-----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, H0Las0nA5cvF2/XLEd6WzAv62D4G6Pg/jLzpbWqXcK67Kmebh+Gfj/rwhxDMy8bk ddHrTjSjogCFrc5GMnWozQ== 0001193805-05-000317.txt : 20050228 0001193805-05-000317.hdr.sgml : 20050228 20050228144205 ACCESSION NUMBER: 0001193805-05-000317 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041231 FILED AS OF DATE: 20050228 DATE AS OF CHANGE: 20050228 EFFECTIVENESS DATE: 20050228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH BALANCE CAPITAL FUND INC CENTRAL INDEX KEY: 0000110055 IRS NUMBER: 132757134 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-02405 FILM NUMBER: 05644810 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL ROAD CITY: PLAINSBORO STATE: NJ ZIP: 08536 BUSINESS PHONE: 6092823319 MAIL ADDRESS: STREET 1: P.O. BOX 9066 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH CAPITAL FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: LIONEL D EDIE CAPITAL FUND INC DATE OF NAME CHANGE: 19760810 N-Q 1 e500136_nq-mlbalcap.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-2405 Name of Fund: Merrill Lynch Balanced Capital Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., Chief Executive Officer, Merrill Lynch Balanced Capital Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 09/30/05 Date of reporting period: 10/01/04 - 12/31/04 Item 1 - Schedule of Investments Merrill Lynch Balanced Capital Fund, Inc. Schedule of Investments as of December 31, 2004 (in U.S. dollars)
Industry++ Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Aerospace & Defense - 3.7% 1,000,000 Honeywell International, Inc. $ 35,410,000 100,000 Northrop Grumman Corp. 5,436,000 700,000 Raytheon Co. 27,181,000 450,000 United Technologies Corp. 46,507,500 -------------- 114,534,500 - ----------------------------------------------------------------------------------------------------------------------------------- Beverages - 1.1% 675,000 Anheuser-Busch Cos., Inc. 34,242,750 - ----------------------------------------------------------------------------------------------------------------------------------- Building Products - 1.2% 1,000,000 Masco Corp. 36,530,000 - ----------------------------------------------------------------------------------------------------------------------------------- Capital Markets - 2.7% 500,000 Janus Capital Group, Inc. 8,405,000 1,200,000 Mellon Financial Corp. 37,332,000 650,000 Morgan Stanley 36,088,000 -------------- 81,825,000 - ----------------------------------------------------------------------------------------------------------------------------------- Chemicals - 1.0% 600,000 EI Du Pont de Nemours & Co. 29,430,000 - ----------------------------------------------------------------------------------------------------------------------------------- Commercial Banks - 2.3% 400,000 PNC Financial Services Group, Inc. 22,976,000 750,000 Wells Fargo & Co. 46,612,500 -------------- 69,588,500 - ----------------------------------------------------------------------------------------------------------------------------------- Communications Equipment - 1.2% 1,950,000 + CommScope, Inc. 36,855,000 - ----------------------------------------------------------------------------------------------------------------------------------- Computers & Peripherals - 2.3% 1,000,000 Hewlett-Packard Co. 20,970,000 500,000 International Business Machines Corp. 49,290,000 -------------- 70,260,000 - ----------------------------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 2.3% 950,000 Citigroup, Inc. 45,771,000 600,000 JPMorgan Chase & Co. 23,406,000 -------------- 69,177,000 - ----------------------------------------------------------------------------------------------------------------------------------- Diversified Telecommunication Services - 1.2% 900,000 Verizon Communications, Inc. 36,459,000 - ----------------------------------------------------------------------------------------------------------------------------------- Electronic Equipment & Instruments - 0.3% 350,000 + Agilent Technologies, Inc. 8,435,000 - ----------------------------------------------------------------------------------------------------------------------------------- Energy Equipment & Services - 1.4% 500,000 GlobalSantaFe Corp. 16,555,000 200,000 Schlumberger Ltd. 13,390,000 300,000 + Weatherford International Ltd. 15,390,000 -------------- 45,335,000 - ----------------------------------------------------------------------------------------------------------------------------------- Food Products - 3.2% 400,000 General Mills, Inc. 19,884,000 170,000 Nestle SA Registered Shares 44,477,179 500,000 Unilever NV NY Registered Shares (a) 33,355,000 -------------- 97,716,179 - ----------------------------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 1.7% 1,000,000 Baxter International, Inc. 34,540,000 500,000 + Boston Scientific Corp. 17,775,000 -------------- 52,315,000 - ----------------------------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 1.7% 400,000 AmerisourceBergen Corp. 23,472,000 700,000 HCA, Inc. (d) 27,972,000 -------------- 51,444,000 - ----------------------------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 1.0% 1,000,000 McDonald's Corp. 32,060,000 - ----------------------------------------------------------------------------------------------------------------------------------- Household Products - 1.4% 650,000 Kimberly-Clark Corp. 42,776,500 - -----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Balanced Capital Fund, Inc. Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
