MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Quarterly Report
February 28, 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
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
Financial Data Services, Inc.
Transfer Agency Mutual Funds Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
Worldwide Investments
As of 2/28/95
Percent of
Ten Largest Industries Net Assets
Telecommunications 7.0%
Banking 7.0
Electronics 5.4
Business & Public Services 4.9
Multi-Industry 4.9
Broadcasting & Publishing 4.8
Merchandising 3.9
Automobiles 3.6
Chemicals 3.5
Insurance 3.0
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
AFLAC, Inc. United States 1.8%
Roche Holding AG Switzerland 1.4
Tokyo Broadcasting System Japan 1.1
Sun Hung Kai Properties, Ltd. Hong Kong 1.1
China Light & Power, Co., Ltd. Hong Kong 1.1
Time Warner Inc. United States 1.1
Swire Pacific 'A' Ltd. Hong Kong 1.0
BASF AG (Ordinary) Germany 0.9
Sumitomo Electric Industry, Ltd. Japan 0.9
Mirage Resorts, Inc. United States 0.8
DEAR SHAREHOLDER
World equity markets remained volatile during the February quarter
as investors continued to balance the trade-off between stronger
economic growth and higher interest rates. US equity markets rose
sharply over the period amid suggestions that the US Federal Reserve
Board may be at or near the end of its policy of increasing short-
term interest rates. In the coming months, investors are likely to
continue to focus closely on economic data and inflationary trends
to assess whether monetary policy is sufficiently tight and whether
the US economy can achieve a soft landing. In Europe, economic
growth accelerated during the February quarter. However, European
stock market performance was mixed as investors focused on currency
instability. In Japan, the equity market declined as investor
sentiment turned negative following the Kobe earthquake. The
earthquake may have the effect of pushing back the economic recovery
in Japan by several quarters, but also may strengthen any subsequent
recovery as "reconstruction" demand provides a boost to economic
growth. Finally, the Latin American markets fell sharply as investor
confidence was badly shaken after the new Zedillo administration in
Mexico first devalued the Mexican peso and then let it float freely
against the US dollar.
<PAGE>
Portfolio Matters
Following the Kobe earthquake in mid-January, we adopted a more
cautious near-term stance toward Japanese equities and reduced our
Japanese weighting to 21.5% of net assets from 24.2% at the end of
the November quarter. While the total economic damage from the
earthquake is not yet clear, its impact will inevitably be negative
for industrial production/shipments and consumer sentiment in the
short term. Corporate earnings are also likely to be revised
downward. Additionally, the news of the collapse of Barings PLC at
the end of February stemming from losses on Japanese derivatives has
added a new element of uncertainty to the market. We reduced our
holding in Toyota Motor Corp. and trimmed our exposure to the
brokerage sector given the subdued outlook for trading activity in
Japanese equities in the near future. With investors anticipating a
slowing of US demand, we also reduced our exposure to the technology
sector by selling Sony Corp. and Victor Co. of Japan, Ltd.
We maintained our overweighted position in the smaller Asian markets
where we remain optimistic about the region's long-term growth pros-
pects. After selling off sharply in late November and early
December, most of these markets have rebounded since the end of
January. The fund's core investments, in companies such as Swire
Pacific Ltd. and Sun Hung Kai Properties, Ltd. in Hong Kong, Telekom
Malaysia BHD in Malaysia and Siam Cement Group and Advanced
Information Service in Thailand, showed strong performances during
the February quarter. While we made no major changes to our holdings
in the region during the quarter, we reduced our Malaysian exposure
somewhat through sales of Tenaga Nasional BHD and Ekran BHD.
Currency volatility was the main focus of investors in the European
markets during the quarter. The German Deutschemark rose about 7%
versus the US dollar during the period. Conversely, European
countries with weaker economies such as Italy and Spain saw their
currencies depreciate about 10% against the German Deutschemark
during the period. The portfolio benefited from being overweighted
in assets in the Deutschemark bloc countries of Germany, Switzerland
and the Netherlands as well as from being underweighted in the
United Kingdom. We generally maintained relative country weightings
within Europe during the period and have continued to emphasize
companies in the economically sensitive sectors. Economic growth in
Europe continued to exceed expectations, and companies in these
sectors should be prime beneficiaries of this trend.
Our underweighting in the North American equity markets hurt the
fund's performance during the February quarter as most stock market
averages in the United States rose to record highs. Short-term
interest rates continued to move higher during the quarter, and in
anticipation of slowing US economic growth, we maintained a somewhat
defensive investment posture. We used the strong advances in many of
our technology holdings as an opportunity to take profits, and thus
reduced positions in Intel Corp., Motorola, Inc., Newbridge Networks
Corp. and Ultratech Stepper Inc. We also eliminated positions in
Sierra Health Services Inc. and Clear Channel Communications Inc.,
which had reached our price targets. We initiated a position in Rohm
& Haas Co., a chemical company which we expect to benefit from
reduced raw material costs and higher volumes.
