MERRILL LYNCH
GLOBAL GROWTH
FUND, INC.
FUND LOGO
Semi-Annual Report
February 29, 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
February 29, 2000
Percent of
Ten Largest Industries Net Assets
Wireline Communication 15.9%
Communications Equipment 15.3
Electronics 11.0
Wireless Communication 11.0
Computers 7.4
Information Processing 6.0
Energy 4.6
Semiconductors 3.6
Leisure 2.4
Pharmaceuticals 2.2
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Vodafone AirTouch PLC United Kingdom 5.0%
Cisco Systems, Inc. United States 4.9
COLT Telecom Group PLC United Kingdom 4.7
NTT Mobile Communications
Network, Inc. Japan 4.3
Nokia Oyj Finland 3.5
Sun Microsystems, Inc. United States 3.5
Siemens AG Germany 3.1
Texas Instruments Incorporated United States 3.0
STMicroelectronics France 3.0
Applied Materials, Inc. United States 2.7
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
DEAR SHAREHOLDER
Portfolio Matters
For the six months ended February 29, 2000, Merrill Lynch Global
Growth Fund, Inc.'s Class A, Class B, Class C and Class D Shares had
total returns of +50.11%, +49.35%, +49.36% and +49.91%, 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 3 and 4 of this report to shareholders.)
The total returns for the Fund were well ahead of the unmanaged
Morgan Stanley Capital International World Stock Index (in US dollars)
as well as the actively managed investment return of the Lipper
Analytical Services, Inc.'s Global Funds Average, which had returns
of +9.36% and +25.09%, respectively, for the same period.
The positive absolute and relative investment performance is the
result of the change in the industry focus of the Fund in July 1999.
We reduced substantially our investment weightings in banks and
financial service companies, insurance companies, financial service
organizations and consumer non-durable goods companies, while
increasing our investment positions of companies in the
communications equipment, electronics and wireless communications
industries. The top five industries as a percentage of net assets at
February 29, 2000 were wireline communication, 15.9%; communications
equipment, 15.3%; electronics, 11.0%; wireless communication, 11.0%;
and computers, 7.4%. The majority of the investments in the
companies in these industries accounted for the absolute and
relative positive investment performance during the six-month period
ended February 29, 2000. All of the top ten equity investments at
February 29, 2000 were meaningful contributors to the positive
investment returns. At February 29, 2000, our largest equity
holding, Vodafone AirTouch PLC, was 5% of the Fund's net assets.
(For complete listings of the Fund's ten largest industries and
holdings, see page 1 of this report to shareholders.)
Market Outlook
We believe the outlook for equity markets around the world will
continue to be influenced by the importance of major technology and
telecommunication service companies in each market. In general, it
appears to us that the rate of real economic growth is likely to be
in a rising trend in most European countries as well as in Japan and
most of the Pacific Basin countries. There seems to be a continued
move toward mergers of major corporations in the telecommunication
services, banking and financial services, pharmaceuticals,
transportation equipment and energy businesses. We also believe that
the recent upturn in capital spending for Internet-based
communication infrastructure by regulated as well as non-regulated
telecommunication service providers should continue as a result of
both the improvement in functionality as well as the lower cost of
service for commercial and household customers. Corporate
restructurings from our viewpoint are likely to continue to provide
a meaningful source of improved rates of return on equity for major
organizations across industries and around the globe in 2000.
Consequently, we have a positive outlook for the major equity
markets from Europe to Japan to the United States for the remainder
of the year.
In Conclusion
We will continue to focus our investments on the larger, higher-
quality companies in developed economies where we believe the
valuations appear reasonable relative to the corporate rates of
return and prospective growth in earnings.
We thank you for your investment in Merrill Lynch Global Growth
Fund, Inc., and we look forward to discussing our investment results
and strategy in our next 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
March 24, 2000
To reduce shareholders' expenses, Merrill Lynch Global Growth Fund,
Inc. will no longer be printing and mailing quarterly reports to
shareholders. We will continue to provide you with reports on a semi-
annual and annual basis.
