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: 08/31/04
Date of reporting period: 09/01/03 - 08/31/04
Item 1 - Report to Stockholders
(BULL LOGO)
Merrill Lynch Investment Managers
www.mlim.ml.com
Merrill Lynch
Global Growth
Fund, Inc.
Annual Report
August 31, 2004
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) at www.mutualfunds.ml.com and
(3) on the Securities and Exchange Commission's Web site at
http://www.sec.gov. Information about how the Fund voted proxies
relating to securities held in the Fund's portfolio during the
most recent 12-month period ended June 30 is available (1) at
www.mutualfunds.ml.com and (2) on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
Merrill Lynch Global Growth Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
(GO PAPERLESS LOGO)
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Merrill Lynch Global Growth Fund, Inc.
Portfolio Information As of August 31, 2004
Percent of
Total
Geographic Allocation by Country Investments
United States 43.8%
Australia 7.1
South Korea 7.0
Germany 4.6
Hong Kong 4.4
United Kingdom 4.0
Canada 3.5
Spain 2.9
France 2.4
Norway 1.9
Japan 1.8
Switzerland 1.7
Denmark 1.5
China 1.4
Sweden 1.0
India 0.8
Other* 10.2
* Includes portfolio holdings in short-term investments.
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
3M Co. United States 4.1%
Porsche AG (Preferred) Germany 3.0
General Electric Company United States 2.7
Microsoft Corporation United States 2.6
Samsung Electronics South Korea 2.5
eBay Inc. United States 2.1
Gilead Sciences, Inc. United States 2.0
Banco Popular Espanol SA Spain 1.9
Hyundai Motor Company Ltd. South Korea 1.8
A P Moller--Maersk A/S Denmark 1.7
Percent of
Five Largest Industries* Net Assets
Oil & Gas 12.6%
Metals & Mining 10.5
Industrial Conglomerates 8.8
Software 5.5
Health Care Equipment & Supplies 5.3
* 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. These industry
classifications are unaudited.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
A Letter From the President
Dear Shareholder
Equity markets posted positive results for the 12-month reporting
period, despite intermittent weakness in the latter months of the
year. For the 12 months ended August 31, 2004, the U.S. stock
market, as measured by the Standard & Poor's 500 (S&P 500) Index,
returned +11.46%. The Morgan Stanley Capital International (MSCI)
World Index, which measures the performance of equity markets in
23 developed nations around the world, returned +15.61% for the same
12-month period. Returns over the past six months were not as
favorable, with the S&P 500 Index returning -2.74% and the MSCI
World Index returning -2.64% as of August 31, 2004.
For the most part, equity markets have been supported by improving
economies in important areas globally. In the United States, the
Federal Reserve Board (the Fed) recently increased the target
interest rate from 1% to 1.75% in three separate moves. This
represents a shift from a long-run accommodative monetary stance and
an indication from the Fed that the U.S. economy is strengthening.
Additional interest rate hikes are likely later in 2004, and gross
domestic product (GDP) is expected to grow at an annualized rate of
4%. Since the United States represents 32% of global GDP, the
acceleration of its economy has provided encouragement to other
areas of the world.
China has recorded a remarkable rate of economic expansion, which
has helped fuel growth in the economies of its trading partners.
Given efforts to preempt inflation, China's growth is expected to
ease somewhat, but still expand at a rate of approximately 7% in
2004 (compared to 9.8% in 2003). Japan, in the meantime, could
register growth of 4% this year after 13 years of sluggish economic
activity. Other Asian economies, such as those of South Korea,
Malaysia, Singapore, Taiwan and Thailand, appear primed for growth
in the area of 5% - 6%. While economic expansion has not been as
swift in Europe, the European Union welcomed 10 new member nations
in May, and the enhanced integration could provide long-term
economic benefits.
It appears that the greatest risks going forward are likely to
be found in the global economy, global interest rates, oil and
commodity prices, and geopolitical factors. As always, our
investment professionals are closely monitoring the markets,
the economy and the overall environment in an effort to make
well-informed decisions for the portfolios they manage. Our goal
is to provide shareholders with competitive returns, while always
keeping one eye on managing the unavoidable risk inherent in
investing.
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, 2004
A Discussion With Your Fund's Portfolio Manager
The Fund provided positive results for the year, outperforming the
Lipper Global Large Cap Growth Funds category average, but slightly
lagging the return of the benchmark MSCI World Index.
How did the Fund perform during the fiscal year in light of the
existing market conditions?
For the 12-month period ended August 31, 2004, Merrill Lynch Global
Growth Fund, Inc.'s Class A, Class B, Class C, Class I and Class R
Shares had total returns of +12.78%, +11.89%, +11.89%, +12.93% and
+13.13%, 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.) For the same period, the unmanaged Morgan Stanley
Capital International (MSCI) World Index had a total return of
+15.61%, and the Lipper Global Large Cap Growth Funds category
posted an average return of +10.19%. (Funds in this Lipper category
invest primarily in equity securities both inside and outside the
United States with relatively large market capitalizations and a
focus on above-average growth.)
The Fund's relative performance during the fiscal year was
suppressed by its focus on the highest-quality and largest-
capitalization companies in the MSCI World Index. These companies,
as a group, continued to provide a lower average investment return
than the smaller-capitalization stocks in the benchmark.
In terms of industry sectors, information technology (IT) delivered
the most significant performance penalty during the fiscal period.
The IT sector declined the most in the sharp global equity market
downtrend that occurred in the final months of the period - from
July to mid-August 2004. IT stocks that had a meaningful negative
effect on Fund performance were Agilent Technologies Inc., Hewlett-
Packard Company, Texas Instruments Incorporated, EMC Corp., Intel
Corporation, SanDisk Corporation, Motorola, Inc. and Lucent
Technologies Inc., all U.S.-based companies.
In the second half of the fiscal year, Fund performance was burdened
by the notable decline of the stock markets in South Korea,
Australia, Hong Kong, Japan and India. We had invested nearly 25% of
the Fund's net assets in companies in these countries, based on our
belief that the emerging growth of the Pacific Region would provide
opportunities for above-average growth in business and profits. Many
investors liquidated their equity holdings in these markets after
the Chinese government announced plans in March 2004 to restrict
real growth in certain industries to prevent a too-rapid expansion
of economic growth and rising rates of inflation. In August 2004, as
anecdotal evidence grew that the Chinese government was relaxing
these restraints, the Pacific Region stock markets began to recover.
The Fund's lack of investment exposure to banking and insurance
companies in Japan represented an important opportunity cost. Our
avoidance of these investments was prompted by our caution about
participating in an industry sector where valuation increases are
based on takeover speculation.
