MERRILL LYNCH
UTILITY INCOME
FUND, INC.
FUND LOGO
Annual Report
August 31, 1999
Officers and Directors
Terry K. Glenn, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Arthur Zeikel, Director
Robert C. Doll, Senior Vice President
Walter D. Rogers, Senior Vice President and
Portfolio Manager
Donald C. Burke, Vice President and
Treasurer
Ira P. Shapiro, Secretary
Custodian
State Street Bank and Trust Company
One Heritage Drive, P2N
North Quincy, MA 02171
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Statements and other information herein are as dated and are
subject to change.
Merrill Lynch
Utility Income Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH UTILITY INCOME FUND, INC.
DEAR SHAREHOLDER
During the 12-month period ended August 31, 1999, the performance of
the domestic electric utility sector was negatively affected by a
rise in the long-term interest rates and a robust US economy, which
fueled investor optimism for higher risk sectors such as technology.
For the year ended August 31, 1999, the average price return of the
domestic electric utility sector, as measured by the benchmark
unmanaged Standard & Poor's Electric Index, was +4.58%. This result
does not take into account the average annualized current yield for
this Index, which was 4.54% on August 31, 1998, compared to 4.78% on
August 31, 1999. Utility bonds, as measured by the unmanaged Merrill
Lynch C5G0 High and Medium Quality Utilities Index, had a price
return of -4.7% and a total return of +1.81%, respectively, for the
12 months ended August 31, 1999.
Fundamentally, the investment outlook improved during the fiscal
year. A number of regulatory rulings concerning the transition of
the domestic electric utility industry to competition were resolved.
While there is still more news to come on the regulatory front, the
process continues to move at a gradual pace, which has been good for
both companies and investors.
The sale of assets, which is a significant factor in the
restructuring of the industry, also continues to move ahead. For the
most part, electric generating assets have sold at well above book
value. The weighted average selling price has been 1.93 times book
value for 66,211 megawatts of non-nuclear capacity with announced
buyers. Nuclear generating assets, which many assumed would carry
little value, have also received positive bids. The first sale of a
nuclear plant to be completed in the United States occurred in early
July when Entergy took over the 670-megawatt Pilgrim plant from
Boston Edison (now called NSTAR). Winning bids for over 3,700
megawatts of nuclear capacity have been announced and the average
price per kilowatt is approximately $65. There are several more
sales of assets pending, including both gas-fired and nuclear
facilities.
Merger and acquisition activity continues in the utility sector.
Seven announcements came in the month of June, with six involving
combining electric and natural gas assets. Many of the recent
announcements involved smaller companies that represent a good
strategic fit. The regulatory approval process remains relatively
slow for electric-to-electric company mergers. Convergence mergers
between natural gas and electric companies tend to get completed
faster as the issue of market power becomes less significant. In
fact, of the 18 mergers completed since early 1997, 10 were electric
and gas acquisitions. Currently, there are more than 20 transactions
pending in the electric and natural gas utility sector. More are
expected to come, as companies need to increase their scale to
capture more of the energy market.
Fiscal Year in Review
For the 12-month period ended August 31, 1999, total returns for
Merrill Lynch Utility Income Fund, Inc.'s Class A, Class B, Class C
and Class D Shares were +4.40%, +3.70%, +3.67% and +4.13%,
respectively. (Results shown do not reflect sales charges and would
be lower if sales charges were included. For complete performance
information, see pages 3--5 of this report to shareholders.)
During the fiscal year, we maintained our investment objective of
seeking to generate high current income by remaining primarily
invested in domestic electric utility stocks and utility bonds.
Historically, we have concentrated on the domestic electric utility
sector because of its above-market average yields. However, we added
and maintained investments in the natural gas and water utility
equities where we believed the yield and potential for dividend
growth were evident. As a result of our income-oriented strategy,
the Fund underperformed compared to other utility funds for the
fiscal year ended August 31, 1999.
Positive news on the regulatory front had a significant positive
impact on three of our holdings: Public Service Enterprise Group
Incorporated, Dominion Resources, Inc. and Potomac Electric Power
Company. Generating assets sales had the most significant positive
impact on companies such as Unicom Corporation and New England
Electric System. Overall, the composition of the Fund's portfolio
allowed for participation in current industry trends, while
remaining steadfast to our investment objective of generating high
current income.
