MERRILL LYNCH
GLOBAL SMALLCAP
FUND, INC.
FUND LOGO
Quarterly Report
March 31, 1997
This report is not authorized for use as an offer of sale or
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.
<PAGE>
Merrill Lynch
Global SmallCap
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH GLOBAL SMALLCAP FUND, INC.
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
Norman R. Harvey, Senior Vice President
Andrew John Bascand, Vice President
R. Elise Baum, Vice President
Donald C. Burke, Vice President
Kenneth Chiang, Vice President
Adrian Holmes, Vice President
Grace Pineda, Vice President
James Russell, Vice President
Gerald M. Richard, Treasurer
Robert Harris, Secretary
<PAGE>
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
Merrill Lynch
Global SmallCap
Fund, Inc.
Management
Team
Andrew John Bascand--Senior Portfolio Manager/Asset Allocator. As
the Fund's Asset Allocator, Mr. Bascand is primarily responsible for
determining the allocation of the Fund's assets among equity markets
in the United States, Europe, the emerging markets and the Pacific
Basin.
R. Elise Baum--Co-Portfolio Manager--US Investments. Ms. Baum is
primarily responsible for the Fund's investments in the United
States.
Kenneth Chiang--Co-Portfolio Manager--Emerging Markets Investments.
Mr. Chiang is primarily responsible for the Fund's investments in
emerging markets in Asia.
Adrian Holmes--Co-Portfolio Manager--European Investments. Mr.
Holmes is primarily responsible for the Fund's European investments.
Grace Pineda--Co-Portfolio Manager--Emerging Markets Investments.
Ms. Pineda is primarily responsible for investments in emerging
markets in Latin America.
James Russell--Co-Portfolio Manager--Japanese Investments. Mr.
Russell is primarily responsible for the Fund's Japanese
investments.
<PAGE>
DEAR SHAREHOLDER
Overall, global small cap issues significantly underperformed large
cap issues during the three months ended March 31, 1997. The
unmanaged Salomon Brothers Extended Market Index, a global small cap
benchmark, posted a decline of 3.0% (in US dollar terms) for the
quarter, compared with a 0.1% rise in the Financial Times/Standard &
Poor's--Actuaries World Index, an unmanaged larger-capitalization
global index.
The US dollar continued to appreciate against major currencies,
rising from YEN 115.9 to YEN 123.6, and from DM1.54 to DM1.67 in
Japan and Germany, respectively.
In US dollar terms, the major best-performing small cap markets in
the March quarter were Germany (+9.4%), followed by Switzerland
(+7.9%) and the Netherlands (+7.4%). Among the other major markets,
the worst-performing market was Japan, falling 14.5%. The US market
was also down, falling by 4.0%. Emerging markets outperformed
developed country small cap returns during the three months ended
March 31, 1997, declining by only 1.5%. The strongest emerging
markets returns were in Latin America.
For the three-month period ended March 31, 1997, total returns for
Merrill Lynch Global SmallCap Fund, Inc.'s Class A, Class B, Class C
and Class D Shares were -0.10%, -0.41%, -0.41% and -0.20%,
respectively. (Results shown do not reflect sales charges and would
be lower if sales charges were included. Complete performance
information, including average annual total returns, can be found on
pages 4--6 of this report to shareholders.) Key factors associated
with the Fund's outperformance, relative to the Salomon Brothers
Extended Market Index, were the strategic overweighting of emerging
markets and underweighting of the United States, and stock selection
in Europe.
Portfolio Matters
We significantly increased the Fund's exposure to emerging markets
during the quarter ended March 31, 1997. At the end of March, the
emerging markets weight rose to 15% of net assets from 10% at
December 31, 1996. Overall, the Fund's small cap equity exposure
rose to 94% of net assets from 87%.
<PAGE>
Economic and Investment
Environment
We maintained a view that global economic activity is accelerating.
The March quarter's data strengthened this view. In general, a
stronger global growth environment should support small cap
performance relative to large cap issues. In the United States, the
latest National Association of Purchasing Managers' business survey
continued to suggest that business activity is expanding above trend
growth rates. Employment growth in the United States was also
robust, causing rapid income expansion which, in turn, helped lift
retail and vehicle sales and maintain a high level of residential
building. The Conference Board's Consumer Confidence Index hit a
nine-year high in January.
Against that background, and combined with the very significant
narrowing of equity and non-investment grade debt yields, US Federal
Reserve Board Chairman Alan Greenspan twice suggested that the
benign low-inflation/moderate economic growth scenario may be
nearing an end, and subsequently increased the Federal Funds rate by
25 basis points (0.25%) in late March. US bond yields rose
significantly during the March quarter with the 30-year bond yield
rising from a low of 6.4% to 7.0%.
The significant rise in many European equity markets also reduced
our expectations for equity returns in Europe compared with three
months ago. Specifically, in Germany, we saw a more rapid
acceleration of business activity than expected. The sharp decline
of the Deutschemark appears to have improved export orders. We doubt
whether German interest rates will be lowered further, and despite
potential upward revisions to corporate earnings forecasts, we are
more cautious on the German equity market.
In contrast, emerging markets equity valuations generally remain
fair and offer relative attraction compared with Europe. We are also
significantly invested in several larger markets such as Mexico,
Malaysia and Brazil. Most recently, we increased small cap exposure
in Indonesia.
Looking ahead over the next six months, we believe key issues for
all equity markets will be the investor response to a likely further
firming of US interest rates, and a likely slowdown in Japanese
foreign bond and equity buying. Both factors, in conjunction with
stronger global activity, could serve to lift small cap returns
relative to large cap returns. Therefore, we have reduced cash
balances in expectation of a period of small cap outperformance.
