-----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, WMO8ZCD/ZyWisxnUYoXLAUG+1DlRVKpaT5ABU5Z/FBBpQ5FJmjjOqSLbrkImVFjO hb1JP6530MhQxxIjxv7b+Q== 0001193805-05-000759.txt : 20050404 0001193805-05-000759.hdr.sgml : 20050404 20050404161912 ACCESSION NUMBER: 0001193805-05-000759 CONFORMED SUBMISSION TYPE: N-CSR/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041231 FILED AS OF DATE: 20050404 DATE AS OF CHANGE: 20050404 EFFECTIVENESS DATE: 20050404 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/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-07899 FILM NUMBER: 05730080 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/A 1 e500384_ncsra-mlinterindex.txt AMENDMENT TO 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 811-07899 811-07885 Name of Fund: International Index Fund of Merrill Lynch Index Funds, Inc. Master International Index Series of Quantitative Master Series Trust Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., Chief Executive Officer, International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust, 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: 12/31/04 Date of reporting period: 01/01/04 - 12/31/04 Item 1 - Report to Stockholders [LOGO] Merrill Lynch Investment Managers www.mlim.ml.com Merrill Lynch International Index Fund Merrill Lynch Index Funds, Inc. Annual Report December 31, 2004 [LOGO] Merrill Lynch Investment Managers Merrill Lynch International Index Fund Portfolio Information as of December 31, 2004 Percent of Total Geographic Allocation Investments - -------------------------------------------------------------------------------- United Kingdom .......................................... 24.8% Japan ................................................... 21.2 France .................................................. 9.4 Germany ................................................. 7.0 Switzerland ............................................. 6.9 Australia ............................................... 5.0 Netherlands ............................................. 4.8 Italy ................................................... 4.3 Spain ................................................... 3.7 Sweden .................................................. 2.4 Finland ................................................. 1.5 Belgium ................................................. 1.3 Hong Kong ............................................... 1.3 Ireland ................................................. 0.9 Singapore ............................................... 0.9 Denmark ................................................. 0.8 Greece .................................................. 0.6 Norway .................................................. 0.6 South Africa ............................................ 0.5 Austria ................................................. 0.5 Portugal ................................................ 0.4 New Zealand ............................................. 0.2 United States ........................................... 0.1 Bermuda* ................................................ 0.0 Other** ................................................. 0.9 - -------------------------------------------------------------------------------- * Amount is less than 0.1%. ** Includes portfolio holdings in short-term investments. 2 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 A Letter From the President and Chief Investment Officer Dear Shareholder The U.S. equity market ended 2004 in positive territory, although not without some suspense along the way. Fixed income markets also performed well, with high yield bond investors enjoying some of the greatest returns. Over the past year, the equity market generally found support from a healthy economic environment, above-average corporate earnings, increased capital spending and still-low interest rates. Stalling the momentum somewhat throughout the year was a contentious election, negligible inflation amid a rising federal funds interest rate, record-high oil prices and the seemingly ever-present worries over terrorism and the war in Iraq. Still, the Standard & Poor's 500 Index posted a 12-month return of +10.88% and a six-month return of +7.19% as of December 31, 2004. The fourth quarter of the year proved to be the most telling, as the S&P 500 Index was up only 1.51% year-to-date as of September 30, 2004. As the price of oil relaxed and election uncertainties subsided, the market headed more convincingly upward in the last quarter of the year. Given the relatively positive environment for equities, the favorable performance of the bond market came as somewhat of a surprise. The Lehman Brothers Aggregate Bond Index posted a 12-month return of +4.34% and a six-month return of +4.18% as of December 31, 2004. The tax-exempt market performed just as well, with a 12-month return of +4.48% and a six-month return of +5.19%, as measured by the Lehman Brothers Municipal Bond Index. Those comfortable with a higher degree of risk benefited this past year, as the Credit Suisse First Boston High Yield Index posted a 12-month return of +11.95% and a six-month return of +9.26%. Interestingly, as the Federal Reserve Board began raising its target short-term interest rate, long-term bond yields were little changed. In fact, the yield on the 10-year Treasury was 4.24% at year-end compared to 4.27% at December 31, 2003. The yield on the two-year Treasury climbed to 3.08% at year-end 2004 from 1.84% a year earlier. As always, our investment professionals are closely monitoring the markets, the economy and the overall environment in an effort to make well-informed decisions for the portfolios they manage. For the individual investor, the key to investment success -- particularly during uncertain times -- is to maintain a long-term perspective and adhere to the disciplines of asset allocation, diversification and rebalancing. We encourage you to work with your financial advisor to ensure these time-tested techniques are incorporated into your investment plan. We thank you for trusting Merrill Lynch Investment Managers with your investment assets, and we look forward to serving you in the new year and beyond. Sincerely, /s/ Robert C. Doll, Jr. Robert C. Doll, Jr. President and Chief Investment Officer Merrill Lynch Investment Managers MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 3 [LOGO] Merrill Lynch Investment Managers A Discussion With Your Fund's Portfolio Managers The Fund was able to meet its objective of closely tracking the return of the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index. How did the Fund perform during the fiscal year? For the 12-month period ended December 31, 2004, Merrill Lynch International Index Fund's Class A and Class I Shares had total returns of +19.46% and +19.78%, respectively. For the same period, the Fund's benchmark, the MSCI EAFE Index, returned +20.25%. (Complete performance information can be found on pages 6 and 7 of this report to shareholders.) The Fund met its objective of closely tracking the performance of the MSCI EAFE Index. The Index is composed of equity securities of companies from various industry sectors whose primary trading markets are located outside the United States. As the value of the MSCI EAFE Index fluctuated during the year, the Fund's performance generally tracked that of the Index. Throughout the period, as changes were made to the composition of the MSCI EAFE Index, we purchased and sold securities to maintain our objective of replicating the risks and returns of the benchmark. As an index fund, the portfolio mirrors the composition of the MSCI EAFE Index, a common measure of international stock market performance. What developments affected worldwide equity markets during the period? The first quarter of 2004 began with renewed investor appetite for risk and upward movement in the MSCI EAFE Index in January and February. Fears of terrorist activity resurfaced as the markets reacted sharply to the attack in Madrid, Spain. The "flight to quality" took over and top performers featured high-quality and value issues, as market uncertainty caused investors to change favor from the lower-quality, lower-price and higher-beta securities that performed well in the fourth quarter of 2003. The second quarter of 2004 showed positive yet unimpressive returns for the global equity markets, influenced mainly by indecisive global investors. This behavior stemmed from continued political tension in the United States, violence in Iraq and record-high oil prices. The shift in investor favor from lower-quality, lower-price and higher-beta securities to higher-quality, higher-cap and lower-beta stocks that began at the end of the first quarter grew stronger in the second quarter. The third quarter proved to be a slightly negative period for global equities as the MSCI EAFE Index returned -.28% and the MSCI World Index returned -1.00%. The war in Iraq and the risks associated with the geopolitical situation added to investors' trepidation, especially as oil prices continued to climb. The fourth quarter painted a different picture, as oil prices began to recede and international market indexes broke out of their slumps with a vengeance. The MSCI EAFE Index returned +15.32% and the MSCI World Index returned +11.94% for the fourth quarter. Large cap stocks showed some strength in mid-year, but small caps rebounded in the fourth quarter. During the year, the 10 sectors in the benchmark MSCI EAFE Index all posted positive returns, led by utilities, up 33.68%; energy, up 24.22%; and financials, up 23.59%, all in U.S. dollar terms. Lagging performers included information technology, up 6.80%; health care, up 14.31%; and consumer staples, up 18.01%. All of the 21 countries in the MSCI EAFE Index posted positive returns for the year, with 10 countries posting returns in excess of 30%. Finland was the only country to post single-digit growth. Japan, which has the second-highest country weight in the MSCI EAFE Index and the largest country weight out of the Far East portion of the Index, returned +15.86% for 2004. The top performer in the Index was Austria, up 71.52%, followed by Norway and Greece, with respective returns of +53.27% and +46.06%, all in U.S. dollar terms. The countries with the worst performance for the year were Finland, the Netherlands and Switzerland, with respective returns of +6.14%, +12.24% and +14.96%. 4 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 On December 31, 2004, the Standard & Poor's 500 Index closed at 1,211.92 with a price return of +8.99%. The Dow Jones Industrial Average closed at 10,783.01 with a price return of +3.15%, while the Nasdaq Composite Index returned +8.59% with a closing level of 2,175.44. European markets delivered comparable gains, with the Financial Times Stock Exchange 100 Index closing at 4,814.30, representing a return of +7.54% in sterling. In the meantime, the MSCI World Index was up 12.84% in U.S. dollar terms, with a closing level of 1,169.34 at December 31, 2004. The U.S. dollar is set for the longest annual losing streak since 1987, as it is being hampered by record current account and fiscal deficits, waning appetite for U.S. assets among foreign investors, and comments from Federal Reserve Board and Treasury officials suggesting they favor a weaker dollar. The dollar stands at a near-record low against the euro, down more than 15% from its high for the year. At the end of the year, the dollar traded at a record high against the yen, but both currencies are sliding in line together against the euro. How would you characterize market conditions at the close of the period? Although the regional European economy is lagging, companies appear well positioned to benefit from improving external demand. Earnings momentum is building, but the strong euro should trim unhedged overseas earnings. U.K. companies are feeling the effects of a stronger sterling, higher interest rates (via the housing market and retail sales) and a modest economic recovery. In Japan, disappointing economic data has raised questions about the sustainability of the recovery, but the bottom-up evidence supports equity valuations. Against this backdrop, we expect the portfolio to continue to meet its objective of closely tracking the performance of the MSCI EAFE Index in 2005. Vincent J. Costa Co-Portfolio Manager Debra L. Jelilian Co-Portfolio Manager Jeffrey L. Russo Co-Portfolio Manager January 11, 2005 - -------------------------------------------------------------------------------- We are pleased to announce that the day-to-day management of Merrill Lynch International Index Fund is now run by Vincent J. Costa, Director of Merrill Lynch Investment Managers (MLIM) (Quantitative Investments) since 1999; Debra L. Jelilian, Director of MLIM (Quantitative Investments) since 1999; and Jeffrey L. Russo, Director of MLIM (Quantitative Investments) since 2004 and Vice President of MLIM from 1999 to 2004. - -------------------------------------------------------------------------------- MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 5 [LOGO] Merrill Lynch Investment Managers Performance Data About Fund Performance Investors are able to purchase shares of the Fund, which offers two pricing alternatives: o Class A Shares do not incur an initial sales charge (front-end load) 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% per year. o Class I Shares do not incur an 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. Current performance may be lower or higher than the performance data quoted. Refer to www.mlim.ml.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Fund is subject to a 2% redemption fee for sales or exchanges of shares within 30 days of purchase. Performance data does not reflect this potential fee. Figures shown in each of the following tables assume reinvestment of all dividends and capital gain distributions, if any, at net asset value on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of account maintenance and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. Recent Performance Results
6-Month 12-Month Since Inception As of December 31, 2004 Total Return Total Return Total Return ============================================================================================================= ML International Index Fund Class A Shares* +14.55% +19.46% +55.38% - ------------------------------------------------------------------------------------------------------------- ML International Index Fund Class I Shares* +14.64 +19.78 +58.32 - ------------------------------------------------------------------------------------------------------------- MSCI EAFE Index--Cap Weighted** +15.00 +20.25 +48.01 - -------------------------------------------------------------------------------------------------------------
* Cumulative total investment returns are based on changes in net asset values for the periods shown, and assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date. The Fund's inception date is 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 reflect 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. 6 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Performance Data (concluded) Total Return Based on a $10,000 Investment--Class A & Class I Shares A line graph depicting the growth of an investment in the Fund's Class A Shares and Class I Shares compared to growth of an investment in the MSCI EAFE (Cap Weighted) Index. Values are from April 9, 1997 to December 2004.
4/09/97** 12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 ML International Index Fund+--Class A Shares* $10,000 $10,822 $13,571 $17,771 $14,573 $11,241 $ 9,418 $13,007 $15,538 ML International Index Fund+--Class I Shares* $10,000 $10,845 $13,627 $17,891 $14,706 $11,378 $ 9,551 $13,217 $15,832 4/30/97** 12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 MSCI EAFE (Cap Weighted) Index++ $10,000 $10,285 $12,342 $15,670 $13,450 $10,566 $ 8,882 $12,309 $14,801
* Assuming transaction costs and other operating expenses, including administrative fees. ** Commencement of operations. + The Fund invests all of its assets in Master International (Capitalization Weighted) Index Series of Quantitative Master Series Trust. The Trust may invest in a statistically selected sample of the equity securities included in the Europe, Australasia and Far East Index and other types of financial instruments. ++ 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 which are selected from among the larger-capitalization companies in such markets. The starting date for the Index in the graph is from 4/30/97. Past performance is not predictive of future results. Average Annual Total Return Class A Shares Return ================================================================================ One Year Ended 12/31/04 +19.46% - -------------------------------------------------------------------------------- Five Years Ended 12/31/04 - 2.65 - -------------------------------------------------------------------------------- Inception (4/09/97) through 12/31/04 + 5.87 - -------------------------------------------------------------------------------- Class I Shares Return ================================================================================ One Year Ended 12/31/04 +19.78% - -------------------------------------------------------------------------------- Five Years Ended 12/31/04 - 2.42 - -------------------------------------------------------------------------------- Inception (4/09/97) through 12/31/04 + 6.13 - -------------------------------------------------------------------------------- MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 7 [LOGO] Merrill Lynch Investment Managers Disclosure of Expenses Shareholders of this Fund may incur the following charges: (a) expenses related to transactions, including sales charges, redemption fees and exchange fees; and (b) operating expenses including advisory fees, distribution fees including 12(b)-1 fees, and other Fund expenses. The following example (which is based on a hypothetical investment of $1,000 invested on July 1, 2004 and held through December 31, 2004) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds. The first table below provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period." The second table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in this Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds' shareholder reports. The expenses shown in the table are intended to highlight shareholders ongoing costs only and do not reflect any transactional expenses, such as sales charges, redemption fees or exchange fees. Therefore, the second table is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
Expenses Paid Beginning Ending During the Period* Account Value Account Value July 1, 2004 to July 1, 2004 December 31, 2004 December 31, 2004 ==================================================================================================================== Actual ==================================================================================================================== Class A $1,000 $1,145.50 $4.53 - -------------------------------------------------------------------------------------------------------------------- Class I $1,000 $1,146.40 $3.18 ==================================================================================================================== Hypothetical (5% annual return before expenses)** ==================================================================================================================== Class A $1,000 $1,020.91 $4.27 - -------------------------------------------------------------------------------------------------------------------- Class I $1,000 $1,022.17 $3.00 - --------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense ratio for the class (.84% for Class A and .59% for Class I), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Because the Fund is a feeder fund, the expense table example reflects the expenses of both the feeder fund and the master series in which it invests. ** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half-year divided by 366. 8 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Statement of Assets and Liabilities Merrill Lynch International Index Fund As of December 31, 2004 ================================================================================================================================ Assets - -------------------------------------------------------------------------------------------------------------------------------- Investment in Master International Index Series (the "Series"), at value (identified cost--$141,202,808) ............................ $ 168,935,718 Prepaid expenses ..................................................... 16,032 ------------- Total assets ......................................................... 168,951,750 ------------- ================================================================================================================================ Liabilities - -------------------------------------------------------------------------------------------------------------------------------- Payables: Administrator ..................................................... $ 52,598 Distributor ....................................................... 26,891 79,489 ------------- Accrued expenses and other liabilities ............................... 121,855 ------------- Total liabilities .................................................... 201,344 ------------- ================================================================================================================================ Net Assets - -------------------------------------------------------------------------------------------------------------------------------- Net assets ........................................................... $ 168,750,406 ================================================================================================================================ Net Assets Consist of - -------------------------------------------------------------------------------------------------------------------------------- Class A Shares of Common Stock, $.0001 par value, 125,000,000 shares authorized ................................................... $ 1,192 Class I Shares of Common Stock, $.0001 par value, 125,000,000 shares authorized ................................................... 321 Paid-in capital in excess of par ..................................... 147,516,798 Accumulated distributions in excess of investment income--net ........ $ (214,966) Accumulated realized capital losses allocated from the Series--net ... (6,285,849) Unrealized appreciation allocated from the Series--net ............... 27,732,910 ------------- Total accumulated earnings--net ...................................... 21,232,095 ------------- Net Assets ........................................................... $ 168,750,406 ============= ================================================================================================================================ Net Asset Value - -------------------------------------------------------------------------------------------------------------------------------- Class A--Based on net assets of $132,872,648 and 11,921,235 shares outstanding ......................................................... $ 11.15 ============= Class I--Based on net assets of $35,877,758 and 3,206,002 shares outstanding ......................................................... $ 11.19 =============
