MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
FUND LOGO
Annual Report
July 31, 1996
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
<PAGE>
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.
Statements and other information herein are as dated and are subject
to change.
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 year ended July 31, 1996. Investor sentiment toward
natural resource-related companies was generally poor through the
end of 1995 in response to concerns about declining commodity prices
and signs of slowing global economic growth. Prices of industrial
commodities such as steels, base metals, chemicals and some paper
products generally weakened as lower-than-expected demand led to
increased inventories. Uncertainty regarding the outcome of the
November meeting of the Organization of Petroleum Exporting
Companies kept crude oil prices near the bottom of their trading
range. Similarly, moderate inflation expectations kept the gold
price in a narrow range.
<PAGE>
While economic statistics released in the United States generally
reflected positive economic growth, signs were beginning to emerge
toward year-end 1995 that suggested the US economy was losing
momentum. In Europe and Japan, growth was generally below forecasted
rates. This led to a number of downgrades to global economic growth
rate estimates for 1996, and shifted investor sentiment away from
the commodity cyclical areas of the equity markets worldwide.
However, investor perceptions regarding the rate of economic growth
changed dramatically during the first quarter of 1996, triggered by
the release of stronger-than-expected employment figures in the
United States for February and March. In Japan, economic statistics
pointed to the continuation of a moderate economic recovery. In the
emerging markets, growth in Asia continued to be strong while growth
in Latin America appeared to be recovering. While the Continental
European economies generally remained weak, European central banks
continued to ease monetary policy in an attempt to stimulate
economic activity. In addition, US commodity prices, as measured by
the Commodity Research Bureau Index, rallied sharply, reaching an
eight-year high. These signs of accelerating global economic
activity prompted investors to shift their attention away from the
negative implications of sluggish worldwide economic growth and
focus instead on the potential for an extended economic cycle.
Natural resource-related stocks rallied strongly and generally
outperformed the broad global stock market averages through the
Trust's April quarter.
This positive sentiment deteriorated sharply during the Trust's July
quarter. Higher market interest rates in the United States raised
investor concern about the sustainability of economic activity in
the United States and led to forecasts of slower economic growth in
the second half of 1996. In addition, economic statistics released
in Japan and Europe suggested that the pace of any economic recovery
in these markets would remain slow. Finally, commodity prices
retreated sharply, with particular weakness in gold and base metals
prices. Share prices of energy-related companies were mixed during
the July quarter, but shares of chemical, paper, base metals and
gold companies were sold aggressively worldwide.
For the year ended July 31, 1996, total returns for the Trust's
Class A, Class B, Class C and Class D Shares were +4.34%, +3.26%,
+3.20% and +4.06%, 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 total
returns, see pages 3--7 of this report to shareholders.)
<PAGE>
The Trust's large exposure to the energy sector, with particular
emphasis on exploration and production companies, enhanced
performance during the past 12 months. Share prices of exploration
and production companies benefited from stronger-than-expected oil
and natural gas prices. Oil prices moved higher in response to
strong demand and low inventory levels, particularly in the United
States. Natural gas prices rose initially as a result of a colder-
than-normal winter which left natural gas inventories at
historically low levels. Natural gas prices have continued to
strengthen on strong demand to refill storage levels in preparation
for this winter's heating season. Our increased exposure to the
precious metals sector also benefited the Trust's performance for
the period. Gold mining stocks posted strong gains as the gold price
broke out of its two-year trading range and moved briefly above $400
per ounce. Trust returns also benefited from a number of takeover/merger
proposals announced during the period. In the energy group, Ampolex Ltd.
received a takeover proposal from Mobil Corp. In the base metals area,
Magma Copper Co. received a takeover bid from BHP Ltd. In the gold
mining industry, Hemlo Gold Mines Inc. received a takeover proposal
from Battle Mountain Gold Co., and Golden Shamrock Mines Ltd.
received a merger proposal from Ashanti Goldfields Co. Ltd.
Our decision to focus investments on the industrial side of the
economy, including the base metals and paper and forest products
sectors, had a mixed effect on the Trust's performance. Base metals
shares rallied strongly at the end of 1995 and during the first
quarter of 1996 as underlying commodity prices trended higher. The
prices of base metals strengthened in response to continued
inventory drawdowns on the major commodity exchanges and in the
belief that an extended economic cycle would continue to tighten the
supply/demand fundamentals in the base metals industry. However,
share prices of base metals companies fell sharply during the last
two months of the Trust's fiscal year, leaving the shares with only
modest gains over the full-year period. Base metals prices fell in
response to uncertainty surrounding the disclosure of huge losses in
copper trading by Sumitomo Metal Mining Co. Ltd. in Japan. The
Trust's exposure to the paper and forest products sector contributed
negatively to performance throughout the year. Share prices of paper
companies declined as prices fell in response to rising inventories
for many paper-related products. The pricing environment in this
industry remains weak, although there is some evidence that
inventories are being worked down and that order levels are
increasing.
