UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05576
Name of Fund: Merrill Lynch Global Allocation Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, Merrill Lynch Global Allocation 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: 10/31/06
Date of reporting period: 11/01/05 - 04/30/06
Item 1 - Report to Stockholders
Semi-Annual Report
April 30, 2006
Merrill Lynch
Global Allocation Fund, Inc.
(BULL LOGO) Merrill Lynch Investment Managers
www.mlim.ml.com
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
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.
Investment in foreign securities involves special risks including fluctuating
foreign exchange rates, foreign government regulations, differing degrees of
liquidity and the possibility of substantial volatility due to adverse
political, economic or other developments.
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 1-800-637-3863; (2) on
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 Allocation Fund, Inc.
Box 9011
Princeton, NJ 08543-9011
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A Letter From the President
Dear Shareholder
You may be aware that changes are on the horizon at Merrill Lynch Investment
Managers ("MLIM"). On February 15, 2006, Merrill Lynch announced plans to
combine the firm's investment advisory business, including MLIM, with another
highly regarded investment manager - BlackRock, Inc. ("BlackRock").
We believe this merger of asset management strength will benefit our
investors. MLIM is a leading investment management organization with over
$576 billion in assets under management globally and 2,757 employees in
17 countries. It offers over 100 investment strategies in vehicles ranging
from mutual funds to institutional portfolios. BlackRock is one of the
largest publicly traded investment management firms in the United States
with $463.1 billion in assets under management and 1,839 employees. It
manages assets on behalf of institutional and individual investors worldwide
through a variety of equity, fixed income, liquidity and alternative
investment products.
At the completion of the transaction, which is expected in the third quarter
of this year, the resultant firm will be a top-10 investment manager worldwide
with over $1 trillion in assets under management.* The combined company will
provide a wider selection of high-quality investment solutions across a
range of asset classes and investment styles. MLIM and BlackRock possess
complementary capabilities that together create a well-rounded organization
uniting some of the finest money managers in the industry. At the same time,
the firms share similar values and beliefs - they are focused on delivering
excellence on behalf of clients, and both make investment performance their
single most important mission. In short, the merger only reinforces our
commitment to shareholders.
Most of MLIM's investment products - including mutual funds, separately
managed accounts, annuities and variable insurance funds - eventually will
carry the "BlackRock" name. As a shareholder in one or more MLIM-advised
mutual funds, you will receive a proxy package in the coming weeks in
connection with this transaction. After you receive this information, should
you have any questions or concerns, do not hesitate to contact your financial
advisor.
As always, we thank you for entrusting us with your investment assets, and we
look forward to continuing to serve your investment needs with even greater
strength and scale as the new BlackRock.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Chief Investment Officer
Merrill Lynch Investment Managers
* $1.039 trillion in assets under management as of March 31, 2006.
Data, including assets under management, are as of March 31, 2006.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
We are pleased to present to you the management team of
Merrill Lynch Global Allocation Fund, Inc.
Dennis Stattman, who joined Merrill Lynch Investment Managers in 1989, is
Senior Portfolio Manager of Merrill Lynch Global Allocation Fund. Mr. Stattman
received a bachelor's degree from the University of Virginia and an MBA from
the University of Chicago and is a CFA (R) charterholder. Mr. Stattman's
investment team includes Associate Portfolio Manager Dan Chamby and Analysts
Karen Morely Westcott, James Wei, Catharine Brady Rauscher and Lisa O'Donnell.
Mr. Chamby holds a bachelor's degree from Duquesne University and an MBA
from the Wharton School of the University of Pennsylvania and is a CFA
charterholder. Ms. Westcott received an MBA from Boston College and is a CFA
charterholder. Mr. Wei received a bachelor's degree from the California
Institute of Technology and both a master's degree and an MBA from the
University of Chicago and is a CFA charterholder. Ms. Rauscher earned a
bachelor's degree from The Pennsylvania State University and an MBA from
St. Joseph's University and is a CFA charterholder. Ms. O'Donnell received a
bachelor's degree from The College of William and Mary and a Juris Doctorate
from Rutgers University School of Law.
Dennis Stattman
Senior Portfolio Manager
Table of Contents Page
A Letter From the President 2
A Discussion With Your Fund's Portfolio Manager 4
Announcement to Shareholders 6
Portfolio Information 6
Performance Data 8
Disclosure of Expenses 11
Schedule of Investments 12
Financial Information 28
Financial Highlights 31
Notes to Financial Statements 36
Officers and Directors 42
CFA (R) and Chartered Financial Analyst (R) are trademarks owned by the CFA
Institute.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
A Discussion With Your Fund's Portfolio Manager
The Fund generated a positive, double-digit return and outperformed its
Reference Portfolio for the six-month period, benefiting from an asset
allocation that favored Asian equities over U.S. equities and fixed income
securities.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended April 30, 2006, Merrill Lynch Global Allocation
Fund, Inc.'s Class A, Class B, Class C, Class I and Class R Shares had total
returns of +13.62%, +13.21%, +13.18%, +13.77% and +13.46%, respectively. Fund
results significantly exceeded the +9.45% return of its Reference Portfolio
for the six-month period, but fell short of the +17.18% return of its broad-
based, all-equity benchmark, the Financial Times Stock Exchange (FTSE) World
Index. (Fund results shown do not reflect sales charges and would be lower if
sales charges were included. Complete performance information, including
average annual total returns, can be found on pages 8 - 10 of this report to
shareholders. A full description of the Reference Portfolio can be found on
page 9 of this report to shareholders.)
The Fund invests in a combination of equities and bonds; therefore, the
Reference Portfolio provides both a truer representation of the Fund's
composition and a more comparable means for measurement. Returns for each
component of the Reference Portfolio for the six months ended April 30, 2006,
were as follows: the Standard & Poor's 500 (S&P 500) Index returned +9.64%;
the FTSE World Index (ex-U.S.) returned +24.65%; the Merrill Lynch Treasury
Index GA05 returned -0.19%; and the Citigroup World Government Bond Index
(ex-U.S.) returned +2.39%.
The Fund slightly underperformed its comparable Lipper category of Global
Flexible Portfolio Funds, which posted an average return of +14.02% for the
six months ended April 30, 2006. (Funds in this Lipper category allocate their
investments across various asset classes, including both domestic and foreign
stocks, bonds and money market instruments, and focus on total return. At
least 25% of portfolio assets are invested in securities traded outside the
United States, and may include shares of gold mines, gold-oriented mining
finance houses, gold coins or bullion.)
The Fund was able to capitalize on favorable equity performance in most
developed markets around the world. While U.S. stocks, as measured by the S&P
500 Index, returned +9.64% for the six-month period, the MSCI Europe Index and
the MSCI Pacific Index returned +22.55% and +23.64%, respectively. The Pacific
region's strong advance was led by South Korea, Japan and India, where the
KOSPI, Nikkei and Sensex indexes rose 35.77%, 27.76% and 51.12%, respectively.
Advances in equity prices were propelled by rising gross domestic product and
strong corporate profits in the world's developed economies, despite increasing
interest rates and energy prices. Oil prices, which reached an all-time high
of $75 per barrel on April 21, 2006, rose more than 22% over the six-month
period. Meanwhile, the U.S. Federal Reserve Board (the Fed) continued its
campaign to "normalize" short-term interest rates, increasing the federal
funds rate 100 basis points (1%) during the period and 25 basis points more on
May 10, 2006, bringing the target rate to 5%.
Bond markets in most developed nations fell in U.S. dollar terms as central
banks appeared to be in a synchronized rate-tightening mode. In the United
States, the long end of the Treasury market finally started to show signs of
succumbing to the Fed interest rate hikes, as the 10-year Treasury yield rose
from 4.57% to 5.05%. In Asia, long-term government bonds continued to fall in
dollar terms in Japan, Hong Kong, South Korea, Taiwan and Singapore. Although
the Bank of Japan opted not to increase short-term interest rates, the
Japanese central bank signaled that it is prepared to end a long-standing
"quantitative easing" policy. Investors, encouraged by Asian corporate
profitability and perhaps concerned about the possibility of higher short-term
rates, continued to shift capital into equities. In Europe, meanwhile, bonds
declined in dollar terms as the European Central Bank raised its benchmark
rate for the first time in five years. U.K. gilts also declined during the
period amid inflation concerns, despite no change in the Bank of England's
interest policy.
What factors most influenced Fund performance during the period?
The Fund's performance reflected an asset allocation strategy that included a
slight underweight in equities at the beginning of the period and a
significant underweight in fixed income, particularly high-quality, long-term
U.S. government bonds. During the six-month period, the Fund benefited from a
significant overweight exposure to Asian equities, notably in India, Japan and
South Korea, and effective stock selection in the United States as global
equity markets appreciated. The Fund's performance was further enhanced by
effective security selection in the industrials, energy and consumer staples
sectors as the price of oil continued to rise and consumer spending remained
strong. In addition, growth in Asia, notably in China, continued to fuel
demand for raw materials, particularly energy resources, and capital
investment in energy-related production.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Although we were considerably underweight in fixed income as a whole, the Fund
continued to benefit from the makeup of its fixed income component. This
included some exposure to high yield issues, including U.S. corporate bonds
and convertible securities, and emerging markets debt. The Fund remained
underweight in its exposure to U.S. Treasury issues and non-U.S.-dollar
sovereign debt, notably in Japan, as yields remained unattractive.
Offsetting the positives somewhat, relative to the Reference Portfolio, was
an underweight position in European equities, which appreciated during the
six-month period.
What changes were made to the portfolio during the period?
We continued to focus on attractively valued stocks around the world,
particularly in Asia. We believe valuations in Asia, especially Japan, remain
attractive relative to the rest of the world, despite the strong performance
in these markets over the past year. Our strategy included increasing the
quality of the equity portfolio and taking profits in stocks that had
significantly appreciated, notably trimming our overweight positions in the
strong-performing materials and energy sectors.
We began and ended the period with an equity weighting of 57.6% of net assets,
slightly below the Reference Portfolio's 60%. During the six months, we
modestly trimmed the Fund's exposure to U.S. equities and increased exposure
to equities in Brazil and Asia. We believe corporate earnings growth rates in
the United States will continue to slow and the sustainability of consumer
spending will abate as interest rates rise and inflation expectations increase.
The Fund was significantly underweight in fixed income securities throughout
the six months, beginning the period with 20.2% of net assets invested in
bonds worldwide compared to the Reference Portfolio's 40%. The Fund increased
its exposure to U.S. Treasury Inflation Protected Securities (TIPS) and ended
the period with a fixed income weighting of approximately 25%. (Please note
that the Fund's U.S. fixed income exposure includes bonds of non-U.S. issuers
denominated in U.S. dollars.) Approximately 3.1% of the Fund's net assets was
invested in convertible securities as of April 30, 2006. These securities are
reported as a portion of the Fund's fixed income allocation, although some of
these securities may tend to perform similar to equities. Given the changes
outlined above, primarily the increase in fixed income exposure, the Fund's
position in cash equivalent securities decreased from 22.2% of net assets to
18.0% over the past six months. Cash is actively managed and, as such,
allocations to cash are an integral part of the Fund's investment strategy.
Currently, cash is considered zero-duration fixed income and includes short-
term U.S. dollar and non-U.S. dollar fixed income securities and other money
market-type instruments.
How would you characterize the Fund's position at the close of the period?
Compared to its Reference Portfolio, the Fund ended the period slightly
underweight in equities, significantly underweight in fixed income securities
and overweight in cash reserves.
Within the equity segment, the investment team looks for undervalued companies
that are expected to generate above-average rates of return. The Fund ended
the period underweight in U.S. and European stocks and overweight in Asian
stocks. In terms of sector allocations, the Fund was overweight in the energy,
financials, materials, industrials and telecommunications sectors. It had
underweights in health care, consumer discretionary and technology, and
relatively neutral weightings in utilities and consumer staples.
At April 30, 2006, the Fund had little exposure to long-term, high-grade fixed
income securities in the United States, as we find the current yield on these
instruments to be unattractive relative to the associated risk of higher
interest rates. As for currency exposure, we ended the period with
underweights in the U.S. dollar, British pound sterling and the euro, and
small overweight positions in several Asian currencies.
Once again, the portfolio's equity allocation at period-end - although
relatively neutral to our Reference Portfolio - was still higher than during
most of the Fund's history. For that reason, we expect that the Fund may
exhibit a somewhat higher beta versus the S&P 500 Index and higher volatility
in net asset value than historically has been the case. Nevertheless, given
the Fund's current positioning, we believe that both of these measures should
remain below those typical of most all-equity funds in most market conditions.
Dennis Stattman
Vice President and Senior Portfolio Manager
Dan Chamby
Vice President and Assistant Portfolio Manager
May 15, 2006
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Announcement to Shareholders
On February 15, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co.,
Inc. ("Merrill Lynch") entered into an agreement to contribute Merrill Lynch's
investment management business, Merrill Lynch Investment Managers, L.P. and
certain affiliates (including Fund Asset Management, L.P. and Merrill Lynch
Investment Managers International Limited), to BlackRock to create a new
independent company that will be one of the world's largest asset management
firms with over $1 trillion in assets under management (based on combined
assets under management as of March 31, 2006). The transaction is expected to
close in the third quarter of 2006, at which time the new company will operate
under the BlackRock name. The Fund's Board of Directors has approved a new
investment advisory agreement with BlackRock Advisors, Inc. or its successor
("BlackRock Advisors") on substantially the same terms and for the same
advisory fee as the current investment advisory agreement with the Investment
Adviser. If the new agreement is approved by the Fund's shareholders,
BlackRock Advisors is expected to become the Fund's investment adviser upon
the closing of the transaction between Merrill Lynch and BlackRock.
Portfolio Information
Overall Asset Exposure as of April 30, 2006
Percent of Fund's Net Assets Reference Portfolio+++
4/30/06 10/31/05 Percentages
U.S. Equities 22.8*% 23.7 % 36.0%
European Equities 11.3* 11.0* 14.2
Pacific Basin Equities 20.1 20.2 7.8
Other Equities 3.7 2.7 2.0
Total Equities 57.9* 57.6* 60.0
U.S. Dollar Denominated Fixed Income Securities 15.5 12.0 24.0
U.S. Issuers 12.8 9.2 --
Non-U.S. Issuers 2.7 2.8 --
Non-U.S. Dollar Denominated Fixed Income Securities 8.6 8.2 16.0
Total Fixed Income Securities 24.1++ 20.2++ 40.0
Cash & Cash Equivalents** 18.0 22.2 --
* Includes value of financial futures contracts.
** Cash & Cash Equivalents are reduced by the market (or nominal) value of long financial
futures contracts.
++ Includes Preferred Stock.
+++ The Reference Portfolio is an unmanaged weighted index comprised as follows: 36% of the
S&P 500 Index; 24% FTSE World Index (Ex-U.S.) Equities; 24% Merrill Lynch Treasury Index GA05;
and 16% Citigroup World Government Bond Index (Ex-U.S.). Descriptions of these Indexes can be
found on page 9 of this report to shareholders in the "Recent Performance Results" section.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Portfolio Information (concluded)
Worldwide Investments as of April 30, 2006
Breakdown of Equity &
Fixed Income Securities Percent of
By Country Net Assets++
United States 54.2%*
Japan 9.7
Europe 4.2*
United Kingdom 3.8
Germany 3.8
France 3.5
India 3.1
Brazil 2.5
South Korea 2.3
Canada 1.9
Singapore 1.7*
Hong Kong 1.4
Malaysia 1.3
Switzerland 1.3*
Australia 1.3
Italy 1.1
Netherlands 1.0
Thailand 1.0
Sweden 0.9
Taiwan 0.7
China 0.6
Mexico 0.4
Spain 0.4
Chile 0.3
Israel 0.3
Poland 0.3
Finland 0.3
Ireland 0.2
New Zealand 0.2
Norway 0.2
South Africa 0.1
Belgium 0.1
Hungary 0.1
Iceland 0.1
Peru --**
Indonesia --**
Luxembourg --**
Russia --**
++ Total may not equal 100%.
