MERRILL LYNCH
GLOBAL
ALLOCATION
FUND, INC.
FUND LOGO
Semi-Annual Report
April 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 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. Please see the Fund's prospectus for a description of
risks associated with global investments.
Merrill Lynch
Global Allocation
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC.
<TABLE>
Summary of
Fund's Overall
Asset Mix
As of 4/30/99
<CAPTION>
Percent of Fund's Net Assets Reference Portfolio
4/30/99 1/31/99 Percentages
<S> <C> <C> <C>
North & South American Equities 27.3%* 23.5%* 36.0%
European Equities 10.9 10.7 11.0
Pacific Basin Equities 14.9 11.8 13.0
Total Equities 53.1 46.0 60.0
US Dollar Denominated Fixed-Income Securities 35.3 43.2 24.0
US Issuers 12.9 19.9 --
Non-US Issuers 22.4 23.3 --
Non-US Dollar Denominated Fixed-Income Securities 5.5 5.0 16.0
Total Fixed-Income Securities 40.8++ 48.2++ 40.0
Cash & Cash Equivalents 6.1 5.8 --
<FN>
*Includes value of Financial Futures Contracts.
++Includes Preferred Stock.
Officers and
Directors
Terry K. Glenn, President and Director
Donald Cecil, Director
Roland M. Machold, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Bryan N. Ison, Senior Vice President and Portfolio Manager
Dennis W. Stattman, Vice President
Donald C. Burke, Vice President and Treasurer
Phillip Gillespie, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
DEAR SHAREHOLDER
For the three months ended April 30, 1999, Merrill Lynch Global
Allocation Fund, Inc.'s Class A, Class B, Class C and Class D Shares
had total returns of +14.52%, +14.27%%, +14.31% and +14.54%,
respectively. Fund results do not reflect sales charges, and would
be lower if sales charges were included. Complete performance
information can be found on pages 4 and 5 of this report to
shareholders.)
Long-Term Risk-Adjusted
Performance Record Intact
The strength in the Fund's performance during the April quarter
reflects an extension of the gains that began with the rebound from
a period of weakness from mid-July 1998 through mid-October 1998.
During the quarter, the Fund completed its recovery from those
losses and the net asset value of its Class A and Class B Shares
attained new all-time highs adjusted for dividend reinvestment.
Many factors contributed to the Fund's improved performance thus far
in 1999. Importantly, value stocks began to outperform relative to
growth stocks, which benefited our value-oriented investment
approach. Also, many of the Fund's investments benefited from the
improved outlook for global economic growth. Furthermore, there was
improvement in the Asian debt and stock markets, including the
Japanese stock market. We have been in the process of increasing
investments in Japan for some time, as detailed below in the
"Increase in Japanese Investments" section.
We continue to manage the Fund as we have since its inception, with
investment representation across a broad spectrum of countries,
asset classes (stocks, bonds and cash equivalents), industries and
individual securities. Historically, this broad investment mandate
has served the Fund well, and has generally led to relatively modest
net asset value volatility. We view the mid-July 1998--mid-October
1998 time period as extraordinary, when spreading investment risk
among a wide variety of issues worldwide did not benefit
performance.
We are pleased to report that despite the Fund's underperformance in
the July--October period last year, its long-term risk-adjusted
performance record remains positive. As of May 31, 1999, the Fund's
Class A and Class B Shares achieved a Morningstar Overall Rating TM of
five stars, as shown below.
Increase in Japanese Investments
It is striking how drastically attitudes have changed toward
investing in Japan since the Fund began ten years ago. At the Fund's
inception, Japan was in the midst of a roaring bull market that had
exceeded the expectations of nearly all observers in its magnitude
and duration. At that time, the consensus view was that Japanese
companies were invincible. Furthermore, despite lofty price/earnings
ratios and minimal dividends, many professional investors believed
that purchasing shares of Japanese companies was a compelling
proposition. In 1989, the Japanese stock market capitalization
exceeded that of the US stock market, which mandated a heavy
weighting in Japanese stocks by investors who followed an indexing
or quasi-indexing strategy. In addition, the persistence of stock
price gains in Japan caused concerns that investors would be left
behind if they failed to invest in Japanese shares.
Of course, this situation became completely reversed over the next
ten years. The Japanese stock market peaked at the end of 1989, and
has been in a bear market since then. From inception until
relatively recently, the Fund has been underweighted in Japanese
stocks. At first, our concerns focused on the excessive valuations
for Japanese stocks; more recently, we avoided increasing Japanese
investments because of our concerns regarding the problems of the
Japanese economy, banking system and corporate governance. However,
over the past two years we have been building the Fund's exposure to
Japanese stocks, since investor sentiment regarding Japan, as well
as many financial variables, are completely opposite of what they
were ten years ago. With the Japanese economy and stock market held
in low regard, the stock market's capitalization is dramatically
smaller than that of the United States. By some valuation measures,
many Japanese stocks are noticeably less expensive than US stocks.
Japanese economic activity continues to be depressed, but a number
of policy-making entities within the Japanese government are working
to fix problems in the financial system and stimulate the economy.
In Japan's current economic and market malaise--and amidst the
robust US economic boom--global investors have lost sight of
Japan's continued strong trade position as well as the fact that
Japanese investors generate the largest amount of savings in the
world economy. We do not know when economic growth in Japan will
resume, nor can we pinpoint when Japanese stocks will again provide
superior returns. However, we do believe that at current prices
Japanese stocks offer many intriguing long-term investment
opportunities. As of April 30, 1999, 8.9% of the Fund's net assets
was invested in Japanese equities, up from 5.9% at October 31, 1998.
In Conclusion
Although we have sold and bought many different individual
securities since July 1998, the Fund's overall asset mix has been
relatively unchanged through April 30, 1999. (See "Summary of Fund's
Asset Mix" table on page 1 of this report to shareholders.)
We thank you for your investment in Merrill Lynch Global Allocation
Fund, Inc., and we look forward to reviewing our investment strategy
and outlook with you again in our next report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Bryan N. Ison)
Bryan N. Ison
Senior Vice President and
Portfolio Manager
June 16, 1999
After more than 20 years of service, Arthur Zeikel recently retired
as Chairman of Merrill Lynch Asset Management, L.P. (MLAM). Mr.
Zeikel served as President of MLAM from 1977 to 1997 and as Chairman
since December 1997. Mr. Zeikel is one of the country's most
respected leaders in asset management and presided over the growth
of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500
billion. Mr. Zeikel will remain on Merrill Lynch Global Allocation
Fund, Inc.'s Board of Directors. We are pleased to announce that
Terry K. Glenn has been elected President and Director of the Fund.
Mr. Glenn has held the position of Executive Vice President of MLAM
since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Directors
in wishing him well in his retirement from Merrill Lynch and are
pleased that he will continue as a member of the Fund's Board of
Directors.
Five-Star Morningstar Overall Rating TM--International Equity Funds
as of 4/30/99
Merrill Lynch Global Allocation Fund, Inc.
Class A & B Shares
Five-star overall ratings in the Morningstar International Equity
Funds class is out of 944 funds. Morningstar proprietary ratings
reflect historical risk-adjusted performance as of May 31, 1999. The
ratings are subject to change every month. Past performance is no
guarantee of future results. Morningstar ratings are calculated from
the Fund's three-, five-, and ten-year average annual returns (if
applicable) in excess of 90-day Treasury bill returns with
appropriate fee adjustments, and a risk factor that reflects Fund
performance below 90-day Treasury-bill returns. Merrill Lynch Global
Allocation Fund, Inc.'s Class A and Class B Shares both received
four stars, four stars, and five stars for the three-, five-, and
ten-year periods, respectively, ended May 31, 1999. The top 10% of
the funds in a broad asset class receive five stars, the next 22.5%
receive four stars, the next 35% receive three stars, the next 22.5%
receive two stars, and the bottom 10% receive one star. The Fund's
Class A and B Shares were rated against 944, 464, and 112 funds in
the Morningstar International Equity Funds class for the three-,
five-, and ten-year periods, respectively.
Ratings are only for the share classes cited; ratings for other
share classes may vary.
Merrill Lynch Global Allocation Fund, Inc., April 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.
</TABLE>
<TABLE>
Recent
Performance
Results
<CAPTION>
Ten Years/
12 Month 3 Month Since Inception
Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Allocation Fund, Inc.--Class A Shares* + 7.33% +14.52% +268.52%
ML Global Allocation Fund, Inc.--Class B Shares* + 6.28 +14.27 +232.82
ML Global Allocation Fund, Inc.--Class C Shares* + 6.22 +14.31 + 73.72
ML Global Allocation Fund, Inc.--Class D Shares* + 7.05 +14.54 + 80.04
US Stocks: Standard &Poor's 500 Index** +21.82 + 4.67 +461.10/+214.47
Non-US Stocks: Financial Times/Standard & Poor's--
Actuaries World Index (Ex-US)*** + 8.57 + 7.70 + 76.90/+42.50
USBonds: ML Government Index GA05**** + 6.23 - 1.81 +113.27/+39.83
Non-US Bonds:Salomon Brothers World Government
Bond Index (Ex-US)***** + 9.07 - 3.47 +132.22/+30.24
<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
Fund's ten year/since inception periods areClass A & Class B Shares,
for the ten years ended 4/30/99 and Class C & Class D Shares, from
10/21/94 to 4/30/99.
**An unmanaged broad-based index comprised of common stocks. Ten
years/since inception total returns are for the ten years ended
4/30/99 and from 10/21/94 to 4/30/99, respectively.
***An unmanaged capitalization-weighted index comprised of 1,631
companies in 28 countries, excluding the United States. Ten
years/since inception total returns are for the ten years ended
4/30/99 and from 10/21/94 to 4/30/99, respectively.
****An unmanaged index designed to track the total return of the
current coupon five-year US Treasury bond. Ten years/since inception
total returns are for the ten years ended 4/30/99 and from 10/21/94
to 4/30/99, respectively.
*****An unmanaged market capitalization-weighted index tracking ten
government bond indexes, excluding the United States. Ten
years/since inception total returns are for the ten years ended
4/30/99 and from 10/21/94 to 4/30/99, respectively.
</TABLE>
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/99 - 1.07% - 6.26%
Five Years Ended 3/31/99 +10.95 + 9.76
Ten Years Ended 3/31/99 +13.19 +12.58
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/99 - 2.10% - 5.63%
Five Years Ended 3/31/99 + 9.83 + 9.83
Ten Years Ended 3/31/99 +12.04 +12.04
[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 3/31/99 - 2.12% - 3.00%
Inception (10/21/94)
through 3/31/99 +11.18 +11.18
[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 3/31/99 - 1.33% - 6.51%
Inception (10/21/94)
through 3/31/99 +12.06 +10.71
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
Portfolio
Abbreviations
To simplify the currency denominations of Merrill Lynch Global
Allocation Fund, Inc.'s portfolio holdings in the Schedule of
Investments, we have abbreviated the currencies according to the
list at right.