Contributing positively to Fund performance was our focus on stocks
in the consumer discretionary and energy sectors. In energy,
companies that benefited the Fund's absolute and relative returns
were Frontline Ltd. (Norway), Woodside Petroleum Limited
(Australia), S-Oil Corp. (South Korea), BG Group PLC (U.K.), Technip
SA (France), Suncor Energy, Inc. (Canada), Transocean Inc. (U.S.),
Schlumberger Limited (U.S.) and Weatherford International Ltd.
(U.S.). Companies in the consumer discretionary sector that made a
significant contribution were eBay Inc. (U.S.), Mandalay Resort
Group (U.S.), Esprit Holdings Limited (Hong Kong), Porsche AG
(Germany), PETsMART, Inc. (U.S.), Chico's FAS Inc. (U.S.) and
Station Casinos Inc. (U.S.). We liquidated several of these
positions based on the stocks' relatively high valuations.
What changes were made to the portfolio during the fiscal year?
We did not make any major changes in the sector weightings or the
investment strategy of the Fund during the first six months of the
fiscal year. We continued to overweight the consumer discretionary,
information technology, materials and energy sectors, which we felt
could benefit from the burgeoning global economic recovery.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
In the second half of the year, we reduced the Fund's exposure to
stocks in the consumer discretionary sector by almost 25%. This was
accomplished through the liquidation of our investments in Mandalay
Resort Group, PETsMART, Chico's FAS, Ross Stores Inc. (all U.S.),
Hennes & Mauritz AB (Sweden), Medion AG (Germany) and Peugeot SA
(France). We also reduced our positions in Porsche and Lowe's
Companies, Inc. (U.S.).
The most meaningful increase in the Fund's investment exposure was
in the energy sector. Within energy, we introduced investments in
Occidental Petroleum Corporation (U.S.), Statoil ASA (Norway), Sasol
Limited (U.S.), Pioneer Natural Resources Company (U.S.), XTO
Energy, Inc. (U.S.), Teekay Shipping Corporation (U.S.), Apache
Corporation (U.S.), Devon Energy Corporation (U.S.), Smith
International, Inc. (U.S.), Grant Prideco, Inc. (U.S.), Cooper
Cameron Corporation (U.S.) and National-Oilwell Inc. (U.S.).
How would you characterize the Fund's position at the close of the
period?
We believe the Fund is positioned to benefit from a recovery in
economic growth rates globally, as the United States passes through
what Federal Reserve Board Chairman Alan Greenspan recently referred
to as a "soft patch" in real growth. In our view, China and the
United States will continue to be the two fastest-growing economies
in the world for the remainder of 2004 and into early 2005.
The Fund's investments are focused on companies in the industrials,
energy, information technology and materials sectors. Should the
coming months bring a recovery in economic growth in the United
States and China, we believe these industries could benefit in the
form of higher profits and profitability. Finally, we are encouraged
by the seemingly positive growth outlooks recently offered by the
managements of several major global corporations.
Lawrence R. Fuller
Vice President and Portfolio Manager
September 16, 2004
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Performance Data
About Fund Performance
Investors are able to purchase shares of the Fund through multiple
pricing alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 5.25% and an account maintenance fee of 0.25% per year (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% per year and an account maintenance fee of 0.25% per
year. 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% per year
and an account maintenance fee of 0.25% per year. 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% per year and an account maintenance fee of
0.25% per year. Class R Shares are available only to certain
retirement plans.
None of the past results shown should be considered a representation
of future performance. Current performance may be lower or higher
than the performance data quoted. Refer to www.mlim.ml.com to obtain
more current performance information. Performance results do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The Fund is subject
to a 2% redemption fee for sales or exchanges of shares within
30 days of purchase. Performance data does not reflect this
potential fee. Figures shown in each of the following tables assume
reinvestment of all dividends and capital gain distributions, if
any, 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, 2004
Performance Data (continued)
Recent Performance Results
6-Month 12-Month Since Inception
As of August 31, 2004 Total Return Total Return Total Return
ML Global Growth Fund, Inc.--Class A Shares* -5.15% +12.78% +5.49%
ML Global Growth Fund, Inc.--Class B Shares* -5.54 +11.89 +0.02
ML Global Growth Fund, Inc.--Class C Shares* -5.54 +11.89 -0.03
ML Global Growth Fund, Inc.--Class I Shares* -5.10 +12.93 +7.22
ML Global Growth Fund, Inc.--Class R Shares* -5.22 +13.13 +28.62
MSCI World Index** -2.64 +15.61 +23.90/+30.29
* 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.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Performance Data (continued)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
Class A & Class B Shares
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
August 2004 $ 9,996.00
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 $ 8,940.00
August 2004 $10,002.00
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
August 2004 $12,390.00
* 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 results.
Average Annual Total Return
Return Without Return With
Sales Charge Sales Charge**
Class A Shares*
One Year Ended 8/31/04 +12.78% +6.86%
Five Years Ended 8/31/04 -5.21 -6.22
Inception (10/31/97)
through 8/31/04 +0.79 -0.01
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
Return Return
Without CDSC With CDSC**
Class B Shares*
One Year Ended 8/31/04 +11.89% +7.89%
Five Years Ended 8/31/04 -5.95 -6.26
Inception (10/31/97)
through 8/31/04 0.00 0.00
* 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, 2004
Performance Data (continued)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
Class C & Class I Shares
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
August 2004 $ 9,997.00
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
August 2004 $10,159.00
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
August 2004 $12,390.00
* 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 results.
Average Annual Total Return
Return Return
Without CDSC With CDSC**
Class C Shares*
One Year Ended 8/31/04 +11.89% +10.89%
Five Years Ended 8/31/04 -5.95 -5.95
Inception (10/31/97)
through 8/31/04 0.00 0.00
* 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 8/31/04 +12.93% +7.00%
Five Years Ended 8/31/04 -4.99 -6.01
Inception (10/31/97)
through 8/31/04 +1.02 +0.23
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Performance Data (concluded)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
Class R Shares
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
August 2004 $12,862.00
MSCI World Index++++
Date Value
1/03/2003** $10,000.00
August 2003 $11,270.00
August 2004 $13,029.00
* 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 results.
Aggregate Total Return
Class R Shares Return
One Year Ended 8/31/04 +13.13%
Inception (1/03/03)
through 8/31/04 +16.40
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Disclosure of Expenses
Shareholders of this Fund may incur the following charges:
(a) expenses related to transactions, including sales charges,
redemption fees and exchange fees; and (b) operating expenses
including advisory fees, distribution fees including 12(b)-1 fees,
and other Fund expenses. The following example (which is based on a
hypothetical investment of $1,000 invested on March 1, 2004 and held
through August 31, 2004) is intended to assist shareholders both in
calculating expenses based on an investment in the Fund and in
comparing these expenses with similar costs of investing in other
mutual funds.
