MERRILL LYNCH
GLOBAL
ALLOCATION
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 2000
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 4/30/00
<CAPTION>
Percent of Fund's Net Assets Reference Portfolio
4/30/00 10/31/99 Percentages
<S> <C> <C> <C>
North & South American Equities 34.5%* 26.5%* 36.0%
European Equities 8.5 8.8 11.0
Pacific Basin Equities 15.2 16.9 13.0
Total Equities 58.2 52.2 60.0
US Dollar Denominated Fixed-Income Securities 23.5 29.5 24.0
US Issuers 11.7 12.1 --
Non-US Issuers 11.8 17.4 --
Non-US Dollar Denominated Fixed-Income Securities 5.0 5.4 16.0
Total Fixed-Income Securities 28.5++ 34.9++ 40.0
Cash & Cash Equivalents 13.3 12.9 --
*Includes value of Financial Futures Contracts.
++Includes Preferred Stock.
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
DEAR SHAREHOLDER
For the six-month period ended April 30, 2000, Merrill Lynch Global
Allocation Fund, Inc.'s Class A, Class B, Class C and Class D Shares
had total returns of +5.73%, +5.17%, +5.11% and +5.53%,
respectively, outperforming the Reference Portfolio's* return of
+3.25% for the same six-month period. The Fund achieved its total
returns by strongly outperforming the fixed-income components of its
Reference Portfolio, and modestly lagging the performance of its
equity components. (Fund results do not reflect sales charges and
would be lower if sales charges were included. Complete performance
information can be found on pages 6 and 7 of this report to
shareholders.)
*The unmanaged benchmark index is a weighted index comprised of 36%
of the unmanaged Standard & Poor's 500 Index, 24% Financial
Times/Standard & Poor's--Actuaries World Index (Ex-US), 24% Merrill
Lynch Government Index GA05, and 16% Salomon Brothers World
Government Bond Index (Ex-US). Descriptions of these indexes can be
found on pages 6 and 7 of this report to shareholders.
With 58.2% of Merrill Lynch Global Allocation Fund, Inc.'s net
assets invested in equities, the Fund is more closely aligned with
its Reference Portfolio weighting in equities (60%) than it has been
in several years. The Fund is underweight in fixed-income securities
with 28.5% of the Fund's net assets invested in bonds worldwide as
compared to its Reference Portfolio's weighting of 40%. During the
six-month period ended April 30, 2000, we decreased the Fund's fixed-
income weighting in US dollar-denominated bonds and increased its
exposure to the US equity markets. (For a complete breakdown, see
the "Summary of Fund's Overall Asset Mix" table on page 1 of this
report to shareholders.)
Financial markets were remarkably volatile during the period and
were marked by sector divergences, extremes of sentiment and
reversal of relative performance. The period began in the midst of a
sustained worldwide rally in growth stocks, particularly technology,
media and telecommunications (TMT) as well as biotechnology. Midway
through the six-month period, these sectors experienced a buying
climax and then began to tumble. A discernible rotation into
previously out-of-favor value sector stocks began, and most equity
market averages around the world fell well below their March highs
by the end of April.
Equity Market Review
Throughout the six-month period ended April 30, 2000, global
economic growth continued on its positive trend, as evidenced by
strong production data across the Group of Seven Industrialized
Nations and rising employment figures. The US economy enjoyed
exceptional strength and continued to benefit from a generally
strong currency.
However, oil prices moved sharply higher, lending foundation to
concerns about rising inflation. The continued growth of the US
economy resulted in cautionary measures by the US Federal Reserve
Board. For example, the Federal Reserve Board increased interest
rates because of concerns about economic overheating resulting from
strong consumption and investment demand at a time of low
unemployment. The 0.25% interest rate increase on March 21, 2000
marked the third such increase during the six-month period. European
economies also grew as unemployment in Europe continued its
declining trend and the European Central Bank revised its prediction
for growth this year upward to 3%.
The trend of stronger economic growth did not extend to Japan, where
the economy recorded two consecutive quarters of decline and
unemployment hit a new record. It is unclear whether this economic
weakness is a short-term consequence of economic restructuring or a
sign that the economy remains dependent on continued government
fiscal support. The euro and yen weakened against the US dollar
during much of the period.
During the six-month period, the performance of many stocks diverged
significantly. Technology stocks, especially those involved in
telecommunications, wireless telephony, the Internet and
biotechnology, enjoyed extraordinary gains. The advance included not
only companies with leadership positions in growing industry
segments, but also, in many cases, companies with little current
revenue and little or no profitability. A number of profitless
companies achieved market capitalizations of billions or even tens
of billions of dollars. At the same time, an increasing number of
stocks of well-established, profitable companies suffered
significant declines.
So-called "old economy" stocks, even those with well-established
profitable businesses serving critical economic needs, mostly
languished or sold off. Through most of the first calendar quarter
of 2000, the divergences in stock price performance between the
growth and value styles of investment widened sharply. This
divergence punished the performance of value investors and rewarded
growth stock investors. Some investors in the growth stock rally
sold attractively valued stocks to fund growth stock purchases. This
selling drove the prices of a number of well-positioned companies to
remarkably attractive levels. We used this opportunity to add to the
Fund's US stock holdings in out-of-favor sectors such as energy,
banking, insurance, real estate and food. Many of these purchases
were achieved at or near multi-year lows in price and valuation, at
the same time that the market averages were setting new all-time
highs.
In mid-March investors began to sell the most expensive and most
speculative stocks, and money began to flow back into attractively
priced investments. The performance of domestic value stocks as
compared to growth stocks reversed during the last six weeks of the
April period. Value stock performance as measured by the Standard
and Poor's (S&P) Barra Value Index outperformed both growth stocks
and the S&P 500 Index. However, expectations for higher inflation
and interest rates began to accelerate at the same time. These
expectations limited the absolute performance of value investments
even as their relative performance improved sharply.
During the six-month period ended April 30, 2000, we increased the
Fund's US stock position to 30.5% of net assets, decreased its
European stock position slightly to 8.5% of net assets and its
Pacific Basin equity weighting to 15.2% of net assets. Approximately
13% of the Fund's net assets were invested in convertible
securities. Although some of these securities tend to perform
somewhat like equities, they are categorized as part of the Fund's
fixed-income securities.
The increase in the Fund's US stock portfolio can be attributed to
the Fund's acquisition of a number of stocks in the energy, banking,
insurance, real estate and utility sectors. For example, we
purchased energy stocks at attractive prices and valuations even
though the underlying commodity was near a ten-year high. During the
six-month period, we sold some technology holdings that had
appreciated.
We slightly reduced the Fund's equity exposure in Europe, Asia and
Japan, taking profits in some technology and telecommunications
issues. Specifically, in Asia, we sold most of the Fund's SK Telecom
Co. Ltd. position and about half of our position in Hutchison
Whampoa Limited. As we slightly decreased the Fund's exposure in
Japan, we took profits in several holdings, most notably Daiwa
Securities Group Inc. and Murata Manufacturing Co., Ltd.
Fixed-Income Market Review
Bond markets worldwide performed rather poorly throughout this
period as a result of rising interest rates and rising credit
spreads. Early in the period, interest rates moved higher, despite
most central banks providing liquidity to soften perceived Year 2000
concerns. Most of the world's bond markets began the six-month
period ended April 30, 2000 in a state of decline that gave way to
stronger performance in the month of March. The period saw little
net improvement in the highest-quality bond markets.
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
As we noted, the fixed-income components of the Fund's benchmark
dramatically underperformed the Fund's six-month returns. The US
Treasury five-year note returned +0.46% for the six-month period
ended April 30, 2000, while the unmanaged Salomon US World
Government Bond Index (Ex-US) returned -6.86% (measured in US
dollars). During the period, we decreased the Fund's fixed-income
holdings in almost every sector. Fixed-income holdings as a
percentage of net assets generally declined from 34.9% of net assets
to 28.5%. We added a few high-quality euro-denominated fixed-income
investments of sovereign and supranational issuers.
We sold several emerging market fixed-income positions into price
strength, including most of the Fund's exposure to Mexican and
Russian issuers. We realized handsome profits during the period in
bonds of the City of St. Petersburg and Mosenergo Finance BV (the
finance arm of the electric utility for the City of Moscow).
However, Russian debt has never represented more than a small
percentage of the Fund, and given the extraordinary appreciation in
Russian debt prices, we reduced holdings from 1.1% of net assets at
the beginning of the period to 0.3% of net assets on April 30, 2000.
On April 30, 2000, the Fund's combined fixed-income and equity net
weighting in the US dollar was 73.3%, including both dollar-
denominated assets and the portion of assets hedged back into US
dollars. The Fund's cash and cash equivalent position was slightly
higher at 13.3% of net assets as of April 30, 2000.
In Conclusion
We thank you for your investment in Merrill Lynch Global Allocation
Fund, Inc., and we look forward to reviewing our outlook and
strategy with you in our annual 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
(Dennis Stattman)
Dennis Stattman
Vice President and
Portfolio Manager
June 13, 2000
We are pleased to announce that Dennis Stattman has been named
Portfolio Manager of Merrill Lynch Global Allocation Fund, Inc. Mr.
Stattman has been a Portfolio Manager in Merrill Lynch Asset
Management, L.P. since 1989.
PORTFOLIO INFORMATION
Worldwide
Investments
As of 4/30/00
Breakdown of Stocks &
Fixed-Income Securities by Percent of
Country Net Assets
United States* 43.7%
Japan 12.9
United Kingdom 4.7
Malaysia 3.0
Germany 2.3
Australia 2.3
Canada 2.0
Brazil 2.0
Argentina 2.0
South Korea 1.6
France 1.5
Hong Kong 1.4
Netherlands 1.3
Indonesia 1.2
Cayman Islands 0.9
Bermuda 0.8
China 0.6
Singapore 0.5
South Africa 0.5
Portugal 0.5
Finland 0.4
Italy 0.4
Chile 0.3
Russia 0.3
Israel 0.2
Mexico 0.2
Sweden 0.2
Austria 0.2
Spain 0.1
New Zealand 0.1
Hungary 0.1
Switzerland** 0.0
Norway** 0.0
Ireland** 0.0
Philippines** 0.0
Thailand** 0.0
*Includes investments in short-term securities.
**Holdings are less than 0.1%.
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
Canon, Inc. 1.0%
Broken Hill Proprietary Company
Limited 0.9
Beneficial Interest in the
Liquidating Trust of Geotek
Communications, Inc. (Units) 0.9
Security Capital Group
Incorporated (Class B) 0.8
Daiwa Securities Group Inc. 0.8
The Sumitomo Marine & Fire
Insurance Co., Ltd. 0.8
Suzuki Motor Corporation 0.7
Ace Limited 0.6
Noble Drilling Corporation 0.6
Entergy Corporation 0.6
Ten Largest Industries Percent of
(Equity Investments) Net Assets
Insurance 6.5%
Banking 4.4
Telecommunications 4.1
Energy & Petroleum 3.3
Real Estate Investment Trusts 3.2
Real Estate 2.5
Financial Services 2.2
Utilities--Electric 2.0
Healthcare Services 1.8
Utilities--Electric & Gas 1.8
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
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. The Fund's Investment Adviser voluntarily waived a
portion of its management fee. Without such a waiver, the Fund's
performance would have been lower.
