MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
FUND LOGO
Semi-Annual Report
January 31, 1995
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
Edward P. Ix, Jr., 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, 12th Floor
New York, New York 10286
<PAGE>
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the 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, NJ
08543-9011
MERRILL LYNCH GLOBAL RESOURCES TRUST
DEAR SHAREHOLDER
The three-month period ended January 31, 1995 was turbulent for the
natural resource sector. Commodity prices in the industrial sectors
such as base metals, chemicals, steels and paper products continued
their strong upward trend during the period. These higher commodity
prices, along with evidence of continued strong economic growth, low
unemployment and high capacity utilization rates in the United
States, prompted the US Federal Reserve Board to raise short-term
interest rates by a greater-than-expected 75 basis points (0.75%) in
November in an effort to contain inflationary pressures. This, in
turn, unsettled bond markets worldwide, and left most of the world's
stock markets with losses during the quarter as investors feared
that higher interest rates would significantly slow economic growth
and sharply reduce the demand for many basic resources. Chemical,
metal, paper and natural gas-related stocks were sold aggressively
worldwide and generally underperformed the broad stock market
averages. We believe the outlook for worldwide economic growth and
basic resource demand remains favorable, and therefore used recent
share price weakness in the natural resource sector as an
opportunity to reduce the Trust's cash position to about 9% of net
assets, down from about 13% of net assets at the end of October.
<PAGE>
Investment Activities
We continued to increase our exposure to the base metal sector
during the January quarter. Share prices of base metal companies
have been under pressure since the Federal Reserve Board raised
interest rates in November. The outlook for demand and pricing in
this sector is highly correlated with economic growth, and the
Federal Reserve Board's attempts to cool the strong US economy have
raised investors' concerns about the outlook for the sector. After
rising sharply throughout 1994 and into the first three weeks of
January, base metal prices experienced a significant correction in
late January, triggered by the release of employment figures in the
United States which suggested that US economic growth was slowing.
As stated in our October shareholder letter, we remain optimistic
about the outlook for investments in the base metal sector. In
analyzing the outlook for commodities in this sector, it is
important to focus on the global economy. Even if the US economy
does begin to slow, worldwide consumption of base metals should
continue to rise as the European and Japanese economies gather
momentum and the developing nations continue to expand. This rising
consumption pattern along with expectations for limited capacity
expansions should continue to strengthen the fundamental
supply/demand outlook, and could result in a prolonged upward cycle
in base metal prices. We used the weakness in base metal-related
shares as an opportunity to purchase several attractively valued
companies, including ASARCO Inc. in the United States, Alcan
Aluminium Ltd. in Canada, and Koninklijke Nederlandsche Hoogovens en
Staalfabrieken N.V. in the Netherlands.
We also increased the Trust's exposure to the paper and forest
products sector during the January quarter. The pricing environment
continues to improve and appears to be accelerating dramatically
across many paper grades. Low inventory levels, rising demand and
little capacity growth are combining to raise operating rates and to
give the industry greater pricing flexibility. As a result, earnings
momentum is accelerating and earnings projections are being revised
upward for pulp and paper companies. We increased our exposure to
the sector by adding to some of our existing holdings and through
the purchase of Avenor Inc., a Canadian paper company with
significant leverage to both pulp and newsprint.
In Conclusion
We remain optimistic about the outlook for investments in the
natural resource sector. While rising interest rates in the United
States will likely slow US economic growth during 1995, we do expect
global economic growth to remain robust, which should continue to
support the underlying demand for basic resources. We are
maintaining a large exposure to the industrial side of our universe,
including the paper, base metal and chemical sectors, where a
combination of firm commodity prices, improved capacity utilization
rates and reduced cost structures should lead to an improving
earnings outlook.
<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
March 1, 1995
PERFORMANCE DATA
About Fund Performance
Since October 21, 1994, investors have been able to purchase shares
of the Trust through the Merrill Lynch Select Pricing SM System,
which offers four pricing alternatives:
*Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
*Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after 8 years.
*Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
*Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
<PAGE>
Performance data for the Trust's Class A and Class B Shares are
presented in the "Performance Summary," "Recent Performance Results"
and "Average Annual Total Return" tables on pages 3 and 4. Data for
Class C and Class D Shares are also presented in the "Recent
Performance Results" and "Aggregate Total Return" tables on page 3.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for Class A and Class B
Shares for the 12-month and 3-month periods ended January 31, 1995
and for Class C and Class D Shares for the since inception and the 3-
month periods ended January 31, 1995. All data in this table assume
imposition of the actual total expenses incurred by each class of
shares during the relevant period.
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
PERFORMANCE DATA (continued)
<TABLE>
Recent Performance Results*
<CAPTION>
12 Month 3 Month
1/31/95 10/31/94 1/31/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Global Resources Trust Class A Shares $14.53 $16.13 $16.15 -10.03% - 9.92%
ML Global Resources Trust Class B Shares 14.53 16.10 16.12 - 9.86 - 9.75
ML Global Resources Trust Class C Shares 14.48 16.09 15.93 - 9.10 -10.01
ML Global Resources Trust Class D Shares 14.52 16.13 15.96 - 9.02 - 9.98
ML Global Resources Trust Class A Shares--Total Return - 8.65(1) - 9.48(2)
ML Global Resources Trust Class B Shares--Total Return - 9.67(3) - 9.75
ML Global Resources Trust Class C Shares--Total Return - 8.78(4) - 9.69(4)
ML Global Resources Trust Class D Shares--Total Return - 8.61(5) - 9.57(5)
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
++Investment results shown for Class C and Class D Shares are since
inception (10/21/94).
(1)Percent change includes reinvestment of $0.242 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.072 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.035 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.052 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.068 per share ordinary
income dividends.
</TABLE>
<PAGE>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/94 + 1.20% - 4.11%
Five Years Ended 12/31/94 + 3.59 + 2.47
Inception (10/24/88)
through 12/31/94 + 6.56 + 5.63
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/94 + 0.15% - 3.85%
Five Years Ended 12/31/94 + 2.52 + 2.52
Inception (8/2/85)
through 12/31/94 + 8.25 + 8.25
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94)
through 12/31/94 - 4.88% - 5.83%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/21/94)
through 12/31/94 - 4.71% - 9.71%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<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
1994 15.19 15.14 -- 0.242 + 1.20
1/1/95--1/31/95 15.14 14.53 -- -- - 4.03
------ ------
Total $0.874 Total $2.021
Cumulative total return as of 1/31/95: +42.19%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
include sales charge; results would be lower if sales charge was
included.
</TABLE>
<PAGE>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <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
1994 15.17 15.16 -- 0.035 + 0.15
1/1/95--1/31/95 15.16 14.53 -- -- - 4.16
------ ------
Total $3.423 Total $1.451
Cumulative total return as of 1/31/95: +102.17%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Value Percent of
