MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Quarterly Report
August 31, 1995
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the 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.
<PAGE>
Merrill Lynch
Global Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL HOLDINGS, INC.
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Philip L. Kirstein, Senior Vice President
Donald C. Burke, Vice President
Edward F. Korff, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Chase Manhattan Bank, N. A.
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, New York 11245
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
DEAR SHAREHOLDER
Investment Outlook
The global economy slowed during the August quarter. There was some
evidence of a moderating trend during the prior quarter, which was
confirmed by economic data released in late summer. Investors'
expectations likewise diminished over the period, with the result
that equity markets were generally less buoyant than in the previous
quarter. The concern was a potential loss of corporate earnings
momentum. Also impacting the world's markets were ongoing political
uncertainties in virtually every geographic region, a global
phenomenon that is particularly worrying to investors in times of
increased economic uncertainty.
On the positive side, the rate of inflation worldwide continues to
be quite benign. Together with moderating economic growth, low rates
of inflation have permitted monetary authorities to reduce interest
rates in most major economies. We believe that more such cuts are
necessary, will be forthcoming, and will lead to a resumption of
better rates of economic growth by the end of 1995.
One of the major developments of the August quarter was the
improvement in the US dollar relative to the yen and the
Deutschemark, resulting from concerted foreign exchange market
intervention by the major central banks and an improvement in
interest rate differentials in favor of the United States. A
stronger dollar will benefit most industrialized economies
by expanding export opportunities. In particular, Japan's
economic problems appear so severe that a weaker yen may be
essential in preventing a slip into a severely deflationary domestic
economy. In targeting a stronger dollar, monetary authorities are
also exerting downward pressure on US inflation.
We believe that these trends--continued low rates of inflation and
easier monetary policies--have set the stage for a more positive
investment environment for equity markets worldwide. With lower
interest rates spurring better economic growth, corporate earnings
momentum should continue. In general, foreign stock markets appear
relatively more attractive than the United States, both on the basis
of economic prospects and valuation levels.
Investment Activities
In the United States, the strong stock market rally stalled somewhat
during the August quarter, although the unmanaged Standard & Poor's
500 rose 6.04% for the three-month period. Technology issues once
again led the US stock market's advance, and Merrill Lynch Global
Holdings, Inc.'s relatively large exposure to this sector benefited
its performance. Merger activity led to higher stock prices for bank
issues, including one of our US bank holdings. More economically
sensitive stock market segments provided varied returns, given the
uncertainties that arose regarding future economic activity.
<PAGE>
Latin American stock markets were mixed during the August quarter,
and, in some cases, experienced significant volatility as a result
of local events. We used a period of market strength to eliminate
certain holdings, while also taking advantage of periods of market
weakness to add to those investments which possess more attractive
total return potential. Despite the near-term volatility associated
with Latin American stock markets, we remain very positive about the
region's longer-term prospects.
In Europe, the strengthening of the US dollar decreased the 4.1%
gain of the local currency-denominated stock market total return (as
measured by the unmanaged Morgan Stanley Capital International
Index) to a gain of 1.5%, when translated into US dollars. The
French stock market turned in a particularly disappointing
performance because of the economic proposals of the recently
elected Chirac government. The fund's technology-oriented
investments continue to perform well, most notably Nokia Oy AS, Baan
Company N.V., ASM Lithography Holdings N.V. and Nera A/S.
With the rapid decline of the yen relative to the US dollar and
expectations that the government would announce a large economic
stimulus package in the fall, the Japanese stock market rallied
sharply during the August quarter. The US dollar's strengthening
certainly improves the outlook for economic and corporate earnings
growth in Japan. Since we anticipated a stronger US dollar, we had
increased the fund's Japanese investments in companies benefiting
from a weak yen. We also expanded positions in companies that will
benefit from increased public works expenditures.
In the other Asian stock markets, the upward momentum of the second
calendar quarter of 1995 was not sustained, and most closed lower
for the three months ended August 31. Inflationary concerns continue
to cause the region's central banks to maintain tight monetary
policies. With the economic uncertainties, overall trading volume
slowed considerably. However, we expect some improvement in investor
sentiment toward the emerging Asian economies, and we remain
enthusiastic about the region's longer-term outlook.
