MERRILL LYNCH
FUND FOR
TOMORROW, INC.
FUND LOGO
Quarterly Report
October 31, 1995
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.
<PAGE>
Merrill Lynch
Fund For Tomorrow, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH FUND FOR TOMORROW, INC.
Pie graph depicting Concept Sectors As a Percentage of
Net Assets As of October 31, 1995:
<PAGE>
Computer Technologies 3.7%
Demographic Trends 5.4%
Developing Foreign Economies 2.9%
Future Retailing 2.0%
Global Market Expansion 10.8%
Healthcare Cost Containment 12.2%
Industrial Outsourcing 1.9%
Industrial Renaissance 7.9%
Multimedia 6.4%
Next Generation Technology 12.0%
Strategic Growth Opportunities 2.8%
Telecommunications 17.8%
Cash* 14.2%
[FN]
*Net of Liabilities in exess of other assets.
Bar Graph depicting Growth Stock Characteristics As a Percentage
of Equity Holdings As of October 31, 1995:
Emerging Growth 10.3% 16.7%
Established Growth 19.3% 21.4%
Stable Growth 16.8% 15.5%
DEAR SHAREHOLDER
After losing momentum through the second calendar quarter of 1995,
it now appears that the US economic expansion has resumed. Gross
domestic product growth for the three months ended September 30 was
reported to be 4.2%, higher than generally expected. September
durable goods orders increased a surprisingly strong 3%, and
existing home sales rose to a near-record level. At the same time,
there is evidence that inflationary pressures remain subdued.
Reflecting the trend of renewed economic growth--and continued good
news on the inflation front--the Federal Reserve Board signaled no
near-term shift in monetary policy following its September meeting.
Thus, official interest rates may not be reduced further in the
immediate future.
One of the major developments during the October quarter was the
strengthening of the US dollar relative to the yen and the
Deutschemark. Improving interest rate differentials favoring the US
currency, combined with coordinated central bank intervention and
more positive investor sentiment, have helped to bolster the dollar
in foreign exchange markets. Other factors that appear to be
improving the US dollar's outlook in the near term are a pick-up in
capital flows to the United States and the prospect of increased
capital outflows from Japan. However, it remains to be seen if the
US dollar's strengthening trend can continue without significant
improvements in the US budget and trade deficits.
<PAGE>
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
Portfolio Matters
Although economic developments indicated continued strength in
business activity during the quarter ended October 31, 1995, equity
investors began to exhibit caution. The Standard & Poor's 500
composite index moved within a relatively narrow range for most of
the quarter, but managed to post a gain of 3.5% at October 31, 1995.
The only significant strength in this broadly based index was among
the more defensive sectors such as consumer non-cyclical industries
and financial companies. Other industry groups such as technology,
consumer durables and capital goods were notably weaker. Similarly,
the technology sector of the over-the-counter market, and smaller
growth stocks in general, showed a somewhat volatile pattern of
price performance, with the NASDAQ Industrial Index closing out the
October quarter with a small decline. Internationally, stock markets
showed mixed performance results, with most emerging market
countries weaker than the more developed regions.
Following an exceptionally strong performance in the period ended
July 31, 1995, Merrill Lynch Fund For Tomorrow, Inc. also
encountered increased volatility during the October quarter. Modest
weakness early in the October period, an upturn mid-way and another
pullback late in the quarter resulted in a modest decline overall.
Total returns for the Fund's Class A, Class B, Class C and Class D
Shares were -1.01%, -1.28%, -1.28% and -1.07%, respectively.
(Results shown do not reflect sales charges; results would be lower
if sales charges were included. For complete performance
information, see pages 5-7 of this report to shareholders.)
Some of the Fund's holdings in the technology and telecommunications
industries were adversely affected by a broad correction in these
sectors, in part precipitated by mild disappointments in earning
reports. In many cases, investors' earnings expectations were
unreasonably high. We believe that because these high-growth sectors
of the stock market performed so well, it led to profit-taking. We
also engaged in profit-taking in the technology area during the
October quarter, primarily in holdings that met our interim price
targets. Nevertheless, we believe that technology, telecommunications
and multimedia are long-term growth concepts which should be well
represented in this growth-oriented portfolio. However, while
positive trends in these sectors are firmly in place, investment
opportunities are increasingly selective as stock prices become
more sensitive to reported earnings. Our strategy in high growth
potential investments involves focusing on long-term macro
visibility, strong product profiles, realistic earnings outlooks,
and justifiable stock valuations. Accordingly, while a higher degree
of volatility is inherent in these stocks, our confidence in their
continued appreciation potential is intact.