ARS Argentinean Peso
CAD Canadian Dollar
CHF Swiss Franc
EUR Euro Dollar
GBP Great Britain Pound
IDR Indonesian Rupiah
JPY Japanese Yen
NOK Norwegian Krone
NZD New Zealand Dollar
SEK Swedish Kroner
USD United States Dollar
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Argentina Banking 467,900 Banco Frances SA (ADR)++(USD) $ 11,254,989 $ 12,048,425 0.1%
2,433,900 Banco Rio de la Plata SA
(ADR)++(USD) 25,177,689 31,488,581 0.4
--------------- --------------- ------
36,432,678 43,537,006 0.5
Government 11,000 Republic of Argentina (Warrants)(a) 300,300 33,000 0.0
Obligations
Oil--Related 480,000 YPF Sociedad Anonima (ADR)++(USD) 10,296,490 20,160,000 0.3
Total Common Stocks in Argentina 47,029,468 63,730,006 0.8
Australia Building Materials 718,547 Pioneer International Limited 1,814,681 1,756,313 0.0
Foods 5,566,000 Goodman Fielder Limited 5,875,419 5,382,901 0.1
Insurance 7,063,044 HIH Insurance Limited 11,341,178 9,076,407 0.1
8,764,000 HIH Insurance Limited (Installment
Receipts)(k) 8,334,519 5,340,852 0.1
--------------- --------------- ------
19,675,697 14,417,259 0.2
Metals & Mining 10,000,000 Normandy Mining Limited 8,030,489 8,677,440 0.1
25,900,927 Pasminco Limited 25,771,262 28,994,948 0.4
8,700,000 WMC Limited 29,191,616 37,631,606 0.5
--------------- --------------- ------
62,993,367 75,303,994 1.0
Multi-Industry 2,160,000 Lend Lease Corporation Limited 17,989,574 29,149,362 0.4
2,300,000 Pacific Dunlop Limited 5,753,464 4,037,328 0.0
--------------- --------------- ------
23,743,038 33,186,690 0.4
Resources 9,309,046 Broken Hill Proprietary Company
Limited 101,391,675 105,345,275 1.3
Total Common Stocks in Australia 215,493,877 235,392,432 3.0
Austria Banking 203,400 Bank Austria AG 6,298,337 12,639,004 0.2
Total Common Stocks in Austria 6,298,337 12,639,004 0.2
Brazil Telecommunications 460,000 Telecomunicacoes Brasileiras SA
--Telebras (ADR)++(USD) 32,419 35,938 0.0
460,000 Telecomunicacoes Brasileiras SA
--Telebras (Preferred Block)
(ADR)++(USD) 31,580,340 41,946,250 0.5
Total Common Stocks in Brazil 31,612,759 41,982,188 0.5
Canada Beverages 1,900,000 Cott Corporation (USD) 15,484,918 6,650,000 0.1
Metals--Non-Ferrous 1,300,000 Inco Limited (USD) 26,901,062 24,943,750 0.3
Retail Stores 400,000 Hudson's Bay Company 4,015,205 4,368,132 0.0
Telecommunications 1,165,200 Rogers Cantel Mobile Communications
Inc. `B' (n)(p) 22,391,633 20,607,074 0.3
1,260,900 Rogers Cantel Mobile Communications
Inc. `B' (USD)(n)(p) 20,941,379 22,144,556 0.3
150,000 Rogers Communications, Inc. `B' (p) 984,750 2,812,500 0.0
--------------- --------------- ------
44,317,762 45,564,130 0.6
Total Common Stocks in Canada 90,718,947 81,526,012 1.0
Finland Metals 733,238 Outokumpu Oyj 10,766,607 8,420,241 0.1
Paper & Forest 2,909,250 Metsa-Serla Oyj `B' 23,657,400 24,941,117 0.3
Products 449,845 Stora Enso Oyj `A' 3,506,504 5,142,052 0.1
117,480 Stora Enso Oyj `R' 903,581 1,373,966 0.0
203,868 UPM-Kymmene Oyj 4,035,251 6,181,922 0.1
--------------- --------------- ------
32,102,736 37,639,057 0.5
Total Common Stocks in Finland 42,869,343 46,059,298 0.6
France Automobiles 46,568 PSA Peugeot Citroen 5,610,594 7,738,149 0.1
Banking 107,555 Banque Nationale de Paris (BNP) 4,755,027 8,930,451 0.1
139,209 Compagnie Financiere de Paribas
(CFP) 7,568,090 14,822,284 0.2
49,069 Societe Generale `A' 5,108,866 8,797,726 0.1
--------------- --------------- ------
17,431,983 32,550,461 0.4
Energy & Petroleum 75,499 Elf Aquitaine SA 9,962,370 11,746,497 0.2
Industrial 244,500 Alcatel (ADR)++(USD) 4,208,043 5,944,406 0.1
Insurance 277,598 CNP Assurances 7,729,298 6,963,290 0.1
Metals--Steel 1,025,585 Usinor SA 15,027,164 15,891,415 0.2
Multi-Industry 49,657 Societe Eurafrance SA 19,457,147 25,017,117 0.3
Total Common Stocks in France 79,426,599 105,851,335 1.4
Germany Automotive 9,447 Bayerische Motoren Werke (BMW) AG 6,499,510 6,779,122 0.1
253,686 Volkswagen AG 14,947,855 18,016,435 0.2
--------------- --------------- ------
21,447,365 24,795,557 0.3
Banking 263,857 Deutsche Bank AG 21,925,956 15,359,644 0.2
132,450 Dresdner Bank AG 7,678,657 5,719,551 0.1
164,480 HypoVereinsbank 8,617,726 10,741,083 0.1
--------------- --------------- ------
38,222,339 31,820,278 0.4
Capital Goods 369,636 Kloeckner-Werke AG (p) 17,229,762 26,133,679 0.3
Chemicals 377,381 Bayer AG 15,239,702 16,056,686 0.2
101,451 Henkel KGaA 4,390,556 6,979,423 0.1
407,625 Hoechst AG 15,601,029 19,349,649 0.2
--------------- --------------- ------
35,231,287 42,385,758 0.5
Electrical Equipment 172,042 Siemens AG 11,227,665 12,746,248 0.2
Engineering & 32,565 Philipp Holzmann AG (p) 12,268,030 5,273,420 0.1
Construction
Metals--Steel 1,337,260 Thyssen Krupp AG (p) 29,944,502 29,297,869 0.4
Utilities 385,848 Veba AG 25,707,381 21,195,001 0.3
Total Common Stocks in Germany 191,278,331 193,647,810 2.5
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Hong Kong Banking 799,737 HSBC Holdings PLC $ 13,806,500 $ 29,719,259 0.4%
Multi-Industry 7,059,500 Hutchison Whampoa Limited 44,936,689 63,307,774 0.8
Total Common Stocks in Hong Kong 58,743,189 93,027,033 1.2
Hungary Oil & Gas Producers 232,571 MOL Magyar Olaj-es Gazipari
Rt. (GDR)++++(USD) 6,283,087 5,232,848 0.1
Total Common Stocks in Hungary 6,283,087 5,232,848 0.1
Indonesia Paper & Pulp 1,500,000 Asia Pacific Resources
International Holdings Ltd. `A' 5,392,046 1,312,500 0.0
553,765 Asia Pulp & Paper Company Ltd.
(ADR)++(USD) 6,368,298 5,814,533 0.1
--------------- --------------- ------
11,760,344 7,127,033 0.1
Tobacco 19,327,000 PT Hanjaya Mandala Sampoerna Tbk (p) 28,087,780 26,906,451 0.3
Total Common Stocks in Indonesia 39,848,124 34,033,484 0.4
Italy Multi-Industry 30,971,990 MontEdison SpA 23,376,406 29,764,925 0.4
Telecommunications 6,511,641 Telecom Italia SpA 27,017,500 35,079,877 0.4
Total Common Stocks in Italy 50,393,906 64,844,802 0.8
Japan Automobiles & 3,282,000 Suzuki Motor Corporation 30,510,247 46,787,421 0.6
Equipment
Beverages 1,570,000 Chukyo Coca-Cola Bottling Co., Ltd. 16,445,371 18,102,725 0.3
663,000 Hokkaido Coca-Cola Bottling Co., Ltd. 8,836,164 7,505,660 0.1
691,000 Kinki Coca-Cola Bottling Co., Ltd. 10,472,103 9,850,734 0.1
1,143,000 Mikuni Coca-Cola Bottling 15,815,229 23,962,264 0.3
1,051,000 Sanyo Coca-Cola Bottling Co., Ltd. 13,001,553 24,941,971 0.3
--------------- --------------- ------
64,570,420 84,363,354 1.1
Capital Goods 12,900,000 Kawasaki Heavy Industries Ltd. 35,297,925 32,561,006 0.4
7,875,000 Mitsubishi Heavy Industries, Ltd. 44,268,610 34,537,736 0.4
--------------- --------------- ------
79,566,535 67,098,742 0.8
Chemicals 34,000 Shin-Etsu Chemical Co., Ltd. 657,132 1,083,438 0.0
Consumer Products 31,250 Amway Japan Ltd. 724,875 314,465 0.0
Electrical 1,157,720 Chudenko Corporation 30,032,358 22,814,608 0.3
Construction 1,386,000 Kinden Corporation 21,348,708 17,689,660 0.2
--------------- --------------- ------
51,381,066 40,504,268 0.5
Electrical Equipment 788,000 Murata Manufacturing Co., Ltd. 25,168,052 45,132,411 0.6
Electronics 1,299,000 Hitachi Ltd. 9,381,584 9,498,767 0.1
Financial Services 9,387,000 Daiwa Securities Co. Ltd. 46,956,803 57,463,396 0.7
879,000 The Nomura Securities Co., Ltd. 11,893,928 9,493,937 0.1
1,720,000 Wako Securities Co., Ltd. (p) 4,377,152 4,500,126 0.1
--------------- --------------- ------
63,227,883 71,457,459 0.9
Industrial 28,000 Miura Co., Ltd. 466,635 394,465 0.0
Insurance 743,000 The Chiyoda Fire & Marine Insurance
Company, Limited 2,796,009 2,654,239 0.0
2,897,000 The Dai-Tokyo Fire and Marine
Insurance Co., Ltd. 17,990,037 10,616,260 0.1
125,000 The Dowa Fire & Marine Insurance
Co., Ltd. 441,340 471,698 0.0
3,743,000 The Fuji Fire and Marine Insurance
Company, Limited 13,980,452 7,564,470 0.1
4,865,000 The Koa Fire & Marine Insurance
Co., Ltd. 24,748,402 15,298,742 0.2
765,000 Mitsui Marine and Fire Insurance
Company, Ltd. 5,730,161 4,246,792 0.1
3,508,000 The Nichido Fire & Marine Insurance
Co., Ltd. 20,622,267 20,150,776 0.3
4,816,000 The Nippon Fire & Marine Insurance
Co., Ltd. 20,479,413 16,073,526 0.2
999,000 The Nisshin Fire and Marine
Insurance Company, Limited 2,688,731 2,848,302 0.0
7,315,000 The Sumitomo Marine & Fire Insurance
Co., Ltd. 46,067,731 49,686,792 0.6
2,713,000 The Tokio Marine & Fire Insurance
Co. Ltd. 28,580,732 31,645,979 0.4
5,000,000 The Yasuda Fire & Marine Insurance
Co. Ltd. 25,976,040 27,756,813 0.4
--------------- --------------- ------
210,101,315 189,014,389 2.4
Office Equipment 1,612,000 Canon, Inc. 23,455,745 39,472,034 0.5
Packaging & 1,103,000 Toyo Seikan Kaisha, Ltd. 25,118,395 22,476,226 0.3
Containers
Pharmaceuticals 1,261,000 Sankyo Company, Ltd. 28,124,373 26,488,931 0.3
384,000 Taisho Pharmaceutical Company, Ltd. 7,984,458 11,817,862 0.2
--------------- --------------- ------
36,108,831 38,306,793 0.5
Restaurants 647,000 Mos Food Service, Inc. 12,121,005 8,295,707 0.1
618,000 Ohsho Food Service 10,180,663 8,214,088 0.1
--------------- --------------- ------
22,301,668 16,509,795 0.2
Retail Stores 460,000 Ito-Yokado Co., Ltd. 21,319,319 28,275,052 0.4
100,000 Sangetsu Co., Ltd. 3,160,832 1,840,671 0.0
--------------- --------------- ------
24,480,151 30,115,723 0.4
Total Common Stocks in Japan 667,220,534 702,529,750 8.9
Mexico Foods 700,000 Grupo Industrial Maseca SA de
CV (ADR)++(USD) 7,969,925 7,393,750 0.1
Multi-Industry 433,800 Grupo Carso SA de CV (ADR)++(USD) 3,832,850 4,077,720 0.0
Telecommunications 433,800 Carso Global Telecom (ADR)++(USD) 2,060,550 4,298,958 0.1
Total Common Stocks in Mexico 13,863,325 15,770,428 0.2
Netherlands Chemicals 439,904 Akzo Nobel NV 13,723,599 19,904,160 0.3
225,570 European Vinyls Corporation
International NV 8,625,195 2,220,313 0.0
--------------- --------------- ------
22,348,794 22,124,473 0.3
Electronics 108,750 Koninklijke (Royal) Philips
Distribution Electronics NV 6,243,388 9,380,732 0.1
Insurance 321,530 ING Groep NV 5,483,987 19,839,919 0.3
Packaging 1,459,566 Buhrmann NV 30,706,655 26,802,361 0.3
Real Estate 3,723,920 Security Capital U.S. Realty (USD) 33,076,509 31,653,320 0.4
Steel 161,800 Ispat International NV 4,382,262 1,798,116 0.0
799,183 Ispat International NV (NY
Registered Shares)(USD) 13,831,820 10,439,328 0.1
--------------- --------------- ------
18,214,082 12,237,444 0.1
Total Common Stocks in the
Netherlands 116,073,415 122,038,249 1.5
New Natural Gas 1,227,104 Natural Gas Corporation Holdings
Zealand Suppliers Limited 867,270 1,091,248 0.0
Total Common Stocks in New Zealand 867,270 1,091,248 0.0
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
Norway Banking 4,785,400 Christiania Bank Og Kreditkasse $ 10,697,335 $ 18,436,111 0.2%
2,434,000 Den Norske Bank ASA 7,189,721 8,814,537 0.1
--------------- --------------- ------
17,887,056 27,250,648 0.3
Computer Software 668,518 Merkantildata ASA 8,071,807 6,696,341 0.1
Oil & Gas Producers 781,330 Saga Petroleum ASA (p) 11,845,630 8,679,215 0.1
Total Common Stocks in Norway 37,804,493 42,626,204 0.5
Philippines Multi-Industry 6,335,520 Ayala Corporation 1,948,253 2,298,507 0.0
Total Common Stocks in the
Philippines 1,948,253 2,298,507 0.0
Portugal Banking 644,372 Banco Comercial Portugues, SA
(BCP) (Registered Shares) 9,667,811 18,202,669 0.2
Banking--International 50 Banco Portugues do Atlantico
(BPA) (p) 1,244 806 0.0
Total Common Stocks in Portugal 9,669,055 18,203,475 0.2
Russia Telecommunications 1,611,800 PLD Telekom Inc. (p)(USD) 10,028,238 4,130,238 0.1
74,500 PLD Telekom Inc. (Warrants)(a)(USD) 0 7,450 0.0
93,200 PLD Telekom Inc. (Warrants)(a)(USD) 142,605 4,660 0.0
Total Common Stocks in Russia 10,170,843 4,142,348 0.1
South Metals--Steel 716,660 Pohang Iron & Steel Company Ltd. 28,695,627 61,573,642 0.8
Korea
Telecommunications 1,533 SK Telecom Co. Ltd. 522,992 1,669,138 0.0
1,166,925 SK Telecom Co. Ltd. (ADR)++(USD)(q) 5,726,464 16,191,079 0.2
--------------- --------------- ------
6,249,456 17,860,217 0.2
Total Common Stocks in South Korea 34,945,083 79,433,859 1.0
Spain Insurance 66,778 Corporacion Mapfre 1,272,758 1,360,548 0.0
Total Common Stocks in Spain 1,272,758 1,360,548 0.0
Sweden Appliances 937,679 Electrolux AB `B' 10,152,244 19,053,307 0.3
Automobiles & 43,916 Scania AB (Warrants)(a) 60,444 56,359 0.0
Equipment 391,430 Volvo AB `B' 12,386,419 10,349,138 0.1
--------------- --------------- ------
12,446,863 10,405,497 0.1
Insurance 1,022,258 Skandia Forsakrings AB 7,716,720 19,800,137 0.3
Metals--Steel 901,522 Avesta Sheffield AB 7,672,265 3,877,975 0.0
Multi-Industry 192,784 Svedala Industri AB 2,531,671 3,390,414 0.0
Paper & Forest 411,853 Mo och Domsjo AB (MoDo) 'B' 10,072,522 10,619,940 0.2
Products
Total Common Stocks in Sweden 50,592,285 67,147,270 0.9
Switzerland Banking 20,222 Banque Cantonale de Geneve (BCG) 6,737,471 3,985,416 0.1
89,227 Credit Suisse Group (Registered
Shares) 10,117,486 17,731,683 0.2
--------------- --------------- ------
16,854,957 21,717,099 0.3
Banking & Financial 51,616 UBS AG 10,538,909 17,564,767 0.2
Pharmaceuticals 3,751 Novartis AG (Registered Shares) 5,535,436 5,502,551 0.1
Total Common Stocks in Switzerland 32,929,302 44,784,417 0.6
Thailand Holding Companies 1,373,300 BEC World Public Company
Limited `Foreign' 8,876,272 7,257,126 0.1
Total Common Stocks in Thailand 8,876,272 7,257,126 0.1
United Banking 226,531 Barclays PLC 3,483,493 7,199,472 0.1
Kingdom 400,115 National Westminster Bank PLC 7,365,876 9,643,452 0.1
--------------- --------------- ------
10,849,369 16,842,924 0.2
Building & 325,351 Jarvis PLC 3,797,606 2,718,600 0.0
Construction
Food & Beverage 1,256,839 Allied Domecq PLC 9,162,332 9,834,262 0.1
672,142 Bass PLC 9,822,359 10,572,592 0.2
--------------- --------------- ------
18,984,691 20,406,854 0.3
Holding Companies 1,983,337 BTR Siebe PLC 12,998,334 10,130,340 0.2
Insurance 620,845 CGU PLC 8,676,880 9,810,686 0.1
1,895,554 Royal & Sun Alliance Insurance
Group PLC 18,609,690 16,357,873 0.2
--------------- --------------- ------
27,286,570 26,168,559 0.3
Retail--Food 1,610,493 Safeway PLC 9,038,358 6,709,113 0.1
Retail Stores 301,675 Signet Group PLC (ADR)++(USD) 461,861 8,635,447 0.1
Steel 3,909,076 British Steel PLC 9,053,760 9,298,812 0.1
Telecommunications 568,677 Cable & Wireless PLC 4,292,301 8,166,884 0.1
Total Common Stocks in the
United Kingdom 96,762,850 109,077,533 1.4
United Apparel 700,000 Fruit of the Loom, Inc. (Class A) (p) 18,572,062 7,481,250 0.1
States
Banking 195,100 Banco Santander Puerto Rico 4,194,650 3,828,837 0.0
230,000 Bank One Corporation 3,931,751 13,570,000 0.2
259,000 Banknorth Group, Inc. 1,865,422 6,847,313 0.1
2,000,000 East West Bancorp, Inc. 20,000,000 19,750,000 0.3
2,480,939 Golden State Bancorp Inc. (p) 24,764,230 60,938,064 0.8
2,940,239 Golden State Bancorp Inc.
