MERRILL LYNCH
GLOBAL GROWTH
FUND, INC.
FUND LOGO
Annual Report
August 31, 2000
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Statements and other information herein are as dated and are subject
to change.
Merrill Lynch
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
August 31, 2000
Percent of
Ten Largest Industries Net Assets
Communications Equipment 11.4%
Wireline Communication 10.7
Energy 8.6
Wireless Communication 7.4
Computers 6.9
Information Processing 6.8
Insurance 4.9
Oil Services 4.5
Electronics 4.3
Chemicals 3.1
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Nortel Networks Corporation Canada 5.1%
Sun Microsystems, Inc. United States 4.7
Cisco Systems, Inc. United States 4.6
Vodafone AirTouch PLC United Kingdom 3.7
Exodus Communications, Inc. United States 3.2
Enron Corp. United States 3.1
NTT Mobile Communications
Network, Inc. Japan 2.9
COLT Telecom Group PLC United Kingdom 2.9
STMicroelectronics NV France 2.9
General Electric Company United States 2.5
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
DEAR SHAREHOLDER
Fiscal Year in Review
For the year ended August 31, 2000, Merrill Lynch Global Growth
Fund, Inc.'s Class A, Class B, Class C and Class D Shares had total
returns of +41.47%, +40.04%, +40.05% and +41.18%, 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 - 6 of this report to
shareholders.) The total returns for the Fund were well ahead of the
Lipper Analytical Services, Inc.'s Global Funds Average return of
+24.41% for the same 12-month period. Also, the Fund's returns
outperformed the unmanaged Morgan Stanley Capital International
(MSCI) World Stock Index (in US dollars), which had a return of
+13.12%.
The Fund's positive absolute and relative investment performance was
the result of a change in our investment strategy at the start of
the fiscal year ended August 31, 2000. We shifted equity holdings
from banks and financial service companies, insurance companies,
pharmaceuticals, retailers and consumer staple goods companies to
companies in the communications equipment, electronics and wireless
communication services industries. We maintained a significant
investment exposure in communications equipment companies for most
of the fiscal year ended August 31, 2000. Eight of the top ten
equity investments in the Fund at fiscal year end August 31, 2000
contributed meaningfully to the positive absolute and relative
investment performance during the fiscal year. These eight
companies, which reflect the focus on the communications equipment
industry, were: Nortel Networks Corporation, Sun Microsystems, Inc.,
Cisco Systems, Inc., Enron Corp., NTT Mobile Communications Network,
Inc., COLT Telecom Group PLC, STMicroelectronics NV and General
Electric Company. We have kept an overall weighting in technology
companies of 45% - 50% of net assets for most of the fiscal year
ended August 31, 2000. Near the end of August 2000, we reduced our
investment weighting in the technology sector. However, the Fund has
a meaningful weighting in the technology sector relative to the
weighting in the MSCI World Stock Index. We continue to focus on
corporations that we believe are the leading suppliers of computers,
software and electronic components and communications equipment for
the rapidly growing Internet communication infrastructure around the
world. We believe the Internet is becoming a more important
communication pathway for wireless subscribers as well as wireline
customers.
Market Outlook
In our opinion, the tightening of monetary policy of central banks
around the world since late June 1999 has accomplished the objective
of slowing the rate of growth of real consumer spending in the major
economies. The continued upturn in energy prices is an additional
restraint on the real growth of consumer spending in that the demand
for energy is relatively insensitive to increases in nominal prices.
Consumers tend to spend less on other goods and services. In the US
economy, it appears that the real level of spending by consumers on
housing, appliances, furniture and motor vehicles is flat-to-down
relative to year-ago levels. It does not appear to us that overall
price inflation is going to accelerate, although the demand for
employees in the service sector of the US economy is strong and
higher energy prices are raising the prices of goods and services.
Consequently, we are looking for a gradual slowdown in the rate of
real growth with modest levels of overall price inflation.
We believe that overall real rates of growth will slow more in the
United States than they will in Continental Europe and Japan. The
rates of real growth in capital investment on Internet communication
infrastructure and new generation wireless infrastructure appear to
be continuing at a relatively rapid pace. However, the pace may slow
down for a period of time as companies go through the process of
substantial public financings, which are required in some cases to
fund the capital investments. In our opinion, the major equity
markets around the world are in a gradual uptrend from the declines
that took place in the second calendar quarter of 2000.
In Conclusion
We thank you for your investment in Merrill Lynch Global Growth
Fund, Inc., and we look forward to sharing with you our investment
results and strategy in our upcoming semi-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
September 28, 2000
<TABLE>
PROXY RESULTS
<CAPTION>
During the six-month period ended August 31, 2000, Merrill Lynch
Global Growth Fund, Inc.'s shareholders voted on the following
proposals. The proposals were approved at a shareholders' meeting on
July 17, 2000. The description of each proposal and number of shares
voted are as follows:
Shares Voted
For
<S> <S> <C>
1. To elect the Fund's Board of Directors: Terry K. Glenn 190,460,032
M. Colyer Crum 190,431,998
Laurie S. Hodrick 190,460,439
Jack S. Sunderland 190,413,189
Stephen B. Swensrud 190,450,322
J. Thomas Touchton 190,481,479
Fred G. Weiss 190,476,469
Arthur Zeikel 190,387,616
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Ernst & Young LLP as the Fund's independent
auditors for the current fiscal year. 185,068,703 2,349,416 6,541,547
3. To convert the Fund to "master/feeder" structure. 174,056,030 6,331,693 13,571,943
</TABLE>
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after approximately 8 years. (There is no initial
sales charge for automatic share conversions.)
* Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. Figures shown in the "Recent Performance
Results" and "Average Annual Total Return" tables assume
reinvestment of all dividends and capital gains distributions at net
asset value on the ex-dividend date. Investment return and principal
value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Dividends paid to each
class of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
Total Return
Based on a $10,000
Investment
A line graph illustrating the growth of ML Global Growth Fund, Inc.
Class A and Class B Shares in comparison to the MSCI World Index.
Beginning and ending dates are:
10/31/97** 8/00
ML Global Growth Fund++--
Class A Shares* $ 9,600 $18,562
ML Global Growth Fund++--
Class B Shares* $10,000 $18,835
MSCI World Index $10,000 $15,638
A line graph illustrating the growth of ML Global Growth Fund, Inc.
Class C and Class D Shares in comparison to the MSCI World Index.
Beginning and ending dates are:
10/31/97** 8/00
ML Global Growth Fund++--
Class C Shares* $10,000 $19,030
ML Global Growth Fund++--
Class D Shares* $ 9,600 $18,437
MSCI World Index $10,000 $15,638
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++MLGlobal Growth Fund, Inc. invests primarily in equity securities
with a particular emphasis on companies that have exhibited above-
average growth rates in earnings.
++++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.
Past performance is not predictive of future performance.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
One Year Ended 6/30/00 +32.37% +25.42%
Inception (10/31/97) through 6/30/00 +26.35 +23.82
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
One Year Ended 6/30/00 +31.03% +27.03%
Inception (10/31/97) through 6/30/00 +25.07 +24.55
*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*
One Year Ended 6/30/00 +30.95% +29.95%
Inception (10/31/97) through 6/30/00 +25.06 +25.06
*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*
One Year Ended 6/30/00 +31.98% +25.05%
Inception (10/31/97) through 6/30/00 +26.03 +23.50
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
6 Month 12 Month Since Inception
As of August 31, 2000 Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Growth Fund, Inc. Class A Shares -5.76% +41.47% +95.91%
ML Global Growth Fund, Inc. Class B Shares -6.23 +40.04 +90.35
ML Global Growth Fund, Inc. Class C Shares -6.23 +40.05 +90.30
ML Global Growth Fund, Inc. Class D Shares -5.82 +41.18 +94.59
*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>
<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 Communications 2,190,000 Nortel Networks Corporation $ 130,742,508 $ 178,576,999 5.1%
Equipment
Wireline 700,000 ++AT&T Canada Inc. 10,722,390 23,231,250 0.7
Communication 1,650,000 ++Rogers Communications, Inc. 'B' 31,362,294 40,726,928 1.1
-------------- -------------- ------
42,084,684 63,958,178 1.8
Total Investments in Canada 172,827,192 242,535,177 6.9
United Advertising 270,000 The Interpublic Group of
States Companies, Inc. 7,857,120 10,327,500 0.3
Biotechnology 210,000 ++Affymetrix, Inc. 17,152,599 16,603,125 0.5
945,000 ++Immunex Corporation 35,158,216 47,427,187 1.3
-------------- -------------- ------
52,310,815 64,030,312 1.8
Broadcasting-- 300,000 ++Infinity Broadcasting
Media Corporation (Class A) 6,563,160 11,362,500 0.3
Broadcasting-- 230,000 ++AMFM Inc. 10,540,018 15,647,475 0.4
Radio &Television
Communications 780,000 ++3Com Corporation 5,713,963 12,918,750 0.4
Equipment 2,363,400 ++Cisco Systems, Inc. 28,439,289 162,336,037 4.6
-------------- -------------- ------
34,153,252 175,254,787 5.0
Computer Software 830,000 ++Commerce One, Inc. 45,205,966 51,978,750 1.5
130,000 ++Rational Software Corporation 9,982,027 16,721,250 0.5
-------------- -------------- ------
55,187,993 68,700,000 2.0
Computers 350,000 ++EMC Corporation 11,367,700 34,300,000 1.0
1,320,000 ++Sun Microsystems, Inc. 57,140,068 167,557,500 4.7
-------------- -------------- ------
68,507,768 201,857,500 5.7
Electrical 1,500,000 General Electric Company 49,182,508 88,031,250 2.5
Equipment
Electronics 450,000 ++LSI Logic Corporation 12,459,484 16,171,875 0.5
Energy 250,000 Anadarko Petroleum Corporation 14,660,562 16,442,500 0.5
500,000 El Paso Energy Corporation 18,280,128 29,125,000 0.8
1,274,000 Enron Corp. 49,555,997 108,130,750 3.1
