MERRILL LYNCH
FUND FOR
TOMORROW, INC.
STRATEGIC
Performance
FUND LOGO
Quarterly Report
October 31, 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
Fund For Tomorrow, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MERRILL LYNCH FUND FOR TOMORROW, INC.
Concept Sectors
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 1.
Growth Stock Characteristics
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 2.
DEAR SHAREHOLDER
Concerns of increasing inflationary pressures contin-
ued to prompt volatility in the US stock and bond
markets during the October quarter. In addition, the
weakness of the US dollar in foreign exchange
markets prolonged stock and bond market declines.
Early in the period, the possibility of continued
monetary policy tightening by the Federal Reserve
Board was predominant in the minds of investors.
However, a lower-than-expected rate of growth
reported for the US economy during the second calen-
dar quarter allayed inflationary concerns to some
degree, despite the fifth increase in short-term
interest rates made by the central bank in mid-August.
Inflationary expectations surfaced again with the
announcement of significant upward revisions in
industrial production and capacity utilization for the
May-July period. When the central bank did not raise
short-term interest rates at the late September Federal
Open Market Committee meeting, financial markets rallied
on the expectation that the US economy was not
overheating and therefore significant further mone-
tary policy tightening would not be necessary. Also
encouraging were reports that consumer spending is
increasing at a lower rate than has been the case in
recent economic recoveries. Nevertheless, shortly
after the conclusion of the October quarter, investor
sentiment had again deteriorated. The report of
better-than-expected growth in the gross domestic
product for the three months ended September 30,
combined with evidence of a still-robust manufactur-
ing sector and renewed US dollar weakness, all
rekindled concerns that short-term interest rates
would soon resume their upward trend.
<PAGE>
In the weeks ahead, investors will continue to assess
economic data and inflationary trends in order to
gauge whether further increases in short-term inter-
est rates are imminent. Continued indications of
moderate and sustainable levels of economic growth
would be positive for the US capital markets.
Portfolio Matters
Despite economic uncertainties during the quarter
ended October 31, 1994, equity markets exhibited a
generally positive pattern of activity. Earlier in
the period stock prices were somewhat volatile as
rising interest rates caused concern over the
sustainability of economic growth. Consequently,
many economically sensitive companies saw their shares
weaken even as profits showed strong upward momentum.
Conversely, despite a weak July quarter, the smaller-
capitalized growth sectors of the stock market staged
a strong recovery during the three-month period ended
October 31, 1994. We believe there is a renewed
emphasis on growth stocks which are once again
providing leadership in an otherwise cautious stock
market environment. The divergence in invest-
ment performance during the quarter was clearly
demonstrated by the over 8% advance in the NASDAQ
Industrials Index versus the 3% gain in the Standard &
Poor's 500 Composite. Also, on a global basis, US
stocks generally outpaced foreign equities.
<PAGE>
Similar to the divergence in investment performance
between small- and large-capitalization companies,
there was a significant separation among stock
market sectors as well. The most dramatic example
of outperformance came within the technology sector,
where computer and electronic companies, along
with telecommunication equipment suppliers, showed
substantial price appreciation. We increased our
positions in the computer technology and telecommuni-
cations concepts of Merrill Lynch Fund For Tomorrow, Inc.'s
portfolio. However, another sector of the stock market
that performed well during the quarter was not well-
represented in the Fund's portfolio. This sector,
classified as consumer staples in the S&P 500, consists
of food, household products, tobacco and healthcare.
Except for healthcare, where the Fund has strong
representation, we have not been optimistic about
long-term growth in these areas of the economy.
Nevertheless, a lengthy period of underperformance
in the stock market attracted recent buying
interest. On the negative side of relative performance
during the quarter were cyclical growth, capital
goods, basic industry and financial sectors. In
particular, automobile-related companies, heavy machinery
and chemical industries fared poorly. The Fund's
holdings in these areas, on balance, showed outstanding
earnings gains, but general economic worries held back
share prices which precluded their contributing to
overall investment performance. As mentioned in our
last report to shareholders, we have been and currentlyr
emain committed to these economy-sensitive industries,
because we believe a strong global economy will help
sustain a protracted period of growth for US companies.
Therefore, we believe that a favorable earnings trend
within this segment of the portfolio will lead to higher
stock prices.