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>
6 Month 12 Month Since Inception
As of February 29, 2000 Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Growth Fund, Inc. Class A Shares +50.11% +55.63% +107.87%
ML Global Growth Fund, Inc. Class B Shares +49.35 +54.07 +103.00
ML Global Growth Fund, Inc. Class C Shares +49.36 +54.07 +102.95
ML Global Growth Fund, Inc. Class D Shares +49.91 +55.20 +106.62
*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>
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
PERFORMANCE DATA (concluded)
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 12/31/99 +42.25% +34.78%
Inception (10/31/97) through 12/31/99 +33.95 +30.66
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 12/31/99 +40.69% +36.69%
Inception (10/31/97) through 12/31/99 +32.57 +31.91
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 12/31/99 +40.71% +39.71%
Inception (10/31/97) through 12/31/99 +32.56 +32.56
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 12/31/99 +41.79% +34.35%
Inception (10/31/97) through 12/31/99 +33.59 +30.31
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
NORTH Shares Percent of
AMERICA Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
Canada Communications 230,000 Nortel Networks Corporation $ 25,441,075 0.7%
Equipment
Wireline 700,000 ++AT&T Canada Inc. 40,512,500 1.1
Communication 1,500,000 ++Rogers Communications, Inc. 'B' 50,964,852 1.4
-------------- ------
91,477,352 2.5
Total Investments in Canada 116,918,427 3.2
United Advertising 270,000 The Interpublic Group of Companies, Inc. 10,850,625 0.3
States
Biotechnology 280,000 ++Amgen Inc. 19,075,000 0.6
75,000 ++Biogen, Inc. 8,095,312 0.2
-------------- ------
27,170,312 0.8
Broadcasting 300,000 ++Infinity Broadcasting Corporation (Class A) 9,581,250 0.3
--Media
Broadcasting-- 230,000 ++AMFM Inc. 14,116,250 0.4
Radio & Television 200,000 ++CBS Corporation 11,912,500 0.3
-------------- ------
26,028,750 0.7
Communications 650,000 ++3Com Corporation 63,821,875 1.8
Equipment 1,340,000 ++Cisco Systems, Inc. 177,047,500 4.9
310,000 ++JDS Uniphase Corporation 81,704,375 2.2
410,000 Lucent Technologies Inc. 24,395,000 0.7
112,000 Motorola, Inc. 19,096,000 0.5
-------------- ------
366,064,750 10.1
Computer Software 60,000 ++Commerce One, Inc. 12,510,000 0.3
Computers 775,000 ++EMC Corporation 92,225,000 2.5
1,320,000 ++Sun Microsystems, Inc. 125,730,000 3.5
-------------- ------
217,955,000 6.0
Electrical 35,000 Emerson Electric Co. 1,594,687 0.0
Equipment 400,000 General Electric Company 52,875,000 1.5
-------------- ------
54,469,687 1.5
Electronics 130,000 ++Broadcom Corporation (Class A) 25,650,625 0.7
450,000 ++LSI Logic Corporation 28,828,125 0.8
658,000 Texas Instruments Incorporated 109,557,000 3.0
174,000 ++Xilinx, Inc. 13,876,500 0.4
-------------- ------
177,912,250 4.9
Energy 80,000 Duke Energy Corporation 3,880,000 0.1
500,000 El Paso Energy Corporation 18,531,250 0.5
1,274,000 Enron Corp. 87,906,000 2.4
80,000 UtiliCorp United Inc. 1,310,000 0.1
-------------- ------
111,627,250 3.1
Entertainment 350,000 The Walt Disney Company 11,725,000 0.3
Financial 160,000 T. Rowe Price Associates, Inc. 5,270,000 0.1
Services
Information 820,000 ++America Online, Inc. 48,380,000 1.3
Processing 145,000 ++At Home Corporation (Class A) 4,966,250 0.2
-------------- ------
53,346,250 1.5
Oil Services 375,000 Baker Hughes Incorporated 9,703,125 0.3
62,000 Diamond Offshore Drilling, Inc. 1,968,500 0.0
193,000 Schlumberger Limited 14,257,875 0.4
-------------- ------
25,929,500 0.7
Pharmaceuticals 285,000 Merck & Co., Inc. 17,545,312 0.5
