MERRILL LYNCH
EUROFUND
FUND LOGO
Semi-Annual Report
April 30, 2000
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund'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
EuroFund
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH EUROFUND
PORTFOLIO INFORMATION
As a Percentage of Stocks
As of April 30, 2000
A pie chart depicting the following percentages:
Norway--0.3%
Spain--1.5%
Sweden--3.3%
Italy--5.5%
Netherlands--7.3%
France--14.1%
United Kingdom--45.1%
Finland--4.7%
Hungary--1.0%
Ireland--0.9%
Switzerland--0.3%
Germany--16.06%
EUROPEAN STOCK MARKET PERFORMANCE
Total Return for the
Six-Month Period
Ended April 30, 2000
In US dollars*
A bar chart depicting the following percentages:
Ireland -8.6%
Switzerland -7.5%
United Kingdom -2.5%
Netherlands 0.3%
Norway 0.6%
Spain 6.0%
Denmark 6.1%
Germany 11.3%
France 11.5%
Italy 13.8%
Sweden 47.1%
Finland 77.8%
Source: Financial Times/Standard & Poor's--Actuaries Index.
*For the six-month period ended April 30, 2000, total investment
return for the Financial Times/Standard & Poor's--Actuaries Europe
Index was +5.81%.
Merrill Lynch EuroFund
April 30, 2000
DEAR SHAREHOLDER
During the six-month period ended April 30, 2000, the unmanaged
Financial Times/Standard & Poor's--Actuaries Europe Index had a
total return of +5.81%, while the total return of the unmanaged
Morgan Stanley Capital International (MSCI) Europe Index was +8.31%.
For the same period, Merrill Lynch EuroFund's Class A, Class B,
Class C and Class D Shares had total returns of +1.52%, +0.96%,
+0.98% and +1.39%, respectively. The Fund also underperformed the
Lipper Analytical Service, Inc.'s European Region Funds Average,
which had a +21.61% total return for the six months ended April 30,
2000. The Fund's performance reflected the negative stance we
adopted with regard to the markets and a focus on out-of-favor value
stocks. (Fund results shown do not reflect sales charges, and would
be lower if sales charges were included. Complete performance
information can be found on pages 3--4 of this report to
shareholders.)
Investment Environment
The last six months were turbulent for investors in European equity
markets, with frequent large price swings from market to market and
within individual sectors. By the end of April, 30-day volatility
had increased from 17.5% to 21.2% at the beginning of November,
reflecting the fluctuations in the overall market indexes. During
the period, performance was dominated by the so-called "TMT" sector
(telecommunications, media and technology companies), which posted
gains in excess of 50% led by telecommunication equipment providers
and media. Merger and acquisition activity was high in the TMT
sectors, with the Time Warner Inc./America Online Inc. merger
drawing particular attention, since it is the first to unite
companies from two previously distinct disciplines.
The other major factor during the last six months was the weakness
of the euro, which has confounded the view that the accelerating
pace of economic growth in the region would provide an impetus for
recovery. The continuing strength of the US economy, combined with
large inflows, has helped bolster the value of the dollar against
the euro.
Economic data continued to be robust in the United States and
Europe, as both personal spending and business investment increased,
reflecting strong consumer confidence levels and healthy corporate
profit margins. There has been a gradual tightening of monetary
policy in both regions, but as yet no significant inflationary
pressures are evident.
European bond prices edged upward over the last six months in the
face of monetary tightening, with the result that overall equity
market valuations have not moved significantly. Using traditional
measures, some markets appear fully valued in the short run, yet
given the absence of inflation and the growing equity culture within
Europe, the long-term attraction still holds.
In Conclusion
With increased uncertainty over potential inflationary pressures and
in light of significant market volatility, we continue to re-
evaluate the Fund's holdings. Accordingly, it is likely that some
changes in portfolio composition will occur, although any changes
are expected to be made in a gradual manner over the coming months.
We thank you for your investment in Merrill Lynch EuroFund, and we
look forward to reviewing our outlook and strategy with you in the
next report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(James A. Macmillan)
James A. Macmillan
Senior Portfolio Manager
June 9, 2000
We are pleased to announce that James A. Macmillan is responsible
for the day-to-day management of Merrill Lynch EuroFund. Mr.
Macmillan has been employed by Merrill Lynch Asset Management U.K.,
Ltd. (an affiliate of the Fund's investment adviser, Merrill Lynch
Asset Management, L.P.) since 1993.
Merrill Lynch EuroFund
April 30, 2000
PERFORMANCE DATA
About Fund Performance
Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after approximately 8 years. (There is no initial
sales charge for automatic share conversions.)
* Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
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.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/00 +12.95% + 7.02%
Five Years Ended 3/31/00 +20.29 +19.00
Ten Years Ended 3/31/00 +14.17 +13.55
*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 3/31/00 +11.74% + 8.04%
Five Years Ended 3/31/00 +19.04 +19.04
Ten Years Ended 3/31/00 +12.99 +12.99
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/00 +11.77% +10.85%
Five Years Ended 3/31/00 +19.02 +19.02
Inception (10/21/94)
through 3/31/00 +16.81 +16.81
*Maximum contingent deferred sales charge is 1% and is reduced
to 0% after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 3/31/00 +12.64% + 6.72%
Five Years Ended 3/31/00 +19.98 +18.70
Inception (10/21/94)
through 3/31/00 +17.75 +16.58
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch EuroFund
April 30, 2000
PERFORMANCE DATA (concluded)
<TABLE>
Recent Performance Results*
<CAPTION>
Ten Years/
6 Month 12 Month Since Inception
As of April 30, 2000 Total Return Total Return Total Return
<S> <C> <C> <C>
ML EuroFund Class A Shares +1.52% +3.38% +266.23%
ML EuroFund Class B Shares +0.96 +2.31 +230.30
ML EuroFund Class C Shares +0.98 +2.35 +126.89
ML EuroFund Class D Shares +1.39 +3.14 +137.09
*Investment results shown do not reflect sales charges; results
shown 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.
</TABLE>
PORTFOLIO INFORMATION
As of April 30, 2000
Percent of
Ten Largest Equity Holdings Net Assets
Unilever PLC 4.3%
Vodafone AirTouch PLC 3.2
Aventis SA 2.9
Societe Eurafrance SA 2.4
Lloyds TSB Group PLC 2.2
Bass PLC 2.1
Akzo Nobel NV 2.1
Whitbread PLC 2.1
Veba AG 2.0
RWE AG 1.9
Percent of
Ten Largest Industries Net Assets
Banking 15.4%
Food 13.0
Telecommunications 7.9
Chemicals 7.6
Insurance 7.3
Utilities 7.2
Capital Goods 4.3
Forestry 3.6
Holding Company 3.1
Mining 3.0
OFFICERS AND TRUSTEES
Charles C. Reilly, Trustee
Richard R. West, Trustee
Arthur Zeikel, Trustee
Edward D. Zinbarg, Trustee
Terry K. Glenn, Executive Vice President and Trustee
Robert C. Doll, Jr., Senior Vice President
James A. Macmillan, Senior Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Robert E. Putney, III, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
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 MerrillLynch EuroFund
have recently retired. The Fund's Board of Trustees wishes Mr. Cecil
and Mr. Meyer well in their retirements.
Merrill Lynch EuroFund
April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Percent of
Industries Held Investments Value Net Assets
Finland
<S> <C> <S> <C> <C>
Forestry 1,978,920 Metsa-Serla Oyj 'B' $ 16,825,627 1.2%
1,535,007 Stora Enso Oyj 'R' 15,876,969 1.1
504,764 UPM-Kymmene Oyj 13,109,756 1.0
-------------- ------
45,812,352 3.3
Mining 838,307 Outokumpu Oyj 9,893,142 0.7
Total Investments in Finland (Cost--$54,323,808) 55,705,494 4.0
France
Banking 295,865 Banque Nationale de Paris (BNP) 23,969,376 1.7
58,377 Societe Generale 'A' 12,118,723 0.9
-------------- ------
36,088,099 2.6
Chemicals 111,226 Aventis SA 6,132,295 0.4
618,961 ++Aventis SA 34,238,391 2.5
-------------- ------
40,370,686 2.9
Construction 111,562 Compagnie de Saint Gobain 15,260,134 1.1
Diversified Holdings 63,379 Vivendi 6,283,992 0.5
Holding Company 77,328 Societe Eurafrance SA 33,825,123 2.4
Machinery 137,845 Compagnie Fives-Lille 10,049,452 0.7
