UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07540
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Global High Income Dollar Fund Inc.
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(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
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(Address of principal executive offices) (Zip code)
Mark F. Kemper, Esq.
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant's telephone number, including area code: 212-882 5000
Date of fiscal year end: October 31
Date of reporting period: April 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
--------------------------------
[LOGO OF UBS] UBS Global Asset
Management
GLOBAL HIGH INCOME
DOLLAR FUND INC.
SEMIANNUAL REPORT
APRIL 30, 2005
GLOBAL HIGH INCOME DOLLAR FUND INC.
June 15, 2005
DEAR SHAREHOLDER,
We present you with the semiannual report for Global High Income Dollar Fund
Inc. (the "Fund") for the six months ended April30, 2005.
PERFORMANCE
Over the six-month period ended April 30, 2005, the Fund's net asset value
return was 5.45%, compared with the 5.21% return of its peers, as measured by
the Lipper Emerging Markets Debt Funds peer group median and the 3.51% return of
the J.P. Morgan Emerging Markets Bond Index--Global (the "Index"). On a market
price basis, the Fund returned 5.52% over the six-month period, compared with
the median's return of 2.09% over the same time frame. After the close of the
period, the Fund's managed distribution policy was adjusted and is described
further on page 5. (For more on the Fund's performance, please refer to
"Performance At A Glance" on page 7.) The Fund did not use leverage during the
reporting period, as did some of its peers. Leverage tends to magnify returns on
both the upside and downside, and the degree of leverage used can create wider
dispersions of returns with in the Fund's peer group.
GLOBAL HIGH INCOME DOLLAR FUND INC.
INVESTMENT GOALS:
Primarily, high level of current income; secondarily, capital appreciation.
PORTFOLIO MANAGEMENT:
Portfolio management team, including Uwe Schillhorn UBS
Global Asset Management (US) Inc.
COMMENCEMENT:
October 8, 1993
NYSE SYMBOL:
GHI
DIVIDEND PAYMENTS:
Monthly
AN INTERVIEW WITH PORTFOLIO MANAGER UWE SCHILLHORN
Q: HOW DID EMERGING MARKETS DEBT PERFORM OVER THE PERIOD?
A: Emerging markets debt performed moderately well, with the Index returning
3.51% over the six-month period. In comparison, government bonds in
developed markets returned 3.40%, as measured by the Citigroup World
Government Bond Index (WGBI) in US dollars on a currency-hedged basis.
Emerging markets debt in general was supported by relatively low US Treasury
yields and generally strong growth in emerging markets economies.
While growth rates remained solid as the period progressed, emerging markets
debt spreads (the difference in yield between debt obligations of different
categories) widened in the second half of the period, and prices fell. As US
interest rates continued to rise and the potential for larger rate hikes in
the
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1
GLOBAL HIGH INCOME DOLLAR FUND INC.
future began to loom, investors became more risk-averse, causing demand for
emerging markets debt to fall sharply.
Q: HOW WOULD YOU CHARACTERIZE THE EMERGING MARKETS ECONOMIES FROM A REGIONAL
PERSPECTIVE?
A: Considering growth more broadly, the major economies of Latin America
generally expanded in concert, a situation that has not taken place in
decades, as most economies there are seeing the results of strong economic
policies. European Economic Union accession for the economies in Eastern
Europe, an increasingly important region for emerging markets debt, also
propped up performance for the entire asset class. Moreover, the growth rate
for many emerging markets countries outpaced growth rates in many developed
countries.
Q: HOW DID YOU RESPOND TO THE VOLATILITY IN EMERGING MARKETS DEBT?
A: Early in the period, we increased the Fund's market exposure. This enhanced
results, when emerging market spreads narrowed and prices rose in the first
half of the period. We then moved to reduce our market exposure as the
reporting period moved on and adopted a more cautious approach for the
portfolio. This proved to be beneficial, as the market gave back much of
its earlier gains in the second half of the reporting period.
Q: WHAT WERE SOME OF THE PORTFOLIO POSITIONING STRATEGIES YOU EMPLOYED OVER THE
PERIOD?
A: Throughout the period, the Fund maintained an underweight exposure in Turkey
and an overweight in Argentina. ("Overweight" or "underweight" refers to how
much of a particular sector or country the Fund holds versus the composition
of its benchmark Index.) We believed that Turkey's debt was overvalued,
based on expectations for its membership in the European Economic Union. We
held a positive view on Argentina, as it has benefited from an ongoing
economic recovery, good fiscal performance and the near completion of its
debt restructuring plan.
During the period, we also sought investment opportunities in non-US
dollar-denominated local market securities. Given the tight spread
environment in the first half of the period, the portfolio had roughly a 9%
position in local market securities to take advantage of the higher yield
potential they offered. As the period progressed, we continued to identify
value in select local markets where fundamentals were favorable and interest
rates were relatively high. Consistent with our overall strategy, however,
we reduced the portfolio's exposure to these investments toward the end of
the period, and then increased them again as the period closed.
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2
GLOBAL HIGH INCOME DOLLAR FUND INC.
Q: HOW DID YOU VIEW THE DEBT MARKET IN BRAZIL?
A: Brazil's economic growth has moved ahead strongly despite tighter monetary
policy, making its debt market attractive. In the first half of the period,
we had an overweight exposure in Brazilian debt as the country continued to
experience strong economic growth. This enhanced results as spreads in
Brazil narrowed. Later in the period, we sold some of our Brazilian
securities and moved to an underweight in the country, using the proceeds of
those sales to increase our Argentinian holdings.
Q: HOW WERE YOU POSITIONED IN OTHER EMERGING MARKETS COUNTRIES?
A: Elsewhere, we had overweights in Russia and Qatar and found Argentinian
Bodens, debt created as part of the public debt restructuring efforts in the
wake of their currency crisis, to be particularly attractive. Conversely, we
found less compelling values in Venezuela and South Africa, and held
underweight positions in those countries. As Turkey moved farther along in
its efforts to join the European Union, our view on Turkish bonds evolved
and we reduced our holdings there, as our research indicated that the
benefits of this potential historic event were already accounted for in the
securities' prices.
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3
GLOBAL HIGH INCOME DOLLAR FUND INC.
We thank you for your continued support and welcome any comments or questions
you may have. For additional information on the UBS family of funds,* please
contact your financial advisor or visit us at www.ubs.com/globalam-us.
Sincerely,
/s/ W. Douglas Beck
W. Douglas Beck, CFA
President
Global High Income Dollar Fund Inc.
Executive Director
UBS Global Asset Management (US) Inc.
/s/ Uwe Schillhorn
Uwe Schillhorn, CFA
Portfolio Management Team Member
Global High Income Dollar Fund Inc.
Executive Director
UBS Global Asset Management (US) Inc.
This letter is intended to assist shareholders in understanding how the Fund
performed during the six months ended April 30, 2005. The views and opinions in
the letter were current as of June 15, 2005. They are not guarantees of
performance or investment results and should not be taken as investment advice.
Investment decisions reflect a variety of factors, and we reserve the right to
change our views about individual securities, sectors and markets at any time.
As a result, the views expressed should not be relied upon as a forecast of the
Fund's future investment intent.
We encourage you to consult your financial advisor regarding your personal
investment program.
* Mutual funds are sold by prospectus only. You should read it carefully and
consider a fund's investment objectives, risks, charges, expenses and other
important information contained in the prospectus before investing.
Prospectuses for most of our funds can be obtained from your financial
advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site
at www.ubs.com/globalam-us.
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4
GLOBAL HIGH INCOME DOLLAR FUND INC.
INFORMATION REGARDING THE CHANGE TO THE FUND'S MANAGED DISTRIBUTION POLICY:
The Fund adopted a managed distribution policy in December 1999. Pursuant to the
policy as in effect from December 1999 through early May 2005, the Fund made
regular monthly distributions at an annualized rate equal to 11% of the Fund's
net asset value, as determined as of the last day on which the New York Stock
Exchange is open for trading during the first week of that month. The annualized
rate for distributions pursuant to the policy was reduced from 11% to 9%
effective beginning with the June 2005 monthly distribution. The Fund's Board
receives recommendations from UBS Global Asset Management (US) Inc.
periodically, and no less frequently than annually will reassess the annualized
percentage of net assets at which the Fund's monthly distributions will be made.
The Fund's Board may change or terminate the managed distribution policy at any
time; any such change or termination may have an adverse effect on the market
price for the Fund's shares.