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
During the fiscal year, the Fund's holdings were beneficiaries of
and participants in many events. Nine of the Fund's holdings are
currently involved in pending mergers and acquisitions. Three of the
companies are expected to be acquired by two United Kingdom-based
utilities. Scottish Power PLC continues to gain approvals for its
acquisition of PacifiCorp., while National Grid has announced its
intent to acquire both New England Electric System and Eastern
Utilities Associates. Two Fund holdings, Northern States Power
Company and New Century Energies, Inc., intend to merge in a stock
swap transaction similar to the pending merger between American
Electric Power Company, Inc. and Central and South West Corporation.
Of the two remaining Fund holdings, Western Resources, Inc. is still
trying to acquire Kansas City Power & Light, which is not held in
the portfolio. In addition, Florida Progress Corporation, another
Fund holding, recently received a takeover offer from Carolina Power
& Light.
For the 12-month period ended August 31, 1999, we continued our
investment strategy of reducing or eliminating positions that no
longer met our income requirements or which became fully valued. The
most significant factor in evaluating our investments was the level
of income generated relative to the risk of the investment. As a
result of this investment review, we eliminated our holdings in KN
Energy, Inc. bonds during the August quarter. Although the yield on
the company's bonds was close to 7%, the termination of the merger
with Sempra Energy resulted in concern over the creditworthiness of
the company. Other contributing factors included: a weak operating
outlook that resulted from two consecutive years of warm weather,
weak basis differentials and compressed processing margins.
Consequently, we sold the Fund's position in KN Energy because of
the substantially heightened risk relative to the bond's yield.
We also sold our position in United Water Resources Inc. (UWR) stock
during the fiscal fourth quarter, as we believed the shares were
fully valued. The French-based water utility company Suez Lyonnaise
des Eaux, which already owned 32% of UWR, made a bid to acquire the
remaining shares at a price of $35 per share. The transaction is
expected to close in several months. UWR was trading at a price of
$21.75 per share at the close of May 1999 and reached a price of
$33.50 per share as of August 31, 1999, with the current yield going
from 4.41% to 2.87%.
In Conclusion
We thank you for your support of Merrill Lynch Utility Income Fund,
Inc., and we look forward to reviewing our outlook and strategy with
you in our upcoming quarterly report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Walter D. Rogers)
Walter D. Rogers
Senior Vice President and Portfolio Manager
October 15, 1999
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
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 shares automatically convert to
Class D Shares after 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 "Average Annual Total Return" tables assume
reinvestment of all dividends and capital gains distributions at net
asset value on the ex-dividend 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.
<TABLE>
Recent Performance Results*
<CAPTION>
3 Month 12 Month Since Inception
As of August 31, 1999 % Change % Change Total Return
<S> <C> <C> <C>
ML Utility Income Fund, Inc. Class A Shares -2.12% +4.40% +51.75%
ML Utility Income Fund, Inc. Class B Shares -2.31 +3.70 +45.17
ML Utility Income Fund, Inc. Class C Shares -2.32 +3.67 +69.12
ML Utility Income Fund, Inc. Class D Shares -2.26 +4.13 +74.18
<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 ex-dividend date. The
Fund's since inception dates are from 10/29/93 for Class A &Class B
Shares and from 10/21/94 for Class C & Class D Shares.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
PERFORMANCE DATA (continued)
ML Utility Income Fund's Class A and Class B Shares--Total Return
Based on a $10,000 Investment
A line graph depicting the growth of an investment in the
Portfolio's Class A Shares and Class B Shares compared to growth of
an investment in the S&P 500 Index and a Composite Index.
Beginning and ending values are:
10/29/93** 8/99
ML Utility Income++--
Class A Shares* $ 9,600 $14,568
ML Utility Income++--
Class B Shares* $10,000 $14,517
Composite Index++++ $10,000 $15,210
S&P 500 Index++++++ $10,000 $31,918
ML Utility Income Fund's Class C and Class D Shares--Total Return
Based on a $10,000 Investment
A line graph depicting the growth of an investment in the
Portfolio's Class C and Class D Shares compared to growth of an
investment in the S&P 500 Index and a Composite Index.
