MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
FUND LOGO
Quarterly Report
April 30, 1997
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.
<PAGE>
Merrill Lynch
Global Resources Trust
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH GLOBAL RESOURCES TRUST
DEAR SHAREHOLDER
The environment for investments in the natural resources industries
was mixed for the three-month period ended April 30, 1997. Investor
sentiment for the resource sector was initially boosted by
surprisingly strong growth in the US economy. Preliminary estimates
show US first quarter 1997 gross domestic product grew at a robust
5.6%. While economic growth in the rest of the industrialized
nations was less robust, investors remained hopeful that monetary
policy would support an acceleration of economic activity in these
markets. This environment of moderate global economic growth and
modest inflation pressures encouraged expectations of an extended
economic cycle, which would be positive for the demand outlook for
many basic materials.
<PAGE>
In response, industrial commodity prices generally trended higher,
and the share prices of base metals, paper and chemical companies
posted solid gains. However, this positive sentiment cooled somewhat
in March and April, as rising US interest rates led investors to
question the sustainability of economic growth rates. Shares of base
metals, paper and chemical stocks partially retraced some of their
earlier gains, as these economically sensitive groups suffered from
expectations of a slowdown in economic activity. Gold shares fell
throughout the April quarter as reduced inflationary expectations
led to further declines in the gold price. Gold shares also suffered
from the negative investor sentiment surrounding Bre-X Minerals
Ltd., a Canadian-based gold exploration company, which disclosed in
late March that the amount of gold at its Busang property in
Indonesia might have been overstated. Subsequent testing on this
property showed it to be uneconomically feasible to develop. Energy-
related stocks generally declined over the quarter as both oil and
natural gas prices fell sharply in response to rising inventory
levels. Share prices of exploration and production companies, as
well as oil service companies were particularly weak.
For the quarter ended April 30, 1997, total returns for the Trust's
Class A, Class B, Class C, and Class D Shares were -2.68%, -2.89%,
- -2.86%, and -2.68%, 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--5 of this report to shareholders.)
The Trust's exposure to the paper and forest products sector
contributed positively to returns during the quarter ended April 30,
1997. Share prices of companies in this area underperformed our
investment universe for the past two years as commodity prices fell
significantly from their highs in 1995. Currently, there are some
indications that commodity prices may be bottoming. There were
several attempts by the industry to implement price increases over
the last six months, but these generally failed. The companies are
finally responding by announcing production downtime for many paper
grades in an attempt to strengthen supply/demand balances. In
addition, recent poor pricing is expected to keep capacity additions
limited for most paper grades over the next few years. This should
allow industry fundamentals to improve as operating rates gradually
move higher, thereby giving the industry greater pricing flexibility
in the future. There was also an increasing trend toward
consolidation in the group which should help support a positive turn
in industry prospects. In addition, there are signs that company
managements are adopting more shareholder-oriented policies,
including share repurchases, debt reduction and an increased focus
on the returns from all capital expenditures.
<PAGE>
Trust returns also benefited from our significant exposure to the
base metals sector. Shares prices of companies in this group rose in
response to an improved industry outlook. An acceleration in
economic activity boosted the demand for these materials which, in
turn, led to declining inventory levels for most base metals,
particularly aluminum, copper and zinc. Commodity prices of most
base metals rallied in response to this strengthening of industry
supply/demand fundamentals. We expect that inventory levels will
continue to trend downward over the next 12 months--18 months since
demand should remain strong and limited new supply will come on
line. This should support a favorable pricing environment for most
base metals and could lead to an improved earnings outlook for many
producing companies.
Trust returns were hurt by our exposure to gold-mining stocks. Gold
shares fell as gold prices suffered from investor concerns about
possible increases in the supply of gold to the marketplace and
continued low inflation expectations. While we believe that the
supply/demand fundamentals in the gold market remain tight, we do
not expect gold prices to move substantially higher in the near
term. Gold shares also suffered from the negative sentiment
surrounding Bre-X Minerals Ltd. While the Trust did not hold any
shares in Bre-X Minerals Ltd., the share prices of most gold-mining
companies suffered as investors lowered the overall valuations they
were willing to put on the reserves and resources of gold mining
companies. In the Trust, investments in the gold sector remain
focused on low-cost producers with strong production and reserve
growth potentials.
