MERRILL
LYNCH
GLOBAL
RESOURCES
TRUST
Annual Report July 31, 1994
This report is not authorized for use as an offer of sale
or a solicitation of an offer to buy shares of the Trust
unless accompanied or preceded by the Trust'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.
Merrill Lynch
Global Resources Trust
Box 9011
Princeton, New Jersey
08543-9011
<PAGE>
MERRILL LYNCH GLOBAL RESOURCES TRUST
DEAR SHAREHOLDER
The natural resource sector environment was fairly
positive during the Trust's fiscal year ended July 31,
1994. Strong demand for basic resources in both
the United States and developing countries, along
with evidence of a European economic recovery,
helped push commodity prices in industrial sectors
such as base metals, chemicals, steels and paper
products, higher over the period. Oil prices were
more volatile, but still ended the period up sharply
from their lows in March. This general rise in com-
modity prices was one of the factors that prompted
the US Federal Reserve Board to raise short-term inter-
est rates to head off inflation. This action unsettled
bond markets worldwide and put a damper on
stock market performance in the first half of 1994.
However, natural resource-related shares generally
outperformed the market during the period. For the
one-year period ended July 31, 1994, the total returns
for the Trust's Class A Shares and Class B Shares
were +13.69% and +12.52%, respectively. (Complete
performance information, including average annual
total returns, can be found on pages 3 and 4 of this
report to shareholders.)
<PAGE>
Fiscal Year in Review
Our decision to focus investments on the industrial
side of the business cycle, including the base metal,
chemical and paper and forest product sectors,
enhanced performance during the fiscal year. These
sectors were among the prime beneficiaries of
increasing economic activity worldwide. Strong global
demand and improved capacity utilization rates gave
companies in these industries greater pricing flexi-
bility and improved their earnings outlook. Share
prices responded positively to this scenario. However,
there was some share price weakness, especially in
the forest products sector, after US interest rates
began rising in February. Also, the Trust's reduced
weighting in energy-related stocks benefited its
performance through March 1994 as share prices in
this sector generally declined as oil prices weakened.
Within the energy sector, our holding in Bridge Oil
Ltd., an Australian-based oil producer, contributed
strongly to the Trust's performance after the com-
pany received a takeover offer from the US energy
company, Parker & Parsley Petroleum Co.
Investment Activities
During the July quarter, we continued to purchase a
number of attractively valued energy-related stocks
including The Louisiana Land and Exploration Co. in
the United States, Ranger Oil, Ltd. in Canada and
Ampolex Ltd. in Australia. The industry's supply/
demand balance continues to improve. Demand is
being pushed higher by increased levels of worldwide
economic activity. Meanwhile, supply is tightening
as the Organization of Petroleum Exporting Countries
(OPEC) has maintained reasonable discipline in
adhering to its quotas, and the growth in non-OPEC
supplies is slowing. These factors should support a
more positive pricing environment in the industry.
<PAGE>
We maintained significant exposure in the paper and
forest products sector with the purchase of two
Scandinavian pulp and paper companies, Mo Och
Domsjo AB Co. in Sweden and Metsa-Serla OY in
Finland. The pricing tone in this industry has
improved dramatically since the beginning of 1994.
Wood product prices, including structural panels
and lumber, remain above last year's levels despite
investor concerns over the effects of recent interest
rate increases on demand from the housing market.
Wood product demand, particularly within the home
repair and remodeling segment of the market, remains
strong while timber supply continues to be restricted
by environmental pressures worldwide. More
recently, prices are strengthening in other parts of the
paper industry, including linerboard, newsprint and
market pulp. These areas suffered from severe over-
capacities because of high investment activity by
the industry in the late 1980s. However, reduced
inventories, increased demand and improved capacity
utilization rates, along with the fact that little
significant new capacity is expected to start up over
the next few years, have combined to give the industry
greater pricing flexibility. Many of these price
increases are just beginning to take effect and there-
fore should have an increasingly positive impact on
company earnings. The Trust's holdings of diversified
paper companies should be prime beneficiaries of
this improving industry outlook.
In Conclusion
Looking ahead, we remain optimistic about the out-
look for investments in the natural resource sector as
the trend towards more synchronized worldwide
economic growth supports the demand for basic
resources. A combination of firm commodity prices,
improved capacity utilization rates and reduced cost
structures should lead to an improving earnings
outlook, particularly for many of the economically
sensitive natural resource companies.