<PAGE>
In general, our investment strategy followed a somewhat cautious
path as the October quarter unfolded. Our approach was primarily
based on a longer-term outlook for slowing economic growth and the
possibility that corporate profits growth would begin to moderate.
With this outlook, we began to shift the portfolio's assets toward
non-economically sensitive industries such as healthcare, household
products and earnings turnaround opportunities. In addition, we
raised the Fund's cash reserve position from 12.9% to 15.9% of net
assets, both as a defensive measure and to better enable us to take
advantage of potential buying opportunities in the future.
During the quarter ended October 31, 1995, we added 22 new stocks to
the portfolio. While these additions encompassed a wide range of
industries, they clearly illustrate our strategic investment bias
toward technology and healthcare. Within the Fund's computer
technologies concept, our new stocks included Continental Circuits
Corp., which produces circuit boards; Silicon Graphics, Inc., which
specializes in media products; and the Vantive Corporation, a
provider of marketing support systems. Although a leader in computer
technology, we placed Digital Equipment Corp. in our industrial
renaissance concept because of the company's major internal
restructuring program.
Other new holdings which are closely related to computer technology
are CIS Technologies, Inc., which serves the hospital market, and
Accom, Inc. and Sierra On Line, Inc., two companies that serve the
entertainment industry. In healthcare, we added a broad range of
companies including Biomet, Inc. and Patterson Dental Co., where
demographic trends have favorable implications for osteopathic
devices and dental services. In the medical device industry sub-
sector, we purchased Boston Scientific Corp., Cordis Corporation,
ThermoLase Corp. and Thermospectra Corp. Additions of larger,
broadly based pharmaceutical companies included Astra AB, Eli Lilly
and Company, and Sandoz, AG.
Other additions to the Fund's portfolio included Eastbay, Inc., an
emerging growth company in sports equipment; CPT Telefonica Del
Peru, the major telecommunications company in Peru; Avon Products,
Inc., the worldwide leader in direct marketing of personal care
products; and, Indigo N.V.,a manufacturer of printing equipment. We
partici-pated in the initial public offering (IPO) of Gucci Group
N.V., one of the most celebrated luxury products companies in the
world. Although the Gucci reputation for quality and style is widely
known, the company has a relatively small market share which is the
primary reason we expect that management's efforts to expand
globally could be successful. Finally, we took a position in another
IPO, DST Systems, Inc., a software company that enables service
providers to outsource their administrative requirements.
<PAGE>
Other developments during the October quarter resulted in the
closing of two of our investment concept categories. The extended
economic cycles concept was originally based on a relatively limited
investment time frame which yielded few significant new investment
opportunities. Similarly, the progressive education concept, while
obviously a national imperative, has not yet attracted meaningful
corporate participation.
Looking ahead, we anticipate a stock market that may be somewhat
unsettled. The possibility of more moderate corporate earnings
growth may result in less favorable comparisons with the recent
past, and the 1996 economic outlook is not yet clear. Stock prices
remained near their highs of the year, and further profit-taking may
still occur. We believe that investment fundamentals still appear to
be on a sound footing which could result in continued favorable
investment opportunities. Because we recently tempered our
previously more aggressive investment activities by increasing cash
reserves, we believe the Fund is in an excellent position to
implement its ongoing growth and value investment criteria as
opportunities arise.
In Conclusion
Since the implementation of the "Concept Tomorrow" investment
strategy two years ago, Merrill Lynch Fund For Tomorrow, Inc. has
undergone changes in the stock selection process while complying
with its prospectus objective and investment requirements. The basic
element of our approach to "thematic" investing is to seek the early
discovery of, and investment in, trends that are believed to have
favorable economic implications. Among the concept sectors we
currently utilize, there are varying degrees of duration within
which we expect investments to provide returns for shareholders. If
portfolio holdings achieve our return expectations, we replace them
with new investments that are in the early phases of growth trends.
We believe that the portfolio has begun to exhibit excellent
appreciation results in many of its holdings which are achieving our
performance expectations. Through our ongoing efforts to discover
new investment concepts, we continue to seek to enhance the
appreciation potential of the Fund. We are confident that our
current thematic investment strategy is capable of achieving the
long-term growth objectives of the Fund.
