MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Annual Report
November 30, 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.
Worldwide
Investments
As of 11/30/98
Percent of
Ten Largest Industries Net Assets
Banking 17.1%
Electronics 9.6
Telecommunications 7.5
Pharmaceuticals 5.9
Software--Computer 5.8
Retail Specialty 5.3
Communications Equipment 4.8
Multi-Industry 4.2
Retail Stores 3.9
Computer Services 3.6
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
SAP AG (Systeme, Anwendungen,
Produkte in der
Datenverarbeitung)(Preferred) Germany 4.6%
Cisco Systems, Inc. United States 3.8
CVS Corporation United States 3.8
Capita Group PLC United Kingdom 3.6
Pfizer Inc. United States 3.5
Intel Corporation United States 3.2
Wachovia Corporation United States 3.0
The Bank of New York Company, Inc. United States 2.8
Northern Trust Corporation United States 2.7
Royal Bank of Scotland Group PLC United Kingdom 2.6
Merrill Lynch Global Holdings, Inc., November 30, 1998
DEAR SHAREHOLDER
Fiscal Year in Review
For the year ended November 30, 1998, total returns for Merrill
Lynch Global Holdings, Inc.'s Class A, Class B, Class C and Class D
Shares were +11.41%, +10.32%, +10.21% and +11.19%, respectively.
During the same period, the total return of the unmanaged Morgan
Stanley Capital International (MSCI) World Stock Index was +19.99%,
in US dollar terms, and the total return for the Lipper Analytical
Services' Global Funds Average was +10.57%. The fund performed
virtually in line with the average investment performance of other
actively managed global funds.
Examining the annual performance on a quarterly basis reveals
strategy changes that improved results as the fiscal year unfolded.
The relative underperformance of the fund compared to the MSCI World
Stock Index during the first fiscal quarter was a result of the
fund's significant weighting in Japan and other Asian countries.
Also, the portfolio had substantial weightings in mid-size energy
companies and industrial companies in Asia and Europe, which also
underperformed their respective stock markets. During the second
half of the fund's fiscal year, we began restructuring the
portfolio. We eliminated many of our holdings in Asian companies and
mid-size energy and industrial companies in Europe and the United
States. The fund underperformed its benchmark during the fiscal
quarter ended August 31, 1998, since we had not yet completed the
restructuring and the month of August represented the largest
percentage decline in the US stock market since the 1930s. Although
the fund did not outperform the MSCI World Stock Index in the
November quarter, it did outperform other global funds as
represented by the average total return for Lipper Global Funds.
Portfolio Matters
For the quarter ended November 30, 1998, total returns for Merrill
Lynch Global Holdings, Inc.'s Class A, Class B, Class C and Class D
Shares were +13.92%, +13.69%, +13.58% and +13.83%, respectively, in
line with the total return for the Lipper Global Funds Average of
+13.45%. The total return for the unmanaged MSCI World Stock Index
for the November quarter was +17.51%. We continued to restructure
the fund during the November quarter. We reduced our exposure to
companies in Japan since we believed that business and consumer
market conditions were continuing to deteriorate. Also, we
liquidated equity investments in other Asian markets in response to
the ongoing declines in consumer spending and the tightening of
fiscal policies in many countries. We eliminated select equity
holdings in Europe and Latin America as a result of the continued
slowdown in real economic growth in these regions and the rising
probabilities of recessions.
As a result of the restructuring of Telebras PN in Brazil, the fund
received the new shares of the subsidiaries of Telebras PN.
Consequently, the investment in Telebras PN provided the fund with
equity holdings in 13 telecommunications companies. We liquidated
the investments in three of these companies, which we considered
relatively unattractive investments. We added CBS Corporation,
Chancellor Media Corporation and Clear Channel Communications, Inc.
to the portfolio during the November quarter. These companies are
the leading radio broadcast networks in the United States. Also, CBS
Corporation is one of the leading television networks. We believe
that the ongoing consolidation in the radio broadcast business under
current deregulation policies will result in gains from advertising
and pricing for the largest networks. Also, there are major
operational cost advantages for the largest networks. Under its new
management, CBS Corporation is restructuring not only its radio
broadcast business, but also television production and
administration.
In Conclusion
We intend to continue to work toward achieving improved investment
returns through our gradual restructuring of the portfolio. We have
made major progress by reducing the fund's exposure to companies in
Asia. Also, our shift from energy companies and industrial
organizations in both the United States and Europe has improved the
risk profile of the fund, in our opinion. If recessionary conditions
continue in Asia and start to appear in the major countries of
Europe, we believe the fund will be better positioned than before
the restructuring. We appreciate 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
January 13, 1999
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Roland M. Machold, 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., November 30, 1998
PERFORMANCE DATA
About Fund Performance
Investors are able to purchase shares of the fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.75% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after approximately 8 years. (There is no initial
sales charge for automatic share conversions.)