In the energy area, Trust returns suffered from our significant
exposure to exploration and production companies. Share prices of
exploration and production stocks declined as both oil and natural
gas prices fell sharply from their highs in January. Energy prices
moved higher during the last quarter of 1996, as we moved into the
winter heating season with low inventories of both heating oil and
natural gas. However, a warmer-than-normal winter helped alleviate
these inventory pressures and contributed to the recent price
declines. We do not expect oil and natural gas prices to move
significantly higher or lower in the near term, as supply/demand
fundamentals are reasonably in balance. Investments in the
exploration and production sector remain concentrated in companies
with attractive relative valuations and strong production and
reserves growth potentials.
Investment Activity
During the quarter ended April 30, 1997, there were no significant
geographic or industry allocation changes made in the Trust. The
Trust's primary investment focus remained in the energy sector,
followed by a significant exposure to the base metals sector. In the
energy area, we used the strength in the sector early in the quarter
as an opportunity to realize profits in several of our exploration
and production company holdings. This included the elimination of
our positions in Premier Oil Co. PLC and Vastar Resources, Inc., as
well as partial sales of positions in many other companies.
<PAGE>
We increased our exposure and established a new position in two oil
refining companies, Sun Company, Inc. and Ashland Oil Inc.,
respectively. We expect these companies to benefit from improved
refining and marketing margins as well as the continued
consolidation occurring in this industry. Both of these companies
also have significant financial and corporate restructuring
potentials. Outside the energy area, we used the weakness in the
gold sector as an opportunity to increase our exposure to some
attractively valued intermediate gold producers. New positions
established during the April quarter included Getchell Gold Corp., a
US-based gold producer with a strong reserve base in Nevada, and
William Resources Inc., a Canadian-based gold producer with
significant reserves growth potentials in Latin America, Australia
and Scandinavia.
In Conclusion
Looking ahead, we continue to be optimistic about the outlook for
the natural resource sector. There continues to be uncertainty over
the sustainability of recent advances in economic growth, and much
debate over the implications of this growth for the financial
markets. We remain encouraged by recent positive economic trends and
believe we may be moving toward a period of synchronized growth in
both the industrialized and developing economies. We expect this to
keep the demand for most basic commodities on an upward trend and
strengthen fundamental supply/demand prospects for most natural
resource-related industries which, in turn, should have positive
implications for the earnings of many resource-related companies. We
remain positive on the intermediate-term prospects for the natural
resource sector and remain fully invested, with cash levels in the
Trust at 2.5% of net assets.
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 upcoming annual report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Peter A. Lehman)
Peter A. Lehman
Vice President and Portfolio Manager
May 21, 1997
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 approximately 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).
<PAGE>
None of the past results shown should be considered a representation
of future performance. Figures shown in the "Average Annual Total
Return" tables as well as the total returns and cumulative total re-
turns in the "Performance Summary" tables assume reinvestment of all
dividends and capital gains distributions at net asset value on the
ex-dividend date. 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.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/97 +5.52% -0.02%
Five Years Ended 3/31/97 +8.26 +7.10
Inception (10/24/88)
through 3/31/97 +7.63 +6.94
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/97 +4.39% +0.39%
Five Years Ended 3/31/97 +7.14 +7.14
Ten Years Ended 3/31/97 +4.10 +4.11
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/97 +4.36% +3.36%
Inception (10/21/94)
through 3/31/97 +6.43 +6.43
<PAGE>
[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 3/31/97 +5.27% -0.26%
Inception (10/21/94)
through 3/31/97 +7.34 +4.99
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
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
1996 16.51 18.53 0.189 0.230 +14.88
1/1/97--4/30/97 18.53 18.18 -- -- - 1.89
------ ------
Total $1.063 Total $2.400
Cumulative total return as of 4/30/97: +83.75%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures 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
1995 15.16 16.51 -- 0.002 + 8.92
1996 16.51 18.55 0.189 0.018 +13.65
1/1/97--4/30/97 18.55 18.14 -- -- - 2.21
------ ------
Total $3.612 Total $1.471
Cumulative total return as of 4/30/97: +155.34%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures 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 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
1996 16.44 18.39 $0.189 0.086 +13.60
1/1/97--4/30/97 18.39 17.98 -- -- - 2.23
------ ------
Total $0.189 Total $0.138
Cumulative total return as of 4/30/97: +15.02%**
<PAGE>
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not reflect deduction of any sales charge; results
would be lower if sales charge was deducted.