In Conclusion
During the August quarter, the fund's trading activity increased
significantly as we closed out smaller positions in order to focus
investments in fewer companies. Until this process is completed, the
fund's cash position may reach higher-than-normal levels. This is
simply a function of the restructuring process, not an indication
that we are adopting a more defensive investment strategy or that we
are finding few new investment opportunities. Economic prospects
have improved and so has the global investment environment, so we
expect to reduce the fund's cash position in the months ahead. As we
consolidate the portfolio's investments, our strategy is to
emphasize companies with strong financial positions that are leaders
in either world or their own geographic markets.
<PAGE>
We are also focusing on the key role that developing markets are
playing in the global investment outlook. Prospects for secular
growth are significantly greater in these regions. These, in turn,
will provide exciting investment opportunities. For example, the
development of extensive infrastructure projects will provide major
opportunities for companies involved with their financing, as well
as those involved with construction or as suppliers of materials. A
second area of opportunity results from the rapidly increasing
disposable personal income in emerging economies, suggesting that
food, beverage and other related companies will be attractive
investments.
We thank you for your investment in Merrill Lynch Global Holdings,
Inc., and we look forward to reviewing our outlook and strategy with
you again in our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Edward F. Korff)
Edward F. Korff
Vice President and
Portfolio Manager
September 22, 1995
We are pleased to announce that as of July 24, 1995, Edward F. Korff
assumed the responsibility of Portfolio Manager for Merrill Lynch
Global Holdings, Inc.
<PAGE>
PERFORMANCE DATA
About Fund
Performance
Since October 21, 1994, investors have been able to purchase shares
of the fund through the Merrill Lynch Select Pricing SM System, which
offers four pricing alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after 8 years.
* Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
Performance data for the fund's Class A and Class B Shares are
presented in the "Performance Summary," "Recent Performance Results"
and "Average Annual Total Return" tables below and on pages 5 and 6.
Data for Class C and Class D Shares are also presented in the
"Recent Performance Results" and "Aggregate Total Return" tables
below and on page 6.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for Class A and Class B
Shares for the 12-month and 3-month periods ended August 31, 1995
and for Class C and Class D Shares for the since inception and 3-
month periods ended August 31, 1995. All data in this table assume
imposition of the actual total expenses incurred by each class of
shares during the relevant period.
<PAGE>
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/95 + 4.53% - 0.95%
Five Years Ended 6/30/95 + 6.90 + 5.75
Ten Years Ended 6/30/95 +12.70 +12.09
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/95 +3.53% -0.45%
Five Years Ended 6/30/95 +5.80 +5.80
Inception (10/21/88) through 6/30/95 +8.09 +8.09
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
Aggregate
Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through 6/30/95 +0.84% -0.13%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/21/94) through 6/30/95 +1.46% -3.87%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <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
1994 13.14 12.18 0.514 0.007 - 3.25
1/1/95--8/31/95 12.18 13.61 -- -- +11.74
------ ------
Total $9.858 Total $2.556
Cumulative total return as of 8/31/95: +295.80%**
<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
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
1994 12.94 11.87 0.514 -- - 4.20
1/1/95--8/31/95 11.87 13.16 -- -- +10.87
------ ------
Total $4.063 Total $0.707
Cumulative total return as of 8/31/95: +75.42%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and
do not reflect deduction of any sales charge; results would be
lower if sales charge was deducted.
</TABLE>
<PAGE>
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
8/31/95 5/31/95 8/31/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* $13.61 $12.93 $13.59 +4.47%(1) +5.26%
ML Global Holdings, Inc. Class B Shares* 13.16 12.54 13.29 +3.41(1) +4.94
ML Global Holdings, Inc. Class C Shares* 13.16 12.54 13.08 +5.07(1) +4.94
ML Global Holdings, Inc. Class D Shares* 13.59 12.92 13.39 +5.88(1) +5.19
ML Global Holdings, Inc. Class A Shares--Total Return* +4.53(2) +5.26
ML Global Holdings, Inc. Class B Shares--Total Return* +3.41(1) +4.94
ML Global Holdings, Inc. Class C Shares--Total Return* +5.07(1) +4.94
ML Global Holdings, Inc. Class D Shares--Total Return* +5.90(3) +5.19
World Stock Index--Total Return** +8.24 +2.56
<FN>
++Investment results shown for Class C and Class D Shares are since
inception (10/21/94).
*Investment results shown do not reflect 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 $0.514 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.007 per share ordinary
income dividends and $0.514 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.003 per share ordinary
income dividends and $0.514 per share capital gains distributions.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US Dollars)
<CAPTION>
LATIN Percent of
AMERICA Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Beverages 47,000 Buenos Aires Embotelladora S.A.