</TABLE>
<TABLE>
Recent
Performance
Results
<CAPTION>
Ten Years/
6-Month 12-Month Since Inception
As of April 30, 2000 Total Return Total Return Total Return
<S> <C> <C> <C>
ML Global Allocation Fund, Inc.--Class A Shares* +5.73% +10.15% +269.31%
ML Global Allocation Fund, Inc.--Class B Shares* +5.17 + 8.97 +233.38
ML Global Allocation Fund, Inc.--Class C Shares* +5.11 + 8.96 + 89.29
ML Global Allocation Fund, Inc.--Class D Shares* +5.53 + 9.81 + 97.70
US Stocks: Standard & Poor's 500 Index** +7.19 +10.13 +458.94/+246.32
Non-US Stocks: Financial Times/Standard & Poor's--
Actuaries World Index (Ex-US)*** +6.64 +15.57 +134.01/+64.68
US Bonds: ML Treasury Index GA05**** +0.46 + 0.05 + 97.46/+39.90
Non-US Bonds: Salomon Brothers World Government
Bond Index (Ex-US)***** -6.86 - 5.57 +129.36/+22.99
*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 are for ten years for Class
A & Class B Shares and from 10/21/94 for Class C & Class D Shares.
**An unmanaged broad-based index comprised of common stocks. Ten
years/since inception total returns are for ten years and from
10/21/94, 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 ten years and from
10/21/94, 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 ten years and from 10/21/94, respectively.
*****An unmanaged market capitalization-weighted index tracking ten
government bond indexes, excluding the United States. Ten
years/since inception total returns are for ten years and from
10/21/94, respectively.
Average Annual
Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/00 +21.54% +15.16%
Five Years Ended 3/31/00 +15.36 +14.13
Ten Years Ended 3/31/00 +14.04 +13.43
*Maximum sales charge is 5.25%. (Prior to October 21, 1994, Class A
Shares were offered at a higher sales charge. Thus, actual returns
would have been lower than shown for the ten-year period.)
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/00 +20.37% +16.37%
Five Years Ended 3/31/00 +14.20 +14.20
Ten Years Ended 3/31/00 +12.88 +12.88
*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 3/31/00 +20.34% +19.34%
Five Years Ended 3/31/00 +14.20 +14.20
Inception (10/21/94) through 3/31/00 +12.80 +12.80
<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 3/31/00 +21.18% +14.82%
Five Years Ended 3/31/00 +15.08 +13.85
Inception (10/21/94) through 3/31/00 +13.68 +12.56
<FN>
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
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
CHF Swiss Franc
EUR Euro
GBP Great Britain Pound
JPY Japanese Yen
NZD New Zealand Dollar
SEK Swedish Kroner
USD United States Dollar
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Value Net Assets
<S> <S> <C> <S> <C> <C>
Argentina Banking 467,900 Banco Frances SA (ADR)++ (USD) $ 9,241,025 0.2%
2,105,900 Banco Rio de la Plata SA (ADR)++ (USD) 29,219,363 0.4
Total Common Stocks in Argentina 38,460,388 0.6
Australia Foods 5,566,000 Goodman Fielder Limited 4,124,656 0.1
Insurance 15,827,044 HIH Insurance Limited 11,359,149 0.2
Metals & Mining 10,321,100 Normandy Mining Limited 5,119,008 0.1
25,900,927 Pasminco Limited (f) 13,601,872 0.2
8,265,000 WMC Limited 34,288,882 0.5
--------------- ------
53,009,762 0.8
Multi-Industry 2,193,982 Lend Lease Corporation Limited 23,755,178 0.3
2,300,000 Pacific Dunlop Limited 1,932,552 0.0
--------------- ------
25,687,730 0.3
Resources 6,001,890 Broken Hill Proprietary Company Limited 64,578,776 0.9
Total Common Stocks in Australia 158,760,073 2.3
Austria Banking 203,400 Bank Austria AG 9,045,491 0.1
Total Common Stocks in Austria 9,045,491 0.1
Bermuda Insurance 1,700,000 Ace Limited 40,693,750 0.6
384,400 XL Capital Ltd. (Class A) 18,307,050 0.2
Total Common Stocks in Bermuda 59,000,800 0.8
Brazil Telecommunications 32,318 Tele Norte Leste Participacoes SA (ADR)++ (USD) 575,658 0.0
276,000 Telecomunicacoes Brasileiras SA--Telebras
(Preferred Block) (ADR)++ (USD) 32,619,750 0.5
Total Common Stocks in Brazil 33,195,408 0.5
Canada Beverages 1,425,000 Cott Corporation (USD)(f) 7,436,719 0.1
Insurance 459,300 Industrial Alliance Life Insurance Company (f) 6,354,626 0.1
Metals--Non-Ferrous 800,000 Inco Limited (USD)(f) 12,500,000 0.2
Real Estate 616,000 Canada Life Financial Corporation 11,058,649 0.2
1,800,000 TrizecHahn Corporation 29,250,000 0.4
--------------- ------
40,308,649 0.6
Retail Stores 1,365,500 Hudson's Bay Company 16,219,748 0.2
Telecommunications 1,165,200 Rogers Cantel Mobile Communications Inc. 'B' (f)(j) 36,410,043 0.5
681,300 Rogers Cantel Mobile Communications Inc. 'B'
(USD)(f)(j) 21,546,113 0.3
--------------- ------
57,956,156 0.8
Total Common Stocks in Canada 140,775,898 2.0
Finland Metals 343,705 Outokumpu Oyj 4,056,178 0.1
Paper & Forest 1,357,104 Metsa-Serla Oyj 'B' 11,538,680 0.1
Products 658,713 Stora Enso Oyj 'R' 6,813,237 0.1
215,856 UPM-Kymmene Oyj 5,606,223 0.1
--------------- ------
23,958,140 0.3
Total Common Stocks in Finland 28,014,318 0.4
France Banking 126,401 Banque Nationale de Paris (BNP) 10,240,323 0.1
23,750 Societe Generale 'A' (f) 4,930,361 0.1
--------------- ------
15,170,684 0.2
Building & 49,513 Compagnie de Saint Gobain 6,772,692 0.1
Construction
Chemicals 102,503 Aventis SA 5,651,365 0.1
219,553 Aventis SA(f) 12,144,774 0.2
--------------- ------
17,796,139 0.3
Diversified 26,334 Vivendi 2,611,001 0.0
Insurance 277,598 CNP Assurances 8,110,380 0.1
Metals--Steel 428,379 Usinor SA 5,641,017 0.1
Multi-Industry 32,214 Societe Eurafrance SA 14,091,177 0.2
Telecommunications 244,500 Alcatel (ADR)++ (USD) 11,109,469 0.2
25,470 France Telecom SA 3,950,480 0.0
--------------- ------
15,059,949 0.2
Total Common Stocks in France 85,253,039 1.2
Germany Banking 117,727 Deutsche Bank AG (Registered Shares) 7,928,333 0.1
91,135 HypoVereinsbank 5,655,795 0.1
--------------- ------
13,584,128 0.2
Capital Goods 268,055 Kloeckner-Werke AG 5,313,058 0.1
Chemicals 132,529 Bayer AG 5,501,241 0.1
101,451 Henkel KGaA 5,288,271 0.1
--------------- ------
10,789,512 0.2
Metals--Steel 523,142 Thyssen Krupp AG 10,988,841 0.1
Multi-Industry 350,000 RWE AG 11,291,007 0.2
Retail Stores 87,532 Metro AG 3,330,310 0.0
Telecommunications 134,677 Deutsche Telekom AG (Registered Shares) 8,652,546 0.1
Utilities 235,067 Veba AG 11,642,670 0.2
Total Common Stocks in Germany 75,592,072 1.1
Hong Kong Banking 1,121,657 HSBC Holdings PLC 12,564,137 0.2
Multi-Industry 2,550,000 Hutchison Whampoa Limited 36,993,530 0.5
Total Common Stocks in Hong Kong 49,557,667 0.7
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Value Net Assets
<S> <S> <C> <S> <C> <C>
Hungary Oil & Gas Producers 232,571 MOL Magyar Olaj-es Gazipari Rt. (GDR)++++
(USD)(f) $ 4,069,993 0.1%
Total Common Stocks in Hungary 4,069,993 0.1
Indonesia Paper & Pulp 2,552,800 Asia Pacific Resources International
Holdings Ltd. 'A' (f) 3,191,000 0.0
553,765 Asia Pulp & Paper Company Ltd. (ADR)++ (USD) (f) 3,495,642 0.1
110,753 Asia Pulp & Paper Company Ltd. (Warrants)(a) 19,036 0.0
--------------- ------
6,705,678 0.1
Tobacco 17,332,000 PT Hanjaya Mandala Sampoerna Tbk 25,095,861 0.4
Total Common Stocks in Indonesia 31,801,539 0.5
Israel Telecommunications 507,500 ECI Telecom Limited (US Registered Shares)(USD) 13,987,969 0.2
Total Common Stocks in Israel 13,987,969 0.2
Italy Insurance 316,217 Assicurazioni Generali 9,019,676 0.2
Oil & Gas Producers 1,678,249 ENI SpA 8,365,754 0.1
Telecommunications 1,421,192 Telecom Italia SpA (Registered Shares) 8,975,267 0.1
Total Common Stocks in Italy 26,360,697 0.4
Japan Automobiles & 3,282,000 Suzuki Motor Corporation 48,861,790 0.7
Equipment
Banking 201,000 The Asahi Bank, Ltd. 967,106 0.0
Banking & Financial 1,720,000 Shinko Securities Co., Ltd. 7,527,735 0.1
Beverages 1,500,000 Chukyo Coca-Cola Bottling Co., Ltd. 14,503,817 0.2
539,200 Coca-Cola West Japan Company Limited 14,967,384 0.2
603,000 Hokkaido Coca-Cola Bottling Co., Ltd. 6,918,529 0.1
691,000 Kinki Coca-Cola Bottling Co., Ltd. 8,855,286 0.1
1,143,000 Mikuni Coca-Cola Bottling 15,546,704 0.2
--------------- ------
60,791,720 0.8
Capital Goods 12,900,000 Kawasaki Heavy Industries Ltd. (f) 14,442,748 0.2
7,875,000 Mitsubishi Heavy Industries, Ltd. 24,482,998 0.4
--------------- ------
38,925,746 0.6
Electrical 1,157,000 Chudenko Corporation 16,058,293 0.2
Construction 3,018,000 Kinden Corporation 18,821,485 0.3
--------------- ------
34,879,778 0.5
Electrical 103,000 Murata Manufacturing Co., Ltd. 20,013,879 0.3
Equipment
Electronics 1,299,000 Hitachi Ltd. 15,505,066 0.2
Financial Services 3,720,000 Daiwa Securities Group Inc. 56,793,893 0.8
927,000 Kokusai Securities Co., Ltd. 13,209,160 0.2
