MERRILL
LYNCH
GLOBAL
HOLDINGS
Quarterly Report August 31, 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
Edward H. Meyer, Director
Charles C. Reilly, 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
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
Chase MetroTech Center
Brooklyn, New York 11245
Transfer Agent
Financial Data Services, Inc.
Transfer Agency
Mutual Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
Worldwide
Investments as of
August 31, 1994
Percent of
Ten Largest Industries Net Assets
Telecommunications 6.2%
Banking 5.7
Automobiles 4.6
Business & Public Services 4.5
Multi-Industry 4.4
Broadcasting & Publishing 4.0
Merchandising 4.0
Utilities 3.1
Construction & Housing 2.9
Appliances 2.7
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
AFLAC, Inc. United States 1.5%
Roche Holding AG Switzerland 1.3
China Light & Power Co., Ltd. Hong Kong 1.3
Tokyo Broadcasting System Japan 1.2
Daiwa Securities Co., Ltd. Japan 1.2
Swire Pacific 'A' Ltd. Hong Kong 1.1
Sun Hung Kai Properties, Ltd. Hong Kong 1.1
Toyota Motor Corp. Japan 1.1
Sumitomo Electric Industries, Ltd. Japan 1.0
Sony Music Entertainment (Japan) Inc. Japan 0.9
Global Economic
Sector
Representation
As a Percentage
Of Equities as of
August 31, 1994
Services 27.1%
Consumer Goods 18.8
Capital Equipment 18.7
Finance 14.5
Materials 10.9
Multi-Industry 5.5
Energy 4.5
DEAR SHAREHOLDER
Merrill Lynch Global Holdings adopted a cautious investment
strategy during the August quarter, maintaining cash levels at
about 13% of net assets throughout the period. Evidence of
increasing economic activity worldwide and rising industrial
commodity prices heightened investors' fears of inflation.
These inflationary pressures, along with currency instability,
continued to unsettle the world's bond markets, which in turn has
hampered overall stock market performance. We believe that the
world's equity markets generally are shifting their focus away
from interest rate developments and more toward the outlook for
corporate profits. Accordingly, we are seeking investment
opportunities in sectors which should be prime beneficiaries of
worldwide economic recovery and in companies where there is the
potential for positive earnings surprises.
European Investment Activities
The European economic recovery is gathering momentum. The August
quarter has shown an acceleration of economic growth in the
United Kingdom and has produced another round of upward revisions
to growth forecasts for continental Europe. These stronger growth
forecasts suggest that the European interest rate cycles may have
bottomed over the quarter. Many countries have started to raise their
bank-lending rates, and long-term bond yields in most countries have
been rising. The German Bundesbank has essentially left their bank-
lending rate unchanged. However, while there may still be some
room to reduce this in the near term, the bulk of changes over the
next couple of years may in fact be upward.
This stronger economic scenario should be positive for investments
in certain cyclical sectors of the economy. Increased volumes and
some pricing flexibility should allow for an improved earnings
outlook for many basic material companies. Our entry into cement,
pulp, chemical and several other cyclical sectors earlier in the
year enhanced performance as many stocks in these sectors
outperformed the stock markets in general over the period. We
have continued to increase our exposure to these areas, particularly
in the pulp and paper sector, through purchases of Mo Och Domsjoe AB
'B' Free and Rottneros Bruks AB Free in Sweden, Empresa Nacional de
Celulosas S.A. in Spain and Kymmene OY Corp. in Finland. These
companies should be prime beneficiaries of the strong increases in
price and demand that we have seen in the paper industry since the
beginning of 1994.
Pacific Basin Investment Activities
Japan
The Japanese equity market traded in a fairly narrow range during
the August quarter. The main factor behind the flat market has
been the sharp rise of the yen against the US dollar with the
accompanying negative impact on the recovery of corporate profits.
Also, there has been some concern that if the yen weakens, foreign
investors--who have been net buyers since the beginning of the
year--may turn into net sellers to lock in their currency gains
by taking profits.
There are conflicting opinions regarding the outlook for the
yen/dollar exchange rate. Many market participants expect the yen
to weaken against the US dollar because the fundamentals point to
a major decline in the Japanese trade surplus. They argue that a
gradual slowdown in the US economy and an acceleration of growth
in Japan should lead to a reduction in the trade imbalance. On the
other hand, the "yen bulls" argue that because of the recent
significant slowdown in Japan's long-term capital outflows, the
basic trend for the yen against the dollar will continue upward.
In the near term, we do not expect the yen to weaken signifi-
cantly from the current level. However, even if the yen continues
to rise, the impact on the Japanese financial markets may not be
as dramatic as currently perceived. In our view, further yen
strength will lead Japanese corporations to intensify their cost-
cutting efforts to offset the negative effects of a rising
currency. Intensified restructuring should strengthen their cost
competitiveness and generate a greater profit rebound.
Meanwhile, the Japanese economic recovery is gathering momentum.
Industrial production and consumption are rising, and there are
encouraging signs that private capital investment is turning
upward. We do not believe that the potential for corporate profits
improvement is fully discounted in current stock market valuations.
