SEMI-ANNUAL REPORT
MAY 31, 2000
Mercury
Global
Holdings,
Inc.
MERCURY GLOBAL HOLDINGS, INC.
WORLDWIDE INVESTMENTS AS OF MAY 31, 2000
Ten Largest Percent of
Equity Holdings Net Assets
Vodafone AirTouch PLC 5.3%
Nokia Oyj 4.7
Cisco Systems, Inc. 4.4
Texas Instruments Incorporated 4.0
Nortel Networks Corporation 4.0
COLT Telecom Group PLC 3.7
NTT Mobile Communications
Network, Inc. 3.6
STMicroelectronics NV 3.5
Siemens AG 3.3
Sun Microsystems, Inc. 3.0
Ten Largest Percent of
Industries Net Assets
Communications Equipment 17.4%
Electronics 13.4
Wireline Communication 13.4
Wireless Communication 9.5
Computers 5.5
Energy 4.6
Semiconductors 3.8
Information Processing 3.4
Pharmaceuticals 3.0
Retail Stores 2.7
OFFICERS AND DIRECTORS
Terrry K. Glenn, President and Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Robert C. Doll, Jr., Senior Vice President
Lawrence R. Fuller, Senior Vice
President and Portfolio Manager
Donald C. Burke, Vice President and
Treasurer
Robert Harris, 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
(888) 763-2260
May 31, 2000 2 Mercury Global Holdings, Inc.
DEAR SHAREHOLDER
On April 3, 2000, Merrill Lynch Global Holdings, Inc. was rebranded
and is now distributed as Mercury Global Holdings, Inc. The change
in the Fund's brand does not imply a change in its investment
objective, which remains the same: to seek high total investment
return through worldwide investment in an internationally
diversified portfolio of securities. Merrill Lynch Global Holdings,
Inc.'s Class A, Class B, Class C and Class D Shares have become
Mercury Global Holdings, Inc.'s Class I, Class B, Class C and Class
A Shares, respectively.
Portfolio Matters
For the six months ended May 31, 2000, Mercury Global Holdings,
Inc.'s Class I, Class A, Class B and Class C Shares had total
returns of +6.58%, +6.43%, +6.01% and +5.98%, respectively. The
Fund's total returns were well ahead of the unmanaged Morgan Stanley
Capital International World Stock Index (in US dollars with net
dividends reinvested) and the actively managed return of the Lipper
Analytical Services, Inc.'s Global Funds Average, which had returns
of +1.90% and +5.59%, respectively, for the same six-month period.
(Fund results shown do not reflect sales charges and would be lower
if sales charges were included.) The positive absolute and relative
investment performance during the six-month period ended May 31,
2000 was the result of our change in industry focus toward
communication systems technology, which took place in July 1999.
Since then, we have continued to emphasize equity investments in
leading corporations providing communication components and systems
for the current expansion of the Internet to both wireline and
cellular communication service providers. The Fund's major equity
investments among companies providing the communication
infrastructure and components included Cisco Systems, Inc.,
Nokia Oyj, Nortel Networks Corporation, Texas Instruments
Incorporated and STMicroelectronics NV. Another significant industry
represented in the Fund and involved in deploying the new broadband
digital communication systems is communication service providers.
Fund holdings in this area included Vodafone AirTouch PLC, NTT
Mobile Communications Network, Inc. and COLT Telecom Group PLC.
Major worldwide stock market declines occurred in the months of
April and May 2000, with the largest stock price declines generally
taking place in the common shares of technology and communication
service companies. This had a significant negative effect on the
absolute and relative returns of the Fund's shares. However, the
substantial investment outperformance during the first four months
of the period resulted in overall investment gains for the Fund
during the six-month period ended May 31, 2000.
May 31, 2000 3 Mercury Global Holdings, Inc.
Market Outlook
We believe that there is emerging evidence of a slowdown in the rate
of real growth of US consumer durable goods spending on motor
vehicles, residential housing and related appliances. If a reduced
rate of real growth in consumer spending is happening, we believe it
is likely that the US Federal Reserve Board will stop raising the
Federal Funds target rate and restricting the rate of growth of the
money supply. Such a change in monetary policy could favorably
impact the US market overall. The majority of the technology and
communication service companies in the Fund have reported first
calendar quarter results, which we believe are excellent operating
results for the year-to-date 2000. Also, it appears that the
business outlook, as expressed by senior managements of the leading
companies worldwide in the communications equipment industry, is for
a continued rapid rise in capital investment on a global basis in
Internet infrastructure. Also, this outlook is reflected in the
substantial growth of backlogs thus far in the year 2000 for the
component as well as systems companies. Consequently, we have not
significantly shifted the investment strategy of the Fund.
In Conclusion
During the six-month period ended May 31, 2000, we pursued our
investment strategy of focusing on technology companies in
communications equipment and components. In our opinion, a major
capital spending uptrend is expected to continue by the major
communication service companies around the world, and we will
continue to look for investment opportunities that are appropriate
for the Fund.
We thank you for your continued investment in Mercury Global
Holdings, Inc., and we look forward to discussing our outlook and
strategies in our upcoming annual report to shareholders.
Sincerely,
Terry K. Glenn
President and Director
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
July 13, 2000
May 31, 2000 4 Mercury Global Holdings, Inc.
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).