<PAGE>
We thank you for your investment in Merrill Lynch
Global Resources Trust, and we look forward to
reviewing our outlook and strategy with you again in
our next report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Peter A. Lehman)
Peter A. Lehman
Vice President and Portfolio Manager
August 19, 1994
OFFICERS AND TRUSTEES
Arthur Zeikel, President and Trustee
Donald Cecil, Trustee
M. Colyer Crum, Trustee
Edward H. Meyer, Trustee
Jack B. Sunderland, Trustee
J. Thomas Touchton, Trustee
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Donald C. Burke, Vice President
Peter A. Lehman, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, New York 10015
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
PERFORMANCE DATA
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of Class
A and Class B Shares will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
Total Return Based on a $10,000 Investment
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 1.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/94 +9.39% +2.28%
Five Years Ended 6/30/94 +7.03 +5.60
Inception (10/24/88) +6.98 +5.73
through 6/30/94
[FN]
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/94 +8.30% +4.30%
Five Years Ended 6/30/94 +5.94 +5.94
Inception (8/2/85)
through 6/30/94 +8.68 +8.68
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to
0% after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
PERFORMANCE DATA (concluded)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/24/88--12/31/88 $12.50 $12.00 $0.049 $0.139 - 2.48%
1989 12.00 14.89 -- 0.378 +27.39
1990 14.89 14.36 0.039 0.415 - 0.68
1991 14.36 13.94 0.786 0.471 + 5.91
1992 13.94 12.89 -- 0.238 - 5.87
1993 12.89 15.19 -- 0.138 +19.01
1/1/94--7/31/94 15.19 15.84 -- -- + 4.28
------ ------
Total $0.874 Total $1.779
Cumulative total return as of 7/31/94: +52.67%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the ex-dividend date, and do not include sales charge;
results would be lower if sales charge was included.
</TABLE>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C>
8/2/85--12/31/85 $10.00 $ 9.99 -- -- - 0.10%
1986 9.99 12.75 $0.280 $0.110 +32.37
1987 12.75 13.61 1.978 0.181 +21.22
1988 13.61 12.00 0.340 0.206 - 7.86
1989 12.00 14.89 -- 0.230 +26.09
1990 14.89 14.37 0.039 0.245 - 1.70
1991 14.37 13.96 0.786 0.305 + 4.79
1992 13.96 12.92 -- 0.090 - 6.82
1993 12.92 15.17 -- 0.049 +17.83
1/1/94--7/31/94 15.17 15.72 -- -- + 3.63
------ ------
Total $3.423 Total $1.416
Cumulative total return as of 7/31/94: +118.25%**
<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>
Recent Performance Results*
12 Month 3 Month
7/31/94 4/30/94 7/31/93 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Resources Trust Class A Shares $15.84 $15.20 $14.07 +12.58% +4.21%
ML Global Resources Trust Class B Shares 15.72 15.13 14.02 +12.13 +3.90
ML Global Resources Trust Class A Shares--Total Return +13.69(1) +4.21
ML Global Resources Trust Class B Shares--Total Return +12.52(2) +3.90
<FN>
*Investment results shown the for 3-month and 12-month periods are before the deduction of any sales charges.
(1)Percent change includes reinvestment of $0.138 per share ordinary income dividends.