From late last year, we have maintained a positive view on the
Japanese stock market and have gradually increased our Japanese
holdings. In the near term, some selling pressure may be expected
ahead of the September 30 end of the first fiscal half. In addition,
investors appear to be in need of time to digest the negative
implications of the strong yen. As a result, we currently are
underweighted in Japan, at about 25% of net assets, slightly below
the 28.7% weight in the Morgan Stanley Capital International World
Index. However, we plan to use any market weakness as an opportunity
to increase our Japanese investments in coming months.
During the August quarter, we reduced our exposure to interest
rate-sensitive areas such as electric power and banking, and
increased our weightings in cyclical areas such as steel,
chemicals and department stores. In other areas, our stock
selection has been focused on companies that have good
managements, competitive positions and promising new products.
Some of our key holdings such as Murata Manufacturing Co., Ltd.,
Sharp Corp., Mabuchi Motor Co. and Keyence Corp. have all shown
that good management can reduce costs while their competitive
products enable them to increase sales and profits even in a
harsh yen environment.
Smaller Asian Markets
After a much-needed consolidation in the first half of the year,
investor sentiment toward the small Asian markets appears to be
improving. A number of Asian equity markets have rebounded
substantially and recouped a great deal of their earlier losses.
As the Japanese stock market began correcting, more funds seemed
to be flowing back into these smaller markets. We stayed with our
overweight positions in smaller Asian markets and made only a few
changes during the August quarter. We trimmed our position in
Singapore slightly. Although Singapore has been the most stable
market in the region and its economy has continued to surprise on
the upside, we thought that it was time to take some profits there.
We increased our Australian exposure by purchasing shares of
Western Mining Corp., a major Australian resource company involved
in nickel, copper and aluminum. Australia has been benefiting
from a recovery in commodities prices, strong economic growth,
lower interest rates and productivity improvements. Overall, we
are bullish on long-term growth prospects in Asia, and continue
to find fundamentally attractive stocks.
Americas Investment Activities
We maintained an underweight position in US stocks during the
August quarter. We remain concerned that strong economic growth
in the United States will continue to fuel inflationary fears and
keep upward pressure on US interest rates. Higher interest rates
will most likely dampen the rate of growth of capital goods
expenditures. In the portfolio, we reduced the Fund's exposure to
the recreation, broadcasting and technology sectors through the
sales of our holdings in Mikohn Gaming Corp., Broadcast-
ing Partners Inc., and Novell Inc. In anticipation of the passage
of favorable Federal interstate banking legislation, we purchased
shares of Signet Banking Corp., a Virginia-based bank. The bank
has also announced plans to spin off its faster growing credit card
operation to shareholders in the near future.
Elsewhere in the Americas, we largely maintained the Fund's
investments in Latin America and Canada. In Mexico, the election
of the leading presidential candidate and strong economic
progress triggered the outperformance of its financial markets.
However, we believe it appropriate to maintain our holdings there
until the new administration's plan for Mexico's economy becomes
more clear. In Canada, currency weakness ahead of the Quebec
elections continued to create an uncertain investment environment,
so we took profits in Enerflex Systems, Ltd. and remained
underweighted there.
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
again in our upcoming annual report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
September 21, 1994
PERFORMANCE DATA
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
Class A and Class B Shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
<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
1/1/94-8/31/94 13.14 13.59 -- -- + 3.42
------ ------
Total $9.344 Total $2.549
Cumulative total return as of 8/31/94: +278.66%**
<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
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
1/1/94-8/31/94 12.94 13.29 -- -- + 2.70
------ ------
Total $3.549 Total $0.707
Cumulative total return as of 8/31/94: +69.63%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do
not reflect deduction of any sales charge; results would be lower
if sales charge was deducted.
</TABLE>
<TABLE>
Recent
Performance
Results
12 Month 3 Month
8/31/94 5/31/94 8/31/93 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Holdings Class A Shares* $13.59 $13.22 $13.13 + 7.12%(1) +2.80%
ML Global Holdings Class B Shares* 13.29 12.96 12.83 + 7.26(1) +2.55
ML Global Holdings Class A Shares--Total Return* +10.15(2) +2.80
ML Global Holdings Class B Shares--Total Return* + 9.08(3) +2.55
World Stock Index--Total Return** + 8.41 +4.61
<FN>
*Investment results shown do not reflect any sales charges;
results shown would be lower if a sales charge was included.
**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>
Average
Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/94 +13.77% + 6.38%
Five Years Ended 6/30/94 + 9.78 + 8.32
Inception (7/2/84) through 6/30/94 +13.74 +12.98
[FN]
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/94 +12.55% +8.55%
Five Years Ended 6/30/94 + 8.66 +8.66
Inception (10/21/88) through 6/30/94 + 8.92 +8.92
[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>
SCHEDULE OF INVESTMENTS
<CAPTION>
LATIN Shares Held/ Percent of
AMERICA Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Beverages & Tobacco 47,000 Buenos Aires Embotelladora S.A.(BAESA)
(ADR)* $ 1,427,640 $ 1,797,750 0.4%
Energy 50,000 Yacimientos Petroliferos Fiscales S.A.-
Sponsored (ADR)* 950,000 1,293,750 0.3
Multi-Industry 187,500 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 1,047,194 1,059,799 0.3
Telecommunications 40,000 Telecom Argentina Stet-France Telecom
S.A. (ADR)* 1,400,296 2,870,000 0.7
Utilities 30,000 Central Puerto (ADR)* 795,000 1,102,500 0.3
Total Investments in Argentina 5,620,130 8,123,799 2.0
Brazil Telecommunications 20,490,668 Telecomunicacoes Brasileiras S.A.--Telebras
PN (Preferred) 644,183 1,206,827 0.3
467,126 Telecomunicacoes Brasileiras S.A.--
Telebras PN (Rights) (b) 0 0 0.0
------------ ------------ -------
644,183 1,206,827 0.3
Total Investments in Brazil 644,183 1,206,827 0.3
Chile Chemicals 45,000 Sociedad Quimica y Minera de Chile S.A.