In Conclusion
We remain concerned about the short-term outlook for larger-
capitalization stocks in many major stock markets. However, stronger
global economic activity may favor smaller-capitalization stocks
whose earnings tend to be more geared to the economic cycle. We will
continue to invest in a diversified regional selection of small cap
stocks including those in emerging markets.
<PAGE>
We thank you for your continued interest in Merrill Lynch Global
SmallCap Fund, Inc., and we look forward to reviewing our outlook
and strategy with you again in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Andrew Bascand)
Andrew Bascand
Senior Portfolio Manager/
Asset Allocator
(R. Elise Baum)
R. Elise Baum
Co-Portfolio Manager
US Investments
(Kenneth Chiang)
Kenneth Chiang
Co-Portfolio Manager
Emerging Markets
Investments--Asia
<PAGE>
(Adrian C. Holmes)
Adrian C. Holmes
Co-Portfolio Manager
European Investments
(Grace Pineda)
Grace Pineda
Co-Portfolio Manager
Emerging Markets Investments--
Latin America
(James Russell)
James Russell
Co-Portfolio Manager
Japanese Investments
April 22, 1997
Effective April 1997, R. Elise Baum joined Merrill Lynch Global
SmallCap Fund, Inc. as Co-Portfolio Manager. Ms. Baum is primarily
responsible for the Fund's investments in North America. Ms. Baum
joined Merrill Lynch Asset Management, L.P. (the "Manager") in 1995,
and has been an employee of the Manager since 1992.
PERFORMANCE DATA
<PAGE>
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 5.25% 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. However, in the
case of certain eligible investors, the shares 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 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after approximately 8 years. (There is no initial
sales charge for automatic share conversions.)
* Class C Shares are subject to a distribution fee of 0.75% 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 5.25% 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 "Average Annual Total
Return" tables as well as the total returns and cumulative total
returns in the "Performance Summary" 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.
<PAGE>
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $9.82 $9.37 $0.005 -- - 4.53%
1995 9.37 9.27 0.053 $0.105 + 0.66
1996 9.27 9.81 0.185 0.710 +15.61
1/1/97--3/31/97 9.81 9.80 -- -- - 0.10
------ ------
Total $0.243 Total $0.815
Cumulative total return as of 3/31/97: +10.99%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not include sales charge; results would be lower if
sales charge was included.
</TABLE>
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
8/5/94--12/31/94 $10.00 $9.34 $0.005 -- - 6.55%
1995 9.34 9.19 0.053 $0.052 - 0.45
1996 9.19 9.72 0.185 0.601 +14.43
1/1/97--3/31/97 9.72 9.68 -- -- - 0.41
------ ------
Total $0.243 Total $0.653
Cumulative total return as of 3/31/97: +6.01%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not reflect deduction of any sales charge; results
would be lower if sales charge was deducted.
</TABLE>
<PAGE>
<TABLE>
Performance
Summary--
Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $9.80 $9.34 $0.005 -- - 4.64%
1995 9.34 9.19 0.053 $0.052 - 0.46
1996 9.19 9.71 0.185 0.611 +14.43
1/1/97--3/31/97 9.71 9.67 -- -- - 0.41
------ ------
Total $0.243 Total $0.663
Cumulative total return as of 3/31/97: +8.17%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not reflect deduction of any sales charge; results
would be lower if sales charge was deducted.
</TABLE>
<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>
8/5/94--12/31/94 $10.00 $9.37 $0.005 -- - 6.25%
1995 9.37 9.25 0.053 $0.093 + 0.31
1996 9.25 9.79 0.185 0.683 +15.34
1/1/97--3/31/97 9.79 9.77 -- -- - 0.20
------ ------
Total $0.243 Total $0.776
Cumulative total return as of 3/31/97: +8.25%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not include sales charge; results would be lower if
sales charge was included.
</TABLE>
PERFORMANCE DATA (concluded)
<PAGE>
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
3/31/97 12/31/96 3/31/96 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares $9.80 $9.81 $10.11 -1.21% (1) -0.10%
Class B Shares 9.68 9.72 10.00 -1.33(1) -0.41
Class C Shares 9.67 9.71 9.99 -1.33(1) -0.41
Class D Shares 9.77 9.79 10.08 -1.22(1) -0.20
Class A Shares--Total Return +5.89(2) -0.10
Class B Shares--Total Return +4.73 (3) -0.41
Class C Shares--Total Return +4.83(4) -0.41
Class D Shares--Total Return +5.63(5) -0.20
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