To the extent that the Fund's taxable income in any fiscal year exceeds the
aggregate amount distributed based on a fixed percentage of its net asset value,
the Fund would make an additional distribution in the amount of that excess near
the end of the fiscal year. To the extent that the aggregate amount distributed
by the Fund based on a fixed percentage of its net asset value exceeds its
current and accumulated earnings and profits, the amount of that excess would
constitute a return of capital or net realized capital gains for tax purposes.
The actual sources of the Fund's monthly distributions may be net investment
income, net realized capital gains, return of capital or a combination of the
foregoing and may be subject to retroactive recharacterization at the end of the
Fund's fiscal year based on tax regulations. The actual amounts attributable to
each of these sources will be reported to shareholders in January of each year
on Form 1099-DIV.
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5
(This page has been left blank intentionally)
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6
GLOBAL HIGH INCOME DOLLAR FUND INC.
PERFORMANCE AT A GLANCE (UNAUDITED)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/05
NET ASSET VALUE RETURNS* 6 months 1 year 5 years 10 years
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Global High Income Dollar Fund Inc. 5.45% 19.21% 14.15% 14.11%
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Lipper Emerging Markets Debt Funds median** 5.21% 15.95% 15.65% 15.32%
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MARKET PRICE RETURNS*
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Global High Income Dollar Fund Inc. 5.52% 25.05% 21.15% 17.55%
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Lipper Emerging Markets Debt Funds median** 2.09% 19.88% 19.23% 14.97%
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* Past performance does not predict future performance. The return and value
of an investment will fluctuate, so that an investor's shares, when sold,
may be worth more or less than their original cost. NAV return assumes,
for illustration only, that dividends/distributions were reinvested at the
net asset value on the payable dates.
Market price returns assume that dividends/distributions were reinvested
under the Dividend Reinvestment Plan. NAV and market price returns for
periods of less than one year have not been annualized. Returns do not
reflect taxes paid on dividends/distributions or brokerage commissions and
taxes paid on the sale of shares.
** Lipper peer group data calculated by Lipper Inc.; used with permission. The
Lipper median is the return of the fund that places in the middle of the
Lipper Emerging Markets Debt Funds peer group.
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7
GLOBAL HIGH INCOME DOLLAR FUND INC.
PORTFOLIO STATISTICS (UNAUDITED)
CHARACTERISTICS* 4/30/05 10/31/04 4/30/04
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Net Asset Value $15.15 $16.43 $15.34
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Market Price $17.31 $18.31 $16.26
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12-Month Dividends/Distributions $3.0134 $1.7443 $1.7667
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Dividend/Distribution at Period-End $0.1391 $0.1488 $0.1486
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Net Assets (mm) $294.5 $319.4 $298.2
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CURRENCY EXPOSURE** 4/30/05 10/31/04 4/30/04
--------------------------------------------------------------------------------------------------------------------
U.S. Dollar Denominated 86.7% 98.3% 95.8%
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Foreign Denominated 13.3 1.7 4.2
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TOTAL 100.0% 100.0% 100.0%
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TOP 10 COUNTRIES (EXCLUDING U.S.)** 4/30/05 10/31/04 4/30/04
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Brazil 16.9% Brazil 22.4% Brazil 21.4%
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Russia 16.2 Russia 13.8 Russia 19.4
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Mexico 10.2 Mexico 10.1 Mexico 12.6
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Argentina 10.1 Argentina 8.4 Argentina 4.9
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Qatar 4.6 Malaysia 4.4 Colombia 4.9
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Turkey 4.5 Turkey 4.2 Venezuela 3.8
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Germany 3.7 Philippines 3.6 Bulgaria 3.2
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Philippines 3.5 Colombia 3.5 Malaysia 3.2
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Colombia 3.5 Germany 3.1 Poland 2.4
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Malaysia 2.9 Ecuador 3.1 South Africa 2.3
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TOTAL 76.1% 76.6% 78.1%
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CREDIT QUALITY** 4/30/05 10/31/04 4/30/04
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A 8.5% 4.7% 9.3%
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BBB 27.8 29.7 33.2
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BB 32.8 39.6 35.3
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B 5.7 15.3 12.9
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CCC 3.6 0.7 1.7
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Selective Default 1.8 0.9 0.9
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Non-Rated 10.9 4.9 2.9
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Cash Equivalents 8.4 3.2 1.1
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Other assets less liabilities 0.5 1.0 2.7
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TOTAL 100.0% 100.0% 100.0%
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* Prices and other characteristics will vary over time.
** Weightings represent percentages of net assets as of the dates indicated.
The Fund's portfolio is actively managed and its composition will vary over
time. Credit quality ratings shown are based on those assigned by Standard &
Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P"), to individual
portfolio holdings. S&P is an independent ratings agency.
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8
GLOBAL HIGH INCOME DOLLAR FUND INC.
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
----------------------------------------------------------------------------------------------------------------
FOREIGN DEBT SECURITIES --91.02%
----------------------------------------------------------------------------------------------------------------
ARGENTINA -- 10.08%
----------------------------------------------------------------------------------------------------------------
$ 700 Banco de Galicia y Buenos Aires(5) 01/01/10 6.290%+ $ 626,500
----------------------------------------------------------------------------------------------------------------
ARS 20,847 Republic of Argentina 12/31/33 0.015@ 6,503,620
----------------------------------------------------------------------------------------------------------------
$ 2,587 Republic of Argentina 04/01/07 2.000 522,595
----------------------------------------------------------------------------------------------------------------
ARS 4,270 Republic of Argentina 01/03/10 2.000 2,339,831
----------------------------------------------------------------------------------------------------------------
$ 7,189 Republic of Argentina 12/28/10 2.000 2,731,930
----------------------------------------------------------------------------------------------------------------
4,165 Republic of Argentina 01/03/16 2.000 1,924,230
----------------------------------------------------------------------------------------------------------------
2,820 Republic of Argentina 04/30/13 2.450@ 2,044,500
----------------------------------------------------------------------------------------------------------------
12,357 Republic of Argentina (1) 08/03/12 3.010+ 10,305,738
----------------------------------------------------------------------------------------------------------------
5,000 Republic of Argentina, PAR (5) 03/31/23 6.000 2,700,000
----------------------------------------------------------------------------------------------------------------
29,698,944
----------------------------------------------------------------------------------------------------------------
BRAZIL -- 16.86%
----------------------------------------------------------------------------------------------------------------
$ 3,192 Brazil Real Credit-Linked Note 01/03/07 12.080@ 2,401,137
----------------------------------------------------------------------------------------------------------------
1,200 Federal Republic of Brazil 01/20/34 8.250 1,093,800
----------------------------------------------------------------------------------------------------------------
5,300 Federal Republic of Brazil 10/14/19 8.875 5,247,000
----------------------------------------------------------------------------------------------------------------
5,270 Federal Republic of Brazil 04/15/24 8.875 5,138,250
----------------------------------------------------------------------------------------------------------------
2,318 Federal Republic of Brazil 05/15/27 10.125 2,499,963
----------------------------------------------------------------------------------------------------------------
2,125 Federal Republic of Brazil 08/17/40 11.000 2,406,563
----------------------------------------------------------------------------------------------------------------
2,111 Federal Republic of Brazil, C 04/15/14 8.000 2,104,373
----------------------------------------------------------------------------------------------------------------
1,935 Federal Republic of Brazil, DCB 04/15/12 4.313+ 1,811,942
----------------------------------------------------------------------------------------------------------------
6,000 Federal Republic of Brazil, DISC(5) 04/15/24 4.250+ 5,460,000
----------------------------------------------------------------------------------------------------------------
23,360 Federal Republic of Brazil, PAR(5) 04/15/24 6.000+ 21,491,200
----------------------------------------------------------------------------------------------------------------
49,654,228
----------------------------------------------------------------------------------------------------------------
BULGARIA -- 1.03%
----------------------------------------------------------------------------------------------------------------
$ 2,450 Republic of Bulgaria 01/15/15 8.250 3,034,937
----------------------------------------------------------------------------------------------------------------
COLOMBIA -- 3.50%
----------------------------------------------------------------------------------------------------------------
$ 7,491 Republic of Colombia(5) 04/09/11 9.750 8,329,701
----------------------------------------------------------------------------------------------------------------
1,840 Republic of Colombia 01/28/33 10.375 1,982,600
----------------------------------------------------------------------------------------------------------------
10,312,301
----------------------------------------------------------------------------------------------------------------
DOMINICAN REPUBLIC -- 0.85%
----------------------------------------------------------------------------------------------------------------
$ 1,660 Republic of Dominican 01/23/13 9.040 1,531,350
----------------------------------------------------------------------------------------------------------------
1,000 Republic of Dominican 09/27/06 9.500 982,500
----------------------------------------------------------------------------------------------------------------
2,513,850
----------------------------------------------------------------------------------------------------------------
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9
GLOBAL HIGH INCOME DOLLAR FUND INC.
