MERRILL LYNCH
GLOBAL
RESOURCES
TRUST
[GRAPHIC OMITTED]
STRATEGIC
Performance
Semi-Annual Report
January 31, 2000
<PAGE>
MERRILL LYNCH GLOBAL RESOURCES TRUST
DEAR SHAREHOLDER
During the three-month period ended January 31, 2000, Merrill Lynch Global
Resources Trust delivered flat performance as record warm temperatures at the
start of the 1999-2000 winter heating season caused selling pressure on our
holdings of natural gas stocks. During the January quarter, the Trust's Class A,
Class B, Class C and Class D Shares had total returns of +0.43%, +0.14%, +0.21%
and +0.40%, respectively, compared to a +1.08% total return for the Lipper
Analytical Services Inc.'s Natural Resources Fund average. (Fund results do not
reflect sales charges, and would be lower if sales charges were included.
Complete performance information can be found on pages 3 and 4 of this report to
shareholders.)
The recent weather-driven setback does not change our positive outlook for
energy stocks, particularly companies leveraged to North American natural gas
production and oil service activities. The arrival of more seasonal winter
weather in January is driving a modest recovery in natural gas share prices. In
addition, it is also drawing down natural gas inventories to normal historic
levels. This should set up a positive investment environment for our holdings in
the energy sector.
In our October 31, 1999 letter to shareholders, we discussed investors' concerns
regarding Organization of Petroleum Exporting Countries (OPEC) compliance. In
February, we traveled to the Middle East nations of Saudi Arabia, Qatar and
Kuwait, meeting with oil ministers as well as other senior energy officials and
oil company executives. Our visit affirmed that relations among OPEC members are
the best in years, and that OPEC members believe that a higher price range is
justified for oil. However, both the oil ministers of Saudi Arabia and Qatar
stated that they would be uncomfortable with a price of $30 per barrel of oil,
which could lead to fuel substitution and conservation. In addition, critical
factors that could affect production decisions include avoiding an acceleration
of overall inflation from the pass-through of higher energy costs, as well as
keeping oil prices at a level that will not diminish world economic growth,
particularly for the Asian region. While many analysts are forecasting that OPEC
will increase its production levels at its upcoming March meeting, the oil
ministers said that their research indicated that supply on the physical markets
was not as tight as that indicated by the $28-$29 per barrel oil prices seen in
the commodity exchanges. Therefore, oil prices could decline as seasonal demand
slows this summer. As a result, we believe that a production increase is not
guaranteed in March, and that any increase will be on the low end of
expectations. This should lead to a very positive fundamental environment for
oil and oil service companies this year, as earnings should accelerate beginning
with first quarter earnings results.
Our expectations for a positive oil price environment also support our
investments in natural gas production companies. The arrival of more seasonal
winter weather has resulted in solid withdrawals from natural gas storage. As of
mid-February, gas storage levels are nearly 400 billion cubic feet below
year-ago levels, and could approach normal levels by the end of the heating
season on March 31. Given the generally low replacement levels of gas production
by both major and independent oil companies last year, we believe that gas
prices will be supported at relatively high levels throughout the summer months.
The stocks of US and Canadian natural gas producers are trading near historic
low valuation levels, so we believe that solid returns may be achieved from our
investments in this sector.
Portfolio Matters
We continued to add new positions in the energy sector given our projection for
an improving fundamental outlook. New holdings added in the January quarter
included The Williams Companies, Inc. and Santa Fe International Corporation. We
reduced our
1
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
holdings in a few of our paper and forest product companies to fund our
additional energy investments since we were concerned that rising interest rates
might negatively affect the share prices in the paper sector.
We maintained our weighting in the metals sector, where our holding in
Stillwater Mining Company was the Trust's best-performing stock in the quarter,
delivering price appreciation in excess of 75%.
In Conclusion
While the warm start to the 1999-2000 winter caused price declines in many of
our energy holdings, the fundamental situation continues to improve. We believe
that rising earnings for oil companies will result in improved share price
performance in 2000, and that oil service companies will benefit as oil
companies increase their spending levels. Natural-resource investment returns
continue to exceed returns of the Standard & Poor's 500 Index, and we believe
that low valuation levels could result in continued relative performance gains
in the coming year. Many investors continue to abandon the natural resource
sector to chase the stellar returns delivered by technology investments.
However, we believe that investors should consider the role that investments in
basic resources can play in hedging potential increases in their home-heating
and transportation costs.
We appreciate your investment in Merrill Lynch Global Resources Trust, and we
look forward to sharing our investment outlook and strategies with you in our
next report to shareholders.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Robert M. Shearer
Robert M. Shearer
Senior Vice President and Portfolio Manager
March 8, 2000
2
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
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 "Recent Performance Results" and
"Average Annual Total Return" 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.