Beginning and ending values are:
10/21/94** 8/99
ML Utility Income++--
Class C Shares* $10,000 $16,912
ML Utility Income++--
Class D Shares* $ 9,600 $16,722
Composite Index++++ $10,000 $17,737
S&P 500 Index++++++ $10,000 $31,241
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Utility Income Fund, Inc. invests at least 65% of its total
assets in equity and debt securities which are, in the opinion of
the Fund's management, primarily engaged in the ownership or
operations of facilities used to generate, transmit or distribute
electricity, telecommunications, gas or water.
++++This unmanaged market value-weighted composite Index is
comprised of the S&P Electric Utility Index (75%), representing 25
electric utility companies, and the Merrill Lynch C5GO High and
Medium Quality Utilities Index (25%), representing US corporate
utility and phone bonds maturing in 1-10 years. The starting date
for the Index in the Class C & Class D Shares' graph is from
10/31/94.
++++++This unmanaged broad-based Index is comprised of common
stocks.
Past performance is not predictive of future performance.
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
PERFORMANCE DATA (concluded)
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/99 + 3.20% - 0.93%
Five Years Ended 6/30/99 +12.40 +11.49
Inception (10/29/93)
through 6/30/99 + 7.52 + 6.75
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/99 + 2.32% - 1.52%
Five Years Ended 6/30/99 +11.52 +11.52
Inception (10/29/93)
through 6/30/99 + 6.69 + 6.69
[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*
Year Ended 6/30/99 + 2.29% + 1.32%
Inception (10/21/94)
through 6/30/99 +11.72 +11.72
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 6/30/99 + 2.94% - 1.18%
Inception (10/21/94)
through 6/30/99 +12.43 +11.45
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
IMPORTANT TAX INFORMATION
Of the ordinary income distributions paid monthly by Merrill Lynch
Utility Income Fund, Inc. during its fiscal year ended August 31,
1999, 82.29% qualifies for the dividends received deduction for
corporations.
Additionally, the following table summarizes the long-term capital
gains distributed by the Fund during the year:
Long-Term
Record Payable Capital
Date Date Gains
12/31/98 1/11/99 $.231714*
[FN]
*The entire distribution is subject to the 20% tax rate.
Please retain this information for your records.
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Value Percent of
Industries Held Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Utilities--Electric 49,000 Allegheny Energy, Inc. $ 1,231,050 $ 1,653,750 2.9%
43,600 Ameren Corporation 1,782,353 1,746,725 3.1
24,600 American Electric Power Company, Inc. 892,569 893,288 1.6
36,000 Central & South West Corporation 988,020 814,500 1.4
22,000 Cinergy Corp. 592,830 668,250 1.2
29,100 Consolidated Edison, Inc. 980,888 1,280,400 2.3
47,000 Constellation Energy Group 1,286,708 1,392,375 2.5
31,400 DTE Energy Company 984,627 1,238,338 2.2
36,800 Dominion Resources, Inc. 1,737,197 1,702,000 3.0
65,000 Eastern Utilities Associates 1,671,525 1,945,938 3.5
52,900 FirstEnergy Corp. 1,280,193 1,510,956 2.7
34,000 Florida Progress Corporation 1,105,601 1,593,750 2.8
27,500 GPU, Inc. 767,170 938,438 1.7
30,000 New Century Energies, Inc. 986,106 1,083,750 1.9
42,500 New England Electric System 1,588,405 2,217,969 4.0
56,600 Northern States Power Company 1,443,838 1,333,637 2.4
70,800 PacifiCorp. 1,375,936 1,446,975 2.6
54,500 Potomac Electric Power Company 1,408,427 1,444,250 2.6
29,400 Public Service Enterprise Group
Incorporated 947,445 1,205,400 2.2
35,000 Puget Sound Energy, Inc. 995,169 829,062 1.5
50,000 RGS Energy Group Inc. 1,571,501 1,293,750 2.3
45,300 Reliant Energy, Inc. 1,274,853 1,254,244 2.2
5,876 Sierra Pacific Resources 174,142 143,227 0.3
43,400 The Southern Company 923,825 1,174,512 2.1
21,000 TXU Corp. 715,885 849,187 1.5
32,600 Unicom Corporation 954,082 1,259,175 2.2
20,000 WPS Resources Corporation 673,700 582,500 1.0
30,000 Western Resources, Inc. 976,800 716,250 1.3
----------- ----------- ------
31,310,845 34,212,596 61.0
Utilities--Gas 40,300 AGL Resources Inc. 741,707 727,919 1.3
44,000 KeySpan Corporation 1,344,960 1,298,000 2.3
10,000 New Jersey Resources Corporation 282,913 387,500 0.7