(B Shares) (ADR)* 1,158,750 1,254,375 0.3
Metals 35,000 Madeco S.A. (ADR)* 525,000 993,125 0.3
Multi-Industry 40,000 GT Chilean Growth Fund (ADR)* 1,365,000 1,140,000 0.3
Utilities 40,000 Enersis S.A. (ADR)* 779,762 975,000 0.2
Total Investments in Chile 3,828,512 4,362,500 1.1
Mexico Beverages & Tobacco 20,000 Coca-Cola Femsa S.A. (ADR)* 454,319 697,500 0.2
30,000 Empresa La Moderna, S.A. de C.V. (ADR)* 992,735 840,000 0.2
20,000 Panamerican Beverages, Inc. (Class A) (ADR)* 525,114 657,500 0.2
------------ ------------ -------
1,972,168 2,195,000 0.6
Broadcasting & 20,000 Grupo Televisa, S.A. de C.V. (ADR)* 500,000 1,172,500 0.3
Publishing
Engineering & 72,000 Grupo Mexicano de Desarrollo S.A. (Class B)
Construction (ADR)* 1,184,535 1,341,000 0.3
5,335 Grupo Mexicano de Desarrollo S.A. (Class L)
(ADR)* 85,707 107,367 0.0
------------ ------------ -------
1,270,242 1,448,367 0.3
Multi-Industry 150,000 Grupo Carso, S.A. de C.V. 1,320,769 1,721,566 0.4
Steel 67,400 Grupo Simec, S.A. de C.V. (ADR)* 946,876 1,887,200 0.5
Telecommunications 20,000 Telefonos de Mexico, S.A. de C.V. (ADR)* 545,000 1,255,000 0.3
Total Investments in Mexico 6,555,055 9,679,633 2.4
Venezuela Steel 52,000 Venezolana de Prerreducidos Caroni 'Venprecar'
C.A. (GDS)** 379,600 341,250 0.1
Total Investments in Venezuela 379,600 341,250 0.1
Total Investments in Latin America 17,027,480 23,714,009 5.9
NORTH
AMERICA
Canada Telecommunications 55,000 Newbridge Networks Corp. 855,730 1,753,125 0.5
50,000 Northern Telecom 1,474,875 1,768,750 0.4
------------ ------------ -------
2,330,605 3,521,875 0.9
Total Investments in Canada 2,330,605 3,521,875 0.9
United Appliances 70,000 Corning Inc. 2,278,075 2,161,250 0.5
States & Household 50,000 River Oaks Furniture Inc. 941,876 700,000 0.2
------------ ------------ -------
3,219,951 2,861,250 0.7
Automobiles 30,000 Ford Motor Co. (8.40% Conv. Pfd.) 1,500,000 2,880,000 0.7
30,000 General Motors Corp. 1,376,100 1,507,500 0.4
------------ ------------ -------
2,876,100 4,387,500 1.1
Banking 25,000 Baybanks, Inc. 941,250 1,500,000 0.4
37,500 Mercantile Bancorp., Inc. 949,375 1,434,375 0.4
80,000 Midlantic National Bank 1,912,812 2,380,000 0.6
40,000 Signet Banking Corp. 1,544,212 1,565,000 0.4
80,000 UJB Financial Corp. 1,602,623 2,320,000 0.6
------------ ------------ -------
6,950,272 9,199,375 2.4
Broadcasting & 25,000 Clear Channel Communications 707,500 1,150,000 0.2
Publishing 100,000 Time Warner Inc. 2,832,157 3,812,500 0.9
50,000 Viacom Inc. 1,468,965 1,893,750 0.4
------------ ------------ -------
5,008,622 6,856,250 1.5
Building Materials 30,000 Owens-Corning Fiberglass Corp. 1,266,113 1,068,750 0.3
Business & Public 36,000 Microsoft Corp. 1,503,000 2,088,000 0.5
Services 100,000 Molten Metal Technology, Inc. 1,920,613 2,475,000 0.6
60,000 Oracle Systems Corp. 956,438 2,557,500 0.6
30,000 PacifiCare Health Systems (Class 'B') 1,012,500 2,047,500 0.5
70,000 Sierra Health Services Inc. 1,173,182 1,837,500 0.5
44,800 United HealthCare Corp. 737,136 2,340,800 0.6
25,000 US HealthCare Inc. 987,500 1,081,250 0.3
------------ ------------ -------
8,290,369 14,427,550 3.6
Electrical 60,000 Ultratech Stepper Inc. 1,159,400 1,740,000 0.4
Equipment
Electronics/ 30,000 Intel Corp. 887,188 1,965,000 0.5
Components 20,000 Motorola, Inc. 866,290 1,080,000 0.3
20,000 Texas Instruments Inc. 1,297,950 1,557,500 0.4
------------ ------------ -------
3,051,428 4,602,500 1.2
Energy Sources 20,000 Anadarko Petroleum, Inc. 724,326 937,500 0.2
30,000 Chevron Corp. 1,323,615 1,271,250 0.3
70,000 Enron Oil & Gas Co. 1,110,128 1,347,500 0.3
