MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
STRATEGIC
Performance
Quarterly Report
October 31, 1997
<PAGE>
MERRILL LYNCH GLOBAL RESOURCES TRUST
DEAR SHAREHOLDER
The environment for investments in the natural resources sector was generally
negative for the three-month period ended October 31, 1997. Investor sentiment
initially was boosted by signs that both the US and UK economies were exhibiting
strong growth. In addition, there were signs that economic activity was
accelerating in Continental Europe and Latin America. However, this positive
sentiment was eroded by the financial turmoil and currency devaluations in the
Southeast Asian economies. Investors feared that this financial crisis would
lead to slower global economic growth rates and reduced purchasing power in the
region and would have strong negative implications for the demand outlook for
many basic materials.
Commodity prices were mixed during the October quarter. The prices of industrial
commodities, including base metals, steel and some paper products, were weak as
a result of concerns about global economic activity. Share prices of companies
in these sectors fell sharply as analysts downgraded earnings estimates because
of reduced volume and pricing expectations. Gold prices, which stabilized in
August and September in response to strong physical demand, fell sharply in
October after the announcement that the Swiss National Bank may sell up to half
of its gold reserves following a referendum in 1999. Share prices of gold mining
companies fell in sympathy with the gold price. Conversely, energy prices
remained relatively firm during the October quarter. Crude oil prices held
steady as concerns of an increase in the supply of crude oil resulting from the
resumption of Iraqi exports for humanitarian aid were offset by positive
industry fundamentals and increased tension in the Middle East. Natural gas
prices moved sharply higher in response to continued strong demand and low
inventory levels. Energy-related stocks were the only group in our investment
universe to post gains during the October quarter.
For the quarter ended October 31, 1997, total returns for the Trust's Class A,
Class B, Class C and Class D Shares were -8.11%, -8.35%, -8.32% and -8.12%,
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 large exposure to the energy sector, with particular emphasis on
exploration and production companies, contributed positively to returns during
the October quarter. Share prices of energy-related companies rose during the
three-month period as oil prices stabilized and natural gas prices moved sharply
higher. The Trust's holdings in oil service companies showed particular
strength, as investors remained confident that these companies would continue to
post strong earnings gains. Exploration and production companies also rose
sharply in response to stronger-than-expected oil and natural gas prices. Trust
returns also benefited from two takeover/ merger proposals in the exploration
and production sector. During the quarter, Louisiana Land and Exploration, a
Trust holding, rose sharply after the company agreed to merge with Burlington
Resources. Chauvco Resources, Ltd., also a Trust holding, moved higher in
response to a merger proposal from Pioneer Natural Resources Co. In addition,
the Trust's recent increased exposure to the refining and marketing sector
enhanced returns as share prices of these companies rose in response to
expanding refining margins and continued industry consolidation.
Trust returns were hurt by our significant exposure to the industrial side of
our investment universe. Share prices of companies in this area fell sharply in
response to concerns about the effect of currency turmoil in Southeast Asia on
the outlook for global economic growth and thus on the demand for basic
materials. Base metals shares were particularly weak as a result of the fact
that much of the growth in consumption of base metals over the past decade has
come from this region. Steel and chemical shares also
1
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
posted significant declines as forecasts of slower demand only added to
investors' concerns about new capacity additions over the next couple of years.
Currently, much of the weakness in demand for these basic materials from Asia is
being offset by better-than-expected demand in North America and Europe.
However, this will have to be monitored closely over the next few quarters to
see what effect the Asian currency crisis will have on global economic activity.
Investment Activity
We made several significant industry allocation changes in the Trust during the
October quarter. In response to our uncertainty about the near-term effects of
the currency crisis in Southeast Asia on world economic growth, we reduced our
exposure to the industrial side of our investment universe, including the base
metals, chemical, steel and paper sectors. This was accomplished through partial
sales of a number of companies and the elimination of our position in Alcan
Aluminium, Ltd. These four sectors combined accounted for about 34% of net
assets at the end of October as compared to about 42% of net assets at the end
of July.
