MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Quarterly Report
August 31, 1999
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.
Officers and
Directors
Terry K. Glenn, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Lawrence R. Fuller, Senior Vice President and
Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Robert Harris, Secretary
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, NY 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
Merrill Lynch Global Holdings, Inc., August 31, 1999
DEAR SHAREHOLDER
For the quarter ended August 31, 1999, total returns for Merrill
Lynch Global Holdings, Inc.'s Class A, Class B, Class C and Class D
Shares were +3.11%, +2.79%, +2.81% and +2.99%, respectively.
(Results shown do not reflect sales charges and would be lower if
sales charges were included. Complete performance information can be
found on pages 4 and 5 of this report to shareholders.) The Fund
underperformed the unmanaged Morgan Stanley Capital International
(MSCI) World Stock Index as a result of the Fund's relatively modest
investment exposure in the Japanese, South Korean and other Asian
stock markets. In addition, the Fund's limited exposure to the
energy industry penalized comparative performance since the shares
of energy companies around the world rose with the increase in
energy prices. We continue to be concerned about the breadth and
duration of the domestic economic recovery in Japan as well as the
relatively high stock valuations in comparison to similar companies
in Europe and the United States.
During the August quarter, a significant number of the Fund's
holdings in the telecommunications services, banking, insurance,
technology and broadcasting industries contributed positively to
the Fund's performance. Specific companies in these industries that
produced particularly strong stock price appreciation included
Vodafone AirTouch PLC, Nippon Telegraph & Telephone Corporation,
Sprint Corp. (PCS Group), GTE Corporation, Equant, Tele Danmark A/S,
Deutsche Bank AG, Commerzbank AG, Dresdner Bank AG, Aegon NV, Axa,
Cisco Systems, Inc., CBS Corporation and Clear Channel
Communications, Inc.
Early in July we started to shift the Fund's assets into European
equities, which in our view appear much more reasonably priced than
the Asian and US stock markets. In addition, we reduced the Fund's
industry weightings in the banking and financial, insurance,
telecommunications and pharmaceuticals sectors, while increasing the
Fund's exposure to the communications equipment, computer,
electronics, chemicals, energy, multi-industry, oil services,
automobiles and transportation industries.
We are assuming that the rate of growth of consumer spending in the
United States will continue to slow. We had significantly reduced
the industry weightings in the US retail and technology industries
during the February 28, 1999 quarter. These reductions improved the
relative investment performance of the Fund until the August quarter
when investors seemed to believe that a cyclical growth recovery was
taking place in the personal computer business and significantly
raised the valuations of both Intel Corporation and Microsoft
Corporation, which are relatively small holdings. We anticipate an
export-led recovery of manufacturing activity and profitability and
manufacturing employment in Europe during the remainder of 1999 and
into the year 2000.
In Conclusion
We thank you for your investment in Merrill Lynch Global Holdings,
Inc., and we look forward to reviewing our investment outlook and
strategy with you in our upcoming annual report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Lawrence R. Fuller)
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
September 29, 1999
PORTFOLIO INFORMATION
Worldwide Investments
As of 8/31/99
Percent of
Ten Largest Industries Net Assets
Telecommunications 15.7%
Banking & Financial 12.2
Insurance 10.1
Pharmaceuticals 7.3
Communications Equipment 5.3
Electronics 4.1
Chemicals 3.2
Information Processing 2.8
Diversified 2.6
Electrical Equipment 2.4
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Cisco Systems, Inc. United States 4.0%
Minnesota Mining and Manufacturing
Company (3M) United States 2.6
COLT Telecom Group PLC United Kingdom 2.6
Vodafone AirTouch PLC United Kingdom 2.3
SAP AG (Systeme, Anwendungen,
Produkte in der Datenverarbeitung)
(Preferred) Germany 2.2
Siemens AG Germany 2.2
Pfizer Inc. United States 2.0
Merck & Co., Inc. United States 2.0
Deutsche Bank AG (Registered) Germany 1.9
Equant Netherlands 1.8
Merrill Lynch Global Holdings, Inc., August 31, 1999
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 "Recent Performance
Results" and "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
As of August 31, 1999 Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* +28.70% +3.11% +145.85%
ML Global Holdings, Inc. Class B Shares* +27.41 +2.79 +121.83
ML Global Holdings, Inc. Class C Shares* +27.27 +2.81 + 57.92
ML Global Holdings, Inc. Class D Shares* +28.24 +2.99 + 64.17
World Stock Index** +33.05 +4.12 +171.67/+105.53
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included. Total
investment 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 periods are ten years for Class A
& Class B Shares and from 10/21/94 for Class C &Class D Shares.