48,000 Sempra Energy 1,165,493 1,071,000 1.9
----------- ----------- ------
3,535,073 3,484,419 6.2
Utilities--Water 9,400 E'Town Corporation 379,991 477,050 0.8
Total Stocks 35,225,909 38,174,065 68.0
Face
Amount Corporate Bonds
Industrial--Energy $2,150,000 Williams Companies Inc., 6.625% due
11/15/2004 2,214,995 2,091,671 3.7
Telecommunications 2,000,000 GTE Corp., 6.36% due 4/15/2006 2,113,280 1,900,820 3.4
2,000,000 MCI WorldCom Inc., 7.75% due 4/01/2007 2,268,560 2,065,000 3.7
1,000,000 Southwestern Bell Corp., 7% due 7/01/2015 1,034,480 955,750 1.7
2,000,000 US West Capital Funding Inc., 6.375% due
7/15/2008 2,135,760 1,836,020 3.2
1,000,000 United Telephone of Florida, Series FF,
6.875% due 7/15/2013 1,019,950 964,490 1.7
----------- ----------- ------
8,572,030 7,722,080 13.7
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Face Value Percent of
Industries Amount Corporate Bonds Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Utilities--Electric $1,000,000 Alabama Power Co., Series G, 5.375% due
10/01/2008 $ 985,660 $ 880,760 1.6%
2,000,000 Consumers Energy, 6.375% due 2/01/2008 2,035,100 1,842,708 3.3
1,000,000 Public Service Company of Colorado,
Series 1, 6.375% due 11/01/2005 991,300 959,540 1.7
----------- ----------- ------
4,012,060 3,683,008 6.6
Utilities--Gas 1,500,000 ENSERCH Corporation, 6.375% due 2/01/2004 1,491,030 1,452,195 2.6
1,000,000 El Paso Natural Gas, 7.75% due 1/15/2002 1,090,950 1,016,170 1.8
----------- ----------- ------
2,581,980 2,468,365 4.4
Total Corporate Bonds 17,381,065 15,965,124 28.4
Short-Term Securities
Commercial Paper* 1,777,000 General Motors Acceptance Corp., 5.56%
due 9/01/1999 1,777,000 1,777,000 3.2
Total Short-Term Securities 1,777,000 1,777,000 3.2
Total Investments $54,383,974 55,916,189 99.6
===========
Other Assets Less Liabilities 203,760 0.4
----------- ------
Net Assets $56,119,949 100.0%
=========== ======
<FN>
*Commercial Paper is traded on a discount basis; the interest rate
shown reflects the discount rate paid at the time of purchase by the
Fund.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of August 31, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$54,383,974) (Note 1a) $55,916,189
Cash 234
Receivables:
Interest $ 265,366
Dividends 131,329
Capital shares sold 10,010 406,705
-----------
Prepaid registration fees and other assets (Note 1f) 19,687
-----------
Total assets 56,342,815
-----------
Liabilities: Payables:
Capital shares redeemed 95,066
Distributor (Note 2) 33,593
Investment adviser (Note 2) 27,243 155,902
-----------
Accrued expenses and other liabilities 66,964
-----------
Total liabilities 222,866
-----------
Net Assets: Net assets $56,119,949
===========
Net Assets Class A Shares of Common Stock, $.10 par value, 100,000,000
Consist of: shares authorized $ 27,520
Class B Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 407,355
Class C Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 47,518
Class D Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 38,315
Paid-in capital in excess of par 53,277,900
Undistributed investment income--net 292,323
Undistributed realized capital gains on investments--net 496,803
Unrealized appreciation on investments--net 1,532,215
-----------
Net assets $56,119,949
===========
Net Asset Value: Class A--Based on net assets of $2,966,793 and 275,198 shares
outstanding $ 10.78
===========
Class B--Based on net assets of $43,903,341 and 4,073,552
shares outstanding $ 10.78
===========
Class C--Based on net assets of $5,110,798 and 475,177 shares
outstanding $ 10.76
===========
Class D--Based on net assets of $4,139,017 and 383,155 shares
outstanding $ 10.80
===========
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Year Ended August 31, 1999
<S> <S> <C> <C>
Investment Dividends $ 2,121,965
Income Interest and discount earned 1,391,644
(Notes 1d & 1e): -----------
Total income 3,513,609
-----------
Expenses: Account maintenance and distribution fees--Class B (Note 2) $ 358,903
Investment advisory fees (Note 2) 336,800
Professional fees 84,225
Transfer agent fees--Class B (Note 2) 67,453
Accounting services (Note 2) 63,913
Registration fees (Note 1f) 61,076
Printing and shareholder reports 58,410