See Notes to Financial Statements. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 9 [LOGO] Merrill Lynch Investment Managers Statement of Operations Merrill Lynch International Index Fund For the Year Ended December 31, 2004 ================================================================================================================================ Investment Income Allocated from the Series--Net - -------------------------------------------------------------------------------------------------------------------------------- Net investment income allocated from the Series: Dividends (net of $388,463 foreign withholding tax) ............... $ 3,595,167 Interest (including $37,677 from affiliates) ...................... 63,297 Securities lending ................................................ 50,787 Expenses (net of $20,820 reimbursement) ........................... (144,063) ------------- Net investment income allocated from the Series ...................... 3,565,188 ------------- ================================================================================================================================ Expenses - -------------------------------------------------------------------------------------------------------------------------------- Administration fees .................................................. $ 500,897 Account maintenance fees--Class A .................................... 292,820 Printing and shareholder reports ..................................... 79,350 Transfer agent fees--Class A ......................................... 61,883 Registration fees .................................................... 29,790 Transfer agent fees--Class I ......................................... 15,946 Professional fees .................................................... 6,670 Directors' fees and expenses ......................................... 2,153 Other ................................................................ 15,551 ------------- Total expenses ....................................................... 1,005,060 ------------- Investment income--net ............................................... 2,560,128 ------------- ================================================================================================================================ Realized & Unrealized Gain (Loss) Allocated from the Series--Net - -------------------------------------------------------------------------------------------------------------------------------- Realized gain on investments, futures contracts and foreign currency transactions allocated from the Series--net ................ 19,293,872 Change in unrealized appreciation/depreciation on investments, futures contracts and foreign currency transactions allocated from the Series--net ................................................ 5,153,858 ------------- Total realized and unrealized gain allocated from the Series--net .... 24,447,730 ------------- Net Increase in Net Assets Resulting from Operations ................. $ 27,007,858 =============
See Notes to Financial Statements. 10 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Statements of Changes in Net Assets Merrill Lynch International Index Fund
For the Year Ended December 31, ------------------------------- Increase (Decrease) in Net Assets: 2004 2003 ================================================================================================================================ Operations - -------------------------------------------------------------------------------------------------------------------------------- Investment income--net ............................................... $ 2,560,128 $ 1,617,173 Realized gain allocated from the Series--net ......................... 19,293,872 1,174,159 Change in unrealized appreciation/depreciation allocated from the Series--net ......................................................... 5,153,858 31,536,922 ------------------------------- Net increase in net assets resulting from operations ................. 27,007,858 34,328,254 ------------------------------- ================================================================================================================================ Dividends to Shareholders - -------------------------------------------------------------------------------------------------------------------------------- Investment income--net: Class A ........................................................... (2,950,230) (1,886,754) Class I ........................................................... (872,106) (584,445) ------------------------------- Net decrease in net assets resulting from dividends to shareholders .. (3,822,336) (2,471,199) ------------------------------- ================================================================================================================================ Capital Share Transactions - -------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets derived from capital share transactions ... 14,346,422 17,281,079 ------------------------------- ================================================================================================================================ Redemption Fees - -------------------------------------------------------------------------------------------------------------------------------- Redemption fees ...................................................... 110 -- ------------------------------- ================================================================================================================================ Net Assets - -------------------------------------------------------------------------------------------------------------------------------- Total increase in net assets ......................................... 37,532,054 49,138,134 Beginning of year .................................................... 131,218,352 82,080,218 ------------------------------- End of year* ......................................................... $ 168,750,406 $ 131,218,352 =============================== * Undistributed (accumulated distributions in excess of) investment income--net .................................................... $ (214,966) $ 333,035 ===============================
See Notes to Financial Statements. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 11 [LOGO] Merrill Lynch Investment Managers Financial Highlights Merrill Lynch International Index Fund
Class A The following per share data and ratios have been derived ------------------------------------------------------------------ from information provided in the financial statements. For the Year Ended December 31, ------------------------------------------------------------------ Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000 ================================================================================================================================== Per Share Operating Performance - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year ... $ 9.56 $ 7.06 $ 8.62 $ 11.33 $ 15.13 ------------------------------------------------------------------ Investment income--net* .............. .17 .12 .11 .08 .09 Realized and unrealized gain (loss) allocated from the Series--net ...... 1.67 2.56 (1.53) (2.64) (2.80) ------------------------------------------------------------------ Total from investment operations ..... 1.84 2.68 (1.42) (2.56) (2.71) ------------------------------------------------------------------ Less dividends and distributions: Investment income--net ............ (.25) (.18) (.13) (.08) (.02) Realized gain allocated from the Series--net .................. -- -- (.01) (.07) (.53) In excess of realized gain allocated from the Series--net ... -- -- -- -- (.54) ------------------------------------------------------------------ Total dividends and distributions .... (.25) (.18) (.14) (.15) (1.09) ------------------------------------------------------------------ Net asset value, end of year ......... $ 11.15 $ 9.56 $ 7.06 $ 8.62 $ 11.33 ================================================================== ================================================================================================================================== Total Investment Return - ---------------------------------------------------------------------------------------------------------------------------------- Based on net asset value per share ... 19.46% 38.10% (16.21%) (22.60%) (18.00%) ================================================================== ================================================================================================================================== Ratios to Average Net Assets - ---------------------------------------------------------------------------------------------------------------------------------- Expenses, net of reimbursement** ..... .83% .87% .84% .89% .89% ================================================================== Expenses** ........................... .84% .88% .92% 1.05% .96% ================================================================== Investment income--net ............... 1.69% 1.59% 1.43% .82% .67% ================================================================== ================================================================================================================================== Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of year (in thousands) $132,873 $103,725 $ 62,310 $ 52,836 $ 46,623 ================================================================== Portfolio turnover of the Series ..... 13.50% 8.55% 19.52% 30.19% 5.89% ==================================================================
* Based on average shares outstanding. ** Includes the Fund's share of the Series' allocated expenses. See Notes to Financial Statements. 12 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Financial Highlights (concluded) Merrill Lynch International Index Fund
Class I The following per share data and ratios have been derived ------------------------------------------------------------------ from information provided in the financial statements. For the Year Ended December 31, ------------------------------------------------------------------ Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000 ================================================================================================================================== Per Share Operating Performance - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year ... $ 9.59 $ 7.08 $ 8.64 $ 11.36 $ 15.13 ------------------------------------------------------------------ Investment income--net* .............. .19 .15 .14 .12 .14 Realized and unrealized gain (loss) allocated from the Series--net ...... 1.69 2.56 (1.55) (2.67) (2.82) ------------------------------------------------------------------ Total from investment operations ..... 1.88 2.71 (1.41) (2.55) (2.68) ------------------------------------------------------------------ Less dividends and distributions: Investment income--net ............ (.28) (.20) (.14) (.10) (.02) Realized gain allocated from the Series--net ...................... -- -- (.01) (.07) (.53) In excess of realized gain allocated from the Series--net ... -- -- -- -- (.54) ------------------------------------------------------------------ Total dividends and distributions .... (.28) (.20) (.15) (.17) (1.09) ------------------------------------------------------------------ Net asset value, end of year ......... $ 11.19 $ 9.59 $ 7.08 $ 8.64 $ 11.36 ================================================================== ================================================================================================================================== Total Investment Return - ---------------------------------------------------------------------------------------------------------------------------------- Based on net asset value per share ... 19.78% 38.39% (16.06%) (22.45%) (17.80%) ================================================================== ================================================================================================================================== Ratios to Average Net Assets - ---------------------------------------------------------------------------------------------------------------------------------- Expenses, net of reimbursement** ..... .58% .62% .58% .64% .65% ================================================================== Expenses** ........................... .59% .62% .67% .81% .71% ================================================================== Investment income--net ............... 1.91% 1.86% 1.72% 1.18% 1.02% ================================================================== ================================================================================================================================== Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of year (in thousands) $ 35,878 $ 27,494 $ 19,770 $ 26,367 $ 37,387 ================================================================== Portfolio turnover of the Series ..... 13.50% 8.55% 19.52% 30.19% 5.89% ==================================================================
* Based on average shares outstanding. ** Includes the Fund's share of the Series' allocated expenses. See Notes to Financial Statements. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 13 [LOGO] Merrill Lynch Investment Managers 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 and strategies 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 U.S. generally accepted accounting principles, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The percentage of the Series owned by the Fund at December 31, 2004 was 52.5%. The Fund offers two classes of shares, Class A and Class I. 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. Income, expenses (other than expenses attributable to a specific class) and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets. The following is a summary of significant accounting policies followed by the Fund. (a) Valuation of investments -- 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. (g) Reclassifications -- U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, during the current year, $15,390,614 has been reclassified between accumulated realized net capital losses on investments and paid-in capital in excess of par, $122,658 has been reclassified between paid-in capital in excess of par and distributions in excess of net investment income and $591,549 has been reclassified between accumulated realized net capital losses on investments and distributions in excess of net investment income as a result of permanent differences attributable to net gains realized on the distributions of securities not recognized for tax purposes, gains from the sale of stock of passive foreign investment companies and foreign currency transactions. These reclassifications have no effect on net assets or net asset values per share. 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. 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 14 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Notes to Financial Statements (concluded) Merrill Lynch International Index Fund 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 $14,346,422 and $17,281,079 for the years ended December 31, 2004 and December 31, 2003, respectively. Transactions in capital shares for each class were as follows: - -------------------------------------------------------------------------------- Class A Shares for the Year Dollar Ended December 31, 2004 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 3,654,345 $ 36,576,564 Shares issued to shareholders in reinvestment of dividends ............. 275,250 2,883,058 ------------------------------ Total issued ............................. 3,929,595 39,459,622 Shares redeemed .......................... (2,861,982) (28,529,919) ------------------------------ Net increase ............................. 1,067,613 $ 10,929,703 ============================== - -------------------------------------------------------------------------------- Class A Shares for the Year Dollar Ended December 31, 2003 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 2,975,146 $ 23,547,146 Shares issued to shareholders in reinvestment of dividends .......... 202,586 1,844,036 ------------------------------ Total issued ............................. 3,177,732 25,391,182 Shares redeemed .......................... (1,149,582) (8,800,406) ------------------------------ Net increase ............................. 2,028,150 $ 16,590,776 ============================== - -------------------------------------------------------------------------------- Class I Shares for the Year Dollar Ended December 31, 2004 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 1,341,305 $ 13,457,624 Shares issued to shareholders in reinvestment of dividends ............. 76,845 811,131 ------------------------------ Total issued ............................. 1,418,150 14,268,755 Shares redeemed .......................... (1,078,351) (10,852,036) ------------------------------ Net increase ............................. 339,799 $ 3,416,719 ============================== - -------------------------------------------------------------------------------- Class I Shares for the Year Dollar Ended December 31, 2003 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 1,230,193 $ 9,731,216 Shares issued to shareholders in reinvestment of dividends .......... 58,415 534,392 ------------------------------ Total issued ............................. 1,288,608 10,265,608 Shares redeemed .......................... (1,214,268) (9,575,305) ------------------------------ Net increase ............................. 74,340 $ 690,303 ============================== Effective June 30, 2004, the Fund charges a 2% redemption fee on the proceeds (calculated at market value) of a redemption (either by sale or exchange) of Fund shares made within 30 days of purchase. The redemption fee is paid to the Fund and is intended to offset the trading costs, market impact and other costs associated with short-term trading into and out of the Fund. For the year ended December 31, 2004, the Fund charged redemption fees of $110. 4. Distributions to Shareholders The tax character of distributions paid during the fiscal years ended December 31, 2004 and December 31, 2003 was as follows: - -------------------------------------------------------------------------------- 12/31/2004 12/31/2003 - -------------------------------------------------------------------------------- Distributions paid from: Ordinary income ..................... $ 3,822,336 $ 2,471,199 ------------------------------- Total taxable distributions .............. $ 3,822,336 $ 2,471,199 =============================== As of December 31, 2004, the components of accumulated earnings on a tax basis were as follows: - ----------------------------------------------------------------------------- Undistributed ordinary income--net ...................... $ 585,666 Undistributed long-term capital gains--net .............. -- ------------ Total undistributed earnings--net ....................... 585,666 Capital loss carryforward ............................... (4,569,932)* Unrealized gains--net ................................... 25,216,361** ------------ Total accumulated earnings--net ......................... $ 21,232,095 ============ * On December 31, 2004, the Fund had a net capital loss carryforward of $4,569,932, all of which expires in 2010. This amount will be available to offset like amounts of any future taxable gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain foreign currency contracts, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies and other book/tax temporary differences. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 15 [LOGO] Merrill Lynch Investment Managers Report of Independent Registered Public Accounting Firm Merrill Lynch International Index Fund To the Shareholders and Board of Directors of Merrill Lynch Index Funds, Inc.: We have audited the accompanying statement of assets and liabilities of Merrill Lynch International Index Fund, one of the series constituting Merrill Lynch Index Funds, Inc. (the "Fund"), as of December 31, 2004, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Merrill Lynch International Index Fund of Merrill Lynch Index Funds, Inc. as of December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles. Deloitte & Touche LLP Princeton, New Jersey February 23, 2005 Important Tax Information The following information is provided with respect to the ordinary income distributions paid by Merrill Lynch International Index Fund during the fiscal year ended December 31, 2004: ================================================================================ Record Date July 21, 2004 December 16, 2004 Payable Date July 27, 2004 December 22, 2004 ================================================================================ Qualified Dividend Income for Individuals 14.79% 94.23%* - -------------------------------------------------------------------------------- Foreign Source Income 60.60% 77.87%* - -------------------------------------------------------------------------------- Foreign Taxes Paid Per Share -- $.020405 - -------------------------------------------------------------------------------- * Expressed as a percentage of the cash distribution grossed-up for foreign taxes. The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid are included in taxable income and may be either deducted from gross income or taken as a credit for taxes paid to foreign governments. You should consult your tax adviser regarding the appropriate treatment of foreign taxes paid. Please retain this information for your records. 16 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Summary Schedule of Investments Master International Index Series This summary schedule of investments is presented to help investors focus on the Series' principal holdings. It includes the Series' 50 largest holdings and each investment of any issuer that exceeds 1% of the Series' net assets. "Other Securities" represent all issues not required to be disclosed under the rules adopted by the Securities and Exchange Commission. A complete schedule of investments is available without charge, upon request, by calling 800-637-3863 or on the Securities and Exchange Commission's Web site at http://www.sec.gov.
Shares Value Percent of Industry* Held Common Stocks (in U.S. dollars) Net Assets =========================================================================================================================== Aerospace & Defense Other Securities $ 1,774,353 0.5% - --------------------------------------------------------------------------------------------------------------------------- Air Freight & Logistics Other Securities 1,220,617 0.4 - --------------------------------------------------------------------------------------------------------------------------- Airlines Other Securities 859,490 0.3 - --------------------------------------------------------------------------------------------------------------------------- Auto Components Other Securities 2,628,055 0.8 - --------------------------------------------------------------------------------------------------------------------------- Automobiles 30,782 DaimlerChrysler AG 1,475,293 0.4 27,400 Honda Motor Co., Ltd. 1,419,869 0.4 100,700 Toyota Motor Corp. 4,097,970 1.3 Other Securities 2,483,938 0.8 ---------------------------- 9,477,070 2.9 - --------------------------------------------------------------------------------------------------------------------------- Beverages 109,812 Diageo Plc 1,566,454 0.5 Other Securities 2,863,256 0.9 ---------------------------- 4,429,710 1.4 - --------------------------------------------------------------------------------------------------------------------------- Biotechnology Other Securities 415,284 0.1 - --------------------------------------------------------------------------------------------------------------------------- Building Products Other Securities 2,233,628 0.7 - --------------------------------------------------------------------------------------------------------------------------- Capital Markets 41,795 Credit Suisse Group (a) 1,756,926 0.6 17,874 Deutsche Bank AG Registered Shares 1,586,964 0.5 37,744 UBS AG Registered Shares 3,164,973 1.0 Other Securities 3,401,843 1.0 ---------------------------- 9,910,706 3.1 - --------------------------------------------------------------------------------------------------------------------------- Chemicals 18,105 BASF AG 1,304,288 0.4 Other Securities 7,643,946 2.4 ---------------------------- 8,948,234 2.8 - --------------------------------------------------------------------------------------------------------------------------- Commercial Banks 52,985 ABN AMRO Holding NV 1,403,667 0.5 28,297 BNP Paribas 2,050,061 0.6 97,327 Banco Bilbao Vizcaya Argentaria SA (a) 1,726,407 0.5 186,457 Banco Santander Central Hispano SA 2,313,922 0.7 231,125 Barclays Plc 2,600,300 0.8 139,659 HBOS Plc 2,273,756 0.7 395,750 HSBC Holdings Plc 6,678,652 2.1 190,856 Lloyds TSB Group Plc 1,733,189 0.6 156 Mitsubishi Tokyo Financial Group, Inc. 1,583,293 0.5 272 Mizuho Financial Group, Inc. 1,369,689 0.4 112,438 Royal Bank of Scotland Group Plc 3,782,041 1.2 Other Securities 22,270,978 6.9 ---------------------------- 49,785,955 15.5 - --------------------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies Other Securities 3,156,661 1.0 - --------------------------------------------------------------------------------------------------------------------------- Communications Equipment 161,627 Nokia Oyj Class A (b) 2,552,815 0.8 527,005 Telefonaktiebolaget LM Ericsson (a) 1,681,239 0.5 Other Securities 1,049,704 0.3 ---------------------------- 5,283,758 1.6 - --------------------------------------------------------------------------------------------------------------------------- Computers & Peripherals Other Securities 1,587,980 0.5 - --------------------------------------------------------------------------------------------------------------------------- Construction & Engineering Other Securities 2,218,314 0.7 - ---------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 17 [LOGO] Merrill Lynch Investment Managers Summary Schedule of Investments (continued) Master International Index Series