The first table below provides information about actual account
values and actual expenses. In order to estimate the expenses a
shareholder paid during the period covered by this report,
shareholders can divide their account value by $1,000 and then
multiply the result by the number in the first line under the
heading entitled "Expenses Paid During the Period".
The second table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before
expenses. In order to assist shareholders in comparing the ongoing
expenses of investing in this Fund and other funds, compare the 5%
hypothetical example with the 5% hypothetical examples that appear
in other funds' shareholder reports.
The expenses shown in the table are intended to highlight
shareholders ongoing costs only and do not reflect any transactional
expenses, such as sales charges, redemption fees, or exchange fees.
Therefore, the second table is useful in comparing ongoing expenses
only, and will not help shareholders determine the relative total
expenses of owning different funds. If these transactional expenses
were included, shareholder expenses would have been higher.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value March 1, 2004
March 1, 2004 August 31, 2004 to August 31, 2004
Actual
Class A $1,000 $ 948.50 $ 6.84
Class B $1,000 $ 944.60 $10.71
Class C $1,000 $ 944.60 $10.76
Class I $1,000 $ 949.00 $ 5.62
Class R $1,000 $ 947.80 $ 7.68
Hypothetical (5% annual return before expenses)**
Class A $1,000 $1,018.25 $ 7.09
Class B $1,000 $1,014.25 $11.10
Class C $1,000 $1,014.20 $11.15
Class I $1,000 $1,019.51 $ 5.82
Class R $1,000 $1,017.39 $ 7.95
* For each class of the Fund, expenses are equal to the annualized expense ratio for the class
(1.39% for Class A, 2.18% for Class B, 2.19% for Class C, 1.14% for Class I and 1.56% for Class R),
multiplied by the average account value over the period, multiplied by 186/368 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the
most recent fiscal half-year divided by 368.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Schedule of Investments (in U.S. dollars)
EUROPE Industry* Shares Held Common Stock Value
Denmark--1.7% Marine--1.7% 1,275 A P Moller--Maersk A/S $ 8,624,366
Total Common Stock in Denmark 8,624,366
France--2.7% Energy Equipment 24,858 Compagnie Francaise d'Etudes et de Construction
& Service--0.8% (Technip SA) 3,721,863
Media--0.9% 168,700 Societe Television Francaise 1 4,733,938
Pharmaceuticals--1.0% 75,000 Sanofi-Aventis 5,323,015
Total Common Stock in France 13,778,816
Germany--2.1% Industrial 97,900 Siemens AG (b) 6,690,126
Conglomerates--1.3%
Software--0.3% 9,100 SAP AG (Systeme, Anwendungen, Produkte in der
Datenverarbeitung) 1,324,343
Textiles, Apparel & 12,000 Puma AG Rudolf Dassler Sport 2,927,221
Luxury Goods--0.5%
Total Common Stock in Germany 10,941,690
Norway--2.1% Oil & Gas--2.1% 153,600 Frontline Limited 5,736,487
400,000 Statoil ASA 5,095,394
---------------
10,831,881
Total Common Stock in Norway 10,831,881
Spain--3.2% Commercial 180,500 Banco Popular Espanol SA 9,768,175
Banks--1.9%
Construction & 416,312 Actividades de Construccion y Servicios, SA (ACS) 7,083,216
Engineering--1.4%
Total Common Stock in Spain 16,851,391
Sweden--1.1% Communications 959,700 Telefonaktiebolaget LM Ericsson AB 'B' 2,580,388
Equipment--0.5%
Machinery--0.6% 89,000 SKF AB 'B' 3,275,543
Total Common Stock in Sweden 5,855,931
Switzerland--1.9% Health Care Equipment 86,700 Alcon, Inc. 6,488,628
& Supplies--1.9% 32,600 Synthes, Inc. 3,483,538
---------------
9,972,166
Total Common Stock in Switzerland 9,972,166
United Kingdom-- Household 238,300 Reckitt Benckiser PLC 6,258,869
4.4% Products--1.2%
Media--0.8% 457,300 British Sky Broadcasting Group PLC ("BSkyB") 3,932,313
Metals & Mining--1.1% 237,000 Rio Tinto PLC (Registered Shares) 5,879,380
Oil & Gas--1.3% 1,116,000 BG Group PLC 6,876,124
Total Common Stock in the United Kingdom 22,946,686
Total Common Stock in Europe--19.2% 99,802,927
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Schedule of Investments (continued) (in U.S. dollars)
NORTH
AMERICA Industry* Shares Held Common Stock Value
Canada--3.9% Metals & Mining--1.0% 27,000 Cameco Corporation $ 1,757,172
186,200 Teck Cominco Limited 'B' 3,638,927
---------------
5,396,099
Oil & Gas--2.9% 291,700 Suncor Energy, Inc. (b) 8,078,425
328,400 TransCanada Corporation (b) 6,851,636
---------------
14,930,061
Total Common Stock in Canada 20,326,160
United States-- Biotechnology--2.0% 147,400 ++Gilead Sciences, Inc. (b) 10,189,762
48.7%
Chemicals--1.3% 60,600 Air Products and Chemicals, Inc. 3,174,228
87,500 Praxair, Inc. 3,550,750
---------------
6,724,978
Commercial Services 99,800 ++Monster Worldwide Inc. 2,018,954
& Supplies--0.4%
Communications 106,900 ++Avaya Inc. 1,295,628
Equipment--3.5% 320,300 ++Cisco Systems, Inc. 6,008,828
1,853,900 ++Lucent Technologies Inc. (b) 5,802,707
300,000 Motorola, Inc. 4,845,000
---------------
17,952,163
Computers & 426,800 Hewlett-Packard Company 7,635,452
Peripherals--2.3% 195,000 ++SanDisk Corporation (b) 4,553,250
---------------
12,188,702
Electrical 143,500 Rockwell Automation, Inc. 5,596,500
Equipment--1.1%
Electronic Equipment 180,300 ++Agilent Technologies, Inc. 3,696,150
& Instruments--0.9% 36,400 Tektronix, Inc. 1,039,948
---------------
4,736,098
Energy Equipment 25,000 ++Cooper Cameron Corporation 1,273,250
& Service--3.5% 67,800 Diamond Offshore Drilling, Inc. 1,723,476
75,000 ++Grant Prideco, Inc. 1,370,250
42,000 ++National-Oilwell, Inc. 1,255,800
112,200 Schlumberger Limited 6,933,960
24,500 ++Smith International, Inc. 1,396,010
139,600 ++Transocean Inc. 4,285,720
---------------
18,238,466
Food Products--0.4% 60,000 McCormick & Company Incorporated 2,013,000
Health Care Equipment 168,500 ++Boston Scientific Corporation 6,020,505
& Supplies--3.4% 139,700 Medtronic, Inc. 6,950,075
