MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
FUND LOGO
Annual Report
July 31, 1995
<PAGE>
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, NY 10286
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the 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.
<PAGE>
Merrill Lynch
Global Resources Trust
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH GLOBAL RESOURCES TRUST
DEAR SHAREHOLDER
Fiscal Year in Review
The environment for investments in the natural resource sector was
mixed for the 12-month period ended July 31, 1995. Accelerating
worldwide economic growth supported increases in the demand for
basic resources and generally helped push commodity prices higher,
particularly in such industrial sectors as papers, chemicals and
metals. Natural resource-related equities benefited from this
environment and generally outperformed the broad stock market
averages through October 1994.
This outperformance quickly reversed itself in the fourth quarter of
1994. In November, accelerating economic growth, low unemployment
and high capacity utilization rates in the United States prompted
the US Federal Reserve Board to raise interest rates for the sixth
time in less than a year in an effort to contain inflationary
pressures. This latest greater-than-expected 75 basis point (0.75%)
increase changed investor sentiment toward the resource sector.
Investors feared that continued interest rate increases would
significantly slow economic growth and sharply reduce the demand for
basic resources. Chemical, metal, paper and natural gas stocks were
sold aggressively worldwide and generally underperformed the broad
stock market averages during the final quarter of 1994.
<PAGE>
This trend of underperformance continued during the first two months
of 1995 as investors remained nervous about the ability of the US
Federal Reserve Board to achieve a "soft landing" for the US
economy. Most sectors of our universe posted negative returns for
this period. However, sentiment turned positive toward resource-
related shares again in March. Investors generally were encouraged
by signs that US economic growth might be slowing and that we may be
at or near the end of interest rate increases by the US Federal
Reserve Board. This increasingly positive sentiment was reinforced
by the German Bundesbank's unexpected interest rate cut late in
March and by interest rate cuts in Japan and the United States in
July.
For the 12-month period ended July 31, 1995, the total returns for
the Trust's Class A and Class B Shares were +7.05% and +5.95%,
respectively. Since inception (October 21, 1994) through July 31,
1995, the Trust's Class C and Class D Shares had total returns of
+4.26% and +4.93%, respectively. (Trust results shown do not reflect
sales charges, and would be lower if sales charges were included.)
Our decision to focus investments on the industrial side of the
economy, including the base metal and paper and forest product
sectors, enhanced performance during the past 12 months. Paper
stocks continued to benefit from strong industry conditions. High
operating rates and modest capacity expansions gave companies strong
pricing flexibility and much-improved earnings prospects. Share
prices responded positively to this, with many of our diversified
paper company holdings posting double-digit price gains for the
period. The Trust's significant position in base metal companies
also generally benefited performance during the period. Tightening
supply/demand fundamentals, firm commodity prices and attractive
valuations inspired investor interest in this sector.
The Trust's large exposure to the energy sector had a more mixed
effect on performance. Trust returns were enhanced by our exposure
to integrated oil companies. These companies generally posted solid
share price gains, supported by their relatively high dividend
yields, improved chemical margins and ongoing cost cutting efforts,
which allowed many companies to report better-than-expected earnings
during the period. Trust returns suffered from our increased
emphasis on natural gas-related exploration and production
companies, where share prices continued to languish in response to
weak natural gas prices.
<PAGE>
Investment Activities
During the July quarter, there were no significant geographic or
industry allocation changes made in the portfolio. We maintained a
positive investment stance toward the natural resource sector,
reducing the Trust's cash levels to about 2% of net assets. The
Trust's largest exposure remained in the energy sector at about 36%
of net assets. Stock price performance was mixed in this group
during the July quarter as both oil and natural gas prices declined.
We also maintained a significant exposure to the industrial side of
our universe. Investor sentiment improved progressively during the
July quarter toward cyclical industries, encouraged by prospects of
lower interest rates worldwide. Share prices of paper and base metal
companies were particularly strong. We established two new positions
in the base metal sector through the purchase of Comalco Ltd. in
Australia and Outokumpu OY in Finland.
