MERRILL LYNCH
GLOBAL UTILITY
FUND, INC.
[GRAPHIC OMITTED]
STRATEGIC
Performance
Quarterly Report
August 31, 1998
<PAGE>
MERRILL LYNCH GLOBAL UTILITY FUND, INC.
Sector
Diversification
As a Percentage of
Equities as of
August 31, 1998
[The following table was represented as a pie chart in the printed material.]
Telecommunications 49.9%
Utilities-Electric 33.1%
Utilities-Gas 12.0%
Utilities-Water 5.0%
Geographical
Diversification
As a Percentage of
Equities as of
August 31, 1998
[The following table was represented as a pie chart in the printed material.]
Europe 49.9%
United States 40.6%
Asia/Pacific Basin 6.1%
Americas (Ex-US) 3.4%
<PAGE>
Merrill Lynch Global Utility Fund, Inc., August 31, 1998
DEAR SHAREHOLDER
Mounting evidence of a slowing economy and the prospect of lower corporate
earnings growth led to greater volatility in the US financial markets during the
quarter ended August 31, 1998. At the same time, greater economic and political
uncertainties in Asia and Russia led investors to become concerned about the
outlook for economic activity worldwide. Although these developments were
negative for stock markets, they generally were beneficial to bond prices,
especially as inflationary trends remained subdued. As was widely anticipated,
the Federal Reserve Board did not move to tighten monetary policy. However,
shortly after the August quarter's close, Federal Reserve Board Chairman Alan
Greenspan indicated that the central bank's focus had shifted from inflationary
concerns to the threat posed to the US economy by the increasing financial
troubles in other countries.
In the United States, gross domestic product (GDP) rose at a rate of 1.4% for
the second calendar quarter, down from the 5.5% rate for the first three months
of the year. The economic slowdown in Asia negatively impacted US exports, and
the protracted strike at General Motors Corporation also was a negative factor
for economic activity. However, the US dollar remained strong, especially
relative to the Japanese yen. The weakness of the Japanese economy continues to
be a source of concern not only for Asia, but for the rest of the world as well.
In the months ahead, investors will continue to focus on the economic outlook in
Asia and its impact on worldwide economic activity and corporate earnings
results. If there were evidence of more buoyant yet moderate US economic growth
and a pick-up in corporate profits growth, we would expect stability to return
to the financial markets on a global basis. Absent these developments, market
volatility is likely to continue.
Portfolio Matters
For the quarter ended August 31, 1998, Merrill Lynch Global Utility Fund, Inc.'s
Class A, Class B, Class C and Class D Shares had total returns of -4.95%,
- -5.09%, -5.11% and -5.00%, respectively, underperforming the -1.92% total return
for the unmanaged benchmark Financial Times/Standard & Poor's
(FT/S&P)--Actuaries World Utility Index during the same period. However, the
Fund did outperform the total return of the unmanaged Standard & Poor's 500
Index, which returned -11.93% for the August quarter.
During the August quarter, as has been the case for the last several quarters,
the majority of the Fund's net assets was invested in the United States and
Europe. While in the past we have looked at the emerging markets in Asia and
South America as interesting areas for making investments given their
above-average growth prospects over the longer term, we have basically
eliminated most of our holdings in these two regions as a result of increased
market risk and lower growth prospects in the near term. To date, the net result
of these sales has been positive, with some values being half of what they were
when we reduced and eliminated positions. There is always the possibility of a
sharp bounce-back in emerging markets. However, with economic growth
expectations declining sharply, governments in need of more financial resources
and currencies under pressure, it is less likely that companies will be able to
generate price increases that are needed to fund the expenditures for growth in
revenues.
The investment case for US-based and European-based utility stocks is far
different than that of the more emerging markets of Asia and South America.
US-based utility companies are undergoing a period of restructuring that is
resulting in reduced costs. In addition, several companies are disposing of
electric generating plants or trying to increase productivity of current
operations. Moreover, companies have begun to focus on increasing revenues from
the current subscriber base through the introduction of new services.
In several European countries, the focus is on keeping costs under control as
well as on generating revenues through the increased use of existing services
(for example, air conditioning) and the introduction of new services in the
telecommunications sectors (for example, call waiting and voice mail). According
to the results compiled by the FT/S&P--Actuaries World Utility Indexes, for the
August quarter US utility stocks had a total return of -3.01% and European
utility stocks had a total return of +7.48%. Therefore, the Fund's weighting of
nearly 45.7% of net assets invested in Europe as compared to 37.2% in the United
States benefited performance.
