ANNUAL REPORT
NOVEMBER 30, 2000
[GRAPHIC OMITTED]
Mercury
Premier
Growth
Fund, Inc.
<PAGE>
PORTFOLIO INFORMATION
GEOGRAPHIC ALLOCATION
================================================================================
As a Percentage of Net Assets as of November 30, 2000+
A pie chart depicting portfolio composition according to country representation
for year ended November 30, 2000.
United States--76.7%
Canada--2.8%
Singapore--2.1%
+ Total may not equal 100%.
WORLDWIDE INVESTMENTS AS OF NOVEMBER 30, 2000
================================================================================
Percent of
Ten Largest Equity Holdings Net Assets
================================================================================
Comverse Technology, Inc. 4.1%
--------------------------------------------------------------------------------
Brocade Communications
Systems, Inc. 3.3
--------------------------------------------------------------------------------
BEA Systems, Inc. 3.1
--------------------------------------------------------------------------------
Juniper Networks, Inc. 2.9
--------------------------------------------------------------------------------
Extreme Networks, Inc. 2.8
--------------------------------------------------------------------------------
Applera Corporation--
Applied Biosystems Group 2.7
--------------------------------------------------------------------------------
Harley-Davidson, Inc. 2.7
--------------------------------------------------------------------------------
CIENA Corporation 2.7
--------------------------------------------------------------------------------
VERITAS Software Corporation 2.7
--------------------------------------------------------------------------------
Cisco Systems, Inc. 2.5
--------------------------------------------------------------------------------
Percent of
Ten Largest Industries Net Assets
================================================================================
Computer Services/Software 13.5%
--------------------------------------------------------------------------------
Communications Equipment 10.7
--------------------------------------------------------------------------------
Networking Products 8.6
--------------------------------------------------------------------------------
Instruments 7.5
--------------------------------------------------------------------------------
Fiber Optics 6.6
--------------------------------------------------------------------------------
Biotechnology 5.9
--------------------------------------------------------------------------------
Internet Software 4.4
--------------------------------------------------------------------------------
Electronic/Semiconductors 4.0
--------------------------------------------------------------------------------
Retail--Specialty 3.3
--------------------------------------------------------------------------------
Pharmaceuticals 3.1
--------------------------------------------------------------------------------
November 30, 2000 (2) Mercury Premier Growth Fund, Inc.
<PAGE>
DEAR SHAREHOLDER
We are pleased to provide you with our first annual report for Mercury Premier
Growth Fund, Inc. The Fund seeks to provide shareholders with long-term capital
appreciation by investing primarily in a limited number of common stocks of
companies that we believe have strong revenue and earnings growth potential. In
this and future shareholder reports, we will comment on the overall investment
environment, highlight factors that affected Fund performance, and describe
recent investment activities.
Investment Environment
Volatility remained the defining characteristic of the equity investment arena
during the six-month period ended November 30, 2000, with investor attitudes
shifting markedly and with uncommon frequency. Since the launch of the Fund on
March 20, 2000, we have already witnessed one and one-half up/down cycles in the
aggressive growth portion of the market. Unfortunately, two legs of these cycles
have been down and only one has been up. As the Fund's fiscal year came to a
close on November 30, 2000, we were still in the midst of the second down leg.
The driving forces behind the most recent negative swing in investor sentiment
are vastly different from those that contributed to the market downturn in the
spring of this year. Investors are having difficulty coming to terms with a
slowing economy. They worry about the magnitude of the slowdown and about the
eventual impact such a deceleration might have on corporate profit growth.
A couple of unique twists helped to further exacerbate the most recent bout of
negative sentiment. The first was the prolonged presidential election, which
served as a daily drain on investor confidence. The frustration and confusion
caused by the uncertain presidency disrupted the normal buyer/seller balance.
Buyers moved to the sidelines until the dust settled and they could invest with
confidence, leaving only sellers on the playing field. The second contributing
factor was a new Securities and Exchange Commission (SEC) regulation known as
"REG FD," which has had a notable negative impact on the valuations of
aggressive growth stocks since it took effect on October 23, 2000. While
investors knew REG FD was imminent, the immediate repercussions were,
nonetheless, striking. Essentially, the regulation states that company
managements may no longer provide new and meaningful information to any
individual or group without simultaneously making that information available to
any and every other interested party. Company managements faced the difficult
task of complying with REG FD or severely cutting back communications with
analysts and investors. Initially, they have chosen to follow the easier path of
cutting back communications. This has proved particularly detrimental in the
aggressive growth arena since Wall Street analysts who follow high-growth
companies are heavily dependent on management feedback in building their
forward-looking income statement models. Direct and continuous feedback is not
nearly as critical with slow-growth companies because the changes are fewer and
come at a much less rapid pace. Analysts, now feeling abandoned and without
support from company managements, have chosen to become extremely conservative
with their earnings estimates, price targets and ratings. Investors have
perceived this new conservative disposition as a more cautious outlook on the
part of analysts regarding future growth rates. Understandably, this further
fueled the already negative investor sentiment.
November 30, 2000 (3) Mercury Premier Growth Fund, Inc.
<PAGE>
Taken together, all of these factors have served to create an environment of
widespread bearishness that seems to have reached unsustainable levels,
particularly given our analysis of selected companies and their continued strong
growth prospects over the foreseeable future.
Fiscal Year in Review
Since inception (March 20, 2000) through November 30, 2000, the Fund's Class I,
Class A, Class B and Class C Shares had total returns of -38.40%, -38.50%,
-38.90% and -38.90%, respectively. The Fund's results compared favorably
relative to the -43.58% return of the NASDAQ Composite Index for the same
period. (Fund results do not reflect sales charges and would be lower if sales
charges were included. Complete performance information can be found on pages
5-8 of this report to shareholders.)