Shares Value Percent of Industry* Held Common Stocks (in U.S. dollars) Net Assets =========================================================================================================================== Construction Materials Other Securities $ 3,116,913 1.0% - --------------------------------------------------------------------------------------------------------------------------- Consumer Finance Other Securities 1,639,039 0.5 - --------------------------------------------------------------------------------------------------------------------------- Containers & Packaging Other Securities 604,901 0.2 - --------------------------------------------------------------------------------------------------------------------------- Distributors Other Securities 220,921 0.0 - --------------------------------------------------------------------------------------------------------------------------- Diversified Financial Services 63,707 ING Groep NV CVA 1,927,576 0.6 Other Securities 2,318,381 0.7 ---------------------------- 4,245,957 1.3 - --------------------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 99,024 Deutsche Telekom AG 2,241,062 0.7 Services 52,667 France Telecom SA 1,743,874 0.6 138,369 Telefonica SA 2,606,761 0.8 Other Securities 8,094,346 2.5 ---------------------------- 14,686,043 4.6 - --------------------------------------------------------------------------------------------------------------------------- Electric Utilities 21,220 E.On AG 1,934,230 0.6 Other Securities 8,304,517 2.6 ---------------------------- 10,238,747 3.2 - --------------------------------------------------------------------------------------------------------------------------- Electrical Equipment Other Securities 2,458,057 0.8 - --------------------------------------------------------------------------------------------------------------------------- Electronic Equipment & Instruments Other Securities 4,069,511 1.3 - --------------------------------------------------------------------------------------------------------------------------- Energy Equipment & Services Other Securities 208,482 0.0 - --------------------------------------------------------------------------------------------------------------------------- Food & Staples Retailing 277,338 Tesco Plc 1,713,196 0.5 Other Securities 4,982,017 1.6 ---------------------------- 6,695,213 2.1 - --------------------------------------------------------------------------------------------------------------------------- Food Products 14,464 Nestle SA Registered Shares 3,784,223 1.2 19,510 Unilever NV 1,308,180 0.4 Other Securities 4,258,316 1.3 ---------------------------- 9,350,719 2.9 - --------------------------------------------------------------------------------------------------------------------------- Gas Utilities Other Securities 2,012,810 0.6 - --------------------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies Other Securities 1,782,124 0.6 - --------------------------------------------------------------------------------------------------------------------------- Health Care Providers & Services Other Securities 759,345 0.2 - --------------------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure Other Securities 3,754,184 1.2 - --------------------------------------------------------------------------------------------------------------------------- Household Durables 80,000 Matsushita Electric Industrial Co., Ltd. 1,269,445 0.4 33,500 Sony Corp. 1,294,623 0.4 Other Securities 3,790,964 1.2 ---------------------------- 6,355,032 2.0 - --------------------------------------------------------------------------------------------------------------------------- Household Products Other Securities 1,203,699 0.4 - --------------------------------------------------------------------------------------------------------------------------- IT Services Other Securities 1,335,428 0.4 - --------------------------------------------------------------------------------------------------------------------------- Industrial Conglomerates 27,369 Siemens AG 2,320,617 0.7 Other Securities 2,069,171 0.7 ---------------------------- 4,389,788 1.4 - --------------------------------------------------------------------------------------------------------------------------- Insurance 53,086 AXA 1,311,817 0.4 11,277 Allianz AG Registered Shares 1,496,038 0.5 Other Securities 10,938,371 3.4 ---------------------------- 13,746,226 4.3 - --------------------------------------------------------------------------------------------------------------------------- Internet & Catalog Retail Other Securities 671,141 0.2 - --------------------------------------------------------------------------------------------------------------------------- Internet Software & Services Other Securities 738,599 0.2 - ---------------------------------------------------------------------------------------------------------------------------
18 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Summary Schedule of Investments (continued) Master International Index Series
Shares Value Percent of Industry* Held Common Stocks (in U.S. dollars) Net Assets =========================================================================================================================== Leisure Equipment & Products Other Securities $ 1,191,936 0.4% - --------------------------------------------------------------------------------------------------------------------------- Machinery Other Securities 4,523,726 1.4 - --------------------------------------------------------------------------------------------------------------------------- Marine Other Securities 833,517 0.2 - --------------------------------------------------------------------------------------------------------------------------- Media Other Securities 7,598,498 2.4 - --------------------------------------------------------------------------------------------------------------------------- Metals & Mining 137,224 BHP Billiton Ltd. 1,650,122 0.5 Other Securities 7,328,980 2.3 ---------------------------- 8,979,102 2.8 - --------------------------------------------------------------------------------------------------------------------------- Multi-Utilities & Unregulated Power Other Securities 3,342,863 1.0 - --------------------------------------------------------------------------------------------------------------------------- Multiline Retail Other Securities 1,437,649 0.4 - --------------------------------------------------------------------------------------------------------------------------- Office Electronics 30,000 Canon, Inc. 1,619,010 0.5 Other Securities 663,865 0.2 ---------------------------- 2,282,875 0.7 - --------------------------------------------------------------------------------------------------------------------------- Oil & Gas 762,276 BP Plc 7,434,554 2.3 3,849 BP Plc (b) 224,782 0.1 79,504 ENI SpA 1,990,572 0.6 75,688 Royal Dutch Petroleum Co. 4,356,921 1.4 354,749 Shell Transport & Trading Co. Plc 3,024,009 0.9 20,474 Total SA 4,472,165 1.4 Other Securities 3,768,267 1.1 ---------------------------- 25,271,270 7.8 - --------------------------------------------------------------------------------------------------------------------------- Paper & Forest Products Other Securities 1,555,647 0.5 - --------------------------------------------------------------------------------------------------------------------------- Personal Products Other Securities 1,139,877 0.3 - --------------------------------------------------------------------------------------------------------------------------- Pharmaceuticals 60,203 AstraZeneca Plc 2,183,379 0.7 210,736 GlaxoSmithKline Plc 4,944,119 1.5 800 GlaxoSmithKline Plc (b) 37,912 0.0 84,608 Novartis AG Registered Shares 4,263,511 1.3 24,793 Roche Holding AG 2,854,106 0.9 35,951 Sanofi-Aventis 2,873,343 0.9 31,000 Takeda Pharmaceutical Co., Ltd. 1,561,042 0.5 Other Securities 4,048,357 1.3 ---------------------------- 22,765,769 7.1 - --------------------------------------------------------------------------------------------------------------------------- Real Estate Other Securities 7,072,140 2.2 - --------------------------------------------------------------------------------------------------------------------------- Road & Rail Other Securities 2,957,655 0.9 - --------------------------------------------------------------------------------------------------------------------------- Semiconductors & Other Securities 2,300,350 0.7 Semiconductor Equipment - --------------------------------------------------------------------------------------------------------------------------- Software 7,588 SAP AG 1,355,258 0.4 Other Securities 1,465,474 0.5 ---------------------------- 2,820,732 0.9 - --------------------------------------------------------------------------------------------------------------------------- Specialty Retail Other Securities 2,786,130 0.9 - --------------------------------------------------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods Other Securities 2,698,029 0.8 - --------------------------------------------------------------------------------------------------------------------------- Thrifts & Mortgage Finance Other Securities 238,959 0.1 - --------------------------------------------------------------------------------------------------------------------------- Tobacco Other Securities 2,604,765 0.8 - --------------------------------------------------------------------------------------------------------------------------- Trading Companies & Distributors Other Securities 2,248,142 0.7 - --------------------------------------------------------------------------------------------------------------------------- Transportation Infrastructure Other Securities 2,174,776 0.7 - ---------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 19 [LOGO] Merrill Lynch Investment Managers Summary Schedule of Investments (continued) Master International Index Series
Shares Value Percent of Industry* Held Common Stocks (in U.S. dollars) Net Assets =========================================================================================================================== Water Utilities Other Securities $ 494,606 0.1% - --------------------------------------------------------------------------------------------------------------------------- Wireless Telecommunication Services 683 NTT DoCoMo Inc. 1,259,754 0.4 2,286,456 Vodafone Group Plc 6,200,551 1.9 12,490 Vodafone Group Plc (b) 341,976 0.1 Other Securities 1,556,740 0.5 ---------------------------- 9,359,021 2.9 - --------------------------------------------------------------------------------------------------------------------------- Total Investments in Common Stocks (Cost--$260,169,995) 316,890,728 98.4 =========================================================================================================================== Mutual Funds =========================================================================================================================== Diversified Financial Services Other Securities 320,100 0.1 - --------------------------------------------------------------------------------------------------------------------------- Total Investments in Mutual Funds (Cost--$232,840) 320,100 0.1 =========================================================================================================================== Preferred Stocks =========================================================================================================================== Automobiles Other Securities 328,469 0.2 - --------------------------------------------------------------------------------------------------------------------------- Chemicals Other Securities 246,013 0.0 - --------------------------------------------------------------------------------------------------------------------------- Health Care Providers & Services Other Securities 31,421 0.0 - --------------------------------------------------------------------------------------------------------------------------- Media Other Securities 101,144 0.0 - --------------------------------------------------------------------------------------------------------------------------- Multi-Utilities & Unregulated Power Other Securities 94,534 0.0 - --------------------------------------------------------------------------------------------------------------------------- Paper & Forest Products Other Securities 3,217 0.0 - --------------------------------------------------------------------------------------------------------------------------- Total Investments in Preferred Stocks (Cost--$684,752) 804,798 0.2 =========================================================================================================================== Warrants (c) =========================================================================================================================== Food & Staples Retailing Other Securities 20 0.0 - --------------------------------------------------------------------------------------------------------------------------- Real Estate Other Securities 16,629 0.0 - --------------------------------------------------------------------------------------------------------------------------- Total Investments in Warrants (Cost--$10,862) 16,649 0.0 =========================================================================================================================== Rights (d) =========================================================================================================================== Household Durables Other Securities 660 0.0 - --------------------------------------------------------------------------------------------------------------------------- Total Investments in Rights (Cost--$1,555) 660 0.0 ===========================================================================================================================
20 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Summary Schedule of Investments (continued) Master International Index Series
Beneficial Value Percent of Interest Short-Term Securities (in U.S. dollars) Net Assets ============================================================================================================================= $2,760,907 Merrill Lynch Liquidity Series, LLC Cash Sweep Series I (e) $ 2,760,907 0.9% - ----------------------------------------------------------------------------------------------------------------------------- Total Investments in Short-Term Securities (Cost--$2,760,907) 2,760,907 0.9 ============================================================================================================================= Total Investments (Cost--$263,860,911**) 320,793,842 99.6 Other Assets Less Liabilities 1,273,022 0.4 --------------------------- Net Assets $322,066,864 100.0% ===========================
"Other Securities" represent issues that are not identified as the largest 50 holdings of the Series and issues not exceeding 1% of net assets. * For Series compliance purposes, "Industry" means any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Series' management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease. These industry classifications are unaudited. ** The cost and unrealized appreciation/depreciation of investments as of December 31, 2004, as computed for federal income tax purposes, were as follows: Aggregate cost ..................................... $266,778,196 ============ Gross unrealized appreciation ...................... $ 61,477,825 Gross unrealized depreciation ...................... (7,462,179) ------------ Net unrealized appreciation ........................ $ 54,015,646 ============ (a) Non-income producing security. (b) Depositary Receipts. (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 1/07/2005. (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) were as follows:
-------------------------------------------------------------------------------------------- Net Interest Affiliate Activity Income -------------------------------------------------------------------------------------------- Merrill Lynch Liquidity Series, LLC Cash Sweep Series I $(7,159,850) $125,093 --------------------------------------------------------------------------------------------
Financial futures contracts purchased as of December 31, 2004 were as follows:
----------------------------------------------------------------------------------------------------------------------- Unrealized Number of Expiration Appreciation Contracts Issue Exchange Date Face Value (Depreciation) ----------------------------------------------------------------------------------------------------------------------- 1 CAC40 10 Euro Future Matif (Par) March 2005 $ 52,078 $ (53) 2 CAC40 10 Euro Future Matif (Par) January 2005 $ 103,887 (149) 4 DJ Euro Stoxx 50 Eurex March 2005 $ 159,827 456 13 Hang Seng Index Future Hong Kong January 2005 $1,188,774 555 12 IBEX 35 Plus Index Future Spanish Op January 2005 $1,454,865 20,709 15 OMX Stock Index Future Riyadh January 2005 $ 167,832 19 1 S&P/MIB Index Eurex March 2005 $ 210,652 (981) 2 SPI 200 Index Future Sydney March 2005 $ 159,401 (426) 25 TOPIX Index Future Tokyo March 2005 $2,691,129 108,471 ----------------------------------------------------------------------------------------------------------------------- Total Unrealized Appreciation--Net $128,601 ==========
MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 21 [LOGO] Merrill Lynch Investment Managers Summary Schedule of Investments (concluded) Master International Index Series Forward foreign exchange contracts as of December 31, 2004 were as follows:
---------------------------------------------------------------------------------------- Unrealized Foreign Currency Settlement Appreciation Purchased Date (Depreciation) ---------------------------------------------------------------------------------------- A$ 145,000 January 2005 $ 2,711 CHF 230,000 January 2005 (686) (E) 975,000 January 2005 15,532 (pound) 300,000 January 2005 (1,814) SEK 550,000 January 2005 313 (Y) 74,500,000 January 2005 7,657 ---------------------------------------------------------------------------------------- Total Unrealized Appreciation on Forward Foreign Exchange Contracts--Net (US$ Commitment--$3,003,395) $23,713 ==========
See Notes to Financial Statements. 22 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Statement of Assets and Liabilities Master International Index Series As of December 31, 2004 ================================================================================================================================ Assets - -------------------------------------------------------------------------------------------------------------------------------- Investments in unaffiliated securities, at value (including securities loaned of $3,117,973) (identified cost--$261,100,004) .... $ 318,032,935 Investments in affiliated securities, at value (identified cost--$2,760,907) ................................................... 2,760,907 Cash held as collateral for loaned securities ........................ 3,266,358 Cash on deposit for financial futures contracts ...................... 497,670 Foreign cash (cost--$1,625,645) ...................................... 1,673,195 Unrealized appreciation on forward foreign exchange contracts ........ 26,213 Receivables: Dividends ......................................................... $ 637,186 Contributions ..................................................... 543,132 Variation margin .................................................. 539,211 Forward foreign exchange contracts ................................ 68,770 Investment adviser ................................................ 9,691 Interest from affiliates .......................................... 5,093 Securities sold ................................................... 1,453 1,804,536 ------------- Prepaid expenses ..................................................... 3,465 ------------- Total assets ......................................................... 328,065,279 ------------- ================================================================================================================================ Liabilities - -------------------------------------------------------------------------------------------------------------------------------- Collateral on securities loaned, at value ............................ 3,266,358 Unrealized depreciation on forward foreign exchange contracts ........ 2,500 Payables: Withdrawals ....................................................... 2,297,120 Forward foreign exchange contracts ................................ 84,810 Securities purchased .............................................. 8,525 Other affiliates .................................................. 1,555 2,392,010 ------------- Accrued expenses and other liabilities ............................... 337,547 ------------- Total liabilities .................................................... 5,998,415 ------------- ================================================================================================================================ Net Assets - -------------------------------------------------------------------------------------------------------------------------------- Net assets ........................................................... $ 322,066,864 ============= ================================================================================================================================ Net Assets Consist of - -------------------------------------------------------------------------------------------------------------------------------- Investors' capital ................................................... $ 264,900,962 Unrealized appreciation .............................................. 57,165,902 ------------- Net Assets ........................................................... $ 322,066,864 =============
See Notes to Financial Statements. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 23 [LOGO] Merrill Lynch Investment Managers Statement of Operations Master International Index Series For the Year Ended December 31, 2004 ================================================================================================================================ Investment Income - -------------------------------------------------------------------------------------------------------------------------------- Dividends (net of $1,327,146 foreign withholding tax) ................ $ 12,086,551 Interest (including $125,093 from affiliates) ........................ 202,655 Securities lending--net .............................................. 178,484 ------------- Total income ......................................................... 12,467,690 ------------- ================================================================================================================================ Expenses - -------------------------------------------------------------------------------------------------------------------------------- Custodian fees ....................................................... $ 198,862 Accounting services .................................................. 72,367 Professional fees .................................................... 70,824 Pricing fees ......................................................... 59,733 Investment advisory fees ............................................. 47,035 Trustees' fees and expenses .......................................... 3,578 Printing and shareholder reports ..................................... 1,665 Other ................................................................ 27,288 ------------- Total expenses before reimbursement .................................. 481,352 Reimbursement of expenses ............................................ (40,784) ------------- Total expenses after reimbursement ................................... 440,568 ------------- Investment income--net ............................................... 12,027,122 ------------- ================================================================================================================================ Realized & Unrealized Gain (Loss)--Net - -------------------------------------------------------------------------------------------------------------------------------- Realized gain on: Investments--net .................................................. 49,709,523 Futures contracts--net ............................................ 1,150,260 Foreign currency transactions--net ................................ 769,014 51,628,797 ------------- Change in unrealized appreciation/depreciation on: Investments--net .................................................. 4,963,678 Futures contracts--net ............................................ (497,964) Foreign currency transactions--net ................................ (697,117) 3,768,597 ------------------------------ Total realized and unrealized gain--net .............................. 55,397,394 ------------- Net Increase in Net Assets Resulting from Operations ................. $ 67,424,516 =============