Despite the narrowly based advance in the stock
market during the October quarter, Merrill Lynch
Fund For Tomorrow, Inc.'s Class A and B Shares' total
returns exceeded the total return of the unmanaged
S&P 500. We attribute much of this performance to
individual stock selection and at least an interim
confirmation of our strategy of concept investing.
As previously noted, our computer technology
investments are doing exceptionally well, with
price appreciation of 10%-40% in such stocks as
International Business Machines Corp., Apple
Computer, Inc., Sun Microsystems, Inc., and Wonder-
ware Corp. In addition, our smaller emerging growth
holdings showed excellent gains, especially within
the telecommunications, progressive education and
global market expansion concepts.
<PAGE>
During the October quarter, we invested in nine new
stocks, all of which supplemented previously estab-
lished investment concept categories. Within tele-
communications, we added shares of Finland-based
Nokia AB, a world leader in the manufacture of
telecom equipment and cellular telephones. We also
added American Power Conversion Corp., which provides
uninterruptable power systems for the computer
industry. Another company, Corporate Express,
Inc., operates in a retailing format of the future
providing office supplies direct to large businesses.
Comcast UK Cable Partners, Ltd. is an important
cable/telephony operator in the United Kingdom.
Other new holdings include two gaming companies
in Las Vegas, Promus Companies, Inc. and Mirage
Resorts, Inc. Finally, we added to our extended
economic cycles concept with three chemical producers
showing continued earnings momentum, Lyondell
Petrochemical Company, Eastman Chemical Co. and
Imperial Chemical Industries PLC.
Overall, our investment strategy during the October
quarter focused on smaller-capitalization companies
and adjusting the weightings among our 14 investment
concepts according to our current assessment and
future outlook. Activity in these areas led to various
changes within the concept sectors depicted on
page 1, most notably extended economic cycles
and telecommunications. These two sectors had
significant increased weightings, and are expected to
show favorable long-term investment performance.
During the quarter we shifted toward the emerging
growth side of our growth stock continuum. As a
result, 47.3% of the Fund's assets are within the
three segments representing companies we believe
are moving along relatively early phases of their
growth cycle.
In Conclusion
In the months ahead, we expect to continue to
emphasize the smaller-capitalized sector of the stock
market, but we believe individual stock selection will
be among our most important investment criteria.
With the inherent flexibility derived from our con-
cept investment format, we believe Merrill Lynch
Fund For Tomorrow, Inc. is well-positioned given
its long-term growth objectives.
We appreciate your ongoing interest in Merrill Lynch
Fund For Tomorrow, Inc., and we look forward to
assisting you with your financial needs and objectives
in the months and years ahead.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent P. Dileo)
Vincent P. Dileo
Vice President and Portfolio Manager
November 28, 1994
PERFORMANCE DATA
About Fund Performance
Since October 21, 1994, investors have been able
to purchase shares of the Fund through the Merrill
Lynch Select Pricing SM System, which offers four
pricing alternatives:
* Class A Shares incur a maximum initial sales charge
(front-end load) of 5.25% and bear no ongoing distribu-
tion or account maintenance fees. Class A Shares are
available only to eligible investors.
* Class B Shares are subject to a maximum contingent
deferred sales charge of 4.00% if redeemed during
the first year, decreasing 1.00% each year thereafter
to 0.00% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and
an account maintenance fee of 0.25%. These shares
automatically convert to Class D Shares after 8 years.
* Class C Shares are subject to a distribution fee of
0.75% and an account maintenance fee of 0.25%. In
addition, Class C Shares are subject to a 1.00% con-
tingent deferred sales charge if redeemed within one
year of purchase.
* Class D Shares incur a maximum initial sales charge
of 5.25% and an account maintenance fee of 0.25%
(but no distribution fee).
<PAGE>
The performance data for the Fund's Class A and
Class B Shares are presented in the "Performance
Summary" and "Average Annual Total Return" tables
on page 5. Data for all of the Fund's shares, including
Class C and Class D Shares, are presented in the
"Recent Performance Results" table.
