MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Quarterly Report
February 29, 1996
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.
Statements and other information herein are as dated and are subject
to change.
<PAGE>
Merrill Lynch
Global Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL HOLDINGS, INC.
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Philip L. Kirstein, Senior Vice President
Donald C. Burke, Vice President
Edward F. Korff, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Robert Harris, Secretary
<PAGE>
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, New York 11245
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
In the November annual report to shareholders, we anticipated near-
term volatility in the world's stock markets. This anticipation was
based primarily on two factors: the slowdown in the global economy
and increasing political turmoil worldwide. During the February
quarter, equity markets were volatile, and performance of various
industry segments was widely disparate.
Virtually all the world's economies slowed during the three months
ended February 29, 1996. In certain regions, the slowdown was
exacerbated by severe weather conditions, but fundamental economic
deterioration also was evident. Slowing growth reflected itself in a
number of ways across the markets. First, an increasing number of
companies reported disappointing earnings results. Second, investor
expectations shifted quite noticeably. As indications of diminished
economic activity became more widespread, investors reduced exposure
to cyclically sensitive market segments and added to areas with more
visible earnings growth or areas that had significantly lagged the
overall market performance. The combination of factors led to
significantly different performance among industry groups.
The good economic news is that inflation worldwide remains subdued.
This, together with slower economic growth, has led to interest rate
reductions around the globe. This monetary ease could lead to a re-
acceleration of growth later in the year. From a geographic
standpoint, the greatest scope for further interest rate reductions
would come in Europe, which could increase the relative attraction
of European equity markets.
<PAGE>
On the political front, there is continued turmoil and uncertainty.
Scandals rocked a number of governments and an unusual number of
closely contested elections added to stock market volatility. This
condition of uncertainty is expected to persist.
The near-term outlook is one of continued volatility. Economic
signals are likely to be mixed as the transition to more rapid
growth occurs later in the year. Longer term, we see many investment
opportunities globally. We continually attempt to use market
volatility as an opportunity, building positions in quality
companies during periods of market weakness.
Investment Environment
Japan
With the government's bank bailout plan mired in Parliamentary
debate, the Japanese stock market showed little movement during the
February quarter. Currency fluctuations, fiscal year-end selling by
domestic institutions, and investor speculation about a tightening
monetary policy have also impeded the market's progress.
On the economic front, recent data releases suggest that the
Japanese economy is on track for a modest recovery assisted by the
Bank of Japan's aggressively easy monetary stance and the direct
effects of last year's government fiscal stimulus program. There are
also signs that corporate profitability and confidence are improving
as the yen's steep rise reversed direction. Nevertheless, there
remains some skepticism about the sustainability of the recovery.
The question is whether private sector demand will take over as an
engine of growth when the benefits of public sector demand have run
their course. Skeptics forecast that the Japanese economy may begin
to lose momentum around mid-year because the government's economic
package is not large enough to sustain the recovery through the
second half of 1996. In particular, an upward-trending unemployment
rate in Japan, having reached 3% for the first time, may cap
consumer confidence, limit personal spending and lead to an extended
period of economic stagnation. We continue to believe that stepped-
up structural reform is necessary in Japan for its economy to better
its longer-term growth potential. In addition, the government's
measures to solve the Housing Loan Corporation problem have not
evidenced much progress. For these reasons, we remain underweighted
in Japan.
Given these circumstances, we made no significant changes to our
Japanese investment strategy during the February quarter. We took
profits in shares of the Mitsubishi Bank & Trust Company, as we
believe the worst is yet to come in terms of the Jusen (Housing Loan
Corporation) disposal scheme. The Jusen situation can be compared to
the Resolution Trust Corporation in the United States some years
ago, albeit on a significantly larger scale.
<PAGE>
Asian Markets Outside of Japan
After two years of poor performance, most regional equity markets
outside of Japan advanced strongly during the February quarter,
helped by an influx of foreign funds. During the November quarter,
we took advantage of the markets' weakness as an opportunity to
increase our exposure to the smaller markets in Asia. By February
29, 1996, the fund was significantly overweighted in Asia (excluding
Japan) and the fund benefited from having a significant
overweighting in these markets during the February quarter. We
believe Asian markets outside of Japan have the best long-term
growth potential in the world, and we intend to add fundamentally
strong companies when valuation levels become more attractive again.