Recent Performance Results*
<TABLE>
<CAPTION>
Ten Years/
3 Month 12 Month Since Inception
As of January 31, 2000 Total Return Total Return Total Return
=====================================================================================
<S> <C> <C> <C>
ML Global Resources Trust Class A Shares +0.43% +27.45% +39.12%
- -------------------------------------------------------------------------------------
ML Global Resources Trust Class B Shares +0.14 +26.11 +25.35
- -------------------------------------------------------------------------------------
ML Global Resources Trust Class C Shares +0.21 +26.19 + 4.94
- -------------------------------------------------------------------------------------
ML Global Resources Trust Class D Shares +0.40 +27.14 + 9.45
=====================================================================================
</TABLE>
* Investment results shown do not reflect sales charges; results would be
lower if a sales charge was included. Total investment returns are based
on changes in net asset values for the periods shown, and assume
reinvestment of all dividends and capital gains distributions at net asset
value on the ex-dividend date. The Fund's ten-year/since inception periods
are ten years for Class A & Class B Shares and from 10/21/94 for Class C &
Class D Shares.
3
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
PERFORMANCE DATA (concluded)
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
================================================================================
Class A Shares*
================================================================================
Year Ended 12/31/99 +25.92% +19.31%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 + 3.56 + 2.45
- --------------------------------------------------------------------------------
Ten Years Ended 12/31/99 + 3.57 + 3.01
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%. (Prior to October 21, 1994, Class A Shares
were offered at a higher sales charge. Thus, actual returns would have
been lower than shown for the ten-year period.)
** Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
================================================================================
Class B Shares*
================================================================================
Year Ended 12/31/99 +24.69% +20.69%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 + 2.49 + 2.49
- --------------------------------------------------------------------------------
Ten Years Ended 12/31/99 + 2.50 + 2.50
- --------------------------------------------------------------------------------
* 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 12/31/99 +24.67% +23.67%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 + 2.48 + 2.48
- --------------------------------------------------------------------------------
Inception (10/21/94)
through 12/31/99 + 1.41 + 1.41
- --------------------------------------------------------------------------------
* 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 12/31/99 +25.71% +19.11%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 + 3.30 + 2.20
- --------------------------------------------------------------------------------
Inception (10/21/94)
through 12/31/99 + 2.23 + 1.17
- --------------------------------------------------------------------------------
* Maximum sales charge is 5.25%. ** Assuming maximum sales charge.
4
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
SCHEDULE OF INVESTMENTS (in US dollars)
<TABLE>
<CAPTION>
Percent of
Industries Shares Held Common Stocks Value Net Assets
===========================================================================================================
<S> <C> <C> <C> <C>
Aluminum 15,950 Alcoa Inc. $ 1,111,516 1.4%
===========================================================================================================
Canadian 60,400 Alberta Energy Company Ltd. 1,772,300 2.3
Independents 97,000 +Anderson Exploration Ltd. 1,138,498 1.5
109,000 +Baytex Energy Ltd. 790,182 1.0
161,850 +Canadian Hunter Exploration Ltd. 2,570,112 3.3
34,700 +Canadian Natural Resources Ltd. 802,575 1.0
65,900 Canadian Occidental Petroleum Ltd. 1,330,831 1.7
44,692 +Northrock Resources Ltd. 271,534 0.4
82,200 Paramount Resources Ltd. 822,908 1.1
67,800 +Rio Alto Exploration Ltd. 854,287 1.1
56,300 +Talisman Energy Inc. 1,496,513 2.0
----------- ------
11,849,740 15.4
===========================================================================================================
Chemicals 27,200 Air Products and Chemicals, Inc. 805,800 1.1
===========================================================================================================
Coal 22,400 CONSOL Energy Inc. 271,600 0.4
===========================================================================================================
Diversified 26,200 Ashland Inc. 853,137 1.1
Companies 47,000 +UCAR International Inc. 1,060,438 1.4
----------- ------
1,913,575 2.5
===========================================================================================================
Integrated Oil 17,700 Amerada Hess Corporation 941,419 1.2
Companies 31,200 Chevron Corporation 2,607,150 3.4
16,800 Conoco Inc. (Class A) 391,650 0.5
33,100 Conoco Inc. (Class B) 779,919 1.0