See Notes to Financial Statements. 24 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Statements of Changes in Net Assets Master International Index Series
For the Year Ended December 31, ------------------------------- Increase (Decrease) in Net Assets: 2004 2003 ================================================================================================================================ Operations - -------------------------------------------------------------------------------------------------------------------------------- Investment income--net ............................................... $ 12,027,122 $ 4,732,220 Realized gain (loss)--net ............................................ 51,628,797 (846,178) Change in unrealized appreciation/depreciation--net .................. 3,768,597 79,135,984 ------------------------------- Net increase in net assets resulting from operations ................. 67,424,516 83,022,026 ------------------------------- ================================================================================================================================ Capital Transactions - -------------------------------------------------------------------------------------------------------------------------------- Proceeds from contributions .......................................... 167,759,330 364,659,614 Fair value of withdrawals ............................................ (466,245,952) (61,373,002) ------------------------------- Net increase (decrease) in net assets derived from capital transactions ................................................ (298,486,622) 303,286,612 ------------------------------- ================================================================================================================================ Net Assets - -------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets .............................. (231,062,106) 386,308,638 Beginning of year .................................................... 553,128,970 166,820,332 ------------------------------- End of year .......................................................... $ 322,066,864 $ 553,128,970 ===============================
See Notes to Financial Statements. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 25 [LOGO] Merrill Lynch Investment Managers Financial Highlights Master International Index Series
For the Year Ended December 31, The following ratios have been derived ------------------------------------------------------------------ from information provided in the financial statements. 2004 2003 2002 2001 2000 ================================================================================================================================== Total Investment Return* - ---------------------------------------------------------------------------------------------------------------------------------- Total investment return .............. 20.32% 38.97% (15.81%) (21.77%) -- ================================================================== ================================================================================================================================== Ratios to Average Net Assets - ---------------------------------------------------------------------------------------------------------------------------------- Expenses, net of reimbursement ....... .09% .09% .08% .08% .08% ================================================================== Expenses ............................. .10% .10% .16% .39% 1.34% ================================================================== Investment income--net ............... 2.55% 2.23% 2.21% 1.20% 1.55% ================================================================== ================================================================================================================================== Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of year (in thousands) $322,067 $553,129 $166,820 $195,512 $ 15,763 ================================================================== Portfolio turnover ................... 13.50% 8.55% 19.52% 30.19% 5.89% ==================================================================
* Total return is required to be disclosed for fiscal years beginning after December 15, 2000. The Series' Investment Adviser has agreed to reimburse the Series for a portion of its expenses. Without such reimbursement, the Series' performance would have been lower. See Notes to Financial Statements. 26 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 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 U.S. generally accepted accounting principles, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The following is a summary of significant accounting policies followed by the Series. (a) Valuation of investments -- Equity securities that are held by the Series that are traded on stock exchanges or the Nasdaq National Market are valued at the last sale price or official close price on the exchange, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price for long positions, and at the last available ask price for short positions. In cases where equity securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by or under the authority of the Board of Trustees of the Trust. Long positions traded in the over-the-counter ("OTC") market, Nasdaq Small Cap or Bulletin Board are valued at the last available bid price or yield equivalent obtained from one or more dealers or pricing services approved by the Board of Trustees of the Trust. Short positions traded in the OTC market are valued at the last available ask price. Portfolio securities that are traded both in the OTC market and on a stock exchange are valued according to the broadest and most representative market. Options written are valued at the last sale price in the case of exchange-traded options or, in the case of options traded in the OTC market, the last ask price. Options purchased are valued at their last sale price in the case of exchange-traded options or, in the case of options traded in the OTC market, the last bid price. Swap agreements are valued daily based upon quotations from market makers. Financial futures contracts and options thereon, which are traded on exchanges, are valued at their last sale price as of the close of such exchanges. Obligations with remaining maturities of 60 days or less are valued at amortized cost unless the Investment Adviser believes that this method no longer produces fair valuations. Repurchase agreements are valued at cost plus accrued interest. The Series employs pricing services to provide certain securities prices for the Series. Securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Trustees of the Trust, including valuations furnished by the pricing services retained by the Series, which may use a matrix system for valuations. The procedures of a pricing service and its valuations are reviewed by the officers of the Series under the general supervision of the Trust's Board of Trustees. Such valuations and procedures will be reviewed periodically by the Board of Trustees of the Trust. Generally, trading in foreign securities, as well as U.S. government securities and money market instruments, is substantially completed each day at various times prior to the close of business on the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net assets of the Portfolio are determined as of such times. Foreign currency exchange rates also are generally determined prior to the close of business on the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that may not be reflected in the computation of the Series' net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such securities, those securities may be valued at their fair value as determined in good faith by the Trust's Board of Trustees or by the Investment Adviser using a pricing service and/or procedures approved by 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. Futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, the 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 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 27 [LOGO] Merrill Lynch Investment Managers Notes to Financial Statements (continued) Master International Index Series 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 may purchase and write call and put options. When the Series writes an option, an 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 may enter into forward foreign exchange contracts as a hedge against either specific transactions or portfolio positions. The contract is marked-to-market daily and the change in market value is recorded by the 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 partnership 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 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 Series and any additional required collateral is delivered to the Series 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 28 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Notes to Financial Statements (concluded) Master International Index Series 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 all expenses incurred by the Series will not exceed .12%. This arrangement has a one-year term and is renewable. For the year ended December 31, 2004, FAM reimbursed the Series in the amount of $40,784. Merrill Lynch, Pierce, Fenner & Smith Incorporated, a subsidiary of ML & Co., received $21 in commissions on the execution of portfolio security transactions for the Series for the year ended December 31, 2004. For the year ended December 31, 2004, the Series reimbursed FAM $10,318 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 year ended December 31, 2004 were $61,414,436 and $330,369,421, respectively. 4. Commitments: At December 31, 2004, 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 $79,000. 5. Short-Term Borrowings: The Trust, on behalf of the Series, along with certain other funds managed by FAM and its affiliates, is a party to a $500,000,000 credit agreement with a group of lenders. The Series may borrow under the credit agreement to fund shareholder 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 .07% 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 Series election, the federal funds rate plus .50% or a base rate as defined in the credit agreement. The Series did not borrow under the credit agreement during the year ended December 31, 2004. On November 26, 2004, the credit agreement was renewed for one year under substantially the same terms. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 29 [LOGO] Merrill Lynch Investment Managers Report of Independent Registered Public Accounting Firm Master International Index Series To the Investors and Board of Trustees of Quantitative Master Series Trust: We have audited the accompanying statement of assets and liabilities, including the summary schedule of investments, of Master International Index Series, one of the portfolios constituting the Quantitative Master Series Trust (the "Trust") as of December 31, 2004, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master International Index Series of the Quantitative Master Series Trust as of December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles. Deloitte & Touche LLP Princeton, New Jersey February 23, 2005 30 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Officers and Directors/Trustees
Number of Portfolios in Other Public Fund Complex Directorships Position(s) Length of Overseen by Held by Held with Time Director/ Director/ Name Address & Age Fund/Trust Served Principal Occupation(s) During Past 5 Years Trustee Trustee ==================================================================================================================================== Interested Director/Trustee - ------------------------------------------------------------------------------------------------------------------------------------ Terry K. P.O. Box 9011 President 2000 to President and Chairman of the Merrill Lynch Invest- 124 Funds None Glenn* Princeton, NJ and present ment Managers, L.P. ("MLIM")/Fund Asset 163 Portfolios 08543-9011 Director/ Management, L.P. ("FAM")-advised funds since Age: 64 Trustee 1999; Chairman (Americas Region) of MLIM from 2000 to 2002; Executive Vice President of MLIM and FAM (which terms as used herein include their corporate predecessors) from 1983 to 2002; President of FAM Distributors, Inc. ("FAMD") from 1986 to 2002 and Director thereof from 1991 to 2002; Executive Vice President and Director of Princeton Services, Inc. ("Princeton Services") from 1993 to 2002; President of Princeton Administrators, L.P. from 1989 to 2002; Director of Financial Data Services, Inc. since 1985. ------------------------------------------------------------------------------------------------------------------------ * Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which MLIM or FAM acts as investment adviser. Mr. Glenn is an "interested person" as described in the Investment Company Act, of the Fund based on his present and former positions with MLIM, FAM, FAMD, Princeton Services and Princeton Administrators, L.P. The Director's/Trustee's term is unlimited. Directors/Trustees serve until their resignation, removal, or death, or until December 31 of the year in which they turn 72. As Fund/Trust President, Mr. Glenn serves at the pleasure of the Board of Directors/Trustees. ==================================================================================================================================== Independent Directors/Trustees* - ------------------------------------------------------------------------------------------------------------------------------------ Donald W. P.O. Box 9095 Director/ 2002 to General Partner of The Burton Partnership, Limited 23 Funds ITC Delta- Burton Princeton, NJ Trustee present Partnership (an investment Partnership) since 1979; 42 Portfolios Com, Inc., 08543-9095 Managing General Partner of The South Atlantic Knology, Age: 60 Venture Funds since 1983; Member of the Investment Inc., Advisory Committee of the Florida State Board of Symbion, Inc. Administration since 2001. - ------------------------------------------------------------------------------------------------------------------------------------ M. Colyer P.O. Box 9095 Director/ 2000 to James R. Williston Professor of Investment 24 Funds Cambridge Crum Princeton, NJ Trustee present Management Emeritus, Harvard Business 43 Portfolios Bancorp 08543-9095 School since 1996; James R. Williston Professor Age: 72 of Investment Management, Harvard Business School from 1971 to 1996. - ------------------------------------------------------------------------------------------------------------------------------------ Laurie P.O. Box 9095 Director/ 2000 to Professor of Finance and Economics, Graduate 23 Funds None Simon Princeton, NJ Trustee present School of Business, Columbia University since 1998. 42 Portfolios Hodrick 08543-9095 Age: 42 - ------------------------------------------------------------------------------------------------------------------------------------ David H. P.O. Box 9095 Director/ 2003 to Consultant with Putnam Investments from 1993 to 23 Funds None Walsh Princeton, NJ Trustee present 2003 and employed in various capacities therewith 42 Portfolios 08543-9095 from 1973 to 1992; Director of the National Audubon Age: 63 Society since 1998; Director, The American Museum of Fly Fishing since 1997. - ------------------------------------------------------------------------------------------------------------------------------------ Fred G. P.O. Box 9095 Director/ 2000 to Managing Director of FGW Associates from 1993 23 Funds Watson Weiss Princeton, NJ Trustee present to 203 Vice President, Planning, Investment and 42 Portfolios Pharma- 08543-9095 Development of Warner Lambert Co. from 1979 to ceuticals, Age: 63 1997; Director of the Michael J. Fox Foundation for Inc. Parkinson's Research since 2000; Director of BTG International PLC (a global technology commercialization company) since 2001. ------------------------------------------------------------------------------------------------------------------------ * The Director's/Trustee's term is unlimited. Directors/Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 31 [LOGO] Merrill Lynch Investment Managers Officers and Directors/Trustees (concluded)
Position(s) Length of Held with Time Name Address & Age Fund/Trust Served Principal Occupation(s) During Past 5 Years ==================================================================================================================================== Fund/Trust Officers* - ------------------------------------------------------------------------------------------------------------------------------------ Donald C. P.O. Box 9011 Vice 1997 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof since 1999; Burke Princeton, NJ President present Senior Vice President and Treasurer of Princeton Services since 1999 and Director 08543-9011 and and since 2004; Vice President of FAMD since 1999; Vice President of MLIM and FAM from Age: 44 Treasurer 1999 to 1990 to 1997; Director of Taxation of MLIM from 1990 to 2001. present - ------------------------------------------------------------------------------------------------------------------------------------ Robert C. P.O. Box 9011 Senior Vice 1999 to President of MLIM/FAM-advised funds since 2005; President of MLIM and FAM since Doll, Jr. Princeton, NJ President present 2001; Co-Head (Americas Region) thereof from 2000 to 2001 and Senior Vice President 08543-9011 from 1999 to 2001; President and Director of Princeton Services, Inc. since 2001; Age: 50 President of Princeton Administrators, L.P. since 2001; Chief Investment Officer of Oppenheimer Funds, Inc. from 1991 to 1999. - ------------------------------------------------------------------------------------------------------------------------------------ Richard J. P.O. Box 9011 Vice 1999 to Managing Director and Head of Global Index and Enhanced Index products for Merrill Vella Princeton, NJ President present Lynch Quantitative Advisors since 1999; Managing Director and Head of the Global 08543-9011 Index and Enhanced Index business at Bankers Trust from 1984 to 1999. Age: 48 - ------------------------------------------------------------------------------------------------------------------------------------ Jeffrey P.O. Box 9011 Chief 2004 to Chief Compliance Officer of the MLIM/FAM-advised funds and First Vice President and Hiller Princeton, NJ Compliance present Chief Compliance Officer of MLIM since 2004; Global Director of Compliance at 08543-9011 Officer Morgan Stanley Investment Management from 2002 to 2004; Managing Director and Age: 53 Global Director of Compliance at Citigroup Asset Management from 2000 to 2002; Chief Compliance Officer at Soros Fund Management in 2000; Chief Compliance Officer at Prudential Financial from 1995 to 2000. - ------------------------------------------------------------------------------------------------------------------------------------ Alice A. P.O. Box 9011 Secretary 2004 to Secretary of MLIM, FAM, FAMD and Princeton Services since 2004; Director (Legal Pellegrino Princeton, NJ present Advisory) of MLIM since 2002; Vice President of MLIM from 1999 to 2002; Attorney 08543-9011 associated with MLIM since 1997. Age: 44 ------------------------------------------------------------------------------------------------------------------------ * Officers of the Fund/Trust serve at the pleasure of the Board of Directors/Trustees. - ------------------------------------------------------------------------------------------------------------------------------------ Further information about the Fund's Officers and Directors/Trustees is available in the Fund's Statement of Additional Information, which can be obtained without charge by calling 1-800-MER-FUND. - ------------------------------------------------------------------------------------------------------------------------------------
