MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Annual Report
November 30, 1996
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, NY 11245
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
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
Printed on post-consumer recycled paper
MERRILL LYNCH GLOBAL HOLDINGS, INC.
Worldwide
Investments
As of 11/30/96
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
<PAGE>
Roche Holdings AG Switzerland 1.5%
Intel Corp. United States 1.4
Enterprise Oil PLC United Kingdom 1.3
British Petroleum Co. PLC United Kingdom 1.2
Siebe PLC United Kingdom 1.2
Banco Bilbao Vizcaya S.A. Spain 1.1
Baan Company N.V. Netherlands 1.1
Sun Hung Kai Properties, Ltd. Hong Kong 1.1
Next PLC United Kingdom 1.1
Tokyo Broadcasting System, Inc. Japan 1.1
Percent of
Ten Largest Industries Net Assets
Banking 8.8%
Multi-Industry 8.6
Telecommunications 8.0
Merchandising 7.4
Electrical & Electronics 6.7
Business & Public Services 4.9
Broadcasting & Publishing 4.7
Health & Personal Care 4.6
Electronics/Components 3.0
Energy 2.6
Important Tax
Information
(unaudited)
<TABLE>
The following information summarizes all per share distributions
paid by Merrill Lynch Global Holdings, Inc. (the "Fund") during its
taxable year ended November 30, 1996:
<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> <S> <S> <C> <C> <C> <C> <C> <C>
Class A Shares 12/14/95 12/22/95 $0.045402 $0.071658 $0.046641 $0.163701 $0.017052 $0.583582
Class B Shares 12/14/95 12/22/95 $0.045402 $0.071658 $0.046641 $0.163701 $0.017052 $0.583582
Class C Shares 12/14/95 12/22/95 $0.045402 $0.071658 $0.046641 $0.163701 $0.017052 $0.583582
Class D Shares 12/14/95 12/22/95 $0.045402 $0.071658 $0.046641 $0.163701 $0.017052 $0.583582
The qualifying domestic ordinary income qualifies for the dividends
received deduction for corporations.
<PAGE>
All of the foreign taxes paid or withheld represent taxes incurred
by the Fund on dividends received by the Fund from foreign sources.
Foreign taxes paid or withheld should be included in taxable income
with an offsetting deduction from gross income or as a credit for
taxes paid to foreign governments. You should consult your tax
adviser regarding the appropriate treatment of foreign taxes paid.
Please retain this information for your records.
</TABLE>
DEAR SHAREHOLDER
The volatility which has characterized the world's equity markets
persisted during the quarter ended November 30, 1996. The total
return of global markets overall, as measured by the unmanaged
Morgan Stanley Capital International (MSCI) World Stock Index, was
+10.44%, a significant improvement from the -1.99% return of the
three-month period ended August 31, 1996. For the quarter ended
November 30, 1996, total returns for the Fund's Class A, Class B,
Class C and Class D Shares were +7.77%, +7.46%, +7.46% and +7.66%,
respectively, underperforming the MSCI World Stock Index. (Results
shown do not reflect sales charges and would be lower if sales
charges were included. Complete performance data, including average
annual total returns, can be found on pages 7--10 of this report to
shareholders.) Once again, the results varied widely across
geographic regions. North American markets were particularly strong.
The unmanaged Morgan Stanley Capital International North America
Index gained 16.6%. By comparison, the Europe index was up 9.8%,
while the Far East index rose a scant 0.6%. Even within regions,
results were highly disparate. For example, in the Far East, Hong
Kong rose 20% while Japan declined 1.9%. In Europe, Sweden rose 16%
and Switzerland fell 1.9%. Obviously, the geographic allocation of
assets continued to be an important determinant of portfolio
returns.
One particularly interesting indication of the strength in the US
market is the fact that the Dow Jones Industrial Average gained
8.35% in the month of November. To put this in historical
perspective, the monthly return exceeded the annual return in 31 of
the past 70 years. This advance in the Dow Jones Industrial Average
(DJIA) is also illustrative of another ongoing market phenomenon.
Around the world, market breadth has deteriorated. Stated another
way, investors have increasingly concentrated their purchase
activity on fewer issues. Again, the US market provides an excellent
example. Over the six months ended November 30, 1996, the DJIA rose
16.91%. Over the same period, the unmanaged Russell 2000 Index of
small- to mid-capitalization stocks declined 2.14%. This narrowing
of focus has contributed to intramarket volatility.
<PAGE>
In previous shareholder reports, we have commented extensively on
the factors most responsible for increased equity market volatility.
They include economic and political considerations and massive money
flows. Our thesis that the world's economies have been in a period
of transition from slow to more rapid growth has proven to be valid.
Outside the United States, this has become increasingly clear. In
Europe, overall growth has accelerated, although at varying rates on
an individual country basis. Progress has been somewhat restricted
by the tight fiscal policies governments have adopted in order to
comply with Maastricht criteria for European Monetary Union.
In Asia, the economic situation remains mixed. The Japanese economic
recovery is still fragile, but has been aided significantly by the
positive impact on exports of a weak yen. However, domestic activity
is lackluster. In the People's Republic of China and Hong Kong,
there has been a well-defined reacceleration of growth. Elsewhere,
growth rates slowed as had been forecast, but remained at very
healthy levels relative to the rest of the world. A reacceleration
of economic growth is expected in 1997, as lower interest rates
foster better domestic growth and exports increase because of the
improving economies of many trade partners.
The US economy has likewise slowed over the course of 1996.
Unfortunately, the outlook is not as clear as in other geographic
regions. Most economic indicators signal a continuation of moderate
economic growth. However, there have been a few signs of
inflationary pressures in labor markets. These are being closely
monitored by the Federal Reserve Board. Should the Federal Reserve
Board choose to raise interest rates, economic growth prospects
would be negatively impacted and the stock market could be
vulnerable.
Political events around the globe have also continued to induce
equity market volatility. Other than highly publicized trade
frictions, most have been internal, country-specific events which
generally affected only the local market. Over the coming year there
could continue to be an array of market-impacting surprises. There
are political and economic developments that must be continuously
monitored because they could have significant and broad equity
market implications. Examples of these would be the development of
Chinese trade policy, US efforts to solve the funding problems of
entitlement programs, progress toward easing rigidities in European
labor markets, the Russian economic and political situation, and
possible escalating tensions in the Middle East. These are
developments that could foster wide-ranging currency and equity
market movements.
Change often results in volatility, but volatility also can provide
opportunity, as well as secular growth of the world's economies. We
are committed to offering investors a diversified portfolio that
reflects those global opportunities.
<PAGE>
Investment Environment
Japan
During the past three months, overall stock market activity in Japan
remained subdued as confidence in Japan's recovery has remained low.
The result of the Bank of Japan's latest quarterly survey of
business conditions reinforced the view that the economy is still on
a gradual recovery trend. However, the survey results were not
strong enough to dispel investor anxiety about the economic
prospects for next year. Currently, there are growing concerns that
the government's planned fiscal tightening may derail Japan's
recovery next year. The consumption tax is scheduled to rise
starting April 1997, the temporary income tax rebate will be
discontinued effective January 1997, and the supplementary budget
will likely be smaller than earlier expected. These concerns were
heightened after the release of recent government studies which
highlighted the severity of Japan's fiscal position. The Bank of
Japan's November survey did not appear to have any implications
which might lead the bank to change its current low interest rate
policy. However, given that the pace of economic recovery is more
sluggish than expected a year ago, investors are focusing on Japan's
future course of fiscal policy. Some argue that the government's
public expenditures will hold the key to economic growth and asset
prices in Japan next year.
