MERRILL LYNCH
GLOBAL
HOLDINGS, INC.
FUND LOGO
Annual Report
November 30, 1999
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 11/30/99
Percent of
Ten Largest Industries Net Assets
Wireline Communication 19.2%
Communications Equipment 13.0
Electronics 8.8
Wireless Communication 7.8
Computers 5.5
Retail Stores 5.1
Energy 4.3
Pharmaceuticals 3.4
Information Processing 2.9
Multi-Industry 2.7
Percent of
Ten Largest Equity Holdings Net Assets
NTT Mobile Communications Network, Inc. 4.9%
Cisco Systems, Inc. 4.6
COLT Telecom Group PLC 3.9
Ito-Yokado Co., Ltd. 3.9
Nippon Telegraph & Telephone Corporation (NTT) 3.3
Sun Microsystems, Inc. 3.2
Texas Instruments Incorporated 3.0
STMicroelectronics 2.7
Nokia Oyj 2.6
Mannesmann AG 2.3
Merrill Lynch Global Holdings, Inc., November 30, 1999
DEAR SHAREHOLDER
The Environment
During the six-month period ended November 30, 1999, US economic
growth continued strengthening while inflationary pressures remained
contained. The US financial markets were volatile, as stock prices
declined for the third consecutive month in September, but then
rebounded in October and advanced on a technology-driven rally in
November. Significant strength in small-capitalization stocks also
emerged in November, particularly in the small cap growth sector as
reflected in the 10.57% rise in the unmanaged Russell 2000 Growth
Index.
Throughout the latter half of the period, investor psychology was
mixed as to whether the Federal Reserve Board would increase
interest rates for the third time this year. At its meeting on
November 16, 1999, the central bank announced its move to tighten 25
basis points (0.25%), essentially putting short-term interest rates
back to where they were before the three quarter-point cuts that
were made last fall. Although long-term bond yields also increased
during the period, investors appeared to accept that the move by the
Federal Reserve Board would contain inflationary pressure. However,
this view may not hold if economic growth continues unabated by the
New Year.
Fiscal Year In Review
For the fiscal year ended November 30, 1999, the total returns for
Merrill Lynch Global Holdings, Inc.'s Class A, Class B, Class C and
Class D Shares were +36.20%, +34.80%, +34.84% and +35.80%,
respectively. (Results shown do not reflect sales charges and would
be lower if sales charges were included. Complete performance
information can be found on pages 4--6 of this report to
shareholders.) This compares to the +21.22% total return for the
unmanaged Morgan Stanley Capital International (MSCI) World Stock
Index (in US dollars) for the same period.
The reason for the fund's outperformance relative to the MSCI World
Stock Index was our shift in investment focus toward technology
companies, particularly in the communications equipment and
components sector, from the July 1999 to September 1999 period. The
ten largest equity investments at the end of the fund's fiscal year
were all meaningful contributors to the positive absolute and
relative investment returns. The wireline communication industry
sector, which was the fund's largest weighting at the end of the
fiscal year, was followed by the communications equipment,
electronics, wireless communication, computers, retail stores,
energy, pharmaceuticals, information processing and multi-industry
sectors, which in aggregate were equal to 72.7% of net assets at
November 30, 1999.
Another change in the industry structure of the portfolio during the
July to September 1999 period, which contributed to the positive
comparative investment returns, was the significant reduction in
investment stock holdings in banks, insurance companies, other
financial service organizations, food merchandising and retail
companies, pharmaceutical companies and household products
companies. We maintained a relatively low level of net cash reserves
in the portfolio for most of the fiscal year because of our positive
outlook for equity investment returns during the period.
In Conclusion
We thank you for your continued investment in Merrill Lynch Global
Holdings, Inc., and we look forward to discussing our outlook and
strategies in our upcoming report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Lawrence R. Fuller)
Lawrence R. Fuller
Senior Vice President and
Portfolio Manager
January 6, 2000
To reduce shareholder expenses, Merrill Lynch Global Holdings, Inc.
will no longer be printing and mailing quarterly reports to
shareholders. We will continue to provide you with reports on a semi-
annual and annual basis.
Officers and
Directors
Terry K. Glenn, President and Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Robert C. Doll, 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
(800) 637-3863
Donald Cecil and Edward H. Meyer, Directors of Merrill Lynch Global
Holdings, Inc. have recently retired. The Fund's Board of Directors
wishes Mr. Cecil and Mr. Meyer well in their retirements.