(2)Percent change includes reinvestment of $0.049 per share ordinary income dividends.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Value Percent of
Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Chemical 150,000 Air Products and Chemicals, Inc. $ 6,531,950 $ 7,200,000 2.8%
640,000 Asahi Chemical Industry Co., Ltd. 4,707,315 4,988,010 1.9
42,000 du Pont (E.I.) de Nemours & Co. 2,292,524 2,493,750 1.0
157,500 Hanna (M.A.) Co. 3,130,050 4,173,750 1.6
------------ ------------ ------
16,661,839 18,855,510 7.3
Diversified 157,000 Coastal Corp. 4,019,253 4,925,875 1.9
Companies 345,000 Cyprus Amax Minerals Co. 9,974,501 10,781,250 4.2
110,000 Mitchell Energy & Development Corp. (Class A) 2,303,358 2,076,250 0.8
175,000 Mitchell Energy & Development Corp. (Class B) 3,666,183 3,237,500 1.3
500,000 Occidental Petroleum Corp. 9,585,073 9,937,500 3.9
------------ ------------ ------
29,548,368 30,958,375 12.1
Gold 828,100 Newcrest Mining Ltd. 3,817,001 3,774,808 1.5
101,622 Newmont Mining Corp. 4,349,170 4,014,069 1.6
190,000 Placer Dome Inc. 4,703,434 3,942,500 1.5
------------ ------------ ------
12,869,605 11,731,377 4.6
Integrated Oil 41,000 Amoco Corp. 2,293,335 2,454,875 1.0
Companies-- 200,000 Unocal Corp. 5,792,080 5,800,000 2.2
Domestic ------------ ------------ ------
8,085,415 8,254,875 3.2
<PAGE>
Integrated Oil 1,230,000 British Petroleum Co. PLC 6,552,656 7,835,746 3.1
Companies-- 132,000 Societe Nationale Elf Aquitaine (ADR)* 4,687,579 5,049,000 2.0
International 42,000 Total S.A. (Class B) 2,380,137 2,417,277 0.9
192,000 YPF S.A. (ADR)* 4,770,800 4,872,000 1.9
------------ ------------ ------
18,391,172 20,174,023 7.9
Metals & Mining 300,000 CRA Ltd. 3,704,244 4,153,534 1.6
187,000 ++Falconbridge Ltd. 2,533,703 2,520,352 0.9
380,000 Freeport-McMoRan Copper & Gold Inc. 8,134,201 8,787,500 3.4
2,023,000 M.I.M. Holdings Ltd. 4,404,825 4,483,777 1.8
250,000 Noranda Inc. 4,726,554 4,409,690 1.7
85,000 Phelps Dodge Corp. 3,997,431 5,248,750 2.1
375,000 The RTZ Corp. PLC (Rio Tinto Zinc) 4,822,842 4,989,024 1.9
------------ ------------ ------
32,323,800 34,592,627 13.4
Oil & Gas 957,000 Ampolex Ltd. 2,975,977 3,026,095 1.2
Producers 410,000 ++Chauvco Resources Ltd. 4,750,813 4,969,607 1.9
730,000 Enterprise Oil PLC 4,693,559 4,825,017 1.9
39,000 The Louisiana Land and Exploration Co. 1,495,626 1,642,875 0.6
140,000 Oryx Energy Co. 2,332,787 2,152,500 0.8
12,500,000 Premier Consolidated Oilfields PLC 6,793,853 5,205,938 2.0
380,000 Ranger Oil, Ltd. 2,575,159 2,470,000 1.0
93,200 ++Vastar Resources, Inc. 2,555,113 2,469,800 1.0
------------ ------------ ------
28,172,887 26,761,832 10.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Shares Value Percent of
Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Oil Services 194,000 IHC Caland $ 4,286,119 $ 4,477,929 1.8%
80,000 Schlumberger Ltd. 4,642,939 4,720,000 1.8
------------ ------------ ------
8,929,058 9,197,929 3.6
<PAGE>
Paper & Pulp 426,600 Aracruz Celulose S.A. (ADR)* 2,365,445 4,799,250 1.9
90,000 Georgia-Pacific Corp. 5,778,780 5,805,000 2.3
27,000 Metsa-Serla OY 1,182,695 1,164,373 0.4
58,000 Mo Och Domsjo AB Co. 2,330,990 2,537,851 1.0
150,000 Pope & Talbot, Inc. 3,477,225 2,775,000 1.1
600,000 Slocan Forest Products Ltd. 5,136,011 5,644,402 2.2
270,000 Weyerhaeuser Co. 10,496,289 11,340,000 4.4
80,000 Willamette Industries, Inc. 3,013,670 3,940,000 1.5
------------ ------------ ------
33,781,105 38,005,876 14.8
Petroleum 250,000 Total Petroleum (North America), Ltd. 3,028,198 2,781,250 1.1
Refining
Plantations 635,000 Kuala Lumpur Kepong BHD 1,274,116 1,555,052 0.6
Wood Products 310,000 Louisiana-Pacific Corp. 10,634,960 9,997,500 3.9
325,000 Pacific Forest Products Ltd. 3,496,173 3,233,772 1.3
146,100 Riverside Forest Products Ltd. 2,401,223 2,616,669 1.0
------------ ------------ ------
16,532,356 15,847,941 6.2
Total Common Stocks 209,597,919 218,716,667 85.2
<CAPTION>
Face
Amount Short-Term Securities
<S> <C> <S> <C> <C> <C>
Repurchase $11,131,000 UBS Finance, Inc., purchased on 7/29/1994
Agreements** to yield 4.22% to 8/01/1994 11,131,000 11,131,000 4.3
US Treasury Bills:
US Government 15,000,000 4.15% due 9/01/1994 14,941,208 14,944,467 5.8
Obligations*** 4,000,000 4.385% due 10/06/1994 3,966,382 3,967,723 1.6
6,000,000 4.41% due 10/20/1994 5,938,995 5,940,793 2.3
2,000,000 4.255% due 10/27/1994 1,978,725 1,978,250 0.8
Total Short-Term Securities 37,956,310 37,962,233 14.8
Total Investments $247,554,229 256,678,900 100.0
============
Liabilities in Excess of Other Assets (44,008) (0.0)
------------ ------
Net Assets $256,634,892 100.0%
============ ======
<FN>
++Non-income producing security.
