UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-8327
Name of Fund: Merrill Lynch Global Growth Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
Merrill Lynch Global Growth Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 08/31/03
Date of reporting period: 09/01/02 - 08/31/03
Item 1 - Attach shareholder report
(BULL LOGO)
Merrill Lynch Investment Managers
www.mlim.ml.com
Merrill Lynch
Global Growth
Fund, Inc.
Annual Report
August 31, 2003
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.
A description of the policies and procedures that the Fund uses
to determine how to vote proxies relating to portfolio securities
is available (1) without charge, upon request, by calling toll-free
1-800-MER-FUND (1-800-637-3863); (2) on www.mutualfunds.ml.com; and
(3) on the Securities and Exchange Commission's website at
http://www.sec.gov.
Merrill Lynch Global Growth Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Merrill Lynch Global Growth Fund, Inc.
Portfolio Information As of August 31, 2003
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
General Electric Company United States 3.4%
3M Co. United States 3.2
HSBC Holdings PLC United Kingdom 3.2
Samsung Electronics South Korea 2.9
Intel Corporation United States 2.6
Porsche AG (Preferred) Germany 2.5
Unicredito Italiano SpA Italy 2.3
Citigroup, Inc. United States 2.1
ENI SpA Italy 2.0
Hennes & Mauritz AB 'B' Sweden 1.8
Percent of
Five Largest Industries* Net Assets
Semiconductors & Semiconductor Equipment 8.5%
Oil & Gas 8.2
Industrial Conglomerates 7.6
Metals & Mining 7.4
Commercial Banks 7.3
*For Fund compliance purposes, "Industries" means any one or more
of the industry sub-classifications used by one or more widely
recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for
purposes of this report, which may combine such industry sub-
classifications for reporting ease.
Electronic Delivery
The Fund is now offering electronic delivery of communications
to its shareholders. In order to receive this service, you must
register your account and provide us with e-mail information.
To sign up for this service, simply access this website
http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification
number (PIN). You will need this PIN should you wish to update your
e-mail address, choose to discontinue this service and/or make any
other changes to the service. This service is not available for
certain retirement accounts at this time.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
A Letter From the President
Dear Shareholder
Now more than half behind us, 2003 has been a meaningful year in
many respects. After three sub par years for equity markets, we
finally saw hopeful signs for a sustained economic recovery and an
accompanying market upturn.
As combat gave way to restructuring in Iraq, equity markets rallied
in the United States and in some European and Latin American
countries, with a pickup in Asian markets following shortly after.
The United States also benefited from stimulative monetary and
fiscal policy, low inflation, improving corporate profits and
tightening credit spreads. In Europe, the central bank initiated
more active monetary policy in an effort to rouse economic growth.
Meanwhile, the economies of several Asian countries, particularly
China, have experienced strong economic growth so far in 2003.
The events and efforts of the past several months appear to have
made an impression on investors and the markets. While the S&P 500
and the MSCI World indexes were both in negative territory for the
six-month period ended February 28, 2003, both rebounded over the
six months that followed. From February 28, 2003 to August 31, 2003,
the S&P 500 and the MSCI World indexes returned +20.88% and +21.56%,
respectively.
Against this backdrop, our portfolio managers continued to work
diligently to deliver on our commitment to provide superior
performance within reasonable expectations for risk and return. This
included striving to outperform our peers and the market indexes.
With that said, remember also that the advice and guidance of a
skilled financial advisor often can mean the difference between
fruitful and fruitless investing. A financial professional can help
you choose those investments that will best serve you as you plan
for your financial future.
Finally, I am proud to premiere a new look to our shareholder
communications. Our portfolio manager commentaries have been trimmed
and organized in such a way that you can get the information you
need at a glance, in plain language. Today's markets are confusing
enough. We want to help you put it all in perspective. The report's
new size also allows us certain mailing efficiencies. Any cost
savings in production or postage are passed on to the Fund and,
ultimately, to Fund shareholders.
We thank you for trusting Merrill Lynch Investment Managers with
your investment assets, and we look forward to serving you in the
months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
A Discussion With Your Fund's Portfolio Manager
Strength during the second half of the Fund's fiscal year helped
offset weakness earlier in the period, when the global stock market
rally favored lower-quality and smaller-capitalization stocks.
How did the Fund perform during the fiscal year in light of the
existing market conditions?
For the fiscal year ended August 31, 2003, Merrill Lynch Global
Growth Fund, Inc.'s Class A, Class B, Class C and Class I Shares had
total returns of +8.06%, +7.17%, +7.17% and +8.29%, respectively.
(Fund results shown do not reflect sales charges and would be lower
if sales charges were included. Complete performance information can
be found on pages 6 - 10 of this report to shareholders.) The
unmanaged benchmark Morgan Stanley Capital International (MSCI)
World Index (in U.S. dollars) had a total return of +10.92% for the
same period. The Fund's peer group of Lipper Global Funds, which
includes the investment returns of all global equity funds
regardless of investment style or market capitalization, posted an
average return of +11.16% for the 12-month period.
Merrill Lynch Global Growth Fund focuses its investments on what we
believe are the highest-quality and largest-capitalization growth
stocks in the benchmark index. As a group, these companies provided
lower total investment returns during the fiscal period than the
lower-quality, smaller-capitalization growth stocks in the MSCI
World Index. This dynamic contributed to the Fund's relative
underperformance during the period.
Specific holdings that had a negative influence on the Fund's total
investment returns during the year were Porsche AG, Verizon
Communications, General Dynamics Corp., AOL Time Warner Inc.,
General Electric Co. and HCA Inc. We liquidated our positions in
Verizon Communications, AOL Time Warner Inc. and HCA Inc. based on a
change in our fundamental business outlook for these companies.
Although the Fund underperformed its benchmark in the first half of
the fiscal year, it outperformed during the second half of the
period. For the six-month period ended August 31, 2003, the Fund's
Class A, Class B, Class C and Class I Shares had total returns of
+22.71%, +22.20%, +22.20% and +22.85%, respectively. This compared
to a return of +21.56% for the benchmark MSCI World Index and an
average return of +22.42% for its mutual fund peer group. The Fund's
strong performance in the second half of the fiscal year is
attributed to our strategic positioning and stock selection in the
information technology, energy and health care sectors. The
strongest relative performance came in the latest months of the
fiscal year.
What changes were made to the portfolio during the period?
During the first half of the fiscal year, we substantially increased
our weighting in the global energy sector by adding stocks in
Europe, Canada, Australia and China. At the end of February 2003,
the portfolio's weighting in this sector was nearly 15% of net
assets compared to the MSCI World Stock Index weighting of
approximately 8%. Our investments in the energy sector provided a
meaning-ful benefit to relative and absolute performance for the
12-month period. During the second half of the fiscal year, we
reduced our overweight position in the energy sector by selling
positions in the U.S. and Europe, as we saw the greatest returns
from our energy stocks in the Asia-Pacific region. Nevertheless, at
the close of the period, the Fund remained overweight in the global
energy sector relative to the benchmark index.
Since June, we began increasing the number of information technology
(IT) stocks in the portfolio to an overweight position. We believe
that data on backlogs, shipments and prices of semiconductor memory
devices are indicative of a recovery in some sectors of the
industry. During the fiscal year, the Fund benefited from favorable
stock selection in the IT sector while maintaining a weighting only
slightly above the benchmark. Some of the most important
contributors in this sector included Samsung Electronics Co. Ltd.,
ASML Holding N.V., Electronics Arts Inc., Intel Corporation and
Altera Corporation. The majority of the positive performance came
from stock selection during the second half of the fiscal year.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
We also added to our position in the industrials sector and ended
the period with a relative overweighting. Companies added to the
portfolio included General Electric Company, Siemens AG, Cathay
Pacific Airways Ltd., A.P. Moeller-Maersk A/S and Adecco SA.
In the consumer staples sector, we moved the Fund from an overweight
position to an almost equally underweight position. We liquidated
several stock investments based on what we believe were relatively
high valuations. Among them were Unilever PLC, Carrefour S.A.,
Unilever N.V., Clorox Co., Procter & Gamble Co. and Wal-Mart
Stores, Inc. We also sold the stocks of companies where business
fundamentals did not develop as positively as we had anticipated.
These included The Coca-Cola Co., Nestle S.A., Heineken N.V., Diageo
PLC and Allied Domecq PLC.
