MERRILL LYNCH
FUND FOR
TOMORROW, INC.
FUND LOGO
Quarterly Report
April 30, 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.
Merrill Lynch
Fund For Tomorrow, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MERRILL LYNCH FUND FOR TOMORROW, INC.
Concept Sectors
Pie graph depicting Concept Sectors As a Percentage of Net Assets
As of April 30, 1995:
Computer Technologies--5.0%
Demographic Trends--3.9%
Developing Foreign Economies--1.0%
Environmental Solutions--2.2%
Extended Economic Cycles--4.4%
Future Retailing--4.1%
Global Market Expansion--8.1%
Healthcare Cost Containment--9.7%
Industrial Outsourcing--3.4%
Industrial Renaissance--8.6%
Mulimedia--8.1%
Next Generation Technology--6.3%
Progressive Education--3.0%
Strategic Growth Opportunities--3.3%
Telecommunications--20.5%
Cash--8.4%
[FN]
*Net of other assets less liabilities.
Growth Stock Characteristics As of April 30, 1995
Bar Graph depicting Growth Stock Characteristics as a % of Equity
Holdings:
Emerging Growth 10.6% 21.6%
Established Growth 17.3% 17.5%
Stable Growth 16.4% 16.6%
<PAGE>
DEAR SHAREHOLDER
Increasing signs of slowing economic growth led to higher US stock
and bond prices during the April quarter. Although gross domestic
product was reported to have increased at a revised 5.1% rate during
the final quarter of 1994, declines in other indicators such as new
home sales and durable goods orders registered thus far in 1995 have
led investors to anticipate that the economy is losing enough
momentum to keep inflation under control and preclude further
significant monetary policy tightening by the Federal Reserve Board.
A further indication of a slowing economy was the reported decline
in the Index of Leading Economic Indicators for March.
As US stock and bond markets have risen, the value of the US dollar
has reached new lows relative to the yen and the Deutschemark.
Persistent trade deficits and exports of capital from the United
States have kept the US currency in a decade-long decline relative
to the Japanese and German currencies. Over the longer term, since
the United States has the highest productivity among industrialized
nations and among the lowest labor costs, demand for US dollar-
denominated assets may improve. However, a reduction of the still-
widening US trade deficit may be necessary before the US dollar
appreciates substantially relative to the yen and the Deutschemark.
The first months of 1995 were very positive for the US stock and
bond markets. Continued signs of a moderating expansion and well-
contained inflationary pressures would provide further assurance
that the peak in interest rates is behind us, creating a stronger
foundation for higher stock and bond prices. On the other hand,
indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
Portfolio Strategy
Strong corporate earnings and a favorable interest rate environment
served to bolster investor confidence during Merrill Lynch Fund For
Tomorrow, Inc.'s first fiscal quarter ended April 30, 1995. Most
world stock markets performed well during the April quarter,
following a period of weak stock prices in the January quarter. In
particular, strong advances occurred within the basic industry
sectors along with energy and, most notably, technology issues.
Continued signs of a moderate slowdown in economic growth, or what
has been called a soft landing, have given credence to a more
favorable earnings outlook for cyclical growth companies. Leading
this group, technology stocks showed outstanding price gains which
resulted from a combination of strong earnings and relatively modest
valuations. The declining value of the US dollar also helped the
earnings of most companies with extensive international operations.
<PAGE>
While Merrill Lynch Fund For Tomorrow, Inc. participated in many of
the sector advances in the stock market, the Fund benefited
considerably from the strong performance of a wide range of
individual holdings during the April quarter. Gains of more than 20%
were recorded by 20 stocks in the portfolio. Most noteworthy among
the larger holdings were Philips Electronics N.V., International
Business Machines Corp., The News Corp. Ltd., Thermo Electron Corp.,
ALC Communications Corp. and USA Mobile Communications Holdings,
Inc. Many of the smaller holdings in the Fund also gained
recognition for their growth potential and experienced strong price
appreciation during the April quarter. Although this segment of the
portfolio performed well as a whole, some of our small stock
positions which have longer-term growth objectives showed interim
price weakness, which we believe was at least partly a result of
lower earnings visibility. Our strategy has been to diversify the
Fund's exposure to emerging growth companies in order to seek to
achieve above-average returns and control the increased risk
associated with these investments. Accordingly, while many of these
holdings are relatively small in terms of individual weightings,
collectively, they comprise a significant part of the portfolio.
