MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
FUND LOGO
Semi-Annual Report
January 31, 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 sector was
positive during the three-month period ended January 31, 1997.
Resource-related stocks posted moderate gains overall which were
essentially in line with the returns of the broad stock market
averages. There continued to be much uncertainty about the direction
and rate of future worldwide economic growth. However, investor
sentiment was boosted by signs that the US economy was exhibiting
strong positive momentum. Revised data released in the US show
fourth-quarter 1996 gross domestic product growth at a robust 3.9%.
In addition, economic activity generally remained buoyant in the
emerging market economies in Asia and Latin America. While growth in
the Japanese and continental European economies generally has been
below expectations, investors remained hopeful that monetary policy
would support an improving trend in economic activity in these
markets. This environment of moderate global economic growth and low
inflation pressures encouraged expectations of an extended economic
cycle. In response, commodity prices generally moved higher over the
quarter as supply/demand fundamentals in most commodity areas
strengthened. Oil and natural gas prices soared; base metal prices,
led by copper, recovered sharply from their losses during the
summer; and, lumber prices remained in a firm uptrend. There were
also some price increases announced by companies in the steel and
paper products areas, but it is still uncertain if these will be
accepted. Conversely, gold prices moved lower on concerns about
possible increases in the supply of gold to the marketplace.
<PAGE>
For the quarter ended January 31, 1997, total returns for the
Trust's Class A, Class B, Class C and Class D Shares were +4.40%,
+4.12%, +4.04% and +4.30%, 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 quarter. Share prices of energy-
related companies rose during the January quarter as stronger-than-
expected oil and natural gas prices led to earnings upgrades. The
Trust's holdings in Canadian and European energy companies showed
particular strength after having lagged the strong returns of US
energy companies for much of 1996. Oil prices continued to rise
despite the resumption of oil exports from Iraq to fund humanitarian
aid. Strong industry fundamentals, including robust demand and low
inventories of crude oil and oil products, allowed this additional
crude oil to be absorbed by the market with little effect on oil
prices thus far. Natural gas prices were more volatile during the
quarter but also remained well supported by strong demand and
historically low inventory levels. While industry fundamentals
remain positive, we do expect both oil and natural gas prices to
retreat somewhat from their highs as we move out of the peak winter
demand season throughout much of the consuming world.
Trust returns also benefited from our significant exposure to the
base metals sector. Share prices of companies in this group moved
higher in response to a continued tightening of industry
supply/demand fundamentals. Demand for most base metals remained on
a strong upward trend, driven primarily by strong economic growth in
the United States and in the developing markets of Asia. This
allowed inventory levels for most base metals to continue their
decline on the major commodity exchanges. While not yet at
critically low inventory levels, where prices historically have
spiked higher, most forecasters of supply/demand expect inventories
to continue their downward trend over the next few years. Base metal
prices rallied sharply from their lows during the summer of 1996 in
response to this improved industry outlook.
<PAGE>
Trust returns were hurt by our exposure to gold mining stocks and
Japanese stocks, both of which posted losses during the quarter
ended January 31, 1997. 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. In the portfolio, investments
in the gold sector remain focused on companies with low costs and
strong production and reserves growth potential. Japanese stocks
continue to suffer from economic, political and currency
uncertainties. While we reduced the Trust's exposure to Japanese
equities, we continue to believe that the Japanese economy is
experiencing a moderate economic recovery. This, combined with a
weakening Japanese yen, could set the stage for an increase in
corporate profitability for many companies. Investments in Japan
remain focused on the steel and non-ferrous metals sectors, which
should benefit from any improved economic scenario.
Investment Activities
During the January quarter, there were no significant geographic or
industry allocation changes made in the portfolio. The Trust's
primary investment focus remained in the energy sector, followed by
a significant exposure to the base metals sector. As mentioned
above, we did reduce our exposure to the Japanese market, including
the elimination of our position in Asahi Chemical Industry Co., Ltd.
We also used the strength in stock prices in the energy sector as an
opportunity to realize profits in some exploration and production
company holdings. The proceeds from these sales were generally
invested back into the energy sector in companies which, in our
opinion, offered better value. New positions established during the
quarter included Gulf Canada Resources Ltd., a Canadian-based
exploration and production company with significant growth potential
in Indonesia; and Smedvig ASA, a Norwegian-based offshore drilling
and oil services company which is experiencing sharp increases in
the prices received for the use of their drilling services. Outside
the energy area, new positions established during the quarter
included Aber Resources Ltd., a Canadian-based diamond exploration
company; and Resolute Ltd., an Australian-based gold company with
significant production growth potential in West Africa.
