,970,006 $3,692,500
========== ==========
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of June 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$135,114,442) (Note 1a) $126,159,094
Cash 794
Foreign cash (Note 1c) 118
Receivables:
Interest $ 2,818,499
Securities sold 2,248,927
Beneficial interest sold 92,988 5,160,414
------------
Deferred organization expenses (Note 1f) 76,243
Prepaid registration fees and other assets (Note 1f) 32,674
------------
Total assets 131,429,337
------------
<PAGE>
Liabilities: Options written, at value (premiums received--$58,769)
(Notes 1a & 1b) 17,952
Payables:
Reverse repurchase agreements (Note 5) 7,344,125
Securities purchased 7,028,006
Beneficial interest redeemed 1,512,195
Dividends to shareholders (Note 1g) 358,886
Distributor (Note 2) 64,382
Investment adviser (Note 2) 61,180
Interest expense (Note 5) 8,600 16,377,374
------------
Accrued expenses and other liabilities 98,764
------------
Total liabilities 16,494,090
------------
Net Assets: Net assets $114,935,247
============
Net Assets Class A Common Stock, $0.10 par value, 100,000,000
Consist of: shares authorized $ 12,862
Class B Common Stock, $0.10 par value, 100,000,000
shares authorized 1,071,761
Class C Common Stock, $0.10 par value, 100,000,000
shares authorized 7,351
Class D Common Stock, $0.10 par value, 100,000,000
shares authorized 252,499
Paid-in capital in excess of par 137,419,005
Undistributed investment income--net 1,641,618
Accumulated realized capital losses on investments and foreign
currency transactions--net (Note 6) (16,555,278)
Unrealized depreciation on investments and foreign currency
transactions--net (8,914,571)
------------
Net assets $114,935,247
============
<PAGE>
Net Asset Class A--Based on net assets of $1,104,566 and 128,617
Value: shares outstanding $ 8.59
============
Class B--Based on net assets of $91,622,004 and 10,717,607
shares outstanding $ 8.55
============
Class C--Based on net assets of $628,312 and 73,515
shares outstanding $ 8.55
============
Class D--Based on net assets of $21,580,365 and 2,524,988
shares outstanding $ 8.55
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended June 30, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 6,623,436
(Note 1e):
Expenses: Account maintenance and distribution fees--Class B (Note 2) $ 326,885
Investment advisory fees (Note 2) 312,649
Transfer agent fees--Class B (Note 2) 81,233
Printing and shareholder reports 79,472
Accounting services (Note 2) 67,764
Interest expense (Note 5) 39,662
Professional fees 37,465
Custodian fees 29,837
Registration fees (Note 1f) 21,784
Trustees' fees and expenses 19,797
Account maintenance fees--Class D (Note 2) 18,456
Transfer agent fees--Class D (Note 2) 11,688
Amortization of organization expenses (Note 1f) 10,573
Account maintenance and distribution fees--Class C (Note 2) 799
Transfer agent fees--Class A (Note 2) 599
Pricing fees 568
Transfer agent fees--Class C (Note 2) 181
Other 4,151
------------
Total expenses 1,063,563
------------
Investment income--net 5,559,873
------------
<PAGE>
Realized & Realized loss on investments--net (7,861,468)
Unrealized Gain Change in unrealized appreciation/depreciation on:
(Loss) on Investments--net 7,535,764
Investments & Foreign currency transactions--net (33) 7,535,731
Foreign ------------ ------------
Currency Net realized and unrealized loss on investments and foreign
Transactions currency transactions (325,737)
--Net ------------
(Notes 1b, 1c, Net Increase in Net Assets Resulting from Operations $ 5,234,136
1e & 3): ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: June 30, 1995 Dec. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 5,559,873 $ 10,802,121
Realized loss on investments and foreign currency
transactions--net (7,861,468) (8,693,336)
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 7,535,731 (22,739,647)
------------ ------------
Net increase (decrease) in net assets resulting from
operations 5,234,136 (20,630,862)
------------ ------------
Dividends & Investment income--net:
Distributions to Class A (51,942) (11,403)
Shareholders Class B (4,665,937) (7,795,228)
(Note 1g): Class C (10,926) (1,064)
Class D (831,068) (1,352,808)
Realized gain on investments--net:
Class A -- (2,044)
Class B -- (1,396,952)
Class C -- (191)
Class D -- (242,431)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (5,559,873) (10,802,121)