& Tobacco (BAESA) (ADR)* $ 1,427,640 $ 1,116,250 0.3%
Energy 100,000 Yacimientos Petroliferos Fiscales
S.A.--Sponsored (ADR)* 2,004,250 1,762,500 0.5
Multi- 250,000 Compania Naviera Perez Companc
Industry S.A.C.F.I.M.F.A. 1,174,443 1,170,585 0.3
Total Investments in Argentina 4,606,333 4,049,335 1.1
<PAGE>
Brazil Telecommuni- 20,957,793 Telecommunicacoes Brasileiras
cations S.A.--Telebras PN (Preferred) 670,658 909,385 0.2
Total Investments in Brazil 670,658 909,385 0.2
Chile Multi-Industry 40,000 GT Chilean Growth Fund (ADR)* 1,365,000 1,580,000 0.4
Total Investments in Chile 1,365,000 1,580,000 0.4
Mexico Beverages 35,500 Coca-Cola Femsa S.A. (ADR)* 803,299 820,937 0.2
& Tobacco 50,000 Empresa La Moderna, S.A. de
C.V. (ADR)* 1,312,998 856,250 0.2
35,000 Panamerican Beverages, Inc.
(Class A) (ADR)* 991,514 1,041,250 0.3
------------ ------------ ------
3,107,811 2,718,437 0.7
Multi-Industry 176,000 Grupo Carso, S.A. de C.V. 1,477,296 1,129,427 0.3
Total Investments in Mexico 4,585,107 3,847,864 1.0
Total Investments in
Latin America 11,227,098 10,386,584 2.7
NORTH
AMERICA
Canada Telecommunications 55,000 Newbridge Networks Corp. 1,219,737 1,588,125 0.4
50,000 Northern Telecom Ltd. 1,474,875 1,837,500 0.5
------------ ------------ ------
2,694,612 3,425,625 0.9
Total Investments in Canada 2,694,612 3,425,625 0.9
United Appliances & 70,000 Corning Inc. 2,278,075 2,283,750 0.6
States Household
Durables
Automobiles 50,000 General Motors Corp. 2,284,800 2,350,000 0.6
Banking 37,500 Mercantile Bancorp., Inc. 949,375 1,696,875 0.4
70,600 UJB Financial Corp. 1,434,893 2,444,525 0.6
------------ ------------ ------
2,384,268 4,141,400 1.0
<PAGE>
Broadcasting & 40,000 Sinclair Broadcast Group, Inc. 840,000 1,200,000 0.3
Publishing 100,000 Time Warner Inc. 2,832,157 4,212,500 1.1
80,000 Viacom Inc. (Class A) 2,832,749 3,890,000 1.0
------------ ------------ ------
6,504,906 9,302,500 2.4
Business & 36,000 Microsoft Corp. 1,503,000 3,325,500 0.9
Public 100,000 Molten Metal Technology, Inc. 1,920,613 2,175,000 0.6
Services 90,000 Oracle Systems Corp. 956,438 3,600,000 0.9
30,000 PacifiCare Health Systems (Class B) 1,012,500 1,702,500 0.4
44,800 United HealthCare Corp. 737,136 1,892,800 0.5
50,000 Value Health Inc. 1,615,500 1,731,250 0.5
------------ ------------ ------
7,745,187 14,427,050 3.8
Chemicals 80,000 PPG Industries, Inc. 3,106,850 3,420,000 0.9
30,000 Rohm & Haas Co. 1,621,175 1,792,500 0.5
------------ ------------ ------
4,728,025 5,212,500 1.4
Electrical 80,000 Ultratech Stepper Inc. 814,000 3,160,000 0.8
Equipment
Electronics/ 50,000 Intel Corp. 751,250 3,068,750 0.8
Components 25,000 Motorola, Inc. 1,305,925 1,868,750 0.5
30,000 Texas Instruments Inc. 987,728 2,246,250 0.6
------------ ------------ ------
