MERRILL LYNCH
GLOBAL GROWTH
FUND, INC.
FUND LOGO
Quarterly Report
May 31, 1998
Officers and Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Fred G. Weiss, Director
Terry K. Glenn, Executive Vice President
Lawrence R. Fuller, Senior Vice President
and Portfolio Manager
Norman R. Harvey, Senior Vice President
Donald C. Burke, Vice President
Gerald M. Richard, Treasurer
Philip M. Mandel, Secretary
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
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 Growth Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH GLOBAL GROWTH FUND, INC.
Worldwide
Investments as of
May 31, 1998
Percent of
Ten Largest Industries Net Assets
Banking & Financial 18.3%
Insurance 11.0
Pharmaceuticals 7.3
Telecommunications 6.6
Communications Equipment 5.9
Retail Stores 5.4
Software--Computer 5.0
Electrical Equipment 2.8
Electronics 2.7
Information Processing 2.6
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
SAP AG (Systeme, Anwendungen,
Produkte in der Datenverar-
beitung)(Preferred) Germany 3.3%
Pfizer, Inc. United States 2.3
Cisco Systems, Inc. United States 2.0
AEGON N.V. Netherlands 1.8
General Electric Company United States 1.7
Deutsche Bank AG Germany 1.7
Cap Gemini S.A. France 1.6
Dresdner Bank AG Germany 1.6
Novartis AG (Registered Shares) Switzerland 1.6
National Westminster Bank PLC
(Ordinary) United Kingdom 1.5
Merrill Lynch Global Growth Fund, Inc., May 31, 1998
DEAR SHAREHOLDER
For the quarter ended May 31, 1998, Merrill Lynch Global Growth
Fund, Inc.'s Class A, Class B, Class C and Class D Shares had total
returns of +7.75%, +7.51%, +7.51% and +7.67%, respectively.
(Investment results shown do not reflect sales charges, and would be
lower if sales charges were included. Complete performance
information can be found on pages 4 and 5 of this report to
shareholders.)
The Fund's performance reflects a continuation of our overweighting
of banking and finance, insurance and financial service companies in
Western Europe and our limiting the Fund's weighting in Asian stock
markets, including Japan. In addition, we reduced the portfolio's
weighting in telecommunications equipment companies, particularly
those with a focus on wireless communications infrastructure. The
operating results of these companies were not influenced by the
declines in consumer spending and business activity in the
developing Asian economies during the fourth quarter of 1997.
However, we were concerned that these companies could still
experience a downturn since real business conditions in several
major Asian countries have continued to deteriorate thus far in
1998, along with the social and political environments.
During the May quarter, seven of the Fund's largest equity holdings
had significant total returns. Also, more than 45% of the companies
in the Fund's portfolio provided generous total returns. Industry
sectors that were significant contributors to the Fund's positive
returns, in declining order of importance, were banking and
financial, insurance, pharmaceuticals, retail stores, communications
equipment, computer software, telecommunications, electrical
equipment, computers and information processing. (See page 1 of this
report to shareholders for complete listings of the Fund's Ten
Largest Industries and Ten Largest Equity Holdings.)
The Environment
The world's developing stock markets appear to have entered a period
of turbulence similar to the volatility experienced at the inception
of Merrill Lynch Global Growth Fund, Inc. in early November 1997.
During the May quarter, we remained focused on equity investments in
large-capitalization growth companies in developed equity markets.
Almost one-third of the Fund's portfolio was invested in US-based
companies at May quarter-end. The United Kingdom was the next
largest country weighting at 17.8% of net assets, followed by
Germany and France at 14.3% and 7.0% of net assets, respectively.
The exposure of the portfolio to equity investments in Japan, which
comprised less than 7% of the Fund's net assets, was focused
primarily on Japan's largest global exporters such as Honda Motor
Co., Ltd., Toyota Motor Corporation, Sony Corporation and Fuji Photo
Film Co., Ltd. The decline in the value of the Japanese yen has
created a significant comparative pricing advantage for the products
of these companies in the United States and Western Europe. This has
already shown up in market share gains by these companies. We expect
this situation to continue for some time.