Our investment strategy during the April quarter continued to
emphasize smaller-capitalization companies. As noted in previous
reports to shareholders, we believe this sector has greater long-
term growth potential and often experiences superior earnings gains
during favorable economic conditions. As shown in the "Growth Stock
Characteristics" chart on page 1 of this report to shareholders, the
holdings of companies with earlier-phase growth characteristics
accounted for 49.5% of the portfolio at the end of the April
quarter, up from 47.2% at the close of the January quarter. While
our small-stock focus has occurred across many industries, the
primary concentration recently has been among technology companies,
more specifically, information processing companies. Five of the
fifteen new additions to the Fund's portfolio are in this category.
Some other investment concept categories showed significant changes
in concentration. Our reduction of automotive holdings and stocks in
Mexico reduced weightings in industrial renaissance and developing
foreign economies, while further reductions in basic materials
decreased the extended economic cycles concept weighting. The
largest increase in the portfolio occurred within the
telecommunications concept, which rose from 14.4% of net assets to
20.5% since the end of the January quarter. While price appreciation
accounted for a large part of this increased weighting, we added new
investments to this concept. Accordingly, our commitment to the long-
term dynamics of telecommunications has been clearly established.
<PAGE>
With an increased emphasis on emerging growth companies, our
research during the April quarter led to the development of a new
investment concept called "Next Generation Technology." The basis
for this concept is a recognition of the investment potential
derived from early discovery of and participation in new
technologies that create new markets, enhance current products or
displace existing technology. We feel that this new investment
concept offers an excellent platform for future investment
opportunities. Initially, we selected four companies whose products
are especially well suited for future market demands. Gasonics
International Corp. is a proprietary manufacturer of photo-resist
equipment for the integrated circuit market. Geotek Communications
Inc. is a provider of real-time wireless mobile information systems
to business subscribers. ICC Technologies, Inc. has developed a
revolutionary air-conditioning system which does not deplete the
ozone layer and is more energy efficient than any existing
technology. The fourth new holding in this concept is 3DO Co., which
recently unveiled its new 64-bit interactive entertainment
technology which has the potential to render current systems
obsolete. In addition to these new investments, we reclassified our
existing holdings of Thermo Electron Corp. and its 50%-owned
Thermotrex Corp. Formerly, we held these investments under other
concept rationale, but because of their advanced technology-oriented
corporate structures, we believed they would be ideally suited for
our new investment concept.
Among the other additions to the portfolio during the April quarter,
our investment activity tended to emphasize computer technology,
telecommunications and demographic trends. In Computer Technologies,
we added Compaq Computer Corp., the leading US personal computer
company, while we added Finland-based ASM Lithography N.V., which
manufactures semiconductor equipment primarily for computer makers,
to our Global Market Expansion concept. Additions to the Fund's
Telecommunications concept were Boston Technology, Inc., in voice
and information processing, and Palmer Wireless, Inc., a regional
cellular telephone operator. Three companies supple-mented our
Demographic Trends concept: Circus Circus Enterprises, Inc., a major
casino company; Corrections Corp. of America, a private prison
facility operator; and Sensormatic Electronics Corporation, a
company that is expanding its retail security business into broader
commercial applications. The remaining portfolio additions included
Homedco Group, Inc. in home healthcare, Whittaker Corp. in
multimedia products, along with Tiffany & Co. and Mattel, Inc., a
specialty retailer and toy manufacturer, respectively, both placed
in our Strategic Growth Opportunities category.
<PAGE>
Looking ahead, we continue to view the stock market environment
favorably based on a slow growth, low interest rate economy.
However, we recognize that the earnings gains of the recent past are
not likely to be sustainable at such a strong pace and that
individual economic sectors will experience different degrees of
moderating growth. Investors should also be mindful of the
possibility that stock prices could encounter increased volatility
following the record highs set recently. Therefore, we believe that
company earnings reports will be among the key elements of near-term
stock performance, along with increased attention on value
investing. Accordingly, our strategy going forward is to put a
significant emphasis on earnings visibility and a company's capacity
to grow during a more moderate economic environment. However, our
continued strategy for the longer term is to focus on the developing
trends which are being driven by unique technological products and
services that may not be fully recognized in today's stock market.
