-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MVSS/TGbHnIcj5WcQObWbJDkgnq+DwMobXpDC7Utnf7ngot40sQU7e35u159a87F DZ10KQJxoYb7y0FmzWsQ+g== 0001193805-03-000816.txt : 20030902 0001193805-03-000816.hdr.sgml : 20030901 20030902095941 ACCESSION NUMBER: 0001193805-03-000816 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030902 EFFECTIVENESS DATE: 20030902 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH INDEX FUNDS INC CENTRAL INDEX KEY: 0001026144 IRS NUMBER: 223483675 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07899 FILM NUMBER: 03875337 BUSINESS ADDRESS: STREET 1: MERRILL LYNCH ASSET MANAGEMENT STREET 2: 800 SCUDDERS MILL ROAD CITY: PLAINSBORO STATE: NJ ZIP: 08536 BUSINESS PHONE: 6092820785 MAIL ADDRESS: STREET 1: MERRILL LYNCH ASSET MANAGEMENT STREET 2: 800 SCUDDERS MILL ROAD CITY: PLAINSBORO STATE: NJ ZIP: 08536 N-CSR 1 e300596_ncsr-mlint.txt SEMI-ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-7899 811-7885 Name of Fund: Merrill Lynch International Index Fund Master International Index Series Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Terry K. Glenn, President, Merrill Lynch International Index Fund, 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 12/31/03 Date of reporting period: 01/01/03 - 06/30/03 Item 1 - Attach shareholder report [LOGO] Merrill Lynch Investment Managers Semi-Annual Report June 30, 2003 Merrill Lynch International Index Fund Merrill Lynch Index Funds, Inc. www.mlim.ml.com Merrill Lynch International Index Fund Officers and Directors Terry K. Glenn, President and Director/Trustee Donald W. Burton, Director/Trustee M. Colyer Crum, Director/Trustee Laurie Simon Hodrick, Director/Trustee Fred G. Weiss, Director/Trustee Robert C. Doll, Jr., Senior Vice President Richard J. Vella, Vice President Donald C. Burke, Vice President and Treasurer Brian D. Stewart, Secretary Custodian JPMorgan Chase Bank 4 Chase MetroTech Center, 18th Floor Brooklyn, NY 11245 Transfer Agent Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, FL 32246-6484 800-637-3863 Merrill Lynch International Index Fund, June 30, 2003 DEAR SHAREHOLDER Effective April 14, 2003, the share class names for the Merrill Lynch Family of mutual funds were changed to be consistent with the standard share classes of most other mutual fund families. As of that date, all Class A Shares were redesignated as Class I Shares. At the same time, Class D Shares were redesignated Class A Shares. Trading symbols have not been changed nor have current eligibility rules or pricing structures. This redesignation of share classes does not impact your investment in any way. Investment Environment The first quarter of 2003 brought negative returns and extreme volatility. The U.S. markets lost ground consistently during the beginning of the quarter then spiked on news of the start of war with Iraq. The downtrend returned after investors realized that the conflict might last longer than anticipated, potentially curbing business spending. Most indexes finished the first quarter in negative territory. The second quarter of 2003 brought impressive gains and what some are calling a "bull rally." The U.S. markets rose consistently over the quarter, spurred by optimism that economic and profit growth will accelerate. On June 16, 2003, the Standard & Poor's (S&P) 500 Index closed above the 1,000 mark (at 1,010.74) for the first time since June 20, 2002. Most indexes finished the six-month period ended June 30, 2003 in positive territory, with the Dow Jones Industrial Average closing at 8,985.44, up 7.72% for the period, and the S&P 500 Index closing at 974.50, up 10.76% for the period. The NASDAQ Composite Index closed at 1,622.80, up an impressive 21.51%. Technology stocks have outperformed the broader market on expectations that companies in that sector will be among the first beneficiaries of an economic recovery. The European stock markets were even more volatile than domestic, with the Dow Jones Euro STOXX 50 closing at 2,491.51, up 1.39% in euros. The euro continued to appreciate during the six-month period ended June 30, 2003, closing at a rate of 1.1484, up 9.43%. Global markets saw positive returns for the six months trailing as well, with the Morgan Stanley Capital International (MSCI) World Index closing at 871.07, up 9.95%, in U.S. dollars. Portfolio Matters For the six months ended June 30, 2003, Merrill Lynch International Index Fund's Class A and Class I Shares had total returns of +9.49% and +9.60%, respectively, compared to the unmanaged benchmark MSCI Europe, Australasia, Far East (EAFE) Index's total return of +9.47%. (Complete performance information can be found on page 4 of this report to shareholders.) The Fund met its objective of closely tracking the return of its benchmark. The best-performing countries for the period were New Zealand, Spain and Austria, whereas The Netherlands was the worst-performing country. Turning to sector performance, all ten EAFE sectors posted a positive return for the six-month period ended June 30, 2003. The top performer was information technology, followed by telecommunications services and financials. Worst performers included consumer staples and materials and energy. Market Review Investor confidence remained shaken early in 2003 with threats of terrorism, nuclear tensions in North Korea, and unexpectedly high unemployment. The war in Iraq left investors with inconsistent views about the market, and trading was reactionary to news from the front lines. However, markets rallied following the resolution of military affairs in Iraq, and investors became increasingly bullish about the outlook for equities. The rise was notable for all sectors and countries. It has been encouraging to see that the SARS virus appears to have been brought under control in Hong Kong, Singapore, China and, hopefully, Taiwan. Despite unstable markets, the Federal Reserve Board left interest rates unchanged at 1.25% at its January 29 and March 18, 2003 meetings. After leaving interest rates unchanged again at its May 6 meeting, the Federal Reserve Board lowered its target for the Federal Funds rate by 25 basis points (.25%) to 1% at its June 25 meeting, bringing the rate to a 49-year low. The Federal Reserve Board continues to use an accommodative stance of monetary policy, coupled with an underlying growth in productivity, to provide ongoing support to economic activity. The modest 25 basis point cut rather than the expected 50 basis point cut leaves room for further Federal Reserve Board interest rate reductions in the future. In response to the Federal Reserve Board's decision, financial markets were initially disappointed, with long-term interest rates backing up sharply and stock prices falling. This movement will likely be moderated by the realization that the growth outlook will be strengthened. Economic Outlook Economic indicators for the current economy are ambiguous, but the economy may strengthen and produce strong results for the second half of 2003. Many of the geopolitical factors that may have exacerbated the slowdown in activity (war fears, higher oil prices, poor weather and SARS) have been largely resolved. While the economy is improving, the rate of change is only gradual. Data indicates that further policy stimulus will hit the economy in the second half of the year, but it is worth noting the lack of growth given the large cuts in interest rates already seen. Additionally, a key factor is the concern about whether consumers will continue to spend long enough to prop up the economy until a corporate spending cycle emerges. In Conclusion We appreciate your investment in Merrill Lynch International Index Fund, and we look forward to assisting you with your investment needs in the months and years ahead. Sincerely, /s/ Terry K. Glenn Terry K. Glenn President and Director/Trustee /s/ Richard J. Vella Richard J. Vella Vice President and Senior Portfolio Manager July 18, 2003 2 & 3 Merrill Lynch International Index Fund, June 30, 2003 PERFORMANCE DATA About Fund Performance Effective April 14, 2003, Class A Shares were redesignated Class I Shares and Class D Shares were redesignated Class A Shares. Investors are able to purchase shares of the Fund through two pricing alternatives: o Class A Shares do not incur a maximum initial sales charge or deferred sales charge and bear no ongoing distribution fee. In addition, Class A Shares are subject to an ongoing account maintenance fee of 0.25%. o Class I Shares do not incur a maximum initial sales charge (front-end load) or deferred sales charge and bear no ongoing distribution or account maintenance fees. Class I Shares are available only to eligible investors. None of the past results shown should be considered a representation of future performance. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in each of the following tables assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of account maintenance and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund's Administrator and the Series' Investment Adviser waived a portion of their administrative fee and all of their management fee, respectively. In addition, the Investment Adviser reimbursed a portion of its other expenses. Without such waiver and reimbursement, the Fund's performance would have been lower. Recent Performance Results
6-Month 12-Month Since Inception As of June 30, 2003 Total Return Total Return Total Return =================================================================================================== ML International Index Fund Class A Shares* +9.49% - 7.06% +3.12% - --------------------------------------------------------------------------------------------------- ML International Index Fund Class I Shares* +9.60 - 6.92 +4.68 - --------------------------------------------------------------------------------------------------- MSCI EAFE Index -- Cap Weighted** +9.47 - 6.46 -2.77 ===================================================================================================
* Total investment returns are based on changes in net asset values for the periods shown, and assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date. The Fund's inception date is 4/09/97. On 12/14/01, the Fund changed its benchmark index from the MSCI EAFE Index--GDP Weighted to the MSCI EAFE Index--Cap Weighted. Accordingly, the Fund's since inception total returns reflects investment performance prior to 12/14/01 when the Fund's benchmark was the MSCI EAFE Index--GDP Weighted. ** This unmanaged capitalization-weighted Index is comprised of equity securities of companies from various industrial sectors whose primary trading markets are located outside the United States and that are selected from among the larger-capitalization companies in such markets. Since inception total return is from 4/30/97. Average Annual Total Return Class A Shares % Return ================================================================================ One Year Ended 6/30/03 -7.06% - -------------------------------------------------------------------------------- Five Years Ended 6/30/03 -4.80 - -------------------------------------------------------------------------------- Inception (4/09/97) through 6/30/03 +0.49 - -------------------------------------------------------------------------------- Class I Shares % Return ================================================================================ One Year Ended 6/30/03 -6.92% - -------------------------------------------------------------------------------- Five Years Ended 6/30/03 -4.56 - -------------------------------------------------------------------------------- Inception (4/09/97) through 6/30/03 +0.74 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES
MERRILL LYNCH INTERNATIONAL INDEX FUND As of June 30, 2003 ============================================================================================================================== Assets: Investment in Master International Index Series, at value (identified cost--$96,277,580) ..................................... $ 95,346,471 Prepaid registration fees and other assets ......................... 23,533 ------------- Total assets ....................................................... 95,370,004 ------------- ============================================================================================================================== Liabilities: Payables: Administrator .................................................... $ 27,728 Distributor ...................................................... 15,875 Other affiliates ................................................. 3,583 47,186 ------------- Accrued expenses and other liabilities ............................. 55,385 ------------- Total liabilities .................................................. 102,571 ------------- ============================================================================================================================== Net Assets: Net assets ......................................................... $ 95,267,433 ============= ============================================================================================================================== Net Assets Class A Shares of Common Stock, $.0001 par value, 125,000,000 shares Consist of: authorized ......................................................... $ 961 Class I Shares of Common Stock, $.0001 par value, 125,000,000 shares authorized ......................................................... 271 Paid-in capital in excess of par ................................... 105,637,721 Undistributed investment income--net ............................... $ 1,270,155 Accumulated realized capital losses on investments and foreign currency transactions from the Series--net ......................... (10,710,566) Unrealized depreciation on investments and foreign currency transactions from the Series--net .................................. (931,109) ------------- Total accumulated losses--net ...................................... (10,371,520) ------------- Net assets ......................................................... $ 95,267,433 ============= ============================================================================================================================== Net Asset Class A--Based on net assets of $74,263,498 and 9,606,882 shares Value: outstanding ........................................................ $ 7.73 ============= Class I--Based on net assets of $21,003,935 and 2,705,607 shares outstanding ........................................................ $ 7.76 ============= ==============================================================================================================================
See Notes to Financial Statements. 4 & 5 Merrill Lynch International Index Fund, June 30, 2003 STATEMENT OF OPERATIONS
MERRILL LYNCH INTERNATIONAL INDEX FUND For the Six Months Ended June 30, 2003 ============================================================================================================================== Investment Income Net investment income allocated from the Series: From the Series--Net: Dividends (net of $191,853 foreign withholding tax) ............. $ 1,497,949 Interest ......................................................... 12,028 Securities lending--net .......................................... 23,201 Expenses (net of $8,793 waiver of expenses) ...................... (51,967) ------------- Net investment income from the Series .............................. 1,481,211 ------------- ============================================================================================================================== Expenses: Administration fees ................................................ $ 142,867 Account maintenance fee--Class A ................................... 80,971 Printing and shareholder reports ................................... 25,377 Transfer agent fees ................................................ 24,002 Registration fees .................................................. 17,085 Professional fees .................................................. 11,688 Directors' fees and expenses ....................................... 576 Other .............................................................. 3,727 ------------- Total expenses before waiver of expenses ........................... 306,293 Waiver of expenses ................................................. (7,761) ------------- Total expenses after waiver of expenses ............................ 298,532 ------------- Investment income--net ............................................. 1,182,679 ------------- ============================================================================================================================== Realized & Realized gain (loss) from the Series on: Unrealized Gain Investments--net ................................................. (1,394,562) (Loss) from the Foreign currency transactions--net ............................... 356,128 (1,038,434) Series--Net: ------------- Change in unrealized appreciation/depreciation on investments and foreign currency transactions from the Series--net ................. 8,026,761 ------------- Total realized and unrealized gain on investments and foreign currency transactions--net ......................................... 6,988,327 ------------- Net Increase in Net Assets Resulting from Operations ............... $ 8,171,006 ============= ==============================================================================================================================
See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS
For the Six For the MERRILL LYNCH Months Ended Year Ended INTERNATIONAL June 30, December 31, INDEX FUND Increase (Decrease) in Net Assets: 2003 2002 ============================================================================================================================ Operations: Investment income--net ........................................... $ 1,182,679 $ 1,243,593 Realized loss on investments and foreign currency transactions from the Series--net ............................................. (1,038,434) (5,216,018) Change in unrealized appreciation/depreciation on investments and foreign currency transactions from the Series--net ............... 8,026,761 (10,906,818) ------------- ------------- Net increase (decrease) in net assets resulting from operations .. 8,171,006 (14,879,243) ------------- ------------- ============================================================================================================================ Dividends & Investment income--net: Distributions to Class A ........................................................ -- (1,068,837) Shareholders: Class I ........................................................ -- (397,947) Realized gain on investments from the Series--net: Class A ........................................................ -- (64,318) Class I ........................................................ -- (28,225) ------------- ------------- Net decrease in net assets resulting from dividends and distributions to shareholders .................................... -- (1,559,327) ------------- ------------- ============================================================================================================================ Capital Share Net increase in net assets derived from capital share transactions 5,016,209 19,315,936 Transactions: ------------- ------------- ============================================================================================================================ Net Assets: Total increase in net assets ..................................... 13,187,215 2,877,366 Beginning of period .............................................. 82,080,218 79,202,852 ------------- ------------- End of period* ................................................... $ 95,267,433 $ 82,080,218 ============= ============= ============================================================================================================================ * Undistributed investment income--net ............................. $ 1,270,155 $ 87,476 ============= ============= ============================================================================================================================