**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-year/since
inception total returns are for the ten years ended 8/31/99 and
from 10/31/94, respectively.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/99 +12.79% + 6.87%
Five Years Ended 6/30/99 +11.62 +10.42
Ten Years Ended 6/30/99 +10.70 +10.10
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/99 +11.68% + 7.83%
Five Years Ended 6/30/99 +10.49 +10.49
Ten Years Ended 6/30/99 + 9.57 + 9.57
[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 6/30/99 +11.66% +10.70%
Inception (10/21/94) through 6/30/99 +10.59 +10.59
[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 6/30/99 +12.49% + 6.58%
Inception (10/21/94) through 6/30/99 +11.46 +10.19
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Holdings, Inc., August 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
NORTH Shares Percent of
AMERICA Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Canada Communications 4,000 Nortel Networks Corporation $ 29,498 $ 164,250 0.1%
Equipment
Telecommunications 50,000 AT&T Canada Inc. 1,450,921 3,025,000 1.2
Total Investments in Canada 1,480,419 3,189,250 1.3
United Advertising 30,000 The Interpublic Group of Companies,
States Inc. 1,126,680 1,188,750 0.5
Banking & Financial 16,000 Bank One Corporation 796,321 642,000 0.2
20,000 Bank of America Corporation 1,260,168 1,210,000 0.5
38,000 Citigroup Inc. 1,410,639 1,688,625 0.7
7,000 Mellon Bank Corporation 251,664 233,625 0.1
------------ ------------ ------
3,718,792 3,774,250 1.5
Broadcasting/ 26,000 AMFM Inc. 937,761 1,280,500 0.5
Radio & 30,000 CBS Corporation 814,682 1,410,000 0.6
Television 5,000 Clear Channel Communications, Inc. 205,714 350,312 0.1
30,000 Infinity Broadcasting Corp. (Class A) 849,300 811,875 0.3
------------ ------------ ------
2,807,457 3,852,687 1.5
Chemicals 15,000 E.I. du Pont de Nemours and Company 821,143 950,625 0.4
Communications 26,000 3Com Corporation 720,508 643,500 0.3
Equipment 150,000 Cisco Systems, Inc. 1,579,792 10,162,500 4.0
9,000 Copper Mountain Networks, Inc. 694,936 1,055,250 0.4
------------ ------------ ------
2,995,236 11,861,250 4.7
Computers 15,000 Compaq Computer Corporation 538,763 347,812 0.1
7,000 Dell Computer Corporation 143,852 341,687 0.1
20,000 International Business Machines
Corporation 1,873,125 2,491,250 1.0
20,500 Sun Microsystems, Inc. 1,526,614 1,628,469 0.7
------------ ------------ ------
4,082,354 4,809,218 1.9
Cosmetics 7,000 The Gillette Company 305,374 326,375 0.1
Diversified 70,000 Minnesota Mining and Manufacturing
Company (3M) 5,373,682 6,615,000 2.6
Electrical Equipment 41,000 General Electric Company 4,135,191 4,604,813 1.8
Electronics 4,000 Intel Corporation 55,375 328,750 0.1
22,000 Texas Instruments Incorporated 1,240,047 1,805,375 0.8
------------ ------------ ------
1,295,422 2,134,125 0.9
Energy 8,000 Duke Energy Corporation 456,962 460,000 0.2
55,000 El Paso Energy Corporation 2,106,324 2,010,937 0.8
42,000 Enron Corp. 1,775,033 1,758,750 0.7
8,000 UtiliCorp United Inc. 206,404 185,500 0.1
------------ ------------ ------
4,544,723 4,415,187 1.8
Entertainment 50,000 The Walt Disney Company 1,740,385 1,387,500 0.6
Financial Services 1,500 Federal Home Loan Mortgage Association 92,600 77,250 0.0
2,500 Federal National Mortgage Association 177,680 155,313 0.1
15,000 Franklin Resources, Inc. 547,463 539,063 0.3