143,600 ++Varian Medical Systems, Inc. 4,760,340
---------------
17,730,920
Hotels, Restaurants 74,500 Station Casinos, Inc. 3,427,000
& Leisure--1.4% 93,100 ++Wynn Resorts, Limited (b) 3,593,660
---------------
7,020,660
Industrial 258,900 3M Co. 21,323,004
Conglomerates--6.8% 426,700 General Electric Company 13,991,493
---------------
35,314,497
Internet & Catalog 127,300 ++eBay Inc. 11,016,542
Retail--2.1%
Internet Software 77,300 ++Yahoo! Inc. 2,203,823
& Services--0.4%
Machinery--2.2% 61,500 Cummins Inc. 4,138,335
124,100 PACCAR Inc. (b) 7,469,579
---------------
11,607,914
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Schedule of Investments (continued) (in U.S. dollars)
NORTH AMERICA
(concluded) Industry* Shares Held Common Stock Value
United States Metals & Mining--1.8% 58,800 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 2,212,644
(concluded) 85,300 Phelps Dodge Corporation (b) 6,957,068
---------------
9,169,712
Oil & Gas--5.2% 32,600 Apache Corporation 1,456,894
326,300 Chesapeake Energy Corporation (b) 4,610,619
21,800 Devon Energy Corporation 1,412,858
69,900 Frontline Limited 2,629,638
128,600 Occidental Petroleum Corporation 6,642,190
70,000 Pioneer Natural Resources Company 2,341,500
275,000 Sasol Limited (Sponsored ADR) (a) 4,741,000
40,100 Teekay Shipping Corporation 1,405,505
65,200 XTO Energy, Inc. 1,828,208
---------------
27,068,412
Pharmaceuticals--0.9% 102,400 ++Forest Laboratories, Inc. 4,695,040
Semiconductors 255,800 Intel Corporation 5,445,982
& Semiconductor 191,400 Texas Instruments Incorporated 3,739,956
Equipment--1.8% ---------------
9,185,938
Software--5.2% 117,600 Adobe Systems Incorporated 5,394,312
121,300 ++Electronic Arts Inc. 6,038,314
499,200 Microsoft Corporation 13,628,160
232,700 ++Oracle Corporation 2,320,019
---------------
27,380,805
Specialty Retail--2.1% 175,100 Best Buy Co., Inc. (b) 8,145,652
50,700 Lowe's Companies, Inc. 2,519,790
---------------
10,665,442
Total Common Stock in the United States 252,718,328
Total Common Stock in North America--52.6% 273,044,488
PACIFIC BASIN
Australia--7.9% Airlines--1.3% 2,833,600 Qantas Airways Limited 6,823,227
Commercial 239,400 Australia and New Zealand Banking Group Ltd. 3,102,109
Banks--0.7%
Industrial 182,300 Wesfarmers Limited 3,869,657
Conglomerates--0.7%
Media--0.7% 488,871 The News Corporation Limited (b) 3,807,735
Metals & 1,303,400 Alumina Limited 4,997,749
Mining--3.3% 797,400 BHP Billiton Limited 7,393,291
1,396,600 WMC Resources Limited 4,852,148
---------------
17,243,188
Multiline 1,396,600 Harvey Norman Holdings Limited (b) 2,909,316
Retail--0.6%
Road & Rail--0.6% 419,000 Toll Holdings Limited 3,239,851
Total Common Stock in Australia 40,995,083
China--1.5% Internet Software 43,000 ++SINA.com (ADR) (a)(b) 895,690
& Services--0.2%
Metals & 8,008,000 Aluminum Corporation of China Limited 3,927,025
Mining--1.3% 2,872,000 Yanzhou Coal Mining Co. Ltd. 'H' 3,111,353
---------------
7,038,378
Total Common Stock in China 7,934,068
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Schedule of Investments (continued) (in U.S. dollars)
PACIFIC BASIN
(concluded) Industry* Shares Held Common Stock Value
Hong Kong--4.9% Airlines--1.5% 4,307,000 Cathay Pacific Airways $ 7,564,907
Construction 1,675,000 Cheung Kong Infrastructure Holdings Limited 4,144,571
Materials--0.8%
Household 1,919,500 Techtronic Industries Company Limited 3,026,923
Durables--0.6%
Marine--0.4% 3,168,000 China Shipping Development Company Limited 'H' 2,193,245
Specialty 728,000 Esprit Holdings Limited 3,509,356
Retail--0.7%
Transportation 1,584,000 China Merchants Holdings International Company
Infrastructure--0.9% Limited 2,406,477
1,584,000 Cosco Pacific Limited 2,376,015
---------------
4,782,492
Total Common Stock in Hong Kong 25,221,494
India--0.9% Automobiles--0.4% 167,900 Hero Honda Motors Ltd. 1,603,102
Construction & 67,200 Larsen & Toubro Ltd. 1,206,831
Engineering--0.2%
Construction 21,923 ++Ultratech Cemco Ltd. 125,805
Materials--0.0%
Metals & Mining--0.3% 285,000 ++Tata Iron and Steel Company Ltd. 1,549,067
Total Common Stock in India 4,484,805
Japan--2.0% Metals & Mining--0.9% 163,500 JFE Holdings, Inc. 4,439,656
Office 125,000 Canon, Inc. 5,945,601
Electronics--1.1%
Total Common Stock in Japan 10,385,257
South Korea--7.8% Automobiles--1.8% 218,800 Hyundai Motor Company Ltd. 9,478,769
Chemicals--0.3% 42,300 LG Chem, Ltd. 1,608,491
Diversified 75,600 KT Corporation 2,392,343
Telecommunication
Services--0.5%
Machinery--0.3% 130,100 Daewoo Shipbuilding & Marine Engineering Co., Ltd. 1,462,686
Metals & Mining--0.8% 29,500 POSCO 4,238,616
Multiline Retail--0.5% 10,000 Shinsegae Co., Ltd. 2,621,869
Oil & Gas--1.1% 139,600 S-Oil Corporation 5,962,860
Semiconductors 32,900 Samsung Electronics 12,881,799
& Semiconductor
Equipment--2.5%
Total Common Stock in South Korea 40,647,433
Total Common Stock in the Pacific Basin--25.0% 129,668,140
Total Common Stock
(Cost--$465,811,101)--96.8% 502,515,555
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Schedule of Investments (concluded) (in U.S. dollars)
EUROPE Industry* Shares Held Preferred Stock Value
Germany--3.0% Automobiles--3.0% 25,837 Porsche AG (Preferred) (b) $ 15,692,005
Total Preferred Stock in Europe--3.0% 15,692,005
Total Preferred Stock
(Cost--$10,514,380)--3.0% 15,692,005
Beneficial Interest Short-Term Securities
$ 1,013,636 Merrill Lynch Liquidity Series, LLC Cash Sweep
Series I (c) 1,013,636
58,131,800 Merrill Lynch Liquidity Series, LLC Money Market
Series (c)(d) 58,131,800
Total Short-Term Securities
(Cost--$59,145,436)--11.4% 59,145,436
Total Investments (Cost--$535,470,917**)--111.2% 577,352,996
Liabilities in Excess of Other Assets--(11.2%) (58,421,884)
---------------
Net Assets--100.0% $ 518,931,112
===============
* 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. These industry
classifications are unaudited.
