<PAGE>
RCM
STRATEGIC
GLOBAL
GOVERNMENT
FUND
QUARTERLY
REPORT
APRIL 30, 1996
<PAGE>
LETTER TO SHAREHOLDERS
- ----------------------
PHOTO
Dear Shareholders:
In this last fiscal quarter, the bond market took a decidedly
awkward turn. Bond market participants began 1996 with
optimism. Expectations were high about the successful
conclusion of balanced Federal budget talks, stable economic
growth and more Federal Reserve support of lower interest rates. The bond market
experienced a great deal of anticipation about potentially rapid economic growth
and rising inflation. Intermediate-term interest rates climbed 1.2% from the end
of January to the end of April. For the U.S. bond market as a whole, this sudden
rate change resulted in negative returns. The RCM Strategic Global Government
Fund (NYSE symbol: RCS), on the other hand, did exceptionally well under these
bond market circumstances. Performance was greatly aided by global
diversification. RCS earned and paid a consistent dividend of $.074 per month
while keeping its net asset value volatility consistent with other
intermediate-term risk investments.
During the course of a quarter, the fund's portfolio managers answer questions
from shareholders and the brokerage community. In this report, we have included
some of these inquiries and our responses to them. Also, as a supplement, this
quarterly report highlights DURATION: THE YARDSTICK FOR MEASURING BOND FUND
RISK. We believe it is important that our shareholders and bond fund investors
generally know what to look for in distinguishing one bond fund from another. We
think that RCS's risk-adjusted approach to managing bonds will continue to offer
exceptional value.
We thank you for your continued interest in RCS.
Respectfully,
Gary W. Schreyer
CHAIRMAN
MAY 22, 1996
<PAGE>
FUND HIGHLIGHTS
- ---------------
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
<TABLE>
<CAPTION>
PERIOD ENDED* 4/30/96 1/31/96 10/31/95 7/31/95 4/30/95
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total investment income $ 8,465 $8,314 $8,338 $8,221 $8,427
Total investment income per share 0.28 0.27 0.27 0.27 0.28
Net investment income 7,437 7,250 7,286 7,139 7,496
Net investment income per share 0.24 0.24 0.24 0.23 0.25
Net realized and unrealized gain (loss) (9,602) 9,079 1,909 4,830 6,230
Net realized and unrealized gain (loss) per share (0.31) 0.30 0.06 0.16 0.20
Net asset value at end of period 11.35 11.64 11.33 11.25 11.08
Market price at end of period 9.63 10.25 10.13 10.13 9.75
Total return on market price (3.99)% 3.45% 2.20% 6.10% 3.60%
Total return on net asset value (0.30)% 4.99% 2.93% 3.74% 4.44%
Dividend from net investment income $ 0.22 $ 0.23 $ 0.22 $ 0.22 $ 0.22
Effective dividend yield** 9.23% 8.66% 8.77% 8.77% 9.11%
</TABLE>
<TABLE>
<CAPTION>
KEY CHARACTERISTICS 4/30/96
- -------------------------------------------------
<S> <C>
MONTHLY DIVIDEND PER SHARE $ 0.074
EFFECTIVE DIVIDEND YIELD** 9.23%
MARKET PRICE PER SHARE $ 9.63
NET ASSET VALUE PER SHARE $ 11.35
DURATION 4.6 YEARS
AVERAGE CREDIT QUALITY AA
</TABLE>
* IN THOUSANDS, EXCEPT PER SHARE DATA.
** LAST DIVIDEND DIVIDED BY MARKET PRICE AND ANNUALIZED.
1
<PAGE>
FUND MANAGERS' DISCUSSION AND ANALYSIS
- --------------------------------------
WHAT DID THE BOND MARKET DO THIS FISCAL QUARTER?