<PAGE>
The Latin American markets have continued to perform poorly and our
holdings there have contributed negatively to returns. While we
remain positive on the longer-term growth prospects for the region,
it is probably too early to aggressively add to positions. We did
establish a small position in the convertible debt of Empresas ICA,
Mexico's largest construction company. This security provides an
attractive US dollar yield as well as equity participation in the
event the company's stock price and/or the Mexican peso recovers.
Otherwise, our Latin American holdings remain unchanged from the
previous quarter.
In Conclusion
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 May semi-annual report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
March 20, 1995
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.
<PAGE>
* 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 on pages 4 and 5. Data for
Class C and Class D Shares are also presented in the "Recent
Performance Results" and "Aggregate Total Return" tables on pages 4
and 5.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for Class A and Class B
Shares for the 12-month and 3-month periods ended February 28, 1995
and for Class C and Class D Shares for the since inception and 3-
month periods ended February 28, 1995. All data in this table assume
imposition of the actual total expenses incurred by each class of
shares during the relevant period.
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
2/28/95 11/30/94 2/28/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* $11.84 $12.82 $13.76 -10.24%(1) -3.66%(1)
ML Global Holdings, Inc. Class B Shares* 11.51 12.50 13.52 -11.09(1) -3.84(1)
ML Global Holdings, Inc. Class C Shares* 11.52 12.51 13.08 -8.02(1) -3.83(1)
ML Global Holdings, Inc. Class D Shares* 11.84 12.81 13.39 -7.76(1) -3.58(1)
ML Global Holdings, Inc. Class A Shares--Total Return* -10.19(2) -3.61(2)
ML Global Holdings, Inc. Class B Shares--Total Return* -11.09(1) -3.84(1)
ML Global Holdings, Inc. Class C Shares--Total Return* - 8.02(1) -3.83(1)
ML Global Holdings, Inc. Class D Shares--Total Return* - 7.74(3) -3.56(3)
World Stock Index--Total Return** - 0.20 +0.83
<PAGE>
<FN>
*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.
++Investment results shown for Class C and Class D Shares are since
inception (10/21/94).
(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>
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
1994 13.14 12.18 0.514 0.007 - 3.25
1/1/95--2/28/95 12.18 11.84 -- -- - 2.79
------ ------
Total $9.858 Total $2.556
Cumulative total return as of 2/28/95: +244.33%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
include sales charge; results would be lower if sales charge was
included.
</TABLE>
<PAGE>
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
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--2/28/95 11.87 11.51 -- -- - 3.03
------ ------
Total $4.063 Total $0.707
Cumulative total return as of 2/28/95: +53.42%**
<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>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/94 - 3.25% - 8.33%
Five Years Ended 12/31/94 + 5.89 + 4.75
Ten Years Ended 12/31/94 +13.07 +12.46
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/94 -4.20% -7.88%
Five Years Ended 12/31/94 +4.82 +4.82
Inception (10/21/88) through
12/31/94 +7.68 +7.68
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate
Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through
12/31/94 -5.23% -6.14%
[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
12/31/94 -5.09% -10.07%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US Dollars)
<CAPTION>
LATIN Shares Held/ Percent of
AMERICA Industries Face Amount 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 $ 1,233,750 0.3%
Energy 70,000 Yacimientos Petroliferos
Fiscales S.A.--Sponsored
(ADR)* 1,458,700 1,330,000 0.4
Multi-Industry 187,500 Compania Naviera Perez
Companc S.A.C.F.I.M.F.A. 1,047,194 600,000 0.2
Telecommunications 40,000 Telecom Argentina Stet--
France Telecom S.A. (ADR)* 1,400,296 1,430,000 0.4
Utilities 30,000 Central Puerto (ADR)* 795,000 412,500 0.1
Total Investments in Argentina 6,128,830 5,006,250 1.4
Brazil Telecommunications 20,957,793 Telecommunicacoes Brasileiras
S.A.--Telebras PN (Preferred) 670,658 619,600 0.2
Total Investments in Brazil 670,658 619,600 0.2
Chile Chemicals 45,000 Sociedad Quimica y Minera
de Chile S.A. (B Shares) (ADR)* 1,158,750 1,423,125 0.4
Metals 35,000 Madeco S.A. (ADR)* 525,000 822,500 0.2
Multi-Industry 40,000 GT Chilean Growth Fund (ADR)* 1,365,000 1,150,000 0.3
Utilities 40,000 Enersis S.A. (ADR)* 779,762 930,000 0.3
Total Investments in Chile 3,828,512 4,325,625 1.2
Mexico Beverages & 20,000 Coca-Cola Femsa S.A. (ADR)* 454,319 300,000 0.1
Tobacco 30,000 Empresa La Moderna, S.A. de
C.V. (ADR)* 992,735 315,000 0.1
20,000 Panamerican Beverages, Inc.
(Class A) (ADR)* 525,114 487,500 0.1
------------ ------------ ------
1,972,168 1,102,500 0.3
<PAGE>
Broadcasting & 30,000 Grupo Televisa, S.A. de C.V.