The "Recent Performance Results" table on page 6
shows investment results before the deduction of any
sales charges for Class A and Class B Shares for the
12-month and 3-month periods ended October 31,
1994 and for Class C and Class D Shares for the period
since inception through October 31, 1994. All data
in this table assume imposition of the actual total
expenses incurred by each class of shares during the
relevant period.
None of the past results shown should 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.
PERFORMANCE DATA (continued)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Period Net Asset Value Capital Gains
Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/26/88--12/31/88 $16.05 $14.08 $1.471 $0.134 - 2.21%
1989 14.08 16.85 1.035 0.409 +30.13
1990 16.85 14.92 0.371 0.401 - 6.98
1991 14.92 16.71 2.199 0.553 +32.23
1992 16.71 16.37 0.679 0.612 + 6.12
1993 16.37 15.85 1.920 0.308 +11.42
1/1/94--10/31/94 15.85 14.38 0.548 0.199 - 4.15
Total $8.223 Total $2.616
Cumulative total return as of 10/31/94: +77.37%**
<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>
Period Net Asset Value Capital Gains
Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
3/5/84--12/31/84 $10.00 $10.98 -- $0.130 +11.12%
1985 10.98 13.37 $ 0.250 0.130 +25.75
1986 13.37 15.18 0.080 0.100 +14.90
1987 15.18 12.98 1.441 0.163 - 5.09
1988 12.98 14.07 1.555 0.201 +22.09
1989 14.07 16.85 1.035 0.227 +28.88
1990 16.85 14.92 0.371 0.235 - 7.96
1991 14.92 16.70 2.199 0.374 +30.79
1992 16.70 16.37 0.679 0.438 + 5.07
1993 16.37 15.77 1.920 0.217 +10.27
1/1/94--10/31/94 15.77 14.19 0.548 0.185 - 4.99
Total $10.078 Total $2.400
Cumulative total return as of 10/31/94: +217.71%**
<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>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/94 +0.49% -4.79%
Five Years Ended 9/30/94 +6.39 +5.25
Inception (10/26/88) +9.96 +8.97
through 9/30/94
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/94 - 0.58% - 4.07%
Five Years Ended 9/30/94 + 5.29 + 5.29
Ten Years Ended 9/30/94 +11.39 +11.39
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced
to 0% after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<TABLE>
Recent Performance Results
<CAPTION>
12 Month 3 Month
10/31/94 7/31/94++ 10/31/93 % Change % Change++
<S> <C> <C> <C> <C> <C>
ML Fund For Tomorrow, Inc. Class A Shares* $14.38 $13.72 $17.02 -6.13%(1) +4.81%
ML Fund For Tomorrow, Inc. Class B Shares* 14.19 13.58 16.97 -7.03(1) +4.49
ML Fund For Tomorrow, Inc. Class C Shares* 14.19 14.08 -- -- +0.78
ML Fund For Tomorrow, Inc. Class D Shares* 14.37 14.26 -- -- +0.77
Standard & Poor's 500 Index** 472.35 458.26 467.83 +0.97 +3.07
NASDAQ Industrial Index** 787.79 728.78 797.35 -1.20 +8.10
ML Fund For Tomorrow, Inc. Class A Shares--Total Return* -3.95(2) +4.81
ML Fund For Tomorrow, Inc. Class B Shares--Total Return* -4.98(3) +4.49
ML Fund For Tomorrow, Inc. Class C Shares--Total Return* -- +0.78
ML Fund For Tomorrow, Inc. Class D Shares--Total Return* -- +0.77
Standard & Poor's 500 Index--Total Return** +3.84 +3.82
<FN>
*Investment results shown do not reflect sales charges; results shown would be lower
if a sales charge was included.
**An unmanaged broad-based Index comprised of common stocks. Total investment returns
for unmanaged indexes are based on estimates.
++Investment results shown for Class C and Class D Shares are since inception (10/21/94).
(1)Percent change includes reinvestment of $1.588 per share capital gains distributions.