The U.S. bond market had a particularly difficult quarter. Interest rates for
U.S. Treasuries rose as much as 1.2% for intermediate-term maturities. The bond
market interpreted recent indicators to suggest a rapid acceleration of U.S.
economic growth and inflation. At the same time, wheat and oil prices increased
significantly, appearing to confirm inflation fears. With higher U.S. rates,
European interest rates followed, but increased only about one-third as much as
U.S. rates. For example, the German government 5-year rate increased 0.4%
compared to 1.2% for the 5-year U.S. rate. In the last few years, European rates
have moved in tandem with U.S. rates. However, for European rates to move only a
fraction of the U.S. increase signals continuing economic weakness for the core
European countries. The German central bank lowered short-term interest rates in
April by 0.5%, which helped support European bonds generally.
HOW DID RCS PERFORM THIS QUARTER?
Considering the volatility of the U.S. bond market, this was an excellent
quarter for RCS on a relative basis. For example, the Salomon Brothers' Mortgage
Security and World Government Bond Indices lost 1.6% and 0.9%, respectively, for
the same period. For the fiscal quarter, RCS had essentially a break-even
quarter on net asset value with a loss of 0.3%. Total return performance is
measured in two ways: (1) on net asset value and (2) on stock market price. Both
methods include changes in per share values and a reinvestment assumption for
dividends paid. Portfolio decisions by the investment managers are directly
responsible for the performance on net asset value. Performance on stock market
price will differ as the stock price adjusts or fails to adjust to changes in
net asset value. The total return on a stock price basis was a loss of nearly
4.0%, as the stock's discount to net asset value widened.
WHY ARE CLOSED-END BOND FUNDS TRADING AT A DISCOUNT TO NET ASSET VALUE?
When the stock market price of a closed-end fund is below its net asset value,
the fund is trading at a "discount." Discounts are quite wide for RCS and other
closed-end bond funds. The fund's net asset value was worth $11.35 per share,
yet the stock closed at $9.63 per share, resulting in a 15.2% discount at
quarter-end. Part of the explanation is the aftermath of 1994 when the worst
bond market
2
<PAGE>
FUND MANAGERS' DISCUSSION AND ANALYSIS
- --------------------------------------
in almost 70 years widened discounts substantially. Investors were
characteristically wary of rushing back to closed-end funds in 1995. Although,
in 1995, bonds had a great year in absolute returns, they were up against huge
stock market performance which may have also diminished investor interest.
In 1996, there has been much more positive coverage in the financial press about
the opportunities presented by the discounts. Discounts present a substantial
yield opportunity for investors. A number of funds have explored different ways
to "solve" the discount but without meaningful, sustainable results. In the
1990-1991 economic cycle, many closed-end bond funds did see their discounts
diminish or go away. Some observers believe there is a cyclical aspect to the
discount phenomena. The key to eliminating the discount continues to be
increasing investor interest in closed-end funds and RCS in particular. In
addition to its other attributes, RCS is unique among closed-end bond funds in
its frequency and quality of investor communications. RCS's frequent updates
allow investors to know where the portfolio is positioned and how it has
changed.
WHERE IS THE PORTFOLIO POSITIONED TODAY?
The fund's country positions are 34.8% U.S. mortgages, 47.4% Europe and 17.8%
Latin America based on total duration. The U.S. mortgages are predominantly
liquid and standard U.S. Government or agency issues, including FNMA, GNMA and
FHLMC.
<TABLE>
<CAPTION>
PORTFOLIO DURATION BY COUNTRY
APRIL 30, 1996
PERCENTAGE OF
DURATION TOTAL
COUNTRY (YEARS) DURATION
- ------------------------------------------------------------------------------------------
<S> <C> <C>
United States 1.6 34.8%
Germany 0.8 16.1%
The Netherlands 0.5 10.7%
Switzerland 0.4 8.0%
Belgium 0.3 7.4%
Argentina 0.3 7.2%
Mexico 0.3 5.7%
Finland 0.2 5.2%
Brazil 0.2 4.9%
---- ----
Total 4.6 100.0%
</TABLE>
3
<PAGE>
FUND MANAGERS' DISCUSSION AND ANALYSIS
- --------------------------------------
The European positions are held in U.S. dollar-based interest rate swaps. The
interest rates swaps are often a more efficient way to hold foreign bonds
without taking currency risk and to help RCS to achieve its income and
performance goals. At quarter-end, RCS held foreign swaps with an aggregate
notional amount of $200 million, predominantly in 5- and 7-year interest rates.