"Litigation Tracking" (Warrants)(a) 5,633,533 5,421,066 0.1
770,194 Golden State Bancorp Inc. (Warrants)(a) 0 11,215,950 0.1
1,300,000 KeyCorp 19,092,327 40,218,750 0.5
600,000 Mellon Bank Corporation 12,346,598 44,587,500 0.6
1,350,000 Republic New York Corporation 30,180,613 79,312,500 1.0
--------------- --------------- ------
122,009,124 285,689,980 3.7
Building Products 500,000 Chicago Bridge & Iron Company NV
(NY Registered Shares) 8,322,525 6,062,500 0.1
567,892 Flowserve Corporation 14,089,137 10,576,989 0.1
--------------- --------------- ------
22,411,662 16,639,489 0.2
Business Data 621,500 Imation Corp. (p) 9,905,939 10,992,781 0.1
Processing
Business Data 1,800,000 Information Resources, Inc. (n)(p) 17,211,940 13,950,000 0.2
Systems
Coal 915,000 CONSOL Energy Inc. (p) 14,529,640 13,038,750 0.2
Commercial Services 780,000 Cendant Corporation (p) 10,944,281 14,040,000 0.2
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Computer Software 1,150,000 FileNET Corporation (p) $ 5,253,926 $ 9,846,875 0.1%
States 300,000 Hyperion Solutions Corporation (p) 5,400,575 4,537,500 0.1
(continued) 2,400,000 Inprise Corporation (n)(p) 33,535,053 9,675,000 0.1
300,000 PLATINUM technology Inter-
national, Inc. (p) 3,985,707 7,650,000 0.1
--------------- --------------- ------
48,175,261 31,709,375 0.4
Computers & 300,000 Compaq Computer Corporation 9,902,490 6,693,750 0.1
Technology 2,000,000 Iomega Corporation (p) 10,010,893 9,750,000 0.1
750,000 Komag, Incorporated (p) 12,619,584 2,765,625 0.0
1,100,000 Silicon Graphics, Inc. (p) 16,560,378 14,025,000 0.2
--------------- --------------- ------
49,093,345 33,234,375 0.4
Construction & 200,000 Hovnanian Enterprises, Inc.
Housing (Class A) (p) 1,750,602 1,675,000 0.0
Construction 465,000 TJ International, Inc. 8,228,176 12,787,500 0.2
Products
Electronics 1,500,000 CHS Electronics, Inc. (p) 9,217,891 7,593,750 0.1
2,300,000 Cabletron Systems, Inc. (p) 34,233,860 21,706,250 0.3
1,900,100 Checkpoint Systems, Inc. (n)(p) 21,012,711 18,644,731 0.2
1,000,000 MEMC Electronic Materials, Inc. (p) 18,838,743 6,000,000 0.1
1,020,000 Millipore Corporation 27,923,143 31,301,250 0.4
1,600,000 Silicon Valley Group, Inc. (p) 26,097,882 21,000,000 0.2
300,000 Tektronix, Inc. 4,695,623 7,275,000 0.1
--------------- --------------- ------
142,019,853 113,520,981 1.4
Energy & 1,079,400 Arch Coal, Inc. 28,887,320 13,087,725 0.2
Petroleum 46,400 Mitchell Energy & Development
Corp. (Class A) 675,716 698,900 0.0
174,350 Mitchell Energy & Development
Corp. (Class B) 2,755,451 2,680,631 0.0
50,000 Murphy Oil Corporation 1,688,446 2,346,875 0.0
1,500,000 Occidental Petroleum Corporation 28,058,743 30,281,250 0.4
1,402,978 Santa Fe Energy Resources, Inc. (p) 7,579,573 12,626,802 0.2
550,000 USX-Marathon Group 10,388,695 17,187,500 0.2
--------------- --------------- ------
80,033,944 78,909,683 1.0
Financial 163,600 American Capital Strategies, Ltd. 2,454,000 2,873,225 0.0
Services 1,972,900 Anthracite Capital, Inc. (n) 29,662,250 14,920,056 0.2
--------------- --------------- ------
32,116,250 17,793,281 0.2
Forest Products 350,000 Deltic Timber Corporation 9,959,709 9,712,500 0.1
Funeral Services 200,000 Service Corporation International 2,843,937 4,150,000 0.1
Gaming 1,235,000 Scientific Games Holdings Corp. (n)(p) 27,568,304 19,760,000 0.3
Healthcare 300,000 Advocat, Inc. (n)(p) 2,852,500 543,750 0.0
Services 2,110,400 Beverly Enterprises, Inc. (p) 15,824,755 13,717,600 0.2
2,100,000 Humana Inc. (p) 32,795,915 28,612,500 0.4
137,577 LTC Healthcare Inc. (p) 619,051 257,957 0.0
1,700,000 Oxford Health Plans, Inc. (p) 33,123,011 33,893,750 0.4
1,091,600 Sierra Health Services, Inc. (p) 15,709,764 13,645,000 0.2
350,000 United HealthCare Corporation 11,247,018 19,643,750 0.2
--------------- --------------- ------
112,172,014 110,314,307 1.4
Industrial 15,000 Bar Technologies Ltd. (Warrants)
(a)(q) 838,256 825,000 0.0
Information 380,000 Billing Concepts Corp. (p) 3,610,000 4,702,500 0.1
Processing
Insurance 2,100,000 AGCO Corporation 14,878,890 20,737,500 0.3
186,300 Horace Mann Educators Corporation 2,143,166 4,238,325 0.0
1,947,500 Risk Capital Holdings, Inc. (n)(p) 34,313,406 27,751,875 0.4
--------------- --------------- ------
51,335,462 52,727,700 0.7
Machinery 680,000 Weatherford International, Inc. (p) 12,282,389 23,035,000 0.3
Metals & Mining 180,000 Alcoa Inc. 5,176,249 11,205,000 0.1
1,400,000 Battle Mountain Gold Company (p) 8,838,297 3,937,500 0.0
807,300 Commonwealth Industries, Inc. (n) 12,346,767 7,669,350 0.1
850,000 Newmont Mining Corporation 31,553,907 20,453,125 0.3
360,000 Nucor Corporation 16,570,017 21,127,500 0.3
800,000 The Timken Company 13,791,134 17,850,000 0.2
--------------- --------------- ------
88,276,371 82,242,475 1.0
Metals--Steel 678,700 Worthington Industries, Inc. 8,025,202 9,374,544 0.1
Multi-Industry 90,000 Loews Corporation 3,984,675 6,586,875 0.1
Natural 210,519 Freeport-McMoRan Copper & Gold,
Resources Inc. (Class B)(p) 3,665,657 3,223,572 0.0
Oil & Gas 900,000 Rowan Companies. Inc. (p) 12,395,215 14,400,000 0.2
Producers 600,000 Tom Brown, Inc. (p) 10,596,357 8,925,000 0.1
300,000 Transocean Offshore Inc. 9,669,913 8,906,250 0.1
--------------- --------------- ------
32,661,485 32,231,250 0.4
Oil Field Equipment 201,900 Veritas DGC Inc. (p) 2,715,091 4,088,475 0.1
Oil Services 200,000 Diamond Offshore Drilling, Inc. 5,150,000 6,612,500 0.1
2,600,000 Input/Output, Inc. (n)(p) 23,522,630 18,850,000 0.2
2,780,000 Noble Drilling Corporation (p) 20,861,045 54,557,500 0.7
230,000 Schlumberger Limited 12,731,500 14,691,250 0.2
300,000 Tidewater Inc. 13,101,460 7,950,000 0.1
--------------- --------------- ------
75,366,635 102,661,250 1.3
Paper 160,200 Boise Cascade Corporation 4,225,000 6,448,050 0.1
150,000 Fort James Corporation 2,810,677 5,700,000 0.1
220,000 Louisiana-Pacific Corporation 4,820,569 4,578,750 0.0
--------------- --------------- ------
11,856,246 16,726,800 0.2
Pollution Control 500,000 Safety Kleen Corp. (p) 5,574,398 7,937,500 0.1
Real Estate 2,574,465 Catellus Development Corporation (p) 22,351,219 39,582,399 0.5
3,633,600 Security Capital Group
Incorporated (Class B)(n)(p) 78,475,062 54,958,200 0.7
700,000 United Dominion Realty
Trust, Inc. 8,011,873 7,612,500 0.1
--------------- --------------- ------
108,838,154 102,153,099 1.3
Real Estate 1,638,300 AMB Property Corporation 35,614,536 36,042,600 0.5
Investment Trusts 382,713 Apartment Investment & Management
Company (Class A) 10,124,521 15,332,440 0.2
300,000 Avalonbay Communities, Inc. 9,440,618 10,500,000 0.1
100,000 CarrAmerica Realty Corporation 2,260,999 2,475,000 0.0
455,000 Equity Office Properties Trust 11,602,500 12,540,938 0.2
250,000 Equity Residential Properties Trust 10,093,750 11,562,500 0.1
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Common Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Real Estate 500,000 Federal Realty Investment Trust $ 10,135,000 $ 11,937,500 0.2%
States Investment 91,991 Horizon Group Properties, Inc. (p) 551,946 304,720 0.0
(concluded) Trusts 3,042,500 Imperial Credit Commercial
(concluded) Mortgage Investment Corp. (n) 42,303,825 29,474,219 0.4
3,500,000 Meditrust Companies 68,742,755 43,531,250 0.6
63,400 National Health Investors, Inc. 1,621,138 1,592,925 0.0
1,524,400 Nationwide Health Properties, Inc. 30,413,253 30,964,375 0.4
2,039,825 Prime Retail, Inc. 17,735,914 17,593,491 0.2
400,000 Simon Property Group, Inc. 10,004,000 11,475,000 0.1
400,000 Taubman Centers, Inc. 3,170,761 5,425,000 0.1
920,000 Walden Residential Properties,
Inc. (Warrants)(a) 1,125,068 920,000 0.0
--------------- --------------- ------
264,940,584 241,671,958 3.1
Retail 800,000 Heilig-Meyers Company 10,547,099 4,700,000 0.1
Retail--Automotive 900,000 Ugly Duckling Corporation (n)(p) 11,585,625 5,850,000 0.1
Retail Stores 1,110,000 Filene's Basement Corporation (n)(p) 10,092,619 2,185,313 0.0
300,000 J. Baker, Inc. 5,134,145 1,762,500 0.0
700,000 Toys `R' Us, Inc. (p) 15,851,134 15,225,000 0.2
--------------- --------------- ------
31,077,898 19,172,813 0.2
Savings Banks 205,600 Capitol Federal Financial 1,882,874 1,966,050 0.0
Semiconductors 2,497,000 Cypress Semiconductor Corporation (p) 19,708,169 25,594,250 0.3
Telecommuni- 300,000 Allen Telecom Inc. (p) 3,338,218 2,812,500 0.0
cations 200,000 CellNet Data Systems, Inc. (p) 1,506,687 1,550,000 0.0
120,363 CellNet Data Systems, Inc.