Publishing (ADR)* 953,350 495,000 0.1
Engineering & US$ 2,500,000 Empresas ICA Sociedad Contro-
Construction ladora, S.A. de C.V., 5.00%
due 3/15/2004 991,499 775,000 0.2
72,000 Grupo Mexicano de Desarrollo
S.A. (Class B) (ADR)* 1,184,535 198,000 0.1
5,335 Grupo Mexicano de Desarrollo
S.A. (Class L) (ADR)* 85,974 16,005 0.0
------------ ------------ ------
2,262,008 989,005 0.3
Multi-Industry 150,000 Grupo Carso, S.A. de C.V. 1,320,769 556,492 0.2
Steel 67,400 Grupo Simec, S.A. de C.V.
(ADR)* 946,876 269,600 0.1
Telecommuni- 30,000 Telefonos de Mexico, S.A.
cations de C.V. (ADR)* 1,109,350 828,750 0.2
Total Investments in Mexico 8,564,521 4,241,347 1.2
Venezuela Steel 52,000 Venezolana de Prerre-
ducidos Caroni 'Venprecar'
C.A. (ADR)* 379,600 286,000 0.1
Total Investments in
Venezuela 379,600 286,000 0.1
Total Investments in
Latin America 19,572,121 14,478,822 4.1
NORTH
AMERICA
Canada Metals 45,000 Alcan Aluminium Ltd. 1,123,950 1,091,250 0.3
Telecommunications 35,000 Newbridge Networks Corp. 570,938 1,185,625 0.3
50,000 Northern Telecom 1,474,875 1,706,250 0.5
------------ ------------ ------
2,045,813 2,891,875 0.8
Total Investments in
Canada 3,169,763 3,983,125 1.1
<PAGE>
United Appliances & 70,000 Corning Inc. 2,278,075 2,248,750 0.6
States Household 50,000 River Oaks Furniture Inc. 941,875 637,500 0.2
------------ ------------ ------
3,219,950 2,886,250 0.8
Automobiles 30,000 Ford Motor Co. (8.40%
Conv. Pfd.) 1,500,000 2,546,250 0.7
50,000 General Motors Corp. 2,284,800 2,131,250 0.6
------------ ------------ ------
3,784,800 4,677,500 1.3
Banking 37,500 Mercantile Bancorp., Inc. 949,375 1,382,813 0.4
60,000 Midlantic National Bank 1,473,090 1,845,000 0.5
70,000 Signet Banking Corp. 2,632,262 2,546,250 0.7
70,600 UJB Financial Corp. 1,434,893 1,994,450 0.6
------------ ------------ ------
6,489,620 7,768,513 2.2
Broadcasting & 100,000 Time Warner Inc. 2,832,157 3,862,500 1.1
Publishing 54,000 Viacom Inc. (Class A) 1,629,189 2,497,500 0.7
26,000 Viacom Inc. (Class B) 993,242 1,163,500 0.3
80,000 Viacom Inc. (VCR) (Rights)(a) 104,325 80,000 0.0
------------ ------------ ------
5,558,913 7,603,500 2.1
Building Materials 30,000 Owens-Corning Fiberglass Corp. 1,266,112 1,008,750 0.3
Business & Public 36,000 Microsoft Corp. 1,503,000 2,263,500 0.6
Services 100,000 Molten Metal Technology, Inc. 1,920,613 1,725,000 0.5
90,000 Oracle Systems Corp. 956,438 2,812,500 0.8
30,000 PacifiCare Health Systems
(Class B) 1,012,500 2,085,000 0.6
44,800 United HealthCare Corp. 737,136 1,926,400 0.5
30,000 US HealthCare Inc. 1,217,025 1,282,500 0.4
------------ ------------ ------
7,346,712 12,094,900 3.4
Chemicals 80,000 PPG Industries, Inc. 3,106,850 2,940,000 0.8
20,000 Rohm & Haas Co. 1,089,325 1,122,500 0.3
------------ ------------ ------
4,196,175 4,062,500 1.1
Computer Software 20,000 TGV Software Inc. 320,000 320,000 0.1
Electrical Equipment 50,000 Ultratech Stepper Inc. 973,150 2,237,500 0.6
Electronics/ 25,000 Intel Corp. 751,250 1,990,625 0.6
Components 15,000 Motorola, Inc. 751,575 862,500 0.2
20,000 Texas Instruments Inc. 1,297,950 1,575,000 0.4
------------ ------------ ------
2,800,775 4,428,125 1.2
<PAGE>
Energy Sources 20,000 Anadarko Petroleum, Inc. 724,326 877,500 0.2
30,000 Chevron Corp. l,323,615 1,425,000 0.4
70,000 Enron Oil & Gas Co. 1,110,128 1,461,250 0.4
------------ ------------ ------
3,158,069 3,763,750 1.0
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<CAPTION>
LATIN Shares Held/ Percent of
AMERICA Industries Face Amount Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Food & Household 85,000 Performance Food Group Co. $ 1,323,721 $ 1,338,750 0.4%
States Products
(concluded)
Forest Products/ 25,000 Georgia-Pacific Corp. 1,820,250 1,871,875 0.5
Paper & Packaging
Industrial--Other 52,500 Johnson Controls, Inc. 2,141,876 2,611,875 0.7
67,500 Varity Corp. 2,071,277 2,463,750 0.7
