MERRILL
LYNCH
PACIFIC
FUND, INC.
Quarterly Report September 30, 1994
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Merrill Lynch
Pacific Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH PACIFIC FUND, INC.
DEAR SHAREHOLDER
During the quarter ended September 30, 1994, the Japanese stock
market, as measured by the Nikkei 225 Stock Index in local currency
terms, declined 5.23%, while other Pacific Basin stock markets
appreciated. Among the smaller Pacific stock markets, in local
currency terms, Thailand was the best performer (+17%) and Australia
the worst (+2%). However, all of the smaller Pacific Basin stock
markets are down year-to-date, with Hong Kong as the worst performer
with a 20% decline, while the Nikkei 225 is still up over 12%.
<PAGE>
The relatively poor performance of the Japanese stock market for the
quarter might seem somewhat surprising, given the increasing signs
of a pickup in economic activity. The unusually warm summer weather
and income tax cuts stimulated personal consumption, and employment
data have confirmed a bottoming in the labor market. Fixed
investments for public, residential and business use were all
positive through late summer. At the same time, inflation was
virtually nonexistent. Nevertheless, investor response to the
positive economic developments in Japan has been lackluster. Even
large upward revisions in profit expectations--such as those
experienced by some of our key Japanese holdings--have been met with
a low level of investor enthusiasm, while a new supply of equity
financing has further dampened sentiment. Although it is positive
that the immediate crisis in US/Japanese trade relations has been
averted, we believe that the present trade agreement will not have
any discernible impact on either the Japanese stock market or
currency, as it appears to us at this time. Despite the resolution
of some trade issues, many key areas of disagreement remain, which
suggests that trade frictions between the two countries will persist
for some time to come.
Greater Portfolio Concentration
During the September quarter, Merrill Lynch Pacific Fund Inc.'s
investments performed approximately in line with their respective
markets. However, there were opportunities for us to eliminate some
smaller investments and redeploy these assets by gradually adding to
some core portfolio holdings during periods of relative
underperformance. As we noted in our last report to shareholders, we
have been refocusing our efforts on stock selection. As a result,
the portfolio is becoming more concentrated, with fewer investments
and larger percentage commitments to our major holdings than we have
had in the recent past. For example, as of September month-end, the
portfolio's ten largest positions made up approximately 36% of net
assets, up from approximately 31% at the end of the prior quarter.
During the September quarter we increased our investments in Murata
Manufacturing Co., Ltd., Ito-Yokado Co., Ltd., Mitsubishi Heavy
Industries, Ltd., Toyo Seikan Kaisha, Ltd., Canon, Inc., and Suzuki
Motor Corp. Our largest industry commitment remains non-life
insurance companies in Japan, followed by Japanese electrical
equipment manufacturers and Hong Kong utility companies.
Although the Fund's performance has not improved relative to the
unmanaged Market-Weighted Index (see the "Recent Performance
Results" table on page 6 of this report to shareholders), the
business results of most of the companies represented in the
portfolio continued to exceed our expectations, which were already
greater than consensus estimates. Based upon these business results,
we are positive on the prospects for long-term share price
appreciation of these holdings, and expect to continue to use
periods of stock market weakness to our benefit and purchase more
shares of the attractive values we already own.
<PAGE>
For example, the container manufacturer Toyo Seikan Kaisha, Ltd.,
one of the Fund's largest holdings, recently reported business
results that are so good that the company appears immune to the
recent economic malaise plaguing Japan. For the first half of its
fiscal year (the six months ended September 30), Toyo Seikan's
profits have been reported to be up 36% from management's original
forecast and fully 50% higher than the same period one year ago.
Based upon our estimates of the company's depreciation and capital
expenditures, Toyo Seikan's free cash flow appears likely to
increase persistently to very significant levels. This is the result
of the abatement of a very significant capital expenditure program.
Over the past several years, we have maintained that Toyo Seikan's
decrease in net income (although a much more moderate decrease than
that experienced by Japanese companies in general) was primarily the
result of a conscious decision by the company to sacrifice current
"accounting" net income for the future free cash flow that would
accrue from its significant capital expenditure program.
