MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Annual Report
November 30, 1995
<PAGE>
Officers and Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Philip L. Kirstein, Senior Vice President
Donald C. Burke, Vice President
Edward F. Korff, Vice President and Portfolio
Manager
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, NY 11245
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
<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.
Statements and other information herein are as dated and are subject
to change.
Merrill Lynch
Global Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL HOLDINGS, INC.
Worldwide
Investments
As of 11/30/95
Percent of
Ten Largest Industries Net Assets
Telecommunications 9.0%
Electrical & Electronics 7.6
Multi-Industry 7.1
Banking 7.1
Broadcasting & Publishing 5.2
Health & Personal Care 4.5
Merchandising 4.4
Business & Public Services 3.6
Insurance 3.3
Energy 3.2
<PAGE>
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Roche Holdings AG Switzerland 1.8%
Time Warner Inc. United States 1.6
Tokyo Broadcasting System Japan 1.3
AT&T Corp. United States 1.2
Mirage Resorts, Inc. United States 1.1
Nokia OY AS (Preferred) Finland 1.1
General Instrument Corp. United States 1.1
AFLAC, Inc. United States 1.1
Oracle Systems Corp. United States 1.1
The Home Depot, Inc. United States 1.1
Important Tax
Information
(unaudited)
The following information summarizes all per share distributions
paid by Merrill Lynch Global Holdings, Inc. (the "Fund") during its
taxable year ended November 30, 1995:
<TABLE>
<CAPTION>
Qualifying Domestic Foreign Total Foreign Taxes Long-Term
Record Payable Domestic Non-Qualifying Source Ordinary Paid or Capital
Date Date Ordinary Income Ordinary Income Income Income Withheld Gains
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A Shares 12/13/94 12/21/94 $0.006666 $0.000122 $0.000079 $0.006867 $0.014901 $0.514407
Class B Shares 12/13/94 12/21/94 $ -- $ -- $ -- $ -- $ -- $0.514407
Class C Shares 12/13/94 12/21/94 $ -- $ -- $ -- $ -- $ -- $0.514407
Class D Shares 12/13/94 12/21/94 $0.002700 $0.000049 $0.000032 $0.002781 $0.014901 $0.514407
</TABLE>
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.
<PAGE>
DEAR SHAREHOLDER
In the August quarterly report to shareholders, we cited the
slowdown in the overall global economy and increasing political
turmoil around the world as the primary factors which could impact
equity markets over the near term. The current economic slowdown has
resulted in more moderate earnings growth for many companies and
outright disappointing results for an increasing number of others.
In response, stock markets as a whole were noticeably more volatile
over the period, and sector performance within markets was widely
disparate.
Political events also contributed to higher levels of volatility in
many of the world's markets. Scandals in Korea, Mexico and Brazil
significantly affected those markets. Elsewhere, pre-election polls
in Austria and post-election budget proposals in France took a toll.
The US bond, currency and equity markets all suffered briefly as a
result of the balanced budget impasse. Political uncertainties are
particularly worrisome to investors during periods of economic
transition.
On a more positive note, the news on inflation continued to be
uniformly good. Price pressures moderated during the November
quarter in every economic region. Slower economic growth and low
inflation rates have combined to allow monetary authorities around
the world to lower interest rates. Although some would argue that
certain reductions were too late in coming, the important point is
that the process has begun. Further interest rate cuts are
anticipated in early 1996, which ultimately should lead to a re-
acceleration of real economic growth around the globe. We remain
optimistic about the overall investment outlook. Near term,
continued volatility is anticipated as we work through this period
of economic and political uncertainty, but the longer-term opportunity
is clear. In general, international equity markets appear to be more
attractively valued than the US stock market.
Investment Environment
Europe
During the quarter ended November 30, 1995, European stock markets
were primarily driven by the lowering of economic growth
expectations and the consequent reduction in estimates of corporate
earnings. It now appears that gross domestic product growth in 1996
will be in the 2.25% area compared to earlier estimates of 2.80% and
1995 growth is expected to be in the area of 2.90%. The current
forecast, while not robust, is in line with longer-term trends and
did facilitate the somewhat belated reduction of interest rates by
the German Bundesbank.
<PAGE>
Over the intermediate term, we will continue to closely monitor the
various governments' efforts to reduce budget deficits in order to
comply with Maastricht Treaty guidelines. France, in particular, is
having difficulty enacting appropriate measures. This is important
because of potential consequences for the progress toward the
Economic and Monetary Union in 1996.
In US dollar terms, the unmanaged Morgan Stanley Capital
International (MSCI) European Index total return was +3.26% over the
November quarter. The Swiss and UK markets performed well. Over the
November quarter, the Fund's performance was positively impacted by
our positions in Gucci Group N.V. (+57%), Baan Company N.V. (+23%),
Roche Holdings AG (+10%) and the UK retailers, Next PLC (+16%) and
House of Fraser PLC (+21%). On the other hand, performance was hurt
by weakness in our cyclical positions, particularly paper companies:
Empresa Nacional de Celuslosas S.A. in Spain and Mo Och Domsjo AB
'B' Free in Sweden. Two technology holdings, Nokia OY AS and Philips
N.V., also performed poorly.
Pacific Rim
The Japanese government's failure to fix the structural problems in
its economy, including the bad debt burden of the financial sector
and the lack of aggressive deregulation, continues to hinder
economic recovery. During the November quarter, the health of
Japan's financial system was once again the main focus of investors
as a result of the collapse of several smaller institutions and the
revelation of huge losses at Daiwa Bank.
Despite positive factors, such as the reduction in the official
discount rate to the historic low of 0.5%, the weakening of the yen
to a level of 100 yen per dollar versus 82 in the spring, and the
announcement of a 14 trillion yen fiscal stimulus package, the
Japanese economy remained at a standstill and the stock market
languished. At this juncture, a full recovery in the economy and the
stock market appear to depend on how successfully the authorities
are able to address the bad debt situation, particularly bad loans
held by the housing loan companies. In mid-November, in the wake of
growing international concerns over the integrity of Japan's
financial system, the Ministry of Finance released its draft report
on the liquidation of the housing loan companies. If the government
can formulate a concrete solution to the problem by early 1996 as it
has promised, the stock market could react favorably, especially
given the improved corporate earnings outlook and the Bank of
Japan's ongoing easy monetary policy. Few portfolio changes were
made during the November quarter. Our focus continues to be on
export-oriented companies which are beneficiaries of a weaker yen.
