MERRILL LYNCH
GLOBAL GROWTH
FUND, INC.
FUND LOGO
Quarterly Report
November 30, 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
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
November 30, 1998
Percent of
Ten Largest Industries Net Assets
Banking & Financial 16.1%
Telecommunications 11.9
Insurance 11.1
Pharmaceuticals 9.0
Retail Stores 7.2
Software--Computer 5.3
Specialty Retailing 3.8
Communications Equipment 3.4
Foods 2.6
Electronics 2.6
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
SAP AG (Systeme, Anwendungen,
Produkte in der Datenverar-
beitung)(Preferred) Germany 2.8%
Cisco Systems, Inc. United States 2.6
Wal-Mart Stores, Inc. United States 2.4
Pfizer Inc. United States 2.2
AEGON N.V. Netherlands 2.1
Microsoft Corporation United States 2.1
Vodafone Group PLC United Kingdom 1.8
COLT Telecom Group PLC United Kingdom 1.8
General Electric Company United States 1.7
Novartis AG (Registered Shares) Switzerland 1.7
Merrill Lynch Global Growth Fund, Inc., November 30, 1998
DEAR SHAREHOLDER
For the quarter ended November 30, 1998, total returns for Merrill
Lynch Global Growth Fund, Inc.'s Class A, Class B, Class C and Class
D Shares were +14.84%, +14.61%, +14.61% and +14.88%, respectively.
The unmanaged Morgan Stanley Capital International (MSCI) World
Stock Index for the same three-month period had a total return
+17.51%. (Results shown do not reflect sales charges and would be
lower if sales charges were included. For complete performance
information, see pages 4 and 5 of this report to shareholders.)
The Fund's underperformance relative to the unmanaged MSCI World
Stock Index during the quarter ended November 30, 1998 reflected our
underweighting in the US market and the lack of any exposure to many
of the Asian countries that experienced strong recoveries in their
stock markets and currency values during the same three-month
period. However, we have performed well compared to other actively
managed portfolios. The total return for the Lipper Analytical
Services' Global Funds Average was +13.45% for the November quarter.
On a one-year comparison basis, Merrill Lynch Global Growth Fund,
Inc. continues to have very favorable comparisons on a total return
basis to this performance benchmark, which was +10.56%.
We believe our diversification and successful stock selection across
a wide range of industries was reflected in the significant overall
positive investment return of the Fund. The most significant
investment returns for the Fund during the November quarter came
from holdings in the retailing, banking and financial,
telecommunications, insurance and pharmaceutical industries. By the
close of the November quarter, seven of the Fund's top ten equity
holdings had experienced stock price appreciation in excess of the
total return of the unmanaged MSCI World Stock Index. Cisco Systems,
Inc., the Fund's second-largest holding at 2.6% of net assets, had
the highest appreciation at 38%. The Fund's best-performing
industries were among our top five industry weightings. These
included banking and financial at 16.1% of net assets at November
30, 1998, telecommunications at 11.9%, insurance at 11.1%,
pharmaceuticals at 9.0% and retail stores at 7.2%. (For complete
listings of the Fund's ten largest industries and ten largest
holdings, see page 1 of this report to shareholders.)
The Environment
We anticipate that the US economy will experience the strongest
absolute and relative real economic growth into 1999. We expect the
United Kingdom and the leading countries of Western Europe to slide
into recession or much slower real growth than the US economy in the
first half of 1999. Declines in export shipments to Asia and the
related increases in manufacturing unemployment are expected to hurt
the overall European economies much more significantly than the US
economy. We believe that the consumer sectors of the Asian
economies, including Japan, will remain in recession through the
first half of 1999. Recessions are likely to appear in Latin America
as a result of the severely restrictive fiscal policy being imposed
by the Brazilian government under the most recent International
Monetary Fund stabilization program.