* Class C Shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. Figures shown in the "Recent Performance
Results" and "Average Annual Total Return" tables assume
reinvestment of all dividends and capital gains distributions at net
asset value on the ex-dividend date. Investment return and principal
value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Dividends paid to each
class of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
Total Return
Based on a
$10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the Morgan Stanley Capital International World Stock
Index. Beginning and ending values are:
11/88 11/98
ML Global Holdings, Inc.++--
Class A Shares* $ 9,475 $24,294
ML Global Holdings, Inc.++--
Class B Shares* $10,000 $23,150
Morgan Stanley Capital International
World Stock Index++++ $10,000 $26,485
A line graph depicting the growth of an investment in the Fund's
Class C and Class D Shares compared to growth of an investment in
the Morgan Stanley Capital International World Stock Index.
Beginning and ending values are:
10/21/94** 11/98
ML Global Holdings, Inc.++--
Class C Shares* $10,000 $14,093
ML Global Holdings, Inc.++--
Class D Shares* $ 9,475 $13,807
Morgan Stanley Capital International
World Stock Index++++ $10,000 $18,154
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Global Holdings, Inc. invests in an internationally diversified
portfolio of securities.
++++This unmanaged market capitalization-weighted Index is comprised
of a representative sampling of stocks of large-, medium-, and small-
capitalization companies in 22 countries, including the United
States. The starting date for the Index in the Class C and Class D
Shares graph is 10/31/94.
Past performance is not predictive of future performance.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/98 -10.79% -15.47%
Five Years Ended 9/30/98 + 6.81 + 5.67
Ten Years Ended 9/30/98 + 9.08 + 8.49
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/98 -11.68% -14.81%
Five Years Ended 9/30/98 + 5.71 + 5.71
Inception (10/21/88) through 9/30/98 + 7.62 + 7.62
[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 9/30/98 -11.71% -12.49%
Inception (10/21/94) through 9/30/98 + 5.67 + 5.67
[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 9/30/98 -11.01% -15.68%
Inception (10/21/94) through 9/30/98 + 6.53 + 5.08
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Holdings, Inc., November 30, 1998
PERFORMANCE DATA (concluded)
<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* +11.41% +13.92% +156.37%
ML Global Holdings, Inc. Class B Shares* +10.32 +13.69 +131.52
ML Global Holdings, Inc. Class C Shares* +10.21 +13.58 + 40.93
ML Global Holdings, Inc. Class D Shares* +11.19 +13.83 + 45.72
World Stock Index** +19.99 +17.51 +164.84/+81.53
<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 & Class B
Shares, ten years ended 11/30/98 and Class C & Class D Shares, from
10/21/94 to 11/30/98.
**The Morgan Stanley Capital International World Stock 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 11/30/98 and
from 10/31/94 to 11/30/98, respectively.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
LATIN Shares Value Percent of
AMERICA Industries Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Multi-Industry 278,810 Perez Companc S.A. (Class B) $ 1,023,485 $ 1,450,059 0.5%
Total Investments in Argentina 1,023,485 1,450,059 0.5
Brazil Telecommunications 30,000,000 ++Embratel Participacoes S.A.
(Preferred) 347,556 487,175 0.2
30,000,000 ++Tele Centro Oeste Celular
Participacoes S.A. (Preferred) 17,378 46,969 0.0
30,000,000 ++Tele Centro Sul Participacoes S.A.
(Preferred) 260,667 349,517 0.1
30,000,000 ++Tele Leste Celular Participacoes
S.A. (Preferred) 21,722 24,733 0.0
30,000,000 ++Tele Nordeste Celular Participacoes
S.A. (Preferred) 11,296 39,474 0.0
30,000,000 ++Tele Norte Celular Participacoes
S.A. (Preferred) 17,378 23,984 0.0
30,000,000 ++Tele Sudeste Celular Participacoes
S.A. (Preferred) 78,200 162,392 0.1
30,000,000 ++Telecommunicacoes Brasileiras S.A.--
Telebras (Preferred) 10,427 5,247 0.0
30,000,000 ++Telesp Celular Participacoes S.A.
(Preferred) 341,039 309,793 0.1
30,000,000 ++Telesp Participacoes S.A. (Preferred) 821,536 841,939 0.3
Total Investments in Brazil 1,927,199 2,291,223 0.8
Total Investments in Latin America 2,950,684 3,741,282 1.3
North
America
Canada Communications 20,000 Northern Telecom Limited 294,975 933,750 0.3
Equipment
Telecommunications 50,000 ++MetroNet Communications Corp.
