MERRILL
LYNCH
GLOBAL
HOLDINGS
Quarterly Report February 28, 1994
This report is not authorized for use as an offer of sale
or a solicitation of an offer to buy shares of the Company
unless accompanied or preceded by the Company'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
Global Holdings
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL HOLDINGS
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Ken E. Mathysen-Gerst, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
John F. Wallace, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Philip L. Kirstein, Senior Vice President
Donald C. Burke, Vice President
Frederick P. Ives, Vice President
Gerald M. Richard, Treasurer
Robert Harris, Secretary
<PAGE>
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
Chase MetroTech Center
Brooklyn, New York 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
During the quarter ended February 28, 1994, Merrill Lynch Global
Holdings Class A and Class B Shares posted total returns of
+12.04% and +11.75%, respectively, compared to +10.29% for the
unmanaged Morgan Stanley Capital International World Stock Index.
(Complete performance information, including average annual total
returns, can be found on pages 4 and 5 of this report to shareholders.)
The fund's 20.6% exposure to the Japanese stock market (up from 18.1%
at the end of the November quarter) had a positive impact on its
February quarter performance. The fund remained underweighted in
Europe at 20.2% of net assets during the quarter. European economies
do not appear positioned for a meaningful rebound until 1995 at the
earliest, and appear stalled for the near term. European stock market
performances lagged behind those of other world markets during the
February quarter. In Europe we continue to focus on interest rate-
sensitive and consumer equities.
The fund's North American and Latin American investments rose
strongly during the quarter. In North America, our holdings in
cyclical areas and technology issues performed particularly well
because of the strong economic expansion in both the United
States and Canada. Latin American holdings rose sharply in
December and January as investors sought issues in higher-growth
emerging markets. Weaker economic reports for the last calendar
quarter of 1993 and disappointing corporate earnings have caused
Latin American markets to correct from their February highs, but
we remain positive on their prospects over the longer term. We
view current price weakness as an opportunity to purchase Latin
American holdings at more reasonable valuations.
During the February quarter, the fund's cash position rose from
7.9% of net assets to 9.9%, primarily the result of profit-taking
in selected issues.
<PAGE>
Asian Investment Activities
Despite ongoing pessimism regarding the economy and corporate
profits, the Japanese stock market, as measured by the Nikkei 225
Index, rose by more than 15% since the beginning of 1994 through
February month-end. The strength of the Japanese stock market can
be attributed primarily to buying by foreign investors, who moved
out of other Asian markets as they began to correct. The foreign
buying appeared to gain momentum as the Japanese government made
some progress in enacting political reform in January. The
Japanese stock market has been the best-performing major Asian
stock market thus far in 1994, and the fund's Japanese holdings
in finance, export/technology and communications-related sectors
showed particularly strong gains.
On the economic front, there are some signs that the Japanese
recession finally may be bottoming out. However, investment in
plant and equipment is still depressed, consumer spending remains
weak and corporations are in need of more restructuring. Moreover,
the yen is still strong, and worries over trade friction issues
remain. Nevertheless, we believe that the worst should be over for
Japan by the second half of 1994. If the government's stimulus pro-
gram is implemented as planned, we believe the Japanese economy is
likely to show stronger positive growth later this year.
Our view on the Japanese stock market also remains relatively
optimistic for the long term. However, in the near term we plan to
continue to be slightly underweighted. While the Japanese stock
market appears vulnerable to yen strength in the weeks ahead as
Japan-US trade talks hold center stage, we believe that the yen
will eventually weaken relative to the US dollar.
During the February quarter, we increased weightings in export blue-
chip companies such as Sony Music Entertainment (Japan) Inc. and
Matsushita Electric Industrial Co., which would benefit from a
weakening yen. We also added to our positions in technology companies
with exposure to communications and multimedia, such as Sumitomo
Electric Industries, Ltd., Murata Manufacturing Co., Ltd. and established
a position in Uniden Corp.
Other Asian stock markets outside of Japan, in which the fund is
still overweighted, corrected sharply since the beginning of 1994
after registering huge gains in 1993. Stock markets in Hong Kong,
Malaysia and Thailand all declined more than 20% from their recent
highs as investor sentiment abruptly became negative following the
rise in US interest rates. Although there are areas of concern for
the region over the near term, we do not believe that the increase
in US interest rates will have a significant long-term effect on the
region's prosperity.
We made few changes to our Asian holdings outside of Japan during
the February quarter. Our most significant action was to initiate
a position in India, albeit a small one. India's population is the
world's second-largest behind the People's Republic of China, and its
economy was the seventh-largest in 1993. We believe that over the long
term India may offer the fund even more attractive investment
opportunities.
<PAGE>
The Americas Investment
Activities
In the United States, gross domestic product (GDP) grew 7.5% in
real terms during the fourth quarter of 1993, the fastest growth
in almost ten years. Although this strong rate of growth is not
likely to be sustained throughout 1994, the economic expansion
appears well-established. Despite the initial stock market volatility
triggered by the Federal Reserve Board's modest tightening of monetary
policy, we believe that inflation continues in check while the US
economy remains on a steady growth path.
Investments in cyclical areas such as automobiles performed well
during the February quarter. Semiconductor and semiconductor
equipment holdings also appreciated, buoyed by stronger capital
spending to improve corporate productivity. During the quarter we
increased positions in other areas that we expect will benefit
from this phase of the economic cycle, especially in the housing
sector.
