UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08327
Name of Fund: BlackRock Global Growth 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, BlackRock Global Growth Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 08/31/06
Date of reporting period: 09/01/05 - 08/31/06
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY
REAL ESTATE
BlackRock
Global Growth Fund, Inc.
ANNUAL REPORT AUGUST 31, 2006
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
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 1-800-441-7762; (2) at
www.blackrock.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.blackrock.com and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
BlackRock Global Growth Fund, Inc.
Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS...logo)
It's Fast, Convenient, & Timely!
To sign up today, go to www.blackrock.com/edelivery.
BlackRock Global Growth Fund, Inc.
Portfolio Information as of August 31, 2006
Country of Percent of
Ten Largest Equity Holdings Origin Net Assets
Macquarie Bank Ltd. Australia 1.9%
QBE Insurance Group Ltd. Australia 1.9
BHP Billiton Ltd. Australia 1.7
Cheung Kong Infrastructure
Holdings Ltd. Hong Kong 1.6
Corning, Inc. United States 1.5
Australia & New Zealand
Banking Group Ltd. Australia 1.5
Novartis AG Registered
Shares Switzerland 1.5
Commonwealth Bank of
Australia Australia 1.5
National Australia Bank Ltd. Australia 1.5
Diageo Plc United Kingdom 1.5
Percent of
Five Largest Industries Net Assets
Commercial Banks 9.4%
Metals & Mining 6.8
Oil, Gas & Consumable Fuels 6.2
Construction & Engineering 5.7
Communications Equipment 5.2
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.
Percent of
Geographic Allocation Total
by Country Investments
United States 29.2%
Australia 20.3
India 11.5
Japan 9.9
Hong Kong 5.6
United Kingdom 3.6
Canada 3.5
Switzerland 2.8
South Africa 2.1
France 2.0
South Korea 1.7
Germany 1.6
Italy 0.8
Norway 0.7
China 0.7
Finland 0.5
Spain 0.4
Brazil 0.3
Other* 2.8
* Includes portfolio holdings in short-term investments.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
A Letter to Shareholders
Dear Shareholder
It is my pleasure to welcome you to BlackRock.
On September 29, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch
Investment Managers, L.P. ("MLIM") united to form one of the largest asset
management firms in the world. Now with more than $1 trillion in assets under
management, over 4,000 employees in 18 countries and representation in key
markets worldwide, BlackRock's global presence means greater depth and scale
to serve you.
The new BlackRock unites some of the finest money managers in the industry.
Our ranks include more than 500 investment professionals globally - portfolio
managers, research analysts, risk management professionals and traders. With
offices strategically located around the world, our investment professionals
have in-depth local knowledge and the ability to leverage our global presence
and robust infrastructure to deliver focused investment solutions. BlackRock's
professional investors are supported by disciplined investment processes and
best-in-class technology, ensuring that our portfolio managers are well
equipped to research, uncover and capitalize on the opportunities the world's
markets have to offer.
The BlackRock culture emphasizes excellence, teamwork and integrity in the
management of a variety of equity, fixed income, cash management, alternative
investment and real estate products. Our firm's core philosophy is grounded in
the belief that experienced investment and risk professionals using disciplined
investment processes and sophisticated analytical tools can consistently add
value to client portfolios.
As you probably are aware, former MLIM investment products now carry the
"BlackRock" name. This is reflected in newspapers and online fund reporting
resources. Your account statements will reflect the BlackRock name beginning
with the October month-end reporting period. Unless otherwise communicated to
you, your funds maintain the same investment objectives that they did prior to
the combination of MLIM and BlackRock. Importantly, this union does not affect
your brokerage account or your relationship with your financial advisor.
Clients of Merrill Lynch remain clients of Merrill Lynch.
We view this combination of asset management leaders as a complementary union
that reinforces our commitment to shareholders. Individually, each firm made
investment performance its single most important mission. Together, we are
even better prepared to capitalize on market opportunities on behalf of our
shareholders. Our focus on investment excellence is accompanied by an
unwavering commitment to service, enabling us to assist clients, in
cooperation with their financial professionals, in working toward their
investment goals. We thank you for allowing us the opportunity, and we look
forward to serving your investment needs in the months and years ahead as the
new BlackRock.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
Vice Chairman
BlackRock, Inc.
Data, including assets under management, are as of June 30, 2006.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
A Discussion With Your Fund's Portfolio Manager
The Fund significantly outperformed the MSCI World Index and its comparable
Lipper category average for the fiscal year, benefiting from favorable stock
selection and geographic allocations.
How did the Fund perform during the fiscal year in light of the existing
market conditions?
For the 12-month period ended August 31, 2006, BlackRock Global Growth Fund's
Class A, Class B, Class C, Class I and Class R Shares had total returns of
+20.13%, +19.18%, +19.15%, +20.41% and +19.78%, respectively. (Fund results
shown do not reflect sales charges and would be lower if sales charges were
included. Complete performance information can be found on pages 6 and 7 of
this report to shareholders.) The Fund outperformed the +15.77% return of its
unmanaged benchmark, the Morgan Stanley Capital International (MSCI) World
Index, and the +14.22% average return of the Lipper Global Multi-Cap Growth
Funds category for the same period. (Funds in this Lipper category invest in a
variety of market capitalization ranges without concentrating 75% of their
equity assets in any one market capitalization range over an extended period
of time. Global multi-cap funds typically have 25% to 75% of their assets
invested in companies both inside and outside the United States with market
capitalizations, on a three-year weighted basis, greater than the 500th-
largest company in the S&P/Citigroup World Broad Market Index. Multi-cap
growth funds typically have an above-average price-to-cash flow ratio, price-
to-book ratio and three-year sales-per-share growth value compared to the
S&P/Citigroup BMI.)
Global equity markets posted strong returns, on a U.S. dollar basis, during
the 12 months ended August 31, 2006. All local markets in which the Fund was
invested outperformed the MSCI World Index, with the exception of the United
States. The S&P 500 Index's below-average return of +8.88% is noteworthy, as
this major U.S. equity index accounts for more than 50% of the MSCI World
Index.
The strong returns seen over the fiscal year were driven by robust rates of
economic growth in the United States and other regions around the globe. In
particular, the Asia-Pacific region was a prime contributor to a high level
of global demand for energy, materials and industrial inputs. Gross domestic
product (GDP) growth rates of nearly 10% were seen in China and India, while
U.S. growth advanced at a rate above the long-term trend for most of the
period. After several quarters of favorable performance, many global equity
markets became extended and overdue for a price correction. At the same time,
an unsustainable, and perhaps speculative, upward price spiral in many
sectors - particularly energy and materials - surfaced.
From early May to early June, many global equity markets in which the Fund
invests experienced price corrections of between 8% (U.S., as measured by the
S&P 500 Index) and as much as 29% (India, as measured by the BSE Sensex 30
Index). The MSCI World Index declined roughly 12% during this period. Such
price action was largely triggered by global liquidity concerns as many
monetary authorities around the world adopted a decidedly "tighter" interest
rate stance. In the United States, increasing inflationary expectations and
questions over the interest rate policy intentions of the Federal Reserve
Board (the Fed) contributed to heightened investor uncertainty. In Japan,
monetary authorities moved away from the zero interest rate policy that
existed for many years. A gradually improving economy helped to reduce the
deflationary fears that have troubled consumers and businesses for a prolonged
period of time. The implications of lower global liquidity served to increase
risk premium levels and decrease stock market valuations.
Toward fiscal year-end, global equity markets retraced portions of their
respective sell-offs. The recoveries ranged from nearly 50% (Australia, as
measured by the ASX 200 Index) to as much as 100% (U.S.). The MSCI World Index
recouped about two-thirds of its sell-off during this time. While increased
investor complacency allowed this recovery to occur, a distinct change of
market leadership ensued. The cyclically biased outperformance of the energy,
industrials and materials sectors transitioned to a more risk-averse,
defensive market posture where consumer staples, healthcare and financials
performed well. As is typical with this type of market action, these changes
were more reflective of a shift in investor sentiment than any dramatic change
in underlying fundamentals to date.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
What factors most influenced Fund performance?
The Fund's outperformance of its benchmark is attributed to a combination of
favorable stock selection and geographic allocations. In particular, the Fund
benefited from successful stock selection in the consumer discretionary,
energy, information technology (IT), materials and industrials sectors. From a
geographic perspective, an underweight position in the United States and
overweightings in India, Australia and South Korea contributed to Fund
results. Among the top stocks were mining companies Hindustan Zinc Ltd.
(India), Zinifex Ltd. (Australia) and Cameco Corp. (Canada); automaker Hyundai
Motor Co. (South Korea); diversified industrials company Reliance Industries
Ltd. (India); engineering firm Larsen & Tourbro Ltd. (India); and energy
services firm Aker Kvaerner ASA (Norway), a provider of construction services
to the energy industry. Other stocks that contributed meaningfully to Fund
performance were health care company CSL Ltd. (Australia), real estate company
Leopalace21 Corp. (Japan) and insurance company QBE Insurance Group Ltd.
(Australia).
Offsetting the positives were underweight positions in financials, utilities
and consumer staples. Geographically, our holdings in Switzerland, Germany,
the United Kingdom and Japan marginally detracted from returns. Shares of
Cyber Communications Inc. (Japan), Toll Holdings Pty Ltd. (Australia), Joy
Global Inc. (U.S.), Electronic Arts (U.S.) and Exxon Mobil Corp. (U.S.) were
among the individual holdings that negatively impacted returns for the period.
What changes were made to the portfolio during the period?
After increasing our long-standing underweight in Japan early in the fiscal
year to a near 50% overweight, we took select profits and reduced this posture
to reflect a weighting equal to that of the benchmark (approximately 10% of
net assets) by period-end. Questions surrounding the recovery in consumer
spending and the impact of tighter monetary policy caused us to revisit our
outlook for the Japanese equities market. In addition, we also reduced
exposure to South Korea and increased exposure to the United Kingdom,
primarily for stock-specific reasons. Our U.S. weighting increased marginally
but remained well under that of the benchmark at just under 30% of net assets,
versus the index's 52%. From a sector perspective, we increased the Fund's
commitment to IT by roughly eight percentage points during the fiscal year to
approximately 13% of net assets. After remaining well underweighted for
multiple investment periods, we chose to expand our exposure primarily in the
communications equipment and IT services segments, where we believe above-
average global growth opportunities exist. This resulted in a modest
overweight compared to the benchmark. We also increased the Fund's exposure to
the materials sector during the period, emphasizing metals and mining in the
Australian market and trimming chemical company investments. Our position
in the industrials sector was expanded slightly due to individual stock
selection. At period-end, industrials represented the largest sector weighting
in the portfolio at more than 20% of net assets. Finally, we reduced exposure
to the consumer discretionary sector amid stock-specific issues and to the
energy sector on profit-taking opportunities.
We added several new names to the portfolio throughout the fiscal year,
including BHP Billiton Ltd. (Australia), Corning Inc. (U.S.), Australia & New
Zealand Banking Group Limited (Australia), Novartis AG (Switzerland) and
Diageo Plc (U.K.). Among the noteworthy deletions were Porsche AG (Germany),
Sanofi-Aventis S.A. (France), 3M Co. (U.S.), Coca-Cola Amatil Ltd. (Australia)
and Reckitt Benckiser Plc (U.K.).
How would you characterize the Fund's position at the close of the period?
While U.S. economic growth is slowing to a typical later cycle rate of
expansion (in the area of 2%-3%), many other global economies continue to
experience strong rates of growth. Specifically, GDP growth in the Asia-
Pacific region is expected to remain at high levels and growth in continental
Europe is expected to improve at an even faster rate than had been
anticipated. Although we are not predicting a significant slowdown in the U.S.
economy, this region presents the most challenging element in the overall
global growth landscape. As such, we maintain an underweight exposure to the
United States.
We believe the Fund remains well-positioned to take advantage of profitable
opportunities in the Asia-Pacific region, where markets are experiencing above-
average growth. Relatively high rates of growth in demand for energy,
materials, industrial and consumer goods are expected to support an upward
secular trend in energy and materials prices for an extended period of time.
We believe such rates of real growth are attainable over the visible future
with above-average spending in public and private infrastructure and the
emergence of new consumer markets within many of these countries. Recent price
corrections in many of these markets appear temporary against this longer-term
background. As of period-end, about 50% of the Fund's net assets was invested
in stocks in these markets and less than 17% in emerging market economies.