In Conclusion
Looking ahead, we remain optimistic on the outlook for investing in
the natural resources sector. In our opinion, the US economy remains
on track to achieve a soft landing. In addition, global economic
growth should continue to expand at a fairly robust pace, led by
strong growth in the developing economies, particularly in the
Pacific Basin. This should continue to keep the demand for basic
resources on an upward trend and strengthen industry fundamentals,
which in turn should have positive implications for the earnings of
many resource-related companies. We are continuing to focus on the
industrial side of our universe, including investments in the paper
and base metal industries, where a combination of firm commodity
prices, improved capacity utilization rates and reduced cost
structures should lead to an improving earnings outlook. In
addition, company managements in these industries are focusing on
shareholder value-enhancing measures such as increasing dividends,
paying down debt and initiating share repurchase programs, rather
than embarking on significant new capacity expansions. This
management attitude could help extend commodity cycles and support
valuations in these economically sensitive industries.
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
<PAGE>
(Peter A. Lehman)
Peter A. Lehman
Vice President and Portfolio Manager
August 30, 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).
Performance data for all of the Trust's shares are presented in the
"Total Return Based on a $10,000 Investment" graphs on pages 4 and 5
and the "Recent Performance Results" table below. Data for the
Trust's Class A and Class B Shares are presented in the "Performance
Summary" and "Average Annual Total Return" tables on pages 4 and 6.
Data for Class C and Class D Shares are also presented in the
"Aggregate Total Return" tables on page 5.
<PAGE>
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 July 31, 1995 and
for Class C and Class D Shares for the since inception and the 3-
month periods ended July 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.
<TABLE>
Recent Performance Results*
<CAPTION>
12 Month 3 Month
7/31/95 4/30/95 7/31/94++ % Change++ % Change
<S> <C> <C> <C> <C> <C>
ML Global Resources Trust Class A Shares $16.70 $15.92 $15.84 +5.43% +4.90%
ML Global Resources Trust Class B Shares 16.62 15.88 15.72 +5.73 +4.66
ML Global Resources Trust Class C Shares 16.55 15.82 15.93 +3.89 +4.61
ML Global Resources Trust Class D Shares 16.67 15.90 15.96 +4.45 +4.84
ML Global Resources Trust Class A Shares--Total Return +7.05(1) +4.90
ML Global Resources Trust Class B Shares--Total Return +5.95(2) +4.66
ML Global Resources Trust Class C Shares--Total Return +4.26(3) +4.61
ML Global Resources Trust Class D Shares--Total Return +4.93(4) +4.84
<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 $0.035 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.052 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.068 per share ordinary
income dividends.
</TABLE>
<PAGE>
PERFORMANCE DATA (continued)
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Trust's
Class A and Class B Shares compared to the growth of an investment
in the S&P 500 Index, the Lipper Gold Fund's Group Average and the
Lipper Natural Resources Group Average. Beginning and ending values
are:
10/24/88** 7/95
ML Glabal Resources Trust++--
Class A Shares* $ 9,600 $15,485
S&P 500 Index++++ $10,000 $24,568
Lipper Gold Funds Group
Average++++++ $10,000 $12,967
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $16,705
8/02/85** 7/95
ML Global Resources Trust++--
Class B Shares* $10,000 $23,125
S&P 500 Index++++ $10,000 $40,520
Lipper Gold Funds Group
Average++++++ $10,000 $18,829
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $22,538
<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 Group Average 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.