(Class B) 1,450,921 1,321,875 0.5
Total Investments in Canada 1,745,896 2,255,625 0.8
United Banking 240,000 The Bank of New York Company, Inc. 3,130,284 8,220,000 2.8
States 30,000 BankAmerica Corporation 1,974,675 1,955,625 0.7
95,000 Northern Trust Corporation 3,777,776 7,659,375 2.7
100,000 Wachovia Corporation 7,170,595 8,731,250 3.0
------------ ------------ ------
16,053,330 26,566,250 9.2
Broadcasting-- 25,000 CBS Corporation 630,560 745,312 0.3
Radio & Television 15,000 ++Chancellor Media Corporation 397,036 565,312 0.2
20,000 ++Clear Channel Communications, Inc. 813,182 935,000 0.3
------------ ------------ ------
1,840,778 2,245,624 0.8
Communications 20,000 ++Ascend Communications, Inc. 946,478 1,122,500 0.4
Equipment 146,250 ++Cisco Systems, Inc. 3,206,875 11,023,594 3.8
------------ ------------ ------
4,153,353 12,146,094 4.2
Computers 100,000 COMPAQ Computer Corporation 3,515,380 3,250,000 1.1
60,000 ++Dell Computer Corporation 2,466,042 3,645,000 1.3
------------ ------------ ------
5,981,422 6,895,000 2.4
Cosmetics 35,000 Gillette Company 1,526,871 1,607,812 0.6
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
NORTH AMERICA Shares Value Percent of
(concluded) Industries Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Electronics 85,000 Intel Corporation $ 1,087,344 $ 9,142,812 3.2%
States 90,000 Texas Instruments Inc. 2,012,562 6,873,750 2.4
(concluded) ------------ ------------ ------
3,099,906 16,016,562 5.6
Insurance 35,000 American International Group, Inc. 3,121,356 3,290,000 1.1
Medical Technology 5,000 ++Boston Scientific Corporation 229,152 247,500 0.1
50,000 Johnson & Johnson 2,709,250 4,062,500 1.4
------------ ------------ ------
2,938,402 4,310,000 1.5
Pharmaceuticals 25,000 Bristol-Myers Squibb Company 2,432,137 3,064,062 1.1
25,000 Merck & Co., Inc. 3,201,345 3,871,875 1.3
90,000 Pfizer Inc. 2,529,031 10,046,250 3.5
------------ ------------ ------
8,162,513 16,982,187 5.9
Restaurants 20,000 McDonald's Corporation 1,351,190 1,401,250 0.5
Retail Specialty 12,500 ++Abercrombie & Fitch Co. (Class A) 603,875 700,000 0.3
220,000 CVS Corporation 5,633,409 10,862,500 3.8
25,000 The Gap, Inc. 1,573,700 1,839,062 0.6
50,000 ++Staples, Inc. 1,585,415 1,743,750 0.6
------------ ------------ ------
9,396,399 15,145,312 5.3
Retail Stores 150,000 ++Federated Department Stores, Inc. 4,921,701 6,253,125 2.2
Semiconductors 17,000 ++Applied Materials, Inc. 515,845 658,750 0.2
Software--Computer 25,000 ++Microsoft Corporation 2,272,500 3,050,000 1.1
Telecommunications 30,000 GTE Corporation 1,504,497 1,860,000 0.6
60,000 Sprint Corporation (Fon Group) 3,775,435 4,365,000 1.5
30,000 ++Sprint Corporation (PCS Group) 485,039 480,000 0.2
------------ ------------ ------
5,764,971 6,705,000 2.3
Total Investments in the
United States 71,100,537 123,272,966 42.9
Total Investments in North America 72,846,433 125,528,591 43.7
Pacific Basin/
Asia
Australia Broadcasting & 500,000 The News Corporation Limited 2,922,428 3,512,791 1.2
Publishing
Total Investments in Australia 2,922,428 3,512,791 1.2
Hong Kong Multi-Industry 400,000 Hutchison Whampoa Limited 1,949,838 2,841,459 1.0
Total Investments in Hong Kong 1,949,838 2,841,459 1.0
Japan Electrical 200,000 Matsushita Electric Industrial
Equipment Company, Ltd. 2,837,637 3,218,466 1.1
250,000 Sumitomo Electric Industries 2,791,441 2,722,692 1.0
------------ ------------ ------
5,629,078 5,941,158 2.1
Electronics 30,000 Keyence Corporation 2,162,440 3,389,142 1.2
90,000 Murata Manufacturing Co., Ltd. 2,616,519 3,525,683 1.2
------------ ------------ ------
4,778,959 6,914,825 2.4
Leisure 10,000 Sony Corporation 847,524 732,282 0.3
Machinery & 350,000 Minebea Co., Ltd. 2,942,184 3,763,410 1.3
Machine Tools
Photography 100,000 Canon, Inc. 1,758,792 2,210,663 0.8
Retail Stores 40,000 Ito-Yokado Co., Ltd. 1,760,352 2,444,733 0.8
Telecommunications 400 Nippon Telegraph & Telephone
Corporation (NTT) 3,217,188 2,990,898 1.0
Total Investments in Japan 20,934,077 24,997,969 8.7
Total Investments in the Pacific
Basin/Asia 25,806,343 31,352,219 10.9
Western Europe
Finland Communications 10,000 Nokia Oyj (Class A) 281,408 978,694 0.3
Equipment
Total Investments in Finland 281,408 978,694 0.3
France Electrical Equipment 10,000 ++Alstom 340,815 234,753 0.1
Electronics 70,000 ++STMicroelectronics N.V. (NY
Registered Shares) 4,033,757 4,698,750 1.6
Food 15,000 Groupe Danone 3,569,363 4,391,689 1.5
Information 50,000 Cap Gemini S.A. 5,924,235 7,337,119 2.6
Processing
Total Investments in France 13,868,170 16,662,311 5.8
Germany Banking 70,000 Deutsche Bank AG 4,697,032 4,335,404 1.5
Multi-Industry 13,000 Mannesmann AG 1,155,677 1,411,121 0.5
110,000 VEBA AG 5,056,239 6,116,534 2.1
------------ ------------ ------
6,211,916 7,527,655 2.6
Retail Stores 40,000 Metro AG 2,276,637 2,502,218 0.9
40,000 Metro AG (Rights) (a) 0 85,892 0.0
------------ ------------ ------
2,276,637 2,588,110 0.9
Software--Computer 25,000 SAP AG (Systeme, Anwendungen,
Produkte in der Datenverarbeitung)
(Preferred) 10,863,036 13,058,267 4.6
Total Investments in Germany 24,048,621 27,509,436 9.6
Netherlands Leisure 10,000 Koninklijke (Royal) Philips
Electronics N.V. 295,300 634,704 0.2
Software--Computer 10,000 ++Baan Company, N.V. 116,946 120,646 0.1
Telecommunications 52,200 ++Equant N.V. 1,950,528 2,946,136 1.0
Total Investments in the Netherlands 2,362,774 3,701,486 1.3
Portugal Building Products 200,000 Cimpor-Cimentos de Portugal,
SGPS, S.A. 4,062,517 6,347,430 2.2
Finance 170,000 BPI-SGPS S.A. (Registered Shares) 3,235,660 5,536,549 1.9
Total Investments in Portugal 7,298,177 11,883,979 4.1
Spain Services 400,000 Prosegur, CIA de Seguridad S.A.
