Idea Transcript
Merrill Lynch International Investment Funds Unaudited Interim Report and Accounts
30 June 2005
Contents Chairman’s Letter
2
Board of Directors
3
Management and Administration
3
Statement of Net Assets
4
Three Year Asset Summary
14
Statement of Operations and Changes in Net Assets
24
Statement of Changes in Shares Outstanding
34
Portfolio of Investments Asian Dragon Fund Asian Tiger Bond Fund Conservative Allocation Fund (Euro) Conservative Allocation Fund (US Dollar) Corporate Bond Fund (Euro) Emerging Europe Fund Emerging Markets Fund Emerging Markets Bond Fund Euro Bond Fund Euro Reserve Fund Euro-Markets Fund European Fund European Growth Fund European Opportunities Fund European Value Fund Global Allocation Fund Global Bond Fund (Euro) Global Bond Fund (US Dollar) Global Equity Diversified Fund(1) Global Focus Fund(2) Global Fundamental Value Fund Global High Yield Bond Fund (Euro) Global Opportunities Fund Global SmallCap Fund Japan Fund Japan Opportunities Fund Japan Value Fund(2) Latin American Fund
44 46 48 52 55 58 60 62 65 68 70 72 74 76 78 80 88 90 92 95 97 99 103 105 108 109 110 111
New Energy Fund Pacific Equity Fund Short Duration Bond Fund (Euro) Sterling Reserve Fund Strategic Allocation Fund (Euro) Strategic Allocation Fund (US Dollar) UK Focus Fund(2) United Kingdom Fund US Basic Value Fund US Dollar Core Bond Fund US Dollar High Yield Bond Fund US Dollar Low Duration Bond Fund US Dollar Reserve Fund US Flexible Equity Fund US Focused Value Fund US Government Mortgage Fund US Growth Fund US Opportunities Fund US SmallCap Value Fund World Bond Fund World Energy Fund World Financials Fund World Gold Fund World Healthscience Fund World Mining Fund World Technology Fund
113 115 117 119 120 124 128 129 130 132 137 141 145 146 148 149 151 152 154 156 159 161 163 165 166 168
Notes to the Financial Statements
170
General Information
176
(1)
and
(2)
See notes section
Subscriptions may be made only on the basis of the current Prospectus, of which the most recent audited annual report and accounts and unaudited interim report and accounts form an integral part. Copies are available from the Investor Service Centre, the Transfer Agent, the Manager or any of the Distributors.
Unaudited Interim Report and Accounts
1
Chairman’s Letter Merrill Lynch International Investment Funds Unaudited Interim Report 30 June 2005
In the six months to 30 June 2005, the company’s total net assets rose in value from US$24.8 to US$29.6 billion. This increase included net subscriptions to the company’s funds of US$2.1 billion. Investor confidence in global stock markets was relatively upbeat at the beginning of 2005. This was a continuance of the optimistic mood displayed by investors towards the end of 2004 on the back of a decisive outcome of the US Presidential election, a decline in oil prices from their October 2004 peaks and other generally encouraging economic data. This positive mood changed, however, in March of this year, as investors became concerned at the combined impact of a renewed spike in oil prices (which rose from below US$40 per barrel in December 2004 to above US$50 per barrel during the first quarter), a rise in inflation in the US and speculation of a further interest rate rises by the US Federal Reserve could have on the US economy, the engine of global growth. Investors concluded that these factors could possibly derail the recovering global economy and as a result stockmarkets around the world lost value, with emerging markets experiencing the greatest setback. During the latter part of the six-month period under review it became evident that the global economy had lost some momentum. Consumption remained relatively strong in the world’s two largest economies, the US and Japan, but industrial production weakened and business confidence appeared to falter. As oil prices continued to rise (with oil hitting a fresh peak of almost US$60 per barrel), market pessimists claimed that the global economy could be heading for a deeper downturn. At a sector level, energy stocks remained among the strong performers over the period, while basic materials lagged behind. In a reversal of fortunes, growth stocks outperformed value shares for the first time in five years and larger caps stocks outperformed smaller companies. In bond markets, one of the most striking trends during the first half of 2005 was the flattening of bond yield curves, particularly in the US. Short term bond yields rose on the back of successive US interest rate rises and concerns regarding inflation, while longer term bond yields (two- to ten-year maturities) fell as growth concerns and demand for ultra-long bonds mounted. The euro suffered as a result of the political uncertainties following the French and Dutch rejection of the European constitution in late May and early June respectively. The euro subsequently weakened against other major currencies, most significantly against the US dollar. The outlook for the US dollar remains unclear. On the one hand, the US Federal Reserve’s monetary policy remains supportive of the US dollar in the short term as other countries either keep their interest rates at historical lows or consider easing them. On the other hand, the US current account deficit remains a substantial obstacle which could again drive the currency lower. We continue to believe that Japan and Asia ex-Japan offer the most attractive opportunities, with the Japanese market having the potential to deliver significant value if corporate profitability continues to improve. A full list of the changes to the Fund range and all other changes made to the Company over the past year can be found in the Notes of the end of this document.
Jürgen Reimnitz 18 August 2005
2
Merrill Lynch International Investment Funds
Board of Directors
Management and Administration
Chairman Jürgen Reimnitz, Independent Director c/o Commerzbank AG Kaiserplatz, D-60261 Frankfurt am Main Federal Republic of Germany
Investment Advisers Merrill Lynch Investment Managers Limited 33 King William Street, London EC4R 9AS, UK
Directors James Charrington, Managing Director, Head of Retail Business, EMEA Pacific Merrill Lynch Investment Managers Limited 33 King William Street, London EC4R 9AS, UK
Investment Manager and Principal Distributor Merrill Lynch Investment Managers (Channel Islands) Limited Forum House, Grenville Street, St. Helier Jersey JE4 8RL, Channel Islands
Andrew Donohue, General Counsel and First Vice President Merrill Lynch Investment Managers L.P. 800 Scudders Mill Road, Plainsboro, NJ 08536, USA Robert Fairbairn, Managing Director, Chief Operating Officer, EMEA Pacific Merrill Lynch Investment Managers Limited 33 King William Street, London, EC4R 9AS, UK Frank P. Le Feuvre, Managing Director, Merrill Lynch Investment Managers (Channel Islands) Limited Forum House, Grenville Street, St. Helier Jersey JE4 8RL, Channel Islands Emilio Novela Berlin, Independent Director Paseo de la Castellana 40 bis – 4a Planta 28046 Madrid, Spain Geoffrey Radcliffe, Director and General Manager Merrill Lynch Investment Managers (Luxembourg) S.A. 6D, route de Trèves, L-2633 Senningerberg Grand-Duchy of Luxembourg François Tesch, Directeur Général Le Foyer Assurances Compagnie Luxembourgeoise S.A. 6, rue Albert Borschette, L-1246 Luxembourg Jean-Claude Wolter, Avocat Honoraire 232, rue Edith Cavell, B-1180 Brussels Belgium
Fund Asset Management, L.P. 800 Scudders Mill Road, Plainsboro, NJ 08536, USA
Investor Service Centre Merrill Lynch Investment Managers (Luxembourg) S.A. written enquiries: c/o J.P. Morgan Bank Luxembourg S.A. PO Box 1058, L-1010 Luxembourg All other enquiries: Telephone : +44 207 995 6655, Fax : +44 207 743 1143, or such other MLIM Group company that may perform dealing and investor servicing functions from time to time. Custodian The Bank of New York Europe Limited, Luxembourg Branch Aerogolf Center, 1A, Hoehenhof, L-1736 Senningerberg, Grand-Duchy of Luxembourg Fund Accountant The Bank of New York Europe Limited, Luxembourg Branch Aerogolf Center, 1A, Hoehenhof, L-1736 Senningerberg, Grand-Duchy of Luxembourg Transfer Agent and Registrar J.P. Morgan Bank Luxembourg S.A. European Bank & Business Centre 6C, route de Trèves, L-2633 Senningerberg Grand-Duchy of Luxembourg Auditor PricewaterhouseCoopers S.à r.l. Réviseur d’entreprises 400, route d’Esch, B.P. 1443, L-1014 Luxembourg Legal Advisers Linklaters Loesch 35, Avenue John F. Kennedy, L-1855 Luxembourg Listing Agent J.P. Morgan Bank Luxembourg S.A. European Bank & Business Centre 6C, route de Trèves, L-2633 Senningerberg Grand-Duchy of Luxembourg Paying Agents A list of Paying Agents is to be found on page 176. Registered Office 6D, route de Trèves, L-2633 Senningerberg Grand-Duchy of Luxembourg
Unaudited Interim Report and Accounts
3
Statement of Net Assets as at 30 June 2005 Total
Fund Name
Note
Assets Securities portfolio at cost Unrealised appreciation/(depreciation) Securities portfolio at market value Cash at bank Cash equivalents Income receivable Interest and dividends receivable Receivable for investments sold Receivable for Fund shares sold Unrealised gain on: Futures contracts Options contracts Swaps transactions Forward foreign exchange contracts Prepaid reorganisation Other assets
2(a)
2(a) 2(a) 2(a) 2(a) 2(c)
2(c) 2(f) 2(a, c, f)
Total assets Liabilities Cash owed to bank Income payable Payable for investments purchased Payable for Fund shares purchased Unrealised loss on: Futures contracts Options contracts Swaps transactions Forward foreign exchange contracts Other liabilities Total liabilities
2(c)
2(c) 2(a, c, f)
Asian Dragon US$
Asian Tiger Bond US$
Conservative Allocation (Euro) E
23,105,961,418 2,818,329,410
348,002,661 26,690,460
108,009,252 3,562,134
17,865,891 348,225
25,924,290,828 673,295,257 311,504,039 15,858,421 58,531,227 222,863,588 182,631,699
374,693,121 11,054,505 2,600,000 – 797,447 283,137 5,308,210
111,571,386 949,593 – – 2,004,968 1,200,264 147,003
18,214,116 1,109,144 600,068 – 207,291 14,334 180,725
482,356 131,115 555,500 631,912 1,337,747 2,805,218,016
– – – – 21,258 233
– – – – 7,290 13,181
– – – – 1,770 4,839
30,197,331,705
394,757,911
115,893,685
20,332,287
55,389,479 401,376 228,372,018 154,141,320
– – 8,084,828 560,795
– – 1,241,940 461,746
– – – 35,330
11,642,555 8,550,617 5,046 35,027,953 48,768,767
– – – – 753,868
– – – 827,537 503,731
42 – – 69,327 48,604
542,299,129
9,399,491
3,034,954
153,303
29,655,032,576
385,358,420
112,858,731
20,178,984
Net asset value per A class distributing (D) share Number of A class distributing (D) shares outstanding
– –
10.61 601,767
8.54 12,328
Net asset value per A class distributing (M) share Number of A class distributing (M) shares outstanding
– –
10.60 318,352
– –
Net asset value per A class non-distributing share Number of A class non-distributing shares outstanding
16.47 14,226,229
20.04 2,521,573
8.62 716,719
– –
– –
– –
£ 9.22 1,091,869
– –
– –
– –
10.75 550,194
7.96 1
15.08 2,594,350
18.86 518,074
8.04 1
Net asset value per B class hedged non-distributing share Number of B class hedged non-distributing shares outstanding
– –
– –
– –
Net asset value per C class distributing (D) share Number of C class distributing (D) shares outstanding
– –
10.75 457,238
7.80 1
Net asset value per C class distributing (M) share Number of C class distributing (M) shares outstanding
– –
– –
– –
Net asset value per C class non-distributing share Number of C class non-distributing shares outstanding
14.92 2,080,456
18.73 206,057
7.85 13,872
– –
– –
– –
16.22 902,543
19.76 68,858
8.41 1,400,037
Net asset value per E class hedged share Number of E class hedged shares outstanding
– –
– –
– –
Net asset value per Q class share distributing share Number of Q class distributing shares outstanding
– –
10.63 1,805,159
7.95 570
15.27 3,156,275
19.10 394,767
8.08 248,799
– –
– –
– –
Total net assets
Net asset value per A class hedged non-distributing share Number of A class hedged non-distributing shares outstanding Net asset value per A class UK distributor status share Number of A class UK distributor status shares outstanding Net asset value per B class distributing share Number of B class distributing shares outstanding Net asset value per B class non-distributing share Number of B class non-distributing shares outstanding
Net asset value per C class hedged non-distributing share Number of C class hedged non-distributing shares outstanding Net asset value per E class share Number of E class shares outstanding
Net asset value per Q class share non-distributing share Number of Q class non-distributing shares outstanding Net asset value per X class share Number of X class shares outstanding
4
2(a) 2(a) 2(a)
US$ equivalent
Merrill Lynch International Investment Funds
Conservative Allocation (US Dollar) US$
Corporate Bond (Euro) E
Emerging Europe E
Emerging Markets US$
Emerging Markets Bond US$
Euro Bond E
Euro Reserve E
7,029,907 159,404
10,431,638 492,392
995,053,393 216,853,240
172,479,585 35,859,100
56,553,725 2,649,384
174,450,753 5,822,728
391,457,259 411,545
7,189,311 430,417 – – 27,259 9,208 –
10,924,030 72,591 – – 203,560 114,803 16,956
1,211,906,633 7,746,315 51,000,000 – 4,320,330 17,419,480 10,114,167
208,338,685 5,393,716 – – 929,341 1,469,384 257,753
59,203,109 – – – 1,310,403 1,013,500 161,244
180,273,481 4,225,433 – – 4,259,699 335,967 2,423,039
391,868,804 – 60,000,000 – 3,975,943 – 4,965,902
– – – 1,918 1,093 2,542
– – – – 2,839 4,528
– – – – 42,161 31,040,421
– – – – 12,989 106
– – 23,759 – 2,031 –
55,520 – – – 17,115 105
– – – – 33,765 –
7,661,748
11,339,307
1,333,589,507
216,401,974
61,714,046
191,590,359
460,844,414
– – – –
– – 136,445 –
– – 3,520,851 7,674,930
– – 43,772 158,682
296,567 – – 31,476
– – – 304,867
718,228 – – 25,577,608
3,822 – – – 31,563
2,130 – – 2,866 24,999
– – – – 2,231,522
– – – – 414,801
– – – 132,939 359,729
– – – 473,872 708,859
– – – – 383,364
35,385
166,440
13,427,303
617,255
820,711
1,487,598
26,679,200
7,626,363
11,172,867
1,320,162,204
215,784,719
60,893,335
190,102,761
434,165,214
8.64 9,800
– –
– –
– –
7.78 2,259,134
15.09 271,506
– –
8.61 6,280
– –
– –
– –
– –
15.12 193,028
– –
8.91 176,879
10.94 650,356
59.71 17,717,481
14.53 12,772,092
8.08 535,281
17.30 7,776,601
71.27 5,177,907
– –
– –
– –
– –
– –
– –
– –
– –
– –
£ 40.10 17,530
– –
– –
– –
– –
8.11 31,571
10.41 11,001
– –
– –
7.78 583,149
14.77 328,581
– –
8.38 12,433
10.72 63,723
55.25 470,334
13.73 518,881
8.02 23,369
15.99 180,707
71.27 88,362
– –
– –
– –
– –
– –
– –
– –
8.14 3,501
– –
– –
– –
7.78 327,284
14.77 245,372
– –
– –
– –
– –
– –
– –
– –
– –
8.40 1,554
10.67 49,198
54.87 439,629
13.52 521,461
8.00 115,470
15.86 297,606
68.19 16,959
– –
– –
– –
– –
– –
– –
– –
8.69 95,675
10.83 252,676
57.81 2,448,179
14.07 910,201
– –
16.76 1,192,363
70.42 758,032
– –
– –
– –
– –
– –
– –
– –
8.36 1
– –
– –
– –
7.78 3,958,949
14.73 178,813
– –
8.35 560,037
– –
54.93 20,978
13.36 112,129
– –
15.82 622,890
71.27 60,460
– –
– –
60.29 1,135,443
– –
– –
– –
– –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
5
Statement of Net Assets
continued
as at 30 June 2005
Fund Name
Note
Assets Securities portfolio at cost Unrealised appreciation/(depreciation) Securities portfolio at market value Cash at bank Cash equivalents Income receivable Interest and dividends receivable Receivable for investments sold Receivable for Fund shares sold Unrealised gain on: Futures contracts Swaps transactions Forward foreign exchange contracts Prepaid reorganisation Other assets
2(a)
2(a) 2(a) 2(a) 2(a) 2(c) 2(c) 2(f) 2(a, c, f)
Total assets Liabilities Cash owed to bank Income payable Payable for investments purchased Payable for Fund shares purchased Unrealised loss on: Futures contracts Options contracts Other liabilities Total liabilities
European Opportunities E
333,273,995 29,480,450
249,418,399 23,856,231
42,599,144 2,362,829
683,734,036 95,614,614
362,754,445 7,102,496 – – 20,518 2,365,764 3,045,137
273,274,630 11,561,787 – – 297,158 4,049,289 863,620
44,961,973 – – – 46,279 913,347 1,029,613
779,348,650 – 84,000,000 – 1,320,490 2,172,541 933,086
– – – 28,044 –
– – – 33,458 –
– – – 1,661 9,387
– – – 51,174 –
375,316,404
290,079,942
46,962,260
867,825,941
– – 2,340,849 584,232
– – 5,100,847 397,345
1,708,686 – 141,468 97,116
8,383,811 – 5,951,605 2,091,913
– – 552,125
– – 594,887
– – 91,830
– – 1,465,475
6,093,079
2,039,100
17,892,804
283,986,863
44,923,160
849,933,137
Net asset value per A class distributing (D) share Number of A class distributing (D) shares outstanding
12.97 3,234
– –
– –
– –
Net asset value per A class distributing (M) share Number of A class distributing (M) shares outstanding
– –
– –
– –
– –
Net asset value per A class non-distributing share Number of A class non-distributing shares outstanding
13.07 25,789,526
56.35 4,335,953
14.04 2,687,545
62.52 11,985,353
Net asset value per A class hedged non-distributing share Number of A class hedged non-distributing shares outstanding
– –
– –
– –
– –
Net asset value per A class UK distributor status share Number of A class UK distributor status shares outstanding
– –
– –
– –
– –
Net asset value per B class distributing share Number of B class distributing shares outstanding
– –
– –
– –
– –
12.17 112,520
52.16 94,895
13.76 145,677
58.10 114,247
Net asset value per B class hedged non-distributing share Number of B class hedged non-distributing shares outstanding
– –
– –
– –
– –
Net asset value per C class distributing (D) share Number of C class distributing (D) shares outstanding
– –
– –
– –
– –
Net asset value per C class distributing (M) share Number of C class distributing (M) shares outstanding
– –
– –
– –
– –
Net asset value per C class non-distributing share Number of C class non-distributing shares outstanding
12.14 19,499
51.87 186
13.75 124,198
58.01 158,819
– –
– –
– –
– –
12.71 2,150,480
54.64 230,972
14.00 256,904
60.65 753,920
Net asset value per E class hedged share Number of E class hedged shares outstanding
– –
– –
– –
– –
Net asset value per Q class share distributing share Number of Q class distributing shares outstanding
– –
– –
– –
– –
12.18 478,259
52.29 421,903
– –
57.72 675,771
– –
– –
– –
– –
Net asset value per C class hedged non-distributing share Number of C class hedged non-distributing shares outstanding Net asset value per E class share Number of E class shares outstanding
Net asset value per Q class share non-distributing share Number of Q class non-distributing shares outstanding Net asset value per X class share Number of X class shares outstanding
6
European Growth E
3,477,206
Net asset value per B class non-distributing share Number of B class non-distributing shares outstanding
(2)
2(c) 2(a, c, f)
European E
371,839,198
Total net assets
(1)
2(a) 2(a) 2(a)
EuroMarkets E
Fund name changed, see note 17, for further details. New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
European Value E
Global Allocation US$
Global Bond (Euro) E
Global Bond (US Dollar) US$
Global Equity Diversified(1) US$
491,949,856 84,208,255
2,400,303,875 221,777,990
283,473,050 10,193,587
151,659,730 155,574
265,264,901 21,297,828
2,997,355 53,242
308,626,633 11,688,031
576,158,111 18,440,990 – – 1,217,494 9,286,998 481,090
2,622,081,865 102,160,347 12,686,132 12,042,781 – 2,540,854 11,951,315
293,666,637 9,510,868 – – 4,903,538 – 1,216,565
151,815,304 1,497,958 – – 2,186,768 43,482,159 1,218,340
286,562,729 – – – 293,479 1,489,135 1,785,855
3,050,597 – – – 3,184 35,281 –
320,314,664 – – – 444,585 2,673,908 325,828
– – – 42,395 60,231
3,372,073 8,439 350,508 117,751 16,165
180,861 – – 30,429 –
132,164 – 455,028 17,862 –
– – – 27,984 10,845
– – – 68 –
– – – 31,419 21,551
605,687,309
2,767,328,230
309,508,898
200,805,583
290,170,027
3,089,130
323,811,955
– – 2,911,759 1,349,530
– – 5,410,118 3,692,872
– 3,016 – 5,428,104
– 8,361 43,482,159 717,310
1,496,451 – – 346,214
11,704 – 19,032 –
1,702,279 – 513,195 215,412
– – 1,056,252
389,928 8,519,856 6,252,766
9,297,584 – 365,711
– – 247,822
– – 519,980
– – 5,587
– – 493,003
Global Focus(2) US$
Global Fundamental Value US$
5,317,541
24,265,540
15,094,415
44,455,652
2,362,645
36,323
2,923,889
600,369,768
2,743,062,690
294,414,483
156,349,931
287,807,382
3,052,807
320,888,066
34.36 183,170
– –
17.06 36,841
17.13 204,455
95.89 2,559
– –
– –
– –
– –
17.08 37,267
17.13 50,246
– –
– –
– –
34.34 12,372,512
28.80 42,717,578
18.91 14,070,677
19.10 6,049,809
95.92 2,248,692
10.18 13,481,305
15.89 13,481,305
– –
€ 22.71 1,213,548
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
16.60 28,950
16.56 79,101
– –
– –
– –
30.60 656,518
26.63 20,497,296
17.48 18,748
17.63 208,878
88.79 14,809
– –
15.51 250,255
– –
€ 21.00 330,147
– –
– –
– –
– –
– –
– –
– –
16.57 17,191
16.38 34,802
– –
– –
– –
– –
– –
– –
16.37 3,056
– –
– –
– –
30.35 577,349
26.42 11,863,287
17.34 36,919
17.50 45,921
88.43 3,372
– –
15.19 351,089
– –
€ 20.84 603,946
– –
– –
– –
– –
– –
33.98 647,321
28.36 1,978,928
18.33 1,272,821
18.57 623,604
93.02 670,108
– –
15.67 530,254
– –
– –
– –
– –
– –
– –
– –
– –
– –
16.56 1,000
16.52 195,380
– –
– –
– –
31.03 3,533,501
27.03 19,990,971
17.29 118,595
17.45 872,778
89.01 88,946
– –
15.67 1,750,768
– –
– –
– –
– –
– –
– –
16.15 3,822,219
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
7
Statement of Net Assets
continued
as at 30 June 2005
Fund Name
Global High Yield Bond (Euro) E
Global Opportunities US$
Global SmallCap US$
Japan US$
138,346,508 (8,281,007)
138,973,493 23,158,236
340,225,711 74,434,277
206,533,779 2,137,324
2(a) 2(a) 2(a)
130,065,501 12,425,842 – 2,528,228 – 1,023,332
162,131,729 – 5,000,000 150,770 1,124,687 3,516,453
414,659,988 9,217,588 – 800,266 2,184,084 546,087
208,671,103 3,290,805 – 27,958 – 51,448
2(c) 2(f) 2(a, c, f)
– 9,750 –
– 28,142 –
– 29,585 23,624
– 13,825 42
146,052,653
171,951,781
427,461,222
212,055,181
– 242,971 1,987,550 679,419
643,037 – 309,038 320,190
– – 1,865,637 1,595,509
– – 315,851 1,122,259
12,110 – 5,947,988 240,620
– – – 362,342
– – – 788,800
– – – 383,371
Note
Assets Securities portfolio at cost Unrealised appreciation/(depreciation) Securities portfolio at market value Cash at bank Cash equivalents Interest and dividends receivable Receivable for investments sold Receivable for Fund shares sold Unrealised gain on: Futures contracts Prepaid reorganisation Other assets
2(a)
Total assets Liabilities Cash owed to bank Income payable Payable for investments purchased Payable for Fund shares purchased Unrealised loss on: Futures contracts Swaps transactions Forward foreign exchange contracts Other liabilities Total liabilities
2(c) 2(a, c, f)
9,110,658
1,634,607
4,249,946
1,821,481
170,317,174
423,211,276
210,233,700
Net asset value per A class distributing (D) share Number of A class distributing (D) shares outstanding
6.29 872,012
– –
– –
– –
Net asset value per A class distributing (M) share Number of A class distributing (M) shares outstanding
6.32 6,179,561
– –
– –
– –
Net asset value per A class non-distributing share Number of A class non-distributing shares outstanding
9.37 7,145,219
24.32 6,136,987
42.00 7,875,421
18.61 9,567,935
Net asset value per A class hedged non-distributing share Number of A class hedged non-distributing shares outstanding
– –
– –
– –
– –
Net asset value per A class UK distributor status share Number of A class UK distributor status shares outstanding
– –
– –
– –
– –
Net asset value per B class distributing share Number of B class distributing shares outstanding
6.50 817,810
– –
– –
– –
Net asset value per B class non-distributing share Number of B class non-distributing shares outstanding
8.84 171,918
22.67 45,479
39.31 864,245
17.27 482,779
– –
– –
– –
– –
Net asset value per C class distributing (D) share Number of C class distributing (D) shares outstanding
6.46 496,000
– –
– –
– –
Net asset value per C class distributing (M) share Number of C class distributing (M) shares outstanding
6.47 593,388
– –
– –
– –
Net asset value per C class non-distributing share Number of C class non-distributing shares outstanding
8.86 290,919
22.58 27,979
39.12 526,936
17.28 330,257
– –
– –
– –
– –
9.09 837,990
23.63 607,785
41.41 97,696
18.08 481,478
– –
– –
– –
– –
6.07 56,925
– –
– –
– –
8.64 114,795
22.46 163,729
39.83 763,476
17.31 542,891
– –
– –
– –
– –
Net asset value per B class hedged non-distributing share Number of B class hedged non-distributing shares outstanding
Net asset value per C class hedged non-distributing share Number of C class hedged non-distributing shares outstanding Net asset value per E class share Number of E class shares outstanding Net asset value per E class hedged share Number of E class hedged shares outstanding Net asset value per Q class share distributing share Number of Q class distributing shares outstanding Net asset value per Q class share non-distributing share Number of Q class non-distributing shares outstanding Net asset value per X class share Number of X class shares outstanding
8
2(c)
136,941,995
Total net assets
(2)
2(a) 2(a) 2(a)
New Fund launched, see note 15, for further details.
Merrill Lynch International Investment Funds
Japan Opportunities US$
Japan Value(2) US$
Latin American US$
New Energy US$
Pacific Equity US$
Short Duration Bond (Euro) E
Sterling Reserve £
1,116,168,780 138,022,264
38,816,667 39,508
622,073,141 149,669,517
116,993,179 12,974,270
104,891,716 29,608,308
109,702,456 (375,618)
39,234,387 77,745
1,254,191,044 56,783,496 – 699,204 4,973,933 12,211,413
38,856,175 1,571,702 – 11,677 – 1,082,459
771,742,658 14,804,889 – 1,303,621 142,483 9,426,981
129,967,449 5,308,046 – 79,999 – 3,752,109
134,500,024 3,544,486 – 267,409 635,617 75,759
109,326,838 2,137,455 – 3,698,143 31,831,028 341,056
39,312,132 7,467,694 3,000,000 620,720 – 253,045
– 62,864 –
– 479 5,611
– 22,370 14,777
– 3,643 9,953
– 17,239 9,357
22,216 9,552 8,861
– 3,626 –
1,328,921,954
41,528,103
797,457,779
139,121,199
139,049,891
147,375,149
50,657,217
– – 1,173,840 16,683,431
– – 1,606,631 27
– – – 7,037,819
– – 183,655 703,806
– – – 448,749
– – 31,831,028 138,001
– – – 48,393
– – – 2,282,259
– – – 79,700
– – – 1,217,879
– – – 267,704
– – 91 300,320
– 977 1,299,780 151,576
– – – 46,301
20,139,530
1,686,358
8,255,698
1,155,165
749,160
33,421,362
94,694
1,308,782,424
39,841,745
789,202,081
137,966,034
138,300,731
113,953,787
50,562,523
– –
– –
– –
– –
– –
10.92 268,121
– –
– –
– –
– –
– –
– –
10.94 2,887
– –
47.26 24,055,493
9.84 2,284,358
31.28 23,409,974
6.74 16,456,503
18.63 4,185,260
11.76 8,057,996
173.44 261,592
– –
– –
– –
– –
– –
– –
– –
£ 26.40 58,850
– –
£ 17.41 207,184
– –
– –
– –
– –
– –
– –
– –
– –
– –
10.53 33,602
– –
43.88 1,306,426
9.83 806,726
28.46 68,918
6.51 583,032
17.33 751,882
10.94 144,847
173.11 4,174
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
10.30 77,441
– –
– –
– –
– –
– –
– –
– –
– –
43.59 991,095
9.80 961,349
28.51 134,368
6.45 580,285
17.33 476,861
10.86 127,386
156.25 –
– –
– –
– –
– –
– –
– –
– –
45.77 957,731
– –
30.83 1,167,840
6.61 2,910,702
18.38 233,781
11.48 949,553
171.19 25,913
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
43.52 568,575
– –
28.81 297,173
6.40 37,066
17.53 1,981,604
10.85 111,667
173.44 186
– –
– –
– –
– –
– –
– –
– –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
9
Statement of Net Assets
continued
as at 30 June 2005
Fund Name
Note
Assets Securities portfolio at cost Unrealised appreciation/(depreciation) Securities portfolio at market value Cash at bank Cash equivalents Income receivable Interest and dividends receivable Receivable for investments sold Receivable for Fund shares sold Unrealised gain on: Futures contracts Options contracts Swaps transactions Forward foreign exchange contracts Prepaid reorganisation Other assets
2(a)
2(a) 2(a) 2(a) 2(a) 2(c)
2(c) 2(f) 2(a, c, f)
Total assets Liabilities Cash owed to bank Income payable Payable for investments purchased Payable for Fund shares purchased Unrealised loss on: Futures contracts Options contracts Swaps transactions Forward foreign exchange contracts Other liabilities
2(c) 2(a, c, f)
39,489,592 2,898,237
68,140,476 3,156,191
1,499,276 132,598
256,105,156 27,985,222
42,387,829 4,762,923 – – 347,640 5,170,655 322,544
71,296,667 6,828,232 – – 609,688 9,601,734 47,095
1,631,874 – – – 5,140 5,421 –
284,090,378 2,332,543 – – 1,188,148 1,017,502 907,203
– 28,534 – – 4,690 –
– 55,040 – 46,273 6,602 –
– – – – – 35
– – – – 17,534 –
53,024,815
88,491,331
1,642,470
289,553,308
– – 5,057,266 13,743
– – 9,234,355 63,640
5,859 – – –
– – 607,295 1,304,575
4,985 – – 547,249 142,471
7,040 – – – 233,870
– – – – 3,214
– – – – 447,707
UK Focus(2) £
United Kingdom £
5,765,714
9,538,905
9,073
2,359,577
Total net assets
47,259,101
78,952,426
1,633,397
287,193,731
Net asset value per A class distributing (D) share Number of A class distributing (D) shares outstanding
– –
– –
– –
– –
Net asset value per A class distributing (M) share Number of A class distributing (M) shares outstanding
– –
– –
– –
– –
Net asset value per A class non-distributing share Number of A class non-distributing shares outstanding
9.87 2,876,284
21.81 3,156,110
10.89 150,000
44.59 6,254,698
Net asset value per A class hedged non-distributing share Number of A class hedged non-distributing shares outstanding
– –
– –
– –
– –
Net asset value per A class UK distributor status share Number of A class UK distributor status shares outstanding
– –
– –
– –
44.59 7,120
Net asset value per B class distributing share Number of B class distributing shares outstanding
– –
– –
– –
– –
9.28 6,758
20.20 41,735
– –
41.32 18,375
Net asset value per B class hedged non-distributing share Number of B class hedged non-distributing shares outstanding
– –
– –
– –
– –
Net asset value per C class distributing (D) share Number of C class distributing (D) shares outstanding
– –
– –
– –
– –
Net asset value per C class distributing (M) share Number of C class distributing (M) shares outstanding
– –
– –
– –
– –
Net asset value per C class non-distributing share Number of C class non-distributing shares outstanding
9.51 3
20.16 16,703
– –
41.37 3,458
– –
– –
– –
– –
9.57 709,551
21.14 44,653
– –
43.23 147,657
Net asset value per E class hedged share Number of E class hedged shares outstanding
– –
– –
– –
– –
Net asset value per Q class share distributing share Number of Q class distributing shares outstanding
– –
– –
– –
– –
9.08 1,322,630
19.98 400,056
– –
41.46 17,265
– –
– –
– –
– –
Net asset value per C class hedged non-distributing share Number of C class hedged non-distributing shares outstanding Net asset value per E class share Number of E class shares outstanding
Net asset value per Q class share non-distributing share Number of Q class non-distributing shares outstanding Net asset value per X class share Number of X class shares outstanding
10
2(c)
Strategic Allocation (US Dollar) US$
Total liabilities
Net asset value per B class non-distributing share Number of B class non-distributing shares outstanding
(2)
2(a) 2(a) 2(a)
Strategic Allocation (Euro) E
New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
US Basic Value US$
US Dollar Core Bond US$
US Dollar High Yield Bond US$
US Dollar Low Duration Bond US$
US Dollar Reserve US$
US Flexible Equity US$
US Focused Value US$
1,923,396,978 127,483,539
121,720,280 1,302,690
166,172,251 (2,596,859)
135,505,881 (2,442,256)
222,655,741 (43,852)
2,014,847,915 173,485,658
1,073,703,882 8,756,734
2,050,880,517 755,492 – 2,068,181 – – 19,966,327
123,022,970 3,632,275 – – 575,968 2,500,976 308,893
163,575,392 11,018,283 – – 2,964,869 507,500 187,582
133,063,625 8,149,338 – – 925,468 – 165,296
222,611,889 9,961,251 50,033,887 – 2,370,775 4,586,989 –
2,188,333,573 – – 1,073,424 – 21,419,122 8,908,785
1,082,460,616 – – 674,035 – 8,169,724 1,686,693
– 18,780 – – 116,152 62,658
23,649 3,274 154,200 10,942 8,745 23,977
– – – – 15,246 11,457
– – 2,404 – 9,253 15,136
– – – – 22,661 –
– – – – 71,941 7,603
– – – – 67,246 8,193
2,073,868,107
130,265,869
178,280,329
142,330,520
289,587,452
2,219,814,448
1,093,066,507
– – – 5,065,837
– – 17,882,524 454,851
– – 986,250 186,904
– 96,466 – 5,293,153
– – – 3,409,088
19,529,475 – 3,919,668 1,629,683
18,666,639 – – 8,577,012
– – – 2,458,622 3,930,643
– 30,761 3,868 – 398,098
– – – – 878,424
9,877 – – – 237,024
– – – – 248,832
– – – 20,945,417 3,296,964
– – – 539,693 1,801,239
11,455,102
18,770,102
2,051,578
5,636,520
3,657,920
49,321,207
29,584,583
2,062,413,005
111,495,767
176,228,751
136,694,000
285,929,532
2,170,493,241
1,063,481,924
42.32 1,329,159
16.79 226,340
5.99 1,181,274
9.87 1,359,901
– –
– –
– –
– –
16.79 15,141
6.04 8,009,959
9.97 1
– –
– –
– –
42.30 40,003,218
21.45 2,264,185
15.97 3,668,102
10.53 6,506,313
141.39 1,551,758
15.23 126,873,928
34.91 27,900,378
€ 33.79 812,322
– –
– –
– –
– –
€ 12.18 7,547,957
€ 27.87 172,285
£ 23.59 625
– –
– –
– –
– –
– –
– –
– –
15.87 642,683
6.04 2,384,282
9.87 2,067,898
– –
– –
– –
37.39 1,591,254
19.57 292,848
15.11 249,849
10.25 1,401,706
141.48 63,390
14.75 2,391,812
32.84 343,376
€ 29.73 15,400
– –
– –
– –
– –
€ 11.85 63,258
– –
– –
15.81 298,735
6.00 765,156
9.87 535,355
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
37.16 733,176
19.40 753,208
14.83 281,044
10.18 1,140,660
140.73 52,264
14.64 1,579,896
32.58 200,238
€ 29.56 6,350
– –
– –
– –
– –
€ 11.09 19,063
€ 25.30 24,365
41.60 482,168
21.02 127,590
15.74 191,077
10.32 301,690
139.99 330,777
15.07 2,899,509
34.47 1,263,787
€ 30.98 114,161
– –
– –
– –
– –
€ 11.64 278,641
– –
– –
15.81 782,824
5.98 4,975,187
– –
– –
– –
– –
37.92 4,370,218
19.74 300,442
15.58 157,880
– –
141.38 27,602
14.76 1,391,236
33.36 646,066
42.96 78,289
21.58 120,847
– –
– –
– –
– –
– –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
11
Statement of Net Assets
continued
as at 30 June 2005
Fund Name
US Government Mortgage US$
US Growth US$
US Opportunities US$
US SmallCap Value US$
143,441,118 237,706
113,307,467 6,353,933
120,633,174 25,107,502
173,463,319 12,724,100
143,678,824 5,052,618 477,354 11,810,586 63,962
119,661,400 6,896,536 96,693 122,578 1,419,911
145,740,676 2,094,202 23,665 2,204,296 373,808
186,187,419 2,349,931 93,720 993,850 182,631
– – – 18,848 17,697
– – – 5,370 4,837
– – – 10,168 10,946
– – – 16,696 1,451
161,119,889
128,207,325
150,457,761
189,825,698
2(a) 2(a)
– 27,592,607 185,164
– 71,452 73,218
– 2,757,557 227,223
– 1,033,736 719,458
2(c) 2(a, c, f)
– 420,150
– 232,168
– 280,176
– 377,884
Note
Assets Securities portfolio at cost Unrealised appreciation/(depreciation) Securities portfolio at market value Cash at bank Interest and dividends receivable Receivable for investments sold Receivable for Fund shares sold Unrealised gain on: Futures contracts Options contracts Swaps transactions Prepaid reorganisation Other assets
2(a) 2(a) 2(a) 2(a) 2(c)
2(f) 2(a, c, f)
Total assets Liabilities Cash owed to bank Payable for investments purchased Payable for Fund shares purchased Unrealised loss on: Forward foreign exchange contracts Other liabilities Total liabilities
28,197,921
376,838
3,264,956
2,131,078
Total net assets
132,921,968
127,830,487
147,192,805
187,694,620
Net asset value per A class distributing (D) share Number of A class distributing (D) shares outstanding
9.76 2,912,345
– –
– –
– –
Net asset value per A class distributing (M) share Number of A class distributing (M) shares outstanding
9.72 80,521
– –
– –
– –
Net asset value per A class non-distributing share Number of A class non-distributing shares outstanding
12.84 1,616,245
9.19 9,144,611
85.39 1,575,540
24.44 5,440,850
Net asset value per A class hedged non-distributing share Number of A class hedged non-distributing shares outstanding
– –
– –
– –
– –
Net asset value per A class UK distributor status share Number of A class UK distributor status shares outstanding
– –
– –
– –
– –
10.29 1,563,665
– –
– –
– –
12.68 156,374
8.75 1,282,680
79.21 12,364
23.14 455,260
– –
– –
– –
– –
Net asset value per C class distributing (D) share Number of C class distributing (D) shares outstanding
10.30 988,787
– –
– –
– –
Net asset value per C class distributing (M) share Number of C class distributing (M) shares outstanding
10.30 4,854
– –
– –
– –
Net asset value per C class non-distributing share Number of C class non-distributing shares outstanding
12.58 38,626
8.67 759,194
78.83 6,445
22.99 389,047
– –
– –
– –
– –
12.59 84,436
9.07 1,374,746
82.72 77,318
24.08 200,714
– –
– –
– –
– –
10.27 2,394,081
– –
– –
– –
12.77 119,465
8.88 1,134,954
78.51 60,843
23.48 1,295,327
13.11 2,059,677
9.28 370,618
– –
– –
Net asset value per B class distributing share Number of B class distributing shares outstanding Net asset value per B class non-distributing share Number of B class non-distributing shares outstanding Net asset value per B class hedged non-distributing share Number of B class hedged non-distributing shares outstanding
Net asset value per C class hedged non-distributing share Number of C class hedged non-distributing shares outstanding Net asset value per E class share Number of E class shares outstanding Net asset value per E class hedged share Number of E class hedged shares outstanding Net asset value per Q class share distributing share Number of Q class distributing shares outstanding Net asset value per Q class share non-distributing share Number of Q class non-distributing shares outstanding Net asset value per X class share Number of X class shares outstanding
12
Merrill Lynch International Investment Funds
World Bond US$
World Energy US$
World Financials US$
World Gold US$
World Healthscience US$
World Mining US$
World Technology US$
37,743,727 (267,960)
1,372,197,851 330,191,364
261,996,115 48,837,803
1,589,183,335 366,960,311
69,615,196 14,879,219
1,584,636,918 341,447,184
100,278,045 (972,646)
37,475,767 494,330 479,973 – –
1,702,389,215 117,553,315 537,321 225,834 23,582,988
310,833,918 4,993,875 466,410 817,592 908,129
1,956,143,646 97,975,971 412,500 160,099 13,531,046
84,494,415 4,903,425 4,202 2,765,789 454,067
1,926,084,102 58,854,761 926,645 – 20,791,221
99,305,399 2,847,638 7,755 3,067,495 3,656,904
14,793 – 24,629 1,562 3,555
– – – 36,621 –
– – – 15,187 5,317
– – – 101,872 –
– – – 4,343 10,113
– – – 74,726 3,408
– 11,183 – 7,984 64,884
38,494,609
1,844,325,294
318,040,428
2,068,325,134
92,636,354
2,006,734,863
108,969,242
– – 12,579
– 22,688,134 12,725,195
– 2,225,119 1,882,223
– 1,242,073 8,037,407
– 434,682 521,801
– 71,633 9,068,794
– 1,790,930 5,993,183
68,100 61,295
– 2,640,705
– 617,800
– 3,443,290
– 209,100
– 3,324,833
– 264,847
141,974
38,054,034
4,725,142
12,722,770
1,165,583
12,465,260
8,048,960
38,352,635
1,806,271,260
313,315,286
2,055,602,364
91,470,771
1,994,269,603
100,920,282
47.75 76,821
– –
– –
– –
– –
– –
– –
47.63 4,166
– –
– –
– –
– –
– –
– –
49.35 681,440
16.94 85,303,438
22.12 11,343,091
21.75 89,814,543
12.27 5,968,719
28.67 61,713,164
11.29 5,488,726
– –
– –
– –
– –
– –
– –
– –
– –
£ 9.41 569,381
– –
– –
– –
£ 15.97 463,226
– –
48.70 8,144
– –
– –
– –
– –
– –
– –
– –
16.21 1,272,614
21.26 407,577
20.21 1,273,452
11.88 430,245
26.74 991,068
10.78 220,109
– –
– –
– –
– –
– –
– –
– –
48.30 4,932
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
16.07 1,661,111
21.25 151,959
20.13 1,386,986
11.73 310,813
26.62 869,575
10.74 41,302
– –
– –
– –
– –
– –
– –
– –
49.08 4,538
16.59 3,713,698
21.79 761,215
21.09 2,243,192
12.03 679,722
27.86 1,923,432
11.15 501,023
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
16.07 590,118
21.67 1,566,608
20.10 44,283
11.65 109,691
26.63 12,502
10.88 2,808,458
– –
16.99 13,713,303
– –
– –
– –
28.71 3,771,454
– –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
13
Three Year Asset Summary as at 30 June 2005
Fund Name Total net assets 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002
14
Asian Dragon US$
Asian Tiger Bond US$
Conservative Allocation (Euro) E
Conservative Allocation (US Dollar) US$
385,358,420 298,486,298 258,009,015 100,365,866
112,858,731 94,313,222 96,929,575 77,135,758
20,178,984 13,586,461 24,653,662 31,458,954
7,626,363 8,666,379 18,395,401 29,604,898
– – – –
10.61 10.63 10.53 10.14
8.54 8.36 7.82 7.66
8.64 8.68 8.56 7.97
– – – –
10.60 10.62 10.53 –
– 7.98 7.82 –
8.61 8.67 8.55 –
16.47 15.79 13.35 9.17
20.04 19.57 18.41 16.90
8.62 8.41 8.19 7.99
8.91 8.92 8.79 8.16
– – – –
– – – –
– – – –
– – – –
£ 9.22 – – –
– – – –
– – – –
– – – –
– – – –
10.75 10.77 10.67 10.27
7.96 7.82 7.71 7.59
8.11 8.17 8.13 7.73
15.08 14.52 12.40 8.60
18.86 18.51 17.59 16.30
8.04 7.89 7.78 7.64
8.38 8.42 8.35 7.84
– – – –
– – – –
– – – –
– – – –
– – – –
10.75 10.77 10.67 10.29
7.80 7.63 7.54 7.51
8.14 8.20 8.10 7.70
– – – –
– – – –
– – – –
– – – –
14.92 14.39 12.33 8.60
18.73 18.40 17.53 16.28
7.85 7.71 7.61 7.59
8.40 8.46 8.45 7.94
– – – –
– – – –
– – – –
– – – –
16.22 15.59 13.24 9.15
19.76 19.34 18.29 16.87
8.41 8.22 8.05 7.89
8.69 8.72 8.64 8.06
– – – –
– – – –
– – – –
– – – –
– – – –
10.63 10.65 10.55 10.17
7.95 7.80 7.70 7.60
8.36 8.42 8.27 7.77
15.27 14.68 12.47 8.61
19.10 18.70 17.69 16.32
8.08 7.93 7.83 7.72
8.35 8.41 8.40 7.89
– – – –
– – – –
– – – –
– – – –
A class distributing (D) share
A class distributing (M) share
A class non-distributing share
A class hedged non-distributing share
A class UK distributor status share
B class distributing share
B class non-distributing share
B class hedged non-distributing share
C class distributing (D) share
C class distributing (M) share
C class non-distributing share
C class hedged non-distributing share
E class share
E class hedged share
Q class distributing share
Q class non-distributing share
X class share
Merrill Lynch International Investment Funds
Corporate Bond (Euro) E
Emerging Europe E
Emerging Markets US$
Emerging Markets Bond US$
Euro Bond E
Euro Reserve E
EuroMarkets E
11,172,867 9,076,145 12,264,085 15,343,530
1,320,162,204 781,750,253 305,970,510 170,999,014
215,784,719 231,722,135 221,895,359 137,335,261
60,893,335 55,343,591 – –
190,102,761 193,280,150 227,235,723 329,974,074
434,165,214 402,558,244 471,324,884 430,063,387
371,839,198 292,472,883 519,943,482 447,302,265
– – – –
– – – –
– – – –
7.78 7.67 – –
15.09 14.67 14.19 14.37
– – – –
12.97 11.53 10.40 –
– – – –
– – – –
– – – –
– – – –
15.12 14.69 14.19 –
– – – –
– – – –
10.94 10.58 10.03 –
59.71 48.85 37.51 25.50
14.53 13.95 11.25 7.31
8.08 7.74 – –
17.30 16.64 15.73 15.56
71.27 70.77 69.79 68.62
13.07 11.62 10.48 9.12
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
£ 40.10 – – –
– – – –
– – – –
– – – –
– – – –
– – – –
10.41 10.22 9.92 –
– – – –
– – – –
7.78 7.68 – –
14.77 14.35 13.89 14.06
– – – –
– – – –
10.72 10.43 9.98 –
55.25 45.44 35.25 24.22
13.73 13.25 10.79 7.07
8.02 7.72 – –
15.99 15.45 14.76 14.75
71.27 70.77 69.80 68.63
12.17 10.87 9.90 8.71
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 10.23 9.93 –
– – – –
– – – –
7.78 7.67 – –
14.77 14.36 13.89 14.04
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
10.67 10.39 9.98 –
54.87 45.17 35.13 24.19
13.52 13.07 10.67 6.97
8.00 7.72 – –
15.86 15.35 14.70 14.71
68.19 67.72 67.00 67.47
12.14 10.86 9.92 8.70
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
10.83 10.51 10.01 –
57.81 47.42 36.59 25.02
14.07 13.55 10.98 7.17
– – – –
16.76 16.16 15.36 15.27
70.42 70.01 69.22 68.24
12.71 11.32 10.27 8.98
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
7.78 7.67 – –
14.73 14.32 13.86 14.04
– – – –
– – – –
– – – –
54.93 45.22 35.16 24.21
13.36 12.91 10.54 6.93
– – – –
15.82 15.32 14.69 14.73
71.27 70.77 69.79 68.62
12.18 10.87 9.90 8.70
– – – –
60.29 48.95 – –
– – – –
– – – –
– – – –
– – – –
– – – –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
15
Three Year Asset Summary
continued
as at 30 June 2005
Fund Name Total net assets 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 (1) (2)
16
European Growth E
European Opportunities E
European Value E
E283,986,863 E445,701,867 E540,165,339
US$565,396,873
44,923,160 25,759,465 24,482,745 5,729,235
E849,933,137 E790,881,221 E712,646,770
US$599,648,875
E600,369,768 E582,154,138 E571,984,571
US$616,249,297
– – – –
– – – –
– – – –
E34.36 E30.54 E27.45
– – – –
– – – –
– – – –
– – – –
E56.35 E49.89 E45.79
US$42.87
14.04 12.46 11.64 9.88
E62.52 E54.35 E44.46
US$35.72
E34.34 E30.51 E27.46
US$25.81
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
E52.16 E46.40 E43.02
US$40.68
13.76 12.27 11.59 9.93
E58.10 E50.77 E41.94
US$33.87
E30.60 E27.33 E24.82
US$23.55
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
E51.87 E46.11 E42.85
US$40.48
13.75 12.28 11.62 9.93
E58.01 E50.74 E42.02
US$34.03
E30.35 E27.12 E24.69
US$23.54
– – – –
– – – –
– – – –
– – – –
E54.64 E48.49 E44.73
US$42.09
14.00 12.45 11.70 9.93
E60.65 E52.85 E43.45
US$35.02
E33.98 E30.27 E27.35
US$25.80
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
E52.29 E46.49 E43.06
US$40.68
– – – –
E57.72 E50.48 E41.82
US$33.84
E31.03 E27.63 E24.97
US$23.59
– – – –
– – – –
– – – –
– – – –
European E
A class distributing (D) share
–
A class distributing (M) share
A class non-distributing share
A class hedged non-distributing share
A class UK distributor status share
B class distributing share
B class non-distributing share
B class hedged non-distributing share
C class distributing (D) share
C class distributing (M) share
C class non-distributing share
C class hedged non-distributing share
E class share
E class hedged share
Q class distributing share
Q class non-distributing share
X class share
Fund name changed, see note 17, for further details. New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
Global Allocation US$
Global Bond (Euro) E
Global Bond (US Dollar) US$
Global Equity Diversified(1) US$
Global Fundamental Value US$
Global High Yield Bond (Euro) E
2,743,062,690 2,149,771,476 1,257,122,817 723,788,378
294,414,483 351,297,361 440,606,010 622,038,131
156,349,931 174,299,122 280,332,922 425,153,489
287,807,382 299,863,157 536,233,025 387,147,951
3,052,807 – – –
320,888,066 328,023,032 162,468,276 57,341,654
136,941,995 166,828,919 164,713,208 135,855,145
– – – –
17.06 16.66 16.36 16.52
17.13 16.78 16.48 16.62
95.89 96.93 – –
– – – –
– – – –
6.29 6.46 6.32 5.49
– – – –
17.08 16.64 16.33 –
17.13 16.78 16.48 –
– – – –
– – – –
– – – –
6.32 6.48 6.36 –
28.80 28.74 25.72 19.43
18.91 18.25 17.62 17.45
19.10 18.51 17.83 17.66
95.92 96.96 85.25 69.01
10.18 – – –
15.89 16.06 14.02 10.84
9.37 9.32 8.53 6.86
E22.71
– – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.60 16.20 15.90 16.05
16.56 16.22 15.92 16.06
– – – –
– – – –
– – – –
6.50 6.67 6.53 5.63
26.63 26.71 24.13 18.41
17.48 16.95 16.53 16.54
17.63 17.17 16.71 16.71
88.79 90.19 80.12 65.51
– – – –
15.51 15.75 13.88 10.84
8.84 8.84 8.17 6.65
E21.00
– – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.57 16.18 15.89 16.04
16.38 16.04 15.75 15.89
– – – –
– – – –
– – – –
6.46 6.63 6.49 5.61
– – – –
– – – –
16.37 – – –
– – – –
– – – –
– – – –
6.47 – – –
26.42 26.54 24.04 18.38
17.34 16.84 16.47 16.52
17.50 17.07 16.60 16.64
88.43 89.94 80.09 65.56
– – – –
15.19 15.45 13.65 10.74
8.86 8.87 8.22 6.64
E20.84
– – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
28.36 28.37 25.51 19.40
18.33 17.73 17.21 17.13
18.57 18.04 17.47 17.39
93.02 94.23 83.57 67.99
– – – –
15.67 15.88 13.93 10.83
9.09 9.07 8.34 6.74
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.56 16.15 15.86 16.01
16.52 16.18 15.89 16.02
– – – –
– – – –
– – – –
6.07 6.24 6.10 5.30
27.03 27.04 24.32 18.45
17.29 16.81 16.45 16.53
17.45 17.03 16.64 16.71
89.01 90.37 80.19 65.50
– – – –
15.67 15.88 13.92 –
8.64 8.65 8.01 6.52
– – – –
– – – –
– – – –
– – – –
– – – –
16.15 16.21 – –
– – – –
Global Focus(2) US$
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
17
Three Year Asset Summary
continued
as at 30 June 2005
Fund Name Total net assets 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 (2)
18
Global Opportunities US$
Global SmallCap US$
Japan US$
Japan Opportunities US$
170,317,174 183,811,409 121,606,064 71,957,619
423,211,276 483,817,378 644,760,518 274,406,562
210,233,700 249,122,045 246,269,240 149,041,027
1,308,782,424 1,379,448,316 754,194,924 252,564,283
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
24.32 24.24 20.15 13.35
42.00 42.28 37.32 25.42
18.61 19.89 18.31 13.59
47.26 47.73 39.12 25.03
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
£ 26.40 – – –
– – – –
– – – –
– – – –
– – – –
22.67 22.70 19.06 12.75
39.31 39.77 35.46 24.39
17.27 18.55 17.25 12.93
43.88 44.53 36.86 23.82
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
22.58 22.64 18.98 12.68
39.12 39.63 35.40 24.42
17.28 18.58 17.32 12.92
43.59 44.29 36.75 23.73
– – – –
– – – –
– – – –
– – – –
23.63 23.61 19.73 13.13
41.41 41.79 37.09 25.40
18.08 19.37 17.92 13.36
45.77 46.33 38.16 24.54
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
22.46 22.53 18.96 12.72
39.83 40.19 35.65 24.41
17.31 18.59 17.26 12.93
43.52 44.22 36.69 23.77
– – – –
– – – –
– – – –
– – – –
A class distributing (D) share
A class distributing (M) share
A class non-distributing share
A class hedged non-distributing share
A class UK distributor status share
B class distributing share
B class non-distributing share
B class hedged non-distributing share
C class distributing (D) share
C class distributing (M) share
C class non-distributing share
C class hedged non-distributing share
E class share
E class hedged share
Q class distributing share
Q class non-distributing share
X class share
New Fund launched, see note 15, for further details.
Merrill Lynch International Investment Funds
Latin American US$
New Energy US$
Pacific Equity US$
Short Duration Bond (Euro) E
Sterling Reserve £
Strategic Allocation (Euro) E
39,841,745 – – –
789,202,081 493,657,283 196,754,921 60,477,172
137,966,034 111,662,094 16,321,086 5,022,995
138,300,731 154,081,694 175,116,894 104,171,392
113,953,787 135,295,197 128,390,707 146,499,559
50,562,523 51,159,061 45,853,816 26,335,484
47,259,101 46,626,682 23,367,027 32,994,434
– – – –
– – – –
– – – –
– – – –
10.92 10.81 10.90 10.86
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
10.94 10.80 10.89 –
– – – –
– – – –
9.84 – – –
31.28 27.58 19.06 11.16
6.74 6.45 4.95 3.34
18.63 18.74 16.53 11.94
11.76 11.55 11.45 11.30
173.44 169.81 163.94 159.56
9.87 9.23 8.79 8.65
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
£ 17.41 – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
10.53 10.43 10.51 10.48
– – – –
– – – –
9.83 – – –
28.46 25.22 17.61 10.41
6.51 6.26 4.84 3.27
17.33 17.51 15.60 11.38
10.94 10.80 10.81 10.78
173.11 169.48 163.63 159.25
9.28 8.72 8.38 8.33
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
10.30 10.20 10.28 10.39
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
9.80 – – –
28.51 25.29 17.71 10.41
6.45 6.21 4.83 3.27
17.33 17.53 15.66 11.43
10.86 10.73 10.77 10.77
156.25 – 156.25 156.75
9.51 8.86 8.36 8.20
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
30.83 27.25 18.92 11.14
6.61 6.34 4.88 3.31
18.38 18.53 16.42 11.92
11.48 11.30 11.25 11.16
171.19 167.81 162.43 158.48
9.57 8.97 8.58 8.49
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 10.40 10.48 10.47
– – – –
– – – –
– – – –
28.81 25.46 17.69 10.41
6.40 6.16 4.79 3.27
17.53 17.68 15.69 11.41
10.85 10.72 10.76 10.75
173.44 169.80 163.93 159.55
9.08 8.54 8.24 8.22
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
Japan Value(2) US$
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
19
Three Year Asset Summary
continued
as at 30 June 2005 Strategic Allocation (US Dollar) US$
Fund Name Total net assets 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 (2)
20
UK Focus(2) US$
United Kingdom £
US Basic Value US$
78,952,426 102,495,515 95,081,055 113,342,964
1,633,397 – – –
287,193,731 285,198,970 232,308,640 195,856,387
2,062,413,005 2,469,246,038 1,521,487,415 791,850,745
– – – –
– – – –
– – – –
42.32 43.22 39.73 –
– – – –
– – – –
– – – –
– – – –
21.81 21.69 19.83 16.50
10.89 – – –
44.59 42.12 37.00 31.43
42.30 43.20 39.72 30.50
– – – –
– – – –
– – – –
E33.79 E34.56
– – – –
– – – –
44.59 – – –
£ 23.59 – – –
– – – –
– – – –
– – – –
– – – –
20.20 20.19 18.65 15.67
– – – –
41.32 39.23 34.78 29.85
37.39 38.37 35.62 27.63
– – – –
– – – –
– – – –
E29.73 E30.56
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
20.16 20.18 18.68 15.74
– – – –
41.37 39.33 34.98 29.85
37.16 38.19 35.55 27.64
– – – –
– – – –
– – – –
E29.56 E30.42
21.14 21.08 19.36 16.19
– – – –
43.23 40.95 36.14 30.87
41.60 42.62 39.38 30.44
– – – –
– – – –
– – – –
E30.98 E31.77
– – – –
– – – –
– – – –
– – – –
19.98 20.00 18.51 15.62
– – – –
41.46 39.33 34.85 29.88
37.92 38.82 35.86 27.68
– – – –
– – – –
– – – –
42.96 43.53 – –
A class distributing (D) share
A class distributing (M) share
A class non-distributing share
A class hedged non-distributing share
– –
A class UK distributor status share
B class distributing share
B class non-distributing share
B class hedged non-distributing share
– –
C class distributing (D) share
C class distributing (M) share
C class non-distributing share
C class hedged non-distributing share
– –
E class share
E class hedged share
– –
Q class distributing share
Q class non-distributing share
X class share
New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
US Dollar Core Bond US$
US Dollar High Yield Bond US$
US Dollar Low Duration Bond US$
US Dollar Reserve US$
US Flexible Equity US$
US Focused Value US$
US Government Mortgage US$
111,495,767 92,788,059 96,811,676 158,799,829
176,228,751 238,388,243 394,275,313 131,070,811
136,694,000 178,899,704 133,918,419 56,735,986
285,929,532 235,387,868 270,372,145 369,963,064
2,170,493,241 710,701,465 20,841,011 3,745,793
1,063,481,924 1,608,547,546 1,069,599,977 303,183,737
132,921,968 132,509,692 231,066,245 543,121,761
16.79 16.65 16.43 16.25
5.99 6.33 6.20 5.38
9.87 9.94 10.07 10.05
– – – –
– – – –
– – – –
9.76 9.79 9.84 10.08
16.79 16.64 16.41 –
6.04 6.39 6.23 –
9.97 9.94 10.07 –
– – – –
– – – –
– – – –
9.72 9.76 9.83 –
21.45 21.01 20.26 19.51
15.97 16.35 15.06 12.19
10.53 10.45 10.35 10.06
141.39 139.95 139.14 138.34
15.23 14.70 12.66 9.75
34.91 35.11 31.89 24.19
12.84 12.63 12.27 12.14
– – – –
– – – –
– – – –
– – – –
E12.18 E11.75
E27.87 E28.09
– –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
15.87 15.73 15.52 15.36
6.04 6.39 6.26 5.43
9.87 9.94 10.08 10.04
– – – –
– – – –
– – – –
10.29 10.32 10.37 10.63
19.57 19.26 18.76 18.24
15.11 15.54 14.46 11.82
10.25 10.23 10.24 10.05
141.48 140.04 139.23 138.43
14.75 14.31 12.51 9.73
32.84 33.19 30.44 23.31
12.68 12.54 12.31 12.30
– – – –
– – – –
– – – –
– – – –
E11.85 E11.49
– –
– – – –
– – – –
15.81 15.67 15.47 15.30
6.00 6.35 6.22 5.40
9.87 9.94 10.07 10.04
– – – –
– – – –
– – – –
10.30 10.33 10.39 10.64
– 15.67 15.47 –
– 6.35 6.22 –
– – – –
– – – –
– – – –
– – – –
10.30 10.33 10.39 –
19.40 19.13 18.68 18.21
14.83 15.28 14.25 11.71
10.18 10.18 10.20 10.04
140.73 139.31 138.50 137.71
14.64 14.22 12.46 9.73
32.58 32.97 30.32 23.28
12.58 12.45 12.25 12.28
– – – –
– – – –
– – – –
– – – –
E11.09 E10.76
E25.30 E25.65
– –
– – – –
21.02 20.63 20.00 19.35
15.74 16.15 14.95 12.17
10.32 10.27 10.22 10.05
139.99 138.75 138.29 137.84
15.07 14.59 12.69 9.81
34.47 34.76 31.67 24.13
12.59 12.42 12.12 12.06
– – – –
– – – –
– – – –
– – – –
E11.64
– – –
– – – –
– – – –
15.81 15.68 15.47 15.31
5.98 6.33 6.19 5.38
– – – –
– – – –
– – – –
– – – –
10.27 10.30 10.35 10.61
19.74 19.40 18.85 18.29
15.58 15.95 14.68 11.88
– – – –
141.38 139.95 139.13 138.34
14.76 14.31 – –
33.36 33.63 30.69 23.39
12.77 12.62 12.35 12.31
21.58 21.04 – –
– – – –
– – – –
– – – –
– – – –
– – – –
13.11 12.83 12.34 –
– –
– –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
21
Three Year Asset Summary
continued
as at 30 June 2005
Fund Name Total net assets 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002 Net asset value per 30 June 2005 31 December 2004 31 December 2003 31 December 2002
22
US Growth US$
US Opportunities US$
US SmallCap Value US$
World Bond US$
127,830,487 106,148,036 67,934,157 55,692,351
147,192,805 179,157,781 193,247,426 121,278,609
187,694,604 330,287,452 315,055,997 168,299,902
38,352,635 41,733,403 – –
– – – –
– – – –
– – – –
47.75 50.06 – –
– – – –
– – – –
– – – –
47.63 49.93 – –
9.19 9.22 8.67 6.81
85.39 84.73 74.72 52.59
24.44 24.50 21.77 15.21
49.35 51.07 – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
48.70 51.06 – –
8.75 8.82 8.39 6.66
79.21 79.00 70.40 50.09
23.14 23.31 20.92 14.77
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
48.30 50.64 – –
– – – –
– – – –
– – – –
– – – –
8.67 8.75 8.34 6.63
78.83 78.72 70.32 49.74
22.99 23.20 20.87 14.77
– – – –
– – – –
– – – –
– – – –
– – – –
9.07 9.12 8.63 6.81
82.72 82.30 73.03 51.64
24.08 24.20 21.61 15.20
49.08 50.91 – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
8.88 8.93 8.45 6.67
78.51 78.40 70.04 49.96
23.48 23.60 21.07 14.80
– – – –
9.28 9.24 – –
– – – –
– – – –
– – – –
A class distributing (D) share
A class distributing (M) share
A class non-distributing share
A class hedged non-distributing share
A class UK distributor status share
B class distributing share
B class non-distributing share
B class hedged non-distributing share
C class distributing (D) share
C class distributing (M) share
C class non-distributing share
C class hedged non-distributing share
E class share
E class hedged share
Q class distributing share
Q class non-distributing share
X class share
Merrill Lynch International Investment Funds
World Energy US$
World Financials US$
World Gold US$
World Healthscience US$
World Mining US$
World Technology US$
1,806,271,260 809,492,984 84,809,127 58,007,310
313,315,286 326,091,113 208,150,324 120,057,842
2,055,602,364 2,094,587,134 2,142,629,477 612,289,756
91,470,771 82,635,805 49,475,983 22,826,028
1,994,269,603 1,750,665,846 1,311,224,085 98,012,631
100,920,282 120,901,528 137,096,414 92,396,644
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.94 13.78 10.09 7.79
22.12 21.38 17.13 11.64
21.75 22.82 24.34 15.86
12.27 12.39 11.14 9.05
28.67 28.23 25.58 14.84
11.29 11.93 12.12 7.84
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
£ 9.41 – – –
– – – –
– – – –
– – – –
£ 15.97 – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.21 13.25 9.80 7.65
21.26 20.66 16.72 11.47
20.21 21.31 22.95 15.10
11.88 12.04 10.92 8.96
26.74 26.47 24.22 14.20
10.78 11.44 11.74 7.66
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.07 13.15 9.75 7.63
21.25 20.67 16.76 11.53
20.13 21.25 22.93 15.11
11.73 11.91 10.82 8.89
26.62 26.39 24.21 14.22
10.74 11.41 11.73 7.67
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.59 13.53 9.95 7.72
21.79 21.13 16.99 11.61
21.09 22.18 23.76 15.58
12.03 12.17 10.98 8.96
27.86 27.51 25.05 14.61
11.15 11.81 12.05 7.82
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16.07 13.15 9.75 7.62
21.67 20.99 16.84 11.50
20.10 21.19 22.82 15.05
11.65 11.83 10.76 8.85
26.63 26.36 24.12 14.17
10.88 11.51 11.72 7.61
16.99 – – –
– – – –
– – – –
– – – –
28.71 – – –
– – – –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
23
Statement of Operations and Changes in Net Assets for the period ended 30 June 2005 Total
Fund Name
US$ equivalent
Asian Dragon US$
Asian Tiger Bond US$
Conservative Allocation (Euro) E
9,925,368 80,850,642 196,585,795 3,090,932
168,283 – 4,921,111 –
19,558 3,284,191 – –
16,789 143,838 33,181 –
2(b)
290,452,737
5,089,394
3,303,749
193,808
4 3 5 7 3 6 8
823,802 4,229,461 19,902,495 1,915,353 6,194,804 180,813,960 3,718,850 12,589,584
– 124,110 594,481 27,095 93,790 2,521,797 66,599 182,681
864 15,109 248,519 7,873 25,956 455,804 29,566 53,117
3,635 4,403 33,210 1,284 4,006 86,616 16,242 10,392
230,188,309
3,610,553
836,808
159,788
60,264,428
1,478,841
2,466,941
34,020
1,068,540,173 13,860,506 3,641,764 185,950 (2,580,420) (4,729,195)
26,597,435 – – – (1,253) (221,705)
288,926 (101,004) – – 125,179 (9,727)
271,656 (84,242) – – (9,255) 27,642
1,139,183,206
27,853,318
2,770,315
239,821
(283,329,948) 3,610,145 (229,677) (162,191) (66,307,196) (9,217,413) 13,664,633,681 (11,565,201,888) (9,993,167) 2,023,972,751
(15,845,571) – – – – (43,860) 150,833,278 (75,925,043) –
476,941 35,368 – – (918,445) – 50,457,637 (33,363,299) (913,008)
213,615 (10,128) – – (75,624) 191 11,037,080 (4,811,826) (606)
Note
Income Bank interest Bond interest Dividends Stock lending Total income Expenses Bank interest Custodian and Depositary fees Distribution fees Fund accounting fees Luxembourg tax Management fees Transfer agent fees Other charges Total expenses Net investment income/(deficit) Net profits/(losses) realised on: Investments Futures contracts Options contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions Net profit/(loss) for the period Net change in unrealised appreciation/(depreciation) on: Investments Futures contracts Options contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions Net receipts as a result of issue of shares Net payments as a result of repurchase of shares Dividends paid Foreign exchange valuation movement Change in total net assets for the period
24
14
4,896,958,303
86,872,122
18,545,509
6,592,523
Net assets at the beginning of the period
24,758,074,273
298,486,298
94,313,222
13,586,461
Net assets at end of the period
29,655,032,576
385,358,420
112,858,731
20,178,984
Merrill Lynch International Investment Funds
Conservative Allocation (US Dollar) US$
Corporate Bond (Euro) E
Emerging Europe E
Emerging Markets US$
Emerging Markets Bond US$
Euro Bond E
Euro Reserve E
5,394 86,226 16,857 –
2,710 188,687 – –
886,562 – 15,357,963 –
60,438 – 3,520,829 –
1,079 2,102,601 – –
26,890 3,277,351 – –
613,773 4,223,076 – –
108,477
191,397
16,244,525
3,581,267
2,103,680
3,304,241
4,836,849
114 7,051 36,305 618 1,945 38,800 16,018 6,186
366 1,945 10,927 771 2,516 24,594 9,378 6,151
38,913 885,928 503,345 87,858 287,269 7,845,780 145,225 543,621
996 86,483 107,216 16,852 56,493 1,670,458 62,035 118,642
11,810 15,849 191,937 4,317 14,338 258,211 28,935 27,760
1,285 19,541 207,717 14,891 46,808 967,193 56,413 111,846
– 36,303 58,784 33,530 22,376 1,605,966 56,205 128,671
107,037
56,648
10,337,939
2,119,175
553,157
1,425,694
1,941,835
1,440
134,749
5,906,586
1,462,092
1,550,523
1,878,547
2,895,014
100,152 (56,903) – – 14,172 9,741
22,175 (7,257) – – (5,554) 1,759
107,549,723 – – – 1,042 (1,200,277)
26,159,002 – – – (8,619) (189,216)
680,304 (63,437) – – 409,292 45,577
3,412,890 357,995 – – 611,048 (432,397)
(32,009) – – – – 611
68,602
145,872
112,257,074
27,423,259
2,622,259
5,828,083
2,863,616
(121,315) 4,296 – – 1,918 (666) 1,425,165 (2,416,980) (1,036)
183,359 (3,400) – – (5,231) 31 3,116,870 (1,339,155) (1,624)
85,267,887 – – – – 398,634 788,310,865 (447,822,509) –
(17,420,861) – – – – (18,043) 55,637,907 (81,559,678) –
244,310 21,719 – 23,759 (433,625) (55,048) 9,859,474 (5,265,886) (1,467,218)
2,039,554 55,520 – – (614,941) 3,529 89,774,786 (100,142,305) (121,615)
142,691 – – – – – 354,038,626 (325,437,963) –
(1,040,016)
2,096,722
538,411,951
(15,937,416)
5,549,744
8,666,379
9,076,145
781,750,253
231,722,135
55,343,591
193,280,150
(3,177,389)
402,558,244
31,606,970
7,626,363
11,172,867
1,320,162,204
215,784,719
60,893,335
190,102,761
434,165,214
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
25
Statement of Operations and Changes in Net Assets continued for the period ended 30 June 2005 EuroMarkets E
European E
European Growth E
European Opportunities E
13,852 215,387 4,792,917 296,555
49,108 185,477 5,332,272 232,546
5,357 – 477,749 3,239
881,846 139,723 8,718,590 161,301
2(b)
5,318,711
5,799,403
486,345
9,901,460
4 3 5 7 3 6 8
10,959 65,176 115,644 22,379 72,894 2,185,818 57,625 161,919
26,955 70,801 182,337 29,906 94,595 2,913,002 63,919 226,887
6,864 17,684 23,748 2,614 8,466 213,535 15,845 15,911
3,454 174,141 435,612 63,759 212,481 6,183,519 176,533 444,553
Total expenses
2,692,414
3,608,402
304,667
7,694,052
Net investment income/(deficit) Net profits/(losses) realised on: Investments Futures contracts Options contracts Forwards foreign exchange contracts Foreign currencies on other transactions
2,626,297
2,191,001
181,678
2,207,408
22,967,312 – – 9,067 2,989
64,455,393 – – (17,360) (163,590)
3,106,748 – – 499 7,730
77,594,524 – – (642) (104,866)
25,605,665
66,465,444
3,296,655
79,696,424
9,843,653 – – – 23,299 147,573,780 (103,680,082) –
(20,026,716) – – – 13,047 47,014,315 (255,181,094) –
763,552 – – – 42,962 21,455,999 (6,395,473) –
33,315,104 – – – 17,590 239,724,793 (293,701,995) –
Fund Name
Note
Income Bank interest Bond interest Dividends Stock lending Total income Expenses Bank interest Custodian and Depositary fees Distribution fees Fund accounting fees Luxembourg tax Management fees Transfer agent fees Other charges
Net profit/(loss) for the period Net change in unrealised appreciation/(depreciation) on: Investments Futures contracts Options contracts Forwards foreign exchange contracts Foreign currencies on other transactions Net receipts as a result of issue of shares Net payments as a result of repurchase of shares Dividends paid Change in total net assets for the period
(1) (2)
26
14
79,366,315
(161,715,004)
19,163,695
59,051,916
Net assets at the beginning of the period
292,472,883
445,701,867
25,759,465
790,881,221
Net assets at end of the period
371,839,198
283,986,863
44,923,160
849,933,137
Fund name changed, see note 17, for further details. New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
European Value E
Global Allocation US$
Global Bond (Euro) E
Global Bond (US Dollar) US$
Global Equity Diversified(1) US$
71,062 390,043 11,101,838 489,646
535,744 19,297,580 12,359,835 –
53,285 5,467,915 – –
27,179 2,774,370 – –
4,060 68,646 2,992,975 68,646
137 – 11,408 –
72,989 – 4,071,730 149,559
12,052,589
32,193,159
5,521,200
2,801,549
3,134,327
11,545
4,294,278
797 69,255 773,177 41,584 135,161 3,806,448 73,311 288,527
147,100 301,054 7,096,269 183,324 627,604 16,456,481 185,264 1,179,423
16,229 27,427 80,770 24,096 76,984 1,573,845 39,526 190,101
2,182 15,868 173,707 12,414 39,419 834,584 53,943 105,466
6,398 37,441 214,634 22,368 77,064 2,188,378 57,856 166,526
– 125 – 68 377 8,072 369 531
13 45,539 216,243 25,263 76,056 1,951,489 40,714 169,476
5,188,260
26,176,519
2,028,978
1,237,583
2,770,665
9,542
2,524,793
6,864,329
6,016,640
3,492,222
1,563,966
363,662
2,003
1,769,485
37,226,454 – – – (77,676)
26,253,091 9,422,260 3,576,180 (352,875) (43,294)
5,760,043 1,987,567 – 3,349,770 1,703,428
7,902,201 882,691 – 6,220,810 1,476,800
17,363,000 – – – 8,431
(8,167) – – – 5,852
19,595,317 – – – (14,162)
44,013,107
44,872,002
16,293,030
18,046,468
17,735,093
(312)
21,350,640
20,001,619 – – – 345,091 191,026,681 (237,170,868) –
(35,008,864) 3,425,423 (440,053) (35,425) (9,024,237) 959,237,748 (369,735,380) –
14,944,451 108,370 – (20,348,087) 45,492 64,921,625 (132,831,510) (16,249)
(15,975,613) 221,099 – 2,802,953 (212,071) 58,807,441 (81,568,004) (71,464)
(21,718,548) – – – (17,723) 78,965,491 (87,020,088) –
53,242 – – – (123) 3,000,000 – –
(24,965,318) – – – (12,450) 61,580,771 (65,088,609) –
3,052,807
Global Focus(2) US$
Global Fundamental Value US$
18,215,630
593,291,214
(56,882,878)
(17,949,191)
(12,055,775)
582,154,138
2,149,771,476
351,297,361
174,299,122
299,863,157
–
328,023,032
(7,134,966)
600,369,768
2,743,062,690
294,414,483
156,349,931
287,807,382
3,052,807
320,888,066
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
27
Statement of Operations and Changes in Net Assets continued for the period ended 30 June 2005 Global High Yield Bond (Euro) E
Global Opportunities US$
Global SmallCap US$
Japan US$
85,775 5,781,908 19,039 –
68,901 – 780,099 –
93,772 – 3,747,501 162,900
6,552 142,532 1,462,127 64,069
2(b)
5,886,722
849,000
4,004,173
1,675,280
4 3 5 7 3 6 8
1,019 13,161 114,930 11,324 36,600 1,001,745 47,884 83,658
7,619 46,909 69,854 12,707 43,810 1,265,794 68,048 87,475
35,619 115,210 480,331 32,946 111,365 3,220,275 63,483 230,730
7,760 29,568 174,632 16,398 52,924 1,616,122 54,084 115,523
Total expenses
1,310,321
1,602,216
4,289,959
2,067,011
Net investment income/(deficit) Net profits/(losses) realised on: Investments Futures contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions
4,576,401
(753,216)
(285,786)
(391,731)
(8,942,852) (77,469) – (326,247) 126,650
7,827,793 – – – (36,190)
24,524,881 – – (158,629) (340,693)
11,211,610 – – – (32,838)
(4,643,517)
7,038,387
23,739,773
10,787,041
16,388,550 2,833 – (12,108,526) 338,032 76,287,031 (104,861,328) (1,289,999)
(5,546,707) – – – (3,698) 35,893,921 (50,876,138) –
(25,492,034) – – – (47,599) 64,982,688 (123,788,930) –
(25,536,545) – – – (4,041) 62,929,664 (87,064,464) –
Fund Name
Note
Income Bank interest Bond interest Dividends Stock lending Total income Expenses Bank interest Custodian and Depositary fees Distribution fees Fund accounting fees Luxembourg tax Management fees Transfer agent fees Other charges
Net profit/(loss) for the period Net change in unrealised appreciation/(depreciation) on: Investments Futures contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions Net receipts as a result of issue of shares Net payments as a result of repurchase of shares Dividends paid
(2)
28
14
Change in total net assets for the period
(29,886,924)
(13,494,235)
(60,606,102)
(38,888,345)
Net assets at the beginning of the period
166,828,919
183,811,409
483,817,378
249,122,045
Net assets at end of the period
136,941,995
170,317,174
423,211,276
210,233,700
New Fund launched, see note 15, for further details.