During the August quarter, we made several changes to the portfolio. We
continued to reduce and eliminate positions in emerging markets. By quarter-end,
the Fund no longer held investments in Argentina, Chile or Peru. We also reduced
positions in Canada, Spain, Brazil and Austria. On the buy side, we purchased
shares in two new positions and added to one existing holding.
We added Mannesmann AG, a German-based telecommunications and engineering
company, to the portfolio. The primary driver of growth and value going forward
is the telecommunications sector, in our view. The company offers both mobile
telecommunications and fixed network telecommunications services to the public.
Mannesmann is also involved in providing mobile and fixed telephone line service
in Italy and France through joint ventures. The management of the company is
constantly re-evaluating its non-telecommunications business for divestment and
spin-off opportunities.
During the August quarter, we also added the Italian-based electric utility
company, AEM S.p.A., to the portfolio during an initial public offering through
the partial sale of the Italian government's holdings. This is the first
publicly traded electric utility company in Italy. The company primarily serves
the residents of the city of Milan, where the company has a 50% market share of
electricity and near 100% of the non-industrial gas subscribers. Growth
opportunities in the region are attractive, in our view.
In Conclusion
We thank you for your interest in Merrill Lynch Global Utility Fund, Inc., and
we look forward to discussing our investment strategy with you in upcoming
shareholder reports.
Sincerely,
/s/ Arthur Zeikel
Arthur Zeikel
President
/s/ Walter D. Rogers
Walter D. Rogers
Senior Vice President and Portfolio Manager
September 25, 1998
2 & 3
<PAGE>
Merrill Lynch Global Utility Fund, Inc., August 31, 1998
PERFORMANCE DATA
About Fund Performance
Investors are able to purchase shares of the Fund through the Merrill Lynch
Select Pricing(SM) System, which offers four pricing alternatives:
o Class A Shares incur a maximum initial sales charge (front-end load) of 4%
and bear no ongoing distribution or account maintenance fees. Class A
Shares are available only to eligible investors.
o 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 0.50% and an account maintenance fee of
0.25%. These shares automatically convert to Class D Shares after
approximately 10 years. (There is no initial sales charge for automatic
share conversions.)
o Class C Shares are subject to a distribution fee of 0.55% 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.
o Class D Shares incur a maximum initial sales charge of 4% 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.
Recent Performance Results*
<TABLE>
<CAPTION>
12 Month 3 Month Since Inception
Total Return Total Return Total Return
========================================================================================
<S> <C> <C> <C>
ML Global Utility Fund, Inc. Class A Shares +21.90% -4.95% +157.91%
- ----------------------------------------------------------------------------------------
ML Global Utility Fund, Inc. Class B Shares +20.99 -5.09 +143.15
- ----------------------------------------------------------------------------------------
ML Global Utility Fund, Inc. Class C Shares +20.97 -5.11 + 72.91
- ----------------------------------------------------------------------------------------
ML Global Utility Fund, Inc. Class D Shares +21.62 -5.00 + 76.68
========================================================================================
</TABLE>
* 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 inception dates are Class A &
Class B Shares, 12/28/90 and Class C & Class D Shares, 10/21/94.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
==============================================================================
Class A Shares*
==============================================================================
Year Ended 6/30/98 +25.40% +20.38%
- ------------------------------------------------------------------------------
Five Years Ended 6/30/98 +14.04 +13.11
- ------------------------------------------------------------------------------
Inception (12/28/90)
through 6/30/98 +14.36 +13.74
- ------------------------------------------------------------------------------
* Maximum sales charge is 4%.
** Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
==============================================================================
Class B Shares*
==============================================================================
Year Ended 6/30/98 +24.42% +20.42%
- ------------------------------------------------------------------------------
Five Years Ended 6/30/98 +13.17 +13.17
- ------------------------------------------------------------------------------
Inception (12/28/90)
through 6/30/98 +13.48 +13.48
- ------------------------------------------------------------------------------
* Maximum contingent deferred sales chargis 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 6/30/98 +24.37% +23.37%
- ------------------------------------------------------------------------------
Inception (10/21/94)
through 6/30/98 +17.92 +17.92
- ------------------------------------------------------------------------------
* 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 6/30/98 +25.09% +20.09%
- ------------------------------------------------------------------------------
Inception (10/21/94)
through 6/30/98 +18.59 +17.28
- ------------------------------------------------------------------------------
* Maximum sales charge is 4%.