(Warrants)(a)(q) 13,716,570 722,178 0.0
2,770,200 General Communication, Inc.
(Class A)(n)(p) 18,631,175 12,812,175 0.2
2,500,000 Glenayre Technologies, Inc. (p) 25,609,813 8,281,250 0.1
60,000 Leap Wireless International,
Inc. (p) 285,000 1,095,000 0.0
470,000 QUALCOMM Incorporated (p) 23,259,096 93,706,250 1.2
47,000 United USN Inc. (Class A)(Warrants)
(a)(q) 5,840,131 470 0.0
14,113 United USN Inc. (Warrants)(a)(q) 1,084,937 141 0.0
18,315 Wireless One, Inc. (Warrants)(a) 18,315 183 0.0
--------------- --------------- ------
93,289,942 120,980,147 1.5
Textiles 2,600,000 Burlington Industries, Inc. (p) 34,175,185 21,125,000 0.3
Tobacco 1,875,700 DIMON Incorporated 29,253,130 8,206,188 0.1
Transportation 400,000 J.B. Hunt Transport Services, Inc. 6,933,618 8,300,000 0.1
410,000 Union Pacific Corporation 17,639,754 24,600,000 0.3
--------------- --------------- ------
24,573,372 32,900,000 0.4
Utilities-- 47,570 BayCorp Holdings, Ltd. (p) 2,549,753 160,549 0.0
Electric & Gas 4,105,623 Citizens Utilities Company
(Class B)(p) 35,740,872 41,312,831 0.5
4,037,285 El Paso Electric Company (n)(p) 21,195,746 32,298,280 0.4
1,590,000 Entergy Corporation 42,223,912 49,687,500 0.6
1,500,000 Niagara Mohawk Holdings Inc. (p) 23,789,306 20,062,500 0.3
900,000 Potomac Electric Power Company 21,109,678 26,325,000 0.3
1,127,900 Reliant Energy, Inc. 22,955,631 31,933,669 0.4
523,800 Unicom Corporation 12,074,658 20,329,988 0.3
--------------- --------------- ------
181,639,556 222,110,317 2.8
Total Common Stocks in the
United States 1,841,249,498 1,948,192,015 24.8
Total Investments in Common
Stocks 3,784,241,203 4,143,919,229 52.7
Equity Closed-End Funds
Austria Financial Services 320,000 The Austria Fund (USD) 2,642,432 3,260,000 0.1
Total Equity Closed-End Funds
in Austria 2,642,432 3,260,000 0.1
Indonesia Financial Services 25,600 Jakarta Growth Fund (USD) 158,080 91,200 0.0
Total Equity Closed-End Funds
in Indonesia 158,080 91,200 0.0
Ireland Financial Services 150,000 Irish Investment Fund (USD) 1,086,041 2,718,750 0.0
Total Equity Closed-End Funds
in Ireland 1,086,041 2,718,750 0.0
Italy Financial Services 150,000 Italy Fund (USD) 1,198,520 2,250,000 0.0
Total Equity Closed-End Funds
in Italy 1,198,520 2,250,000 0.0
South Financial Services 81,262 Fidelity Advisor Korea Fund (USD)(p) 708,885 660,254 0.0
Korea 200,000 Korea Equity Fund (USD)(p) 1,369,598 887,500 0.0
1,400,528 Korea Fund (USD)(p) 19,847,163 17,506,600 0.3
200,000 Korean Investment Fund (USD)(p) 1,561,000 1,212,500 0.0
Total Equity Closed-End Funds in
South Korea 23,486,646 20,266,854 0.3
Total Investments in Equity
Closed-End Funds 28,571,719 28,586,804 0.4
Preferred Stocks
Germany Chemicals 138,305 Henkel KGaA 5,886,677 10,964,013 0.1
Machinery & 157,130 Jungheinrich AG 3,186,845 2,319,974 0.0
Equipment
Medical Equipment 23,235 Fresenius AG 4,591,809 4,057,667 0.1
Multi-Industry 450,000 RWE AG 8,725,424 13,669,236 0.2
Total Preferred Stocks in Germany 22,390,755 31,010,890 0.4
Portugal Banking 181,400 BCP International Bank (8%
Convertible)(USD) 13,480,528 19,047,000 0.2
Total Preferred Stocks in Portugal 13,480,528 19,047,000 0.2
Spain Banking 31,800 Santander Overseas Bank (8%
Convertible, Series D) (USD) 773,376 810,900 0.0
Total Preferred Stocks in Spain 773,376 810,900 0.0
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Value Percent of
COUNTRY Industries Held Preferred Stocks Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C> <C>
United Cable Television 1,000,000 Diva Systems Corp. (Convertible,
States Series C)(o) $ 8,410,000 $ 5,000,000 0.1%
1,000,000 Diva Systems Corp. (Convertible,
Series D)(q) 11,440,000 5,000,000 0.1
--------------- --------------- ------
19,850,000 10,000,000 0.2
Natural Resources 150,000 Cyprus Amax Minerals Co.
(Convertible, Series A) 9,188,313 6,637,500 0.1
Freeport-McMoRan Copper & Gold Inc.:
219,000 (3.50% Convertible--Gold, Series B) 7,703,330 3,750,375 0.0
348,700 (5% Convertible, Series A) 7,918,834 6,145,838 0.1
24,810,477 16,533,713 0.2
Publishing 100,000 Reader's Digest Association, Inc.
(Trust Automatic Common Exchange
Securities)(Convertible) 2,343,750 3,300,000 0.0
Railroads 40,000 Union Pacific Capital Trust (6.25%
Convertible) 1,793,600 2,125,000 0.0
Real Estate 476,800 Apartment Investment & Management
Investment Trusts Co. (9.375%, Series G) 11,751,900 11,324,000 0.2
298,746 Bradley Real Estate Inc. (8.40%
Convertible, Series A) 6,471,276 6,964,516 0.1
97,300 CarrAmerica Realty Corporation (8.55%,
Series C) 2,398,445 2,219,656 0.0
400,000 Crown American Realty Trust (11%,
Series A) 17,800,000 18,700,000 0.2
139,200 First Union (8.40% Convertible,
Series A) 3,480,000 2,992,800 0.0
350,000 National Health Investors, Inc.
(8.50% Convertible) 8,750,000 7,962,500 0.1
717,500 Prime Retail, Inc. (10.50%) 16,366,161 13,991,250 0.2
Walden Residential Properties, Inc.:
50,000 (9.16% Convertible, Series B) 1,418,750 1,087,500 0.0
1,078,000 (9.20% Convertible, Series S) 26,269,636 21,560,000 0.3
--------------- --------------- ------
94,706,168 86,802,222 1.1
Utilities 77,600 Citizens Utilities Trust (5%
Convertible) 3,398,931 3,492,000 0.1
Total Preferred Stocks in the
United States 146,902,926 122,252,935 1.6
Total Investments in Preferred
Stocks 183,547,585 173,121,725 2.2
Currency Face
Denomination Amount Fixed-Income Securities
Argentina Banking USD 45,000,000 Banco Rio de la Plata, 8.75% due
12/15/2003 36,900,950 44,052,939 0.5
Food/Dairy USD 23,500,000 Mastellone Hermanos SA, 11.75%
Products due 4/01/2008 23,687,500 21,150,000 0.3
Government City of Buenos Aires:
Obligations ARS 36,550,000 10.50% due 5/28/2004 31,996,453 32,817,408 0.4
USD 38,000,000 11.25% due 4/11/2007 (q) 37,715,000 36,480,000 0.4
USD 14,229,000 11.25% due 4/11/2007 (Regulation S) 13,888,779 13,659,840 0.2
Republic of Argentina:
USD 112,204,500 6.188% due 3/31/2005 (d)(l)(m) 83,648,861 99,862,005 1.3
USD 85,000,000 11.375% due 1/30/2017 82,988,125 84,787,500 1.1
USD 162,150,000 9.75% due 9/19/2027 121,322,855 141,475,875 1.8
USD 80,000,000 Series L, 6.438% due 3/31/2023
(d)(l) 55,210,316 60,300,000 0.8
--------------- --------------- ------
426,770,389 469,382,628 6.0
Total Fixed-Income Securities
in Argentina 487,358,839 534,585,567 6.8
Brazil Banking Banco Nacional de Desenvolvimiento
Economico e Social:
USD 7,500,000 9% due 9/24/2007 6,675,000 6,225,000 0.1
USD 68,500,000 15.224% due 6/16/2008 (d) 45,061,562 60,280,000 0.7
--------------- --------------- ------
51,736,562 66,505,000 0.8
Government Republic of Brazil (l):
Obligations USD 33,833,380 Exit Bonds, 6% due 9/15/2013 19,620,085 21,991,697 0.3
USD 10,000,000 Par `L' Bonds, 5.75% due
4/15/2024 (d) 6,100,000 6,337,500 0.1
--------------- --------------- ------
25,720,085 28,329,197 0.4
Industrial USD 4,750,000 Companhia Vale Do Rio Doce, 10%
due 4/02/2004 4,132,500 4,655,000 0.1
USD 13,000,000 Globo Comunicacoes e Participacoes,
Ltd., 10.625% due 12/05/2008 (q) 12,954,500 10,400,000 0.1
17,087,000 15,055,000 0.2
Utilities USD 32,250,000 Espirito Santo-Escelsa, 10% due
7/15/2007 31,726,875 26,122,500 0.3
Total Fixed-Income Securities
in Brazil 126,270,522 136,011,697 1.7
Canada Real Estate CAD 16,501,370 First Place Tower, Inc., 10.92%
due 12/15/2015 (Convertible Bonds)(e) 26,874,771 34,113,409 0.4
Total Fixed-Income Securities
in Canada 26,874,771 34,113,409 0.4
Cayman Multi- USD 50,000,000 Beta Finance Corp., 0.20% due
Islands Industry 5/27/2000 (q) 51,191,648 48,980,000 0.6
Total Fixed-Income Securities in
the Cayman Islands 51,191,648 48,980,000 0.6
Chile Utilities Empresa Electricidad del Norte:
--Electric USD 28,500,000 10.50% due 6/15/2005 (q) 28,625,000 19,095,000 0.3
USD 15,800,000 10.50% due 6/15/2005 (Regulation S) 11,354,750 10,586,000 0.1
USD 10,000,000 7.75% due 3/15/2006 5,500,000 5,900,000 0.1
Total Fixed-Income Securities
in Chile 45,479,750 35,581,000 0.5
China Multi- USD 18,300,000 Shanghai Industrial Investment
Industry Treasury Co., 1% due 2/24/2003
(Convertible Bonds) 12,667,385 15,921,000 0.2
USD 4,450,000 Shanghai Investment Holdings,
1% due 6/12/2002 (Convertible
Bonds) 4,103,654 3,982,750 0.0
--------------- --------------- ------
16,771,039 19,903,750 0.2
Utilities USD 55,250,000 Huaneng Power International PLC,
--Electric 1.75% due 5/21/2004 (Convertible
Bonds) 45,890,393 51,658,750 0.7
Total Fixed-Income Securities
in China 62,661,432 71,562,500 0.9
France Real EUR 25,113,598 Societe Fonciere Lyonnaise SA,
Estate 4% due 10/31/2004 (Convertible
Bonds) 28,268,929 30,947,997 0.4
Total Fixed-Income Securities
in France 28,268,929 30,947,997 0.4
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Currency Face Value Percent of
COUNTRY Industries Denomination Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
Hong Kong Multi- USD 17,250,000 First Pacific Capital Ltd., 2%
Industry due 3/27/2002 (Convertible
Bonds) $ 16,927,221 $ 17,163,750 0.2%
USD 16,000,000 Hutchison Delta Finance, 7% due
11/08/2001 (Convertible Bonds) 16,640,000 18,080,000 0.2
Hutchison Whampoa Ltd.:
USD 49,250,000 7.45% due 8/01/2017 41,025,000 45,433,125 0.6
USD 24,400,000 7.50% due 8/01/2027 19,671,062 22,326,000 0.3
--------------- --------------- ------
94,263,283 103,002,875 1.3
Utilities-- USD 21,750,000 Cathay International Ltd., 13% due
Infrastructure 4/15/2008 (p)(q) 21,618,750 5,437,500 0.1
Total Fixed-Income Securities