Industries Shares Held Common Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Chemicals 150,000 Air Products and Chemicals, Inc. $ 6,531,950 $ 6,693,750 2.2%
640,000 Asahi Chemical Industry Co., Ltd. 4,707,315 4,513,481 1.5
46,000 Dow Chemical Co. 3,229,632 2,869,250 0.9
42,000 du Pont (E.I.) de Nemours & Co. 2,292,524 2,236,500 0.7
157,500 Hanna (M.A.) Co. 3,130,050 3,799,688 1.3
------------ ------------ ------
19,891,471 20,112,669 6.6
Diversified 209,500 Canadian Pacific, Ltd. 3,293,882 2,854,437 0.9
Companies 157,000 Coastal Corp. 4,019,253 4,239,000 1.4
264,000 Cyprus Amax Minerals Co. 7,303,526 7,095,000 2.3
500,000 Occidental Petroleum Corp. 9,585,073 9,375,000 3.1
376,000 Renison Goldfields Consolidated Ltd. 1,501,336 1,321,565 0.4
------------ ------------ ------
25,703,070 24,885,002 8.1
<PAGE>
Gold 717,000 ++Delta Gold N.L. 1,512,241 1,439,288 0.5
1,620,100 Newcrest Mining Ltd. 7,369,782 5,915,228 2.0
180,622 Newmont Mining Corp. 7,351,052 6,208,881 2.0
302,000 Placer Dome Inc. 7,127,603 5,662,500 1.9
260,000 Sante Fe Pacific Gold Corp. 3,770,398 2,632,500 0.9
------------ ------------ ------
27,131,076 21,858,397 7.3
Integrated Oil 41,000 Amoco Corp. 2,293,335 2,378,000 0.8
Companies-- 200,000 Unocal Corp. 5,792,080 5,225,000 1.7
Domestic ------------ ------------ ------
8,085,415 7,603,000 2.5
Integrated Oil 1,230,000 British Petroleum Co. PLC 6,552,656 7,958,223 2.6
Companies-- 321,000 Petro-Canada 2,682,966 2,567,361 0.8
International 132,000 Societe Nationale Elf Aquitaine (ADR)* 4,687,579 4,752,000 1.6
77,000 Total S.A. (Class B) 4,545,990 4,341,908 1.4
192,000 YPF S.A. (ADR)* 4,770,799 3,960,000 1.3
------------ ------------ ------
23,239,990 23,579,492 7.7
Metals & Mining 82,000 ASARCO Inc. 2,347,060 2,162,750 0.7
88,000 Alcan Aluminium Ltd. 2,332,839 2,123,000 0.7
192,000 CRA Ltd. 2,371,133 2,396,851 0.8
35,240 Eramet 2,307,157 2,471,403 0.8
277,000 ++Falconbridge Ltd. 3,843,568 4,283,201 1.4
380,000 Freeport-McMoRan Copper & Gold Inc. 8,134,201 7,790,000 2.6
2,470,000 M.I.M. Holdings Ltd. 5,396,407 3,723,340 1.2
348,500 Noranda Inc. 6,579,048 5,915,283 2.0
83,000 Phelps Dodge Corp. 4,377,873 4,347,125 1.4
475,000 The RTZ Corp. PLC 6,123,752 5,835,138 1.9
215,000 Trelleborg 'B' Fria 2,921,179 3,323,384 1.1
1,090,000 Western Mining Corp. Holdings Ltd. 6,380,544 5,614,590 1.9
------------ ------------ ------
53,114,761 49,986,065 16.5
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Value Percent of
Industries Shares Held Common Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Oil & Gas 957,000 Ampolex Ltd. $ 2,975,977 $ 2,450,255 0.8%
Producers 89,000 Anadarko Petroleum Corp. 4,350,002 3,404,250 1.1
165,000 Apache Corp. 4,421,593 3,836,250 1.3
114,000 Burlington Resources Inc. 4,463,360 3,933,000 1.3
<PAGE> 403,000 ++Chauvco Resources Ltd. 4,669,606 5,013,863 1.7
208,000 Enron Oil & Gas Co. 4,455,800 3,692,000 1.2
730,000 Enterprise Oil PLC 4,693,559 4,613,600 1.5
68,600 The Louisiana Land and Exploration Co. 2,718,183 2,238,075 0.7
110,000 Mitchell Energy & Development Corp.
(Class A) 2,303,358 1,801,250 0.6
175,000 Mitchell Energy & Development Corp.
(Class B) 3,666,183 2,909,375 1.0
140,000 Oryx Energy Co. 2,332,787 1,452,500 0.5
12,500,000 Premier Consolidated Oilfields, PLC 6,793,854 4,641,250 1.5