Thomas E. Burke, CFA
Vice President and Portfolio Manager
September 12, 2006
Effective October 2, 2006, the Fund's Class A, Class B, Class C and Class I
Shares were redesignated Investor A, Investor B, Investor C and
Institutional Shares, respectively. Class R Shares remain the same.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Performance Data
About Fund Performance
The Fund has multiple classes of shares:
* 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.
* Class I Shares are not subject to any front-end sales charge. Class I Shares
bear no ongoing distribution or account maintenace fees and are available only
to eligible investors.
* Class R Shares do not incur a maximum sales charge (front-end load) or
deferred sales charge. These shares are subject to a distribution fee of 0.25%
per year and an account maintenance fee of 0.25% per year. Class R Shares are
available only to certain retirement plans. 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.blackrock.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.
Recent Performance Results
6-Month 12-Month Since Inception
As of August 31, 2006 Total Return Total Return Total Return
Class A Shares* +4.23% +20.13% +58.63%
Class B Shares* +3.78 +19.18 +49.00
Class C Shares* +3.79 +19.15 +47.90
Class I Shares* +4.35 +20.41 +62.13
Class R Shares* +4.06 +19.78 +56.74
MSCI World Index** +4.97 +15.77 +69.40
* 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. The Fund's inception date is 10/31/97.
** This unmanaged market capitalization-weighted Index is comprised of a representative sampling of
large-, medium- and small-capitalization companies in 22 countries, including the United States.
Since inception total returns are from 10/31/97.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Performance Data (concluded)
Total Return Based on a $10,000 Investment
A line graph illustrating the growth of a $10,000 investment in Class A, Class
B, Class C, Class I and Class R Shares*++ compared to a similar investment in
MSCI World Index++++. Values illustrated are as follows:
Class A Shares*++
Date Value
10/31/1997** $ 9,475.00
August 1998 $10,186.00
August 1999 $13,059.00
August 2000 $18,437.00
August 2001 $11,140.00
August 2002 $ 8,202.00
August 2003 $ 8,863.00
August 2004 $ 9,996.00
August 2005 $12,511.00
August 2006 $15,030.00
Class B Shares*++
Date Value
10/31/1997** $10,000.00
August 1998 $10,680.00
August 1999 $13,592.00
August 2000 $19,035.00
August 2001 $11,419.00
August 2002 $ 8,341.00
August 2003 $ 8,940.00
August 2004 $10,002.00
August 2005 $12,421.00
August 2006 $14,900.00
Class C Shares*++
Date Value
10/31/1997** $10,000.00
August 1998 $10,680.00
August 1999 $13,588.00
August 2000 $19,030.00
August 2001 $11,425.00
August 2002 $ 8,337.00
August 2003 $ 8,935.00
August 2004 $ 9,997.00
August 2005 $12,413.00
August 2006 $14,790.00
Class I Shares*++
Date Value
10/31/1997** $10,000.00
August 1998 $10,780.00
August 1999 $13,848.00
August 2000 $19,591.00
August 2001 $11,874.00
August 2002 $ 8,768.00
August 2003 $ 9,494.00
August 2004 $10,722.00
August 2005 $13,464.00
August 2006 $16,213.00
Class R Shares*++
Date Value
10/31/1997** $10,000.00
August 1998 $10,735.00
August 1999 $13,722.00
August 2000 $19,317.00
August 2001 $11,648.00
August 2002 $ 8,558.00
August 2003 $ 9,269.00
August 2004 $10,485.00
August 2005 $13,087.00
August 2006 $15,674.00
MSCI World Index++++
Date Value
10/31/1997** $10,000.00
August 1998 $10,390.00
August 1999 $13,823.00
August 2000 $15,638.00
August 2001 $11,668.00
August 2002 $ 9,661.00
August 2003 $10,716.00
August 2004 $12,390.00
August 2005 $14,633.00
August 2006 $16,940.00
* Assuming maximum sales charge, transaction costs and other operating
expenses, including advisory fees.
** Commencement of operations.
++ The Fund invests primarily in equity securities with a particular emphasis
on companies that have exhibited above-average growth rates in earnings.
++++ This unmanaged market capitalization-weighted Index is comprised of a
representative sampling of large-, medium- and small-capitalization
companies in 22 countries, including the United States.
Past performance is not indicative of future results.
Average Annual Total Return
Return Without Return With
Sales Charge Sales Charge**
Class A Shares*
One Year Ended 8/31/06 +20.13% +13.82%
Five Years Ended 8/31/06 + 6.17 + 5.03
Inception (10/31/97)
through 8/31/06 + 5.36 + 4.72
Return Without Return With
CDSC CDSC++++++
Class B Shares++
One Year Ended 8/31/06 +19.18% +15.18%
Five Years Ended 8/31/06 + 5.33 + 5.00
Inception (10/31/97)
through 8/31/06 + 4.62 + 4.62
Return Without Return With
CDSC CDSC++++++
Class C Shares++++
One Year Ended 8/31/06 +19.15% +18.15%
Five Years Ended 8/31/06 + 5.30 + 5.30
Inception (10/31/97)
through 8/31/06 + 4.53 + 4.53
Class I Shares Return
One Year Ended 8/31/06 +20.41%
Five Years Ended 8/31/06 + 6.43
Inception (10/31/97)
through 8/31/06 + 5.62
Class R Shares Return
One Year Ended 8/31/06 +19.78%
Five Years Ended 8/31/06 + 6.12
Inception (10/31/97)
through 8/31/06 + 5.22
* 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.
++++ Maximum contingent deferred sales charge is 1% and is reduced
to 0% after one year.
++++++ Assuming payment of applicable contingent deferred sales
charge.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 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 March 1, 2006 and
held through August 31, 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 March 1, 2006
March 1, August 31, to August 31,
2006 2006 2006
Actual
Class A $1,000 $1,042.30 $ 7.05
Class B $1,000 $1,037.80 $10.63
Class C $1,000 $1,037.90 $10.99
Class I $1,000 $1,043.50 $ 5.72
Class R $1,000 $1,040.60 $ 8.33
Hypothetical (5% annual return before expenses)**
Class A $1,000 $1,018.29 $ 6.97
Class B $1,000 $1,014.76 $10.51
Class C $1,000 $1,014.41 $10.87
Class I $1,000 $1,019.60 $ 5.65
Class R $1,000 $1,017.03 $ 8.24
* For each class of the Fund, expenses are equal to the annualized expense ratio for the class
(1.37% for Class A, 2.07% for Class B, 2.14% for Class C, 1.11% for Class I and 1.62% for
Class R), multiplied by the average account value over the period, multiplied by 184/365
(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.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Schedule of Investments (in U.S. dollars)
Shares
Industry Common Stocks Held Value
Africa
South Africa--2.2%
Construction & Engineering--0.2%
Aveng Ltd. 272,700 $ 1,009,860
Construction Materials--0.3%
Pretoria Portland Cement Co. Ltd. 24,000 1,294,868
Health Care Providers &
Services--0.2%
Network Healthcare Holdings Ltd. 719,300 1,167,241
Industrial Conglomerates--0.4%
Barloworld Ltd. 91,800 1,728,412
Media--0.3%
Naspers Ltd. 75,700 1,307,164
Metals & Mining--0.7%
Impala Platinum Holdings Ltd. 8,700 1,610,888
Kumba Resouces Ltd. 94,900 1,914,716
-------------
3,525,604
Pharmaceuticals--0.1%
Aspen Pharmacare Holdings Ltd. 148,100 684,629
Total Common Stocks in
Africa--2.2% 10,717,778
Europe
Finland--0.5%
Oil, Gas & Consumable Fuels--0.5%
Neste Oil Oyj 78,400 2,468,754
Total Common Stocks in Finland 2,468,754
France--2.1%
Construction & Engineering--1.2%
Vinci SA 53,000 5,732,700
Machinery--0.3%
Vallourec 6,000 1,344,052
Textiles, Apparel &
Luxury Goods--0.6%
LVMH Moet Hennessy Louis Vuitton SA 29,500 3,034,133
Total Common Stocks in France 10,110,885
Germany--1.7%
Chemicals--0.4%
Wacker Chemie AG (a) 17,600 2,123,346
Industrial Conglomerates--0.8%
Siemens AG 45,000 3,812,114
Software--0.5%
SAP AG 12,000 2,290,110
Total Common Stocks in Germany 8,225,570
Italy--0.8%
Commercial Banks--0.8%
UniCredito Italiano SpA 508,000 4,047,899
Total Common Stocks in Italy 4,047,899
Norway--0.7%
Energy Equipment & Services--0.7%
Aker Kvaerner ASA 37,100 3,560,065
Total Common Stocks in Norway 3,560,065
Shares
Industry Common Stocks Held Value
Europe (concluded)
Spain--0.3%
Transportation Infrastructure--0.3%
Cintra Concesiones de Infraestructuras
de Transporte SA 135,000 $ 1,792,005
Total Common Stocks in Spain 1,792,005
Switzerland--2.8%
Commercial Services &
Supplies--0.5%
SGS SA 2,400 2,189,870
Pharmaceuticals--1.5%
Novartis AG Registered Shares 131,000 7,464,009
Textiles, Apparel &
Luxury Goods--0.8%
The Swatch Group Ltd. Registered Shares 103,700 4,087,611
Total Common Stocks in Switzerland 13,741,490
United Kingdom--3.6%
Beverages--1.5%
Diageo Plc 408,300 7,261,670
Commercial Banks--1.1%
HSBC Holdings Plc 300,000 5,438,256
Pharmaceuticals--1.0%
GlaxoSmithKline Plc 180,000 5,094,727
Total Common Stocks in
the United Kingdom 17,794,653
Total Common Stocks
in Europe--12.5% 61,741,321
Latin America
Brazil--0.4%
Personal Products--0.4%
Natura Cosmeticos SA 137,300 1,715,848
Total Common Stocks in
Latin America--0.4% 1,715,848
North America
Canada--3.5%
Chemicals--0.4%
Potash Corp. of Saskatchewan 22,000 2,154,702
Commercial Banks--0.5%
Royal Bank of Canada 58,700 2,590,787
Diversified Financial Services--0.5%
TSX Group, Inc. 51,400 2,297,310
Energy Equipment & Services--0.6%
Ensign Resource Service Group 134,800 2,775,562
Metals & Mining--0.3%
Teck Cominco Ltd. Class B 20,100 1,333,057
Oil, Gas & Consumable Fuels--1.2%
Cameco Corp. 152,600 6,220,882
Total Common Stocks in Canada 17,372,300
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
North America (continued)
United States--29.6%