Mercury Premier Growth Fund, Inc. was launched just after the record peak in the
NASDAQ Composite Index. The downdraft that immediately followed was fast and
furious. Fortunately, the market had bottomed by late May, after investors
concluded that the Federal Reserve Board's effort to raise interest rates to
slow a potentially overheating economy had achieved the desired effect, thereby
eliminating the immediate need for further tightening. The portfolio's stocks
proceeded to rebound dramatically over the five months that followed, as the
fundamental strength of our companies' businesses was demonstrated in their
quarterly financial reports. At that time, in a more favorable market
environment, the share prices were better able to reflect these strengths. By
late October, the Fund's investment returns since inception had crossed into
positive territory.
Unfortunately, this scenario was short-lived. The first trigger for another
downturn in the market was the suggestion that spending on telecommunications
capital equipment by service providers would slow dramatically in 2001. Up to
this point, investors had assumed that a seemingly insatiable demand for
bandwidth, the "highway" traveled by data and voice traffic, would continue to
drive strong sales and profit growth for equipment providers, thereby sustaining
the relatively high share price multiples these companies enjoyed. This new
"speed bump" was confirmed in most investors' minds by a series of disappointing
data points in the financial results of several major companies participating in
the telecommunications equipment market. Issues arose at Lucent Technologies,
Inc., Northern Telecom and even Cisco Systems, Inc. The resulting rush for the
exits left few stocks unscathed.
While we did make some portfolio adjustments in response to a possible spending
slowdown, we also went to substantial lengths to confirm our belief that the
Fund's telecommunications holdings were positioned in high-growth segments that
were unlikely to experience significant reductions in service provider spending.
As a result, we added to many of our positions. Our confidence came from the
fact that the companies we own offer products and/or services that enable
service providers to lower their costs of doing business, provide competitive
services at lower costs and/or offer new services, thereby generating new
sources of revenue. In this very competitive and perhaps more uncertain
environment, we believe it seems unlikely that providers would not continue to
invest in these types of products provided by such companies as CIENA
Corporation, Juniper Networks, Inc., Corning Incorporated and Extreme Networks,
Inc.
November 30, 2000 (4) Mercury Premier Growth Fund, Inc.
<PAGE>
In Conclusion
Entering the new fiscal year, we look for catalysts that might spark a
turnaround in investor sentiment. We are hopeful that the recent resolution of
the presidential election might serve such a purpose. Also constructive would be
some assurance that the Federal Reserve Board stands ready to implement a more
accommodative monetary policy if evidence continues to indicate that the economy
has "hit a wall." A promising sign came when the Federal Reserve Board cut
interest rates recently by 0.50%.
We appreciate your investment in Mercury Premier Growth Fund, Inc., and we are
particularly grateful for your support during a challenging first fiscal year.
Sincerely,
/s/ Terry K. Glenn /s/ James D. McCall
Terry K. Glenn James D. McCall
President and Director/Trustee Senior Vice President and
Portfolio Manager
January 4, 2001
FUND PERFORMANCE DATA
ABOUT FUND PERFORMANCE
The Fund offers four classes of shares, each with its own sales charge and
expense structure, allowing you to invest in the way that best suits your needs.
CLASS I SHARES incur a maximum initial sales charge of 5.25% and bear no ongoing
distribution and account maintenance fees. Class I Shares are available only to
eligible investors.
CLASS A SHARES incur a maximum initial sales charge of 5.25% and an account
maintenance fee of 0.25% (but no distribution fee).
November 30, 2000 (5) Mercury Premier Growth Fund, Inc.
<PAGE>
FUND PERFORMANCE DATA (CONTINUED)
CLASS B SHARES are subject to a maximum contingent deferred sales charge of 4%
if redeemed during the first two years, decreasing to 3% for each of the next
two years and decreasing 1% each year thereafter to 0% after the sixth 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 A
Shares after approximately 8 years.
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 may be subject to a 1%
contingent deferred sales charge if redeemed within one year after purchase.
None of the past results shown should be considered a representation of future
performance. Figures shown in the "Recent Performance Results" and "Aggregate
Total Return" tables assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date. Investment return and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Dividends paid to each class of
shares will vary because of the different levels of account maintenance,
distribution and transfer agency fees applicable to each class, which are
deducted from the income available to be paid to shareholders. The Fund's
Investment Adviser voluntarily waived a portion of its management fee. Without
such waiver, the Fund's performance would have been lower.
AGGREGATE TOTAL RETURN
================================================================================
% Return % Return
Without Sales With Sales
Class I Shares* Charge Charge**
================================================================================
Inception (3/20/00)
through 9/30/00 -3.50% -8.57%
--------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
% Return % Return
Without With
Class B Shares* CDSC CDSC**
================================================================================
Inception (3/20/00)
through 9/30/00 -4.10% -7.94%
--------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 4% and is reduced to 0% after
6 years.
** Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without Sales With Sales
Class A Shares* Charge Charge**
================================================================================
Inception (3/20/00)
through 9/30/00 -3.70% -8.76%
--------------------------------------------------------------------------------
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
% Return % Return
Without With
Class C Shares* CDSC CDSC**
================================================================================
Inception (3/20/00)
through 9/30/00 -4.10% -5.06%
--------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 1% and is reduced to 0% after
1 year.
** Assuming payment of applicable contingent deferred sales charge.
November 30, 2000 (6) Mercury Premier Growth Fund, Inc.