We believe that real rates of growth in consumer spending and
business activity on a worldwide basis are slowing. With respect to
consumer spending, the best growth markets appear to be the United
States, followed by France and Germany. The latest business reports
from the United Kingdom show a slowing in the rate of growth of
consumer spending. In the developing countries of Asia, consumer
spending seems to be continuing to contract in absolute terms.
Consequently, we believe that there is a relatively low probability
that the central banks of the United States, the United Kingdom and
Germany are going to tighten monetary policy over the foreseeable
future. We anticipate that the rate of real growth in the United
States will moderate from the rapid pace of the first quarter of
1998. In addition, we expect real consumer spending in the United
States on household goods and furniture, computers and entertainment
goods, entertainment services and healthcare to continue to grow at
relatively rapid rates during the remainder of 1998.
In our view, the corporations in the United States and Europe that
are most likely to exhibit declines in earnings related to the
recessions in Asia are the same companies that we would expect to
experience market share erosion as a result of competition from
manufactured goods from the large global corporations in Japan and
the other Pacific Rim countries. Therefore, we expect price
inflation to remain moderate in the United States, the United
Kingdom and Europe, and that interest rates will remain stable or
decline over the remainder of 1998.
Investment Strategy
We are focused primarily on medium-to-large capitalization companies
in the developed equity markets around the world, where we believe
there are opportunities for above-average rates of growth in
earnings and improving rates of return. More than 65% of the Fund's
net assets continued to be invested in the equities of foreign-based
companies. Although the real rate of growth in consumer spending
accelerated in the United States in the first calendar quarter of
1998 and boosted the growth of real gross domestic product, we
anticipate that the overall real rate of global economic growth will
be subdued in 1998 as a result of the widespread recessions among
the Asian economies. Consequently, the Fund's two largest industry
sectors continued to be the banking and financial sector and the
insurance sector, with the majority of the investments in the United
Kingdom, major Western European countries, Canada and the United
States. Approximately 30% of the Fund's net assets are represented
by these two industries.
We reduced the Fund's overall weighting in the communications
equipment industry by about one-third after the stock prices of most
of the companies had reached new highs during the May quarter. We
were concerned about a delayed reaction to the recessions in Asia by
private and public telecommunications carriers, which might cause
these carriers to stretch out or cancel contracts to build new
digital cellular and wireline infrastructure. The telecommunications
service companies in the United States, Europe and Latin America
have continued to make major capital investments in new digital
cellular and wireline switch infrastructure. These programs relate
to new competitors and the deregulation of national
telecommunications markets. In addition, corporations are migrating
operational systems toward networked business applications that
operate over private or public internets and digital broadband
switched networks.
We added several companies to the Fund during the May quarter, many
of them based on their attractive valuations. Additions to the
portfolio included E.I. duPont de Nemours & Company, The Seagram
Company Ltd., WorldCom, Inc., Chancellor Media Corp., Franklin
Resources, Inc., Gannett Co., Inc., Groupe Danone S.A., Federated
Department Stores, Inc. and AT&T Corp. We added duPont because of
the relatively modest stock valuation and the potential for a
substantial improvement in returns and earnings growth over the next
five years as the company's current management becomes more
aggressive in corporate restructuring. Since duPont's management
made clear its intentions to liquidate the company's investment in
its energy subsidiary, Conoco, and to exercise its purchase option
for 50% of duPont-Merck Pharmaceuticals, we believe that management
can accomplish a major corporate shift in product mix toward life
sciences.
We added The Seagram Company Ltd. because of its attractive
valuation and the potential for enhanced rates of growth in earnings
from the acquisition and integration of PolyGram N.V. into Seagram's
Universal Music subsidiary. We purchased shares of WorldCom, Inc.
because of the company's focus on the most rapidly growing and most
profitable commercial telecommunications businesses on a global
basis. Chancellor Media Corp. was added in light of the potential
for rapid growth and substantial improvements in returns as
management develops one of the two largest radio and television
broadcast groups by means of acquisitions and mergers under the new
Federal deregulation.In response to expectations of continued rapid
growth and improving returns for the second-largest publicly traded
Merrill Lynch Global Growth Fund, Inc., May 31, 1998
investment manager in the United States, we purchased shares of
Franklin Resources, Inc. We added Gannett Co., Inc. largely in
response to our expectations of improving rates of return from
restructuring and a favorable environment in the United States for
growth of advertising revenue. Groupe Danone S.A. is one of the
leading food and beverage companies in France, and appeared to be
reasonably valued relative to prospects for continued improvements
in the rate of growth of earnings and operational returns under an
active restructuring program by management. We added Federated
Department Stores, Inc. because of the prospects for improved rates
of growth in earnings in a favorable US market environment for
consumer spending. Finally, AT&T Corp. was added in part because of
the prospects for a significant improvement in returns from major
restructuring by the new chief executive officer.