Aerospace & Defense--1.4%
BE Aerospace, Inc. (a) 105,200 $ 2,510,072
Lockheed Martin Corp. 50,900 4,204,340
-------------
6,714,412
Capital Markets--1.0%
The Charles Schwab Corp. 314,300 5,126,233
Commercial Banks--0.6%
HDFC Bank Ltd. 48,900 2,781,432
Communications Equipment--4.3%
Cisco Systems, Inc. (a) 225,000 4,947,750
Corning, Inc. (a) 342,200 7,610,528
Motorola, Inc. 220,000 5,143,600
QUALCOMM, Inc. 98,000 3,691,660
-------------
21,393,538
Construction & Engineering--1.2%
Jacobs Engineering Group, Inc. (a) 64,800 5,643,432
Diversified Financial Services--1.0%
Citigroup, Inc. 100,000 4,935,000
Electrical Equipment--2.0%
Emerson Electric Co. 56,800 4,666,120
Roper Industries, Inc. 113,500 5,264,130
-------------
9,930,250
Energy Equipment & Services--3.2%
Grant Prideco, Inc. (a) 105,200 4,368,956
Halliburton Co. 74,200 2,420,404
National Oilwell Varco, Inc. (a)(d) 72,200 4,714,660
Schlumberger Ltd. 72,600 4,450,380
-------------
15,954,400
Food Products--1.1%
Bunge Ltd. 98,500 5,549,490
Health Care Providers & Services--1.8%
Sierra Health Services, Inc. (a) 95,900 4,114,110
WellPoint, Inc. (a) 60,900 4,714,269
-------------
8,828,379
Health Care Technology--1.2%
Cerner Corp. (a) 130,000 5,987,800
Hotels, Restaurants & Leisure--0.9%
Starbucks Corp. (a) 137,400 4,260,774
Household Products--1.3%
The Procter & Gamble Co. 100,900 6,245,710
IT Services--1.0%
Cognizant Technology Solutions Corp. (a) 71,300 4,984,583
Internet Software & Services--1.9%
Google, Inc. Class A (a) 13,000 4,920,890
Yahoo!, Inc. (a) 160,900 4,637,138
-------------
9,558,028
Machinery--2.3%
ITT Corp. 92,000 4,503,400
Joy Global, Inc. 61,600 2,682,064
Trinity Industries, Inc. 127,200 4,243,392
-------------
11,428,856
Shares
Industry Common Stocks Held Value
North America (concluded)
United States (concluded)
Metals & Mining--1.1%
Phelps Dodge Corp. 60,700 $ 5,432,650
Oil, Gas & Consumable Fuels--2.3%
Exxon Mobil Corp. 104,700 7,085,049
Valero Energy Corp. 71,100 4,081,140
-------------
11,166,189
Total Common Stocks in
the United States 145,921,156
Total Common Stocks
in North America--33.1% 163,293,456
Pacific Basin
Australia--20.6%
Biotechnology--1.1%
CSL Ltd. 135,100 5,246,151
Capital Markets--2.8%
Macquarie Bank Ltd. 193,900 9,595,051
Perpetual Trustees Australia Ltd. 80,700 4,487,647
-------------
14,082,698
Chemicals--0.7%
Nufarm Ltd. 165,300 1,350,676
Orica Ltd. 119,400 2,048,811
-------------
3,399,487
Commercial Banks--4.5%
Australia & New Zealand Banking
Group Ltd. 359,100 7,472,680
Commonwealth Bank of Australia 213,000 7,436,701
National Australia Bank Ltd. 263,900 7,319,471
-------------
22,228,852
Construction & Engineering--1.3%
Leighton Holdings Ltd. 425,700 6,439,952
Diversified Financial Services--0.5%
Australian Stock Exchange Ltd. 96,800 2,439,404
Health Care Equipment
& Supplies--0.9%
Cochlear Ltd. 111,400 4,279,053
IT Services--0.8%
Computershare Ltd. 663,400 3,951,523
Insurance--1.9%
QBE Insurance Group Ltd. 516,000 9,401,878
Media--1.1%
Publishing & Broadcasting Ltd. 391,300 5,486,268
Metals & Mining--3.6%
BHP Billiton Ltd. 394,200 8,338,557
Energy Resources of Australia Ltd. 251,300 2,389,221
Iluka Resources Ltd. 248,300 1,386,081
Zinifex Ltd. 597,900 5,433,379
-------------
17,547,238
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Schedule of Investments (continued) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
Pacific Basin (continued)
Australia (concluded)
Transportation Infrastructure--1.4%
Macquarie Infrastructure Group 1,579,200 $ 3,798,763
Sydney Roads Group (a) 526,400 416,055
Transurban Group 501,800 2,678,566
-------------
6,893,384
Total Common Stocks in Australia 101,395,888
China--0.7%
Electrical Equipment--0.3%
Suntech Power Holdings Co. Ltd. (a)(e) 45,300 1,313,700
Oil, Gas & Consumable Fuels--0.4%
China Shenhua Energy Co. Ltd. Class H 1,170,100 2,070,348
Total Common Stocks in China 3,384,048
Hong Kong--5.7%
Communications Equipment--0.9%
ZTE Corp. 1,377,600 4,712,015
Distributors--0.8%
China Resources Enterprise 1,655,000 3,766,805
Electric Utilities--1.6%
Cheung Kong Infrastructure
Holdings Ltd. 2,546,200 8,070,702
Food Products--0.6%
Chaoda Modern Agriculture
Holdings Ltd. 1,661,500 839,643
China Mengniu Dairy Co., Ltd. 1,092,800 1,399,593
Global Bio-Chem Technology
Group Co., Ltd. 2,119,100 705,754
-------------
2,944,990
Marine--0.6%
NWS Holdings Ltd. 1,439,300 2,920,520
Real Estate Management
& Development--0.2%
Midland Holdings Ltd. 2,132,300 948,694
Transportation Infrastructure--1.0%
COSCO Pacific Ltd. 1,106,600 2,481,641
China Merchants Holdings International
Co., Ltd. 796,800 2,346,317
-------------
4,827,958
Total Common Stocks in Hong Kong 28,191,684
India--11.6%
Auto Components--0.2%
Bharat Forge Ltd. 133,400 928,224
Automobiles--0.6%
Tata Motors Ltd. 163,300 2,968,246
Commercial Banks--0.7%
ICICI Bank Ltd. 68,318 877,116
ICICI Bank Ltd. (e) 101,000 2,695,690
-------------
3,572,806
Construction & Engineering--1.2%
Jaiprakash Associates Ltd. 151,100 1,406,284
Larsen & Toubro Ltd. 82,500 4,261,510
-------------
5,667,794
Shares
Industry Common Stocks Held Value
Pacific Basin (continued)
India (concluded)
Electrical Equipment--0.7%
Bharat Heavy Electricals Ltd. 72,100 $ 3,503,129
Hotels, Restaurants & Leisure--0.1%
Indian Hotels Co. Ltd. 25,300 701,561
Household Products--0.7%
Hindustan Lever Ltd. 670,900 3,380,090
IT Services--2.8%
Infosys Technologies Ltd. 126,200 4,898,843
Satyam Computer Services Ltd. 327,100 5,681,987
Tata Consultancy Services Ltd. 155,000 3,324,331
-------------
13,905,161
Industrial Conglomerates--0.2%
Siemens India Ltd. 51,000 1,148,390
Machinery--0.5%
Sterlite Industries India Ltd. 252,200 2,245,602
Media--0.3%
ZEE Telefilms Ltd. 245,600 1,457,186
Metals & Mining--1.1%
Hindalco Industries Ltd. 896,000 3,314,632
Hindustan Zinc Ltd. 165,600 2,004,210
-------------
5,318,842
Oil, Gas & Consumable Fuels--0.8%
Reliance Industries Ltd. 162,200 3,894,578
Pharmaceuticals--0.9%
Cipla Ltd. 325,250 1,754,680
Sun Pharmaceuticals Industries Ltd. 137,200 2,680,464
-------------
4,435,144
Wireless Telecommunication
Services--0.8%
Bharti Tele-Ventures Ltd. (a) 343,700 3,035,949
Reliance Communication
Ventures Ltd. (a) 162,200 1,039,216
-------------
4,075,165
Total Common Stocks in India 57,201,918
Japan--10.0%
Automobiles--0.6%
Toyota Motor Corp. 57,100 3,101,224
Capital Markets--1.0%
Nomura Holdings, Inc. 250,000 4,838,641
Chemicals--1.6%
JSR Corp. 107,000 2,549,900
Mitsubishi Rayon Co., Ltd. 294,000 2,030,439
Toho Tenax Co. Ltd. (a) 147,900 1,012,608
Toray Industries, Inc. 295,000 2,354,265
-------------
7,947,212
Commercial Banks--1.2%
Mizuho Financial Group, Inc. 350 2,831,990
Sumitomo Mitsui Financial Group, Inc. 300 3,376,391
-------------
6,208,381
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Schedule of Investments (concluded) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
Pacific Basin (continued)
Japan (concluded)
Commercial Services &
Supplies--0.3%
Park24 Co. Ltd. 42,700 $ 1,310,654
Construction & Engineering--0.6%
Chiyoda Corp. 131,500 2,887,091
Electrical Equipment--1.0%
Matsushita Electric Works Ltd. 456,000 4,867,732
Food & Staples Retailing--1.1%
Seven & I Holdings Co. Ltd. 150,000 5,307,584
Household Durables--1.0%
Matsushita Electric Industrial Co., Ltd. 229,500 4,911,498
Oil, Gas & Consumable Fuels--1.0%
Inpex Holdings, Inc. (a) 300 2,660,187
Nippon Oil Corp. 301,000 2,289,227
-------------
4,949,414
Specialty Retail--0.6%
Yamada Denki Co., Ltd. 28,500 3,061,773
Total Common Stocks in Japan 49,391,204
South Korea--1.7%
Auto Components--0.3%
Hankook Tire Co. Ltd. 127,200 1,693,354
Automobiles--0.5%
Hyundai Motor Co. 29,100 2,451,482
Shares
Industry Common Stocks Held Value
Pacific Basin (concluded)
South Korea (concluded)
Semiconductors & Semiconductor
Equipment--0.9%
Samsung Electronics Co., Ltd. 6,300 $ 4,258,970
Total Common Stocks
in South Korea 8,403,806
Total Common Stocks in
the Pacific Basin--50.3% 247,968,548
Total Common Stocks
(Cost--$418,054,381)--98.5% 485,436,951
Beneficial
Short-Term Securities Interest
Merrill Lynch Liquidity Series, LLC
Cash Sweep Series I, 5.11% (b)(c) $13,151,905 13,151,905
Merrill Lynch Liquidity Series, LLC
Money Market Series, 5.33% (b)(c)(f) 851,200 851,200
Total Short-Term Investments
(Cost--$14,003,105)--2.9% 14,003,105
Total Investments (Cost--$432,057,486*)--101.4% 499,440,056
Liabilities in Excess of Other Assets--(1.4%) (6,656,249)
-------------
Net Assets--100.0% $ 492,783,807
=============
* The cost and unrealized appreciation (depreciation) of investments
as of August 31, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 432,059,738
===============
Gross unrealized appreciation 79,295,160
Gross unrealized depreciation (11,914,842)
---------------
Net unrealized appreciation $ 67,380,318
===============
(a) Non-income producing security.
(b) 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 $ 9,611,445 $272,929
Merrill Lynch Liquidity Series, LLC
Money Market Series $(6,092,800) $ 25,879
(c) Represents the current yield as of August 31, 2006.
(d) Security, or a portion of security, is on loan.
(e) Depositary receipts.
(f) Security was purchased with the cash proceeds from securities loans.
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.
These industry and geographical classifications are unaudited.