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 "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. The Fund's Investment Adviser voluntarily waived a
portion of its management fee. Without such waiver, the Fund's
performance would have been lower.
May 31, 2000 5 Mercury Global Holdings, Inc.
FUND PERFORMANCE DATA
(CONTINUED)
RECENT PERFORMANCE RESULTS
Ten Years/
6 Month 12 Month Since Inception
As of May 31, 2000 Total Return Total Return Total Return
Class I*++ +6.58% +32.50% +197.99%
Class A*++++ +6.43 +32.12 +110.61
Class B* +6.01 +31.07 +168.80
Class C* +5.98 +31.11 +101.39
MSCIWorld Index** +1.90 +13.60 +198.23/+124.24
*Investment results shown do not reflect sales charges. Results
shown would be lower if sales charges were included. Total
investment returns are based on changes in the Fund's net asset
values for the periods shown, and assume reinvestment of all
dividends and capital gains at net asset value on the ex-dividend
date. The Fund's ten-year/since inception periods are ten years for
Class I and Class B Shares and from 10/21/94 for Class A and C
Shares.
**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-year/since
inception total returns are for the ten years ended 5/31/00 and from
10/31/94, respectively.
++Prior to April 3, 2000, Class I Shares were designated Class A
Shares.
++++Prior to April 3, 2000, Class A Shares were designated Class D
Shares.
May 31, 2000 6 Mercury Global Holdings, Inc.
FUND PERFORMANCE DATA (CONCLUDED)
AVERAGE ANNUAL TOTAL RETURN
% Return % Return
Without Sales With Sales
Class I Shares*++ Charge Charge**
Year Ended 3/31/00 +52.62% +44.61%
Five Years Ended
3/31/00 +21.28 +19.98
Ten Years Ended
3/31/00 +14.07 +13.46
*Maximum sales charge is 5.25%. (Prior to October 21, 1994, Class
I Shares (formerly designated Class A Shares) were offered at a
higher sales charge. Thus, actual returns would have been lower than
shown for the ten-year period.)
**Assuming maximum sales charge.
++Prior to April 3, 2000 Class I Shares were designated Class A
Shares.
% Return % Return
Without Sales With Sales
Class A Shares*++ Charge Charge**
Year Ended 3/31/00 +52.23% +44.23%
Five Years Ended
3/31/00 +20.98 +19.68
Inception (10/21/94)
through 3/31/00 +18.14 +16.97
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
++Prior to April 3, 2000 Class A Shares were designated Class D
Shares.
% Return % Return
Without With
Class B Shares* CDSC CDSC**
Year Ended 3/31/00 +51.23% +47.23%
Five Years Ended
3/31/00 +20.05 +20.05
Ten Years Ended
3/31/00 +12.92 +12.92
*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 With
Class C Shares* CDSC CDSC**
Year Ended 3/31/00 +51.05% +50.05%
Five Years Ended
3/31/00 +20.03 +20.03
Inception (10/21/94)
through 3/31/00 +17.20 +17.20
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
May 31, 2000 7 Mercury Global Holdings, Inc.
SCHEDULE OF INVESTMENTS
<TABLE>
MERCURY GLOBAL HOLDINGS, INC.
<CAPTION> In US Dollars
Shares Percent of
Industry Held Investments Value Net Assets
<S> <C> <S> <C> <C>
NORTH AMERICA
Canada
Communications 212,000 Nortel Networks Corporation $ 11,514,250 4.0%
Equipment
Wireline 100,000 ++AT&T Canada Inc. 3,887,500 1.3
Communication 150,000 ++Rogers Communications, Inc. 'B' 3,921,012 1.3
------------ ------
7,808,512 2.6
Total Investments in Canada 19,322,762 6.6
United States
Advertising 30,000 The Interpublic Group of Companies, Inc. 1,288,125 0.4
Biotechnology 5,000 ++Affymetrix, Inc. 594,062 0.2
13,000 ++Immunex Corporation 335,563 0.1
------------ ------
929,625 0.3
Broadcast-- 30,000 ++Infinity Broadcasting Corporation
Media (Class A) 948,750 0.3
Broadcasting-- 26,000 ++AMFM Inc. 1,761,500 0.6
Radio & 32,550 ++Viacom, Inc. (Class B) 2,018,100 0.7
Television 3,779,600 1.3
Communications 40,000 ++3Com Corporation 1,672,500 0.6
Equipment 225,000 ++Cisco Systems, Inc. 12,810,938 4.4
64,000 ++JDS Uniphase Corporation 5,628,000 1.9
13,000 Lucent Technologies Inc. 745,875 0.3
11,000 Motorola, Inc. 1,031,250 0.4
------------ ------
21,888,563 7.6
Computers 62,000 ++EMC Corporation 7,211,375 2.5
114,000 ++Sun Microsystems, Inc. 8,735,250 3.0
------------ ------
15,946,625 5.5
Electrical 123,000 General Electric Company 6,472,875 2.2
Equipment
Electronics 14,000 ++Broadcom Corporation (Class A) 1,820,000 0.6
50,000 ++LSI Logic Corporation 2,634,375 0.9
162,000 Texas Instruments Incorporated 11,704,500 4.0
20,000 ++Xilinx, Inc. 1,521,250 0.5
------------ ------
17,680,125 6.0
Energy 3,500 Duke Energy Corporation 203,875 0.1
55,000 El Paso Energy Corporation 2,832,500 1.0
</TABLE>
May 31, 2000
Mercury Global Holdings, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
MERCURY GLOBAL HOLDINGS, INC.
