MERRILL
LYNCH
FUND FOR
TOMORROW,
INC.
Quarterly Report April 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 pro-
spectus. Past performance results shown in this report
should not be considered a representation of future per-
formance. 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
MERRILL LYNCH FUND FOR TOMORROW, INC.
GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX,
GRAPHIC AND IMAGE MATERIAL: Item 1.
DEAR SHAREHOLDER
Inflationary expectations and investor sentiment changed for the
worse during the April quarter. Following stronger-than-expected
economic results through year-end 1993, the Federal Reserve Board
broke with tradition on February 4, 1994 and publicly announced a
modest 25 basis point (0.25%) increase in short-term interest rates.
At the March 22 meeting of the Federal Open Market Committee, the
Federal Reserve Board again raised the Federal Funds rate by 25 basis
points, followed by another 25 basis point increase on April 18.
<PAGE>
Rather than view the Federal Reserve Board's first tightening move
as a preemptive strike against inflation, fixed-income investors fo-
cused on Chairman Greenspan's implicit promise of further tightening
should the rate of inflation accelerate, and bond prices declined
sharply. The setback in the bond market was also reflected in greater
stock market volatility. While the second and third increases in
the Federal Funds rate were less of a surprise, investors remained
concerned that interest rates would trend upward sharply as the
central bank aggressively attempted to contain the inflationary
pressures of an improving economy. At the same time, highly lev-
eraged investors were forced to liquidate positions in the face of
declining stock and bond prices. Investor confidence was not re-
stored with the announcement of the surprisingly slow 2.6% gross
domestic product growth rate for the first calendar quarter of 1994.
Instead, investors focused on the higher-than-expected (but still
moderate) broad inflation measures and became concerned that busi-
ness activity was beginning to stagnate as inflationary pressures
were increasing.
The volatility in the US capital markets was mirrored in inter-
national markets during the period. Political and economic develop-
ments, along with concerns of heightened global inflationary pres-
sures, led to a sell-off in most capital markets, especially the
emerging markets that had appreciated strongly in 1993.
Portfolio Strategy
During the Fund's first fiscal quarter of 1994, a series of domestic
and international events seemed to unsettle many of the financial
markets around the world. Within the United States there were con-
cerns of both a political nature as well as disturbing economic
developments in the form of inflationary concerns and rising interest
rates. Also, close to home and affecting the recent North American
Free Trade Agreement, political and social unrest in Mexico caused
serious, but possibly temporary, doubts regarding the continuing
economic growth in Latin America. Worsening some of the existing
tensions in the Far East, Japan again encountered political turmoil,
China/US relations became somewhat strained over human rights issues,
and North Korea continued its unyielding military position. The
confluence of these rather disconcerting events caused weakness
in many of the stock markets in which the Fund is invested.
<PAGE>
Within the US equity market, it was clear that smaller-capital-
ization companies in particular were under pressure during the
April quarter, as witnessed by the more significant decline in the
NASDAQ Composite Index. As part of the Fund's earlier investment
strategy, stocks in these smaller-capitalization companies have
become an increasingly larger segment of the portfolio based on
their superior longer-term growth potential. In addition, however,
the Fund's overweighting in the automotive industry, which greatly
contributed to strong performance in the January quarter, came
under selling pressure. The most obvious reason for the weakness in
this sector was the growing concern over rising interest rates
and their impact on the demand for new automobiles. However, we do
not believe the extent of higher interest rates will be onerous and,
more importantly, there is strong evidence that the automobile
market has at least another year or two of favorable sales com-
parisons.
The Fund's investments in Latin America also suffered from a gen-
erally broad sell-off in those stock markets. Again, we believe
the problems in Mexico's political and economic outlook are short
term in nature. Overall, equity share price activity has become
quite volatile in recent months as investors seem to have focused on
short-term market factors rather than longer-term value and growth
potential. While occasionally taking advantage of shorter-term
opportunities, we continue to favor sound fundamentals as the
most important consideration for seeking capital appreciation in
the equity markets.