in Hong Kong 115,882,033 108,440,375 1.4
Indonesia Paper & USD 7,650,000 APP Finance VII Mauritius, 3.50%
Forest due 4/30/2003 (Convertible Bonds) 6,196,500 5,899,680 0.1
Products APP Global Finance V Ltd. (Convertible
Bonds):
USD 1,000,000 2% due 7/25/2000 1,135,500 915,000 0.0
USD 34,000,000 2% due 7/25/2000 (q) 34,000,000 31,110,000 0.4
USD 3,965,000 PT Indah Kiat Pulp & Paper, 8.875%
due 11/01/2000 (q) 3,300,863 3,290,950 0.0
Total Fixed-Income Securities in
Indonesia 44,632,863 41,215,630 0.5
Japan Banking JPY 100,000,000 Asahi Bank, Ltd., 0.50% due
8/01/2007 (Convertible Bonds) 581,630 1,056,604 0.0
JPY 8,991,000,000 Fuji International Finance Trust,
0.25% due 2/01/2002 (Convertible
Preference Shares) 57,009,671 56,924,151 0.7
USD 23,250,000 MBL International Finance (Bermuda),
3% due 11/30/2002 (Convertible Bonds) 22,298,437 27,318,750 0.3
JPY 4,800,000,000 Sumitomo Bank International Finance
NV, 0.75% due 5/31/2001 (Convertible
Bonds) 39,246,723 52,830,189 0.7
--------------- --------------- ------
119,136,461 138,129,694 1.7
Beverages JPY 1,811,000,000 Kinki Coca-Cola Bottling Co., Ltd.,
#1, 0.85% due 12/30/2003 (Convertible
Bonds) 15,889,725 16,553,375 0.2
JPY 582,000,000 Shikoku Coca-Cola Bottling Co.,
Ltd., #1, 2.40% due 3/29/2002
(Convertible Bonds) 5,406,026 6,935,195 0.1
--------------- --------------- ------
21,295,751 23,488,570 0.3
Chemicals JPY 301,000,000 Shin-Etsu Chemical Co., Ltd., #6,
0.40% due 9/30/2005 (Convertible
Bonds) 2,987,802 5,081,031 0.1
Electrical JPY 1,339,000,000 Matsushita Electric Works, Ltd., #9,
Equipment 1% due 11/30/2005 (Convertible
Bonds) 13,252,580 12,935,245 0.2
Electronics JPY 650,000,000 Matsushita Electric Industrial
Company, Ltd., #5, 1.30% due
3/29/2002 (Convertible Bonds) 6,133,347 7,985,325 0.1
Financial JPY 862,000,000 Kokusai Securities Co., Ltd., 1.25%
Services due 9/30/2013 (Convertible Bonds) 7,747,314 11,457,191 0.1
Industrial JPY 1,492,000,000 Fuji Heavy Industries, #4, 0.90% due
9/30/2003 (Convertible Bonds) 13,672,391 19,492,964 0.3
CHF 1,400,000 Nissin Kogyo Co. Ltd., 0.125% due
3/31/2003 (Convertible Bonds) 1,080,777 1,425,568 0.0
JPY 923,000,000 Toyoda Automatic Loom Works, #2,
0.35% due 9/30/2003 (Convertible
Bonds) 8,689,380 9,133,249 0.1
--------------- --------------- ------
23,442,548 30,051,781 0.4
Insurance JPY 456,000,000 Mitsui Marine & Fire Insurance
Co., Ltd., #3, 0.70% due 3/31/2003
(Convertible Bonds) 3,786,983 4,015,094 0.1
JPY 117,000,000 Nichido Fire & Marine Insurance
Co., Ltd., #5, 1% due 3/31/2003
(Convertible Bonds) 1,109,381 1,040,981 0.0
Nisshin Fire & Marine Insurance
Co., Ltd. (Convertible Bonds):
JPY 900,000,000 #1, 0.65% due 3/31/2004 7,132,646 7,290,566 0.1
JPY 1,626,000,000 #2, 0.75% due 3/31/2006 12,682,239 12,680,755 0.2
Sumitomo Marine & Fire Insurance
Co., Ltd. (Convertible Bonds):
JPY 300,000,000 #3, 1.10% due 3/29/2002 2,522,005 3,081,761 0.0
JPY 1,527,000,000 #4, 1.20% due 3/31/2004 13,104,977 15,891,044 0.2
--------------- --------------- ------
40,338,231 44,000,201 0.6
Total Fixed-Income Securities
in Japan 234,334,034 273,129,038 3.5
Malaysia Oil-- Petroliam Nasional BHD:
Related USD 69,725,000 7.75% due 8/15/2015 (q) 37,589,875 64,495,625 0.8
USD 98,314,000 7.625% due 10/15/2026 61,147,377 87,253,675 1.1
--------------- --------------- ------
98,737,252 151,749,300 1.9
Telecommuni- Telekom Malaysia BHD:
cations USD 56,750,000 4% due 10/03/2004 (Convertible
Bonds) 47,266,962 47,953,750 0.6
USD 25,825,000 7.875% due 8/01/2025 14,208,485 23,500,750 0.3
--------------- --------------- ------
61,475,447 71,454,500 0.9
Total Fixed-Income Securities
in Malaysia 160,212,699 223,203,800 2.8
Mexico Government USD 27,000,000 United Mexican States, 6.25%
Obligations due 12/31/2019 20,351,250 21,583,125 0.3
Oil--Related Petroleos Mexicanos:
USD 57,000,000 9.25% due 3/30/2018 (Regulation S) 50,820,000 53,010,000 0.6
USD 45,150,000 8.625% due 12/01/2023 (q) 25,007,000 38,499,437 0.5
--------------- --------------- ------
75,827,000 91,509,437 1.1
Total Fixed-Income Securities in
Mexico 96,178,250 113,092,562 1.4
New Government NZD 15,000,000 New Zealand Index Linked Notes,
Zealand Obligations Series 216, 4.50% due 2/14/2016 8,418,821 8,683,133 0.1
Total Fixed-Income Securities in
New Zealand 8,418,821 8,683,133 0.1
Philippines Multi- USD 4,750,000 AC International Finance, 0.50% due
Industry 7/30/2002 (Convertible Bonds) 4,373,252 5,118,125 0.1
Total Fixed-Income Securities in
the Philippines 4,373,252 5,118,125 0.1
Russia Government USD 64,400,000 City of St. Petersburg, 9.50%
Obligations due 6/18/2002 22,912,562 22,540,000 0.3
Russian Federation Bonds:
USD 9,100,000 9.25% due 11/27/2001 (Regulation S) 4,846,505 4,732,000 0.1
USD 116,300,000 8.75% due 7/24/2005 (q) 27,442,800 43,612,500 0.5
USD 142,750,000 12.75% due 6/24/2028 (g)(q) 131,353,237 59,241,250 0.7
USD 31,900,000 12.75% due 6/24/2028 (Regulation S) 16,836,300 13,238,500 0.2
--------------- --------------- ------
203,391,404 143,364,250 1.8
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Currency Face Value Percent of
COUNTRY Industries Denomination Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
Russia Oil & Gas USD 13,250,000 Lukinter Finance, 3.50% due
(concluded) Producers 5/06/2002 (Convertible Bonds) $ 11,016,687 $ 9,076,250 0.1%
Telecommuni- PLD Telekom Inc. (i):
cations USD 74,500,000 14% due 6/01/2004 74,500,000 39,485,000 0.5
USD 18,700,000 9% due 6/01/2006 (Convertible
Bonds)(q) 18,756,250 7,807,250 0.1
--------------- --------------- ------
93,256,250 47,292,250 0.6
Utilities USD 56,100,000 Mosenergo Finance BV, 8.375% due
10/09/2002 26,803,212 19,635,000 0.3
Total Fixed-Income Securities in
Russia 334,467,553 219,367,750 2.8
Singapore Multi- USD 7,250,000 Far East Livingston Shipyards, 1.50%
Industry due 5/02/2001 (Convertible Bonds) 5,945,450 6,380,000 0.1
Keppel Corporation Limited
(Redeemable Cumulative Convertible
Preference Shares):
USD 22,950,000 2% due 8/12/2002 (q) 22,942,500 23,236,875 0.3
USD 4,600,000 2% due 8/12/2002 (Regulation S) 4,217,111 4,657,500 0.1
--------------- --------------- ------
33,105,061 34,274,375 0.5
Telecommuni- USD 18,400,000 Fullerton Global Corp., 0% due
cations 4/02/2003 (Convertible Bonds)(b) 16,964,327 18,860,000 0.2
Total Fixed-Income Securities in
Singapore 50,069,388 53,134,375 0.7
South Insurance USD 36,300,000 LibLife International, 6.50% due
Africa 9/30/2004 (Convertible Bonds) 37,208,125 34,938,750 0.4
Total Fixed-Income Securities in
South Africa 37,208,125 34,938,750 0.4
South Banking Koram Bank Ltd. (Convertible Bonds):
Korea USD 1,500,000 0.25% due 8/26/2007 (q) 1,447,500 1,455,000 0.0
USD 5,750,000 0.25% due 8/26/2007 (Regulation S) 5,291,426 5,577,500 0.1
--------------- --------------- ------
6,738,926 7,032,500 0.1
Electronics Samsung Electronics Co.
(Regulation S) (Convertible Bonds):
USD 5,400,000 0.25% due 12/31/2006 4,450,375 6,574,500 0.1
USD 29,750,000 0% due 12/31/2007 (b) 27,296,357 29,898,750 0.4
--------------- --------------- ------
31,746,732 36,473,250 0.5
Energy Ssangyong Oil Refining Co.:
Related USD 9,755,000 3% due 12/31/2004 (Convertible
Bonds) 7,206,837 6,048,100 0.1
USD 16,535,000 3.75% due 12/31/2008 17,448,950 17,361,750 0.2
--------------- --------------- ------
24,655,787 23,409,850 0.3
Machinery & CHF 10,000,000 Medison Co., 0.25% due 3/06/2002
Equipment (Convertible Bonds) 6,433,041 7,094,994 0.1
Multi- CHF 1,250,000 Daewoo Corporation, 0.125% due
Industry 12/31/2001 (Convertible Bonds) 839,431 714,426 0.0
Utilities-- USD 25,250,000 Korea Electric Power Corp., 5% due
Electric 8/01/2001 (Convertible Bonds) 23,247,175 24,240,000 0.3
Total Fixed-Income Securities
in South Korea 93,661,092 98,965,020 1.3
Thailand Metals-- USD 44,000,000 NSM Steel Inc., 12% due
Steel 2/01/2006 (q) 40,223,632 8,360,000 0.1
Total Fixed-Income Securities
in Thailand 40,223,632 8,360,000 0.1
Turkey Telecommuni- USD 4,000,000 Cellco Finance NV, 15% due
cations 8/01/2005 4,000,000 3,925,000 0.0
Total Fixed-Income Securities
in Turkey 4,000,000 3,925,000 0.0
United Financial GBP 12,250,000 TransAtlantic Holdings, 5.50% due
Kingdom Services 4/30/2009 (Convertible Bonds) 15,274,103 20,757,931 0.3
Telecommuni- USD 26,200,000 International Cabletel, Inc.,
cations Series B, 0/11.50% due 2/01/2006 (b) 21,736,742 23,842,000 0.3
GBP 14,250,000 NTL Incorporated, Series B, 0/10.75%
due 4/01/2008 (b) 13,323,003 15,887,681 0.2
--------------- --------------- ------
35,059,745 39,729,681 0.5
Total Fixed-Income Securities in the
United Kingdom 50,333,848 60,487,612 0.8
United Airlines USD 14,000,000 Trans World Airlines, 11.375% due
States 3/01/2006 14,000,000 6,440,000 0.1
Bio- USD 7,200,000 Cetus Corporation, 5.25% due
technology 5/21/2002 (Convertible Bonds) 5,220,250 7,105,500 0.1
Food & USD 15,000,000 Tom's Foods Inc., 10.50% due
Beverage 11/01/2004 15,000,000 13,950,000 0.2
Healthcare USD 17,450,000 American Retirement Corp., 5.75%
due 10/01/2002 (Convertible Bonds) 17,174,000 15,356,000 0.2
Industrial USD 8,000,000 Bar Technologies Ltd., 13.50% due
4/01/2001 7,412,450 8,320,000 0.1
USD 25,000,000 CTI Holdings SA, 0/11.50% due
4/15/2008 (b) 15,875,597 14,312,500 0.2
USD 13,700,000 Camargo Correa, 8.75% due 7/22/2005 11,841,750 11,234,000 0.1
--------------- --------------- ------
35,129,797 33,866,500 0.4
Metals USD 2,442,500 Worthington Industries, Inc.