3,044,903 7,183,750 1.9
Energy Sources 20,000 Anadarko Petroleum, Inc. 724,326 955,000 0.2
90,000 Enron Oil & Gas Co. 1,526,328 2,092,500 0.6
------------ ------------ ------
2,250,654 3,047,500 0.8
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<CAPTION>
NORTH
AMERICA Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Food & Household 85,000 Performance Food Group Co. $ 1,323,721 $ 2,040,000 0.5%
States Products 20,000 Procter & Gamble Co. 1,341,200 1,387,500 0.4
(concluded) ------------ ------------ ------
2,664,921 3,427,500 0.9
<PAGE>
Forest Products/ 25,000 Georgia-Pacific Corp. 1,820,250 2,250,000 0.6
Paper & Packaging
Industrial--Other 67,500 Varity Corp. 2,071,277 3,071,250 0.8
Insurance 100,000 AFLAC, Inc. 2,812,130 4,087,500 1.1
80,000 Mercury General Corp. 2,462,000 2,980,000 0.8
------------ ------------ ------
5,274,130 7,067,500 1.9
Leisure & Tourism 80,000 McDonald's Corp. 1,931,150 2,920,000 0.8
125,000 Mirage Resorts, Inc. 1,927,525 4,296,875 1.1
50,000 Walt Disney Co. 1,653,250 2,806,250 0.7
------------ ------------ ------
5,511,925 10,023,125 2.6
Merchandising 50,000 The Home Depot, Inc. 1,259,675 1,993,750 0.5
40,000 Wal-Mart Stores, Inc. 658,900 985,000 0.3
------------ ------------ ------
1,918,575 2,978,750 0.8
Pharmaceuticals 36,900 Merck & Co. 1,331,389 1,840,387 0.5
66,700 Pfizer, Inc. 3,253,890 3,293,312 0.9
------------ ------------ ------
4,585,279 5,133,699 1.4
Railroads 30,000 CSX Corp. 1,993,665 2,475,000 0.7
20,000 Consolidated Rail Corp. 931,200 1,345,000 0.4
------------ ------------ ------
2,924,865 3,820,000 1.1
Telecommuni- 105,000 Airtouch Communications, Inc. 2,420,203 3,412,500 0.9
cations
Total Investments in the
United States 61,226,243 92,292,774 24.3
Total Investments in
North America 63,920,855 95,718,399 25.2
PACIFIC
BASIN
Australia Banking 193,102 National Australia Bank, Ltd. 1,370,290 1,658,329 0.4
<PAGE>
Broadcasting & 200,256 News Corp., Ltd. (Ordinary) 1,082,758 1,150,527 0.3
Publishing
Insurance 102,371 Lend Lease Corp. 1,295,017 1,462,677 0.4
Metals 300,000 Western Mining Corp. 1,727,089 2,014,608 0.5
Total Investments in Australia 5,475,154 6,286,141 1.6
Hong Kong Broadcasting & 165,000 Television Broadcast, Ltd. 623,809 609,650 0.2
Publishing
Multi-Industry 1,498,747 First Pacific Co., Ltd. 1,087,409 1,558,674 0.4
400,000 Hutchison Whampoa Ltd. 1,949,838 1,927,524 0.5
500,000 Swire Pacific 'A' Ltd. 2,453,484 3,746,528 1.0
------------ ------------ ------
5,490,731 7,232,726 1.9
Real Estate 400,000 Sun Hung Kai Properties, Ltd. 2,242,489 2,906,789 0.8
Utilities--Gas 1,000,000 Hong Kong and China Gas Company Ltd. 1,554,958 1,576,126 0.4
Total Investments in Hong Kong 9,911,987 12,325,291 3.3
Indonesia Telecommuni- 15,000 P.T. Indonesian Satellite Corp.