<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 and
kept the Trust's cash levels low. The Trust's largest exposure
remained in the energy sector at about 31% of net assets. However,
we did use the strength in stock prices in the energy sector as an
opportunity to reduce our exposure to the group and to realize some
profits in some of the exploration and production companies that
were reaching our price targets. This included partial sales of our
holdings in such companies as Enron Oil & Gas Co., Enterprise Oil
PLC, Sonat Inc. and Vastar Resources, Inc.
We also maintained a large exposure to the base metals sector at
about 23% of net assets. Shares of companies in this sector were
sold aggressively in June and July after the aforementioned dis-
closure of huge losses in copper trading by Sumitomo Metal Mining
Co. Ltd. Prior to this disclosure, we had reduced exposure to copper-
related stocks through the elimination of the Trust's positions in
Freeport-McMoRan Copper & Gold, Inc. and CRA Ltd. and through
partial sales of the Trust's holdings in Phelps Dodge Corp. and
ASARCO Inc. However, the uncertainty which surrounded the Sumitomo
debacle and the general concern over global economic growth
prospects put a damper on all base metals prices, including nickel,
zinc, lead and aluminum. We used this broad indiscriminate sell-off
in base metals shares as an opportunity to add to and to initiate
some new positions in the sector. In our opinion, supply/demand
fundamentals remain tight for many of these commodities. Based on
forecasts of strong demand and limited new supply, conditions could
be favorable in most of these markets for the next couple of years,
which could potentially lead to higher commodity prices. New
positions initiated during the quarter included Alumax, Inc., a US-
based aluminum producer and fabricator, and Centaur Mining &
Exploration Ltd., an emerging nickel and gold producer based in
Australia.
In Conclusion
There continues to be much uncertainty in the financial markets
about the direction and rate of future economic activity. This
uncertainty may put a damper on the near-term performance of economy-
sensitive natural resource stocks. However, we believe the broad
macroeconomic environment supports a trend toward synchronized
growth in both the industrialized and developing economies. This
should support the demand for basic resources and should improve the
earnings prospects for many natural resource-related companies.
Sincerely,
<PAGE>
(Arthur Zeikel)
Arthur Zeikel
President
(Peter A. Lehman)
Peter A. Lehman
Vice President and Portfolio Manager
September 6, 1996
IMPORTANT TAX INFORMATION (unaudited)
<TABLE>
The following information summarizes all per share distributions
paid by Merrill Lynch Global Resources Trust during its taxable year
ended July 31, 1996:
<CAPTION>
Record Payable Qualifying Domestic Total Foreign Taxes Long-Term
Date Date Ordinary Income Ordinary Income Paid or Withheld Capital Gains
<S> <S> <S> <C> <C> <C> <C>
Class A 09/06/95 09/14/95 $.148836 $.148836 $.026191 --
Class B 09/06/95 09/14/95 $.002008 $.002008 $.026191 --
Class C 09/06/95 09/14/95 -- -- -- --
Class D 09/06/95 09/14/95 $.131034 $.131034 $.026191 --
The qualifying domestic ordinary income qualifies for the dividends
received deduction for corporations.
The foreign taxes paid or withheld represent taxes incurred by the
Trust on dividends received by the Trust from foreign sources.
Foreign taxes paid or withheld should be included as foreign source
income with an offsetting deduction from gross income or as a credit
for taxes paid to foreign governments. You should consult your tax
adviser regarding the appropriate treatment of foreign taxes paid.
Please retain this information for your records.
</TABLE>
<PAGE>
PERFORMANCE DATA
About Fund Performance
Investors are 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. (There is no initial sales charge for
automatic share conversions.)
*Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
*Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. 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)
Total Return Based on a $10,000 Investment--Class A Shares and Class B Shares
<PAGE>
A line graph depicting the growth of an investment in the Fund's Class A Shares
compared to growth of an investment in the S&P 500 Index, Lipper Gold Funds
Group Average and Lipper Natural Resources Fund Group Average. Beginning
and ending values are:
10/24/88** 7/96
ML Global Resources Trust++--
Class A Shares* $ 9,475 $16,157
S&P 500 Index++++ $10,000 $28,627
Lipper Gold Funds Group Average++++++ $10,000 $14,417
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $19,596
A line graph depicting the growth of an investment in the Fund's Class B Shares
compared to growth of an investment in the S&P 500 Index, Lipper Gold Funds
Group Average and Lipper Natural Resources Funds Group Average. Beginning
and ending values are:
7/86 7/96
ML Global Resources Trust++--
Class B Shares* $10,000 $23,157
S&P 500 Index++++ $10,000 $36,990
Lipper Gold Funds Group Average++++++ $10,000 $22,841
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $27,341
[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 unmanged 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 Group Average 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--Class A Shares and Class B Shares
<PAGE>
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/96 +11.78% +5.91%
Five Years Ended 6/30/96 + 7.17 +6.02
Inception (10/24/88)
through 6/30/96 + 7.68 +6.92
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/96 +10.59% +6.59%
Five Years Ended 6/30/96 + 6.08 +6.08
Ten Years Ended 6/30/96 + 8.67 +8.67
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (continued)
Total Return Based on a $10,000 Investment--Class C Shares and Class D Shares
A line graph depicting the growth of an investment in the Fund's Class C Shares
compared to growth of an investment in the S&P 500 Index, Lipper Gold Funds
Group Average and Lipper Natural Resources Funds Group Average. Beginning
and ending values are:
10/21/94** 7/96
ML Global Resources Trust++--
Class C Shares* $10,000 $10,760
S&P 500 Index++++ $10,000 $14,382
Lipper Gold Funds Group Average++++++ $10,000 $10,618
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $12,083
<PAGE>
A line graph depicting the growth of an investment in the Fund's Class D Shares
compared to growth of an investment in the S&P 500 Index, Lipper Gold Funds
Group Average and Lipper Natural Resources Funds Group Average. Beginning
and ending values are:
10/21/94** 7/96
ML Global Resources Trust++--
Class D Shares* $ 9,475 $10,346
S&P 500 Index++++ $10,000 $14,382
Lipper Gold Funds Group Average++++++ $10,000 $10,618
Lipper Natural Resources Funds
Group Average++++++++ $10,000 $12,083
[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 Group Average 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--Class C Shares and Class D Shares
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 6/30/96 +10.56% +9.56%
Inception (10/21/94)
through 6/30/96 + 6.64 +6.64
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced
to 0% after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 6/30/96 +11.49% +5.63%
Inception (10/21/94)
through 6/30/96 + 7.55 +4.18
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<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
1995 15.14 16.51 -- 0.149 +10.03
1/1/96--7/31/96 16.51 17.27 -- -- + 4.60
------ ------
Total $0.874 Total $2.170
Cumulative total return as of 7/31/96: +70.53%**
<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
1995 15.16 16.51 -- 0.002 + 8.92
1/1/96--7/31/96 16.51 17.16 -- -- + 3.94
------ ------
Total $3.423 Total $1.453
Cumulative total return as of 7/31/96: +138.79%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<PAGE>
<TABLE>
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%
1995 15.10 16.44 -- -- +8.87
1/1/96--7/31/96 16.44 17.08 -- -- +3.89
------
Total $0.052
Cumulative total return as of 7/31/96: +7.60%**
<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>
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%
1995 15.14 16.49 -- 0.131 +9.78
1/1/96--7/31/96 16.49 17.21 -- -- +4.37
------
Total $0.199
Cumulative total return as of 7/31/96: +9.18%**
<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>
Recent Performance Results*
<CAPTION>
12 Month 3 Month
7/31/96 4/30/96 7/31/95 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Resources Trust Class A Shares $17.27 $18.60 $16.70 +3.41% -7.15%
ML Global Resources Trust Class B Shares 17.16 18.53 16.62 +3.25 -7.39
ML Global Resources Trust Class C Shares 17.08 18.45 16.55 +3.20 -7.43
ML Global Resources Trust Class D Shares 17.21 18.55 16.67 +3.24 -7.22
ML Global Resources Trust Class A Shares--Total Return +4.34(1) -7.15
ML Global Resources Trust Class B Shares--Total Return +3.26(2) -7.39
ML Global Resources Trust Class C Shares--Total Return +3.20 -7.43
ML Global Resources Trust Class D Shares--Total Return +4.06(3) -7.22
<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 $0.149 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.002 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.131 per share ordinary
income dividends.
</TABLE>
PORTFOLIO INFORMATION (unaudited)
For the Quarter Ended July 31, 1996
Percent of
Ten Largest Equity Holdings Net Assets
Newmont Mining Corp. 2.6%
British Petroleum Co. PLC 2.6
WMC Ltd. 2.5
Total S.A. (Class B) 2.3
Santa Fe Pacific Gold Corp. 2.3
Sumitomo Metal Industries, Ltd. 2.2
Nippon Steel Corp. 2.1
RTZ Corp. PLC (The) 2.0
Placer Dome Inc. 2.0
Georgia-Pacific Corp. 1.8
Additions
Alumax, Inc.
Asahi Glass Co., Ltd.
Centaur Mining & Exploration Ltd.
Great Central Mines N.L.
Pancanadian Petroleum Ltd.
Savage Resources Ltd. (Warrants)
<PAGE>
Deletions
Acacia Resources Ltd.
Ampolex Ltd.
CRA Ltd.
Freeport-McMoRan Copper & Gold, Inc.
Golden Shamrock Mines Ltd.
Hemlo Gold Mines Inc.
