MERRILL LYNCH
GLOBAL GROWTH
FUND, INC.
FUND LOGO
Quarterly Report
May 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 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, 1999
Percent of
Ten Largest Industries Net Assets
Banking & Financial 19.9%
Telecommunications 16.1
Insurance 9.5
Pharmaceuticals 8.7
Communications Equipment 4.6
Retail Stores 4.0
Financial Services 3.8
Specialty Retailing 3.1
Household Products 2.3
Software--Computer 2.2
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Cisco Systems, Inc. United States 4.0%
COLT Telecom Group PLC United Kingdom 2.6
Vodafone Group PLC United Kingdom 2.1
General Electric Company United States 2.0
Bristol-Myers Squibb Company United States 1.9
National Westminster Bank PLC United Kingdom 1.9
SAP AG (Systeme, Anwendungen,
Produkte in der Datenverar-
beitung)(Preferred) Germany 1.8
Sprint Corp. (FON Group) United States 1.8
Pfizer Inc. United States 1.8
Mellon Bank Corporation United States 1.7
Officers and
Directors
Terry K. Glenn, 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
Arthur Zeikel, Director
Lawrence R. Fuller, Senior Vice President
and Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Philip M. Mandel, Secretary of Merrill Lynch Global Growth Fund,
Inc. has recently retired. His colleagues at Merrill Lynch Asset
Management, L.P. join the Fund's Board of Directors in wishing Mr.
Mandel well in his retirement.
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
Merrill Lynch Global Growth Fund, Inc., May 31, 1999
DEAR SHAREHOLDER
For the quarter ended May 31, 1999, total returns for Merrill Lynch
Global Growth Fund, Inc.'s Class A, Class B, Class C and Class D
Shares were +1.15%, +0.92%, +0.92% and +1.07%, respectively. The
unmanaged Morgan Stanley Capital International (MSCI) World Stock
Index for the same three-month period had a total return of +4.27%.
(Results shown do not reflect sales charges and would be lower if
sales charges were included.)
The Fund's underperformance relative to the unmanaged MSCI World
Stock Index primarily reflects our avoidance of equity investments
in Asia and Latin America because of our concerns about the duration
and breadth of the business and profit recovery in these regions. In
addition, during the May quarter investors shifted assets from the
relatively more stable earnings growth companies in
telecommunications, banking, insurance, pharmaceuticals and
retailing to companies in the energy, energy service, steel, paper,
chemicals, industrial equipment and construction equipment
industries. The Fund had very modest exposure to these areas.
The Fund's largest industry weightings were in the banking and
financial, telecommunications, insurance and pharmaceuticals
industries. In our opinion, the rate of growth in nominal and real
consumer spending and business activity, including capital
investment, is slowing rather than accelerating. Many investment
strategists and economists forecast a substantial and sustained
upturn in consumer spending and business activity in Japan and many
other Asian economies. Also, many of the same professionals forecast
a robust upturn in European business activity and corporate profits.
From our perspective, we currently do not believe these changes are
sustainable. There appears to be a lot more forecasting of events to
come despite the lack of anecdotal, factual or policy-making support
for them.
The Environment
During the May quarter, the substantial increases in US Treasury
long-term interest rates and oil prices were a factor in the share
price declines for banks as well as insurance, financial services,
pharmaceutical, retail, telecommunications and household products
companies. At the same time, these increases in oil prices and long-
term interest rates are consistent with a growing perception of a
real and sustainable worldwide cyclical upturn in business activity
and profits for companies in energy, energy service, paper,
chemical, steel, industrial equipment and transportation equipment
companies. What we have witnessed at the company level in many
industries, including technology, agricultural and construction
equipment, are shortfalls in revenues and earnings and a cautious
outlook for the remainder of 1999. Some of the largest companies in
the integrated energy, steel and industrial aerospace industries are
making merger arrangements, which we believe is more indicative of a
cautious outlook for business activity rather than a strong and
sustainable cyclical upturn. Consequently, we continue with the same
outlook for a slowdown in the rates of real growth in the United
States and the other major economies around the world during the
remainder of 1999.