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
----------------------------------------------------------------------------------------------------------------
FOREIGN DEBT SECURITIES -- (CONTINUED)
----------------------------------------------------------------------------------------------------------------
ECUADOR -- 2.36%
----------------------------------------------------------------------------------------------------------------
$ 3,065 Republic of Ecuador 08/15/30 8.000%++ $ 2,482,650
----------------------------------------------------------------------------------------------------------------
5,500 Republic of Ecuador, 144A 08/15/30 8.000++ 4,455,000
----------------------------------------------------------------------------------------------------------------
6,937,650
----------------------------------------------------------------------------------------------------------------
EL SALVADOR -- 0.97%
----------------------------------------------------------------------------------------------------------------
$ 2,770 Republic of El Salvador 04/10/32 8.250 2,853,100
----------------------------------------------------------------------------------------------------------------
GERMANY -- 3.66%
----------------------------------------------------------------------------------------------------------------
$ 8,500 Aries Vermogensverwaltungs, 144A 10/25/14 9.600 10,773,750
----------------------------------------------------------------------------------------------------------------
INDONESIA -- 0.64%
----------------------------------------------------------------------------------------------------------------
$ 1,970 Republic of Indonesia, 144A 04/20/15 7.250 1,898,588
----------------------------------------------------------------------------------------------------------------
MALAYSIA -- 2.93%
----------------------------------------------------------------------------------------------------------------
MYR 32,670 Johor Corp. 07/31/12 1.000++ 8,640,355
----------------------------------------------------------------------------------------------------------------
MEXICO -- 10.20%
----------------------------------------------------------------------------------------------------------------
$ 1,145 Conproca S.A.de c.v. 06/16/10 12.000 1,408,350
----------------------------------------------------------------------------------------------------------------
615 PEMEX Finance Ltd. 05/15/07 8.020 635,403
----------------------------------------------------------------------------------------------------------------
8,000 PEMEX Project Funding Master Trust 02/01/22 8.625 9,280,000
----------------------------------------------------------------------------------------------------------------
1,250 PEMEX Project Funding Master Trust, 144A 03/30/18 9.250 1,537,500
----------------------------------------------------------------------------------------------------------------
8,872 United Mexican States 04/08/33 7.500 9,603,940
----------------------------------------------------------------------------------------------------------------
3,400 United Mexican States 08/15/31 8.300 3,978,000
----------------------------------------------------------------------------------------------------------------
MXN 40,000 United Mexican States 12/29/05 9.000 3,587,837
----------------------------------------------------------------------------------------------------------------
30,031,030
----------------------------------------------------------------------------------------------------------------
NETHERLANDS -- 2.65%
----------------------------------------------------------------------------------------------------------------
EUR 781 ING Bank NV (2) 05/31/14 5.109@ 537,917
----------------------------------------------------------------------------------------------------------------
1,115 ING Bank NV (2) 05/31/13 5.575@ 823,256
----------------------------------------------------------------------------------------------------------------
1,373 ING Bank NV (2) 05/31/12 6.089@ 1,082,639
----------------------------------------------------------------------------------------------------------------
2,136 ING Bank NV (2) 05/31/11 6.627@ 1,822,843
----------------------------------------------------------------------------------------------------------------
1,093 ING Bank NV (2) 05/31/10 7.223@ 1,005,485
----------------------------------------------------------------------------------------------------------------
606 ING Bank NV (2) 05/31/09 7.879@ 597,198
----------------------------------------------------------------------------------------------------------------
UAH 8,270 ING Bank NV 12/30/09 11.890 1,934,479
----------------------------------------------------------------------------------------------------------------
7,803,817
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10
GLOBAL HIGH INCOME DOLLAR FUND INC.
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
----------------------------------------------------------------------------------------------------------------
FOREIGN DEBT SECURITIES -- (CONCLUDED)
----------------------------------------------------------------------------------------------------------------
PERU -- 2.10%
----------------------------------------------------------------------------------------------------------------
$ 1,110 Republic of Peru 05/03/16 8.375% $ 1,184,925
----------------------------------------------------------------------------------------------------------------
1,100 Republic of Peru 02/06/15 9.875 1,295,250
----------------------------------------------------------------------------------------------------------------
3,990 Republic of Peru, FLIRB 03/07/17 5.000+ 3,710,421
----------------------------------------------------------------------------------------------------------------
6,190,596
----------------------------------------------------------------------------------------------------------------
PHILIPPINES -- 3.51%
----------------------------------------------------------------------------------------------------------------
$ 3,545 Republic of Philippines 03/16/25 10.625 3,823,991
----------------------------------------------------------------------------------------------------------------
6,645 Republic of Philippines 02/02/30 9.500 6,512,100
----------------------------------------------------------------------------------------------------------------
10,336,091
----------------------------------------------------------------------------------------------------------------
POLAND -- 0.83%
----------------------------------------------------------------------------------------------------------------
PLN 8,110 Republic of Poland 06/24/08 5.750 2,456,475
----------------------------------------------------------------------------------------------------------------
QATAR -- 4.63%
----------------------------------------------------------------------------------------------------------------
$ 9,120 State of Qatar 06/15/30 9.750 13,634,400
----------------------------------------------------------------------------------------------------------------
RUSSIA -- 13.90%
----------------------------------------------------------------------------------------------------------------
$ 11,630 Russian Federation 03/31/30 5.000++ 12,371,412
----------------------------------------------------------------------------------------------------------------
18,984 Russian Federation, 144A 03/31/30 5.000++ 20,193,793
----------------------------------------------------------------------------------------------------------------
7,640 Russian Federation 03/31/10 8.250 8,365,800
----------------------------------------------------------------------------------------------------------------
40,931,005
----------------------------------------------------------------------------------------------------------------
SLOVAKIA -- 1.27%
----------------------------------------------------------------------------------------------------------------
SKK 120,000 Republic of Slovakia 01/14/07 3.760@ 3,745,339
----------------------------------------------------------------------------------------------------------------
TURKEY -- 4.48%
----------------------------------------------------------------------------------------------------------------
TRL 3,872 Turkish Credit Linked Note 04/27/07 0.000@ 4,039,991
----------------------------------------------------------------------------------------------------------------
$ 1,060 Republic of Turkey 02/14/34 8.000 1,022,900
----------------------------------------------------------------------------------------------------------------
2,830 Republic of Turkey 06/30/11 9.000 3,070,550
----------------------------------------------------------------------------------------------------------------
3,862 Republic of Turkey 01/15/30 11.875 5,059,220
----------------------------------------------------------------------------------------------------------------
13,192,661
----------------------------------------------------------------------------------------------------------------
UKRAINE -- 2.02%
----------------------------------------------------------------------------------------------------------------
$ 5,560 Republic of Ukraine 06/11/13 7.650 5,949,200
----------------------------------------------------------------------------------------------------------------
VENEZUELA -- 2.55%
----------------------------------------------------------------------------------------------------------------
$ 1,520 Republic of Venezuela 10/08/14 8.500 1,497,200
----------------------------------------------------------------------------------------------------------------
2,020 Republic of Venezuela 09/15/27 9.250 1,990,710
----------------------------------------------------------------------------------------------------------------
1,160 Republic of Venezuela 09/15/27 9.250 1,143,180
----------------------------------------------------------------------------------------------------------------
2,900 Republic of Venezuela 01/13/34 9.375 2,863,750
----------------------------------------------------------------------------------------------------------------
7,494,840
----------------------------------------------------------------------------------------------------------------
Total Foreign Debt Securities (Cost $255,664,822) 268,083,157
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11
GLOBAL HIGH INCOME DOLLAR FUND INC.
