MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Quarterly Report
August 31, 1998
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Company unless
accompanied or preceded by the Company'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 Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH GLOBAL HOLDINGS, INC.
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Lawrence R. Fuller, Senior Vice President and
Portfolio Manager
Norman R. Harvey, Senior Vice President
Philip L. Kirstein, Senior Vice President
Donald C. Burke, Vice President
Gerald M. Richard, Treasurer
Philip M. Mandel, Secretary
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, NY 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
Merrill Lynch Global Holdings, Inc., August 31, 1998
DEAR SHAREHOLDER
For the quarter ended August 31, 1998, total returns for Merrill
Lynch Global Holdings, Inc.'s Class A, Class B, Class C and Class D
Shares were -13.68%, -13.96%, -13.94% and -13.68%, respectively. The
Fund underperformed the unmanaged Morgan Stanley Capital
International World Index, which had a total return of -11.46% for
the same period. (Complete performance information can be found on
pages 4 and 5 of this report to shareholders.)
Throughout the quarter, we continued the process of gradually
restructuring the portfolio in order to improve overall investment
returns. We anticipated recessionary domestic business conditions in
the major economies of Asia. It is our opinion that the slowing of
real business activity emanating from declines in consumer spending
and business activity in Asian countries will put downward pressure
on commodity prices and operating rates. Consequently, numerous
investment positions were sold during the August quarter. (For a
complete listing of transactions in the Fund during the quarter
ended August 31, 1998, see page 10 of this report to shareholders.)
During the quarter ended August 31, 1998, we added 21 companies to
the Fund. Various companies were added because we believed they
offered attractive valuation. These companies included American
International Group, Inc., Applied Materials, Inc., COMPAQ Computer
Corporation, GTE Corporation, The Gap, Inc., The Gillette Company,
Lloyds TSB PLC, METRO AG, Mannesmann AG, NationsBank Corporation and
Staples, Inc.
American International Group, Inc., a leading global commercial
insurance underwriter with a growing global presence in life
insurance, recently consummated an agreement to acquire SunAmerica
Corporation, a leading domestic underwriter of life insurance
annuity products. We believe that the profitability of Applied
Materials, Inc. could rise substantially during the next upturn in
global demand for manufacturing equipment. Also, while current
demand for semiconductor manufacturing equipment declines, we
anticipate that Applied Materials will gain market share as weaker
competitors reduce research and development for new products and/or
are acquired by stronger competitors. COMPAQ Computer Corporation
was added to the portfolio during the quarter in light of potential
benefits from the acquisition of Digital Equipment Corporation. GTE
Corporation was added to the portfolio for its broad-based wireline
and wireless customer base across a significant geographic expanse
in the United States, as well as rapid growth in value-added
commercial communication services, including Internet access and
communications.
The Gap, Inc., a very successful specialty apparel retailer, was
added in view of its above-average growth in same-store sales and
earnings. Lloyds TSB PLC, a leading commercial bank in the United
Kingdom, and The Gillette Company were both added to the Fund
because we believed they offered attractive valuations relative to
prospective rates of return and above-average growth rates in
earnings. METRO AG, a leading retailer in Germany and Europe, is
well-positioned to take advantage of an improving environment in
Germany for retail demand over the upcoming year. Mannesmann AG is a
leading multi-industry company with a large and rapidly growing
telecommunications franchise. We believe NationsBank Corporation
will be able to gain market share by taking advantage of its merger
with BankAmerica Corporation. Staples, Inc. is the leading office
supply superstore chain in the United States.
Several other companies were added to the Fund because they offered
the potential for future earnings growth. These companies included
Colt Telecom Group PLC, Abercrombie & Fitch Co., Alcatel Alsthom Cie
Generale d'Electricite S.A., Alstom, Ascend Communications, Inc.,
Dell Computer Corporation, Equant N.V., McDonald's Corporation,
Merck & Co., Inc. and MetroNet Communications Corp.
