MERRILL LYNCH
GLOBAL HOLDINGS
FUND LOGO
STRATEGIC
Performance
Annual Report
November 30, 1994
<PAGE>
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
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 Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
Important Tax
Information
(unaudited)
<TABLE>
The following information summarizes all per share distributions
paid by Merrill Lynch Global Holdings (the "Fund") during the
year ended November 30, 1994:
<CAPTION>
Qualifying Domestic Foreign
Domestic Non-Qualifying Foreign Total Taxes Long-Term
Record Payable Ordinary Ordinary Source Ordinary Paid or Capital
Date Date Income Income Income Income Withheld Gains
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A Shares 12/14/93 12/22/93 $0.058383 $0.243307 $0.069527 $0.371217 $0.017103 $.442875
Class B Shares 12/14/93 12/22/93 $0.034478 $0.143684 $0.041059 $0.219221 None $.442875
The qualifying domestic ordinary income qualifies for the dividends
received deduction for corporations.
All of the foreign taxes paid or withheld represent taxes incurred by
the Fund on dividends received by the Fund from foreign sources.
Foreign taxes paid or withheld should be included in taxable income
with an offsetting deduction from gross income or as a credit for
taxes paid to foreign governments. You should consult your tax adviser
regarding the appropriate treatment of foreign taxes paid.
Please retain this information for your records.
</TABLE>
DEAR SHAREHOLDER
Fiscal Year in Review
Merrill Lynch Global Holdings maintained a fairly cautious
investment strategy during the fiscal year ended November 30,
1994, by holding cash balances at 7%--14% of net assets for most
of the period. Economic statistics released during the year
provided evidence of accelerated economic activity worldwide.
Those countries where economic recoveries have been under-
way for some time, such as the United States, Australia and
the United Kingdom, are seeing growth rates accelerate.
Meanwhile, economic growth is becoming increasingly solid and
strengthening in many countries that are beginning their recovery
phases, such as Germany and Japan. In addition to increased
economic growth, an increase in industrial commodity prices
heightened investors' inflationary fears. These inflationary
concerns, along with currency instability, pressured the bond
markets globally and hampered stock market performance worldwide.
<PAGE>
Portfolio performance during the fiscal year was enhanced by
changes in sector allocations. Based on the trend toward higher
interest rates worldwide, we reduced our exposure to interest
rate-sensitive sectors, such as utilities and banks. We also
significantly limited our exposure to many consumer-oriented
stocks where both competitive pressures and consumers' focus on
"value-for-money" restricted pricing flexibility and dampened
the earnings outlook for many companies. Interest rate-sensitive
and consumer-oriented stocks generally underperformed the broad
stock market averages over the period. We increasingly focused
our investments on sectors that would directly benefit from an
improving economic environment. These included the technology
sector as well as some cyclical commodity-oriented sectors such
as chemicals, papers and steels. In these sectors, we believed
there was strong potential for positive earnings surprises as
increasing demand and better pricing combined with significantly
improved corporate cost structures. In general, these sectors
outperformed the markets during the year.
Our overweighting in the developing/emerging markets,
particularly in Asia, contributed negatively to performance
during the fiscal year. On average, we maintained about 13% of
net assets in Asia (ex-Japan) and about 6% in Latin America during
the year. These stock markets started to sharply underperform after
the US Federal Reserve Board began increasing interest rates in
February. Many of these emerging economies are perceived as being
highly exposed to developments in the United States through their
US dollar-linked exchange rates. Also, many investors are concerned
that these stock markets would be vulnerable if internationally
oriented equity mutual funds were to experience cash outflows. We
maintained our overweighted position in the emerging markets
because we are bullish on their long-term economic growth
prospects and we believe the outlook for corporate profits
remains robust.
<PAGE>
Asian Investment Activities
The Japanese stock market continued its weak performance during
the November quarter, falling 7.5% as measured by the Nikkei 225
stock index in local currency terms. Although the Japanese
economy is recovering and corporate earnings are turning around,
the stock market has remained under selling pressure. Individuals
have been net sellers, confronted with margin calls as recent
issues sank to new lows. Meanwhile, local institutions have been
selling equities to address their balance sheet problems. Foreign
investors, sensing this malaise, added to the selling pressure by
taking profits. Finally, the decline in the US stock market
further dampened already weak sentiment.
As discussed in our last report to shareholders, the near-term outlook
for Japanese equities remains uncertain. However, we maintain a
positive investment outlook for the medium to long term, given that
fundamentals continue to improve. While investors remain
unenthusiastic, the Japanese economy is finally emerging from
a nearly three-year recession. Improvements in machinery orders,
passenger car sales, crude steel production, commercial
advertising, inventory shipment ratios, and money supply growth,
all point to a brighter outlook. The interim corporate earnings
results announced thus far have surprised on the upside,
especially those released from the manufacturing sector. Despite
weaker reported revenues, profitability is improving through
cost savings and restructuring.
Our investment focus continued to be on the sectors that are
sensitive to the global economy, including basic materials and
machinery. During the November quarter, we increased our exposure
to the steel, chemical and textile sectors which are enjoying
rising prices for their exports within Asia because of brisk
demand. Conversely, we further reduced our exposure to the housing
and housing-related sectors which will likely underperform as
the Japanese economy enters a recovery phase. Japanese electrical
equipment manufacturers remain a favored sector, and we increased
our investment in Murata Manufacturing Co., Ltd. (Japan). At
the end of November, our weighting in Japan had remained
unchanged and underweighted at 24.2% versus 27.9% of the market
capitalization of the Morgan Stanley Capital International World
Index of common stocks.
<PAGE>
Smaller Asian Markets
Investment Activities
Smaller Asian stock markets, with the exception of Korea,
corrected sharply during the November quarter as the effects of
US interest rate increases and a correction in the US equity
market crossed over into these countries. Hong Kong, which tends
to be more sensitive to rising US interest rates than other Asian
markets, fell 14.7%. The other three major Pacific Rim markets,
Singapore, Malaysia and Australia, fell in local currency terms
by 3.1%, 10.4% and 10.9%, respectively. Currently, equity markets
around the region are suffering from fears of further US interest
rate hikes. Investors are concerned that if US interest rates rise,
there may be an outflow from US mutual funds that invest
internationally, particularly in the Asian stock markets. However,
some studies suggest that if rising US interest rates slow US
economic growth faster than expected, investors might focus on
Asia, given its strong economic and earnings growth outlook. As
stated earlier, we remain positive on the long-term growth
prospects for the region. We believe that crisis often creates
excellent long-term buying opportunities, and that Asian stock
markets will outperform in the long run.
Given our long-term positive outlook for investing in the smaller
Asian markets, we maintained our overweighted position at about
13% of net assets, essentially unchanged from the end of the last
quarter. However, we did make some portfolio changes within the
region during the period. We invested in the Taiwan stock market
by purchasing Euro-convertible bonds of Teco Electric & Machinery
Company (TECO), Taiwan's largest electric motor manufacturer with
more than a 50% market share of local motor sales. TECO is
aggressively expanding its motor operations, aiming to become one
of the world's top five motor producers. With the company's strong
management and the demand for its products rising at 20% per annum,
TECO's future looks bright. Taiwan's economy continues to perform
well because of recovering domestic demand and stronger exports,
which should bode well for its stock market. Conversely, we trimmed
our Hong Kong exposure by taking profits in some of our larger
holdings such as Swire Pacific Limited and China Light & Power
Company. In the short term, the Hong Kong stock market's progress
is likely to be impeded by prospects of higher interest rates and
worries over China's economic direction. We may add to the Fund's
Hong Kong investments once the stock market corrects.
European Investment Activities
The European equity markets were dominated by the continued slide
in their bond markets over the last few months. The 4% decline,
in local currency terms, of the Morgan Stanley Capital International
Europe Index in the November period was driven by a similar fall
in bond prices, caused by investors embracing the view that the
German Bundesbank would stop easing monetary policy.
<PAGE>
While stock markets were weak, first-half 1994 profits reports
were encouraging. Many companies reported large profit increases,
the results of years of cost reductions, lower financing costs and,
of course, increased worldwide economic activity. This has been
especially true for exporters, for commodity producers (such as
paper and pulp and cement), and for infrastructure builders
and providers. We continued to focus our investments in these
areas, and increased our weighting in Europe to about 23% of net
assets compared to around 20% at the end of the last quarter.