In the health care sector, the Fund remained underweight versus
the benchmark in terms of its investments in the major global
pharmaceutical companies. This underweight position contributed
meaningfully to the Fund's relative performance for the fiscal year.
Making the most significant contribution to performance were Amgen
Inc., Gilead Sciences Inc. and Alcon Inc. We sold our positions in
the U.S. hospital management industry because of an unanticipated
deterioration in the sector's strategic business fundamentals. The
net assets from these sales were shifted into the stocks of major
U.S. health maintenance organizations.
How would you characterize the portfolio's position at the close of
the period?
The portfolio is structured to benefit from an anticipated
improvement in the real rate of growth of consumer spending in the
United States. This forecast assumes that U.S.-based small
businesses and corporations will respond to the recently enacted
capital investment tax incentives. We also anticipate a continuation
of the above-average rates of real economic growth in China. In the
last three months of the period, we saw some recovery in travel and
business activity in Hong Kong and the Asia-Pacific region as fears
of the SARS infection abated. These expectations are reflected in
the Fund's overweight positions in the consumer discretionary,
materials, information technology and energy sectors.
In the Asia-Pacific region, we ended the period underweight in
Japanese stocks and modestly overweight in stocks in South Korea,
China, Hong Kong and Australia. We are focused on companies that we
believe could benefit from what we perceive as cyclical growth
opportunities in specific business and geographic markets. In our
opinion, the Fund is positioned for a global recovery in real rates
of growth and corporate profitability.
Lawrence R. Fuller
Vice President and Portfolio Manager
September 13, 2003
Effective April 14, 2003, the share class names for the Merrill
Lynch family of mutual funds were changed to be consistent with the
standard share classes of most other mutual fund families. As of
that date, all Class A Shares were redesignated Class I Shares. At
the same time, Class D Shares were redesignated Class A Shares.
There are no changes to the Class B or Class C share class labels.
Trading symbols have not changed nor have current eligibility rules
or pricing structures. This redesignation of share classes does not
impact your investment in any way.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Performance Data
About Fund Performance
Effective April 14, 2003, Class A Shares were redesignated Class I
Shares and Class D Shares were redesignated Class A Shares.
Investors are able to purchase shares of the Fund through multiple
pricing alternatives:
* Class A Shares incur a maximum initial sales charge of 5.25% and
an account maintenance fee of 0.25% (but no distribution fee).
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% declining to 0% after six years. All Class B Shares
purchased prior to June 1, 2001 will maintain the four-year
schedule. In addition, Class B Shares are subject to a distribution
fee of 0.75% and an account maintenance fee of 0.25%. These shares
automatically convert to Class A Shares after approximately eight
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 I Shares incur a maximum initial sales charge (front-end
load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class I Shares are available only to eligible
investors.
* Class R Shares do not incur a maximum sales charge (front-end
load) or deferred sales charge. These shares are subject to a
distribution fee of 0.25% and an account maintenance fee of 0.25%.
Class R Shares are available only to certain retirement plans.
None of the past results shown should be considered a representation
of future performance. Performance results do not reflect the
deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. Figures shown in
each of the following 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.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Performance Data (continued)
Recent Performance Results
6-Month 12-Month Since Inception
As of August 31, 2003 Total Return Total Return Total Return
ML Global Growth Fund, Inc.--Class A Shares* +22.17% + 8.06% - 6.46%
ML Global Growth Fund, Inc.--Class B Shares* +22.20 + 7.17 -10.60
ML Global Growth Fund, Inc.--Class C Shares* +22.20 + 7.17 -10.65
ML Global Growth Fund, Inc.--Class I Shares* +22.85 + 8.29 - 5.06
ML Global Growth Fund, Inc.--Class R Shares* +23.17 -- +13.69
MSCI World Index** +21.56 +10.92 +7.16/+12.70
*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 from 10/31/97 for Class A, Class B, Class
C & Class I Shares and from 1/03/03 for Class R Shares.
**This unmanaged market capitalization-weighted Index is comprised
of a representative sampling of large-, medium- and small-
capitalization companies in 22 countries, including the United
States. Since inception total returns are from 10/31/97 and 1/03/03,
respectively.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Performance Data (continued)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
A line graph illustrating the growth of a $10,000 investment in
ML Global Growth Fund, Inc.++ Class A and Class B Shares* compared
to a similar investment in MSCI World Index++++. Values illustrated
are as follows:
ML Global Growth Fund, Inc.++
Class A Shares*
Date Value
10/31/1997** $ 9,475.00
August 1998 $10,186.00
August 1999 $13,059.00
August 2000 $18,437.00
August 2001 $11,140.00
August 2002 $ 8,202.00
August 2003 $ 8,863.00
ML Global Growth Fund, Inc.++
Class B Shares*
Date Value
10/31/1997** $10,000.00
August 1998 $10,680.00
August 1999 $13,592.00
August 2000 $19,035.00
August 2001 $11,419.00
August 2002 $ 8,341.00
August 2003 $ 8,867.00
MSCI World Index++++
Date Value
10/31/1997** $10,000.00
August 1998 $10,390.00
August 1999 $13,823.00
August 2000 $15,638.00
August 2001 $11,668.00
August 2002 $ 9,661.00
August 2003 $10,716.00
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Global Growth Fund, Inc. invests primarily in equity securities
with a particular emphasis on companies that have exhibited above-
average growth rates in earnings.
++++This unmanaged market capitalization-weighted Index is comprised
of a representative sampling of large-, medium- and small-
capitalization companies in 22 countries, including the United
States.
Past performance is not predictive of future performance.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
One Year Ended 8/31/03 +8.06% +2.38%
Five Years Ended 8/31/03 -2.74 -3.79
Inception (10/31/97)
through 8/31/03 -1.14 -2.05
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
One Year Ended 8/31/03 +7.17% +3.17%
Five Years Ended 8/31/03 -3.49 -3.81
Inception (10/31/97)
through 8/31/03 -1.90 -2.04
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after six years.
**Assuming payment of applicable contingent deferred sales charge.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Performance Data (continued)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
A line graph illustrating the growth of a $10,000 investment in
ML Global Growth Fund, Inc.++ Class C and Class I Shares* compared
to a similar investment in MSCI World Index++++. Values illustrated
are as follows:
ML Global Growth Fund, Inc.++
Class C Shares*
Date Value
10/31/1997** $10,000.00
August 1998 $10,680.00
August 1999 $13,588.00
August 2000 $19,030.00
August 2001 $11,425.00
August 2002 $ 8,337.00
August 2003 $ 8,935.00
ML Global Growth Fund, Inc.++
Class I Shares*
Date Value
10/31/1997** $ 9,475.00
August 1998 $10,214.00
August 1999 $13,121.00
August 2000 $18,562.00
August 2001 $11,251.00
August 2002 $ 8,307.00
August 2003 $ 8,996.00
MSCI World Index++++
Date Value
10/31/1997** $10,000.00
August 1998 $10,390.00
August 1999 $13,823.00
August 2000 $15,638.00
August 2001 $11,668.00
August 2002 $ 9,661.00
August 2003 $10,716.00
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Global Growth Fund, Inc. invests primarily in equity securities
with a particular emphasis on companies that have exhibited above-
average growth rates in earnings.
++++This unmanaged market capitalization-weighted Index is comprised
of a representative sampling of large-, medium- and small-
capitalization companies in 22 countries, including the United
States.
Past performance is not predictive of future performance.
Average Annual Total Return
% Return % Return
Without CDSC With CDSC**
Class C Shares*
One Year Ended 8/31/03 +7.17% +6.17%
Five Years Ended 8/31/03 -3.51 -3.51
Inception (10/31/97)
through 8/31/03 -1.91 -1.91
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after one year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class I Shares*
One Year Ended 8/31/03 +8.29% +2.60%
Five Years Ended 8/31/03 -2.51 -3.55
Inception (10/31/97)
through 8/31/03 -0.89 -1.80
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Performance Data (concluded)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
A line graph illustrating the growth of a $10,000 investment in
ML Global Growth Fund, Inc.++ Class R Shares* compared to a similar
investment in MSCI World Index++++. Values illustrated are as
follows:
ML Global Growth Fund, Inc.++
Class R Shares*
Date Value
1/03/2003** $10,000.00
August 2003 $11,369.00
MSCI World Index++++
Date Value
1/03/2003** $10,000.00
August 2003 $11,270.00
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of operations.
++ML Global Growth Fund, Inc. invests primarily in equity securities
with a particular emphasis on companies that have exhibited above-
average growth rates in earnings.