------------ ------------ ------
4,213,153 5,075,625 1.4
Insurance 170,000 AFLAC, Inc. 4,370,715 6,417,500 1.8
40,000 Mercury General Corp. 1,118,100 1,240,000 0.3
------------ ------------ ------
5,488,815 7,657,500 2.1
Leisure & 80,000 McDonald's Corp. 1,931,150 2,660,000 0.7
Tourism 125,000 Mirage Resorts, Inc. 1,927,525 2,984,375 0.8
50,000 Walt Disney Co. 1,653,250 2,668,750 0.7
------------ ------------ ------
5,511,925 8,313,125 2.2
Merchandising 50,000 The Home Depot, Inc. 1,259,675 2,243,750 0.6
100,000 Home Shopping Network, Inc. 1,322,973 887,500 0.2
37,500 Sports & Recreation Inc. 972,500 764,063 0.2
30,000 Toys 'R' Us, Inc. 750,858 836,250 0.2
40,000 Wal-Mart Stores, Inc. 658,900 950,000 0.3
------------ ------------ ------
4,964,906 5,681,563 1.5
Metals--Non-Ferrous 40,000 Phelps Dodge Corp. 2,297,400 2,180,000 0.6
Multi-Industry 40,000 Tenneco Inc. 2,032,438 1,820,000 0.5
<PAGE>
Oil-Field 30,000 Schlumberger Ltd. 1,752,332 1,706,250 0.5
Equipment
Pharmaceuticals 40,000 ALZA Corp. 716,774 910,000 0.3
US$ 1,500,000 ICN Pharmaceuticals, Inc.,
8.50% due 11/15/1999 1,500,000 1,305,000 0.4
36,900 Merck & Co. 1,331,389 1,563,637 0.4
------------ ------------ ------
3,548,163 3,778,637 1.1
Railroads 30,000 CSX Corp. 1,993,665 2,332,500 0.7
20,000 Consolidated Rail Corp. 931,200 1,105,000 0.3
------------ ------------ ------
2,924,865 3,437,500 1.0
Recreation US$ 1,500,000 Alliance Gaming, Inc., 7.50%
due 9/15/2003 1,500,000 1,080,000 0.3
Telecommunications 105,000 Airtouch Communications, Inc. 2,420,203 2,861,250 0.8
Total Investments in the
United States 78,912,447 97,653,363 27.0
Total Investments in North
America 82,082,210 101,636,488 28.1
PACIFIC
BASIN
Australia Banking 200,000 ANZ Banking Group 746,255 702,100 0.2
109,074 National Australia Bank,
Ltd. 680,591 878,427 0.2
------------ ------------ ------
1,426,846 1,580,527 0.4
Broadcasting & 100,000 News Corp., Ltd. (Ordinary) 526,828 445,450 0.1
Publishing
Industrial--Other 240,000 Pacific BBA Ltd. 643,188 424,800 0.1
Metals 1,000,000 MIM Holdings, Ltd. 1,985,497 1,534,000 0.4
300,000 Western Mining Corp. 1,727,089 1,608,487 0.4
------------ ------------ ------
3,712,586 3,142,487 0.8
Real Estate 102,371 Lend Lease Corp. 1,295,017 1,281,966 0.4
Total Investments in
Australia 7,604,465 6,875,230 1.8
<PAGE>
Hong Kong Broadcasting & 380,000 Television Broadcast, Ltd. 1,477,469 1,430,345 0.4
Publishing
Multi-Industry 1,300,000 First Pacific Co., Ltd. 915,272 840,771 0.2
500,000 Swire Pacific 'A' Ltd. 2,453,484 3,508,602 1.0
------------ ------------ ------
3,368,756 4,349,373 1.2
Real Estate 600,000 Sun Hung Kai Properties, Ltd. 2,889,008 4,035,700 1.1
Telecommunications 600,000 Hong Kong Telecommunications
Ltd. 1,236,727 1,078,774 0.3
Utilities 800,000 China Light & Power Co., Ltd. 3,660,894 3,901,177 1.1
Total Investments in
Hong Kong 12,632,854 14,795,369 4.1
Indonesia Automobiles 500,000 Astra International Inc. 1,011,781 846,119 0.2
Telecommunications 15,000 P.T. Indonesian Satellite
Corp. (ADR)* 475,787 534,375 0.1
Textiles 495,000 Indorama Synthetics (Foreign) 975,477 1,250,903 0.3
Total Investments in Indonesia 2,463,045 2,631,397 0.6
Japan Appliances 200,000 Matsushita Electric
Industrial Co. 2,837,637 2,900,052 0.8
Automobiles 40,000 Honda Motor Co., Ltd. 734,883 604,868 0.2
150,000 Suzuki Motor Corp. 1,426,068 1,413,775 0.4
100,000 Toyota Motor Corp. 1,524,908 1,802,175 0.5
------------ ------------ ------
3,685,859 3,820,818 1.1
Banking 200,000 The Asahi Bank, Ltd. 2,108,622 2,340,756 0.7
120,000 The Bank of Tokyo, Ltd. 1,610,483 1,764,889 0.5
60,000 The Mitsubishi Bank, Ltd. 1,633,778 1,317,452 0.4
------------ ------------ ------
5,352,883 5,423,097 1.6
Broadcasting & 300,000 Tokyo Broadcasting System 3,736,661 4,070,430 1.1
Publishing
Chemicals 300,000 Asahi Chemical Industry 2,135,530 1,985,500 0.6