<CAPTION>
In US Dollars
Shares Percent of
Industry Held Investments Value Net Assets
<S> <C> <S> <C> <C>
NORTH AMERICA (concluded)
United States (concluded)
Energy 80,000 Enron Corp. $ 5,830,000 2.0%
(concluded) 6,700 UtiliCorp United Inc. 131,488 0.0
------------ ------
8,997,863 3.1
Entertainment 38,000 The Walt Disney Company 1,603,125 0.6
Financial Services 5,013 T. Rowe Price Associates, Inc. 191,434 0.1
Information 84,000 ++America Online, Inc. 4,452,000 1.5
Processing 15,000 ++At Home Corporation (Class A) 276,562 0.1
13,000 ++Palm, Inc. 298,188 0.1
------------ ------
5,026,750 1.7
Oil Services 40,000 Baker Hughes Incorporated 1,450,000 0.5
15,000 Halliburton Company 765,000 0.3
20,000 Schlumberger Limited 1,471,250 0.5
3,686,250 1.3
Pharmaceuticals 29,000 Merck & Co., Inc. 2,164,125 0.7
50,000 Pfizer Inc. 2,228,125 0.8
------------ ------
4,392,250 1.5
Restaurants 25,000 McDonald's Corporation 895,313 0.3
Retail 27,000 ++Amazon.com, Inc. 1,304,437 0.5
40,000 ++eBay Inc. 2,502,500 0.9
------------ ------
3,806,937 1.4
Retail Specialty 16,000 ++Staples, Inc. 234,000 0.1
Semiconductors 80,000 ++Applied Materials, Inc. 6,680,000 2.3
Software-- 20,000 ++Commerce One, Inc. 715,000 0.2
Computer 13,000 ++Rational Software Corporation 953,063 0.3
------------ ------
1,668,063 0.5
Wireless 10,000 ++Sprint Corp. (PCS Group) 555,000 0.2
Communication
Wireline 16,000 AT&T Corp. 555,000 0.2
Communication 6,800 ++Infonet Services Corporation (Class B) 78,200 0.0
110,000 ++NorthPoint Communications Group, Inc. 1,698,125 0.6
30,000 ++WorldCom, Inc. 1,126,875 0.4
------------ ------
3,458,200 1.2
Total Investments in the United States 110,129,473 37.9
Total Investments in North America
(Cost--$86,278,481) 129,452,235 44.5
</TABLE>
May 31, 2000 9 Mercury Global Holdings, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
MERCURY GLOBAL HOLDINGS, INC.
<CAPTION>
In US Dollars
Shares Percent of
Industry Held Investments Value Net Assets
<S> <C> <S> <C> <C>
PACIFIC BASIN/ASIA
Australia
Broadcasting 100,000 The News Corporation Limited $ 1,130,103 0.4%
& Publishing
Wireless 400,000 ++Cable & Wireless Optus Limited 1,093,078 0.4
Communication
Total Investments in Australia 2,223,181 0.8
China
Information 54,000 ++China.Com Corporation 'A' 1,285,875 0.4
Processing
Total Investments in China 1,285,875 0.4
Japan
Automobile 75,000 Toyota Motor Corporation 3,406,083 1.2
Leisure 44,000 Sony Corporation 3,984,212 1.4
Office Equipment 100,000 Canon, Inc. 4,606,455 1.6
Retail Stores 105,000 Ito-Yokado Co., Ltd. 6,231,251 2.0
Semiconductors 6,000 Tokyo Electron Limited 819,132 0.3
Transportation 1,000 East Japan Railway Company 5,702,345 2.0
Wireless 405 NTT Mobile Communications
Communication Network, Inc. 10,456,466 3.6
Wireline 535 Nippon Telegraph & Telephone
Communication Corporation (NTT) 6,359,879 2.2
Total Investments in Japan 41,565,823 14.3
Total Investments in the Pacific
Basin/Asia (Cost--$39,703,073) 45,074,879 15.5
WESTERN EUROPE
Denmark
Wireline 34,000 Tele Danmark A/S 2,386,187 0.8
Communication
Total Investments in Denmark 2,386,187 0.8
</TABLE>
May 31, 2000 10 Mercury Global Holdings, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
MERCURY GLOBAL HOLDINGS, INC.