In Conclusion
We thank you for your investment in Merrill Lynch Global Growth
Fund, Inc. The Fund has continued to grow significantly from net
shareholders subscriptions. However, we remain fully invested with a
relatively modest cash reserve position. We continue to have a
positive outlook for potential equity investments in the major
developed equity markets around the world, and we look forward to
serving your investment needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Lawrence R. Fuller)
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
June 24, 1998
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 "Aggregate 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.
<TABLE>
Recent
Performance
Results*
<CAPTION>
3 Month Since Inception
Total Return Total Return
<S> <C> <C>
ML Global Growth Fund, Inc. Class A Shares +7.75% +20.90%
ML Global Growth Fund, Inc. Class B Shares +7.51 +20.20
ML Global Growth Fund, Inc. Class C Shares +7.51 +20.20
ML Global Growth Fund, Inc. Class D Shares +7.67 +20.70
<FN>
*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 October 31, 1997.
</TABLE>
Aggregate
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Inception (10/31/97) through 3/31/98 +16.80% +10.67%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Inception (10/31/97) through 3/31/98 +16.30% +12.30%
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Inception (10/31/97) through 3/31/98 +16.30% +15.30%
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Inception (10/31/97) through 3/31/98 +16.60% +10.48%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Growth Fund, Inc., May 31, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
NORTH Shares Percent of
AMERICA Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Canada Banking & Financial 380,000 Bank of Montreal $ 17,744,280 $ 21,385,451 1.2%
575,000 Canadian Imperial Bank of
Commerce 18,142,347 19,550,158 1.1
500,000 National Bank of Canada 7,419,127 10,210,396 0.6
300,000 Royal Bank of Canada 16,480,599 18,358,086 1.0
-------------- -------------- ------
59,786,353 69,504,091 3.9
Beverages 50,000 Seagram Company Ltd. (The) 2,126,452 2,196,875 0.1
Communications 350,000 Newbridge Networks
Equipment Corporation 16,697,365 9,914,741 0.5
70,000 Northern Telecom Ltd. 3,349,980 4,490,512 0.2
-------------- -------------- ------
20,047,345 14,405,253 0.7
Total Investments in Canada 81,960,150 86,106,219 4.7
United Advertising 85,000 Interpublic Group of
States Companies, Inc. 4,101,446 5,041,563 0.3
Banking & Financial 154,000 Banc One Corporation 7,522,284 8,489,250 0.5
50,000 BankAmerica Corporation 3,492,072 4,134,375 0.2
30,000 Citicorp 3,903,043 4,473,750 0.2
145,000 Mellon Bank Corporation 8,033,775 9,778,438 0.5
180,000 State Street Corporation 10,395,954 12,408,750 0.7
-------------- -------------- ------
33,347,128 39,284,563 2.1
Beverages 40,000 Coca-Cola Company (The) 2,321,880 3,135,000 0.2
Broadcasting 120,000 Chancellor Media Corp. 5,586,538 5,010,000 0.3
Broadcasting--Radio & 45,000 Clear Channel Communications,
Television Inc. 3,785,427 4,314,375 0.2
Chemicals 110,000 duPont (E.I.) de Nemours &
Company 8,806,972 8,470,000 0.5
Communications 470,000 Cisco Systems, Inc. 31,682,031 35,485,000 2.0
Equipment 440,000 FORE Systems, Inc. 7,553,744 9,597,500 0.5