cations (ADR)* 475,787 526,875 0.1
Textiles 577,500 P.T. Indorama Synthetics (Foreign) 1,160,954 1,912,252 0.5
Total Investments in Indonesia 1,636,741 2,439,127 0.6
Japan Appliances & 300,000 Sanyo Electric Co., Ltd. 1,636,339 1,658,986 0.4
Household
Durables
Automobiles 50,000 Suzuki Motor Corp. 541,921 583,717 0.2
120,000 Toyota Motor Corp. 2,128,963 2,384,025 0.6
------------ ------------ ------
2,670,884 2,967,742 0.8
Banking 100,000 The Asahi Bank, Ltd. 1,118,033 1,044,547 0.3
120,000 The Bank of Tokyo, Ltd. 1,610,483 1,855,607 0.5
100,000 The Mitsubishi Bank, Ltd. 2,554,993 2,048,131 0.5
------------ ------------ ------
5,283,509 4,948,285 1.3
Broadcasting & 300,000 Tokyo Broadcasting System 3,736,661 4,823,349 1.3
Publishing
<PAGE>
Chemicals 300,000 Asahi Chemical Industry Co. 2,135,530 1,996,928 0.5
250,000 Sumitomo Chemical Co. 1,310,984 1,152,074 0.3
200,000 Toray Industries, Inc. 1,520,350 1,304,659 0.3
------------ ------------ ------
4,966,864 4,453,661 1.1
Electrical & 300,000 Hitachi Ltd. 3,154,652 3,287,250 0.9
Electronics 29,000 Keyence Corp. 2,038,471 3,712,238 1.0
200,000 Matsushita Electric Industrial Co. 2,837,637 3,133,640 0.8
85,000 Murata Manufacturing Co., Ltd. 2,448,383 3,394,777 0.9
120,000 Omron Corp. 2,151,001 2,642,089 0.7
180,000 Sharp Corp. 2,744,465 2,562,212 0.7
270,000 Sumitomo Electric Industry, Ltd. 2,968,251 3,511,521 0.9
------------ ------------ ------
18,342,860 22,243,727 5.9
Engineering & 30,500 Sho-Bond Construction 998,930 1,002,611 0.3
Construction
Financial Services 200,000 Daiwa Securities Co., Ltd. 2,519,694 2,519,201 0.7
200,000 Mitsubishi Trust & Banking Corp. 2,659,557 3,338,454 0.9
150,000 Yamaichi Securities Company Ltd. 1,439,098 966,206 0.3
------------ ------------ ------
6,618,349 6,823,861 1.9
Insurance 250,000 Tokio Marine & Fire Insurance
Co., Ltd. 3,142,441 2,969,790 0.8
Machinery & 200,000 Makino Milling Machine Co., Ltd. 1,422,848 1,495,136 0.4
Engineering 300,000 Mitsubishi Heavy Industries Ltd. 2,198,026 2,147,465 0.6
------------ ------------ ------
3,620,874 3,642,601 1.0
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<CAPTION>
PACIFIC
BASIN Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Japan Merchandising 35,000 Aoyama Trading Co. $ 2,287,334 $ 931,900 0.3%
(concluded) 60,000 Ito-Yokado Co., Ltd. 2,604,246 3,201,229 0.8
130,000 Marui Co., Ltd. 2,367,904 2,289,810 0.6
------------ ------------ ------
7,259,484 6,422,939 1.7
<PAGE>
Metals 1,000,000 NKK Corp. 2,741,551 2,457,757 0.6
800,000 Sumitomo Metal Industries Co., Ltd. 2,594,374 2,236,559 0.6
------------ ------------ ------
5,335,925 4,694,316 1.2
Real Estate 235,000 Mitsui Fudosan Co., Ltd. 2,924,345 3,032,258 0.8
Recreation 65,000 Sony Music Entertainment
(Japan) Inc. 2,980,367 2,982,079 0.8
Utilities-- 350 Nippon Telephone & Telegraph
Telecommuni- Corp. (Ordinary) 2,988,070 3,168,459 0.8
cations
Wholesale & 250,000 Mitsui & Co. 1,780,475 1,958,525 0.5
International
Trade
Total Investments in Japan 74,286,377 77,793,189 20.6
Malaysia Banking 583,333 Commerce Asset-Holding BHD 1,276,855 3,227,098 0.9
Building Materials 300,000 Sungei Way Holdings BHD 1,143,066 1,130,487 0.3
Telecommuni- 500,000 Technology Resources Industries
cations BHD 1,569,682 1,282,822 0.3
350,000 Telekom Malaysia BHD 1,666,231 2,455,402 0.6
------------ ------------ ------
3,235,913 3,738,224 0.9
Total Investments in Malaysia 5,655,834 8,095,809 2.1
New Telecommuni- 400,000 Telecom Corp. of New Zealand
Zealand cations Ltd. (Class C) (ADR)* 1,278,315 1,587,220 0.4
Total Investments in New Zealand 1,278,315 1,587,220 0.4
Singapore Banking 120,000 Overseas Chinese Banking Corp. 1,184,499 1,352,113 0.4
Multi-Industry 150,000 Keppel Corp. Ltd. 1,089,994 1,204,225 0.3
Real Estate 190,000 City Developments Ltd. 1,121,463 1,144,014 0.3
Total Investments in Singapore 3,395,956 3,700,352 1.0
<PAGE>
South Banking 91,875 Hanil Bank 1,273,823 1,169,891 0.3
Korea
Construction 26,790 Hyundai Engineering and
& Housing Construction Co. 539,284 1,334,301 0.4
1,834 Hyundai Engineering and
Construction Co. (New Shares) 62,264 86,777 0.0
------------ ------------ ------
601,548 1,421,078 0.4
Electronics 30,000 LG Electronics Co. 1,254,940 927,555 0.2
1,283 LG Electronics Co. (New Shares) 36,720 36,847 0.0
------------ ------------ ------
1,291,660 964,402 0.2
Steel 20,000 Pohang Iron & Steel Co., Ltd.