300,000 Sumitomo Chemical Co. 1,570,285 1,382,703 0.4
------------ ------------ ------
3,705,815 3,368,203 1.0
<PAGE>
Construction & 200,000 Shimizu Corp. 1,920,325 1,988,607 0.6
Housing 80,000 Taisei Prefab Construction
Co. 1,245,238 796,271 0.2
------------ ------------ ------
3,165,563 2,784,878 0.8
Electrical 270,000 Sumitomo Electric Industry,
Equipment Ltd. 2,968,251 3,076,126 0.9
Electronics 180,000 Casio Computer Co. 2,226,263 1,957,535 0.5
200,000 Hitachi Ltd. 2,079,745 1,750,388 0.5
29,000 Keyence Corp. 2,038,471 2,781,357 0.8
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<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 85,000 Murata Manufacturing Co., Ltd. $ 2,448,383 $ 2,808,389 0.8%
(concluded)(concluded) 100,000 Omron Corp. 1,791,778 1,563,956 0.4
300,000 Sanyo Electric Co., Ltd. 1,636,339 1,562,921 0.4
200,000 Sharp Corp. 3,027,869 2,858,622 0.8
35,000 Uniden Corp. 1,184,198 685,137 0.2
------------ ------------ ------
16,433,046 15,968,305 4.4
Financial 200,000 Daiwa Securities Co., Ltd. 2,519,694 2,237,183 0.6
Services 200,000 Mitsubishi Trust & Banking Corp. 2,659,557 2,837,908 0.8
150,000 Yamaichi Securities Company Ltd. 1,439,098 989,643 0.3
------------ ------------ ------
6,618,349 6,064,734 1.7
Industrial 47,000 Futaba Industrial Co. 784,379 851,890 0.2
Components 30,000 Mabuchi Motor Co. 1,811,300 1,870,533 0.5
------------ ------------ ------
2,595,679 2,722,423 0.7
Insurance 200,000 Tokio Marine & Fire Insurance
Co., Ltd. 2,573,815 2,092,180 0.6
Leasing 100,000 Daiwa Kosho Lease Co., Ltd. 1,048,185 902,123 0.3
Machinery & 200,000 Makino Milling Machine 1,422,848 1,491,455 0.4
Engineering 120,000 Okuma Corp. 1,171,317 914,759 0.3
------------ ------------ ------
2,594,165 2,406,214 0.7
<PAGE>
Machinery & Equipment 300,000 Mitsubishi Heavy Industries Ltd. 2,198,026 1,895,391 0.5
Merchandising 35,000 Aoyama Trading Co. 2,287,334 601,761 0.2
60,000 Ito-Yokado Co., Ltd. 2,604,246 2,734,335 0.8
120,000 Marui Co., Ltd. 2,190,949 1,715,173 0.5
------------ ------------ ------
7,082,529 5,051,269 1.5
Metals 1,000,000 NKK Corp. 2,741,551 2,578,975 0.7
500,000 Sumitomo Metal Industries
Co., Ltd. 1,679,618 1,434,490 0.4
------------ ------------ ------
4,421,169 4,013,465 1.1
Real Estate 200,000 Mitsui Fudosan 2,482,763 2,048,679 0.6
Recreation 65,000 Sony Music Entertainment
(Japan) Inc. 2,980,367 2,948,731 0.8
Telecommunications-- 5,000 SDK Engineering Co., Ltd. 61,696 56,447 0.0
Engineering
Textiles 200,000 Toray Industries, Inc. 1,520,350 1,255,308 0.4
Utilities-- 250 Nippon Telephone & Telegraph
Telecommunications Corp.(Ordinary) 2,152,184 1,786,639 0.5
Wholesale & 200,000 Mitsui & Co. 1,346,038 1,387,882 0.4
International Trade
Total Investments in Japan 81,561,030 76,043,394 21.5
Malaysia Banking 583,333 Commerce Asset-Holding BHD 1,276,855 2,330,864 0.6
Telecommunications 400,000 Technology Resources Industries
BHD 1,306,915 1,363,262 0.4
400,000 Telekom Malaysia BHD 1,837,601 2,804,873 0.8
------------ ------------ ------
3,144,516 4,168,135 1.2
Total Investments in Malaysia 4,421,371 6,498,999 1.8
New Telecommunications 400,000 Telecom Corp. of New Zealand
Zealand Ltd. (Class C) (ADR)* 1,278,315 1,385,004 0.4
Total Investments in New Zealand 1,278,315 1,385,004 0.4
<PAGE>
Singapore Air Transport 100,000 Singapore Airlines, Ltd. 383,769 1,000,690 0.3
Banking 100,000 Overseas Chinese Banking Corp. 965,728 986,888 0.3
Multi-Industry 120,000 Keppel Corp. Ltd. 851,434 960,663 0.3
Real Estate 450,000 Straits Steamship Land 1,128,219 1,391,304 0.4
Telecommuni- 400,000 Singapore Telecommunications
cations Ltd. 907,320 783,989 0.2
Total Investments in Singapore 4,236,470 5,123,534 1.5
South Banking 91,875 Hanil Bank 1,273,823 1,131,414 0.3
Korea
Building Materials 2,827 Hankuk Glass Industry Company
Ltd. 56,567 33,924 0.0
Construction & 26,790 Hyundai Engineering and