(2)Percent change includes reinvestment of $0.342 per share ordinary income dividends and
$1.588 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.323 per share ordinary income dividends and
$1.588 per share capital gains distributions.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Computer Technologies
Electronics 50,000 American Power Conversion Corp. $ 918,750 $ 925,000 0.3%
Personal Computers 100,000 Apple Computer, Inc. 4,868,130 4,325,000 1.4
Components 140,000 Creative Technology, Ltd. (Ordinary) 1,965,000 2,012,500 0.6
Semiconductors 50,000 Intel Corp. 3,193,750 3,106,250 1.0
Information Systems 50,000 Sun Microsystems, Inc. 1,096,250 1,637,500 0.5
Components 1,400,000 Videologic Group PLC 968,625 468,499 0.1
Information Systems 100,000 Wonderware Corp. 2,050,000 2,500,000 0.8
------------ ------------ ------
15,060,505 14,974,749 4.7
Demographic Trends
Specialty Services 200,000 ADT Ltd. 1,987,000 2,250,000 0.7
Health & Fitness 307,350 CML Group Inc. 5,535,775 3,035,081 0.9
Entertainment 100,000 Mirage Resorts, Inc. 2,025,375 2,075,000 0.6
Entertainment 50,000 Promus Companies, Inc. 1,724,875 1,481,250 0.5
Specialty Services 100,000 Rollins, Inc. 2,508,573 2,337,500 0.7
Financial Services 50,000 SunAmerica Inc. 2,276,925 1,943,750 0.6
Leisure & Entertainment 100,000 WMS Industries Inc. 2,696,774 1,762,500 0.6
------------ ------------ ------
18,755,297 14,885,081 4.6
Developing Foreign Economies
Multi-Industry 300,000 Grupo Carso, S.A. de C.V. "A1" 1,192,885 3,192,140 1.0
Financial Services 60,100 Istituto Mobiliare Italiano S.p.A. (ADR)* 1,363,199 1,202,000 0.4
Financial Services 914,000 Manhattan Card Co. Ltd. 364,454 372,612 0.1
Telecommunications 190,000 Telefonos de Mexico, S.A. de C.V. (ADR)* 7,183,836 10,473,750 3.3
Telecommunications 90,000 Thai Telephone & Telecommunication PLC 520,034 563,561 0.2
Energy 100,000 YPF S.A. (ADR)* 2,698,460 2,412,500 0.7
------------ ------------ ------
13,322,868 18,216,563 5.7
<PAGE>
Environmental Solutions
Energy 95,100 Kenetech Corp. 1,523,891 1,164,975 0.4
Pollution Technology 250,000 Molten Metal Technology, Inc. 4,087,770 5,500,000 1.7
Pollution Technology 100,000 Purus Inc. 1,414,127 325,000 0.1
Pollution Technology 180,000 Thermo Electron Corp. 6,840,000 8,212,500 2.6
------------ ------------ ------
13,865,788 15,202,475 4.8
Extended Economic Cycles
Metals 50,000 Bethlehem Steel Corp. 1,137,500 950,000 0.3
Machinery 50,000 Caterpillar, Inc. 2,695,963 2,987,500 0.9
Machinery 50,000 Deere & Co. 3,405,500 3,587,500 1.1
Chemicals 50,000 Eastman Chemical Co. 2,679,687 2,700,000 0.9
Chemicals 100,000 Imperial Chemical Industries PLC (ADR)* 5,251,425 5,200,000 1.6
Chemicals 50,000 Lyondell Petrochemical Co. 1,605,311 1,368,750 0.4
Chemicals 50,000 Rohm & Haas Co. 3,329,500 3,018,750 1.0
------------ ------------ ------
20,104,886 19,812,500 6.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Future Retailing
Specialty Retail 100,000 Authentic Fitness Corp. $ 1,556,250 $ 1,512,500 0.5%
Specialty Retail 14,100 Corporate Express, Inc. 225,600 313,725 0.1
Private Label 160,000 Cott Corp. 5,005,002 1,600,000 0.5
Private Label 115,300 Nutramax Products, Inc. 1,548,900 1,095,350 0.3
Private Label 100,000 The Perrigo Company, Inc. 2,235,781 1,350,000 0.4
Specialty Retail 75,000 Variflex, Inc. 1,152,500 1,518,750 0.5
Specialty Retail 200,000 Wal-Mart Stores, Inc. 5,258,570 4,700,000 1.5
------------ ------------ ------