Most investment activity during the April quarter followed two basic
objectives: supplementing existing "concept tomorrow" category
holdings and taking profits among stocks that met targeted price
objectives. Within the Fund's 14 current investment concepts, we
added 14 new companies to the portfolio. We increased the global
market expansion concept sector by adding two energy companies, Amoco
Corp. and Mobil Oil Corp. To the industrial outsourcing concept
sector we added Olsten Corp., which is engaged in employment ser-
vices; and we added Procyte Corp. and Thermotrex Corp. to the health-
care technology concept sector. In addition, we added several hold-
ings to the developing foreign economies concept. These are Istituto
Mobiliare Italiano S.p.A., a financial services company in Italy;
Manhattan Card Co. Ltd. in the credit card business in Hong Kong;
and Thai Telephone & Telecommunication PLC in Thailand. Adding to
the concepts of multimedia and telecommunications, we bought CAI
Wireless Systems, Inc., a cable television operator, USA Mobile
Communications Holdings, Inc., a paging company, and Hollywood En-
tertainment Corp. in the video rental business. Completing our list
of new holdings are WMX Technologies, Inc. in environmental solu-
tions, Compaq Computer Corp. in computer technology and Household
International Inc., a leading personal finance company, in strategic
growth opportunities.
<PAGE>
We eliminated 17 holdings during the period, which for the most part
were opportunities to capture profits. Noteworthy examples of these
instances were Breed Technologies, Inc., which doubled in price, and
the aforementioned Compaq Computer, which appreciated by 30% in the
April quarter. On the other hand, we sold several stocks because
they no longer adequately fit the Fund's new growth concept criteria.
These included Dayton Hudson Corp., Reebok International Ltd. and
Nestle AG.
As an ongoing part of the Fund's shareholder reports, we illustrate
the "Concept Tomorrow" segmentation of portfolio holdings through
two charts which can be found on page 1. The significant changes
within the concept sectors during the April quarter were in the de-
veloping foreign economies, environmental solutions, global market
expansion, healthcare technology and multimedia concept sectors.
These concepts each increased one percentage point or more since
the January quarter. We decreased the weightings of the demographic
trends and strategic growth opportunities concept sectors by one
percentage point or more. The weightings in the Fund's profile of
growth stock characteristics shifted somewhat toward both ends of
the growth spectrum, increasing by 4 percentage points in the emerging
growth sectors and by 2.4 percentage points in the stable growth
category.
It should be noted again that these investment concepts have various
individual short-term and long-term time parameters, but typically
have excellent appreciation potential over a two-year--three-year
period. Accordingly, our initial investments are primarily based on
longer-term objectives which generally require patience and discipline
in order to achieve their full potential. In addition, companies
with longer-term earnings growth criteria tend to be subject to some-
what greater interim share price volatility during periods of caution
in the stock markets. Therefore, following the Fund's strong per-
formance in the January quarter, we do not feel that the performance
disparity in the recent April quarter alters the Fund's ongoing po-
tential for above-average appreciation in future periods.
<PAGE>
In Conclusion
Looking ahead, our investment strategy will be focused on both
domestic and foreign companies that stand to benefit from continued
economic growth. We believe that industrial production and information
systems will show further market expansion in the United States and
Europe, while consumer spending will begin to accelerate. Accordingly,
we believe the Fund's current holdings in the automotive industry,
computer technology and global market expansion continue to be attrac-
tive while specialty retail and multimedia are likely to show im-
proving earnings. We also look for energy-related companies to benefit
from rising global demand and higher prices. However, in addition to
long-term fundamentals, the common denominator for successful stock
selection in the months ahead is likely to be increased attention to
companies with quarter-to-quarter earnings growth which have the po-
tential to surpass, rather than just confirm, earlier expectations.
We believe many of our existing holdings have this potential, and our
new investment activity will attempt to emphasize these criteria.
We appreciate your ongoing interest in Merrill Lynch Fund For
Tomorrow, Inc., and we look forward to assisting you with your fin-
ancial needs and objectives in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent P. Dileo)
Vincent P. Dileo
Vice President and Portfolio Manager
May 19, 1994
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.