Our Japanese portfolio did not change much during the November
quarter. With the prevailing general sense of pessimism, unexciting
interim earnings results and the modest profits outlook for next
year, we reduced our Japanese exposure slightly by selling Sumitomo
Metal Industries Co., Ltd. and reducing our position in Asahi
Chemical Industry Co., both companies whose earnings are more geared
to domestic economic recovery. As we continued to focus on globally
competitive export-oriented companies in our portfolio, we were able
to outperform the Nikkei 225 market index for the quarter and for
the fiscal year ended November 30, 1996. Our major holdings, such as
Toyota Motor Corp., Matsushita Electrical Industrial Co. and Canon
Inc., have performed strongly even as the overall market languished.
These companies reported stronger-than-expected earnings results,
partly helped by the weaker yen which depreciated about 30% against
the US dollar between April 1995 and October 1996. In the absence of
clear signs of economic rebound and accelerating overall corporate
profits, we have been underweighted in Japan throughout the year. We
will maintain our current cautious investment stance unless we see
more signs that the Japanese policy makers are becoming serious
about deregulation and restructuring of the economy. We believe that
only stepped-up structural reform can boost investor confidence in
the long term.
<PAGE>
Asia (ex Japan)
Following a poor third quarter, many of the Asian markets registered
a better performance during the November quarter. However, dis-
parities widened with the Hong Kong, Malaysian and Indonesian
markets moving up, but the Korean, Thailand and Indian markets
remaining poor performers. Although our overweighting in the smaller
Asian markets throughout the fiscal year did not contribute to the
Fund's overall performance, maintaining defensive well-managed,
large-capitalized companies as the portfolio's core holdingshad a
positive impact. In most markets, larger and stronger companies have
consistently outperformed the smaller companies. As a result, the
Fund's Pacific Basin portfolio outperformed the unmanaged MSCI
Pacific Basin Index for the fiscal year ended November 30, 1996,
with an estimated return of +4.9% as compared to the unmanaged MSCI
Pacific Basin return of +0.5%. We think the prospects for the small
Asian markets are improving. In our view, the current export
slowdown in Asia is a cyclical phenomenon. Exports should gradually
recover next year, driven by improvement in economies of the
developed countries. Given our long-term enthusiasm for Asian
markets, we made no major changes to our portfolio during the
November quarter. We did eliminate P.T. Indonesian Satellite Corp.
as the company's near-term earnings outlook had somewhat
deteriorated in response to increased competition.
Europe
As highlighted earlier, European economies have generally improved
over the course of the year, albeit at an uneven rate. The UK
economy provided solid employment and income growth--somewhat
abetted by pre-election government spending. Nonetheless, consumer
confidence is high and has reflected itself in strong retail
spending. In Germany and the Netherlands, growth has been more
moderate and has been primarily export-driven. Economic activity in
France, Italy and Spain has been more sluggish, but signs of
improvement are evident. Continental Europe must deal with labor
market rigidities and business regulatory issues if it hopes to
become broadly competitive in world markets.
Despite a relatively weak economic backdrop, European equity markets
performed quite well. Many company managements have undertaken
fundamental restructuring programs and have increased their focus on
profitability. Our European holdings increased 11.5% in value during
the November quarter. Large gains in many of our technology holdings
helped provide that excellent result. Nokia OY AS 'A' gained 35%,
Dassault Systemes S.A. rose 27%, and Phillips Electronics N.V. rose
24%. Our airbag-related investments, Autoliv AB and Sensonor A/S,
reacted positively to increased US government focus on airbag safety
and each gained 35%. The 17% gain in crude oil prices was exactly
matched by the price rise in Enterprise Oil PLC, which has become
the Fund's third-largest holding.
<PAGE>
Recently, we made initial investments in the British manufacturer,
BBA Group PLC; the Italian conglomerate, Montedison S.p.A.; and the
Portuguese cement company, Cimpor--Cimentos de Portugal S.A. We sold
our positions in The Royal Bank of Scotland Group PLC and Repsol
S.A., the Spanish oil company. The bank stock was divested because
problems at its direct-marketing insurance subsidiary were impacting
overall corporate results. The proceeds of the Repsol S.A. sale were
redeployed into Enterprise Oil PLC and British Petroleum Co. PLC,
both of which have better near-term prospects, in our opinion.
North America
The total return of the unmanaged Standard & Poor's 500 Composite
Index (S&P 500) was +16.75% during the November quarter. This
reflected a flow of well-received indications of continued moderate
economic growth and a benign inflationary outlook. Moreover, the US
Presidential and Congressional election results alleviated a number
of investor concerns.
During the fourth quarter, several of our holdings that were
involved in merger-related activity experienced substantial price
appreciation. In Canada, Viridian, Inc. shares jumped 16.7% in
connection with the announcement of an acquisition offer from
another Canadian fertilizer producer, Agrium Inc. Office Depot, Inc.
agreed to be acquired by Staples Inc., another office supply
retailer, which caused it to appreciate 22.7% during the November
quarter. We sold our Consolidated Rail Corp. shares for a
substantial gain after the company agreed to be acquired by another
railroad. Finally, Time Warner Inc. completed its merger with Turner
Broadcasting Systems Inc., which removed a major uncertainty for the
company and contributed to its 22.1% appreciation during the fourth
quarter. Several of our pharmaceutical and financial services
holdings made positive contributions to North American performance.
Merck & Co., Inc., Pfizer, Inc., Bank of New York, Inc., Barnett
Banks, Inc. and Mercury General Corp. continued to produce solid
gains, appreciating 26.5%, 26.2%, 28.7%, 34.1% and 26.7%,
respectively. Within the technology sector, Microsoft Corp., Oracle
Corporation, Intel Corp., Texas Instruments Inc. and Ultratech
Stepper Inc. outperformed the S&P 500 with gains of 28.1%, 39.0%,
59.0%, 36.4% and 49.2%, respectively. Harnischfeger Industries, Inc.
and PPG Industries, Inc. reported strong results during the November
quarter, appreciating 17.5% and 24.1%, respectively. On the negative
side, two of our smaller, less mature holdings, Forest Laboratories,
Inc. and Molten Metal Technology, Inc., made announcements which
could have adverse consequences for them. Since we continue to
believe in the companies' longer-term prospects, we viewed these
price declines as an opportunity to purchase additional shares at
attractive prices.
<PAGE>
During the last fiscal quarter, we eliminated our positions in
AFLAC, Inc., Applied Materials, Inc., AT&T Corp., Consolidated Rail
Corp., Walt Disney Co., Motorola, Inc., Pacficare Health Systems
Inc., and two spin-offs, Westaim Corporation (Viridian Inc.) and
Lucent Technologies, Inc. (AT&T Corp.). We initiated a position in
Federated Department Stores, Inc., which is expected to benefit from
sales gains, particularly in its California department stores, as a
result of the economic recovery in that state, an improvement in
profit margins from changes in its merchandise offerings, and merger-
related expense savings.