545,000 Pfizer Inc. 17,508,125 0.5
-------------- ------
35,053,437 1.0
Photography 13,000 Eastman Kodak Company 745,062 0.0
Restaurants 270,000 McDonald's Corporation 8,521,875 0.2
Retail 257,000 ++Amazon.com, Inc. 17,668,750 0.5
58,000 ++eBay Inc. 8,312,125 0.2
-------------- ------
25,980,875 0.7
Semiconductors 545,000 ++Applied Materials, Inc. 99,666,875 2.7
Travel & Lodging 170,000 Carnival Corporation 4,898,125 0.1
</TABLE>
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Shares Percent of
(concluded) Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
United Wireless 50,000 ++Sprint Corp. (PCS Group) $ 2,587,500 0.1%
States Communication
(concluded)
Wireline 510,000 AT&T Corp. 25,213,125 0.7
Communication 347,000 ++Covad Communications Group, Inc. 31,099,875 0.9
59,600 ++Infonet Services Corporation (Class B) 1,646,450 0.0
307,500 ++MCI WorldCom Inc. 13,722,187 0.4
1,000,000 ++NorthPoint Communications Group, Inc. 22,687,500 0.6
180,000 ++Qwest Communications International Inc. 8,347,500 0.2
-------------- ------
102,716,637 2.8
Total Investments in the United States 1,390,611,010 38.2
Total Investments in North America
(Cost--$824,639,620) 1,507,529,437 41.4
PACIFIC
BASIN
Australia Wireless 4,000,000 ++Cable & Wireless Optus Limited 15,870,928 0.5
Communication
Total Investments in Australia 15,870,928 0.5
China Information Processing 100,000 ++China.Com Corporation 'A' 12,243,750 0.3
Total Investments in China 12,243,750 0.3
Japan Automobiles 100,000 Honda Motor Co., Ltd. 3,277,047 0.1
750,000 Toyota Motor Corporation 29,971,326 0.8
-------------- ------
33,248,373 0.9
Computers 1,500,000 Fujitsu Limited 49,838,423 1.4
Leisure 220,000 Sony Corporation 65,085,795 1.8
Office Equipment 25,000 Canon, Inc. 1,040,007 0.0
Photography 50,000 Fuji Photo Film 2,198,352 0.1
Retail 700,000 Ito-Yokado Co., Ltd. 40,781,030 1.1
Semiconductors 60,000 Tokyo Electron Limited 9,148,423 0.3
Transportation 10,000 East Japan Railway Company 45,150,426 1.2
Wireless 3,900 NTT Mobile Communications Network, Inc. 157,270,948 4.3
Communication
Wireline 5,085 Nippon Telegraph & Telephone Corporation (NTT) 70,358,199 1.9
Communication
Total Investments in Japan 474,119,976 13.0
Total Investments in the Pacific Basin
(Cost--$381,793,350) 502,234,654 13.8
WESTERN
EUROPE
Denmark Wireline 300,000 Tele Danmark A/S 24,658,067 0.7
Communication
Total Investments in Denmark 24,658,067 0.7
Finland Communications 640,000 Nokia Oyj 127,551,744 3.5
Equipment
Wireless 230,000 Sonera Oyj 17,737,664 0.5
Communication
Total Investments in Finland 145,289,408 4.0
France Banking & Financial 164,300 ++Credit Lyonnais 5,568,219 0.2
Broadcasting & 45,000 Societe Television Francaise 1 29,245,050 0.8
Publishing
Chemicals 375,093 ++Aventis SA 19,393,193 0.5
Cosmetics 5,000 L'Oreal SA 3,321,660 0.1
Electrical 350,000 Alstom 8,084,150 0.2
Equipment
Electronics 550,000 STMicroelectronics 109,085,240 3.0
Foods 20,000 Groupe Danone 4,020,653 0.1
Information 15,000 Cap Gemini SA 4,130,412 0.1
Processing
Insurance 52,000 Axa 6,533,561 0.2
Pharmaceuticals 50,000 Aventis SA 2,551,420 0.1
Retail Stores 60,000 Carrefour SA 9,098,460 0.2
Total Investments in France 201,032,018 5.5
Germany Apparel 50,000 Adidas-Salomon AG 2,657,328 0.1
Automobiles 300,000 DaimlerChrysler AG (Registered Shares) 20,334,336 0.6
Banking & 65,000 Commerzbank AG 2,315,534 0.1
Financial 70,000 Dresdner Bank AG 3,356,321 0.1
-------------- ------
5,671,855 0.2
Chemicals 125,000 BASF AG 5,698,573 0.1
145,000 Bayer AG 6,037,960 0.2
27,450 Celanese AG 544,435 0.0
-------------- ------
12,280,968 0.3