<PAGE>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/94 + 2.75% - 3.93%
Five Years Ended 3/31/94 + 9.99 + 8.52
Inception (10/26/88)
through 3/31/94 +10.43 + 9.07
[FN]
* Maximum sales charge is 6.5%.
** Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/94 + 1.69% - 1.84%
Five Years Ended 3/31/94 + 8.87 + 8.87
Ten Years Ended 3/31/94 +11.85 +11.85
[FN]
* Maximum contingent deferred sales charge is 4% and is reduced
to 0% after 4 years.
** Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (concluded)
<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>
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--4/30/94 15.85 14.64 -- -- - 7.63
------ ------
Total $7.675 Total $2.417
Cumulative total return as of 4/30/94: +70.93%**
<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>
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--4/30/94 15.77 14.52 -- -- - 7.93
------ ------
Total $9.530 Total $2.215
Cumulative total return as of 4/30/94: +207.90%**
<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>
<TABLE>
Recent Performance Results*
<CAPTION>
12 Month 3 Month
4/30/94 1/31/94 4/30/93 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Fund For Tomorrow, Inc. Class A Shares $ 14.64 $ 16.39 $ 16.16 + 2.12%(1) -10.68%
ML Fund For Tomorrow, Inc. Class B Shares 14.52 16.30 16.10 + 1.87(1) -10.92
Standard & Poor's 500 Index** 450.91 481.61 440.19 + 2.44 - 6.37
NASDAQ Composite Index** 733.84 800.47 661.42 +10.95 - 8.32
ML Fund For Tomorrow, Inc. Class A Shares--Total Return + 4.25(2) -10.68
ML Fund For Tomorrow, Inc. Class B Shares--Total Return + 3.23(3) -10.92
Standard & Poor's 500 Index--Total Return** + 5.28 - 5.76
<PAGE>
<FN>
* Investment results shown for the 3-month and 12-month periods are
before the deduction of any sales charges.
** An unmanaged broad-based Index comprised of common stocks. Total
investment returns for unmanaged indexes are based on estimates.
(1)Percent change includes reinvestment of $1.920 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.308 per share ordinary
income dividends and $1.920 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.217 per share ordinary
income dividends and $1.920 per share capital gains distributions.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Percent of
Concept Tomorrow Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Computer Technologies
Personal Computers 100,000 Apple Computer, Inc. $ 4,868,130 $ 3,000,000 0.9%
Components 70,000 Creative Technology, Ltd. (Ordinary) 1,965,000 1,522,500 0.4
Semiconductors 100,000 Intel Corp. 6,537,500 6,075,000 1.7
Components 50,000 Valence Technology, Inc. 1,003,374 537,500 0.2
Information Systems 100,000 Wonderware Corp. 2,050,000 1,350,000 0.4
------------ ------------ ------
16,424,004 12,485,000 3.6
Demographic Trends
Health & Fitness 307,350 CML Group Inc. 5,535,775 4,149,225 1.2
Insurance 224,400 Capital Holding Corp. 8,653,662 6,732,000 1.9
Specialty Services 100,000 Sotheby's Holdings, Inc. (Class A) 1,228,352 1,775,000 0.5
Financial Services 50,000 SunAmerica Inc. 2,276,925 1,831,250 0.5
Leisure & Entertainment 100,000 Video Lottery Technologies, Inc. 1,541,885 1,500,000 0.4
Leisure & Entertainment 100,000 WMS Industries Inc. 2,696,774 2,400,000 0.7
------------ ------------ ------
21,933,373 18,387,475 5.2
Developing Foreign Economies
<PAGE>
Automotive 43,500 Brilliance China Automotive Holdings Ltd. 969,269 576,375 0.2
Construction 50,000 Bufete Industrial S.A. (ADR)* 1,213,155 1,443,750 0.4
Food & Beverage 150,000 Compania Cervecerias Unidas S.A. (ADR)* 2,182,500 3,206,250 0.9
Automotive 25,000 Ek Chor China Motorcycle Co., Ltd. 525,000 596,875 0.2
Multi-Industry 390,000 Grupo Carso S.A. de C.V. "A1" 1,512,623 3,873,186 1.1