In Conclusion
We continue to be optimistic on the outlook for investing in the
natural resource sector and are keeping cash levels in the portfolio
low. We remain encouraged by the prospect of an extended global
economic cycle, which should keep the demand for most basic
commodities on an upward trend. This should help strengthen the
supply/demand fundamentals for most natural resource industries
which, in turn, should have positive implications for the earnings
prospects of many resource-related companies.
<PAGE>
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 quarterly report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Peter A. Lehman)
Peter A. Lehman
Vice President and Portfolio Manager
March 4, 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.
<PAGE>
* 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).
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.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/96 +14.88% +8.85%
Five Years Ended 12/31/96 + 7.46 +6.31
Inception (10/24/88)
through 12/31/96 + 7.97 +7.26
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
<PAGE>
Year Ended 12/31/96 +13.65% +9.65%
Five Years Ended 12/31/96 + 6.36 +6.36
Ten Years Ended 12/31/96 + 7.04 +7.04
[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 12/31/96 +13.60% +12.60%
Inception (10/21/94)
through 12/31/96 + 7.69 + 7.69
[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 12/31/96 +14.56% +8.55%
Inception (10/21/94)
through 12/31/96 + 8.60 +5.96
[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--1/31/97 18.53 18.68 -- -- + 0.81
------ ------
Total $1.063 Total $2.400
<PAGE>
Cumulative total return as of 1/31/97: +88.80%**
<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
1996 16.51 18.55 0.189 0.018 +13.65
1/1/97--1/31/97 18.55 18.68 -- -- + 0.70
------ ------
Total $3.612 Total $1.471
Cumulative total return as of 1/31/97: +162.94%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<PAGE>
PERFORMANCE DATA (concluded)
<TABLE>
Performance Summary--Class 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--1/31/97 18.39 18.51 -- -- + 0.65
------ ------
Total $0.189 Total $0.138
Cumulative total return as of 1/31/97: +18.42%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
<TABLE>
Performance Summary--Class 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--1/31/97 18.50 18.64 -- -- + 0.76
------ ------
Total $0.189 Total $0.385
Cumulative total return as of 1/31/97: +20.75%**
<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
1/31/97 10/31/96 1/31/96 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Global Resources Trust Class A Shares $18.68 $18.08 $16.93 +11.50%(1) +4.40%(1)
ML Global Resources Trust Class B Shares 18.68 18.13 16.91 +11.63(1) +4.12(1)
ML Global Resources Trust Class C Shares 18.51 17.98 16.84 +11.08(1) +4.04(1)
ML Global Resources Trust Class D Shares 18.64 18.06 16.90 +11.46(1) +4.30(1)
ML Global Resources Trust Class A Shares--Total Return +12.94(2) +4.40(1)
ML Global Resources Trust Class B Shares--Total Return +11.74(3) +4.12(1)
ML Global Resources Trust Class C Shares--Total Return +11.62(4) +4.04(1)
ML Global Resources Trust Class D Shares--Total Return +12.63(5) +4.30(1)
<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 dividends and $0.189 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.018 per share ordinary
income dividends and $0.189 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.086 per share ordinary
income dividends and $0.189 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.186 per share ordinary
income dividends and $0.189 per share capital gains distributions.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Value Percent of
Industries Shares Held Common Stocks Cost (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Aluminum 70,000 Alcan Aluminium, Ltd. $ 1,829,660 $ 2,467,500 1.1%
40,000 ++Alumax, Inc. 1,317,446 1,400,000 0.6
17,000 Aluminum Company of America 891,028 1,173,000 0.5
------------ ------------ ------
4,038,134 5,040,500 2.2
<PAGE>
