MERRILL LYNCH
GLOBAL VALUE
FUND, INC.
FUND LOGO
Annual Report
December 31, 1999
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
Global Value Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH GLOBAL VALUE FUND, INC.
Worldwide
Investments
As of 12/31/99
(unaudited)
Percent of
Ten Largest Industries Net Assets
Electronic Components & Instruments 15.3%
Utilities--Electric & Gas 12.8
Telecommunications 14.4
Appliances & Household Durables 9.0
Food & Household Products 6.9
Banking 6.6
Financial Services 6.0
Insurance 5.6
Industrial Components 4.6
Data Processing &Reproduction 2.9
Country of Percent of
Ten Largest Holdings Origin Net Assets
The AES Corporation United States 7.2%
Lattice Semiconductor
Corporation United States 6.9
Murata Manufacturing
Company, Ltd. Japan 4.5
Cadbury Schweppes PLC United Kingdom 3.9
Corning Incorporated United States 3.9
Sony Corporation Japan 3.7
BCE Inc. (USRegistered
Shares) Canada 3.6
Gilat Satellite Networks Ltd. United States 3.3
The Furukawa Electric
Co., Ltd. Japan 3.2
Berkshire Hathaway Inc.
(Class A) United States 3.1
Merrill Lynch Global Value Fund, Inc., December 31, 1999
DEAR SHAREHOLDER
Fiscal Year in Review
Merrill Lynch Global Value Fund, Inc. had a very strong December
quarter, thereby lifting its returns for the fiscal year ended
December 31, 1999 to reasonable absolute--but not relative--levels.
For the 12 months ended December 31, 1999, the Fund's Class A, Class
B, Class C and Class D Shares had total returns of +10.44%, +9.29%,
+9.29% and +10.23%, respectively. Despite its strong outperformance
relative to the unmanaged MSCI World Index for the December quarter
(+19.67% for the Fund's Class A Shares compared to +16.87 for the
Index), these fiscal year returns were below the +24.93% Index
return for the same period. (Fund results do not reflect sales
charges, and would be lower if sales charges were included. Complete
performance information can be found on pages 4--6 of this report to
shareholders.)
The Fund's underperformance relative to the MSCI World Index for the
fiscal year is attributable in part to its investment focus on
value. As we have often discussed in previous reports to
shareholders, ours is not a traditional "value" fund, since we do
not invest exclusively in low price/earnings or price/book value
stocks. Nevertheless, we cannot comfortably own many of the growth
stocks that drove stock market performance in 1999.
We recognize that companies such as Cisco Systems, Inc., Oracle
Corporation and Sun Microsystems, Inc. are highly profitable, fast-
growing companies. More important, they operate in businesses that
have the prospect of continued fast growth--with growth likely to be
much faster than previously had been thought. Share prices of these
companies seemed expensive at the beginning of 1999, and they have
appreciated dramatically. As a result, even with the fundamentals of
these companies improving, their shares may have appreciated much
more than reflective of the fundamentals. So though we believe that
many of the growth companies that have been powering stock market
returns are accreting value at an increasing rate, they remain too
expensive for us.
Over the past two years, it is clear that "growth" has outperformed
"value." The MSCI World Index is made up of two components: the MSCI
World Value Index and the MSCI World Growth Index. In 1998, the MSCI
Growth Index was ahead by 32.2%, the MSCI Value Index was up by
13.7%, and the MSCI World Index (which is comprised of both value
and growth stocks) was ahead by 24.3%. In 1999, we witnessed a
similar disparity with the MSCI World Growth Index up 32%, the MSCI
World Value Index up 15%, and the MSCI World Index up by 25%.
Although the Fund kept pace with the unmanaged MSCI World Index in
1998, it significantly lagged the Index performance in 1999. In
contrast, the Fund significantly outperformed the Index in 1997,
when its Class A Shares had a +24.01% return compared to a +15.76%
for the Index. In 1997, growth stocks and value stocks performed
similarly.
If growth stocks continue to outperform value stocks as they did in
1998 and 1999, it is unlikely that Merrill Lynch Global Value Fund,
Inc. will outperform the MSCI World Index. Therefore, if this were
the case, there would be no investment basis for a value fund such
as ours. However, in our view, over longer periods of time growth
and value stocks will tend to perform in line with each other. More
important, the extent to which growth stocks have outperformed value
stocks over the past two years is unprecedented to our knowledge. So
although we do not hold that value stocks will necessarily
outperform value stocks in 2000, we do believe that over the longer
term the significant performance disparity between growth and value
will diminish.