* Includes investments in short-term securities.
** Holdings are less than 0.1%.
Five Largest Industries Percent of
(Equity Investments) Net Assets
Oil, Gas & Consumable Fuels 7.1%
Insurance 5.6
Commercial Banks 5.5
Metals & Mining 2.7
Construction & Engineering 2.3
For Fund compliance purposes, the Fund's
industry classifications refer to 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 industry
sub-classifications for reporting ease.
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
Reliance Industries Ltd. 0.9%
General Electric Co. 0.9
Foster Wheeler Ltd. 0.8
Millea Holdings, Inc. 0.8
Mitsui Sumitomo
Insurance Co., Ltd. 0.7
American International
Group, Inc. 0.7
Microsoft Corp. 0.6
Exxon Mobil Corp. 0.6
Cisco Systems, Inc. 0.6
CSX Corp. 0.6
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
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. 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.) All returns for periods greater than eight years reflect
this conversion.
* 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.
* Effective December 28, 2005, Class I Shares are no longer subject to any
front-end sales charge. Class I Shares bear no ongoing distribution or account
maintenance fees and are available only to eligible investors. Had the sales
charge been included, the Fund's Class I Shares performance would have been
lower.
* Class R Shares do not incur a maximum sales charge (front-end load) or a
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. Prior to inception, Class R Share
performance results are those of Class I Shares (which have no distribution or
account maintenance fees) restated for Class R Share fees.
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 performance data current to
the most recent month-end. 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 may charge a 2% redemption fee for sales or exchanges of
shares within 30 days of purchase or exchange. 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. The Fund's Investment Adviser
voluntarily waived a portion of its management fee. Without such a waiver, the
Fund's performance would have been lower.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Performance Data (continued)
Recent Performance Results
6-Month 12-Month 10-Year
As of April 30, 2006 Total Return Total Return Total Return
ML Global Allocation Fund, Inc.--Class A Shares* +13.62% +21.42% +197.16%
ML Global Allocation Fund, Inc.--Class B Shares* +13.21 +20.45 +179.68
ML Global Allocation Fund, Inc.--Class C Shares* +13.18 +20.52 +175.23
ML Global Allocation Fund, Inc.--Class I Shares* +13.77 +21.77 +204.91
ML Global Allocation Fund, Inc.--Class R Shares* +13.46 +21.07 +191.26
FTSE World Index** +17.18 +26.76 +119.19
Reference Portfolio*** + 9.45 +12.66 +107.59
U.S. Stocks: S&P 500 (R) Index**** + 9.64 +15.42 +135.44
Non-U.S. Stocks: FTSE World Index (Ex-U.S.) Equities***** +24.65 +37.47 +109.52
U.S. Bonds: ML Treasury Index GA05++ - 0.19 - 1.13 + 69.81
Non-U.S. Bonds: Citigroup World Government
Bond Index (Ex-U.S.)++++ + 2.39 - 4.90 + 61.63
* Investment results shown do not reflect sales charges; results shown would be lower if a sales
charge was included. Cumulative 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.
** This unmanaged broad-based capitalization-weighted Index is comprised of 2,200 equities from
24 countries in 12 regions, including the United States.
*** The Reference Portfolio is an unmanaged weighted Index comprised as follows: 36% of the S&P 500
Index; 24% of the FTSE World Index (Ex-U.S.) Equities; 24% of the Merrill Lynch Treasury Index
GAO5; and 16% of the Citigroup World Government Bond Index (Ex-U.S.).
**** This unmanaged Index covers 500 industrial, utility, transportation and financial companies
of the U.S. markets (mostly NYSE issues) representing about 75% of NYSE market capitalization
and 30% of NYSE issues.
***** This unmanaged capitalization-weighted Index is comprised of 1,631 companies in 28 countries,
excluding the United States.
++ This unmanaged Index is designed to track the total return of the current coupon five-year U.S.
Treasury bond.
++++ This unmanaged market capitalization-weighted Index tracks ten government bond indexes,
excluding the United States.
S&P 500 is a registered trademark of the McGraw-Hill Companies.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Performance Data (concluded)
Average Annual Total Return
Return Without Return With
Sales Charge Sales Charge**
Class A Shares*
One Year Ended 4/30/06 +21.42% +15.05%
Five Years Ended 4/30/06 +10.95 + 9.76
Ten Years Ended 4/30/06 +11.51 +10.91
Return Return
Without CDSC With CDSC++++
Class B Shares++
One Year Ended 4/30/06 +20.45% +16.45%
Five Years Ended 4/30/06 +10.09 + 9.82
Ten Years Ended 4/30/06 +10.83 +10.83
Return Return
Without CDSC With CDSC++++
Class C Shares++++++
One Year Ended 4/30/06 +20.52% +19.52%
Five Years Ended 4/30/06 +10.09 +10.09
Ten Years Ended 4/30/06 +10.65 +10.65
Class I Shares Return
One Year Ended 4/30/06 +21.77%
Five Years Ended 4/30/06 +11.23
Ten Years Ended 4/30/06 +11.79
Class R Shares Return
One Year Ended 4/30/06 +21.07%
Five Years Ended 4/30/06 +10.77
Ten Years Ended 4/30/06 +11.28
* Maximum sales charge is 5.25%.
** Assuming maximum sales charge.
++ Maximum contingent deferred sales charge is 4% and is
reduced to 0% after six years.
++++ Assuming payment of applicable contingent deferred sales
charge.
++++++ Maximum contingent deferred sales charge is 1% and is
reduced to 0% after one year.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
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 12b-1 fees, and other Fund expenses. The following example (which
is based on a hypothetical investment of $1,000 invested on November 1, 2005
and held through April 30, 2006) 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 November 1, 2005
November 1, April 30, to April 30,
2005 2006 2006
Actual
Class A $1,000 $1,136.20 $5.60
Class B $1,000 $1,132.10 $9.57
Class C $1,000 $1,131.80 $9.57
Class I $1,000 $1,137.70 $4.30
Class R $1,000 $1,134.60 $6.91
Hypothetical (5% annual return before expenses)**
Class A $1,000 $1,019.25 $5.30
Class B $1,000 $1,015.53 $9.04
Class C $1,000 $1,015.53 $9.04
Class I $1,000 $1,020.48 $4.06
Class R $1,000 $1,018.03 $6.53
* For each class of the Fund, expenses paid are equal to the annualized expense ratio for the class
(1.07% for Class A, 1.83% for Class B, 1.83% for Class C, .82% for Class I and 1.32% for Class R),
multiplied by the average account value over the period, multiplied by 179/365 (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 365.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
Australia--1.1%
Beverages--0.1%
Coca-Cola Amatil Ltd. 1,050,000 $ 5,799,872
Capital Markets--0.2%
Macquarie Bank Ltd. 425,000 23,024,219
Food Products--0.0%
Great Southern Plantations Ltd. 1,250,000 3,708,383
Metals & Mining--0.4%
BHP Billiton Ltd. 1,000,000 22,231,327
Newcrest Mining Ltd. 650,000 11,244,651
Rio Tinto Ltd. 350,000 20,886,445
Zinifex Ltd. 1,000,000 7,853,046
---------------
62,215,469
Oil, Gas & Consumable Fuels--0.1%
Excel Coal Ltd. 900,000 5,824,911
Woodside Petroleum Ltd. 200,000 7,101,885
---------------
12,926,796
Transportation Infrastructure--0.3%
Macquarie Airports 2,000,000 4,977,389
Macquarie Infrastructure Group 11,500,000 31,150,414
Transurban Group 2,475,000 12,394,154
---------------
48,521,957
Total Common Stocks in Australia 156,196,696
Belgium--0.1%
Leisure Equipment & Products--0.1%
AGFA-Gevaert NV 658,534 13,330,446
Total Common Stocks in Belgium 13,330,446
Brazil--1.4%
Airlines--0.0%
Gol--Linhas Aereas Inteligentes
SA (d)(e) 155,000 5,745,850
Chemicals--0.1%
Braskem SA 880,000 6,185,774
Commercial Banks--0.0%
Uniao de Bancos Brasileiros SA (e) 60,000 4,761,000
Construction & Engineering--0.1%
Obrascon Huarte Lain Brasil SA (b) 506,100 6,168,793
Electric Utilities--0.0%
Cia Energetica de Minas Gerais (e) 110,000 5,212,900
Food & Staples Retailing--0.0%
Cia Brasileira de Distribuicao Grupo
Pao de Acucar 125,000,000 4,823,670
Food Products--0.1%
Cosan SA Industria e Comercio (b) 217,000 16,664,770
Internet & Catalog Retail--0.1%
Submarino SA 310,000 8,375,374
Metals & Mining--0.2%
Companhia Vale do Rio Doce
(Preference 'A' Shares) (e) 350,000 15,568,000
Usinas Siderurgicas de Minas Gerais SA
(Preference 'A' Shares) 300,000 11,404,662
---------------
26,972,662
Oil, Gas & Consumable Fuels--0.6%
Petroleo Brasileiro SA (e) 850,000 84,005,500
Shares
Country Industry Common Stocks Held Value
Brazil (concluded)
Paper & Forest Products--0.0%
Aracruz Celulose SA (e) 85,000 $ 4,681,800
Road & Rail--0.0%
Localiza Rent A Car SA 197,600 4,157,513
Software--0.1%
Totvs SA (b) 500,000 9,802,750
Transportation Infrastructure--0.1%
All America Latina Logistica SA 120,000 7,574,991
Water Utilities--0.0%
Companhia de Saneamento de
Minas Gerais (b) 500,000 5,037,657
Wireless Telecommunication
Services--0.0%
Vivo Participacoes SA (d)(e) 1,300,000 5,369,000
Total Common Stocks in Brazil 205,540,004
Canada--1.6%
Chemicals--0.0%
Agrium Inc. 190,000 4,905,800
Communications Equipment--0.1%
Nortel Networks Corp. (b) 3,037,000 8,078,420
Insurance--0.0%
Sun Life Financial, Inc. 11,400 479,484
Metals & Mining--0.6%
Alamos Gold, Inc. (b) 1,800,000 16,947,035
Barrick Gold Corp. 379,740 11,574,475
Bema Gold Corp. (b) 8,463,000 47,732,060
IPSCO, Inc. 4,600 474,628
Kinross Gold Corp. (b) 1,000,000 12,250,000
---------------
88,978,198
Oil, Gas & Consumable Fuels--0.3%
Petro-Canada 278,600 13,674,535
Suncor Energy, Inc. 18,000 1,537,923
Suncor Energy, Inc. (e) 300,000 25,722,000
Talisman Energy, Inc. 75,000 4,226,050
---------------
45,160,508
Pharmaceuticals--0.0%
Biovail Corp. 19,600 510,776
Road & Rail--0.4%
Canadian Pacific Railway Ltd. 1,155,800 61,325,421
Wireless Telecommunication
Services--0.2%
Rogers Communications, Inc. Class B 701,400 29,788,458
Total Common Stocks in Canada 239,227,065
Chile--0.0%
Electric Utilities--0.0%
Enersis SA (e) 400,000 4,884,000
Total Common Stocks in Chile 4,884,000
China--0.5%
Automobiles--0.0%
Denway Motors Ltd. 10,000,000 4,030,360
Electrical Equipment--0.1%
Shanghai Electric Group Corp. (b) 24,766,000 9,582,326
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
China (concluded)
Insurance--0.1%
China Life Insurance Co. Ltd. (b)(e) 124,300 $ 6,702,256
Ping An Insurance Group Co. of
China Ltd. 1,725,000 4,749,860
---------------
11,452,116
Oil, Gas & Consumable Fuels--0.2%
China Shenhua Energy Co. Ltd. Class H 10,633,400 19,268,250
Yanzhou Coal Mining Co. Ltd. 8,191,300 6,972,533
---------------
26,240,783
Road & Rail--0.1%
Guangshen Railway Co. Ltd. 34,361,300 13,184,096
Transportation Infrastructure--0.0%
Hainan Meilan International Airport
Co., Ltd. 5,459,600 3,098,185
Total Common Stocks in China 67,587,866
Finland--0.3%
Communications Equipment--0.1%
Nokia Oyj (e) 300,000 6,798,000
Electric Utilities--0.2%
Fortum Oyj 1,386,103 34,955,071
Total Common Stocks in Finland 41,753,071
France--1.8%
Automobiles--0.4%
Peugeot SA 356,902 23,422,719
Renault SA 280,839 32,545,868
---------------
55,968,587
Commercial Banks--0.6%
BNP Paribas 503,316 47,486,828
BNP Paribas (b) 52,392 4,774,788
Credit Agricole SA 1,001,729 40,302,851
---------------
92,564,467
Communications Equipment--0.0%
Alcatel SA (b)(d)(e) 244,500 3,525,690
Construction & Engineering--0.2%
Vinci SA 199,338 19,773,851
Vinci SA (b) 36,243 3,538,152
---------------
23,312,003
Food & Staples Retailing--0.2%
Carrefour SA 481,845 27,907,885
Oil, Gas & Consumable Fuels--0.4%
Total SA 223,786 61,790,836
Total Common Stocks in France 265,069,468
Germany--1.6%
Air Freight & Logistics--0.2%
Deutsche Post AG 1,176,073 31,302,886
Chemicals--0.2%
BASF AG 330,223 28,269,055
Commercial Banks--0.1%
Deutsche Postbank AG 267,256 20,400,964
Construction & Engineering--0.2%
Hochtief AG 355,814 24,292,540
Industrial Conglomerates--0.3%
Siemens AG 453,631 42,856,292
Shares
Country Industry Common Stocks Held Value
Germany (concluded)
Insurance--0.1%
Allianz AG Registered Shares 113,645 $ 18,996,424
Metals & Mining--0.3%
ThyssenKrupp AG 1,118,180 36,804,569
Multi-Utilities--0.2%
RWE AG 334,107 28,921,401
Total Common Stocks in Germany 231,844,131
Hong Kong--0.9%