Merrill Lynch Global Holdings, Inc., November 30, 1999
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:
11/89 11/99
ML Global Holdings, Inc.++--
Class A Shares* $ 9,475 $27,722
ML Global Holdings, Inc.++--
Class B Shares* $10,000 $26,397
Morgan Stanley Capital International
World Stock Index++++ $10,000 $28,163
A line graph depicting the growth of an investment in the Fund's
Class C Shares 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** 11/99
ML Global Holdings, Inc.++--
Class C Shares* $10,000 $19,003
ML Global Holdings, Inc.++--
Class D Shares* $ 9,475 $18,751
Morgan Stanley Capital International
World Stock Index++++ $10,000 $22,005
[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 from 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 9/30/99 +28.93% +22.16%
Five Years Ended 9/30/99 +10.92 + 9.73
Ten Years Ended 9/30/99 + 9.31 + 8.72
[FN]
*Maximum sales charge is 5.25%. (Prior to October 21, 1994, Class A
Shares were offered at a higher sales charge. Thus, actual returns
would have been lower than shown for the five-year and ten-year
periods.)
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/99 +27.68% +23.68%
Five Years Ended 9/30/99 + 9.80 + 9.80
Ten Years Ended 9/30/99 + 8.19 + 8.19
[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 9/30/99 +27.64% +26.64%
Inception (10/21/94) through 9/30/99 + 9.79 + 9.79
[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 9/30/99 +28.58% +21.83%
Inception (10/21/94) through 9/30/99 +10.66 + 9.46
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Holdings, Inc., November 30, 1999
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results
<CAPTION>
Ten Years/
3 Month 12 Month Since Inception
As of November 30, 1999 Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Holdings, Inc. Class A Shares* +20.56% +36.20% +192.54%
ML Global Holdings, Inc. Class B Shares* +20.29 +34.80 +164.00
ML Global Holdings, Inc. Class C Shares* +20.33 +34.84 + 90.03
ML Global Holdings, Inc. Class D Shares* +20.54 +35.80 + 97.89
MSCI World Stock Index** + 7.07 +21.22 +181.63/+120.05
<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 ten years for Class A
& Class B Shares and from 10/21/94 for Class C & Class D Shares.
**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-year/since
inception total returns are for the ten years ended 11/30/99 and
from 10/31/94, respectively.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
NORTH Shares Percent of
AMERICA Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
Canada Communications 62,000 Nortel Networks Corporation $ 4,588,000 1.5%
Equipment
Wireline 100,000 ++AT&T Canada Inc. 3,762,500 1.3
Communication 150,000 ++Rogers Communications, Inc. 'B' 3,406,776 1.2
------------ ------
7,169,276 2.5
Total Investments in Canada 11,757,276 4.0
United States Advertising 30,000 The Interpublic Group of Companies, Inc. 1,410,000 0.5
Broadcasting-- 26,000 ++AMFM Inc. 1,837,875 0.6
Radio & Television 30,000 ++CBS Corporation 1,560,000 0.5
5,000 ++Clear Channel Communications, Inc. 401,875 0.2
30,000 ++Infinity Broadcasting Corp. (Class A) 1,093,125 0.4
------------ ------
4,892,875 1.7
Chemicals 15,000 E.I. du Pont de Nemours and Company 891,563 0.3
Communications 82,000 ++3Com Corporation 3,264,625 1.1
Equipment 150,000 ++Cisco Systems, Inc. 13,368,750 4.6
16,000 ++JDS Uniphase Corporation 3,659,000 1.3
47,000 Lucent Technologies Inc. 3,433,938 1.2
------------ ------