The recently reported surge in first quarter gross domestic product
growth for the Japanese economy reflects an almost 50% annualized
rate of growth in government spending on public infrastructure
projects. Private corporations in Japan are accelerating programs to
close manufacturing plants and lay off employees, which are likely
to keep consumer spending from rising very much. The US Federal Open
Market Committee raised the Federal Funds rate 0.25% on June 30,
1999. As a result, consumer confidence levels may come down.
Already, new home starts have been declining for a number of months
as a result of the rise in long-term interest rates for residential
mortgage financing. In addition, the stimulus to consumer spending
from the substantial rise in Federal tax refunds is abating.
In the United States, as well as the United Kingdom and Western
Europe, levels of manufacturing employment continue to decline as a
result of the shift of production to lower cost producers in Asia,
Latin America and Eastern Europe. The loss of relatively high wage
jobs is causing a slowdown in the rate of growth of hourly wages and
could further slow the rates of growth of real and nominal consumer
spending. Recently, the Bank of England unexpectedly cut Britain's
benchmark interest rate to the lowest level in more than 20 years in
order to weaken the country's currency and stop the year-long
recession in manufacturing and in the farm sector, which together
represent 30% of the UK economy. From our perspective, real economic
growth around the world is more likely to be in a slowdown mode
rather than a take-off phase during the second half of 1999.
Therefore, we anticipate that inflation of commodity prices,
including energy sources and wage rates, is likely to be modest and
interest rates are more likely to decline than rise in most of the
major developed economies.
Investment Strategy
During the quarter ended May 31, 1999, we continued to focus on
companies that we believe will produce consistent earnings growth
while there is a slowdown in the overall rate of growth in real and
nominal business activity in the major industrialized economies.
During the May quarter, we continued to reduce our weightings in
relatively large-capitalization technology companies and US
retailing companies. We eliminated Baan Company, NV, FORE Systems,
Inc., Network Appliance, Inc., Newbridge Networks Corporation,
Nextel Communications, Inc., PeopleSoft, Inc., STMicroelectronics NV
and Viacom, Inc. We believed that the valuations for these companies
were unattractive relative to the potential business fundamentals in
the intermediate term.
During the May quarter, we added two new companies to the portfolio:
Abbott Laboratories and The Hartford Financial Services Group, Inc.
We believe Abbott Laboratories' stock valuation is very attractive
relative to expectations of an increase in the rate of growth of
earnings and rates of return on assets as new executive leadership
within the company orchestrates restructuring of its businesses. We
view the valuation of The Hartford Financial Services Group, Inc. as
attractive relative to prospects for improved rates of return and
faster earnings growth from internal restructuring by the existing
management.
During the three-month period, we increased our weightings of the
banking and financial and telecommunications industries, the two
largest sectors in the Fund, from 17.4% and 15.5% of net assets,
respectively, to 19.9% and 16.1%, respectively. We remain relatively
fully invested with only modest cash reserves.
In Conclusion
We continue to anticipate that the most attractive investment
opportunities during 1999 will be found among US-based corporations.
We believe that the next most attractive investment opportunities
among the banking, financial service, insurance and
telecommunication companies are in the United Kingdom and Western
Europe. The focus of our investments is on the larger, higher-
quality companies in the developed economies where we anticipate
above-average growth in earnings and cash flow.
We thank you for your continued investment in Merrill Lynch Global
Growth Fund, Inc., and we look forward to reviewing our strategy
with you in the upcoming annual report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Lawrence R. Fuller)
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
July 1, 1999
Merrill Lynch Global Growth Fund, Inc., May 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.
<TABLE>
Recent
Performance
Results*
<CAPTION>
3 Month 12 Month Since Inception
Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Growth Fund, Inc. Class A Shares +1.15% +11.75% +35.10%
ML Global Growth Fund, Inc. Class B Shares +0.92 +10.63 +32.98
ML Global Growth Fund, Inc. Class C Shares +0.92 +10.60 +32.94
ML Global Growth Fund, Inc. Class D Shares +1.07 +11.49 +34.56
<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 commenced operations on 10/31/97.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/99 +18.12% +11.92%
Inception (10/31/97) through 3/31/99 +25.56 +20.87
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/99 +16.96% +12.96%
Inception (10/31/97) through 3/31/99 +24.31 +22.37
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 3/31/99 +16.92% +15.92%
Inception (10/31/97) through 3/31/99 +24.29 +24.29
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 3/31/99 +17.94% +11.75%
Inception (10/31/97) through 3/31/99 +25.28 +20.59
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PORTFOLIO CHANGES
For the Quarter Ended May 31, 1999
Additions
Abbott Laboratories
The Hartford Financial Services Group, Inc.