3,000 Morgan Stanley Dean Witter & Co. 296,576 257,438 0.1
5,013 T. Rowe Price Associates, Inc. 188,698 153,523 0.1
------------ ------------ ------
1,303,017 1,182,587 0.6
Food Merchandising 5,000 Albertson's, Inc. 253,183 239,687 0.1
10,000 The Kroger Co. 256,034 231,250 0.1
14,000 Safeway Inc. 767,402 651,875 0.2
------------ ------------ ------
1,276,619 1,122,812 0.4
Household Products 3,000 Kimberly-Clark Corporation 145,901 170,813 0.1
6,000 The Procter & Gamble Company 552,226 595,500 0.2
------------ ------------ ------
698,127 766,313 0.3
Information 30,000 America Online, Inc. 2,283,087 2,739,375 1.1
Processing 5,000 First Data Corporation 214,908 220,000 0.1
11,000 General Motors Corporation (Class H) 665,818 566,500 0.2
------------ ------------ ------
3,163,813 3,525,875 1.4
Insurance 3,000 Aetna Inc. 252,469 233,250 0.1
8,750 American International Group, Inc. 624,271 811,016 0.3
40,000 The Hartford Financial Services
Group, Inc. 2,387,123 1,817,500 0.7
------------ ------------ ------
3,263,863 2,861,766 1.1
Medical Technology 27,000 Abbott Laboratories 1,292,963 1,171,125 0.5
13,000 Boston Scientific Corporation 306,631 441,187 0.2
5,000 Johnson & Johnson 287,800 511,250 0.2
------------ ------------ ------
1,887,394 2,123,562 0.9
Oil Services 17,000 Baker Hughes Incorporated 610,957 578,000 0.2
7,000 Diamond Offshore Drilling, Inc. 281,619 267,750 0.1
20,000 Schlumberger Limited 1,271,618 1,335,000 0.6
------------ ------------ ------
2,164,194 2,180,750 0.9
Pharmaceuticals 6,000 Amgen Inc. 376,975 498,750 0.2
25,000 Bristol-Myers Squibb Company 1,643,119 1,759,375 0.7
74,000 Merck & Co., Inc. 4,989,548 4,971,875 2.0
135,000 Pfizer Inc. 1,437,756 5,096,250 2.0
------------ ------------ ------
8,447,398 12,326,250 4.9
Restaurants 40,000 McDonald's Corporation 1,351,190 1,655,000 0.7
Retail Specialty 3,000 Abercrombie & Fitch Co. (Class A) 70,965 104,625 0.0
15,000 CVS Corporation 545,150 625,312 0.3
4,000 The Gap, Inc. 111,908 156,500 0.1
30,340 Lowe's Companies, Inc. 1,641,418 1,372,885 0.5
40,000 Staples, Inc. 957,333 867,500 0.3
75,000 Walgreen Co. 2,196,391 1,739,063 0.7
------------ ------------ ------
5,523,165 4,865,885 1.9
</TABLE>
Merrill Lynch Global Holdings, Inc., August 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Shares Percent of
(concluded) Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Retail Stores 20,000 The TJX Companies, Inc. $ 648,274 $ 577,500 0.2%
States
(concluded) Semiconductors 10,000 Applied Materials, Inc. 303,438 710,000 0.3
Software--Computer 3,000 Microsoft Corporation 136,350 277,500 0.1
Telecommunications 67,500 AT&T Corp. 3,748,428 3,037,500 1.2
10,000 GTE Corporation 647,770 686,250 0.3
20,000 MCI WorldCom Inc. 1,490,000 1,513,750 0.6
90,000 Sprint Corp. (FON Group) 2,831,576 3,993,750 1.6
5,000 Sprint Corp. (PCS Group) 168,394 298,750 0.1
------------ ------------ ------
8,886,168 9,530,000 3.8
Travel & Lodging 42,000 Carnival Corporation 1,880,142 1,876,875 0.7
Total Investments in the
United States 73,879,591 91,502,455 36.5
Total Investments in North America 75,360,010 94,691,705 37.8
PACIFIC
BASIN/ASIA
Australia Broadcasting & 100,000 The News Corporation Limited 708,451 730,510 0.3
Publishing
Telecommunications 400,000 Cable & Wireless Optus Limited 908,615 872,784 0.3
Total Investments in Australia 1,617,066 1,603,294 0.6