835,000 The Nomura Securities Co., Ltd. 21,015,036 0.3
--------------- ------
91,018,089 1.3
Industrial 28,000 Miura Co., Ltd. 328,254 0.1
Insurance 1,814,000 The Chiyoda Fire & Marine Insurance Company,
Limited 4,985,038 0.1
7,029,000 The Dai-Tokyo Fire and Marine Insurance Co., Ltd. 19,056,183 0.3
1,179,000 The Dowa Fire & Marine Insurance Co., Ltd. 2,934,545 0.0
2,879,000 The Fuji Fire and Marine Insurance Company, Limited 5,434,337 0.1
7,165,000 The Koa Fire & Marine Insurance Co., Ltd. 18,894,518 0.3
3,765,000 Mitsui Marine and Fire Insurance Company, Ltd. 16,547,536 0.2
6,111,000 The Nichido Fire & Marine Insurance Co., Ltd. 27,706,593 0.4
5,834,000 The Nippon Fire & Marine Insurance Co., Ltd. 15,924,404 0.2
999,000 The Nisshin Fire and Marine Insurance Company,
Limited 2,264,677 0.0
10,415,000 The Sumitomo Marine & Fire Insurance Co., Ltd. 54,929,910 0.8
2,713,000 The Tokio Marine & Fire Insurance Co. Ltd. 26,458,496 0.4
7,806,000 The Yasuda Fire & Marine Insurance Co. Ltd. 31,563,470 0.5
--------------- ------
226,699,707 3.3
Office Equipment 1,457,000 Canon, Inc. 66,598,011 1.0
Packaging & 1,103,000 Toyo Seikan Kaisha, Ltd. 19,493,222 0.3
Containers
Pharmaceuticals 1,261,000 Sankyo Company, Ltd. 27,769,419 0.4
384,000 Taisho Pharmaceutical Company, Ltd. 12,862,179 0.2
40,631,598 0.6
Restaurants 647,000 Mos Food Service, Inc. 6,214,074 0.1
618,000 Ohsho Food Service 7,376,544 0.1
13,590,618 0.2
Retail Stores 460,000 Ito-Yokado Co., Ltd. 33,582,235 0.5
100,000 Sangetsu Co., Ltd. 1,739,533 0.0
--------------- ------
35,321,768 0.5
Telecommunications 714 Nippon Telegraph & Telephone Corporation (NTT) 8,852,741 0.1
Total Common Stocks in Japan 730,006,828 10.6
Mexico Foods 700,000 Grupo Industrial Maseca, SA de CV (ADR)++ (USD) 4,987,500 0.1
Total Common Stocks in Mexico 4,987,500 0.1
Netherlands Chemicals 311,668 Akzo Nobel NV 12,789,558 0.2
213,132 European Vinyls Corporation International NV (f) 2,524,953 0.0
--------------- ------
15,314,511 0.2
Foods 41,999 Koninklijke Ahold NV 981,720 0.0
Insurance 133,000 ING Groep NV 7,274,598 0.1
Packaging 216,754 Buhrmann NV 5,599,917 0.1
Real Estate 186,600 Security Capital U.S. Realty (ADR)++ (USD)(f) 2,962,275 0.0
2,210,960 Security Capital U.S. Realty (USD)(f) 34,712,072 0.6
--------------- ------
37,674,347 0.6
Steel 600,655 Ispat International NV (NY Registered Shares) (USD) 7,020,155 0.1
Total Common Stocks in the Netherlands 73,865,248 1.1
New Natural Gas Suppliers 408,787 Natural Gas Corporation Holdings Limited 240,490 0.0
Zealand
Total Common Stocks in New Zealand 240,490 0.0
Norway Computer Software 320,413 Merkantildata ASA 2,202,459 0.0
Total Common Stocks in Norway 2,202,459 0.0
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Value Net Assets
<S> <S> <C> <S> <C> <C>
Philippines Multi-Industry 7,602,624 Ayala Corporation $ 1,731,008 0.0%
Total Common Stocks in the Philippines 1,731,008 0.0
Portugal Banking 2,921,860 Banco Comercial Portugues, SA (BCP) (Registered
Shares) 13,739,486 0.2
Total Common Stocks in Portugal 13,739,486 0.2
Russia Telecommunications 74,500 Metromedia International (Warrants) (a)(USD) 7,450 0.0
18,700 Metromedia International (Warrants) (a)(USD) 1,870 0.0
74,500 Metromedia International (Warrants) (a)(USD) 7,450 0.0
Total Common Stocks in Russia 16,770 0.0
South Metals--Steel 375,000 Pohang Iron & Steel Company Ltd. 29,917,549 0.4
Korea
Telecommunications 18,840 SK Telecom Co. Ltd. 5,008,155 0.1
100,000 SK Telecom Co. Ltd. (ADR)++ (USD)(i) 3,206,250 0.1
--------------- ------
8,214,405 0.2
Total Common Stocks in South Korea 38,131,954 0.6
Spain Insurance 66,778 Corporacion Mapfre 1,013,841 0.0
Telecommunications 155,439 Telefonica SA (f) 3,467,630 0.0
Utilities--Electric 169,142 Endesa SA 3,677,759 0.1
Total Common Stocks in Spain 8,159,230 0.1
Sweden Appliances 198,135 Electrolux AB 'B' 3,352,781 0.1
Metals--Steel 901,522 Avesta Sheffield AB (f) 3,202,100 0.0
Multi-Industry 192,784 Svedala Industri AB 2,627,013 0.0
Paper & Forest 160,787 Holmen AB 'B' 3,780,371 0.1
Products
Total Common Stocks in Sweden 12,962,265 0.2
Switzerland Banking 20,222 Banque Cantonale de Geneve (BCG) 2,973,651 0.0
Total Common Stocks in Switzerland 2,973,651 0.0
United Aerospace 1,973,375 Rolls-Royce PLC 7,341,571 0.1
Kingdom
Banking 424,290 Barclays PLC 10,901,714 0.1
1,266,767 Lloyds TSB Group PLC 12,448,448 0.2
--------------- ------
23,350,162 0.3
Building 325,351 Jarvis PLC 735,663 0.0
& Construction
Diversified 2,060,891 Rentokil Initial PLC 5,667,731 0.1
Companies
Energy 1,996,536 British Energy PLC 5,342,347 0.1
Financial Services 735,435 Abbey National PLC 8,418,166 0.1
920,035 Alliance & Leicester PLC 9,163,504 0.1
--------------- ------
17,581,670 0.2
Food & Beverage 1,369,156 Allied Domecq PLC 6,743,378 0.1
993,654 Bass PLC 11,677,072 0.2
1,069,986 Diageo PLC 8,698,062 0.1
--------------- ------
27,118,512 0.4
Food Merchandising 1,362,425 J Sainsbury PLC 7,163,260 0.1
Foods/ 973,821 Associated British Foods PLC 5,790,573 0.1
Food Processing 609,044 Cadbury Schweppes PLC 4,183,811 0.1
4,179,009 Unilever PLC 25,192,704 0.3
--------------- ------
35,167,088 0.5
Holding Companies 1,349,209 Invensys PLC 6,492,070 0.1
Insurance 378,527 Allied Zurich PLC 3,776,034 0.1
620,845 CGU PLC 8,923,211 0.1
209,480 Norwich Union PLC 1,437,378 0.0
23,587 Prudential Corporation PLC 363,922 0.0
1,934,515 Royal & Sun Alliance Insurance Group PLC 10,852,258 0.2
--------------- ------
25,352,803 0.4
Mortgages 489,278 Northern Rock PLC 2,534,210 0.0
Oil--Related 2,046,720 BP Amoco PLC 17,759,013 0.3
Restaurants & Food 1,284,594 Whitbread PLC 11,553,238 0.2
Service
Retail--Food 332,544 Kingfisher PLC 2,735,818 0.0
1,610,493 Safeway PLC 5,456,015 0.1
--------------- ------
8,191,833 0.1
Retail Stores 301,675 Signet Group PLC (ADR)++ (USD) 7,918,969 0.1
Telecommunications 379,175 British Telecommunications PLC 6,829,263 0.1
230,395 Cable & Wireless PLC 3,832,350 0.0
4,105,404 Vodafone AirTouch PLC 18,919,081 0.3
--------------- ------
29,580,694 0.4
Tobacco 697,377 British American Tobacco PLC 4,236,800 0.1
Total Common Stocks in the United Kingdom 243,087,634 3.5
United Aerospace & Defense 375,000 Litton Industries, Inc. (f) 16,289,062 0.2
States 882,700 Raytheon Company (Class A) 20,246,931 0.3
414,100 Raytheon Company (Class B) 9,187,844 0.1
--------------- ------
45,723,837 0.6
Banking 640,810 Banco Santander Puerto Rico 7,849,922 0.1
750,000 Bank One Corporation 22,875,000 0.3
400,000 Charter One Financial, Inc. 8,125,000 0.1
549,500 Dime Bancorp, Inc. 10,303,125 0.1
1,569,600 East West Bancorp, Inc. 19,521,900 0.3
2,310,939 Golden State Bancorp Inc. (f) 35,530,687 0.5
2,940,239 Golden State Bancorp Inc. "Litigation Tracking"
(Warrants) (a) 3,032,121 0.0
770,194 Golden State Bancorp Inc. (Warrants) (a) 3,369,599 0.0
161,900 Hudson United Bancorp 3,652,869 0.1
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Value Net Assets
<S> <S> <C> <S> <C> <C>
United Banking 1,170,000 KeyCorp $ 21,645,000 0.3%
States (concluded) 1,035,000 Mellon Financial Corporation 33,249,375 0.5
(continued) 434,000 National City Corporation 7,378,000 0.1
670,500 Riggs National Corporation 9,093,656 0.1
200,000 U.S. Bancorp 4,062,500 0.1
--------------- ------
189,688,754 2.6
Business Data 1,797,600 Information Resources, Inc. (f)(j) 11,347,350 0.2
Services
Chemicals 500,000 IMC Global Inc. 7,718,750 0.1
Coal 2,500,000 CONSOL Energy Inc. 25,937,500 0.4
Commercial Services 380,000 Billing Concepts Corp. (f) 2,018,750 0.0
910,081 Cendant Corporation (f) 14,049,375 0.2
--------------- ------
16,068,125 0.2
Computer Software 155,000 FileNET Corporation (f) 4,495,000 0.1
110,000 Hyperion Solutions Corporation (f) 3,327,500 0.0
1,506,000 Inprise Corporation (f) 7,906,500 0.1
--------------- ------
15,729,000 0.2
Computers & 550,000 Compaq Computer Corporation 16,087,500 0.2
Technology 1,500,000 Silicon Graphics, Inc. (f) 10,781,250 0.2
--------------- ------
26,868,750 0.4
Construction 200,000 Hovnanian Enterprises, Inc. (Class A)(f) 1,175,000 0.0
& Housing
Containers 2,000,000 Crown Cork & Seal Company, Inc. 32,500,000 0.5
Electronics 330,000 Advanced Micro Devices, Inc. (f) 28,957,500 0.4
350,000 Benchmark Electronics, Inc. (f) 14,065,625 0.2
1,800,000 Checkpoint Systems, Inc. (f)(j) 16,087,500 0.2
501,500 Imation Corp. (f) 14,073,344 0.2
29,200 Intel Corporation 3,702,925 0.1
1,900,000 Iomega Corporation (f) 6,768,750 0.1
750,000 Komag, Incorporated (f) 2,179,687 0.0
532,800 Silicon Valley Group, Inc. (f) 15,151,500 0.2
--------------- ------