Our investment holdings in the smaller markets in Asia remained
unchanged during the past three months.
Europe
The combination of declining interest rates and a strong inflow of
mutual fund and pension fund investment plans proved to be quite
positive for European equity markets for the quarter ended February
29, 1996. In local currency terms, the unmanaged benchmark Morgan
Stanley Capital International Europe Index rose 6.1% (+5.1% in US
dollar terms). The fund's European equities sector outperformed the
Index with an estimated gain of 7.02% in US dollar terms.
Performance was helped by our underweighting in the UK market which
rose less than 2% in US dollar terms. German investments also did
well. Adidas AG, Veba AG and Mannesmann AG gained 29%, 19% and 16%,
respectively, for the February quarter. Two of our Dutch investments
also performed particularly well: IHC Caland N.V. was up 30% and
Baan Company N.V. rose 23%. On the other hand, two technology
investments performed quite poorly. Nokia OY AS lost 30% and
Olivetti Group-Ing. declined 16%.
Upcoming elections in Spain, Italy, Germany and possibly in the
United Kingdom could impact the various markets over the near term.
Economic developments, particularly declining interest rates, are
likely to dominate. We remain quite optimistic about the European
equity markets.
United States
The unmanaged Standard & Poor's Composite Index of 500 Stocks rose
5.8% in the February quarter, but industry segment performance again
varied greatly. In general, technology and cyclically sensitive
groups performed quite poorly. Technology issues negatively impacted
the fund's investment results with three exceptions. Microsoft Corp.
gained 13%, Oracle Systems Corp. gained 14%, and Northern Telecom
Ltd. gained 18%. In other industry groups, stock performance was
quite good. Of particular note were Enron Oil & Gas Co., Rohm & Haas
Co., AFLAC, Inc. and Mirage Resorts, Inc. whose shares rose 18%,
16%, 14% and 38%, respectively.
<PAGE>
During the February quarter, we took profits in two consumer staple
companies, McDonald's Corp. and Procter & Gamble Co., in response to
valuation levels and concern about the impact of a stronger dollar
on reported earnings. We eliminated Georgia-Pacific Corp. as a
result of the rapid decline in pulp and paper prices. We initiated
positions in The Bank of New York Company, Inc. and Barnett Banks,
Inc., both of which are well positioned to take advantage of growth
opportunities in certain business niches.
Latin America
After a strong start in 1996, the Latin American equity markets
recently have pulled back, reflecting both political and economic
concerns. In the face of slower growth prospects in their markets,
we eliminated our positions in Coca-Cola Femsa S.A., Empresa La
Moderna, S.A. de C.V. and GT Chilean Growth Fund. We added Madeco
S.A., a Chilean copper and aluminum industrial products and
packaging company with significant operations in Argentina and Peru.
Our remaining Mexican positions, Panamerican Beverages, Inc. and
Grupo Carso, S.A. de C.V., achieved gains of 25.6% and 11.8%,
respectively. Telecommunicacoes Brasileras S.A. (Telebras) PN in
Brazil was also a strong performer, up 9.6% in the February quarter.
On the negative side, Buenos Aires Embotelladora S.A. (BAESA)
announced disappointing results for the February quarter. We believe
this company's problems are longer term in nature and have nearly
eliminated this position.
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 next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Edward F. Korff)
Edward F. Korff
Vice President and Portfolio Manager
March 26, 1996
<PAGE>
PERFORMANCE DATA
About Fund
Performance
Investors are 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).
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.