*Nippon Telegraph & Telephone Corporation
Sun Life and Provincial Holdings PLC
Deletions
Baan Company, NV
FORE Systems, Inc.
Guardian Royal Exchange PLC
Network Appliance, Inc.
Newbridge Networks Corporation
Nextel Communications, Inc. (Class A)
*Nippon Telegraph & Telephone Corporation
PeopleSoft, Inc.
STMicroelectronics NV
Viacom, Inc. (Class B)
[FN]
*Added and deleted in the same quarter.
Merrill Lynch Global Growth Fund, Inc., May 31, 1999
<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 $ 14,587,555 0.6%
1,549,200 Canadian Imperial Bank of
Commerce 42,925,733 37,926,692 1.5
500,000 National Bank of Canada 7,419,127 7,463,448 0.3
600,000 Royal Bank of Canada 30,163,355 27,541,653 1.1
-------------- -------------- ------
98,252,495 87,519,348 3.5
Communications Equipment 20,000 Nortel Networks Corporation 957,137 1,503,570 0.1
Telecommunications 350,000 MetroNet Communications
Corp.'B' 10,722,390 19,818,750 0.8
Total Investments in Canada 109,932,022 108,841,668 4.4
United Advertising 135,000 The Interpublic Group of
States Companies, Inc. 7,857,120 10,226,250 0.4
Banking & Financial 500,000 Bank of America Corporation 33,706,442 32,343,750 1.3
550,000 Bank One Corporation 27,513,635 31,109,375 1.3
500,000 Citigroup Inc. 28,305,428 33,125,000 1.3
1,200,000 Mellon Bank Corporation 39,880,780 42,825,000 1.7
155,100 State Street Corporation 8,959,526 11,826,375 0.5
-------------- -------------- ------
138,365,811 151,229,500 6.1
Beverages 60,000 The Coca-Cola Company 5,163,012 4,098,750 0.2
Broadcasting--Media 300,000 Infinity Broadcasting
Corp. (Class A) 6,563,160 7,668,750 0.3
Broadcasting--Radio & 200,000 CBS Corporation 5,624,578 8,350,000 0.3
Television 230,000 Chancellor Media Corporation 10,540,018 11,672,500 0.5
290,000 Clear Channel
Communications, Inc. 12,790,695 19,158,125 0.8
-------------- -------------- ------
28,955,291 39,180,625 1.6
Chemicals 420,000 E.I. du Pont de Nemours
and Company 26,874,407 27,483,750 1.1
Communications 905,000 Cisco Systems, Inc. 53,430,191 98,588,437 4.0
Equipment 60,000 Lucent Technologies Inc. 1,284,023 3,412,500 0.1
-------------- -------------- ------
54,714,214 102,000,937 4.1
Computers 125,000 Compaq Computer Corporation 4,489,688 2,960,937 0.1
70,000 Dell Computer Corporation 1,773,499 2,406,250 0.1
260,000 International Business
Machines Corporation 24,929,439 30,241,250 1.3
-------------- -------------- ------
31,192,626 35,608,437 1.5
Cosmetics 70,000 The Gillette Company 3,202,052 3,570,000 0.2
20,000 International Flavors &
Fragrances Inc. 968,044 822,500 0.0
-------------- -------------- ------
4,170,096 4,392,500 0.2
Diversified 300,000 Minnesota Mining and
Electrical Equipment Manufacturing Company (3M) 23,090,161 25,725,000 1.1
35,000 Emerson Electric Co. 1,975,074 2,235,625 0.1
482,000 General Electric Company 38,794,334 49,013,375 2.0
10,000 Honeywell Inc. 710,689 946,250 0.0
-------------- -------------- ------
41,480,097 52,195,250 2.1
Electronics 80,000 Intel Corporation 3,814,910 4,345,000 0.2
10,000 Texas Instruments Incorporated 599,435 1,093,750 0.0
-------------- -------------- ------
4,414,345 5,438,750 0.2
Energy 500,000 El Paso Energy Corporation 18,280,128 18,031,250 0.7
59,000 Enron Corp. 3,272,870 4,211,125 0.2
-------------- -------------- ------
21,552,998 22,242,375 0.9
Entertainment 450,000 The Walt Disney Company 14,343,318 13,106,250 0.5