** The cost and unrealized appreciation/depreciation of
investments as of August 31, 2004 as computed for federal
income tax purposes were as follows:
Aggregate cost $ 535,551,406
===============
Gross unrealized appreciation $ 72,211,279
Gross unrealized depreciation (30,409,689)
---------------
Net unrealized appreciation $ 41,801,590
===============
++ Non-income producing security.
(a) American Depositary Receipts (ADR).
(b) Security, or a portion of security, is on loan.
(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) were
as follows:
Interest/
Net Dividend
Affiliate Activity Income
Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I $ 1,013,636 $ 98,172
Merrill Lynch Liquidity Series, LLC
Money Market Series $ 12,528,830 $139,512
Merrill Lynch Premier Institutional
Fund (30,401,980) $ 36,467
(d) Security was purchased with the cash proceeds from securities loans.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Statement of Assets and Liabilities
As of August 31, 2004
Assets
Investments in unaffiliated securities, at value (including securities
loaned of $55,663,024) (identified cost--$476,325,481) $ 518,207,560
Investments in affiliated securities, at value (identified cost--$59,145,436) 59,145,436
Foreign cash (cost--$327,731) 329,004
Receivables:
Securities sold $ 5,165,446
Dividends 1,531,411
Capital shares sold 29,258
Securities lending--net 12,725
Interest from affiliates 10,237 6,749,077
---------------
Prepaid expenses 137,696
---------------
Total assets 584,568,773
---------------
Liabilities
Collateral on securities loaned, at value 58,131,800
Payables:
Securities purchased 5,376,586
Capital shares redeemed 1,463,810
Distributor 296,407
Other affiliates 243,215
Investment adviser 42,776 7,422,794
---------------
Accrued expenses and other liabilities 83,067
---------------
Total liabilities 65,637,661
---------------
Net Assets
Net assets $ 518,931,112
===============
Net Assets Consist of
Class A Shares of Common Stock, $.10 par value, 100,000,000 shares authorized $ 1,163,618
Class B Shares of Common Stock, $.10 par value, 300,000,000 shares authorized 3,086,268
Class C Shares of Common Stock, $.10 par value, 100,000,000 shares authorized 742,381
Class I Shares of Common Stock, $.10 par value, 100,000,000 shares authorized 1,246,991
Class R Shares of Common Stock, $.10 par value, 300,000,000 shares authorized 1,982
Paid-in capital in excess of par 1,092,482,529
Undistributed investment income--net $ 349,326
Accumulated realized capital losses--net (622,055,065)
Unrealized appreciation--net 41,913,082
---------------
Total accumulated losses--net (579,792,657)
---------------
Net Assets $ 518,931,112
===============
Net Asset Value
Class A--Based on net assets of $98,518,955 and 11,636,181 shares outstanding $ 8.47
===============
Class B--Based on net assets of $252,690,827 and 30,862,679 shares outstanding $ 8.19
===============
Class C--Based on net assets of $60,770,841 and 7,423,813 shares outstanding $ 8.19
===============
Class I--Based on net assets of $106,784,842 and 12,469,906 shares outstanding $ 8.56
===============
Class R--Based on net assets of $165,647 and 19,820 shares outstanding $ 8.36
===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Statement of Operations
For the Year Ended August 31, 2004
Investment Income
Dividends (net of $785,584 foreign withholding tax) $ 13,452,782
Interest from affiliates 98,172
Securities lending--net 175,979
---------------
Total income 13,726,933
---------------
Expenses
Investment advisory fees $ 4,645,567
Account maintenance and distribution fees--Class B 3,099,318
Transfer agent fees--Class B 830,713
Account maintenance and distribution fees--Class C 707,483
Transfer agent fees--Class I 292,612
Account maintenance fees--Class A 278,388
Accounting services 260,569
Transfer agent fees--Class A 255,878
Transfer agent fees--Class C 200,834
Custodian fees 187,053
Professional fees 83,031
Printing and shareholder reports 76,532
Directors' fees and expenses 72,071
Registration fees 64,566
Pricing fees 10,694
Account maintenance and distribution fees--Class R 343
Transfer agent fees--Class R 175
Other 166,442
---------------
Total expenses 11,232,269
---------------
Investment income--net 2,494,664
---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 114,280,152
Foreign currency transactions--net (1,028,936) 113,251,216
---------------
Change in unrealized appreciation/depreciation on:
Investments--net (36,659,736)
Foreign currency transactions--net 169,995 (36,489,741)
--------------- ---------------
Total realized and unrealized gain--net 76,761,475
---------------
Net Increase in Net Assets Resulting from Operations $ 79,256,139
===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Statements of Changes in Net Assets
For the Year Ended
August 31,
Increase (Decrease) in Net Assets: 2004 2003
Operations
Investment income (loss)--net $ 2,494,664 $ (1,039,227)
Realized gain (loss)--net 113,251,216 (201,969,464)
Change in unrealized appreciation/depreciation--net (36,489,741) 233,728,261
--------------- ---------------
Net increase in net assets resulting from operations 79,256,139 30,719,570
--------------- ---------------
Capital Share Transactions
Net decrease in net assets derived from capital share transactions (203,244,671) (125,144,756)
--------------- ---------------
Redemption Fees
Redemption fees (293) --
--------------- ---------------
Net Assets
Total decrease in net assets (123,988,825) (94,425,186)
Beginning of year 642,919,937 737,345,123
--------------- ---------------
End of year* $ 518,931,112 $ 642,919,937
=============== ===============
* Undistributed investment income (loss)--net $ 349,326 $ (1,222,767)
=============== ===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Financial Highlights
The following per share data and ratios have been derived
from information provided in the financial statements. Class A
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000
Per Share Operating Performance
Net asset value, beginning of year $ 7.51 $ 6.95 $ 9.44 $ 17.95 $ 13.51
---------- ---------- ---------- ---------- ----------
Investment income (loss)--net** .07 .03 (.02) --++ (.06)
Realized and unrealized gain (loss)--net .89 .53 (2.47) (6.64) 5.50
---------- ---------- ---------- ---------- ----------
Total from investment operations .96 .56 (2.49) (6.64) 5.44
---------- ---------- ---------- ---------- ----------
Less distributions from:
Realized gain--net -- -- -- (.58) (1.00)
In excess of realized gain--net -- -- -- (1.29) --
---------- ---------- ---------- ---------- ----------