In our opinion, Toyo Seikan is one of the relatively few Japanese
companies which acts for the economic benefit of its shareholders.
We believe that the company's latest business results reflect this
emphasis on enhancing shareholder value. Other companies represented
in the portfolio also fall into this category, such as Ito-Yokado
Co., Ltd. Like Toyo Seikan, Ito-Yokado is much more profitable than
the typical Japanese company, and its shares are much more
reasonably valued. Perhaps it is not a coincidence that the founding
families of these two companies are still involved with their
businesses and are large shareholders themselves, as is the case
with Murata Manufacturing Co., Ltd., another of our top-ten
holdings. We also believe that Mitsubishi Heavy Industries, Ltd. and
Suzuki Motor Corp. have attractive financial characteristics and
managements that make decisions that benefit shareholders. Shares of
some other companies in which we have invested, such as Chudenko
Corp., are unfortunately too illiquid for us to expand our holdings
in them significantly, despite their attractive valuations and
strong business results.
Other Investment Activities
Outside of Japan, we have increased our exposure to China Light &
Power Co., Ltd., making it once again one of our largest positions.
China Light & Power's shares are more than 30% lower in price than
their 1993 high. However, the company's profitability remains
excellent and its management is strong. Therefore, we utilized this
period of share price weakness to increase our investment at
attractive valuation levels. Furthermore, the company is planning to
expand its operations not only to The People's Republic of China,
where there remains enormous demand for power, but also throughout
the rest of Asia. We also believe that increasing demand from China
will be positive for Hong Kong Telecommunications, Ltd., and
accordingly we increased our investment in the company.
<PAGE>
In Conclusion
We are pleased to report that Merrill Lynch Pacific Fund, Inc.'s
Class A Shares earned a place on this year's Forbes Honor Roll of
Mutual Funds, as they also did in 1993. "Short bursts of glory won't
get a fund on the Forbes Honor Roll," the magazine states in its
August 29 issue. "Consistency of performance and toughness in tough
times, will." To make the Honor Roll, funds had to meet three
requirements: first, a minimum return of 13%, compounded annually;
second, after measuring performance across three complete up-and-
down market cycles, at least a B grade in bear markets; and third,
at least six consecutive years under the same fund manager or
managers to establish continuity of management.
As reported by Forbes, the Fund's Class A Shares have averaged gains
of 18.9% a year since June 30, 1983. The magazine gave Class A
Shares a rating of A in up markets and B in down markets. An
investment of $10,000 in Class A Shares 11 years ago would be worth
$52,423, the magazine reported. (Results do not reflect the
deduction of sales charges, and would be lower if sales charges were
included. Past performance is no guarantee of future results.)
We thank you for your investment in Merrill Lynch Pacific Fund,
Inc., and we look forward to continuing to serve your financial
needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Stephen I. Silverman)
Stephen I. Silverman
Vice President and Portfolio Manager
October 24, 1994
<PAGE>
PORTFOLIO INFORMATION
For the Quarter Ended September 30, 1994
Percent of
Ten Largest Equity Holdings Net Assets
Murata Manufacturing Co., Ltd. 4.3%
Ito-Yokado Co., Ltd. 4.2
Mitsubishi Heavy Industries, Ltd. 4.0
China Light & Power Co., Ltd. 3.9
Toyo Seikan Kaisha, Ltd. 3.6
Canon, Inc. 3.6
Suzuki Motor Corp. 3.3
Hitachi, Ltd. 3.1
Dai-Tokyo Fire & Marine Insurance Co., Ltd. 3.1
Nichido Fire & Marine Insurance Co., Ltd. 3.0
Additions
Malaysian International Shipping BHD
Pakistan Telecommunications
SCICI, Ltd.
Swire Pacific Ltd. 'A'
Deletions
Aokam Perdana BHD ("A")
Aokam Perdana BHD (Ordinary)
Bangkok Bank Public Co., Ltd.
China Steel Corp. (ADR)
City Development
City Development (Rights)
Development Bank of Singapore, Ltd.--Foreign Registered
First Capital Corp. Ltd.
Fuji Photo Film Co., Ltd.
Goodman Fielder Ltd.