Financial Services 40,000 American Express Company 3,224,880 4,847,500 0.2
150,000 Federal Home Loan Mortgage
Association 8,815,006 8,746,875 0.4
300,000 Federal National Mortgage
Association 19,692,653 20,400,000 0.8
100,000 Franklin Resources, Inc. 5,500,811 4,350,000 0.2
255,000 Morgan Stanley Dean Witter & Co. 20,903,675 24,607,500 1.0
160,000 T. Rowe Price Associates, Inc. 5,943,509 6,180,000 0.3
-------------- -------------- ------
64,080,534 69,131,875 2.9
Food Merchandising 50,000 Albertson's, Inc. 2,070,474 2,675,000 0.1
75,000 The Kroger Co. 2,846,305 4,392,187 0.2
65,000 Safeway Inc. 3,562,982 3,022,500 0.1
-------------- -------------- ------
8,479,761 10,089,687 0.4
Foods 40,000 ConAgra, Inc. 1,360,116 1,042,500 0.1
35,000 Wm. Wrigley Jr. Company 2,610,412 3,047,188 0.1
-------------- -------------- ------
3,970,528 4,089,688 0.2
Home Furnishings 262,500 Ethan Allen Interiors, Inc. 8,275,521 8,367,187 0.4
Hotels 125,000 Marriott International,
Inc. (Class A) 4,268,224 4,757,812 0.2
Household Products 20,000 Colgate-Palmolive Company 1,307,624 1,997,500 0.1
230,000 Kimberly-Clark Corporation 11,691,857 13,498,125 0.5
160,000 The Procter & Gamble Company 12,828,674 14,940,000 0.6
-------------- -------------- ------
25,828,155 30,435,625 1.2
Information 260,000 America Online, Inc. 7,573,834 31,037,500 1.2
Processing 370,000 First Data Corporation 13,324,590 16,626,875 0.7
-------------- -------------- ------
20,898,424 47,664,375 1.9
Insurance 100,000 Aetna Inc. 8,245,785 9,081,250 0.4
315,000 American International
Group, Inc. 30,550,735 36,008,437 1.4
370,000 The Hartford Financial
Services Group, Inc. 22,080,538 23,402,500 0.9
-------------- -------------- ------
60,877,058 68,492,187 2.7
Medical Technology 255,000 Abbott Laboratories 12,210,931 11,522,812 0.5
470,000 Boston Scientific Corporation 13,140,865 17,830,625 0.7
40,000 Guidant Corporation 1,258,388 2,000,000 0.1
25,000 Johnson & Johnson 1,503,390 2,315,625 0.1
-------------- -------------- ------
28,113,574 33,669,062 1.4
Oil Services 50,000 Baker Hughes Incorporated 2,319,315 1,556,250 0.1
25,000 Diamond Offshore Drilling, Inc. 998,687 681,250 0.0
18,000 Schlumberger Limited 1,682,222 1,083,375 0.0
-------------- -------------- ------
5,000,224 3,320,875 0.1
Pharmaceuticals 70,000 Amgen Inc. 2,585,364 4,427,500 0.2
680,000 Bristol-Myers Squibb Company 38,970,523 46,665,000 1.9
420,000 Merck & Co., Inc. 23,700,031 28,350,000 1.1
405,000 Pfizer Inc. 38,360,281 43,335,000 1.8
-------------- -------------- ------
103,616,199 122,777,500 5.0
</TABLE>
Merrill Lynch Global Growth Fund, Inc., May 31, 1999
<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 Photography 13,000 Eastman Kodak Company $ 815,032 $ 879,125 0.0%
States
(concluded) Pollution Control 14,500 Waste Management, Inc. 505,400 766,687 0.0
Publishing 140,000 Gannett Co., Inc. 9,998,409 10,115,000 0.4
Restaurants 100,000 McDonald's Corporation 2,743,040 3,850,000 0.2
Retail Stores 200,000 The TJX Companies, Inc. 6,214,528 6,000,000 0.2
400,000 Wal-Mart Stores, Inc. 12,841,536 17,050,000 0.7
-------------- -------------- ------
19,056,064 23,050,000 0.9
Semiconductors 40,000 Applied Materials, Inc. 1,213,752 2,200,000 0.1
Software--Computer 120,000 Microsoft Corporation 6,398,058 9,682,500 0.4
Specialty Retailing 75,000 Abercrombie & Fitch Co.