465,000 Tosco Corporation 14,243,794 14,182,500 0.4
-------------- -------------- ------
96,740,481 167,880,750 4.8
Entertainment 500,000 ++Viacom, Inc. (Class B) 24,994,541 33,656,250 1.0
350,000 The Walt Disney Company 10,436,255 13,628,125 0.4
-------------- -------------- ------
35,430,796 47,284,375 1.4
Financial Services 660,000 T. Rowe Price Associates, Inc. 24,841,972 29,865,000 0.8
Information 820,000 ++America Online, Inc. 29,500,050 48,072,500 1.4
Processing 1,650,000 ++Exodus Communications, Inc. 83,387,880 112,921,875 3.2
1,296,902 ++Palm, Inc. 24,415,874 56,982,632 1.6
-------------- -------------- ------
137,303,804 217,977,007 6.2
Insurance 1,153,700 Lincoln National Corporation 56,437,185 62,299,800 1.8
Oil Services 375,000 Baker Hughes Incorporated 13,202,965 13,710,937 0.4
400,000 Diamond Offshore Drilling, Inc. 17,812,780 17,925,000 0.5
650,000 Halliburton Company 33,434,475 34,450,000 1.0
693,000 Schlumberger Limited 54,475,900 59,121,562 1.7
375,000 ++Weatherford International, Inc. 16,663,416 17,601,563 0.5
-------------- -------------- ------
135,589,536 142,809,062 4.1
Pharmaceuticals 285,000 Merck & Co., Inc. 13,807,899 19,914,375 0.5
545,000 Pfizer Inc. 15,062,695 23,571,250 0.7
-------------- -------------- ------
28,870,594 43,485,625 1.2
Restaurants 270,000 McDonald's Corporation 9,375,505 8,066,250 0.2
Retail 280,000 ++Amazon.com, Inc. 22,321,377 11,620,000 0.3
175,000 ++Staples, Inc. 3,047,404 2,690,625 0.1
-------------- -------------- ------
25,368,781 14,310,625 0.4
Wireless 320,000 ++Sprint Corp. (PCS Group) 16,152,211 16,060,000 0.4
Communication 40,000 ++Western Wireless Corporation
(Class A) 2,284,105 2,045,000 0.1
-------------- -------------- ------
18,436,316 18,105,000 0.5
Wireline 1,259,600 ++Infonet Services Corporation
Communication (Class B) 18,581,748 16,453,525 0.5
1,100,000 ++NorthPoint Communications
Group, Inc. 31,441,893 12,512,500 0.3
307,500 ++WorldCom, Inc. 10,007,100 11,223,750 0.3
-------------- -------------- ------
60,030,741 40,189,775 1.1
Total Investments in the
United States 925,187,829 1,443,656,468 41.0
Total Investments in
North America 1,098,015,021 1,686,191,645 47.9
</TABLE>
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
PACIFIC Shares Percent of
BASIN Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Australia Wireless 4,000,000 ++Cable & Wireless Optus
Communication Limited $ 8,573,805 $ 10,677,744 0.3%
Total Investments in Australia 8,573,805 10,677,744 0.3
Japan Automobiles 100,000 Honda Motor Co., Ltd. 3,737,654 3,657,164 0.1
750,000 Toyota Motor Corporation 22,472,243 32,633,158 0.9
-------------- -------------- ------
26,209,897 36,290,322 1.0
Computers 1,500,000 Fujitsu Limited 45,437,246 43,463,991 1.2
Leisure 440,000 Sony Corporation 32,578,810 49,099,775 1.4
Office Equipment 25,000 Canon, Inc. 561,859 1,118,248 0.0
Photography 50,000 Fuji Photo Film 1,994,128 1,791,073 0.1
Semiconductors 275,000 Tokyo Electron Limited 35,398,578 38,629,970 1.1
Transportation 10,000 East Japan Railway Company 61,589,436 54,388,597 1.6
Wireless 3,900 NTT Mobile Communications
Communication Network, Inc. 76,839,294 103,132,033 2.9
Wireline 5,800 Nippon Telegraph & Telephone
Communication Corporation (NTT) 66,447,635 69,073,518 2.0
Total Investments in Japan 347,056,883 396,987,527 11.3
Total Investments in the
Pacific Basin 355,630,688 407,665,271 11.6
Western
Europe
Denmark Wireline 300,000 Tele Danmark A/S 11,610,765 18,064,747 0.5
Communication
Total Investments in Denmark 11,610,765 18,064,747 0.5
France Banking & Financial 164,300 Credit Lyonnais 4,382,144 6,646,600 0.2
Broadcasting & 450,000 Societe Television Francaise 1 11,729,787 32,847,800 0.9
Publishing
Chemicals 875,093 Aventis SA 56,475,640 65,578,071 1.9
Cosmetics 50,000 L'Oreal SA 1,869,813 3,618,637 0.1
Electronics 1,650,000 STMicroelectronics NV 39,838,865 101,224,035 2.9
Energy 350,000 Total Fina SA 'B' 55,276,591 51,999,014 1.5
Foods 40,000 Groupe Danone 4,591,628 5,469,743 0.1
Insurance 225,000 Axa 30,783,213 32,067,614 0.9
Retail Stores 120,000 Carrefour SA 5,808,809 8,759,413 0.3
Total Investments in France 210,756,490 308,210,927 8.8
Germany Apparel 50,000 Adidas-Salomon AG 8,340,102 2,689,528 0.1
Banking & Financial 750,000 Dresdner Bank AG
(Registered Shares) 34,525,797 33,874,710 1.0
Chemicals 125,000 BASF AG 4,344,888 4,690,003 0.1