Leisure & Entertainment 100,000 Grupo Televisa, S.A. de C.V. (GDS)** 5,646,130 5,300,000 1.5
Home Furnishings 65,000 Industrie Natuzzi S.p.A. (ADR)* 975,000 1,763,125 0.5
Financial Services 60,100 Istituto Mobiliare Italiano S.p.A. (ADR)* 1,363,199 1,487,475 0.4
Financial Services 914,000 Manhattan Card Co. Ltd. 364,454 328,373 0.1
Telecommunications 190,000 Telefonos de Mexico, S.A. de C.V. (ADR)* 7,183,836 11,186,250 3.2
Telecommunications 90,000 Thai Telephone & Telecommunication PLC 520,034 518,474 0.1
Energy 100,000 YPF S.A. (ADR)* 2,698,460 2,475,000 0.7
------------ ------------ ------
25,153,660 32,755,133 9.3
Environmental Solutions
Pollution Technology 250,000 Molten Metal Technology, Inc. 4,087,770 5,000,000 1.4
Pollution Technology 100,000 Purus Inc. 1,414,127 800,000 0.2
Pollution Technology 180,000 Thermo Electron Corp. 6,840,000 6,817,500 1.9
Waste Management 150,000 WMX Technologies, Inc. 3,605,880 3,918,750 1.1
------------ ------------ ------
15,947,777 16,536,250 4.6
Future Retailing
Specialty Retail 100,000 Authentic Fitness Corp. 1,556,250 1,400,000 0.4
Specialty Retail 105,700 Barnes & Noble, Inc. 2,517,000 2,285,763 0.7
Private Label 160,000 Cott Corp. 5,005,001 3,420,000 1.0
Specialty Retail 70,000 Discount Auto Parts, Inc. 1,788,375 1,688,750 0.5
Private Label 115,300 Nutramax Products, Inc. 1,548,900 1,181,825 0.3
Private Label 170,000 The Perrigo Company, Inc. 3,787,810 3,230,000 0.9
Specialty Retail 20,000 Sports & Recreation, Inc. 490,000 820,000 0.2
Specialty Retail 200,000 Wal-Mart Stores, Inc. 5,258,570 5,050,000 1.4
------------ ------------ ------
21,951,906 19,076,338 5.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Percent of
Concept Tomorrow Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Global Market Expansion
Financial Services 335,000 American Express Co. $ 10,153,775 $ 9,924,375 2.8%
Energy 100,000 Amoco Corp. 5,665,900 5,612,500 1.6
Food & Beverage 99,600 CPC International, Inc. 4,276,796 4,805,700 1.4
Household Products 74,600 Colgate-Palmolive Co. 1,548,919 4,373,425 1.2
Energy 100,000 Mobil Oil Corp. 7,973,380 7,825,000 2.2
Food & Beverage 230,000 PepsiCo, Inc. 6,402,624 8,395,000 2.4
------------ ------------ ------
36,021,394 40,936,000 11.6
<PAGE>
Healthcare Cost Containment
Health Maintenance 100,000 FHP International Corp. 2,275,000 2,425,000 0.7
Medical Equipment 100,000 United States Surgical Corp. 6,799,013 1,762,500 0.5
------------ ------------ ------
9,074,013 4,187,500 1.2
Healthcare Technology
Biotechnology 75,000 Amgen Inc. 2,963,750 3,037,500 0.9
Biotechnology 65,000 Chiron Corp. 3,681,188 4,208,750 1.2
Pharmaceuticals 150,900 Merck & Co., Inc. 5,685,639 4,470,412 1.3
Pharmaceuticals 100,000 Pfizer, Inc. 3,038,128 5,900,000 1.7
Biotechnology 105,000 Procyte Corp. 1,391,250 1,168,125 0.3
Pharmaceuticals 137,200 Schering-Plough Corp. 3,180,566 8,369,200 2.4
Medical Equipment 57,000 Thermotrex Corp. 876,375 897,750 0.3
Pharmaceuticals 100,000 Wellcome PLC (ADR)* 1,525,000 800,000 0.2
------------ ------------ ------
22,341,896 28,851,737 8.3
Industrial Outsourcing
Automotive Components 50,000 Hayes Wheels International, Inc. 1,176,725 1,375,000 0.4
Specialty Services 32,400 Interim Services, Inc. 648,000 793,800 0.2
Automotive Components 210,000 Magna International, Inc. 3,191,250 9,423,750 2.7
Specialty Services 72,600 Olsten Corp. 2,312,632 2,359,500 0.7
------------ ------------ ------
7,328,607 13,952,050 4.0
Industrial Renaissance
Automobile 350,000 Chrysler Corp. 9,780,250 16,756,250 4.8
Automobile 100,000 Ford Motor Co. 4,590,380 5,837,500 1.7
Automobile 200,000 General Motors Corp. 7,896,900 11,350,000 3.2
Information Processing 150,000 International Business Machines Corp. 8,780,004 8,587,500 2.5