North American Investment Activities
In the face of rising interest rates and turbulent financial
markets in the United States, we initiated several changes in
order to take a more defensive investment posture during the
quarter. We realized gains in two bank holding companies, Bank of
Boston Co. and Baybanks Inc. Both companies faced the increased
possibility of slower earnings growth as a result of narrower
spreads between deposit and longer-term debt yields, which should
cause net interest margins to decline for most US banks.
We invested in several pharmaceutical companies including ALZA
Corp., ICN Pharmaceuticals, Inc. convertible debt and Merck & Co.
The recent Congressional election results, which created a
Republican majority in both the US Senate and House of
Representatives, should restrain potential changes within the US
healthcare delivery system. Most proposed changes would have
increased pricing pressures and adversely affected many
pharmaceutical companies. We also invested in PPG Industries
Inc., a chemical company that is expected to benefit from
possible price increases in its products because of industry-wide
capacity constraints, and Mercury General Corp., an insurance
company, which is expected to benefit from better industry
conditions within its California market.
Investor confidence in the Latin American markets suffered a
severe setback in December when the Mexican government first
devalued the peso and then let it float freely against the US
dollar. Going forward, Mexico must ensure that the effects of
the devaluation are not eroded by inflation. Therefore, we believe
that a relatively tight monetary stance must be maintained. Thus
far, relatively few fiscal measures have been announced by the
Mexican government. In the portfolio, we maintained our
position in the Latin American markets at about 6% of net assets,
with Mexico at November 30, 1994 holding a 2.6% position. While
it may take some time for investors to regain confidence, we
remain positive on the longer-term growth prospects for the region.
<PAGE>
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 quarterly report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
January 10, 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.
* 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" and "Average Annual Total
Return" tables on pages 6 and 7. Data for all of the Fund's shares,
including Class C and Class D Shares, are presented in the "Recent
Performance Results" table.
<PAGE>
The "Recent Performance Results" table below 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
November 30, 1994 and for Class C and Class D Shares for the
period since inception through November 30, 1994. 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.
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
11/30/94 8/31/94++ 11/30/93 % Change % Change++
<S> <C> <C> <C> <C> <C>
ML Global Holdings Class A Shares* $12.82 $13.59 $13.07 +1.52% (1) -5.67%
ML Global Holdings Class B Shares* 12.50 13.29 12.74 +1.60 (1) -5.94
ML Global Holdings Class C Shares* 12.51 13.08 -- -- -4.36
ML Global Holdings Class D Shares* 12.81 13.39 -- -- -4.33
ML Global Holdings Class A Shares--Total Return* +4.39 (2) -5.67
ML Global Holdings Class B Shares--Total Return* +3.32 (3) -5.94
ML Global Holdings Class C Shares--Total Return* -- -4.36
ML Global Holdings Class D Shares--Total Return* -- -4.33
World Stock Index--Total Return** +9.16 -4.27
<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.
++Investment results shown for Class C and Class D Shares are since inception (10/21/94).
(1)Percent change includes reinvestment of $0.443 per share capital gains distributions.
(2)Percent change includes reinvestment of $0.371 per share income dividends and $0.443 per share
capital gains distributions.
(3)Percent change includes reinvestment of $0.219 per share income dividends and $0.443 per share
capital gains distributions.
</TABLE>
<PAGE>
PERFORMANCE DATA (concluded)
Total Return
Based on a
$10,000
Investment
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 1.
Average
Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/94 + 6.75% + 1.14%
Five Years Ended 9/30/94 + 7.71 + 6.56
Ten Years Ended 9/30/94 +13.57 +12.96
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/94 +5.63% +1.63%
Five Years Ended 9/30/94 +6.61 +6.61
Inception (10/21/88) through 9/30/94 +8.91 +8.91
[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>
<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--11/30/94 13.14 12.82 -- -- - 2.44
Total $9.344 Total $2.549
Cumulative total return as of 11/30/94: +257.20%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains distributions at
net asset value on the ex-dividend date, and do not include sales charge; results
would be lower if sales charge was included.
</TABLE>
<TABLE>
Performance
Summary--
Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/88--12/31/88 $11.29 $11.00 $0.388 $0.147 + 2.22%
1989 11.00 11.71 1.492 0.138 +22.33
1990 11.71 10.20 0.188 0.166 -10.18
1991 10.20 11.56 0.221 0.036 +16.02
1992 11.56 11.09 0.817 0.001 + 3.15
1993 11.09 12.94 0.443 0.219 +22.87
1/1/94--11/30/94 12.94 12.50 -- -- - 3.40
Total $3.549 Total $0.707
Cumulative total return as of 11/30/94: +59.55%**
<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>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Held/ Value Percent of
Industries Face Amount Investments Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
LATIN AMERICA
Argentina
Beverages & Tobacco 47,000 Buenos Aires Embotelladora S.A. (BAESA) (ADR)* $ 1,427,640 $ 1,821,250 0.5%
Energy 70,000 Yacimientos Petroliferos Fiscales S.A.
--Sponsored (ADR)* 1,458,700 1,583,750 0.4
Multi-Industry 187,500 Compania Naviera Perez Companc S.A.C.F.I.M.F.A. 1,047,194 910,012 0.2
Telecommunications 40,000 ++++Telecom Argentina Stet--France Telecom
S.A. (ADR)* 1,400,296 2,210,000 0.6
Utilities 30,000 Central Puerto (ADR)* 795,000 877,500 0.2
Total Investments in Argentina 6,128,830 7,402,512 1.9
Brazil
Telecommunications 20,957,793 Telecomunicacoes Brasileiras S.A.--Telebras PN
(Preferred) 670,658 1,004,486 0.3
Total Investments in Brazil 670,658 1,004,486 0.3
Chile
Chemicals 45,000 Sociedad Quimica y Minera de Chile S.A.
(B Shares) (ADR)* 1,158,750 1,260,000 0.3
Metals 35,000 Madeco S.A. (ADR)* 525,000 1,015,000 0.3
Multi-Industry 40,000 GT Chilean Growth Fund (ADR)* 1,365,000 1,260,000 0.3
Utilities 40,000 Enersis S.A. (ADR)* 779,762 1,195,000 0.3
Total Investments in Chile 3,828,512 4,730,000 1.2
<PAGE>
Mexico
Beverages & Tobacco 20,000 Coca-Cola Femsa S.A. (ADR)* 454,318 632,500 0.2
30,000 Empresa La Moderna, S.A. de C.V. (ADR)* 992,735 843,750 0.2
20,000 Panamerican Beverages, Inc. (Class A) (ADR)* 525,114 700,000 0.2
------------ ------------ ------
1,972,167 2,176,250 0.6
Broadcasting & 30,000 ++++Grupo Televisa, S.A. de C.V. (ADR)* 953,349 1,357,500 0.4
Publishing
Engineering & 72,000 Grupo Mexicano de Desarrollo S.A. (Class B) (ADR)* 1,184,535 1,332,000 0.4