<PAGE>
FUND PERFORMANCE DATA (CONTINUED)
Total Return Based on a $10,000 Investment--Class I Shares and Class A Shares
A line graph depicting the growth of an investment in the Fund's Class I Shares
and Class A Shares compared to growth of an investment in the Standard & Poor's
Barra Growth Index. Beginning and ending values are:
3/20/00** 11/00
Mercury Premier Growth Fund, Inc.+--
Class I Shares* $ 9,475 $5,837
Mercury Premier Growth Fund, Inc.+--
Class A Shares* $ 9,475 $5,827
Standard & Poor's Barra Growth Index ++ $10,000 $7,823
Total Return Based on a $10,000 Investment--Class B Shares and Class C Shares
A line graph depicting the growth of an investment in the Fund's Class B Shares
and Class C Shares compared to growth of an investment in the Standard & Poor's
Barra Growth Index. Beginning and ending values are:
3/20/00** 11/00
Mercury Premier Growth Fund, Inc.+--
Class B Shares* $10,000 $5,866
Mercury Premier Growth Fund, Inc.+--
Class C Shares* $10,000 $6,049
Standard & Poor's Barra Growth Index ++ $10,000 $7,823
* Assuming maximum sales charge, transaction costs and other operating
expenses, including advisory fees.
** Commencement of operations.
+ The Fund invests all of its assets in Master Premier Growth Trust. The
Trust invests primarily in common stocks of the companies that Fund
management believes have strong earnings growth and capital appreciation
potential.
++ This unmanaged Index is a capitalization-weighted index of all the stocks
in the Standard & Poor's 500 Index that have higher book-to-price ratios.
November 30, 2000 (7) Mercury Premier Growth Fund, Inc.
<PAGE>
FUND PERFORMANCE DATA (CONCLUDED)
RECENT PERFORMANCE RESULTS*
================================================================================
6 Month Since Inception
As of November 30, 2000 Total Return Total Return
================================================================================
Class I -22.71% -38.40%
--------------------------------------------------------------------------------
Class A -22.84 -38.50
--------------------------------------------------------------------------------
Class B -23.24 -38.90
--------------------------------------------------------------------------------
Class C -23.24 -38.90
--------------------------------------------------------------------------------
Standard & Poor's Barra Growth Index** -14.19 -21.77
--------------------------------------------------------------------------------
* 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 the Fund's net asset values for the period shown, and
assume reinvestment of all dividends and capital gains at net asset value
on the ex-dividend date. The Fund commenced operations on 3/20/00.
** An unmanaged capitalization-weighted Index comprised of all the stocks in
the Standard & Poor's 500 Index that have higher price-to-book ratios.
Since inception total return is from 3/31/00.
November 30, 2000 (8) Mercury Premier Growth Fund, Inc.
<PAGE>
STATEMENT OF ASSETS
AND LIABILITIES
As of November 30, 2000
--------------------------------------------------------------------------------
MERCURY PREMIER GROWTH FUND, INC.
================================================================================
<TABLE>
<S> <C>
Assets:
Investment in Master Premier Growth Trust, at value (identified
cost--$82,226) $ 61,920
Prepaid expenses 13,705
--------
Total assets 75,625
--------
-----------------------------------------------------------------------------------------
Liabilities:
Payable to distributor 36
Accrued expenses and other liabilities 14,087
--------
Total liabilities 14,123
--------
-----------------------------------------------------------------------------------------
Net Assets:
Net assets $ 61,502
========
-----------------------------------------------------------------------------------------
Net Assets Consist of:
Class I Shares of Common Stock, $.10 par value,
100,000,000 shares authorized $ 251
Class A Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 251
Class B Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 250
Class C Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 251
Paid-in capital in excess of par 98,487
Accumulated realized capital losses on investments and foreign currency
transactions from the Trust--net (24,885)
Unrealized depreciation on investments from the Trust--net (13,103)
--------
Net assets $ 61,502
========
-----------------------------------------------------------------------------------------
Net Asset Value:
Class I--Based on net assets of $15,453 and 2,510 shares outstanding $ 6.16
========
Class A--Based on net assets of $15,425 and 2,510 shares outstanding $ 6.15
========
Class B--Based on net assets of $15,282 and 2,500 shares outstanding $ 6.11
========
Class C--Based on net assets of $15,342 and 2,510 shares outstanding $ 6.11
========
-----------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
November 30, 2000 (9) Mercury Premier Growth Fund, Inc.
<PAGE>
STATEMENT OF OPERATIONS
For the Period March 20, 2000+ to November 30, 2000
--------------------------------------------------------------------------------
MERCURY PREMIER GROWTH FUND, INC.
================================================================================
Investment Income (Loss):
Investment income allocated from the Trust $ 445
Expenses allocated from the Trust (485)
--------
Net investment loss from the Trust (40)
--------
-------------------------------------------------------------------------------
Expenses:
Offering costs $ 46,709
Registration fees 2,826
Accounting services 1,908
Printing and shareholder reports 1,500
Account maintenance and distribution fees--Class C 148
Account maintenance and distribution fees--Class B 147
Transfer agent fees--Class C 134
Transfer agent fees--Class B 132
Transfer agent fees--Class I 131
Transfer agent fees--Class A 130
Account maintenance fees--Class A 37
--------
Total expenses before reimbursement 53,802
Reimbursement of expenses (53,088)
--------
Total expenses after reimbursement 714
--------
Investment loss--net (754)
--------
-------------------------------------------------------------------------------
Realized & Unrealized Loss from the Trust--Net:
Realized loss from the Trust on:
Investments--net (24,885)
Foreign currency transactions--net (4) (24,889)
--------
Unrealized depreciation on investments and foreign
currency transactions from the Trust--net (13,103)
--------
Net Decrease in Net Assets Resulting from Operations $(38,746)
========
-------------------------------------------------------------------------------
+ Commencement of operations.
See Notes to Financial Statements.
November 30, 2000 (10) Mercury Premier Growth Fund, Inc.