*American Depositary Receipts (ADR).
**Repurchase Agreements are fully collateralized by US Government & Agency Obligations.
***US Government Obligations are traded on a discount basis; the interest rates shown are
the discount rates paid at the time of purchase by the Trust.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of July 31, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$247,554,229) (Note 1a) $256,678,900
Cash 485
Foreign cash 43,647
Receivables:
Beneficial interest sold $ 2,351,616
Dividends 576,925 2,928,541
------------
Prepaid registration fees and other assets (Note 1f) 70,862
------------
Total assets 259,722,435
------------
Liabilities: Payables:
Securities purchased 2,299,969
Beneficial interest redeemed 323,895
Distributor (Note 2) 181,853
Investment adviser (Note 2) 118,194 2,923,911
------------
Accrued expenses and other liabilities 163,632
------------
Total liabilities 3,087,543
------------
Net Assets: Net assets $256,634,892
============
Net Assets Class A Shares of beneficial interest, $0.10 par value, unlimited number of
Consist of: shares authorized $ 126,612
Class B Shares of beneficial interest, $0.10 par value, unlimited number of
shares authorized 1,504,834
Paid-in capital in excess of par 271,817,014
Undistributed investment income--net 859,496
Accumulated realized capital losses and foreign currency
transactions--net (Note 5) (26,802,008)
Unrealized appreciation on investments and foreign currency
transactions--net 9,128,944
------------
Net assets $256,634,892
============
<PAGE>
Net Asset Class A--Based on net assets of $20,054,142 and 1,266,118 shares of beneficial
Value: interest outstanding $ 15.84
============
Class B--Based on net assets of $236,580,750 and 15,048,339 shares of
beneficial interest outstanding $ 15.72
============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Year Ended July 31, 1994
<S> <S> <C>
Investment Dividends (net of $166,153 foreign withholding tax) $ 4,280,744
Income Interest and discount earned 905,265
(Notes 1d & ------------
1e): Total income 5,186,009
------------
Expenses: Distribution fees--Class B (Note 2) 2,106,888
Investment advisory fees (Note 2) 1,351,581
Transfer agent fees--Class B (Note 2) 360,957
Printing and shareholder reports 114,272
Accounting services (Note 2) 67,082
Custodian fees 65,960
Professional fees 56,507
Registration fees (Note 1f) 49,670
Trustees' fees and expenses 41,519
Transfer agent fees--Class A (Note 2) 20,530
Amortization of organization expenses (Note 1f) 5,285
Other 6,389
------------
Total expenses 4,246,640
------------
Investment income--net 939,369
------------
<PAGE>
Realized & Realized gain (loss) from:
Unrealized Investments--net $ 1,840,778
Gain(Loss)on Foreign currency transactions--net (107,675) 1,733,103
Investments ------------ ------------
& Foreign Change in unrealized appreciation/depreciation on:
Currency Investments--net 22,556,309
Transactions- Foreign currency transactions--net 6,959 22,563,268
Net(Notes 1b, ------------ ------------
1d & 3): Net realized and unrealized gain on investments and
foreign currency transactions 24,296,371
------------
Net Increase in Net Assets Resulting from Operations $ 25,235,740
============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended July 31,
1994 1993
Increase (Decrease) in Net Assets:
<S> <S> <C> <C>
Operations: Investment income--net $ 939,369 $ 1,612,413
Realized gain (loss) on investments and foreign currency transactions--net 1,733,103 (25,207,926)
Change in unrealized appreciation/depreciation on investments and foreign
currency transactions--net 22,563,268 18,886,523
------------ ------------
Net increase (decrease) in net assets resulting from operations 25,235,740 (4,708,990)