Past performance is not predictive of future performance.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/95 +7.60% +1.95%
Five Years Ended 6/30/95 +4.98 +3.85
Inception (10/24/88)
through 6/30/95 +7.08 +6.22
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/95 +6.51% +2.51%
Five Years Ended 6/30/95 +3.89 +3.89
Inception (8/2/85)
through 6/30/95 +8.46 +8.46
[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 (continued)
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Trust's
Class C and Class D Shares compared to the growth of an investment
in the S&P 500 Index, the Lipper Gold Fund's Group Average and the
Lipper Natural Resources Group Average. Beginning and ending values
are:
10/21/94** 7/95
ML Glabal Resources Trust++--
Class C Shares* $10,000 $10,326
S&P 500 Index++++ $10,000 $12,344
Lipper Gold Funds Group
Average++++++ $10,000 $ 9,548
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $10,409
8/02/85** 7/95
ML Global Resources Trust++--
Class D Shares* $ 9,600 $ 9,942
S&P 500 Index++++ $10,000 $12,344
Lipper Gold Funds Group
Average++++++ $10,000 $ 9,548
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $10,409
<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 Group Average 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.
Past performance is not predictive of future performance.
Aggregate Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/21/94)
through 6/30/95 +0.85% -0.15%
[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*
Inception (10/21/94)
through 6/30/95 +1.46% -3.86%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
<PAGE>
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
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--7/31/95 15.14 16.70 -- -- +10.30
------ ------
Total $0.874 Total $2.021
Cumulative total return as of 7/31/95: +63.43%**
<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**
<S> <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--7/31/95 15.16 16.62 -- -- + 9.63
------ ------
Total $3.423 Total $1.451
Cumulative total return as of 7/31/95: +131.25%**
<PAGE>
<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>
Aluminum 90,000 Alcan Aluminium Ltd. $ 2,356,436 $ 3,048,750 1.1%
424,000 Comalco Ltd. 1,557,844 2,068,018 0.7
------------ ------------ ------
3,914,280 5,116,768 1.8
Chemicals 78,000 Air Products and Chemicals, Inc. 3,451,070 4,368,000 1.5
640,000 Asahi Chemical Industry Co., Ltd. 4,707,315 4,572,467 1.6
37,000 Dow Chemical Co. 2,596,842 2,742,625 1.0
41,300 DuPont (E.I.) de Nemours & Co. 2,313,453 2,767,100 1.0
97,500 Hanna (M.A.) Co. 1,937,650 2,693,438 1.0
------------ ------------ ------
15,006,330 17,143,630 6.1
Diversified Companies 154,500 Canadian Pacific, Ltd. 2,417,458 2,761,688 1.0
90,000 Coastal Corp. 2,302,519 2,801,250 1.0
179,000 Cyprus Amax Minerals Co. 4,500,651 4,989,625 1.8
90,000 Norcen Energy Resources Ltd. 1,158,729 1,353,939 0.5
225,000 Occidental Petroleum Corp. 4,361,550 5,062,500 1.8