Our expectations for the macroeconomic outlook have guided our
industry strategy. Consequently, our largest industry weightings in
banking and financial, telecommunications, insurance and
pharmaceuticals--which together equal more than 48% of net assets--
reflect our outlook for a global slowdown in real growth, with
emerging recessions in Europe and Latin America and continuing
recessions in Asia. We anticipate that the best overall corporate
profits results will come from US-based corporations, with the least
profitability from energy, natural resource and commodity-oriented
manufacturing companies. We could have a prolonged manufacturing
sector recession in the United States and Europe similar to the one
that occurred in the early 1980s. We believe that there are many
attractive investment opportunities in companies that are shielded
from inexpensive imports because they are providing proprietary
services, technological products and services or branded consumer
products. The relatively low level of interest rates, relatively
high rates of return on equity of many companies, rising labor
productivity, improving returns on investment in new computer and
communications systems, relatively modest levels of inflation and
political movements toward more pro-growth monetary and fiscal
policies among the developed countries of the world create an
attractive secular outlook for investment in equities, in our
opinion.
Investment Strategy
Our investment strategy did not change significantly during the
November quarter. We made further modest reductions in the cyclical
growth sectors of the Fund. During the November quarter, we
eliminated four holdings. We sold Alcatel Alsthom Cie Generale
d'Electricite S.A. after a report of disappointing operating results
and a forecast of an unfavorable business outlook for 1999. We
eliminated Hewlett-Packard Company because we anticipated a
continued deterioration in the company's rates of return, largely a
result of a decline in the profitability of the very important test
and measurement division. We sold NEC Corporation because of what we
viewed as the dimming likelihood that the company will make much
headway in improving its profitability in the increasingly
competitive personal computer, workstation and server computer
markets. Finally, we eliminated PolyGram N.V. because of its
valuation, which was a result of the pending acquisition by The
Seagram Company, Ltd., and declines in the recorded music business
in Asia and Latin America.
We made several additions to the portfolio. We purchased shares of
two major Italian banks, Banca di Roma and Unicredito Italiano
S.p.A., at attractive valuations after the stocks had been sold down
in the August/September declines in world markets. We added CBS
Corporation because of the company's apparently attractive valuation
and the possibility of much-improved returns as new management
restructures the organization. We purchased shares of the Federal
Home Loan Mortgage Corp. because of its attractive valuation and
prospects for continued above-average growth in earnings from
ongoing residential mortgage financing in the US market. Sprint PCS
Group is a distribution to shareholders of the wireless
communication subsidiary of Sprint Corporation. We believe it is an
attractive holding. We added Rhone-Poulenc S.A. because of its
attractive valuation and the prospects for improved returns through
a restructuring and/or merger with another large corporation. We
initiated a position in Societe Television Francaise 1 because of
the attractive valuation and the positive outlook for the company's
business in France. Tommy Hilfiger Corporation is one of the most
successful specialty apparel retailers in the US market with a
broadening licensing franchise globally. We believe that the outlook
for above-average growth and improving returns is attractive.
In Conclusion
Merrill Lynch Global Growth Fund, Inc.'s investment returns for its
first 12 months in operation were higher than broad benchmarks such
as the unmanaged MSCI World Stock Index, which had a return of
+19.99%. While the investment environment has been turbulent, we
maintained a relatively fully invested policy in stocks throughout
the year. We believe that there will be many opportunities to make
attractive equity investments in the year ahead, and plan to
maintain a fully invested position. We will also continue to focus
on the developed equity markets around the world.
We thank you for your investment in Merrill Lynch Global Growth
Fund, Inc., and we look forward to updating you on our investment
strategy and portfolio changes in the upcoming semi-annual report to
shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Lawrence R. Fuller)
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
January 7, 1999
Merrill Lynch Global Growth Fund, Inc., November 30, 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 auto-matic 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 "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 12 Month Since Inception
Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Growth Fund, Inc. Class A Shares +14.84% +26.20% +23.80%
ML Global Growth Fund, Inc. Class B Shares +14.61 +24.90 +22.40
ML Global Growth Fund, Inc. Class C Shares +14.61 +24.90 +22.40
ML Global Growth Fund, Inc. Class D Shares +14.88 +25.89 +23.50
<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>
Aggregate
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Inception (10/31/97) through 9/30/98 +6.00% +0.44%
[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 9/30/98 +5.00% +1.00%
[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 9/30/98 +5.00% +4.00%
[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 9/30/98 +5.70% +0.15%
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PORTFOLIO CHANGES
For the Quarter Ended November 30, 1998
Additions
Banca di Roma
CBS Corporation
Federal Home Loan Mortgage Corp.