</TABLE>
<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
1996 16.49 18.50 $0.189 0.186 +14.56
1/1/97--4/30/97 18.50 18.14 -- -- - 1.95
------ ------
Total $0.189 Total $0.385
Cumulative total return as of 4/30/97: +17.51%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures do not include sales charge; results would be lower if
sales charge was included.
</TABLE>
<TABLE>
Recent Performance Results*
<CAPTION>
12 Month 3 Month
4/30/97 1/31/97 4/30/96 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Resources Trust Class A Shares $18.18 $18.68 $18.60 -1.23%(1) -2.68%
ML Global Resources Trust Class B Shares 18.14 18.68 18.53 -1.08(1) -2.89
ML Global Resources Trust Class C Shares 17.98 18.51 18.45 -1.52(1) -2.86
ML Global Resources Trust Class D Shares 18.14 18.64 18.55 -1.18(1) -2.68
ML Global Resources Trust Class A Shares--Total Return +0.05(2) -2.68
ML Global Resources Trust Class B Shares--Total Return -0.98(3) -2.89
ML Global Resources Trust Class C Shares--Total Return -1.03(4) -2.86
ML Global Resources Trust Class D Shares--Total Return -0.14(5) -2.68
<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 $0.189 per share capital
gains distributions.
(2)Percent change includes reinvestment of $0.230 per share ordinary
income dividend and $0.189 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.018 per share ordinary
income dividend and $0.189 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.086 per share ordinary
income dividend and $0.189 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.186 per share ordinary
income dividend and $0.189 per share capital gains distributions.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Aluminum 63,000 Alcan Aluminium, Ltd. $ 1,644,252 $ 2,134,125 1.0%
40,000 Alumax, Inc. 1,317,446 1,460,000 0.7
17,000 Aluminum Company of America 891,028 1,187,875 0.6
------------ ------------ ------
3,852,726 4,782,000 2.3
Chemicals 16,000 Air Products and Chemicals, Inc. 720,944 1,148,000 0.6
43,000 BASF AG 1,032,477 1,658,621 0.8
17,000 Dow Chemical Co. (The) 1,171,458 1,442,875 0.7
21,600 duPont (E.I.) de Nemours & Co. 1,427,401 2,292,300 1.1
------------ ------------ ------
4,352,280 6,541,796 3.2
Diamonds 80,000 Aber Resources Ltd. 1,310,472 1,265,388 0.6
102,700 SouthernEra Resources Ltd. 621,635 683,589 0.3
------------ ------------ ------
1,932,107 1,948,977 0.9
Diversified Companies 102,000 Asahi Glass Co., Ltd. 1,223,974 924,568 0.5
21,000 Ashland Oil Inc. 861,562 937,125 0.5
26,500 Coastal Corp. 674,667 1,258,750 0.6
105,000 Cyprus Amax Minerals Co. 2,591,425 2,349,375 1.1
34,000 Freeport-McMoRan Copper & Gold, Inc.