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 - -------------------------------------------------------------------------------- Effective January 1, 2005, Terry K. Glenn, President and Director/Trustee and M. Colyer Crum, Director/Trustee of Merrill Lynch Index Funds, Inc. and Quantitative Master Series Trust retired. The Fund's/Trust's Board of Directors/Trustees wishes Mr. Glenn and Professor Crum well in their retirements. Effective January 1, 2005, Robert C. Doll, Jr. became Executive Vice President and Chief Executive Officer of the Fund and the Trust. - -------------------------------------------------------------------------------- 32 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 Availability of Quarterly Schedule of Investments The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 33 [LOGO] Merrill Lynch Investment Managers Electronic Delivery The Fund offers electronic delivery of communications to its shareholders. In order to receive this service, you must register your account and provide us with e-mail information. To sign up for this service, simply access this Web site at http://www.icsdelivery.com/live and follow the instructions. When you visit this site, you will obtain a personal identification number (PIN). You will need this PIN should you wish to update your e-mail address, choose to discontinue this service and/or make any other changes to the service. This service is not available for certain retirement accounts at this time. 34 MERRILL LYNCH INTERNATIONAL INDEX FUND DECEMBER 31, 2004 [LOGO] Merrill Lynch Investment Managers www.mlim.ml.com This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund's current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2) at www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's Web site at http://www.sec.gov. Information about how the Fund voted proxies relating to securities held in the Fund's portfolio during the most recent 12-month period ended June 30 is available (1) at www.mutualfunds.ml.com and (2) on the Securities and Exchange Commission's Web site at http://www.sec.gov. Merrill Lynch Index Funds, Inc. Box 9011 Princeton, NJ 08543-9011 #Index 2 -- 12/04 Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of the end of the period covered by this report, that applies to the registrant's principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. A copy of the code of ethics is available without charge upon request by calling toll-free 1-800-MER-FUND (1-800-637-3863). Item 3 - Audit Committee Financial Expert - The registrant's board of directors has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: (1) Donald W. Burton, (2) M. Colyer Crum, (3) Laurie Simon Hodrick, (4) John F. O'Brien (as of November 22, 2004), (5) David H. Walsh and (6) Fred G. Weiss. The registrant's board of directors has determined that Laurie Simon Hodrick and M. Colyer Crum qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR. Ms. Hodrick has a thorough understanding of generally accepted accounting principals, financial statements, and internal controls and procedures for financial reporting. Ms. Hodrick earned a Ph.D. in economics and has taught courses in finance for over 15 years. Her M.B.A.-level course centers around the evaluation and analysis of firms' corporate financial statements. She has also taught in financial analysts' training programs. Ms. Hodrick has also worked with several prominent corporations in connection with the analysis of financial forecasts and projections and analysis of the financial statements of those companies, serving on the Financial Advisory Council of one of these major corporations. She has also served as the Treasurer and Finance Chair of a 501(c)(3) organization. Ms. Hodrick has published a number of articles in leading economic and financial journals and is the associate editor of two leading finance journals. M. Colyer Crum also possesses a thorough understanding of generally accepted accounting principals, financial statements, and internal controls and procedures for financial reporting through a combination of education and experience. Professor Crum was a professor of investment management at the Harvard Business School for 25 years. The courses taught by Professor Crum place a heavy emphasis on the analysis of underlying company financial statements with respect to stock selection and the analysis of credit risk in making loans. Professor Crum has also served on a number of boards of directors and has served on the audit committees, and in some cases chaired the audit committee, for several major corporations and financial institutions. For two such organizations, Professor Crum has performed extensive investment analysis of financial statements in connection with investment management decisions. From these experiences, he has gained significant experience with the establishment of reserves and accounting policies, differences between U.S. GAAP and Canadian GAAP and executive compensation issues. Item 4 - Principal Accountant Fees and Services International Index Fund of Merrill Lynch Index Funds, Inc. (a) Audit Fees - Fiscal Year Ending December 31, 2004 - $6,200 Fiscal Year Ending December 31, 2003 - $6,000 Master International Index Series of Quantitative Master Series Trust (a) Audit Fees - Fiscal Year Ending December 31, 2004 - $35,500 Fiscal Year Ending December 31, 2003 - $35,000 International Index Fund of Merrill Lynch Index Funds, Inc. (b) Audit-Related Fees - Fiscal Year Ending December 31, 2004 - $0 Fiscal Year Ending December 31, 2003 - $0 Master International Index Series of Quantitative Master Series Trust (b) Audit-Related Fees - Fiscal Year Ending December 31, 2004 - $0 Fiscal Year Ending December 31, 2003 - $0 International Index Fund of Merrill Lynch Index Funds, Inc. (c) Tax Fees - Fiscal Year Ending December 31, 2004 - $5,200 Fiscal Year Ending December 31, 2003 - $5,400 The nature of the services include tax compliance, tax advice and tax planning. Master International Index Series of Quantitative Master Series Trust (c) Tax Fees - Fiscal Year Ending December 31, 2004 - $15,000 Fiscal Year Ending December 31, 2003 - $16,000 The nature of the services include tax compliance, tax advice and tax planning. International Index Fund of Merrill Lynch Index Funds, Inc. (d) All Other Fees - Fiscal Year Ending December 31, 2004 - $0 Fiscal Year Ending December 31, 2003 - $0 Master International Index Series of Quantitative Master Series Trust (d) All Other Fees - Fiscal Year Ending December 31, 2004 - $0 Fiscal Year Ending December 31, 2003 - $0 (e)(1) The registrant's audit committee (the "Committee") has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant's affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC's auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis ("general pre-approval"). However, such services will only be deemed pre-approved provided that any individual project does not exceed $5,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. (e)(2) 0% (f) Not Applicable (g) Fiscal Year Ending December 31, 2004 - $11,926,355 Fiscal Year Ending December 31, 2003 - $18,621,495 (h) The registrant's audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. Regulation S-X Rule 2-01(c)(7)(ii) - $945,000, 0% Item 5 - Audit Committee of Listed Registrants - Not Applicable Item 6 - Schedule of Investments REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON DETAILED SCHEDULE OF INVESTMENTS To the Investors and Board of Trustees of Quantitative Master Series Trust: We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements of Master International Index Series (the "Series"), one of the portfolios constituting the Quantitative Master Series Trust (the "Trust") as of December 31, 2004, and for the year then ended and have issued our report thereon dated February , 2005, which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR. Our audit also included the Series' schedule of investments (the "Schedule") as of December 31, 2004 appearing in Item 6 of this Form N-CSR. This Schedule is the responsibility of the Trust's management. Our responsibility is to express an opinion based on our audit. In our opinion, the Schedule referred to above, when considered in relation to the basic financial statements taken as a whole of the Series referred to above, presents fairly, in all material respects, the information set forth therein. DELOITTE & TOUCHE LLP February 23, 2005 Master International Index Series Schedule of Investments as of December 31, 2004 (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Australia - 5.0% Airlines - 0.0% 31,700 Qantas Airways Ltd. $ 92,192 ----------------------------------------------------------------------------------------------------------------- Beverages - 0.2% 26,064 Coca-Cola Amatil Ltd. 166,109 86,856 Foster's Group Ltd. 394,220 8,843 Southcorp Ltd.(a) 29,738 ------------ 590,067 ----------------------------------------------------------------------------------------------------------------- Biotechnology - 0.0% 5,408 CSL Ltd. 124,000 ----------------------------------------------------------------------------------------------------------------- Capital Markets - 0.1% 8,347 Macquarie Bank Ltd. 304,259 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.1% 13,503 Orica Ltd. 215,616 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 1.4% 67,407 Australia & New Zealand Banking Group Ltd. 1,087,983 44,375 Commonwealth Bank of Australia 1,116,616 55,372 National Australia Bank Ltd. 1,250,964 66,143 Westpac Banking Corp. 1,010,547 ------------ 4,466,110 ----------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.1% 26,433 Brambles Industries Ltd. 144,010 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.0% 7,743 Leighton Holdings Ltd. 74,840 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.2% 19,286 Boral Ltd. 103,863 36,728 CSR Ltd. 76,584 3,992 James Hardie Industries NV 20,967 41,326 Rinker Group Ltd. 345,012 ------------ 546,426 ----------------------------------------------------------------------------------------------------------------- Containers & Packaging - 0.1% 41,043 Amcor Ltd. 236,476 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.1% 1,250 Australian Stock Exchange Ltd. 19,989 23,405 Suncorp-Metway Ltd. 318,874 ------------ 338,863 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 53,812 Telstra Corp. Ltd. 207,120 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.2% 46,196 Coles Myer Ltd. 357,061 32,686 Woolworths Ltd. 384,595 ------------ 741,656 ----------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.1% 20,590 Australian Gas Light Co., Ltd. 221,125 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.0% 7,344 Ansell Ltd. 51,410 ----------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.1% 40,746 Mayne Group Ltd. 136,068 2,368 Sonic Healthcare Ltd. 22,609 ------------ 158,677 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.1% 4,629 Aristocrat Leisure Ltd. 36,105 23,453 TABCORP Holdings Ltd. 317,873 ------------ 353,978 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.0% 11,639 Computershare Ltd. 51,732 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.2% 15,471 Wesfarmers Ltd. 482,683 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.3% 60,890 AMP Ltd. 346,532 45,366 AXA Asia Pacific Holdings Ltd. 145,806 69,692 Insurance Australia Group Ltd. 351,281 20,087 QBE Insurance Group Ltd. 241,704 ------------ 1,085,323 ----------------------------------------------------------------------------------------------------------------- Media - 0.0% 15,889 John Fairfax Holdings Ltd. 56,672 6,114 Publishing & Broadcasting Ltd. 83,873 ------------ 140,545 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.8% 52,998 Alumina Ltd. 246,778 137,224 BHP Billiton Ltd. 1,650,122 18,416 BlueScope Steel Ltd. 119,099 11,751 Newcrest Mining Ltd. 160,743 23,360 OneSteel Ltd. 47,062 9,648 Rio Tinto Ltd. 295,867 32,240 WMC Resources Ltd. 182,471 ------------ 2,702,142 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.1% 20,741 Origin Energy Ltd. 112,024 11,371 Santos Ltd. 75,588 13,785 Woodside Petroleum Ltd. 217,202 ------------ 404,814 ----------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 0.0% 5,300 PaperlinX Ltd. 19,610 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.6% 109,739 CFS Gandel Retail Trust 137,639 14,559 Centro Properties Group 65,967 79,688 General Property Trust 233,628 31,118 Investa Property Group 55,129 18,025 Lend Lease Corp., Ltd. 187,220 33,301 Macquarie Goodman Industrial Trust 61,868 46,449 Mirvac Group 178,414 60,690 Stockland 284,974 49,269 Westfield Group(a) 634,559 ------------ 1,839,398 ----------------------------------------------------------------------------------------------------------------- Road & Rail - 0.0% 15,831 Toll Holdings Ltd. 159,024 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.1% 86,634 Macquarie Infrastructure Group 230,902 16,500 Patrick Corp. Ltd. 85,108 10,811 Transurban Group 56,781 ------------ 372,791 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Australia 16,124,887 - ----------------------------------------------------------------------------------------------------------------------------------- Austria - 0.5% Building Products - 0.1% 3,535 Wienerberger AG 168,894 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.1% 1,063 Bank Austria Creditanstalt AG 96,085 5,448 Erste Bank der Oesterreichischen Sparkassen AG 291,024 ------------ 387,109 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.0% 53 RHI AG(a) 1,607 ----------------------------------------------------------------------------------------------------------------- Containers & Packaging - 0.0% 568 Mayr-Melnhof Karton AG 96,738 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 9,468 Telekom Austria AG 179,528 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.0% 47 Verbund - Oesterreichische Elektrizitaetswirtschafts AG 10,471 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Austria Metals & Mining - 0.0% 906 Boehler-Uddeholm AG $ 114,503 (concluded) ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.1% 447 OMV AG 134,695 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.0% 4,408 IMMOFINANZ Immobilien Anlagen AG(a) 42,181 ----------------------------------------------------------------------------------------------------------------- Trading Companies & Distributors - 0.1% 105,980 Hagemeyer NV - Registered Shrs 244,890 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.0% 1,169 Flughafen Wien AG 88,505 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Austria 1,469,121 - ----------------------------------------------------------------------------------------------------------------------------------- Belgium - 1.3% Beverages - 0.1% 4,637 InBev NV 179,883 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.1% 2,818 Solvay SA 310,260 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.3% 20,207 Dexia 464,731 4,674 KBC Bancassurance Holding 358,952 ------------ 823,683 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.0% 4,785 Suez SA(a) 65 ----------------------------------------------------------------------------------------------------------------- Distributors - 0.0% 222 D'ieteren SA 41,189 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.4% 39,701 Fortis 1,098,159 3,292 Groupe Bruxelles Lambert SA 268,032 ------------ 1,366,191 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 4,594 Belgacom SA(a) 198,572 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.1% 837 Electrabel 373,163 ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.0% 1,022 Bekaert SA 81,613 ----------------------------------------------------------------------------------------------------------------- Electronic Equipment & 520 Barco NV 48,098 Instruments - 0.0% ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.1% 1,003 Colruyt SA 163,054 932 Delhaize Group 70,879 950 Delhaize Group(b) 72,058 ------------ 305,991 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.0% 1,608 Omega Pharma SA 77,045 ----------------------------------------------------------------------------------------------------------------- Leisure Equipment & Products - 0.0% 2,040 AGFA-Gevaert NV 69,211 ----------------------------------------------------------------------------------------------------------------- Marine - 0.0% 1,790 Compagnie Maritime Belge SA (CMB) 49,999 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.0% 202 Umicore 19,014 52 Umicore 'STRIP'(a) 7 ------------ 19,021 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.0% 1,790 Euronav SA 46,471 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 0.1% 4,095 UCB SA 208,173 ----------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 900 Mobistar SA(a) 84,348 Services - 0.0% ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Belgium 4,282,976 - ----------------------------------------------------------------------------------------------------------------------------------- Bermuda - 0.0% Oil & Gas - 0.0% 531 Ship Finance International Ltd. 10,891 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Bermuda 10,891 - ----------------------------------------------------------------------------------------------------------------------------------- Denmark - 0.8% Beverages - 0.0% 356 Carlsberg A/S 18,019 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.0% 2,267 Novozymes A/S Class B(a) 115,161 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.2% 16,440 Danske Bank A/S 503,935 ----------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.1% 2,439 ISS A/S 136,155 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.0% 1,417 FLS Industries A/S Class B(a) 26,670 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 5,926 TDC A/S 250,953 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.0% 820 NKT Holding A/S 23,899 3,995 Vestas Wind Systems A/S(a) 49,640 ------------ 73,539 ----------------------------------------------------------------------------------------------------------------- Food Products - 0.1% 2,482 Danisco A/S 151,481 2,039 East Asiatic Co., Ltd. A/S 107,119 ------------ 258,600 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.0% 186 Coloplast A/S Class B 10,213 5,043 GN Store Nord 54,369 1,530 William Demant Holding(a) 71,851 ------------ 136,433 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.0% 464 Bang & Olufsen A/S Class B 34,678 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.0% 907 Topdanmark A/S(a) 71,432 ----------------------------------------------------------------------------------------------------------------- Marine - 0.1% 44 AP Moller - Maersk A/S 363,414 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 0.2% 3,519 H Lundbeck A/S 78,449 8,260 Novo-Nordisk A/S Class B 451,296 ------------ 529,745 ----------------------------------------------------------------------------------------------------------------- Road & Rail - 0.0% 1,730 DSV A/S 117,282 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Denmark 2,636,016 - ----------------------------------------------------------------------------------------------------------------------------------- Finland - 1.5% Auto Components - 0.0% 671 Nokian Renkaat Oyj 101,968 ----------------------------------------------------------------------------------------------------------------- Communications Equipment - 0.8% 1,270 Nokia Oyj (b) 19,901 161,627 Nokia Oyj Class A (b) 2,552,815 ------------ 2,572,716 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 5,791 Elisa Corp.(a) 93,355 Services - 0.1% 36,201 TeliaSonera AB 215,523 ------------ 308,878 ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.1% 8,990 Fortum Oyj 166,432 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.1% 4,144 Tietoenator Oyj 131,806 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.1% 6,594 Pohjola Group Plc Class D 76,095 9,526 Sampo Oyj 131,554 ------------ 207,649 ----------------------------------------------------------------------------------------------------------------- Leisure Equipment & Products - 0.0% 5,904 Amer Group 103,121 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.1% 2,211 Kone Oyj Class B 171,573 4,366 Metso Oyj 69,196 231 Wartsila Oyj 4,923 ------------ 245,692 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.0% 447 Outokumpu Oyj 7,990 8,196 Rautaruukki Oyj 97,367 ------------ 105,357 ----------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 0.2% 25,249 Stora Enso Oyj Class R 386,783 17,188 UPM-Kymmene Oyj 382,215 ------------ 768,998 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Finland 4,712,617 - -----------------------------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- France - 9.4% Aerospace & Defense - 0.2% 10,187 European Aeronautic Defense & Space Co. $ 296,180 4,303 Thales SA 206,581 986 Zodiac SA 45,903 ------------ 548,664 ----------------------------------------------------------------------------------------------------------------- Airlines - 0.0% 3,419 Air France-KLM 65,155 ----------------------------------------------------------------------------------------------------------------- Auto Components - 0.2% 4,708 Compagnie Generale des Etablissements Michelin 301,985 3,351 Valeo SA 140,289 ------------ 442,274 ----------------------------------------------------------------------------------------------------------------- Automobiles - 0.3% 5,945 Peugeot SA 377,371 7,187 Renault SA 601,277 ------------ 978,648 ----------------------------------------------------------------------------------------------------------------- Beverages - 0.1% 1,695 Pernod-Ricard 259,653 ----------------------------------------------------------------------------------------------------------------- Building Products - 0.2% 11,877 Cie de Saint-Gobain 715,494 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.2% 3,543 Air Liquide 654,952 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 1.2% 28,297 BNP Paribas 2,050,061 21,536 Credit Agricole SA 649,856 10,627 Societe Generale 1,075,411 ------------ 3,775,328 ----------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.0% 1,954 Societe BIC SA 98,271 ----------------------------------------------------------------------------------------------------------------- Communications Equipment - 0.2% 40,836 Alcatel SA(a) 635,547 4,730 Sagem SA(a) 100,811 ------------ 736,358 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.1% 2,440 Vinci SA 327,677 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.2% 1,192 Imerys SA 100,049 5,329 Lafarge SA 514,284 ------------ 614,333 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 52,667 France Telecom SA 1,743,874 Services - 0.5% ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.2% 111,163 Alstom(a) 84,615 8,706 Schneider Electric SA 605,882 ------------ 690,497 ----------------------------------------------------------------------------------------------------------------- Energy Equipment & Services - 0.0% 714 Technip SA 131,989 ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.3% 19,212 Carrefour SA 915,031 1,834 Casino Guichard Perrachon SA 146,580 ------------ 1,061,611 ----------------------------------------------------------------------------------------------------------------- Food Products - 0.2% 7,854 Groupe Danone 725,403 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.1% 3,031 Cie Generale d'Optique Essilor International SA 237,511 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.1% 6,164 Accor SA 269,869 5,111 Sodexho Alliance SA 154,643 ------------ 424,512 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.1% 7,780 Thomson 205,683 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.1% 1,852 Atos Origin SA(a) 125,791 3,475 Cap Gemini SA(a) 111,283 ------------ 237,074 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.4% 53,086 AXA 1,311,817 775 CNP Assurances 55,515 ------------ 1,367,332 ----------------------------------------------------------------------------------------------------------------- Media - 0.6% 5,229 Lagardere S.C.A. 377,409 4,855 Publicis Groupe 157,390 3,105 Societe Television Francaise 1 101,080 28,319 Vivendi Universal SA(a) 904,191 6,053 Vivendi Universal SA(a)(b) 194,120 ------------ 1,734,190 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.1% 16,250 Arcelor 374,830 ----------------------------------------------------------------------------------------------------------------- Multiline Retail - 0.1% 2,713 Pinault-Printemps-Redoute 271,595 ----------------------------------------------------------------------------------------------------------------- Multi-Utilities & Unregulated 25,778 Suez SA 687,460 Power - 0.3% 8,677 Veolia Environnement 314,080 ------------ 1,001,540 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 1.4% 20,474 Total SA 4,472,165 4,140 Total SA 'STRIP'(a) 56 ------------ 4,472,221 ----------------------------------------------------------------------------------------------------------------- Personal Products - 0.3% 11,713 L'Oreal SA 889,182 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 0.9% 35,951 Sanofi-Aventis 2,873,343 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.2% 880 Gecina SA 87,199 1,537 Klepierre 136,109 1,964 Unibail 309,136 ------------ 532,444 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 23,385 STMicroelectronics NV 456,130 Equipment - 0.2% ----------------------------------------------------------------------------------------------------------------- Software - 0.1% 2,821 Business Objects SA(a) 71,244 2,849 Dassault Systemes SA 143,670 ------------ 214,914 ----------------------------------------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods - 0.2% 189 Hermes International 37,713 9,557 LVMH Moet Hennessy Louis Vuitton SA 732,006 ------------ 769,719 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.0% 2,314 Autoroutes du Sud de la France 116,376 ----------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 8,764 Bouygues 405,024 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in France 30,153,801 - ----------------------------------------------------------------------------------------------------------------------------------- Germany - 6.8% Air Freight & Logistics - 0.1% 18,602 Deutsche Post AG 427,312 ----------------------------------------------------------------------------------------------------------------- Airlines - 0.0% 4,571 Deutsche Lufthansa AG 65,549 ----------------------------------------------------------------------------------------------------------------- Auto Components - 0.1% 3,882 Continental AG 246,576 ----------------------------------------------------------------------------------------------------------------- Automobiles - 0.6% 30,782 DaimlerChrysler AG 1,475,293 6,849 Volkswagen AG 310,472 ------------ 1,785,765 ----------------------------------------------------------------------------------------------------------------- Biotechnology - 0.0% 4,938 Qiagen NV(a) 54,031 ----------------------------------------------------------------------------------------------------------------- Capital Markets - 0.5% 17,874 Deutsche Bank AG Registered Shares 1,586,964 3,609 MLP AG 71,572 ------------ 1,658,536 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Germany Chemicals - 0.7% 18,105 BASF AG $ 1,304,288 (concluded) 21,327 Bayer AG 722,979 3,872 Linde AG 242,414 ------------ 2,269,681 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.3% 23,084 Bayerische Hypo-und Vereinsbank AG 523,995 15,285 Commerzbank AG(a) 314,966 15,198 Depfa Bank Plc 255,125 ------------ 1,094,086 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.1% 2,446 HeidelbergCement AG 147,285 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.1% 3,942 Deutsche Boerse AG 237,259 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 99,024 Deutsche Telekom AG 2,241,062 Services - 0.7% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.6% 21,220 E.ON AG 1,934,230 ----------------------------------------------------------------------------------------------------------------- Electronic Equipment & 2,386 Epcos AG(a) 35,675 Instruments - 0.0% ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.1% 