------------ ------------
<PAGE>
Capital Share Net increase (decrease) in net assets derived from capital
Transactions share transactions (1,938,482) 34,708,277
(Note 4): ------------ ------------
Net Assets: Total increase (decrease) in net assets (2,264,219) 3,275,294
Beginning of period 117,199,466 113,924,172
------------ ------------
End of period* $114,935,247 $117,199,466
============ ============
<FN>
*Undistributed investment income--net $ 1,641,618 $ 1,641,618
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF CASH FLOWS
<CAPTION>
For the Six Months Ended June 30, 1995
<S> <S> <C>
Cash Provided by Net decrease in net assets resulting from operations $ 5,234,136
Operating Adjustments to reconcile net increase in net assets resulting from
Activities: operations to net cash provided by
operating activities:
Increase in receivables (459,746)
Decrease in other assets 2,170
Decrease in other liabilities (293,279)
Realized and unrealized loss on investments and foreign currency
transactions--net 325,737
Amortization of premium and discount--net (468,772)
------------
Net cash provided by operating activities 4,340,246
------------
<PAGE>
Cash Provided by Proceeds from sales of long-term securities 62,357,304
Investing Purchases of long-term securities (59,334,133)
Activities: Purchases of short-term investments (503,120,716)
Proceeds from sales and maturities of short-term investments 513,187,185
------------
Net cash provided by investing activities 13,089,640
------------
Cash Used for Cash receipts from issuance of common stock 25,186,370
Financing Repayments of borrowings--net (9,713,875)
Activities: Cash payments on shares of beneficial interest redeemed (29,506,268)
Dividends paid to shareholders (3,395,734)
------------
Net cash used for financing activities (17,429,507)
------------
Cash: Net increase in cash 379
Cash at beginning of period 533
------------
Cash at end of period $ 912
============
Cash Flow Cash paid for interest $ 183,522
Information: ============
Non-Cash Capital shares issued on reinvestment of dividends paid to shareholders $ 2,689,130
Financing ============
Activities:
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A Class B
For the For the For the For the
The following per share data and ratios Six Period Six For the Period
have been derived from information provided Months Oct. 21, Months Year Aug. 27,
in the financial statements. Ended 1994++ to Ended Ended 1993++ to
June 30, Dec. 31, June 30, Dec. 31, Dec. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 8.51 $ 9.08 $ 8.48 $ 10.84 $ 10.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .46 .17 .42 .75 .24
Realized and unrealized gain (loss) on
investments and foreign currency transactions
--net .08 (.57) .07 (2.36) .88
-------- -------- -------- -------- --------
Total from investment operations .54 (.40) .49 (1.61) 1.12
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.46) (.14) (.42) (.64) (.24)
Realized gain on investments--net -- (.03) -- (.11) (.04)
-------- -------- -------- -------- --------
Total dividends and distributions (.46) (.17) (.42) (.75) (.28)
-------- -------- -------- -------- --------
Net asset value, end of period $ 8.59 $ 8.51 $ 8.55 $ 8.48 $ 10.84
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 6.87%+++ (4.45%)+++ 6.36%+++ (15.08%) 11.30%+++
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding account maintenance
Net Assets: and distribution fees, interest expense
and net of reimbursement 1.18%* 1.22%* 1.32%* 1.04% .27%*
======== ======== ======== ======== ========
Expenses, excluding interest expense and
net of reimbursement 1.18%* 1.22%* 2.07%* 1.79% 1.03%*
======== ======== ======== ======== ========
Expenses, excluding interest expense 1.18%* 1.22%* 2.07%* 2.00% 2.45%*
======== ======== ======== ======== ========
Expenses 1.38%* .69%* 2.14%* 2.70% 2.53%*
======== ======== ======== ======== ========
Investment income--net 11.79%* 8.63%* 10.71%* 8.14% 6.76%*
======== ======== ======== ======== ========
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 1,105 $ 253 $ 91,622 $101,933 $ 98,848
Data: ======== ======== ======== ======== ========
Portfolio turnover 56.56% 353.33% 56.56% 353.33% 75.18%
======== ======== ======== ======== ========
<CAPTION>
Class C Class D
For the For the For the For the