For example, we purchased shares of Georgia-Pacific Corporation
during the quarter, an important beneficiary of the strong
housing market through its plywood, lumber and gypsum operations.
Improved pricing and lower costs are likely to result in higher
earnings for the company in 1994. Owens-Corning Fiberglass Corporation,
another new holding, is the world's leading manufacturer of fiberglass
products and is a major producer of polyester resins. We also expect
this company to experience earnings gains as a result of the buoyant
housing market. Owens-Corning's important product categories include
insulation, windows, patio doors and roofing shingles, all of which are
used for both new construction and refurbishment.
Another new investment likely to benefit from faster economic growth
is Ferro Corporation, a worldwide producer of specialty chemicals for
use in porcelain enamels and ceramic glazes. Ferro's markets include
construction, appliances, household furnishings, industrial products,
automobiles and aircraft. We also purchased shares of Tenneco Inc.,
where restructuring, in addition to the economic expansion, is likely to
lead to better earnings growth. Tenneco operates natural gas pipelines,
manufactures farm and construction equipment, builds ships and produces
packaging materials, automotive parts, and chemicals.
Latin American stock markets performed extremely well during
December and January as investors focused their attention on the
growth potential of emerging markets. However, by February lower-
than-expected economic performance and earnings gains began to be
reflected in lower share prices. We view the recent correction as
an opportunity to buy Latin American stocks at more reasonable
valuations.
<PAGE>
We selectively increased our exposure in Argentina and Chile, two
of the most stable and best-positioned Latin American economies.
In Argentina we initiated a position in Compania Naviera Perez
Companc, an energy and closed-end investment company with
holdings in telecommunications, electric utilities and
construction. Perez Companc has invested in several companies
privatized by the Argentine government, and their valuations have
grown substantially as their shares were sold to the public.
Perez stock has lagged the overall market to date, however, and
therefore represented good value, in our view.
In Chile we chose to increase our exposure through investment in the
closed-end GT Chilean Growth Fund. Restrictions on foreign investment in
the local Chilean market are great, and few American Depositary Receipts
(ADRs) are available, driving their prices to high levels. In our
view, it was preferable to increase our Chilean exposure through local
investment, since any changes in foreign investment restrictions would
have an immediate beneficial impact and valuations are generally lower.
GT Chilean Growth Fund invests locally in Chile, and its shares were
selling at a discount to net asset value. Therefore, purchasing shares
of this closed-end fund enabled us to invest locally at an attractive
valuation yet avoid the current restrictions.
European Investment Activities
We continue to underweight Europe as we await clearer evidence of
economic recovery on the continent. In the meantime, our European
investments focused on consumer-related holdings. One standout
during the February quarter was Heineken N.V., whose sales and
earnings have been increasing at a rapid pace worldwide. We
increased our position in Roche Holdings AG, a leading world-
class pharmaceutical company. We believe that the steady stream
of new product introductions and a strong management team will
provide considerably higher profits for Roche over the next
several years.
In Conclusion
We thank you for your investment in Merrill Lynch Global Holdings,
and we look forward to reviewing our outlook and strategy with you
in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Frederick P. Ives)
Frederick P. Ives
Vice President and Portfolio Manager
March 22, 1994
<PAGE>
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.
<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>
7/2/84--12/31/84 $ 9.15 $ 9.32 -- $0.170 + 3.68%
1985 9.32 12.28 -- 0.340 +36.05
1986 12.28 14.28 $1.270 0.300 +30.25
1987 14.28 11.52 3.638 0.372 + 6.54
1988 11.52 11.01 1.275 0.337 +10.04
1989 11.01 11.77 1.492 0.212 +23.53
1990 11.77 10.28 0.188 0.261 - 9.20
1991 10.28 11.67 0.221 0.123 +17.12
1992 11.67 11.27 0.817 0.063 + 4.28
1993 11.27 13.14 0.443 0.371 +24.08
1/1/94--2/28/94 13.14 13.76 -- -- + 4.72
------ ------
Total $9.344 Total $2.549
Cumulative total return as of 2/28/94: +283.40%**
<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
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/88--12/31/88 $11.29 $11.00 $0.388 $0.147 + 2.22%
1989 11.00 11.71 1.492 0.138 +22.33
1990 11.71 10.20 0.188 0.166 -10.18
1991 10.20 11.56 0.221 0.036 +16.02
1992 11.56 11.09 0.817 0.001 + 3.15
1993 11.09 12.94 0.443 0.219 +22.87
1/1/94--2/28/94 12.94 13.52 -- -- + 4.48
------ ------
Total $3.549 Total $0.707
Cumulative total return as of 2/28/94: +72.57%**
<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>
Average
Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/93 +24.08% +16.02%
Five Years Ended 12/31/93 +11.20 + 9.71
Inception (7/2/84) through 12/31/93 +14.63 +13.82
[FN]
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/93 +22.87% +18.87%
Five Years Ended 12/31/93 +10.07 +10.07
Inception (10/21/88) through 12/31/93 +10.14 +10.14
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0% after
4 years.
**Assuming payment of applicable contingent deferred sales charge.
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
2/28/94 11/30/93 2/28/93 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Holdings Class A Shares $13.76 $13.07 $11.28 +26.25%(1) + 8.96%(1)
ML Global Holdings Class B Shares 13.52 12.74 11.08 +26.35(1) + 9.89(1)
ML Global Holdings Class A Shares--Total Return +29.82(2) +12.04(2)
ML Global Holdings Class B Shares--Total Return +28.50(3) +11.75(3)
World Stock Index--Total Return** +25.51 +10.29
<FN>
**Investment results shown for the 3-month and 12-month periods are before the deduction of any sales charges.
**The Capital International World Stock Index is an unmanaged US dollar-denominated index of world stock markets compiled by
Capital International Perspective S.A. and published in Morgan Stanley Capital International Perspective.