The new role for interest rates swaps was highlighted in RCS's October 1995
Quarterly Report. The increase in total duration from the swaps is included in
the preceding table. All RCS positions are denominated in U.S. dollars at
quarter-end.
WHY WAS RCS MAINLY A MORTGAGE FUND LAST YEAR?
There were a number of key reasons why RCS focused on U.S. mortgages in 1995.
First, in the wake of 1994's unfortunate bond market, it was extremely important
to deliver a consistent dividend. Several mortgage funds failed to achieve that
task. Second, the fund's expectation was that European bonds would not
outperform U.S. bonds both in terms of interest rate movements and the probable
strengthening of the U.S. dollar. Third, although the fund participated in the
market's rally, the amount of risk required to fully recoup the effects of 1994
would have made for a level of risk inconsistent with the fund's dividend goals.
WHY DID SEVERAL MORTGAGE FUNDS OTHER THAN RCS CUT THEIR DIVIDEND RECENTLY?
Mortgage securities provide a substantial yield but with an added responsibility
of managing a dynamic risk level. When interest rates decrease, homeowners
refinance their mortgages. The new refinancing activity pays down the mortgage
securities faster, which decreases the yield on the securities as principal
flows in and is reinvested at lower rates. If a fund is not active in planning
for replacing the yield, it risks a cut in dividend. RCS has a wide range of
investment tools available to meet income and dividend requirements. In 1995,
RCS met the mortgage challenge through diversification into Europe and managing
the overall mortgage positions in a focused, disciplined manner.
4
<PAGE>
FUND MANAGERS' DISCUSSION AND ANALYSIS
- --------------------------------------
IS RCS EARNING ITS DIVIDEND?
Yes, RCS is earning its dividend, and those dividends remain a primary
objective. This question is often asked by financial consultants since some
funds in the past have tried to bolster dividend payments by playing with
financial options or, in other cases, failing to use proper accounting methods
on bonds purchased at a premium. RCS has not used option strategies. Any
premiums on securities in RCS are amortized to reflect the yield purchased.
Funds that buy premium securities and do not amortize will risk a cumulative
charge to capital gain/loss upon sale or maturity.
In the fiscal year 1995, the market sectors contributing to income were 64.1%
mortgage pass-throughs, 19.4% collateralized mortgage obligations, 13.4%
emerging markets, 2.3% developed foreign and 0.8% other. The market sectors
contributing to the first-quarter income are presented below.
MARKET SECTOR INCOME CONTRIBUTION
PERIOD ENDED APRIL 30, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Developed Foreign 11.5%
Emerging Markets 15.8%
U.S. Short-Term Investments 0.6%
U.S. Collateralized Mortgage Obligations 18.2%
U.S. Mortgage Pass-Throughs 53.9%
</TABLE>
5
<PAGE>
FUND MANAGERS' DISCUSSION AND ANALYSIS
- --------------------------------------
WHY DOES RCS EMPHASIZE "DURATION"?
Although a bond appears to be a pretty simple idea, a portfolio of bonds has a
wide array of characteristics that can make or break performance. Just as stocks
can be affected by many types of risks, bonds face many risks as well, including
credit, maturity, currency, country selection, and mortgage prepayment risks.
Among the most important factors is how sensitive a bond portfolio is to changes
in interest rates. This measure is called duration and is highlighted in this
quarter's Special Focus on pages 10 and 11. At quarter-end, the fund's duration
was 4.6 years, approximately comparable to a security with a 6-year maturity.
WHAT ARE THE CREDIT QUALITY RATINGS OF RCS'S INVESTMENTS?
Credit quality is just one dimension of a bond's performance capability. For
example, a 2-year and a 30-year maturity U.S. Treasury, both with the full
credit of the U.S. Government, can have very different performance
characteristics. Duration risk is more significant for investment grade bonds,
such as those in RCS. The few securities in RCS with credit ratings below BBB
are government-backed emerging market investments consistent with the fund's
prospectus. The overall average credit rating for the securities in RCS was AA.