------------ ------------ -------
3,158,069 3,556,250 0.8
Food & Household 65,000 Performance Food Group Co. 1,010,421 1,478,750 0.4
Products
</TABLE>
<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 Forest Products/
States Paper & Packaging 25,000 Georgia-Pacific Corp. $ 1,820,250 $ 1,859,375 0.5%
(concluded)
Industrial--Other 52,500 Johnson Controls, Inc. 2,141,876 2,789,063 0.7
65,000 Varity Corp. 1,977,065 2,453,750 0.6
------------ ------------ -------
4,118,941 5,242,813 1.3
Insurance 170,000 AFLAC, Inc. 4,370,715 6,098,750 1.5
Leisure & Tourism 100,000 McDonald's Corp. 2,385,500 2,825,000 0.7
125,000 Mirage Resorts, Inc. 1,927,525 2,640,625 0.7
50,000 Walt Disney Co. 1,653,250 2,056,250 0.5
------------ ------------ -------
5,966,275 7,521,875 1.9
Merchandising 50,000 The Home Depot, Inc. 1,259,675 2,262,500 0.5
100,000 Home Shopping Network, Inc. 1,322,974 1,175,000 0.2
25,000 Sports & Recreation Inc. 972,500 993,750 0.3
30,000 Toys 'R' Us, Inc. 750,858 1,106,250 0.3
40,000 Wal-Mart Stores, Inc. 658,900 985,000 0.2
------------ ------------ -------
4,964,907 6,522,500 1.5
Metals--Non- 40,000 Phelps Dodge Corp. 2,297,400 2,540,000 0.6
Ferrous
Multi-Industry 20,000 Tenneco Inc. 1,091,238 985,000 0.2
Oil-Field Equipment 30,000 Schlumberger Ltd. 1,752,332 1,710,000 0.4
Railroads 30,000 CSX Corp. 1,993,665 2,317,500 0.6
20,000 Consolidated Rail Corp. 931,200 1,100,000 0.2
------------ ------------ -------
2,924,865 3,417,500 0.8
Recreation US$1,500,000 United Gaming, Inc., 7.50% due 9/15/2003 1,500,000 1,230,000 0.3
Telecommuni- 100,392 Airtouch Communications, Inc. 2,288,552 2,836,074 0.7
cations
Total Investments in the United States 69,086,220 90,142,062 22.1
Total Investments in North America 71,416,825 93,663,937 23.0
PACIFIC
BASIN
Australia Banking 200,000 ANZ Banking Group 746,255 585,098 0.2
105,076 National Australia Bank, Ltd. 647,467 858,840 0.2
------------ ------------ -------
1,393,722 1,443,938 0.4
Broadcasting & 150,272 News Corp., Ltd. (Ordinary) 1,092,458 1,020,186 0.3
Publishing
Industrial--Other 400,000 Pacific BBA Ltd. 1,058,558 1,131,488 0.3
Metals 1,000,000 MIM Holdings, Ltd. 1,985,497 2,255,532 0.6
200,000 Western Mining Corp. 1,154,824 1,194,018 0.3
------------ ------------ -------
3,140,321 3,449,550 0.9
Real Estate 100,000 Lend Lease Corp. 1,265,923 1,289,301 0.3
Total Investments in Australia 7,950,982 8,334,463 2.2
Hong Kong Broadcasting & 380,000 Television Broadcast, Ltd. 1,477,469 1,794,958 0.4
Publishing
Multi-Industry 550,000 Swire Pacific 'A' Ltd. 2,654,486 4,626,514 1.1
Real Estate 1,000,000 China Strategic Investment Ltd. 840,658 550,005 0.1
620,000 Sun Hung Kai Properties, Ltd. 2,945,354 4,573,455 1.1
------------ ------------ -------
3,786,012 5,123,460 1.2
Telecommuni- 600,000 Hong Kong Telecommunications Ltd. 1,236,727 1,320,012 0.3
cations
Utilities 1,000,000 China Light & Power Co., Ltd. 4,133,650 5,163,578 1.3
Total Investments in Hong Kong 13,288,344 18,028,522 4.3
Indonesia Automobiles 400,000 Astra International Inc. 793,975 897,274 0.2
Cement 400,000 P.T. Indocement Tunggal Prakar 1,423,188 1,628,897 0.4
Textiles 330,000 Indorama Synthetics (Foreign) 975,477 1,313,471 0.3
Total Investments in Indonesia 3,192,640 3,839,642 0.9
Japan Appliances 200,000 Matsushita Electric Industrial Co. 2,837,637 3,516,132 0.9
80,000 Rinnai Corp. 1,452,936 2,357,407 0.6
50,000 Sony Corp. 2,770,665 3,051,643 0.8
100,000 Victor Co. of Japan, Ltd. 1,414,421 1,358,506 0.3
------------ ------------ -------
8,475,659 10,283,688 2.6
Automobiles 70,000 Honda Motor Co., Ltd. 1,279,114 1,160,723 0.3