24,300 ENI SpA (ADR) (a) 1,149,694 1.5
32,214 Exxon Mobil Corporation 2,689,869 3.5
19,322 Kerr-McGee Corporation 1,069,956 1.4
37,700 Murphy Oil Corporation 2,163,037 2.8
8,800 Phillips Petroleum Company 359,700 0.5
15,200 Royal Dutch Petroleum Company
(NY Registered Shares) 836,950 1.1
16,650 Texaco Inc. 880,369 1.1
46,400 USX-Marathon Group 1,191,900 1.6
----------- ------
15,061,613 19.6
===========================================================================================================
Metals & Mining 1,174,009 M.I.M. Holdings Limited 1,032,996 1.3
79,500 Noranda, Inc. 982,498 1.3
11,900 Phelps Dodge Corporation 691,688 0.9
84,950 +Stillwater Mining Company 3,026,344 3.9
240,000 WMC Limited 1,218,989 1.6
119,840 +Zimbabwe Platinum Mines Limited 46,610 0.1
----------- ------
6,999,125 9.1
===========================================================================================================
</TABLE>
5
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<TABLE>
<CAPTION>
Percent of
Industries Shares Held Common Stocks Value Net Assets
===========================================================================================================
<S> <C> <C> <C> <C>
Oil & Gas Producers 31,900 Anadarko Petroleum Corporation $ 1,046,719 1.4%
54,700 Apache Corporation 1,996,550 2.6
22,900 +Barrett Resources Corporation 676,981 0.9
21,997 Burlington Resources Inc. 705,279 0.9
26,650 +Chieftain International, Inc. 456,381 0.6
60,300 Devon Energy Corporation 2,118,037 2.7
100,400 EOG Resources, Inc. 1,593,850 2.1
117,500 +Quicksilver Resources Inc. 447,969 0.6
9,800 +Stone Energy Corporation 365,050 0.5
42,000 Unocal Corporation 1,202,250 1.5
35,400 Vastar Resources, Inc. 1,969,125 2.5
----------- ------
12,578,191 16.3
===========================================================================================================
Oil Services 35,900 +BJ Services Company 1,539,212 2.0
35,900 Baker Hughes Incorporated 884,037 1.2
25,100 Coflexip SA (ADR) (a) 1,044,788 1.4
25,200 +Cooper Cameron Corporation 1,247,400 1.6
38,500 Ensign Resource Service Group, Inc. 890,465 1.2
38,100 Helmerich & Payne, Inc. 895,350 1.2
38,000 +Noble Drilling Corporation 1,113,875 1.4
55,600 +Precision Drilling Corporation 1,429,923 1.8
62,000 +R&B Falcon Corporation 786,625 1.0
35,600 Santa Fe International Corporation 952,300 1.2
44,600 +Stolt Comex Seaway, SA 563,075 0.7
20,300 +Stolt Comex Seaway, SA (ADR) (a) 230,913 0.3
42,325 +Weatherford International, Inc. 1,589,833 2.1
----------- ------
13,167,796 17.1
===========================================================================================================
Paper & Pulp 64,000 Abitibi-Consolidated Inc. 801,988 1.0
32,066 Aracruz Celulose SA (ADR) (a) 719,481 0.9
103,800 +Canfor Corporation 1,189,644 1.6
318,300 Jefferson Smurfit Group PLC 902,826 1.2
33,000 +Packaging Corp. of America 398,063 0.5
39,665 +Smurfit-Stone Container Corporation 785,863 1.0
155,400 +St. Laurent Paperboard Inc. 1,958,057 2.5
169,700 +Tembec Inc. 'A' 1,816,038 2.4
----------- ------
8,571,960 11.1
===========================================================================================================
Pipelines 25,100 The Coastal Corporation 925,562 1.2
28,400 Equitable Resources, Inc. 979,800 1.3
22,400 The Williams Companies, Inc. 868,000 1.1
----------- ------
2,773,362 3.6
===========================================================================================================
</TABLE>
6
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<TABLE>
<CAPTION>
Percent of
Industries Shares Held Common Stocks Value Net Assets
===========================================================================================================
<S> <C> <C> <C> <C>
Refining 19,600 Sunoco, Inc. $ 452,025 0.6%
===========================================================================================================
Steel 136,500 The LTV Corporation 477,750 0.6
===========================================================================================================
Total Common Stocks (Cost--$71,026,657) 76,034,053 98.8
===========================================================================================================
<CAPTION>
Face
Amount Short-Term Securities
===========================================================================================================
<S> <C> <C> <C> <C>
Repurchase $ 1,367,000 Warburg Dillion Read LLC, purchased on
Agreements* 1/31/2000 to yield 5.69% to 2/01/2000 1,367,000 1.8
===========================================================================================================
Total Short-Term Securities (Cost--$1,367,000) 1,367,000 1.8
===========================================================================================================
Total Investments (Cost--$72,393,657) 77,401,053 100.6
Liabilities in Excess of Other Assets (427,964) (0.6)
----------- ------
Net Assets $76,973,089 100.0%
=========== ======
===========================================================================================================
</TABLE>
(a)American Depositary Receipts (ADR).
* Repurchase Agreements are fully collateralized by US Government & Agency
Obligations.
+ Non-income producing security.