------------ ------------
Dividends to Investment income--net:
Shareholders Class A (114,152) (184,310)
(Note 1g): Class B (703,582) (1,546,283)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (817,734) (1,730,593)
------------ ------------
Beneficial Net increase (decrease) in net assets derived from beneficial interest
Interest transactions 12,016,848 (39,490,887)
Transactions ------------ ------------
(Note 4):
<PAGE>
Net Assets: Net increase (decrease) in net assets 36,434,854 (45,930,470)
Beginning of year 220,200,038 266,130,508
------------ ------------
End of year* $256,634,892 $220,200,038
============ ============
<FN>
*Undistributed investment income--net $ 859,496 $ 737,861
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. Class A
For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 14.07 $ 14.33 $ 15.38 $ 15.93 $ 13.63
Operating ------- ------- ------- ------- -------
Performance: Investment income--net .22 .24 .34 .37 .39
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net(1) 1.69 (.26) (.13) (.47) 2.29
------- ------- ------- ------- -------
Total from investment operations 1.91 (.02) .21 (.10) 2.68
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.14) (.24) (.47) (.41) (.38)
Realized gain on investments--net -- -- (.79) (.04) --
------- ------- ------- ------- -------
Total dividends and distributions (.14) (.24) (1.26) (.45) (.38)
------- ------- ------- ------- -------
Net asset value, end of year $ 15.84 $ 14.07 $ 14.33 $ 15.38 $ 15.93
======= ======= ======= ======= =======
<PAGE>
Total Investment Based on net asset value per share 13.69% (.05%) 1.66% (.57%) 19.99%
Return:* ======= ======= ======= ======= =======
Ratios to Average Expenses .92% .95% .97% .95% .93%
Net Assets: ======= ======= ======= ======= =======
Investment income--net 1.39% 1.62% 1.82% 2.89% 3.18%
======= ======= ======= ======= =======
Supplemental Net assets, end of year (in thousands) $20,054 $12,087 $11,265 $ 6,699 $ 5,440
Data: ======= ======= ======= ======= =======
Portfolio turnover 54.87% 66.78% 31.43% 71.42% 57.21%
======= ======= ======= ======= =======
<FN>
*Total investment returns exclude the effects of sales loads.
(1)Foreign currency transaction amounts have been reclassified to conform to 1994 presentation.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. Class B
For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 14.02 $ 14.26 $ 15.30 $ 15.84 $ 13.55
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .05 .09 .13 .31 .33
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net(1) 1.70 (.24) (.08) (.56) 2.19
-------- -------- -------- -------- --------
Total from investment operations 1.75 (.15) .05 (.25) 2.52
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.05) (.09) (.30) (.25) (.23)
Realized gain on investments--net -- -- (.79) (.04) --
-------- -------- -------- -------- --------
Total dividends and distributions (.05) (.09) (1.09) (.29) (.23)
-------- -------- -------- -------- --------
Net asset value, end of year $ 15.72 $ 14.02 $ 14.26 $ 15.30 $ 15.84
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 12.52% (1.02%) .53% (1.61%) 18.79%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding distribution fees .95% .99% 1.00% .99% .96%
Net Assets: ======== ======== ======== ======== ========
Expenses 1.95% 1.99% 2.00% 1.99% 1.96%
======== ======== ======== ======== ========
Investment income--net .35% .60% .94% 1.85% 1.96%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $236,581 $208,113 $254,866 $322,502 $420,951
Data: ======== ======== ======== ======== ========
Portfolio turnover 54.87% 66.78% 31.43% 71.42% 57.21%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effects of sales loads.