<TABLE>
<CAPTION>
CREDIT QUALITY
APRIL 30, 1996
PERCENTAGE OF
RATING TOTAL INVESTMENTS
- ------------------------------------------------------------------------------------------------
<S> <C>
AAA 79.9%
AA 0.2%
A 6.1%
BB 7.9%
B 5.9%
------
Total 100.0%
</TABLE>
6
<PAGE>
FUND MANAGERS' DISCUSSION AND ANALYSIS
- --------------------------------------
WHAT IS YOUR OUTLOOK FOR THE BOND MARKET?
Fundamentally, RCM Capital Management, L.L.C. ("RCM"), the investment manager
for RCS, believes that the U.S. economy has the strength to grow at about a 2.5%
trend. The economy is not likely to accelerate substantially above that on a
sustainable basis, and the bond market should stabilize after the "growth scare"
settles down. Inflation is the perennial wildcard, but is not anticipated to
rise sufficiently to warrant considerably higher rates. In the last quarter,
potential and continued gridlock in Washington added some negative tone to the
market as investors had high expectations for reduced spending and, therefore,
lower interest rates as the year began. At this time, RCM expects the Federal
Reserve to be on hold through its November meeting. Expectations for long-term
interest rates are to settle at current levels by year-end.
On a global perspective, Europe is in the process of preparing for monetary
union requiring that countries demonstrate fiscal conservatism, lower spending
and deficit reduction. The economic weakness in the core European countries will
improve later this year as easier monetary policies encourage consumer demand.
However, the problems of long-term unemployment and long-term economic
development are substantial and likely to support stronger bond market
fundamentals than in the United States.
Latin America is roughly on schedule with economic recovery. Mexico continues to
be the key factor in the region. The U.S. and international efforts to support
Mexico appear to be reasonably successful.
WHAT ARE THE KEY REASONS TO OWN RCS?
RCS pays a substantial income dividend. At quarter-end market price, the last
dividend represents an annualized 9.2% yield. More importantly, RCS delivers
dividends with a managed risk portfolio while some funds deliver yield
regardless of total risk exposure. RCS earned its dividend while other mortgage
funds faced dividend cuts in 1995. There are standard and innovative aspects in
how RCS is managed. Other funds may take more risk. As market conditions change,
some of these funds will do better, and some will do worse than RCS. However,
more risk means more volatility in returns. RCS focuses on risk management and
performance to achieve a complete investment package.
7
<PAGE>
INVESTMENTS IN SECURITIES AND NET ASSETS
- ----------------------------------------
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
COUNTRY/ PRINCIPAL VALUE
CURRENCY (000'S) DESCRIPTION (US$)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENTS IN DEBT SECURITIES - 120.7%*
ARGENTINA - 5.6%
USD Republic of Argentina
15,000 5.25% 03/31/23 $ 8,175,000
4,000 8.38% 12/20/03 3,515,000
4,000 9.25% 02/23/01 3,815,000
4,000 10.95%, 11/01/99 4,170,000
-------------
Total Argentina 19,675,000
-------------
BRAZIL - 7.1%
USD Federal Republic of Brazil C-Bond
15,723 8.00% 04/15/14 9,482,754
Petrobras Euronote
15,000 8.75% 12/09/96 15,112,500
-------------
Total Brazil 24,595,254
-------------
MEXICO - 3.8%
USD United Mexican States
11,000 6.25% 12/31/19 7,246,250
6,000 9.75% 02/06/01 5,910,000
-------------
Total Mexico 13,156,250
-------------
UNITED STATES - 104.2%
USD MORTGAGE-BACKED SECURITIES -- 80.2%
8,747 FNMA 7.00%, 2025 8,436,941
8,546 FHLMC 7.50%, 2025 - 2026 8,459,370
10,083 GNMA 7.50%, 2006 - 2026 9,991,386
22,013 FHLMC 8.00%, 2023 - 2025 22,255,657
5,582 GNMA 8.00%, 2016 - 2022 5,712,221
104,749 FNMA 8.50%, 2017 - 2025 107,749,492
1,789 GNMA 8.50%, 2016 - 2026 1,852,660
78,800 FNMA 7.50%, 2026 TBA 77,942,656
25,000 FHLMC 7.50%, 2026 TBA 24,746,500
10,650 FHA Project Pool 56, 7.43%, 11/01/22 10,601,987
-------------
Total Mortgage-Backed Securities 277,748,870
-------------
</TABLE>
* PERCENTAGE OF NET ASSETS
8
<PAGE>
INVESTMENTS IN SECURITIES AND NET ASSETS
- ----------------------------------------
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
COUNTRY/ PRINCIPAL VALUE
CURRENCY (000'S) DESCRIPTION (US$)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
USD COLLATERALIZED MORTGAGE OBLIGATIONS - 24.0%
DLJ Mortgage Acceptance Corp.