Focus on Two Large Positions
We have two large positions that shareholders should be aware of
since their price movements could cause the Fund's net asset values
to be volatile. The AES Corporation and Lattice Semiconductor
Corporation are positions that each make up approximately 7% of the
portfolio, and we may let them build up more if their prices
appreciate.
In our view, even after strong recent performances, these stocks are
reasonably valued and the companies have attractive characteristics.
They both provide either a useful service or produce desirable
products, and they have engaged managements that we believe are
trustworthy. Furthermore, both companies are growing at good rates,
particularly in relationship to their share valuations.
Investment Outlook
We continue to witness a bifurcated stock market. Companies with
high growth prospects in exciting businesses often trade at high
double-digit--or even triple-digit--multiples of revenues. Yet
companies in slower growth, more mundane businesses will trade at
single-digit multiples of earnings, especially after announcing even
a slightly negative development. In particular, financial and
consumer goods companies, among others, are largely valued as if
they were inferior businesses and will remain under pressure. In
contrast, companies, for example, in the optical networking business
are valued as though their sales and profits will be enormously
larger and faster growing than people would have thought possible
not so very long ago. In our view, some of these optical networking
companies will be very successful and some will be colossal
failures. The same can be said for Internet companies and various
other highly valued technology companies.
We expect that most companies in more traditional businesses will
"muddle through" this period. Hopefully, we will be able to invest
in reasonably priced companies that will do much more than survive
and the Fund can participate in both their earnings growth and
upward revaluations.
In Conclusion
We thank you for your investment in Merrill Lynch Global Value Fund,
Inc., and we look forward to serving your financial needs throughout
the Fund's new fiscal year and beyond.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President
(Stephen I. Silverman)
Stephen I. Silverman
Senior Vice President and
Portfolio Manager
February 16, 2000
To reduce shareholder expenses, Merrill Lynch Global Value Fund,
Inc. will no longer be printing and mailing quarterly reports to
shareholders. We will continue to provide you with reports on a semi-
annual and annual basis.
Merrill Lynch Global Value Fund, Inc., December 31, 1999
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.
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an investment
in the Morgan Stanley Capital International World Index. Beginning and
ending values are:
11/01/96** 12/99
ML Global Value Fund, Inc.++--
Class A Shares* $ 9,475 $16,793
ML Global Value Fund, Inc.++--
Class B Shares* $10,000 $17,057
Morgan Stanley Capital International
World Index++++ $10,000 $18,679
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to growth of an investment
in the Morgan Stanley Capital International World Index. Beginning and
ending values are:
11/01/96** 12/99
ML Global Value Fund, Inc.++--
Class C Shares* $10,000 $17,155
ML Global Value Fund, Inc.++--
Class D Shares* $ 9,475 $16,664
Morgan Stanley Capital International
World Index++++ $10,000 $18,679
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Global Value Fund, Inc. invests primarily in equity securities
of issuers located in various foreign countries and the United
States.