<PAGE>
With the exception of Hong Kong, most smaller Asian stock markets
remained weak during the November quarter. Deteriorating current
account balances, particularly in Malaysia and Thailand, were the
primary causes of investor concerns. However, since we have positive
long-term expectations for these smaller markets, we used the market
setbacks as buying opportunities. As a result, we raised our
exposure to the smaller Asian stock markets to 14.5% of net assets
by November quarter-end, up from 11.4% at August quarter-end. Our
overweighting in well-established blue chip names throughout the
region contributed favorably to Fund performance, as such stocks
generally outperformed smaller issues in this uncertain period.
The Americas
The US stock market provided perhaps the best example of disparate
returns by market segment within the context of a strong overall
market. As domestic investors became increasingly concerned about
growth, economically sensitive market segments, including most
cyclical industry groups and many areas of technology, were heavily
sold. Fortunately, we had already sold many of our cyclical stocks,
but performance was hurt by certain technology issues: specifically,
Motorola, Inc. and Texas Instruments Inc. As had been anticipated,
investors sought out areas of greater earnings visibility: consumer
non-durables, healthcare and some financial issues. Our holdings in
such companies as Merck & Co. N.V. (+24%), Pfizer, Inc. (+20%),
Procter & Gamble Co. (+24%), PacifiCare Health Systems (+53%),
United HealthCare Corp. (+48%), McDonald's Corp. (+22%) and Mercury
General Corp. (+26%) benefited from this shift in focus.
In Latin America, the Argentine and Brazilian stock markets
performed well during the November quarter, but Chile and Mexico
performed poorly. We believe the lowest level of economic activity
has been passed in Mexico, and remain optimistic about the longer-
term economic and investment prospects in all of Latin America.
Portfolio Activity
Trading activity was again substantial in the November quarter. This
continues to be a function of the restructuring process that we have
undertaken. The goals of this process remain the same: to maintain
diversification, reduce the number of positions and add more focus
to our investments by concentrating on secular economic trends that
are developing, such as greater infrastructure expenditures and
rapidly increasing disposable consumer income in emerging markets.
Simultaneously, we have improved the overall qualitative aspects of
the Fund. The average holding today has a better balance sheet and
operating prospects than early in the fiscal year. We remain company-
oriented, searching for regional or worldwide leaders in businesses
aided by strong secular characteristics.
<PAGE>
Fiscal Year in Review
The total return in US dollars for the unmanaged MSCI World Index
was +18.42% for the 12 months ended November 30, 1995. Excluding the
US component, the total return was +7.9%, highlighting the fact that
returns in most international markets were rather lackluster. In
this environment, total returns for Merrill Lynch Global Holdings,
Inc. Class A, Class B, Class C and Class D Shares were +12.92%,
+11.78%, +11.69% and +12.73%, respectively. Fund performance was
negatively impacted late in the fiscal year by abnormally high cash
positions resulting from the aforementioned restructuring process.
The fund's performance was also negatively impacted by the
underperformance of cyclical investments during the November quarter
and, as discussed, by US technology investments.
As the fund begins a new fiscal year, it is appropriate to
reemphasize the potential benefits of global investing after a 12-
month period when the return of the US stock market so significantly
exceeded that of any other sizable market. International markets
comprise over 60% of available equity, and to ignore them is to
ignore significant investment opportunity. Moreover, based on past
experience, over periods of five or ten years, international markets
have provided incremental returns compared to the US stock markets.
We believe that at present valuation levels, this could once again
be the case.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Edward F. Korff)
Edward F. Korff
Vice President and Portfolio Manager
January 12, 1996
PERFORMANCE DATA
<PAGE>
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 all of the fund's shares are presented in the
"Total Return Based on a $10,000 Investment" graphs and the
"Performance Summary" and "Recent Performance Results" tables below
and on pages 5--7. Data for Class A and Class B Shares are presented
in the "Average Annual Total Return" tables on page 5. Data for
Class C and Class D Shares are also presented in the "Aggregate
Total Return" tables on page 5.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for all of the fund's
shares for the 12-month and 3-month periods ended November 30, 1995.
All data in this table assume imposition of the actual total
expenses incurred by each class of shares during the relevant
period.
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
<PAGE>
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 Internatonal World Index. Beginning and ending
values are:
11/85 11/95
ML Global Holdings, Inc.++--
Class A Shares* $ 9,475 $28,177
Morgan Stanley Capital International
World Index++++ $10,000 $34,837
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 Internatonal World Index. Beginning and ending
values are:
10/21/88** 11/95
ML Global Holdings, Inc.++--
Class B Shares* $10,000 $17,835
Morgan Stanley Capital International
World Index++++ $10,000 $17,094
A line graph depicting the growth of an investment in the Fund's
Class C and Class D Shares compared to growth of an investment in
the Morgan Stanley Capital Internatonal World Index. Beginning and
ending values are:
10/21/94** 11/95
ML Global Holdings, Inc.++--
Class C Shares* $10,000 $10,683
ML Global Holdings, Inc.++--
Class D Shares* $ 9,475 $10,219
Morgan Stanley Capital International
World Index++++ $10,000 $11,326
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++ML Global Holdings, Inc. invests in an internationally diversified
portfolio of securities.