200,000 Toyota Motor Corp. 2,884,634 4,315,253 1.1
------------ ------------ -------
4,163,748 5,475,976 1.4
Banking 200,000 The Asahi Bank, Ltd. 2,108,622 2,337,429 0.6
100,000 The Bank of Tokyo, Ltd. 1,301,028 1,558,286 0.4
50,000 The Mitsubishi Bank, Ltd. 1,389,313 1,308,561 0.3
------------ ------------ -------
4,798,963 5,204,276 1.3
Broadcasting & 300,000 Tokyo Broadcasting System 3,736,661 4,884,627 1.2
Publishing
Business Services 150,000 Kamigumi Co., Ltd. 1,805,921 1,663,171 0.4
Chemicals 300,000 Asahi Chemical Industry 2,135,530 2,385,376 0.6
300,000 Sumitomo Chemical Co. 1,550,853 1,720,108 0.4
------------ ------------ -------
3,686,383 4,105,484 1.0
Construction & 120,000 National House Industries 1,925,973 1,953,851 0.5
Housing 160,000 Sekisui House Ltd. 1,954,055 1,965,838 0.5
130,000 Shimizu Corp. 1,188,683 1,337,529 0.3
150,000 Taisei Prefab Construction Co. 2,333,723 1,827,989 0.5
------------ ------------ -------
7,402,434 7,085,207 1.8
Electrical 100,000 Daimei Telecom Engineering 1,398,698 1,358,506 0.3
Equipment 270,000 Sumitomo Electric Industry, Ltd. 2,968,251 4,045,550 1.0
------------ ------------ -------
4,366,949 5,404,056 1.3
Electrical & 200,000 Hitachi Ltd. 2,079,745 1,981,820 0.5
Electronics
</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 Electronics 150,000 Casio Computer Co. $ 1,853,397 $ 1,857,956 0.5%
(concluded) 29,000 Keyence Corp. 2,038,471 3,215,463 0.8
70,000 Murata Manufacturing Co., Ltd. 2,121,289 3,034,662 0.8
200,000 Sharp Corp. 3,027,869 3,636,000 0.9
70,000 Uniden Corp. 2,226,522 2,097,693 0.5
------------ ------------ -------
11,267,548 13,841,774 3.5
Financial Services 300,000 Daiwa Securities Co., Ltd. 3,725,815 4,704,825 1.2
170,000 Mitsubishi Trust & Banking Corp. 2,229,016 2,547,198 0.6
310,000 Yamaichi Securities Company Ltd. 2,982,597 2,666,167 0.7
------------ ------------ -------
8,937,428 9,918,190 2.5
Industrial 100,000 Futaba Industrial Co. 1,670,788 1,987,813 0.5
Components 40,000 Mabuchi Motor Co. 2,349,535 2,968,734 0.7
------------ ------------ -------
4,020,323 4,956,547 1.2
Insurance 200,000 Tokio Marine & Fire Insurance Co., Ltd. 2,573,815 2,477,275 0.6
Machinery & 63,300 Aichi Corp. 719,222 771,411 0.1
Engineering 200,000 Makino Milling Machine 1,422,848 1,736,090 0.4
------------ ------------ -------
2,142,070 2,507,501 0.5
Machinery & 300,000 Mitsubishi Heavy Industries Ltd. 2,198,026 2,352,412 0.6
Equipment
Merchandising 35,000 Aoyama Trading Co. 2,287,334 1,363,500 0.3
60,000 Ito--Yokado Co., Ltd. 2,604,246 3,176,506 0.8
70,000 Marui Co., Ltd. 1,291,049 1,300,569 0.3
------------ ------------ -------
6,182,629 5,840,575 1.4
Metals 1,000,000 NKK Corp. 2,741,551 2,846,868 0.7
300,000 Sumitomo Metal Industries Co., Ltd. 1,008,907 1,021,876 0.3
------------ ------------ -------
3,750,458 3,868,744 1.0
Real Estate 200,000 Mitsui Fudosan 2,482,763 2,417,341 0.6
Recreation 63,000 Sony Music Entertainment (Japan) Inc. 2,865,499 3,826,191 0.9
Utilities--Tele- 200 Nippon Telephone & Telegraph Corp.
communications (Ordinary) 1,772,271 1,821,996 0.5
Wholesale & Inter- 200,000 Mitsui & Co. 1,346,038 1,722,106 0.4
national Trade
Total Investments in Japan 90,055,331 101,638,957 25.2
Malaysia Banking 583,333 Commerce Asset-Holding BHD 1,276,855 2,804,376 0.7
Construction & 150,000 Ekran BHD 573,279 1,125,660 0.3
Housing
Telecommunications 400,000 Telekom Malaysia BHD 1,837,601 3,345,710 0.8
Utilities 200,000 Tenaga Nasional BHD 879,094 1,125,660 0.3
Total Investments in Malaysia 4,566,829 8,401,406 2.1
New Zealand Telecommunications 400,000 Telecom Corp. of New Zealand Ltd.