23,726,313 8.2
Computers 80,000 ++EMC Corporation 6,685,000 2.3
69,500 ++Sun Microsystems, Inc. 9,187,031 3.2
------------ ------
15,872,031 5.5
Electrical Equipment 41,000 General Electric Company 5,330,000 1.8
Electronics 25,000 ++LSI Logic Corporation 1,510,938 0.5
90,000 Texas Instruments Incorporated 8,645,625 3.0
9,000 ++Xilinx, Inc. 804,937 0.3
------------ ------
10,961,500 3.8
Energy 8,000 Duke Energy Corporation 405,500 0.2
55,000 El Paso Energy Corporation 2,117,500 0.7
132,000 Enron Corp. 5,024,250 1.7
8,000 UtiliCorp United Inc. 161,000 0.0
------------ ------
7,708,250 2.6
Entertainment 38,000 The Walt Disney Company 1,059,250 0.4
Financial Services 5,013 T. Rowe Price Associates, Inc. 180,155 0.0
Information 60,000 ++America Online, Inc. 4,361,250 1.5
Processing 15,000 ++At Home Corporation (Class A) 728,438 0.3
------------ ------
5,089,688 1.8
Oil Services 20,000 Schlumberger Limited 1,201,250 0.4
Pharmaceuticals 24,000 ++Amgen Inc. 1,092,000 0.3
29,000 Merck & Co., Inc. 2,276,500 0.8
55,000 Pfizer Inc. 1,990,313 0.7
------------ ------
5,358,813 1.8
Restaurants 40,000 McDonald's Corporation 1,800,000 0.6
Retail 19,000 ++Amazon.com, Inc. 1,615,000 0.5
Semiconductors 51,000 ++Applied Materials, Inc. 4,969,313 1.7
Wireless 5,000 ++Sprint Corp. (PCS Group) 458,750 0.2
Communication
Wireline 53,500 AT&T Corp. 2,989,313 1.0
Communication 36,000 ++Covad Communications Group, Inc. 1,867,500 0.7
20,000 ++MCI WorldCom Inc. 1,653,750 0.5
26,000 ++NorthPoint Communications Group, Inc. 732,875 0.2
18,000 ++Qwest Communications International Inc. 614,250 0.2
90,000 Sprint Corp. (FON Group) 6,243,750 2.2
------------ ------
14,101,438 4.8
Travel & Lodging 17,000 Carnival Corporation 750,125 0.3
Total Investments in the United States 107,376,314 36.9
Total Investments in North America
(Cost--$82,370,644) 119,133,590 40.9
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
PACIFIC BASIN/ Shares Percent of
ASIA Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
Australia Broadcasting & 100,000 The News Corporation Limited $ 865,324 0.3%
Publishing
Wireless 400,000 ++Cable & Wireless Optus Limited 1,042,712 0.4
Communication
Total Investments in Australia 1,908,036 0.7
Japan Automobile 75,000 Toyota Motor Corporation 2,539,387 0.8
Leisure 22,000 Sony Corporation 4,068,891 1.4
Photography 100,000 Canon, Inc. 2,935,708 1.0
Retail Stores 105,000 Ito-Yokado Co., Ltd. 11,302,476 3.9
Transportation 1,000 East Japan Railway Company 5,871,416 2.0
Wireless Communication 405 NTT Mobile Communications Network, Inc. 14,188,277 4.9
Wireline Communication 535 Nippon Telegraph & Telephone Corporation (NTT) 9,580,683 3.3
Total Investments in Japan 50,486,838 17.3
Total Investments in the
Pacific Basin/Asia (Cost--$36,251,219) 52,394,874 18.0
WESTERN
EUROPE
Denmark Wireline Communication 34,000 Tele Danmark A/S 2,190,906 0.8
Total Investments in Denmark 2,190,906 0.8
Finland Communications 54,000 Nokia Oyj 7,644,028 2.6
Equipment
Total Investments in Finland 7,644,028 2.6
France Banking & Financial 16,000 ++Credit Lyonnais 534,329 0.2
Broadcasting-- 5,000 Societe Television Francaise 1 1,812,240 0.6
Radio & Television
Electronics 56,500 STMicroelectronics 7,679,367 2.7
Food 3,000 Groupe Danone 695,598 0.2
Information Processing 1,500 Cap Gemini SA 265,191 0.1
Insurance 5,000 Axa 674,053 0.2
Total Investments in France 11,660,778 4.0
Germany Banking & Financial 7,000 Commerzbank AG 227,285 0.1