See Notes to Financial Statements.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Statement of Assets and Liabilities
As of August 31, 2006
Assets
Investments in unaffiliated securities, at value (including securities loaned of $835,840)
(identified cost--$418,054,381) $ 485,436,951
Investments in affiliated securities, at value (identified cost--$14,003,105) 14,003,105
Foreign cash (cost--$877,276) 863,805
Cash 518,212
Receivables:
Securities sold $ 3,690,856
Dividends 1,006,726
Capital shares sold 48,582
Securities lending 1,926 4,748,090
---------------
Prepaid expenses 148,814
---------------
Total assets 505,718,977
---------------
Liabilities
Collateral on securities loaned, at value 851,200
Deferred foreign capital gain tax 307,727
Payables:
Securities purchased 9,991,980
Capital shares redeemed 976,284
Investment adviser 270,316
Distributor 149,522
Other affiliates 77,001 11,465,103
---------------
Accrued expenses and other liabilities 311,140
---------------
Total liabilities 12,935,170
---------------
Net Assets
Net assets $ 492,783,807
===============
Net Assets Consist of
Class A Shares of Common Stock, $.10 par value, 100,000,000 shares authorized $ 1,812,493
Class B Shares of Common Stock, $.10 par value, 300,000,000 shares authorized 516,793
Class C Shares of Common Stock, $.10 par value, 100,000,000 shares authorized 469,058
Class I Shares of Common Stock, $.10 par value, 100,000,000 shares authorized 1,137,473
Class R Shares of Common Stock, $.10 par value, 300,000,000 shares authorized 11,988
Paid-in capital in excess of par 869,347,397
Undistributed investment income--net $ 101,750
Accumulated realized capital losses--net (447,691,367)
Unrealized appreciation--net 67,078,222
---------------
Total accumulated losses--net (380,511,395)
---------------
Net Assets $ 492,783,807
===============
Net Asset Value
Class A--Based on net assets of $227,791,617 and 18,124,926 shares outstanding $ 12.57
===============
Class B--Based on net assets of $62,389,792 and 5,167,929 shares outstanding $ 12.07
===============
Class C--Based on net assets of $56,566,949 and 4,690,581 shares outstanding $ 12.06
===============
Class I--Based on net assets of $144,560,405 and 11,374,734 shares outstanding $ 12.71
===============
Class R--Based on net assets of $1,475,044 and 119,884 shares outstanding $ 12.30
===============
See Notes to Financial Statements.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Statement of Operations
For the Year Ended August 31, 2006
Investment Income
Dividends (net of $329,053 foreign withholding tax) $ 8,674,748
Interest from affiliates 272,929
Securities lending--net 25,879
---------------
Total income 8,973,556
---------------
Expenses
Investment advisory fees $ 3,737,026
Account maintenance and distribution fees--Class B 1,089,410
Account maintenance and distribution fees--Class C 572,418
Account maintenance fees--Class A 489,908
Transfer agent fees--Class A 381,869
Transfer agent fees--Class B 280,324
Transfer agent fees--Class I 276,024
Custodian fees 264,356
Accounting services 217,013
Transfer agent fees--Class C 139,470
Professional fees 77,613
Printing and shareholder reports 73,237
Directors' fees and expenses 67,016
Registration fees 65,812
Pricing fees 9,997
Account maintenance and distribution fees--Class R 6,048
Transfer agent fees--Class R 2,492
Other 38,426
---------------
Total expenses 7,788,459
---------------
Investment income--net 1,185,097
---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments (including $712,017 foreign capital gain tax)--net 82,434,787
Options written--net 56,381
Foreign currency transactions--net (486,211) 82,004,957
---------------
Change in unrealized appreciation/depreciation on:
Investments (including $136,012 deferred foreign capital gain credit)--net 4,969,180
Foreign currency transactions--net 87,903 5,057,083
--------------- ---------------
Total realized and unrealized gain--net 87,062,040
---------------
Net Increase in Net Assets Resulting from Operations $ 88,247,137
===============
See Notes to Financial Statements.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Statements of Changes in Net Assets
For the Year Ended
August 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 1,185,097 $ 4,840,743
Realized gain--net 82,004,957 90,531,489
Change in unrealized appreciation/depreciation--net 5,057,083 20,108,057
--------------- ---------------
Net increase in net assets resulting from operations 88,247,137 115,480,289
--------------- ---------------
Dividends to Shareholders
Investment income--net:
Class A (1,202,472) (18,378)
Class B (867,598) --
Class C (259,084) --
Class I (1,768,759) (328,352)
Class R (12,520) (303)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (4,110,433) (347,033)
--------------- ---------------
Capital Share Transactions
Net decrease in net assets derived from capital share transactions (67,333,645) (158,083,866)
--------------- ---------------
Redemption Fee
Redemption fee 214 32
--------------- ---------------
Net Assets
Total increase (decrease) in net assets 16,803,273 (42,950,578)
Beginning of year 475,980,534 518,931,112
--------------- ---------------
End of year* $ 492,783,807 $ 475,980,534
=============== ===============
* Undistributed investment income--net $ 101,750 $ 4,225,314
=============== ===============
See Notes to Financial Statements.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Financial Highlights
The following per share data Class A Class B
and ratios have been derived
from information provided in For the Year Ended August 31, For the Year Ended August 31,
the financial statements. 2006 2005 2004 2003 2002 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning
of year $ 10.60 $ 8.47 $ 7.51 $ 6.95 $ 9.44 $ 10.17 $ 8.19 $ 7.32 $ 6.83 $ 9.35
---------------------------------------------- ----------------------------------------------
Investment income (loss)--net** .06 .13 .07 .03 (.02) (.06) .05 --+++ (.03) (.08)
Realized and unrealized
gain (loss)--net 2.05++ 2.00++ .89++ .53 (2.47) 2.00++ 1.93++ .87++ .52 (2.44)
---------------------------------------------- ----------------------------------------------
Total from investment operations 2.11 2.13 .96 .56 (2.49) 1.94 1.98 .87 .49 (2.52)
---------------------------------------------- ----------------------------------------------
Less dividends from investment
income--net (.14) --+ -- -- -- (.04) -- -- -- --
---------------------------------------------- ----------------------------------------------
Net asset value, end of year $ 12.57 $ 10.60 $ 8.47 $ 7.51 $ 6.95 $ 12.07 $ 10.17 $ 8.19 $ 7.32 $ 6.83
============================================== ==============================================
Total Investment Return*
Based on net asset value
per share 20.13% 25.17% 12.78% 8.06% (26.38%) 19.18% 24.18% 11.89% 7.17% (26.95%)
============================================== ==============================================
Ratios to Average Net Assets
Expenses 1.35% 1.38% 1.37% 1.42% 1.31% 2.18% 2.16% 2.16% 2.22% 2.09%
============================================== ==============================================
Investment income (loss)--net .53% 1.35% .87% .40% (.18%) (.56%) .56% .05% (.43%) (.99%)
============================================== ==============================================
Supplemental Data
Net assets, end of year
(in thousands) $ 227,792 $ 93,408 $98,519 $110,092 $130,310 $ 62,390 $212,353 $252,691 $327,483 $456,393
============================================== ==============================================
Portfolio turnover 80.33% 108.95% 71.91% 121.00% 105.73% 80.33% 108.95% 71.91% 121.00% 105.73%
============================================== ==============================================
* Total investment return excludes the effects of sales charges.
** Based on average shares outstanding.
+ Amount is less than $(.01) per share.
++ Includes redemption fee, which is less than $.01 per share.
+++ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Financial Highlights (continued)
The following per share data Class C Class I
and ratios have been derived
from information provided in For the Year Ended August 31, For the Year Ended August 31,
the financial statements. 2006 2005 2004 2003 2002 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning
of year $ 10.17 $ 8.19 $ 7.32 $ 6.83 $ 9.36 $ 10.72 $ 8.56 $ 7.58 $ 7.00 $ 9.48
---------------------------------------------- ----------------------------------------------
Investment income (loss)--net** (.04) .05 --+ (.03) (.08) .09 .16 .09 .04 --+
Realized and unrealized
gain (loss)--net 1.98++ 1.93++ .87++ .52 (2.45) 2.07++ 2.03++ .89++ .54 (2.48)
---------------------------------------------- ----------------------------------------------
Total from investment operations 1.94 1.98 .87 .49 (2.53) 2.16 2.19 .98 .58 (2.48)
---------------------------------------------- ----------------------------------------------
Less dividends from investment
income--net (.05) -- -- -- -- (.17) (.03) -- -- --
---------------------------------------------- ----------------------------------------------
Net asset value, end of year $ 12.06 $ 10.17 $ 8.19 $ 7.32 $ 6.83 $ 12.71 $ 10.72 $ 8.56 $ 7.58 $ 7.00
============================================== ==============================================
Total Investment Return*
Based on net asset value
per share 19.15% 24.18% 11.89% 7.17% (27.03%) 20.41% 25.58% 12.93% 8.29% (26.16%)
============================================== ==============================================
Ratios to Average Net Assets
Expenses 2.16% 2.18% 2.18% 2.24% 2.11% 1.12% 1.13% 1.13% 1.16% 1.06%
============================================== ==============================================
Investment income (loss)--net (.36%) .55% .05% (.43%) (.99%) .71% 1.60% 1.05% .63% .04%
============================================== ==============================================
Supplemental Data
Net assets, end of year
(in thousands) $ 56,567 $ 55,507 $ 60,771 $ 72,249 $ 95,117 $144,560 $114,007 $106,785 $133,096 $ 55,525
============================================== ==============================================
Portfolio turnover 80.33% 108.95% 71.91% 121.00% 105.73% 80.33% 108.95% 71.91% 121.00% 105.73%
============================================== ==============================================
* Total investment return excludes 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.
+ Amount is less than $.01 per share.
++ Includes redemption fee, which is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Financial Highlights (concluded)
Class R
For the Period
January 3,
2003++ to
The following per share data and ratios have been derived For the Year Ended August 31, August 31,
from information provided in the financial statements. 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 10.42 $ 8.36 $ 7.39 $ 6.50
---------- ---------- ---------- ----------
Investment income--net** .03 .06 .08 .06
Realized and unrealized gain--net 2.00++++ 2.01++++ .89++++ .83
---------- ---------- ---------- ----------
Total from investment operations 2.03 2.07 .97 .89
---------- ---------- ---------- ----------
Less dividends from investment income--net (.15) (.01) -- --
---------- ---------- ---------- ----------
Net asset value, end of period $ 12.30 $ 10.42 $ 8.36 $ 7.39
========== ========== ========== ==========
Total Investment Return
Based on net asset value per share 19.78% 24.81% 13.13% 13.69%+++
========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 1.62% 1.79% 1.56% 1.64%*
========== ========== ========== ==========
Investment income--net .23% .99% 1.36% .66%*
========== ========== ========== ==========
Supplemental Data
Net assets, end of period (in thousands) $ 1,475 $ 705 $ 166 --+++++
========== ========== ========== ==========
Portfolio turnover 80.33% 108.95% 71.91% 121.00%
========== ========== ========== ==========
* Annualized.
** Based on average shares outstanding.
++ Commencement of operations.
++++ Includes redemption fee, which is less than $.01 per share.
+++ Aggregate total investment return.
+++++ Amount is less than $1,000.
See Notes to Financial Statements.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Notes to Financial Statements
1. Significant Accounting Policies:
On September 29, 2006, Merrill Lynch Global Growth Fund, Inc. was renamed
BlackRock Global Growth Fund, Inc. (the "Fund"). The Fund is registered under
the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may
require the use of management accruals and estimates. Actual results may
differ from these estimates. The Fund offers multiple classes of shares. 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 have voting rights with respect to material changes to the Class
A distribution plan). Income, expenses (other than expenses attributable to a
specific class) and realized and unrealized gains and losses are allocated
daily to each class based on its relative net assets. The following is a
summary of significant accounting policies followed by the Fund.
(a) Valuation of investments--Equity securities that are held by the Fund that
are traded on stock exchanges or the Nasdaq National Market are valued at the
last sale price or official close price on the exchange, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price for long positions, and at the last available
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 over-the-counter ("OTC")
market, Nasdaq Small Cap or Bulletin Board are valued at the last available
bid price or yield equivalent obtained from one or more dealers or pricing
services approved by the Board of Directors of the Fund. Short positions
traded in the OTC market are valued at the last available 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.
Options written are valued at the last sale price in the case of exchange-
traded options or, in the case of options traded in the OTC market, the last
asked price. Options purchased are valued at their last sale price in the case
of exchange-traded options or, in the case of options traded in the OTC
market, the last bid price. Swap agreements are valued based upon quoted fair
valuations received daily by the Fund from a pricing service or counterparty.
Financial futures contracts and options thereon, which are traded on
exchanges, are valued at their last sale price as of the close of such
exchanges. Obligations with remaining maturities of 60 days or less are valued
at amortized cost unless the Investment Adviser believes that this method no
longer produces fair valuations. Valuations 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. The Fund
employs pricing services to provide certain securities prices for the Fund.
Securities and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the direction
of the Board of Directors of the Fund, including valuations furnished by the
pricing services retained by the Fund, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are
reviewed by the officers of the Fund under the general supervision of the
Fund's Board of Directors. Such valuations and procedures will be reviewed
periodically by the Board of Directors of the Fund.
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. As of October
2, 2006, foreign currency exchange rates will be determined at 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 will 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.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 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.
* Options--The Fund may write and purchase call and put options. When the Fund
writes an option, an amount equal to the premium received by the Fund is
reflected as an asset and an equivalent liability. The amount of the liability
is subsequently marked-to-market to reflect the current market value of the
option written. When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or deducted from)
the basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to the
extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward foreign exchange contracts--The Fund may enter into forward foreign
exchange contracts as a hedge against either specific transactions or
portfolio positions. The contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value at the time it was opened and the value at the
time it was closed.
* Foreign currency options and futures--The Fund may also purchase or sell
listed or 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.
* Financial futures contracts--The Fund may purchase or sell financial futures
contracts and options on such financial futures contracts. Financial futures
contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a contract,
the Fund deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to the
contract, the Fund agrees to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as variation margin and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
(d) Income taxes--It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Notes to Financial Statements (continued)
(e) Recent accounting pronouncement--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48") entitled
"Accounting for Uncertainty in Income Taxes - an interpretation of FASB
Statement No. 109." FIN 48 prescribes the minimum recognition threshold a tax
position must meet in connection with accounting for uncertainties in income
tax positions taken or expected to be taken by an entity including mutual
funds before being measured and recognized in the financial statements.
Adoption of FIN 48 is required for fiscal years beginning after December 15,
2006. The impact on the fund's financial statements, if any, is currently
being assessed.
(f) 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.
(g) Prepaid registration fees--Prepaid registration fees are charged to
expense as the related shares are issued.
(h) Dividends and distributions--Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates.
(i) 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.
(j) Reclassification--U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the
current year, $1,198,228 has been reclassified between undistributed net
investment income and accumulated net realized capital losses as a result of
permanent differences attributable to the characterization of expenses and
foreign currency transactions. This reclassification has no effect on net
assets or net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Merrill Lynch
Investment Managers, L.P. ("MLIM"). The general partner of MLIM is Princeton
Services, Inc. ("PSI"), an indirect, wholly owned subsidiary of Merrill Lynch
& Co., Inc. ("ML & Co."), which is the limited partner. The Fund has also
entered into a Distribution Agreement and Distribution Plans with FAM
Distributors, Inc. ("FAMD" or the "Distributor"), which is a wholly owned
subsidiary of Merrill Lynch Group, Inc.