++++This unmanages market capitalization-weighted Index is comprised
of a representaive sampling of large-, medium-, and small-
capitalization companies in 22 countries, including the United
States.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/95 + 7.98% + 2.31%
Five Years Ended 9/30/95 +11.29 +10.10
Ten Years Ended 9/30/95 +12.66 +12.05
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/95 + 6.92% + 2.92%
Five Years Ended 9/30/95 +10.14 +10.14
Inception (10/21/88) through 9/30/95 + 8.62 + 8.62
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
Aggregate
Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94) through 9/30/95 +6.35% +5.35%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/21/94) through 9/30/95 +7.23% +1.60%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Performance
Summary--
Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
7/2/84-12/31/84 $ 9.15 $ 9.32 -- $0.170 + 3.68%
1985 9.32 12.28 -- 0.340 +36.05
1986 12.28 14.28 $1.270 0.300 +30.25
1987 14.28 11.52 3.638 0.372 + 6.54
1988 11.52 11.01 1.275 0.337 +10.04
1989 11.01 11.77 1.492 0.212 +23.53
1990 11.77 10.28 0.188 0.261 - 9.20
1991 10.28 11.67 0.221 0.123 +17.12
1992 11.67 11.27 0.817 0.063 + 4.28
1993 11.27 13.14 0.443 0.371 +24.08
1994 13.14 12.18 0.514 0.007 - 3.25
1/1/95-11/30/95 12.18 13.87 -- -- +13.88
------ ------
Total $9.858 Total $2.556
<PAGE>
Cumulative total return as of 11/30/95: +303.36%**
<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**
<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
1/1/95-11/30/95 11.87 13.38 -- -- +12.72
------ ------
Total $4.063 Total $0.707
Cumulative total return as of 11/30/95: +78.35%**
<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 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%
1/1/95-11/30/95 11.87 13.38 -- -- +12.72
------
Total $0.514
<PAGE>
Cumulative total return as of 11/30/95: +6.83%**
<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%
1/1/95-11/30/95 12.18 13.84 -- -- +13.63
------ ------
Total $0.514 Total $0.003
Cumulative total return as of 11/30/95: +7.85%**
<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
11/30/95 8/31/95 11/30/94 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* $13.87 $13.61 $12.82 +12.86%(1) +1.91%
ML Global Holdings, Inc. Class B Shares* 13.38 13.16 12.50 +11.78(1) +1.67
ML Global Holdings, Inc. Class C Shares* 13.38 13.16 12.51 +11.69(1) +1.67
ML Global Holdings, Inc. Class D Shares* 13.84 13.59 12.81 +12.71(1) +1.84
ML Global Holdings, Inc. Class A Shares--Total Return* +12.92(2) +1.91
ML Global Holdings, Inc. Class B Shares--Total Return* +11.78(1) +1.67
ML Global Holdings, Inc. Class C Shares--Total Return* +11.69(1) +1.67
ML Global Holdings, Inc. Class D Shares--Total Return* +12.73(3) +1.84
World Stock Index--Total Return** +18.42 +4.74
<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 $0.514 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.007 per share ordinary
income dividends and $0.514 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.003 per share ordinary
income dividends and $0.514 per share capital gains distributions.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US Dollars)
<CAPTION>
LATIN Value Percent of
AMERICA Industries Shares Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Beverages 70,000 Buenos Aires Embotelladora S.A.
& Tobacco (BAESA) (ADR)* $ 1,948,894 $ 1,776,250 0.5%
Energy 120,000 Yacimientos Petroliferos Fiscales
S.A.--Sponsored (ADR)* 2,350,450 2,340,000 0.6
Multi-Industry 300,000 ++Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 1,396,267 1,455,728 0.4
Total Investments in Argentina 5,695,611 5,571,978 1.5
<PAGE>
Brazil Forest Products 400,000 Aracruz Celulose S.A. (ADR)* 3,647,250 3,600,000 1.0
& Paper
Telecommuni- 40,000,000 Telecommunicacoes Brasileiras S.A.
cations --Telebras PN (Preferred) 1,420,105 1,971,014 0.5
Total Investments in Brazil 5,067,355 5,571,014 1.5
Chile Multi-Industry 26,667 GT Chilean Growth Fund (ADR)* 910,012 1,020,013 0.3
Total Investments in Chile 910,012 1,020,013 0.3
Mexico Beverages & 45,000 Coca-Cola Femsa S.A. (ADR)* 995,494 922,500 0.2
Tobacco 55,000 ++Empresa La Moderna, S.A.
de C.V. (ADR)* 1,390,798 811,250 0.2
35,000 Panamerican Beverages, Inc.
(Class A) (ADR)* 991,514 1,128,750 0.3
------------ ------------ ------
3,377,806 2,862,500 0.7
Multi-Industry 350,000 ++Grupo Carso, S.A. de C.V. 2,446,931 1,948,069 0.5
Total Investments in Mexico 5,824,737 4,810,569 1.2
Total Investments in Latin America 17,497,715 16,973,574 4.5
NORTH
AMERICA
Canada Telecommunications 50,000 Northern Telecom Ltd. 1,474,875 2,018,750 0.5
Total Investments in Canada 1,474,875 2,018,750 0.5
United Banking 60,000 UJB Financial Corp. 1,246,915 2,010,000 0.5
States
Broadcasting & 150,000 Time Warner Inc. 4,851,407 6,000,000 1.6
Publishing 80,000 ++Viacom Inc. (Class A) 2,832,749 3,850,000 1.0
------------ ------------ ------
7,684,156 9,850,000 2.6
Business & 36,000 ++Microsoft Corp. 1,503,000 3,132,000 0.8
Public Services 75,000 ++Molten Metal Technology, Inc. 1,557,457 2,756,250 0.7
90,000 ++Oracle Systems Corp. 956,438 4,072,500 1.1
------------ ------------ ------
4,016,895 9,960,750 2.6
<PAGE>
Chemicals 80,000 PPG Industries, Inc. 3,106,850 3,630,000 1.0
30,000 Rohm & Haas Co. 1,621,175 1,807,500 0.5
------------ ------------ ------
4,728,025 5,437,500 1.5
Electrical 70,000 ++Ultratech Stepper Inc. 734,425 2,607,500 0.7
Equipment
Electronics 160,000 ++General Instrument Corp. 4,134,277 4,100,000 1.1
/Components 50,000 Intel Corp. 751,250 3,037,500 0.8
25,000 Motorola, Inc. 1,305,925 1,531,250 0.4
30,000 Texas Instruments Inc. 987,728 1,736,250 0.5
------------ ------------ ------