Rhone-Poulenc S.A.
Societe Television Francaise 1
Sprint PCS
Tommy Hilfiger Corporation
Unicredito Italiano S.p.A.
Deletions
Alcatel Alsthom Cie Generale d'Electricite S.A.
Hewlett-Packard Company
NEC Corporation
PolyGram N.V.
Merrill Lynch Global Growth Fund, Inc., November 30, 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 & 380,000 Bank of Montreal $ 17,744,280 $ 16,024,845 0.8%
Financial 700,000 Canadian Imperial Bank of Commerce 21,401,590 15,491,991 0.7
500,000 National Bank of Canada 7,419,127 7,796,666 0.4
300,000 Royal Bank of Canada 16,480,599 14,808,761 0.7
-------------- -------------- ------
63,045,596 54,122,263 2.6
Beverages 50,000 The Seagram Company Ltd. 2,126,452 1,715,625 0.1
Communications 25,000 Newbridge Networks Corporation 972,021 735,534 0.0
Equipment 20,000 Northern Telecom Ltd. 957,137 937,561 0.1
-------------- -------------- ------
1,929,158 1,673,095 0.1
Telecommunications 300,000 MetroNet Communications Corp. (Class B) 8,702,918 7,931,250 0.4
Total Investments in Canada 75,804,124 65,442,233 3.2
United Advertising 85,000 Interpublic Group of Companies, Inc. 4,101,446 5,843,750 0.3
States
Banking & 154,000 Bank One Corporation 7,522,284 7,902,125 0.4
Financial 480,000 BankAmerica Corporation 32,465,548 31,290,000 1.5
252,500 Citigroup Inc. 14,403,916 12,672,344 0.6
245,000 Mellon Bank Corporation 14,865,018 15,419,687 0.8
180,000 State Street Corporation 10,395,954 12,352,500 0.6
-------------- -------------- ------
79,652,720 79,636,656 3.9
Beverages 275,000 The Coca-Cola Company 22,543,677 19,267,187 0.9
Broadcasting-- 150,000 CBS Corporation 3,783,358 4,471,875 0.2
Radio & Television 140,000 Chancellor Media Corporation 6,115,906 5,276,250 0.3
240,000 Clear Channel Communications, Inc. 10,371,945 11,220,000 0.5
-------------- -------------- ------
20,271,209 20,968,125 1.0
Chemicals 310,000 duPont (E.I.) de Nemours & Company 20,869,711 18,212,500 0.9
Communications 30,000 Ascend Communications, Inc. 1,405,823 1,683,750 0.1
Equipment 705,000 Cisco Systems, Inc. 31,682,031 53,139,375 2.6
50,000 FORE Systems, Inc. 858,380 756,250 0.1
30,000 Lucent Technologies, Inc. 1,284,023 2,581,875 0.1
-------------- -------------- ------
35,230,257 58,161,250 2.9
Computers 925,000 COMPAQ Computer Corporation 31,574,465 30,062,500 1.5
150,000 Dell Computer Corporation 7,152,797 9,112,500 0.4
50,000 Network Appliance, Inc. 2,747,090 3,756,250 0.2
-------------- -------------- ------
41,474,352 42,931,250 2.1
Cosmetics 220,000 The Gillette Company 10,104,061 10,106,250 0.5
20,000 International Flavors &
Fragrances, Inc. 968,044 837,500 0.0
-------------- -------------- ------
11,072,105 10,943,750 0.5
Electrical Equipment 35,000 Emerson Electric Co. 1,975,075 2,275,000 0.1
375,000 General Electric Company 27,679,379 33,937,500 1.7
10,000 Honeywell, Inc. 710,689 799,375 0.0
-------------- -------------- ------
30,365,143 37,011,875 1.8
Electronics 270,000 Intel Corporation 21,448,927 29,041,875 1.4
10,000 Texas Instruments Inc. 599,435 763,750 0.1
-------------- -------------- ------
22,048,362 29,805,625 1.5