MLIM is responsible for the management of the Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Fund. For such services, the Fund pays a
monthly fee based upon the average daily value of the Fund's net assets at an
annual rate of .75% of the average daily net assets not exceeding $1.5 billion
and .725% of the average daily net assets in excess of $1.5 billion. MLIM has
entered into a Sub-Advisory Agreement with Merrill Lynch Asset Management U.K.
Limited ("MLAM U.K."), an affiliate of MLIM, pursuant to which MLAM U.K.
provides investment advisory services to MLIM with respect to the Fund. There
is no increase in the aggregate fees paid by the Fund for these services.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Notes to Financial Statements (continued)
Pursuant to the Distribution Plans adopted by the Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Fund pays the Distributor
ongoing account maintenance and distribution fees. The fees are accrued daily
and paid monthly at annual rates based upon the average daily net assets of
the shares as follows:
Account
Maintenance Distribution
Fee Fee
Class A .25% --
Class B .25% .75%
Class C .25% .75%
Class R .25% .25%
Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S"), 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 year ended August 31, 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 $ 2,432 $ 31,656
Class I $ 37 $ 520
For the year ended August 31, 2006, MLPF&S received contingent deferred sales
charges of $26,991 and $1,866 relating to transactions in Class B and Class C
Shares, respectively.
The Fund has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to MLPF&S or its
affiliates. 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 year ended August 31, 2006, MLIM, LLC received
$10,749 in securities lending agent fees.
In addition, MLPF&S received $78,110 in commissions on the execution of
portfolio security transactions for the Fund for the year ended August 31,
2006.
For the year ended August 31, 2006, the Fund reimbursed MLIM $10,003 for
certain accounting services.
Financial Data Services, Inc. ("FDS"), a wholly owned subsidiary of ML & Co.,
is the Fund's transfer agent.
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. This transaction will close
on September 29, 2006.
On August 31, 2006, shareholders of the Fund approved a new Investment
Advisory Agreement with BlackRock Advisors, Inc. (the "Manager"), a wholly
owned subsidiary of BlackRock, Inc. BlackRock Advisors, Inc. was reorganized
into BlackRock Advisors LLC. The new advisory agreement will become effective
on September 29, 2006, and the investment advisory fee is unchanged. In
addition, the Manager has entered into a sub-advisory agreement with BlackRock
Investment Management, LLC, an affiliate, under which the Manager pays the Sub-
Adviser, for services it provides, a fee equal to 74% of the management fee
paid to the Manager.
In connection with the closing, the Fund's Transfer Agent will become PFPC,
Inc., an affiliate of the Fund. In addition, BlackRock Distributors, Inc., an
affiliate of BlackRock, Inc., will become an additional distributor. MLIM,
LLC, the security lending agent, will become BlackRock Investment Management,
LLC.
During the year ended August 31, 2006, 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.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for
the year ended August 31, 2006 were $394,933,331 and $459,383,652,
respectively.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Notes to Financial Statements (continued)
Transactions in call options written for the year ended August 31, 2006
were as follows:
Number of Premiums
Contracts Received
Outstanding call options written,
beginning of period -- $ --
Options written 117 56,381
Options expired (117) (56,381)
--------------- ---------------
Outstanding call options written,
end of period -- $ --
=============== ===============
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions was
$67,333,645 and $158,083,866 for the years ended August 31, 2006 and
August 31, 2005, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Year Dollar
Ended August 31, 2006 Shares Amount
Shares sold 670,623 $ 8,014,274
Automatic conversion of shares 12,740,197 139,976,542
Shares issued to shareholders in
reinvestment of dividends 98,021 1,038,037
--------------- ---------------
Total issued 13,508,841 149,028,853
Shares redeemed (4,197,434) (49,939,944)
--------------- ---------------
Net increase 9,311,407 $ 99,088,909
=============== ===============
Class A Shares for the Year Dollar
Ended August 31, 2005 Shares Amount
Shares sold 447,117 $ 4,437,307
Automatic conversion of shares 1,143,256 11,239,018
Shares issued to shareholders in
reinvestment of dividends 1,629 15,927
--------------- ---------------
Total issued 1,592,002 15,692,252
Shares redeemed (4,414,664) (43,470,746)
--------------- ---------------
Net decrease (2,822,662) $ (27,778,494)
=============== ===============
Class B Shares for the Year Dollar
Ended August 31, 2006 Shares Amount
Shares sold 496,259 $ 5,638,554
Shares issued to shareholders in
reinvestment of dividends 68,120 697,544
--------------- ---------------
Total issued 564,379 6,336,098
--------------- ---------------
Shares redeemed (3,080,537) (34,147,393)
Automatic conversion of shares (13,194,130) (139,976,542)
--------------- ---------------
Total redeemed (16,274,667) (174,123,935)
--------------- ---------------
Net decrease (15,710,288) $ (167,787,837)
=============== ===============
Class B Shares for the Year Dollar
Ended August 31, 2005 Shares Amount
Shares sold 587,073 $ 5,539,334
--------------- ---------------
Shares redeemed (9,385,041) (88,290,410)
Automatic conversion of shares (1,186,494) (11,239,018)
--------------- ---------------
Total redeemed (10,571,535) (99,529,428)
--------------- ---------------
Net decrease (9,984,462) $ (93,990,094)
=============== ===============
Class C Shares for the Year Dollar
Ended August 31, 2006 Shares Amount
Shares sold 393,750 $ 4,525,444
Shares issued to shareholders in
reinvestment of dividends 20,949 214,314
--------------- ---------------
Total issued 414,699 4,739,758
Shares redeemed (1,183,250) (13,306,797)
--------------- ---------------
Net decrease (768,551) $ (8,567,039)
=============== ===============
Class C Shares for the Year Dollar
Ended August 31, 2005 Shares Amount
Shares sold 153,023 $ 1,456,895
Shares redeemed (2,117,704) (20,000,455)
--------------- ---------------
Net decrease (1,964,681) $ (18,543,560)
=============== ===============
Class I Shares for the Year Dollar
Ended August 31, 2006 Shares Amount
Shares sold 3,915,075 $ 47,655,298
Shares issued to shareholders in
reinvestment of dividends 150,886 1,611,469
--------------- ---------------
Total issued 4,065,961 49,266,767
Shares redeemed (3,327,538) (39,927,624)
--------------- ---------------
Net increase 738,423 $ 9,339,143
=============== ===============
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Notes to Financial Statements (concluded)
Class I Shares for the Year Dollar
Ended August 31, 2005 Shares Amount
Shares sold 1,960,452 $ 19,328,613
Shares issued to shareholders in
reinvestment of dividends 30,133 297,417
--------------- ---------------
Total issued 1,990,585 19,626,030
Shares redeemed (3,824,180) (37,876,778)
--------------- ---------------
Net decrease (1,833,595) $ (18,250,748)
=============== ===============
Class R Shares for the Year Dollar
Ended August 31, 2006 Shares Amount
Shares sold 71,002 $ 813,712
Shares issued to shareholders in
reinvestment of dividends 1,205 12,520
--------------- ---------------
Total issued 72,207 826,232
Shares redeemed (20,036) (233,053)
--------------- ---------------
Net increase 52,171 $ 593,179
=============== ===============
Class R Shares for the Year Dollar
Ended August 31, 2005 Shares Amount
Shares sold 67,626 $ 670,119
Shares issued to shareholders in
reinvestment of dividends 32 303
--------------- ---------------
Total issued 67,658 670,422
Shares redeemed (19,765) (191,392)
--------------- ---------------
Net increase 47,893 $ 479,030
=============== ===============
The Fund generally charges a 2% redemption fee on the proceeds (calculated at
market value) of a redemption (either by sale or exchange) of Fund shares
made within 30 days of purchase. The redemption fee is paid to the Fund and
is intended to offset the trading costs, market impact and other costs
associated with short-term trading into and out of the Fund.
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by MLIM and its affiliates,
is a party to a $500,000,000 credit agreement with a group of lenders, which
expires November 23, 2006. 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 year
ended August 31, 2006.
6. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended August
31, 2006 and August 31, 2005 was as follows:
8/31/2006 8/31/2005
Distributions paid from:
Ordinary income $ 4,110,433 $ 347,033
--------------- ---------------
Total taxable distributions $ 4,110,433 $ 347,033
=============== ===============
As of August 31, 2006, the components of accumulated losses on a tax basis
were as follows:
Undistributed ordinary income--net $ 101,750
Undistributed long-term capital gains--net --
---------------
Total undistributed earnings--net 101,750
Capital loss carryforward (447,689,115)*
Unrealized gains--net 67,075,970**
---------------
Total accumulated losses--net $ (380,511,395)
===============
* On August 31, 2006, the Fund had a net capital loss carryforward
of $447,689,115, of which $7,928,271 expires in 2008, $3,964,136
expires in 2009, $83,247,809 expires in 2010 and $352,548,899
expires in 2011. Subject to limitations, this amount will be available
to offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized
losses is attributable primarily to the tax deferral of losses on
wash sales.
7. Share Class Redesignation:
Effective October 2, 2006, Class A, Class B, Class C and Class I Shares
will be redesignated Investor A, Investor B, Investor C and Institutional
Shares, respectively. Class R Shares will remain as Class R Shares.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of
BlackRock Global Growth Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock Global Growth Fund, Inc.,
(formerly Merrill Lynch Global Growth Fund, Inc.) as of August 31, 2006, and
the related statement of operations, the statement of changes in net assets,
and the financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit. The financial
statements of the Fund for the year ended August 31, 2005 and the financial
highlights for each of the four years in the period ended August 31, 2005 were
audited by other auditors whose report, dated October 14, 2005, expressed an
unqualified opinion on those financial statements and financial highlights.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Fund is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Fund's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of August 31, 2006, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock Global Growth Fund, Inc. as of August 31, 2006, the results of its
operations, the changes in its net assets, and the financial highlights for
the year then ended, in conformity with U.S. generally accepted accounting
principles.
Deloitte & Touche LLP
Princeton, New Jersey
October 19, 2006
Important Tax Information (unaudited)
The following information is provided with respect to the ordinary income
distribution paid by BlackRock Global Growth Fund, Inc. to shareholders of
record on October 11, 2005:
Qualified Dividend Income for Individuals 100%*
Dividends Qualifying for the Dividends Received Deduction for Corporations 100%*
Foreign Source Income 61%*
Foreign Taxes Paid Per Share $.011588
* Expressed as a percentage of the cash distribution grossed-up for foreign taxes.
The foreign taxes paid represent taxes incurred by the Fund on income received
from foreign sources. Foreign taxes paid may be included in taxable income
with an offsetting deduction from gross income or may be taken as a credit for
taxes paid to foreign governments. You should consult your tax adviser
regarding the appropriate treatment of foreign taxes paid.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Disclosure of Investment Advisory Agreement
The Board of Directors met in March 2006 to consider approval of the Fund's
management agreement with Merrill Lynch Investment Managers, L.P. ("MLIM"),
the Fund's manager at that time, and the sub-advisory agreement on behalf of
the Fund between MLIM and Merrill Lynch Asset Management U.K. Limited, an
affiliate.
Activities and Composition of the Board of Directors
All but one member of the Board of Directors is an independent director whose
only association with MLIM or other Merrill Lynch affiliates is as a director
of the Fund and as a trustee or director of certain other funds advised by
MLIM or its affiliates. The Chairman of the Board is also an independent
director. New director nominees are chosen by a Nominating Committee comprised
of independent directors. All independent directors also are members of the
Board's Audit Committee, and the independent directors meet in executive
session at each in-person Board meeting. The Board and the Audit Committee
meet in person for at least two days each quarter and conduct other in-person
and telephone meetings throughout the year, some of which are formal Board
meetings and some of which are informational meetings. The independent counsel
to the independent directors attends all in-person Board and Audit Committee
meetings and other meetings at the independent directors' request.
MLIM Management Agreement--Matters Considered by the Board
Every year, the Board reviews and considers approval of the Fund's management
agreement and any sub-advisory agreement. The Board assesses the nature, scope
and quality of the services provided to the Fund by the personnel of the
manager, the sub-adviser and their affiliates, including administrative
services, shareholder services, oversight of fund accounting, marketing
services and assistance in meeting legal and regulatory requirements. The
Board also receives and assesses information regarding the services provided
to the Fund by certain unaffiliated service providers.