(1)Foreign currency transaction amounts have been reclassified to conform to 1994 presentation.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Resources Trust (the "Trust")
(formerly Merrill Lynch Natural Resources Trust) is
registered under the Investment Company Act of 1940
as a non-diversified, open-end management investment
company. The Trust offers both Class A and Class B
Shares. Class A Shares are sold with a front-end sales
charge. Class B Shares may be subject to a contingent
deferred sales charge. Both classes of shares have
identical voting, dividend, liquidation and other rights
and the same terms and conditions, except that
Class B Shares bear certain expenses related to the
distribution of such shares and have exclusive voting
rights with respect to matters relating to such dis-
tribution expenditures. The following is a summary of
significant accounting policies followed by the Trust.
<PAGE>
(a) Valuation of investments--Securities traded on a
stock exchange are valued at the last sale price 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 quoted bid price at the close of
trading on such day by dealers that make markets in
such securities. Securities which are traded both in
the over-the-counter market and on a stock exchange
are valued based upon the prices or quotes obtained
from the broadest and most representative market.
Short-term securities are valued at amortized cost,
which approximates market. Options which are traded
on exchanges are valued at the last sale price as of the
close of such exchanges or, lacking any sales, at the
last available bid price. Securities for which market
quotations are not readily available are valued at their
fair value as determined in good faith by or under the
direction of the Trustees of the Trust.
(b) Foreign currency transactions--Transactions denomi-
nated 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 valu-
ing (unrealized) such transactions expressed in foreign
currencies into US dollars. Realized and unrealized
gains or losses from investments include the effects of
foreign exchange rates on investments.
The Trust 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 Trust's records. However, the effect on
net investment income is recorded from the date the
Trust enters into such contracts. Premium or discount
is amortized over the life of the contracts.
(c) Options--The Trust can write covered call options and
purchase put options. When the Trust writes an option,
an amount equal to the premium received by the Trust is
reflected as an asset and an equivalent liability. The
amount of the liability is subsequently marked to market
to reflect the current market value of the option written.
<PAGE>
When a security is purchased or sold through an exercise
of an option, the related premium paid (or received)
is added to (or deducted from) the basis of the security
acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the
Trust enters into a closing transaction), the Trust
realizes a gain or loss on the option to the extent of the
premiums received or paid (or loss or gain to the extent
the cost of the closing transaction is less than or greater
than the premiums paid or received).
Written and purchased options are non-income pro-
ducing investments.
(d) Income taxes--It is the Trust'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 provi-
sion 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 except that
if the ex-dividend date has passed, certain dividends
from foreign securities are recorded as soon as the Trust
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) Deferred organization expenses and prepaid registra-
tion fees--Deferred organization expenses are charged to
expense on a straight-line basis over a five-year period.
Prepaid registration fees are charged to expense as the
related shares are issued.
(g) Dividends and distributions--Dividends and
distributions paid by the Trust are recorded on the
ex-dividend dates.
<PAGE>
2. Investment Advisory Agreement and Transaction
with Affiliates:
The Trust has entered into an Investment Advisory
Agreement with Merrill Lynch Asset Management, L.P.
("MLAM"). Effective January 1, 1994, the investment
advisory business of MLAM was reorganized from a
corporation to a limited partnership. Both prior to and
after the reorganization, ultimate control of MLAM was
vested with Merrill Lynch & Co., Inc. ("ML & Co.").
The general partner of MLAM is Princeton Services,
Inc., an indirect wholly-owned subsidiary of ML & Co.
The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also
an indirect wholly-owned subsidiary of ML & Co. The
Fund has also entered into a Distribution Agreement
and a Distribution Plan with Merrill Lynch Funds
Distributor, Inc. ("MLFD" or "Distributor"), a wholly-
owned subsidiary of MLIM.
MLAM is responsible for the management of the Trust's
portfolio and provides the necessary personnel, facili-
ties, equipment and certain other services necessary to
the operations of the Trust. For such services, the Trust
pays a monthly fee of 0.60% on an annual basis, of the
average daily value of the Trust's net assets. The Invest-
ment Advisory Agreement obligates MLAM to reimburse
the Trust to the extent the Trust's expenses (excluding
interest, taxes, distribution fees, brokerage fees and com-
missions, and extraordinary items) exceed 2.5% of the
Trust's first $30 million of average daily net assets, 2.0%
of the next $70 million of average daily net assets, and
1.5% of the average daily net assets in excess thereof.