Colt Telecom Group PLC is a leading competitive access provider of
digital broadband communications services to major corporations in
Europe. Abercrombie & Fitch Co., a relatively rapid growth and well-
managed specialty retailer, anticipates substan-tial increases in
store locations and sales per store over the next five years. We
believe Alcatel Alsthom Cie Generale d'Electricite S.A. offers the
prospect of a substantial improvement in its rate of return from
reorganization and restructuring over the next five years. Alstom
was added to the Fund because of the anticipation of rapid growth in
revenues and earnings from a growing backlog of orders for power
generating and transportation equipment. Ascend Communications,
Inc., a leader in network communications equipment, recently gained
access to the local public telephone equipment market through its
acquisition of Stratus Computer Corporation. As local exchange
public telephone companies build Internet access systems, we believe
Ascend will be in a strong market position to gain a significant
share of this business.
Dell Computer Corporation was added because we saw the potential for
a continuation of significant earnings growth over the next five
years as corporations continue to build major operational networks
of server computers, desktop computers and workstations. Recent
government surveys indicate that corporate investment in technology
equipment continues to grow at a double-digit rate, as many
corporations shift from large traditional data centers to
distributed computing where data bases and application programs are
shared by employees, customers and suppliers over a global
communication infrastructure.
Equant N.V. was added to the Fund because of the potential for a
substantial increase in earnings growth and rising rates of return
from the contractual sale of its global commercial communications
system, which it operates for the global airline industry. We
believe McDonald's Corporation's renewed management effort to
restructure and downsize could bring about improved earnings. Merck
& Co., Inc. is likely to realize growth in revenues and earnings
from new pharmaceutical products over the next five years. In our
estimation, many investors are too pessimistic about the loss of
current revenues and earnings from the expiration of patents on
existing products. We added MetroNet Communications Corp., a leading
competitive access provider of telecommunication services in Canada,
because we believe the company could experience an above-average
rate of growth in revenues and market share over the next five
years.
In Conclusion
On April 15, 1998, the Fund's Board of Directors approved a plan of
reorganization whereby Merrill Lynch Global Growth Fund, Inc. would
acquire substantially all of the assets and assume substantially all
of the liabilities of the Fund in exchange for newly issued shares
of Merrill Lynch Global Growth Fund, Inc. Merrill Lynch Global
Growth Fund, Inc. is a registered, diversified, open-end management
investment company. Both entities have similar investment objectives
and are managed by Merrill Lynch Asset Management, L.P. If all the
requisite approvals are obtained, it is anticipated that the
reorganization will take place during the first quarter of 1999.
We thank you for your investment in Merrill Lynch Global Holdings,
Inc.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Lawrence R. Fuller)
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
October 6, 1998
Merrill Lynch Global Holdings, Inc., August 31, 1998
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after approximately 8 years. (There is no initial
sales charge for 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>
Ten Years/
12 Month 3 Month Since Inception
Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* -5.41% -13.68% +144.17%
ML Global Holdings, Inc. Class B Shares* -6.37 -13.96 +107.06
ML Global Holdings, Inc. Class C Shares* -6.38 -13.94 + 24.08
ML Global Holdings, Inc. Class D Shares* -5.60 -13.68 + 28.01
MSCI World Index** +3.74 -11.46 +159.10/+133.16/+54.48
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included. Total
investment returns are based on changes in net asset values for the
periods shown, and assume reinvestment of all dividends and capital
gains distributions at net asset value on the ex-dividend date. The
Company's ten-year/since inception periods are: Class A Shares, ten
years ended 8/31/98; Class B Shares, from 10/21/88 to 8/31/98; and
Class C & Class D Shares, from 10/21/94 to 8/31/98.