Commercial Banks--0.2%
HSBC Holdings Plc 1,263,659 21,545,430
Electric Utilities--0.1%
Cheung Kong Infrastructure Holdings Ltd. 4,499,900 14,683,081
Industrial Conglomerates--0.2%
Hutchison Whampoa Ltd. 3,330,000 32,683,059
Real Estate--0.4%
Cheung Kong Holdings Ltd. 1,590,000 17,912,403
Sun Hung Kai Properties Ltd. 1,991,700 22,758,910
Wharf Holdings Ltd. 4,000,000 16,044,057
---------------
56,715,370
Total Common Stocks in Hong Kong 125,626,940
Hungary--0.1%
Oil, Gas & Consumable Fuels--0.1%
Mol Magyar Olaj-es Gazipari Rt. 170,228 20,226,339
Total Common Stocks in Hungary 20,226,339
India--2.4%
Automobiles--0.2%
Bajaj Auto Ltd. 390,000 25,539,942
Chemicals--0.9%
Reliance Industries Ltd. 6,000,000 134,627,630
Commercial Banks--0.1%
State Bank of India Ltd. 568,500 11,168,117
Construction Materials--0.2%
Gujarat Ambuja Cements Ltd. 8,594,982 22,283,995
Consumer Finance--0.0%
Reliance Capital Ventures Ltd. (b) 6,400,000 3,662,028
IT Services--0.3%
Infosys Technologies Ltd. 605,000 42,213,281
Oil, Gas & Consumable Fuels--0.1%
Hindustan Petroleum Corp. 200,000 1,433,819
Reliance Energy Ventures Ltd. (b) 6,400,000 6,105,755
Reliance Natural Resources Ltd. (b) 6,400,000 4,210,620
---------------
11,750,194
Pharmaceuticals--0.0%
Wockhardt Ltd. 150,000 1,475,287
Road & Rail--0.1%
Container Corp. of India 470,000 17,004,342
Thrifts & Mortgage Finance--0.2%
Housing Development Finance Corp. 1,250,000 36,133,530
Wireless Telecommunication
Services--0.3%
Reliance Communication Ventures Ltd. (b) 6,400,000 42,840,031
Total Common Stocks in India 348,698,377
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
Indonesia--0.0%
Commercial Banks--0.0%
Bank Danamon Indonesia Tbk PT 7,000,000 $ 4,100,085
Total Common Stocks in Indonesia 4,100,085
Ireland--0.2%
Commercial Banks--0.2%
Allied Irish Banks Plc 1,298,235 31,316,463
Total Common Stocks in Ireland 31,316,463
Israel--0.3%
Communications Equipment--0.2%
ECI Telecom Ltd. (b)(e) 3,115,000 33,268,200
Pharmaceuticals--0.1%
Teva Pharmaceutical Industries Ltd. (e) 250,001 10,125,040
Software--0.0%
Ectel Ltd. (b)(e) 166,000 909,680
Total Common Stocks in Israel 44,302,920
Italy--1.0%
Commercial Banks--0.4%
Capitalia SpA 2,437,068 21,120,621
UniCredito Italiano SpA 4,686,881 35,263,633
---------------
56,384,254
Electric Utilities--0.2%
Enel SpA 2,333,483 20,152,367
Insurance--0.1%
Assicurazioni Generali SpA 537,427 20,112,810
Oil, Gas & Consumable Fuels--0.3%
ENI SpA 1,621,835 49,480,196
Total Common Stocks in Italy 146,129,627
Japan--9.4%
Auto Components--0.1%
Toyota Industries Corp. 450,000 20,017,513
Automobiles--0.5%
Honda Motor Co., Ltd. 179,100 12,687,557
Suzuki Motor Corp. 2,500,000 60,858,144
---------------
73,545,701
Beverages--0.5%
Coca-Cola Central Japan Co., Ltd. 1,500 14,185,639
Coca-Cola West Japan Co., Ltd. 815,500 20,066,156
Hokkaido Coca-Cola Bottling Co., Ltd. 717,000 4,884,641
Kinki Coca-Cola Bottling Co., Ltd. 1,007,000 11,154,597
Mikuni Coca-Cola Bottling Co., Ltd. 1,477,500 17,323,752
---------------
67,614,785
Building Products--0.1%
Asahi Glass Co., Ltd. 1,250,000 17,600,701
Capital Markets--0.3%
Nomura Holdings, Inc. 1,750,000 39,459,282
Chemicals--0.4%
Shin-Etsu Chemical Co., Ltd. 550,000 31,690,018
Sumitomo Chemical Co., Ltd. 3,249,300 28,395,809
---------------
60,085,827
Shares
Country Industry Common Stocks Held Value
Japan (continued)
Commercial Banks--0.9%
The Bank of Fukuoka Ltd. 2,674,000 $ 22,977,331
The Bank of Yokohama Ltd. 2,000,000 15,639,229
Mitsubishi UFJ Financial Group, Inc. 1,855 29,075,744
Shinsei Bank Ltd. 2,749,600 19,189,415
Sumitomo Mitsui Financial Group, Inc. 4,400 48,161,121
---------------
135,042,840
Construction & Engineering--0.4%
JGC Corp. 1,750,000 30,571,366
Kinden Corp. 1,440,000 13,529,947
Okumura Corp. 3,250,000 17,985,989
---------------
62,087,302
Consumer Finance--0.2%
Credit Saison Co., Ltd. 550,000 28,752,189
Diversified Financial Services--0.0%
NCB Holdings Ltd. 34,970 5,944,900
Electric Utilities--0.1%
Chubu Electric Power Co., Inc. 400,000 10,472,855
Electrical Equipment--0.5%
RHJ International (b)(d) 2,146,500 53,265,711
RHJ International (b)(j) 911,000 22,606,598
---------------
75,872,309
Electronic Equipment
& Instruments--0.2%
Hitachi Ltd. 1,000,000 7,416,813
Murata Manufacturing Co., Ltd. 400,000 29,036,778
---------------
36,453,591
Food & Staples Retailing--0.3%
Ministop Co., Ltd. 200,000 4,597,198
Seven & I Holdings Co. Ltd. 1,000,000 38,616,462
---------------
43,213,660
Food Products--0.2%
Ajinomoto Co., Inc. 1,461,400 18,145,930
House Foods Corp. 250,000 4,154,991
---------------
22,300,921
Gas Utilities--0.2%
Tokyo Gas Co., Ltd. 5,972,000 28,814,116
Household Durables--0.0%
Rinnai Corp. 175,000 4,811,734
Household Products--0.1%
Rohto Pharmaceutical Co., Ltd. 838,700 10,178,968
Insurance--2.3%
Aioi Insurance Co., Ltd. 7,750,600 55,923,769
Millea Holdings, Inc. 5,700 113,301,226
Mitsui Sumitomo Insurance Co., Ltd. 7,713,350 103,677,690
Nipponkoa Insurance Co., Ltd. 6,750,000 60,111,646
---------------
333,014,331
Machinery--0.3%
Fanuc Ltd. 150,000 14,146,235
Kubota Corp. 2,500,000 28,174,256
---------------
42,320,491
Media--0.1%
Toho Co., Ltd. 765,500 14,780,451
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
Japan (concluded)
Office Electronics--0.3%
Brother Industries Ltd. 750,000 $ 8,366,900
Canon, Inc. 500,000 38,134,851
---------------
46,501,751
Pharmaceuticals--0.5%
Shionogi & Co., Ltd. 918,800 15,455,471
Takeda Pharmaceutical Co., Ltd. 800,000 48,756,567
Tanabe Seiyaku Co., Ltd. 994,000 11,680,806
---------------
75,892,844
Real Estate--0.2%
Marco Polo Investment Holdings Ltd. 4,121 10,509,134
NTT Urban Development Co. 2,400 19,649,737
---------------
30,158,871
Road & Rail--0.1%
East Japan Railway Co. 2,600 20,239,930
Tobacco--0.1%
Japan Tobacco, Inc. 4,930 19,771,804
Trading Companies
& Distributors--0.3%
Mitsubishi Corp. 1,876,200 45,262,093
Wireless Telecommunication
Services--0.2%
NTT DoCoMo, Inc. 18,500 27,539,405
Total Common Stocks in Japan 1,397,751,165
Luxembourg--0.0%
Wireless Telecommunication
Services--0.0%
Millicom International Cellular SA (b) 10,400 511,472
Total Common Stocks in Luxembourg 511,472
Malaysia--0.5%
Diversified Telecommunication
Services--0.0%
Telekom Malaysia Bhd 2,500,000 6,725,066
Electric Utilities--0.1%
Tenaga Nasional Bhd 8,125,000 19,166,437
Food Products--0.2%
IOI Corp. Bhd 5,600,000 21,939,578
Independent Power Producers
& Energy Traders--0.0%
Malakoff Bhd 1,000,000 2,703,821
Tobacco--0.1%
British American Tobacco Malaysia Bhd 1,100,000 12,670,713
Transportation Infrastructure--0.0%
PLUS Expressways Bhd 3,859,800 2,960,476
Wireless Telecommunication
Services--0.1%
Maxis Communications Bhd 4,500,000 10,863,567
Total Common Stocks in Malaysia 77,029,658
Mexico--0.3%
Beverages--0.1%
Fomento Economico Mexicano, SA
de CV (e) 200,000 18,576,000
Food Products--0.0%
Grupo Industrial Maseca SA de CV 'B' 5,842,600 3,683,573
Shares
Country Industry Common Stocks Held Value
Mexico (concluded)
Media--0.2%
Grupo Televisa, SA (e) 1,400,000 $ 29,680,000
Total Common Stocks in Mexico 51,939,573
Netherlands--0.4%
Diversified Financial Services--0.4%
ING Groep NV CVA 1,269,276 51,578,777
Food & Staples Retailing--0.0%
Koninklijke Ahold NV (b) 161,858 1,335,445
Food Products--0.0%
Koninklijke Wessanen NV CVA 375,000 6,055,777
Total Common Stocks in the Netherlands 58,969,999
New Zealand--0.1%
Diversified Financial Services--0.0%
Guinness Peat Group Plc 3,296,593 5,659,567
Diversified Telecommunication
Services--0.1%
Telecom Corp. of New Zealand Ltd. 2,000,000 7,286,831
Electric Utilities--0.0%
Contact Energy Ltd. 1,115,000 5,643,416
Total Common Stocks in New Zealand 18,589,814
Norway--0.2%
Oil, Gas & Consumable Fuels--0.2%
Statoil ASA 915,775 30,093,456
Total Common Stocks in Norway 30,093,456
Peru--0.0%
Metals & Mining--0.0%
Cia de Minas Buenaventura SA (e) 150,000 4,558,500
Total Common Stocks in Peru 4,558,500
Singapore--1.4%
Commercial Banks--0.1%
Oversea-Chinese Banking Corp. 3,000,000 12,898,331
Diversified Telecommunication
Services--0.2%
Singapore Telecommunications Ltd. (b) 19,846,600 34,131,735
Health Care Providers & Services--0.1%
Parkway Holdings Ltd. 8,500,000 14,026,935
Industrial Conglomerates--0.5%
Fraser and Neave Ltd. 1,550,000 21,658,447
Keppel Corp. Ltd. 5,000,000 48,368,741
---------------
70,027,188
Oil, Gas & Consumable Fuels--0.0%
Pearl Energy Ltd. (b) 2,225,400 2,743,759
Real Estate--0.3%
CapitaLand Ltd. 8,000,000 24,785,028
K-REIT Asia (b) 1,430,000 1,347,180
Keppel Land Ltd. 7,150,000 21,428,300
---------------
47,560,508
Transportation Infrastructure--0.1%
SembCorp Logistics Ltd. 9,000,000 10,185,888
Wireless Telecommunication
Services--0.1%
MobileOne Ltd. 12,000,000 16,312,595
Total Common Stocks in Singapore 207,886,939
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
South Africa--0.1%
Metals & Mining--0.1%
Gold Fields Ltd. (e) 500,000 $ 12,705,000
Oil, Gas & Consumable Fuels--0.0%
Sasol Ltd. 135,000 5,640,327
Paper & Forest Products--0.0%
Sappi Ltd. (e) 300,000 4,212,000
Total Common Stocks in South Africa 22,557,327
South Korea--2.2%
Chemicals--0.2%
Samsung Fine Chemicals Co., Ltd. 790,300 24,298,876
Commercial Banks--0.1%
Pusan Bank 800,000 12,298,558
Diversified Telecommunication
Services--0.3%
KT Corp. (d)(e) 2,200,000 51,194,000
Electric Utilities--0.2%
Korea Electric Power Corp. 700,000 31,096,268
Electrical Equipment--0.2%
LS Cable Ltd. 550,000 22,741,730
Food Products--0.3%
CJ Corp. 248,000 33,918,575
Nong Shim Co., Ltd. 23,100 6,453,403
---------------
40,371,978
Metals & Mining--0.4%
POSCO 131,330 36,619,794
POSCO (e) 400,000 28,188,000
---------------
64,807,794
Multiline Retail--0.0%
Lotte Shopping Co. (b)(e)(j) 171,000 3,571,557
Textiles, Apparel & Luxury
Goods--0.1%
Cheil Industries, Inc. 225,000 8,170,324
Tobacco--0.3%
KT&G Corp. 900,000 50,381,679
Wireless Telecommunication
Services--0.1%
SK Telecom Co., Ltd. 70,140 16,471,597
Total Common Stocks in South Korea 325,404,361
Spain--0.4%
Commercial Banks--0.3%
Banco Bilbao Vizcaya Argentaria SA 2,168,446 47,828,346
Diversified Telecommunication
Services--0.1%
Telefonica SA (e) 186,798 8,964,436
Transportation Infrastructure--0.0%
Cintra Concesiones de Infraestructuras
de Transporte SA 400,000 5,416,504
Total Common Stocks in Spain 62,209,286
Sweden--0.4%
Auto Components--0.0%
Autoliv, Inc. 8,600 475,580
Commercial Banks--0.2%
Svenska Handelsbanken Class A 955,850 27,371,751
Shares
Country Industry Common Stocks Held Value
Sweden (concluded)
Diversified Financial Services--0.2%
Investor AB 1,484,663 $ 28,946,285
Total Common Stocks in Sweden 56,793,616
Switzerland--0.9%
Capital Markets--0.5%
Credit Suisse Group 1,136,180 71,162,550
Food Products--0.2%
Nestle SA Registered Shares 89,800 27,310,030
Insurance--0.2%
Swiss Reinsurance Registered Shares 148,183 10,782,361
Zurich Financial Services AG 106,919 25,939,946
---------------
36,722,307
Total Common Stocks in Switzerland 135,194,887
Taiwan--0.6%
Building Products--0.0%
Taiwan Glass Industrial Corp. 2,200,000 1,799,662
Commercial Banks--0.1%
SinoPac Financial Holdings Co., Ltd. 11,505,560 6,382,762
Taishin Financial Holdings Co., Ltd. 9,335,042 6,144,170
---------------
12,526,932
Diversified Financial Services--0.0%
Fubon Financial Holding Co. Ltd. 3,751,000 3,632,731
Diversified Telecommunication
Services--0.3%
Chunghwa Telecom Co Ltd. 2,250,000 4,322,855
Chunghwa Telecom Co. Ltd. (e) 2,000,000 41,200,000
---------------
45,522,855
Electronic Equipment
& Instruments--0.2%
Delta Electronics, Inc. 6,311,428 19,662,632
Insurance--0.0%
Cathay Financial Holding Co., Ltd. 1,645,000 3,686,376
Machinery--0.0%
Yungtay Engineering Co., Ltd. 6,000,000 3,488,372
Total Common Stocks in Taiwan 90,319,560
Thailand--1.0%
Commercial Banks--0.3%
Kasikornbank PCL 1,000,000 1,809,955
Siam Commercial Bank PCL Foreign
Shares 21,000,000 36,332,180
---------------
38,142,135
Construction Materials--0.2%
Siam Cement PCL Foreign Shares 3,000,000 20,282,140
Siam City Cement PCL Foreign Shares 641,700 4,611,632
---------------
24,893,772
Electronic Equipment
& Instruments--0.1%
Hana Microelectronics PCL 10,500,000 8,035,001
Food Products--0.0%
Thai Union Frozen Products PCL Foreign
Shares 3,300,000 2,722,917
