MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
FUND LOGO
Quarterly Report
October 31, 1995
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
Portfolio Strategy
The environment for investments in the natural resource sector
turned negative during the three-month period ended October 31,
1995, primarily because of concerns about future economic growth
prospects worldwide. In the United States, economic growth rebounded
strongly during the third quarter of 1995, as evidenced by a 4.2%
advance in real gross domestic product (GDP). However, recent signs
of weakness in the manufacturing sector and an increase in inventory
levels in some cyclical industries have led some investors to
conclude that the United States is in the late stages of the
economic cycle, increasing the risk of an economic slowdown in the
near future. In many European economies, growth was solid, but below
expectations and thus disappointing to many analysts and investors.
This resulted in a number of downgrades to economic growth rate
estimates for 1996. The uncertainty about future economic growth,
particularly in the industrialized countries, shifted investor
activity away from the commodity cyclical industries. Investors
feared that any slowdown in economic activity could significantly
reduce the demand for many basic materials and have a negative
impact on the earnings prospects for companies involved in these
industries.
<PAGE>
Another factor which contributed to the poor sentiment toward
natural resource stocks was that most commodity prices trended lower
during the quarter. Industrial commodities, such as steels, base
metals, chemicals and some paper products, generally weakened as
lower-than-expected demand led to increased inventories. Oil prices
also trended lower over concerns that the Organization of Petroleum
Exporting Countries (OPEC) might abandon production quotas and enter
into a battle for market share at its upcoming meeting in November.
Reduced inflation expectations and significant forward selling by
gold producers pushed gold prices down near the low end of their
recent trading range.
For the three-month period ended October 31, 1995, the total returns
for the Trust's Class A, Class B, Class C and Class D Shares were
- -6.77%, -7.03%, -7.01% and -6.83%, respectively. (Trust results shown
do not reflect sales charges, and would be lower if sales charges
were included. For complete performance information, including
average annual and aggregate total returns, see pages 4--6 of this
report to shareholders.) Concerns about future worldwide economic
growth prospects and lower commodity prices left most natural
resource-related shares with losses over the period. In addition,
Trust returns were hurt by our large exposure to the Canadian equity
market, where both stocks and the Canadian dollar suffered from the
uncertainty surrounding the secession referendum in Quebec.
In our opinion, there continue to be attractive investment
opportunities in the natural resource sector, even in the relatively
low inflation environment which exists today. Economic expansion is
one of the prime determinants of demand for many basic commodities.
We believe that the current environment of modest worldwide economic
growth and low inflation supports the recent shifts by central banks
toward easing and reinforces the trend toward lower interest rates
in the industrialized nations. This could encourage investors to
focus on the prospects of an extended economic cycle.
We continue to position the Trust to take advantage of the
opportunities presented by this scenario. As a result, there was
little change in our investment strategy during the October quarter.
Despite the risk of a near-term slowdown in earnings momentum, we
are maintaining a large exposure to the industrial side of our
investment universe including the paper, base metal and chemical
sectors. We remain positive on the medium-term outlook for these
industries and believe that high capacity utilization rates, reduced
cost structures and firm commodity prices could potentially lead to
a period of sustained above-average profitability for many of these
companies.
<PAGE>
Portfolio Matters
We continued to increase the Trust's exposure to the base metals
sector, where we believe significant structural changes are
occurring in the industry, particularly in terms of the outlook for
demand. One significant change is that consumption for most of the
base metals is increasingly being dominated by the developing or
emerging economies of the world, with particular strength in the
developing Asian economies. Demand is growing at a rapid pace in
these economies, driven by tremendous infrastructure development
needs and the desire to raise standards of living. Bridges, tunnels,
factories, airports, telecommunications systems and power generation
facilities are being built, and cars, white goods, and consumer
electronic products are being purchased, all of which are heavily
base metal-intensive. Another significant change is that even in the
developed economies, the amount of metal consumed per unit of GDP
appears to be increasing after a steady decline in the 1970s and
1980s. For example, in the United States an increasing amount of
copper per unit of housing is being used because of the trend toward
larger homes which require more copper tubing and copper wiring.