16,982,603 12,090,325 3.8
Global Market Expansion
Energy 100,000 Amoco Corp. 5,665,900 6,337,500 2.0
Household Products 74,600 Colgate-Palmolive Co. 1,548,920 4,550,600 1.4
Energy 100,000 Mobil Oil Corp. 7,973,380 8,600,000 2.7
Food & Beverage 280,000 PepsiCo, Inc. 7,943,124 9,800,000 3.1
Consumer Appliances 50,000 Whirlpool Corp. 2,543,663 2,600,000 0.8
------------ ------------ ------
25,674,987 31,888,100 10.0
<PAGE>
Healthcare Cost Containment
Biotechnology 65,000 Chiron Corp. 3,681,187 4,371,250 1.4
Health Maintenance 100,000 FHP International Corp. 2,275,000 2,875,000 0.9
Pharmaceuticals 150,900 Merck & Co., Inc. 5,685,639 5,394,675 1.7
Pharmaceuticals 100,000 Pfizer, Inc. 3,038,128 7,412,500 2.3
Pharmaceuticals 137,200 Schering-Plough Corp. 3,180,566 9,775,500 3.0
Medical Equipment 100,000 Thermotrex Corp. 1,529,330 1,525,000 0.5
Medical Equipment 100,000 United States Surgical Corp. 6,799,013 2,250,000 0.7
------------ ------------ ------
26,188,863 33,603,925 10.5
Industrial Outsourcing
Automotive Components 50,000 Hayes Wheels International, Inc. 1,176,725 1,175,000 0.4
Specialty Services 82,400 Interim Services, Inc. 1,778,775 2,008,500 0.6
Automotive Components 210,000 Magna International, Inc. 3,191,250 7,455,000 2.3
Specialty Services 100,000 Olsten Corp. 3,190,200 3,587,500 1.1
------------ ------------ ------
9,336,950 14,226,000 4.4
Industrial Renaissance
Automobile 335,600 Chrysler Corp. 9,499,032 16,360,500 5.1
Automobile 200,000 Ford Motor Co. 4,590,380 5,900,000 1.8
Automobile 200,000 General Motors Corp. 7,896,900 7,900,000 2.5
Information Systems 200,000 International Business Machines Corp. 11,614,254 14,900,000 4.7
------------ ------------ ------
33,600,566 45,060,500 14.1
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Multimedia
Wireless Cable Television 55,000 American Telecasting, Inc. $ 990,000 $ 715,000 0.2%
Wireless Cable Television 102,000 CAI Wireless Systems, Inc. 1,172,000 1,020,000 0.3
Wireless Cable Television 65,000 CableMaxx, Inc. 786,875 357,500 0.1
Broadcast, Radio &
Television 75,000 Comcast UK Cable Partners, Ltd. 1,125,000 1,481,250 0.5
Leisure & Entertainment 90,000 LodgeNet Entertainment Corp. 1,316,730 652,500 0.2
Broadcasting &
Publishing 225,000 The News Corp. Ltd. (ADR)* 9,030,250 10,996,875 3.4
Wireless Cable Television 50,000 Preferred Entertainment, Inc. 938,500 812,500 0.3
Leisure & Entertainment 125,000 Time Warner, Inc. 3,491,400 4,437,500 1.4
Leisure & Entertainment 54,400 The Walt Disney Co. 1,424,668 2,142,000 0.7
------------ ------------ ------
20,275,423 22,615,125 7.1
<PAGE>
Progressive Education
Education 50,000 Broderbund Software, Inc. 1,627,500 3,200,000 1.0
Education 175,000 Education Alternatives, Inc. 5,308,522 3,675,000 1.1
Education 140,000 Scholastic Corporation 6,019,125 6,370,000 2.0
------------ ------------ ------
12,955,147 13,245,000 4.1
Strategic Growth Opportunities
Apparel 225,000 Chic by H.I.S., Inc. 2,846,059 2,418,750 0.8
Telecommunications
Telecommunications 165,000 ALC Communications Corp. 2,504,250 6,249,375 1.9
Components 150,000 ANTEC Corp. 3,557,150 4,200,000 1.3
Cellular Communications 300,000 AirTouch Communications, Inc. 5,772,230 8,962,500 2.8
Components 35,400 BroadBand Technologies, Inc. 637,200 911,550 0.3
Components 150,000 Inter-Tel, Inc. 1,383,862 1,218,750 0.4
Telecommunications 150,000 MCI Communications Corp. 3,895,310 3,450,000 1.1