Electronics 640,000 Siemens AG 114,303,616 3.1
Information 500,500 ++Freenet.de AG 97,243,667 2.7
Processing
Insurance 30,000 Allianz AG (Registered Shares) 10,461,785 0.3
Multi-Industry 175,000 Veba AG 7,817,936 0.2
Retail Stores 1,000,000 Metro AG 37,934,320 1.0
Wireless 170,000 MobilCom AG 22,873,721 0.6
Communication
Total Investments in Germany 331,579,532 9.1
</TABLE>
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN EUROPE Shares Percent of
(concluded) Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
Ireland Banking & Financial 200,000 Allied Irish Banks PLC $ 1,640,611 0.0%
Wireline 100,000 ++Esat Telecom Group PLC (ADR)* 9,925,000 0.3
Communication
Total Investments in Ireland 11,565,611 0.3
Italy Banking & 2,000,000 Banca di Roma SpA 2,274,134 0.1
Financial 1,000,000 Unicredito Italiano SpA 3,687,524 0.1
5,961,658 0.2
Insurance 145,000 Assicurazioni Generali 3,943,870 0.1
4,000,000 Istituto Nazionale delle Assicurazioni SpA (INA) 8,299,336 0.2
-------------- ------
12,243,206 0.3
Real Estate 3,750,000 Unione Immobiliare SpA 1,714,988 0.1
Investment Trust
Total Investments in Italy 19,919,852 0.6
Netherlands Chemicals 285,000 Akzo Nobel NV 10,978,664 0.3
135,000 DSM NV 4,428,350 0.1
-------------- ------
15,407,014 0.4
Energy 470,000 Royal Dutch Petroleum Company 24,567,094 0.7
Insurance 95,000 Aegon NV 6,548,966 0.2
300,000 ING Groep NV 15,169,877 0.4
-------------- ------
21,718,843 0.6
Leisure 127,600 Koninklijke (Royal) Philips Electronics NV 23,618,543 0.6
Semiconductors 174,950 ++ASM Lithography Holding NV 22,276,436 0.6
Wireline 212,500 ++Equant 24,019,453 0.7
Communication
Total Investments in the Netherlands 131,607,383 3.6
Portugal Wireline 1,615,000 Portugal Telecom SA (Registered Shares) 22,966,198 0.6
Communication
Total Investments in Portugal 22,966,198 0.6
Spain Banking & Financial 600,000 ++Banco Bilbao Vizcaya, SA 8,722,968 0.3
1,100,000 Banco Santander Central Hispano, SA 11,543,972 0.3
-------------- ------
20,266,940 0.6
Information 750,000 ++Telefonica Publicidad e Informacion, SA 51,269,100 1.4
Processing
Total Investments in Spain 71,536,040 2.0
Sweden Communications 375,000 Telefonaktiebolaget LM Ericsson `B' 35,887,419 1.0
Equipment
Total Investments in Sweden 35,887,419 1.0
Switzerland Foods 5,000 Nestle SA (Registered Shares) 8,430,233 0.2
Pharmaceuticals 10,000 Novartis AG (Registered Shares) 12,730,760 0.4
Total Investments in Switzerland 21,160,993 0.6
United Banking & Financial 235,000 Barclays PLC 5,661,376 0.2
Kingdom 750,000 HSBC Holdings PLC 8,732,184 0.2
850,000 Lloyds TSB Group PLC 7,823,248 0.2
-------------- ------
22,216,808 0.6
Chemicals 50,000 Imperial Chemical Industries PLC 384,019 0.0
Energy 4,000,000 BP Amoco PLC 30,784,650 0.8
Household Products 669,642 Unilever PLC 4,078,009 0.1
Insurance 190,700 CGU PLC 2,274,494 0.1
Pharmaceuticals 150,000 AstraZeneca Group PLC 4,875,815 0.1
400,000 Glaxo Wellcome PLC 9,585,866 0.3
835,000 SmithKline Beecham PLC 9,352,732 0.3
-------------- ------
23,814,413 0.7
Publishing 380,000 EMAP PLC 8,038,740 0.2
250,000 Pearson PLC 8,296,068 0.2
-------------- ------
16,334,808 0.4
Wireless 32,323,849 Vodafone AirTouch PLC 181,282,869 5.0
Communication
Wireline 3,000,000 ++COLT Telecom Group PLC 171,967,791 4.7
Communication 1,200,000 ++Energis PLC 60,716,802 1.7
-------------- ------
232,684,593 6.4
Total Investments in the United Kingdom 513,854,663 14.1
Total Investments in Western Europe
(Cost--$845,709,704) 1,531,057,184 42.1
SHORT-TERM Face
SECURITIES Amount Issue
Commercial $71,046,000 Associates First Capital Corp., 5.87% due
Paper** 3/01/2000 71,046,000 2.0