Merrill Lynch International Investment Funds
Japan Opportunities US$
Japan Value(2) US$
Latin American US$
New Energy US$
Pacific Equity US$
Short Duration Bond (Euro) E
Sterling Reserve £
872,679 – 8,709,138 197,213
185 – 42,397 –
96,707 – 12,023,734 –
68,808 29,495 305,182 28,316
45,698 – 1,443,649 3,859
8,734 1,697,058 – –
320,980 929,550 – –
9,779,030
42,582
12,120,441
431,801
1,493,206
1,705,792
1,250,530
239 156,510 839,221 108,523 364,238 10,618,202 196,657 723,062
– 13,010 17,644 888 1,153 60,494 12,430 11,841
16,588 154,557 127,946 45,824 165,590 4,396,557 87,556 280,515
25,824 10,487 74,814 8,454 32,483 975,640 34,063 55,799
180 31,006 301,400 10,804 36,643 1,001,386 36,656 75,942
167 13,100 62,564 9,175 28,597 601,635 24,684 37,538
270 4,395 4,479 3,986 2,647 192,387 11,215 15,244
13,006,652
117,460
5,275,133
1,217,564
1,494,017
(3,227,622)
(74,878)
6,845,308
55,884,698 – – – (198,663)
158,008 – – (7,770) (135,694)
32,640,243 – – – (217,859)
52,458,413
(60,334)
(72,001,799) – – – (38,715) 502,854,022 (553,937,813) –
39,508 – – – (17,963) 43,059,166 (3,178,632) –
(70,665,892)
777,460
234,623
(811)
928,332
1,015,907
4,561,660 – – – 19,323
4,682,343 – – (86,535) (22,281)
731,232 457,764 977 904,317 254,989
481 – – – –
39,267,692
3,795,220
4,572,716
3,277,611
1,016,388
25,752,951 – – – 2,462 618,969,504 (388,447,811) –
(1,076,523) – – – (231,786) 98,475,519 (74,658,490) –
(5,846,315) – – (2,231) 279 37,680,918 (52,186,330) –
1,593,238 (50,237) (977) (2,647,093) (1,718) 28,915,073 (52,398,386) (28,921)
74,273 – – – – 14,602,864 (16,290,063) –
(785,763)
39,841,745
295,544,798
26,303,940
(15,780,963)
(21,341,410)
1,379,448,316
–
493,657,283
111,662,094
154,081,694
135,295,197
51,159,061
(596,538)
1,308,782,424
39,841,745
789,202,081
137,966,034
138,300,731
113,953,787
50,562,523
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
29
Statement of Operations and Changes in Net Assets continued for the period ended 30 June 2005
Fund Name
Strategic Allocation (Euro) E
Strategic Allocation (US Dollar) US$
36,713 275,241 239,408 2(b)
4 3 5 7 3 6 8
Note
Income Bank interest Bond interest Dividends Total income Expenses Bank interest Custodian and Depositary fees Distribution fees Fund accounting fees Luxembourg tax Management fees Transfer agent fees Other charges Total expenses Net investment income/(deficit) Net profits/(losses) realised on: Investments Futures contracts Options contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions Net profit/(loss) for the period Net change in unrealised appreciation/(depreciation) on: Investments Futures contracts Options contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions Net receipts as a result of issue of shares Net payments as a result of repurchase of shares Dividends paid Change in total net assets for the period
(2)
30
14
UK Focus(2) £
United Kingdom £
74,254 601,434 439,083
212 – 5,725
43,275 – 4,553,892
551,362
1,114,771
5,937
4,597,167
321 25,568 95,165 3,494 11,428 342,910 17,914 30,168
4,211 51,094 65,042 6,465 21,261 648,180 25,029 49,019
– 412 – 40 193 4,637 169 597
26 18,276 24,291 21,332 70,441 2,092,337 40,947 147,145
526,968
870,301
6,048
2,414,795
24,394
244,470
1,359,209 152,819 20,460 – 108,405 128,704
(111)
2,182,372
5,633,847 280,916 40,000 – 1,530,456 332,223
910 – – – – –
9,374,171 – – – – (1,220)
1,793,991
8,061,912
799
11,555,323
2,179,631 (99,121) 28,534 – (972,426) 10,891 9,647,884 (11,956,965) –
(8,245,892) (239,330) 55,040 – 605,264 (60,099) 13,625,963 (37,345,947) –
132,598 – – – – – 1,500,000 – –
4,120,278 – – – – 5,803 86,799,352 (100,485,995) –
(23,543,089)
1,633,397
1,994,761
Net assets at the beginning of the period
46,626,682
102,495,515
–
285,198,970
Net assets at end of the period
47,259,101
78,952,426
1,633,397
287,193,731
New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
632,419
US Basic Value US$
US Dollar Core Bond US$
US Dollar High Yield Bond US$
US Dollar Low Duration Bond US$
US Dollar Reserve US$
US Flexible Equity US$
US Focused Value US$
390,297 1,706,985 16,740,729
9,604 1,951,068 8,892
3,087 8,504,655 59,375
10,467 3,265,860 –
621,063 3,171,053 –
101,310 393,345 5,345,418
472,175 728,839 7,981,083
18,838,011
1,969,564
8,567,117
3,276,327
3,792,116
5,840,073
9,182,097
92,653 132,563 1,425,562 170,823 557,319 16,275,606 218,875 1,140,939
7,376 20,023 277,001 8,576 26,829 457,924 32,414 61,165
661 18,680 313,411 15,460 46,055 1,259,533 42,266 108,346
13,779 14,427 287,446 12,072 39,249 797,494 37,002 47,406
– 22,000 52,994 20,479 13,420 997,657 44,922 83,147
22,162 113,644 463,890 121,803 444,428 11,032,472 116,525 766,327
40,765 87,563 358,309 106,880 349,486 10,517,823 153,370 720,899
20,014,340
891,308
1,804,412
1,248,875
1,234,619
13,081,251
12,335,095
(1,176,329)
1,078,256
6,762,705
2,027,452
2,557,497
(7,241,178)
(3,152,998)
75,857,132 – – – 106,691 (317,494)
1,026,404 351,816 274,369 241,160 30,557 (294,377)
(1,945,216) (45,489) – – – –
(290,502) (31,526) (6,600) (28,204) – (12,432)
90,091 – – – – –
34,332,370 – – – (14,129,966) (2,799,931)
97,351,516 – – – (1,274,415) (289,833)
74,470,000
2,708,185
4,772,000
1,658,188
2,647,588
10,161,295
92,634,270
(163,777,592) – – – (2,722,428) (2,927) 566,139,678 (880,939,764) –
238,482 52,185 (188,682) (241,160) 10,942 (1,339) 70,774,233 (54,385,863) (259,275)
(10,794,308) 24,577 – – – – 70,169,704 (122,660,162) (3,671,303)
(851,583) (24,234) 6,490 28,204 – – 60,162,456 (102,695,976) (489,249)
66,426 – – – – – 254,626,995 (206,799,345) –
81,515,469 – – – (20,945,655) (515) 2,708,556,903 (1,319,495,721) –
(147,095,034) – – – (539,693) (17) 466,839,241 (956,904,389) –
18,707,708
(62,159,492)
(42,205,704)
50,541,664
1,459,791,776
2,469,246,038
(406,833,033)
92,788,059
238,388,243
178,899,704
235,387,868
710,701,465
1,608,547,546
(545,065,622)
2,062,413,005
111,495,767
176,228,751
136,694,000
285,929,532
2,170,493,241
1,063,481,924
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
31
Statement of Operations and Changes in Net Assets continued for the period ended 30 June 2005
Fund Name
US Government Mortgage US$
US Growth US$
US Opportunities US$
US SmallCap Value US$
804 3,413,465 – –
46,398 – 510,929 20,044
43,437 – 114,252 1,406
64,486 – 802,398 24,413
2(b)
3,414,269
577,371
159,095
891,297
4 3 5 7 3 6 8
6,248 14,754 246,536 10,073 26,551 536,257 35,856 79,421
21 15,520 176,335 8,224 28,508 752,493 28,079 54,125
429 45,088 57,041 9,890 33,820 1,013,215 56,785 74,757
19,400 66,877 289,856 18,410 59,335 1,801,046 48,344 135,684
955,696
1,063,305
Note
Income Bank interest Bond interest Dividends Stock lending Total income Expenses Bank interest Custodian and Depositary fees Distribution fees Fund accounting fees Luxembourg tax Management fees Transfer agent fees Other charges Total expenses
1,291,025
2,438,952
Net investment income/(deficit) Net profits/(losses) realised on: Investments Futures contracts Options contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions
2,458,573
(485,934)
(1,131,930)
(1,547,655)
(18,899) – – – – –
2,706,332 – – – (9,423) (72,603)
9,619,842 – – – 50,132 (49,659)
16,799,438 – – – (14) 92,340
Net profit/(loss) for the period Net change in unrealised appreciation/(depreciation) on: Investments Futures contracts Options contracts Swaps transactions Forwards foreign exchange contracts Foreign currencies on other transactions Net receipts as a result of issue of shares Net payments as a result of repurchase of shares Dividends paid
2,439,674
2,138,372
8,488,385
15,344,109
(428,988) – – – – – 25,611,114 (25,904,231) (1,305,293)
(2,611,847) – – – – 524 59,188,051 (37,032,649) –
(9,097,817) – – – – 572 40,441,543 (71,797,659) –
(22,182,876) – – – – 49 29,800,496 (165,554,610) –
Change in total net assets for the period
32
14
412,276
21,682,451
(31,964,976)
(142,592,832)
Net assets at the beginning of the period
132,509,692
106,148,036
179,157,781
330,287,452
Net assets at end of the period
132,921,968
127,830,487
147,192,805
187,694,620
Merrill Lynch International Investment Funds
World Bond US$
World Energy US$
World Financials US$
World Gold US$
World Healthscience US$
World Mining US$
World Technology US$
8,047 738,642 – –
748,520 – 6,450,558 197,563
82,347 – 5,919,019 106,789
764,525 – 9,965,390 318,890
7,462 3,718 153,763 5,873
336,875 414,414 21,796,341 314,886
20,318 – 171,194 –
746,689
7,396,641
6,108,155
11,048,805
170,816
22,862,516
191,512
– 8,506 4,616 3,053 9,284 169,926 12,432 19,724
18,184 140,355 358,679 93,363 314,626 9,841,904 129,814 558,979
26,127 94,968 261,044 22,589 77,443 2,478,197 49,482 147,647
167,209 179,602 369,660 138,964 445,663 16,355,537 236,634 945,019
744 32,589 60,316 6,295 22,371 717,554 31,360 41,730
– 158,838 367,305 135,506 452,493 15,490,598 221,173 876,851
6,224 47,876 198,235 6,303 20,031 641,093 45,093 46,882
227,541
11,455,904
3,157,497
18,838,288
912,959
17,702,764
1,011,737
519,148
(4,059,263)
2,950,658
(7,789,483)
(742,143)
5,159,752
(820,225)
928,588 (138,887) – (28,184) (413,358) 60,033
49,415,699 – – – – (1,187,151)
16,577,281 – – – (192,890) (40,865)
33,141,732 – – – (9,519) 263,654
(3,200,244) – – – 26,500 (90,799)
63,153,194 – – – (14,611) (749,965)
3,799,442 – (266,850) – (10,088) (5,915)
927,340
44,169,285
19,294,184
25,606,384
(4,006,686)
67,548,370
2,696,364
(2,705,227) 84,416 – 28,184 199,462 76,790 2,906,902 (4,842,222) (56,413)
209,248,880 – – – – (481,064) 1,382,676,215 (638,835,040) –
(9,067,729) – – – – 15,119 109,488,533 (132,505,934) –
(119,239,428) – – – – (397,282) 981,479,734 (926,434,178) –
3,609,518 – – – – (9,681) 61,214,385 (51,972,570) –
(40,937,817) – – – – (123,667) 1,130,317,023 (913,200,152) –
(9,887,938) – 303,129 – – (10,345) 52,542,951 (65,625,407) –
(3,380,768)
996,778,276
(12,775,827)
8,834,966
243,603,757
41,733,403
809,492,984
326,091,113
2,094,587,134
(38,984,770)
82,635,805
1,750,665,846
120,901,528
(19,981,246)
38,352,635
1,806,271,260
313,315,286
2,055,602,364
91,470,771
1,994,269,603
100,920,282
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
33
Statement of Changes in Shares Outstanding as at 30 June 2005
Fund Name A Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class UK distributor status shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class hedged shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period X Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period
34
Merrill Lynch International Investment Funds
Asian Dragon
Asian Tiger Bond
Conservative Allocation (Euro)
Conservative Allocation (US Dollar)
– – – –
634,974 95,430 (128,637) 601,767
10,804 12,334 (10,810) 12,328
9,800 42 (42) 9,800
– – – –
428,391 72,629 (182,668) 318,352
15,404 – (15,404) –
17,445 – (11,165) 6,280
12,563,680 5,273,181 (3,610,632) 14,226,229
1,925,580 1,795,616 (1,199,623) 2,521,573
770,045 30,972 (84,298) 716,719
213,170 4,238 (40,529) 176,879
– – – –
– – – –
– – – –
– – – –
– 1,145,464 (53,595) 1,091,869
– – – –
– – – –
– – – –
– – – –
501,925 182,203 (133,934) 550,194
1 – – 1
2,558 29,046 (33) 31,571
1,868,463 1,103,026 (377,139) 2,594,350
366,772 204,194 (52,892) 518,074
1 – – 1
1 12,432 – 12,433
– – – –
– – – –
– – – –
– – – –
– – – –
171,140 360,596 (74,498) 457,238
1 – – 1
1 3,500 – 3,501
– – – –
– – – –
– – – –
– – – –
929,762 1,350,625 (199,931) 2,080,456
159,487 165,753 (119,183) 206,057
8,724 5,148 – 13,872
1,554 – – 1,554
– – – –
– – – –
– – – –
– – – –
568,864 612,555 (278,876) 902,543
66,461 35,528 (33,131) 68,858
519,304 1,277,609 (396,877) 1,400,037
57,344 116,731 (78,400) 95,675
– – – –
– – – –
– – – –
– – – –
– – – –
1,844,180 48,985 (88,006) 1,805,159
570 – – 570
1 – – 1
3,458,390 – (302,115) 3,156,275
397,436 – (2,669) 394,767
322,607 – (73,808) 248,799
712,823 – (152,786) 560,037
– – – –
– – – –
– – – –
– – – –
Corporate Bond (Euro)
Emerging Europe
Emerging Markets
Emerging Markets Bond
Euro Bond
Euro Reserve
EuroMarkets
– – – –
– – – –
– – – –
2,154,758 371,014 (266,638) 2,259,134
341,336 47,176 (117,006) 271,506
– – – –
3,194 40 – 3,234
– – – –
– – – –
– – – –
– – – –
88,116 174,062 (69,150) 193,028
– – – –
– – – –
643,009 62,465 (55,118) 650,356
13,060,417 11,690,786 (7,033,722) 17,717,481
15,195,504 2,847,566 (5,270,978) 12,772,092
19,470 518,826 (3,015) 535,281
8,624,080 4,216,332 (5,063,811) 7,776,601
4,879,916 4,329,827 (4,031,836) 5,177,907
22,209,276 11,153,591 (7,573,341) 25,789,526
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 17,530 – 17,530
– – – –
– – – –
– – – –
– – – –
– – – –
13,447 1,323 (3,769) 11,001
– – – –
– – – –
408,485 206,861 (32,197) 583,149
423,000 36,545 (130,964) 328,581
– – – –
– – – –
17,683 46,040 – 63,723
324,488 239,210 (93,364) 470,334
451,860 161,336 (94,315) 518,881
10,380 24,412 (11,423) 23,369
218,389 47,249 (84,931) 180,707
94,869 39,025 (45,532) 88,362
123,698 27,314 (38,492) 112,520
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
14,620 64 (14,684) –
– – – –
– – – –
176,082 168,233 (17,031) 327,284
70,157 188,297 (13,082) 245,372
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
36,618 12,580 – 49,198
216,653 345,337 (122,361) 439,629
165,714 442,515 (86,768) 521,461
104,921 18,153 (7,604) 115,470
158,833 244,027 (105,254) 297,606
15,484 17,076 (15,601) 16,959
16,503 4,937 (1,941) 19,499
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
135,014 170,484 (52,822) 252,676
1,313,802 2,190,170 (1,055,793) 2,448,179
714,625 469,471 (273,895) 910,201
– – – –
996,533 460,428 (264,598) 1,192,363
611,824 606,642 (460,434) 758,032
2,307,831 640,134 (797,485) 2,150,480
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
4,339,744 165,535 (546,330) 3,958,949
194,912 984 (17,083) 178,813
– – – –
– – – –
– – – –
30,032 – (9,054) 20,978
148,012 – (35,883) 112,129
– – – –
765,652 – (142,762) 622,890
93,527 – (33,067) 60,460
623,068 – (144,809) 478,259
– – – –
1,135,443 – – 1,135,443
– – – –
– – – –
– – – –
– – – –
– – – –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
35
Statement of Changes in Shares Outstanding
continued
as at 30 June 2005
Fund Name A Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class UK distributor status shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class hedged shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period X Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period (1) (2)
36
Fund name changed, see note 17, for further details. New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
European
European Growth
European Opportunities
European Value
– – – –
– – – –
– – – –
121,599 501,768 (440,197) 183,170
– – – –
– – – –
– – – –
– – – –
8,172,352 756,645 (4,593,044) 4,335,953
1,692,549 1,351,135 (356,139) 2,687,545
12,699,701 3,705,884 (4,420,232) 11,985,353
13,934,035 4,556,324 (6,117,847) 12,372,512
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
58,382 45,566 (9,053) 94,895
114,811 61,657 (30,791) 145,677
97,219 52,601 (35,573) 114,247
577,539 231,517 (152,538) 656,518
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
1,675 86 (1,575) 186
76,001 72,233 (24,036) 124,198
71,933 109,632 (22,746) 158,819
431,681 247,641 (101,973) 577,349
– – – –
– – – –
– – – –
– – – –
234,778 93,890 (97,696) 230,972
187,539 146,170 (76,805) 256,904
951,478 251,001 (448,559) 753,920
456,712 432,485 (241,876) 647,321
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
512,931 – (91,028) 421,903
– – – –
828,317 414 (152,960) 675,771
4,052,175 860 (519,534) 3,533,501
– – – –
– – – –
– – – –
– – – –
Global Allocation
Global Bond (Euro)
Global Bond (US Dollar)
Global Equity Diversified(1)
Global Fundamental Value
Global High Yield Bond (Euro)
– – – –
36,211 6,606 (5,976) 36,841
234,720 9,256 (39,521) 204,455
2,559 – – 2,559
– – – –
– – – –
901,029 158,486 (187,503) 872,012
– – – –
5,201 49,186 (17,120) 37,267
49,497 46,432 (45,683) 50,246
– – – –
– – – –
– – – –
3,109,249 4,584,498 (1,514,186) 6,179,561
29,838,475 21,388,913 (8,509,810) 42,717,578
17,334,861 3,026,197 (6,290,381) 14,070,677
7,118,555 2,781,874 (3,850,620) 6,049,809
2,474,906 562,144 (788,358) 2,248,692
– 300,000 – 300,000
13,539,885 3,465,377 (3,523,957) 13,481,305
11,787,320 3,361,020 (8,003,121) 7,145,219
– 1,225,029 (11,481) 1,213,548
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
34,749 2,241 (8,040) 28,950
102,588 28,085 (51,572) 79,101
– – – –
– – – –
– – – –
827,147 120,147 (129,484) 817,810
16,919,572 4,914,333 (1,336,609) 20,497,296
46,585 – (27,837) 18,748
140,556 161,441 (93,119) 208,878
12,771 2,948 (910) 14,809
– – – –
201,780 82,349 (33,874) 250,255
395,311 8,179 (231,572) 171,918
– 378,498 (48,351) 330,147
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
11,591 7,184 (1,584) 17,191
22,424 12,511 (133) 34,802
– – – –
– – – –
– – – –
522,142 193,334 (219,476) 496,000
– – – –
– – – –
– 3,056 – 3,056
– – – –
– – – –
– – – –
– 596,721 (3,333) 593,388
7,762,634 5,234,131 (1,133,478) 11,863,287
5,536 31,383 – 36,919
421 98,107 (52,607) 45,921
6,756 – (3,384) 3,372
– – – –
236,288 152,200 (37,399) 351,089
299,507 340,510 (349,098) 290,919
– 611,664 (7,718) 603,946
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
1,933,065 688,928 (643,065) 1,978,928
1,693,624 400,920 (821,723) 1,272,821
697,644 31,364 (105,404) 623,604
500,326 263,994 (94,212) 670,108
– – – –
534,868 196,985 (201,599) 530,254
1,542,650 679,755 (1,384,415) 837,990
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
17,149 37 (16,186) 1,000
221,556 947 (27,123) 195,380
– – – –
– – – –
– – – –
66,210 1,499 (10,784) 56,925
21,427,426 4,029 (1,440,484) 19,990,971
139,479 – (20,884) 118,595
1,008,016 – (135,238) 872,778
118,916 – (29,970) 88,946
– – – –
2,096,287 – (345,519) 1,750,768
163,114 – (48,319) 114,795
– – – –
– – – –
– – – –
– – – –
– – – –
3,822,219 – – 3,822,219
– – – –
Global Focus(2)
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
37
Statement of Changes in Shares Outstanding
continued
as at 30 June 2005
Fund Name A Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class UK distributor status shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class hedged shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period X Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period (2)
38
New Fund launched, available in Luxembourg only, see note 15, for further details.
Merrill Lynch International Investment Funds
Global Opportunities
Global SmallCap
Japan
Japan Opportunities
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
6,710,242 1,374,135 (1,947,390) 6,136,987
9,101,764 1,198,051 (2,424,394) 7,875,421
10,485,557 3,072,469 (3,990,091) 9,567,935
25,229,333 9,524,903 (10,698,743) 24,055,493
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 65,020 (6,170) 58,850
– – – –
– – – –
– – – –
– – – –
40,697 6,419 (1,637) 45,479
896,602 156,853 (189,210) 864,245
579,661 65,710 (162,592) 482,779
1,323,616 229,082 (246,272) 1,306,426
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
7,419 20,702 (142) 27,979
471,603 165,402 (110,069) 526,936
314,621 50,645 (35,009) 330,257
994,428 290,467 (293,800) 991,095
– – – –
– – – –
– – – –
– – – –
671,539 92,636 (156,390) 607,785
112,193 43,186 (57,683) 97,696
618,128 148,205 (284,855) 481,478
940,988 322,172 (305,429) 957,731
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
186,811 – (23,082) 163,729
993,040 239 (229,803) 763,476
642,741 – (99,850) 542,891
647,078 – (78,503) 568,575
– – – –
– – – –
– – – –
– – – –
Latin American
New Energy
Pacific Equity
Short Duration Bond (Euro)
Sterling Reserve
Strategic Allocation (Euro)
– – – –
– – – –
– – – –
– – – –
318,736 15,422 (66,037) 268,121
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
35,560 3,593 (36,266) 2,887
– – – –
– – – –
– 2,590,688 (306,330) 2,284,358
17,103,121 19,295,715 (12,988,862) 23,409,974
14,282,556 12,904,195 (10,730,248) 16,456,503
4,977,703 1,512,216 (2,304,659) 4,185,260
10,029,767 1,533,861 (3,505,632) 8,057,996
278,289 69,594 (86,291) 261,592
2,886,694 790,481 (800,891) 2,876,284
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 215,128 (7,944) 207,184
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
25,617 8,072 (87) 33,602
– – – –
– – – –
– 808,258 (1,532) 806,726
24,960 64,996 (21,038) 68,918
403,805 265,939 (86,712) 583,032
658,926 213,698 (120,742) 751,882
147,196 21,385 (23,734) 144,847
5,295 340 (1,461) 4,174
6,758 – – 6,758
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
59,520 20,768 (2,847) 77,441
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 975,191 (13,842) 961,349
18,569 161,331 (45,532) 134,368
571,998 164,138 (155,851) 580,285
300,155 202,256 (25,550) 476,861
112,813 14,950 (377) 127,386
– – – –
3 – – 3
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
403,978 1,255,409 (491,547) 1,167,840
2,082,374 1,655,171 (826,843) 2,910,702
205,647 151,556 (123,422) 233,781
805,698 895,991 (752,136) 949,553
17,724 15,533 (7,344) 25,913
617,364 228,014 (135,827) 709,551
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
6,600 13 (6,613) –
– – – –
– – – –
– – – –
387,939 – (90,766) 297,173
40,813 – (3,747) 37,066
2,273,751 – (292,147) 1,981,604
260,883 – (149,216) 111,667
186 – – 186
1,685,851 24,684 (387,905) 1,322,630
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
Japan Value(2)
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
39
Statement of Changes in Shares Outstanding
continued
as at 30 June 2005
Fund Name A Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class UK distributor status shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class hedged shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period X Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period (2)
40
New Fund launched, see note 16, for further details.
Merrill Lynch International Investment Funds
Strategic Allocation (US Dollar)
UK Focus(2)
United Kingdom
US Basic Value
– – – –
– – – –
– – – –
790,602 577,091 (38,534) 1,329,159
– – – –
– – – –
– – – –
– – – –
4,136,923 613,675 (1,594,488) 3,156,110
– 150,000 – 150,000
6,617,853 1,922,334 (2,285,489) 6,254,698
47,943,789 9,434,187 (17,374,758) 40,003,218
– – – –
– – – –
– – – –
745,196 945,222 (878,096) 812,322
– – – –
– – – –
– 7,121 (1) 7,120
– 625 – 625
– – – –
– – – –
– – – –
– – – –
70,049 – (28,314) 41,735
– – – –
14,683 3,776 (84) 18,375
1,695,049 201,979 (305,774) 1,591,254
– – – –
– – – –
– – – –
10,400 32,300 (27,300) 15,400
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
16,703 – – 16,703
– – – –
3,145 815 (502) 3,458
639,183 221,097 (127,104) 733,176
– – – –
– – – –
– – – –
4,695 1,655 – 6,350
53,585 15,509 (24,441) 44,653
– – – –
121,123 86,025 (59,491) 147,657
580,612 230,635 (329,079) 482,168
– – – –
– – – –
– – – –
90,328 76,048 (52,215) 114,161
– – – –
– – – –
– – – –
– – – –
494,815 413 (95,172) 400,056
– – – –
20,033 – (2,768) 17,265
5,092,177 1,488 (723,447) 4,370,218
– – – –
– – – –
– – – –
278,034 – (199,745) 78,289
US Dollar Core Bond
US Dollar High Yield Bond
US Dollar Low Duration Bond
US Dollar Reserve
US Flexible Equity
US Focused Value
US Government Mortgage
206,539 82,188 (62,387) 226,340
1,762,619 160,887 (742,232) 1,181,274
2,112,975 54,565 (807,639) 1,359,901
– – – –
– – – –
– – – –
3,235,106 87,406 (410,167) 2,912,345
11,341 9,868 (6,068) 15,141
6,497,701 3,028,262 (1,516,004) 8,009,959
1 – – 1
– – – –
– – – –
– – – –
131,223 50,034 (100,736) 80,521
1,781,820 2,306,693 (1,824,328) 2,264,185
6,350,468 2,494,324 (5,176,690) 3,668,102
8,874,320 3,651,269 (6,019,276) 6,506,313
1,265,060 1,534,566 (1,247,868) 1,551,758
42,181,080 104,797,244 (20,104,396) 126,873,928
42,012,341 11,169,322 (25,281,285) 27,900,378
1,878,862 496,552 (759,169) 1,616,245
– – – –
– – – –
– – – –
– – – –
370,035 44,599,931 (37,422,009) 7,547,957
724,089 551,210 (1,103,014) 172,285
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
601,843 181,870 (141,030) 642,683
2,982,402 340,236 (938,356) 2,384,282
2,705,846 322,630 (960,578) 2,067,898
– – – –
– – – –
– – – –
1,067,979 938,426 (442,740) 1,563,665
247,793 118,077 (73,022) 292,848
269,405 85,055 (104,611) 249,849
1,619,042 403,599 (620,935) 1,401,706
66,342 47,404 (50,356) 63,390
1,645,864 960,175 (214,227) 2,391,812
334,327 79,374 (70,325) 343,376
188,807 14,934 (47,367) 156,374
– – – –
– – – –
– – – –
– – – –
2,408 60,850 – 63,258
– – – –
– – – –
169,918 256,626 (127,809) 298,735
913,566 320,200 (468,610) 765,156
868,324 346,748 (679,717) 535,355
– – – –
– – – –
– – – –
364,758 790,544 (166,515) 988,787
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 4,854 – 4,854
272,153 519,336 (38,281) 753,208
139,522 178,604 (37,082) 281,044
887,421 878,386 (625,147) 1,140,660
38,733 48,267 (34,736) 52,264
858,380 825,028 (103,512) 1,579,896
207,725 107,707 (115,194) 200,238
54,272 – (15,646) 38,626
– – – –
– – – –
– – – –
– – – –
19,358 13,221 (13,516) 19,063
11,500 13,865 (1,000) 24,365
– – – –
264,697 78,120 (215,227) 127,590
273,991 157,192 (240,106) 191,077
388,732 223,808 (310,850) 301,690
272,499 183,523 (125,245) 330,777
1,765,577 1,648,089 (514,157) 2,899,509
1,781,704 490,580 (1,008,497) 1,263,787
137,020 39,552 (92,136) 84,436
– – – –
– – – –
– – – –
– – – –
– 304,794 (26,153) 278,641
– – – –
– – – –
999,364 10,261 (226,801) 782,824
6,841,880 261,452 (2,128,145) 4,975,187
– – – –
– – – –
– – – –
– – – –
2,692,220 52,898 (351,037) 2,394,081
306,245 – (5,803) 300,442
188,092 – (30,212) 157,880
– – – –
41,784 – (14,182) 27,602
1,601,334 – (210,098) 1,391,236
753,297 178 (107,409) 646,066
168,894 – (49,429) 119,465
120,847 – – 120,847
– – – –
– – – –
– – – –
– – – –
– – – –
2,059,677 – – 2,059,677
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
41
Statement of Changes in Shares Outstanding
continued
as at 30 June 2005
Fund Name A Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period A Class UK distributor status shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period B Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (D) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class distributing (M) shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period C Class hedged non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period E Class hedged shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period Q Class non-distributing shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period X Class shares Shares outstanding at the beginning of the period Shares issued Shares repurchased Shares outstanding at the end of the period
42
Merrill Lynch International Investment Funds
US Growth
US Opportunities
US SmallCap Value
World Bond
– – – –
– – – –
– – – –
75,484 7,594 (6,257) 76,821
– – – –
– – – –
– – – –
4,130 36 – 4,166
6,567,225 5,595,651 (3,018,265) 9,144,611
1,932,452 467,338 (824,250) 1,575,540
10,637,627 1,014,505 (6,211,282) 5,440,850
725,117 24,324 (68,001) 681,440
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
4,896 17,892 (14,644) 8,144
1,204,661 259,254 (181,235) 1,282,680
16,460 14,550 (18,646) 12,364
569,904 78,752 (193,396) 455,260
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
603 4,707 (378) 4,932
– – – –
– – – –
– – – –
– – – –
394,622 452,639 (88,067) 759,194
7,271 2,332 (3,158) 6,445
402,111 126,736 (139,800) 389,047
– – – –
– – – –
– – – –
– – – –
– – – –
1,529,053 257,231 (411,538) 1,374,746
93,819 11,128 (27,629) 77,318
283,653 61,340 (144,279) 200,714
8,524 4,034 (8,020) 4,538
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
1,585,694 – (450,740) 1,134,954
74,403 2 (13,562) 60,843
1,702,266 – (406,939) 1,295,327
– – – –
370,618 – – 370,618
– – – –
– – – –
– – – –
World Energy
World Financials
World Gold
World Healthscience
World Mining
World Technology
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
55,426,546 67,322,402 (37,445,510) 85,303,438
12,433,190 4,631,078 (5,721,177) 11,343,091
88,001,549 43,857,460 (42,044,466) 89,814,543
5,604,709 4,213,716 (3,849,706) 5,968,719
59,260,849 32,550,114 (30,097,799) 61,713,164
5,581,282 4,402,530 (4,495,086) 5,488,726
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– 699,529 (130,148) 569,381
– – – –
– – – –
– – – –
– 468,147 (4,921) 463,226
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
758,950 893,687 (380,023) 1,272,614
336,045 118,832 (47,300) 407,577
1,397,107 339,628 (463,283) 1,273,452
246,548 243,569 (59,872) 430,245
1,037,764 206,776 (253,472) 991,068
212,842 59,312 (52,045) 220,109
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
666,889 1,542,234 (548,012) 1,661,111
146,709 89,431 (84,181) 151,959
1,112,792 561,955 (287,761) 1,386,986
129,629 237,464 (56,280) 310,813
594,991 490,555 (215,971) 869,575
79,968 28,315 (66,981) 41,302
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
1,274,556 4,415,129 (1,975,987) 3,713,698
598,110 355,179 (192,074) 761,215
1,426,785 1,437,904 (621,497) 2,243,192
514,428 511,204 (345,910) 679,722
1,240,721 1,831,253 (1,148,542) 1,923,432
665,039 181,939 (345,955) 501,023
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
– – – –
742,673 – (152,555) 590,118
1,791,587 894 (225,873) 1,566,608
55,581 – (11,298) 44,283
206,425 – (96,734) 109,691
12,502 – – 12,502
3,748,914 9,303 (949,759) 2,808,458
– 13,713,303 – 13,713,303
– – – –
– – – –
– – – –
– 3,771,454 – 3,771,454
– – – –
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
43
Asian Dragon Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
COMMON STOCKS (SHARES) & WARRANTS Bermuda 10,578,000 1,926,000
First Pacific (UK Listing) Yue Yuen Industrial Holdings (Hong Kong Listing)
3,776,200
0.98
5,896,872 ____________ 9,673,072 ____________
1.53 ______ 2.51 ______
5,625,910 ____________
1.46 ______
Cheung Kong Holdings 13,759,600 China Netcom Group Corp Hong Kong 4,674,288 China Shineway Pharmaceutical Group 3,248,157 CNOOC 8,086,614 Dah Sing Banking Group 3,766,134 Hang Lung Group 3,768,925 Hang Lung Properties 4,022,682 IT 5,094,290 New World Development 7,893,416 People’s Food Holdings 5,162,592 Swire Pacific ‘A’ 5,496,703 Wharf Holdings 8,077,537 ____________
3.57 1.21 0.84 2.10 0.98 0.98 1.04 1.32 2.05 1.34 1.43 2.10 ______
73,050,938 ____________
18.96 ______
509,917
0.13
3,434,295 4,137,751 ____________ 8,081,963 ____________
0.89 1.08 ______ 2.10 ______
5,742,733 ____________
1.49 ______
3,744,296 3,493,869 3,611,660 4,403,150 4,439,286 3,525,305 9,657,341 ____________
0.97 0.91 0.94 1.14 1.15 0.91 2.51 ______
32,874,907 ____________
8.53 ______
2,713,465 ____________
0.70 ______
3,349,015 3,341,657 2,537,859 3,379,401 2,040,663 5,715,642 ____________
0.87 0.87 0.66 0.87 0.53 1.48 ______
20,364,237 ____________
5.28 ______
5,882,880 4,743,996 1,580,773
1.53 1.23 0.41
China 5,831,000
China Shenhua Energy ‘H’
Hong Kong 1,412,000 3,215,500 7,769,000 13,518,400 2,026,000 2,123,000 2,731,000 20,000,000 6,425,000 10,000,000 621,500 2,300,000
India 121,500 818,500 730,000
Jaiprakash Associates UBS ELN (Wts 27/2/2006 – Jaiprakash Associates) UTI Bank
Holding 58,470 623,600 26,400 170,021 249,700 95,000 430,400 140,000 202,190 51,596 100,600 15,370
Ramayana Lestari Sentosa
Affin Holdings Astro All Asia Networks British American Tobacco Malaysia Commerce Asset Holdings DRB-Hicom Scomi Group Telekom Malaysia
Philippines 108,626,000
Filinvest Land
%
3,963,015 5,929,506 4,866,016 7,801,354 7,719,436 3,891,174 9,210,560 5,597,830 2,356,326 24,857,118 5,376,335 2,728,055 ____________
1.03 1.54 1.26 2.02 2.00 1.01 2.39 1.45 0.61 6.45 1.40 0.71 ______
96,504,374 ____________
25.04 ______
Advanced Semiconductor Engineering 6,237,020 Cathay Financial Holding 9,724,046 Chi Mei Optoelectronics GDR 3,899,280 Compal Electronics 3,883,323 Delta Electronics 5,722,405 D-Link 3,938,226 LITE-ON IT 8,283,516 Masterlink Securities 3,956,875 Pihsiang Machinery Manufacturing 1,944,515 ProMOS Technologies 7,635,043 Quanta Computer 12,823,317 Springsoft Inc 3,778,574 Taishin Financial Holdings 5,291,814 Taiwan Mobile 4,189,574 Test-Rite International 5,764,650 Wintek 5,638,635 ____________
1.62 2.52 1.01 1.01 1.49 1.02 2.15 1.03 0.50 1.98 3.33 0.98 1.37 1.09 1.50 1.46 ______
92,710,813 ____________
24.06 ______
5,519,477 5,612,443 2,741,709
1.43 1.46 0.71
2,638,586 916,021 6,137,082 3,363,555 421,836 ____________
0.69 0.24 1.59 0.87 0.11 ______
27,350,709 ____________
7.10 ______
374,693,121 ____________
97.23 ______
0 ____________ 0 ____________
0.00 ______ 0.00 ______
374,693,121
97.23
10,665,299 ____________ 385,358,420 ____________
2.77 ______ 100.00 ______
Thailand
Malaysia 9,360,000 2,435,900 328,700 3,313,000 11,474,800 8,990,000 3,669,500
Value (US$)
Taiwan 8,320,000 4,818,600 253,200 3,903,709 3,680,863 3,338,000 4,461,400 9,660,000 996,370 19,006,508 6,700,999 1,810,000 6,301,365 4,063,000 8,100,000 4,015,000
Indonesia 62,310,000
Description Hyundai Mobis Industrial Bank of Korea KCC Kookmin Bank Korea Electric Power KT KT ADR LG Household & Health Care Poongsan Samsung Electronics SK SK Telecom
2,111,200 18,548,000 16,180,000 5,000,000 12,366,300 24,377,200 5,912,700 764,300
Bangkok Bank Bank of Ayudhya Land & Houses MCOT – Mass Communication Organization of Thailand Sansiri True United Broadcasting United Broadcasting – NVDR
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Singapore 1,786,000 6,704,000 3,888,000 2,612,370 799,750 602,000
Cerebos Pacific Huan Hsin Holdings Jaya Holdings MobileOne Singapore Press Holdings Venture
44
GS Engineering & Construction GS Holdings Hanssem
COMMON STOCKS (SHARES) Hong Kong 9,828,600
Euro-Asia Agricultural Holdings
Total Unquoted Securities Total Portfolio
South Korea 176,900 199,364 262,710
Unquoted Securities
Merrill Lynch International Investment Funds
Other Net Assets Total Net Assets (US$)
Asian Dragon Fund
continued
Sector Breakdown as at 30 June 2005
Finance Information technology Telecommunication services Consumer discretionary Capital goods Consumer staples Energy Materials Utilities Healthcare Other net assets
% of net assets 29.3 23.8 11.4 9.4 9.1 4.6 3.5 3.3 2.0 0.8 2.8 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
45
Asian Tiger Bond Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
BONDS China US$2,250,000 US$750,000 US$550,000 US$750,000 US$1,000,000 US$2,500,000
AES China Generating 8.25% 26/6/2010 2,290,462 Asia Aluminum Holdings 8% 23/12/2011 736,041 CNOOC Finance 2003 5.5% 21/5/2033 530,605 Chaoda Modern Agriculture Holdings 7.75% 8/2/2010 726,496 Mandra Foresty Finance 15/5/2013 1,000,000 Sino-Forest 9.125% 17/8/2011 2,735,329 ____________ 8,018,933 ____________
US$260,000 US$2,300,000 US$2,000,000 US$1,150,000 US$2,000,000 US$2,100,000 US$4,450,000 US$2,000,000 US$575,000 US$1,700,000 US$1,375,000
City Telecom (Hong Kong) 8.75% 1/2/2015 2,463,371 CLP Power Hong Kong Financing EMTN 6.25% 8/5/2012 285,558 CKWH FRN (Perpetual) 2,703,443 CMHI Finance Cayman 5.375% 9/3/2015 2,008,832 COSCO Pacific Finance 5.875% 3/10/2013 1,194,044 Hongkong Land Finance 5.5% 28/4/2014 2,071,244 Hutchison Whampoa International 01/11 7% 16/2/2011 2,318,254 Hutchison Whampoa International 03/13 6.5% 13/2/2013 4,817,065 Hutchison Whampoa International 03/33 6.25% 24/1/2014 2,147,176 Jardine Strategic Finance 6.375% 8/11/2011 625,864 PCCW HKT Capital 7.75% 15/11/2011 1,977,028 Wing Hang Financial Holdings 5.25% 10/10/2013 1,400,546 ____________ 24,446,681 ____________
0.65 0.47 0.64 0.89 2.42 ______ 7.10 ______
2.18 0.25 2.40
US$750,000
1,714,558 ____________
US$500,000 US$500,000 US$1,000,000 US$1,000,000 US$1,250,000 US$1,000,000 US$2,000,000 US$1,950,000 US$500,000 US$1,850,000
1.06 1.84 2.05 4.27 1.90 0.56 1.75 1.24 ______ 21.64 ______
0.66 0.86 ______ 1.52 ______
US$1,725,000 US$326,348 US$505,896 US$192,727 US$1,000,000 US$550,000 US$550,000
46
Bank Negara Indonesia 10% 15/11/2012 483,750 Excelcomindo Finance 8% 27/1/2009 1,789,779 Indah Kiat International ‘C’ 0% 28/4/2024 75,060 Indah Kiat International ‘B’ 5.49% 28/4/2015 359,186 Indah Kiat International ‘A’ 5.49% 28/4/2015 163,818 Indah Kiat International Finance ‘C’ 12.5% 15/6/2006 665,000 Indosat Finance 7.75% 5/11/2010 572,774 Republic of Indonesia 6.75% 10/3/2014 551,445
US$600,000 US$1,313,000 US$500,000 US$250,000 US$1,100,000
US$1,925,000 US$5,650,000 US$1,575,000 US$825,000
Merrill Lynch International Investment Funds
MEI Euro Finance 8.75% 22/5/2010 ____________ 621,760
Globe Telecom 9.75% 15/4/2012 1,496,000 Philippine Long Distance Telephone EMTN 7.85% 6/3/2007 1,777,206 Philippine Long Distance Telephone EMTN 10.5% 15/4/2009 683,399 Philippine Long Distance Telephone 10.625% 15/5/2007 1,445,941 Philippine Long Distance Telephone 11.375% 15/5/2012 606,250 Republic of Philippines 8.25% 15/1/2014 253,750 Republic of Philippines 8.375% 12/3/2009 1,168,597 Republic of Philippines 8.875% 15/4/2008 954,559 Republic of Philippines 9% 15/2/2013 2,040,500 Republic of Philippines 9.5% 2/2/2030 5,822,890 Republic of Philippines 9.875% 15/1/2019 1,724,427 Republic of Philippines10.625% 16/3/2025 936,399 ____________ 18,909,918 ____________
2.36 0.45 0.46 0.96 1.12 1.26 1.01 2.25 1.80 0.53 1.96 ______ 14.16 ______
0.55 ______
1.33 1.57 0.60 1.28 0.54 0.22 1.04 0.85 1.81 5.16 1.53 0.83 ______ 16.76 ______
Singapore US$250,000 US$2,500,000 US$2,100,000
0.32 US$2,600,000 0.14 0.59 0.51 0.49
Government of Malaysia 8.75% 1/6/2009 2,660,936 Malaysian International Shipping 5% 1/7/2009 509,156 Maybank International FRN 7/2012 516,221 MISC Capital Solo 1/7/2014 1,088,713 Petroliam Nasional 7.625% 15/10/2026 1,262,337 Petronas Capital ‘144A’ 7% 22/5/2012 1,424,659 Petronas Capital 7% 22/5/2012 1,141,129 Petronas Capital 7.875% 22/5/2022 2,541,295 RHB Bank FRN 1/2013 2,034,379 Tenaga Nasional ‘144A’ 7.5% 1/11/2025 597,656 Tenaga Nasional 7.5% 1/11/2025 2,211,327 ____________ 15,987,808 ____________
Philippines US$1,360,000 US$1,700,000
0.43 1.58 0.07
2.07 ______ 7.10 ______
Mauritius US$600,000
Indonesia US$450,000
% 0.90
Malaysia US$2,300,000
US$875,000
Industrial Development Bank of India 4.75% 3/3/2009 741,003 Reliance Industries 10.375% 24/6/2016____________ 973,555
Description
8,011,074 ____________
1.78
India US$750,000
Value (US$)
Republic of Indonesia 7.25% 20/4/2015 1,012,762 Tjiwi Kimia Finance Mauritius 10% 1/8/2004 2,337,500 ____________
2.03
Hong Kong US$2,500,000
Holding US$1,000,000 US$5,500,000
US$2,000,000 US$925,000
DBS Bank 7.125% 15/5/2011 281,814 DBS Bank 7.875% 10/8/2009 2,822,785 Oversea-Chinese Banking 7.75% 6/9/2011 2,443,088 Singapore Telecommunications 7.375% 1/12/2031 3,377,850 SP Power Assets 5% 22/10/2013 2,059,826 United Overseas Bank 4.5% 2/7/2013 ____________ 901,633
0.25 2.50
2.99 1.83 0.80 ______
11,452,740 ____________
10.54 ______
2.17
Asian Tiger Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
US$500,000 US$1,200,000 US$1,000,000 US$1,000,000 US$1,000,000 US$500,000 US$900,000 US$1,000,000 US$1,300,000 US$1,500,000 US$250,000
US$3,000,000 US$2,675,000 US$1,000,000
Equus Cayman Finance 5.5% 12/9/2008 509,122 Export-Import Bank of Korea 5.25% 10/2/2014 1,239,274 Export-Import Bank of Korea EMTN 4.25% 6/11/2008 996,401 Export-Import Bank of Korea 5.125% 16/3/2015 1,022,247 GS Caltex 7.75% 25/7/2011 1,154,255 Hana Funding FRN (Pepetual) 595,023 Hanarotelecom 7% 1/2/2012 885,972 Hyundai Motor Manufacturing Alabama ‘144A’ 5.3% 19/12/2008 1,011,599 Industrial Bank of Korea 3.5% 11/6/2008 1,270,328 Kia Motors 9.375% 11/7/2006 1,563,613 MagnaChip Semiconductor / MagnaChip Semiconductor Finance ‘144A’ 8% 15/12/2014 234,375 Republic of Korea 4.875% 22/9/2014 3,040,038 Republic of Korea 8.875% 15/4/2008 3,009,166 Woori Bank FRN 13/3/2014 1,025,853 ____________
2.66 0.91 ______
17,557,266 ____________
15.56 ______
0.45
US$600,000
Bangkok Bank (Hong Kong) 9.025% 15/3/2029 Kasikornbank Public 8.25% 21/8/2016
Description PTT 5.75% 1/8/2014 Total Access Communications 8.375% 4/11/2006
1.10
Value (US$)
%
264,575
0.23
262,527 ____________ 3,276,161 ____________
0.23 ______ 2.90 ______
183,167 ____________
0.16 ______
110,180,066 ____________
97.63 ______
0.76 ______
Vietnam 0.88 0.91 1.02 0.53 0.79 0.90
US$250,000
Republic of Vietnam 3.75% 12/3/2028
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Unquoted Securities
1.13 1.39
BONDS
0.20
US$1,000,000
New ASAT Finance 9.25% 1/2/2011 ____________ 855,000
US$500,000
Paiton Energy Funding 9.34% 15/2/2014 536,320 PT Surabaya Agung 0% 9/12/1997 ____________ 0 536,320 ____________
Hong Kong
2.69
Thailand US$1,550,000
Holding US$250,000 US$250,000
South Korea
Indonesia
US$12,000,000,000
Total Unquoted Securities Total Portfolio
2,019,486
1.79
729,573
0.65
Other Net Assets Total Net Assets (US$)
0.47 0.00 ______ 0.47 ______
1,391,320 ____________ 111,571,386
1.23 ______ 98.86
1,287,345 ____________ 112,858,731 ____________
1.14 ______ 100.00 ______
Value date 21/11/2005 21/11/2005 22/11/2005 21/11/2005 22/11/2005 22/11/2005 22/11/2005 8/12/2005 8/12/2005
Unrealised profit/(loss) US$ (27,449) (61,114) 11,679 14,246 (46,681) (273,719) (62,201) (34,983) (14,820) ________
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases KRW1,078,000,000 PHP28,000,000 KRW515,750,000 MYR5,625,000 SGD1,622,500 THB19,195,000 TWD15,600,000 SGD6,629,000 TWD30,950,000 PHP56,630,000 THB38,440,000 US$1,937,950 TRL3,498,000,000,000 US$937,561
Sales US$1,069,444 US$500,000 US$500,000 US$1,489,446 US$1,000,000 US$500,000 US$500,000 US$3,982,577 US$1,000,000 US$1,043,102 US$1,000,000 TRL3,498,000,000,000 US$2,000,000 THB38,440,000
Value date 18/7/2005 25/7/2005 26/7/2005 26/7/2005 26/7/2005 26/7/2005 26/7/2005 8/8/2005 16/8/2005 19/9/2005 8/10/2005 8/10/2005 8/10/2005 8/10/2005
Unrealised profit/(loss) US$ (18,173) (1,080) 2,954 (8,694) (36,535) (35,257) (7,255) (44,350) (22,570) (37,046) (69,142) (647,156) 585,106 6,703
Purchases THB40,090,000 SGD3,248,000 US$2,000,000 TWD31,920,000 PHP110,400,000 THB153,600,000 TWD123,920,000 KRW2,034,500,000 MYR7,588,000 Net unrealised loss
Sales US$1,000,000 US$2,000,000 THB81,960,000 US$1,000,000 US$2,000,000 US$4,000,000 US$4,000,000 US$2,018,954 US$2,012,732
(827,537) ________
Note: The net unrealised loss attributed to these transactions is included above in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
47
Conservative Allocation Fund (Euro) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON / PREFERRED STOCKS (SHARES) Endurance Specialty Holdings Tyco International
12,163 62,016 ____________ 74,179 ____________
0.06 0.31 ______ 0.37 ______
16,841 ____________
0.08 ______
8,881 17,496 22,158 28,271 28,288 16,447 ____________
0.04 0.09 0.11 0.14 0.14 0.08 ______
121,541 ____________
0.60 ______
28,025 ____________
0.14 ______
16,405 ____________
0.08 ______
5,435 10,958 8,276 ____________
0.03 0.05 0.04 ______
24,669 ____________
0.12 ______
Brazil 800
CVRD – Cia Vale do Rio Doce ADR
Canada 2,400 450 410 980 900 580
Abitibi-Consolidated Niko Resources Petro-Canada Shoppers Drug Mart Talisman Energy Teck Cominco ‘B’
Cayman Islands 750
ACE
Denmark 390
Novo-Nordisk ‘B’
Finland 236 222 780
Cargotec ‘B’ Kone ‘B’ Stora Enso ‘R’
AXA BNP Paribas Sanofi-Aventis Total
1,000 1,000 500 2,000 1,000 400 200 100 400 1 3 1,000 1,500 7 2,000 1,000 100 1,000 100 2 100 100 200 2,000 400 900 2,000
Ajinomoto Asahi Breweries Bandai Bank of Yokohama COMSYS Holdings Denso FamilyMart Funai Electric JSR Millea Holdings Mitsubishi Tokyo Financial Group Mitsui & Co Nissan Motor NTT DoCoMo Obayashi Onward Kashiyama ORIX Ricoh Sumisho Computer Systems Sumitomo Mitsui Financial Group Takefuji THK TIS Tokyo Gas Toyota Industries Toyota Motor Yokohama Rubber
915 31,977 39,045 21,315 57,761 ____________
0.16 0.19 0.10 0.29 ______
150,098 ____________
0.74 ______
25,160 19,740 ____________
0.12 0.10 ______
44,900 ____________
0.22 ______
35,710 ____________
0.18 ______
SES Global FDR
E.ON Fresenius Medical Care
ABN AMRO Holding ING Groep Royal Numico TNT
Amdocs
Allied Irish Banks
20,400 25,032 ____________
DNB NOR Statoil
48
Enel ENI Fastweb
Southern Peru Copper
0.13 ______
1.26 ______
11,245 ____________
0.06 ______
34,489 30,706 14,859 18,462 ____________
0.17 0.15 0.08 0.09 ______
98,516 ____________
0.49 ______
22,594 28,849 ____________ 51,443 ____________
0.11 0.14 ______ 0.25 ______
740,296 ____________
3.67 ______
21,638 ____________
0.11 ______
14,599 ____________
0.07 ______
Spain
Italy 2,020 345 430
254,209 ____________
Peru
Ireland 1,400
0.05 0.05 0.04 0.05 0.04 0.04 0.02 0.04 0.03 0.06 0.10 0.04 0.06 0.04 0.04 0.05 0.06 0.06 0.01 0.06 0.03 0.01 0.03 0.03 0.05 0.13 0.04 ______
Norway 2,610 1,710
Guernsey 1,610
9,256 9,908 8,394 9,608 7,682 7,569 4,766 8,529 7,015 11,167 21,157 7,869 12,343 8,604 8,948 10,522 12,471 12,988 1,952 11,242 5,621 1,716 5,681 6,220 9,083 26,778 7,120 ____________
Netherlands 1,689 1,310 450 880
Germany 340 280
%
Luxembourg
France 1,530 685 313 295
Value (e)
Japan
Bermuda 390 2,550
Description
1,591 14,584 7,338 15,364 ____________
0.07 0.04 0.07 ______
37,286 ____________
0.18 ______
Merrill Lynch International Investment Funds
Telefonica
Sweden 1,720
SKF ‘B’
Conservative Allocation Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
Switzerland 630 141 60 755 160 27 30 40 510 650
Credit Suisse Group Holcim Nobel Biocare Holding Novartis Roche Holdings (Pref) Schindler Holding Serono ‘B’ Straumann Holding Swiss Reinsurance UBS
20,622 7,137 10,101 29,808 16,786 8,014 15,882 7,024 25,979 42,175 ____________
0.10 0.04 0.05 0.15 0.08 0.04 0.08 0.03 0.13 0.21 ______
183,528 ____________
0.91 ______
21,897 9,051 23,376 ____________
0.11 0.04 0.12 ______
54,324 ____________
0.27 ______
15,812 31,370 5,288 3,263 11,734 28,782 14,068 11,757 10,805 24,858 21,007 19,437 6,811 25,998 20,508 30,585 31,691 42,734 21,835 10,918 13,604 ____________
0.08 0.16 0.03 0.02 0.06 0.14 0.07 0.06 0.05 0.12 0.10 0.10 0.03 0.13 0.10 0.15 0.16 0.21 0.11 0.05 0.07 ______
402,865 ____________
2.00 ______
10,773 4,543 26,306 19,800 43,731 14,606 30,865 17,713 18,827
0.05 0.02 0.13 0.10 0.22 0.07 0.15 0.09 0.09
Taiwan 13,000 2,200 22,000
Chunghwa Telecom Compal Electronics GDR Far EasTone Telecommunications
United Kingdom 460 3,783 500 240 1,345 1,790 1,793 1,490 513 2,030 1,040 870 951 3,207 2,752 1,250 3,975 1,690 1,600 5,300 1,700
AstraZeneca Barclays Barratt Developments Berkeley Group Holdings BP British American Tobacco British Sky Broadcasting Cadbury Schweppes Cobham Diageo GlaxoSmithKline Imperial Tobacco Group Johnston Press National Grid Transco Prudential Reckitt Benckiser Reed Elsevier Royal Bank of Scotland Group Smiths Group Vodafone Group William Hill
USA 265 280 1,210 365 900 270 1,270 480 1,170
Abbott Laboratories AGCO Alcoa Altria Group American International Group Apache Corporation Bank of New York Caremark Rx Cisco Systems
Holding 548 600 366 920 316 320 430 500 490 701 390 400 360 450 575 1,010 310 170 820 572 450 465 990 1,610 800 180 3,077 680 690 920 150 300 1,300 515 1,333 90 610 1,200 630 330 430 900 710 230 220 940 930 200
Description Clear Channel Communications ConocoPhillips Countrywide Financial Dell DR Horton EOG Resources Estee Lauder ‘A’ Exxon Mobil Fannie Mae First Data First Horizon National Gannett Grainger (WW) Guidant IBM International Game Technology ITT Industries Kinetic Concepts Lam Research Lexmark International ‘A’ Lilly (Eli) & Co Lowe’s Maxim Integrated Products MBNA McGraw-Hill Medtronic Microsoft Morgan Stanley Nextel Communications ‘A’ North Fork Bancorporation Omnicom Group Pall PanAmSat Holding PepsiCo Pfizer Phelps Dodge PNC Financial Services Group Praxair Ross Stores Smith International Sprint (FON Group) St Paul Travelers United Technologies Valero Energy Valspar Viacom ‘B’ Wachovia WellPoint
Total Common / Preferred Stocks (Shares)
Value (e)
%
14,105 28,895 11,755 30,341 9,868 15,047 13,853 24,158 23,789 23,270 13,865 23,822 16,429 25,400 35,766 23,474 25,199 8,524 19,861 31,010 20,861 22,729 31,508 35,336 29,370 7,755 64,011 30,063 18,641 21,542 9,995 7,642 22,181 23,170 30,627 7,086 27,636 47,230 15,405 17,540 9,013 29,831 30,683 15,092 8,797 25,434 39,033 11,762 ____________
0.07 0.14 0.06 0.15 0.05 0.07 0.07 0.12 0.12 0.12 0.07 0.12 0.08 0.13 0.18 0.12 0.12 0.04 0.10 0.15 0.10 0.11 0.16 0.17 0.15 0.04 0.32 0.15 0.09 0.11 0.05 0.04 0.11 0.11 0.15 0.04 0.14 0.23 0.08 0.09 0.04 0.15 0.15 0.07 0.04 0.13 0.19 0.06 ______
1,265,568 ____________ 3,672,917 ____________
6.27 ______ 18.20 ______
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
49
Conservative Allocation Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS MSCI OPAL ‘A’ 0% 7/4/2007
453,260 ____________
2.25 ______
e100,000 e300,000 e250,000 e500,000
Caisse Nationale des Caisses d’Epargne et de Prevoyance EMTN FRN 19/8/2005 299,805 LVMH Moet Hennessy Louis Vuitton 5% 27/7/2006 102,892 Natexis Banque Populaires FRN 17/11/2006 300,133 RCI Banque EMTN 2.32% 6/7/2007 250,097 Societe Generale EMTN FRN 30/6/2006 ____________ 500,248
0.51 1.49 1.24 2.48 ______
Caixa Finance EMTN FRN 21/11/2006 300,060 Cooper Industries Finance 6.25% 25/10/2005 177,049 Fortis Finance EMTN 2.27% 19/6/2006 ____________ 300,405 777,514 ____________
1.49
1,453,175 ____________
7.20 ______
3,145,077 1,051,210 1,088,598 1,091,613 1,098,080 1,077,805 52,175
15.59 5.21 5.39 5.41 5.44 5.34 0.26
99,961 ____________ 8,704,519 ____________
0.50 ______ 43.14 ______
Germany 2.5% 22/9/2006 Germany ‘97’ 6% 4/7/2007 Germany ‘98’ 5.25% 4/1/2008 Germany ‘139’ 4% 16/2/2007 Germany ‘141’ 4.25% 15/2/2008 Germany ‘142’ 3% 11/4/2008 Germany ‘145’ 3.5% 9/10//2009 Volkswagen Bank EMTN 2.27% 28/6/2006
HSH N Finance Guernsey EMTN FRN 5/10/2007
e500,000 e100,000
Credit Agricole EMTN 2.11% 15/9/2006 499,888 Royal Bank of Scotland 5.5% 31/12/2009____________ 102,190 602,078 ____________
2.48 0.50 ______ 2.98 ______
300,165 250,350
1.49 1.24
499,525 ____________ 1,050,040 ____________
2.47 ______ 5.20 ______
13,541,374 ____________
67.11 ______
National Australia Bank 2.15% 7/5/2005 ____________ 499,854
2.47 ______
USA e300,000 e250,000 e500,000
Citigroup EMTN FRN 10/11/2008 HSBC Bank USA FRN 7/9/2008 JPMorgan Chase & Co EMTN FRN 2/3/2015
Total Bonds
COMMERCIAL PAPER Australia e500,000
Sweden e500,000
Nordea Bank 2.15% 7/1/2005
Total Commercial Paper 500,788 ____________
2.48 ______
Total Portfolio Other Net Assets Total Net Assets (e)
Sector Breakdown as at 30 June 2005
Fixed interest Finance Materials Consumer discretionary Healthcare Information technology Capital goods Energy Consumer staples Telecommunication services Utilities Other net assets
0.88 1.49 ______ 3.86 ______
United Kingdom
Guernsey e500,000
%
1.48
Germany e3,126,000 e976,000 e1,012,000 e1,058,000 e1,042,000 e1,053,000 e50,000 e100,000
e300,000 e175,000 e300,000
France e300,000
Value (e)
Netherlands Brazil
US$7,500
Description
% of net assets 69.6 6.8 4.3 1.7 1.5 1.5 1.5 1.4 0.8 0.8 0.4 9.7 ____________ 100.0 ____________
499,971 ____________ 999,825 ____________
2.48 ______ 4.95 ______
18,214,116
90.26
1,964,868 ____________ 20,178,984 ____________
9.74 ______ 100.00 ______
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases e1,480,052 A$2,500,000 e487,466 CHF1,130,000 e148,480 £407,000 £53,000 e513,977 ¥68,586,000 e2,547,443 US$3,659,471 Net unrealised loss
Sales A$2,500,000 e1,570,046 CHF750,000 e736,495 £100,000 e607,688 US$95,844 ¥68,731,000 e512,311 US$3,145,766 e2,946,117
Value date 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005
Unrealised profit/(loss) e (94,756) 4,762 3,085 (6,694) (175) (2,663) (773) (1,376) 1,955 (61,131) 88,439 ________ (69,327) ________
Note: The net unrealised loss attributed to these transactions is included above in Other Net Assets (see Note 2c).
50
Merrill Lynch International Investment Funds
Conservative Allocation Fund (Euro)
continued
Open Futures Contracts as at 30 June 2005 Number of Contracts 3 6 (6) (36) (1) 8 (13) (10)
Issuer Hang Seng SGX Taiwan DJ Euro Stoxx 50 Eurex Schatz FTSE 100 Nikkei 225 (Simex) US Treasury 10Yr Note STD & Poors E-Mini
Total commitment
Expiration Value date e July 2005 227,408 July 2005 128,749 September 2005 (192,000) September 2005 (3,849,120) September 2005 (76,476) September 2005 346,544 September 2005 (1,223,366) September 2005 __________ (500,373) (5,138,634) __________
Note: The net unrealised loss of e42 attributed to these transactions is included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
51
Conservative Allocation Fund (US Dollar) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON / PREFERRED STOCKS (SHARES) Bermuda 140 1,200
Endurance Specialty Holdings Tyco International
CVDR – Cia Vale do Rio Doce ADR
Abitibi-Consolidated Niko Resources Petro-Canada Shoppers Drug Mart Talisman Energy Teck Cominco ‘B’
40,449 ____________
0.53 ______
9,644 ____________
0.13 ______
4,907 9,843 13,031 14,955 15,158 9,231 ____________
0.06 0.13 0.17 0.20 0.20 0.12 ______
67,125 ____________
0.88 ______
12,614 ____________
0.17 ______
9,128 ____________
0.12 ______
5,636 10,830 4,349 ____________
0.07 0.14 0.06 ______
20,815 ____________
0.27 ______
17,889 21,920 11,575 31,866 ____________
0.23 0.29 0.15 0.42 ______
83,250 ____________
1.09 ______
17,842 11,049 ____________ 28,891 ____________
0.24 0.14 ______ 0.38 ______
3,400
20,055 ____________
0.26 ______
738
Telefonica
12,674 ____________
0.17 ______
800
SKF ‘B’
7,834 5,103 8,615 ____________
0.10 0.07 0.11 ______
21,552 ____________
0.28 ______
280 67 23 339
Cayman Islands 280
ACE
Denmark 180
Novo-Nordisk ‘B’
Finland 203 182 340
Cargotec ‘B’ Kone ‘B’ Stora Enso ‘R’
France 710 319 141 135
AXA BNP Paribas Sanofi-Aventis Total
Asahi Breweries Bandai Bank of Yokohama COMSYS Holdings Denso FamilyMart Funai Electric JSR Mitsubishi Tokyo Financial Group Nissan Motor NTT DoCoMo Obayashi ORIX Ricoh Sumisho Computer Systems Sumitomo Mitsui Financial Group THK TIS Tokyo Gas Toyota Industries Toyota Motor Yokohama Rubber
0.07 0.46 ______
Canada 1,100 210 200 430 400 270
500 200 1,000 1,000 200 100 100 200 2 900 3 1,000 100 1,000 100 1 100 100 1,000 200 400 1,000
5,264 35,185 ____________
Brazil 380
Description
E.ON Fresenius Medical Care
Amdocs
Allied Irish Banks
52
Enel ENI Fastweb
155,968 ____________
2.05 ______
SES Global FDR
6,341 ____________
0.08 ______
ABN AMRO Holding ING Groep Royal Numico TNT
18,512 17,237 8,359 11,382 ____________
0.24 0.23 0.11 0.15 ______
55,490 ____________
0.73 ______
DNB NOR Statoil
12,733 15,458 ____________ 28,191 ____________
0.17 0.20 ______ 0.37 ______
148,751 ____________
1.95 ______
12,100 ____________
0.16 ______
8,186 ____________
0.11 ______
11,049 4,088 4,668 16,135
0.14 0.05 0.06 0.21
Peru Southern Peru Copper
Spain Sweden
Italy 900 199 200
0.08 0.05 0.08 0.12 0.06 0.04 0.13 0.06 0.21 0.12 0.06 0.07 0.20 0.21 0.03 0.09 0.03 0.04 0.05 0.07 0.19 0.06 ______
Norway 1,220 760
Ireland 588
5,972 4,048 5,791 9,261 4,563 2,873 10,282 4,228 17,004 8,928 4,445 5,394 15,034 15,658 2,354 6,776 2,069 3,424 3,750 5,475 14,347 4,292 ____________
Netherlands 752 610 210 450
Guernsey 750
%
Luxembourg 428
Germany 200 130
Value (US$)
Japan
Switzerland
Merrill Lynch International Investment Funds
Credit Suisse Group Holcim Nobel Biocare Holding Novartis
Conservative Allocation Fund (US Dollar)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 80 12 15 14 240 300
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Description
Value (US$)
%
Holding
Roche Holdings (Pref) Schindler Holding Serono ‘B’ Straumann Holding Swiss Reinsurance UBS
10,118 4,294 9,573 2,964 14,738 23,467 ____________
0.13 0.06 0.13 0.04 0.19 0.32 ______
101,094 ____________
1.33 ______
12,184 5,059 12,810 ____________
0.16 0.07 0.16 ______
30,053 ____________
0.39 ______
8,702 17,574 2,805 2,131 8,108 16,282 7,548 6,659 6,144 12,473 11,688 9,965 3,384 14,658 11,526 17,403 16,964 24,081 11,516 6,144 7,717 ____________
0.11 0.23 0.04 0.03 0.11 0.21 0.10 0.09 0.08 0.16 0.15 0.13 0.05 0.19 0.15 0.23 0.22 0.32 0.15 0.08 0.10 ______
180 170 210 280 470 160 80 380 260 210 215 460 720 380 80 1,431 310 320 430 70 100 600 280 618 40 280 650 290 100 200 330 320 110 100 440 430 80
223,472 ____________
2.93 ______
Taiwan 6,000 1,020 10,000
Chunghwa Telecom Compal Electronics GDR Far EasTone Telecommunications
United Kingdom 210 1,758 220 130 771 840 798 700 242 845 480 370 392 1,500 1,283 590 1,765 790 700 2,474 800
AstraZeneca Barclays Barratt Developments Berkeley Group Holdings BP British American Tobacco British Sky Broadcasting Cadbury Schweppes Cobham Diageo GlaxoSmithKline Imperial Tobacco Group Johnston Press National Grid Transco Prudential Reckitt Benckiser Reed Elsevier Royal Bank of Scotland Group Smiths Group Vodafone Group William Hill
USA 120 130 580 160 400 130 590 220 550 241 400 168 420 151 130 200 210 230 320 180
Abbott Laboratories AGCO Alcoa Altria Group American International Group Apache Bank of New York Caremark Rx Cisco Systems Clear Channel Communications ConocoPhillips Countrywide Financial Dell DR Horton EOG Resources Estee Lauder ‘A’ Exxon Mobil Fannie Mae First Data First Horizon National
Description
Value (US$)
%
Gannett Grainger (WW) Guidant IBM International Game Technology ITT Industries Kinetic Concepts Lam Research Lexmark International ‘A’ Lilly (Eli) & Co Lowe’s Maxim Integrated Products MBNA McGraw-Hill Medtronic Microsoft Morgan Stanley Nextel Communications ‘A’ North Fork Bancorporation Omnicom Group Pall PanAmSat Holding PepsiCo Pfizer Phelps Dodge PNC Financial Services Group Praxair Ross Stores Smith International Sprint (FON Group) St Paul Travelers United Technologies Valero Energy Valspar Viacom ‘B’ Wachovia WellPoint
12,924 9,353 14,291 20,997 13,169 15,680 4,836 11,096 16,994 11,737 12,670 17,650 19,051 16,819 4,155 35,890 16,523 10,422 12,139 5,623 3,071 12,342 15,187 17,119 3,797 15,294 30,844 8,549 6,408 5,054 13,187 16,672 8,702 4,821 14,353 21,758 5,672 ____________
0.17 0.12 0.19 0.28 0.17 0.21 0.06 0.15 0.22 0.15 0.17 0.23 0.25 0.22 0.05 0.47 0.22 0.14 0.16 0.07 0.04 0.16 0.20 0.22 0.05 0.20 0.40 0.11 0.08 0.07 0.17 0.22 0.11 0.06 0.19 0.29 0.07 ______
709,540 ____________ 1,805,383 ____________
9.30 ______ 23.68 ______
300,560 ____________
3.94 ______
182,150 ____________
2.39 ______
230,443 ____________
3.02 ______
319,757 ____________
4.19 ______
119,466 ____________
1.57 ______
Total Common / Preferred Stocks (Shares) 5,881 2,543 15,202 10,464 23,432 8,479 17,287 9,788 10,670 7,478 23,224 6,505 16,699 5,685 7,370 7,768 12,233 13,462 12,806 7,715
0.08 0.03 0.20 0.14 0.31 0.11 0.23 0.13 0.14 0.10 0.30 0.09 0.22 0.07 0.10 0.10 0.16 0.18 0.17 0.10
BONDS Australia US$300,000
National Australia Bank EMTN FRN 15/3/2007
Brazil US$2,500
MSCI OPAL ‘A’ 0% 7/4/2007
Finland US$230,000
GE Dealer Floorplan Master Note Trust ‘2004-2 A’ FRN 20/7/2009
Germany e265,000
Germany 2.5% 16/9/2005
International US$120,000
Nordic Investment Bank 2.75% 11/1/2006
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
53
Conservative Allocation Fund (US Dollar)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
US$300,000 US$300,000
HBOS Treasury Services EMTN FRN 1/10/2007 Northern Rock EMTN FRN 10/11/2008
300,585 300,516 ____________
3.94 3.94 ______
601,101 ____________
7.88 ______
USA US$250,000 US$250,000 US$250,000 US$200,000 US$300,000 US$250,000 US$250,000 US$100,000
Bank of America MTNK FRN 18/9/2009 Bank One FRN 3/8/2005 Berkshire Hathaway Finance ‘144A’ 3.7% 11/1/2008 Citigroup EMTN FRN 4/6/2007 Deutsche Bank FRN 2/3/2006 Republic of Finland 5.875% 27/2/2006 Honda Auto Receivables Owner Trust ‘2003-2 A4’ 2.16% 21/10/2008 Nelnet Student Loan Trust ‘2005-1 A1’ FRN 25/4/2011
250,251 249,961
3.28 3.28
250,276 200,144 300,150 253,532
3.28 2.62 3.94 3.32
244,644
3.21
100,028
1.31
Sector Breakdown as at 30 June 2005
Fixed interest Finance Materials Capital goods Consumer discretionary Information technology Healthcare Energy Consumer staples Telecommunication services Utilities Other net assets
% of net assets 70.6 7.3 2.7 2.3 2.3 2.2 2.0 2.0 1.4 1.0 0.5 5.7 ____________ 100.0 ____________
Open Futures Contracts as at 30 June 2005 Number of Contracts 1 2 2 (5) (1) 2 (7) (4) Total commitment
Issuer Hang Seng SGX Taiwan Eurex Euro Bund DJ Euro Stoxx 50 FTSE 100 Nikkei 225 (Simex) STD & Poors E-Mini US Treasury 10YR Note
Expiration Value date US$ July 2005 91,388 July 2005 51,740 September 2005 297,480 September 2005 (192,887) September 2005 (92,191) September 2005 104,445 September 2005 (422,275) September 2005 __________ (453,812) (616,112) __________
Note: The net unrealised loss of US$3,822 attributed to these transactions is included above in Other Net Assets (see Note 2c).
54
Holding US$250,000
United Kingdom
Merrill Lynch International Investment Funds
US$495,000 US$300,000 US$250,000
Description
Value (US$)
%
Residential Asset Mortgage Products ‘2004-RS9 AII2’ FRN 25/5/2034 US Treasury 1.875% 30/11/2005 US Treasury Bill 0% 8/9/2005 Wells Fargo/Old FRN 10/3/2008
251,265 492,176 298,230 250,043 ____________
3.30 6.45 3.91 3.28 ______
3,140,700 ____________ 4,894,177 ____________
41.18 ______ 64.17 ______
489,751 ____________ 489,751 ____________
6.42 ______ 6.42 ______
7,189,311
94.27
437,052 ____________ 7,626,363 ____________
5.73 ______ 100.00 ______
Total Bonds
COMMERCIAL PAPER Ireland US$500,000
Depfa Bank 0% 13/1/2006
Total Commercial Paper Total Portfolio Other Net Assets Total Net Assets (US$)
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases US$369,005 e29,000 Net unrealised profit
Sales e304,000 US$35,069
Value date 18/8/2005 18/8/2005
Unrealised profit/(loss) US$ 1,974 (56) ________ 1,918 ________
Note: The net unrealised profit attributed to these transactions is included above in Other Net Assets (see Note 2c).
