MERRILL LYNCH
FUND FOR
TOMORROW, INC.
FUND LOGO
Quarterly Report
April 30, 1996
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.
Statements and other information herein are as dated and are subject
to change.
<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 April 30, 1996
Computer Technologies 4.3%
Demographic Trends 5.3%
Developing Foreign Economies 4.4%
Future Retailing 2.4%
Global Market Expansion 8.0%
Healthcare Cost Containment 13.6%
Industrial Outsourcing 3.4%
Industrial Renaissance 8.3%
Multimedia 6.4%
Next Generation Technology 10.8%
Strategic Growth Opportunities 4.4%
Telecommunications 16.6%
Cash* 12.1%
<PAGE>
[FN]
*Net of liabilities in excess of other assets.
Bar graph depicting Growth Stock Characteristics as of April 30, 1996 as of a
% of Equity Holdings:
Emerging Growth 9.3% 14.5%
Established Growth 23.8% 14.5%
Stable Growth 21.6% 16.3%
DEAR SHAREHOLDER
Investor perceptions regarding the US economy changed over the
course of the April quarter. In February, it appeared that the US
economy was losing momentum. Lackluster retail sales, increases in
initial unemployment claims (along with weak job and income growth),
and evidence of slowing in the manufacturing sector all suggested
that the rate of economic growth was decelerating, with some
forecasters even suggesting the possibility of an imminent
recession.
However, the consensus outlook for the rate of future economic
growth changed dramatically with the report of stronger-than-
expected employment data for February and March. As a result,
investors began to anticipate renewed economic growth. Long-term
interest rates rose, and the Federal Reserve Board left monetary
policy on hold. Adding to investor concerns was the report that the
Knight Ridder-Commodity Research Bureau Index was near an eight-year
high, largely because of an increase in agricultural prices and an
upward spike in the price of crude oil.
Investors are likely to continue to focus on the probable direction
of economic activity and Federal Reserve Board monetary policy in
the weeks ahead. At this time, inflationary pressures do not seem to
be building and the capital spending, housing and consumption
sectors are still relatively weak, which suggest that the economy is
not on the verge of overheating. Nevertheless, it is likely that
further indications of stronger economic activity in the weeks ahead
may add to investor concerns that accelerating economic activity
could lead to higher inflation and interest rates.
<PAGE>
Portfolio Matters
Throughout the quarter ended April 30, 1996, equity markets
displayed a high degree of volatility while showing an uptrend for
the period as a whole. The total return for the unmanaged Standard &
Poor's 500 Composite Index was +3.39%, led by above-average gains in
economically sensitive industries such as capital goods, energy and
basic materials. The pattern of performance in this broadly based
index was substantially the reverse of the quarter ended January 31,
1996 when the more defensive sectors outperformed cyclicals.
Also in contrast with the January quarter, smaller-capitalization
companies dramatically surpassed the price gains witnessed among the
larger-capitalization issues. Led primarily by the technology
sector, the unmanaged NASDAQ Industrial Index gained 15.40% during
the quarter ended April 30, 1996. Major foreign stock markets tended
to show mixed results with Western Europe posting gains similar to
the broader US market while above-average performance was evident in
Latin America and Asia. Total returns for Merrill Lynch Fund For
Tomorrow, Inc.'s Class A, Class B, Class C and Class D Shares for
the quarter ended April 30, 1996 were +8.24%, +7.98%, +8.02 and
+8.15%, respectively. (Results shown do not reflect sales charges
and would be lower if charges were included. For complete
performance information, see pages 4--6 of this report to
shareholders.)
The high volatility in the US stock market was probably associated
with a variety of mixed signals on the economy. Following earlier
consensus expectations of a potentially significant slowdown in
business activity, more recent evidence pointed to continued growth
in 1996. However, with a more favorable economic outlook, the
prospect of rising inflation and interest rates periodically
dampened investor enthusiasm. In addition, expectations for
corporate profits were somewhat cautious despite a pattern of
positive earnings reports. However, developments concerning both the
economy and corporate profits generally favored equity investments
during the April quarter.