(1)Percent change includes reinvestment of $0.185 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.710 per share ordinary
income dividends and $0.185 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.601 per share ordinary
income dividends and $0.185 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.611 per share ordinary
income dividends and $0.185 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.683 per share ordinary
income dividends and $0.185 per share capital gains distributions.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/97 +5.89% +0.33%
Inception (10/21/94) through 3/31/97 +4.36 +2.08
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/97 +4.73% +0.85%
Inception (8/5/94) through 3/31/97 +2.23 +1.52
[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**
<PAGE>
Class C Shares*
Year Ended 3/31/97 +4.83% +3.86%
Inception (10/21/94) through 3/31/97 +3.27 +3.27
[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 3/31/97 +5.63% +0.08%
Inception (8/5/94) through 3/31/97 +3.03 +0.96
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Percent of
EUROPE Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Czech Broadcasting 7,500 Central European Media Enterprises
Republic Ltd. (Class A) $ 206,250 $ 245,625 0.2%
Total Investments in the Czech
Republic 206,250 245,625 0.2
<PAGE>
Denmark Textiles 13,718 Carli Grey International A/S 402,266 714,220 0.5
Total Investments in Denmark 402,266 714,220 0.5
Finland Computer Software 4,560 TT Tieto OY 298,105 381,609 0.3
Holding Company 11,416 Fiskars OY AB 590,868 936,625 0.7
17,600 Instrumentarium OY (Group A) 635,762 677,595 0.5
------------ ------------ ------
1,226,630 1,614,220 1.2
Household Products 7,244 Huhtamaki OY 325,534 356,688 0.2
Total Investments in Finland 1,850,269 2,352,517 1.7
France Apparel 640 Damart S.A. 524,338 576,051 0.4
Automobile Parts 5,600 Sylea S.A. 609,529 540,048 0.4
Broadcast--Media 6,400 M6 Metropole Television 524,506 652,630 0.5
Computer Software 2,157 Altran Technologies S.A. 561,773 795,850 0.6
Holding Company 2,482 Societe EuraFrance S.A. 751,104 1,173,736 0.9
Home Furnishings 160 Castorama Dubois
Investissements S.C.A. 24,182 25,374 0.0
Manufacturing 21,500 Sommer Allibert S.A. 639,257 679,614 0.5
Total Investments in France 3,634,689 4,443,303 3.3
Germany Auto & Truck 4,800 Koegel Fahrzeugwerke AG
(Preferred) 621,179 649,234 0.5
Machine Tools 1,663 Plettac AG 361,590 360,891 0.2
& Machinery 2,650 Walter AG 672,793 904,839 0.7
------------ ------------ ------
1,034,383 1,265,730 0.9
Machinery & 21,220 Kloeckner Werke AG 1,897,517 1,575,395 1.2
Engineering
Manufacturing 3,680 Escada AG (Preferred) 610,130 622,735 0.4
3,900 KSB AG (Preferred) 545,617 797,115 0.6
------------ ------------ ------
1,155,747 1,419,850 1.0
<PAGE>
Retail Specialty 18,000 Moebel Walther AG 770,212 957,619 0.7
Total Investments in Germany 5,479,038 5,867,828 4.3
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
EUROPE Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Greece Building & 7,990 Titan Cement Co. S.A. $ 302,811 $ 577,627 0.4%
Construction
Total Investments in Greece 302,811 577,627 0.4
Ireland Containers 68,000 Clondalkin Group PLC 667,110 638,183 0.5
Transportation 120,500 Irish Continental Group PLC 916,890 1,031,697 0.7
Total Investments in Ireland 1,584,000 1,669,880 1.2
Italy Diversified 890,000 Compagnie Industriali Riunite
S.p.A. (CIR) 996,497 634,567 0.5
Total Investments in Italy 996,497 634,567 0.5
Netherlands Electrical Equipment 19,022 Twentsche Kabel Holding NV 748,829 879,895 0.7
Electronic Components 28,000 Advanced Semiconductor Materials
International NV 402,648 351,872 0.3
Engineering & 20,806 Kondor Wessels Groep NV 780,063 1,001,358 0.7
Construction
Holding Company 20,000 Internatio-Muller NV 398,929 612,834 0.5
Instruments/Photo 10,000 Elsag Bailey Process Automation NV 160,600 160,000 0.1
-Optical
Printing & 12,000 Roto Smeets de Boer NV 563,281 567,914 0.4
Publishing
<PAGE>
Total Investments in the
Netherlands 3,054,350 3,573,873 2.7
Norway Computer Software 22,320 Merkantildata ASA 516,760 508,637 0.4
Newspaper/Publishing 27,744 Schibsted ASA 572,146 564,802 0.4
Total Investments in Norway 1,088,906 1,073,439 0.8
Poland Engineering & 131,800 Elektrim Towarzystwo Handlowe S.A. 462,537 1,157,645 0.9
Construction
Tire & Rubber 30,000 T.C. Debica S.A. 399,679 795,381 0.6
Total Investments in Poland 862,216 1,953,026 1.5
Portugal Retail Sales 25,200 Establecimentos Jeronimo Martins
& Filho S.A. 698,622 1,400,084 1.0
Total Investments in Portugal 698,622 1,400,084 1.0
Russia Cellular Telephones 25,600 Vimpel-Communications (ADR) (a) 767,821 819,200 0.6