Corporate Bond Fund (Euro) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS
e100,000
e100,000
Erste Bank der Oesterreichischen EMTN 5.25% 14/12/2011 113,223 Telekom Finanzmanagement EMTN 3.375% 27/1/2010 102,155 ____________ 215,378 ____________
1.01 0.92 ______ 1.93 ______
Belgium e100,000 e100,000
Elia System Operator 4.75% 13/5/2014 109,790 Fortis Bank 4.625% 27/10/2014 (Perpetual) 105,007 ____________ 214,797 ____________
0.98 0.94 ______ 1.92 ______
e110,000 e50,000 e100,000 e50,000 e25,000 e50,000 e40,000 e285,000 e50,000 e90,000
Cayman Islands e100,000 e130,000
CAM International EMTN 5.75% 3/4/2012 105,802 Santander Central Hispano Issuances EMTN 5.25% 21/9/2011 134,605 ____________ 240,407 ____________
0.95
Dong 3.5% 29/6/2012 70,340 Dong 5.5% 29/6/2005 121,380 Nykredit Realkredit 4.901% 22/9/2014 (Perpetual) 107,718 ____________ 299,438 ____________ Sampo 4.625% 21/4/2014
0.63 1.09 0.96 ______ 2.68 ______ 0.66 ______
Air Liquide EMTN 4.75% 25/6/2014 44,270 BNP Paribas EMTN 5.25% 17/12/2012 142,039 Caisse Nationale des Caisses d’Epargne et de Prevoyance EMTN 5.25% 30/7/2014 (Perpetual) 111,129 CIF Euromortgage 3.25% 1/12/2011 30,683 Credit Lyonnais EMTN 5% 15/11/2012 53,025 Danone Finance EMTN 5.125% 8/6/2006 51,315 Dexia Credit Local MTN1 5.25% 25/4/2008 151,315 France Telecom EMTN 4.625% 23/1/2012 97,461 France Telecom EMTN 7% 23/12/2009 117,300 France Telecom EMTN 8.125% 28/1/2033 46,206 Gecina EMTN 3.625% 17/10/2007 40,826 GIE PSA Tresorerie 5.875% 27/9/2011 92,568 GIE Suez Alliance 5.5% 20/2/2009 54,899 Groupe Auchan EMTN 3.5% 22/7/2008 30,888 LVMH Moet-Hennessy Louis Vuitton EMTN 4.625% 1/7/2011 113,106 Pinault-Printemps-Redoute EMTN 5.25% 29/3/2011 41,298 Renault EMTN 4.625% 28/5/2010 59,056 Societe Generale EMTN 5.625% 13/2/2012 115,554 Technip 4.625% 26/5/2011 64,324 TPSA Eurofinance France 4.625% 5/7/2011 43,282 Unibail EMTN 4% 29/10/2011 139,758 Veolia Environnement 6.125% 25/11/2033 64,257 Veolia Environnement EMTN 4.875% 28/5/2013 38,617 ____________
0.40 1.27
e30,000 e50,000 e50,000 e140,000 e90,000 e100,000 e30,000 e40,000 e80,000 e50,000 e30,000 e105,000 e38,000 e55,000 e100,000 e60,000 e40,000 e135,000 e52,000 e35,000
1,743,176 ____________
0.99 0.27 0.47 0.46 1.35 0.87 1.05 0.41 0.37 0.83 0.49 0.28 1.01 0.37 0.53 1.03 0.58 0.39 1.25 0.58 0.35 ______ 15.60 ______
0.90 1.09 0.52 0.91 0.46 0.24 0.47 0.38 3.16 0.45 0.87
1,131,338 ____________
0.68 ______ 10.13 ______
105,904 ____________
0.95 ______
89,460 ____________
0.80 ______
163,847
1.47
23,312 ____________ 187,159 ____________
0.21 ______ 1.68 ______
ACEA 4.875% 23/7/2014 54,835 Autostrade EMTN 5% 9/6/2014 110,426 Telecom Italia EMTN 5.25% 17/3/2055 ____________ 96,140 261,401 ____________
0.49 0.99 0.86 ______
Public Power FRN 4.5% 12/3/2009
Guernsey e75,000
73,850 ____________
AHBR Allgemeine Hypothekenbank Rheinboden ’356’ 2.5% 18/6/2007 100,726 Allianz EMTN 5.5% 15/1/2014 (Perpetual) 121,391 Bayer EMTN 6% 10/4/2012 58,209 Bayerische Hypp-und Vereinsbank ’1162’ 3.5% 3/2/2015 102,077 Bosch (Robert) EMTN 5.25% 19/7/2006 51,571 Germany ’03’ 3.75% 4/7/2013 26,409 Germany ’145’ 3.5% 9/10/2009 52,175 Metro EMTN 5.125% 13/2/2008 42,592 Nuernberger Hypothekenbank ’392’ 6% 14/9/2015 353,684 Thyssenkrupp EMTN 4.375% 18/3/2015 50,178 Volkswagen Financial Services EMTN 4.75% 19/7/2011 96,737 Wuerttembergische Hypothekenbank EMTN 3.5% 27/1/2006 75,589 ____________
Credit Suisse Finance Guernsey V 6.905% 7/11/2011 (Perpetual)
Ireland e150,000 e20,000
Depfa ACS Bank 4.375% 15/1/2015 Irish Life & Permanent EMTN 6.25% 15/2/2011
France e40,000 e125,000 e100,000
%
Greece e100,000
Finland e70,000
e75,000
1.20 ______ 2.15 ______
Denmark e70,000 e120,000 e100,000
Value (e)
Germany Austria
e100,000
Description
Italy e50,000 e100,000 e100,000
2.34 ______
Japan e100,000 e50,000
Resona Bank EMTN 3.75% 15/4/2015 Sumitomo Bank 4.375% 27/10/2014
100,884 52,509 ____________ 153,393 ____________
0.90 0.47 ______ 1.37 ______
ASIF III (Jersey) EMTN 5.125% 10/5/2007 131,238 HSBC Capital Funding/ Jersey Channel Islands 5.369% 24/3/2014 (Perpetual) (Pref) 111,945 UBS Jersey EMTN 4.5% 16/9/2019 130,212 ____________
1.17
Jersey e125,000 e100,000
e120,000
373,395 ____________
1.00 1.17 ______ 3.34 ______
16,115
0.14
20,844
0.19
33,542
0.30
53,147
0.48
Luxembourg e15,000 e20,000 e30,000 e50,000
Ciba Specialty Chemicals Finance Luxembourg 4.875% 20/6/2018 Glencore Finance Europe/Luxembourg EMTN 5.375% 30/9/2011 Hannover Finance Luxembourg 5.75% 26/2/2024 Holcim Finance/Luxembourg EMTN 4.375% 23/6/2010
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
55
Corporate Bond Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding e80,000 e100,000 e80,000 e100,000 e100,000
Description SES Global 4.5% 19/11/2008 Telecom Italia Finance EMTN 5.875% 24/1/2008 Telecom Italia Finance EMTN 6.375% 20/4/2006 Telecom Italia Finance EMTN 7.25% 24/4/2012 Tyco International Group 6.125% 4/4/2007
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
Holding
Description
83,961
0.75
e40,000
108,020
0.97
e50,000
Vattenfall Treasury EMTN 5.375% 29/4/2024 Vattenfall Treasury EMTN 6.125% 21/9/2007
82,570
0.74
121,940
1.09
106,173 ____________ 626,312 ____________
0.95 ______ 5.61 ______
Netherlands e90,000
e60,000 e65,000 e90,000 e50,000 e150,000 e50,000 e130,000 e205,000 e50,000 e60,000 e50,000 e80,000 e25,000 e70,000 e50,000 e70,000 e50,000 e35,000 e50,000 e30,000 e75,000 e80,000
ABN Amro Bouwfonds Nederlandse Gemeenten EMTN 4.625% 28/10/2013 99,504 Aegon EMTN 4.625% 16/4/2008 63,556 Brisa Finance 4.875% 20/12/2006 67,431 British American Tobacco Holdings EMTN 4.375% 15/6/2011 94,518 DaimlerChrysler International Finance EMTN 7% 21/3/2011 59,208 Deutsche Telekom International Finance 7.5% 29/5/2007 164,310 Deutsche Telekom International Finance 8.125% 29/5/2012 64,772 Deutsche Telekom International Finance EMTN 4% 19/1/2015 133,939 E.ON International Finance EMTN 5.75% 29/5/2009 229,088 Eneco Holdings EMTN 4.125% 10/6/2010 52,673 Generali Finance 4.75% 12/5/2014 67,155 ING Bank EMTN 5.875% 23/2/2011 57,538 ING Verzekeringen 6.25% 21/6/2021 93,040 International Endesa EMTN 5.375% 21/2/2013 28,461 Munich Re Finance 6.75% 21/6/2023 83,495 Red Electrica de Espana Finance EMTN 4.75% 18/9/2013 55,343 Royal KPN EMTN 4% 22/6/2015 70,291 Royal KPN EMTN 4.75% 5/11/2008 53,300 RWE Finance EMTN 5.125% 23/7/2018 40,261 Saint-Gobain Nederland 5% 25/4/2014 55,650 Schiphol Nederland EMTN 4.375% 8/7/2013 32,326 Volkswagen International Finance EMTN 4.125% 22/5/2009 78,738 Volkswagen International Finance EMTN 4.875% 22/5/2013 86,584 ____________ 1,831,181 ____________
e100,000
0.85
e50,000 e50,000 e90,000
0.53 1.47
e60,000 e100,000
0.58
e75,000
1.20
e10,000 e25,000 e50,000 e75,000 e100,000 e30,000 e40,000
0.25 0.75
DnB NORBank 7.068% 19/11/2012 (Perpetual)
US$100,000 e40,000 e50,000
0.29
e60,000 e120,000 e50,000 e320,000
0.70 0.77 ______ 16.39 ______
e100,000
e100,000 e45,000 e50,000
122,335 ____________
1.09 ______
10,371 50,798 21,145 76,451
0.09 0.46 0.19 0.68
53,083 102,166
0.48 0.92
Sweden e10,000 e50,000 e20,000 e75,000 e50,000 e100,000
56
Assa Abloy EMTN 5.125% 4/12/2006 Nordea Bank Sweden 6% 13/12/2010 SCA Finans EMTN 5.375% 25/6/2007 Securitas EMTN 6.125% 12/1/2006 Skandinaviska Enskilda Banken EMTN 5.625% 6/6/2012 Svenska Handelsbanken EMTN 5.5%
Merrill Lynch International Investment Funds
46,048
0.41
54,079 ____________ 414,141 ____________
0.48 ______ 3.71 ______
Abbey National 4.625% 11/2/2011 32,867 AIB UK 1 4.781% 17/12/2014 (Perpetual) 39,842 BAA EMTN 4.5% 30/9/2014 32,325 Bank of Scotland EMTN 5.5% 27/7/2009 110,975 Barclays Bank EMTN 4.5% 4/3/2019 53,993 Barclays Bank EMTN 4.875% 31/3/2013 55,520 Cadbury Schweppes Investments EMTN 4.25% 30/6/2009 104,965 Chester Asset Receivables Dealings 11 ’A’ 6.125% 15/10/2010 116,320 GlaxoSmithKline Capital EMTN 4% 16/6/2025 49,889 Legal & General Group EMTN 4% 8/6/2025 50,805 Llyods TSB Bank 5.625% 15/7/2009 (Perpetual) 99,585 mmO2 6.375% 25/1/2007 63,589 National Westminster Bank/United Kingdom EMTN 6% 21/1/2010 113,975 Nationwide Building Society EMTN 3.375% 17/8/2015 76,578 Permanent Financing ’4A1’ 5.1% 10/6/2009 10,527 Reuters Finance EMTN 4.625% 19/11/2010 26,971 Rexam EMTN 6.625% 27/3/2007 53,425 Rolls-Royce Group EMTN 6.375% 14/6/2007 80,687 Royal Bank of Scotland 5.5% 31/12/2009 (Perpetual) 102,190 Transco EMTN 5.25% 23/5/2006 30,797 WPP Group 6% 18/6/2008 43,804 ____________
0.29 0.36 0.29 0.99 0.48 0.50
0.91 0.28 0.39 ______
1,349,629 ____________
12.08 ______
ABN Amro Bank (Chicago) 7.3% 1/12/2026 85,749 Bank of America EMTN 5.25% 27/6/2006 41,181 Bertelsmann US Finance EMTN 4.625% 3/6/2010 53,464 BNP Paribas Capital Trust II 7% 5/10/2006 (Perpetual) (Pref) 105,315 Cargill EMTN 4.5% 29/9/2014 63,978 Citigroup 3.875% 21/5/2010 126,537 Dentsply International 5.75% 13/12/2006 52,325 General Electric Capital EMTN 5.125% 20/6/2007 337,714 Goldman Sachs Group 4.75% 28/1/2014 108,619 IntesaBci Capital Trust 6.988% 12/7/2011 (Perpetual) 53,574 JPMorgan Chase & Co EMTN 4.375% 12/11/2019 53,043 McDonald’s EMTN 5.125% 23/5/2006 40,990 SLM Student Loan Trust 3.8% 17/6/2010 262,597 Zurich Finance USA EMTN 4.5% 17/9/2014____________ 106,250
0.77 0.37
0.47 0.37 2.35 0.95 ______
1,491,336 ____________ 10,924,030
13.34 ______ 97.77
248,837 ____________ 11,172,867 ____________
2.23 ______ 100.00 ______
0.94 1.04 0.45 0.46 0.89 0.57 1.02 0.69 0.09 0.24 0.48 0.72
USA 0.50 0.63 0.48 0.36 0.50
Norway e100,000
%
United Kingdom e30,000 e40,000 e30,000 e100,000 e50,000 e50,000 e100,000
0.89 0.57 0.60
2.05 0.47 0.60 0.52 0.83
Value (e)
e40,000 e250,000 e100,000 Total Portfolio
Other Net Assets Total Net Assets (e)
0.48 0.94 0.57 1.13 0.47 3.02 0.97 0.48
Corporate Bond Fund (Euro)
continued
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases e71,769 e74,611
Sales US$90,000 US$90,000
Open Futures Contracts as at 30 June 2005 Unrealised profit/(loss) e (2,883) 17 ________
Value date 1/7/2005 1/8/2005
(2,866) ________
Number of Contracts (2)
Issuer Eurex Euro Bond
Total commitment
Expiration Value date e September 2005 __________ (246,760) (246,760) __________
Note: The net unrealised loss of e2,130 attributed to this transaction is included in Other Net Assets (see Note 2c).
Note: The net unrealised loss attributed to these transactions is included in Other Net Assets (see Note 2c).
Swaps as at 30 June 2005 Nominal Value E 100,000
100,000
Description
Unrealised profit/(loss) E
Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on J Sainsbury plc 5.625% 11/7/2008) (20/6/2010) Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on W.M.Morrison plc 5.625% 11/7/208) (20/6/2010)
Nominal Value E 75,000
1,568 100,000 (983)
Description
Unrealised profit/(loss) E
Credit Default Swap (UBS) (Fund pays fixed 0.7% and receives default protection on GUS plc 6.375% 16/7/2009) (20/9/2010) (585) Credit Default Swap (Lehman) (Fund pays fixed 1.05% and receives default protection on Casino Guichard Perrachon 6% 27/2/2012) (20/6/2010) (160) __________ (160) __________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
57
Emerging Europe Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON / PREFERRED STOCKS (SHARES) Czech Republic 6,434,740 465,710 20
CEZ Komercni Banka Komercni Banka GDR
100,878,461 47,991,360 689 ____________
7.64 3.64 0.00 ______
148,870,510 ____________
11.28 ______
2,073,234 ____________
0.16 ______
5,996,005 26,980,107 228,550 50,942,953 20,974,042 72,099,990 14,722,616 ____________
0.45 2.04 0.02 3.86 1.59 5.46 1.12 ______
191,944,263 ____________
14.54 ______
22,114,015 10,656,267 ____________ 32,770,282 ____________
1.67 0.81 ______ 2.48 ______
11,828,681 6,108,197 20,855,938 10,380,958 3,558,758 8,685,248 2,532,878 9,468,264 61,858,333 7,535,524 565,362 72,433,267 3,399,766 ____________
0.89 0.46 1.58 0.79 0.27 0.66 0.19 0.72 4.68 0.57 0.04 5.49 0.26 ______
219,211,174 ____________
16.60 ______
50,654,723 38,874,479
3.84 2.95
Estonia 280,926
Eesti Telekom
Hungary 653,400 217,749 1,840 733,720 302,830 2,562,530 262,180
BorsodChem Gedeon Richter Gedeon Richter GDR Mol Magyar Olaj- es Gazipari Mol Magyar Olaj- es Gazipari GDR OTP Bank OTP Bank GDR
Israel 8,500,000 5,000,000
Bank Hapoalim Bank Leumi Le-Israel BM
Poland 332,181 172,460 149,538 314,454 307,506 292,686 809,701 1,126,140 4,953,450 309,370 48,000 14,082,368 661,090
Bank Pekao Bank Pekao GDR Bank Przemyslowo-Handlowy BRE Bank Budimex Grupa Kety Impel KGHM Polska Miedz Polski Koncern Naftowy Orlen Prokom Software Prokom Software GDR Telekomunikacja Polska Telekomunikacja Polska GDR
Holding
Description
265,293 285,560 1,670,964 1,580,020 220,760 25,265 36,342 862,800 8,200 1,173,540 111,000 21,210 254,510 1,727,910 1,828,480 55,000
Kalina Lebedyansky LUKOIL ADR Mobile Telesystems ADR Mobile Telesystems GDR NovaTek OAO OAO Gazprom ADR Rostelecom ADR Sberbank Surgutneftegaz ADR Surgutneftegaz ADR (Pref) Transneft (Pref) Unified Energy System GDR Uralsvyazinform ADR Vimpel-Communications ADR Vsmpo-Avisma
Value (e)
%
6,304,450 9,948,175 51,004,873 44,035,063 5,996,923 33,530,192 1,092,732 8,587,923 4,489,051 36,551,449 5,243,406 16,291,025 6,343,750 9,731,676 51,626,957 5,173,358 _____________
0.48 0.75 3.86 3.34 0.45 2.54 0.08 0.65 0.34 2.77 0.40 1.23 0.48 0.74 3.91 0.39 ______
385,480,205 _____________
29.20 ______
31,122,754 13,583,396 23,181,595 23,778,654 10,393,842 28,174,953 18,839,930 8,315,883 13,959,916 7,728,745 7,038,261 13,641,838 19,065,974 _____________
2.36 1.03 1.76 1.80 0.79 2.13 1.43 0.63 1.06 0.59 0.53 1.03 1.44 ______
218,825,741 _____________
16.58 ______
12,731,224 _____________ 1,211,906,633
0.96 ______ 91.80
108,255,571 _____________ 1,320,162,204 _____________
8.20 ______ 100.00 ______
Turkey 6,528,810 459,496 4,710,022 6,983,471 4,996,704 3,075,022 5,157,913 6,190,067 3,854,550 5,499,584 2,915,060 3,832,232 3,948,309
Akbank TAS Alarko Holding Arcelik Denizbank Dogan Yayin Holding Enka Insaat ve Sanayi Finansbank Is Gayrimenkul Yatirim Ortakligi Petkim Petrokimya Holding Tofas Turk Otomobil Fabrik Turk Sise ve Cam Fabrikalari Turkiye Garanti Bankasi Turkiye Is Bankasi ‘C’
United Kingdom 39,352,650
Black Sea Property Fund
Total Portfolio Other Net Assets Total Net Assets (E)
Russian Federation 3,689,990 770,840
AFK Sistema GDR JSC MMC Norilsk Nickel ADR
Contract for Difference as at 30 June 2005 Nominal Value e 4,619,000 710,000
Description Contract for Difference (Deutsche Securities) Gazprom 31/12/49 Contract for Difference (Deutsche Securities) Gazprom 31/12/49
Unrealised profit e
Nominal Value e 2,814,090
516,550 4,957,000 95,860
Description Contract for Difference (Deutsche Securities) Gazprom 31/12/49 Contract for Difference (Deutsche Securities) Gazprom 31/12/49
Total unrealised profit Note: The net unrealised profit attributed to these transactions is included above in Other Net Assets (see Note 2c).
58
Merrill Lynch International Investment Funds
Unrealised profit e 329,205 185,685 __________ 1,127,300 __________
Emerging Europe Fund
continued
Sector Breakdown as at 30 June 2005
Finance Energy Telecommunication services Utilities Materials Consumer discretionary Healthcare Consumer staples Industrials Information technology Other net assets
% of net assets 29.3 19.3 18.8 10.9 5.8 2.9 2.1 1.2 0.9 0.6 8.2 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
59
Emerging Markets Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON / PREFERRED STOCKS (SHARES) & WARRANTS Brazil 1 41,630 52,862 57,875 72,400 225,211 56,201 69,000,000 207,478 75,860 49,431
All America Latina Logistica (Pref) All America Latina Logistics (Units) Banco Itau Holding Financeira ADR CEMIG – Cia Energetica de Minas Gerais ADR Cia de Concessoes Rodoviarias CVRD – Cia Vale do Rio Doce ADR Gol Linhas Aereas Inteligentes ADR Lojas Americanas (Pref) Petrobras – Petroleo Brasileiro ADR Tele Norte Leste Participacoes Tele Norte Leste Participacoes ADR
5 1,236,885 4,883,920
0.00 0.57 2.26
1,799,913 1,690,153 5,715,854 1,694,460 1,353,056 9,583,408 1,716,188 815,117 ____________
0.83 0.78 2.65 0.79 0.63 4.44 0.80 0.38 ______
30,488,959 ____________
14.13 ______
41,460
Endesa – Empresa Nacional de Electricidad ADR Lan Airlines ADR
2,115,820 1,467,684 ____________
0.98 0.68 ______
3,583,504 ____________
1.66 ______
China 5,838,000 1,426,000
China Telecom ‘H’ Ping An Insurance Group Company of China ‘H’
2,102,861
0.98
2,293,074 ____________ 4,395,935 ____________
1.06 ______ 2.04 ______
CEZ
Vodafone Egypt Telecommunications
2,350,656 ____________
British American Tobacco Malaysia Commerce Asset Holdings New Straits Times Press Telekom Malaysia YTL
Alfa ‘A’ America Movil ‘L’ ADR Corporacion GEO ‘B’ Wal-Mart de Mexico ‘V’
Manila Electric ‘B’
163,400 496,000 109,480 356,630 429,500
Telekomunikacja Polska GDR
0.06 ______
China Netcom Group (Hong Kong Listing) 2,266,277 CNOOC 3,747,680 ____________ 6,013,957 ____________
1.05 1.74 ______ 2.79 ______
60
Bank Hapoalim Check Point Software Technologies United Mizrahi Bank
4.69 ______
3,224,337 5,745,098 4,159,646 1,095,408 ____________
1.49 2.66 1.93 0.51 ______
14,224,489 ____________
6.59 ______
1,737,490 ____________
0.81 ______
2,230,760 ____________
1.03 ______
1,887,840 2,715,766 2,113,776 727,967 ____________
0.87 1.26 0.98 0.34 ______
7,445,349 ____________
3.45 ______
1,809,488 ____________
0.84 ______
2,301,530 3,038,393 1,943,203 49,871 1,970,233 3,031,463 2,618,458 ____________
1.07 1.41 0.90 0.02 0.91 1.41 1.21 ______
14,953,151 ____________
6.93 ______
3,872,591 2,612,430 2,331,962 2,875,189 3,423,958 2,856,532 1,167,352 3,090,515 570,464 11,792,629 2,133,456 ____________
1.80 1.21 1.08 1.33 1.59 1.32 0.54 1.43 0.26 5.47 0.99 ______
36,727,078 ____________
17.02 ______
3,363,643 2,249,016
1.56 1.04
Russian Federation 31,050 73,798 62,910 22,228
JSC MMC Norilsk Nickel ADR LUKOIL ADR Mobile Telesystems OJSC ADR Mobile Telesystems OJSC GDR
People’s Food Holdings
63,500 1,451,677 126,975 9,925 359,770 457,120 160,700
AngloGold Ashanti FirstRand Imperial Holdings Lereko Mobility Proprietary Lewis Group MTN Group Telkom
1,666,031
0.77
3,256,182
1.51
2,768,394 2,893,556
1.28 1.34
1,496,362 2,434,471 ____________ 14,514,996 ____________
0.70 1.13 ______ 6.73 ______
2,079,481 1,891,148 1,363,810 ____________
0.96 0.88 0.63 ______
5,334,439 ____________
2.47 ______
South Korea 116,450 109,786 245,250 15,599 74,621 92,400 28,500 144,080 48,950 24,478 12,020
GS Engineering & Construction GS Holdings Industrial Bank of Korea KCC Kookmin Bank Korea Electric Power KT KT ADR Poongsan Samsung Electronics SK Telecom
Israel 662,980 95,900 333,648
10,110,155 ____________
South Africa 128,442 ____________
Citigroup (Wts 20/1/2009) (Jammu & Kashmir Bank) Deutsche Bank (Wts 18/6/2007) (Bharat Heavy) MSDW (Wts 10/10/2007) (Gujarat Ambuja Cements) Satyam Computer Services ADR UBS ELN (Wts 27/2/2006) (Jaiprakash Associates) UTI Bank
0.95 1.26 0.39 1.11 0.98 ______
Poland 359,800
India 420,053
2,039,319 2,723,295 845,689 2,391,768 2,110,084 ____________
Philippines
1.09 ______
Hong Kong 1,559,000 6,265,000
%
Mexico 566,850 96,459 1,661,013 267,967
3,505,000
Egypt 8,616
Value (US$)
Singapore
Czech Republic 124,370
185,600 2,049,050 1,043,300 908,800 1,498,633
4,529,200
Chile 83,300
Description Malaysia
Merrill Lynch International Investment Funds
Taiwan 4,487,000 5,209,000
Advanced Semiconductor Engineering Capital Securities
Emerging Markets Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Holding
Description
Value (US$)
%
2,932,590 2,102,765 171,000 1,382,000 508,232 6,835,261 2,674,405 3,569,016 2,418,000 2,297,000
Cathay Financial Holding Delta Electronics D-Link LITE-ON IT Pihsiang Machinery Manufacturing ProMOS Technologies Quanta Computer Taishin Financial Holdings Taiwan Mobile Wintek
5,918,034 3,269,036 201,749 2,565,970 991,865 2,745,771 5,117,855 2,997,219 2,493,328 3,225,889 ____________
2.74 1.51 0.09 1.19 0.46 1.27 2.37 1.39 1.16 1.50 ______
35,139,375 ____________
16.28 ______
Bangkok Bank Bank of Ayudhya Sansiri True United Broadcasting United Broadcasting – NVDR
Description
1,231,600
Old Mutual (South African Listing)
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
2,705,270 ____________
1.25 ______
208,338,685 ____________
96.55 ______
0 ____________ 0 ____________
0.00 ______ 0.00 ______
0 ____________ 0 ____________
0.00 ______ 0.00 ______
0 ____________ 208,338,685
0.00 ______ 96.55
7,446,034 ____________ 215,784,719 ____________
3.45 ______ 100.00 ______
COMMON STOCKS (SHARES) 3,104
3,186,301 3,103,062 496,783 1,900,473 701,075 365,705 ____________
1.48 1.44 0.23 0.88 0.32 0.17 ______
9,753,399 ____________
4.52 ______
Turkey Enka Insaat ve Sanayi Finansbank KOC Holding (New)
%
Unquoted Securities
KYS – Kgolo Yo Sachaba
Total Common Stocks (Shares)
BONDS Brazil BRL28,000
CVRD – Cia Vale do Rio Doce 0% 29/9/2049
Total Bonds 233,136 480,618 1
Value (US$)
United Kingdom
Botswana
Thailand 1,218,760 10,255,000 6,706,566 7,548,900 1,232,400 662,600
Holding
2,575,319 2,116,470 4 ____________
1.19 0.98 0.00 ______
4,691,793 ____________
2.17 ______
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (US$)
Sector Breakdown as at 30 June 2005
Finance Telecommunication services Information technology Capital goods Energy Utilities Consumer discretionary Materials Consumer staples Other net assets
% of net assets 25.0 18.2 17.2 13.1 8.3 5.2 3.9 3.8 1.8 3.5 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
61
Emerging Markets Bond Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Holding
Value (US$)
%
US$425,000
Petronas Capital 7.875% 22/5/2022 ____________ 540,025
0.89 ______
US$250,000
Mei Euro Finance 8.75% 22/5/2010 ____________ 259,067
BONDS Argentina US$265,000 US$1,050,000
Republic of Argentina ‘2031’ 12% 19/6/2031 78,175 Republic of Argentina FRN 8/3/2012 ____________ 937,416 1,015,591 ____________
0.13 1.54 ______ 1.67 ______
Mauritius
US$400,000 US$1,100,000 US$900,000 US$4,000,000 US$1,575,000 US$1,575,000 US$2,141,204
US$1,100,000
Banco Bradesco (Cayman Islands) 17.5% 10/12/2007 475,064 CSN Islands VIII 10% 15/1/2015 434,708 Republic of Brazil 10% 8/7/2011 1,257,850 Republic of Brazil 10.25% 17/6/2013 1,053,270 Republic of Brazil 10.5% 14/7/2014 4,739,999 Republic of Brazil 11% 17/8/2040 1,888,425 Republic of Brazil 14.5% 15/10/2009 2,050,178 Republic of Brazil FRN 15/4/2012 2,061,016 ____________
0.78 0.71 2.07 1.73 7.78 3.10 3.37 3.38 ______
13,960,510 ____________
22.92 ______
Republic of Bulgaria 8.25% 15/1/2015____________ 505,360
0.83 ______
US$475,000 US$2,750,000 US$900,000 US$700,000 US$750,000
Bulgaria US$400,000
US$1,000,000
Canada US$500,000
Sino-Forest 9.125% 17/8/2011
547,066 ____________
0.90 ______
US$500,000
US$250,000
AES China Generating 8.25% 26/6/2010 Sino Forest 9.125% 17/8/2011
254,946 547,066 ____________
0.42 0.90 ______
802,012 ____________
1.32 ______
AES Gener 7.5% 25/3/2014
762,999 ____________
1.25 ______
US$350,000
Republic of Colombia Republic of Colombia Republic of Colombia 15/1/2013 Republic of Colombia 25/2/2020
10% 23/1/2012 10.5% 7/9/2010 10.75%
291,750 503,625
0.48 0.83
608,750
1.00
456,750 ____________ 1,860,875 ____________
0.75 ______ 3.06 ______
Dominican Republic 9.5% 27/9/2011____________ 534,994
0.88 ______
US$350,000
Aries Vermoegensverwaltungs 9.6% 25/10/2014 1,946,250 ____________
3.20 ______
Bangkok Bank (Hong Kong) 9.025% 15/3/2029 293,151 ____________
US$500,000 US$1,250,000 US$200,000
0.48 ______
US$575,000
Luxembourg US$750,000 US$750,000
Gazprom International 7.201% 1/2/2020 811,260 Gazprom International ‘144A’ 7.201% 1/2/2020 799,688 ____________ 1,610,948 ____________
62
4.96 1.81 1.34 1.52 1.88 ______ 17.80 ______
Merrill Lynch International Investment Funds
Excelcomindo Finance 8% 27/1/2009
259,388 ____________
0.43 ______
Central Bank of Nigeria ‘WW’ 5.25/6.25% 15/11/2020 (step-up coupon)
492,500 ____________
0.81 ______
Republic of Panama 4.688% 17/7/2014
482,936 ____________
0.79 ______
Republic of Peru 9.125% 21/2/2012
767,000 ____________
1.26 ______
Philippines US$420,000
US$175,000
Hong Kong US$225,000
US$650,000
11.75%
Germany US$1,500,000
0.78
Peru
Dominican Republic US$500,000
2.13
Panama US$489,058
Colombia US$250,000 US$425,000 US$500,000
3.38
Nigeria US$500,000
Chile US$750,000
Mexican Fixed Rate Bonds ‘MI10’ 9.5% 18/12/2014 2,058,749 Pemex Project Funding Master Trust 9.125% 13/10/2010 1,293,050 United Mexican States 4.625% 8/10/2008 476,781 United Mexican States 6.625% 3/3/2015 3,018,124 United Mexican States 8.125% 30/12/2019 1,104,540 United Mexican States 8.375% 14/1/2011 814,030 United Mexican States MTN 8.3% 15/8/2031 926,250 United Mexican States MTNA 7.5% 8/4/2033 1,145,000 ____________ 10,836,524 ____________
Netherlands
China US$250,000
0.42 ______
Mexico MXN10,921,100
Brazil BRL1,100,000
Description Malaysia
Philippine Long Distance Telephone EMTN 10.5% 15/4/2009 478,379 Republic of Philippines 8.375% 15/2/2011 364,506 Republic of Philippines 8.875% 15/4/2008 190,912 Republic of Philippines 8.875% 17/3/2015 521,850 Republic of Philippines 9.5% 2/2/2030 1,288,250 Republic of Philippines 9.875% 15/1/2019 218,975 Republic of Philippines 10.625% 16/3/2025 652,642 ____________
1.33 1.32 ______ 2.65 ______
0.79 0.60 0.31 0.86 2.11 0.36
3,715,514 ____________
1.07 ______ 6.10 ______
1,145,404 ____________
1.88 ______
Poland PLz3,605,000
Government of Poland ‘1110’ 6% 24/11/2010
Emerging Markets Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Russian Federation US$4,600,000 US$500,000 US$300,000
Holding US$505,896
Russian Federation 2.5/5% 31/3/2030 (step-up coupon) 5,141,212 Russian Federation 11% 24/7/2018 747,950 Russian Federation 12.75% 24/6/2028 543,150 ____________ 6,432,312 ____________
8.44 1.23
US$74,043 US$190,578
0.89 ______ 10.56 ______
US$244,837
Description
Republic of South Africa 7.375% 25/4/2012
488,984 ____________
0.80 ______
Republic Republic Republic Republic Republic Republic
of of of of of of
Turkey Turkey Turkey Turkey Turkey Turkey
7.375% 5/2/2025 990,000 11% 14/1/2013 1,204,125 11.5% 23/1/2012 512,840 12% 15/12/2008 662,063 15% 10/2/2010 800,119 20% 17/10/2007 ____________ 290,883
1.62 1.98 0.84 1.09 1.31 0.48 ______
4,460,030 ____________
7.32 ______
Ukraine US$700,000 US$2,535,000
Republic of Ukraine 7.65% 11/6/2013 773,570 Republic of Ukraine 11.2% 4/1/2006 ____________ 518,214 1,291,784 ____________
1.27 0.85 ______ 2.12 ______
Uruguay URP8,000,000 US$200,000 US$517,648
Republic of Orient Uruguay 17.75% 4/2/2006 340,263 Republic of Uruguay 9.25% 17/5/2017 215,000 Republic of Uruguay 7.875% 15/1/2033 471,060 ____________ 1,026,323 ____________
US$326,348
Indah Kiat Finance Mauritius ‘A’ 5.49% 28/4/2015 Indah Kiat Finance Mauritius ‘C’ 0% 28/4/2024
0.10 0.19
282,375
0.46
1,342,963
2.21
1,263,000 ____________ 2,888,338 ____________
2.07 ______ 4.74 ______
59,203,109 ____________
97.22 ______
Republic of Venezuela 0% 15/4/2020____________ 0 Total Unquoted Securities 0 ____________
0.00 ______ 0.00 ______
Venezuela US$300,000 US$1,291,000 US$1,200,000
Republic of Venezuela 5.375% 7/8/2010 Republic of Venezuela 8.5% 10/8/2014 Republic of Venezuela 9.25% 15/9/2027
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Unquoted Securities BONDS Venezuela
0.56 US$7,000
0.35 0.78 ______ 1.69 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
USA US$192,727
0.59
0.08 ______ 1.35 ______
Turkey US$1,000,000 US$950,000 US$400,000 US$550,000 TRL1,000,000 TRL350,000
%
824,740 ____________
South Africa US$425,000
Value (US$)
Indah Kiat Finance Mauritius ‘B’ 5.49% 28/4/2018 359,186 Tjiwi Kimia International ‘A’ 4.19% 29/4/2015 61,456 Tjiwi Kimia International ‘B’ 4.19% 30/4/2018 116,253 Tjiwi Kimia International ‘C’ 0% 29/4/2027 48,967 ____________
163,818
0.27
75,060
0.12
59,203,109
97.22
1,690,226 ____________ 60,893,335 ____________
2.78 ______ 100.00 ______
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
63
Emerging Markets Bond Fund
continued
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases BRL2,694,000 US$495,714 RUB13,880,000 US$300,000 ZAR6,340,500 THB57,510,000 TWD45,615,000 SGD3,314,500 US$937,561 THB38,440,000 KRW1,017,250,000 MYR1,897,000 TWD30,950,000 US$994,890 MXN11,487,500 BRL3,969,750 US$923,389 BRL2,730,000 MXN11,620,000
Sales US$1,047,841 RUB13,880,000 US$500,000 ZAR2,024,250 US$1,000,000 US$1,500,000 US$1,500,000 US$1,991,289 THB38,440,000 US$1,000,000 US$1,009,477 US$503,183 US$1,000,000 MXN11,487,500 US$1,000,218 US$1,540,753 BRL2,730,000 US$931,423 US$1,000,000
Value date 5/7/2005 13/7/2005 13/7/2005 18/7/2005 18/7/2005 26/7/2005 26/7/2005 8/8/2005 10/8/2005 10/8/2005 12/8/2005 12/8/2005 16/8/2005 22/8/2005 22/8/2005 26/8/2005 21/9/2005 21/9/2005 23/5/2006
Net unrealised loss
Unrealised profit/(loss) US$ 95,622 11,766 (16,052) (3,355) (49,809) (107,586) (59,194) (22,175) 6,703 (69,142) (17,492) (3,705) (22,570) (65,943) 60,616 108,465 (198,734) 190,700 28,946 ________ (132,939) ________
Note: The net unrealised loss attributed to these transactions is included in Other Net Assets (see Note 2c).
Swaps as at 30 June 2005 Nominal Value US$ 1,000,000
1,000,000
1,000,000
Description Credit Default Swaps (Morgan Stanley) (Fund pays default protection on Colombia Government International Bond 10% 28/1/2033 and receives 1.8%) (20/4/2007) Credit Default Swaps (Morgan Stanley) (Fund pays default protection on Russian Government Bond 8.25% 31/3/2010 and receives 1.02%) (20/12/2006) Credit Default Swaps (Morgan Stanley) (Fund pays default protection on Republic of Turkey 11.875% 15/1/2030 and receives 1.17%) (20/3/2007)
Unrealised profit/(loss) US$
Nominal Value US$ 1,000,000
13,783 1,000,000 6,346
5,400
Note: The net unrealised profit attributed to these transactions is included in Other Net Assets (see Note 2c).
64
Merrill Lynch International Investment Funds
Description Credit Default Swaps (JP Morgan Chase) (Fund pays default default protection on Brasilian Government International Bond 12.25% 3/6/2030 and receives 1.65%) (20/3/2007) Credit Default Swaps (JP Morgan Chase) (Fund pays default default protection on Russian Government International Bond 5% 31/3/2030 and receives 0.68%) (20/6/2007)
Unrealised profit/(loss) US$
(2,711)
941 __________ 23,759 __________
Euro Bond Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS
e500,000
e750,000
Republic of Austria ‘2’ 4.65% 15/1/2018 13,373,411 Telekom Finanzmanagement 3.375% 27/1/2010 510,775 ____________ 13,884,186 ____________
7.03 0.27 ______ 7.30 ______
Fortis Bank 4.625% 27/10/2014 (Perpetual)
787,553 ____________
0.41 ______
CAM International EMTN 5.75% 3/4/2012
3,025,938 ____________
1.59 ______
Dong 3.5% 29/6/2012 Dong 5.5% 29/6/2015
Sampo 4.625% 21/4/2014
301,455 1,011,500 ____________
0.16 0.53 ______
1,312,955 ____________
0.69 ______
527,500 ____________
0.28 ______
e1,255,000 e350,000 e900,000 e400,000 e11,327,000 e509,000 e500,000 e750,000 e400,000
Air Liquide EMTN 4.75% 25/6/2014 1,106,750 Banque Psa Finance EMTN 4.875% 30/1/2007 623,850 BNP Paribas EMTN 5.25% 17/12/2012 1,426,082 Cif Euromortgage 3.25% 1/12/2011 357,970 Gecina EMTN 3.625% 17/10/2007 918,585 GIE Suez Alliance 5.5% 20/2/2009 439,192 Government of France 6.5% 25/4/2011 13,658,881 PPR – Pinault-Printemps-Redoute EMTN 5.25% 29/3/2011 553,181 Technip 4.625% 26/5/2011 536,035 Unibail EMTN 4% 29/10/2011 776,438 Veolia Environnement EMTN 4.875% 28/5/2013 441,340 ____________
Depfa ACS Bank 4.375% 15/1/2015 ____________ 491,544
Telecom Italia EMTN 5.25% 17/3/2055
Resona Bank 3.75% 15/4/2015 Sumitomo Mitsui Banking 4.375% 27/10/2014
ASIF III Jersey EMTN 5.125% 10/5/2007 UBS Jersey EMTN 4.5% 16/9/2019
0.58 0.33 0.75 0.19 0.48 0.23 7.19 0.29 0.28 0.41
0.26 ______
865,260 ____________
0.46 ______
1,210,601
0.64
525,088 ____________ 1,735,689 ____________
0.27 ______ 0.91 ______
698,187 542,550 ____________ 1,240,737 ____________
0.37 0.28 ______ 0.65 ______
Luxembourg e370,000 e370,000 e200,000 e750,000 e300,000
0.23 ______ 10.96 ______
Glencore Finance Europe/Luxembourg EMTN 5.375% 30/9/2011 385,607 Hannover Finance Luxembourg 5.75% 26/2/2024 413,684 Holcim Finance Luxembourg 4.375% 9/12/2014 209,160 Telecom Italia Finance EMTN 6.375% 20/4/2006 774,090 Tyco International Group 6.125% 4/4/2007 318,518 ____________ 2,101,059 ____________
0.20 0.22 0.11 0.41 0.17 ______ 1.11 ______
Netherlands
Germany
e7,000,000 e379,000 e1,710,000 e6,838,000 e360,000 e458,000 e12,371,000 e1,010,000 e9,207,000 e1,400,000 e500,000 e500,000
e665,000 e500,000
20,838,304 ____________ e500,000 e500,000 e850,000
1.46 ______
Jersey
France e1,000,000 e600,000
International Bank for Reconstruction & Development EMTN 6.5% 30/7/2007 2,784,007 ____________
Japan e1,200,000 e500,000
Finland e500,000
0.47 ______
Italy e900,000
Denmark e300,000 e1,000,000
Credit Suisse Group Capital Guernsey V 6.905% 7/11/2011 (Perpetual) 894,600 ____________
Ireland e450,000
Cayman Islands e2,860,000
%
International ITL4,965,000,000
Belgium e750,000
Value (e)
Guernsey Austria
e11,805,000
Description
Allianz EMTN 5.5% 15/1/2014 (Perpetual) 551,780 Bayer EMTN 6% 10/4/2012 582,093 Bayerische Hypo-und Vereinsbank ‘1162’ 3.5% 3/2/2015 867,655 Germany 2.5% 16/9/2005 7,006,299 Germany ‘03’ 3.75% 4/7/2013 400,356 Germany ‘03’ 4.5% 4/1/2013 1,893,612 Germany ‘04’ 3.75% 4/1/2015 7,199,733 Germany ‘04’ 4.25% 7/4/2014 393,419 Germany ‘05’ 3.25% 4/7/2015 462,065 Germany ‘05’ 4% 4/1/2037 13,120,776 Germany ‘140’ 4.5% 17/8/2007 1,061,146 Germany ‘144’ 3.25% 17/4/2009 9,512,158 Germany ‘145’ 3.5% 9/10/2009 1,460,898 Metro EMTN 5.125% 13/2/2008 532,400 ThyssenKrupp EMTN 4.375% 18/3/2015 501,775 ____________ 45,546,165 ____________
0.29 0.31 0.46 3.68 0.21 1.00 3.79 0.21 0.24 6.90 0.56 5.00 0.77 0.28 0.26 ______ 23.96 ______
e300,000 e1,000,000 e1,110,000 e30,843,000 e6,997,000 e9,085,000 e950,000 e500,000 e440,000 e375,000 e840,000
British American Tobacco Holdings EMTN 4.375% 15/6/2011 315,060 Deutsche Telekom International Finance 7.5% 29/5/2007 1,095,405 Deutsche Telekom International Finance EMTN 4% 19/1/2015 1,143,633 Dutch Government 3% 15/7/2007 31,428,091 Dutch Government 3.75% 15/7/2014 7,360,465 Dutch Government 5% 15/7/2011 10,237,887 Eneco Holding EMTN 4.125% 10/6/2010 1,000,778 Generali Finance 4.75% 12/5/2014 559,625 International Endesa EMTN 5.375% 21/2/2013 500,918 Munich Re Finance 6.75% 21/6/2023 447,293 Volkswagen International Finance EMTN 4.875% 22/5/2013 909,132 ____________ 54,998,287 ____________
0.17 0.58 0.60 16.53 3.87 5.39 0.53 0.29 0.26 0.24 0.48 ______ 28.94 ______
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
65
Euro Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
0.37
e750,000 e750,000
0.44
e367,000
0.24 ______ 1.05 ______
£2,940,000 e600,000
Sweden e700,000 e800,000 e390,000
Securitas EMTN 6.125% 12/1/2006 713,542 Svenska Handelsbanken EMTN 5.125% 28/12/2011 831,004 Vattenfall Treasury EMTN 5.375% 29/4/2024 448,968 ____________ 1,993,514 ____________
Description
Value (e)
%
801,375
0.42
806,869
0.42
375,037 4,367,527 657,060 ____________
0.20 2.30 0.34 ______
16,033,449 ____________
8.43 ______
Cargill EMTN 4.5% 29/9/2014 799,725 Citigroup 4.75% 10/2/2019 1,097,166 Dentsply International 5.75% 13/12/2006 418,600 McDonald’s EMTN 5.125% 23/5/2006 1,024,742 SES Global Americas Holdings 4.25% 17/12/2007 1,403,648 US Treasury Bill 3.37% 10/11/2005 6,150,103 Zurich Finance USA EMTN 4.5% 17/9/2014 318,750 ____________
0.42 0.58
Rexam EMTN 6.625% 27/3/2007 Rolls-Royce Group EMTN 6.375% 14/6/2007 Royal Bank of Scotland 5.5% 31/12/2009 (Perpetual) UK Treasury 4% 7/3/2009 WPP Group 6% 18/6/2008
United Kingdom e500,000 e500,000 e575,000 e500,000 e2,250,000 e650,000 e650,000 e350,000 e750,000 e750,000 e550,000 e500,000
Abbey National 4.625% 11/2/2011 547,775 AIB UK 1 4.781% 17/12/2014 (Perpetual) 498,023 Anglian Water Services Financing EMTN 4.625% 7/10/2013 625,283 Barclays Bank EMTN 4.5% 4/3/2019 539,925 British Telecommunications 6.375% 15/2/2006 2,306,363 Cadbury Schweppes Investments EMTN 4.25% 30/6/2009 682,273 Chester Asset Receivables Dealings No 11 ‘A’ 6.125% 15/10/2010 756,077 Legal & General Group EMTN 4% 8/6/2025 355,635 Lloyds TSB Bank 5.625% 15/7/2009 (Perpetual) 829,875 mmO2 EMTN 6.375% 25/1/2007 794,858 National Grid EMTN 4.125% 18/9/2008 578,974 Nationwide Building Society EMTN 3.375% 17/8/2015 510,520
0.29 0.26 0.33 0.28 1.21 0.36
Sales CHF39,525,000 e33,068,673 £24,565,000 e44,744,847 SEK155,030,000 e17,962,173 US$49,394,413 e40,240,866
Value date 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005
Net unrealised loss
0.19 0.44 0.42 0.30
Merrill Lynch International Investment Funds
US$7,499,000 e300,000
11,212,734 ____________ 180,273,481
Total Portfolio Other Net Assets
9,829,280 ____________ 190,102,761 ____________
Total Net Assets (e)
0.22 0.54 0.74 3.23 0.17 ______ 5.90 ______ 94.83 5.17 ______ 100.00 ______
0.27
Open Futures Contracts as at 30 June 2005 Unrealised profit/(loss) e 114,653 (160,439) (430,382) 413,502 474,589 (438,121) (1,152,758) 705,084 ________ (473,872) ________
Note: The net unrealised loss attributed to these transactions is included above in Other Net Assets (see Note 2c).
66
e1,000,000 e1,350,000
0.40
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases e25,641,559 CHF50,954,000 e36,086,665 £30,378,000 e16,924,908 SEK165,149,000 e39,806,736 US$49,378,078
USA e750,000 e1,000,000 e400,000
Number of Contracts 56 149 (55) Total commitment
Issuer Eurex Schatz Euro DTB BOBL Euribor 3MTN (LIFFE)
Expiration Value date e` September 2005 5,987,520 September 2005 172,229,100 September 2005 ___________ (13,467,437) 164,749,183 ___________
Note: The net unrealised profit of e55,520 attributed to these transactions is included above in Other Net Assets (see Note 2c).
Euro Bond Fund
continued
Swaps as at 30 June 2005 Nominal Value e 1,000,000
1,000,000
750,000
Description
Unrealised profit/(loss) e
Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on J Sainsbury plc 5.625% 11/7/2008) (20/6/2010) Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on W.M.Morrison plc 5.625% 11/7/2008) (20/6/2010) Credit Default Swap (UBS) (Fund pays fixed 0.7% and receives default protection on GUS plc 6.375% 16/7/2009) (20/9/2010)
Nominal Value e 700,000
15,684
Description
Unrealised profit/(loss) e
Credit Default Swap (Lehman) (Fund pays fixed 1.05% and receives default protection on Casino Guichard Perrachon 6% 27/2/2012) (20/6/2010) (1,120) __________ (1,121) __________
(9,831)
(5,854)
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
67
Euro Reserve Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS
e10,000,000 e10,000,000 e10,000,000
e9,554,000
Australia & New Zealand Banking Group EMTN 5.125% 7/3/2006 6,117,210 Commonwealth Bank of Australia EMTN FRN 5/5/2006 9,996,350 Suncorp-Metway EMTN FRN 20/10/2008 10,009,150 Westpac Banking EMTN FRN 2/5/2006 10,012,500 ____________ 36,135,210 ____________
1.41
2.30 2.31 ______ 8.32 ______
BMW Coordination Center EMTN 0% 29/11/2005 148,737 ____________
Novartis Securities Investment 4% 6/11/2006
e1,697,000
e5,000,000
e5,000,000 e870,000
3,995,403 ____________
0.92 ______
e5,000,000
BCP Finance Bank EMTN FRN 6/7/2007 5,006,500 Caixa Geral de Depositos Finance (Cayman Islands) EMTN FRN 24/4/2007 10,021,500 ____________
1.15
e3,232,000 e2,500,000
15,028,000 ____________
2.31 ______ 3.46 ______
6,495,775 ____________
1.50 ______
Aventis EMTN 5% 18/4/2006 1,536,140 Caisse Centrale du Credit Immobilier de France EMTN 3% 7/7/2005 1,000,040 Caisse Nationale des Caisses d’Epargne et de Prevoyance EMTN FRN 4/2/2009 5,002,250 Credit Agricole EMTN FRN 11/7/2007 5,007,750 Total EMTN 5.75% 29/9/2005 877,134 ____________
0.36 0.23
e6,000,000 e10,000,000
1.15 1.15 0.20 ______
e5,000,000
13,423,314 ____________
3.09 ______
OKO Bank EMTN FRN 18/3/2008
e5,650,000
e13,069,000
68
BASF 5.75% 25/7/2005 5,214,294 Deutsche Bank FRN 18/10/2010 50,280 Deutsche Postbank 6% 15/1/2007 8,106,334 DSL Bank EMTN 3.875% 20/4/2006 1,013,845 Federal State of North Rhine Westphalia ‘310’ 6.25% 13/12/2005 5,091,010 Landesbank Baden-Wuerttemberg Capital Markets EMTN 5.25% 17/3/2006 5,769,441 Robert Bosch EMTN 5.25% 19/7/2006____________ 13,479,627
1.33 3.11 ______
38,724,831 ____________
8.92 ______
0.39 2.17 ______ 3.72 ______
BMW Finance EMTN 5.25% 1/9/2006 3,761,880 ING Groep EMTN 5% 3/5/2006 4,444,566 NIB Capital Bank EMTN FRN 12/2/2008 10,015,000 Popular Finance Europe EMTN FRN 10/11/2008 4,997,690 Rabobank Nederland EMTN 4.5% 9/9/2005 3,244,847 Shell Finance Netherland EMTN 3.5% 15/1/2007 2,548,538 ____________
0.86 1.02 2.31 1.15 0.75
29,012,521 ____________
0.59 ______ 6.68 ______
5,116,368 ____________
1.18 ______
BPE Financiaciones FRN 30/7/2007 5,996,400 Caja de Ahorros y Monte de Piedad de Madrid FRN 21/2/2008 9,993,432 Santander International Debt EMTN FRN 25/1/2010 4,987,750 ____________ 20,977,582 ____________
1.38
Westlb Finance Curaco EMTN FRN 29/10/2008
1.20 0.01 1.87 0.23 1.17
Banca Intesa EMTN FRN 23/4/2008 5,020,000 Republic of Italy EMTN 4% 26/10/2005 1,608,928 SanPaolo EMTN FRN 27/9/2010 10,013,500 ____________
1.16 0.37 2.31 ______
16,642,428 ____________
3.84 ______
2.30 1.15 ______ 4.83 ______
Sweden Swedish Export Credit EMTN 3.45% 28/11/2005 3,015,360 ____________
0.70 ______
United Kingdom e4,000,000 e3,500,000 e5,000,000 e13,825,000 e5,000,000 e1,750,000
Merrill Lynch International Investment Funds
1.16
Netherlands Antilles e10,000,000
e3,000,000
Italy e5,000,000 e1,600,000 e10,000,000
2.42 ______ 4.65 ______
Spain
Germany e5,204,000 e50,000 DM15,000,000 e1,000,000 e5,000,000
10,492,500 ____________ 20,175,479 ____________
Netherlands e3,635,000 e4,345,000 e10,000,000
France e1,504,000 e1,000,000
2.23
ASIF III (Jersey) EMTN 5.75% 26/9/2005 5,036,500 John Hancock Global Funding EMTN 3.875% 8/2/2006 1,714,021 UBS (Jersey Branch) 3.5% 26/1/2006 ____________ 9,421,341
Finland e6,500,000
9,682,979
16,171,862 ____________ 0.03 ______
Cayman Islands e5,000,000 e10,000,000
%
Jersey e5,000,000
e9,350,000
Bermuda e3,901,000
e10,000,000
Nippon Telegraph & Telephone 3.75% 15/5/2006 Tokyo Electric Power 5.125% 27/3/2007
2.30
Belgium e150,000
Value (e)
Japan Australia
e6,000,000
Description
e4,000,000
Abbey National Treasury Services (London) FRN 27/5/2009 4,005,000 Bank of England 2.75% 27/1/2006 3,514,175 GlaxoSmithKline Capital EMTN 3.375% 15/4/2008 5,140,750 HBOS Treasury Services EMTN FRN 23/2/2006 13,845,738 Nationwide Building Society EMTN FRN 27/9/2006 5,005,750 Nord/LB Norddeutsche Securities EMTN 4.875% 3/5/2006 1,788,798 Royal Bank Scotland MTN1 FRN 7/10/2013 4,026,753 ____________ 37,326,964 ____________
0.92 0.81 1.19 3.19 1.15 0.41 0.93 ______ 8.60 ______
Euro Reserve Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
USA e2,750,000 e10,000,000 e7,000,000 e2,286,000 e3,756,000 e7,000,000 e3,240,000 e1,046,000 e3,237,000
Value (e)
%
9,901,417 ____________
2.28 ______
ABN Amro Bouwfonds Nederlandse 0% 16/12/2005 9,901,417 ____________
2.28 ______
Luxembourg e10,000,000
Bank of America EMTN FRN 20/11/2008 2,753,644 Bank One/Columbus OH EMTN FRN 27/5/2008 10,036,900 General Electric Capital EMTN 3% 27/2/2006 7,039,270 General Electric Capital EMTN 3.5% 10/2/2006 2,304,288 General Electric Capital EMTN 4% 14/10/2005 3,774,442 HSBC Finance 5.25% 23/11/2005 7,080,185 Kelda Group 5.25% 26/7/2006 3,340,440 Morgan Stanley Group EMTN 5.25% 16/3/2006 1,067,840 Procter & Gamble 5.75% 26/9/2005 ____________ 3,262,346
0.25 0.75 ______
40,659,355 ____________ 303,049,189 ____________
9.36 ______ 69.80 ______
Total Bonds
Description Fortis 0% 16/12/2005
0.63
Netherlands 2.31
e10,000,000
1.62
New Zealand 0.53
e10,000,000
0.87 1.63 0.77
e10,000,000
ASB Bank 0% 16/12/2005
2.28 ______
9,991,228 ____________
2.30 ______
9,952,615 ____________
2.30 ______
9,992,419 ____________ 88,819,615 ____________
2.30 ______ 20.46 ______
391,868,804
90.26
42,296,410 ____________ 434,165,214 ____________
9.74 ______ 100.00 ______
Sweden Stadshypotek 0% 15/7/2005
United Kingdom e10,000,000
Network Rail MTN Finance 0% 19/9/2005
USA e10,000,000
Centauri 0% 13/7/2005
Total Commercial Paper
COMMERCIAL PAPER
9,901,417 ____________
Total Portfolio
Cayman Islands e9,200,000
K2 0% 15/7/2005
9,191,930 ____________
2.12 ______
Total Net Assets (e)
Ireland e10,000,000 e10,000,000
Other Net Assets
Ormond Quay Funding 0% 11/7/2005 9,993,586 Ulster Bank Finance 0% 11/7/2005 ____________ 9,993,586 19,987,172 ____________
2.30 2.30 ______ 4.60 ______
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
69
Euro-Markets Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) OMV
868,963 6,315,943 ____________
1.70 ______
Belgium 107,499
KBC Groep
6,971,310 ____________
1.87 ______
9,136,738 3,458,385 ____________ 12,595,123 ____________
2.46 0.93 ______ 3.39 ______
Finland 694,809 247,558
Fortum Nokia
Value (e)
%
8,255,148 ____________
2.22 ______
3,450,291 4,129,692 3,670,257 10,452,351 1,313,202 11,535,295 7,064,992 5,371,942 ____________
0.93 1.11 0.99 2.81 0.35 3.10 1.90 1.45 ______
46,988,022 ____________
12.64 ______
5,733,680 6,850,738 9,224,057 15,058,375 9,603,665 ____________
1.54 1.84 2.48 4.05 2.58 ______
46,470,515 ____________
12.49 ______
6,355,455 5,228,858 ____________ 11,584,313 ____________
1.71 1.41 ______ 3.12 ______
Telefonaktiebolaget LM Ericsson ‘B’ ____________ 8,903,912
2.39 ______
Ireland
Austria 17,457
Description Grafton Group
Italy 910,968 1,162,475 395,715 2,241,791 181,884 542,327 2,712,089 2,484,135
Banca Intesa Banca Intesa – RNC Bulgari Capitalia Enel ENI Telecom Italia Telecom Italia – RNC
France 1,190,162 565,567 169,726 725,852 393,362 436,371 166,733 48,454 130,723 107,669 435,174
Altran Technologies AXA Carrefour Credit Agricole Euronext France Telecom Peugeot Sanofi-Aventis Societe Generale* Total Vivendi Universal
8,723,887 11,820,351 6,846,747 15,235,634 10,986,600 10,603,816 8,143,240 3,299,717 11,019,950 21,081,590 11,462,483 ____________
2.35 3.18 1.84 4.10 2.96 2.85 2.19 0.89 2.96 5.67 3.08 ______
119,224,015 ____________
32.07 ______
5,240,954 5,723,037 6,427,663 7,975,736 3,040,105 6,833,874 5,885,508 14,194,236 5,950,811 ____________
1.41 1.54 1.73 2.14 0.82 1.84 1.58 3.82 1.60 ______
61,271,924 ____________
16.48 ______
639,129 5,023,652 ____________
0.17 1.35 ______
5,662,781 ____________
1.52 ______
Netherlands 700,083 121,252 401,395 2,214,467 177,353
Spain 182,366 406,915
Germany 37,610 262,284 170,089 123,387 298,342 354,638 146,588 191,814 145,248
Adidas-Salomon Bayerische Hypo-und Vereinsbank BMW Deutsche Boerse* Deutsche Lufthansa* Deutsche Post* Deutsche Postbank AG E.ON Metro
Greece 26,002 178,905
(*)
70
Emporiki Bank of Greece National Bank of Greece
Buhrmann DSM Fortis Koninklijke Ahold Royal Dutch Petroleum
Altadis* Banco Bilbao Vizcaya Argentaria
Sweden 3,317,112
Switzerland 8,196 29,896 57,660 193,810
Serono ‘B’ Straumann Holding Swiss Life Holding UBS
Total Portfolio Other Net Assets
Securities lent, see note 12 for further details.
Merrill Lynch International Investment Funds
Total Net Assets (e)
4,339,028 5,249,992 6,347,104 12,575,315 ____________
1.17 1.41 1.71 3.38 ______
28,511,439 ____________ 362,754,445
7.67 ______ 97.56
9,084,753 ____________ 371,839,198 ____________
2.44 ______ 100.00 ______
Euro-Markets Fund
continued
Sector Breakdown as at 30 June 2005
Finance Energy Consumer discretionary Consumer staples Telecommunication services Information technology Utilities Capital goods Healthcare Materials Other net assets
% of net assets 35.7 15.5 13.2 7.5 6.2 5.8 4.2 4.2 3.5 1.8 2.4 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
71
European Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) Fortis KBC Groep*
5,560,999 4,344,496 ____________
1.96 1.53 ______
9,905,495 ____________
3.49 ______
Fortum
76,846 282,663 380,000
DSM ING Groep Koninklijke Ahold
5,166,977 ____________
1.82 ______
5,786,290 4,907,522 6,767,623 4,053,661 3,338,889 6,314,492 11,487,390 4,776,642 5,937,774 ____________
2.04 1.73 2.38 1.43 1.18 2.22 4.04 1.68 2.09 ______
53,370,283 ____________
18.79 ______
531,542 339,609
DNB NOR Statoil
France 276,856 121,654 278,503 63,092 25,333 74,905 58,669 69,529 225,428
AXA Carrefour France Telecom LVMH Moet-Hennessy Louis Vuitton Pernod-Ricard Societe Generale* Total Vinci* Vivendi Universal
Germany 273,542 114,582 79,679 247,676 110,677 104,081 109,690
Bayerische Hypo-und Vereinsbank BMW Continental Deutsche Post Deutsche Postbank RWE Siemens
Alpha Bank
Mol Magyar Olaj- es Gazipari
Banco Bilbao Vizcaya Argentaria
Swiss Life Holding Syngenta UBS
Anglo Irish Bank CRH (Eire Listing)
Anglo American BAE Systems BG Group British Energy Group BT Group Cable & Wireless Cairn Energy Enterprise Inns GlaxoSmithKline HBOS Lloyds TSB Group Prudential Reckitt Benckiser Royal Bank of Scotland Group Tullow Oil Xstrata
36,519,185 ____________
12.86 ______
2,305,582 ____________
0.81 ______
4,485,316 ____________
1.58 ______
4,064,938 4,501,174 ____________
1.43 1.59 ______
Total Portfolio
8,566,112 ____________
3.02 ______
Other Net Assets Total Net Assets (e)
Italy 203,375 844,180 134,846 942,196
(*)
72
Autostrade Capitalia Enel Snam Rete Gas
13,551,420 ____________
4.77 ______
4,601,370 5,729,536 ____________
1.62 2.02 ______
10,330,906 ____________
3.64 ______
7,086,659 ____________
2.49 ______
3,895,224 4,179,706 7,886,353 ____________
1.37 1.47 2.78 ______
15,961,283 ____________
5.62 ______
5,552,750 5,655,141 5,626,139 4,381,073 6,557,254 4,440,271 4,350,592 4,294,401 10,592,966 7,214,454 6,635,773 4,369,029 4,439,738 8,893,456 4,710,203 4,769,618 ____________
1.96 1.99 1.98 1.54 2.31 1.57 1.53 1.51 3.73 2.54 2.34 1.54 1.56 3.13 1.66 1.68 ______
92,482,858 ____________ 273,274,630
32.57 ______ 96.23
10,712,233 ____________ 283,986,863 ____________
3.77 ______ 100.00 ______
United Kingdom 283,887 1,320,122 820,934 732,230 1,896,104 2,000,130 217,142 347,219 524,422 563,658 940,315 586,287 181,449 351,710 1,718,681 296,182
Ireland 398,133 207,141
1.53 2.33 0.91 ______
Switzerland 35,386 49,269 121,544
2.10 1.52 1.68 1.68 1.56 1.97 2.35 ______
Hungary 64,601
4,341,799 6,625,621 2,584,000 ____________
Spain 551,491
5,968,686 4,330,054 4,760,820 4,772,717 4,443,682 5,583,946 6,659,280 ____________
Greece 104,609
%
Norway
Finland 392,926
Value (e)
Netherlands
Belgium 241,993 66,993
Description
4,466,115 3,935,989 973,588 4,166,862 ____________
1.57 1.39 0.34 1.47 ______
13,542,554 ____________
4.77 ______
Securities lent, see note 12 for further details.
Merrill Lynch International Investment Funds
European Fund
continued
Sector Breakdown as at 30 June 2005
Finance Energy Materials Consumer staples Consumer discretionary Telecommunications services Capital goods Utilities Healthcare Other net assets
% of net assets 36.8 14.6 9.9 6.9 6.7 6.3 6.0 5.3 3.7 3.8 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
73
European Growth Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON / PREFERRED STOCKS (SHARES) Umicore
436,501 ____________
0.97 ______
643,877 ____________
1.44 ______
704,117 1,780,997 1,608,426 ____________
1.57 3.96 3.58 ______
4,093,540 ____________
9.11 ______
105,555 75,288
Finland 48,964
Fortum
France 28,976 9,096 61,064
France Telecom Total Vivendi Universal
Deutsche Boerse Deutsche Post Fresenius (Pref) Porsche (Pref)
1,094,420 666,260 1,000,349 455,102 ____________
2.44 1.48 2.23 1.01 ______
3,216,131 ____________
7.16 ______
561,543 ____________
1.25 ______
DNB NOR Statoil
Altadis Banco Bilbao Vizcaya Argentaria Enagas Telefonica
OTP Bank
Ireland 102,380 175,076 102,599 105,361
Anglo Irish Bank Grafton Group (Units) Kingspan Group McInerney Holdings
1,045,300 1,663,222 1,000,340 906,105 ____________
2.33 3.70 2.22 2.02 ______
4,614,967 ____________
10.27 ______
1,148,486 1,137,673 143,742 673,534 979,786 ____________
2.56 2.53 0.32 1.50 2.18 ______
4,083,221 ____________
9.09 ______
665,206 655,739 1,174,680 657,030 ____________
1.48 1.46 2.62 1.46 ______
3,152,655 ____________
7.02 ______
Italy 52,299 244,005 4,023 60,137 222,932
Autostrade Capitalia Fastweb Saipem UniCredito Italiano
Netherlands 61,995 11,606 42,058 96,622
74
Aegon DSM Euronext Koninklijke Ahold
913,752 1,270,182 ____________ 2,183,934 ____________
2.03 2.83 ______ 4.86 ______
99,880 1,215,764 1,062,430 1,072,754 ____________
0.22 2.71 2.36 2.39 ______
3,450,828 ____________
7.68 ______
1,544,673 ____________
3.44 ______
2,549,714 701,995 665,205 1,000,328 ____________
5.68 1.56 1.48 2.23 ______
4,917,242 ____________
10.95 ______
232,282 373,762 ____________ 606,044 ____________
0.52 0.83 ______ 1.35 ______
534,332 537,119 867,868 715,814 540,009 2,440,645 1,005,486 552,138 482,904 1,559,970 2,220,532 ____________
1.19 1.20 1.93 1.59 1.20 5.43 2.24 1.23 1.08 3.47 4.94 ______
11,456,817 ____________ 44,961,973
25.50 ______ 100.09
(38,813) ____________ 44,923,160 ____________
(0.09) ______ 100.00 ______
Sweden Telefonaktiebolaget LM Ericsson ‘B’
Switzerland 64,583 1,326 3,788 15,417
Novartis Serono ‘B’ Straumann Holding UBS
Hungary 19,958
%
Spain 2,866 94,612 72,919 78,879
575,461
Germany 16,931 34,575 10,465 727
Value (e)
Norway
Belgium 6,559
Description
Merrill Lynch International Investment Funds
Turkey 68,218 102,327
Denizbank Finansbank
United Kingdom 27,318 50,433 99,483 322,440 25,639 120,828 39,764 40,458 63,687 327,658 1,077,880
Anglo American BHP Billiton BP Cable & Wireless Cobham GlaxoSmithKline Royal Bank of Scotland Group Smiths Group Stolt Offshore Tesco Vodafone Group
Total Portfolio Other Net Liabilities Total Net Assets (e)
European Growth Fund
continued
Sector Breakdown as at 30 June 2005
Finance Healthcare Energy Telecommunication services Consumer discretionary Materials Consumer staples Capital goods Information technology Utilities Other net liabilities
% of net assets 30.0 16.3 11.7 10.8 8.3 7.0 5.2 5.0 3.4 2.4 (0.1) ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
75
European Opportunities Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Belgium 252,877 193,211 129,669 46,897 105,736 294,319
Icos Vision Systems Omega Pharma Option Punch International Roularta Media Group Telindus Group
Holding 806,116 527,696
COMMON STOCKS (SHARES) 5,677,089 8,194,078 3,670,929 3,050,650 5,815,480 3,037,372 ____________
0.67 0.96 0.43 0.36 0.68 0.36 ______
29,445,598 ____________
3.46 ______
1,019,010 296,100 ____________
0.12 0.04 ______
1,315,110 ____________
0.16 ______
7,047,556 3,989,725 20,301,920 1,788,287 ____________
0.83 0.47 2.39 0.21 ______
33,127,488 ____________
3.90 ______
3,950,774 770,230 8,557,025 18,088,217 5,516,066 3,686,721 8,260,504 8,839,538 3,980,156 11,031,171 647,876 11,489,828 4,784,974 4,303,684 ____________
0.46 0.09 1.01 2.13 0.65 0.43 0.97 1.04 0.47 1.30 0.08 1.35 0.56 0.51 ______
93,906,764 ____________
11.05 ______
212,398
15,055,162 4,765,875 9,564,176 8,581,260 1,963,599 1,698,025 569,500 ____________
1.76 0.56 1.13 1.01 0.23 0.20 0.07 ______
356,600 512,255 217,988 1,206,103 3,096,136
42,197,597 ____________
4.96 ______
Description Piraeus Bank Sarantis
Aarhus United Mols-Linien
Paddy Power
Alma Media ‘I’ Jaakko Poyry Group Nokian Renkaat OKO Bank ‘A’
France 3,591,613 1,438,404 163,302 724,108 85,987 162,913 835,238 363,767 128,268 186,969 16,498 464,048 44,020 21,980
A Novo Arc International Group Atos Origin Axalto Holding Beneteau Boiron Elior France Telecom Iliad LISI* Manutan International Publicis Groupe Stallergenes Total
AWD Holding* IDS Scheer Software (Bearer) Takkt Technotrans Teles Varetis
Greece 396,362 194,672 1,126,404 143,894 1,262,828
76
Germanos Hellenic Duty Free Shops Intralot – Integrated Lottery Systems & Services National Bank of Greece Notos Com Holdings
10,971,301 2,799,383
1.29 0.33
14,282,803 4,040,544 3,914,767
1.68 0.48 0.46
Merrill Lynch International Investment Funds
51,557,498 ____________
6.07 ______
1,671,043 ____________
0.20 ______
Azimut Holding Engineering Ingegneria Informatica
15,237,731 6,378,877 ____________ 21,616,608 ____________
1.79 0.75 ______ 2.54 ______
3,229,814 8,373,398 ____________ 11,603,212 ____________
0.38 0.99 ______ 1.37 ______
425,396 4,631,472 9,414,115 15,467,991 22,624,771 11,883,048 8,429,963 1,155,850 8,799,588 4,432,364 ____________
0.05 0.54 1.11 1.82 2.66 1.40 0.99 0.14 1.04 0.52 ______
87,264,558 ____________
10.27 ______
9,979,712 9,378,105 10,262,398 10,938,094 ____________
1.17 1.10 1.21 1.29 ______
40,558,309 ____________
4.77 ______
1,805,806 ____________
0.21 ______
3,480,722 880,443 8,395,362 4,082,022 8,310,760 ____________
0.41 0.10 0.99 0.48 0.98 ______
25,149,309 ____________
2.96 ______
7,965,183 3,395,264 2,273,373 7,924,695 4,076,970 6,413,748 2,257,838 1,509,620
0.94 0.40 0.27 0.93 0.48 0.75 0.27 0.18
Luxembourg 392,659 681,318
Gaming VC Holdings SES Global FDR
Netherlands 20,501 181,200 457,440 468,727 663,483 159,504 674,397 23,117 380,605 278,765
Airspray CSM Fugro* Nutreco Holding Stork Ten Cate Unit 4 Agresso Van Lanschot VNU* Wolters Kluwer
Norway 504,597 555,872 1,554,188 1,095,609
Petroleum Geo-Services Statoil Telenor Visma
Spain
Germany 431,380 299,364 279,246 1,068,650 125,070 188,460 50,000
1.46 0.37 ______
Italy 2,970,318 235,818
Finland 454,681 160,876 1,344,498 132,172
%
12,414,186 3,134,514 ____________
Ireland 118,682
Denmark 13,347 7,506
Value (e)
Telvent GIT
Sweden D Carnegie Intentia International ‘B’ Lindex Pergo Telefonaktiebolaget LM Ericsson ‘B’
Switzerland 1,473,987 92,750 9,905 191,790 20,603 126,390 30,650 10,721
ABB Advanced Digital Broadcast Holdings AFG Arbonia-Foster Holding (Bearer) Baloise Holding Banque Cantonale Vaudoise Bucher Industries Cie Financiere Tradition Galenica Holding
European Opportunities Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 3,662 48,375 13,307 230,330 52,886 36,962 23,181 5,370 30,373 128,295
Description Jelmoli Holding Komax Holding Kuoni Reisen Holding ‘B’ Logitech International Quadrant Rieter Holding Schindler Holding Schweiter Technologies Sulzer* UBS
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
Holding
4,154,002 3,013,873 4,463,159 6,119,233 4,602,642 8,465,536 6,880,667 760,308 10,392,982 8,324,390 ____________
0.49 0.35 0.52 0.72 0.54 1.00 0.81 0.09 1.22 0.98 ______
92,993,483 ____________
10.94 ______
8,116,119 2,435,222 4,468,454 12,164,748 2,696,998 963,675 4,152,005 3,850,456 4,185,942 12,231,253 158,054 2,962,570 1,322,118 2,248,563 9,820,264 8,213,875 1,706,105 4,216,521 8,236,323 8,351,542 336,026 22,598,437 2,428,450 1,597,742 8,451,840 2,721,595 8,188,279 4,709,103
0.95 0.29 0.53 1.43 0.32 0.11 0.49 0.45 0.49 1.44 0.02 0.35 0.16 0.26 1.16 0.97 0.20 0.50 0.97 0.98 0.04 2.66 0.29 0.19 0.99 0.32 0.96 0.55
5,372,670 268,379 50,990,498 308,926 2,697,564 634,008 793,973 1,000,774 484,833 2,444,538 2,154,928 4,640,032 3,126,615 5,170,095 1,268,243 777,715 2,396,856 1,256,758 200,000 89,330
United Kingdom 8,330,484 1,960,718 575,506 1,550,400 1,103,922 275,693 410,499 1,078,609 436,738 2,186,987 30,000 893,155 680,858 1,823,533 6,089,433 8,842,576 576,737 1,176,252 2,485,872 389,102 275,500 826,849 1,475,906 1,518,250 2,537,817 2,473,441 2,145,689 1,055,310
(*)
Anite Group AttentiV Systems Group Bespak British Sky Broadcasting BTG Civica Connaught CRC Group Dana Petroleum Dignity Dyson Group Global Energy Development Havelock Europa Healthcare Enterprise Group House of Fraser Intec Telecom Systems Interior Services Group Lambert Howarth Group London Merchant Securities Man Group Microgen NDS Group ADR Nord Anglia Education RFD NXT Paladin Resources Patientline Peacock Group Phoenix IT Group
Description PHS Group Phytopharm Pipex Communications Premier Oil Raymarine Reliance Security Group SDL Sibir Energy Surfcontrol Systems Union Group Tribal Group TTP Communications Ukbetting Umbro Vanco Venture Production VT Group Wagon Whatman Wincanton
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
8,253,597 343,308 6,143,434 3,191,270 8,666,872 4,715,216 1,638,020 3,021,822 3,370,682 4,022,234 5,432,996 3,002,252 2,213,697 8,920,586 7,413,647 4,317,053 12,493,206 3,308,734 805,042 330,320 ____________
0.97 0.04 0.72 0.38 1.02 0.55 0.19 0.36 0.40 0.47 0.64 0.35 0.26 1.05 0.87 0.51 1.47 0.39 0.09 0.04 ______
245,136,267 ____________
28.84 ______
779,348,650 ____________
91.70 ______
0 ____________
0.00 ______
0 ____________ 0 ____________
0.00 ______ 0.00 ______
779,348,650
91.70
70,584,487 ____________ 849,933,137 ____________
8.30 ______ 100.00 ______
Unquoted Securities COMMON STOCKS (SHARES) United Kingdom 535,005
Storedale
USA 132,000
Capital Development
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (e)
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Consumer discretionary Information technology Industrials Finance Telecommunication services Energy Healthcare Consumer staples Materials Other net assets
% of net assets 23.1 19.6 18.6 12.5 5.9 5.4 3.0 2.5 1.1 8.3 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
77
European Value Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Belgium 103,628 335,427
Agfa-Gevaert Belgacom
2,367,900 9,512,710 ____________ 11,880,610 ____________
0.39 1.59 ______ 1.98 ______
7,608,264 ____________
1.27 ______
9,506,161 ____________
1.58 ______
14,615,199 11,593,232 7,820,652 25,571,285 7,967,345 ____________
2.43 1.93 1.30 4.26 1.33 ______
67,567,713 ____________
11.25 ______
9,139,598 9,621,987 11,780,233 7,348,092 9,033,180 6,564,243 14,870,438 ____________
1.52 1.60 1.96 1.23 1.51 1.09 2.48 ______
68,357,771 ____________
11.39 ______
3,225,975 ____________
0.54 ______
10,476,982 ____________
1.74 ______
10,490,005 1,288,662 17,561,788 7,091,182 11,947,610 ____________
1.75 0.21 2.93 1.18 1.99 ______
48,379,247 ____________
8.06 ______
8,759,499 ____________
1.46 ______
Denmark 306,087
Danske Bank (Bearer)
Holding
Description
1,278,656 304,407
Koninklijke Ahold Koninklijke Philips Electronics
Fortum
BNP Paribas* Carrefour Peugeot* Total* Vinci
Germany 152,964 148,855 611,325 183,016 122,070 227,846 277,175
Continental Deutsche Boerse Deutsche Post Deutsche Postbank E.ON Hochtief RWE
DNB NOR Statoil Telenor
EDP – Energias de Portugal
Mol Magyar Olaj- es Gazipari
Ireland 783,033
Bank of Ireland
Italy 2,249,867 178,485 825,660 316,712 2,718,455
Capitalia Enel ENI* Fondiaria-Sai* UniCredito Italiano
Luxembourg 539,378
Arcelor (French Listing)
Altadis (French Listing) Repsol
(*)
78
Aegon Buhrmann Imtech ING Groep*
8,131,065 8,415,184 3,732,717 12,583,178
Securities lent, see note 12 for further details.