See Notes to Financial Statements.
7
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
FINANCIAL INFORMATION
Statement of Assets and Liabilities as of January 31, 2000
<TABLE>
<C> <S> <C> <C>
Assets: Investments, at value (identified cost--$72,393,657) ...... $ 77,401,053
Cash ...................................................... 51
Receivables:
Securities sold ....................................... $ 645,626
Beneficial interest sold .............................. 59,472
Dividends ............................................. 38,439 743,537
------------
Prepaid registration fees and other assets ................ 32,658
------------
Total assets .............................................. 78,177,299
------------
===========================================================================================================================
Liabilities: Payables:
Securities purchased .................................. 792,000
Beneficial interest redeemed .......................... 197,761
Investment adviser .................................... 40,731
Distributor ........................................... 28,464 1,058,956
------------
Accrued expenses and other liabilities .................... 145,254
------------
Total liabilities ......................................... 1,204,210
------------
===========================================================================================================================
Net Assets: Net assets ................................................ $ 76,973,089
============
===========================================================================================================================
Net Assets Class A Shares of beneficial interest, $.10 par value,
Consist of: unlimited number of shares authorized ..................... $ 57,012
Class B Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized ..................... 126,728
Class C Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized ..................... 10,771
Class D Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized ..................... 326,516
Paid-in capital in excess of par .......................... 95,018,071
Accumulated investment loss--net .......................... (189,758)
Accumulated realized capital losses on investments and
foreign currency transactions--net ........................ (10,702,268)
Accumulated distributions in excess of realized capital
gains on investments and foreign currency transactions--net (12,680,790)
Unrealized appreciation on investments and foreign currency
transactions--net ......................................... 5,006,807
------------
Net assets ................................................ $ 76,973,089
============
===========================================================================================================================
Net Asset Value: Class A--Based on net assets of $8,424,077 and 570,116
shares of beneficial interest outstanding ........ $ 14.78
============
Class B--Based on net assets of $18,728,455 and 1,267,276
shares of beneficial interest outstanding ........ $ 14.78
============
Class C--Based on net assets of $1,572,093 and 107,712
shares of beneficial interest outstanding ........ $ 14.60
============
Class D--Based on net assets of $48,248,464 and 3,265,159
shares of beneficial interest outstanding ........ $ 14.78
============
===========================================================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
FINANCIAL INFORMATION (continued)
Statement of Operations for the Six Months Ended January 31, 2000
<TABLE>
<C> <S> <C> <C>
Investment Dividends (net of $13,407 foreign withholding tax) . $ 456,613
Income: Interest and discount earned ....................... 74,488
-----------
Total income ....................................... 531,101
-----------
====================================================================================================================
Expenses: Investment advisory fees ........................... $ 256,052
Account maintenance & distribution fees--Class B ... 102,580
Account maintenance fees--Class D .................. 67,309
Transfer agent fees--Class D ....................... 60,161
Professional fees .................................. 42,313
Custodian fees ..................................... 33,068
Printing and shareholder reports ................... 30,123
Registration fees .................................. 29,474
Transfer agent fees--Class B ....................... 27,611
Trustees' fees and expenses ........................ 27,141
Transfer agent fees--Class A ....................... 10,213
Account maintenance & distribution fees--Class C ... 9,316
Accounting services ................................ 6,807
Transfer agent fees--Class C ....................... 2,502
Pricing fees ....................................... 2,455
Other .............................................. 2,662
----------
Total expenses ..................................... 709,787
-----------
Investment loss--net ............................... (178,686)
-----------
====================================================================================================================
Realized & Realized loss from:
Unrealized Gain Investments--net ............................... (3,609,280)
(Loss) on Foreign currency transactions--net ............. (18,762) (3,628,042)
Investments & ----------- -----------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net ............................... (575,798)
Foreign currency transactions--net ............. 104,146 (471,652)
----------- -----------
Net Decrease in Net Assets Resulting from Operations $(4,278,380)
===========
====================================================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
FINANCIAL INFORMATION (continued)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
January 31, July 31,
Increase (Decrease) in Net Assets: 2000 1999
=================================================================================================================================
<C> <S> <C> <C>
Operations: Investment income (loss)--net ..................................... $ (178,686) $ 260,373
Realized loss on investments and foreign currency transactions--net (3,628,042) (12,680,790)
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net ............................ (471,652) 28,187,908
------------ ------------
Net increase (decrease) in net assets resulting from operations ... (4,278,380) 15,767,491
------------ ------------
=================================================================================================================================
Dividends & Investment income--net:
Distributions Class A ....................................................... (23,800) (112,274)
to Shareholders: Class D ....................................................... (64,246) (510,053)
In excess of investment income--net:
Class A ....................................................... -- (11,492)
Class D ....................................................... -- (52,205)