(1) Percent change includes reinvestment of $0.443 per share capital gains distributions.
(2) Percent change includes reinvestment of $0.371 per share income dividends and $0.443 per share capital gains distributions.
(3) Percent change includes reinvestment of $0.219 per share income dividends and $0.443 per share capital gains distributions.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
LATIN Shares Percent of
AMERICA Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Beverages & 27,000 Buenos Aires Embotelladora S.A. (BAESA)
Tobacco (ADR)* $ 737,640 $ 1,093,500 0.3%
Energy 50,000 Yacimientos Petroliferos Fiscales
S.A.--Sponsored (ADR)* 950,000 1,362,500 0.3
Multi-Industry 150,000 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 1,047,194 1,077,323 0.3
Telecommunications 40,000 Telecom Argentina Stet--France
Telecom S.A. (ADR)* 1,400,296 2,420,000 0.6
Utilities 30,000 Central Puerto (ADR)* 795,000 1,035,000 0.3
Total Investments in Argentina 4,930,130 6,988,323 1.8
Brazil Telecommunications 20,000,000 Telecommunicacoes Brasileiras
S.A.--Telebras PN (Preferred) 621,462 944,758 0.2
Total Investments in Brazil 621,462 944,758 0.2
Chile Chemicals 45,000 Sociedad Quimica y Minera de
Chile S.A. (B Shares) (ADR)* 1,158,750 1,507,500 0.4
Metals 35,000 Madeco S.A. (ADR)* 525,000 1,146,250 0.3
Multi-Industry 25,000 GT Chilean Growth Fund 900,000 787,500 0.2
Utilities 40,000 Enersis S.A. (ADR)* 779,762 850,000 0.2
Total Investments in Chile 3,363,512 4,291,250 1.1
Mexico Banking 40,000 Grupo Financiero Bancomer,
S.A. de C.V. (ADR)* 1,100,000 1,420,000 0.4
Beverages & 20,000 Coca-Cola Femsa S.A. (ADR)* 454,318 635,000 0.2
Tobacco 30,000 Empresa La Moderna, S.A. de
C.V. (ADR)* 992,735 843,750 0.2
20,000 Panamerican Beverages Inc.
(A Shares) (ADR)* 525,114 800,000 0.2
------------ ------------ ------
1,972,167 2,278,750 0.6
Broadcasting 25,000 Grupo Televisa, S.A. de C.V. (ADR)* 625,000 1,587,500 0.4
& Publishing
<PAGE>
Engineering & 36,000 Grupo Mexicano de Desarrollo S.A.
Construction (Class B) 612,000 724,500 0.2
36,000 Grupo Mexicano de Desarrollo S.A.
(Class L) (ADR)* 612,000 738,000 0.2
------------ ------------ ------
1,224,000 1,462,500 0.4
Merchandising 500,000 Cifra, S.A. de C.V. (Class 'C') 462,703 1,322,884 0.3
Multi-Industry 200,000 Grupo Carso, S.A. de C.V. 1,644,366 2,037,618 0.5
Steel 70,000 Grupo Simec, S.A. de C.V. (ADR)* 983,276 1,925,000 0.5
Telecommunications 20,000 Telefonos de Mexico,
S.A. de C.V. (ADR)* 545,000 1,342,500 0.4
Total Investments in Mexico 8,556,512 13,376,752 3.5
Venezuela Steel 100,000 Siderurgica Venezolana SIVENSA,
S.A.I.C.A.-S.A.C.A. (Warrants)
(ADR)* (a) 220,000 3,000 0.0
52,000 Venezolana de Prerreducidos Caroni
'Venprecar' C.A. (GDS)** 379,600 370,500 0.1
------------ ------------ ------
599,600 373,500 0.1
Total Investments in Venezuela 599,600 373,500 0.1
Total Investments in Latin America 18,071,216 25,974,583 6.7
NORTH
AMERICA
Canada Appliances 160,000 International Semi-Tech
Microelectronics, Inc. (Installment
Receipts) 984,765 769,174 0.2
Beverages 40,000 Cott Corp. 1,288,125 1,110,000 0.3
& Tobacco
Electrical 150,000 CMAC Investment Corp. 996,330 915,243 0.2
Equipment
Energy 700,000 Luscar Oil & Gas Ltd. 1,027,500 667,850 0.2
Forest Products 40,000 Slocan Forest Products, Ltd. 724,081 1,042,822 0.3
Metals 45,000 Dofasco Inc. 816,019 807,078 0.2
<PAGE>
Oil Field 60,000 Canadian Fracmaster, Ltd. 673,200 488,130 0.1
Equipment 85,000 Enerflex Systems, Ltd. 809,153 990,126 0.3
------------ ------------ ------
1,482,353 1,478,256 0.4
Telecommunications 55,000 Newbridge Networks Corp. 855,730 3,135,000 0.8
Total Investments in Canada 8,174,903 9,925,423 2.6
United Appliances 50,000 River Oaks Furniture Inc. 941,876 862,500 0.2
States
Automobiles 30,000 Ford Motor Co. (8.40% Conv. Pfd.) 1,500,000 3,135,000 0.8
50,000 General Motors Corp. 2,112,574 2,912,500 0.8
------------ ------------ ------
3,612,574 6,047,500 1.6
Banking 35,000 Baybanks, Inc. 1,301,250 1,925,000 0.5
30,000 Chemical New York 817,500 1,117,500 0.3
25,000 Mercantile Bancorp., Inc. 949,375 1,165,625 0.3
80,000 Midlantic National Bank 1,912,812 2,200,000 0.6
80,000 UJB Financial Corp. 1,602,623 2,100,000 0.5
------------ ------------ ------
6,583,560 8,508,125 2.2