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
NUMBERS OF
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
-----------------------------------------------------------------------------------------------------------------
RIGHTS -- 0.03%
-----------------------------------------------------------------------------------------------------------------
MEXICO -- 0.03%
-----------------------------------------------------------------------------------------------------------------
1,885 United Mexican States Value Recovery Rights,
Series C, Expiration Date 06/30/05 (3) $ 11,876
-----------------------------------------------------------------------------------------------------------------
1,885 United Mexican States Value Recovery Rights,
Series D, Expiration Date 06/30/06 (3) 43,355
-----------------------------------------------------------------------------------------------------------------
1,885 United Mexican States Value Recovery Rights,
Series E, Expiration Date 06/30/07 (3) 40,527
-----------------------------------------------------------------------------------------------------------------
Total Rights (Cost $0) 95,758
-----------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000)
-----------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.41%
-----------------------------------------------------------------------------------------------------------------
RUSSIA -- 2.30%
-----------------------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 2.30%
-----------------------------------------------------------------------------------------------------------------
$ 4,000 Russia Over the Counter
time deposits(2)(4) 08/22/05 3.000%* 4,001,709
-----------------------------------------------------------------------------------------------------------------
2,710 Russia Over the Counter
time deposits(2)(4) 08/22/05 3.500* 2,770,249
-----------------------------------------------------------------------------------------------------------------
6,771,958
-----------------------------------------------------------------------------------------------------------------
UNITED STATES -- 6.11%
-----------------------------------------------------------------------------------------------------------------
U.S.GOVERNMENT OBLIGATIONS -- 0.67%
-----------------------------------------------------------------------------------------------------------------
2,000 U.S.Treasury Bills(5) 07/21/05 2.640* 1,987,690
-----------------------------------------------------------------------------------------------------------------
NUMBER OF
SHARES
(000)
-----------------------------------------------------------------------------------------------------------------
OTHER -- 5.44%**
-----------------------------------------------------------------------------------------------------------------
16,015 UBS Supplementary Trust -- U.S.Cash
Management Prime Fund 2.770* 16,015,037
-----------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $20,713,151) 24,774,685
-----------------------------------------------------------------------------------------------------------------
Total Investments -- 99.46% (Cost $276,377,973) 292,953,600
-----------------------------------------------------------------------------------------------------------------
Cash and other assets, less liabilities -- 0.54% 1,576,629
-----------------------------------------------------------------------------------------------------------------
Net Assets -- 100.00% $294,530,229
-----------------------------------------------------------------------------------------------------------------
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12
GLOBAL HIGH INCOME DOLLAR FUND INC.
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
Note: The Portfolio of Investments is listed by the issuer's country of origin.
+ Reflects rate at April 30, 2005 on variable rate instruments.
++ Reflects rate at April 30, 2005 on step coupon rate instruments.
@ Reflects annualized yield at April 30, 2005 on zero coupon bonds.
* Interest rate reflects yield at April 30, 2005.
** Security is issued by a fund that is advised by a related entity of UBS
Global Asset Management (US) Inc., Global High Income Dollar Fund Inc.'s
advisor.
(1) Bond interest in default.
(2) Security is illiquid. These securities amounted to $12,641,296 or 4.29%
of net assets.
(3) Rights do not currently accrue income. Quarterly income, if any, will
vary based on several factors including oil exports, prices and
inflation.
(4) Security is being fair valued by a valuation commitee under the direction
of the Board of Directors. At April 30, 2005, the value of these
securities amounted to $6,771,958 or 2.30% of net assets.
(5) All or a portion of these securities were pledged to cover margin
requirements for futures contracts and/or forward foreign currency
contracts.
144A Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities are considered liquid and may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At April 30, 2005 the value of these securities
amounted to $38,858,631 or 13.19% of net assets.
ARS Argentina Peso
C Front-Loaded Interest Reduction with Capitalized Interest Bond
DCB Debt Conversion Bond
DISC Discount Bond
EUR Euro
FLIRB Front-Loaded Interest Reduction Bond
MYR Malaysian Ringgit
MXN Mexican Peso
PAR Par Bond
PLN Polish Zloty
SKK Slovakia Koruna
TRL Turkish Lira
UAH Ukraine Hryvnia
FUTURES CONTRACTS
Global High Income Dollar Fund Inc. had the following open futures contracts as
of April 30, 2005:
UNREALIZED
EXPIRATION COST/ CURRENT APPRECIATION/
DATE PROCEEDS VALUE (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTE FUTURES BUY CONTRACTS:
5 Year U.S. Treasury Notes, 150 contracts June 2005 $16,176,719 $16,267,969 $91,250
-----------------------------------------------------------------------------------------------------------------
U.S. TREASURY BOND FUTURES SALE CONTRACTS:
10 Year U.S. Treasury Bonds, 424 contracts June 2005 48,051,788 48,693,750 (641,963)
-----------------------------------------------------------------------------------------------------------------
Total net unrealized depreciation on futures contracts (550,713)
-----------------------------------------------------------------------------------------------------------------
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13
GLOBAL HIGH INCOME DOLLAR FUND INC.
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS
Unrealized
CONTRACTS TO IN MATURITY APPRECIATION/
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
---------------------------------------------------------------------------------------------------------------
Chinese Renminbi 47,924,077 USD 5,960,706 07/05/05 $ 71,406
---------------------------------------------------------------------------------------------------------------
Euro 9,590,000 USD 12,303,251 07/21/05 (115,991)
---------------------------------------------------------------------------------------------------------------
Mexican Peso 69,916,102 USD 6,151,879 07/05/05 (75,925)
---------------------------------------------------------------------------------------------------------------
Mexican Peso 24,000,000 USD 2,154,205 05/23/05 (2,598)
---------------------------------------------------------------------------------------------------------------
United States Dollar 5,867,656 CNY 47,924,077 07/05/05 21,645
---------------------------------------------------------------------------------------------------------------
United States Dollar 5,960,706 MXN 69,916,102 07/05/05 267,097
---------------------------------------------------------------------------------------------------------------
United States Dollar 7,436,350 THB 295,000,000 07/21/05 47,797
---------------------------------------------------------------------------------------------------------------
Total net unrealized appreciation on forward foreign currency contracts $ 213,431
---------------------------------------------------------------------------------------------------------------
CURRENCY TYPE ABBREVIATIONS:
CNY Chinese Renminbi
MXN Mexican Peso
THB Thai Baht
USD United States Dollar
INDUSTRY DIVERSIFICATION
AS A PERCENT OF NET ASSETS
AS OF APRIL 30, 2005
--------------------------------------------------------------------------------
Foreign Debt Securities:
International Corporate Bonds:
Commercial Banks ........................................ 2.86%
Oil & Gas ............................................... 3.67
Diversified Financial Services .......................... 3.66
Construction & Engineering .............................. 0.48
Capital Markets ......................................... 0.22
------
Total International Corporate Bonds ................... 10.89
Foreign Government Bonds ................................... 80.13
------
Total Foreign Debt Securities .................................... 91.02
Rights ..................................................... 0.03
Short-Term Investments ..................................... 8.41
------
Total Investments ................................................ 99.46
Cash and Other Assets, Less Liabilities .......................... 0.54
------
Net Assets ....................................................... 100.00%
------
See accompanying notes to financial statements
--------------------------------------------------------------------------------
14
GLOBAL HIGH INCOME DOLLAR FUND INC.
STATEMENT OF ASSETS AND LIABILITIES -- APRIL 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS:
Investments in securities of unaffiliated issuers, at value
(cost - $260,362,936) $276,938,563
----------------------------------------------------------------------------------------
Investments in securities of a related entity, at value
(cost - $16,015,037) 16,015,037
----------------------------------------------------------------------------------------
Cash collateral for futures contracts 15,628
----------------------------------------------------------------------------------------
Foreign currency, at value (cost - $292) 278
----------------------------------------------------------------------------------------
Receivable for investments sold 4,483,036
----------------------------------------------------------------------------------------
Interest receivable 2,799,860
----------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency contracts 407,945
----------------------------------------------------------------------------------------
Variation margin receivable 42,000
----------------------------------------------------------------------------------------
Other assets 11,970
----------------------------------------------------------------------------------------
Total assets 300,714,317
----------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased 3,789,062
----------------------------------------------------------------------------------------
Due to custodian bank 1,757,467
----------------------------------------------------------------------------------------
Payable to investment advisor and administrator 300,364
----------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency contracts 194,514
----------------------------------------------------------------------------------------
Directors fees payable 3,634
----------------------------------------------------------------------------------------
Accrued expenses and other liabilities 139,047
----------------------------------------------------------------------------------------
Total liabilities 6,184,088
----------------------------------------------------------------------------------------
NET ASSETS:
Capital stock - $0.001 par value; 100,000,000 shares authorized;
19,439,667 shares issued and outstanding 268,246,555
----------------------------------------------------------------------------------------
Distributions in excess of net investment income (8,460,710)
----------------------------------------------------------------------------------------
Accumulated net realized gain from investment transactions 18,507,671
----------------------------------------------------------------------------------------
Net unrealized appreciation of investments, futures, forward foreign
currency contracts and other assets and liabilities denominated in
foreign currencies 16,236,713
----------------------------------------------------------------------------------------
Net assets $294,530,229
----------------------------------------------------------------------------------------
Net asset value per share $15.15
----------------------------------------------------------------------------------------
See accompanying notes to financial statements
--------------------------------------------------------------------------------
15
GLOBAL HIGH INCOME DOLLAR FUND INC.