The following per share data and ratios Six Period Six For the Period
have been derived from information provided Months Oct. 21, Months Year Aug. 27,
in the financial statements. Ended 1994++ to Ended Ended 1993++ to
June 30, Dec. 31, June 30, Dec. 31, Dec. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 8.47 $ 9.08 $ 8.48 $ 10.84 $ 10.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .42 .15 .44 .80 .26
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .08 (.61) .07 (2.36) .88
-------- -------- -------- -------- --------
Total from investment operations .50 (.46) .51 (1.56) 1.14
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.42) (.13) (.44) (.68) (.26)
Realized gain on investments--net -- (.02) -- (.12) (.04)
-------- -------- -------- -------- --------
Total dividends and distributions (.42) (.15) (.44) (.80) (.30)
-------- -------- -------- -------- --------
Net asset value, end of period $ 8.55 $ 8.47 $ 8.55 $ 8.48 $ 10.84
======== ======== ======== ======== ========
Total Based on net asset value per share 6.21%+++ (5.06%)+++ 6.62%+++ (14.65%) 11.49%+++
Investment ======== ======== ======== ======== ========
Return:**
<PAGE>
Ratios to Expenses, excluding account maintenance
Average and distribution fees, interest expense
Net Assets: and net of reimbursement 1.28%* 1.44%* 1.28%* 1.03% .25%*
======== ======== ======== ======== ========
Expenses, excluding interest expense
and net of reimbursement 2.08%* 2.24%* 1.53%* 1.28% .50%*
======== ======== ======== ======== ========
Expenses, excluding interest expense 2.08%* 2.24%* 1.53%* 1.48% 1.93%*
======== ======== ======== ======== ========
Expenses 2.29%* 3.05%* 1.63%* 2.17% 2.03%*
======== ======== ======== ======== ========
Investment income--net 10.94%* 8.87%* 11.26%* 8.65% 7.14%*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 628 $ 75 $ 21,580 $ 14,938 $ 15,076
Data: ======== ======== ======== ======== ========
Portfolio turnover 56.56% 353.33% 56.56% 353.33% 75.18%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Americas Income Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. These unaudited financial
statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. The Fund offers four classes of shares under the
Merrill Lynch Select Pricing SM System. Shares of Class A and Class D
are sold with a front-end sales charge. Shares of Class B and Class
C may be subject to a contingent deferred sales charge. All classes
of shares have identical voting, dividend, liquidation and other
rights and the same terms and conditions, except that Class B, Class
C and Class D Shares bear certain expenses related to the account
maintenance of such shares, and Class B and Class C Shares also bear
certain expenses related to the distribution of such shares. Each
class has exclusive voting rights with respect to matters relating
to its account maintenance and distribution expenditures. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of securities--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of Directors as
the primary market. Securities which are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written are valued
at the last sale price in the case of exchange-traded options or, in
the case of options traded in the over-the-counter market, the last
asked price. Options purchased are valued at the last sale price in
the case of exchange-traded or, in the case of options traded in the
over-the-counter market, the last bid price. Short-term securities
are valued at amortized cost, which approximates market value. Other
investments, including futures contracts and related options, are
stated at market value. Securities and assets for which market value
quotations are not available are valued at their fair value as
determined in good faith by or under the direction of the Fund's
Board of Directors.
<PAGE>
(b) 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 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.
* Forward foreign exchange contracts--The Fund is authorized to enter
into forward foreign exchange contracts as a hedge against either
specific transactions or portfolio positions. Such contracts are not
entered on the Fund's records. However, the effect on operations is
recorded from the date the Fund enters into such contracts. Premium
or discount is amortized over the life of the contracts.