(Class C) (ADR)* 1,278,315 1,251,744 0.3
Total Investments in New Zealand 1,278,315 1,251,744 0.3
Singapore Air Transport 100,000 Singapore Airlines, Ltd. 383,769 940,313 0.2
Banking 50,000 Overseas Chinese Banking Corp. 482,800 496,832 0.1
Multi-Industry 300,000 Amcol Holdings Ltd. 838,802 664,221 0.2
120,000 Keppel Corp. Ltd. 851,434 888,296 0.2
------------ ------------ -------
1,690,236 1,552,517 0.4
Shipping 350,000 Straits Steamship Land 788,684 1,041,014 0.3
Telecommunications 400,000 Singapore Telecommunications Ltd. 907,320 928,309 0.2
Total Investments in Singapore 4,252,809 4,958,985 1.2
South Korea Aerospace 20,000 Samsung Aerospace Industries 821,485 712,055 0.2
2,983 Samsung Aerospace Industries (New) 77,985 96,142 0.0
------------ ------------ -------
899,470 808,197 0.2
Banking 75,640 Hanil Bank 1,123,122 982,706 0.2
Building Materials 32,500 Hankuk Glass Industry Company 706,875 601,250 0.2
Construction & 26,265 Hyundai Engineering and Construction Co. 539,284 1,236,965 0.3
Housing
Ship Building 14,500 Samsung Heavy Industry 737,089 793,017 0.2
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,589,407 0.4
Total Investments in South Korea 5,102,955 6,011,542 1.5
Thailand Building Materials 48,500 Jasmine Ltd. 670,901 941,710 0.2
35,000 Siam Cement Group 1,001,563 2,077,907 0.5
------------ ------------ -------
1,672,464 3,019,617 0.7
Electrical 30,000 United Communication Industry 519,292 867,759 0.2
Equipment
Telecommunications 20,000 Advanced Information Service 626,971 875,749 0.2
Total Investments in Thailand 2,818,727 4,763,125 1.1
Total Investments in the Pacific
Basin 132,506,932 157,228,386 38.8
SOUTHEAST
ASIA
India Electrical $ 75,000 Sterlite Industry, 3.50% due
Equipment 6/30/1999 75,000 87,000 0.0
Textiles 40,000 Indian Rayon & Industries 844,207 890,000 0.2
Total Investments in India 919,207 977,000 0.2
Total Investments in Southeast Asia 919,207 977,000 0.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
WESTERN Shares Held/ Percent of
EUROPE Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Austria Energy 11,000 OMV Aktiengesellschaft $ 997,161 $ 1,020,261 0.3%
Total Investments in Austria 997,161 1,020,261 0.3
Belgium Automobiles 2,500 D'ieteren N.V. 214,059 199,816 0.1
Broadcasting & 900 Audiofina 508,088 506,302 0.1
Publishing
Total Investments in Belgium 722,147 706,118 0.2
Denmark Telecommuni- 4,000 GN Store Nord Holding (GREAT NORDIC) 335,774 349,751 0.1
cations 15,000 Tele Danmark A/S "B" 710,499 806,193 0.2
------------ ------------ -------
1,046,273 1,155,944 0.3
Total Investments in Denmark 1,046,273 1,155,944 0.3
Finland Food & Household 29,000 Huhtamaki Corp. 654,738 892,255 0.2
Products
Forest Products 20,000 Kymmene OY Corp. 517,588 548,718 0.1
Telecommunications 780 Benefon OY 256,369 262,914 0.1
10,600 OY Nokia AB 808,258 1,152,896 0.3
------------ ------------ -------
1,064,627 1,415,810 0.4
Total Investments in Finland 2,236,953 2,856,783 0.7
France Appliances 25,000 Moulinex 536,491 572,777 0.1
Building Materials 5,000 Imetal Co. 502,687 540,390 0.1
8,500 Lapeyre S.A. 496,706 528,546 0.1
------------ ------------ -------
999,393 1,068,936 0.2
Business & Public 17,140 Compagnie Generale des Eaux 1,574,432 1,776,330 0.4
Services
Energy 12,000 Societe Nationale Elf Aquitane 917,095 923,846 0.2
Engineering & 2,325 Colas Co. 411,884 436,731 0.1
Construction
Financial Services 6,250 Credit Local de France 447,395 488,110 0.1
Total Investments in France 4,886,690 5,266,730 1.1
Germany Automobiles 43,000 Daimler-Benz AG (ADR)* 2,010,250 2,279,000 0.6
Banking 2,000 Deutsche Bank AG 651,283 927,672 0.2
Building Materials 6,000 Friedrich Grohe (Preferred) 1,478,231 1,801,557 0.4
Chemicals 7,500 BASF AG (Ordinary) 1,532,126 1,571,853 0.4
Health & Personal 3,000 Wella AG (Preferred) 1,257,499 2,036,955 0.5
Care
Multi-Industry 5,000 Vereinigte Elektrizitaets & Bergwerks
AG (Veba) 1,678,120 1,764,222 0.4