We used the proceeds of these sales to increase our exposure to the energy
sector, which continued to benefit from positive industry supply/demand
fundamentals. We established two new positions in the exploration and production
area, including Baytex Energy Ltd., a Canadian-based company with strong
production and cash flow growth potential, and The Houston Exploration Co., a
US-based company with significant exposure and leverage to the US natural gas
market. We also increased our exposure to the oil service group with the
purchase of McDermott International, Inc., an attractively valued energy service
company with significant restructuring potential, and TransCoastal Marine
Services, Inc., a leading shallow water pipeline installation and testing
company. Energy-related industries now account for about 44% of net assets as
compared to only 35% of net assets at the end of July. Outside of the energy
sector, we initiated a position in Greenstone Resources Ltd., a Canadian-based
gold producer with significant low cost production growth potential at their
properties in Latin America.
In Conclusion
There continues to be much uncertainty in the financial markets about the
direction and rate of future economic activity. How the Asian financial crisis
is going to affect growth in the rest of the world remains unclear. This
uncertainty may put a damper on the near-term performance of economy-sensitive
natural resource stocks. Meanwhile, we will focus the Trust's investments on
companies that have strong organic growth prospects and/or companies that have
significant cost-cutting and rationalization opportunities and therefore are not
dependent on significantly higher commodity prices.
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 semi-annual report to shareholders.
Sincerely,
/s/ Arthur Zeikel
Arthur Zeikel
President
/s/ Peter A. Lehman
Peter A. Lehman
Vice President and Portfolio Manager
December 1, 1997
2
<PAGE>
Merrill Lynch Global Resources Trust October 31, 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:
o 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.
o 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.)
o 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.
o 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. Figures shown in the "Average Annual Total Return"
tables as well as the total returns and cumulative total returns 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 9/30/97 +17.16% +11.00%
-----------------------------------------------------------------------------
Five Years Ended 9/30/97 + 9.41 + 8.24
-----------------------------------------------------------------------------
Inception (10/24/88)
through 9/30/97 + 8.51 + 7.85
-----------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
=============================================================================
Class B Shares*
=============================================================================
Year Ended 9/30/97 +15.95% +11.95%
-----------------------------------------------------------------------------
Five Years Ended 9/30/97 + 8.30 + 8.30
-----------------------------------------------------------------------------
Ten Years Ended 9/30/97 + 3.01 + 3.01
-----------------------------------------------------------------------------
* 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 9/30/97 +15.97% +14.97%
-----------------------------------------------------------------------------
Inception (10/21/94)
through 9/30/97 + 9.14 + 9.14
-----------------------------------------------------------------------------
* 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 9/30/97 +16.87% +10.73%
-----------------------------------------------------------------------------
Inception (10/21/94)
through 9/30/97 +10.03 + 8.03
-----------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
3
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
PERFORMANCE DATA (continued)
Performance Summary -- Class A Shares
<TABLE>
<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 -- 10/31/97 18.53 16.70 1.623 0.097 - 1.31
- ------------------------------------------------------------------------------------------------
Total $2.686 Total $2.497
================================================================================================
Cumulative total return as of 10/31/97: + 84.83%**
================================================================================================
</TABLE>
* Figures may include short-term capital gains distributions.
** Figures do not include sales charge; results would be lower if sales charge
was included.
Performance Summary -- Class B Shares
<TABLE>
<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 -- 10/31/97 18.55 16.65 1.623 -- - 2.18
- -----------------------------------------------------------------------------------------------
Total $5.235 Total $1.471
===============================================================================================
Cumulative total return as of 10/31/97: +155.42%**
===============================================================================================
</TABLE>
* 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.
4
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
PERFORMANCE DATA (concluded)
Performance Summary -- Class C Shares
<TABLE>
<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 -- 10/31/97 18.39 16.51 1.623 -- - 2.09
- ------------------------------------------------------------------------------------------------
Total $1.812 Total $0.138
================================================================================================
Cumulative total return as of 10/31/97: + 15.19%**
================================================================================================
</TABLE>
* 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.
Performance Summary -- Class D Shares
<TABLE>
<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 -- 10/31/97 18.50 16.68 1.623 0.045 - 1.52
- ------------------------------------------------------------------------------------------------
Total $1.812 Total $0.430
================================================================================================
Cumulative total return as of 10/31/97: + 18.03%**
================================================================================================
</TABLE>
* Figures may include short-term capital gains distributions.