80,000 Lucent Technologies, Inc. 3,424,060 5,675,000 0.3
-------------- -------------- ------
42,659,835 50,757,500 2.8
Computers 700,000 Compaq Computer Corporation 23,821,910 19,118,750 1.0
80,000 Dell Computer Corporation 5,259,880 6,590,000 0.4
45,000 Hewlett-Packard Company 2,922,777 2,795,625 0.2
-------------- -------------- ------
32,004,567 28,504,375 1.6
Cosmetics 110,000 Gillette Company (The) 10,104,061 12,883,750 0.7
20,000 International Flavors &
Fragrances, Inc. 968,044 960,000 0.1
-------------- -------------- ------
11,072,105 13,843,750 0.8
Electrical Equipment 35,000 Emerson Electric Co. 1,975,075 2,126,250 0.1
375,000 General Electric Company 27,679,379 31,265,625 1.7
10,000 Honeywell, Inc. 710,689 839,375 0.0
-------------- -------------- ------
30,365,143 34,231,250 1.8
Electronics 150,000 Intel Corporation 11,299,377 10,706,250 0.6
35,000 Texas Instruments Inc. 2,003,866 1,798,125 0.1
-------------- -------------- ------
13,303,243 12,504,375 0.7
Energy 110,000 El Paso Natural Gas Co. 3,488,678 4,248,750 0.2
50,000 Enron Corp. 1,922,310 2,506,250 0.1
-------------- -------------- ------
5,410,988 6,755,000 0.3
Entertainment 35,000 Viacom, Inc. (Class B) 1,088,787 1,925,000 0.1
150,000 Walt Disney Company (The) 14,343,318 16,968,750 0.9
-------------- -------------- ------
15,432,105 18,893,750 1.0
Financial Services 40,000 American Express Company 3,224,880 4,105,000 0.2
70,000 Federal National Mortgage
Association 3,823,246 4,191,250 0.2
100,000 Franklin Resources, Inc. 5,500,811 4,887,500 0.3
100,000 Morgan Stanley Dean Witter,
Discover & Co. 6,021,422 7,806,250 0.4
90,000 Travelers Group, Inc. 4,659,223 5,490,000 0.3
-------------- -------------- ------
23,229,582 26,480,000 1.4
Food Merchandising 50,000 Albertson's, Inc. 1,945,845 2,315,625 0.1
105,000 Meyer (Fred) Inc. 3,288,884 4,515,000 0.3
-------------- -------------- ------
5,234,729 6,830,625 0.4
Foods 40,000 ConAgra, Inc. 1,360,116 1,170,000 0.1
35,000 Wrigley (Wm.) Jr. Company
(Class B) 2,610,412 3,368,750 0.2
-------------- -------------- ------
3,970,528 4,538,750 0.3
Home Furnishings 175,000 Ethan Allen Interiors, Inc. 8,275,521 8,804,688 0.5
Hotels 125,000 Marriott International, Inc. 4,268,224 4,343,750 0.2
Household Products 35,000 Colgate-Palmolive Company 2,288,342 3,045,000 0.2
20,000 Kimberly-Clark Corporation 1,056,650 991,250 0.1
60,000 Procter & Gamble Company 4,312,704 5,036,250 0.3
-------------- -------------- ------
7,657,696 9,072,500 0.6
Information Processing 155,000 First Data Corporation 4,599,284 5,153,750 0.3
Insurance 10,000 Aetna Inc. 737,856 781,875 0.0
150,000 American International
Group, Inc. 15,884,252 18,571,875 1.0
-------------- -------------- ------
16,622,108 19,353,750 1.0
Medical Technology 150,000 Boston Scientific Corporation 7,648,860 9,562,500 0.5
90,000 Guidant Corporation 5,835,558 5,799,375 0.3
25,000 Johnson & Johnson 1,503,390 1,726,563 0.1
-------------- -------------- ------
14,987,808 17,088,438 0.9
Oil Services 190,000 Baker Hughes, Inc. 9,059,363 6,840,000 0.4
175,000 Diamond Offshore
Drilling, Inc. 10,338,912 8,367,188 0.5
55,000 Schlumberger Ltd. 5,140,124 4,293,438 0.2
-------------- -------------- ------
24,538,399 19,500,626 1.1
Pharmaceuticals 25,000 Amgen, Inc. 1,328,782 1,510,938 0.1
130,000 Bristol-Myers Squibb Co. 12,226,773 13,975,000 0.8