See Notes to Financial Statements. 6 & 7 Merrill Lynch International Index Fund, June 30, 2003 FINANCIAL HIGHLIGHTS
Class A++ The following per share data and ratios have been -------------------------------------------------------- derived from information provided in the financial For the Six For the Year Ended MERRILL LYNCH statements. Months Ended December 31, INTERNATIONAL June 30, ------------------------------------------ INDEX FUND Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999 =================================================================================================================================== Per Share Net asset value, beginning of period ................. $ 7.06 $ 8.62 $ 11.33 $ 15.13 $ 12.05 Operating -------- -------- -------- -------- -------- Performance: Investment income--net@ .............................. .10 .11 .08 .09 .08 Realized and unrealized gain (loss) on investments and foreign currency transactions from the Series--net ... .57 (1.53) (2.64) (2.80) 3.61 -------- -------- -------- -------- -------- Total from investment operations ..................... .67 (1.42) (2.56) (2.71) 3.69 -------- -------- -------- -------- -------- Less dividends and distributions: Investment income--net ............................. -- (.13) (.08) (.02) (.07) In excess of investment income--net ................ -- -- -- -- -- Realized gain on investments from the Series--net .. -- (.01) (.07) (.53) (.54) In excess of realized gain on investments from the Series--net ........................................ -- -- -- (.54) -- -------- -------- -------- -------- -------- Total dividends and distributions .................... -- (.14) (.15) (1.09) (.61) -------- -------- -------- -------- -------- Net asset value, end of period ....................... $ 7.73 $ 7.06 $ 8.62 $ 11.33 $ 15.13 ======== ======== ======== ======== ======== =================================================================================================================================== Total Investment Based on net asset value per share ................... 9.49%@@ (16.21%) (22.60%) (18.00%) 30.95% Return: ======== ======== ======== ======== ======== =================================================================================================================================== Ratios to Average Expenses, net of waiver of expenses+ ................. .89%* .84% .89% .89% .89% Net Assets: ======== ======== ======== ======== ======== Expenses+ ............................................ .93%* .92% 1.05% .96% .95% ======== ======== ======== ======== ======== Investment income--net ............................... 2.76%* 1.43% .82% .67% .65% ======== ======== ======== ======== ======== =================================================================================================================================== Supplemental Net assets, end of period (in thousands) ............. $ 74,263 $ 62,310 $ 52,836 $ 46,623 $ 30,480 Data: ======== ======== ======== ======== ======== Portfolio turnover of the Series ..................... 10.11% 19.52% 30.19% 5.89% .00% ======== ======== ======== ======== ======== =================================================================================================================================== Class I+++ The following per share data and ratios have been -------------------------------------------------------- derived from information provided in the financial For the Six For the Year Ended statements. Months Ended December 31, June 30, ------------------------------------------ Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999 =================================================================================================================================== Per Share Net asset value, beginning of period ................. $ 7.08 $ 8.64 $ 11.36 $ 15.13 $ 12.04 Operating -------- -------- -------- -------- -------- Performance: Investment income--net@ .............................. .11 .14 .12 .14 .13 Realized and unrealized gain (loss) on investments and foreign currency transactions from the Series--net ... .57 (1.55) (2.67) (2.82) 3.59 -------- -------- -------- -------- -------- Total from investment operations ..................... .68 (1.41) (2.55) (2.68) 3.72 -------- -------- -------- -------- -------- Less dividends and distributions: Investment income--net ............................. -- (.14) (.10) (.02) (.09) In excess of investment income--net ................ -- -- -- -- -- Realized gain on investments from the Series--net .. -- (.01) (.07) (.53) (.54) In excess of realized gain on investments from the Series--net ........................................ -- -- -- (.54) -- -------- -------- -------- -------- -------- Total dividends and distributions .................... -- (.15) (.17) (1.09) (.63) -------- -------- -------- -------- -------- Net asset value, end of period ....................... $ 7.76 $ 7.08 $ 8.64 $ 11.36 $ 15.13 ======== ======== ======== ======== ======== =================================================================================================================================== Total Investment Based on net asset value per share ................... 9.60%@@ (16.06%) (22.45%) (17.80%) 31.29% Return: ======== ======== ======== ======== ======== =================================================================================================================================== Ratios to Average Expenses, net of waiver of expenses+ ................. .64%* .58% .64% .65% .64% Net Assets: ======== ======== ======== ======== ======== Expenses+ ............................................ .68%* .67% .81% .71% .69 ======== ======== ======== ======== ======== Investment income--net ............................... 2.99%* 1.72% 1.18% 1.02% 1.05% ======== ======== ======== ======== ======== =================================================================================================================================== Supplemental Net assets, end of period (in thousands) ............. $ 21,004 $ 19,770 $ 26,367 $ 37,387 $104,427 Data: ======== ======== ======== ======== ======== Portfolio turnover of the Series ..................... 10.11% 19.52% 30.19% 5.89% .00% ======== ======== ======== ======== ======== ===================================================================================================================================
* Annualized + Includes the Fund's share of the GDP Series' and Series' allocated expenses. ++ Effective April 14, 2003, Class D Shares were redesignated Class A Shares. +++ Effective April 14, 2003, Class A Shares were redesignated Class I Shares. @ Based on average shares outstanding. @@ Aggregate total investment return. See Notes to Financial Statements. 8 & 9 Merrill Lynch International Index Fund, June 30, 2003 NOTES TO FINANCIAL STATEMENTS MERRILL LYNCH INTERNATIONAL INDEX FUND 1. Significant Accounting Policies: Merrill Lynch International Index Fund (the "Fund") is part of Merrill Lynch Index Funds, Inc. (the "Corporation"). The Fund is registered under the Investment Company Act of 1940, as amended, as a non-diversified mutual fund. The Fund seeks to achieve its investment objective by investing all of its assets in Master International Index Series (the "Series") of the Quantitative Master Series Trust, which has the same investment objective as the Fund. The value of the Fund's investment in the Series reflects the Fund's proportionate interest in the net assets of the Series. The performance of the Fund is directly affected by the performance of the Series. The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund's financial statements. The Fund's financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. These unaudited financial statements reflect all adjustments, which are, in the opinion of management, necessary to a fair statement of the results for the interim period presented. All such adjustments are of a normal, recurring nature. The percentage of the Series owned by the Fund at June 30, 2003 was 53.4%. The Fund offers two classes of shares, Class A and Class I. Effective April 14, 2003, Class A Shares were redesignated Class I Shares and Class D Shares were redesignated Class A Shares. The Fund's financial statements and financial highlights contained within this report reflect the new share class redesignation. Shares of Class A and Class I are sold without the imposition of a front-end or deferred sales charge. Both classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Class A Shares bear certain expenses related to the account maintenance of such shares and have exclusive voting rights with respect to matters relating to its account maintenance expenditures. The following is a summary of significant accounting policies followed by the Fund. (a) Valuation of investments -- The Fund records its investment in the Series at fair value. Valuation of securities held by the Series is discussed in Note 1a of the Series' Notes to Financial Statements, which are included elsewhere in this report. (b) Investment income and expenses -- The Fund records daily its proportionate share of the Series' income, expenses and realized and unrealized gains and losses. In addition, the Fund accrues its own expenses. (c) Income taxes -- It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to shareholders. Therefore, no Federal income tax provision is required. Under the applicable foreign tax law, a withholding tax may be imposed on interest, dividends and capital gains at various rates. (d) Prepaid registration fees -- Prepaid registration fees are charged to expense as the related shares are issued. (e) Dividends and distributions -- Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. (f) Investment transactions -- Investment transactions in the Series are accounted for on a trade date basis. 2. Transactions with Affiliates: The Corporation has entered into an Administration Services Agreement with Merrill Lynch Investment Managers, L.P. ("MLIM"). The general partner of MLIM is Princeton Services, Inc. ("PSI"), a wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner. The Fund pays a monthly fee at an annual rate of .34% of the Fund's average daily net assets for the performance of administrative services (other than investment advice and related portfolio activities) necessary for the operation of the Fund. For the six months ended June 30, 2003, MLIM earned fees of $142,867 of which $7,761 was waived. The Corporation has also entered into a Distribution Agreement and Distribution Plan with FAM Distributors, Inc. ("FAMD" or the "Distributor"), a wholly-owned subsidiary of Merrill Lynch Group, Inc. Pursuant to the Distribution Plan adopted by the Corporation in accordance with Rule 12b-1 under the Investment Company Act of 1940, the Fund pays the Distributor ongoing account maintenance fees. The fees are accrued daily and paid monthly at the annual rate of .25% based upon the average daily net assets of Class A Shares. Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML & Co., also provides account maintenance services to the Fund. The ongoing account maintenance fee compensates the Distributor and MLPF&S for providing account maintenance services to Class A shareholders. Financial Data Services, Inc. ("FDS"), an indirect, wholly-owned subsidiary of ML & Co., is the Fund's transfer agent. Certain officers and/or directors of the Fund are officers and/or directors of MLIM, PSI, FAMD, FDS, and/or ML & Co. 3. Capital Share Transactions: Net increase in net assets derived from capital share transactions was $5,016,209 and $19,315,936 for the six months ended June 30, 2003, and the year ended December 31, 2002, respectively. Transactions in capital shares for each class were as follows: - ------------------------------------------------------------------------------- Class A Shares for the Six Months Dollar Ended June 30, 2003+ Shares Amount - ------------------------------------------------------------------------------- Shares sold .............................. 1,248,269 $ 8,857,983 Shares redeemed .......................... (466,859) (3,241,890) ------------ ------------ Net increase ............................. 781,410 $ 5,616,093 ============ ============ - ------------------------------------------------------------------------------- + Effective April 14, 2003, Class D Shares were redesignated Class A Shares. - ------------------------------------------------------------------------------- Class A Shares for the Year Dollar Ended December 31, 2002+ Shares Amount - ------------------------------------------------------------------------------- Shares sold .............................. 4,396,623 $ 34,902,021 Shares issued to shareholders in reinvestment of dividends and distributions ............................ 157,663 1,101,783 ------------ ------------ Total issued ............................. 4,554,286 36,003,804 Shares redeemed .......................... (1,861,709) (14,766,684) ------------ ------------ Net increase ............................. 2,692,577 $ 21,237,120 ============ ============ - ------------------------------------------------------------------------------- + Effective April 14, 2003, Class D Shares were redesignated Class A Shares. - ------------------------------------------------------------------------------- Class I Shares for the Six Months Dollar Ended June 30, 2003+ Shares Amount - ------------------------------------------------------------------------------- Shares sold .............................. 566,561 $ 4,042,331 Shares redeemed .......................... (652,819) (4,642,215) ------------ ------------ Net decrease ............................. (86,258) $ (599,884) ============ ============ - ------------------------------------------------------------------------------- + Effective April 14, 2003, Class A Shares were redesignated Class I Shares. - ------------------------------------------------------------------------------- Class I Shares for the Year Dollar Ended December 31, 2002+ Shares Amount - ------------------------------------------------------------------------------- Shares sold .............................. 1,262,185 $ 10,249,011 Shares issued to shareholders in reinvestment of dividends and distributions ........................ 57,314 402,502 ------------ ------------ Total issued ............................. 1,319,499 10,651,513 Shares redeemed .......................... (1,579,132) (12,572,697) ------------ ------------ Net decrease ............................. (259,633) $ (1,921,184) ============ ============ - ------------------------------------------------------------------------------- + Effective April 14, 2003, Class A Shares were redesignated Class I Shares. 4. Capital Loss Carryforward: On December 31, 2002, the Fund had a net capital loss carryforward of $7,367,638, all of which expires in 2010. This amount will be available to offset like amounts of any future taxable gains. 5. Subsequent Event: The Fund paid an ordinary income dividend in the amount of $.015778 per share on July 22, 2003 to shareholders of record on July 16, 2003. 10 & 11 June 30, 2003 SCHEDULE OF INVESTMENTS (in U.S. dollars)
Master International Index Series ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Australia Beverages--0.2% 15,506 Coca-Cola Amatil Limited $ 59,379 83,121 Foster's Brewing Group Limited 234,687 8,843 Southcorp Limited 16,724 ----------- 310,790 ------------------------------------------------------------------------------------------------------------------ Biotechnology--0.0% 3,407 CSL Limited 27,305 ------------------------------------------------------------------------------------------------------------------ Capital Markets--0.1% 10,694 Macquarie Bank Limited 206,552 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.0% 5,805 Orica Limited 42,163 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--1.7% 50,236 Australia and New Zealand Banking Group Ltd. 626,989 40,816 Commonwealth Bank of Australia 808,879 45,536 National Australia Bank Limited 1,023,048 60,555 Westpac Banking Corporation Limited 659,932 ----------- 3,118,848 ------------------------------------------------------------------------------------------------------------------ Commercial Services & 44,098 Brambles Industries Limited 135,155 Supplies--0.1% ------------------------------------------------------------------------------------------------------------------ Construction 19,286 Boral Limited 65,447 Materials--0.2% 36,728 CSR Limited 47,785 8,663 James Hardie Industries NV 40,901 36,728 Rinker Group Limited 129,070 ----------- 283,203 ------------------------------------------------------------------------------------------------------------------ Containers & 25,946 Amcor Limited 141,294 Packaging--0.1% ------------------------------------------------------------------------------------------------------------------ Diversified Financial 10,318 Suncorp-Metway Limited 80,269 Services--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified 52,103 Telstra Corporation Limited 153,749 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Food & Staples 28,979 Coles Myer Limited 136,043 Retailing--0.3% 39,044 Woolworths Limited 327,834 ----------- 463,877 ------------------------------------------------------------------------------------------------------------------ Gas Utilities--0.1% 20,023 Australian Gas Light Company Limited 147,041 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 993 Cochlear Limited 21,510 Supplies--0.0% 7,344 Pacific Dunlop Limited (a) 28,813 ----------- 50,323 ------------------------------------------------------------------------------------------------------------------ Health Care Providers & 33,090 Mayne Nickless Limited 60,806 Services--0.0% ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 77,973 Aristocrat Leisure Limited 69,549 Leisure--0.1% 19,869 TABCORP Holdings Limited 143,512 ----------- 213,061 ------------------------------------------------------------------------------------------------------------------ IT Services--0.0% 11,639 Computershare Limited 14,597 ------------------------------------------------------------------------------------------------------------------ Industrial 10,979 Wesfarmers Limited 186,286 Conglomerates--0.1% ------------------------------------------------------------------------------------------------------------------ Insurance--0.2% 27,802 AMP Limited 92,668 24,564 Insurance Australia Group Limited 56,011 30,223 QBE Insurance Group Limited 188,908 ----------- 337,587 ------------------------------------------------------------------------------------------------------------------ Media--0.3% 31,318 John Fairfax Holdings Limited 60,490 52,723 The News Corporation Limited 396,017 ----------- 456,507 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.6% 42,215 Alumina Limited 115,228 105,585 BHP Billiton Limited 611,803 27,058 BHP Steel Limited 67,505 20,996 Newcrest Mining Limited 107,719 23,360 OneSteel Limited 30,079 4,633 Rio Tinto Limited 90,759 42,215 WMC Resources Limited (a) 99,373 ----------- 1,122,466 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--0.1% 1,355 Origin Energy Limited 3,680 24,995 Santos Limited 98,901 6,460 Woodside Petroleum Limited 53,635 ----------- 156,216 ------------------------------------------------------------------------------------------------------------------ Paper & Forest 377 Paperlinx Limited 1,158 Products--0.0% ------------------------------------------------------------------------------------------------------------------ Real Estate--0.5% 52,807 AMP Diversified Property Trust 108,016 112,770 Gandel Retail Trust 100,587 62,350 General Property Trust 122,100 18,698 Lend Lease Corporation Limited 104,707 43,171 Mirvac Group 128,550 46,236 Stockland Trust Group 155,351 4,962 Westfield Holdings Limited 48,585 92,935 Westfield Trust 215,028 ----------- 982,924 ------------------------------------------------------------------------------------------------------------------ Transportation 24,317 Macquarie Infrastructure Group 58,546 Infrastructure--0.1% 5,500 Patrick Corporation Limited 46,292 ----------- 104,838 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Australia (Cost--$7,123,884)--4.9% 8,797,015 ===================================================================================================================================