++++This unmanaged market capitalization-weighted Index is comprised
of a representative sampling of large-, medium-, and small-
capitalization companies in 22 countries, including the United
States. The starting date for the Index in each of the graphs is
from 10/31/96.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/99 +10.44% + 4.64%
Inception (11/01/96) through 12/31/99 +19.83 +17.80
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/99 + 9.29% + 5.29%
Inception (11/01/96) through 12/31/99 +18.60 +18.38
*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 + 9.29% + 8.29%
Inception (11/01/96) through 12/31/99 +18.60 +18.60
*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 +10.23% + 4.45%
Inception (11/01/96) through 12/31/99 +19.54 +17.52
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Value Fund, Inc., December 31, 1999
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
3 Month 12 Month Since Inception
As of December 31, 1999 Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Value Fund, Inc. Class A Shares +19.67% +10.44% +77.24%
ML Global Value Fund, Inc. Class B Shares +19.34 + 9.29 +71.57
ML Global Value Fund, Inc. Class C Shares +19.34 + 9.29 +71.55
ML Global Value Fund, Inc. Class D Shares +19.56 +10.23 +75.89
*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 inception date is 11/01/96.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
NORTH Shares Percent of
AMERICA Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
Canada Telecommunications 1,100,000 BCE Inc. (US Registered Shares) $ 99,206,250 3.6%
Transportation-- 2,612,000 Canadian National Railway Company 68,728,250 2.5
Road & Rail
Total Investments in Canada 167,934,500 6.1
United States Appliances & 1,557,000 Maytag Corporation 74,736,000 2.7
Household Durables
Banking 1,928,200 Washington Mutual, Inc. 50,133,200 1.8
Electrical & 1,307,875 Honeywell International Inc. 75,448,039 2.7
Electronics
Electronic Components & 827,000 Corning Incorporated 106,631,313 3.9
Instruments 4,009,200 ++Lattice Semiconductor Corporation (b) 189,184,125 6.9
-------------- ------
295,815,438 10.8
Financial Services 1,109,800 The Chase Manhattan Corporation 86,217,587 3.1
1,266,750 Federal National Mortgage Association 79,092,703 2.9
-------------- ------
165,310,290 6.0
Health & Personal Care 1,547,700 Monsanto Company 55,136,812 2.0
Industrial Components 467,700 ++SPX Corporation 37,796,006 1.4
Insurance 1,546 ++Berkshire Hathaway Inc. (Class A) 86,730,600 3.1
Telecommunications 2,364,000 ECI Telecom Limited 74,761,500 2.7
1,069,900 GTE Corporation 75,494,819 2.8
768,200 ++Gilat Satellite Networks Ltd. 91,031,700 3.3
-------------- ------
241,288,019 8.8
Utilities-- 2,652,500 ++The AES Corporation 198,274,375 7.2
Electric & Gas 971,850 Columbia Energy Group 61,469,513 2.2
1,590,100 Unicom Corporation 53,268,350 1.9
-------------- ------
313,012,238 11.3
Total Investments in the United States 1,395,406,642 50.6
Total Investments in North America
(Cost--$1,263,268,931) 1,563,341,142 56.7
PACIFIC
BASIN
Australia Leisure & Tourism 8,877,054 Village Roadshow Limited 'A' (Preferred) 15,029,589 0.5
212,500 Village Roadshow Limited
(Convertible Preferred) (a) 7,650,000 0.3
-------------- ------
22,679,589 0.8
Real Estate 3,421,567 Lend Lease Corporation Limited 47,730,716 1.7
Total Investments in Australia 70,410,305 2.5
Japan Appliances & 2,560,000 Matsushita Electric Industrial
Household Durables Company, Ltd. 70,895,391 2.6
345,000 Sony Corporation 102,294,745 3.7
-------------- ------
173,190,136 6.3
Construction & Housing 1,079,602 Chudenko Corporation 16,406,908 0.6
769,000 Kinden Corporation 5,907,281 0.2
-------------- ------
22,314,189 0.8
Data Processing & 2,026,000 Canon, Inc. 80,492,808 2.9
Reproduction
Electronic Components 526,000 Murata Manufacturing Company, Ltd. 123,534,592 4.5
& Instruments
Industrial Components 5,900,000 The Furukawa Electric Co., Ltd. 89,490,165 3.2
Insurance 3,355,000 The Dai-Tokyo Fire and Marine
Insurance Co., Ltd. 13,690,527 0.5
765,000 The Nichido Fire & Marine
Insurance Co., Ltd. 4,401,801 0.1
4,304,000 The Sumitomo Marine & Fire
Insurance Co., Ltd. 26,534,103 1.0
2,073,000 The Tokio Marine & Fire
Insurance Co. Ltd. 24,241,462 0.9
-------------- ------
68,867,893 2.5
Machinery & Engineering 1,000,000 Toyoda Automatic Loom Works, Ltd. 20,892,455 0.8
Merchandising 167,000 Ito-Yokado Co., Ltd. 18,139,740 0.7
Total Investments in Japan 596,921,978 21.7
Total Investments in the Pacific Basin
(Cost--$394,680,746) 667,332,283 24.2
</TABLE>
Merrill Lynch Global Value Fund, Inc., December 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN Shares Percent of
EUROPE Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
Denmark Banking 574,700 Den Danske Bank Group $ 63,017,910 2.3%
Total Investments in Denmark 63,017,910 2.3
Germany Utilities-- 3,545,700 Bewag Aktiengesellschaft 41,060,979 1.5
Electric & Gas
Total Investments in Germany 41,060,979 1.5
Greece Telecommunications 1,667,010 Hellenic Telecommunications
Organization SA (OTE) 39,489,583 1.4