140,000 Merck & Co., Inc. 13,482,770 16,388,750 0.9
400,000 Pfizer, Inc. 37,659,850 41,925,000 2.3
-------------- -------------- ------
64,698,175 73,799,688 4.1
Photography 30,000 Eastman Kodak Company 1,880,844 2,141,250 0.1
Pollution Control 20,000 Waste Management, Inc. 505,400 650,000 0.0
Publishing 32,000 Gannett Co., Inc. 2,189,434 2,110,000 0.1
</TABLE>
Merrill Lynch Global Growth Fund, Inc., May 31, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Shares Percent of
(concluded) Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Restaurants 30,000 McDonald's Corporation $ 1,391,850 $ 1,968,750 0.1%
States
(concluded) Retail Stores 100,000 Federated Department
Stores, Inc. 4,964,030 5,181,250 0.3
420,000 Wal-Mart Stores, Inc. 15,286,530 23,178,750 1.3
-------------- -------------- ------
20,250,560 28,360,000 1.6
Semiconductor 60,000 Applied Materials, Inc. 2,061,564 1,920,000 0.1
Software--Computer 180,000 Microsoft Corporation 14,703,252 15,266,250 0.8
210,000 Peoplesoft, Inc. 9,005,140 9,148,125 0.5
-------------- -------------- ------
23,708,392 24,414,375 1.3
Specialty Retailing 115,000 CVS Corporation 7,713,724 8,071,562 0.4
100,000 Gap, Inc. (The) 4,014,457 5,400,000 0.3
435,000 Staples, Inc. 7,849,691 10,902,187 0.6
165,000 Walgreen Co. 4,931,107 5,805,937 0.3
-------------- -------------- ------
24,508,979 30,179,686 1.6
Telecommunications 160,000 AT&T Corp. 10,434,749 9,740,000 0.5
230,000 Sprint Corporation 14,929,042 16,502,500 0.9
225,000 WorldCom, Inc. 9,947,570 10,237,500 0.6
-------------- -------------- ------
35,311,361 36,480,000 2.0
Toys 200,000 Mattel, Inc. 7,823,472 7,575,000 0.4
Travel & Lodging 120,000 Carnival Corporation
(Class A) 7,035,852 8,130,000 0.5
Total Investments in the
United States 512,947,139 569,641,127 31.2
Total Investments in
North America 594,907,289 655,747,346 35.9
PACIFIC
BASIN
Japan Automobiles 480,000 Honda Motor Co., Ltd. 17,468,820 16,365,212 0.9
500,000 Toyota Motor Corporation 13,656,899 12,388,038 0.7
-------------- -------------- ------
31,125,719 28,753,250 1.6
Computers 700,000 Fujitsu Ltd. 7,951,104 8,039,584 0.4
700,000 NEC Corporation 7,957,519 7,129,442 0.4
-------------- -------------- ------
15,908,623 15,169,026 0.8
Leisure 140,000 Sony Corporation 12,422,680 11,831,841 0.6
Office Equipment 200,000 Canon, Inc. 4,706,266 4,767,408 0.3
Photography 400,000 Fuji Photo Film Co., Ltd. 15,918,085 13,550,997 0.7
Retail 250,000 Ito-Yokado Co., Ltd. 13,794,985 12,460,272 0.7
Telecommunications 3,000 Nippon Telegraph & Telephone
Corporation 26,362,868 24,703,842 1.4
Total Investments in the
Pacific Basin 120,239,226 111,236,636 6.1
WESTERN
EUROPE
Denmark Telecommunications 150,000 Tele-Denmark A/S 11,610,765 14,052,557 0.8
Total Investments in Denmark 11,610,765 14,052,557 0.8
Finland Communications Equipment 250,000 Nokia Oyj (Class A) 10,338,330 16,246,654 0.9
Total Investments in Finland 10,338,330 16,246,654 0.9
France Communications Equipment 90,000 Alcatel Alsthom Cie Generale
d'Electricite S.A. 13,456,967 19,277,108 1.1
Cosmetics 10,000 L'OREAL S.A. 3,739,626 4,971,553 0.3
Electronics 300,000 SGS-Thomson Microelectronics
N.V. 23,513,450 24,206,827 1.3
Foods 40,000 Groupe Danone S.A. 8,680,689 10,783,133 0.6
15,000 Promodes S.A. 6,249,958 7,314,257 0.4
