MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Semi-Annual Report
May 31, 1998
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 5/31/98
Percent of
Ten Largest Industries Net Assets
Banking 11.3%
Software--Computer 7.7
Retail Specialty 7.3
Electronics 6.7
Chemicals 5.8
Insurance 5.3
Multi-Industry 5.0
Communications Equipment 4.8
Pharmaceuticals 4.0
Electrical Equipment 2.9
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
SAP AG (Preferred) Germany 3.9%
Siebe PLC United Kingdom 2.4
Home Depot, Inc. United States 2.3
Capita Group PLC United Kingdom 2.3
Mercury General Corp. United States 2.3
Pfizer, Inc. United States 2.2
Stone Container Corporation United States 2.1
Akzo Nobel N.V. Netherlands 2.0
SKW Trostberg AG Germany 2.0
The Royal Bank of Scotland Group
PLC United Kingdom 2.0
Merrill Lynch Global Holdings, Inc., May 31, 1998
DEAR SHAREHOLDER
For the quarter ended May 31, 1998, the total returns for Merrill
Lynch Global Holdings, Inc.'s Class A, Class B, Class C and Class D
Shares were +4.24%, +4.01%, +4.03% and +4.19%, respectively. The
Fund outperformed the unmanaged Morgan Stanley Capital International
World Index, which had a total return of +3.88%. (Complete
performance information can be found on pages 4 and 5 of this report
to shareholders.)
Early in the May quarter, we started to restructure the portfolio in
an effort to improve overall investment returns. For some time we
have anticipated that business and social conditions in the
developing countries of Asia would not be significantly improving in
the near future. This has negative implications for industrial and
commodity-oriented companies, including energy companies. One such
implication is a slowing of global real economic growth resulting
from the recessions in the developing countries of Asia as well as
in Japan. Consequently, in the energy sector we eliminated holdings
in Philip Services Corp., Global Industries Ltd., Transocean
Offshore Inc., Yacimientos Petroliferos Fiscales S.A. (YPF),
Enterprise Oil PLC, Fred Olsen Energy ASA and PTT Exploration and
Production Public Co. In the basic steel industry sector, we
eliminated our positions in Ispat International N.V. and Kennametal,
Inc. because of our concerns about shortfalls in earnings as real
growth on a global basis is reduced by the recessions in major
developing economies in Asia.
In addition, large steel producers in Asia are likely to take market
share from producers in other countries as a result of the rapid and
steep depreciation of some of the Asian currencies. After a review
of the companies and local economies, we eliminated all of the
equity holdings in Thailand, Malaysia and Indonesia. Fortunately,
the stock markets of these countries and most of the eliminated
holdings had risen to recent high stock price levels in March 1998
when we were liquidating the positions. Consequently, we
significantly reduced the portfolio's exposures to Asian companies,
as well as basic industry and energy companies, during March.
We added seven companies to the portfolio during the May quarter.
These were SAP AG, Microsoft Corporation, National Westminster Bank
PLC, Royal & Sun Alliance Insurance Group PLC, Cap Gemini S.A.,
Groupe Danone S.A. and Sprint Corporation.
SAP AG is the largest holding in the portfolio. In our opinion, this
German software firm is the leading company in what we anticipate to
be one of the largest and most rapidly growing markets over the next
five years. Business organizations of all sizes, all over the globe,
appear to be moving their operational systems onto networked
business applications where tens of thousands of employees,
suppliers and customers can communicate over either the public
telecommunication systems or the Internet to carry on their
business. We added Microsoft Corporation because of the rapid growth
the company is likely to experience as it gains market share in the
large-scale enterprise computer software market, while maintaining a
healthy share of the personal computer operational and applications
software markets. We purchased shares of Cap Gemini S.A. in France
since this organization is one of the global leaders in technology
systems consulting and is growing rapidly. We added National
Westminster Bank PLC and Royal & Sun Alliance Insurance Group PLC as
attractively valued investments where their respective managements
are working to improve returns by restructuring their businesses.
Also, we anticipate that these companies will be involved in mergers
and acquisitions activity in the United Kingdom as the financial
services industries are rationalized, in a manner similar to what
has happened in the United States over the last 15 years. Groupe
Danone S.A. in France is a leading food and beverage manufacturer
and distributor. Management is doing an outstanding job of improving
rates of return and earnings growth by restructuring the company, in
our view. Finally, Sprint Corporation is an attractively valued long
distance telecommunications and digital cellular services company.