1,000 Series 1994-MF11, Class A2 8.10%, 06/18/04 $ 1,006,211
4,850 Series 1994-MF11, Class A3 8.10%, 06/18/04 4,846,779
Federal Home Loan Mortgage Corp.
17,932 Series 1667, Class PE 6.00%, 03/15/08 17,024,193
22,786 Series 1665, Class N 6.50%, 01/15/24 20,189,929
G E Capital Mortgage Services, Inc.
4,705 Series 1994-12, Class B1 6.00%, 04/25/09 4,227,831
9,131 Series 1994-9, Class B1 6.50%, 02/25/24 7,960,685
22,000 Series 1994-10, Class A15 6.50%, 03/25/24 19,566,250
Residential Funding Mortgage Sec. I
3,902 Series 1993-S43, Class M-2 6.50%, 11/25/23 3,339,888
5,720 Series 1993-S47, Class M-2 6.50%, 12/25/23 4,896,045
-------------
Total Collateralized Mortgage Obligations 83,057,811
-------------
TOTAL INVESTMENTS -- (COST $415,920,360) 418,233,185
-------------
Payable for investments purchased -- (32.3%) (111,841,569)
Investments sold on a forward commitment basis, net -- (29.1%)+ (100,943,699)
Other assets less liabilities -- 40.7% 140,899,031
-------------
NET ASSETS -- 100.0% $ 346,346,948
-------------
-------------
</TABLE>
<TABLE>
<S> <C>
TERMS
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
TBA -- To Be Announced
USD -- United States Dollar
</TABLE>
+ On a forward commitment basis, the fund has agreed to sell U.S. Treasury
securities:
<TABLE>
<CAPTION>
PRINCIPAL VALUE
CURRENCY (000'S) DESCRIPTION (US$)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
USD 74,750 U.S. Treasury Notes 6.50%, 5/15/05 $ 73,745,360
29,000 U.S. Treasury Bonds 7.13%, 2/15/23 29,151,090
-------------
$ 102,896,450
-------------
-------------
</TABLE>
9
<PAGE>
SPECIAL FOCUS
- ----------------
DURATION: THE YARDSTICK FOR MEASURING BOND FUND RISK
One of the challenges for investors is to assess a bond fund's return and risk
characteristics. Over the years, services have grown to help meet the
informational needs of investors through such companies as Lipper Analytical
Services and Morningstar. Similarly, many brokerage firms have developed in-
house talent to evaluate closed-end mutual funds and provide research to their
brokers and clients.
In assessing a bond's risk, many different characteristics come into play.
Long-term maturity can signal more risk than a short-term maturity. Country
exposure is extremely important. The credit rating can indicate chance of
default. The liquidity of a portfolio can influence a manager's ability to
adjust to market conditions. Corporate bonds perform differently than mortgage
bonds or foreign bonds.
Despite these differences, bonds have one important characteristic in common.