Construction 5,335 Grupo Mexicano de Desarrollo S.A. (Class L) (ADR)* 85,973 110,702 0.0
------------ ------------ ------
1,270,508 1,442,702 0.4
Multi-Industry 150,000 Grupo Carso, S.A. de C.V. 1,320,769 1,688,727 0.4
Steel 67,400 Grupo Simec, S.A. de C.V. (ADR)* 946,876 1,550,200 0.4
Telecommunications 30,000 Telefonos de Mexico, S.A. de C.V. (ADR)* 1,109,350 1,590,000 0.4
Total Investments in Mexico 7,573,019 9,805,379 2.6
Venezuela
Steel 52,000 ++++Venezolana de Prerreducidos Caroni 'Venprecar'
C.A. (GDS)** 379,600 302,250 0.1
Total Investments in Venezuela 379,600 302,250 0.1
Total Investments in Latin America 18,580,619 23,244,627 6.1
NORTH AMERICA
Canada
Telecommunications 55,000 Newbridge Networks Corp. 855,730 1,849,375 0.5
50,000 Northern Telecom 1,474,875 1,600,000 0.4
------------ ------------ ------
2,330,605 3,449,375 0.9
Total Investments in Canada 2,330,605 3,449,375 0.9
<PAGE>
United States
Appliances 70,000 Corning Inc. 2,278,075 2,100,000 0.5
& Household 50,000 River Oaks Furniture Inc. 941,875 687,500 0.2
------------ ------------ ------
3,219,950 2,787,500 0.7
Automobiles 30,000 Ford Motor Co. (8.40% Conv. Pfd.) 1,500,000 2,643,750 0.7
50,000 General Motors Corp. 2,284,800 1,906,250 0.5
------------ ------------ ------
3,784,800 4,550,000 1.2
Banking 37,500 Mercantile Bancorp., Inc. 949,375 1,139,063 0.3
60,000 Midlantic National Bank 1,473,090 1,590,000 0.4
70,000 Signet Banking Corp. 2,632,262 2,091,250 0.5
70,600 UJB Financial Corp. 1,434,893 1,720,875 0.5
------------ ------------ ------
6,489,620 6,541,188 1.7
Broadcasting & 15,000 Clear Channel Communications Inc. 424,500 686,250 0.1
Publishing 100,000 Time Warner Inc. 2,832,156 3,375,000 0.9
54,000 ++Viacom Inc. (Class A) 1,629,189 2,153,250 0.6
26,000 ++Viacom Inc. (Class B) 993,241 1,001,000 0.3
80,000 ++Viacom Inc. (VCR) (Rights) (a) 104,325 120,000 0.0
------------ ------------ ------
5,983,411 7,335,500 1.9
Building Materials 30,000 Owens-Corning Fiberglass Corp. 1,266,112 870,000 0.2
Business & Public 36,000 Microsoft Corp. 1,503,000 2,259,000 0.6
Services 100,000 Molten Metal Technology, Inc. 1,920,613 1,875,000 0.5
60,000 Oracle Systems Corp. 956,437 2,475,000 0.6
30,000 ++PacifiCare Health Systems (Class B) 1,012,500 1,980,000 0.5
19,800 ++Sierra Health Services Inc. 315,444 608,850 0.2
44,800 United HealthCare Corp. 737,136 2,128,000 0.6
30,000 US HealthCare Inc. 1,217,025 1,335,000 0.3
------------ ------------ ------
7,662,155 12,660,850 3.3
Chemicals 60,000 PPG Industries, Inc. 2,376,100 2,160,000 0.6
Electrical Equipment 60,000 Ultratech Stepper Inc. 1,159,400 2,310,000 0.6
Electronics/Components 30,000 Intel Corp. 887,187 1,886,250 0.5
35,000 Motorola, Inc. 1,617,865 1,973,125 0.5
20,000 Texas Instruments Inc. 1,297,950 1,510,000 0.4
------------ ------------ ------
3,803,002 5,369,375 1.4
<PAGE>
Energy Sources 20,000 Anadarko Petroleum, Inc. 724,326 800,000 0.2
30,000 Chevron Corp. 1,323,615 1,308,750 0.4
70,000 Enron Oil & Gas Co. 1,110,128 1,268,750 0.3
------------ ------------ ------
3,158,069 3,377,500 0.9
Food & Household 85,000 Performance Food Group Co. 1,323,720 956,250 0.3
Products
Forest Products/ 25,000 Georgia-Pacific Corp. 1,820,250 1,787,500 0.5
Paper & Packaging
Industrial--Other 52,500 Johnson Controls, Inc. 2,141,875 2,546,250 0.7
67,500 Varity Corp. 2,071,277 2,514,375 0.6
------------ ------------ ------
4,213,152 5,060,625 1.3
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Held/ Value Percent of
Industries Face Amount Investments Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
NORTH AMERICA (concluded)
United States (concluded)
Insurance 170,000 AFLAC, Inc. $ 4,370,715 $ 5,758,750 1.5%
40,000 Mercury General Corp. 1,118,100 1,135,000 0.3
------------ ------------ ------
5,488,815 6,893,750 1.8
Leisure & Tourism 98,400 McDonald's Corp. 2,349,152 2,792,100 0.7
125,000 Mirage Resorts, Inc. 1,927,525 2,468,750 0.7
50,000 Walt Disney Co. 1,653,250 2,181,250 0.6
------------ ------------ ------
5,929,927 7,442,100 2.0
Merchandising 50,000 The Home Depot, Inc. 1,259,675 2,312,500 0.6
100,000 Home Shopping Network, Inc. 1,322,973 1,062,500 0.3
37,500 Sports & Recreation Inc. 972,500 853,125 0.2
30,000 ++Toys 'R' Us, Inc. 750,858 1,098,750 0.3
40,000 Wal-Mart Stores, Inc. 658,900 925,000 0.2
------------ ------------ ------
4,964,906 6,251,875 1.6
<PAGE>
Metals--Non-Ferrous 40,000 Phelps Dodge Corp. 2,297,400 2,290,000 0.6
Multi-Industry 40,000 Tenneco Inc. 2,032,438 1,555,000 0.4
Oil-Field Equipment 30,000 Schlumberger Ltd. 1,752,332 1,593,750 0.4
Pharmaceuticals 20,000 ++ALZA Corp. 356,200 385,000 0.1
US$1,500,000 ICN Pharmaceuticals, Inc., 8.50% due 11/15/1999 1,500,000 1,680,000 0.4
36,900 Merck & Co. 1,331,389 1,374,525 0.4
------------ ------------ ------
3,187,589 3,439,525 0.9
Railroads 30,000 CSX Corp. 1,993,665 2,085,000 0.5
20,000 Consolidated Rail Corp. 931,200 1,040,000 0.3
------------ ------------ ------
2,924,865 3,125,000 0.8
Recreation US$1,500,000 United Gaming, Inc., 7.50% due 9/15/2003 1,500,000 1,050,000 0.3
Telecommunications 105,000 Airtouch Communications, Inc. 2,420,203 2,848,125 0.7
Total Investments in the United States 78,758,216 92,255,413 24.1
Total Investments in North America 81,088,821 95,704,788 25.0
PACIFIC BASIN
Australia
Banking 200,000 ANZ Banking Group 746,255 608,653 0.2
105,076 National Australia Bank, Ltd. 647,467 847,884 0.2
------------ ------------ ------
1,393,722 1,456,537 0.4
Broadcasting 150,272 News Corp., Ltd. (Ordinary) 764,065 600,517 0.1
& Publishing 75,136 News Corp., Ltd. (Preferred) 328,393 260,994 0.1
------------ ------------ ------
1,092,458 861,511 0.2
Industrial--Other 400,000 Pacific BBA Ltd. 1,058,558 829,980 0.2
Metals 1,000,000 MIM Holdings, Ltd. 1,985,497 1,875,140 0.5
251,600 Western Mining Corp. 1,449,361 1,430,824 0.4
------------ ------------ ------
3,434,858 3,305,964 0.9
Real Estate 102,371 Lend Lease Corp. 1,295,017 1,250,886 0.3
Total Investments in Australia 8,274,613 7,704,878 2.0
<PAGE>
Hong Kong
Broadcasting 380,000 Television Broadcast, Ltd. 1,477,469 1,523,223 0.4
& Publishing
Multi-Industry 1,300,000 First Pacific Co., Ltd. 915,272 899,323 0.2
500,000 Swire Pacific 'A' Ltd. 2,453,484 3,329,626 0.9
------------ ------------ ------
3,368,756 4,228,949 1.1
Real Estate 500,000 China Strategic Investment Ltd. 409,452 227,901 0.1
600,000 Sun Hung Kai Properties, Ltd. 2,889,008 3,855,902 1.0
------------ ------------ ------
3,298,460 4,083,803 1.1
Telecommunications 600,000 Hong Kong Telecommunications Ltd. 1,236,727 1,187,028 0.3
Utilities 800,000 China Light & Power Co., Ltd. 3,660,894 3,444,709 0.9
Total Investments in Hong Kong 13,042,306 14,467,712 3.8
Indonesia
Automobiles 500,000 Astra International Inc. 1,011,781 998,462 0.3
Telecommunications 5,050 P.T. Indonesia Satellite (ADR)* 161,853 191,900 0.1
Textiles 330,000 Indorama Synthetics (Foreign) 975,477 1,310,396 0.3
Total Investments in Indonesia 2,149,111 2,500,758 0.7