10,000 Deutsche Bank AG (Registered Shares) 658,951 0.2
7,000 Dresdner Bank AG 330,532 0.1
------------ ------
1,216,768 0.4
Electronics 65,000 Siemens AG 6,550,744 2.3
Insurance 3,000 Allianz AG (Registered Shares) 878,181 0.3
Multi-Industry 33,000 Mannesmann AG 6,857,516 2.3
20,000 Veba AG 976,596 0.4
------------ ------
7,834,112 2.7
Retail Stores 67,000 Metro AG 3,588,638 1.2
Software--Computer 1,000 SAP AG (Systeme, Anwendungen, Produkte in
der Datenverarbeitung) (Preferred) 404,230 0.1
Total Investments in Germany 20,472,673 7.0
Italy Banking & Financial 215,000 Banca di Roma 287,894 0.1
Insurance 450,000 Istituto Nazionale delle
Assicurazioni (INA) SpA 1,254,976 0.4
Total Investments in Italy 1,542,870 0.5
Netherlands Chemicals 29,000 Akzo Nobel NV 1,240,881 0.4
27,000 DSM NV 924,242 0.3
------------ ------
2,165,123 0.7
Energy 34,000 Royal Dutch Petroleum Company 2,000,129 0.7
Insurance 48,000 ING Groep NV 2,699,029 0.9
Leisure 13,200 Koninklijke (Royal) Philips Electronics NV 1,606,067 0.5
Semiconductors 18,000 ++ASM Lithography Holding NV 1,748,812 0.6
Wireline 52,200 ++Equant 5,045,276 1.8
Communication
Total Investments in the Netherlands 15,264,436 5.2
Portugal Wireline 181,500 Portugal Telecom SA (Registered Shares) 1,745,112 0.6
Communication
Total Investments in Portugal 1,745,112 0.6
Spain Banking & Financial 100,000 Banco Santander Central Hispano, SA 1,098,419 0.4
Information 100,000 ++Telefonica Publicidad e Informacion, SA 3,030,468 1.0
Processing
Total Investments in Spain 4,128,887 1.4
Sweden Communications 40,000 Telefonaktiebolaget LM Ericsson 'B' 1,941,633 0.7
Equipment
Total Investments in Sweden 1,941,633 0.7
Switzerland Food 600 Nestle SA (Registered Shares) 1,079,593 0.3
Pharmaceuticals 1,000 Novartis AG (Registered Shares) 1,558,531 0.6
Total Investments in Switzerland 2,638,124 0.9
United Kingdom Banking & Financial 20,000 Barclays PLC 576,232 0.2
90,000 Lloyds TSB Group PLC 1,149,677 0.4
------------ ------
1,725,909 0.6
Electrical Equipment 327,700 Invensys PLC 1,523,168 0.5
Energy 270,000 BP Amoco PLC 2,742,035 1.0
Insurance 7,000 CGU PLC 105,855 0.1
Pharmaceuticals 15,000 AstraZeneca Group PLC 668,078 0.2
40,000 Glaxo Wellcome PLC 1,195,760 0.4
88,000 SmithKline Beecham PLC 1,173,857 0.4
------------ ------
3,037,695 1.0
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
WESTERN EUROPE Shares Percent of
(concluded) Industries Held Investments Value Net Assets
<S> <S> <C> <S> <C> <C>
United Kingdom Publishing 40,000 EMAP PLC $ 701,665 0.2%
(concluded)
Wireless 1,425,000 Vodafone AirTouch PLC 6,697,200 2.3
Communication
Wireline 300,000 ++COLT Telecom Group PLC 11,303,372 3.9
Communication 110,000 ++Energis PLC 4,463,248 1.5
------------ ------
15,766,620 5.4
Total Investments in the United Kingdom 32,300,147 11.1
Total Investments in Western Europe
(Cost--$72,662,600) 101,529,594 34.8
SHORT-TERM Face
SECURITIES Amount Issue
Commercial $11,778,000 General Motors Acceptance Corp., 5.75%
Paper* due 12/01/1999 11,778,000 4.0
Total Investments in Short-Term Securities
(Cost--$11,778,000) 11,778,000 4.0
Total Investments (Cost--$203,062,463) 284,836,058 97.7
Other Assets Less Liabilities 6,611,292 2.3
------------ ------
Net Assets $291,447,350 100.0%
============ ======
<FN>
*Commercial Paper is traded on a discount basis; the interest rate
shown reflects the discount rate paid at the time of purchase by the
Company.