Latin America
The Latin American equity markets turned in mixed performances
during the November quarter, reflecting continued uncertainty about
prospects for economic and political reform. The Mexican index,
after a period of strong performance, finished the November quarter
with slightly negative results. Brazil finished the quarter with mid
single-digit gains, and Chile experienced a mid single-digit
decline. The only Latin American equity market with performance
exceeding that of the United States in the quarter was Argentina,
with an increase of just under 20%. Both our Argentine holdings,
Yacimientos Petroliferos Fiscales S.A. and Compania Naviera Perez
Companc S.A. C.F.I.M.F.A., performed well, particularly Perez
Companc S.A. with a 19.8% gain for the quarter. Our holdings in
Uniao de Bancos Brasileiros S.A., Grupo Financiero Banorte S.A. de
C.V., Grupo Carso, S.A. de C.V. and Panamerican Beverages, Inc. also
outperformed their respective indexes. However, Aracruz Celulose
S.A., one of the lowest-cost pulp producers in the world, continued
to suffer from a weak pricing environment for its products. In
Chile, we eliminated our remaining shares of Madeco S.A., which is
experiencing pressure on its earnings from adverse conditions in the
copper markets. We initiated our first position in Colombia, the
retailer Almacenes Exito S.A. After visiting the company last year,
we were impressed by the fact that the Colombian population is
vastly underserved by retail store chains when compared to many
other countries, and that the company is well-positioned in its
industry. Although the Colombian market experienced a great deal of
turbulence in response to economic and political uncertainty, we
viewed this purchase as a longer-term opportunity to own shares in a
leading company at a much more reasonable price.
Fiscal Year in Review
Total returns for Merrill Lynch Global Holdings, Inc.'s Class A,
Class B, Class C and Class D Shares were +15.20%, +13.97%, +14.05%
and +14.86%, respectively, for the 12 months ended November 30,
1996. These results lagged the +18.70% total return of the unmanaged
MSCI World Stock Index over the same period. The primary reason for
this underperformance was asset allocation. The Fund is
significantly more diversified geographically and was underweighted
in the US market. Since the US market comprised over 40% of the
index and was the best-performing major market, the underweighted
position negatively impacted relative performance. Also, we were
overweighted in the Pacific Basin (ex Japan). Our stock selection
was good and our holdings performed significantly better than the
regional averages, but did not improve overall portfolio
performance. On the positive side, we have been overweighted in
Europe, and good stock selection led to dramatic outperformance
versus the regional average.
<PAGE>
After two years in which the US stock market outperformed the global
averages quite substantially, some investors tend to question the
benefits of international diversification. We know that such
diversification has historically provided incremental returns. Our
conviction that future opportunities and returns are even more
exciting remains firm. Mr. Bob Martin, a senior executive at Wal-
Mart Stores Inc., provided some interesting insight regarding
international opportunities in a recent presentation. He believes
that the growth of consumerism in Asia and Latin America, fueled by
the universal acceptance of free market economics, will create a
pool of two billion--three billion new consumers who will migrate to
the middle class. Wal-Mart Stores Inc. will push ahead
internationally because of this new group of potential customers,
and the fact that communications technology has provided a world
with no frontiers which means that large, successful businesses must
be international in scope. For the coming year, Mr. Martin estimated
the annual growth in middle class consumption at the following
rates: Western Europe, 1.6%; United States, 1.9%; Latin America,
4.4%; Southeast Asia, 4.5%; Eastern Europe, 8.2%; and China, 11.4%.
Another key factor prompting Wal-Mart Stores Inc. to expand globally
is basic demographics. The US baby boom created 64 million teenagers
and many investment opportunities in the 1960s and later. In
comparison, from 1980 through 2015 over three billion people will
become teenagers in the developing world. We expect this to provide
opportunities for innovative companies, and for investors.
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 upcoming report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Edward F. Korff)
Edward F. Korff
Vice President and Portfolio Manager
January 7, 1997
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 approximately 8 years. (There is no initial
sales charge for automatic share conversions.)
* 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>
<TABLE>
Recent
Performance
Results
<CAPTION>
12 Month 3 Month
11/30/96 8/31/96 11/30/95 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* $15.12 $14.03 $13.87 +13.84%(1) + 7.77%
ML Global Holdings, Inc. Class B Shares* 14.40 13.40 13.38 +12.58(1) + 7.46
ML Global Holdings, Inc. Class C Shares* 14.41 13.41 13.38 +12.66(1) + 7.46
ML Global Holdings, Inc. Class D Shares* 15.04 13.97 13.84 +13.50(1) + 7.66
ML Global Holdings, Inc. Class A Shares--Total Return* +15.20(2) + 7.77
ML Global Holdings, Inc. Class B Shares--Total Return* +13.97(2) + 7.46
ML Global Holdings, Inc. Class C Shares--Total Return* +14.05(2) + 7.46
ML Global Holdings, Inc. Class D Shares--Total Return* +14.86(2) + 7.66
World Stock Index--Total Return** +18.70 +10.44
<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>
PERFORMANCE DATA (continued)
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 the growth of an investment in the Morgan
Stanley Capital International World Stock Index. Beginning and
ending values are:
11/86 11/96
<PAGE>
ML Global Holdings Fund, Inc.++--
Class A Shares* $ 9,475 $24,343
Morgan Stanley Capital International
World Stock Index++++ $10,000 $28,392
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the Morgan
Stanley Capital International World Stock Index. Beginning and
ending values are:
10/21/88** 11/96
ML Global Holdings Fund, Inc.++--
Class B Shares* $10,000 $20,327
Morgan Stanley Capital International
World Stock Index++++ $10,000 $20,291
A line graph depicting the growth of an investment in the Fund's
Class C and Class D Shares compared to the growth of an investment
in the Morgan Stanley Capital International World Stock Index.
Beginning and ending values are:
10/21/94** 10/95
ML Global Holdings Fund, Inc.++--
Class C Shares* $10,000 $12,184
ML Global Holdings Fund, Inc.++--
Class D Shares* $ 9,475 $11,737
Morgan Stanley Capital International
World Stock Index++++ $10,000 $13,444
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++ML Global Holdings Fund, Inc. invests in an internationally
diversified portfolio of securities.
++++This unmanaged capitalization-weighted Index is comprised of
2,200 equities from 24 countries in 12 regions, including the United
States.
Past performance is not predictive of future performance.