Total Investments in Russia 767,821 819,200 0.6
Spain Automotive & 32,000 Estacionamientos Subterraneos,
Equipment S.A. (Ordinary) 614,689 635,912 0.5
Manufacturing 6,402 Azkoyen S.A. 459,300 954,166 0.7
Paper & Pulp 20,000 Miquel y Costas & Miquel, S.A. 543,369 799,148 0.6
Total Investments in Spain 1,617,358 2,389,226 1.8
Sweden Biotechnology 33,200 Biora AB 347,898 350,662 0.3
Engineering & 23,853 Svedala Industri AB 313,241 465,848 0.3
Construction
Forest Products/ 819,500 Rottneros Bruks AB Free 1,265,254 925,447 0.7
Paper & Packaging
Hotels 28,350 Scandic Hotels AB 514,574 516,009 0.4
<PAGE>
Investment 65,091 Bure Investment AB 555,881 847,483 0.6
Management
Special Services 32,000 Mandator AB (B Shares) 530,278 406,010 0.3
Total Investments in Sweden 3,527,126 3,511,459 2.6
Switzerland Advertising 3,200 Edipresse S.A. (Bearer) 679,120 737,091 0.5
Distribution 4,000 TEGE S.A. 330,008 400,835 0.3
Industrials 9,175 Oerlikon-Buehrle Holdings AG 989,278 924,204 0.7
Machine Tools & 4,100 Agie Charmilles Holdings
Machinery (Registered) 398,671 410,856 0.3
Machinery 1,701 Saurer AG (Registered) 745,372 814,397 0.6
Medical Supplies 297 Disetronic Holdings AG 552,200 607,641 0.4
Paper & Forest 24,800 Mercer International, Inc. 422,910 235,600 0.2
Products
Photography 2,694 Fotolabo S.A. 904,008 956,117 0.7
Retailing 1,560 Grands Magasins Jelmoli S.A. 918,430 897,787 0.7
Total Investments in Switzerland 5,939,997 5,984,528 4.4
Turkey Beverages 3,485,900 Erciyas Biracilik Ve Malt
Sanayii A.S. 566,377 321,023 0.2
Total Investments in Turkey 566,377 321,023 0.2
United Beverages 131,500 Matthew Clark PLC 1,188,994 699,343 0.5
Kingdom
Chemicals 390,000 Inspec Group PLC 1,844,704 1,207,214 0.9
Commercial Services 40,000 Serco Group PLC (Ordinary) 417,691 452,458 0.4
Computer Services 70,770 Misys PLC 705,945 1,456,535 1.1
Computers 158,600 Acorn Computer Group PLC 231,981 582,331 0.4
Diversified 284,200 Howden Group PLC 362,329 594,278 0.4
Employee Services 200,000 Corporate Services Group PLC 594,020 658,600 0.5
<PAGE>
Home Furnishings 220,000 Limelight Group PLC 654,727 278,917 0.2
Insurance 17,700 DONCASTERS PLC (ADR) (a) 323,542 342,938 0.3
Media/Publishing 82,000 International Business
Communications PLC (Ordinary) 298,340 432,042 0.3
Oil Services 40,000 Expro International Group PLC 330,488 319,421 0.2
Pharmaceuticals 43,300 Celltech Group PLC 429,955 420,631 0.3
121,800 Oxford Molecular Group PLC 638,122 816,213 0.6
------------ ------------ ------
1,068,077 1,236,844 0.9
Textiles 215,220 Dewhirst Group PLC 601,484 602,412 0.5
Total Investments in the
United Kingdom 8,622,322 8,863,333 6.6
Total Investments in Europe 41,200,915 46,394,758 34.3
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
LATIN Percent of
AMERICA Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Iron & Steel 36,000 Siderar S.A. (ADR) (a) $ 612,000 $ 1,054,271 0.8%
Retailing 24,889 Grimoldi S.A. 95,150 124,465 0.1
Total Investments in Argentina 707,150 1,178,736 0.9
Brazil Textiles 2,054,000 Companhia de Tecidos Norte de
Minas S.A. (Preferred) 652,560 822,376 0.6
Utilities-- 879,478 Centrais Eletricas da Santa
Electric Catarina S.A. (CELESC) 'B'
(Preferred) 780,981 1,004,880 0.7
Total Investments in Brazil 1,433,541 1,827,256 1.3
Colombia Banking 41,300 Banco Ganadero S.A. (Class A)
(ADR) (a) 811,698 1,047,988 0.8
<PAGE>
Total Investments in Colombia 811,698 1,047,988 0.8
Mexico Banking 350,850 Grupo Financiero Banorte, S.A.
de C.V. 387,614 363,772 0.3
Building Materials 47,890 Internacional de Ceramica, S.A
de C.V. (ADR) (a) 355,919 323,258 0.2
10,820 International de Ceramica, S.A
de C.V. (Rights) 0 0 0.0
------------ ------------ ------
355,919 323,258 0.2
Engineering & 108,000 Grupo Profesional Planeacion y
Construction Proyectos, S.A. de C.V. (Class B) 480,948 476,791 0.3
Total Investments in Mexico 1,224,481 1,163,821 0.8
Peru Foods 250,947 Consorcio Alimentos Fabril
Pacifico S.A. 268,537 379,074 0.3
Total Investments in Peru 268,537 379,074 0.3
Total Investments in Latin
America 4,445,407 5,596,875 4.1
MIDDLE EAST/
AFRICA
Zimbabwe Beverages 767,604 Delta Corporation Ltd. 412,821 1,177,516 0.9
Total Investments in Zimbabwe 412,821 1,177,516 0.9
Total Investments in the Middle
East/Africa 412,821 1,177,516 0.9
NORTH
AMERICA
Canada Leisure 42,384 Four Seasons Hotels Ltd. 495,789 988,633 0.7
Mining 32,925 Cambior Inc. 457,703 444,488 0.3
Natural Resources 20,000 Total Petroleum of North
America Ltd. 188,500 210,000 0.2
Total Investments in Canada 1,141,992 1,643,121 1.2
<PAGE>
United Aerospace 110,000 UNC, Inc. 637,625 1,567,500 1.2