The relative strength in the small-market capitalization sector of
the stock market was clearly reflected in many of the Fund's
holdings. In general, the Fund's investments within this sector were
the best performers during the quarter ended April 30, 1996. For
example, among the Fund's 30 stocks appreciating more than 20%, 25
could be classified as small-capitalization companies. Several
holdings within this group were acquired through initial public
offerings (IPOs), and performed exceptionally well as trading in the
open market commenced. We were active in the IPO market for the past
six months because many of these companies offer extremely
attractive growth potential and fit well in our small-company
investment strategy.
<PAGE>
Some of the weaker areas during the April quarter were comprised of
companies typically associated with more stable earnings and more
defensive characteristics. It is apparent that the prospect of
extended economic growth in 1996 reduced some of the attraction for
these investments relative to cyclical and emerging growth issues.
Among the underperforming industry groups were pharmaceutical
companies, food and household products. Although showing modest
gains overall, the Fund's relatively heavy weighting in healthcare
did not produce a particularly favorable contribution to overall
performance as in previous quarters. However, stable growth stocks
are important in maintaining a desirable balance between risk and
return within the portfolio, as well as for augmenting longer-term
appreciation potential.
Our investment strategy during the quarter ended April 30, 1996 was
based on a reasonably stable economic outlook but a somewhat
cautious position on stock prices. We were convinced that the
economic momentum of 1995 would carry through well into the current
year at a moderate pace. However, we were concerned that stock
prices might pause in their lengthy uptrend because of profit-taking
and higher interest rates. The combination of these elements led us
to a stock-specific investment strategy which concentrated on buying
smaller, emerging growth companies with strong earnings potential
and companies with substantially less recognized growth prospects.
New investments during the April quarter spanned a diverse range of
industries such as data processing, entertainment, the Internet,
finance, telecommunications and specialty retailing, among others.
For example, we took positions in CellularVision USA, Inc., a unique
provider of cellular television and Internet access services;
InterCel, Inc., a regional personal communication system company;
Pacific Telesis Group, Inc., the major West Coast telephone company;
and, DSP Communications, Inc., which produces wireless
telecommunication equipment. Among other investments, initial
positions were established in Party City Corporation, a niche
retailer specializing in party supplies, and Penske Motorsports,
Inc., which is a major factor in one of the fastest-growing
spectator sporting events in the country: auto racing.
During the quarter ended April 30, 1996, a significant amount of
selling activity followed an ongoing program of profit-taking among
holdings that met our appreciation objectives or where upside
potential was less than originally expected. We also sold several
positions that we held for relatively brief periods which is not
typical of our longer-term strategy. However, because of extremely
rapid price appreciation, and considering the volatility in the
stock market, profit-taking seemed appropriate. Overall, the Fund's
invested position in common stocks was higher for most of the April
quarter compared to the prior period, but we began to increase cash
reserves as the quarter ended. The result was a cash position of
12.1% of net assets at April 30, 1996, which we believe will better
enable us to take advantage of future opportunities.
<PAGE>
In the months ahead, we believe that the economy will continue to
exhibit a generally stable pattern of moderate growth, accompanied
by a modestly higher trend of inflation and interest rates, and
reasonably favorable corporate profits. Counterbalancing these
fundamentals, we look for continued above-average stock market
volatility resulting from ongoing concern that the economic cycle
may be nearing a plateau. We believe our current stock-specific
investment strategy is especially suited to take advantage of
opportunities in the current environment. Over the longer term we
remain firmly committed to our "concept" investment strategy which
seeks to identify important macroeconomic trends in economics,
business, technology, demographics and global developments, which
ultimately relate to consumer demand, as the foundation for the
Fund's capital appreciation objectives.
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
<PAGE>
May 21, 1996
PERFORMANCE DATA
About Fund Performance
Investors are 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 approximately 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).