Copper usage per automobile has also increased as more sophisticated
power electronic packages are included in cars. The average aluminum
content per car has increased as car manufacturers continue to
search for lighter materials. These secular changes should keep the
consumption growth of the base metals above the growth rates
experienced during the past two decades and could have the effect of
extending the current cycle for metals demand. Limited new supply
developing over the next couple of years is another positive sign.
We maintained a significant exposure to the paper and forest
products sector. In our opinion, much of the current weakness in
many paper grades is a result of the destocking of inventories which
were built up over the past year in anticipation of price increases.
Continued positive economic activity, along with limited capacity
growth associated with raw material supply constraints, could allow
these inventories to be worked down, leaving operating rates high
and giving the industry greater pricing flexibility. Meanwhile,
valuations in the paper industry are attractive as share prices
appear to be anticipating a sharp downturn in profitability over the
next couple of years. While underlying commodity prices may not
appreciate significantly from current levels, we believe that the
level of current earnings for many of these companies is sustainable
for several years in a reasonably healthy economic environment.
<PAGE>
We maintained a large position in the energy sector. In the near
term, oil prices may remain volatile as news unfolds about possible
civil unrest in some OPEC nations and the potential resumption of
exports from Iraq. However, below-normal inventory levels in the US
and steadily increasing worldwide demand should keep underlying
supply/demand reasonably in balance, which could support a
relatively stable oil price environment. There is some concern that
OPEC may attempt to raise production ceilings at the upcoming
meeting in November in an effort to drive down oil prices and slow
the strong growth in non-OPEC production. OPEC nations are becoming
increasingly frustrated by the fact that most of the incremental
demand for oil is being met by increases in non-OPEC production. We
do not believe that OPEC has much to gain by entering into a battle
for market share, and therefore, we expect the cartel to maintain
current production quotas. Assuming a relatively flat oil price
outlook, we are focusing on companies that have strong production
growth prospects and/or companies that potentially still have
significant restructuring or cost-cutting benefits to realize. We
expect natural gas prices to trend higher and therefore, are
maintaining a significant exposure to natural gas-related
exploration and production companies.
In Conclusion
Despite recent skepticism in the global equity markets toward
natural resource-related stocks, we remain positive on the outlook
for investing in this sector. We believe that a "soft landing"
scenario for the US economy will not put undue pressure on resource-
related commodity prices. In addition, we expect global economic
growth to improve, led by robust growth in the developing Asian
economies and the trend toward lower interest rates in Europe and
Japan. This should keep the demand for basic resources strong, and
should have positive implications for the earnings of many resource-
related companies. Conversely, if economic activity slows,
governments may, in fact, begin to adopt stimulative policies which
could trigger new inflationary pressures.
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
November 17, 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 all of the Trust's shares are presented in the
"Recent Performance Results" table below and the "Performance
Summary" tables on pages 5 and 6. Data for the Trust's Class A and
Class B Shares are presented in the "Average Annual Total Return"
tables on page 6. Data for Class C and Class D Shares are also
presented in the "Aggregate Total Return" tables on page 6.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for all of the Trust's
shares for the 12-month and 3-month periods ended October 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
10/31/95 7/31/95 10/31/94 % Change % Change
<S> <C> <C> <C <C> <C>
ML Global Resources Trust Class A Shares $15.43 $16.70 $16.13 -4.34% -7.60%
ML Global Resources Trust Class B Shares 15.45 16.62 16.10 -4.04 -7.04
ML Global Resources Trust Class C Shares 15.39 16.55 16.09 -4.35 -7.01
ML Global Resources Trust Class D Shares 15.41 16.67 16.13 -4.46 -7.56
ML Global Resources Trust Class A Shares--Total Return -3.01(1) -6.77(2)
ML Global Resources Trust Class B Shares--Total Return -4.03(3) -7.03(3)
ML Global Resources Trust Class C Shares--Total Return -4.01(4) -7.01
ML Global Resources Trust Class D Shares--Total Return -3.27(5) -6.83(6)
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
(1)Percent change includes reinvestment of $0.221 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.149 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.002 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.052 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.199 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.131 per share ordinary
income dividends.