7,179,180 10,405,000 2.8
Energy Sources 100,000 Enron Oil & Gas Co. 1,736,928 2,100,000 0.6
Food & Household 85,000 ++Performance Food Group Co. 1,323,721 2,018,750 0.5
Products
Forest Products/ 25,000 Georgia-Pacific Corp. 1,820,250 1,943,750 0.5
Paper & Packaging
Health & 36,900 Merck & Co. 1,331,389 2,283,187 0.6
Personal Care 66,700 Pfizer, Inc. 3,253,890 3,868,600 1.0
20,000 Procter & Gamble Co. 1,341,200 1,727,500 0.5
------------ ------------ ------
5,926,479 7,879,287 2.1
Health Care 30,000 ++PacifiCare Health Systems (Class B) 1,012,500 2,587,500 0.7
Services 44,800 United HealthCare Corp. 737,136 2,816,800 0.8
80,000 ++Value Health Inc. 2,374,800 2,010,000 0.5
------------ ------------ ------
4,124,436 7,414,300 2.0
Industrial--Other 80,000 ++Varity Corp. 2,572,027 3,100,000 0.8
Insurance 100,000 AFLAC, Inc. 2,812,130 4,075,000 1.1
80,000 Mercury General Corp. 2,462,000 3,780,000 1.0
------------ ------------ ------
5,274,130 7,855,000 2.1
Leisure & Tourism 80,000 McDonald's Corp. 1,931,150 3,570,000 1.0
125,000 ++Mirage Resorts, Inc. 1,927,525 4,234,375 1.1
50,000 Walt Disney Co. 1,653,250 3,006,250 0.8
------------ ------------ ------
5,511,925 10,810,625 2.9
<PAGE>
Merchandising 90,000 The Home Depot, Inc. 2,903,325 3,993,750 1.1
Railroads 30,000 CSX Corp. 1,993,665 2,628,750 0.7
20,000 Consolidated Rail Corp. 931,200 1,397,500 0.4
------------ ------------ ------
2,924,865 4,026,250 1.1
Telecommunications 70,000 AT&T Corp. 4,276,451 4,620,000 1.2
105,000 ++Airtouch Communications, Inc. 2,420,203 3,058,125 0.8
------------ ------------ ------
6,696,654 7,678,125 2.0
Total Investments in the
United States 66,404,336 99,090,587 26.4
Total Investments in North America 67,879,211 101,109,337 26.9
PACIFIC
BASIN
Australia Banking 193,102 National Australia Bank, Ltd. 1,370,290 1,681,674 0.5
Broadcasting & 300,256 News Corp., Ltd. (Ordinary) 1,600,183 1,572,473 0.4
Publishing
Insurance 104,674 Lend Lease Corp. 1,327,152 1,447,343 0.4
Metals 300,000 Western Mining Corp. 1,727,089 2,009,536 0.5
Total Investments in Australia 6,024,714 6,711,026 1.8
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<CAPTION>
PACIFIC
BASIN Value Percent of
(continued) Industries Shares Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Hong Kong Multi-Industry 1,512,573 First Pacific Co., Ltd. $ 1,248,973 $ 1,642,741 0.4%
400,000 Hutchison Whampoa Ltd. 1,949,838 2,260,033 0.6
500,000 Swire Pacific 'A' Ltd. 2,453,484 3,781,806 1.0
------------ ------------ ------
5,652,295 7,684,580 2.0
<PAGE>
Real Estate 400,000 Sun Hung Kai Properties, Ltd. 2,242,489 3,219,384 0.9
Utilities--Gas 1,200,000 Hong Kong and China Gas Company Ltd. 1,873,089 1,962,660 0.5
Total Investments in Hong Kong 9,767,873 12,866,624 3.4
Indonesia Construction & 940,000 Jaya Real Property 2,924,702 2,305,738 0.6
Housing
Telecommunications 40,000 P.T. Indonesian Satellite Corp.
(ADR)* 1,256,238 1,370,000 0.4
50,800 ++P.T. Telekomunikasi (ADR)* 939,403 1,066,800 0.3
------------ ------------ ------
2,195,641 2,436,800 0.7
Textiles 577,500 P.T. Indorama Synthetics (Foreign) 1,160,954 1,770,696 0.5
Total Investments in Indonesia 6,281,297 6,513,234 1.8
Japan Automobiles 120,000 Toyota Motor Corp. 2,128,963 2,374,016 0.6
Banking 100,000 The Mitsubishi Bank, Ltd. 2,554,993 2,185,039 0.6
US$ 1,000,000 The Mitsubishi Bank, Ltd., 3%
due 11/30/2002 1,000,000 1,098,800 0.3
70,000 Sanwa Bank, Ltd. 1,267,793 1,357,283 0.4
------------ ------------ ------
4,822,786 4,641,122 1.3
Broadcasting & 300,000 Tokyo Broadcasting System 3,736,661 5,019,685 1.3
Publishing
Chemicals 300,000 Asahi Chemical Industry Co. 2,135,530 2,244,094 0.6
250,000 Sumitomo Chemical Co. 1,310,984 1,245,079 0.3
200,000 Toray Industries, Inc. 1,520,350 1,303,150 0.4
------------ ------------ ------
4,966,864 4,792,323 1.3
Construction & 30,500 Sho-Bond Construction 998,930 996,654 0.3
Housing
Data Processing & 100,000 Canon Inc. 1,715,881 1,761,811 0.5
Reproduction
Electrical & 300,000 Hitachi Ltd. 3,154,652 3,041,339 0.8
Electronics 29,000 Keyence Corp. 2,038,471 3,567,913 1.0
200,000 Matsushita Electric Industrial Co. 2,837,637 2,972,441 0.8
85,000 Murata Manufacturing Co., Ltd. 2,448,383 3,053,642 0.8
150,000 NEC Corporation 1,997,076 1,919,291 0.5
120,000 Omron Corp. 2,151,001 2,681,102 0.7
180,000 Sharp Corp. 2,744,465 2,551,181 0.7
65,000 Sony Music Entertainment (Japan) Inc. 2,980,367 2,910,925 0.8
270,000 Sumitomo Electric Industry, Ltd. 2,968,251 3,162,402 0.8
------------ ------------ ------
23,320,303 25,860,236 6.9
<PAGE>
Financial 200,000 Daiwa Securities Co., Ltd. 2,519,694 2,775,591 0.7
Services 200,000 Mitsubishi Trust & Banking Corp. 2,659,557 3,070,866 0.8
50,000 Yamaichi Securities Company Ltd. 474,411 316,929 0.1
------------ ------------ ------
5,653,662 6,163,386 1.6
Insurance 250,000 Tokio Marine & Fire Insurance
Co., Ltd. 3,142,441 2,854,331 0.8
Machinery & 200,000 ++Makino Milling Machine Co., Ltd. 1,422,848 1,692,913 0.5
Engineering 350,000 Mitsubishi Heavy Industries Ltd. 2,575,289 2,793,799 0.7
------------ ------------ ------
3,998,137 4,486,712 1.2
Merchandising 40,000 Aoyama Trading Co. 2,416,854 1,153,543 0.3
60,000 Ito-Yokado Co., Ltd. 2,604,246 3,318,898 0.9
140,000 Marui Co., Ltd. 2,534,838 2,618,110 0.7
------------ ------------ ------
7,555,938 7,090,551 1.9
Metals 1,000,000 ++NKK Corp. 2,741,551 2,755,905 0.7
800,000 ++Sumitomo Metal Industries Co., Ltd. 2,594,374 2,433,071 0.6
------------ ------------ ------
5,335,925 5,188,976 1.3
Real Estate 250,000 Mitsui Fudosan Co., Ltd. 3,097,952 3,100,394 0.8
Telecommunications 150 DDI Corp. 1,100,771 1,207,677 0.3
Utilities-- 357 Nippon Telephone & Telegragh Corp.