In Conclusion
We plan to work steadily toward improving the returns and risk
profile of Merrill Lynch Global Holdings, Inc. We believe that
significant progress was made during the May quarter by reducing the
portfolio's exposure to companies in Asia and to companies in the
energy and industrial sectors that may experience declines in
earnings relative to expectations. We appreciate your investment in
Merrill Lynch Global Holdings, Inc., and we look forward to updating
you on our progress in future shareholder reports.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Lawrence R. Fuller)
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
July 2, 1998
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
Lawrence R. Fuller, Senior Vice President and
Portfolio Manager
Norman R. Harvey, Senior Vice President
Philip L. Kirstein, Senior Vice President
Donald C. Burke, Vice President
Gerald M. Richard, Treasurer
Philip M. Mandel, 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.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
Merrill Lynch Global Holdings, Inc., May 31, 1998
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. Figures shown in the "Average Annual Total
Return" tables assume reinvestment of all dividends and capital
gains distributions at net asset value on the ex-dividend date.
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.
<TABLE>
Recent
Performance
Results*
<CAPTION>
Ten Years/
12 Month 3 Month Since Inception
Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares +11.02% +4.24% +170.88%
ML Global Holdings, Inc. Class B Shares + 9.93 +4.01 +140.64
ML Global Holdings, Inc. Class C Shares + 9.90 +4.03 + 44.18
ML Global Holdings, Inc. Class D Shares +10.73 +4.19 + 48.31
World Stock Index** +20.02 +3.88 +181.14/+163.35/+74.48
<FN>
*Investment results shown for each of the Company's classes of
shares do not reflect sales charges; results shown would be lower if
a sales charge was included. The Company's total reinvestment
returns are based on changes in net asset values for the periods
shown, and assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date. The
Company's ten-year/since inception dates are: Class A Shares,ten
years ended 5/31/98; Class B Shares, 10/21/88; and Class C and Class
D Shares, 10/21/94.
**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. Ten years/since
inception total returns are: for the ten years ended 5/31/98; from
10/31/88 to 5/31/98; and from 10/31/94 to 5/31/98, respectively.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/98 +18.31% +12.10%
Five Years Ended 3/31/98 +12.48 +11.27
Ten Years Ended 3/31/98 +10.33 + 9.73
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/98 +17.06% +13.06%
Five Years Ended 3/31/98 +11.30 +11.30
Inception (10/21/88) through 3/31/98 + 9.62 + 9.62
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/98 +17.05% +16.05%
Inception (10/21/94) through 3/31/98 +10.88 +10.88
[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*
Year Ended 3/31/98 +18.02% +11.83%
Inception (10/21/94) through 3/31/98 +11.78 +10.05
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Holdings, Inc., May 31, 1998
<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> <S> <C> <C> <C>
Argentina Banking 146,875 Banco de Galicia y Buenos
Aires S.A. (ADR)* $ 3,084,280 $ 3,010,938 0.7%
Multi-Industry 278,810 Compania Naviera Perez Companc
S.A.C.F.I.M.F.A. 1,023,485 1,536,981 0.4
Total Investments in Argentina 4,107,765 4,547,919 1.1
Brazil Forest Products 100,000 Aracruz Celulose S.A. (ADR)* 1,835,000 1,350,000 0.3
Telecommuni- 30,000,000 Telecommunicacoes Brasileiras
cations S.A.--Telebras PN (Preferred) 1,069,928 3,182,332 0.8
Total Investments in Brazil 2,904,928 4,532,332 1.1
Mexico Chemicals 150,000 DESC, Sociedad de Fomento
Industrial, S.A. de C.V. (ADR)* 4,366,491 3,393,750 0.8
Financial 2,000,000 ++Grupo Financiero Banorte, S.A.