** Assuming maximum sales charge.
4 & 5
<PAGE>
Merrill Lynch Global Utility Fund, Inc., August 31, 1998
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (in US dollars)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Australia Telecommunications 548,000 Telstra Corporation Ltd. $ 1,068,597 $ 1,419,956 0.4%
--------------------------------------------------------------------------------------------------------------------
Utilities-Gas 1,904,285 Australian Gas & Light Co., Ltd. (The) 5,055,470 10,805,370 3.2
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Australia 6,124,067 12,225,326 3.6
====================================================================================================================================
Austria Utilities-Gas 24,320 Energie-Versorgung Niederoesterreich AG (EVN) 1,896,384 3,344,809 1.0
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Austria 1,896,384 3,344,809 1.0
====================================================================================================================================
Brazil Telecommunications 28,000 Telecomunicacoes Brasileiras S.A.-Telebras
(ADR)(b) 1,354,514 1,979,250 0.6
--------------------------------------------------------------------------------------------------------------------
Utilities-Electric 300,000 Companhia Paranaense de Energia (Copel)
(ADR)(b) 5,400,000 1,650,000 0.5
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Brazil 6,754,514 3,629,250 1.1
====================================================================================================================================
Canada Telecommunications 109,200 BC Telecom, Inc. 2,011,806 2,579,253 0.7
--------------------------------------------------------------------------------------------------------------------
Utilities-Electric 63,500 Nova Scotia Power Co. 610,130 616,151 0.2
--------------------------------------------------------------------------------------------------------------------
Utilities-Gas 200,000 TransCanada Pipelines Ltd. (ADR)(b) 3,147,485 2,712,500 0.8
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Canada 5,769,421 5,907,904 1.7
====================================================================================================================================
Denmark Telecommunications 160,000 Tele Danmark A/S (ADR)(b) 3,764,160 8,240,000 2.4
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Denmark 3,764,160 8,240,000 2.4
====================================================================================================================================
France Utilities-Water 68,074 Vivendi S.A.(c) 7,476,968 13,567,578 3.9
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in France 7,476,968 13,567,578 3.9
====================================================================================================================================
Germany Telecommunications 24,300 Deutsche Telekom AG 462,162 643,864 0.2
6,843 Mannesmann AG 610,301 617,326 0.2
----------- ---------- ----
1,072,463 1,261,190 0.4
--------------------------------------------------------------------------------------------------------------------
Utilities-Electric 40,000 RWE AG 1,799,334 1,917,731 0.6
70,000 VEBA AG 2,284,445 3,529,986 1.0
4,000 VIAG AG 1,764,306 2,507,801 0.7
----------- ---------- ----
5,848,085 7,955,518 2.3
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Germany 6,920,548 9,216,708 2.7
====================================================================================================================================
Hong Kong Utilities-Gas 158,455 Hong Kong and China Gas Co. Ltd. (The) 178,364 165,639 0.0
7,202 Hong Kong and China Gas Co. Ltd. (The)
(Warrants)(a) 0 270 0.0
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks & Warrants in Hong Kong 178,364 165,909 0.0
====================================================================================================================================
Italy Telecommunications 2,775,000 Telecom Italia Mobile S.p.A. 2,012,515 18,222,312 5.3
1,505,555 Telecom Italia S.p.A. 2,746,349 11,632,047 3.4
2,891,700 Telecom Italia S.p.A.
(Registered Non-Convertible) 5,447,174 14,399,161 4.2
----------- ---------- ----
10,206,038 44,253,520 12.9
--------------------------------------------------------------------------------------------------------------------
Utilities-Electric 462,000 AEM S.p.A. 437,927 562,202 0.2
--------------------------------------------------------------------------------------------------------------------
Utilities-Gas 1,786,300 Italgas Torino S.p.A. 5,169,953 7,690,067 2.2
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Italy 15,813,918 52,505,789 15.3
====================================================================================================================================
Japan Telecommunications 290 Nippon Telegraph and Telephone
Corporation (NTT) 2,475,448 2,197,904 0.6
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Japan 2,475,448 2,197,904 0.6
====================================================================================================================================
Mexico Telecommunications 35,000 Telefonos de Mexico, S.A. de C.V. (ADR)(b) 1,924,311 1,249,063 0.4
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Mexico 1,924,311 1,249,063 0.4
====================================================================================================================================
New Zealand Telecommunications 56,000 Telecom Corporation of New Zealand Ltd.