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS
For the Period March 20, 2000+ to November 30, 2000
--------------------------------------------------------------------------------
MERCURY PREMIER GROWTH FUND, INC.
================================================================================
Increase (Decrease) in Net Assets:
--------------------------------------------------------------------------------
Operations:
Investment loss--net $ (754)
Realized loss on investments and foreign currency transactions
from the Trust--net (24,889)
Unrealized depreciation on investments and foreign
currency transactions from the Trust--net (13,103)
---------
Net decrease in net assets resulting from operations (38,746)
---------
-------------------------------------------------------------------------------
Capital Share Transactions:
Net increase in net assets derived from capital share transactions 248
---------
-------------------------------------------------------------------------------
Net Assets:
Total decrease in net assets (38,498)
Beginning of period 100,000
---------
End of period $ 61,502
=========
-------------------------------------------------------------------------------
+ Commencement of operations.
See Notes to Financial Statements.
November 30, 2000 (11) Mercury Premier Growth Fund, Inc.
<PAGE>
FINANCIAL HIGHLIGHTS
MERCURY PREMIER GROWTH FUND, INC.
================================================================================
The following per share data and ratios have been derived from information
provided in the financial statements.
<TABLE>
<CAPTION>
For the Period March 20, 2000+ to November 30, 2000
-------------------------------------------------------
Increase (Decrease) in Net Asset Value: Class I Class A Class B Class C
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------------------------------------------------------
Investment loss--net (.04) (.06) (.10) (.10)
Realized and unrealized loss on
investments and foreign currency
transactions from the Trust--net (3.80) (3.79) (3.79) (3.79)
-------------------------------------------------------
Total from investment operations (3.84) (3.85) (3.89) (3.89)
-------------------------------------------------------
Net asset value, end of period $ 6.16 $ 6.15 $ 6.11 $ 6.11
=======================================================
---------------------------------------------------------------------------------------------------
Total Investment Return:**
Based on net asset value per share - 38.40%+++ - 38.50%+++ - 38.90%+++ - 38.90%+++
=======================================================
---------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses, net of reimbursement++ 1.46%* 1.71%* 2.47%* 2.48%*
=======================================================
Expenses++ 91.18%* 91.45%* 92.33%* 92.28%*
=======================================================
Investment loss--net (.70%)* (.95%)* (1.72%)* (1.73%)*
=======================================================
---------------------------------------------------------------------------------------------------
Supplemental Data:
Net assets, end of period (in thousands) $ 16 $ 16 $ 15 $ 15
=======================================================
---------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Total investment returns exclude the effects of sales charges.
+ Commencement of operations.
++ Includes the Fund's share of the Trust's allocated expenses.
+++ Aggregate total investment return.
See Notes to Financial Statements.
November 30, 2000 (12) Mercury Premier Growth Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MERCURY PREMIER GROWTH FUND, INC.
================================================================================
(1) Significant Accounting Policies:
Mercury Premier Growth Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a diversified mutual fund. The Fund
seeks to achieve its investment objective by investing all of its assets
in the Master Premier Growth Trust (the "Trust"), which has the same
investment objective as the Fund. The value of the Fund's investment in
the Trust reflects the Fund's proportionate interest in the net assets of
the Trust. The performance of the Fund is directly affected by the
performance of the Trust. The financial statements of the Trust, including
the Schedule of Investments, are included elsewhere in this report and
should be read in conjunction with the Fund's financial statements. 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. Prior to
commencement of operations on March 20, 2000, the Fund had no operations
other than those relating to organizational matters and the issuance of
10,000 capital shares of the Fund on February 23, 2000 to Fund Asset
Management, L.P. ("FAM") for $100,000. The Fund offers four classes of
shares. Class I and Class A Shares are sold with a front-end sales charge.
Class B and Class C Shares 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 A,
Class B and Class C 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 (except that Class B
Shares have certain voting rights with respect to Class A distribution
expenditures). The following is a summary of significant accounting
policies followed by the Fund.
(a) Valuation of investments--Valuation of securities is discussed in Note
1a of the Trust's Notes to Financial Statements, which are included
elsewhere in this report.
(b) Income--The Fund's net investment income consists of the Fund's pro
rata share of the net investment income of the Trust, less all actual and
accrued expenses of the Fund.
(c) 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 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.
(d) Prepaid registration fees--Prepaid registration fees are charged to
expense as the related shares are issued.
November 30, 2000 (13) Mercury Premier Growth Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(e) Dividends and distributions--Dividends and distributions paid by the
Fund are recorded on the ex-dividend dates.
(f) Investment transactions--Investment transactions are accounted for on
a trade date basis.
(g) Reclassification--Accounting principles generally accepted in the
United States of America require that certain components of net assets be
adjusted to reflect permanent differences between financial and tax
reporting. Accordingly, the current year's permanent book/tax differences
of $758 have been reclassified between paid-in capital in excess of par
and accumulated net investment loss and $4 has been reclassified between
accumulated net investment loss and accumulated net realized capital
losses. These reclassifications have no effect on net assets or net asset
values per share.
(2) Transactions with Affiliates:
The Trust has entered into a Distribution Agreement and Distribution Plans
with FAM Distributors, Inc. ("FAMD" or the "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
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 A .25% --
--------------------------------------------------------------------------
Class B .25% .75%
--------------------------------------------------------------------------
Class C .25% .75%
--------------------------------------------------------------------------
Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML & Co., and
selected dealers also provide account maintenance and distribution
services to the Fund. The ongoing account maintenance fee compensates the
Distributor, MLPF&S and selected dealers for providing account maintenance
services to Class A, Class B and Class C shareholders. The ongoing
distribution fee compensates the Distributor, MLPF&S and selected dealers
for providing shareholder and distribution-related services to Class B and
Class C shareholders.