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**
<PAGE>
Class A Shares*
Year Ended 3/31/96 +30.11% +23.28%
Five Years Ended 3/31/96 +11.62 +10.42
Inception (10/26/88)
through 3/31/96 +11.97 +11.16
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/96 +28.73% +24.73%
Five Years Ended 3/31/96 +10.47 +10.47
Ten Years Ended 3/31/96 + 9.66 + 9.66
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/96 +28.71% +27.71%
Inception (10/21/94)
through 3/31/96 +19.40 +19.40
[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*
<PAGE>
Year Ended 3/31/96 +29.69% +22.89%
Inception (10/21/94)
through 3/31/96 +20.73 +16.30
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (continued)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed 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
1994 15.85 13.66 0.705 0.258 - 7.47
1995 13.66 15.84 1.354 0.195 +27.39
1/1/96--4/30/96 15.84 17.60 -- -- +11.11
------ ------
Total $9.734 Total $2.870
Cumulative total return as of 4/30/96: +142.37%**
<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>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed 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
1994 15.77 13.45 0.705 0.243 - 8.45
1995 13.45 15.40 1.354 0.195 +26.08
1/1/96--4/30/96 15.40 17.05 -- -- +10.71
------ ------
Total $11.589 Total $2.653
Cumulative total return as of 4/30/96: +327.32%**
<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**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $14.08 $13.39 $0.157 $0.059 - 3.32%
1995 13.39 15.33 1.354 0.195 +26.12
1/1/96--4/30/96 15.33 16.97 -- -- +10.70
------ ------
Total $1.511 Total $0.254
Cumulative total return as of 4/30/96: +34.98%**
<PAGE>
<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**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $14.26 $13.65 $0.157 $0.059 - 2.71%
1995 13.65 15.79 1.354 0.195 +27.11
1/1/96--4/30/96 15.79 17.52 -- -- +10.96
------ ------
Total $1.511 Total $0.254
Cumulative total return as of 4/30/96: +37.21%**
<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>
Recent Performance Results
<CAPTION>
12 Month 3 Month
4/30/96 1/31/96 4/30/95 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Fund For Tomorrow, Inc. Class A Shares* $17.60 $16.26 $14.75 +29.58%(1) + 8.24%
ML Fund For Tomorrow, Inc. Class B Shares* 17.05 15.79 14.48 +28.14(1) + 7.98
ML Fund For Tomorrow, Inc. Class C Shares* 16.97 15.71 14.41 +28.21(1) + 8.02
ML Fund For Tomorrow, Inc. Class D Shares* 17.52 16.20 14.73 +29.20(1) + 8.15
Standard & Poor's 500 Index** 654.17 636.02 514.71 +27.09 + 2.85
NASDAQ Industrial Index** 1,118.84 969.55 811.46 +37.88 +15.40
ML Fund For Tomorrow, Inc. Class A Shares--Total Return* +31.08(2) + 8.24
ML Fund For Tomorrow, Inc. Class B Shares--Total Return* +29.66(2) + 7.98
ML Fund For Tomorrow, Inc. Class C Shares--Total Return* +29.73(2) + 8.02
ML Fund For Tomorrow, Inc. Class D Shares--Total Return* +30.70(2) + 8.15
Standard & Poor's 500 Index--Total Return** +30.16 + 3.39
<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 $1.354 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.195 per share ordinary
income dividends and $1.354 per share capital gains distributions.