States
Apparel 20,800 Farah, Inc. 174,581 208,000 0.2
70,100 Norton McNaughton, Inc. 850,711 411,838 0.3
------------ ------------ ------
1,025,292 619,838 0.5
Automobile Parts 21,500 Walbro Corp. 403,662 378,938 0.3
Banking & Finance 6,750 Charter One Financial, Inc. 117,321 296,156 0.2
16,000 Civic Bancorp 195,750 180,000 0.1
------------ ------------ ------
313,071 476,156 0.3
Biotechnology 24,000 COR Therapeutics Inc. 257,250 225,000 0.2
8,000 Gilead Sciences, Inc. 237,841 183,000 0.1
12,400 Ostex International Inc. 133,600 46,500 0.0
11,500 Scios, Inc. 56,963 78,344 0.1
------------ ------------ ------
685,654 532,844 0.4
Building & Building 22,000 Giant Cement Holding, Inc. 293,938 341,000 0.3
Materials 22,300 Ryland Group, Inc. 303,251 262,025 0.2
------------ ------------ ------
597,189 603,025 0.5
Building Materials 19,100 Oakwood Homes Corporation 425,832 336,638 0.2
Computer Software 12,600 Hyperion Software Corp. 157,188 201,600 0.1
72,500 Metromail Corporation 1,297,337 1,241,563 0.9
17,900 Software Spectrum Inc. 372,300 281,925 0.2
7,163 Sterling Commerce, Inc. 101,474 207,727 0.2
29,400 Structural Dynamics Research
Corporation 588,410 602,700 0.4
117,300 VMARK Software, Inc. 1,115,086 762,450 0.6
------------ ------------ ------
3,631,795 3,297,965 2.4
Computers & 2,550 Compuware Corporation 87,712 160,013 0.1
Computer Services 14,100 The Peak Technologies Group Inc. 172,244 142,763 0.1
12,050 Storage Technology Corporation 398,422 472,963 0.3
74,000 Sybase, Inc. 1,283,569 1,017,500 0.8
------------ ------------ ------
1,941,947 1,793,239 1.3
Construction & 8,200 Toll Brothers, Inc. 158,483 149,650 0.1
Residental
<PAGE>
Data Processing 40,100 Platinum Technology Inc. 558,817 466,163 0.3
8,100 Symantec Corp. 81,380 113,400 0.1
------------ ------------ ------
640,197 579,563 0.4
Electronics 12,000 Allen Group, Inc. 192,878 210,000 0.2
45,900 Alpha Industries, Inc. 346,984 281,138 0.2
15,600 BI, Inc. 169,966 118,950 0.1
4,000 CHS Electronics Inc. 72,454 79,000 0.1
119,800 C.P. Clare Corp. 1,038,501 1,198,000 0.9
20,100 DII Group, Inc. 429,754 492,450 0.4
6,600 Marshall Industries 195,530 207,900 0.2
28,800 Nu Horizons Electronics Corp. 261,957 219,600 0.2
6,900 Triumph Group, Inc. 149,340 173,363 0.1
6,100 Wyle Electronics 221,793 205,112 0.2
------------ ------------ ------
3,079,157 3,185,513 2.6
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Environmental 37,740 BHA Group Inc. (Class A) $ 532,342 $ 669,885 0.5%
States Control 79,200 Envirosource Inc. 307,178 153,450 0.1
(concluded) ------------ ------------ ------
839,520 823,335 0.6
Gaming 8,000 WMS Industries, Inc. 161,954 150,000 0.1
Healthcare-- 49,000 Magellan Health Services, Inc. 884,348 1,206,625 0.9
Products/Services 53,800 Ramsay Health Care, Inc. 330,777 201,750 0.1
------------ ------------ ------
1,215,125 1,408,375 1.0
Insurance 35,000 Gryphon Holdings, Inc. 494,289 498,750 0.4
56,600 PXRE Corp. 1,296,450 1,450,375 1.1
14,000 Security-Connecticut Corp. 323,965 631,750 0.5
------------ ------------ ------
2,114,704 2,580,875 2.0
Iron & Steel 8,200 Gibraltar Steel Corp. 147,600 158,875 0.1
28,800 Quanex Corporation 631,528 723,600 0.5
------------ ------------ ------
779,128 882,475 0.6
<PAGE>
Machinery 12,000 AGCO Corporation 266,610 331,500 0.2
9,000 Stewart & Stevenson Services, Inc. 235,488 180,000 0.1
------------ ------------ ------
502,098 511,500 0.3
Medical 4,500 Analogic Corporation 77,063 135,000 0.1
17,600 Biomatrix, Inc. 263,972 228,800 0.2
9,000 Sierra Health Services Inc. 294,063 228,375 0.2
4,000 Sofamor Danek Group, Inc. 103,503 144,500 0.1
------------ ------------ ------
738,601 736,675 0.6
Medical Supplies 57,200 Isolyser Company, Inc. 351,189 271,700 0.2
Metal Products-- 7,400 Applied Industrial Technologies,
Distribution Inc. 212,533 259,000 0.2
Metals 15,800 Castle (A.M) & Company 291,876 274,525 0.2
6,500 Commonwealth Aluminum Corp. 109,901 111,312 0.1
29,300 Shiloh Industries, Inc. 395,757 410,200 0.3
------------ ------------ ------
797,534 796,037 0.6
Natural Resources 20,300 Brown (Tom), Inc. 236,050 373,012 0.3
11,100 Newpark Resources Inc. 340,431 485,625 0.4
25,000 Plains Resources, Inc. 156,250 331,250 0.2
55,000 TransTexas Gas Corp. 605,000 728,750 0.5
39,474 Zemex Corporation 344,674 266,449 0.2
------------ ------------ ------
1,682,405 2,185,086 1.6
Office--Related 23,000 Wang Laboratories, Inc. 501,637 408,250 0.3
Oil--Domestic 11,100 Titan Exploration, Inc. 116,187 92,962 0.1
Pharmaceuticals 48,300 NeoRx Corp. 324,963 229,425 0.2
Restaurants 26,500 Au Bon Pain Company, Inc.