Mining 1,205,942 Usinor SA 15,880,188 1.1
Telecommunications 61,300 France Telecom SA 9,507,830 0.7
Total Investments in France (Cost--$136,487,770) 167,265,504 12.0
Germany
Banking 297,004 Deutsche Bank AG (Registered Shares) 20,001,755 1.4
218,660 HypoVereinsbank 13,569,937 1.0
-------------- ------
33,571,692 2.4
Capital Goods 133,568 Jungheinrich AG (Preferred) 1,095,485 0.1
658,870 Kloeckner-Werke AG 13,059,314 0.9
1,192,907 ++Thyssen Krupp AG 25,057,566 1.8
-------------- ------
39,212,365 2.8
Chemicals 316,373 Bayer AG 13,132,553 0.9
77,016 Henkel KGaA 4,014,564 0.3
283,852 Henkel KGaA (Preferred) 16,374,085 1.2
-------------- ------
33,521,202 2.4
Retail--Stores 198,273 Metro AG 7,543,648 0.6
Telecommunications 324,135 Deutsche Telekom AG (Registered Shares) 20,824,588 1.5
Utilities 832,434 RWE AG 26,854,337 1.9
563,998 Veba AG 27,934,344 2.0
-------------- ------
54,788,681 3.9
Total Investments in Germany (Cost--$192,997,483) 189,462,176 13.6
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
Industries Held Investments Value Net Assets
Hungary
<S> <C> <S> <C> <C>
Banking 118,537 ++OTP Bank Rt. (GDR)(a) $ 5,251,189 0.4%
Utilities 406,729 ++MOL Magyar Olaj-es Gazipari Rt. (GDR)(a) 7,117,758 0.5
Total Investments in Hungary (Cost--$16,774,089) 12,368,947 0.9
Ireland
Banking 1,331,922 Bank of Ireland 8,981,976 0.7
Food 710,986 Greencore Group PLC 1,971,996 0.1
Total Investments in Ireland (Cost--$13,709,771) 10,953,972 0.8
Italy
Energy 4,530,959 ENI SpA 22,585,974 1.6
Insurance 776,599 Assicurazioni Generali 22,151,469 1.6
Utilities 3,222,221 Telecom Italia SpA (Registered) 20,349,321 1.5
Total Investments in Italy (Cost--$64,820,994) 65,086,764 4.7
Netherlands
Chemicals 710,687 Akzo Nobel NV 29,163,637 2.1
269,634 ++European Vinyls Corporation International NV 3,194,327 0.2
-------------- ------
32,357,964 2.3
Diversified Holdings 327,079 Internatio-Muller NV 6,050,762 0.4
Insurance 319,903 ING Groep NV 17,497,487 1.3
Mining 1,161,001 Ispat International NV (NY Registered Shares) 13,569,199 1.0
Retail 113,452 Koninklijke Ahold NV 2,651,923 0.2
Services 532,775 Buhrmann NV 13,764,431 1.0
Total Investments in the Netherlands
(Cost--$90,076,787) 85,891,766 6.2
Norway
Services 495,709 Merkantildata ASA 3,407,411 0.2
Total Investments in Norway (Cost--$2,343,516) 3,407,411 0.2
Spain
Telecommunications 374,103 ++Telefonica SA 8,345,723 0.6
Utilities 422,858 Endesa SA 9,194,463 0.7
Total Investments in Spain (Cost--$17,846,267) 17,540,186 1.3
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
Industries Held Investments Value Net Assets
Sweden
<S> <C> <S> <C> <C>
Banking 1,567,731 Nordbanken Holding AB $ 9,893,533 0.7%
858,705 Skandinaviska Enskilda Banken (SEB) 'A' 9,399,429 0.7
-------------- ------
19,292,962 1.4
Capital Goods 189,250 Svedala Industri AB 2,578,856 0.2
Consumer 508,064 Electrolux AB 'B' 8,597,308 0.6
Forestry 199,180 Holmen AB 'B' 4,683,055 0.3
Mining 924,002 ++Avesta Sheffield AB 3,281,946 0.2
Total Investments in Sweden (Cost--$38,327,427) 38,434,127 2.7
Switzerland
Banking 27,803 Banque Cantonale de Geneve (BCG) 4,088,439 0.3
Total Investments in Switzerland (Cost--$9,263,273) 4,088,439 0.3
United Kingdom
Aerospace 4,469,974 Rolls-Royce PLC 16,629,698 1.2
Banking 1,783,712 Abbey National PLC 20,417,281 1.4
2,310,755 Alliance & Leicester PLC 23,015,009 1.6