STATEMENT OF OPERATIONS
FOR THE SIX
MONTHS ENDED
APRIL 30, 2005
(UNAUDITED)
-------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income net of foreign witholding taxes of $9,579
(includes $135,185 from a related entity) $11,004,410
-------------------------------------------------------------------------------------
EXPENSES:
Investment advisory and administration fees 1,901,734
-------------------------------------------------------------------------------------
Custody and accounting fees 132,421
-------------------------------------------------------------------------------------
Reports and notices to shareholders 64,735
-------------------------------------------------------------------------------------
Professional fees 41,213
-------------------------------------------------------------------------------------
Directors' fees 9,044
-------------------------------------------------------------------------------------
Transfer agency fees 8,667
-------------------------------------------------------------------------------------
Other expenses 28,258
-------------------------------------------------------------------------------------
2,186,072
-------------------------------------------------------------------------------------
Net investment income 8,818,338
-------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES:
Net realized gain (loss) from:
-------------------------------------------------------------------------------------
Investment transactions 18,287,338 +
-------------------------------------------------------------------------------------
Foreign currency transactions 264,821
-------------------------------------------------------------------------------------
Futures (285,011)
-------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of:
-------------------------------------------------------------------------------------
Investments (10,010,500)
-------------------------------------------------------------------------------------
Futures (272,126)
-------------------------------------------------------------------------------------
Other assets, liabilities and forward foreign currency contracts 357,634
-------------------------------------------------------------------------------------
Net realized and unrealized gains from investment activities 8,342,156
-------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $17,160,494
-------------------------------------------------------------------------------------
+ Net of $25,818 deferred country taxes.
See accompanying notes to financial statements
--------------------------------------------------------------------------------
16
GLOBAL HIGH INCOME DOLLAR FUND INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Six
Months Ended For the
April 30, 2005 Year Ended
(unaudited) October 31, 2004
------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $8,818,338 $19,115,856
------------------------------------------------------------------------------------------------------
Net realized gain from investment transactions 18,287,338 39,638,312
------------------------------------------------------------------------------------------------------
Net realized gain (loss) from futures and foreign
currency transactions (20,190) 816,652
------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of:
------------------------------------------------------------------------------------------------------
Investments (10,010,500) (15,591,446)
------------------------------------------------------------------------------------------------------
Futures (272,126) (222,228)
------------------------------------------------------------------------------------------------------
Other assets, liabilities and forward foreign
currency contracts 357,634 (5,537)
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 17,160,494 43,751,609
------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (16,996,101)(1) (18,957,163)
------------------------------------------------------------------------------------------------------
Net realized gains (24,993,580) (14,951,448)
------------------------------------------------------------------------------------------------------
Total dividends and distributions to shareholders (41,989,681) (33,908,611)
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (24,829,187) 9,842,998
------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 319,359,416 309,516,418
------------------------------------------------------------------------------------------------------
End of period $294,530,229 $319,359,416
------------------------------------------------------------------------------------------------------
Distributions in excess of net investment income ($8,460,710) ($282,947)
------------------------------------------------------------------------------------------------------
(1) The actual sources of the Fund's fiscal year 2005 dividend/distribution may
be net investment income, net realized capital gains, return of capital or
a combination of the foregoing and may be subject to retroactive
recharacterization at the end of the Fund's fiscal year based on tax
regulations. Shareholders will be informed of the tax characteristics of
dividends/distributions after the close of the 2005 fiscal year.
See accompanying notes to financial statements
--------------------------------------------------------------------------------
17
GLOBAL HIGH INCOME DOLLAR FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Global High Income Dollar Fund Inc. (the "Fund") was incorporated in Maryland on
February 23, 1993 and is registered with the Securities and Exchange Commission
as a closed-end, non-diversified management investment company whose shares
trade on the New York Stock Exchange ("NYSE"). The Fund's primary investment
objective is to achieve a high level of current income. As a secondary objective
the Fund seeks capital appreciation, to the extent consistent with its primary
objective.
In the normal course of business the Fund may enter into contracts that contain
a variety of representations that provide general indemnification. The Fund's
maximum exposure under these arrangements is unknown as this would involve
future claims that may be made against the Fund that have not yet occurred.
However, the Fund has not had prior claims or losses pursuant to these contracts
and expects the risk of loss to be remote.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires Fund management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies:
VALUATION OF INVESTMENTS--The Fund calculates its net asset value based on the
current market value, where available, for its portfolio securities. The Fund
normally obtains market values for its securities from independent pricing
sources and broker-dealers. Independent pricing sources may use reported last
sale prices, current market quotations or valuations from computerized
"matrix" systems that derive values based on comparable securities. A matrix
system incorporates parameters such as security quality, maturity and coupon,
and/or research and evaluations by its staff, including review of broker-dealer
market price quotations, if available, in determining the valuation of the
portfolio securities. Securities traded in the over-the-counter ("OTC") market
and listed on The Nasdaq Stock Market, Inc. ("NASDAQ") normally are valued at
the NASDAQ Official Closing Price. Other OTC securities are valued at the last
bid price available on the valuation date prior to valuation. Securities which
are listed on U.S. and foreign stock exchanges normally are valued at the last
sale price on the day the securities are valued or, lacking any sales on such
day, at the last available bid price. In cases where securities are traded on
more than one exchange, the securities are valued on the exchange designated as
the primary market by UBS Global Asset Management (US) Inc. ("UBS Global AM"),
the investment advisor and administrator of the Fund. UBS Global AM is an
indirect wholly owned asset management subsidiary of UBS AG, an internationally
diversified organization with headquarters in Zurich, Switzerland and operations
in many areas of the financial services industry. If a market value is not
available from an independent pricing source for a particular security, that
security is valued at fair value as determined in good faith by or under the
direction of the Fund's board of
--------------------------------------------------------------------------------
18
GLOBAL HIGH INCOME DOLLAR FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
directors (the "Board"). All investments quoted in foreign currencies will be
valued weekly in U.S. dollars on the basis of the foreign currency exchange
rates.
Foreign currency exchange rates are generally determined prior to the close of
the NYSE. Occasionally, events affecting the value of foreign investments and
such exchange rates occur between the time at which they are determined and the
close of the NYSE, which will not be reflected in the computation of the Fund's
net asset value. If events materially affecting the value of such securities or
currency exchange rates occur during such time periods, the securities will be
valued at their fair value as determined in good faith by or under the direction
of the Board.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
recorded on the trade date. Realized gains and losses from investment and
foreign exchange transactions are calculated using the identified cost method.
Interest income is recorded on an accrual basis. Discounts are accreted and
premiums are amortized as adjustments to interest income and the identified cost
of investments.
FOREIGN CURRENCY TRANSLATION--The books and records of the Fund are maintained
in U.S. dollars using the WM/Reuters closing spot rates as of 4:00 pm London
time. For purposes of calculating the U.S. dollar equivalent value of a non-U.S.
dollar denominated obligation, foreign currency amounts are translated into U.S.
dollars on the following basis: (1) market value of investment securities and
other assets and liabilities - at the exchange rates prevailing at the end of
the Fund's fiscal period; and (2) purchases and sales of investment securities
and income and expenses - at the rates of exchange prevailing on the respective
dates of such transactions.
Although the net assets and the market value of the Fund's portfolio are
presented at the foreign exchange rates at the end of the Fund's fiscal period,
the Fund does not generally isolate the effect of fluctuations in foreign
exchange rates from the effect of the changes in market prices of securities.
However, the Fund does isolate the effect of fluctuations in foreign exchange
rates when determining the gain or loss upon the sale or maturity of foreign
currency-denominated securities pursuant to U.S. federal income tax regulations.
Certain foreign exchange gains and losses included in realized and unrealized
gains and losses are included in or are a reduction of ordinary income in
accordance with U.S. federal income tax regulations.