(ADR)* 433,700 630,000 0.2
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,548,254 0.4
Total Investments in South Korea 4,697,846 5,733,625 1.5
Thailand Banking 50,000 Bangkok Bank Company Ltd. 532,863 558,882 0.1
Building 20,000 Siam Cement Group 638,270 1,363,673 0.4
Materials
Telecommuni- 98,000 Advanced Information Services Inc. 1,098,643 1,510,100 0.4
cations
Total Investments in Thailand 2,269,776 3,432,655 0.9
Total Investments in the
Pacific Basin 108,607,986 121,393,409 32.0
WESTERN
EUROPE
Austria Energy 21,000 OMV Aktiengesellschaft 2,089,439 2,002,714 0.5
Total Investments in Austria 2,089,439 2,002,714 0.5
Finland Forest Products 40,000 Kymmene OY 1,152,579 1,177,464 0.3
Telecommuni- 14,600 Benefon OY 503,838 486,411 0.1
cations 66,400 Nokia OY AS (Preferred) 1,564,267 4,545,558 1.2
------------ ------------ ------
2,068,105 5,031,969 1.3
Total Investments in Finland 3,220,684 6,209,433 1.6
<PAGE>
France Cosmetics 33,000 Christian Dior S.A. 2,920,305 2,911,957 0.8
Energy 42,785 Total S.A. 'B' 2,673,402 2,514,669 0.7
Financial 35,000 Credit Local de France S.A. 2,781,428 2,963,514 0.8
Services
Industrial-- 65,000 Michelin S.A. 2,756,581 2,822,725 0.7
Other
Total Investments in France 11,131,716 11,212,865 3.0
Germany Building 11,500 Friedrich Grohe AG (Preferred) 2,939,739 3,097,300 0.8
Materials 90,000 Tarkett AG 2,264,876 2,295,104 0.6
------------ ------------ ------
5,204,615 5,392,404 1.4
Chemicals 10,000 BASF AG (Ordinary) 2,095,026 2,238,511 0.6
Machinery 8,500 Mannesmann AG 2,750,700 2,684,577 0.7
Machinery & 13,000 Jungheinrich AG (Preferred) 2,949,306 2,898,541 0.8
Equipment
Multi-Industry 60,000 Vereinigte Elektrizitaets &
Bergwerks AG (Veba) 2,093,058 2,296,741 0.6
Total Investments in Germany 15,092,705 15,510,774 4.1
Italy Telecommuni- 2,100,000 Telecom Italia Mobile S.p.A.
cations (Savings) 998,040 2,102,585 0.6
Total Investments in Italy 998,040 2,102,585 0.6
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US Dollars)
<CAPTION>
WESTERN
EUROPE Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Netherlands Beverages & 1,500 Heineken N.V. $ 155,655 $ 227,021 0.1%
Tobacco 13,500 Heineken N.V. (New Shares) 306,593 505,049 0.1
------------ ------------ ------
462,248 732,070 0.2
<PAGE>
Business & 51,100 Baan Company N.V. 1,370,775 1,905,487 0.5
Public
Services
Construction & 90,000 IHC Caland N.V. 1,977,215 2,622,422 0.7
Housing
Electronics 18,500 ASM Lithography Holdings N.V. 338,824 872,164 0.2
57,000 Philips N.V. 1,790,368 2,558,915 0.7
------------ ------------ ------
2,129,192 3,431,079 0.9
Metal Fabricating 25,000 Koninklijke Nederlandsche
Hoogovens en Staalfabrieken N.V. 1,136,219 1,018,918 0.3
Wholesale & 53,860 Hagemeyer N.V. 2,208,890 2,385,186 0.6
International
Trade
Total Investments in the
Netherlands 9,284,539 12,095,162 3.2
Norway Automobiles 190,000 Sensonor A/S 1,422,151 1,452,871 0.4
Telecommunications 87,500 Nera A/S 2,439,754 2,840,200 0.7
Total Investments in Norway 3,861,905 4,293,071 1.1
Spain Banking 20,000 Banco Popular Espanol S.A. 2,911,653 3,079,869 0.8
Energy 50,000 Repsol S.A. 1,662,606 1,569,856 0.4
Forest Products 106,500 Empresa Nacional de Celulosas S.A. 2,586,070 2,723,470 0.7
Total Investments in Spain 7,160,329 7,373,195 1.9
Sweden Automobiles 25,000 Autoliv AB 1,257,430 1,512,180 0.4