Household Durables--0.1%
Land and Houses PCL Foreign Shares 38,000,000 8,900,719
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
Thailand (concluded)
Oil, Gas & Consumable Fuels--0.3%
PTT Exploration & Production PCL 6,250,000 $ 20,960,873
PTT PCL 4,500,000 30,902,316
---------------
51,863,189
Transportation Infrastructure--0.0%
Bangkok Expressway PCL Foreign Shares 4,950,000 3,003,993
Wireless Telecommunication
Services--0.0%
Advanced Info Service PCL Foreign Shares 2,000,000 4,737,823
Total Common Stocks in Thailand 142,299,549
United Kingdom--3.6%
Aerospace & Defense--0.2%
BAE Systems Plc 3,218,551 24,424,623
Beverages--0.1%
Diageo Plc (e) 200,600 13,289,750
Commercial Banks--1.0%
Barclays Plc 3,924,466 48,863,225
HBOS Plc 2,921,856 51,117,609
Royal Bank of Scotland Group Plc 1,682,221 54,763,302
---------------
154,744,136
Food Products--0.2%
Cadbury Schweppes Plc (e) 639,900 25,570,404
RHM Plc 756,900 3,728,368
---------------
29,298,772
Insurance--0.5%
Aviva Plc 2,547,906 37,095,985
Prudential Plc 2,621,519 30,662,852
---------------
67,758,837
Oil, Gas & Consumable Fuels--0.6%
BP Plc 2,833,379 34,840,426
Royal Dutch Shell Plc (e) 200,000 13,626,000
Royal Dutch Shell Plc Class B 1,177,960 41,987,414
---------------
90,453,840
Pharmaceuticals--0.0%
GlaxoSmithKline Plc 233,106 6,592,863
Specialty Retail--0.1%
Kesa Electricals Plc 2,909,831 16,766,330
Transportation Infrastructure--0.2%
BAA Plc 1,686,645 25,982,108
Wireless Telecommunication
Services--0.7%
Vodafone Group Plc 32,073,003 75,495,381
Vodafone Group Plc (e) 1,347,200 31,928,640
---------------
107,424,021
Total Common Stocks in the United Kingdom 536,735,280
United States--25.5%
Aerospace & Defense--0.1%
General Dynamics Corp. 94,000 6,168,280
Raytheon Co. 125,000 5,533,750
---------------
11,702,030
Air Freight & Logistics--0.1%
FedEx Corp. 110,000 12,664,300
Airlines--0.0%
AMR Corp. (b) 17,400 428,736
Shares
Country Industry Common Stocks Held Value
United States (continued)
Beverages--0.3%
The Coca-Cola Co. 400,000 $ 16,784,000
Constellation Brands, Inc. Class A (b)(d) 300,000 7,410,000
Molson Coors Brewing Co. Class B 188,400 13,915,224
---------------
38,109,224
Biotechnology--0.1%
Amgen, Inc. (b) 56,200 3,804,740
Senomyx, Inc. (b) 270,000 3,863,700
---------------
7,668,440
Capital Markets--0.6%
The Bank of New York Co., Inc. 451,900 15,884,285
The Bear Stearns Cos., Inc. 3,400 484,534
Goldman Sachs Group, Inc. 3,000 480,870
Knight Capital Group, Inc. Class A (b) 1,696,700 28,436,692
Lehman Brothers Holdings, Inc. 25,000 3,778,750
Mellon Financial Corp. 36,100 1,358,443
Morgan Stanley 550,000 35,365,000
---------------
85,788,574
Chemicals--0.1%
E.I. du Pont de Nemours & Co. 300,000 13,230,000
Lyondell Chemical Co. 250,000 6,025,000
Tronox, Inc. Class B 90,738 1,569,767
---------------
20,824,767
Commercial Banks--0.7%
Bank of America Corp. 800,000 39,936,000
Fifth Third Bancorp (d) 400,000 16,168,000
Santander BanCorp 63,090 1,469,997
Wachovia Corp. (d) 229,600 13,741,560
Wells Fargo & Co. 414,000 28,437,660
---------------
99,753,217
Communications Equipment--1.1%
3Com Corp. (b)(d) 3,374,300 18,187,477
Cisco Systems, Inc. (b) 4,211,900 88,239,305
Comverse Technology, Inc. (b)(d) 150,000 3,397,500
Extreme Networks Inc. (b) 700,000 3,178,000
JDS Uniphase Corp. (b) 2,500,000 8,725,000
Lucent Technologies, Inc. (b) 800,000 2,232,000
Motorola, Inc. 1,468,200 31,346,070
Tellabs, Inc. (b) 250,000 3,962,500
---------------
159,267,852
Computers & Peripherals--0.9%
Adaptec, Inc. (b) 1,600,000 8,848,000
Brocade Communications Systems,
Inc. (b)(d) 1,250,000 7,700,000
Hewlett-Packard Co. 600,000 19,482,000
International Business Machines Corp. 635,000 52,285,900
Lexmark International, Inc. Class A (b) 427,500 20,819,250
Seagate Technology 18,000 478,080
Sun Microsystems, Inc. (b) 5,000,000 25,000,000
Western Digital Corp. (b) 23,400 492,336
---------------
135,105,566
Construction & Engineering--1.4%
Chicago Bridge & Iron Co. NV 297,500 7,131,075
Foster Wheeler Ltd. (b)(r) 2,656,575 118,376,982
McDermott International, Inc. (b) 1,430,200 86,956,160
Quanta Services, Inc. (b) 615,400 9,981,788
---------------
222,446,005
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
United States (continued)
Containers & Packaging--0.1%
Crown Holdings, Inc. (b) 600,000 $ 9,618,000
Smurfit-Stone Container Corp. (b) 500,000 6,475,000
---------------
16,093,000
Diversified Consumer Services--0.3%
Career Education Corp. (b) 690,000 25,440,300
Corinthian Colleges, Inc. (b) 1,481,200 22,055,068
---------------
47,495,368
Diversified Financial Services--0.6%
CIT Group, Inc. 9,000 486,090
Citigroup, Inc. 1,522,558 76,051,772
JPMorgan Chase & Co. 200,000 9,076,000
Leucadia National Corp. 8,000 486,000
---------------
86,099,862
Diversified Telecommunication
Services--0.4%
AT&T, Inc. 912,100 23,906,141
BellSouth Corp. 300,100 10,137,378
Cincinnati Bell, Inc. (b) 399,400 1,677,480
General Communication Inc. Class A (b) 715,000 8,580,000
Qwest Communications International
Inc. (b) 70,600 473,726
Verizon Communications, Inc. 329,000 10,866,870
---------------
55,641,595
Electric Utilities--0.2%
Mirant Corp. (b) 425,300 10,445,368
PPL Corp. 601,600 17,470,464
---------------
27,915,832
Electronic Equipment
& Instruments--0.1%
Sanmina-SCI Corp. (b)(d) 1,450,000 7,525,500
Solectron Corp. (b) 1,172,205 4,688,820
---------------
12,214,320
Energy Equipment & Services--1.4%
Baker Hughes, Inc. (d) 67,900 5,488,357
ENSCO International, Inc. 298,300 15,956,067
GlobalSantaFe Corp. 625,000 38,256,250
Halliburton Co. 200,000 15,630,000
Key Energy Services, Inc. (b) 599,100 10,238,619
Maverick Tube Corp. (b)(d) 228,400 12,429,528
National Oilwell Varco, Inc. (b)(d) 100,000 6,897,000
Noble Corp. 200,000 15,788,000
Rowan Cos., Inc. 360,600 15,985,398
Schlumberger Ltd. 550,000 38,027,000
Tidewater, Inc. 100,000 5,824,000
Todco Class A (b) 150,000 6,880,500
Transocean, Inc. (b) 112,200 9,096,054
Weatherford International Ltd. (b) 200,000 10,586,000
---------------
207,082,773
Food & Staples Retailing--0.2%
Albertson's, Inc. 19,100 483,803
CVS Corp. 400,000 11,888,000
Wal-Mart Stores, Inc. 200,000 9,006,000
Walgreen Co. 200,000 8,386,000
---------------
29,763,803
Shares
Country Industry Common Stocks Held Value
United States (continued)
Food Products--0.2%
Archer-Daniels-Midland Co. 13,200 $ 479,688
ConAgra Foods, Inc. 575,000 13,041,000
Corn Products International, Inc. 420,000 11,760,000
Ralcorp Holdings, Inc. (b)(d) 190,000 7,083,200
Sara Lee Corp. 275,000 4,914,250
---------------
37,278,138
Health Care Equipment
& Supplies--0.2%
Bausch & Lomb, Inc. 215,300 10,538,935
Baxter International, Inc. 250,000 9,425,000
Boston Scientific Corp. (b) 200,000 4,648,000
Waters Corp. (b) 150,000 6,798,000
---------------
31,409,935
Health Care Providers
& Services--0.8%
Aetna, Inc. 250,000 9,625,000
AmerisourceBergen Corp. 150,000 6,472,500
Cardinal Health, Inc. 6,500 437,775
HCA, Inc. 400,000 17,556,000
Health Management Associates, Inc.
Class A 100,000 2,071,000
HealthSouth Corp. (b) 800,000 3,664,000
Humana, Inc. (b) 250,000 11,295,000
Manor Care, Inc. 250,000 10,962,500
Medco Health Solutions, Inc. (b) 100,000 5,323,000
Tenet Healthcare Corp. (b)(d) 1,257,200 10,459,904
Triad Hospitals, Inc. (b)(d) 175,000 7,210,000
UnitedHealth Group, Inc. 249,800 12,425,052
WellPoint, Inc. (b) 200,000 14,200,000
---------------
111,701,731
Hotels, Restaurants & Leisure--0.4%
Darden Restaurants, Inc. 12,100 479,160
McDonald's Corp. 1,250,000 43,212,500
Panera Bread Co. Class A (b) 100,000 7,418,000
Starbucks Corp. (b) 13,100 488,237
Wendy's International, Inc. 148,400 9,168,152
---------------
60,766,049
Household Durables--0.0%
Harman International Industries, Inc. 4,500 395,955
Whirlpool Corp. 5,400 484,650
---------------
880,605
Household Products--0.0%
Procter & Gamble Co. 126,750 7,378,117
IT Services--0.1%
Accenture Ltd. Class A 16,500 479,655
Automatic Data Processing, Inc. 200,000 8,816,000
Ceridian Corp. (b) 19,100 462,793
Global Payments, Inc. 10,100 479,043
---------------
10,237,491
Independent Power Producers
& Energy Traders--0.1%
The AES Corp. (b) 600,000 10,182,000
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
United States (continued)
Industrial Conglomerates--1.1%
General Electric Co. 3,699,700 $ 127,972,623
Tyco International Ltd. 1,502,379 39,587,687
---------------
167,560,310
Insurance--2.2%
ACE Ltd. 584,200 32,446,468
The Allstate Corp. 350,000 19,771,500
American International Group, Inc. 1,500,000 97,875,000
Assurant, Inc. 219,800 10,587,766
Bristol West Holdings, Inc. 164,000 3,027,440
Endurance Specialty Holdings Ltd. 638,500 19,767,960
Hartford Financial Services Group, Inc. 68,700 6,315,591
IPC Holdings, Ltd. 336,000 8,961,120
Lincoln National Corp. 8,500 493,680
Marsh & McLennan Cos., Inc. 171,600 5,262,972
Platinum Underwriters Holdings Ltd. 668,400 18,427,788
Prudential Financial, Inc. 70,000 5,469,100
RenaissanceRe Holdings Ltd. 337,000 14,170,850
The St. Paul Travelers Cos., Inc. 769,700 33,889,891
W.R. Berkley Corp. 12,200 456,524
XL Capital Ltd. Class A 666,900 43,942,041
---------------
320,865,691
Leisure Equipment & Products--0.0%
Mattel, Inc. 400,000 6,472,000
Machinery--0.1%
Caterpillar, Inc. 6,500 492,310
Cummins, Inc. 4,600 480,700
Navistar International Corp. (b) 410,000 10,815,800
---------------
11,788,810
Media--0.5%
CBS Corp. Class B 250,004 6,367,602
Comcast Corp. Class A (b)(d) 843,400 26,103,230
Discovery Holding Co. (b) 65,000 968,500
Liberty Global, Inc. (b) 100,000 2,071,000
Liberty Global, Inc. Series C (b) 100,000 1,997,000
Liberty Media Corp. Class A (b) 650,000 5,427,500
The McGraw-Hill Cos., Inc. 8,500 473,110
NTL, Inc. (d) 500,000 13,740,000
Time Warner, Inc. 550,000 9,570,000
Tribune Co. 160,000 4,612,800
Viacom, Inc. Class B (b) 250,000 9,957,500
---------------
81,288,242
Metals & Mining--0.7%
AK Steel Holding Corp. (b) 250,000 3,727,500
Alcoa, Inc. 1,575,000 53,203,500
Allegheny Technologies, Inc. 7,400 513,116
Freeport-McMoRan Copper & Gold, Inc.
Class B 200,000 12,916,000
Inco Ltd. 300,000 16,941,000
Newmont Mining Corp. 200,000 11,672,000
Nucor Corp. 4,400 478,808
United States Steel Corp. (d) 65,000 4,452,500
---------------
103,904,424
Multi-Utilities--0.0%
Alliant Energy Corp. 14,900 476,204
Multiline Retail--0.0%
Nordstrom, Inc. 12,600 482,958
Shares
Country Industry Common Stocks Held Value
United States (continued)
Oil, Gas & Consumable Fuels--3.9%
Alon USA Energy, Inc. 79,600 $ 2,135,668
Alpha Natural Resources, Inc. (b) 309,700 7,776,567
Amerada Hess Corp. (b)(d) 88,600 12,693,722
Arch Coal, Inc. 185,000 17,573,150
Chevron Corp. 731,800 44,654,436
ConocoPhillips 750,000 50,175,000
Consol Energy, Inc. 76,200 6,489,192
Devon Energy Corp. 200,000 12,022,000
El Paso Corp. 5,043,600 65,112,876
Exxon Mobil Corp. 1,500,000 94,620,000
Foundation Coal Holdings, Inc. 400,000 20,280,000
International Coal Group, Inc. (b) 1,591,600 16,393,480
James River Coal Co. (b) 68,282 2,400,112
Kerr-McGee Corp. 776,100 77,501,346
Marathon Oil Corp. 494,900 39,275,264
Murphy Oil Corp. 300,000 15,054,000
Newfield Exploration Co. (b)(d) 172,000 7,671,200
Noble Energy, Inc. 172,000 7,736,560
Occidental Petroleum Corp. 298,800 30,698,712
Pogo Producing Co. 472,000 23,453,680
Rosetta Resources, Inc. (b)(j) 500,000 10,065,000
Stone Energy Corp. (b) 236,100 11,120,310
Williams Cos., Inc. 59,500 1,304,835
---------------
576,207,110
Paper & Forest Products--0.2%
Bowater, Inc. 450,000 12,271,500
International Paper Co. 599,900 21,806,365
---------------
34,077,865
Personal Products--0.1%
Avon Products, Inc. 350,000 11,413,500
Pharmaceuticals--1.7%
Abbott Laboratories 445,670 19,047,936
Andrx Corp. (b) 247,900 5,778,549
Bristol-Myers Squibb Co. 902,100 22,895,298
Eli Lilly & Co. 310,000 16,405,200
Johnson & Johnson 900,000 52,749,000
King Pharmaceuticals, Inc. (b) 39,900 693,861
Merck & Co., Inc. 908,200 31,260,244
Pfizer, Inc. 2,267,700 57,440,841
Schering-Plough Corp. 689,800 13,326,936
Valeant Pharmaceuticals International 683,000 12,225,700
Watson Pharmaceuticals, Inc. (b) 130,000 3,697,200
Wyeth 450,000 21,901,500
---------------
257,422,265
Real Estate--0.2%
Aames Investment Corp. 200,000 1,060,000
Friedman Billings Ramsey Group, Inc.