6,372 Metro AG 350,690 ----------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.1% 1,654 Celesio AG 134,532 1,747 Fresenius Medical Care AG 140,601 ------------ 275,133 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.0% 3,494 TUI AG 82,731 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.7% 27,369 Siemens AG 2,320,617 860 Siemens AG(b) 72,816 ------------ 2,393,433 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.7% 11,277 Allianz AG Registered Shares 1,496,038 6,120 Muenchener Rueckversicherungs AG Registered Shares 752,418 ------------ 2,248,456 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.1% 4,614 MAN AG 177,737 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.1% 13,676 ThyssenKrupp AG 301,143 ----------------------------------------------------------------------------------------------------------------- Multi-Utilities & Unregulated 14,063 RWE AG 777,986 Power - 0.3% ----------------------------------------------------------------------------------------------------------------- Personal Products - 0.0% 572 Beiersdorf AG 66,553 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 0.2% 3,250 Altana AG 205,461 2,378 Merck KGaA 163,619 5,137 Schering AG 384,105 ------------ 753,185 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 21,933 Infineon Technologies AG(a) 237,903 Equipment - 0.1% ----------------------------------------------------------------------------------------------------------------- Software - 0.4% 7,588 SAP AG 1,355,258 ----------------------------------------------------------------------------------------------------------------- Specialty Retail - 0.0% 1,160 Douglas Holding AG 40,995 ----------------------------------------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods - 0.1% 1,332 Adidas-Salomon AG 214,999 481 Puma AG Rudolf Dassler Sport 132,264 ------------ 347,263 ----------------------------------------------------------------------------------------------------------------- Thrifts & Mortgage Finance - 0.1% 5,764 Hypo Real Estate Holding AG(a) 238,959 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Germany 21,844,472 - ----------------------------------------------------------------------------------------------------------------------------------- Greece - 0.6% Beverages - 0.0% 5,327 Coca Cola Hellenic Bottling Co. SA 130,333 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.3% 5,222 Alpha Bank AE 182,135 8,873 EFG Eurobank Ergasias SA 304,651 1,938 Emporiki Bank of Greece SA 61,536 8,958 National Bank of Greece SA 295,637 3,787 Piraeus Bank SA 66,197 ------------ 910,156 ----------------------------------------------------------------------------------------------------------------- Communications Equipment - 0.0% 13,744 Intracom SA 74,352 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.0% 9,858 Technical Olympic SA 53,330 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.0% 2,682 Titan Cement Co. SA 79,472 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 6,542 Hellenic Telecommunications Organization SA 117,555 Services - 0.0% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.1% 5,616 Public Power Corp. 157,098 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.1% 6,153 OPAP SA 170,113 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.0% 4,057 Viohalco, Hellenic Copper and Aluminum Industry SA 36,947 ----------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 6,600 Cosmote Mobile Telecommunications SA 132,054 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Greece 1,861,410 - ----------------------------------------------------------------------------------------------------------------------------------- Hong Kong - 1.3% Airlines - 0.0% 2,263 Cathay Pacific Airways Ltd. 4,280 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.2% 81,400 BOC Hong Kong Holdings Ltd. 155,517 29,739 Bank of East Asia Ltd. 92,400 19,153 Hang Seng Bank Ltd. 266,127 ------------ 514,044 ----------------------------------------------------------------------------------------------------------------- Distributors - 0.0% 52,719 Li & Fung Ltd. 88,852 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.0% 20,000 Hong Kong Exchanges and Clearing Ltd. 53,521 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 71,195 PCCW Ltd. 45,111 Services - 0.0% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.2% 50,187 CLP Holdings Ltd. 288,620 56,000 HongKong Electric Holdings 255,767 ------------ 544,387 ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.0% 94,328 Johnson Electric Holdings Ltd. 91,625 ----------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.1% 104,240 Hong Kong & China Gas Company Ltd. 215,247 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.0% 24,990 Shangri-La Asia Ltd. 35,848 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.0% 16,560 Techtronic Industries Co. 36,112 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.2% 59,989 Hutchison Whampoa Ltd. 561,478 ----------------------------------------------------------------------------------------------------------------- Media - 0.0% 34,025 SCMP Group Ltd. 14,117 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.5% 42,735 Cheung Kong Holdings Ltd. 426,102 12,000 Hang Lung Properties Ltd. 18,526 32,491 Henderson Land Development Co., Ltd. 168,878 47,890 New World Development Ltd. 53,603 48,421 Sino Land Co. 47,657 36,324 Sun Hung Kai Properties Ltd. 363,347 31,577 Swire Pacific Ltd. Class A 264,066 56,107 Wharf Holdings Ltd. 196,342 ------------ 1,538,521 ----------------------------------------------------------------------------------------------------------------- Road & Rail - 0.0% 24,500 MTR Corp. 39,243 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 5,004 ASM Pacific Technology 18,026 Equipment - 0.0% ----------------------------------------------------------------------------------------------------------------- Specialty Retail - 0.1% 22,000 Esprit Holdings Ltd. 133,030 132,394 Giordano International Ltd. 83,037 ------------ 216,067 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Hong Kong Textiles, Apparel & Luxury Goods - 0.0% 65,353 Texwinca Holdings Ltd. $ 61,799 (concluded) 21,785 Yue Yuen Industrial Holdings 59,979 ------------ 121,778 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.0% 18,465 Hopewell Holdings 47,394 ----------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 47,000 Hutchison Telecommunications Services - 0.0% International Ltd.(a) 42,328 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Hong Kong 4,227,979 - ----------------------------------------------------------------------------------------------------------------------------------- Ireland - 0.9% Airlines - 0.1% 27,680 Ryanair Holdings Plc(a) 197,526 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.3% 27,822 Allied Irish Banks Plc 580,492 30,928 Bank of Ireland 512,133 ------------ 1,092,625 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.2% 17,002 CRH Plc 455,241 ----------------------------------------------------------------------------------------------------------------- Food Products - 0.1% 22,304 Greencore Group Plc 91,556 4,710 Kerry Group Plc 112,996 ------------ 204,552 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.0% 25,516 Waterford Wedgwood Plc(a) 2,150 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.0% 3,189 DCC Plc 71,522 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.1% 12,684 Irish Life & Permanent Plc 237,922 ----------------------------------------------------------------------------------------------------------------- Media - 0.0% 21,817 Independent News & Media Plc 68,799 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 0.1% 15,345 Elan Corp. Plc(a) 408,811 ----------------------------------------------------------------------------------------------------------------- Trading Companies & Distributors - 0.0% 2,786 Grafton Group Plc 30,295 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Ireland 2,769,443 - ----------------------------------------------------------------------------------------------------------------------------------- Italy - 4.3% Aerospace & Defense - 0.1% 312,371 Finmeccanica SpA 282,862 ----------------------------------------------------------------------------------------------------------------- Automobiles - 0.0% 12,307 Fiat SpA(a) 98,697 ----------------------------------------------------------------------------------------------------------------- Capital Markets - 0.2% 10,234 Banca Fideuram SpA 52,999 22,588 Mediobanca SpA 365,670 17,230 Mediolanum SpA 123,399 ------------ 542,068 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 1.1% 11,662 Banca Antonveneta SpA(a) 307,520 110,210 Banca Intesa SpA 530,302 36,404 Banca Intesa SpA-RNC 156,364 52,096 Banca Monte dei Paschi di Siena SpA 185,880 29,459 Banca Nazionale del Lavoro SpA(a) 87,852 16,065 Banca Popolare di Milano SCRL 142,395 13,238 Banco Popolare di Verona e Novara Scrl 269,186 16,381 Banche Popolari Unite Scrl 332,942 43,545 Capitalia SpA 199,525 27,091 Sanpaolo IMI SpA 390,335 136,509 UniCredito Italiano SpA 784,876 ------------ 3,387,177 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.0% 5,565 Italcementi SpA 89,613 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.0% 4,347 FinecoGroup SpA 33,573 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 278,521 Telecom Italia SpA 1,139,525 Services - 0.6% 258,085 Telecom Italia SpA-RNC 837,364 ------------ 1,976,889 ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.4% 116,406 Enel SpA 1,144,124 ----------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.0% 21,946 Snam Rete Gas SpA 127,673 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.0% 4,473 Autogrill SpA(a) 74,741 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.1% 119,974 Pirelli & C SpA 161,770 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.5% 23,052 Alleanza Assicurazioni SpA 321,794 29,685 Assicurazioni Generali SpA 1,007,523 11,651 Riunione Adriatica di Sicurta SpA 263,521 ------------ 1,592,838 ----------------------------------------------------------------------------------------------------------------- Internet Software & Services - 0.0% 170,961 Telecom Italia Media SpA(a) 77,359 2,170 Tiscali SpA(a) 8,064 ------------ 85,423 ----------------------------------------------------------------------------------------------------------------- Media - 0.1% 5,198 Arnoldo Mondadori Editore SpA 59,914 13,547 Gruppo Editoriale L'Espresso SpA 81,757 18,663 Mediaset SpA 236,680 171,874 Seat Pagine Gialle SpA 79,150 ------------ 457,501 ----------------------------------------------------------------------------------------------------------------- Multi-Utilities & Unregulated 16,589 Edison SpA(a) 35,379 Power - 0.0% ----------------------------------------------------------------------------------------------------------------- Multiline Retail - 0.0% 5,245 Rinascente SpA(a) 3,565 5,245 Rozzano - ------------ 3,565 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.7% 79,504 ENI SpA 1,990,572 1,875 ENI SpA(b) 235,950 ------------ 2,226,522 ----------------------------------------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods - 0.1% 5,296 Benetton Group SpA 70,100 9,894 Bulgari SpA 122,246 4,858 Luxottica Group SpA 99,016 ------------ 291,362 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.1% 9,895 Autostrade SpA 264,961 ----------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 119,449 TIM SpA 892,986 Services - 0.3% ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Italy 13,769,724 - ----------------------------------------------------------------------------------------------------------------------------------- Japan - 21.1% Air Freight & Logistics - 0.0% 11,000 Yamato Transport Co., Ltd. 163,170 ----------------------------------------------------------------------------------------------------------------- Airlines - 0.0% 28,000 Japan Airlines Corp. 81,155 ----------------------------------------------------------------------------------------------------------------- Auto Components - 0.5% 3,200 Aisin Seiki Co., Ltd. 81,038 21,000 Bridgestone Corp. 418,074 20,600 Denso Corp. 551,840 1,000 NGK Spark Plug Co., Ltd. 10,354 4,000 NOK Corp. 125,305 12,000 Sanden Corp. 74,246 7,000 Stanley Electric Co., Ltd. 119,957 1,000 Toyoda Gosei Co., Ltd. 20,347 8,000 Toyota Industries Corp. 199,863 ------------ 1,601,024 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Japan Automobiles - 2.1% 27,400 Honda Motor Co., Ltd. $ 1,419,869 (continued) 88,400 Nissan Motor Co., Ltd. 961,038 100,700 Toyota Motor Corp. 4,097,970 9,000 Yamaha Motor Co., Ltd. 135,083 ------------ 6,613,960 ----------------------------------------------------------------------------------------------------------------- Beverages - 0.2% 9,000 Asahi Breweries Ltd. 111,457 25,000 Kirin Brewery Co., Ltd. 246,170 27,000 Sapporo Holdings Ltd. 127,794 13,000 Takara Holdings Inc. 84,620 ------------ 570,041 ----------------------------------------------------------------------------------------------------------------- Building Products - 0.3% 21,000 Asahi Glass Co., Ltd. 231,580 2,000 Central Glass Co., Ltd. 14,170 5,000 Daikin Industries Ltd. 144,433 11,000 JS Group Corp. 199,776 24,000 Nippon Sheet Glass Co., Ltd. 99,307 9,000 Toto Ltd. 85,898 ------------ 775,164 ----------------------------------------------------------------------------------------------------------------- Capital Markets - 0.5% 35,000 Daiwa Securities Group Inc. 252,757 1,100 Jafco Co., Ltd. 74,715 44,000 Nikko Cordial Corp. 233,161 65,000 Nomura Holdings Inc. 947,692 ------------ 1,508,325 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.9% 53,000 Asahi Kasei Corp. 265,336 3,000 Daicel Chemical Industries Ltd. 16,981 30,000 Dainippon Ink and Chemicals Inc. 69,093 3,000 Denki Kagaku Kogyo Kabushiki Kaisha 9,983 2,500 Hitachi Chemical Co., Ltd. 44,745 11,000 Ishihara Sangyo Kaisha Ltd. 25,227 4,000 JSR Corp. 87,635 13,000 Kaneka Corp. 147,165 18,000 Kuraray Co., Ltd. 161,433 42,000 Mitsubishi Chemical Corp. 127,881 18,000 Mitsubishi Gas Chemical Co., Inc. 84,844 1,000 Mitsubishi Rayon Co., Ltd. 3,640 13,000 Mitsui Chemicals Inc. 70,791 12,000 Nissan Chemical Industries Ltd. 94,506 5,110 Nitto Denko Corp. 280,260 11,600 Shin-Etsu Chemical Co., Ltd. 475,456 18,000 Showa Denko KK 46,375 14,000 Sumitomo Bakelite Co., Ltd. 88,397 54,000 Sumitomo Chemical Co., Ltd. 264,546 38,000 Teijin Ltd. 165,024 49,000 Toray Industries Inc. 229,531 6,000 Tosoh Corp. 26,993 57,000 Ube Industries Ltd. 96,233 ------------ 2,882,075 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 2.1% 12,000 The 77 Bank Ltd. 84,434 31,000 The Bank of Fukuoka Ltd. 204,206 31,000 The Bank of Yokohama Ltd.(a) 195,433 31,000 The Chiba Bank Ltd. 207,231 13,000 The Gunma Bank Ltd. 75,486 17,000 Hokuhoku Financial Group Inc. 46,453 23,000 The Joyo Bank Ltd. 112,228 156 Mitsubishi Tokyo Financial Group Inc. 1,583,293 23,000 Mitsui Trust Holdings Inc. 229,843 272 Mizuho Financial Group Inc. 1,369,689 141,000 Resona Holdings Inc.(a) 286,211 10,000 Shinsei Bank Ltd. 68,118 26,000 The Shizuoka Bank Ltd. 246,375 139 Sumitomo Mitsui Financial Group Inc. 1,010,588 35,000 The Sumitomo Trust & Banking Co., Ltd. 253,098 4,000 Suruga Bank Ltd. 31,931 130 UFJ Holdings Inc. 787,840 ------------ 6,792,457 ----------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.3% 2,000 Benesse Corp. 70,069 26,000 Dai Nippon Printing Co., Ltd. 417,137 5,000 Kokuyo Co., Ltd. 60,359 500 Meitec Corp. 18,640 117 Rakuten Inc.-When Issued(a) 105,045 6,000 Secom Co., Ltd. 240,070 15,000 Toppan Printing Co., Ltd. 166,439 ------------ 1,077,759 ----------------------------------------------------------------------------------------------------------------- Computers & Peripherals - 0.4% 69,000 Fujitsu Ltd. 449,136 52,000 NEC Corp. 323,256 4,300 Seiko Epson Corp. 191,354 93,000 Toshiba Corp. 399,336 ------------ 1,363,082 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.2% 9,457 COMSYS Holdings Corp. 87,584 3,000 JGC Corp. 27,432 46,000 Kajima Corp. 197,970 9,000 Kinden Corp. 67,278 14,000 Nishimatsu Construction Co., Ltd. 48,775 25,000 Obayashi Corp. 157,607 16,000 Shimizu Corp. 80,258 15,000 Taisei Corp. 58,407 3,000 Toda Corp. 14,638 ------------ 739,949 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Japan Construction Materials - 0.1% 34,000 Sumitomo Osaka Cement Co., Ltd. $ 83,283 (continued) 47,000 Taiheiyo Cement Corp. 116,961 ------------ 200,244 ----------------------------------------------------------------------------------------------------------------- Consumer Finance - 0.4% 3,100 Acom Co., Ltd. 232,039 500 Aeon Credit Service Co., Ltd. 37,230 1,850 Aiful Corp. 203,469 3,300 Credit Saison Co., Ltd. 120,123 2,700 ORIX Corp. 366,781 3,550 Promise Co., Ltd. 253,596 2,820 Takefuji Corp. 190,715 ------------ 1,403,953 ----------------------------------------------------------------------------------------------------------------- Containers & Packaging - 0.0% 5,000 Toyo Seikan Kaisha Ltd. 92,222 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 166 Nippon Telegraph & Telephone Corp. 745,194 Services - 0.2% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 1.0% 25,100 Chubu Electric Power Co., Inc. 602,576 9,900 Electric Power Development Co. 277,281 6,000 Hokkaido Electric Power Co. Inc. 117,986 28,200 The Kansai Electric Power Co., Inc. 572,421 16,400 Kyushu Electric Power Co., Inc. 331,297 17,600 Tohoku Electric Power Co. Inc. 316,034 39,700 The Tokyo Electric Power Co. Inc. 974,388 ------------ 3,191,983 ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.3% 21,000 Fujikura Ltd. 96,731 30,000 Furukawa Electric Co., Ltd.(a) 166,293 13,873 Matsushita Electric Works Ltd. 120,900 68,000 Mitsubishi Electric Corp. 333,132 29,000 Sumitomo Electric Industries Ltd. 315,556 3,000 Ushio Inc. 56,065 ------------ 1,088,677 ----------------------------------------------------------------------------------------------------------------- Electronic Equipment & 3,000 Alps Electric Co., Ltd. 44,706 Instruments - 1.2% 4,000 Citizen Watch Co., Ltd. 38,450 15,000 Dainippon Screen Manufacturing Co., Ltd. 92,076 1,500 Hirose Electric Co., Ltd. 175,368 119,000 Hitachi Ltd. 824,534 3,400 Hoya Corp. 383,898 900 Keyence Corp. 201,659 6,100 Kyocera Corp. 469,689 1,200 Mabuchi Motor Co., Ltd. 86,542 8,400 Murata Manufacturing Co., Ltd. 469,718 1,900 Nidec Corp. 231,590 33,000 Oki Electric Industry Co., Ltd.(a) 142,022 10,000 Omron Corp. 238,606 3,800 TDK Corp. 281,468 3,000 Yokogawa Electric Corp. 40,109 ------------ 3,720,435 ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.5% 18,000 Aeon Co., Ltd. 300,381 3,900 FamilyMart Co., Ltd. 113,609 11,000 Ito-Yokado Co., Ltd. 461,599 2,400 Lawson Inc. 88,533 3,200 Matsumotokiyoshi Co., Ltd. 91,188 14,000 Seven-Eleven Japan Co., Ltd. 441,300 4,000 UNY Co., Ltd. 45,711 ------------ 1,542,321 ----------------------------------------------------------------------------------------------------------------- Food Products - 0.2% 17,000 Ajinomoto Co. Inc. 202,401 3,000 Kikkoman Corp. 28,603 1,000 Nichirei Corp. 3,982 2,000 Nippon Meat Packers Inc. 27,110 11,000 Nisshin Seifun Group Inc. 121,948 5,300 Nissin Food Products Co., Ltd. 132,927 18,000 Snow Brand Milk Products Co., Ltd.(a) 55,333 3,000 Yakult Honsha Co., Ltd. 53,401 7,000 Yamazaki Baking Co., Ltd. 65,170 ------------ 690,875 ----------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.2% 86,000 Osaka Gas Co., Ltd. 268,566 78,000 Tokyo Gas Co., Ltd. 319,703 ------------ 588,269 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.1% 6,000 Olympus Corp. 127,940 4,100 Terumo Corp. 110,432 ------------ 238,372 ----------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.0% 200 Nichii Gakkan Co. 6,480 1,000 Suzuken Co., Ltd. 26,837 ------------ 33,317 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.0% 1,900 Oriental Land Co., Ltd. 132,019 2,000 Skylark Co., Ltd. 34,391 ------------ 166,410 ----------------------------------------------------------------------------------------------------------------- Household Durables - 1.2% 2,000 Casio Computer Co., Ltd. 30,858 2,000 Daito Trust Construction Co., Ltd. 95,052 13,000 Daiwa House Industry Co., Ltd. 147,799 1,000 Makita Corp. 17,488 80,000 Matsushita Electric Industrial Co., Ltd. 1,269,445 3,800 Pioneer Corp. 74,168 41,000 Sanyo Electric Co., Ltd. 141,641 20,000 Sekisui Chemical Co., Ltd. 146,189 12,000 Sekisui House Ltd. 139,826 31,000 Sharp Corp. 506,129 33,500 Sony Corp. 1,294,623 ------------ 3,863,218 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Japan Household Products - 0.2% 17,000 Kao Corp. $ 434,664 (continued) 2,400 Uni-Charm Corp. 115,000 ------------ 549,664 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.2% 3,100 CSK Corp. 140,373 400 Itochu Techno-Science Corp. 16,005 8 NET One Systems Co., Ltd. 33,337 57 NTT Data Corp. 184,122 1,500 Nomura Research Institute Ltd. 140,529 100 Obic Co., Ltd. 19,859 400 TIS Inc. 17,527 ------------ 551,752 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.5% 50 Millea Holdings Inc. 741,680 41,000 Mitsui Sumitomo Insurance Co., Ltd. 356,104 29,000 Sompo Japan Insurance Inc. 295,462 7,250 T&D Holdings Inc. 346,687 ------------ 1,739,933 ----------------------------------------------------------------------------------------------------------------- Internet & Catalog Retail - 0.0% 13 Rakuten Inc. 14,843 ----------------------------------------------------------------------------------------------------------------- Internet Software & Services - 0.2% 7,300 Softbank Corp. 355,489 62 Yahoo! Japan Corp.(a) 297,687 ------------ 653,176 ----------------------------------------------------------------------------------------------------------------- Leisure Equipment & Products - 0.3% 2,100 Bandai Co., Ltd. 47,751 15,000 Fuji Photo Film Co., Ltd. 547,477 1,400 Sankyo Co., Ltd. 70,772 2,784 Sega Sammy Holdings Inc. 152,961 3,500 Shimano Inc. 99,907 6,600 Yamaha Corp. 100,736 ------------ 1,019,604 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.7% 20,000 Amada Co., Ltd. 110,471 22,000 Ebara Corp. 101,552 4,100 Fanuc Ltd. 268,078 5,000 Hino Motors Ltd. 37,133 13,000 Ishikawajima-Harima Heavy Industries Co., Ltd.(a) 17,888 26,000 Kawasaki Heavy Industries Ltd. 42,627 39,000 Komatsu Ltd. 272,890 8,000 Koyo Seiko Co., Ltd. 112,579 47,000 Kubota Corp. 233,005 3,000 Kurita Water Industries Ltd. 43,154 25,000 Minebea Co., Ltd. 109,056 88,000 Mitsubishi Heavy Industries Ltd. 249,907 50,000 Mitsui Engineering & Shipbuilding Co., Ltd. 85,391 3,000 NGK Insulators Ltd. 28,691 14,000 NSK Ltd. 70,362 15,000 NTN Corp. 86,074 1,400 SMC Corp. 160,262 32,000 Sumitomo Heavy Industries Ltd.