Chemicals 16,000 Air Products and Chemicals, Inc. 720,944 1,142,000 0.5
62,000 BASF AG 1,487,566 2,244,293 1.0
24,000 Dow Chemical Co. (The) 1,653,823 1,851,000 0.8
33,600 duPont (E.I.) de Nemours & Co. 2,082,408 3,683,400 1.6
------------ ------------ ------
5,944,741 8,920,693 3.9
Diamonds 48,650 ++Aber Resources Ltd. 755,709 850,689 0.4
Diversified Companies 102,000 Asahi Glass Co., Ltd. 1,223,974 908,911 0.4
59,200 Canadian Pacific, Ltd. 898,852 1,605,800 0.7
26,500 Coastal Corp. 674,667 1,281,938 0.6
125,000 Cyprus Amax Minerals Co. 3,117,625 2,796,875 1.2
80,000 Norcen Energy Resources Ltd. 1,030,220 1,963,172 0.8
85,000 Occidental Petroleum Corp. 1,655,715 2,167,500 0.9
273,000 RGC Ltd. 1,101,112 1,091,707 0.5
------------ ------------ ------
9,702,165 11,815,903 5.1
Gold 699,000 ++Acacia Resources Ltd. 1,413,299 1,192,639 0.5
228,600 ++Amax Gold, Inc. 1,366,292 1,428,750 0.6
94,500 Ashanti Goldfields Co. Ltd. (GDR)** 2,346,106 1,181,250 0.5
122,500 Cambior Inc. 1,625,848 1,760,005 0.8
903,900 ++Delta Gold N.L. 1,698,537 1,507,816 0.7
163,200 Driefontein Consolidated Ltd. 2,534,252 1,493,719 0.7
685,000 Great Central Mines N.L. 2,121,872 1,638,341 0.7
270,800 ++Miramar Mining Corp. 1,409,218 1,125,988 0.5
291,100 Newcrest Mining Ltd. 1,244,156 1,113,089 0.5
105,622 Newmont Mining Corp. 4,102,539 4,211,677 1.8
195,000 Placer Dome Inc. 4,363,154 3,973,125 1.7
131,500 Prime Resources Group, Inc. 1,286,428 937,333 0.4
635,000 Resolute Ltd. 1,335,969 1,247,893 0.5
165,000 Santa Fe Pacific Gold Corp. 2,036,985 2,536,875 1.1
158,000 ++TVX Gold Inc. 1,272,815 1,224,500 0.5
------------ ------------ ------
30,157,470 26,573,000 11.5
Integrated Oil 59,000 Amerada Hess Corp. 3,106,571 3,481,000 1.5
Companies--Domestic 28,000 Amoco Corp. 1,566,180 2,436,000 1.1
------------ ------------ ------
4,672,751 5,917,000 2.6
<PAGE>
Integrated Oil 495,200 British Petroleum Co., PLC 2,004,658 5,828,684 2.5
Companies-- 75,000 Ente Nazionale Idrocarburi S.p.A.
International (ENI)(ADR)* 3,506,250 4,162,500 1.8
11,800 OMV AG 1,254,684 1,341,816 0.6
149,800 Petro-Canada (Installment Receipts) (a) 1,172,496 1,891,225 0.8
78,800 Repsol, S.A. 2,272,896 3,119,498 1.4
83,100 Societe Nationale Elf Aquitaine (ADR)* 2,998,803 4,030,350 1.7
56,100 Total, S.A. (Class B) 3,455,109 4,828,861 2.1
87,000 Yacimientos Petroliferos Fiscales
S.A. (ADR)* 2,121,850 2,425,125 1.1
------------ ------------ ------
18,786,746 27,628,059 12.0
</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 $ 1,564,750 0.7%
1,458,000 ++Centaur Mining & Exploration Ltd. 2,198,772 2,210,012 1.0
141,100 Falconbridge Ltd. 3,116,884 3,237,296 1.4
38,800 Inco Ltd. 1,284,094 1,314,350 0.6
316,800 Industrias Penoles, S.A. de C.V. 1,391,890 1,338,249 0.6
2,470,000 M.I.M. Holdings Ltd. 5,396,407 3,292,448 1.4
184,159 Minsur S.A. 597,621 629,210 0.3
446,000 Mitsubishi Materials Corp. 2,245,661 1,641,221 0.7
127,900 Noranda Inc. 2,409,183 3,053,152 1.3
150,000 Outokumpu OY 2,732,694 2,427,731 1.0
53,100 P.T. Tambang Timah (GDR)**++++ 661,263 1,107,135 0.5
754,500 Pasminco Ltd. 1,010,576 1,321,816 0.6
31,200 Phelps Dodge Corp. 1,819,777 2,180,100 0.9
615,000 QNI Ltd. 1,235,188 1,166,429 0.5
246,100 RTZ Corp. PLC (The) 3,193,164 3,588,815 1.6
32,000 Rio Algom Ltd. 619,108 765,073 0.3
1,820,000 Savage Resources Ltd. 1,372,913 1,802,182 0.8
222,000 Savage Resources Ltd. (Warrants) (b) 29,591 54,957 0.0
275,000 Sumitomo Metal Mining Co. Ltd. 2,291,588 1,704,002 0.7
157,000 Trelleborg 'B' Fria 2,143,836 2,352,572 1.0
854,400 WMC Ltd. 5,101,474 5,245,420 2.3
233,000 ++Westmin Resources Ltd. 1,221,705 1,150,468 0.5
------------ ------------ ------
43,718,224 43,147,388 18.7
<PAGE>
Oil & Gas Producers 105,000 Apache Corp. 2,803,915 4,029,375 1.8
338,000 ++Chauvco Resources, Ltd. 3,915,541 3,777,027 1.6
53,500 ++Chieftain International Inc. 1,193,792 1,310,750 0.6
123,200 ++Enserch Exploration Inc. 1,228,418 1,309,000 0.6
293,200 Enterprise Oil PLC 1,969,823 3,246,684 1.4
388,400 ++Gulf Canada Resources Ltd. 2,908,508 3,178,331 1.4