1,020,231 Barclays PLC 26,213,832 1.9
3,113,678 Lloyds TSB Group PLC 30,597,939 2.2
1,244,164 Northern Rock PLC 6,444,133 0.5
-------------- ------
106,688,194 7.6
Capital Goods 3,378,255 Invensys PLC 16,255,352 1.2
891,827 Jarvis PLC 2,016,542 0.1
-------------- ------
18,271,894 1.3
Energy 4,576,716 British Energy PLC 12,246,413 0.9
Food 3,289,364 Allied Domecq PLC 16,200,802 1.2
2,315,251 Associated British Foods PLC 13,767,038 1.0
2,533,982 Bass PLC 29,778,465 2.1
1,472,181 Cadbury Schweppes PLC 10,113,106 0.7
2,567,183 Diageo PLC 20,868,980 1.5
10,057,858 Unilever PLC 60,632,711 4.3
3,226,380 Whitbread PLC 29,017,055 2.1
-------------- ------
180,378,157 12.9
Holding Company 1,632,334 British American Tobacco PLC 9,916,978 0.7
Insurance 1,065,477 Allied Zurich PLC 10,628,772 0.8
1,367,337 CGU PLC 19,652,308 1.4
530,380 Norwich Union PLC 3,639,281 0.2
56,989 Prudential Corporation PLC 879,279 0.1
4,754,985 Royal & Sun Alliance Insurance Group PLC 26,674,553 1.9
-------------- ------
61,474,193 4.4
Retail 3,657,477 J Sainsbury PLC 19,230,019 1.4
806,548 Kingfisher PLC 6,635,419 0.5
2,610,700 Safeway PLC 8,844,509 0.6
-------------- ------
34,709,947 2.5
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Shares Percent of
Industries Held Investments Value Net Assets
United Kingdom (concluded)
<S> <C> <S> <C> <C>
Services 4,960,063 Rentokil Initial PLC $ 13,640,848 1.0%
Telecommunications 912,581 British Telecommunications PLC 16,436,358 1.2
554,505 Cable & Wireless PLC 9,223,539 0.7
9,880,708 Vodafone AirTouch PLC 45,533,622 3.2
-------------- ------
71,193,519 5.1
Utilities 399,277 PowerGen PLC 2,528,832 0.2
621,507 Severn Trent PLC 6,336,060 0.4
-------------- ------
8,864,892 0.6
Total Investments in the United Kingdom
(Cost--$571,247,313) 534,014,733 38.2
Face
Amount Short-Term Securities
Foreign France Treasury Bills (b):
Commercial EURO 8,000,000 3.16% due 5/04/2000 7,288,869 0.5
Paper* 10,000,000 3.26% due 5/11/2000 9,104,379 0.7
2,000,000 3.35% due 6/08/2000 1,815,523 0.1
3,000,000 3.47% due 6/15/2000 2,721,280 0.2
Total Investments in Foreign Commercial Paper
(Cost--$22,505,217) 20,930,051 1.5
Repurchase US$ 6,094,000 Warburg Dillon Read LLC, purchased on
Agreements** 4/28/2000 to yield 5.73% to 5/01/2000 6,094,000 0.4
Total Investments in Repurchase Agreements
(Cost--$6,094,000) 6,094,000 0.4
Total Investments in Short-Term Securities
(Cost--$28,599,217) 27,024,051 1.9
Options Nominal Value Covered
Purchased by Options Purchased Issue
Put Options 16,008 DJ SToxx 50, expiring June 2000 at US$ 487 1,821,177 0.1
Purchased
Total Options Purchased (Premiums Paid--$3,519,753) 1,821,177 0.1
Total Investments (Cost--$1,240,337,468) 1,213,064,747 86.9
Variation Margin on Financial Futures Contracts*** (1,990,925) (0.1)
Foreign Time Deposits**** 273,887,891 19.6
Liabilities in Excess of Other Assets (88,823,270) (6.4)
-------------- ------
Net Assets $1,396,138,443 100.0%
============== ======
++Non-income producing security.
(a)Global Depositary Receipts (GDR).
(b)All or a portion of security held as collateral in connection
with open financial futures contracts.
*Certain Foreign Commercial Paper are traded on a discount basis;
the interest rates shown reflect the discount rates paid at the time
of purchase by the Fund.
**Repurchase Agreements are fully collateralized by US Government &
Agency Obligations.