++++This unmanaged market capitalization-weighted Index is comprised
of a representative sampling of large-, medium- and small-
capitalization companies in 22 countries, including the United
States.
Past performance is not predictive of future performance.
Aggregate Total Return
% Return Without
Sales Charge
Class R Shares
Inception (1/03/03)
through 8/31/03 +13.69%
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Schedule of Investments
LATIN Value Percent of
AMERICA Industry* Shares Held Common Stock (in U.S. dollars) Net Assets
Brazil Metals & Mining 32,000 Companhia Vale do Rio Doce $ 1,197,433 0.2%
210,900 Companhia Vale do Rio Doce (ADR)(a) 7,198,017 1.1
Total Common Stock in Latin America
(Cost--$6,689,867) 8,395,450 1.3
NORTH AMERICA
Canada Auto Components 133,500 Magna International Inc. 'A' 9,777,072 1.5
Communications 2,121,000 ++Nortel Networks Corporation 6,880,655 1.1
Equipment
Gas Utilities 352,700 TransCanada Corporation 6,354,016 1.0
Media 388,800 Rogers Communications, Inc. 'B' 5,552,484 0.9
Metals & Mining 412,200 Barrick Gold Corporation 8,397,630 1.3
Oil & Gas 230,300 Petro-Canada 9,068,223 1.4
390,700 Suncor Energy, Inc. 7,323,072 1.1
---------------- ------
16,391,295 2.5
Real Estate 66,750 ++MI Developments, Inc. 'A' 1,328,119 0.2
Total Common Stock in Canada 54,681,271 8.5
United States Air Freight & 101,400 United Parcel Service, Inc. (Class B) 6,363,864 1.0
Logistics
Biotechnology 125,000 ++Amgen Inc. 8,237,500 1.3
155,600 ++Gilead Sciences, Inc. 10,378,520 1.6
---------------- ------
18,616,020 2.9
Communications 523,600 ++Cisco Systems, Inc. 10,026,940 1.6
Equipment 150,400 ++UTStarcom, Inc. 6,461,184 1.0
---------------- ------
16,488,124 2.6
Diversified 308,500 Citigroup Inc. 13,373,475 2.1
Financial Services
Energy Equipment 54,800 Baker Hughes Incorporated 1,833,608 0.3
& Service 72,900 Diamond Offshore Drilling, Inc. 1,472,580 0.2
---------------- ------
3,306,188 0.5
Food & Staples 100,800 SYSCO Corporation 3,171,168 0.5
Retailing
Health Care 178,300 ++Boston Scientific Corporation 10,715,830 1.7
Equipment & 150,100 Medtronic, Inc. 7,441,958 1.1
Supplies 88,700 Stryker Corporation 6,723,460 1.1
116,900 ++Varian Medical Systems, Inc. 6,528,865 1.0
---------------- ------
31,410,113 4.9
Health Care 94,300 ++Anthem, Inc. 6,902,760 1.1
Providers & 159,800 UnitedHealth Group Incorporated 7,898,914 1.2
Services 72,600 ++WellPoint Health Networks Inc. 5,662,800 0.9
---------------- ------
20,464,474 3.2
Hotels, 346,000 International Game Technology 8,940,640 1.4
Restaurants &
Leisure
Industrial 146,800 3M Co. 20,914,596 3.2
Conglomerates 736,500 General Electric Company 21,778,305 3.4
---------------- ------
42,692,901 6.6
Internet & Catalog 181,200 ++eBay Inc. 10,062,036 1.6
Retail
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Schedule of Investments (continued)
NORTH AMERICA Value Percent of
(concluded) Industry* Shares Held Common Stock (in U.S. dollars) Net Assets
United States Machinery 173,900 Deere & Company $ 9,827,089 1.5%
(concluded) 100,100 ITT Industries, Inc. 6,514,508 1.0
---------------- ------
16,341,597 2.5
Semiconductors 378,300 ++Altera Corporation 8,489,052 1.3
& Semiconductor 582,600 Intel Corporation 16,674,012 2.6
Equipment 230,600 ++Xilinx, Inc. 7,111,704 1.1
---------------- ------
32,274,768 5.0
Software 318,200 ++Citrix Systems, Inc. 6,551,738 1.0
77,200 ++Electronic Arts Inc. 6,928,700 1.1
162,800 ++Mercury Interactive Corporation 7,145,292 1.1
140,000 ++Symantec Corporation 8,040,200 1.2
---------------- ------
28,665,930 4.4
Specialty Retail 184,300 Lowe's Companies, Inc. 10,110,698 1.6
381,000 The TJX Companies, Inc. 8,252,460 1.3
---------------- ------
18,363,158 2.9
Total Common Stock in the United States 270,534,456 42.1
Total Common Stock in North America
(Cost--$286,957,275) 325,215,727 50.6
PACIFIC BASIN
Australia Commercial Banks 257,200 Australia and New Zealand Banking Group Ltd. 2,916,602 0.5
Food & Staples 563,100 Woolworths Limited 4,286,126 0.7
Retailing
Industrial 195,800 Wesfarmers Limited 3,572,562 0.5
Conglomerates
Media 524,400 The News Corporation Limited 4,480,316 0.7
Metals & Mining 1,322,300 BHP Billiton Limited 9,354,536 1.4
Oil & Gas 795,300 Woodside Petroleum Limited 6,872,019 1.1
Total Common Stock in Australia 31,482,161 4.9
China Metals & Mining 23,300,000 Aluminum Corporation of China Limited 'H' 7,095,143 1.1
Total Common Stock in China 7,095,143 1.1
Hong Kong Airlines 4,625,000 Cathay Pacific Airways 8,005,475 1.3
Construction 1,798,000 Cheung Kong Infrastructure Holdings Limited 3,723,092 0.6
Materials
Electric 6,831,400 Huaneng Power International, Inc. 'H' 9,372,060 1.5
Utilities
Electrical 3,103,000 Johnson Electric Holdings Limited 4,833,922 0.7
Equipment
Oil & Gas 2,732,000 CNOOC Limited 5,114,170 0.8
15,906,000 China Petroleum and Chemical Corporation 'H' 4,843,577 0.7
20,834,000 PetroChina Company Limited 7,279,151 1.1
---------------- ------
17,236,898 2.6
Specialty Retail 782,000 Esprit Holdings Limited 1,945,136 0.3
Total Common Stock in Hong Kong 45,116,583 7.0
Japan Metals & Mining 170,500 JFE Holdings, Inc. 3,433,965 0.5
Office Electronics 130,000 Canon, Inc. 6,250,429 1.0
Total Common Stock in Japan 9,684,394 1.5
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Schedule of Investments (continued)
PACIFIC BASIN Value Percent of
(concluded) Industry* Shares Held Common Stock (in U.S. dollars) Net Assets
South Korea Automobiles 235,000 Hyundai Motor Company Ltd. $ 7,818,375 1.2%
Chemicals 45,500 LG Chem, Ltd. 1,996,478 0.3
Diversified 81,200 KT Corporation 3,090,872 0.5
Telecommunication
Services
Metals & Mining 31,600 POSCO 3,727,902 0.6
Semiconductors 49,600 Samsung Electronics 18,311,903 2.9
& Semiconductor
Equipment
Total Common Stock in South Korea 34,945,530 5.5
Total Common Stock in the Pacific Basin
(Cost--$104,045,508) 128,323,811 20.0
WESTERN EUROPE
Denmark Marine 1,175 A/S Dampskibsselskabet Svendborg 7,713,519 1.2
Total Common Stock in Denmark 7,713,519 1.2
Finland Communications 325,000 Nokia Oyj 5,323,716 0.8
Equipment
Total Common Stock in Finland 5,323,716 0.8
France Automobiles 203,000 PSA Peugeot Citroen 9,264,857 1.4
Energy Equipment 30,100 Coflexip 3,106,397 0.5
& Service
Media 181,200 Societe Television Francaise 1 5,504,654 0.8
Semiconductors 145,000 STMicroelectronics NV 3,605,777 0.6
& Semiconductor
Equipment
Total Common Stock in France 21,481,685 3.3
Germany Distributors 70,500 Medion AG 2,832,137 0.4
Industrial 55,000 Siemens AG 3,405,685 0.5
Conglomerates
Software 12,800 SAP AG (Systeme, Anwendungen, Produkte in der 1,536,006 0.3
Datenverarbeitung)
Total Common Stock in Germany 7,773,828 1.2
Italy Commercial Banks 3,201,000 Unicredito Italiano SpA 14,886,901 2.3
Oil & Gas 849,500 ENI SpA 12,833,481 2.0
Total Common Stock in Italy 27,720,382 4.3
Russia 136,750 YUKOS (ADR)(a) 7,876,800 1.2
Total Common Stock in Russia 7,876,800 1.2
Spain Commercial Banks 193,900 Banco Popular Espanol SA 8,728,193 1.3
Construction 74,900 Actividades de Construccion y Servicios (ACS), SA 3,138,822 0.5
& Engineering 152,700 Grupo Dragados SA 3,093,129 0.5
---------------- ------
6,231,951 1.0
IT Services 1,050,000 Amadeus Global Travel Distribution SA 'A' 7,032,048 1.1
Specialty Retail 252,600 Industria de Disenso Textil, SA 6,281,512 1.0
Total Common Stock in Spain 28,273,704 4.4
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Schedule of Investments (concluded)
WESTERN EUROPE Value Percent of
(concluded) Industry* Shares Held Common Stock (in U.S. dollars) Net Assets