Account maintenance and distribution fees--Class C (Note 2) 43,460
Directors' fees and expenses 14,526
Custodian fees 11,283
Account maintenance fees--Class D (Note 2) 11,226
Transfer agent fees--Class C (Note 2) 7,940
Transfer agent fees--Class D (Note 2) 5,398
Transfer agent fees--Class A (Note 2) 4,113
Amortization of organization expenses (Note 1f) 2,970
Pricing fees 898
Other 3,719
-----------
Total expenses before reimbursement 1,136,313
Reimbursement of expenses (Note 2) (210,349)
-----------
Total expenses after reimbursement 925,964
-----------
Investment income--net 2,587,645
-----------
Realized & Realized gain on investments--net 496,805
Unrealized Change in unrealized appreciation on investments--net (2,272,578)
Gain (Loss) on -----------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 811,872
(Notes 1b, 1c, ===========
1e & 3):
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended
August 31,
Increase (Decrease) in Net Assets: 1999 1998
<S> <S> <C> <C>
Operations: Investment income--net $ 2,587,645 $ 1,769,453
Realized gain on investments--net 496,805 2,638,989
Change in unrealized appreciation on investments--net (2,272,578) 3,189,795
----------- -----------
Net increase in net assets resulting from operations 811,872 7,598,237
----------- -----------
Dividends & Investment income--net:
Distributions to Class A (159,881) (103,403)
Shareholders Class B (1,864,650) (1,459,293)
(Note 1g): Class C (208,228) (190,662)
Class D (194,958) (101,671)
Realized gain on investments--net:
Class A (78,738) --
Class B (1,068,525) --
Class C (123,178) --
Class D (95,886) --
----------- -----------
Net decrease in net assets resulting from dividends and
distributions to shareholders (3,794,044) (1,855,029)
----------- -----------
Capital Share Net increase (decrease) in net assets derived from capital
Transactions share transactions 19,244,050 (257,080)
(Note 4): ----------- -----------
Net Assets: Total increase in net assets 16,261,878 5,486,128
Beginning of year 39,858,071 34,371,943
----------- -----------
End of year* $56,119,949 $39,858,071
=========== ===========
<FN>
*Undistributed investment income--net $ 292,323 $ 132,395
=========== ===========
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. Class A
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 1999++ 1998++ 1997++ 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 11.04 $ 9.46 $ 9.17 $ 9.15 $ 8.44
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .56 .57 .55 .60 .60
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (.07) 1.60 .29 .02 .59
-------- -------- -------- -------- --------
Total from investment operations .49 2.17 .84 .62 1.19
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.52) (.59) (.55) (.60) (.48)
Realized gain on investments--net (.23) -- -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.75) (.59) (.55) (.60) (.48)
-------- -------- -------- -------- --------
Net asset value, end of year $ 10.78 $ 11.04 $ 9.46 $ 9.17 $ 9.15
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 4.40% 23.30% 9.36% 6.61% 14.68%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .81% .59% .59% .56% .49%
Net Assets: ======== ======== ======== ======== ========
Expenses 1.16% 1.29% 1.51% 1.52% 1.87%
======== ======== ======== ======== ========
Investment income--net 4.93% 5.26% 5.79% 5.56% 6.60%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 2,967 $ 2,110 $ 1,376 $ 2,108 $ 3,253
Data: ======== ======== ======== ======== ========
Portfolio turnover 7.92% 13.36% 5.50% 25.98% 12.59%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. Class B
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 1999++ 1998++ 1997++ 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 11.03 $ 9.45 $ 9.17 $ 9.15 $ 8.44
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .47 .49 .47 .46 .49
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (.05) 1.60 .28 .09 .63
-------- -------- -------- -------- --------
Total from investment operations .42 2.09 .75 .55 1.12
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.44) (.51) (.47) (.53) (.41)
Realized gain on investments--net (.23) -- -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.67) (.51) (.47) (.53) (.41)
-------- -------- -------- -------- --------