24,400 Catena AB 'A' 206,807 150,601 0.0
72,500 Volvo AB 'B' 1,448,465 1,441,886 0.4
------------ ------------ ------
2,912,702 3,104,667 0.8
Forest Products/ 41,000 Mo Och Domsjo AB 'B' Free 1,919,415 2,361,881 0.6
Paper & Packaging 466,666 Rottneros Bruks AB Free 551,842 704,083 0.2
------------ ------------ ------
2,471,257 3,065,964 0.8
<PAGE>
Health & 73,400 Astra AB 'B' Free 1,359,352 2,385,993 0.7
Personal Care
Multi-Industry 79,000 Kinnevik AB 'B' Free 2,666,338 2,356,737 0.6
Total Investments in Sweden 9,409,649 10,913,361 2.9
Switzerland Health & 871 Roche Holding AG 4,203,474 5,842,868 1.5
Personal Care
Insurance 5,900 Zurich Insurance AG 1,169,946 1,510,557 0.4
Total Investments in Switzerland 5,373,420 7,353,425 1.9
United Banking 337,606 National Westminster Bank PLC 2,462,274 3,078,132 0.8
Kingdom
Broadcasting & 125,000 Carlton Communications PLC (Ordinary) 1,292,970 2,008,027 0.5
Publishing
Business & 320,000 Chubb Security PLC 1,625,989 1,711,862 0.5
Public Services
Electronics 800,000 Astec (BSR) PLC 1,105,101 1,538,195 0.4
Energy 457,522 British Petroleum Co. PLC 2,287,905 3,433,659 0.9
Merchandising 700,000 House of Fraser PLC 1,899,679 1,481,598 0.4
500,000 Next PLC 1,731,357 2,981,028 0.8
------------ ------------ ------
3,631,036 4,462,626 1.2
Multi-Industry 461,811 BTR PLC 2,584,919 2,441,847 0.6
286,181 Siebe PLC 2,484,323 2,950,952 0.8
------------ ------------ ------
5,069,242 5,392,799 1.4
Total Investments in the
United Kingdom 17,474,517 21,625,300 5.7
Total Investments in Western Europe 85,096,943 100,691,885 26.5
SHORT-TERM
SECURITIES Face Amount Issue
<PAGE>
United Commercial US$14,196,000 Associates Corp. of North America,
States Paper** 5.80% due 9/01/1995 14,196,000 14,196,000 3.7
US Government 15,000,000 Federal Home Loan Mortgage Corp.,
& Agency 5.62% due 10/06/1995 14,918,042 14,918,042 3.9
Obligations**
Federal National Mortgage
Association:
10,000,000 5.65% due 9/12/1995 9,982,736 9,982,736 2.6
15,000,000 5.66% due 9/13/1995 14,971,700 14,971,700 4.0
Total Investments in Short-Term
Securities 54,068,478 54,068,478 14.2
Total Investments $322,921,360 382,258,755 100.6
============
Liabilities in Excess of Other Assets (2,371,008) (0.6)
------------ ------
Net Assets $379,887,747 100.0%
============ ======
Net Asset Class A--Based on net assets of $331,197,062 and
Value: 24,335,519 shares outstanding $ 13.61
============
Class B--Based on net assets of $44,622,868 and
3,389,897 shares outstanding $ 13.16
============
Class C--Based on net assets of $339,279 and 25,772
shares outstanding $ 13.16
============
Class D--Based on net assets of $3,728,538 and 274,443
shares outstanding $ 13.59
============
<FN>
*American Depositary Receipts (ADR).
**Commercial Paper and certain US Government & Agency Obligations
are traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Company.
</TABLE>
<PAGE>
EQUITY PORTFOLIO CHANGES
For the Quarter Ended August 31, 1995
Additions
*American Radio Systems Corp.
Bangkok Bank Company Ltd.
*C & P Homes
City Developments Ltd
Heineken N.V. (New Shares)
Hong Kong and China Gas Company Ltd.
Hutchison Whampoa Ltd.
Hyundai Engineering and Construction
Co. (New Shares)
LG Electronics Co. (New Shares)
Mannesmann AG
Nera A/S
Pfizer, Inc.
Procter & Gamble Co.
*Redhook Ale Brewery
Sho-Bond Construction
Sinclair Broadcast Group, Inc.