<CAPTION>
In US Dollars
Shares Percent of
Industry Held Investments Value Net Assets
<S> <C> <S> <C> <C>
WESTERN EUROPE (continued)
Finland
Communications 264,000 Nokia Oyj $ 13,661,715 4.7%
Equipment
Total Investments in Finland 13,661,715 4.7
France
Banking & 16,000 Credit Lyonnais 683,160 0.2
Financial
Broadcasting-- 5,000 Societe Television Francaise 1 3,199,530 1.1
Radio &
Television
Entertainment 15,000 Vivendi 1,599,765 0.6
Electronics 169,500 STMicroelectronics NV 10,044,716 3.5
Food 3,000 ++Groupe Danone 698,610 0.2
Information 3,000 Cap Gemini SA 558,944 0.2
Processing
Insurance 5,000 Axa 732,646 0.3
Total Investments in France 17,517,371 6.1
Germany
Electronics 27,400 ++Infineon Technologies AG 1,781,294 0.6
65,000 Siemens AG 9,572,623 3.3
------------ ------
11,353,917 3.9
Insurance 3,000 Allianz AG (Registered Shares) 1,078,103 0.4
Retail Stores 67,000 Metro AG 2,174,753 0.7
Software-- 1,900 ++Brokat Infosystems AG 211,447 0.1
Computer
Total Investments in Germany 14,818,220 5.1
Italy
Banking & 215,000 Banca di Roma SpA 231,094 0.1
Financial
Insurance 450,000 Istituto Nazionale delle Assicurazioni
(INA) SpA 995,332 0.3
Total Investments in Italy 1,226,426 0.4
</TABLE>
May 31, 2000 11 Mercury Global Holdings, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
MERCURY GLOBAL HOLDINGS, INC.
<CAPTION>
In US Dollars
Shares Percent of
Industry Held Investments Value Net Assets
<S> <C> <S> <C> <C>
WESTERN EUROPE (continued)
Netherlands
Chemicals 29,000 Akzo Nobel NV $ 1,100,258 0.4%
44,000 DSM NV 1,428,196 0.5
------------ ------
2,528,454 0.9
Energy 34,000 Royal Dutch Petroleum Company 2,082,032 0.7
Insurance 48,000 ING Groep NV 2,853,869 1.0
Leisure 52,800 Koninklijke (Royal) Philips Electronics NV 2,343,547 0.8
Semiconductors 99,000 ++ASM Lithography Holding NV 3,622,925 1.2
Wireline 52,200 Equant 2,268,506 0.8
Communication
Total Investments in the Netherlands 15,699,333 5.4
Portugal
Wireline 181,500 Portugal Telecom SA (Registered Shares) 1,969,380 0.7
Communication
Total Investments in Portugal 1,969,380 0.7
Spain
Banking & 100,000 Banco Santander Central Hispano, SA 974,697 0.3
Financial
Information 100,000 Telefonica Publicidad e Informacion, SA 3,027,961 1.1
Processing
Total Investments in Spain 4,002,658 1.4
Sweden
Communications 160,000 Telefonaktiebolaget LM Ericsson AB 'B' 3,239,765 1.1
Equipment
Total Investments in Sweden 3,239,765 1.1
Switzerland
Food 600 Nestle SA (Registered Shares) 1,139,823 0.4
Pharmaceuticals 1,000 Novartis AG (Registered Shares) 1,469,027 0.5
Total Investments in Switzerland 2,608,850 0.9
</TABLE>
May 31, 2000 12 Mercury Global Holdings, Inc.
SCHEDULE OF INVESTMENTS (CONCLUDED)
<TABLE>
MERCURY GLOBAL HOLDINGS, INC.
<CAPTION>
In US Dollars
Shares Percent of
Industry Held Investments Value Net Assets
<S> <C> <S> <C> <C>
WESTERN EUROPE (concluded)
United Kingdom
Energy 270,000 BP Amoco PLC $ 2,455,717 0.8%
Pharmaceuticals 15,000 AstraZeneca Group PLC 631,810 0.2
40,000 Glaxo Wellcome PLC 1,129,993 0.4
88,000 SmithKline Beecham PLC 1,123,297 0.4
------------- ------
2,885,100 1.0
Publishing 40,000 EMAP PLC 689,356 0.2
Wireless 3,370,831 Vodafone AirTouch PLC 15,367,062 5.3
Communication
Wireline 300,000 ++COLT Telecom Group PLC 10,577,992 3.7
Communication 110,000 ++Energis PLC 4,176,192 1.4
------------- ------
14,754,184 5.1
Total Investments in the
United Kingdom 36,151,419 12.4
Total Investments in Western Europe
(Cost--$75,332,399) 113,281,324 39.0
Face
Amount Short-Term Securities
Commercial $3,285,000 General Motors Acceptance Corp.,
Paper* 6.81% due 6/01/2000 3,285,000 1.1
Total Investments in Short-Term
Securities (Cost--$3,285,000) 3,285,000 1.1
Total Investments
(Cost--$204,598,953) 291,093,438 100.1
Liabilities in Excess of Other Assets (224,792) (0.1)
------------ ------
Net Assets $290,868,646 100.0%
============ ======
*Commercial Paper is traded on a discount basis; the interest rate
shown reflects the discount rate paid at the time of purchase by the
Fund.
++Non-income producing security.
See Notes to Financial Statements.
</TABLE>
May 31, 2000 13 Mercury Global Holdings, Inc.
<TABLE>
STATEMENT OF ASSETS AND
LIABILITIES
<CAPTION>
As of May 31, 2000
MERCURY GLOBAL HOLDINGS, INC.