Energy 250,000 El Paso Energy Corporation 8,705,541 8,531,250 0.4
30,000 Enron Corporation 1,153,386 1,576,875 0.1
-------------- -------------- ------
9,858,927 10,108,125 0.5
Entertainment 35,000 Viacom, Inc. (Class B) 1,088,787 2,329,687 0.1
450,000 The Walt Disney Company 14,343,318 14,484,375 0.7
-------------- -------------- ------
15,432,105 16,814,062 0.8
Financial Services 40,000 American Express Company 3,224,880 4,002,500 0.2
80,000 Federal Home Loan Mortgage Corp. 4,690,648 4,840,000 0.2
150,000 Federal National Mortgage Association 9,089,626 10,912,500 0.5
100,000 Franklin Resources, Inc. 5,500,811 4,275,000 0.2
100,000 Morgan Stanley, Dean Witter,
Discover & Co. 6,021,422 6,975,000 0.4
-------------- -------------- ------
28,527,387 31,005,000 1.5
Food 40,000 Albertson's, Inc. 1,564,107 2,282,500 0.1
Merchandising 50,000 Meyer (Fred), Inc. 1,566,135 2,543,750 0.1
-------------- -------------- ------
3,130,242 4,826,250 0.2
Foods 40,000 ConAgra, Inc. 1,360,116 1,257,500 0.1
35,000 Wrigley (Wm.) Jr. Company 2,610,412 3,084,375 0.1
-------------- -------------- ------
3,970,528 4,341,875 0.2
Home Furnishings 175,000 Ethan Allen Interiors, Inc. 8,275,521 6,912,500 0.3
Hotels 125,000 Marriott International, Inc.
(Class A) 4,268,224 3,671,875 0.2
Household Products 32,000 Colgate-Palmolive Company 2,092,198 2,740,000 0.1
20,000 Kimberly-Clark Corporation 1,056,650 1,052,500 0.1
60,000 The Procter & Gamble Company 4,312,704 5,257,500 0.3
-------------- -------------- ------
7,461,552 9,050,000 0.5
Information 96,000 America Online, Inc. 4,310,300 8,406,000 0.4
Processing 155,000 First Data Corporation 4,599,284 4,136,562 0.2
-------------- -------------- ------
8,909,584 12,542,562 0.6
Insurance 10,000 Aetna Inc. 737,856 773,125 0.0
225,000 American International Group, Inc. 15,884,252 21,150,000 1.1
-------------- -------------- ------
16,622,108 21,923,125 1.1
Medical Technology 10,000 Boston Scientific Corporation 509,924 495,000 0.0
20,000 Guidant Corporation 1,258,388 1,716,250 0.1
25,000 Johnson & Johnson 1,503,390 2,031,250 0.1
-------------- -------------- ------
3,271,702 4,242,500 0.2
Oil Services 50,000 Baker Hughes, Inc. 2,319,315 915,625 0.1
25,000 Diamond Offshore Drilling, Inc. 998,687 559,375 0.0
18,000 Schlumberger Ltd. 1,682,222 804,375 0.0
-------------- -------------- ------
5,000,224 2,279,375 0.1
</TABLE>
Merrill Lynch Global Growth Fund, Inc., November 30, 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 Pharmaceuticals 25,000 Amgen, Inc. $ 1,328,783 $ 1,878,125 0.1%
States 180,000 Bristol-Myers Squibb Co. 17,977,083 22,061,250 1.1
(concluded) 150,000 Merck & Co., Inc. 14,783,287 23,231,250 1.1
400,000 Pfizer Inc. 37,659,850 44,650,000 2.2
-------------- -------------- ------
71,749,003 91,820,625 4.5
Photography 13,000 Eastman Kodak Company 815,032 943,312 0.1
Pollution Control 14,500 Waste Management, Inc. 505,400 621,688 0.0
Publishing 140,000 Gannett Co., Inc. 9,998,409 9,038,750 0.5
Restaurants 50,000 McDonald's Corporation 2,743,040 3,503,125 0.2
Retail Stores 100,000 Federated Department Stores, Inc. 4,964,030 4,168,750 0.2