Japan
Appliances 200,000 Matsushita Electric Industrial Co. 2,837,637 3,093,409 0.8
53,700 Rinnai Corp. 901,260 1,183,441 0.3
20,000 Sony Corp. 1,189,833 1,061,464 0.3
100,000 Victor Co. of Japan, Ltd. 1,414,421 1,364,739 0.4
------------ ------------ ------
6,343,151 6,703,053 1.8
Automobiles 70,000 Honda Motor Co., Ltd. 1,279,114 1,174,686 0.3
200,000 Toyota Motor Corp. 2,884,634 4,266,074 1.1
------------ ------------ ------
4,163,748 5,440,760 1.4
Banking 200,000 The Asahi Bank, Ltd. 2,108,622 2,304,893 0.6
100,000 The Bank of Tokyo, Ltd. 1,301,028 1,496,158 0.4
50,000 The Mitsubishi Bank, Ltd. 1,389,313 1,117,065 0.3
------------ ------------ ------
<PAGE> 4,798,963 4,918,116 1.3
Broadcasting 300,000 Tokyo Broadcasting System 3,736,661 5,064,699 1.3
& Publishing
Business Services 150,000 Kamigumi Co., Ltd. 1,805,921 1,592,196 0.4
Chemicals 300,000 Asahi Chemical Industry 2,135,530 2,244,238 0.6
350,000 Sumitomo Chemical Co. 1,829,587 2,027,396 0.5
200,000 Toray Industries, Inc. 1,520,350 1,490,093 0.4
------------ ------------ ------
5,485,467 5,761,727 1.5
Construction & Housing 200,000 Shimizu Corp. 1,920,325 1,975,334 0.5
125,000 Taisei Prefab Construction Co. 1,946,480 1,086,736 0.3
------------ ------------ ------
3,866,805 3,062,070 0.8
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Held/ Value Percent of
Industries Face Amount Investments Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
PACIFIC BASIN (concluded)
Japan (concluded)
Electrical Equipment 48,000 Daimei Telecom Engineering $ 668,600 $ 567,732 0.1%
270,000 Sumitomo Electric Industry, Ltd. 2,968,251 3,766,680 1.0
------------ ------------ ------
3,636,851 4,334,412 1.1
Electronics 150,000 Casio Computer Co. 1,853,397 1,895,471 0.5
200,000 Hitachi Ltd. 2,079,745 1,975,334 0.5
29,000 Keyence Corp. 2,038,471 3,312,778 0.8
85,000 Murata Manufacturing Co., Ltd. 2,448,383 3,437,121 0.9
200,000 Sharp Corp. 3,027,869 3,477,558 0.9
70,000 Uniden Corp. 2,226,522 1,769,106 0.5
------------ ------------ ------
13,674,387 15,867,368 4.1
Financial Services 300,000 Daiwa Securities Co., Ltd. 3,725,815 3,912,253 1.0
170,000 Mitsubishi Trust & Banking Corp. 2,229,016 2,405,985 0.7
310,000 Yamaichi Securities Company Ltd. 2,982,597 2,275,171 0.6
------------ ------------ ------
8,937,428 8,593,409 2.3
<PAGE>
Industrial Components 100,000 Futaba Industrial Co. 1,670,788 2,072,382 0.5
40,000 Mabuchi Motor Co. 2,349,535 2,931,662 0.8
------------ ------------ ------
4,020,323 5,004,044 1.3
Insurance 200,000 Tokio Marine & Fire Insurance Co., Ltd. 2,573,815 2,304,892 0.6
Machinery & Engineering 300 Aichi Corp. 3,401 3,184 0.0
200,000 Makino Milling Machine 1,422,848 1,781,237 0.5
100,000 ++Okuma Corp. 988,096 933,078 0.2
------------ ------------ ------
2,414,345 2,717,499 0.7
Machinery & Equipment 300,000 Mitsubishi Heavy Industries Ltd. 2,198,026 2,226,041 0.6
Merchandising 35,000 Aoyama Trading Co. 2,287,334 781,945 0.2
60,000 Ito--Yokado Co., Ltd. 2,604,247 3,184,391 0.9
100,000 Marui Co., Ltd. 1,855,053 1,688,233 0.4
------------ ------------ ------
6,746,634 5,654,569 1.5
Metals 1,000,000 NKK Corp. 2,741,551 2,759,806 0.7
500,000 Sumitomo Metal Industries Co., Ltd. 1,679,618 1,632,632 0.5
------------ ------------ ------
4,421,169 4,392,438 1.2
Real Estate 200,000 Mitsui Fudosan 2,482,763 2,062,273 0.5
Recreation 65,000 Sony Music Entertainment (Japan) Inc. 2,980,367 3,285,483 0.9
Utilities-- 200 Nippon Telephone & Telegraph Corp. (Ordinary) 1,772,271 1,698,342 0.4
Telecommunications
Wholesale & 200,000 Mitsui & Co. 1,346,038 1,736,757 0.5
International Trade
Total Investments in Japan 87,405,133 92,420,148 24.2
Malaysia
Banking 583,333 Commerce Asset-Holding BHD 1,276,855 2,282,836 0.6
Construction & Housing 150,000 Ekran BHD 573,279 522,444 0.2
150,000 Ekran BHD (New) 'A' 0 484,287 0.1
------------ ------------ ------
573,279 1,006,731 0.3
Real Estate 100,000 Technology Resources Industries BHD 393,521 340,468 0.1
Telecommunications 400,000 Telekom Malaysia BHD 1,837,601 2,942,903 0.8
Utilities 200,000 Tenaga Nasional BHD 879,094 860,956 0.2
Total Investments in Malaysia 4,960,350 7,433,894 2.0
<PAGE>
New Zealand
Telecommunications 400,000 Telecom Corp. of New Zealand Ltd. (Class C) (ADR)* 1,278,315 1,354,752 0.4
Total Investments in New Zealand 1,278,315 1,354,752 0.4
Singapore
Air Transport 100,000 Singapore Airlines, Ltd. 383,769 970,277 0.3
Banking 70,000 Overseas Chinese Banking Corp. 673,166 717,458 0.2
Multi-Industry 300,000 Amcol Holdings Ltd. 838,803 623,164 0.2
120,000 Keppel Corp. Ltd. 851,434 975,743 0.2
------------ ------------ ------
1,690,237 1,598,907 0.4
Shipping 400,000 Straits Steamship Land 962,487 1,333,789 0.3
Telecommunications 400,000 Singapore Telecommunications Ltd. 907,320 800,819 0.2
Total Investments in Singapore 4,616,979 5,421,250 1.4
South Korea
Aerospace 2,983 Samsung Aerospace Industries (New) 77,985 101,748 0.0
Banking 91,875 Hanil Bank 1,273,823 1,529,207 0.4
Construction & Housing 26,265 Hyundai Engineering and Construction Co. 539,284 1,516,891 0.4
Machinery & Engineering 14,500 Samsung Heavy Industry 737,089 805,029 0.2
1,799 Samsung Heavy Industry (New Shares) 58,499 84,685 0.0
------------ ------------ ------
795,588 889,714 0.2
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,623,965 0.5
Total Investments in South Korea 3,783,795 5,661,525 1.5
Taiwan
Electrical Equipment US$1,000,000 Teco Electric & Machinery Co., 2.75% due 4/15/2004 1,000,000 947,500 0.3
Total Investments in Taiwan 1,000,000 947,500 0.3
<PAGE>
Thailand
Building Materials 48,500 ++++Jasmine International Ltd. 670,901 921,523 0.3
28,700 Siam Cement Group 848,980 1,695,514 0.4
------------ ------------ ------
1,519,881 2,617,037 0.7
Electrical Equipment 40,000 United Communication Industry 796,556 1,117,675 0.3
Telecommunications 60,000 Advanced Information Service 643,081 914,897 0.2
Total Investments in Thailand 2,959,518 4,649,609 1.2
Total Investments in the Pacific Basin 129,470,120 142,562,026 37.5
SOUTHEAST ASIA
India
Electrical Equipment US$325,000 Sterlite Industry, 3.50% due 6/30/1999 325,000 300,625 0.1
Textiles 40,000 Indian Rayon & Industries (GDR) (b) 844,207 720,000 0.2
Total Investments in India 1,169,207 1,020,625 0.3
Total Investments in Southeast Asia 1,169,207 1,020,625 0.3
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Held/ Value Percent of
Industries Face Amount Investments Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
WESTERN EUROPE
Austria
Energy 11,000 OMV Aktiengesellschaft $ 997,161 $ 922,388 0.2%
Total Investments in Austria 997,161 922,388 0.2
<PAGE>
Belgium
Automobiles 2,500 D'ieteren N.V. 214,059 176,302 0.0
Broadcasting 1,900 Audiofina 1,045,105 960,012 0.3
& Publishing
Total Investments in Belgium 1,259,164 1,136,314 0.3
Denmark
Telecommunications 15,000 Tele Danmark A/S 'B' 710,499 783,883 0.2
Total Investments in Denmark 710,499 783,883 0.2
Finland
Forest Products 20,000 Kymmene OY Corp. 517,588 526,532 0.1