1,345,980 Hellenic Telecommunications
Organization SA (OTE) (ADR)* 16,067,636 0.6
Total Investments in Greece 55,557,219 2.0
Ireland Banking 5,980,000 Allied Irish Banks PLC 68,047,018 2.5
28,500 Allied Irish Banks PLC (ADR)* 602,063 0.0
Total Investments in Ireland 68,649,081 2.5
Switzerland Food & Household 44,600 Nestle SA (Registered Shares) 81,735,377 3.0
Products
Total Investments in Switzerland 81,735,377 3.0
United Business & 4,119,000 Railtrack Group PLC 69,148,454 2.5
Kingdom Public Services
Food & Household 17,757,400 Cadbury Schweppes PLC 107,203,342 3.9
Products
Total Investments in the United Kingdom 176,351,796 6.4
Total Investments in Western Europe
(Cost--$474,729,908) 486,372,362 17.7
SHORT-TERM Face
SECURITIES Amount Issue
Commercial Paper** $ 3,823,000 General Motors Acceptance Corp., 5%
due 1/03/2000 3,821,938 0.1
Total Investments in Short-Term Securities
(Cost--$3,821,938) 3,821,938 0.1
OPTIONS Nominal Value
PURCHASED Covered by Options
Currency Put 100,000,000 Japanese Yen, expiring June 2000 at YEN 123 110,000 0.0
Options Purchased 100,000,000 Japanese Yen, expiring June 2000 at YEN 124 47,000 0.0
300,000,000 Japanese Yen, expiring June 2000 at YEN 124 129,000 0.0
Total Options Purchased (Cost--$12,595,000) 286,000 0.0
Total Investments (Cost--$2,149,096,523) 2,721,153,725 98.7
Other Assets Less Liabilities 35,771,231 1.3
-------------- ------
Net Assets $2,756,924,956 100.0%
============== ======
++Non-income producing security.
*American Depositary Receipts (ADR).
**Commercial Paper is traded on a discount basis; the interest rate
shown reflects the discount rate paid at the time of purchase by the
Fund.
(a)The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
(b)Investments in companies 5% or more of whose outstanding
securities are held by the Fund (such companies are defined as
"Affiliated Companies" in section 2(a)(3) of the Investment Company
Act of 1940) are as follows:
Net Share Net Dividend
Industry Affiliate Activity Cost Income
Electronic Lattice 1,938,500 $(3,868,599) ++
Components & Semiconductor
Instruments Corporation
++Non-income producing security.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Value Fund, Inc., December 31, 1999
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of December 31, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$2,136,501,523) $2,720,867,725
Put options purchased, at value (cost--$12,595,000) 286,000
Foreign cash 17,429,680
Receivables:
Securities sold $ 23,850,093
Dividends 2,806,390
Capital shares sold 2,443,502 29,099,985
--------------
Deferred organization expenses 37,375
Prepaid registration fees and other assets 150,479
--------------
Total assets 2,767,871,244
--------------
Liabilities: Payables:
Capital shares redeemed 5,842,246
Investment adviser 1,888,283
Distributor 1,818,613 9,549,142
--------------
Accrued expenses and other liabilities 1,397,146
--------------
Total liabilities 10,946,288
--------------
Net Assets: Net assets $2,756,924,956
==============
Net Assets Class A Shares of Common Stock, $.10 par value, 100,000,000
Consist of: shares authorized $ 1,328,122
Class B Shares of Common Stock, $.10 par value, 300,000,000
shares authorized 12,539,191
Class C Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 2,234,971
Class D Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 2,853,179
Paid-in capital in excess of par 2,106,474,749
Undistributed investment income--net 1,466,471
Undistributed realized capital gains on investments and
foreign currency transactions--net 58,030,191
Unrealized appreciation on investments and foreign
currency transactions--net 571,998,082
--------------
Net assets $2,756,924,956
==============
Net Asset Class A--Based on net assets of $195,510,520 and 13,281,215
Value: shares outstanding $ 14.72
==============
Class B--Based on net assets of $1,818,746,476 and 125,391,911
shares outstanding $ 14.50
==============
Class C--Based on net assets of $324,169,335 and 22,349,705
shares outstanding $ 14.50
==============
Class D--Based on net assets of $418,498,625 and 28,531,791
shares outstanding $ 14.67
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended December 31, 1999
<S> <S> <C> <C>
Investment Dividends (net of $2,087,675 foreign withholding tax) $ 35,926,990
Income: Interest and discount earned 4,045,287
------------
Total income 39,972,277
------------
Expenses: Investment advisory fees $ 21,139,630
Account maintenance and distribution fees--Class B 18,802,926
Account maintenance and distribution fees--Class C 3,341,948
Transfer agent fees--Class B 2,287,826
Account maintenance fees--Class D 1,024,409
Custodian fees 705,212
Transfer agent fees--Class C 421,286
Transfer agent fees--Class D 418,087
Accounting services 302,370
Printing and shareholder reports 273,769
Transfer agent fees--Class A 197,720
Registration fees 178,575
Professional fees 138,020
Directors' fees and expenses 45,057
Pricing fees 31,768
Amortization of organization expenses 20,386
Other 43,283
------------