290,000 Bayer AG 10,951,491 12,286,028 0.3
27,450 Celanese AG 444,297 456,388 0.0
-------------- -------------- ------
15,740,676 17,432,419 0.4
Computer Software 140,039 ++Brokat Infosystems AG 14,926,973 14,878,787 0.4
Electronics 200,000 Siemens AG 12,859,590 32,274,330 0.9
Insurance 100,000 Allianz AG (Registered Shares) 30,912,854 33,785,800 1.0
Retail Stores 1,000,000 Metro AG 50,881,959 38,053,480 1.1
Total Investments in Germany 168,187,951 172,989,054 4.9
Italy Banking & 2,000,000 Banca di Roma SpA 3,184,735 2,462,807 0.1
Financial 1,000,000 Unicredito Italiano SpA 4,682,799 5,174,562 0.1
-------------- -------------- ------
7,867,534 7,637,369 0.2
Insurance 145,000 Assicurazioni Generali 2,851,570 4,467,061 0.1
4,000,000 ++Istituto Nazionale delle
Assicurazioni SpA (INA) 6,507,926 9,495,588 0.3
-------------- -------------- ------
9,359,496 13,962,649 0.4
Television 1,000,000 Mediaset SpA 17,413,168 17,277,525 0.5
Total Investments in Italy 34,640,198 38,877,543 1.1
Netherlands Chemicals 285,000 Akzo Nobel NV 12,974,386 12,621,530 0.4
500,000 DSM NV 17,866,981 15,292,520 0.4
-------------- -------------- ------
30,841,367 27,914,050 0.8
Energy 590,000 Royal Dutch Petroleum Company 36,118,085 35,932,977 1.0
Insurance 190,000 Aegon NV 3,847,021 7,415,983 0.2
300,000 ING Groep NV 13,600,442 20,111,442 0.6
-------------- -------------- ------
17,447,463 27,527,425 0.8
Leisure 495,088 Koninklijke (Royal) Philips
Electronics NV 12,688,704 24,122,014 0.7
Semiconductors 487,900 ++ASM Lithography Holding NV 11,008,238 18,449,169 0.5
Wireline 212,500 ++Equant NV 9,040,710 8,237,512 0.3
Communication
Total Investments in the
Netherlands 117,144,567 142,183,147 4.1
Portugal Wireline 1,615,000 Portugal Telecom SA
Communication (Registered Shares) 12,881,818 16,828,707 0.5
Total Investments in Portugal 12,881,818 16,828,707 0.5
Spain Banking & Financial 600,000 Banco Bilbao Vizcaya, SA 10,260,253 8,914,117 0.3
1,100,000 Banco Santander Central
Hispano, SA 11,648,050 11,833,921 0.3
-------------- -------------- ------
21,908,303 20,748,038 0.6
Information 2,250,000 Telefonica Publicidad e
Processing Informacion, SA 14,051,000 20,404,845 0.6
Total Investments in Spain 35,959,303 41,152,883 1.2
</TABLE>
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
<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>
Sweden Communications 2,250,000 Telefonaktiebolaget LM
Equipment Ericsson AB 'B' $ 27,732,259 $ 45,422,031 1.3%
Total Investments in Sweden 27,732,259 45,422,031 1.3
Switzerland Foods 5,000 Nestle SA (Registered Shares) 7,149,841 10,771,261 0.3
Pharmaceuticals 10,000 Novartis AG (Registered Shares) 15,802,992 15,115,345 0.4
Total Investments in Switzerland 22,952,833 25,886,606 0.7
United Banking & Financial 2,500,000 HSBC Holdings PLC 32,920,763 36,047,625 1.0
Kingdom
Energy 5,000,000 BP Amoco PLC 48,734,379 45,868,875 1.3
Household Products 669,642 Unilever PLC 5,692,608 4,204,230 0.1
Pharmaceuticals 150,000 AstraZeneca Group PLC 6,217,643 6,853,050 0.2
400,000 Glaxo Wellcome PLC 12,473,697 11,529,420 0.3
835,000 SmithKline Beecham PLC 9,081,431 10,903,952 0.3
-------------- -------------- ------
27,772,771 29,286,422 0.8
Publishing 380,000 EMAP PLC 6,081,240 6,524,220 0.2
250,000 Pearson PLC 3,653,585 7,238,625 0.2
-------------- -------------- ------
9,734,825 13,762,845 0.4
Wireless 32,323,849 Vodafone AirTouch PLC 63,549,013 130,864,315 3.7
Communication
Wireline 3,000,000 ++COLT Telecom Group PLC 13,265,802 101,268,000 2.9
Communication 6,000,000 ++Energis PLC 33,415,948 54,911,700 1.6
-------------- -------------- ------
46,681,750 156,179,700 4.5
Total Investments in the
United Kingdom 235,086,109 416,214,012 11.8
Total Investments in
Western Europe 876,952,293 1,225,829,657 34.9
SHORT-TERM Face
SECURITIES Amount Issue
Commercial $115,000,000 Associates First Capital
Paper* Corp., 6.65% due 9/01/2000 115,000,000 115,000,000 3.3
107,462,000 The CIT Group Holdings,
Inc., 6.65% due 9/01/2000 107,462,000 107,462,000 3.0
Total Investments in
Short-Term Securities 222,462,000 222,462,000 6.3
Total Investments $2,553,060,002 3,542,148,573 100.7
==============
Liabilities in Excess of Other Assets (25,444,782) (0.7)
-------------- ------
Net Assets $3,516,703,791 100.0%
============== ======
++Non-income producing security.