FORWARD FOREIGN CURRENCY CONTRACTS--The Fund may enter into forward foreign
currency exchange contracts ("forward contracts") in connection with planned
purchases or sales of securities or to hedge the U.S. dollar value of portfolio
securities denominated in a particular currency. The Fund may also use forward
contracts to enhance income.
The Fund has no specific limitation on the percentage of assets which may be
committed to such contracts. The Fund may enter into forward contracts or
maintain
--------------------------------------------------------------------------------
19
GLOBAL HIGH INCOME DOLLAR FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
a net exposure to forward contracts only if (1) the consummation of the
contracts would not obligate the Fund to deliver an amount of foreign currency
in excess of the value of the position being hedged by such contracts or (2) the
Fund identifies cash or liquid securities in an amount not less than the value
of its total assets committed to the consummation of the forward contracts and
not covered as provided in (1) above, as marked-to-market daily.
Risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their forward contracts and
from unanticipated movements in the value of foreign currencies relative to the
U.S. dollar.
Fluctuations in the value of forward contracts are recorded for book purposes as
unrealized gains or losses by the Fund. Realized gains and losses include net
gains and losses recognized by the Fund on contracts which have been sold or
matured.
FUTURES CONTRACTS--The Fund may use financial futures contracts for hedging
purposes and to adjust exposure to U.S. and foreign fixed income markets in
connection with a reallocation of the Fund's assets or to manage the average
duration of the Fund. However, imperfect correlations between futures contracts
and the related securities or markets, or market disruptions, do not normally
permit full control of these risks at all times. Using financial futures
contracts involves various market risks. The maximum amount at risk from the
purchase of a futures contract is the contract value.
Upon entering into a financial futures contract, the Fund is required to pledge
to a broker an amount of cash and/or liquid securities equal to a certain
percentage of the contract amount. This amount is known as the "initial margin".
Subsequent payments, known as "variation margin" are made or received by the
Fund each day, depending on the daily fluctuations in the value of the
underlying financial futures contracts. Such variation margin is recorded for
financial statement purposes on a daily basis as an unrealized gain or loss on
futures until the financial futures contract is closed, at which time the net
gain or loss is reclassified to realized gain or loss on futures.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends from net investment
income and distributions from net realized capital gains and/or return of
capital is determined in accordance with U.S. federal income tax regulations,
which may differ from U.S. generally accepted accounting principles. These
"book/tax" differences are either considered temporary or permanent in nature.
To the extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification.
--------------------------------------------------------------------------------
20
GLOBAL HIGH INCOME DOLLAR FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
CONCENTRATION OF RISK
Investing in securities of foreign issuers and currency transactions may involve
certain considerations and risks not typically associated with investments in
the United States. These risks include revaluation of currencies, adverse
fluctuations in foreign currency values and possible adverse political, social
and economic developments, including those particular to a specific industry,
country or region, which could cause the securities and their markets to be less
liquid and prices more volatile than those of comparable U.S. companies and U.S.
government securities. These risks are greater with respect to securities of
issuers located in emerging market countries in which the Fund invests. The
ability of the issuers of debt securities held by the Fund to meet their
obligations may be affected by economic and political developments particular to
a specific industry, country or region.
INVESTMENT ADVISOR AND ADMINISTRATOR AND OTHER TRANSACTIONS WITH RELATED
ENTITIES
The Board has approved an investment advisory and administration contract
("Advisory Contract") with UBS Global AM, under which UBS Global AM serves as
investment advisor and administrator of the Fund. In accordance with the
Advisory Contract, the Fund pays UBS Global AM an investment advisory and
administration fee, which is accrued weekly and paid monthly, at the annual rate
of 1.25% of the Fund's average weekly net assets.
The Fund invests in shares of the UBS Supplementary Trust -- U.S. Cash
Management Prime Fund ("Supplementary Trust"). Supplementary Trust is a business
trust managed by UBS Global Asset Management (Americas) Inc., an related entity
of UBS Global AM.
The Fund pays no management fees to Supplementary Trust. Distributions from the
Supplementary Trust are reflected as interest income on the statement of
operations.
Amounts relating to those investments at April 30, 2005 and for the period ended
are summarized as follows:
% OF
SALES INTEREST NET
FUND PURCHASES PROCEEDS INCOME VALUE ASSETS
---------------------------------------------------------------------------------------------
UBS Supplementary Trust --
U.S. Cash Management
Prime Fund $162,881,312 $156,984,823 $135,185 $16,015,037 5.44%
---------------------------------------------------------------------------------------------
ADDITIONAL INFORMATION REGARDING COMPENSATION TO AFFILIATE OF A BOARD MEMBER
Effective March 1, 2005, Professor Meyer Feldberg accepted the position of
senior advisor to Morgan Stanley, resulting in his becoming an interested
director of
--------------------------------------------------------------------------------
21
GLOBAL HIGH INCOME DOLLAR FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
the Fund. The Fund has been informed that Professor Feldberg's role at Morgan
Stanley does not involve matters directly affecting any UBS funds. UBS Global AM
may execute Fund portfolio transactions through Morgan Stanley based on that
firm's ability to provide best execution of the transactions. For the six months
ended April 30, 2005, the Fund did not purchase or sell securities in principal
trades with Morgan Stanley.
SECURITIES LENDING
The Fund may lend securities up to 33 1/3% of its total assets to qualified
broker-dealers or institutional investors. The loans are secured at all times
by cash, cash equivalents or U.S. government securities in an amount at least
equal to the market value of the securities loaned, plus accrued interest and
dividends, determined on a daily basis and adjusted accordingly. The Fund will
regain ownership of loaned securities to exercise certain beneficial rights;
however, the Fund may bear the risk of delay in recovery of, or even loss of
rights in, the securities loaned should the borrower fail financially. The Fund
receives compensation for lending its securities from interest or dividends
earned on the cash, cash equivalents or U.S. government securities held as
collateral, net of fee rebates paid to the borrower plus reasonable
administrative and custody fees. UBS Securities LLC, an indirect wholly owned
subsidiary of UBS AG, and other affiliated broker-dealers have been approved as
borrowers under the Fund's securities lending program. For the six months ended
April 30, 2005, the Fund did not have any securities on loan, and the Fund did
not owe UBS Securities LLC compensation as the Fund's lending agent.
CAPITAL STOCK
There are 100,000,000 shares of $0.001 par value common stock authorized and
19,439,667 shares outstanding at April 30, 2005. For the six months ended April
30, 2005 and for the year ended October 31, 2004, the Fund did not repurchase
any shares of common stock.
For the period September 17, 1998 (commencement of repurchase program) through
February 28, 2001, the Fund repurchased 3,297,000 shares of common stock at an
average market price per share of $11.68 and a weighted average discount from
net asset value of 14.88%. As of April 30, 2005, paid-in-capital has been
reduced by the cost of $38,698,693 of capital stock repurchased.
PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2005, aggregate purchases and sales of
portfolio securities, excluding short-term securities, were $248,633,954 and
$293,116,936, respectively.
--------------------------------------------------------------------------------
22
GLOBAL HIGH INCOME DOLLAR FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEDERAL TAX STATUS
The Fund intends to distribute substantially all of its taxable income and to
comply with the other requirements of the Internal Revenue Code applicable to
regulated investment companies. Accordingly, no provision for federal income
taxes is required. In addition, by distributing during each calendar year,
substantially all of its net investment income, realized capital gains and
certain other amounts, if any, the Fund intends not to be subject to a federal
excise tax.
The tax character of distributions paid during the fiscal year ended October 31,
2004 was as follows:
DISTRIBUTIONS PAID FROM: 2004
--------------------------------------------------------------------------------
Net investment income $30,792,351
--------------------------------------------------------------------------------
Net realized gains 3,116,260
--------------------------------------------------------------------------------
Total distributions paid $33,908,611
--------------------------------------------------------------------------------
At October 31, 2004, the components of accumulated earnings on a tax basis were
as follows:
Undistributed long-term capital gains $24,993,049
--------------------------------------------------------------------------------
Unrealized appreciation 26,119,812
--------------------------------------------------------------------------------
Total accumulated earnings $51,112,861
--------------------------------------------------------------------------------
The tax character of distributions paid and the components of accumulated
earnings (deficit) on a tax basis for the current fiscal year will be calculated
after the Fund's fiscal year ending October 31, 2005.
The difference between book-basis and tax-basis net unrealized appreciation of
investments is attributable to premium amortization adjustments and wash sales.