</TABLE>
<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 150,000 COMPAQ Computer Corp. $ 5,445,438 $ 6,993,750 1.8%
Components 100,000 Continental Circuits Corp. 1,468,750 1,175,000 0.3
Systems 300,000 Silicon Graphics, Inc. 11,151,240 8,887,500 2.2
------------ ------------ ------
18,065,428 17,056,250 4.3
Demographic Trends
Medical Devices 100,000 Biomet, Inc. 1,534,375 1,462,500 0.4
Leisure & Entertainment 50,000 Harrah's Entertainment, Inc. 1,235,976 1,725,000 0.4
Healthcare 100,000 Living Centers of America, Inc. 3,353,090 3,700,000 0.9
Healthcare 110,000 Patterson Dental Co., Inc. 2,815,625 3,272,500 0.8
Leisure & Entertainment 25,000 Penske Motorsports, Inc. 600,000 743,750 0.2
Pollution Technology 150,000 Philip Environmental Inc. (ADR)* 1,050,000 1,218,750 0.3
Leisure & Entertainment 125,000 Promus Hotel Corporation 2,569,899 3,546,875 0.9
Insurance 130,000 Torchmark Corp. 5,313,700 5,590,000 1.4
------------ ------------ ------
18,472,665 21,259,375 5.3
<PAGE>
Developing Foreign Economies
Telecommunications 3,000,000 CPT Telefonica Del Peru Pacifico S.A. 5,895,366 6,711,693 1.7
Building Materials 473,000 Cementos Norte Pacasmayo S.A. (Common) 983,929 700,815 0.2
Building Materials 19,000 Cementos Norte Pacasmayo S.A. (Labor Shares) 34,886 29,675 0.0
Telecommunications 3,068,354 Champion Technology Holdings Ltd. 1,005,477 360,959 0.1
Food & Beverage 500,000 Consorcio Alimentos Fabril Pacifico S.A. 617,247 633,179 0.2
Telecommunications 450 Korea Mobile Telecommunication Corp. 533,107 617,487 0.2
Mining 23,000 Minsur Sociedad Limitada S.A. 161,354 186,408 0.0
Specialty Services 1,000,000 National Mutual Asia Ltd. 940,132 846,746 0.2
Building Materials 300,000 Royal Plastic Group Limited 2,686,550 4,629,289 1.2
Electronics 25,384 Samsung Electronics Company (GDR)** 3,280,000 1,922,838 0.5
Electronics 7,760 Samsung Electronics Company
(New Shares) (GDR)** 0 535,440 0.1
------------ ------------ ------
16,138,048 17,174,529 4.4
Future Retailing
Specialty Retail 85,000 Daisytek International Corp. 1,808,875 3,463,750 0.9
Specialty Retail 73,000 Harvey Nichols 297,621 354,109 0.1
Specialty Retail 192,600 OfficeMax, Inc. 2,872,100 5,055,750 1.3
Specialty Retail 23,000 Party City Corporation 230,000 402,500 0.1
------------ ------------ ------
5,208,596 9,276,109 2.4
Global Market Expansion
Cosmetics 87,200 Avon Products, Inc. 6,259,222 7,749,900 2.0
Food & Beverage 100,000 ConAgra Inc. 3,826,115 3,862,500 1.0
Specialty Retail 100,000 Gucci Group N.V. (ADR)* 2,200,000 5,437,500 1.4
Machinery 10,000 Kubota Corp. (ADR)* 1,285,600 1,380,000 0.3
Machinery 50,000 Makita Corp. (ADR)* 796,875 793,750 0.2
Food & Beverage 80,000 PepsiCo, Inc. 2,644,800 5,080,000 1.3
Electronics 200,000 Philips Electronics N.V. (ADR)* 8,214,486 7,175,000 1.8
------------ ------------ ------
25,227,098 31,478,650 8.0
</TABLE>
<PAGE>
<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
Health Services 100,000 Apria Healthcare Group, Inc. $ 2,546,250 $ 3,400,000 0.9%
Pharmaceuticals 50,000 Astra AB (ADR)* 1,781,250 2,218,750 0.6
Medical Devices 100,000 Boston Scientific Corp. 4,133,851 4,312,500 1.1
Pharmaceuticals 100,000 Bristol-Myers Squibb Co. 7,907,000 8,225,000 2.1
Pharmaceuticals 100,000 Lilly (Eli) and Company 4,572,100 5,900,000 1.5
Pharmaceuticals 100,900 Merck & Co., Inc. 4,001,062 6,104,450 1.5