*Commercial Paper is traded on a discount basis; the interest rates
shown reflect the discount rates paid at the time of purchase by the
Fund.
See Notes to Financial Statements.
</TABLE>>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of August 31, 2000
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$2,553,060,002) $3,542,148,573
Cash 10,008,448
Receivables:
Securities sold $ 74,876,224
Capital shares sold 4,292,866
Dividends 2,284,681 81,453,771
--------------
Prepaid registration fees and other assets 173,223
--------------
Total assets 3,633,784,015
--------------
Liabilities: Payables:
Securities purchased 105,913,131
Capital shares redeemed 5,415,680
Distributor 2,315,616
Investment adviser 1,840,097 115,484,524
--------------
Accrued expenses 1,595,700
--------------
Total liabilities 117,080,224
--------------
Net Assets: Net assets $3,516,703,791
==============
Net Assets Class A Shares of Common Stock, $.10 par value,
100,000,000 shares authorized $ 1,601,579
Consist of: Class B Shares of Common Stock, $.10 par value,
300,000,000 shares authorized 12,916,323
Class C Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 2,385,738
Class D Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 2,849,153
Paid-in capital in excess of par 2,202,923,901
Undistributed realized capital gains on investments and
foreign currency transactions--net 304,744,958
Unrealized appreciation on investments and foreign
currency transactions--net 989,282,139
--------------
Net assets $3,516,703,791
==============
Net Asset Class A--Based on net assets of $288,517,434 and 16,015,791
Value: shares outstanding $ 18.01
==============
Class B--Based on net assets of $2,293,019,438 and 129,163,230
shares outstanding $ 17.75
==============
Class C--Based on net assets of $423,799,703 and 23,857,377
shares outstanding $ 17.76
==============
Class D--Based on net assets of $511,367,216 and 28,491,533
shares outstanding $ 17.95
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended August 31, 2000
<S> <S> <C> <C>
Investment Dividends (net of $1,939,082 foreign withholding tax) $ 19,006,012
Income: Interest and discount earned 5,315,261
--------------
Total income 24,321,273
--------------
Expenses: Investment advisory fees $ 23,205,758
Account maintenance and distribution fees--Class B 21,117,180
Account maintenance and distribution fees--Class C 3,811,064
Transfer agent fees--Class B 1,921,784
Account maintenance fees--Class D 1,053,337
Custodian fees 757,716
Transfer agent fees--Class C 371,491
Transfer agent fees--Class D 319,017
Accounting services 278,765
Professional fees 190,254
Registration fees 180,395
Transfer agent fees--Class A 177,873
Printing and shareholder reports 143,243
Amortization of organization expenses--net 70,548
Directors' fees and expenses 54,764
Pricing fees 36,023
Other 66,868
--------------
Total expenses 53,756,080
--------------
Investment loss--net (29,434,807)
--------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 338,617,731
(Loss) on Foreign currency transactions--net (3,221,420) 335,396,311
Investments & --------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net 644,139,979
Foreign currency transactions--net 232,446 644,372,425
-------------- ------------
Net Increase in Net Assets Resulting from Operations $950,333,929
============
See Notes to Financial Statements.