Total distributions -- -- -- (1.87) (1.00)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 8.47 $ 7.51 $ 6.95 $ 9.44 $ 17.95
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 12.78% 8.06% (26.38%) (39.58%) 41.18%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 1.37% 1.42% 1.31% 1.18% 1.12%
========== ========== ========== ========== ==========
Investment income (loss)--net .87% .40% (.18%) (.001%) (.35%)
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 98,519 $ 110,092 $ 130,310 $ 240,027 $ 511,367
========== ========== ========== ========== ==========
Portfolio turnover 71.91% 121.00% 105.73% 126.37% 75.48%
========== ========== ========== ========== ==========
* 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, 2004
Financial Highlights (continued)
The following per share data and ratios have been derived
from information provided in the financial statements. Class B
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000
Per Share Operating Performance
Net asset value, beginning of year $ 7.32 $ 6.83 $ 9.35 $ 17.75 $ 13.39
---------- ---------- ---------- ---------- ----------
Investment income (loss)--net** --++ (.03) (.08) (.10) (.18)
Realized and unrealized gain (loss)--net .87 .52 (2.44) (6.56) 5.44
---------- ---------- ---------- ---------- ----------
Total from investment operations .87 .49 (2.52) (6.66) 5.26
---------- ---------- ---------- ---------- ----------
Less distributions from:
Realized gain--net -- -- -- (.54) (.90)
In excess of realized gain--net -- -- -- (1.20) --
---------- ---------- ---------- ---------- ----------
Total distributions -- -- -- (1.74) (.90)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 8.19 $ 7.32 $ 6.83 $ 9.35 $ 17.75
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 11.89% 7.17% (26.95%) (40.01%) 40.04%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 2.16% 2.22% 2.09% 1.95% 1.88%
========== ========== ========== ========== ==========
Investment income (loss)--net .05% (.43%) (.99%) (.77%) (1.11%)
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 252,691 $ 327,483 $ 456,393 $1,046,889 $2,293,020
========== ========== ========== ========== ==========
Portfolio turnover 71.91% 121.00% 105.73% 126.37% 75.48%
========== ========== ========== ========== ==========
* 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, 2004
Financial Highlights (continued)
The following per share data and ratios have been derived
from information provided in the financial statements. Class C
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000
Per Share Operating Performance
Net asset value, beginning of year $ 7.32 $ 6.83 $ 9.36 $ 17.76 $ 13.39
---------- ---------- ---------- ---------- ----------
Investment income (loss)--net** --++ (.03) (.08) (.10) (.19)
Realized and unrealized gain (loss)--net .87 .52 (2.45) (6.56) 5.45
---------- ---------- ---------- ---------- ----------
Total from investment operations .87 .49 (2.53) (6.66) 5.26
---------- ---------- ---------- ---------- ----------
Less distributions from:
Realized gain--net -- -- -- (.54) (.89)
In excess of realized gain--net -- -- -- (1.20) --
---------- ---------- ---------- ---------- ----------
Total distributions -- -- -- (1.74) (.89)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 8.19 $ 7.32 $ 6.83 $ 9.36 $ 17.76
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 11.89% 7.17% (27.03%) (39.97%) 40.05%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 2.18% 2.24% 2.11% 1.96% 1.89%
========== ========== ========== ========== ==========
Investment income (loss)--net .05% (.43%) (.99%) (.78%) (1.12%)
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 60,771 $ 72,249 $ 95,117 $ 197,356 $ 423,800
========== ========== ========== ========== ==========
Portfolio turnover 71.91% 121.00% 105.73% 126.37% 75.48%
========== ========== ========== ========== ==========
* 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, 2004
Financial Highlights (continued)
The following per share data and ratios have been derived
from information provided in the financial statements. Class I
For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000
Per Share Operating Performance
Net asset value, beginning of year $ 7.58 $ 7.00 $ 9.48 $ 18.01 $ 13.55
---------- ---------- ---------- ---------- ----------
Investment income (loss)--net** .09 .04 --++ .03 (.02)
Realized and unrealized gain (loss)--net .89 .54 (2.48) (6.65) 5.51
---------- ---------- ---------- ---------- ----------
Total from investment operations .98 .58 (2.48) (6.62) 5.49
---------- ---------- ---------- ---------- ----------
Less distributions from:
Realized gain--net -- -- -- (.59) --
In excess of realized gain--net -- -- -- (1.32) (1.03)
---------- ---------- ---------- ---------- ----------
Total distributions -- -- -- (1.91) (1.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 8.56 $ 7.58 $ 7.00 $ 9.48 $ 18.01
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 12.93% 8.29% (26.16%) (39.39%) 41.47%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 1.13% 1.16% 1.06% .93% .87%
========== ========== ========== ========== ==========
Investment income (loss)--net 1.05% .63% .04% .25% (.09%)
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 106,785 $ 133,096 $ 55,525 $ 155,922 $ 288,517
========== ========== ========== ========== ==========
Portfolio turnover 71.91% 121.00% 105.73% 126.37% 75.48%
========== ========== ========== ========== ==========
* 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, 2004
Financial Highlights (concluded)
Class R
For the
For the Period
The following per share data and ratios have been derived Year January 3,
from information provided in the financial statements. Ended 2003++ to
August 31, August 31,
Increase in Net Asset Value: 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 7.39 $ 6.50
------------ ------------
Investment income--net*** .08 .06
Realized and unrealized gain--net .89 .83
------------ ------------
Total from investment operations .97 .89
------------ ------------
Net asset value, end of period $ 8.36 $ 7.39
============ ============
Total Investment Return**
Based on net asset value per share 13.13% 13.69%+++
============ ============
Ratios to Average Net Assets
Expenses 1.56% 1.64%*
============ ============
Investment income--net 1.36% .66%*
============ ============
Supplemental Data
Net assets, end of period (in thousands) $ 166 --+++++
============ ============
Portfolio turnover 71.91% 121.00%
============ ============
* Annualized.
** Total investment return excludes the effects of sales charges.
*** Based on average shares outstanding.
++ Commencement of operations.
+++ Aggregate total investment return.