Total Investments in Germany 8,607,509 10,381,259 2.5
Italy Broadcasting & 50,000 Arnoldo Mondadori Editore 475,059 454,344 0.1
Publishing
Merchandising 125,000 La Rinascente RISP 285,348 423,179 0.1
Telecommuni- 300,000 Telecom Italia SPA (Ordinary) 280,800 877,049 0.2
cations 500,000 Telecom Italia SPA (Savings) 978,610 1,232,361 0.3
------------ ------------ -------
1,259,410 2,109,410 0.5
Total Investments in Italy 2,019,817 2,986,933 0.7
Netherlands Banking 26,000 ABN Amro Bank N.V. 770,721 878,745 0.2
Beverages & 20,000 Heineken N.V. 2,176,767 2,724,144 0.7
Tobacco
Construction & 90,000 IHC Caland N.V. 1,977,215 2,198,838 0.5
Housing
Electronics 37,000 Philips Industries Inc. 1,138,827 1,202,505 0.3
Shipping 30,000 Koninklijke Van Ommeren NV 911,131 826,045 0.2
Total Investments in the Netherlands 6,974,661 7,830,277 1.9
Norway Broadcasting & 41,400 Schibsted Gruppen A/S 455,529 466,169 0.1
Publishing
Multi-Industry 100,000 Kverneland Gruppen A/S 1,315,522 1,299,245 0.3
40,000 Unitor Ships Service 796,035 704,480 0.2
------------ ------------ -------
2,111,557 2,003,725 0.5
Total Investments in Norway 2,567,086 2,469,894 0.6
Portugal Beverages & 20,000 Sumolis Companhia Industrial de
Tobacco Frutas e Bebidas S.A. 221,229 217,256 0.1
Total Investments in Portugal 221,229 217,256 0.1
Spain Building Materials 19,000 Cristaleria Espanol S.A. 1,200,734 1,197,479 0.3
Energy & Petroleum 50,000 Repsol S.A. 1,662,606 1,604,278 0.4
Forest Products 56,500 Empresa Nacional de Celulosas S.A. 1,134,583 1,342,361 0.4
Telecommunications 100,000 Telefonica de Espana Co. 1,347,830 1,386,555 0.3
Utilities 58,060 Empresa Nacional de Electricidad S.A. 2,056,698 2,594,736 0.6
Total Investments in Spain 7,402,451 8,125,409 2.0
Sweden Automobiles 10,000 Autoliv AB 305,063 291,062 0.1
30,000 Catena AB 254,273 267,777 0.1
72,500 Volvo AB 1,448,465 1,369,287 0.3
------------ ------------ -------
2,007,801 1,928,126 0.5
Engineering & 30,000 SKF AB 'B' Free 540,907 539,436 0.1
Construction
Forest Products/ 48,000 Mo Och Domsjoe AB 'B' Free 2,077,396 2,160,848 0.5
Paper & Packaging 550,000 Rottneros Bruks AB Free 561,856 686,584 0.2
------------ ------------ -------
2,639,252 2,847,432 0.7
Health & Personal 113,400 Astra 'B' Fria 2,120,584 2,567,171 0.6
Care
Shipping 37,000 ICB Shipping AB 'B' Free 350,695 330,259 0.1
Total Investments in Sweden 7,659,239 8,212,424 2.0
Switzerland Building Materials 700 Holderbank Financiere Glaris Ltd. 476,875 505,745 0.1
3,500 Holderbank Financiere Glaris Ltd.
(Warrants) (a) 0 4,469 0.0
------------ ------------ -------
476,875 510,214 0.1
Electrical 2,000 BBC Brown Boveri & Co. 1,542,228 1,812,993 0.5
Equipment
Food & Household 1,100 Nestle AG 439,670 1,013,669 0.3
Products
Health & Personal 1,131 Roche Holding AG 5,458,242 5,181,449 1.3
Care
Insurance 2,000 Swiss Reinsurance 725,688 824,634 0.2
1,180 Zurich Insurance Co. 1,169,946 1,140,563 0.3
------------ ------------ -------
1,895,634 1,965,197 0.5
Shipping 2,000 Danzas Holding AG 512,927 507,698 0.2
Total Investments in Switzerland 10,325,576 10,991,220 2.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
WESTERN EUROPE Shares Held/ Percent of
(concluded) Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Banking 300,000 Bank of Scotland $ 916,166 $ 963,009 0.2%
Kingdom 340,000 National Westminster Bank PLC 2,114,246 2,600,586 0.6
------------ ------------ -------
3,030,412 3,563,595 0.8
Building Materials 500,000 Spring Ram Corp. PLC 1,450,088 391,654 0.1
& Components
Business & Public 29,000 Bell Cablemedia PLC 493,000 630,750 0.2
Services 125,000 Carlton Communications PLC (Ordinary) 1,292,970 1,647,253 0.4
110,000 Chubb Security PLC 566,267 559,221 0.1
------------ ------------ -------
2,352,237 2,837,224 0.7
Electronics 800,000 Astec (BSR) 1,105,101 1,093,561 0.3
Energy Sources 500,000 Aran Energy PLC 246,460 307,180 0.1
450,000 British Petroleum Co. PLC 2,236,817 2,861,382 0.7