--Steel (Convertible, Series DECS), 7.25% 38,015,300 25,646,250 0.3
Real Estate Security Capital U.S. Realty
(Convertible Bonds):
USD 53,100,000 2% due 5/22/2003 (q) 44,051,023 39,341,790 0.5
USD 3,650,000 2.50% due 5/22/2003 (Regulation S) 2,696,857 2,704,285 0.0
--------------- --------------- ------
46,747,880 42,046,075 0.5
Real Estate USD 25,500,000 Alexander Haagen Properties, Inc.,
Investment 7.25% due 12/27/2003 (Exchangeable
Trusts Debentures) 25,291,250 24,320,625 0.3
USD 6,500,000 Centerpoint Properties Trust,
8.22% due 1/15/2004 (Convertible
Bonds) 6,500,000 12,601,875 0.2
USD 25,000,000 First Washington Realty, 8.25%
due 6/27/1999 (Exchangeable
Debentures)(q) 25,000,000 29,000,000 0.4
HRPT Properties Trust (Convertible
Bonds):
USD 40,000,000 7.25% due 10/01/2001 40,000,000 37,700,000 0.5
USD 15,000,000 Series A, 7.50% due 10/01/2003 15,000,000 13,837,500 0.2
USD 4,500,000 Healthcare Realty Trust, Inc.,
6.55% due 3/14/2002 (Convertible
Bonds) 4,226,108 3,926,250 0.0
LTC Properties, Inc. (Convertible
Bonds):
USD 10,000,000 8.25% due 9/30/1999 10,000,000 9,937,500 0.1
USD 8,000,000 8.50% due 1/01/2001 8,000,000 7,490,000 0.1
USD 3,700,000 8.25% due 7/01/2001 3,644,500 3,390,125 0.0
USD 25,000,000 Leperq Corporate Income Fund, 8%
due 3/17/2004 (Exchangeable
Secured Notes)(q) 25,000,000 24,078,125 0.3
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Currency Face Value Percent of
COUNTRY Industries Denomination Amount Fixed-Income Securities Cost (Note 1a) Net Assets
<S> <S> <S> <C> <S> <C> <C> <C>
United Real Estate USD 12,500,000 Liberty Property LP, 9% due
States Investment 7/01/2001 (Convertible Bonds) $ 12,500,000 $ 14,531,250 0.2%
(concluded) Trusts USD 27,000,000 Malan Realty Investors, Inc.,
(concluded) 8.50% due 7/15/2003 (Convertible
Bonds)(q) 27,000,000 25,380,000 0.3
USD 9,415,000 Meditrust Corporation, 8.54% due
7/01/2000 (Convertible Bonds) 9,602,637 9,003,094 0.1
USD 5,000,000 Mid-Atlantic Realty Trust, 7.625%
due 9/15/2003 (Convertible Bonds) 4,875,000 5,593,750 0.1
National Health Investors, Inc.
(Convertible Bonds):
USD 22,000,000 7.75% due 1/01/2001 22,000,000 19,910,000 0.3
USD 4,500,000 7% due 2/01/2004 3,351,130 3,403,125 0.0
USD 32,800,000 Omega Healthcare Investors, Inc.,
8.50% due 2/01/2001 (Convertible
Bonds) 32,846,000 30,873,000 0.4
USD 5,500,000 Sizeler Property Investors, Inc.,
8% due 7/15/2003 (Convertible Bonds) 5,505,000 5,115,000 0.1
--------------- --------------- ------
280,341,625 280,091,219 3.6
Retail USD 12,500,000 Coinstar, Inc., 0/13% due 10/01/2006
(b)(j) 11,811,971 12,375,000 0.2
Retail-- USD 3,445,000 Ugly Duckling Corporation, 12% due
Automotive 10/15/2003 (n) 3,100,500 3,100,500 0.0
Savings USD 21,400,000 FirstFed Financial Corp., 11.75% due
Banks 10/01/2004 21,401,250 22,523,500 0.3
Semiconductors Cypress Semiconductor Corporation
(Convertible Bonds):
USD 2,800,000 6% due 10/01/2002 2,399,500 2,548,000 0.0
USD 2,850,000 6% due 10/01/2002 (Regulation S)(q) 2,447,175 2,593,500 0.1
--------------- --------------- ------
4,846,675 5,141,500 0.1
Telecommuni- USD 120,363,000 CellNet Data Systems, Inc., 0/14%
cations due 10/01/2007 (b) 62,296,314 38,516,160 0.5
Centennial Communications Corp. (b):
USD 40,000,000 0/14% due 1/01/2005 (q) 24,339,821 16,000,000 0.2
USD 11,925,186 0/9% due 7/01/2006 (o) 10,965,699 5,962,593 0.1
USD 118,922,000 Geotek Communications, Inc., Series
B, 0/15% due 7/15/2005 (b)(p) 63,579,972 51,136,460 0.6
Telegroup Inc. (p):
USD 5,000,000 12% due 4/15/1999 (o) 5,000,000 4,900,000 0.1
USD 21,750,000 0/10.50% due 11/01/2004 (b) 19,233,387 5,056,875 0.1
USD 22,000,000 8% due 4/15/2005 (Convertible
Bonds)(q) 22,000,000 22,000 0.0
USN Communications, Inc.:
USD 17,330,070 14% due 6/30/1999 (o) 17,330,070 17,070,119 0.2
USD 32,032,000 Series B, 0/14.625% due 8/15/2004
(b)(q) 20,551,150 3,203,200 0.0
USD 12,697,035 Series B, 0/9% due 1/13/2006 (b) 10,927,911 15,871 0.0
USD 30,000,000 United International Holdings,
Series B, 0/10.75% due 2/15/2008
(b)(f) 20,160,202 20,325,000 0.3
United USN Inc. (b)(q):
USD 17,000,000 0/14% due 9/15/2003 (h) 12,906,298 1,700,000 0.0
USD 35,000,000 0/9% due 9/30/2004 (Convertible
Bonds) 33,742,151 43,750 0.0
--------------- --------------- ------
323,032,975 163,952,028 2.1
Trucking USD 28,250,000 AmeriTruck Distribution Corp.,
12.25% due 11/15/2005 (p) 26,444,325 1,553,750 0.0
US USD 135,000,000 US Treasury Inflation Indexed Notes,
Government 3.375% due 1/15/2007 133,163,156 135,169,115 1.7
Obligations USD 120,000,000 US Treasury Notes, 5.875% due
2/15/2000 (c) 118,413,281 120,900,000 1.5
--------------- --------------- ------
251,576,437 256,069,115 3.2
Total Fixed-Income Securities
in the United States 1,093,842,985 889,216,937 11.3
Venezuela Finance USD 8,443,000 CANTV Finance Ltd., 9.25% due
2/01/2004 8,231,925 6,669,970 0.1
Total Fixed-Income Securities
in Venezuela 8,231,925 6,669,970 0.1
Total Investments in Fixed-Income
Securities 3,204,176,391 3,039,730,247 38.6
Short-Term Securities
Indonesia Certificates UBS Singapore:
of IDR 25,000,000,000 24% due 5/06/1999 2,906,977 3,107,520 0.0
Deposit IDR 60,000,000,000 24% due 5/10/1999 6,936,416 7,458,048 0.1
IDR 30,000,000,000 23.50% due 5/12/1999 3,448,275 3,729,024 0.1
IDR 80,000,000,000 22.50% due 5/17/1999 9,329,446 9,944,065 0.1
IDR 57,000,000,000 22% due 5/19/1999 6,627,907 7,085,146 0.1
IDR 37,000,000,000 22% due 5/24/1999 4,314,869 4,599,130 0.1
IDR 25,000,000,000 22% due 7/07/1999 3,107,520 3,107,520 0.0
Total Short-Term Securities
in Indonesia 36,671,410 39,030,453 0.5
United Commercial USD 20,294,000 Ford Motor Credit Company,
States Paper+++ 4.95% due 5/03/1999 20,288,419 20,288,419 0.2
USD 100,000,000 General Electric Capital Corp.,
4.85% due 5/03/1999 99,973,056 99,973,056 1.3
Total Short-Term Investments
in the United States 120,261,475 120,261,475 1.5
Total Investments in Short-Term
Securities 156,932,885 159,291,928 2.0
Total Investments 7,357,469,783 7,544,649,933 95.9
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
OPTIONS Nominal Value Premiums Value Percent of
WRITTEN Covered by Options Issue Received (Note 1a) Net Assets
<S> <C> <S> <C> <C> <C>
Call Options 300,000 Compaq Computer Corporation,
Written expiring October 1999 at USD 35 $ (1,565,947) $ (168,750) 0.0%
1,465,000 Cypress Semiconductor Corporation,
expiring June 1999 at USD 10 (1,970,358) (1,648,125) 0.0
Total Options Written (3,536,305) (1,816,875) 0.0
Total Investments, Net of Options
Written $ 7,353,933,478 7,542,833,058 95.9
===============
Foreign Time Deposits* 5,804,129 0.0
Variation Margin on Financial Futures Contracts** (1,578,122) 0.0
Unrealized Depreciation on Forward Foreign Exchange Contracts*** (2,314,736) 0.0
Other Assets Less Liabilities 321,769,620 4.1
--------------- ------
Net Assets $ 7,866,513,949 100.0%
=============== ======
<FN>
++American Depositary Receipts (ADR).
++++Global Depositary Receipts (GDR).
+++Commercial Paper is traded on a discount basis. The interest
rates shown reflect the discount rates paid at April 30, 1999.
*Foreign time deposit bears interest at 4.562% and matures on 6/29/1999.
**Financial futures contracts purchased as of April 30, 1999
were as follows:
<CAPTION>
Number of Expiration Value
Contracts Issue Exchange Date (Notes 1a & 1d)
<C> <S> <S> <S> <S>
1,042 Nikkei 225 OSAKA June 1999 $146,185,828
Total Financial Futures Contracts Purchased
(Total Contract Price--$125,554,633) $146,185,828
============
Financial futures contracts sold as of April 30, 1999
were as follows:
Number of Expiration Value
Contracts Issue Exchange Date (Notes 1a & 1d)
<C> <S> <S> <S> <C>
170 Japanese
Government Bond Tokyo June 1999 $192,780,713
375 Standard & Poor's
500 Index NYSE June 1999 125,296,875
Total Financial Futures Contracts Sold
(Total Contract Price--$311,194,281) $318,077,588
============
***Forward foreign exchange contracts sold as of April 30, 1999
were as follows:
<CAPTION>
Unrealized
Appreciation
Foreign Expiration (Depreciation)
Currency Sold Date (Note 1d)
<S> <C> <S> <C>
CHF 44,500,000 June 1999 $ 168,680
EUR 10,800,000 May 1999 396,468
EUR 46,438,475 June 1999 392,838
GBP 40,000,000 May 1999 87,500
GBP 41,000,000 June 1999 24,515
JPY 35,000,000,000 May 1999 (3,275,877)
JPY 32,000,000,000 June 1999 (247,492)
NOK 172,000,000 May 1999 42,744
SEK 375,000,000 June 1999 95,888
Total Unrealized Depreciation on Forward
Foreign Exchange Contracts--Net
(USD Commitment--$848,793,131) $ (2,314,736)
============
(a)Warrants entitle the Fund to purchase a predetermined number of
shares of stock/face amount of bonds and are non-income producing.
The purchase price and number of shares/face amount of bonds are
subject to adjustment under certain conditions until the expiration
date.
(b)Represents a zero coupon or step bond. The interest rate on a step
bond represents the fixed rate of interest that will commence its
accrual on a predetermined date until maturity.
(c)All or a portion of security held as collateral in connection with
open financial futures contracts.
(d)Floating Rate Note.
(e)Each $10 face amount contains 40 shares of First Place Tower, Inc.
(f)Each $1,000 face amount contains one warrant of United International
Holdings.
(g)Due to the uncertainty of financial and economic conditions in Russia,
effective September 24, 1998, interest accrual ceased.
(h)Each $1,000 face amount contains one warrant of United USN Inc.
(i)Each $1,000 face amount contains one warrant of PLD Telekom Inc.
(j)Each $1,000 face amount contains one warrant of Coinstar, Inc.
(k)Receipts evidence payment by the Fund of 62% of the purchase price
of common stock of HIH Insurance Limited. The Fund is obligated to
pay the remaining 38%, approximately $5,344,000, over the next quarter.
(l)Represents a Brady Bond. Brady Bonds are securities which have been
issued to refinance commercial bank loans and other debt. The risk
associated with these instruments is the amount of any uncollateralized
principal or interest payments since there is a high default rate of
commercial bank loans by countries issuing these securities.
(m)Subject to principal paydowns as a result of prepayments or
refinancings of the underlying mortgage instruments. As a result,
the average life may be less than the original maturity.
(n)Investments in companies 5% or more of whose outstanding
securities are held by the Fund (such companies are defined
as "Affiliated Companies" in section 2(a)(3) of the Investment
Company Act of 1940) are as follows:
<CAPTION>
Dividend/
Net Share/ Net Interest
Industry Affiliate Face Activity Cost Income
<S> <S> <C> <C> <C>
Healthcare Advocat, Inc. (60,000) $ (570,000) ++
Services
Financial Anthracite Capital,
Services Inc. -- -- $1,144,282
Electronics Checkpoint
Systems, Inc. (200,900) (2,057,116) ++
Metals & Commonwealth
Mining Industries, Inc. (292,700) (5,344,111) 110,000
Utilities-- El Paso Electric
Electric & Company (75,000) (393,750) ++
Gas
Retail Stores Filene's Basement
Corporation -- -- ++
Telecommu- General Communication,
nications Inc. (Class A) -- -- ++
Real Estate Imperial Credit
Investment Commercial Mortgage
Trusts Investment Corp. -- -- 1,916,775
Business Data Information
Systems Resources, Inc. (100,000) (1,601,897) ++
Oil Services Input/Output, Inc. (400,000) (6,199,200) ++
Computer Inprise Corporation -- -- ++
Software
Insurance Risk Capital
Holdings, Inc. -- -- ++
Telecommu- Rogers Cantel Mobile
nications Communications Inc. `B' -- -- ++
Telecommu- Rogers Cantel Mobile
nications Communications
Inc. `B' (USD) -- -- ++
Gaming Scientific Games
Holdings Corp. -- -- ++
Real Estate Security Capital
Group Incorporated
(Class B) -- -- ++
Retail-- Ugly Duckling
Automotive Corporation (100,000) (1,425,000) ++
Retail-- Ugly Duckling
Automotive Corporation, 12%
due 10/15/2003 -- -- 190,623
++Non-income producing security.