100,986,831 1.4
Energy & Petroleum 206,000 Anadarko Petroleum Corporation 8,948,125 0.1
1,817,500 Arch Coal, Inc. 9,769,062 0.1
337,000 Burlington Resources Inc. 13,248,312 0.2
216,000 Chevron Corporation 18,387,000 0.3
1,250,000 Key Energy Services, Inc. (f) 12,187,500 0.2
46,400 Mitchell Energy & Development Corp. (Class A) 1,107,800 0.0
174,350 Mitchell Energy & Development Corp. (Class B) 4,173,503 0.1
86,600 Murphy Oil Corporation 5,109,400 0.1
272,000 Noble Affiliates, Inc. 9,809,000 0.1
1,700,000 Occidental Petroleum Corporation 36,443,750 0.5
305,000 Ocean Energy Inc. (f) 3,945,937 0.1
800,000 Rowan Companies, Inc. (f) 22,350,000 0.3
1,402,978 Santa Fe Snyder Corporation (f) 12,889,860 0.2
600,000 Tom Brown, Inc. (f) 11,362,500 0.2
1,247,000 USX-Marathon Group 29,070,688 0.4
864,000 Unocal Corporation 27,918,000 0.4
--------------- ------
226,720,437 3.3
Financial Services 750,000 MetLife, Inc. (f) 12,421,875 0.2
741,200 Ugly Duckling Corporation (f) 5,605,325 0.1
--------------- ------
18,027,200 0.3
Foods 1,848,300 Tyson Foods, Inc. (Class A) 19,291,631 0.3
Forest Products 648,400 Deltic Timber Corporation (j) 14,264,800 0.2
Gaming 1,235,000 Scientific Games Holdings Corp. (f)(j) 22,847,500 0.3
Healthcare 590,000 Aetna Inc. 34,146,250 0.5
Services 7,700,000 Beverly Enterprises, Inc. (f)(j) 25,987,500 0.4
327,700 CIGNA Corporation 26,134,075 0.4
1,660,000 Oxford Health Plans, Inc. (f) 31,540,000 0.5
803,600 Sierra Health Services, Inc. (f) 2,862,825 0.0
--------------- ------
120,670,650 1.8
High Technology 8,500 Republic Technologies (Warrants)(a) 85 0.0
Industrial 2,442,500 Rouge Industries, Inc. (Class A) 13,891,719 0.2
Insurance 950,000 The Allstate Corporation 22,443,750 0.3
1,000,000 Horace Mann Educators Corporation 14,562,500 0.2
1,447,700 John Hancock Financial Services, Inc. (f) 26,420,525 0.4
1,766,400 Risk Capital Holdings, Inc. (f)(j) 28,041,600 0.4
200,000 UnumProvident Corporation 3,400,000 0.0
--------------- ------
94,868,375 1.3
Machinery 1,154,500 AGCO Corporation 13,709,687 0.2
500,000 Chicago Bridge & Iron Company NV (NY Registered
Shares) 7,593,750 0.1
530,000 Flowserve Corporation 7,486,250 0.1
225,000 Grant Prideco, Inc. (f) 4,331,250 0.1
1,750,000 McDermott International, Inc. 14,218,750 0.2
225,000 Weatherford International, Inc. (f) 9,140,625 0.1
--------------- ------
56,480,312 0.8
Medical Equipment 350,000 Packard BioScience Company (f) 4,156,250 0.1
Metals & Mining 180,000 Alcoa Inc. 11,677,500 0.2
1,723,400 Battle Mountain Gold Company (f) 3,554,512 0.1
612,000 Commonwealth Industries, Inc. 4,532,625 0.1
210,519 Freeport-McMoRan Copper & Gold, Inc. (Class B) (f) 2,026,245 0.0
1,450,000 Newmont Mining Corporation 33,984,375 0.5
--------------- ------
55,775,257 0.9
Metals--Steel 15,000 Bar Technologies Ltd. (Warrants) (a)(i) 15,000 0.0
285,700 Nucor Corporation 12,285,100 0.2
800,000 The Timken Company 14,800,000 0.2
991,800 Worthington Industries, Inc. 12,273,525 0.2
--------------- ------
39,373,625 0.6
Multi-Industry 90,000 Loews Corporation 4,961,250 0.1
Office Equipment 500,000 Xerox Corporation 13,218,750 0.2
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Value Net Assets
<S> <S> <C> <S> <C> <C>
United Oil Services 249,000 Baker Hughes Incorporated $ 7,921,312 0.1%
States 600,000 Diamond Offshore Drilling, Inc. 24,187,500 0.3
(concluded) 1,218,000 Input/Output, Inc. (f) 8,982,750 0.1
1,000,000 Noble Drilling Corporation (f) 39,937,500 0.6
75,000 Schlumberger Limited 5,742,188 0.1
300,000 Tidewater Inc. 8,925,000 0.1
201,900 Veritas DGC Inc. (f) 4,845,600 0.1
--------------- ------
100,541,850 1.4
Paper 434,200 Boise Cascade Corporation 14,138,637 0.2
1,030,400 Louisiana-Pacific Corporation 13,781,600 0.2
1,233,000 Packaging Corp. of America (f) 14,641,875 0.2
--------------- ------
42,562,112 0.6
Real Estate 100 M/O Holdings LLC (OTAE) 6,500,000 0.1
15,200 Security Capital Group Incorporated (Class A) (f)(j) 11,248,000 0.2
3,822,800 Security Capital Group Incorporated (Class B) (f)(j) 57,342,000 0.8
445,400 The St. Joe Company 12,833,088 0.2
--------------- ------
87,923,088 1.3
Real Estate 1,598,300 AMB Property Corporation 35,262,494 0.5
Investment 1,972,900 Anthracite Capital, Inc. (j) 14,056,912 0.2
Trusts 300,000 Avalonbay Communities, Inc. 11,737,500 0.2
416,000 CarrAmerica Realty Corporation 9,880,000 0.1
2,494,465 Catellus Development Corporation (f) 32,428,045 0.5
187,808 CenterPoint Properties Corporation 6,737,612 0.1
650,000 Equity Office Properties Trust 17,671,875 0.3
250,000 Equity Residential Properties Trust 11,375,000 0.2
500,000 Federal Realty Investment Trust 10,625,000 0.2
10,502,500 Meditrust Companies (j) 21,005,000 0.3
1,524,400 Nationwide Health Properties, Inc. 20,198,300 0.3
2,039,825 Prime Retail, Inc. 3,314,716 0.0
500,000 Simon Property Group, Inc. 12,687,500 0.2
700,000 United Dominion Realty Trust, Inc. 7,000,000 0.1
--------------- ------
213,979,954 3.2
Retail Stores 800,000 Heilig-Meyers Company 2,450,000 0.0
300,000 J. Baker, Inc. 1,931,250 0.0
700,000 Toys 'R' Us, Inc. (f) 10,675,000 0.2
--------------- ------
15,056,250 0.2
Telecommunications 200,000 Allen Telecom Inc. (f) 3,550,000 0.1
118,922 Beneficial Interest in the Liquidating Trust of
Geotek Communications, Inc. (Units)(n) 63,028,660 0.9
40,000 Centennial Communications Corporation (Warrants) (a) 400 0.0
2,770,200 General Communication, Inc. (Class A) (f)(j) 13,677,862 0.2
5,750 Metricom Inc. (Warrants) (a) 115,000 0.0
2,024,000 Metromedia International Group, Inc. (f) 10,120,000 0.1
150,000 QUALCOMM Incorporated (f) 16,265,625 0.2
--------------- ------
106,757,547 1.5
Textiles 4,820,700 Burlington Industries, Inc. (f)(j) 21,090,562 0.3
429,000 Unifi, Inc. (f) 4,370,438 0.1
--------------- ------
25,461,000 0.4
Tobacco 3,001,900 DIMON Incorporated (j) 7,129,512 0.1
Transportation 800,000 Airborne Freight Corporation 17,150,000 0.2
776,500 J.B. Hunt Transport Services, Inc. 12,763,719 0.2
876,900 Union Pacific Corporation 36,939,413 0.5
--------------- ------
66,853,132 0.9
Utilities 800,000 Edison International 15,250,000 0.2
--Electric 3,500,000 El Paso Electric Company (f)(j) 38,718,750 0.6
1,560,000 Entergy Corporation 39,682,500 0.6
600,000 FPL Group, Inc. 27,112,500 0.4
150,000 PECO Energy Company 6,253,125 0.1
--------------- ------
127,016,875 1.9
Utilities 250,000 New Century Energies, Inc. 8,156,250 0.1
--Electric 1,410,000 Niagara Mohawk Holdings Inc. (f) 19,563,750 0.3
& Gas 548,500 Northern States Power Company 11,964,156 0.2
500,000 Potomac Electric Power Company 11,718,750 0.2
1,057,900 Reliant Energy, Inc. 28,166,588 0.4
650,000 Texas Utilities Company 21,896,875 0.3
458,800 Unicom Corporation 18,237,300 0.3
--------------- ------
119,703,669 1.8
Waste Management 900,000 Waste Management, Inc. 14,287,500 0.2
Total Common Stocks in the United States 2,105,564,227 30.5
Total Investments in Common Stocks
(Cost--$3,906,716,198) 3,991,544,102 57.8
Equity Closed-End Funds
Austria Financial Services 320,000 The Austria Fund (USD) 3,580,000 0.1
Total Equity Closed-End Funds in Austria 3,580,000 0.1
Indonesia Financial Services 25,600 Jakarta Growth Fund (USD) (f) 48,000 0.0
Total Equity Closed-End Funds in Indonesia 48,000 0.0
Ireland Financial Services 150,000 Irish Investment Fund (USD) 2,184,375 0.0
Total Equity Closed-End Funds in Ireland 2,184,375 0.0
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks Value Net Assets
<S> <S> <C> <S> <C> <C>
South Financial Services 81,262 Fidelity Advisor Korea Fund (USD) (f) $ 822,778 0.0%
Korea 200,000 Korea Equity Fund (USD) (f) 712,500 0.0
1,400,528 Korea Fund (USD) (f) 17,419,067 0.3
200,000 Korean Investment Fund (USD) (f) 1,287,500 0.0
Total Equity Closed-End Funds in South Korea 20,241,845 0.3
Total Investments in Equity Closed-End Funds
(Cost--$27,373,198) 26,054,220 0.4
Preferred Stocks
Australia Banking & Financial 130,000 National Australia Bank (USD) 3,241,875 0.0
Total Preferred Stocks in Australia 3,241,875 0.0
Cayman Finance 3,440,000,000 TB Finance (Cayman) Ltd. (JPY) 22,201,249 0.3
Islands
Total Preferred Stocks in the Cayman Islands 22,201,249 0.3
Germany Chemicals 54,151 Henkel KGaA 3,123,716 0.0
Machinery 96,465 Jungheinrich AG 791,177 0.0
& Equipment
Total Preferred Stocks in Germany 3,914,893 0.0
Japan Finance--Other 1,206,000,000 Sanwa International Finance Ltd. (Convertible) 11,354,198 0.2
Total Preferred Stocks in Japan 11,354,198 0.2
Portugal Banking 181,400 BCP International Bank (8% Convertible) (USD) 16,507,400 0.3
Total Preferred Stocks in Portugal 16,507,400 0.3