Average Annual
Total Return
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/96 +11.43% +5.58%
Five Years Ended 9/30/96 +10.61 +9.43
Ten Years Ended 9/30/96 + 9.88 +9.29
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/96 +10.27% +6.27%
Five Years Ended 9/30/96 + 9.49 +9.49
Inception (10/21/88)
through 9/30/96 + 8.82 +8.82
[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 9/30/96 +10.27% +9.27%
Inception (10/21/94)
through 9/30/96 + 8.53 +8.53
[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*
<PAGE>
Year Ended 9/30/96 +11.07% +5.24%
Inception (10/21/94)
through 9/30/96 + 9.40 +6.41
[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--11/30/96 13.32 15.12 -- -- +13.51
------- ------
Total $10.442 Total $2.720
Cumulative total return as of 11/30/96: +364.66%**
<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>
PERFORMANCE DATA (concluded)
<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--11/30/96 12.82 14.40 -- -- +12.32
------ ------
Total $4.647 Total $0.871
Cumulative total return as of 11/30/96: +103.27%**
<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%
1995 11.87 12.82 0.584 $0.164 +14.37
1/1/96--11/30/96 12.82 14.41 -- -- +12.40
------ ------
Total $1.098 Total $0.164
Cumulative total return as of 11/30/96: +21.84%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<PAGE>
<TABLE>
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--11/30/96 13.29 15.04 -- -- +13.17
------ ------
Total $1.098 Total $0.167
Cumulative total return as of 11/30/96: +23.87%**
<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>
SCHEDULE OF INVESTMENTS (In US Dollars)
<CAPTION>
LATIN Shares Value Percent of
AMERICA Industries Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <C> <C> <C> <C>
Argentina Energy 120,000 Yacimientos Petroliferos Fiscales
S.A.-- (ADR)* $ 2,350,450 $ 2,790,000 0.6%
Multi-Industry 339,000 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 1,396,267 2,306,192 0.5
Total Investments in Argentina 3,746,717 5,096,192 1.1
Brazil Banking 76,000,000 Uniao de Bancos Brasileiros S.A.
(Preferred) 2,056,000 2,091,122 0.5
Forest Products 397,500 Aracruz Celulose S.A. (ADR)* 3,624,750 3,080,625 0.7
& Paper
Telecommuni- 30,000,00 Telecommunicaoes Brasileiras S.A.
cations --Telebras PN (Preferred) 1,069,928 2,274,179 0.5
Total Investments in Brazil 6,750,678 7,445,926 1.7
<PAGE>
Colombia Merchandising 25,000 ++Almacenes Exito S.A. 65,652 65,380 0.0
Total Investments in Colombia 65,652 65,380 0.0
Mexico Beverages & Tobacco 35,000 Panamerican Beverages, Inc. (Class A) 991,514 1,636,250 0.4
Holding Company 2,000,000 ++Grupo Financiero Banorte, S.A. de
C.V. (Class B) 2,113,918 2,168,736 0.5
Multi-Industry 600,000 Grupo Carso, S.A. de C.V. 3,448,736 3,066,886 0.7
Total Investments in Mexico 6,554,168 6,871,872 1.6
Total Investments in Latin America 17,117,215 19,479,370 4.4
NORTH
AMERICA
Canada Agriculture 290,000 Viridian, Inc. 3,690,612 3,680,148 0.8
Telecommunications 50,000 Northern Telecom Ltd. 1,474,875 3,287,500 0.8
Total Investments in Canada 5,165,487 6,967,648 1.6
United Banking 120,000 Bank of New York, Inc. (The) 3,130,284 4,305,000 0.9
States 90,000 Barnett Banks, Inc. 2,756,978 3,960,000 0.9
------------ ------------ ------
5,887,262 8,265,000 1.8
Broadcasting & 125,000 ++Mirage Resorts, Inc. 929,000 3,015,625 0.7
Publishing 26,697 TCI Pacific Communications
(Convertible Preferred) 2,393,250 2,322,639 0.5
115,000 Time Warner Inc. 3,948,176 4,686,250 1.0
2 ++Viacom Inc. (Class A) (e) 80 75 0.0
------------ ------------ ------
7,270,506 10,024,589 2.2
Business & Public 25,000 ++Microsoft Corp. 1,039,167 3,921,875 0.9
Services 150,000 ++Molten Metal Technology, Inc. 2,998,185 2,250,000 0.5
65,000 ++Oracle Corporation (c) 491,528 3,185,000 0.7
------------ ------------ ------
4,528,880 9,356,875 2.1
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (In US Dollars)
<CAPTION>
NORTH AMERICA Shares Held/ Value Percent of
(concluded) Industries Face Amount Investments Cost (Note 1a) Net Assets
<S> <S> <C> <C> <C> <C> <C>
United Chemicals 60,000 PPG Industries, Inc. $ 2,314,400 $ 3,675,000 0.8%
States
(concluded) Electrical Equipment 80,000 ++Ultratech Stepper Inc. 1,395,265 1,820,000 0.4
Electronics/ 150,000 ++General Instrument Corp. 3,670,446 3,318,750 0.7
Components 50,000 Intel Corp. 1,180,625 6,337,500 1.4
60,000 Texas Instruments Inc. 2,492,028 3,825,000 0.9
------------ ------------ ------
7,343,099 13,481,250 3.0
Energy Sources 150,000 Enron Oil & Gas Co. 3,098,803 3,993,750 0.9
Food & Household 150,000 Performance Food Group Co. 1,678,096 1,800,000 0.4
Products
Health & Personal 100,000 ++Forest Laboratories, Inc. 4,023,062 3,875,000 0.9
Care 35,000 Merck & Co., Inc. 1,262,400 2,905,000 0.6
50,000 Pfizer, Inc. 2,427,678 4,481,250 1.0
------------ ------------ ------
7,713,140 11,261,250 2.5
Insurance 75,000 Mercury General Corp. 2,626,000 4,275,000 1.0
Machinery & 100,000 Harnischfeger Industries, Inc. 3,640,438 4,437,500 1.0
Equipment
Merchandising 100,000 ++Federated Department Stores, Inc. 3,290,576 3,412,500 0.8
90,000 The Home Depot, Inc. 3,373,925 4,691,250 1.0
100,000 ++Office Depot, Inc. 1,745,375 1,950,000 0.4
------------ ------------ ------
8,409,876 10,053,750 2.2
Oil & Gas 50,000 Transocean Offshore Inc. (d) 2,720,750 3,012,500 0.7
Producers
Railroads 60,000 Illinois Central Corp. 1,688,600 2,032,500 0.5
Telecommunications 125,000 ++Airtouch Communications, Inc. 2,976,403 3,203,125 0.7
Total Investments in the United
States 63,291,518 90,692,089 20.2
Total Investments in North America 68,457,005 97,659,737 21.8
PACIFIC
BASIN/ASIA
<PAGE>
Australia Banking 200,097 National Australia Bank, Ltd. 1,430,366 2,490,517 0.6
Broadcasting & 350,873 News Corp., Ltd. (Ordinary) 1,868,290 1,866,746 0.4
Publishing
Entertainment 1,000,000 ++Sydney Harbour Casino Holdings
Ltd. (Preferred) 1,446,117 1,504,975 0.3
Insurance 107,049 Lend Lease Corp. 1,365,040 1,985,523 0.5
Metals 300,000 WMC Ltd. (a) 1,727,089 1,903,590 0.4
Total Investments in Australia 7,836,902 9,751,351 2.2
Hong Kong Multi-Industry 1,524,228 First Pacific Co., Ltd. 1,266,625 2,119,311 0.5
400,000 Hutchison Whampoa Ltd. 1,949,838 3,091,250 0.7
500,000 Swire Pacific Ltd. 'A' 2,453,484 4,737,114 1.1
------------ ------------ ------
5,669,947 9,947,675 2.3
Real Estate 400,000 Sun Hung Kai Properties, Ltd. 2,242,489 4,966,695 1.1
Utilities--Gas 1,440,000 ++Hong Kong and China Gas Company Ltd. 1,873,089 2,858,954 0.6
120,000 ++Hong Kong and China Gas Company Ltd.