(Registered) 4,176,481 4,866,857 1.7
Total Investments in Spain 4,176,481 4,866,857 1.7
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1998
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN EUROPE Shares Value Percent of
(concluded) Industries Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Banking 285,000 Lloyds TSB Group PLC $ 3,984,525 $ 3,962,336 1.4%
Kingdom 385,000 National Westminster Bank PLC
(Ordinary) 7,320,642 7,026,717 2.4
500,000 Royal Bank of Scotland Group PLC 5,132,385 7,533,163 2.6
------------ ------------ ------
16,437,552 18,522,216 6.4
Computer Services 1,100,000 Capita Group PLC 5,091,189 10,346,754 3.6
Insurance 500,000 Royal & Sun Alliance Insurance
Group PLC 6,672,402 4,175,006 1.5
Multi-Industry 100,000 Siebe PLC 372,866 359,744 0.1
Telecommunications 424,000 ++COLT Telecom Group PLC 5,096,200 5,541,504 1.9
Total Investments in the
United Kingdom 33,670,209 38,945,224 13.5
Total Investments in Western Europe 85,705,840 104,547,987 36.3
SHORT-TERM Face
SECURITIES Amount Issue
Commercial Paper* $10,000,000 Concord Minutemen Capital Co. LLC,
5.05% due 12/01/1998 10,000,000 10,000,000 3.5
3,673,000 General Motors Acceptance Corp.,
5.50% due 12/01/1998 3,673,000 3,673,000 1.3
9,250,000 International Securitization Corp.,
5.20% due 12/10/1998 9,237,975 9,237,975 3.2
Total Investments in Short-Term
Securities 22,910,975 22,910,975 8.0
Total Investments $210,220,275 288,081,054 100.2
============
Liabilities in Excess of Other Assets (517,886) (0.2)
------------ ------
Net Assets $287,563,168 100.0%
============ ======
<FN>
*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.
++Non-income producing security.
(a)The rights may be exercised until 12/07/1998.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of November 30, 1998
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$210,220,275) (Note 1a) $288,081,054
Cash 2,281
Receivables:
Dividends $ 381,496
Capital shares sold 273,928 655,424
------------
Prepaid registration fees and other assets (Note 1f) 22,688
------------
Total assets 288,761,447
------------
Liabilities: Payables:
Capital shares redeemed 648,984
Investment adviser (Note 2) 243,447
Distributor (Note 2) 22,923 915,354
------------
Accrued expenses and other liabilities 282,925
------------
Total liabilities 1,198,279
------------
Net Assets: Net assets $287,563,168
============
Net Assets Class A Shares of Common Stock, $0.10 par value, 100,000,000
Consist of: shares authorized $ 1,727,397
Class B Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 173,139
Class C Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 7,642
Class D Shares of Common Stock, $0.10 par value, 100,000,000
shares authorized 53,819
Paid-in capital in excess of par 166,805,406
Accumulated investment loss--net (595,357)
Undistributed realized capital gains on investments and foreign
currency transactions--net 41,514,938
Unrealized appreciation on investments and foreign currency
transactions--net 77,876,184
------------
Net assets $287,563,168
============
Net Asset Class A--Based on net assets of $254,471,772 and 17,273,971
Value: shares outstanding $ 14.73
============
Class B--Based on net assets of $24,148,053 and 1,731,390
shares outstanding $ 13.95
============
Class C--Based on net assets of $1,060,843 and 76,423
shares outstanding $ 13.88
============
Class D--Based on net assets of $7,882,500 and 538,192
shares outstanding $ 14.65
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1998
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended November 30, 1998
<S> <S> <C> <C>
Investment Income Dividends (net of $341,392 foreign withholding tax) $ 3,436,462
(Notes 1d & 1e): Interest and discount earned 1,399,571
------------
Total income 4,836,033
------------
Expenses: Investment advisory fees (Note 2) $ 3,732,027
Transfer agent fees--Class A (Note 2) 723,145
Account maintenance and distribution fees--Class B (Note 2) 489,274
Custodian fees 226,228
Transfer agent fees--Class B (Note 2) 132,000
Printing and shareholder reports 99,862
Professional fees 84,417
Accounting services (Note 2) 69,928
Registration fees (Note 1f) 65,333
Account maintenance and distribution fees--Class C (Note 2) 41,806
Directors' fees and expenses 37,890
Account maintenance fees--Class D (Note 2) 21,653
Transfer agent fees--Class D (Note 2) 19,845
Pricing fees 14,087
Transfer agent fees--Class C (Note 2) 11,995
Other 12,326
------------
Total expenses 5,781,816
------------
Investment loss--net (945,783)
------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 41,762,356
(Loss) on Foreign currency transactions--net (406,432) 41,355,924
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net Investments--net 4,041,898
(Notes 1b, 1c, Foreign currency transactions--net 77,368 4,119,266
1e & 3): ------------ ------------
Net realized and unrealized gain on investments and foreign
currency transactions 45,475,190
------------
Net Increase in Net Assets Resulting from Operations $ 44,529,407
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended
November 30,
Increase (Decrease) in Net Assets: 1998 1997
<S> <S> <C> <C>