Pharmaceuticals 50,000 Sandoz, AG (ADR)* 1,942,188 2,725,000 0.7
Pharmaceuticals 274,400 Schering-Plough Corp. 3,180,566 15,743,700 4.0
Medical Devices 35,000 Thermo Sentron Inc. 560,000 551,250 0.1
Medical Devices 50,000 ThermoQuest Corp. 750,000 825,000 0.2
Medical Devices 100,000 United States Surgical Corp. 6,799,013 3,700,000 0.9
------------ ------------ ------
38,173,280 53,705,650 13.6
Industrial Outsourcing
Information Services 400,000 CIS Technologies, Inc. 1,634,593 1,100,000 0.3
Specialty Services 36,500 FlightSafety International, Inc. 1,873,180 2,021,188 0.5
Specialty Services 100,000 Greenwich Air Services Inc. 2,278,626 4,350,000 1.1
Office Systems 100,000 Indigo N.V. (ADR)* 1,963,750 1,325,000 0.3
Specialty Services 150,000 Olsten Corp. 3,190,200 4,556,250 1.2
------------ ------------ ------
10,940,349 13,352,438 3.4
Industrial Renaissance
Automotive 114,790 Chrysler Corp. 4,551,040 7,203,072 1.8
Information Systems 75,000 Delta Air Lines, Inc. 5,782,613 6,028,125 1.5
Automotive 100,000 Ford Motor Co. 2,295,190 3,587,500 0.9
Automotive 100,000 General Motors Corp. 4,190,900 5,425,000 1.4
Information Systems 100,000 International Business Machines Corp. 5,658,500 10,750,000 2.7
------------ ------------ ------
22,478,243 32,993,697 8.3
Multimedia
Wireless Cable Television 202,000 CAI Wireless Systems, Inc. 2,168,561 1,388,750 0.4
Broadcasting Services 150,000 Carlton Communications PLC (ADR)* 5,123,125 5,306,250 1.3
Broadcasting & Publishing 200,000 The News Corp. Ltd. (ADR)* 3,095,848 4,700,000 1.2
Software 170,000 Sierra On-Line, Inc. 5,961,381 6,672,500 1.7
Publishing Services 300,000 World Color Press Inc. 5,906,000 7,200,000 1.8
------------ ------------ ------
22,254,915 25,267,500 6.4
<PAGE>
Next Generation Technology
Electronics 4,000 Affinity Technology Group, Inc. 52,000 94,000 0.0
Components 30,000 DSP Communications, Inc. 780,000 1,192,500 0.3
Semiconductors 182,600 Gasonics International Corp. 2,303,368 2,739,000 0.7
Telecommunications 150,000 Geotek Communications, Inc. 1,366,469 1,556,250 0.4
Pollution Technology 300,000 Molten Metal Technology, Inc. 5,221,520 9,525,000 2.4
Medical Devices 70,000 Neuromedical Systems Inc. 1,050,000 1,522,500 0.4
Environmental Equipment 79,600 Thermo Ecotek Corp. 1,281,614 1,880,550 0.5
Multi-Industry 170,000 Thermo Electron Corp. 4,306,667 10,476,250 2.7
Medical Devices 100,000 ThermoLase Corp. 2,525,000 3,312,500 0.8
Medical Devices 100,000 ThermoSpectra Corp. 1,547,300 1,725,000 0.4
Medical Devices 100,000 Thermotrex Corp. 1,586,723 5,237,500 1.3
Electronics 150,000 Whittaker Corp. 2,966,998 3,412,500 0.9
------------ ------------ ------
24,987,659 42,673,550 10.8
</TABLE>
<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 $ 5,275,000 1.3%
Leisure & Entertainment 100,000 Galoob (Lewis) Toys, Inc. 1,385,890 2,125,000 0.5
Specialty Services 100,000 Household International, Inc. 6,712,565 6,912,500 1.8
Leisure & Entertainment 125,000 Mattel, Inc. 2,232,740 3,250,000 0.8
------------ ------------ ------
14,206,244 17,562,500 4.4
Telecommunications
Components 100,000 Andrew Corp. 2,973,417 4,775,000 1.2
Telecommunications 200,000 Boston Technology, Inc. 2,967,630 3,475,000 0.9
Wireless Cable Television 150,000 CellularVision USA, Inc. 2,270,000 1,950,000 0.5
Telecommunications 281,400 Frontier Corp. 2,157,975 8,899,275 2.3