407,500 Renison Goldfields Consolidated Ltd. 1,613,171 1,541,850 0.5
------------ ------------ ------
16,354,078 18,510,852 6.6
Gold 1,387,000 ++Delta Gold N.L. 2,730,517 2,716,231 1.0
1,679,100 ++Newcrest Mining Ltd. 7,470,444 7,817,386 2.8
140,622 Newmont Mining Corp. 5,614,727 6,011,591 2.1
250,000 Placer Dome Inc. 5,677,853 6,281,250 2.2
260,000 Sante Fe Pacific Gold Corp. 3,770,398 3,250,000 1.2
------------ ------------ ------
25,263,939 26,076,458 9.3
<PAGE>
Integrated Oil 41,000 Amoco Corp. 2,293,335 2,757,250 1.0
Companies-- 16,000 Mobil Corp. 1,557,790 1,564,000 0.6
Domestic 200,000 Unocal Corp. 5,792,080 5,625,000 2.0
------------ ------------ ------
9,643,205 9,946,250 3.6
Integrated Oil 890,000 British Petroleum Co. PLC 4,237,936 6,743,483 2.4
Companies-- 14,600 OMV AG 1,554,378 1,559,639 0.5
International 321,000 Petro-Canada 2,682,966 3,190,098 1.1
78,800 Repsol, S.A. 2,272,896 2,667,363 0.9
71,600 Societe Nationale Elf Aquitaine (ADR)* 2,544,624 2,801,350 1.0
101,600 Total S.A. (Class B) 6,049,223 6,170,213 2.2
122,000 Yacimientos Petroliferos Fiscales
S.A. (Sponsored) (ADR)* 2,997,273 2,119,750 0.7
------------ ------------ ------
22,339,296 25,251,896 8.8
Metals & Mining 67,000 ASARCO Inc. 1,927,403 2,127,250 0.8
162,200 CRA Ltd. 2,011,572 2,517,182 0.9
277,000 Falconbridge Ltd. 3,843,568 5,505,653 2.0
140,000 Freeport-McMoRan Copper & Gold, Inc. 3,000,786 3,727,500 1.3
2,470,000 M.I.M. Holdings Ltd. 5,396,407 3,541,140 1.3
77,500 Magma Copper Co. 1,332,076 1,433,750 0.5
245,000 Mitsubishi Materials Corp. 1,292,688 1,224,443 0.4
278,500 Noranda Inc. 5,240,418 5,865,563 2.1
77,000 Outokumpu OY 1,385,926 1,508,001 0.5
68,000 Phelps Dodge Corp. 3,672,444 4,369,000 1.6
430,000 (The) RTZ Corp. PLC 5,546,995 6,206,536 2.2
157,000 Sumitomo Metal Mining Co. 1,314,920 1,283,962 0.5
215,000 Trelleborg 'B' Fria 2,921,179 2,775,177 1.0
1,050,000 Western Mining Corp. Holdings Ltd. 6,137,031 6,812,841 2.4
------------ ------------ ------
45,023,413 48,897,998 17.5
</TABLE>
<PAGE>
<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 Producers 470,000 ++Abacan Resource Corp. $ 1,763,996 $ 1,354,121 0.5%
1,099,500 Ampolex Ltd. 3,384,940 2,486,343 0.9
89,000 Anadarko Petroleum Corp. 4,350,002 3,782,500 1.3
115,000 Apache Corp. 3,073,528 3,148,125 1.1
99,000 Burlington Resources, Inc. 3,873,710 3,848,625 1.4
403,000 ++Chauvco Resources Ltd. 4,669,606 4,115,244 1.5
125,900 Enron Oil & Gas Co. 2,695,396 2,722,587 1.0
730,000 Enterprise Oil PLC 4,693,559 4,430,194 1.6
68,600 (The) Louisiana Land and Exploration Co. 2,718,183 2,726,850 1.0
85,600 Mitchell Energy & Development Corp.
(Class A) 1,765,094 1,455,200 0.5
175,000 Mitchell Energy & Development Corp.
(Class B) 3,666,183 2,975,000 1.1
140,000 ++Oryx Energy Co. 2,332,787 2,012,500 0.7
81,000 Parker & Parsley Petroleum Co. 1,593,235 1,569,375 0.6
7,500,000 ++Premier Oil Co. PLC 3,091,256 2,730,341 1.0
675,000 Ranger Oil Ltd. 4,526,339 3,796,875 1.3