In excess of realized gain on investments--net:
Class A ....................................................... -- (51,962)
Class C ....................................................... -- (4,683)
Class D ....................................................... -- (348,806)
------------
Net decrease in net assets resulting from dividends and
distributions to shareholders ..................................... (88,046) (1,091,475)
------------ ------------
=================================================================================================================================
Beneficial Interest Net decrease in net assets derived from beneficial
Transactions: interest transactions ............................................. (7,985,577) (25,907,606)
------------ ------------
=================================================================================================================================
Net Assets: Total decrease in net assets ...................................... (12,352,003) (11,231,590)
Beginning of period ............................................... 89,325,092 100,556,682
------------ ------------
End of period* .................................................... $ 76,973,089 $ 89,325,092
============ ============
*Undistributed (accumulated) investment income (loss)--net ......... $ (189,758) $ 76,974
============ ============
=================================================================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
FINANCIAL INFORMATION (continued)
Financial Highlights
<TABLE>
<CAPTION>
Class A+
---------------------------------------------------------
For the
Six Months
The following per share data and ratios have been derived Ended For the Year Ended July 31,
from information provided in the financial statements. January 31, ------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
======================================================================================================================
<C> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $15.52 $12.93 $ 19.90 $ 17.27 $ 16.70
Operating ------ ------ ------- ------- -------
Performance: Investment income (loss)--net .......... --++ .10 .13 .14 .22
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net ...................... (.70) 2.75 (5.00) 2.91 .50
------ ------ ------- ------- -------
Total from investment operations ....... (.70) 2.85 (4.87) 3.05 .72
Less dividends and distributions:
Investment income--net ............. (.04) (.17) (.10) (.23) (.15)
In excess of investment income--net -- (.01) -- -- --
Realized gain on investments--net .. -- -- (1.35) (.19) --
------ ------ ------- ------- -------
In excess of realized gain on
investments--net ................... -- (.08) (.65) -- --
------ ------ ------- ------- -------
Total dividends and distributions ...... (.04) (.26) (2.10) (.42) (.15)
------ ------ ------- ------- -------
Net asset value, end of period ......... $14.78 $15.52 $ 12.93 $ 19.90 $ 17.27
====== ====== ======= ======= =======
======================================================================================================================
Total Investment Based on net asset value per share ..... (4.49%)++ 22.91% (27.00%) 17.95% 4.34%
Return:** ====== ====== ======= ======= =======
======================================================================================================================
Ratios to Average Expenses ............................... 1.23%* 1.28% 1.07% 1.01% 1.03%
Net Assets: ====== ====== ======= ======= =======
Investment income (loss)--net .......... .00%* .75% .79% .76% 1.26%
====== ====== ======= ======= =======
======================================================================================================================
Supplemental Net assets, end of period (in thousands) $8,424 $9,138 $ 9,082 $18,504 $22,726
Data: ====== ====== ======= ======= =======
Portfolio turnover ..................... 28.42% 50.48% 21.04% 24.23% 26.48%
====== ====== ======= ======= =======
======================================================================================================================
</TABLE>
* Annualized.
** Total investment returns exclude the effects of sales
charges.
+ Based on average shares outstanding.
++ Amount is less than $.01 per share.
++ Aggregate total investment return.
See Notes to Financial Statements.
11
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
FINANCIAL INFORMATION (continued)
Financial Highlights (continued)
<TABLE>
<CAPTION>
Class B+
----------------------------------------------------------
For the
Six Months
The following per share data and ratios have been derived Ended For the Year Ended July 31,
from information provided in the financial statements. January 31, -------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
========================================================================================================================
<C> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $ 15.56 $ 12.79 $ 19.80 $ 17.16 $ 16.62
Operating ------- ------- ------- ------- -------
Performance: Investment income (loss)--net .......... (.08) (.04) (.05) (.05) .03
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net ...................... (.70) 2.81 (4.96) 2.90 .51
------- ------- ------- ------- -------
Total from investment operations ....... (.78) 2.77 (5.01) 2.85 .54
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net ............. -- -- -- (.02) --++
Realized gain on investments--net .. -- -- (1.35) (.19) --
In excess of realized gain on
investments--net ................... -- -- (.65) -- --
------- ------- ------- ------- -------
Total dividends and distributions ...... -- -- (2.00) (.21) --
------- ------- ------- ------- -------
Net asset value, end of period ......... $ 14.78 $ 15.56 $ 12.79 $ 19.80 $ 17.16
======= ======= ======= ======= =======
========================================================================================================================
Total Investment Based on net asset value per share ..... (5.01%)++ 21.66% (27.76%) 16.72% 3.26%
Return:** ======= ======= ======= ======= =======
========================================================================================================================
Ratios to Average Expenses ............................... 2.27%* 2.35% 2.11% 2.04% 2.07%
Net Assets: ======= ======= ======= ======= =======
Investment income (loss)--net .......... (1.03%)* (.28%) (.29%) (.29%) .20%
======= ======= ======= ======= =======
========================================================================================================================
Supplemental Net assets, end of period (in thousands) $18,728 $21,450 $29,794 $77,386 $94,199
Data: ======= ======= ======= ======= =======
Portfolio turnover ..................... 28.42% 50.48% 21.04% 24.23% 26.48%
======= ======= ======= ======= =======
========================================================================================================================
</TABLE>
* Annualized.