Services de C.V. (Class B) 2,113,918 2,723,250 0.6
Total Investments in Mexico 6,480,409 6,117,000 1.4
Panama Banking 75,000 Banco Latinoamericano de
Exportaciones, S.A. (E Shares) 3,704,425 2,512,500 0.6
Total Investments in Panama 3,704,425 2,512,500 0.6
Total Investments in Latin America 17,197,527 17,709,751 4.2
MIDDLE
EAST
Israel Communications 150,000 ++NICE--Systems Ltd. (ADR)* 3,331,379 5,446,875 1.3
Equipment
Total Investments in the Middle East 3,331,379 5,446,875 1.3
NORTH
AMERICA
Canada Chemicals 300,000 Agrium, Inc. 4,041,373 4,249,175 1.0
Communications 20,000 Northern Telecom Ltd. 294,975 1,280,000 0.3
Equipment
Total Investments in Canada 4,336,348 5,529,175 1.3
United States Banking 120,000 Bank of New York, Inc. (The) 3,130,284 7,335,000 1.7
95,000 Northern Trust Corporation 3,777,776 6,697,500 1.6
65,000 Wachovia Corporation 4,173,125 5,204,063 1.2
------------ ------------ ------
11,081,185 19,236,563 4.5
Communications 97,500 ++Cisco Systems, Inc. 3,206,875 7,361,250 1.7
Equipment
Electronics 85,000 Intel Corp. 1,087,344 6,066,875 1.4
90,000 Texas Instruments Inc. 2,012,563 4,623,750 1.1
------------ ------------ ------
3,099,907 10,690,625 2.5
Environmental 200,000 ++US Filter Corp. 6,297,223 6,087,500 1.4
Control
Insurance 150,000 Mercury General Corp. 3,010,895 9,571,875 2.3
80,000 PMI Group, Inc. (The) 4,385,425 6,015,000 1.4
------------ ------------ ------
7,396,320 15,586,875 3.7
Medical 50,000 ++Boston Scientific Corp. 2,291,520 3,187,500 0.8
Technology 100,000 Johnson & Johnson 5,281,813 6,906,250 1.6
------------ ------------ ------
7,573,333 10,093,750 2.4
Packaging 500,000 ++Stone Container Corporation 6,133,680 8,875,000 2.1
Pharmaceuticals 25,000 Bristol-Myers Squibb Co. 2,432,138 2,687,500 0.6
90,000 Pfizer, Inc. 2,529,031 9,433,125 2.2
------------ ------------ ------
4,961,169 12,120,625 2.8
Retail 150,000 ++Federated Department Stores, Inc. 4,921,701 7,771,875 1.8
Retail 110,000 CVS Corporation 5,633,409 7,720,625 1.8
Specialty 125,000 Home Depot, Inc. 3,653,625 9,820,313 2.3
200,000 ++OfficeMax, Inc. 3,112,630 3,287,500 0.8
450,000 ++PETsMART Inc. 6,002,962 4,443,750 1.1
------------ ------------ ------
18,402,626 25,272,188 6.0
Software-- 25,000 ++Microsoft Corporation 2,272,500 2,120,313 0.5
Computer
Telecommuni- 60,000 Sprint Corporation 4,260,474 4,305,000 1.0
cations
Total Investments in the
United States 79,606,993 129,521,564 30.4
Total Investments in North America 83,943,341 135,050,739 31.7
PACIFIC BASIN/
ASIA
Australia Broadcasting & 351,883 News Corp., Ltd. (Ordinary) 1,873,092 2,171,479 0.5
Publishing
Total Investments in Australia 1,873,092 2,171,479 0.5
Hong Kong Multi-Industry 400,000 Hutchison Whampoa Ltd. 1,949,838 2,090,727 0.5
Total Investments in Hong Kong 1,949,838 2,090,727 0.5
Japan Broadcasting & 300,000 Tokyo Broadcasting System, Inc. 3,736,661 3,733,747 0.9
Publishing
Computers 300,000 NEC Corporation 3,767,865 3,055,475 0.7
60,000 Tokyo Electron Ltd. 1,883,701 1,906,963 0.5
------------ ------------ ------
5,651,566 4,962,438 1.2
Electrical 200,000 Matsushita Electric Industrial Co. 2,837,637 3,134,932 0.7
Equipment 250,000 Sumitomo Electric Industry, Ltd. 2,791,441 2,613,045 0.6
------------ ------------ ------
5,629,078 5,747,977 1.3
Electronics 30,000 Keyence Corp. 2,162,440 3,616,729 0.9
90,000 Murata Manufacturing Co., Ltd. 2,616,519 2,606,906 0.6
30,000 Sony Corp. 2,723,742 2,535,394 0.6
------------ ------------ ------
7,502,701 8,759,029 2.1
Insurance 200,000 Tokio Marine & Fire
Insurance Co., Ltd. 2,445,116 1,895,406 0.4
Machinery & 500,000 Mitsubishi Heavy Industries Ltd. 3,654,177 1,740,826 0.4
Equipment
Machinery & 350,000 Minebea Co., Ltd. 2,942,184 3,592,531 0.8
Machine Tools
</TABLE>
Merrill Lynch Global Holdings, Inc., May 31, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
PACIFIC BASIN/ Shares Value Percent of
ASIA (concluded) Industries Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Japan Merchandising 40,000 Ito-Yokado Co., Ltd. $ 1,760,352 $ 1,993,643 0.5%
(concluded) 150,000 Marui Co., Ltd. 2,736,736 2,302,442 0.5