(Warrants) (b) 0 75,665 0.0
------------ ------------ ------
1,873,089 2,934,619 0.6
Total Investments in Hong Kong 9,785,525 17,848,989 4.0
India Machinery & 196,000 ++++Larsen & Toubro Ltd. (GDR)** 3,008,600 2,842,000 0.6
Engineering
Total Investments in India 3,008,600 2,842,000 0.6
Indonesia Construction & 1,880,000 Jaya Real Property 2,924,702 2,406,143 0.5
Housing
Telecommunications 50,800 P.T. Telekomunikasi Indonesia (ADR)* 939,403 1,670,050 0.4
Textiles 1,080,000 P.T. Indorama Synthetics (Foreign) 1,217,976 1,935,154 0.4
Total Investments in Indonesia 5,082,081 6,011,347 1.3
Japan Automobiles 120,000 Toyota Motor Corp. 2,128,963 3,279,149 0.7
Banking 130,000 Bank of Tokyo--Mitsubishi 3,085,819 2,661,453 0.6
US$ 1,000,000 The Mitsubishi Bank, Ltd., 3% due
11/30/2002 (Convertible) 1,000,000 1,101,000 0.2
100,000 Sanwa Bank, Ltd. 1,844,583 1,651,876 0.4
------------ ------------ ------
5,930,402 5,414,329 1.2
<PAGE>
Broadcasting & 300,000 Tokyo Broadcasting System, Inc. 3,736,661 4,876,549 1.1
Publishing
Building Materials 200,000 Sanwa Shutter Corporation 1,848,009 1,599,156 0.4
Cable & Wire 270,000 Sumitomo Electric Industry, Ltd. 2,968,251 3,795,800 0.8
Chemicals 250,000 Asahi Chemical Industry Co. 1,825,928 1,643,089 0.4
Construction & 50,000 Sho-Bond Corp. 1,671,335 1,550,830 0.3
Housing
Data Processing & 120,000 Canon Inc. 2,096,847 2,530,533 0.6
Reproduction
Electrical & 250,000 Hitachi Ltd. 2,636,635 2,328,442 0.5
Electronics 29,000 Keyence Corp. 2,038,471 3,516,387 0.8
200,000 Matsushita Electric Industrial Co. 2,837,637 3,461,910 0.8
85,000 Murata Manufacturing Co., Ltd. 2,448,383 2,905,281 0.6
250,000 NEC Corporation 3,180,362 3,031,368 0.7
150,000 Omron Corp. 2,717,395 2,860,030 0.6
180,000 Sharp Corp. 2,744,465 2,815,218 0.6
90,000 Tokyo Electron Ltd. 3,173,486 2,570,073 0.6
------------ ------------ ------
21,776,834 23,488,709 5.2
Entertainment 70,000 Sony Music Entertainment (Japan) Inc. 3,171,727 2,878,482 0.6
Financial Services 200,000 Daiwa Securities Co., Ltd. 2,519,694 2,161,497 0.5
Insurance 250,000 Tokio Marine & Fire Insurance Co.,
Ltd. 3,142,441 2,767,771 0.6
Machinery & 170,000 Minebea Co., Ltd. 1,436,151 1,451,894 0.3
Engineering 400,000 Mitsubishi Heavy Industries Ltd. 2,988,558 3,268,606 0.7
------------ ------------ ------
4,424,709 4,720,500 1.0
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (In US Dollars)
<CAPTION>
PACIFIC BASIN/
ASIA Shares Value Percent of
(concluded) Industries Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <C> <C> <C> <C>
Japan Merchandising 50,000 Aoyama Trading Co. $ 2,716,597 $ 1,423,425 0.3%
(concluded) 60,000 Ito-Yokado Co., Ltd. 2,604,246 3,031,368 0.7
150,000 Marui Co., Ltd. 2,736,736 2,846,850 0.6
------------ ------------ ------
8,057,579 7,301,643 1.6
<PAGE>
Metals 700,000 Nippon Steel Co. 2,407,627 2,115,807 0.5
Real Estate 250,000 Mitsui Fudosan Co., Ltd. 3,097,952 2,965,469 0.7
Telecommunications 350 DDI Corp. 2,617,101 2,506,370 0.6
307 Nippon Telephone & Telegraph Corp.
(Ordinary) 2,553,690 2,190,352 0.5
------------ ------------ ------
5,170,791 4,696,722 1.1
Wholesale & 250,000 Mitsui & Co. 1,780,475 2,126,351 0.5
International
Trade
Total Investments in Japan 77,756,225 79,912,386 17.8
Malaysia Banking 583,333 Commerce Asset--Holding BHD 1,276,855 4,456,096 1.0
Building Materials 400,000 Sungei Way Holdings BHD 1,589,194 2,343,162 0.5
Telecommunications 300,000 Telekom Malaysia BHD 1,491,009 2,731,051 0.6
Total Investments in Malaysia 4,357,058 9,530,309 2.1
New Zealand Telecommunications 400,000 Telecom Corp. of New Zealand
Ltd. (Class C) (ADR)* 1,278,315 2,107,108 0.5
Total Investments in New Zealand 1,278,315 2,107,108 0.5
Singapore Banking 218,000 Overseas Chinese Banking Corp. 2,202,387 2,641,483 0.6
Broadcasting & 100,000 Singapore Press Holdings Limited 1,476,852 1,888,810 0.4
Publishing
Construction & 250,000 City Development Ltd. 1,562,010 2,209,551 0.5
Housing
Multi-Industry 200,000 Keppel Corp. Ltd. 1,502,011 1,553,813 0.4
Total Investments in Singapore 6,743,260 8,293,657 1.9
South Korea Banking 50,000 Hanil Bank 664,668 330,598 0.1
Construction & 39,170 ++Hyundai Engineering and Construction
Housing Co. 873,042 1,100,995 0.2
<PAGE> 1,698 ++Hyundai Engineering and Construction
Co. (GDR)** 52,005 44,314 0.0
------------ ------------ ------
925,047 1,145,309 0.2
Electronics 46,283 LG Electronics Co. 1,725,155 720,379 0.2
Steel 31,300 Pohang Iron & Steel Co., Ltd. (ADR)* 765,410 629,913 0.1
Utilities 40,000 Korea Electric Power Co. 1,097,115 1,278,958 0.3
Total Investments in South Korea 5,177,395 4,105,157 0.9
Thailand Banking 100,000 Bangkok Bank Public Company Ltd. 1,138,470 1,143,394 0.2
Building Materials 50,000 The Siam Cement Public Co. Ltd.