(Class A) 3,856,389 6,309,375 0.3
440,000 CVS Corporation 16,815,007 20,240,000 0.8
45,000 The Gap, Inc. 1,956,876 2,815,312 0.1
252,800 Lowe's Companies, Inc. 12,845,503 13,129,800 0.5
395,000 Staples, Inc. 8,523,621 11,331,563 0.5
55,000 Tommy Hilfiger Corporation 3,903,390 4,128,437 0.2
800,000 Walgreen Co. 19,922,431 18,600,000 0.7
-------------- -------------- ------
67,823,217 76,554,487 3.1
Telecommunications 622,500 AT&T Corp. 32,230,942 34,548,750 1.4
145,000 Ameritech Corporation 8,281,556 9,542,812 0.4
500,000 GTE Corporation 28,881,847 31,531,250 1.3
325,000 MCI WorldCom Inc. 15,203,420 28,051,562 1.1
390,000 Sprint Corp. (FON Group) 23,856,129 43,972,500 1.8
325,000 Sprint Corp. (PCS Group) 5,878,137 14,625,000 0.6
-------------- -------------- ------
114,332,031 162,271,874 6.6
Toys 200,000 Mattel, Inc. 7,823,472 5,287,500 0.2
Travel & Lodging 370,000 Carnival Corporation 12,306,515 15,170,000 0.6
Total Investments in the
United States 985,159,848 1,213,220,170 49.2
Total Investments in
North America 1,095,091,870 1,322,061,838 53.6
PACIFIC BASIN
Australia Telecommunications 4,000,000 Cable & Wireless Optus Limited 8,573,805 7,667,224 0.3
Total Investments in Australia 8,573,805 7,667,224 0.3
Japan Automobiles 100,000 Honda Motor Co., Ltd. 3,737,654 4,109,362 0.2
150,000 Toyota Motor Corporation 4,186,599 4,101,077 0.1
-------------- -------------- ------
7,924,253 8,210,439 0.3
Computers 200,000 Fujitsu Limited 2,366,284 3,347,142 0.1
Leisure 20,000 Sony Corporation 1,813,988 1,882,353 0.1
Office Equipment 25,000 Canon, Inc. 561,859 631,732 0.0
Photography 50,000 Fuji Photo Film 1,994,128 1,789,561 0.1
Retail 100,000 Ito-Yokado Co., Ltd. 5,399,601 5,973,488 0.3
Telecommunications 3,000 Nippon Telegraph & Telephone
Corporation (NTT) 26,362,868 29,328,915 1.2
Total Investments in Japan 46,422,981 51,163,630 2.1
Total Investments in the
Pacific Basin 54,996,786 58,830,854 2.4
WESTERN EUROPE
Denmark Telecommunications 150,000 TeleDanmark A/S 'B' 11,610,765 15,356,922 0.6
Total Investments in Denmark 11,610,765 15,356,922 0.6
Finland Communications Equipment 120,000 Nokia Oyj 2,745,757 8,552,280 0.3
Total Investments in Finland 2,745,757 8,552,280 0.3
France Broadcasting & Publishing 10,000 Societe Television Francaise 1 1,820,322 2,403,500 0.1
Cosmetics 5,000 L'Oreal 1,869,813 3,017,438 0.1
Electrical Equipment 25,000 Alstom 852,037 739,599 0.0
Foods 20,000 Danone 4,591,628 5,517,600 0.2
5,000 Promodes 2,986,130 3,270,850 0.2
-------------- -------------- ------
7,577,758 8,788,450 0.4
Information Processing 50,000 Cap Gemini SA 4,425,728 7,215,725 0.3
Insurance 172,000 Axa 12,635,306 19,861,270 0.8
Pharmaceuticals 50,000 Rhone-Poulenc SA 2,419,376 2,377,375 0.1
Retail Stores 90,000 Carrefour SA 9,213,261 11,831,490 0.5
Total Investments in France 40,813,601 56,234,847 2.3
Germany Apparel 50,000 Adidas-Salomon AG 8,340,102 4,989,875 0.2
Automobiles 201,000 DaimlerChrysler AG 19,112,541 17,381,224 0.7