12 & 13 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Austria Building Products--0.0% 122 Wienerberger Baustoffindustrie AG $ 2,144 ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.0% 53 RHI AG (a) 630 ------------------------------------------------------------------------------------------------------------------ Containers & Packaging--0.1% 911 Mayr-Melnhof Karton AG 75,856 ------------------------------------------------------------------------------------------------------------------ Diversified 3,644 Telekom Austria AG (a) 41,344 Telecommunication Services--0.0% ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.0% 47 Oesterreichische Elektrizitaetswirtschafts-AG "Verbund" 'A' 4,330 ------------------------------------------------------------------------------------------------------------------ Machinery--0.0% 458 VA Technologie AG (a) 12,102 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.0% 390 Boehler-Uddeholm AG 21,555 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--0.0% 329 OMV AG 39,526 ------------------------------------------------------------------------------------------------------------------ Transportation 1,446 Flughafen Wien AG 52,555 Infrastructure--0.0% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Austria (Cost--$199,801)--0.1% 250,042 =================================================================================================================================== Belgium Beverages--0.0% 2,492 Interbrew 55,374 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.1% 1,416 Solvay SA 97,564 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.2% 17,437 Dexia 220,462 2,802 KBC Bancassurance Holding 110,012 ----------- 330,474 ------------------------------------------------------------------------------------------------------------------ Construction & 4,785 Suez Lyonnaise des Eaux SA (a) 55 Engineering--0.0% ------------------------------------------------------------------------------------------------------------------ Distributors--0.0% 222 D'leteren SA 31,816 ------------------------------------------------------------------------------------------------------------------ Diversified Financial 34,518 Fortis 599,338 Services--0.4% 2,091 Groupe Bruxelles Lambert SA 94,607 ----------- 693,945 ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.1% 908 Electrabel SA 231,375 ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.0% 1,022 Bekaert NV 47,766 ------------------------------------------------------------------------------------------------------------------ Electronic Equipment & 520 Barco NV (New Shares) 31,111 Instruments--0.0% ------------------------------------------------------------------------------------------------------------------ Food & Staples 1,048 Colruyt NV 72,449 Retailing--0.1% 592 Delhaize "Le Lion" SA 18,015 ----------- 90,464 ------------------------------------------------------------------------------------------------------------------ Food Products--0.0% 950 Delhaize "Le Lion" SA (ADR) (b) 29,127 ------------------------------------------------------------------------------------------------------------------ Leisure Equipment & 5,023 Agfa Gevaert NV 106,653 Products--0.1% ------------------------------------------------------------------------------------------------------------------ Marine--0.0% 628 Compagnie Maritime Belge SA (CMB) 24,880 628 Exmar NV (a) 21,462 ----------- 46,342 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.0% 1,057 Union Miniere SA 54,779 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--0.1% 4,104 UCB SA 112,448 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Belgium (Cost--$2,134,930)--1.1% 1,959,293 =================================================================================================================================== Bermuda Specialty Retail--0.0% 21,785 Yue Yuen Industrial (Holdings) Limited 55,733 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Bermuda (Cost--$50,757)--0.0% 55,733 =================================================================================================================================== Denmark Beverages--0.0% 285 Carlsberg A/S 'B' 10,197 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.0% 2,267 Novozymes A/S 'B' 63,069 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.2% 14,837 Danske Bank 288,939 ------------------------------------------------------------------------------------------------------------------ Commercial Services & 2,132 Group 4 Falck A/S 35,423 Supplies--0.0% 527 ISS A/S 18,815 ----------- 54,238 ------------------------------------------------------------------------------------------------------------------ Construction & 1,417 FLS Industries A/S 'B' (a) 11,826 Engineering--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified 3,905 TDC A/S 116,786 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.0% 820 NKT Holding A/S 11,343 3,906 Vestas Wind Systems A/S 44,674 ----------- 56,017 ------------------------------------------------------------------------------------------------------------------ Food Products--0.1% 555 A/S Det Ostasiatiske Kompagni 15,183 2,482 Danisco A/S 97,245 ----------- 112,428 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 93 Coloplast A/S 'B' 7,187 Supplies--0.0% 1,530 William Demant A/S (a) 34,998 ----------- 42,185 ------------------------------------------------------------------------------------------------------------------ Household Durables--0.0% 464 Bang & Olufsen Holding A/S 'B' 12,622 ------------------------------------------------------------------------------------------------------------------ Insurance--0.0% 907 Topdanmark A/S (a) 33,153 ------------------------------------------------------------------------------------------------------------------ Marine--0.2% 47 A/S Dampskibsselskabet Svendborg 'B' 254,246 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--0.2% 502 H. Lundbeck A/S 10,164 10,122 Novo Nordisk A/S 'B' 354,343 ----------- 364,507 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Denmark (Cost--$1,300,341)--0.8% 1,420,213 ===================================================================================================================================
14 & 15 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Finland Communications 1,270 Nokia Oyj 'A' (ADR) (b) $ 20,866 Equipment--1.3% 134,008 Nokia Oyj (Series A) 2,206,754 ----------- 2,227,620 ------------------------------------------------------------------------------------------------------------------ Diversified 4,700 HPY Holding--HTF Holding Oyj Abp (a) 40,371 Telecommunication 36,201 TeliaSonera AB 148,826 Services--0.1% ----------- 189,197 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 3,019 Instrumentarium Corporation 114,753 Supplies--0.1% ------------------------------------------------------------------------------------------------------------------ IT Services--0.0% 3,005 Tietoenator Oyj 50,589 ------------------------------------------------------------------------------------------------------------------ Insurance--0.1% 2,198 Pohjola Group PLC 'D' 37,634 11,884 Sampo Insurance Company Ltd. 'A' 87,204 ----------- 124,838 ------------------------------------------------------------------------------------------------------------------ Leisure Equipment & 1,968 Amer Group Ltd. 60,160 Products--0.0% ------------------------------------------------------------------------------------------------------------------ Machinery--0.0% 201 Kone Corporation 'B' 8,425 4,366 Metso Oyj 38,856 154 Wartsila Oyj 'B' 1,913 ----------- 49,194 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.0% 447 Outokumpu Oyj 3,927 3,289 Rautaruukki Oyj (a) 14,163 ----------- 18,090 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--0.1% 10,540 Fortum Corporation, the IVO-Neste Group 84,483 ------------------------------------------------------------------------------------------------------------------ Paper & Forest 22,459 Stora Enso Oyj 'R' 250,944 Products--0.2% 14,736 UPM-Kymmene Oyj 215,080 ----------- 466,024 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Finland (Cost--$3,550,276)--1.9% 3,384,948 =================================================================================================================================== France Aerospace & Defense--0.1% 4,658 European Aeronautic Defense and Space Company 57,127 5,228 Thomson CSF 155,192 ----------- 212,319 ------------------------------------------------------------------------------------------------------------------ Auto Components--0.2% 3,065 Compagnie Generale des Etablissements Michelin 'B' 119,670 3,198 Valeo SA 110,907 ----------- 230,577 ------------------------------------------------------------------------------------------------------------------ Automobiles--0.3% 6,516 PSA Peugeot Citroen 316,516 5,151 Renault SA 272,333 ----------- 588,849 ------------------------------------------------------------------------------------------------------------------ Beverages--0.1% 2,180 Pernod Ricard 194,514 ------------------------------------------------------------------------------------------------------------------ Building Products--0.2% 7,976 Compagnie de Saint-Gobain 313,887 5,015 Lafarge SA (Rights) (e) 13,534 ----------- 327,421 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.2% 2,984 Air Liquide 442,384 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--1.1% 24,727 BNP Paribas SA 1,256,489 10,307 Credit Agricole S.A. 195,886 7,748 Societe Generale 'A' 491,137 ----------- 1,943,512 ------------------------------------------------------------------------------------------------------------------ Commercial Services & 1,954 Societe BIC SA 76,067 Supplies--0.0% ------------------------------------------------------------------------------------------------------------------ Communications 38,404 Alcatel (a) 346,195 Equipment--0.2% 550 Sagem SA (New Shares) 44,211 ----------- 390,406 ------------------------------------------------------------------------------------------------------------------ Construction & 1,886 Societe Generale d'Entreprises SA 127,240 Engineering--0.1% ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.2% 298 Imetal SA 43,392 5,016 Lafarge SA (Ordinary) 293,751 ----------- 337,143 ------------------------------------------------------------------------------------------------------------------ Diversified 22,097 France Telecom SA (a) 542,012 Telecommunication Services--0.3% ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.2% 13,495 Alstom (a) 46,491 5,791 Schneider SA 272,255 ----------- 318,746 ------------------------------------------------------------------------------------------------------------------ Energy Equipment & 733 Compagnie Francaise d'Etudes et de Construction Service--0.0% (Technip SA) 64,141 ------------------------------------------------------------------------------------------------------------------ Food & Staples 16,918 Carrefour SA 829,178 Retailing--0.5% 1,789 Etablissements Economiques du Casino Guichard-Perrachon SA 139,699 ----------- 968,877 ------------------------------------------------------------------------------------------------------------------ Food Products--0.3% 3,584 Groupe Danone 495,940 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 2,316 Essilor International SA 93,298 Supplies--0.1% ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 5,124 Accor SA 185,351 Leisure--0.2% 3,743 Sodexho Alliance SA 101,009 ----------- 286,360 ------------------------------------------------------------------------------------------------------------------
16 & 17 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== France Household Durables--0.1% 6,869 Thomson Multimedia $ 105,936 (concluded) ------------------------------------------------------------------------------------------------------------------ IT Services--0.0% 2,001 Cap Gemini SA (a) 71,049 ------------------------------------------------------------------------------------------------------------------ Insurance--0.3% 41,163 Axa638,611 Internet Software & 12,500 Wanadoo (a) 83,686 ------------------------------------------------------------------------------------------------------------------ Services--0.1% ------------------------------------------------------------------------------------------------------------------ Media--0.5% 3,917 Lagardere S.C.A. 170,253 3,608 Publicis SA 96,828 5,565 Societe Television Francaise 1 171,267 18,089 Vivendi Universal SA (a) 329,244 6,053 Vivendi Universal SA (ADR) (a)(b) 111,617 ----------- 879,209 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.1% 10,996 Arcelor 128,040 1,951 Pechiney SA 'A' 70,036 ----------- 198,076 ------------------------------------------------------------------------------------------------------------------ Multi-Utilities & 24,765 Suez SA 394,163 Unregulated Power--0.3% 6,928 Vivendi Environment 142,408 ----------- 536,571 ------------------------------------------------------------------------------------------------------------------ Multiline Retail--0.1% 2,228 Pinault-Printemps-Redoute SA 167,839 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--1.6% 18,208 TotalFinaElf SA 2,751,644 939 TotalFinaElf SA 'B' 142,120 4,140 TotalFinaElf SA 'STRIP' (a) 48 ----------- 2,893,812 ------------------------------------------------------------------------------------------------------------------ Personal Products--0.4% 10,798 L'Oreal SA 761,353 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--1.0% 20,554 Aventis SA 1,130,828 11,420 Sanofi-Synthelabo SA 668,822 ----------- 1,799,650 ------------------------------------------------------------------------------------------------------------------ Real Estate--0.1% 2,142 Klepierre 105,770 113 Unibail (Union du Credit-Bail Immobilier) 8,370 ----------- 114,140 ------------------------------------------------------------------------------------------------------------------ Semiconductors & 17,662 STMicroelectronics NV 370,352 Semiconductor Equipment--0.2% ------------------------------------------------------------------------------------------------------------------ Software--0.0% 718 Business Objects SA (a) 16,012 1,856 Dassault Systemes SA 60,956 ----------- 76,968 ------------------------------------------------------------------------------------------------------------------ Textiles, Apparel & 6,541 LVMH (Louis Vuitton Moet Hennessy) 324,415 Luxury Goods--0.2% ------------------------------------------------------------------------------------------------------------------ Wireless 6,902 Bouygues SA 190,539 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in France (Cost--$16,036,544)--9.4% 16,852,012 =================================================================================================================================== Germany Air Freight & Logistics--0.1% 16,358 Deutsche Post AG (Registered Shares) 240,256 ------------------------------------------------------------------------------------------------------------------ Airlines--0.0% 5,765 Deutsche Lufthansa AG (Registered Shares) 67,526 ------------------------------------------------------------------------------------------------------------------ Auto Components--0.1% 4,191 Continental AG 87,977 ------------------------------------------------------------------------------------------------------------------ Automobiles--0.6% 25,764 DaimlerChrysler AG 899,417 5,122 Volkswagen AG 216,511 ----------- 1,115,928 ------------------------------------------------------------------------------------------------------------------ Biotechnology--0.0% 4,938 QIAGEN NV (a) 41,679 ------------------------------------------------------------------------------------------------------------------ Building Products--0.0% 2,231 Buderus AG 74,297 ------------------------------------------------------------------------------------------------------------------ Capital Markets--0.6% 16,030 Deutsche Bank AG (Registered Shares) 1,039,686 3,609 Marschollek, Lautenschlaeger und Partner AG (a) 53,877 ----------- 1,093,563 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.8% 15,058 BASF AG 643,257 22,263 Bayer AG 515,916 3,341 Linde AG 123,693 ----------- 1,282,866 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.2% 13,994 Bayerische Hypo- und Vereinsbank AG (a) 231,247 8,210 Commerzbank AG 114,832 ----------- 346,079 ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.0% 51 Heidelberger Zement AG (a) 1,136 1,346 Heidelberger Zement AG (a) 15 1,778 Heidelberger Zement AG 39,711 ----------- 40,862 ------------------------------------------------------------------------------------------------------------------ Diversified Financial 1,833 Deutsche Boerse AG 97,100 Services--0.1% ------------------------------------------------------------------------------------------------------------------ Diversified 58,330 Deutsche Telekom AG (Registered Shares) (a) 890,207 Telecommunication Services--0.5% ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.5% 16,212 E.On AG 833,485 ------------------------------------------------------------------------------------------------------------------ Electronic Equipment & 2,386 Epcos AG (a) 30,742 Instruments--0.0% ------------------------------------------------------------------------------------------------------------------ Food & Staples 1,160 Douglas Holding AG 25,043 Retailing--0.1% 1,873 Metro AG 60,547 ----------- 85,590 ------------------------------------------------------------------------------------------------------------------ Health Care Providers & 1,880 Fresenius Medical Care AG 93,048 Services--0.1% 1,654 Gehe AG 64,996 ----------- 158,044 ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 4,174 Preussag AG 62,072 Leisure--0.0% ------------------------------------------------------------------------------------------------------------------