Operations: Investment loss--net $ (945,783) $ (1,351,232)
Realized gain on investments and foreign currency transactions
--net 41,355,924 50,941,976
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 4,119,266 (17,243,096)
------------ ------------
Net increase in net assets resulting from operations 44,529,407 32,347,648
------------ ------------
Dividends & Investment income--net:
Distributions to Class A -- (472,191)
Shareholders Class C -- (24)
(Note 1g): Class D -- (3,962)
In excess of investment income--net:
Class A -- (2,756,330)
Class C -- (141)
Class D -- (23,124)
Realized gain on investments--net:
Class A (39,878,951) (20,709,718)
Class B (7,314,996) (2,278,771)
Class C (664,387) (49,977)
Class D (999,340) (245,755)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (48,857,674) (26,539,993)
------------ ------------
Capital Share Net decrease in net assets derived from capital share
Transactions transactions (134,289,599) (27,845,951)
(Note 4): ------------ ------------
Net Assets: Total decrease in net assets (138,617,866) (22,038,296)
Beginning of year 426,181,034 448,219,330
------------ ------------
End of year $287,563,168 $426,181,034
============ ============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1998
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have
been derived from information provided in Class A++
the financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 15.05 $ 15.12 $ 13.87 $ 12.82 $ 13.07
Operating -------- -------- -------- -------- --------
Performance: Investment income (loss)--net (.02) (.02) .13 .05 .03
Realized and unrealized gain on investments
and foreign currency transactions--net 1.46 .86 1.87 1.52 .53
-------- -------- -------- -------- --------
Total from investment operations 1.44 .84 2.00 1.57 .56
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- (.02) -- (.01) (.01)
In excess of investment income--net -- (.10) -- -- --
Realized gain on investments--net (1.76) (.79) (.75) (.51) (.80)
-------- -------- -------- -------- --------
Total dividends and distributions (1.76) (.91) (.75) (.52) (.81)
-------- -------- -------- -------- --------
Net asset value, end of year $ 14.73 $ 15.05 $ 15.12 $ 13.87 $ 12.82
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 11.41% 6.04% 15.20% 12.92% 4.39%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses 1.39% 1.39% 1.37% 1.51% 1.44%
Net Assets: ======== ======== ======== ======== ========
Investment income (loss)--net (.11%) (.12%) .92% .41% .23%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $254,472 $344,940 $398,310 $327,270 $330,132
Data: ======== ======== ======== ======== ========
Portfolio turnover 35.59% 54.50% 41.14% 44.64% 40.18%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
The following per share data and ratios have
been derived from information provided in Class B++
the financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 14.31 $ 14.40 $ 13.38 $ 12.50 $ 12.74
Operating -------- -------- -------- -------- --------
Performance: Investment loss--net (.15) (.17) (.02) (.08) (.10)
Realized and unrealized gain on investments
and foreign currency transactions--net 1.39 .84 1.79 1.47 .52
-------- -------- -------- -------- --------
Total from investment operations 1.24 .67 1.77 1.39 .42
-------- -------- -------- -------- --------
Less distributions from realized gain on
investments--net (1.60) (.76) (.75) (.51) (.66)
-------- -------- -------- -------- --------
Net asset value, end of year $ 13.95 $ 14.31 $ 14.40 $ 13.38 $ 12.50
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 10.32% 4.98% 13.97% 11.78% 3.32%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses 2.44% 2.42% 2.40% 2.55% 2.48%
Net Assets: ======== ======== ======== ======== ========
Investment loss--net (1.10%) (1.11%) (.11%) (.63%) (.80%)
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 24,148 $ 66,791 $ 44,311 $ 44,387 $ 49,647
Data: ======== ======== ======== ======== ========
Portfolio turnover 35.59% 54.50% 41.14% 44.64% 40.18%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1998
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class C++++
For the
The following per share data and ratios have Period
been derived from information provided in Oct. 21,
the financial statements. 1994++ to
For the Year Ended November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.28 $ 14.41 $ 13.38 $ 12.51 $ 13.08
Operating -------- -------- -------- -------- --------
Performance: Investment loss--net (.16) (.17) (.01) (.08) (.02)
Realized and unrealized gain (loss) on invest-
ments and foreign currency transactions--net 1.39 .83 1.79 1.46 (.55)
-------- -------- -------- -------- --------
Total from investment operations 1.23 .66 1.78 1.38 (.57)
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- --** -- -- --
In excess of investment income--net -- --** -- -- --
Realized gain on investments--net (1.63) (.79) (.75) (.51) --
-------- -------- -------- -------- --------
Total dividends and distributions (1.63) (.79) (.75) (.51) --
-------- -------- -------- -------- --------
Net asset value, end of period $ 13.88 $ 14.28 $ 14.41 $ 13.38 $ 12.51