------------ ------------ ------
4,497,088 4,296,085 1.0
Photography 100,000 Canon Inc. 1,758,792 2,383,704 0.6
Real Estate 200,000 Mitsui Fudosan Co., Ltd. 2,474,245 1,619,474 0.4
Telecommunications 400 Nippon Telephone & Telegraph
Corp. (Ordinary) 3,217,188 3,293,846 0.8
Total Investments in Japan 43,508,796 42,025,063 9.9
Singapore Banking 380,000 Overseas Chinese Banking Corp. 3,284,321 1,510,460 0.4
Construction & 330,000 City Development Ltd. 2,201,466 1,193,365 0.3
Housing
Newspaper/ 242,440 Singapore Press Holdings Limited 2,976,641 1,985,313 0.5
Publishing
Total Investments in Singapore 8,462,428 4,689,138 1.2
Total Investments in the
Pacific Basin/Asia 55,794,154 50,976,407 12.1
WESTERN
EUROPE
Denmark Computers 100,000 ++Olicom A/S 3,069,952 2,862,500 0.7
Total Investments in Denmark 3,069,952 2,862,500 0.7
Finland Communications 100,000 Nokia OY AS 'A' 2,382,226 6,498,662 1.5
Equipment
Total Investments in Finland 2,382,226 6,498,662 1.5
France Electronics 70,000 ++ST Microelectronics (NY
Registered Shares)(a) 4,033,757 5,416,250 1.3
Food 15,000 Groupe Danone S.A. 3,569,363 4,043,675 1.0
Information 50,000 Cap Gemini S.A. 5,924,235 7,471,553 1.8
Processing
Oil--Related 50,000 Societe Nationale Elf Aquitane S.A. 4,845,082 6,952,811 1.6
Software-- 180,000 Dassault Systemes S.A. 2,382,131 8,403,614 2.0
Computer
Total Investments in France 20,754,568 32,287,903 7.7
Germany Banking 70,000 Deutsche Bank AG 4,697,032 6,033,670 1.4
Chemicals 210,000 SKW Trostberg AG 5,676,684 8,543,771 2.0
Machinery & 19,600 Heidelberger Druckmaschinen AG 1,052,231 1,708,126 0.4
Equipment
Multi-Industy 110,000 Veba AG 5,056,239 7,234,568 1.7
Software--Computer 30,000 SAP AG (Preferred) 13,035,644 16,666,667 3.9
Total Investments in Germany 29,517,830 40,186,802 9.4
Italy Retail Specialty 125,000 Gucci Group N.V. 8,151,212 5,671,875 1.3
Total Investments in Italy 8,151,212 5,671,875 1.3
Netherlands Chemicals 41,000 Akzo Nobel N.V. 5,917,636 8,580,636 2.0
Electrical 70,000 Philips Electronics N.V. 2,440,144 6,662,516 1.6
Equipment
Software-- 120,000 ++Baan Company N.V. 1,283,764 5,564,299 1.3
Computer
Total Investments in the
Netherlands 9,641,544 20,807,451 4.9
Portugal Building 200,000 Cimpor--Cimentos de Portugal S.A. 4,062,517 7,666,173 1.8
Products
Finance 170,000 BPI--SGPS S.A. (Registered Shares) 3,235,660 6,893,528 1.6
Total Investments in Portugal 7,298,177 14,559,701 3.4
Spain Services 400,000 Prosegur Compania de Seguridad S.A. 4,176,481 5,060,782 1.2
Total Investments in Spain 4,176,481 5,060,782 1.2
Sweden Environmental 325,000 Munters AB 3,401,427 3,821,330 0.9
Control
Total Investments in Sweden 3,401,427 3,821,330 0.9
Switzerland Pharmaceuticals 500 Roche Holdings Ltd. 2,907,780 5,151,136 1.2
Total Investments in Switzerland 2,907,780 5,151,136 1.2
United Kingdom Automobile Parts 911,944 BBA Group PLC 5,114,591 7,930,169 1.9
Banking 385,000 National Westminster Bank
PLC (Ordinary) 7,320,642 7,028,747 1.7
500,000 Royal Bank of Scotland Group
PLC (The) 5,132,385 8,434,855 2.0
------------ ------------ ------
12,453,027 15,463,602 3.7
Building 611,111 Berkeley Group PLC (The) 6,564,040 7,726,964 1.8
Computer 1,100,000 Capita Group PLC 5,091,189 9,744,950 2.3
Services
Electronics 2,100,000 Astec (BSR) PLC 3,743,542 3,220,581 0.8
Insurance 500,000 Royal & Sun Alliance
Insurance Group PLC 6,672,402 5,298,296 1.2
Multi-Industry 399,999 Siebe PLC 4,107,799 10,017,385 2.4
Total Investments in the
United Kingdom 43,746,590 59,401,947 14.1
Total Investments in
Western Europe 135,047,787 196,310,089 46.3
<CAPTION>
SHORT-TERM Face
SECURITIES Amount Issue
<S> <S> <C> <S> <C> <C> <C>
United States Commercial US$ 18,439,000 General Motors Acceptance Corp.,
Paper** 5.69% due 6/01/1998 18,433,171 18,433,171 4.3
Total Investments in
Short-Term Securities 18,433,171 18,433,171 4.3
Total Investments $313,747,359 423,927,032 99.9
------------
Other Assets Less Liabilities 544,705 0.1
------------ ------
Net Assets $424,471,737 100.0%
============ ======
<FN>
*American Depositary Receipts (ADR).