Total Investments in Short-Term Securities
(Cost--$71,046,000) 71,046,000 2.0
Total Investments (Cost--$2,123,188,674) 3,611,867,275 99.3
Other Assets Less Liabilities 26,861,419 0.7
-------------- ------
Net Assets $3,638,728,694 100.0%
============== ======
*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.
++Non-income producing security.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of February 29, 2000
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$2,123,188,674) $3,611,867,275
Foreign cash 9,673,488
Cash 2,408
Receivables:
Securities sold $ 26,964,809
Capital shares sold 8,107,524
Dividends 2,130,903 37,203,236
--------------
Deferred organization expenses 70,549
Prepaid registration fees and other assets 190,864
--------------
Total assets 3,659,007,820
--------------
Liabilities: Payables:
Securities purchased 8,317,768
Capital shares redeemed 6,880,173
Distributor 2,286,509
Investment adviser 1,768,489 19,252,939
--------------
Accrued expenses and other liabilities 1,026,187
--------------
Total liabilities 20,279,126
--------------
Net Assets: Net assets $3,638,728,694
==============
Net Assets Class A Shares of Common Stock, $.10 par value, 100,000,000
Consist of: shares authorized $ 1,421,832
Class B Shares of Common Stock, $.10 par value, 300,000,000
shares authorized 12,931,425
Class C Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 2,307,942
Class D Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 2,532,277
Paid-in capital in excess of par 2,101,009,010
Accumulated investment loss--net (15,802,923)
Undistributed realized capital gains on investments and foreign
currency transactions--net 45,770,026
Unrealized appreciation on investments and foreign currency
transactions--net 1,488,559,105
--------------
Net assets $3,638,728,694
==============
Net Asset Class A--Based on net assets of $271,667,858 and 14,218,322
Value: shares outstanding $ 19.11
==============
Class B--Based on net assets of $2,447,331,833 and 129,314,250
shares outstanding $ 18.93
==============
Class C--Based on net assets of $437,073,933 and 23,079,425
shares outstanding $ 18.94
==============
Class D--Based on net assets of $482,655,070 and 25,322,767
shares outstanding $ 19.06
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended February 29, 2000
<S> <S> <C> <C>
Investment Dividends (net of $671,942 foreign withholding tax) $ 7,904,156
Income: Interest and discount earned 2,005,011
--------------
Total income 9,909,167
--------------
Expenses: Investment advisory fees $ 10,539,386
Account maintenance and distribution fees--Class B 9,715,823
Account maintenance and distribution fees--Class C 1,738,792
Transfer agent fees--Class B 925,583
Account maintenance fees--Class D 457,941
Custodian fees 282,083
Transfer agent fees--Class C 177,015
Transfer agent fees--Class D 144,158
Registration fees 129,346
Transfer agent fees--Class A 78,143
Printing and shareholder reports 75,493
Professional fees 75,407
Accounting services 59,189
Amortization of organization expenses 34,636
Directors' fees and expenses 26,277
Pricing fees 10,705
Other 25,728
--------------
Total expenses 24,495,705
--------------
Investment loss--net (14,586,538)
--------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 47,486,728
(Loss) on Foreign currency transactions--net (1,716,541) 45,770,187
Investments & --------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net 1,143,730,009
Foreign currency transactions--net (80,618) 1,143,649,391
-------------- --------------
Net Increase in Net Assets Resulting from Operations $1,174,833,040