Great Eastern Shipping (New)
Hong Kong Aircraft Engineering Co. Ltd.
Kia Motors Corp. (GDS)
PT Charoen Pokphand Indonesian
Paul Y-ITC Construction Holdings, Inc.
Sanki Engineering Co., Ltd.
Singapore Airlines, Ltd.--Foreign Registered
Sungei Way Holdings BHD
Sungei Way Holdings BHD (Rights)
Sungei Way Holdings BHD TSR (Rights)
Toyota Motor Corp.
<PAGE>
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Donald C. Burke, Vice President
Stephen I. Silverman, Vice President and
Portfolio Manager
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
PERFORMANCE DATA
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
Class A and Class B Shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
"Results of a $1,000 Investment Since Inception" chart measures
performance since inception and may not reflect results of
investments made at any other time.
Results of a $1,000 Investment Since Inception--Class A Shares
GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX,
GRAPHIC AND IMAGE MATERIAL, Item 1.
<PAGE>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/94 +8.32% +1.28%
Five Years Ended 9/30/94 +6.31 +4.89
Ten Years Ended 9/30/94 +20.30 +19.50
[FN]
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/94 +7.25% +3.25%
Five Years Ended 9/30/94 +5.24 +5.24
Inception (10/21/88) through 9/30/94 +9.51 +9.51
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
PERFORMANCE DATA (continued)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
9/23/76--12/31/76 $ 9.30 $ 9.81 -- -- + 5.48%
1977 9.81 9.20 -- $0.050 - 5.73
1978 9.20 14.48 $ 0.070 0.020 +58.87
1979 14.48 8.96 3.340 0.120 -23.40
1980 8.96 12.11 -- 0.220 +38.49
1981 12.11 12.78 1.460 0.230 +22.22
1982 12.78 12.07 0.420 0.320 + 0.46
1983 12.07 16.04 0.180 0.290 +38.54
1984 16.04 15.43 0.950 0.090 + 2.92
1985 15.43 19.59 1.380 0.160 +40.96
1986 19.59 34.32 0.190 0.110 +77.78
1987 34.32 16.15 22.154 0.183 +10.77
1988 16.15 19.11 2.064 0.196 +34.38
1989 19.11 20.65 1.042 0.061 +14.49
1990 20.65 16.52 1.668 0.766 - 8.39
1991 16.52 18.34 0.521 0.433 +17.04
1992 18.34 15.80 0.221 0.741 - 8.75
1993 15.80 21.21 -- 0.027 +34.41
1/1/94--9/30/94 21.21 22.60 -- -- + 6.55
------- ------
Total $35.660 Total $4.017
Cumulative total return as of 9/30/94: +1,655.64%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
include sales charge; results would be lower if sales charge was
included.
</TABLE>
<PAGE>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/88--12/31/88 $17.93 $19.09 $1.034 $0.171 +13.37%
1989 19.09 20.49 1.042 -- +13.39
1990 20.49 16.30 1.668 0.653 - 9.29
1991 16.30 18.01 0.521 0.322 +15.87
1992 18.01 15.34 0.221 0.726 - 9.72
1993 15.34 20.41 -- -- +33.05
1/1/94--9/30/94 20.41 21.59 -- -- + 5.78
------ ------
Total $4.486 Total $1.872
Cumulative total return as of 9/30/94: +71.66%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
PERFORMANCE DATA (concluded)
<TABLE>
Recent Performance Results
<CAPTION>
Market Performance Market Capitalization
In Local Currency/In US Dollars (as of 6/30/94)
3 Month 12 Month In US Dollars % of Total
% Change % Change (Billions) (100.0%)
<C> <C> <C> <C>
ML Pacific Fund, Inc. Class A Shares* -2.96% +8.19%
ML Pacific Fund, Inc. Class B Shares* -3.18 +7.25
ML Pacific Fund, Inc. Class A Shares--Total Investment Return* -2.96 +8.32(1)
ML Pacific Fund, Inc. Class B Shares--Total Investment Return* -3.18 +7.25
Market-Weighted Index** -3.71(2) +5.83(3)
Japan** - 5.76/- 6.00 - 3.04/+ 3.93 $3,876 83.5%
Australia** + 1.99/+ 3.35 + 3.27/+18.47 203 4.4
Singapore** + 2.63/+ 5.51 + 7.13/+14.41 127 2.7
Malaysia** +11.68/+13.43 +32.32/+31.41 175 3.8
Hong Kong** + 8.71/+ 8.74 +24.04/+24.15 262 5.6
<FN>
(1)Percent change includes reinvestment of $0.027 per share ordinary
income dividends.