Telecommunications 2,360 Benefon OY 800,821 606,746 0.2
16,600 OY Nokia AB 1,564,267 2,270,465 0.6
------------ ------------ ------
2,365,088 2,877,211 0.8
Total Investments in Finland 2,882,676 3,403,743 0.9
France
Appliances 25,000 Moulinex S.A. 536,491 517,389 0.1
Broadcasting 6,220 NRJ S.A. 737,863 658,654 0.2
& Publishing
Building Materials 5,000 Imetal Co. 502,687 477,447 0.1
Business & Public 17,140 Compagnie Generale des Eaux 1,574,432 1,639,871 0.4
Services
Construction & Housing 13,350 Bouygues S.A. 1,439,564 1,413,669 0.4
Energy 12,000 Societe Nationale Elf Aquitane 917,095 821,505 0.2
Financial Services 6,250 Credit Local de France 447,395 482,091 0.1
Industrial--Other 37,000 ++Michelin Tire Corp. 1,515,115 1,422,866 0.4
Total Investments in France 7,670,642 7,433,492 1.9
<PAGE>
Germany
Banking 2,000 Deutsche Bank AG 651,283 944,430 0.2
Building Materials 6,000 Friedrich Grohe (Preferred) 1,478,231 1,678,563 0.4
Chemicals 10,000 BASF AG (Ordinary) 2,051,098 1,938,567 0.5
Health & Personal Care 3,000 Wella AG (Preferred) 1,257,500 1,911,802 0.5
Machinery & Equipment 4,000 Jungheinrich AG (Preferred) 930,503 853,939 0.2
Multi-Industry 5,000 Vereinigte Elektrizitaets & Bergwerks AG (Veba) 1,678,120 1,640,963 0.5
Total Investments in Germany 8,046,735 8,968,264 2.3
Italy
Broadcasting 50,000 Arnoldo Mondadori Editore 475,059 423,454 0.1
& Publishing
Merchandising 125,000 La Rinascente RISP 285,348 339,999 0.1
Telecommunications 300,000 Telecom Italia SPA (Ordinary) 280,800 777,054 0.2
500,000 Telecom Italia SPA (Savings) 978,610 1,035,452 0.3
------------ ------------ ------
1,259,410 1,812,506 0.5
Total Investments in Italy 2,019,817 2,575,959 0.7
Netherlands
Beverages 20,000 Heineken N.V. 2,176,767 2,892,430 0.7
& Tobacco
Broadcasting 10,000 Ver Ner Uitgevers 1,075,021 983,495 0.2
& Publishing
Chemicals 11,600 ++European Vinyls Corp. International N.V. 512,097 507,046 0.1
Construction 90,000 IHC Caland N.V. 1,977,215 2,125,783 0.6
& Housing
Electronics 57,000 Philips Industries Inc. 1,790,368 1,725,896 0.5
Metal Fabricating 25,000 Koninklijke Nederlandsche Hoogovens
Staalfabrieken N.V. 1,136,219 1,038,702 0.3
<PAGE>
Shipping 30,000 Koninklijke Van Ommeren NV 911,131 768,355 0.2
Wholesale & 28,500 Hagemeyer N.V. 2,298,541 2,246,585 0.6
International Trade
Total Investments in the Netherlands 11,877,359 12,288,292 3.2
Norway
Broadcasting 41,400 Schibsted Gruppen A/S 455,529 442,813 0.1
& Publishing
Multi-Industry 100,000 Kverneland Gruppen A/S 1,315,522 1,260,074 0.3
40,000 Unitor Ships Service 796,035 630,036 0.2
------------ ------------ ------
2,111,557 1,890,110 0.5
Total Investments in Norway 2,567,086 2,332,923 0.6
Portugal
Beverages 20,000 Sumolis Companhia Industrial de Frutas
& Tobacco e Bebidas S.A. 221,229 213,350 0.1
Total Investments in Portugal 221,229 213,350 0.1
Spain
Banking 10,000 Banco Popular Espanol S.A. 1,289,096 1,257,251 0.3
Building Materials 19,000 Cristaleria Espanol S.A. 1,200,734 1,076,184 0.3
Energy 50,000 Repsol S.A. 1,662,606 1,438,932 0.4
Forest Products 56,500 Empresa Nacional de Celulosas S.A. 1,134,583 1,386,622 0.4
Telecommunications 100,000 Telefonica de Espana Co. 1,347,830 1,282,443 0.3
Utilities 43,060 Empresa Nacional de Electricidad S.A. 1,531,115 1,949,204 0.5
Total Investments in Spain 8,165,964 8,390,636 2.2
<PAGE>
Sweden
Automobiles 16,000 Autoliv AB 523,591 560,472 0.2
65,000 Catena AB 555,934 564,918 0.2
72,500 Volvo AB 'B' 1,448,465 1,394,878 0.4
------------ ------------ ------
2,527,990 2,520,268 0.8
Engineering 30,000 SKF AB 'B' Free 540,908 531,414 0.1
& Construction
Forest Products/ 28,000 Mo Och Domsjoe AB 'B' Free 1,278,795 1,315,199 0.3
Paper & Packaging 350,000 Rottneros Bruks AB Free 473,280 473,695 0.1
------------ ------------ ------
1,752,075 1,788,894 0.4
Health & Personal Care 113,400 Astra AB 'B' Fria 2,120,584 3,039,448 0.8
Metals 90,000 Trelleborg AB 'B' 1,330,902 1,313,607 0.3
Multi-Industry 54,000 ++Kinnevik AB 'B' Free 1,821,410 1,683,806 0.4
Shipping 37,000 ICB Shipping AB 'B' Free 350,695 289,657 0.1
Total Investments in Sweden 10,444,564 11,167,094 2.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Shares Held/ Value Percent of
Industries Face Amount Investments Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
WESTERN EUROPE (concluded)
Switzerland
Building Materials 1,417 Holderbank Financiere Glaris Ltd. $ 1,036,354 $ 1,098,375 0.3%
Electrical Equipment 2,000 BBC Brown Boveri & Co. 1,542,228 1,676,836 0.4
Food & Household 1,100 Nestle AG 439,670 1,020,867 0.3
Products
Health & Personal Care 931 Roche Holding AG 4,493,036 4,095,699 1.1
Insurance 1,180 Zurich Insurance Co. 1,169,946 1,102,222 0.3
<PAGE>
Shipping 4,000 Danzas Holding AG 954,580 789,453 0.2
Total Investments in Switzerland 9,635,814 9,783,452 2.6
United Kingdom
Banking 300,000 Bank of Scotland 916,166 967,603 0.3
340,000 National Westminster Bank PLC 2,114,246 2,778,804 0.7
------------ ------------ ------
3,030,412 3,746,407 1.0
Building Materials & 500,000 Spring Ram Corp. PLC 1,450,088 340,540 0.1
Components
Business & 29,000 Bell Cablemedia PLC (ADR)* 493,000 652,500 0.2
Public Services 125,000 Carlton Communications PLC (Ordinary) 1,292,970 1,715,420 0.4
210,000 Chubb Security PLC 1,106,853 1,062,014 0.3
------------ ------------ ------
2,892,823 3,429,934 0.9
Electronics 800,000 Astec (BSR) 1,105,101 1,070,939 0.3
Energy 450,000 British Petroleum Co. PLC 2,236,817 2,994,402 0.8
Food & Household 200,000 Cadbury Schweppes PLC 1,741,253 1,346,502 0.4
Products
Health & 200,000 Goldsborough Healthcare PLC 506,362 447,790 0.1
Personal Care
Merchandising 570,000 House of Fraser PLC 1,851,700 1,673,341 0.4
350,000 Next PLC 1,098,607 1,391,908 0.4
------------ ------------ ------
2,950,307 3,065,249 0.8
Multi-Industry 350,000 BTR PLC 2,065,257 1,570,006 0.4
150,000 Siebe PLC 1,033,849 1,308,142 0.3
------------ ------------ ------
3,099,106 2,878,148 0.7
Total Investments in the United Kingdom 19,012,269 19,319,911 5.1
Total Investments in Western Europe 85,510,979 88,719,701 23.2
<CAPTION>
SHORT-TERM Face
SECURITIES Amount
<S> <C> <S> <C> <C> <C>
United States
<PAGE>
Commercial Paper*** US$17,917,000 Associates Corp. of North America, 5.70%
due 12/01/1994 17,917,000 17,917,000 4.7
US Government & 10,000,000 Federal Home Loan Mortgage Corp., 5.38%
Agency Obligations*** due 12/09/1994 9,988,044 9,988,044 2.6
Total Investments in Short-Term Securities 27,905,044 27,905,044 7.3
<CAPTION>
Par Premiums
OPTIONS Value Paid
<S> <C> <S> <C> <C> <C>
Currency Put Options Japanese Yen:
Purchased US$13,910,785 Expiring December 1994 at Y=107.83 625,985 1,391 0.0
13,602,975 Expiring January 1995 at Y=110.27 627,097 1,360 0.0
Total Options Purchased 1,253,082 2,751 0.0
Total Investments $344,977,872 379,159,562 99.4
============
Other Assets Less Liabilities 2,386,880 0.6
------------ ------
Net Assets $381,546,442 100.0%
============ ======
<FN>
(a)The rights may be exercised until 9/29/95.