Merrill Lynch International Investment Funds
1.35 1.40 0.62 2.10
7.99 ______
9,046,903 13,571,555 10,557,654 ____________
1.51 2.26 1.76 ______
33,176,112 ____________
5.53 ______
9,130,474 ____________
1.52 ______
7,005,303 13,159,735 ____________ 20,165,038 ____________
1.17 2.19 ______ 3.36 ______
7,784,769 2,470,207 4,381,631 ____________
1.30 0.41 0.73 ______
14,636,607 ____________
2.44 ______
6,061,992 14,975,861 10,452,878 7,370,831 ____________
1.01 2.49 1.74 1.23 ______
38,861,562 ____________
6.47 ______
9,262,630 11,481,386 22,792,752 7,053,342 21,822,816 8,224,383 13,142,766 17,832,611 7,797,056 10,968,286 26,772,282 9,080,684 10,199,889 ____________
1.54 1.91 3.80 1.17 3.64 1.37 2.19 2.97 1.30 1.83 4.46 1.51 1.70 ______
176,430,883 ____________ 576,158,111
29.39 ______ 95.97
24,211,657 ____________ 600,369,768 ____________
4.03 ______ 100.00 ______
Sweden 688,963 542,720 129,666
Investor ‘B’ Skandia Forsakrings Volvo ‘B’
Switzerland 547,488 457,517 206,511 66,960
Clariant Credit Suisse Group Holcim Swiss Life Holding
United Kingdom 1,000,364 2,680,186 2,748,622 782,502 2,501,531 1,042,272 650,654 1,393,244 1,882,212 1,471,852 1,058,765 665,389 4,951,181
BAA BAE Systems Barclays Boots Group BP Cadbury Schweppes GlaxoSmithKline HBOS Kesa Electricals Prudential Royal Bank of Scotland Group Smiths Group Vodafone Group
Total Portfolio
Netherlands 757,788 1,027,495 128,228 536,825
47,995,213 ____________
Spain 201,013 622,504
Hungary 46,463
1.45 1.07 ______
Portugal 4,410,857
France 256,407 287,388 160,128 130,599 115,973
%
8,694,861 6,438,208 ____________
Norway 1,045,082 804,432 1,598,903
Finland 722,902
Value (e)
Other Net Assets Total Net Assets (e)
European Value Fund
continued
Sector Breakdown as at 30 June 2005
Finance Energy Capital goods Consumer staples Consumer discretionary Utilities Telecommunication services Materials Healthcare Information technology Other net assets
% of net assets 36.6 17.5 11.2 7.1 6.5 5.7 5.0 3.8 2.2 0.4 4.0 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
79
Global Allocation Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
FUNDS USA 121,100
NASDAQ-100 Index Tracking Stock
4,488,572 ____________
0.16 ______
464,901 ____________ 4,953,473 ____________
0.02 ______ 0.18 ______
Vietnam 339,344
Vietnam Enterprise Investments
Total Funds
9,780 83,296 40,965 43,645 24,986 18,747 17,644
COMMON / PREFERRED STOCKS (SHARES) & WARRANTS / RIGHTS Australia 871,000 1,784,000 250,000 730,000 85,000
BHP Billiton Burns Philp & Co Rio Tinto* WMC Resources Woodside Petroleum
12,019,959 1,234,367 8,519,617 4,334,930 1,890,397 ____________
0.44 0.04 0.31 0.16 0.07 ______
27,999,270 ____________
1.02 ______
920,080 4,390,740 9,521,288 ____________
0.03 0.16 0.35 ______
14,832,108 ____________
0.54 ______
472,812 1,635,683 ____________ 2,108,495 ____________
0.02 0.06 ______ 0.08 ______
Agrium 1,339,310 Canadian Pacific Railway 528,632 Canadian Pacific Railway (US Listing) 1,701,120 Hudson’s Bay 1,272,196 Nortel Networks† 4,909,760 Petro-Canada 1,882,989 Placer Dome (US Listing) 4,330,250 Rogers Communications ‘B’ (US Listing) 5,517,860 Talisman Energy ADR 602,521 ____________ 22,084,638 ____________
0.05 0.02 0.06 0.05 0.18 0.07 0.16 0.20 0.02 ______
Cia Vale do Rio Doce ADR Cia Vale do Rio Doce ADR (Pref) Petroleo Brasileiro ADR
Belgium 17,164 47,842
AGFA-Gevaert Belgacom
Canada 66,500 15,000 48,000 106,700 1,832,000 28,900 277,700 167,825 15,900
0.81 ______
Cayman Islands 98,200
ACE
China Life Insurance ADR 458,136 China Shenhua Energy ‘H’ 4,245,242 Denway Motors 753,955 Hainan Meilan International Airport ‘H’ 457,972 Ping An Insurance Group Company of China ‘H’ 449,449 ____________ 6,364,754 ____________
0.02 0.15 0.02 0.02
2,600,000
0.02 ______ 0.23 ______
28,400 595,500 13,783 31,600
Danske Bank (Bearer)
80
108,656 1,643,152 2,814,955 2,122,530 1,471,147 4,425,151 1,461,293 ____________ 14,046,884 ____________
0.00 0.06 0.10 0.08 0.05 0.17 0.05 ______ 0.51 ______
Fortum Nokia ADR†
Continental Deutsche Boerse Deutsche Post Deutsche Postbank E.ON Hochtief RWE
1,654,920 1,871,716 2,229,466 1,348,643 1,777,160 1,266,320 2,971,285 ____________ 13,119,510 ____________
0.06 0.07 0.08 0.05 0.06 0.05 0.11 ______ 0.48 ______
Cheung Kong (Holdings) HSBC Holdings Hutchison Whampoa Shanghai Electric Group Wharf Holdings
2,338,742 4,232,876 6,278,156 193,809 2,475,941 ____________ 15,519,524 ____________
0.09 0.15 0.23 0.01 0.09 ______ 0.57 ______
Bajaj Auto Container Corporation of India Gujarat Ambuja Cements Hindustan Lever Hindustan Petroleum Housing Development Finance Infosys Technologies Larsen & Toubro Mahanagar Telephone Nigam Oriental Bank of Commerce Reliance Industries State Bank of India Tata Motors Wockhardt
4,290,705 2,542,636 3,385,051 4,710,538 235,466 6,671,238 11,376,101 1,560,551 2,200,231 597,491 26,789,700 1,845,229 1,514,832 186,761 ____________ 67,906,530 ____________
0.16 0.09 0.12 0.17 0.01 0.24 0.41 0.06 0.08 0.02 0.97 0.07 0.06 0.01 ______ 2.47 ______
1,344,569 ____________
0.05 ______
2,040,341 ____________
0.07 ______
676,772 4,930,740 51,824 988,764 ____________ 6,648,100 ____________
0.02 0.18 0.00 0.04 ______ 0.24 ______
2,034,654 231,510 3,409,790 1,343,940 2,247,448 ____________
0.07 0.01 0.13 0.05 0.08 ______
9,267,342 ____________
0.34 ______
Indonesia
1,442,012 ____________
0.05 ______
1,712,401 4,232,634 ____________
0.06 0.16 ______
5,945,035 ____________
0.22 ______
Merrill Lynch International Investment Funds
Bank Danamon Indonesia
Ireland 126,492
Bank of Ireland
Israel
Finland 108,018 250,600
Alcatel ADR Arcelor (French Listing) BNP Paribas Carrefour Peugeot Total Vinci
India 135,000 117,000 2,495,520 1,250,000 33,400 326,000 210,000 60,000 830,000 104,000 1,815,000 117,800 155,000 21,300
0.16 ______
Denmark 48,120
%
Hong Kong 240,000 263,231 694,700 856,000 705,000
4,423,910 ____________
China 16,800 4,400,000 2,112,000 800,000 279,500
Value (US$)
Germany 22,975 24,019 95,970 27,863 19,921 36,460 45,940
Brazil 31,000 173,000 181,600
Description France
Comverse Technology ECI Telecom Ectel Teva Pharmaceutical Industries ADR
Italy 361,983 26,598 132,977 49,790 424,177
Capitalia Enel ENI* Fondiaria-Sai UniCredito Italiano
Global Allocation Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
Japan 1,926,600 455,000 200,000 385,000 369,428 134,000 160,000 85 178,400 125,000 500 48,100 524,000 440,000 66,000 43,200 54,000 138,000 453,000 362,000 220,000 595,000 587 323,200 1,715 45,900 55,000 2,115,000 73,000 1,500,000 86,000 240,800 2,686 390 312,600 39,500 106,400 123,900 145,000 398,800 200 420,000 181,300 323,000 171,200 1,183,000 107,000
Aioi Insurance Ajinomoto Asahi Glass Asahi Kasei Bank of Yokohama Brother Industries Canon Coca-Cola Central Japan Coca-Cola West Japan Credit Saison East Japan Railway Fanuc Fuji Heavy Industries Hitachi Hokkaido Coca-Cola Bottling Honda Motor House Foods Ito-Yokado JGC Kinden Kinki Coca-Cola Bottling Kubota Marco Polo Mikuni Coca-Cola Bottling Millea Holdings Ministop Mitsubishi Mitsui Sumitomo Insurance Murata Manufacturing Nipponkoa Insurance Nissay Dowa General Insurance Nomura Holdings NTT DoCoMo NTT Urban Development RHJ International Rinnai Rohto Pharmaceutical Shin-Etsu Chemical Shinsei Bank Shionogi Sumitomo Mitsui Financial Group Suzuki Motor* Takeda Pharmaceutical Tanabe Seiyaku Toho Tokyo Gas Toyota Industries
9,887,158 5,077,032 2,106,979 1,836,650 2,139,535 1,231,282 8,442,372 708,847 4,021,583 4,167,427 2,574,996 3,063,838 2,187,283 2,679,441 459,759 2,135,024 800,146 4,588,371 5,582,699 2,681,971 2,269,972 3,268,528 1,174,600 3,197,548 23,087,772 841,861 749,369 19,090,068 3,726,516 9,771,431 446,007 2,887,081 3,979,986 1,603,274 7,310,958 976,081 1,385,279 4,712,865 783,431 5,156,160 1,355,261 6,614,215 9,009,322 3,122,611 2,474,887 4,435,724 2,929,261 ____________
0.35 0.19 0.08 0.07 0.08 0.04 0.30 0.03 0.15 0.15 0.09 0.11 0.08 0.10 0.02 0.08 0.03 0.17 0.20 0.10 0.08 0.12 0.04 0.12 0.83 0.03 0.03 0.69 0.14 0.35 0.02 0.11 0.15 0.06 0.26 0.04 0.05 0.17 0.03 0.19 0.05 0.24 0.32 0.11 0.09 0.16 0.11 ______
192,732,461 ____________
7.01 ______
2,417,296 4,131,247 438,035 2,795,352 1,552,754 2,293,602 ____________
0.09 0.15 0.02 0.10 0.06 0.08 ______
13,628,286 ____________
0.50 ______
1,887,735 127,350 2,762,105 ____________
0.07 0.00 0.10 ______
4,777,190 ____________
0.17 ______
Malaysia 220,000 1,495,000 219,000 1,095,000 590,000 830,000
British American Tobacco Malaysia IOI Malakoff Maxis Communications Telekom Malaysia Tenaga Nasional
117,940 146,830 20,081 85,884 204,910 52,534 80,000 38,600
Fomento Economico Mexicano ADR Grupo Industrial Maseca ADR Grupo Televisa ADR
Value (US$)
%
Aegon Buhrmann Imtech ING Groep Koninklijke Ahold Koninklijke Philips Electronics Koninklijke Wessanen Royal Dutch Petroleum (NY Shares)
1,525,613 1,449,714 704,711 2,426,909 1,679,793 1,339,475 1,128,391 2,522,896 ____________
0.06 0.05 0.03 0.09 0.06 0.05 0.04 0.09 ______
12,777,502 ____________
0.47 ______
1,794,902 ____________
0.07 ______
1,623,983 2,489,261 1,935,276 ____________
0.06 0.09 0.07 ______
6,048,520 ____________
0.22 ______
2,187,500 ____________
0.08 ______
1,740,841 ____________
0.06 ______
2,471,517 3,540,233 9,546,345 2,521,956 3,686,803 2,168,289 99,513 2,342,749 2,237,337 6,410,515 ____________
0.09 0.13 0.36 0.09 0.13 0.08 0.00 0.09 0.08 0.23 ______
35,025,257 ____________
1.28 ______
1,305,600 ____________
0.05 ______
846,891 3,904,828 4,482,651 1,755,264 11,797,500 10,624,660 1,279,172 2,472,944 1,228,792 6,538,977 6,635,999 1,489,374 4,461,997 702,869 1,535,489 ____________
0.03 0.14 0.16 0.06 0.43 0.39 0.05 0.09 0.04 0.24 0.24 0.05 0.16 0.03 0.06 ______
59,757,407 ____________
2.17 ______
1,176,539 2,444,569 716,756 ____________
0.04 0.09 0.03 ______
4,337,864 ____________
0.16 ______
New Zealand 430,000
Telecom Corp of New Zealand
Norway 155,606 122,384 243,104
DNB NOR Statoil Telenor
Peru 50,000
Southern Peru Copper ADR
Portugal 697,598
EDP – Energias de Portugal
Singapore 1,750,000 380,000 1,287,000 1,700,000 2,850,000 315,000 26,000 2,100,000 2,192,070 3,900,000
CapitaLand Fraser & Neave Keppel Keppel Land MobileOne Oversea-Chinese Banking Oversea-Chinese Banking (Rights) Parkway Holdings SembCorp Logistics Singapore Telecommunications
South Africa 120,000
Sappi ADR
South Korea 52,000 52,000 145,000 63,851 550,000 269,000 34,700 115,000 4,200 36,740 150,000 166,000 213,800 3,960 75,306
Cheil Industries CJ – Cheil Jedang Korea Electric Power Korea Fund KT ADR KT&G LG Chem LS Cable Nong Shim POSCO POSCO ADR Pusan Bank Samsung Fine Chemicals SK Telecom SK Telecom ADR
Spain
Mexico 31,700 15,000 44,300
Description Netherlands
28,004 95,921 14,548
Altadis Repsol Telefonica ADR
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
81
Global Allocation Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Sweden 98,413 82,039 20,232
Investor ‘B’ Skandia Forsakrings Volvo ‘B’
1,340,588 450,164 824,217 ____________
0.05 0.02 0.03 ______
2,614,969 ____________
0.10 ______
1,127,351 2,915,013 2,035,666 1,500,634 ____________
0.04 0.12 0.07 0.05 ______
7,578,664 ____________
0.28 ______
6,465,480 2,395,554 1,188,847 1,383,101 436,624 697,847 ____________
0.23 0.09 0.04 0.05 0.02 0.03 ______
12,567,453 ____________
0.46 ______
698,620 1,258,775 1,626,826 6,314,473 3,357,560 135,926 3,642,009 1,176,335 5,404,260 392,974 ____________
0.03 0.05 0.06 0.24 0.12 0.00 0.13 0.04 0.20 0.01 ______
24,007,758 ____________
0.88 ______
1,752,197 2,218,442 4,254,794 1,320,965 4,065,433 1,555,001 4,640,260 3,328,871 1,353,499 2,063,730 4,997,671 1,782,322 7,580,075 3,650,094 ____________
0.06 0.08 0.16 0.05 0.15 0.06 0.17 0.12 0.05 0.08 0.18 0.06 0.27 0.13 ______
44,563,354 ____________
1.62 ______
1,914,256 704,220 4,945,354 85,848 11,610 13,671 1,468,422 596,911 1,726,560
0.07 0.03 0.18 0.00 0.00 0.00 0.05 0.02 0.06
Switzerland 84,456 73,870 33,360 11,308
Clariant Credit Suisse Group Holcim Swiss Life Holding
Taiwan 301,000 1,540,909 2,363,869 1,646,963 489,500 1,250,000
Chunghwa Telecom ADR Delta Electronics SinoPac Financial Holdings Taishin Financial Holdings Taiwan Glass Industrial Yungtay Engineering
Thailand 1,110,000 2,500,000 9,600,600 1,175,004 361,200 1,835,000 621,700 174,800 4,750,000 585,000
Bangkok Expressway Hana Microelectronics Land & Houses PTT PTT Exploration & Production Sansiri Siam Cement Siam City Cement Siam Commercial Bank Thai Union Frozen Products
United Kingdom 156,980 429,592 425,632 121,568 386,580 163,473 190,565 215,748 271,040 229,729 163,953 108,338 3,052,280 147,300
BAA BAE Systems Barclays Boots Group BP Cadbury Schweppes GlaxoSmithKline HBOS Kesa Electricals Prudential Royal Bank of Scotland Group Smiths Group Vodafone Group Vodafone Group ADR
USA 528,800 72,600 100,905 3,066 1,290 1,519 383,400 27,157 105,600
82
3Com† Aames Investment Abbott Laboratories AboveNet AboveNet (Wts 8/9/2008) AboveNet (Wts 8/9/2010) Adaptec ADC Telecommunications AES
Merrill Lynch International Investment Funds
Holding
Description
Value (US$)
%
73,924 110,200 72,861 6,700 225,000 42,950 60,800 56,600 107,990 24,700 364,310 28,000 10,500 79,900 64,700 53,600 54,200 42,000 14,500 53,752 94,970 53,200 52,000 279,200 105,000 162,200 32,900 202,400 300,900 41,000 18,966 11,500 10,400 873,190 154,638 35,600 108,600 211,200 485,550 102,800 329,742 91,700 175,140 506,850 37,900 51,000 48,532 13,000 293,000 72,800 77,600 63,400 63,800 7,000 6,800 35,900 45,800 53,200 10,700 106,000 63,300 1,234,400
Agere Systems 904,830 Alcoa 2,888,342 Aleris International 1,637,187 Allergan 575,195 Alliance One International 1,365,750 Allstate 2,572,276 Alltel 3,744,064 Altera 1,130,868 Altria Group* 7,062,546 Amerada Hess 2,669,082 American International Group 21,341,280 AmerisourceBergen 1,935,360 Amgen 639,765 Andrx† 1,640,347 Anheuser-Busch 2,970,377 Archer-Daniels-Midland 1,162,048 Assurant 1,962,040 Automatic Data Processing 1,777,860 Baker Hughes 737,760 Bank of America 2,473,130 Bank of New York 2,782,621 Baxter International 1,984,892 BellSouth 1,383,720 BMC Software† 5,053,520 Borland Software† 720,300 Bowater 5,365,576 Bristol West Holdings 601,741 Bristol-Myers Squibb* 5,100,480 Brocade Communication Systems 1,179,558 Career Education† 1,519,050 Catellus Development 624,171 Celgene 465,750 CenturyTel 360,984 Cerberus NCB Acquisition (Wts 29/8/2013) 1,309,784 Chevron 8,749,418 Chicago Bridge & Iron (NY Shares) 783,200 Cincinnati Bell 465,894 Cirrus Logic† 1,113,235 Cisco Systems† 9,419,670 CIT Group 4,449,184 Citigroup‡ 15,448,412 Coca-Cola 3,897,250 Comcast ‘A’ 5,390,809 Computer Associates International 14,029,607 Compuware 268,711 ConAgra Foods 1,180,650 ConocoPhillips 2,817,768 Consol Energy‡ 701,220 Corinthian Colleges† 3,814,860 Corn Products International 1,735,552 Crown Holdings‡ 1,115,112 CSX 2,739,514 CVS 1,871,254 Darden Restaurants 231,000 Deere & Co 453,152 Deltic Timber 1,380,355 Devon Energy 2,319,770 DIRECTV Group 815,556 Doral Financial 177,085 DoubleClick 892,520 El Du Pont de Nemours & Co 2,801,658 El Paso† 14,602,952
0.03 0.11 0.06 0.02 0.05 0.09 0.14 0.04 0.26 0.10 0.79 0.07 0.02 0.06 0.11 0.04 0.07 0.06 0.03 0.09 0.10 0.07 0.05 0.18 0.03 0.20 0.02 0.19 0.04 0.06 0.02 0.02 0.01 0.05 0.32 0.03 0.02 0.04 0.34 0.16 0.56 0.14 0.20 0.51 0.01 0.04 0.10 0.03 0.14 0.06 0.04 0.10 0.07 0.01 0.02 0.05 0.08 0.03 0.01 0.03 0.10 0.53
Global Allocation Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
3,150 77,500 72,500 147,770 62,500 26,600 91,900 13,900 1,261,804 492,800 18,000 106,375 159,315 138,900 6,700 783,949 31,200 114,900 5,300 32,100 16,600 48,600 21,600 12,200 232,734 30,800 52,700 22,900 77,240 206,100 107,900 175,000 50,500 48,800 42,500 20,400 257,600 193,630 118,000 68,481 180,600 16,200 15,600 422,200 1,911,000 51,600 5,300 27,501 21,006 136,000 11,600 192,600 46,835 230,000 22,900 145,400 25,000 60,400 389,100 48,600
EL Paso ‘144A’ Eli Lilly & Co ENSCO International Exxon Mobil‡ Fannie Mae FedEx Fifth Third Bancorp Forest Laboratories Foster Wheeler Foster Wheeler (Wts 24/9/2007) Freddie Mac Free-McMoRan Copper & Gold ‘B’ Friedman Billings Ramsey Group ‘A’* General Communication ‘A’ General Dynamics General Electric Gillette GlobalSantaFe Goldman Sachs Group Halliburton Hartford Financial Services HCA Health Management Associates ‘A’ Healthsouth Hewlett-Packard HJ Heinz Home Depot Humana IBM Inco Information Resources (Rights) Intel† International Paper IVAX Jabil Circuit† James River Coal JDS Uniphase Johnson & Johnson JP Morgan Chase & Co Kerr-McGee Key Energy Services Kimberly-Clark King Pharmaceuticals Knight Capital Group ‘A’† La Quinta Lear Lehman Brothers Holdings Leucadia National Liberty Global ‘A’ Liberty Media ‘A’ LifePoint Hospitals Lucent Technologies Lyondell Chemical Macquarie Infrastructure Company Trust Manor Care Marathon Oil Massey Energy† Maverick Tube Maxtor MBNA
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Holding
3,372,863 4,331,475 2,603,475 8,607,603 3,658,125 2,199,288 3,840,501 547,382 23,204,576 369,600 1,176,840 4,048,633 2,259,087 1,361,220 742,695 27,508,769 1,600,560 4,675,281 547,331 1,545,294 1,261,434 2,797,416 566,784 68,625 5,560,015 1,084,160 2,092,717 911,420 5,792,228 7,986,374 64,740 4,600,750 1,567,520 1,048,712 1,315,800 702,372 392,582 12,696,319 4,231,480 5,254,547 2,197,902 1,025,946 162,864 3,238,274 17,944,290 1,910,232 528,834 1,070,339 980,140 1,389,920 588,584 587,430 1,264,077 6,536,600 921,038 7,886,496 948,250 1,801,732 2,077,794 1,285,956
0.12 0.16 0.09 0.31 0.13 0.08 0.14 0.02 0.85 0.01 0.04 0.15 0.08 0.05 0.03 1.01 0.06 0.17 0.02 0.06 0.05 0.10 0.02 0.00 0.20 0.04 0.08 0.03 0.21 0.29 0.00 0.17 0.06 0.04 0.05 0.03 0.01 0.46 0.15 0.19 0.08 0.04 0.01 0.12 0.66 0.07 0.02 0.04 0.04 0.05 0.02 0.02 0.05 0.24 0.03 0.29 0.03 0.07 0.08 0.05
629,200 14,655 32,475 37,000 231,400 13,200 90,500 32,199 117,900 683,000 24,905 45,800 40,200 31,600 14,600 101,700 79,700 13,800 19,200 63,400 42,731 64,100 33,000 709,101 114,300 1,900 55,400 16,900 507,400 29,500 20,200 87,000 342,000 45,286 58,700 219,500 156,200 61,700 42,000 536,400 114,600 17,000 158,050 168,579 63,000 49,200 631,300 38,300 210,800 21,300 363,900 17,200 100,640 35,800 23,500 40,100 38,500 174,630 167,500 282,500 115,700
Description McDermott International† McLeodUSA ‘A’ McLeodUSA (Wts 16/4/2007) Mellon Financial Merck & Co† MetLife MetLife ‘B’ (Pref) Metromedia International Group Micron Technology Microsoft Mittal Steel (NY Shares) Molson Coors Brewing ‘B’ Morgan Stanley* Motorola Mylan Laboratories National Australia Bank Navistar International Noble Noble Energy Novell† NTL Occidental Petroleum Papa John’s International Pfizer Pier 1 Imports PLD Telekom ‘144A’ (Wts 1/6/2006) PPL Prudential Financial Quanta Services† Ralcorp Holdings Raytheon Rowan Sanmina-SCI Santander BanCorp (US Listing) Sara Lee SBC Communications‡ Schering-Plough Schlumberger‡ Schwab (Charles) Siebel Systems*† Smurfit-Stone Container Sports Authority† Sprint (FON Group) St Paul Travelers Stewart Enterprises ‘A’ Stone Energy Sun Microsystems Sysco Tellabs Tenet Healthcare TIBCO Software† Tidewater Time Warner Todco Transocean Triad Hospitals Tribune Tyco International Tyson Foods ‘A’† Unifi Union Pacific
Value (US$)
%
13,345,332 4,983 162 1,063,010 7,210,424 602,052 2,407,300 41,859 1,226,160 17,129,640 600,958 2,819,448 2,142,660 588,076 280,466 3,896,127 2,585,468 848,562 1,466,112 392,446 2,925,364 5,013,261 1,311,090 19,642,098 1,647,063 2 3,294,084 1,115,907 4,500,638 1,216,875 795,678 2,616,090 1,915,200 1,157,057 1,157,564 5,241,660 3,049,024 4,719,433 476,280 4,757,868 1,197,570 550,970 3,993,924 6,736,417 414,540 2,400,960 2,373,688 1,378,800 1,859,256 262,842 2,383,509 658,244 1,686,726 908,604 1,279,105 2,185,450 1,370,600 5,120,152 2,963,075 1,186,500 7,521,658
0.49 0.00 0.00 0.04 0.26 0.02 0.09 0.00 0.04 0.62 0.02 0.10 0.08 0.02 0.01 0.14 0.09 0.03 0.05 0.01 0.11 0.18 0.05 0.73 0.06 0.00 0.12 0.04 0.16 0.04 0.03 0.10 0.07 0.04 0.04 0.19 0.11 0.17 0.02 0.17 0.04 0.02 0.15 0.25 0.01 0.09 0.09 0.05 0.07 0.01 0.09 0.02 0.06 0.03 0.05 0.08 0.05 0.18 0.11 0.04 0.27
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
83
Global Allocation Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 20,200 58,200 31,488 41,300 116,400 197,766 49,800 35,100 230,330 44,400 33,500 15,900 323,400 79,500 80,300 21,200 71,980 82,000 41,000
Description United States Steel Unocal Ventas Veritas Software Verizon Communications Viacom ‘B’ Wachovia Walgreen Wal-Mart Stores Washington Mutual Waters Watson Pharmaceuticals webMethods† WellChoice Wells Fargo & Co Williams Wyeth XL Capital XL Capital ‘A’
Total Common / Preferred Stocks (Shares) & Warrants / Rights
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
709,222 3,799,296 947,789 1,024,653 4,049,556 6,451,127 2,519,880 1,628,640 11,198,645 1,816,848 1,258,260 476,364 1,853,082 5,592,030 4,977,797 400,680 3,199,511 1,968,000 3,054,910 _____________
0.03 0.14 0.03 0.04 0.15 0.24 0.09 0.06 0.41 0.07 0.05 0.02 0.07 0.20 0.18 0.01 0.12 0.07 0.11 ______
647,880,126 _____________
23.62 ______
1,290,418,676 _____________
47.04 ______
¥186,000,000 ¥409,000,000 ¥500,000,000 ¥975,000,000 ¥400,000,000 ¥725,000,000
¥750,000,000 ¥405,000,000 ¥208,000,000 ¥240,000,000
e7,250,000 e38,600
15,214,586 _____________
0.56 ______
Canadian Government 4% 1/9/2010_____________ 6,811,983
0.25 ______
Caisse d’Amortissement de la Dette Sociale 4% 25/10/2014 6,440,084 ERAP 2.875% EMTN 12/7/2006‡ 8,816,420 Infogrames Entertainment ‘WW’ 4% 1/4/2009 237,324 _____________
e7,250,000 e8,500,000
0.01 ______ 0.56 ______
Federal State of North Rhine Westphalia ‘387’ 4.25% 16/2/2007 18,703,061 Germany ‘136’ 5% 19/8/2005‡ 32,822,558 Infineon Technologies Holding ‘IFX’ 4.25% 6/2/2007‡ 4,464,045 Kreditanstalt fuer Wiederaufbau 3.125% EMTN 15/11/2006‡ 8,868,692 Kreditanstalt fuer Wiederaufbau 4.25% 4/7/2014 11,159,097 ____________ 76,017,453 ____________
0.68 1.20
PLz21,375,000
Iceland Rikisbref 7.25% 17/5/2013 ____________ 4,693,046 Zee Telefilms 0.5% 29/4/2009
e30,500,000
84
European Investment Bank 3.5% 15/10/2005‡ European Investment Bank 4% 15/1/2007‡
1.86 ______
2,323,901 ____________
0.09 ______
Dutch Government 3.75% 15/7/2014 ____________ 6,657,886
0.24 ______
0.13
0.26
Perbadanan Johor 1% 31/7/2009
Government of New Zealand ‘216’ 4.5% 15/2/2016 4,343,427 ____________
0.16 ______
Poland Government Bond 3% 24/8/2016
6,442,514 ____________
0.24 ______
BCP Finance Bank 4.75% 20/6/2011 ____________ 2,468,354
0.09 ______
Sweden SKr67,000,000
£437,000 £7,500,000
0.16 0.32
£825,000
0.41 ______ 2.77 ______
£9,625,000
0.17 ______
£2,500,000 £1,650,000
5,226,375 ____________
0.19 ______
International e8,000,000
e2,000,000
e4,050,000 e2,750,000 £16,000,000
India US$5,430,000
50,969,795 ____________
0.32
Government of Sweden ‘3101’ 4% 1/12/2008
10,792,312 ____________
0.40 ______
AES 8.375% 1/3/2011 834,508 Bank Nederlandse Gemeenten 4.625% EMTN 7/12/2006 13,500,820 Colt Telecom Group 2% 29/3/2006 5,608,725 Colt Telecom Group 2% 3/4/2007 3,970,012 European Investment Bank 6.125% ‡ 7/12/2005 28,853,219 International Bank for Reconstruction & Development 7.125% 30/7/2007 1,561,303 Kreditanstalt fuer Wiederaufbau 4.125% 7/6/2006‡ 17,241,395 Kreditanstalt fuer Wiederaufbau 4.5% 7/12/2008 4,510,593 Kreditanstalt fuer Wiederaufbau 4.8% 27/10/2006 2,972,720 Kreditanstalt fuer Wiederaufbau 5.375% 7/12/2007 4,590,559 Petroleos Mexicanos 14.5% 31/3/2006 1,210,684 ____________
0.03
United Kingdom
Iceland ISK311,000,000
0.25 0.17 0.09 0.19 ______
0.16
Portugal 0.23 0.32
Germany e27,130,000 e3,650,000
0.09 0.20
Poland
15,493,828 _____________ e15,000,000
Bank of Fukuoka ‘2’ 1.1% 28/9/2007 2,480,873 Bank of Kyoto ‘1’ 1.9% 30/9/2009 5,561,494 Export-Import Bank of Japan 2.875% 28/7/2005 4,525,916 General Electric Capital 0.1% 20/12/2005 8,813,160 General Electric Capital EMTN 1.4% 2/11/2006 3,679,262 International Bank for Reconstruction & Development ‘670’ 2% 18/2/2008 6,894,325 Italy Government International Bond 0.375% 10/10/2006 6,811,037 Mitsubishi 0% 17/6/2011 4,688,355 Shoei 0% 30/12/2009 2,419,592 SMFG Finance 0% 11/7/2005 5,095,781 ____________
Netherlands
France e5,000,000
%
Malaysia MYR8,350,000
NZ$4,650,000
Canada C$8,150,000
Value (US$)
New Zealand
Australia Government of Australia ‘705’ 7.5% 15/7/2005
Description Japan
e5,250,000
BONDS A$20,000,000
Holding
£2,500,000 £640,000
9,680,048
0.35
84,854,538 ____________ 37,877,274 ____________ 47,557,322 ____________
Merrill Lynch International Investment Funds
1.38 ______ 1.73 ______
0.49 0.20 0.14 1.06
0.06 0.63 0.16 0.11 0.17 0.04 ______ 3.09 ______
Global Allocation Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
US$1,070,000 US$2,580,000 US$6,170,000 US$900,000 US$400,000 US$733,000 US$515,000 US$1,600,000 US$1,900,000 US$3,100,000 US$5,680,000 US$3,450,000 US$2,450,000 US$1,210,000 US$600,000 US$7,467,061 US$82 US$3,300,000 US$6,000,000 US$1,067,000 US$12,118,750 US$480,000 US$460,000 US$3,750,000 US$3,035,000 US$3,725,000 US$1,625,000 US$975,000 US$5,525,000 US$1,875,000 US$2,152,000 US$2,152,000 US$1,476,000 US$1,325,000 US$3,396,980 US$590,000 US$3,025,000 US$712,484 US$2,400,000 US$1,700,000 US$2,200,000 US$885,000
Abgenix ‘144 A’ 1.75% 15/12/2011 961,663 Abgenix 3.5% 15/3/2007 2,451,000 Anchor Glass Container Bankruptcy 2002 11% 15/2/2013 4,797,175 ASM International 0% 7/12/2011 875,250 ASM International 4.5% 6/12/2011 389,000 Aventine Renewable Energy 9.41% 15/12/2011 699,001 Beverly Enterprises 7.875% 15/6/2014 563,925 Burns Philip Capital Property 10.75% 15/2/2011 1,772,000 Calpine 7.625% 15/4/2006 1,805,000 Calpine Generating ‘144A’ FRN 4/2010 3,069,000 Calpine Generating FRN 4/2009 5,765,200 Conexant Systems 4% 1/2/2007 3,182,625 Cosan SA Industria e Comercio 9% 1/11/2009 2,538,641 Crown Cork & Seal 7.5% 15/12/2096 1,034,550 Crown European Holdings 10.875% 1/3/2013 708,000 Empresa Electrica del Norte Grande 4% 5/11/2017 6,832,361 Fannie Mae 0% 8,007,741 Feringghi Capital 0% 22/12/2009 3,493,875 First Pacific Finance 0% 18/4/2010 6,420,000 Fortis Insurance 7.75% 26/1/2008 1,161,696 Foster Wheeler 10.36% 15/9/2011 12,664,094 GenCorp 5.75% 15/4/2007 533,400 Generall Nutrition Centers ‘144A’ 8.625% 15/1/2011 430,100 Hutchison Whampoa International 03/33 5.45% 24/11/2010 3,876,788 J Ray McDermott ‘144A’ 11% 15/12/2013 3,414,375 LG Telecom 8.25% 15/7/2009 3,990,406 LSI Logic 4% 1/11/2006 1,600,625 Lucent Technologies 8% 1/8/2031 1,009,125 Mandra Foresty Finance 12% 15/5/2013 5,525,000 McDermott MTNB 8.75% 19/5/2023 1,884,375 MCI 6.91% 1/5/2007 2,186,970 MCI 7.69% 1/5/2009 2,246,150 MCI 8.735% 1/5/2014 1,656,810 McMoran Exploration 5.25% 10/6/2011 1,760,594 Metromedia International Group ‘B’ 10.5% 30/9/2007 3,413,965 Momenta 2.5% 1/8/2007 589,951 Nextel Communications 5.25% 15/1/2010 3,047,688 Northwest Airlines ‘933B’ 9.485% 1/4/2015 447,152 Rogers Wireless Communications FRN 15/12/2010 2,514,000 Tata Motors ‘144A’ 1% 31/7/2008 2,934,433 Tenet Healthcare 9.25% 1/2/2015 2,294,156 Triad Acquisition ‘144A’ 11.125% 1/5/2013 900,488
Holding US$750,000
USA 0.04 0.09 0.17 0.03 0.01 0.03 0.02 0.06 0.07 0.11 0.21 0.12
US$4,400,000 US$26,500,000 US$2,750,000 US$5,000,000 US$3,000,000 US$21,125,000 US$4,000,000 US$35,008,000 US$2,600,000
Description
Value (US$)
%
Tyco International ‘144A’ 2.75% 15/1/2018 971,250 Uno Restaurant 10% 15/2/2011 4,216,073 US Treasury 3.625% 30/4/2007 26,496,894 US Treasury 3.5% 31/5/2007 2,743,340 US Treasury 4% 15/6/2009 5,048,828 US Treasury 4.75% 15/5/2014‡ 3,174,023 US Treasury 1.625% 15/1/2015 21,078,789 Vitro Envases Norteamerica 10.75% 23/7/2011 3,917,010 Windmill Funding 0% 13/7/2005 34,966,046 Brazilian Government International 8.25% 20/1/2034 2,523,300 ____________ 220,583,901 ____________
0.09 ______ 8.04 ______
560,451,221 ____________
20.44 ______
Amsterdam Funding 0% 6/7/2005 34,980,649 Blue Ridge Asset Funding 0% 20/7/2005 31,506,431 Chariot Funding 0% 22/7/2005 29,023,639 Ciesco 0% 26/7/2005 17,222,356 Clipper Receivables 0% 6/7/2005 14,991,707 CRC Funding 0% 15/7/2005 34,951,294 Dexia Delaware 0% 8/7/2005 26,483,454 DNB Nor Bank 0% 28/7/2005 24,410,424 Dupont EI De Nemour 0% 19/7/2005 27,179,007 Emerson Electric 0% 25/7/2005 34,918,821 Fortis Funding 0% 27/7/2005 40,422,486 Goldman Sachs 0% 7/12/2005 41,707,811 IXIX 0% 21/7/2005 32,679,355 Kredit fuer Wiederbau International Finance 0% 5/7/2005 16,216,526 New CTR Asset Trust 0% 7/7/2005 24,983,875 Newport Funding 0% 6/7/2005 21,508,102 Nordea North America 0% 29/7/2005 39,106,499 Old Line Funding 0% 8/7/2005 24,981,563 Park Avenue Receivables 0% 1/8/2005 29,579,014 Preferred Receivable Funding 0% 11/7/2005 8,008,871 Rabobank USA Finance 0% 25/7/2005 29,119,304 Ranger Funding 0% 19/7/2005 24,650,472 Swedbank 0% 14/7/2005 9,987,094 Thunder Bay Capital 0% 1/7/2005 19,998,158 UBS Finance (Delaware) 0% 8/2/2005 44,560,079 Verizon Network Funding 0% 18/7/2005 36,185,469 Verizon Network Funding 0% 7/7/2005 34,977,425 _____________
1.28
Total Bonds
0.04 0.15 0.97 0.10 0.18 0.12 0.77 0.14 1.28
COMMERCIAL PAPER 0.09 0.04 0.03 0.25 0.29 0.13 0.23 0.04 0.46 0.02 0.02 0.14 0.12 0.15 0.06 0.04 0.20 0.07 0.08 0.08 0.06 0.06
USA US$35,000,000 US$31,565,000 US$29,083,000 US$17,264,000 US$15,000,000 US$35,000,000 US$26,503,000 US$24,474,000 US$27,227,000 US$35,000,000 US$40,524,000 US$41,754,000 US$32,742,000 US$16,224,000 US$25,000,000 US$21,520,000 US$39,212,000 US$25,000,000 US$29,670,000 US$8,017,000
1.15 1.06 0.63 0.55 1.27 0.97 0.89 0.99 1.27 1.47 1.52 1.19 0.59 0.91 0.78 1.43 0.91 1.08 0.29 1.06 0.90 0.36 0.73
0.12 0.02
US$29,187,000 US$24,694,000 US$10,000,000 US$20,000,000 US$44,701,000
0.11
US$36,246,000
0.02
US$35,000,000
0.09 0.11 0.08
Total Commercial Paper
754,339,885 _____________
1.28 ______ 27.50 ______
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
2,610,163,254
95.16
1.62 1.32
0.03
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
85
Global Allocation Fund
continued
Portfolio of Investments 30 June 2005 Unquoted Securities Holding
Unquoted Securities
Description
Value (US$) _____________
%
Holding
______ MYR36,500,000
WARRANTS USA 5,525
Mandra Foresty (Wts 15/5/2013)
0 _____________ 0 _____________
Total Warrants
0.00 ______ 0.00 ______
Description Malaysian Government ‘386X’ 8.6% 1/12/2007
Metromedia Fiber Network 0% 15/12/2009
Total Unquoted Securities Total Portfolio
Canada C$1,325,000
(*) (†) (‡)
Rogers Wireless Communications ‘144A’ 7.625% 15/12/2011
1,112,316 _____________
0.04 ______
10,806,294 _____________
0.39 ______
0 _____________ 11,918,610 _____________
0.00 ______ 0.43 ______
11,918,610 _____________ 2,622,081,865
0.43 ______ 95.59
Other Net Assets Total Net Assets (US$)
120,980,825 _____________ 2,743,062,690 _____________
4.41 ______ 100.00 ______
Securities lent, see note 12 for further details. Underlying securities, see note 13 for further details. Securities held as collateral, see note 13 for further details.
Hedged Share Class Open Forward Foreign Exchange Transactions as at 30 June 2005
Sector Breakdown as at 30 June 2005
Fixed interest Finance Capital goods Information technology Energy Materials Healthcare Consumer discretionary Consumer staples Telecommunication services Utilities Other net assets
% of net assets 48.4 12.0 5.5 5.0 4.8 4.1 3.9 3.7 3.3 3.3 1.6 4.4 ____________
Purchases US$14,358,265 US$10,043,850 US$3,648,660 US$3,792,264 Net unrealised profit
Open Futures Contracts as at 30 June 2005 Number of Contracts 723 1,746 349 449 (21) 333
Issuer MSCI Euro Index Euro STOXX FTSE 100 TSE Topix Japanese Government Bond (TSE) STD & Poors 500 IDX
Total commitment
Expiration Value date US$ March 2005 16,311,298 September 2005 67,356,239 32,174,709 September 2005 September 2005 47,646,499 September 2005 (2,679,079,651) 100,457,775 September 2005 ___________ (2,431,444,429) ___________
Note: The net unrealised profit of US$3,372,073 attributed to these transactions is included above in Other Net Assets (see Note 2c).
Swaps as at 30 June 2005 Nominal Value US$ 1,030,000
Description Credit Default Swap (CSFB) (Fund receives fixed 1.12% and pays default protection on United Mexican States 8/4/2033) (20/5/2010)
Unrealised profit US$
8,439 __________
Note: The net unrealised profit attributed to these transactions is included in above Other Net Assets (see Note 2c).
Merrill Lynch International Investment Funds
Sales A$18,825,000 £5,500,000 £2,000,000 £2,000,000
Value date 15/7/2005 27/7/2005 18/8/2005 15/9/2005
Unrealised profit e 59,972 188,690 67,267 34,579 ________ 350,508 ________
Note: The US$ equivalent - US$422,553 - of the net unrealised profit attributed to these transactions is included above in Other Net Assets (see Note 2c). As at the 30 June 2005, the exchange rate used to convert from e is: 1 US$ = 0.8295 Euros.
100.0 ____________
86
%
USA US$2,350,000 Total Bonds
BONDS
Value (US$)
Malaysia
Global Allocation Fund
continued
Written Call Options as at 30 June 2005 Par Value Subject to Call US$
Issuer
(530) 3 Com Call Option strike price US$5 expiring on 21/1/2006 (700) Andrx Group Call Option strike price US$20 expiring on 20/1/2007 (2,792) BMC Software Call Option strike price US$15 expiring on 21/1/2006 (890) Borland Software Call Option strike price US$5 expiring on 21/1/2006 (410) Career Education Call Option strike price US$25 expiring on 20/1/2007 (1,072) Cirrus Logic Call Option strike price US$5 expiring on 21/1/2006 (1,040) Cirrus Logic Call Option strike price US$5 expiring on 21/1/2007 (950) Cisco Systems Call Option strike price US$17.5 expiring on 21/1/2006 (430) Corinthian College Call Option strike price US$15 expiring on 21/1/2006 (325) Corinthian College Call Option strike price US$20 expiring on 21/1/2006 (1,793) Corinthian College Call Option strike price US$20 expiring on 21/1/2006 (382) Corinthian College Call Option strike price US$15 expiring on 31/1/2006 (1,074) El Paso Call Option strike price US$12.5 expiring on 21/1/2006 (446) Intel Call Option strike price US$22.5 expiring on 21/1/2006 (425) Jabil Circuit Call Option strike price US$20 expiring on 21/1/2006 (3,055) Knight Capital Call Option strike price US$7.5 expiring on 20/1/2007 (250) Massey Energy Call Option strike price US$35 expiring on 21/1/2006 (1,339) McDermott International Call Option strike price US$20 expiring on 20/1/2006 (1,331) McDermott International Call Option strike price US$17.5 expiring on 21/1/2006
Unrealised profit/(loss) US$
Value US$
50,084
(10,600)
(9,112)
(294,000)
(485,277) (1,116,800)
(51,625)
(178,000)
(230,851)
(729,800)
(31,059)
(112,560)
(23,925)
(140,400)
(64,607)
(261,250)
114,806
(43,000)
80,273
(8,125)
396,663
(44,825)
–
(84,116)
131,021
(85,920)
(106,151)
(209,620)
(274,133)
(502,350)
(44,480)
(488,800)
(53,134)
(217,500)
(155,744)
(468,650)
(167,052)
(585,640)
Par Value Subject to Call US$
Issuer
(460) McDermott International Call Option strike price US$25 expiring on 21/1/2006 (313) McDermott International Call Option strike price US$22.5 expiring on 20/1/2007 (220) Merck Call Option strike price US$27.5 expiring on 21/1/2006 (227) Nokia Call Option strike price US$60 expiring on 20/1/2007 (435) Nokia Call Option strike price US$15 expiring on 21/1/2006 (5,211) Nortel Networks Call Option strike price US$2.5 expiring on 21/1/2006 (1,374) Nortel Networks Call Option strike price US$2.5 expiring on 21/1/2006 (634) Novell Call Option strike price US$5 expiring on 20/1/2007 (429) Quanta Services Call Option strike price US$7.5 expiring on 19/11/2005 (255) Quanta Services Call Option strike price US$7.5 expiring on 20/8/2005 (836) Quanta Services Call Option strike price US$10 expiring on 21/1/2006 (4,316) Siebel Systems Call Option strike price US$7.5 expiring on 21/1/2006 (170) Sports Authority Call Option strike price US$25 expiring on 22/10/2005 (1,805) Tibco Software Call Option strike price US$7.5 expiring on 19/11/2005 (1,834) Tibco Software Call Option strike price US$7.5 expiring on 20/1/2007 (837) Tyson Foods Call Option strike price US$17.5 expiring on 21/1/2006 (1,844) Webmethods Call Option strike price US$5 expiring on 22/10/2005 (799) Webmethods Call Option strike price US$5 expiring on 22/10/2005 (591) Webmethods Call Option strike price US$5 expiring on 21/1/2006 Total Written Call Options
Unrealised profit/(loss) US$
Value US$
56,115
(57,500)
(18,346)
(125,200)
(27,061)
(88,000)
(21,118)
(181,600)
(53,507)
(121,800)
543,418
(260,550)
167,622
(68,700)
(5,078)
(136,310)
(54,056)
(96,525)
(12,555)
(42,075)
16,088
(58,520)
1,640
(733,720)
(82,962)
(142,800)
155,327
(81,225)
(13,654)
(229,250)
64,443
(117,180)
(28,044)
(221,280)
23,970
(95,880)
(18,324) _________ (79,785) ____________ (230,385) (8,519,856) ____________ _________
Note: Written Call Options are included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
87
Global Bond Fund (Euro) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS Republic of Austria ‘2’ 4.65% 15/1/2018
US$1,430,000
12,291,531 ____________
4.17 ______
Canadian Government ‘WL43’ 5.75% 1/6/2029
3,045,467 ____________
1.03 ______
CAM International EMTN 5.75% 3/4/2012
£550,000 e1,000,000 £11,669,000
Cayman Islands e1,390,000
e2,770,000 US$1,850,000
Canada C$3,721,000
1,470,648 ____________
0.50 ______
e3,000,000
US$2,570,000
Government of France 4.5% 12/7/2006 19,285,212 Government of France 5% 12/7/2005____________ 3,002,550
6.55 1.02 ______
22,287,762 ____________
7.57 ______
Germany 2.5% 16/9/2005 8,007,200 Germany ‘00’ 5.25% 4/1/2011 16,622,437 Germany ‘02’ 5% 4/7/2012 5,017,835 Germany ‘03’ 4.75% 4/7/2034 5,540,793 Germany ‘04’ 3.75% 4/1/2015 7,836,738 Germany ‘05’ 4% 4/1/2037 8,247,285 Germany ‘139’ 4% 16/2/2007 12,381,240 Germany ‘143’ 3.5% 10/10/2008 1,424,442 Germany ‘144’ 3.25% 17/4/2009 1,678,859 Germany ‘99’ 3.75% 4/1/2009 5,324,043 Germany ‘99’ 5.375% 4/1/2010 7,095,981 Land Hessen ‘9801’ 5% 27/4/2010 3,963,862 ThyssenKrupp EMTN 4.375% 18/3/2015 1,234,367 ____________ 84,375,082 ____________
2.72 5.65 1.70 1.88 2.66 2.80 4.21 0.48 0.57 1.81 2.41 1.35
Germany e8,000,000 e14,658,000 e4,415,000 e4,657,000 e7,443,000 e7,776,000 e12,000,000 e1,370,000 e1,625,000 e5,074,000 e6,318,000 e3,579,043 e1,230,000
0.42 ______ 28.66 ______
Japan e1,600,000 e750,000
Resona Bank EMTN 3.75% 15/4/2015 1,614,136 Sumitomo Mitsui Banking 4.375% 27/10/2014 787,631 ____________ 2,401,767 ____________
e2,010,000 e6,429,000 e3,408,000 e4,940,000 £1,080,000
88
British Sky Broadcasting Group 6.875% 23/2/2009 1,276,747 British Telecommunications 6.375% 15/2/2006 2,839,389 Credit Suisse First Boston (London) 7.9% 1/5/2007 (Perpetual) 1,619,782 MBNA Europe Funding EMTN 6% 12/11/2010 865,292 mmO2 EMTN 6.375% 25/1/2007 1,059,810 UK Treasury 5% 7/9/2014 18,439,641 ____________ 26,100,661 ____________
0.55 0.27 ______ 0.82 ______
US$3,200,000 US$520,000 US$1,260,000 US$7,135,000 US$830,000 US$10,096,000 US$7,300,000 US$16,080,000 US$9,170,000 US$2,120,000 US$2,165,000 US$2,090,000 US$835,000 US$2,755,000 US$5,401,000 US$3,585,000 US$30,000,000 US$32,000,000 US$1,600,000 US$1,460,000
ABN Amro Bank (Chicago) 7.3% 1/12/2026 ASIF Global Financing XVIII 3.85% 26/11/2007 Raytheon 6.75% 15/8/2007 Socgen Real Estate ‘144A’ 7.64% 30/9/2007 (Perpetual) US Treasury 1.875% 30/11/2005* US Treasury 3.125% 31/1/2007 US Treasury 3.125% 15/4/2009* US Treasury 3.375% 15/2/2008 US Treasury 3.5% 15/2/2010 US Treasury 4.125% 15/5/2015* US Treasury 5.375% 15/2/2031 US Treasury 5.625% 15/5/2008 US Treasury 6.125% 15/8/2029 US Treasury 6.25% 15/5/2030 US Treasury 6.5% 15/2/2010 US Treasury 8% 15/11/2021 US Treasury 9.125% 15/5/2018 US Treasury Bill 0% 7/7/2005 US Treasury Bill 0% 18/8/2005* Washington Mutual 4.375% 15/1/2008 Yum! Brands 7.65% 15/5/2008
Total Portfolio
Netherlands
Other Net Assets
Deutsche Telekom International Finance 7.5% 29/5/2007 2,201,764 Dutch Government 3.75% 15/7/2009 6,767,615 Dutch Government 3.75% 15/7/2014 3,585,032 Dutch Government 4% 15/7/2005 4,942,470 ICI Investments (Netherlands) EMTN 7.625% 21/8/2007 1,693,667 ____________
Total Net Assets (e)
19,190,548 ____________ (*)
%
0.43 0.97 0.55 0.30 0.36 6.26 ______ 8.87 ______
USA
France e18,802,000
Value (e)
United Kingdom Austria
e10,850,000
Description
Securities lent, see note 12 for further details.
Merrill Lynch International Investment Funds
0.75 2.30 1.22 1.68 0.57 ______ 6.52 ______
2,203,760
0.75
2,633,842 453,153
0.89 0.15
1,118,438 5,884,463 683,236 8,198,591 6,014,393 13,186,140 7,691,744 2,065,229 1,891,608 2,202,590 897,460 2,551,177 6,438,145 4,431,512 24,870,663 26,438,395
0.38 2.00 0.23 2.78 2.04 4.48 2.61 0.70 0.64 0.75 0.31 0.87 2.19 1.51 8.45 8.98
1,332,900 1,315,732 ____________ 122,503,171 ____________
0.45 0.45 ______ 41.61 ______
293,666,637
99.75
747,846 ____________ 294,414,483 ____________
0.25 ______ 100.00 ______
Global Bond Fund (Euro)
continued
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases A$29,692,000 e17,680,863 C$7,580,000 e7,338,729 CHF103,657,000 e56,320,087 £27,890,000 e42,035,731 ¥5,039,682 e37,063,801 US$285,714,250 e326,891,553
Sales e18,597,648 A$29,713,000 e4,718,261 C$11,770,000 e67,365,398 CHF86,787,000 e41,370,436 £28,681,000 e37,399,060 ¥4,982,694 e225,565,006 US$417,073,496
Value date 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005
Open Futures Contracts as at 30 June 2005 Unrealised profit/(loss) e 106,033 (1,036,047) 380,851 (579,022) (419,353) 269,397 89,383 (599,947) 389,090 (297,046) 11,358,782 (18,959,705) __________
Net unrealised loss
Number of Contracts 188 29 64 (20) (126) (291) (2)
Issuer Eurex Euro Bund Eurex Schatz Japanese Government Bond (TSE) LIFFE Long Gilt US 5 Year Treasury Note US 10 Year Treasury Note US 30 Year Treasury Bond
Total commitment
Expiration date September 2005 September 2005 September 2005 September 2005 September 2005 September 2005 September 2005
Value e 23,195,440 3,100,680 67,725,934 (3,391,938) (11,383,673) (27,384,587) (196,479) __________ 51,665,377 __________
Note: The net unrealised profit of e180,861 attributed to these transactions is included in Other Net Assets (see Note 2c).
(9,297,584) __________
Note: The net unrealised loss attributed to these transactions is included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
89
Global Bond Fund (US Dollar) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS US$550,000
Austria e4,677,000
Republic of Austria ‘2’ 4.65% 15/1/2018
6,387,446 ____________
4.09 ______
Canadian Government ‘WL43’ 5.75% 1/6/2029
1,570,888 ____________
1.00 ______
CAM International EMTN 5.75% 3/4/2012
£310,000 e500,000 £4,300,000
Cayman Islands e550,000
e550,000 US$760,000
Canada C$1,592,000
701,520 ____________
e4,419,000
Government of France 3.5% 12/1/2009 Government of France 4.5% 12/7/2006
7,505,891
4.80 US$2,000,000
5,464,217 ____________ 12,970,108 ____________
3.50 ______ 8.30 ______
4,826,522 8,608,694 2,717,015 2,601,876 4,004,703 4,553,133 10,539,105 5,610,452 1,195,682
3.09 5.51 1.74 1.66 2.56 2.91 6.74 3.59 0.76
629,109 ____________ 45,286,291 ____________
0.40 ______ 28.96 ______
Resona Bank EMTN 3.75% 15/4/2015 790,528 Sumitomo Mitsui Banking 4.375% 27/10/2014 379,810 ____________
0.51
Germany 2.5% 16/9/2005 Germany ‘00’ 5.25% 4/1/2011 Germany ‘02’ 5% 4/7/2012 Germany ‘03’ 4.75% 4/7/2034 Germany ‘04’ 3.75% 4/1/2015 Germany ‘05’ 4% 4/1/2037 Germany ‘139’ 4% 16/2/2007 Germany ‘143’ 3.5% 10/10/2008 Germany ‘144’ 3.25% 17/4/2009 ThyssenKrupp EMTN 4.375% 18/3/2015
Japan e650,000 e300,000
Value (US$)
%
592,018
0.38
679,659
0.43
802,235
0.51
587,928 638,825 8,191,242 ____________
0.38 0.41 5.24 ______
11,491,907 ____________
7.35 ______
1,023,457
0.65
1,984,600 220,630
1.27 0.14
554,337 4,118,378 5,448,266 2,428,573 5,620,376 5,400,078 1,468,066 1,300,899 1,156,198 2,185,923 3,348,465 2,265,216 11,993,627 10,968,664 4,970,493
0.35 2.63 3.49 1.55 3.60 3.45 0.94 0.83 0.74 1.40 2.14 1.45 7.67 7.02 3.18
1,004,340 651,882 ____________ 68,112,468 ____________
0.64 0.42 ______ 43.56 ______
151,815,304
97.10
4,534,627 ____________ 156,349,931 ____________
2.90 ______ 100.00 ______
USA US$990,000
US$210,000 US$518,000
Germany e4,000,000 e6,297,000 e1,983,000 e1,814,000 e3,155,000 e3,561,000 e8,473,000 e4,476,000 e960,000 e520,000
British Sky Broadcasting 6.875% 23/2/2009 British Telecommunications 6.375% 15/2/2006 Credit Suisse First Boston (London) 7.9% 1/5/2007 (Perpetual) MBNA Europe Funding EMTN 6% 12/11/2010 mmO2 EMTN 6.375% 25/1/2007 UK Treasury 5% 7/9/2014
0.45 ______
France e5,980,000
Description United Kingdom
1,170,338 ____________
0.24 ______ 0.75 ______
US$4,142,000 US$5,565,000 US$2,445,000 US$5,685,000 US$5,340,000 US$1,250,000 US$1,235,000 US$910,000 US$1,958,000 US$2,330,000 US$1,520,000 US$12,000,000 US$11,000,000 US$5,000,000 US$1,000,000 US$600,000
ABN Amro Bank (Chicago) 7.3% 1/12/2026 ASIF Global Financing XVlll 3.85% 26/11/2007 Raytheon 6.75% 15/8/2007 Socgen Real Estate ‘144A’ 7.64% 30/9/2007 (Perpetual) US Treasury 1.875% 30/11/2005* US Treasury 3.125% 15/4/2009* US Treasury 3.375% 15/2/2008 US Treasury 3.5% 15/2/2010 US Treasury 4.125% 15/5/2015* US Treasury 5.375% 15/2/2031 US Treasury 5.625% 15/5/2008 US Treasury 6.125% 15/8/2029 US Treasury 6.5% 15/2/2010 US Treasury 8% 15/11/2021 US Treasury 9.125% 15/5/2018 US Treasury Bill 0% 7/7/2005 US Treasury Bill 0% 4/8/2005* US Treasury Bill 0% 8/9/2005 Washington Mutual 4.375% 15/1/2008 Yum! Brands 7.65% 15/5/2008
Total Portfolio
Netherlands e590,000 e1,772,000 £580,000
Deutsche Telekom International Finance 7.5% 29/5/2007 779,131 Dutch Government 3.75% 15/7/2009 2,248,742 ICI Investments Netherlands EMTN 7.625% 21/8/2007 1,096,465 ____________ 4,124,338 ____________
(*)
90
Securities lent, see note 12 for further details.
Merrill Lynch International Investment Funds
Other Net Assets 0.50 1.44 0.70 ______ 2.64 ______
Total Net Assets (US$)
Global Bond Fund (US Dollar)
continued
Open Futures Contracts as at 30 June 2005 Number of Contracts 95 11 28 (54) (153)
Issuer Eurex Euro Bund Eurex Schatz Japanese Government Bond (TSE) US Treasury 5 Year Note US Treasury 10 Year Note
Expiration date September 2005 September 2005 September 2005 September 2005 September 2005
Value US$ 14,130,319 1,417,866 35,721,062 (5,881,781) (17,358,327) __________
Total commitment
28,029,139 __________
Note: The net unrealised profit of US$132,164 attributed to these transactions is included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
91
Global Equity Diversified Fund(1) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
COMMON / PREFERRED STOCKS (SHARES) Bermuda 24,700 210,610
Endurance Specialty Holdings Tyco International
928,720 6,175,084 ____________ 7,103,804 ____________
0.32 2.15 ______
1,659,852 ____________
0.58 ______
885,514 1,743,684 2,208,766 2,457,888 2,667,765 1,606,821 ____________
0.31 0.60 0.77 0.85 0.93 0.56 ______
11,570,438 ____________
4.02 ______
2,157,895 ____________
0.75 ______
1,683,684 ____________
0.59 ______
513,545 1,037,483 779,857 ____________
0.18 0.36 0.27 ______
2,330,885 ____________
0.81 ______
2.47 ______
Brazil 65,400
Cia Vale do Rio Doce ADR
Canada 198,500 37,200 33,900 70,670 70,400 47,000
Abitibi-Consolidated Niko Resources Petro-Canada Shoppers Drug Mart Talisman Energy Teck Cominco ‘B’
Cayman Islands 47,900
ACE
Denmark 33,200
Novo-Nordisk ‘B’
Finland 18,497 17,435 60,970
Cargotec ‘B’ Kone ‘B’ Stora Enso ‘R’
France 121,490 54,900 24,716 23,598
AXA BNP Paribas* Sanofi-Aventis Total
3,061,050 3,772,513 2,029,125 5,570,209 ____________
1.06 1.31 0.70 1.94 ______
14,432,897 ____________
5.01 ______
Germany 30,500 14,235
E.ON Fresenius Medical Care*
2,720,916 1,209,846 ____________
0.95 0.42 ______
3,930,762 ____________
1.37 ______
Guernsey 131,050
Amdocs
Allied Irish Banks
3,504,277 ____________
Enel ENI Fastweb
0.50 0.28 0.51 ______
3,712,441 ____________
1.29 ______
569,074 955,549 845,972 747,101
0.20 0.33 0.29 0.26
Japan 51,000 80,000 41,800 129,000 (1)
92
Ajinomoto Asahi Breweries Bandai* Bank of Yokohama
Fund name changed, see note 17, for further details.
Merrill Lynch International Investment Funds
%
2,163,358 1,027,965 771,098 689,557 781,425 583,521 269,245 2,440,075 806,380 1,135,898 820,891 863,030 773,800 571,306 1,421,726 624,911 214,181 1,436,577 413,355 196,558 544,462 626,176 958,169 2,611,281 536,457 ____________
0.75 0.36 0.27 0.24 0.27 0.20 0.09 0.85 0.28 0.39 0.29 0.30 0.27 0.20 0.49 0.22 0.07 0.50 0.14 0.07 0.19 0.22 0.33 0.91 0.19 ______
26,399,098 ____________
9.17 ______
1,058,511 ____________
0.37 ______
3,153,124 3,031,234 1,452,960 1,879,980 ____________
1.10 1.05 0.51 0.65 ______
9,517,298 ____________
3.31 ______
2,216,714 2,698,069 ____________ 4,914,783 ____________
0.77 0.94 ______ 1.71 ______
2,109,402 ____________
0.73 ______
1,434,192 ____________
0.50 ______
1,767,476 708,944 939,658 2,880,399 1,618,929 906,403 1,404,110 686,775 2,480,363 4,084,768 ____________
0.61 0.25 0.33 1.00 0.56 0.31 0.49 0.24 0.86 1.42 ______
17,477,825 ____________
6.07 ______
SES Global FDR
ABN AMRO Holding ING Groep Royal Numico TNT
Norway 212,400 132,650
DNB NOR Statoil
Spain Telefonica
Sweden
0.82 ______
1,427,636 803,055 1,481,750 ____________
Value (US$)
Netherlands 128,086 107,270 36,500 74,330
140,160 2,364,600 ____________
Description Canon COMSYS Holdings Denso FamilyMart Funai Electric JSR Millea Holdings Mitsubishi Tokyo Financial Group Mitsui & Co Nissan Motor NTT DoCoMo Obayashi Onward Kashiyama ORIX Ricoh Secom Sumisho Computer Systems Sumitomo Mitsui Financial Group Takefuji THK TIS Tokyo Gas Toyota Industries Toyota Motor Yokohama Rubber
Luxembourg 71,443
1.22 ______
Italy 164,020 31,318 34,400
41,000 111,000 33,800 24,000 7,600 27,600 20 287 85,000 114,500 554 160,000 61,000 3,800 90,800 14,500 9,100 212 6,100 9,500 15,900 167,000 35,000 72,800 125,000
128,658
Ireland 109,700
Holding
SKF ‘B’
Switzerland 44,790 11,618 4,630 60,519 12,800 2,533 2,200 3,244 40,390 52,220
Credit Suisse Group Holcim Nobel Biocare Holding Novartis Roche Holding (Pref) Schindler Holding Serono ‘B’ Straumann Holding Swiss Reinsurance* UBS
Global Equity Diversified Fund(1)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Taiwan 1,026,000 174,100 1,707,000
Chunghwa Telecom Compal Electronics GDR Far EasTone Telecommunications
2,083,473 863,536 2,186,724 ____________
0.72 0.30 0.76 ______
5,133,733 ____________
1.78 ______
1,516,633 3,068,219 480,757 383,333 1,122,090 2,824,129 1,348,213 1,153,745 1,048,124 2,357,415 2,018,616 1,752,199 610,677 2,547,213 2,081,679 2,954,629 2,917,966 4,160,840 2,155,146 1,060,030 1,341,865 ____________
0.53 1.07 0.17 0.13 0.39 0.98 0.47 0.40 0.36 0.82 0.70 0.61 0.21 0.88 0.72 1.03 1.01 1.45 0.75 0.37 0.47 ______
38,903,518 ____________
13.52 ______
United Kingdom 36,600 306,932 37,710 23,390 106,699 145,700 142,540 121,290 41,281 159,700 82,900 65,060 70,732 260,657 231,727 100,170 303,610 136,500 131,000 426,844 139,100
AstraZeneca Barclays Barratt Developments Berkeley Group Holdings BP British American Tobacco British Sky Broadcasting Cadbury Schweppes Cobham Diageo GlaxoSmithKline Imperial Tobacco Group Johnston Press National Grid Prudential Reckitt Benckiser Reed Elsevier Royal Bank of Scotland Group Smiths Group Vodafone Group William Hill
Holding
Description
Value (US$)
%
Lilly (Eli) & Co Lowe’s Maxim Integrated Products MBNA McGraw-Hill Medtronic Microsoft Morgan Stanley* Nextel Communications ‘A’ North Fork Bancorporation Omnicom Group Pall PanAmSat Holding PepsiCo Pfizer Phelps Dodge PNC Financial Services Group Praxair Ross Stores Smith International Sprint (FON Group) St Paul Travelers United Technologies Valero Energy Valspar Viacom ‘B’ Wachovia WellPoint
2,034,396 2,228,084 3,092,622 3,500,923 2,923,373 805,589 6,274,664 2,983,734 1,775,065 2,146,892 975,929 727,827 2,170,135 2,214,619 2,948,277 692,916 2,638,146 4,518,568 1,488,740 1,614,816 856,653 2,289,708 2,928,333 1,439,802 848,496 2,461,049 3,737,316 1,020,960 ____________
0.71 0.77 1.07 1.22 1.02 0.28 2.18 1.04 0.62 0.75 0.34 0.25 0.75 0.77 1.02 0.24 0.92 1.57 0.52 0.56 0.30 0.80 1.02 0.50 0.29 0.86 1.30 0.35 ______
121,620,350 ____________ 283,020,245 ____________
42.25 ______ 98.34 ______
484,432 533,424 2,189,393 ____________
0.17 0.18 0.76 ______
3,207,249 ____________
1.11 ______
Total Funds
335,211 ____________ 3,542,460 ____________
0.12 ______ 1.23 ______
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
286,562,705 ____________
99.57 ______
24 ____________ 24 ____________
0.00 ______ 0.00 ______
286,562,729
99.57
1,244,653 ____________ 287,807,382 ____________
0.43 ______ 100.00 ______
36,400 37,809 80,600 132,310 66,050 15,510 250,186 55,980 54,500 76,050 12,149 23,700 105,500 40,830 106,436 7,300 48,300 95,228 50,500 25,200 33,900 57,300 56,206 18,200 17,600 75,446 73,860 14,400
Total Common / Preferred Stocks (Shares)
USA 19,373 22,600 94,300 28,346 64,200 21,800 100,500 39,000 93,040 42,793 54,200 16,896 74,801 25,460 24,400 37,113 43,703 39,800 54,980 31,400 31,620 29,830 36,100 48,030 81,676 26,030 14,100 66,800 45,570 (*)
Abbott Laboratories AGCO Alcoa Altria Group American International Group Apache Bank of New York Caremark Rx Cisco Systems Clear Channel Communications ConocoPhillips Countrywide Financial Dell DR Horton EOG Resources Estee Lauder ‘A’ Exxon Mobil Fannie Mae First Data First Horizon National Gannett Grainger (WW) Guidant IBM International Game Technology* ITT Industries Kinetic Concepts Lam Research Lexmark International ‘A’
949,471 442,056 2,471,603 1,853,828 3,760,836 1,421,796 2,944,650 1,735,110 1,804,976 1,327,867 3,146,852 654,213 2,974,088 958,569 1,383,236 1,441,469 2,545,700 2,329,494 2,200,300 1,345,804 2,270,316 1,641,247 2,456,605 3,601,770 2,288,562 2,550,940 852,345 1,950,560 2,978,455
0.33 0.15 0.86 0.64 1.31 0.49 1.02 0.60 0.63 0.46 1.09 0.23 1.03 0.33 0.48 0.50 0.88 0.81 0.76 0.47 0.79 0.57 0.85 1.25 0.80 0.89 0.30 0.68 1.03
FUNDS Ireland 52,270 13,780 182,150
iShares - IFTSE 100 Fund EETF - iShares DJ Euro STOXX 50 iShares S&P 500 Index Fund
Japan 7,780
UBS-EFT DJ Japan Titans 100
Unquoted Securities COMMON STOCKS (SHARES) USA 24,000
World Access (Restricted)
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (US$)
Securities lent, see note 12 for further details.
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
93
Global Equity Diversified Fund(1) Sector Breakdown as at 30 June 2005
Finance Consumer discretionary Capital goods Information technology Healthcare Energy Consumer staples Telecommunication services Materials Utilities Other net assets
% of net assets 26.4 11.6 11.5 11.2 10.0 9.9 7.1 5.1 4.3 2.5 0.4 ____________ 100.0 ____________
94
Merrill Lynch International Investment Funds
continued
Global Focus Fund(2) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) 14,000
Bermuda 2,830
Tyco International
82,975 ____________
2.72 ______
Niko Resources Petro-Canada Shoppers Drug Mart Talisman Energy Teck Cominco ‘B’
28,124 39,093 62,604 41,684 12,308 ____________
0.92 1.28 2.05 1.37 0.40 ______
183,813 ____________
6.02 ______
40,545 ____________
1.33 ______
MobileOne
SKF ‘B’
ACE
Denmark 900
Novo-Nordisk ‘B’
45,642 ____________
1.49 ______
30,235 61,844 44,849 ____________
0.99 2.03 1.47 ______
136,928 ____________
4.49 ______
30,027 ____________
0.98 ______
56,154 ____________
1.84 ______
25,852 ____________
0.85 ______
22,456 ____________
0.74 ______
16,722 46,305 20,532 25,506 25,793 25,371 46,973 46,630 ____________
0.55 1.52 0.67 0.83 0.84 0.83 1.54 1.53 ______
253,832 ____________
8.31 ______
23,706 ____________
0.78 ______
40,126 12,140 ____________ 52,266 ____________
1.31 0.40 ______ 1.71 ______
30,162 42,713 ____________ 72,875 ____________
0.99 1.40 ______ 2.39 ______
France 1,200 900 190
AXA BNP Paribas Total
Germany 270
Fresenius
Amdocs
Ireland 1,200
Allied Irish Banks
Italy 2,580
Enel
Japan 1,400 5,000 900 3 2,600 2,000 3,000 1,300
Asahi Breweries COMSYS Holdings Denso Mitsubishi Tokyo Financial Group Nissan Motor Onward Kashiyama Ricoh Toyota Motor
Luxembourg 1,600
SES Global FDR
Netherlands 1,008 480
Royal Numico TNT
Norway 2,890 2,100
(2)
DNB NOR Statoil
18,111 ____________
0.59 ______
15,349 ____________
0.50 ______
Nobel Biocare Holding Serono ‘B’ Straumann Holding Swiss Reinsurance UBS
20,295 33,188 21,171 36,846 30,507 ____________
0.66 1.09 0.69 1.21 1.00 ______
142,007 ____________
4.65 ______
83,929 22,142 31,655 33,128 11,862 28,747 58,992 23,066 66,146 14,806 19,294 ____________
2.75 0.73 1.04 1.08 0.39 0.94 1.93 0.76 2.17 0.48 0.63 ______
393,767 ____________
12.90 ______
34,307 23,065 85,526 15,001 41,020 40,931 60,382 31,808 52,710 39,123 42,724 30,436 36,018 27,430 31,836 28,720 35,386 64,491 33,624 49,000 9,672 35,040 39,216 30,696 79,380 61,964 72,732 18,048 26,056 30,855
1.12 0.76 2.80 0.49 1.34 1.34 1.98 1.04 1.73 1.28 1.40 1.00 1.18 0.90 1.04 0.94 1.16 2.11 1.10 1.61 0.32 1.15 1.28 1.01 2.60 2.03 2.38 0.59 0.85 1.01
United Kingdom 4,330 1,500 1,300 3,390 360 3,200 2,000 2,400 2,170 900 2,000
Guernsey 2,100
%
Switzerland 100 52 100 600 390
Cayman Islands 900
Value (US$)
Sweden 1,500
Canada 600 600 1,800 1,100 360
Description Singapore
British American Tobacco Diageo GlaxoSmithKline National Grid NDS Group ADR Prudential Reckitt Benckiser Reed Elsevier Royal Bank of Scotland Group Smiths Group William Hill
USA 700 880 1,460 230 1,400 920 1,040 800 1,400 700 1,100 520 900 640 1,200 400 520 860 1,200 500 160 1,200 600 800 3,000 1,400 2,900 400 800 1,500
Abbott Laboratories Alcoa American International Group Apache Bank of New York Caremark Rx ConocoPhillips Dell DR Horton Lilly (Eli) & Co Estee Lauder ‘A’ Fannie Mae First Data First Horizon National Foundation Coal Holdings Gannett Guidant IBM International Game Technology ITT Industries Kinetic Concepts Lam Research Lexmark International ‘A’ Maxim Integrated Products MBNA McGraw-Hill Microsoft Moody’s Nextel Communications ‘A’ PanAmSat Holding
New Fund launched, see note 16, for further details.