Telecommunications 100,000 MFS Communications Co., Inc. 2,536,850 3,700,000 1.2
Paging Systems 225,000 Metrocall, Inc. 3,473,127 3,712,500 1.2
Electronics 100,000 Nokia AB (ADR)* 5,715,875 7,512,500 2.3
Paging Systems 300,000 USA Mobile Communications Holdings, Inc. 2,837,500 2,700,000 0.8
------------ ------------ ------
32,313,354 42,617,175 13.3
Total Stocks 261,283,296 300,856,268 94.1
</TABLE>
<TABLE>
Face Percent of
Amount Short-Term Securities Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Commercial $13,663,000 General Electric Capital Corp., 4.72%
Paper** due 11/01/1994 $ 13,663,000 $ 13,663,000 4.3%
5,000,000 PHH Corp., 4.92% due 11/28/1994 4,981,550 4,981,550 1.5
Total Short-Term Securities 18,644,550 18,644,550 5.8
<PAGE>
Total Investments $279,927,846 319,500,818 99.9
============
Other Assets Less Liabilities 304,842 0.1
------------ ------
Net Assets $319,805,660 100.0%
============ ======
Net Asset Class A--Based on net assets of $9,428,706 and 655,894 shares
Value: outstanding $ 14.38
============
Class B--Based on net assets of $310,373,812 and 21,875,587 shares
outstanding $ 14.19
============
Class C--Based on net assets of $1,561 and 110 shares outstanding $ 14.19
============
Class D--Based on net assets of $1,581 and 110 shares outstanding $ 14.37
============
<FN>
*American Depositary Receipts (ADR).
**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.
</TABLE>
PORTFOLIO INFORMATION
For the Quarter Ended October 31, 1994
Percent of
Ten Largest Holdings Net Assets
Chrysler Corp. 5.1%
International Business Machines Corp. 4.7
The News Corp. Ltd. (ADR) 3.4
Telefonos de Mexico, S.A. de C.V. (ADR) 3.3
PepsiCo, Inc. 3.1
Schering-Plough Corp. 3.0
AirTouch Communications, Inc. 2.8
Mobil Oil Corp. 2.7
Thermo Electron Corp. 2.6
General Motors Corp. 2.5
Additions
American Power Conversion Corp.
Comcast UK Cable Partners, Ltd.
Corporate Express, Inc.
Eastman Chemical Co.
Imperial Chemical Industries PLC (ADR)
Lyondell Petrochemical Co.
Mirage Resorts, Inc.
Nokia AB (ADR)
Promus Companies, Inc.
<PAGE>
Deletions
American Express Co.
Barnes & Noble, Inc.
Burlington Industries, Inc.
Discount Auto Parts, Inc.
Household International Inc.
The Limited, Inc.
Liz Claiborne, Inc.
The New York Times Co.
Procyte Corp.
Providian Corp.
Sotheby's Holdings, Inc. (Class A)
Video Lottery Technologies, Inc.
WMX Technologies, Inc.
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Ronald W. Forbes, Director
Cyntha A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Donald C. Burke, Vice President
Vincent P. Dileo, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Susan B. Baker, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
APPENDIX: GRAPHIC AND IMAGE MATERIAL.
ITEM 1:
Concept Sectors
Pie graph depicting Concept Sectors As a Percentage of Net Assets
As of October 31, 1994:
Computer Technologies 4.7%
Demographic Trends 4.6%
Developing Foreign Economies 5.7%
Environmental Solutions 4.8%
Extended Economic Cycles 6.2%
Future Retailing 3.8%
Global Market Expansion 10.0%
Healthcare Cost Containment 10.5%
Industrial Outsourcing 4.4%
Industrial Renaissance 14.1%
Multimedia 7.1%
Progressive Education 4.1%
Strategic Growth Opportunities 0.8%
Telecommunications 13.3%
Cash 5.9%
ITEM 2:
Growth Stock Characteristics
Bar graph depicting Growth Stock Characteristics as a % of Equity
Holdings:
Emerging Growth 7.3% 19.3%
Established Growth 20.7% 14.5%
Stable Growth 14.4% 23.8%