18 & 19 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Germany Industrial 22,354 Siemens AG $ 1,096,631 (concluded) Conglomerates--0.6% 860 Siemens AG (ADR) (b) 42,011 ----------- 1,138,642 ------------------------------------------------------------------------------------------------------------------ Insurance--0.5% 7,265 Allianz AG (Registered Shares) 603,849 3,140 Muenchener Rueckversicherungs-Gesellschaft AG (Registered Shares) 320,124 ----------- 923,973 ------------------------------------------------------------------------------------------------------------------ Machinery--0.0% 3,990 MAN AG 67,446 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.1% 9,157 Thyssen Krupp AG 105,575 ------------------------------------------------------------------------------------------------------------------ Multi-Utilities & 11,991 RWE AG 362,010 Unregulated Power--0.2% ------------------------------------------------------------------------------------------------------------------ Multiline Retail--0.0% 1,640 Karstadt AG 35,105 ------------------------------------------------------------------------------------------------------------------ Personal Products--0.1% 1,419 Beiersdorf AG 189,675 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--0.2% 977 Altana AG 61,639 2,378 Merck KGaA 69,089 4,520 Schering AG 221,013 ----------- 351,741 ------------------------------------------------------------------------------------------------------------------ Semiconductors & 10,701 Infineon Technologies AG (a) 103,469 Semiconductor Equipment--0.1% ------------------------------------------------------------------------------------------------------------------ Software--0.4% 6,154 SAP AG (Systeme, Anwendungen, Produkte in der Datenverarbeitung) 725,775 ------------------------------------------------------------------------------------------------------------------ Textiles, Apparel & 1,302 Adidas-Salomon AG 111,344 Luxury Goods--0.1% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Germany (Cost--$12,011,917)--6.0% 10,663,028 =================================================================================================================================== Greece Beverages--0.1% 3,612 Hellenic Bottling Co. 59,646 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.2% 7,965 Alpha Credit Bank 138,845 1,959 Bank of Piraeus 14,892 1,938 Commercial Bank of Greece 33,872 4,179 EFG Eurobank Ergasias 62,962 4,068 National Bank of Greece SA 68,761 ----------- 319,332 ------------------------------------------------------------------------------------------------------------------ Communications 8,070 Intracom SA 53,564 Equipment--0.0% ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.0% 1,341 Titan Cement Company 48,508 ------------------------------------------------------------------------------------------------------------------ Diversified 14,796 Hellenic Telecommunications Organization SA (OTE) 174,667 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 2,510 Greek Organization of Football Prognostics 25,595 Leisure--0.0% ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.0% 4,057 Viohalco, Hellenic Copper and Aluminum Industry SA 20,219 ------------------------------------------------------------------------------------------------------------------ Wireless 4,650 Panafon Hellenic Telecom Co. 30,971 Telecommunication Services--0.0% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Greece (Cost--$809,855)--0.4% 732,502 =================================================================================================================================== Hong Kong Airlines--0.0% 51,263 Cathay Pacific Airways 69,024 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.3% 91,000 BOC Hong Kong (Holdings) Limited 91,605 34,339 Bank of East Asia, Ltd. 67,814 28,153 Hang Seng Bank Limited 297,843 ----------- 457,262 ------------------------------------------------------------------------------------------------------------------ Distributors--0.0% 56,719 Li & Fung Limited 73,098 ------------------------------------------------------------------------------------------------------------------ Diversified Financial 42,000 Hong Kong Exchanges & Clearing Ltd. 60,322 Services--0.2% 41,077 Swire Pacific Limited 'A' 179,623 36,107 Wharf (Holdings) Ltd. 69,453 ----------- 309,398 ------------------------------------------------------------------------------------------------------------------ Diversified 34,195 PCCW Limited (a) 21,158 Telecommunication Services--0.0% ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.3% 67,187 CLP Holdings Limited 293,797 55,500 Hongkong Electric Holdings Limited 217,782 ----------- 511,579 ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.1% 5,004 ASM Pacific Technology Limited 14,631 52,828 Johnson Electric Holdings Limited 65,373 ----------- 80,004 ------------------------------------------------------------------------------------------------------------------ Gas Utilities--0.1% 102,240 Hong Kong and China Gas Company Ltd. 129,141 ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 24,734 Shangri-La Asia Limited 15,700 Leisure--0.0% ------------------------------------------------------------------------------------------------------------------ Industrial 64,989 Hutchison Whampoa Limited 395,860 Conglomerates--0.2% ------------------------------------------------------------------------------------------------------------------ Media--0.0% 34,025 South China Morning Post Holdings Ltd. 13,417 5,646 Television Broadcasts Ltd. 20,236 ----------- 33,653 ------------------------------------------------------------------------------------------------------------------ Real Estate--0.3% 38,735 Cheung Kong (Holdings) Ltd. 232,962 28,491 Henderson Land Development Company Limited 81,840 57,637 New World Development Company Ltd. 22,358 48,421 Sino Land Company Limited 15,058 42,324 Sun Hung Kai Properties Ltd. 213,841 ----------- 566,059 ------------------------------------------------------------------------------------------------------------------ Specialty Retail--0.0% 16,000 Esprit Holdings Limited 39,086 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Hong Kong (Cost--$3,498,502)--1.5% 2,701,022 ===================================================================================================================================
20 & 21 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Ireland Airlines--.01% 27,680 Ryanair Holdings PLC (a) $ 199,300 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.5% 32,040 Allied Irish Banks PLC 486,405 26,151 Bank of Ireland 315,620 ----------- 802,025 ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.1% 936 CRH PLC 14,736 14,200 CRH PLC 221,769 ----------- 236,505 ------------------------------------------------------------------------------------------------------------------ Food Products--0.1% 16,409 Greencore Group PLC 54,645 4,710 Kerry Group PLC 'A' 72,801 ----------- 127,446 ------------------------------------------------------------------------------------------------------------------ Household Durables--0.0% 25,516 Waterford Wedgwood PLC 7,032 Industrial 3,189 DCC PLC 42,846 ------------------------------------------------------------------------------------------------------------------ Conglomerates--0.0% ------------------------------------------------------------------------------------------------------------------ Insurance--0.1% 11,194 Irish Life & Permanent PLC 121,733 ------------------------------------------------------------------------------------------------------------------ Media--0.0% 21,817 Independent News & Media PLC 38,833 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--0.0% 4,431 Elan Corporation PLC (a) 22,898 5,755 Elan Corporation PLC (ADR) (a)(b) 32,458 ----------- 55,356 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Ireland (Cost--$1,757,813)--0.9% 1,631,076 =================================================================================================================================== Italy Aerospace & Defense--0.0% 97,905 Finmeccanica SpA 62,735 ------------------------------------------------------------------------------------------------------------------ Automobiles--0.0% 5,647 Fiat SpA (a) 41,061 ------------------------------------------------------------------------------------------------------------------ Capital Markets--0.2% 1,700 Banca Fideuram SpA 9,285 20,672 Mediobanca SpA 206,289 10,572 Mediolanum SpA 59,075 ----------- 274,649 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.9% 13,658 Banca Intesa SpA 31,400 80,547 Banca Nazionale del Lavoro (Ordinary) (a) 135,229 13,422 Banca Popolare di Milano (BPM) 58,801 81,420 Banca di Roma SpA (a) 143,520 7,339 Banca Popolare di Verona e Novara Scrl 100,290 117,406 Intesa BCI SpA 375,482 21,941 San Paolo-IMI SpA 203,911 96,070 Unicredito Italiano SpA 457,836 ----------- 1,506,469 ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.0% 5,565 Italcementi SpA 63,164 ------------------------------------------------------------------------------------------------------------------ Diversified Financial 48,440 Fineco Group SpA (a) 26,011 Services--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified 69,689 Telecom Italia SpA 630,855 Telecommunication 55,725 Telecom Italia SpA (Registered Shares) 305,241 Services--0.5% ----------- 936,096 ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.3% 71,623 Enel SpA 446,937 ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.1% 74,074 Pirelli SpA (a) 75,025 ------------------------------------------------------------------------------------------------------------------ Food Products--0.0% 22,512 Parmalat Finanziaria SpA 70,808 ------------------------------------------------------------------------------------------------------------------ Gas Utilities--0.0% 11,664 Snam Rete Gas SpA 45,809 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 26,845 Snia SpA 52,715 Supplies--0.0% ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 4,473 Autogrill SpA (a) 48,797 Leisure--0.0% ------------------------------------------------------------------------------------------------------------------ Insurance--0.6% 13,965 Alleanza Assicurazioni 132,784 28,636 Assicurazioni Generali 663,602 13,239 Riunione Adriatica di Sicurta SpA 200,832 ----------- 997,218 ------------------------------------------------------------------------------------------------------------------ Internet Software & 9,266 Tiscali SpA (a) 47,446 Services--0.0% ------------------------------------------------------------------------------------------------------------------ Media--0.2% 15,754 Gruppo Editoriale L'Espresso SpA 62,450 11,887 Mediaset SpA 100,604 5,198 Mondadori (Arnoldo) Editore SpA 37,725 104,262 Seat Pagine Gialle SpA (a) 72,436 ----------- 273,215 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--0.6% 62,764 ENI SpA 949,372 1,875 ENI SpA (ADR) (b) 142,575 ----------- 1,091,947 ------------------------------------------------------------------------------------------------------------------ Textiles, Apparel & 5,296 Benetton Group SpA 54,978 Luxury Goods--0.1% 4,032 Bulgari SpA 22,368 1,412 Luxottica Group SpA 19,333 ----------- 96,679 ------------------------------------------------------------------------------------------------------------------ Wireless 115,617 Telecom Italia Mobile (TIM) SpA 569,711 Telecommunication Services--0.3% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Italy (Cost--$6,623,487)--3.8% 6,726,492 ===================================================================================================================================
22 & 23 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Japan Air Freight & Logistics--0.1% 19,000 Yamato Transport Co., Ltd. $ 210,294 ------------------------------------------------------------------------------------------------------------------ Airlines--0.0% 28,000 Japan Airlines System Corporation 61,095 ------------------------------------------------------------------------------------------------------------------ Auto Components--0.4% 17,000 Bridgestone Corp. 230,772 17,600 Denso Corporation 278,932 9,000 NGK Spark Plug Co., Ltd. 63,111 20,000 Sanden Corporation 95,107 ----------- 667,922 ------------------------------------------------------------------------------------------------------------------ Automobiles--2.0% 22,400 Honda Motor Co., Ltd. 848,803 71,000 Nissan Motor Co., Ltd. 678,809 81,300 Toyota Motor Corporation 2,105,709 ----------- 3,633,321 ------------------------------------------------------------------------------------------------------------------ Beverages--0.3% 20,000 Asahi Breweries Limited 120,758 23,000 Kirin Brewery Company, Ltd. 161,666 43,000 Sapporo Breweries Limited 106,000 8,000 Takara Shuzo Co., Ltd. 43,173 ----------- 431,597 ------------------------------------------------------------------------------------------------------------------ Building Products--0.4% 15,000 Asahi Glass Company, Limited 93,067 8,000 Daikin Industries, Ltd. 146,908 23,000 Nippon Sheet Glass Company, Ltd. 68,957 9,000 Tostem Corporation 129,669 16,000 Toto Limited 95,007 ----------- 533,608 ------------------------------------------------------------------------------------------------------------------ Capital Markets--0.6% 39,000 Daiwa Securities Group Inc. 224,110 28,000 The Nikko Securities Co., Ltd. 112,396 53,000 The Nomura Securities Co., Ltd. 672,680 ----------- 1,009,186 ------------------------------------------------------------------------------------------------------------------ Chemicals--1.0% 43,000 Asahi Chemical Industry Co., Ltd. 122,832 3,000 Daicel Chemical Industries, Ltd. 9,519 30,000 Dainippon Ink and Chemicals, Inc. 60,712 3,000 Denki Kagaku Kogyo Kabushiki Kaisha 8,320 11,000 Ishihara Sangyo Kaisha, Ltd. 18,597 13,000 Kaneka Corporation 80,117 8,000 Kuraray Co., Ltd. 52,501 45,000 Mitsubishi Chemical Corporation 91,818 18,000 Mitsubishi Gas Chemical Company, Inc. 38,076 5,000 Mitsui Chemicals Inc. 23,111 16,000 Nissan Chemical Industries, Ltd. 85,547 5,800 Nitto Denko Corporation 189,831 10,600 Shin-Etsu Chemical Co., Ltd. 361,940 58,000 Showa Denko K.K. (a) 100,954 32,000 Sumitomo Chemical Co., Ltd. 100,471 22,000 Teijin Limited 54,966 37,000 Toray Industries, Inc. 85,971 3,000 Tosoh Corporation 6,696 13,000 Ube Industries, Ltd. 19,163 ----------- 1,511,142 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.9% 12,000 The 77 Bank, Ltd. 54,466 5,000 The Bank of Fukuoka, Ltd. 19,196 26,000 The Bank of Yokohama, Ltd. 84,880 2,000 The Chiba Bank, Ltd. 7,096 152,000 Daiwa Bank Holdings, Inc. (a) 105,068 13,000 The Gunma Bank Ltd. 59,113 5,000 The Hokuriku Bank, Ltd. 7,662 23,000 The Joyo Bank, Ltd. 64,168 104 Mitsubishi Tokyo Financial Group, Inc. 470,306 22,000 Mitsui Trust Holdings, Inc. 48,370 130 Mizuho Financial Group, Inc. 102,744 18,000 The Shizuoka Bank, Ltd. 120,675 71 Sumitomo Mitsui Financial Group, Inc. 154,920 16,000 The Sumitomo Trust and Banking Co., Ltd. 55,299 98 UFJ Holdings, Inc. 143,644 ----------- 1,497,607 ------------------------------------------------------------------------------------------------------------------ Commercial Services & 2,000 Benesse Corporation 34,478 Supplies--0.3% 24,000 Dai Nippon Printing Co., Ltd. 253,841 5,000 Kokuyo Co., Ltd. 47,637 500 Meitec Corp. 15,199 7,500 Secom Co., Ltd. 219,863 14,000 Toppan Printing Co., Ltd. 100,271 ----------- 671,289 ------------------------------------------------------------------------------------------------------------------ Computers & 40,000 Fujitsu Limited (a) 163,898 Peripherals--0.4% 6,000 Mitsumi Electric Company, Ltd. 62,011 42,000 NEC Corporation (a) 209,869 400 Oracle Corporation Japan 14,391 79,000 Toshiba Corporation 271,722 ----------- 721,891 ------------------------------------------------------------------------------------------------------------------ Construction & 15,000 JGC Corporation 100,937 Engineering--0.1% 29,000 Kajima Corporation 68,832 9,000 Kinden Corporation 30,206 15,000 Nippon COMSYS Corporation 76,452 25,000 Obayashi Corporation 76,619 16,000 Shimizu Corporation 44,372 27,000 Taisei Corporation 53,067 3,000 Toda Corporation 6,446 ----------- 456,931 ------------------------------------------------------------------------------------------------------------------
24 & 25 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Japan Construction Materials--0.0% 2,000 Sumitomo Osaka Cement Co., Ltd. $ 3,931 (continued) 10,000 Taiheiyo Cement Corporation 17,156 ----------- 21,087 ------------------------------------------------------------------------------------------------------------------ Consumer Finance--0.4% 2,100 Acom Co., Ltd. 75,903 650 Aiful Corporation 27,716 6,500 Credit Saison Co., Ltd. 106,588 3,200 Orix Corporation 176,956 2,200 Promise Co., Ltd. 82,265 3,020 Takefuji Corporation 156,690 ----------- 626,118 ------------------------------------------------------------------------------------------------------------------ Containers & 5,000 Toyo Seikan Kaisha, Ltd. 46,762 Packaging--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified 163 Nippon Telegraph & Telephone Corporation (NTT) 639,375 Telecommunication Services--0.4% ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.9% 22,000 Chubu Electric Power Company, Incorporated 401,249 23,500 Kansai Electric Power Company, Inc. 370,677 7,100 Kyushu Electric Power Company, Incorporated 110,513 16,900 Tohoku Electric Power Co., Inc. 249,964 31,900 Tokyo Electric Power 609,706 ----------- 1,742,109 ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.3% 16,000 Fujikura Ltd. (a) 52,767 35,000 The Furukawa Electric Co., Ltd. 114,262 4,000 Matsushita Electric Works, Ltd. 23,685 49,000 Mitsubishi Electric Corporation 159,151 14,000 Sumitomo Electric Industries 102,253 ----------- 452,118 ------------------------------------------------------------------------------------------------------------------ Electronic Equipment & 8,000 Alps Electric Co., Ltd. 102,469 Instruments--1.1% 8,000 Anritsu Corp. (a) 43,639 13,000 Citizen Watch Co. 69,831 8,000 Dainippon Screen Mfg. Co., Ltd. (a) 39,176 900 Hirose Electric Co., Ltd. 74,428 87,000 Hitachi Ltd. 368,795 2,400 Hoya Corporation 165,297 1,300 Keyence Corporation 238,184 4,200 Kyocera Corporation 240,300 200 Mabuchi Motor Co., Ltd. 15,290 6,800 Murata Manufacturing Co., Ltd. 267,300 1,800 Nidec Corporation 118,876 8,000 Omron Corporation 134,916 2,100 TDK Corporation 103,710 6,000 Taiyo Yuden Co., Ltd. 58,463 8,000 Yokogawa Electric Corporation 61,761 ----------- 2,102,435 ------------------------------------------------------------------------------------------------------------------ Food & Staples 9,000 Ito-Yokado Co., Ltd. 215,490 Retailing--0.3% 9,000 JUSCO Co., Ltd. 206,121 2,000 Keio Electric Railway Co., Ltd. 9,128 1,000 Lawson Inc. 27,483 10,000 Seven-Eleven Japan Co., Ltd. 249,011 4,000 Uny Co., Ltd. 34,445 ----------- 741,678 ------------------------------------------------------------------------------------------------------------------ Food Products--0.2% 22,000 Ajinomoto Co., Inc. 210,702 1,000 Nichirei Corporation 3,489 10,000 Nippon Meat Packers, Inc. 94,441 2,800 Nissin Food Products Co., Ltd. 58,413 500 Snow Brand Milk Products Co., Ltd. (a) 1,253 2,000 Yakult Honsha Co., Ltd. 26,817 7,000 Yamazaki Baking Co., Ltd. 44,597 ----------- 439,712 ------------------------------------------------------------------------------------------------------------------ Gas Utilities--0.2% 54,000 Osaka Gas Co. 133,567 56,000 Tokyo Gas Co. 160,899 ----------- 294,466 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 9,000 Olympus Optical Co., Ltd. 186,259 Supplies--0.2% 7,600 Terumo Corporation 126,271 ----------- 312,530 ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 1,700 Oriental Land Co., Ltd 74,470 Leisure--0.0% 2,000 Skylark Co., Ltd. 23,735 ----------- 98,205 ------------------------------------------------------------------------------------------------------------------ Household Durables--1.4% 11,000 Casio Computer Co., Ltd. 70,264 2,000 Daito Trust Construction Co., Ltd. 42,057 15,000 Daiwa House Industry Co., Ltd. 103,186 60,000 Matsushita Electric Industrial Company, Ltd. 594,129 6,800 Pioneer Corporation 152,904 56,000 Sanyo Electric Co., Ltd. 191,680 25,000 Sekisui Chemical Co., Ltd. 84,531 12,000 Sekisui House, Ltd. 90,943 32,000 Sharp Corporation 410,677 23,700 Sony Corporation 667,133 ----------- 2,407,504 ------------------------------------------------------------------------------------------------------------------ Household Products--0.2% 17,000 Kao Corporation 316,427 400 Uni-Charm Corporation 17,289 ----------- 333,716 ------------------------------------------------------------------------------------------------------------------