**The Morgan Stanley Capital International World Index is an
unmanaged US dollar-denominated index of world stock markets
compiled by Capital International Perspective S.A. and published in
Morgan-Stanley Capital International Perspective. Ten years/since
inception total returns are: for the ten years ended 8/31/98; from
10/31/88 to 8/31/98; and from 10/31/94 to 8/31/98, respectively.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/98 + 7.43% + 1.79%
Five Years Ended 6/30/98 +11.81 +10.61
Ten Years Ended 6/30/98 +10.49 + 9.90
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 6/30/98 + 6.35% + 2.52%
Five Years Ended 6/30/98 +10.66 +10.66
Inception (10/21/88) through 6/30/98 + 9.45 + 9.45
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 6/30/98 + 6.25% + 5.29%
Inception (10/21/94) through 6/30/98 +10.30 +10.30
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 6/30/98 + 7.14% +1.51%
Inception (10/21/94) through 6/30/98 +11.19 +9.58
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
PORTFOLIO INFORMATION
Worldwide
Investments
As of 8/31/98
Percent of
Ten Largest Industries Net Assets
Banking 16.5%
Electronics 8.0
Telecommunications 6.6
Software--Computer 6.1
Pharmaceuticals 4.9
Communications Equipment 4.5
Retail Specialty 4.1
Computer Services 3.9
Multi-Industry 3.4
Computers 3.4
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
SAP AG (Preferred) Germany 5.1%
Capita Group PLC United Kingdom 3.9
Pfizer, Inc. United States 3.0
CVS Corporation United States 2.9
Cisco Systems, Inc. United States 2.9
Cap Gemini S.A. France 2.8
Wachovia Corporation United States 2.6
Royal Bank of Scotland Group
PLC (The) United Kingdom 2.6
National Westminster Bank PLC
(Ordinary) United Kingdom 2.4
Federated Department Stores,
Inc. United States 2.3
Merrill Lynch Global Holdings, Inc., August 31, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
LATIN Shares Percent of
AMERICA Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Banking 146,875 Banco de Galicia y Buenos
Aires S.A. (ADR)* $ 3,084,280 $ 1,679,883 0.6%
Multi-Industry 278,810 Compania Naviera Perez
Companc S.A.C.F.I.M.F.A. 1,023,485 1,104,331 0.4
Total Investments in Argentina 4,107,765 2,784,214 1.0
Brazil Telecommunications 30,000,000 Telecommunicacoes Brasileiras
S.A.--Telebras PN
(Preferred) 1,069,928 2,128,654 0.8
Total Investments in Brazil 1,069,928 2,128,654 0.8
Mexico Chemicals 150,000 DESC, Sociedad de Fomento
Industrial, S.A. de C.V.
(ADR)* 4,366,491 2,325,000 0.8
Financial Services 2,000,000 Grupo Financiero Banorte,
S.A. de C.V. (Class B) 2,113,918 1,023,583 0.4
Total Investments in Mexico 6,480,409 3,348,583 1.2
Panama Banking 75,000 Banco Latinoamericano de
Exportaciones, S.A. (E Shares) 3,704,425 1,340,625 0.5
Total Investments in Panama 3,704,425 1,340,625 0.5
Total Investments in
Latin America 15,362,527 9,602,076 3.5
NORTH
AMERICA
Canada Communications 20,000 Northern Telecom Ltd. 294,975 955,000 0.4
Equipment
Telecommunications 50,000 MetroNet Communications Corp.