Sweden Specialty Retail 546,100 Hennes & Mauritz AB 'B' $ 11,495,192 1.8%
Total Common Stock in Sweden 11,495,192 1.8
Switzerland Commercial Services 130,000 Adecco SA (Registered Shares) 6,571,704 1.0
& Supplies
Health Care 113,700 Alcon, Inc. 5,940,825 1.0
Equipment & Supplies
Total Common Stock in Switzerland 12,512,529 2.0
United Commercial 1,571,700 HSBC Holdings PLC 20,211,481 3.2
Kingdom Banks
Household 276,500 Reckitt Benckiser PLC 5,204,512 0.8
Products
Media 382,700 ++British Sky Broadcasting Group PLC ("BSkyB") 4,007,323 0.6
Metals & Mining 356,800 Rio Tinto PLC (Registered Shares) 7,850,366 1.2
Total Common Stock in the United Kingdom 37,273,682 5.8
Total Common Stock in Western Europe
(Cost--$154,120,166) 167,445,037 26.0
PACIFIC BASIN Preferred Stock
Australia Media 473,919 The News Corporation Limited 3,389,522 0.5
Total Preferred Stock in the Pacific Basin
(Cost--$3,156,733) 3,389,522 0.5
WESTERN EUROPE
Germany Automobiles 37,028 Porsche AG 15,773,376 2.5
Total Preferred Stock in Western Europe
(Cost--$15,031,559) 15,773,376 2.5
Beneficial Interest/
Shares Held Short-Term Securities
$45,602,970 Merrill Lynch Liquidity Series, LLC Money Market
Series (b)(c) 45,602,970 7.1
30,401,980 Merrill Lynch Premier Institutional Fund (b)(c) 30,401,980 4.7
Total Investments in Short-Term Securities
(Cost--$76,004,950) 76,004,950 11.8
Total Investments (Cost--$646,006,058) 724,547,873 112.7
Liabilities in Excess of Other Assets (81,627,936) (12.7)
---------------- ------
Net Assets $ 642,919,937 100.0%
================ ======
*For Fund compliance purposes, "Industry" means any one or more of
the industry sub-classifications used by one or more widely
recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for
purposes of this report, which may combine such industry sub-
classifications for reporting ease.
++Non-income producing security.
(a)American Depositary Receipts (ADR).
(b)Security was purchased with the cash proceeds from securities
loans.
(c)Investments in companies considered to be an affiliate of the
Fund (such companies are defined as "Affiliated Companies" in
Section 2(a)(3) of the Investment Company Act of 1940) are as
follows:
Dividend/
Net Interest
Affiliate Activity Income
Merrill Lynch Liquidity Series, LLC
Money Market Series $(30,317,456) $201,486
Merrill Lynch Premier Institutional Fund (78,849,361) $187,766
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Statement of Assets and Liabilities
As of August 31, 2003
Assets
Investments, at value (including securities loaned of $67,520,347)
(identified cost--$646,006,058) $ 724,547,873
Foreign cash (cost--$6,846,999) 6,738,423
Receivables:
Securities sold $ 12,898,754
Dividends 1,684,189
Capital shares sold 121,981
Securities lending--net 5,510
Interest 2,822 14,713,256
---------------
Prepaid registration fees and other assets 199,045
---------------
Total assets 746,198,597
---------------
Liabilities
Collateral on securities loaned, at value 76,004,950
Payables:
Securities purchased 18,214,295
Custodian bank 6,739,606
Capital shares redeemed 1,184,746
Investment adviser 360,988
Other affiliates 339,067
Distributor 332,139 27,170,841
---------------
Accrued expenses and other liabilities 102,869
---------------
Total liabilities 103,278,660
---------------
Net Assets
Net assets $ 642,919,937
===============
Net Assets Consist of
Class A Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized $ 1,466,394
Class B Shares of Common Stock, $.10 par value, 300,000,000 shares
authorized 4,475,001
Class C Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized 987,312
Class I Shares of Common Stock, $.10 par value, 100,000,000 shares
authorized 1,757,021
Class R Shares of Common Stock, $.10 par value, 300,000,000 shares
authorized 2
Paid-in capital in excess of par 1,293,389,368
Accumulated investment loss--net $ (1,222,767)
Accumulated realized capital losses on investments and foreign
currency transactions--net (736,335,217)
Unrealized appreciation on investments and foreign currency
transactions--net 78,402,823
---------------
Total accumulated losses--net (659,155,161)
---------------
Net assets $ 642,919,937
===============
Net Asset Value
Class A--Based on net assets of $110,091,814 and 14,663,939 shares
outstanding $ 7.51
===============
Class B--Based on net assets of $327,482,819 and 44,750,015 shares
outstanding $ 7.32
===============
Class C--Based on net assets of $72,248,715 and 9,873,115 shares
outstanding $ 7.32
===============
Class I--Based on net assets of $133,096,475 and 17,570,212 shares
outstanding $ 7.58
===============
Class R--Based on net assets of $113.62 and 15.385 shares outstanding $ 7.39
===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Statement of Operations
For the Year Ended August 31, 2003
Investment Income
Dividends (net of $876,771 foreign withholding tax) $ 9,655,484
Interest 471,394
Securities lending--net 389,252
---------------
Total income 10,516,130
---------------
Expenses
Investment advisory fees $ 4,404,556
Account maintenance and distribution fees--Class B 3,494,392
Transfer agent fees--Class B 1,206,645
Account maintenance and distribution fees--Class C 754,069
Transfer agent fees--Class A 317,329
Transfer agent fees--Class C 274,998
Account maintenance fees--Class A 266,128
Accounting services 245,576
Transfer agent fees--Class I 162,875
Professional fees 101,827
Custodian fees 88,276
Directors' fees and expenses 69,724
Printing and shareholder reports 69,161
Registration fees 37,030
Pricing fees 14,707
Other 48,064
---------------
Total expenses 11,555,357
---------------
Investment loss--net (1,039,227)
---------------
Realized & Unrealized Gain (Loss) on Investments & Foreign Currency Transactions--Net
Realized loss on:
Investments--net (199,833,614)
Foreign currency transactions--net (2,135,850) (201,969,464)
---------------
Change in unrealized appreciation/depreciation on:
Investments--net 234,006,979
Foreign currency transactions--net (278,718) 233,728,261
--------------- ---------------
Total realized and unrealized gain on investments and foreign currency
transactions--net 31,758,797
---------------
Net Increase in Net Assets Resulting from Operations $ 30,719,570
===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Statements of Changes in Net Assets
For the Year Ended
August 31,
Increase (Decrease) in Net Assets: 2003 2002
Operations
Investment loss--net $ (1,039,227) $ (9,227,449)
Realized loss on investments and foreign currency transactions--net (201,969,464) (277,713,019)
Change in unrealized appreciation/depreciation on investments and
foreign currency transactions--net 233,728,261 (45,374,886)
--------------- ---------------
Net increase (decrease) in net assets resulting from operations 30,719,570 (332,315,354)
--------------- ---------------
Capital Share Transactions
Net decrease in net assets derived from capital share transactions (125,144,756) (570,533,138)
--------------- ---------------
Net Assets
Total decrease in net assets (94,425,186) (902,848,492)
Beginning of year 737,345,123 1,640,193,615
--------------- ---------------
End of year* $ 642,919,937 $ 737,345,123
=============== ===============
*Accumulated investment loss--net $ (1,222,767) $ (3,133,043)
=============== ===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Financial Highlights
The following per share data and ratios have been derived Class A+++++
from information provided in the financial statements.