(b)Global Depositary Receipts (GDR).
*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.
++Non-income producing security.
++++Restricted securities as to resale. The value of the Company's investment
was approximately $4,791,000, representing 1.3% of net assets.
<PAGE>
Acquisition Value
Issue Date Cost (Note 1a)
Grupo Televisa, S.A. de
C.V. (ADR) 12/01/91 $ 953,349 $1,357,500
Jasmine International Ltd. 5/04/94 670,901 921,523
Telecom Argentina 3/23/92
Stet-France Telecom S.A. (ADR) 11/12/92 1,400,296 2,210,000
Venezolana de Prerreducidos
Caroni 'Venprecar' C.A. (GDS) 2/13/92 379,600 302,250
Total $3,404,146 $4,791,273
========== ==========
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of November 30, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$343,724,790) (Note 1a) $379,156,811
Put options purchased, at value (cost--$1,253,082) (Notes 1a & 1c) 2,751
Foreign cash 312,512
Receivables:
Securities sold $ 3,066,430
Capital shares sold 1,183,640
Dividends 695,288
Interest 34,420 4,979,778
------------
Prepaid registration fees and other assets (Note 1f) 15,826
------------
Total assets 384,467,678
------------
Liabilities: Payables:
Capital shares redeemed 954,551
Investment adviser (Note 2) 321,718
Securities purchased 302,939
Distributor (Note 2) 43,596 1,622,804
------------
Accrued expenses and other liabilities 1,298,432
------------
Total liabilities 2,921,236
------------
Net Assets: Net assets $381,546,442
============
<PAGE>
Net Assets Class A Common Stock, $0.10 par value, 100,000,000 shares authorized $ 2,574,934
Consist of: Class B Common Stock, $0.10 par value, 100,000,000 shares authorized 397,072
Class C Common Stock, $0.10 par value, 100,000,000 shares authorized 1,415
Class D Common Stock, $0.10 par value, 100,000,000 shares authorized 12,414
Paid-in capital in excess of par 330,479,269
Overdistributed investment income--net 530,009
Undistributed realized capital gains on investments and foreign currency transactions--net 13,372,324
Unrealized appreciation on investments and foreign currency transactions--net 34,179,005
------------
Net assets $381,546,442
============
Net Asset Class A Shares--Based on net assets of $330,132,381 and 25,749,344 shares outstanding $ 12.82
Value: ============
Class B Shares--Based on net assets of $49,646,500 and 3,970,722 shares outstanding $ 12.50
============
Class C Shares--Based on net assets of $176,892 and 14,145 shares outstanding $ 12.51
============
Class D Shares--Based on net assets of $1,590,669 and 124,135 shares outstanding $ 12.81
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended November 30, 1994
<S> <S> <C> <C>
Investment Dividends (net of $385,983 foreign withholding tax) $ 4,425,362
Income Interest and discount earned 1,891,166
(Notes 1d & 1e): ------------
Total income 6,316,528
------------
Expenses: Investment advisory fees (Note 2) 3,780,445
Transfer agent fees--Class A (Note 2) 534,710
Distribution fees--Class B (Note 2) 501,902
Custodian fees 331,723
Printing and shareholder reports 268,914
Accounting services 138,310
Registration fees (Note 1f) 128,814
Transfer agent fees--Class B (Note 2) 97,005
Professional fees 76,959
Organizational expenses 62,704
Directors' fees and expenses 34,955
Pricing fees 5,357
Transfer agent fees--Class D (Note 2) 260
Account maintenance fees--Class D (Note 2) 180
Distribution fees--Class C (Note 2) 159
Foreign tax expense 130
Transfer agent fees--Class C (Note 2) 62
Other 6,717
------------
Total expenses 5,969,306
------------
Investment income--net 347,222
------------
<PAGE>
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net $ 15,363,004
(Loss) on Foreign currency transactions--net (94,755) 15,268,249
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net (5,895,990)
(Notes 1b, 1e & 3): Foreign currency transactions--net (1,235,033) (7,131,023)
------------ ------------
Net realized and unrealized gain on investments and foreign currency
transactions 8,137,226
------------
Net Increase in Net Assets Resulting from Operations $ 8,484,448
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended November 30,
Increase (Decrease) in Net Assets: 1994 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 347,222 $ 475,574
Realized gain on investments and foreign currency transactions--net 15,268,249 19,105,708
Change in unrealized appreciation/depreciation on investments and foreign
currency transactions--net (7,131,023) 18,287,892
------------ ------------
Net increase in net assets resulting from operations 8,484,448 37,869,174
------------ ------------
Dividends & Investment income--net:
Distributions to Class A (292,787) --
Shareholders Realized gain on investments--net:
(Note 1g): Class A (15,976,086) (11,512,553)
Class B (1,819,251) (1,598,607)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (18,088,124) (13,111,160)
------------ ------------
Capital Share Net increase in net assets derived from capital share transactions 100,706,623 75,813,575
Transactions ------------ ------------
(Note 4):
Net Assets: Total increase in net assets 91,102,947 100,571,589
Beginning of year 290,443,495 189,871,906
------------ ------------
End of year* $381,546,442 $290,443,495
<PAGE> ============ ============
<FN>
*Undistributed investment income--net $ 530,009 $ 475,574
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
The following per share data and ratios For the For the
have been derived from information provided Seven-Month Year
in the financial statements. Period Ended Ended
For the Year Ended November 30, Nov. 30, April 30,
Increase (Decrease) in Net Asset Value: 1994++ 1993++ 1992++ 1991 1990 1990
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.07 $ 11.78 $ 10.95 $ 10.48 $ 10.91 $ 11.79
Operating -------- -------- -------- -------- -------- --------
Performance: Investment income--net .03 .04 .10 .16 .17 .20
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .53 2.07 1.05 .53 (.30) .62
-------- -------- -------- -------- -------- --------
Total from investment operations .56 2.11 1.15 .69 (.13) .82
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.01) -- (.10) (.21) (.13) (.21)
Realized gain on investments--net (.80) (.82) (.22) (.01) (.17) (1.49)
-------- -------- -------- -------- -------- --------
Total dividends and distributions (.81) (.82) (.32) (.22) (.30) (1.70)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 12.82 $ 13.07 $ 11.78 $ 10.95 $ 10.48 $ 10.91
======== ======== ======== ======== ======== ========
Total Investment Based on net asset value per share 4.39% 19.16% 10.67% 6.77% (1.45%)+++ 6.93%
Return:** ======== ======== ======== ======== ======== ========
Ratios to Average Expenses 1.44% 1.43% 1.49% 1.48% 1.59%* 1.49%
Net Assets: ======== ======== ======== ======== ======== ========
Investment income (loss)--net .23% .32% (.19%) 1.31% 2.63%* 1.65%
======== ======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $330,132 $256,203 $166,947 $165,687 $176,898 $187,843
Data: ======== ======== ======== ======== ======== ========
Portfolio turnover 40.18% 56.98% 65.93% 63.94% 34.44% 84.21%
======== ======== ======== ======== ======== ========
<PAGE>
<CAPTION>
Class B
The following per share data and ratios For the For the
have been derived from information provided Seven-Month Year
in the financial statements. Period Ended Ended
For the Year Ended November 30, Nov. 30, April 30,
Increase (Decrease) in Net Asset Value: 1994++ 1993++ 1992++ 1991 1990 1990
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.74 $ 11.62 $ 10.82 $ 10.36 $ 10.82 $ 11.74
Operating -------- -------- -------- -------- -------- --------
Performance: Investment income (loss)--net (.10) (.08) (.03) .04 .10 .16
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .52 2.02 1.05 .54 (.30) .55
-------- -------- -------- -------- -------- --------
Total from investment operations .42 1.94 1.02 .58 (.20) .71
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- -- (.11) (.09) (.14)
Realized gain on investments--net (.66) (.82) (.22) (.01) (.17) (1.49)
-------- -------- -------- -------- -------- --------
Total dividends and distributions (.66) (.82) (.22) (.12) (.26) (1.63)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 12.50 $ 12.74 $ 11.62 $ 10.82 $ 10.36 $ 10.82
======== ======== ======== ======== ======== ========
Total Investment Based on net asset value per share 3.32% 17.87% 9.58% 5.67% (2.08%)+++ 5.91%
Return:** ======== ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding account maintenance
Net Assets: and distribution fees 1.48% 1.46% 1.52% 1.51% 1.63%* 1.53%
======== ======== ======== ======== ======== ========
Expenses 2.48% 2.46% 2.52% 2.51% 2.63%* 2.53%
======== ======== ======== ======== ======== ========
Investment income (loss)--net (.80%) (.72%) (1.19%) .25% 1.54%* .65%
======== ======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 49,647 $ 34,241 $ 2,925 $ 24,960 $ 22,623 $ 16,342
Data: ======== ======== ======== ======== ======== ========
Portfolio turnover 40.18% 56.98% 65.93% 63.94% 34.44% 84.21%
======== ======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns excludes the effects of sales loads.