<PAGE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/95 +15.56% + 9.50%
Five Years Ended 12/31/95 +11.12 + 9.93
Ten Years Ended 12/31/95 +11.24 +10.64
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/95 +14.37% +10.37%
Five Years Ended 12/31/95 +10.01 +10.01
Inception (10/21/88)
through 12/31/95 + 8.59 + 8.59
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 12/31/95 +14.37% +13.37%
Inception (10/21/94)
through 12/31/95 + 6.98 + 6.98
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 12/31/95 +15.32% +9.27%
Inception (10/21/94)
through 12/31/95 + 7.86 +3.10
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
7/2/84--12/31/84 $ 9.15 $ 9.32 -- $0.170 + 3.68%
1985 9.32 12.28 -- 0.340 +36.05
1986 12.28 14.28 $ 1.270 0.300 +30.25
1987 14.28 11.52 3.638 0.372 + 6.54
1988 11.52 11.01 1.275 0.337 +10.04
1989 11.01 11.77 1.492 0.212 +23.53
1990 11.77 10.28 0.188 0.261 - 9.20
1991 10.28 11.67 0.221 0.123 +17.12
1992 11.67 11.27 0.817 0.063 + 4.28
1993 11.27 13.14 0.443 0.371 +24.08
1994 13.14 12.18 0.514 0.007 - 3.25
1995 12.18 13.32 0.584 0.164 +15.56
1/1/96--2/29/96 13.32 13.80 -- -- + 3.60
------- ------
Total $10.442 Total $2.720
Cumulative total return as of 2/29/96: +324.10%**
<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**
<S> <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
1995 11.87 12.82 0.584 0.164 +14.37
1/1/96--2/29/96 12.82 13.25 -- -- + 3.35
------ ------
Total $4.647 Total $0.871
Cumulative total return as of 2/29/96: +87.03%**
<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>
PERFORMANCE DATA (concluded)
<TABLE>
Performance
Summary--
Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $13.08 $11.87 $0.514 -- - 5.23%
1995 11.87 12.82 0.584 $0.164 +14.37
1/1/96--2/29/96 12.82 13.26 -- -- + 3.43
------ ------
Total $1.098 Total $0.164
Cumulative total return as of 2/29/96: +12.11%**
<PAGE>
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<TABLE>
Performance
Summary--
Class D Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $13.39 $12.18 $0.514 $0.003 - 5.09%
1995 12.18 13.29 0.584 0.164 +15.32
1/1/96--2/29/96 13.29 13.76 -- -- + 3.54
------ ------
Total $1.098 Total $0.167
Cumulative total return as of 2/29/96: +13.33%**
<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>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
2/29/96 11/30/95 2/28/95 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* $13.80 $13.87 $11.84 +21.72%(1) +3.90%(1)
ML Global Holdings, Inc. Class B Shares* 13.25 13.38 11.51 +20.42(1) +3.59(1)
ML Global Holdings, Inc. Class C Shares* 13.26 13.38 11.52 +20.41(1) +3.67(1)
ML Global Holdings, Inc. Class D Shares* 13.76 13.84 11.84 +21.38(1) +3.84(1)
ML Global Holdings, Inc. Class A Shares--Total Return* +23.17(2) +5.14(2)
ML Global Holdings, Inc. Class B Shares--Total Return* +21.91(2) +4.87(2)
ML Global Holdings, Inc. Class C Shares--Total Return* +21.89(2) +4.95(2)
ML Global Holdings, Inc. Class D Shares--Total Return* +22.83(2) +5.08(2)
World Stock Index--Total Return** +23.74 +5.36
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
**The Morgan Stanley Capital International World Stock Index is an
unmanaged US dollar-denominated index of world stock markets
compiled by Capital International Perspective S.A. and published in
Morgan-Stanley Capital International Perspective.
(1)Percent change includes reinvestment of $0.584 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.164 per share ordinary
income dividends and $0.584 per share capital gains distributions.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US Dollars)
<CAPTION>
LATIN Percent of
AMERICA Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Beverages & Tobacco 10,000 Buenos Aires Embotelladora S.A.
(BAESA) (ADR)* $ 224,100 $ 166,250 0.0%
Energy 120,000 Yacimientos Petroliferos Fiscales
S.A.--Sponsored (ADR)* 2,350,450 2,325,000 0.6
Multi-Industry 339,000 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 1,396,267 1,688,896 0.4
Total Investments in Argentina 3,970,817 4,180,146 1.0
Brazil Forest Products 397,500 Aracruz Celulose S.A. (ADR)* 3,624,750 2,881,875 0.7
& Paper
Telecommuni- 40,000,000 Telecommunicacoes Brasileiras
cations S.A.--Telebras PN (Preferred) 1,420,105 2,088,370 0.5
Total Investments in Brazil 5,044,855 4,970,245 1.2
<PAGE>
Chile Multi-Industry 40,000 Madeco S.A. (ADR)* 1,076,525 1,160,000 0.3
Total Investments in Chile 1,076,525 1,160,000 0.3
Mexico Beverages 35,000 Panamerican Beverages, Inc.