(Class B) 1,171,540 990,250 0.5
60,000 Norcen Energy Resources Ltd. 772,914 1,202,405 0.6
40,000 Occidental Petroleum Corp. 779,160 885,000 0.4
273,000 RGC Ltd. 1,101,112 992,075 0.5
------------ ------------ ------
9,176,354 9,539,548 4.7
<PAGE>
Gold 699,000 Acacia Resources Ltd. 1,413,299 1,043,373 0.5
188,600 Amax Gold, Inc. 1,114,318 1,060,875 0.5
94,500 Ashanti Goldfields Co. Ltd. (GDR)** 2,346,106 1,138,725 0.6
122,500 Cambior Inc. 1,625,848 1,472,946 0.7
122,000 Casmyn Corp. 1,122,818 884,500 0.4
903,900 Delta Gold N.L. 1,698,537 1,532,883 0.8
163,200 Driefontein Consolidated Ltd. 2,534,252 1,367,803 0.7
51,600 Getchell Gold Corp. 2,312,887 1,980,150 1.0
825,000 Great Central Mines N.L. 2,473,842 1,587,344 0.7
373,800 Miramar Mining Corp. 1,900,432 1,324,299 0.6
291,100 Newcrest Mining Ltd. 1,244,156 866,755 0.4
98,622 Newmont Mining Corp. 3,800,767 3,414,787 1.7
195,000 Placer Dome Inc. 4,363,154 3,193,125 1.6
131,500 Prime Resources Group, Inc. 1,286,428 1,016,461 0.5
860,000 Resolute Ltd. 1,813,513 1,579,412 0.8
70,000 Sutton Resources Ltd. 638,563 626,252 0.3
158,000 TVX Gold Inc. 1,272,815 888,750 0.4
------------ ------------ ------
32,961,735 24,978,440 12.2
Integrated Oil 39,000 Amerada Hess Corp. 2,102,507 1,896,375 0.9
Companies--Domestic 23,000 Amoco Corp. 1,286,505 1,923,375 1.0
------------ ------------ ------
3,389,012 3,819,750 1.9
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Integrated Oil 419,000 British Petroleum Co., PLC $ 1,696,187 $ 4,817,628 2.4%
Companies-- 61,300 Ente Nazionale Idrocarburi S.p.A
International (ENI) (ADR)* 2,865,775 3,126,300 1.5
8,800 OMV AG 933,582 960,131 0.5
149,800 Petro-Canada 1,635,043 2,452,975 1.2
56,100 Repsol, S.A. 1,626,686 2,354,948 1.1
46,100 Societe Nationale Elf Aquitaine (ADR)* 1,691,817 2,241,613 1.1
49,100 Total, S.A. (Class B) 3,027,154 4,071,687 2.0
75,000 Yacimientos Petroliferos Fiscales S.A.
(ADR)* 1,831,426 2,071,875 1.0
------------ ------------ ------
15,307,670 22,097,157 10.8
<PAGE>
Metals & Mining 56,900 ASARCO Inc. 1,644,835 1,621,650 0.8
1,558,000 Centaur Mining & Exploration Ltd. 2,347,920 2,069,881 1.0
106,100 Falconbridge Ltd. 2,349,146 2,202,190 1.1
38,800 Inco Ltd. 1,284,094 1,241,600 0.6
316,800 Industrias Penoles, S.A. de C.V. 1,391,890 1,482,945 0.7
2,470,000 M.I.M. Holdings Ltd. 5,396,407 3,223,609 1.6
184,159 Minsur S.A. 597,621 758,342 0.4
446,000 Mitsubishi Materials Corp. 2,245,661 1,666,304 0.8
99,400 Noranda Inc. 1,869,535 2,098,697 1.0
120,000 Outokumpu OY 2,192,723 2,296,507 1.1
53,100 P.T. Tambag Timah (GDR)** 661,263 876,150 0.4
754,500 Pasminco Ltd. 1,010,576 1,438,726 0.7
27,200 Phelps Dodge Corp. 1,586,473 2,087,600 1.0
615,000 QNI Ltd. 1,235,188 1,143,882 0.6
221,100 RTZ Corp. PLC (The) 2,882,679 3,518,851 1.7
32,000 Rio Algom Ltd. 619,108 813,055 0.4