Telecommunications (Ordinary) 2,988,070 2,919,951 0.8
Wholesale & 250,000 Mitsui & Co. 1,780,475 2,121,063 0.6
International
Trade
Total Investments in Japan 76,343,759 80,578,888 21.5
Malaysia Banking 583,333 Commerce Asset--Holding BHD 1,276,855 2,828,699 0.8
Building Materials 300,000 Sungei Way Holdings BHD 1,143,066 887,049 0.2
Telecommunications 600,000 ++Technology Resources Industries BHD 1,818,763 1,679,480 0.4
300,000 Telekom Malaysia BHD 1,491,009 2,235,364 0.6
------------ ------------ ------
3,309,772 3,914,844 1.0
<PAGE>
Total Investments in Malaysia 5,729,693 7,630,592 2.0
New Zealand Telecommunications 400,000 Telecom Corp. of New Zealand Ltd.
(Class C) (ADR)* 1,278,315 1,672,241 0.4
Total Investments in New Zealand 1,278,315 1,672,241 0.4
Singapore Banking 150,000 Overseas Chinese Banking Corp. 1,513,249 1,797,872 0.5
Broadcasting 100,000 Singapore Press Holdings Limited 1,476,852 1,581,560 0.4
& Publishing
Construction & 200,000 City Development Ltd. 1,181,730 1,375,886 0.4
Housing
Multi-Industry 150,000 Keppel Corp. Ltd. 1,089,994 1,234,043 0.3
Total Investments in Singapore 5,261,825 5,989,361 1.6
South Korea Banking 91,875 Hanil Bank 1,273,823 1,178,184 0.3
Construction & 26,790 ++Hyundai Engineering and
Housing Construction Co. 539,284 1,354,275 0.4
1,834 ++Hyundai Engineering and Construction
Co. (New Shares) 62,264 92,212 0.0
------------ ------------ ------
601,548 1,446,487 0.4
Electronics 30,000 LG Electronics Co. 1,254,940 1,093,953 0.3
1,283 LG Electronics Co. (New Shares) 36,720 46,119 0.0
------------ ------------ ------
1,291,660 1,140,072 0.3
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US Dollars)
<CAPTION>
PACIFIC
BASIN Value Percent of
(concluded) Industries Shares Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
South Steel 38,000 Pohang Iron & Steel Co., Ltd.
Korea (ADR)* $ 910,700 $ 931,000 0.2%
(concluded)
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,747,210 0.5
Total Investments in South Korea 5,174,846 6,442,953 1.7
<PAGE>
Thailand Banking 50,000 Bangkok Bank Public Company Ltd. 532,863 532,803 0.1
Building 20,000 Siam Cement Group 638,270 962,227 0.3
Materials
Telecommunications 98,000 Advanced Information Services Inc. 1,098,643 1,558,648 0.4
600,000 ++Total Access Communication
(ADR)*++++ 3,787,500 3,720,000 1.0
------------ ------------ ------
4,886,143 5,278,648 1.4
Total Investments in Thailand 6,057,276 6,773,678 1.8
Total Investments in the
Pacific Basin 121,919,598 135,178,597 36.0
WESTERN
EUROPE
Austria Energy 21,000 OMV Aktiengesellschaft 2,089,439 1,727,469 0.5
Total Investments in Austria 2,089,439 1,727,469 0.5
Finland Forest Products 40,000 Kymmene OY 1,152,579 1,089,183 0.3
Telecommunications 76,400 Nokia OY AS (Preferred) 2,163,900 4,196,239 1.1
Total Investments in Finland 3,316,479 5,285,422 1.4
France Automobile 65,000 Michelin S.A. 2,756,581 2,645,076 0.7
Banking 35,000 Credit Local de France S.A. 2,781,428 2,642,066 0.7
Cosmetics 33,000 Christian Dior S.A. 2,920,305 3,185,047 0.9
Energy 42,785 Total S.A. 'B' 2,673,402 2,635,644 0.7
Total Investments in France 11,131,716 11,107,833 3.0
<PAGE>
Germany Building 11,500 Friedrich Grohe AG (Preferred) 2,939,739 2,464,059 0.7
Materials 90,000 ++Tarkett AG 2,264,876 2,003,041 0.5
------------ ------------ ------
5,204,615 4,467,100 1.2
Machinery & 13,000 Jungheinrich AG (Preferred) 2,949,306 2,201,410 0.6
Equipment
Multi-Industry 10,000 Mannesmann AG 3,229,897 3,218,828 0.8
60,000 Vereinigte Elektrizitaets &
Bergwerks AG (Veba) 2,093,057 2,446,779 0.7
------------ ------------ ------
5,322,954 5,665,607 1.5
Recreation 25,000 ++Adidas AG 1,198,703 1,332,250 0.3
Total Investments in Germany 14,675,578 13,666,367 3.6
Italy Telecommunications 2,600,000 Telecom Italia Mobile S.p.A.
(Savings) 2,174,877 2,535,475 0.7
Textile & Apparel 95,000 ++Gucci Group N.V. 2,090,000 3,277,500 0.9
Total Investments in Italy 4,264,877 5,812,975 1.6
Netherlands Business & Public 51,100 ++Baan Company N.V. 1,370,775 2,338,507 0.6
Services
Electrical & 67,000 Philips N.V. 2,147,674 2,635,808 0.7
Electronics
Energy Equipment 90,000 IHC Caland N.V. 1,977,215 2,712,451 0.7
& Services
Total Investments in the
Netherlands 5,495,664 7,686,766 2.0
Norway Automobiles 210,000 ++Sensonor A/S 1,572,531 1,566,180 0.4
Telecommunications 50,000 Nera A/S 1,402,769 1,601,507 0.4
Total Investments in Norway 2,975,300 3,167,687 0.8
<PAGE>
Spain Banking 20,000 Banco Popular Espanol S.A. 2,911,652 3,361,754 0.9
Energy 50,000 Repsol S.A. 1,662,606 1,577,345 0.4
Forest Products 106,500 Empresa Nacional de Celulosas S.A. 2,586,070 1,820,402 0.5
& Paper
Total Investments in Spain 7,160,328 6,759,501 1.8
Sweden Automobiles 40,000 Autoliv AB 2,142,137 2,366,323 0.6
Forest Products/ 60,000 Mo Och Domsjo AB 'B' Free 2,957,303 3,000,595 0.8
Paper Packaging
Health & 60,000 Astra AB 'B' Free 1,096,951 2,204,705 0.6
Personal Care
Multi-Industry 79,000 Kinnevik AB 'B' Free 2,666,338 2,240,383 0.6
Total Investments in Sweden 8,862,729 9,812,006 2.6
Switzerland Health & 871 Roche Holdings AG 4,203,474 6,582,536 1.8
Personal Care
Total Investments in
Switzerland 4,203,474 6,582,536 1.8
United Banking 240,574 National Westminster Bank PLC 1,894,259 2,461,246 0.6
Kingdom 400,000 The Royal Bank of Scotland
Group PLC 2,996,323 3,409,731 0.9
------------ ------------ ------
4,890,582 5,870,977 1.5
Broadcasting & 125,000 Carlton Communications PLC
Publishing (Ordinary) 1,292,970 1,870,914 0.5
Business & Public 320,000 Chubb Security PLC 1,625,989 1,576,924 0.4
Services
Electronics 1,000,000 Astec (BSR) PLC 1,503,800 1,859,436 0.5
Energy 462,452 British Petroleum Co. PLC 2,325,181 3,644,843 1.0
Merchandising 700,000 House of Fraser PLC 1,899,679 1,767,612 0.5
500,000 Next PLC 1,731,357 3,412,792 0.9
------------ ------------ ------
3,631,036 5,180,404 1.4
<PAGE>
Multi-Industry 461,811 BTR PLC 2,584,919 2,360,564 0.6
287,980 Siebe PLC 2,503,289 3,327,471 0.9
------------ ------------ ------
5,088,208 5,688,035 1.5
Total Investments in the
United Kingdom 20,357,766 25,691,533 6.8
Total Investments in Western
Europe 84,533,350 97,300,095 25.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US Dollars)
<CAPTION>
SHORT-TERM Value Percent of
SECURITIES Face Amount Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Commercial $10,232,000 Associates Corp. of North America,
States Paper** 5.88% due 12/01/1995 $ 10,232,000 $ 10,232,000 2.7%
US Government & 10,000,000 Federal Home Loan Bank, 5.60% due
Agency 12/04/1995 9,995,333 9,995,333 2.7
Obligations**
Total Investments in Short-Term
Securities 20,227,333 20,227,333 5.4
Total Investments $312,057,207 370,788,936 98.7
============
Other Assets Less Liabilities 4,703,471 1.3
------------ ------
Net Assets $375,492,407 100.0%
============ ======
<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.