38,300 Louisiana Land and Exploration Co. (The) 1,566,743 2,154,375 0.9
111,600 Mitchell Energy & Development Corp.
(Class B) 2,267,579 2,524,950 1.1
134,500 ++Northrock Resources Ltd. 1,078,782 1,532,948 0.7
95,000 ++Oryx Energy Co. 1,588,361 2,303,750 1.0
20,500 Pancanadian Petroleum Ltd. 777,815 913,276 0.4
1,003,000 Premier Oil Co. PLC 366,120 658,996 0.3
470,000 Ranger Oil Ltd. 3,154,505 4,406,250 1.9
53,100 Sonat Inc. 1,898,978 2,827,575 1.2
51,400 Vastar Resources, Inc. 1,384,713 1,856,825 0.8
------------ ------------ ------
28,103,593 36,030,112 15.7
Oil Services 66,200 ++Coflexip Stena Offshore, Inc. (ADR)* 1,405,958 1,837,050 0.8
35,700 IHC Caland N.V. 743,752 2,093,722 0.9
50,600 ++Petroleum Geo-Services ASA (ADR)* 1,476,197 2,175,800 0.9
22,000 Schlumberger Ltd. 1,261,207 2,444,750 1.1
53,400 ++Smedvig ASA (ADR)* 1,134,750 1,274,925 0.5
37,500 Transocean Offshore Drilling Inc. 2,296,948 2,456,250 1.1
------------ ------------ ------
8,318,812 12,282,497 5.3
</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 152,133 Aracruz Celulose S.A. (ADR)* $ 609,565 $ 1,293,130 0.6%
168,700 Avenor Inc. 3,241,945 2,736,928 1.2
85,000 Empresa Nacional de Celulosas S.A.
(ENCE) 1,253,909 1,051,161 0.5
44,900 Georgia-Pacific Corp. 2,852,927 3,305,762 1.4
31,400 International Paper Co. 1,181,729 1,283,475 0.6
380,000 Metsa Serla OY 'B' 3,278,455 2,771,506 1.2
80,000 Mo Och Domsjo AB Co. 1,813,899 2,193,128 0.9
326,496 Slocan Forest Products Ltd. 2,870,774 3,575,747 1.5
85,000 Weyerhaeuser Co. 3,609,350 3,867,500 1.7
34,000 Willamette Industries, Inc. 1,278,536 2,137,750 0.9
------------ ------------ ------
21,991,089 24,216,087 10.5
Petroleum Refining 25,200 Sun Company, Inc. 634,720 664,650 0.3
250,000 Total Petroleum (North America), Ltd. 3,028,198 2,656,250 1.2
------------ ------------ ------
3,662,918 3,320,900 1.5
<PAGE>
Plantations 717,000 Golden Hope Plantations BHD 1,325,785 1,269,282 0.5
720,000 Kuala Lumpur Kepong BHD 983,702 1,897,405 0.8
------------ ------------ ------
2,309,487 3,166,687 1.3
Steel 472,000 British Steel PLC 1,240,738 1,130,788 0.5
703,000 ++Kobe Steel Ltd. 2,038,466 1,218,069 0.5
62,000 Koninklijke Nederlandsche Hoogovens
en Staalfabrienken N.V. 2,697,473 2,551,038 1.1
769,000 Nippon Steel Corp. 2,618,321 1,903,465 0.8
1,262,000 Sumitomo Metal Industries, Ltd. 4,094,148 2,748,911 1.2
------------ ------------ ------
12,689,146 9,552,271 4.1
Wood Products 92,500 Louisiana-Pacific Corp. 2,943,595 1,919,375 0.8
115,000 ++Pacific Forest Products Ltd. 1,270,696 1,771,792 0.8
146,100 Riverside Forest Products Ltd. 2,401,223 2,028,564 0.9
------------ ------------ ------
6,615,514 5,719,731 2.5
Total Common Stocks 201,466,499 224,181,517 97.3
Face Amount Short-Term Securities
Repurchase $5,639,000 SBC Warburg Inc., purchased on
Agreements*** 1/31/1997 to yield 5.56% to 2/03/1997 5,639,000 5,639,000 2.5
Total Short-Term Securities 5,639,000 5,639,000 2.5
Total Investments $207,105,499 229,820,517 99.8
============
Other Assets Less Liabilities 485,233 0.2
------------ ------
Net Assets $230,305,750 100.0%
============ ======
<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 71% of the purchase
price of common stock of Petro-Canada. The Trust is obligated to pay
the remaining 29%, approximately $1,154,000 over the next year.
(b)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.
++Non-income producing security.
++++The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of January 31, 1997
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$207,105,499) (Note 1a) $ 229,820,517
Cash 13,637
Receivables:
Securities sold $ 2,977,408
Dividends 252,065
Beneficial interest sold 89,373 3,318,846
--------------
Prepaid registration fees and other assets (Note 1f) 36,709
--------------
Total assets 233,189,709
--------------
Liabilities: Payables:
Beneficial interest redeemed 1,046,853
Securities purchased 392,774
Investment adviser (Note 2) 119,491
Distributor (Note 2) 106,751 1,665,869
--------------
Accrued expenses and other liabilities 1,218,090