Industry++ Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- IT Services - 1.1% 1,000,000 + Accenture Ltd. Class A $ 27,000,000 100,000 + Computer Sciences Corp. 5,637,000 -------------- 32,637,000 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 2.8% 1,200,000 General Electric Co. 43,800,000 1,200,000 Tyco International Ltd. 42,888,000 -------------- 86,688,000 - ----------------------------------------------------------------------------------------------------------------------------------- Insurance - 4.1% 950,000 ACE Ltd. 40,612,500 575,000 American International Group, Inc. 37,760,250 900,000 Prudential Financial, Inc. 49,464,000 -------------- 127,836,750 - ----------------------------------------------------------------------------------------------------------------------------------- Machinery - 1.4% 1,000,000 Dover Corp. 41,940,000 - ----------------------------------------------------------------------------------------------------------------------------------- Media - 3.8% 775,000 Clear Channel Communications, Inc. 25,954,750 500,000 + Comcast Corp. Special Class A 16,420,000 1,500,000 + Interpublic Group of Cos., Inc. (d) 20,100,000 1,000,000 Viacom, Inc. Class B 36,390,000 625,000 Walt Disney Co. 17,375,000 -------------- 116,239,750 - ----------------------------------------------------------------------------------------------------------------------------------- Metals & Mining - 2.0% 650,000 Alcoa, Inc. 20,423,000 800,000 United States Steel Corp. 41,000,000 -------------- 61,423,000 - ----------------------------------------------------------------------------------------------------------------------------------- Oil & Gas - 4.8% 800,000 Devon Energy Corp. 31,136,000 500,000 EnCana Corp. 28,530,000 600,000 Exxon Mobil Corp. 30,756,000 450,000 Murphy Oil Corp. 36,202,500 200,000 Total SA (a) 21,968,000 -------------- 148,592,500 - ----------------------------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 2.5% 1,000,000 International Paper Co. (d) 42,000,000 500,000 Weyerhaeuser Co. 33,610,000 -------------- 75,610,000 - ----------------------------------------------------------------------------------------------------------------------------------- Personal Products - 0.4% 350,000 Avon Products, Inc. 13,545,000 - ----------------------------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 2.8% 600,000 GlaxoSmithKline Plc (a) 28,434,000 950,000 Schering-Plough Corp. (d) 19,836,000 875,000 Wyeth 37,266,250 -------------- 85,536,250 - ----------------------------------------------------------------------------------------------------------------------------------- Road & Rail - 1.8% 400,000 Burlington Northern Santa Fe Corp. 18,924,000 900,000 CSX Corp. 36,072,000 -------------- 54,996,000 - ----------------------------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment - 1.9% 1,250,000 + Applied Materials, Inc. 21,375,000 900,000 Intel Corp. 21,051,000
Merrill Lynch Balanced Capital Fund, Inc. Schedule of Investments as of December 31, 2004 (continued) (in U.S. dollars)
Industry++ Shares Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment 750,000 Intersil Corp. Class A $ 12,555,000 (concluded) 300,000 + Micron Technology, Inc. 3,705,000 -------------- 58,686,000 - ----------------------------------------------------------------------------------------------------------------------------------- Software - 2.2% 400,000 + Citrix Systems, Inc. 9,812,000 1,192 Computer Associates International, Inc. 37,024 1,700,000 Microsoft Corp. 45,407,000 1,300,000 + Siebel Systems, Inc. 13,650,000 -------------- 68,906,024 - ----------------------------------------------------------------------------------------------------------------------------------- Specialty Retail - 1.8% 1,100,000 Limited Brands 25,322,000 1,000,000 + Office Depot, Inc. 17,360,000 500,000 TJX Cos., Inc. 12,565,000 -------------- 55,247,000 - ----------------------------------------------------------------------------------------------------------------------------------- Thrifts & Mortgage Finance - 1.2% 500,000 Fannie Mae 35,605,000 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments in Common Stocks (Cost - $1,521,971,829) - 64.3% 1,972,471,703 - ----------------------------------------------------------------------------------------------------------------------------------- Beneficial Interest Mutual Funds - ----------------------------------------------------------------------------------------------------------------------------------- $964,000,000 Master Core Bond Portfolio (b) 1,030,960,005 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments in Mutual Funds (Cost - $1,027,268,696) - 