530,000 Ranger Oil Ltd. 3,514,384 2,981,250 1.0
143,000 Sonat Inc. 4,554,346 3,843,125 1.3
75,000 Triton Energy Corp. 2,441,862 2,400,000 0.8
93,200 Vastar Resources, Inc. 2,555,113 2,178,550 0.7
------------ ------------ ------
60,909,967 51,388,593 17.0
Oil Services 150,000 Baker Hughes Inc. 2,877,321 2,643,750 0.9
57,800 Coflexip S.A. (ADR)* 1,242,700 1,430,550 0.5
194,000 IHC Caland N.V. 4,286,119 4,660,456 1.5
100,000 Schlumberger Ltd. 5,788,007 5,275,000 1.7
------------ ------------ ------
14,194,147 14,009,756 4.6
Paper & Pulp 346,600 Aracruz Celulose S.A. (ADR)* 1,896,700 4,505,800 1.5
76,000 ++Avenor Inc. 1,558,658 1,452,083 0.5
90,000 Georgia-Pacific Corp. 5,778,780 6,480,000 2.1
91,000 Metsa-Serla OY 3,935,508 3,608,308 1.2
80,400 Mo Och Domsjo AB Co. 3,434,828 3,889,078 1.3
150,000 Pope & Talbot, Inc. 3,477,225 2,287,500 0.8
540,000 Slocan Forest Products Ltd. 4,652,057 6,094,483 2.0
250,000 Weyerhaeuser Co. 9,826,729 9,468,750 3.1
80,000 Willamette Industries, Inc. 3,013,670 3,880,000 1.3
------------ ------------ ------
37,574,155 41,666,002 13.8
Petroleum Refining 250,000 Total Petroleum (North America), Ltd. 3,028,198 2,812,500 0.9
Plantations 717,000 Golden Hope Plantations BHD 1,325,785 1,082,158 0.4
480,000 Kuala Lumpur Kepong BHD 983,702 1,144,868 0.4
------------ ------------ ------
2,309,487 2,227,026 0.8
Steel 71,000 Koninklijke Nederlandsche Hoogovens en
Staalfabrieken N.V. 3,078,006 3,178,297 1.0
1,265,000 Sumitomo Metal Industries Ltd. 4,199,344 3,932,445 1.3
------------ ------------ ------
7,277,350 7,110,742 2.3
<PAGE>
Wood Products 250,000 Louisiana-Pacific Corp. 8,516,861 6,593,750 2.2
325,000 Pacific Forest Products Ltd. 3,496,173 2,657,116 0.9
146,100 Riverside Forest Products Ltd. 2,401,223 2,350,002 0.8
------------ ------------ ------
14,414,257 11,600,868 3.9
Total Common Stocks 296,873,344 278,840,112 92.0
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Value Percent of
Face Amount Short-Term Securities Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Repurchase $ 12,823,000 SBC Capital Markets, Inc., purchased on
Agreement** 1/31/1995 to yield 5.80% to 2/01/1995 $ 12,823,000 $ 12,823,000 4.2%
US Government US Treasury Bills:
Obligations*** 7,000,000 5.19% due 2/02/1995 6,997,982 6,997,982 2.3
7,000,000 5.35% due 2/09/1995 6,990,637 6,990,637 2.3
------------ ------------ ------
13,988,619 13,988,619 4.6
Total Short-Term Securities 26,811,619 26,811,619 8.8
Total Investments $323,684,963 305,651,731 100.8
============
Liabilities in Excess of Other Assets (2,388,555) (0.8)
------------ ------
Net Assets $303,263,176 100.0%
============ ======
<FN>
*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.
++Non-income producing security.
<PAGE>
See Notes to Financial Statements.
</TABLE>
PORTFOLIO INFORMATION
For the Quarter Ended January 31, 1995
Percent of
Ten Largest Equity Holdings Net Assets
Weyerhaeuser Co. 3.1%
Occidental Petroleum Corp. 3.1
British Petroleum Co. PLC 2.6
Freeport-McMoRan Copper & Gold Inc. 2.6
Cyprus Amax Minerals Co. 2.3
Air Products and Chemicals, Inc. 2.2
Louisiana-Pacific Corp. 2.2
Georgia-Pacific Corp. 2.1
Newmont Mining Corp. 2.0
Slocan Forest Products Ltd. 2.0
Additions
ASARCO Inc.
Alcan Aluminium Ltd.
Avenor Inc.
Coflexip S.A. (ADR)
Delta Gold N.L.
Koninklijke Nederlandsche Hoogovens en Staalfabrieken N.V.