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Year
Ended August 31,
Increase (Decrease) in Net Assets: 2000 1999
<S> <S> <C> <C>
Operations: Investment loss--net $ (29,434,807) $ (2,685,412)
Realized gain on investments and foreign currency
transactions--net 335,396,311 164,997,268
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 644,372,425 328,299,323
-------------- --------------
Net increase in net assets resulting from operations 950,333,929 490,611,179
-------------- --------------
Dividends & In excess of investment income--net:
Distributions to Class A -- (637,843)
Shareholders: Class B -- (442,017)
Class C -- --
Class D -- (1,298,285)
Realized gain on investments--net:
Class A (12,439,265) (1,299,337)
Class B (107,572,700) (20,963,417)
Class C (19,030,320) (4,032,145)
Class D (22,402,561) (3,512,417)
-------------- --------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (161,444,846) (32,185,461)
-------------- --------------
Capital Share Net increase in net assets derived from capital
Transactions: share transactions 275,853,659 190,399,619
-------------- --------------
Net Assets: Total increase in net assets 1,064,742,742 648,825,337
Beginning of year 2,451,961,049 1,803,135,712
-------------- --------------
End of year $3,516,703,791 $2,451,961,049
============== ==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
For the
Period
The following per share data and ratios have been derived Oct. 31,
from information provided in the financial statements. For the Year 1997++ to
Ended August 31, Aug. 31,
Increase (Decrease) in Net Asset Value: 2000++++ 1999++++ 1998
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.55 $ 10.78 $ 10.00
Operating ---------- ---------- ----------
Performance: Investment income (loss)--net (.02) .11 .06
Realized and unrealized gain on investments
and foreign currency transactions--net 5.51 2.93 .72
---------- ---------- ----------
Total from investment operations 5.49 3.04 .78
---------- ---------- ----------
Less dividends and distributions:
In excess of investment income--net -- (.09) --
Realized gain on investments--net (1.03) (.18) --
---------- ---------- ----------
Total dividends and distributions (1.03) (.27) --
---------- ---------- ----------
Net asset value, end of period $ 18.01 $ 13.55 $ 10.78
========== ========== ==========
Total Investment Based on net asset value per share 41.47% 28.46% 7.80%+++
Return:** ========== ========== ==========
Ratios to Average Expenses .87% .90% .98%*
Net Assets: ========== ========== ==========
Investment income (loss)--net (.09%) .88% 1.00%*
========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 288,517 $ 171,140 $ 80,525
Data: ========== ========== ==========
Portfolio turnover 75.48% 46.91% 29.67%
========== ========== ==========
<CAPTION>
Class B
For the
Period
The following per share data and ratios have been derived Oct. 31,
from information provided in the financial statements. For the Year 1997++ to
Ended August 31, Aug. 31,
Increase (Decrease) in Net Asset Value: 2000++++ 1999++++ 1998
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.39 $ 10.68 $ 10.00
Operating ---------- ---------- ----------
Performance: Investment income (loss)--net (.18) (.03) --++++++
Realized and unrealized gain on investments
and foreign currency transactions--net 5.44 2.92 .68
---------- ---------- ----------
Total from investment operations 5.26 2.89 .68
---------- ---------- ----------
Less dividends and distributions:
In excess of investment income--net -- --++++++ --
Realized gain on investments--net (.90) (.18) --
---------- ---------- ----------
Total dividends and distributions (.90) (.18) --
---------- ---------- ----------
Net asset value, end of period $ 17.75 $ 13.39 $ 10.68
========== ========== ==========
Total Investment Based on net asset value per share 40.04% 27.27% 6.80%+++
Return:** ========== ========== ==========
Ratios to Average Expenses 1.88% 1.91% 1.99%*
Net Assets: ========== ========== ==========
Investment income (loss)--net (1.11%) (.27%) .05%*
========== ========== ==========
Supplemental Net assets, end of period (in thousands) $2,293,020 $1,677,022 $1,261,129
Data: ========== ========== ==========
Portfolio turnover 75.48% 46.91% 29.67%
========== ========== ==========
<CAPTION>
Class C
For the
Period
The following per share data and ratios have been derived Oct. 31,
from information provided in the financial statements. For the Year 1997++ to
Ended August 31, Aug. 31,
Increase (Decrease) in Net Asset Value: 2000++++ 1999++++ 1998
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.39 $ 10.68 $ 10.00
Operating ---------- ---------- ----------
Performance: Investment income (loss)--net (.19) (.04) --++++++
Realized and unrealized gain on investments
and foreign currency transactions--net 5.45 2.93 .68
---------- ---------- ----------
Total from investment operations 5.26 2.89 .68
---------- ---------- ----------
Less dividends and distributions:
In excess of investment income--net -- -- --
Realized gain on investments--net (.89) (.18) --
---------- ---------- ----------
Total dividends and distributions (.89) (.18) --
---------- ---------- ----------
Net asset value, end of period $ 17.76 $ 13.39 $ 10.68
========== ========== ==========
Total Investment Based on net asset value per share 40.05% 27.23% 6.80%+++
Return:** ========== ========== ==========
Ratios to Average Expenses 1.89% 1.92% 1.99%*
Net Assets: ========== ========== ==========
Investment income (loss)--net (1.12%) (.30%) .04%*
========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 423,800 $ 302,247 $ 249,208
Data: ========== ========== ==========
Portfolio turnover 75.48% 46.91% 29.67%
========== ========== ==========
*Annualized.
**Total investment return excludes the effects of sales charges.
++Commencement of operations.
++++Based on average shares outstanding.
++++++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
Class D
For the
Period
The following per share data and ratios have been derived Oct. 31,
from information provided in the financial statements. For the Year 1997++ to
Ended August 31, Aug. 31,
Increase (Decrease) in Net Asset Value: 2000++++ 1999++++ 1998
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.51 $ 10.75 $ 10.00
Operating ---------- ---------- ----------
Performance: Investment income (loss)--net (.06) .07 .07
Realized and unrealized gain on investments
and foreign currency transactions--net 5.50 2.94 .68
---------- ---------- ----------
Total from investment operations 5.44 3.01 .75
---------- ---------- ----------
Less dividends and distributions:
In excess of investment income--net -- (.07) --
Realized gain on investments--net (1.00) (.18) --
---------- ---------- ----------
Total dividends and distributions (1.00) (.25) --
---------- ---------- ----------
Net asset value, end of period $ 17.95 $ 13.51 $ 10.75
========== ========== ==========
Total Investment Based on net asset value per share 41.18% 28.21% 7.50%+++
Return:** ========== ========== ==========
Ratios to Average Expenses 1.12% 1.14% 1.22%*
Net Assets: ========== ========== ==========
Investment income (loss)--net (.35%) .51% .82%*
========== ========== ==========
Supplemental Net assets, end of period (in thousands) $ 511,367 $ 301,552 $ 212,274
Data: ========== ========== ==========
Portfolio turnover 75.48% 46.91% 29.67%
========== ========== ==========
*Annualized.