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
Per Share Operating Performance
Net asset value, beginning of year $ 6.95 $ 9.44 $ 17.95 $ 13.51 $ 10.75
---------- ---------- ---------- ---------- ----------
Investment income (loss)--net++ .03 (.02) --+++ (.06) .07
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .53 (2.47) (6.64) 5.50 2.94
---------- ---------- ---------- ---------- ----------
Total from investment operations .56 (2.49) (6.64) 5.44 3.01
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Realized gain on investments--net -- -- (.58) (1.00) (.18)
In excess of realized gain on
investments--net -- -- (1.29) -- (.07)
---------- ---------- ---------- ---------- ----------
Total distributions -- -- (1.87) (1.00) (.25)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 7.51 $ 6.95 $ 9.44 $ 17.95 $ 13.51
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 8.06% (26.38%) (39.58%) 41.18% 28.21%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 1.42% 1.31% 1.18% 1.12% 1.14%
========== ========== ========== ========== ==========
Investment income (loss)--net .40% (.18%) (.001%) (.35%) .51%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 110,092 $ 130,310 $ 240,027 $ 511,367 $ 301,552
========== ========== ========== ========== ==========
Portfolio turnover 121.00% 105.73% 126.37% 75.48% 46.91%
========== ========== ========== ========== ==========
*Total investment return excludes the effects of sales charges.
++Based on average shares outstanding.
+++Amount is less than $(.01) per share.
+++++Effective April 14, 2003, Class D Shares were redesignated
Class A Shares.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Financial Highlights (continued)
The following per share data and ratios have been derived Class B
from information provided in the financial statements.
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
Per Share Operating Performance
Net asset value, beginning of year $ 6.83 $ 9.35 $ 17.75 $ 13.39 $ 10.68
---------- ---------- ---------- ---------- ----------
Investment loss--net++ (.03) (.08) (.10) (.18) (.03)
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .52 (2.44) (6.56) 5.44 2.92
---------- ---------- ---------- ---------- ----------
Total from investment operations .49 (2.52) (6.66) 5.26 2.89
---------- ---------- ---------- ---------- ----------
Less distributions from:
Realized gain on investments--net -- -- (.54) (.90) (.18)
In excess of realized gain on
investments--net -- -- (1.20) -- --+++
---------- ---------- ---------- ---------- ----------
Total distributions -- -- (1.74) (.90) (.18)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 7.32 $ 6.83 $ 9.35 $ 17.75 $ 13.39
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 7.17% (26.95%) (40.01%) 40.04% 27.27%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 2.22% 2.09% 1.95% 1.88% 1.91%
========== ========== ========== ========== ==========
Investment loss--net (.43%) (.99%) (.77%) (1.11%) (.27%)
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 327,483 $ 456,393 $1,046,889 $2,293,020 $1,677,022
========== ========== ========== ========== ==========
Portfolio turnover 121.00% 105.73% 126.37% 75.48% 46.91%
========== ========== ========== ========== ==========
*Total investment return excludes the effects of sales charges.
++Based on average shares outstanding.
+++Amount is less than $(.01) per share.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Financial Highlights (continued)
The following per share data and ratios have been derived Class C
from information provided in the financial statements.
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
Per Share Operating Performance
Net asset value, beginning of year $ 6.83 $ 9.36 $ 17.76 $ 13.39 $ 10.68
---------- ---------- ---------- ---------- ----------
Investment loss--net++ (.03) (.08) (.10) (.19) (.04)
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .52 (2.45) (6.56) 5.45 2.93
---------- ---------- ---------- ---------- ----------
Total from investment operations .49 (2.53) (6.66) 5.26 2.89
---------- ---------- ---------- ---------- ----------
Less distributions:
Realized gain on investments--net -- -- (.54) (.89) (.18)
In excess of realized gain on
investments--net -- -- (1.20) -- --
---------- ---------- ---------- ---------- ----------
Total distributions -- -- (1.74) (.89) (.18)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 7.32 $ 6.83 $ 9.36 $ 17.76 $ 13.39
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 7.17% (27.03%) (39.97%) 40.05% 27.23%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 2.24% 2.11% 1.96% 1.89% 1.92%
========== ========== ========== ========== ==========
Investment loss--net (.43%) (.99%) (.78%) (1.12%) (.30%)
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 72,249 $ 95,117 $ 197,356 $ 423,800 $ 302,247
========== ========== ========== ========== ==========
Portfolio turnover 121.00% 105.73% 126.37% 75.48% 46.91%
========== ========== ========== ========== ==========
*Total investment return excludes the effects of sales charges.
++Based on average shares outstanding.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Financial Highlights (continued)
The following per share data and ratios have been derived Class I+++++
from information provided in the financial statements.
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
Per Share Operating Performance
Net asset value, beginning of year $ 7.00 $ 9.48 $ 18.01 $ 13.55 $ 10.78
---------- ---------- ---------- ---------- ----------
Investment income (loss)--net++ .04 --+++ .03 (.02) .11
Realized and unrealized gain (loss)
on investments and foreign currency
transactions--net .54 (2.48) (6.65) 5.51 2.93
---------- ---------- ---------- ---------- ----------
Total from investment operations .58 (2.48) (6.62) 5.49 3.04
---------- ---------- ---------- ---------- ----------
Less distributions:
Realized gain on investments--net -- -- (.59) -- (.18)
In excess of realized gain on
investments--net -- -- (1.32) (1.03) (.09)
---------- ---------- ---------- ---------- ----------
Total distributions -- -- (1.91) (1.03) (.27)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 7.58 $ 7.00 $ 9.48 $ 18.01 $ 13.55
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 8.29% (26.16%) (39.39%) 41.47% 28.46%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 1.16% 1.06% .93% .87% .90%
========== ========== ========== ========== ==========
Investment income (loss)--net .63% .04% .25% (.09%) .88%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 133,096 $ 55,525 $ 155,922 $ 288,517 $ 171,140
========== ========== ========== ========== ==========
Portfolio turnover 121.00% 105.73% 126.37% 75.48% 46.91%
========== ========== ========== ========== ==========
*Total investment return excludes the effects of sales charges.
++Based on average shares outstanding.
+++Amount is less than $.01 per share.
+++++Effective April 14, 2003, Class A Shares were redesignated
Class I Shares.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Financial Highlights (concluded)
Class R
The following per share data and ratios have been derived For the Period
from information provided in the financial statements. January 3, 2003++
to August 31,
Increase (Decrease) in Net Asset Value: 2003
Per Share Operating Performance
Net asset value, beginning of period $ 6.50
----------
Investment income--net++++ .06
Realized and unrealized gain on investments and foreign currency transactions--net .83
----------
Total from investment operations .89
----------
Net asset value, end of period $ 7.39
==========
Total Investment Return**
Based on net asset value per share 13.69%+++
==========
Ratios to Average Net Assets
Expenses 1.64%*
==========
Investment income--net .66%*
==========
Supplemental Data
Net assets, end of period (in thousands) --+++++
==========
Portfolio turnover 121.00%
==========
*Annualized.
**Total investment return excludes the effects of sales charges.
++Commencement of operations.
++++Based on average shares outstanding.
+++Aggregate total investment return.
+++++Amount is less than $1,000.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Notes to Financial Statements
1. Significant Accounting Policies:
Merrill Lynch Global Growth Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The Fund's
financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America, which
may require the use of management accruals and estimates. The Fund
offers multiple classes of shares. Effective April 14, 2003, Class A
Shares were redesignated Class I Shares and Class D Shares were
redesignated Class A Shares. The Fund's financial statements and
financial highlights contained within this report reflect the new
share class redesignation. Shares of Class A and Class I are sold
with a front-end sales charge. Shares of Class B and Class C may be
subject to a contingent deferred sales charge. Class R Shares are
sold only to certain retirement plans. All classes of shares have
identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Class A, Class B, Class C and
Class R Shares bear certain expenses related to the account
maintenance of such shares, and Class B, Class C and Class R 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. Income, expenses (other than expenses attributable to
a specific class) and realized and unrealized gains and losses on
investments and foreign currency transactions are allocated daily to
each class based on its relative net assets. 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 or the Nasdaq National Market are valued at the
last sale price or official closing 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 for long positions, and at the last available
ask price for short positions. Securities traded in the over-the-
counter market are valued at the last available bid price prior to
the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange
designated by or under the authority of the Board of Directors as
the primary market. Securities that are traded both in the over-the-
counter market and on a stock exchange are valued according to the
broadest and most representative market. Options written or
purchased are valued at the last sale price in the case of exchange-
traded options. In the case of options traded in the over-the-
counter market, valuation is the last asked price (options written)
or the last bid price (options purchased). Short-term securities are
valued at amortized cost, which approximates market value. Other
investments, including futures contracts and related options, are
stated at market value. Securities and assets for which market
quotations are not available are valued at fair value as determined
in good faith by or under the direction of the Fund's Board of
Directors. Occasionally, events affecting the values of securities
and other assets may occur between the times at which valuations of
such securities are determined (that is, close of the market on
which such securities trade) and the close of business on the NYSE.