Housing Construction Co. 539,284 1,235,334 0.3
Electronics 22,000 LG Electronics Co. 1,005,834 763,715 0.2
Machinery & 16,299 Samsung Heavy Industry 795,588 514,184 0.1
Engineering 16,299 Samsung Heavy Industry
(Rights)(b) 0 0 0.0
------------ ------------ ------
795,588 514,184 0.1
Steel 20,000 Pohang Iron & Steel Co.,
Ltd. (ADR)* 433,700 510,000 0.1
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,349,246 0.4
Total Investments in
South Korea 5,201,911 5,537,817 1.4
Taiwan Electrical US$ 1,000,000 Teco Electric & Machinery
Equipment Co., 2.75% due 4/15/2004 1,000,000 840,000 0.2
Total Investments in Taiwan 1,000,000 840,000 0.2
Thailand Building Materials 20,000 Siam Cement Group 638,270 1,211,392 0.3
Electrical 80,000 United Communication Industry 813,026 1,142,399 0.3
Equipment
<PAGE>
Telecommunications 80,000 Advanced Information Service 885,868 1,052,547 0.3
48,500 Jasmine International Ltd. 670,900 789,852 0.2
------------ ------------ ------
1,556,768 1,842,399 0.5
Total Investments in Thailand 3,008,064 4,196,190 1.1
Total Investments in the
Pacific Basin 123,407,525 123,926,934 34.4
SOUTHEAST
ASIA
India Electrical US$ 325,000 Sterlite Industry, 3.50%
Equipment due 6/30/1999 325,000 274,625 0.1
Textiles 40,000 Indian Rayon & Industries
(GDR)** 844,207 540,000 0.2
Total Investments in India 1,169,207 814,625 0.3
Total Investments in
Southeast Asia 1,169,207 814,625 0.3
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<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 $ 1,067,308 0.3%
Total Investments in Austria 997,161 1,067,308 0.3
Belgium Automobiles 2,500 D'ieteren N.V. 214,059 162,953 0.0
Broadcasting & 1,900 Compagnie Luxembourgeoise
Publishing Pour L'Audio--Visuel et
La Finance (AUDIOFINA) 1,045,105 947,788 0.3
Total Investments in Belgium 1,259,164 1,110,741 0.3
<PAGE>
Denmark Telecommunications 15,000 Tele Danmark A/S 'B' 710,499 764,358 0.2
Total Investments in Denmark 710,499 764,358 0.2
Finland Forest Products 20,000 Kymmene OY Corp. 517,588 577,675 0.2
Telecommunications 2,360 Benefon OY 800,821 681,657 0.2
16,600 Nokia OY AB (Preferred) 1,564,267 2,489,557 0.7
------------ ------------ ------
2,365,088 3,171,214 0.9
Total Investments in Finland 2,882,676 3,748,889 1.1
France Appliances 25,000 Moulinex S.A. 536,491 501,343 0.1
Broadcasting & 2,500 NRJ S.A. 301,623 189,829 0.1
Publishing
Building Materials 5,000 Imetal Co. 502,687 493,556 0.1
Business & Public 17,140 Compagnie Generale des Eaux 1,574,432 1,585,121 0.4
Services
Construction & 13,350 Bouygues S.A. 1,439,564 1,374,976 0.4
Housing
Energy 22,000 Societe Nationale Elf Aquitane 1,650,499 1,577,548 0.4
Financial Services 20,250 Credit Local de France 1,472,368 1,608,582 0.4
Industrial--Other 50,000 Michelin Tire Corp. 2,045,115 1,996,612 0.6
Total Investments in France 9,522,779 9,327,567 2.5
Germany Banking 2,000 Deutsche Bank AG 651,283 982,271 0.3
Building Materials 6,000 Friedrich Grohe (Preferred) 1,478,231 2,006,297 0.6
Chemicals 15,000 BASF AG (Ordinary) 3,106,626 3,285,646 0.9
Health & Personal Care 3,000 Wella AG (Preferred) 1,257,499 2,059,689 0.6
Machinery & Equipment 4,000 Jungheinrich AG (Preferred) 930,503 922,719 0.3
Multi-Industry 5,000 Vereinigte Elektrizitaets &
Bergwerks AG (Veba) 1,678,120 1,793,415 0.5
Total Investments in Germany 9,102,262 11,050,037 3.2
<PAGE>
Italy Merchandising 125,000 La Rinascente RISP 285,348 335,860 0.1
Telecommunications 300,000 Telecom Italia SPA (Ordinary) 280,800 724,107 0.2
500,000 Telecom Italia SPA (Savings) 978,610 971,180 0.3
------------ ------------ ------
1,259,410 1,695,287 0.5
Total Investments in Italy 1,544,758 2,031,147 0.6
Nether- Beverages & Tobacco 15,000 Heineken N.V. 1,651,172 2,346,553 0.7
lands
Broadcasting & 20,000 Ver Ner Uitgevers 2,137,335 2,222,087 0.6
Publishing
Chemicals 11,600 European Vinyls Corp.