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Financial futures contracts--The Fund may purchase or sell financial
futures contracts and options on such futures contracts as a hedge
against adverse changes in interest rates. A futures contract is an
agreement between two parties to buy and sell a security,
respectively, for a set price on a future date. 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.
<PAGE>
(c) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
its shareholders. Therefore, no Federal income tax provision is
required. Under the applicable foreign tax law, a withholding tax
may be imposed on interest and capital gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
discount) is recognized on the accrual basis. Realized gains and
losses on security transactions are determined on the identified
cost basis.
(f) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense over a five-
year period. Prepaid registration fees are charged to expense as the
related shares are issued.
(g) Dividends and distributions--Dividends from net investment
income are declared daily and paid monthly. Distribution of capital
gains are recorded on the ex-dividend date.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM"). The general partner
of MLAM is Princeton Services, Inc. ("PSI"), an indirect wholly-
owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is
the limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
<PAGE>
MLAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operation of the Fund. For such
services, the Fund pays a monthly fee of 0.60%, on an annual
basis, of the average daily value of the Fund's net assets plus the
principal amount of borrowings incurred by the Fund for leverage
purposes. The most restrictive annual expense limitation requires
that the Investment Adviser reimburse the Fund to the extent the
Fund's expenses (excluding interest, taxes, distribution fees,
brokerage fees and commissions, and extraordinary items) exceed 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the next $70 million of average daily net assets, and 1.5% of the
average daily net assets in excess thereof. The Investment Adviser's
obligation to reimburse the Fund is limited to the amount of the
investment advisory fee. No fee payment will be made to the
Investment Adviser during any fiscal year which will cause such
expenses to exceed the most restrictive expense limitation at the
time of such payment.
Pursuant to the distribution plans ("the Distribution Plans")
adopted by the Fund in accordance with Rule 12b-1 under the
Investment Company Act of 1940, the Fund pays the Distributor
ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares as follows:
Account 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.
<PAGE>
For the six months ended June 30, 1995, MLFD earned underwriting
discounts and MLPF&S earned dealer concessions on sales of the
Fund's Class A and Class D Shares as follows:
MLFD MLPF&S
Class A $020 $ 375
Class D $432 $ 6,174
For the period ended June 30, 1995, MLPF&S received contingent
deferred sales charges of $171,760 and $133 relating to transactions
in Class B and Class C Shares, respectively.
NOTES TO FINANCIAL STATEMENTS (concluded)
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLAM, PSI, MLPF&S, MLFD, MLFDS, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended June 30, 1995 were $60,134,778 and
$51,876,756, respectively.
Realized and unrealized losses as of June 30, 1995 were as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ (8,092,750) $ (8,955,348)
Short-term investments 511 --
Foreign currency transactions -- (40)
Options written 271,000 40,817
Options purchased (40,229) --
------------ ------------
Total $ (7,861,468) $ (8,914,571)
============ ============
Transactions in call options written for the six months ended June
30, 1995 were as follows:
<PAGE>
Premiums
Call Options Written Par Value Received
Outstanding call options written,
beginning of period 21,500,000 $ 271,000
Options written 8,686,775 58,769
Options expired (21,500,000) (271,000)
------------ ------------
Outstanding call options written,
end of period 8,686,775 $ 58,769
============ ============
Transactions in put options written for the six months ended June
30, 1995 were as follows:
Premiums
Put Options Written Par Value Received
Outstanding put options written,
beginning of period 6,500,000 $ 131,000
Options exercised (6,500,000) (131,000)
------------ ------------
Outstanding put options written,
end of period -- $ --
============ ============
As of June 30, 1995, net unrealized depreciation for Federal income
tax purposes aggregated $8,914,531 of which $4,133,919 related to
appreciated securities and $13,048,450 related to depreciated
securities. At June 30, 1995, the aggregate cost of investments,
including options purchased less premiums received for options
written, for Federal income tax purposes was $135,055,673.
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial
interest transactions was ($1,938,482) and $34,708,277 for the six
months ended June 30, 1995 and the year ended December 31, 1994,
respectively.