(Foreign Registered) 1,902,573 1,738,586 0.4
Telecommunications 157,300 Advanced Information Services Inc. 1,779,210 1,835,516 0.4
600,000 Total Access Communication Public
Co. Ltd. 3,787,500 3,870,000 0.9
------------ ------------ ------
5,566,710 5,705,516 1.3
Total Investments in Thailand 8,607,753 8,587,496 1.9
Total Investments in Pacific Basin/
Asia 129,633,114 148,989,800 33.2
WESTERN
EUROPE
Denmark Business & Public 150,000 ISS International Service System
A/S (Class B) 3,289,437 4,149,483 0.9
Services Total Investments in Denmark 3,289,437 4,149,483 0.9
Finland Telecommunications 76,400 Nokia OY AS 'A' 2,163,900 4,248,770 0.9
Total Investments in Finland 2,163,900 4,248,770 0.9
France Banking 20,000 Cetelem S.A. 3,947,067 4,829,420 1.1
Business & Public 80,000 ++Dassault Systemes S.A. 1,834,389 3,828,330 0.8
Services
Cosmetics 33,000 Christian Dior S.A. 2,920,305 4,843,006 1.1
Energy 42,785 Total S.A. (Class B) 2,673,402 3,419,493 0.8
Manufacturing 20,000 Bic S.A. 2,499,848 2,992,557 0.7
Total Investments in France 13,875,011 19,912,806 4.5
<PAGE>
Germany Merchandising 32,000 ++Metro AG 3,124,165 2,684,878 0.6
Multi-Industry 10,000 Mannesmann AG 3,229,897 4,172,358 1.0
100,000 SKW Trostberg AG 2,160,663 2,790,244 0.6
80,000 Veba AG 3,264,237 4,680,325 1.0
------------ ------------ ------
8,654,797 11,642,927 2.6
Recreation 30,000 Adidas AG 1,646,257 2,604,878 0.6
Total Investments in Germany 13,425,219 16,932,683 3.8
Italy Electronics 65,000 ++Saes Getters S.p.A. (Sponsored) 1,105,000 682,500 0.2
Multi-Industry 6,000,000 ++Montedison S.p.A. 3,729,942 4,251,697 0.9
Telecommunications 6,000,000 ++Olivetti Group--Ing. 3,946,434 2,110,014 0.5
Total Investments in Italy 8,781,376 7,044,211 1.6
Netherlands Business & Public 140,000 ++Baan Company N.V. 2,254,885 4,994,200 1.1
Services
Construction & 200,000 Koninklijke Boskalis Westminster N.V. 3,111,972 3,967,517 0.9
Housing
Electrical & 180,000 ++BE Semiconductor Industries N.V.
Electronics (NY Shares) 2,573,753 2,137,500 0.5
115,000 Philips Electronics N.V. 3,839,587 4,649,362 1.0
------------ ------------ ------
6,413,340 6,786,862 1.5
Merchandising 70,700 Koninklijke Ahold N.V. 3,595,653 4,424,901 1.0
Total Investments in the
Netherlands 15,375,850 20,173,480 4.5
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (In US Dollars)
<CAPTION>
WESTERN
EUROPE Shares Value Percent of
(concluded) Industries Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <C> <C> <C> <C>
Norway Automobiles 330,000 ++Sensonor A/S $ 2,555,005 $ 3,160,772 0.7%
Manufacturing 200,000 Tomra Systems A/S 1,907,841 2,959,087 0.7
Total Investments in Norway 4,462,846 6,119,859 1.4
<PAGE>
Poland Food & Beverage 75,718 ++Agros Holdings S.A. 1,272,288 1,832,530 0.4
Total Investments in Poland 1,272,288 1,832,530 0.4
Portugal Building Products 150,500 Cimpor--Cimentos de Portugal, S.A. 3,064,523 3,145,919 0.7
Total Investments in Portugal 3,064,523 3,145,919 0.7
Spain Banking 100,000 Banco Bilbao Vizcaya S.A. 3,858,654 5,057,134 1.1
Total Investments in Spain 3,858,654 5,057,134 1.1
Sweden Automobiles 80,000 Autoliv AB 2,142,137 3,516,353 0.8
Health & Personal 60,000 Astra AB 'B' 1,096,951 2,820,532 0.6
Care
Total Investments in Sweden 3,239,088 6,336,885 1.4
Switzerland Health & Personal 871 Roche Holdings AG 4,203,474 6,703,602 1.5
Care
Total Investments in Switzerland 4,203,474 6,703,602 1.5
United Automobile Parts 350,000 BBA Group PLC 1,888,551 2,047,214 0.5
Kingdom
Banking 250,097 National Westminster Bank PLC 1,993,581 2,894,200 0.6
Broadcasting & 312,500 Carlton Communications PLC
Publishing (Ordinary) 1,292,970 2,636,755 0.6
Electronics 1,250,000 Astec (BSR) PLC 1,943,769 3,361,600 0.8
Energy 479,449 British Petroleum Co. PLC 2,467,392 5,532,214 1.2
Energy Sources 575,000 Enterprise Oil PLC 3,483,980 5,750,437 1.3
Merchandising 700,000 ++Harvey Nichols PLC 3,267,451 4,165,022 0.9
500,000 Next PLC 1,731,357 4,949,956 1.1
------------ ------------ ------
4,998,808 9,114,978 2.0
Multi-Industry 342,950 Siebe PLC 3,253,851 5,473,206 1.2
Telecommunications 1,000,000 Orange PLC 3,025,616 2,975,016 0.7
Total Investments in the United
Kingdom 24,348,518 39,785,620 8.9
Total Investments in Western Europe 101,360,184 141,442,982 31.6
<PAGE>
SHORT-TERM Face
SECURITIES Amount Issue
United Commercial US$ 19,008,000 General Electric Capital Corp.,
States Paper*** 5.70% due 12/02/1996 19,001,981 19,001,981 4.2
10,000,000 MetLife Funding, Inc., 5.24% due
12/12/1996 9,982,533 9,982,533 2.2
12,000,000 Warner-Lambert Company, 5.25% due
12/04/1996 11,993,000 11,993,000 2.7
Total Investments in Short-Term
Securities 40,977,514 40,977,514 9.1
Total Investments $357,545,032 448,549,403 100.1
============
Liabilities in Excess of Other Assets (330,073) (0.1)
------------ ------
Net Assets $448,219,330 100.0%
============ ======
<FN>
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***Commercial Paper is traded on a discount basis; the interest rate
shown is the discount rate paid at the time of purchase by the
Company.
(a)Formerly Western Mining Corp.
(b)Warrants entitle the Company to purchase a predetermined number
of shares of common stock. The purchase price and number of shares
are subject to adjustment under conditions until the expiration
date.
(c)Formerly Oracle Systems Corp.
(d)Formerly Sonat Offshore Drilling Inc.
(e)Shares of Viacom, Inc. (Class A) are exchangeable for convertible
preferred shares of TCI Pacific Communications.
++Non-income producing security.
++++Restricted security as to resale. The value of the Company's
investment in restricted securities was $2,842,000, representing
0.6% of net assets.
Acquisition Value
Issue Date Cost (Note 1a)
Larsen & Toubro Ltd. (GDR) 3/1/1996 $3,008,600 $2,842,000
Total $3,008,600 $2,842,000
========== ==========
<PAGE>
See Notes to Financial Statements.
</TABLE>
PORTFOLIO CHANGES
For the Quarter Ended November 30, 1996
Additions
Almacenes Exito S.A.
BBA Group PLC
Cimpor--Cimentos de Portugal S.A.
Federated Department Stores, Inc.
*Lucent Technologies, Inc.
Montedison S.p.A.
*Tag Heuer International S.A. (ADR)
Deletions
AFLAC, Inc.
AT&T Corp.
Applied Materials, Inc.
Consolidated Rail Corp.
*Lucent Technologies, Inc.
Madeco S.A. (ADR)
Motorola, Inc.
P.T. Indonesian Satellite Corp. (ADR)
Pacificare Health Systems Inc. (Class B)
Repsol S.A.