M.I.M. Holdings Ltd. (Rights)
<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 80,000 Alcan Aluminium, Ltd. $ 2,093,048 $ 2,380,000 1.1%
40,000 ++Alumax, Inc. 1,317,446 1,225,000 0.5
20,000 Aluminum Company of America 1,046,083 1,160,000 0.5
------------ ------------ ------
4,456,577 4,765,000 2.1
Chemicals 36,000 Air Products and Chemicals, Inc. 1,622,124 1,921,500 0.8
568,000 Asahi Chemical Industry Co., Ltd. 4,208,558 3,880,580 1.7
92,000 BASF AG 2,202,639 2,471,875 1.1
37,000 Dow Chemical Co. (The) 2,596,842 2,751,875 1.2
38,600 du Pont (E.I.) de Nemours & Co. 2,355,327 3,116,950 1.3
68,250 Hanna (M.A.) Co. 904,237 1,296,750 0.6
------------ ------------ ------
13,889,727 15,439,530 6.7
Diversified Companies 102,000 Asahi Glass Co., Ltd. 1,223,974 1,164,623 0.5
119,500 Canadian Pacific, Ltd. 1,859,733 2,599,125 1.1
42,100 Coastal Corp. 1,074,580 1,568,225 0.7
145,000 Cyprus Amax Minerals Co. 3,620,701 3,117,500 1.4
90,000 Norcen Energy Resources Ltd. 1,158,729 1,558,952 0.7
125,000 Occidental Petroleum Corp. 2,430,650 2,796,875 1.2
214,300 RGC Ltd. 845,375 1,019,430 0.4
------------ ------------ ------
12,213,742 13,824,730 6.0
Gold 100,000 ++Amax Gold, Inc. 629,530 575,000 0.3
94,500 Ashanti Goldfields Co. Ltd. (GDR)** 2,346,106 1,653,750 0.7
122,500 Cambior Inc. 1,625,848 1,582,515 0.7
903,900 ++Delta Gold N.L. 1,698,537 2,160,425 0.9
163,200 Driefontein Consolidated Ltd. 2,534,252 2,118,305 0.9
406,000 ++Great Central Mines N.L. 1,291,053 1,130,548 0.5
251,100 Newcrest Mining Ltd. 1,086,013 908,977 0.4
120,622 Newmont Mining Corp. 4,749,193 5,955,711 2.6
195,000 Placer Dome Inc. 4,363,154 4,558,125 2.0
131,500 Prime Resources Group, Inc. 1,286,428 976,201 0.4
390,000 Santa Fe Pacific Gold Corp. 5,287,327 5,216,250 2.3
118,000 ++TVX Gold Inc. 960,815 914,500 0.4
------------ ------------ ------
27,858,256 27,750,307 12.1
<PAGE>
Integrated Oil 36,000 Amoco Corp. 2,013,660 2,407,500 1.0
Companies--Domestic 118,000 Unocal Corp. 3,417,327 3,849,750 1.7
------------ ------------ ------
5,430,987 6,257,250 2.7
Integrated Oil 650,000 British Petroleum Co. PLC 2,715,033 5,881,430 2.6
Companies-- 11,000 Mobil Corp. 1,070,981 1,214,125 0.5
International 14,600 OMV AG 1,554,378 1,357,264 0.6
149,800 Petro-Canada (Installment Receipts) (a) 706,427 954,975 0.4
78,800 Repsol S.A. 2,272,896 2,646,947 1.2
103,100 Societe Nationale Elf Aquitaine (ADR)* 3,717,503 3,711,600 1.6
73,600 Total S.A. (Class B) 4,466,379 5,287,124 2.3
122,000 Yacimientos Petroliferos Fiscales S.A.