</TABLE>
<PAGE>
PERFORMANCE DATA (continued)
<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--10/31/95 15.14 15.43 -- 0.149 + 2.83
------ ------
Total $0.874 Total $2.170
Cumulative total return as of 10/31/95: +52.36%**
<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**
<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--10/31/95 15.16 15.45 -- 0.002 + 1.93
------ ------
Total $3.423 Total $1.453
Cumulative total return as of 10/31/95: +114.99%**
<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>
Performance Summary--Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $15.93 $15.10 -- $0.052 -4.88%
1/1/95--10/31/95 15.10 15.39 -- -- +1.92
------
Total $0.052
Cumulative total return as of 10/31/95: -3.05%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<PAGE>
PERFORMANCE DATA (concluded)
<TABLE>
Performance Summary--Class D Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $15.96 $15.14 -- $0.068 -4.71%
1/1/95--10/31/95 15.14 15.41 -- 0.131 +2.59
------
Total $0.199
Cumulative total return as of 10/31/95: -2.24%**
<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>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/95 +2.72% -2.68%
Five Years Ended 9/30/95 +4.21 +3.09
Inception (10/24/88)
through 9/30/95 +7.08 +6.25
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/95 +1.69% -2.31%
Five Years Ended 9/30/95 +3.14 +3.14
Ten Years Ended 9/30/95 +9.01 +9.01
[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 9/30/95 +2.37% +1.37%
[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 9/30/95 +3.16% -2.26%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Aluminum 80,000 Alcan Aluminium Ltd. $ 2,093,048 $ 2,530,000 1.1%
25,000 Aluminum Company of America 1,304,508 1,275,000 0.5
248,800 Comalco Ltd. 902,060 1,255,963 0.5
------------ ------------ ------
4,299,616 5,060,963 2.1
Chemicals 53,000 Air Products and Chemicals, Inc. 2,381,320 2,736,125 1.2
640,000 Asahi Chemical Industry Co., Ltd. 4,707,315 4,505,098 1.9
37,000 Dow Chemical Co. 2,596,842 2,539,125 1.1
31,300 du Pont (E.I.) de Nemours & Co. 1,767,614 1,952,338 0.8
97,500 Hanna (M.A.) Co. 1,937,650 2,498,438 1.1
------------ ------------ ------
13,390,741 14,231,124 6.1
Diversified Companies 154,500 Canadian Pacific, Ltd. 2,417,457 2,472,000 1.1
81,000 Coastal Corp. 2,071,800 2,622,375 1.1
145,000 Cyprus Amax Minerals Co. 3,620,701 3,788,125 1.6
90,000 Norcen Energy Resources Ltd. 1,158,729 1,165,673 0.5
185,000 Occidental Petroleum Corp. 3,589,250 3,977,500 1.7
407,500 Renison Goldfields Consolidated Ltd. 1,613,171 1,712,693 0.7
------------ ------------ ------
14,471,108 15,738,366 6.7
Gold 1,088,500 Delta Gold N.L. 2,085,550 2,337,171 1.0
94,000 Driefontein Consolidated Ltd. 1,435,063 1,050,661 0.4
769,661 Newcrest Mining Ltd. 3,298,232 3,164,507 1.3
140,622 Newmont Mining Corp. 5,614,727 5,308,481 2.3
250,000 Placer Dome, Inc. 5,677,853 5,468,750 2.3
324,000 Sante Fe Pacific Gold Corp. 4,617,400 3,199,500 1.4
------------ ------------ ------
22,728,825 20,529,070 8.7
Integrated Oil 41,000 Amoco Corp. 2,293,335 2,618,875 1.1
Companies--Domestic 185,000 Unocal Corp. 5,357,674 4,856,250 2.1
------------ ------------ ------
7,651,009 7,475,125 3.2
<PAGE>
Integrated Oil 700,000 British Petroleum Co. PLC 2,945,348 5,153,318 2.2
Companies-- 16,000 Mobil Corp. 1,557,790 1,612,000 0.7
International 14,600 OMV AG 1,554,378 1,260,654 0.5