+++++ Amount is less than $1,000.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
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 U.S. generally
accepted accounting principles, which may require the use of
management accruals and estimates. Actual results may differ from
these estimates. The Fund offers multiple classes of shares. 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 (except that Class
B shareholders have voting rights with respect to material changes
to the Class A distribution plan). 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--Equity securities that are held by the
Fund that are traded on stock exchanges or the Nasdaq National
Market are valued at the last sale price or official close price on
the exchange, 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. In cases where equity securities are traded on
more than one exchange, the securities are valued on the exchange
designated as the primary market by or under the authority of the
Board of Directors of the Fund. Long positions traded in the over-
the-counter ("OTC") market, Nasdaq Small Cap or Bulletin Board are
valued at the last available bid price or yield equivalent obtained
from one or more dealers or pricing services approved by the Board
of Directors of the Fund. Short positions traded in the OTC market
are valued at the last available ask price. Portfolio securities
that are traded both in the OTC market and on a stock exchange are
valued according to the broadest and most representative market.
Options written are valued at the last sale price in the case of
exchange-traded options or, in the case of options traded in the
OTC market, the last ask price. Options purchased are valued at
their last sale price in the case of exchange-traded options or,
in the case of options traded in the OTC market, the last bid price.
Swap agreements are valued daily based upon quotations from market
makers. Financial futures contracts and options thereon, which are
traded on exchanges, are valued at their last sale price as of the
close of such exchanges. Obligations with remaining maturities of
60 days or less are valued at amortized cost unless the Investment
Adviser believes that this method no longer produces fair
valuations.
Repurchase agreements are valued at cost plus accrued interest. The
Fund employs pricing services to provide certain securities prices
for the Fund. Securities and assets for which market quotations are
not readily available are valued at fair value as determined in good
faith by or under the direction of the Board of Directors of the
Fund, including valuations furnished by the pricing services
retained by the Fund, which may use a matrix system for valuations.
The procedures of a pricing service and its valuations are reviewed
by the officers of the Fund under the general supervision of the
Fund's Board of Directors. Such valuations and procedures will be
reviewed periodically by the Board of Directors of the Fund.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Notes to Financial Statements (continued)
Generally, trading in foreign securities, as well as U.S. government
securities and money market instruments, is substantially completed
each day at various times prior to the close of business on the New
York Stock Exchange ("NYSE"). The values of such securities used in
computing the net asset value of the Fund's shares are determined as
of such times. Foreign currency exchange rates also are generally
determined prior to the close of business on the NYSE. Occasionally,
events affecting the values of such securities and such exchange
rates may occur between the times at which they are determined and
the close of business on the NYSE that may not be reflected in the
computation of the Fund's net asset value. If events (for example, a
company announcement, market volatility or a natural disaster) occur
during such periods that are expected to materially affect the value
of such securities, those securities may be valued at their fair
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 Fund's Board of Directors.
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing when
recognized. Assets and liabilities denominated in foreign currencies
are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or
valuing (unrealized) assets or liabilities expressed in foreign
currencies into 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
movements 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 may 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.
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 may 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.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Notes to Financial Statements (continued)
(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. Interest income is recognized in the accrual basis.
(f) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates.
(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) Reclassifications--U.S. generally accepted accounting
principles require that certain components of net assets be
adjusted to reflect permanent differences between financial and
tax reporting. Accordingly, during the current year, $1,028,936
has been reclassified between undistributed net investment income
and accumulated net realized capital losses and foreign currency
transactions, and $106,365 has been reclassified between paid-in
capital in excess of par and undistributed net investment income
as a result of permanent differences attributable to transaction
gains/losses and nondeductible expenses. 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 U.K. 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.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Notes to Financial Statements (continued)
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.
For the year ended August 31, 2004, 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 $ 822 $ 11,852
Class I $ 105 $ 1,491
For the year ended August 31, 2004, MLPF&S received contingent
deferred sales charges of $126,508 and $2,154 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, 2004, the Fund lent
securities with a value of $6,188,010 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, 2004, MLIM, LLC received $75,653 in
securities lending agent fees.
In addition, MLPF&S received $250,562 in commissions on the
execution of portfolio security transactions for the Fund for the
year ended August 31, 2004.
For the year ended August 31, 2004, the Fund reimbursed MLIM $12,707
for certain accounting services.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
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, 2004 were $433,419,806 and
$641,011,188, respectively.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions
was $203,244,964 and $125,144,756 for the years ended August 31,
2004 and August 31, 2003, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended August 31, 2004 Shares Amount
Shares sold 707,209 $ 5,969,716
Automatic conversion of shares 1,437,615 12,282,386
--------------- ----------------
Total issued 2,144,824 18,252,102
Shares redeemed (5,172,582) (43,630,780)
--------------- ----------------
Net decrease (3,027,758) $ (25,378,678)
=============== ================
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Notes to Financial Statements (continued)
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)
=============== ================
Class B Shares for the Year Dollar
Ended August 31, 2004 Shares Amount
Shares sold 1,044,170 $ 8,602,162
Automatic conversion of shares (1,480,598) (12,282,386)
Shares redeemed (13,450,908) (110,144,927)
--------------- ----------------
Net decrease (13,887,336) $ (113,825,151)
=============== ================
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 C Shares for the Year Dollar
Ended August 31, 2004 Shares Amount
Shares sold 308,528 $ 2,566,158
Shares redeemed (2,757,830) (22,547,416)
--------------- ----------------
Net decrease (2,449,302) $ (19,981,258)
=============== ================
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 I Shares for the Year Dollar
Ended August 31, 2004 Shares Amount
Shares sold 2,353,975 $ 19,989,818
Shares redeemed (7,454,281) (64,226,677)
--------------- ----------------
Net decrease (5,100,306) $ (44,236,859)
=============== ================
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
=============== ================
Class R Shares for the Year Dollar
Ended August 31, 2004 Shares Amount
Shares sold 21,035 $ 187,377
Shares redeemed (1,230) (10,395)
--------------- ----------------
Net increase 19,805 $ 176,982
=============== ================
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.
The Fund charges a 2% redemption fee on the proceeds (calculated at
market value) of a redemption (either by sale or exchange) of Fund
shares made within 30 days of purchase. The redemption fee is paid
to the Fund and is intended to offset the trading costs, market
impact and other costs associated with short-term trading into and
out of the Fund. For the year ended August 31, 2004, the Fund
charged a redemption fee of $293.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Notes to Financial Statements (concluded)
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 28, 2003, the credit agreement was
renewed for one year under the same terms. The Fund did not borrow
under the credit agreement during the year ended August 31, 2004.
6. Commitments:
At August 31, 2004, the Fund had entered into foreign exchange
contracts, under which it had agreed to sell various foreign
currency with an approximate value of $28,000.