At various times throughout the year, the Board also considers a range of
information in connection with its oversight of the services provided by the
manager and its affiliates, including the sub-adviser. Among the matters
considered are: (a) fees (in addition to management fees) paid to the manager
and its affiliates by the Fund, such as transfer agency fees and fees for
marketing and distribution; (b) Fund operating expenses paid to third parties;
(c) the resources devoted to and compliance reports relating to the Fund's
investment objective, policies and restrictions, and its compliance with its
Code of Ethics and compliance policies and procedures; and (d) the nature,
cost and character of non-investment management services provided by the
manager and its affiliates.
The Board noted its view of MLIM as one of the most experienced global asset
management firms and considered the overall services provided by MLIM to be of
high quality. The Board also noted its view of MLIM as financially sound and
well managed and noted MLIM's affiliation with one of America's largest
financial firms. The Board works closely with the manager in overseeing the
manager's efforts to achieve good performance. As part of this effort, the
Board discusses portfolio manager effectiveness and, when performance is not
satisfactory, discusses with the manager taking steps such as changing
investment personnel.
Annual Consideration of Approval by the Board of Directors
In the period prior to the Board meeting to consider renewal of the management
agreement and any sub-advisory agreement, the Board requests and receives
materials specifically relating to the management agreement and/or the sub-
advisory agreement. These materials include (a) information compiled by Lipper
Inc. ("Lipper") on the fees and expenses and the investment performance of the
Fund as compared to a comparable group of funds as classified by Lipper; (b)
sales and redemption data for the Fund; (c) a discussion by the Fund's
portfolio management team regarding investment strategies used by the Fund
during its most recent fiscal year; (d) information on the profit-ability to
the manager and its affiliates of the management agreement, the sub-advisory
agreement and certain other relationships with the Fund; and (e) information
provided by the manager concerning management fees charged to other clients,
such as retail insurance funds, under similar investment mandates. Since the
sub-advisory services were provided by an affiliate of MLIM, and no additional
fee is paid for these services, the Board considered the existing sub-advisory
agreement and the management agreement between the Fund and MLIM (the "MLIM
Management Agreement") together. The Board also considers other matters it
deems important to the approval process, such as payments made to the manager
or its affiliates relating to the distribution of Fund shares, services
related to the valuation and pricing of Fund portfolio holdings, allocation of
Fund brokerage fees (including the related benefits to the manager of "soft
dollars"), the Fund's portfolio turnover statistics, and direct and indirect
benefits to the manager, the sub-adviser and their affiliates from their
relationship with the Fund. The Board did not identify any particular
information as controlling, and each member of the Board may have attributed
different weights to the various items considered.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Certain Specific Renewal Data
In connection with the most recent renewal of the MLIM Management Agreement
and sub-advisory agreement in March 2006, the independent directors' and
Board's review included the following:
Services Provided by the Manager--The Board reviewed the nature, extent and
quality of services provided by MLIM and the sub-adviser, including the
management services and the resulting performance of the Fund. The Board
focused primarily on MLIM's investment advisory services and the Fund's
investment performance. The Board compared Fund performance - both including
and excluding the effects of the Fund's fees and expenses - to the performance
of a comparable group of mutual funds and the performance of a relevant index
or combination of indexes. While the Board reviews performance data at least
quarterly, consistent with the manager's investment goals, the Board attaches
more importance to performance over relatively long periods of time, typically
three to five years. For the periods ended November 30, 2005, the Fund's
performance after fees and expenses ranked in the second quintile of a
comparable group of funds for the one-year period, in the third quintile for
the three-year period and in the fifth quintile for the five-year period.
Considering these factors, the Board concluded that the Fund's performance
supported the continuation of the MLIM Management Agreement.
MLIM's Personnel and Investment Process--The Board reviewed the Fund's
investment objectives and strategies. The Board discussed with MLIM's senior
management responsible for investment operations and the senior management of
MLIM's equity investing group the strategies being used to achieve the stated
objectives. Among other things, the Board considered the size, education and
experience of MLIM's investment staff, its use of technology, and MLIM's
approach to training and retaining portfolio managers and other research,
advisory and management personnel. The Board also reviewed MLIM's compensation
policies and practices with respect to the Fund's portfolio manager. The Board
also considered the experience of the Fund's portfolio manager and associate
portfolio manager at that time, Mr. Fuller and Mr. Burke. The Board considered
the extensive experience of MLIM and its investment staff in analyzing and
managing the types of investments used by the Fund. The Board concluded that
the Fund benefits from that experience.
Management Fees and Other Expenses--The Board reviews the Fund's contractual
management fee rate and actual management fee rate as a percentage of total
assets at common asset levels - the actual rate includes advisory and
administrative service fees and the effects of any fee waivers - compared to
the other funds in its Lipper category. It also compares the Fund's total
expenses to those of other comparable funds. The Board considered the services
provided to and the fees charged by MLIM to other types of clients with
similar investment mandates, such as a retail insurance fund. The Board noted
that the fees charged for the retail insurance fund were comparable to those
being charged to the Fund. The Board noted that the Fund's actual and
contractual management fees and actual total expenses including investment-
related expenses were lower than the medians of fees and expenses of
comparable funds as classified by Lipper. The Board concluded that the Fund's
management fee rate and overall expense ratio were acceptable compared to
those of other comparable funds.
Profitability--The Board considers the cost of the services provided to the
Fund by the manager and the manager's and its affiliates' profits relating to
the management and distribution of the Fund and the funds advised by the
manager and its affiliates. As part of its analysis, the Board reviewed MLIM's
methodology in allocating its costs to the management of the Fund and
concluded that there was a reasonable basis for the allocation. The Board
concluded that the profits of MLIM and its affiliates were acceptable in
relation to the nature and quality of services provided and given the level of
fees and expenses overall.
Economies of Scale--The Board considered the extent to which economies of
scale might be realized as the assets of the Fund increase and whether there
should be changes in the management fee rate or structure in order to enable
the Fund to participate in these economies of scale. The Board concluded that
the Fund's management fee, which includes a breakpoint, appropriately allows
shareholders to participate in the benefits of economies of scale.
Conclusion
After the independent Directors deliberated in executive session, the entire
Board, including all of the independent Directors, approved the renewal of the
existing MLIM Management Agreement and sub-advisory agreement, concluding that
the advisory fee was reasonable in relation to the services provided and that
a contract renewal was in the best interests of the shareholders.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Disclosure of New Investment Advisory Agreement
New BlackRock Investment Advisory Agreement--Matters Considered by the Board
In connection with the combination of Merrill Lynch's investment advisory
business, including Merrill Lynch Investment Managers, L.P. (the "Previous
Investment Adviser"), with that of BlackRock, Inc. ("BlackRock") to create a
new independent company ("New BlackRock") (the "Transaction"), the Fund's
Board of Directors considered and approved a new investment advisory agreement
(the "BlackRock Investment Advisory Agreement") between the Fund and BlackRock
Advisors, LLC ("BlackRock Advisors"). The Fund's shareholders subsequently
approved the BlackRock Investment Advisory Agreement and it became effective
on September 29, 2006, replacing the investment advisory agreement with the
Previous Investment Adviser (the "Previous Investment Advisory Agreement").
The Board discussed the BlackRock Investment Advisory Agreement at telephonic
and in-person meetings held during April and May 2006. The Board, including
the independent directors, approved the BlackRock Investment Advisory
Agreement at an in-person meeting held on May 8, 2006.
To assist the Board in its consideration of the BlackRock Investment Advisory
Agreement, BlackRock provided materials and information about BlackRock,
including its financial condition and asset management capabilities and
organization, and Merrill Lynch provided materials and information about the
Transaction. The independent directors, through their independent legal
counsel, also requested and received additional information from Merrill Lynch
and BlackRock in connection with their consideration of the BlackRock
Investment Advisory Agreement. The additional information was provided in
advance of the May 8, 2006 meeting. In addition, the independent directors
consulted with their counsel and Fund counsel on numerous occasions,
discussing, among other things, the legal standards and certain other
considerations relevant to the directors' deliberations.
At the Board meetings, the directors discussed with Merrill Lynch management
and certain BlackRock representatives the Transaction, its strategic rationale
and BlackRock's general plans and intentions regarding the Fund. At these
Board meetings, representatives of Merrill Lynch and BlackRock made
presentations to and responded to questions from the Board. The directors also
inquired about the plans for and anticipated roles and responsibilities of
certain employees and officers of the Previous Investment Adviser, and of its
affiliates, to be transferred to BlackRock in connection with the Transaction.
The independent directors of the Board also conferred separately and with
their counsel about the Transaction and other matters related to the
Transaction on a number of occasions, including in connection with the April
and May 2006 meetings. After the presentations and after reviewing the written
materials provided, the independent directors met in executive sessions with
their counsel to consider the BlackRock Investment Advisory Agreement.
In connection with the Board's review of the BlackRock Investment Advisory
Agreement, Merrill Lynch and/or BlackRock advised the directors about a
variety of matters. The advice included the following, among other matters:
* that there was not expected to be any diminution in the nature, quality
and extent of services provided to the Fund and its shareholders by
BlackRock Advisors, including compliance services;
* that operation of New BlackRock as an independent investment management
firm would enhance its ability to attract and retain talented
professionals;
* that the Fund was expected to benefit from having access to BlackRock's
state of the art technology and risk management analytic tools, including
investment tools, provided under the BlackRock Solutions (R) brand name;
* that BlackRock had no present intention to alter any applicable expense
waivers or reimbursements that were currently in effect and, while it
reserved the right to do so in the future, it would seek the approval of
the Board before making any changes;
* that BlackRock and Merrill Lynch would enter into an agreement, for an
initial three-year period and automatically renewable from year to year
thereafter, in connection with the Transaction under which Merrill Lynch-
affiliated broker-dealers would continue to offer the Fund as an
investment product;
* that BlackRock Advisors would have substantially the same access to the
Merrill Lynch sales force when distributing shares of the Fund as was
currently being provided to the Previous Investment Adviser and that other
arrangements between the Previous Investment Adviser and Merrill Lynch
sales channels would be preserved;
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
* that the Fund would have access to BlackRock's network of third party
brokers, retirement plan platforms and registered investment advisers;
* that in connection with the Transaction, Merrill Lynch and BlackRock had
agreed to conduct, and use reasonable best efforts to cause their
respective affiliates to conduct, their respective businesses in
compliance with the conditions of Section 15(f) of the Investment Company
Act of 1940 (the "1940 Act") in relation to any public funds advised by
BlackRock or the Previous Investment Adviser (or affiliates),
respectively; and
* that Merrill Lynch and BlackRock would derive benefits from the
Transaction and that, as a result, they had a financial interest in the
matters being considered that was different from that of Fund
shareholders.
The directors considered the information provided by Merrill Lynch and
BlackRock above, and, among other factors, the following:
* the potential benefits to Fund shareholders from being part of a combined
fund family with BlackRock-sponsored funds, including possible economies
of scale and access to investment opportunities;
* the potential for expanding distribution of Fund shares through improved
access to third party distribution;
* the reputation, financial strength and resources of BlackRock and its
investment advisory subsidiaries and the anticipated financial strength
and resources of New BlackRock;
* the compliance policies and procedures of BlackRock Advisors;
* the terms and conditions of the BlackRock Investment Advisory Agreement,
including the fact that the schedule of the Fund's total advisory fees
would not increase under the BlackRock Investment Advisory Agreement, but
would remain the same;
* that in March 2006, the Board had performed a full annual review of the
Previous Investment Advisory Agreement, as required by the 1940 Act, and
had determined that the Previous Investment Adviser had the capabilities,
resources and personnel necessary to provide the advisory and
administrative services that were then being provided to the Fund; and
that the advisory and/or management fees paid by the Fund, taking into
account any applicable agreed-upon fee waivers and breakpoints, had
represented reasonable compensation to the Previous Investment Adviser in
light of the services provided, the costs to the Previous Investment
Adviser of providing those services, economies of scale, the fees and
other expenses paid by similar funds (including information provided by
Lipper Inc. ["Lipper"]), and such other matters as the directors had
considered relevant in the exercise of their reasonable judgment; and
* that Merrill Lynch had agreed to pay all expenses of the Fund in
connection with the Board's consideration of the BlackRock Investment
Advisory Agreement and related agreements and all costs of shareholder
approval of the BlackRock Investment Advisory Agreement and as a result
the Fund would bear no costs in obtaining shareholder approval of the
BlackRock Investment Advisory Agreement.
Certain of these considerations are discussed in more detail below.