**Commercial Paper is 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.
(a)Formerly known as SGS-Thomson Microelectronics N.V.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., May 31, 1998
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of May 31, 1998
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$313,747,359)
(Note 1a) $423,927,032
Cash 391
Receivables:
Dividends $ 1,392,853
Capital shares sold 452,799 1,845,652
------------
Prepaid registration fees and other assets (Note 1f) 26,247
------------
Total assets 425,799,322
------------
Liabilities: Payables:
Capital shares redeemed 535,062
Investment adviser (Note 2) 345,473
Distributor (Note 2) 59,962 940,497
------------
Accrued expenses and other liabilities 387,088
------------
Total liabilities 1,327,585
------------
Net Assets: Net assets $424,471,737
============
Net Assets Class A Shares of Common Stock, $0.10 par value,
Consist of: 100,000,000 shares authorized $ 2,295,078
Class B Shares of Common Stock, $0.10 par value,
100,000,000 shares authorized 446,851
Class C Shares of Common Stock, $0.10 par value,
100,000,000 shares authorized 45,924
Class D Shares of Common Stock, $0.10 par value,
100,000,000 shares authorized 69,609
Paid-in capital in excess of par 296,467,529
Accumulated distributions in excess of investment
income--net (Note 1g) (885,887)
Undistributed realized capital gains on investments and foreign
currency transactions--net 15,841,967
Unrealized appreciation on investments and foreign currency
transactions--net 110,190,666
------------
Net assets $424,471,737
============
Net Asset Class A--Based on net assets of $343,858,613 and 22,950,784
Value: shares outstanding $ 14.98
============
Class B--Based on net assets of $63,711,748 and 4,468,514
shares outstanding $ 14.26
============
Class C--Based on net assets of $6,519,390 and 459,244
shares outstanding $ 14.20
============
Class D--Based on net assets of $10,381,986 and 696,086
shares outstanding $ 14.91
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended May 31, 1998
<S> <S> <C> <C>
Investment Income Dividends (net of $316,911 foreign withholding tax) $ 3,159,453
(Notes 1d & 1e): Interest and discount earned 712,372
------------
Total income 3,871,825
------------
Expenses: Investment advisory fees (Note 2) $ 2,115,404
Transfer agent fees--Class A (Note 2) 462,833
Account maintenance and distribution fees--Class B (Note 2) 328,970
Custodian fees 121,049
Transfer agent fees--Class B (Note 2) 98,442
Printing and shareholder reports 83,426
Accounting services (Note 2) 43,040
Registration fees (Note 1f) 37,838
Professional fees 34,740
Account maintenance and distribution fees--Class C (Note 2) 31,699
Directors' fees and expenses 19,313
Transfer agent fees--Class D (Note 2) 12,213
Account maintenance fees--Class D (Note 2) 11,302
Transfer agent fees--Class C (Note 2) 9,824
Pricing fees 7,553
Other 7,679
------------
Total expenses 3,425,325
------------
Investment income--net 446,500
------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 16,172,017
(Loss) on Foreign currency transactions--net (313,114) 15,858,903
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 36,360,792
(Notes 1b, 1c, Foreign currency transactions--net 72,956 36,433,748
1e & 3): ------------ ------------
Net realized and unrealized gain on investments and
foreign currency transactions 52,292,651
------------
Net Increase in Net Assets Resulting from Operations $ 52,739,151
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., May 31, 1998
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
May 31, November 30,
Increase (Decrease) in Net Assets: 1998 1997
<S> <S> <C> <C>
Operations: Investment income (loss)--net $ 446,500 $ (1,351,232)
Realized gain on investments and foreign
currency transactions--net 15,858,903 50,941,976
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 36,433,748 (17,243,096)
------------ ------------
Net increase in net assets resulting from operations 52,739,151 32,347,648
------------ ------------
Dividends & Investment income--net:
Distributions to Class A -- (472,191)
Shareholders Class C -- (24)
(Note 1g): Class D -- (3,962)
In excess of investment income--net:
Class A -- (2,756,330)
Class C -- (141)
Class D -- (23,124)
Realized gain on investments--net:
Class A (39,878,951) (20,709,718)
Class B (7,314,996) (2,278,771)
Class C (664,387) (49,977)
Class D (999,340) (245,755)
------------ ------------
Net decrease in net assets resulting from
dividends and distributions to shareholders (48,857,674) (26,539,993)
------------ ------------
Capital Share Net decrease in net assets derived from capital
Transactions share transactions (5,590,774) (27,845,951)
(Note 4): ------------ ------------
Net Assets: Total decrease in net assets (1,709,297) (22,038,296)
Beginning of period 426,181,034 448,219,330
------------ ------------
End of period $424,471,737 $426,181,034
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios Class A++
have been derived from information For the Six
provided in the financial statements. Months Ended