(Class A) 172,691 165,625 0.1
12,160 Shoney's, Inc. 187,391 59,280 0.0
67,500 TPI Enterprises, Inc. 7,815 8,100 0.0
------------ ------------ ------
367,897 233,005 0.1
Retailing 65,500 Baker (J.), Inc. 872,554 581,312 0.4
102,300 CML Group, Inc. 255,765 191,812 0.1
25,000 Catherines Stores Corp. 202,020 121,875 0.1
34,500 Chico's Fashions Inc. 248,069 99,187 0.1
20,300 Department 56, Inc. 460,150 352,712 0.3
------------ ------------ ------
2,038,558 1,346,898 1.0
<PAGE>
Savings & Loan 8,300 Haven Bancorp, Inc. 235,863 265,600 0.2
Associations
Steel 17,700 Citation Corporation 238,490 254,437 0.2
Technology 99,000 Applied Digital Access, Inc. 678,257 470,250 0.3
10,300 Rofin-Sinar Technologies, Inc. 97,850 145,487 0.1
22,100 VISX, Inc. 562,135 486,200 0.4
------------ ------------ ------
1,338,242 1,101,937 0.8
Telecommunication 36,900 Comdial Corporation 227,438 226,012 0.2
Equipment 64,200 Network Equipment Technologies, Inc. 1,106,111 866,700 0.6
------------ ------------ ------
1,333,549 1,092,712 0.8
Telecommunications 5,300 Brite Voice Systems, Inc. 70,629 55,650 0.0
Transportation 10,300 Air Express International
Corporation 278,291 325,737 0.2
400 Landair Services, Inc. 3,854 4,400 0.0
------------ ------------ ------
282,145 330,137 0.2
Transportation 22,043 Aramex International Limited 165,901 195,632 0.1
Services
Total Investments in the
United States 29,948,756 29,732,572 22.0
Total Investments in North
America 31,090,748 31,375,693 23.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
PACIFIC Shares Held/ Percent of
BASIN Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Australia Entertainment 1,188,000 Burswood Property Trust $ 1,567,077 $ 1,294,139 1.0%
Publishing 283,000 West Australian Newspaper
Holdings Ltd. 1,034,360 1,208,740 0.9
Total Investments in Australia 2,601,437 2,502,879 1.9
<PAGE>
Hong Kong Banking 1,432,333 JCG Holdings, Ltd. 1,085,879 1,127,603 0.8
Financial US$ 420,000 Goldlion Capital Corp., 4.875%
Services due 2/01/1999 318,914 567,000 0.4
Foods/Food 6,892,000 Tingyi (Cayman Islands)
Processing Holdings Co. 1,575,707 1,503,192 1.1
Packaging 3,772,600 Sinocan Holdings Ltd. 1,254,878 1,424,128 1.1
Total Investments in Hong Kong 4,235,378 4,621,923 3.4
Indonesia Banking-- 303,000 PT Bank Bali (Foreign) 634,023 729,094 0.6
International
Consumer--Goods 2,830,000 PT Wicaksana Overseas
International 3,561,009 3,684,896 2.7
Textiles & 2,354,000 PT Great River Industries 766,098 1,520,292 1.1
Apparel
Total Investments in Indonesia 4,961,130 5,934,282 4.4
Japan Automobile Parts 30,000 Exedy Corporation 511,228 315,917 0.2
58,000 Murakami Corporation 1,148,025 530,903 0.4
50,000 Showa Corporation 502,169 368,975 0.3
85,000 Yamakawa Industrial Co. 1,040,181 351,154 0.3
------------ ------------ ------
3,201,603 1,566,949 1.2
Beverages 79,000 Hokkaido Coca-Cola Bottling
Co., Ltd. 1,298,058 857,513 0.6
74,000 Sanyo Coca-Cola Bottling
Co., Ltd. 1,118,168 899,149 0.7
------------ ------------ ------
2,416,226 1,756,662 1.3
Chemicals 50,000 Canon Chemicals, Inc. 934,042 886,999 0.7
Computer Services 51,700 TKC Corporation 1,374,367 963,224 0.7
Construction 89,600 Japan Foundation Engineering
Co., Ltd. 1,735,016 870,960 0.6
88,000 Tsuchiya Home Co. 1,737,127 819,765 0.6
157,000 Yondenko Corp. 1,518,456 937,294 0.7
------------ ------------ ------
4,990,599 2,628,019 1.9
<PAGE>
Consumer 59,000 Roland Corporation 1,429,975 1,032,321 0.8
Electricals
Electrical Equipment 26,000 Shinmei Electric Co. 1,340,491 406,480 0.3
48,000 Sukegawa Electric Co. 630,495 202,187 0.1
------------ ------------ ------
1,970,986 608,667 0.4
Electronic 35,000 Chiyoda Integre Co., Ltd. 220,393 175,780 0.1
Components
Foods/Food 43,000 Ariake Japan Co., Ltd. 1,525,975 1,306,197 1.0
Processing
Health Services 25,000 Kanto Biomedical Laboratory Co. 528,125 283,516 0.2
26,000 SRL Inc. 557,018 360,146 0.3
------------ ------------ ------
1,085,143 643,662 0.5
Industrials 14,520 Nitto Kohki Company Ltd. 489,424 399,903 0.3
31,000 Roki Techno Co., Ltd. 868,533 411,827 0.3
------------ ------------ ------
1,357,957 811,730 0.6
Iron & Steel 218,000 Nippon Chutesukan K.K. 1,367,147 715,188 0.5
Machinery 28,000 Giken Seisakusho Co. Inc. 683,834 358,364 0.3
27,000 Miura Co., Ltd. 449,645 323,694 0.2
------------ ------------ ------
1,133,479 682,058 0.5
Metal Fabrication 124,000 Toyo Kohan Co., Ltd. 1,057,406 818,631 0.6
Packaging 30,000 Chuo Kagaku Co. Ltd. 1,206,134 417,983 0.3
Pollution Control 168,000 Organo Corporation 1,844,463 1,013,852 0.8
Real Estate 53,000 Keihanshin Real Estate Co. Ltd. 525,507 296,233 0.2