No fee payment will be made to the Investment Adviser
during any fiscal year which will cause such expenses
to exceed the most restrictive expense limitation at the
time of such payment.
Pursuant to a distribution plan ("the Distribution Plan")
adopted by the Trust in accordance with Rule 12b-1
under the Investment Company Act of 1940, the Trust
pays the Distributor an ongoing account maintenance
fee and distribution fee, which are accrued daily and
paid monthly at the annual rates of 0.25% and 0.75%,
respectively, of the average daily net assets of the Class B
Shares of the Trust. Pursuant to a sub-agreement with the
Distributor, Merrill Lynch Pierce, Fenner & Smith,
Inc. (MLPF&S) also provides account maintenance and
distribution services to the Trust. The ongoing account
maintenance fee compensates the Distributor and MLPF&S for
providing account maintenance services to Class B shareholders.
The ongoing distribution fee compensates the Distributor
and MLPF&S for providing shareholder and distribution
services and bearing certain distribution-related expenses
of the Trust, including payments to financial consultants
for selling Class B Shares of the Trust. As authorized by the
Plan, MLFD has entered into an agreement with MLPF&S, which
provides for the compensation of MLPF&S for providing distribution-
related services to the Trust.
During the year ended July 31, 1994, MLFD earned
underwriting discounts of $12,408, and MLPF&S earned
dealer concessions of $164,754, on sales of the Trust's
Class A Shares.
<PAGE>
MLPF&S received contingent deferred sales charges for
the sale of Class B Shares of $188,148 and $4,800
in commissions on the execution of portfolio security
transactions for the Trust during the year.
Financial Data Services, Inc. ("FDS"), a wholly-owned
subsidiary of ML & Co., is the Trust's transfer agent.
Accounting services are provided to the Trust by MLAM
at cost.
Certain officers and/or trustees of the Trust are officers
and/or directors of MLIM, MLPF&S, FDS, MLFD, and/or
ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-
term securities, for the year ended July 31, 1994 were
$108,922,248 and $123,958,324, respectively.
Net realized and unrealized gains (losses) as of
July 31, 1994 were as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $ 1,842,199 $ 9,118,748
Short-term investments (1,421) 5,923
Foreign currency
transactions (107,675) 4,273
----------- -----------
Total $ 1,733,103 $ 9,128,944
=========== ===========
As of July 31, 1994, net unrealized appreciation for
Federal income tax purposes aggregated $9,124,671, of
which $15,075,411 related to appreciated securities
and $5,950,740 related to depreciated securities. The
aggregate cost of investments at July 31, 1994 for Federal
income tax purposes was $247,554,229.
NOTES TO FINANCIAL STATEMENTS (concluded)
4. Shares of Beneficial Interest:
Net increase (decrease) in net assets derived from
beneficial interest transactions was $12,016,848 and
($39,490,887) for the years ended July 31, 1994 and
July 31, 1993, respectively.
Transactions in shares of beneficial interest for Class A
and Class B Shares were as follows:
Class A Shares for the Year Dollar
Ended July 31, 1994 Shares Amount
Shares sold 1,169,348 $ 17,964,584
Shares issued to shareholders
in reinvestment of dividends 6,902 96,377
----------- ------------
Total issued 1,176,250 18,060,961
Shares redeemed (769,151) (11,522,490)
----------- ------------
Net increase 407,099 $ 6,538,471
=========== ============
Class A Shares for the Year Dollar
Ended July 31, 1993 Shares Amount
Shares sold 651,703 $ 9,124,901
Shares issued to shareholders
in reinvestment of dividends 11,188 149,234
----------- ------------
Total issued 662,891 9,274,135
Shares redeemed (590,161) (8,196,043)
----------- ------------
Net increase 72,730 $ 1,078,092
=========== ============
<PAGE>
Class B Shares for the Year Dollar
Ended July 31, 1994 Shares Amount
Shares sold 4,569,263 $ 70,407,201
Shares issued to shareholders
in reinvestment of dividends 38,724 541,357
----------- ------------
Total issued 4,607,987 70,948,558
Shares redeemed (4,402,209) (65,470,181)
----------- ------------
Net increase 205,778 $ 5,478,377
=========== ============
Class B Shares for the Year Dollar
Ended July 31, 1993 Shares Amount
Shares sold 2,354,206 $ 32,785,764
Shares issued to shareholders
in reinvestment of dividends 88,895 1,184,467
----------- ------------
Total issued 2,443,101 33,970,231
Shares redeemed (5,467,068) (74,539,210)
----------- ------------
Net decrease (3,023,967) $(40,568,979)
=========== ============
5. Capital Loss Carryforward:
At July 31, 1994, the Trust has a net capital loss
carryforward of approximately $26,694,000 all of which
$2,786,000 expires in 2000, $1,863,000 expires in 2001
and $22,045,000 expires in 2002 and will be available to
offset a like amount of any future taxable gains.