** Total investment returns exclude the effects
of sales charges.
+ Based on average shares outstanding.
++ Amount is less than $.01 per share.
++ Aggregate total investment return.
See Notes to Financial Statements.
12
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
FINANCIAL INFORMATION (continued)
Financial Highlights (continued)
<TABLE>
<CAPTION>
Class C+
---------------------------------------------------------------------
For the
Six Months
The following per share data and ratios have been derived Ended For the Year Ended July 31,
from information provided in the financial statements. January 31, ---------------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
==================================================================================================================================
<C> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $ 15.36 $ 12.67 $ 19.64 $ 17.08 $ 16.55
Operating --------- --------- --------- --------- ---------
Performance: Investment income (loss)--net .......... (.08) (.04) (.04) (.06) .04
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net ...................... (.68) 2.77 (4.93) 2.90 .49
--------- --------- --------- --------- ---------
Total from investment operations ....... (.76) 2.73 (4.97) 2.84 .53
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net ............. -- -- -- (.09) --
Realized gain on investments--net .. -- -- (1.35) (.19) --
In excess of realized gain on
investments--net ................... -- (.04) (.65) -- --
--------- --------- --------- --------- ---------
Total dividends and distributions ...... -- (.04) (2.00) (.28) --
--------- --------- --------- --------- ---------
Net asset value, end of period ......... $ 14.60 $ 15.36 $ 12.67 $ 19.64 $ 17.08
========= ========= ========= ========= =========
==================================================================================================================================
Total Investment Based on net asset value per share ..... (4.95%)++ 21.68% (27.78%) 16.77% 3.20%
Return:** ========= ========= ========= ========= =========
==================================================================================================================================
Ratios to Average Expenses ............................... 2.27%* 2.33% 2.12% 2.06% 2.07%
Net Assets: ========= ========= ========= ========= =========
Investment income (loss)--net .......... (1.01%)* (.33%) (.29%) (.33%) .27%
========= ========= ========= ========= =========
==================================================================================================================================
Supplemental Net assets, end of period (in thousands) $ 1,572 $ 2,039 $ 1,461 $ 2,680 $ 3,388
Data: ========= ========= ========= ========= =========
Portfolio turnover ..................... 28.42% 50.48% 21.04% 24.23% 26.48%
========= ========= ========= ========= =========
==================================================================================================================================
</TABLE>
* Annualized.
** Total investment returns exclude the effects of sales
charges.
+ Based on average shares outstanding.
++ Aggregate total investment return.
See Notes to Financial Statements.
13
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
FINANCIAL INFORMATION (concluded)
Financial Highlights (concluded)
<TABLE>
<CAPTION>
Class D+
--------------------------------------------------------------
For the
Six Months
The following per share data and ratios have been derived Ended For the Year Ended July 31,
from information provided in the financial statements. January 31, ---------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
==========================================================================================================================
<C> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $ 15.51 $ 12.89 $ 19.83 $ 17.21 $ 16.67
Operating ------- ------- ------- -------- --------
Performance: Investment income (loss)--net .......... (.02) .06 .09 .09 .17
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net ...................... (.69) 2.77 (4.99) 2.91 .50
------- ------- ------- -------- --------
Total from investment operations ....... (.71) 2.83 (4.90) 3.00 .67
------- ------- ------- -------- --------
Less dividends and distributions:
Investment income--net ............. (.02) (.12) (.04) (.19) (.13)
In excess of investment income--net -- (.01) -- -- --
Realized gain on investments--net .. -- -- (1.35) (.19) --
In excess of realized gain on
investments--net ................... -- (.08) (.65) -- --
------- ------- ------- -------- --------
Total dividends and distributions ...... (.02) (.21) (2.04) (.38) (.13)
------- ------- ------- -------- --------
Net asset value, end of period ......... $ 14.78 $ 15.51 $ 12.89 $ 19.83 $ 17.21
======= ======= ======= ======== ========
==========================================================================================================================
Total Investment Based on net asset value per share ..... (4.58%)++ 22.56% (27.15%) 17.66% 4.06%
Return:** ======= ======= ======= ======== ========
==========================================================================================================================
Ratios to Average Expenses ............................... 1.48%* 1.54% 1.32% 1.26% 1.27%
Net Assets: ======= ======= ======= ======== ========
Investment income (loss)--net .......... (.24%)* .50% .55% .51% 1.00%
======= ======= ======= ======== ========
==========================================================================================================================
Supplemental Net assets, end of period (in thousands) $48,249 $56,698 $60,220 $107,403 $108,924
Data: ======= ======= ======= ======== ========
Portfolio turnover ..................... 28.42% 50.48% 21.04% 24.23% 26.48%
======= ======= ======= ======== ========
==========================================================================================================================
</TABLE>
* Annualized.