Broadcasting 50,000 Broadcasting Partners Inc. (Class A) 725,000 668,750 0.2
& Publishing 37,500 Clear Channel Communications Inc. 1,061,250 1,504,687 0.4
100,000 Time Warner Inc. 2,832,157 3,812,500 1.0
------------ ------------ ------
4,618,407 5,985,937 1.6
Building Materials 25,000 Owens-Corning Fiberglass Corporation 1,101,500 1,012,500 0.3
Business Services 100,000 Beverly Enterprises 1,206,000 1,512,500 0.4
18,000 Microsoft Corp 1,503,000 1,485,000 0.4
70,000 Molten Metal Technology, Inc. 1,208,113 1,995,000 0.5
60,000 Oracle Systems Corp. 956,438 1,980,000 0.5
60,000 PacifiCare Health Systems (Class 'B') 1,862,500 3,060,000 0.8
50,000 Purus Inc. 652,500 562,500 0.1
80,000 Sierra Health Services Inc. 1,341,201 2,260,000 0.6
22,400 United HealthCare Corp. 737,136 1,850,800 0.5
------------ ------------ ------
9,466,888 14,705,800 3.8
Chemicals 30,000 Ferro Corporation 1,029,300 1,046,250 0.3
Computer Technology 40,000 Novell Inc. 1,253,000 1,020,000 0.3
Electrical Equipment 50,000 First Pacific Co. Ltd. 871,250 600,000 0.2
100,000 Ultratech Stepper Inc. 1,846,275 2,575,000 0.7
------------ ------------ ------
2,717,525 3,175,000 0.9
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
NORTH AMERICA Shares Held/ Percent of
(concluded) Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Electronics 25,000 Intel Corp. $ 590,937 $ 1,718,750 0.4%
(concluded) 85,000 LSI Logic Corp. 1,350,177 1,625,625 0.4
118,300 Logic Devices Inc. 660,046 724,587 0.2
20,000 Micron Technologies Inc 1,010,926 1,417,500 0.4
10,000 Motorola, Inc. 866,290 1,021,250 0.3
20,000 Texas Instruments Inc. 1,297,950 1,615,000 0.4
------------ ------------ ------
5,776,326 8,122,712 2.1
Energy 20,000 Anadarko Petroleum, Inc. 724,326 890,000 0.2
15,000 Chevron Corp. 1,323,615 1,301,250 0.3
30,000 Enron Oil & Gas Co. 924,528 1,290,000 0.3
------------ ------------ ------
2,972,469 3,481,250 0.8
Energy Equipment 30,000 Schlumberger Ltd. 1,752,332 1,706,250 0.4
& Services--
Oil Field Equipment
Food & Household 65,000 Performance Food Group Co. 1,010,421 1,365,000 0.4
Products
Forest Products 25,000 Georgia-Pacific Corporation 1,820,250 1,781,250 0.5
Health & 60,000 Marsam Pharmaceuticals Inc. 1,138,748 765,000 0.2
Personal Care 50,000 Maybelline Inc. 1,206,802 1,462,500 0.4
58,300 Nutramax Products, Inc. 786,433 699,600 0.1
50,000 Watson Pharmaceutical Inc. 1,295,326 962,500 0.3
------------ ------------ ------
4,427,309 3,889,600 1.0
Industrial--Other 50,000 Johnson Controls, Inc. 1,950,091 2,956,250 0.8
50,000 Varity Corp. 1,408,040 2,275,000 0.6
------------ ------------ ------
3,358,131 5,231,250 1.4
Insurance 100,000 AFLAC, Inc. 2,261,425 2,962,500 0.8
Leisure 40,000 McDonald's Corp. 1,807,400 2,425,000 0.6
175,000 Mirage Resorts, Inc. 2,647,000 4,418,750 1.2
40,000 Walt Disney Co. 1,223,800 1,925,000 0.5
------------ ------------ ------
5,678,200 8,768,750 2.3
<PAGE>
Merchandising 30,000 The Home Depot, Inc. 456,275 1,248,750 0.3
75,000 Home Shopping Network, Inc. 1,046,473 993,750 0.3
30,000 Toys 'R' Us, Inc. 750,858 1,095,000 0.3
40,000 Wal-Mart Stores, Inc. 658,900 1,135,000 0.3
------------ ------------ ------
2,912,506 4,472,500 1.2
Multi-Industry 67,900 Addington Resources, Inc. 1,003,379 1,222,200 0.3
55,000 Mercer International Inc. 973,190 996,875 0.3
20,000 Tenneco Inc. 1,091,238 1,115,000 0.3
------------ ------------ ------
3,067,807 3,334,075 0.9
Railroads 30,000 CSX Corp. 1,993,665 2,640,000 0.7
20,000 Consolidated Rail Corp. 931,200 1,242,500 0.3
------------ ------------ ------
2,924,865 3,882,500 1.0
Recreation 129,000 Autotote Corp. (Class A) 1,161,000 3,225,000 0.8
70,000 Lodgenet Entertainment Corp. 1,029,643 962,500 0.3
50,000 Mikohn Gaming Corp. 738,125 787,500 0.2
US$ 1,500,000 United Gaming, Inc., 7.50% due 9/15/2003 1,500,000 1,455,000 0.4
37,000 WMS Industries, Inc. 1,033,358 957,375 0.2
------------ ------------ ------
5,462,126 7,387,375 1.9
Telecommunications 20,392 Pacific Telesis Group 1,068,880 1,111,364 0.3
50,000 PacTel Corporation 1,150,000 1,181,250 0.3
------------ ------------ ------
2,218,880 2,292,614 0.6
Total Investments in the United States 76,967,677 101,041,238 26.5
Total Investments in North America 85,142,580 110,966,661 29.1
PACIFIC
BASIN
Australia Banking 120,000 Advance Bank Australia, Ltd. 792,422 860,130 0.2
