-----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, Q2d3+fchkXapuQgXpvle0ne3tALrMIIEu2K5DD2tY7qCyEW/9dZiZg/bPFaDPCU4 BlD6zUtDtZTCnUMqiKFUnA== 0001193805-05-001404.txt : 20050627 0001193805-05-001404.hdr.sgml : 20050627 20050627124620 ACCESSION NUMBER: 0001193805-05-001404 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050430 FILED AS OF DATE: 20050627 DATE AS OF CHANGE: 20050627 EFFECTIVENESS DATE: 20050627 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH FOCUS VALUE FUND CENTRAL INDEX KEY: 0000701960 IRS NUMBER: 133114958 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03450 FILM NUMBER: 05916902 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL RD. CITY: PLAINOBORO STATE: NJ ZIP: 08536 BUSINESS PHONE: 6092823319 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH PHOENIX FUND INC DATE OF NAME CHANGE: 19920703 N-Q 1 e500724_nq-mlfocus.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 811-3450 Name of Fund: Merrill Lynch Focus Value 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 Focus Value 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: 07/31/05 Date of reporting period: 02/01/05 - 04/30/05 Item 1 - Schedule of Investments Merrill Lynch Focus Value Fund, Inc. Schedule of Investments as of April 30, 2005
Shares Industry* Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Above-Average Diversified Telecommunication 285,200 BellSouth Corp. $ 7,554,948 Yield - 7.6% Services - 2.1% ------------------------------------------------------------------------------------------------------------ Food Products - 1.0% 73,100 General Mills, Inc. 3,611,140 ------------------------------------------------------------------------------------------------------------ Pharmaceuticals - 1.1% 89,900 AstraZeneca Group Plc (b) 3,951,105 ------------------------------------------------------------------------------------------------------------ Trading Companies & Distributors - 2.3% 574,400 UAP Holding Corp. (c) 8,265,616 ------------------------------------------------------------------------------------------------------------ Transportation Infrastructure - 1.1% 142,900 Macquarie Infrastructure Co. Trust (c) 3,894,025 ------------------------------------------------------------------------------------------------------------ Total Above-Average Yield 27,276,834 - ----------------------------------------------------------------------------------------------------------------------------------- Discount to Communications Equipment - 0.8% 873,700 3Com Corp. (c) 2,752,155 Assets - 7.3% ------------------------------------------------------------------------------------------------------------ Energy Equipment & Services - 2.9% 309,500 GlobalSantaFe Corp. (i) 10,399,200 ------------------------------------------------------------------------------------------------------------ Media - 3.6% 44,800 Clear Channel Communications, Inc. 1,430,912 1,164,460 Liberty Media Corp. Class A (c) 11,691,178 ----------- 13,122,090 ------------------------------------------------------------------------------------------------------------ Total Discount to Assets 26,273,445 - ----------------------------------------------------------------------------------------------------------------------------------- Earnings Aerospace & Defense - 3.2% 178,600 Goodrich Corp. 7,197,580 Turnaround - 50.0% 119,800 Honeywell International, Inc. 4,284,048 ----------- 11,481,628 ------------------------------------------------------------------------------------------------------------ Beverages - 1.1% 190,700 Coca-Cola Enterprises, Inc. 3,871,210 ------------------------------------------------------------------------------------------------------------ Capital Markets - 4.2% 216,800 Mellon Financial Corp. (i) 6,003,192 175,100 Morgan Stanley 9,213,762 ----------- 15,216,954 ------------------------------------------------------------------------------------------------------------ Communications Equipment - 2.5% 711,100 Extreme Networks (c) 3,164,395 377,900 Motorola, Inc. 5,796,986 ----------- 8,961,381 ------------------------------------------------------------------------------------------------------------ Computers & Peripherals - 1.3% 261,400 Seagate Technology 4,595,412 ------------------------------------------------------------------------------------------------------------ Energy Equipment & Services - 2.5% 337,100 Rowan Cos., Inc. (i) 8,943,263 ------------------------------------------------------------------------------------------------------------ Food & Staples Retailing - 4.8% 2,008,400 The Topps Co., Inc. 17,312,428 ------------------------------------------------------------------------------------------------------------ Food Products - 1.1% 62,000 Unilever NV (b) 3,994,660 ------------------------------------------------------------------------------------------------------------ IT Services - 0.3% 47,600 Electronic Data Systems Corp. 921,060 ------------------------------------------------------------------------------------------------------------ Industrial Conglomerates - 1.9% 190,000 General Electric Co. 6,878,000 ------------------------------------------------------------------------------------------------------------ Metals & Mining - 1.0% 126,100 Alcoa, Inc. 3,659,422 ------------------------------------------------------------------------------------------------------------ Oil & Gas - 2.6% 164,100 Exxon Mobil Corp. 9,358,623 ------------------------------------------------------------------------------------------------------------ Paper & Forest Products - 2.5% 263,900 International Paper Co. 9,049,131 ------------------------------------------------------------------------------------------------------------ Pharmaceuticals - 2.4% 168,400 GlaxoSmithKline Plc (b) 8,512,620 ------------------------------------------------------------------------------------------------------------ Road & Rail - 1.4% 165,500 Norfolk Southern Corp. 5,196,700 ------------------------------------------------------------------------------------------------------------ Semiconductors & Semiconductor 7,237,100 Agere Systems, Inc. Class B (c) 8,539,778 Equipment - 6.3% 2,629,300 LSI Logic Corp. (c) 14,093,048 ----------- 22,632,826 ------------------------------------------------------------------------------------------------------------