** Total investment returns exclude the effects of sales
charges.
+ Based on average shares outstanding.
++ Aggregate total investment return.
See Notes to Financial Statements.
14
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Resources Trust (the "Trust") is registered under the
Investment Company Act of 1940 as a non-diversified, open-end management
investment company. The Fund's financial statements are prepared in accordance
with generally accepted accounting principles, which may require the use of
management accruals and estimates. 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 Trust offers four classes of shares under
the Merrill Lynch Select PricingSM 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 that 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 that 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 or purchased are valued at the last sale price in the case of
exchange-traded options. In the case of options traded in the over-the-counter
market, valuation is the last asked price (options written) or the last bid
price (options purchased). 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) Repurchase agreements -- The Trust invests in US Government securities
pursuant to repurchase agreements. Under such agreements, the counterparty
agrees to repurchase the security at a mutually agreed upon time and price. The
Trust takes possession of the underlying securities, marks to market such
securities and, if necessary, receives additional securities daily to ensure
that the contract is fully collateralized.
(c) 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.
o 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.
o 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 gain or loss 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.
(d) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at
15
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
NOTES TO FINANCIAL STATEMENTS (continued)
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.
(e) 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.
(f) 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 dates. Interest income is
recognized on the accrual basis. Realized gains and losses on security
transactions are determined on the identified cost basis.
(g) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(h) Dividends and distributions -- Dividends and distributions paid by the Trust
are recorded on the ex-dividend dates. Distributions in excess of realized
capital gains are due primarily to deferring tax treatments for post-October
losses.
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 ("MLFD" or the "Distributor"), a division of Princeton Funds
Distributor, Inc. ("PFD"), which is 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 .60%, on an annual basis, of the average daily value of the Trust's net
assets.
Pursuant to 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 ....................................... .25% .75%
Class C ....................................... .25% .75%
Class D ....................................... .25% --
- --------------------------------------------------------------------------------
Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce, Fenner
& Smith Incorporated ("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.
For the six months ended January 31, 2000, MLFD earned underwriting discounts
and MLPF&S earned dealer concessions on sales of the Trust's Class D Shares as
follows:
- --------------------------------------------------------------------------------
MLFD MLPF&S
- --------------------------------------------------------------------------------
Class D ........................................................ $231 $3,751
- --------------------------------------------------------------------------------
16
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
For the six months ended January 31, 2000, MLPF&S received contingent deferred
sales charges of $11,989 and $1,840 relating to transactions in Class B and C
Shares, respectively. Furthermore, MLPF&S received contingent deferred sales
charges of $244 and $23,423 relating to transactions subject to front-end sales
charge waivers in Class A and Class D Shares, respectively.
In addition, MLPF&S received $16,948 in commissions on the execution of
portfolio security transactions for the Trust for the six months ended January
31, 2000.
Financial Data Services, Inc. ("FDS"), 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, FDS, PFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended January 31, 2000 were $22,773,189 and $30,196,958, respectively.
Net realized losses for the six months ended January 31, 2000 and net unrealized
gains (losses) as of January 31, 2000 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Losses Gains (Losses)
- --------------------------------------------------------------------------------
Long-term investments ......................... $(3,609,280) $5,007,396
Foreign currency transactions ................. (18,762) (589)
----------- ----------
Total ......................................... $(3,628,042) $5,006,807
=========== ==========
- --------------------------------------------------------------------------------
As of January 31, 2000, net unrealized appreciation for Federal income tax
purposes aggregated $5,007,396, of which $10,945,513 related to appreciated
securities and $5,938,117 related to depreciated securities. At January 31,
2000, the aggregate cost of investments for Federal income tax purposes was
$72,393,657.
4. Beneficial Interest Transactions:
Net decrease in net assets derived from beneficial interest transactions was
$7,985,577 and $25,907,606 for the six months ended January 31, 2000 and for the
year ended July 31, 1999, respectively.