105,076 National Australia Bank, Ltd. 647,467 892,410 0.3
200,000 St. George Bank, Ltd. 873,812 1,054,500 0.3
------------ ------------ ------
2,313,701 2,807,040 0.8
Broadcasting 150,000 News Corp., Ltd. (Ordinary) 1,090,627 1,077,300 0.3
& Publishing
Industrial Components 300,000 Orbital Engine Corp., Ltd. 628,403 470,250 0.1
Metals 600,000 MIM Holdings, Ltd. 1,051,363 1,218,375 0.3
Total Investments in Australia 5,084,094 5,572,965 1.5
<PAGE>
Hong Kong Broadcasting 1,500,000 Oriental Press Group 719,704 1,067,823 0.3
& Publishing 300,000 Television Broadcast, Ltd. 1,183,533 1,063,940 0.3
------------ ------------ ------
1,903,237 2,131,763 0.6
Construction 1,000,000 Paul Y--ITC Construction Hldg. 343,834 323,583 0.1
& Housing
Multi-Industry 500,000 Swire Pacific 'A' Ltd. 2,287,425 3,559,410 0.9
Real Estate 750,000 China Strategic Investment Ltd. 646,809 601,864 0.1
550,000 Sun Hung Kai Properties, Ltd. 2,426,166 4,200,104 1.1
------------ ------------ ------
3,072,975 4,801,968 1.2
Telecommunications 600,000 Hong Kong Telecommunications Ltd. 1,236,727 1,133,834 0.3
Utilities 960,000 China Light & Power Co., Ltd. 3,896,550 5,125,550 1.3
Total Investments in Hong Kong 12,740,748 17,076,108 4.4
Indonesia Cement 200,000 P.T. Indocement Tunggal Prakar 1,423,188 2,191,653 0.6
Textiles 330,000 Indorama Synthetics (Foreign) 975,477 1,384,938 0.4
Total Investments in Indonesia 2,398,665 3,576,591 1.0
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
PACIFIC BASIN Shares Held/ Percent of
(concluded) Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Japan Appliances 150,000 Matsushita Electric Industrial Co. $ 1,990,558 $ 2,564,349 0.7%
80,000 Rinnai Corp. 1,452,936 2,328,083 0.6
30,000 Sony Corp. 1,580,832 1,844,026 0.5
------------ ------------ ------
5,024,326 6,736,458 1.8
Automobiles 40,000 Mabuchi Motor Co. 2,349,535 2,954,284 0.8
300,000 Toyota Motor Corp. 4,148,625 5,820,207 1.5
------------ ------------ ------
6,498,160 8,774,491 2.3
Banking 170,000 The Asahi Bank, Ltd. 1,779,958 1,926,623 0.5
100,000 The Bank of Tokyo, Ltd. 1,301,028 1,546,293 0.4
150,000 The Mitsubishi Bank, Ltd. 3,821,028 4,149,059 1.1
------------ ------------ ------
6,902,014 7,621,975 2.0
<PAGE>
Broadcasting 300,000 Tokyo Broadcasting System 3,736,661 5,445,640 1.4
& Publishing
Business Services 150,000 Kamigumi Co., Ltd. 1,805,921 1,887,245 0.5
Construction 90,000 Kandenko Co., Ltd. 2,393,079 2,333,846 0.6
& Housing 120,000 National House Industries 1,925,972 2,305,033 0.6
160,000 Sekisui House Ltd. 1,954,055 2,151,364 0.5
150,000 Taisei Prefab Construction Co. 2,333,723 2,204,187 0.6
------------ ------------ ------
8,606,829 8,994,430 2.3
Electronics 20,000 Keyence Corp. 1,309,685 2,208,990 0.6
70,000 Murata Manufacturing Co., Ltd. 2,121,289 3,260,661 0.8
150,000 Sharp Corp. 2,178,050 2,521,129 0.7
70,000 Uniden Corp. 2,226,522 2,554,745 0.7
------------ ------------ ------
7,835,546 10,545,525 2.8
Financial Services 300,000 Daiwa Securities Co., Ltd. 3,725,815 5,186,323 1.3
100,000 Mitsubishi Trust & Banking Corp. 1,132,517 1,392,624 0.4
------------ ------------ ------
4,858,332 6,578,947 1.7
Industrial Components 100,000 Futaba Industrial 1,670,788 1,911,256 0.5
Machinery & 60,000 Aichi Corp. 722,386 691,510 0.2
Engineering 150,000 Makino Milling Machine 1,086,861 923,454 0.2
------------ ------------ ------
1,809,247 1,614,964 0.4
Merchandising 60,000 Ito--Yokado Co., Ltd. 2,604,246 3,422,973 0.9
63,000 Keiyo Co., Ltd. 1,087,771 1,210,142 0.3
------------ ------------ ------
3,692,017 4,633,115 1.2
Recreation 50,000 Sony Music Entertainment (Japan) Inc. 2,277,144 3,183,826 0.8
Wholesale & 35,000 Aoyama Trading Co. 2,287,334 1,996,735 0.5
International Trade 200,000 Mitsui & Co. 1,346,038 1,477,142 0.4
------------ ------------ ------
3,633,372 3,473,877 0.9
Utilities 270,000 Sumitomo Electric Industries, Ltd. 2,968,251 4,226,854 1.1
60,000 Tohoku Electric Power 1,442,569 1,763,350 0.5
50,000 Tokyo Electric Power Co., Inc. 1,346,483 1,666,347 0.4
------------ ------------ ------
5,757,303 7,656,551 2.0
Total Investments in Japan 64,107,660 79,058,300 20.6
<PAGE>
Malaysia Automobiles 200,000 Edaran Otomobil Nasional BHD 813,747 1,379,310 0.4
Banking 583,333 Commerce Asset-Holding BHD 1,276,855 2,353,875 0.6