In Conclusion
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.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent P. Dileo)
Vincent P. Dileo
Vice President and Portfolio Manager
May 17, 1995
<PAGE>
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.
* 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 "Performance Summary" and "Average Annual Total
Return" tables on pages 5 and 6. Data for Class C and Class D Shares
are presented in the "Aggregate Total Return" tables on page 5. Data
for all the Fund's shares are presented in the "Recent Performance
Results" table on page 5.
The "Recent Performance Results" table 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 April 30, 1995 and
for Class C and Class D Shares for the since inception and 3-month
periods ended April 30, 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.
<PAGE>
PERFORMANCE DATA (continued)
<TABLE>
Recent Performance Results
<CAPTION>
12 Month 3 Month
4/30/95 1/31/95 4/30/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Fund For Tomorrow, Inc. Class A Shares* $14.75 $13.55 $14.64 + 6.17%(1) + 8.86%
ML Fund For Tomorrow, Inc. Class B Shares* 14.48 13.33 14.52 + 5.15(1) + 8.63
ML Fund For Tomorrow, Inc. Class C Shares* 14.41 13.28 14.08 + 3.58(2) + 8.51
ML Fund For Tomorrow, Inc. Class D Shares* 14.73 13.54 14.26 + 4.52(2) + 8.79
Standard & Poor's 500 Index** 514.71 470.42 450.91 +14.15 + 9.41
NASDAQ Industrial Index** 811.46 749.87 764.39 + 6.16 + 8.21
ML Fund For Tomorrow, Inc. Class A Shares--Total Return* + 8.18(3) + 8.86
ML Fund For Tomorrow, Inc. Class B Shares--Total Return* + 7.04(4) + 8.63
ML Fund For Tomorrow, Inc. Class C Shares--Total Return* + 4.04(5) + 8.51
ML Fund For Tomorrow, Inc. Class D Shares--Total Return* + 4.98(5) + 8.79
Standard & Poor's 500 Index--Total Return** +17.37 +10.08
<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.
++Investment results shown for Class C and Class D Shares are since
inception (10/21/94).
(1)Percent change includes reinvestment of $0.705 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.157 per share capital
gains distributions.
(3)Percent change includes reinvestment of $0.258 per share ordinary
income dividends and $0.705 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.243 per share ordinary
income dividends and $0.705 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.059 per share ordinary
income dividends and $0.157 per share capital gains distributions.
</TABLE>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/95 +3.93% -1.52%
Five Years Ended 3/31/95 +8.85 +7.68
Inception (10/26/88)
through 3/31/95 +9.39 +8.48
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/95 +2.84% -1.01%
Five Years Ended 3/31/95 +7.73 +7.73
Ten Years Ended 3/31/95 +9.90 +9.90
[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 3/31/95 +0.36% -0.63%
[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 3/31/95 +1.21% -4.11%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
PERFORMANCE DATA (concluded)
<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--4/30/95 13.66 14.75 -- -- + 7.98
------ ------
Total $8.380 Total $2.675
Cumulative total return as of 4/30/95: +84.90%**
<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
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--4/30/95 13.45 14.48 -- -- + 7.66
------- ------
Total $10.235 Total $2.458
Cumulative total return as of 4/30/95: +229.58%**