For the period March 20, 2000 to November 30, 2000, FAM reimbursed the
Fund for expenses of $53,088.
November 30, 2000 (14) Mercury Premier Growth Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONCLUDED)
Financial Data Services, Inc. ("FDS"), an indirect wholly-owned subsidiary
of ML & Co., is the Fund's transfer agent.
Accounting services were provided to the Fund by FAM.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, FAMD, FDS, and/or ML & Co.
(3) Investments:
Increases and decreases in the Fund's investment in the Trust for the
period March 20, 2000 to November 30, 2000 were $186,380 and $86,429,
respectively.
(4) Capital Share Transactions:
Net increase in net assets derived from capital share transactions was
$248 for the period March 20, 2000 to November 30, 2000.
Transactions in capital shares for each class were as follows:
Class I Shares for the Period
March 20, 2000+ to November 30, 2000 Shares Dollar Amount
--------------------------------------------------------------------------
Shares sold 10 $82
------------------------------
Net increase 10 $82
==============================
--------------------------------------------------------------------------
+ Prior to March 20, 2000 (commencement of operations), the Fund
issued 2,500 shares to FAM for $25,000.
Class A Shares for the Period
March 20, 2000+ to November 30, 2000 Shares Dollar Amount
--------------------------------------------------------------------------
Shares sold 10 $83
------------------------------
Net increase 10 $83
==============================
--------------------------------------------------------------------------
+ Prior to March 20, 2000 (commencement of operations), the Fund
issued 2,500 shares to FAM for $25,000.
Class C Shares for the Period
March 20, 2000+ to November 30, 2000 Shares Dollar Amount
--------------------------------------------------------------------------
Shares sold 10 $83
------------------------------
Net increase 10 $83
==============================
--------------------------------------------------------------------------
+ Prior to March 20, 2000 (commencement of operations), the Fund
issued 2,500 shares to FAM for $25,000.
November 30, 2000 (15) Mercury Premier Growth Fund, Inc.
<PAGE>
INDEPENDENT AUDITORS' REPORT
MERCURY PREMIER GROWTH FUND, INC.
================================================================================
The Board of Directors and Shareholders,
Mercury Premier Growth Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of Mercury
Premier Growth Fund, Inc. as of November 30, 2000, the related statements of
operations and changes in net assets, and the financial highlights for the
period March 20, 2000 (commencement of operations) to November 30, 2000. These
financial statements and the financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the 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. 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
audit provides a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Mercury Premier
Growth Fund, Inc. as of November 30, 2000, the results of its operations, the
changes in its net assets, and the financial highlights for the period March 20,
2000 (commencement of operations) to November 30, 2000 in conformity with
accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
January 9, 2001
November 30, 2000 (16) Mercury Premier Growth Fund, Inc.
<PAGE>
SCHEDULE OF INVESTMENTS
MASTER PREMIER GROWTH TRUST
================================================================================
<TABLE>
<CAPTION>
In US Dollars
-----------------------
Shares Percent of
Industries Held Common Stocks Value Net Assets
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Canada
Biotechnology 69,000 +QLT PhotoTherapeutics Inc. $ 3,027,375 1.7%
-------------------------------------------------------------------------------------------
Communications 54,900 Nortel Networks Corporation 2,072,475 1.1
Equipment
-------------------------------------------------------------------------------------------
Total Common Stocks in Canada 5,099,850 2.8
-------------------------------------------------------------------------------------------
Singapore
Electronic 154,000 +Flextronics International Ltd. 3,850,000 2.1
Components
-------------------------------------------------------------------------------------------
Total Common Stocks in Singapore 3,850,000 2.1
-------------------------------------------------------------------------------------------
United States
Application 95,000 +BEA Systems, Inc 5,557,500 3.1
Development
Software
-------------------------------------------------------------------------------------------
Automotive 108,612 Harley-Davidson, Inc. 4,935,058 2.7
-------------------------------------------------------------------------------------------
Biotechnology 50,000 +Celgene Corporation 2,850,000 1.6
30,000 +Enzon, Inc. 1,665,000 0.9
40,000 +Protein Design Labs, Inc. 3,087,500 1.7
-----------------------
7,602,500 4.2
-------------------------------------------------------------------------------------------
Broadcasting/Media 82,200 Entravision Communications
Corporation (Class A) 1,176,488 0.7
-------------------------------------------------------------------------------------------
Communications 35,000 +Brocade Communications Systems, Inc. 5,877,812 3.3
Equipment 65,000 +CIENA Corporation 4,927,812 2.7
40,000 +Corvis Corporation 1,150,000 0.6
66,000 +Network Appliance, Inc. 3,258,750 1.8
50,000 +ONI Systems Corp. 2,175,000 1.2
-----------------------
17,389,374 9.6
-------------------------------------------------------------------------------------------
Computer 60,000 +Amdocs Limited 3,247,500 1.8
Services/Software 87,000 +Comverse Technology, Inc. 7,498,313 4.1
51,000 +Critical Path, Inc. 1,077,375 0.6
30,000 +i2 Technologies, Inc. 2,895,000 1.6
40,000 +Informatica Corporation 2,795,000 1.5
30,000 +Siebel Systems, Inc. 2,094,375 1.2
50,000 +VERITAS Software Corporation 4,875,000 2.7
-----------------------
24,482,563 13.5
-------------------------------------------------------------------------------------------
Electric & Gas 56,000 TNPC, Inc. 283,500 0.2
-------------------------------------------------------------------------------------------
Electrical 50,000 Power-One, Inc. 2,109,375 1.2
Equipment
-------------------------------------------------------------------------------------------
</TABLE>
November 30, 2000 (17) Mercury Premier Growth Fund, Inc.