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
95
Global Focus Fund(2)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 80 400 1,000 900 400 370 300
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Holding
7,594 21,848 47,450 22,743 20,840 29,271 14,463
0.25 0.72 1.55 0.75 0.68 0.96 0.47
1,300 800
Phelps Dodge PNC Financial Services Group Praxair Sprint (FON Group) United Technologies Valero Energy Valspar
Description
Value (US$)
%
Viacom ‘B’ Wachovia
42,406 40,480 ____________
1.39 1.33 ______
1,454,292 ____________ 3,050,597
47.64 ______ 99.93
2,210 ____________ 3,052,807 ____________
0.07 ______ 100.00 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
Sector Breakdown as at 30 June 2005
Finance Consumer discretionary Information technology Healthcare Energy Capital goods Consumer staples Materials Telecommunication services Utilities Other net assets
% of net assets 23.1 14.6 12.7 11.2 9.9 9.7 9.3 4.5 3.2 1.7 0.1 ____________ 100.0 ____________
96
Merrill Lynch International Investment Funds
Global Fundamental Value Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Australia 87,496 380,000
Australia & New Zealand Banking Group 1,446,957 PaperlinX 869,678 ____________ 2,316,635 ____________
0.45 0.27 ______
AGFA-Gevaert Belgacom
Tyco International
Value (US$)
%
Tokyo Gas Toyota Motor Yamaha
2,062,255 2,227,480 1,617,775 ____________
0.64 0.69 0.50 ______
30,121,477 ____________
9.39 ______
2,227,611 ____________
0.69 ______
2,080,624 2,317,696 1,798,310 2,917,696 1,544,401 ____________
0.65 0.72 0.56 0.91 0.48 ______
10,658,727 ____________
3.32 ______
3,403,919 2,529,502 ____________ 5,933,421 ____________
1.06 0.79 ______ 1.85 ______
2,214,406 ____________
0.69 ______
1,794,446 ____________
0.56 ______
2,373,335 ____________
0.74 ______
3,358,342 ____________
1.05 ______
1,473,866 ____________
0.46 ______
1,541,631 3,023,050 ____________ 4,564,681 ____________
0.48 0.94 ______ 1.42 ______
2,585,654 2,381,774 3,364,565 2,133,825 1,521,389 1,756,928 3,074,481 4,697,446 4,487,792 1,900,886 2,714,815 4,664,438 1,762,169 2,137,745 ____________
0.81 0.74 1.05 0.66 0.47 0.55 0.96 1.46 1.40 0.59 0.85 1.45 0.55 0.67 ______
39,183,907 ____________
12.21 ______
Luxembourg 113,781
1,188,558 2,326,135 ____________ 3,514,693 ____________
0.37 0.73 ______ 1.10 ______
7,157,012 ____________
2.23 ______
Bermuda 244,100
Description
550,000 62,100 103,500
0.72 ______
Belgium 43,147 68,037
Holding
Arcelor
Netherlands 160,846 234,741 63,639 355,916 61,062
Aegon Buhrmann ING Groep Koninklijke Ahold TNT
Denmark 78,698
Danske Bank (Bearer)
2,358,343 ____________
0.74 ______
Finland 150,460
Fortum
2,385,231 ____________
0.74 ______
2,906,828 2,822,730 2,011,713 4,904,796 ____________
0.91 0.88 0.63 1.52 ______
12,646,067 ____________
3.94 ______
Norway 167,353 317,749
France 42,302 58,043 34,167 20,779
BNP Paribas Carrefour Peugeot Total
Deutsche Post Deutsche Postbank E.ON RWE
Portugal 887,367
EDP – Energias de Portugal
Singapore 800,000
Neptune Orient Lines
South Korea
Germany 114,310 47,433 20,539 55,383
Statoil Telenor
2,655,520 2,295,883 1,832,291 3,582,035 ____________
0.83 0.72 0.57 1.11 ______
10,365,729 ____________
3.23 ______
809,192 ____________
0.25 ______
2,328,181 279,104 2,777,383 1,753,222 3,073,273 ____________
0.73 0.09 0.86 0.55 0.95 ______
10,211,163 ____________
3.18 ______
2,970,564 780,865 869,174 1,307,068 1,536,495 4,293,512 1,288,235 1,398,792 2,613,810 1,863,610 2,703,294 2,588,548
0.93 0.24 0.27 0.41 0.48 1.35 0.40 0.44 0.81 0.58 0.84 0.81
110,645
KT ADR
Spain 131,776
Repsol
Sweden 108,197
Investor ‘B’
Hungary 9,667
Mol Magyar Olaj- es Gazipari
Italy 414,204 32,066 108,314 64,953 580,041
Capitalia Enel ENI* Fondiaria-Sai UniCredito Italiano*
Japan 248,700 15,800 65 282 173,000 505 96,600 141,000 1,764 184,000 54,400 38,200
Asahi Breweries Honda Motor Japan Tobacco KDDI Mitsubishi Securities Mitsubishi Tokyo Financial Group Namco Nissan Motor NTT DoCoMo Sekisui House Takeda Pharmaceutical Takefuji
Switzerland 115,492 49,541
Clariant Holcim
United Kingdom 62,200 213,384 651,534 213,459 140,013 184,701 126,262 96,200 290,859 380,655 302,206 153,021 107,113 860,809
AstraZeneca ADR BAA BAE Systems Barclays Boots Group Cadbury Schweppes GlaxoSmithKline GlaxoSmithKline ADR HBOS Kesa Electricals Prudential Royal Bank of Scotland Group Smiths Group Vodafone Group
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
97
Global Fundamental Value Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
USA 333,000 391,190 117,000 146,300 234,000 589,700 155,200 670,520 84,100 123,500 425,200 90,252 33,700 201,300 92,700 222,800 147,200 46,600 232,000 323,700 179,520 (*)
3Com Agere Systems ‘B’ American International Group Applied Materials Bank of New York BEA Systems BellSouth Borland Software Citigroup Coca-Cola Enterprises Extreme Networks Exxon Mobil Fannie Mae Foot Locker Freeport-McMoRan Copper & Gold ‘B’ Gap GlobalSantaFe Goodrich International Paper Interpublic Group of Companies JPMorgan Chase & Co
1,205,460 4,788,166 6,853,860 2,386,153 6,856,200 5,230,639 4,129,872 4,599,767 3,940,085 2,758,990 1,747,572 5,257,179 1,972,461 5,517,633 3,528,162 4,469,368 5,989,568 1,946,948 7,201,280 3,926,481 6,437,587
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Finance Information technology Consumer discretionary Energy Industrials Telecommunication services Materials Consumer staples Healthcare Utilities Other net assets
% of net assets 26.9 12.8 12.6 11.2 10.9 6.3 6.1 5.8 4.1 3.1 0.2 ____________ 100.0 ____________
98
Merrill Lynch International Investment Funds
0.38 1.49 2.14 0.74 2.14 1.63 1.29 1.43 1.23 0.86 0.54 1.64 0.61 1.72 1.10 1.39 1.87 0.61 2.24 1.22 2.01
Holding
Description
Value (US$)
%
679,600 1,289,500 66,500 104,700 80,100 242,600 90,000 103,500 233,800 116,000 184,800 378,000 306,200 264,500 648,900
Liberty Media ‘A’ 6,945,512 LSI Logic 11,231,545 Macquarie Infrastructure Company Trust 1,889,930 Mellon Financial 3,008,031 Morgan Stanley* 4,269,330 Motorola 4,514,786 Norfolk Southern 2,827,800 Raytheon* 4,076,865 Rowan 7,030,366 Sprint (FON Group) 2,931,320 St Paul Travelers 7,384,608 Time Warner 6,335,280 Topps 3,062,000 UAP Holding 4,313,995 Unisys 4,081,581 ____________ 164,646,380 ____________
2.16 3.51 0.59 0.94 1.33 1.41 0.88 1.27 2.19 0.91 2.31 1.97 0.95 1.34 1.27 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
320,314,664
51.31 ______ 99.82
573,402 ____________ 320,888,066 ____________
0.18 ______ 100.00 ______
Global High Yield Bond Fund (Euro) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
COMMON STOCKS (SHARES) United Kingdom 35,573
Telewest Global
Total Common Stocks (Shares)
668,026 ____________ 668,026 ____________
0.49 ______ 0.49 ______
Belgium Telenet Communications 9% 15/12/2013
1,049,875 ____________
0.77 ______
Bermuda e500,000 e200,000 US$500,000
e480,000
US$500,000 US$750,000 e1,100,000 US$1,250,000 US$875,000 US$400,000 US$250,000 US$750,000 US$250,000 US$1,500,000 C$250,000 US$250,000 US$250,000 US$250,000 US$500,000
Central European Media Enterprises 8.25% 15/5/2012 537,500 Central European Media Enterprises FRN 15/5/2012 207,620 Intelsat Bermuda ‘144A’ 8.625% 15/1/2015 438,578 ____________ 1,183,698 ____________
e735,000 e725,000 e335,000 e375,000 e350,000 e575,000 e615,000
0.39 e250,000
Abitibi-Consolidated 8.375% 1/4/2015 637,649 Abitibi-Consolidated FRN 15/6/2011 413,694 Ainsworth Lumber ‘144A’ 7.24% 1/10/2010 620,542 Bombardier 5.75% 22/2/2008 1,103,850 CanWest Media 8% 15/9/2012 1,096,446 Corus Entertainment 8.75% 1/3/2012 782,935 Intrawest 7.5% 15/10/2013 342,153 Norampac 6.75% 1/6/2013 208,402 Norske Skog Canada ‘D’ 8.625% 15/6/2011 645,426 PCI Chemicals Canada 10% 31/12/2008 220,844 Quebecor Media 0/13.75% 15/7/2011 (step-up coupon) 1,258,191 Rogers Wireless Communications 7.625% 15/12/2011 180,386 Rogers Wireless Communications 8% 15/12/2012 223,955 Rogers Wireless Communications FRN 15/12/2010 217,215 Stone Container Finance 7.375% 15/7/2014 195,442 Tembec Industries 8.625% 30/6/2009 ____________ 335,932
Cognis 9.5% 15/5/2014 801,150 Flender Holdings 11% 1/8/2010 882,687 Gildemeister 9.75% 19/7/2011 370,175 Grohe Holding 8.625% 1/10/2014 348,750 Kamps 8% 26/9/2005 355,250 Kloeckner Investment 10.5% 15/5/2015 579,636 MTU Aero Engines Investment & Co 8.25% 1/4/2014 704,175 Tele Columbus & Co FRN 15/4/2010 ____________ 254,641
0.32 ______ 0.86 ______
0.45 0.81 0.80 0.57 0.25 0.15
853,050 ____________
0.62 ______
Eircom Funding 8.25% 15/8/2013 908,261 JSG Funding 10.125% 1/10/2012 522,500 Riverdeep Group 9.25% 15/4/2011 559,000 Smurfit Capital Funding 6.75% 20/11/2005 1,146,214 Valentia Telecommunications 7.25% 15/8/2013 817,500 ____________ 3,953,475 ____________
0.66 0.38 0.41
Guernsey e750,000
US$1,000,000 e500,000 e520,000 US$1,375,000 e750,000
ABB International Finance EMTN 6.5% 30/11/2011
e425,000
0.16
£500,000
0.92
e1,125,000 e500,000 e435,000 e180,000 e450,000
0.13 0.16 0.16
8,483,062 ____________
1,156,450 ____________
0.84 ______
ISS Global EMTN 4.75% 18/9/2010 ____________ 1,061,820
0.78 ______
Alcatel EMTN 6.375% 7/4/2014 Crown European Holdings 10.25% 1/3/2011
0.84 0.60 ______ 2.89 ______
Luxembourg 0.47
0.14 0.25 ______ 6.19 ______
Oskar Mobil 7.5% 15/10/2011
0.59 0.64 0.27 0.26 0.26 0.42
Ireland 0.47 0.30
France e350,000 e925,000
0.50 0.34 ______ 1.90 ______
4,296,464 ____________
0.15
Denmark e1,200,000
%
0.51 0.19 ______ 3.14 ______
e300,000 e800,000 e575,000
Cablecom Luxembourg 9.375% 15/4/2014 478,125 Fiat Finance & Trade EMTN 7% 19/10/2005 751,153 GAL Finance EMTN 11.5% 30/11/2009 1,215,000 Ispat Europe Group 11.875% 1/2/2011 558,750 IT Holding Finance 9.875% 15/11/2012 403,463 Kloeckner Pentaplast 9.375% 15/2/2012 193,500 LBC Luxembourg Holdings 11% 15/5/2014 488,812 Lighthouse International 8% 30/4/2014 309,750 Safilo Capital International 9.625% 15/5/2013 870,000 Teksid Aluminum Luxembourg 11.375% 15/7/2011 481,563 ____________ 5,750,116 ____________
Czech Republic e1,010,000
Value (e)
Crown European Holdings 10.875% 1/3/2013 685,136 Ray Acquisition 9.375% 16/3/2015 ____________ 471,000 2,607,731 ____________
Canada US$750,000
Description
Germany
BONDS e925,000
Holding US$700,000
394,782
0.29
1,056,813
0.77
0.35 0.55 0.89 0.41 0.29 0.14 0.36 0.23 0.63 0.35 ______ 4.20 ______
Netherlands e750,000 e700,000 e750,000 e500,000 e100,000 e600,000 e500,000
Ardagh Glass Finance 8.875% 1/7/2013 ASPropulsion Capital 9.625% 1/10/2013 Carmeuse Lime 10.75% 15/7/2012 Carmeuse Lime FRN 15/7/2007 Flowserve Finance 12.25% 15/8/2010 Fresenius Finance 7.75% 30/4/2009 Heidelberg Cement Finance EMTN 4.75% 9/4/2009
770,625 801,500 866,250 506,393 107,500 639,000
0.56 0.58 0.63 0.37 0.08 0.47
507,500
0.37
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
99
Global High Yield Bond Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding e500,000 e500,000 e330,000 e600,000 e250,000 US$530,000 e850,000 £192,000 US$1,750,000
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
Holding
Impress Group 10.5% 25/5/2007 532,500 Kappa Beheer 10.625% 15/7/2009 517,500 Kappa Beheer 10.625% 15/7/2009 (Reg) 341,550 Kappa Beheer 0/12.5% 15/7/2009 (step-up coupon) 625,875 Mobiltel Finance 5% 19/11/2009 266,700 New Skies Satellites ‘144A’ 9.125% 1/11/2012 438,516 Victoria Acquistion III 7.875% 1/10/2014 777,750 Yell Finance 10.75% 1/8/2011 313,432 Yell Finance 0/13.5% 1/8/2011 (step-up coupon) 1,448,986 ____________
0.39 0.38 0.25
US$250,000 US$600,000
0.46 0.19 0.32 0.57 0.23
US$500,000 US$750,000 US$250,000
9,461,577 ____________
1.06 ______ 6.91 ______
Preem Holdings 10.625% 31/3/2011 ____________ 1,097,500
0.80 ______
Sweden e1,000,000
US$250,000 US$74,000 e325,000
US$750,000 US$1,000,000 US$400,000 US$1,000,000
United Kingdom £600,000 e265,000 £125,000 £500,000 £325,000 e550,000 e710,000 e750,000 e900,000 e520,000 e250,000 e500,000 e750,000 £400,000 £375,000
Ashtead Holdings 12% 1/5/2014 999,554 Brake Bros Finance 11.5% 15/12/2011 296,800 Brake Bros Finance 12% 15/12/2011 203,592 British Airways 8.75% 23/8/2016 816,265 British Airways 10.875% 15/6/2008 542,634 Corus Group 7.5% 1/10/2011 550,000 Eco-Bat Finance 10.125% 31/1/2013 805,850 Ineos Group Holdings 10.5% 1/8/2010 817,500 Ineos Vinyls Finance 9.125% 1/12/2011 922,500 Invensys 9.875% 15/3/2011 516,100 Lucite International Finance ‘A&B’ 10.25% 15/5/2010 263,750 TVN Finance 9.5% 15/12/2013 578,360 United Biscuits Finance 10.625% 15/4/2011 791,250 WRG Acquisitions FRN 15/12/2011 611,334 WRG Acquisitions ‘144A’ FRN 15/12/2011 573,126 ____________ 9,288,615 ____________
0.73 0.22 0.15 0.59 0.40 0.40 0.59 0.60 0.67 0.38
US$500,000 US$1,000,000 US$250,000
0.19 0.42
US$250,000 US$625,000 US$500,000 e320,000 £195,000 US$750,000 US$750,000
0.58 0.45 0.42 ______ 6.79 ______
USA US$500,000 £500,000 e750,000 £350,000 US$1,000,000 US$250,000 US$250,000 US$400,000 US$250,000 US$500,000 US$375,000
100
Advanced Micro Devices 7.75% 1/11/2012 AES 8.375% 1/3/2011 AGCO 6.875% 15/4/2014 Ahold Finance USA EMTN 6.5% 14/3/2017 AirGate PCS FRN 15/10/2011 Alamosa Delaware 0/12% 31/7/2009 (step-up coupon) Alderwoods Group ‘144A’ 7.75% 15/9/2012 ALH Finance/ALH Finance 8.5% 15/1/2013 Allbritton Communications 7.75% 15/12/2012 Allied Waste North America 7.875% 15/4/2013 American Airlines ‘01-2’ 7.8% 1/10/2006
Merrill Lynch International Investment Funds
US$500,000 US$500,000 US$675,000
US$500,000 £450,000
410,066 792,057 783,750
0.30 0.58 0.57
510,189 852,273
0.37 0.62
228,361
0.17
221,104
0.16
305,242
0.22
205,292
0.15
426,136
0.31
295,759
0.22
US$1,000,000 US$10,700 US$500,000 US$100,000 US$775,000 US$350,000 US$500,000 US$140,000 US$229,000 US$439,000 US$340,000
Description
Value (e)
%
American Cellular ‘B’ 10% 1/8/2011 210,995 American Media Operations 8.875% 15/1/2011 474,038 American Tower 7.125% 15/10/2012 219,808 American Tower 9.375% 1/2/2009 64,679 BCP Crystal US Holdings 10.375% 15/6/2014 375,375 Belden & Blake 8.75% 15/7/2012 406,437 Boise Cascade ‘144A’ 6.474% 15/10/2012 631,428 Boise Cascade ‘144A’ 7.125% 15/10/2014 204,774 Bowater FRN 15/3/2010 632,984 Boyd Gaming 7.75% 15/12/2012 889,599 Building Materials Corporation of America 8% 1/12/2008 331,370 Building Materials Corporation of America ‘B’ 7.75% 15/7/2005 827,389 Cablevision Systems ‘B’ 8% 15/4/2012 408,510 CBD Media 8.625% 1/6/2011 856,420 CBD Media Holdings/CDB Holdings Finance 9.25% 15/7/2012 210,217 CCO Holdings/CCO Holdings Capital 8.75% 15/11/2013 407,473 CCO Holdings/CCO Holdings Capital ‘144A’ FRN 15/12/2010 403,326 Centennial Communications/Cellular Operating/Puerto Rico Operations 8.125% 1/2/2014 599,079 Centerpoint Energy 3.75% 15/5/2023 247,543 Chattem 6.33% 1/3/2010 526,190 Chemtura FRN 1/8/2010 466,573 Chesapeake 7% 15/12/2014 308,000 Chesapeake 10.375% 15/11/2011 311,803 Columbus McKinnon NY 8.5% 1/4/2008 609,655 Communications & Power Industries 8% 1/2/2012 628,318 Constellation Brands ‘B’ 8.125% 15/1/2012 445,836 Constellation Brands ‘C’ 8.5% 15/11/2009 716,198 Corrections Corporation of America 7.5% 1/5/2011 868,862 Crown Castle International 6.25% 15/8/2012 434,887 CSC Holdings 7.875% 15/12/2007 430,284 Cypress Semiconductor 1.25% 15/6/2008 89,271 DaVita ‘144A’ 7.25% 15/3/2015 665,333 Del Monte 8.625% 15/12/2012 320,795 Dex Media 8% 15/11/2013 442,207 Dex Media East/Dex Media East Finance 9.875% 15/11/2009 128,608 Dex Media East/Dex Media East Finance 12.125% 15/11/2012 228,174 Dex Media West/Dex Media Finance ‘B’ 9.875% 15/8/2013 416,933 DirecTV Holdings/DirectTV Financing 8.375% 15/3/2013 313,744
0.15 0.35 0.16 0.05 0.27 0.30 0.46 0.15 0.46 0.65 0.24 0.60 0.30 0.63 0.15 0.30 0.29
0.44 0.18 0.38 0.34 0.22 0.23 0.45 0.46 0.33 0.52 0.63 0.32 0.31 0.07 0.49 0.23 0.32 0.09 0.17 0.30 0.23
Global High Yield Bond Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$500,000 US$250,000 US$196,000 US$250,000 US$1,250,000 e340,000 US$1,000,000 US$550,000 US$250,000 US$49,000 US$250,000 US$750,000 US$450,000 US$250,000 US$550,000 US$250,000 US$250,000 US$30,000 US$1,250,000 US$625,000 US$250,000 US$525,000 US$500,000 US$500,000 US$250,000 US$925,000 US$1,000,000 US$750,000 US$200,000 US$250,000 US$750,000 US$250,000 US$600,000 e800,000 US$500,000 £550,000 US$175,000 US$1,000,000 US$250,000 US$500,000 US$500,000 US$250,000 e500,000 US$550,000
Description
Value (e)
Dobson Cellular Systems ‘144A’ 7.96% 1/11/2011 431,321 Dobson Cellular Systems ‘144A’ 8.375% 1/11/2011 217,734 Dole Food 8.875% 15/3/2011 174,361 Dresser 9.375% 15/4/2011 218,771 Edison Mission Energy 10% 15/8/2008 1,161,248 El Paso 7.125% 6/5/2009 353,600 El Paso Production Holding 7.75% 1/6/2013 889,599 Emmis Communications ‘144A’ FRN 15/6/2012 464,758 ERICO International 8.875% 1/3/2012 211,513 ESI Tractebel Acquisition ‘B’ 7.99% 30/12/2011 43,358 Esterline Technologies 7.75% 15/6/2013 219,808 Exco Resources 7.25% 15/1/2011 625,207 Felcor Lodging 9% 1/6/2011 407,318 Fisher Communications 8.625% 15/9/2014 221,104 Freescale Semiconductor FRN 15/7/2009 475,593 Gaylord Entertainment 8% 15/11/2013 219,030 GCI 7.25% 15/2/2014 200,108 General Motors ‘C’ 6.25% 15/7/2033 527,787 Geo Group 8.25% 15/7/2013 1,005,723 Georgia-Pacific 9.375% 1/2/2013 585,808 Global Cash Access/Global Cash Finance 8.75% 15/3/2012 226,029 Goodman Global Holding ‘144A’ 7.875% 15/12/2012 404,985 Goodyear Tire & Rubber 7.857% 15/8/2011 403,326 Graham Packaging ‘144A’ 8.5% 15/10/2012 420,952 Graham Packaging ‘144A’ 9.875% 15/10/2014 208,402 Graphic Packaging International 9.5% 15/8/2013 784,516 Healthsouth 8.5% 1/2/2008 850,199 Hines Nurseries 10.25% 1/10/2011 643,870 Host Marriott ‘I’ 9.5% 15/1/2007 176,883 Houghton Mifflin 0/11.5% 15/10/2013 (step-up coupon) 152,414 Houghton Mifflin 8.25% 1/2/2011 648,536 Houghton Mifflin 9.875% 1/2/2013 222,400 Huntsman International 9.875% 1/3/2009 535,003 Huntsman International 10.125% 1/7/2009 831,000 Innophos ‘144A’ 8.875% 15/8/2014 426,136 Iron Mountain 7.25% 15/4/2014 773,092 ISP Chemico ‘B’ 10.25% 1/7/2011 158,946 IWO Holdings ‘144A’ 0/10.75% 15/1/2015 (step-up coupon) 543,298 IWO Holdings ‘144A’ FRN 15/1/2012 206,329 Jefferson Smurfit 8.25% 1/10/2012 417,842 JLG Industries 8.25% 1/5/2008 436,505 John Q Hammons Hotels/John Q Hammons Hotels Finance III ‘B’ 8.875% 15/5/2012 227,065 Johnsondiversey 9.625% 15/5/2012 490,000 K&F Acquisition 7.75% 15/11/2014 466,469
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market % 0.30 0.16 0.13 0.16 0.85 0.26 0.65 0.34 0.15 0.03 0.16 0.46 0.30 0.16 0.35 0.16 0.15 0.39 0.73 0.43 0.17
Holding e900,000 US$1,000,000 US$750,000 US$250,000 US$500,000 US$1,000,000 US$250,000 US$1,000,000 US$1,000,000 US$250,000 US$250,000 e275,000 US$500,000 US$500,000 e500,000 US$950,000 US$750,000 US$500,000 US$500,000 US$675,000 US$750,000 US$250,000 US$323,000 US$250,000 US$750,000 US$1,025,000
0.30 US$425,000 0.29 0.31
US$617,000 US$250,000 US$500,000
0.15 US$500,000 0.57 0.62 0.47 0.13 0.11 0.47 0.16 0.39 0.61 0.31 0.56 0.12
US$850,000 US$250,000 US$340,000 US$500,000 US$250,000 US$250,000 US$250,000 US$250,000 US$1,000,000 US$500,000 US$250,000 US$750,000
0.40 0.15 0.30 0.32
US$750,000 US$850,000 US$575,000
0.17 0.36 0.34
US$500,000 US$1,000,000
Description
Value (e)
Kronos International 8.875% 30/6/2009 Liberty Media 0.75% 30/3/2023 Loral Cyberstar 10% 15/7/2006 Majestic Star Casino 9.5% 15/10/2010 Mediacom/Mediacom Capital 9.5% 15/1/2013 Millennium America 7% 15/11/2006 Millennium America 9.25% 15/6/2008 Mission Energy Holding 13.5% 15/7/2008 Mobile Mini 9.5% 1/7/2013 MSW Energy Holdings/MSW Energy Finance 8.5% 1/9/2010 MSW Energy Holdings II/MSW Energy Finance II ‘B’ 7.375% 1/9/2010 Nalco 7.75% 15/11/2011 Nalco 7.75% 15/11/2011 Nalco 8.875% 15/11/2013 Nalco 9% 15/11/2013 Nebraska Book 8.625% 15/3/2012 Nevada Power 9% 15/8/2013 Nexstar Finance 7% 15/1/2014 Nextel Partners 8.125% 1/7/2011 Nextmedia Operating 10.75% 1/7/2011 Norcraft/Norcraft Finance 9% 1/11/2011 Nortek 8.5% 1/9/2014 NRG Energy ‘144A’ 8% 15/12/2013 NTL Cable ‘144A’ FRN 10/2012 Omnova Solutions 11.25% 1/6/2010 Owens Brockway Glass Container 8.75% 15/11/2012 Owens Brockway Glass Container 8.875% 15/2/2009 PanAmSat 9% 15/8/2014 Parker Drilling 9.625% 1/10/2013 Paxson Communications 0/12.25% 15/1/2009 (step-up coupon) Pinnacle Entertainment 8.25% 15/3/2012 Plains Exploration & Production ‘B’ 8.75% 1/7/2012 PolyOne 10.625% 15/5/2010 Premcor Refining Group 9.5% 1/2/2013 Primedia 7.625% 1/4/2008 Primedia 8% 15/5/2013 Qwest ‘144A’ 7.625% 15/6/2015 Qwest ‘144A’ FRN 15/6/2013 Rainbow National Services ‘144A’ 8.75% 1/9/2012 Rainbow National Services ‘144A’ 10.375% 1/9/2014 Rural Cellular 8.25% 15/3/2012 Rural Cellular FRN 15/3/2010 Salem Communications 7.75% 15/12/2010 Samsonite 8.875% 1/6/2011 SBA Communications 8.5% 1/12/2012 SBA Telecommunications/SBA Communications 0/9.75% 15/12/2011 (step-up coupon) Sealy Mattress 8.25% 15/6/2014 SEMCO Energy 7.75% 15/5/2013
%
958,500 881,304 479,015 214,623
0.70 0.64 0.35 0.16
416,805 850,199 224,992 989,134 921,740
0.30 0.62 0.16 0.72 0.67
220,326
0.16
213,587 295,625 440,652 444,799 547,500 738,740 702,969 386,218 452,057 610,277 646,981 191,813 283,991 214,883 656,312
0.16 0.22 0.32 0.32 0.40 0.54 0.51 0.28 0.33 0.45 0.47 0.14 0.21 0.16 0.48
941,595
0.69
375,435 560,397 234,842
0.27 0.41 0.17
389,847
0.28
429,247
0.31
768,497 218,512 325,025 420,434 208,921 212,550 212,550
0.56 0.16 0.24 0.31 0.15 0.16 0.16
226,547
0.17
953,882 435,468 214,105
0.70 0.32 0.16
650,091 664,088 763,209
0.47 0.48 0.56
441,170 418,879 867,833
0.32 0.31 0.63
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
101
Global High Yield Bond Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$350,000 US$250,000 US$1,000,000 US$500,000 US$250,000 US$250,000 US$575,000 US$500,000 US$575,000 US$250,000 US$250,000 US$615,000 US$385,000 US$250,000 US$750,000 US$1,000,000 US$850,000 US$1,000,000 US$750,000 US$600,000 US$1,000,000 US$500,000 US$275,000 US$350,000 US$500,000 US$500,000 e230,000 e525,000 US$225,000
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
322,246
Sales £7,595,000 US$114,690,368 e6,500,000
% 0.54 0.15 ______ 57.78 ______
Total Bonds
129,368,268 ____________
94.47 ______
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
130,036,294 ____________
94.96 ______
Carrier 1 International (Wts 19/2/2009) 0 Vantico (Wts 14/6/2011) 0 ____________ 0 ____________
0.00 0.00 ______ 0.00 ______
US$250,000 0.14 0.62 0.29 0.14 0.16 0.38 0.32
505,557
0.37
Unquoted Securities
193,368 190,325 584,087
0.14 0.14 0.43
WARRANTS
322,537
0.24
207,366 670,309
0.15 0.49
Luxembourg 2,510 24,019
United Kingdom 33,600 3,348
991,208 750,871 858,494
0.72 0.55 0.63
650,091
0.47
517,585
0.38
Total Warrants
870,936 462,425
0.64 0.34
BONDS
247,491 259,829
0.18 0.19
408,510 412,658 219,650
0.30 0.30 0.16
504,000 213,690
0.37 0.16
Value date 12/8/2005 12/8/2005 12/8/2005
Jazztel (Wts 15/7/2010) Ono Finance (Wts 31/5/2009)
0 0 ____________ 0 ____________
0.00 0.00 ______ 0.00 ______
29,207 ____________ 29,207 ____________
0.02 ______ 0.02 ______
0 ____________ 0 ____________
0.00 ______ 0.00 ______
29,207 ____________ 130,065,501
0.02 ______ 94.98
6,876,494 ____________ 136,941,995 ____________
5.02 ______ 100.00 ______
USA 14,085
Healthsouth (Wts 16/1/2014)
USA e13,830,000
WinStar Communication 12.75% 15/4/2010
Total Bonds Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (e)
Open Futures Contracts as at 30 June 2005 Unrealised profit/(loss) e (234,095) (5,965,973) 252,080 ________
Note: The net unrealised loss attributed to these transactions is included above in Other Net Assets (see Note 2c).
Merrill Lynch International Investment Funds
Description
189,740 852,273 401,252 193,368 224,992 515,096 437,541
(5,947,988) _________
102
Value (e)
Young Broadcasting 8.75% 15/1/2014 740,295 Young Broadcasting 10% 1/3/2011 ____________ 199,589 79,124,835 ____________
0.24
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases e11,035,541 e89,050,000 US$8,150,193
Holding US$1,000,000
Sierra Pacific Resources 8.625% 15/3/2014 Sinclair Broadcast Group 4.875/2% 15/7/2018 (step-up coupon) Sinclair Broadcast Group 8% 15/3/2012 Six Flags 8.875% 1/2/2010 Six Flags 9.625% 1/6/2014 Smithfield Foods ‘B’ 7.75% 15/5/2013 Smithfield Foods ‘B’ 8% 15/10/2009 Southern Star Central 8.5% 1/8/2010 Standard Aero Holdings ‘144A’ 8.25% 1/9/2014 Star Gas Partners/Star Gas Finance 10.25% 15/2/2013 Suncom Wireless 8.5% 1/6/2013 Terra Capital 11.5% 1/6/2010 Time Warner Telecom 9.75% 15/7/2008 Time Warner Telecom 10.125% 1/2/2011 Titan 8% 15/5/2011 Transcontinental Gas Pipe Line ‘B’ 8.875% 15/7/2012 TransDigm 8.375% 15/7/2011 Triad Hospitals 7% 15/11/2013 Universal City Florida Holding I/II 8.375% 1/5/2010 Universal City Florida Holding I/II FRN 1/5/2010 Universal Compression 7.25% 15/5/2010 US Unwired ‘B’ 10% 15/6/2012 Vanguard Health Holdings II 9% 1/10/2014 Viasystems 10.5% 15/1/2011 Vought Aircraft Industries 8% 15/7/2011 Waste Services ‘144A’ 9.5% 15/4/2014 WDAC Subsidiary 8.5% 1/12/2014 WDAC Subsidiary ‘144A’ 8.5% 1/12/2014 Western Wireless 9.25% 15/7/2013
Number of Contracts (18) Total commitment
Issuer US Treasury 10 Year Note
Expiration Value date e September 2005 __________ (1,691,093) (1,691,093) __________
Note: The net unrealised loss of e12,110 attributed to this transaction is included above in Other Net Assets (see Note 2c).
Global Opportunities Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) 153,253
Canada 73,500
Ultra Petroleum
2,205,000 ____________
1.29 ______
Nokian Renkaat
2,430,454 ____________
1.43 ______
France 580,440 68,424 13,296
A Novo Axalto Holding LISI
Amadeus Fire AWD Holding Software (Bearer)
0.45 1.21 0.56 ______
3,775,985 ____________
2.22 ______
Piraeus Bank
495,661 1,005,305 2,155,211 ____________
0.29 0.59 1.27 ______
3,656,177 ____________
2.15 ______
3,538,000
1,553,701 ____________
0.91 ______
62,786,603 1,808,800
1,070,584 1,498,771 347,595 1,565,607 ____________
0.63 0.88 0.20 0.92 ______
4,482,557 ____________
2.63 ______
2,353,752 ____________
1.38 ______
1,803,979 ____________
1.06 ______
1,930,759 390,705 1,845,982 2,339,993 522,083 1,544,654 1,698,883 2,219,737 79,328 2,324,218 ____________
1.13 0.23 1.08 1.37 0.31 0.91 1.00 1.30 0.05 1.37 ______
14,896,342 ____________
8.75 ______
829,013 ____________
0.49 ______
1,423,010 2,265,244 2,140,633 1,579,544 ____________
0.84 1.32 1.26 0.93 ______
7,408,431 ____________
4.35 ______
Hong Kong 24,122,000 7,872,000 1,400,000 2,154,000
Asia Standard International Group Heng Tai Consumables Group Ocean Grand Holdings Ports Design
India 122,400
OMI
Italy 291,696
Azimut Holding
Japan 37,100 6,930 111,100 194,000 23,300 2,045 208,000 830,000 5,000 66,300
Fast Retailing Goldcrest HS Securities OMC Card Sato Sky Perfect Communications Suruga Bank Taiheiyo Cement Uniden World
Malaysia 5,000,000
E&O Property Development
Netherlands 57,356 56,940 52,072 17,587
Fugro Nutreco Holding Stork Ten Cate
Visma
1,844,593 ____________
1.08 ______
First Philippine Holdings
727,982 ____________
0.43 ______
Intentia International ‘B’ Lindex
1,429,038 2,053,975 ____________ 3,483,013 ____________
0.84 1.21 ______ 2.05 ______
774,765 1,584,336 1,389,541 ____________
0.45 0.93 0.82 ______
3,748,642 ____________
2.20 ______
878,482 ____________
0.51 ______
790,342 1,028,971 ____________ 1,819,313 ____________
0.46 0.61 ______ 1.07 ______
1,474,238 395,885 839,137 1,653,551 887,434 1,926,738 2,440,045 674,841 1,139,063 1,259,199 2,062,299 1,426,832 1,621,847 1,914,325 ____________
0.87 0.23 0.49 0.97 0.52 1.13 1.43 0.40 0.67 0.74 1.21 0.84 0.95 1.12 ______
19,715,434 ____________
11.57 ______
2,282,937 2,159,612 2,060,829 2,281,091 2,006,130 2,226,600 1,774,480 1,553,704 1,222,656 3,058,168 1,219,308 221,760 1,857,119 2,110,318 2,344,188 1,500,424
1.34 1.27 1.21 1.34 1.18 1.31 1.04 0.91 0.72 1.79 0.72 0.13 1.09 1.24 1.38 0.88
Switzerland 24,190 5,738 17,764
Logitech International Rieter Holding UBS
Taiwan
Greece 83,688
%
Sweden 689,661 44,238
769,722 2,060,556 945,707 ____________
Germany 70,888 23,894 52,197
Value (US$)
Philippines 896,700
Finland 133,514
Description Norway
DER PAO Construction
Thailand Jasmine International United Broadcasting
United Kingdom 155,864 134,420 72,627 245,262 792,509 1,310,417 74,053 508,765 247,605 679,953 532,474 573,716 779,745 304,664
British Sky Broadcasting BTG Dana Petroleum Dignity Intec Telecom Systems Microgen NDS Group ADR Patientline Peacock Group PHS Group Raymarine SDL Umbro VT Group
USA 47,100 154,700 60,100 109,300 57,400 36,000 32,800 29,600 59,700 39,300 27,800 18,000 19,700 61,400 64,900 14,800
Actuant ‘A’ Alamosa Holdings Amedisys American Tower ‘A’ Arthrocare Atwood Oceanics Avid Technology Cal Dive International Cohen & Steers Corporate Executive Board CoStar Group DexCom Eagle Materials East West Bancorp Engineered Support Systems ESCO Technologies
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
103
Global Opportunities Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 79,400 70,500 44,100 48,300 109,000 26,100 38,700 16,900 64,200 103,700 34,200 50,600 14,900 70,400 3,200 30,000 48,900 74,700 28,600 44,400 118,600 96,800 36,600 49,300 51,600 42,300 2,600
Description Euronet Worldwide Flir Systems Global Payments Global Signal Grant Prideco Guitar Center Immucor Kos Pharmaceuticals Life Time Fitness Microsemi National Financial Partners Navigant Consulting Oshkosh Truck ProAssurance Psychiatric Solutions Range Resources Red Robin Gourmet Burgers Resources Connection Respironics Salesforce.com SBA Communications ‘A’ Scientific Games ‘A’ Spectrum Brands SS&C Technologies Station Casinos SVB Financial Group SVB Financial Group
Value (US$)
%
Holding
2,333,567 2,133,330 2,971,899 1,801,590 2,877,600 1,532,070 1,081,665 1,111,665 2,145,564 1,969,263 1,350,558 918,390 1,168,160 2,921,600 155,648 816,000 3,036,690 1,695,690 1,031,888 926,628 1,577,380 2,631,992 1,200,480 1,573,656 3,475,777 2,063,394 126,828
1.37 1.25 1.74 1.06 1.69 0.90 0.64 0.65 1.26 1.16 0.79 0.54 0.69 1.72 0.09 0.48 1.78 1.00 0.61 0.54 0.93 1.55 0.70 0.92 2.03 1.21 0.07
22,835 34,800 19,200 39,600 46,100 1,900 91,600
Sector Breakdown as at 30 June 2005
Industrials Consumer discretionary Information technology Finance Materials Healthcare Telecommunication services Energy Consumer staples Other net assets
% of net assets 25.9 18.4 17.1 16.5 6.0 5.9 2.3 2.2 0.9 4.8 ____________ 100.0 ____________
104
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Merrill Lynch International Investment Funds
Description
Value (US$)
%
Telvent GIT United Therapeutics UTI Worldwide Ventana Medical Systems WellCare Health Plans Westlake Chemical Wind River Systems
234,059 1,694,064 1,342,272 1,583,604 1,643,465 47,519 1,465,600 ____________
0.14 0.99 0.79 0.93 0.96 0.03 0.86 ______
84,518,879 ____________
49.62 ______
162,131,729 ____________
95.19 ______
0 ____________ 0 ____________
0.00 ______ 0.00 ______
162,131,729
95.19
8,185,445 ____________ 170,317,174 ____________
4.81 ______ 100.00 ______
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Unquoted Securities COMMON STOCKS (SHARES) Hong Kong 3,550,000
Euro-Asia Agricultural Holdings
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (US$)
Global SmallCap Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) & WARRANTS Australia 541,400 1,345,700 184,200 575,800 627,969 1,567,032 1,910,000
Ansell CFS Gandel Retail Trust (Units) Cochlear Lion Nathan Promina Group Qantas Airways Tap Oil
4,132,950 1,713,844 5,490,146 3,318,555 2,248,885 4,015,281 3,485,401 ____________
0.98 0.41 1.30 0.78 0.53 0.95 0.82 ______
24,405,062 ____________
5.77 ______
2,769,090 ____________
0.65 ______
4,132,019 1,420,614 1,689,090 1,684,038 1,267,630 ____________
0.98 0.33 0.40 0.40 0.30 ______
10,193,391 ____________
2.41 ______
5,500,000 ____________
1.30 ______
1,014,884 4,699,317 3,094,034 2,041,634
0.24 1.11 0.73 0.48
137,400 24,100 138,600
RHJ International
Bermuda 4,758,500 15,210 1,959,700 3,262,000 25,870
Clear Media Everest Re Group GOME Electrical Appliances Holdings People’s Food Holdings RenaissanceRe Holdings
Cia de Concessoes Rodoviarias
Canada 227,500 105,900 90,100 513,700 60,000 52,500 334,500
Abitibi – Consolidated Cameco Cognos Diagnocure Industrial Alliance Insurance & Financial Services Northbridge Financial TGS North American Real Estate Investment Trust (Units)
720,700 49,800
Global Bio-Chem Technology Group (Wts 31/5/2007) Kingboard Chemical Holdings The9 ADR
Shanghai Electric Group ‘H’ Shenzhen Expressway ‘H’
GN Store Nord Topdanmark Vestas Wind Systems
2,021,271 ____________ 15,543,985 ____________
0.48 ______ 3.67 ______
1,287 2,299,295 1,287,330 ____________
0.00 0.54 0.31 ______
AS Hansapank
1.76 ______
3,587,912 ____________
0.85 ______
701,427 390,657 ____________
0.17 0.09 ______
1,092,084 ____________
0.26 ______
3,249,863 1,772,833 6,218,868 ____________
0.77 0.42 1.47 ______
11,241,564 ____________
2.66 ______
102,532 ____________
0.02 ______
Rhodia* SCOR* Trigano
3,224,387 4,588,164 2,256,511 ____________
0.76 1.09 0.53 ______
10,069,062 ____________
2.38 ______
Paion SGL Carbon
1,835,544 3,326,192 ____________ 5,161,736 ____________
0.43 0.79 ______ 1.22 ______
Titan Cement
2,088,056 ____________
0.49 ______
Pantaloon Retail India
5,785,367 ____________
1.37 ______
Bank Danamon Indonesia Indofood Sukses Makmur Surya Citra Media
4,659,449 2,645,012 1,137,798 ____________
1.10 0.62 0.27 ______
8,442,259 ____________
1.99 ______
Ryanair Holdings ADR
6,962,526 ____________
1.65 ______
1,184,358 3,813,550 1,127,610 ____________
0.28 0.90 0.27 ______
6,125,518 ____________
1.45 ______
4,703,178 1,127,696 3,096,535 ____________
1.11 0.27 0.73 ______
8,927,409 ____________
2.11 ______
1,789,215 2,182,512 1,089,883 4,395,815 4,764,257 971,236 1,066,879 1,030,432 2,598,939 2,824,544 ____________
0.42 0.52 0.26 1.04 1.13 0.23 0.25 0.24 0.61 0.67 ______
22,713,712 ____________
5.37 ______
Israel 103,800 586,700 113,900
Alvarion Frutarom ‘144A’ GDR PowerDsine
Italy 179,700 182,700 200,670
Marzotto Milano Assicurazioni Permasteelisa
Japan
Estonia 6,300
7,466,646 ____________
Ireland
0.33 0.30
Denmark 287,000 24,300 376,900
0.47 0.20 1.09 ______
Indonesia 9,010,000 23,481,000 17,093,600
China 3,098,000 1,038,200
1,991,016 855,630 4,620,000 ____________
India 182,800
153,800 1,409,847 1,262,998
Pohjola Group ‘D’ Stockmann ‘B’ YIT-Yhtyma
Greece 67,870
Cayman Islands 76,938
%
Germany 201,400 259,800
Brazil 235,600
Value (US$)
France 1,896,900 2,292,700 26,197
Belgium 118,400
Description Finland
210,000 54,900 21,200 579,200 252,300 313,400 302,000 324,000 550,000 49,000
Bank of Kyoto* Diamond Lease Ito En Lopro* Miraca Holdings Nihon Yamamura Glass Senko Shinko Securities Tokyu Land Yamada Denki
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
105
Global SmallCap Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Luxembourg 75,075
Millicom International Cellular
1,392,376 ____________
0.33 ______
Holding
Description
Value (US$)
%
1,983,080 1,150
Premier Image Technology Waffer Technology
2,251,853 1,511 ____________
0.53 0.00 ______
5,223,238 ____________
1.23 ______
1,198,257 ____________
0.28 ______
2,825,210 1,481,696 3,265,757 2,391,314 6,296,798 1,298,521 2,101,079 970,216 ____________
0.67 0.35 0.77 0.56 1.49 0.31 0.49 0.23 ______
20,630,591 ____________
4.87 ______
2,753,085
0.65
1,300,770 6,064,848 2,810,738 4,952,882 2,082,850 372,325 1,905,008 1,931,650 2,141,392 1,231,139 1,779,180 2,830,574 1,980,240 5,136,582 901,824 47,520 1,766,618 2,120,349 1,076,896 4,466,724 2,047,647 1,147,878 436,436 1,731,375 1,668,537 2,648,820 2,122,626 631,176 3,054,670 1,424,750 2,777,650 919,872 4,632,562 2,078,039 1,563,092 3,299,160 3,455,200
0.31 1.43 0.66 1.17 0.49 0.09 0.45 0.46 0.51 0.29 0.42 0.67 0.47 1.21 0.21 0.01 0.42 0.50 0.25 1.06 0.48 0.27 0.10 0.41 0.39 0.63 0.50 0.15 0.72 0.34 0.66 0.22 1.09 0.49 0.37 0.78 0.82
Malaysia 12,745,200 2,167,000
AirAsia Scomi Group
5,500,994 849,759 ____________ 6,350,753 ____________
1.30 0.20 ______ 1.50 ______
1,500,000
6,399,385 1,712,565 2,353,907 5,435,012 1,501,627 ____________
1.51 0.40 0.56 1.28 0.36 ______
17,402,496 ____________
4.11 ______
475,300 941,700 2,262,500 565,100 1,695,666 313,500 250,700 505,691
2,067,173 ____________
0.49 ______
Netherlands 453,700 146,300 57,260 363,576 69,200
Koninklijke Wessanen Qiagen Stork Tele Atlas TomTom
Thailand Oishi Group
United Kingdom AMEC Brit Insurance Holdings Game Group HMV Group International Power St James’s Place Capital SurfControl Wellington Underwriting
Netherlands Antilles 4,354,500
LMA International
Norway 796,000 140,700 271,000 105,400
DET Norske Oljeselskap Fred Olsen Energy Ocean RIG ProSafe
3,031,919 3,526,343 2,219,281 3,179,584 ____________
0.72 0.83 0.53 0.75 ______
11,957,127 ____________
2.83 ______
3,856,870 ____________
0.91 ______
3,331,169 ____________
0.79 ______
846,858 4,041,548 2,126,629 725,182 2,272,680 ____________
0.20 0.96 0.50 0.17 0.54 ______
10,012,897 ____________
2.37 ______
2,181,338 ____________
0.52 ______
3,928,884 4,235,451 ____________ 8,164,335 ____________
0.93 1.00 ______ 1.93 ______
1,893,786 2,105,505 4,348,692 ____________
0.44 0.50 1.03 ______
8,347,983 ____________
1.97 ______
28,646 1,427,207 1,514,021
0.01 0.33 0.36
Philippines 4,456,880
Bank of the Philippine Islands
South Africa 3,657,700
Network Healthcare Holdings
South Korea 96,700 280,013 28,320 16,900 24,000
Halla Climate Control Kangwon Land NCSoft S1 (Korea) Samsung SDI
Spain 34,140
Grupo Ferrovial
Sweden 928,000 318,400
Boliden Gambro ‘B’*
Switzerland 50,480 15,866 38,400
Micronas Semiconductor Holding Swiss Life Holding Ypsomed Holding
Taiwan 18,426 883,000 826,700
106
Delta Electronics Giant Manufacturing MIN AIK Technology
Merrill Lynch International Investment Funds
USA 39,750 89,400 111,200 112,700 90,200 38,500 48,600 80,550 55,925 36,800 114,100 228,100 214,600 89,200 490,600 73,200 7,200 51,400 150,700 58,400 509,900 104,100 156,600 14,300 202,500 152,100 134,800 110,900 44,200 251,000 139,000 76,100 28,800 91,300 103,850 52,400 228,000 61,700
Abercrombie & Fitch ‘A’ Advance America Cash Advance Centers Affymetrix AnnTaylor Stores Arch Coal Avid Technology BioMarin Pharmaceuticals Build-A-Bear Workshop Cheesecake Factory (The) Cleveland-Cliffs Clifton Savings Bancorp CryoLife Cypress Semiconductor Cytyc Del Monte Foods DexCom Ditech Communications East West Bancorp Educate Education Realty Trust Foundry Networks Freightcar America Grey Wolf IDX Systems Informatica Integrated Device Technology Interline Brands Intersil ‘A’ J Jill Group (The) Key Energy Services KMG America Las Vegas Sands Lifeline Systems LifePoint Hospitals Marvel Enterprises Maverick Tube Metris Millipore
Global SmallCap Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 263,500 57,525 37,900 195,500 66,200 5,330 176,775 59,000 39,750 89,925 319,600 91,700 73,075 114,600 146,325 57,100 57,200 266,600 (*)
Description Monolithic Systems Technology NAVTEQ NeuStar ‘A’ OccuLogix optionsXpress Holdings OSI Pharmaceuticals Owens-Illinois Pharmaceutical Product Development Plantronics Polo Ralph Lauren Provident New York Bankcorp Rainier Pacific Financial Group Red Robin Gourmet Burgers Remington Oil & Gas Rowan SeaBright Insurance Holdings Serological Siebel Systems*
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Holding
1,328,040 2,166,392 994,496 1,651,975 1,004,254 217,571 4,385,788 2,770,049 1,463,198 3,886,559 3,883,140 1,458,030 4,537,957 4,030,482 4,399,993 650,940 1,221,220 2,364,742
0.31 0.51 0.24 0.39 0.24 0.05 1.04 0.65 0.35 0.92 0.92 0.34 1.07 0.95 1.04 0.15 0.29 0.56
106,300 648,000 147,050 110,300 191,000 97,100 201,700
Description
Value (US$)
%
Stratasys SupportSoft Sybase Take-Two Interactive Software UAP Holdings Vishay Intertechnology Wabash National
3,495,144 3,382,560 2,716,014 2,813,753 3,115,210 1,144,809 4,937,616 ____________
0.83 0.80 0.64 0.66 0.74 0.27 1.17 ______
149,312,616 ____________
35.28 ______
5,052,858 ____________ 414,659,988
1.19 ______ 97.98
8,551,288 ____________ 423,211,276 ____________
2.02 ______ 100.00 ______
Venezuela 265,800
CANTV – Cia Anonima Nacional Telefonos de Venezuela ADR
Total Portfolio Other Net Assets Total Net Assets (US$)
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Industrials Finance Consumer discretionary Information technology Healthcare Materials Energy Consumer staples Telecommunication services Utilities Other net assets
% of net assets 16.9 15.6 14.3 12.5 12.0 9.2 7.2 6.2 2.6 1.5 2.0 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
107
Japan Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Japan 50,000 86,400 187,800 88,600 190,700 472,000 546,000 178,200 358,000 109,500 131,000 193,700 36,900 2,516 751 87,300 63,100 1,123,000 1,335,000 266,000 34,200 963 743,000 1,204,000 192,000 153,000 255,900 106,700 46,100 322,000 997,000 81,600 48,100 34,400 (*)
Alfresa Holdings Arisawa Manufacturing Asahi Breweries Astellas Pharma Bandai* Bank of Yokohama Brother Industries Casio Computer COMSYS Holdings Credit Saison Dai Nippon Printing Denso Don Quijote* eAccess* East Japan Railway EDION Elpida Memory* Fuji Fire & Marine Insurance Haseko* Hiroshima Bank Hoya INPEX Japan Airlines Kajima Kamigumi Kuraray Marui Ministop Misawa Homes Holdings Mitsubishi Securities Mitsui & Co Murata Manufacturing Nichii Gakkan Nidec
2,236,180 2,373,116 2,243,152 3,033,923 3,859,494 2,733,579 5,017,014 2,334,572 3,315,420 3,650,666 2,115,083 4,418,986 2,013,701 1,698,098 3,867,644 1,140,550 2,041,005 3,571,528 2,846,590 1,216,085 3,955,193 5,464,086 2,007,205 4,460,073 1,484,932 1,452,867 3,456,552 1,957,006 1,736,875 2,859,835 9,458,365 4,165,530 1,173,385 3,648,868
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Industrials Consumer discretionary Finance Information technology Healthcare Materials Telecommunication services Energy Consumer staples Utilities Other net assets
% of net assets 24.7 20.2 19.2 14.4 6.9 4.9 3.3 2.6 2.0 1.1 0.7 ____________ 100.0 ____________
108
Merrill Lynch International Investment Funds
1.06 1.13 1.07 1.44 1.84 1.30 2.39 1.11 1.58 1.74 1.01 2.10 0.96 0.81 1.84 0.54 0.97 1.70 1.35 0.58 1.88 2.60 0.95 2.12 0.71 0.69 1.64 0.93 0.83 1.36 4.50 1.98 0.56 1.74
Holding
Description
Value (US$)
%
130,800 162,000 895,500 39,300 4,706 651 142,400 2,530 1,695,000 823,000 1,761,000 257,000 536,000 311,000 51,000 190,000 352,000 975 82,500 87,530 972,000 157,800 105,900 797,000 1,184,000 127,400 66,000 807 3,931 105,000 820,000 394,000
Nifco Nippon Electric Glass Nissan Motor Nitto Denko NTT DoCoMo NTT Urban Development Pioneer Rakuten Resona Holdings Sanyo Electric Seiyu* Sekisui House Shinsei Bank Shizuoka Bank Sumisho Computer Systems Sumitomo Electric Industries Sumitomo Metal Mining Sumitomo Mitsui Financial Group Takeda Pharmaceutical Takefuji* Teijin THK Tohoku Electric Power Tokyu Toshiba Toyota Motor Trend Micro TV Asahi UMC Japan* Ushio Yokohama Rubber Zeon
1,990,130 2,453,131 8,883,817 2,258,298 6,973,125 2,676,234 2,160,192 2,032,141 3,170,090 2,104,350 3,182,152 2,602,977 2,895,994 2,677,842 1,200,355 1,950,130 2,420,243 6,606,897 4,099,664 5,931,299 4,522,777 3,264,932 2,262,865 3,586,074 4,728,306 4,569,740 2,355,443 1,735,330 1,562,742 1,873,648 3,519,161 3,413,866 ____________
0.95 1.17 4.23 1.07 3.32 1.27 1.03 0.97 1.51 1.00 1.51 1.24 1.38 1.27 0.57 0.93 1.15 3.14 1.95 2.82 2.15 1.55 1.08 1.71 2.25 2.17 1.12 0.82 0.74 0.89 1.67 1.62 ______
208,671,103
99.26
1,562,597 ____________ 210,233,700 ____________
0.74 ______ 100.00 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
Japan Opportunities Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Japan 166,300 154,700 879,600 3,726,000 658,000 2,257,000 377,300 151,900 537,200 811,050 2,763,000 1,162,800 752,700 200,200 698,300 552,700 510,040 162,160 1,398,800 1,148,600 658,000 3,422,000 267,800 94 535,800 1,301,200 553,800 7,679,000 284,400 567,000 1,824,000 550,000 1,587,100 5,597,000 1,859,100 (*)
Aderans Agrex Aica Kogyo Aichi Steel Alps Logistics Asahi Denka Belc Central Sports Daiichikosho Diamond City Dowa Mining Eneserve ESPEC Fancl Fast Retailing Fuji Electronics Goldcrest Gulliver International HS Securities Idec Izumi Iriso Electronics Japan Aviation Electronics Industry Kahma Link Theory Holdings Macnica MISUMI Group Mitsui High-Tec Nachi-Fujikoshi NBC NE Chemcat NEOMAX Nice Nissen OMC Card OSG*
3,944,148 3,773,859 9,814,853 20,232,472 14,179,010 24,062,747 8,249,617 2,998,754 11,042,033 26,893,376 18,473,290 34,774,801 8,290,052 8,031,167 36,340,940 9,497,988 28,755,469 22,621,566 23,241,759 14,580,646 12,781,917 36,483,261 4,183,476 744,833 13,361,137 41,500,220 6,844,956 26,295,141 5,139,149 14,113,551 40,458,331 1,883,361 19,602,183 67,510,015 23,549,538
0.30 0.29 0.75 1.55 1.08 1.84 0.63 0.23 0.84 2.05 1.41 2.66 0.63 0.61 2.78 0.73 2.20 1.73 1.78 1.11 0.98 2.79 0.32 0.06 1.02 3.17 0.52 2.01 0.39 1.08 3.09 0.14 1.50 5.16 1.80
Holding
Value (US$)
%
6,545,910 1,022,065 20,607,862 10,847,508 28,440,992 33,181,177 22,873,045 12,269,921 13,957,886 13,035,983 27,071,856 16,925,645 14,687,784 27,994,268 1,852,371 39,662,377 66,273,845 2,406,379 16,993,887 5,940,199 892,954 21,181,777 2,025,501 28,826,073 44,201,526 2,121,729 15,854,492 71,970,134 9,479,589 8,105,949 8,576,380 14,114,364 _____________
0.50 0.08 1.57 0.83 2.17 2.54 1.75 0.94 1.07 1.00 2.07 1.29 1.12 2.14 0.14 3.03 5.06 0.18 1.30 0.45 0.07 1.62 0.15 2.20 3.38 0.16 1.21 5.50 0.72 0.62 0.66 1.08 ______
Total Portfolio
1,254,191,044
95.83
Other Net Assets
54,591,380 _____________ 1,308,782,424 _____________
4.17 ______ 100.00 ______
1,035,000 69,400 733,400 276,000 2,282,700 2,538,000 1,020,800 584,100 1,416,000 417,000 35,841 1,817,000 697,700 1,291,000 340,000 4,856,000 24,781,000 162,500 4,080,000 1,852,000 142,000 1,837,300 478,000 2,292,000 2,786,000 191,700 502,800 2,053,000 1,501,000 843,200 231,520 655,000
Description Paltek Renaissance Resorttrust Riso Kagaku Saizeriya Sanken Electric Sato Sazaby Seiren SK Kaken SKY Perfect Communications Sodick Sumida Sumitomo Wiring Systems Suncall Suruga Bank Taiheiyo Cement Taiyo Kagaku Tokai Carbon Tokyo Tekko Torishima Pump Manufacturing Toyo Toyo Kohan Tsubaki Nakashima Uniden Unimat Offisco United Arrows World Yamato International Yokowo Yusen Air & Sea Service Zensho
Total Net Assets (US$)
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Consumer discretionary Industrials Materials Finance Information technology Telecommunication services Consumer staples Other net assets
% of net assets 27.2 22.7 16.8 14.2 7.1 5.9 1.9 4.2 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
109
Japan Value Fund(2) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Japan 65,800 41,100 112,000 22,100 117,000 115,000 148,000 97,000 42,700 1,747 317,500 38,100 24,000 163 121,000 165 116,000 53,500 238,000 117,700 (2)
Alpine Electronics Aoyama Trading Asahi Breweries Autobacs Seven Brother Industries Central Glass COMSYS Holdings Daio Paper Denso eAccess Haseko Hisamitsu Pharmaceutical Honda Motor KDDI Mitsubishi Securities Mitsubishi Tokyo Financial Group Mitsui & Co Namco Nishimatsu Construction Nissan Motor
960,725 1,037,899 1,337,769 744,788 1,075,074 720,050 1,370,620 757,211 974,139 1,179,085 676,998 1,017,218 1,186,124 755,504 1,074,659 1,402,831 1,100,472 713,464 860,139 1,167,644
New Fund launched, see note 15, for further details.
Sector Breakdown as at 30 June 2005
Consumer discretionary Information technology Capital goods Finance Consumer staples Healthcare Telecommunication services Materials Utilities Other net assets
% of net assets 30.1 15.6 15.0 13.5 6.2 6.0 4.5 3.7 2.9 2.5 ____________ 100.0 ____________
110
Merrill Lynch International Investment Funds
2.41 2.61 3.36 1.87 2.70 1.81 3.44 1.90 2.44 2.96 1.70 2.55 2.98 1.90 2.70 3.52 2.76 1.79 2.16 2.93
Holding 707 43,700 130,400 11,500 117,000 127,000 136 27,500 17,710 49,600 305,000 43,100 115,000 34,900 45,100 147 89,200
Description
Value (US$)
%
NTT DoCoMo Omron QP Rohm Sekisui House Sumitomo Sumitomo Mitsui Financial Group Takeda Pharmaceutical Takefuji Tokyo Broadcasting System Tokyo Gas Tokyo Ohka Kogyo Toppan Printing Toyota Industries Toyota Motor UFJ Holdings Yamaha
1,047,599 965,366 1,092,167 1,111,766 1,185,013 1,020,087 921,577 1,366,555 1,200,083 822,784 1,143,614 911,223 1,220,863 955,432 1,617,703 767,674 1,394,256 ____________
2.63 2.42 2.74 2.79 2.97 2.56 2.31 3.43 3.01 2.07 2.87 2.29 3.06 2.40 4.06 1.93 3.50 ______
38,856,175
97.53
985,570 ____________ 39,841,745 ____________
2.47 ______ 100.00 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
Latin American Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Argentina 270,831 134,000
Central Costanera ‘B’ Tenaris ADR
Holding 150,000 649,000
COMMON / PREFERRED STOCKS (SHARES) 304,160 10,616,820 ____________
0.04 1.34 ______
10,920,980 ____________
1.38 ______
AES Tiete (Pref) 5,706,314 All America Latina Logistica (Units) 7,873,514 AMBEV – Cia de Bebidas das Americas (CM) ADR 3,141,600 AMBEV – Cia de Bebidas das Americas (PR) ADR 19,317,280 Banco Bradesco ADR (Pref) 30,806,700 Banco Itau Holding Financeira ADR 41,205,940 Brasil Telecom (Pref) 46,138 Brasil Telecom Participacoes 3,563,393 Braskem ‘A’ (Pref) 6,657,810 Caemi Mineracao e Metalurgica (Pref) 11,969,270 CEMIG – Cia Energetica de Minas Gerais ADR 10,014,200 Cia de Concessoes Rodoviarias 8,964,346 Cia de Saneamento Basico do Estado de Sao Paulo ADR 3,707,470 Cia Siderurgica Nacional ADR 7,363,600 Cia Vale do Rio Doce ADR 77,028,300 CPFL Ernergia ADR 5,760,000 Empresa Nacional de Comercio Redito e Participacoes (Pref) 66,859 Espirito Santo Centrais Electricas 2,623,599 Gol Linhas Aereas Inteligentes ADR 7,055,100 Grendene 640,565 Iochpe Maxion (Pref) 2,935,543 Klabin (Pref) 3,800,934 Lojas Americanas (Pref) 5,278,879 MarcoPolo (Pref) 3,259,762 Natura Cosmeticos 7,516,002 Perdigao (Pref) 4,117,997 Petroleo Brasileiro ADR 77,072,634 Porto Seguro 7,308,998 Submarino 3,633,829 Suzano Bahia Sul Papel e Celulose (Pref) 3,952,466 Tele Celular Sul Participacoes 497,783 Tele Norte Leste Participacoes 21,643,510 Tele Norte Leste Participacoes (Receipt) 173,413 Tele Sudeste Celular Participacoes (Pref) 388,922 Telemar Norte Leste ‘A’ (Pref) 7,764,767 TIM Sul ‘B’ (Pref) 3,002,661 Ultrapar Participacoes (Pref) 4,385,078 Usinas Siderurgicas de Minas Gerais ‘A’ (Pref) 23,951,188 Weg (Pref) 5,991,002 ____________
0.72 1.00
270,000
0.40
2,287,000 1,135,400 857,190 5,670,000 408,000 7,830,000 219,974 200,000 987,000 191,000 19,000 1,480,000 344,100 6,187,000 1,800,800 4,910,001
735,000 127,400
Brazil 317,902,000 265,000 123,200 628,000 870,000 446,000 10,730,660 321,046,000 780,000 12,760,000 322,000 384,000 247,000 449,000 3,035,000 240,000 13,126,643 36,360 234,000 89,300 462,000 2,250,000 269,200,000 1,600,000 230,000 180,000 1,668,600 820,000 473,000 960,001 276,598,396 956,700 8,338 49,000 321,000 67,374,000 245,982,000 1,460,000 1,988,000
Value (US$)
%
2,122,500
0.27
16,484,600 7,658,700 4,509,960 ____________
2.09 0.97 0.57 ______
48,660,005 ____________
6.17 ______
4,320,000 ____________
0.55 ______
Alfa ‘A’ 13,008,835 America Movil ‘L’ ADR 67,624,424 Cemex ADR 36,953,461 Corporacion GEO ‘B’ 14,199,281 Desarrolladora Homex ADR 11,244,480 Empresas ICA Sociedad Controladora 3,243,791 Fomento Economico Mexicano ADR 13,099,452 Grupo Aeroportuario del Pacifico 6,376,000 Grupo Bimbo ‘A’ 2,850,296 Grupo Elektra 1,422,329 Grupo Elektra ADR 559,550 Grupo Financiero Banorte ‘O’ 9,858,308 Grupo Televisa ADR 21,454,635 Qualitas Compania de Seguros 2,851,126 Telefonos de Mexico ‘L’ ADR 34,431,296 Wal-Mart de Mexico ‘V’ 20,071,325 ____________
1.65 8.57 4.68 1.80 1.42 0.41 1.66 0.81 0.36 0.18 0.07 1.25 2.72 0.37 4.36 2.54 ______
259,248,589 ____________
32.85 ______
3,022,590 ____________
0.38 ______
766,359,530 ____________
97.11 ______
0 ____________
0.00 ______
5,383,125 ____________
0.68 ______
0 3 ____________ 3 ____________
0.00 0.00 ______ 0.00 ______
5,383,128 ____________ 771,742,658
0.68 ______ 97.79
17,459,423 ____________ 789,202,081 ____________
2.21 ______ 100.00 ______
Colombia BanColombia ADR
Mexico 2.45 3.90 5.22 0.01 0.45 0.84 1.52 1.27 1.14 0.47 0.93 9.76 0.73 0.01 0.33 0.90 0.08 0.37 0.48 0.67 0.41 0.95 0.52 9.77 0.93 0.46 0.50 0.06 2.74 0.02 0.05 0.98 0.38 0.56
440,187,366 ____________
3.04 0.76 ______ 55.78 ______
Banco Santander Chile ADR 5,297,200 Centros Commerciales Sudamericanos 9,588,245 Cia de Telecomunicaciones de Chile ADR 2,998,800
0.68 1.21 0.38
Chile 164,000 5,670,000 294,000
Description Embotelladora Andina ‘B’ ADR Empresa Nacional de Electricidad/Chile ADR Enersis/Chile ADR Lan Airlines ADR
Venezuela 159,000
CANTV – Cia Anonima Nacional Telefonos de Venezuela ADR
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Unquoted Securities COMMON STOCKS (SHARES) Brazil 238,864
Cia Vale do Rio Doce (Blocked)
Chile 67,500
Genesis Chile Fund
Venezuela 29,318 250,452
International Briquettes Holding Sudamtex de Venezuela ADR
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (US$)
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
111
Latin American Fund
continued
Sector Breakdown as at 30 June 2005
Capital goods Telecommunication services Financials Energy Materials Consumer discretionary Consumer staples Utilities Other net assets
% of net assets 19.6 18.4 16.8 11.0 10.6 7.9 6.6 6.9 2.2 ____________ 100.0 ____________
112
Merrill Lynch International Investment Funds
New Energy Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) & WARRANTS Australia 1,377,260
Novera Energy
1,424,174 ____________
1.03 ______
4,011,453 ____________
2.91 ______
Azure Dynamics 4,187,647 Azure Dynamics (UK Listing) 173,842 Canadian Hydro Developers 1,863,107 Carmanah Technologies 3,020,667 Carmanah Technologies (Wts 19/8/2005) 160,191 Dynetek Industries 1,489,172 Hydrogencis (US Listing) 2,454,806 Hydrogenics 1,767,801 Polaris Geothermal ‘A’ 739,334 Questair Technologies 900,097 Western Geopower 412,523 Westport Innovations 2,312,793 Xantrex Technology 2,922,652 ____________ 22,404,632 ____________
3.03 0.13 1.35 2.19 0.12 1.08 1.78 1.28 0.53 0.65 0.30 1.68 2.12 ______
Belgium 50,000
Umicore
Canada 5,492,500 219,100 553,500 1,284,200 250,000 918,000 685,700 495,346 902,500 781,500 1,017,200 2,022,300 490,250
16.24 ______
Holding 121,691 95,000 395,300 236,000 228,600 125,400 52,500 139,400 400,000 23,000 125,000 517,900 315,300 1,004,653 322,900
Description
Value (US$)
%
784,907 4,028,950 4,067,637 1,121,000 7,173,468 5,609,142 739,725 507,416 6,684,000 384,330 2,243,750 3,651,195
0.57 2.92 2.95 0.81 5.20 4.07 0.54 0.37 4.84 0.28 1.63 2.65
1,576,500 2,702,133 3,303,267 ____________
1.14 1.96 2.39 ______
67,518,402 ____________
48.94 ______
125,838,521 ____________
91.22 ______
Plambeck Neue Energien 6% 15/3/2009 ____________ 6,819 6,819 ____________
0.00 ______ 0.00 ______
Evergreen Solar (Restricted) FPL Group FuelCell Energy* IMPCO Technologies Intermagnetics General Itron KFX Mechanical Technology Medis Technologies Medis Technologies (Restricted) Ormat Technologies Plug Power Quantum Fuel Systems Technologies Worldwide Solar Integrated Technologies Syntroleum
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Unquoted Securities
Denmark 230,058
Vestas Wind Systems
3,795,968 ____________
2.75 ______
1,933,454 1,710,609 7,068,975 ____________
1.40 1.24 5.13 ______
10,713,038 ____________
7.77 ______
5,530,737 ____________
4.01 ______
626,189 2,433,208 1,470,325 1,103,223 3,084,095 1,723,077 ____________
0.45 1.76 1.07 0.80 2.24 1.25 ______
10,440,117 ____________
7.57 ______
BONDS
Germany 20,000 87,320 80,204
Conergy REpower Systems Solarworld
Germany
Gamesa Corporacion Tecnologica*
United Kingdom 352,753 590,000 250,000 1,017,307 160,000 3,300,000
Ceres Power Holdings Climate Exchange D1 Oils Freeplay Energy Johnson Matthey Merrill Lynch New Energy Technology
USA 1,499,800 750,700 522,600 298,350 436,100 80,000 663,400 (*)
Active Power American Superconductor Capstone Turbine Catalytica Energy Systems Distributed Energy Systems DTE Energy Evergreen Solar
Total Bonds
COMMON STOCKS (SHARES) & WARRANTS Canada
Spain 408,890
e13,034
150,000 455,000 250,000 600,000
Polaris Geothermal (Wts 22/12/2005) Polaris Geothermal (Wts 30/12/2006) Western GeoPower (Wts 22/4/2008) Western GeoPower (Wts 4/5/2007)
3.59 4.95 0.51 0.44 1.31 2.72 3.10
0.00 0.00 0.00 0.00 ______
0 ____________
0.00 ______
1,122,109 ____________
0.81 ______
3,000,000 ____________ 4,122,109 ____________
2.17 ______ 2.98 ______
4,128,928 ____________ 129,967,449
2.98 ______ 94.20
7,998,585 ____________ 137,966,034 ____________
5.80 ______ 100.00 ______
United Kingdom 1,490,000
Vienco
USA 800,000
Clipper Windpower
Total Common Stocks (Shares) & Warrants 4,949,340 6,831,370 705,510 611,618 1,809,815 3,754,400 4,278,929
0 0 0 0 ____________
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (US$)
Securities lent, see note 12 for further details.
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
113
New Energy Fund
continued
Sector Breakdown as at 30 June 2005
Enable energy technology Renewable energy Materials Automotive/Onsite Other net assets
% of net assets 60.5 27.3 4.0 2.4 5.8 ____________ 100.0 ____________
114
Merrill Lynch International Investment Funds
Pacific Equity Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
COMMON STOCKS (SHARES) & RIGHTS Australia 77,400 128,800 489,900 25,000
Billabong International Brambles Industries* Macquarie Capital Alliance Group Wesfarmers
802,130 800,103 767,331 760,531 ____________
0.58 0.58 0.55 0.55 ______
3,130,095 ____________
2.26 ______
574,072
0.42
625,530 ____________ 1,199,602 ____________
0.45 ______ 0.87 ______
282,727 672,562 2,499,207 2,514,572 ____________
0.20 0.49 1.81 1.82 ______
5,969,068 ____________
4.32 ______
China 595,000 389,000
China Shenhua Energy Ping An Insurance Group Company of China ‘H’
Holding 579,000 55,400 477,000 370,000 47,300 11,100 81,550 279,200 215,000 361,000 113,800 96,900 978,000 167,600 40,000
Description
Value (US$)
%
Mitsui Sumitomo Insurance Murata Manufacturing Okumura Resona Holdings Rinnai Rohm Shin-Etsu Chemical Shinsei Bank Suzuki Motor Tadano Takeda Pharmaceutical Terumo Tokyo Gas Toyota Industries Trend Micro
5,226,076 2,828,068 2,702,200 691,996 1,168,827 1,073,096 3,101,971 1,508,510 3,385,848 1,911,333 5,655,052 2,801,595 3,667,065 4,588,263 1,427,541 ____________
3.78 2.05 1.95 0.50 0.85 0.78 2.24 1.09 2.45 1.38 4.09 2.03 2.65 3.32 1.03 ______
96,555,200 ____________
69.82 ______
2,670,306 1,142,654 127,071 ____________
1.93 0.83 0.09 ______
3,940,031 ____________
2.85 ______
666,112 824,734 818,707 864,560 3,524,000 ____________
0.48 0.60 0.59 0.62 2.55 ______
6,698,113 ____________
4.84 ______
1,879,094 536,819 ____________ 2,415,913 ____________
1.36 0.39 ______ 1.75 ______
352,359 ____________
0.25 ______
7,412,936 1,427,945 ____________ 8,840,881 ____________
5.36 1.03 ______ 6.39 ______
134,500,024
97.25
3,800,707 ____________ 138,300,731 ____________
2.75 ______ 100.00 ______
Hong Kong 590,000 1,884,000 276,546 716,000
Cofco International Denway Motors Hutchison Whampoa Wharf Holdings
Singapore 360,000 166,000 33,200
Keppel Oversea-Chinese Banking Oversea-Chinese Banking (Rights)
India 35,000 309,800
Oil & Natural Gas Reliance Industries
826,063 4,572,699 ____________ 5,398,762 ____________
0.60 3.30 ______
3,437,361 1,975,022 1,337,932 2,099,028 2,574,923 3,169,991 2,273,802 2,963,549 1,676,322 1,206,345 1,109,850 2,338,963 3,469,468 2,763,250 1,462,959 2,341,529 1,427,054 3,114,715 1,659,978 4,886,799 4,324,540 3,204,379
2.49 1.43 0.97 1.52 1.86 2.29 1.64 2.14 1.21 0.87 0.80 1.69 2.51 2.00 1.06 1.69 1.03 2.25 1.20 3.53 3.13 2.32
3.90 ______
Japan 669,800 177,000 127,000 440,000 48,800 131,900 147,000 118,200 95,000 289,000 34,700 126,900 30,000 487 44,000 190,000 209,200 567,000 346,000 363 317,400 771,000 (*)
Aioi Insurance Ajinomoto Asahi Glass Asahi Kasei Canon Chubu Electric Power Chugai Pharmaceutical Daikin Industries Exedy Fuji Heavy Industries Fuji Soft ABC Futaba Industrial Hoya INPEX Ito-Yokado JGC Katokichi Kubota Matsuzakaya Millea Holdings Mitsubishi Mitsubishi Rayon
South Korea 40,900 68,200 14,600 40,400 19,800
Cheil Industries Hanwha Chem Hyundai Motor KT ADR POSCO
Taiwan 92,943 345,302
China Steel Delta Electronics
Thailand 309,700
Siam Commercial Bank
United Kingdom 5,336,573 88,800
Guinness Peat Group (New Zealand Listing) HSBC Holdings (Hong Kong Listing)
Total Portfolio Other Net Assets Total Net Assets (US$)
Securities lent, see note 12 for further details.
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
115
Pacific Equity Fund
continued
Sector Breakdown as at 30 June 2005
Industrials Finance Consumer discretionary Materials Healthcare Information technology Utilities Consumer staples Energy Telecommunications Other net assets
% of net assets 25.1 19.7 13.2 11.1 10.3 6.9 5.0 2.7 2.6 0.6 2.8 ____________ 100.0 ____________
116
Merrill Lynch International Investment Funds
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases US$190,421 US$445,111
Sales THB7,851,991 THB18,405,333
Value date 5/7/2005 5/7/2005
Unrealised profit/(loss) US$ 344 (435) ________ (91) ________
Note: The net unrealised loss attributed to these transactions is included in Other Net Assets (see Note 2c).