640,000 Wal-Mart Stores, Inc. 29,396,296 48,200,000 2.4
-------------- -------------- ------
34,360,326 52,368,750 2.6
Semiconductors 60,000 Applied Materials, Inc. 1,820,628 2,325,000 0.1
Software--Computer 340,000 Microsoft Corporation 31,764,740 41,480,000 2.1
410,000 PeopleSoft, Inc. 17,472,060 8,430,625 0.4
-------------- -------------- ------
49,236,800 49,910,625 2.5
Specialty 100,000 Abercrombie & Fitch Co. (Class A) 5,070,389 5,600,000 0.3
Retailing 400,000 CVS Corporation 14,726,207 19,750,000 1.0
170,000 The Gap, Inc. 8,580,501 12,505,625 0.6
760,000 Staples, Inc. 18,257,636 26,505,000 1.3
50,000 Tommy Hilfiger Corporation 2,700,735 3,025,000 0.2
165,000 Walgreen Co. 4,931,107 8,858,437 0.4
-------------- -------------- ------
54,266,575 76,244,062 3.8
Telecommunications 160,000 AT&T Corp. 10,434,749 9,970,000 0.5
500,000 GTE Corporation 28,881,847 31,000,000 1.5
325,000 MCI WorldCom, Inc. 15,203,420 19,154,687 0.9
390,000 Sprint Corporation 23,856,129 28,372,500 1.4
300,000 Sprint PCS 4,895,525 4,800,000 0.2
-------------- -------------- ------
83,271,670 93,297,187 4.5
Toys 200,000 Mattel, Inc. 7,823,472 6,912,500 0.3
Travel & Lodging 330,000 Carnival Corporation (Class A) 10,492,275 11,385,000 0.6
Total Investments in the
United States 729,439,716 848,869,841 41.7
Total Investments in North America 805,243,840 914,312,074 44.9
PACIFIC BASIN
Japan Automobiles 480,000 Honda Motor Co., Ltd. 17,468,820 17,243,173 0.9
500,000 Toyota Motor Corporation 13,656,899 12,678,804 0.6
-------------- -------------- ------
31,125,719 29,921,977 1.5
Computers 700,000 Fujitsu Ltd. 7,951,104 8,090,052 0.4
Leisure 20,000 Sony Corporation 1,813,988 1,464,564 0.1
Office Equipment 25,000 Canon, Inc. 561,859 552,666 0.0
Photography 50,000 Fuji Photo Film Co., Ltd. 1,994,128 1,869,311 0.1
Retail 250,000 Ito-Yokado Co., Ltd. 13,794,985 15,279,584 0.7
Telecommunications 3,000 Nippon Telegraph & Telephone
Corporation (NTT) 26,362,868 22,431,730 1.1
Total Investments in the
Pacific Basin 83,604,651 79,609,884 3.9
WESTERN EUROPE
Denmark Telecommunications 150,000 Tele Danmark A/S (Class B) 11,610,765 16,809,339 0.8
Total Investments in Denmark 11,610,765 16,809,339 0.8
Finland Communications 60,000 Nokia Oyj (Class A) 2,745,757 5,872,167 0.3
Equipment
Total Investments in Finland 2,745,757 5,872,167 0.3
France Broadcasting & 10,000 Societe Television Francaise 1 1,820,322 1,754,912 0.1
Publishing
Cosmetics 5,000 L'OREAL S.A. 1,869,813 3,122,685 0.2
Electrical Equipment 25,000 Alstom 852,037 586,881 0.0
Electronics 25,000 STMicroelectronics N.V. 2,254,859 1,754,912 0.1
Foods 40,000 Groupe Danone 8,680,689 11,711,171 0.6
20,000 Promodes S.A. 9,236,088 13,118,629 0.6
-------------- -------------- ------
17,916,777 24,829,800 1.2
Information 200,000 Cap Gemini S.A. 17,173,476 29,348,478 1.4
Processing
Insurance 165,000 AXA--UAP 11,694,023 21,389,643 1.1
Pharmaceuticals 50,000 Rhone-Poulenc S.A. 2,419,376 2,500,088 0.1
Retail Stores 30,000 Carrefour S.A. 17,681,298 21,297,048 1.0
Total Investments in France 73,681,981 106,584,447 5.2