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
In US Dollars
-----------------------
Shares Percent of
Industries Held Common Stocks Value Net Assets
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States (continued)
Electronic/ 37,200 +Applied Micro Circuits Corporation $ 1,801,875 1.0%
Semiconductors 66,000 AudioCodes Ltd. 1,072,500 0.6
68,200 +Exar Corporation 1,709,263 1.0
28,000 +PMC-Sierra, Inc. 2,579,500 1.4
2,000 Transmeta Corporation 45,125 0.0
-----------------------
7,208,263 4.0
--------------------------------------------------------------------------------------------
Fiber Optics 81,400 +Avanex Corporation 3,774,925 2.1
72,000 Corning Incorporated 4,212,000 2.3
22,100 +SDL Inc. 4,016,675 2.2
-----------------------
12,003,600 6.6
--------------------------------------------------------------------------------------------
Instruments 60,000 Applera Corporation--Applied
Biosystems Group 4,957,500 2.7
64,000 +Caliper Technologies Corp. 2,848,000 1.6
30,000 Newport Corporation 1,715,625 0.9
66,000 Waters Corporation 4,244,625 2.3
-----------------------
13,765,750 7.5
--------------------------------------------------------------------------------------------
Internet Software 18,000 +Agile Software Corporation 830,250 0.5
30,000 +VeriSign, Inc. 2,598,750 1.4
99,000 +Vignette Corporation 1,553,063 0.9
124,000 +WatchGuard Technologies, Inc. 2,821,000 1.6
-----------------------
7,803,063 4.4
--------------------------------------------------------------------------------------------
Natural Gas 50,000 Enron Corp. 3,237,500 1.8
--------------------------------------------------------------------------------------------
Networking Products 92,700 +Cisco Systems, Inc. 4,432,219 2.5
100,000 +Extreme Networks, Inc. 5,131,250 2.8
19,000 +Foundry Networks, Inc. 700,625 0.4
42,000 +Juniper Networks, Inc. 5,234,250 2.9
-----------------------
15,498,344 8.6
--------------------------------------------------------------------------------------------
Pharmaceuticals 49,500 +Millennium Pharmaceuticals, Inc. 2,400,750 1.3
75,000 Pfizer Inc. 3,323,437 1.8
-----------------------
5,724,187 3.1
--------------------------------------------------------------------------------------------
Retail--Specialty 125,000 +Bed Bath & Beyond Inc. 2,601,562 1.4
100,000 Tiffany & Co. 3,418,750 1.9
-----------------------
6,020,312 3.3
--------------------------------------------------------------------------------------------
Telecommunica- 186,400 Advanced Switching
tions & Equipment Communications, Inc. 827,150 0.5
60,000 Sonus Networks, Inc. 1,455,000 0.8
-----------------------
2,282,150 1.3
--------------------------------------------------------------------------------------------
</TABLE>
November 30, 2000 (18) Mercury Premier Growth Fund, Inc.
<PAGE>
SCHEDULE OF INVESTMENTS (CONCLUDED)
<TABLE>
<CAPTION>
In US Dollars
----------------------
Shares Percent of
Industries Held Common Stocks Value Net Assets
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States (concluded)
Wireless Communi- 44,000 +Palm, Inc. $ 1,592,250 0.9%
cation--Domestic
Paging & Cellular
-----------------------------------------------------------------------------------------------------
Total Common Stocks in the
United States 138,671,777 76.7
-----------------------------------------------------------------------------------------------------
Total Investments in Common Stocks
(Cost--$197,604,202) 147,621,627 81.6
-----------------------------------------------------------------------------------------------------
<CAPTION>
Face
Amount Short-Term Securities
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial US$2,353,000 AEP Inc., 6.50% due 12/18/2000 2,345,778 1.3
Paper* 1,400,000 Bell South Capital Funding Corporation,
6.50% due 12/05/2000 1,398,989 0.8
3,739,000 General Motors Acceptance Corp.,
6.56% due 12/01/2000 3,739,000 2.1
Verizon Global Funding:
5,000,000 6.52% due 12/04/2000 4,997,283 2.7
7,000,000 6.55% due 1/05/2001 6,955,424 3.8
-----------------------------------------------------------------------------------------------------
Total Investments in Commercial Paper 19,436,474 10.7
-----------------------------------------------------------------------------------------------------
US Government 2,664,000 Fannie Mae, 6.45% due 12/07/2000 2,661,136 1.5
Agency 3,300,000 Federal Farm Credit Bank,
Obligations* 6.45% due 12/07/2000 3,296,452 1.8
7,000,000 Freddie Mac Participation Certificates,
6.42% due 12/19/2000 6,977,530 3.9
-----------------------------------------------------------------------------------------------------
Total Investments in US Government
Agency Obligations 12,935,118 7.2
-----------------------------------------------------------------------------------------------------
Total Investments in Short-Term
Securities (Cost--$32,371,592) 32,371,592 17.9
-----------------------------------------------------------------------------------------------------
Total Investments
(Cost--$229,975,794) 179,993,219 99.5
Other Assets Less Liabilities 904,411 0.5
-----------------------
Net Assets $180,897,630 100.0%
=======================
-----------------------------------------------------------------------------------------------------
</TABLE>
+ Non-income producing security.
* Commercial Paper and certain US Government Agency Obligations are traded
on a discount basis; the interest rates shown reflect the discount rates
paid at the time of purchase by the Trust.
See Notes to Financial Statements.
November 30, 2000 (19) Mercury Premier Growth Fund, Inc.