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Growth Fund, Inc. February 29, 2000
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
February 29, August 31,
Increase (Decrease) in Net Assets: 2000 1999
<S> <S> <C> <C>
Operations: Investment loss--net $ ( 14,586,538) $ (2,685,412)
Realized gain on investments and foreign currency
transactions--net 45,770,187 164,997,268
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 1,143,649,391 328,299,323
-------------- --------------
Net increase in net assets resulting from operations 1,174,833,040 490,611,179
-------------- --------------
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 (22,402,562) (3,512,417)
-------------- --------------
Net decrease in net assets resulting from dividends
and distributions to shareholders (161,444,847) (32,185,461)
-------------- --------------
Capital Share Net increase in net assets derived from capital share
Transactions: transactions 173,379,452 190,399,619
Net Assets: -------------- --------------
Total increase in net assets 1,186,767,645 648,825,337
Beginning of period 2,451,961,049 1,803,135,712
-------------- --------------
End of period* $3,638,728,694 $2,451,961,049
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
The following per share data and ratios have been derived from For the Six For the For the Period
information provided in the financial statements. Months Ended Year Ended Oct. 31, 1997++
February 29, August 31, to August 31,
Increase (Decrease) in Net Assets: 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 (.01) .11 .06
----------- ----------- -----------
Realized and unrealized gain on investments and
foreign currency transactions--net 6.60 2.93 .72
----------- ----------- -----------
Total from investment operations 6.59 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 $ 19.11 $ 13.55 $ 10.78
=========== =========== ===========
Total Investment Based on net asset value per share 50.11%+++ 28.46% 7.80%+++
Return:** =========== =========== ===========
Ratios to Average Expenses .86%* .90% .98%*
Net Assets: =========== =========== ===========
Investment income (loss)--net (.17%)* .88% 1.00%*
=========== =========== ===========
Supplemental Net assets, end of period (in thousands) $ 271,668 $ 171,140 $ 80,525
Data: =========== =========== ===========
Portfolio turnover 42.61% 46.91% 29.67%
=========== =========== ===========
<CAPTION>
Class B
The following per share data and ratios have been derived from For the Six For the For the Period
information provided in the financial statements. Months Ended Year Ended Oct. 31, 1997++
February 29, August 31, to August 31,
Increase (Decrease) in Net Assets: 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 (.09) (.03) --++++
Realized and unrealized gain on investments and
foreign currency transactions--net 6.53 2.92 .68
----------- ----------- -----------
Total from investment operations 6.44 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 $ 18.93 $ 13.39 $ 10.68
=========== =========== ===========
Total Investment Based on net asset value per share 49.35%+++ 27.27% 6.80%+++
Return:** =========== =========== ===========
Ratios to Average Expenses 1.88%* 1.91% 1.99%*
Net Assets: =========== =========== ===========
Investment income (loss)--net (1.19%)* (.27%) .05%*
=========== =========== ===========
Supplemental Net assets, end of period (in thousands) $ 2,447,332 $ 1,677,022 $ 1,261,129
Data: =========== =========== ===========
Portfolio turnover 42.61% 46.91% 29.67%
=========== =========== ===========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Commencement of operations.