Merrill Lynch Focus Value Fund, Inc. Schedule of Investments as of April 30, 2005
Shares Industry* Held Common Stocks Value - ----------------------------------------------------------------------------------------------------------------------------------- Software - 6.0% 1,129,500 BEA Systems, Inc. (c) $ 7,793,550 1,171,400 Borland Software Corp. (c) 6,805,834 1,343,900 Parametric Technology Corp. (c) 7,149,548 ----------- 21,748,932 ------------------------------------------------------------------------------------------------------------ Specialty Retail - 4.9% 340,700 Foot Locker, Inc. 9,083,062 408,100 The Gap, Inc. 8,712,935 ----------- 17,795,997 ------------------------------------------------------------------------------------------------------------ Total Earnings Turnaround 180,130,247 - ----------------------------------------------------------------------------------------------------------------------------------- Financial Construction & Engineering - 0.0% 3 New Millennium Homes, LLC (c)(g)(h) 750 Restructuring - 0.0% ------------------------------------------------------------------------------------------------------------ Total Financial Restructuring 750 - ----------------------------------------------------------------------------------------------------------------------------------- Operational Aerospace & Defense - 2.0% 190,600 Raytheon Co. 7,168,466 Restructuring - 24.4% ------------------------------------------------------------------------------------------------------------ Capital Markets - 3.3% 428,100 The Bank of New York Co., Inc. (i) 11,961,114 ------------------------------------------------------------------------------------------------------------ Diversified Financial Services - 3.2% 329,840 JPMorgan Chase & Co. 11,706,022 ------------------------------------------------------------------------------------------------------------ Diversified Telecommunication 213,400 Sprint Corp. (i) 4,750,284 Services - 1.3% ------------------------------------------------------------------------------------------------------------ Household Products - 1.3% 72,800 Kimberly-Clark Corp. 4,546,360 ------------------------------------------------------------------------------------------------------------ IT Services - 2.4% 1,353,000 Unisys Corp. (c) 8,780,970 ------------------------------------------------------------------------------------------------------------ Industrial Conglomerates - 3.6% 413,200 Tyco International Ltd. (i) 12,937,292 ------------------------------------------------------------------------------------------------------------ Media - 7.3% 173,800 Comcast Corp. Special Class A (c)(i) 5,514,674 694,300 Interpublic Group of Cos., Inc. (c)(i) 8,928,698 695,700 Time Warner, Inc. (c)(i) 11,694,717 ----------- 26,138,089 ------------------------------------------------------------------------------------------------------------ Total Operational Restructuring 87,988,597 - ----------------------------------------------------------------------------------------------------------------------------------- Price to Book - 9.6% Diversified Financial Services - 2.8% 215,600 Citigroup, Inc. 10,124,576 ------------------------------------------------------------------------------------------------------------ Insurance - 6.8% 245,400 American International Group, Inc. 12,478,590 338,345 The St. Paul Travelers Cos., Inc. 12,112,751 ----------- 24,591,341 ------------------------------------------------------------------------------------------------------------ Total Price to Book 34,715,917 - ----------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks 356,385,790 (Cost - $332,528,147) - 98.9% - ----------------------------------------------------------------------------------------------------------------------------------- Preferred Stocks - ----------------------------------------------------------------------------------------------------------------------------------- Financial Construction & Engineering - 0.0% 5,414 New Millennium Homes, LLC (a)(c)(g) 135,350 Restructuring - 0.0% ------------------------------------------------------------------------------------------------------------ Total Preferred Stocks 135,350 (Cost - $395) - 0.0% - -----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Focus Value Fund, Inc. Schedule of Investments as of April 30, 2005