The Royal Bank of Scotland Group PLC
Sumitomo Metal Industries Co., Ltd.
*Tag Heuer International S.A. (ADR)
Walt Disney Co.
Westaim Corporation
[FN]
*Added and deleted in the same quarter.
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of November 30, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$357,545,032) (Note 1a) $448,549,403
Cash 16,588
Foreign cash (Note 1b) 1,663
Receivables:
Securities sold $ 947,538
Capital shares sold 625,663
Dividends 491,003
Interest 15,000 2,079,204
------------
Prepaid registration fees and other assets (Note 1f) 36,206
------------
Total assets 450,683,064
------------
Liabilities: Payables:
Securities purchased 1,434,334
Investment adviser (Note 2) 349,835
Capital shares redeemed 245,395
Distributor (Note 2) 36,441 2,066,005
------------
Accrued expenses and other liabilities 397,729
------------
Total liabilities 2,463,734
------------
Net Assets: Net assets $448,219,330
============
Net Assets Class A Shares of Common Stock, $0.10 par value, 100,000,000
Consist of: shares authorized $ 2,634,676
Class B Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 307,613
Class C Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 6,320
Class D Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 31,165
Paid-in capital in excess of par 329,781,942
Undistributed net investment income--net 1,827,409
Undistributed realized capital gains on investments and foreign
currency transactions--net 22,630,191
Unrealized appreciation on investments and foreign currency
transactions--net 91,000,014
------------
Net assets $448,219,330
============
<PAGE>
Net Asset Class A--Based on net assets of $398,309,697 and 26,346,760
Value: shares outstanding $ 15.12
============
Class B--Based on net assets of $44,311,020 and 3,076,128
shares outstanding $ 14.40
============
Class C--Based on net assets of $910,585 and 63,197
shares outstanding $ 14.41
============
Class D--Based on net assets of $4,688,028 and 311,649
shares outstanding $ 15.04
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended November 30, 1996
<S> <S> <C> <C>
Investment Income Dividends (net of $694,535 foreign withholding tax) $ 7,958,008
(Notes 1d & 1e): Interest and discount earned 1,635,814
------------
Total income 9,593,822
------------
Expenses: Investment advisory fees (Note 2) $ 4,169,360
Transfer agent fees--Class A (Note 2) 684,912
Account maintenance and distribution fees--Class B (Note 2) 452,751
Custodian fees 303,526
Printing and shareholder reports 134,117
Registration fees (Note 1f) 109,953
Accounting services (Note 2) 104,828
Transfer agent fees--Class B (Note 2) 98,765
Professional fees 80,279
Directors' fees and expenses 37,811
Pricing fees 12,942
Account maintenance fees--Class D (Note 2) 11,226
Transfer agent fees--Class D (Note 2) 8,419
Account maintenance and distribution fees--Class C (Note 2) 7,325
Transfer agent fees--Class C (Note 2) 1,653
Other 17,052
------------
Total expenses 6,234,919
------------
Investment income--net 3,358,903
------------
<PAGE>
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 22,797,724
(Loss) on Foreign currency transactions--net (231,495) 22,566,229
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 32,272,642
(Notes 1b, 1c, Foreign currency transactions--net 650 32,273,292
1e & 3): ------------ ------------
Net realized and unrealized gain on investments and foreign
currency transactions 54,839,521
------------
Net Increase in Net Assets Resulting from Operations $ 58,198,424
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended
November 30,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 3,358,903 $ 1,067,089
Realized gain on investments and foreign currency transactions--net 22,566,229 19,393,315
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 32,273,292 24,547,717
------------ ------------
Net increase in net assets resulting from operations 58,198,424 45,008,121
------------ ------------
Dividends & Investment income--net:
Distributions to Class A -- (177,010)
Shareholders Class D -- (352)
(Note 1g): Realized gain on investments--net:
Class A (17,594,423) (13,259,833)
Class B (2,476,721) (2,030,586)
Class C (26,025) (7,459)
Class D (192,712) (65,148)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (20,289,881) (15,540,388)
------------ ------------
Capital Share Net increase (decrease) in net assets derived from capital
Transactions share transactions 34,818,380 (35,521,768)
(Note 4): ------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in net assets 72,726,923 (6,054,035)
Beginning of year 375,492,407 381,546,442
------------ ------------
End of year* $448,219,330 $375,492,407
============ ============
<FN>
*Undistributed (accumulated) investment income (loss)--
net (Note 1h) $ 1,827,409 $ (1,935,539)
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have
been derived from information provided in the Class A++
financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 13.87 $ 12.82 $ 13.07 $ 11.78 $ 10.95
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .13 .05 .03 .04 .10
Realized and unrealized gain on investments
and foreign currency transactions--net 1.87 1.52 .53 2.07 1.05
-------- -------- -------- -------- --------
Total from investment operations 2.00 1.57 .56 2.11 1.15
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- (.01) (.01) -- (.10)
Realized gain on investments--net (.75) (.51) (.80) (.82) (.22)
-------- -------- -------- -------- --------
Total dividends and distributions (.75) (.52) (.81) (.82) (.32)
-------- -------- -------- -------- --------
Net asset value, end of year $ 15.12 $ 13.87 $ 12.82 $ 13.07 $ 11.78
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 15.20% 12.92% 4.39% 19.16% 10.67%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses 1.37% 1.51% 1.44% 1.43% 1.49%
Net Assets: ======== ======== ======== ======== ========
Investment income (loss)--net .92% .41% .23% .32% (.19%)
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $398,310 $327,270 $330,132 $256,203 $166,947
Data: ======== ======== ======== ======== ========
Portfolio turnover 41.14% 44.64% 40.18% 56.98% 65.93%
======== ======== ======== ======== ========
Average commission rate paid+++ $ .0063 -- -- -- --
======== ======== ======== ======== ========
<PAGE>
<FN>
*Total investment returns exclude the effect of sales loads.
++Based on average shares outstanding during the period.
+++For fiscal years beginning on or after September 1, 1995,
the Company is required to disclose its average commission
rate per share for purchases and sales of equity securities.