& Tobacco (Class A) (ADR)* 991,514 1,417,500 0.4
Multi-Industry 350,000 Grupo Carso, S.A. de C.V. 2,446,931 2,207,869 0.5
Total Investments in Mexico 3,438,445 3,625,369 0.9
Total Investments in Latin America 13,530,642 13,935,760 3.4
NORTH
AMERICA
Canada Telecommunications 50,000 Northern Telecom Ltd. 1,474,875 2,375,000 0.6
Total Investments in Canada 1,474,875 2,375,000 0.6
United Banking 11,400 Bank of New York Company, Inc. (The) 592,059 591,375 0.1
States 45,000 Barnett Banks, Inc. 2,756,978 2,812,500 0.7
60,000 UJB Financial Corp. 1,246,915 2,280,000 0.6
------------ ------------ ------
4,595,952 5,683,875 1.4
Broadcasting & 127,500 Time Warner Inc. 4,267,285 5,450,625 1.3
Publishing 100,000 Viacom Inc. (Class A) 3,652,950 3,887,500 1.0
------------ ------------ ------
7,920,235 9,338,125 2.3
Business & 30,000 Microsoft Corp. 1,250,000 2,958,750 0.7
Public Services 75,000 Molten Metal Technology, Inc. 1,557,457 2,681,250 0.7
90,000 Oracle Systems Corp. 956,438 4,680,000 1.2
30,000 Pacificare Health Systems (Class B) 1,012,500 2,820,000 0.7
44,800 United HealthCare Corp. 737,136 2,923,200 0.7
82,000 Value Health Inc. 2,422,670 2,121,750 0.5
------------ ------------ ------
7,936,201 18,184,950 4.5
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<CAPTION>
NORTH AMERICA Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Chemicals 60,000 PPG Industries, Inc. $ 2,314,400 $ 2,782,500 0.7%
States 30,000 Rohm & Haas Co. 1,621,175 2,088,750 0.5
(concluded) ------------ ------------ ------
3,935,575 4,871,250 1.2
Electrical & 250,000 BE Semiconductor Industries 3,483,753 4,093,750 1.0
Electronics
Electrical 90,000 Ultratech Stepper Inc. 1,505,465 2,115,000 0.5
Equipment
Electronics/ 60,000 Applied Materials, Inc. 2,160,563 2,137,500 0.5
Components 160,000 General Instrument Corp. 4,134,277 4,360,000 1.1
50,000 Intel Corp. 751,250 2,937,500 0.7
40,000 Motorola, Inc. 2,163,700 2,170,000 0.5
50,000 Texas Instruments Inc. 2,006,428 2,493,750 0.6
------------ ------------ ------
11,216,218 14,098,750 3.4
Energy Sources 150,000 Enron Oil & Gas Co. 2,824,428 3,750,000 0.9
Food & Household 100,000 Performance Food Group Co. 1,678,096 2,387,500 0.6
Products
Health & Personal 36,900 Merck & Co. 1,331,389 2,444,625 0.6
Care 66,700 Pfizer, Inc. 3,253,890 4,393,863 1.1
------------ ------------ ------
4,585,279 6,838,488 1.7
Industrial--Other 80,000 Varity Corp. 2,572,027 3,020,000 0.7
Insurance 80,000 AFLAC, Inc. 2,343,570 3,710,000 0.9
80,000 Mercury General Corp. 2,462,000 3,480,000 0.9
------------ ------------ ------
4,805,570 7,190,000 1.8
Leisure & Tourism 100,000 Mirage Resorts, Inc. 1,518,650 4,637,500 1.1
50,000 Walt Disney Co. 1,653,250 3,275,000 0.8
------------ ------------ ------
3,171,900 7,912,500 1.9
Machinery 60,000 Harnischfeger Industries, Inc. 2,231,100 2,272,500 0.6
& Equipment
Merchandising 90,000 The Home Depot, Inc. 3,373,925 3,892,500 1.0
Railroads 40,000 CSX Corp. 1,333,075 1,795,000 0.4
20,000 Consolidated Rail Corp. 931,200 1,442,500 0.4
------------ ------------ ------
2,264,275 3,237,500 0.8
<PAGE>
Telecommunications 70,000 AT&T Corp. 4,276,451 4,453,750 1.1
125,000 Airtouch Communications, Inc. 2,976,403 3,875,000 1.0