Germany Apparel 50,000 Adidas-Salomon AG 8,340,102 5,471,754 0.3
Automobiles 201,000 DaimlerChrysler AG 19,112,541 18,940,728 0.9
Banking & 600,000 Commerzbank AG 21,297,933 19,804,791 1.0
Financial 350,000 Deutche Bank AG 23,047,332 21,677,019 1.1
525,000 Dresdner Bank AG 22,202,477 23,602,484 1.1
-------------- -------------- ------
66,547,742 65,084,294 3.2
Chemicals 150,000 BASF AG 5,213,865 5,696,539 0.3
150,000 Bayer AG 5,341,904 6,175,688 0.3
300,000 Hoechst AG 14,182,600 12,919,255 0.6
-------------- -------------- ------
24,738,369 24,791,482 1.2
Electronics 300,000 Siemens AG 20,165,738 20,940,550 1.0
Insurance 66,911 Allianz AG 17,351,225 24,163,955 1.2
Multi-Industry 80,000 Mannesman AG 7,163,790 8,683,821 0.4
175,000 VEBA AG 11,173,578 9,730,849 0.5
-------------- -------------- ------
18,337,368 18,414,670 0.9
Retail Stores 250,000 Metro AG 11,962,548 15,638,864 0.8
250,000 Metro AG Rights (a) 0 536,823 0.0
-------------- -------------- ------
11,962,548 16,175,687 0.8
</TABLE>
Merrill Lynch Global Growth Fund, Inc., November 30, 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>
Germany Software--Computer 110,000 SAP AG (Systeme, Anwendungen,
(concluded) Produkte in der Datenverarbeitung)
(Preferred) $ 34,118,327 $ 57,456,374 2.8%
Total Investments in Germany 220,673,960 251,439,494 12.3
Ireland Banking & 1,300,000 Allied Irish Banks PLC 13,137,895 20,113,529 1.0
Financial
Telecommunications 100,000 Esat Telecom Group PLC (ADR)* 3,206,252 3,450,000 0.2
Total Investments in Ireland 16,344,147 23,563,529 1.2
Italy Banking & 3,500,000 Banca di Roma 6,116,713 6,074,501 0.3
Financial 1,200,000 Unicredito Italiano S.p.A. 5,819,687 6,843,111 0.3
-------------- -------------- ------
11,936,400 12,917,612 0.6
Insurance 550,000 Assicurazioni Generali S.p.A. 13,942,232 20,602,820 1.0
3,750,000 Istituto Nazionale delle
Assicurazioni S.p.A. (INA) 5,930,905 9,925,021 0.5
-------------- -------------- ------
19,873,137 30,527,841 1.5
Real Estate 3,750,000 Unione Immobiliare S.p.A. (b) 1,077,689 1,881,945 0.1
Investment Trust
Total Investments in Italy 32,887,226 45,327,398 2.2
Netherlands Household 250,000 Unilever N.V. 15,001,154 19,605,015 1.0
Products 120,000 Unilever N.V. (NY Registered Shares) 8,031,036 9,277,500 0.5
-------------- -------------- ------
23,032,190 28,882,515 1.5
Insurance 400,000 AEGON N.V. 21,905,046 42,929,081 2.1
235,000 ING Groep N.V. 10,003,319 13,497,954 0.7
-------------- -------------- ------
31,908,365 56,427,035 2.8
Leisure 30,000 Philips Electronics N.V. 2,942,792 1,904,112 0.1
Retail Stores 600,000 Koninklijke Ahold N.V. 17,678,413 20,866,555 1.0
Software--Computer 60,000 Baan Company, N.V. 2,240,629 723,877 0.0
Telecommunications 187,500 Equant N.V. 6,773,837 10,582,384 0.5
Total Investments in the Netherlands 84,576,226 119,386,478 5.9
Spain Banking & 600,000 Banco Bilbao Vizcaya, S.A. 10,292,072 9,511,229 0.5
Financial 275,000 Banco Santander, S.A. 6,347,551 5,640,339 0.3
Total Investments in Spain 16,639,623 15,151,568 0.8
Sweden Communications 50,000 Telefonaktiebolaget LM Ericsson