(a) 118,981 3,700 THK Co., Ltd. 73,300 9,000 Takuma Co., Ltd. 70,879 ------------ 2,292,280 ----------------------------------------------------------------------------------------------------------------- Marine - 0.1% 11,000 Kawasaki Kisen Kaisha Ltd. 70,743 25,000 Mitsui OSK Lines Ltd. 150,044 37,000 Nippon Yusen Kabushiki Kaisha 199,317 ------------ 420,104 ----------------------------------------------------------------------------------------------------------------- Media - 0.1% 600 Asatsu-DK Inc. 16,893 33 Dentsu Inc. 88,885 26 Fuji Television Network Inc. 56,329 5,000 Toho Co., Ltd. 78,999 4,000 Tokyo Broadcasting System Inc. 65,229 ------------ 306,335 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.5% 7,000 Dowa Mining Co., Ltd. 45,565 17,900 JFE Holdings Inc. 510,954 54,000 Kobe Steel Ltd. 82,736 10,000 Mitsubishi Materials Corp. 20,982 22,000 Mitsui Mining & Smelting Co., Ltd. 97,043 202,000 Nippon Steel Corp. 494,798 40,000 Nisshin Steel Co., Ltd. 92,125 99,000 Sumitomo Metal Industries Ltd. 134,293 13,000 Sumitomo Metal Mining Co., Ltd. 92,866 ------------ 1,571,362 ----------------------------------------------------------------------------------------------------------------- Multiline Retail - 0.1% 9,000 Daimaru Inc. 73,690 6,000 Hankyu Department Stores 43,505 1,000 Isetan Co., Ltd. 11,662 7,000 Marui Co., Ltd. 93,725 16,000 Mitsukoshi Ltd. 77,759 1,800 Ryohin Keikaku Co., Ltd. 90,466 4,000 Takashimaya Co., Ltd. 38,489 ------------ 429,296 ----------------------------------------------------------------------------------------------------------------- Office Electronics - 0.7% 30,000 Canon Inc. 1,619,010 12,000 Konica Minolta Holdings Inc. 159,266 26,000 Ricoh Co., Ltd. 501,630 ------------ 2,279,906 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.2% 21,000 Nippon Mining Holdings Inc. 98,780 39,000 Nippon Oil Corp. 250,054 6,000 Showa Shell Sekiyu KK 54,631 17,000 Teikoku Oil Co., Ltd. 94,564 10,000 TonenGeneral Sekiyu KK 91,051 ------------ 589,080 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Japan Paper & Forest Products - 0.1% 39 Nippon Paper Group Inc. $ 175,076 (concluded) 20,000 OJI Paper Co., Ltd. 114,765 ------------ 289,841 ----------------------------------------------------------------------------------------------------------------- Personal Products - 0.1% 1,700 Aderans Co., Ltd. 39,319 10,000 Shiseido Co., Ltd. 144,823 ------------ 184,142 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 1.2% 13,000 Chugai Pharmaceutical Co., Ltd. 214,912 11,100 Daiichi Pharmaceutical Co., Ltd. 239,939 10,000 Eisai Co., Ltd. 328,877 8,000 Fujisawa Pharmaceutical Co., Ltd. 218,991 11,000 Kaken Pharmaceutical Co., Ltd. 72,460 11,000 Kyowa Hakko Kogyo Co., Ltd. 82,658 11,300 Sankyo Co., Ltd. 255,289 14,000 Shionogi & Co., Ltd. 193,598 7,000 Taisho Pharmaceutical Co., Ltd. 152,337 31,000 Takeda Pharmaceutical Co., Ltd. 1,561,042 10,000 Yamanouchi Pharmaceutical Co., Ltd. 389,382 ------------ 3,709,485 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.4% 14 Japan Real Estate Investment Corp. 118,044 13 Japan Retail Fund Investment Corp. 109,739 2,300 Leopalace21 Corp. 40,492 30,000 Mitsubishi Estate Co., Ltd. 351,322 21,000 Mitsui Fudosan Co., Ltd. 255,148 16 Nippon Building Fund Inc. 136,469 10,000 Sumitomo Realty & Development Co., Ltd. 130,380 26,000 Tokyu Land Corp. 108,598 ------------ 1,250,192 ----------------------------------------------------------------------------------------------------------------- Road & Rail - 0.7% 41 Central Japan Railway Co. 334,898 114 East Japan Railway Co. 634,137 15,000 Keihin Electric Express Railway Co., Ltd. 92,369 19,000 Keio Electric Railway Co., Ltd. 111,437 72,000 Kintetsu Corp. 248,736 37,000 Nippon Express Co., Ltd. 182,346 25,000 Odakyu Electric Railway Co., Ltd. 144,920 42,000 Tobu Railway Co., Ltd. 159,852 41,000 Tokyu Corp. 221,665 49 West Japan Railway Co. 197,970 ------------ 2,328,330 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 1,800 Advantest Corp. 154,406 Equipment - 0.3% 1,200 NEC Electronics Corp. 58,554 6,000 Nikon Corp. 74,129 3,400 Rohm Co., Ltd. 351,713 8,000 Sanken Electric Co., Ltd. 104,694 5,600 Tokyo Electron Ltd. 344,842 ------------ 1,088,338 ----------------------------------------------------------------------------------------------------------------- Software - 0.3% 5,700 Capcom Co., Ltd. 54,180 3,600 Konami Corp. 83,439 9,000 Namco Ltd. 118,132 3,100 Nintendo Co., Ltd. 389,353 900 Oracle Corp. Japan 46,638 4,000 Trend Micro Inc. 215,868 ------------ 907,610 ----------------------------------------------------------------------------------------------------------------- Specialty Retail - 0.2% 2,800 Aoyama Trading Co., Ltd. 76,237 1,300 Autobacs Seven Co., Ltd. 37,996 2,400 Fast Retailing Co., Ltd. 182,688 600 Shimachu Co., Ltd. 14,843 600 Shimamura Co., Ltd. 43,798 700 USS Co., Ltd. 58,749 4,200 Yamada Denki Co., Ltd. 179,936 ------------ 594,247 ----------------------------------------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods - 0.1% 1,000 Nisshinbo Industries Inc. 7,485 8,000 Onward Kashiyama Co., Ltd. 116,405 2,000 Toyobo Co., Ltd. 4,821 5,000 Wacoal Corp. 59,969 1,600 World Co., Ltd. 56,212 ------------ 244,892 ----------------------------------------------------------------------------------------------------------------- Tobacco - 0.1% 27 Japan Tobacco Inc. 308,285 ----------------------------------------------------------------------------------------------------------------- Trading Companies & Distributors - 0.5% 53,000 Itochu Corp. 245,164 31,000 Marubeni Corp. 85,918 38,000 Mitsubishi Corp. 490,992 39,000 Mitsui & Co., Ltd. 349,771 100 Sojitz Holdings Corp.(a) 433 38,000 Sumitomo Corp. 327,823 ------------ 1,500,101 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.0% 2,000 Kamigumi Co., Ltd. 15,966 8,000 Mitsubishi Logistics Corp. 78,852 ------------ 94,818 ----------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 683 NTT DoCoMo Inc. 1,259,754 Services - 0.4% ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Japan 67,911,021 - ----------------------------------------------------------------------------------------------------------------------------------- Netherlands - Air Freight & Logistics - 0.1% 14,776 TPG NV 401,284 4.8% ----------------------------------------------------------------------------------------------------------------- Beverages - 0.1% 10,499 Heineken NV 350,062 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.2% 11,211 Akzo Nobel NV 478,186 1,968 DSM NV 127,384 ------------ 605,570 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.4% 52,985 ABN AMRO Holding NV 1,403,667 ----------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.1% 1,086 Randstad Holdings NV 42,734 7,896 Vedior NV 128,684 ------------ 171,418 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Netherlands Diversified Financial Services - 0.6% 3,935 Euronext NV $ 120,184 (concluded) 63,707 ING Groep NV CVA 1,927,576 ------------ 2,047,760 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 76,315 Royal KPN NV 725,081 Services - 0.2% ----------------------------------------------------------------------------------------------------------------- Energy Equipment & Services - 0.0% 228 IHC Caland NV 14,485 ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.1% 48,361 Koninklijke Ahold NV 374,688 ----------------------------------------------------------------------------------------------------------------- Food Products - 0.5% 6,433 Royal Numico NV 231,980 19,510 Unilever NV 1,308,180 ------------ 1,540,160 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.4% 47,294 Koninklijke Philips Electronics NV(a) 1,254,188 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.0% 14,185 Getronics NV(a) 32,392 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.2% 48,831 Aegon NV 665,726 ----------------------------------------------------------------------------------------------------------------- Media - 0.3% 27,301 Reed Elsevier NV 372,202 10,501 VNU NV 310,163 8,647 Wolters Kluwer NV 173,598 ------------ 855,963 ----------------------------------------------------------------------------------------------------------------- Office Electronics - 0.0% 194 OCE NV 2,969 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 1.4% 75,688 Royal Dutch Petroleum Co. 4,356,921 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.1% 1,655 Corio NV 96,956 1,648 Rodamco Europe NV 130,819 332 Wereldhave NV 36,102 ------------ 263,877 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 16,636 ASML Holding NV(a) 267,053 Equipment - 0.1% ----------------------------------------------------------------------------------------------------------------- Trading Companies & Distributors - 0.0% 30,280 Hagemeyer NV(a) 69,969 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in the Netherlands 15,403,233 - ----------------------------------------------------------------------------------------------------------------------------------- New Zealand - Construction Materials - 0.0% 20,926 Fletcher Building Ltd. 100,060 0.2% ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 54,856 Telecom Corp. of New Zealand Ltd. 243,678 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.0% 22,289 Contact Energy Ltd. 103,036 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.1% 45,575 Fisher & Paykel Healthcare Corp. 106,657 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.0% 30,232 Fisher & Paykel Appliances Holdings Ltd. 93,897 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.0% 11,556 Tower Ltd.(a) 17,862 ----------------------------------------------------------------------------------------------------------------- Multiline Retail - 0.0% 16,257 Warehouse Group Ltd. 42,625 ----------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 0.0% 5,644 Carter Holt Harvey Ltd. 8,439 253 Tenon Ltd. 402 ------------ 8,841 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.0% 16,200 Auckland International Airport Ltd. 93,376 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in New Zealand 810,032 - ----------------------------------------------------------------------------------------------------------------------------------- Norway - 0.5% Airlines - 0.0% 2,392 SAS AB(a) 22,413 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.0% 8,336 Yara International ASA(a) 109,763 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.1% 19,915 DNB NOR ASA 196,465 ----------------------------------------------------------------------------------------------------------------- Communications Equipment - 0.0% 9,463 Tandberg ASA 117,572 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 913 Telenor ASA 8,291 Services - 0.1% 8,900 Telenor ASA(b) 245,551 ------------ 253,842 ----------------------------------------------------------------------------------------------------------------- Energy Equipment & Services - 0.0% 3,691 Smedvig ASA Class A 62,008 ----------------------------------------------------------------------------------------------------------------- Food Products - 0.1% 8,570 Orkla ASA 281,580 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.0% 8,611 Storebrand ASA 83,172 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.0% 2,598 Tomra Systems ASA 14,284 ----------------------------------------------------------------------------------------------------------------- Media - 0.0% 3,568 Schibsted ASA 101,326 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.2% 791 Frontline Ltd. 35,197 5,039 Norsk Hydro ASA 396,854 23,291 Statoil ASA 365,325 ------------ 797,376 ----------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 0.0% 3,089 Norske Skogindustrier ASA 66,812 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Norway 2,106,613 - ----------------------------------------------------------------------------------------------------------------------------------- Portugal - 0.4% Commercial Banks - 0.2% 25,668 Banco BPI SA 103,970 76,415 Banco Comercial Portugues SA Registered Shares 196,309 6,793 Banco Espirito Santo SA Registered Shares 122,804 ------------ 423,083 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.0% 15,305 Cimpor Cimentos de Portugal SA 86,334 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 24,684 Portugal Telecom SGPS SA Registered Shares 305,321 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.1% 57,220 Energias de Portugal SA 173,441 ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.0% 4,098 Jeronimo Martins(a) 54,031 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.0% 38,364 Sonae SGPS SA 55,796 ----------------------------------------------------------------------------------------------------------------- Media - 0.0% 2,349 PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA 59,036 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.0% 7,477 Brisa-Auto Estradas de Portugal SA Private Shares 68,601 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Portugal 1,225,643 - ----------------------------------------------------------------------------------------------------------------------------------- Singapore - 0.9% Aerospace & Defense - 0.0% 56,213 Singapore Technologies Engineering Ltd. 80,235 ----------------------------------------------------------------------------------------------------------------- Air Freight & Logistics - 0.0% 138,954 Singapore Post Ltd. 75,759 ----------------------------------------------------------------------------------------------------------------- Airlines - 0.1% 17,582 Singapore Airlines Ltd. 122,785 ----------------------------------------------------------------------------------------------------------------- Beverages - 0.0% 3,836 Fraser and Neave Ltd. 38,304 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.3% 34,751 DBS Group Holdings Ltd. 342,741 36,598 Oversea-Chinese Banking Corp. 302,667 40,572 United Overseas Bank Ltd. 342,988 ------------ 988,396 ----------------------------------------------------------------------------------------------------------------- Computers & Peripherals - 0.0% 5,907 Creative Technology Ltd. 88,294 ----------------------------------------------------------------------------------------------------------------- Distributors - 0.0% 3,331 Jardine Cycle & Carriage Ltd. 21,630 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.0% 82,000 Singapore Exchange Ltd. 89,917 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 266,803 Singapore Telecommunications Ltd. 387,358 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Electronic Equipment & 5,000 Venture Corp. Ltd. 48,701 Instruments - 0.0% ----------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.0% 83,000 Parkway Holdings Ltd. 76,268 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.0% 2,631 Overseas Union Enterprise Ltd. 12,572 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.1% 1,766 Haw Par Corp. Ltd. 5,571 25,914 Keppel Corp. Ltd. 136,523 24,154 SembCorp Industries Ltd. 23,971 ------------ 166,065 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.0% 107,427 SembCorp Marine Ltd. 89,501 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Singapore Media - 0.1% 36,116 Singapore Press Holdings Ltd. $ 101,773 (concluded) ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.1% 33,833 CapitaLand Ltd. 44,146 29,535 City Developments Ltd. 128,460 ------------ 172,606 ----------------------------------------------------------------------------------------------------------------- Road & Rail - 0.1% 104,816 ComfortDelgro Corp. Ltd. 99,525 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 89,002 Chartered Semiconductor Manufacturing Ltd.(a) 53,432 Equipment - 0.0% 1,120 Chartered Semiconductor Manufacturing Ltd.(a)(b) 6,765 ------------ 60,197 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.0% 43,000 SembCorp Logistics Ltd. 45,571 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Singapore 2,765,457 - ----------------------------------------------------------------------------------------------------------------------------------- South Africa - Beverages - 0.1% 28,939 SABMiller Plc 480,039 0.5% ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.4% 50,000 Anglo American Plc 1,182,659 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in South Africa 1,662,698 - ----------------------------------------------------------------------------------------------------------------------------------- Spain - 3.6% Airlines - 0.0% 31,929 Iberia Lineas Aereas de Espana 110,669 ----------------------------------------------------------------------------------------------------------------- Biotechnology - 0.0% 6,228 Zeltia SA 43,597 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 1.4% 97,327 Banco Bilbao Vizcaya Argentaria SA 1,726,407 4,521 Banco Popular Espanol SA 298,041 186,457 Banco Santander Central Hispano SA 2,313,922 ------------ 4,338,370 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.2% 6,197 ACS Actividades de Construccion y Servicios, SA 141,511 446 Acciona SA 39,465 2,428 Fomento de Construcciones y Contratas SA 116,928 3,360 Grupo Ferrovial SA 179,578 5,086 Sacyr Vallehermoso SA 83,995 ------------ 561,477 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 138,369 Telefonica SA 2,606,761 Services - 0.8% 1,081 Telefonica SA(b) 61,076 ------------ 2,667,837 ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.4% 27,059 Endesa SA 635,925 21,139 Iberdrola SA 537,310 8,894 Union Fenosa SA 233,925 ------------ 1,407,160 ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.0% 738 Gamesa Corp. Tecnologica SA 10,332 ----------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.1% 7,543 Gas Natural SDG SA 233,354 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.0% 7,812 NH Hoteles SA 103,636 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.1% 6,012 Amadeus Global Travel Distribution SA Class A 61,861 8,650 Indra Sistemas SA 147,792 ------------ 209,653 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.0% 8,309 Corp Mapfre SA 122,427 ----------------------------------------------------------------------------------------------------------------- Media - 0.0% 1,688 Antena 3 de Television SA(a) 121,948 628 Sogecable SA(a) 27,879 ------------ 149,827 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.1% 10,980 Acerinox SA 176,259 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.2% 25,356 Repsol YPF SA 660,352 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.0% 1,764 Metrovacesa SA 82,002 ----------------------------------------------------------------------------------------------------------------- Specialty Retail - 0.1% 7,341 Inditex SA 216,528 ----------------------------------------------------------------------------------------------------------------- Tobacco - 0.1% 8,337 Altadis SA 381,891 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.1% 5,353 Abertis Infraestructuras SA 117,872 6,800 Cintra Concesiones de Infraestructuras de Transporte SA(a) 74,683 ------------ 192,555 ----------------------------------------------------------------------------------------------------------------- Water Utilities - 0.0% 3,530 Sociedad General de Aguas de Barcelona SA Class A 73,796 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Spain 11,741,722 - ----------------------------------------------------------------------------------------------------------------------------------- Sweden - 2.4% Airlines - 0.0% 1,680 SAS AB(a) 15,503 ----------------------------------------------------------------------------------------------------------------- Auto Components - 0.0% 6,944 Trelleborg AB Class B 118,077 ----------------------------------------------------------------------------------------------------------------- Building Products - 0.1% 12,596 Assa Abloy AB Class B 215,133 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 0.5% 69,576 Nordea Bank AB 701,477 20,039 Skandinaviska Enskilda Banken AB Class A 387,488 16,874 Svenska Handelsbanken Class A 439,282 ------------ 1,528,247 ----------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.1% 14,465 Securitas AB 248,143 ----------------------------------------------------------------------------------------------------------------- Communications Equipment - 0.5% 527,005 Telefonaktiebolaget LM Ericsson(a) 1,681,239 1,407 Telefonaktiebolaget LM Ericsson(a)(b) 44,306 ------------ 1,725,545 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.1% 17,922 Skanska AB Class B 215,078 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.0% 1 Ainax AB 40 1,010 OMX AB(a) 12,919 ------------ 12,959 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 2,337 Tele2 AB Class B 91,786 Services - 0.1% 30,146 TeliaSonera AB 180,548 ------------ 272,334 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.0% 2,151 Getinge AB Class B 26,785 ----------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.0% 4,167 Gambro AB Class A 59,413 3,981 Gambro AB Class B 55,862 ------------ 115,275 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.1% 11,716 Electrolux AB Class B 267,980 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.0% 4,275 WM-data AB Class B 9,264 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.0% 26,296 Skandia Forsakrings AB 130,977 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.4% 5,967 Alfa Laval AB 96,526 4,654 Atlas Copco AB Class A 210,100 2,672 Atlas Copco AB Class B 111,578 1,881 SKF AB Class B 83,784 6,203 Sandvik AB 250,159 3,295 Scania AB Class B 130,404 3,880 Volvo AB Class A 148,009 9,547 Volvo AB Class B 378,553 ------------ 1,409,113 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Sweden Media - 0.1% 5,496 Eniro AB $ 56,239 (concluded) 2,810 Modern Times Group AB Class B(a) 76,536 ------------ 132,775 ----------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 0.1% 277 Billerud AB 4,939 945 Holmen AB Class B 32,707 8,530 Svenska Cellulosa AB Class B 363,899 ------------ 401,545 ----------------------------------------------------------------------------------------------------------------- Specialty Retail - 0.2% 18,171 Hennes & Mauritz AB Class B 633,007 ----------------------------------------------------------------------------------------------------------------- Tobacco - 0.1% 17,627 Swedish Match AB 204,243 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Sweden 7,681,983 - ----------------------------------------------------------------------------------------------------------------------------------- Switzerland - Biotechnology - 0.1% 294 Serono SA 193,656 6.9% ----------------------------------------------------------------------------------------------------------------- Building Products - 0.0% 90 Geberit AG Registered Shares 65,852 ----------------------------------------------------------------------------------------------------------------- Capital Markets - 1.5% 41,795 Credit Suisse Group(a) 1,756,926 37,744 UBS AG Registered Shares 3,164,973 ------------ 4,921,899 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.3% 3,446 Ciba Specialty Chemicals AG Registered Shares 262,140 10,389 Clariant AG 167,653 198 Givaudan 130,421 2,482 Lonza Group AG Registered Shares 139,696 3,542 Syngenta AG 376,285 ------------ 1,076,195 ----------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.1% 3,995 Adecco SA Registered Shares 201,138 218 SGS SA 152,702 ------------ 353,840 ----------------------------------------------------------------------------------------------------------------- Computers & Peripherals - 0.1% 2,235 Logitech International SA Registered Shares(a) 136,604 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.1% 6,780 Holcim Ltd. 408,434 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 1,047 Swisscom AG 412,502 Services - 0.1% ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.1% 63,423 ABB Ltd.(a) 354,178 ----------------------------------------------------------------------------------------------------------------- Electronic Equipment & 2,650 Kudelski SA(a) 97,414 Instruments - 0.0% ----------------------------------------------------------------------------------------------------------------- Food Products - 1.2% 14,464 Nestle SA Registered Shares 3,784,223 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.2% 850 Nobel Biocare Holding AG 153,988 2,889 Phonak Holding AG Registered Shares 95,275 207 Straumann Holding AG Registered Shares 42,962 2,128 Synthes Inc.