<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>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
Computer Technologies
<S> <C> <S> <C> <C> <C>
Electronics 50,000 American Power Conversion Corp. $ 918,750 $ 837,500 0.3%
Personal Computers 100,000 Apple Computer, Inc. 4,868,130 3,812,500 1.3
Personal Computers 100,000 Compaq Computer Corp. 3,428,748 3,800,000 1.3
Components 140,000 Creative Technology, Ltd. (Ordinary) 1,965,000 1,400,000 0.5
Information Systems 50,000 Sun Microsystems, Inc. 1,096,250 1,981,250 0.7
Components 1,400,000 Videologic Group PLC 971,040 957,950 0.3
Information Systems 50,000 Wonderware Corp. 1,025,000 1,637,500 0.6
------------ ------------ ------
14,272,918 14,426,700 5.0
Demographic Trends
Health & Fitness 307,350 CML Group, Inc. 5,535,775 2,228,288 0.8
Leisure & Entertainment 50,000 Carnival Corp. (Class A) 1,055,190 1,243,750 0.4
Leisure & Entertainment 50,000 Circus Circus Enterprises, Inc. 1,612,688 1,656,250 0.6
Specialty Services 16,000 Corrections Corp. of America 456,960 522,000 0.2
Leisure & Entertainment 50,000 The Promus Companies, Inc. 1,724,875 1,925,000 0.7
Electronics 50,000 Sensormatic Electronics Corporation 1,403,000 1,487,500 0.5
Leisure & Entertainment 100,000 WMS Industries Inc. 2,696,774 1,887,500 0.7
------------ ------------ ------
14,485,262 10,950,288 3.9
Developing Foreign Economies
Telecommunications 3,000,000 Champion Technology Holdings Ltd. 997,434 228,653 0.1
Building Materials 250,000 Royal Plastic Group Limited 2,049,180 2,666,029 0.9
------------ ------------ ------
3,046,614 2,894,682 1.0
Environmental Solutions
Energy 178,000 Kenetech Corp. 2,589,357 1,869,000 0.7
Pollution Technology 250,000 Molten Metal Technology, Inc. 4,087,770 4,312,500 1.5
------------ ------------ ------
6,677,127 6,181,500 2.2
<PAGE>
Extended Economic Cycles
Machinery 50,000 Caterpillar, Inc. 2,695,963 2,925,000 1.0
Machinery 50,000 Deere & Co. 3,405,500 4,100,000 1.4
Chemicals 50,000 Eastman Chemical Co. 2,679,687 2,837,500 1.0
Chemicals 50,000 Rohm & Haas Co. 3,329,500 2,906,250 1.0
------------ ------------ ------
12,110,650 12,768,750 4.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
Future Retailing
<S> <C> <S> <C> <C> <C>
Specialty Retail 100,000 Authentic Fitness Corp. $ 1,556,250 $ 1,650,000 0.6%
Specialty Retail 19,500 Cannondale Corp. 253,500 297,375 0.1
Private Label 75,000 Cott Corp. 2,108,753 684,375 0.2
Specialty Retail 30,000 Daisytek International Corp. 450,000 637,500 0.2
Private Label 49,300 Nutramax Products, Inc. 690,900 400,563 0.1
Specialty Retail 88,400 OfficeMax, Inc. 1,679,600 2,265,250 0.8
Specialty Retail 75,000 Variflex, Inc. 1,152,500 1,181,250 0.4
Specialty Retail 200,000 Wal-Mart Stores, Inc. 5,258,570 4,750,000 1.7
------------ ------------ ------
13,150,073 11,866,313 4.1
Global Market Expansion
Power Systems 50,000 ASEA AB 3,667,955 4,214,623 1.5
Semiconductors 33,500 ASM Lithography N.V. (ADR)* 603,000 908,687 0.3
Household Products 74,600 Colgate-Palmolive Co. 1,548,920 5,240,650 1.8
Household Products 50,000 Kimberly-Clark Corp. 2,419,312 2,831,250 1.0
Food & Beverage 80,000 PepsiCo, Inc. 2,644,800 3,330,000 1.2
Electronics 100,000 Philips Electronics N.V. (ADR)* 3,231,000 3,850,000 1.3
Consumer Appliances 50,000 Whirlpool Corp. 2,543,663 2,737,500 1.0
------------ ------------ ------
16,658,650 23,112,710 8.1
Healthcare Cost Containment
Biotechnology 40,136 Chiron Corp. 2,272,701 2,207,480 0.8