26 & 27 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Japan IT Services--0.2% 3,200 CSK Corporation $ 87,146 (continued) 30 NTT Data Corporation 92,442 400 Toyo Information Systems Co., Ltd. 7,662 ----------- 187,250 ------------------------------------------------------------------------------------------------------------------ Insurance--0.4% 44 Millea Holdings, Inc. 336,390 38,000 Mitsui Marine and Fire Insurance Company, Ltd. 176,273 17,000 The Yasuda Fire & Marine Insurance Co. Ltd. 92,734 ----------- 605,397 ------------------------------------------------------------------------------------------------------------------ Internet Software & 10,100 Softbank Corp. 191,360 Services--0.1% ------------------------------------------------------------------------------------------------------------------ Leisure Equipment & 11,000 Fuji Photo Film 317,885 Products--0.4% 16,000 Konica Corporation 182,153 3,500 Shimano Inc. 55,032 6,000 Yamaha Corporation 82,249 ----------- 637,319 ------------------------------------------------------------------------------------------------------------------ Machinery--0.6% 5,000 Amada Co., Ltd. 16,073 13,000 Ebara Corporation 45,688 2,100 Fanuc Ltd. 104,060 27,000 Ishikawajima-Harima Heavy Industries Co., Ltd. 30,356 61,000 Kawasaki Heavy Industries Ltd. 62,486 25,000 Komatsu Ltd. 95,773 12,000 Koyo Seiko Co. 85,846 39,000 Kubota Corporation 105,884 3,000 Kurita Water Industries Ltd. 33,204 17,000 Minebea Company Ltd. 67,391 72,000 Mitsubishi Heavy Industries, Ltd. 186,483 15,000 Mitsui Engineering & Shipbuilding Co., Ltd. 18,863 13,000 NGK Insulators, Ltd. 72,105 14,000 NSK Limited 44,539 3,000 NTN Corporation 11,093 2,200 SMC Corporation 185,234 30,000 Sumitomo Heavy Industries, Ltd. (a) 44,472 8,000 Takuma Co., Ltd. 38,909 ----------- 1,248,459 ------------------------------------------------------------------------------------------------------------------ Marine--0.1% 2,000 Kawasaki Kisen Kaisha, Ltd. 4,830 46,000 Nippon Yusen Kabushiki Kaisha 179,288 ----------- 184,118 ------------------------------------------------------------------------------------------------------------------ Media--0.0% 600 Asatsu-Dk Inc. 10,743 9 Dentsu Inc. 28,032 13 Fuji Television Network, Incorporated 45,905 5,000 Toho Co., Ltd. 43,889 4,000 Tokyo Broadcasting System, Inc. 48,736 ----------- 177,305 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.3% 4,000 Dowa Mining Co., Ltd. 15,357 9,100 JFE Holdings, Inc. 136,415 35,000 Mitsubishi Materials Corporation 44,889 20,000 Mitsui Mining & Smelting Co., Ltd. 59,130 198,000 Nippon Steel Corporation 272,080 107,000 Sumitomo Metal Industries, Ltd. 73,962 19,000 Sumitomo Metal Mining Co. 72,788 ----------- 674,621 ------------------------------------------------------------------------------------------------------------------ Multiline Retail--0.1% 9,000 The Daimaru, Inc. 36,127 6,000 Hankyu Department Stores, Inc. 34,928 8,000 Isetan Company Ltd. 53,900 6,000 Marui Co., Ltd. 53,317 16,000 Mitsukoshi, Ltd. 42,107 19,000 Takashimaya Co., Ltd. 94,466 ----------- 314,845 ------------------------------------------------------------------------------------------------------------------ Office Electronics--0.8% 23,000 Canon, Inc. 1,055,424 21,000 Ricoh Co., Ltd. 343,136 ----------- 1,398,560 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--0.1% 33,500 Nippon Mining Holdings, Inc. 72,538 54,000 Nippon Mitsubishi Oil Corp. 234,304 6,000 Showa Shell Sekiyu K.K. 43,073 ----------- 349,915 ------------------------------------------------------------------------------------------------------------------ Paper & Forest 22 Nippon Unipac Holding 85,930 Products--0.2% 27,000 Oji Paper Co., Ltd. 118,051 ----------- 203,981 ------------------------------------------------------------------------------------------------------------------ Personal Products--0.1% 7,000 Kanebo, Ltd. (a) 8,278 15,000 Shiseido Company, Limited 145,784 ----------- 154,062 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--1.2% 8,900 Chugai Pharmaceutical Co., Ltd. 101,100 8,000 Daiichi Pharmaceutical Co., Ltd. 104,202 6,000 Eisai Company, Ltd. 123,423 10,000 Fujisawa Pharmaceutical Co., Ltd. 187,383 8,000 Kaken Pharmaceutical Co., Ltd. 42,907 7,000 Kyowa Hakko Kogyo Co., Ltd. 37,776 13,000 Sankyo Company, Ltd. 155,253 8,000 Shionogi & Co., Ltd. 108,399 4,000 Taisho Pharmaceutical Company, Ltd. 57,764 23,000 Takeda Chemical Industries, Ltd. 848,553 6,000 Yamanouchi Pharmaceutical Co., Ltd. 156,402 ----------- 1,923,162 ------------------------------------------------------------------------------------------------------------------
28 & 29 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Japan Real Estate--0.4% 21 Japan Real Estate Investment Corporation $ 113,329 (concluded) 19,000 Mitsubishi Estate Company, Limited 128,645 23,000 Mitsui Fudosan Co., Ltd. 146,917 22 Office Building Fund of Japan Incorporated 120,375 17,000 Sumitomo Realty & Development Co., Ltd. 75,603 ----------- 584,869 ------------------------------------------------------------------------------------------------------------------ Road & Rail--0.7% 31 Central Japan Railway Company 222,028 92 East Japan Railway Company 409,144 15,000 Keihin Electric Express Railway Co., Ltd. 73,329 39,000 Kinki Nippon Railway Co., Ltd. 101,337 37,000 Nippon Express Co., Ltd. 143,594 13,000 Seino Transportation Co., Ltd. 74,379 6,000 Tobu Railway Co., Ltd. 17,039 33,000 Tokyu Corporation 106,359 46 West Japan Railway Company 174,308 ----------- 1,321,517 ------------------------------------------------------------------------------------------------------------------ Semiconductors & 2,000 Advantest Corporation 88,611 Semiconductor 10,000 Nikon Corporation 82,365 Equipment--0.5% 2,800 Rohm Company Ltd. 305,243 4,400 Tokyo Electron Limited 208,503 ----------- 684,722 ------------------------------------------------------------------------------------------------------------------ Software--0.1% 2,600 Konami Co., Ltd. 46,554 3,100 Namco Ltd. 49,466 2,600 Nintendo Company Ltd. 189,032 4,800 Sega Enterprises Ltd. (a) 34,099 4,000 Trend Micro Incorporated (a) 62,128 ----------- 381,279 ------------------------------------------------------------------------------------------------------------------ Specialty Retail--0.0% 2,800 Aoyamma Trading Co., Ltd. 37,310 1,300 Autobacs Seven Co., Ltd. 24,306 1,000 Fast Retailing Co., Ltd. 30,897 600 Shimamura Co., Ltd. 33,129 600 Yamada Denki Co. Ltd. 13,242 ----------- 138,884 ------------------------------------------------------------------------------------------------------------------ Textiles, Apparel & 1,000 Nisshinbo Industries Inc. 4,580 Luxury Goods--0.0% 4,000 Onward Kashiyama Co., Ltd. 32,313 2,000 Toyobo Co., Ltd. 3,481 5,000 Wacoal Corp. 38,934 1,600 World Co., Ltd. 30,314 ----------- 109,622 ------------------------------------------------------------------------------------------------------------------ Tobacco--0.1% 25 Japan Tobacco, Inc. 135,124 ------------------------------------------------------------------------------------------------------------------ Trading Companies & 35,000 ITOCHU Corporation 88,028 Distributors--0.5% 61,000 Marubeni Corporation 79,250 22,000 Mitsubishi Corporation 152,621 47,000 Mitsui & Co., Ltd. 235,636 21,000 Sumitomo Corporation 96,889 ----------- 652,424 ------------------------------------------------------------------------------------------------------------------ Transportation 8,000 Mitsubishi Logistics Corp. 48,370 Infrastructure--0.0% ------------------------------------------------------------------------------------------------------------------ Wireless 489 NTT DoCoMo, Inc. 1,058,838 Telecommunication Services--0.6% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Japan (Cost--$39,717,175)--19.6% 35,029,701 =================================================================================================================================== Netherlands Air Freight & Logistics--0.1% 10,581 TNT Post Group NV 183,718 ------------------------------------------------------------------------------------------------------------------ Beverages--0.1% 6,000 Heineken NV 212,904 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.2% 8,649 Akzo Nobel NV 229,232 1,361 DSM NV 57,390 ----------- 286,622 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.5% 46,408 ABN AMRO Holding NV 887,322 ------------------------------------------------------------------------------------------------------------------ Commercial Services & 7,896 Vedior NV 'A' 71,545 Supplies--0.1% ------------------------------------------------------------------------------------------------------------------ Diversified Financial 49,607 ING Groep NV 861,898 Services--0.5% ------------------------------------------------------------------------------------------------------------------ Diversified 52,705 KPN NV (a) 373,432 Telecommunication Services--0.2% ------------------------------------------------------------------------------------------------------------------ Energy Equipment & 926 IHC Caland NV 47,278 Service--0.0% ------------------------------------------------------------------------------------------------------------------ Food & Staples 17,283 Koninklijke Ahold NV 143,493 Retailing--0.1% ------------------------------------------------------------------------------------------------------------------ Food Products--0.6% 7,546 Koninklijke Numico NV 116,117 16,207 Unilever NV 'A' 869,520 ----------- 985,637 ------------------------------------------------------------------------------------------------------------------ Household Durables--0.4% 37,983 Koninklijke (Royal) Philips Electronics NV (a) 722,310 ------------------------------------------------------------------------------------------------------------------
30 & 31 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Netherlands Insurance--0.2% 40,525 Aegon NV $ 405,801 (concluded) Media--0.3% 14,552 Elsevier NV 171,620 7,054 VNU NV 217,335 10,798 Wolters Kluwer NV 'A' 130,199 ----------- 519,154 ------------------------------------------------------------------------------------------------------------------ Office Electronics--0.0% 194 Oce NV 2,003 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--1.6% 62,651 Royal Dutch Petroleum Company 2,908,027 ------------------------------------------------------------------------------------------------------------------ Real Estate--0.0% 1,655 Corio NV 53,253 ------------------------------------------------------------------------------------------------------------------ Semiconductors & 15,150 ASM Lithography Holding NV (a) 143,877 Semiconductor Equipment--0.1% ------------------------------------------------------------------------------------------------------------------ Specialty Retail--0.0% 1,228 Vendex KBB NV 14,215 ------------------------------------------------------------------------------------------------------------------ Trading Companies & 2,945 Hagemeyer NV 11,329 Distributors--0.0% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in the Netherlands (Cost--$10,725,151)--5.0% 8,833,818 =================================================================================================================================== New Zealand Construction Materials--0.0% 20,926 Fletcher Building Limited 44,962 ------------------------------------------------------------------------------------------------------------------ Diversified 62,565 Telecom Corporation of New Zealand Limited 191,934 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.1% 31,055 Contact Energy Limited 91,815 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 1,054 Fisher & Paykel Industries Limited 7,615 Supplies--0.0% ------------------------------------------------------------------------------------------------------------------ Household Durables--0.0% 1,098 Fisher & Paykel Appliances Holdings Limited 8,775 ------------------------------------------------------------------------------------------------------------------ Multiline Retail--0.0% 16,257 The Warehouse Group Limited 49,301 ------------------------------------------------------------------------------------------------------------------ Paper & Forest 7,526 Carter Holt Harvey Limited 7,887 Products--0.0% 9,927 Fletcher Challenge Forests (a) 6,684 ----------- 14,571 ------------------------------------------------------------------------------------------------------------------ Transportation 16,200 Auckland International Airport Limited 58,139 Infrastructure--0.1% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in New Zealand (Cost--$312,613)--0.3% 467,112 =================================================================================================================================== Norway Airlines--0.0% 2,392 SAS AB (a) 12,924 ------------------------------------------------------------------------------------------------------------------ Beverages--0.0% 2,153 Orkla ASA 'A' 37,283 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.1% 22,060 DNB Holding ASA 108,796 ------------------------------------------------------------------------------------------------------------------ Communications 2,592 Tandberg ASA (a) 13,430 Equipment--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified 8,900 Telenor A/S (ADR) (b) 113,475 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Energy Equipment & 4,090 Aker Kvaerner ASA (a) 53,963 Service--0.1% 3,691 Smedvig ASA 'A' 23,470 ----------- 77,433 ------------------------------------------------------------------------------------------------------------------ Insurance--0.0% 18,604 Storebrand ASA (a) 74,742 ------------------------------------------------------------------------------------------------------------------ Machinery--0.0% 2,598 Tomra Systems ASA 11,157 ------------------------------------------------------------------------------------------------------------------ Media--0.0% 3,568 Schibsted ASA 49,429 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--0.2% 5,649 Norsk Hydro ASA 277,817 ------------------------------------------------------------------------------------------------------------------ 6,904 Statoil ASA 58,821 ----------- 336,638 ------------------------------------------------------------------------------------------------------------------ Paper & Forest 3,089 Norske Skogindustrier ASA 46,217 Products--0.0% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Norway (Cost--$978,317)--0.5% 881,524 =================================================================================================================================== Portugal Commercial Banks--0.3% 41,741 BPI-SGPS, SA (Registered Shares) 117,916 48,091 Banco Comercial Portugues, SA (BCP) (Registered Shares) 84,495 8,484 Banco Espirito Santo, SA (Registered Shares) 125,680 ----------- 328,091 ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.0% 15,305 CIMPOR--Cimentos de Portugal, SGPS, SA 58,175 ------------------------------------------------------------------------------------------------------------------ Diversified 22,054 Portugal Telecom SA (Registered Shares) 158,032 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.0% 34,389 Eletricidade de Portugal, SA (EDP) 73,452 ------------------------------------------------------------------------------------------------------------------ Food & Staples Retailing--0.0% 3,120 Jeronimo Martins SGPS, SA (a) 24,686 ------------------------------------------------------------------------------------------------------------------ Industrial Conglomerates--0.0% 2,561 Sonae, S.G.P.S., SA (a) 1,441 ------------------------------------------------------------------------------------------------------------------ Media--0.0% 2,349 PT Multimedia-Servicos de Telecomunicacoes e Multimedia, SGPS, SA (a) 41,136 ------------------------------------------------------------------------------------------------------------------ Transportation 11,704 Brisa--Auto Estradas de Portugal, SA 65,857 Infrastructure--0.0% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Portugal (Cost--$853,320)--0.4% 750,870 ===================================================================================================================================