(Class B Non-Voting Shares) 1,450,921 881,250 0.3
Total Investments in Canada 1,745,896 1,836,250 0.7
United States Banking 240,000 Bank of New York Company,
Inc. (The) 3,130,284 5,805,000 2.1
30,000 NationsBank Corporation 1,974,675 1,710,000 0.6
95,000 Northern Trust Corporation 3,777,776 5,296,250 1.9
100,000 Wachovia Corporation 7,170,595 7,331,250 2.6
------------ ------------ ------
16,053,330 20,142,500 7.2
Communications 20,000 Ascend Communications, Inc. 946,479 702,500 0.3
Equipment 97,500 Cisco Systems, Inc. 3,206,875 7,982,813 2.9
------------ ------------ ------
4,153,354 8,685,313 3.2
Computers 100,000 COMPAQ Computer Corporation 3,515,380 2,793,750 1.0
30,000 Dell Computer Corporation 2,466,042 2,998,125 1.1
------------ ------------ ------
5,981,422 5,791,875 2.1
Cosmetics 35,000 Gillette Company (The) 1,526,872 1,439,375 0.5
Electronics 85,000 Intel Corp. 1,087,344 6,050,938 2.2
90,000 Texas Instruments Inc. 2,012,563 4,291,875 1.5
------------ ------------ ------
3,099,907 10,342,813 3.7
Environmental Control 200,000 US Filter Corp. 6,297,223 3,600,000 1.3
Insurance 35,000 American International
Group, Inc. 3,121,356 2,705,938 1.0
Medical Technology 50,000 Boston Scientific Corp. 2,291,520 3,462,500 1.2
50,000 Johnson & Johnson 2,709,250 3,450,000 1.2
------------ ------------ ------
5,000,770 6,912,500 2.4
Pharmaceuticals 25,000 Bristol-Myers Squibb Co. 2,432,138 2,446,875 0.9
25,000 Merck & Co., Inc. 3,201,345 2,898,438 1.0
90,000 Pfizer, Inc. 2,529,031 8,370,000 3.0
------------ ------------ ------
8,162,514 13,715,313 4.9
Restaurants 20,000 McDonald's Corporation 1,351,190 1,121,250 0.4
Retail 150,000 Federated Department
Stores, Inc. 4,921,701 6,534,375 2.3
Retail Specialty 12,500 Abercrombie & Fitch Co. 603,875 537,500 0.2
220,000 CVS Corporation 5,633,409 8,002,500 2.9
25,000 Gap, Inc. (The) 1,573,700 1,276,563 0.5
50,000 Staples, Inc. 1,585,415 1,356,250 0.5
------------ ------------ ------
9,396,399 11,172,813 4.1
Semiconductors 35,000 Applied Materials, Inc. 1,062,033 859,687 0.3
Software--Computer 25,000 Microsoft Corporation 2,272,500 2,398,437 0.9
Telecommunications 30,000 GTE Corporation 1,504,497 1,500,000 0.5
60,000 Sprint Corporation 4,260,474 4,023,750 1.4
------------ ------------ ------
5,764,971 5,523,750 1.9
Total Investments in the
United States 78,165,542 100,945,939 36.2
Total Investments in
North America 79,911,438 102,782,189 36.9
PACIFIC BASIN/
ASIA
Australia Broadcasting & 351,883 News Corp., Ltd. (Ordinary) 1,873,092 2,151,652 0.8
Publishing
Total Investments in Australia 1,873,092 2,151,652 0.8
Hong Kong Multi-Industry 400,000 Hutchison Whampoa Ltd. 1,949,838 1,734,484 0.6
Total Investments in Hong Kong 1,949,838 1,734,484 0.6
Japan Broadcasting & 300,000 Tokyo Broadcasting System, Inc. 3,736,661 2,847,429 1.0
Publishing
Computers 300,000 NEC Corporation 3,767,865 2,212,070 0.8
60,000 Tokyo Electron Ltd. 1,883,701 1,381,215 0.5
------------ ------------ ------
5,651,566 3,593,285 1.3
Electrical Equipment 200,000 Matsushita Electric
Industrial Co. 2,837,637 2,875,761 1.0
250,000 Sumitomo Electric
Industry, Ltd. 2,791,441 2,098,385 0.8