1,627,000 Savage Resources Ltd. 1,224,204 1,589,376 0.8
222,000 Savage Resources Ltd. (Warrants)(a) 29,591 48,578 0.0
275,000 Sumitomo Metal Mining Co. Ltd. 2,291,588 1,842,437 0.9
121,000 Trelleborg 'B' Fria 1,642,175 1,890,263 0.9
703,400 WMC Ltd. 4,171,867 4,177,774 2.1
233,000 Westmin Resources Ltd. 1,221,705 1,075,616 0.5
652,300 William Resources Inc. 659,855 592,915 0.3
------------ ------------ ------
40,556,104 39,756,948 19.4
Oil & Gas Producers 92,000 Apache Corp. 2,453,418 3,128,000 1.5
76,000 Benton Oil & Gas Co. 1,159,000 1,111,500 0.6
260,000 Chauvco Resources, Ltd. 3,011,394 3,591,469 1.8
53,500 Chieftain International Inc. 1,193,792 1,070,000 0.5
183,200 Enserch Exploration Inc. 1,779,675 1,625,900 0.8
205,400 Enterprise Oil PLC 1,384,374 2,028,103 1.0
388,400 Gulf Canada Resources Ltd. 2,908,508 3,155,750 1.6
38,300 Louisiana Land and Exploration
Co. (The) 1,566,743 1,915,000 0.9
111,600 Mitchell Energy & Development Corp.
(Class B) 2,267,579 2,134,350 1.0
134,500 Northrock Resources Ltd. 1,078,782 1,501,718 0.7
95,000 Oryx Energy Co. 1,588,361 1,900,000 0.9
20,500 Pancanadian Petroleum Ltd. 777,815 825,311 0.4
333,000 Ranger Oil Ltd. 2,214,330 3,330,000 1.6
53,100 Sonat Inc. 1,898,978 3,033,337 1.5
------------ ------------ ------
25,282,749 30,350,438 14.8
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Oil Services 66,200 Coflexip Stena Offshore, Inc. (ADR)* $ 1,405,958 $ 1,779,125 0.9%
20,600 IHC Caland N.V. 429,084 1,017,049 0.5
39,600 Petroleum Geo-Services ASA (ADR)* 1,157,072 1,524,600 0.7
18,000 Schlumberger Ltd. 1,030,561 1,993,500 1.0
53,400 Smedvig ASA (ADR)* 1,134,750 1,248,225 0.6
37,500 Transocean Offshore Drilling Inc. 2,296,948 2,273,437 1.1
------------ ------------ ------
7,454,373 9,835,936 4.8
<PAGE>
Paper 43,500 Stone Container Corp. 584,423 440,437 0.2
Paper & Pulp 61,066 Aracruz Celulose S.A. (ADR)* 489,264 1,152,621 0.6
174,000 Avenor Inc. 3,333,459 3,144,503 1.5
85,000 Empresa Nacional de Celulosas
S.A. (ENCE) 1,253,909 1,417,346 0.7
40,900 Georgia-Pacific Corp. 2,594,015 3,190,200 1.6
31,400 International Paper Co. 1,181,729 1,326,650 0.6
35,000 James River Corp. 1,083,508 1,045,625 0.5
341,400 Metsa Serla OY 'B' 2,940,292 2,560,894 1.2
53,500 Mo Och Domsjo AB Co. 1,287,297 1,599,917 0.8
326,496 Slocan Forest Products Ltd. 2,870,774 3,084,560 1.5
70,000 Weyerhaeuser Co. 2,968,850 3,202,500 1.6
31,000 Willamette Industries, Inc. 1,165,375 1,976,250 1.0
------------ ------------ ------
21,168,472 23,701,066 11.6
Petroleum Refining 83,000 Sun Company, Inc. 2,213,707 2,272,125 1.1
250,000 Total Petroleum (North America), Ltd. 3,028,198 2,500,000 1.2
------------ ------------ ------
5,241,905 4,772,125 2.3
Plantations 717,000 Golden Hope Plantations BHD 1,325,785 1,136,916 0.6
578,000 Kuala Lumpur Kepong BHD 790,865 1,496,813 0.7
------------ ------------ ------