In its review of the BlackRock Investment Advisory Agreement, the Board
assessed the nature, quality and scope of the services to be provided to the
Fund by the personnel of BlackRock Advisors and its affiliates, including
administrative services, shareholder services, oversight of fund accounting,
marketing services and assistance in meeting legal and regulatory
requirements. In its review of the BlackRock Investment Advisory Agreement,
the Board also considered a range of information in connection with its
oversight of the services to be provided by BlackRock Advisors and its
affiliates. Among the matters considered were: (a) fees (in addition to
management fees) to be paid to BlackRock Advisors and its affiliates by the
Fund; (b) Fund operating expenses paid to third parties; (c) the resources
devoted to and compliance reports relating to the Fund's investment objective,
policies and restrictions, and its compliance with its Code of Ethics and
BlackRock Advisors' compliance policies and procedures; and (d) the nature,
cost and character of non-investment management services to be provided by
BlackRock Advisors and its affiliates.
In the period prior to the Board meetings to consider renewal of the Previous
Investment Advisory Agreement, the Board had requested and received materials
specifically relating to the Previous Investment Advisory Agreement.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Disclosure of New Investment Advisory Agreement (continued)
These materials included (a) information compiled by Lipper on the fees and
expenses and the investment performance of the Fund as compared to a
comparable group of funds as classified by Lipper; (b) a discussion by the
Fund's portfolio management team on investment strategies used by the Fund
during its most recent fiscal year; (c) information on the profitability to
the Previous Investment Adviser of the Previous Investment Advisory Agreement
and other payments received by the Previous Investment Adviser and its
affiliates from the Fund; and (d) information provided by the Previous
Investment Adviser concerning services related to the valuation and pricing of
the Fund's portfolio holdings, allocation of Fund brokerage fees, the Fund's
portfolio turnover statistics, and direct and indirect benefits to the
Previous Investment Adviser and its affiliates from their relationship with
the Fund.
In their deliberations, the directors considered information received in
connection with their most recent approval of the continuance of the Previous
Investment Advisory Agreement, in addition to information provided by
BlackRock and BlackRock Advisors in connection with their evaluation of the
terms and conditions of the BlackRock Investment Advisory Agreement. The
directors did not identify any particular information that was all-important
or controlling, and each director attributed different weights to the various
factors. The directors, including a majority of the independent directors,
concluded that the terms of the BlackRock Investment Advisory Agreement are
appropriate, that the fees to be paid are reasonable in light of the services
to be provided to the Fund, and that the BlackRock Investment Advisory
Agreement should be approved and recommended to Fund shareholders.
Nature, Quality and Extent of Services Provided--The Board reviewed the
nature, quality and extent of services provided by the Previous Investment
Adviser, including the investment advisory services and the resulting
performance of the Fund, as well as the nature, quality and extent of services
expected to be provided by BlackRock Advisors. The Board focused primarily on
the Previous Investment Adviser's investment advisory services and the Fund's
investment performance, but also considered certain areas in which both the
Previous Investment Adviser and the Fund received services as part of the
Merrill Lynch complex. The Board compared the Fund's performance - both
including and excluding the effects of fees and expenses - to the performance
of a comparable group of mutual funds, and the performance of a relevant index
or combination of indexes. While the Board reviews performance data at least
quarterly, consistent with the Previous Investment Adviser's investment goals,
the Board attaches more importance to performance over relatively long periods
of time, typically three to five years.
In evaluating the nature, quality and extent of the services to be provided by
BlackRock Advisors under the BlackRock Investment Advisory Agreement, the
directors considered, among other things, the expected impact of the
Transaction on the operations, facilities, organization and personnel of
BlackRock Advisors and how it would affect the Fund; the ability of BlackRock
Advisors to perform its duties after the Transaction; and any anticipated
changes to the investment and other practices of the Fund.
The directors were given information with respect to the potential benefits to
the Fund and its shareholders from having access to BlackRock's state of the
art technology and risk management analytic tools, including the investment
tools provided under the BlackRock Solutions brand name.
The directors were advised that, as a result of Merrill Lynch's equity
interest in BlackRock after the Transaction, the Fund would continue to be
subject to restrictions concerning certain transactions involving Merrill
Lynch affiliates (for example, transactions with a Merrill Lynch broker-dealer
acting as principal) absent revised or new regulatory relief. The directors
were advised that a revision of existing regulatory relief with respect to
these restrictions was being sought from the Securities and Exchange
Commission and were advised of the possibility of receipt of such revised
regulatory relief.
Based on their review of the materials provided and the assurances they had
received from the management of Merrill Lynch and of BlackRock, the directors
determined that the nature and quality of services to be provided to the Fund
under the BlackRock Investment Advisory Agreement were expected to be as good
as or better than that provided under the Previous Investment Advisory
Agreement. The directors were advised that BlackRock Advisors did not plan
to change the Fund's portfolio management team upon the closing of the
transaction. It was noted, however, that other changes in personnel were
expected to follow the Transaction and the combination of the operations of
the Previous Investment Adviser and its affiliates with those of BlackRock.
The directors noted that if portfolio managers or other personnel were to
cease to be available prior to the closing of the Transaction, the Board would
consider all available options, including seeking the investment advisory or
other services of BlackRock affiliates. Accordingly, the directors concluded
that, overall, they were satisfied at the present time with assurances from
BlackRock and BlackRock Advisors as to the expected nature, quality and extent
of the services to be provided to the Fund under the BlackRock Investment
Advisory Agreement.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Costs of Services Provided and Profitability--It was noted that, in
conjunction with the recent review of the Previous Investment Advisory
Agreement, the directors had received, among other things, a report from
Lipper comparing the Fund's fees and expenses to those of a peer group
selected by Lipper, and information as to the fees charged by the Previous
Investment Adviser or its affiliates to other registered investment company
clients for investment management services. The Board reviewed the Fund's
contractual management fee rate and actual management fee rate as a percentage
of total assets at common asset levels - the actual rate includes advisory
fees and the effects of any fee waivers - compared to the other funds in its
Lipper category. They also compared the Fund's total expenses to those of
other, comparable funds. The information showed that the Fund had fees and
expenses within the range of fees and expenses of comparable funds. The Board
concluded that the Fund's management fee and fee rate and overall expense
ratio are reasonable compared to those of other comparable funds.
In evaluating the costs of the services to be provided by BlackRock Advisors
under the BlackRock Investment Advisory Agreement, the directors considered,
among other things, whether advisory fees or other expenses would change as a
result of the Transaction. Based on their review of the materials provided and
the fact that the BlackRock Investment Advisory Agreement is substantially
similar to the Previous Investment Advisory Agreement in all material
respects, including the rate of compensation, the directors determined that
the Transaction should not increase the total fees payable, including any fee
waivers and expense reimbursements, for advisory and administrative services.
The directors noted that it was not possible to predict with certainty New
BlackRock's future profitability from its relationship with the Fund.
The directors discussed with BlackRock Advisors its general methodology to
be used in determining New BlackRock's profitability with respect to its
relationship with the Fund. The directors noted that they expect to receive
profitability information from New BlackRock on at least an annual basis and
thus be in a position to evaluate whether any adjustments in the Fund's fees
and/or fee breakpoints would be appropriate.
Fees and Economies of Scale--The Board considered the extent to which
economies of scale might be realized as the assets of the Fund increase and
whether there should be changes in the management fee rate or structure in
order to enable the Fund to participate in these economies of scale. The Board
determined that changes were not currently necessary and that the Fund
appropriately participated in these economies of scale.
In reviewing the Transaction, the directors considered, among other things,
whether advisory fees or other expenses would change as a result of the
Transaction. Based on the fact that the BlackRock Investment Advisory
Agreement is substantially similar to the Previous Investment Advisory
Agreement in all material respects, including the rate of compensation, the
directors determined that as a result of the Transaction, the Fund's total
advisory fees would be no higher than the fees under the Previous Investment
Advisory Agreement. The directors noted that in conjunction with their
most recent deliberations concerning the Previous Investment Advisory
Agreement, the directors had determined that the total fees for advisory and
administrative services for the Fund were reasonable in light of the services
provided. It was noted that in conjunction with the recent review of the
Previous Investment Advisory Agreement, the directors had received, among
other things, a report from Lipper comparing the Fund's fees, expenses and
performance to those of a peer group selected by Lipper, and information as to
the fees charged by the Previous Investment Adviser to other registered
investment company clients for investment management services. The directors
concluded that because the rates for advisory fees for the Fund would be no
higher than the fee rates in effect at the time, the proposed management fee
structure, including any fee waivers, was reasonable and that no additional
changes were currently necessary.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Disclosure of New Investment Advisory Agreement (concluded)
Fall-Out Benefits--In evaluating the fall-out benefits to be received by
BlackRock Advisors under the BlackRock Investment Advisory Agreement, the
directors considered whether BlackRock Advisors would experience such benefits
to the same extent that the Previous Investment Adviser was experiencing such
benefits under the Previous Investment Advisory Agreement. Based on their
review of the materials provided, including materials received in connection
with their most recent approval of the continuance of the Previous Investment
Advisory Agreement, and their discussions with management of the Previous
Investment Adviser and BlackRock, the directors determined that BlackRock
Advisors' fall-out benefits could include increased ability for BlackRock to
distribute shares of its funds and other investment products and to obtain
research services using the Fund's portfolio transaction brokerage commissions.
The directors also considered possible benefits stemming from the proposal
that PFPC Financial Services, an affiliate of BlackRock, serve as transfer
agent for the Fund following the Transaction. The directors noted that fall-out
benefits were difficult to quantify with certainty at this time, and indicated
that they would continue to evaluate them going forward.
Investment Performance--The directors considered investment performance for
the Fund. The directors compared the Fund's performance - both including and
excluding the effects of fees and expenses - to the performance of a
comparable group of mutual funds, and the performance of a relevant index or
combination of indexes. The comparative information received from Lipper
showed Fund performance at various levels within the range of performance of
comparable funds over different time periods. While the Board reviews
performance data at least quarterly, consistent with the Previous Investment
Adviser's investment goals, the Board attaches more importance over relatively
long periods of time, typically three to five years. The directors believed
the Fund's performance was satisfactory. Also, the directors took into account
the investment performance of funds advised by BlackRock Advisors. The Board
considered comparative information from Lipper which showed that the
performance of the funds advised by BlackRock Advisors was within the range of
performance of comparable funds over different time periods. The Board noted
BlackRock's considerable investment management experience and capabilities,
but was unable to predict what effect, if any, consummation of the Transaction
would have on the future performance of the Fund.
Conclusion--After the independent directors of the Fund deliberated in
executive session, the entire Board, including the independent directors,
approved the BlackRock Investment Advisory Agreement, concluding that the
advisory fee rate was reasonable in relation to the services provided and that
the BlackRock Investment Advisory Agreement was in the best interests of the
shareholders. In approving the BlackRock Investment Advisory Agreement, the
Board noted that it anticipated reviewing the continuance of the agreement in
advance of the expiration of the initial two-year period.
New BlackRock Sub-Advisory Agreement--Matters Considered by the Board
At an in-person meeting held on August 16 - 17, 2006, the Board of Directors,
including the independent directors, discussed and approved the sub-advisory
agreement (the "BlackRock Sub-Advisory Agreement") between BlackRock Advisors
and its affiliate, BlackRock Investment Management, LLC (the "Sub-Adviser").
The BlackRock Sub-Advisory Agreement became effective on September 29, 2006,
at the same time the BlackRock Investment Advisory Agreement became effective.
Pursuant to the BlackRock Sub-Advisory Agreement, the Sub-Adviser receives a
monthly fee from BlackRock Advisors equal to 74% of the advisory fee received
by BlackRock Advisors from the Fund. BlackRock Advisors pays the Sub-Adviser
out of its own resources, and there is no increase in Fund expenses as a
result of the BlackRock Sub-Advisory Agreement.
In approving the BlackRock Sub-Advisory Agreement at the August in-person
meeting, the Board reviewed its considerations in connection with its approval
of the BlackRock Investment Advisory Agreement in May 2006. The Board relied
on the same information and considered the same factors as those discussed
above in connection with the approval of the BlackRock Investment Advisory
Agreement. In reviewing the sub-advisory fee rate provided in the BlackRock
Sub-Advisory Agreement, the Board noted the fact that both BlackRock Advisors
and the Sub-Adviser have significant responsibilities under their respective
advisory agreements. BlackRock Advisors remains responsible for oversight of
the Fund's operations and administration, and the Sub-Adviser provides
advisory services to the Fund and is responsible for the day-to-day management
of the Fund's portfolio under the BlackRock Sub-Advisory Agreement. The Board
also took into account the fact that there is no increase in total advisory
fees paid by the Fund as a result of the BlackRock Sub-Advisory Agreement.
Under all of the circumstances, the Board concluded that it was a reasonable
allocation of fees for the Sub-Adviser to receive 74% of the advisory fee paid
by the Fund to BlackRock Advisors.