103,000 Sonat, Inc. 3,276,567 3,090,000 1.1
44,100 Triton Energy Corp. 1,440,582 2,199,487 0.8
78,200 Vastar Resources, Inc. 2,135,113 2,199,375 0.8
------------ ------------ ------
55,050,076 50,642,742 18.2
Oil Services 130,000 Baker Hughes Inc. 2,501,121 2,876,250 1.0
57,800 Coflexip Stena Offshore, Inc. (ADR)* 1,242,700 1,416,100 0.5
141,000 IHC Caland N.V. 3,098,872 4,355,564 1.5
80,000 Schlumberger Ltd. 4,627,531 5,360,000 1.9
------------ ------------ ------
11,470,224 14,007,914 4.9
Paper & Pulp 242,133 Aracruz Celulose S.A. (ADR)* 970,032 2,966,129 1.1
172,700 Avenor Inc. 3,423,014 4,172,639 1.5
62,000 Georgia-Pacific Corp. 3,962,100 5,347,500 1.9
10,700 International Paper 772,379 904,150 0.3
91,000 Metsa-Serla OY 3,935,508 4,238,118 1.5
60,400 Mo Och Domsjo AB Co. 2,613,099 4,009,532 1.4
120,000 Pope & Talbot, Inc. 2,789,668 1,920,000 0.7
406,496 Slocan Forest Products Ltd. 3,555,171 3,595,014 1.3
117,000 Weyerhaeuser Co. 4,993,809 5,469,750 1.9
48,000 Willamette Industries, Inc. 1,806,620 2,928,000 1.0
------------ ------------ ------
28,821,400 35,550,832 12.6
Petroleum Refining 250,000 Total Petroleum (North America) Ltd. 3,028,198 2,906,250 1.0
Plantations 717,000 Golden Hope Plantations BHD 1,325,785 1,284,266 0.5
480,000 Kuala Lumpur Kepong BHD 983,702 1,563,200 0.6
------------ ------------ ------
2,309,487 2,847,466 1.1
<PAGE>
Steel 71,000 Koninklijke Nederlandsche Hoogovens en
Staalfabrienken N.V. 3,078,006 3,262,311 1.2
1,397,000 ++Sumitomo Metal Industries, Ltd. 4,640,554 4,046,286 1.4
------------ ------------ ------
7,718,560 7,308,597 2.6
Wood Products 200,000 Louisiana-Pacific Corp. 6,751,778 4,925,000 1.7
325,000 Pacific Forest Products Ltd. 3,496,173 3,674,325 1.3
146,100 Riverside Forest Products Ltd. 2,401,223 1,678,392 0.6
------------ ------------ ------
12,649,174 10,277,717 3.6
Total Common Stocks 258,591,660 274,485,370 97.7
</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 $ 5,570,000 PaineWebber Inc., purchased on
Agreement** 7/31/1995 to yield 5.78% to 8/01/1995 $ 5,570,000 $ 5,570,000 2.0%
Total Short-Term Securities 5,570,000 5,570,000 2.0
Total Investments $264,161,660 280,055,370 99.7
============
Other Assets Less Liabilities 740,844 0.3
------------ ------
Net Assets $280,796,214 100.0%
============ ======
<FN>
*American Depositary Receipts (ADR).
**Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
++Non-income producing security.
See Notes to Financial Statements.
<PAGE>
PORTFOLIO INFORMATION
For the Quarter Ended July 31, 1995
Percent of
Ten Largest Equity Holdings Net Assets
Newcrest Mining Ltd. 2.8%
Western Mining Corp. Holdings Ltd. 2.4
British Petroleum Co. PLC 2.4
Placer Dome Inc. 2.2
(The) RTZ Corp. PLC 2.2
Total S.A. (Class B) 2.2
Newmont Mining Corp. 2.1
Noranda Inc. 2.1
Unocal Corp. 2.0
Falconbridge Ltd. 2.0
Additions
Abacan Resource Corp.
Comalco Ltd.
Mitsubishi Materials Corp.
Mobil Corp.
OMV AG
Outokumpu OY
Parker & Parsley Petroleum Co.
Sumitomo Metal Mining Co.