Total expenses 49,372,272
------------
Investment loss--net (9,399,995)
------------
Realized & Realized gain from:
Unrealized Gain Investments--net 58,030,296
(Loss) on Foreign currency transactions--net 7,028,326 65,058,622
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net 172,411,036
Foreign currency transactions--net (1,745,387) 170,665,649
------------ ------------
Net realized and unrealized gain on investments and
foreign currency transactions 235,724,271
------------
Net Increase in Net Assets Resulting from Operations $226,324,276
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Value Fund, Inc., December 31, 1999
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended
December 31,
Increase (Decrease) in Net Assets: 1999 1998
<S> <S> <C> <C>
Operations: Investment income (loss)--net $ (9,399,995) $ 14,662,644
Realized gain on investments and foreign
currency transactions--net 65,058,622 273,114,836
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 170,665,649 224,291,590
-------------- --------------
Net increase in net assets resulting from operations 226,324,276 512,069,070
-------------- --------------
Dividends & Investment income--net:
Distributions to Class A (526,085) (1,613,920)
Shareholders: Class B (5,305,144) (9,798,677)
Class C (941,587) (1,789,955)
Class D (1,149,043) (3,260,316)
In excess of investment income--net:
Class A -- (2,417,667)
Class B -- (14,678,505)
Class C -- (2,681,369)
Class D -- (4,883,982)
Realized gain on investments--net:
Class A (4,329,355) (15,004,582)
Class B (43,828,286) (154,619,783)
Class C (7,777,614) (28,383,994)
Class D (9,465,496) (32,551,670)
-------------- --------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (73,322,610) (271,684,420)
-------------- --------------
Capital Share Net increase (decrease) in net assets derived from
Transactions: capital share transactions (377,884,006) 937,922,226
-------------- --------------
Net Assets: Total increase (decrease) in net assets (224,882,340) 1,178,306,876
Beginning of year 2,981,807,296 1,803,500,420
-------------- --------------
End of year* $2,756,924,956 $2,981,807,296
============== ==============
<FN>
*Undistributed investment income--net $ 1,466,471 $ 11,760,176
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A++++
For the For the
The following per share data and ratios have been derived For the Period Year
from information provided in the financial statements. Year Ended Nov. 1, 1997 Ended
December 31, to Dec. 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1997++
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period. $ 13.67 $ 12.01 $ 11.83 $ 10.00
Operating ---------- ---------- ---------- ----------
Performance: Investment income--net .07 .18 .01 .17
Realized and unrealized gain on
investments and foreign currency
transactions--net 1.32 3.00 .72 1.71
---------- ---------- ---------- ----------
Total from investment operations 1.39 3.18 .73 1.88
---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.04) (.14) (.11) (.05)
In excess of investment income--net -- (.20) -- --
Realized gain on investments--net (.30) (1.18) (.44) --
---------- ---------- ---------- ----------
Total dividends and distributions (.34) (1.52) (.55) (.05)
---------- ---------- ---------- ----------
Net asset value, end of period $ 14.72 $ 13.67 $ 12.01 $ 11.83
========== ========== ========== ==========
Total Investment Based on net asset value per share 10.44% 27.10% 6.19%+++ 18.91%
Return:** ========== ========== ========== ==========
Ratios to Average Expenses .91% .90% .96%* .97%
Net Assets: ========== ========== ========== ==========
Investment income--net .51% 1.32% .54%* 1.88%
========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 195,511 $ 202,980 $ 63,075 $ 53,776
Data: ========== ========== ========== ==========
Portfolio turnover 70.93% 44.94% 24.49% 77.65%
========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++The Fund commenced operations on November 1, 1996.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Value Fund, Inc., December 31, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class B++++
For the For the
The following per share data and ratios have been derived For the Period Year
from information provided in the financial statements. Year Ended Nov. 1, 1997 Ended
December 31, to Dec. 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1997++
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period. $ 13.61 $ 11.97 $ 11.72 $ 10.00
Operating ---------- ---------- ---------- ----------
Performance: Investment income (loss)--net (.07) .06 (.01) .09
Realized and unrealized gain on
investments and foreign currency
transactions--net 1.30 2.96 .73 1.67
---------- ---------- ---------- ----------
Total from investment operations 1.23 3.02 .72 1.76
---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.04) (.08) (.03) (.04)
In excess of investment income--net -- (.12) -- --
Realized gain on investments--net (.30) (1.18) (.44) --
---------- ---------- ---------- ----------