++Non-income producing security.
++++Restricted securities as to resale. The value of the Company's
investment was approximately $3,720,000, representing 1.0% of net
assets.
<CAPTION>
Acquisition Value
Issue Date Cost (Note 1a)
<S> <S> <C> <C>
Total Access Communication
(ADR) 4/04/1995 $3,787,500 $3,720,000
Total $3,787,500 $3,720,000
========== ==========
<PAGE>
See Notes to Financial Statements.
</TABLE>
PORTFOLIO CHANGES (unaudited)
For the Quarter Ended November 30, 1995
Additions
AT&T Corp.
Adidas AG
Aracruz Celulose S.A. (ADR)
*Canadian National Railway
Canon Inc.
DDI Corp.
GT Chilean Growth Fund (ADR)(Rights)
General Instrument Corp.
Gucci Group N.V.
Jaya Real Property
NEC Corporation
P.T. Telekomunikasi (ADR)
*Pediatrix Medical Group
The Royal Bank of Scotland Group PLC
Singapore Press Holdings Limited
*Smith Micro Software Inc.
Total Access Communication
*Union Pacific Resources
<PAGE>
Deletions
ASM Lithography Holdings N.V.
Anadarko Petroleum, Inc.
The Asahi Bank, Ltd.
BASF AG (Ordinary)
The Bank of Tokyo, Ltd.
Benefon OY
*Canadian National Railway
Catena AB 'A'
Corning Inc.
General Motors Corp.
Hagemeyer N.V.
Heineken N.V.
Heineken N.V. (New Shares)
Koninklijke Nederlandsche Hoogovens
en Staalfabrieken N.V.
Mercantile Bancorp., Inc.
Newbridge Networks Corp.
*Pediatrix Medical Group
Rottneros Bruks AB Free
Sanyo Electric Co., Ltd.
Sinclair Broadcast Group, Inc.
*Smith Micro Software Inc.
Suzuki Motor Corp.
Television Broadcast, Ltd.
*Union Pacific Resources
Volvo AB 'A'
Wal-Mart Stores, Inc.
Zurich Insurance AG
[FN]
*Added and deleted in the same quarter.
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of November 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$312,057,207)
(Note 1a) $370,788,936
Cash 457,008
Receivables:
Securities sold $ 3,866,643
Capital shares sold 1,041,659
Dividends 596,491
Interest 82 5,504,875
------------
Prepaid registration fees and other assets (Note 1f) 34,686
------------
Total assets 376,785,505
------------
Liabilities: Payables:
Capital shares redeemed 602,407
Investment adviser (Note 2) 302,683
Distributor (Note 2) 36,657 941,747
------------
Accrued expenses and other liabilities 351,351
------------
Total liabilities 1,293,098
------------
<PAGE>
Net Assets: Net assets $375,492,407
============
Net Assets Class A Shares of Common Stock, $0.10 par value, 100,000,000
Consist of: shares authorized $ 2,359,239
Class B Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 331,679
Class C Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 2,807
Class D Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 24,994
Paid-in capital in excess of par 295,224,617
Accumulated investment loss--net (1,935,539)
Undistributed realized capital gains on investments and
foreign currency transactions--net 20,757,888
Unrealized appreciation on investments and foreign
currency transactions--net 58,726,722
------------
Net assets $375,492,407
============
Net Asset Class A--Based on net assets of $327,270,122 and
Value: 23,592,389 shares outstanding $ 13.87
============
Class B--Based on net assets of $44,387,530 and
3,316,793 shares outstanding $ 13.38
============
Class C--Based on net assets of $375,660 and 28,069
shares outstanding $ 13.38
============
Class D--Based on net assets of $3,459,095 and 249,936
shares outstanding $ 13.84
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended November 30, 1995
<S> <S> <C> <C>
Investment Income Dividends (net of $462,990 foreign withholding tax) $ 5,389,750
(Notes 1d & 1e): Interest and discount earned 1,812,889
------------
Total income 7,202,639
------------
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 3,740,624
Transfer agent fees--Class A (Note 2) 785,911
Account maintenance and distribution fees--Class B (Note 2) 453,009
Custodian fees 361,796
Printing and shareholder reports 289,917
Accounting services (Note 2) 171,044
Transfer agent fees--Class B (Note 2) 125,154
Professional fees 102,505
Directors' fees and expenses 39,132
Registration fees (Note 1f) 23,285
Pricing fees 9,309
Account maintenance fees--Class D (Note 2) 7,980
Transfer agent fees--Class D (Note 2) 7,712
Account maintenance and distribution fees--Class C (Note 2) 2,816
Transfer agent fees--Class C (Note 2) 799
Other 14,557
------------
Total expenses 6,135,550
------------
Investment income--net 1,067,089
------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 20,848,259
(Loss) on Foreign currency transactions--net (1,454,944) 19,393,315
Investments &
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 23,299,708
(Notes 1b, 1c, Foreign currency transactions--net 1,248,009 24,547,717
1e & 3): ------------ ------------
Net realized and unrealized gain on investments
and foreign currency transactions 43,941,032
------------
Net Increase in Net Assets Resulting from Operations $ 45,008,121
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended
November 30,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 1,067,089 $ 347,222
Realized gain on investments and foreign currency trans-
actions--net 19,393,315 15,268,249
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 24,547,717 (7,131,023)
------------ ------------
Net increase in net assets resulting from operations 45,008,121 8,484,448
------------ ------------
Dividends & Investment income--net:
Distributions to Class A (177,010) (292,787)
Shareholders Class D (352) --
(Note 1g): Realized gain on investments--net:
Class A (13,259,833) (15,976,086)
Class B (2,030,586) (1,819,251)
Class C (7,459) --
Class D (65,148) --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (15,540,388) (18,088,124)
------------ ------------
Capital Share Net increase (decrease) in net assets derived from capital