-------------- -------------- ------
14,930,647 18,097,390 1.0
Information Processing 200,000 Cap Gemini S.A. 17,173,476 29,886,212 1.6
Insurance 165,000 AXA-UAP S.A. 11,694,023 18,802,711 1.0
Retail Stores 20,000 Carrefour S.A. 11,290,715 12,235,609 0.7
Total Investments in France 95,798,904 127,477,410 7.0
Germany Apparel 100,000 Adidas-Salomon AG 15,847,614 17,676,768 1.0
Automobiles 160,000 Daimler-Benz AG 15,926,944 16,143,659 0.9
Banking & Financial 600,000 Commerzbank AG 21,297,933 24,343,434 1.3
350,000 Deutsche Bank AG 23,047,332 30,168,350 1.7
525,000 Dresdner Bank AG 22,202,477 29,549,663 1.6
-------------- -------------- ------
66,547,742 84,061,447 4.6
Chemicals 150,000 BASF AG 5,213,865 6,961,279 0.4
150,000 Bayer AG 5,341,904 7,180,135 0.4
140,000 Hoechst AG 5,771,079 6,992,144 0.4
-------------- -------------- ------
16,326,848 21,133,558 1.2
Electronics 200,000 Siemens AG 12,859,590 12,929,293 0.7
Insurance 65,000 Allianz AG 17,121,210 20,572,391 1.1
1,911 Allianz AG (New Shares) 230,014 599,466 0.0
-------------- -------------- ------
17,351,224 21,171,857 1.1
Multi-Industry 175,000 VEBA AG 11,173,578 11,509,540 0.6
Retail Stores 250,000 Metro AG 11,962,548 15,951,178 0.9
Software--Computer 110,000 SAP AG (Systeme,
Anwendungen, Produkte in der
Datenverarbeitung) (Preferred) 34,118,327 61,111,111 3.3
Total Investments in Germany 202,114,415 261,688,411 14.3
Ireland Banking & Financial 1,300,000 Allied Irish Banks PLC 13,137,895 17,041,833 0.9
Total Investments in Ireland 13,137,895 17,041,833 0.9
Italy Insurance 500,000 Assicurazioni Generali S.p.A. 12,137,300 16,087,699 0.9
3,750,000 Istituto Nazionale delle
Assicurazioni S.p.A. (INA) 7,008,593 11,692,056 0.6
Total Investments in Italy 19,145,893 27,779,755 1.5
</TABLE>
Merrill Lynch Global Growth Fund, Inc., May 31, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN EUROPE Shares Percent of
(concluded) Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Netherlands Food Merchandising 600,000 Koninklijke Ahold N.V. $ 17,678,413 $ 18,975,994 1.0%
Household Products 200,000 Unilever N.V. 11,380,224 15,917,920 0.9
120,000 Unilever N.V. (NY
Registered Shares) 8,031,036 9,472,500 0.5
-------------- -------------- ------
19,411,260 25,390,420 1.4
Insurance 400,000 AEGON N.V. 21,905,046 32,074,908 1.8
235,000 ING Groep N.V. 10,003,319 16,163,712 0.9
-------------- -------------- ------
31,908,365 48,238,620 2.7
Leisure 70,000 Philips Electronics N.V. 6,243,204 6,662,516 0.4
150,000 Polygram N.V. 7,985,515 8,128,300 0.4
-------------- -------------- ------
14,228,719 14,790,816 0.8
Software--Computer 160,000 Baan Company N.V. 5,857,654 7,419,066 0.4
Total Investments in the
Netherlands 89,084,411 114,814,916 6.3
Spain Banking & Financial 400,000 Banco Bilbao Vizcaya, S.A. 15,814,291 20,110,994 1.1
275,000 Banco Santander, S.A. 10,248,414 13,862,645 0.8
Total Investments in Spain 26,062,705 33,973,639 1.9
Sweden Communications Equipment 250,000 Telefonaktiebolaget LM
Ericsson (Class B) 5,251,373 7,141,031 0.4
Total Investments in Sweden 5,251,373 7,141,031 0.4
Switzerland Foods 10,000 Nestle S.A. (Registered
Shares) 15,624,425 21,456,586 1.1
Insurance 20,000 Zuerich Versicherungs-
Gesellschaft (Registered
Shares) 8,709,180 12,510,143 0.7
Pharmaceuticals 17,000 Novartis AG (Registered