If events (for example, company announcement, natural disasters,
market volatility) occur during such periods that are expected to
materially affect the value for such securities, those securities
may be valued at their fair market value as determined in good faith
by the Fund's Board of Directors or by the investment adviser using
a pricing service and/or procedures approved by the Board of
Directors of the Fund.
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into U.S. dollars. Realized and unrealized gains or
losses from investments include the effects of foreign exchange
rates on investments.
(c) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies both to increase the return of the
Fund and to hedge, or protect, its exposure to interest rate
movement and movements in the securities markets. Losses may arise
due to changes in the value of the contract or if the counterparty
does not perform under the contract.
* Options--The Fund is authorized to write and purchase 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 market value of the option
written.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Notes to Financial Statements (continued)
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward foreign exchange contracts--The Fund is authorized to
enter into forward foreign exchange contracts as a hedge against
either specific transactions or portfolio positions. The contract is
marked-to-market daily and the change in market value is recorded by
the Fund as an unrealized gain or loss. When the contract is closed,
the Fund records a realized gain or loss equal to the difference
between the value at the time it was opened and the value at the
time it was closed.
* 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-U.S. dollar denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated
to be purchased by the Fund.
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.
(d) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required. Under the applicable foreign tax law, a
withholding tax may be imposed on interest, dividends, and capital
gains at various rates.
(e) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Realized gains and losses on security
transactions are determined on the identified cost basis. 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.
(f) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Notes to Financial Statements (continued)
(h) Securities lending--The Fund may lend securities to financial
institutions that provide cash or securities issued or guaranteed by
the U.S. government as collateral, which will be maintained at all
times in an amount equal to at least 100% of the current market
value of the loaned securities. The market value of the loaned
securities is determined at the close of business of the Fund and
any additional required collateral is delivered to the Fund on the
next business day. Where the Fund receives securities as collateral
for the loaned securities, it collects a fee from the borrower. The
Fund typically receives the income on the loaned securities but does
not receive the income on the collateral. Where the Fund receives
cash collateral, it may invest such collateral and retain the amount
earned on such investment, net of any amount rebated to the
borrower. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities
within five business days. The Fund may pay reasonable finder's,
lending agent, administrative and custodial fees in connection with
its loans. In the event that the borrower defaults on its obligation
to return borrowed securities because of insolvency or for any other
reason, the Fund could experience delays and costs in gaining access
to the collateral. The Fund also could suffer a loss where the value
of the collateral falls below the market value of the borrowed
securities, in the event of borrower default or in the event of
losses on investments made with cash collateral.
(i) Custodian bank--The Fund recorded an amount payable to the
custodian bank resulting from a timing difference of security
transaction settlements.
(j) Reclassification--Accounting principles generally accepted in
the United States of America require that certain components of net
assets be adjusted to reflect permanent differences between
financial and tax reporting. Accordingly, the current year's
permanent book/tax differences of $5,085,353 has been reclassified
between paid-in capital in excess of par and accumulated net
investment loss, $56,536,501 has been reclassified between paid-in
capital in excess of par and accumulated net realized capital losses
and $2,135,850 has been reclassified between accumulated net
investment loss and accumulated net realized capital losses. These
reclassifications have no effect on net assets or net asset values
per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Merrill Lynch Investment Managers, L.P. ("MLIM"). The general
partner of MLIM 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 FAM Distributors,
Inc. ("FAMD" or the "Distributor"), which is a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
MLIM 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 based upon the average daily
value of the Fund's net assets at an annual rate of .75% of the
average daily net assets not exceeding $1.5 billion and .725% of the
average daily net assets in excess of $1.5 billion. MLIM has entered
into a Sub-Advisory Agreement with Merrill Lynch Asset Management
U.K. Limited ("MLAM U.K."), an affiliate of MLIM, pursuant to which
MLAM UK provides investment advisory services to MLIM with respect
to the Fund. There is no increase in the aggregate fees paid by the
Fund for these services.
Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Company Act of 1940, the Fund
pays the Distributor ongoing account maintenance and distribution
fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
Account
Maintenance Distribution
Fee Fee
Class A .25% --
Class B .25% .75%
Class C .25% .75%
Class R .25% .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 A, Class B, Class C and Class R
shareholders. The ongoing distribution fee compensates the
Distributor and MLPF&S for providing shareholder and distribution-
related services to Class B, Class C and Class R shareholders.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Notes to Financial Statements (continued)
For the year ended August 31, 2003, FAMD earned underwriting
discounts and direct commissions and MLPF&S earned dealer
concessions on sales of the Fund's Class A and Class I Shares
as follows:
FAMD MLPF&S
Class A $ 701 $ 11,969
Class I $ 25 $ 515
For the year ended August 31, 2003, MLPF&S received contingent
deferred sales charges of $257,354 and $4,050 relating to
transactions in Class B and Class C Shares, respectively.
The Fund has received an exemptive order from the Securities and
Exchange Commission permitting it to lend portfolio securities to
MLPF&S or its affiliates. As of August 31, 2003, the Fund lent
securities with a value of $15,414,892 to MLPF&S. Pursuant to that
order, the Fund also has retained Merrill Lynch Investment Managers,
LLC ("MLIM, LLC"), an affiliate of MLIM, as the securities lending
agent for a fee based on a share of the returns on investment of
cash collateral. MLIM, LLC may, on behalf of the Fund, invest cash
collateral received by the Fund for such loans, among other things,
in a private investment company managed by MLIM, LLC or in
registered money market funds advised by MLIM or its affiliates. For
the year ended August 31, 2003, MLIM, LLC received $163,357 in
securities lending agent fees.
In addition, MLPF&S received $362,966 in commissions on the
execution of portfolio security transactions for the Fund for the
year ended August 31, 2003.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
For the year ended August 31, 2003, the Fund reimbursed MLIM $13,173
for certain accounting services.
Certain officers and/or directors of the Fund are officers and/or
directors of MLIM, PSI, MLAM U.K., FDS, FAMD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended August 31, 2003 were $677,394,634 and
$853,121,288, respectively.
Net realized losses for the year ended August 31, 2003 and net
unrealized gains (losses) as of August 31, 2003 were as follows:
Realized Unrealized
Losses Gains (Losses)
Long-term investments $ (199,833,614) $ 78,541,815
Foreign currency transactions (2,135,850) (138,992)
--------------- ---------------
Total $ (201,969,464) $ 78,402,823
=============== ===============
As of August 31, 2003, net unrealized appreciation for Federal
income tax purposes aggregated $78,265,513, of which $81,909,290
related to appreciated securities and $3,643,777 related to
depreciated securities. At August 31, 2003, the aggregate cost of
investments for Federal income tax purposes was $646,282,360.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $125,144,756 and $570,533,138 for the years ended August 31,
2003 and August 31, 2002, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended August 31, 2003++ Shares Amount
Shares sold 1,447,586 $ 9,404,253
Automatic conversion of shares 1,605,746 10,648,241
Shares issued resulting from
reorganization 745,332 5,241,248
------------- ----------------
Total issued 3,798,664 25,293,742
Shares redeemed (7,871,569) (51,893,742)
------------- ----------------
Net decrease (4,072,905) $ (26,558,031)
============= ================
++Effective April 14, 2003, Class D shares were redesignated Class A
Shares.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Notes to Financial Statements (continued)
Class A Shares for the Year Dollar
Ended August 31, 2002++ Shares Amount
Shares sold 2,035,700 $ 18,183,018
Automatic conversion of shares 4,139,062 36,215,355
------------- ----------------
Total issued 6,174,762 54,398,373
Shares redeemed (12,851,926) (110,875,087)
------------- ----------------
Net decrease (6,677,164) $ (56,476,714)
============= ================
++Effective April 14, 2003, Class D shares were redesignated Class A
Shares.