<PAGE>
STATEMENT OF ASSETS
AND LIABILITIES
As of November 30, 2000
--------------------------------------------------------------------------------
MASTER PREMIER GROWTH TRUST
================================================================================
<TABLE>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$229,975,794) $ 179,993,219
Cash 720
Receivables:
Contributions $ 1,485,011
Dividends 16,579 1,501,590
-------------
Prepaid expenses and other assets 215,098
-------------
Total assets 181,710,627
-------------
----------------------------------------------------------------------------------------
Liabilities:
Payables:
Withdrawals 592,188
Investment adviser 118,755 710,943
-------------
Accrued expenses 102,054
-------------
Total liabilities 812,997
-------------
----------------------------------------------------------------------------------------
Net Assets:
Net assets $ 180,897,630
=============
----------------------------------------------------------------------------------------
Net Assets Consist of:
Partners' capital $ 230,880,205
Unrealized depreciation on investments--net (49,982,575)
-------------
Net assets $ 180,897,630
=============
----------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
November 30, 2000 (20) Mercury Premier Growth Fund, Inc.
<PAGE>
STATEMENT OF OPERATIONS
For the Period March 3, 2000+ to November 30, 2000
--------------------------------------------------------------------------------
MASTER PREMIER GROWTH TRUST
================================================================================
<TABLE>
<S> <C> <C>
Investment Income:
Interest and discount earned $ 1,286,140
Dividends (net of $643 foreign withholding tax) 80,665
------------
Total income 1,366,805
------------
-------------------------------------------------------------------------------------
Expenses:
Investment advisory fees $ 1,176,719
Accounting services 84,990
Custodian fees 27,140
Offering costs 21,716
Trustees' fees and expenses 14,241
Professional fees 1,502
Pricing fees 617
Other 3,948
------------
Total expenses 1,330,873
------------
Investment income--net 35,932
------------
-------------------------------------------------------------------------------------
Realized & Unrealized Loss on Investments
& Foreign Currency Transactions--Net:
Realized loss from:
Investments--net (43,851,984)
Foreign currency transactions--net (6,219) (43,858,203)
------------
Unrealized depreciation on investments--net (49,982,575)
------------
Net Decrease in Net Assets Resulting from Operations $(93,804,846)
============
-------------------------------------------------------------------------------------
</TABLE>
+ Commencement of operations.
See Notes to Financial Statements.
November 30, 2000 (21) Mercury Premier Growth Fund, Inc.
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS
For the Period March 3, 2000+ to November 30, 2000
--------------------------------------------------------------------------------
MASTER PREMIER GROWTH TRUST
================================================================================
Increase (Decrease) in Net Assets:
--------------------------------------------------------------------------------
Operations:
Investment income--net $ 35,932
Realized loss on investments--net (43,858,203)
Unrealized depreciation on investments--net (49,982,575)
-------------
Net decrease in net assets resulting from operations (93,804,846)
-------------
-------------------------------------------------------------------------------
Net Capital Contributions:
Increase in net assets derived from net capital contributions 274,602,376
-------------
-------------------------------------------------------------------------------
Net Assets:
Total increase in net assets 180,797,530
Beginning of period 100,100
-------------
End of period $ 180,897,630
=============
-------------------------------------------------------------------------------
+ Commencement of operations.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
MASTER PREMIER GROWTH TRUST
================================================================================
The following ratios have been derived from information For the Period
provided in the financial statements. March 3, 2000+
to Nov. 30, 2000
------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses .85%*
===========
Investment income--net .02%*
===========
------------------------------------------------------------------------------
Supplemental Data:
Net assets, end of period (in thousands) $ 180,898
===========
Portfolio turnover 79.97%
===========
------------------------------------------------------------------------------
* Annualized.
+ Commencement of operations.
See Notes to Financial Statements.
November 30, 2000 (22) Mercury Premier Growth Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MASTER PREMIER GROWTH TRUST
================================================================================
(1) Significant Accounting Policies:
Master Premier Growth Trust (the "Trust") is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company and is organized as a Delaware business trust. The
Trust'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 following is a
summary of significant accounting policies followed by the Trust.
(a) Valuation of investments--Portfolio securities that are traded on
stock exchanges are valued at the last sale price as of the close of
business on the day the securities are being valued or, lacking any sales,
at the closing bid price. Securities that are traded in the
over-the-counter market are valued at the last available bid price prior
to the time of valuation. Portfolio 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 readily available are valued at fair
market value, as determined in good faith by or under the direction of the
Trust's Board of Trustees.
(b) Derivative financial instruments--The Trust may engage in various
portfolio investment techniques to increase or decrease the level of risk
to which the Trust is exposed more quickly and efficiently than
transactions in other types of investments. Losses may arise due to
changes in the value of the contract or if the counterparty does not
perform under the contract.
o Financial futures contracts--The Trust 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. Upon entering into a contract, the Trust deposits and
maintains as collateral such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the contract, the Trust
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 Trust as unrealized
gains or losses. When the contract is closed, the Trust 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.
November 30, 2000 (23) Mercury Premier Growth Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
o Options--The Trust is authorized to purchase and write call and put
options. When the Trust writes an option, an amount equal to the premium
received by the Trust 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 Trust enters into a closing
transaction), the Trust realizes a gain or loss on the option to the
extent of the premiums received or paid (or a gain or loss to the extent
that the cost of the closing transaction exceeds the premium paid or
received).
Written and purchased options are non-income producing investments.
o Forward foreign exchange contracts--The Trust 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
Trust's records. However, the effect on operations is recorded from the
date the Trust enters into such contracts.
o Foreign currency options and futures--The Trust 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 Trust, sold by the Trust but not yet
delivered, or committed or anticipated to be purchased by the Trust.
(c) 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.