149,800 Petro-Canada (Installment Receipts) (a) 706,427 711,550 0.3
78,800 Repsol S.A. 2,272,896 2,355,277 1.0
71,600 Societe Nationale Elf Aquitaine (ADR)* 2,544,624 2,416,500 1.0
101,600 Total S.A. (Class B) 6,049,223 6,285,908 2.7
122,000 Yacimientos Petroliferos Fiscales S.A.--
Sponsored (ADR)* 2,997,272 2,089,250 0.9
------------ ------------ ------
20,627,958 21,884,457 9.3
Metals & Mining 67,000 ASARCO Inc. 1,927,403 2,160,750 0.9
84,100 CRA Ltd. 1,035,447 1,296,043 0.6
155,600 Falconbridge Ltd. (Installment Receipts) (b) 1,257,456 1,464,368 0.6
140,000 Freeport-McMoRan Copper & Gold, Inc. 3,000,786 3,202,500 1.4
2,470,000 M.I.M. Holdings Ltd. 5,396,407 3,328,765 1.4
77,500 Magma Copper Co. 1,332,076 1,298,125 0.6
546,000 Mitsubishi Materials Corp. 2,773,289 2,473,059 1.1
230,000 Nippon Light Metal Company Ltd. 1,366,622 1,249,216 0.5
197,900 Noranda Inc. 3,726,075 3,964,638 1.7
150,000 Outokumpu OY 2,732,694 2,389,775 1.0
38,100 PT Tambang Timah (GDR)** 485,013 433,197 0.2
60,000 Phelps Dodge Corp. 3,296,215 3,802,500 1.6
37,000 QNI Ltd. 69,981 70,993 0.0
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Metals & Mining 380,000 RTZ Corp. PLC (The) $ 4,903,635 $ 5,258,487 2.2%
(concluded) 1,800,000 Savage Resources Ltd. 1,368,175 1,301,994 0.6
345,000 Sumitomo Metal Mining Co. Ltd. 2,877,858 2,729,559 1.2
215,000 Trelleborg 'B' Fria 2,921,179 2,414,347 1.0
901,500 Western Mining Corp. Holdings Ltd. 5,374,821 5,779,506 2.5
------------ ------------ ------
45,845,132 44,617,822 19.1
<PAGE>
Oil & Gas Producers 470,000 Abacan Resources Corp. 1,763,996 1,156,168 0.5
1,099,500 Ampolex Ltd. 3,384,940 2,176,614 0.9
80,000 Anadarko Petroleum Corp. 3,908,022 3,470,000 1.5
115,000 Apache Corp. 3,073,528 2,932,500 1.2
403,000 Chauvco Resources Ltd. 4,669,606 3,604,920 1.5
112,900 Enron Oil & Gas Co. 2,416,647 2,258,000 1.0
477,100 Enterprise Oil PLC 3,121,750 2,527,688 1.1
68,600 Louisiana Land and Exploration Co. (The) 2,718,183 2,426,725 1.0
175,000 Mitchell Energy & Development Corp.
(Class B) 3,666,183 2,843,750 1.2
140,000 Oryx Energy Co. 2,332,787 1,610,000 0.7
68,500 Parker & Parsley Petroleum Co. 1,347,172 1,267,250 0.5
7,500,000 Premier Oil Co. PLC 3,091,256 3,083,925 1.3
675,000 Ranger Oil Ltd. 4,526,339 3,881,250 1.7
103,000 Sonat, Inc. 3,276,567 2,961,250 1.3
20,100 Triton Energy Corp. 672,425 937,162 0.4
18,000 Union Pacific Resources Group Inc. 378,000 409,500 0.2
78,200 Vastar Resources, Inc. 2,135,113 2,209,150 0.9
------------ ------------ ------
46,482,514 39,755,852 16.9
Oil Services 57,800 Coflexip Stena Offshore, Inc. (ADR)* 1,242,700 787,525 0.3
95,700 IHC Caland N.V. 2,078,034 2,727,863 1.2
60,000 Schlumberger Ltd. 3,467,055 3,735,000 1.6
------------ ------------ ------
6,787,789 7,250,388 3.1
Paper & Pulp 242,133 Aracruz Celulose S.A. (ADR)* 970,032 2,239,730 1.0
172,700 Avenor Inc. 3,423,014 3,620,714 1.5
57,000 Georgia-Pacific Corp. 3,636,800 4,702,500 2.0
21,400 International Paper 772,379 791,800 0.3
91,000 Metsa-Serla OY 3,935,508 3,393,599 1.4
60,400 Mo Och Domsjo AB Co. 2,613,099 3,077,220 1.3
120,000 Pope & Talbot, Inc. 2,789,668 1,620,000 0.7
406,496 Slocan Forest Products Ltd. 3,555,171 3,901,331 1.7
117,000 Weyerhaeuser Co. 4,993,809 5,162,625 2.2
39,000 Willamette Industries, Inc. 1,467,138 2,262,000 1.0
------------ ------------ ------
28,156,618 30,771,519 13.1