--------------
Total liabilities 2,883,959
--------------
Net Assets: Net assets $ 230,305,750
==============
<PAGE>
Net Assets Class A Shares of beneficial interest, $0.10 par value,
Consist of: unlimited number of shares authorized $ 122,338
Class B Shares of beneficial interest, $0.10 par value,
unlimited number of shares authorized 488,685
Class C Shares of beneficial interest, $0.10 par value,
unlimited number of shares authorized 19,166
Class D Shares of beneficial interest, $0.10 par value,
unlimited number of shares authorized 604,018
Paid-in capital in excess of par 203,093,563
Accumulated investment loss--net (110,850)
Undistributed realized capital gains on investments and
foreign currency transactions--net (Note 5) 3,379,371
Unrealized appreciation on investments and foreign
currency transactions--net 22,709,459
--------------
Net assets $ 230,305,750
==============
Net Asset Value: Class A--Based on net assets of $22,851,052 and 1,223,383
shares of beneficial interest outstanding $ 18.68
==============
Class B--Based on net assets of $91,300,036 and 4,886,846
shares of beneficial interest outstanding $ 18.68
==============
Class C--Based on net assets of $3,548,507 and 191,659
shares of beneficial interest outstanding $ 18.51
==============
Class D--Based on net assets of $112,606,155 and 6,040,183
shares of beneficial interest outstanding $ 18.64
==============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Six Months Ended January 31, 1997
<S> <S> <C> <C>
Investment Dividends (net of $98,104 foreign withholding tax) $ 1,607,995
Income Interest and discount earned 119,160
(Notes 1d & 1e): Other income 5,363
--------------
Total income 1,732,518
--------------
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 713,521
Account maintenance and distribution fees--Class B (Note 2) 480,654
Account maintenance fees--Class D (Note 2) 140,094
Transfer agent fees--Class D (Note 2) 112,321
Transfer agent fees--Class B (Note 2) 112,134
Custodian fees 73,872
Printing and shareholder reports 58,928
Registration fees (Note 1f) 40,897
Accounting services (Note 2) 35,187
Professional fees 29,867
Transfer agent fees--Class A (Note 2) 23,566
Account maintenance and distribution fees--Class C (Note 2) 21,467
Trustees' fees and expenses 20,668
Transfer agent fees--Class C (Note 2) 4,800
Pricing fees 2,100
Other 7,130
--------------
Total expenses 1,877,206
--------------
Investment loss--net (144,688)
--------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 8,343,491
(Loss) on Foreign currency transactions--net (41,901) 8,301,590
Investments & --------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 15,156,803
(Notes 1b, 1c, Foreign currency transactions--net (8,094) 15,148,709
1e & 3): -------------- --------------
Net realized and unrealized gain on investments and
foreign currency transactions 23,450,299
--------------
Net Increase in Net Assets Resulting from Operations $ 23,305,611
==============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
January 31, July 31,
Increase (Decrease) in Net Assets: 1997 1996
<S> <S> <C> <C>
Operations: Investment income (loss)--net $ (144,688) $ 1,649,490
Realized gain on investments and foreign currency transactions
--net 8,301,590 14,984,789
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 15,148,709 (8,334,916)
-------------- --------------
Net increase in net assets resulting from operations 23,305,611 8,299,363
-------------- --------------
<PAGE>
Dividends & Investment income--net:
Distributions to Class A (303,399) (238,068)
Shareholders Class B (98,601) (15,913)
(Note 1g): Class C (17,412) --
Class D (1,171,992) (869,875)
Realized gain on investments--net:
Class A (245,005) --
Class B (956,214) --
Class C (40,585) --
Class D (1,157,651) --
-------------- --------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (3,990,859) (1,123,856)
-------------- --------------
Beneficial Net decrease in net assets derived from beneficial
Interest interest transactions (18,245,850) (58,734,873)