32 & 33 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Singapore Aerospace & Defense--0.0% 56,213 Singapore Technologies Engineering Ltd. $ 55,543 ------------------------------------------------------------------------------------------------------------------ Airlines--0.1% 20,582 Singapore Airlines Limited 121,552 ------------------------------------------------------------------------------------------------------------------ Beverages--0.0% 4,263 Fraser & Neave Limited 20,819 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.4% 26,751 DBS Group Holdings Limited 156,465 32,598 Oversea-Chinese Banking Corporation Ltd. 185,111 43,204 United Overseas Bank Ltd. 304,219 ----------- 645,795 ------------------------------------------------------------------------------------------------------------------ Computers & Peripherals--0.0% 5,907 Creative Technology Limited 47,296 ------------------------------------------------------------------------------------------------------------------ Distributors--0.0% 2,461 Cycle & Carriage Ltd. 6,903 ------------------------------------------------------------------------------------------------------------------ Diversified 103,718 Singapore Telecommunications, Ltd. 88,935 Telecommunication Services--0.1% ------------------------------------------------------------------------------------------------------------------ Electronic Equipment & 11,000 Venture Manufacturing (Singapore) Ltd. 100,568 Instruments--0.1% ------------------------------------------------------------------------------------------------------------------ Hotels, Restaurants & 2,631 Overseas Union Enterprise Ltd. 10,458 Leisure--0.0% ------------------------------------------------------------------------------------------------------------------ Industrial 1,766 Haw Par Corporation Ltd. 4,352 Conglomerates--0.1% 33,914 Keppel Corporation Ltd. 94,366 24,154 Sembcorp Industries Limited 17,557 ----------- 116,275 ------------------------------------------------------------------------------------------------------------------ Marine--0.0% 18,873 Neptune Orient Lines Limited (a) 15,861 ------------------------------------------------------------------------------------------------------------------ Media--0.0% 5,792 Singapore Press Holdings Ltd. 60,189 ------------------------------------------------------------------------------------------------------------------ Real Estate--0.0% 33,833 Capitaland Limited 23,823 20,535 City Developments Limited 51,775 ----------- 75,598 ------------------------------------------------------------------------------------------------------------------ Road & Rail--0.0% 104,816 ComfortDelGro Corporation Limited (a) 47,914 ------------------------------------------------------------------------------------------------------------------ Semiconductors & 13,000 Chartered Semiconductor Manufacturing Limited (a) 6,718 Semiconductor 1,120 Chartered Semiconductor Manufacturing Equipment--0.0% Limited (ADR) (a)(b) 5,768 ----------- 12,486 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Singapore (Cost--$1,659,325)--0.8% 1,426,192 =================================================================================================================================== South Africa Beverages--0.1% 27,200 SABMiller PLC 182,117 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in South Africa (Cost--$194,019)--0.1% 182,117 =================================================================================================================================== Spain Airlines--0.0% 15,500 Iberia Lineas Aereas de Espana SA 30,081 ------------------------------------------------------------------------------------------------------------------ Biotechnology--0.0% 6,228 Zeltia, SA 42,053 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--1.3% 83,773 Banco Bilbao Vizcaya, SA 880,236 5,888 Banco Popular Espanol SA 297,505 132,471 Banco Santander Central Hispano SA 1,160,699 ----------- 2,338,440 ------------------------------------------------------------------------------------------------------------------ Construction & 1,897 ACS, Actividades de Construccion y Servicios, SA 80,928 Engineering--0.1% 2,428 Fomento de Construcciones y Contratas SA 67,837 6,180 Grupo Dragados SA 124,407 ----------- 273,172 ------------------------------------------------------------------------------------------------------------------ Diversified 138,653 Telefonica SA 1,609,736 Telecommunication 1,081 Telefonica SA (ADR) (b) 37,370 Services--0.9% ----------- 1,647,106 ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.5% 25,765 Endesa SA 431,382 20,100 Iberdrola SA 348,074 8,715 Union Electrica Fenosa, SA 147,616 ----------- 927,072 ------------------------------------------------------------------------------------------------------------------ Gas Utilities--0.1% 6,184 Gas Natural SDG, SA 'E' 124,274 ------------------------------------------------------------------------------------------------------------------ IT Services--0.0% 835 Amadeus Global Travel Distribution SA 'A' 4,785 ------------------------------------------------------------------------------------------------------------------ Insurance--0.1% 7,932 Corporacion Mapfre SA 84,711 ------------------------------------------------------------------------------------------------------------------ Internet Software & 12,990 Terra Networks, SA (a) 78,613 Services--0.1% ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.1% 2,745 Acerinox SA 104,906 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--0.2% 27,190 Repsol-YPF, SA 440,878 ------------------------------------------------------------------------------------------------------------------ Real Estate--0.0% 4,963 Vallehermoso SA 55,055 ------------------------------------------------------------------------------------------------------------------ Specialty Retail--0.1% 5,665 Industria de Disenso Textil, SA 142,468 ------------------------------------------------------------------------------------------------------------------ Tobacco--0.1% 6,366 Altadis 163,168 ------------------------------------------------------------------------------------------------------------------ Transportation 6,334 Autopistas, Concesionaria Espanola SA 88,520 Infrastructure--0.1% ------------------------------------------------------------------------------------------------------------------ Water Utilities--0.0% 3,496 Sociedad General de Aguas de Barcelona, SA 47,774 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Spain (Cost--$5,373,299)--3.7% 6,593,076 =================================================================================================================================== Sweden Airlines--0.0% 1,680 SAS AB (a) 9,218 ------------------------------------------------------------------------------------------------------------------ Auto Components--0.0% 358 Trelleborg AB (Class B) 3,824 ------------------------------------------------------------------------------------------------------------------ Building Products--0.1% 8,188 Assa Abloy AB 'B' 79,272 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--0.5% 81,914 Nordbanken Holding AB 394,991 19,255 Skandinaviska Enskilda Banken (SEB) 'A' 196,039 21,104 Svenska Handelsbanken AB 345,364 ----------- 936,394 ------------------------------------------------------------------------------------------------------------------
34 & 35 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== Sweden Commercial Services & 12,631 Securitas AB 'B' $ 129,388 (concluded) Supplies--0.1% ------------------------------------------------------------------------------------------------------------------ Communications 1,407 Telefonaktiebolaget LM Ericsson (Sponsored ADR) (a)(b) 14,956 Equipment--0.2% 380,392 Telefonaktiebolaget LM Ericsson AB 'B' (a) 408,669 ----------- 423,625 ------------------------------------------------------------------------------------------------------------------ Construction & 11,713 Skanska AB 'B' 66,869 Engineering--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified Financial 1,010 OM Gruppen AB 7,192 Services--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified 3,784 Tele2 AB 'B' (a) 140,630 Telecommunication 28,554 Telia AB 118,426 Services--0.2% ----------- 259,056 ------------------------------------------------------------------------------------------------------------------ Health Care Providers & 3,981 Gambro AB 'B' 26,358 Services--0.0% ------------------------------------------------------------------------------------------------------------------ Household Durables--0.1% 9,442 Electrolux AB 'B' 186,364 ------------------------------------------------------------------------------------------------------------------ IT Services--0.0% 4,275 WM-Data AB 'B' (a) 6,515 ------------------------------------------------------------------------------------------------------------------ Insurance--0.0% 26,306 Skandia Forsakrings AB 69,996 ------------------------------------------------------------------------------------------------------------------ Machinery--0.4% 6,014 Atlas Copco AB 'A' 152,135 4,117 SKF AB 'B' 118,805 8,210 Sandvik AB 214,866 1,148 Volvo AB 'A' 24,093 8,230 Volvo AB 'B' 180,948 ----------- 690,847 ------------------------------------------------------------------------------------------------------------------ Media--0.0% 2,810 Modern Times Group MTG AB 'B' (a) 43,177 ------------------------------------------------------------------------------------------------------------------ Paper & Forest 277 Billerud 3,235 Products--0.2% 7,546 Svenska Cellulosa AB (SCA) 'B' 257,819 ----------- 261,054 ------------------------------------------------------------------------------------------------------------------ Real Estate--0.0% 1,400 Drott AB 'B' 17,664 ------------------------------------------------------------------------------------------------------------------ Specialty Retail--0.2% 16,531 Hennes & Mauritz AB 'B' 379,978 ------------------------------------------------------------------------------------------------------------------ Tobacco--0.1% 11,456 Swedish Match AB 86,582 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Sweden (Cost--$4,190,200)--2.1% 3,683,373 =================================================================================================================================== Switzerland Biotechnology--0.1% 291 Serono SA 'B' 171,006 ------------------------------------------------------------------------------------------------------------------ Capital Markets--1.7% 33,776 Credit Suisse Group 888,941 37,606 UBS AG (Registered Shares) 2,091,921 ----------- 2,980,862 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.4% 2,833 Ciba Specialty Chemicals AG (Registered Shares) 171,500 1,294 Clariant AG (Registered Shares) (a) 11,846 345 Givaudan (Registered Shares) 145,177 2,834 Lonza Group AG (Registered Shares) 129,717 2,268 Syngenta AG 113,689 ----------- 571,929 ------------------------------------------------------------------------------------------------------------------ Commercial Services & 4,777 Adecco SA (Registered Shares) 196,786 Supplies--0.1% 62 SGS Societe Generale de Surveillance Holding SA 'R' 24,213 ----------- 220,999 ------------------------------------------------------------------------------------------------------------------ Computers & Peripherals--0.0% 269 Logitech International SA (Registered Shares) (a) 10,088 ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.1% 4,220 Holcim Ltd. (Registered Shares) 155,927 ------------------------------------------------------------------------------------------------------------------ Diversified Telecommunication 988 Swisscom AG (Registered Shares) 280,817 Services--0.2% ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.1% 43,465 ABB Ltd. (a) 142,792 ------------------------------------------------------------------------------------------------------------------ Electronic Equipment & 1,763 Kudelski SA (Bearer) (a) 31,953 Instruments--0.0% ------------------------------------------------------------------------------------------------------------------ Food Products--1.4% 12,235 Nestle SA (Registered Shares) 2,524,589 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 528 Centerpulse AG (Registered Shares) (a) 142,081 Supplies--0.1% 55 Synthes-Stratec Inc. 39,508 ----------- 181,589 ------------------------------------------------------------------------------------------------------------------ Insurance--0.6% 10,042 Swiss Re (Registered Shares) 556,386 4,302 Zurich Financial Services AG 512,918 ----------- 1,069,304 ------------------------------------------------------------------------------------------------------------------ Machinery--0.0% 133 Sulzer AG (Registered Shares) 18,582 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--2.6% 71,573 Novartis AG (Registered Shares) 2,832,168 22,362 Roche Holding AG 1,754,060 911 Roche Holding AG (Bearer) 111,979 ----------- 4,698,207 ------------------------------------------------------------------------------------------------------------------ Semiconductors & 136 Unaxis Holding AG 'R' 11,069 Semiconductor Equipment--0.0% ------------------------------------------------------------------------------------------------------------------ Textiles, Apparel & 15,784 Compagnie Financiere Richemont AG 'A' 255,191 Luxury Goods--0.1% 449 Swatch Group AG 'B' 40,689 2,276 Swatch Group AG (Registered Shares) 41,418 ----------- 337,298 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in Switzerland (Cost--$13,689,447)--7.5% 13,407,011 ===================================================================================================================================
36 & 37 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== United Kingdom Aerospace & Defense--0.2% 111,566 BAE Systems PLC $ 262,343 74,522 Rolls-Royce Group PLC 157,712 ----------- 420,055 ------------------------------------------------------------------------------------------------------------------ Air Freight & Logistics--0.1% 9,717 Ocean Group PLC 99,735 ------------------------------------------------------------------------------------------------------------------ Airlines--0.0% 16,342 British Airways PLC (a) 40,855 ------------------------------------------------------------------------------------------------------------------ Auto Components--0.1% 21,805 GKN PLC 80,059 ------------------------------------------------------------------------------------------------------------------ Automobiles--0.0% 1,025 TI Automotive Limited 'A' (a) 0 ------------------------------------------------------------------------------------------------------------------ Beverages--0.6% 88,284 Diageo PLC 942,561 16,039 Scottish & Newcastle PLC 97,001 ----------- 1,039,562 ------------------------------------------------------------------------------------------------------------------ Biotechnology--0.1% 14,811 Celltech Group PLC (a) 83,830 ------------------------------------------------------------------------------------------------------------------ Building Products--0.0% 53,235 Pilkington PLC 58,198 ------------------------------------------------------------------------------------------------------------------ Capital Markets--0.2% 23,991 3i Group PLC 223,676 9,940 Amvescap PLC 68,562 2,797 Close Brothers Group PLC 29,885 12,480 Man Group PLC 246,303 4,105 Schroders PLC 42,658 ----------- 611,084 ------------------------------------------------------------------------------------------------------------------ Chemicals--0.1% 18,186 BOC Group PLC 233,325 21,892 Imperial Chemical Industries PLC 44,343 ----------- 277,668 ------------------------------------------------------------------------------------------------------------------ Commercial Banks--5.8% 188,577 Barclays PLC 1,400,310 118,418 HBOS PLC 1,532,970 310,085 HSBC Holdings PLC 3,663,674 4,900 HSBC Holdings PLC (ADR) (b) 289,639 145,116 Lloyds TSB Group PLC 1,030,289 2,530 Lloyds TSB Group PLC (ADR) (b) 73,395 83,854 Royal Bank of Scotland Group PLC 2,352,317 ----------- 10,342,594 ------------------------------------------------------------------------------------------------------------------ Commercial Services & 31,990 Brambles Industries PLC 86,573 Supplies--0.3% 5,197 Bunzl PLC 36,426 29,810 Capita Group PLC 111,172 13,844 Chubb PLC 17,248 68,298 Hays PLC 108,194 66,396 Rentokil Initial PLC 207,348 2,405 Serco Group PLC 6,350 ----------- 573,311 ------------------------------------------------------------------------------------------------------------------ Construction & 18,532 AMEC PLC 79,509 Engineering--0.1% 30,308 BICC PLC 96,525 ----------- 176,034 ------------------------------------------------------------------------------------------------------------------ Construction Materials--0.1% 8,834 BPB PLC 44,753 28,353 Hanson PLC 158,022 7,554 RMC Group PLC 57,558 ----------- 260,333 ------------------------------------------------------------------------------------------------------------------ Consumer Finance--0.0% 7,073 Provident Financial PLC 74,406 ------------------------------------------------------------------------------------------------------------------ Containers & 16,452 Rexam PLC 103,435 Packaging--0.1% ------------------------------------------------------------------------------------------------------------------ Diversified 263,060 BT Group PLC 884,455 Telecommunication 900 BT Group PLC (ADR) (b) 30,294 Services--0.6% 48,379 Cable & Wireless PLC 90,211 ----------- 1,004,960 ------------------------------------------------------------------------------------------------------------------ Electric Utilities--0.4% 29,957 Scottish and Southern Energy PLC 308,465 50,102 ScottishPower PLC 300,940 993 ScottishPower PLC (ADR) (b) 24,140 ----------- 633,545 ------------------------------------------------------------------------------------------------------------------ Electrical Equipment--0.0% 1,460 Kidde PLC 2,048 ------------------------------------------------------------------------------------------------------------------ Electronic Equipment & 12,308 Electrocomponents PLC 65,906 Instruments--0.0% ------------------------------------------------------------------------------------------------------------------ Food & Staples 20,529 Boots Group PLC 219,685 Retailing--0.8% 31,443 J Sainsbury PLC 131,789 38,721 Safeway PLC 164,531 233,934 Tesco PLC 846,362 ----------- 1,362,367 ------------------------------------------------------------------------------------------------------------------ Food Products--0.5% 70,284 Cadbury Schweppes PLC 415,205 8,252 Tate & Lyle PLC 46,638 75,508 Unilever PLC 601,192 ----------- 1,063,035 ------------------------------------------------------------------------------------------------------------------ Gas Utilities--0.3% 150,436 Centrica PLC 436,285 ------------------------------------------------------------------------------------------------------------------ Health Care Equipment & 27,874 Nycomed Amersham PLC 209,168 Supplies--0.2% 3,902 Seton Scholl Healthcare Group PLC 18,930 23,723 Smith & Nephew PLC 136,328 ----------- 364,426 ------------------------------------------------------------------------------------------------------------------
38 & 39 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== United Kingdom Hotels, Restaurants & 6,324 Carnival PLC $ 192,125 (continued) Leisure--0.7% 62,507 Compass Group PLC 337,029 69,991 Hilton Group PLC 212,512 28,847 InterContinental Hotels Group PLC (a) 204,691 40,487 Mitchells & Butlers PLC (a) 156,165 29,178 Rank Group PLC 119,889 1,813 Whitbread PLC 20,284 ----------- 1,242,695 ------------------------------------------------------------------------------------------------------------------ Household Durables--0.1% 546 Barratt Developments PLC 3,892 21,841 George Wimpey PLC 106,321 1,561 Taylor Woodrow PLC 5,178 ----------- 115,391 ------------------------------------------------------------------------------------------------------------------ Household Products--0.2% 21,576 Reckitt Benckiser PLC 395,912 ------------------------------------------------------------------------------------------------------------------ IT Services--0.1% 45,320 Logica PLC 107,129 ------------------------------------------------------------------------------------------------------------------ Industrial 9,108 FKI PLC 11,986 Conglomerates--0.2% 13,554 Smiths Industries PLC 157,234 40,701 Tomkins PLC 152,459 ----------- 321,679 ------------------------------------------------------------------------------------------------------------------ Insurance--0.7% 67,201 AVIVA PLC 466,577 32,421 Friends Provident PLC 60,722 191,597 Legal & General Group PLC 265,577 60,807 Prudential Corporation PLC 368,250 72,384 Royal & Sun Alliance Insurance Group PLC 165,729 ----------- 1,326,855 ------------------------------------------------------------------------------------------------------------------ Internet & Catalog 35,771 The Great Universal Stores PLC 400,797 ------------------------------------------------------------------------------------------------------------------ Retail--0.2% ------------------------------------------------------------------------------------------------------------------ Machinery--0.0% 11,268 IMI PLC 55,782 127,264 Invensys PLC 43,051 ----------- 98,833 ------------------------------------------------------------------------------------------------------------------ Media--1.3% 75,089 Aegis Group PLC 98,197 43,678 British Sky Broadcasting Group PLC ("BSkyB") (a) 483,985 38,415 Carlton Communications PLC 96,037 3,119 Daily Mail and General Trust 'A' 29,337 5,946 EMAP PLC 83,940 37,723 EMI Group PLC 75,943 45,137 Granada PLC 67,779 18,799 Pearson PLC 175,580 47,511 Reed Elsevier PLC 395,333 40,508 Reuters Group PLC 117,479 19,481 United Business Media PLC 97,404 31,038 WPP Group PLC 243,282 ----------- 1,964,296 ------------------------------------------------------------------------------------------------------------------ Metals & Mining--0.6% 78,487 Billiton PLC 413,154 3,020 Johnson Matthey PLC 44,004 33,847 Rio Tinto PLC (Registered Shares) 636,719 ----------- 1,093,877 ------------------------------------------------------------------------------------------------------------------ Multi-Utilities & 62,528 International Power PLC (a) 133,361 Unregulated Power--0.5% 81,872 National Grid Group PLC 555,265 10,623 United Utilities PLC 103,249 ----------- 791,875 ------------------------------------------------------------------------------------------------------------------ Multiline Retail--0.3% 52,033 Marks & Spence Group PLC 271,110 11,491 Next PLC 194,643 ----------- 465,753 ------------------------------------------------------------------------------------------------------------------ Oil & Gas--4.0% 103,543 BG Group PLC 458,763 652,016 BP Amoco PLC 4,521,568 3,849 BP Amoco PLC (ADR) (b) 161,735 299,741 Shell Transport & Trading Company 1,978,469 ----------- 7,120,535 ------------------------------------------------------------------------------------------------------------------ Pharmaceuticals--3.2% 50,744 AstraZeneca Group PLC 2,034,764 800 Glaxo Wellcome PLC (ADR) (b) 32,432 185,087 GlaxoSmithKline PLC 3,735,300 ----------- 5,802,496 ------------------------------------------------------------------------------------------------------------------ Real Estate--0.2% 23,225 The British Land Company PLC 184,246 11,328 Canary Wharf Group PLC 47,854 6,585 Hammerson PLC 53,842 18,331 Land Securities Group PLC 236,395 4,393 Liberty International PLC 44,908 473 Slough Estates PLC 2,667 ----------- 569,912 ------------------------------------------------------------------------------------------------------------------ Road & Rail--0.1% 20,287 FirstGroup PLC 90,387 18,574 Stagecoach Holdings PLC 19,003 ----------- 109,390 ------------------------------------------------------------------------------------------------------------------