Japan Leisure 10,000 Sony Corporation 847,524 1,295,214 0.5
Photography 100,000 Canon, Inc. 1,758,792 2,922,908 1.2
Retail Stores 10,000 Ito-Yokado Co., Ltd. 456,260 736,208 0.3
Telecommunications 400 Nippon Telegraph & Telephone
Corporation (NTT) 3,217,188 4,493,972 1.8
Transportation 450 East Japan Railway Company 2,665,415 2,725,155 1.1
Total Investments in Japan 8,945,179 12,173,457 4.9
Total Investments in the Pacific
Basin/Asia 10,562,245 13,776,751 5.5
WESTERN
EUROPE
Denmark Telecommunications 34,000 Tele Danmark A/S 1,979,727 1,922,405 0.7
Total Investments in Denmark 1,979,727 1,922,405 0.7
Finland Communications 14,000 Nokia Oyj 196,985 1,167,604 0.5
Equipment
Total Investments in Finland 196,985 1,167,604 0.5
France Banking & Financial 16,000 Credit Lyonnais 426,746 489,845 0.2
Electrical Equipment 10,000 Alstom 340,815 336,557 0.1
Electronics 37,000 STMicroelectronics 2,573,428 2,454,978 1.0
Food 3,000 Danone 713,873 741,735 0.3
Information 10,000 Cap Gemini SA 1,053,374 1,715,513 0.7
Processing
Insurance 20,000 Axa 2,689,377 2,487,229 1.0
Total Investments in France 7,797,613 8,225,857 3.3
Germany Automobile 30,000 DaimlerChrysler AG 2,639,686 2,261,309 0.9
Banking & 70,000 Commerzbank AG 2,004,376 2,505,176 1.0
Financial 70,000 Deutsche Bank AG (Registered) 4,697,032 4,781,265 1.9
60,000 Dresdner Bank AG 2,280,538 2,761,711 1.1
------------ ------------ ------
8,981,946 10,048,152 4.0
Chemicals 50,000 BASF AG 2,293,696 2,264,477 0.9
50,000 Bayer AG 2,207,298 2,172,103 0.9
------------ ------------ ------
4,500,994 4,436,580 1.8
Electronics 65,000 Siemens AG 5,275,291 5,462,192 2.2
Insurance 9,000 Allianz AG (Registered Shares) 2,896,335 2,368,674 1.0
Multi-Industry 18,000 Mannesmann AG 1,878,089 2,759,178 1.1
20,000 Veba AG 1,087,690 1,273,174 0.5
------------ ------------ ------
2,965,779 4,032,352 1.6
Retail Stores 67,000 Metro AG 3,817,826 3,840,742 1.5
Software--Computer 14,000 SAP AG (Systeme, Anwendungen,
Produkte in der Datenverarbeitung)
(Preferred) 6,083,300 5,616,324 2.2
Total Investments in Germany 37,161,157 38,066,325 15.2
Ireland Banking & Financial 177,000 Allied Irish Banks PLC 3,169,530 2,287,078 0.9
Total Investments in Ireland 3,169,530 2,287,078 0.9
Italy Banking & Financial 515,000 Banca di Roma 748,050 699,180 0.3
Insurance 80,000 Assicurazioni Generali 3,170,802 2,698,369 1.1
450,000 Istituto Nazionale delle
Assicurazioni (INA) SpA 1,038,639 1,083,148 0.4
------------ ------------ ------
4,209,441 3,781,517 1.5
Total Investments in Italy 4,957,491 4,480,697 1.8
Netherlands Chemicals 29,000 Akzo Nobel NV 1,320,073 1,348,604 0.6
9,000 DSM NV 1,166,794 1,057,970 0.4
------------ ------------ ------
2,486,867 2,406,574 1.0
Household Products 26,786 Unilever NV 'A' 2,163,644 1,862,085 0.7
Insurance 45,700 Aegon NV 5,110,216 3,994,727 1.6
48,000 ING Groep NV 2,656,337 2,629,960 1.1
------------ ------------ ------
7,766,553 6,624,687 2.7
Leisure 13,200 Koninklijke (Royal) Philips
Electronics NV 647,241 1,359,383 0.5
Telecommunications 52,200 Equant 1,950,528 4,615,256 1.8
Total Investments in the Netherlands 15,014,833 16,867,985 6.7
</TABLE>
Merrill Lynch Global Holdings, Inc., August 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN
EUROPE Shares Percent of
(concluded) Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Portugal Telecommunications 36,300 Portugal Telecom SA (Registered
