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Global High Income Dollar Fund Inc. -- Quarterly Commentary.

NEW YORK--(BUSINESS WIRE)--Nov. 22, 1999--

Global High Income Dollar Fund Inc. (NYSE NYSE

See: New York Stock Exchange
: GHI GHI Group Health Incorporated (HMO)
GHI German Historical Institute (Washington, DC)
GHI Ghost Hunters International
GHI Geohazards International
GHI Gustav Heinemann-Initiative
) is a non-diversified, closed-end management investment company seeking high current income and secondarily capital appreciation through investments primarily in securities of emerging market debt issuers.


Emerging market debt--as measured by the JP Morgan Emerging Market Bond Index Plus (EMBI EMBI Emerging Markets Bond Index
EMBI Emergency Management for Business & Industry
+)--returned 1.2% over the third quarter, outperforming developed market debt which gained 0.7% as measured by the SSB SSB Statistisk Sentralbyrå (Statistics Norway)
SSB Super Smash Bros (video game)
SSB Space Studies Board
SSB Single Side Band
SSB Single Stranded DNA-Binding Protein
SSB Salomon Smith Barney
 World Government Bond Index hedged into U.S. dollars. The EMBI+ returned 3.9% in October versus 0.2% for the SSB Index. The relative outperformance of the EMBI+ was broad-based, with September and October being particularly strong. The lower-rated Latin bond markets (for example, Argentina, Brazil, Colombia and Venezuela) led the rally. This rally seems predicated on the belief that the ongoing world recovery will engender improved exports and fiscal results for Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , yet low inflation worldwide will not require enough monetary tightening to draw financing away from Latin American markets.

Portfolio Positioning

Year to date as of October 30, 1999, the Fund returned 11.4% based on net asset value (16.8% based on market price) compared to the EMBI+ and Lipper Emerging Market Debt Median returns of 15.6% and 13.4%, respectively. The Fund's relative underperformance to the EMBI+ was primarily due to its underweight Underweight

An situation where a portfolio does not hold a sufficient amount of securities to satisfy the accepted benchmark of the portfolio's asset allocation strategy.

 position in Russian debt (about 2.6% versus 6.8%), which returned 91.4% year to date through October. (Note: the Fund has maintained an underweight position in Russian debt since inception.)

During the last four months, we further diversified the Fund's holdings by investing in new bonds issued by the Republics of El Salvador El Salvador (ĕl sälväthōr`), officially Republic of El Salvador, republic (2005 est. pop. 6,705,000), 8,260 sq mi (21,393 sq km), Central America. , Trinidad and Tobago Trinidad and Tobago (trĭn`ĭdăd, təbā`gō), officially Republic of Trinidad and Tobago, republic (2005 est. pop. 1,088,000), 1,980 sq mi (5,129 sq km), West Indies. The capital is Port of Spain.  and Turkey--each of which was priced attractively and traded up after pricing. We remained generally fully invested, and held a small cash position only to facilitate share repurchases under the Fund's buy-back program.


Higher world growth and rising commodity prices (especially oil) should positively impact the balance of payments and fiscal revenues for most emerging market countries. However, a number of key issues remain for the sector:

-- The low political ratings of Brazilian President Cardoso and its

impact on his ability to continue to legislate social security

and fiscal reforms.

-- The Russian government's ability to collect enough taxes to pay

its foreign debt and its willingness to do so.

-- Uncertainty regarding Argentina's ability to continue to roll

over large amounts of external debt in light of export

competitiveness and the economy's inability to correct the

resulting imbalance through currency devaluation Currency devaluation

A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold.
 because of its

fixed exchange rate.

Presently favorable macro-economic influences are driving debt prices in the sector.

This commentary reflects our views at the time of its writing. These views may change in response to changing circumstances.
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Publication:Business Wire
Geographic Code:1USA
Date:Nov 23, 1999
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