Telecommunications 300,000 Inter-Tel Inc. 3,537,612 6,300,000 1.6
Wireless Communication 110,000 InterCel, Inc. 1,815,000 2,475,000 0.6
Telecommunications 150,000 MCI Communications Corp. 3,895,310 4,387,500 1.1
Telecommunications 200,000 MFS Communications Co., Inc. 2,536,850 6,900,000 1.7
Paging Services 305,000 Metrocall, Inc. 4,988,845 6,328,750 1.6
Components 349,400 Nokia Corp. AB (ADR)* 12,108,398 12,709,425 3.2
Telecommunications 100,000 Pacific Telesis Group, Inc. 3,418,500 3,425,000 0.9
Wireless Communication 200,000 Palmer Wireless, Inc. 2,984,487 4,100,000 1.0
------------ ------------ ------
45,654,024 65,724,950 16.6
<PAGE>
Total Stocks 261,806,549 347,525,198 87.9
<CAPTION>
Face
Amount Short-Term Securities
<S> <C> <S> <C> <C> <C>
Commercial $16,278,000 General Electric Capital Corp., 5.35%
Paper*** due 5/01/1996 16,278,000 16,278,000 4.1
13,000,000 International Securitization Corp.,
5.30% due 5/29/1996 12,946,411 12,946,411 3.3
5,000,000 Lucent Technologies, Inc., 5.28%
due 6/11/1996 4,969,933 4,969,933 1.3
7,000,000 National Fleet Funding Corp., 5.33%
due 5/03/1996 6,997,927 6,997,927 1.8
8,000,000 U.S. West Inc., 5.27% due 6/12/1996 7,950,813 7,950,813 2.0
Total Short-Term Securities 49,143,084 49,143,084 12.5
Total Investments $310,949,633 396,668,282 100.4
============
Liabilities in Excess of Other Assets (1,580,161) (0.4)
------------ ------
Net Assets $395,088,121 100.0%
============ ======
Net Asset Class A--Based on net assets of $36,894,146 and 2,096,671
Value: shares outstanding $ 17.60
============
Class B--Based on net assets of $111,982,617 and 6,567,868
shares outstanding $ 17.05
============
Class C--Based on net assets of $7,256,801 and 427,749
shares outstanding $ 16.97
============
Class D--Based on net assets of $238,954,557 and 13,636,602
shares outstanding $ 17.52
============
<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.
</TABLE>
PORTFOLIO INFORMATION
<PAGE>
For the Quarter Ended April 30, 1996
Percent of
Ten Largest Equity Holdings Net Assets
Schering-Plough Corp. 4.0%
Nokia Corp. AB (ADR) 3.2
International Business Machines Corp. 2.7
Thermo Electron Corp. 2.7
Molten Metal Technology, Inc. 2.4
Frontier Corp. 2.3
Silicon Graphics, Inc. 2.2
Bristol-Myers Squibb Co. 2.1
Avon Products, Inc. 2.0
Chrysler Corp. 1.8
Additions
Affinity Technology Group, Inc.
CellularVision USA, Inc.
DSP Communications, Inc.
*Data Processing Resources Corp.
Harvey Nichols
Household International, Inc.
InterCel, Inc.
Pacific Telesis Group, Inc.
Party City Corporation
Penske Motorsports, Inc.
Philip Environmental Inc. (ADR)
*Planet Hollywood International, Inc.
*Raptor Systems Inc.
Samsung Electronics Company (New Shares) (GDR)
Thermo Sentron Inc.
ThermoQuest Corp.
*Yahoo! Inc.
Deletions
3DO Co.
ANTEC Corp.
Accom, Inc.
Anheuser-Busch Companies, Inc.
Colgate-Palmolive Co.
Corrections Corp. of America
*Data Processing Resources Corp.
ICC Technologies, Inc.
Lernout & Hauspie Speech Products N.V.
Motorola, Inc.
The News Corp. Ltd. (Conv. Pfd.) (ADR)
Omnipoint Corp.
*Planet Hollywood International, Inc.
*Raptor Systems Inc.
US Satellite Broadcasting
Videologic Group PLC
Wendy's International, Inc.
Westcott Communications, Inc.
*Yahoo! Inc.
<PAGE>
[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
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