Transactions in shares of beneficial interest were as follows:
<PAGE>
Class A Shares for the Six Months Dollar
Ended June 30, 1995 Shares Amount
Shares sold 374,281 $ 3,265,212
Shares issued to shareholders
in reinvestment of dividends 27,643 23,386
------------ ------------
Total issued 401,924 3,288,598
Shares redeemed (303,024) (2,567,948)
------------ ------------
Net increase 98,900 $ 720,650
============ ============
Class A Shares for the Period Dollar
October 21, 1994++ to December 31, 1994 Shares Amount
Shares sold 398,776 $ 3,605,150
Shares issued to shareholders
in reinvestment of dividends &
distributions 52 444
------------ ------------
Total issued 398,828 3,605,594
Shares redeemed (369,111) (3,244,117)
------------ ------------
Net increase 29,717 $ 361,477
============ ============
[FN]
++Commencement of Operations.
Class B Shares for the Six Months Dollar
Ended June 30, 1995 Shares Amount
Shares sold 1,207,417 $ 9,765,004
Shares issued to shareholders
in reinvestment of dividends 279,697 2,245,922
------------ ------------
Total issued 1,487,114 12,010,926
Shares redeemed (2,795,491) (21,860,877)
------------ ------------
Net decrease (1,308,377) $ (9,849,951)
============ ============
<PAGE>
Class B Shares for the Year Dollar
Ended December 31, 1994 Shares Amount
Shares sold 7,923,270 $ 75,478,521
Shares issued to shareholders
in reinvestment of dividends &
distributions 386,490 3,561,014
------------ ------------
Total issued 8,309,760 79,039,535
Shares redeemed (5,404,682) (48,873,193)
------------ ------------
Net increase 2,905,078 $ 30,166,342
============ ============
Class C Shares for the Six Months Dollar
Ended June 30, 1995 Shares Amount
Shares sold 95,646 $ 791,099
Shares issued to shareholders
in reinvestment of dividends 514 4,202
------------ ------------
Total issued 96,160 795,301
Shares redeemed (31,549) (255,150)
------------ ------------
Net increase 64,611 $ 540,151
============ ============
Class C Shares for the Period Dollar
October 21, 1994++ to December 31, 1994 Shares Amount
Shares sold 21,072 $ 188,454
Shares issued to shareholders
in reinvestment of dividends &
distributions 13 115
------------ ------------
Total issued 21,085 188,569
Shares redeemed (12,181) (107,206)
------------ ------------
Net increase 8,904 $ 81,363
============ ============
[FN]
++Commencement of Operations.
<PAGE>
Class D Shares for the Six Months Dollar
Ended June 30, 1995 Shares Amount
Shares sold 1,324,729 $ 11,154,693
Shares issued to shareholders
in reinvestment of dividends 51,001 415,620
------------ ------------
Total issued 1,375,730 11,570,313
Shares redeemed (613,250) (4,919,645)
------------ ------------
Net increase 762,480 $ 6,650,668
============ ============
Class D Shares for the Year Dollar
Ended December 31, 1994 Shares Amount
Shares sold 1,554,975 $ 15,123,677
Shares issued to shareholders
in reinvestment of dividends &
distributions 77,493 648,127
------------ ------------
Total issued 1,632,468 15,771,804
Shares redeemed (1,261,103) (11,672,709)
------------ ------------
Net increase 371,365 $ 4,099,095
============ ============
5. Reverse Repurchase Agreements:
Under a reverse repurchase agreement, the Fund sells securities and
agrees to repurchase them at a mutually agreed upon date and price.
At the time the Fund enters into a reverse repurchase agreement, it
may establish a segregated account with the custodian containing
cash, cash equivalents or liquid high-grade debt securities having a
value at least equal to the repurchase price.
<PAGE>
As of June 30, 1995, the Fund had entered into reverse repurchase
agreements in the amount of $7,344,125. For the six months ended
June 30, 1995, the maximum amount entered into was $17,058,000, the
average amount outstanding was $5,395,976, and the daily weighted
average interest rate was 6.51%.
6. Capital Loss Carryforward:
At December 31, 1994, the Fund had a net capital loss carryforward
of approximately $3,796,000, all of which expires in 2002. This
amount is available to offset like amounts of any future taxable
gains.