** Figures do not include sales charge; results would be lower if sales charge
was included.
Recent Performance Results*
<TABLE>
<CAPTION>
12 Month 3 Month
10/31/97 7/31/97 10/31/96 % Change % Change
=====================================================================================================================
<S> <C> <C> <C> <C> <C>
ML Global Resources Trust Class A Shares $16.70 $19.90 $18.08 +1.71%(1) -8.55%(2)
- ---------------------------------------------------------------------------------------------------------------------
ML Global Resources Trust Class B Shares 16.65 19.80 18.13 +1.14(1) -8.35(2)
- ---------------------------------------------------------------------------------------------------------------------
ML Global Resources Trust Class C Shares 16.51 19.64 17.98 +1.21(1) -8.32(2)
- ---------------------------------------------------------------------------------------------------------------------
ML Global Resources Trust Class D Shares 16.68 19.83 18.06 +1.71(1) -8.33(2)
- ---------------------------------------------------------------------------------------------------------------------
ML Global Resources Trust Class A Shares -- Total Return +2.21(3) -8.11(4)
- ---------------------------------------------------------------------------------------------------------------------
ML Global Resources Trust Class B Shares -- Total Return +1.14(1) -8.35(2)
- ---------------------------------------------------------------------------------------------------------------------
ML Global Resources Trust Class C Shares -- Total Return +1.21(1) -8.32(2)
- ---------------------------------------------------------------------------------------------------------------------
ML Global Resources Trust Class D Shares -- Total Return +1.94(5) -8.12(6)
=====================================================================================================================
</TABLE>
* 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 $1.812 per share capital gains
distributions.
(2) Percent change includes reinvestment of $1.623 per share capital gains
distributions.
(3) Percent change includes reinvestment of $0.097 per share ordinary income
dividends and $1.812 per share capital gains distributions.
(4) Percent change includes reinvestment of $0.097 per share ordinary income
dividends and $1.623 per share capital gains distributions.
(5) Percent change includes reinvestment of $0.045 per share ordinary income
dividends and $1.812 per share capital gains distributions.
(6) Percent change includes reinvestment of $0.045 per share ordinary income
dividends and $1.623 per share capital gains distributions.
5
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
=================================================================================================================================
<S> <C> <C> <C> <C> <C>
Aluminum 47,000 Alumax, Inc. $ 1,623,963 $ 1,527,500 0.9%
15,000 Aluminum Company of America 787,658 1,095,000 0.6
29,000 Pechiney, S.A. (A Shares) 1,154,457 1,193,200 0.7
------------- ------------- -----
3,566,078 3,815,700 2.2
=================================================================================================================================
Chemicals 14,000 Air Products and Chemicals, Inc. 630,826 1,064,000 0.6
26,400 BASF AG 633,146 897,855 0.5
11,000 Dow Chemical Co. 758,002 998,250 0.6
35,200 duPont (E.I.) de Nemours & Co. 1,209,065 2,002,000 1.2
------------- ------------- -----
3,231,039 4,962,105 2.9
=================================================================================================================================
Diamonds 80,000 Aber Resources Ltd. 1,310,472 945,553 0.6
120,000 SouthernEra Resources Ltd. 746,222 1,256,478 0.7
------------- ------------- -----
2,056,694 2,202,031 1.3
=================================================================================================================================
Diversified Companies 102,000 Asahi Glass Co., Ltd. 1,223,974 687,297 0.4
27,000 Ashland Inc. 1,144,672 1,287,563 0.8