(2)6/30/94 market weights used in this computation. The Market-
Weighted Index return and individual country returns do not include
dividends.
(3)9/30/93 market weights used in this computation. The Market-
Weighted Index return and individual country returns do not include
dividends.
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
**Unmanaged. The Market-Weighted Index weights the US dollar-
adjusted Pacific Basin stock market returns by the relative market
capitalization of each individual country on the appropriate date.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Held/ Percent of
Industry Face Amount Investments Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Japenese Securities
Automobile 4,090,000 Suzuki Motor Corp. $ 42,648,599 $ 49,676,113 3.3%
Beverage 363,000 Chukyo Coca-Cola Bottling Co., Ltd. 5,223,326 4,408,907 0.3
421,000 Hokkaido Coca-Cola Bottling Co., Ltd. 6,354,142 6,775,202 0.5
386,000 Kinki Coca-Cola Bottling Co., Ltd. 7,430,096 5,977,530 0.4
433,000 Mikuni Coca-Cola Bottling Co., Ltd. 7,892,009 6,310,931 0.4
428,000 Sanyo Coca-Cola Bottling Co., Ltd. 7,040,767 6,497,976 0.4
------------ ------------ ------
33,940,340 29,970,546 2.0
Capital Goods 7,850,000 Mitsubishi Heavy Industries, Ltd. 54,754,678 61,179,150 4.0
720 Mitsubishi Heavy Industries, Ltd., #3
US$ (Warrants) (a) 588,000 400,500 0.0
------------ ------------ ------
55,342,678 61,579,650 4.0
Chemicals 1,400,000 Shin-Etsu Chemical Co., Ltd. 24,090,347 28,765,182 1.9
Consumer 1,700,000 Matsushita Electric Industrial Co., Ltd. 23,262,704 27,186,235 1.8
Electronics Yen409,000,000 Matsushita Electric Works, Ltd.--C.E.W.
#8, 2.70% due 5/31/2002 4,543,869 4,665,415 0.3
561,000 Sony Corp. 30,521,041 32,706,073 2.1
------------ ------------ ------
58,327,614 64,557,723 4.2
Containers 1,808,000 Toyo Seikan Kaisha, Ltd. 31,800,989 56,362,753 3.6
Electric 707,000 Chudenko Corp. 20,883,499 27,621,660 1.8
Construction 800,000 Taihei Dengyo Kaisha, Ltd. 19,865,480 24,615,385 1.6
------------ ------------ ------
40,748,979 52,237,045 3.4
<PAGE>
Electric Equipment 4,950,000 Hitachi, Ltd. 47,713,215 47,896,761 3.1
1,677,900 Murata Manufacturing Co., Ltd. 53,781,498 65,044,099 4.3
923,000 The Nippon Signal Co., Ltd. 13,935,321 10,930,263 0.7
520,000 Rohm Co., Ltd. 17,691,365 22,736,842 1.5
2,045,000 Sumitomo Electric Industries, Ltd. 23,549,161 30,219,636 2.0
169 Sumitomo Electric Industries, Ltd., #1 Yen
(Warrants) (a) 185,351 307,895 0.0
------------ ------------ ------
156,855,911 177,135,496 11.6
Iron & Steel 475,000 Maruichi Steel Tube, Ltd. 6,023,843 9,278,846 0.6
Office Equipment 3,150,000 Canon, Inc. 46,249,334 55,475,708 3.6