Banking & Financial 600,000 Commerzbank AG 21,297,933 16,866,300 0.7
700,000 Deutsche Bank AG 41,566,543 36,575,000 1.5
525,000 Dresdner Bank AG 22,202,477 19,531,050 0.8
-------------- -------------- ------
85,066,953 72,972,350 3.0
Chemicals 150,000 BASF AG 5,213,865 5,846,775 0.2
150,000 Bayer AG 5,341,904 5,846,775 0.2
300,000 Hoechst AG 14,182,600 13,386,450 0.6
-------------- -------------- ------
24,738,369 25,080,000 1.0
Electronics 300,000 Siemens AG 20,165,738 20,220,750 0.8
Insurance 79,000 Allianz AG (Registered Shares) 21,085,769 21,629,410 0.9
Multi-Industry 125,000 Mannesmann AG 13,608,168 17,111,875 0.7
175,000 Veba AG 11,173,578 10,003,263 0.4
-------------- -------------- ------
24,781,746 27,115,138 1.1
Retail Stores 250,000 Metro AG 11,962,548 15,805,625 0.6
Software--Computer 110,000 SAP AG (Systeme, Anwendungen,
Produkte in der
Datenverarbeitung) (Preferred) 34,118,327 44,083,325 1.8
Total Investments in Germany 249,372,093 249,277,697 10.1
</TABLE>
Merrill Lynch Global Growth Fund, Inc., May 31, 1999
<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>
Ireland Banking & Financial 1,700,000 Allied Irish Banks PLC $ 19,831,415 $ 22,606,542 0.9%
Telecommunications 100,000 Esat Telecom Group PLC (ADR)* 3,206,252 3,675,000 0.2
Total Investments in Ireland 23,037,667 26,281,542 1.1
Italy Banking & Financial 4,500,000 Banca di Roma 7,569,237 6,583,500 0.2
2,000,000 Unicredito Italiano SpA 9,830,384 9,425,900 0.4
-------------- -------------- ------
17,399,621 16,009,400 0.6
Insurance 550,000 Assicurazioni Generali SpA 13,942,232 19,598,975 0.8
4,000,000 Istituto Nazionale delle
Assicurazioni SpA (INA) 6,507,926 9,363,200 0.4
20,450,158 28,962,175 1.2
Real Estate 3,750,000 Unione Immobiliare SpA 1,077,689 1,771,275 0.1
Investment Trust
Total Investments in Italy 38,927,468 46,742,850 1.9
Netherlands Household Products 223,214 Unilever NV 15,001,154 14,870,238 0.6
107,142 Unilever NV
(NY Registered Shares) 8,031,036 6,997,712 0.3
-------------- -------------- ------
23,032,190 21,867,950 0.9
Insurance 400,000 AEGON NV 21,905,046 32,395,000 1.3
300,000 ING Groep NV 13,600,442 16,066,875 0.7
-------------- -------------- ------
35,505,488 48,461,875 2.0
Leisure 30,000 Koninklijke (Royal) Philips
Electronics NV 2,942,792 2,578,538 0.1
Retail Stores 600,000 Koninklijke Ahold NV 17,678,413 20,973,150 0.8
Telecommunications 187,500 Equant 6,773,837 15,479,063 0.6
Total Investments in the
Netherlands 85,932,720 109,360,576 4.4
Spain Banking & Financial 600,000 Banco Bilbao Vizcaya, SA 10,292,072 8,671,410 0.3
550,000 Banco Santander Central
Hispano, SA 11,648,050 11,495,000 0.5
Total Investments in Spain 21,940,122 20,166,410 0.8
Sweden Communications 50,000 Telefonaktiebolaget LM Ericsson 'B' 998,239 1,338,192 0.1
Equipment
Total Investments in Sweden 998,239 1,338,192 0.1
Switzerland Foods 12,000 Nestle SA (Registered Shares) 20,005,700 21,656,805 0.9
Insurance 31,000 Zurich Allied AG 15,191,232 18,302,433 0.7