------------ ------------ ------
7,252,854 8,328,750 2.1
Total Investments in the
United States 75,352,853 107,215,438 26.4
Total Investments in North America 76,827,728 109,590,438 27.0
PACIFIC
BASIN/ASIA
Australia Banking 200,097 National Australia Bank, Ltd. 1,430,366 1,919,072 0.5
Broadcasting 300,256 News Corp., Ltd. (Ordinary) 1,600,183 1,707,150 0.4
& Publishing
Insurance 104,674 Lend Lease Corp. 1,327,152 1,606,237 0.4
Metals 300,000 WMC Ltd. (a) 1,727,089 1,928,077 0.5
Total Investments in Australia 6,084,790 7,160,536 1.8
Hong Kong Multi-Industry 1,512,573 First Pacific Co., Ltd. 1,248,973 2,162,104 0.5
400,000 Hutchison Whampoa Ltd. 1,949,838 2,535,444 0.6
500,000 Swire Pacific 'A' Ltd. 2,453,484 4,365,880 1.1
------------ ------------ ------
5,652,295 9,063,428 2.2
Real Estate 400,000 Sun Hung Kai Properties, Ltd. 2,242,489 3,570,320 0.9
Utilities--Gas 1,200,000 Hong Kong and China Gas Company Ltd. 1,873,089 2,351,754 0.6
Total Investments in Hong Kong 9,767,873 14,985,502 3.7
Indonesia Construction 940,000 Jaya Real Property 2,924,702 3,248,380 0.8
& Housing
<PAGE>
Telecommunications 40,000 P.T. Indonesian Satellite Corp.
(ADR)* 1,256,238 1,495,000 0.4
50,800 P.T. Telekomunikasi Indonesia (ADR)* 939,403 1,593,850 0.4
------------ ------------ ------
2,195,641 3,088,850 0.8
Textiles 577,500 P.T. Indorama Synthetics (Foreign) 1,160,954 2,051,809 0.5
Total Investments in Indonesia 6,281,297 8,389,039 2.1
Japan Automobiles 120,000 Toyota Motor Corp. 2,128,963 2,591,817 0.6
Banking 120,000 The Mitsubishi Bank, Ltd. 2,994,891 2,454,805 0.6
US$ 1,000,000 The Mitsubishi Bank, Ltd., 3%
due 11/30/2002 1,000,000 1,088,800 0.3
100,000 Sanwa Bank, Ltd. 1,844,583 1,836,346 0.5
------------ ------------ ------
5,839,474 5,379,951 1.4
Broadcasting 300,000 Tokyo Broadcasting System 3,736,661 5,052,331 1.2
& Publishing
Cable & Wire 270,000 Sumitomo Electric Industry, Ltd. 2,968,251 3,493,815 0.9
Chemicals 350,000 Asahi Chemical Industry Co. 2,503,914 2,524,263 0.6
250,000 Sumitomo Chemical Co. 1,310,984 1,308,278 0.3
200,000 Toray Industries, Inc. 1,520,350 1,295,909 0.3
------------ ------------ ------
5,335,248 5,128,450 1.2
Construction 40,000 Sho-Bond Construction 1,327,862 1,366,318 0.3
& Housing
Data Processing & 120,000 Canon Inc. 2,096,847 2,203,616 0.5
Reproduction
Electrical & 300,000 Hitachi Ltd. 3,154,652 3,025,690 0.7
Electronics 29,000 Keyence Corp. 2,038,471 3,421,503 0.8
200,000 Matsushita Electric Industrial Co. 2,837,637 3,196,955 0.8
85,000 Murata Manufacturing Co., Ltd. 2,448,383 2,798,287 0.7
150,000 NEC Corporation 1,997,076 1,784,015 0.4
120,000 Omron Corp. 2,151,001 2,648,906 0.7
180,000 Sharp Corp. 2,744,465 2,808,754 0.7
60,000 Tokyo Electron Ltd. 2,199,624 2,409,134 0.6
------------ ------------ ------
19,571,309 22,093,244 5.4
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<CAPTION>
PACIFIC BASIN/
ASIA Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Japan Entertainment/ 65,000 Sony Music Entertainment
(concluded) Game Industry (Japan) Inc. $ 2,980,367 $ 3,228,354 0.8%
Financial Services 200,000 Daiwa Securities Co., Ltd. 2,519,694 2,816,365 0.7
Insurance 250,000 Tokio Marine & Fire Insurance