Construction 150,000 Ekran BHA 573,279 1,315,114 0.3
& Housing
Telecommunications 350,000 Telekom Malaysia BHD 1,489,928 2,413,793 0.6
Utilities 180,000 Tenaga Nasional BHD 766,114 1,082,905 0.3
Total Investments in Malaysia 4,919,923 8,544,997 2.2
New Zealand Telecommunications 500,000 New Zealand Telecommunications 1,278,315 1,273,625 0.3
Total Investments in New Zealand 1,278,315 1,273,625 0.3
Singapore Air Transport 100,000 Singapore Airlines, Ltd. 383,769 714,964 0.2
Banking 149,500 The Development Bank of Singapore Ltd. 822,928 1,437,773 0.4
Machinery 70,000 Jurong Shipyard, Ltd. 212,543 597,912 0.1
& Equipment
Multi-Industry 300,000 Amcol Holdings Ltd. 838,802 857,956 0.2
Shipping 300,000 Straits Steamship Land 670,270 732,680 0.2
Telecommunications 400,000 Singapore Telecommunications Ltd. 907,320 916,166 0.2
Total Investments in Singapore 3,835,632 5,257,451 1.3
South Korea Aerospace 20,000 Samsung Aerospace Industries 821,485 789,799 0.2
Banking 75,640 Hanil Bank 1,123,122 850,224 0.3
Construction 26,265 Hyundai Engineering and Construction Co. 539,284 1,264,804 0.3
& Housing
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,661,302 0.4
Total Investments in South Korea 3,581,006 4,566,129 1.2
Thailand Banking 100,000 The Siam Commercial Bank Ltd. 297,564 679,573 0.2
Building Materials 35,000 Siam Cement Group 1,001,563 1,371,790 0.3
Electrical Equipment 25,000 United Communication Industry 403,875 600,553 0.2
Total Investments in Thailand 1,703,002 2,651,916 0.7
Total Investments in the Pacific Basin 99,649,045 127,578,082 33.2
<PAGE>
SOUTHEAST
ASIA
India Electrical US$ 75,000 Sterlite Industry, 3.50% due 6/30/1999 75,000 93,375 0.0
& Electronics
Textiles & Apparel 30,000 Indian Rayon & Industries 654,207 592,500 0.1
Total Investments in Southeast Asia 729,207 685,875 0.1
WESTERN
EUROPE
Belgium Utilities 5,250 Electrabel NPV 912,538 959,307 0.2
Total Investments in Belgium 912,538 959,307 0.2
Denmark Telecommunications 4,000 GN Store Nord Holding (GREAT NORDIC) 335,774 374,644 0.1
Total Investments in Denmark 335,774 374,644 0.1
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
WESTERN EUROPE Shares Percent of
(concluded) Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Finland Food & Household 40,000 Huhtamaki Corp. $ 904,752 $ 1,584,517 0.4%
Products
Multi-Industry 5,000 OY Nokia AB 255,224 280,365 0.1
Total Investments in Finland 1,159,976 1,864,882 0.5
France Broadcasting 5,000 Canal Plus 1,040,635 858,843 0.2
& Publishing
Building Materials 8,500 Lapeyre S.A. 496,706 499,871 0.1
Business & Public 4,285 Compagnie Generale des Eaux 1,574,432 1,955,352 0.5
Services
Chemicals 5,000 Imetal Co. 502,687 568,250 0.1
Engineering 2,325 Colas Co. 411,884 477,951 0.2
& Construction
Total Investments in France 4,026,344 4,360,267 1.1
<PAGE>
Germany Automobiles 43,000 Daimler-Benz AG (ADR)* 2,010,250 2,047,875 0.5
Banking 5,500 Commerzbank AG 871,719 1,113,114 0.3
2,000 Deutsche Bank AG 651,283 947,356 0.2
------------ ------------ ------
1,523,002 2,060,470 0.5
Health & 3,000 Wella AG (Preferred) 1,257,499 1,415,758 0.4
Personal Care
Merchandising 3,000 Hornbach AG (Preferred) 1,612,790 3,077,735 0.8
1,312 Hornbach Baumarkt AG 691,841 780,678 0.2
------------ ------------ ------
2,304,631 3,858,413 1.0
Steel 4,000 Friedrich Grohe (Preferred) 874,709 961,426 0.3
Total Investments in Germany 7,970,091 10,343,942 2.7
Italy Banking 96,000 IMI (Ordinary) 619,722 736,114 0.2
Merchandising 125,000 La Rinascente RISP 285,348 482,026 0.1
Telecommunications 300,000 SIP Italia (Ordinary) 280,800 738,859 0.2
300,000 SIP Italia (Savings) 490,473 636,364 0.2
------------ ------------ ------
771,273 1,375,223 0.4
Total Investments in Italy 1,676,343 2,593,363 0.7
Netherlands Banking 26,000 ABN Amro Bank N.V. 770,721 935,457 0.2
Beverages & Tobacco 15,000 Heineken N.V. 1,523,893 1,817,232 0.5
Broadcasting 20,000 Wolters Kluwer CVA 739,262 1,243,864 0.3
& Publishing
Construction 50,000 IHC Caland N.V. 1,035,401 1,140,992 0.3
& Housing
Food & Household 35,000 Kon Bols Wessanen 798,182 806,005 0.2
Products
Total Investments in the Netherlands 4,867,459 5,943,550 1.5
<PAGE>
Norway Multi-Industry 20,000 Orkla A S-Frie A-Aksjer 571,454 813,931 0.2
15,000 Schibsted Gruppen A/S 752,395 831,508 0.2