Transactions -------------- --------------
(Note 4):
Net Assets: Total increase (decrease) in net assets 1,068,902 (51,559,366)
Beginning of period 229,236,848 280,796,214
-------------- --------------
End of period* $ 230,305,750 $ 229,236,848
============== ==============
<FN>
*Undistributed (accumulated) investment income (loss)--net $ (110,850) $ 1,625,242
============== ==============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
Class A
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
January 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 1997++ 1996++ 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 17.27 $ 16.70 $ 15.84 $ 14.07 $ 14.33
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .04 .22 .22 .22 .24
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net 1.79 .50 .88 1.69 (.26)
---------- ---------- ---------- ---------- ----------
Total from investment operations 1.83 .72 1.10 1.91 (.02)
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.23) (.15) (.24) (.14) (.24)
Realized gain on investments--net (.19) -- -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.42) (.15) (.24) (.14) (.24)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 18.68 $ 17.27 $ 16.70 $ 15.84 $ 14.07
========== ========== ========== ========== ==========
<PAGE>
Total Investment Based on net asset value per share 10.72%+++ 4.34% 7.05% 13.69% (.05%)
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses 1.02%* 1.03% 1.06% .92% .95%
Net Assets: ========== ========== ========== ========== ==========
Investment income--net .44%* 1.26% 1.34% 1.39% 1.62%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $ 22,851 $ 22,726 $ 28,729 $ 20,054 $ 12,087
========== ========== ========== ========== ==========
Portfolio turnover 12.58% 26.48% 31.64% 54.87% 66.78%
========== ========== ========== ========== ==========
Average commission rate paid++++ $ .0179 $ .0223 -- -- --
========== ========== ========== ========== ==========
<FN>
*Annualized.
**Total investment returns exclude the effect of sales loads.
++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.
The "Average Commission Rate Paid" includes commissions paid
in foreign currencies, which have been converted into US
dollars using the prevailing exchange rate on the date of
the transaction. Such conversions may significantly affect
the rate shown.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<PAGE>
<TABLE>
Financial Highlights (continued)
<CAPTION>
Class B
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
January 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 1997++++ 1996++++ 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 17.16 $ 16.62 $ 15.72 $ 14.02 $ 14.26
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income (loss)--net (.06) .03 .10 .05 .09
Realized and unrealized gain
(loss) on investments and foreign
currency transactions--net 1.79 .51 .84 1.70 (.24)
---------- ---------- ---------- ---------- ----------
Total from investment operations 1.73 .54 .94 1.75 (.15)
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.02) --++ (.04) (.05) (.09)
Realized gain on investments--net (.19) -- -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.21) -- (.04) (.05) (.09)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 18.68 $ 17.16 $ 16.62 $ 15.72 $ 14.02
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share 10.11%+++ 3.26% 5.95% 12.52% (1.02%)
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses 2.06%* 2.07% 2.08% 1.95% 1.99%
Net Assets: ========== ========== ========== ========== ==========
Investment income (loss)--net (.60%)* .20% .31% .35% .60%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period
Data: (in thousands) $ 91,300 $ 94,199 $ 141,800 $ 236,581 $ 208,113
========== ========== ========== ========== ==========
Portfolio turnover 12.58% 26.48% 31.64% 54.87% 66.78%
========== ========== ========== ========== ==========
Average commission rate paid++++++ $ .0179 $ .0223 -- -- --
========== ========== ========== ========== ==========
<PAGE>
<FN>
*Annualized.
