Merrill Lynch International Investment Funds Audited Annual Report ...

Global Capital Securities Absolute Return Fund (1) continued
Portfolio of Investments 31 December 2006
Transferable Securities Admitted to an Official Stock Exchange
Listing or Dealt in on Another Regulated Market
Holding Description Value (€) %
United States
US$1,300,000 ABN Amro North American Holding
Preferred Capital Repackage Trust I
'144A' 6.523% 8/11/2012 (Perpetual) 1,034,182 1.01
US$350,000 American Express 6.8% 1/9/2066 283,941 0.28
US$320,000 ANZ Capital Trust II '144A' 5.36%
15/12/2053 (Perpetual) 237,002 0.23
US$350,000 AT&T 6.8% 15/5/2036 283,168 0.28
€275,000 Banca Popolare di Bergamo Capital
Trust 8.364% 15/2/2011
(Perpetual) (Pref) 312,411 0.31
€500,000 BNP Paribas Capital Trust IV 6.342%
24/1/2012 (Perpetual) 540,580 0.53
€100,000 CIT Group GMTN 4.25% 22/9/2011 99,246 0.10
US$170,000 Citigroup 5.625% 27/8/2012 131,623 0.13
US$380,000 Comcast 6.5% 15/11/2035 291,274 0.29
£150,000 Commerzbank Capital Funding Trust I
5.905% 12/4/2018 (Perpetual) 218,019 0.21
US$170,000 COX Communications 5.45% 15/12/2014 125,752 0.12
US$340,000 DaimlerChrysler NA Holding 8.5%
18/1/2031 308,236 0.30
US$140,000 Deutsche Bank Financial 5.375%
2/3/2015 105,684 0.10
US$200,000 Enterprise Products Operating 8.375%
1/8/2066 164,788 0.16
US$330,000 General Electric Capital EMTN 6%
2/2/2046 249,384 0.25
US$330,000 General Electric Capital MTNA 6.75%
15/3/2032 287,990 0.28
US$550,000 Genworth Financial 6.15% 15/11/2066 417,870 0.41
US$170,000 Goldman Sachs Group 5.15% 15/1/2014 127,296 0.13
US$180,000 Goldman Sachs Group 6.345%
15/2/2034 138,842 0.14
US$100,000 ICI Wilmington 4.375% 1/12/2008 73,936 0.07
€200,000 IntesaBci Capital Trust 6.988%
12/7/2011 (Perpetual) 219,702 0.22
US$410,000 JPMorgan Chase & Co 5.125%
15/9/2014 306,626 0.30
€150,000 Lehman Brothers Holdings EMTN
FRN 4/5/2011 149,748 0.15
€225,000 MPS Capital Trust I 7.99%
7/2/2011 (Perpetual) 253,286 0.25
US$170,000 New Cingular Wireless Services
8.125% 1/5/2012 145,409 0.14
€110,000 Pemex Project Funding Master
Trust 6.625% 4/4/2010 117,307 0.12
US$1,000,000 RBS Capital Trust I 4.709%
1/7/2013 (Perpetual) (Pref) 722,688 0.71
US$390,000 RBS Capital Trust III 5.512%
30/9/2014 (Perpetual) 289,481 0.28
Transferable Securities Admitted to an Official Stock Exchange
Listing or Dealt in on Another Regulated Market
Holding Description Value (€) %
US$220,000 Sprint Capital 8.75% 15/3/2032 201,455 0.20
US$250,000 Teva Pharmaceutical Finance
6.15% 1/2/2036 185,310 0.18
US$600,000 UBS (Stamford Branch) 5.875%
15/7/2016 471,959 0.46
US$200,000 UBS Preferred Funding Trust I
8.622% 1/10/2010 (Perpetual) (Pref) 167,570 0.16
US$1,200,000 Unicredito Italiano Capital Trust II
'144A' 9.2% 5/10/2010 (Perpetual) 1,023,041 1.00
€150,000 Unicredito Italiano Capital Trust III
4.028% 27/10/2015 (Perpetual) 140,064 0.14
US$150,000 Wachovia Bank NA (Old) 5.6%
15/3/2016 115,265 0.11
US$250,000 Wells Fargo & Co 5.125% 15/9/2016 185,933 0.18
US$290,000 Westpac Capital Trust III '144A'
5.819% 30/9/2013 (Perpetual) 218,314 0.21
US$2,000,000 ZFS Finance USA Trust I '144A'
6.45% 15/12/2065 1,551,805 1.52
€550,000 Zurich Finance USA EMTN 4.5%
17/9/2014
___________
554,301
______
0.54
___________
12,450,488
______
12.20
Total Transferable Securities Admitted
to an Official Stock Exchange Listing or
Dealt in on Another Regulated Market
___________
57,782,340
______
56.58
Unquoted Securities
BONDS
France
US$450,000 Societe Generale '144A' 5.75%
20/4/2016
___________
347,788
______
0.34
US$990,000
Jersey
HSBC Capital Funding
(Jersey Channel Islands) '144A' 4.61%
27/6/2013 (Perpetual) (Pref)
___________
710,474
______
0.70
United States
US$260,000 Swiss Re Capital I 6.854%
25/5/2016 (Perpetual) (Pref)
___________
207,815
______
0.20
Total Unquoted Securities
___________
1,266,077
______
1.24
Total Portfolio 59,048,417 57.82
Other Net Assets
___________
43,073,334
______
42.18
Total Net Assets (€)
___________
102,121,751
______
100.00
The notes on pages 213 to 219 form an integral part of these financial statements.
Audited Annual Report and Accounts 119