<S> <C> <C>
Assets:
Investments, at value (identified cost--$204,598,953) $291,093,438
Cash 40,700
Foreign cash 1,182,233
Receivables:
Securities sold $ 2,175,967
Capital shares sold 312,681
Dividends 181,675 2,670,323
------------
Prepaid registration fees and other assets 56,371
------------
Total assets 295,043,065
------------
Liabilities:
Payables:
Securities purchased 2,487,250
Capital shares redeemed 1,313,610
Investment adviser 156,371
Distributor 20,013 3,977,244
------------
Accrued expenses and other liabilities 197,175
Total liabilities 4,174,419
------------
Net Assets:
Net assets $290,868,646
============
Net Assets Consist of:
Class I Shares of Common Stock, $.10 par value,
100,000,000 shares authorized $ 1,898,785
Class A Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 92,451
Class B Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 135,342
Class C Shares of Common Stock, $.10 par value,
100,000,000 shares authorized 12,316
Paid-in capital in excess of par 188,158,741
Accumulated investment loss--net (1,112,596)
Undistributed realized capital gains on investments and
foreign currency transactions--net 15,216,647
Unrealized appreciation on investments and foreign currency
transactions--net 86,466,960
------------
Net assets $290,868,646
============
Net Asset Value:
Class I--Based on net assets of $259,948,078 and
18,987,848 shares outstanding $ 13.69
============
Class A--Based on net assets of $12,517,716 and
924,505 shares outstanding $ 13.54
============
Class B--Based on net assets of $16,881,508 and
1,353,420 shares outstanding $ 12.47
============
Class C--Based on net assets of $1,521,344 and
123,164 shares outstanding $ 12.35
============
See Notes to Financial Statements.
</TABLE>
May 31, 2000 14 Mercury Global Holdings, Inc.
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended May 31, 2000
MERCURY GLOBAL HOLDINGS, INC.
<S> <C> <C>
Investment Income:
Dividends (net of $86,336 foreign withholding tax) $ 749,046
Interest and discount earned 193,522
------------
Total income 942,568
------------
Expenses:
Investment advisory fees $ 1,611,726
Transfer agent fees--Class I 159,234
Account maintenance and distribution fees--Class B 104,926
Custodian fees 68,936
Printing and shareholder reports 49,026
Professional fees 48,343
Accounting services 35,079
Registration fees 26,647
Directors' fees and expenses 19,541
Account maintenance fees--Class A 16,320
Transfer agent fees--Class B 13,672
Account maintenance and distribution fees--Class C 7,730
Transfer agent fees--Class A 7,227
Pricing fees 2,457
Transfer agent fees--Class C 1,058
Other 5,768
------------
Total expenses before reimbursement 2,177,690
Reimbursement of expenses (402,862)
------------
Total expenses after reimbursement 1,774,828
------------
Investment loss--net (832,260)
------------
Realized & Unrealized Gain (Loss) on Investments
& Foreign Currency Transactions--Net:
Realized gain (loss) from:
Investments--net 15,912,633
Foreign currency transactions--net (120,190) 15,792,443
------------
Change in unrealized appreciation/depreciation on:
Investments--net 4,720,890
Foreign currency transactions--net (6,153) 4,714,737
------------ ------------
Net Increase in Net Assets Resulting from Operations $ 19,674,920
============
See Notes to Financial Statements.
</TABLE>
May 31, 2000 15 Mercury Global Holdings, Inc.
<TABLE>
STATEMENTS OF CHANGES
IN NET ASSETS
<CAPTION>
MERCURY GLOBAL HOLDINGS, INC.
For the Six For the
Months Ended Year Ended
May 31, November 30,
Increase (Decrease)in Net Assets: 2000 1999
<S> <C> <C>
Operations:
Investment income (loss)--net $ (832,260) $ 926,943
Realized gain on investments and foreign currency
transactions--net 15,792,443 79,184,647
Change in unrealized appreciation/depreciation
on investments and foreign currency transactions--net 4,714,737 3,876,039
------------ ------------
Net increase in net assets resulting from operations 19,674,920 83,987,629
------------ ------------
Dividends & Distributions to Shareholders:
Investment income--net:
Class I (355,362) --
Realized gain on investments--net:
Class I (70,082,821) (37,234,769)
Class A (2,921,708) (1,195,012)
Class B (5,849,858) (3,721,557)
Class C (358,039) (168,177)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (79,567,788) (42,319,515)
------------ ------------
Capital Share Transactions:
Net increase (decrease) in net assets derived from capital
share transactions 59,314,164 (37,783,932)
------------ ------------
Net Assets:
Total increase (decrease)in net assets (578,704) 3,884,182
Beginning of period 291,447,350 287,563,168
------------ ------------
End of period* $290,868,646 $291,447,350
============ ============
*Undistributed (accumulated) investment income (loss)--net $ (1,112,596) $ 75,026
============ ============
See Notes to Financial Statements.
</TABLE>
May 31, 2000 16 Mercury Global Holdings, Inc.
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
MERCURY GLOBAL HOLDINGS, INC.
The following per share data and ratios have been derived from
information provided in the financial statements.