Health Services 57,500 Homedco Group, Inc. 2,907,500 3,263,125 1.1
Pharmaceuticals 150,900 Merck & Co., Inc. 5,685,639 6,469,837 2.3
Generic Drugs 100,000 Mylan Laboratories Inc. 2,757,780 3,075,000 1.1
Pharmaceuticals 137,200 Schering-Plough Corp. 3,180,566 10,341,450 3.6
Medical Equipment 100,000 United States Surgical Corp. 6,799,013 2,225,000 0.8
------------ ------------ ------
23,603,199 27,581,892 9.7
<PAGE>
Industrial Outsourcing
Automotive Components 185,000 Magna International, Inc. 2,968,125 6,405,625 2.2
Specialty Services 100,000 Olsten Corp. 3,190,200 3,412,500 1.2
------------ ------------ ------
6,158,325 9,818,125 3.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
Industrial Renaissance
<S> <C> <S> <C> <C> <C>
Automotive 185,600 Chrysler Corp. $ 6,620,108 $ 8,004,000 2.8%
Automotive 100,000 Ford Motor Co. 2,295,190 2,700,000 0.9
Automotive 100,000 General Motors Corp. 4,190,900 4,512,500 1.6
Information Systems 100,000 International Business Machines Corp. 5,658,500 9,475,000 3.3
------------ ------------ ------
18,764,698 24,691,500 8.6
Multimedia
Wireless Cable Television 55,000 American Telecasting, Inc. 990,000 783,750 0.3
Wireless Cable Television 102,000 CAI Wireless Systems, Inc. 1,172,000 1,275,000 0.4
Cable/Telephone 75,000 Comcast UK Cable Partners, Ltd. 1,125,000 1,031,250 0.4
Broadcasting & Publishing 450,000 The News Corp. Ltd. (ADR)* 6,907,690 8,775,000 3.1
Broadcasting & Publishing 225,000 The News Corp. Ltd. (Conv. Pfd.)
(ADR)* 2,122,560 4,050,000 1.4
Wireless Cable Television 50,000 Preferred Entertainment, Inc. 938,500 900,000 0.3
Leisure & Entertainment 54,400 The Walt Disney Co. 1,424,668 3,012,400 1.1
Electronics 150,000 Whittaker Corp. 2,966,998 3,150,000 1.1
------------ ------------ ------
17,647,416 22,977,400 8.1
Next Generation Technology
Leisure & Entertainment 100,000 3DO Co. 1,296,204 1,312,500 0.5
Semiconductors 100,000 Gasonics International Corp. 1,976,289 2,275,000 0.8
Telecommunications 50,000 Geotek Communications Inc. 450,000 450,000 0.2
Building Materials 50,000 ICC Technologies, Inc. 655,250 575,000 0.2
Multi-Industry 180,000 Thermo Electron Corp. 6,840,000 9,697,500 3.4
Medical Equipment 166,000 Thermotrex Corp. 2,599,763 3,299,250 1.2
------------ ------------ ------
13,817,506 17,609,250 6.3
Progressive Education
Education Services 125,000 Education Alternatives, Inc. 3,390,297 2,093,750 0.7
Education Products 90,000 Scholastic Corporation 3,539,749 5,017,500 1.8
Education Products 100,000 Westcott Communications, Inc. 1,353,037 1,387,500 0.5
------------ ------------ ------
8,283,083 8,498,750 3.0
Strategic Growth Opportunities
Apparel 225,000 Chic by H.I.S., Inc. 2,846,059 2,390,625 0.8
Leisure & Entertainment 100,000 Mattel, Inc. 2,232,740 2,375,000 0.8
Specialty Retailing 100,000 Tiffany & Co. 3,039,463 3,212,500 1.1
Restaurant 100,000 Wendy's International, Inc. 1,642,712 1,700,000 0.6
------------ ------------ ------
9,760,974 9,678,125 3.3
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Shares Percent of
Concept Tomorrow Held Stocks Cost Value Net Assets
Telecommunications
<S> <C> <S> <C> <C> <C>
Telecommunications 140,700 ALC Communications Corp. $ 2,157,975 $ 5,364,187 1.9%
Components 150,000 ANTEC Corp. 3,557,150 3,675,000 1.3
Cellular Communications 200,000 AirTouch Communications, Inc. 4,600,000 5,375,000 1.9
Components 50,000 Boston Technology, Inc. 702,000 750,000 0.3