Class B Shares for the Year Dollar
Ended August 31, 2003 Shares Amount
Shares sold 1,101,287 $ 7,120,141
Shares issued resulting from
reorganization 271,517 1,862,806
------------- ----------------
Total issued 1,372,804 8,982,947
Automatic conversion of shares (1,639,784) (10,648,241)
Shares redeemed (21,773,344) (140,152,217)
------------- ----------------
Net decrease (22,040,324) $ (141,817,511)
============= ================
Class B Shares for the Year Dollar
Ended August 31, 2002 Shares Amount
Shares sold 2,161,507 $ 18,590,028
Automatic conversion of shares (4,194,473) (36,215,355)
Shares redeemed (43,110,945) (365,570,987)
------------- ----------------
Net decrease (45,143,911) $ (383,196,314)
============= ================
Class C Shares for the Year Dollar
Ended August 31, 2003 Shares Amount
Shares sold 307,912 $ 2,004,970
Shares issued resulting from
reorganization 48,496 332,713
------------- ----------------
Total issued 356,408 2,337,683
Shares redeemed (4,400,754) (28,280,421)
------------- ----------------
Net decrease (4,044,346) $ (25,942,738)
============= ================
Class C Shares for the Year Dollar
Ended August 31, 2002 Shares Amount
Shares sold 728,112 $ 6,328,168
Shares redeemed (7,905,731) (67,050,802)
------------- ----------------
Net decrease (7,177,619) $ (60,722,634)
============= ================
Class I Shares for the Year Dollar
Ended August 31, 2003++ Shares Amount
Shares sold 1,162,683 $ 7,798,444
Shares issued resulting from
reorganization 11,510,221 81,644,938
------------- ----------------
Total issued 12,672,904 89,443,382
Shares redeemed (3,035,018) (20,269,958)
------------- ----------------
Net increase 9,637,886 $ 69,173,424
============= ================
++Effective April 14, 2003, Class A shares were redesignated Class I
Shares.
Class I Shares for the Year Dollar
Ended August 31, 2002++ Shares Amount
Shares sold 1,497,562 $ 13,033,319
Shares redeemed (10,007,288) (83,170,795)
------------- ----------------
Net decrease (8,509,726) $ (70,137,476)
============= ================
++Effective April 14, 2003, Class A shares were redesignated
Class I Shares.
Class R Shares for the
Period January 3, 2003++ Dollar
to August 31, 2003 Shares Amount
Shares sold 15 $ 100
------------- ----------------
Net increase 15 $ 100
============= ================
++Commencement of operations.
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by MLIM and its
affiliates, is a party to a $500,000,000 credit agreement with Bank
One, N.A. and certain other lenders. The Fund may borrow under the
credit agreement to fund shareholder redemptions and for other
lawful purposes other than for leverage. The Fund may borrow up to
the maximum amount allowable under the Fund's current prospectus and
statement of additional information, subject to various other legal,
regulatory or contractual limits. The Fund pays a commitment fee of
..09% per annum based on the Fund's pro rata share of the unused
portion of the credit agreement. Amounts borrowed under the credit
agreement bear interest at a rate equal to, at each fund's election,
the Federal Funds rate plus .50% or a base rate as determined by
Bank One, N.A. On November 29, 2002, the credit agreement was
renewed for one year under the same terms, except that the
commitment was reduced from $1,000,000,000 to $500,000,000. The Fund
did not borrow under the credit agreement during the year ended
August 31, 2003.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Notes to Financial Statements (concluded)
6. Acquisition of Mercury Global Holdings Fund:
On July 21, 2003, the Fund acquired all of the net assets of Mercury
Global Holdings Fund pursuant to a plan of reorganization. The
acquisition was accomplished by a tax-free exchange of 16,780,966
shares of common stock of Mercury Global Holdings Fund for
12,575,566 shares of common stock of the Fund. Mercury Global
Holdings Fund's net assets on that date of $89,081,706, including
$5,844,594 of net unrealized appreciation and $84,917,226 of
accumulated net realized capital losses, were combined with those of
the Fund. The aggregate net assets immediately after the acquisition
amounted to $622,789,585.
7. Commitments:
At August 31, 2003, the Fund had entered into foreign exchange
contracts, under which it had agreed to purchase and sell various
foreign currencies with approximate values of $6,257,000 and
$10,777,000, respectively.
8. Distributions to Shareholders:
As of August 31, 2003, the components of accumulated losses on a tax
basis were as follows:
Undistributed ordinary income--net $ --
Undistributed long-term capital gains--net --
----------------
Total undistributed earnings--net --
Capital loss carryforward (622,850,819)*
Unrealized losses--net (36,304,342)**
----------------
Total accumulated losses--net $ (659,155,161)
================
*On August 31, 2003, the Fund had a net capital loss carryforward of
$622,850,819, of which $20,265,967 expires in 2008, $3,964,136
expires in 2009, $246,071,814 expires in 2010 and $352,548,902
expires in 2011. This amount will be available to offset like
amounts of any future taxable gains.
**The difference between book-basis and tax-basis net unrealized
losses is attributable primarily to the tax deferral of losses on
wash sales, the realization for tax purposes of unrealized gains
(losses) on certain foreign currency contracts, and the deferral of
post-October currency and capital losses for tax purposes.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Report of Independent Auditors
To the Shareholders and Board of Directors,
Merrill Lynch Global Growth Fund, Inc.
We have audited the accompanying statement of assets and liabilities
of Merrill Lynch Global Growth Fund, Inc., including the schedule of
investments, as of August 31, 2003, and the related statement of
operations for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended and
financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements and financial highlights. Our procedures
included confirmation of securities owned as of July 31, 2003, by
correspondence with the custodian and others. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Merrill Lynch Global Growth Fund, Inc. at
August 31, 2003, results of its operations for the year then ended,
the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the
indicated periods in conformity with accounting principles generally
accepted in the United States.
(Ernst & Young LLP)
MetroPark, New Jersey
October 22, 2003
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Officers and Directors (unaudited)
Number of
Portfolios in Other Public
Position(s) Length Fund Complex Directorships
Held Of Time Overseen by Held by
Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Director Director
Interested Directors
Terry K. Glenn* President 1999 to President and Chairman of Merrill Lynch 122 Funds None
P.O. Box 9011 and present Investment Managers, L.P. ("MLIM")/Fund 163 Portfolios
Princeton, Director and Asset Management, L.P. ("FAM")--Advised
NJ 08543-9011 1997 to Funds since 1999; Chairman (Americas Region)
Age: 62 present of MLIM from 2000 to 2002; Executive Vice
President of MLIM and FAM (which terms as
used herein include their corporate
predecessors) from 1983 to 2002; President
of FAM Distributors, Inc. ("FAMD") from
1986 to 2002 and Director thereof from 1991
to 2002; Executive Vice President and
Director of Princeton Services, Inc.
("Princeton Services") from 1993 to 2002;
President of Princeton Administrators, L.P.
from 1989 to 2002; Director of Financial
Data Services, Inc. since 1985.
*Mr. Glenn is a director, trustee or member of an advisory board of
certain other investment companies for which MLIM or FAM acts as
investment adviser. Mr. Glenn is an "interested person," as
described in the Investment Company Act, of the Fund based on his
former positions with MLIM, FAM, FAMD, Princeton Services and
Princeton Administrators, L.P. The Director's term is unlimited.
Directors serve until their resignation, removal or death, or until
December 31 of the year in which they turn 72. As Fund President,
Mr. Glenn serves at the pleasure of the Board of Directors.
Independent Directors*
Donald W. Burton Director 2002 to Manager of The Burton Partnership, Limited 23 Funds ITC DeltaCom,
P.O. Box 9095 present Partnership since 1979; Managing General 37 Portfolios Inc.; ITC Holding
Princeton, Partner of the South Atlantic Venture Company, Inc.;
NJ 08543-9095 Funds, Limited Partnerships and Chairman Knology, Inc.;
Age: 59 of South Atlantic Private Equity Fund IV, MainBancorp,
Limited Partnership since 1983; Member of N.A.; Pricare,
the Investment AdvisoryCouncil of the Inc.; Symbion,
Florida State Board of Administration since Inc.