6. Commitments:
At July 31, 1994, the Trust entered into forward exchange
contracts under which it had agreed to purchase various
foreign currencies with values of approximately $507,000.
<PAGE>
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Merrill Lynch Global Resources Trust (formerly
Merrill Lynch Natural Resources Trust):
We have audited the accompanying statement of assets
and liabilities, including the schedule of investments, of
Merrill Lynch Global Resources Trust as of July 31,
1994, 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 finan-
cial 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 Trust's
management. Our responsibility is to express an opinion
on these financial statements and the financial high-
lights 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 misstate-
ment. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confir-
mation of securities owned at July 31, 1994 by correspon-
dence 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 Resources
Trust as of July 31, 1994, the results of its operations, the
changes in its net assets, and the financial highlights for
the respective stated periods in conformity with gener-
ally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
August 29, 1994
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION
All of the ordinary income distributions paid by Merrill
Lynch Global Resources Trust during its taxable year
ended July 31, 1994 qualify for the dividends received
deduction for corporations. Additionally, there were no
long-term capital gains distributions paid by the Trust
during the year.
Please retain this information for your records.
PORTFOLIO INFORMATION
For the Quarter Ended July 31, 1994
Percent of
Ten Largest Equity Holdings Net Assets
Weyerhaeuser Co. 4.4%
Cyprus Amax Minerals Co. 4.2
Louisiana-Pacific Corp. 3.9
Occidental Petroleum Corp. 3.9
Freeport-McMoRan Copper & Gold Inc. 3.4
British Petroleum Co. PLC 3.1
Air Products and Chemicals, Inc. 2.8
Georgia-Pacific Corp. 2.3
Unocal Corp. 2.2
Slocan Forest Products Ltd. 2.2
Additions
Falconbridge Ltd.
Kuala Lumpur Kepong BHD
Metsa-Serla OY
Mo Och Domsjo AB Co.
Ranger Oil, Ltd.
Vastar Resources, Inc.
Deletion
Bridge Oil Ltd.
<PAGE>
APPENDIX: GRAPHIC AND IMAGE MATERIAL.
ITEM 1:
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Trust's
Class A Shares compared to growth of an investment in the S&P 500
Total Return Index, the Lipper Gold Funds Index and the Lipper
Natural Resources Funds Index. Beginning and ending values are:
10/24/88** 7/31/94
ML Global Resources Trust++--
Class A Shares* $9,350 $14,274
S&P 500 Index++++ $10,000 $19,489
Lipper Gold Funds Index++++++ $10,000 $12,692
Lipper Natural Resources Funds
Index++++++++ $10,000 $15,687
A line graph depicting the growth of an investment in the Trust's
Class B Shares compared to growth of an investment in the S&P 500
Index, the Lipper Gold Funds Index and the Lipper Natural
Resources Funds Index. Beginning and ending values are:
8/02/85** 7/31/94
ML Global Resources Trust++--
Class B Shares* $10,000 $21,825
S&P 500 Index++++ $10,000 $32,144
Lipper Gold Funds Index++++++ $10,000 $18,364
Lipper Natural Resources Funds
Index++++++++ $10,000 $21,165
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++The Trust invests primarily in equity securities of domestic
and foreign companies with substantial natural resource assets.
++++This unmanaged broad-based Index is comprised of common stocks.
++++++The Lipper Gold Funds Index is an index of all US mutual
funds classified as gold-related funds.
++++++++The Lipper Natural Resources Funds Index is an index of all
US mutual funds classified as natural resource-related funds.