(ADR)(b) 1,230,138 1,680,000 0.5
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in New Zealand 1,230,138 1,680,000 0.5
====================================================================================================================================
Philippines Telecommunications 188,000 Philippine Long Distance Telephone Co.
(ADR)(b) 4,077,062 2,937,500 0.9
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in the Philippines 4,077,062 2,937,500 0.9
====================================================================================================================================
Portugal Telecommunications 205,740 Portugal Telecom, S.A. (ADR)(b) 4,576,844 8,551,069 2.5
--------------------------------------------------------------------------------------------------------------------
Utilities-Electric 80,820 EDP-Electricidade de Portugal, S.A.
(ADR)(b) 3,540,889 3,566,183 1.0
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Portugal 8,117,733 12,117,252 3.5
====================================================================================================================================
Spain Telecommunications 477,300 Telefonica de Espana, S.A. 5,492,570 17,850,140 5.2
--------------------------------------------------------------------------------------------------------------------
Utilities-Electric 259,200 Empresa Nacional de Electricidad, S.A.
(Endesa) (ADR)(b) 2,556,672 4,665,600 1.3
46,000 HidroElectrica Del Cantabrico, S.A. 1,553,961 1,981,434 0.6
323,500 Iberdrola I, S.A. 2,035,162 4,763,707 1.4
----------- ---------- ----
6,145,795 11,410,741 3.3
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in Spain 11,638,365 29,260,881 8.5
====================================================================================================================================
United Kingdom Telecommunications 671,000 British Telecommunications PLC 4,688,465 9,102,162 2.7
225,000 Cable & Wireless PLC 2,867,544 2,185,483 0.6
88,000 Vodafone Group PLC (ADR)(b) 2,605,300 11,055,000 3.2
----------- ----------- ----
10,161,309 22,342,645 6.5
--------------------------------------------------------------------------------------------------------------------
Utilities-Electric 208,000 National Power PLC 1,723,671 1,727,754 0.5
370,000 PowerGen PLC 2,705,142 4,579,132 1.3
----------- ---------- ----
4,428,813 6,306,886 1.8
--------------------------------------------------------------------------------------------------------------------
Total Common Stocks in the United Kingdom 14,590,122 28,649,531 8.3
====================================================================================================================================
</TABLE>
6 & 7
<PAGE>
Merrill Lynch Global Utility Fund, Inc., August 31, 1998
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Percent of
COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
United States Telecommunications 46,000 AT&T Corporation $ 1,848,510 $ 2,305,750 0.7%
140,000 Ameritech Corp. 2,996,450 6,597,500 1.9
95,232 Bell Atlantic Corporation 2,819,654 4,202,112 1.2
91,800 BellSouth Corp. 2,702,773 6,294,037 1.8
108,000 Frontier Corp. 2,193,480 3,280,500 1.0
85,000 GTE Corp. 3,145,450 4,250,000 1.2
139,800 SBC Communications, Inc. 2,939,711 5,312,400 1.6
68,000 U S West Communications Group 1,895,186 3,536,000 1.0
108,000 WorldCom Inc. 3,572,937 4,414,500 1.3
------------ ------------ -----
24,114,151 40,192,799 11.7
----------------------------------------------------------------------------------------------------------
Utilities-Electric 156,000 Allegheny Energy, Inc. 4,213,210 4,153,500 1.2
87,200 BEC Energy 2,722,264 3,455,300 1.0
166,962 CINergy Corp. 4,045,124 5,801,929 1.7
84,200 Consolidated Edison Company
of New York 2,991,744 3,983,712 1.2
118,900 DTE Energy Company 4,092,463 5,008,662 1.5
85,000 Duke Energy Co. 3,180,276 5,301,875 1.5
86,000 Edison International 1,925,397 2,445,625 0.7
127,300 GPU, Inc. 4,047,821 4,781,706 1.4
75,200 Houston Industries, Inc. 1,840,708 2,166,700 0.6
239,500 NIPSCO Industries, Inc. 3,715,745 7,005,375 2.0
124,000 New Century Energies, Inc. 3,798,642 5,719,500 1.7
106,000 New York State Electric &
Gas Corp. 3,787,564 4,770,000 1.4
140,500 PECO Energy Co. 4,344,731 4,812,125 1.4
183,000 PacifiCorp 3,657,980 4,128,937 1.2
91,200 Southern Co. 2,022,770 2,565,000 0.8
68,000 TECO Energy, Inc. 1,789,080 1,806,250 0.5
100,000 Texas Utilities Holding Co. 3,506,000 4,250,000 1.2
------------ ------------ -----
55,681,519 72,156,196 21.0
----------------------------------------------------------------------------------------------------------
Utilities-Gas 95,000 Coastal Corp. (The) 1,262,602 2,470,000 0.7
40,000 Enron Corporation 1,842,108 1,692,500 0.5