Short Duration Bond Fund (Euro) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (e)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS Australia & New Zealand Banking Group EMTN 3.75% 5/1/2009
e500,000 491,730 ____________
0.43 ______
620,655 ____________
0.54 ______
12,636,078 ____________
11.09 ______
e700,000
Nationwide Building Society EMTN 3.375% 17/8/2015 Permanent Financing ‘4A1’ 5.1% 11/6/2007
Canada e600,000
Imperial Tobacco Canada 5.125% 14/11/2006
Finland e11,945,000
Republic of Finland 5% 4/7/2007
France e3,200,000 e13,516,000 e860,000
e500,000 ¥325,000,000
French Treasury Note BTAN 4.75% 12/7/2007 3,372,256 French Treasury Note BTAN 5% 12/7/2005 13,527,488 Gecina EMTN 3.625% 17/10/2007 ____________ 877,759 17,777,503 ____________
2.96 11.87 0.77 ______ 15.60 ______
Germany 2.25% 15/12/2006 Germany 2.5% 16/9/2005 Germany ‘140’ 4.5% 17/8/2007 L-Bank Landeskreditbank Baden-Wuerttemberg Foerderbank 4.5% 30/12/2005
2,509,049 20,518,451 15,009,440
2,041,226 ____________ 40,078,166 ____________
2.20 18.01 13.17
1.79 ______ 35.17 ______
International US$2,800,000
US$650,000 US$610,000 e500,000 US$960,000 e500,000
International Bank for Reconstruction & Development EMTN 5% 4/11/2005 ____________ 2,336,639
US$600,000 US$620,000
e300,000 e22,200,000 e330,000
0.45
736,883 ____________ 1,247,403 ____________
0.64 ______ 1.09 ______
Resona Bank EMTN 3.75% 15/4/2015____________ 504,418
Cooper Industries Finance 6.25% 25/10/2005 1,503,396 Deutsche Telekom International Finance 7.5% 29/5/2007 328,622 Netherlands Government Bond 3% 15/7/2007 22,621,134 Sealed Air Finance II 5.625% 19/7/2006 340,395 ____________ 24,793,547 ____________
0.46 0.43 0.49 ______
8,127,716 ____________
7.14 ______
108,613,855 ____________
95.31 ______
1.09 0.46 2.14 0.48 0.44 0.45 0.70
Unquoted Securities 2.05 ______
BONDS
0.44 ______
USA US$650,000
Panhandle Eastern Pipe Line ‘B’ 2.75% 15/3/2007
US$220,000
Weyerhaeuser 6.125% 15/3/2007
Netherlands e1,486,000
510,520
ASIF Global Financing XX 2.65% 17/1/2006 1,237,911 Dentsply International 5.75% 13/12/2006 523,250 General Electric Capital 0.1% 20/12/2005 2,436,795 HSBC Finance 6.5% 24/1/2006 547,114 ICI Wilmington 4.375% 1/12/2008 501,646 McDonald’s EMTN 5.125% 23/5/2006 512,371 Northrop Grumman 4.079% 16/11/2006 794,304 SES Global Americas Holdings Group 4.25% 17/12/2007 519,870 US Treasury Bill 2.97% 18/8/2005 495,720 Yum! Brands 7.65% 15/5/2008 558,735 ____________
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Japan e500,000
%
USA US$1,500,000
Germany e2,500,000 e20,500,000 e14,286,000 US$2,450,000
Value (e)
United Kingdom Australia
US$600,000
Description
1.32 0.29 19.85
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (e)
525,272
0.47
187,711 ____________ 712,983 ____________
0.16 ______ 0.63 ______
109,326,838
95.94
4,626,949 ____________ 113,953,787 ____________
4.06 ______ 100.00 ______
0.30 ______ 21.76 ______
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
117
Short Duration Bond Fund (Euro)
continued
Open Futures Contracts as at 30 June 2005
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases e2,331,178 e15,799,064 US$8,450,000
Sales ¥324,500,000 US$20,550,000 e6,963,157
Value date 14/7/2005 14/7/2005 14/7/2005
Net unrealised loss
Unrealised profit/(loss) e (101,962) (1,241,683) 43,865 __________ (1,299,780) __________
Number of Contracts 411 (31) (31)
Issuer Eurex Schatz Euribor 3 Month US Treasury 5 Year Note
Total commitment
Expiration Value date e September 2005 43,944,120 September 2005 (7,590,737) September 2005 __________ (2,800,745) 33,552,638 __________
Note: The net unrealised profit of e22,216 attributed to these transactions is included in Other Net Assets (see Note 2c).
Note: The net unrealised loss attributed to these transactions is included in Other Net Assets (see Note 2c).
Swaps as at 30 June 2005 Unrealised profit/(loss)
Nominal Value e 500,000
500,000
500,000
118
Description Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on J Sainsbury plc 5.625% 11/7/2008) (20/6/2010) Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on W.M.Morrison plc 5.625% 11/7/2008) (20/6/2010) Credit Default Swap (UBS) (Fund pays fixed 0.7% and receives default protection on GUS plc 6.375% 16/7/2009) (20/9/2010)
Merrill Lynch International Investment Funds
e
Nominal Value e 800,000
7,842
(4,916)
(3,903)
Unrealised profit/(loss) Description Credit Default Swap (Lehman) (Fund pays fixed 1.05% and receives default protection on Casino Guichard Perrachon 6% 27/02/2012) (20/6/2010)
e
(1,280) __________ (2,257) __________
Sterling Reserve Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (£)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS
£47,000 £2,000,000 £2,102,000 £52,000
£1,000,000
Australia & New Zealand Banking Group EMTN FRN 27/2/2007 1,510,982 Australia & New Zealand Banking Group EMTN FRN 26/11/2007 47,055 BOS International Australia EMTN 5.125% 7/12/2006 2,017,684 National Australia Bank EMTN FRN 17/7/2006 2,102,652 Westpac Banking EMTN FRN 14/6/2006 ____________ 52,048
4.16 0.10 ______
5,730,421 ____________
11.33 ______
2.99
£1,950,000
Bank of Nova Scotia EMTN FRN 12/9/2005 60,011 Bank of Nova Scotia EMTN FRN 15/8/2006 1,500,443 National Bank of Canada EMTN FRN 14/4/2009 1,201,376 Rio Tinto Canada EMTN 5.5% 8/12/2006 ____________ 1,977,797
0.12 2.97 2.38 3.91 ______ 9.38 ______
2.32 2.79 ______
Danske Bank EMTN FRN 24/11/2006
Bank of Ireland EMTN FRN 2/8/2005 GE Capital UK Funding EMTN FRN 2/8/2005
1.99 ______
1,513,095 ____________
2.99 ______
52,019 ____________
0.10 ______
£1,057,000
Svenska Handelsbanken EMTN FRN 1/12/2005
1,057,124 ____________
2.09 ______
1,911,726 1,500,397
3.78 2.97
499,352 2,004,000 1,510,604
0.99 3.96 2.99
1,615,233 2,187,887 1,541,269 ____________
3.19 4.33 3.05 ______
12,770,468 ____________
25.26 ______
2,010,287 2,030,435
3.98 4.01
275,219 ____________ 4,315,941 ____________
0.54 ______ 8.53 ______
39,312,132
77.75
11,250,391 ____________ 50,562,523 ____________
22.25 ______ 100.00 ______
United Kingdom
£1,500,000 £500,000 £2,000,000 £1,510,000 £1,610,000 £2,200,000 £1,510,000
Alliance & Leicester Group Treasury EMTN FRN 25/5/2006 Barclays Bank EMTN FRN 14/7/2006 BP Capital Markets EMTN 4.25% 12/9/2006 Centrica EMTN 5.375% 14/12/2005 Northern Rock EMTN FRN 16/1/2007 Royal Bank of Scotland EMTN FRN 26/3/2007 (Perpetual) Tesco 4% 31/7/2006 Transco EMTN 6.125% 7/12/2006
USA 1,010,316 ____________
2.00 ______
1,010,092
2.00
1,510,252 ____________ 2,520,344 ____________
2.99 ______ 4.99 ______
UniCredito Italiano EMTN FRN 29/4/2009____________ 2,011,290
3.98 ______
Italy £2,010,000
Den Norske Bank EMTN FRN 8/7/2008
5.11 ______
Ireland £1,010,000 £1,510,000
1,009,004 ____________
Sweden
Denmark £1,010,000
TCNZ Finance EMTN 6% 14/3/2006
3.99
Cayman Islands AIG II 6.5% 31/8/2005 1,172,399 Artesia Overseas EMTN FRN 18/7/2005 ____________ 1,410,084 2,582,483 ____________
RWE Finance EMTN 5.75% 20/4/2006
Norway £52,000
£1,910,000
4,739,627 ____________
£1,170,000 £1,410,000
%
New Zealand £1,500,000
0.09
Canada £60,000 £1,500,000 £1,200,000
Value (£)
Netherlands Australia
£1,510,000
Description
£2,010,000 £2,000,000 £275,000
BMW US Capital EMTN 4.625% 29/12/2006 IBM EMTN 6.125% 28/6/2006 Swiss Re American Holding EMTN 5.625% 30/8/2005
Total Portfolio Other Net Assets Total Net Assets (£)
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
119
Strategic Allocation Fund (Euro) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
COMMON / PREFERRED STOCKS (SHARES) Bermuda 2,600 18,957
Endurance Specialty Holdings Tyco International
81,088 461,030 ____________ 542,118 ____________
0.17 0.98 ______
130,521 ____________
0.28 ______
69,194 134,133 167,210 193,629 207,449 127,607 ____________
0.15 0.28 0.35 0.41 0.44 0.27 ______
899,222 ____________
1.90 ______
185,342 ____________
0.39 ______
142,179 ____________
0.30 ______
42,951 86,973 64,732 ____________
0.09 0.18 0.14 ______
194,656 ____________
0.41 ______
240,517 303,012 209,340 531,597 ____________
0.51 0.64 0.44 1.13 ______
1,284,466 ____________
2.72 ______
238,280 ____________
0.51 ______
1.15 ______
Brazil 6,200
CVRD – Cia Vale do Rio Doce ADR
Canada 18,700 3,450 3,094 6,712 6,600 4,500
Abitibi-Consolidated Niko Resources Petro-Canada Shoppers Drug Mart Talisman Energy Teck Cominco ‘B’
Cayman Islands 4,960
ACE
Denmark 3,380
Novo-Nordisk ‘B’
Holding 3,300 2,300 700 2,600 2 26 8,000 11,600 46 16,000 6,000 300 8,000 1,500 900 19 600 1,200 1,500 17,000 3,500 5,900 11,000
Finland 1,865 1,762 6,101
Cargotec ‘B’ Kone ‘B’ Stora Enso ‘R’
France 11,508 5,316 3,074 2,715
AXA BNP Paribas Sanofi-Aventis Total
Description Denso FamilyMart Funai Electric JSR Millea Holdings Mitsubishi Tokyo Financial Group Mitsui & Co Nissan Motor NTT DoCoMo Obayashi Onward Kashiyama ORIX Ricoh Secom Sumisho Computer Systems Sumitomo Mitsui Financial Group Takefuji THK TIS Tokyo Gas Toyota Industries Toyota Motor Yokohama Rubber
E.ON
Amdocs
276,027 ____________
0.58 ______
Allied Irish Banks
187,937 ____________
0.40 ______
Enel ENI Fastweb
141,707 119,197 114,336 ____________
0.30 0.25 0.24 ______
375,240 ____________
0.79 ______
46,278 75,299 73,865 62,451 148,810 84,500
0.10 0.16 0.16 0.13 0.31 0.18
Japan 5,000 7,600 4,400 13,000 3,400 11,000
120
4.30 ______
SES Global FDR
96,231 ____________
0.20 ______
289,515 271,060 118,872 127,223 ____________
0.62 0.57 0.25 0.27 ______
806,670 ____________
1.71 ______
178,327 229,749 ____________
0.38 0.48 ______
408,076 ____________
0.86 ______
222,115 ____________
0.47 ______
88,883 ____________
0.19 ______
159,507 60,740 79,122 305,809 188,844 78,065 105,882 63,219 192,346 384,702 ____________
0.34 0.13 0.17 0.65 0.40 0.17 0.22 0.13 0.41 0.80 ______
1,618,236 ____________
3.42 ______
Netherlands 14,178 11,564 3,600 6,064
ABN AMRO Holding ING Groep Royal Numico TNT
Norway 20,600 13,618
DNB NOR Statoil
16,332
Telefonica
10,472
SKF ‘B’
Switzerland
Italy 19,627 5,604 3,200
2,032,404 ____________
Sweden
Ireland 10,511
0.13 0.12 0.13 0.10 0.05 0.39 0.13 0.20 0.12 0.15 0.13 0.08 0.22 0.11 0.04 0.23 0.07 0.04 0.09 0.11 0.17 0.37 0.08 ______
Spain
Guernsey 12,445
%
62,448 54,814 59,701 45,596 22,333 183,359 62,953 95,455 56,538 71,587 63,133 37,412 103,903 53,623 17,571 106,796 33,725 20,595 42,606 52,873 79,479 175,542 39,159 ____________
Luxembourg 7,830
Germany 3,220
Value (e)
Ajinomoto Asahi Breweries Bandai Bank of Yokohama Canon COMSYS Holdings
Merrill Lynch International Investment Funds
4,873 1,200 470 7,746 1,800 263 200 360 3,776 5,929
Credit Suisse Group Holcim Nobel Biocare Holding Novartis Roche Holdings (Pref) Schindler Holding Serono ‘B’ Straumann Holding Swiss Reinsurance UBS
Strategic Allocation Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
Taiwan 108,200 18,300 180,300
Chunghwa Telecom Compal Electronics GDR Far EasTone Telecommunications
182,248 75,289 191,580 ____________
0.39 0.16 0.40 ______
449,117 ____________
0.95 ______
164,792 285,251 49,705 42,281 220,965 244,403 123,884 105,311 85,428 207,472 260,187 161,393 53,479 222,686 177,247 254,029 208,955 398,083 141,562 156,524 103,231 ____________
0.35 0.60 0.11 0.09 0.47 0.52 0.26 0.22 0.18 0.44 0.55 0.34 0.11 0.47 0.38 0.54 0.44 0.84 0.30 0.33 0.22 ______
3,666,868 ____________
7.76 ______
United Kingdom 4,794 34,399 4,700 3,110 25,329 15,200 15,789 13,346 4,056 16,943 12,881 7,224 7,467 27,470 23,785 10,382 26,209 15,743 10,373 75,979 12,900
AstraZeneca Barclays Barratt Developments Berkeley Group Holdings BP British American Tobacco British Sky Broadcasting Cadbury Schweppes Finance Cobham Diageo GlaxoSmithKline Imperial Tobacco Group Johnston Press National Grid Transco Prudential Reckitt Benckiser Reed Elsevier Royal Bank of Scotland Group Smiths Group Vodafone Group William Hill
Holding 4,519 3,581 7,450 11,683 5,172 1,170 20,185 4,256 4,300 6,950 1,196 2,200 10,000 3,283 7,450 680 4,200 8,804 4,800 2,500 3,400 5,411 4,714 1,690 1,800 5,748 6,109 1,384
Description
Value (e)
%
244,992 175,040 237,107 256,414 189,875 50,406 419,907 188,159 116,167 162,739 79,690 56,040 170,620 147,702 171,172 53,538 190,282 346,508 117,372 132,880 71,266 179,349 203,715 110,896 71,979 155,524 256,400 81,392 ____________
0.52 0.37 0.50 0.54 0.40 0.11 0.89 0.40 0.25 0.34 0.17 0.12 0.36 0.31 0.36 0.11 0.40 0.73 0.25 0.28 0.15 0.38 0.43 0.24 0.15 0.33 0.54 0.17 ______
8,809,414 ____________ 22,654,002 ____________
18.64 ______ 47.93 ______
Oesterreichische Kontrollbank 1.8% 22/3/2010 264,534 Republic of Austria ‘2’ 4.65% 15/1/2018 ____________ 756,750 1,021,284 ____________
0.56 1.60 ______ 2.16 ______
Lexmark International ‘A’ Lowe’s Maxim Integrated Products MBNA McGraw-Hill Medtronic Microsoft Morgan Stanley Nextel Communications ‘A’ North Fork Bancorporation Omnicom Group Pall PanAmSat Holding PepsiCo Pfizer Phelps Dodge PNC Financial Services Group Praxair Ross Stores Smith International Sprint (FON Group) St Paul Travelers United Technologies Valero Energy Valspar Viacom ‘B’ Wachovia WellPoint
Total Common / Preferred Stocks (Shares)
USA 1,450 2,200 8,800 2,223 6,700 1,970 9,412 2,850 7,400 4,306 5,000 2,456 6,109 2,498 3,000 2,380 3,530 1,936 3,400 4,987 3,200 2,708 2,799 3,300 3,797 7,682 1,999 1,400 6,000
Abbott Laboratories AGCO Alcoa Altria Group American International Group Apache Bank of New York Caremark Rx Cisco Systems Clear Channel Communications ConocoPhillips Countrywide Financial Dell DR Horton Lilly (Eli) & Co EOG Resources Estee Lauder ‘A’ Exxon Mobil Fannie Mae First Data First Horizon National Gannett Grainger (WW) Guidant IBM International Game Technology ITT Industries Kinetic Concepts Lam Research
58,945 35,693 191,314 120,591 325,552 106,572 228,742 105,173 119,078 110,829 240,793 78,879 201,471 78,011 139,076 111,913 113,724 93,540 165,065 165,544 113,762 161,276 127,738 186,268 236,179 178,542 162,494 70,197 145,322
0.13 0.08 0.40 0.26 0.69 0.23 0.48 0.22 0.25 0.23 0.51 0.17 0.43 0.17 0.29 0.24 0.24 0.20 0.35 0.35 0.24 0.34 0.27 0.39 0.50 0.38 0.34 0.15 0.31
BONDS Austria ¥33,000,000 e668,000
Canada C$229,000
Canadian Government ‘WL43’ 5.75% 1/6/2029
187,426 ____________
0.40 ______
43,079 ____________
0.09 ______
600,848 3,302,971 440,568 365,154 574,662 811,786 32,785 276,819 16,291 2,165,686 175,635
1.27 6.99 0.93 0.77 1.22 1.72 0.07 0.59 0.03 4.58 0.37
France e42,000
French Treasury Note BTAN 4.5% 12/7/2006
Germany ¥78,000,000 e3,300,000 e391,000 e322,000 e483,000 e771,000 e30,000 e261,000 e16,000 e2,099,000 e170,000
Bayerische Landesbank EMTN 1% 20/9/2010 Germany 2.5% 16/9/2005 Germany ‘00’ 5.25% 4/7/2010 Germany ‘00’ 5.25% 4/1/2011 Germany ‘03’ 4.75% 4/7/2034 Germany ‘04’ 3.75% 4/1/2015 Germany ‘04’ 4.25% 4/7/2014 Germany ‘05’ 4% 4/1/2037 Germany ‘137’ 5% 17/2/2006 Germany ‘139’ 4% 16/2/2007 Germany ‘144’ 3.25% 17/4/2009
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
121
Strategic Allocation Fund (Euro)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding e840,000 e80,000
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (e)
%
Germany ‘145’ 3.5% 10/9/2009 876,538 ThyssenKrupp EMTN 4.375% 18/3/2015 ____________ 80,284
1.86 0.17 ______
9,720,027 ____________
20.57 ______
Description
Value (e)
%
ABN Amro Bank/Chicago 7.3% 1/12/2026 128,624 General Electric Capital 0.1% 20/12/2005 989,714 KFW International Finance EMTN 2.05% 21/9/2009 629,813 Raytheon 6.75% 15/8/2007 26,143 Socgen Real Estate ‘144A’ 7.64% 30/9/2007 (Perpetual) 80,776 US Treasury 3.125% 31/1/2007 24,695 US Treasury 3.375% 15/2/2008 634,395 US Treasury 3.5% 15/2/2010 692,928 US Treasury 4.125% 15/5/2015 301,966 US Treasury 4.25% 15/11/2014 155,266 US Treasury 5.375% 15/2/2031 48,708 US Treasury 6.125% 15/8/2029 52,694 US Treasury 6.25% 15/5/2030 214,960 US Treasury 8% 15/11/2021 381,449 US Treasury 9.125% 15/5/2018 284,309 US Treasury Bill 0% 7/7/2005 207,256 Washington Mutual 4.375% 15/1/2008 24,992 Yum! Brands 7.65% 15/5/2008 81,107 ____________
0.27 2.09
0.17 0.05 1.34 1.48 0.64 0.33 0.10 0.11 0.45 0.81 0.60 0.44 0.05 0.17 ______
Total Bonds
4,959,795 ____________ 19,733,824 ____________
10.49 ______ 41.76 ______
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
42,387,826 ____________
89.69 ______
3 ____________ 3 ____________
0.00 ______ 0.00 ______
42,387,829
89.69
4,871,272 ____________ 47,259,101 ____________
10.31 ______ 100.00 ______
Holding
US dollar US$150,000 ¥132,000,000 ¥78,000,000
International ¥24,000,000
European Investment Bank 1.4% 20/6/2017
181,819 ____________
0.39 ______
Japan ¥80,000,000 ¥73,000,000 e100,000 e50,000
Development Bank of Japan 1.4% 20/6/2012 Development Bank of Japan 1.7% 20/9/2022 Resona Bank EMTN 3.75% 15/4/2015 Sumitomo Mitsui Banking 4.375% 27/10/2014
627,616
1.33
549,448 100,883
1.16 0.21
52,509 ____________ 1,330,456 ____________
0.11 ______ 2.81 ______
517,879 ____________
1.10 ______
Jersey ¥68,000,000
ASIF III Jersey EMTN 0.95% 15/7/2009
Description
US$30,000 US$91,000 US$30,000 US$770,000 US$845,000 US$360,000 US$183,000 US$50,000 US$50,000 US$200,000 US$320,000 US$230,000 US$250,000 US$30,000 US$90,000
Netherlands e30,000 £70,000 e325,000
Deutsche Telekom International Finance 7.5% 29/5/2007 ICI Investments Netherlands 7.625% 21/8/2007 Netherlands Government Bond 5.5% 15/7/2010
32,862
0.07
109,775
0.23
369,915 ____________ 512,552 ____________
0.78 ______ 1.08 ______
AIB UK 1 4.781% 17/12/2014 (Perpetual) 59,763 British Sky Broadcasting 6.875% 23/2/2009 71,426 British Telecommunications 6.375% 15/2/2006 41,002 MBNA Europe Funding EMTN 6% 12/11/2010 15,733 mmO2 EMTN 6.375% 25/1/2007 31,794 UK Treasury 5% 9/7/2014 1,039,789 ____________
0.13
0.03 0.07 2.20 ______
1,259,507 ____________
2.67 ______
1.33 0.06
Unquoted Securities
United Kingdom e60,000 US$80,000 e40,000 £10,000 e30,000 £658,000
122
Merrill Lynch International Investment Funds
0.15 0.09
COMMON STOCKS (SHARES) USA 3,300
World Access (Restricted)
Total Unquoted Securities Total Portfolio Other Net Assets Total Net Assets (e)
Strategic Allocation Fund (Euro)
continued
Sector Breakdown as at 30 June 2005
Fixed interest Finance Consumer discretionary Capital goods Energy Healthcare Information technology Consumer staples Telecommunication services Materials Utilities Other net assets
Open Forward Foreign Exchange Transactions as at 30 June 2005
% of net assets 41.8 12.5 5.4 5.2 5.1 5.1 4.9 3.5 2.7 2.1 1.4 10.3 ____________
Purchases e2,004,433 US$1,213,170 A$1,590,000 e423,988 C$420,000 e1,535,112 CHF2,854,000 e1,668,108 £817,000 e5,856,335 ¥224,841,000 e10,581,129 US$10,014,150
100.0 ____________
Open Futures Contracts as at 30 June 2005 Number of Contracts 13 (39) 1 16 1 (6) 1
Issuer Eurex Euro Bund DJ Euro Stoxx 50 Euro DTB BOBL Nikkei 225 (Simex) Japanese Government Bond (TSE) US Treasury 10 Year Note US Treasury 5 Year Note
Total commitment
Net unrealised loss
Expiration Value date e September 2005 1,603,940 September 2005 (1,248,000) September 2005 115,590 September 2005 693,088 September 2005 1,058,218 September 2005 (564,631) September 2005 __________ 90,347 1,748,552 __________
Sales US$2,500,000 A$1,590,000 e994,770 C$680,000 e261,637 CHF2,365,000 e1,855,508 £1,143,000 e1,212,449 ¥809,996,000 e1,653,970 US$13,508,947 e6,935,327
Value date 8/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005 14/7/2005
Unrealised profit/(loss) e (68,993) 4,423 6,808 (33,452) 20,900 7,695 (12,275) (31,016) 2,061 (217,114) 31,916 (620,941) 362,739 ________ (547,249) ________
Note: The net unrealised loss attributed to these transactions is included in Other Net Assets (see Note 2c).
Note: The net unrealised loss of e4,985 attributed to these transactions is included in Other Net Assets (see Note 2c).
Written Call Options as at 30 June 2005 Par Value Subject to Call e
Unrealised profit
Value
e
e
34,400 ____________ 34,400 ____________
(8,709) _______ (8,709) _______
Issuer
(50) S&P 500 Call Option strike price US$1225 expiring on 16/7/2005 Total Written Call Options
Note: Written Call Options are included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
123
Strategic Allocation Fund (US Dollar) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
COMMON / PREFERRED STOCKS (SHARES) Bermuda 3,500 28,746
Endurance Specialty Holdings Tyco International
CVRD – Cia Vale do Rio Doce ADR
0.17 1.07 ______
974,432 ____________
1.24 ______
230,958 ____________
0.29 ______
121,340 239,053 306,230 350,580 367,576 222,220 ____________
0.15 0.30 0.39 0.45 0.47 0.28 ______
1,606,999 ____________
2.04 ______
310,845 ____________
0.39 ______
233,282 ____________
0.29 ______
70,492 142,635 107,443 ____________
0.09 0.18 0.14 ______
320,570 ____________
0.41 ______
432,614 495,306 271,333 755,583 ____________
0.55 0.63 0.34 0.96 ______
1,954,836 ____________
2.48 ______
374,684 163,608 ____________
0.47 0.21 ______
538,292 ____________
0.68 ______
17,714
357,816 ____________
0.45 ______
19,160
201,586 111,107 211,063 ____________
0.25 0.14 0.27 ______
523,756 ____________
0.66 ______
66,950 131,388 121,431 115,830 263,824 138,914
0.08 0.17 0.15 0.15 0.33 0.18
6,800 1,648 680 7,937 1,800 420 300 550 5,700 7,310
Canada 27,200 5,100 4,700 10,080 9,700 6,500
Abitibi-Consolidated Niko Resources Petro-Canada Shoppers Drug Mart Talisman Energy Teck Cominco ‘B’
Cayman Islands 6,900
ACE
Denmark 4,600
Novo-Nordisk ‘B’
4,700 3,300 1,200 4,000 3 40 12,000 16,700 79 22,000 8,000 550 13,000 2,000 1,300 32 900 1,700 2,200 25,000 5,000 10,200 17,000
131,600 842,832 ____________
Brazil 9,100
Holding
Finland 2,539 2,397 8,400
Cargotec ‘B’ Kone ‘B’ Stora Enso ‘R’
France 17,170 7,208 3,305 3,201
AXA BNP Paribas Sanofi-Aventis Total
Description
Value (US$)
%
Denso FamilyMart Funai Electric JSR Millea Holdings Mitsubishi Tokyo Financial Group Mitsui & Co Nissan Motor NTT DoCoMo Obayashi Onward Kashiyama ORIX Ricoh Secom Sumisho Computer Systems Sumitomo Mitsui Financial Group Takefuji THK TIS Tokyo Gas Toyota Industries Toyota Motor Yokohama Rubber
107,224 94,814 123,383 84,568 40,387 340,080 113,842 165,673 117,058 118,667 101,482 82,689 203,551 86,195 30,597 216,842 60,987 35,174 75,334 93,739 136,881 365,866 72,958 ____________
0.14 0.12 0.16 0.11 0.05 0.43 0.14 0.21 0.15 0.15 0.13 0.10 0.26 0.11 0.04 0.27 0.08 0.04 0.10 0.12 0.17 0.46 0.09 ______
3,706,328 ____________
4.69 ______
156,547 ____________
0.20 ______
467,728 420,761 199,036 257,982 ____________
0.59 0.53 0.25 0.33 ______
1,345,507 ____________
1.70 ______
306,833 378,726 ____________
0.39 0.48 ______
685,559 ____________
0.87 ______
290,428 ____________
0.37 ______
196,055 ____________
0.25 ______
268,337 100,563 138,006 377,762 227,662 150,292 191,469 116,438 350,039 571,805 ____________
0.34 0.13 0.18 0.48 0.29 0.19 0.24 0.15 0.44 0.72 ______
2,492,373 ____________
3.16 ______
Luxembourg 10,566
SES Global FDR
Netherlands 19,000 14,890 5,000 10,200
ABN AMRO Holding ING Groep Royal Numico TNT
Norway 29,400 18,620
DNB NOR Statoil
Germany 4,200 1,925
E.ON Fresenius Medical Care
Spain
Ireland 16,600
Allied Irish Banks
Sweden
Italy 23,160 4,333 4,900
Enel ENI Fastweb
124
SKF ‘B’
Switzerland
Japan 6,000 11,000 6,000 20,000 5,000 15,000
Telefonica
Ajinomoto Asahi Breweries Bandai Bank of Yokohama Canon COMSYS Holdings
Merrill Lynch International Investment Funds
Credit Suisse Group Holcim Nobel Biocare Holding Novartis Roche Holdings (Pref) Schindler Holding Serono ‘B’ Straumann Holding Swiss Reinsurance UBS
Strategic Allocation Fund (US Dollar)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Taiwan 160,000 25,200 266,000
Chunghwa Telecom Compal Electronics GDR Far EasTone Telecommunications
324,908 124,992 340,756 ____________
0.41 0.16 0.43 ______
790,656 ____________
1.00 ______
203,046 425,038 59,919 47,527 154,307 391,539 188,413 159,997 145,205 334,747 277,590 250,468 90,869 352,261 280,046 412,946 354,537 597,454 294,482 147,808 183,289 ____________
0.26 0.54 0.08 0.06 0.20 0.50 0.24 0.20 0.18 0.42 0.35 0.32 0.11 0.45 0.35 0.52 0.45 0.76 0.37 0.19 0.23 ______
5,351,488 ____________
6.78 ______
137,277 64,548 359,077 267,748 484,261 615,090 202,182 424,850 240,246 258,059 179,757 470,286 159,526 407,063 145,329 187,077 194,511 344,782 333,621 315,758 197,156 299,406 225,582 340,931 492,084 316,290 352,800 114,855
0.17 0.08 0.45 0.34 0.61 0.78 0.26 0.54 0.30 0.33 0.23 0.60 0.20 0.52 0.18 0.24 0.25 0.44 0.42 0.40 0.25 0.38 0.29 0.43 0.62 0.40 0.45 0.15
United Kingdom 4,900 42,519 4,700 2,900 14,673 20,200 19,920 16,820 5,719 22,677 11,400 9,300 10,525 36,047 31,174 14,000 36,889 19,600 17,900 59,518 19,000
AstraZeneca Barclays Barratt Developments Berkeley Group Holdings BP British American Tobacco British Sky Broadcasting Cadbury Schweppes Finance Cobham Diageo GlaxoSmithKline Imperial Tobacco Group Johnston Press National Grid Transco Prudential Reckitt Benckiser Reed Elsevier Royal Bank of Scotland Group Smiths Group Vodafone Group William Hill
Holding 9,100 6,230 5,000 5,376 11,100 17,950 8,978 2,300 34,488 7,740 7,500 10,610 1,601 3,000 15,800 5,706 14,603 1,000 7,300 13,180 8,100 3,500 4,700 7,900 7,688 2,700 2,400 10,388 10,470 1,820
Description
Value (US$)
%
Lam Research Lexmark International ‘A’ Lilly (Eli) & Co Lowe’s Maxim Integrated Products MBNA McGraw-Hill Medtronic Microsoft Morgan Stanley Nextel Communications ‘A’ North Fork Bancorporation Omnicom Group Pall PanAmSat Holding PepsiCo Pfizer Phelps Dodge PNC Financial Services Group Praxair Ross Stores Smith International Sprint (FON Group) St Paul Travelers United Technologies Valero Energy Valspar Viacom ‘B’ Wachovia WellPoint
265,720 407,193 279,450 316,808 425,907 474,957 397,366 119,462 864,958 412,542 244,275 299,520 128,608 92,130 325,006 309,493 404,503 94,920 398,726 625,390 238,788 224,280 118,769 315,684 400,545 213,597 115,704 338,857 529,782 129,038 ____________
0.34 0.52 0.35 0.40 0.54 0.60 0.50 0.15 1.10 0.52 0.31 0.38 0.16 0.12 0.41 0.39 0.51 0.12 0.50 0.79 0.30 0.28 0.15 0.40 0.51 0.27 0.15 0.43 0.67 0.16 ______
17,642,130 ____________ 39,708,857 ____________
22.34 ______ 50.29 ______
1,413,514 ____________
1.79 ______
334,504 ____________
0.42 ______
863,858 ____________
1.09 ______
252,252 ____________
0.32 ______
2,205,721 1,711,554 447,045 798,922 1,396,251 59,286 861,784 3,660,637 402,358
2.79 2.17 0.57 1.01 1.77 0.08 1.09 4.64 0.51
USA 2,801 3,300 13,700 4,094 18,110 10,500 3,100 14,500 5,400 13,302 5,793 8,100 4,120 10,238 3,860 3,300 5,008 5,919 5,700 7,890 4,600 4,170 4,100 5,010 6,562 11,288 3,600 1,900
Abbott Laboratories AGCO Alcoa Altria Group Amdocs American International Group Apache Bank of New York Caremark Rx Cisco Systems Clear Channel Communications ConocoPhillips Countrywide Financial Dell DR Horton EOG Resources Estee Lauder ‘A’ Exxon Mobil Fannie Mae First Data First Horizon National Gannett Grainger (WW) Guidant IBM International Game Technology ITT Industries Kinetic Concepts
Total Common / Preferred Stocks (Shares)
BONDS Austria e1,035,000
Republic of Austria ‘2’ 4.65% 15/1/2018
Canada C$339,000
Canadian Government ‘WL43’ 5.75% 1/6/2029
Finland e700,000
Republic of Finland 3% 4/7/2008
France e204,000
French Treasury Note BTAN 4.5% 12/7/2006
Germany e1,828,000 e1,260,000 e327,000 e557,000 e1,100,000 e45,000 e674,000 e2,943,000 e321,000
Germany Germany Germany Germany Germany Germany Germany Germany Germany
2.5% 16/9/2005 ‘00’ 5.25% 4/7/2010 ‘00’ 5.25% 4/1/2011 ‘03’ 4.75% 4/7/2034 ‘04’ 3.75% 4/1/2015 ‘04’ 4.25% 4/7/2014 ‘05’ 4% 4/1/2037 ‘139’ 4% 16/2/2007 ‘143’ 3.5% 10/10/2008
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
125
Strategic Allocation Fund (US Dollar)
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding e250,000 e320,000 e120,000
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
311,376 402,555
0.39 0.51
145,179 ____________ 12,402,668 ____________
0.18 ______ 15.71 ______
US$100,000
1,461,296 ____________
1.85 ______
1,472,572 ____________
1.87 ______
Resona Bank EMTN 3.75% 15/4/2015 182,429 Sumitomo Mitsui Banking 4.375% 27/10/2014 63,302 ____________
0.23
US$30,000 US$1,090,000 US$1,180,000 US$780,000 US$284,000 US$174,000 US$20,000 US$20,000 US$405,000 US$956,000 US$320,000 US$500,000 US$1,400,000 US$100,000 US$130,000
Germany ‘144’ 3.25% 17/4/2009 Germany ‘145’ 3.5% 10/9/2009 ThyssenKrupp EMTN 4.375% 18/3/2015
International ¥160,000,000
European Investment Bank 1.4% 20/6/2017
Italy ¥160,000,000
Republic of Italy 0.65% 20/3/2009
Japan e150,000 e50,000
245,731 ____________
0.08 ______ 0.31 ______
Netherlands e80,000 £90,000 e1,133,000 e230,000
Deutsche Telekom International Finance 7.5% 29/5/2007 105,645 ICI Investments Netherlands 7.625% 21/8/2007 170,141 Netherlands Government Bond 3.75% 15/7/2014 1,436,835 Netherlands Government Bond 5.25% 15/7/2008 301,817 ____________ 2,014,438 ____________
0.13
US$120,000 e170,000 £30,000 e100,000 £959,000
126
AIB UK 1 4.781% 17/12/2014 (Perpetual) 120,078 British Sky Broadcasting 6.875% 23/2/2009 129,167 British Telecommunications 6.375% 15/2/2006 210,077 MBNA Europe Funding EMTN 6% 12/11/2010 56,896 mmO2 EMTN 6.375% 25/1/2007 127,765 UK Treasury 5% 9/7/2014 1,826,837 ____________ 2,470,820 ____________
Merrill Lynch International Investment Funds
Description
1.82 0.38 ______ 2.55 ______
Value (US$)
%
US dollar US$210,000
ABN Amro Bank/Chicago 7.3% 1/12/2026 217,097 AIG SunAmerica Global Financing VII 5.85% 1/8/2008 104,562 Raytheon 6.75% 15/8/2007 94,556 Socgen Real Estate ‘144A’ 7.64% 30/9/2007 (Perpetual) 140,190 US Treasury 3.125% 31/1/2007 29,773 US Treasury 3.375% 15/2/2008 1,082,677 US Treasury 3.5% 15/2/2010 1,166,586 US Treasury 4.125% 15/5/2015 788,775 US Treasury 4.25% 15/11/2014 290,501 US Treasury 5% 15/8/2011 185,514 US Treasury 5.375% 15/2/2031 23,489 US Treasury 6.125% 15/8/2029 25,411 US Treasury 6.25% 15/5/2030 524,791 US Treasury 8% 15/11/2021 1,373,877 US Treasury 9.125% 15/5/2018 476,888 US Treasury Bill 0% 18/8/2005 498,033 US Treasury Bill 0% 8/9/2005 1,391,738 Washington Mutual 4.375% 15/1/2008 100,434 Yum! Brands 7.65% 15/5/2008 141,241 ____________
0.18 0.04 1.37 1.48 1.00 0.37 0.24 0.03 0.03 0.66 1.74 0.60 0.63 1.76 0.13 0.18 ______
Total Bonds
8,656,133 ____________ 31,587,786 ____________
10.97 ______ 40.01 ______
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
71,296,643 ____________
90.30 ______
24 ____________ 24 ____________
0.00 ______ 0.00 ______
71,296,667
90.30
7,655,759 ____________ 78,952,426 ____________
9.70 ______ 100.00 ______
US$90,000 US$131,000
0.22
United Kingdom e100,000
Holding
0.28 0.13 0.12
Unquoted Securities 0.15
COMMON STOCKS (SHARES) 0.16 0.27
USA 24,000
World Access (Restricted)
Total Unquoted Securities 0.07 0.16 2.32 ______
Total Portfolio
3.13 ______
Total Net Assets (US$)
Other Net Assets
Strategic Allocation Fund (US Dollar)
continued
Sector Breakdown as at 30 June 2005
Fixed interest Finance Consumer discretionary Industrial Information technology Healthcare Energy Consumer staples Telecommunication services Materials Utilities Other net assets
Open Forward Foreign Exchange Transactions as at 30 June 2005
% of net assets 40.0 13.9 5.7 5.7 5.4 4.9 4.9 3.5 2.7 2.2 1.4 9.7 ____________
Purchases e2,726,029 US$330,941 US$18,269,677 e174,000 US$2,098,572 US$3,536,832 ¥61,042,000 Net unrealised profit
Sales US$3,400,000 C$415,000 e15,049,000 US$211,397 £1,162,000 ¥384,100,000 US$558,295
Value date 8/7/2005 18/8/2005 18/8/2005 18/8/2005 18/8/2005 18/8/2005 18/8/2005
Unrealised profit/(loss) US$ (113,278) (5,960) 100,423 (1,320) 17,782 53,312 (4,686) ________ 46,273 ________
Note: The net unrealised profit attributed to these transactions is included in Other Net Assets (see Note 2c).
100.0 ____________
Open Futures Contracts as at 30 June 2005 Number of Contracts 2 (40) (5) 4 16 (18) (6)
Issuer Eurex Euro Bund DJEuro Stoxx 50 FTSE 100 Japanese Government Bond (TSE) Nikkei 225 (Simex) US Treasury 10 Year Note US Treasury 30 Year Bond
Total commitment
Expiration Value date US$ September 2005 297,480 September 2005 (1,543,098) September 2005 (460,956) September 2005 5,103,009 September 2005 835,563 September 2005 (2,042,156) September 2005 __________ (710,625) 1,479,217 __________
Note: The net unrealised loss of US$7,040 attributed to these transactions is included in Other Net Assets (see Note 2c).
Written Call Options as at 30 June 2005 Par Value Subject to Call US$
Issuer
(530) S&P 500 Call Option strike price US$1,225 expiring on 16/7/2005 Total Written Call Options
Unrealised profit US$
Value US$
55,040 ____________ 55,040 ____________
(16,800) _______ (16,800) _______
Note: Written Call Options are included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
127
UK Focus Fund(2) Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (£)
%
COMMON STOCKS (SHARES) United Kingdom 11,236 24,000 17,300 6,129 5,675 11,101 38,136 3,833 10,490 12,613 17,283 3,435 4,601 (2)
Barclays BG Group British Airways British American Tobacco British Land British Sky Broadcasting Cable & Wireless Cairn Energy Enterprise Inns HBOS ICAP Land Securities Group Man Group
62,641 110,580 45,586 66,254 49,770 58,558 56,918 51,631 87,224 108,534 51,374 47,747 66,392
New Fund launched, see note 16, for further details.
Sector Breakdown as at 30 June 2005
Finance Consumer staples Telecommunication services Energy Consumer discretionary Materials Healthcare Capital goods Other net assets
% of net assets 28.5 20.9 15.0 14.2 11.6 4.0 2.9 2.8 0.1 ____________ 100.0 ____________
128
Merrill Lynch International Investment Funds
3.84 6.77 2.79 4.06 3.05 3.59 3.48 3.16 5.34 6.64 3.15 2.92 4.06
Holding 4,614 86,110 3,980 15,474 4,251 12,862 8,786 7,278 17,101 49,815 5,906
Description Next O2 Reckitt Benckiser Reuters Group Royal Bank of Scotland Group Shell Transport & Trading Smith & Nephew Standard Chartered Tesco Vodafone Group Xstrata
Total Portfolio Other Net Assets Total Net Assets (£)
Value (£)
%
69,902 118,832 65,471 61,509 72,267 69,946 48,103 74,963 54,737 68,994 63,941 ____________
4.28 7.28 4.01 3.77 4.42 4.28 2.95 4.59 3.35 4.22 3.91 ______
1,631,874
99.91
1,523 ____________ 1,633,397 ____________
0.09 ______ 100.00 ______
United Kingdom Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (£)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) United Kingdom 1,096,055 420,604 355,000 193,500 931,400 2,032,000 705,000 3,365,000 220,000 1,775,696 386,400 1,085,000 2,495,300 550,463 619,625 605,600 259,695 679,130 675,500 460,587 4,814,797 1,660,000 1,098,792 587,000 545,000 3,227,600 464,487
3i Group Admiral Group Anglo American AstraZeneca Augean Barclays BG Group BP Britannic Group British Airways British American Tobacco British Sky Broadcasting Cable & Wireless Cairn Energy Charter Chrysalis Group Daily Mail & General Trust ‘A’ Enterprise Inns GlaxoSmithKline Hammerson Hays HBOS HSBC Holdings ICAP IMI Innovation Group Intercontinental Hotels Group
7,433,993 1,568,853 4,668,250 4,471,785 1,602,008 11,328,399 3,248,288 19,735,725 1,118,700 4,678,959 4,176,984 5,723,375 3,724,235 7,414,737 1,879,632 894,774 1,711,390 5,646,966 9,173,290 4,050,863 6,235,162 14,284,300 9,806,719 1,744,858 2,271,288 1,017,017 3,274,633
2.59 0.55 1.63 1.56 0.56 3.94 1.13 6.87 0.39 1.63 1.45 1.99 1.30 2.58 0.65 0.31 0.60 1.97 3.19 1.41 2.17 4.97 3.41 0.61 0.79 0.35 1.14
Holding 246,667 650,000 958,800 745,000 1,420,822 767,300 302,500 7,110,000 1,201,446 513,000 1,230,000 436,000 828,885 4,127,800 1,500,000 1,021,000 694,000 1,901,052 1,000,000 412,600 1,295,000 15,126,600 572,765 1,437,900
Description IP2IPO Group Land Securities Group M&C Saatchi Man Group Melrose Mitie Group Next O2 Oilexco Paragon Group of Companies Prudential Reckitt Benckiser Regal Petroleum Regus Group Reuters Group Royal Bank of Scotland Group Serco Group Shell Transport & Trading St James’s Place Capital Standard Chartered Tesco Vodafone Group Xstrata Yell Group
Total Portfolio Other Net Assets Total Net Assets (£)
Value (£)
%
1,376,402 9,035,000 1,246,440 10,750,350 2,003,359 1,225,762 4,582,875 9,811,800 1,501,808 2,190,510 6,162,300 7,172,200 828,885 3,879,595 5,962,500 17,356,999 1,769,700 10,338,301 2,310,000 4,249,780 4,145,036 20,950,341 6,201,040 6,154,212 ____________
0.48 3.15 0.43 3.74 0.70 0.43 1.60 3.42 0.52 0.76 2.15 2.50 0.29 1.35 2.08 6.04 0.62 3.60 0.80 1.48 1.44 7.30 2.16 2.14 ______
284,090,378
98.92
3,103,353 ____________ 287,193,731 ____________
1.08 ______ 100.00 ______
Sector Breakdown as at 30 June 2005
Finance Energy Telecommunication services Consumer staples Capital goods Consumer discretionary Healthcare Materials Information technology Other net assets
% of net assets 33.1 15.0 12.0 11.1 10.3 8.1 4.7 4.2 0.4 1.1 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
129
US Basic Value Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Bermuda 1,346,500
Tyco International
39,479,380 ____________
1.91 ______
16,802,198 ____________
0.81 ______
19,724,640 ____________
0.96 ______
Koninklijke Philips Electronics (NY Shares) 31,208,760 Royal Dutch Petroleum (NY Shares) 33,673,472 Unilever (NY Shares) 25,850,500 ____________
1.51 1.63 1.26 ______
90,732,732 ____________
4.40 ______
10,255,319 35,142,951 ____________ 45,398,270 ____________
0.50 1.70 ______ 2.20 ______
10,172,924 22,296,714 25,772,293 18,314,362 40,285,466 21,707,784 15,727,733 44,510,074 41,734,920 31,321,745 23,805,306 10,527,034 36,236,554 27,277,140 24,176,859 31,387,440 26,476,748 14,496,790 37,160,696 8,193,152 80,862,650 12,676,002
0.49 1.08 1.25 0.89 1.95 1.05 0.76 2.16 2.02 1.52 1.15 0.51 1.76 1.32 1.17 1.52 1.28 0.70 1.80 0.40 3.92 0.62
Canada 699,800
BCE
Cayman Islands 1,131,000
Seagate Technology
Netherlands 1,221,000 515,200 397,700
United Kingdom 246,700 719,700
AstraZeneca ADR GlaxoSmithKline ADR
USA 2,810,200 966,900 983,300 305,800 687,700 264,600 964,300 967,400 1,424,400 839,500 894,600 198,100 773,459 1,221,000 809,400 471,000 494,800 196,700 839,600 423,200 1,388,200 841,700 (*) (†)
3Com Agilent Technologies Alcoa Allstate American International Group Anadarko Petroleum Applied Materials Bank of America Bank of New York Baxter International BellSouth BJ Services Citigroup Coca-Cola Enterprises Comcast ‘A’ Deere & Co* Diamond Offshore Drilling Dominion Resources EI Du Pont de Nemours & Co Electronic Data Systems Exxon Mobil Fairchild Semiconductor International
Securities lent, see note 12 for further details. Underlying securities, see note 13 for further details.
130
Merrill Lynch International Investment Funds
Holding
Description
1,178,400 1,070,900 535,100 927,800 1,118,100 512,800 280,600 1,580,800 977,900 591,300 1,137,700 2,092,800 1,980,100 670,400 910,200 3,416,800 5,102,300 868,400 790,800 589,100 739,200 1,812,300 670,900 814,800 423,100 1,244,300 1,125,100 1,387,700 1,062,800 569,900 1,110,692 5,155,100 3,004,500 4,103,400 815,900 374,100 519,200 1,198,600 869,100
Gap* General Electric* General Mills Genworth Financial ‘A’ GlobalSantaFe Halliburton Hartford Financial Services Group Hewlett-Packard† Honeywell International IBM International Paper Interpublic Group of Companies JPMorgan Chase & Co* Kimberly-Clark Kraft Foods ‘A’* Liberty Media ‘A’ LSI Logic McDonald’s Mellon Financial Micron Technology Morgan Stanley*† Motorola Novellus Systems Pfizer Public Service Enterprise Group Raytheon* Sara Lee SBC Communications Schering-Plough Southern St Paul Travelers Sun Microsystems Time Warner Unisys Verizon Communications Viacom ‘B’ Wachovia Walt Disney Wells Fargo & Co
Total Portfolio Other Net Assets Total Net Assets (US$)
Value (US$)
%
23,638,704 37,577,881 25,096,190 28,084,506 45,495,489 24,686,192 21,322,794 37,765,312 36,035,615 44,341,587 35,314,208 25,385,664 71,006,386 42,456,432 28,862,442 34,919,696 44,441,033 24,315,200 22,719,684 6,126,640 39,399,360 33,726,903 16,725,537 22,569,960 25,369,076 49,012,977 22,186,972 33,138,276 20,745,856 19,792,627 44,383,252 19,383,176 50,355,420 25,810,386 28,385,161 12,203,142 26,271,520 30,696,146 53,875,509 _____________
1.15 1.82 1.22 1.36 2.21 1.20 1.03 1.83 1.75 2.15 1.71 1.23 3.44 2.06 1.40 1.69 2.16 1.18 1.10 0.30 1.91 1.64 0.81 1.10 1.23 2.38 1.08 1.61 1.01 0.96 2.15 0.94 2.44 1.25 1.38 0.59 1.27 1.49 2.61 ______
1,838,743,297 _____________ 2,050,880,517
89.16 ______ 99.44
11,532,488 _____________ 2,062,413,005 _____________
0.56 ______ 100.00 ______
US Basic Value Fund
continued
Hedged Share Class Open Forward Foreign Exchange Transactions as at 30 June 2005
Sector Breakdown as at 30 June 2005 % of net assets Finance Information technology Consumer discretionary Energy Capital goods Materials Consumer staples Telecommunication services Utilities Industrials Healthcare Other net assets
23.6 16.9 10.9 9.6 9.4 9.1 8.3 5.0 2.9 2.2 1.5 0.6 ____________
Purchases e37,760,003 US$8,205,300 Net unrealised loss
Sales US$48,310,051 e6,580,071
Unrealised profit/(loss) Value date e 16/8/2005 (2,255,928) 16/8/2005 __________ 216,501 (2,039,427) __________
Note: The US$ equivalent - US$2,458,622 - of the net unrealised loss attributed to these transactions is included in Other Net Assets (see Note 2c). As at the 30 June 2005, the exchange rate used to convert from e is: 1 US$ = 0.8295 Euros.
100.0 ____________
Written Call Options as at 30 June 2005 Par Value Subject to Call US$
Issuer
(2,536) Morgan Stanley Call Option Strike Price US$55 expiring on 16/7/2005 (2,000) Hewlet Packard Call Option Strike Price US$22.5 expiring on 20/8/2005 Total Written Call Options
Unrealised profit US$
Value US$
161,587
(101,400)
142,807 ____________ 304,394 ____________
(360,000) _______ (461,400) _______
Note: Written Call Options are included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
131
US Dollar Core Bond Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
France e200,000
France Telecom FRN 1/3/2011
231,640 ____________
0.21 ______
Germany ‘143’ 3.5% 10/10/2008
586,537 ____________
0.52 ______
International US$295,000
Corporacion Andina de Fomento 6.875% 15/3/2012
Koninklijke KPN 8% 1/10/2010
US$205,000
Barclays Bank ‘144A’ 8.55% 18/9/2049
331,389 ____________
0.30 ______
144,079 ____________
0.13 ______
245,646 ____________
0.22 ______
United Kingdom
US$130,000 US$90,000 US$25,000 US$152,007 US$400,000 US$45,000 US$250,000 US$165,000 US$130,000 US$240,000 US$650,000 US$105,000 US$175,000 US$800,000 US$74,000 US$515,000
US$400,000 US$175,000 US$60,000 US$152,006 US$104,072 US$184,222 US$260,000 US$800,000 US$380,000 US$240,000
132
Abgenix 3.5% 15/3/2007 AEP Texas Central ‘D’ 5.5% 15/2/2013 Alabama Power Capital Trust V 5.5% 1/10/2042 Alltel 4.656% 17/5/2007 Amerada Hess 7.125% 15/3/2033 Ameren 4.263% 15/5/2007 American Airlines ‘AMBC’ 3.857% 9/7/2010 American Greetings 6.1% 1/8/2028 American Honda Finance MTN FRN 3/10/2005 Ameriquest Mortgage Securities 4.04% 25/2/2034 AON 6.95% 15/1/2007 Aramark Services 5% 1/6/2012 Aramark Services 6.375% 15/2/2008 Argent Securities ‘2004-R1 M2’ FRN 25/11/2034 Bac Cap Trust 5.625% 8/3/2035 Bank of America 4.875% 15/9/2012 Bank of America Large Loan FRN 15/11/2015 Bank One 8% 29/4/2027 Bear Stearns Adjustable Rate Mortgage Trust ‘2004-4 A4’ 3.515% 25/6/2034 Bear Stearns Asset Backed Securities ‘2004-HE9 1A2’ FRN 25/3/2032 Bear Stearns FRN 30/1/2009 Bellsouth 6% 15/11/2034 California Infrastructure PG&E-1 ‘1997-1 A7’ 6.42% 25/9/2008 California Infrastructure SCE-1 ‘1997-1 A6’ 6.38% 25/9/2008 Capital Auto Receivables Asset Trust ‘2003-2 B’ FRN 15/1/2009 Capital One Bank 5.75% 15/9/2010 Capital One Master Trust ‘2000-4 C’ FRN 15/8/2008 Celestica 0% 1/8/2020 Cendant 7.375% 15/1/2013
Merrill Lynch International Investment Funds
US$260,000 US$195,000 US$15,000 US$185,000 US$100,000 US$235,000
USA US$430,000 US$345,000 US$140,000
US$1,400,000 US$84,859
Netherlands US$125,000
US$130,000 US$1,050,000
Germany e468,000
Holding US$127,884
BONDS
408,500 361,033
0.37 0.32
144,254 131,080 106,259 25,032
0.13 0.12 0.10 0.02
US$472,251 US$373,297 US$300,000 US$300,000
149,076 414,500
0.13 0.37
US$205,000
45,043
0.04
US$350,000
250,514 170,322 129,991 251,664
0.22 0.15 0.12 0.23
US$340,000 US$105,000 US$130,000 US$230,000 US$145,000 US$105,000 US$110,000 US$170,000 US$555,000 US$6,100 US$3,331,942 US$4,957,000 US$5,460,000 US$80,961
652,321 107,154 179,372
0.59 0.10 0.16
801,069 98,018
0.72 0.09
503,589
0.45
401,384 175,906 63,596
0.36 0.16 0.06
154,759
0.14
US$970,986
106,035
0.10
US$740,000
184,604 273,154
0.17 0.25
US$195,603
US$403,788
US$550,000 802,750 215,175 273,218
0.72 0.19 0.24
US$335,000
Description
Value (US$)
Centex Home Equity ‘2003-B AV’ FRN 25/6/2033 128,016 Champion International 6.65% 15/12/2037 144,579 Chase Credit Card Master Trust ‘2000-3 C’ FRN 15/1/2008 1,052,483 Chase Credit Card Master Trust ‘2003-1 C’ FRN 15/4/2008 1,407,326 CIT Group Home Equity Loan Trust ‘2003-1 A2’ 2.35% 20/4/2027 84,747 Citigroup 5.85% 11/12/2034 286,787 City of Dallas 5.25% 15/2/2024 (step-up coupon) 194,859 Comcast 5.85% 15/1/2010 15,838 Comcast Cable Communications Holdings 8.375% 15/3/2013 225,194 Consolidated Natural Gas ‘A’ 5% 1/12/2014 101,012 Continental Airlines ‘02-1’ 6.563% 15/2/2012 249,299 Countrywide Asset Backed Certificates ‘2003-BC3 A2’ FRN 25/9/2033 473,038 Countrywide Asset Backed Certificates ‘2004-5 A’ FRN 25/10/2034 375,200 Countrywide Asset Backed Certificates ‘2004-13 AF4’ 4.583% 25/1/2033 297,375 Countrywide Asset Backed Certificates ‘2004-13 MF1’ 5.071% 25/4/2035 299,725 Credit Suisse First Boston USA 4.7% 1/6/2009 208,158 Credit-Based Asset Servicing & Securitization ‘2005-CB2 AV2’ FRN 25/4/2036 349,891 CSX 6.75% 15/3/2011 376,783 Developers Diversified Realty MTN 6.625% 15/1/2008 109,796 Dominion Resources ‘B’ FRN 15/5/2006 130,313 DR Horton 5% 15/1/2009 231,088 DR Horton 5.625% 15/9/2014 145,670 DR Horton 6.875% 1/5/2013 114,114 Entergy Arkansas 5.66% 1/2/2025 114,851 Entergy Louisiana 5.09% 1/11/2014 169,670 Fannie Mae 7.125% 15/1/2030 756,301 Fannie Mae ‘O’ 0% 31/12/2049 338,245 Fannie Mae Pool ‘5 7/05’ 5% TBA 3,328,298 Fannie Mae Pool ‘5 7/05’ 5% TBA 5,008,893 Fannie Mae Pool ‘5.5 7/05’ 5.5% TBA 5,530,808 Fannie Mae Pool ‘555250’ 6.51% 1/2/2018 83,699 Fannie Mae Pool ‘679835’ 6.5% 1/11/2032 418,434 Fannie Mae Pool ‘725690’ 6% 1/8/2034 995,554 Fannie Mae Pool ‘735291’ 4.5% 1/3/2020 735,722 Fannie Mae Pool ‘735389’ 6.5% 1/12/2034 202,508 Federal Home Loan Bank System ‘4H06’ 2.75% 15/11/2006 542,010 First Data 4.5% 15/6/2010 337,661
% 0.11 0.13 0.94 1.26 0.08 0.26 0.17 0.01 0.20 0.09 0.22 0.42 0.34 0.27 0.27 0.19
0.31 0.34 0.10 0.12 0.21 0.13 0.10 0.10 0.15 0.68 0.30 2.99 4.49 4.96 0.08 0.38 0.89 0.66 0.18 0.49 0.30
US Dollar Core Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$800,000
US$80,000 US$200,000 US$1,469,225 US$56,731 US$789 US$397,690 US$176,906 US$2,249,777 US$799,612 US$72,686 US$71,878 US$146,108 US$1,500,000 US$205,000 US$149,245 US$1,100,000
US$200,000 US$375,000 US$508,388 US$500,000 US$700,000 US$130,000 US$270,000 US$165,000 US$204,867
US$250,000 US$586,634 US$437,036 US$69,215 US$105,000
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
First Franklin Mortgage Loan Asset Backed Certificates ‘2004-FF10 A2’ FRN 25/12/2032 Firstbank Puerto Rico 7.625% 20/12/2005 FirstEnergy ‘B’ 6.45% 15/11/2011 Freddie Mac (Gold) Pool ‘5 8/05’ 5% TBA Freddie Mac (Gold) Pool ‘A15695’ 7% 1/11/2033 Freddie Mac (Gold) Pool ‘A20431’ 6% 1/1/2034 Freddie Mac (Gold) Pool ‘A23500’ 6% 1/6/2034 Freddie Mac (Gold) Pool ‘A26501’ 5.5% 1/9/2034 Freddie Mac (Gold) Pool ‘A30721’ 5.5% 1/12/2034 Freddie Mac (Gold) Pool ‘B18315’ 5% 1/5/2020 Freddie Mac (Gold) Pool ‘C62770’ 7% 1/1/2032 Freddie Mac (Gold) Pool ‘E00987’ 6.5% 1/6/2016 Freddie Mac (Gold) Pool ‘E92152’ 5.5% 1/11/2017 Freddie Mac Discount Notes ‘RB’ 0% 5/7/2005 General Electric Capital MTNA 6.75% 15/3/2032 Ginnie Mae I Pool ‘542852’ 6.5% 15/6/2031 GMAC Commercial Mortgage Securities ‘2004-C3 AAB’ 4.702% 10/12/2041 Goldman Sachs Group 5.25% 15/10/2013 Goldman Sachs Group 5.7% 1/9/2012 Greenwich Capital Commercial ‘2003-FL1 A’ FRN 5/7/2018 GS Mortgage Securities II ‘2005-GG4 A2’ 4.475% 10/7/2039 GS Mortgage Securities II ‘2005-GG4 A4A’ 4.751% 10/7/2039 Harrah’s Operating ‘144A’ 5.625% 1/6/2015 Harris 6.35% 1/2/2028 Health Care Property Investors 6.5% 15/2/2006 HFC Home Equity Loan Asset Back Certificates ‘2002-2 A’ FRN 20/4/2032 Historic TW 9.125% 15/1/2013 Home Equity Asset Trust ‘2005-1 A2’ FRN 25/5/2035 Home Equity Asset Trust ‘2005-3 1A2’ FRN 25/8/2035 Household Automotive Trust ‘2003-3 A3A’ 2.75% 18/6/2007 HSBC Finance 5.875% 1/2/2009
%
Holding US$220,000 US$140,000
803,423
0.72 US$775,593
80,631 217,960
0.07 0.20 US$350,000
1,463,715
1.31
59,802
0.05
809
0.00
US$500,000
US$1,200,000 407,823
0.37
179,340
0.16
2,280,731
2.05
808,181
0.72
US$165,000 US$185,000 US$205,000 US$10,000 US$159,192
76,614
0.07
US$180,000
74,787
0.07
US$500,000
150,053
0.13
US$301,000 US$395,000
1,499,180
1.34
251,764
0.23
155,986
0.14
US$85,000 US$100,000 US$90,000 US$25,000 US$90,000
1,112,037
1.00 US$200,000
206,174 398,468
0.18 0.36
US$218,384
508,781
0.46
US$816,135
502,427
0.45
US$296,457
708,000
0.63
US$290,239
132,163 292,405
0.12 0.26
US$140,000 US$150,000
167,507
0.15 US$508,068
205,218 315,573
0.18 0.28
US$819,682 US$965,664
588,615
0.53
437,304
0.39
69,218 110,193
0.06 0.10
US$140,000 US$320,000 US$65,000
Value (US$)
%
HSBC Finance 6.5% 15/11/2008 234,729 Hudson United Bancorp 8.2% 15/9/2006 145,979 Impac Secured Assets CMN Owner Trust ‘2004-3 1A4’ FRN 25/11/2034 778,177 Impac Secured Assets CMN Owner Trust FRN ‘2004-3 M1’ FRN 25/12/2034 351,935 JP Morgan Chase Commercial Mortgage Securities ‘2005-LDP2 A2’ 4.575% 15/7/2042 503,850 JP Morgan Chase Commercial Mortgage Securities ‘2005-LDP2 A4’ 4.738% 15/7/2042 1,208,595 JPMorgan Chase & Co 4.75% 1/3/2015 164,968 JPMorgan Chase & Co 5.75% 2/1/2013 196,625 KB Home 5.75% 1/2/2014 203,630 KB Home 5.875% 15/1/2015 9,932 Kern River Funding ‘144A’ 4.893% 30/4/2018 162,809 Kinder Morgan Energy Partners 5.35% 15/8/2007 182,488 LB-UBS Commercial Mortgage Trust ‘2005-C3 A5’ 4.74% 15/7/2030 502,463 Lehman Brothers Holdings 7% 1/2/2008 321,750 Lenfest Communications 10.5% 15/6/2006 416,051 MBNA 4.625% 15/9/2008 85,770 MBNA MTN 5.625% 30/11/2007 103,028 Media General 6.95% 1/9/2006 92,567 Midamerica Energy Holdings 5.875% 1/10/2012 26,525 Montpelier Re Holdings 6.125% 15/8/2013 95,050 Morgan Stanley ABS Capital I ‘2003-NC5 M2’ FRN 25/4/2033 202,658 Morgan Stanley ABS Capital I ‘2004-WMC1 A3’ FRN 25/6/2034 218,452 Morgan Stanley ABS Capital I ‘2005-HE1 A2MZ’ FRN 25/12/2034 817,907 Morgan Stanley ABS Capital I ‘2005-NC2 A1MZ’ FRN 25/3/2035 296,639 Morgan Stanley ABS Capital I ‘2005-NC2 A2MZ’ FRN 25/3/2035 290,416 Motiva Enterprises ‘144A’ 5.2% 15/9/2012 144,142 Nationwide Health Properties MTNC 6.59% 7/7/2038 162,743 New Century Home Equity Loan Trust ‘2004-2 A3’ FRN 25/8/2034 508,504 New Century Home Equity Loan Trust ‘2004-3 A3’ FRN 25/11/2034 823,118 New Century Home Equity Loan Trust ‘2005-2 A2MZ’ FRN 25/6/2035 966,460 News America 6.75% 9/1/2038 158,580 NLV Financial ‘144A’ 7.5% 15/8/2033 368,039 North Front Pass-Through Trust ‘144A’ 5.81% 15/12/2024 66,881
Description
0.21 0.13
0.70
0.32
0.45
1.08 0.15 0.18 0.18 0.01 0.15 0.16 0.45 0.29 0.37 0.08 0.09 0.08 0.02 0.09 0.18 0.20 0.73 0.27 0.26 0.13 0.15 0.46 0.74 0.87 0.14 0.33 0.06
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
133
US Dollar Core Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$541,755 US$100,000 US$35,000 US$125,000 US$361,093 US$301,987 US$500,000 US$600,000 US$70,000 US$117,000 US$100,000
US$90,000 US$500,000 US$45,000 US$120,000 US$127,000 US$130,000 US$10,600 US$425,000 US$600,000 US$450,000 US$806,768 US$1,375,160 US$175,694 US$50,000 US$100,000 US$80,000 US$80,000 US$600,000 US$500,000 US$30,000 US$203,000 US$286,000 US$220,000 US$145,000 US$987,000
US$180,000
US$306,253
(‡)
Description
Value (US$)
Option One Mortgage Loan Trust ‘2003-4 A2’ FRN 25/7/2033 543,039 Option One Mortgage Loan Trust ‘2005-1 M5’ FRN 25/2/2035 100,484 Pacific Gas & Electric FRN 3/4/2006 35,000 Panhandle Eastern Pipe Line ‘B’ 2.75% 15/3/2007 121,782 Park Place Securities ‘2005-WCH1 A1B’ FRN 25/1/2036 361,404 Park Place Securities ‘2005-WCH1 A3D’ FRN 25/1/2036 302,675 Pemex Project Funding Master Trust ‘144A’ FRN 15/6/2010 516,250 Pinnacle West Energy ‘144A’ FRN 1/4/2007 600,343 PNC Funding 5.25% 15/11/2015 72,479 PNC Funding 6.125% 15/2/2009 124,217 Popular ABS Mortgage Pass-Through Trust ‘2005-1 M2’ 5.507% 25/5/2035 100,591 Popular North America MTNE 3.875% 1/10/2008 89,013 PPL Capital Funding FRN 18/5/2006 500,811 Prudential Financial 4.104% 15/11/2006 (step-up coupon) 45,145 Prudential Holdings ‘144A’ 8.695% 18/12/2023 158,417 Public Service Company of New Mexico 4.4% 15/9/2008 127,071 Puget Sound Energy 5.483% 1/6/2035 133,109 RC Trust (Unit) 3.5% 15/5/2006 544,245 Republic of Italy 4.5% 21/1/2015 427,210 Residential Asset Mortgage Products ‘2004-RS11 A2’ FRN 25/12/2033 602,478 Residential Asset Mortgage Products ‘2005-RS3 AIA2’ FRN 25/3/2035 451,364 Residential Asset Securities ‘2003-KS5 AIIB’ FRN 25/7/2033 808,735 RMAC ‘2003-NS2A A2C’ FRN 12/9/2035 1,379,027 Saxon Asset Securities Trust ‘2002-3 AV’ FRN 25/12/2032 175,924 Sealed Air ‘144A’ 5.375% 15/4/2008 50,620 Sempra Energy 4.621% 17/5/2007 100,518 Sempra Energy 6% 1/2/2013 84,833 Sempra Energy 7.95% 3/1/2010 90,776 Sigma Finance FRN 15/8/2011 600,000 Sigma Finance FRN 31/3/2014 505,740 Southern California Edison FRN 13/1/2006 30,041 Southern Power ‘B’ 6.25% 15/7/2012 221,467 Southwest Airlines 7.875% 1/9/2007 306,253 Sovereign Bank 5.125% 15/3/2013 224,058 Sprint Capital 8.75% 15/3/2032 200,887 Structured Asset Investment Loan Trust ‘2003-BC6 M1’ FRN 25/7/2033 993,731 Structured Asset Investment Loan Trust ‘2004-8 M4’ FRN 25/9/2034 180,610 Structured Asset Securities ‘2004-23XS 2A1’ FRN 25/1/2035 306,741
Securities held as collateral, see note 13 for further details.
134
Merrill Lynch International Investment Funds
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding US$365,879
0.49 0.09 0.03
US$195,000 US$90,000 US$205,000
0.11 0.32 0.27 0.46 0.54 0.06 0.11
0.09 0.08 0.45 0.04
US$40,000 US$270,000 US$65,000 US$90,000 US$345,000 US$1,400,000 US$541,515 US$510,000 US$135,000 US$260,000 US$1,815,000 US$4,815,000 US$150,000 US$150,000 US$1,380,000 US$740,000 US$350,000 US$210,000 US$149,965
0.14 0.11 0.12 0.49 0.38
US$135,000 US$140,000 US$1,000,000
0.54
US$90,000 US$95,000 US$100,000
0.40
US$80,000
0.73
US$300,000
1.24 0.16 0.05 0.09 0.08 0.08 0.54 0.45 0.03 0.20 0.27 0.20 0.18
0.89
Description
88,329,260 ____________ 89,868,551 ____________
Total Bonds
0.33 0.19 0.08 0.18 0.04 0.27 0.06 0.09 0.31 1.27 0.60 0.45 0.12 0.23 1.65 5.06 0.17 0.18 1.28 0.90 0.41 0.27 0.13 0.12 0.13 0.90 0.09 0.09 0.09 0.07 0.28 ______ 79.22 ______ 80.60 ______
USA US$5,000,000 US$5,000,000 US$4,100,000 US$5,000,000 US$1,700,000 US$3,000,000 US$900,000 US$5,500,000 US$3,000,000
BellSouth 0% 8/7/2005 4,995,849 Canadian Wheat Board 0% 20/7/2005 4,990,278 Cancara Asset Secur 0% 13/7/2005 4,095,087 Caterpillar Financial Services 0% 12/7/2005 4,993,999 Du Pont EI de Nemour 0% 14/7/2005 1,697,806 Du Pont EI de Nemour 0% 19/7/2005 2,994,712 Polonius 0% 11/7/2005 899,087 Rabobank 0% 19/7/2005 5,489,812 Swedbank 0% 8/7/2005 2,997,789 ____________
Total Commercial Paper
Other Net Liabilities Total Net Assets (US$)
0.28
%
COMMERCIAL PAPER
Total Portfolio 0.16
Value (US$)
Structured Asset Securities ‘2005-GEL2 A’ FRN 25/4/2035 366,103 TELUS 7.5% 1/6/2007 206,399 Tengizchevroil Finance ‘144A’ 6.124% 15/11/2014 92,475 Textron Financial MTNE 2.75% 1/6/2006 203,085 Time Warner 7.625% 15/4/2031 49,718 Tyco International 6.75% 15/2/2011 299,475 Union Pacific 5.375% 1/5/2014 67,473 Union Pacific 7.25% 1/11/2008 98,033 US Bancorp MTNN FRN 16/9/2005 345,100 US Treasury 1.625% 15/1/2015 1,419,926 US Treasury 3.5% 15/1/2011 670,989 US Treasury 3.625% 15/6/2010 507,012 US Treasury 3.75% 15/5/2008 135,243 US Treasury 3.875% 15/5/2010 261,087 US Treasury 4.125% 15/5/2015 1,835,419 US Treasury 5.375% 15/2/2031 5,645,963 US Treasury 6.25% 15/8/2023 185,962 US Treasury 6.625% 15/2/2027 197,883 US Treasury 7% 15/7/2006‡ 1,428,355 US Treasury 7.25% 15/8/2022‡ 1,001,862 US Treasury 7.5% 15/11/2016 457,105 US Treasury 8.125% 15/8/2019 296,248 Washington Mutual ‘2005-AR2 B4’ FRN 25/1/2045 149,965 Washington Mutual 4.2% 25/1/2045 133,783 Wells Fargo & Co 5% 15/11/2014 143,879 Wells Fargo Home Equity Trust ‘2004-2 A32’ FRN 25/2/2032 1,003,760 Westar Energy 6% 1/7/2014 97,735 Westfield Capital 5.125% 15/11/2014 96,484 Whole Auto Loan Trust ‘2004-1 D’ 5.6% 15/3/2011 100,717 Willis Group North America 5.125% 15/7/2010 79,896 Wyeth 5.5% 15/3/2013 315,379 ____________
4.48 4.48 3.67 4.48 1.52 2.69 0.81 4.92 2.69 ______
33,154,419 ____________ 123,022,970
29.74 ______ 110.34
(11,527,203) ____________ 111,495,767 ____________
(10.34) ______ 100.00 ______
US Dollar Core Bond Fund
continued
Swaps as at 30 June 2005 Nominal Value US$
Description
Unrealised profit/(loss) US$
Total Return Swap (UBS Warburg) (Fund pays floating US$ LIBOR 1-month - 0.10% and received MBS Index Value) (1/7/2005) 475,000 Credit Default Swap (Morgan Stanley) (Fund pays default protection on Sprint Capital Corporation 6.875% 15/11/2028; and receives Fixed 1.5%) (20/9/2008) 475,000 Credit Default Swap (Morgan Stanley) (Fund pays default protection on Comcast Cable Communications 6.75% 30/1/2011; and receives Fixed 1.15%) (20/9/2008) 475,000 Credit Default Swap (Morgan Stanley) (Fund receives default protection on Weyerhauser 6.75% 15/3/2012; and pays Fixed 0.73%) (20/9/2008) 600,000* Total Return Swap (Morgan Stanley) (Fund pays on TIP 15/1/2011; variable notional amount, Fixed interest rate 3.5%; and receives Fixed 4.17%) (15/1/2011) 180,000 Interest Rate Swap (JP Morgan Chase) (Fund receives floating US$ LIBOR 3-Month; and pays Fixed 2.8025%) (15/1/2007) 180,000 Credit Default Swap (Morgan Stanley) (Fund receives default protection on AON Corporation 6.2%; and pays Fixed 0.37%) (15/1/2007) 13,100,000 Total Return Swap (Lehman Brothers) (Fund pays floating US$ Libor 1-month - 0.15%; fund receives US treasury Index) (1/11/2005) 200,000 Credit Default Swap (JP Morgan Chase) (Fund pays default protection on Nextel Communications Inc. 7.375% 1/8/2015; and receives Fixed 1.72%) (20/9/2009) 225,000 Credit Default Swap (Lehman Brothers) (Fund pays fixed 3.59% default protection on Ford Motor Credit Company 7% 1/10/2013) (20/6/2010) 750,000 Total Return Swap (UBS) (Fund pays floating US$ LIBOR 1-month - 0.12%; Fund receives MBS Fixed Rate Index) (1/11/2005) 5,650,000 Total Return Swap (Lehman Brothers) (Fund pays floating US$ Libor 1-month - 0.10%; Fund receives MBS Fixed Rate Index) (1/10/2005) 450,000 Credit Default Swaps (Lehman Brothers) (Fund pays default protection on United Mexican States 7.5% 8/4/2033; and receives Fixed 0.92%) (20/12/2009) 450,000 Credit Default Swaps (Lehman Brothers) (Fund receives default protection on Petroleos Mexicanos 9.5% 15/9/2027; and pays Fixed 1.09%) (20/12/2009) 1,600,000 Total Return Swap (UBS) (Fund pays floating US$ LIBOR 1-month - 0.14%; Fund receives CMBS Investment Grade Index) (1/9/2005) 7,400,000 Total Return Swap (Lehman Brothers) (Fund pays floating US$ Libor 1-month - 0.10%; Fund receives MBS Fixed Rate Index) (1/9/2005) 5,600,000 Total Return Swap (Lehman Brothers) (Fund receives US Treasury Index; and pays Floating US$ LIBOR 1-Month - 0.15%) (1/12/2005)
Nominal Value US$
Description
Unrealised profit/(loss) US$
5,000,000
1,850,000
–
18,576
12,900
(4,056)
5,389
2,066
(647)
51,666
10,040
(5,223)
1,762
13,272
711
1,746
6,795
17,383
Credit Default Swap (Morgan Stanley) (Fund pays default protection on Dow Jones CDX; and receives Fixed 0.60%) (20/9/2009) 6,396 4,750,000 Interest Rate Swap (Lehman Brothers) (Fund pays floating US$ Libor 3-month; and receives US$ LIBOR 3 Month + 0.40% capped at 6% (18/11/2010) (5,842) 1,850,000 Total Return Swap (UBS) (Fund pays Floating US$ LIBOR 1-month - 0.05%; Fund receives MBS Fixed Rate Index) (1/10/2005) 4,346 1,750,000 Total return Swap (UBS) (Fund pays floating US$ LIBOR 1-month - 0.05%; Fund receives MBS Fixed Rate Index) (1/11/2005) 4,111 225,000 Credit Default Swap (Lehman Brothers) (Fund receives default protection on Hewlett-Packard 6.5% 1/7/2012; and pays Fixed 0.31%) (20/12/2009) 238 225,000 Credit Default Swap (Lehman Brothers) (Fund pays default protection on Computer Associates Intl. Inc. 6.5% 15/4/2008; and receives Fixed 0.83%) (20/12/2009) 809 5,700,000** Interest Rate Swap (Credit Suisse) (Fund pays floating US$ Libor 1-month and receives US$ Libor 1-month + 0.40% capped at 6%) (16/6/2011) 4,309 2,000,000 Credit Default Swap (Deutsche Bank) (Fund receives fixed 0.4%; Fund pays default protection on Dow Jones CDX index) (20/6/2010) (18,384) 900,000 Total Return Swap (Lehman Brothers) (Fund pays floating US$ Libor 1-month - 0.15%; Fund receives US Treasury Index) (1/3/2006) 3,550 865,000 Credit Default Swap (Morgan Stanley) (Fund pays default protection on Dow Jones CDX; and receives Fixed 0.60%) (20/9/2009) 1,106 195,000 Credit Default Swap (JP Morgan Chase) (Fund pays 0.90% default protection on International Paper Company 6.75% 1/9/2011) (20/6/2010) 1,086 150,000 Credit Default Swap (Lehman Brothers) (Fund pays default protection on Goldman Sachs Group 6.6% 15/1/2012; and receives Fixed 0.45%) (20/6/2010) (686) 150,000 Credit Default Swap (Morgan Stanley) (Fund pays fixed 0.44%, Fund receives default protection on JPM Chase & Co 3.5% 15/3/2009) (20/6/2010) (629) 150,000 Credit Default Swap (Deutsche Bank) (Fund receives fixed 0.195%; Fund pays default protection on Wells Fargo & Co 3.5% 4/4/2008) (20/6/2010) (712) 150,000 Credit Default Swap (Lehman Brothers) (Fund pays default protection on Bellsouth Corp 6% 15/10/2011; and receives Fixed 0.26%) (20/6/2010) 36 2,100,000** Interest Rate Swap (Deutsche Bank) (Fund pays Fixed 5.14% and receives USD Libor 3 month) (9/1/2015) 33,909 ________ 188,109 ________
22,086
(*) The receipt leg is capped at 6% between 16/12/2005 and 16/6/2011. The Fund sold an option to terminate the swap contract. Option Expiry dates: 16/12/2005 to 16/6/2011 on a monthly basis. (**) The Fund sold an option to terminate the swap contract. Option expiry date: 7/1/2008. Note: The net unrealised profit attributed to these transactions is included in Other Net Liabilities (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
135
US Dollar Core Bond Fund
continued
Open Futures Contracts as at 30 June 2005
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases US$595670
Sales e484,478
Value date 8/10/2005
Net unrealised profit
Unrealised profit US$ 10,942 ________ 10,942 ________
Note: The net unrealised profit attributed to this transaction is included in Other Net Liabilities (see Note 2c).