26,500 Coastal Corp. 674,667 1,593,313 0.9
51,000 Cyprus Amax Minerals Co. 1,240,260 1,067,812 0.6
46,300 Norcen Energy Resources Ltd. 596,432 1,043,533 0.6
378,000 North Ltd. 1,419,525 993,616 0.6
273,000 RGC Ltd. 1,101,112 558,420 0.3
------------- ------------- -----
7,400,642 7,231,554 4.2
=================================================================================================================================
Gold 1,004,000 Acacia Resources Ltd. 1,744,821 1,005,247 0.6
188,600 Amax Gold, Inc. 1,114,318 931,212 0.5
94,500 Ashanti Goldfields Co. Ltd. (GDR)** 2,346,106 911,925 0.5
122,500 Cambior Inc. 1,625,848 956,556 0.6
122,000 Casmyn Corp. 1,122,818 594,750 0.3
1,063,900 Delta Gold N.L 1,905,895 900,187 0.5
163,200 Driefontein Consolidated Ltd. 2,534,252 1,165,472 0.7
34,000 Freeport-McMoRan Copper & Gold Inc. (Class B) 1,171,540 811,750 0.5
92,000 Getchell Gold Corp. 3,713,827 3,312,000 1.9
905,000 Great Central Mines N.L 2,600,570 1,052,891 0.6
50,000 Greenstone Resources Ltd. 490,332 408,178 0.2
373,800 Miramar Mining Corp. 1,900,432 1,061,404 0.6
74,222 Newmont Mining Corp. 2,736,348 2,597,770 1.5
920,000 Normandy Mining Ltd. 1,040,108 1,005,473 0.6
211,000 Placer Dome Inc. 4,483,800 3,270,500 1.9
131,500 Prime Resources Group, Inc. 1,286,428 877,476 0.5
1,097,000 Resolute Ltd. 2,284,526 891,066 0.5
122,000 Sutton Resources Ltd. 1,097,904 874,707 0.5
158,000 TVX Gold Inc. 1,272,815 671,500 0.4
553,331 William Resources Inc. 1,036,838 373,156 0.2
------------- ------------- -----
37,509,526 23,673,220 13.6
=================================================================================================================================
Integrated Oil 39,000 Amerada Hess Corp. 2,102,507 2,396,062 1.4
Companies -- Domestic 20,000 Amoco Corp. 1,118,700 1,833,750 1.0
------------- ------------- -----
3,221,207 4,229,812 2.4
=================================================================================================================================
</TABLE>
6
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
=================================================================================================================================
<S> <C> <C> <C> <C> <C>
Integrated Oil 384,000 British Petroleum Co., PLC $ 1,554,500 $ 5,643,178 3.2%
Companies -- International 61,300 Ente Nazionale Idrocarburi S.p.A. (ENI) (ADR)* 2,865,775 3,455,787 2.0
8,800 OMV AG 933,582 1,253,509 0.7
149,800 Petro-Canada 1,635,043 3,042,812 1.8
43,100 Societe Nationale Elf Aquitaine (ADR)* 1,586,637 2,661,425 1.5
37,000 Total, S.A. (Class B) 2,275,324 4,107,546 2.4
47,000 Yacimientos Petroliferos Fiscales S.A. (YPF) (ADR 1,152,205 1,504,000 0.9
------------- ------------- -----
12,003,066 21,668,257 12.5
=================================================================================================================================
Metals & Mining 31,100 ASARCO Inc. 923,026 851,362 0.5
1,558,000 Centaur Mining & Exploration Ltd. 2,347,920 768,982 0.4
82,100 Falconbridge Ltd. 1,822,697 1,253,035 0.7
38,800 Inco Ltd. 1,284,094 800,250 0.5
316,800 Industrias Penoles, S.A. de C.V 1,391,890 1,255,495 0.7
2,470,000 M.I.M. Holdings Ltd. 5,396,407 2,176,996 1.3
184,159 Minsur S.A 597,621 496,991 0.3
391,000 Mitsubishi Materials Corp. 1,955,466 1,105,898 0.6
73,400 Noranda Inc. 1,355,782 1,292,198 0.7
79,300 Outokumpu OYJ 1,460,162 1,182,207 0.7
53,100 P.T. Tambag Timah (GDR)** 661,263 637,200 0.4
269,500 Pasminco Ltd. 425,920 334,443 0.2
14,300 Phelps Dodge Corp. 834,065 1,063,562 0.6
615,000 QNI Ltd. 1,099,212 542,046 0.3
32,000 Rio Algom Ltd. 619,108 606,517 0.3
186,100 Rio Tinto PLC (The) 2,441,443 2,397,706 1.4
1,717,000 Savage Resources Ltd. 1,306,929 992,738 0.6
222,000 Savage Resources Ltd. (Warrants) (a) 29,591 12,523 0.0
220,000 Sumitomo Metal Mining Co. Ltd. 1,830,947 1,110,889 0.6
62,000 Trelleborg 'B' Fria 842,932 820,402 0.5
643,400 WMC Ltd. 3,807,237 2,290,990 1.3
233,000 Westmin Resources, Inc. 1,221,705 827,004 0.5
------------- ------------- -----
33,655,417 22,819,434 13.1