Shares) 26,865,087 28,831,485 1.6
Total Investments in
Switzerland 51,198,692 62,798,214 3.4
United Banking & Financial 875,000 Barclays PLC 22,582,208 23,326,371 1.3
Kingdom 500,000 HSBC Holdings PLC 14,210,888 13,052,000 0.7
1,800,000 Lloyds TSB Group PLC 22,830,755 26,121,946 1.4
1,500,000 National Westminster Bank
PLC (Ordinary) 22,162,632 27,384,727 1.5
-------------- -------------- ------
81,786,483 89,885,044 4.9
Broadcast--Media 1,000,000 British Sky Broadcasting
Group PLC 6,087,391 7,031,765 0.4
Chemicals 365,000 Imperial Chemical
Industries PLC 5,501,341 6,913,726 0.4
Electrical Equipment 750,000 Siebe PLC 14,965,916 18,782,644 1.0
Household Products 750,000 Unilever PLC 5,692,608 8,228,878 0.5
Information Processing 1,040,000 Reuters Group PLC 13,444,894 11,919,739 0.7
Insurance 1,000,000 Commercial Union PLC 14,287,623 18,158,595 1.0
2,500,000 Guardian Royal Exchange PLC 14,020,735 15,825,550 0.9
2,000,000 Royal & Sun Alliance
Insurance Group PLC 20,023,591 21,193,185 1.1
-------------- -------------- ------
48,331,949 55,177,330 3.0
Pharmaceuticals 265,000 Glaxo Wellcome PLC 5,881,443 7,125,087 0.4
575,000 SmithKline Beecham PLC 5,491,124 6,224,376 0.3
400,000 Zeneca Group PLC 15,610,472 16,243,214 0.9
-------------- -------------- ------
26,983,039 29,592,677 1.6
Publishing 750,000 Pearson PLC 10,169,178 13,741,309 0.7
Retail Stores 750,000 Boots Company PLC (The) 11,223,919 11,245,114 0.6
2,000,000 J Sainsbury PLC 17,039,998 15,809,235 0.9
1,400,000 Tesco PLC 11,323,155 12,288,458 0.7
-------------- -------------- ------
39,587,072 39,342,807 2.2
Telecommunications 700,000 COLT Telecom Group PLC 9,536,664 22,726,795 1.2
2,000,000 Vodafone Group PLC 11,380,920 21,959,990 1.2
-------------- -------------- ------
20,917,584 44,686,785 2.4
Total Investments in the
United Kingdom 273,467,455 325,302,704 17.8
Total Investments in
Western Europe 797,210,838 1,008,317,124 55.2
SHORT-TERM Face
SECURITIES Amount Issue
Commercial Paper* $38,360,000 General Motors Acceptance
Corp., 5.69% due 6/01/1998 38,347,874 38,347,874 2.1
Total Investments in
Short-Term Securities 38,347,874 38,347,874 2.1
Total Investments $1,550,705,227 1,813,648,980 99.3
==============
Other Assets Less Liabilities 13,352,920 0.7
-------------- ------
Net Assets $1,827,001,900 100.0%
============== ======
Net Asset Value: Class A--Based on net assets of $57,263,018
and 4,735,668 shares outstanding $ 12.09
==============
Class B--Based on net assets of $1,290,838,059
and 107,386,078 shares outstanding $ 12.02
==============
Class C--Based on net assets of $258,308,585
and 21,489,478 shares outstanding $ 12.02
==============
Class D--Based on net assets of $220,592,238
and 18,269,924 shares outstanding $ 12.07
==============
<FN>
*Commercial Paper is traded on a discount basis; the interest rate
shown is the discount rate paid at the time of purchase by the Fund.
</TABLE>
PORTFOLIO CHANGES
Additions
For the Quarter Ended May 31, 1998
AT&T Corp.
Allianz AG (New Shares)
Chancellor Media Corp.
duPont (E.I.) de Nemours & Company
Federated Department Stores, Inc.
Franklin Resources, Inc.
Gannett Co., Inc.
Groupe Danone S.A.
Seagram Company Ltd. (The)
*Sodexho Marriott Services, Inc.
WorldCom, Inc.
Deletions
*Sodexho Marriott Services, Inc.
[FN]
*Added and deleted in the same quarter.