**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.
The "Average Commission Rate Paid" includes commissions paid
in foreign currencies, which have been converted into US
dollars using the prevailing exchange rate on the date of
the transaction. Such conversions may significantly affect
the rate shown.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
Class C Class D
For the For the For the For the
The following per share data and ratios have Six For the Period Six For the Period
been derived from information provided in the Months Year Oct. 21, Months Year Oct. 21,
financial statements. Ended Ended 1994++ to Ended Ended 1994++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997++++ 1996++++ 1995 1997++++ 1996++++ 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning
Operating of period $ 17.08 $ 16.55 $ 15.93 $ 17.21 $ 16.67 $ 15.96
Performance: -------- -------- -------- -------- -------- --------
Investment income (loss)
--net (.07) .04 .05 .02 .17 .12
Realized and unrealized
gain on investments and
foreign currency
transactions--net 1.78 .49 .62 1.79 .50 .66
-------- -------- -------- -------- -------- --------
Total from investment
operations 1.71 .53 .67 1.81 .67 .78
-------- -------- -------- -------- -------- --------
Less dividends and
distributions:
Investment income--net (.09) -- (.05) (.19) (.13) (.07)
Realized gain on
investments--net (.19) -- -- (.19) -- --
-------- -------- -------- -------- -------- --------
Total dividends and
distributions (.28) -- (.05) (.38) (.13) (.07)
-------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 18.51 $ 17.08 $ 16.55 $ 18.64 $ 17.21 $ 16.67
======== ======== ======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value
Return:** per share 10.06%+++ 3.20% 4.26%+++ 10.60%+++ 4.06% 4.93%+++
======== ======== ======== ======== ======== ========
Ratios to Average Expenses 2.20%* 2.07% 2.20%* 1.27%* 1.27% 1.39%*
Net Assets: ======== ======== ======== ======== ======== ========
Investment income (loss)
--net (.77%)* .27% .28%* .19%* 1.00% 1.02%*
======== ======== ======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 3,549 $ 3,388 $ 2,800 $112,606 $108,924 $107,467
======== ======== ======== ======== ======== ========
Portfolio turnover 12.58% 26.48% 31.64% 12.58% 26.48% 31.64%
======== ======== ======== ======== ======== ========
Average commission rate
paid++++++ $ .0179 $ .0223 -- $ .0179 $ .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. The "Average
Commission Rate Paid" includes commissions paid in foreign
currencies, which have been converted into US dollars using the
prevailing exchange rate on the date of the transaction. Such
conversions may significantly affect the rate shown.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
<PAGE>
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. These unaudited financial
statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. 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.
* Forward foreign exchange contracts--The Trust is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Trust's records. However, the effect on net
investment income is recorded from the date the Trust enters into
such contracts. Premium or discount is amortized over the life of
the contracts.
<PAGE>
* Options--The Trust can write covered call options and purchase put
options. When the Trust writes an option, an amount equal to the
premium received by the Trust is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written. When a security is purchased or sold through an exercise of
an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Trust enters into a closing transaction), the Trust
realizes a gain or loss on the option to the extent of the premiums
received or paid (or 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.
NOTES TO FINANCIAL STATEMENTS (continued)
(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 dates. Dividends from foreign securities where the ex-
dividend date may have passed are subsequently recorded when the
Trust has determined 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.
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 six months ended January 31, 1997, 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 $ 116 $ 1,788
Class D $1,195 $15,978
For the six months ended January 31, 1997, MLPF&S received
contingent deferred sales charges of $134,894 and $1,793 relating to
transactions in Class B and Class C Shares, respectively.
In addition, MLPF&S received $14,345 in commissions on the execution
of portfolio security transactions for the Fund for the six months
ended January 31, 1997.