International N.V. 512,097 514,533 0.1
Construction & 90,000 IHC Caland N.V. 1,977,215 2,196,461 0.6
Housing
Electronics 57,000 Philips Industries Inc. 1,790,368 1,884,930 0.5
Metal Fabricating 25,000 Koninklijke Nederlandsche
Hoogovens Staalfabrieken N.V. 1,136,219 1,145,516 0.3
Shipping 30,000 Koninklijke Van Ommeren NV 911,131 834,655 0.2
Wholesale & 28,500 Hagemeyer N.V. 2,298,541 2,423,978 0.7
International Trade
Total Investments in the
Netherlands 12,414,078 13,568,713 3.7
Norway Automobiles 50,000 Sensonor A/S 340,489 371,207 0.1
Energy Equipment 9,500 Petroleum Geo-Services A/S 209,860 211,588 0.1
& Services
Multi-Industry 75,000 Kverneland Gruppen A/S 986,641 1,067,219 0.3
Total Investments in Norway 1,536,990 1,650,014 0.5
Portugal Beverages & 20,000 Sumolis Companhia Industrial
Tobacco de Frutas e Bebidas S.A. 221,229 209,373 0.1
Total Investments in Portugal 221,229 209,373 0.1
<PAGE>
Spain Banking 10,000 Banco Popular Espanol S.A. 1,289,096 1,272,813 0.4
Building Materials 19,000 Cristaleria Espanol S.A. 1,200,734 955,432 0.3
Energy 50,000 Repsol S.A. 1,662,606 1,421,634 0.4
Forest Products 56,500 Empresa Nacional de Celulosas
S.A. 1,134,583 1,524,575 0.4
Telecommunications 100,000 Telefonica de Espana Co. 1,347,830 1,249,315 0.3
Utilities 43,060 Empresa Nacional de
Electricidad S.A. 1,531,115 1,878,626 0.5
Total Investments in Spain 8,165,964 8,302,395 2.3
Sweden Automobiles 16,000 Autoliv AB 523,591 589,335 0.2
130,000 Catena AB 1,106,855 1,143,882 0.3
72,500 Volvo AB 'B' 1,448,465 1,453,897 0.4
------------ ------------ ------
3,078,911 3,187,114 0.9
Forest Products/Paper 41,000 Mo Och Domsjoe AB 'B' Free 1,919,415 2,044,323 0.6
Packaging 466,666 Rottneros Bruks AB Free 551,842 795,783 0.2
------------ ------------ ------
2,471,257 2,840,106 0.8
Health & Personal 73,400 Astra AB 'B' Fria 1,359,352 1,817,402 0.5
Care
Metals 90,000 Trelleborg AB 'B' 1,330,902 1,246,197 0.3
Multi-Industry 54,000 Kinnevik AB 'B' Free 1,821,410 1,760,637 0.5
Shipping 37,000 ICB Shipping AB 'B' Free 350,695 330,614 0.1
Total Investments in Sweden 10,412,527 11,182,070 3.1
</TABLE>
<PAGE>
<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>
Switzer- Building Materials 1,417 Holderbank Financiere
land Glaris Ltd. $ 1,035,898 $ 1,048,189 0.3%
Electrical Equipment 2,000 BBC Brown Boveri & Co. 1,542,228 1,739,482 0.5
Food & Household 1,100 Nestle AG 439,670 1,060,648 0.3
Products
Health & Personal 931 Roche Holding AG 4,493,036 5,146,326 1.4
Care
Insurance 1,180 Zurich Insurance Co. 1,169,946 1,135,880 0.3
Shipping 4,000 Danzas Holding AG 954,580 694,501 0.2
Total Investments in
Switzerland 9,635,358 10,825,026 3.0
United Banking 300,000 Bank of Scotland 916,166 962,829 0.3
Kingdom 260,000 National Westminster
Bank PLC 1,609,025 1,977,199 0.6
------------ ------------ ------
2,525,191 2,940,028 0.9
Broadcast--Media 334,800 British Sky Broadcasting
Group PLC 1,339,629 1,339,838 0.4
Building Materials & 500,000 Spring Ram Corp. PLC 1,450,088 300,390 0.1
Components
Business & Public 29,000 Bell Cablemedia PLC (ADR)* 493,000 587,250 0.2
Services 125,000 Carlton Communications PLC
(Ordinary) 1,292,970 1,717,361 0.5
320,000 Chubb Security PLC 1,625,989 1,497,523 0.4