Net asset value, end of year $ 10.78 $ 11.03 $ 9.45 $ 9.17 $ 9.15
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 3.70% 22.38% 8.39% 5.86% 13.72%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.59% 1.37% 1.36% 1.34% 1.27%
Net Assets: ======== ======== ======== ======== ========
Expenses 1.93% 2.06% 2.28% 2.29% 2.66%
======== ======== ======== ======== ========
Investment income--net 4.15% 4.52% 5.00% 4.79% 5.75%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 43,903 $ 32,540 $ 27,259 $ 35,702 $ 37,498
Data: ======== ======== ======== ======== ========
Portfolio turnover 7.92% 13.36% 5.50% 25.98% 12.59%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<CAPTION>
Class C
For the
Period
The following per share data and ratios have been derived Oct. 21,
from information provided in the financial statements. 1994++ to
For the Year Ended August 31, Aug. 31,
Increase (Decrease) in Net Asset Value: 1999++++ 1998++++ 1997++++ 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 11.01 $ 9.44 $ 9.15 $ 9.14 $ 8.17
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .46 .48 .47 .43 .42
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (.05) 1.59 .29 .10 .90
-------- -------- -------- -------- --------
Total from investment operations .41 2.07 .76 .53 1.32
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.43) (.50) (.47) (.52) (.35)
Realized gain on investments--net (.23) -- -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.66) (.50) (.47) (.52) (.35)
-------- -------- -------- -------- --------
Net asset value, end of period $ 10.76 $ 11.01 $ 9.44 $ 9.15 $ 9.14
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 3.67% 22.19% 8.48% 5.65% 16.50%+++
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.66% 1.40% 1.42% 1.40% 1.32%*
Net Assets: ======== ======== ======== ======== ========
Expenses 1.99% 2.08% 2.30% 2.34% 2.77%*
======== ======== ======== ======== ========
Investment income--net 4.07% 4.39% 4.79% 4.75% 5.56%*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 5,111 $ 2,846 $ 4,104 $ 2,107 $ 1,377
Data: ======== ======== ======== ======== ========
Portfolio turnover 7.92% 13.36% 5.50% 25.98% 12.59%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
Class D
For the
Period
The following per share data and ratios have been derived Oct. 21,
from information provided in the financial statements. 1994++ to
For the Year Ended August 31, Aug. 31,
Increase (Decrease) in Net Asset Value: 1999++++ 1998++++ 1997++++ 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 11.06 $ 9.47 $ 9.18 $ 9.15 $ 8.17
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .53 .54 .52 .47 .51
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net (.06) 1.61 .29 .13 .85
-------- -------- -------- -------- --------
Total from investment operations .47 2.15 .81 .60 1.36
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.50) (.56) (.52) (.57) (.38)
Realized gain on investments--net (.23) -- -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.73) (.56) (.52) (.57) (.38)
-------- -------- -------- -------- --------
Net asset value, end of period $ 10.80 $ 11.06 $ 9.47 $ 9.18 $ 9.15
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 4.13% 23.08% 9.08% 6.46% 17.03%+++
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.08% .84% .84% .82% .74%*
Net Assets: ======== ======== ======== ======== ========
Expenses 1.41% 1.54% 1.76% 1.75% 2.10%*
======== ======== ======== ======== ========
Investment income--net 4.66% 4.97% 5.47% 5.37% 6.14%*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 4,139 $ 2,362 $ 1,633 $ 1,416 $ 558
Data: ======== ======== ======== ======== ========
Portfolio turnover 7.92% 13.36% 5.50% 25.98% 12.59%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Utility Income Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's financial statements are
prepared in accordance with generally accepted accounting
principles, which may require the use of management accruals and
estimates. 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 that 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 that 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 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). 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.