We appreciate your ongoing interest in Merrill Lynch Fund For
Tomorrow, Inc., and we look forward to assisting you with your
financial needs 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, 1995
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 distribution 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% if redeemed during the first year, decreasing 1% each
year thereafter to 0% 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% contingent deferred sales charge if redeemed within
one year of purchase.
<PAGE>
* Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
Performance data for the Fund's Class A and Class B Shares are
presented in the "Average Annual Total Return" tables below. Data
for Class C and Class D Shares are presented in the "Aggregate Total
Return" tables below. Data for all the Fund's shares are presented
in the "Recent Performance Results" and "Performance Summary" tables
on pages 6 and 7.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for all of the Fund's
shares for the 12-month and 3-month periods ended October 31, 1995.
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. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/95 +26.95% +20.28%
Five Years Ended 9/30/95 +16.44 +15.19
Inception (10/26/88)
through 9/30/95 +12.26 +11.39
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/95 +25.63% +21.63%
Five Years Ended 9/30/95 +15.23 +15.23
Ten Years Ended 9/30/95 +12.70 +12.70
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94)
through 9/30/95 +24.95% +23.95%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/21/94)
through 9/30/95 +26.41% +19.77%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
PERFORMANCE DATA (continued)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed 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
1994 15.85 13.66 0.705 0.258 - 7.47
1/1/95--10/31/95 13.66 16.65 0.566 -- +26.20
------ ------
Total $8.946 Total $2.675
Cumulative total return as of 10/31/95: +116.09%**
<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>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed 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
1994 15.77 13.45 0.705 0.243 - 8.45
1/1/95--10/31/95 13.45 16.24 0.566 -- +25.10
------- ------
Total $10.801 Total $2.458
<PAGE>
Cumulative total return as of 10/31/95: +282.98%**
<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>
Performance Summary--Class C Shares
<CAPTION>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $14.08 $13.39 $0.157 $0.059 - 3.32%
1/1/95--10/31/95 13.39 16.17 0.566 -- +25.14
------ ------
Total $0.723 Total $0.059
Cumulative total return as of 10/31/95: +20.98%**
<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>
Performance Summary--Class D Shares
<CAPTION>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $14.26 $13.65 $0.157 $0.059 - 2.71%
1/1/95--10/31/95 13.65 16.60 0.566 -- +25.92
------ ------
Total $0.723 Total $0.059
<PAGE>
Cumulative total return as of 10/31/95: +22.50%**
<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>
<TABLE>
Recent Performance Results
<CAPTION>
12 Month 3 Month
10/31/95 7/31/95 10/31/94 % Change % Change
<C> <C> <C> <C> <C> <C>
ML Fund For Tomorrow, Inc. Class A Shares* $16.65 $16.82 $14.38 +21.30%(1) -1.01%(2)
ML Fund For Tomorrow, Inc. Class B Shares* 16.24 16.45 14.19 +20.01(1) -1.28(2)
ML Fund For Tomorrow, Inc. Class C Shares* 16.17 16.38 14.19 +19.51(1) -1.28(2)
ML Fund For Tomorrow, Inc. Class D Shares* 16.60 16.78 14.37 +21.03(1) -1.07(2)
Standard & Poor's 500 Index** 581.50 562.06 472.35 +23.11 +3.46
NASDAQ Industrial Index** 1,036.06 1,001.21 777.49 +19.42 -1.30
ML Fund For Tomorrow, Inc. Class A Shares--Total Return* +21.83(3) -1.01(2)
ML Fund For Tomorrow, Inc. Class B Shares--Total Return* +20.54(3) -1.28(2)
ML Fund For Tomorrow, Inc. Class C Shares--Total Return* +20.05(3) -1.28(2)
ML Fund For Tomorrow, Inc. Class D Shares--Total Return* +21.56(3) -1.07(2)
Standard & Poor's 500 Index--Total Return** +26.39 +4.11
<FN>
*Investment results 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.
(1)Percent change includes reinvestment of $0.724 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.566 per share capital
gains distributions.