++Non-income producing security.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of November 30, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$203,062,463) $284,836,058
Cash 25,740
Foreign cash 1,275,482
Receivables:
Securities sold $ 5,226,579
Capital shares sold 508,461
Dividends 286,326 6,021,366
------------
Prepaid registration fees and other assets 56,371
------------
Total assets 292,215,017
------------
Liabilities: Payables:
Capital shares redeemed 525,751
Investment adviser 24,576
Distributor 20,128 570,455
------------
Accrued expenses and other liabilities 197,212
------------
Total liabilities 767,667
------------
Net Assets: Net assets $291,447,350
============
Net Assets Class A Shares of Common Stock, $.10 par value, 100,000,000
Consist of: shares authorized $ 1,514,160
Class B Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 124,592
Class C Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 7,693
Class D Shares of Common Stock, $.10 par value, 100,000,000
shares authorized 59,853
Paid-in capital in excess of par 129,277,173
Undistributed investment income--net 75,026
Undistributed realized capital gains on investments and foreign
currency transactions--net 78,636,630
Unrealized appreciation on investments and foreign currency
transactions--net 81,752,223
------------
Net assets $291,447,350
============
Net Asset Class A--Based on net assets of $260,167,873 and 15,141,597
Value: shares outstanding $ 17.18
============
Class B--Based on net assets of $19,873,570 and 1,245,916
shares outstanding $ 15.95
============
Class C--Based on net assets of $1,219,912 and 76,931 shares
outstanding $ 15.86
============
Class D--Based on net assets of $10,185,995 and 598,527
shares outstanding $ 17.02
============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1999
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended November 30, 1999
<S> <S> <C> <C>
Investment Income: Dividends (net of $330,891 foreign withholding tax) $ 3,685,648
Interest and discount earned 906,143
------------
Total income 4,591,791
------------
Expenses: Investment advisory fees $ 2,659,472
Transfer agent fees--Class A 443,669
Account maintenance and distribution fees--Class B 208,751
Professional fees 145,954
Printing and shareholder reports 116,709
Custodian fees 87,968
Registration fees 57,308
Accounting services 54,290
Directors' fees and expenses 44,867
Transfer agent fees--Class B 44,644
Account maintenance fees--Class D 21,235
Transfer agent fees--Class D 15,946
Account maintenance and distribution fees--Class C 10,721
Transfer agent fees--Class C 2,386
Other 1,416
------------
Total expenses before reimbursement 3,915,336
Reimbursement of expenses (250,488)
------------
Total expenses after reimbursement 3,664,848
------------
Investment income--net 926,943
------------
Realized & Realized gain (loss) from:
Unrealized Gain Investments--net 79,441,207
(Loss) on Foreign currency transactions--net (256,560) 79,184,647
Investments & ------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net 3,912,816
Foreign currency transactions--net (36,777) 3,876,039
------------ ------------
Net realized and unrealized gain on investments
and foreign currency transactions 83,060,686
------------
Net Increase in Net Assets Resulting from Operations $ 83,987,629
============
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: 1999 1998
<S> <S> <C> <C>
Operations: Investment income (loss)--net $ 926,943 $ (945,783)
Realized gain on investments and foreign
currency transactions--net 79,184,647 41,355,924
Change in unrealized appreciation/depreciation on
investments and foreign currency transactions--net 3,876,039 4,119,266
------------ ------------
Net increase in net assets resulting from operations 83,987,629 44,529,407
------------ ------------
Distributions to Realized gain on investments--net:
Shareholders: Class A (37,234,769) (39,878,951)
Class B (3,721,557) (7,314,996)
Class C (168,177) (664,387)
Class D (1,195,012) (999,340)
------------ ------------
Net decrease in net assets resulting from
distributions to shareholders (42,319,515) (48,857,674)
------------ ------------
Capital Share Net decrease in net assets derived from capital
Transactions: share transactions (37,783,932) (134,289,599)
------------ ------------
Net Assets: Total increase (decrease) in net assets 3,884,182 (138,617,866)
Beginning of year 287,563,168 426,181,034
------------ ------------
End of year* $291,447,350 $287,563,168
============ ============
<FN>
*Undistributed (accumulated) investment income (loss)--net $ 75,026 $ (595,357)
============ ============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1999
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A++
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 14.73 $ 15.05 $ 15.12 $ 13.87 $ 12.82
Operating -------- -------- -------- -------- --------
Performance: Investment income (loss)--net .06 (.02) (.02) .13 .05
Realized and unrealized gain on
investments and foreign currency
transactions--net 4.60 1.46 .86 1.87 1.52
-------- -------- -------- -------- --------
Total from investment operations 4.66 1.44 .84 2.00 1.57
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- (.02) -- (.01)
In excess of investment income--net -- -- (.10) -- --
Realized gain on investments--net (2.21) (1.76) (.79) (.75) (.51)
-------- -------- -------- -------- --------
Total dividends and distributions (2.21) (1.76) (.91) (.75) (.52)