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 10.21% 4.96% 14.05% 11.69% (4.36%)+++
Return:*** ======== ======== ======== ======== ========
Ratios to Average Expenses 2.46% 2.43% 2.41% 2.55% 3.00%*
Net Assets: ======== ======== ======== ======== ========
Investment loss--net (1.08%) (1.09%) (.09%) (.63%) (1.31%)*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 1,061 $ 5,964 $ 910 $ 376 $ 177
Data: ======== ======== ======== ======== ========
Portfolio turnover 35.59% 54.50% 41.14% 44.64% 40.18%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Amount is less than $.01 per share.
***Total investment returns exclude the effects of sales loads.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class D++++
For the
The following per share data and ratios have Period
been derived from information provided in Oct. 21,
the financial statements. 1994++ to
For the Year Ended November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.97 $ 15.04 $ 13.84 $ 12.81 $ 13.39
Operating -------- -------- -------- -------- --------
Performance: Investment income (loss)--net (.05) (.06) .09 .02 (.01)
Realized and unrealized gain (loss) on
investments and foreign currency trans-
actions--net 1.46 .87 1.86 1.52 (.57)
-------- -------- -------- -------- --------
Total from investment operations 1.41 .81 1.95 1.54 (.58)
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- (.01) -- --** --
In excess of investment income--net -- (.08) -- -- --
Realized gain on investments--net (1.73) (.79) (.75) (.51) --
-------- -------- -------- -------- --------
Total dividends and distributions (1.73) (.88) (.75) (.51) --
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.65 $ 14.97 $ 15.04 $ 13.84 $ 12.81
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 11.19% 5.80% 14.86% 12.73% (4.33%)+++
Return:*** ======== ======== ======== ======== ========
Ratios to Average Expenses 1.64% 1.64% 1.63% 1.76% 2.23%*
Net Assets: ======== ======== ======== ======== ========
Investment income (loss)--net (.38%) (.39%) .60% .18% (.67%)*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 7,882 $ 8,486 $ 4,688 $ 3,459 $ 1,591
Data: ======== ======== ======== ======== ========
Portfolio turnover 35.59% 54.50% 41.14% 44.64% 40.18%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Amount is less than $.01 per share.
***Total investment returns exclude the effects of sales loads.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1998
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Holdings, Inc. (the "Company") is registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Company's financial statements
are prepared in accordance with generally accepted accounting
principles which may require the use of management accruals and
estimates. The Company offers four classes of shares under the
Merrill Lynch Select Pricing SM System. Shares of Class A and Class D
are sold with a front-end sales charge. Shares of Class B and Class
C may be subject to a contingent deferred sales charge. All classes
of shares have identical voting, dividend, liquidation and other
rights and the same terms and conditions, except that Class B, Class
C and Class D Shares bear certain expenses related to the account
maintenance of such shares, and Class B and Class C Shares also bear
certain expenses related to the distribution of such shares. Each
class has exclusive voting rights with respect to matters relating
to its account maintenance and distribution expenditures. The
following is a summary of significant accounting policies followed
by the Company.
(a) Valuation of securities--Portfolio securities which 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 which 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 value
quotations are not available are valued at their fair value as
determined in good faith by or under the direction of the Company'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 Company may engage in
various portfolio strategies to seek to increase its return by
hedging its portfolio against adverse movements in the equity, debt
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 Company is authorized to write covered call options
and purchase put options. When the Company writes an option, an
amount equal to the premium received by the Company 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 Company enters into a closing transaction), the
Company 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 Company 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 Company's records. However, the effect on
operations is recorded from the date the Company enters into such
contracts. Premium or discount is amortized over the life of the
contracts.
* Foreign currency options and futures--The Company 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 Company, sold by the Company but not yet
delivered, or committed or anticipated to be purchased by the
Company.
* Financial futures contracts--The Company may purchase or sell
financial futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the
Company deposits and maintains as collateral such initial margin as
required by the exchange on which the transaction is effected.