(Sponsored) (ADR)* 2,997,273 2,562,000 1.1
------------ ------------ ------
19,500,870 23,615,465 10.3
</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>
Metals & Mining 56,900 ASARCO Inc. $ 1,644,835 $ 1,365,600 0.6%
870,000 ++Centaur Mining & Exploration Ltd. 1,269,942 1,218,030 0.5
141,100 Falconbridge Ltd. (Installment
Receipts) (b) 2,117,890 1,956,299 0.8
38,800 Inco Ltd. 1,284,094 1,193,100 0.5
267,800 Industrias Penoles, S.A. de C.V. 1,202,241 1,112,444 0.5
2,470,000 M.I.M. Holdings Ltd. 5,396,407 2,884,923 1.2
75,000 Minsur S.A. 597,621 670,187 0.3
446,000 Mitsubishi Materials Corp. 2,245,661 2,254,001 1.0
230,000 Nippon Light Metal Co. Ltd. 1,366,622 1,282,920 0.6
182,900 Noranda Inc. 3,446,968 3,667,318 1.6
150,000 Outokumpu OY 2,732,694 2,707,642 1.2
53,100 ++++P.T. Tambang Timah (GDR)** 661,263 842,963 0.4
490,000 Pasminco Ltd. 590,531 708,758 0.3
35,200 Phelps Dodge Corp. 2,053,082 2,068,000 0.9
615,000 QNI Ltd. 1,235,188 1,146,443 0.5
321,100 RTZ Corp. PLC (The) 4,141,383 4,640,196 2.0
32,000 Rio Algom Ltd. 619,108 598,544 0.3
2,220,000 Savage Resources Ltd. 1,684,287 1,974,746 0.9
222,000 Savage Resources Ltd. (Warrants) (d) 29,591 49,798 0.0
275,000 Sumitomo Metal Mining Co. Ltd. 2,291,588 2,344,642 1.0
215,000 Trelleborg 'B' Fria 2,921,179 2,668,059 1.2
854,400 WMC Ltd. (c) 5,101,474 5,683,554 2.5
------------ ------------ ------
44,633,649 43,038,167 18.8
<PAGE>
Oil & Gas Producers 115,000 Apache Corp. 3,073,528 3,263,125 1.4
16,500 ++Belco Oil & Gas Corp. 313,500 474,375 0.2
403,000 ++Chauvco Resources, Ltd. 4,669,606 3,006,368 1.3
43,700 Enron Oil & Gas Co. 936,324 1,092,500 0.5
123,200 ++Enserch Exploration Inc. 1,228,418 1,108,800 0.5
389,900 Enterprise Oil PLC 2,584,308 2,909,652 1.3
474,000 Lasmo PLC 1,285,432 1,322,785 0.6
38,300 Louisiana Land and Exploration Co. (The) 1,566,743 2,068,200 0.9
175,000 Mitchell Energy & Development Corp.
(Class B) 3,666,183 3,084,375 1.3
140,000 ++Oryx Energy Co. 2,332,787 2,205,000 1.0
15,000 Pancanadian Petroleum Ltd. 574,807 507,642 0.2
5,359,300 Premier Oil Co. PLC 2,176,843 2,374,650 1.0
550,000 Ranger Oil Ltd. 3,694,764 3,850,000 1.7
95,900 Saga Petroleum A.S. 1,262,577 1,400,770 0.6
43,100 Sonat Inc. 1,364,019 1,837,138 0.8
51,400 Vastar Resources, Inc. 1,384,713 1,773,300 0.8
------------ ------------ ------
32,114,552 32,278,680 14.1
Oil Services 66,200 Coflexip Stena Offshore, Inc. (ADR)* 1,405,958 1,191,600 0.5
50,700 IHC Caland N.V. 1,065,972 2,484,843 1.1
28,000 Schlumberger Ltd. 1,609,623 2,240,000 1.0
------------ ------------ ------
4,081,553 5,916,443 2.6
Paper & Pulp 192,133 Aracruz Celulose S.A. (ADR)* 769,965 1,633,130 0.7
168,700 Avenor Inc. 3,241,945 2,670,469 1.2
85,000 Empresa Nacional de Celulosas S.A. (ENCE) 1,253,909 1,123,139 0.5
57,000 Georgia-Pacific Corp. 3,636,800 4,260,750 1.8
31,400 International Paper Co. 1,181,729 1,189,275 0.5
455,000 Metsa Serla OY 3,935,508 3,244,713 1.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Value Percent of
Industries Shares Held Common Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Paper & Pulp 90,000 Mo Och Domsjo AB $ 2,005,224 $ 2,295,015 1.0%
(concluded) 406,496 Slocan Forest Products Ltd. 3,555,171 3,846,032 1.7
50,400 UPM-Kymmene Corp. (e) 895,347 1,106,322 0.5
97,000 Weyerhaeuser Co. 4,126,965 4,049,750 1.8
39,000 Willamette Industries, Inc. 1,467,138 2,262,000 1.0
------------ ------------ ------
26,069,701 27,680,595 12.1
<PAGE>
Petroleum Refining 250,000 Total Petroleum (North America), Ltd. 3,028,198 2,562,500 1.1
Plantations 717,000 Golden Hope Plantations BHD 1,325,785 1,120,762 0.5
720,000 Kuala Lumpur Kepong BHD 983,702 1,731,463 0.7
------------ ------------ ------
2,309,487 2,852,225 1.2
Steel 472,000 British Steel PLC 1,240,738 1,302,528 0.6
703,000 ++Kobe Steel Ltd. 2,038,466 1,908,002 0.8
71,000 Koninklijke Nederlansche Hoogovens en
Staalfabrienken N.V. 3,078,006 2,397,168 1.1
1,438,000 Nippon Steel Corp. 4,907,419 4,777,632 2.1
1,710,000 Sumitomo Metal Industries, Ltd. 5,538,546 5,137,202 2.2
------------ ------------ ------
16,803,175 15,522,532 6.8
Wood Products 92,500 Louisiana-Pacific Corp. 2,943,595 1,884,687 0.8
115,000 ++Pacific Forest Products Ltd. 1,270,696 1,368,450 0.6
146,100 Riverside Forest Products Ltd. 2,401,223 1,807,642 0.8
------------ ------------ ------
6,615,514 5,060,779 2.2
Total Common Stocks 219,005,988 226,564,203 98.8
Face Amount Short-Term Securities
Repurchase $ 3,058,000 UBS Securities Funding, Inc., purchased on
Agreement*** 7/31/1996 to yield 5.61% to 8/01/1996 3,058,000 3,058,000 1.4
Total Short-Term Securities 3,058,000 3,058,000 1.4
Total Investments $222,063,988 229,622,203 100.2
============
Liabilities in Excess of Other Assets (385,355) (0.2)
------------ ------
Net Assets $229,236,848 100.0%
============ ======
<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 $926,710, over the next year.