Their returns are all fundamentally tied to changing interest rates. Measuring
how sensitive a bond is to changing interest rates provides a yardstick for
making investment decisions about risk and return. However, what tool can
compare these bonds on an "apple-to-apple" basis? That tool is the concept of
duration. The formal definition of duration is the percentage change in the
price of a particular fixed income security (bond) or portfolio of fixed income
securities for a 1% change in interest rates.
It is commonly understood that a long-term maturity bond has more risk than a
short-term maturity bond. For example, the price of a 30-year Treasury bond can
be expected to go up or down by 13% if 30-year interest rates change by 1%. A
5-year Treasury bond can be expected to go up or down by only 4% if 5-year
interest rates change by 1%. But suppose that instead of the usual 30-year
maturity Treasury bond with semi-annual coupons, we have a bond that pays no
coupons and only pays principal at the end of 30 years. These two 30-year bonds
can share the exact same maturity. However, without the coupons, the price risk
of the second bond increases to 29% for a 1% change in rates.
This fact highlights a key issue: the timing of future cash payments from a bond
(coupons and principal) has a big impact on the bond's sensitivity to rate
changes. Duration attempts to capture this sensitivity by measuring each bond's
cash payments over time. If two bonds have the same maturity and payment dates
but one has a coupon higher than the other, the higher coupon bond is paying
more cash earlier than the other. It will have a lower duration and, therefore,
less sensitivity to interest rate changes. To a large extent, duration takes the
idea of maturity and adjusts it to reflect how cash is actually received or is
expected to be received. The following graph shows a range of duration risk for
U.S. Treasuries and where RCS is in that range.
10
<PAGE>
SPECIAL FOCUS
- ----------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
REPRESENTATIVE DURATION RISK
(FOR DIFFERENT MATURITIES) DURATION +/-
<S> <C>
3 YR 2.7%
5 YR 4.2%
7 YR 5.6%
10 YR 7.2%
20 YR 10.9%
30 YR 12.6%
RCS 4.6%
</TABLE>
The table on page 3 displays the fund's global diversification in terms of each
country's contribution to total duration. This is important and is a little
different than most funds. For example, many funds will show a 5% market value
investment in Germany. However, if that 5% investment is in 10-year bonds or in
2-year bonds, the price duration risk will be very different. By expressing
country exposure as a percentage of total duration, the table communicates both
where the exposure is and the extent of its sensitivity to changing interest
rates.
As an indicator, duration is not perfect. It makes assumptions that all interest
rates (foreign and domestic) move together by the same amount. It also does not
include the risk of changes in foreign currency exchange rates to the fund's
portfolio (RCS is denominated in U.S. dollars). However, of the alternative ways
of measuring a bond fund's sensitivity to interest rates, duration is the best
indicator available.
When comparing bond funds, look for the duration totals and duration by market.
RCS has been a leader in promoting the use of duration.
11
<PAGE>
DIVIDEND REINVESTMENT PLAN
- --------------------------------
Under the fund's Dividend Reinvestment Plan (the "Plan"), a stockholder whose
shares of common stock are registered in his or her own name will have all
distributions from the fund reinvested automatically by State Street Bank and
Trust Company (the "Plan Agent") as agent under the Plan, unless the stockholder
elects to receive cash. Distributions with respect to shares registered in the
name of a broker-dealer or other nominee (that is, in "street name") will be
reinvested by the broker or nominee in additional shares under the Plan, unless
that service is not provided by the broker or nominee or the stockholder elects
to receive distributions in cash.
When the market price of the common stock is equal to or exceeds the net asset
value per share of the common stock on the dividend payment date, Plan
participants will be issued shares of common stock valued at the net asset value
most recently determined or, if net asset value is less than 95% of the then
current market price of the common stock, then at 95% of the market value.
If the market price of the common stock is less than the net asset value of the
common stock, or if the fund declares a dividend or capital gains distribution
payable only in cash, a broker-dealer not affiliated with the fund's principal
underwriter, as purchasing agent for Plan participants (the "Purchasing Agent"),
will buy common stock in the open market for the participants' accounts. If the
market price exceeds the net asset value of shares before the Purchasing Agent
has completed its purchases, the Purchasing Agent is permitted to cease
purchasing shares and the fund may issue the remaining shares.