33.6% 1,030,960,005 - ----------------------------------------------------------------------------------------------------------------------------------- Face Amount Trust Preferred - ----------------------------------------------------------------------------------------------------------------------------------- Oil & Gas - 0.0% $ 1,000,050 Unocal Capital Trust, 3.125% due 9/01/2026(Convertible) 1,021,478 - ----------------------------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 0.1% 1,400,000 International Paper Capital, 2.625% due 7/20/2025 1,403,390 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments in Trust Preferred (Cost - $2,361,199) - 0.1% 2,424,868 - ----------------------------------------------------------------------------------------------------------------------------------- Beneficial Interest Short-Term Securities - ----------------------------------------------------------------------------------------------------------------------------------- $ 61,802,069 Merrill Lynch Liquidity Series, LLC Cash Sweep Series I (b) 61,802,069 57,976,900 Merrill Lynch Liquidity Series, LLC Money Market Series (b)(c) 57,976,900 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments in Short-Term Securities (Cost - $119,778,969) - 3.9% 119,778,969 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $2,671,380,693*) - 101.9% 3,125,635,545 Liabilities In Excess of Other Assets - (1.9%) (56,855,544) -------------- Net Assets - 100.0% $3,068,780,001 ==============
Merrill Lynch Balanced Capital Fund, Inc. Schedule of Investments as of December 31, 2004 (concluded) * 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 $ 2,684,262,606 =============== Gross unrealized appreciation $ 529,841,972 Gross unrealized depreciation (88,469,033) --------------- Net unrealized appreciation $ 441,372,939 =============== + Non-income producing security. ++ For Fund 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 Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. (a) Depositary Receipts. (b) Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: Interest/ Affiliate Net Activity Dividend Income -------------------------------------------------------------------------- Master Core Bond Portfolio $(50,000,000) $ 9,750,138 Merrill Lynch Liquidity Series, LLC Cash Sweep Series I $ 46,550,243 $ 235,409 Merrill Lynch Liquidity Series, LLC Money Market Series $ 37,727,700 $ 12,441 -------------------------------------------------------------------------- (c) Security was purchased with the cash proceeds from securities loans. (d) Security, or a portion of security, is on loan. Item 2 - Controls and Procedures 2(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. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter 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 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Merrill Lynch Balanced Capital Fund, Inc. By: /s/ Robert C. Doll, Jr. --------------------------- Robert C. Doll, Jr., Chief Executive Officer Merrill Lynch Balanced Capital Fund, Inc. 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 Merrill Lynch Balanced Capital Fund, Inc. Date: February 24, 2005 By: /s/ Donald C. Burke --------------------------- Donald C. Burke Chief Financial Officer Merrill Lynch Balanced Capital Fund, Inc. Date: February 24, 2005 EX-99.CERT 2 e500136_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 Merrill Lynch Balanced Capital Fund, Inc., certify that: 1. I have reviewed this report on Form N-Q of Merrill Lynch Balanced Capital Fund, Inc. (the "Fund"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the Fund as of the end of the fiscal quarter for which the report is filed; 4. The Fund's 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 Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) 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 Fund's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer(s) and I have disclosed to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal control over financial reporting. Date: February 24, 2005 /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr. Chief Executive Officer Merrill Lynch Balanced Capital Fund, Inc. EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Donald C. Burke, Chief Financial Officer of Merrill Lynch Balanced Capital Fund, Inc., certify that: 1. I have reviewed this report on Form N-Q of Merrill Lynch Balanced Capital Fund, Inc. (the "Fund"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the Fund as of the end of the fiscal quarter for which the report is filed; 4. The Fund's 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 Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) 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 Fund's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer(s) and I have disclosed to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal control over financial reporting. Date: February 24, 2005 /s/ Donald C. Burke ------------------- Donald C. Burke Chief Financial Officer Merrill Lynch Balanced Capital Fund, Inc. -----END PRIVACY-ENHANCED MESSAGE-----