United Cable Television 1,000,000 Diva Systems Corp. (Convertible, Series C) (l) 11,000,000 0.2
States 1,000,000 Diva Systems Corp. (Convertible, Series D) (i) 11,000,000 0.2
--------------- ------
22,000,000 0.4
Natural Resources Freeport-McMoRan Copper & Gold Inc.:
219,000 (3.50% Convertible-Gold, Series B) 4,229,437 0.0
348,700 (5% Convertible, Series A) 4,576,687 0.1
--------------- ------
8,806,124 0.1
Railroads 40,000 Union Pacific Capital Trust (6.25% Convertible) 1,690,000 0.0
Real Estate 476,800 Apartment Investment & Management Co. (9.375%,
Investment Series G) 9,178,400 0.1
Trusts 298,746 Bradley Real Estate Inc. (8.40% Convertible,
Series A) 5,825,547 0.1
97,300 CarrAmerica Realty Corporation (8.55%, Series C) 1,873,025 0.0
400,000 Crown American Realty Trust (11%, Series A) 14,000,000 0.2
139,200 First Union Real Estate (8.40% Convertible,
Series A) 2,714,400 0.0
1,000,000 First Washington Realty Trust, Inc. (9.75%,
Series A) 26,500,000 0.4
350,000 National Health Investors, Inc. (8.50%
Convertible) 4,725,000 0.1
717,500 Prime Retail, Inc. (10.50%) 6,726,562 0.1
--------------- ------
71,542,934 1.0
Total Preferred Stocks in the United States 104,039,058 1.5
Total Investments in Preferred Stocks (Cost--
$185,090,658) 161,258,673 2.3
<CAPTION>
Currency Face
Denomination Amount Fixed-Income Securities
<S> <S> <C> <C> <S> <C> <C>
Argentina Banking USD 24,250,000 Banco Rio de la Plata, 8.75% due 12/15/2003 23,219,375 0.3
Food/Dairy USD 23,500,000 Mastellone Hermanos SA, 11.75% due 4/01/2008 18,330,000 0.3
Products
Government City of Buenos Aires:
Obligations ARS 16,150,000 10.50% due 5/28/2004 14,221,955 0.2
USD 12,700,000 11.25% due 4/11/2007 (i) 11,715,750 0.2
Republic of Argentina (d)(k):
USD 14,304,000 7.375% due 3/31/2005 (h) 13,320,600 0.2
USD 15,000,000 Series L, 6.875% due 3/31/2023 12,750,000 0.2
--------------- ------
52,008,305 0.8
Total Fixed-Income Securities in Argentina 93,557,680 1.4
Brazil Banking Banco Nacional de Desenvolvimiento Economico e Social:
USD 7,500,000 9% due 9/24/2007 6,375,000 0.1
USD 25,790,000 12.693% due 6/16/2008 (d) 23,180,052 0.3
--------------- ------
29,555,052 0.4
Government Republic of Brazil (k):
Obligations USD 31,500,000 Exit Bonds, 6% due 9/15/2013 21,420,000 0.3
USD 10,000,000 Par Z, 6% due 4/15/2024 (d) 6,362,500 0.1
--------------- ------
27,782,500 0.4
Industrial USD 6,350,000 Camargo Correa, 8.75% due 7/22/2005 6,151,562 0.1
USD 13,000,000 Globo Comunicacoes e Participacoes, Ltd., 10.625%
due 12/05/2008 (i) 10,757,500 0.2
--------------- ------
16,909,062 0.3
Utilities USD 32,250,000 Espirito Santo-Escelsa, 10% due 7/15/2007 25,800,000 0.4
Total Fixed-Income Securities in Brazil 100,046,614 1.5
Cayman Finance-- USD 49,250,000 Hutchison Whampoa Limited, 7.45% due 8/01/2017 43,980,250 0.6
Islands Other
Total Fixed-Income Securities in the
Cayman Islands 43,980,250 0.6
Chile Utilities-- USD 10,000,000 Edelnor, 7.75% due 3/15/2006 3,400,000 0.0
Electric Empresa Electricidad del Norte:
USD 28,500,000 10.50% due 6/15/2005 (i) 12,255,000 0.2
USD 15,800,000 10.50% due 6/15/2005 (Regulation S) 6,794,000 0.1
Total Fixed-Income Securities in Chile 22,449,000 0.3
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Currency Face Percent of
COUNTRY Industries Denomination Amount Fixed-Income Securities Value Net Assets
<S> <S> <C> <C> <S> <C> <C>
China Utilities-- USD 34,900,000 Huaneng Power International PLC, 1.75% due
Electric 5/21/2004 (Convertible Bonds) $ 38,041,000 0.6%
Total Fixed-Income Securities in China 38,041,000 0.6
France Real Estate EUR 21,464,822 Societe Fonciere Lyonnaise SA, 4% due 10/31/2004
(Convertible Bonds) 20,369,380 0.3
Total Fixed-Income Securities in France 20,369,380 0.3
Germany Financial EUR 5,000,000 General Electric Capital Corp., 3% due 2/08/2001 4,441,221 0.1
Services
Government EUR 90,000,000 KFW International Finance, 3.125% due 7/16/2001 80,417,669 1.1
Obligations
Total Fixed-Income Securities in Germany 84,858,890 1.2
Hong Kong Multi- USD 17,250,000 First Pacific Capital Corp., 2% due 3/27/2002
Industry (Convertible Bonds) 18,975,000 0.3
USD 16,000,000 Hutchison Delta Finance, 7% due 11/08/2001
(Convertible Bonds) 18,560,000 0.2
USD 14,650,000 Hutchison Whampoa Limited, 7.50% due 8/01/2027 13,023,850 0.2
Total Fixed-Income Securities in Hong Kong 50,558,850 0.7
Indonesia Paper & USD 10,650,000 APP Finance VII Mauritius, 3.50% due 4/30/2003
Forest (Convertible Bonds) 8,307,000 0.1
Products USD 32,000,000 APP Global Finance V Ltd., 2% due 7/25/2000
(Convertible Bonds) (i) 37,600,000 0.6
Total Fixed-Income Securities in Indonesia 45,907,000 0.7
Japan Automotive JPY 960,000,000 Fuji Heavy Industries, #4, 0.90% due 9/30/2003
(Convertible Bonds) 15,073,976 0.2
CHF 1,400,000 Nissin Kogyo Co. Ltd., 0.125% due 3/31/2003
(Convertible Bonds) 1,505,376 0.0
JPY 1,200,000,000 Toyoda Automatic Loom Works, #2, 0.35% due
9/30/2003 (Convertible Bonds) 13,213,047 0.2
--------------- ------
29,792,399 0.4
Banking JPY 4,140,000,000 Fuji International Finance Trust, 0.25% due
2/01/2002 (Convertible Preference Shares) 30,262,318 0.4
USD 16,500,000 MBL International Finance (Bermuda), 3% due
11/30/2002 (Convertible Bonds) 17,490,000 0.3
JPY 1,879,000,000 Sumitomo Bank International Finance NV, 0.75%
due 5/31/2001 (Convertible Bonds) 19,863,590 0.3
--------------- ------
67,615,908 1.0
Beverages JPY 1,762,000,000 Kinki Coca-Cola Bottling Co., Ltd., #1, 0.85%
due 12/30/2003 (Convertible Bonds) 17,363,220 0.2
JPY 582,000,000 Shikoku Coca-Cola Bottling Co., Ltd., #1, 2.40%
due 3/29/2002 (Convertible Bonds) 5,762,110 0.1
--------------- ------
23,125,330 0.3
Electrical JPY 1,339,000,000 Matsushita Electric Works, Ltd., #9, 1% due
Equipment 11/30/2005 (Convertible Bonds) 14,694,000 0.2
Electronics JPY 650,000,000 Matsushita Electric Industrial Company, Ltd., #5,
1.30% due 3/29/2002 (Convertible Bonds) 10,735,600 0.2
Total Fixed-Income Securities in Japan 145,963,237 2.1
Malaysia Oil--Related Petroliam Nasional Berhad:
USD 69,725,000 7.75% due 8/15/2015 (i) 61,358,000 0.9
USD 103,314,000 7.625% due 10/15/2026 89,005,011 1.3
--------------- ------
150,363,011 2.2
Telecommuni- Telekom Malaysia Berhad:
cations USD 43,350,000 4% due 10/03/2004 (Convertible Bonds) 37,822,875 0.5
USD 20,825,000 7.875% due 8/01/2025 18,263,525 0.3
--------------- ------
56,086,400 0.8
Total Fixed-Income Securities in Malaysia 206,449,411 3.0
Mexico Oil--Related USD 10,150,000 Petroleos Mexicanos, 8.625% due 12/01/2023 (i) 8,830,500 0.1
Total Fixed-Income Securities in Mexico 8,830,500 0.1
Netherlands Cable/ United Pan-Europe Communications (b):
Telecommuni- USD 500,000 0/13.50% due 2/01/2010 242,500 0.0
cations USD 26,500,000 0/13.75% due 2/01/2010 (i) 12,852,500 0.2
Total Fixed-Income Securities in the Netherlands 13,095,000 0.2
New Government NZD 15,000,000 New Zealand Index Linked Notes, 4.50% due 2/14/2016 7,165,372 0.1
Zealand Obligations
Total Fixed-Income Securities in New Zealand 7,165,372 0.1
Russia Government USD 5,900,000 City of St. Petersburg, 9.50% due 6/18/2002 4,749,500 0.1
Obligations USD 4,200,000 Russian Federation, 8.75% due 7/24/2005 (i) 3,018,750 0.0
7,768,250 0.1
Oil--Related USD 13,250,000 Lukinter Finance, 3.50% due 5/06/2002 (Convertible
Bonds) 14,177,500 0.2
--------------- ------
Total Fixed-Income Securities in Russia 21,945,750 0.3
Singapore Industrial USD 7,250,000 Keppel Fels Energy and Infrastructure, 1.50% due
5/02/2001 (Convertible Bonds) 6,670,000 0.1
Multi Keppel Corporation Limited (Redeemable Cumulative
-Industry Convertible Preference Shares):
USD 15,200,000 2% due 8/12/2002 (i) 15,846,000 0.2
USD 1,300,000 2% due 8/12/2002 (Regulation S) 1,355,250 0.0
--------------- ------
17,201,250 0.2
Telecommuni- USD 13,600,000 Fullerton/Singapore Telecom, 0% due 4/02/2003
cations (Convertible Bonds) (b) 13,820,320 0.2
Total Fixed-Income Securities in Singapore 37,691,570 0.5
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
<CAPTION>
Currency Face Percent of
COUNTRY Industries Denomination Amount Fixed-Income Securities Value Net Assets
<S> <S> <C> <C> <S> <C> <C>
South Insurance USD 35,050,000 Liberty Life International, 6.50% due 9/30/2004
Africa (Convertible Bonds) $ 34,131,690 0.5%
Total Fixed-Income Securities in South Africa 34,131,690 0.5
South Banking Koram Bank Ltd. (Convertible Bonds):
Korea USD 1,500,000 0.25% due 8/26/2007 (i) 1,627,500 0.0
USD 5,750,000 0.25% due 8/26/2007 (Regulation S) 6,238,750 0.1
--------------- ------
7,866,250 0.1
Energy Related Ssangyong Oil Refining Co.:
USD 9,755,000 3% due 12/31/2004 (Convertible Bonds) 6,535,850 0.1
USD 13,190,000 3.75% due 12/31/2008 15,168,500 0.2
--------------- ------
21,704,350 0.3
Utilities-- USD 17,750,000 Korea Electric Power Corp., 5% due 8/01/2001
Electric (Convertible Bonds) 17,306,250 0.3
Total Fixed-Income Securities in South Korea 46,876,850 0.7
Thailand Metals USD 32,669,348 NSM Steel Inc., 12% due 2/01/2006 (f)(i) 1,633,467 0.0
--Steel
Total Fixed-Income Securities in Thailand 1,633,467 0.0
United Finance USD 2,750,000 Swiss Life Finance, 2% due 5/20/2005 2,667,500 0.0
Kingdom
Government EUR 20,750,000 United Kingdom, 4.25% due 1/29/2001 18,903,802 0.3
Obligations
Real Estate GBP 12,250,000 Liberty International PLC, 5.50% due 4/30/2009
(Convertible Bonds) 18,210,360 0.3
Supranational EUR 5,000,000 European Investment Bank, 6% due 4/04/2001 4,615,735 0.1
Telecommuni- USD 23,200,000 International Cabletel, Inc., 0/11.50% due
cations 2/01/2006 (b) 21,576,000 0.3
GBP 14,250,000 NTL Incorporated, 0/10.75% due 4/01/2008 (b) 14,493,960 0.2
--------------- ------
36,069,960 0.5
Total Fixed-Income Securities in the United Kingdom 80,467,357 1.2
United Airlines USD 14,000,000 Trans World Airlines, 11.375% due 3/01/2006 3,780,000 0.1
States
Electronics USD 10,250,000 Mosel Vitelic Inc., 1% due 2/02/2005 (i) 11,685,000 0.2
Finance USD 2,250,000 Bell Atlantic Financial, 5.75% due 4/01/2003 2,272,500 0.0
USD 50,000,000 Beta Finance Corp., 0.20% due 5/27/2000 (i) 49,760,000 0.7
USD 28,750,000 KFW International Finance, 7.125% due 2/15/2005 28,563,125 0.4
USD 2,750,000 Swiss Re America Corp, 2.25% due 6/10/2004 2,571,250 0.1
--------------- ------
83,166,875 1.2
Finance USD 50,000,000 CC (USA) Inc., 0% due 9/14/2001 (l) 49,185,000 0.7
--Other
Financial EUR 8,000,000 General Electric Capital Corporation, 3.75% due
Services 9/21/2001 7,199,999 0.1
USD 1,700,000 Hawthorne Financial Corp., 12.50% due 12/31/2004 1,547,000 0.0
USD 3,445,000 Ugly Duckling Corporation, 12% due 10/15/2003 3,100,500 0.1
--------------- ------
11,847,499 0.2
Food & USD 15,000,000 Tom's Foods Inc., 10.50% due 11/01/2004 12,750,000 0.2
Beverage
Healthcare USD 17,450,000 American Retirement Corp., 5.75% due 10/01/2002
(Convertible Bonds) 11,342,500 0.2
Industrial USD 25,000,000 CTI Holdings SA, 0/11.50% due 4/15/2008 (b) 15,375,000 0.2
Real Estate Security Capital U.S. Realty (Convertible Bonds):
USD 53,100,000 2% due 5/22/2003 (i) 40,024,125 0.6
USD 3,650,000 2% due 5/22/2003 (Regulation S) 2,751,187 0.0
--------------- ------
42,775,312 0.6
Real Estate USD 25,500,000 Alexander Haagen Properties, Inc., 7.25% due
Investment 12/27/2003 (Exchangeable Debentures) 24,225,000 0.4
Trusts HRPT Properties Trust (Convertible Bonds):
USD 40,000,000 7.25% due 10/01/2001 37,900,000 0.5
USD 15,000,000 7.50% due 10/01/2003 13,575,000 0.2
USD 4,500,000 Healthcare Realty Trust, Inc., 6.55% due 3/14/2002
(Convertible Bonds) 3,780,000 0.1
LTC Properties, Inc. (Convertible Bonds):
USD 8,000,000 8.50% due 1/01/2001 6,960,000 0.1
USD 3,700,000 8.25% due 7/01/2001 2,923,000 0.0
USD 25,000,000 Leperq Corporate Income Fund, 8% due 3/17/2004
(Exchangeable Secured Notes) (i) 23,750,000 0.3
USD 27,000,000 Malan Realty Investors, Inc., 8.50% due 7/15/2003
(Convertible Bonds) (i) 23,220,000 0.3
USD 5,000,000 Mid-Atlantic Realty Trust, 7.625% due 9/15/2003
(Convertible Bonds) 4,625,000 0.1
National Health Investors, Inc. (Convertible Bonds):
USD 22,000,000 7.75% due 1/01/2001 19,580,000 0.3
USD 4,500,000 7% due 2/01/2004 2,767,500 0.0
USD 27,800,000 Omega Healthcare Investors, Inc., 8.50% due
2/01/2001 (Convertible Bonds) 19,738,000 0.3
USD 5,500,000 Sizeler Property Investors, Inc., 8% due 7/15/2003
(Convertible Bonds) 4,895,000 0.1
--------------- ------
187,938,500 2.7
Steel USD 8,500,000 Republic Technologies, 13.75% due 7/15/2009 (m) 2,125,000 0.0
Telecommuni- CellNet Data Systems, Inc.:
cations USD 2,600,000 15% due 5/16/2000 2,600,000 0.0
USD 3,172,000 15% due 5/16/2000 (l) 3,172,000 0.0
USD 120,363,000 0/14% due 10/01/2007 (b) 9,629,040 0.2
Centennial Communication Corporation (b):
USD 40,000,000 0/14% due 1/01/2005 14,400,000 0.2
USD 11,925,186 0/9% due 7/01/2006 (l) 5,366,334 0.1
USD 132,057,412 Metromedia International Group, 0/10.50% due
9/30/2007 (b) 62,066,984 0.9
USD 14,250,000 Metricom Inc., 13% due 2/15/2010 11,400,000 0.2
USD 32,032,000 USN Communications, Inc., 0/14.625% due
8/15/2004 (b)(f)(i) 2,402,400 0.0
USD 21,500,000 United International Holdings, 0/10.75% due
2/15/2008 (b)(e) 13,975,000 0.2
USD 17,000,000 United USN Inc., 0/14% due 9/15/2003 (b)(f)(g)(i) 1,275,000 0.0
--------------- ------
126,286,758 1.8
US USD 143,000,000 US Treasury Inflation Indexed Notes, 3.375% due
Government 1/15/2007 (c) 147,480,401 2.1
Obligations
Total Fixed-Income Securities in the United States 705,737,845 10.2
Total Investments in Fixed-Income Securities
(Cost--$1,946,412,512) 1,809,756,713 26.2
Total Long-Term Investments (Cost--$6,065,592,566) 5,988,613,708 86.7
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<CAPTION>
Currency Face Percent of
COUNTRY Industries Denomination Amount Fixed-Income Securities Value Net Assets
<S> <S> <C> <C> <S> <C> <C>
United Commercial USD 47,781,000 The CIT Group Holdings, Inc., 6.05% due 5/01/2000 $ 47,764,940 0.7%
States Paper** USD 18,000,000 CSW Credit Inc., 6.01% due 5/02/2000 17,990,985 0.3
USD 30,000,000 Goldman Sachs Group, Inc., 6.02% due 5/25/2000 29,869,567 0.4
USD 10,000,000 Metropolitan Life Insurance Company, 6.02% due
5/01/2000 9,996,656 0.1
Total Investments in Short-Term Securities
(Cost--$105,622,148) 105,622,148 1.5
OPTIONS Nominal Value
PURCHASED Covered by Options Issue
Call Options 13,300 Standard & Poor's 500 Index, expiring December 2000
Purchased at USD 1500 1,822,100 0.0
Total Options Purchased (Premiums Paid--$1,242,220) 1,822,100 0.0
Total Investments (Cost--$6,172,456,934) 6,096,057,956 88.2
OPTIONS
WRITTEN
Call 200,000 Unum Provident Corporation, expiring September
Options Written 2000 at USD 20 (512,500) 0.0
Total Options Written (Premiums Received--$437,733) (512,500) 0.0
Total Investments, Net of Options Written (Cost--$6,172,019,201) 6,095,545,456 88.2
Foreign Time Deposits* 544,640,968 7.9
Variation Margin on Financial Futures Contracts*** 785,191 0.0
Unrealized Appreciation on Forward Foreign Exchange Contracts--Net**** 20,637,953 0.3
Other Assets Less Liabilities 247,062,143 3.6
--------------- ------
Net Assets $ 6,908,671,711 100.0%
=============== ======
++American Depositary Receipts (ADR).
++++Global Depositary Receipts (GDR).
*Foreign time deposits bear interest at 3.59%, 3.55%, 3.78% and
3.71% and mature on 5/05/2000, 5/12/2000, 5/12/2000 and 5/19/2000,
respectively.
**Commercial Paper is traded on a discount basis. The interest rates
shown reflect the discount rates paid at April 30, 2000.
***Financial futures contracts purchased as of April 30, 2000 were
as follows:
Number of Expiration
Contracts Issue Exchange Date Value
285 Nikkei 225 OSAKA June 2000 $ 47,730,743
------------
Total Financial Futures Contracts Purchased
(Total Contract Price--$52,199,399) $ 47,730,743
============
Financial futures contracts sold as of April 30, 2000 were as follows:
Number of Expiration
Contracts Issue Exchange Date Value
170 Japanese
Government Bond Tokyo June 2000 $208,262,781
195 Standard & Poor's
500 Index NYSE June 2000 71,175,000
------------
Total Financial Futures Contracts Sold
(Total Contract Price--$275,862,744) $279,437,781
============
****Forward foreign exchange contracts as of April 30, 2000 were as
follows:
Foreign Expiration Unrealized
Currency Sold Date Appreciation
CHF 40,000,000 June 2000 $ 881,297
GBP 68,000,000 May 2000 1,449,745
GBP 45,000,000 June 2000 600,440
JPY 51,300,000,000 May 2000 12,031,265
JPY 20,350,000,000 June 2000 5,317,156
SEK 110,000,000 May 2000 358,050
-------------
Total Unrealized Appreciation on Forward
Foreign Exchange Contracts--Net
(USD Commitment--$898,374,383) $ 20,637,953
=============
(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 of stock/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 $1,000 face amount contains one warrant of United
International Holdings.
(f)Non-income producing security.
(g)Each $1,000 face amount contains one warrant of United USN Inc.
(h)Subject to principal paydowns as result of prepayments or
refinancings of the underlying mortgage instruments. As a result,
the average life may be less than the original maturity.
(i)The security may be offered and sold to "qualified institutional
buyers" under Rule 144A of the Securities Act of 1933.