(b) 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.
(c) 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.
* 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.
* Options--The Fund is authorized to write covered call and put
options and purchase put and call 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).
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
NOTES TO FINANCIAL STATEMENTS (continued)
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
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.
(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. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may
have passed are subsequently recorded when the Fund has determined
the ex-dividend date.
(f) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense over a period
not exceeding five years. Prepaid registration fees are charged to
expense as the related shares are issued.
(g) Dividends and distributions--Dividends from net investment are
declared and paid monthly. Distributions 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 ("MLFD" or the "Distributor"), a division of Princeton
Funds Distributor, Inc. ("PFD"), a wholly-owned subsidiary of
Merrill Lynch Group, Inc.
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 .55%, on an annual basis,
of the average daily value of the Fund's net assets. For the year
ended August 31, 1999, MLAM earned fees of $336,800, of which
$203,846 was voluntarily waived. MLAM also voluntarily reimbursed
the Fund for additional expenses of $6,503.
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 as follows:
Account Distribution
Maintenance Fee Fee
Class B .25% .50%
Class C .25% .55%
Class D .25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("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.
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
For the year ended August 31, 1999, MLFD earned underwriting
discounts and direct commissions 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 $ 32 $ 440
Class D $1,599 $17,865
For the year ended August 31, 1999, MLPF&S received contingent
deferred sales charges of $111,664 and $6,409 relating to
transactions in Class B and Class C Shares, respectively.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
During the year ended August 31, 1999, the Fund paid Merrill Lynch
Security Pricing Service, an affiliate of MLPF&S, $596 for security
price quotations to compute the net asset value of the Fund.
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, PFD, FDS, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended August 31, 1999 were $26,086,988 and $4,242,499,
respectively.
Net realized gains for the year ended August 31, 1999 and net
unrealized gains as of August 31, 1999 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $ 496,031 $ 1,532,215
Short-term investments 774 --
----------- -----------
Total $ 496,805 $ 1,532,215
=========== ===========
As of August 31, 1999, net unrealized appreciation for Federal
income tax purposes aggregated $1,532,215, of which $4,305,074
related to appreciated securities and $2,772,859 related to
depreciated securities. At August 31, 1999, the aggregate cost of
investments for Federal income tax purposes was $54,383,974.
4. Capital Share Transactions:
Net increase (decrease) in net assets derived from capital share
transactions was $19,244,050 and $(257,080) for the years ended
August 31, 1999 and August 31, 1998, respectively.