May 31, For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.05 $ 15.12 $ 13.87 $ 12.82 $ 13.07
Operating --------- --------- --------- --------- ---------
Performance: Investment income (loss)--net .03 (.02) .13 .05 .03
Realized and unrealized gain on
investments and foreign currency
transactions--net 1.66 .86 1.87 1.52 .53
--------- --------- --------- --------- ---------
Total from investment operations 1.69 .84 2.00 1.57 .56
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net -- (.02) -- (.01) (.01)
In excess of investment income--net -- (.10) -- -- --
Realized gain on investments--net (1.76) (.79) (.75) (.51) (.80)
--------- --------- --------- --------- ---------
Total dividends and distributions (1.76) (.91) (.75) (.52) (.81)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 14.98 $ 15.05 $ 15.12 $ 13.87 $ 12.82
========= ========= ========= ========= =========
Total Investment Based on net asset value per share 13.31%+++ 6.04% 15.20% 12.92% 4.39%
Return:** ========= ========= ========= ========= =========
Ratios to Average Expenses 1.44%* 1.39% 1.37% 1.51% 1.44%
Net Assets: ========= ========= ========= ========= =========
Investment income (loss)--net .39%* (.12%) .92% .41% .23%
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 343,859 $ 344,940 $ 398,310 $ 327,270 $ 330,132
Data: ========= ========= ========= ========= =========
Portfolio turnover 17.45% 54.50% 41.14% 44.64% 40.18%
========= ========= ========= ========= =========
Average commission rate paid++++ $ .0227 $ .0103 $ .0063 -- --
========= ========= ========= ========= =========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
++++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.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., May 31, 1998
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class B++++
The following per share data and ratios For the
have been derived from information Six Months
provided in the financial statements. Ended
May 31, For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.31 $ 14.40 $ 13.38 $ 12.50 $ 12.74
Operating -------- -------- -------- -------- --------
Performance: Investment loss--net (.04) (.17) (.02) (.08) (.10)
Realized and unrealized gain on
investments and foreign currency
transactions--net 1.59 .84 1.79 1.47 .52
-------- -------- -------- -------- --------
Total from investment operations 1.55 .67 1.77 1.39 .42
-------- -------- -------- -------- --------
Less distributions from realized
gain on investments--net (1.60) (.76) (.75) (.51) (.66)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.26 $ 14.31 $ 14.40 $ 13.38 $ 12.50
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 12.77%+++ 4.98% 13.97% 11.78% 3.32%
Return:*** ======== ======== ======== ======== ========
Ratios to Average Expenses 2.47%* 2.42% 2.40% 2.55% 2.48%
Net Assets: ======== ======== ======== ======== ========
Investment loss--net (.64%)* (1.11%) (.11%) (.63%) (.80%)
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 63,712 $ 66,791 $ 44,311 $ 44,387 $ 49,647
Data: ======== ======== ======== ======== ========
Portfolio turnover 17.45% 54.50% 41.14% 44.64% 40.18%
======== ======== ======== ======== ========
Average commission rate paid+++++ $ .0227 $ .0103 $ .0063 -- --
======== ======== ======== ======== ========
<CAPTION>
Class C++++
For the
The following per share data and ratios For the Period
have been derived from information Six Months Oct. 21,
provided in the financial statements. Ended 1994++ to
May 31, For the Year Ended November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.28 $ 14.41 $ 13.38 $ 12.51 $ 13.08
Operating -------- -------- -------- -------- --------
Performance: Investment loss--net (.04) (.17) (.01) (.08) (.02)
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net 1.59 .83 1.79 1.46 (.55)
-------- -------- -------- -------- --------
Total from investment operations 1.55 .66 1.78 1.38 (.57)
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- --** -- -- --
In excess of investment income--net -- --** -- -- --
Realized gain on investments--net (1.63) (.79) (.75) (.51) --
-------- -------- -------- -------- --------
Total dividends and distributions (1.63) (.79) (.75) (.51) --
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.20 $ 14.28 $ 14.41 $ 13.38 $ 12.51
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 12.75%+++ 4.96% 14.05% 11.69% (4.36%)+++
Return:*** ======== ======== ======== ======== ========
Ratios to Average Expenses 2.48%* 2.43% 2.41% 2.55% 3.00%*
Net Assets: ======== ======== ======== ======== ========
Investment loss--net (.63%)* (1.09%) (.09%) (.63%) (1.31%)*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 6,519 $ 5,964 $ 910 $ 376 $ 177
Data: ======== ======== ======== ======== ========
Portfolio turnover 17.45% 54.50% 41.14% 44.64% 40.18%
======== ======== ======== ======== ========
Average commission rate paid+++++ $ .0227 $ .0103 $ .0063 -- --
======== ======== ======== ======== ========
<CAPTION>
Class D++++
The following per share data and ratios For the Period
have been derived from information Six Months Oct. 21,