(j)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:
Net Share Net Dividend
Industry Affiliate Activity Cost Income
Real Estate Anthracite
Investment Capital, Inc.
Trusts -- -- $ 572,141
Healthcare Beverly Enterprises,
Services Inc. 3,759,800 $11,658,698 ++
Textiles Burlington Industries,
Inc. 1,213,400 4,652,853 ++
Electronics Checkpoint
Systems, Inc. -- (1,163,801) ++
Forest Deltic
Products Timber
Corporation 318,400 7,023,904 61,150
Tobacco DIMON
Incorporated 1,126,200 3,113,756 236,075
Utilities-- El Paso Electric
Electric Company (437,285) (2,295,746) ++
Telecommuni- General
cations Communication,
Inc. (Class A) -- -- ++
Business Data Information
Services Resources, Inc. -- -- ++
Real Estate
Investment
Trusts Meditrust
Companies 5,726,400 23,047,777 2,120,600
Insurance Risk Capital
Holdings, Inc. (181,100) (3,591,712) ++
Telecommuni- Rogers Cantel
cations Mobile
Communications
Inc. 'B' -- -- ++
Telecommuni- Rogers Cantel
cations Mobile
Communications
Inc. 'B' (USD) (579,600) (10,073,680) ++
Gaming Scientific Games
Holdings Corp. -- -- ++
Real Estate Security Capital
Group
Incorporated
(Class A) 15,200 9,443,000 ++
Real Estate Security Capital
Group
Incorporated
(Class B) 189,200 2,282,947 ++
++Non-income producing security.
(k)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.
(l)Restricted securities as to resale. The value of the Fund's
investment in restricted securities was approximately $68,723,000,
representing 1.0% of net assets.
Acquisition
Issue Date(s) Cost Value
CC (USA) Inc., 0% due
9/14/2001 12/21/1999 $ 50,000,000 $ 49,185,000
CellNet Data Systems, Inc.,
15% due 5/16/2000 12/02/1999 3,172,000 3,172,000
Centennial Communication
Corporation, 0/9% due
7/01/2006 1/13/1998 11,775,970 5,366,334
Diva Systems Corp. 7/17/1996-
(Convertible, Series C) 8/22/1996 8,410,000 11,000,000
------------ ------------
Total $ 73,357,970 $ 68,723,334
============ ============
(m)Each $1,000 face amount contains one warrant of Republic
Technologies.
(n)Geotek Communications, Inc. reorganized as a result of Chapter 11
Bankruptcy. As a result, each holder will receive its pro-rata share
of Units of Beneficial Interest in the Liquidating Trust of Geotek
Communications, Inc.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of April 30, 2000
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$6,171,214,714) $ 6,094,235,856
Put options purchased, at value (cost--$1,242,220) 1,822,100
Unrealized appreciation on forward foreign exchange contracts 20,637,953
Foreign cash 246,710,489
Foreign time deposits 544,640,968
Receivables:
Securities sold $ 48,794,296
Interest 26,149,656
Dividends 14,189,629
Capital shares sold 11,306,410
Variation margin 785,191
Principal paydowns 600,242
Options written 293,593 102,119,017
--------------
Prepaid registration fees and other assets 1,911,601
--------------
Total assets 7,012,077,984
--------------
Liabilities: Options written, at value (premiums received--$437,733) 512,500
Payables:
Securities purchased 65,573,998
Capital shares redeemed 21,750,956
Investment adviser 3,771,437
Distributor 3,656,399
Custodian bank 3,137,808 97,890,598
--------------
Accrued expenses and other liabilities 5,003,175
--------------
Total liabilities 103,406,273
--------------
Net Assets: Net assets $6,908,671,711
==============
Net Assets Class A Shares of Common Stock, $.10 par value,
Consist of: 450,000,000 shares authorized $ 9,049,562
Class B Shares of Common Stock, $.10 par value,
2,000,000,000 shares authorized 29,672,570
Class C Shares of Common Stock, $.10 par value,
200,000,000 shares authorized 2,281,756
Class D Shares of Common Stock, $.10 par value,
900,000,000 shares authorized 9,070,481
Paid-in capital in excess of par 6,367,660,102
Undistributed investment income--net 16,046,376
Undistributed realized capital gains on investments
and foreign currency transactions--net 573,392,193
Unrealized depreciation on investments and foreign
currency transactions--net (98,501,329)
--------------
Net assets $6,908,671,711
==============
Net Asset Class A--Based on net assets of $1,266,051,191 and
Value: 90,495,622 shares outstanding $ 13.99
==============
Class B--Based on net assets of $4,068,118,043 and
296,725,702 shares outstanding $ 13.71
==============
Class C--Based on net assets of $308,114,867 and
22,817,564 shares outstanding $ 13.50
==============
Class D--Based on net assets of $1,266,387,610 and
90,704,812 shares outstanding $ 13.96
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 2000
<S> <S> <C> <C>
Investment Interest and discount earned (net of $18,703 foreign
Income: withholding tax) $ 127,554,512
Dividends (net of $2,306,205 foreign withholding tax) 41,823,538
Other 58,202
--------------
Total income 169,436,252
--------------
Expenses: Investment advisory fees $ 27,008,323
Account maintenance and distribution fees--Class B 21,684,699
Transfer agent fees--Class B 3,956,659
Account maintenance and distribution fees--Class C 1,593,089
Account maintenance fees--Class D 1,556,108
Transfer agent fees--Class A 1,064,339
Custodian fees 1,055,100
Transfer agent fees--Class D 1,018,173
Transfer agent fees--Class C 305,120
Accounting services 198,057
Printing and shareholder reports 122,197
Professional fees 112,015
Pricing fees 66,081
Registration fees 56,875
Directors' fees and expenses 20,066
Other 43,039
--------------
Total expenses before reimbursement 59,859,940
Reimbursement of expenses (1,736,446)
--------------
Total expenses after reimbursement 58,123,494
--------------
Investment income--net 111,312,758
--------------
Realized & Realized gain (loss) from:
Unrealized Investments--net 625,201,209
Gain (Loss) on Foreign currency transactions--net (50,024,185) 575,177,024
Investments & --------------
Foreign Currency Change in unrealized appreciation/depreciation on:
Transactions--Net: Investments--net (315,229,565)
Foreign currency transactions--net 8,641,554 (306,588,011)
-------------- --------------
Net Increase in Net Assets Resulting from Operations $ 379,901,771
==============
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2000 1999
<S> <S> <C> <C>
Operations: Investment income--net $ 111,312,758 $ 337,589,612
Realized gain on investments and foreign currency
transactions--net 575,177,024 609,909,185
Change in unrealized appreciation/depreciation on investments
and foreign currency transactions--net (306,588,011) 923,750,972
-------------- --------------
Net increase in net assets resulting from operations 379,901,771 1,871,249,769
-------------- --------------
Dividends & Investment income--net:
Distributions to Class A (40,186,139) (57,727,266)
Shareholders: Class B (115,233,135) (162,008,358)
Class C (8,469,717) (11,648,684)
Class D (36,732,531) (48,673,340)
Realized gain on investments--net:
Class A (98,577,261) (112,720,460)
Class B (340,791,661) (494,148,058)
Class C (24,950,070) (36,790,295)
Class D (93,915,528) (99,226,016)
-------------- --------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (758,856,042) (1,022,942,477)
-------------- --------------
Capital Share Net decrease in net assets derived from capital share
Transactions: transactions (65,537,082) (3,573,473,024)
-------------- --------------
Net Assets: Total decrease in net assets (444,491,353) (2,725,165,732)
Beginning of period 7,353,163,064 10,078,328,796
-------------- --------------
End of period* $6,908,671,711 $7,353,163,064
============== ==============
*Undistributed investment income--net $ 16,046,376 $ 105,355,140
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A++
For the Six
The following per share data and ratios have been derived Months Ended
from information provided in the financial statements. April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of
Operating period $ 14.79 $ 13.25 $ 15.92 $ 15.17 $ 14.21
Performance: ---------- ---------- ---------- ---------- ----------
Investment income--net .27 .67 .67 .71 .78
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .52 2.53 (1.28) 1.57 1.59
---------- ---------- ---------- ---------- ----------
Total from investment operations .79 3.20 (.61) 2.28 2.37
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.46) (.61) (.86) (.88) (.98)
Realized gain on investments--net (1.13) (1.05) (1.20) (.65) (.43)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.59) (1.66) (2.06) (1.53) (1.41)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.99 $ 14.79 $ 13.25 $ 15.92 $ 15.17
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share 5.73%+++ 26.30% (4.43%) 16.08% 17.81%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses, net of reimbursement .91%* .91% .84% .83% .86%
Net Assets: ========== ========== ========== ========== ==========
Expenses .96%* .97% .93% .91% .93%
========== ========== ========== ========== ==========
Investment income--net 3.79%* 4.86% 4.62% 4.64% 5.31%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in
Data: thousands) $1,266,051 $1,305,473 $1,513,999 $2,132,254 $1,841,974
========== ========== ========== ========== ==========
Portfolio turnover 120.22% 26.95% 49.67% 55.42% 51.26%
========== ========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class B++
For the Six
The following per share data and ratios have been derived Months Ended
from information provided in the financial statements. April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.52 $ 13.01 $ 15.65 $ 14.95 $ 14.01
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .19 .52 .52 .55 .62
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .51 2.49 (1.26) 1.52 1.59
---------- ---------- ---------- ---------- ----------
Total from investment operations .70 3.01 (.74) 2.07 2.21
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.38) (.45) (.70) (.72) (.84)
Realized gain on investments--net (1.13) (1.05) (1.20) (.65) (.43)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.51) (1.50) (1.90) (1.37) (1.27)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.71 $ 14.52 $ 13.01 $ 15.65 $ 14.95
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share 5.17%+++ 25.08% (5.37%) 14.82% 16.71%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses, net of reimbursement 1.93%* 1.94% 1.86% 1.85% 1.87%
Net Assets: ========== ========== ========== ========== ==========
Expenses 1.97%* 1.99% 1.95% 1.93% 1.95%
========== ========== ========== ========== ==========
Investment income--net 2.76%* 3.84% 3.60% 3.62% 4.29%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in
Data: thousands) $4,068,118 $4,496,037 $6,743,780 $9,879,603 $8,660,279
========== ========== ========== ========== ==========
Portfolio turnover 120.22% 26.95% 49.67% 55.42% 51.26%
========== ========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Class C++
For the Six
The following per share data and ratios have been derived Months Ended
from information provided in the financial statements. April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.33 $ 12.86 $ 15.50 $ 14.83 $ 13.94
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .19 .51 .51 .54 .61
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .49 2.46 (1.24) 1.52 1.58
---------- ---------- ---------- ---------- ----------
Total from investment operations .68 2.97 (.73) 2.06 2.19
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.38) (.45) (.71) (.74) (.87)
Realized gain on investments--net (1.13) (1.05) (1.20) (.65) (.43)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.51) (1.50) (1.91) (1.39) (1.30)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.50 $ 14.33 $ 12.86 $ 15.50 $ 14.83
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share 5.11%+++ 25.05% (5.38%) 14.84% 16.68%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses, net of reimbursement 1.93%* 1.95% 1.88% 1.86% 1.88%
Net Assets: ========== ========== ========== ========== ==========
Expenses 1.98%* 2.01% 1.96% 1.94% 1.95%
========== ========== ========== ========== ==========
Investment income--net 2.76%* 3.84% 3.61% 3.60% 4.24%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in
Data: thousands) $ 308,115 $ 322,238 $ 503,556 $ 671,467 $ 385,753
========== ========== ========== ========== ==========
Portfolio turnover 120.22% 26.95% 49.67% 55.42% 51.26%
========== ========== ========== ========== ==========
*Annualized.