Total dividends and distributions (.34) (1.38) (.47) (.04)
---------- ---------- ---------- ----------
Net asset value, end of period $ 14.50 $ 13.61 $ 11.97 $ 11.72
========== ========== ========== ==========
Total Investment Based on net asset value per share 9.29% 25.76% 6.14%+++ 17.62%
Return:** ========== ========== ========== ==========
Ratios to Average Expenses 1.93% 1.92% 1.98%* 1.99%
Net Assets: ========== ========== ========== ==========
Investment income (loss)--net (.51%) .44% (.49%)* .84%
========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $1,818,746 $1,988,580 $1,251,956 $1,179,125
Data: ========== ========== ========== ==========
Portfolio turnover 70.93% 44.94% 24.49% 77.65%
========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++The Fund commenced operations on November 1, 1996.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class C++++
For the For the
The following per share data and ratios have been derived For the Period Year
from information provided in the financial statements. Year Ended Nov. 1, 1997 Ended
December 31, to Dec. 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1997++
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period. $ 13.61 $ 11.97 $ 11.72 $ 10.00
Operating ---------- ---------- ---------- ----------
Performance: Investment income (loss)--net (.07) .06 (.01) .09
Realized and unrealized gain on
investments and foreign currency
transactions--net 1.30 2.96 .73 1.67
---------- ---------- ---------- ----------
Total from investment operations 1.23 3.02 .72 1.76
---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.04) (.08) (.03) (.04)
In excess of investment income--net -- (.12) -- --
Realized gain on investments--net (.30) (1.18) (.44) --
---------- ---------- ---------- ----------
Total dividends and distributions (.34) (1.38) (.47) (.04)
---------- ---------- ---------- ----------
Net asset value, end of period $ 14.50 $ 13.61 $ 11.97 $ 11.72
========== ========== ========== ==========
Total Investment Based on net asset value per share 9.29% 25.73% 6.14%+++ 17.62%
Return:** ========== ========== ========== ==========
Ratios to Average Expenses 1.94% 1.92% 1.98%* 1.99%
Net Assets: ========== ========== ========== ==========
Investment income (loss)--net (.52%) .43% (.49%)* .83%
========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 324,169 $ 363,134 $ 229,601 $ 217,341
Data: ========== ========== ========== ==========
Portfolio turnover 70.93% 44.94% 24.49% 77.65%
========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++The Fund commenced operations on November 1, 1996.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Value Fund, Inc., December 31, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class D++++
For the For the
The following per share data and ratios have been derived For the Period Year
from information provided in the financial statements. Year Ended Nov. 1, 1997 Ended
December 31, to Dec. 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1997++
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period. $ 13.65 $ 12.00 $ 11.80 $ 10.00
Operating ---------- ---------- ---------- ----------
Performance: Investment income--net .03 .16 .01 .18
Realized and unrealized gain on
investments and foreign currency
transactions--net 1.33 2.98 .72 1.67
---------- ---------- ---------- ----------
Total from investment operations 1.36 3.14 .73 1.85
---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.04) (.12) (.09) (.05)
In excess of investment income--net -- (.19) -- --
Realized gain on investments--net (.30) (1.18) (.44) --
---------- ---------- ---------- ----------
Total dividends and distributions (.34) (1.49) (.53) (.05)
---------- ---------- ---------- ----------
Net asset value, end of period $ 14.67 $ 13.65 $ 12.00 $ 11.80
========== ========== ========== ==========
Total Investment Based on net asset value per share 10.23% 26.72% 6.20%+++ 18.56%
Return:** ========== ========== ========== ==========
Ratios to Average Expenses 1.16% 1.15% 1.21%* 1.22%
Net Assets: ========== ========== ========== ==========
Investment income--net .25% 1.19% .28%* 1.62%
========== ========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 418,499 $ 427,113 $ 258,868 $ 237,791
Data: ========== ========== ========== ==========
Portfolio turnover 70.93% 44.94% 24.49% 77.65%
========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++The Fund commenced operations on November 1, 1996.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Value Fund, Inc. (the "Fund") 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. 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 securities--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 Directors 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
financial futures contracts and related options, are stated at
market value. Securities and assets for which market quotations are
not readily available are valued at their fair value as determined
in good faith by or under the direction of the Fund's Board of
Directors.