Sungei Way Holdings BHD
Tarkett AG
Telecom Italia Mobile S.p.A. (Savings)
Deletions
ALZA Corp.
Alcan Aluminium Ltd.
*American Radio Systems Corp.
Astra International Inc.
BBC Brown Boveri & Cie AG
Baan Company N.V. (ADR)
Bank of Scotland PLC
Bell Cablemedia PLC (ADR)
Bouygues S.A.
British Sky Broadcasting Group PLC
*C & P Homes
Cadbury Schweppes PLC
<PAGE>
Casio Computer Co.
Central Puerto (ADR)
Chevron Corp.
China Light & Power Co., Ltd.
Compagnie Generale des Eaux S.A.
Compagnie Luxembourgeoise Pour
L'Audio-Visuel et La Finance
(AUDIOFINA)
Cristaleria Espanol S.A.
Daiwa Kosho Lease Co., Ltd.
Danzas Holding AG
D'ieteren N.V.
Empresa Nacional de Electricidad S.A.
Enersis S.A. (ADR)
Ford Motor Co. (8.40% Conv. Pfd.)
Futaba Industrial Co.
Goldsborough Healthcare PLC
Grupo Mexicano de Desarrollo S.A.
(Class B)(ADR)
Grupo Mexicano de Desarrollo S.A.
(Class L)(ADR)
Grupo Simec, S.A. de C.V. (ADR)
Grupo Televisa, S.A. de C.V. (ADR)
Holderbank Financiere Glaris AG
Home Shopping Network, Inc.
Hong Kong Telecommunications Ltd.
ICB Shipping AB 'B' Free
Indian Rayon & Industries (GDR)
Jasmine International Ltd.
Johnson Controls, Inc.
La Rinascente S.p.A. RISP
Kverneland Gruppen A/S
MIM Holdings, Ltd.
Midlantic National Bank
Moulinex S.A.
Okuma Corp.
Owens-Corning Fiberglass Corp.
P.T. Indorama Synthetics (Rights)
Pacific BBA Ltd.
Palmer Wireless, Inc.
Petroleum GEO-Services A/S
Phelps Dodge Corp.
*Redhook Ale Brewery
River Oaks Furniture Inc.
SDK Engineering Co., Ltd.
Samsung Heavy Industry
Samsung Heavy Industry (New Shares)
Schlumberger Ltd.
<PAGE>
Shimizu Corp.
Signet Banking Corp.
Singapore Airlines, Ltd.
Singapore Telecommunications Ltd.
Sociedad Quimica y Minera de Chile S.A.
(B Shares) (ADR)
Societe Nationale Elf Aquitane S.A.
Sports & Recreation Inc.
Spring Ram Corp. PLC
Straits Steamship Land
Student Loan Marketing Association
Sumolis Companhia Industrial de
Frutas e Bebidas S.A.
Taisei Prefab Construction Co.
Telecom Italia S.p.A. (Ordinary)
Telecom Italia S.p.A. (Savings)
Telecommunicacoes Brasileiras S.A.--
Telebras PN (Rights)
Telefonos de Mexico, S.A. de C.V. (ADR)
Tenneco Inc.
Toys 'R' Us, Inc.
Trelleborg AB 'B'
US HealthCare Inc.
United Communication Industry
Venezolana de Prerreducidos Caroni
'Venprecar' C.A. (ADR)
Ver Ner Uitgevers N.V.
Viacom Inc. (Class B)
Viacom Inc. (VCR) (Rights)
Wella AG (Preferred)
[FN]
*Added and deleted in the same quarter.
<PAGE>
PORTFOLIO INFORMATION
Worldwide
Investments
As of 8/31/95
Percent of
Ten Largest Industries Net Assets
Telecommunications 6.4%
Banking 6.0
Electrical & Electronics 5.9
Multi-Industry 5.8
Business & Public Services 4.8
Broadcasting & Publishing 4.7
Merchandising 3.7
Insurance 3.5
Electronics 3.4
Chemicals 3.1
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Roche Holding AG Switzerland 1.5%
Tokyo Broadcasting System Japan 1.3
Nokia OY AB (Preferred) Finland 1.2
Mirage Resorts, Inc. United States 1.1
Time Warner Inc. United States 1.1
AFLAC, Inc. United States 1.1
Viacom Inc. (Class A) United States 1.0
Swire Pacific 'A' Ltd. Hong Kong 1.0
Keyence Corp. Japan 1.0
Oracle Systems Corp. United States 0.9