Class A (d) 2,250,000 24,322,500
ProLogis 59,655 2,995,874
Ventas, Inc. 146,830 4,796,936
---------------
33,175,310
Road & Rail--1.2%
CSX Corp. 1,279,000 87,598,710
Norfolk Southern Corp. 352,500 19,035,000
Union Pacific Corp. 774,900 70,678,629
---------------
177,312,339
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Common Stocks Held Value
United States (concluded)
Semiconductors & Semiconductor
Equipment--0.2%
Advanced Micro Devices, Inc. (b) 14,100 $ 456,135
Agere Systems, Inc. (b) 279,500 4,393,740
Cirrus Logic, Inc. (b) 359,200 3,394,440
Intel Corp. 921,000 18,401,580
Intersil Corp. Class A 16,500 488,565
Nvidia Corp. (b) 16,000 467,520
Photronics, Inc. (b) 300,000 5,391,000
---------------
32,992,980
Software--1.5%
Borland Software Corp. (b) 193,100 984,810
CA, Inc. (d) 2,503,589 63,491,017
Compuware Corp. (b) 300,000 2,304,000
Microsoft Corp. 3,942,800 95,218,620
Novell, Inc. (b) 4,458,400 36,648,048
Red Hat, Inc. (b) 17,400 511,386
Symantec Corp. (b) 475,000 7,780,500
TIBCO Software, Inc. (b) 1,095,000 9,438,900
---------------
216,377,281
Specialty Retail--0.2%
Circuit City Stores, Inc. 20,000 575,000
Home Depot, Inc. 250,000 9,982,500
Office Depot, Inc. (b) 13,000 527,540
Pier 1 Imports, Inc. (d) 620,000 7,483,400
RadioShack Corp. 220,000 3,740,000
Staples, Inc. 18,500 488,585
---------------
22,797,025
Textiles, Apparel & Luxury
Goods--0.0%
Polo Ralph Lauren Corp. 8,000 485,760
Unifi, Inc. (b) 2,012,000 6,780,440
---------------
7,266,200
Thrifts & Mortgage Finance--0.2%
Fannie Mae 300,000 15,180,000
Washington Mutual, Inc. 300,000 13,518,000
---------------
28,698,000
Tobacco--0.3%
Alliance One International, Inc. 1,713,100 7,503,378
Altria Group, Inc. 424,800 31,078,368
Reynolds American, Inc. 4,500 493,425
---------------
39,075,171
Trading Companies
& Distributors--0.0%
MSC Industrial Direct Co. Class A 9,200 477,112
Transportation Infrastructure--0.3%
Macquarie Infrastructure Co. Trust (r) 1,452,900 42,424,680
Wireless Telecommunication
Services--0.4%
Alltel Corp. (d) 450,000 28,966,500
Sprint Nextel Corp. 939,200 23,292,160
---------------
52,258,660
Total Common Stocks in the United States 3,770,713,467
Total Common Stocks
(Cost--$6,178,110,677)--60.3% 8,935,391,407
Shares
Country Mutual Funds Held Value
Vietnam--0.0%
Vietnam Enterprise Investments Ltd.
Redeemable Shares (b) 1,272,540 $ 3,435,858
Total Mutual Funds (Cost--$1,500,000)--0.0% 3,435,858
Preferred
Industry Stocks
Australia--0.2%
Commercial Banks--0.2%
National Australia Bank Ltd., 7.875% (c) 492,000 23,050,200
Total Preferred Stocks in Australia 23,050,200
United States--0.4%
Diversified Telecommunication
Services--0.0%
McLeodUSA, Inc. Series A, 2.50% (c) 104,238 208
Insurance--0.1%
IPC Holdings, Ltd., 7.25% (c) 73,300 1,896,638
MetLife, Inc. Series B, 6.375% (c) 372,100 10,426,242
XL Capital Ltd., 6.50% (c) 340,000 7,500,400
---------------
19,823,280
Oil, Gas & Consumable Fuels--0.1%
El Paso Corp., 4.99% (c) 10,650 12,222,206
Thrifts & Mortgage Finance--0.2%
Fannie Mae Series 2004-1, 5.375% (c) 385 36,658,499
Total Preferred Stocks in the United States 68,704,193
Total Preferred Stocks
(Cost--$83,716,259)--0.6% 91,754,393
Warrants (k)
Russia--0.0%
Diversified Telecommunication
Services--0.0%
Metromedia International Group, Inc.
(expires 6/01/2006) 47,330 47
Total Warrants in Russia 47
United Kingdom--0.0%
Capital Markets--0.0%
Deutsche Bank AG (expires 9/15/2006) 4,959,499 1,216,978
Total Warrants in the United Kingdom 1,216,978
United States--0.0%
Diversified Telecommunication
Services--0.0%
AboveNet, Inc. (expires 9/08/2008) 10,894 98,046
AboveNet, Inc. (expires 9/08/2010) 12,816 115,344
McLeodUSA, Inc. (expires 4/16/2007) 230,981 231
Total Warrants in the United States 213,621
Total Warrants (Cost--$5,937,437)--0.0% 1,430,646
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Country Industry Rights Held Value
China--0.0%
Insurance--0.0%
Hutchinson China Meditech (g) 170 $ 0
Total Rights in China 0
Switzerland--0.0%
Insurance--0.0%
Swiss Reinsurance (g) 148,183 0
Total Rights in Switzerland 0
United States--0.0%
Commercial Services & Supplies--0.0%
Information Resources, Inc. (i) 826,400 553,688
Total Rights in the United States 553,688
Total Rights (Cost--$1,388,352)--0.0% 553,688
Fixed Income Securities
Face
Corporate Bonds Amount
Brazil--0.1%
Commercial Banks--0.0%
Banco Nacional de Desenvolvimento
Economico e Social, 5.727%
due 6/16/2008 (a) USD 5,500,000 5,424,375
Food Products--0.1%
Cosan SA Industria e Comercio,
9% due 11/01/2009 (j) 11,000,000 11,715,000
Total Corporate Bonds in Brazil 17,139,375
Canada--0.1%
Metals & Mining--0.0%
Bema Gold Corp., 3.25%
due 2/25/2011 (c) 1,360,000 1,773,984
Wireless Telecommunication
Services--0.1%
Rogers Wireless Communications,
Inc.:
8.035% due 12/15/2010 (a) 11,600,000 11,948,000
7.625% due 12/15/2011 CAD 6,250,000 5,940,163
---------------
17,888,163
Total Corporate Bonds in Canada 19,662,147
Chile--0.3%
Electric Utilities--0.3%
Empresa Electrica del Norte
Grande SA, 5%
due 11/05/2017 USD 49,287,690 45,344,675
Total Corporate Bonds in Chile 45,344,675
China--0.1%
Industrial Conglomerates--0.1%
Beijing Enterprises Investment
Ltd., 0% due 12/21/2010 (c)(l) 12,910,000 15,266,075
Total Corporate Bonds in China 15,266,075
Face
Country Industry Corporate Bonds Amount Value
Europe--0.8%
Commercial Banks--0.8%
European Investment Bank:
4% due 1/15/2007 EUR 30,700,000 $ 38,864,482
0% due 5/01/2008 (l) BRL 27,500,000 9,916,937
0% due 9/12/2008 (j)(l) 104,363,970 35,754,036
0% due 9/21/2010 (j)(l) 127,600,000 33,399,319
Total Corporate Bonds in Europe 117,934,774
France--0.9%
Commercial Banks--0.9%
ERAP:
2.875% due 7/12/2006 EUR 39,150,000 49,312,272
3.375% due 4/25/2008 64,650,000 81,338,702
---------------
130,650,974
Software--0.0%
Infogrames Entertainment SA
Series WW, 4% due 4/01/2009 (c) 1,505,000 768,909
Total Corporate Bonds in France 131,419,883
Germany--1.7%
Commercial Banks--1.7%
KfW--Kreditanstalt fuer
Wiederaufbau:
4.125% due 6/07/2006 GBP 34,250,000 62,215,707
4.80% due 10/27/2006 7,700,000 13,995,928
3.125% due 11/15/2006 EUR 39,150,000 49,282,190
5.375% due 12/07/2007 GBP 11,550,000 21,195,938
4.50% due 12/07/2008 13,050,000 23,518,962
4.25% due 7/04/2014 EUR 38,750,000 49,555,991
Norddeutsche Landesbank
Girozentrale, 0.45%
due 1/19/2009 JPY 3,350,000,000 29,017,747
Total Corporate Bonds in Germany 248,782,463
Hong Kong--0.2%
Industrial Conglomerates--0.1%
Hutchison Whampoa International Ltd.,
5.45% due 11/24/2010 USD 15,000,000 14,791,995
Real Estate--0.1%
Hongkong Land CB 2005 Ltd.,
2.75% due 12/21/2012 (c) 7,500,000 8,578,125
Total Corporate Bonds in Hong Kong 23,370,120
India--0.7%
Automobiles--0.4%
Tata Motors Ltd. (c):
1% due 7/31/2008 (j) 8,100,000 29,797,875
Series 2, 1% due 4/27/2011 13,690,000 16,564,900
---------------
46,362,775
Media--0.2%
Zee Telefilms Ltd, 0.50%
due 4/29/2009 (c) 27,770,000 32,490,900
Metals & Mining--0.0%
Gujarat NRE Coke Ltd., 0%
due 4/12/2011 (c)(l) 5,100,000 4,985,250
Thrifts & Mortgage Finance--0.1%
Housing Development Finance Corp.,
0% due 9/27/2010 (c)(l) 11,100,000 12,315,128
Total Corporate Bonds in India 96,154,053
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Face
Country Industry Corporate Bonds Amount Value
Japan--0.3%
Commercial Banks--0.3%
The Bank of Kyoto Ltd. Series 1,
1.90% due 9/30/2009 (c) JPY 1,783,000,000 $ 32,521,483
The Mie Bank Ltd., 1%
due 10/31/2011 (c) 379,000,000 4,337,592
---------------
36,859,075
Insurance--0.0%
ASIF III Jersey Ltd., 0.95%
due 7/15/2009 735,000,000 6,376,234
Total Corporate Bonds in Japan 43,235,309
Malaysia--0.3%
Diversified Financial Services--0.2%
Feringghi Capital Ltd., 0%
due 12/22/2009 (c)(l) USD 15,900,000 16,416,750
Johor Corp., 1% due 7/31/2009 MYR 38,600,000 11,821,217
---------------
28,237,967
Electric Utilities--0.0%
TNB Capital (L) Ltd., 2.625%
due 11/20/2007 (c) USD 4,500,000 5,011,875
Food Products--0.0%
IOI Investment Bhd, 0%
due 9/18/2009 (c)(l) 2,700,000 3,574,373
Multi-Utilities--0.1%
YTL Power Finance Cayman Ltd.,
0% due 5/09/2010 (c)(l) 7,300,000 7,774,500
Total Corporate Bonds in Malaysia 44,598,715
Mexico--0.1%
Household Durables--0.1%
Vitro Envases Norteamerica SA de CV:
10.75% due 7/23/2011 2,500,000 2,643,750
10.75% due 7/23/2011 (j) 10,920,000 11,520,600
Total Corporate Bonds in Mexico 14,164,350
Netherlands--0.4%
Commercial Banks--0.2%
Bank Nederlandse Gemeenten,
4.625% due 12/07/2006 GBP 17,000,000 30,856,903
Semiconductors & Semiconductor
Equipment--0.2%
ASM International NV (c):
4.25% due 12/06/2011 USD 1,500,000 1,600,026
4.25% due 12/06/2011 (j) 4,235,000 4,510,275
Infineon Technologies Holding
BV, 4.25% due 2/06/2007 (c) EUR 22,850,000 28,872,277
---------------
34,982,578
Total Corporate Bonds in the Netherlands 65,839,481
South Korea--0.1%
Wireless Telecommunication
Services--0.1%
LG Telecom Ltd.:
8.25% due 7/15/2009 USD 250,000 265,921
8.25% due 7/15/2009 (j) 15,750,000 16,751,574
Total Corporate Bonds in South Korea 17,017,495
Face
Country Industry Corporate Bonds Amount Value
Sweden--0.2%
Diversified Financial Services--0.2%
Svensk Exportkredit AB, 10.50%
due 9/29/2015 TRY 31,600,790 $ 24,280,698
Total Corporate Bonds in Sweden 24,280,698
Taiwan--0.1%
Construction Materials--0.1%
Taiwan Cement Corp., 0%
due 3/03/2009 (c)(l) USD 15,850,000 20,700,972
Total Corporate Bonds in Taiwan 20,700,972
United Kingdom--0.2%
Commercial Banks--0.1%
International Bank for Reconstruction
& Development, 7.125%
due 7/30/2007 GBP 3,850,000 7,209,310
Diversified Telecommunication
Services--0.1%
Colt Telecom Group Plc, 2%
due 4/03/2007 (c) EUR 11,575,000 18,444,298
Total Corporate Bonds in the United Kingdom 25,653,608
United States--2.2%
Aerospace & Defense--0.0%
GenCorp, Inc., 5.75%
due 4/15/2007 (c) USD 3,700,000 4,107,000
Airlines--0.0%
Northwest Airlines, Inc.