(b)Receipts evidence payment by the Trust of 67% of the purchase
price of common stock of Falconbridge Ltd. The Trust is obligated to
pay the remaining 33%, approximately $975,582, over the next two years.
(c)Formerly Western Mining Corp. Holdings Ltd.
(d)Warrants entitle the Fund to purchase a predetermined number of
shares of common stock. The puchase price and number of shares are
subject to adjustment under certain conditions until the expiration date.
(e)Created as a result of the merger of Kymmene Corporation and
Repola Ltd.
++Non-income producing security.
++++Restricted security as to resale. The value of the Trust's
investment in restricted securities was approximately $843,000,
respresenting 0.4% of net assets.
<PAGE>
Value
Issue Acquisition Dates Cost (Note 1a)
P.T. Tambang Timah 10/06/1995-
(GDR) 11/22/1995 $661,263 $842,963
$661,263 $842,963
======== ========
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of July 31, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$222,063,988) (Note 1a) $ 229,622,203
Cash 117
Receivables:
Dividends $ 429,444
Beneficial interest sold 127,820 557,264
---------------
Prepaid registration fees and other assets (Note 1f) 36,709
--------------
Total assets 230,216,293
--------------
Liabilities: Payables:
Beneficial interest redeemed 460,435
Investment adviser (Note 2) 127,276
Distributor (Note 2) 115,626 703,337
---------------
Accrued expenses and other liabilities 276,108
---------------
Total liabilities 979,445
---------------
Net Assets: Net assets $ 229,236,848
===============
<PAGE>
Net Assets Class A Shares of beneficial interest, $0.10 par value,
Consist of: unlimited number of shares authorized $ 131,618
Class B Shares of beneficial interest, $0.10 par value,
unlimited number of shares authorized 549,062
Class C Shares of beneficial interest, $0.10 par value,
unlimited number of shares authorized 19,835
Class D Shares of beneficial interest, $0.10 par value,
unlimited number of shares authorized 632,784
Paid-in capital in excess of par 221,240,321
Undistributed investment income--net 1,625,242
Accumulated realized capital losses on investments and foreign
currency transactions--net (Note 5) (2,522,764)
Unrealized appreciation on investments and foreign currency
transactions--net 7,560,750
---------------
Net assets $ 229,236,848
===============
Net Asset Value: Class A--Based on net assets of $22,726,204 and 1,316,184 shares
of beneficial interest outstanding $ 17.27
===============
Class B--Based on net assets of $94,199,212 and 5,490,624 shares
of beneficial interest outstanding $ 17.16
===============
Class C--Based on net assets of $3,387,854 and 198,353 shares
of beneficial interest outstanding $ 17.08
===============
Class D--Based on net assets of $108,923,578 and 6,327,839 shares
of beneficial interest outstanding $ 17.21
===============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Year Ended July 31, 1996
<S> <S> <C> <C>
Investment Dividends (net of $533,374 foreign withholding tax) $ 5,430,923
Income Interest and discount earned 228,046
(Notes 1d & 1e): ---------------
Total income 5,658,969
---------------
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 1,487,239
Account maintenance and distribution fees--Class B (Note 2) 1,100,129
Transfer agent fees--Class B (Note 2) 287,384
Account maintenance fees--Class D (Note 2) 277,750
Transfer agent fees--Class D (Note 2) 239,495
Custodian fees 155,769
Printing and shareholder reports 137,012
Professional fees 73,177
Accounting services (Note 2) 61,383
Registration fees (Note 1f) 52,562
Transfer agent fees--Class A (Note 2) 52,004
Trustees' fees and expenses 38,226
Account maintenance and distribution fees--Class C (Note 2) 27,207
Transfer agent fees--Class C (Note 2) 7,290
Pricing fees 3,635
Other 9,217
---------------
Total expenses 4,009,479
---------------
Investment income--net 1,649,490
---------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 15,090,301
(Loss) on Foreign currency transactions--net (105,512) 14,984,789
Investments & ---------------
Foreign Currency Change in unrealized appreciation on:
Transactions--Net Investments--net (8,335,495)
(Notes 1b, 1c, Foreign currency transactions--net 579 (8,334,916)
1e & 3): --------------- ---------------
Net realized and unrealized gain on investments and
foreign currency transactions 6,649,873
---------------
Net Increase in Net Assets Resulting from Operations $ 8,299,363
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