Pursuant to the contract, the Company 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 Company as unrealized gains
or losses. When the contract is closed, the Company 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 Company'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
Company has determined the ex-dividend date. Interest income is
recognized on the accrual basis. Realized gains and losses on
security transactions are determined on the identified cost basis.
(f) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by
the Company are recorded on the ex-dividend dates. Distributions in
excess of net investment income are due primarily to differing tax
treatments for post-October losses.
(h) Reclassification--Generally accepted accounting principles
require that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting.
Accordingly, current year's permanent book/tax differences of
$175,950 have been reclassified between accumulated net investment
loss and undistributed net realized capital gains and $1,858,763 has
been reclassified between paid-in capital in excess of par and
accumulated net investment loss. These reclassifications have no
effect on net assets or net asset values per share.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Company 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 Company has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or "Distributor"), a division of Princeton Funds
Distributor, Inc. ("PFD"), which is a wholly-owned subsidiary of
Merrill Lynch Group, Inc.
As compensation for its services to the Company, MLAM receives
monthly compensation at the annual rate of 1.0% of the average daily
net assets of the Company.
Pursuant to the Distribution Plans adopted by the Company in
accordance with Rule 12b-1 under the Investment Company Act of 1940,
the Company pays the Distributor ongoing account maintenance and
distribution fees. The fees are accrued daily and paid monthly at
annual rates based upon the average daily net assets of the shares
as follows:
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
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 Company. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the year ended November 30, 1998, MLFD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Company's Class A and Class D Shares as
follows:
MLFD MLPF&S
Class A $471 $6,598
Class D $126 $1,169
For the year ended November 30, 1998, MLPF&S received contingent
deferred sales charges of $87,871 and $522 relating to transactions
in Class B and Class C Shares, respectively.
Merrill Lynch Global Holdings, Inc., November 30, 1998
NOTES TO FINANCIAL STATEMENTS (concluded)
In addition, MLPF&S received $60,494 in commissions on the execution
of portfolio security transactions for the Company for the year
ended November 30, 1998.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., acts as the Company's transfer agent.
Accounting services are provided to the Company by MLAM at cost.
Certain officers and/or directors of the Company 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 year ended November 30, 1998 were $124,427,669 and
$311,803,707, respectively.
Net realized gains (losses) for the year ended November 30, 1998,
and net unrealized gains as of November 30, 1998 were as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $ 41,764,791 $ 77,860,779
Short-term investments (2,435) --
Foreign currency transactions (406,432) 15,405
------------ ------------
Total $ 41,355,924 $ 77,876,184
============ ============
As of November 30, 1998, net unrealized appreciation for Federal
income tax purposes aggregated $77,860,779, of which $83,515,773
related to appreciated securities and $5,654,994 related to
depreciated securities. The aggregate cost of investments at
November 30, 1998 for Federal income tax purposes was $210,220,275.
4. Capital Share Transactions:
A net decrease in net assets derived from capital share transactions
was $134,289,599 and $27,845,951 for the years ended November 30,
1998 and November 30, 1997, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended November 30, 1998 Shares Amount
Shares sold 3,466,422 $ 49,455,030
Shares issued to shareholders in
reinvestment of dividends and
distributions 2,864,459 36,521,854
------------- -------------
Total issued 6,330,881 85,976,884
Shares redeemed (11,977,403) (172,486,086)
------------- -------------
Net decrease (5,646,522) $ (86,509,202)
============= =============
Class A Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 10,593,236 $ 157,598,934
Shares issued to shareholders in
reinvestment of dividends and
distributions 1,586,229 22,175,485
------------- -------------
Total issued 12,179,465 179,774,419
Shares redeemed (15,605,732) (236,649,109)
------------- -------------
Net decrease (3,426,267) $ (56,874,690)
============= =============
Class B Shares for the Year Dollar
Ended November 30, 1998 Shares Amount
Shares sold 552,814 $ 7,259,632
Shares issued to shareholders in
reinvestment of distributions 528,258 6,439,464
------------- -------------
Total issued 1,081,072 13,699,096
Automatic conversion of shares (418,255) (5,671,168)
Shares redeemed (3,598,708) (50,212,204)
------------- -------------
Net decrease (2,935,891) $ (42,184,276)
============= =============
Class B Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 4,144,750 $ 57,686,337
Shares issued to shareholders in
reinvestment of distributions 148,413 1,993,180
------------- -------------
Total issued 4,293,163 59,679,517
Automatic conversion of shares (126,229) (1,871,700)
Shares redeemed (2,575,781) (37,239,859)
------------- -------------
Net increase 1,591,153 $ 20,567,958
============= =============
Class C Shares for the Year Dollar
Ended November 30, 1998 Shares Amount
Shares sold 227,450 $ 3,067,011
Shares issued to shareholders in
reinvestment of dividends and
distributions 50,102 608,239
------------- -------------
Total issued 277,552 3,675,250
Shares redeemed (618,894) (8,634,328)
------------- -------------
Net decrease (341,342) $ (4,959,078)
============= =============
Class C Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 590,713 $ 8,199,909
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,548 47,542
------------- -------------
Total issued 594,261 8,247,451
Shares redeemed (239,693) (3,447,217)
------------- -------------
Net increase 354,568 $ 4,800,234
============= =============
Class D Shares for the Year Dollar
Ended November 30, 1998 Shares Amount
Shares sold 177,031 $ 2,437,960
Shares issued to shareholders in
reinvestment of dividends and
distributions 72,194 917,589
Automatic conversion of shares 399,858 5,671,168
------------- -------------
Total issued 649,083 9,026,717
Shares redeemed (677,661) (9,663,760)
------------- -------------
Net decrease (28,578) $ (637,043)
============= =============
Class D Shares for the Year Dollar
Ended November 30, 1997 Shares Amount
Shares sold 898,998 $ 13,541,614
Shares issued to shareholders in
reinvestment of dividends and
distributions 18,140 252,873
Automatic conversion of shares 120,997 1,871,700
------------- -------------
Total issued 1,038,135 15,666,187
Shares redeemed (783,014) (12,005,640)
------------- -------------
Net increase 255,121 $ 3,660,547
============= =============
5. Subsequent Event:
On December 1, 1998, the Company's Board of Directors declared a
long-term capital gains distribution in the amount of $2.212478 per
share for each of the four classes, payable on December 21, 1998 to
shareholders of record as of December 18, 1998.