After the independent directors deliberated in executive session, the entire
Board, including the independent directors, approved the BlackRock Sub-
Advisory Agreement, concluding that the sub-advisory fee was reasonable in
relation to the services provided and that the BlackRock Sub-Advisory
Agreement was in the best interests of shareholders.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Officers and Directors
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Director Director
Interested Director
Robert C. Doll, Jr.* President 2005 to Vice Chairman and Director of BlackRock, and 129 Funds None
P.O. Box 9011 and present Global Chief Investment Officer for Equities, 174 Portfolios
Princeton, Director Chairman of the BlackRock Private Client
NJ 08543-9011 Operating Committee, and member of the
Age: 52 BlackRock Executive Committee since 2006;
President of the Funds advised by Merrill Lynch
Investment Managers ("MLIM") and its affiliates
("MLIM/FAM-advised funds") from 2005 to
2006 and Chief Investment Officer thereof from
2001 to 2006; President of MLIM and Fund
Asset Management, L.P. ("FAM") from 2001
to 2006; Co-Head (Americas Region) thereof
from 2000 to 2001 and Senior Vice President
from 1999 to 2001; President and Director
of Princeton Services, Inc. ("Princeton
Services") since 2001; President of Princeton
Administrators, L.P. ("Princeton Administrators")
from 2001 to 2006; Chief Investment Officer
of OppenheimerFunds, Inc. in 1999 and
Executive Vice President thereof from 1991
to 1999.
* Mr. Doll is a director, trustee or member of an advisory board of certain
other investment companies for which BlackRock acts as investment adviser.
Mr. Doll is an "interested person," as defined in the Investment Company Act,
of the Fund based on his current and former positions with BlackRock, Inc. and
its affiliates. Directors serve until their resignation, removal or death, or
until December 31 of the year in which they turn 72. As Fund President, Mr. Doll
serves at the pleasure of the Board of Directors.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Officers and Directors (continued)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Director Director
Independent Directors*
Donald W. Burton Director 2002 to General Partner of The Burton Partnership, 21 Funds ITC DeltaCom,
P.O. Box 9095 present Limited Partnership (an investment partnership) 38 Portfolios Inc.; Symbion
Princeton, since 1979; Managing General Partner of The Inc.
NJ 08543-9095 South Atlantic Venture Funds since 1983; Member
Age: 62 of the Investment Advisory Council of the Florida
State Board of Administration since 2001.
John Francis O'Brien Director 2005 to President and Chief Executive Officer of 21 Funds Cabot
P.O. Box 9095 present Allmerica Financial Corporation (financial 38 Portfolios Corporation
Princeton, services holding company) from 1995 to 2002 (chemicals);
NJ 08543-9095 and Director from 1995 to 2003; President of LKQ Corporation
Age: 63 Allmerica Investment Management Co., Inc. (auto parts
(investment adviser) from 1989 to 2002, Director manufacturing)
from 1989 to 2002 and Chairman of the Board from and TJX Companies,
1989 to 1990; President, Chief Executive Officer Inc. (retailer)
and Director of First Allmerica Financial Life
Insurance Company from 1989 to 2002 and Director of
various other Allmerica Financial companies until
2002; Director from 1989 to 2006, Member of
the Governance Nominating Committee from
2004 to 2006, Member of the Compensation
Committee from 1989 to 2006 and Member of
the Audit Committee from 1990 to 2004 of
ABIOMED; Director, Member of the Governance
and Nomination Committee and Member of the
Audit Committee of Cabot Corporation since
1990; Director and Member of the Audit Committee
and Compensation Committee of LKQ Corporation
since 2003; Lead Director of TJX Companies, Inc.
since 1999; Trustee of the Woods Hole Oceanographic
Institute since 2003.
David H. Walsh Director 2003 to Consultant with Putnam Investments from 1993 21 Funds None
P.O. Box 9095 present to 2003, and employed in various capacities 38 Portfolios
Princeton, therewith from 1973 to 1992; Director,
NJ 08543-9095 Massachusetts Audubon Society from 1990 to
Age: 64 1997; Director, The National Audubon Society
from 1998 to 2005; Director, The American
Museum of Fly Fishing since 1997.
Fred G. Weiss** Director 1998 to Managing Director of FGW Associates since 21 Funds Watson
P.O. Box 9095 present 1997; Vice President, Planning, Investment 38 Portfolios Pharmaceuticals,
Princeton, and Development of Warner Lambert Co. from Inc.
NJ 08543-9095 1979 to 1997; Director of the Michael J. Fox
Age: 65 Foundation for Parkinson's Research since 2000;
Director of BTG International Plc (a global
technology commercialization company)
since 2001.
* Directors serve until their resignation, removal or death, or until December 31
of the year in which they turn 72.
** Chairman of the Board of Directors and the Audit Committee.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Officers and Directors (concluded)
Position(s) Length of
Held with Time
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years
Fund Officers*
Donald C. Burke Vice 1997 to Managing Director of BlackRock since 2006; Managing Director of MLIM and FAM
P.O. Box 9011 President present from 2005 to 2006 and Treasurer thereof from 1999 to 2006; First Vice President of
Princeton, and and MLIM and FAM from 1997 to 2005; Senior Vice President and Treasurer of Princeton
NJ 08543-9011 Treasurer 1999 to Services from 1999 to 2006 and Director from 2004 to 2006; Vice President of FAM
Age: 46 present Distributors, Inc. ("FAMD") from 1999 to 2006 and Director from 2004 to 2006; Vice
President of MLIM and FAM from 1990 to 1997; Director of Taxation of MLIM from
1990 to 2001; Vice President, Treasurer and Secretary of the IQ Funds from 2004
to 2006.
Thomas E. Burke Vice 2006 to Director of BlackRock since 2006; Director of MLIM from 1998 to 2006.
P.O. Box 9011 President present
Princeton,
NJ 08543-9011
Age: 48
Jeffrey Hiller Fund 2004 to Managing Director of BlackRock and Fund Chief Compliance Officer since 2006; Chief
P.O. Box 9011 Chief present Compliance Officer of the MLIM/FAM-advised funds and First Vice President and Chief
Princeton, Compliance Compliance Officer of MLIM (Americas Region) from 2004 to 2006; Chief Compliance
NJ 08543-9011 Officer Officer of the IQ Funds since 2004; Global Director of Compliance at Morgan Stanley
Age: 55 Investment Management from 2002 to 2004; Managing Director and Global Director
of Compliance at Citigroup Asset Management from 2000 to 2002; Chief Compliance
Officer at Soros Fund Management in 2000; Chief Compliance Officer at Prudential
Financial from 1995 to 2000; Senior Counsel in the Securities and Exchange
Commission's Division of Enforcement in Washington, D.C. from 1990 to 1995.
Alice A. Pellegrino Secretary 2004 to Director of BlackRock since 2006; Director (Legal Advisory) of MLIM from 2002 to
P.O. Box 9011 present 2006; Vice President of MLIM from 1999 to 2002; Attorney associated with MLIM
Princeton, from 1997 to 2006; Secretary of MLIM, FAM, FAMD and Princeton Services from 2004
NJ 08543-9011 to 2006.
Age: 46
* Officers of the Fund serve at the pleasure of the Board of Directors.
Further information about the Fund's Officers and Directors is available in
the Fund's Statement of Additional Information, which can be obtained without
charge by calling 1-800-441-7762.
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Pre Transaction
(Until September 29, 2006)
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville FL 32246-6484
Post Transaction
(After September 29, 2006)
PFPC Inc.
Wilmington, DE 19809
Laurie Simon Hodrick resigned as a Director of the Fund effective May 1, 2006.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Proxy Results
During the six-month period ended August 31, 2006, BlackRock Global Growth
Fund, Inc.'s shareholders voted on the following proposals. On August 15,
2006, the meeting was adjourned with respect to Proposals 1 and 3 until August
31, 2006, at which time they passed. A description of the proposals and number
of shares voted were as follows:
Shares Voted Shares Voted Shares Voted
For Against Abstain
1. To approve a new investment advisory agreement. 19,871,465 725,934 534,737
3. To approve a contingent subadvisory agreement. 19,816,220 750,294 565,621
Change in Fund's Independent Registered Public Accounting Firm
On August 28, 2006, Ernst & Young llp ("E&Y") resigned as the Independent
Registered Public Accounting Firm of BlackRock Global Growth Fund, Inc. (the
"Fund").
E&Y's reports on the financial statements of the Fund for the past two fiscal
years did not contain an adverse opinion or a disclaimer of opinion and were
not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audits for the two most recent fiscal years and through
August 28, 2006 (1) there were no disagreements with E&Y on any matter of
accounting principle or practice, financial statement disclosure or auditing
scope or procedure, whereby such disagreements, if not resolved to the
satisfaction of E&Y, would have caused them to make reference to the subject
matter of the disagreements in connection with their report on the financial
statements for such years; and (2) there have been no reportable events (as
defined in item 304(a)(1)(v) of Regulation S-K).
The Audit Committee of the Fund's Board of Directors approved the engagement
of Deloitte & Touche llp as the Fund's Independent Registered Public
Accounting Firm for the fiscal year ended August 31, 2006.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 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
Electronic copies of most financial reports and prospectuses are available on
the Fund's Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial adviser. Please note that not all investment
advisers, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock Web site at
http://www.blackrock.com/edelivery
2) Log into your account
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their nonpublic personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal nonpublic information from and about
you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your
transactions with us, our affiliates, or others; (iii) information we receive
from a consumer reporting agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to nonaffiliated third parties any
nonpublic personal information about its Clients, except as permitted by law
or as is necessary to service Client accounts. These nonaffiliated third
parties are required to protect the confidentiality and security of this
information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to
nonpublic personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the nonpublic personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
BLACKROCK GLOBAL GROWTH FUND, INC. AUGUST 31, 2006
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1)
Donald W. Burton, (2) Laurie Simon Hodrick (resigned as of May 1,
2006), (3) John F. O'Brien, (4) David H. Walsh and (5) Fred G.
Weiss.
The registrant's board of directors has determined that Laurie Simon
Hodrick qualifies as a financial expert pursuant to Item 3(c)(4) of
Form N-CSR.
Ms. Hodrick has a thorough understanding of generally accepted
accounting principals, financial statements, and internal controls
and procedures for financial reporting. Ms. Hodrick earned a Ph.D.
in economics and has taught courses in finance for over 15 years.
Her M.B.A.-level course centers around the evaluation and analysis
of firms' corporate financial statements. She has also taught in
financial analysts' training programs. Ms. Hodrick has also worked
with several prominent corporations in connection with the analysis
of financial forecasts and projections and analysis of the financial
statements of those companies, serving on the Financial Advisory
Council of one of these major corporations. She has also served as
the Treasurer and Finance Chair of a 501(c)(3) organization. Ms.
Hodrick has published a number of articles in leading economic and
financial journals and is the associate editor of two leading
finance journals.
Item 4 - Principal Accountant Fees and Services
Note: The Fund changed auditors effective August, 28, 2006. Prior
to that date, Ernst & Young LLP provided services as the Fund's
independent registered public accountant.
(a) Audit Fees - Fiscal Year Ending August 31, 2006 - $37,800
Fiscal Year Ending August 31, 2005 - $40,000
(b) Audit-Related Fees -
Fiscal Year Ending August 31, 2006 - $0
Fiscal Year Ending August 31, 2005 - $0
(c) Tax Fees - Fiscal Year Ending August 31, 2006 - $6,000
Fiscal Year Ending August 31, 2005 - $5,700
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees - Fiscal Year Ending August 31, 2006 - $0
Fiscal Year Ending August 31, 2005 - $0
(e)(1) The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). However, such services will only be
deemed pre-approved provided that any individual project does not
exceed $5,000 attributable to the registrant or $50,000 for all of
the registrants the Committee oversees. Any proposed services
exceeding the pre-approved cost levels will require specific pre-
approval by the Committee, as will any other services not subject to
general pre-approval (e.g., unanticipated but permissible services).
The Committee is informed of each service approved subject to
general pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ending August 31, 2006 - $3,098,500
Fiscal Year Ending August 31, 2005 - $7,377,027
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation
S-X is compatible with maintaining the principal accountant's
independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $1,739,500, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - 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 - The
registrant's Nominating Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and sets forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
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 second fiscal half-
year of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
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.
BlackRock Global Growth Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock Global Growth Fund, Inc.
Date: October 19, 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
BlackRock Global Growth Fund, Inc.
Date: October 19, 2006
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock Global Growth Fund, Inc.
Date: October 19, 2006