(o)Restricted securities as to resale. The value of the Fund's investments in
restricted securities was approximately $32,933,000, representing 0.4% of
net assets.
<CAPTION>
Acquisition Value
Issue Date(s) Cost (Note 1a)
<S> <C> <C> <C>
Centennial
Communications Corp.,
0/9% due 7/01/2006 1/13/1998 $ 10,965,699 $ 5,962,593
Diva Systems Corp. 7/17/1996--
(Convertible, Series C) 8/22/1996 8,410,000 5,000,000
Telegroup Inc., 12% due
4/15/1999 11/16/1998 5,000,000 4,900,000
USN Communications, Inc.,
14% due 6/30/1999 2/25/1999 17,330,070 17,070,119
Total $ 41,705,769 $ 32,932,712
(p)Non-income producing security.
(q)The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of April 30, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$7,357,469,783)
(Note 1a) $ 7,544,649,933
Foreign cash (Note 1c) 259,448,240
Cash 174,373
Foreign time deposits (Note 1c) 5,804,129
Receivables:
Securities sold $ 65,821,469
Interest 56,172,012
Dividends 16,070,566
Capital shares sold 3,992,394
Forward foreign exchange contracts (Note 1d) 1,723,431
Principal paydowns 600,242 144,380,114
---------------
Prepaid registration fees and other assets (Note 1g) 4,504,142
---------------
Total assets 7,958,960,931
---------------
Liabilities: Options written, at value (premiums received--$3,536,305)
(Notes 1a & 1d) 1,816,875
Unrealized depreciation on forward foreign exchange
contracts (Note 1d) 2,314,736
Payables:
Capital shares redeemed 44,810,957
Securities purchased 20,926,260
Distributor (Note 2) 4,570,165
Investment adviser (Note 2) 4,450,113
Variation margin (Note 1d) 1,578,122 76,335,617
---------------
Accrued expenses and other liabilities 11,979,754
---------------
Total liabilities 92,446,982
---------------
Net Assets: Net assets $ 7,866,513,949
===============
Net Assets Class A Shares of Common Stock, $0.10 par value,
Consist of: 450,000,000 shares authorized $ 9,321,399
Class B Shares of Common Stock, $0.10 par value,
2,000,000,000 shares authorized 34,603,134
Class C Shares of Common Stock, $0.10 par value, 200,000,000
shares authorized 2,431,381
Class D Shares of Common Stock, $0.10 par value, 900,000,000
shares authorized 8,273,027
Paid-in capital in excess of par 7,047,734,897
Undistributed investment income--net 89,561,397
Undistributed realized capital gains on investments and
foreign currency transactions--net 480,611,265
Unrealized appreciation on investments and foreign currency
transactions--net 193,977,449
---------------
Net assets $ 7,866,513,949
===============
Net Asset Class A--Based on net assets of $1,360,339,927 and 93,213,994
Value: shares outstanding $ 14.59
===============
Class B--Based on net assets of $4,957,146,248 and 346,031,335
shares outstanding $ 14.33
===============
Class C--Based on net assets of $343,765,205 and 24,313,805
shares outstanding $ 14.14
===============
Class D--Based on net assets of $1,205,262,569 and 82,730,267
shares outstanding $ 14.57
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1999
<S> <S> <C> <C>
Investment Interest and discount earned (net of $51,170 foreign
Income withholding tax) $ 214,597,487
(Notes 1e & 1f): Dividends (net of $3,336,492 foreign withholding tax) 43,942,816
Other 1,499,552
---------------
Total income 260,039,855
---------------
Expenses: Investment advisory fees (Note 2) $ 32,863,992
Account maintenance and distribution fees--Class B (Note 2) 28,646,109
Transfer agent fees--Class B (Note 2) 6,058,658
Account maintenance and distribution fees--Class C (Note 2) 2,071,259
Account maintenance fees--Class D (Note 2) 1,536,038
Transfer agent fees--Class A (Note 2) 1,356,609
Custodian fees 1,295,942
Transfer agent fees--Class D (Note 2) 1,204,812
Printing and shareholder reports 542,575
Transfer agent fees--Class C (Note 2) 459,686
Accounting services (Note 2) 300,139
Professional fees 270,174
Registration fees (Note 1g) 67,045
Directors' fees and expenses 24,865
Pricing fees 14,046
Dividends on short sales (Note 1i) 266
Other 116,875
---------------
Total expenses before reimbursement 76,829,090
Reimbursement of expenses (Note 2) (2,675,944)
---------------
Total expenses after reimbursement 74,153,146
---------------
Investment income--net 185,886,709
---------------
Realized & Realized gain from:
Unrealized Gain on Investments--net 451,674,328
Investments & Foreign currency transactions--net 34,573,257 486,247,585
Foreign Currency ---------------
Transactions--Net Change in unrealized appreciation/depreciation on:
(Notes 1c, 1d, Investments--net 892,343,404
1f & 3): Foreign currency transactions--net 17,298,335 909,641,739
--------------- ---------------
Net realized and unrealized gain on investments and foreign
currency transactions 1,395,889,324
---------------
Net Increase in Net Assets Resulting from Operations $ 1,581,776,033
===============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: April 30, 1999 Oct. 31, 1998
<S> <S> <C> <C>
Operations: Investment income--net $ 185,886,709 $ 501,610,053
Realized gain on investments and foreign currency
transactions--net 486,247,585 649,011,781
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net 909,641,739 (1,754,814,316)
--------------- ---------------
Net increase (decrease) in net assets resulting from
operations 1,581,776,033 (604,192,482)
--------------- ---------------
Dividends & Investment income--net:
Distributions to Class A (21,048,523) (113,534,042)
Shareholders Class B (54,465,169) (435,917,299)
(Note 1h): Class C (4,010,816) (31,817,454)
Class D (16,800,804) (80,421,353)
Realized gain on investments--net:
Class A (112,720,460) (159,001,453)
Class B (494,148,058) (747,330,007)
Class C (36,790,295) (52,244,261)
Class D (99,226,016) (112,523,476)
--------------- ---------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (839,210,141) (1,732,789,345)
--------------- ---------------
Capital Share Net decrease in net assets derived from capital share
Transactions transactions (2,954,380,739) (1,747,724,489)
(Note 4): --------------- ---------------
Net Assets: Total decrease in net assets (2,211,814,847) (4,084,706,316)
Beginning of period 10,078,328,796 14,163,035,112
--------------- ---------------
End of period* $ 7,866,513,949 $10,078,328,796
=============== ===============
<FN>
*Undistributed investment income--net $ 89,561,397 $ --
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A++
The following per share data and ratios have
been derived from information provided in For the Six
the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning
Operating of period $ 13.25 $ 15.92 $ 15.17 $ 14.21 $ 13.07
Performance: ----------- ----------- ----------- ----------- -----------
Investment income--net .33 .67 .71 .78 .79
Realized and unrealized gain
(loss) on investments and
foreign currency transactions
--net 2.26 (1.28) 1.57 1.59 1.04
----------- ----------- ----------- ----------- -----------
Total from investment operations 2.59 (.61) 2.28 2.37 1.83
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.20) (.86) (.88) (.98) (.39)
Realized gain on investments--net (1.05) (1.20) (.65) (.43) (.30)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions (1.25) (2.06) (1.53) (1.41) (.69)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 14.59 $ 13.25 $ 15.92 $ 15.17 $ 14.21
=========== =========== =========== =========== ===========
Total Investment Based on net asset value per
Return:** share 21.24%+++ (4.43%) 16.08% 17.81% 14.81%
=========== =========== =========== =========== ===========
Ratios to Average Expenses, net of reimbursement .95%* .84% .83% .86% .90%
Net Assets: =========== =========== =========== =========== ===========
Expenses 1.01%* .93% .91% .93% .90%
=========== =========== =========== =========== ===========
Investment income--net 4.99%* 4.62% 4.64% 5.31% 5.98%
=========== =========== =========== =========== ===========
Supplemental Net assets, end of period
Data: (in thousands) $ 1,360,340 $ 1,513,999 $ 2,132,254 $ 1,841,974 $ 1,487,805
=========== =========== =========== =========== ===========
Portfolio turnover 7.50% 49.67% 55.42% 51.26% 36.78%
=========== =========== =========== =========== ===========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class B++
The following per share data and ratios have
been derived from information provided in For the Six
the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning
Operating of period $ 13.01 $ 15.65 $ 14.95 $ 14.01 $ 12.91
Performance: ----------- ----------- ----------- ----------- -----------
Investment income--net .26 .52 .55 .62 .65
Realized and unrealized gain
(loss) on investments and
foreign currency trans-
actions--net 2.23 (1.26) 1.52 1.59 1.01
----------- ----------- ----------- ----------- -----------
Total from investment operations 2.49 (.74) 2.07 2.21 1.66
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.12) (.70) (.72) (.84) (.26)
Realized gain on invest-
ments--net (1.05) (1.20) (.65) (.43) (.30)
----------- ----------- ----------- ----------- -----------
Total dividends and
distributions (1.17) (1.90) (1.37) (1.27) (.56)
----------- ----------- ----------- ----------- -----------
Net asset value, end of
period $ 14.33 $ 13.01 $ 15.65 $ 14.95 $ 14.01
=========== =========== =========== =========== ===========
Total Investment Based on net asset value per
Return:** share 20.71%+++ (5.37%) 14.82% 16.71% 13.54%
=========== =========== =========== =========== ===========
Ratios to Average Expenses, net of reimbursement 1.96%* 1.86% 1.85% 1.87% 1.93%
Net Assets: =========== =========== =========== =========== ===========
Expenses 2.02%* 1.95% 1.93% 1.95% 1.93%
=========== =========== =========== =========== ===========
Investment income--net 3.97%* 3.60% 3.62% 4.29% 4.96%
=========== =========== =========== =========== ===========
Supplemental Net assets, end of period (in
Data: thousands) $ 4,957,146 $ 6,743,780 $ 9,879,603 $ 8,660,279 $ 6,668,499
=========== =========== =========== =========== ===========
Portfolio turnover 7.50% 49.67% 55.42% 51.26% 36.78%
=========== =========== =========== =========== ===========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class C++
The following per share data and ratios have For the
been derived from information provided in the Six Months
financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning
Operating of period $ 12.86 $ 15.50 $ 14.83 $ 13.94 $ 12.91
Performance: ----------- ----------- ----------- ----------- -----------
Investment income--net .25 .51 .54 .61 .64
Realized and unrealized gain
(loss) on investments and foreign
currency transactions--net 2.19 (1.24) 1.52 1.58 1.02
----------- ----------- ----------- ----------- -----------
Total from investment operations 2.44 (.73) 2.06 2.19 1.66
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.11) (.71) (.74) (.87) (.33)
Realized gain on investments
--net (1.05) (1.20) (.65) (.43) (.30)
----------- ----------- ----------- ----------- -----------
Total dividends and
distributions (1.16) (1.91) (1.39) (1.30) (.63)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 14.14 $ 12.86 $ 15.50 $ 14.83 $ 13.94
=========== =========== =========== =========== ===========
Total Investment Based on net asset value per
Return:** share 20.63%+++ (5.38%) 14.84% 16.68% 13.58%
=========== =========== =========== =========== ===========
Ratios to Average Expenses, net of reimbursement 1.97%* 1.88% 1.86% 1.88% 1.95%
Net Assets: =========== =========== =========== =========== ===========
Expenses 2.03%* 1.96% 1.94% 1.95% 1.95%
=========== =========== =========== =========== ===========
Investment income--net 3.98%* 3.61% 3.60% 4.24% 4.80%
=========== =========== =========== =========== ===========
Supplemental Net assets, end of period (in
Data: thousands) $ 343,765 $ 503,556 $ 671,467 $ 385,753 $ 102,361
=========== =========== =========== =========== ===========
Portfolio turnover 7.50% 49.67% 55.42% 51.26% 36.78%
=========== =========== =========== =========== ===========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class D++
The following per share data and ratios have For the
been derived from information provided in Six Months
the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning
Operating of period $ 13.23 $ 15.89 $ 15.15 $ 14.19 $ 13.08
Performance: ----------- ----------- ----------- ----------- -----------
Investment income--net .31 .64 .68 .77 .77
Realized and unrealized gain
(loss) on investments and foreign
currency transactions--net 2.26 (1.28) 1.55 1.57 1.01
----------- ----------- ----------- ----------- -----------
Total from investment
operations 2.57 (.64) 2.23 2.34 1.78
----------- ----------- ----------- ----------- -----------
Less dividends and distri-
butions:
Investment income--net (.18) (.82) (.84) (.95) (.37)
Realized gain on invest-
ments--net (1.05) (1.20) (.65) (.43) (.30)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions (1.23) (2.02) (1.49) (1.38) (.67)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 14.57 $ 13.23 $ 15.89 $ 15.15 $ 14.19
=========== =========== =========== =========== ===========
Total Investment Based on net asset value
Return:** per share 21.10%+++ (4.63%) 15.76% 17.59% 14.43%
=========== =========== =========== =========== ===========
Ratios to Average Expenses, net of reimbursement 1.20%* 1.10% 1.08% 1.10% 1.16%
Net Assets: =========== =========== =========== =========== ===========
Expenses 1.26%* 1.18% 1.16% 1.18% 1.16%
=========== =========== =========== =========== ===========
Investment income--net 4.74%* 4.40% 4.38% 5.04% 5.63%
=========== =========== =========== =========== ===========
Supplemental Net assets, end of period
Data: (in thousands) $ 1,205,263 $ 1,316,994 $ 1,479,711 $ 1,044,136 $ 256,525
=========== =========== =========== =========== ===========
Portfolio turnover 7.50% 49.67% 55.42% 51.26% 36.78%
=========== =========== =========== =========== ===========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Global Allocation Fund, Inc. (the "Fund") is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end management investment company. The Fund's
financial statements are prepared in accordance with generally
accepted accounting principles 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 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 Fund.