------------ ------------ -------
2,483,277 3,168,562 0.8
Food & Household 200,000 Cadbury Schweppes PLC 1,741,253 1,505,182 0.4
Products
Health & Personal 200,000 Goldsborough Healthcare PLC 506,362 436,196 0.1
Care
Merchandising 50,102 Boots Co. PLC 362,334 437,085 0.1
570,000 House of Fraser PLC 1,851,700 1,934,773 0.5
350,000 Next PLC 1,098,607 1,451,425 0.4
------------ ------------ -------
3,312,641 3,823,283 1.0
Multi-Industry 350,000 BTR PLC 2,065,257 2,075,001 0.5
150,000 Siebe PLC 1,033,849 1,331,625 0.3
------------ ------------ -------
3,099,106 3,406,626 0.8
Total Investments in the United Kingdom 19,080,477 20,225,883 5.0
Total Investments in Western Europe 74,747,269 82,446,391 20.3
<CAPTION>
SHORT-TERM
SECURITIES Issue
<S> <S> <C> <S> <C> <C> <C>
United Commercial Paper*** $12,836,000 Associates Corp. of North America, 4.85%
States due 9/01/1994 12,836,000 12,836,000 3.1
US Government &
Agency Obligations*** Federal Home Loan Mortgage Association:
10,000,000 4.60% due 9/13/1994 9,984,666 9,984,666 2.5
15,000,000 4.63% due 9/19/1994 14,965,275 14,965,275 3.7
15,000,000 Federal National Mortgage Association, 4.66%
due 9/28/1994 14,947,575 14,947,575 3.6
------------ ------------ -------
39,897,516 39,897,516 9.8
Total Investments in Short-Term
Securities 52,733,516 52,733,516 12.9
<CAPTION>
Par Premiums
OPTIONS Value Paid
<S> <C> <S> <C> <C> <C>
Currency Put Japanese Yen:
Options Purchased 13,910,786 Expiring December 1994 at YEN 107.80 625,985 36,168 0.0
13,602,974 Expiring January 1995 at YEN 110.27 627,097 21,765 0.0
Total Options Purchased 1,253,082 57,933 0.0
Total Investments $350,604,311 410,821,172 101.1
============
Liabilities in Excess of Other Assets (4,801,185) (1.1)
------------ -------
Net Assets $406,019,987 100.0%
============ =======
Net Asset Value: Class A--Based on net assets of $348,171,411 and
25,612,018 shares outstanding $ 13.59
============
Class B--Based on net assets of $57,848,576 and
4,352,101 shares outstanding $ 13.29
============
<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 September 22, 1994.
*American Depositary Receipts (ADR).
**Global Depositary Shares (GDS).
***Commercial Paper and certain US Government & Agency Obligations
are traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Company.
</TABLE>
PORTFOLIO CHANGES
For the Quarter Ended August 31, 1994
Additions
Aran Energy PLC
Arnoldo Mondadori Editore
Astec (BSR)
Audiofina
Autoliv AB
BASF AG (Ordinary)
Bell Cablemedia PLC
Benefon OY
Catena AB
Chubb Security PLC
Credit Local de France
Cristaleria Espanol S.A.
Danzas Holding AG
D'ieteren N.V.
Empresa Nacional de Celulosas S.A.
Hankuk Glass Industry Company
Holderbank Financiere Glaris Ltd.
Holderbank Financiere Glaris Ltd.
(Warrants)
Honda Motor Co., Ltd.
House of Fraser PLC
ICB Shipping AB 'B' Free
Kverneland Gruppen A/S
Kymmene OY Corp.
Marui Co., Ltd.
Mo Och Domsjoe AB 'B' Free
Moulinex
Nippon Telephone & Telegraph Corp.
(Ordinary)
OMV Aktiengesellschaft
Overseas Chinese Banking Corp.
Pacific BBA Ltd.
Philips Industries Inc.
Rottneros Bruks AB Free
Signet Banking Corp.
SKF AB 'B' Free
Sumitomo Chemical Co.
Sumitomo Metal Industries Co., Ltd.
Sumolis Companhia Industrial de Frutas e
Bebidas S.A.
Vereinigte Elektrizitaets & Bergwerks AG
(Veba) (Warrants)
Western Mining Corp.
Yamaichi Securities Company Ltd.
Deletions
British Telecommunications PLC Ordinary
Broadcasting Partners Inc. (Class A)
Canal Plus
The Development Bank of Singapore Ltd.
Edaran Otomobil Nasional BHD
Electrabel NPV
Enerflex Systems, Ltd.
Hennes & Mauritz
Hornbach AG (Preferred)
Hornbach Baumarkt AG
IMI (Ordinary)
Kandenko Co., Ltd.
Kingfisher PLC
Kon Bols Wessanen
Lloyds Chemists PLC
Mikohn Gaming Corp.
Novell Inc.
Orbital Engine Corp., Ltd.
Oriental Press Group
Pacific Telesis Group
Societe de Microelectronique et Horlogerie
(S.M.H.) AG (Registered)
St. George Bank, Ltd.
Swiss Bank Corp. (Bearer)
Tohoku Electric Power Co.