Class I++
For the Six
Months
Ended
Increase (Decrease) in May 31, For the Year Ended November 30,
Net Asset Value: 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period $ 17.18 $ 14.73 $ 15.05 $ 15.12 $ 13.87
-------- -------- -------- -------- --------
Investment income (loss)--net (.03) .06 (.02) (.02) .13
Realized and unrealized gain on
investments and foreign
currency transactions--net 1.21 4.60 1.46 .86 1.87
-------- -------- -------- -------- --------
Total from investment operations 1.18 4.66 1.44 .84 2.00
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.02) -- -- (.02) --
In excess of investment
income--net -- -- -- (.10) --
Realized gain on
investments--net (4.65) (2.21) (1.76) (.79) (.75)
-------- -------- -------- -------- --------
Total dividends and distributions (4.67) (2.21) (1.76) (.91) (.75)
-------- -------- -------- -------- --------
Net asset value, end of period $ 13.69 $ 17.18 $ 14.73 $ 15.05 $ 15.12
======== ======== ======== ======== ========
Total Investment Return:**
Based on net asset value per
share 6.58%+++ 36.20% 11.41% 6.04% 15.20%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement 1.02%* 1.28% -- -- --
======== ======== ======== ======== ========
Expenses 1.27%* 1.38% 1.39% 1.39% 1.37%
======== ======== ======== ======== ========
Investment income (loss)--net (.43%)* .44% (.11%) (.12%) .92%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period
(in thousands) $259,948 $260,168 $254,472 $344,940 $398,310
======== ======== ======== ======== ========
Portfolio turnover 16.67% 110.82% 35.59% 54.50% 41.14%
======== ======== ======== ======== ========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding. Prior to April 3, 2000, Class
I Shares were designated Class A Shares.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
May 31, 2000 17 Mercury Global Holdings, Inc.
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<CAPTION>
MERCURY GLOBAL HOLDINGS, INC.
The following per share data and ratios have been derived from
information provided in the financial statements.
Class A++
For the Six
Months
Ended
Increase (Decrease) in May 31, For the Year Ended November 30,
Net Asset Value: 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period $ 17.02 $ 14.65 $ 14.97 $ 15.04 $ 13.84
-------- -------- -------- -------- --------
Investment income (loss)--net (.05) .03 (.05) (.06) .09
Realized and unrealized gain on
investments and foreign
currency transactions--net 1.21 4.55 1.46 .87 1.86
-------- -------- -------- -------- --------
Total from investment operations 1.16 4.58 1.41 .81 1.95
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- -- (.01) --
In excess of investment
income--net -- -- -- (.08) --
Realized gain on
investments--net (4.64) (2.21) (1.73) (.79) (.75)
-------- -------- -------- -------- --------
Total dividends and distributions (4.64) (2.21) (1.73) (.88) (.75)
-------- -------- -------- -------- --------
Net asset value, end of period $ 13.54 $ 17.02 $ 14.65 $ 14.97 $ 15.04
======== ======== ======== ======== ========
Total Investment Return:**
Based on net asset value per
share 6.43%+++ 35.80% 11.19% 5.80% 14.86%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement 1.27%* 1.53% -- -- --
======== ======== ======== ======== ========
Expenses 1.51%* 1.62% 1.64% 1.64% 1.63%
======== ======== ======== ======== ========
Investment income (loss)--net (.67%)* .19% (.38%) (.39%) .60%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period
(in thousands) $ 12,518 $ 10,186 $ 7,882 $ 8,486 $ 4,688
======== ======== ======== ======== ========
Portfolio turnover 16.67% 110.82% 35.59% 54.50% 41.14%
======== ======== ======== ======== ========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding. Prior to April 3, 2000, Class
A Shares were designated Class D Shares.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
May 31, 2000 18 Mercury Global Holdings, Inc.
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<CAPTION>
MERCURY GLOBAL HOLDINGS, INC.
The following per share data and ratios have been
derived from information provided in the
financial statements.
Class B++
For the Six
Months
Ended
Increase (Decrease) in May 31, For the Year Ended November 30,
Net Asset Value: 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period $ 15.95 $ 13.95 $ 14.31 $ 14.40 $ 13.38
-------- -------- -------- -------- --------
Investment loss--net (.10) (.07) (.15) (.17) (.02)
Realized and unrealized gain on
investments and foreign
currency transactions--net 1.14 4.28 1.39 .84 1.79
-------- -------- -------- -------- --------
Total from investment operations 1.04 4.21 1.24 .67 1.77
-------- -------- -------- -------- --------
Less distributions from realized
gain on investments--net (4.52) (2.21) (1.60) (.76) (.75)
-------- -------- -------- -------- --------
Net asset value, end of period $ 12.47 $ 15.95 $ 13.95 $ 14.31 $ 14.40
======== ======== ======== ======== ========
Total Investment Return:**
Based on net asset value per
share 6.01%+++ 34.80% 10.32% 4.98% 13.97%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement 2.03%* 2.32% -- -- --
======== ======== ======== ======== ========
Expenses 2.28%* 2.41% 2.44% 2.42% 2.40%
======== ======== ======== ======== ========
Investment loss--net (1.46%)* (.56%) (1.10%) (1.11%) (.11%)
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period
(in thousands) $ 16,882 $ 19,873 $ 24,148 $ 66,791 $ 44,311
======== ======== ======== ======== ========
Portfolio turnover 16.67% 110.82% 35.59% 54.50% 41.14%
======== ======== ======== ======== ========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
May 31, 2000 19 Mercury Global Holdings, Inc.
<TABLE>
FINANCIAL HIGHLIGHTS (CONCLUDED)
<CAPTION>
MERCURY GLOBAL HOLDINGS, INC.
The following per share data and ratios have been derived from
information provided in the financial statements.