=================================================================================================================================
Oil & Gas Producers 84,000 Apache Corp. 2,237,728 3,528,000 2.0
63,600 Baytex Energy Ltd. 896,611 857,812 0.5
71,000 Benton Oil & Gas Co. 1,082,750 1,428,875 0.8
21,198 Burlington Resources, Inc.+ 526,291 1,037,353 0.6
132,000 Chauvco Resources, Ltd. 1,440,033 2,857,954 1.6
54,900 Chieftain International Inc. 1,232,560 1,345,050 0.8
183,200 Enserch Exploration Inc. 1,779,675 1,648,800 1.0
180,400 Enterprise Oil PLC 1,216,220 2,015,576 1.2
388,400 Gulf Canada Resources Ltd. 2,908,508 3,252,850 1.9
33,000 Houston Exploration Co. (The) 755,287 800,250 0.5
71,600 Mitchell Energy & Development Corp. (Class B) 1,388,741 1,790,000 1.0
124,500 Northrock Resources Ltd. 1,001,587 2,121,105 1.2
78,500 Oryx Energy Co. 1,315,405 2,163,656 1.2
41,000 Pancanadian Petroleum Ltd. 777,815 660,680 0.4
301,000 Ranger Oil Ltd. 1,992,730 2,596,125 1.5
61,300 Sonat, Inc. 2,354,420 2,815,969 1.6
------------- ------------- -----
22,906,361 30,920,055 17.8
=================================================================================================================================
</TABLE>
7
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
SCHEDULE OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
Percent of
Industries Shares Held Common Stocks Cost Value Net Assets
=================================================================================================================================
<S> <C> <C> <C> <C> <C>
Oil Services 49,200 Coflexip Stena Offshore, Inc. (ADR)* $ 1,040,458 $ 2,656,800 1.5%
42,000 McDermott International, Inc. 1,586,597 1,525,125 0.9
39,600 Petroleum Geo-Services ASA (ADR)* 1,157,072 2,742,300 1.6
25,000 Schlumberger Ltd. 715,668 2,187,500 1.3
44,400 Smedvig ASA (ADR)* 943,500 1,282,050 0.7
65,300 TransCoastal Marine Services, Inc. 1,242,435 1,583,525 0.9
46,800 Transocean Offshore Inc. 1,458,113 2,527,200 1.5
------------- ------------- -----
8,143,843 14,504,500 8.4
=================================================================================================================================
Paper & Pulp 45,666 Aracruz Celulose S.A. (ADR)* 365,755 684,990 0.4
171,200 Avenor Inc. 3,259,604 2,807,354 1.6
23,000 Champion International Corp. 1,196,585 1,269,312 0.7
48,700 Empresa Nacional de Celulosas S.A. (ENCE) 705,111 725,890 0.4
22,000 Fort James Corp. 663,725 873,125 0.5
15,900 Georgia-Pacific Corp. 976,504 1,348,519 0.8
24,400 International Paper Co. 929,082 1,098,000 0.6
151,300 Metsa Serla OY 'B' 1,221,295 1,332,846 0.8
37,500 Mo Och Domsjo AB Co. 923,972 1,017,483 0.6
261,496 Slocan Forest Products Ltd. 2,342,662 1,911,982 1.1
63,500 Stone Container Corp. 785,423 765,969 0.5
48,000 Weyerhaeuser Co. 2,029,450 2,292,000 1.3
48,000 Willamette Industries, Inc. 901,333 1,587,000 0.9
------------- ------------- -----
16,300,501 17,714,470 10.2
=================================================================================================================================
Petroleum Refining 71,000 Sun Company, Inc. 1,912,425 2,844,437 1.6
29,300 Ultramar Diamond Shamrock Corp. 698,163 904,637 0.6
------------- ------------- -----
2,610,588 3,749,074 2.2
=================================================================================================================================
Plantations 717,000 Golden Hope Plantations BHD 1,325,785 934,565 0.5
578,000 Kuala Lumpur Kepong BHD 790,865 1,382,362 0.8
------------- ------------- -----
2,116,650 2,316,927 1.3
=================================================================================================================================
Steel 566,000 British Steel PLC 1,492,794 1,500,244 0.8
25,200 Koninklijke Nederlandsche Hoogovens en
Staalfabrienken N.V. 1,107,517 1,155,963 0.7
671,000 Nippon Steel Corp. 2,290,933 1,384,311 0.8
870,000 Sumitomo Metal Industries, Ltd. 2,743,470 1,744,198 1.0
------------- ------------- -----
7,634,714 5,784,716 3.3