***Financial futures contracts sold as of April 30, 2000 were as
follows:
Number of Expiration
Contracts Issue Exchange Date Value
1,955 CAC 40 CAC May 2000 $114,627,597
636 DAX 30 DAX June 2000 108,107,428
------------
Total Financial Futures Contracts Sold
(Total Contract Price--$218,797,632) $222,735,025
============
****Foreign time deposits bear interest at 3.75%, 3.77%, 3.84% and
3.85% and mature on 5/02/2000, 5/02/2000, 5/03/2000, and 5/03/2000,
respectively.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of April 30, 2000
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$1,236,817,715) $1,211,243,570
Options purchased (cost--$3,519,753) 1,821,177
Cash 11,680
Foreign cash 20,937,299
Foreign time deposits 273,887,891
Receivables:
Securities sold $ 33,795,325
Dividends 13,373,084
Beneficial interest sold 837,479
Interest 15,274 48,021,162
--------------
Prepaid registration fees and other assets 41,217
--------------
Total assets 1,555,963,996
--------------
Liabilities: Payables:
Securities purchased 151,983,891
Beneficial interest redeemed 3,481,786
Variation margin 1,990,925
Investment adviser 835,892
Distributor 585,704 158,878,198
--------------
Accrued expenses and other liabilities 947,355
--------------
Total liabilities 159,825,553
--------------
Net Assets: Net assets $1,396,138,443
==============
Net Assets Class A Shares of beneficial interest, $.10 par value, unlimited number
Consist of: of shares authorized $ 2,829,624
Class B Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized 4,781,696
Class C Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized 381,599
Class D Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized 2,342,551
Paid-in capital in excess of par 1,340,605,948
Accumulated investment loss--net (8,859,203)
Undistributed realized capital gains on investments and foreign
currency transactions--net 85,436,868
Unrealized depreciation on investments and foreign currency
transactions--net (31,380,640)
--------------
Net assets $1,396,138,443
==============
Net Asset Value: Class A--Based on net assets of $411,873,214 and 28,296,245 shares
of beneficial interest outstanding $ 14.56
==============
Class B--Based on net assets of $599,767,409 and 47,816,957 shares
of beneficial interest outstanding $ 12.54
==============
Class C--Based on net assets of $46,963,927 and 3,815,993 shares
of beneficial interest outstanding $ 12.31
==============
Class D--Based on net assets of $337,533,893 and 23,425,506 shares
of beneficial interest outstanding $ 14.41
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations for the Six Months Ended April 30, 2000
<S> <S> <C> <C>
Investment Dividends (net of $2,603,370 foreign withholding tax) $ 20,391,680
Income: Interest 3,024,118
--------------
Total income 23,415,798
--------------
Expenses: Investment advisory fees $ 5,848,421
Account maintenance and distribution fees--Class B 3,321,029
Transfer agent fees--Class B 523,547
Custodian fees 498,043
Account maintenance fees--Class D 435,026
Transfer agent fees--Class A 336,414
Account maintenance and distribution fees--Class C 248,122
Transfer agent fees--Class D 236,933
Accounting services 68,705
Registration fees 64,266
Professional fees 46,052
Transfer agent fees--Class C 42,003
Printing and shareholder reports 34,533
Trustees' fees and expenses 19,612
Pricing fees 10,752
Other 20,850
--------------
Total expenses 11,754,308
--------------
Investment income--net 11,661,490
--------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 118,813,263
(Loss) on Foreign currency transactions--net (31,910,384) 86,902,879
Investments & --------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net (86,564,157)
Foreign currency transactions--net 85,928 (86,478,229)
-------------- --------------
Net Increase in Net Assets Resulting from Operations $ 12,086,140
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2000 1999
<S> <S> <C> <C>
Operations: Investment income--net $ 11,661,490 $ 21,320,804
Realized gain on investments and foreign currency
transactions--net 86,902,879 264,283,426
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net (86,478,229) 81,990,705
-------------- --------------
Net increase in net assets resulting from operations 12,086,140 367,594,935
-------------- --------------
Dividends & Investment income--net:
Distributions to Class A (11,476,188) (20,840,015)
Shareholders: Class B (8,595,195) (22,268,040)
Class C (667,529) (1,663,399)
Class D (6,674,074) (10,640,376)
Realized gain on investments--net:
Class A (81,857,581) (99,747,120)
Class B (118,463,552) (147,583,398)
Class C (8,717,790) (9,884,004)
Class D (53,801,676) (54,000,884)
-------------- --------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (290,253,585) (366,627,236)
-------------- --------------
Beneficial Interest Net decrease in net assets derived from beneficial
Transactions: interest transactions (39,492,088) (133,919,709)
-------------- --------------
Net Assets: Total decrease in net assets (317,659,533) (132,952,010)
Beginning of period 1,713,797,976 1,846,749,986
-------------- --------------
End of period* $1,396,138,443 $1,713,797,976
============== ==============
*Undistributed (accumulated) investment income (loss)--net $ (8,859,203) $ 6,892,293
============== ==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
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
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 17.24 $ 17.52 $ 18.47 $ 16.67 $ 15.07
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .15 .28 .40 .26 .32
Realized and unrealized gain on investments
and foreign currency transactions--net .06 3.11 1.73 4.31 2.32
--------- --------- --------- --------- ---------
Total from investment operations .21 3.39 2.13 4.57 2.64
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.36) (.63) (.12) (.44) --
In excess of investment income--net -- -- -- (.15) --
Realized gain on investments--net (2.53) (3.04) (2.96) (2.18) (1.04)
