Merrill Lynch International Investment Funds Audited Annual Report ...

Continental European Flexible 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 & PREFERRED STOCKS (SHARES)
Austria
16,348 Bank Austria Creditanstalt
___________
1,958,490
______
1.03
Belgium
18,222 Umicore
___________
2,348,816
______
1.23
Denmark
109,973 Danske Bank
___________
3,695,666
______
1.95
Finland
154,795 Fortum
___________
3,337,380
______
1.76
France
74,103 Alten 2,087,482 1.10
81,603 AXA 2,510,108 1.33
125,662 Legrand 2,787,183 1.47
40,931 Societe Generale 5,300,565 2.80
95,228 Total 5,223,256 2.76
14,962 Vallourec
___________
3,305,106
______
1.74
___________
21,213,700
______
11.20
Germany
30,837 Allianz SE 4,772,334 2.52
34,337 Altana 1,613,839 0.85
99,731 Bayer 4,055,062 2.14
86,720 BMW – Bayerische Motoren Werke 3,773,187 1.99
36,432 Deutsche Postbank 2,330,555 1.23
45,022 E.ON 4,629,612 2.45
22,776 Fresenius (Pref) 3,708,161 1.96
62,297 Hypo Real Estate Holding 2,974,059 1.57
22,399 Interhyp 1,467,135 0.77
21,976 Muenchener Rueckversicherungs 2,866,110 1.51
32,181 RWE 2,687,114 1.42
129,227 Symrise
___________
2,519,926
______
1.33
___________
37,397,094
______
19.74
Greece
147,297 EFG Eurobank Ergasias 4,041,830 2.13
87,226 Piraeus Bank
___________
2,130,059
______
1.13
___________
6,171,889
______
3.26
Guernsey
67,790 Eurocastle Investment 2,569,241 1.36
191,372 KKR Private Equity Investors (Unit)
___________
3,295,262
______
1.74
___________
5,864,503
______
3.10
Iceland
290,360 Kaupthing Bank
___________
2,609,389
______
1.38
Ireland
186,978 Allied Irish Banks 4,207,005 2.22
255,330 Anglo Irish Bank 4,011,234 2.12
254,042 Grafton Group (Unit) 3,195,848 1.69
173,786 Kingspan Group 3,493,099 1.84
162,656 McInerney Holdings
___________
2,407,309
______
1.27
___________
17,314,495
______
9.14
Transferable Securities Admitted to an Official Stock Exchange
Listing or Dealt in on Another Regulated Market
Holding Description Value (€) %
Italy
598,272 Banca Intesa 3,392,202 1.79
153,255 ENI 3,914,133 2.07
139,074 Saipem 2,752,274 1.45
1,510,476 Telecom Italia 3,474,095 1.83
881,087 UniCredito Italiano
___________
5,868,039
______
3.10
___________
19,400,743
______
10.24
Netherlands
119,125 Mittal Steel
___________
3,816,765
______
2.01
Norway
620,597 Acta Holding 2,476,637 1.31
138,932 Statoil
___________
2,784,842
______
1.47
___________
5,261,479
______
2.78
Spain
85,745 Altadis 3,388,642 1.79
265,452 BBVA – Banco Bilbao Vizcaya Argentaria 4,836,535 2.55
70,671 Inditex 2,871,363 1.51
370,744 Telefonica
___________
5,961,564
______
3.15
___________
17,058,104
______
9.00
Sweden
149,188 Atlas Copco 'A' 3,820,002 2.02
1,734,405 Telefonaktiebolaget LM Ericsson 'B'
___________
5,294,663
______
2.79
___________
9,114,665
______
4.81
Switzerland
85,921 Compagnie Financiere Richemont 'A' 3,796,211 2.00
106,962 Credit Suisse Group 5,633,780 2.97
58,471 Holcim 4,065,082 2.15
7,573 Nobel Biocare Holding (Bearer) 1,700,052 0.90
166,001 Novartis 7,246,608 3.82
124,556 UBS 5,731,698 3.02
15,386 Zurich Financial Services
___________
3,133,459
______
1.66
___________
31,306,890
______
16.52
Total Portfolio 187,870,068 99.15
Other Net Assets
___________
1,607,876
______
0.85
Total Net Assets (€)
___________
189,477,944
______
100.00
(1) Fund name changed, see Note 1, for further details.
The notes on pages 213 to 219 form an integral part of these financial statements.
Audited Annual Report and Accounts 71