(b) 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 additions to such 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.
(c) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(d) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the equity 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.
* Options--The Fund is authorized to write and purchase call and put
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.
* 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.
* 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.
Merrill Lynch Global Value Fund, Inc., December 31, 1999
NOTES TO FINANCIAL STATEMENTS (continued)
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.
(e) 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.
(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
Fund has determined the ex-dividend date. Interest income (including
amortization of discount) is recognized on the accrual basis.
Realized gains and losses on security transactions are determined on
the identified cost basis.
(g) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a period not exceeding five years. Prepaid
registration fees are charged to expense as the related shares are
issued.
(h) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates. Distributions in
excess of net investment income are due primarily to differing tax
treatments for foreign currency transactions and post-October
losses.
(i) Reclassification--Generally accepted accounting principles
require that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting.
Accordingly, current year's permanent book/tax differences of
$7,028,149 have been reclassified between undistributed net realized
capital gains and undistributed net investment income. These
reclassifications have no effect on net assets or net asset values
per share.
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.
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.
For the year ended December 31, 1999, 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 $ 220 $ 3,764
Class D $24,624 $322,665
For the year ended December 31, 1999, MLPF&S received contingent
deferred sales charges of $4,816,873 and $110,169 relating to
transactions in Class B and Class C Shares, respectively.
Furthermore, MLPF&S received contingent deferred sales charges of
$4,102 relating to transactions subject to front-end sales charge
waivers in Class D Shares.
In addition, MLPF&S received $538,795 in commissions on the
execution of portfolio security transactions for the Fund for the
year ended December 31, 1999.
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 directors of the Fund 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 year ended December 31, 1999 were $1,919,046,304 and
$2,316,903,824, respectively.
Net realized gains (losses) for the year ended December 31, 1999 and
net unrealized gains (losses) as of December 31, 1999 were as
follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Investments:
Long-term $ 96,369,310 $584,366,202
Options written (38,339,014) --
------------ ------------
Total investments 58,030,296 584,366,202
------------ ------------
Currency transactions:
Options purchased (7,604,352) (12,309,000)
Foreign currency transactions 424,355 (59,120)
Forward foreign exchange
contracts 14,208,323 --
------------ ------------
Total currency transactions 7,028,326 (12,368,120)
------------ ------------
Total $ 65,058,622 $571,998,082
============ ============
Transactions in call options written for the year ended December 31,
1999 were as follows:
Nominal Value
Covered by Premiums
Written Options Received
Outstanding call options written,
beginning of year 3,480,502 $ 10,137,312
Options written 2,329,700 5,928,234
Options closed (2,361,500) (7,686,683)
Options expired (3,448,702) (8,378,863)
------------ ------------
Outstanding call options written,
end of year -- $ --
============ ============
As of December 31, 1999, net unrealized appreciation for Federal
income tax purposes aggregated $584,366,202, of which $737,254,776
related to appreciated securities and $152,888,574 related to
depreciated securities. The aggregate cost of investments at
December 31, 1999 for Federal income tax purposes was
$2,136,501,523.