Series 1999-3-B, 9.485%
due 10/01/2016 (o) 4,941,985 914,267
Biotechnology--0.2%
Abgenix, Inc. (c):
3.50% due 3/15/2007 12,765,000 12,653,306
1.75% due 12/15/2011 440,000 810,920
1.75% due 12/15/2011 (j) 5,000,000 9,215,000
Cell Genesys, Inc., 3.125%
due 11/01/2011 (c) 2,170,000 1,934,013
Nabi Biopharmaceuticals,
2.875% due 4/15/2025 (c) 3,520,000 3,062,400
---------------
27,675,639
Capital Markets--0.3%
UBS AG, Jersey Branch, 0%
due 12/01/2010 (l) 43,500,000 43,500,000
Communications Equipment--0.0%
Lucent Technologies, Inc., 8%
due 8/01/2031 (c) 5,790,000 5,833,425
Construction & Engineering--0.3%
Foster Wheeler LLC Series A,
10.359% due 9/15/2011 (r) 19,056,750 20,867,141
J Ray McDermott SA,11%
due 12/15/2013 (j) 14,765,000 17,145,856
---------------
38,012,997
Consumer Finance--0.0%
HSBC Finance Corp., 6.40%
due 6/17/2008 170,000 173,424
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Face
Country Industry Corporate Bonds Amount Value
United States (continued)
Containers & Packaging--0.0%
Crown Cork & Seal Co., Inc.,
7.50% due 12/15/2096 USD 5,904,000 $ 4,856,040
Diversified Financial
Services--0.1%
American Honda Finance Corp.,
3.85% due 11/06/2008 120,000 115,571
General Electric Capital Corp.,
1.40% due 11/02/2006 JPY 1,500,000,000 13,215,473
Triad Acquisition Corp. Series B,
11.125% due 5/01/2013 USD 3,805,000 3,766,950
---------------
17,097,994
Health Care Providers & Services--0.1%
Tenet Healthcare Corp., 9.25%
due 2/01/2015 (j) 10,000,000 10,200,000
Hotels, Restaurants & Leisure--0.1%
Uno Restaurant Corp.,10%
due 2/15/2011 (j) 14,440,000 11,552,000
Independent Power Producers
& Energy Traders--0.4%
The AES Corp., 8.375%
due 3/01/2011 GBP 3,393,000 6,259,806
Calpine Corp., 8.75%
due 7/15/2013 (j)(o) USD 7,230,000 6,615,450
Calpine Generating Co. LLC (a):
8.773% due 4/01/2009 28,300,000 29,573,500
10.773% due 4/01/2010 15,500,000 16,546,250
---------------
58,995,006
Insurance--0.0%
AIG SunAmerica Global Financing VII,
5.85% due 8/01/2008 170,000 171,072
Fortis Insurance NV, 7.75%
due 1/26/2008 (c)(j) 4,945,000 6,465,588
---------------
6,636,660
Oil, Gas & Consumable Fuels--0.1%
McMoRan Exploration Co. (c):
5.25% due 10/06/2011 7,695,000 9,041,625
5.25% due 10/06/2011 (j) 6,425,000 7,549,375
---------------
16,591,000
Paper & Forest Products--0.1%
Mandra Forestry,12%
due 5/15/2013 (j)(q) 22,750,000 19,565,000
Semiconductors & Semiconductor
Equipment--0.2%
Conexant Systems, Inc., 4%
due 2/01/2007 (c)(d) 22,400,000 22,064,000
LSI Logic Corp., 4% due 11/01/2006 (c) 9,050,000 8,970,813
---------------
31,034,813
Specialty Retail--0.0%
General Nutrition Centers, Inc.,
8.625% due 1/15/2011 1,890,000 1,937,250
Face
Country Industry Corporate Bonds Amount Value
United States (concluded)
U.S. Government Agency--0.2%
Fannie Mae, 2.125%
due 10/09/2007 USD 2,500,000,000 $ 22,380,495
Wireless Telecommunication
Services--0.1%
Nextel Communications, Inc.,
5.25% due 1/15/2010 (c) 14,325,000 14,128,229
Total Corporate Bonds in the United States 335,191,239
Total Corporate Bonds
(Cost--$1,199,342,453)--8.8% 1,305,755,432
Floating Rate Loan Interests (p)
Mexico--0.0%
Household Durables--0.0%
Vitro Envases Norteamerica SA
de CV Term Loan, 10.08%
due 2/23/2010 USD 6,583,000 6,632,373
Total Floating Rate Loan Interests in Mexico 6,632,373
United States--0.2%
Containers & Packaging--0.2%
Anchor Glass Container Corp. Debtor
In Possession Term Loan, 11.917%
due 9/30/2006 22,764,000 23,219,280
Textiles, Apparel & Luxury Goods--0.0%
Galey & Lord, Inc. Term Loan,10.17%
due 7/31/2009 (o) 7,995,080 239,852
Total Floating Rate Loan Interests in the
United States 23,459,132
Total Floating Rate Loan Interests
(Cost--$34,554,960)--0.2% 30,091,505
Foreign Government Obligations
Canada--0.2%
Canadian Government Bond:
4.25% due 9/01/2008 CAD 350,000 312,787
4% due 9/01/2010 38,600,000 34,016,777
5.25% due 6/01/2013 521,000 487,445
Series WL43, 5.75%
due 6/01/2029 175,000 182,282
Total Foreign Government Obligations in Canada 34,999,291
France--0.8%
Caisse d'Amortissement de la
Dette Sociale, 4%
due 10/25/2014 EUR 23,500,000 29,502,687
Unedic, 3.50% due 9/18/2008 64,650,000 81,324,369
Total Foreign Government Obligations in France 110,827,056
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Face
Country Foreign Government Obligations Amount Value
Germany--0.5%
Federal State of North Rhine
Westphalia Series 387, 4.25%
due 2/16/2007 EUR 51,000,000 $ 64,740,583
Total Foreign Government Obligations in Germany 64,740,583
Hong Kong--0.3%
Hong Kong Government Bond,
4.23% due 3/21/2011 HKD 327,000,000 41,542,810
Total Foreign Government Obligations in Hong Kong 41,542,810
Iceland--0.1%
Iceland Rikisbref, 7.25%
due 5/17/2013 ISK 1,316,000,000 16,145,062
Total Foreign Government Obligations in Iceland 16,145,062
Italy--0.1%
Italy Government International
Bond, 0.375%
due 10/10/2006 JPY 2,075,000,000 18,194,934
Total Foreign Government Obligations in Italy 18,194,934
Malaysia--0.5%
Malaysia Government Bond:
3.756% due 4/28/2011 MYR 109,500,000 29,621,978
Series 386X, 8.60%
due 12/01/2007 161,250,000 47,809,680
Total Foreign Government Obligations in Malaysia 77,431,658
Netherlands--0.2%
Netherlands Government Bond,
3.75% due 7/15/2014 EUR 24,000,000 29,855,901
Total Foreign Government Obligations
in the Netherlands 29,855,901
New Zealand--0.1%
New Zealand Government Bond
Series 216, 4.50%
due 2/14/2016 NZD 21,250,000 18,283,215
Total Foreign Government Obligations in
New Zealand 18,283,215
Poland--0.3%
Poland Government Bond, 3%
due 8/24/2016 PLN 123,500,000 40,983,847
Total Foreign Government Obligations in Poland 40,983,847
Sweden--0.3%
Sweden Government Bond
Series 3101, 4%
due 12/01/2008 SEK 275,750,000 46,220,924
Total Foreign Government Obligations in Sweden 46,220,924
United Kingdom--0.0%
United Kingdom Gilt:
7.25% due 12/07/2007 GBP 260,000 491,730
8% due 6/07/2021 85,000 211,294
Total Foreign Government Obligations
in the United Kingdom 703,024
Total Foreign Government Obligations
(Cost--$493,941,201)--3.4% 499,928,305
Face
Country U.S. Government Obligations Amount Value
United States--10.7%
U.S. Treasury Inflation Indexed Bonds:
0.875% due 4/15/2010 (d) USD 272,515,320 $ 259,166,430
2.375% due 4/15/2011 102,088,740 102,731,287
1.875% due 7/15/2015 (h) 455,031,236 440,083,706
2% due 1/15/2016 461,700,975 427,046,996
U.S. Treasury Notes:
3.625% due 4/30/2007 (d) 60,250,000 59,482,776
3.50% due 5/31/2007 (d) 60,500,000 59,594,859
4.375% due 12/31/2007 (d) 34,750,000 34,460,880
4.875% due 4/30/2008 34,000,000 34,002,652
4% due 6/15/2009 23,250,000 22,654,219
4.75% due 5/15/2014 (d) 11,150,000 10,942,242
4.25% due 8/15/2014 (d) 24,750,000 23,439,017
4.25% due 11/15/2014 (d) 118,225,000 111,754,900
Total U.S. Government Obligations
(Cost--$1,612,270,451)--10.7% 1,585,359,964
Structured Notes
Brazil--1.0%
JPMorgan Chase Bank (j):
(NTN-B Linked Notes), 6%
due 8/15/2010 BRL 283,523,928 119,888,763
(NTN-B Linked Notes), 6%
due 8/17/2010 59,366,894 25,103,431
Total Structured Notes in Brazil 144,992,194
United States--1.2%
The Goldman Sachs Group, Inc.:
(DAX Linked Notes), 0%
due 10/19/2007 USD 65,600,000 64,583,069
(TOPIX Linked Notes), 0%
due 2/16/2008 50,060,000 50,219,191
(TOPIX Linked Notes, Series B),
0% due 1/31/2007 51,935,000 58,551,779
Total Structured Notes in the United States 173,354,039
Total Structured Notes
(Cost--$310,774,855)--2.2% 318,346,233
Total Fixed Income Securities
(Cost--$3,650,883,920)--25.3% 3,739,481,439
Beneficial
Other Interests (f) Interest
United States--0.0%
Diversified Telecommunication
Services--0.0%
AboveNet, Inc. (Litigation Trust
Certificates) USD 19,750,000 0
Total Other Interests (Cost--$0)--0.0% 0
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Face Amount/
Country Short-Term Securities Beneficial Interest Value
Europe--3.4%
Time Deposits--3.4%
Euro Time Deposit:
2.57% due 5/05/2006 EUR 55,968,393 $ 70,500,702
2.58% due 5/12/2006 84,763,002 106,771,892
2.615% due 5/19/2006 67,971,743 85,620,748
2.63% due 5/26/2006 84,845,138 106,875,354
2.59% due 6/02/2006 64,222,706 80,898,266
2.635% due 6/09/2006 43,493,904 54,787,187
Total Short-Term Securities in Europe 505,454,149
Singapore--0.3%
Time Deposits--0.3%
Singapore Dollar Time Deposit,
3.23% due 5/12/2006 SGD 70,828,596 44,782,876
Total Short-Term Securities in Singapore 44,782,876
Switzerland--0.4%
Time Deposits--0.4%
Swiss Franc Time Deposit, 1.10%
due 5/05/2006 CHF 74,364,049 59,790,190
Total Short-Term Securities in Switzerland 59,790,190
United States--14.0%
Merrill Lynch Liquidity Series,
LLC Cash Sweep Series I,
4.75% (m)(s) USD 1,317,497,998 1,317,497,998
Merrill Lynch Liquidity Series,
LLC Money Market Series,
4.89% (m)(n)(s) 751,072,329 751,072,329
Total Short-Term Securities in the United States 2,068,570,327
Total Short-Term Securities
(Cost--$2,658,909,409)--18.1% 2,678,597,542
Number of
Options Purchased Contracts
Put Options Purchased
Schering-Plough Corp., expiring
May 2006 at USD 20 2,000 160,000
Total Options Purchased
(Premiums Paid--$234,240)--0.0% 160,000
Total Investments
(Cost--$12,580,680,294)--104.3% 15,450,804,973
Options Written
Call Options Written
3Com Corp., expiring January 2007
at USD 5 9,350 (981,750)
Andrx Corp., expiring January 2007
at USD 20 2,275 (1,092,000)
Arch Coal, Inc., expiring January 2007
at USD 75 1,850 (4,828,500)
Number of
Options Written Contracts Value
Call Options Written (continued)
Bausch & Lomb, Inc.:
expiring October 2006 at USD 45 669 $ (474,990)
expiring January 2007 at USD 50 1,484 (727,160)
CA, Inc., expiring January 2007 at USD 30 2,263 (135,780)
CBS Corp. Class B, expiring
January 2007 at USD 27.5 1,562 (187,440)
Career Education Corp.:
expiring January 2007 at USD 25 1,750 (2,380,000)
expiring January 2007 at USD 30 1,750 (1,680,000)
expiring January 2007 at USD 35 3,400 (2,074,000)
Chicago Bridge & Iron Co. NV, expiring
January 2007 at USD 25 1,352 (486,720)
Cirrus Logic, Inc., expiring January 2007
at USD 5 3,592 (1,724,160)
Cisco Systems, Inc.:
expiring January 2007 at USD 17.5 3,619 (1,592,360)
expiring January 2007 at USD 22.5 4,000 (540,000)
Corinthian Colleges, Inc., expiring
January 2007 at USD 12.5 14,812 (5,184,200)
Extreme Networks Inc., expiring
January 2007 at USD 5 7,000 (350,000)
Fannie Mae, expiring January 2007
at USD 50 1,000 (550,000)
Kerr-McGee Corp., expiring
January 2007 at USD 100 2,571 (3,033,780)
Knight Capital Group, Inc. Class A,
expiring January 2007 at USD 7.5 10,180 (9,772,800)
Lexmark International, Inc. Class A,
expiring January 2007 at USD 50 4,275 (2,137,500)
Mattel, Inc., expiring January 2007
at USD 15 4,000 (920,000)
McDermott International, Inc.:
expiring January 2007 at USD 22.5 739 (2,896,880)
expiring January 2007 at USD 35 2,000 (5,520,000)
expiring January 2007 at USD 40 2,000 (4,660,000)
expiring January 2007 at USD 55 1,050 (1,291,500)
McDonald's Corp., expiring
January 2007 at USD 35 12,500 (3,437,500)
Molson Coors Brewing Co. Class B,
expiring January 2007 at USD 60 904 (1,464,480)
Motorola, Inc., expiring January 2007
at USD 22.5 12,594 (2,392,860)
Murphy Oil Corp., expiring January 2007
at USD 50 1,500 (855,000)
Norfolk Southern Corp., expiring
January 2007 at USD 40 3,525 (5,534,250)
Novell, Inc.:
expiring January 2007 at USD 5 4,454 (1,603,440)
expiring January 2007 at USD 7.5 40,130 (6,019,500)
Panera Bread Co. Class A, expiring
August 2006 at USD 65 1,000 (1,160,000)
Pfizer, Inc., expiring January 2007 at USD 25 5,000 (900,000)
Pogo Producing Co., expiring January 2007
at USD 50 2,800 (1,512,000)
Quanta Services, Inc.:
expiring May 2006 at USD 12.5 1,000 (380,000)
expiring January 2007 at USD 10 2,224 (1,534,560)
expiring January 2007 at USD 12.5 2,930 (1,377,100)
Suncor Energy, Inc., expiring January 2007
at USD 50 3,000 (11,370,000)
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (continued) (in U.S. dollars)
Number of
Options Written Contracts Value
Call Options Written (continued)
TIBCO Software, Inc., expiring
January 2007 at USD 7.5 10,950 $ (2,025,750)
Tellabs, Inc., expiring January 2007
at USD 12.5 2,500 (1,100,000)
Tenet Healthcare Corp.:
expiring May 2006 at USD 7 4,072 (590,440)
expiring January 2007 at USD 7.5 5,000 (900,000)
Tyco International Ltd., expiring
January 2007 at USD 25 2,500 (800,000)
Valeant Pharmaceuticals International,
expiring January 2007 at USD 15 6,830 (2,732,000)
Number of
Options Written Contracts Value
Call Options Written (concluded)
Vodafone Group Plc, expiring
January 2007 at USD 20 3,472 $ (1,492,960)
Wendy's International, Inc., expiring
January 2007 at USD 45 1,484 (2,745,400)
Total Options Written
(Premiums Received--$60,647,466)--(0.7%) (107,148,760)
Total Investments, Net of Options Written,
(Cost--$12,520,032,828*)--103.6% 15,343,656,213
Liabilities in Excess of Other Assets--(3.6%) (530,383,163)
---------------
Net Assets--100.0% $14,813,273,050
===============
* The cost and unrealized appreciation (depreciation) of investments,
net of options written, as of April 30, 2006, as computed for federal
income tax purposes, were as follows:
Aggregate cost $ 12,542,355,537
==================
Gross unrealized appreciation $ 3,033,573,934
Gross unrealized depreciation (232,273,258)
------------------
Net unrealized appreciation $ 2,801,300,676
==================
(a) Floating rate note.
(b) Non-income producing security.
(c) Convertible security.
(d) Security, or a portion of security, is on loan.
(e) Depositary receipts.
(f) Other interests represent beneficial interest in liquidation trusts and
other reorganization entities and are non-income producing.
(g) The rights may be exercised until 5/08/2006.
(h) All or a portion of security held as collateral in connection with open
financial futures contracts.