130,000 MarketSpan Corporation 3,371,550 3,558,750 1.0
168,000 Questar Corp. 2,475,460 2,730,000 0.8
46,300 Sonat, Inc. 1,537,769 1,252,994 0.4
60,000 Williams Companies, Inc. (The) 1,978,230 1,380,000 0.4
------------ ------------ -----
12,467,719 13,084,244 3.8
----------------------------------------------------------------------------------------------------------
Utilities-Water 86,200 Philadelphia Suburban Corporation 1,869,462 2,192,712 0.7
----------------------------------------------------------------------------------------------------------
Total Common Stocks in the
United States 94,132,851 127,625,951 37.2
==============================================================================================================================
Total Investments in Common
Stocks & Warrants 192,884,374 314,521,355 91.6
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Face
Amount Short-Term Securities
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
Commercial Paper* $15,410,000 General Motors Acceptance Corp.,
5.81% due 9/01/1998 15,410,000 15,410,000 4.5
8,000,000 Park Avenue Receivables Corp.,
5.55% due 9/17/1998 7,980,267 7,980,267 2.3
------------ ------------ -----
23,390,267 23,390,267 6.8
----------------------------------------------------------------------------------------------------------
US Government 5,000,000 Federal Home Loan Mortgage Corp.,
Agency Obligations* 5.45% due 9/01/1998 5,000,000 5,000,000 1.5
----------------------------------------------------------------------------------------------------------
Total Investments in Short-Term
Securities 28,390,267 28,390,267 8.3
==============================================================================================================================
Total Investments $221,274,641 342,911,622 99.9
============
Other Assets Less
Liabilities 477,349 0.1
------------ -----
Net Assets $343,388,971 100.0%
============ =====
==============================================================================================================================
Net Asset Class A-Based on net assets of $37,565,841 and
Value: 2,177,254 shares outstanding $ 17.25
============
Class B-Based on net assets of $291,347,506 and
16,940,707 shares outstanding $ 17.20
============
Class C-Based on net assets of $6,036,907 and
351,858 shares outstanding $ 17.16
============
Class D-Based on net assets of $8,438,717 and
488,916 shares outstanding $ 17.26
============
==============================================================================================================================
</TABLE>
* Commercial Paper and certain US Government Agency Obligations are traded
on a discount basis; the interest rates shown reflect the discount rates
paid at the time of purchase by the Fund.
(a) Warrants entitle the Fund to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
(b) American Depositary Receipts (ADR).
(c) Formerly Generale des Eaux S.A.
8 & 9
<PAGE>
Merrill Lynch Global Utility Fund, Inc., August 31, 1998
PORTFOLIO INFORMATION
Worldwide Investments as of August 31, 1998
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
Telecom Italia Mobile S.p.A. ...................................... 5.3%
Telefonica de Espana, S.A. ........................................ 5.2
Telecom Italia S.p.A.
(Registered Non-Convertible) ..................................... 4.2
Vivendi S.A. ...................................................... 3.9
Telecom Italia S.p.A. ............................................. 3.4
Vodafone Group PLC (ADR) .......................................... 3.2
Australian Gas & Light Co., Ltd. (The) ............................ 3.2
British Telecommunications PLC .................................... 2.7
Portugal Telecom, S.A. (ADR) ...................................... 2.5
Tele Danmark A/S (ADR) ............................................ 2.4
Additions
AEM S.p.A.
Mannesmann AG
*NOVA Corporation
Deletions
Central Costanera S.A. (ADR)
Distribuidora Chilectra Metropolitana S.A. (ADR)
*NOVA Corporation
Telecom Argentina STET S.A. (ADR)
Telefonica de Argentina S.A. (ADR)
Telefonica del Peru S.A. (ADR)
*Added and deleted in the same quarter.
10
<PAGE>
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Walter D. Rogers, Senior Vice President and
Portfolio Manager
Donald C. Burke, Vice President
Gerald M. Richard, Treasurer
Thomas D. Jones, III, Secretary
Custodian
The Chase Manhattan Bank, N.A.
4 MetroTech Center, 18th Floor
Brooklyn, NY 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
11
<PAGE>
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.
Merrill Lynch
Global Utility Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #11693-8/98
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