Total Investments in Norway 1,323,849 1,645,439 0.4
Spain Business Services 88,000 Acesa Auto Pistas Cesa 1,013,923 966,163 0.3
84,000 Aumar-Autopistas Del Mare Nostrum S.A. 1,031,558 988,769 0.3
------------ ------------ ------
2,045,481 1,954,932 0.6
Telecommunications 150,000 Telefonica de Espana Co. 2,015,867 2,132,829 0.6
Utilities 58,060 Empresa Nacional de Electricidad S.A. 2,056,698 3,059,749 0.8
300,000 Iberdola I S.A. 1,977,383 2,300,216 0.6
------------ ------------ ------
4,034,081 5,359,965 1.4
Total Investments in Spain 8,095,429 9,447,726 2.6
Sweden Health & 170,000 Astra 'B' Fria 2,861,783 3,792,503 1.0
Personal Care
Merchandising 15,000 Hennes & Mauritz 409,324 567,747 0.1
Total Investments in Sweden 3,271,107 4,360,250 1.1
Switzerland Banking 4,000 Swiss Bank Corp. (Bearer) 849,733 1,261,830 0.3
Electrical Equipment 2,000 BBC Brown Boveri & Co. 1,542,228 1,472,135 0.4
Food & Household 1,100 Nestle AG 439,670 989,345 0.3
Products
Health & 1,731 Roche Holding AG 6,874,061 8,494,217 2.2
Personal Care
Insurance 2,000 Swiss Reinsurance Co. 'A' (Warrants) (a) 0 9,814 0.0
2,000 Swiss Reinsurance Co. 'B' (Warrants) (a) 0 9,814 0.0
2,000 Swiss Reinsurance Co. (PC) 725,688 890,291 0.2
1,180 Zurich Insurance Co. 1,169,946 1,211,847 0.3
------------ ------------ ------
1,895,634 2,121,766 0.5
Recreation 7,500 Societe de Microelectronique et
Horlogerie (S.M.H.) AG (Registered) 255,866 1,035,752 0.3
Total Investments in Switzerland 11,857,192 15,375,045 4.0
<PAGE>
United Kingdom Banking 400,000 Bank of Scotland 1,207,550 1,307,680 0.3
300,000 National Westminster Bank PLC 1,836,513 2,222,313 0.6
------------ ------------ ------
3,044,063 3,529,993 0.9
Building Materials 500,000 Spring Ram Corp. PLC 1,450,088 557,250 0.1
& Components 111,111 Spring Ram Corp. (Rights) (b) 0 34,673 0.0
------------ ------------ ------
1,450,088 591,923 0.1
Business & Public 125,000 Carlton Communications PLC (Ordinary) 1,292,970 1,758,124 0.5
Services
Energy Sources 450,000 British Petroleum Co. PLC 2,236,817 2,454,129 0.6
150,000 Lasmo PLC (Ordinary) 356,108 291,999 0.1
------------ ------------ ------
2,592,925 2,746,128 0.7
Food & Household 200,000 Cadbury Schweppes PLC 1,741,253 1,500,860 0.4
Products
Industrial Components 400,000 Tomkins PLC 1,481,206 1,557,328 0.4
Merchandising 100,102 Boots Co. PLC 721,992 810,696 0.2
125,714 Kingfisher PLC 1,115,090 1,124,602 0.3
160,000 Lloyds Chemists PLC 679,285 822,650 0.2
275,000 Next PLC 783,755 923,549 0.2
125,000 Sainsbury (J.) PLC 1,027,202 681,703 0.2
------------ ------------ ------
4,327,324 4,363,200 1.1
Multi-Industry 150,000 Siebe PLC 1,033,849 1,370,835 0.4
Telecommunications 480,000 British Telecommunications PLC (Ordinary) 2,920,756 3,095,635 0.8
Total Investments in the United Kingdom 19,884,434 20,514,026 5.3
Total Investments in Western Europe 65,380,536 77,782,441 20.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
NORTH Face Percent of
AMERICA Amount Short-Term Securities Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United States Commercial Paper*** $ 8,889,000 Associates Corp. of North America,
3.43% due 3/01/1994 $ 8,889,000 $ 8,889,000 2.4%
US Government Federal Home Loan Bank:
& Agency Obligations 10,000,000 3.30% due 3/21/1994 9,981,667 9,981,667 2.6
10,000,000 3.30% due 3/31/1994 9,972,500 9,972,500 2.6
Federal National Mortgage Association:
4,000,000 3.05% due 3/10/1994 3,996,950 3,996,950 1.0
5,000,000 3.30% due 3/15/1994 4,993,583 4,993,583 1.3
------------ ------------ ------
28,944,700 28,944,700 7.5
Total Investments in
Short-Term Securities 37,833,700 37,833,700 9.9
Total Investments $306,806,284 380,821,342 99.2
============
Put Options Purchased (Cost--$1,253,082)**** 545,696 0.1
Other Assets Less Liabilities 2,443,495 0.7
------------ ------
Net Assets $383,810,533 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $338,715,275
and 24,615,081 shares outstanding $ 13.76
============
Class B--Based on net assets of $45,095,258
and 3,334,377 shares outstanding $ 13.52
============
<FN>
(a)Warrants entitle the Company to purchase a predetermined number
of shares of common stock. The purchase price and number of shares
are subject to adjustment under certain conditions until the expiration
date.