Plan participants are subject to no charge for reinvesting dividends and capital
gains distributions. The Plan Agent's fees for handling the reinvestment of
dividends and capital gains distributions will be paid by the fund. No brokerage
charges apply with respect to shares of common stock issued directly by the
fund. Each Plan participant will, however, bear a proportionate share of
brokerage commissions incurred with respect to open market purchases made in
connection with the reinvestment of dividends or capital gains distributions.
Plan participants may terminate their participation in the Plan by giving
written notice to the Plan Agent. The fund reserves the right to amend or
terminate the Plan. To obtain a full description of the Plan or to obtain any
other information about the Plan, please contact State Street Bank and Trust
Company, P.O. Box 8209, Boston, Massachusetts 02266-8209 or call (800) 426-5523.
12
<PAGE>
CORPORATE INFORMATION
- -----------------------------
DIRECTORS
Gary W. Schreyer, CHAIRMAN
William A. Hasler
Francis E. Lundy
James M. Whitaker
AUDIT COMMITTEE
William A. Hasler
Francis E. Lundy
James M. Whitaker
NOMINATING COMMITTEE
Gary W. Schreyer
William A. Hasler
OFFICERS
Richard W. Ingram
PRESIDENT, CHIEF FINANCIAL OFFICER AND ASSISTANT TREASURER
John E. Pelletier
VICE PRESIDENT AND ASSISTANT SECRETARY
Elizabeth A. Bachman
VICE PRESIDENT AND ASSISTANT SECRETARY
Caroline M. Hirst
SECRETARY AND TREASURER
INVESTMENT MANAGER
RCM Capital Management, L.L.C.
Four Embarcadero Center
San Francisco, California 94111
ADMINISTRATOR, CUSTODIAN AND
TRANSFER AGENT
State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
(800) 426-5523
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, Massachusetts 02109
COUNSEL
Ropes & Gray
One International Place
Boston, Massachusetts 02110-2624
RCM Capital Management, L.L.C., is an institutional money manager headquartered
in San Francisco with approximately $26 billion in managed assets, including
approximately $11 billion in fixed income securities. RCM has over 20 years of
experience in active fixed income investment management for corporate retirement
plans, endowments, foundations, insurance companies, nuclear decommissioning
trusts and select individuals.
<PAGE>
RCM STRATEGIC GLOBAL
GOVERNMENT FUND, INC.
MARKET PRICES FOR RCS SHARES ARE PUBLISHED DAILY IN THE WALL STREET JOURNAL AS
"RCM STRATG," AND THE NEW YORK TIMES AS "RCMSTGLFD," AND LOCAL NEWSPAPERS IN
THE NEW YORK STOCK EXCHANGE LISTINGS. NET ASSET VALUE IS PUBLISHED WEEKLY AND
APPEARS EACH MONDAY IN THE WALL STREET JOURNAL AND THE NEW YORK TIMES UNDER THE
CAPTION, CLOSED-END BOND FUNDS. THE WEEKLY NET ASSET VALUE IS ALSO AVAILABLE
EACH SATURDAY IN BARRON'S.
THIS REPORT IS SENT TO THE SHAREHOLDERS OF RCS FOR THEIR INFORMATION. THE
FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE FUND.
THIS IS NOT A PROSPECTUS, CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE
PURCHASE OR SALE OF SHARES OF THE FUND OR OF ANY SECURITIES MENTIONED IN THE
REPORT. IF YOU WOULD LIKE A COPY OF THE MOST RECENT ANNUAL REPORT (INCLUDING
AUDITED FINANCIAL STATEMENTS), PLEASE CONTACT YOUR BROKER OR RCM DIRECTLY AT
(415) 954-5400.
INVESTMENT MANAGER:
RCM CAPITAL MANAGEMENT, L.L.C.
FOUR EMBARCADERO CENTER
SAN FRANCISCO, CALIFORNIA 94111