(a) 238,607 ------------ 530,832 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.0% 35 Kuoni Reisen Holding AG Registered Shares 15,390 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.5% 10,717 Swiss Reinsurance Registered Shares 764,356 4,837 Zurich Financial Services AG 806,521 ------------ 1,570,877 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.1% 40 Schindler Holding AG Participation Certificates 15,865 282 Sulzer AG 112,158 128,023 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 2.2% 84,608 Novartis AG Registered Shares 4,263,511 24,793 Roche Holding AG 2,854,106 ------------ 7,117,617 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 1,719 Micronas Semiconductor Holding AG Registered Equipment - 0.0% Shares(a) 84,280 10 Unaxis Holding AG 994 ------------ 85,274 ----------------------------------------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods - 0.3% 18,752 Compagnie Financiere Richemont AG 624,187 1,575 Swatch Group AG Class B 231,174 2,276 Swatch Group AG Registered Shares 67,654 ------------ 923,015 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in Switzerland 22,175,825 - ----------------------------------------------------------------------------------------------------------------------------------- United Kingdom - Aerospace & Defense - 0.3% 109,911 BAE Systems Plc 486,397 24.7% 3,528 Cobham Plc 83,787 5,374 Meggitt Plc 27,006 55,241 Rolls-Royce Group Plc 261,962 1,756,664 Rolls-Royce Group Plc Class B 3,440 ------------ 862,592 ----------------------------------------------------------------------------------------------------------------- Air Freight & Logistics - 0.1% 11,029 Exel Plc 153,092 ----------------------------------------------------------------------------------------------------------------- Airlines - 0.0% 18,233 British Airways Plc(a) 82,263 ----------------------------------------------------------------------------------------------------------------- Auto Components - 0.0% 26,018 GKN Plc 118,136 ----------------------------------------------------------------------------------------------------------------- Automobiles - 0.0% 1,025 TI Automotive Ltd. A(a) - ----------------------------------------------------------------------------------------------------------------- Beverages - 0.6% 109,812 Diageo Plc 1,566,454 29,507 Scottish & Newcastle Plc 246,855 ------------ 1,813,309 ----------------------------------------------------------------------------------------------------------------- Building Products - 0.1% 19,884 BPB Plc 180,665 53,235 Pilkington Plc 112,426 293,091 ----------------------------------------------------------------------------------------------------------------- Capital Markets - 0.3% 27,983 3i Group Plc 357,806 26,671 Amvescap Plc 164,242 2,797 Close Brothers Group Plc 39,442 12,596 ICAP Plc 65,718 10,234 Man Group Plc 289,223 4,105 Schroders Plc 59,188 ------------ 975,619 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.2% 18,411 BOC Group Plc 351,175 44,050 Imperial Chemical Industries Plc 203,818 8,117 Johnson Matthey Plc 153,968 ------------ 708,961 ----------------------------------------------------------------------------------------------------------------- Commercial Banks - 5.3% 231,125 Barclays Plc 2,600,300 139,659 HBOS Plc 2,273,756 395,750 HSBC Holdings Plc 6,678,652 190,856 Lloyds TSB Group Plc 1,733,189 2,530 Lloyds TSB Group Plc(b) 93,079 112,438 Royal Bank of Scotland Group Plc 3,782,041 ------------ 17,161,017 -----------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- United Kingdom Commercial Services & Supplies - 0.3% 29,155 Brambles Industries Plc $ 145,674 (continued) 16,587 Bunzl Plc 138,368 24,611 Capita Group Plc 172,819 3,209 DX Services Plc(a) 22,549 26,991 Group 4 Securicor Plc(a) 72,548 64,193 Hays Plc 153,131 1,493 Intertek Group Plc 20,208 67,222 Rentokil Initial Plc 190,686 2,405 Serco Group Plc 11,082 ------------ 927,065 ----------------------------------------------------------------------------------------------------------------- Communications Equipment - 0.0% 5,298 Marconi Corp. Plc(a) 57,215 ----------------------------------------------------------------------------------------------------------------- Construction & Engineering - 0.1% 12,050 Amec Plc 68,884 24,840 Balfour Beatty Plc 150,344 ------------ 219,228 ----------------------------------------------------------------------------------------------------------------- Construction Materials - 0.1% 27,258 Hanson Plc 234,058 9,436 RMC Group Plc 153,806 ------------ 387,864 ----------------------------------------------------------------------------------------------------------------- Consumer Finance - 0.1% 7,713 Cattles Plc 54,346 14,009 Provident Financial Plc 180,740 ------------ 235,086 ----------------------------------------------------------------------------------------------------------------- Containers & Packaging - 0.1% 20,343 Rexam Plc 179,465 ----------------------------------------------------------------------------------------------------------------- Distributors - 0.0% 1,845 Inchcape Plc 69,250 ----------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 0.0% 5,899 London Stock Exchange Plc 65,914 ----------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 299,121 BT Group Plc 1,165,794 Services - 0.5% 900 BT Group Plc (b) 35,577 88,222 Cable & Wireless Plc 201,983 ------------ 1,403,354 ----------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.3% 30,800 Scottish & Southern Energy Plc 515,935 62,819 Scottish Power Plc 486,345 993 Scottish Power Plc(b) 30,942 ------------ 1,033,222 ----------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.0% 21,146 Kidde Plc 67,596 ----------------------------------------------------------------------------------------------------------------- Electronic Equipment & 18,858 Electrocomponents Plc 103,095 Instruments - 0.0% 4,902 Premier Farnell Plc 16,093 ------------ 119,188 ----------------------------------------------------------------------------------------------------------------- Food & Staples Retailing - 0.7% 28,340 Boots Group Plc 356,658 37,427 J Sainsbury Plc 194,371 277,338 Tesco Plc 1,713,196 ------------ 2,264,225 ----------------------------------------------------------------------------------------------------------------- Food Products - 0.6% 76,752 Cadbury Schweppes Plc 714,678 16,627 Tate & Lyle Plc 150,912 101,803 Unilever Plc 999,736 ------------ 1,865,326 ----------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.2% 138,266 Centrica Plc 627,142 ----------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.1% 3,902 SSL International Plc 23,598 34,543 Smith & Nephew Plc 353,481 ------------ 377,079 ----------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.0% 6,950 Alliance Unichem Plc 100,675 ----------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 0.7% 6,155 Carnival Plc 375,544 79,660 Compass Group Plc 376,613 13,810 Enterprise Inns Plc 210,785 58,530 Hilton Group Plc 319,698 23,682 Intercontinental Hotels Group Plc 294,401 30,006 Mitchells & Butlers Plc 195,869 6,594 Punch Taverns Plc 87,416 21,215 Rank Group Plc 107,529 11,009 Whitbread Plc 178,918 15,467 William Hill Plc 167,480 ------------ 2,314,253 ----------------------------------------------------------------------------------------------------------------- Household Durables - 0.2% 9,646 Barratt Developments Plc 110,098 788 Bellway Plc 12,330 2,907 Berkeley Group Holdings Plc 45,151 10,998 Persimmon Plc 145,905 23,279 Taylor Woodrow Plc 121,566 20,870 Wimpey George Plc 162,076 ------------ 597,126 ----------------------------------------------------------------------------------------------------------------- Household Products - 0.2% 21,643 Reckitt Benckiser Plc 654,035 ----------------------------------------------------------------------------------------------------------------- IT Services - 0.0% 30,199 LogicaCMG Plc 111,755 ----------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 0.2% 20,750 Smiths Group Plc 327,468 34,739 Tomkins Plc 169,573 ------------ 497,041 ----------------------------------------------------------------------------------------------------------------- Insurance - 0.8% 83,550 Aviva Plc 1,007,361 70,102 Friends Provident Plc 207,267 233,606 Legal & General Group Plc 493,351 84,770 Prudential Plc 737,258 106,903 Royal & Sun Alliance Insurance Group 159,063 ------------ 2,604,300 ----------------------------------------------------------------------------------------------------------------- Internet & Catalog Retail - 0.2% 36,424 GUS Plc 656,298 ----------------------------------------------------------------------------------------------------------------- Machinery - 0.1% 9,108 FKI Plc 20,372 11,268 IMI Plc 85,182 206,804 Invensys Plc(a) 61,542 ------------ 167,096 ----------------------------------------------------------------------------------------------------------------- Media - 1.1% 57,937 Aegis Group Plc 120,132 44,353 British Sky Broadcasting Plc 478,562 11,034 Daily Mail & General Trust 157,187 27,950 EMI Group Plc 142,202
Master International Index Series Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
- ----------------------------------------------------------------------------------------------------------------------------------- Country Industry* Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- United Kingdom Media (concluded) 9,612 Emap Plc $ 150,493 (concluded) 154,067 ITV Plc 311,323 29,694 Pearson Plc 358,305 45,682 Reed Elsevier Plc 421,422 53,018 Reuters Group Plc 384,255 11,407 Trinity Mirror Plc 139,286 11,903 United Business Media Plc 109,692 41,546 WPP Group Plc 457,049 25,811 Yell Group Plc 218,040 ------------ 3,447,948 ----------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.8% 91,274 BHP Billiton Plc 1,069,822 194,761 Corus Group Plc(a) 188,831 38,605 Rio Tinto Plc Registered Shares 1,136,226 ------------ 2,394,879 ----------------------------------------------------------------------------------------------------------------- Multi-Utilities & Unregulated 52,187 International Power Plc(a) 154,800 Power - 0.5% 110,593 National Grid Transco Plc 1,053,145 20,598 United Utilities Plc 249,141 8,249 United Utilities Plc Class A 70,872 ------------ 1,527,958 ----------------------------------------------------------------------------------------------------------------- Multiline Retail - 0.2% 58,300 Marks & Spencer Group Plc 383,921 9,680 Next Plc 306,647 ------------ 690,568 ----------------------------------------------------------------------------------------------------------------- Oil & Gas - 3.6% 130,742 BG Group Plc 888,582 762,276 BP Plc 7,434,554 3,849 BP Plc(b) 224,782 354,749 Shell Transport & Trading Co. Plc 3,024,009 ------------ 11,571,927 ----------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 2.2% 60,203 AstraZeneca Plc 2,183,379 210,736 GlaxoSmithKline Plc 4,944,119 800 GlaxoSmithKline Plc(b) 37,912 ------------ 7,165,410 ----------------------------------------------------------------------------------------------------------------- Real Estate - 0.4% 18,022 British Land Co. Plc 310,020 11,899 Hammerson Plc 198,408 17,232 Land Securities Group Plc 463,172 9,912 Liberty International Plc 184,687 18,432 Slough Estates Plc 194,632 ------------ 1,350,919 ----------------------------------------------------------------------------------------------------------------- Road & Rail - 0.1% 16,203 Firstgroup Plc 108,490 2,119 National Express Group Plc 33,584 33,050 Stagecoach Group Plc 72,177 ------------ 214,251 ----------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 41,211 ARM Holdings Plc 87,429 Equipment - 0.0% ----------------------------------------------------------------------------------------------------------------- Software - 0.1% 21,437 Misys Plc 86,121 66,142 Sage Group Plc 256,829 ------------ 342,950 ----------------------------------------------------------------------------------------------------------------- Specialty Retail - 0.3% 72,099 Dixons Group Plc 210,403 3,700 HMV Group Plc 18,469 24,040 Kesa Electricals Plc 130,386 83,788 Kingfisher Plc 498,278 24,999 MFI Furniture Plc 59,515 79,661 Signet Group Plc 168,235 ------------ 1,085,286 ----------------------------------------------------------------------------------------------------------------- Tobacco - 0.5% 57,613 British American Tobacco Plc 992,736 26,193 Imperial Tobacco Group Plc 717,610 ------------ 1,710,346 ----------------------------------------------------------------------------------------------------------------- Trading Companies & Distributors - 0.1% 21,556 Wolseley Plc 402,887 ----------------------------------------------------------------------------------------------------------------- Transportation Infrastructure - 0.3% 11,911 Associated British Ports Holdings Plc 108,623 39,638 BAA Plc 444,430 12,221 BBA Group Plc 67,046 29,716 The Peninsular and Oriental Steam Navigation Co. 169,729 ------------ 789,828 ----------------------------------------------------------------------------------------------------------------- Water Utilities - 0.1% 15,133 Kelda Group Plc 183,766 12,768 Severn Trent Plc 237,044 ------------ 420,810 ----------------------------------------------------------------------------------------------------------------- Wireless Telecommunication 2,286,456 Vodafone Group Plc 6,200,551 Services - 2.0% 12,490 Vodafone Group Plc(b) 341,976 ------------ 6,542,527 ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in the United Kingdom 79,514,801 - ----------------------------------------------------------------------------------------------------------------------------------- United States - Media - 0.0% 1,520 News Corp. Class A 28,363 0.0% ----------------------------------------------------------------------------------------------------------------- Total Common Stocks in the United States 28,363 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments in Common Stocks (Cost - $260,169,995) - 98.4% 316,890,728 - ----------------------------------------------------------------------------------------------------------------------------------- Mutual Funds - ----------------------------------------------------------------------------------------------------------------------------------- United States - Diversified Financial Services - 0.1% 2,000 iShares MSCI EAFE Index Fund 320,100 0.1% ----------------------------------------------------------------------------------------------------------------- Total Investments in Mutual Funds (Cost - $232,840) - 0.1% 320,100 - ----------------------------------------------------------------------------------------------------------------------------------- Preferred Stocks - ----------------------------------------------------------------------------------------------------------------------------------- Germany - 0.2% Automobiles - 0.1% 230 Porsche AG 146,779 5,476 Volkswagen AG 181,690 ------------ 328,469 ----------------------------------------------------------------------------------------------------------------- Chemicals - 0.1% 2,828 Henkel KGaA 246,013 ----------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.0% 542 Fresenius Medical Care AG 31,421 ----------------------------------------------------------------------------------------------------------------- Media - 0.0% 5,512 ProSieben SAT.1 Media AG 101,144 ----------------------------------------------------------------------------------------------------------------- Multi-Utilities & Unregulated 2,033 RWE AG 94,534 Power - 0.0% ----------------------------------------------------------------------------------------------------------------- Total Preferred Stocks in Germany 801,581 - ----------------------------------------------------------------------------------------------------------------------------------- New Zealand - Paper & Forest Products - 0.0% 2,043 Tenon Ltd. (Convertible) 3,217 0.0% ----------------------------------------------------------------------------------------------------------------- Total Preferred Stocks in New Zealand 3,217 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments in Preferred Stocks (Cost - $684,752) - 0.2% 804,798 - -----------------------------------------------------------------------------------------------------------------------------------
Master International Index Series Schedule of Investments as of December 31, 2004 (concluded) (in U.S. dollars)
Country Industry* Shares Held Warrants (c) Value - ----------------------------------------------------------------------------------------------------------------------------------- France - 0.0% Food & Staples Retailing - 0.0% 133 Casino Guichard-Perrach SA $ 20 ----------------------------------------------------------------------------------------------------------------- Total Warrants in France 20 - ----------------------------------------------------------------------------------------------------------------------------------- Singapore - 0.0% Real Estate - 0.0% 5,953 City Developments Limited 16,629 ----------------------------------------------------------------------------------------------------------------- Total Warrants in Singapore 16,629 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments in Warrants (Cost - $10,862) - 0.0% 16,649 - ----------------------------------------------------------------------------------------------------------------------------------- Rights (d) - ----------------------------------------------------------------------------------------------------------------------------------- Ireland - 0.0% Household Durables - 0.0% 61,082 Waterford Wedgewood 660 ----------------------------------------------------------------------------------------------------------------- Total Investments in Rights (Cost - $1,555) - 0.0% 660 - ----------------------------------------------------------------------------------------------------------------------------------- Beneficial Interest Short-Term Securities ----------------------------------------------------------------------------------------------------------------- $ 2,760,907 Merrill Lynch Liquidity Series, LLC Cash Sweep Series I (e) 2,760,907 ----------------------------------------------------------------------------------------------------------------- Total Investments in Short-Term Securities (Cost - $2,760,907) - 0.9% 2,760,907 ----------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $263,860,911**) - 99.6% 320,793,842 Other Assets Less Liabilities - 0.4% 1,273,022 ------------ Net Assets - 100.0% $322,066,864 ============
(a) Non-income producing security. (b) Depositary Receipts. (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 1/07/2005. (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) were as follows:
------------------------------------------------------------------------------------------------------ Affiliate Net Activity Interest Income ------------------------------------------------------------------------------------------------------ Merrill Lynch Liquidity Series, LLC Cash Sweep Series I $ (7,159,850) $125,093 ------------------------------------------------------------------------------------------------------
* For Series compliance purposes, "Industry" means any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Series' management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease. These industry classifications are unaudited. ** The cost and unrealized appreciation/depreciation of investments as of December 31, 2004, as computed for federal income tax purposes, were as follows: Aggregate cost $ 266,778,196 ============= Gross unrealized appreciation $ 61,477,825 Gross unrealized depreciation (7,462,179) ------------- Net unrealized appreciation $ 54,015,646 ============= Financial futures contracts purchased as of December 31, 2004 were as follows:
------------------------------------------------------------------------------------------------------------------------------ Expiration Unrealized Number of Contracts Issue Exchange Date Face Value Appreciation (Depreciation) ------------------------------------------------------------------------------------------------------------------------------ 1 CAC40 10 Euro Future Matif (Par) March 2005 $52,078 $ (53) 2 CAC40 10 Euro Future Matif (Par) January 2005 $103,887 (149) 4 DJ Euro Stoxx 50 Future Eurex March 2005 $159,827 456 13 Hang Seng Index Future Hong Kong January 2005 $1,188,774 555 12 IBEX 35 Plus Index Future Spanish Op January 2005 $1,454,865 20,709 15 OMX Stock Index Future Riyadh January 2005 $167,832 19 1 S&P/MIB Index Future Eurex March 2005 $210,652 (981) 2 SPI 200 Index Future Sydney March 2005 $159,401 (426) 25 TOPIX Index Future Tokyo March 2005 $2,691,129 108,471 ------------------------------------------------------------------------------------------------------------------------------ Total Unrealized Appreciation - Net $ 128,601 ===================
Forward foreign exchange contracts as of December 31, 2004 were as follows:
----------------------------------------------------------------------------------------- Foreign Settlement Unrealized Appreciation Currency Purchased Date (Depreciation) ----------------------------------------------------------------------------------------- AUD 145,000 January 2005 $ 2,711 CHF 230,000 January 2005 (686) EUR 975,000 January 2005 15,532 GBP 300,000 January 2005 (1,814) JPY 74,500,000 January 2005 7,657 SEK 550,000 January 2005 313 ----------------------------------------------------------------------------------------- Total Unrealized Appreciation on Forward Foreign Exchange Contracts - Net (US$ Commitment - $3,003,395) $ 23,713 =================
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not Applicable Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not Applicable Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable Item 11 - Controls and Procedures 11(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 11(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal half-year of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12 - Exhibits attached hereto 12(a)(1) - Code of Ethics - See Item 2 12(a)(2) - Certifications - Attached hereto 12(a)(3) - Not Applicable 12(b) - Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust By: /s/ Robert C. Doll, Jr. --------------------------------- Robert C. Doll, Jr., Chief Executive Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust Date: February 24, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. --------------------------------- Robert C. Doll, Jr., Chief Executive Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust Date: February 24, 2005 By: /s/ Donald C. Burke --------------------------------- Donald C. Burke, Chief Financial Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust Date: February 24, 2005 EX-99.CERT 2 e500384_ex99-cert.txt CERTIFICATION PURSUANT TO SECTION 302 EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Robert C. Doll, Jr., Chief Executive Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust, certify that: 1. I have reviewed this report on Form N-CSR of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust; 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 registrants as of, and for, the periods presented in this report; 4. The registrants' other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants 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 registrant, 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) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrants' 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 d) disclosed in this report any change in the registrants' internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants' internal control over financial reporting; and 5. The registrants' other certifying officer(s) and I have disclosed to the registrants' auditors and the audit committees of the registrants' boards 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 registrant'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 registrants' internal control over financial reporting. Date: March 30, 2005 /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., Chief Executive Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Donald C. Burke, Chief Financial Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust, certify that: 1. I have reviewed this report on Form N-CSR of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust; 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 registrants as of, and for, the periods presented in this report; 4. The registrants' other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants 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 registrant, 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) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrants' 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 d) disclosed in this report any change in the registrants' internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants' internal control over financial reporting; and 5. The registrants' other certifying officer(s) and I have disclosed to the registrants' auditors and the audit committees of the registrants' boards 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 registrant'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 registrants' internal control over financial reporting. Date: March 30, 2005 /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Financial Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust EX-99.1350CERT 3 e500384_ex99-1350cert.txt CERTIFICATION PURSUANT TO SECTION 906 Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Robert C. Doll, Jr., Chief Executive Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust (together, 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: February 24, 2005 /s/ Robert C. Doll, Jr. ----------------------------------- Robert C. Doll, Jr., Chief Executive Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust 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 International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust and will be retained by International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust 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 International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust (together, 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: February 24, 2005 /s/ Donald C. Burke ----------------------------------- Donald C. Burke, Chief Financial Officer of International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust 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 International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust and will be retained by International Index Fund of Merrill Lynch Index Funds, Inc. and Master International Index Series of Quantitative Master Series Trust and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----