During the fiscal year ended October 31, 2004, the Fund had no capital loss
carry-forwards to offset current year gains.
For federal income tax purposes, which was substantially the same for book
purposes, the tax cost of investments and the components of net unrealized
appreciation of investments at April 30, 2005 were as follows:
Tax cost of investments $276,377,973
----------------------------------------------------------------------------------------
Gross appreciation (investments having an excess of value over cost) 19,247,564
----------------------------------------------------------------------------------------
Gross depreciation (investments having an excess of cost over value) (2,671,937)
----------------------------------------------------------------------------------------
Net unrealized appreciation of investments $ 16,575,627
----------------------------------------------------------------------------------------
To reflect reclassifications arising from permanent "book/tax" differences for
the year ended October 31, 2004, distributions in excess of net investment
income was decreased by $15,220,861 and accumulated net realized gain from
investment activities was decreased by $15,220,861. These differences are
primarily due to tax treatment of foreign currency transactions, paydown gains
and losses, distribution reclasses and premium adjustments for certain debt
obligations.
--------------------------------------------------------------------------------
23
GLOBAL HIGH INCOME DOLLAR FUND INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each period is
presented below:
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED OCTOBER 31,
APRIL 30, 2005 -----------------------------------------------------------
(UNAUDITED) 2004 2003 2002+ 2001 2000
-------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 16.43 $ 15.92 $ 14.14 $ 14.16 $ 14.42 $ 13.66
-------------------------------------------------------------------------------------------------------------------------
Net investment income 0.45 0.98 1.02 1.04 1.24 1.48
-------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gains from investment and
foreign currency transactions 0.43 1.27 2.44 0.52 0.10 0.71
-------------------------------------------------------------------------------------------------------------------------
Net increase from investment
operations 0.88 2.25 3.46 1.56 1.34 2.19
-------------------------------------------------------------------------------------------------------------------------
Dividends from net
investment income (0.87)(2) (0.97) (1.13) (1.31) (1.15) (1.48)
-------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains
from investment transactions (1.29) (0.77) (0.53) - - -
-------------------------------------------------------------------------------------------------------------------------
Distributions from paid-in-capital - - (0.02) (0.27) (0.46) -
-------------------------------------------------------------------------------------------------------------------------
Distributions in excess of net
investment income - - - - - (0.09)
-------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (2.16) (1.74) (1.68) (1.58) (1.61) (1.57)
-------------------------------------------------------------------------------------------------------------------------
Net increase in net asset value
resulting from repurchase of
common stock - - - - 0.01 0.14
-------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 15.15 $ 16.43 $ 15.92 $ 14.14 $ 14.16 $ 14.42
-------------------------------------------------------------------------------------------------------------------------
MARKET VALUE,
END OF PERIOD $ 17.31 $ 18.31 $ 17.07 $ 13.87 $ 12.98 $ 12.63
-------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 5.52% 18.68% 36.52% 19.38% 15.80% 24.55%
-------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $294,530 $319,359 $309,516 $274,968 $275,205 $281,955
-------------------------------------------------------------------------------------------------------------------------
Expenses to average net assets 1.43%* 1.40% 1.43% 1.43% 1.41% 1.39%
-------------------------------------------------------------------------------------------------------------------------
Net investment income to
average net assets 5.78%* 6.18% 6.66% 7.23% 8.46% 10.12%
-------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 86% 140% 53% 57% 51% 43%
--------------------------------------------------------------------------------
24
GLOBAL HIGH INCOME DOLLAR FUND INC.
FINANCIAL HIGHLIGHTS
* Annualized.
1 Total investment return is calculated assuming a $10,000 purchase of common
stock at the current market price on the first day of each period reported
and a sale at the current market price on the last day of each period
reported, and assuming reinvestment of dividends and other distributions at
prices obtained under the Fund's Dividend Reinvestment Plan. Total
investment return does not reflect brokerage commissions and has not been
annualized for the period less than one year. Returns do not reflect the
deduction of taxes that a shareholder would pay on Fund
dividends/distributions or a sale of Fund shares.
2 The actual sources of the Fund's fiscal year 2005 dividends/distributions may
be net investment income, net realized capital gains, return of capital or a
combination of the foregoing and may be subject to retroactive
recharacterization at the end of the Fund's fiscal year based on tax
regulations. Shareholders will be informed of the tax characteristics of
dividends/distributions after the close of the 2005 fiscal year.
+ As required, effective as of November 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year
ended October 31, 2002 was to decrease net investment income per share by
$0.02, increase net realized and unrealized gains from investment activities
per share by $0.02, and decrease the ratio of net investment income to
average net assets from 7.35% to 7.23%. Per share ratios and supplemental
data for years prior to November 1, 2001 have not been restated to reflect
this change in presentation.
--------------------------------------------------------------------------------
25
GLOBAL HIGH INCOME DOLLAR FUND INC.
GENERAL INFORMATION (UNAUDITED)
THE FUND
Global High Income Dollar Fund Inc. (the "Fund") is a non-diversified,
closed-end management investment company whose shares trade on the New York
Stock Exchange ("NYSE"). The Fund's primary investment objective is to achieve a
high level of current income. As a secondary objective, the Fund seeks capital
appreciation to the extent consistent with its primary objective. The Fund's
investment advisor and administrator is UBS Global Asset Management (US) Inc.
("UBS Global AM"), an indirect wholly owned asset management subsidiary of UBS
AG, which had over $50.7 billion in assets under management as of March 31,
2005.
SHAREHOLDER INFORMATION
The Fund's NYSE trading symbol is "GHI." Comparative net asset value and market
price information about the Fund is published weekly in The Wall Street Journal,
The New York Times and Barron's, as well as in numerous other publications.
An annual meeting of shareholders of the Fund was held on February 17, 2005. At
the meeting, Margo N. Alexander, Richard Q. Armstrong, David J. Beaubien,
Richard R. Burt, Meyer Feldberg, Carl W. Schafer, and William D. White were
elected to serve as directors until the next annual meeting of shareholders, or
until their successors are elected and qualified or until they resign or are
otherwise removed. The shares were voted as indicated below:
SHARES
SHARES WITHHOLD
TO VOTE FOR OR AGAINST THE ELECTION OF: VOTED FOR AUTHORITY
--------------------------------------------------------------------------------
Margo N. Alexander 18,198,404.809 166,962.261
--------------------------------------------------------------------------------
Richard Q. Armstrong 18,199,425.809 165,941.261
--------------------------------------------------------------------------------
David J. Beaubien 18,196,028.809 169,338.261
--------------------------------------------------------------------------------
Richard R. Burt 18,179,150.809 186,216.261
--------------------------------------------------------------------------------
Meyer Feldberg 18,202,866.809 162,500.261
--------------------------------------------------------------------------------
Carl W. Schafer 18,174,645.809 190,721.261
--------------------------------------------------------------------------------
William D. White 18,194,455.809 170,911.261
--------------------------------------------------------------------------------
To the best of the Fund's knowledge, there were no "broker non-votes." (Broker
non-votes are shares held in street name for which the broker indicates that
instructions have not been received from the beneficial owners or other
persons entitled to vote and for which the broker does not have discretionary
voting authority.)
QUARTERLY FORM N-Q PORTFOLIO SCHEDULE
The Fund will file its complete schedule of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarter of
each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's
Web site at http://www.sec.gov. The Fund's Forms N-Q may be reviewed and copied
at the
--------------------------------------------------------------------------------
26
GLOBAL HIGH INCOME DOLLAR FUND INC.
GENERAL INFORMATION (UNAUDITED)
SEC's Public Reference Room in Washington, D.C. Information on the operation of
the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
Additionally, you may obtain copies of Forms N-Q from the Fund upon request by
calling 1-800-647-1568.
PROXY VOTING POLICIES AND PROCEDURES AND RECORD
You may obtain a description of the Fund's proxy voting policies and procedures
(and information regarding how the Fund voted any proxies related to portfolio
securities during the 12-month period ended June 30, 2004), without charge, upon
request by contacting the Fund directly at 1-800-647-1568, online on the Fund's
Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's
Web site (http://www.sec.gov).
DIVIDEND REINVESTMENT PLAN
The Fund's Board has established a Dividend Reinvestment Plan (the "Plan") under
which all shareholders whose shares are registered in their own names, or in the
name of UBS Financial Services Inc. or its nominee, will have all dividends and
other distributions on their shares of common stock automatically reinvested in
additional shares, unless such shareholders elect to receive cash. Shareholders
who elect to hold their shares in the name of another broker or nominee should
contact such broker or nominee to determine whether, or how, they may
participate in the Plan. The ability of such shareholders to participate in the
Plan may change if their shares are transferred into the name of another broker
or nominee.