Transactions share transactions (35,521,768) 100,706,623
(Note 4): ------------ ------------
Net Assets: Total increase (decrease) in net assets (6,054,035) 91,102,947
Beginning of year 381,546,442 290,443,495
------------ ------------
End of year* $375,492,407 $381,546,442
============ ============
<FN>
*Undistributed (accumulated) investment income (loss)--net
(Note 1h) $ (2,025,871) $ 530,009
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have Class A
been derived from information provided
in the financial statements. For the Year
Ended November 30,
Increase (Decrease) in Net Asset Value: 1995++++ 1994++++ 1993++++ 1992++++ 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 12.82 $ 13.07 $ 11.78 $ 10.95 $ 10.48
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .05 .03 .04 .10 .16
Realized and unrealized gain on investments
and foreign currency transactions--net 1.52 .53 2.07 1.05 .53
-------- -------- -------- -------- --------
Total from investment operations 1.57 .56 2.11 1.15 .69
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.01) (.01) -- (.10) (.21)
Realized gain on investments--net (.51) (.80) (.82) (.22) (.01)
-------- -------- -------- -------- --------
Total dividends and distributions (.52) (.81) (.82) (.32) (.22)
-------- -------- -------- -------- --------
Net asset value, end of year $ 13.87 $ 12.82 $ 13.07 $ 11.78 $ 10.95
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 12.92% 4.39% 19.16% 10.67% 6.77%
Return:** ======== ======== ======== ======== ========
Ratios to Expenses 1.51% 1.44% 1.43% 1.49% 1.48%
Average ======== ======== ======== ======== ========
Net Assets: Investment income (loss)--net .41% .23% .32% (.19%) 1.31%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $327,270 $330,132 $256,203 $166,947 $165,687
Data: ======== ======== ======== ======== ========
Portfolio turnover 44.64% 40.18% 56.98% 65.93% 63.94%
======== ======== ======== ======== ========
<CAPTION>
The following per share data and ratios have Class B
been derived from information provided
in the financial statements. For the Year
Ended November 30,
Increase (Decrease) in Net Asset Value: 1995++++ 1994++++ 1993++++ 1992++++ 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 12.50 $ 12.74 $ 11.62 $ 10.82 $ 10.36
Operating -------- -------- -------- -------- --------
Performance: Investment income (loss)--net (.08) (.10) (.08) (.03) .04
Realized and unrealized gain on investments
and foreign currency transactions--net 1.47 .52 2.02 1.05 .54
-------- -------- -------- -------- --------
Total from investment operations 1.39 .42 1.94 1.02 .58
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- -- -- (.11)
Realized gain on investments--net (.51) (.66) (.82) (.22) (.01)
-------- -------- -------- -------- --------
Total dividends and distributions (.51) (.66) (.82) (.22) (.12)
-------- -------- -------- -------- --------
Net asset value, end of year $ 13.38 $ 12.50 $ 12.74 $ 11.62 $ 10.82
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 11.78% 3.32% 17.87% 9.58% 5.67%
Return:** ======== ======== ======== ======== ========
Ratios to Expenses, excluding account maintenance
Average and distribution fees 1.55% 1.48% 1.46% 1.52% 1.51%
Net Assets: ======== ======== ======== ======== ========
Expenses 2.55% 2.48% 2.46% 2.52% 2.51%
======== ======== ======== ======== ========
Investment income (loss)--net (.63%) (.80%) (.72%) (1.19%) .25%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 44,387 $ 49,647 $ 34,241 $ 22,925 $ 24,960
Data: ======== ======== ======== ======== ========
Portfolio turnover 44.64% 40.18% 56.98% 65.93% 63.94%
======== ======== ======== ======== ========
<CAPTION>
Class C Class D
For the For the
The following per share data and ratios have Period Period
been derived from information provided in For the Oct. 21, For the Oct. 21,
the financial statements. Year Ended 1994++ to Year Ended 1994++ to
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1995++++ 1994++++ 1995++++ 1994++++
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.51 $ 13.08 $ 12.81 $ 13.39
Operating -------- -------- -------- --------
Performance: Investment income (loss)--net (.08) (.02) .02 (.01)
Realized and unrealized gain (loss) on investments
and foreign currency transactions--net 1.46 (.55) 1.52 (.57)
-------- -------- -------- --------
Total from investment operations 1.38 (.57) 1.54 (.58)
-------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- (.00)+++++ --
Realized gain on investments--net (.51) -- (.51) --
-------- -------- -------- --------
Total dividends and distributions (.51) -- (.51) --
-------- -------- -------- --------
Net asset value, end of period $ 13.38 $ 12.51 $ 13.84 $ 12.81
======== ======== ======== ========
Total Investment Based on net asset value per share 11.69% (4.36%)+++ 12.73% (4.33%)+++
Return:** ======== ======== ======== ========
<PAGE>
Ratios to Average Expenses, excluding account maintenance
Net Assets: and distribution fees 1.55% 2.00%* 1.51% 1.98%*
======== ======== ======== ========
Expenses 2.55% 3.00%* 1.76% 2.23%*
======== ======== ======== ========
Investment income (loss)--net (.63%) (1.31%)* .18% (.67%)*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 376 $ 177 $ 3,459 $ 1,591
Data: ======== ======== ======== ========
Portfolio turnover 44.64% 40.18% 44.64% 40.18%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effect of sales loads.
++Commencement of Operations.
++++Based on average shares outstanding during the period.
+++Aggregate total investment return.
+++++Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Holdings, Inc. (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.