Transactions in shares of beneficial interest for each class were as follows:
- --------------------------------------------------------------------------------
Class A Shares for the Year Dollar
Ended July 31, 2000 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 224,995 $ 3,402,688
Shares issued to shareholders
in reinvestment of dividends ............. 1,475 20,889
----------- -----------
Total issued ............................. 226,470 3,423,577
Shares redeemed .......................... (245,255) (3,728,024)
----------- -----------
Net decrease ............................. (18,785) $ (304,447)
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1999 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 258,053 $ 3,353,195
Shares issued to shareholders
in reinvestment of dividends
and distributions ........................ 14,280 155,903
Total issued ............................. 272,333 3,509,098
Shares redeemed .......................... (385,907) (4,907,125)
----------- -----------
Net decrease ............................. (113,574) $(1,398,027)
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended January 31, 2000 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 143,158 $ 2,208,395
----------- -----------
Automatic conversion
of shares ................................ (36,253) (553,924)
Shares redeemed .......................... (218,503) (3,301,733)
----------- -----------
Net decrease ............................. (111,598) $(1,647,262)
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class B Shares for the Year Dollar
Ended July 31, 1999 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 265,094 $ 3,508,586
Automatic conversion
of shares ................................ (160,271) (2,040,380)
Shares redeemed .......................... (1,055,323) (13,211,981)
----------- -----------
Net decrease ............................. (950,500) $(11,743,775)
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class C Shares for the Six Months Dollar
Ended January 31, 2000 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 23,241 $ 348,537
Shares redeemed .......................... (48,264) (721,432)
----------- -----------
Net decrease ............................. (25,023) $ (372,895)
=========== ===========
- --------------------------------------------------------------------------------
17
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
- --------------------------------------------------------------------------------
Class C Shares for the Year Dollar
Ended July 31, 1999 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 80,297 $ 1,032,928
Shares issued to shareholders
in reinvestment of dividends
and distributions ........................ 380 4,096
----------- -----------
Total issued ............................. 80,677 1,037,024
Shares redeemed .......................... (63,244) (830,479)
----------- -----------
Net increase ............................. 17,433 $ 206,545
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class D Shares for the Six Months Dollar
Ended January 31, 2000 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 177,838 $ 2,863,563
Automatic conversion
of shares ................................ 36,305 553,924
Shares issued to shareholders
in reinvestment of dividends ............. 3,227 45,733
----------- -----------
Total issued ............................. 217,370 3,463,220
Shares redeemed .......................... (607,431) (9,124,193)
----------- -----------
Net decrease ............................. (390,061) $(5,660,973)
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class D Shares for the Six Months Dollar
Ended January 31, 1999 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .............................. 78,640 $ 1,010,759
Automatic conversion
of shares ................................ 160,807 2,040,380
Shares issued to shareholders
in reinvestment of dividends
and distributions ........................ 61,096 666,540
----------- ------------
Total issued ............................. 300,543 3,717,679
Shares redeemed .......................... (1,318,304) (16,690,028)
----------- ------------
Net decrease ............................. (1,017,761) $(12,972,349)
=========== ============
- --------------------------------------------------------------------------------
5. Capital Loss Carryforward:
At July 31, 1999, the Trust had a net capital loss carryforward of approximately
$9,970,000, all of which expires in 2007. This amount will be available to
offset like amounts of any future taxable gains.
PORTFOLIO INFORMATION
As of January 31, 2000
Percent of
Ten Largest Equity Holdings Net Assets
Stillwater Mining Company ...................... 3.9%
Exxon Mobil Corporation ........................ 3.5
Chevron Corporation ............................ 3.4
Canadian Hunter Exploration Ltd. ............... 3.3
Murphy Oil Corporation ......................... 2.8
Devon Energy Corporation ....................... 2.7
Apache Corporation ............................. 2.6
Vastar Resources, Inc. ......................... 2.5
St. Laurent Paperboard Inc. .................... 2.5
Tembec Inc. 'A' ................................ 2.4
Percent of
Geographic Allocation Net Assets
United States .................................. 63.2%
Canada ......................................... 27.8
Australia ...................................... 3.0
Italy .......................................... 1.5
France ......................................... 1.4
Norway ......................................... 1.0
Brazil ......................................... 0.9
18
<PAGE>
Merrill Lynch Global Resources Trust January 31, 2000
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
M. Colyer Crum, Trustee
Laurie Simon Hodrick, Trustee
Jack B. Sunderland, Trustee
J. Thomas Touchton, Trustee
Fred G. Weiss, Trustee
Arthur Zeikel, Trustee
Robert C. Doll, Senior Vice President
Robert M. Shearer, Senior Vice President and
Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Thomas D. Jones, III, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, NY 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
- --------------------------------------------------------------------------------
Donald Cecil and Edward H. Meyer, Trustees of Merrill Lynch Global Resources
Trust have recently retired. The Fund's Board of Trustees wishes Mr. Cecil and
Mr. Meyer well in their retirements.
- --------------------------------------------------------------------------------
19
<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--1/00
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