56,000 TOC Co., Ltd. 596,958 544,350 0.4
------------ ------------ ------
1,122,465 840,583 0.6
Restaurants 47,000 Aim Services Co., Ltd. 1,405,610 654,840 0.5
49,500 Mos Food Services, Inc. 1,446,914 681,652 0.5
83,000 Ohsho Food Service Corp. 2,244,318 1,183,313 0.9
------------ ------------ ------
5,096,842 2,519,805 1.9
<PAGE>
Retail Specialty 66,000 ADO Electric Industrial Co., Ltd. 1,956,905 1,122,722 0.8
60,000 Arcland Sakamoto Co., Ltd. 964,197 583,232 0.4
21,000 Daika Corporation 262,044 106,318 0.1
48,000 Home Wide Corporation 847,706 311,057 0.2
30,000 Nitori Co. 906,612 298,906 0.2
------------ ------------ ------
4,937,464 2,422,235 1.7
Retail Stores 64,000 Sotetsu Rosen Co., Ltd. 601,871 404,374 0.3
Services 66,000 Ichinen Co., Ltd. 1,663,714 791,252 0.6
Trading 34,100 Japan CBM Corp. 1,200,936 939,166 0.7
Trucking 108,000 Nippon Konpo Unyu Soko Co. 1,045,185 612,394 0.5
70,000 Tonami Transportation Co., Ltd. 548,070 283,516 0.2
------------ ------------ ------
1,593,255 895,910 0.7
Total Investments in Japan 43,332,442 24,841,247 18.4
Malaysia Advertising 221,000 Seni Jaya Corporation BHD 708,918 1,070,650 0.8
Chemicals 109,000 Chemical Company of Malaysia BHD 340,194 352,039 0.3
Consumer Products 24,000 Amway (Malaysia) Holdings BHD 145,366 156,964 0.1
& Services
Engineering & 378,000 Asas Dunia BHD 1,355,969 1,472,628 1.1
Construction
Newspaper/ 143,000 New Straits Times Press BHD 602,724 877,513 0.6
Publishing
Total Investments in Malaysia 3,153,171 3,929,794 2.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
PACIFIC BASIN Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
New Zealand Agriculture 1,090,500 Wrightson Ltd. $ 808,404 $ 635,993 0.5%
Chemicals 146,000 Fernz Corporation Ltd. 439,021 496,702 0.3
Real Estate 135,000 Kiwi Income Property Trust 94,514 103,104 0.1
27,000 Kiwi Income Property Trust 'B' 11,421 13,872 0.0
------------ ------------ ------
105,935 116,976 0.1
<PAGE>
Textiles 106,650 Lane Walker Rudkin Industries, Ltd. 121,891 118,475 0.1
Total Investments in New Zealand 1,475,251 1,368,146 1.0
Philippines Banking 26,160 Security Bank Corporation 24,933 51,645 0.1
Financial Services 38,440 Far East Bank & Trust Company 83,473 170,747 0.1
Total Investments in the
Philippines 108,406 222,392 0.2
South Korea Manufacturing 51,700 Han Wha Corporation 724,240 631,053 0.5
Total Investments in South Korea 724,240 631,053 0.5
Thailand Transportation 62,000 Thoresen Thai Agency PLC 'Express'
(Warrants) (d) 0 55 0.0
322,800 Thoresen Thai Agency PLC 'Foreign' 783,253 189,699 0.1
------------ ------------ ------
783,253 189,754 0.1
Total Investments in Thailand 783,253 189,754 0.1
Total Investments in the
Pacific Basin 61,374,708 44,241,470 32.8
SOUTHEAST
ASIA
India Hotels 59,400 EIH Ltd. (GDR) (b) 576,350 1,098,900 0.8
Recreation & 250,000 Su-Raj Diamonds Ltd. 346,583 172,690 0.1
Consumer Goods
Total Investments in India 922,933 1,271,590 0.9
Total Investments in Southeast Asia 922,933 1,271,590 0.9
SHORT-TERM
SECURITIES Face Amount Issue
<PAGE>
Commercial US$ 3,523,000 Associates Corp. of North America,
Paper* 6.75% due 4/01/1997 3,523,000 3,523,000 2.6
Total Investments in Commercial
Paper 3,523,000 3,523,000 2.6
US Government 200,000 United States Treasury Bills, 5.118%
& Agency due 4/24/1997 (c) 199,362 199,362 0.2
Obligations*
Total Investments in US Government
& Agency Obligations 199,362 199,362 0.2
Total Investments in Short-Term
Securities 3,722,362 3,722,362 2.8
<CAPTION>
OPTIONS Nominal Value Covered by Premiums
PURCHASED Options Purchased Paid
Currency Put Options 780,000 German Deutschemark, expiring
Purchased April 1997 at DM 1.60 5,187 35,256 0.0
4,000,000 Japanese Yen, expiring May 1997
at YEN 128 38,200 6,400 0.0
Total Investments in Options
Purchased 43,387 41,656 0.0
Total Investments $143,213,281 133,821,920 99.0
============
Variation Margin on Stock Index Futures Contracts*** 241,200 0.2
Unrealized Depreciation on Forward Foreign Exchange Contracts** (16,032) 0.0
Other Assets Less Liabilities 1,055,466 0.8
------------ ------
Net Assets $135,102,554 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $2,928,205 and
298,845 shares outstanding $ 9.80
============
Class B--Based on net assets of $108,208,172 and
11,177,465 shares outstanding $ 9.68
============
Class C--Based on net assets of $5,240,714 and
542,162 shares outstanding $ 9.67
============
Class D--Based on net assets of $18,725,463 and
1,916,290 shares outstanding $ 9.77
============
<PAGE>
<FN>
*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.