14,250 Canon, Inc., #2 DM (Warrants) (a) 1,741,131 1,918,092 0.1
2,250 Canon, Inc., #4 US$ (Warrants) (a) 2,434,375 2,587,500 0.2
------------ ------------ ------
50,424,840 59,981,300 3.9
Pharmaceuticals 1,164,000 Sankyo Co., Ltd. 28,615,316 29,217,814 1.9
672,000 Taisho Pharmaceutical Co., Ltd. 9,783,498 12,855,061 0.8
------------ ------------ ------
38,398,814 42,072,875 2.7
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Held/ Percent of
Industry Face Amount Investments Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Japanese Securities (concluded)
Property & Casualty 6,374,000 Dai-Tokyo Fire & Marine Insurance Co.,
Insurance Ltd. $ 37,361,092 $ 47,224,372 3.1%
4,492,000 Fuji Fire & Marine Insurance Co., Ltd. 16,261,457 29,779,960 2.0
5,265,000 Koa Fire & Marine Insurance Co., Ltd. 31,772,154 35,650,658 2.3
5,348,000 Nichido Fire & Marine Insurance Co., Ltd. 27,011,948 46,551,417 3.0
2,680,000 Sumitomo Marine & Fire Insurance Co., Ltd. 25,396,350 24,629,960 1.6
3,393,000 Tokio Marine & Fire Insurance Co., Ltd. 32,817,499 40,523,684 2.7
------------ ------------ ------
170,620,500 224,360,051 14.7
Retailing 1,207,000 Ito-Yokado Co., Ltd. 51,973,327 64,625,810 4.2
364,000 Sangetsu Co., Ltd. 8,382,717 12,305,263 0.8
389,400 Senshukai Co., Ltd. 6,286,430 12,769,798 0.8
246,000 Shimachu Co., Ltd. 6,415,141 8,863,968 0.6
------------ ------------ ------
73,057,615 98,564,839 6.4
<PAGE>
Transportation 2,444,000 Nippon Express Co., Ltd. 24,955,299 25,973,684 1.7
Total Investments in Japan 807,236,368 980,516,103 64.0
Austrian Securities
Diversified 3,900,000 BTR Nylex Ltd. 8,805,671 7,388,160 0.4
Food & Beverage 8,090,789 Burns Philp & Co., Ltd. 22,551,298 20,655,784 1.4
3,832,532 Coca-Cola Amatil, Ltd. 14,756,558 23,397,608 1.5
------------ ------------ ------
37,307,856 44,053,392 2.9
Paper & Packaging 2,589,618 AMCOR Ltd. 18,728,076 17,016,898 1.1
Property 2,495,328 Lend Lease Corp. 31,557,058 31,391,226 2.1
$1,500,000 Lend Lease Finance International, 4.75% due
6/01/2003 1,736,250 1,635,000 0.1
------------ ------------ ------
33,293,308 33,026,226 2.2
Total Investments in Australia 98,134,911 101,484,676 6.6
Hong Kong Securities
Diversified 4,110,500 Swire Pacific Ltd. 'A' 34,545,087 32,185,183 2.1
Property 225,000 Hang Lung Development Co., Ltd. 345,537 414,957 0.0
Utilities 11,667,800 China Light & Power Co., Ltd. 33,711,918 59,345,457 3.9
13,133,200 Hong Kong & China Gas Co., Ltd. 23,440,091 24,645,890 1.6
868,600 Hong Kong & China Gas Co., Ltd.
(Warrants) (a) 0 347,364 0.0
15,741,800 Hong Kong Telecommunications, Ltd. 29,991,994 31,476,673 2.1
670,500 Hong Kong Telecommunications, Ltd.