(3)Percent change includes reinvestment of $0.059 per share ordinary
income dividends and $0.724 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
Personal Computers 100,000 COMPAQ Computer Corp. $ 3,428,748 $ 5,575,000 1.5%
Components 50,000 Continental Circuits Corp. 687,500 825,000 0.2
Systems 200,000 Silicon Graphics, Inc. 7,407,740 6,650,000 1.8
Software 7,000 Vantive Corporation 84,000 106,750 0.0
Components 1,400,000 Videologic Group PLC 971,040 752,794 0.2
------------ ------------ ------
12,579,028 13,909,544 3.7
Demographic Trends
Medical Devices 25,000 Biomet, Inc. 446,875 415,625 0.1
Health & Fitness 207,350 CML Group, Inc. 4,136,153 1,192,263 0.3
Specialty Services 27,000 Corrections Corp. of America 1,219,866 1,471,500 0.4
Health & Fitness 10,000 Eastbay, Inc. 150,000 210,000 0.1
Leisure & Entertainment 50,000 Harrah's Entertainment, Inc. (b) 1,235,976 1,237,500 0.3
Healthcare 50,000 Living Centers of America, Inc. 1,676,340 1,293,750 0.4
Healthcare 110,000 Patterson Dental Co. 2,815,625 2,695,000 0.7
Leisure & Entertainment 125,000 Promus Hotel Corporation 2,569,899 2,750,000 0.7
Electronics 100,000 Sensormatic Electronics Corp. 2,706,000 2,137,500 0.6
Insurance 100,000 Torchmark Corp. 4,054,900 4,150,000 1.1
Education Products 200,000 Westcott Communications, Inc. 2,823,662 2,750,000 0.7
------------ ------------ ------
23,835,296 20,303,138 5.4
Developing Foreign Economies
Telecommunications 2,000,000 CPT Telefonica Del Peru 3,936,739 3,574,581 0.9
Telecommunications 3,000,000 Champion Technology Holdings Ltd. 997,434 384,168 0.1
Building Materials 300,000 Royal Plastic Group Limited 2,686,550 4,025,345 1.1
Electronics 25,000 Samsung Electronics Company (GDR)** 3,280,000 2,954,625 0.8
------------ ------------ ------
10,900,723 10,938,719 2.9
Future Retailing
Specialty Retail 19,500 Cannondale Corp. 253,500 292,500 0.1
Specialty Retail 85,000 Daisytek International Corp. 1,808,875 2,401,250 0.6
Specialty Retail 192,600 OfficeMax, Inc. 2,872,100 4,766,850 1.3
------------ ------------ ------
4,934,475 7,460,600 2.0
<PAGE>
Global Market Expansion
Power Systems 6,950 ASEA AB 509,846 696,645 0.2
Semiconductors 73,500 ASM Lithography N.V. (ADR)* 2,122,250 3,592,312 0.9
Food & Beverage 100,000 Anheuser-Busch Companies, Inc. 5,679,438 6,600,000 1.8
Cosmetics 77,000 Avon Products, Inc. 5,540,135 5,476,625 1.5
Household Products 74,600 Colgate-Palmolive Co. 1,548,920 5,166,050 1.4
Food & Beverage 100,000 ConAgra Inc. 3,826,115 3,862,500 1.0
Specialty Retail 100,000 Gucci Group N.V. 2,200,000 3,000,000 0.8
Food & Beverage 80,000 PepsiCo, Inc. 2,644,800 4,220,000 1.1
Electronics 200,000 Philips Electronics N.V. (ADR)* 8,214,486 7,725,000 2.1
------------ ------------ ------
32,285,990 40,339,132 10.8
Healthcare Cost Containment
Health Services 200,000 Apria Healthcare Group, Inc. (a) 5,071,250 4,300,000 1.1
Pharmaceuticals 50,000 Astra AB (ADR)* 1,781,250 1,800,000 0.5
Medical Devices 100,000 Boston Scientific Corp. 4,133,851 4,212,500 1.1
Medical Devices 25,000 Cordis Corporation 2,080,000 2,762,500 0.7
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Healthcare Cost Containment (concluded)
Pharmaceuticals 50,000 Lilly (Eli) and Company $ 4,572,100 $ 4,831,250 1.3%
Pharmaceuticals 100,900 Merck & Co., Inc. 4,001,062 5,801,750 1.6
Generic Drugs 150,000 Mylan Laboratories, Inc. 2,757,780 2,850,000 0.8
Pharmaceuticals 50,000 Sandoz, AG (ADR)* 1,942,188 2,037,500 0.5
Pharmaceuticals 274,400 Schering-Plough Corp. 3,180,566 14,714,700 3.9