7. Distributions to Shareholders:
As of August 31, 2004, the components of accumulated losses on a tax
basis were as follows:
Undistributed ordinary income--net $ 347,003
Undistributed long-term capital gains--net --
----------------
Total undistributed earnings--net 347,003
Capital loss carryforward (621,974,577)*
Unrealized gains--net 41,834,917**
----------------
Total accumulated losses--net $ (579,792,657)
================
* On August 31, 2004, the Fund had a net capital loss carry-
forward of $621,974,577, of which $19,389,728 expires in
2008, $3,964,136 expires in 2009, $246,071,814 expires in
2010 and $352,548,899 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
gains is attributable primarily to the tax deferral of losses on
wash sales and the realization for tax purposes of unrealized
gains (losses) on certain foreign currency contracts.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Report of Independent Registered Public Accounting Firm
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, 2004, 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 the standards of the
Public Company Accounting Oversight Board (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 August 31, 2004, 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, 2004, 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 U.S. generally accepted
accounting principles.
(Ernst & Young LLP)
Philadelphia, Pennsylvania
October 15, 2004
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Officers and Directors (unaudited)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Director Director
Interested Director
Terry K. Glenn* President 1999 to President of the Merrill Lynch Investment 124 Funds None
P.O. Box 9011 and present Managers, L.P. ("MLIM")/Fund Asset 157 Portfolios
Princeton, Director Management, L.P. ("FAM")--Advised Funds
NJ 08543-9011 since 1999; Chairman (Americas Region) of
Age: 63 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
present and 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.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Officers and Directors (unaudited)(continued)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Director Director
Independent Directors*
Donald W. Burton Director 2002 to General Partner of The Burton Partnership, 23 Funds ITC DeltaCom,
P.O. Box 9095 present Limited Partnership (an Investment 36 Portfolios Inc.; Symbion,
Princeton, Partnership) since 1979; Managing General Inc.
NJ 08543-9095 Partner of The South Atlantic Venture
Age: 60 Funds since 1983; Member of the Investment
AdvisoryCouncil of the Florida State Board
of Administration since 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 37 Portfolios Bancorp
Princeton, School since 1996; James R. Williston
NJ 08543-9095 Professor of Investment Management,
Age: 72 Harvard Business School from 1971 to
1996; Director of Cambridge Bancorp.
Laurie Simon Hodrick Director 1999 to Professor of Finance and Economics, 23 Funds None
P.O. Box 9095 present Graduate School of Business, Columbia 36 Portfolios
Princeton, University since 1998.
NJ 08543-9095
Age: 41
David H. Walsh Director 2003 to Consultant with Putnam Investments from 23 Funds None
P.O. Box 9095 present 1993 to 2003 and employed in various 36 Portfolios
Princeton, capacities therewith from 1973 to 1992;
NJ 08543-9095 Director, The National Audubon Society
Age: 62 since 1980; Director, The American Museum
of Fly Fishing since 1997.
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 36 Portfolios Pharmaceu-
Princeton, and Development of Warner Lambert Co. ticals, Inc.
NJ 08543-9095 from 1979 to 1997; Director of BTG
Age: 63 International PLC (a global technology
commercialization company) since 2001;
Director of the Michael J. Fox Foundation
for Parkinson's Research 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.
MERRILL LYNCH GLOBAL GROWTH FUND, INC., AUGUST 31, 2004
Officers and Directors (unaudited)(concluded)
Position(s) Length of
Held with Time
Name, Address & Age 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, Director and Treasurer of Princeton Services
Princeton, and and since 1999; Vice President of FAMD since 1999; Director of MLIM Taxation
NJ 08543-9011 Treasurer 1999 to since 1990.
Age: 44 present
Robert C. Doll, Jr. Senior 1999 to President of MLIM and member of the Executive Management Committee of
P.O. Box 9011 Vice present ML & Co., Inc. since 2001; Global Chief Investment Officer and Senior
Princeton, President Portfolio Manager of MLIM since 1999; Chief Investment Officer of Equities
NJ 08543-9011 at Oppenheimer Funds, Inc. from 1990 to 1999 and Chief Investment Officer
Age: 50 thereof from 1998 to 1999; 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 1997
P.O. Box 9011 President present to 2000.
Princeton,
NJ 08543-9011
Age: 63
Jeffrey Hiller Chief 2004 to Chief Compliance Officer of the MLIM/FAM-advised funds and First Vice
P.O. Box 9011 Compliance present President and Chief Compliance Officer of MLIM since 2004; Global Director
Princeton, Officer of Compliance at Morgan Stanley Investment Management from 2002 to 2004;
NJ 08543-9011 Managing Director and Global Director of Compliance at Citigroup Asset
Age: 53 Management from 2000 to 2002; Chief Compliance Officer at Soros Fund
Management in 2000; Chief Compliance Officer at Prudential Financial from
1995 to 2000.
Alice A. Pellegrino Secretary 2004 to Director (Legal Advisory) of MLIM since 2002; Vice President of MLIM from 1999
P.O. Box 9011 present to 2002; Attorney associated with MLIM since 1997.
Princeton,
NJ 08543-9011
Age: 44
* 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, 2004
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third
quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are
available on the SEC's Web site at http://www.sec.gov. The Fund's
Forms N-Q may also be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
The Fund offers 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 Web site
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, 2004
Item 2 - Code of Ethics - 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 - Audit Committee Financial Expert - 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 registrant's board of directors has 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 - Principal Accountant Fees and Services
(a) Audit Fees -
Fiscal Year Ending August 31, 2004 - $38,000
Fiscal Year Ending August 31, 2003 - $41,500
(b) Audit-Related Fees -
Fiscal Year Ending August 31, 2004 - $0
Fiscal Year Ending August 31, 2003 - $0
(c) Tax Fees -
Fiscal Year Ending August 31, 2004 - $5,200
Fiscal Year Ending August 31, 2003 - $5,000
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees -
Fiscal Year Ending August 31, 2004 - $0
Fiscal Year Ending August 31, 2003 - $0
(e)(1) The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). However, such services will only be
deemed pre-approved provided that any individual project does not
exceed $5,000 attributable to the registrant or $50,000 for all of
the registrants the Committee oversees. Any proposed services
exceeding the pre-approved cost levels will require specific pre-
approval by the Committee, as will any other services not subject to
general pre-approval (e.g., unanticipated but permissible services).
The Committee is informed of each service approved subject to
general pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ending August 31, 2004 - $5,200
Fiscal Year Ending August 31, 2003 - $5,000
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's 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.
Regulation S-X Rule 2-01(c)(7)(ii) - $945,000, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies - Not Applicable
Item 8 - Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders - Not
Applicable
Item 10 - Controls and Procedures
10(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.
10(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal half-
year of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - See Item 2
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - Certifications - 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 18, 2004
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 18, 2004
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
Merrill Lynch Global Growth Fund, Inc.
Date: October 18, 2004