++++Amount is less than $.01 per share.
++++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class C
The following per share data and ratios have been derived from For the Six For the For the Period
information provided in the financial statements. Months Ended Year Ended Oct. 31, 1997++
February 29, August 31, to August 31,
Increase (Decrease) in Net Assets: 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 (.09) (.04) --++++
Realized and unrealized gain on investments and
foreign currency transactions--net 6.53 2.93 .68
----------- ----------- -----------
Total from investment operations 6.44 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 $ 18.94 $ 13.39 $ 10.68
=========== =========== ===========
Total Investment Based on net asset value per share 49.36%+++ 27.23% 6.80%+++
Return:** =========== =========== ===========
Ratios to Average Expenses 1.89%* 1.92% 1.99%*
Net Assets: =========== =========== ===========
Investment income (loss)--net (1.19%)* (.30%) .04%*
=========== =========== ===========
Supplemental Net assets, end of period (in thousands) $ 437,074 $ 302,247 $ 249,208
Data: =========== =========== ===========
Portfolio turnover 42.61% 46.91% 29.67%
=========== =========== ===========
<CAPTION>
Class D
The following per share data and ratios have been derived from For the Six For the For the Period
information provided in the financial statements. Months Ended Year Ended Oct. 31, 1997++
February 29, August 31, to August 31,
Increase (Decrease) in Net Assets: 2000++++++ 1999++++++ 1998
<S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.51 $ 10.75 $ 10.00
Operating ----------- ----------- -----------
Performance: Investment income (loss)--net (.03) .07 .07
Realized and unrealized gain on investments and
foreign currency transactions--net 6.58 2.94 .68
----------- ----------- -----------
Total from investment operations 6.55 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 $ 19.06 $ 13.51 $ 10.75
=========== =========== ===========
Total Investment Based on net asset value per share 49.91%+++ 28.21% 7.50%+++
Return:** =========== =========== ===========
Ratios to Average Expenses 1.11%* 1.14% 1.22%*
Net Assets: =========== =========== ===========
Investment income (loss)--net (.43%)* .51% .82%*
=========== =========== ===========
Supplemental Net assets, end of period (in thousands) $ 482,655 $ 301,552 $ 212,274
Data: =========== =========== ===========
Portfolio turnover 42.61% 46.91% 29.67%
=========== =========== ===========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Commencement of operations.
++++Amount is less than $.01 per share.
++++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
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 accordance with generally accepted accounting
principles, which may require the use of management accruals and
estimates. These unaudited financial statements reflect all
adjustments, which are, in the opinion of management, necessary to a
fair statement of the results for the interim period presented. All
such adjustments are of a normal recurring nature. The Fund offers
four classes of shares under the Merrill Lynch Select Pricingsm
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 strategies to seek to increase its return by hedging its
portfolio against adverse movements in the equity and currency
markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Options--The Fund is authorized to write and purchase call and put
options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on
operations is recorded from the date the Fund enters into such
contracts.
* Foreign currency options and futures--The Fund may also purchase
or sell listed or over-the-counter foreign currency options, foreign
currency futures and related options on foreign currency futures as
a short or long hedge against possible variations in foreign
exchange rates. Such transactions may be effected with respect to
hedges on non-US dollar denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated
to be purchased by the Fund.
* Financial futures contracts--The Fund may purchase or sell
financial futures contacts 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.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P. ("MLAM"). The general partner
of MLAM is Princeton Services, Inc. ("PSI"), an indirect wholly-
owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is
the limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or the "Distributor"), a division of Princeton
Funds Distributor, Inc. ("PFD"), which is a wholly-owned subsidiary
of Merrill Lynch Group, Inc.
MLAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee 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
Maintenance Distribution
Fee Fee
Class B .25% .75%
Class C .25% .75%
Class D .25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML &
Co., also provides account maintenance and distribution services to
the Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the six months ended February 29, 2000, MLFD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Fund's Class A and Class D Shares as
follows:
MLFD MLPF&S
Class A $ 455 $ 5,711
Class D $14,760 $201,821
For the six months ended February 29, 2000, MLPF&S received
contingent deferred sales charges of $1,805,279 and $29,375 relating
to transactions in Class B and Class C Shares, respectively.
Merrill Lynch Global Growth Fund, Inc., February 29, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
Furthermore, MLPF&S received contingent deferred sales charges of
$255 relating to transactions subject to front-end sales charge
waivers in Class D Shares.
In addition, MLPF&S received $171,421 in commissions on the
execution of portfolio security transactions for the Fund for the
six months ended February 29, 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 MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLAM, PSI, FDS, PFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended February 29, 2000 were $1,211,062,916 and
$1,186,648,722, respectively.
Net realized gains (losses) for the six months ended February 29,
2000 and net unrealized gains (losses) as of February 29, 2000 were
as follows:
Realized Unrealized
Gains Gains
(Losses) (Losses)
Long-term investments $47,486,728 $1,488,678,601
Foreign currency transactions (1,716,541) (119,496)
----------- --------------
Total $45,770,187 $1,488,559,105
=========== ==============
As of February 29, 2000, net unrealized appreciation for Federal
income tax purposes aggregated $1,488,678,601, of which
$1,611,098,004 related to appreciated securities and $122,419,403
related to depreciated securities. At February 29, 2000, the
aggregate cost of investments for Federal income tax purposes was
$2,123,188,674.
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions
was $173,379,452 and $190,399,619 for the six months ended February
29, 2000 and for the year ended August 31, 1999, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Six Months Dollar
Ended February 29, 2000 Shares Amount
Shares sold 3,153,281 $ 53,269,516
Shares issued to shareholders in
reinvestment of distributions 415,979 6,655,661
----------- -------------
Total issued 3,569,260 59,925,177
Shares redeemed (1,977,180) (29,589,525)
----------- -------------
Net increase 1,592,080 $ 30,335,652
=========== =============
Class A Shares for the Year Dollar
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 Six Months Dollar
Ended February 29, 2000 Shares Amount
Shares sold 11,094,345 $ 185,116,590
Shares issued to shareholders in
reinvestment of distributions 5,761,166 91,487,315
----------- -------------
Total issued 16,855,511 276,603,905
Automatic conversion of shares (649,377) (10,324,356)
Shares redeemed (12,116,009) (185,943,241)
----------- -------------
Net increase 4,090,125 $ 80,336,308
=========== =============
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 Six Months Dollar
Ended February 29, 2000 Shares Amount
Shares sold 2,125,610 $ 35,695,538
Shares issued to shareholders in
reinvestment of distributions 1,027,093 16,320,513
----------- -------------
Total issued 3,152,703 52,016,051
Shares redeemed (2,637,711) (40,698,732)
----------- -------------
Net increase 514,992 $ 11,317,319
=========== =============
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 Six Months Dollar
Ended February 29, 2000 Shares Amount
Shares sold 3,823,343 $ 63,584,344
Automatic conversion of shares 643,640 10,324,356
Shares issued to shareholders in
reinvestment of distributions 1,229,944 19,642,213
----------- -------------
Total issued 5,696,927 93,550,913
Shares redeemed (2,686,796) (42,160,740)
----------- -------------
Net increase 3,010,131 $ 51,390,173
=========== =============
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
=========== =============
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, 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
Donald Cecil and Edward H. Meyer, Directors of Merrill Lynch Global
Growth Fund, Inc., have recently retired. The Fund's Board of
Directors wishes Mr. Cecil and Mr. Meyer well in their retirements.