Co., Ltd. 3,142,441 3,020,932 0.7
Machinery & 200,000 Makino Milling Machine Co., Ltd. 1,422,848 2,055,186 0.5
Engineering 350,000 Mitsubishi Heavy Industries Ltd. 2,575,289 2,833,968 0.7
------------ ------------ ------
3,998,137 4,889,154 1.2
Merchandising 50,000 Aoyama Trading Co. 2,716,597 1,408,183 0.3
60,000 Ito-Yokado Co., Ltd. 2,604,246 3,356,803 0.8
150,000 Marui Co., Ltd. 2,736,736 2,882,969 0.7
------------ ------------ ------
8,057,579 7,647,955 1.8
Metals 700,000 Nippon Steel Co. 2,407,627 2,257,850 0.6
800,000 Sumitomo Metal Industries Co., Ltd. 2,594,374 2,253,092 0.6
------------ ------------ ------
5,002,001 4,510,942 1.2
Real Estate 250,000 Mitsui Fudosan Co., Ltd. 3,097,952 2,925,785 0.7
Telecommunications 250 DDI Corp. 1,832,670 1,833,968 0.5
307 Nippon Telephone & Telegraph
Corp. (Ordinary) 2,553,690 2,336,822 0.6
------------ ------------ ------
4,386,360 4,170,790 1.1
Wholesale & 250,000 Mitsui & Co. 1,780,475 2,124,167 0.5
International
Trade
Total Investments in Japan 77,969,621 82,643,986 20.2
Malaysia Banking 583,333 Commerce Asset--Holding BHD 1,276,855 3,296,701 0.8
Building Materials 300,000 Sungei Way Holdings BHD 1,143,066 1,159,733 0.3
Telecommunications 600,000 Technology Resources Industries BHD 1,818,763 1,872,057 0.5
300,000 Telekom Malaysia BHD 1,491,009 2,578,493 0.6
------------ ------------ ------
3,309,772 4,450,550 1.1
<PAGE>
Total Investments in Malaysia 5,729,693 8,906,984 2.2
New Zealand Telecommunications 400,000 Telecom Corp. of New Zealand Ltd.
(Class C) (ADR)* 1,278,315 1,792,872 0.4
Total Investments in New Zealand 1,278,315 1,792,872 0.4
Singapore Banking 150,000 Overseas Chinese Banking Corp. 1,513,249 2,082,300 0.5
Broadcasting 100,000 Singapore Press Holdings Limited 1,476,852 2,018,557 0.5
& Printing
Construction 200,000 City Development Ltd. 1,181,730 1,629,011 0.4
& Housing
Multi-Industry 150,000 Keppel Corp. Ltd. 1,089,994 1,519,229 0.4
Total Investments in Singapore 5,261,825 7,249,097 1.8
South Korea Banking 91,875 Hanil Bank 1,273,823 1,232,438 0.3
Construction 29,169 Hyundai Engineering and
& Housing Construction Co. 601,548 1,482,127 0.4
Electronics 46,283 LG Electronics Co. 1,725,155 1,212,836 0.3
Steel 38,000 Pohang Iron & Steel Co., Ltd. (ADR) * 910,700 950,000 0.2
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,646,683 0.4
Total Investments in South Korea 5,608,341 6,524,084 1.6
Thailand Banking 50,000 Bangkok Bank Public Company Ltd. 532,863 650,794 0.2
Building Materials 20,000 Siam Cement Group 638,270 1,041,270 0.3
Telecommunications 98,000 Advanced Information Services Inc. 1,098,643 1,827,778 0.5
600,000 Total Access Communication 3,787,500 5,190,000 1.3
------------ ------------ ------
4,886,143 7,017,778 1.8
Total Investments in Thailand 6,057,276 8,709,842 2.3
<PAGE>
Total Investments in the Pacific
Basin/Asia 124,039,031 146,361,942 36.1
WESTERN
EUROPE
Finland Forest Products 40,000 Kymmene OY 1,152,579 1,119,239 0.3
Telecommunications 76,400 Nokia OY AS (Preferred) 2,163,900 2,659,558 0.6
Total Investments in Finland 3,316,479 3,778,797 0.9
France Banking 35,000 Credit Local de France S.A. 2,781,428 2,779,861 0.6
Cosmetics 33,000 Christian Dior S.A. 2,920,305 3,967,857 1.0