**Total investment return excludes the effects of sales charges.
++Commencement of operations.
++++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 Growth Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's financial statements are
prepared in conformity with accounting principles generally accepted
in the United States of America, 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 investments--Portfolio securities that are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of 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 futures contracts and related options, are
stated at market value. Securities and assets for which market
quotations are not available are valued at fair value as determined
in good faith by or under the direction of the Fund's Board of
Directors.
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(c) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies to increase or decrease the level of
risk to which the Fund is exposed more quickly and efficiently than
transactions in other types of instruments. Losses may arise due to
changes in the value of the contract or if the counterparty does not
perform under the contract.
* 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 Growth Fund, Inc., August 31, 2000
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.
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required. Under the applicable foreign tax law, a
withholding tax may be imposed on interest, dividends, and capital
gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Dividend income is recorded on the ex-
dividend dates. Dividends from foreign securities where the ex-
dividend date may have passed are subsequently recorded when the
Fund has determined the ex-dividend date. Interest income (including
amortization of discount) is recognized on the accrual basis.
Realized gains and losses on security transactions are determined on
the identified cost basis.
(f) 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.
(g) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates. Distributions in
excess of investment income are due primarily to differing tax
treatments for foreign currency transactions.
(h) 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
$30,651,192 have been reclassified between undistributed net
realized capital gains and accumulated net investment loss. 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 Investment Managers, L.P. ("MLIM"). The general
partner of MLIM 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 FAM Distributors,
Inc. ("FAMD" or the "Distributor"), which is a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
MLIM 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 based upon the average daily
value of the Fund's net assets at an annual rate of .75% of the
average daily net assets not exceeding $1.5 billion and .725% of the
average daily net assets in excess of $1.5 billion.
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 Distribution
Maintenance 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 August 31, 2000, FAMD 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:
FAMD MLPF&S
Class A $ 1,121 $ 13,750
Class D $36,449 $498,879
For the year ended August 31, 2000, MLPF&S received contingent
deferred sales charges of $3,123,425 and $49,147 relating to
transactions in Class B and Class C Shares, respectively.
Furthermore MLPF&S received contingent deferred sales charges of
$99,013 and $51,755 relating to transactions subject to front-end
sales charge waivers in Class A and Class D Shares, respectively.
In addition, MLPF&S received $655,527 in commissions on the
execution of portfolio security transactions for the Fund for the
year ended August 31, 2000.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by MLIM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLIM, PSI, FDS, FAMD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for year ended August 31, 2000 were $2,283,085,331 and
$2,271,327,249, respectively.
Net realized gains (losses) for the year ended August 31, 2000 and
net unrealized gains as of August 31, 2000 were as follows:
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $338,617,731 $989,088,571
Foreign currency transactions (3,221,420) 193,568
------------ ------------
Total $335,396,311 $989,282,139
============ ============
As of August 31, 2000, net unrealized appreciation for Federal
income tax purposes aggregated $989,088,571, of which $1,097,424,559
related to appreciated securities and $108,335,988 related to
depreciated securities. At August 31, 2000, the aggregate cost of
investments for Federal income tax purposes was $2,553,060,002.
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions
was $275,853,659 and $190,399,619 for the years ended August 31,
2000 and August 31, 1999, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Dollar
Year Ended August 31, 2000 Shares Amount
Shares sold 6,687,519 $ 115,892,549
Shares issued to shareholders in
reinvestment of distributions 415,979 6,655,660
----------- -------------
Total issued 7,103,498 122,548,209
Shares redeemed (3,713,949) (59,832,864)
----------- -------------
Net increase 3,389,549 $ 62,715,345
=========== =============
Class A Shares for the Dollar
Year Ended August 31, 1999 Shares Amount
Shares sold 8,668,706 $ 114,477,964
Shares issued to shareholders in
reinvestment of dividends and
distributions 133,514 1,615,513
----------- -------------
Total issued 8,802,220 116,093,477
Shares redeemed (3,648,167) (46,305,220)
----------- -------------
Net increase 5,154,053 $ 69,788,257
=========== =============
Class B Shares for the Year Dollar
Ended August 31, 2000 Shares Amount
Shares sold 21,942,098 $ 377,511,827
Shares issued to shareholders in
reinvestment of distributions 5,761,166 91,487,315
----------- -------------
Total issued 27,703,264 468,999,142
Automatic conversion of shares (2,166,014) (36,973,591)