++Based on average shares outstanding during the period.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Period October 21, 1994+
to November 30, 1994
Increase (Decrease) in Net Asset Value: Class C++ Class D++
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 13.08 $ 13.39
Operating -------- --------
Performance: Investment loss--net (.02) (.01)
Realized and unrealized loss on investments and foreign currency transactions--net (.55) (.57)
-------- --------
Total from investment operations (.57) (.58)
-------- --------
Less dividends and distributions:
Investment income--net -- --
Realized gain on investments--net -- --
-------- --------
Total dividends and distributions -- --
-------- --------
Net asset value, end of period $ 12.51 $ 12.81
======== ========
Total Investment Based on net asset value per share (4.36%)+++ (4.33%)+++
Return:** ======== ========
Ratios to Average Expenses, excluding account maintenance and distribution fees 2.00%* 1.98%*
Net Assets: ======== ========
Expenses 3.00%* 2.23%*
======== ========
Investment loss--net (1.31%)* (.67%)*
======== ========
Supplemental Net assets, end of period (in thousands) $ 177 $ 1,591
Data: ======== ========
Portfolio turnover 40.18% 40.18%
======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
++++Based on average shares outstanding during the period.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Holdings (the "Company") is registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Company offers four classes
of shares under the Merrill Lynch Select Pricing SM System. Shares of
Class A and Class D are sold with a front-end sales charge. Shares
of Class B and Class C may be subject to a contingent deferred sales
charge. All classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions,
except that Class B, Class C and Class D Shares bear certain
expenses related to the account maintenance of such shares, and
Class B and Class C Shares also bear certain expenses related to
the distribution of such shares. Each class has exclusive voting
rights with respect to matters relating to its account maintenance
and distribution expenditures. The following is a summary of
significant accounting policies followed by the Company.
(a) Valuation of securities--Portfolio securities which are
traded on stock exchanges are valued at the last sale price on the
exchange on which such securities are traded, as of the close of
business on the day the securities are being valued or, lacking
any sales, at the last available bid price. In cases where
securities are traded on more than one exchange, the securities
are valued on the exchange designated by or under the authority of
the Board of Directors as the primary market. Securities traded
in the over-the-counter market are valued at the last available bid
price in the over-the-counter market prior to the time of valuation.
Options written by the Company are valued at the last asked price
in the case of exchange-traded options or, in the case of options
traded in the over-the-counter market, the average of the last
asked price as obtained from one or more dealers. Options purchased
by the Company are valued at the last sale price in the case of
exchange-traded options or, in the case of options traded in the
over-the-counter market, the average of the last bid price as
obtained from two or more dealers unless there is only one dealer,
in which case that dealer's price is used. Securities with sixty
days or less to maturity are valued at amortized cost, which
approximates market value. Securities and assets for which market
quotations are not readily available are valued at fair value as
determined in good faith by or under the direction of the Board
of Directors of the Company.
<PAGE>
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing
when recognized. Assets and liabilities denominated in foreign
currencies are valued at the exchange rate at the end of the
period. Foreign currency transactions are the result of settling
(realized) or valuing (unrealized) such transactions expressed
in foreign currencies into US dollars. Realized and unrealized
gains or losses from investments include the effects of foreign
exchange rates on investments.
The Company is authorized to enter into forward foreign exchange
contracts as a hedge against either specific transactions or portfolio
positions. Such contracts are not entered on the Company's records.
However, the effect on operations is recorded from the date the
Company enters into such contracts. Premium or discount is amortized
over the life of the contracts.
The Company is authorized to purchase or sell listed or over-the-counter
foreign currency options, foreign currency futures and related options
on foreign currency futures as a short or long hedge against possible
variations in foreign exchange rates. Such transactions could be effected
with respect to hedges on non-US dollar denominated securities owned by the
Company, sold by the Company but not yet delivered, or committed or
anticipated to be purchased by the Company.
(c) Options--The Company is authorized to purchase and write call
and put options. When the Company writes an option, an amount
equal to the premium received by the Company is reflected as an
asset and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current value of the
option written.
When a security is sold or bought through an exercise of an option,
the related premium received (or paid) is deducted from (or
added to) the basis of the security sold. When an option expires
(or the Company enters into a closing transaction), the Company
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of
the closing transactions exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(d) Income taxes--It is the Company's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required. Under the applicable foreign tax law,
a withholding tax may be imposed on interest, dividends, and
capital gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are
entered into (the trade dates). Dividend income is recorded on
the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded
as soon as the Company is informed of the ex-dividend date.
Interest income is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
<PAGE>
(f) Prepaid registration fees--Prepaid registration fees are
charged to expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid
by the Company are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Company has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM"). Effective
January 1, 1994, the investment advisory business of MLAM was
reorganized from a corporation to a limited partnership. Both prior
to and after the reorganization, ultimate control of MLAM was
vested with Merrill Lynch & Co., Inc. ("ML & Co."). The general
partner of MLAM is Princeton Services, Inc. ("PSI"), an indirect
wholly-owned subsidiary of ML & Co., which is a limited
partner. The Company has also entered into a Distribution Agreement
and a Distribution Plan with Merrill Lynch Funds Distributor, Inc.
("MLFD" or "Distributor"), a wholly-owned subsidiary of MLIM.
As compensation for its services to the Company, the Investment
Adviser receives monthly compensation at the annual rate of 1.0%
of the average daily net assets of the Company. MLAM entered into
Investment Research Agreements with Lombard Odier Global Portfolio
Management Limited ("LOIPM") and Nomura Capital Management, Inc.
("NCM") pursuant to which LOIPM and NCM furnished MLAM with
economic research, securities analysis and investment recommendations
and reviewed and rendered investment research with respect to the
portfolio of the Company. The Investment Research Agreements were
terminated as of April 1, 1994. Pursuant to their respective
Investment Research Agreements, the Investment Adviser paid LOIPM
and NCM fees at the annual rates of 0.15% and 0.20%, respectively,
of the average daily net assets of the Company.
<PAGE>
Certain states in which shares of the Company are qualified for sale
impose limitations on the expenses of the Company. The most
restrictive annual expense limitation requires that the Investment
Adviser reimburse the Company to the extent that expenses (excluding
interest, taxes, distribution fees, brokerage fees and commissions
and extraordinary items) exceed 2.5% of the Company's first $30
million of average daily net assets, 2.0% of the Company's next
$70 million of average daily net assets and 1.5% of the daily net
assets in excess thereof. In the event reimbursement is required
pursuant to such limitations, MLAM will be responsible for the
amounts required to be reimbursed, but the fees paid to LOIPM and
NCM will be reduced pro rata. No fee payment will be made to the
Investment Adviser during any fiscal year which will cause such
expenses to exceed the most restrictive expense limitation at the
time of such payment. For the year ended November 30, 1994,
investment advisory fees were $3,780,445, of which $3,371,747 was
paid to MLAM, $175,156 was paid to LOPIM and $233,542 was paid to
NCM under the terms of their respective research agreements prior
to termination.
Pursuant to the distribution plans ("the Distribution Plans")
adopted by the Company in accordance with Rule 12b-1 under the
Investment Company Act of 1940, the Company pays the Distributor
ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares as follows:
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Company. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services
to Class B, Class C and Class D shareholders. The ongoing
distribution fee compensates the Distributor and MLPF&S for providing
shareholder and distribution-related services to Class B and Class C
shareholders.
<PAGE>
For the year ended November 30, 1994, MLFD earned underwriting
discounts and MLPF&S earned dealer concessions on sales of the
Company's Class A and Class D Shares as follows:
MLFD MLPF&S
Class A $8,688 $133,688
Class D $ 154 $ 2,570
MLPF&S received contingent deferred sales charges of $54,858
relating to transactions in Class B Shares, and $20,959 in
commissions on the execution of portfolio security transactions
for the Company for the year ended November 30, 1994.