Petroleum Refining 250,000 Total Petroleum (North America) Ltd. 3,028,198 2,531,250 1.1
Plantations 717,000 Golden Hope Plantations BHD 1,325,785 1,128,689 0.5
480,000 Kuala Lumpur Kepong BHD 983,702 1,293,979 0.5
------------ ------------ ------
2,309,487 2,422,668 1.0
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Steel 71,000 Koninklijke Nederlandsche Hoogovens en
Staalfabrienken N.V. $ 3,078,006 $ 2,433,977 1.0%
815,000 Nippon Steel Corp. 2,776,840 2,708,676 1.2
1,564,000 Sumitomo Metal Industries Ltd. 5,123,983 4,247,333 1.8
------------ ------------ ------
10,978,829 9,389,986 4.0
Wood Products 112,500 Louisiana-Pacific Corp. 3,656,464 2,685,937 1.1
325,000 Pacific Forest Products Ltd. 3,496,173 3,391,726 1.4
146,100 Riverside Forest Products Ltd. 2,401,223 1,987,570 0.8
------------ ------------ ------
9,553,860 8,065,233 3.3
Total Common Stocks 236,311,684 229,723,823 97.7
Face Amount Short-Term Securities
Repurchase $ 5,492,000 UBS Securities Funding Inc., purchased on
Agreements*** 10/31/1995 to yield 5.88% to 11/01/1995 5,492,000 5,492,000 2.3
Total Short-Term Securities 5,492,000 5,492,000 2.3
Total Investments $241,803,684 235,215,823 100.0
============
Liabilities in Excess of Other Assets (78,238) (0.0)
------------ ------
Net Assets $235,137,585 100.0%
============ ======
Net Asset Class A--Based on net assets of $22,137,152 and 1,434,831
Value: shares of beneficial interest outstanding $ 15.43
============
Class B--Based on net assets of $108,179,953 and 7,002,187
shares of beneficial interest outstanding $ 15.45
============
Class C--Based on net assets of $2,203,256 and 143,189
shares of beneficial interest outstanding $ 15.39
============
Class D--Based on net assets of $102,617,224 and 6,659,178
shares of beneficial interest outstanding $ 15.41
============
<PAGE>
<FN>
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
(a)Receipts evidence payment by the Trust of 42% of the purchase
price of common stock of Petro-Canada. The Trust is
obligated to pay the remaining 58%, approximately $949,000, over the
next two years.
(b)Receipts evidence payment by the Trust of 34% of the purchase
price of common stock of Falconbridge Ltd. The Trust is
obligated to pay the remaining 66%, approximately $2,204,000, over
the next two years.
</TABLE>
PORTFOLIO INFORMATION
For the Quarter Ended October 31, 1995
Percent of
Ten Largest Equity Holdings Net Assets
Total S.A. (Class B) 2.7%
Western Mining Corp. Holdings Ltd. 2.5
Placer Dome, Inc. 2.3
Newmont Mining Corp. 2.3
RTZ Corp. PLC (The) 2.2
Weyerhaeuser Co. 2.2
British Petroleum Co. PLC 2.2
Unocal Corp. 2.1
Georgia-Pacific Corp. 2.0
Asahi Chemical Industry Co., Ltd. 1.9
Additions
Aluminum Company of America
*Arcadian Corp.
Driefontein Consolidated Ltd.
Falconbridge Ltd. (Installment Receipts)
*Free State Consolidated Gold Mines Ltd.
Nippon Light Metal Company Ltd.
Nippon Steel Corp.
PT Tambang Timah (GDR)
Petro-Canada (Installment Receipts)
QNI Ltd.
Savage Resources Ltd.
Union Pacific Resources Group Inc.
<PAGE>
Deletions
*Arcadian Corp.
Baker Hughes Inc.
Burlington Resources, Inc.
Falconbridge Ltd.
*Free State Consolidated Gold Mines Ltd.
Mitchell Energy & Development Corp. (Class A)
Petro-Canada
[FN]
*Added and deleted in the same quarter.
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
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