--------- --------- --------- --------- ---------
Total dividends and distributions (2.89) (3.67) (3.08) (2.77) (1.04)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 14.56 $ 17.24 $ 17.52 $ 18.47 $ 16.67
========= ========= ========= ========= =========
Total Investment Based on net asset value per share 1.52%+++ 23.25% 13.73% 32.13% 18.86%
Return:** ========= ========= ========= ========= =========
Ratios to Average Expenses .98%* .97% 1.00% 1.03% 1.10%
Net Assets: ========= ========= ========= ========= =========
Investment income--net 1.92%* 1.70% 2.21% 1.53% 2.04%
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 411,873 $ 567,273 $ 691,197 $ 563,098 $ 216,056
Data: ========= ========= ========= ========= =========
Portfolio turnover 68.18% 61.12% 78.75% 92.65% 92.34%
========= ========= ========= ========= =========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
FINANCIAL INFORMATION (continued)
<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
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.15 $ 15.79 $ 16.92 $ 15.47 $ 14.20
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .07 .10 .17 .07 .14
Realized and unrealized gain on investments
and foreign currency transactions--net .03 2.76 1.60 3.99 2.17
--------- --------- --------- --------- ---------
Total from investment operations .10 2.86 1.77 4.06 2.31
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.18) (.46) -- (.32) --
In excess of investment income--net -- -- -- (.11) --
Realized gain on investments--net (2.53) (3.04) (2.90) (2.18) (1.04)
--------- --------- --------- --------- ---------
Total dividends and distributions (2.71) (3.50) (2.90) (2.61) (1.04)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 12.54 $ 15.15 $ 15.79 $ 16.92 $ 15.47
========= ========= ========= ========= =========
Total Investment Based on net asset value per share .96%+++ 21.96% 12.58% 30.84% 17.61%
Return:** ========= ========= ========= ========= =========
Ratios to Average Expenses 2.00%* 2.00% 2.03% 2.06% 2.13%
Net Assets: ========= ========= ========= ========= =========
Investment income--net 1.02%* .70% 1.07% .45% 1.00%
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 599,767 $ 730,361 $ 787,595 $ 811,859 $ 738,535
Data: ========= ========= ========= ========= =========
Portfolio turnover 68.18% 61.12% 78.75% 92.65% 92.34%
========= ========= ========= ========= =========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<CAPTION>
Class C++
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.93 $ 15.66 $ 16.82 $ 15.45 $ 14.19
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .07 .10 .19 .07 .15
Realized and unrealized gain on investments
and foreign currency transactions--net .03 2.72 1.56 3.97 2.15
--------- --------- --------- --------- ---------
Total from investment operations .10 2.82 1.75 4.04 2.30
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.19) (.51) -- (.36) --
In excess of investment income--net -- -- -- (.13) --
Realized gain on investments--net (2.53) (3.04) (2.91) (2.18) (1.04)
--------- --------- --------- --------- ---------
Total dividends and distributions (2.72) (3.55) (2.91) (2.67) (1.04)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 12.31 $ 14.93 $ 15.66 $ 16.82 $ 15.45
========= ========= ========= ========= =========
Total Investment Based on net asset value per share .98%+++ 21.97% 12.56% 30.81% 17.55%
Return:** ========= ========= ========= ========= =========
Ratios to Average Expenses 2.01%* 2.01% 2.04% 2.08% 2.15%
Net Assets: ========= ========= ========= ========= =========
Investment income--net 1.05%* .67% 1.18% .43% 1.04%
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 46,964 $ 52,742 $ 51,671 $ 22,260 $ 15,917
Data: ========= ========= ========= ========= =========
Portfolio turnover 68.18% 61.12% 78.75% 92.65% 92.34%
========= ========= ========= ========= =========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
Class D++
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 17.07 $ 17.39 $ 18.35 $ 16.57 $ 15.02
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .14 .24 .36 .20 .28
Realized and unrealized gain on investments
and foreign currency transactions--net .04 3.08 1.72 4.31 2.31
--------- --------- --------- --------- ---------
Total from investment operations .18 3.32 2.08 4.51 2.59
--------- --------- --------- --------- ---------
Less dividends and distributions:
Investment income--net (.31) (.60) (.08) (.41) --
In excess of investment income--net -- -- -- (.14) --
Realized gain on investments--net (2.53) (3.04) (2.96) (2.18) (1.04)
--------- --------- --------- --------- ---------
Total dividends and distributions (2.84) (3.64) (3.04) (2.73) (1.04)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 14.41 $ 17.07 $ 17.39 $ 18.35 $ 16.57
========= ========= ========= ========= =========
Total Investment Based on net asset value per share 1.39%+++ 22.89% 13.49% 31.84% 18.57%
Return:** ========= ========= ========= ========= =========
Ratios to Average Expenses 1.23%* 1.22% 1.25% 1.28% 1.34%
Net Assets: ========= ========= ========= ========= =========
Investment income--net 1.85%* 1.48% 2.01% 1.21% 1.83%
========= ========= ========= ========= =========
Supplemental Net assets, end of period (in thousands) $ 337,534 $ 363,422 $ 316,287 $ 150,474 $ 114,020
Data: ========= ========= ========= ========= =========
Portfolio turnover 68.18% 61.12% 78.75% 92.65% 92.34%
========= ========= ========= ========= =========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch EuroFund
April 30, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch EuroFund (the "Fund") is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund's financial statements are prepared in
accordance with accounting principles generally accepted in the
United States of America, 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 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 Fund.