**Forward foreign exchange contracts as of March 31, 1997 were as
follows:
Unrealized
Foreign Currency Expiration Appreciation
Purchased Date (Depreciation)
DM 1,248,000 April 1997 $ (14,188)
Total (US$ Commitment--$764,788) (14,188)
------------
Foreign
Currency Sold
Nlg 1,650,180 May 1997 (9,242)
NZ$ 1,554,000 May 1997 (668)
YEN 1,035,317,260 May 1997 8,066
Total (US$ Commitment--$10,417,441) (1,844)
------------
Total Unrealized Depreciation--Net on
Forward Foreign Exchange Contracts $ (16,032)
============
***Stock index futures contracts sold as of March 31, 1997 were as
follows:
Number of Expiration
Contracts Issue Exchange Date Value
12 S&P Index CME June 1997 $4,548,000
Total Stock Index Futures Contracts Sold
(Total Contract Price--$4,809,300) $4,548,000
==========
(a)American Depositary Receipts (ADR).
(b)Global Depositary Receipts (GDR).
(c)Securities held as collateral in connection with open futures
contracts.
(d)Warrants entitle the Fund to purchase a predetermined number of
shares of stock/face amount of bonds at a predetermined price
until the expiration date.
</TABLE>
<PAGE>
EQUITY PORTFOLIO CHANGES
For the Quarter Ended March 31, 1997
Additions
*Accton Technology Corporation
Advanced Semiconductor Materials
International NV
Agie Charmilles Holding AG (Registered)
*AmerUS Life Holdings, Inc.
Applied Digital Access, Inc.
Applied Industrial Technologies, Inc.
Aramex International Limited
Biora AB
*British-Borneo Petroleum Syndicate PLC
*Business Objects S.A. (ADR)
Castorama Dubois Investissement S.C.A.
Citation Corporation
Civic BanCorp.
Clondalkin Group PLC
DONCASTERS PLC (ADR)
Damart S.A.
*Det Sondenfjelds--Norske
Jampskibsselskab
Edipresse S.A. (Bearer)
*Empressa Nacional de Celulosas S.A.
Escada AG (Preferred)
Estacionamientos Subterraneous, S.A.
(Ordinary)
Expro International Group PLC
Gilead Sciences, Inc.
Han Wha Corporation
Huhtamaki OY
Instrumentarium OY (Group A)
International de Ceramica, S.A. de C.V.
(Rights)
Isolyser Company, Inc.
Koegel Fahrzeugwerke AG (Preferred)
M6 Metropole Television
Mandator AB (B Shares)
*Merix Corporation
Merkantildata ASA
Oakwood Homes Corporation
Plettac AG
*Quick Response Services, Inc.
Roto Smeets de Boer NV
Scandic Hotels AB
Schibsted ASA
*Sixt AG
*Sydbank A/S
Toll Brothers, Inc.
Vimpel-Communications (ADR)
WMS Industries, Inc.
*Yurie Systems, Inc.
<PAGE>
Deletions
ASM Lithography Holding NV
*Accton Technology Corporation
America Group Ltd.
*AmerUS Life Holdings, Inc.
Bank of the Ryukyus, Ltd.
Bearings, Inc.
*British-Borneo Petroleum Syndicate PLC
*Business Objects S.A. (ADR)
Cardif S.A.
Cincinnati Milacron, Inc.
*Det Sondenfjelds--Norske
Jampskibsselskab
Elandsrand Gold Mining Company Ltd.
*Empressa Nacional de Celulosas S.A.
Eregli Demir Ve Celik Fabrikalari T.A.S.
Establecimentos Jeronimo Martins &
Filho S.A. (New)
Falck A/S
Flextech PLC
GEA AG (Preferred)
Garphyttan Industrier AB
Getinge Industrier AB (B Shares)
Greater New York Savings Bank
Grossman's Inc.
Havas Advertising S.A.
Healthdyne Technologies, Inc.
Jurys Hotel Group PLC
Kalmar Industries AB
Levitz Furniture Inc.
Low & Bonar PLC (Ordinary)
*Merix Corporation
Midland Financial Group, Inc.
Olympic Steel, Inc.
Pharmaceutical Product Development, Inc.
*Quick Response Services, Inc.
Sistem Televisyen Malaysia BHD (Class A)
(New)
*Sixt AG
Smith (A.O.) Corp.
Sterling Software, Inc.
Stratus Computer, Inc.
Sun International (South Africa) Ltd.
*Sydbank A/S
TALX Corp.
Voice Control Systems, Inc.
*Yurie Systems, Inc.
[FN]
*Added and deleted in the same quarter.
PORTFOLIO INFORMATION
Worldwide
Investments
As of 3/31/1997
Country Percent of
Ten Largest Equity Holdings of Origin Net Assets
PT Wicaksana Overseas International Indonesia 2.7%
Kloeckner Werke AG Germany 1.2
UNC, Inc. United States 1.2
PT Great River Industries Indonesia 1.1
Tingyi (Cayman Islands) Holdings, Co. Hong Kong 1.1
Asas Dunia BHD Malaysia 1.1
Misys PLC United Kingdom 1.1
PXRE Corp. United States 1.1
Sinocan Holdings Ltd. Hong Kong 1.1
Establecimentos Jeronimo Martins
& Filho S.A. Portugal 1.0
Percent of
Ten Largest Industries Net Assets
<PAGE>
Computer Software 3.7%
Engineering & Construction 3.3
Beverages 2.9
Consumer--Goods 2.7
Manufacturing 2.7
Holding Company 2.6
Retail Specialty 2.4
Insurance 2.3
Chemicals 2.2
Banking 2.1