------------ ------------ ------
3,411,959 3,802,134 1.1
Electronics 800,000 Astec (BSR) 1,105,101 1,011,840 0.3
Energy Sources 450,000 British Petroleum Co. PLC 2,236,817 2,817,342 0.8
<PAGE>
Food & Household 208,648 Cadbury Schweppes PLC 1,796,510 1,397,010 0.4
Products 28,571 Cadbury Schweppes PLC
(Partially Paid) 45,267 83,114 0.0
------------ ------------ ------
1,841,777 1,480,124 0.4
Health & Personal 200,000 Goldsborough Healthcare PLC 506,362 467,976 0.1
Care
Merchandising 570,000 House of Fraser PLC 1,851,700 1,333,732 0.4
350,000 Next PLC 1,098,607 1,449,777 0.4
------------ ------------ ------
2,950,307 2,783,509 0.8
Multi-Industry 450,000 BTR PLC 2,526,472 2,230,396 0.6
151,181 Siebe PLC 1,043,644 1,254,840 0.3
------------ ------------ ------
3,570,116 3,485,236 0.9
Total Investments in the
United Kingdom 20,937,347 20,428,417 5.8
Total Investments in
Western Europe 89,342,792 95,266,055 26.7
SHORT-TERM
SECURITIES Face Amount
United Commercial US$ 13,276,000 Associates Corp. of North America,
States Paper*** 6.05% due 3/01/1995 13,276,000 13,276,000 3.7
US Government 10,000,000 Federal National Mortgage
& Agency Association, 5.82%
Obligations*** due 3/15/1995 9,977,367 9,977,367 2.8
Total Investments in
Short-Term Securities 23,253,367 23,253,367 6.5
Total Investments $338,827,222 359,376,291 100.1
============
Liabilities in Excess of Other Assets (272,023) (0.1)
------------ ------
Net Assets $359,104,268 100.0%
============ ======
<PAGE>
Net Asset Value: Class A--Based on net assets of $310,694,255
and 26,234,312 shares outstanding $ 11.84
============
Class B--Based on net assets of $45,216,559
and 3,926,913 shares outstanding $ 11.51
============
Class C--Based on net assets of $254,749
and 22,122 shares outstanding $ 11.52
============
Class D--Based on net assets of $2,938,705
and 248,249 shares outstanding $ 11.84
============
<FN>
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***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.
(a)The rights may be exercised until 9/29/1995.
(b)The rights may be exercised until 3/21/1995.
</TABLE>
PORTFOLIO CHANGES
For the Quarter Ended February 28, 1995
Additions
Alcan Aluminium Ltd.
British Sky Broadcasting Group PLC
Cadbury Schweppes PLC (Partially Paid)
Daiwa Kosho Lease Co., Ltd.
Empresas ICA Sociedad Controladora,
S.A. de C.V., 5.00% due 3/15/2004
Goldstar Co.
Hankuk Glass Industry Company Ltd.
*Medpartners Inc.
Omron Corp.
Petroleum Geo-Services A/S
Pohang Iron & Steel Co., Ltd.
Rohm & Haas Co.
SDK Engineering Co., Ltd.
Samsung Heavy Industry (Rights)
Sanyo Electric Co., Ltd.
Sensonor A/S
Suzuki Motor Corp.
TGV Software Inc.
*Transactions Systems Architect
<PAGE>
Deletions
Aichi Corp.
Amcol Holdings Ltd.
Arnoldo Mondadori Editore
China Strategic Investment Ltd.
Clear Channel Communications Inc.
Daimei Telecom Engineering
Ekran BHD
Ekran BHD (New) 'A'
Kamigumi Co., Ltd.
*Medpartners Inc.
News Corp. Ltd. (Preferred)
Rinnai Corp.
SKF AB 'B' Free
Samsung Aerospace Industries (New)
Samsung Heavy Industry (New)
Schibsted Gruppen A/S
Sierra Health Services Inc.
Sony Corp.
Tenaga Nasional BHD
*Transactions Systems Architect
Unitor Ships Service
Victor Co. of Japan, Ltd.
[FN]
*Added and deleted in the same quarter.