(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 Board of Trustees 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, including futures contracts and related options, are
stated at market value. Securities and assets for which market
quotations are not available are valued at fair value as determined
in good faith by or under the direction of the Fund's Board of
Trustees.
Merrill Lynch EuroFund
April 30, 2000
(b) 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.
(c) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies to increase or decrease the level of
risk to which the Fund is exposed more quickly and efficiently than
transactions in other types of instruments. 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 Fund 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 Fund's records. However, the effect on
operations is recorded from the date the Fund enters into such
contracts.
* Options--The Fund is authorized to write covered call options and
put options and purchase put and call options. When the Fund writes
an option, an amount equal to the premium received by the Fund 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 Fund enters into a closing
transaction), the Fund 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 exceeds the premium paid
or received).
Written and purchased options are non-income producing investments.
* Foreign currency options and futures--The Fund may also purchase
or sell listed or over-the-counter foreign currency options, foreign
currency futures and related options on foreign currency futures as
a short or long hedge against possible variations in foreign
exchange rates. Such transactions may be effected with respect to
hedges on non-US dollar denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated
to be purchased by the Fund.
(d) Income taxes--It is the Fund'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
Fund 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.
(f) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(g) Repurchase agreements--The Fund 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 Fund 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. If the counterparty defaults and
the fair value of the collateral declines, liquidation of the
collateral by the Fund may be delayed or limited.
(h) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund 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 Fund 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 Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee of .75% on an annual basis of
the average daily value of the Fund's net assets. MLAM has entered
into a Sub-Advisory Agreement with Merrill Lynch Asset Management
U.K., Ltd. ("MLAM U.K."), an affiliate of MLAM, pursuant to which
MLAM pays MLAM U.K. a fee computed at the rate of .15% of the
average daily net assets of the Fund for providing investment
advisory services to MLAM with respect to the Fund. For the six
months ended April 30, 2000, MLAM paid MLAM U.K. a fee of $1,208,283
pursuant to such agreement.
Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Company Act of 1940, the Fund
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
Maintenance Distribution
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 Fund. 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.
Merrill Lynch EuroFund
April 30, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
For the six months ended April 30, 2000, MLFD earned underwriting
discounts and direct commissions 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 $ 910 $ 8,012
Class D $6,959 $91,435
For the six months ended April 30, 2000, MLPF&S received contingent
deferred sales charges of $439,614 and $12,850 relating to
transactions in Class B and Class C Shares, respectively.
Furthermore, MLPF&S received contingent deferred sales charges of
$775 relating to transactions subject to front-end sales charge
waivers in Class D Shares.
In addition, MLPF&S received $10,288 in commissions on the execution
of portfolio security transactions for the Fund for the six months
ended April 30, 2000.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of MLAM, PSI, FDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 2000 were $903,721,780 and
$1,220,583,716, respectively.
Net realized gains (losses) for the six months ended April 30, 2000
and net unrealized losses as of April 30, 2000 were as follows:
Realized Unrealized
Gains (Losses) Losses
Long-term investments $ 154,958,401 $ (25,574,145)
Financial futures contracts (19,885,744) (3,937,393)
Options written (16,259,394) --
Options purchased -- (1,698,576)
Foreign currency transactions (31,910,384) (170,526)
-------------- -------------
Total $ 86,902,879 $ (31,380,640)
============== =============
Transactions in call options written for the six months ended April
30, 2000 were as follows:
Premiums
Par Value Received
Outstanding call options
written at beginning of period -- --
Options written $ 297,004 $ 740,682
Options exercised (297,004) (740,682)
---------- -----------
Outstanding call options
written at end of period $ -- $ --
========== ===========
Transactions in put options written for the six months ended April
30, 2000 were as follows:
Premiums
Par Value Received
Outstanding put options
written at beginning of period -- --
Options written $ 99,373 $17,000,076
Options exercised (99,373) (17,000,076)
---------- -----------
Outstanding put options
written at end of period $ -- $ --
========== ===========
As of April 30, 2000, net unrealized depreciation for Federal income
tax purposes aggregated $27,272,721, of which $101,744,354 related
to appreciated securities and $129,017,075 related to depreciated
securities. At April 30, 2000, the aggregate cost of investments,
including options purchased, for Federal income tax purposes was
$1,240,337,468.