A shareholder may elect not to participate in the Plan or may terminate
participation in the Plan at any time without penalty, and shareholders who have
previously terminated participation in the Plan may rejoin it at any time.
Changes in elections must be made in writing to the Fund's transfer agent and
should include the shareholder's name and address as they appear on that share
certificate or in the transfer agent's records. An election to terminate
participation in the Plan, until such election is changed, will be deemed an
election by a shareholder to take all subsequent distributions in cash. An
election will be effective only for distributions declared and having a record
date at least ten days after the date on which the election is received.
Additional shares of common stock acquired under the Plan will be purchased in
the open market, on the NYSE or otherwise, at prices that may be higher or lower
than the net asset value per share at the time of the purchase. Investors
should consider whether continued participation in the dividend reinvestment
plan is appropriate for them when the Fund's market price exceeds its net asset
value; a portion of a dividend may represent a return of capital, which would be
reinvested in the Fund at a premium to net asset value. The number of shares of
common stock purchased with each dividend will be equal to the result obtained
by dividing the amount of
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27
GLOBAL HIGH INCOME DOLLAR FUND INC.
GENERAL INFORMATION (UNAUDITED)
the dividend payable to a particular shareholder by the average price per share
(including applicable brokerage commissions) that the transfer agent was able to
obtain in the open market. The Fund will not issue any new shares in connection
with the Plan. There currently is no charge to participants for reinvesting
dividends or other distributions. The transfer agent's fees for handling the
reinvestment of distributions are paid by the Fund. However, each participant
pays a pro rata share of brokerage commissions incurred with respect to the
transfer agent's open market purchases of common stock in connection with the
reinvestment of distributions. The automatic reinvestment of dividends and
other distributions in shares of common stock does not relieve participants of
any income tax that may be payable on such distributions.
Experience under the Plan may indicate that changes are desirable. Accordingly,
the Fund reserves the right to amend or terminate the Plan with respect to any
dividend or other distribution if notice of the change is sent to Plan
participants at least 30 days before the record date for such distribution. The
Plan also may be amended or terminated by the transfer agent by at least 30
days' written notice to all Plan participants. Additional information regarding
the Plan may be obtained from, and all correspondence concerning the Plan should
be directed to, the transfer agent at PFPC Inc., P.O. Box 43027, Providence,
Rhode Island 02940-3027. For further information regarding the Plan, you may
also contact the transfer agent directly at 1-800-331-1710.
DISTRIBUTION POLICY
The Fund's Board adopted a managed distribution policy in December 1999.
Pursuant to the policy as in effect from December 1999 through early May 2005,
the Fund made regular monthly distributions at an annualized rate equal to 11%
of the Fund's net asset value, as determined as of the last trading day during
the first week of that month (usually a Friday, unless the NYSE is closed that
Friday). The Board approved reducing the annualized rate for distributions
pursuant to the policy from 11% to 9% effective beginning with the June 2005
monthly distribution. Prior to December 20, 1999, the Fund's distributions
varied based on the Fund's net investment income and realized capital gains or
losses. The Fund's Board may change or terminate the managed distribution policy
at any time; any such change or termination may have adverse effect on the
market price for the Fund's shares.
To the extent that the Fund's taxable income in any fiscal year exceeds the
aggregate amount distributed based on a fixed percentage of its net asset value,
the Fund would make an additional distribution in the amount of that excess near
the end of the fiscal year. To the extent that the aggregate amount distributed
by the Fund (based on a fixed percentage of its net asset value) exceeds its
current and accumulated earnings and profits, the amount of that excess would
constitute a return of capital or net realized capital gains for tax purposes.
--------------------------------------------------------------------------------
28
GLOBAL HIGH INCOME DOLLAR FUND INC.
GENERAL INFORMATION (UNAUDITED)
Monthly distributions based on a fixed percentage of the Fund's net asset value
may require the Fund to make multiple distributions of long-term capital gains
during a single fiscal year. The Fund has received exemptive relief from the
Securities and Exchange Commission that enables it to do so. The Fund's Board
will reassess the annualized percentage of net assets at which the Fund's
monthly distributions will be made no less frequently than annually.
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29
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32
DIRECTORS
Richard Q. Armstrong
Chairman
Margo N. Alexander
David J. Beaublen
Richard R. Burt
Meyer Feldberg
Carl W. Schafer
William D. White
PRINCIPAL OFFICERS
W. Douglas Beck John Penicook
President Vice President
Mark F. Kemper Uwe Schillhorn
Vice President and Secretary Vice President
Thomas Disbrow
Vice President and Treasurer
INVESTMENT ADVISOR AND ADMINISTRATOR
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, New York 10019-6114
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that from time to time the Fund may purchase shares of its
common stock in the open market at market prices.
This report is sent to the shareholders of the Fund for their information. It 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 this report.
The financial information included herein is taken from the records of the Fund
without examination by independent registered public accountants who do not
express an opinion thereon.
(C) 2005 UBS Global Asset Management (US) Inc.
All rights reserved.
---------------
Presorted
[LOGO OF UBS] UBS Standard
US Postage
PAID
Smithtown, NY
Permit 700
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UBS GLOBAL ASSET MANAGEMENT (US) INC.
51 West 52nd Street
New York, New York 10019-6114
ITEM 2. CODE OF ETHICS.
-----------------------
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
-----------------------------------------
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
-----------------------------------------------
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
----------------------------------------------
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 6. SCHEDULE OF INVESTMENTS.
--------------------------------
Included as part of the report to shareholders filed under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
-------------------------------------------------------------------------
MANAGEMENT INVESTMENT COMPANIES.
--------------------------------
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
-------------------------------------------------------------------------
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
--------------------------------------------------------------------------
COMPANY AND AFFILIATED PURCHASERS.
----------------------------------
There were no purchases made by or on behalf of the registrant or any
"affiliated purchaser," as defined in Rule 10b-18(a)(3) under the Securities
Exchange Act of 1934, as amended, of shares of the registrant's equity
securities made in the period covered by this report.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
-------------------------------------------------------------
The registrant's Board has established a Nominating and Corporate Governance
Committee. The Nominating and Corporate Governance Committee will consider
nominees recommended by shareholders if a vacancy occurs among those board
members who are not "interested persons" as defined in Section 2(a)(19) of the
Investment Company Act of 1940, as amended. In order to recommend a nominee, a
shareholder should send a letter to the chairperson of the Nominating and
Corporate Governance Committee, Mr. Richard Burt, care of the Secretary of the
registrant at UBS Global Asset Management (US) Inc., 51 West 52nd Street, New
York, New York 10019-6114, and indicate on the envelope "Nominating and
Corporate Governance Committee." The shareholder's letter should state the
nominee's name and should include the nominee's resume or curriculum vitae, and
must be accompanied by a written consent of the individual to stand for election
if nominated for the Board and to serve if elected by shareholders.
ITEM 11. CONTROLS AND PROCEDURES.
---------------------------------
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act
of 1940, as amended) are effective based on their evaluation of these
controls and procedures as of a date within 90 days of the filing date
of this document.
(b) The registrant's principal executive officer and principal financial
officer are aware of no changes in the registrant's internal control
over financial reporting that occurred during the registrant's most
recent fiscal half-year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
------------------
(a) (1) Code of Ethics - Form N-CSR disclosure requirement not applicable to
this filing of a semi-annual report.
(a) (2) Certifications of principal executive officer and principal financial
officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is
attached hereto as Exhibit EX-99.CERT.
(a) (3) Written solicitation to purchase securities under Rule 23c-1 under
the Investment Company Act of 1940 sent or given during the period
covered by the report by or on behalf of the registrant to 10 or more
persons - The registrant has not engaged in such a solicitation during
the period covered by this report.
(b) Certifications of principal executive officer and principal financial
officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is
attached hereto as Exhibit EX-99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Global High Income Dollar Fund Inc.
By: /s/ W. Douglas Beck
-------------------
W. Douglas Beck
President
Date: July 11, 2005
-------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ W. Douglas Beck
-------------------
W. Douglas Beck
President
Date: July 11, 2005
-------------
By: /s/ Thomas Disbrow
------------------
Thomas Disbrow
Treasurer
Date: July 11, 2005
-------------