For the Year Ended July 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 1,649,490 $ 1,652,075
Realized gain on investments and foreign currency
transactions--net 14,984,789 9,132,792
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net (8,334,916) 6,766,722
--------------- ---------------
Net increase in net assets resulting from operations 8,299,363 17,551,589
--------------- ---------------
Dividends to Investment income--net:
Shareholders Class A (238,068) (426,768)
(Note 1g): Class B (15,913) (570,653)
Class C -- (7,419)
Class D (869,875) (245,460)
--------------- ---------------
Net decrease in net assets resulting from dividends
to shareholders (1,123,856) (1,250,300)
--------------- ---------------
Beneficial Net increase (decrease) in net assets derived from beneficial
Interest interest transactions (58,734,873) 7,860,033
Transactions --------------- ---------------
(Note 4):
Net Assets: Total increase (decrease) in net assets (51,559,366) 24,161,322
Beginning of year 280,796,214 256,634,892
--------------- ---------------
End of year* $ 229,236,848 $ 280,796,214
=============== ===============
<FN>
*Undistributed investment income--net $ 1,625,242 $ 1,099,608
=============== ===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
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: 1996++++ 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 16.70 $ 15.84 $ 14.07 $ 14.33 $ 15.38
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .22 .22 .22 .24 .34
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .50 .88 1.69 (.26) (.13)
--------- --------- --------- --------- ---------
Total from investment operations .72 1.10 1.91 (.02) .21
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.15) (.24) (.14) (.24) (.47)
Realized gain on investments--net -- -- -- -- (.79)
--------- --------- --------- --------- ---------
Total dividends and distributions (.15) (.24) (.14) (.24) (1.26)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 17.27 $ 16.70 $ 15.84 $ 14.07 $ 14.33
========= ========= ========= ========= =========
Total Investment Based on net asset value per share 4.34% 7.05% 13.69% (.05%) 1.66%
Return:* ========= ========= ========= ========= =========
Ratios to Average Expenses 1.03% 1.06% .92% .95% .97%
Net Assets: ========= ========= ========= ========= =========
Investment income--net 1.26% 1.34% 1.39% 1.62% 1.82%
========= ========= ========= ========= =========
Supplemental Net assets, end of year (in thousands) $ 22,726 $ 28,729 $ 20,054 $ 12,087 $ 11,265
Data: ========= ========= ========= ========= =========
Portfolio turnover 26.48% 31.64% 54.87% 66.78% 31.43%
========= ========= ========= ========= =========
Average commission rate paid++++++ $ .0223 -- -- -- --
========= ========= ========= ========= =========
<PAGE>
<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: 1996++++ 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 16.62 $ 15.72 $ 14.02 $ 14.26 $ 15.30
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .03 .10 .05 .09 .13
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .51 .84 1.70 (.24) (.08)
--------- --------- --------- --------- ---------
Total from investment operations .54 .94 1.75 (.15) .05
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net --++ (.04) (.05) (.09) (.30)
Realized gain on investments--net -- -- -- -- (.79)
--------- --------- --------- --------- ---------
Total dividends and distributions -- (.04) (.05) (.09) (1.09)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 17.16 $ 16.62 $ 15.72 $ 14.02 $ 14.26
========= ========= ========= ========= =========
Total Investment Based on net asset value per share 3.26% 5.95% 12.52% (1.02%) .53%
Return:* ========= ========= ========= ========= =========
Ratios to Average Expenses 2.07% 2.08% 1.95% 1.99% 2.00%
Net Assets: ========= ========= ========= ========= =========
Investment income--net .20% .31% .35% .60% .94%
========= ========= ========= ========= =========
Supplemental Net assets, end of year (in thousands) $ 94,199 $ 141,800 $ 236,581 $ 208,113 $ 254,866
Data: ========= ========= ========= ========= =========
Portfolio turnover 26.48% 31.64% 54.87% 66.78% 31.43%
========= ========= ========= ========= =========
Average commission rate paid++++++ $ .0223 -- -- -- --
========= ========= ========= ========= =========
<FN>
*Total investment returns exclude the effect of
sales loads.
++Amount is less than $.01 per share.
++++Based on average shares outstanding during
the period.