Equipment (Class B) 998,239 1,393,256 0.1
Total Investments in Sweden 998,239 1,393,256 0.1
Switzerland Foods 12,000 Nestle S.A. (Registered Shares) 20,005,700 25,021,570 1.2
Insurance 31,000 Zurich Allied AG 15,191,232 22,222,462 1.1
Pharmaceuticals 18,000 Novartis AG (Registered Shares) 28,480,812 33,908,542 1.7
Total Investments in Switzerland 63,677,744 81,152,574 4.0
United Banking & 875,000 Barclays PLC 22,582,208 19,853,969 1.0
Kingdom Financial 250,000 HSBC Holdings PLC 7,588,742 6,765,820 0.3
2,000,000 Lloyds TSB Group PLC 25,390,195 27,805,870 1.4
1,500,000 National Westminster Bank PLC
(Ordinary) 22,162,632 27,376,818 1.3
-------------- -------------- ------
77,723,777 81,802,477 4.0
Broadcast--Media 1,300,000 British Sky Broadcasting Group PLC 8,212,658 10,747,753 0.5
Chemicals 50,000 Imperial Chemical Industries PLC 753,608 462,056 0.0
Electrical 150,000 Siebe PLC 752,323 539,615 0.0
Equipment
Household 750,000 Unilever PLC 5,692,608 7,803,383 0.4
Products
Information 1,040,000 Reuters Group PLC 13,444,894 10,048,398 0.5
Processing
Insurance 1,000,000 CGU PLC 14,287,623 15,858,422 0.8
2,500,000 Guardian Royal Exchange PLC 14,020,735 13,614,150 0.7
2,000,000 Royal & Sun Alliance
Insurance Group PLC 20,023,591 16,700,024 0.8
-------------- -------------- ------
48,331,949 46,172,596 2.3
Pharmaceuticals 900,000 Glaxo Wellcome PLC 25,119,090 28,470,901 1.4
575,000 SmithKline Beecham PLC 5,491,124 7,059,556 0.3
475,000 Zeneca Group PLC 18,511,639 19,752,894 1.0
-------------- -------------- ------
49,121,853 55,283,351 2.7
Publishing 250,000 Pearson PLC 3,653,585 4,496,795 0.2
Retail Stores 750,000 The Boots Company PLC 11,223,919 12,104,217 0.6
100,000 J Sainsbury PLC 847,793 837,477 0.0
1,499,200 Somerfield PLC 9,606,795 11,330,828 0.6
4,200,000 Tesco PLC 11,323,155 12,406,204 0.6
-------------- -------------- ------
33,001,662 36,678,726 1.8
Telecommuni- 2,800,000 COLT Telecom Group PLC 9,536,664 36,594,835 1.8
cations 1,250,000 Cable & Wireless PLC 16,911,329 15,883,175 0.8
2,500,000 Vodafone Group PLC 17,949,999 36,923,225 1.8
-------------- -------------- ------
44,397,992 89,401,235 4.4
Total Investments in the
United Kingdom 285,086,909 343,436,385 16.8
Total Investments in
Western Europe 808,922,577 1,010,116,635 49.6
Total Investments $1,697,771,068 2,004,038,593 98.4
==============
Other Assets Less Liabilities 33,466,496 1.6
-------------- ------
Net Assets $2,037,505,089 100.0%
============== ======
Net Asset Value: Class A--Based on net assets of $89,736,656
and 7,247,739 shares outstanding $ 12.38
==============
Class B--Based on net assets of $1,429,482,981
and 116,743,441 shares outstanding $ 12.24
==============
Class C--Based on net assets of $277,695,159
and 22,680,065 shares outstanding $ 12.24
==============
Class D--Based on net assets of $240,590,293 and
19,485,176 shares outstanding $ 12.35
==============
<FN>
*American Depositary Receipts (ADR).
(a)The rights may be exercised until 12/07/1998.
(b)Unione Immobiliare S.p.A. was a distribution from Istituto
Nazionale delle Assicurazioni S.p.A. (INA).
</TABLE>