provided in the financial statements. Ended 1994++ to
May 31, For the Year Ended November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.97 $ 15.04 $ 13.84 $ 12.81 $ 13.39
Operating -------- -------- -------- -------- --------
Performance: Investment income (loss)--net .01 (.06) .09 .02 (.01)
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net 1.66 .87 1.86 1.52 (.57)
-------- -------- -------- -------- --------
Total from investment operations 1.67 .81 1.95 1.54 (.58)
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- (.01) -- --** --
In excess of investment income--net -- (.08) -- -- --
Realized gain on investments--net (1.73) (.79) (.75) (.51) --
-------- -------- -------- -------- --------
Total dividends and distributions (1.73) (.88) (.75) (.51) --
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.91 $ 14.97 $ 15.04 $ 13.84 $ 12.81
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 13.17%+++ 5.80% 14.86% 12.73% (4.33%)+++
Return:*** ======== ======== ======== ======== ========
Ratios to Average Expenses 1.69%* 1.64% 1.63% 1.76% 2.23%*
Net Assets: ======== ======== ======== ======== ========
Investment income (loss)--net .16%* (.39%) .60% .18% (.67%)*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 10,382 $ 8,486 $ 4,688 $ 3,459 $ 1,591
Data: ======== ======== ======== ======== ========
Portfolio turnover 17.45% 54.50% 41.14% 44.64% 40.18%
======== ======== ======== ======== ========
Average commission rate paid+++++ $ .0227 $ .0103 $ .0063 -- --
======== ======== ======== ======== ========
<FN>
*Annualized.
**Amount is less than $.01 per share.
***Total investment returns exclude the effects of sales loads.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
+++++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>
Merrill Lynch Global Holdings, Inc., May 31, 1998
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. These unaudited financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature.
The Company offers four classes of shares under the Merrill Lynch
Select Pricing SM System. Shares of Class A and Class D are sold
with a front-end sales charge. Shares of Class B and Class C may be
subject to a contingent deferred sales charge. All classes of shares
have identical voting, dividend, liquidation and other rights and
the same terms and conditions, except that Class B, Class C and
Class D Shares bear certain expenses related to the account
maintenance of such shares, and Class B and Class C Shares also bear
certain expenses related to the distribution of such shares. Each
class has exclusive voting rights with respect to matters relating
to its account maintenance and distribution expenditures. The
following is a summary of significant accounting policies followed
by the Company.
(a) Valuation of securities--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. 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.
(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).
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
financial 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.
(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 dates. Dividends from foreign securities where the ex-
dividend date may have passed are subsequently recorded when the
Company has determined 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. Distributions in
excess of net investment income are due primarily to differing tax
treatments for post-October losses.
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 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 six months ended May 31, 1998, 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 $377 $5,101
Class D $169 $2,649
For the six months ended May 31, 1998, MLPF&S received contingent
deferred sales charges of $70,109 and $436 relating to transactions
in Class B and Class C Shares, respectively.
In addition, MLPF&S received $22,910 in commissions on the execution
of portfolio security transactions for the Company for the six
months ended May 31, 1998.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., acts as the Company's transfer agent.
Merrill Lynch Global Holdings, Inc., May 31, 1998
NOTES TO FINANCIAL STATEMENTS (concluded)
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, MLFDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended May 31, 1998 were $71,507,813 and
$125,312,834, respectively.
Net realized gains (losses) for the six months ended May 31, 1998,
and net unrealized gains as of May 31, 1998 were as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $ 16,172,314 $110,179,673
Short-term investments (297) --
Foreign currency transactions (313,114) 10,993
------------ ------------
Total $ 15,858,903 $110,190,666
============ ============
As of May 31, 1998, net unrealized appreciation for Federal income
tax purposes aggregated $110,179,673, of which $129,886,898 related
to appreciated securities and $19,707,225 related to depreciated
securities. The aggregate cost of investments at May 31, 1998 for
Federal income tax purposes was $313,747,359.