-------- -------- -------- -------- --------
Net asset value, end of year $ 17.18 $ 14.73 $ 15.05 $ 15.12 $ 13.87
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 36.20% 11.41% 6.04% 15.20% 12.92%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.28% -- -- -- --
Net Assets: ======== ======== ======== ======== ========
Expenses 1.38% 1.39% 1.39% 1.37% 1.51%
======== ======== ======== ======== ========
Investment income (loss)--net .44% (.11%) (.12%) .92% .41%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $260,168 $254,472 $344,940 $398,310 $327,270
Data: ======== ======== ======== ======== ========
Portfolio turnover 110.82% 35.59% 54.50% 41.14% 44.64%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class B++
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 13.95 $ 14.31 $ 14.40 $ 13.38 $ 12.50
Operating -------- -------- -------- -------- --------
Performance: Investment loss--net (.07) (.15) (.17) (.02) (.08)
Realized and unrealized gain on
investments and foreign currency
transactions--net 4.28 1.39 .84 1.79 1.47
-------- -------- -------- -------- --------
Total from investment operations 4.21 1.24 .67 1.77 1.39
-------- -------- -------- -------- --------
Less distributions from realized
gain on investments--net (2.21) (1.60) (.76) (.75) (.51)
-------- -------- -------- -------- --------
Net asset value, end of year $ 15.95 $ 13.95 $ 14.31 $ 14.40 $ 13.38
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 34.80% 10.32% 4.98% 13.97% 11.78%
Return:* ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 2.32% -- -- -- --
Net Assets: ======== ======== ======== ======== ========
Expenses 2.41% 2.44% 2.42% 2.40% 2.55%
======== ======== ======== ======== ========
Investment loss--net (.56%) (1.10%) (1.11%) (.11%) (.63%)
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 19,873 $ 24,148 $ 66,791 $ 44,311 $ 44,387
Data: ======== ======== ======== ======== ========
Portfolio turnover 110.82% 35.59% 54.50% 41.14% 44.64%
======== ======== ======== ======== ========
<FN>
*Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class C++
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 13.88 $ 14.28 $ 14.41 $ 13.38 $ 12.51
Operating -------- -------- -------- -------- --------
Performance: Investment loss--net (.08) (.16) (.17) (.01) (.08)
Realized and unrealized gain on
investments and foreign currency
transactions--net 4.27 1.39 .83 1.79 1.46
-------- -------- -------- -------- --------
Total from investment operations 4.19 1.23 .66 1.78 1.38
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- --* -- --
In excess of investment income--net -- -- --* -- --
Realized gain on investments--net (2.21) (1.63) (.79) (.75) (.51)
-------- -------- -------- -------- --------
Total dividends and distributions (2.21) (1.63) (.79) (.75) (.51)
-------- -------- -------- -------- --------
Net asset value, end of year $ 15.86 $ 13.88 $ 14.28 $ 14.41 $ 13.38
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 34.84% 10.21% 4.96% 14.05% 11.69%
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 2.32% -- -- -- --
Net Assets: ======== ======== ======== ======== ========
Expenses 2.41% 2.46% 2.43% 2.41% 2.55%
======== ======== ======== ======== ========
Investment loss--net (.60%) (1.08%) (1.09%) (.09%) (.63%)
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 1,220 $ 1,061 $ 5,964 $ 910 $ 376
Data: ======== ======== ======== ======== ========
Portfolio turnover 110.82% 35.59% 54.50% 41.14% 44.64%
======== ======== ======== ======== ========
<FN>
*Amount is less than $.01 per share.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class D++
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended November 30,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 14.65 $ 14.97 $ 15.04 $ 13.84 $ 12.81
Operating -------- -------- -------- -------- --------
Performance: Investment income (loss)--net .03 (.05) (.06) .09 .02
Realized and unrealized gain on
investments and foreign currency
transactions--net 4.55 1.46 .87 1.86 1.52
-------- -------- -------- -------- --------
Total from investment operations 4.58 1.41 .81 1.95 1.54
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net -- -- (.01) -- --*
In excess of investment income--net -- -- (.08) -- --
Realized gain on investments--net (2.21) (1.73) (.79) (.75) (.51)
-------- -------- -------- -------- --------
Total dividends and distributions (2.21) (1.73) (.88) (.75) (.51)
-------- -------- -------- -------- --------
Net asset value, end of year $ 17.02 $ 14.65 $ 14.97 $ 15.04 $ 13.84
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 35.80% 11.19% 5.80% 14.86% 12.73%
Return:** ======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.53% -- -- -- --
Net Assets: ======== ======== ======== ======== ========
Expenses 1.62% 1.64% 1.64% 1.63% 1.76%
======== ======== ======== ======== ========
Investment income (loss)--net .19% (.38%) (.39%) .60% .18%
======== ======== ======== ======== ========
Supplemental Net assets, end of year (in thousands) $ 10,186 $ 7,882 $ 8,486 $ 4,688 $ 3,459
Data: ======== ======== ======== ======== ========
Portfolio turnover 110.82% 35.59% 54.50% 41.14% 44.64%
======== ======== ======== ======== ========
<FN>
*Amount is less than $.01 per share.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Holdings, Inc., November 30, 1999
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 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 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.