------------ ------------ ------
31,047,534 42,531,250 12.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Percent of
Concept Tomorrow Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Multimedia
<PAGE>
Wireless Cable Television 55,000 American Telecasting, Inc. $ 990,000 $ 976,250 0.3%
Wireless Cable Television 102,000 CAI Wireless Systems, Inc. 1,172,000 1,122,000 0.3
Wireless Cable Television 75,000 CableMaxx, Inc. 906,875 675,000 0.2
Leisure & Entertainment 53,000 Hollywood Entertainment Corp. 913,525 1,404,500 0.4
Leisure & Entertainment 100,000 LodgeNet Entertainment Corp. 1,451,730 1,225,000 0.4
Broadcasting & Publishing 225,000 The News Corp. Ltd. (ADR)* 9,030,250 12,318,750 3.5
Wireless Cable Television 50,000 Preferred Entertainment, Inc. 938,500 937,500 0.3
Leisure & Entertainment 125,000 Time Warner, Inc. 3,491,400 4,437,500 1.3
Specialty Retail 50,000 ValueVision International, Inc. (Class A) 663,125 256,250 0.1
Leisure & Entertainment 175,000 The Walt Disney Co. 4,583,031 7,415,625 2.1
------------ ------------ ------
24,140,436 30,768,375 8.9
Progressive Education
Education 100,000 Broderbund Software, Inc. 3,459,375 3,375,000 1.0
Education 175,000 Education Alternatives, Inc. 5,308,522 2,931,250 0.8
Education 140,000 Scholastic Corporation 6,019,125 5,005,000 1.4
------------ ------------ ------
14,787,022 11,311,250 3.2
Strategic Growth Opportunities
Textile & Apparel 200,000 Burlington Industries, Inc. 2,671,074 3,050,000 0.9
Apparel 150,000 Chic by H.I.S., Inc. 1,917,934 2,175,000 0.6
Financial Services 100,000 Household International Inc. 3,138,737 3,137,500 0.9
Specialty Retail 150,000 The Limited, Inc. 3,962,130 2,887,500 0.8
Apparel 150,000 Liz Claiborne, Inc. 5,454,429 3,750,000 1.1
Broadcasting & Publishing 237,900 The New York Times Co. 7,789,967 6,036,712 1.7
------------ ------------ ------
24,934,271 21,036,712 6.0
Telecommunications
Telecommunications 215,000 ALC Communications Corp. 3,216,750 7,605,625 2.2
Components 100,000 ANTEC Corp. 2,292,650 2,675,000 0.8
Cellular Communications 300,000 Airtouch Communications, Inc.(a)(b) 5,772,230 7,387,500 2.1
Components 35,400 BroadBand Technologies, Inc. 637,200 513,300 0.1
Components 150,000 Inter-Tel, Inc. 1,383,862 1,537,500 0.4
Telecommunications 150,000 MCI Communications Corp. 3,895,310 3,412,500 1.0
Telecommunications 100,000 MFS Communications Co., Inc. 2,536,850 2,750,000 0.8
Paging Systems 200,000 Metrocall, Inc. 3,136,877 3,150,000 0.9
Components 100,000 Northern Telecom Ltd. 2,771,630 2,975,000 0.8
Paging Services 300,000 USA Mobile Communications Holdings, Inc. 2,837,500 2,625,000 0.8
------------ ------------ ------
28,480,859 34,631,425 9.9
Total Common Stocks 299,566,752 327,446,495 93.4
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Face Percent of
Amount Short-Term Securities Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Commercial $ 4,614,000 General Electric Capital Corp., 3.53%
Paper*** due 5/02/1994 $ 4,613,095 $ 4,613,095 1.3%
5,000,000 Internationale Nederland Groep, 3.63%
due 5/12/1994 4,993,950 4,993,950 1.4
US Government Agency 5,000,000 Federal Home Loan Mortgage Association,
Obligations*** 3.77% due 5/18/1994 4,990,575 4,990,575 1.4
Total Short-Term Securities 14,597,620 14,597,620 4.1
Total Investments $314,164,372 342,044,115 97.5
============
Other Assets Less Liabilities 8,644,715 2.5
------------ ------
Net Assets $350,688,830 100.0%
============ ======
Net Asset Class A--Based on net assets of $9,897,291 and 675,905
Value: shares outstanding $ 14.64
============
Class B--Based on net assets of $340,791,539 and
23,469,593 shares outstanding $ 14.52
============
<FN>
(a) Formerly Pactel Corp.