(i) The rights entitle holders to potential cash distributions pending
litigation settlements.
(j) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(k) Warrants entitle the Fund to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
(l) Represents a zero coupon bond.
(m) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Interest
Affiliate Activity Income
Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I $(966,194,281) $32,698,165
Merrill Lynch Liquidity Series, LLC
Money Market Series $ 550,550,529 $ 318,597
(n) Security was purchased with the cash proceeds from securities loans.
(o) Non-income producing security; issuer filed for bankruptcy or is in
default of interest payments.
(p) Floating rate loan interests in which the Fund invests generally pay
interest at rates that are periodically redetermined by reference to
a base lending rate plus a premium. The base lending rates are generally
(i) the lending rate offered by one or more European banks, such as
LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by
one or more U.S. banks or (iii) the certificate of deposit rate.
(q) Issued with warrants.
(r) Investments in companies (whereby the Fund held 5% or more of the
companies outstanding securities) that are considered to be an
affiliate, for purposes of Section 2(a)(3) of the Investment Company
Act of 1940, were as follows:
Interest/
Net Purchase Realized Dividend
Affiliate Activity Cost Sales Cost Gains Income
Foster Wheeler Ltd. (692,304) $40,923,289 $11,835,297 $59,998,443 +++
Foster Wheeler LLC, 10.359% due 9/15/2011
(Series A) $(36,537,000) -- $37,286,724 $ 5,226,103 $2,595,236
Macquarie Infrastructure Co. Trust (17,800) -- $ 494,840 $ 36,668 $ 726,450
+++ Non-income producing security.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Schedule of Investments (concluded) (in U.S. dollars)
(s) Represents the current yield as of 4/30/2006.
o For Fund compliance purposes, the Fund's industry classifications refer
to 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 industry sub-classifications for
reporting ease. Industries are shown as a percent of net assets.
o Forward foreign exchange contracts purchased as of April 30, 2006
were as follows:
Unrealized
Foreign Currency Settlement Date Appreciation
HKD 53,415,318 May 2006 $ 202
-------------
Total Unrealized Appreciation on Forward Foreign Exchange
Contracts--Net (USD Commitment--$6,889,350) $ 202
=============
o Forward foreign exchange contracts sold as of April 30, 2006
were as follows:
Unrealized
Foreign Currency Settlement Date Depreciation
GBP 51,136,000 May 2006 $ (3,542,362)
GBP 28,581,000 June 2006 (885,943)
-------------
Total Unrealized Depreciation on Forward Foreign Exchange
Contracts--Net (USD Commitment--$140,511,750) $ (4,428,305)
=============
o Swaps outstanding as of April 30, 2006 were as follows:
Notional Unrealized
Amount Depreciation
Bought credit default protection on
United Mexican States and pay 1.12%
Broker, Credit Suisse First Boston
Expires May 2010 $ 6,450,000 $ (134,328)
o Financial futures contracts purchased as of April 30, 2006
were as follows:
Number of Expiration Unrealized
Contracts Issue Exchange Date Face Value Appreciation
145 Dax Index 25 Euro Euronext Paris June 2006 $ 26,612,635 $ 910,369
129 S&P 500 TSE 60 Index Montreal June 2006 15,502,419 313,047
-------------
Total Unrealized Appreciation--Net $ 1,223,416
=============
o Financial futures contracts sold as of April 30, 2006 were as follows:
Unrealized
Number of Expiration Appreciation
Contracts Issue Exchange Date Face Value (Depreciation)
564 DJ Euro Stoxx Euronext Paris June 2006 $ 26,631,134 $ (280,476)
230 FTSE 100 Index LIFFE June 2006 25,016,147 (167,799)
230 TSE 10-Year Japanese
Government Bond Tokyo June 2006 270,788,125 3,730,332
927 S&P 500 Index Chicago June 2006 302,696,067 (2,263,758)
634 Topix Index Tokyo June 2006 91,005,156 (4,705,527)
-------------
Total Unrealized Depreciation--Net $ (3,687,228)
=============
o Currency Abbreviations:
BRL Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
HKD Hong Kong Dollar
ISK Icelandic Krona
JPY Japanese Yen
MYR Malaysian Ringgit
NZD New Zealand Dollar
PLN Polish Zloty
SEK Swedish Krona
SGD Singapore Dollar
TRY Turkish Lira
USD U.S. Dollar
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Statement of Assets and Liabilities
As of April 30, 2006
Assets
Investments in unaffiliated securities, at value (including securities
loaned of $730,533,488) (identified cost--$10,408,101,806) $13,200,405,843
Investments in affiliated securities, at value (identified cost--$2,172,344,248) 2,250,239,130
Put options purchased, at value (premiums paid--$234,240) 160,000
Unrealized appreciation on forward foreign exchange contracts 202
Foreign cash (cost--$203,249,638) 204,413,301
Receivables:
Capital shares sold $ 46,959,603
Interest (including $241,397 from affiliates) 41,089,613
Securities sold 28,857,326
Dividends 25,713,604
Securities lending 51,789 142,671,935
---------------
Prepaid expenses and other assets 248,941
---------------
Total assets 15,798,139,352
---------------
Liabilities
Collateral on securities loaned, at value 751,072,329
Options written, at value (premiums received--$60,647,466) 107,148,760
Unrealized depreciation on forward foreign exchange contracts 4,428,305
Unrealized depreciation on swaps 134,328
Deferred foreign capital gain tax 6,025,407
Bank overdraft 3,435,739
Payables:
Securities purchased 74,022,163
Capital shares redeemed 19,134,069
Investment adviser 7,284,549
Distributor 5,608,186
Other affiliates 3,851,624
Variation margin 705,767
Swaps 31,907 110,638,265
---------------
Accrued expenses and other liabilities 1,983,169
---------------
Total liabilities 984,866,302
---------------
Net Assets
Net assets $14,813,273,050
===============
Net Assets Consist of
Class A Shares of Common Stock, $.10 par value, 900,000,000 shares authorized $ 29,310,740
Class B Shares of Common Stock, $.10 par value, 2,000,000,000 shares authorized 12,076,896
Class C Shares of Common Stock, $.10 par value, 200,000,000 shares authorized 22,377,925
Class I Shares of Common Stock, $.10 par value, 450,000,000 shares authorized 17,356,359
Class R Shares of Common Stock, $.10 par value, 2,000,000,000 shares authorized 613,449
Paid-in capital in excess of par 11,469,759,110
Undistributed investment income--net $ 14,184,221
Undistributed realized capital gains--net 434,664,585
Unrealized appreciation--net 2,812,929,765
---------------
Total accumulated earnings--net 3,261,778,571
---------------
Net Assets $14,813,273,050
===============
Net Asset Value
Class A--Based on net assets of $5,402,967,163 and 293,107,401 shares outstanding $ 18.43
===============
Class B--Based on net assets of $2,177,849,451 and 120,768,962 shares outstanding $ 18.03
===============
Class C--Based on net assets of $3,911,356,204 and 223,779,251 shares outstanding $ 17.48
===============
Class I--Based on net assets of $3,210,664,623 and 173,563,589 shares outstanding $ 18.50
===============
Class R--Based on net assets of $110,435,609 and 6,134,487 shares outstanding $ 18.00
===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Statement of Operations
For the Six Months Ended April 30, 2006
Investment Income
Interest (net of $157,742 foreign withholding tax and including $35,293,401
from affiliates) $ 100,408,254
Dividends (net of $5,001,227 foreign withholding tax and including $726,450
from affiliates) 85,345,058
Securities lending--net 318,597
Other 11,431,210
---------------
Total income 197,503,119
---------------
Expenses
Investment advisory fees $ 48,936,168
Account maintenance and distribution fees--Class C 16,308,967
Account maintenance and distribution fees--Class B 10,308,453
Account maintenance fees--Class A 6,051,998
Transfer agent fees--Class A 2,443,150
Transfer agent fees--Class C 1,923,637
Custodian fees 1,837,686
Transfer agent fees--Class I 1,413,096
Transfer agent fees--Class B 1,217,905
Accounting services 1,116,909
Account maintenance and distribution fees--Class R 207,056
Printing and shareholder reports 162,858
Registration fees 130,932
Professional fees 108,930
Pricing fees 58,648
Transfer agent fees--Class R 41,465
Directors' fees and expenses 26,344
Other 135,324
---------------
Total expenses before waiver 92,429,526
Waiver of expenses (5,802,647)
---------------
Total expenses after waiver 86,626,879
---------------
Investment income--net 110,876,240
---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain on:
Investments--net (including $891,480 in foreign capital gain tax and
$65,261,214 from affiliates) 387,129,090
Financial futures contracts and swaps--net 64,998,673
Options written--net 4,375,368
Foreign currency transactions--net 12,787,917 469,291,048
---------------
Change in unrealized appreciation/depreciation on:
Investments--net (includes $5,256,768 deferred foreign capital gain tax) 1,148,453,654
Financial futures contracts and swaps--net (21,104,182)
Options written--net (23,256,583)
Foreign currency transactions--net (3,789,495) 1,100,303,394
--------------- ---------------
Total realized and unrealized gain--net 1,569,594,442
---------------
Net Increase in Net Assets Resulting from Operations $ 1,680,470,682
===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 110,876,240 $ 165,815,719
Realized gain--net 469,291,048 671,254,097
Change in unrealized appreciation/depreciation--net 1,100,303,394 506,402,748
--------------- ---------------
Net increase in net assets resulting from operations 1,680,470,682 1,343,472,564
--------------- ---------------
Dividends & Distributions to Shareholders
Investment income--net:
Class A (55,102,529) (104,385,995)
Class B (16,557,515) (43,309,900)
Class C (27,202,664) (44,791,237)
Class I (34,590,577) (63,167,597)
Class R (784,092) (880,728)
Realized gain--net:
Class A (241,423,184) (40,397,160)
Class B (108,450,997) (24,717,612)
Class C (164,280,083) (21,446,556)
Class I (137,648,549) (22,165,324)
Class R (3,707,362) (272,891)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to shareholders (789,747,552) (365,535,000)
--------------- ---------------
Capital Share Transactions
Net increase in net assets derived from capital share transactions 1,902,216,184 1,828,372,200
--------------- ---------------
Redemption Fees
Redemption fees 93,990 100,529
--------------- ---------------
Net Assets
Total increase in net assets 2,793,033,304 2,806,410,293
Beginning of period 12,020,239,746 9,213,829,453
--------------- ---------------
End of period* $14,813,273,050 $12,020,239,746
=============== ===============
* Undistributed investment income--net $ 14,184,221 $ 37,545,358
=============== ===============
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Financial Highlights
Class A
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 17.30 $ 15.75 $ 14.27 $ 11.17 $ 12.50
---------- ---------- ---------- ---------- ----------
Investment income--net*** .17 .30 .23 .28 .35
Realized and unrealized gain (loss)--net 2.09++ 1.88++ 1.72++ 3.23 (1.19)
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.26 2.18 1.95 3.51 (.84)
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.21) (.45) (.47) (.41) (.48)
Realized gain--net (.92) (.18) -- -- (.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.13) (.63) (.47) (.41) (.49)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 18.43 $ 17.30 $ 15.75 $ 14.27 $ 11.17
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 13.62%+++ 14.12% 13.90% 32.10% (7.08%)
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses, net of waiver 1.07%* 1.09% 1.13% 1.18% 1.19%
========== ========== ========== ========== ==========
Expenses 1.16%* 1.17% 1.18% 1.22% 1.22%
========== ========== ========== ========== ==========
Investment income--net 1.96%* 1.79% 1.54% 2.28% 2.85%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of period (in thousands) $5,402,967 $4,482,210 $3,442,396 $2,675,367 $2,051,843
========== ========== ========== ========== ==========
Portfolio turnover 53.01% 49.08% 42.58% 45.28% 58.42%
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns exclude the effects of sales charges.
*** Based on average shares outstanding.
++ Includes redemption fees, which are less than $.01 per share.
+++ Aggregate total investment return.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Financial Highlights (continued)
Class B
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 16.94 $ 15.44 $ 13.99 $ 10.96 $ 12.25
---------- ---------- ---------- ---------- ----------
Investment income--net*** .10 .17 .11 .19 .25
Realized and unrealized gain (loss)--net 2.05++ 1.83++ 1.69++ 3.15 (1.16)
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.15 2.00 1.80 3.34 (.91)
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.14) (.32) (.35) (.31) (.37)
Realized gain--net (.92) (.18) -- -- (.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.06) (.50) (.35) (.31) (.38)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 18.03 $ 16.94 $ 15.44 $ 13.99 $ 10.96
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 13.21%+++ 13.19% 13.08% 31.05% (7.75%)
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses, net of waiver 1.83%* 1.86% 1.89% 1.96% 1.96%
========== ========== ========== ========== ==========
Expenses 1.92%* 1.94% 1.95% 2.00% 2.00%
========== ========== ========== ========== ==========
Investment income--net 1.19%* 1.04% .75% 1.52% 2.04%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of period (in thousands) $2,177,849 $2,060,638 $2,159,322 $2,094,428 $1,787,415
========== ========== ========== ========== ==========
Portfolio turnover 53.01% 49.08% 42.58% 45.28% 58.42%
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns exclude the effects of sales charges.
*** Based on average shares outstanding.
++ Includes redemption fees, which are less than $.01 per share.
+++ Aggregate total investment return.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Financial Highlights (continued)
Class C
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 16.47 $ 15.04 $ 13.66 $ 10.72 $ 12.02
---------- ---------- ---------- ---------- ----------
Investment income--net*** .10 .16 .11 .17 .25
Realized and unrealized gain (loss)--net 1.98++ 1.80++ 1.65++ 3.10 (1.14)
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.08 1.96 1.76 3.27 (.89)
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.15) (.35) (.38) (.33) (.40)
Realized gain--net (.92) (.18) -- -- (.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.07) (.53) (.38) (.33) (.41)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 17.48 $ 16.47 $ 15.04 $ 13.66 $ 10.72
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 13.18%+++ 13.25% 13.08% 31.03% (7.76%)
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses, net of waiver 1.83%* 1.86% 1.90% 1.96% 1.96%
========== ========== ========== ========== ==========
Expenses 1.92%* 1.94% 1.96% 2.00% 2.00%
========== ========== ========== ========== ==========
Investment income--net 1.20%* 1.01% .78% 1.45% 2.10%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of period (in thousands) $3,911,356 $2,841,071 $1,698,382 $ 865,342 $ 521,679
========== ========== ========== ========== ==========
Portfolio turnover 53.01% 49.08% 42.58% 45.28% 58.42%
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns exclude the effects of sales charges.
*** Based on average shares outstanding.
++ Includes redemption fees, which are less than $.01 per share.
+++ Aggregate total investment return.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Financial Highlights (continued)
Class I
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 17.36 $ 15.80 $ 14.31 $ 11.20 $ 12.53
---------- ---------- ---------- ---------- ----------
Investment income--net*** .19 .34 .27 .32 .38
Realized and unrealized gain (loss)--net 2.10++ 1.89++ 1.72++ 3.23 (1.19)
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.29 2.23 1.99 3.55 (.81)
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.23) (.49) (.50) (.44) (.51)
Realized gain--net (.92) (.18) -- -- (.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.15) (.67) (.50) (.44) (.52)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 18.50 $ 17.36 $ 15.80 $ 14.31 $ 11.20
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 13.77%+++ 14.41% 14.21% 32.42% (6.83%)
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses, net of waiver .82%* .84% .88% .94% .94%
========== ========== ========== ========== ==========
Expenses .91%* .92% .94% .97% .98%
========== ========== ========== ========== ==========
Investment income--net 2.21%* 2.04% 1.79% 2.55% 3.09%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of period (in thousands) $3,210,665 $2,574,791 $1,893,248 $1,370,866 $1,168,632
========== ========== ========== ========== ==========
Portfolio turnover 53.01% 49.08% 42.58% 45.28% 58.42%
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns exclude the effects of sales charges. Effective December 28, 2005,
Class I Shares are no longer subject to any front-end sales charge.