40 & 41 June 30, 2003 SCHEDULE OF INVESTMENTS (continued) (in U.S. dollars)
Master International Index Series (continued) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== United Kingdom Semiconductors & 33,823 ARM Holdings PLC (a) $ 37,395 (concluded) Semiconductor Equipment--0.0% ------------------------------------------------------------------------------------------------------------------ Software--0.2% 27,041 Misys PLC 114,678 45,501 The Sage Group PLC 121,635 ----------- 236,313 ------------------------------------------------------------------------------------------------------------------ Specialty Retail--0.5% 43,124 Dixons Group PLC 93,933 98,210 Kingfisher PLC 449,314 79,661 Signet Group PLC 118,636 ----------- 661,883 ------------------------------------------------------------------------------------------------------------------ Tobacco--0.6% 53,717 British American Tobacco PLC 609,407 26,877 Imperial Tobacco Group PLC 480,322 ----------- 1,089,729 ------------------------------------------------------------------------------------------------------------------ Trading Companies & 17,741 Wolseley PLC 196,218 Distributors--0.1% ------------------------------------------------------------------------------------------------------------------ Transportation 5,600 Associated British Ports Holdings PLC 36,686 Infrastructure--0.2% 38,222 BAA PLC 309,368 5,728 BBA Group PLC 19,660 11,523 The Peninsular and Oriental Steam Navigation Company 44,684 ----------- 410,398 ------------------------------------------------------------------------------------------------------------------ Water Utilities--0.1% 15,680 Severn Trent PLC 176,980 ------------------------------------------------------------------------------------------------------------------ Wireless 1,943,571 Vodafone Group PLC 3,800,510 Telecommunication 12,490 Vodafone Group PLC (ADR) (b) 245,428 Services--2.2% ----------- 4,045,938 ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in the United Kingdom (Cost--$50,970,539)--26.9% 47,956,010 =================================================================================================================================== United States Computers & 29,000 Datacraft Asia Limited 29,000 Peripherals--0.0% ------------------------------------------------------------------------------------------------------------------ Diversified Financial 2,000 I Shares MSCI EAFE Index Fund 216,620 Services--0.1% ------------------------------------------------------------------------------------------------------------------ Total Common Stocks in the United States (Cost--$300,860)--0.1% 245,620 =================================================================================================================================== Total Investments in Common Stocks (Cost--$184,062,372)--97.8% 174,629,800 =================================================================================================================================== Preferred Stocks =================================================================================================================================== Australia Media--0.2% 55,904 The News Corporation Limited 344,552 760 The News Corporation Limited (Convertible) (ADR) (b) 19,038 ------------------------------------------------------------------------------------------------------------------ Total Preferred Stocks in Australia (Cost--$344,411)--0.2% 363,590 =================================================================================================================================== Germany Automobiles--0.1% 359 Porsche AG 152,123 2,741 Volkswagen AG 82,185 ----------- 234,308 ------------------------------------------------------------------------------------------------------------------ Household Products--0.1% 1,908 Henkel KGaA 118,120 ------------------------------------------------------------------------------------------------------------------ Media--0.0% 4,900 ProSieben Sat.1 Media AG 32,636 ------------------------------------------------------------------------------------------------------------------ Multi-Utilities & 2,033 RWE AG 54,723 Unregulated Power--0.0% ------------------------------------------------------------------------------------------------------------------ Total Preferred Stocks in Germany (Cost--$517,573)--0.2% 439,787 =================================================================================================================================== New Zealand Paper & Forest 18,827 Fletcher Challenge Forests Ltd. (a) 12,786 Products--0.0% ------------------------------------------------------------------------------------------------------------------ Total Preferred Stocks in New Zealand (Cost--$12,820)--0.0% 12,786 =================================================================================================================================== Total Investments in Preferred Stocks (Cost--$874,804)--0.4% 816,163 =================================================================================================================================== Warrants (c) =================================================================================================================================== France Food & Staples 133 Casino Guichard-Perrachon 21 Retailing--0.0% 133 Casino Guichard-Perrachon 122 ------------------------------------------------------------------------------------------------------------------ Total Warrants in France (Cost--$1,580)--0.0% 143 =================================================================================================================================== Hong Kong Electronic Equipment 600 QPL International Holdings Limited 3 & Instruments--0.0% ------------------------------------------------------------------------------------------------------------------ Total Warrants in Hong Kong (Cost--$0)--0.0% 3 =================================================================================================================================== Total Investments in Warrants (Cost--$1,580)--0.0% 146 ===================================================================================================================================
42 & 43 June 30, 2003 SCHEDULE OF INVESTMENTS (concluded) (in U.S. dollars)
Master International Index Series (concluded) ------------------------------------------------------------------------------------------------------------------ Shares COUNTRY Industries* Held Common Stocks Value =================================================================================================================================== United States US$ 126,669 Merrill Lynch Liquidity Series, LLC Cash Sweep Series I (e) $ 126,669 ------------------------------------------------------------------------------------------------------------------ Total Short-Term Securities (Cost--$126,669)--0.1% 126,669 =================================================================================================================================== Total Investments (Cost--$185,065,425)--98.3%175,572,778 Variation Margin on Financial Futures Contracts***--0.3% 573,188 Unrealized Depreciation on Forward Foreign Exchange Contracts**--0.0% (45,335) Other Assets Less Liabilities--1.4% 2,516,360 ------------ Net Assets--100.0% $178,616,991 ============ ===================================================================================================================================
* For Series compliance purposes, "Industries" means any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Series management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease. ** Forward foreign exchange contracts as of June 30, 2003 were as follows: -------------------------------------------------------------------------- Foreign Unrealized Currency Expiration Appreciation Purchased Date (Depreciation) -------------------------------------------------------------------------- A$ 450,000 July 2003 $ 3,330 CHF 575,000 July 2003 (8,343) (E) 875,000 July 2003 (10,026) (pound) 525,000 July 2003 (14,744) (Y) 85,000,000 July 2003 (15,423) SEK 1,000,000 July 2003 (801) -------------------------------------------------------------------------- Total Unrealized Depreciation on Forward Foreign Exchange Contracts--Net (US$ Commitment--$3,474,492) $ (46,007) --------- -------------------------------------------------------------------------- Foreign Unrealized Currency Expiration Appreciation Sold Date (Depreciation) -------------------------------------------------------------------------- CHF 125,000 July 2003 $ 100 (E) 225,000 July 2003 (678) (pound) 150,000 July 2003 243 (Y) 35,000,000 July 2003 1,007 -------------------------------------------------------------------------- Total Unrealized Appreciation on Forward Foreign Exchange Contracts--Net (US$ Commitment--$890,011) $ 672 --------- -------------------------------------------------------------------------- Total Unrealized Depreciation on Forward Foreign Exchange Contracts--Net $ (45,335) ========= -------------------------------------------------------------------------- *** Financial futures contracts purchased as of June 30, 2003 were as follows: -------------------------------------------------------------------------- Number of Expiration Contracts Issue Exchange Date Value -------------------------------------------------------------------------- 54 EURO DJ EURO September 2003 $1,505,004 2 FTSE LIFFE September 2003 132,474 2 SPI 200 SFE September 2003 101,201 15 TOPIX Toyko September 2003 1,128,669 -------------------------------------------------------------------------- Total Financial Futures Contracts Purchased (Total Contract Price--$2,858,989) $2,867,348 ========== -------------------------------------------------------------------------- (a) Non-income producing security. (b) American Depositary Receipts (ADR). (c) Warrants entitle the Series to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date. (d) The rights may be exercised until 07/03/2003. (e) Investments in companies considered to be an affiliate of the Series (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) are as follows: -------------------------------------------------------------------------- Net Interest Affiliate Activity Income -------------------------------------------------------------------------- Merrill Lynch Liquidity Series, LLC Cash Sweep Series I $(3,962,405) $24,085 -------------------------------------------------------------------------- See Notes to Financial Statements. STATEMENT OF ASSETS AND LIABILITIES
MASTER INTERNATIONAL INDEX SERIES As of June 30, 2003 ============================================================================================================================= Assets: Investments, at value (including securities loaned of $19,972,573) (identified cost--$185,065,425) ................................... $ 175,572,778 Cash held as collateral for loaned securities ..................... 21,102,830 Cash on deposit for financial futures contracts ................... 846,990 Cash .............................................................. 307,538 Foreign cash (cost--$1,476,824) ................................... 1,498,784 Receivables: Variation margin ................................................ $ 573,188 Dividends ....................................................... 545,600 Contributions ................................................... 285,047 Securities sold ................................................. 75,647 Interest ........................................................ 3,659 1,483,141 ------------- Prepaid expenses .................................................. 1,265 ------------- Total assets ...................................................... 200,813,326 ------------- ============================================================================================================================= Liabilities: Collateral on securities loaned, at value ......................... 21,102,830 Unrealized depreciation on forward foreign exchange contracts ..... 45,335 Payables: Withdrawals ..................................................... 854,475 Securities purchased ............................................ 83,634 Forward foreign exchange contracts .............................. 81,307 Investment adviser .............................................. 1,618 Other affiliates ................................................ 950 1,021,984 ------------- Accrued expenses and other liabilities ............................ 26,186 ------------- Total liabilities ................................................. 22,196,335 ------------- ============================================================================================================================= Net Assets: Net assets ........................................................ $ 178,616,991 ============= ============================================================================================================================= Net Assets Investors' capital ................................................ $ 188,092,903 Consist of: Unrealized depreciation on investments and foreign currency transactions--net ................................................. (9,475,912) ------------- Net assets ........................................................ $ 178,616,991 ============= =============================================================================================================================
See Notes to Financial Statements. 44 & 45 June 30, 2003 STATEMENT OF OPERATIONS
MASTER INTERNATIONAL INDEX SERIES For the Six Months Ended June 30, 2003 ============================================================================================================================= Investment Income: Dividends (net of $385,076 foreign withholding tax) ............... $ 2,983,719 Interest .......................................................... 40,693 Securities lending--net ........................................... 46,521 ------------- Total income ...................................................... 3,070,933 ------------- ============================================================================================================================= Expenses: Professional fees ................................................. $ 48,644 Custodian fees .................................................... 39,133 Accounting services ............................................... 17,100 Investment advisory fees .......................................... 8,420 Trustees' fees and expenses ....................................... 1,282 Printing and shareholder reports .................................. 696 Other ............................................................. 6,513 ------------- Total expenses before reimbursement ............................... 121,788 Reimbursement of expenses ......................................... (17,696) ------------- Total expenses after reimbursement ................................ 104,092 ------------- Investment income--net ............................................ 2,966,841 ------------- ============================================================================================================================= Realized & Realized gain (loss) from: Unrealized Gain Investments--net ................................................ (2,775,543) (Loss) on Foreign currency transactions--net .............................. 718,557 (2,056,986) Investments & ------------- Foreign Currency Change in unrealized appreciation/depreciation on: Transactions--Net: Investments--net ................................................ 16,509,484 Foreign currency transactions--net .............................. (246,717) 16,262,767 ------------- ------------- Total realized and unrealized gain on investments and foreign currency transactions--net ........................................ 14,205,781 ------------- Net Increase in Net Assets Resulting from Operations .............. $ 17,172,622 ============= =============================================================================================================================
See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS
For the Six For the MASTER Months Ended Year Ended INTERNATIONAL June 30, December 31, INDEX SERIES Increase (Decrease) in Net Assets: 2003 2002 ============================================================================================================================= Operations: Investment income--net ............................................ $ 2,966,841 $ 4,256,606 Realized loss on investments and foreign currency transactions--net (2,056,986) (15,497,931) Change in unrealized appreciation/depreciation on investments and foreign currency transactions--net ................................ 16,262,767 (23,022,788) ------------- ------------- Net increase (decrease) in net assets resulting from operations ... 17,172,622 (34,264,113) ------------- ------------- ============================================================================================================================= Capital Proceeds from contributions ....................................... 27,347,229 85,092,571 Transactions: Fair value of withdrawals ......................................... (32,723,192) (79,519,958) ------------- ------------- Increase (decrease) in net assets derived from net capital contributions ..................................................... (5,375,963) 5,572,613 ------------- ------------- ============================================================================================================================= Net Assets: Total increase (decrease) in net assets ........................... 11,796,659 (28,691,500) Beginning of period ............................................... 166,820,332 195,511,832 ------------- ------------- End of period ..................................................... $ 178,616,991 $ 166,820,332 ============= ============= =============================================================================================================================