Components 235,000 Inter-Tel, Inc. 2,456,987 3,466,250 1.2
Telecommunications 150,000 MCI Communications Corp. 3,895,310 3,243,750 1.1
Telecommunications 100,000 MFS Communications Co., Inc. 2,536,850 3,575,000 1.3
Paging Systems 300,000 Metrocall, Inc. 4,821,474 5,287,500 1.8
Components 100,000 Motorola, Inc. 5,778,000 5,687,500 2.0
Components 350,000 Nokia Corp. AB (Conv. Pfd.)(ADR)* 12,125,313 14,350,000 5.0
Cellular Communications 200,000 Palmer Wireless, Inc. 2,984,487 3,350,000 1.2
Paging Systems 297,000 USA Mobile Communications
Holdings, Inc. 2,807,500 4,417,875 1.5
------------ ------------ ------
48,423,046 58,542,062 20.5
Total Stocks 226,859,541 261,598,047 91.6
<CAPTION>
Face
Amount Short-Term Securities
<S> <C> <S> <C> <C> <C>
Commercial $ 4,574,000 General Electric Capital Corp.,
Paper** 5.93% due 5/01/1995 4,572,493 4,572,493 1.6
8,000,000 Goldman Sachs Group L.P., 5.95%
due 5/24/1995 7,966,944 7,966,944 2.8
5,000,000 IBM Credit Corp., 5.96% due 5/10/1995 4,990,895 4,990,895 1.7
US Government & 6,000,000 Federal National Mortgage Association,
Agency Obligations** 5.86% due 6/01/1995 5,967,770 5,967,770 2.1
Total Short-Term Securities 23,498,102 23,498,102 8.2
Total Investments $250,357,643 285,096,149 99.8
============
Other Assets Less Liabilities 485,609 0.2
------------ ------
Net Assets $285,581,758 100.0%
============ ======
<PAGE>
Net Asset Class A--Based on net assets of $8,341,481 and
Value: 565,613 shares outstanding $ 14.75
============
Class B--Based on net assets of $89,157,152 and
6,158,393 shares outstanding $ 14.48
============
Class C--Based on net assets of $90,187 and 6,257
shares outstanding $ 14.41
============
Class D--Based on net assets of $187,992,938 and
12,763,613 shares outstanding $ 14.73
============
<FN>
*American Depositary Receipts (ADR).
**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>
PORTFOLIO INFORMATION
For the Quarter Ended April 30, 1995
Percent of
Ten Largest Equity Holdings Net Assets
Nokia Corp. AB (Conv. Pfd.)(ADR) 5.0%
The News Corp. Ltd. (ADR)* 4.5
Schering-Plough Corp. 3.6
Thermo Electron Corp. 3.4
International Business Machines Corp. 3.3
Chrysler Corp. 2.8
Merck & Co., Inc. 2.3
Magna International, Inc. 2.2
Motorola, Inc. 2.0
AirTouch Communications, Inc. 1.9
[FN]
*Includes Convertible Preferred Stock.
<PAGE>
Additions
3DO Co.
ASM Lithography N.V. (ADR)
Boston Technology, Inc.
++C*ATS Software
Compaq Computer Corp.
Circus Circus Enterprises, Inc.
Corrections Corp. of America
++Diamond Multimedia System
++Electronic Arts, Inc.
Gasonics International Corp.
Geotek Communications Inc.
++Grupo Situr, S.A. de C.V. (Ordinary)
Homedco Group, Inc.
ICC Technologies, Inc.
Mattel, Inc.
Palmer Wireless, Inc.
Sensormatic Electronics Corporation
Tiffany & Co.
Whittaker Corp.
Deletions
Bethlehem Steel Corp.
++C*ATS Software
++Diamond Multimedia System
++Electronic Arts, Inc.
Grupo Carso, S.A. de C.V. "A1"
++Grupo Situr, S.A. de C.V. (Ordinary)
Imperial Chemical Industries PLC (ADR)
Interim Services, Inc.
Istituto Mobiliare Italiano S.p.A. (ADR)
Lyondell Petrochemical Co.
Mirage Resorts, Inc.
The Perrigo Company, Inc.
Pfizer, Inc.
Telefonos de Mexico, S.A. de C.V. (ADR)
Thermo Ecotek (Rights)
Time Warner, Inc.
VLSI Technology, Inc.
[FN]
++Added and deleted in the same quarter.
<PAGE>
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
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