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of January 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$323,684,963) (Note 1a) $ 305,651,731
Cash 22,138
Receivables:
Beneficial interest sold $ 744,062
Dividends 459,655 1,203,717
------------
Prepaid registration fees and other assets (Note 1f) 70,861
-------------
Total assets 306,948,447
-------------
<PAGE>
Liabilities: Payables:
Securities purchased 1,841,034
Beneficial interest redeemed 1,309,739
Distributor (Note 2) 207,314
Investment adviser (Note 2) 164,328 3,522,415
------------
Accrued expenses and other liabilities 162,856
-------------
Total liabilities 3,685,271
-------------
Net Assets: Net assets $ 303,263,176
=============
Net Assets Class A Shares of beneficial interest, $0.10 par value, unlimited
Consist of: number of shares authorized $ 203,569
Class B Shares of beneficial interest, $0.10 par value, unlimited
number of shares authorized 1,447,973
Class C Shares of beneficial interest, $0.10 par value, unlimited
number of shares authorized 22,438
Class D Shares of beneficial interest, $0.10 par value, unlimited
number of shares authorized 413,431
Paid-in capital in excess of par 343,890,104
Undistributed investment income--net 271,456
Accumulated realized capital losses on investments and foreign
currency transactions--net (24,953,555)
Unrealized depreciation on investments and foreign currency
transactions--net (18,032,240)
-------------
Net assets $ 303,263,176
=============
Net Asset Value: Class A--Based on net assets of $29,571,128 and 2,035,686 shares
of beneficial interest outstanding $ 14.53
=============
Class B--Based on net assets of $210,409,406 and 14,479,725 shares
of beneficial interest outstanding $ 14.53
=============
Class C--Based on net assets of $3,248,021 and 224,381 shares
of beneficial interest outstanding $ 14.48
=============
Class D--Based on net assets of $60,034,621 and 4,134,310 shares
of beneficial interest outstanding $ 14.52
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Six Months Ended January 31, 1995
<S> <S> <C> <C>
Investment Dividends (net of $140,428 foreign withholding tax) $ 2,449,563
Income Interest and discount earned 1,020,343
(Notes 1d -------------
& 1e): Total income 3,469,906
-------------
Expenses: Distribution fees--Class B (Note 2) $ 1,267,265
Investment advisory fees (Note 2) 922,485
Transfer agent fees--Class B (Note 2) 284,614
Printing and shareholder reports 57,820
Custodian fees 55,953
Registration fees (Note 1f) 44,984
Professional fees 34,015
Account maintenance fees--Class D (Note 2) 28,963
Transfer agent fees--Class A (Note 2) 27,855
Accounting services (Note 2) 26,314
Transfer agent fees--Class D (Note 2) 25,716
Trustees' fees and expenses 17,620
Distribution fees--Class C (Note 2) 5,482
Transfer agent fees--Class C (Note 2) 1,442
Pricing fees 1,400
Other 5,718
------------
Total expenses 2,807,646
-------------
Investment income--net 662,260
-------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 1,904,762
(Loss) on Foreign currency transactions--net (56,309) 1,848,453
Investments & ------------
Foreign Change in unrealized appreciation/depreciation on:
Currency Investments--net (27,157,903)
Transactions Foreign currency transactions--net (3,281) (27,161,184)
- --Net (Notes ------------ -------------
1b, 1c, 1e Net realized and unrealized loss on investments and
& 3): foreign currency transactions (25,312,731)
-------------
Net Decrease in Net Assets Resulting from Operations $ (24,650,471)
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the Year
Months Ended Ended
January 31, July 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 662,260 $ 939,369
Realized gain on investments and foreign currency
transactions--net 1,848,453 1,733,103
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net (27,161,184) 22,563,268
------------- -------------
Net increase (decrease) in net assets resulting from
operations (24,650,471) 25,235,740
------------- -------------
Dividends to Investment income--net:
Shareholders Class A (426,768) (114,152)
(Note 1g): Class B (570,653) (703,582)
Class C (7,419) --
Class D (245,460) --
------------- -------------
Net decrease in net assets resulting from dividends
to shareholders (1,250,300) (817,734)
------------- -------------
Beneficial Net increase in net assets derived from beneficial interest
Interest transactions 72,529,055 12,016,848
Transactions ------------- -------------
(Note 4):
Net Assets: Total increase in net assets 46,628,284 36,434,854
Beginning of period 256,634,892 220,200,038
------------- -------------
End of period* $ 303,263,176 $ 256,634,892
============= =============
*Undistributed investment income--net $ 271,456 $ 859,496
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
Class A
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
January 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.84 $ 14.07 $ 14.33 $ 15.38 $ 15.93
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .11 .22 .24 .34 .37
Realized and unrealized gain (loss) on
investments and foreign currency trans-
actions--net (1.18) 1.69 (.26) (.13) (.47)
-------- -------- -------- -------- --------
Total from investment operations (1.07) 1.91 (.02) .21 (.10)
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.24) (.14) (.24) (.47) (.41)
Realized gain on investments--net -- -- -- (.79) (.04)