4. Capital Share Transactions:
A net decrease in net assets derived from capital share transactions
was $5,590,774 and $27,845,951 for the six months ended May 31, 1998
and for the year ended November 30, 1997, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Six Months Dollar
Ended May 31, 1998 Shares Amount
Shares sold 2,356,191 $ 33,543,431
Shares issued to shareholders in
reinvestment of distributions 2,864,459 36,521,854
------------ -------------
Total issued 5,220,650 70,065,285
Shares redeemed (5,190,359) (74,029,821)
------------ -------------
Net increase (decrease) 30,291 $ (3,964,536)
============ =============
Class A Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 10,593,236 $ 157,598,934
Shares issued to shareholders in
reinvestment of dividends and
distributions 1,586,229 22,175,485
------------ -------------
Total issued 12,179,465 179,774,419
Shares redeemed (15,605,732) (236,649,109)
------------ -------------
Net decrease (3,426,267) $ (56,874,690)
============ =============
Class B Shares for the Six Months Dollar
Ended May 31, 1998 Shares Amount
Shares sold 468,999 $ 6,108,572
Shares issued to shareholders in
reinvestment of distributions 528,258 6,439,464
------------ -------------
Total issued 997,257 12,548,036
Automatic conversion of shares (223,767) (3,050,906)
Shares redeemed (972,257) (13,318,523)
------------ -------------
Net decrease (198,767) $ (3,821,393)
============ =============
Class B Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 4,144,750 $ 57,686,337
Shares issued to shareholders in
reinvestment of distributions 148,413 1,993,180
------------ -------------
Total issued 4,293,163 59,679,517
Automatic conversion of shares (126,229) (1,871,700)
Shares redeemed (2,575,781) (37,239,859)
------------ -------------
Net increase 1,591,153 $ 20,567,958
============ =============
Class C Shares for the Six Months Dollar
Ended May 31, 1998 Shares Amount
Shares sold 154,676 $ 2,035,357
Shares issued to shareholders in
reinvestment of distributions 50,102 608,239
------------ -------------
Total issued 204,778 2,643,596
Shares redeemed (163,299) (2,212,239)
------------ -------------
Net increase 41,479 $ 431,357
============ =============
Class C Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 590,713 $ 8,199,909
Shares issued to shareholders in
reinvestment of distributions 3,548 47,542
------------ -------------
Total issued 594,261 8,247,451
Shares redeemed (239,693) (3,447,217)
------------ -------------
Net increase 354,568 $ 4,800,234
============ =============
Class D Shares for the Six Months Dollar
Ended May 31, 1998 Shares Amount
Shares sold 145,869 $ 1,989,950
Shares issued to shareholders in
reinvestment of dividends and
distributions 72,194 917,589
Automatic conversion of shares 214,215 3,050,906
------------ -------------
Total issued 432,278 5,958,445
Shares redeemed (302,962) (4,194,647)
------------ -------------
Net increase 129,316 $ 1,763,798
============ =============
Class D Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 898,998 $ 13,541,614
Shares issued to shareholders in
reinvestment of dividends and
distributions 18,140 252,873
Automatic conversion of shares 120,997 1,871,700
------------ -------------
Total issued 1,038,135 15,666,187
Shares redeemed (783,014) (12,005,640)
------------ -------------
Net increase 255,121 $ 3,660,547
============ =============
PORTFOLIO CHANGES
For the Quarter Ended May 31, 1998
Additions
Cap Gemini S.A.
Groupe Danone S.A.
Microsoft Corporation
National Westminster Bank PLC (Ordinary)
Royal & Sun Alliance Insurance Group
PLC
SAP AG (Preferred)
Sprint Corporation
Deletions
Bangkok Bank Public Company Ltd.
CITIC Pacific Ltd.
Commerce Asset-Holding BHD
CommScope Inc.
Enterprise Oil PLC
Fred Olsen Energy ASA
Global Industries Ltd.
Ispat International N.V.
Kennametal, Inc.
Land & General BHD (Ordinary)
Nichiei Co. Ltd.
P.T. Jaya Real Property
PTT Exploration and Production Public
Co. (PTTEP)
Philip Services Corp.
Sensonor A/S
Siam Cement Public Co. Ltd. (The)(Foreign
Registered)
Sime Darby BHD
Sungei Way Holdings BHD
Total Access Communication Public Co. Ltd.
Transocean Offshore Inc.
Yacimientos Petroliferos Fiscales S.A.
(YPF)(ADR)