Energy 42,785 Total S.A. 'B' 2,673,402 2,824,319 0.7
Pharmaceuticals 15,000 Roussel-Uclaf S.A. 2,710,632 3,184,524 0.8
Total Investments in France 11,085,767 12,756,561 3.1
Germany Building 7,500 Friedrich Grohe AG (Preferred) 2,065,030 1,800,408 0.4
Materials 17,000 Tarkett AG 431,026 372,254 0.1
------------ ------------ ------
2,496,056 2,172,662 0.5
Chemicals 50,000 SKW Trostberg AG 1,043,212 1,060,864 0.3
Machinery & 13,000 Jungheinrich AG (Preferred) 2,949,306 2,210,133 0.5
Equipment
Multi-Industry 10,000 Mannesmann AG 3,229,897 3,573,614 0.9
105,000 Veba AG 4,095,992 4,941,176 1.2
------------ ------------ ------
7,325,889 8,514,790 2.1
Recreation 60,000 Adidas AG 3,119,053 3,839,510 1.0
Total Investments in Germany 16,933,516 17,797,959 4.4
<PAGE>
Italy Telecommunications 4,000,000 Olivetti Group-Ing. 2,812,039 2,376,467 0.6
1,500,000 Telecom Italia Mobile S.p.A.
(Savings) 1,528,959 1,678,187 0.4
------------ ------------ ------
4,340,998 4,054,654 1.0
Total Investments in Italy 4,340,998 4,054,654 1.0
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US Dollars)
<CAPTION>
WESTERN
EUROPE Percent of
(concluded) Industries Shares Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Netherlands Business & 70,000 Baan Company N.V. $ 2,254,885 $ 3,913,228 1.0%
Public Services
Construction 225,000 Koninklijke Boskalis Westminster
& Housing N.V. 3,505,056 3,595,734 0.9
Electrical & 90,000 Philips N.V. 3,101,336 3,746,126 0.9
Electronics
Energy Equipment 50,000 IHC Caland N.V. 1,138,116 1,898,888 0.5
& Services
Total Investments in the
Netherlands 9,999,393 13,153,976 3.3
Norway Automobiles 210,000 Sensonor A/S 1,572,531 1,740,694 0.4
Total Investments in Norway 1,572,531 1,740,694 0.4
Spain Banking 100,000 Banco Bilbao Vizcaya S.A. 3,878,650 3,897,154 1.0
Energy 50,000 Repsol S.A. 1,662,606 1,827,296 0.4
Forest Products 106,500 Empresa Nacional de Celulosas S.A. 2,586,070 1,481,080 0.4
& Paper
Total Investments in Spain 8,127,326 7,205,530 1.8
Sweden Automobiles 40,000 Autoliv AB 2,142,137 1,913,876 0.5
<PAGE>
Forest Products/ 60,000 Mo Och Domsjo AB 'B' Free 2,957,303 2,959,693 0.7
Paper & Packaging
Health & 60,000 Astra AB 'B' Free 1,096,951 2,746,382 0.7
Personal Care
Multi-Industry 90,000 Kinnevik AB 'B' Free 2,983,155 3,013,021 0.7
Total Investments in Sweden 9,179,546 10,632,972 2.6
Switzerland Health & 871 Roche Holdings AG 4,203,474 6,768,151 1.7
Personal Care
Total Investments in Switzerland 4,203,474 6,768,151 1.7
United Banking 240,574 National Westminster Bank PLC 1,894,259 2,543,241 0.6
Kingdom 308,117 The Royal Bank of Scotland Group PLC 2,333,321 2,608,453 0.7
------------ ------------ ------
4,227,580 5,151,694 1.3
Broadcasting 312,500 Carlton Communications PLC
& Publishing (Ordinary) 1,292,970 2,001,065 0.5
Business & 320,000 Chubb Security PLC 1,625,989 1,793,107 0.4
Public Services
Electronics 1,250,000 Astec (BSR) PLC 1,943,769 2,277,362 0.6
Energy 466,773 British Petroleum Co. PLC 2,357,083 3,850,366 0.9
Energy Sources 500,000 Enterprise Oil PLC 2,939,749 2,931,865 0.7
Merchandising 700,000 House of Fraser PLC 1,899,679 1,886,192 0.5
500,000 Next PLC 1,731,357 3,632,297 0.9
------------ ------------ ------