Class C++
For the Six
Months
Ended
Increase (Decrease) in May 31, For the Year Ended November 30,
Net Asset Value: 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period $ 15.86 $ 13.88 $ 14.28 $ 14.41 $ 13.38
-------- -------- -------- -------- --------
Investment loss--net (.10) (.08) (.16) (.17) (.01)
Realized and unrealized gain on
investments and foreign
currency transactions--net 1.13 4.27 1.39 .83 1.79
-------- -------- -------- -------- --------
Total from investment operations 1.03 4.19 1.23 .66 1.78
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- -- --** --
In excess of investment
income--net -- -- -- --** --
Realized gain on
investments--net (4.54) (2.21) (1.63) (.79) (.75)
-------- -------- -------- -------- --------
Total dividends and distributions (4.54) (2.21) (1.63) (.79) (.75)
-------- -------- -------- -------- --------
Net asset value, end of period $ 12.35 $ 15.86 $ 13.88 $ 14.28 $ 14.41
======== ======== ======== ======== ========
Total Investment Return:***
Based on net asset value per
share 5.98%+++ 34.84% 10.21% 4.96% 14.05%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement 2.04%* 2.32% -- -- --
======== ======== ======== ======== ========
Expenses 2.29%* 2.41% 2.46% 2.43% 2.41%
======== ======== ======== ======== ========
Investment loss--net (1.45%)* (.60%) (1.08%) (1.09%) (.09%)
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period
(in thousands) $ 1,521 $ 1,220 $ 1,061 $ 5,964 $ 910
======== ======== ======== ======== ========
Portfolio turnover 16.67% 110.82% 35.59% 54.50% 41.14%
======== ======== ======== ======== ========
*Annualized.
**Amount is less than $.01 per share.
***Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
May 31, 2000 20 Mercury Global Holdings, Inc.
NOTES TO FINANCIAL STATEMENTS
MERCURY GLOBAL HOLDINGS, INC.
1 Significant Accounting Policies:
Mercury Global Holdings, Inc. (the "Fund") (formerly Merrill Lynch
Global Holdings, Inc.) is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment
company. The Fund's financial statements are prepared in accordance
with accounting principles generally accepted in the United States
of America, which may require the use of management accruals and
estimates. These unaudited financial statements reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim period presented. All
such adjustments are of a normal recurring nature. The Fund offers
four classes of shares. Shares of Class I and Class A 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 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. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of securities--Portfolio securities that are traded on
stock exchanges are valued at the last sale price on the exchange on
which such securities are traded, as of the close of business on the
day the securities are being valued or, lacking any sales, at the
last available bid price. Securities traded in the over-the-counter
market are valued at the last available bid price prior to the time
of valuation. In cases where securities are traded on more than one
exchange, the securities are valued on the exchange designated by or
under the authority of the Board of Directors as the primary market.
Securities that are traded both in the over-the-counter market and
on a stock exchange are valued according to the broadest and most
representative market. Options written or purchased are valued at
the last sale price in the case of exchange-traded options. In the
case of options traded in the over-the-counter market, valuation is
the last asked price (options written) or the last bid price
(options purchased). Short-term securities are valued at amortized
cost, which approximates market value. Other investments, including
futures contracts and related options, are stated at market value.
Securities and assets for which market value quotations are not
available are valued at their fair value as determined in good faith
by or under the direction of the Fund's Board of Directors.
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
May 31, 2000 21 Mercury Global Holdings, Inc.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(c) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies to increase or decrease the level of
risk to which the Fund is exposed more quickly and efficiently than
transactions in other types of instruments. Losses may arise due to
changes in the value of the contract or if the counterparty does not
perform under the contract.
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. Such contracts
are not entered on the Fund's records. However, the effect on
operations is recorded from the date the Fund enters into such
contracts.
* Foreign currency options and futures--The Fund may also purchase
or sell listed or over-the-counter foreign currency options, foreign
currency futures and related options on foreign currency futures as
a short or long hedge against possible variations in foreign
exchange rates. Such transactions may be effected with respect to
hedges on non-US dollar denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated
to be purchased by the Fund.
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.
May 31, 2000 22 Mercury Global Holdings, Inc.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required. Under the applicable foreign tax law, a
withholding tax may be imposed on interest, dividends, and capital
gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Dividend income is recorded on the ex-
dividend dates. Dividends from foreign securities where the ex-
dividend date may have passed are subsequently recorded when the
Fund has determined the ex-dividend date. Interest income 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 Fund are recorded on the ex-dividend dates.
2 Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Asset Management, L.P., ("MLAM"). The general partner
of MLAM is Princeton Services, Inc. ("PSI"), an indirect wholly-
owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is
the limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor, Inc. ("MLFD" or the "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 Fund, MLAM receives monthly
compensation at the annual rate of 1.0% of the average daily net
assets of the Fund. As a result of a voluntary waiver of expenses
beginning on July 13, 1999, the Fund will pay a monthly fee based
upon the average daily value of the Fund's net assets at the annual
rate of .75%. For the six months ended May 31, 2000, MLAM earned
fees of $1,611,726, of which $402,862 was voluntarily waived.
Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Fund Act of 1940, the Fund pays
May 31, 2000 23 Mercury Global Holdings, Inc.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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., also provides account maintenance and distribution services to
the Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the six months ended May 31, 2000, MLFD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Fund's Class I and Class A Shares as
follows:
MLFD MLPF&S
Class I $1,142 $3,639
Class A $ 97 $1,764
For the six months ended May 31, 2000, MLPF&S received contingent
deferred sales charges of $5,734 and $143 relating to transactions
in Class B and Class C Shares, respectively.