Merrill Lynch Global Holdings, Inc., November 30, 1998
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Merrill Lynch Global Holdings, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Global Holdings, Inc. as of November 30, 1998, the related
statements of operations for the year then ended and changes in net
assets for each of the years in the two-year period then ended, and
the financial highlights for each of the years in the five-year
period then ended. These financial statements and the financial
highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. 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.
Our procedures included confirmation of securities owned at November
30, 1998 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 audits provide
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
Merrill Lynch Global Holdings, Inc. as of November 30, 1998, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
January 14, 1999
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
The following information summarizes all per share distributions
paid by Merrill Lynch Global Holdings, Inc. (the "Company") during
its taxable year ended November 30, 1998:
<TABLE>
<CAPTION>
Non-Qualifying Foreign
Domestic Foreign Total Taxes Long-Term
Record Payable Ordinary Source Ordinary Paid or Capital
Date Date Income Income Income Withheld Gains*
<S> <C> <C> <C> <C> <C> <C> <C>
Class A Shares 12/19/97 12/30/97 $.212267 $.061958 $.274225 $.023080 $1.489670
Class B Shares 12/19/97 12/30/97 $.089019 $.025984 $.115003 $.023080 $1.489670
Class C Shares 12/19/97 12/30/97 $.104908 $.030621 $.135529 $.023080 $1.489670
Class D Shares 12/19/97 12/30/97 $.187196 $.054640 $.241836 $.023080 $1.489670
<FN>
*Of this distribution, 44.60% is subject to the 28% tax rate and
55.40 is subject to the 20% tax rate.
</TABLE>
All of the foreign taxes paid or withheld represent taxes incurred
by the Company on dividends received by the Company from foreign
sources. Foreign taxes paid or withheld should be included in
taxable income with an offsetting deduction from gross income or as
a credit for taxes paid to foreign governments. You should consult
your tax adviser regarding the appropriate treatment of foreign
taxes paid.
Please retain this information for your records.
PORTFOLIO CHANGES (UNAUDITED)
For the Quarter Ended November 30, 1998
Additions
BankAmerica Corporation
CBS Corporation
Chancellor Media Corporation
Clear Channel Communications, Inc.
Embratel Participacoes S.A. (Preferred)
Sprint Corporation (PCS Group)
*Tele Celular Sul Participacoes S.A.
Tele Centro Oeste Celular Participacoes S.A. (Preferred)
Tele Centro Sul Participacoes S.A. (Preferred)
Tele Leste Celular Participacoes S.A. (Preferred)
Tele Nordeste Celular Participacoes S.A. (Preferred)
Tele Norte Celular Participacoes S.A. (Preferred)
*Tele Norte Leste Participacoes S.A.
Tele Sudeste Celular Participacoes S.A. (Preferred)
*Telemig Celular Participacoes S.A.
Telesp Celular Participacoes S.A.
(Preferred)
Telesp Participacoes S.A. (Preferred)
Deletions
Alcatel Alsthom Cie Generale d'Electricite S.A.
Astec (BSR) PLC
Banco de Galicia y Buenos Aires S.A. (ADR)
Banco Latinoamericano de Exportaciones, S.A. (E Shares)
Berkeley Group PLC (The)
City Development Ltd.
DESC, Sociedad de Fomento Industrial, S.A. de C.V. (ADR)
Grupo Financiero Banorte, S.A. de C.V. (Class B)
Marui Co., Ltd.
Mitsubishi Heavy Industries Ltd.
Munters AB
NEC Corporation
NationsBank Corporation
Overseas Chinese Banking Corp.
Singapore Press Holdings Limited
*Tele Celular Sul Participacoes S.A.
*Tele Norte Leste Participacoes S.A.
*Telemig Celular Participacoes S.A.
Tokio Marine & Fire Insurance Co., Ltd.
Tokyo Broadcasting System, Inc.
Tokyo Electron Ltd.
US Filter Corp.
[FN]
*Added and deleted in the same quarter.