The "Average Commission Rate Paid" includes commissions paid
in foreign currencies, which have been converted into US
dollars using the prevailing exchange rate on the date of
the transaction. Such conversions may significantly affect
the rate shown.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
The following per share data and ratios have
been derived from information provided in the Class B++++
financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 13.38 $ 12.50 $ 12.74 $ 11.62 $ 10.82
Operating -------- -------- -------- -------- --------
Performance: Investment loss--net (.02) (.08) (.10) (.08) (.03)
Realized and unrealized gain on investments
and foreign currency transactions--net 1.79 1.47 .52 2.02 1.05
-------- -------- -------- -------- --------
Total from investment operations 1.77 1.39 .42 1.94 1.02
-------- -------- -------- -------- --------
Less distributions from realized gain on
investments--net (.75) (.51) (.66) (.82) (.22)
-------- -------- -------- -------- --------
Net asset value, end of year $ 14.40 $ 13.38 $ 12.50 $ 12.74 $ 11.62
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 13.97% 11.78% 3.32% 17.87% 9.58%
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses 2.40% 2.55% 2.48% 2.46% 2.52%
Net Assets: ======== ======== ======== ======== ========
Investment loss--net (.11%) (.63%) (.80%) (.72%) (1.19%)
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 44,311 $ 44,387 $ 49,647 $ 34,241 $ 22,925
Data: ======== ======== ======== ======== ========
Portfolio turnover 41.14% 44.64% 40.18% 56.98% 65.93%
======== ======== ======== ======== ========
Average commission rate paid++++++++ $ .0063 -- -- -- --
======== ======== ======== ======== ========
<CAPTION>
Class C++++ Class D++++
<PAGE>
The following per share data and For the For the
ratios have been derived from Period Period
information provided in the financial Oct. 21, Oct. 21,
statements. For the Year Ended 1994++ to For the Year Ended 1994++ to
November 30, Nov. 30, November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of
Operating period $ 13.38 $ 12.51 $ 13.08 $ 13.84 $ 12.81 $ 13.39
Performance: -------- -------- -------- -------- -------- --------
Investment income (loss)--net (.01) (.08) (.02) .09 .02 (.01)
Realized and unrealized gain
(loss) on investments and foreign
currency transactions--net 1.79 1.46 (.55) 1.86 1.52 (.57)
-------- -------- -------- -------- -------- --------
Total from investment operations 1.78 1.38 (.57) 1.95 1.54 (.58)
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- -- -- (.00)+++++ --
Realized gain on investments--net (.75) (.51) -- (.75) (.51) --
-------- -------- -------- -------- -------- --------
Total dividends and distributions (.75) (.51) -- (.75) (.51) --
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 14.41 $ 13.38 $ 12.51 $ 15.04 $ 13.84 $ 12.81
======== ======== ======== ======== ======== ========
Total Investment Based on net asset value per share 14.05% 11.69% (4.36%)+++14.86% 12.73% (4.33%)+++
Return:** ======== ======== ======== ======== ======== ========
Ratios to Average Expenses 2.41% 2.55% 3.00%* 1.63% 1.76% 2.23%*
Net Assets: ======== ======== ======== ======== ======== ========
Investment income (loss)--net (.09%) (.63%) (1.31%)* .60% .18% (.67%)*
======== ======== ======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 910 $ 376 $ 177 $ 4,688 $ 3,459 $ 1,591
======== ======== ======== ======== ======== ========
Portfolio turnover 41.14% 44.64% 40.18% 41.14% 44.64% 40.18%
======== ======== ======== ======== ======== ========
Average commission rate paid++++++++ $ .0063 -- -- $ .0063 -- --
======== ======== ======== ======== ======== ========
<PAGE>
<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.
++++++++For fiscal years beginning on or after September 1, 1995,
the Company is required to disclose its average commission
rate per share for purchases and sales of equity securities.
The "Average Commission Rate Paid" includes commissions
paid in foreign currencies, which have been converted into
US dollars using the prevailing exchange rate on the date of
the transaction. Such conversions may significantly affect
the rate shown.
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 options 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.
NOTES TO FINANCIAL STATEMENTS (continued)
(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.
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).
<PAGE>
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.
(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.
<PAGE>
(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 and tax reporting.
Accordingly, current year's permanent book/tax differences of
$404,045 have been reclassified between undistributed net realized
capital gains and undistributed net investment income. 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.
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% --
<PAGE>
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, 1996, 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 $1,252 $19,087
Class D $1,100 $13,781
For the year ended November 30, 1996, MLPF&S received contingent
deferred sales charges of $60,215 and $1,249 relating to
transactions in Class B and Class C Shares, respectively.
In addition, MLPF&S received $31,344 in commissions on the execution
of portfolio security transactions for the Company for the year
ended November 30, 1996.
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, 1996 were $162,097,553 and
$160,137,249, respectively.
Net realized and unrealized gains (losses) as of November 30, 1996
were as follows:
<PAGE>
Realized Unrealized
Gains Gains
(Losses) (Losses)
Long-term investments $ 22,797,724 $ 91,004,371
Short-term investments -- --
Foreign currency transactions (231,495) (4,357)
------------ ------------
Total $ 22,566,229 $ 91,000,014
============ ============
As of November 30, 1996, net unrealized appreciation for Federal
income tax purposes aggregated $91,004,371, of which $104,224,950
related to appreciated securities and $13,220,579 related to
depreciated securities. The aggregate cost of investments at
November 30, 1996 for Federal income tax purposes was $357,545,032.
4. Capital Share Transactions:
Net increase (decrease) in net assets derived from capital share
transactions was $34,818,380 and ($35,521,768) for the years ended
November 30, 1996 and November 30, 1995, respectively.
NOTES TO FINANCIAL STATEMENTS (concluded)
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended November 30, 1996 Shares Amount
Shares sold 11,176,887 $ 157,434,230
Shares issued to shareholders
in reinvestment of distributions 1,233,289 16,242,414
------------- -------------
Total issued 12,410,176 173,676,644
Shares redeemed (9,655,805) (136,577,975)
------------- -------------
Net increase 2,754,371 $ 37,098,669
============= =============
Class A Shares for the Year Dollar
Ended November 30, 1995 Shares Amount
<PAGE>
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 B Shares for the Year Dollar
Ended November 30, 1996 Shares Amount
Shares sold 617,667 $ 8,295,124
Shares issued to shareholders in
reinvestment of distributions 174,046 2,205,170
------------- -------------
Total issued 791,713 10,500,294
Shares redeemed (1,011,647) (13,729,276)
Automatic conversion of shares (20,731) (275,360)
------------- -------------
Net decrease (240,665) $ (3,504,342)
============= =============
Class B Shares for the Year Ended Dollar
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)
============= =============
Class C Shares for the Year Dollar
Ended November 30, 1996 Shares Amount
Shares sold 54,247 $ 725,543
Shares issued to shareholders in
reinvestment of distributions 1,898 24,054
------------- -------------
Total issued 56,145 749,597
Shares redeemed (21,017) (286,099)
------------- -------------
Net increase 35,128 $ 463,498
============= =============
<PAGE>
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 D Shares for the Year Ended Dollar
November 30, 1996 Shares Amount
Shares sold 1,072,031 $ 14,751,733
Shares issued to shareholders in
reinvestment of distributions 13,662 179,386
Automatic conversion of shares 19,948 275,360
------------- -------------
Total issued 1,105,641 15,206,479
Shares redeemed (1,043,928) (14,445,924)
------------- -------------
Net increase 61,713 $ 760,555
============= =============
Class D Shares for the Year Ended Dollar
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
============= =============
<PAGE>
5. Commitments:
On November 30, 1996, the Company had entered into foreign exchange
contracts under which it had agreed to purchase and sell various
foreign currencies with approximate values of $271,000 and $947,000,
respectively.
6. Subsequent Event:
On December 1, 1996, the Fund's Board of Directors declared an
ordinary income dividend in the amount of $0.228687 per Class A
Share, $0.073642 per Class B Share, $0.108171 per Class C Share and
$0.192609 per Class D Share and a long-term capital gain
distribution in the amount of $0.684245 per share for all four
classes of shares, payable on December 30, 1996, to shareholders of
record as of December 19, 1996.
<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, 1996, 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, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Global Holdings, Inc. as of November 30, 1996, 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.
<PAGE>
Deloitte & Touche LLP
Princeton, New Jersey
January 8, 1997
</AUDIT-REPORT>
