Merrill Lynch International Investment Funds Audited Annual Report ...

US SmallCap Value Fund 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 (US$) %
34,200 Playboy Enterprises 'B' 392,958 0.25
41,100 Presidential Life 908,721 0.59
8,900 Progress Software 251,247 0.16
112,800 RadioShack 1,900,680 1.23
32,400 Rayonier (Reit) 1,334,880 0.86
18,300 Reliance Steel & Aluminum 723,948 0.47
52,800 Rowan 1,756,656 1.14
104,300 Sapient 576,779 0.38
23,300 Scholastic 840,198 0.54
51,100 Smithfield Foods 1,321,446 0.85
252,900 Smurfit-Stone Container 2,716,146 1.76
17,600 Spirit Aerosystems Holdings 'A' 565,488 0.37
33,100 Steel Dynamics 1,083,363 0.70
17,700 Sterling Financial/WA 604,809 0.39
51,000 SupportSoft 281,520 0.18
8,400 Swift Transportation 223,524 0.14
232,800 Tellabs 2,430,432 1.57
49,000 Tenet Healthcare 345,450 0.22
59,900 Tetra Tech 1,095,571 0.71
25,500 Texas Capital Bancshares 518,670 0.34
90,300 Timken 2,698,164 1.74
56,900 Triumph Group 3,008,303 1.94
Transferable Securities Admitted to an Official Stock Exchange
Listing or Dealt in on Another Regulated Market
Holding Description Value (US$) %
71,600 United Rentals 1,847,996 1.19
65,100 Universal Technical Institute 1,460,844 0.94
20,000 US Xpress Enterprises 'A' 335,800 0.22
162,400 Valassis Communications 2,356,424 1.52
16,400 Valspar 459,036 0.30
91,400 Vical 573,078 0.37
77,300 Wabash National 1,166,457 0.75
51,700 Waddell & Reed Financial 'A' 1,418,131 0.92
157,100 webMethods 1,189,247 0.77
61,600 Webster Financial 3,022,712 1.95
229,200 Westell Technologies 'A' 591,336 0.38
68,500 Wright Medical Group 1,624,820 1.05
62,000 Zoran
___________
911,400
______
0.59
___________
141,936,756
______
91.70
Total Common Stocks (Shares)
___________
146,791,768
______
94.83
Total Portfolio 153,206,611 98.98
Other Net Assets
___________
1,582,946
______
1.02
Total Net Assets (US$)
___________
154,789,557
______
100.00
Sector Breakdown as at 31 December 2006
% of net
assets
Finance 24.7
Information technology 18.2
Industrials 13.5
Consumer discretionary 12.4
Healthcare 10.6
Energy 9.2
Investment funds 4.2
Materials 3.4
Consumer staples 1.9
Utilities 0.9
Other net assets
___________
1.0
___________
100.0
The notes on pages 213 to 219 form an integral part of these financial statements.
Audited Annual Report and Accounts 195