4. Shares of Beneficial Interest:
Net decrease in net assets derived from beneficial interest
transactions was $39,492,088 and $133,919,709 for the six months
ended April 30, 2000 and for the year ended October 31, 1999,
respectively.
Transactions in shares of beneficial interest for each class were as
follows:
Class A Shares for the Six Months Dollar
Ended April 30, 2000 Shares Amount
Shares sold 4,882,055 $ 71,918,049
Shares issued to shareholders
in reinvestment of dividends
and distributions 5,713,176 81,698,419
------------- -------------
Total issued 10,595,231 153,616,468
Shares redeemed (15,202,090) (218,320,441)
------------- -------------
Net decrease (4,606,859) $ (64,703,973)
============= =============
Merrill Lynch EuroFund
April 30, 2000
Class A Shares for the Year Dollar
Ended October 31, 1999 Shares Amount
Shares sold 12,500,587 $ 203,500,820
Shares issued to shareholders
in reinvestment of dividends
and distributions 6,134,572 89,258,042
------------- -------------
Total issued 18,635,159 292,758,862
Shares redeemed (25,172,731) (425,974,797)
------------- -------------
Net decrease (6,537,572) $(133,215,935)
============= =============
Class B Shares for the Six Months Dollar
Ended April 30, 2000 Shares Amount
Shares sold 4,517,056 $ 58,340,765
Shares issued to shareholders
in reinvestment of dividends
and distributions 9,022,003 111,602,182
------------- -------------
Total issued 13,539,059 169,942,947
Shares redeemed (11,929,276) (152,322,250)
Automatic conversion of
shares (1,994,213) (25,370,076)
------------- -------------
Net decrease (384,430) $ (7,749,379)
============= =============
Class B Shares for the Year Dollar
Ended October 31, 1999 Shares Amount
Shares sold 8,946,659 $ 130,492,047
Shares issued to shareholders
in reinvestment of dividends
and distributions 11,666,062 150,492,545
------------- -------------
Total issued 20,612,721 280,984,592
Shares redeemed (18,891,195) (276,122,622)
Automatic conversion of
shares (3,400,262) (50,197,908)
------------- -------------
Net decrease (1,678,736) $ (45,335,938)
============= =============
Class C Shares for the Six Months Dollar
Ended April 30, 2000 Shares Amount
Shares sold 1,114,969 $ 13,995,151
Shares issued to shareholders
in reinvestment of dividends
and distributions 691,420 8,393,845
------------- -------------
Total issued 1,806,389 22,388,996
Shares redeemed (1,523,385) (19,116,527)
------------- -------------
Net increase 283,004 $ 3,272,469
============= =============
Class C Shares for the Year Dollar
Ended October 31, 1999 Shares Amount
Shares sold 2,589,720 $ 37,332,059
Shares issued to shareholders
in reinvestment of dividends
and distributions 823,710 10,469,359
------------- -------------
Total issued 3,413,430 47,801,418
Shares redeemed (3,180,422) (45,800,142)
------------- -------------
Net increase 233,008 $ 2,001,276
============= =============
Class D Shares for the Six Months Dollar
Ended April 30, 2000 Shares Amount
Shares sold 1,756,761 $ 26,388,111
Automatic conversion of
shares 1,743,766 25,370,076
Shares issued to shareholders
in reinvestment of dividends
and distributions 3,649,408 51,712,108
------------- -------------
Total issued 7,149,935 103,470,295
Shares redeemed (5,010,232) (73,781,500)
------------- -------------
Net increase 2,139,703 $ 29,688,795
============= =============
Class D Shares for the Year Dollar
Ended October 31, 1999 Shares Amount
Shares sold 3,533,874 $ 57,534,783
Automatic conversion of
shares 3,034,965 50,197,908
Shares issued to shareholders
in reinvestment of dividends
and distributions 3,801,451 54,893,228
------------- -------------
Total issued 10,370,290 162,625,919
Shares redeemed (7,273,858) (119,995,031)
------------- -------------
Net increase 3,096,432 $ 42,630,888
============= =============
5. Commitments:
At April 30, 2000, the Fund had outstanding foreign exchange
contracts under which it had agreed to purchase and sell foreign
currency aggregating approximately $12,362,000 and $12,270,000,
respectively.