In addition, MLPF&S received $13,193 in commissions on the execution
of portfolio security transactions for the Fund for the six months
ended May 31, 2000.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., acts as the Fund's transfer agent.
Accounting services are provided to the Fund by MLAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of MLAM, PSI, FDS, PFD, and/or ML & Co.
3 Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended May 31, 2000 were $51,734,822 and
$57,617,964, respectively.
Net realized gains (losses) for the six months ended May 31, 2000
and net unrealized gains (losses) as of May 31, 2000 were as
follows:
May 31, 2000 24 Mercury Global Holdings, Inc.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $15,912,633 $ 86,494,485
Foreign currency transactions (120,190) (27,525)
-----------------------------
Total $15,792,443 $ 86,466,960
=============================
As of May 31, 2000, net unrealized appreciation for Federal income
tax purposes aggregated $86,494,485, of which $104,390,338 related
to appreciated securities and $17,895,853 related to depreciated
securities. The aggregate cost of investments at May 31, 2000 for
Federal income tax purposes was $204,598,953.
4 Capital Share Transactions:
A net increase (decrease) in net assets derived from capital share
transactions was $59,314,164 and $(37,783,932) for the six months
ended May 31, 2000 and for the year ended November 30, 1999,
respectively.
Transactions in capital shares for each class were as follows:
Class I Shares for the Six Months
Ended May 31, 2000 Shares Dollar Amount
Shares sold 3,127,036 $ 48,435,174
Shares issued to shareholders in reinvestment
of dividends and distributions 4,597,261 63,718,035
-----------------------------
Total issued 7,724,297 112,153,209
Shares redeemed (3,878,046) (59,437,371)
-----------------------------
Net increase 3,846,251 $ 52,715,838
=============================
Class I Shares for the Year
Ended November 30, 1999 Shares Dollar Amount
Shares sold 1,566,566 $ 22,329,992
Shares issued to shareholders in
reinvestment of distributions 2,482,823 32,748,430
-----------------------------
Total issued 4,049,389 55,078,422
Shares redeemed (6,181,763) (86,985,561)
-----------------------------
Net decrease (2,132,374) $ (31,907,139)
=============================
Class A Shares for the Six Months
Ended May 31, 2000 Shares Dollar Amount
Shares sold 97,595 $ 1,553,632
Shares issued to shareholders in reinvestment
of distributions 186,893 2,566,036
Automatic conversion of shares 177,459 2,741,546
-----------------------------
Total issued 461,947 6,861,214
Shares redeemed (135,969) (2,077,726)
-----------------------------
Net increase 325,978 $ 4,783,488
=============================
May 31, 2000 25 Mercury Golbal Holdings, Inc.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Class A Shares for the Year
Ended November 30, 1999 Shares Dollar Amount
Shares sold 94,992 $ 1,383,206
Shares issued to shareholders in
reinvestment of distributions 76,851 1,006,749
Automatic conversion of shares 156,287 2,222,530
-----------------------------
Total issued 328,130 4,612,485
Shares redeemed (267,795) (3,746,940)
-----------------------------
Net increase 60,335 $ 865,545
=============================
Class B Shares for the Six Months
Ended May 31, 2000 Shares Dollar Amount
Shares sold 346,085 $ 5,198,123
Shares issued to shareholders in
reinvestment of distributions 374,448 4,751,741
-----------------------------
Total issued 720,533 9,949,864
Automatic conversion of shares (192,055) (2,741,546)
Shares redeemed (420,974) (6,001,934)
-----------------------------
Net increase 107,504 $ 1,206,384
=============================
Class B Shares for the Year
Ended November 30, 1999 Shares Dollar Amount
Shares sold 167,901 $ 2,229,038
Shares issued to shareholders in
reinvestment of distributions 260,987 3,225,801
-----------------------------
Total issued 428,888 5,454,839
Automatic conversion of shares (166,104) (2,222,530)
Shares redeemed (748,258) (9,969,586)
-----------------------------
Net decrease (485,474) $ (6,737,277)
=============================
Class C Shares for the Six Months
Ended May 31, 2000 Shares Dollar Amount
Shares sold 28,760 $ 405,495
Shares issued to shareholders in
reinvestment of distributions 26,300 330,587
-----------------------------
Total issued 55,060 736,082
Shares redeemed (8,827) (127,628)
-----------------------------
Net increase 46,233 $ 608,454
=============================
May 31, 2000 26 Mercury Global Holdings, Inc.
NOTES TO FINANCIAL STATEMENTS
(CONCLUDED)
Class C Shares for the Year
Ended November 30, 1999 Shares Dollar Amount
Shares sold 16,956 $ 221,941
Shares issued to shareholders in
reinvestment of distributions 12,475 153,325
-----------------------------
Total issued 29,431 375,266
Shares redeemed (28,923) (380,327)
-----------------------------
Net increase (decrease) 508 $ (5,061)
=============================
5 Commitments:
At May 31, 2000, the Fund had entered into foreign exchange
contracts under which it had agreed to purchase and sell various
foreign currencies with approximate values of $1,464,000 and
$1,563,000, respectively.
May 31, 2000 27 Mercury Global Holdings, Inc.
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 Global Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