During the six months ended January 31, 1997, the Fund paid Merrill
Lynch Security Pricing Service, an affiliate of MLPF&S, $749 for
security price quotations to compute the net asset values of the
Fund.
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, MLFDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended January 31, 1997 were $28,925,572 and
$55,853,927, respectively.
Net realized and unrealized gains (losses) as of January 31, 1997
were as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $8,343,491 $22,715,018
Foreign currency transactions (41,901) (5,559)
---------- -----------
Total $8,301,590 $22,709,459
========== ===========
<PAGE>
As of January 31, 1997, net unrealized appreciation for Federal
income tax purposes aggregated $22,715,018, of which $37,940,450
related to appreciated securities and $15,225,432 related to
depreciated securities. At January 31, 1997, the aggregate cost of
investments for Federal income tax purposes was $207,105,499.
4. Beneficial Interest Transactions:
Net decrease in net assets derived from beneficial interest
transactions was $18,245,850 and $58,734,873 for the six months
ended January 31, 1997 and the year ended July 31, 1996,
respectively.
Transactions in shares of beneficial interest for each class were as
follows:
Class A Shares for the Six Months Dollar
Ended January 31, 1997 Shares Amount
Shares sold 202,232 $ 3,698,178
Shares issued to shareholders
in reinvestment of dividends
and distributions 27,691 494,192
------------ ------------
Total issued 229,923 4,192,370
Shares redeemed (322,724) (5,916,352)
------------ ------------
Net decrease (92,801) $ (1,723,982)
============ ============
Class A Shares for the
Year Ended Dollar
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 B Shares for the
Six Months Ended Dollar
January 31, 1997 Shares Amount
<PAGE>
Shares sold 722,405 $ 13,133,023
Shares issued to shareholders
in reinvestment of dividends
and distributions 48,665 875,929
------------ ------------
Total issued 771,070 14,008,952
Automatic conversion of
shares (118,376) (2,149,546)
Shares redeemed (1,256,472) (22,937,786)
------------ ------------
Net decrease (603,778) $(11,078,380)
============ ============
Class B Shares for the
Year Ended Dollar
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 C Shares for the
Six Months Ended Dollar
January 31, 1997 Shares Amount
Shares sold 179,293 $ 3,252,040
Shares issued to shareholders
in reinvestment of dividends
and distributions 2,963 52,754
------------ ------------
Total issued 182,256 3,304,794
Shares redeemed (188,950) (3,423,955)
------------ ------------
Net decrease (6,694) $ (119,161)
============ ============
NOTES TO FINANCIAL STATEMENTS (concluded)
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
<PAGE>
Shares sold 395,590 $ 6,702,711
Shares redeemed (366,433) (6,164,383)
------------ ------------
Net increase 29,157 $ 538,328
============ ============
Class D Shares for the Six Months Dollar
Ended January 31, 1997 Shares Amount
Shares sold 286,916 $ 5,199,100
Automatic conversion
of shares 118,639 2,149,546
Shares issued to shareholders
in reinvestment of dividends
and distributions 95,866 1,709,679
------------ ------------
Total issued 501,421 9,058,325
Shares redeemed (789,077) (14,382,652)
------------ ------------
Net decrease (287,656) $ (5,324,327)
============ ============
Class D Shares for the
Year Ended Dollar
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)
============ ============
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.
<PAGE>
PORTFOLIO INFORMATION
For the Quarter Ended January 31, 1997
Percent of
Ten Largest Equity Holdings Net Assets
British Petroleum Co., PLC 2.5%
WMC Ltd. 2.3
Total, S.A. (Class B) 2.1
Ranger Oil Ltd. 1.9
Newmont Mining Corp. 1.8
Ente Nazionale Idrocarburi S.p.A.
(ENI) (ADR) 1.8
Apache Corp. 1.8
Societe Nationale Elf Aquitaine (ADR) 1.7
Placer Dome Inc. 1.7
Weyerhaeuser Co. 1.7
Additions
Aber Resources Ltd.
Gulf Canada Resources Ltd.
Resolute Ltd.
Smedvig ASA (ADR)
Sun Company, Inc.
Westmin Resources Ltd.
Deletions
Asahi Chemical Industry Co., Ltd.
Hanna (M.A.) Co.
UPM-Kymmene Corp.
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
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Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, New York 10286
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