(a) Valuation of investments--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of Directors as
the primary market. Securities which are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written or
purchased are valued at the last sale price in the case of exchange-
traded options. In the case of options traded in the over-the-
counter market, valuation is the last asked price (options written)
or the last bid price (options purchased). Short-term securities are
valued at amortized cost, which approximates market value. Other
investments, including financial futures contracts and related
options, are stated at market value. Securities and assets for which
market value quotations are not readily 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) Repurchase agreements--The Fund invests in securities pursuant
to repurchase agreements. Under such agreements, the counterparty
agrees to repurchase the security at a mutually agreed upon time and
price. The Fund takes possession of the underlying securities, marks
to market such securities and, if necessary, receives additional
securities daily to ensure that the contract is fully
collateralized.
(c) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into US dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on
investments.
(d) Derivative financial instruments--The Fund 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.
* 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.
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
NOTES TO FINANCIAL STATEMENTS (continued)
* Options--The Fund is authorized to purchase and write covered call
and 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 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.
* 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.
(e) 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.
(f) 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 (including
amortization of discount) is recognized on the accrual basis.
Realized gains and losses on security transactions are determined on
the identified cost basis.
(g) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(h) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates.
(i) Short sales--When the Fund engages in a short sale, an amount
equal to the proceeds 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 market value of the
short sale. The Fund maintains a segregated account of securities as
collateral for the short sales. The Fund is exposed to market risk
based on the amount, if any, that the market value of the stock
exceeds the market value of the securities in the segregated
account.
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 ("MLFD" or the "Distributor"), a division of Princeton
Funds Distributor, Inc. ("PFD"), which is a wholly-owned subsidiary
of Merrill Lynch Group, Inc.
MLAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee of 0.75%, on an annual basis,
of the average daily value of the Fund's net assets. MLAM has agreed
to waive a portion of its fee payable by the Fund so that such fee
is reduced for average daily net assets of the Fund in excess of
$2.5 billion from the annual rate of 0.75% to 0.70%, from 0.70% to
0.65% for average daily net assets in excess of $5 billion, from
0.65% to 0.625% for average daily net assets in excess of $7.5
billion, and from 0.625% to 0.60% for average daily net assets in
excess of $10 billion. For the six months ended April 30, 1999, MLAM
earned fees of $32,863,992, of which $2,675,944 was voluntarily
waived. MLAM has entered into a sub-advisory agreement with Merrill
Lynch Asset Management U.K., Ltd. ("MLAM U.K."), an affiliate of
MLAM, pursuant to which MLAM pays MLAM U.K. a fee computed at the
rate of 0.10% of the average daily net assets of the Fund for
providing investment advisory services to MLAM with respect to the
Fund. For the six months ended April 30, 1999, MLAM paid MLAM U.K. a
fee of $3,999,670 pursuant to such agreement.
Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Company Act of 1940, the Fund
pays the Distributor ongoing account maintenance and distribution
fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
Account
Maintenance Fee Distribution Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML &
Co., also provides account maintenance and distribution services to
the 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 April 30, 1999, MLFD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Fund's Class A and Class D Shares as
follows:
MLFD MLPF&S
Class A $2,079 $31,302
Class D $5,991 $89,452
For the six months ended April 30, 1999, MLPR&S received contingent
deferred sales charges of $7,992,188 and $126,619 relating to
transactions in Class B and Class C Shares, respectively.
In addition, MLPF&S received $62,957 in commissions on the execution
of portfolio security transactions for the Fund for the six months
ended April 30, 1999.
For the six months ended April 30, 1999, the Fund paid Merrill Lynch
Security Pricing Service, an affiliate of MLPF&S, $61 for security
price quotations to compute the net asset value of the Fund.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is 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 April 30, 1999 were $616,221,370 and
$4,092,976,289, respectively.
Net realized gains (losses) for the six months ended April 30, 1999
and net unrealized gains (losses) as of April 30, 1999 were as
follows:
Realized Unrealized
Gains Gains
(Losses) (Losses)
Long-term investments $ 453,639,264 $ 184,821,107
Short-term investments 4,416 2,359,043
Options written 3,598,719 1,719,430
Financial futures contracts (5,568,071) 13,747,888
Forward foreign exchange contracts 45,021,385 (2,314,736)
Foreign currency transactions (10,448,128) (6,355,283)
------------- --------------
Total $ 486,247,585 $ 193,977,449
============= ==============
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
As of April 30, 1999, net unrealized appreciation for Federal income
tax purposes aggregated $188,899,580, of which $1,186,899,120
related to appreciated securities and $997,999,540 related to
depreciated securities. At April 30, 1999, the aggregate cost of
investments, net of premiums received for options written, for
Federal income tax purposes was $7,353,933,478.
Transactions in call options written for the six months ended April
30, 1999 were as follows:
Nominal Value Premiums
Covered Received
Outstanding call options written,
beginning of period 8,316,927 $ 24,104,716
Options written 1,765,000 3,376,860
Options exercised (3,239,577) (11,625,240)
Options expired (2,692,350) (6,768,837)
Options closed (2,385,000) (5,551,194)
------------- --------------
Outstanding call options written,
end of period 1,765,000 $ 3,536,305
============= ==============
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $2,954,380,739 and $1,747,724,489 for the six months ended April
30, 1999 and the year ended October 31, 1998, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the
Six Months Dollar
Ended April 30, 1999 Shares Amount
Shares sold 6,318,933 $ 83,708,988
Shares issued to shareholders in
reinvestment of dividends and
distributions 9,884,375 122,170,873
------------- ---------------
Total issued 16,203,308 205,879,861
Shares redeemed (37,222,768) (489,125,379)
------------- ---------------
Net decrease (21,019,460) $ (283,245,518)
============= ===============
Class A Shares for the
Year Ended Dollar
October 31, 1998 Shares Amount
Shares sold 18,655,199 $ 271,738,900
Shares issued to shareholders in
reinvestment of dividends and
distributions 17,209,249 244,114,543
------------- ---------------
Total issued 35,864,448 515,853,443
Shares redeemed (55,587,214) (789,412,836)
------------- ---------------
Net decrease (19,722,766) $ (273,559,393)
============= ===============
Class B Shares for the
Six Months Dollar
Ended April 30, 1999 Shares Amount
Shares sold 13,375,239 $ 173,206,837
Shares issued to shareholders in
reinvestment of dividends and
distributions 38,690,008 471,244,295
------------- ---------------
Total issued 52,065,247 644,451,132
Automatic conversion of
shares (6,727,388) (87,327,038)
Shares redeemed (217,465,568) (2,809,986,056)
------------- ---------------
Net decrease (172,127,709) $(2,252,861,962)
============= ===============
Class B Shares for the
Year Ended Dollar
October 31, 1998 Shares Amount
Shares sold 60,460,630 $ 875,915,458
Shares issued to shareholders in
reinvestment of dividends and
distributions 73,891,197 1,032,137,910
------------- ---------------
Total issued 134,351,827 1,908,053,368
Automatic conversion of shares (15,413,728) (214,503,471)
Shares redeemed (231,873,525) (3,216,714,130)
------------- ---------------
Net decrease (112,935,426) $(1,523,164,233)
============= ===============
Class C Shares for the
Six Months Dollar
Ended April 30, 1999 Shares Amount
Shares sold 1,070,191 $ 13,619,578
Shares issued to shareholders in
reinvestment of dividends and
distributions 2,942,905 35,373,718
------------- ---------------
Total issued 4,013,096 48,993,296
Shares redeemed (18,858,981) (240,611,993)
------------- ---------------
Net decrease (14,845,885) $ (191,618,697)
============= ===============
Class C Shares for the
Year Ended Dollar
October 31, 1998 Shares Amount
Shares sold 9,924,944 $ 142,791,336
Shares issued to shareholders in
reinvestment of dividends and
distributions 5,395,282 74,521,891
------------- ---------------
Total issued 15,320,226 217,313,227
Shares redeemed (19,487,655) (266,727,805)
------------- ---------------
Net decrease (4,167,429) $ (49,414,578)
============= ===============
Class D Shares for the
Six Months Dollar
Ended April 30, 1999 Shares Amount
Shares sold 4,159,931 $ 55,014,842
Automatic conversion of shares 6,622,144 87,327,038
Shares issued to shareholders in
reinvestment of dividends and
distributions 8,131,285 100,421,366
------------- ---------------
Total issued 18,913,360 242,763,246
Shares redeemed (35,725,369) (469,417,808)
------------- ---------------
Net decrease (16,812,009) $ (226,654,562)
============= ===============
Class D Shares for the
Year Ended Dollar
October 31, 1998 Shares Amount
Shares sold 14,494,815 $ 213,305,917
Automatic conversion of shares 15,180,911 214,503,471
Shares issued to shareholders in
reinvestment of dividends and
distributions 11,776,663 167,004,527
------------- ---------------
Total issued 41,452,389 594,813,915
Shares redeemed (35,025,559) (496,400,200)
------------- ---------------
Net increase 6,426,830 $ 98,413,715
============= ===============
Merrill Lynch Global Allocation Fund, Inc., April 30, 1999
COMMON STOCK PORTFOLIO CHANGES
For the Quarter Ended April 30, 1999
Additions
*Alcatel
Avalonbay Communities, Inc.
*BASF AG
*BOC Group Inc.
Bayerische Motoren Werke (BMW) AG
CGU PLC
CHS Electronics, Inc.
CONSOL Energy Inc.
Capitol Federal Financial
Compaq Computer Corporation
Equity Residential Properties Trust
Federal Realty Investment Trust
Hudson's Bay Company
*Koninklijke Pakhoed NV
*Koninklijke Ten Cate
*Misys PLC
*Nucentrix Broadband Networks, Inc.
*PT Inti Indorayon Utama Tbk
Reliant Energy, Inc.
*Rio Tinto PLC (Registered Shares)
Service Corporation International
Simon Property Group, Inc.
*Telecom Italia Mobile (TIM) SpA
Telecomunicacoes Brasileiras SA--
Telebras (Preferred Block)(ADR)
Deletions
*Alcatel
Allied Zurich PLC
Ascent Entertainment Group, Inc.
Axa
*BASF AG
*BOC Group Inc.
Baxter International Inc.
CAI Wireless Systems, Inc.
CRH PLC
Coinstar, Inc.
Foster's Brewing Group Limited
Friedman, Billings, Ramsey Group, Inc. (Class A)
The Geon Company
Houston Industries Incorporated
*Koninklijke Pakhoed NV
*Koninklijke Ten Cate
Lucas Varity PLC
*Misys PLC
*Nucentrix Broadband Networks, Inc.
Oriental Financial Group Inc.
*PT Inti Indorayon Utama Tbk
Plains Resources Inc.
Raytheon Company (Class A)
The Reader's Digest Association, Inc.
(Class A)
Reynolds Metals Company
*Rio Tinto PLC (Registered Shares)
SKF AB `A'
Sovereign Bancorp, Inc.
*Telecom Italia Mobile (TIM) SpA
TransTexas Gas Corporation
USEC Inc.
W.D. & H.O. Wills Holdings Limited
Western Wireless Corporation (Class A)
[FN]
*Added and deleted in the same quarter.
PORTFOLIO INFORMATION
Worldwide
Investments
As of 4/30/99
Breakdown of Stocks &
Fixed-Income
Securities by Percent of
Country Net Assets
United States* 39.2%
Japan 12.4
Argentina 7.6
Australia 3.0
Germany 2.9
Russia 2.9
Malaysia 2.8
Hong Kong 2.6
South Korea 2.6
Brazil 2.2
United Kingdom 2.2
France 1.8
Mexico 1.6
Netherlands 1.5
Canada 1.4
Indonesia* 1.4
China 0.9
Sweden 0.9
Italy 0.8
Singapore 0.7
Cayman Islands 0.6
Finland 0.6
Switzerland 0.6
Norway 0.5
Chile 0.5
Portugal 0.4
South Africa 0.4
Austria 0.3
Thailand 0.2
New Zealand 0.1
Philippines 0.1
Venezuela 0.1
Hungary 0.1
Turkey** 0.0
Ireland** 0.0
Spain** 0.0
[FN]
*Includes investments in short-term securities.
**Holdings are less than 0.1%.
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
Broken Hill Proprietary Company
Limited 1.3%
QUALCOMMIncorporated 1.2
Republic New York Corporation 1.0
Hutchison Whampoa Limited 0.8
Pohang Iron & Steel Company
Ltd. 0.8
Golden State Bancorp Inc. 0.8
Daiwa Securities Co. Ltd. 0.7
Security Capital Group
Incorporated (Class B) 0.7
Noble Drilling Corporation 0.7
Entergy Corporation 0.6
Ten Largest Industries Percent of
(Equity Investments) Net Assets
Banking 6.6%
Insurance 4.3
Telecommunications 3.5
Real Estate Investment Trusts 3.1
Utilities--Electric & Gas 2.8
Multi-Industry 2.0
Metals & Mining 2.0
Real Estate 1.7
Electronics 1.5
Metals--Steel 1.5