(b) Airtouch Communications, Inc. was a spinoff from Pacific Telesis Group.
* American Depositary Receipts (ADR).
** Global Depositary Shares (GDS).
*** Commercial Paper and certain US Government Agency Obligations are traded
on a discount basis; the interest rates shown are the discount rates
paid at the time of purchase by the Fund.
</TABLE>
<PAGE>
PORTFOLIO INFORMATION
For the Quarter Ended April 30, 1994
Ten Largest Holdings Percent of
Net Assets
Chrysler Corp. 4.8%
The News Corp. Ltd. (ADR) 3.5
General Motors Corp. 3.2
Telefonos de Mexico, S.A. de C.V. (ADR) 3.2
American Express Co. 2.8
Magna International, Inc. 2.7
International Business Machines Corp. 2.5
PepsiCo, Inc. 2.4
Schering-Plough Corp. 2.4
Mobil Oil Corp. 2.2
Additions
Amoco Corp.
CAI Wireless Systems, Inc.
*Compaq Computer Corp.
Hollywood Entertainment Corp.
Household International Inc.
Istituto Mobiliare Italiano S.p.A. (ADR)
Manhattan Card Co. Ltd.
Mobil Oil Corp.
Olsten Corp.
Procyte Corp.
Thai Telephone & Telecommunication PLC
Thermotrex Corp.
USA Mobile Communications Holdings, Inc.
WMX Technologies, Inc.
<PAGE>
Deletions
AFLAC Inc.
Bausch & Lomb Inc.
Bell Atlantic Corp.
BellSouth Corp.
Books-A-Million, Inc.
Breed Technologies, Inc.
Cambridge Biotech Corp.
Cobra Golf Inc.
*Compaq Computer Corp.
Cristalerias de Chile S.A. (ADR)
Dayton Hudson Corp.
Kaufman and Broad Home Corp.
Lennar Corp.
Nestle AG
Pacific Telesis Group
Reebok International Ltd.
York International Corp.
[FN]
*Added and deleted in the same quarter.
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Ronald W. Forbes, 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
110 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:
Pie graph depicting Concept Sectors As a Percentage of Net Assets
As of April 30, 1994:
Computer Technologies--3.6%
Demographic Trends--5.2%
Developing Foreign Economies--9.3%
Environmental Solutions--4.6%
Future Retailing--5.4%
Global Market Expansion--11.6%
Healthcare Cost Containment--1.2%
Healthcare Technology--8.3%
Industrial Outsourcing--4.0%
Industrial Renaissance--12.2%
Multimedia--8.9%
Progressive Education--3.2%
Telecommunications--9.9%
Strategic Growth Opportunities--6.0%
Cash--6.6%
[FN]
*Net of other assets less liabilities.
Bar Graph depicting Growth Stock Characteristics as a % of Equity
Holdings:
Emerging Growth 6.4% 21.5%
Established Growth 19.2% 18.9%
Stable Growth 15.5% 18.5%