Medical Devices 100,000 United States Surgical Corp. 6,799,013 2,450,000 0.7
------------ ------------ ------
36,319,060 45,760,200 12.2
Industrial Outsourcing
<PAGE>
Information Services 400,000 CIS Technologies, Inc. 1,634,593 1,325,000 0.4
Office Systems 50,000 DST Systems, Inc. 1,050,000 1,050,000 0.3
Office Systems 100,000 Indigo N.V. (ADR)* 1,963,750 912,500 0.2
Specialty Services 100,000 Olsten Corp. 3,190,200 3,850,000 1.0
------------ ------------ ------
7,838,543 7,137,500 1.9
Industrial Renaissance
Automotive 141,090 Chrysler Corp. 5,598,043 7,283,771 1.9
Information Systems 100,000 Digital Equipment Corp. 4,112,790 5,412,500 1.4
Automotive 100,000 Ford Motor Co. 2,295,190 2,875,000 0.8
Automotive 100,000 General Motors Corp. 4,190,900 4,375,000 1.2
Information Systems 100,000 International Business Machines Corp. 5,658,500 9,725,000 2.6
------------ ------------ ------
21,855,423 29,671,271 7.9
Multimedia
Broadcasting Services 35,000 Accom, Inc. 315,000 284,375 0.1
Wireless Cable Television 55,000 American Telecasting, Inc. 990,000 742,500 0.2
Wireless Cable Television 102,000 CAI Wireless Systems, Inc. 1,172,000 841,500 0.2
Broadcasting Services 100,000 Carlton Communications PLC (ADR)* 3,260,625 3,050,000 0.8
Cable/Telephone 54,500 Comcast UK Cable Partners, Ltd. 817,500 701,687 0.2
Broadcasting & Publishing 200,000 The News Corp. Ltd. (ADR)* 3,095,848 3,975,000 1.1
Broadcasting & Publishing 225,000 The News Corp. Ltd. (Conv. Pfd.) (ADR)* 2,122,560 4,106,250 1.1
Wireless Cable Television 37,740 Peoples Choice TV Corp. (d) 938,500 773,670 0.2
Software 170,000 Sierra On Line, Inc. 5,961,381 6,332,500 1.7
Leisure & Entertainment 54,400 The Walt Disney Co. 1,424,668 3,134,800 0.8
------------ ------------ ------
20,098,082 23,942,282 6.4
Next Generation Technology
Leisure & Entertainment 100,000 3DO Co. 1,296,204 1,075,000 0.3
Semiconductors 100,000 Gasonics International Corp. 1,976,289 3,250,000 0.9
Telecommunications 200,000 Geotek Communications, Inc. 1,816,468 1,650,000 0.4
Building Materials 50,000 ICC Technologies, Inc. 655,250 587,500 0.2
Medical Devices 150,000 Keravision, Inc. 1,942,074 1,800,000 0.5
Pollution Technology 300,000 Molten Metal Technology, Inc. 5,221,520 11,550,000 3.1
Pollution Technology 270,000 Thermo Electron Corp. 6,840,000 12,420,000 3.3
Medical Devices 100,000 ThermoLase Corp. 2,525,000 2,037,500 0.5
Medical Equipment 100,000 Thermospectra Corp. 1,547,300 1,625,000 0.4
Medical Equipment 166,000 Thermotrex Corp. 2,599,763 5,955,250 1.6
Electronics 150,000 Whittaker Corp. 2,966,998 2,981,250 0.8
------------ ------------ ------
29,386,866 44,931,500 12.0
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Strategic Growth Opportunities
Pharmaceuticals 50,000 American Home Products Corp. $ 3,875,049 $ 4,431,250 1.2%
Apparel 225,000 Chic by H.I.S., Inc. 2,846,059 1,237,500 0.3
Specialty Retail 100,000 Mattel, Inc. 2,232,740 2,875,000 0.8
Restaurant 100,000 Wendy's International, Inc. 1,642,713 1,987,500 0.5
------------ ------------ ------
10,596,561 10,531,250 2.8
Telecommunications
Components 150,000 ANTEC Corp. 3,557,150 1,856,250 0.5
Components 100,000 Andrew Corp. 4,677,375 4,225,000 1.1
Components 200,000 Boston Technology, Inc. 2,967,630 2,750,000 0.7
Telecommunications 281,400 Frontier Corp. (c) 2,157,975 7,597,800 2.0
Components 300,000 Inter-Tel, Inc. 3,537,612 4,350,000 1.2
Telecommunications 150,000 MCI Communications Corp. 3,895,310 3,731,250 1.0
Telecommunications 100,000 MFS Communications Co., Inc. 2,536,850 4,037,500 1.1