=================================================================================================================================
Wood Products 61,500 Louisiana-Pacific Corp. 1,956,796 1,291,500 0.8
146,100 Riverside Forest Products Ltd. 2,401,223 1,451,977 0.8
------------- ------------- -----
4,358,019 2,743,477 1.6
=================================================================================================================================
Total Common Stocks 166,714,345 168,335,332 97.0
=================================================================================================================================
</TABLE>
8
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
SCHEDULE OF INVESTMENTS (concluded)
<TABLE>
<CAPTION>
Face Percent of
Amount Short-Term Securities Cost Value Net Assets
=================================================================================================================================
<S> <C> <C> <C> <C> <C>
Repurchase $ 6,367,000 UBS Securities, purchased on 10/31/97 to
Agreements*** yield 5.69% to 11/03/97 $ 6,367,000 $ 6,367,000 3.7%
=================================================================================================================================
Total Short-Term Securities 6,367,000 6,367,000 3.7
=================================================================================================================================
Total Investments $ 173,081,345 174,702,332 100.7
=============
Liabilities in Excess of Other Assets (1,271,695) (0.7)
------------- -----
Net Assets $ 173,430,637 100.0%
============= =====
=================================================================================================================================
Net Asset Class A -- Based on net assets of $15,098,216 and 904,063 shares
Value: of beneficial interest outstanding $ 16.70
=============
Class B -- Based on net assets of $62,855,900 and 3,774,223 shares
of beneficial interest outstanding $ 16.65
=============
Class C -- Based on net assets of $2,618,398 and 158,637 shares
of beneficial interest outstanding $ 16.51
=============
Class D -- Based on net assets of $92,858,123 and 5,567,454 shares
of beneficial interest outstanding $ 16.68
=============
=================================================================================================================================
</TABLE>
* American Depositary Receipts (ADR).
** Global Depositary Receipts (GDR).
*** Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
+ During the October quarter, Louisiana Land and Exploration Co. merged with
Burlington Resources, Inc.
(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.
9
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
PORTFOLIO INFORMATION
For the Quarter Ended October 31, 1997
Percent of
Ten Largest Equity Holdings Net Assets
British Petroleum Co., PLC............... 3.2%
Total, S.A. (Class B).................... 2.4
Apache Corp.............................. 2.0
Ente Nazionale Idrocarburi S.p.A.
(ENI) (ADR)........................... 2.0
Getchell Gold Corp....................... 1.9
Placer Dome Inc.......................... 1.9
Gulf Canada Resources Ltd................ 1.9
Petro-Canada............................. 1.8
Chauvco Resources, Ltd................... 1.6
Sun Company, Inc......................... 1.6
Additions
Baytex Energy Ltd.
Fort James Corp.
Greenstone Resources Ltd.
Houston Exploration Co. (The)
McDermott International, Inc.
Transcoastal Marine Services, Inc.
Ultramar Diamond Shamrock Corp.
Deletions
Alcan Aluminium, Ltd.
James River Corp.
Total Petroleum (North America), Ltd.
10
<PAGE>
Merrill Lynch Global Resources Trust October 31, 1997
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
Peter A. Lehman, Vice President and
Portfolio Manager
Gerald M. Richard, Treasurer
Thomas D. Jones, III, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, NY 10286
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
11
<PAGE>
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 #10303 -- 10/97
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