2001.
M. Colyer Crum Director 1997 to James R. Williston Professor of Investment 24 Funds Cambridge
P.O. Box 9095 present Management Emeritus, Harvard Business 38 Portfolios Bancorp
Princeton, School since 1996; Chairman and Director,
NJ 08543-9095 Phaeton International, Ltd. from 1985 to
Age: 71 present; Director, Cambridge Bancorp since
1969.
Laurie Simon Hodrick Director 1999 to Professor of Finance and Economics, 23 Funds None
P.O. Box 9095 present Graduate School of Business, Columbia 37 Portfolios
Princeton, University since 1998; Associate
NJ 08543-9095 Professor of Finance and Economics,
Age: 40 Graduate School of Business, Columbia
University from 1996 to 1998.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Officers and Directors (unaudited)(concluded)
Number of
Portfolios in Other Public
Position(s) Length Fund Complex Directorships
Held Of Time Overseen by Held by
Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Director Director
Independent Directors* (concluded)
David H. Walsh Director 2003 to Consultant with Putnam Investments since 21 Funds None
P.O. Box 9095 present 1998 and employed in various capacities 35 Portfolios
Princeton, therewith from 1971 to 1992; Director,
NJ 08543-9095 the National Audubon Society since 1980;
Age: 61 Director, the American Museum of Fly
Fishing since 1998.
Fred G. Weiss Director 1998 to Managing Director of FGW Associates since 23 Funds Watson
P.O. Box 9095 present 1997; Vice President, Planning, Investment 37 Portfolios Pharmaceu-
Princeton, and Development of Warner Lambert Co. from ticals, Inc.
NJ 08543-9095 1979 to 1997; Director, BTG International,
Age: 62 PLC since 2001; Director, Watson
Pharmaceuticals, Inc. since 2000.
*The Director's term is unlimited. Directors serve until their
resignation, removal or death, or until December 31 of the year in
which they turn 72.
Position(s) Length
Held Of Time
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years
Fund Officers
Donald C. Burke Vice 1997 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof since
P.O. Box 9011 President present 1999; Senior Vice President and Treasurer of Princeton Services since 1999;
Princeton, and and Vice President of FAMD since 1999; Director of MLIM Taxation since 1990.
NJ 08543-9011 Treasurer 1999 to
Age: 43 present
Robert C. Doll, Jr. Senior 1999 to President of MLIM and member of the Executive Management Committee of ML&Co.,
P.O. Box 9011 Vice present Inc. since 2001; Global Chief Investment Officer and Senior Portfolio Manager
Princeton, President of MLIM since 1999; Chief Investment Officer of Equities at Oppenheimer Funds,
NJ 08543-9011 Inc. from 1990 to 1999 and Chief Investment Officer thereof from 1998 to 1999;
Age: 49 Executive Vice President of Oppenheimer Funds, Inc. from 1991 to 1999.
Lawrence R. Fuller Vice 1997 to Managing Director of MLIM since 2000; Director (Equities) of MLIM from
P.O. Box 9011 President present 1997 to 2000.
Princeton,
NJ 08543-9011
Age: 62
Phillip S. Gillespie Secretary 2003 to First Vice President of MLIM since 2001; Director (Legal Advisory) of MLIM
P.O. Box 9011 present from 2000 to 2001; Vice President of MLIM from 1999 to 2000 and Attorney
Princeton, thereof since 1998; Assistant General Counsel of Chancellor LGT Asset
NJ 08543-9011 Management, Inc. from 1997 to 1998.
Age: 39
*Officers of the Fund serve at the pleasure of the Board of
Directors.
Further information about the Fund's Officers and Directors is
available in the Fund's Statement of Additional Information, which
can be obtained without charge by calling 1-800-MER-FUND.
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
800-637-3863
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2003
Item 2 - Did registrant adopt a code of ethics, as of the end of the
period covered by this report, that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party? If not, why not? Briefly describe
any amendments or waivers that occurred during the period. State
here if code of ethics/amendments/waivers are on website and give
website address-. State here if fund will send code of ethics to
shareholders without charge upon request--
The registrant has adopted a code of ethics, as of the end of the
period covered by this report, that applies to the registrant's
principal executive officer, principal financial officer and
principal accounting officer, or persons performing similar
functions. A copy of the code of ethics is available without charge
upon request by calling toll-free 1-800-MER-FUND (1-800-637-3863).
Item 3 - Did the registrant's board of directors determine that the
registrant either: (i) has at least one audit committee financial
expert serving on its audit committee; or (ii) does not have an
audit committee financial expert serving on its audit committee? If
yes, disclose name of financial expert and whether he/she is
"independent," (fund may, but is not required, to disclose name/
independence of more than one financial expert) If no, explain
why not. -
The registrant's board of directors has determined that (i) the
registrant has the following audit committee financial experts
serving on its audit committee and (ii) each audit committee
financial expert is independent: (1) Donald W. Burton, (2) M. Colyer
Crum, (3) Laurie Simon Hodrick, (4) David H. Walsh and (5) Fred G.
Weiss.
The Board of Directors/Trustees of the Cluster A Merrill Lynch Funds
determined that Laurie Simon Hodrick and M. Colyer Crum qualify as
financial experts pursuant to Item 3(c)(4) of Form N-CSR.
Ms. Hodrick has a thorough understanding of generally accepted
accounting principals, financial statements, and internal controls
and procedures for financial reporting. Ms. Hodrick earned a Ph.D.
in economics and has taught courses in finance for over 15 years.
Her M.B.A.-level course centers around the evaluation and analysis
of firms' corporate financial statements. She has also taught in
financial analysts' training programs. Ms. Hodrick has also worked
with several prominent corporations in connection with the analysis
of financial forecasts and projections and analysis of the financial
statements of those companies, serving on the Financial Advisory
Council of one of these major corporations. She has also served as
the Treasurer and Finance Chair of a 501(c)(3) organization. Ms.
Hodrick has published a number of articles in leading economic and
financial journals and is the associate editor of two leading
finance journals.
M. Colyer Crum also possesses a thorough understanding of generally
accepted accounting principals, financial statements, and internal
controls and procedures for financial reporting through a
combination of education and experience. Professor Crum was a
professor of investment management at the Harvard Business School
for 25 years. The courses taught by Professor Crum place a heavy
emphasis on the analysis of underlying company financial statements
with respect to stock selection and the analysis of credit risk in
making loans. Professor Crum has also served on a number of boards
of directors and has served on the audit committees, and in some
cases chaired the audit committee, for several major corporations
and financial institutions. For two such organizations, Professor
Crum has performed extensive investment analysis of financial
statements in connection with investment management decisions. From
these experiences, he has gained significant experience with the
establishment of reserves and accounting policies, differences
between U.S. GAAP and Canadian GAAP and executive compensation
issues.
Item 4 - Disclose annually only (not answered until December 15,
2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last
two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant
in connection with statutory and regulatory filings or engagements
for those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of
the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance
of the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item. Registrants shall
describe the nature of the services comprising the fees disclosed
under this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last
two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the
fees disclosed under this category. N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the
last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs
(a) through (c) of this Item. Registrants shall describe the nature
of the services comprising the fees disclosed under this category.
N/A.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation
S-X. N/A.
(e)(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the
audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-
3 under the Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act regarding an exemption from the listing
standards for audit committees. N/A
(Listed issuers must be in compliance with the new listing rules by
the earlier of their first annual shareholders meeting after January
2004, or October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in
their portfolio, describe the policies and procedures that it uses
to determine how to vote proxies relating to those portfolio
securities. N/A
Item 8--Reserved
Item 9(a) - The registrant's certifying officers have reasonably
designed such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
Item 9(b)--There were no significant changes in the registrant's
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of
ethics or amendments/waivers is on website or offered to
shareholders upon request without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the
Sarbanes-Oxley Act. Attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Merrill Lynch Global Growth Fund, Inc.
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
Merrill Lynch Global Growth Fund, Inc.
Date: October 24, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: _/s/ Terry K. Glenn________
Terry K. Glenn,
President of
Merrill Lynch Global Growth Fund, Inc.
Date: October 24, 2003
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
Merrill Lynch Global Growth Fund, Inc.
Date: October 24, 2003
Attached hereto as a furnished exhibit are the certifications
pursuant to Section 906 of the Sarbanes-Oxley Act.