------------ ------------ ------
5,629,078 4,974,146 1.8
Electronics 30,000 Keyence Corp. 2,162,440 3,025,924 1.1
90,000 Murata Manufacturing Co., Ltd. 2,616,519 2,970,676 1.0
------------ ------------ ------
4,778,959 5,996,600 2.1
Insurance 200,000 Tokio Marine & Fire Insurance
Co., Ltd. 2,445,116 1,646,126 0.6
Leisure 30,000 Sony Corporation 2,723,742 2,190,820 0.8
</TABLE>
Merrill Lynch Global Holdings, Inc., August 31, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
PACIFIC BASIN/
ASIA Shares Percent of
(concluded) Industries Held Investments Cost Value Net Assets
<S> <S> <C> <S> <C> <C> <C>
Japan Machinery & 500,000 Mitsubishi Heavy
(concluded) Equipment Industries Ltd. $ 3,654,177 $ 1,820,371 0.7%
Machinery & 350,000 Minebea Co., Ltd. 2,942,184 3,550,078 1.3
Machine Tools
Merchandising 40,000 Ito-Yokado Co., Ltd. 1,760,352 1,861,453 0.7
150,000 Marui Co., Ltd. 2,736,736 2,114,322 0.7
------------ ------------ ------
4,497,088 3,975,775 1.4
Photography 100,000 Canon Inc. 1,758,792 2,029,324 0.7
Telecommunications 400 Nippon Telegraph & Telephone
Corporation (NTT) (Ordinary) 3,217,188 3,031,590 1.1
Total Investments in Japan 41,034,551 35,655,544 12.8
Singapore Banking 380,000 Overseas Chinese Banking Corp. 3,284,321 980,507 0.4
Construction & 330,000 City Development Ltd. 2,201,466 580,056 0.2
Housing
Newspaper/Publishing 242,440 Singapore Press Holdings
Limited 2,976,641 1,707,324 0.6
Total Investments in Singapore 8,462,428 3,267,887 1.2
Total Investments in the
Pacific Basin/Asia 53,319,909 42,809,567 15.4
WESTERN
EUROPE
Finland Communications 10,000 Nokia OYAS 'A' 281,408 719,787 0.3
Equipment
Total Investments in Finland 281,408 719,787 0.3
France Communications 10,000 Alcatel Alsthom Cie Generale
Equipment d'Electricite S.A. 2,030,680 1,615,769 0.6
Electronics 70,000 STMicroelectronics N.V.
(NY Registered Shares) 4,033,757 3,653,125 1.3
Food 15,000 Groupe Danone S.A. 3,569,363 3,969,207 1.4
Information 50,000 Cap Gemini S.A. 5,924,235 7,867,355 2.8
Processing
Machinery & Equipment 40,000 Alstom 1,363,259 933,931 0.4
Total Investments in France 16,921,294 18,039,387 6.5
Germany Banking 70,000 Deutsche Bank AG 4,697,032 4,356,879 1.6
Multi-Industry 10,000 Mannesmann AG 894,924 902,128 0.3
110,000 VEBA AG 5,056,239 5,547,121 2.0
------------ ------------ ------
5,951,163 6,449,249 2.3
Retail Stores 40,000 METRO AG 2,276,637 2,258,156 0.8
Software--Computer 25,000 SAP AG (Preferred) 10,863,036 14,184,397 5.1
Total Investments in Germany 23,787,868 27,248,681 9.8
Netherlands Leisure 10,000 Philips Electronics N.V. 295,301 652,622 0.2
Software--Computer 10,000 Baan Company N.V. (NY
Registered Shares) 116,946 292,624 0.1
Telecommunications 52,200 Equant N.V. 1,950,528 2,199,103 0.8
Total Investments in the
Netherlands 2,362,775 3,144,349 1.1
Portugal Building Products 200,000 Cimpor--Cimentos de Portugal,
SGPS S.A. 4,062,517 6,036,106 2.1
Finance 170,000 BPI--SGPS S.A. (Registered
Shares) 3,235,660 5,510,079 2.0
Total Investments in Portugal 7,298,177 11,546,185 4.1
Spain Services 400,000 Prosegur Compania de
Seguridad S.A. 4,176,481 5,075,464 1.8