78
Issuer US 5-Year Treasury Note Call Option Strike Price US$109.5 expiring on 22/7/2005
Total Purchased Call Options
Unrealised loss US$
(30,761) ____________ (30,761) ____________
Note: Purchased Call Options are included in Other Net Liabilities (see Note 2c).
136
Merrill Lynch International Investment Funds
Issuer US Treasury 2 Year Note US Treasury 5 Year Note US Treasury 10 Year Note
Total commitment
Expiration Value date US$ September 2005 (7,362,265) September 2005 (4,569,125) September 2005 __________ (761,141) (12,692,531) __________
Note: The net unrealised profit of US$23,649 attributed to these transactions is included in Other Net Liabilities (see Note 2c).
Written Put Options as at 30 June 2005
Purchased Call Options as at 30 June 2005 Par Value Subject to Call US$
Number of Contracts (22) (7) (65)
Value US$
8,531 _______ 8,531 _______
Par Value Subject to Put US$
Issuer
(119) US 5-Year Treasury Note Put Option Strike Price US$108 expiring on 22/7/2005 Total Written Put Options
Unrealised profit US$
Value US$
3,274 ____________ 3,274 ____________
(16,734) _______ (16,734) _______
Note: Written Put Options are included in Other Net Liabilities (see Note 2c).
US Dollar High Yield Bond Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) & WARRANTS US$1,000,000
USA 22,200 21,000
Loral Space & Communications (Wts 26/12/2006) Trico Marine Services
Total Common Stocks (Shares) & Warrants
244 394,800 ____________ 395,044 ____________
0.00 0.22 ______ 0.22 ______
US$1,000,000 US$2,350,000 US$57,000 US$259,883
BONDS US$98,000
Canada US$1,000,000 US$425,000 US$325,000 US$450,000 US$400,000 US$250,000 US$500,000 US$500,000 US$1,000,000 US$250,000
Abitibi-Consolidated 8.375% 1/4/2015 1,025,000 CanWest Media 8% 15/9/2012 449,438 Fairfax Financial Holdings 7.75% 26/4/2012 312,000 Intrawest 7.5% 15/10/2013 464,063 MAAX 9.75% 15/6/2012 355,000 Millar Western Forest Products 7.75% 15/11/2013 235,000 North American Energy Partners 8.75% 1/12/2011 431,250 Novelis ’144A’ 7.25% 15/2/2015 498,750 Rogers Wireless Communications 6.375% 1/3/2014 1,017,500 Rogers Wireless Communications FRN 15/12/2010 261,875 ____________
0.58 0.26 0.18 0.26 0.20 0.13 0.25 0.28 0.58
5,049,876 ____________
0.15 ______ 2.87 ______
1,387,500 ____________
0.79 ______
JSG Funding 9.625% 1/10/2012 502,500 JSG Funding ’144A’ 7.75% 1/4/2015 ____________ 1,196,250 1,698,750 ____________
0.28 0.68 ______
France US$1,250,000
Crown European Holdings 9.5% 1/3/2011
Ireland US$500,000 US$1,450,000
New Skies Satellites ’144A’ 9.125% 1/11/2012 274,313 ____________
0.16 ______
Ocean Rig Norway 10.25% 1/6/2008 ____________ 127,188
0.07 ______
South Korea US$500,000
US$500,000
MagnaChip Semiconductor/MagnaChip Semiconductor Finance ’144A’ 6.875% 15/12/2011 491,250 MagnaChip Semiconductor/MagnaChip Semiconductor Finance ’144A’ FRN 15/12/2011 485,000 ____________ 976,250 ____________
0.28
US$250,000 US$500,000 US$975,000 US$3,800,000 US$400,000 US$339,000 US$400,000 US$1,000,000 US$400,000 US$1,000,000 US$71,524 US$625,000 US$250,000 US$200,000 US$1,000,000 US$1,500,000
Inmarsat Finance 7.625% 30/6/2012 530,000 Invensys ’144A’ 9.875% 15/3/2011 ____________ 720,000 1,250,000 ____________
US$343,381 US$2,500,000 US$1,500,000 US$1,000,000 US$500,000
0.27 ______ 0.55 ______
United Kingdom US$500,000 US$750,000
US$1,875,000
US$1,000,000
Norway US$125,000
US$250,000
0.96 ______
Netherlands US$275,000
Description
Value (US$)
%
USA
0.30 0.41 ______ 0.71 ______
US$500,000
US$375,000 US$1,000,000 US$561,000
Advanced Accessory Systems 10.75% 15/6/2011 Advanced Micro Devices 7.75% 1/11/2012 AES ’144A’ 9% 15/5/2015 AES 8.875% 15/2/2011 AES Eastern Energy ’99-A’ 9% 2/1/2017 Alaska Communications Systems Holdings 9.875% 15/8/2011 ALH Finance/ALH Finance 8.5% 15/1/2013 Allied Waste North America 7.875% 15/4/2013 Alpharma ’144A’ 8.625% 1/5/2011 Alpharma 3% 1/6/2006 Altra Industrial Motion ’144A’ 9% 1/12/2011 American Airlines ’01-2’ 7.8% 1/10/2006 American Seafoods Group 10.125% 15/4/2010 American Tower 9.375% 1/2/2009 AmeriQual Group/AmeriQual Finance ’144A’ 9% 1/4/2012 Amkor Technology 7.125% 15/3/2011 Amscan Holdings 8.75% 1/5/2014 Anchor Glass Container/Bankruptcy 2002 11% 15/2/2013 Archibald Candy (Defaulted) 10% 1/11/2007 Aventine Renewable Energy Holdings ’144A’ FRN 15/12/2011 Boise Cascade ’144A’ 6.474% 18/10/2012 Bowater 6.5% 15/6/2013 Boyd Gaming 7.75% 15/12/2012 Building Materials Corporation of America ’B’ 7.75% 15/7/2005 Building Materials Corporation of America ’B’ 8% 15/10/2007 Caithness Coso Funding ’B’ 9.05% 15/12/2009 Calpine ’144A’ 8.75% 15/7/2013 Case New Holland 9.25% 1/8/2011 CCO Holdings/CCO Holdings Capital 8.75% 15/11/2013 Charter Communications ’144A’ 5.875% 16/11/2009 Charter Communications Holdings II/ Charter Communications Holdings II Capital 10.25% 15/9/2010 Choctaw Resort Development Enterprise ’144A’ 7.25% 15/11/2019 Cincinnati Bell 7.25% 15/7/2013 Coinmach 9% 1/2/2010
815,000
0.46
988,750 2,649,624 63,840
0.56 1.50 0.04
300,327
0.17
104,370
0.06
230,000
0.13
1,926,563 245,625 637,500
1.09 0.14 0.36
926,250
0.53
3,565,610
2.02
429,000 357,221
0.24 0.20
410,000 860,000 368,000
0.23 0.49 0.21
777,500
0.44
21,865
0.01
596,875
0.34
253,750 197,750 1,072,500
0.14 0.11 0.61
1,496,250
0.85
998,750
0.57
369,992 1,862,500 1,582,500
0.21 1.06 0.90
982,500
0.56
328,125
0.19
506,250
0.29
375,000 1,055,000 576,428
0.21 0.60 0.33
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
137
US Dollar High Yield Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$750,000 US$1,100,000 US$1,525,000 US$400,000 US$1,500,000 US$750,000 US$2,071,906 US$1,300,000 US$250,000 US$500,000 US$1,500,000 US$750,000 US$1,475,000 US$250,000 US$325,000 US$500,000 US$1,000,000 US$1,000,000 US$2,100,000 US$1,117,000 US$600,000 US$1,500,000 US$1,200,000 US$142,000 US$550,000 US$2,500,000 US$925,000 US$18,000 US$350,000 US$1,239,000 US$1,500,000 US$1,700,000 US$1,100,000 US$1,500,000 US$1,100,000
138
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
Commonwealth Brands ’144A’ 10.625% 1/9/2008 Commonwealth Brands ’144A’ 9.75% 15/4/2008 Compass Minerals International ’B’ 0/12% 1/6/2013 (step-up coupon) Concentra Operating 9.125% 1/6/2012 Consolidated Container 0/10.75% 15/6/2009 (step-up coupon) Consolidated Container/Consolidated Container Capital 10.125% 15/7/2009 Continental Airlines ’01-1’ 7.033% 15/6/2011 Cooper-Standard Automative 7% 15/12/2012 Corrections Corporation of America 7.5% 1/5/2011 Chemtura FRN 1/8/2010 CSC Holdings 7.25% 15/7/2008 Cypress Semiconductor 1.25% 15/6/2008 DaVita ’144A’ 7.25% 15/3/2015 Del Monte ’144A’ 6.75% 15/2/2015 Delco Remy International 9.375% 15/4/2012 Delta Air Lines ’144A’ 2.875% 18/2/2024 Dex Media 8% 15/11/2013 Dex Media East/Dex Media East Finance 9.875%15/11/2009 Dex Media West/Dex Media Finance ’B’ 8.5% 15/8/2010 Dex Media West/Dex Media Finance ’B’ 9.875% 15/8/2013 DI Finance/DynCorp International ’144A’ 9.5% 15/2/2013 Doane Pet Care 10.75% 1/3/2010 Dole Food 7.25% 15/6/2010 Dole Food 8.875% 15/3/2011 Dresser-Rand ’144A’ 7.375% 1/11/2014 Eagle-Picher Industries 9.75% 1/9/2013 Emmis Communications ’144A’ FRN 15/6/2012 Emmis Communications ’A’ 6.25% 29/8/2005 (Pref) ERICO International 8.875% 1/3/2012 ESI Tractebel Aquisition ’B’ 7.99% 30/12/2011 Esterline Technologies 7.75% 15/6/2013 Exide Technologies ’144A’ 10.5% 15/3/2013 Fasten Tech 11.5% 1/5/2011 Felcor Lodging 9% 1/6/2011 Forest City Enterprises 7.625% 1/6/2015
%
Holding
791,250
0.45
US$40,000 US$1,000,000 US$1,500,000
1,160,500
0.66 US$250,000
1,281,000 426,000
0.73 0.24
US$250,000
1,177,500
0.67
US$250,000
588,750
0.33
US$900,000
1,740,432
0.99
US$1,200,000
1,183,000
0.67
261,875 562,500 1,511,250
0.15 0.32 0.86
US$850,000 US$500,000 US$1,000,000
807,188 1,526,625 255,625
0.46 0.87 0.14
US$1,175,000 US$900,000 US$250,000 US$700,000
261,625
0.15
176,250 1,066,250
0.10 0.60
1,107,500
0.63
US$250,000 US$700,000 US$500,000 US$750,000 US$250,000
2,299,500
1.30
US$1,025,000
1,278,965
0.73
US$1,000,000
558,000 1,590,000 1,224,000 152,295
0.32 0.90 0.69 0.09
US$2,100,000 US$850,000 US$2,600,000
574,750
0.33
1,725,000
0.98
942,344
0.53
737,820 357,000
0.42 0.20
1,321,739
0.75
1,590,000
0.90
1,343,000 1,196,250 1,636,875
0.76 0.68 0.93
1,177,000
0.67
Merrill Lynch International Investment Funds
US$1,950,000 US$1,500,000 US$1,185,000 US$1,300,000 US$725,000 US$750,000 US$1,125,000 US$3,000,000 US$375,000 US$250,000 US$1,500,000 US$1,750,000 US$1,500,000 US$1,000,000
Description
Value (US$)
General Motors ’C’ 6.25% 15/7/2033 GEO Group 8.25% 15/7/2013 Goodman Global Holding ’144A’ 7.875% 15/12/2012 Goodman Global Holding ’144A’ FRN 15/6/2012 Graham Packaging ’144A’ 9.875% 15/10/2014 Graham Packaging ’144A’ 8.5% 15/10/2012 Granite Broadcasting 9.75% 1/12/2010 Graphic Packaging International 8.5% 15/8/2011 Herbst Gaming 7% 15/11/2014 Hines Nurseries 10.25% 1/10/2011 Host Marriott ’144A’ 6.375% 15/3/2015 Houghton Mifflin 8.25% 1/2/2011 Huntsman International 9.875% 1/3/2009 Hydrochem Industrial Services ’144A’ 9.25% 15/2/2013 Inergy LP/Inergy Finance ’144A’ 6.875% 15/12/2014 Innophos ’144A’ 8.875% 15/8/2014 INVISTA ’144A’ 9.25% 1/5/2012 Jefferson Smurfit 8.25% 1/10/2012 JLG Industries 8.25% 1/5/2008 Keystone Automotive Operations 9.75% 1/11/2013 Laidlaw International 10.75% 15/6/2011 Landry’s Restaurants ’B’ 7.5% 15/12/2014 Liberty Media 0.75% 30/3/2023 MacDermid 9.125% 15/7/2011 Majestic Star Casino/Majestic Star Casino Capital 9.5% 15/10/2010 Merisant ’144A’ 10.75% 15/7/2013 Merisant Worldwide ’144A’ 0/12.25% 15/5/2014 (step-up coupon) Metaldyne 11% 15/6/2012 Metaldyne ’144A’ 10% 1/11/2013 MSW Energy Holdings II/MSW Energy Finance II ’B’ 7.375% 1/9/2010 Mueller Group 10% 1/5/2012 Nalco 7.75% 15/11/2011 Nevada Power 9% 15/8/2013 North Atlantic Trading 9.25% 1/3/2012 NSP Holdings/NSP Holdings Capital 11.75% 1/1/2012 Omnova Solutions 11.25% 1/6/2010 Overseas Shipholding Group 8.25% 15/3/2013 Owens Brockway Glass Container 8.25% 15/5/2013 Owens-Illinois 8.1% 15/5/2007
%
848,400 970,000
0.48 0.55
1,395,000
0.79
245,000
0.14
251,250
0.14
253,750
0.14
841,500
0.48
1,239,000 860,625 517,500
0.70 0.49 0.29
990,000 1,224,938
0.56 0.69
967,500
0.55
231,250
0.13
684,250 256,875 768,250 503,750 789,375
0.39 0.15 0.44 0.29 0.45
248,750
0.14
1,200,972
0.68
972,500 2,231,250 920,125
0.55 1.27 0.52
2,691,000 1,394,250
1.53 0.79
532,500 788,025 1,092,000
0.30 0.45 0.62
746,750 791,250 1,195,312 3,390,000 282,188
0.42 0.45 0.68 1.92 0.16
273,750 1,582,500
0.15 0.90
1,846,250
1.05
1,636,875 1,045,000
0.93 0.59
US Dollar High Yield Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$750,000 US$420,200 US$250,000 US$1,550,000 US$500,000 US$2,000,000 US$2,000,000 US$500,000 US$825,000 US$1,000,000 US$490,000 US$450,000 US$2,050,000 US$500,000 US$325,000 US$500,000 US$250,000 US$1,250,000 US$1,000,000 US$3,000,000 US$1,000,000 US$250,000 US$2,750,000 US$425,000 US$500,000 US$1,500,000 US$2,040,000 US$250,000 US$1,375,000 US$500,000 US$500,000 US$750,000 US$490,000 US$250,000 US$500,000 US$250,000 US$172,000
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
Pliant 13% 1/6/2010 Pliant ’144A’ 11.625% 15/6/2009 Premier Entertainment Biloxi/Premier Finance Biloxi 10.75% 1/2/2012 Propex Fabrics 10% 1/12/2012 Quantum 4.375% 1/8/2010 Qwest Communications International FRN 15/2/2009 Qwest Services 13.5% 15/12/2010 Refco Finance Holdings 9% 1/8/2012 Reliant Energy 6.75% 15/12/2014 Rockwood Specialties Group 10.625% 15/5/2011 Salem Communications Holding ’B’ 0/9% 1/7/2011 (step-up coupon) SBA Telecommunications/SBA Communications 9.75% 15/12/2011 Sensus Metering Systems 8.625% 15/12/2013 Sierra Pacific Power ’A’ 8% 1/6/2008 Simmons Bedding 7.875% 15/1/2014 Sinclair Broadcast Group 8% 15/3/2012 Sinclair Broadcast Group 8.75% 15/12/2011 Smithfield Foods ’B’ 8% 15/10/2009 Southern Natural Gas 8.875% 15/3/2010 Southern Star Central 8.5% 1/8/2010 Southern States Cooperative ’144A’ 10.5% 1/11/2010 Standard Aero Holdings ’144A’ 8.25% 1/9/2014 Star Gas Partner/Star Gas Finance 10.25% 15/2/2013 Stone Energy 6.75% 15/12/2014 Suburban Propane Partners/Suburban Energy Finance 6.875% 15/12/2013 Superior Essex Communications/Essex Group 9% 15/4/2012 Tekni-Plex ’144A’ 8.75% 15/11/2013 Tekni-Plex ’144A’ 10.875% 15/8/2012 Tekni-Plex ’B’ 12.75% 15/6/2010 Telcordia Technologies ’144A’ 10% 15/3/2013 Tenaska Alabama Partners ’144A’ 7% 30/6/2021 Tenneco Automotive 8.625% 15/11/2014 Terra Capital 11.5% 1/6/2010 Terremark Worldwide ’144A’ 9% 15/6/2009 Terremark Worldwide 9% 15/6/2009 Texas Genco/Texas Genco Financing ’144A’ 6.875% 15/12/2014 Time Warner Telecom 9.75% 15/7/2008
611,250 451,715
%
Holding
0.35 0.26
US$500,000 US$750,000 US$175,000 US$1,000,000 US$1,250,000
240,000 1,480,250 478,750
0.14 0.84 0.27
1,965,000 2,320,000 531,250 812,625
1.11 1.32 0.30 0.46
US$500,000 US$1,500,000
1,105,000
0.63
US$400,000
531,650
0.30
416,250
0.24
1,916,750 536,250 282,750
1.09 0.30 0.16
US$2,100,000 US$950,000 US$250,000 US$500,000 US$500,000 US$600,000
513,750
0.29
263,437 1,350,000
0.15 0.77
1,098,217 3,165,000
0.62 1.80
995,000
0.56
265,000
0.15
2,564,375 416,500
1.45 0.24
477,500
0.27
1,492,500 1,790,100 270,625 938,437
0.85 1.02 0.15 0.53
470,000
0.27
505,000
0.29
US$250,000
US$300,000 US$1,875,000 US$1,300,000 US$404,000 US$300,000 US$700,000 US$500,000 US$250,000 US$1,000,000
0.42 0.32
228,750 457,500
0.13 0.26
264,375
0.15
173,720
0.10
Value (US$)
% 0.27 0.46 0.11 0.48 0.66 0.30 0.81 0.15 0.24 1.25 0.50 0.16 0.28 0.25 0.34 0.17 1.06 0.70 0.25 0.19 0.34 0.27 0.14 0.55 ______ 86.49 ______
Total Bonds
152,416,463 ____________ 163,053,152 ____________
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
163,722,509 ____________
92.82 ______
0 ____________
0.00 ______
0 8 ____________ 8 ____________
0.00 0.00 ______ 0.00 ______
8 ____________
0.00 ______
92.53 ______
Unquoted Securities COMMON STOCKS (SHARES) & WARRANTS Australia 8,000
746,250 561,050
Description
Time Warner Telecom Holdings ’144A’ 9.25% 15/2/2014 484,375 Titan 8% 15/5/2011 808,125 TransDigm 8.375% 15/7/2011 186,375 Trimas 9.875% 15/6/2012 845,000 True Temper Sports 8.375% 15/9/2011 1,162,500 Ucar Finance 10.25% 15/2/2012 528,750 United Rentals North America 7% 15/2/2014 1,436,250 Universal City Florida Holding I/II 8.375% 1/5/2010 261,250 Universal City Florida Holding I/II FRN 1/5/2010 416,000 US Can 10.875% 15/7/2010 2,199,750 US Can ’B’ 12.375% 1/10/2010 890,625 US Oncology 10.75% 15/8/2014 273,750 Valmont Industries 6.875% 1/5/2014 502,500 Viasystems 10.5% 15/1/2011 447,500 Vought Aircraft Industries 8% 15/7/2011 591,000 VWR International 6.875% 15/4/2012 297,750 Waste Services ’144A’ 9.5% 15/4/2014 1,865,625 WDAC Subsidiary ’144A’ 8.375% 1/12/2014 1,238,019 Westlake Chemical 8.75% 15/7/2011 441,370 Williams Scotman 10% 15/8/2008 331,540 Wise Metals Group 10.25% 15/5/2012 591,500 Wolverine Tube 10.5% 1/4/2009 477,500 Wornick 10.875% 15/7/2011 255,000 Wynn Las Vegas/Wynn Las Vegas Capital 6.625% 1/12/2014 977,500 ____________
Australis Media (Defaulted) (Wts 4/6/2014)
USA 974 750
Archibald Candy Tribo Petroleum ’A’
Total Common Stocks (Shares) & Warrants
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
139
US Dollar High Yield Bond Fund
continued
Portfolio of Investments 30 June 2005 Unquoted Securities Holding
Description
Unquoted Securities Value (US$)
%
US$442
BONDS Australia US$8,136,860
Australis Media 15.75% 15/5/2003 (Defaulted) 0 ____________
US$4,000,000 0.00 ______
Canada US$4,000,000
US$3,000,000
140
Breed Technologies 9.25% 15/4/2008 (Defaulted) Mid-American Waste Systems 12.25% 15/2/2003
Merrill Lynch International Investment Funds
Description Tri-Union Development 13% 1/8/2009 Wheeling Pittsburg Escrow 0% 15/11/2007
Total Bonds
Consolidated Hydro 0% 15/7/2003 ____________ 0
0.00 ______
Total Unquoted Securities Total Portfolio
USA US$4,500,000
Holding
0
0.00
Other Net Assets Total Net Assets (US$)
0
0.00
Value (US$)
%
0
0.00
0 ____________ 0 ____________
0.00 ______ 0.00 ______
0 ____________ 8 ____________
0.00 ______ 0.00 ______
163,575,392
92.82
12,653,359 ____________ 176,228,751 ____________
7.18 ______ 100.00 ______
US Dollar Low Duration Bond Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
BONDS Australia US$500,000
Westfield Capital ’144A’ FRN 2/11/2007
US$49,402 501,005 ____________
0.37 ______
Canada US$500,000 US$350,000 US$240,000 US$140,000 US$265,000
Burlington Resources Finance 5.6% 1/12/2006 508,010 Conoco Funding 5.45% 15/10/2006 355,777 Potash Corp of Saskatchewan 7.125% 15/6/2007 252,555 Province of Ontario 3.282% 28/3/2008 137,117 TELUS 7.5% 1/6/2007 280,490 ____________
0.10 0.21 ______
1,533,949 ____________
1.12 ______
546,240 ____________
0.40 ______
France Telecom 7.2% 1/3/2006
0.37 0.26 0.18
Tyco International Group 6.375% 15/2/2006
506,851 ____________
0.37 ______
Panama US$170,000
Carnival 3.75% 15/11/2007
168,225 ____________
0.12 ______
FirstBank Puerto Rico 7.625% 20/12/2005
468,666 ____________
0.34 ______
United Kingdom US$750,000 US$525,000
British Telecommunications 7.875% 15/12/2005 763,264 HBOS Treasury Services ’144A’ 3.5% 30/11/2007 518,390 ____________ 1,281,654 ____________
US$325,000
US$2,000,000 US$405,000 US$280,000 US$500,000 US$800,000 US$961,777 US$260,000 US$325,000 US$500,000 US$195,000
US$30,000 US$7,000 US$200,000 US$150,000 US$245,000 US$650,000
US$407,193 US$50,915
Alabama Power ’Y’ 2.8% 1/12/2006 Alltel 4.656% 17/5/2007 Ameren 4.263% 15/5/2007 American Airlines ’AMBC’ 3.857% 9/7/2010 American Electric Power ’A’ 5.75/4.709% 16/8/2007 (step-up coupon) Ameriquest Mortgage Securities ’2004-FR1 A3’ 2.65% 25/5/2034 Amgen ’144A’ 4% 18/11/2009 AON 6.95% 15/1/2007 Appalachian Power FRN 29/6/2007 Bank of America 4.75% 15/10/2006 Bank of America Mortgage Securities ’2003-J 2A1’ FRN 25/11/2033 Bank of New York ’BKNT’ 3.8% 1/2/2008 Bear Stearns 7.8% 15/8/2007 BellSouth FRN 15/11/2007 Boston Edison FRN 15/10/2005
US$1,362,663 US$440,000
0.56 0.38 ______ 0.94 ______
US$800,000 US$1,500,000 US$600,000
USA US$500,000 US$655,000 US$90,000 US$152,007
US$1,000,000
US$1,300,000 US$500,000
Puerto Rico US$465,000
US$170,000
US$325,180
Luxembourg US$500,000
US$145,701 US$700,000
France US$535,000
Holding US$775,000
491,801 660,443 90,116
0.36 0.48 0.07
149,076
0.11
327,733
0.24
1,985,024 401,542 289,031 501,575 808,636
1.45 0.29 0.21 0.37 0.59
953,864
0.70
257,993 348,379 500,797 195,245
0.19 0.26 0.37 0.14
US$400,000 US$500,000 US$7,880,167 US$926,000 US$16,000 US$135,000 US$195,000 US$100,000 US$750,000 US$190,000 US$500,000 US$500,000 US$3,500,000
Description
Value (US$)
Burlington Northern Santa Fe 6.375% 15/12/2005 California Infrastructure PG&E-1 ’1997-1 A7’ 6.42% 25/9/2008 California Infrastructure SCE-1 ’1997-1 A6’ 6.38% 25/9/2008 Capital One Auto Finance Trust ’2003-A A4A’ 2.47% 15/1/2010 Capital One Bank ’BKNT’ 4.875% 15/5/2008 Capital One Master Trust ’2000-4 C’ FRN 15/8/2008 CC Funding Trust I 6.9% 16/2/2007 Cendant 4.89% 17/8/2006 (Units) Cendant 6.25% 15/1/2008 Cendant 6.875% 15/8/2006 Centex MTNE FRN 1/8/2007 Chase Credit Card Master Trust ’2003-1 C’ FRN 15/4/2008 Chase Funding Mortgage Loan Asset-Backed Certificates ’1999-4 IA6’ 7.41% 25/9/2011 Chase Manhattan Auto Owner Trust ’2003-A CTFS’ 2.04% 15/12/2009 CIT Group Home Equity Loan Trust ’2003-1 A2’ 2.35% 20/4/2027 Citigroup 5% 6/3/2007 Comcast Cable Communications 8.375% 1/5/2007 Commercial Mortgage Pass Through Certificate 3.566% 15/10/2037 Computer Associates International ’144A’ 4.75% 1/12/2009 Countrywide Asset-Backed Certificates ’2004-12 AF2’ 1.541% 25/5/2024 Countrywide Asset-Backed Certificates ’2004-13 AF3’ 3.989% 25/12/2034 Countrywide Home Loans MTNK 4.25% 19/12/2007 Cox Communications 7.75% 15/8/2006 Credit Suisse First Boston USA 4.7% 1/6/2009 CS First Boston Mortgage Securities ’2003-CPN1 ASP’ FRN 15/3/2035 CS First Boston Mortgage Securities ’2004-C3 A2’ 3.913% 15/7/2036 CSX 7.45% 1/5/2007 DaimlerChrysler NA Holding 4.75% 15/1/2008 Detroit Edison 5.05% 1/10/2005 Developers Diversified Realty MTN 7% 19/3/2007 Dominion Resources ’B’ 7.625% 15/7/2005 Dominion Resources ’B’ FRN 15/5/2006 DR Horton 7.5% 1/12/2007 DTE Energy FRN 1/6/2007 Fannie Mae 1.875% 15/9/2005
%
783,236
0.57
50,297
0.04
148,450
0.11
688,956
0.50
172,197
0.13
1,003,438 31,214 692,830 208,786 154,288 245,163
0.73 0.02 0.51 0.15 0.11 0.18
653,401
0.48
331,026
0.24
399,396
0.29
50,848 1,321,450
0.04 0.97
536,660
0.39
1,347,852
0.99
437,480
0.32
790,405
0.58
1,481,891
1.08
599,912
0.44
413,253
0.30
507,703
0.37
427,591
0.31
920,292 16,903
0.67 0.01
135,623 195,544
0.10 0.14
103,858
0.08
750,746 190,457 532,107 501,766 3,488,208
0.55 0.14 0.39 0.37 2.55
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
141
US Dollar Low Duration Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$1,500,000 US$547,097 US$1,519,429 US$98,475 US$207,117 US$617,099 US$3,500,000 US$748,330
US$2,250,000 US$1,500,000 US$200,000 US$1,100,000 US$500,000 US$430,929 US$7,572,978 US$1,709,438 US$2,485,794 US$1,684,478 US$1,100,680 US$494,786 US$2,694,394 US$659,387 US$295,883 US$219,808 US$265,527 US$423,483 US$570,000 US$300,000 US$1,955,000 US$273,399
142
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
Fannie Mae ’2003-17 QR’ 4.5% 25/11/2025 Fannie Mae ’2003-23 AB’ 4% 25/3/2017 Fannie Mae ’2003-48 HA’ 3.5% 25/11/2017 Fannie Mae Pool ’357352’ 6.5% 1/2/2033 Fannie Mae Pool ’564233’ 8% 1/11/2030 Fannie Mae Pool ’683137’ 8% 1/7/2027 Federal Home Loan Bank System 1.75% 15/8/2005 First Franklin Mortgage Loan Asset Backed Certificates ’2003-FF5 A2’ FRN 25/3/2034 First Horizon Asset Back Trust ’2004-HEA A2’ 4.07% 25/7/2019 First National Master Note Trust ’2003-2 C’ 3.7% 15/4/2009 FleetBoston Financial 3.85% 15/2/2008 Ford Motor Credit 6.875% 1/2/2006 Ford Motor Credit 7.6% 1/8/2005 Freddie Mac ’2590 XR’ 3.25% 15/12/2013 Freddie Mac ’2625 JD’ 3.25% 15/7/2017 Freddie Mac ’2651 GA’ 2.75% 15/7/2018 Freddie Mac (Gold) Pool ‘B19084’ 5% 1/4/2020 Freddie Mac (Gold) Pool ‘B19189’ 5% 1/5/2020 Freddie Mac (Gold) Pool ’E97351’ 5% 1/1/2018 Freddie Mac (Gold) Pool ‘G18053’ 5% 1/5/2020 Freddie Mac (Gold) Pool ’A20431’ 6% 1/1/2034 Freddie Mac (Gold) Pool ’E83659’ 6% 1/6/2016 Freddie Mac (Gold) Pool ’E89282’ 6% 1/4/2017 Freddie Mac (Gold) Pool ’E89883’ 6% 1/5/2017 Freddie Mac (Gold) Pool ’E90560’ 6% 1/7/2017 Freddie Mac (Gold) Pool ’G11114’ 6.5% 1/3/2016 General Electric Capital MTNA 3.75% 15/12/2009 General Electric Capital MTNA 6.5% 10/12/2007 General Motors Acceptance 7.5% 15/7/2005 GMAC Mortgage Corporation Loan Trust ’2003-HE2 A2’ 3.14% 25/6/2025
%
Holding US$300,000
1,502,057
1.10 US$550,000
538,259
0.39
1,490,601
1.09
102,047
0.08
US$500,000 US$419,452
US$10,585,398 222,710
0.16
665,069
0.49
3,492,606
2.56
US$1,783,795
US$3,569,485 748,267
0.55
US$4,693,736
2,214,778
1.62
US$1,500,000
1,492,416
1.09
US$250,000 US$410,000
198,306 1,111,473 501,152
0.15 0.81 0.37
422,800
0.31
7,314,711
5.35
1,629,218
1.19
2,513,006
1.84
US$1,000,000 US$375,000 US$500,000 US$57,678 US$500,000 US$725,000 US$65,000 US$168,195 US$1,015,000
1,702,918
1.25
1,113,082
0.81
US$1,000,000 US$500,000
500,088
0.37
US$530,000
2,763,048
2.02
US$305,000 US$9,088,513
681,680
0.50 US$1,343,575
305,900
0.22 US$500,000
227,250
0.17
274,516
0.20
440,611
0.32
US$85,000 US$402,000 US$220,000 US$1,750,000
559,398
0.41
US$500,000
316,434
0.23
1,955,936
1.43
US$550,000 US$300,000 US$115,000
Merrill Lynch International Investment Funds
US$7,156,970 272,078
0.20
Description
Value (US$)
Golden West Financial 5.5% 8/8/2006 Goldman Sachs Group 4.125% 15/1/2008 Goodrich 6.45% 15/4/2008 Government National Mortgage Association ’2002-83 A’ 3.313% 16/4/2017 Government National Mortgage Association ’2002-94 XB’ 1.768% 16/11/2007 Government National Mortgage Association ’2005-9 A’ 4.026% 16/5/2022 Greenwich Capital Commercial Funding ’2002-C1 XP’ 1.96% 11/1/2035 Greenwich Capital Commercial Funding ’2004-GG1 A2’ 3.835% 10/6/2036 GSAA Trust ’2004-10 AF2’ 4.22% 25/8/2034 Harris 6.35% 1/2/2028 Hartford Financial Services Group 4.7% 1/9/2007 Highwoods Properties 7% 1/12/2006 Hilton Hotels 7.95% 15/4/2007 Historic TW 8.18% 15/8/2007 Household Automotive Trust ’2002-3 A3A’ 2.75% 18/6/2007 HSBC Finance 4.125% 15/12/2008 HSBC Finance 6.5% 24/1/2006 IAC/InterActiveCorp 6.75% 15/11/2005 Ikon Receivables ’2003-1 A3B’ 2.33% 17/12/2007 International Lease Finance 2.95% 23/5/2006 IRT Property MTN 7.77% 1/4/2006 John Deere Capital MTND FRN 28/6/2006 JPMorgan Chase & Co 5.25% 30/5/2007 KeySpan 4.9% 16/5/2008 LB-UBS Commercial Mortgage Trust ’2002-C4 XCP’ 1.474% 15/10/2035 LB-UBS Commercial Mortgage Trust ’2004-C7 A1’ 3.625% 15/10/2029 Lehman Brothers Holdings 6.625% 5/2/2006 Mandalay Resort Group 6.45% 1/2/2006 Manor Care (Old) 7.5% 15/6/2006 MBNA MTN 5.625% 30/11/2007 MBNA Credit Card Master Note Trust ’2001-C3 C3’ 6.55% 15/12/2008 MBNA Credit Card Master Note Trust ’2002-C5 C5’ 4.05% 15/1/2008 Media General 6.95% 1/9/2006 Mellon Bank 7% 15/3/2006 Monumental Global Funding Funding II 3.85% 3/3/2008 National Collegiate Student Loan Trust 6.75% 25/12/2009
%
304,988
0.22
550,087 525,162
0.40 0.38
412,926
0.30
228,877
0.17
1,768,862
1.29
277,147
0.20
4,669,269
3.42
1,495,350 270,745
1.09 0.20
412,428 1,030,339 396,613 539,355
0.30 0.75 0.29 0.40
57,681 496,717 735,709 65,539
0.04 0.36 0.54 0.05
167,356
0.12
1,006,522 1,026,590
0.74 0.75
500,494
0.37
541,416 310,298
0.40 0.23
437,518
0.32
1,328,994
0.97
507,782 86,275 412,597 226,661
0.37 0.06 0.30 0.17
1,796,872
1.32
500,684 565,685 305,954
0.37 0.41 0.22
114,035
0.08
1,923,436
1.41
US Dollar Low Duration Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$3,200,000 US$600,000 US$100,000 US$120,000 US$875,000 US$130,000 US$125,000 US$305,000 US$315,000 US$1,000,000 US$525,000 US$500,000
US$960,000
US$600,000 US$120,000 US$277,000 US$880,000 US$300,000 US$720,000 US$250,000 US$450,000 US$23,000 US$30,200 US$115,210 US$390,000 US$510,000 US$885,000 (‡)
Description
Value (US$)
National Collegiate Student Loan Trust 7.73% 25/3/2012 1,053,664 National Rural Utilities Cooperative Finance 3.25% 1/10/2007 588,041 Nationwide Health Properties MTNC 7.6% 20/11/2028 116,034 News America 6.75% 9/1/2038 135,925 Nisource Finance FRN 23/11/2009 879,136 Norfolk Southern 7.35% 15/5/2007 137,158 Northrop Grumman 4.079% 16/11/2006 124,689 Northrop Grumman 7% 1/3/2006 310,629 Panhandle Eastern Pipe Line ’B’ 2.75% 15/3/2007 306,891 Pemex Project Funding Master Trust ’144A’ FRN 15/6/2010 1,032,500 PNC Funding 4.2% 10/3/2008 525,400 Popular ABS Mortgage Pass Through Trust ’2005-1 AF3’ 4.142% 25/5/2035 495,625 Popular ABS Mortgage Pass-Through Trust ’2004-5 AF2’ 3.735% 25/12/2034 950,883 Popular North America 4.7% 30/6/2009 606,504 Popular North America MTNE 3.875% 1/10/2008 118,684 PP&L 6.55% 1/3/2006 281,770 PPL Capital Funding Trust I 7.29% 18/5/2006 901,054 Protective Life Secured Trust MTN FRN 13/4/2007 300,313 Prudential Finance 5.34/4.104% 15/11/2006 (step-up coupon) 722,314 Prudential Finance MTN 3.75% 1/5/2008 247,826 PSEG Power 6.875% 15/4/2006 459,460 Raytheon 6.5% 15/7/2005 23,018 Raytheon 7% 15/5/2006 (Units) 1,550,584 Saxon Asset Securities Trust ’2002-3 AV’ FRN 25/12/2032 115,360 SBC Communications 4.125% 15/9/2009 386,457 Sealed Air ’144A’ 5.375% 15/4/2008 516,324 Sempra Energy 4.621% 17/5/2007 889,581
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
0.77
US$500,000 US$1,000,000 US$500,000
0.43 0.09 0.10 0.64 0.10 0.09 0.23 0.22 0.76 0.38
0.36
0.70 0.44
US$600,000 US$285,000 US$750,000 US$270,000 US$312,209 US$130,000 US$470,000 US$40,000 US$492,000 US$790,000 US$440,000 US$3,535,000 US$370,000 US$1,600,000 US$335,000 US$5,918,910
0.09 0.21
US$405,000 US$390,000 US$138,822
0.66
US$827,793
0.22
US$2,200,000
0.53
US$119,186
0.18 0.34 0.02 1.13
US$200,000 US$130,000
0.08
Total Portfolio
0.28 0.38 0.65
Other Net Assets
Value (US$)
%
Sigma Finance FRN 31/3/2014 505,740 Sigma Finance MTN FRN 8/2011 1,000,000 Southern California Edison FRN 13/1/2006 500,684 Southwest Airlines 7.875% 1/9/2007 642,488 Soverein Bank ’CD’ 4% 1/2/2008 282,118 Sprint Capital 6% 15/1/2007 768,870 St Paul Travelers 5.01% 16/8/2007 273,554 Systems 2001 Asset Trust ’144A’ 6.664% 15/9/2013 339,900 Target 5.4% 1/10/2008 135,163 Textron Financial MTNE 2.75% 1/6/2006 465,609 Timken MTNA 6.75% 21/8/2006 40,724 United Dominion Realty Trust MTNA 7.95% 12/7/2006 506,823 US Bancorp MTN 2.75% 30/3/2006 783,867 US Treasury 2.625% 15/5/2008‡ 427,385 US Treasury 3.5% 31/5/2007 3,524,921 US Treasury 3.625% 30/4/2007 369,848 Verizon Global Funding 6.75% 1/12/2005 1,618,910 Wachovia 6.15% 15/3/2009 357,990 Washington Mutual ’2004-AR3 A1’ 3.918% 25/6/2034 5,818,798 Washington Mutual 5.625% 15/1/2007 414,104 WellPoint ’144A’ 3.75% 14/12/2007 385,285 WFS Financial Owners Trust ’2003-2 B’ 2.48% 20/12/2010 137,477 WFS Financial Owners Trust ’2003-4 B’ 2.73% 20/5/2011 817,684 WFS Financial Owners Trust ’2004-4 A4’ 3.44% 17/5/2012 2,172,346 Whole Auto Loan Trust ’2002-1 B’ 2.91% 15/4/2009 118,946 Whole Auto Loan Trust ’2004-1 D’ 5.6% 15/3/2011 201,434 Xcel Energy 3.4% 1/7/2008 126,683 ____________
Description
0.37 0.73
Total Net Assets (US$)
128,057,035 ____________ 133,063,625 3,630,375 ____________ 136,694,000 ____________
0.37 0.47 0.21 0.56 0.20 0.25 0.10 0.34 0.03 0.37 0.57 0.31 2.58 0.27 1.18 0.26 4.26 0.30 0.28 0.10 0.60 1.59 0.09 0.15 0.09 ______ 93.68 ______ 97.34 2.66 ______ 100.00 ______
Securities held as collateral, see note 13 for further details.
Open Futures Contracts as at 30 June 2005 Number of Contracts (47) (15)
Issuer US Treasury 2 Year Note US Treasury 5 Year Note
Total commitment
Expiration Value date US$ September 2005 (9,761,313) September 2005 __________ (1,631,016) (11,392,329) __________
Note: The net unrealised loss of US$9,877 attributed to these transactions is included above in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
143
US Dollar Low Duration Bond Fund
continued
Swaps as at 30 June 2005 Nominal Value US$ 305,000
305,000
Description Interest Rate Swap (JP Morgan Chase) (Fund receives floating US$ LIBOR 3-Month; and pays Fixed 2.8025%) (15/1/2007) Credit Default Swap (Morgan Stanley) (Fund receives default protection on AON Corporation 6.2%; and pays Fixed 0.37%) (15/1/2007)
Unrealised profit/(loss) US$
3,500
Nominal Value US$
Description
7,000,000* Interest Rate Swap (Credit Suisse) (Fund pays floating US$ Libor 1-month and receives US$ Libor 1-month + 0.40% capped at 6%) (16/6/2011)
Unrealised profit/(loss) US$
__________– 2,404 __________
(1,097)
(*) The receipt leg is capped at 6% between 16/12/2005 and 16/6/2011. The Fund sold an option to terminate the swap contract. Option Expiry dates: 16/12/2005 to 16/6/2011 on a monthly basis. Note: The unrealised profit attributed to these transactions is included in Other Net Assets (see Note 2c).
144
Merrill Lynch International Investment Funds
US Dollar Reserve Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
BONDS Australia US$10,000,000 US$2,000,000 US$200,000 US$4,000,000 US$1,643,000
Commonwealth Bank of Australia EMTN FRN 13/6/2007 National Australia Bank EMTN FRN 22/10/2008 Telstra EMTN 6.5% 28/11/2005 Westpac Banking FRN 25/5/2007 Westpac Banking EMTN 5.75% 20/6/2006
US$5,000,000 10,012,950
3.50
2,000,860 202,046 4,001,236
0.70 0.07 1.40
1,673,149 ____________ 17,890,241 ____________
0.59 ______ 6.26 ______
Bank of Nova Scotia EMTN FRN 22/5/2008
9,995,550 ____________
3.50 ______
Cayman Islands US$380,000 US$5,000,000
BBV International Finance Cayman EMTN 6.875% 27/10/2005 384,097 Brazilian Diversified Payment Rights Finance ’2003-1X 1’ FRN 28/9/2008 5,002,500 ____________ 5,386,597 ____________
4,997,525 ____________
1.75 ______
Credit Agricole EMTN FRN 17/7/2006 5,001,222 Natexis Banques Populaires 7% 14/11/2005 504,645 ____________
1.75
Finland US$5,000,000
OKO Bank EMTN FRN 18/11/2009
France US$5,000,000 US$500,000
5,505,867 ____________
0.18 ______ 1.93 ______
Germany US$4,000,000
Deutsche Bank FRN 21/3/2007
4,006,200 ____________
1.40 ______
MTR 7.25% 1/10/2005
US$80,000
US$5,000,000 US$5,000,000
3,328,382 ____________
1.16 ______
US$4,500,000 US$250,000 US$1,044,000 US$1,463,000 US$5,000,000 US$2,000,000
6,995,450 ____________
2.45 ______
10,387,499 ____________
3.63 ______
US$250,000
Ireland US$7,000,000
Irish Life & Permanent EMTN FRN 25/5/2010
Kansai Electric Power EMTN 7.25% 25/9/2006
US$8,000,000 US$10,000,000
0.76 1.75 1.75 ______
22,261,698 ____________
7.79 ______
Bank One 7.625% 1/8/2005 10,036,500 CIT Group 7.625% 16/8/2005 5,027,500 Citigroup 5.75% 10/5/2006 1,197,216 Dresdner Bank (New York) 6.625% 15/9/2005 4,531,092 Fannie Mae 3.25% 28/6/2006 4,475,032 HSBC Bank USA New York FRN 14/12/2009 250,531 John Hancock Global Funding II EMTN 5.75% 25/7/2005 1,045,080 Lehman Brothers Holdings 6.25% 15/5/2006 1,490,212 McDonalds EMTN 6% 22/12/2005 5,041,478 Toyota Motor Credit EMTN 3.4% 8/8/2006 1,992,080 Toyota Motor Credit EMTN 4.05% 26/1/2006 6,508,580 Wells Fargo & Co FRN 3/3/2006 250,242 ____________ 41,845,543 ____________
3.51 1.76 0.42
2.28 0.09 ______ 14.63 ______
182,780,045 ____________
63.93 ______
9,948,250 ____________
3.48 ______
9,948,250 ____________
3.48 ______
Siemens Financieringsmaatschappij 0% 23/8/2005 9,948,250 ____________
3.48 ______
1.75 1.75 0.03
1.58 1.56 0.09 0.36 0.52 1.76 0.70
US$10,000,000
K2 Corporation 0% 23/8/2005
Germany
NIB Capital Bank EMTN FRN 12/5/2006 5,001,325 SNS Bank EMTN FRN 18/6/2008 8,026,800 Telefonica Europe 7.35% 15/9/2005 ____________ 10,073,638 23,101,763 ____________
Westlb Finance Curacao EMTN FRN 29/5/2007
0.70 1.77 ______ 7.72 ______
Cayman Islands
US$10,000,000 1.75 2.81 3.52 ______
HSH Nordbank 0% 23/8/2005
Netherlands US$10,000,000
8.08 ______
USA
Netherlands Antilles US$5,000,000
1,999,980 5,049,250 ____________ 22,073,730 ____________
COMMERCIAL PAPER
Netherlands US$5,000,000
%
Alliance & Leicester EMTN FRN 4/4/2007 5,009,750 Alliance & Leicester EMTN FRN 17/4/2008 5,010,646 HBOS Treasury Services EMTN FRN 4/4/2007 80,108 Landesbank Baden-Wuerttemberg Capital Markets EMTN 5.5% 23/2/2006 2,151,194 Lloyds TSB Bank EMTN FRN 8/2010 5,002,500 Northern Rock EMTN FRN 28/2/2006 ____________ 5,007,500
Total Bonds
Japan US$10,000,000
Value (US$)
USA US$10,000,000 US$5,000,000 US$1,179,000 US$4,507,000
US$6,500,000
Hong Kong US$3,300,000
US$5,000,000
0.13 1.75 ______ 1.88 ______
Description Nordea Bank Norge EMTN FRN 22/9/2005 Telenor EMTN 5.5% 8/3/2006
United Kingdom US$5,000,000
US$2,130,000
Canada US$10,000,000
Holding US$2,000,000
US$10,000,000 5,004,000 ____________
1.75 ______
Den Norske Bank EMTN FRN 17/1/2007 10,016,000 DnB NORBank EMTN FRN 28/3/2006 5,008,500
3.50 1.75
Paccar Financial 0% 14/7/2005
Total Commercial Paper Total Portfolio
9,987,094 ____________ 39,831,844 ____________
3.49 ______ 13.93 ______
222,611,889
77.86
63,317,643 ____________ 285,929,532 ____________
22.14 ______ 100.00 ______
Norway US$10,000,000 US$5,000,000
Other Net Assets Total Net Assets (US$)
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
145
US Flexible Equity Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) USA 340,000 360,000 320,000 70,000 450,000 60,000 160,000 740,000 73,000 100,000 320,000 240,000 190,000 1,010,000 630,000 540,000 130,000 110,000 280,000 470,000 2,540,000 170,000 320,000 120,000 870,000 480,000 770,000 590,000 440,000 290,000 200,000 550,000 130,000 480,000 840,000 387,000 1,540,000 630,000 560,000 700,000 1,020,000 480,000 410,000 175,900 90,000 480,000 1,520,000 520,000 851,000 1,320,000 470,000 70,000
146
Abercrombie & Fitch ‘A’ Advance Auto Parts Aetna Allmerica Financial Allstate Altria Group Amerada Hess American Eagle Outfitters American Financial Group/OH AmerisourceBergen Anadarko Petroleum Apache Applera – Applied Biosystems Group Archer-Daniels-Midland Autodesk Autonation Autozone Avnet Bank of America Barr Pharmaceuticals BEA Systems Bear Stearns Becton Dickinson & Co Berkley (WR) BMC Software Burlington Resources Cadence Design Systems Caremark Rx Checkfree Chubb Cigna Circuit City Stores Cisco Systems Citigroup Citrix Systems Computer Associates International Compuware ConocoPhillips CSX Darden Restaurants Dell Devon Energy Eastman Chemical* Edison International* Energizer Holdings Express Scripts Exxon Mobil Fiserv Ford Motor General Electric* HCA HCC Insurance Holdings
23,548,400 23,486,400 26,726,400 2,618,000 26,950,500 3,924,000 17,289,600 23,176,800 2,461,560 6,912,000 26,252,800 15,652,800 3,817,100 21,896,800 22,029,210 11,242,800 12,194,000 2,508,000 12,882,800 23,109,900 22,529,800 17,880,600 16,777,600 4,311,600 15,747,000 26,688,000 10,595,200 26,249,100 14,911,600 25,073,400 21,762,000 9,608,500 2,522,000 22,488,000 18,354,000 10,712,160 10,918,600 36,577,800 24,197,600 23,100,000 40,555,200 24,312,000 22,857,500 7,141,540 5,605,200 24,254,400 88,540,000 22,469,200 8,875,930 46,318,800 27,053,200 2,669,800
Merrill Lynch International Investment Funds
1.09 1.08 1.23 0.12 1.24 0.18 0.80 1.07 0.11 0.32 1.21 0.72 0.18 1.01 1.01 0.52 0.56 0.12 0.59 1.06 1.04 0.82 0.77 0.20 0.73 1.23 0.49 1.21 0.69 1.16 1.00 0.44 0.12 1.04 0.85 0.49 0.50 1.69 1.11 1.06 1.87 1.12 1.05 0.33 0.26 1.12 4.08 1.04 0.41 2.13 1.25 0.12
Holding
Description
1,220,000 600,000 970,000 460,000 290,000 320,000 870,000 50,000 300,000 48,000
Hewlett-Packard Humana Intel Intuit Invitrogen ITT Educational Services Johnson & Johnson JPMorgan Chase & Co Kerr-McGee Laboratory Corporation of America Holdings Lam Research Lehman Brothers Holdings Lennar ‘A’ Marathon Oil McAfee McKesson Mercury Interactive Metlife MGM Mirage Michaels Stores Microsoft Monsanto Motorola NCR Noble Energy Nordstrom Northrop Grumman Nucor* NVIDIA NVR Occidental Petroleum Omnicom Group Oracle Pacific Sunwear of California Pacificare Health Systems Penney (JC) Holdings PepsiAmericas Pfizer Pilgrims Pride Precision Castparts Principal Financial Group Procter & Gamble Prudential Financial QLogic Quest Diagnostics* Raytheon* Rockwell Automation Ryland Group Sabre Holdings ‘A’ Safeco Staples Storage Technology Sun Microsystems
640,000 280,000 90,000 480,000 880,000 580,000 580,000 570,000 200,000 560,000 820,000 400,000 1,450,000 520,000 100,000 350,000 82,000 440,000 790,000 30,000 350,000 50,000 1,930,000 780,000 340,000 460,000 93,000 707,000 390,000 50,000 160,000 80,000 440,000 460,000 440,000 640,000 420,000 120,000 475,000 138,000 499,500 500,000 4,150,000
Value (US$)
%
29,145,800 23,880,000 25,501,300 20,897,800 24,429,600 17,206,400 57,045,900 1,793,000 23,019,000
1.34 1.10 1.17 0.96 1.13 0.79 2.63 0.08 1.06
2,412,480 18,688,000 27,938,400 5,709,600 26,035,200 23,372,800 25,914,400 22,446,000 25,997,700 8,002,000 23,189,600 20,565,600 25,164,000 26,984,500 18,626,400 7,636,000 24,017,000 4,587,080 20,979,200 21,306,300 24,375,000 27,373,500 4,016,500 25,919,900 18,689,580 24,537,800 24,315,600 2,370,570 19,583,900 13,377,000 3,962,000 6,755,200 4,265,600 29,053,200 14,195,600 23,623,600 25,209,600 20,500,200 9,180,000 9,609,250 7,576,200 10,849,140 18,185,000 15,604,000
0.11 0.86 1.29 0.26 1.20 1.08 1.19 1.03 1.20 0.37 1.07 0.95 1.16 1.24 0.86 0.35 1.11 0.21 0.97 0.98 1.12 1.26 0.19 1.19 0.86 1.13 1.12 0.11 0.90 0.62 0.18 0.31 0.20 1.34 0.65 1.09 1.16 0.94 0.42 0.44 0.35 0.50 0.84 0.72
US Flexible Equity Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
210,000 160,000 490,000 920,000 410,000 660,000 1,250,000 340,000 1,690,000 440,000 460,000
Sunoco Sybase Texas Instruments Williams Timberland ‘A’ UnitedHealth Group UnumProvident Valero Energy Western Digital Xerox Yellow Roadway
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market (*)
Unquoted Securities
Value (US$)
%
24,150,000 2,955,200 13,837,600 17,388,000 15,895,700 35,237,400 22,987,500 26,897,400 23,051,600 6,212,800 23,763,600 _____________
1.11 0.14 0.64 0.80 0.73 1.62 1.06 1.24 1.06 0.29 1.10 ______
2,188,333,000 _____________
100.82 ______
Holding
Description
Value (US$)
%
Total Unquoted Securities
573 _____________ 573 _____________
0.00 ______ 0.00 ______
Total Portfolio
2,188,333,573
100.82
Other Net Liabilities
(17,840,332) _____________ 2,170,493,241 _____________
(0.82) ______ 100.00 ______
COMMON STOCKS (SHARES) USA 573,000
World Access (Restricted)
Total Net Assets (US$)
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Information technology Healthcare Energy Consumer discretionary Finance Industrials Materials Consumer staples Utilities Other net liabilities
% of net assets 25.4 19.0 17.9 14.8 11.0 6.8 3.2 2.4 0.3 (0.8) ____________
Hedged Share Class Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases e440,740,263 US$429,859,680 Net unrealised loss
Sales US$561,589,700 e349,000,558
Unrealised profit/(loss) Value date e 16/8/2005 (24,432,805) 16/8/2005 __________ 7,058,582 (17,374,223) __________
Note: The US$ equivalent - US$20,945,417 - of the net unrealised loss attributed to these transactions is included above in Other Net Liabilities (see Note 2c). As at the 30 June 2005, the exchange rate used to convert from e is: 1 US$ = 0.8295 Euros.
100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
147
US Focused Value Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Bermuda 1,438,900
Tyco International
42,188,548 ____________
3.97 ______
18,859,616 ____________
1.77 ______
11,294,569 24,849,587 ____________ 36,144,156 ____________
1.06 2.34 ______ 3.40 ______
11,876,858 33,581,541 37,508,774 14,902,447 37,908,340 37,120,028 22,935,159 30,899,176 21,991,390 14,894,078 12,401,728 28,169,700 32,387,656 19,323,062 24,739,998
1.12 3.16 3.53 1.40 3.56 3.49 2.16 2.91 2.07 1.40 1.17 2.65 3.05 1.81 2.33
Cayman Islands 1,081,400
Seagate Technology
United Kingdom 271,700 508,900
AstraZeneca ADR GlaxoSmithKline ADR
USA 3,280,900 2,743,590 640,300 913,700 1,293,800 4,184,896 861,900 4,504,253 469,400 666,700 3,017,452 483,600 1,181,600 507,700 1,233,300
3Com Agere Systems American International Group Applied Materials Bank of New York BEA Systems BellSouth Borland Software Citigroup Coca-Cola Enterprises Extreme Networks Exxon Mobil Foot Locker Freeport-McMoRan Copper & Gold ‘B’ Gap
Sector Breakdown as at 30 June 2005
Information technology Finance Consumer discretionary Materials Capital goods Energy Consumer staples Telecommunication services Healthcare Industrials Other net liabilities
% of net assets 29.7 20.7 14.0 9.0 7.8 6.0 4.3 3.7 3.4 3.2 (1.8) ____________ 100.0 ____________
148
Merrill Lynch International Investment Funds
Holding
Description
Value (US$)
%
831,500 129,500 1,252,800 1,759,800 958,824 3,519,220 7,426,400 495,300 582,700 423,600 1,351,000 1 412,300 4,559,224 576,000 1,186,300 644,900 863,885 2,038,500 3,127,751 2,313,000 5,796,800
GlobalSantaFe 33,833,735 Goodrich 5,410,510 International Paper 38,886,912 Interpublic Group of Companies 21,346,374 JPMorgan Chase & Co 34,383,429 Liberty Media ‘A’ 35,966,428 LSI Logic 64,683,944 Macquarie Infrastructure Company Trust 14,076,426 Mellon Financial 16,740,971 Morgan Stanley 22,577,880 Motorola 25,142,110 Neenah Paper 31 Norfolk Southern 12,954,466 Parametric Technology 29,817,325 Raytheon 22,688,640 Rowan 35,672,041 Sprint (FON Group) 16,296,623 St Paul Travelers 34,520,845 Time Warner 34,165,260 Topps 31,277,510 UAP Holding 37,725,030 Unisys 36,461,871 _____________ 985,268,296 _____________
3.18 0.51 3.66 2.01 3.23 3.38 6.08 1.32 1.57 2.12 2.36 0.00 1.22 2.80 2.13 3.35 1.53 3.25 3.21 2.94 3.55 3.43 ______
Total Portfolio
1,082,460,616
92.64 ______ 101.78
Other Net Liabilities
(18,978,692) _____________ 1,063,481,924 _____________
(1.78) ______ 100.00 ______
Total Net Assets (US$)
Hedged Share Class Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases e14,940,699 US$11,972,100 Net unrealised loss
Sales US$19,086,100 e9,495,742
Unrealised profit/(loss) Value date e 16/8/2005 (868,601) 16/8/2005 __________ 420,926 (447,675) __________
Note: The US$ equivalent - US$539,693 - of the net unrealised loss attributed to these transactions is included above in Other Net Liabilities (see Note 2c). As at the 30 June 2005, the exchange rate used to convert from e is: 1 US$ = 0.8295 Euros.