Transactions in shares for each class were as follows:
Class A Shares for the Year Dollar
Ended August 31, 1999 Shares Amount
Shares sold 368,816 $ 4,205,077
Shares issued to shareholders
in reinvestment of dividends
and distributions 18,901 210,873
---------- ------------
Total issued 387,717 4,415,950
Shares redeemed (303,675) (3,333,708)
---------- ------------
Net increase 84,042 $ 1,082,242
========== ============
Class A Shares for the Year Dollar
Ended August 31, 1998 Shares Amount
Shares sold 157,097 $ 1,700,920
Shares issued to share-
holders in reinvestment
of dividends 7,017 75,684
---------- ------------
Total issued 164,114 1,776,604
Shares redeemed (118,479) (1,288,076)
---------- ------------
Net increase 45,635 $ 488,528
========== ============
Class B Shares for the Year Dollar
Ended August 31, 1999 Shares Amount
Shares sold 2,688,999 $ 30,673,623
Shares issued to shareholders
in reinvestment of dividends
and distributions 204,036 2,283,441
---------- ------------
Total issued 2,893,035 32,957,064
Automatic conversion
of shares (22,767) (250,516)
Shares redeemed (1,746,015) (19,187,912)
---------- ------------
Net increase 1,124,253 $ 13,518,636
========== ============
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
Class B Shares for the Year Dollar
Ended August 31, 1998 Shares Amount
Shares sold 1,048,694 $ 11,448,291
Shares issued to share-
holders in reinvestment
of dividends 90,666 971,229
---------- ------------
Total issued 1,139,360 12,419,520
Automatic conversion
of shares (7,602) (83,415)
Shares redeemed (1,065,628) (11,501,723)
---------- ------------
Net increase 66,130 $ 834,382
========== ============
Class C Shares for the Year Dollar
Ended August 31, 1999 Shares Amount
Shares sold 440,870 $ 5,023,521
Shares issued to shareholders
in reinvestment of dividends
and distributions 23,868 266,774
---------- ------------
Total issued 464,738 5,290,295
Shares redeemed (248,041) (2,708,286)
---------- ------------
Net increase 216,697 $ 2,582,009
========== ============
Class C Shares for the Year Dollar
Ended August 31, 1998 Shares Amount
Shares sold 530,142 $ 5,643,805
Shares issued to share-
holders in reinvestment
of dividends 13,662 144,789
---------- ------------
Total issued 543,804 5,788,594
Shares redeemed (720,156) (7,839,162)
---------- ------------
Net decrease (176,352) $ (2,050,568)
========== ============
Class D Shares for the Year Dollar
Ended August 31, 1999 Shares Amount
Shares sold 376,168 $ 4,344,450
Automatic conversion
of shares 22,724 250,516
Shares issued to shareholders
in reinvestment of dividends
and distributions 22,556 252,399
---------- ------------
Total issued 421,448 4,847,365
Shares redeemed (251,902) (2,786,202)
---------- ------------
Net increase 169,546 $ 2,061,163
========== ============
Class D Shares for the Year Dollar
Ended August 31, 1998 Shares Amount
Shares sold 433,020 $ 4,680,930
Automatic conversion
of shares 7,589 83,415
Shares issued to share-
holders in reinvestment
of dividends 7,030 75,680
---------- ------------
Total issued 447,639 4,840,025
Shares redeemed (406,403) (4,369,447)
---------- ------------
Net increase 41,236 $ 470,578
========== ============
5. Subsequent Event:
On September 1, 1999, the Fund's Board of Directors declared an
ordinary income dividend in the amount of $.043474 per Class A
Share, $.036128 per Class B Share, $.035461 per Class C Share and
$.041081 per Class D Share, payable on September 10, 1999 to
shareholders of record as of September 2, 1999.
Merrill Lynch Utility Income Fund, Inc.
August 31, 1999
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Utility Income Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Utility Income Fund, Inc. as of August 31, 1999, the related
statements of operations for the year then ended and changes in net
assets for each of the years in the two-year period then ended, and
the financial highlights for each of the years in the five-year
period then ended. These financial statements and the financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at August
31, 1999 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Utility Income Fund, Inc. as of August 31, 1999, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
October 18, 1999
</AUDIT-REPORT>
PORTFOLIO INFORMATION (unaudited)
As of August 31, 1999
Percent of
Ten Largest Holdings Net Assets
New England Electric System 4.0%
Williams Companies Inc., 6.625% due
11/15/2004 3.7
MCI WorldCom Inc., 7.75% due 4/01/2007 3.7
Eastern Utilities Associates 3.5
GTE Corp., 6.36% due 4/15/2006 3.4
Consumers Energy, 6.375% due 2/01/2008 3.3
US West Capital Funding Inc., 6.375% due
7/15/2008 3.2
Ameren Corporation 3.1
Dominion Resources, Inc. 3.0
Allegheny Energy, Inc. 2.9
Stock Portfolio Changes
For the Quarter Ended August 31, 1999
Additions
Sierra Pacific Resources
Deletions
Nevada Power Company
United Water Resources Inc.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Arthur Zeikel, Director
Walter D. Rogers, Senior Vice President and
Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Ira P. Shapiro, Secretary
Custodian
State Street Bank and Trust Company
One Heritage Drive, P2N
North Quincy, MA 02171
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