3,631,036 5,518,489 1.4
Multi-Industry 287,980 Siebe PLC 2,503,289 3,562,451 0.9
Total Investments in the
United Kingdom 20,521,465 27,086,399 6.7
Total Investments in
Western Europe 89,280,495 104,975,693 25.9
SHORT-TERM
SECURITIES Face Amount Issue
<PAGE>
United Commercial US$17,014,000 Associates Corp. of North America,
States Paper** 5.40% due 3/01/1996 17,014,000 17,014,000 4.2
US Government 6,000,000 Federal Farm Credit Bank, 5.28%
& Agency due 3/06/1996 5,995,600 5,995,600 1.5
Obligations** 11,000,000 Federal National Mortgage
Association, 5.16% due 3/22/1996 10,966,890 10,966,890 2.7
Total Investments in Short-Term
Securities 33,976,490 33,976,490 8.4
Total Investments $337,654,386 408,840,323 100.8
============
Liabilities in Excess of Other Assets (3,333,245) (0.8)
------------ ------
Net Assets $405,507,078 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $354,923,329 and
25,715,115 shares outstanding $ 13.80
============
Class B--Based on net assets of $45,878,753 and
3,461,802 shares outstanding $ 13.25
============
Class C--Based on net assets of $690,255 and
52,063 shares outstanding $ 13.26
============
Class D--Based on net assets of $4,014,741 and
291,834 shares outstanding $ 13.76
============
<FN>
*American Depositary Receipts (ADR).
**Commercial Paper and certain US Government & Agency Obligations
are traded on a discount basis; the interest rates shown are the
discount rates paid at the time of purchase by the Company.
(a)Formerly Western Mining Corp.
</TABLE>
EQUITY PORTFOLIO CHANGES
For the Quarter Ended February 29, 1996
<PAGE>
Additions
Applied Materials, Inc.
BE Semiconductor Industries
Banco Bilbao Vizcaya S.A.
Bank of New York Company, Inc. (The)
Barnett Banks, Inc.
*CoreStates Financial Corp.
Enterprise Oil PLC
Harnischfeger Industries, Inc.
Koninklijke Boskalis Westminister N.V.
Madeco S.A. (ADR)
Nippon Steel Co.
Olivetti Group-Ing.
Roussel-Uclaf S.A.
SKW Trostberg AG
Tokyo Electron Ltd.
Deletions
BTR PLC
Banco Popular Espanol S.A.
Coca-Cola Femsa S.A. (ADR)
*CoreStates Financial Corp.
Empresa La Moderna, S.A. de C.V. (ADR)
GT Chilean Growth Fund (ADR)
Georgia-Pacific Corp.
Gucci Group N.V.
Hyundai Engineering and Construction Co.
(New Shares)
LG Electronics Co. (New Shares)
McDonald's Corp.
Michelin S.A.
Mitsubishi Trust & Banking Corp.
NKK Corp.
Nera A/S
OMV Aktiengesellschaft
Procter & Gamble Co.
Yamaichi Securities Company Ltd.
[FN]
*Added and deleted in the same quarter.
<PAGE>
PORTFOLIO INFORMATION
Worldwide
Investments
As of 2/29/96
Percent of
Ten Largest Industries Net Assets
Telecommunications 10.0%
Banking 8.0
Multi-Industry 7.5
Electrical & Electronics 7.3
Business & Public Services 5.9
Broadcasting & Publishing 4.4
Merchandising 4.2
Electronics/Components 3.4
Insurance 2.9
Construction & Housing 2.8
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Roche Holdings AG Switzerland 1.7%
Time Warner Inc. United States 1.3
Total Access Communication Thailand 1.3
Tokyo Broadcasting System Japan 1.2
Veba AG Germany 1.2
Oracle Systems Corp. United States 1.2
Mirage Resorts, Inc. United States 1.1
AT&T Corp. United States 1.1
Pfizer, Inc. United States 1.1
Swire Pacific 'A' Ltd. Hong Kong 1.1