-------- -------- -------- -------- --------
Total dividends and distributions (.24) (.14) (.24) (1.26) (.45)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.53 $ 15.84 $ 14.07 $ 14.33 $ 15.38
======== ======== ======== ======== ========
Total Investment Based on net asset value per share (6.86%)+++ 13.69% (.05%) 1.66% (.57%)
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses .95%* .92% .95% .97% .95%
Net Assets: ======== ======== ======== ======== ========
Investment income--net 1.31%* 1.39% 1.62% 1.82% 2.89%
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 29,571 $ 20,054 $ 12,087 $ 11,265 $ 6,699
Data: ======== ======== ======== ======== ========
Portfolio turnover 4.61% 54.87% 66.78% 31.43% 71.42%
======== ======== ======== ======== ========
<PAGE>
<CAPTION>
Class B
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
January 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.72 $ 14.02 $ 14.26 $ 15.30 $ 15.84
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .03 .05 .09 .13 .31
Realized and unrealized gain (loss) on
investments and foreign currency trans-
actions--net (1.18) 1.70 (.24) (.08) (.56)
-------- -------- -------- -------- --------
Total from investment operations (1.15) 1.75 (.15) .05 (.25)
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.04) (.05) (.09) (.30) (.25)
Realized gain on investments--net -- -- -- (.79) (.04)
-------- -------- -------- -------- --------
Total dividends and distributions (.04) (.05) (.09) (1.09) (.29)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.53 $ 15.72 $ 14.02 $ 14.26 $ 15.30
======== ======== ======== ======== ========
Total Based on net asset value per share (7.37%)+++ 12.52% (1.02%) .53% (1.61%)
Investment ======== ======== ======== ======== ========
Return:**
Ratios to Expenses, excluding distribution fees .98%* .95% .99% 1.00% .99%
Average ======== ======== ======== ======== ========
Net Assets: Expenses 1.98%* 1.95% 1.99% 2.00% 1.99%
======== ======== ======== ======== ========
Investment income--net .29%* .35% .60% .94% 1.85%
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $210,409 $236,581 $208,113 $254,866 $322,502
Data: ======== ======== ======== ======== ========
Portfolio turnover 4.61% 54.87% 66.78% 31.43% 71.42%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment return excludes the effects of sales loads.
+++Aggregate total investment return.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
The following per share data and ratios have been derived For the Period
from information provided in the financial statements. October 21, 1994++ to
January 31, 1995
Increase (Decrease) in Net Asset Value: Class C Class D
<S> <C> <C>
Per Share Net asset value, beginning of period $ 15.93 $ 15.96
Operating ------------- -------------
Performance: Investment income--net .02 .04
Realized and unrealized loss on investments and foreign currency
transactions--net (1.42) (1.41)
------------- -------------
Total from investment operations (1.40) (1.37)
------------- -------------
Less dividends:
Investment income--net (.05) (.07)
------------- -------------
Total dividends (.05) (.07)
------------- -------------
Net asset value, end of period $ 14.48 $ 14.52
============= =============
Total Investment Based on net asset value per share (8.78%)+++ (8.61%)+++
Return:** ============= =============
Ratios to Expenses, excluding account maintenance and distribution fees 1.05%* 1.01%*
Average Net ============= =============
Assets: Expenses 2.05%* 1.26%*
============= =============
Investment income--net .14%* .91%*
============= =============
Supplemental Net assets, end of period (in thousands) $ 3,248 $ 60,035
Data: ============= =============
Portfolio turnover 4.61% 4.61%
============= =============
<PAGE>
*Annualized.
**Total investment returns exclude the effect of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Resources Trust ("the Trust") is registered
under the Investment Company Act of 1940 as a non-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 Trust 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 Trust.
(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 value. 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.
<PAGE>
(b) Derivative financial instruments--The Trust 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.
* Forward foreign exchange contracts--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.
* 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.
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 producing investments.
(c) 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.
(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
provision is required. Under the applicable foreign tax law, a
withholding tax may be imposed on interest, dividends, and capital
gains at various rates.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Dividend income is recorded on the ex-
dividend date, except that if the ex-dividend date has passed,
certain dividends from foreign securities are recorded as soon as
the 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) 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 Trust are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Trust 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 Trust 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.