Shares redeemed (21,598,145) (351,813,805)
----------- -------------
Net increase 3,939,105 $ 80,211,746
=========== =============
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
Class B Shares for the Year Dollar
Ended August 31, 1999 Shares Amount
Shares sold 32,351,281 $ 414,963,504
Shares issued to shareholders in
reinvestment of dividends and
distributions 1,533,976 18,484,413
----------- -------------
Total issued 33,885,257 433,447,917
Automatic conversion of shares (1,103,665) (14,575,473)
Shares redeemed (25,589,693) (323,658,119)
----------- -------------
Net increase 7,191,899 $ 95,214,325
=========== =============
Class C Shares for the Year Dollar
Ended August 31, 2000 Shares Amount
Shares sold 4,726,273 $ 81,730,041
Shares issued to shareholders in
reinvestment of distributions 1,027,093 16,320,513
----------- -------------
Total issued 5,753,366 98,050,554
Shares redeemed (4,460,422) (72,690,484)
----------- -------------
Net increase 1,292,944 $ 25,360,070
=========== =============
Class C Shares for the Year Dollar
Ended August 31, 1999 Shares Amount
Shares sold 5,729,044 $ 73,383,949
Shares issued to shareholders in
reinvestment of distributions 291,560 3,513,302
----------- -------------
Total issued 6,020,604 76,897,251
Shares redeemed (6,780,971) (86,031,565)
----------- -------------
Net decrease (760,367) $ (9,134,314)
=========== =============
Class D Shares for the Year Dollar
Ended August 31, 2000 Shares Amount
Shares sold 8,301,541 $ 142,663,667
Automatic conversion of shares 2,146,083 36,973,591
Shares issued to shareholders in
reinvestment of distributions 1,229,945 19,642,213
----------- -------------
Total issued 11,677,569 199,279,471
Shares redeemed (5,498,672) (91,712,973)
----------- -------------
Net increase 6,178,897 $ 107,566,498
=========== =============
Class D Shares for the Year Dollar
Ended August 31, 1999 Shares Amount
Shares sold 7,767,865 $ 99,878,109
Automatic conversion of shares 1,096,263 14,575,473
Shares issued to shareholders in
reinvestment of dividends and
distributions 350,785 4,240,989
----------- -------------
Total issued 9,214,913 118,694,571
Shares redeemed (6,641,978) (84,163,220)
----------- -------------
Net increase 2,572,935 $ 34,531,351
=========== =============
5. Short-Term Borrowings:
On December 3, 1999, the Fund, along with certain other funds
managed by MLIM and its affiliates, entered into a one-year,
unsecured $1,000,000,000 credit agreement with Bank of America and
other lenders. The funds may borrow money for temporary or emergency
purposes to meet shareholder redemptions. Each fund may borrow up to
the maximum amount allowable under the fund's current prospectus and
statement of additional information, subject to various other legal,
regulatory or contractual limits. The funds collectively pay a
commitment fee of .09% per annum on the available portion of the
facility. Amounts borrowed under the facility bear interest at the
Federal Funds rate plus .50%. The Fund did not borrow from the
facility during the year ended August 31, 2000.
6. Commitments:
At August 31, 2000, the Fund had entered into foreign exchange
contracts under which it had agreed to purchase and sell foreign
currencies with approximate values of $95,857,000 and $16,049,000,
respectively.
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors,
Merrill Lynch Global Growth Fund, Inc.
We have audited the accompanying statement of assets and liabilities
of Merrill Lynch Global Growth Fund, Inc., including the schedule of
investments, as of August 31, 2000, and the related statement of
operations for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended and
financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and 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 and financial highlights. Our procedures
included confirmation of securities owned as of August 31, 2000 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, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Merrill Lynch Global Growth Fund, Inc. at
August 31, 2000, and the results of its operations for the year then
ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for the
indicated periods in conformity with accounting principles generally
accepted in the United States.
(Ernst & Young)
MetroPark, New Jersey
October 3, 2000
Merrill Lynch Global Growth Fund, Inc., August 31, 2000
IMPORTANT TAX INFORMATION
<TABLE>
The following information summarizes all per share distributions
paid by Merrill Lynch Global Growth Fund, Inc. during its taxable
year ended August 31, 2000:
<CAPTION>
Qualifying
Domestic Non-Qualifying Foreign Taxes
Ordinary Foreign Ordinary Total Paid or Long-Term
Record Date Payable Date Income Source Income Income Ordinary Income Withheld Capital Gains*
<S> <C> <C> <C> <C> <C> <C> <C>
Class A Shares:
12/13/99 12/17/99 $.094048 $.063423 $.114412 $.271883 $.018327 $.758391
Class B Shares:
12/13/99 12/17/99 $.047593 $.032096 $.057898 $.137587 $.018327 $.758391
Class C Shares:
12/13/99 12/17/99 $.044969 $.030326 $.054705 $.130000 $.018327 $.758391
Class D Shares:
12/13/99 12/17/99 $.083467 $.056288 $.101540 $.241295 $.018327 $.758391
*All of the long-term capital gains distributions are subject to a
maximum 20% tax rate.
The domestic qualifying ordinary income qualifies for the dividends
received deduction for corporations. Additionally, there were no
long-term capital gains distributions paid by the Fund during the
fiscal year.
Please retain this information for your records.
</TABLE>
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
M. Colyer Crum, Director
Laurie Simon Hodrick, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Fred G. Weiss, Director
Arthur Zeikel, Director
Robert C. Doll Jr., Senior Vice President
Lawrence R. Fuller, Senior Vice President and
Portfolio Manager
Donald C. Burke, Vice President and Treasurer
Thomas D. Jones, III, 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