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class D++
For the Six
The following per share data and ratios have been derived Months Ended
from information provided in the financial statements. April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.77 $ 13.23 $ 15.89 $ 15.15 $ 14.19
Operating ---------- ---------- ---------- ---------- ----------
Performance: Investment income--net .25 .64 .64 .68 .77
Realized and unrealized gain (loss) on
investments and foreign currency
transactions--net .51 2.52 (1.28) 1.55 1.57
---------- ---------- ---------- ---------- ----------
Total from investment operations .76 3.16 (.64) 2.23 2.34
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.44) (.57) (.82) (.84) (.95)
Realized gain on investments--net (1.13) (1.05) (1.20) (.65) (.43)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.57) (1.62) (2.02) (1.49) (1.38)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.96 $ 14.77 $ 13.23 $ 15.89 $ 15.15
========== ========== ========== ========== ==========
Total Investment Based on net asset value per share 5.53%+++ 26.01% (4.63%) 15.76% 17.59%
Return:** ========== ========== ========== ========== ==========
Ratios to Average Expenses, net of reimbursement 1.16%* 1.16% 1.10% 1.08% 1.10%
Net Assets: ========== ========== ========== ========== ==========
Expenses 1.21%* 1.21% 1.18% 1.16% 1.18%
========== ========== ========== ========== ==========
Investment income--net 3.54%* 4.61% 4.40% 4.38% 5.04%
========== ========== ========== ========== ==========
Supplemental Net assets, end of period (in
Data: thousands) $1,266,388 $1,229,415 $1,316,994 $1,479,711 $1,044,136
========== ========== ========== ========== ==========
Portfolio turnover 120.22% 26.95% 49.67% 55.42% 51.26%
========== ========== ========== ========== ==========
*Annualized
**Total investment returns exclude the effects of sales charges.
++Based on average shares outstanding.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
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 accounting
principles generally accepted in the United States of America, which
may require the use of management accruals and estimates. These
unaudited financial statements reflect all adjustments, which are,
in the opinion of management, necessary to a fair statement of the
results for the interim period presented. All such adjustments are
of a normal recurring nature. The Fund offers four classes of shares
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 that are traded
on stock exchanges are valued at the last sale price on the exchange
on which such securities are traded, as of the close of business on
the day the securities are being valued or, lacking any sales, at
the last available bid price. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of Directors as
the primary market. Securities that are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written or
purchased are valued at the last sale price in the case of exchange-
traded options. In the case of options traded in the over-the-
counter market, valuation is the last asked price (options written)
or the last bid price (options purchased). Short-term securities are
valued at amortized cost, which approximates market value. Other
investments, including 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. If the seller defaults and the fair value of the
collateral declines, liquidation of the collateral by the Fund may
be delayed or limited.
(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 investment strategies to increase or decrease the level of
risk to which the Fund is exposed more quickly and efficiently than
transactions in other types of instruments. Losses may arise due to
changes in the value of the contract or if the counterparty does not
perform under the contract.
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
NOTES TO FINANCIAL STATEMENTS (continued)
* 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.
* 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.
(j) Custodian bank--The Fund recorded an amount payable to the
Custodian bank reflecting an overnight overdraft resulting from a
failed trade, which settled the next day.
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 .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 .75% to .70%, from .70% to .65%
for average daily net assets in excess of $5 billion, from .65% to
.625% for average daily net assets in excess of $7.5 billion, and
from .625% to .60% for average daily net assets in excess of $10
billion. For the six months ended April 30, 2000, MLAM earned fees
of $27,008,323, of which $1,736,446 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 .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, 2000, MLAM paid MLAM U.K. a fee of $5,563,185
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 Distribution
Maintenance Fee Fee
Class B .25% .75%
Class C .25% .75%
Class D .25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML &
Co., also provides account maintenance and distribution services to
the 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, 2000, 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 $ 2,493 $ 31,353
Class D $11,733 $163,843
For the six months ended April 30, 2000, MLPF&S received contingent
deferred sales charges of $1,933,324 and $18,532 relating to
transactions in Class B and Class C Shares, respectively.
Furthermore, MLPF&S received contingent deferred sales charges of
$905 and $506 relating to transactions subject to front-end sales
charge waivers in Class A and Class D Shares, respectively.
In addition, MLPF&S received $316,107 in commissions on the
execution of portfolio security transactions for the Fund for the
six months ended April 30, 2000.
For the six months ended April 30, 2000, the Fund paid Merrill Lynch
Security Pricing Service, an affiliate of MLPF&S, $13 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, 2000 were $8,386,416,968 and
$9,060,248,887, respectively.
Net realized gains (losses) for the six months ended April 30, 2000
and net unrealized gains (losses) as of April 30, 2000 were as
follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 617,250,350 $ (76,978,858)
Short-term investments (9,347) --
Options purchased -- 579,880
Options written 293,593 (74,767)
Financial futures contracts 7,666,613 (8,043,693)
Forward foreign exchange contracts 23,643,150 20,637,953
Foreign currency transactions (73,667,335) (34,621,844)
-------------- --------------
Total $ 575,177,024 $ (98,501,329)
============== ==============
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
As of April 30, 2000, net unrealized depreciation for Federal income
tax purposes aggregated $76,473,745, of which $967,662,252 related
to appreciated securities and $1,044,135,997 related to depreciated
securities. At April 30, 2000, the aggregate cost of investments,
including investment options, for Federal income tax purposes was
$6,172,019,201.
Transactions in call options written for the six months ended April
30, 2000 were as follows:
Nominal Value Premiums
Covered Received
Outstanding call options written,
beginning of period -- --
Options written 317,727 $ 731,326
Options expired (117,727) (293,593)
----------- ------------
Outstanding call options written,
end of period 200,000 $ 437,733
=========== ============
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $65,537,082 and $3,573,473,024 for the six months ended April
30, 2000 and the year ended October 31, 1999, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the
Six Months Ended Dollar
April 30, 2000 Shares Amount
Shares sold 7,983,617 $ 112,762,680
Shares issued to shareholders in
reinvestment of dividends and
distributions 9,473,632 127,799,296
------------- --------------
Total issued 17,457,249 240,561,976
Shares redeemed (15,201,000) (214,010,091)
------------- --------------
Net increase 2,256,249 $ 26,551,885
============= ==============
Class A Shares for the
Year Ended Dollar
October 31, 1999 Shares Amount
Shares sold 12,530,177 $ 175,810,684
Shares issued to shareholders in
reinvestment of dividends and
distributions 12,137,132 155,646,841
------------- --------------
Total issued 24,667,309 331,457,525
Shares redeemed (50,661,390) (688,089,821)
------------- --------------
Net decrease (25,994,081) $ (356,632,296)
============= ==============
Class B Shares for the
Six Months Ended Dollar
April 30, 2000 Shares Amount
Shares sold 12,255,973 $ 170,313,874
Shares issued to shareholders in
reinvestment of dividends and
distributions 29,174,141 387,140,852
------------- --------------
Total issued 41,430,114 557,454,726
Automatic conversion of shares (7,033,012) (98,040,264)
Shares redeemed (47,307,994) (655,071,442)
------------- --------------
Net decrease (12,910,892) $ (195,656,980)
============= ==============
Class B Shares for the
Year Ended Dollar
October 31, 1999 Shares Amount
Shares sold 24,632,963 $ 336,673,892
Shares issued to shareholders in
reinvestment of dividends and
distributions 44,920,983 562,403,690
------------- --------------
Total issued 69,553,946 899,077,582
Automatic conversion of shares (13,301,061) (182,957,856)
Shares redeemed (264,775,335) (3,496,502,022)
------------- --------------
Net decrease (208,522,450) $(2,780,382,296)
============= ==============
Class C Shares for the
Six Months Ended Dollar
April 30, 2000 Shares Amount
Shares sold 1,884,425 $ 25,683,948
Shares issued to shareholders in
reinvestment of dividends and
distributions 2,182,038 28,519,237
------------- --------------
Total issued 4,066,463 54,203,185
Shares redeemed (3,742,080) (51,133,469)
------------- --------------
Net increase 324,383 $ 3,069,716
============= ==============
Class C Shares for the
Year Ended Dollar
October 31, 1999 Shares Amount
Shares sold 2,256,896 $ 30,629,684
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,391,680 41,849,550
------------- --------------
Total issued 5,648,576 72,479,234
Shares redeemed (22,315,085) (290,085,046)
------------- --------------
Net decrease (16,666,509) $ (217,605,812)
============= ==============
Class D Shares for the
Six Months Ended Dollar
April 30, 2000 Shares Amount
Shares sold 6,023,444 $ 85,271,778
Automatic conversion of shares 6,914,502 98,040,264
Shares issued to shareholders in
reinvestment of dividends and
distributions 8,442,141 113,800,063
------------- --------------
Total issued 21,380,087 297,112,105
Shares redeemed (13,935,999) (196,613,808)
------------- --------------
Net increase 7,444,088 $ 100,498,297
============= ==============
Class D Shares for the
Year Ended Dollar
October 31, 1999 Shares Amount
Shares sold 7,993,663 $ 111,583,389
Automatic conversion of shares 13,089,544 182,957,856
Shares issued to shareholders in
reinvestment of dividends and
distributions 10,005,348 128,232,463
------------- --------------
Total issued 31,088,555 422,773,708
Shares redeemed (47,370,107) (641,626,328)
------------- --------------
Net decrease (16,281,552) $ (218,852,620)
============= ==============
5. Commitments:
At April 30, 2000, the Fund had entered into foreign exchange
contracts, in addition to the contracts listed on the Schedule of
Investments, under which it had agreed to purchase and sell various
foreign currencies with approximate values of $23,058,000 and
$1,998,000, respectively.
6. Reorganization Plan:
On January 22, 2000, the Fund's Board of Directors approved a plan
of reorganization, subject to shareholder approval and certain other
conditions, whereby the Fund would acquire substantially all of the
assets and liabilities of Merrill Lynch Asset Growth Fund, Inc.,
Merrill Lynch Asset Income Fund, Inc. and the Global Opportunity
Portfolio of The Asset Program, Inc. in exchange for newly issued
shares of the Fund. These Funds are registered, diversified, open-
end management investment companies. All four entities have similar
investment objectives and are managed by MLAM, except for the Global
Opportunity Portfolio, which is managed by Fund Asset Management,
L.P., an affiliate of MLAM.
Merrill Lynch Global Allocation Fund, Inc., April 30, 2000
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Charles C. Reilly, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Robert C. Doll, Jr., Senior Vice President
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
Donald Cecil and Edward H. Meyer, Directors of Merrill Lynch Global
Allocation Fund, Inc., have recently retired. The Fund's Board of
Directors wishes Mr. Cecil and Mr. Meyer well in their retirements.