<PAGE>
(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. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. 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 which are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written 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 last
asked price. Options purchased are valued at the last sale price in
the case of exchange-traded or, in the case of options traded in the
over-the-counter market, the last bid price. Short-term securities
are valued at amortized cost, which approximates market value. Other
investments, including futures contracts and related options, are
stated at market value. Securities and assets for which market value
quotations are not available are valued at their fair value as
determined in good faith by or under the direction of the Company's
Board of Directors.
(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) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(c) Derivative financial instruments--The Company may engage in
various portfolio strategies to seek to increase its return by
hedging its portfolio against adverse movements in the equity, debt
and currency markets. Losses may arise due to changes in the value
of the contract or if the counterparty does not perform under the
contract.
* Options--The Company is authorized to write covered call options
and purchase 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 market value of
the option written.
<PAGE>
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds 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 transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward foreign exchange contracts--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.
* Foreign currency options and futures--The Company may also
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 may 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.
* Financial futures contracts--The Company may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures contracts
are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Company deposits and maintains as collateral such
initial margin as required by the exchange on which the transaction
is effected.
Pursuant to the contract, the Company agrees to receive from or pay
to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as
variation margin and are recorded by the Company as unrealized gains
or losses. When the contract is closed, the Company records a
realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
<PAGE>
(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.
(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.
(h) Reclassification--Generally accepted accounting principles
require that certain components of net assets be reclassified to
reflect permanent differences between financial reporting and tax
purposes. Accordingly, current year's permanent book/tax differences
of $3,355,275 have been reclassified from undistributed net realized
capital gains to accumulated net investment loss. These
reclassifications have no effect on net assets or net asset values
per share.
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"). The general partner
of MLAM is Princeton Services, Inc. ("PSI"), an indirect wholly-
owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is
the limited partner. The Company has also entered into a
Distribution Agreement and Distribution Plans with Merrill Lynch
Funds Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
As compensation for its services to the Company, MLAM receives
monthly compensation at the annual rate of 1.0% 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 MLAM 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. MLAM's obligation to reimburse the Company is limited to
the amount of the investment advisory fee. No fee payment will be
made to MLAM during any fiscal year which will cause such expenses
to exceed the most restrictive expense limitation at the time of
such payment.
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.
For the year ended November 30, 1995, MLFD earned underwriting
discounts and direct commissions 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 $ 1,842 $ 17,301
Class D $ 881 $ 13,922
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
For the year ended November 30, 1995, MLPF&S received contingent
deferred sales charges of $89,423 and $97 relating to transactions
in Class B and Class C Shares, respectively.
In addition, MLPF&S received $38,165 in commissions on the execution
of portfolio security transactions for the Company for the year
ended November 30, 1995.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, MLPF&S, MLFDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended November 30, 1995 were $155,988,638 and
$200,855,465, respectively.
Net realized and unrealized gains (losses) as of November 30, 1995
were as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 20,848,305 $ 58,731,729
Short-term investments (46) --
Foreign currency transactions (1,454,944) (5,007)
------------ ------------
Total $ 19,393,315 $ 58,726,722
============ ============
As of November 30, 1995, net unrealized appreciation for Federal
income tax purposes aggregated $58,621,728, of which $68,770,392
related to appreciated securities and $10,148,664 related to
depreciated securities. The aggregate cost of investments at
November 30, 1995 for Federal income tax purposes was $312,167,208.
4. Capital Stock Transactions:
Net increase (decrease) in net assets derived from capital share
transactions was ($35,521,768) and $100,706,623 for the years ended
November 30, 1995 and November 30, 1994, respectively.
<PAGE>
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended November 30, 1995 Shares Amount
Shares sold 6,594,967 $ 84,361,655
Shares issued to shareholders in
reinvestment of dividends and
distributions 949,889 11,322,677
----------- -------------
Total issued 7,544,856 95,684,332
Shares redeemed (9,701,811) (124,736,786)
----------- -------------
Net decrease (2,156,955) $ (29,052,454)
=========== =============
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 B Shares for the Year Dollar
Ended November 30, 1995 Shares Amount
Shares sold 524,355 $ 6,805,305
Shares issued to shareholders in
reinvestment of distributions 154,488 1,793,609
----------- -------------
Total issued 678,843 8,598,914
Shares redeemed (1,292,140) (15,830,273)
Automatic conversion of shares (40,632) (883,950)
----------- -------------
Net decrease (653,929) $ (8,115,309)
=========== =============
<PAGE>
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)
Automatic conversion of shares (102,695) (1,309,366)
----------- -------------
Net increase 1,283,995 $ 16,797,836
=========== =============
Class C Shares for the Year Dollar
Ended November 30, 1995 Shares Amount
Shares sold 21,916 $ 274,811
Shares issued to shareholders in
reinvestment of distributions 445 5,171
----------- -------------
Total issued 22,361 279,982
Shares redeemed (8,437) (106,151)
----------- -------------
Net increase 13,924 $ 173,831
=========== =============
Class C Shares for the Period Dollar
Oct. 21, 1994++ to Nov. 30, 1994 Shares Amount
Shares sold 16,968 $ 221,416
Shares redeemed (2,823) (36,788)
----------- -------------
Net increase 14,145 $ 184,628
=========== =============
[FN]
++Commencement of Operations.
<PAGE>
Class D Shares for the Year Dollar
Ended November 30, 1995 Shares Amount
Shares sold 705,152 $ 8,594,947
Shares issued to shareholders in
reinvestment of dividends and
distributions 4,931 58,733
Automatic conversion of shares 70,176 883,950
----------- -------------
Total issued 780,259 9,537,630
Shares redeemed (654,458) (8,065,466)
----------- -------------
Net increase 125,801 $ 1,472,164
=========== =============
Class D Shares for the Period Dollar
Oct. 21, 1994++ to Nov. 30, 1994 Shares Amount
Shares sold 24,298 $ 323,555
Automatic 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, 1995, the Company had entered into foreign exchange
contracts under which it had agreed to sell various foreign
currencies with an approximate value of $2,097,283.
6. Subsequent Event:
On December 15, 1995, the Board of Directors declared an ordinary
income dividend in the amount of $0.163701 per share for each of the
four classes and a long-term capital gains distribution in the
amount of $0.583582 per share for each of the four classes, payable
on December 22, 1995 to shareholders of record as of December 14,
1995.
<PAGE>
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Global Holdings, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Global Holdings, Inc. as of November 30, 1995, 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 each of the years in the five-year
period then ended. 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, 1995, by correspondence with the custodian. 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, Inc. as of November 30, 1995, 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, 1996
</AUDIT-REPORT>