* 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.
(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
$256,560 have been reclassified between undistributed net investment
income and undistributed net realized capital gains. 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, 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 Company, MLAM receives
monthly compensation at the annual rate of 1.0% of the average daily
net assets of the Company. As a result of a voluntary waiver of
expenses beginning on July 13, 1999, the Company will pay a monthly
fee based upon the average daily value of the Fund's net assets at
the following rate of .75%. For the year ended November 30, 1999,
MLAM earned fees of $2,659,472, of which $250,488 was voluntarily
waived.
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 .25% .75%
Class C .25% .75%
Class D .25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML &
Co., also provides account maintenance and distribution services to
the 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, 1999, 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 $189 $2,355
Class D $577 $5,446
Merrill Lynch Global Holdings, Inc., November 30, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
For the year ended November 30, 1999, MLPF&S received contingent
deferred sales charges of $17,494 and $43 relating to transactions
in Class B and Class C Shares, respectively.
In addition, MLPF&S received $89,263 in commissions on the execution
of portfolio security transactions for the Company for the year
ended November 30, 1999.
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, 1999 were $272,433,663 and
$347,857,209, respectively.
Net realized gains (losses) for the year ended November 30, 1999,
and net unrealized gains (losses) as of November 30, 1999 were as
follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 79,441,772 $ 81,773,595
Short-term investments (565) --
Foreign currency transactions (256,560) (21,372)
------------ ------------
Total $ 79,184,647 $ 81,752,223
============ ============
As of November 30, 1999, net unrealized appreciation for Federal
income tax purposes aggregated $81,773,595, of which $84,111,538
related to appreciated securities and $2,337,943 related to
depreciated securities. The aggregate cost of invest-ments at
November 30, 1999 for Federal income tax purposes was $203,062,463.
4. Capital Share Transactions:
A net decrease in net assets derived from capital share transactions
was $37,783,932 and $134,289,599 for the years ended November 30,
1999 and November 30, 1998, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended November 30, 1999 Shares 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 Year Dollar
Ended November 30, 1998 Shares Amount
Shares sold 3,466,422 $ 49,455,030
Shares issued to shareholders in
reinvestment of 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 B Shares for the Year Dollar
Ended November 30, 1999 Shares 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 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 C Shares for the Year Dollar
Ended November 30, 1999 Shares 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)
============ =============
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 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 D Shares for the Year Dollar
Ended November 30, 1999 Shares 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 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 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)
============ =============
5. Commitments:
At November 30, 1999, the Company had entered into foreign exchange
contracts under which it had agreed to sell various foreign
currencies with an approximate value of $775,000.
6. Subsequent Event:
On December 17, 1999, the Company's Board of Directors declared an
ordinary income dividend and a long-term capital gains distribution
payable on December 23, 1999 to shareholders of record as of
December 17, 1999 as follows:
Ordinary Long-Term
Income Capital Gains
Class A $.518820 $4.159650
Class B .356835 4.159650
Class C .378304 4.159650
Class D .478643 4.159650
Merrill Lynch Global Holdings, Inc., November 30, 1999
<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, 1999, 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, 1999 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, 1999, 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 7, 2000
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
Of the long-term capital gains distribution of $2.212478 paid to
shareholders of record on December 18, 1998, all is subject to the
20% tax rate.
Please retain this information for your records.