*** Based on average shares outstanding.
++ Includes redemption fees, which are less than $.01 per share.
+++ Aggregate total investment return.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Financial Highlights (concluded)
Class R
For the Six For the Period
Months Ended For the Year Ended January 3, 2003++
The following per share data and ratios have been derived April 30, October 31, to October 31,
from information provided in the financial statements. 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 16.93 $ 15.44 $ 14.04 $ 11.43
---------- ---------- ---------- ----------
Investment income--net** .15 .25 .21 .08
Realized and unrealized gain--net 2.03+++++ 1.85+++++ 1.66+++++ 2.71
---------- ---------- ---------- ----------
Total from investment operations 2.18 2.10 1.87 2.79
---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.19) (.43) (.47) (.18)
Realized gain--net (.92) (.18) -- --
---------- ---------- ---------- ----------
Total dividends and distributions (1.11) (.61) (.47) (.18)
---------- ---------- ---------- ----------
Net asset value, end of period $ 18.00 $ 16.93 $ 15.44 $ 14.04
========== ========== ========== ==========
Total Investment Return
Based on net asset value per share 13.46%+++ 13.87% 13.60% 24.57%+++
========== ========== ========== ==========
Ratios to Average Net Assets
Expenses, net of waiver 1.32%* 1.35% 1.38% 1.42%*
========== ========== ========== ==========
Expenses 1.40%* 1.42% 1.45% 1.47%*
========== ========== ========== ==========
Investment income--net 1.73%* 1.48% 1.35% 1.93%*
========== ========== ========== ==========
Supplemental Data
Net assets, end of period (in thousands) $ 110,436 $ 61,531 $ 20,482 $ 341
========== ========== ========== ==========
Portfolio turnover 53.01% 49.08% 42.58% 45.28%
========== ========== ========== ==========
* Annualized.
** Based on average shares outstanding.
++ Commencement of operations.
+++ Aggregate total investment return.
+++++ Includes redemption fees, which are less than $.01 per share.
See Notes to Financial Statements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Notes to Financial Statements
1. Significant Accounting Policies:
Merrill Lynch Global Allocation Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as 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. These unaudited financial statements reflect
all adjustments, which are, in the opinion of management, necessary to
present a fair statement of the results for the interim period. All such
adjustments are of a normal, recurring nature. The Fund offers multiple
classes of shares. Effective December 28, 2005, Class I Shares are no longer
subject to any front-end sales charge. Class A Shares 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 I Shares are sold only to certain
eligible investors. 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 may vote on material changes to the Class A distribution plan).
Income, expenses (other than expenses attributable to a specific class) and
realized and unrealized gains 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--Debt securities are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid
price in the OTC market or on the basis of values obtained by a pricing
service. Pricing services use valuation matrixes that incorporate both dealer-
supplied valuations and valuation models. The procedures of the pricing
service and its valuations are reviewed by the officers of the Fund under the
general direction of the Board of Directors. Such valuations and procedures
will be reviewed periodically by the Board of Directors of the Fund. Financial
futures contracts and options thereon, which are traded on exchanges, are
valued at their closing prices as of the close of such exchanges. Options
written or purchased are valued at the last sales price in the case of
exchange-traded options. In the case of options traded in the OTC market,
valuation is the last asked price (options written) or the last bid price
(options purchased). Swap agreements are valued based upon quoted fair
valuations received daily by the Fund from a pricing service or counterparty.
Short-term investments with a remaining maturity of 60 days or less are valued
at amortized cost, which approximates market value, under which method the
investment is valued at cost and any premium or discount is amortized on a
straight line basis to maturity. Valuation of other short-term investment
vehicles is generally based on the net asset value of the underlying
investment vehicle or amortized cost. Repurchase agreements are valued at cost
plus accrued interest. Investments in open-end investment companies are valued
at their net asset value each business day. Securities and other 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.
Equity securities that are held by the Fund, which 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 asked 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 OTC market, Nasdaq Small Cap or Bulletin Board are
valued at the last available bid price 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 asked
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.
Generally, trading in foreign securities as well as U.S. government
securities, money market instruments and certain fixed income securities, 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.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Notes to Financial Statements (continued)
(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. The Fund invests in foreign securities, which may involve a
number of risk factors and special considerations not present with investments
in securities of U.S. corporations.
(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.
* 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 purchase or sell listed
or OTC 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.
* Options--The Fund may purchase and write covered call and put options. When
the Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current value of the
option written. When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or deducted from)
the basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to the
extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Financial futures contracts--The Fund may purchase or sell financial futures
contracts and options on such futures contracts. 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.
* Swaps--The Fund may enter into swap agreements, which are OTC contracts in
which the Fund and a counterparty agree to make periodic net payments on a
specified notional amount. The net payments can be made for a set period of
time or may be triggered by a predetermined credit event. The net periodic
payments may be based on a fixed or variable interest rate; the change in
market value of a specified security, basket of securities, or index; or the
return generated by a security. These periodic payments received or made by
the Fund are recorded in the accompanying Statement of Operations as realized
gains or losses, respectively. Gains or losses are also realized upon
termination of the swap agreements. Swaps are marked-to-market daily based on
dealer supplied valuations and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the swap
agreements.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
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 on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
(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) Bank overdraft--The Fund recorded a bank overdraft, which resulted from
management estimates of available cash.
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 Plan 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 of .75%, on an annual basis, of the average daily value of the
Fund's net assets. MLIM has voluntarily agreed to waive a portion of its fee
payable by the Fund so that such fee is reduced for average daily net assets
of the Fund in excess of $2.5 billion from the annual rate of .75% to .70%,
from .70% to .65% for average daily net assets in excess of $5 billion, from
..65% to .625% for average daily net assets in excess of $7.5 billion, and from
..625% to .60% for average daily net assets in excess of $10 billion. For the
six months ended April 30, 2006, MLIM earned fees of $48,936,168, of which
$5,802,647 was waived. 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 ALLOCATION FUND, INC. APRIL 30, 2006
Notes to Financial Statements (continued)
Pursuant to the Distribution Plan 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"), an affiliate of MLIM, 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 six months ended April 30, 2006, 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 $ 350,611 $4,726,236
Class I $ 5,647 $ 87,266
For the six months ended April 30, 2006, MLPF&S received contingent deferred
sales charges of $681,007 and $219,318 relating to transactions in Class B
and Class C Shares, respectively. Furthermore, MLPF&S received contingent
deferred sales charges of $45,441 relating to transactions subject to front-
end sales charge waivers in Class A.
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 April 30, 2006, the Fund lent securities with a value of
$67,166,973. 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. For the six months ended April 30, 2006, MLIM, LLC
received $140,883 in securities lending agent fees.
In addition, MLPF&S received $367,498 in commissions on the execution of
portfolio security transactions for the Fund for the six months ended April
30, 2006.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co.,
is the Fund's transfer agent.
For the six months ended April 30, 2006, the Fund reimbursed MLIM $122,221
for certain accounting services.
Certain officers and/or directors of the Fund are officers and/or directors
of MLIM, PSI, MLAM U.K., FDS, FAMD, ML & Co., and/or MLIM, LLC.
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
contribute ML & Co.'s investment management business, including MLIM, to the
investment management business of BlackRock, Inc. The transaction is expected
to close in the third quarter of 2006.
3. Investments:
Purchases and sales of investments (including paydowns), excluding short-term
securities, for the six months ended April 30, 2006 were $8,032,187,821 and
$5,762,723,814, respectively.
Transactions in call options written for the six months ended April 30, 2006
were as follows:
Number of Premiums
Contracts Received
Outstanding call options written,
beginning of period 198,194 $ 44,791,719
Options written 166,439 43,387,375
Options exercised (115,409) (21,352,430)
Options expired (22,312) (5,265,237)
Options closed (8,000) (913,961)
--------------- ---------------
Outstanding call options
written, end of period 218,912 $ 60,647,466
=============== ===============
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Notes to Financial Statements (continued)
Transactions in put options written for the six months ended April 30, 2006
were as follows:
Number of Premiums
Contracts Received
Outstanding put options written,
beginning of period 242 $ 220,254
Options expired (182) (157,128)
Options closed (60) (63,126)
--------------- ---------------
Outstanding put options written,
end of period -- $ --
=============== ===============
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions was
$1,902,216,184 and $1,828,372,200, for the six months ended April 30, 2006
and the year ended October 31, 2005, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the
Six Months Ended Dollar
April 30, 2006 Shares Amount
Shares sold 29,322,098 $ 515,711,216
Automatic conversion of shares 9,803,489 172,096,024
Shares issued to shareholders in
reinvestment of dividends and
distributions 15,231,550 257,717,824
--------------- ---------------
Total issued 54,357,137 945,525,064
Shares redeemed (20,295,569) (358,230,176)
--------------- ---------------
Net increase 34,061,568 $ 587,294,888
=============== ===============
Class A Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
Shares sold 40,912,172 $ 681,992,456
Automatic conversion of shares 26,752,691 446,824,405
Shares issued to shareholders in
reinvestment of dividends and
distributions 7,633,660 124,775,622
--------------- ---------------
Total issued 75,298,523 1,253,592,483
Shares redeemed (34,784,591) (581,719,523)
--------------- ---------------
Net increase 40,513,932 $ 671,872,960
=============== ===============
Class B Shares for the
Six Months Ended Dollar
April 30, 2006 Shares Amount
Shares sold 13,214,076 $ 227,832,119
Shares issued to shareholders in
reinvestment of dividends and
distributions 6,648,275 110,361,362
--------------- ---------------
Total issued 19,862,351 338,193,481
--------------- ---------------
Automatic conversion of shares (10,008,890) (172,096,024)
Shares redeemed (10,693,155) (184,291,792)
--------------- ---------------
Total redeemed (20,702,045) (356,387,816)
--------------- ---------------
Net decrease (839,694) $ (18,194,335)
=============== ===============
Class B Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
Shares sold 27,414,680 $ 446,965,389
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,700,009 59,158,656
--------------- ---------------
Total issued 31,114,689 506,124,045
--------------- ---------------
Automatic conversion of shares (27,300,436) (446,824,405)
Shares redeemed (22,085,329) (360,694,309)
--------------- ---------------
Total redeemed (49,385,765) (807,518,714)
--------------- ---------------
Net decrease (18,271,076) $ (301,394,669)
=============== ===============
Class C Shares for the
Six Months Ended Dollar
April 30, 2006 Shares Amount
Shares sold 51,530,817 $ 862,381,196
Shares issued to shareholders in
reinvestment of dividends and
distributions 10,730,979 172,661,442
--------------- ---------------
Total issued 62,261,796 1,035,042,638
Shares redeemed (11,023,700) (184,554,741)
--------------- ---------------
Net increase 51,238,096 $ 850,487,897
=============== ===============
Class C Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
Shares sold 71,803,603 $ 1,141,878,037
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,771,038 58,809,151
--------------- ---------------
Total issued 75,574,641 1,200,687,188
Shares redeemed (15,981,931) (254,289,033)
--------------- ---------------
Net increase 59,592,710 $ 946,398,155
=============== ===============
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Notes to Financial Statements (concluded)
Class I Shares for the
Six Months Ended Dollar
April 30, 2006 Shares Amount
Shares sold 28,815,689 $ 508,699,786
Shares issued to shareholders in
reinvestment of dividends and
distributions 8,877,208 150,646,224
--------------- ---------------
Total issued 37,692,897 659,346,010
Shares redeemed (12,449,218) (219,546,108)
--------------- ---------------
Net increase 25,243,679 $ 439,799,902
=============== ===============
Class I Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
Shares sold 42,540,007 $ 710,315,653
Shares issued to shareholders in
reinvestment of dividends and
distributions 4,482,584 73,514,786
--------------- ---------------
Total issued 47,022,591 783,830,439
Shares redeemed (18,532,782) (310,048,866)
--------------- ---------------
Net increase 28,489,809 $ 473,781,573
=============== ===============
Class R Shares for the
Six Months Ended Dollar
April 30, 2006 Shares Amount
Shares sold 3,327,038 $ 57,259,456
Shares issued to shareholders in
reinvestment of dividends and
distributions 271,363 4,488,347
--------------- ---------------
Total issued 3,598,401 61,747,803
Shares redeemed (1,098,596) (18,919,971)
--------------- ---------------
Net increase 2,499,805 $ 42,827,832
=============== ===============
Class R Shares for the Year Dollar
Ended October 31, 2005 Shares Amount
Shares sold 3,693,720 $ 60,514,236
Shares issued to shareholders in
reinvestment of dividends and
distributions 71,641 1,153,049
--------------- ---------------
Total issued 3,765,361 61,667,285
Shares redeemed (1,456,914) (23,953,104)
--------------- ---------------
Net increase 2,308,447 $ 37,714,181
=============== ===============
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 or exchange. 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.
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by MLIM and its affiliates,
is party to a $500,000,000 credit agreement with a group of 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 .07% 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
defined in the credit agreement. The Fund did not borrow under the credit
agreement during the six months ended April 30, 2006. On November 23, 2005,
the credit agreement was renewed for one year under substantially the same
terms.
6. Capital Loss Carryforward:
On October 31, 2005, the Fund had a net capital loss carryforward of
$23,246,540, of which $16,013,367 expires in 2008, $5,337,789 expires in 2009,
and $1,895,384 expires in 2010. This amount will be available to offset like
amounts of any future taxable gains.
7. Commitments:
At April 30, 2006, the Fund had entered into foreign exchange contracts, in
addition to the contracts listed on the schedule of investments, under which
it had agreed to sell various foreign currencies with an approximate value
of $109,000.
8. Subsequent Event:
Effective May 23, 2006, MLIM has voluntarily agreed to waive a portion of its
fee payable by the Fund so that such fee is reduced for the average daily net
assets of the Fund in excess of $2.5 billion from the annual rate of .75% to
..70%, from .70% to .65% for average daily net assets in excess of $5 billion,
from .65% to .625% for average daily net assets in excess of $7.5 billion,
from .625% to .60% for average daily net assets in excess of $10 billion, and
..60% to .575% for average daily net assets in excess of $15 billion.
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
Officers and Directors
Robert C. Doll, Jr., President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Jean Margo Reid, Director
Roscoe S. Suddarth, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Donald C. Burke, Vice President and Treasurer
Dennis W. Stattman, Vice President and
Senior Portfolio Manager
Dan Chamby, Vice President and Associate
Portfolio Manager
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
800-637-3863
MERRILL LYNCH GLOBAL ALLOCATION FUND, INC. APRIL 30, 2006
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 at 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 ALLOCATION FUND, INC. APRIL 30, 2006
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-
annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
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 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(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.
11(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 last 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 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(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 Allocation Fund, Inc.
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Global Allocation Fund, Inc.
Date: June 22, 2006
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/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Global Allocation Fund, Inc.
Date: June 22, 2006
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
Merrill Lynch Global Allocation Fund, Inc.
Date: June 22, 2006