++++++For fiscal years beginning on or after September 1, 1995,
the Fund is required to disclose its average commission
rate per share for purchases and sales of equity
securities.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
Class C Class D
For the For the
For the Period For the Period
The following per share data and ratios have been derived Year Oct. 21, Year Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996++++ 1995 1996++++ 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 16.55 $ 15.93 $ 16.67 $ 15.96
Operating --------- --------- --------- ---------
Performance: Investment income--net .04 .05 .17 .12
Realized and unrealized gain on investments
and foreign currency transactions--net .49 .62 .50 .66
--------- --------- --------- ---------
Total from investment operations .53 .67 .67 .78
--------- --------- --------- ---------
Less dividends from investment income--net -- (.05) (.13) (.07)
--------- --------- --------- ---------
Net asset value, end of period $ 17.08 $ 16.55 $ 17.21 $ 16.67
========= ========= ========= =========
Total Investment Based on net asset value per share 3.20% 4.26%+++ 4.06% 4.93%+++
Return:** ========= ========= ========= =========
Ratios to Average Expenses 2.07% 2.20%* 1.27% 1.39%*
Net Assets: ========= ========= ========= =========
Investment income--net .27% .28%* 1.00% 1.02%*
========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 3,388 $ 2,800 $ 108,924 $ 107,467
Data: ========= ========= ========= =========
Portfolio turnover 26.48% 31.64% 26.48% 31.64%
========= ========= ========= =========
Average commission rate paid++++++ $ .0223 -- $ .0223 --
========= ========= ========= =========
<FN>
*Annualized.
**Total investment returns exclude the effect of
sales loads.
++Commencement of Operations.
++++Based on average shares outstanding during
the period.
++++++For fiscal years beginning on or after September 1, 1995,
the Fund is required to disclose its average commission
rate per share for purchases and sales of equity securities.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 Fund 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--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 other 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.
<PAGE>
* 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.
(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.
<PAGE>
(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, distri-
bution 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 MLAM 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:
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.
<PAGE>
For the year ended July 31, 1996, 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 $ 268 $ 3,247
Class D $2,122 $29,197
For the year ended July 31, 1996, MLPF&S received contingent
deferred sales charges of $316,546 and $1,567 relating to
transactions in Class B and C Shares, respectively.
In addition, MLPF&S received $22,095 in commissions on the execution
of portfolio security transactions for the Fund for the year ended
July 31, 1996.
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, 1996 were $64,645,892 and $119,292,273,
respectively.
NOTES TO FINANCIAL SATEMENTS (concluded)
Net realized and unrealized gains (losses) as of July 31, 1996 were
as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $15,090,301 $ 7,558,215
Foreign currency transactions (105,512) 2,535
----------- -----------
Total $14,984,789 $ 7,560,750
=========== ===========
<PAGE>
As of July 31, 1996, net unrealized appreciation for Federal income
tax purposes aggregated $7,558,215, of which $22,716,875 related to
appreciated securities and $15,158,660 related to depreciated
securities. At July 31, 1996, the aggregate cost of investments for
Federal income tax purposes was $222,063,988.
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial
interest transactions was $(58,734,873) and $7,860,033 for the
years ended July 31, 1996 and July 31, 1995, respectively.
Transactions in shares of beneficial interest for each class were as
follows:
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 470,673 $ 8,069,980
Shares issued to shareholders
in reinvestment of dividends 12,995 214,811
------------- -------------
Total issued 483,668 8,284,791
Shares redeemed (888,103) (14,845,546)
------------- -------------
Net decrease (404,435) $ (6,560,755)
============= =============
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 2,372,442 $ 37,625,025
Shares issued to shareholders
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
============= =============
<PAGE>
Class B Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 1,882,421 $ 32,007,488
Shares issued to shareholders
in reinvestment of dividends 786 13,029
------------- -------------
Total issued 1,883,207 32,020,517
Automatic conversion of
shares (1,079,235) (18,075,199)
Shares redeemed (3,847,236) (64,409,340)
------------- -------------
Net decrease (3,043,264) $ (50,464,022)
============= =============
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)
============= =============
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 395,590 $ 6,702,711
Shares redeemed (366,433) (6,164,383)
------------- -------------
Net increase 29,157 $ 538,328
============= =============
<PAGE>
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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 1,953,059 $ 33,593,797
Automatic conversion
of shares 1,078,984 18,075,199
Shares issued to shareholders
in reinvestment of dividends 39,258 648,556
------------- -------------
Total issued 3,071,301 52,317,552
Shares redeemed (3,190,422) (54,565,976)
------------- -------------
Net decrease (119,121) $ (2,248,424)
============= =============
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 shareholders
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, 1996, the Trust had a net capital loss carryforward of
approximately $2,417,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable
gains.
6. Subsequent Event:
On September 5, 1996, the Board of Trustees declared dividends per
share payable on September 12, 1996 to shareholders of record as
of September 4, 1996 as follows:
Ordinary Income
Class A $.269936
Class B .058477
Class C .126665
Class D .225934
<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, 1996, 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,
1996 by correspondence with the custodian and broker. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Global Resources Trust as of July 31, 1996, 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
September 6, 1996
</AUDIT-REPORT>