4. Capital Share Transactions:
Net increase (decrease) in net assets derived from capital share
transactions was $(377,884,006) and $937,922,226 for the years ended
December 31, 1999 and December 31, 1998, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 6,381,325 $ 84,980,896
Shares issued to shareholders in
reinvestment of dividends and
distributions 200,732 2,645,651
------------ -------------
Total issued 6,582,057 87,626,547
Shares redeemed (8,149,883) (108,186,635)
------------ -------------
Net decrease (1,567,826) $ (20,560,088)
============ =============
Class A Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 11,594,216 $ 157,632,070
Shares issued to shareholders in
reinvestment of dividends and
distributions 700,153 9,347,636
------------ --------------
Total issued 12,294,369 166,979,706
Shares redeemed (2,696,436) (36,354,264)
------------ --------------
Net increase 9,597,933 $ 130,625,442
============ ==============
Merrill Lynch Global Value Fund, Inc., December 31, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
Class B Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 23,913,192 $ 315,765,908
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,270,641 42,681,877
------------ --------------
Total issued 27,183,833 358,447,785
Automatic conversion of shares (2,089,262) (27,350,251)
Shares redeemed (45,818,424) (597,428,034)
------------ --------------
Net decrease (20,723,853) $ (266,330,500)
============ ==============
Class B Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 52,086,564 $ 711,124,670
Shares issued to shareholders in
reinvestment of dividends and
distributions 11,614,251 154,732,397
------------ --------------
Total issued 63,700,815 865,857,067
Automatic conversion of shares (837,665) (11,201,223)
Shares redeemed (21,371,519) (284,576,009)
------------ --------------
Net increase 41,491,631 $ 570,079,835
============ ==============
Class C Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 4,283,140 $ 56,413,432
Shares issued to shareholders in
reinvestment of dividends and
distributions 579,612 7,563,937
------------ --------------
Total issued 4,862,752 63,977,369
Shares redeemed (9,194,005) (119,834,496)
------------ --------------
Net decrease (4,331,253) $ (55,857,127)
============ ==============
Class C Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 10,104,124 $ 138,079,120
Shares issued to shareholders in
reinvestment of dividends and
distributions 2,149,018 28,640,687
------------ --------------
Total issued 12,253,142 166,719,807
Shares redeemed (4,761,365) (63,354,025)
------------ --------------
Net increase 7,491,777 $ 103,365,782
============ ==============
Class D Shares for the Year Dollar
Ended December 31, 1999 Shares Amount
Shares sold 5,587,713 $ 74,242,316
Automatic conversion of shares 2,074,596 27,350,251
Shares issued to shareholders in
reinvestment of dividends and
distributions 711,495 9,349,055
------------ --------------
Total issued 8,373,804 110,941,622
Shares redeemed (11,121,027) (146,077,913)
------------ --------------
Net decrease (2,747,223) $ (35,136,291)
============ ==============
Class D Shares for the Year Dollar
Ended December 31, 1998 Shares Amount
Shares sold 12,280,913 $ 167,684,549
Automatic conversion of shares 832,238 11,201,223
Shares issued to shareholders in
reinvestment of dividends and
distributions 2,707,655 36,169,410
------------ --------------
Total issued 15,820,806 215,055,182
Shares redeemed (6,112,408) (81,204,015)
------------ --------------
Net increase 9,708,398 $ 133,851,167
============ ==============
5. Commitments:
At December 31, 1999, the Fund had entered into foreign exchange
contracts under which it had agreed to sell various foreign
currencies with an approximate value of $34,836,000.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Global Value Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Global Value Fund, Inc. as of December 31, 1999, the related
statements of operations for the year then ended and changes in net
assets for each of the years in the two-year period then ended, and
the financial highlights for each of the years in the two-year
period then ended and the period November 1, 1997 to December 31,
1997 and for the year ended October 31, 1997. These financial
statements and the financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion
on these financial statements and the financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at December
31, 1999 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Global Value Fund, Inc. as of December 31, 1999, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
February 18, 2000
</AUDIT-REPORT>
Merrill Lynch Global Value Fund, Inc., December 31, 1999
IMPORTANT TAX INFORMATION (unaudited)
Of the ordinary income distribution paid by Merrill Lynch Global
Value Fund, Inc. to shareholders of record on July 7, 1999, 10.89%
qualifies for the dividends received deduction for corporations.
Additionally, the Fund paid a long-term capital gains distribution
of $.228601 per share to shareholders of record on July 7, 1999.
Please retain this information for your records.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Charles C. Reilly, Director
Roscoe Sudarth, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Robert C. Doll, Senior Vice President
Stephen I. Silverman, Senior Vice President and
Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Lori A. Martin, Secretary
Donald Cecil and Edward H. Meyer, Directors of Merrill Lynch Global
Value Fund, Inc. have recently retired. The Fund's Board of
Directors wishes Mr. Cecil and Mr. Meyer well in their retirements.
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