Total Investments in Spain 4,176,481 5,075,464 1.8
Sweden Environmental 325,000 Munters AB 3,401,427 2,553,040 0.9
Control
Total Investments in Sweden 3,401,427 2,553,040 0.9
United Banking 285,000 Lloyds TSB PLC 3,984,525 3,403,074 1.2
Kingdom 385,000 National Westminster
Bank PLC (Ordinary) 7,320,642 6,789,318 2.4
500,000 Royal Bank of Scotland
Group PLC (The) 5,132,385 7,100,728 2.6
------------ ------------ ------
16,437,552 17,293,120 6.2
Building 300,000 Berkeley Group PLC (The) 2,993,449 2,587,411 0.9
Computer Services 1,100,000 Capita Group PLC 5,091,189 10,868,803 3.9
Electronics 2,100,000 Astec (BSR) PLC 3,743,542 2,426,640 0.9
Insurance 500,000 Royal & Sun Alliance
Insurance Group PLC 6,672,402 4,203,497 1.5
Multi-Industry 100,000 Siebe PLC 372,866 351,687 0.1
Telecommunications 106,000 Colt Telecom Group PLC 5,096,200 4,557,780 1.7
Total Investments in the
United Kingdom 40,407,200 42,288,938 15.2
Total Investments in
Western Europe 98,636,630 110,615,831 39.7
SHORT-TERM Face
SECURITIES Amount Issue
United Commercial US$ 8,000,000 Concord Minutemen Capital Co.
States Paper** LLC, 5.54% due 9/09/1998 7,990,151 7,990,151 2.9
9,090,000 General Motors Acceptance
Corp., 5.81% due 9/01/1998 9,090,000 9,090,000 3.2
Total Investments in
Short-Term Securities 17,080,151 17,080,151 6.1
Total Investments $264,310,655 282,889,814 101.6
============
Liabilities in Excess of Other Assets (4,320,492) (1.6)
------------ ------
Net Assets $278,569,322 100.0%
============ ======
Net Asset Value: Class A--Based on net assets of $246,498,864 and
19,061,048 shares outstanding $ 12.93
============
Class B--Based on net assets of $23,673,465 and
1,928,605 shares outstanding $ 12.27
============
Class C--Based on net assets of $1,012,243 and
82,852 shares outstanding $ 12.22
============
Class D--Based on net assets of $7,384,750 and
573,997 shares outstanding $ 12.87
============
<FN>
*American Depositary Receipts (ADR).
**Commercial Paper is traded on a discount basis; the interest rates
shown reflect the discount rates paid at the time of purchase by the
Company.
</TABLE>
Merrill Lynch Global Holdings, Inc., August 31, 1998
PORTFOLIO CHANGES
For the Quarter Ended August 31, 1998
Additions
Abercrombie & Fitch Co.
Alcatel Alsthom Cie Generale d'Electricite S.A.
Alstom
American International Group, Inc.
Applied Materials, Inc.
Ascend Communications, Inc.
COMPAQ Computer Corporation
Colt Telecom Group PLC
Dell Computer Corporation
Equant N.V.
GTE Corporation
Gap, Inc. (The)
Gillette Company (The)
Lloyds TSB PLC
METRO AG
Mannesmann AG
McDonald's Corporation
Merck & Co., Inc.
MetroNet Communications Corp. (Class B Non-Voting
Shares)
NationsBank Corporation
Staples, Inc.
Deletions
Agrium, Inc.
Akzo Nobel N.V.
Aracruz Celulose S.A. (ADR)
BBA Group PLC
Dassault Systemes S.A.
Gucci Group N.V.
Heidelberger Druckmaschinen AG
Home Depot, Inc.
Mercury General Corp.
Mitsui Fudosan Co., Ltd.
NICE--Systems Ltd. (ADR)
OfficeMax, Inc.
Olicom A/S
PETsMART Inc.
PMI Group, Inc. (The)
Roche Holdings Ltd.
SKW Trostberg AG
Societe Nationale Elf Aquitane S.A.
Stone Container Corporation