See Notes to Financial Statements. 46 & 47 June 30, 2003 FINANCIAL HIGHLIGHTS
For the For the Period Six Months For the Year Ended Dec. 30, MASTER Ended December 31, 1999+ to INTERNATIONAL The following ratios have been derived from June 30, --------------------------------- Dec. 31, INDEX SERIES FUND information provided in the financial statements 2003 2002 2001 2000 1999 ================================================================================================================================== Total Investment 10.25%@ (15.81%) (21.77%) -- -- Return: ========= ========= ========= ========= ========= ================================================================================================================================== Ratios to Average Expenses, net of reimbursement .................... .12%* .08% .08% .08% .08%* Net Assets: ========= ========= ========= ========= ========= Expenses .......................................... .14%* .16% .39% 1.34% .63%* ========= ========= ========= ========= ========= Investment income--net ............................ 3.52%* 2.21% 1.20% 1.55% 2.14%* ========= ========= ========= ========= ========= ================================================================================================================================== Supplemental Net assets, end of period (in thousands) .......... $ 178,617 $ 166,820 $ 195,512 $ 15,763 $ 10,054 Data: ========= ========= ========= ========= ========= Portfolio turnover ................................ 10.11% 19.52% 30.19% 5.89% .00% ========= ========= ========= ========= ========= ==================================================================================================================================
* Annualized. + Commencement of operations. @ Aggregated total investment return. See Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS MASTER INTERNATIONAL INDEX SERIES 1. Significant Accounting Policies: Master International Index Series (the "Series") is part of Quantitative Master Series Trust (the "Trust"). The Trust is registered under the Investment Company Act of 1940, as amended, and is organized as a Delaware statutory trust. The Declaration of Trust permits the Trustees to issue nontransferable interests in the Series, subject to certain limitations. The Series' financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. These unaudited financial statements reflect all adjustments, which are, in the opinion of management, necessary to a fair statement of the results for the interim period presented. All such adjustments are of a normal, recurring nature. The following is a summary of significant accounting policies followed by the Series. (a) Valuation of investments -- Portfolio securities that are traded on stock exchanges or the Nasdaq National Market are valued at the last sale price or official closing price on the exchange on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the closing bid price for long positions, and at the last available ask price for short positions. Securities traded in the over-the-counter market are valued at the last quoted bid price at the close of trading on the New York Stock Exchange on each day by brokers that make markets in the securities. Securities traded in the Nasdaq National Market System are valued at the last sale price prior to the time of valuation. Portfolio securities that are traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market. Options written or purchased are valued at the last sale price in the case of exchange-traded options. In the case of options traded in the over-the-counter market, valuation is the last asked price (options written) or the last bid price (options purchased). Short-term securities are valued at amortized cost, which approximates market value. Other investments, including futures contracts and related options, are stated at market value. Securities and assets for which market quotations are not readily available are valued at fair market value, as determined in good faith by or under the direction of the Trust's Board of Trustees. (b) Derivative financial instruments -- The Series may engage in various portfolio investment strategies to provide liquidity or as a proxy for a direct investment in securities underlying the Series' index. Losses may arise due to changes in the value of the contract or if the counterparty does not perform under the contract. o Financial futures contracts -- The Series may purchase or sell financial futures contracts and options on such futures contracts. Upon entering into a contract, the Series deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Series as unrealized gains or losses. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. o Options -- The Series is authorized to purchase and write call and put options. When the Series writes an option, an 48 & 49 June 30, 2003 NOTES TO FINANCIAL STATEMENTS (concluded) MASTER INTERNATIONAL INDEX SERIES amount equal to the premium received by the Series is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Series enters into a closing transaction), the Series realizes a gain or loss on the option to the extent of the premiums received or paid (or a gain or loss to the extent that the cost of the closing transaction exceeds the premium paid or received). Written and purchased options are non-income producing investments. o Forward foreign exchange contracts -- The Series is authorized to enter into forward foreign exchange contracts as a hedge against either specific transactions or portfolio positions. The contract is marked-to-market daily and the change in market value is recorded by the Series as an unrealized gain or loss. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. o Foreign currency options and futures -- The Series may also purchase or sell listed or over-the-counter foreign currency options, foreign currency futures and related options on foreign currency futures as a short or long hedge against possible variations in foreign exchange rates. Such transactions may be effected with respect to hedges on non-U.S. dollar-denominated securities owned by the Series, sold by the Series but not yet delivered, or committed or anticipated to be purchased by the Series. (c) Foreign currency transactions -- Transactions denominated in foreign currencies are recorded at the exchange rate prevailing when recognized. Assets and liabilities denominated in foreign currencies are valued at the exchange rate at the end of the period. Foreign currency transactions are the result of settling (realized) or valuing (unrealized) assets or liabilities expressed in foreign currencies into U.S. dollars. Realized and unrealized gains or losses from investments include the effects of foreign exchange rates on investments. (d) Income taxes -- The Series is classified as a "pass through" entity for Federal income tax purposes. As such, each investor in the Series is treated as owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no Federal income tax provision is required. Under the applicable foreign tax law, a withholding tax may be imposed on interest, dividends and capital gains at various rates. It is intended that the Series' assets will be managed so an investor in the Series can satisfy the requirements of subchapter M of the Internal Revenue Code. (e) Security transactions and investment income -- Security transactions are accounted for on the date the securities are purchased or sold (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Series has determined the ex-dividend date. Interest income is recognized on the accrual basis. (f) Securities lending -- The Series may lend securities to financial institutions that provide cash or securities issued or guaranteed by the U.S. government as collateral, which will be maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. Where the Series receives securities as collateral for the loaned securities, it collects a fee from the borrower. The Series typically receives the income on the loaned securities but does not receive the income on the collateral. Where the Series receives cash collateral, it may invest such collateral and retain the amount earned on such investment, net of any amount rebated to the borrower. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within five business days. The Series may pay reasonable finder's, lending agent, administrative and custodial fees in connection with its loans. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Series also could suffer a loss where the value of the collateral falls below the market value of the borrowed securities, in the event of borrower default or in the event of losses on investments made with cash collateral. 2. Investment Advisory Agreement and Transactions with Affiliates: The Trust has entered into an Investment Advisory Agreement with Fund Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner. FAM is responsible for the management of the Series' portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Series. For such services, the Series pays a monthly fee at an annual rate of .01% of the average daily value of the Series' net assets. FAM has entered into a contractual arrangement with the Series under which the expenses incurred by the Series will not exceed .12%. This arrangement expires December 31, 2003 and is renewable. For the six months ended June 30, 2003, FAM reimbursed the Series in the amount of $17,696. For the six months ended June 30, 2003, the Series reimbursed FAM $2,104 for certain accounting services. Certain officers and/or trustees of the Series are officers and/or directors of FAM, PSI, and/or ML & Co. 3. Investments: Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2003 were $18,603,180 and $14,949,064, respectively. Net realized gains (losses) for the six months ended June 30, 2003 and unrealized gains (losses) as of June 30, 2003 were as follows: - -------------------------------------------------------------------------------- Realized Unrealized Gains (Losses) Gains (Losses) - -------------------------------------------------------------------------------- Investments: Long-term .............................. $(2,473,804) $(9,492,647) Financial futures contracts ............ (301,739) 8,359 ----------- ----------- Total investments ........................ (2,775,543) (9,484,288) ----------- ----------- Currency transactions: Forward foreign exchange contracts ............................ (499,076) (45,335) Foreign currency transactions .......... 1,217,633 53,711 ----------- ----------- Total currency transactions .............. 718,557 8,376 ----------- ----------- Total .................................... $(2,056,986) $(9,475,912) =========== =========== - -------------------------------------------------------------------------------- As of June 30, 2003, net unrealized depreciation for Federal income tax purposes aggregated $12,200,476, of which $16,080,440 related to appreciated securities and $28,280,916 related to depreciated securities. At June 30, 2003, the aggregate cost of investments for Federal income tax purposes was $187,773,254. 4. Commitments: At June 30, 2003, the Series had entered into foreign exchange contracts, in addition to the contracts listed in the Schedule of Investments, under which it had agreed to sell various foreign currencies with an approximate value of $1,239,000. 5. Short-Term Borrowings: The Series, along with certain other funds managed by FAM and its affiliates, is a party to a $500,000,000 credit agreement with Bank One, N.A. and certain other lenders. The Series may borrow under the credit agreement to fund shareholders redemptions and for other lawful purposes other than for leverage. The Series may borrow up to the maximum amount allowable under the Series' current prospectus and statement of additional information, subject to various other legal, regulatory or contractual limits. The Series pays a commitment fee of ..09% per annum based on the Series' pro rata share of the unused portion of the credit agreement. Amounts borrowed under the credit agreement bear interest at a rate equal to, at each fund's election, the Federal Funds rate plus .50% or a base rate as determined by Bank One, N.A. On November 29, 2002, the credit agreement was renewed for one year at the same terms, except that the commitment was reduced from $1,000,000,000 to $500,000,000. The Series did not borrow under the credit agreement during the six months ended June 30, 2003. 50 & 51 [LOGO] Merrill Lynch Investment Managers This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund's current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2) on www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's website at http://www.sec.gov. Merrill Lynch Index Funds, Inc. Box 9011 Princeton, NJ 08543-9011 [RECYCLED LOGO] Printed on post-consumer recycled paper #Index 2--6/03 Item 2 - Did registrant adopt a code of ethics, as of the end of the period covered by this report, that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party? If not, why not? Briefly describe any amendments or waivers that occurred during the period. State here if code of ethics/amendments/waivers are on website and give website address-. State here if fund will send code of ethics to shareholders without charge upon request-- N/A (annual requirement only and not required to be answered until the registrant's fiscal year-end on or after July 15, 2003) Item 3 - Did the registrant's board of directors determine that the registrant either: (i) has at least one audit committee financial expert serving on its audit committee; or (ii) does not have an audit committee financial expert serving on its audit committee? If yes, disclose name of financial expert and whether he/she is "independent," (fund may, but is not required, to disclose name/independence of more than one financial expert) If no, explain why not. -N/A (annual requirement only and not required to be answered until the registrant's fiscal year-end on or after July 15, 2003) Item 4 - Disclose annually only (not answered until December 15, 2003) (a) Audit Fees - Disclose aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. N/A. (b) Audit-Related Fees - Disclose aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (c) Tax Fees - Disclose aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (d) All Other Fees - Disclose aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. N/A. (e)(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. N/A. (f) If greater than 50%, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. N/A. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. N/A. (h) Disclose whether the registrant's audit committee has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. N/A. Item 5 - If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act, state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant's audit committee in Section 3(a)(58)(B) of the Exchange Act, so state. If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act regarding an exemption from the listing standards for audit committees. N/A (Listed issuers must be in compliance with the new listing rules by the earlier of their first annual shareholders meeting after January 2004, or October 31, 2004 (annual requirement)) Item 6 - Reserved Item 7 - For closed-end funds that contain voting securities in their portfolio, describe the policies and procedures that it uses to determine how to vote proxies relating to those portfolio securities. N/A Item 8 -- Reserved Item 9(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. Item 9(b) -- There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 10 - Exhibits 10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or amendments/waivers is on website or offered to shareholders upon request without charge. N/A. 10(b) - Attach certifications pursuant to Section 302 of the Sarbanes-Oxley Act. Attached hereto. Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Merrill Lynch International Index Fund By: /s/ Terry K. Glenn --------------------------- Terry K. Glenn, President of Merrill Lynch International Index Fund Date: August 21, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Terry K. Glenn --------------------------- Terry K. Glenn, President of Merrill Lynch International Index Fund Date: August 21, 2003 By: /s/ Donald C. Burke --------------------------- Donald C. Burke, Chief Financial Officer of Merrill Lynch International Index Fund Date: August 21, 2003 Attached hereto as a furnished exhibit are the certifications pursuant to Section 906 of the Sarbanes-Oxley Act. EX-99.CERT 3 e300596_ex99-cert.txt CERTIFICATION PURSUANT TO SECTION 302 EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Terry K. Glenn, President of Merrill Lynch International Index Fund, certify that: 1. I have reviewed this report on Form N-CSR of Merrill Lynch International Index Fund (the "Fund"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this report; 4. The Fund's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the Fund's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal half-year (the Fund's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer(s) and I have disclosed, based on our most recent evaluation, to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal control over financial reporting. Date: August 21, 2003 /s/ Terry K. Glenn ------------------ Terry K. Glenn, President of Merrill Lynch International Index Fund EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Donald C. Burke, Chief Financial Officer of Merrill Lynch International Index Fund, certify that: 1. I have reviewed this report on Form N-CSR of Merrill Lynch International Index Fund (the "Fund"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this report; 4. The Fund's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the Fund's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal half-year (the Fund's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer(s) and I have disclosed, based on our most recent evaluation, to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal control over financial reporting. Date: August 21, 2003 /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Financial Officer of Merrill Lynch International Index Fund EX-99.1350 CERT 4 e300596_ex99-1350cert.txt CERTIFICATION PURSUANT TO SECTION 906 Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Terry K. Glenn, President of Merrill Lynch International Index Fund (the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: August 21, 2003 /s/ Terry K. Glenn ------------------ Terry K. Glenn, President of Merrill Lynch International Index Fund A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Merrill Lynch International Index Fund and will be retained by Merrill Lynch International Index Fund and furnished to the Securities and Exchange Commission or its staff upon request. Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Donald C. Burke, Chief Financial Officer of Merrill Lynch International Index Fund (the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: August 21, 2003 /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Financial Officer of Merrill Lynch International Index Fund A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Merrill Lynch International Index Fund and will be retained by Merrill Lynch International Index Fund and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----