Face Industry* Amount Corporate Bonds Value - ----------------------------------------------------------------------------------------------------------------------------------- Financial Construction & Engineering - 0.8% $ 5,021,000 New Millennium Homes, LLC, 0% due Restructuring - 0.8% 12/31/2007 (d)(f)(g) $ 3,012,600 ------------------------------------------------------------------------------------------------------------ Total Corporate Bonds 3,012,600 (Cost - $4,396,479) - 0.8% - ----------------------------------------------------------------------------------------------------------------------------------- Beneficial Interest Other Interests (e) - ----------------------------------------------------------------------------------------------------------------------------------- Financial Oil & Gas - 0.0% $ 1,981,437 WRT Energy Corp. (Litigation Trust Restructuring - 0.0% Certificates) 0 ------------------------------------------------------------------------------------------------------------ Total Investments in Other Interests (Cost - $202,416) - 0.0% 0 - ----------------------------------------------------------------------------------------------------------------------------------- Short-Term Securities - ----------------------------------------------------------------------------------------------------------------------------------- $26,851,100 Merrill Lynch Liquidity Series, LLC Money Market Series (j)(k) 26,851,100 - ----------------------------------------------------------------------------------------------------------------------------------- Total Short-Term Securities (Cost - $26,851,100) - 7.5% 26,851,100 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $363,978,537**) - 107.2% 386,384,840 Liabilities in Excess of Other Assets - (7.2%) (25,798,736) ------------ Net Assets - 100.0% $360,586,104 ============
* 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 such industry sub-classifications for reporting ease. ** The cost and unrealized appreciation (depreciation) of investments as of April 30, 2005, as computed for federal income tax purposes, were as follows: Aggregate cost $ 364,633,718 ============= Gross unrealized appreciation $ 47,959,852 Gross unrealized depreciation (26,208,730) ------------- Net unrealized appreciation $ 21,751,122 ============= (a) Convertible security. (b) Depositary Receipts. (c) Non-income producing security. (d) Non-income producing security; issuer filed for bankruptcy or is in default of interest payments. (e) Other interests represent beneficial interest in liquidation trusts and other reorganizational entities and are non-income producing. (f) Represents a zero coupon bond. Merrill Lynch Focus Value Fund, Inc. Schedule of Investments as of April 30, 2005 (g) Restricted securities as to resale, representing 0.9% of net assets, as follows:
--------------------------------------------------------------------------------------- Issue Acquisition Dates Cost Value --------------------------------------------------------------------------------------- New Millennium Homes, LLC 04/26/1996 - 08/29/1997 $ 2,891,337 $ 750 New Millennium Homes, LLC 08/29/1997 - 03/05/1999 395 135,350 (Preferred) New Millennium Homes, LLC, 08/29/1997 - 03/05/1999 4,396,479 3,012,600 0% due 12/31/2007 --------------------------------------------------------------------------------------- Total $ 7,288,211 $ 3,148,700 ===========================
(h) The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933. (i) Security, or a portion of security, is on loan. (j) 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:
---------------------------------------------------------------------------------------- Affiliate Net Activity Interest Income ---------------------------------------------------------------------------------------- Merrill Lynch Liquidity Series, LLC Cash Sweep Series I $ (9,476,694) $ 115,514 Merrill Lynch Liquidity Series, LLC Money Market Series $(39,875,450) $ 6,161 ----------------------------------------------------------------------------------------
(k) Security was purchased with the cash proceeds from securities loans. 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 Focus Value Fund, Inc. By: /s/ Robert C. Doll, Jr. ------------------------------------ Robert C. Doll, Jr. Chief Executive Officer Merrill Lynch Focus Value Fund, Inc. Date: June 20, 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 Focus Value Fund, Inc. Date: June 20, 2005 By: /s/ Donald C. Burke ------------------------------------ Donald C. Burke Chief Financial Officer Merrill Lynch Focus Value Fund, Inc. Date: June 20, 2005 EX-99.CERT 2 e500724_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 Focus Value Fund, Inc., certify that: 1. I have reviewed this report on Form N-Q of Merrill Lynch Focus Value Fund, Inc.; 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 registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant'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 registrant 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 registrant'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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant'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 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 registrant's internal control over financial reporting. Date: June 20, 2005 /s/ Robert C. Doll, Jr. ------------------------------------ Robert C. Doll, Jr. Chief Executive Officer Merrill Lynch Focus Value 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 Focus Value Fund, Inc., certify that: 1. I have reviewed this report on Form N-Q of Merrill Lynch Focus Value Fund, Inc.; 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 registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant'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 registrant 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 registrant'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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant'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 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 registrant's internal control over financial reporting. Date: June 20, 2005 /s/ Donald C. Burke ------------------------------------ Donald C. Burke Chief Financial Officer Merrill Lynch Focus Value Fund, Inc. -----END PRIVACY-ENHANCED MESSAGE-----