MLAM is responsible for the management of the Trust's portfolio and
provides the necessary personnel, facilities, 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 Investment
Advisory Agreement obligates MLAM to reimburse the Trust to the
extent the Trust's expenses (excluding interest, taxes, distribution
fees, brokerage fees and commissions, 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 expense limitation
at the time of such payment.
Pursuant to the distribution plans ("the Distribution Plans")
adopted by the Trust in accordance with Rule 12b-1 under the
Investment Company Act of 1940, the Trust 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:
<PAGE>
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
Trust. 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 January 31, 1995, MLFD earned underwriting
discounts and MLPF&S earned dealer concessions on sales of the
Fund's Class A and Class D Shares as follows:
MLFD MLPF&S
Class A $ 6,671 $93,522
Class D $ 2,021 $27,959
MLPF&S received contingent deferred sales charges of $175,388
relating to transactions in Class B Shares of beneficial interest,
$140 relating to transactions in Class C Shares of beneficial
interest, and $12,204 in commissions on the execution of portfolio
security transactions for the Trust for the six months ended January
31, 1995.
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 MLAM, PSI, MLPF&S, FDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended January 31, 1995 were $ 97,460,749 and
$12,089,624, respectively.
<PAGE>
Net realized and unrealized gains (losses) as of January 31, 1995
were as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 1,904,300 $(18,033,232)
Short-term investments 462 --
Foreign currency transactions (56,309) 992
----------- ------------
Total $ 1,848,453 $(18,032,240)
=========== ============
As of January 31, 1995, net unrealized depreciation for Federal
income tax purposes aggregated $18,033,232, of which $10,878,865
related to appreciated securities and $28,912,097 related to
depreciated securities. At January 31, 1995, the aggregate cost of
investments for Federal income tax purposes was $323,684,963.
4. Shares of Beneficial Interest:
Net increase in net assets derived from beneficial interest
transactions for the six months ended January 31, 1995 and the year
ended July 31, 1994 were $72,529,055 and $12,016,848, respectively.
Transactions in shares of beneficial interest for each class were as
follows:
Class A Shares for the Six Months Dollar
Ended January 31, 1995 Shares Amount
Shares sold 1,281,848 $ 20,370,253
Shares issued to shareholders
in reinvestment of
dividends 24,490 385,380
----------- ------------
Total issued 1,306,338 20,755,633
Shares redeemed (536,770) (8,388,357)
----------- ------------
Net increase 769,568 $ 12,367,276
=========== ============
Class A Shares for the Year Ended Dollar
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
=========== ============
<PAGE>
Class B Shares for the Six Months Dollar
Ended January 31, 1995 Shares Amount
Shares sold 5,371,421 $ 84,495,777
Shares issued to shareholders
in reinvestment of
dividends 28,028 454,893
----------- ------------
Total issued 5,399,449 84,950,670
Shares redeemed (1,880,950) (29,116,662)
Conversion of shares (4,087,113) (61,964,142)
----------- ------------
Net decrease (568,614) $ (6,130,134)
=========== ============
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 C Shares for the Period Dollar
Oct. 21, 1994++ to Jan. 31, 1995 Shares Amount
Shares sold 228,077 $ 3,486,094
Shares issued to shareholders
in reinvestment of dividends 457 6,782
----------- ------------
Total issued 228,534 3,492,876
Shares redeemed (4,153) (62,243)
----------- ------------
Net increase 224,381 $ 3,430,633
=========== ============
[FN]
++Commencement of Operations.
<PAGE>
Class D Shares for the Period Dollar
Oct. 21, 1994++ to Jan. 31, 1995 Shares Amount
Shares sold 173,636 $ 2,655,953
Conversion of shares 4,078,435 61,964,142
Shares issued to shareholders
in reinvestment of dividends 12,215 181,873
----------- ------------
Total issued 4,264,286 64,801,968
Shares redeemed (129,976) (1,940,688)
----------- ------------
Net increase 4,134,310 $ 62,861,280
----------- ------------
[FN]
++Commencement of Operations.
5. Capital Loss Carryforward:
At July 31, 1994, the Trust had a net capital loss carryforward of
approximately $26,694,000, of which $2,786,000 expires in 2000,
$1,863,000 expires in 2001, and $22,045,000 expires in 2002. This
amount will be available to offset like amounts of any future
taxable gains.