Pharmaceuticals 18,000 Novartis AG (Registered Shares) 28,480,812 26,224,852 1.1
Total Investments in Switzerland 63,677,744 66,184,090 2.7
United Banking & Financial 1,200,000 Barclays PLC 30,747,245 36,372,859 1.5
Kingdom 250,000 HSBC Holdings PLC 7,588,742 8,350,258 0.3
2,500,000 Lloyds TSB Group PLC 32,526,945 33,024,750 1.3
2,000,000 National Westminster Bank PLC 32,517,060 45,858,368 1.9
-------------- -------------- ------
103,379,992 123,606,235 5.0
Broadcast--Media 1,300,000 British Sky Broadcasting
Group PLC ("BSkyB") 8,212,658 12,343,651 0.5
Chemicals 50,000 Imperial Chemical Industries PLC 753,608 550,813 0.0
Electrical Equipment 150,000 BTR Siebe PLC 752,323 683,312 0.0
Household Products 669,642 Unilever PLC 5,692,608 5,886,547 0.2
Insurance 1,200,000 CGU PLC 17,278,173 17,523,533 0.7
3,636,363 Royal & Sun Alliance
Insurance Group PLC 36,932,864 29,724,089 1.2
607,500 Sun Life and Provincial
Holdings PLC 3,976,071 4,588,849 0.2
-------------- -------------- ------
58,187,108 51,836,471 2.1
Pharmaceuticals 500,000 AstraZeneca Group PLC 19,556,084 19,862,886 0.8
1,000,000 Glaxo Wellcome PLC 28,387,082 28,053,024 1.2
1,000,000 SmithKline Beecham PLC 11,359,894 13,033,768 0.5
-------------- -------------- ------
59,303,060 60,949,678 2.5
Publishing 250,000 Pearson PLC 3,653,585 4,763,570 0.2
Retail Stores 750,000 Boots Company PLC 11,223,919 9,799,344 0.4
100,000 J Sainsbury PLC 847,793 607,655 0.0
1,499,200 Somerfield PLC 9,606,795 6,829,477 0.3
4,200,000 Tesco PLC 11,323,155 12,222,760 0.5
-------------- -------------- ------
33,001,662 29,459,236 1.2
Telecommunications 3,000,000 COLT Telecom Group PLC 13,265,802 63,311,448 2.6
1,250,000 Cable & Wireless PLC 16,911,329 15,411,550 0.6
500,000 Energis PLC 14,462,378 12,057,036 0.5
2,750,000 Vodafone Group PLC 21,969,857 52,355,237 2.1
-------------- -------------- ------
66,609,366 143,135,271 5.8
Total Investments in the
United Kingdom 339,545,970 433,214,784 17.5
Total Investments in
Western Europe 878,602,146 1,032,710,190 41.8
SHORT-TERM Face
SECURITIES Amount Issue
Commercial Paper** $23,818,000 General Motors Acceptance
Corp., 4.94% due 6/01/1999 23,808,195 23,808,195 1.0
Total Investments in
Short-Term Securities 23,808,195 23,808,195 1.0
Total Investments $2,052,498,997 2,437,411,077 98.8
==============
Other Assets Less Liabilities 29,503,560 1.2
-------------- ------
Net Assets $2,466,914,637 100.0%
============== ======
Net Asset Value: Class A--Based on net assets of $168,751,679
and 12,761,783 shares outstanding $ 13.22
==============
Class B--Based on net assets of $1,691,025,665
and 129,088,893 shares outstanding $ 13.10
==============
Class C--Based on net assets of $308,056,784
and 23,511,141 shares outstanding $ 13.10
==============
Class D--Based on net assets of $299,080,509 and
22,669,196 shares outstanding $ 13.19
==============
<FN>
*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.
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