Merrill Lynch International Investment Funds Audited Annual Report ...

Japan Fund (1)
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 (¥) %
COMMON STOCKS (SHARES)
Japan
97,700 Astellas Pharma 528,557,000 1.83
149,000 Bank of Fukuoka 129,332,000 0.45
754,000 Bank of Yokohama 702,728,000 2.44
115,700 Benesse 524,121,000 1.82
84,500 Canon 566,150,000 1.96
238,600 Casio Computer 644,220,000 2.23
79,000 Chiyoda 184,070,000 0.64
224,000 COMSYS Holdings 295,232,000 1.02
179,900 Credit Saison 737,590,000 2.56
251,000 Dainippon Screen Manufacturing 268,319,000 0.93
109,500 Don Quijote 249,112,500 0.86
197,900 EDION 349,293,500 1.21
103,100 FamilyMart 334,044,000 1.16
616,000 Haseko 262,416,000 0.91
366,000 Hiroshima Bank 252,540,000 0.88
138,900 Hitachi Maxell 246,547,500 0.85
130,800 Honda Motor 614,760,000 2.13
215,300 Hoya 998,992,000 3.47
398 Inpex Holdings 389,244,000 1.35
113,000 Iyo Bank 126,673,000 0.44
127,900 JS Group 320,389,500 1.11
1,219,000 Kajima 636,318,000 2.21
197,100 Kansai Electric Power 632,691,000 2.19
485,000 Kansai Paint 456,870,000 1.58
1,621 KDDI 1,308,147,000 4.54
109,100 Kokuyo 205,217,100 0.71
58,300 Makita 212,795,000 0.74
1,161,000 Mitsubishi Electric 1,260,846,000 4.37
968 Mitsubishi UFJ Financial Group 1,422,960,000 4.94
166,000 Mitsubishi UFJ Securities 219,452,000 0.76
Transferable Securities Admitted to an Official Stock Exchange
Listing or Dealt in on Another Regulated Market
Holding Description Value (¥) %
421,000 Mitsui & Co 749,380,000 2.60
3,016 Monex Beans Holdings 278,980,000 0.97
1,175 NET One Systems* 184,475,000 0.64
69,300 Nidec 637,560,000 2.21
229,000 Nippon Electric Glass 572,500,000 1.99
839 Nippon Paper Group 376,711,000 1.31
1,135,000 Nippon Steel 776,340,000 2.69
854,400 Nissan Motor 1,224,355,200 4.25
750,000 Nisshin Steel 331,500,000 1.15
426,000 NTN 454,542,000 1.58
1,725 NTT Urban Development 396,750,000 1.38
13,150 ORIX 453,017,500 1.57
3,477 Rakuten 192,973,500 0.67
4,919 SBI Holdings 197,251,900 0.68
26,500 Shimamura 362,255,000 1.26
28,100 Sumco 282,686,000 0.98
313,800 Sumitomo Electric Industries 583,668,000 2.02
1,281 Sumitomo Mitsui Financial Group 1,562,820,000 5.42
34,950 T&D Holdings 275,056,500 0.95
66,200 Takeda Pharmaceutical 540,854,000 1.88
35,340 Takefuji 166,451,400 0.58
76,400 Terumo 357,552,000 1.24
434,000 Tokyu Land 486,948,000 1.69
238,600 Toyota Motor 1,899,256,000 6.59
224,000 Yokohama Rubber 160,832,000 0.56
117,000 Zeon
___________
150,462,000
______
0.52
Total Portfolio 28,734,804,100 99.67
Other Net Assets
___________
93,939,741
______
0.33
Total Net Assets (¥) 28,828,743,841
___________ ______
100.00
(1) Base currency changed, see Note 1, for further details.
( * ) Security lent, see Note 13 for further details.
Sector Breakdown as at 31 December 2006
% of net
assets
Finance 25.7
Consumer discretionary 23.2
Industrials 16.3
Information technology 13.0
Materials 7.3
Healthcare 5.0
Telecommunication services 4.5
Utilities 2.2
Energy 1.4
Consumer staples 1.1
Other net assets
___________
0.3
___________
100.0
EUR Hedged Share Class
Open Forward Foreign Exchange Transactions
as at 31 December 2006
Purchases
Sales Value date
Unrealised
profit/(loss)
€
€111,000 ¥16,846,814 15/3/2007 2,869
¥463,242 €3,000 15/3/2007
_______
(27)
Net unrealised profit
_______
2,842
Note: The Yen equivalent – ¥445,208 of the net unrealised profit attributed to these transactions
is included in the Statement of Net Assets (see Note 2c). As at the 29 December 2006, the
exchange rate used to convert from € is the year-end exchange rate of: 1 ¥ = 0.00638 €
(see Note 2e).
The notes on pages 213 to 219 form an integral part of these financial statements.
Audited Annual Report and Accounts 149