(d) Income taxes--The Trust is classified as a partnership for Federal
income tax purposes. As a partnership for Federal income tax purposes, the
Trust will not incur Federal income tax liability. Items of partnership
income, gain, loss and deduction will pass through to investors as
partners in the Trust. 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
accounted for on the date the securities are purchased or sold (the trade
dates). Dividend income is recorded on the ex-dividend dates. Dividends
from foreign securities where
November 30, 2000 (24) Mercury Premier Growth Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
the ex-dividend date may have passed are subsequently recorded when the
Trust 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. The Trust will adopt the provisions of the AICPA Audit and
Accounting Guide for Investment Companies, as revised, effective for
fiscal years beginning after December 15, 2000. As required, the Trust
will begin amortizing premiums and discounts on debt securities effective
December 1, 2001. Prior to this date, the Trust did not amortize premiums
or discounts on debt securities. The cumulative effect of this accounting
change will have no impact on the total net assets of the Trust. The
impact of this accounting change has not been determined but will result
in an adjustment to cost of securities and a corresponding adjustment in
net unrealized appreciation/depreciation, based on securities held as of
November 30, 2001.
(2) Investment Advisory Agreement and Transactions with Affiliates:
The Trust has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton
Services, Inc. ("PSI"), an indirect wholly-owned subsidiary of Merrill
Lynch & Co., Inc. ("ML & Co."), which is the limited partner.
FAM is responsible for the management of the Trust's investments and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Trust. For such services, the
Trust pays a monthly fee at an annual rate of .75% of the average daily
value of the Trust's net assets.
Accounting services were provided to the Trust by FAM.
Certain officers and/or trustees of the Trust are officers and/or
directors of FAM, PSI, and/or ML & Co.
(3) Investments:
Purchases and sales of investments, excluding short-term securities, for
the period March 3, 2000 to November 30, 2000 were $374,239,761 and
$132,783,697, respectively.
Net realized losses for the period March 3, 2000 to November 30, 2000 and
net unrealized losses as of November 30, 2000 were as follows:
Realized Unrealized
Losses Losses
--------------------------------------------------------------------------
Long-term Investments $(43,851,863) $(49,982,575)
Short-term Investments (121) --
Foreign currency transactions (6,219) --
-----------------------------
Total $(43,858,203) $(49,982,575)
=============================
--------------------------------------------------------------------------
November 30, 2000 (25) Mercury Premier Growth Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONCLUDED)
As of November 30, 2000, net unrealized depreciation for Federal income
tax purposes aggregated $50,520,714, of which $6,878,223 related to
appreciated securities and $57,398,937 related to depreciated securities.
At November 30, 2000, the aggregate cost of investments for Federal income
tax purposes was $230,513,933.
(4) Short-Term Borrowings:
On July 1, 2000, the Trust became party to a $1,000,000,000 credit
agreement dated as of December 3, 1999 among certain other funds managed
by FAM and its affiliates, Bank of America, N.A. and certain other
lenders. The Trust may borrow under the credit agreement to fund
shareholder redemptions and for other lawful purposes other than for
leverage. The Trust may borrow up to the maximum amount allowable under
the Trust's current prospectus and statement of additional information,
subject to various other legal, regulatory or contractual limits. The
Trust pays a commitment fee of .09% per annum based on the Trust's pro
rata share of the unused portion of the facility. Amounts borrowed under
the facility bear interest at a rate equal to, at each fund's election,
the Federal Funds rate plus .50% or a base rate as determined by Bank of
America, N.A. The Trust did not borrow under the facility during the
period March 3, 2000 to November 30, 2000. On December 1, 2000, this
credit agreement was renewed and amended with Bank One, N.A., replacing
Bank of America, N.A. as administrative agent.
(5) Capital Loss Carryforward:
At November 30, 2000, the Fund had a net capital loss carryforward of
approximately $39,656,000, all of which expires in 2008. This amount will
be available to offset like amounts of any future taxable gains.
November 30, 2000 (26) Mercury Premier Growth Fund, Inc.
<PAGE>
INDEPENDENT AUDITORS' REPORT
MASTER PREMIER GROWTH TRUST
================================================================================
The Board of Trustees and Investors,
Master Premier Growth Trust
We have audited the accompanying statement of assets and liabilities of Master
Premier Growth Trust, including the schedule of investments, as of November 30,
2000, the related statements of operations and changes in net assets, and the
financial highlights for the period March 3, 2000 (commencement of operations)
to November 30, 2000. These financial statements and the financial highlights
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and the financial highlights
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free from material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at November 30, 2000 by correspondence with the custodian. 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 audit provides a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Master Premier
Growth Trust as of November 30, 2000, the results of its operations, the changes
in its net assets, and the financial highlights for the period March 3, 2000
(commencement of operations) to November 30, 2000 in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
January 9, 2001
November 30, 2000 (27) Mercury Premier Growth Fund, Inc.
<PAGE>
OFFICERS AND DIRECTORS/TRUSTEES
Terry K. Glenn, Director/Trustee and
President
James H. Bodurtha, Director/Trustee
Herbert I. London, Director/Trustee
Joseph L. May, Director/Trustee
Andre F. Perold, Director/Trustee
Roberta Cooper Ramo, Director/Trustee
Robert C. Doll, Jr., Senior Vice President
James D. McCall, Senior Vice President
and Portfolio Manager
Donald C. Burke, Vice President and
Treasurer
Susan B. Baker, Secretary
--------------------------------------------------------------------------------
Arthur Zeikel, Director/Trustee of Mercury Premier Growth Fund, Inc. has
recently retired. The Fund's Board of Directors/Trustees wishes Mr. Zeikel well
in his retirement.
--------------------------------------------------------------------------------
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, NY 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(888) 763-2260
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.
Mercury Premier Growth Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
[RECYCLE LOGO] Printed on post-consumer recycled paper MERCPREM--11/00