(ADR) (b) 4,896,660 13,493,812 0.9
------------ ------------ ------
92,040,663 129,309,196 8.5
Total Investments in Hong Kong 126,931,287 161,909,336 10.6
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Held/ Percent of
Industry Face Amount Investments Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Indian Securities
Banking 9,800 SCICI, Ltd. $ 44,127 $ 38,675 0.0%
Broadcast/Media 620,000 Shivalik Projects Ltd. 3,557,823 3,558,957 0.2
Shipping 262,000 Great Eastern Shipping 1,061,593 643,355 0.1
Total Investments in India 4,663,543 4,240,987 0.3
Indonesian Securities
Pharmaceuticals 1,634,000 PT Kalbe Farma 5,525,626 6,383,399 0.4
Total Investments in Indonesia 5,525,626 6,383,399 0.4
Malaysian Securities
Diversified 12,414,000 Sime Darby BHD 35,217,136 35,842,216 2.3
Leisure 1,125,000 Genting BHD 1,759,320 10,247,976 0.7
1,450,000 Resorts World BHD 2,382,084 9,165,041 0.6
------------ ------------ ------
4,141,404 19,413,017 1.3
Transportation 3,603,000 Malaysian International Shipping BHD 12,333,119 12,019,372 0.8
Total Investments in Malaysia 51,691,659 67,274,605 4.4
Pakistan Securities
Utilities 43,298 Pakistan Telecommunications 7,783,681 8,269,918 0.5
<PAGE>
Total Investments in Pakistan 7,783,681 8,269,918 0.5
Singaporean Securities
Electronics 610,000 Creative Technology, Ltd. 7,609,991 10,903,750 0.7
Food 3,600,000 Cerebos Pacific Ltd. 5,153,632 19,554,656 1.3
Transportation 300,000 Singapore Bus Co. Ltd.--Foreign Registered 1,060,285 2,611,336 0.2
Total Investments in Singapore 13,823,908 33,069,742 2.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Percent of
Industry Shares Held Investments Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
South Korean Securities
Textiles 3,080 Taekwang Industries Co. $ 716,353 $ 1,677,896 0.1%
Total Investments in South Korea 716,353 1,677,896 0.1
<CAPTION>
Face Amount
Short Term Securities
<S> <C> <S> <C> <C> <C>
Commercial Paper* $ 20,000,000 Ciesco L.P., 4.90% due 11/04/1994 19,907,444 19,907,444 1.3
23,000,000 du Pont (E.I.) de Nemours & Co., 4.74%
due 10/24/1994 22,930,348 22,930,348 1.5
66,761,000 General Electric Capital Corp., 4.95%
due 10/03/1994 66,742,641 66,742,641 4.4
Total Investments in Short-Term
Securities 109,580,433 109,580,433 7.2
<CAPTION>
Par Premiums
Value Issue Paid
Currency Put Options Purchased
<S> <C> <S> <C> <C> <C>
Yen600,000,000 Japanese Yen Expiring March 1995 at
Yen106.5 16,002,000 3,435,000 0.2
Total Currency Put Options Purchased 16,002,000 3,435,000 0.2
<PAGE>
Total Investments $1,242,089,769 1,477,842,095 96.5
==============
Unrealized Appreciation on Forward Foreign Exchange Contract** 1,641,562 0.1
Other Assets Less Liabilities 52,560,211 3.4
-------------- ------
Net Assets $1,532,043,868 100.0%
============== ======
Net Class A--Based on net assets of $620,815,947 and 27,468,655
Asset shares outstanding $ 22.60
Value: ==============
Class B--Based on net assets of $911,227,921 and 42,210,836
shares outstanding $ 21.59
==============
<FN>
(a)Warrants entitle the Fund to purchase a predetermined
number of shares of Common Stock. The purchase price and
number of shares are subject to adjustment under certain
conditions until the expiration date.
(b)ADR--American Depositary Receipts.
*Commercial Paper is traded on a discount basis; the interest
rates shown are the discount rates paid at the time of
purchase by the Fund.
**Forward foreign exchange contracts as of September 30, 1994 are as
follows:
Foreign Expiration Unrealized
Currency Purchased Date Appreciation
Yen14,493,846,800 December 1994 $ 1,641,562
Total Unrealized Appreciation on Forward
Foreign Exchange Contracts--Net
(US$ Commitment--$145,747,366) $ 1,641,562
===========
</TABLE>
<PAGE>
APPENDIX: GRAPHIC AND IMAGE MATERIAL
ITEM 1:
Results of a $1,000 Investment Since Inception--Class A Shares
(6.5% sales charge--$935.00 net amount invested; assuming
reinvestment of all dividends and capital gains distributions)
A mountain chart depicting the growth of an investment in the
Fund's Class A Shares from $935 on September 23, 1976 to
$16,415.23 on September 30, 1994.