Deletions
Eramet
Renison Goldfields Consolidated Ltd. (Rights)
FINANCIAL INFORMATION
<PAGE>
</TABLE>
<TABLE>
Statement of Assets and Liabilities as of July 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$264,161,660) (Note 1a) $280,055,370
Cash 15,848
Receivables:
Securities sold $ 1,664,207
Dividends 433,598
Beneficial interest sold 311,085 2,408,890
------------
Prepaid registration fees and other assets (Note 1f) 39,040
------------
Total assets 282,519,148
------------
Liabilities: Payables:
Beneficial interest redeemed 701,553
Securities purchased 431,354
Distributor (Note 2) 160,488
Investment adviser (Note 2) 153,443 1,446,838
------------
Accrued expenses and other liabilities 276,096
------------
Total liabilities 1,722,934
------------
Net Assets: Net assets $280,796,214
============
Net Assets Class A Shares of beneficial interest, $0.10 par value, unlimited
Consist of: number of shares authorized $ 172,062
Class B Shares of beneficial interest, $0.10 par value, unlimited
number of shares authorized 853,389
Class C Shares of beneficial interest, $0.10 par value, unlimited
number of shares authorized 16,920
Class D Shares of beneficial interest, $0.10 par value, unlimited
number of shares authorized 644,696
Paid-in capital in excess of par 279,621,426
Undistributed investment income--net 1,099,608
Accumulated realized capital losses on investments and foreign
currency transactions--net (Note 5) (17,507,553)
Unrealized appreciation on investments and foreign
currency transactions--net 15,895,666
------------
Net assets $280,796,214
============
<PAGE>
Net Asset Value: Class A--Based on net assets of $28,728,903 and 1,720,619 shares
of beneficial interest outstanding $ 16.70
============
Class B--Based on net assets of $141,799,990 and 8,533,888 shares
of beneficial interest outstanding $ 16.62
============
Class C--Based on net assets of $2,800,094 and 169,196 shares
of beneficial interest outstanding $ 16.55
============
Class D--Based on net assets of $107,467,227 and 6,446,960 shares
of beneficial interest outstanding $ 16.67
============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Year Ended July 31, 1995
<S> <S> <C> <C>
Investment Dividends (net of $423,302 foreign withholding tax) $ 5,877,622
Income Interest and discount earned 1,437,806
(Notes 1d & 1e): ------------
Total income 7,315,428
------------
Expenses: Account maintenance and distribution fees--Class B (Note 2) $ 2,185,267
Investment advisory fees (Note 2) 1,832,048
Transfer agent fees--Class B (Note 2) 593,121
Printing and shareholder reports 168,074
Transfer agent fees--Class D (Note 2) 150,924
Custodian fees 143,110
Account maintenance fees--Class D (Note 2) 134,156
Registration fees (Note 1f) 133,389
Professional fees 91,587
Transfer agent fees--Class A (Note 2) 73,266
Accounting services (Note 2) 68,488
Trustees' fees and expenses 40,866
Account maintenance and distribution fees--Class C (Note 2) 25,551
Transfer agent fees--Class C (Note 2) 8,928
Pricing fees 5,465
Other 9,113
------------
Total expenses 5,663,353
------------
Investment income--net 1,652,075
------------
<PAGE>
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 9,186,780
(Loss) on Foreign currency transactions--net (53,988) 9,132,792
Investments & ------------
Foreign Change in unrealized appreciation/depreciation on:
Currency Investments--net 6,769,039
Transactions--Net Foreign currency transactions--net (2,317) 6,766,722
(Notes 1b, 1c, ------------ ------------
1e & 3): Net realized and unrealized gain on investments and
foreign currency transactions 15,899,514
------------
Net Increase in Net Assets Resulting from Operations $ 17,551,589
============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended July 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 1,652,075 $ 939,369
Realized gain on investments and foreign currency
transactions--net 9,132,792 1,733,103
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 6,766,722 22,563,268
------------ ------------
Net increase in net assets resulting from operations 17,551,589 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)
------------ ------------
<PAGE>
Beneficial Net increase in net assets derived from beneficial
Interest interest transactions 7,860,033 12,016,848
Transactions ------------ ------------
(Note 4):
Net Assets: Total increase in net assets 24,161,322 36,434,854
Beginning of year 256,634,892 220,200,038
------------ ------------
End of year* $280,796,214 $256,634,892
============ ============
<FN>
*Undistributed investment income--net (Note 1h) $ 1,099,608 $ 859,496
============ ============
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: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 15.84 $ 14.07 $ 14.33 $ 15.38 $ 15.93
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .22 .22 .24 .34 .37
Realized and unrealized gain (loss) on invest-
ments and foreign currency transactions--net .88 1.69 (.26) (.13) (.47)