Shares) $ 1,451,315 $ 1,517,164 0.6%
Total Investments in Portugal 1,451,315 1,517,164 0.6
Spain Banking & Financial 100,000 Banco Santander Central Hispano, SA 963,726 1,003,971 0.4
Information 100,000 Telefonica Publicidad e
Processing Informacion, SA 1,886,182 2,290,869 0.9
Total Investments in Spain 2,849,908 3,294,840 1.3
Switzerland Food 1,366 Nestle SA (Registered Shares) 2,459,614 2,695,578 1.1
Insurance 3,525 Zurich Allied AG 2,424,159 2,068,192 0.8
Pharmaceuticals 2,055 Novartis AG (Registered Shares) 3,692,058 2,956,639 1.2
Total Investments in Switzerland 8,575,831 7,720,409 3.1
United Banking & 140,000 Barclays PLC 3,609,402 4,161,353 1.7
Kingdom Financial 285,000 Lloyds TSB Group PLC 3,984,525 3,940,311 1.6
200,000 National Westminster Bank PLC 3,802,931 4,109,939 1.6
------------ ------------ ------
11,396,858 12,211,603 4.9
Electrical 245,000 Invensys PLC 1,175,773 1,249,812 0.5
Equipment
Insurance 85,000 CGU PLC 1,270,984 1,265,316 0.5
454,545 Royal & Sun Alliance Insurance
Group PLC 6,672,402 3,783,044 1.5
------------ ------------ ------
7,943,386 5,048,360 2.0
Pharmaceuticals 15,000 AstraZeneca Group PLC 626,668 595,282 0.2
40,000 Glaxo Wellcome PLC 1,307,197 1,051,424 0.4
115,000 SmithKline Beecham PLC 1,577,426 1,497,565 0.6
------------ ------------ ------
3,511,291 3,144,271 1.2
Telecommunications 300,000 COLT Telecom Group PLC 3,632,411 6,531,236 2.6
55,000 Energis PLC 1,576,473 1,408,594 0.6
285,000 Vodafone AirTouch PLC 5,258,915 5,742,185 2.3
------------ ------------ ------
10,467,799 13,682,015 5.5
Total Investments in the
United Kingdom 34,495,107 35,336,061 14.1
Total Investments in Western Europe 117,649,497 120,886,425 48.2
SHORT-TERM Face
SECURITIES Amount Issue
Commercial $ 5,000,000 Block Financial Corp., 5.28% due
Paper* 9/13/1999 4,991,200 4,991,200 2.0
8,763,000 General Motors Acceptance Corp.,
5.56% due 9/01/1999 8,763,000 8,763,000 3.5
US Government 8,000,000 Federal National Mortgage Association,
Agency 5.20% due 9/17/1999 7,981,511 7,981,511 3.2
Obligations*
Total Investments in Short-Term
Securities 21,735,711 21,735,711 8.7
Total Investments $225,307,463 251,090,592 100.2
============
Liabilities in Excess of Other Assets (416,545) (0.2)
------------ ------
Net Assets $250,674,047 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $222,841,007 and
15,639,122 shares outstanding $ 14.25
============
Class B--Based on net assets of $18,273,658 and
1,377,947 shares outstanding $ 13.26
============
Class C--Based on net assets of $1,017,553 and
77,182 shares outstanding $ 13.18
============
Class D--Based on net assets of $8,541,829 and
604,866 shares outstanding $ 14.12
============
<FN>
*Commercial Paper and certain US Government Agency Obligations are
traded on a discount basis; the interest rates shown reflect the
discount rates paid at the time of purchase by the Company.
</TABLE>
PORTFOLIO CHANGES
For the Quarter Ended August 31, 1999
Additions
3Com Corporation
Akzo Nobel NV
BASF AG
Baker Hughes Incorporated
Bayer AG
Copper Mountain Networks, Inc.
Credit Lyonnais
DSM NV
DaimlerChrysler AG
Diamond Offshore Drilling, Inc.
Duke Energy Corporation
East Japan Railway Company
General Motors Corporation (Class H)
Portugal Telecom SA (Registered Shares)
STMicroelectronics
Schlumberger Limited
Siemens AG
Sun Microsystems, Inc.
Telefonica Publicidad e Informacion, SA
UtiliCorp United Inc.