2,116,650 2,633,729 1.3
Steel 472,000 British Steel PLC 1,240,738 1,088,470 0.5
553,000 Kobe Steel Ltd. 1,612,841 1,006,881 0.5
46,000 Koninklijke Nederlandsche
Hoogovens en Staalfabrienken N.V. 2,010,691 2,101,103 1.0
769,000 Nippon Steel Corp. 2,618,321 2,194,199 1.1
1,262,000 Sumitomo Metal Industries, Ltd. 4,094,148 3,143,312 1.5
------------ ------------ ------
11,576,739 9,533,965 4.6
Wood Products 92,500 Louisiana-Pacific Corp. 2,943,595 1,722,812 0.9
114,600 Pacific Forest Products Ltd. 1,266,412 1,886,487 0.9
146,100 Riverside Forest Products Ltd. 2,401,223 1,631,234 0.8
------------ ------------ ------
6,611,230 5,240,533 2.6
Total Common Stocks 191,564,529 199,972,845 97.6
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Percent of
Face Amount Short-Term Securities Cost Value Net Assets
<S> <C> <S> <C> <C> <C>
Repurchase $ 5,099,000 H.S.B.C. Securities, purchased on
Agreements*** 4/30/1997 to yield 5.37% to 5/01/1997 $ 5,099,000 $ 5,099,000 2.5%
Total Short-Term Securities 5,099,000 5,099,000 2.5
Total Investments $196,663,529 205,071,845 100.1
============
Liabilities in Excess of Other Assets (187,869) (0.1)
------------ ------
Net Assets $204,883,976 100.0%
============ ======
Net Asset Class A--Based on net assets of $19,324,594 and
Value: 1,062,768 shares of beneficial interest
outstanding $ 18.18
============
Class B--Based on net assets of $78,957,576 and
4,352,328 shares of beneficial interest
outstanding $ 18.14
============
Class C--Based on net assets of $2,636,475 and
146,660 shares of beneficial interest
outstanding $ 17.98
============
Class D--Based on net assets of $103,965,331 and
5,732,047 shares of beneficial interest
outstanding $ 18.14
============
<FN>
*American Depositary Receipts (ADR).
**Global Depositary Receipts (GDR).
***Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
(a)Warrants entitle the Trust to purchase a predetermined number of
shares of common stock. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration
date.
</TABLE>
PORTFOLIO INFORMATION
<PAGE>
For the Quarter Ended April 30, 1997
Percent of
Ten Largest Equity Holdings Net Assets
British Petroleum Co., PLC 2.4%
WMC Ltd. 2.1
Total, S.A. (Class B) 2.0
Chauvco Resources, Ltd. 1.8
RTZ Corp. PLC (The) 1.7
Newmont Mining Corp. 1.7
Ranger Oil Ltd. 1.6
M.I.M. Holdings Ltd. 1.6
Weyerhaeuser Co. 1.6
Placer Dome Inc. 1.6
Additions
Ashland Oil Inc.
Benton Oil & Gas Co.
Casmyn Corp.
Freeport-McMoRan Copper & Gold, Inc. (Class B)
Getchell Gold Corp.
James River Corp.
SouthernEra Resources Ltd.
Stone Container Corp.
Sutton Resources Ltd.
William Resources Inc.
Deletions
Canadian Pacific, Ltd.
Premier Oil Co. PLC
Santa Fe Pacific Gold Corp.
Vastar Resources, Inc.
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
<PAGE>
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