-------- -------- -------- -------- --------
Total from investment operations 1.10 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 year $ 16.70 $ 15.84 $ 14.07 $ 14.33 $ 15.38
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 7.05% 13.69% (.05%) 1.66% (.57%)
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses 1.06% .92% .95% .97% .95%
Net Assets: ======== ======== ======== ======== ========
Investment income--net 1.34% 1.39% 1.62% 1.82% 2.89%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 28,729 $ 20,054 $ 12,087 $ 11,265 $ 6,699
Data: ======== ======== ======== ======== ========
Portfolio turnover 31.64% 54.87% 66.78% 31.43% 71.42%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effect of sales loads.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<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: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 15.72 $ 14.02 $ 14.26 $ 15.30 $ 15.84
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .10 .05 .09 .13 .31
Realized and unrealized gain (loss) on invest-
ments and foreign currency transactions--net .84 1.70 (.24) (.08) (.56)
-------- -------- -------- -------- --------
Total from investment operations .94 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 year $ 16.62 $ 15.72 $ 14.02 $ 14.26 $ 15.30
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 5.95% 12.52% (1.02%) .53% (1.61%)
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, excluding account maintenance
Net Assets: and distribution fees 1.08% .95% .99% 1.00% .99%
======== ======== ======== ======== ========
Expenses 2.08% 1.95% 1.99% 2.00% 1.99%
======== ======== ======== ======== ========
Investment income--net .31% .35% .60% .94% 1.85%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $141,800 $236,581 $208,113 $254,866 $322,502
Data: ======== ======== ======== ======== ========
Portfolio turnover 31.64% 54.87% 66.78% 31.43% 71.42%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effect of sales loads.
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
July 31, 1995
Increase (Decrease) in Net Asset Value: Class C Class D
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 15.93 $ 15.96
Operating ------------ ------------
Performance: Investment income--net .05 .12
Realized and unrealized gain on investments and foreign
currency transactions--net .62 .66
------------ ------------
Total from investment operations .67 .78
------------ ------------
Less dividends from investment income--net (.05) (.07)
------------ ------------
Net asset value, end of period $ 16.55 $ 16.67
============ ============
<PAGE>
Total Investment Based on net asset value per share 4.26%+++ 4.93%+++
Return:** ============ ============
Ratios to Expenses, excluding account maintenance and distribution fees 1.20%* 1.14%*
Average Net ============ ============
Assets: Expenses 2.20%* 1.39%*
============ ============
Investment income--net .28%* 1.02%*
============ ============
Supplemental Net assets, end of period (in thousands) $ 2,800 $ 107,467
Data: ============ ============
Portfolio turnover 31.64% 31.64%
============ ============
<FN>
*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. 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.
<PAGE>
(a) Valuation of investments--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Trustees of the Trust as
the primary market. Securities which are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written are valued
at the last sale price in the case of exchange-traded options or, in
the case of options traded in the over-the-counter market, the last
asked price. Options purchased are valued at the last sale price in
the case of exchange-traded options or, in the case of options
traded in the over-the-counter market, the last bid price. Short-
term securities are valued at amortized cost, which approximates
market value. Other investments are stated at market value.
Securities and assets for which market value quotations are not
available are valued at their fair value as determined in good faith
by or under the direction of the Trustees of the Trust.
(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.
<PAGE>
* 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 gain or loss 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.
<PAGE>
(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.
(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.
(h) Reclassification--Generally accepted accounting principles
require that certain differences between undistributed net
investment income for financial reporting and tax purposes, if
permanent, be reclassified to accumulated net realized capital
losses. Accordingly, current year's permanent book/tax differences
of $161,663 have been reclassified from undistributed net investment
income to accumulated net realized capital losses. These
reclassifications have no effect on net assets or net asset values
per share.