Financial Data Services, Inc. ("FDS"), a wholly owned subsidiary
of ML & Co., acts as the Company's transfer agent.
Accounting services are provided to the Company by MLAM at cost.
Certain officers and/or directors of the Company are officers and/or
directors of MLAM, PSI, NCM, LOIPM (including their affiliated
companies), MLFP&S, FDS, MLFD and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended November 30, 1994 were $207,990,432 and
$133,774,417, respectively.
Net realized and unrealized gains (losses) as of November 30, 1994
were as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 15,363,522 $ 35,432,021
Short-term investments (518) --
Currency put options purchased -- (1,250,331)
Foreign currency transactions (94,755) (2,685)
------------ ------------
Total $ 15,268,249 $ 34,179,005
============ ============
As of November 30, 1994, net unrealized appreciation/depreciation
for Federal income tax purposes aggregated $35,432,021, of which
$52,629,498 related to appreciated securities and $17,197,477
related to depreciated securities. The aggregate cost of investments
at November 30, 1994 for Federal income tax purposes was $343,724,790.
<PAGE>
4. Capital Stock Transactions:
Net increase in net assets derived from capital share transactions
was $100,706,623 and $75,813,575 for the years ended November 30,
1994 and November 30, 1993, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended November 30, 1994 Shares Amount
Shares sold 11,383,578 152,341,771
Shares issued to shareholders in
reinvestment of dividends and distributions 1,160,533 14,703,952
------------ ------------
Total issued 12,544,111 167,045,723
Shares redeemed (6,393,917) (84,948,853)
------------ ------------
Net increase 6,150,194 82,096,870
============ ============
Class A Shares for the Year Dollar
Ended November 30, 1993 Shares Amount
Shares sold 9,166,536 112,504,555
Shares issued to shareholders in
reinvestment of distributions 900,399 9,949,408
------------ ------------
Total issued 10,066,935 122,453,963
Shares redeemed (4,639,892) (55,755,689)
------------ ------------
Net increase 5,427,043 66,698,274
============ ============
Class B Shares for the Year Dollar
Ended November 30, 1994 Shares Amount
Shares sold 2,992,769 $ 39,141,551
Shares issued to shareholders in
reinvestment of distributions 131,099 1,636,117
------------ ------------
Total issued 3,123,868 40,777,668
Shares redeemed (1,737,178) (22,670,466)
------------ ------------
Conversion of shares (102,695) (1,309,366)
Net increase 1,283,995 $ 16,797,836
============ ============
<PAGE>
Class B Shares for the Year Dollar
Ended November 30, 1993 Shares Amount
Shares sold 1,235,408 15,456,464
Shares issued to shareholders in
reinvestment of distributions 126,908 1,380,757
------------ ------------
Total issued 1,362,316 16,837,221
Shares redeemed (649,303) (7,721,920)
------------ ------------
Net increase 713,013 9,115,301
============ ============
Class C Shares for the Period
October 21, 1994++ to Dollar
November 30, 1994 Shares Amount
Shares sold 16,968 221,416
------------ ------------
Total issued 16,968 221,416
Shares redeemed (2,823) (36,788)
------------ ------------
Net increase 14,145 184,628
============ ============
[FN]
++Commencement of Operations.
Class D Shares for the Period
October 21, 1994++ to Dollar
November 30, 1994 Shares Amount
Shares sold 24,298 323,555
Conversion of shares 100,258 1,309,366
------------ ------------
Total issued 124,556 1,632,921
Shares redeemed (421) (5,632)
------------ ------------
Net increase 124,135 1,627,289
============ ============
[FN]
++Commencement of Operations.
5. Commitments:
On November 30, 1994, the Company had entered into forward
exchange contracts under which it had agreed to purchase and sell
various foreign currencies with an approximate value of $895,000
and $1,971,000, respectively.
<PAGE>
6. Subsequent Event:
On December 14, 1994, the Board of Directors declared an ordinary
income dividend of $.006867 per Class A Share and $.002781 per
Class D Share and a capital gains distribution of $0.514407 per
Class A, Class B, Class C and Class D Share, payable on December 21,
1994 to shareholders of record as of December 13, 1994.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Global Holdings:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill
Lynch Global Holdings as of November 30, 1994, the related
statements of operations for the year then ended and changes in
net assets for each of the years in the two-year period then
ended, and the financial highlights for the periods presented.
These financial statements and the financial highlights are the
responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and the financial highlights are free
of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned at November 30, 1994 by correspondence with the
custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position
of Merrill Lynch Global Holdings as of November 30, 1994, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
January 12, 1995
</AUDIT-REPORT>
<PAGE>
PORTFOLIO CHANGES (unaudited)
For the Quarter Ended November 30, 1994
Additions
ALZA Corp.
Banco Popular Espanol S.A.
Bouygues
European Vinyls Corp. International N.V.
Ekran BHD (New) 'A'
First Pacific Co., Ltd.
Hagemeyer N.V.
ICN Pharmaceuticals, Inc., 8.50% due 11/15/1999
Jungheinrich AG (Preferred)
Kinnevik AB 'B' Free
Koninklijke Nederlandsche Hoogovens Staalfabrieken N.V.
Merck & Co.
Mercury General Corp.
Michelin Tire Corp.
NRJ S.A.
News Corp., Ltd. (Preferred)
Okuma Corp.
PPG Industries, Inc.
P.T. Indonesia Satellite (ADR)
Samsung Heavy Industry (New Shares)
Technology Resources Industries BHD
Teco Electric & Machinery, 2.75% due 4/15/2004
Toray Industries, Inc.
Trelleborg AB-'B'
Ver Ner Uitgevers
Viacom, Inc. (Class B)
Viacom (VCR) (Rights)
Deletions
ABN Amro Bank N.V.
Aran Energy PLC
Baybanks, Inc.
Boots Co. PLC
Colas Co.
Daimler-Benz AG (ADR)
GN Store Nord Holding (GREAT NORDIC)
Hankuk Glass Industry Company
Holderbank Financiere Glaris Ltd. (Warrants)
Huhtamaki Corp.
Lapeyre S.A.
National House Industries
P.T. Indocement Tunggal Prakar
Sekisui House Ltd.
Swiss Reinsurance
Telecomunicacoes Brasileiras S.A.--Telebras PN (Rights)
<PAGE>
PORTFOLIO INFORMATION (unaudited)
Worldwide
Investments as of
November 30, 1994
Percent of
Ten Largest Industries Net Assets
Telecommunications 7.1%
Banking 6.1
Broadcasting & Publishing 5.1
Multi-Industry 4.9
Electronics 4.9
Business & Public Services 4.6
Merchandising 4.0
Automobiles 3.7
Chemicals 3.0
Electrical Equipment 2.8
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
AFLAC, Inc. United States 1.5%
Tokyo Broadcasting System Japan 1.3
Toyota Motor Corp. Japan 1.1
Roche Holding AG Switzerland 1.1
Daiwa Securities Co., Ltd. Japan 1.0
Sun Hung Kai Properties, Ltd. Hong Kong 1.0
Sumitomo Electric Industry, Ltd. Japan 1.0
Sharp Corp. Japan 0.9
China Light & Power Co., Ltd. Hong Kong 0.9
Murata Manufacturing Co., Ltd. Japan 0.9
Global Economic
Sector
Representation
As a Percentage of
Equities as of
November 30, 1994
Services 32.0%
Capital Equipment 17.9
Finance 14.7
Consumer Goods 14.4
Materials 11.9
Multi-Industry 5.1
Energy 4.0
<PAGE>
APPENDIX GRAPHIC AND IMAGE MATERIAL.
ITEM 1:
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the fund's
Class A Shares compared to growth of an investment in the Morgan
Stanley Capital World Index. Beginning and ending values are:
11/84 11/94
ML Global Holdings++--
Class A Shares* $ 9,475 $32,855
Morgan Stanley Capital
World Index++++ $10,000 $40,326
A line graph depicting the growth of an investment in the fund's
Class B Shares compared to growth of an investment in the Morgan
Stanley Capital World Index. Beginning and ending values are:
10/21/88** 11/94
ML Global Holdings++--
Class B Shares* $10,000 $15,955
Morgan Stanley Capital
World Index++++ $10,000 $14,435
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++ML GLobal Holdings invests in an internationally diversified
portfolio of securities.
++++This unmanaged market capitalization-weighted Index is comprised
of a representative sampling of stocks of large-, medium-, and
small-capitalization companies in 22 countries, including the
United States.