Paging Services 305,000 Metrocall, Inc. 4,988,845 7,548,750 2.0
Components 100,000 Motorola, Inc. 5,778,000 6,562,500 1.8
Components 349,400 Nokia Corp. AB (ADR)* 12,108,398 19,479,050 5.2
Cellular Communication 200,000 Palmer Wireless, Inc. 2,984,487 4,550,000 1.2
------------ ------------ ------
49,189,632 66,688,100 17.8
Total Stocks 259,819,679 321,613,236 85.8
<PAGE>
Face
Amount Short-Term Securities
Commercial $ 6,000,000 Corporate Asset Funding Co. Inc., 5.70%
Paper*** due 11/29/1995 5,973,400 5,973,400 1.6
15,725,000 General Electric Capital Corp., 5.85%
due 11/01/1995 15,725,000 15,725,000 4.2
10,000,000 National Fleet Funding Corp., 5.75% due
11/28/1995 9,956,875 9,956,875 2.7
9,000,000 USAA Capital Corp., 5.66% due 12/28/1995 8,919,345 8,919,345 2.4
19,000,000 Xerox Corp., 5.69% due 12/08/1995 18,888,887 18,888,887 5.0
Total Short-Term Securities 59,463,507 59,463,507 15.9
Total Investments $319,283,186 381,076,743 101.7
============
Liabilities in Excess of Other Assets (6,284,270) (1.7)
------------ ------
Net Assets $374,792,473 100.0%
============ ======
Net Asset Class A--Based on net assets of $30,659,564 and 1,841,795 shares outstanding $ 16.65
Value: ============
Class B--Based on net assets of $111,769,771 and 6,881,987 shares outstanding $ 16.24
============
Class C--Based on net assets of $5,378,868 and 332,712 shares outstanding $ 16.17
============
Class D--Based on net assets of $226,984,270 and 13,673,101 shares outstanding $ 16.60
============
<FN>
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***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.
(a)Formerly known as Homedco Group, Inc.
(b)Formerly known as The Promus Companies, Inc.
(c)Formerly known as ALC Communications, Corp.
(d)Formerly known as Preferred Entertainment, Inc.
</TABLE>
<PAGE>
PORTFOLIO INFORMATION
For the Quarter Ended October 31, 1995
Percent of
Ten Largest Equity Holdings Net Assets
Nokia Corp. AB (ADR) 5.2%
Schering-Plough Corp. 3.9
Thermo Electron Corp. 3.3
Molten Metal Technology, Inc. 3.1
International Business Machines Corp. 2.6
The News Corp. Ltd. (ADR)* 2.2
Philips Electronics N.V. (ADR) 2.1
Frontier Corp. 2.0
Metrocall, Inc. 2.0
Chrysler Corp. 1.9
[FN]
*Includes Common and Convertible Preferred Stock.
Additions
Accom, Inc.
Astra AB (ADR)
Avon Products, Inc.
Biomet, Inc.
Boston Scientific Corp.
CIS Technologies, Inc.
CPT Telefonica Del Peru
Continental Circuits Corp.
Cordis Corporation
DST Systems, Inc.
Digital Equipment Corp.
Eastbay, Inc.
*Electronics For Imaging
Gucci Group N.V.
Indigo N.V. (ADR)
Lilly (Eli) and Company
Patterson Dental Co.
Sandoz, AG (ADR)
Sierra On Line, Inc.
Silicon Graphics, Inc.
ThermoLase Corp.
Thermospectra Corp.
Vantive Corp.
<PAGE>
Deletions
AirTouch Communications, Inc.
Apple Computer, Inc.
Authentic Fitness Corp.
Chiron Corp.
Circus Circus Enterprises, Inc.
Eastman Chemical Co.
Education Alternatives, Inc.
*Electronics For Imaging
Kenetech Corp.
Kimberly-Clark Corp.
Magna International, Inc.
Maxis, Inc.
Ontrack Systems, Inc.
Rohm & Haas Co.
Sun Microsystems, Inc.
Tiffany & Co.
USA Mobile Communications Holdings, Inc.
UUNET Technologies, Inc.
WMS Industries, Inc.
Wal-Mart Stores, Inc.
[FN]
*Added and deleted in the same quarter.
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Ronald W. Forbes, Director
Cynthia 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
<PAGE>
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, New York 10286
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