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.
<PAGE>
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:
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 year ended July 31, 1995, MLFD earned underwriting discounts
and MLPF&S earned dealer concessions on sales of the Trust's Class A
and Class D Shares as follows:
MLFD MLPF&S
Class A $6,956 $97,188
Class D $3,459 $49,663
For the year ended July 31, 1995, MLPF&S received contingent
deferred sales charges of $469,990 relating to transactions in Class
B Shares of beneficial interest, $1,502 relating to transactions in
Class C Shares of beneficial interest, and $20,069 in commissions on
the execution of portfolio security transactions for the Trust for
the year ended July 31, 1995.
<PAGE>
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, MLFDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended July 31, 1995 were $127,098,758 and $87,286,344,
respectively.
Net realized and unrealized gains (losses) as of July 31, 1995 were
as follows:
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $ 9,181,328 $ 15,893,710
Short-term investments 5,452 --
Foreign currency
transactions (53,988) 1,956
------------ ------------
Total $ 9,132,792 $ 15,895,666
============ ============
As of July 31, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $15,893,710, of which $29,297,603 related to
appreciated securities and $13,403,893 related to depreciated
securities. At July 31,1995, the aggregate cost of investments for
Federal income tax purposes was $264,161,660.
4. Shares of Beneficial Interest:
Net increase in net assets derived from beneficial interest
transactions for the years ended July 31, 1995 and July 31, 1994
were $ 7,860,033 and $12,016,848, respectively.
Transactions in shares of beneficial interest for each class were as
follows:
<PAGE>
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 2,372,442 $ 37,625,025
Shares issued to share-
holders in reinvestment of
dividends. 24,490 385,380
------------ -------------
Total issued 2,396,932 38,010,405
Shares redeemed (1,942,431) (31,015,092)
------------ -------------
Net increase 454,501 $ 6,995,313
============ =============
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 B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 6,694,914 $ 105,112,417
Shares issued to shareholders
in reinvestment of dividends. 28,028 454,893
------------ -------------
Total issued 6,722,942 105,567,310
Automatic conversion of
shares (6,950,286) (107,241,311)
Shares redeemed (6,287,107) (99,273,886)
------------ -------------
Net decrease (6,514,451) $(100,947,887)
============ =============
<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 C Shares for the Period Dollar
Oct. 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 406,317 $ 6,241,943
Shares issued to shareholders
in reinvestment of dividends. 456 6,782
------------ -------------
Total issued 406,773 6,248,725
Shares redeemed (237,577) (3,852,799)
------------ -------------
Net increase 169,196 $ 2,395,926
============ =============
[FN]
++Commencement of Operations.
Class D Shares for the Period Dollar
Oct. 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 325,837 $ 5,011,879
Automatic conversion of
shares 6,938,622 107,241,311
Shares issued to share-
holders in reinvestment of
dividends. 12,214 181,873
------------ -------------
Total issued 7,276,673 112,435,063
Shares redeemed (829,713) (13,018,382)
------------ -------------
Net increase 6,446,960 $ 99,416,681
============ =============
[FN]
++Commencement of Operations.
<PAGE>
5. Capital Loss Carryforward:
At July 31, 1995, the Trust had a net capital loss carryforward of
approximately $17,508,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable
gains.
6. Commitments:
At July 31, 1995, the Trust had entered into foreign exchange
contracts under which it had agreed to sell a foreign currency
with a value of approximately $1,671,000.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Merrill Lynch Global 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, 1995, the related statements
of operations for the year then ended and changes in net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period
then ended. These financial statements and the financial highlights
are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at July 31,
1995 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
<PAGE>
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, 1995, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
August 31, 1995
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
All of the ordinary income distributions paid by Merrill Lynch
Global Resources Trust during its taxable year ended July 31, 1995
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.