(b)The rights may be exercised until 3/01/1994.
*American Depositary Receipts (ADR).
**Global Depositary Shares (GDS).
***Commercial Paper is traded on a discount basis; the interest rates
shown are the discount rates paid at the time of purchase by the
Company.
****Put options purchased as of February 28, 1994 were as follows:
Par Value
Subject to Put Issue Cost Value
$13,910,786 Yen currency put option, strike
price 107.83, expiring 12/16/1994 $ 625,985 $ 317,166
13,602,975 Yen currency put option, strike
price 110.27, expiring 1/03/1995 627,097 228,530
---------- ----------
Total $1,253,082 $ 545,696
========== ==========
</TABLE>
<PAGE>
PORTFOLIO CHANGES
For the Quarter Ended February 28, 1994
Additions
Amcol Holdings Ltd.
BBC Brown Boveri & Co.
China Strategic Investment Ltd.
Colas Co.
Compania Naviera Perez Companc
S.A.C.F.I.M.F.A.
Daimler-Benz AG (ADR)
Dofasco Inc.
*DSP Software Inc.
Empresa La Moderna, S.A. de C.V. (ADR)
Ferro Corporation
Georgia-Pacific Corporation
Grupo Mexicano de Desarrollo S.A.
(Class B)
Grupo Mexicano de Desarrollo S.A.
(Class L) (ADR)
GT Chilean Growth Fund
Home Shopping Network, Inc.
Imetal Co.
IMI (Ordinary)
Indian Rayon & Industries
Lapeyre S.A.
*Mapinfo Corp.
Mercer International Inc.
MIM Holdings, Ltd.
New Zealand Telecommunications
Owens-Corning Fiberglass Corporation
OY Nokia AB
PacTel Corporation
*Park Place Systems Inc.
River Oaks Furniture Inc.
Schibsted Gruppen A/S
Sharp Corp.
Sony Corp.
Spring Ram Corp. (Rights)
Sterlite Industry, 3.50% due 6/30/1999
Swiss Reinsurance Co. 'A' (Warrants)
Swiss Reinsurance Co. 'B' (Warrants)
Telefonica de Espana Co.
Television Broadcast, Ltd.
Tenneco Inc.
Uniden Corp.
United Communication Industry
<PAGE>
Deletions
Anderson Exploration, Ltd.
Argentaria Corp. Bancaria de Espana
Besi Denki Co., Ltd.
CCL Industries
Cesar Co.
Commerce-Asset Holdings (Rights)
Compagnie Generale des Eaux (Rights)
Consorcio Grupo Dina, S.A. de C.V. (ADR)
*DSP Software Inc.
Eastman Kodak Co.
Fila Holdings S.p.A. (ADR)
Fruit of the Loom, Inc.
Infinity Broadcasting Co. (Class A)
*Mapfino Corp.
Paramount Communications, Inc.
*Park Place Systems Inc.
Rhone-Poulenc S.A.
Savoy Pictures Entertainment, Inc.
Societe de Microelectronique et Horlogerie (S.M.H.) AG (Bearer)
Technology Resources Industries BHD
[FN]
*Added and deleted in the same quarter.
PORTFOLIO INFORMATION
Worldwide
Investments as of
February 28, 1994
Percent of
Ten Largest Industries Net Assets
Banking 9.0%
Utilities 6.1
Telecommunications 5.9
Merchandising 5.0
Electronics 4.9
Business Services 4.9
Automobiles 4.8
Health and Personal Care 4.6
Broadcasting & Publishing 4.5
Multi-Industry 3.9
<PAGE>
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Toyota Motor Corp. Japan 1.5%
Tokyo Broadcasting System Japan 1.4
Daiwa Securities Co., Ltd. Japan 1.3
China Light & Power Co., Ltd Hong Kong 1.3
Mirage Resorts, Inc. United States 1.2
Sumitomo Electric Industries, Ltd. Japan 1.1
Sun Hung Kai Properties, Ltd Hong Kong 1.1
The Mitsubishi Bank, Ltd. Japan 1.1
Time Warner Inc. United States 1.0
Astra 'B' Fria Sweden 1.0