US Government Mortgage Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
BONDS USA US$8,081,092 US$1,000,000 US$2,911,334 US$232,616 US$5,888,000 US$7,250,890 US$1,000,000 US$2,995,976 US$5,483,483 US$557,109 US$3,000,000 US$1,178,444 US$2,460,804 US$824,800 US$4,729,104 US$612,109 US$4,118,405 US$6,512,374 US$49,929 US$80,688 US$2,713 US$23,835 US$10,390 US$6,801 US$154,723 US$92,891 US$21,852 US$40,405 US$51,004 US$153,189 US$43,718 US$37,330 US$447,279 US$754,702 US$693,240 US$773,853 US$55,707 US$11,783 US$56,218 US$26,463 US$7,501 US$2,204 US$2,545,132 US$92,442 US$161,717 US$22,272 US$134,773 US$55,397 US$297,742 US$2,682 US$11,015 US$93,555 US$22,129 US$13,922 US$17,353 US$10,402
Fannie Mae Pool 3.61% 25/6/2028 4.5% 8/1/2035 5% 4/1/2018 5% 6/1/2018 5% 8/1/2035 5% 1/2/2018 5% 15/5/2018 5% 30/7/2033 5% 5/1/2034 5% 8/1/2019 5.5% 4/1/2034 5.5% 11/1/2017 5.5% 1/1/2018 5.5% 11/1/2018 5.5% 5/1/2033 5.5% 8/1/2033 5.5% 12/1/2034 5.5% 1/7/2033 6% 10/1/2008 6% 11/1/2010 6% 4/1/2011 6% 5/1/2011 6% 6/1/2011 6% 10/1/2011 6% 12/1/2011 6% 3/1/2012 6% 7/1/2012 6% 11/1/2012 6% 3/1/2013 6% 4/1/2013 6% 5/1/2013 6% 6/1/2013 6% 9/1/2013 6% 6/1/2014 6% 1/1/2018 6.5% 7/1/2032 6.5% 9/1/2025 6.5% 1/1/2026 6.5% 2/1/2026 6.5% 10/1/2027 6.5% 11/1/2027 6.5% 2/1/2028 6.5% 7/1/2032 7% 10/1/2014 7% 2/1/2015 7% 3/1/2027 7% 9/1/2029 7% 10/1/2029 7% 7/1/2032 7.5% 8/1/2025 7.5% 10/1/2025 7.5% 6/1/2026 7.5% 8/1/2026 7.5% 10/1/2026 7.5% 8/1/2027 7.5% 9/1/2027
8,096,125 974,375 2,942,765 235,127 5,865,920 7,329,172 1,010,469 2,992,699 5,483,052 563,092 3,042,159 1,210,260 2,527,241 846,961 4,795,562 620,711 4,174,868 6,603,892 51,361 83,490 2,808 24,669 10,751 7,037 160,137 96,108 22,609 41,804 52,775 158,494 45,236 38,626 462,810 780,907 716,681 802,427 57,904 12,237 58,414 27,474 7,788 2,288 2,637,447 96,915 169,542 23,536 142,249 58,470 314,073 2,875 11,805 100,265 23,717 14,921 18,583 11,140
6.09 0.73 2.21 0.18 4.41 5.51 0.76 2.25 4.13 0.42 2.29 0.91 1.90 0.64 3.61 0.47 3.14 4.97 0.04 0.06 0.00 0.02 0.01 0.01 0.12 0.07 0.02 0.03 0.04 0.12 0.03 0.03 0.35 0.59 0.54 0.60 0.04 0.01 0.04 0.02 0.01 0.00 1.98 0.07 0.13 0.02 0.11 0.04 0.24 0.00 0.01 0.08 0.02 0.01 0.01 0.01
US$35,573 US$12,413 US$35,009 US$5,999 US$374,622 US$29,057 US$491 US$3,788 US$2,884 US$9,849 US$8,517 US$5,829 US$3,000,000 US$9,000,000 US$4,887,000 US$1,868,363 US$7,649,316 US$9,980,910 US$6,154,897 US$3,586,581 US$1,665,707 US$13,799,770 US$2,301,687 US$444,040 US$4,334,171 US$14,476 US$162,470 US$37,449 US$33,751 US$208,661 US$201,265 US$317,261 US$35,103 US$20,871 US$258,706 US$182,514 US$569,395 US$42,026 US$27,504 US$35,600 US$1,813 US$50,233 US$6,954 US$25,487 US$74,148 US$32,768 US$99,750 US$190,394 US$16,676 US$41,312 US$15,930 US$70,675 US$107,198 US$4,931 US$310,007
Description Fannie Mae Pool 7.5% 2/1/2027 7.5% 12/1/2027 7.5% 7/1/2029 7.5% 8/1/2029 7.5% 10/1/2029 8% 10/1/2022 8% 10/1/2025 8% 10/1/2026 8% 3/1/2027 8% 7/1/2027 8% 10/1/2027 8% 5/1/2030 Federal Home Loan Note Mortgage 4.5% 6/1/2020 Federal Home Loan Bank 3.52% 27/7/2005 FHLMC Gold 5.5% 30/8/2033 Freddie Mac (Gold) Pool 4.5% 9/1/2018 4.5% 1/3/2019 5% 1/5/2034 5.5% 1/4/2033 6% 8/1/2033 6% 7/1/2034 6% 1/8/2034 6.5% 10/1/2029 6.5% 8/1/2032 Ginnie Mae I Pool 5.5% 15/7/2033 6.5% 15/3/2026 6.5% 15/4/2026 6.5% 15/2/2027 6.5% 15/12/2027 6.5% 15/1/2028 6.5% 15/2/2028 6.5% 15/3/2028 6.5% 15/4/2028 6.5% 15/5/2028 6.5% 15/6/2028 6.5% 15/7/2028 6.5% 15/8/2028 6.5% 15/9/2028 6.5% 15/9/2028 7% 15/4/2024 7% 15/5/2024 7% 15/12/2025 7% 15/1/2027 7% 15/5/2027 7% 15/8/2027 7% 15/9/2027 7% 15/10/2027 7% 15/11/2027 7% 15/12/2027 7% 15/1/2028 7% 15/2/2028 7% 15/3/2028 7% 15/4/2028 7% 15/5/2028 7% 15/6/2028
Value (US$)
%
38,125 13,303 37,442 6,416 400,650 31,352 529 4,081 3,106 10,608 9,173 6,268
0.03 0.01 0.03 0.00 0.30 0.02 0.00 0.00 0.00 0.01 0.01 0.00
2,982,656
2.24
8,977,029 4,941,979
6.75 3.72
1,861,068 7,611,856 9,982,101 6,241,115 3,678,036 1,708,149 14,151,395 2,389,080 460,037
1.40 5.73 7.51 4.70 2.77 1.29 10.65 1.80 0.35
4,427,334 15,163 170,172 39,231 35,330 218,347 210,607 331,986 36,733 21,840 270,714 190,985 595,822 43,977 28,780 37,872 1,928 53,419 7,380 27,049 78,692 34,776 105,875 202,064 17,698 43,815 16,895 74,957 113,692 5,229 328,788
3.33 0.01 0.13 0.03 0.03 0.16 0.16 0.25 0.03 0.02 0.20 0.14 0.45 0.03 0.02 0.03 0.00 0.04 0.01 0.02 0.06 0.03 0.08 0.15 0.01 0.03 0.01 0.06 0.09 0.00 0.25
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
149
US Government Mortgage Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$26,800 US$34,137 US$33,811 US$57,141 US$30,432 US$1,269 US$17,805 US$9,585 US$600,904 US$1,130,513 US$61,204 US$81,918
150
Description Ginnie Mae Pool 7% 15/7/2028 7% 15/8/2028 7% 15/9/2028 7% 15/10/2028 7% 15/11/2028 7% 15/3/2029 7% 15/5/2029 7% 15/7/2029 7% 15/8/2029 7% 15/11/2029 7.5% 15/5/2029 7.5% 15/8/2029
Value (US$) 28,424 36,205 35,859 60,603 32,276 1,345 18,872 10,159 636,916 1,198,264 65,620 87,833
Merrill Lynch International Investment Funds
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market % 0.02 0.03 0.03 0.05 0.02 0.00 0.01 0.01 0.48 0.90 0.05 0.07
Holding US$111,078 US$13,514 US$17,783 US$123,159 US$336,916 US$139,329 US$619,966
Description Ginnie Mae Pool 7.5% 15/8/2030 7.5% 15/1/2031 7.5% 15/2/2031 7.5% 15/6/2031 8% 15/2/2031 8% 15/9/2031 8% 15/3/2032
Total Portfolio Other Net Liabilities Total Net Assets (US$)
Value (US$)
%
119,080 14,483 19,057 131,986 363,887 150,483 669,945 _____________
0.09 0.01 0.01 0.10 0.27 0.11 0.50 ______
143,678,824
108.09
(10,756,856) _____________ 132,921,968 _____________
(8.09) ______ 100.00 ______
US Growth Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Sweden 46,800
Telefonaktiebolaget LM Ericsson ADR
1,513,980 ____________
1.18 ______
5,657,940 ____________
4.43 ______
5,479,245 1,973,118 1,766,970 1,507,050 1,699,392 1,716,173 1,886,044 2,000,200 1,530,456 1,540,000 1,430,716 1,419,555 1,429,304 1,456,005 275,964 1,346,128 3,022,542 1,730,566 1,452,726 1,060,152 1,607,008 6,351,290 1,878,660 1,438,297 488,400 2,103,718 481,740 1,303,400 4,957,092
4.29 1.54 1.38 1.18 1.33 1.34 1.48 1.56 1.20 1.21 1.12 1.11 1.12 1.14 0.22 1.05 2.36 1.35 1.14 0.83 1.26 4.97 1.47 1.13 0.38 1.65 0.38 1.02 3.88
Switzerland 51,600
Alcon
USA 74,700 32,700 29,000 39,400 33,400 37,300 28,400 73,000 34,400 28,000 14,800 30,300 42,400 85,900 6,100 20,200 66,900 39,100 36,300 16,300 20,800 181,000 42,600 4,900 18,500 43,700 18,500 13,300 75,600 (*)
3M Air Products & Chemicals Amgen Avon Products Baker Hughes Bank of America Boeing Boston Scientific Caremark Rx Carnival (Units) Caterpillar Citigroup Coach Corning Covance Deere & Co Dow Chemical* EI Du Pont de Nemours & Co First Data Fisher Scientific International Franklin Resources General Electric* Gilead Sciences Google ‘A’ Grant Prideco Halliburton Hewitt Associates ‘A’ ITT Industries Johnson & Johnson
Holding 26,200 38,300 50,800 49,000 197,600 9,600 21,500 26,300 15,500 43,500 38,300 44,400 58,800 38,000 35,700 97,500 35,400 36,000 5,200 42,300 66,300 45,300 40,300 51,100 15,200 42,000 19,100 23,400 67,600 27,800
Description Lockheed Martin Marriott International ‘A’ McCormick & Co (Non Voting Shares) Medtronic Microsoft MSC Industrial Direct ‘A’ Nalco Holding National Oilwell Varco Nike ‘B’ Pall PepsiCo Praxair Procter & Gamble Schlumberger St Jude Medical Staples Starbucks Starwood Hotels & Resorts Worldwide (Units) Station Casinos Transocean UnitedHealth Group US Bancorp Varian Medical Systems Walt Disney Waters WellPoint WM Wrigley Jr. Wynn Resorts Yahoo! Yum! Brands
Total Portfolio Other Net Assets Total Net Assets (US$)
Value (US$)
%
1,700,904 2,623,933 1,614,932 2,545,060 4,955,808 320,736 421,615 1,247,409 1,347,725 1,335,885 2,077,392 2,106,780 3,135,216 2,906,620 1,577,940 2,117,700 1,842,924
1.33 2.05 1.26 1.99 3.88 0.25 0.33 0.98 1.05 1.04 1.63 1.65 2.45 2.27 1.23 1.66 1.44
2,112,840 350,272 2,302,389 3,539,757 1,344,051 1,510,444 1,308,671 570,912 2,977,800 1,317,900 1,152,684 2,337,608 1,453,662 ____________
1.65 0.27 1.80 2.77 1.05 1.18 1.02 0.45 2.33 1.03 0.90 1.83 1.14 ______
112,489,480 ____________ 119,661,400
88.00 ______ 93.61
8,169,087 ____________ 127,830,487 ____________
6.39 ______ 100.00 ______
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Healthcare Capital goods Consumer discretionary Information technology Consumer staples Energy Materials Finance Other net assets
% of net assets 22.5 21.2 11.2 9.2 9.0 8.0 7.7 4.8 6.4 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
151
US Opportunities Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) British Virgin 15,500
UTI Worldwide
1,083,605 ____________
0.74 ______
340,879 ____________
0.23 ______
1,116,350 815,348 ____________ 1,931,698 ____________
0.76 0.55 ______ 1.31 ______
1,730,379 170,560 1,717,080 1,772,793 1,711,340 1,135,120 1,154,722 754,380 779,025 1,695,075 1,471,314 1,849,315 696,570 1,325,450 1,057,268 1,366,108 742,256 789,450 833,160 1,170,527 1,343,000 855,015 1,056,825 1,349,632 1,460,920 2,264,446 1,250,010 13,060 773,696 496,496 226,504 1,527,174 1,165,624 1,775,298 1,652,494 1,798,668 1,306,200 1,706,664 1,447,040 1,770,309 1,974,527 2,199,120 624,936 1,597,940 1,191,610 757,340 1,006,938
1.18 0.12 1.17 1.20 1.16 0.77 0.78 0.51 0.53 1.15 1.00 1.26 0.47 0.90 0.72 0.93 0.50 0.54 0.57 0.79 0.91 0.58 0.72 0.92 0.99 1.54 0.85 0.01 0.53 0.34 0.15 1.04 0.79 1.21 1.12 1.22 0.89 1.16 0.98 1.20 1.34 1.49 0.42 1.09 0.81 0.51 0.68
Canada 11,000
CryptoLogic
Israel 53,800 41,200
Aladdin Knowledge Systems M-Systems Flash Disk Pioneers
USA 35,700 10,400 123,000 51,700 82,000 56,000 46,300 16,500 22,100 48,500 50,700 29,900 21,700 24,500 40,400 47,900 36,800 27,700 52,400 22,300 39,500 35,700 22,500 65,900 57,950 29,100 28,500 1,079 35,200 40,300 9,200 16,200 33,914 49,150 16,300 61,200 93,300 56,400 54,400 37,900 29,300 83,300 31,200 218,000 20,300 38,000 26,100
152
Actuant ‘A’ Adeza Biomedical Alamosa Holdings Amedisys American Tower ‘A’ Animas AnnTaylor Stores Anteon International ARGON ST Arthrocare ATMI Atwood Oceanics Aviall Avid Technology Avocent Beacon Roofing Supply BJ’s Restaurants Blue Coat Systems Builders FirstSource Cal Dive International Centene Ceradyne Childrens Place Retail Stores Cohen & Steers Coldwater Creek Corporate Executive Board CoStar Group Cumulus Media ‘A’ CV Therapeutics DexCom DSW ‘A’ Eagle Materials East West Bancorp Engineered Support Systems ESCO Technologies Euronet Worldwide ev3 Flir Systems Formfactor Gaylord Entertainment Global Payments Grant Prideco Great Wolf Resorts Grey Wolf Guitar Center Healthcare Services Group Hibbett Sporting Goods
Merrill Lynch International Investment Funds
Holding
Description
38,650 34,900 38,850 64,200 31,873 25,600 300 75,600 51,200 46,950 35,200 77,200 47,400 38,500 26,300 40,900 34,200 44,400 3,300 95,400 55,500 14,200 49,300 105,000 64,400 41,700 35,400 37,207 60,600 40,800 52,600 42,000 43,400 90,700 162,000 103,100 11,000 35,500 32,800 32,500 28,100 48,800 17,400 38,500 21,900 34,100 34,500 44,200 30,600 52,300 45,100 54,100 1,732,200 23,200 29,500 25,400 29,100 33,000 18,700 27,400
Immucor j2 Global Communications Joy Global Jupitermedia Kanbay International Kos Pharmaceuticals Kronos La Quinta Life Time Fitness Men’s Wearhouse MGI Pharma Microsemi Mikohn Gaming Mobile Mini National Financial Partners Navigant Consulting NeuStar ‘A’ NS Group NuVasive OMI Oregon Steel Mills Oshkosh Truck Pantry Pioneer Drilling Prestige Brands Holdings ProAssurance Protein Design Labs Psychiatric Solutions Range Resources Red Robin Gourmet Burgers Resources Connection Respironics SafeNet Salesforce.com SBA Communications ‘A’ Scientific Games ‘A’ Sierra Health Services SonoSite Spectrasite Spectrum Brands SRA International ‘A’ SS&C Technologies Standard-Pacific Station Casinos Stericycle Stratasys SVB Financial Group Tekelec Texas Roadhouse ‘A’ Trident Microsystems Ultimate Software Group Ultra Petroleum United Medicorp United Surgical Partners International United Therapeutics UNOVA VCA Antech Ventana Medical Systems Verint Systems Vineyard National Bancorp
Value (US$)
%
1,080,268 1,188,345 1,344,210 1,102,314 720,330 1,683,942 12,393 709,884 1,711,104 1,626,348 767,360 1,466,028 703,416 1,308,615 1,038,587 742,335 897,408 1,470,528 54,945 1,834,542 979,575 1,113,280 1,919,249 1,590,750 1,257,732 1,730,550 715,434 1,809,748 1,648,320 2,533,680 1,194,020 1,515,360 1,484,280 1,892,909 2,154,600 2,803,289 788,150 1,104,405 2,426,544 1,066,000 986,872 1,557,696 1,530,330 2,593,360 1,111,425 1,121,208 1,682,910 748,306 1,070,694 1,178,319 748,660 1,623,000 86,610 1,226,352 1,436,060 694,690 701,601 1,319,670 597,465 886,116
0.73 0.81 0.91 0.75 0.49 1.14 0.01 0.48 1.16 1.10 0.52 1.00 0.48 0.89 0.71 0.50 0.61 1.00 0.04 1.25 0.67 0.76 1.30 1.08 0.85 1.18 0.49 1.23 1.12 1.72 0.81 1.03 1.01 1.29 1.46 1.90 0.54 0.75 1.65 0.72 0.67 1.06 1.04 1.76 0.75 0.76 1.14 0.51 0.73 0.80 0.51 1.10 0.06 0.83 0.98 0.47 0.48 0.90 0.41 0.60
US Opportunities Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 48,100 29,200 16,600 39,600 1,500 65,000 88,400 64,600
Description
Value (US$)
%
Vnus Medical Technologies Waste Connections Watsco WellCare Health Plans Westlake Chemical Wilshire Bancorp Wind River Systems Wolverine World Wide
579,124 1,093,248 720,938 1,411,740 37,515 952,250 1,414,400 1,569,780 ____________
0.39 0.74 0.49 0.96 0.03 0.65 0.96 1.07 ______
142,384,494 ____________ 145,740,676
96.73 ______ 99.01
1,452,129 ____________ 147,192,805 ____________
0.99 ______ 100.00 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
Sector Breakdown as at 30 June 2005
Capital goods Information technology Consumer discretionary Healthcare Finance Materials Energy Telecommunication services Consumer staples Other net assets
% of net assets 25.1 22.5 16.9 15.2 7.3 5.6 4.1 1.8 0.5 1.0 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
153
US SmallCap Value Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) & WARRANTS Bermuda 59,900
WP Stewart & Co
1,448,981 ____________
0.77 ______
158,814 ____________
0.08 ______
Canada 10,200
Vitran
USA 68,300 35,600 88,900 16,700 65,100 33,000 29,600 60,900 6,300 276,300 5,300 16,100 64,600 16,500 35,500 20,200 13,100 7,300 44,800 67,500 40,800 43,100 12,500 48,400 12,800 161,200 246,400 39,500 201,800 389,500 77,700 40,400 68,500 1,000 21,000 175,200 63,600 46,800 28,300 37,600 10,500 330,760 19,450 16,700 99,000 8,500 44,300 16,900 98,600 24,800
154
1-800-FLOWERS.COM ‘A’ Actel Administaff AGCO Agile Software Ambassadors Group Ambassadors International American Axle & Manufacturing Holdings American National Insurance Anadigics Anaren Anchor Bancorp Wisconsin Anixter International Applera - Celera Genomics Group Applied Industrial Technologies Aspen Technology Bank of Hawaii Banner BearingPoint Belden CDT Bob Evans Farms Brandywine Realty Trust Central Parking Century Business Services Cephalon Colonial BancGroup CommScope Compass Bancshares Conseco Convergys Cornell Corrections Corporation of America Crown Holdings Curtiss-Wright Cytec Industries Del Monte Foods Denbury Resources Diamond Offshore Drilling Dime Community Bancshares Dollar Tree Stores DSW “A” E.piphany Fidelity Bankshares First Merchants First Midwest Bancorp FirstFed Financial Fluor FMC Technologies Foot Locker Franklin Bank/Houston TX
482,198 499,468 2,115,820 326,652 419,895 1,285,680 406,704 1,517,628 715,491 480,762 71,762 483,805 2,428,960 179,520 1,151,265 106,454 668,100 209,072 328,832 1,421,550 948,600 1,318,860 173,250 194,084 500,864 3,639,896 4,366,208 1,776,315 4,439,600 5,464,685 1,062,936 1,593,376 984,345 54,630 840,420 1,834,344 2,514,744 2,504,268 440,631 917,440 258,510 1,134,507 518,537 417,500 3,513,510 508,980 2,600,410 543,504 2,702,626 469,960
Merrill Lynch International Investment Funds
0.26 0.27 1.13 0.17 0.22 0.68 0.22 0.81 0.38 0.26 0.04 0.26 1.29 0.10 0.61 0.06 0.36 0.11 0.17 0.76 0.51 0.70 0.09 0.10 0.27 1.94 2.33 0.95 2.36 2.91 0.57 0.85 0.52 0.03 0.45 0.98 1.34 1.33 0.23 0.49 0.14 0.60 0.28 0.22 1.87 0.27 1.39 0.29 1.44 0.25
Holding 34,700 17,100 45,400 68,350 14,200 23,400 45,200 32,200 136,500 84,300 11,400 113,400 47,000 25,300 21,000 29,600 119,000 20,100 142,100 92,600 154,700 393,800 282,000 700 96,000 8,800 28,500 126,400 77,000 71,800 147,300 56,300 117,500 15,900 43,600 56,800 80,200 25,100 30,000 54,500 118,985 23,400 104,000 37,500 57,200 40,100 83,200 55,800 110,600 52,700 63,200 41,100 90,700 45,900 13,600 10,400 52,900 45,200
Description Friedman Billings Ramsey Group ‘A’* Furniture Brands International General Cable Gibraltar Industries Global Power Equipment Group Hain Celestial Group Harte-Hanks Hayes Lemmerz International Hooper Holmes Human Genome Sciences Inamed Ingram Micro ‘A’ Integrated Device Technology InterVoice Invacare Jack Henry & Associates Janus Capital Group JM Smucker – New Kansas City Southern Kaydon Key Energy Services King Pharmaceuticals La Quinta LifePoint Hospitals Linens ‘N Things Marten Transport Martin Marietta Materials Matrixone Mattson Technology Maverick Tube Maxygen McDermott International Medicis Pharmaceutical ‘A’ Mid-State Bancshares NCO Group NetIQ Neurogen NeuStar ‘A’ Noble Energy NU Horizons Electronics Old National Bancorp/IN Parexel International Paxson Communications Pier 1 Imports Plains Exploration & Production Presidential Life Protective Life RailAmerica Reader’s Digest Association Reliance Steel & Aluminum Rowan Ruby Tuesday Sabre Holdings ‘A’ Scholastic Schulman (A.) Simpson Manufacturing Smithfield Foods Smurfit-Stone Container
Value (US$)
%
492,046 369,360 685,086 1,277,462 114,168 454,662 1,334,756 232,806 577,395 967,764 758,100 1,752,030 515,590 224,664 926,100 544,640 1,823,080 948,921 2,917,313 2,586,318 1,882,699 4,111,272 2,647,980 35,518 2,296,320 187,088 1,991,010 634,528 554,400 2,141,794 1,026,681 1,194,123 3,676,575 452,355 957,020 648,088 561,400 658,624 2,290,800 348,800 2,564,127 449,280 62,400 540,375 2,044,900 703,755 3,527,680 672,390 1,855,868 1,991,533 1,900,424 1,073,121 1,834,861 1,790,100 244,528 322,400 1,445,757 472,340
0.26 0.20 0.36 0.68 0.06 0.24 0.71 0.12 0.31 0.52 0.40 0.93 0.27 0.12 0.49 0.29 0.97 0.51 1.55 1.38 1.00 2.19 1.41 0.02 1.22 0.10 1.06 0.34 0.30 1.14 0.55 0.64 1.96 0.24 0.51 0.35 0.30 0.35 1.22 0.19 1.37 0.24 0.03 0.29 1.09 0.37 1.88 0.36 0.99 1.06 1.01 0.57 0.98 0.95 0.13 0.17 0.77 0.25
US SmallCap Value Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding 131,500 31,900 27,000 7,400 10,400 40,799 39,300 27,700 26,292 104,900 34,800 290,840 126,100 22,700 83,600 118,400 89,500 57,200 8,500 25,800 39,000 106,600 (*)
Description Sovereign Bancorp Spherion Spinnaker Exploration Standard Microsystems Sterling Financial/WA Stone Energy Susquehanna Bancshares Talbots TD Banknorth Tech Data Teleflex Tellabs Tetra Tech Texas Capital Bancshares TIBCO Software Triumph Group Trizec Properties* UBS (Call Wts 31/3/2006 – Basket US Shares) United Rentals URS Valspar Vical
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Holding
2,962,695 213,730 976,320 174,862 388,336 1,990,991 976,605 915,485 781,924 3,851,928 2,074,080 2,565,209 1,707,394 458,540 547,572 4,178,336 1,802,530
1.58 0.11 0.52 0.09 0.21 1.06 0.52 0.49 0.42 2.05 1.10 1.37 0.91 0.24 0.29 2.23 0.96
201,840 14,800 666,200 54,800 33,100 54,100 81,200 87,000
2,883,452 172,720 974,724 1,880,190 485,030
1.54 0.09 0.52 1.00 0.26
Description
Value (US$)
%
Vignette Vintage Petroleum WebMD Webster Financial Wheeling-Pittsburgh Wolverine Tube Wright Medical Group Zoran
2,321,180 453,176 6,808,563 2,574,504 519,008 311,616 2,150,176 1,150,140 ____________
1.24 0.24 3.63 1.37 0.28 0.17 1.15 0.61 ______
184,083,349 ____________ 185,691,144 ____________
98.08 ______ 98.93 ______
496,275 ____________ 496,275 ____________
0.27 ______ 0.27 ______
186,187,419
99.20
1,507,201 ____________ 187,694,620 ____________
0.80 ______ 100.00 ______
Total Common Stocks (Shares) & Warrants
FUNDS USA 7,800
iShares Dow Jones US Real Estate Index Fund
Total Funds Total Portfolio Other Net Assets Total Net Assets (US$)
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Finance Consumer discretionary Industrials Healthcare Information technology Energy Materials Consumer staples Telecommunication services Utilities Other net assets
% of net assets 24.7 15.2 14.2 12.1 11.8 8.5 6.5 2.8 2.1 1.3 0.8 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
155
World Bond Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
Australia £60,000
Australia & New Zealand Bank Group EMTN 4.75% 7/12/2018 106,776 ____________
Republic of Austria ’2’ 4.65% 15/1/2018
1,158,126 ____________
3.02 ______
0.42 ______
Canadian Government ’WL43’ 5.75% 1/6/2029 386,802 ____________
1.01 ______
Cayman Islands e130,000 US$140,000
CAM International EMTN 5.75% 3/4/2012 Hutchison Whampoa International 03/33 5.45% 24/11/2010
165,814
e150,000 e50,000
CODELCO – Corporacion Nacional del Cobre de Chile 6.375% 30/11/2012
Nykredit Realkredit 4.901% 22/9/2014 (Perpetual)
144,733 ____________ 310,547 ____________
0.38 ______ 0.81 ______
e70,000 e100,000 e85,000
132,162 ____________
0.34 ______
129,858 ____________
e250,000
0.34 ______
Sampo 4.625% 21/4/2014
203,496 ____________
0.53 ______
e110,000 e200,000
France e150,000 e190,000 e100,000 e822,000 e55,000
BNP Paribas EMTN 5.25% 17/12/2012 205,483 CIF Euromortgage EMTN 4.5% 10/12/2013 252,042 Gecina EMTN 3.625% 17/10/2007 123,044 Government of France 4.5% 12/7/2006 1,016,426 Veolia Environnement EMTN 5.875% 27/6/2008 72,660 ____________
e170,000 e370,000 e92,000 e313,000 e660,000 e727,000 e150,000 e472,000 e185,000 e1,140,000 e191,000
156
Bayer EMTN 6% 10/4/2012 Coca-Cola Erfrischungsgetraenke 5.875% 4/7/2005 Germany 3.25% 17/4/2009 Germany ’00’ 5.25% 4/1/2011 Germany ’01’ 5% 4/7/2011 Germany ’02’ 5% 4/1/2012 Germany ’04’ 3.75% 4/1/2015 Germany ’05’ 4% 4/1/2037 Germany ’98’ 4.75% 4/7/2008 Germany ’99’ 3.75% 4/1/2009 Germany ’99’ 5.375% 4/1/2010 Germany ’139’ 4% 16/2/2007 Robert Bosch EMTN 5.25% 19/7/2006
0.48 ______
Resona Bank EMTN 3.75% 15/4/2015 182,429 Sumitomo Mitsui Banking 4.375% 27/10/2014 63,302 ____________ 245,731 ____________
0.48
ASIF III (Jersey) EMTN 5.125% 10/5/2007
253,142 ____________
Europaische Hypothekenbank Luxembourg EMTN 4.25% 13/5/2010 301,080 Holcim Finance EMTN 4.375% 23/6/2010 89,699 SES Global 4.5% 19/11/2008 126,524 Telecom Italia Finance EMTN 7.25% 24/4/2012 124,954 Tyco International Group 6.125% 4/4/2007 319,990 ____________ 962,247 ____________
0.53 0.66 0.32 2.65
1,669,655 ____________
0.19 ______ 4.35 ______
140,348
0.37
229,566 211,735 505,831 125,009 427,169 837,751 929,550 194,097 597,058 250,489 1,417,984 237,494
0.60 0.55 1.32 0.33 1.11 2.18 2.42 0.51 1.56 0.65 3.70 0.62
Merrill Lynch International Investment Funds
Securitas EMTN 6.125% 12/1/2006 135,175 Svenska Handelsbanken EMTN 5.5% 7/3/2011 246,330 ____________ 381,505 ____________
0.16 ______ 0.64 ______
0.66 ______
0.79 0.23 0.33 0.33 0.83 ______ 2.51 ______
0.35 0.64 ______ 0.99 ______
Netherlands e848,000 £80,000 US$380,000
Germany e100,000 e190,000
182,812 ____________
Westfield Capital ’144A’ 5.125% 15/11/2014
Sweden
Finland e160,000
0.47 ______ 16.77 ______
Luxembourg US$300,000
Denmark e100,000
6,430,669 ____________
Jersey e200,000
0.43
Chile US$120,000
% 0.38
Japan
Adecco Financial Service (Bermuda) 6% 15/3/2006 160,591 ____________
Canada C$392,000
Description
International US$180,000
Bermuda e130,000
Value (US$)
ThyssenKrupp EMTN 4.375% 18/3/2015 145,179 Volkswagen International Finance Services EMTN 4.75% 19/7/2011 ____________ 181,409
0.28 ______
Austria e848,000
Holding e120,000 e140,000
BONDS
Dutch Government 3.75% 15/7/2009 1,076,147 ICI Investments (Netherlands) EMTN 7.625% 21/8/2007 151,237 Scotland International Finance ’144A’ 4.25% 23/5/2013 373,466 ____________
2.81 0.39
1,600,850 ____________
0.97 ______ 4.17 ______
120,078
0.31
183,536
0.48
168,489
0.44
139,931
0.37
196,689 75,602
0.51 0.20
500,185
1.30
United Kingdom e100,000 e140,000 e140,000 US$130,000 £110,000 £40,000 US$500,000
AIB UK 1 4.781% 17/12/2014 (Perpetual) Anglian Water Services Financing EMTN 4.625% 7/10/2013 BAT International Finance EMTN 3.625% 29/6/2012 British Sky Broadcasting 6.875% 23/2/2009 Cadbury Schweppes Finance EMTN 4.875% 20/12/2010 Emap 6.25% 9/12/2013 Granite Master Issuer ’2005-1 A3’ FRN 20/12/2024
World Bond Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding US$258,318 US$170,000 US$200,000 e90,000 £80,000 e120,000 e125,000 £1,044,000
Description
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Value (US$)
%
0.40 0.42 5.18 ______
4,595,735 ____________
11.98 ______
US$120,000 US$150,000 US$210,000 US$300,000 US$350,000 US$180,000 US$110,000 US$60,000 US$150,000 US$150,000 US$430,000
ABN Amro Bank (Chicago) 7.3% 1/12/2026 Amgen 4% 18/11/2009 Boston Scientific 4.25% 12/1/2011 Capital One Bank 4.875% 15/5/2008 Citigroup 6% 21/2/2012 Citigroup FRN 4/6/2007 Computer Associates International ’144A’ 5.625% 1/12/2014 COX Communications 5.45% 15/12/2014 DaimlerChrysler NA Holding 7.3% 15/1/2012 EOP Operating 7.75% 15/11/2007 General Electric 5% 1/2/2013 HSBC Finance 6.4% 17/6/2008
US$150,000 0.48 0.52 0.30 0.40
372,166 118,975 150,000 212,714 327,645 350,252
0.97 0.31 0.39 0.55 0.85 0.91
182,173
0.48
112,209
0.29
67,050 161,105 154,693 455,336
0.18 0.42 0.40 1.19
Sales US$449,421 US$321,300 C$907,000 US$366,749 US$1,080,975 US$225,134 e4,321,000 £127,000 US$1,055,639 ¥67,709,000 US$6,231,081 US$485,195 US$45,985 US$64,755 US$48,692 US$100,497 US$57,279 US$139,584
Value date 11/7/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005 25/8/2005
Net unrealised loss
Value (US$)
US$94,000 US$200,000 US$300,000 US$132,000 US$110,000 US$485,000 US$1,145,000 US$105,000 US$45,000 US$105,000 US$640,000 US$3,000,000 US$5,000,000 US$2,500,000 US$250,000 US$400,000 US$170,000 e150,000
18,565,063 ____________ 37,475,767
Total Portfolio Other Net Assets Total Net Assets (US$)
876,868 ____________ 38,352,635 ____________
% 1.31 0.47 0.27 0.55 0.82 0.37 0.28 1.26 2.95 0.32 0.13 0.35 2.40 7.82 13.00 6.49 0.66 1.04 0.48 0.50 ______ 48.41 ______ 97.71 2.29 ______ 100.00 ______
Open Futures Contracts as at 30 June 2005
Open Forward Foreign Exchange Transactions as at 30 June 2005
Purchases KRW449,645,451 A$420,000 US$737,106 C$452,000 CHF1,375,000 DKr1,383,000 US$5,234,444 US$230,572 £583,000 US$616,040 ¥680,534,000 SKr3,783,000 HUF9,451,000 MXN700,000 NOK319,000 PLN338,000 SGD96,000 ZAR932,000
Description
Nelnet Student Loan Trust FRN 26/8/2030 500,368 New Cingular Wireless Services 8.125% 1/5/2012 179,442 Pacific Gas & Electric 6.05% 1/3/2034 103,259 Pfizer 5.625% 15/4/2009 210,350 Raytheon 6.75% 15/8/2007 315,185 Socgen Real Estate ’144A’ 7.64% 30/9/2007 (Perpetual) (Pref) 141,260 US Treasury 3.125% 31/1/2007 109,166 US Treasury 3.375% 15/2/2008 481,741 US Treasury 3.5% 15/2/2010 1,131,984 US Treasury 5.375% 15/2/2031 123,318 US Treasury 5.75% 15/8/2010 49,198 US Treasury 6.125% 15/8/2029 133,407 US Treasury 8% 15/11/2021 919,750 US Treasury Bill 0% 7/7/2005 2,998,407 US Treasury Bill 0% 4/8/2005 4,985,757 US Treasury Bill 0% 18/8/2005 2,490,166 Washington Mutual 4.375% 15/1/2008 251,085 Wells Fargo & Co MTN FRN 10/3/2008 400,068 Yum! Brands 7.65% 15/5/2008 184,700 Zurich Finance USA EMTN 4.5% 17/9/2014 192,134 ____________
0.67
USA US$360,000
Holding US$500,000
Granite Mortgages ’2002-1 1A2’ FRN 20/7/2019 258,535 HBOS Capital Funding 6.071% 30/6/2014 (Perpetual) 183,235 Holmes Financing ’4 3A2’ FRN 15/7/2040 200,286 Kingfisher EMTN 4.5% 21/10/2010 114,385 MBNA Europe Funding EMTN 6% 12/11/2010 151,723 MBNA Europe Funding EMTN 6.5% 27/3/2007 154,598 mmO2 EMTN 6.375% 25/1/2007 159,706 UK Treasury 5% 7/9/2014 1,988,757 ____________
Unrealised profit/(loss) US$ (10,918) (3,339) 659 256 (6,982) (1,034) 15,965 3,200 (11,873) 1,540 (54,819) (151) 75 (148) (3) 82 (206) (404) ________
Number of Contracts 20 3 (3) 4 (28)
Issuer Eurex Euro Bund Eurex Schatz LIFFE Long Gilt Japanese Government Bond (TSE) US Treasury 10 Year Note
Total commitment
Expiration Value date US$ September 2005 2,974,804 September 2005 386,691 September 2005 (613,341) September 2005 5,103,009 September 2005 __________ (3,176,687) 4,674,476 __________
Note: The net unrealised profit of US$14,793 attributed to these transactions is included above in Other et Assets (see Note 2c).
(68,100) ________
Note: The net unrealised loss attributed to these transactions is included above in Other Net Assets (see Note 2c). The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
157
World Bond Fund
continued
Swaps as at 30 June 2005 Nominal Value US$ 300,000
300,000
200,000
200,000
158
Description
Unrealised profit/(loss) US$
Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on J Sainsbury plc 5.625% 11/7/2008) (20/6/2010) Credit Default Swap (Lehman) (Fund receives fixed 1.20% and pays default protection on W.M.Morrison plc 5.625% 11/7/2008) (20/6/2010) Credit Default Swap (UBS) (Fund pays fixed 0.7% and receives default protection on GUS plc 6.375% 16/7/2009) (20/9/2010) Credit Default Swap (Lehman) (Fund pays fixed 1.05% and receives default protection on Casino Guichard Perrachon 6% 27/2/2012) (20/6/2010)
Merrill Lynch International Investment Funds
Nominal Value US$ 750,000
5,672 5,600,000 (3,555)
(1,882)
(320)
Description
Unrealised profit/(loss) US$
Total Return Swap (UBS) (Fund pays floating US$ LIBOR 1-month - 0.10% and receives ERISA Eligible portion of Lehman CMBS Index) (1/10/2005) (8,625) Total Return Swap (UBS) 1/10/2005 (Fund pays floating US$ LIBOR 1-month - 0.10% and receives Lehman Brothers MBS Portion of Global Aggregate Index) 24,394 __________ 15,684 __________
World Energy Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Austria 41,000
OMV
17,882,821 ____________
0.99 ______
15,531,268 69,718,549 11,718,923 64,147,944 6,750,730 2,225,647 11,481,083 56,921,299 64,280,263 39,451,699 ____________
0.86 3.86 0.65 3.55 0.37 0.12 0.64 3.15 3.56 2.19 ______
342,227,405 ____________
18.95 ______
11,191,518
0.62
6,941,613 ____________ 18,133,131 ____________
0.38 ______ 1.00 ______
23,779,385 ____________
1.32 ______
47,209,163 ____________
2.61 ______
25,823,480 ____________
1.43 ______
32,052,441 ____________
1.78 ______
22,432,400 ____________
1.24 ______
Canada 350,000 1,900,000 162,340 1,600,000 781,500 1,400,000 7,600,000 1,214,367 1,696,300 19,000,000
Cameco Canadian Natural Resources Canadian Oil Sands Trust (Units) EnCana Fairborne Energy Trust (Units) Nelson Resources Nelson Resources (UK Listing) Niko Resources Talisman Energy UTS Energy
China 11,599,500 71,000,000
China Shenhua Energy ‘H’ Titan Petrochemicals Group (Hong Kong Listing)
Finland 1,500,000
Fortum
Holding
Description
Value (US$)
%
296,800 600,000 600,000 777,000 1,210,000 700,000 914,000 622,000 683,600 712,300 1,285,800 686,700 598,000 680,000 450,000 428,000 629,000 1,010,000 256,200 200,000 615,000 994,300 1,113,000 359,000 738,000 1,167,500
BJ Services Burlington Resources ConocoPhillips Denbury Resources EOG Resources Exxon Mobil Halliburton Marathon Oil Nabors Industries National Oilwell Varco Newfield Exploration Occidental Petroleum Peabody Energy Plains Exploration & Production Premcor Quicksilver Resources Range Resources Rowan Smith International Southwestern Energy Tesoro Transocean Ultra Petroleum Valero Energy Western Gas Resources XTO Energy
15,771,952 33,360,000 34,836,000 30,722,580 68,594,900 40,775,000 43,999,960 33,737,280 41,508,192 33,784,389 51,676,302 53,706,807 31,789,680 24,310,000 33,246,000 27,777,200 17,108,800 30,370,700 16,417,296 9,370,000 28,677,450 54,119,749 33,390,000 28,400,490 26,036,640 39,858,450 ____________
0.87 1.85 1.93 1.70 3.80 2.26 2.43 1.87 2.30 1.87 2.86 2.97 1.76 1.34 1.84 1.54 0.95 1.68 0.91 0.52 1.59 3.00 1.85 1.57 1.44 2.21 ______
948,099,957 _____________
52.49 ______
1,695,069,115 _____________
93.85 ______
France 200,000
Total
Hungary 308,500
Mol Magyar Olaj- es Gazipari
Unquoted Securities
Italy 1,250,000
Eni*
COMMON STOCKS (SHARES) & WARRANTS
Poland 1,490,000
Polski Koncern Naftowy Orlen
Thailand 3,274,000
Banpu
11,808,908 ____________
0.66 ______
42,566,294 39,436,525 40,129,828 17,190,573 36,810,481 16,743,769 12,742,554 ____________
2.36 2.18 2.22 0.95 2.04 0.93 0.70 ______
205,620,024 ____________
11.38 ______
10,741,640 32,816,000 21,196,500
0.59 1.82 1.17
United Kingdom 5,152,300 3,750,000 1,661,500 5,557,787 3,775,000 4,600,000 3,857,000
BG Group BP Cairn Energy John Wood Group Shell Transport & Trading Sibir Energy Tullow Oil
USA 1,180,400 400,000 325,000 (*)
American Superconductor Anadarko Petroleum Apache
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Canada 1,000,000 964,300 100,000,000 482,150 3,940,465 1,970,233
729,986 1,094,996 0 0 3,995,118 0 ____________
0.04 0.06 0.00 0.00 0.22 0.00 ______
5,820,100 ____________
0.32 ______
1,500,000 ____________ 7,320,100 ____________
0.08 ______ 0.40 ______
Total Portfolio
1,702,389,215
94.25
Other Net Assets
103,882,045 _____________ 1,806,271,260 _____________
5.75 ______ 100.00 ______
400,000
UR Energy UR Energy UR Energy (Wts 1/3/2007) UR Energy (Wts 1/12/2006) Win Energy Win Energy (Wts 3/6/2006)
USA Clipper Windpower
Total Unquoted Securities
Total Net Assets (US$)
Securities lent, see note 12 for further details.
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
159
World Energy Fund
continued
Sector Breakdown as at 30 June 2005
Integrated oil Exploration & production Refining and marketing Oil services Alternative energy Coal Distribution Other net assets
% of net assets 42.9 21.3 14.7 7.2 4.0 2.4 1.7 5.8 ____________ 100.0 ____________
160
Merrill Lynch International Investment Funds
World Financials Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) Australia 8,800
National Australia Bank
205,815 ____________
0.06 ______
1,043,727 383,080 ____________ 1,426,807 ____________
0.34 0.12 ______ 0.46 ______
2,008,100 1,191,900 161,000 15,054,539 16,973,600 ____________
0.64 0.38 0.05 4.81 5.42 ______
35,389,139 ____________
11.30 ______
8,490 ____________
0.00 ______
Belgium 37,675 4,900
Fortis KBC Groep
Bermuda 21,500 34,800 2,500 604,600 346,400
Everest Re Group Montpelier Re Holdings PartnerRe PXRE Group RenaissanceRe Holdings
Description
98,000 14,800 27,900 243,000 71,300 58,000 46,000 117,000 79,000 24,400 228,000
ACE Koeki Aeon Credit Service Aiful Bank of Yokohama Credit Saison Daiichi Commodities Fuso Lexel Gakken Credit Koyo Futures Nomura Holdings Toyo Securities
Toronto-Dominion Bank
ACE
11,393,146 ____________
3.63 ______
China 1,480,500 1,092,900
Beijing Capital Land ‘H’ Shanghai Forte Land ‘H’
312,349 284,704 ____________ 597,053 ____________
0.10 0.09 ______ 0.19 ______
2,442,310 ____________
0.78 ______
114,684 ____________
0.04 ______
6,042,835 ____________
1.93 ______
597,468 1,115,595 ____________
0.19 0.36 ______
1,713,063 ____________
0.55 ______
820,895 ____________
0.26 ______
844,507 6,764,828 ____________ 7,609,335 ____________
0.27 2.16 ______ 2.43 ______
9,797,502 506,410 ____________ 10,303,912 ____________
3.13 0.16 ______ 3.29 ______
2,026,185 3,351,637 ____________
0.65 1.07 ______
5,377,822 ____________
1.72 ______
Denmark 81,500
Danske Bank (Bearer Shares)
CNP Assurances
Germany 160,401
Hannover Rueckversicherung*
China Resources Land Hopson Development Holdings
OTP Bank
India 57,800 691,700
HDFC Bank ICICI Bank
Indonesia 26,576,300 3,296,800
Bank Central Asia Bank Mandiri Persero
ABN AMRO Holding ING Groep
Sberbank RF
Daegu Bank Dongbu Insurance Hana Bank Industrial Bank of Korea Korean Reinsurance Oriental Fire & Marine Insurance Pusan Bank
Banco Popular Espanol Corporacion Mapfre
Zurich Financial Services
Allied Irish Banks Anglo Irish Bank
748,364 415,392 ____________ 1,163,756 ____________
0.24 0.13 ______ 0.37 ______
2,178,000 ____________
0.69 ______
9,489,055 3,440,412 8,160,904 6,626,480 12,403,723 12,560,984 9,092,358 ____________
3.03 1.10 2.60 2.12 3.96 4.01 2.90 ______
61,773,916 ____________
19.72 ______
553,345 57,035 ____________ 610,380 ____________
0.17 0.02 ______ 0.19 ______
17,092 ____________
0.01 ______
4,703,702 ____________
1.50 ______
15,994 704,324 351,519 301,674 560,301 21,218,540 3,942,182 145,159 530,420 8,999,236 2,788,596 ____________
0.01 0.22 0.11 0.10 0.18 6.77 1.26 0.05 0.17 2.87 0.89 ______
39,557,945 ____________
12.63 ______
12,310,318 10,424,804
3.93 3.33
Turkey 818,444
Akbank TAS
United Kingdom 1,600 126,100 26,600 56,600 84,000 2,082,900 463,400 77,100 20,500 632,100 216,000
Barclays Cattles Close Brothers Group ICAP Jardine Lloyd Thompson Group Kensington Group Lloyds TSB Group London Scottish Bank Man Group Northern Rock Provident Financial
Ireland 94,000 272,300
3.14 ______
Switzerland 100
Hungary 24,200
9,844,314 ____________
Spain 45,900 3,800
Hong Kong 3,686,000 2,282,100
0.17 0.30 0.66 0.45 0.76 0.10 0.12 0.11 0.10 0.09 0.28 ______
South Korea 1,098,200 329,700 302,100 696,900 1,956,730 560,000 1,013,400
France 1,800
543,658 928,010 2,084,689 1,407,330 2,377,100 310,752 369,065 335,102 322,624 292,546 873,438 ____________
Russian Federation 3,300
Cayman Islands 252,900
%
Netherlands 30,400 14,700
Canada 188
Value (US$)
Japan
USA 274,600 150,800
Accredited Home Lenders Holding Affiliated Managers Group
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
161
World Financials Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
3,000 501,200 492,700 500 97,870 6,300 3,100 9,000 269,700 1,089,300 800 5,200
AMB Property American Home Mortgage Investment Bristol West Holdings Brown & Brown Capital One Financial Citigroup Equity Office Properties Trust Freddie Mac Fremont General Friedman Billings Ramsey Group ‘A’* Gallagher (Arthur J.) & Co Hilb Rogal & Hobbs
(*)
Value (US$)
%
Holding
129,390 17,617,181 9,011,483 22,555 7,721,944 295,155 102,920 588,420 6,564,498 15,446,275 21,520 180,700
0.04 5.62 2.88 0.01 2.46 0.09 0.03 0.19 2.10 4.93 0.01 0.06
4,200 516,700 4,200 800 2,100 392
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Commercial services – finance Commercial banks (non-US) Reinsurance Property/casualty insurance Real estate management/services Financial investment banking Investment management Money centre banks Multi-line insurance Commercial banks (US) Insurance brokers Other net assets
% of net assets 30.6 22.8 16.5 11.6 6.6 5.1 4.1 1.3 0.4 0.1 0.1 0.8 ____________ 100.0 ____________
162
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
Merrill Lynch International Investment Funds
Description
Value (US$)
%
Hudson United Bancorp New Century Financial Pacific Capital Bancorp Progressive Protective Life TD Banknorth
153,384 26,615,217 154,350 78,696 89,039 11,658 ____________
0.05 8.49 0.05 0.02 0.03 0.00 ______
107,539,507 ____________ 310,833,918
34.32 ______ 99.21
2,481,368 ____________ 313,315,286 ____________
0.79 ______ 100.00 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
World Gold Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON STOCKS (SHARES) & WARRANTS 79,500,000
Australia 9,691,139 35,000,000 19,126,866 8,900,000 4,000,000 13,200,000 63,000,000 33,739,946 750,000
Austindo Resources Ballarat Goldfields Bendigo Mining Kimberley Diamond Leviathan Resources Newcrest Mining Oxiana Perseverance Sino Gold
390,534 6,786,040 15,124,651 7,443,735 2,433,090 174,434,307 42,632,299 7,824,425 1,054,973 ____________
0.02 0.33 0.74 0.36 0.12 8.49 2.07 0.38 0.05 ______
258,124,054 ____________
12.56 ______
67,397,194 186,034,999 9,363,290 785,749 7,561,270 593,722 27,715,143 307,091 79,812 67,661,611 13,261,416 11,645,064 77,977,127 3,792,603 10,801,805 2,410,706 5,791,163 94,797 13,632,493 29,911,185 12,320,362 112,320,000 901,127 713,021 15,267,613 ____________
3.28 9.05 0.46 0.04 0.37 0.03 1.35 0.02 0.00 3.29 0.65 0.57 3.79 0.18 0.53 0.12 0.28 0.00 0.66 1.46 0.60 5.46 0.04 0.03 0.74 ______
678,340,363 ____________
33.00 ______
Canada 2,200,000 7,250,000 3,900,000 625,000 3,452,700 915,000 12,750,000 728,100 820,000 4,300,000 5,000,000 652,600 4,900,000 4,922,000 9,938,467 309,600 2,196,900 137,500 2,250,000 1,650,000 799,001 7,200,000 222,200 586,056 1,759,200
Aber Diamond Barrick Gold (US Listing) Bema Gold Bema Gold (Wts 22/10/2007) Bolivar Gold Bolivar Gold (Wts 22/12/2009) Cambior Cambior (Wts 12/8/2008) Cambior (Wts 14/10/2006) Centerra Gold Eldorado Gold First Quantum Minerals Goldcorp Guinor Gold High River Gold Mines Ivanhoe Mines Jaguar Mining Jaguar Mining (Wts 31/12/2007) Kinross Gold Meridian Gold Placer Dome Placer Dome (US Listing) Shore Gold Silver Bear (Restricted 11/6/2005) Southwestern Resources
China 160,000,000
Zijin Mining Group ‘H’
35,196,912 ____________
1.71 ______
Mali 7,000,000
Iamgold
47,692,432 ____________
2.32 ______
50,212,042 ____________
2.44 ______
Mexico 10,598,500 (*)
Industrias Penoles
Description
Value (US$)
%
73,745,438 _____________
3.59 ______
116,250,000 _____________
5.65 ______
9,577,773 39,869,017 57,856,000 79,561,208 30,568,260 78,434,211 13,694,855 89,722,431 6,749,812 41,296,000 22,000,000 9,193,548 _____________
0.47 1.94 2.81 3.87 1.49 3.82 0.67 4.35 0.33 2.01 1.07 0.45 ______
478,523,115 _____________
23.28 ______
10,668,818 45,673,427 _____________ 56,342,245 _____________
0.52 2.22 ______ 2.74 ______
Freeport-McMoRan Copper & Gold ‘B’ 95,150,001 Newmont Mining 59,505,000 Newmont Mining (Australian Listing) _____________ 7,062,044 161,717,045 _____________
4.63 2.90 0.34 ______
Papua New Guinea Lihir Gold (Australian Listing)
Peru 5,000,000
Cia de Minas Buenaventura ADR
South Africa 1,905,548 1,100,000 1,600,000 6,851,104 2,648,896 8,933,083 1,566,917 1,000,000 2,950,000 2,900,000 1,600,000 2,850,000
African Rainbow Minerals AngloGold Ashanti AngloGold Ashanti ADR* Gold Fields Gold Fields ADR Harmony Gold Mining Harmony Gold Mining ADR Impala Platinum Holdings Mvelaphanda Resources Randgold Resources Randgold Resources ADR Western Areas
United Kingdom 3,500,000 3,900,000
Highland Gold Mining Peter Hambro Mining
USA 2,500,000 1,500,000 1,800,000
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
7.87 ______
1,956,143,646 _____________
95.16 ______
Total Unquoted Securities
0 0 _____________ 0 _____________
0.00 0.00 ______ 0.00 ______
Total Portfolio
1,956,143,646
95.16
Other Net Assets
99,458,718 _____________ 2,055,602,364 _____________
4.84 ______ 100.00 ______
Unquoted Securities WARRANTS Canada 210,000 2,250,000
Jaguar Mining (Wts 20/5/2006) Thistle Mining (Wts 9/1/2009)
Total Net Assets (US$)
Securities lent, see note 12 for further details.
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
163
World Gold Fund
continued
Sector Breakdown as at 30 June 2005
Gold Platinum Diamonds Diversified Other net assets
% of net assets 83.1 4.7 4.4 3.0 4.8 ____________ 100.0 ____________
164
Merrill Lynch International Investment Funds
World Healthscience Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON / PREFERRED STOCKS (SHARES) & RIGHTS Canada 200,000
Cardiome Pharma
1,100,000 ____________
1.20 ______
698,826 ____________
0.76 ______
1,231,465 ____________
1.35 ______
2,056,727 233,709 7,291 1,339,223 263,044 ____________
2.25 0.25 0.01 1.46 0.29 ______
3,899,994 ____________
4.26 ______
938,700 ____________
1.03 ______
1,782,400 ____________
1.95 ______
713,924 5,059,154 ____________ 5,773,078 ____________
0.78 5.53 ______ 6.31 ______
3,920,800 2,505,600 198,500 2,437,200 5,338,800 3,240,000 4,075,800
4.29 2.74 0.22 2.66 5.84 3.54 4.46
Denmark 40,000
Genmab
France 15,000
Sanofi-Aventis
India 188,435 40,000 4,000 100,000 30,000
Cadila Healthcare Nicholas Piramal India Nicholas Piramal India (Rights) Sun Pharmaceutical Industries Wockhardt
Israel 30,000
Teva Pharmaceutical Industries ADR
Netherlands Antilles 40,000
Orthofix International
Switzerland 15,000 40,000
Novartis Roche Holding (Pref)
USA 80,000 30,000 5,000 40,000 120,000 80,000 60,000 (*)
Abbott Laboratories Aetna Amerigroup Amgen Caremark Rx Celgene Cerner*
Holding 40,000 10,000 30,800 40,000 16,200 200,000 10,000 40,000 15,000 1,100 40,000 100,000 40,000 40,000 40,000 5,000 20,000 10,000 20,000 30,000 10,000 60,000 60,000 120,000 30,000 5,000 60,000 200,000 40,000 2,900 60,000
Value (US$)
%
Charles River Laboratories International 1,950,800 Covance 452,400 DexCom 379,456 Emageon 590,000 ev3 226,800 First Horizon Pharmaceutical 3,830,000 Genentech 804,000 Genzyme 2,425,200 HCA 863,400 Health Net 42,581 HemoSense 220,400 Humana 3,980,000 Idenix Pharmaceuticals 894,400 Intuitive Surgical 1,884,000 IVAX 859,600 Johnson & Johnson 327,850 Kos Pharmaceutical 1,315,580 Medarex 84,400 Medtronic 1,038,800 MGI Pharma 654,000 Nabi Biopharmaceuticals 149,600 Pacificare Health Systems 4,330,199 Sepracor 3,620,400 SonoSite 3,733,200 St Jude Medical 1,326,000 Stryker 238,800 UnitedHealth Group 3,203,400 WebMD 2,044,000 WellCare Health Plans 1,426,000 WellChoice 203,986 WellPoint 4,254,000 ____________ 69,069,952 ____________
Description
2.13 0.49 0.41 0.65 0.25 4.19 0.88 2.65 0.94 0.05 0.24 4.35 0.98 2.06 0.94 0.36 1.44 0.09 1.14 0.72 0.16 4.73 3.96 4.08 1.45 0.26 3.50 2.23 1.56 0.22 4.65 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
84,494,415
75.51 ______ 92.37
6,976,356 ____________ 91,470,771 ____________
7.63 ______ 100.00 ______
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Pharmaceuticals Healthcare services Healthcare products Biotechnology Medical technology Other net liabilities
% of net assets 34.2 23.3 16.9 12.9 5.1 7.6 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
165
World Mining Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
Holding
COMMON / PREFERRED STOCKS (SHARES) & WARRANTS Alumina Bluestone Tin Iluka Resources Kimberley Diamond Oxiana Perilya Straits Resources Zinifex
88,937,044 1,018,856 37,299,716 5,018,248 8,458,790 2,326,642 1,803,148 19,647,202 ____________
4.46 0.05 1.87 0.25 0.42 0.12 0.09 0.99 ______
164,509,646 ____________
8.25 ______
Belgium 100,000 100,000
Cumerio Umicore
1,722,725 8,022,905 ____________
0.09 0.40 ______
9,745,630 ____________
0.49 ______
2,227,004 ____________
0.11 ______
Norddeutsche Affinerie
Griffin Mining
Caemi Mineracao e Metalurgica (Pref) Cia Vale de Rio Doce ADR
23,450,764 164,970,000 ____________
1.18 8.27 ______
188,420,764 ____________
9.45 ______
33,698,597 59,455,500 7,331,900 5,556,006 713,764 84,834,131 27,658,366 38,750,000 2,410,706 2,171,113 14,557,547 7,800,000 2,330,672 4,258,253 88,600,811 992,149 ____________
1.69 2.98 0.37 0.28 0.04 4.25 1.39 1.94 0.12 0.11 0.73 0.39 0.12 0.21 4.44 0.05 ______
381,119,515 ____________
19.11 ______
15,149,750 10,998,070 17,109,610 6,599,421 ____________
0.76 0.55 0.86 0.33 ______
49,856,851 ____________
2.50 ______
10,343,580 ____________
0.52 ______
Canada 1,100,000 1,950,000 5,050,000 1,000,000 1,100,000 4,800,000 1,550,000 1,000,000 309,600 1,683,500 2,800,000 500,000 537,100 3,000,000 2,591,600 330,600
Aber Diamond Alcan (US Listing) Amerigo Resources AUR Resources Constellation Copper Falconbridge First Quantum Minerals Inco Ivanhoe Mines Ivernia LionOre Mining International Placer Dome (US Listing) Quadra Mining Spur Ventures Teck Cominco ‘B’* Western Canadian Coal
China 275,000 11,399,000 35,000,000 30,000,000
Aluminum Corporation of China ADR China Shenhua Energy ‘H’ Jiangxi Copper ‘H’ Zijin Mining Group ‘H’
France 100,000
166
Eramet
Merrill Lynch International Investment Funds
3,146,474 ____________
0.16 ______
Freeport-McMoran Copper & Gold ‘B’
68,508,000 ____________
3.43 ______
27,495,904 ____________
1.38 ______
7,420,925 ____________
0.37 ______
52,312,500 2,120,012 2,433,788 552,106 46,379,375 ____________
2.61 0.11 0.12 0.03 2.33 ______
103,797,781 ____________
5.20 ______
9,120,000 ____________
0.46 ______
9,767,665 36,346,287 6,143,098 35,767,521 8,120,767 21,962,745 9,954,266 76,264,066 3,250,773 2,198,779 2,875,540 1,507,061 ____________
0.49 1.82 0.31 1.79 0.41 1.10 0.50 3.83 0.16 0.11 0.14 0.08 ______
214,158,568 ____________
10.74 ______
4,233,711 ____________
0.21 ______
117,103,992 3,463,198 21,947,283 2,716,514 166,902,099 242,066 147,089,833 42,845,253 116,476,600 ____________
5.87 0.17 1.10 0.14 8.37 0.01 7.38 2.15 5.84 ______
618,786,838 ____________
31.03 ______
Mexico 16,500,000
Grupo Mexico ‘B’
Papua New Guinea 8,000,000
Lihir Gold (Australian Listing)
Peru 2,250,000 1,200,000 605,420 579,658 1,060,100
Cia de Minas Buenaventura ADR Minsur Sociedad Minera Cerro Verde Sociedad Minera la Cima ‘I’ Southern Peru Copper*
Russian Federation 150,000
Brazil 25,000,000 6,500,000
%
Indonesia 1,800,000
Bermuda 3,450,000
Value (US$)
Germany 150,000
Australia 21,000,000 2,000,000 6,514,819 6,000,000 12,500,000 4,500,000 1,275,000 8,500,000
Description
JSC MMC Norilsk Nickel ADR
South Africa 1,943,328 800,000 303,287 3,079,981 703,706 2,501,396 1,138,932 850,000 371,000 3,497,580 547,585 9,752
African Rainbow Minerals Anglo Platinum Anglo American Platinum (Pref) Gold Fields Gold Fields ADR Harmony Gold Mining Harmony Gold Mining ADR* Impala Platinum Holdings Kumba Resources Metorex Palabora Mining Palabora Mining (Wts 18/9/2006)
Sweden 1,000,000
Boliden
United Kingdom 4,966,456 8,218,832 1,000,000 500,000 13,000,000 1,800,000 4,800,000 4,725,000 6,000,000
Anglo American Aricom Antofagasta Aquarius Platinum BHP Billiton Marakand Minerals (Wts 17/5/2006) Rio Tinto Vedanta Resources Xstrata
World Mining Fund
continued
Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Unquoted Securities %
Holding
Value (US$)
%
0 285,911 0 _____________
0.00 0.01 0.00 ______
285,911 _____________
0.01 ______
1,278,000 _____________
0.07 ______
Total Unquoted Securities
0 _____________ 1,563,911 _____________
0.00 ______ 0.08 ______
Total Portfolio
1,926,084,102
96.58
Other Net Assets
68,185,501 _____________ 1,994,269,603 _____________
3.42 ______ 100.00 ______
USA 2,200,000 100,000
Alcoa Newmont Mining
Total Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market
57,662,000 3,967,000 _____________ 61,629,000 _____________
2.89 0.20 ______ 3.09 ______
1,924,520,191 _____________
96.50 ______
5,423,497 1,410,000 165,300
Constellation Copper (Wts 5/2/2006) Spur Ventures (Wts 22/6/2006) Western Canadian Coal
Russian Federation 213
EM Resources
USA
Unquoted Securities
1,000,000
COMMON STOCKS (SHARES) & WARRANTS Brazil 6,750
Description Canada
CVRD – Cia Vale do Rio Doce (Bloked) _____________ 0
Guinea Aluminium Products (Wts 3/2/2006)
0.00 ______ Total Net Assets (US$)
(*)
Securities lent, see note 12 for further details.
Sector Breakdown as at 30 June 2005
Copper Gold Industrial minerals Diversified minerals Aluminium Platinum Zinc Diamond Nickel Iron ore Titanium Other net assets
% of net assets 23.6 17.9 14.3 9.0 7.3 6.1 5.9 4.7 2.9 2.8 2.1 3.4 ____________ 100.0 ____________
The notes on pages 170 to 175 form an integral part of these financial statements.
Unaudited Interim Report and Accounts
167
World Technology Fund Portfolio of Investments 30 June 2005 Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding
Description
Value (US$)
Transferable Securities Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market %
COMMON STOCKS (SHARES) Canada 130,400 68,600
ATI Technologies Celestica (US Listing)
1,555,672 921,298 ____________
1.54 0.91 ______
2,476,970 ____________
2.45 ______
705,936 934,402 ____________ 1,640,338 ____________
0.70 0.93 ______ 1.63 ______
684,045 ____________
0.68 ______
1,011,911 ____________
1.00 ______
644,080 ____________
0.64 ______
521,863 926,124 ____________ 1,447,987 ____________
0.52 0.92 ______ 1.44 ______
464,373 ____________
0.46 ______
1,637,999 ____________
1.62 ______
595,743 551,355 ____________ 1,147,098 ____________
0.59 0.55 ______ 1.14 ______
525,096 769,756 291,456 751,640 1,134,444 779,312 957,570 500,122 1,818,374 4,141,900 845,765 1,630,160 402,844 747,120 600,158 3,799,880 545,965
0.52 0.76 0.29 0.74 1.12 0.77 0.95 0.50 1.80 4.10 0.84 1.62 0.40 0.74 0.59 3.77 0.54
Channel Islands 26,400 21,700
Amdocs Garmin
Finland 40,500
Nokia ADR
Hong Kong 3,420,000
Lenovo Group
India 8,300
Infosys Technologies ADR
Israel 25,150 42,600
Aladdin Knowledge Systems Orbotech
Singapore 35,100
Flextronics International
South Korea 3,400
Samsung Electronics
Taiwan 34,900 133,500
AU Optronics ADR United Microelectronics ADR
USA 35,100 170,300 110,400 92,000 26,800 91,900 17,700 13,900 31,400 213,500 29,500 41,000 12,200 113,200 112,600 114,800 9,500
168
Altiris Amkor Technology Applied Micro Circuits Atheros Communications Automatic Data Processing Avaya Avid Technology Broadcom ‘A’ CDW Cisco Systems Cogent Dell Digital River Ditech Communications Dot Hill Systems eBay Electronic Arts
Merrill Lynch International Investment Funds
Holding 186,500 9,900 154,100 44,400 321,400 61,700 47,300 33,100 41,200 102,100 54,500 41,800 129,700 79,700 12,100 9,200 76,000 42,600 115,800 174,900 99,100 105,400 37,400 33,400 27,900 70,800 225,500 21,000 133,900 55,400 29,400 56,800 50,100 184,400 202,000 19,000 224,200 204,800 200,000 30,700 23,800 51,100 109,800 36,000 33,700 56,800 31,500 33,900
Description
Value (US$)
%
EMC/Massachusetts Euronet Worldwide Extreme Networks Formfactor Gateway Greenfield Online IAC/InterActiveCorp IBM Infospace Intel Intergrated Circuit Systems Intersil ‘A’ Interwoven Juniper Networks Kanbay International Lexmark International ‘A’ Maxim Intergrated Products Merix Micron Technology Microsoft Monster Worldwide Motorola NAVTEQ NetIQ Network Appliance Novatel Wireless Oracle Palm Paychex Photon Dynamics Plantronics Qualcomm Rackable Systems RealNetworks RF Micro Devices SanDisk Sirius Satellite Radio SupportSoft Symantec Synopsys Tech Data Texas Instruments TIBCO Software VeriSign Verity Xilinx XM Satellite Radio Holdings ‘A’ Yahoo!
2,564,375 290,961 633,351 1,181,040 1,063,834 716,337 1,143,241 2,482,169 1,359,600 2,684,209 1,145,590 800,052 1,001,284 2,040,320 273,460 601,312 2,916,120 267,954 1,204,320 4,386,492 2,862,999 1,961,494 1,408,484 381,094 805,473 880,044 3,028,465 672,000 4,389,242 1,120,742 1,082,214 1,895,416 605,208 916,468 1,090,800 457,520 1,481,962 1,069,056 4,424,000 522,514 873,936 1,443,064 719,179 1,059,840 302,626 1,457,488 1,069,425 1,172,262 ____________
2.54 0.29 0.63 1.17 1.05 0.71 1.13 2.46 1.35 2.66 1.13 0.79 0.99 2.02 0.27 0.60 2.89 0.27 1.19 4.35 2.84 1.94 1.40 0.38 0.80 0.87 3.00 0.67 4.35 1.11 1.07 1.88 0.60 0.91 1.08 0.45 1.47 1.06 4.38 0.52 0.87 1.43 0.71 1.05 0.30 1.44 1.06 1.16 ______
88,150,598 ____________ 99,305,399
87.34 ______ 98.40
1,614,883 ____________ 100,920,282 ____________
1.60 ______ 100.00 ______
Total Portfolio Other Net Assets Total Net Assets (US$)
World Technology Fund
continued
Sector Breakdown as at 30 June 2005
Semiconductors Internet Telecommunications Computers Software Commercial services Electronics Media Distribution & wholesale Advertising Other net assets
% of net assets 18.7 18.3 17.1 14.6 13.2 5.7 3.9 3.5 2.7 0.7 1.6 ____________ 100.0 ____________
Put Options Purchased Par Value Subject to Put US$ 817
Issuer Intel Corp strike price US$25 expiring on 22/10/2005
Total Put Options Purchased
Unrealised profit US$
Value US$
11,183 ____________ 11,183 ____________
65,360 _______ 65,360 _______
Note: Put Options Purchased are included in Other Net Assets (see Note 2c).
The notes on pages 170 to 175 form an integral part of these financial statements.
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Notes to the Financial Statements 1. Organisation Merrill Lynch International Investment Funds “the Company” is an open-ended investment company (société d’investissement à capital variable or SICAV) and is incorporated under the law of 30 March 1988 of the Grand Duchy of Luxembourg. As at 30 June 2005, the Company offered shares in 54 Funds. Each Fund is a separate pool of assets and is represented by separate shares of each Fund which are further divided into: Class ‘A’ – distributing (monthly and daily) – certain Funds only, and non-distributing; Class ‘B’ – distributing (daily) – certain Funds only, and non-distributing – certain Funds only; Class ‘C’ – distributing (monthly and daily) – certain Funds only, and non-distributing – certain Funds only; Class ‘E’ – non-distributing; Class ‘Q’ (grandfathered share class available to investors previously holding shares in other Funds sponsored by entities within the Merrill Lynch Group. Within the Company they are no longer available for subscription) – distributing and non-distributing (excluding Corporate Bond (Euro); European Growth, Japan Value, US Dollar Low Duration Bond and World Bond Funds) – certain Funds only; Class ‘X’ (available to certain subscribers) – certain Funds only. Hedged versions of Class A Shares, Class B Shares, Class C Shares and Class E Shares are available to holders of shares denominated in the additional dealing currency of the following funds only: Global Allocation (from 2 May 2005), US Basic Value, US Flexible Equity and US Focused Funds. During the period covered by the accounts: the Class A Distributor Status Distributing shares were launched – for the following funds only: Asian Dragon, Emerging Europe, European Value, Japan Opportunities, Latin American, Sterling Reserve, United Kingdom, US Basic Value, US Flexible Equity, US Focused Value, World Energy and World Mining Funds (January 2005) and; Class C monthly distributing shares for Global Bond (US Dollar) (28 June 2005) were activated. The classes of shares have similar rights in the Company but carry different charging structures, which are more fully described in the Company’s Prospectus. As at the period end, all Share Classes were activated. 2. Summary of Significant Accounting Policies The financial statements have been prepared in accordance with the format and regulations prescribed by the Luxembourg authorities for Luxembourg investment companies and the following significant accounting policies : (a) Valuation of Investments and Other Assets The Company’s investments and other assets are valued as follows: • the market values of quoted securities forming any particular Fund’s portfolio are determined by the last known prices upon close of the exchange on which those securities or assets are traded or admitted for trading. For quoted securities traded on markets closing after the time of the valuation pricing slots on 30 June 2005, last known prices as of this time or such other time may be used. Where such quoted securities are quoted or dealt in on or by more than one stock exchange or regulated market the Directors may in their discretion select one of such stock exchanges or regulated markets for such purposes; However, on the advice of the Manager, the Board of Directors has identified certain investments held by the Company, for which the quoted market values do not represent the fair market value due to market illiquidity or restrictions in the repatriation of capital. In recognition of this, the Board of Directors has on the advice of the Manager and local brokers, applied a discount to the market prices to reflect their estimated realisable value. The valuation of these investments and the discounts applied are subject to regular review by the Board; • securities lending: securities are delivered to a third party broker as per lending agent Merrill Lynch Investment Managers, LLC instruction, the assets of which continue to be valued as part of the portfolio of the Fund;
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• the valuation of unquoted securities (securities not traded on or admitted to any official stock exchange or any regulated market), or in the case of securities so traded or admitted where the last known price is not considered to reflect their true value, the Directors will value the securities concerned with prudence and in good faith on the basis of their expected disposal or acquisition price; • liquid assets and money market instruments may be valued at nominal values plus any accrued interest or on an amortised cost basis; • cash, bills payable on demand and other debts are valued at their nominal amount, unless it appears unlikely that such nominal amount is obtainable; • assets which include in particular receivables on shares created, securities sold, prepaid covering restructuring expenses together with other assets (swaps, dividend and bond interest declared and bank interest), are valued at nominal value; and • liabilities, which include in particular payables on shares redeemed, securities purchased, together with other liabilities (dividends declared, tax, fees and general expenses) are valued at nominal value. (b) Income from Investments The Company takes credit for income from its investments on the following basis: • on fixed deposits, bonds and mortgage backed securities on a time apportionment basis; • premiums on bonds and mortgage backed securities being amortised to maturity ; • on other stocks on the basis of the dividends declared ; and • securities lending: income is received from securities lending on a monthly basis. (c) Financial Instruments During the period, the Company has entered into a number of forward foreign exchange and futures contracts. Open forward foreign exchange and futures contracts are valued at the cost to close the contracts on the accounting date. Surpluses/deficits arising from these and closed unsettled contracts are taken to unrealised profit/loss and are included under assets or liabilities (as appropriate) in the Statement of Net Assets on pages 4 to 13. The Company can write covered call options and purchase put options. When the Company writes an option, an amount equal to the premium received by the Company is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market to reflect the current value of the option written. When a security is sold through an exercise of an option, the related premium received (or paid) is deducted from (or added to) the basis of the security sold. When an option expires (or the Company enters into a closing transaction), the Company realises 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). The Company has entered into swap agreements to exchange the return generated by one instrument for the return generated by another investment. The swaps are marked to market daily based upon quotations from market makers and the change, if any, is recorded as unrealised appreciation or depreciation in the Statement of Operations and Changes in Net Assets. Realised gains or losses on maturity or termination of the swaps are presented in the Statement of Operations and Changes in Net Assets on pages 24 to 33. Securities repurchase (or reverse repurchase) transactions are treated as lending (or, respectively, borrowing) operations guaranteed by the underlying securities. These are operations by which the assignor assigns to another person (the assignee) ownership of the securities and by which the assignor undertakes irrevocably to repurchase the securities and the assignee undertakes irrevocably to resell them, at an agreed price and date. Securities repurchase agreements are valued at their purchase price expressed in the original currency and recorded in receivable. (d) Foreign Exchange The cost of investments in currencies other than the currency of denomination of the respective Fund has been translated at the rates of exchange ruling at the time of purchase. The market value of investments and other assets in currencies other than the currency of denomination of the respective Fund has been translated at the exchange rate determined by their valuation pricing slots on 30 June 2005.
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Notes to the Financial Statements
continued
(e) Total Consolidated Figures The consolidated figures of the Company are expressed in US$ and include the total of the financial statements of the different Funds translated at the exchange rate determined by their respective valuation pricing slots as at 30 June 2005: 1 US$ = 0.83 Euros = 0.56 Sterling; These figures are presented for information purposes only. (f) Restructuring Expenses Restructuring expenses are being amortised over periods not exceeding five years. The amount of unamortised restructuring expenses as at 30 June 2005 was US$474,299 and forms part of “prepaid restructuring expenses“ in the Statement of Net Assets on pages 4 to 13. Expenses incurred in the restructuring as defined in the letter to shareholders dated August 2004, amounted to US$400,000 are being amortised over a period of up to three years. The amount of unamortised restructuring expenses as at 30 June 2005 was US$299,790 and forms part of “prepaid restructuring expenses“ in the Statement of Net Assets on pages 4 to 13. The expenses incurred in the restructuring of the Company as defined in the letter to shareholders dated April 2005 amounted to US$575,000 and are being amortised over a period of not more than three years. The amount of unamortised restructuring expenses as at 30 June 2005 was US$563,433 and forms part of ”prepaid restructuring expenses” in the Statement of Net Assets on pages 4 to 13. 3. Management and Distribution Fees During the period the daily management of the Company was carried out by Merrill Lynch Investment Managers (Channel Islands) Limited who acted as Investment Manager and Principal Distributor, The Bank of New York Europe Limited, Luxembourg Branch who acted as Fund Accountant and, J.P. Morgan Bank Luxembourg S.A. who acted as Transfer Agent and Registrar. For the period ended 30 June 2005, the Company paid the following fees to Merrill Lynch Investment Managers (Channel Islands) Limited, out of which Merrill Lynch Investment Managers (Channel Islands) Limited paid the fees of the Investment Advisers and Distributors. The level of Management fees varies from 0.65% to 1.75% according to which Fund the investor buys and with the exception of some Q shares and all X shares, is the same for all classes of Shares within each Fund. The level of Distribution fees varies from 0% to 1.25% according to which Fund and which Class the investors buy. The Management and Distribution fees per Share Class per Fund are disclosed in detail in the prospectus of the Company. 4. Custodian and Depository Fees Throughout the period the Custodian of the Company was The Bank of New York Europe Limited, Luxembourg Branch. The Company paid a combination of fees based upon net asset value, and the number and location of transactions. The total fees amounted to approximately 0.03% per annum of the Company’s average net asset value during the period. However, the actual level charged varies from time to time for each Fund according to the asset allocation and the level of transactions. 5. Fund Accounting Fees During the period, the Company paid Fund Accounting fees based on a tiered net asset value tariff, specific Fund Accounting functions and subject to minimum fee values. The total fees paid amounted to approximately 0.02% per annum of the Company’s average net asset value. 6. Transfer Agent Fees During the period, the Company paid the Transfer Agent fees based on the volume of transactions, number of holdings and maintenance fees. The total fees paid amounted to approximately 0.03% per annum of the Company’s average net asset value. 7. Tax Status Luxembourg The Company is registered under Luxembourg law as an investment company. Accordingly, no Luxembourg income or capital gains tax is at present payable by the Company. However, it is subject to an annual “taxe d’abonnement” calculated at an annual rate of 0.05%, and in the case of the Reserve Funds and all Class X shares, of 0.01% of the net asset value of each Fund at the end of each quarter. 172
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United Kingdom Distributor Status The Directors intend to apply in respect of each accounting period for certification of the UK Distributor Status Sterling Denominated Class A Shares in the United Kingdom as a distributing share class for United Kingdom tax purposes. However, no guarantee can be given that such certification will be obtained. The first accounting period will be for the year ended 31 December 2005. 8. Other Charges The Company bears all expenses incurred in the operation of the Company (whether incurred directly or by the Custodian, the Paying Agents, the Fund Accountant, the Principal Distributor, the Transfer Agent, or the Manager). The expenses borne by the Company also include costs incurred by the distributors and agents in complying with local regulatory requirements and other costs specifically incurred by them with the approval of the Directors. The Company also bears Restructuring expenses as defined and approved by the Board. The Company also contributes to the operating costs of the Investor Service Centre and the cost of other MLIM Group agents who also provide Investor support and administration services. Throughout the period, the total “Other charges“ paid by the Company amounted to approximately 0.09% per annum of average net asset value. 9. Investment Advice Merrill Lynch Investment Managers (Channel Islands) Limited has delegated investment advice and management as follows. Fund Asset Management, L.P. has provided investment advice for the following Funds: Asian Tiger Bond Fund Emerging Markets Bond Fund Global Allocation Fund Global SmallCap Fund Latin American Fund Pacific Equity Fund US Basic Value Fund US Dollar Core Bond Fund US Dollar High Yield Bond Fund US Dollar Low Duration Bond Fund
US Flexible Equity Fund US Focused Value Fund US Government Mortgage Fund US Growth Fund US Opportunities Fund US SmallCap Value Fund World Financials Fund World Healthscience Fund World Technology Fund
For all other Funds, investment advice is delegated to Merrill Lynch Investment Managers Limited. In some cases, Fund Asset Management, L.P. manage a portion of the Merrill Lynch Investment Managers Limited advised funds, and vice-versa. Both Fund Asset Management, L.P. and Merrill Lynch Investment Managers Limited are directly owned operating subsidiaries of Merrill Lynch & Co., Inc. 10. Transactions with Connected Persons The Company’s Investment Manager, Merrill Lynch Investment Managers (Channel Islands) Limited and Investment Advisers, Merrill Lynch Investment Managers Limited and Fund Asset Management, L.P. are subsidiaries of Merrill Lynch & Co., Inc. (“Merrill Lynch”). When arranging purchases and sales of securities for the Company, other Merrill Lynch companies may have acted as principal on best price and execution terms. Commission has been paid to brokers and agents in accordance with the relevant market practice and the benefit of any bulk or other commission discounts provided by brokers or agents has been passed on to the Company. The services of Merrill Lynch companies (including broker dealers) were used by the Investment Manager where it was considered appropriate to do so and provided that they made their services available to the Company on commission and other terms generally comparable with those available from unassociated brokers and agents in the markets concerned. During the period there have been no transactions which were outside the ordinary course of business or which were not on normal commercial terms. The total aggregate value of transactions of the Company effected through Merrill Lynch companies was US$1,808,946,556. The percentage of such transactions in value compared to the total transactions during the period amounted to 2.21% and the brokerage commission paid in relation to these transactions totalled US$3,256,840. The average rate of commission so paid was 0.18%.
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Notes to the Financial Statements
continued
11. Soft Commission Arrangements The Investment Adviser, Fund Asset Management, L.P., has entered into soft commission arrangements with brokers under which certain goods and services used to support investment decision making were received by the Investment Adviser. The Investment Adviser does not make direct payment for these services but transacts an agreed amount of business with the brokers on behalf of the Company. Commission is paid from the Company on these transactions. The goods and services utilised for the Company include computer hardware and software used for economic analysis and portfolio analysis including valuation and performance measurement, market analysis, and data and quotation services. 12. Securities Lending The Company has entered into securities lending with Merrill Lynch Investment Managers, LLC. Under this agreement, the Company may lend portions of its securities portfolio to third parties, subject to certain conditions, including adequate collateral. Such lending may only be effected via recognised clearing houses, or through the intermediary of prime financial institutions that specialise in such activities, in the terms and conditions agreed with them, including collateral. Such transactions may not be entered into for longer than 30 days. If the loan of securities exceeds 50% of the securities portfolio of the Fund concerned, it may only be effected on condition that it is possible to terminate the loan contract with immediate effect. Under such agreement, the Company may, direct the cash collateral to be invested in approved securities, resulting in income earned. The income earned from the securities lending program is shown in the specific Fund’s Statement of Operations and Changes in Net Assets on pages 24 to 33. As at 30 June 2005 the total valuation of securities on loan is US$744,869,668 and the market value of invested collateral is US$807,295,840. The collateral consists of cash which has been reinvested in 17% Government Bonds, 33% in Corporate Bonds (with a rating of A-1 or equivalent) and 50% in commercial papers, and time deposits. This collateral is held by the custodian and is not reflected in the financial statements. The table below provides the value of securities on loan which are evidenced by a “*“ in the relevant Fund’s portfolio, at a Fund level as at 30 June 2005: Euro-Markets Fund European Fund European Opportunities Fund European Value Fund Global Allocation Fund Global Bond Fund (Euro) Global Bond Fund (US Dollar) Global Equity Diversified Fund Global Fundamental Value Fund Global SmallCap Fund Japan Japan Opportunities Fund
US$21,356,887 US$12,232,369 US$28,832,393 US$54,387,993 US$29,403,980 US$44,991,620 US$25,200,535 US$12,290,368 US$12,720,462 US$15,807,139 US$16,160,925 US$7,935,983
New Energy Fund Pacific Fund US Basic Value Fund US Flexible Fund US Focused Value Fund US Growth Fund US SmallCap Value Fund World Energy Fund World Financials Fund World Gold Fund World Healthscience World Mining Fund
US$6,132,094 US$776,498 US$181,598,670 US$115,895,054 US$101,244,620 US$7,272,500 US$2,252,180 US$7,444,500 US$19,877,561 US$5,138,336 US$2,785,130 US$12,042,688
13. Securities Given in Guarantee Some securities given in guarantee for the option transactions are evidenced by a “†“ in the portfolios of the Funds. As at 30 June 2005, the value of these securities amounts to US$65,784,498. Securities which have been given as guarantee for futures transactions, are evidenced by a “‡“in the portfolios of the Funds. As at 30 June 2005, the value of these securities amounts to US$11,140,706,740. 14. Dividends The Director’s current policy is to retain and reinvest all net income except for income from Distributing Shares of the Distributing Funds and income from the UK Distributor Status Sterling Denominated Class A Shares. Dividends are paid monthly on the fixed income Distributing Funds and annually on the equity Distributing Funds. For the Distributors status fixed income fund (Sterling Reserve), dividends are paid monthly, for all other Distributor Status Funds, dividends are paid annually. 174
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For monthly fixed income Distributing funds, the Class A shares and Class C shares (certain Funds only) are further divided into Shares with a monthly calculation dividend, known as Distributing (M) Shares, and a daily calculation, known as Distributing (D) Shares. For Distributing (M) Shares the dividend is calculated and distributed monthly. For Distributing (D) Shares the dividend is calculated daily and a cumulative monthly dividend is distributed. These dividends are paid separately in respect of each Distributing Fund. For all shares except the UK Distributor Status Sterling Denominated Class A Shares, dividends of less than US$100 (or currency equivalent) will be automatically reinvested in further shares of the same Fund of the same class, except for shareholders acquiring shares through Merrill Lynch who will receive payment irrespective of the amount. Shareholders may also request automatic reinvestment of dividends of US$100 or more (or currency equivalent). For the UK Distributor Status Sterling Denominated Class A Shares all dividends will be paid out of the Fund within 10 Business Days. Where investors would like the distribution amount to be reinvested in further Shares of the same form of the same class of the same Fund, this will be arranged by the Transfer Agent. 15. Fund Launches On the 28 February 2005, the Japan Value Fund was launched, denominated in USD – additional dealing currency is available in Euro. 16. Fund Launches (Luxembourg and Germany only) On the 6 May 2005, the Global Focus Fund (denominated in US$) was launched, and on the 29 April 2005, the UK Focus Fund (denominated in Sterling) was launched. These funds are currently registered in Luxembourg and Germany. 17. Fund Name Change On 23 May 2005, the Global Equity Fund was renamed the Global Equity Diversified Fund. 18. Launch of Hedged Share Class – Global Allocation 22 April 2005, Classes A, B, C, and E Euro hedged share classes were made available for holders of shares denominated in the additional Euro dealing class (for certain shareholders only), and from 23 May 2005 to all shareholders. 19. Resignation of Director On 1 April 2005, Z.O.H.M. Baron van Hövell tot Westerflier resigned as Director of the Company. 20. Subsequent Events As approved by shareholders at the extraordinary general meeting on 22 May 2005, the Merrill Lynch Offshore Sterling Trust (“MLOST “) SICAV was merged into the MLIIF SICAV effective 22 July 2005: MLOST MLOST MLOST MLOST MLOST
Reserve Fund into MLIIF Sterling Reserve Fund; North American Fund into MLIIF US Flexible Equity Fund; United Kingdom Fund into MLIIF United Kingdom Fund; European Fund into MLIIF Continental European Growth Fund (a new MLIIF Fund created for this merger); and Global Fund into MLIIF Global Equity Core Fund (a new MLIIF Fund created for this merger).
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General Information Current Prospectus The Company’s Prospectus dated May 2005 and a partial prospectus dated May 2005, along with copies of the Application Form may be obtained from the Investor Service Centre, the Manager or any of the Representatives or Distributors. Copies of the Company’s Articles of Association and the Audited Annual and Unaudited Interim Report and Accounts may also be obtained free of charge from any of these offices and from the Paying Agents. Representatives The representative in Hong Kong is Merrill Lynch Investment Managers (Asia) Limited, 22nd Floor, Citibank Tower, 3 Garden Road, Central Hong Kong. The representative in Switzerland is Merrill Lynch Investment Managers Limited (London), Zurich Branch, Stockerstrasse 23, PO Box 175, CH-8039 Zurich. Authorised Status The Company is an undertaking for collective investment in transferable securities (“UCITS”) under the Luxembourg law of 30 March 1988. Regulatory consents have been obtained or appropriate notifications have been made for the distribution of shares of the Company’s Funds in Austria, Bahrain, Belgium, Brunei, Chile (certain Funds only), Finland, France, Germany, Gibraltar, Greece, Guernsey, Hong Kong, Iceland, Ireland, Italy, Jersey, Korea, Malta (certain Funds only), Mauritius, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, Taiwan (certain Funds only) and the United Kingdom. Shares in the Company may also be offered in Japan by private placement. Paying Agents Austria Raiffeisen Zentralbank Österreich AG Am Stadtpark 9 A-1030 Vienna
Switzerland HSBC Private Bank (Suisse) S.A. Paradeplatz 5 CH-8022 Zurich
Belgium Citibank Bank nv/sa Boulevard Général Jacques, 263g B-1050 Brussels
Germany Commerzbank Kaiserplatz D-60261 Frankfurt am Main (and branches)
Luxembourg J.P. Morgan Bank Luxembourg S.A. (as of 1 February 2005) European Bank & Business Centre 6C, route de Trèves L-2633 Senningerberg Grand-Duchy of Luxembourg
United Kingdom UBS Warburg (a financial services group of UBS AG) 1, Finsbury Avenue London EC2M 2PP Attention : Corporate Action Paying Agency
Publication of Prices and Notices to Shareholders Notices of General Meetings are given by publication in the Recueil Spécial du Mémorial and the d’Wort in Luxembourg, in the Financial Times in London, and also in newspapers in Frankfurt, Vienna and Zurich. Financial notices are given by publication in the Financial Times in London, and also in Luxembourg, Frankfurt, Vienna and Zurich. The previous Dealing Day’s prices for Shares may be obtained during business hours from the Investor Service Centre. They will also be published in such countries as required under applicable law and at the discretion of the Directors in a number of newspapers worldwide. The Company cannot accept any responsibility for error or delay in the publication or non-publication of prices. Historic dealing prices for all Shares are available from the Fund Accountant or the Investor Service Centre. Purchases and Sales A detailed list of investments purchased and sold for any Fund during the period is available upon request, free of charge, from the Registered office, or the offices of the Representatives as mentioned above. Disclosure Policy Details of month end holdings and valuations for all MLIIF Sub-Funds will be made available upon request from the Investor Service Centre to any MLIIF Shareholder no earlier than 20 calendar days after a given month end. MLIIF reserves the right to require Shareholders to sign an appropriate non-disclosure document prior to providing such information.
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Global Equity Funds
Global Sector Funds
Americas Equity Funds
European Equity Funds
Pacific Equity Funds
Mixed Asset Funds
Globally Invested Bond Funds
Regionally Invested Bond Funds
RRD 952639 MLIIF IR ENG 0605