UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5149
811-10631
Name of Fund: Merrill Lynch Funds for Institutions Series
Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
Merrill Lynch Institutional Tax-Exempt Fund
Merrill Lynch Government Fund
Merrill Lynch Treasury Fund
Master Institutional Money Market Trust
Master Premier Institutional Fund
Master Institutional Fund
Master Institutional Tax-Exempt Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, Merrill Lynch
Funds for Institutions Series and Master Institutional Money Market Trust,
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: 04/30/04
Date of reporting period: 05/01/03 - 04/30/04
Item 1 - Report to Stockholders
Annual Report
[Merrill Lynch Investment Managers logo]
MERRILL LYNCH FUNDS FOR INSTITUTIONS SERIES
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Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
Merrill Lynch Government Fund
Merrill Lynch Treasury Fund
Merrill Lynch Institutional Tax-Exempt Fund
April 30, 2004
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Dear Shareholder:
We are pleased to provide you with this Annual Report for the Merrill
Lynch Funds For Institutions Series.
Market Environment
Short-term interest rates were quite volatile during the 12-month period
ended April 30, 2004, and ended the year significantly higher than where they
began. The yield on the two-year U.S. Treasury note opened the period at 1.49%
on April 30, 2003 and closed at 2.32% on April 30, 2004.
Early in the period, when fears of poor economic data and deflation were
at their highest, the short end of the yield curve rallied amid speculation
that the Federal Reserve Board would potentially slash interest rates to a
level below 1.00%. The Fed had reduced the target Federal Funds rate to 1.00%
in June 2003. Consequently, as fiscal stimulus and the effects of lower
interest rates began to have a positive effect on the economy, the yield curve
steepened. Following an extended period of limited job growth, the U.S.
Department of Labor reported that non-farm payrolls jumped by 308,000 and
288,000 in March and April 2004, respectively. The yield curve steepening
accelerated in response to the employment data. The curve between the Federal
Funds rate and the two-year Treasury note was as steep as 1.60%, reflecting the
markets' perception that the Fed was behind the curve and would need to tighten
monetary policy aggressively.
Fund Performance
Merrill Lynch Premier Institutional Fund
The Fund's net yield for the year ended April 30, 2004 was 1.05%. The
Fund's seven-day net annualized yield as of April 30, 2004 was .98%. The Master
Premier Institutional Fund's average portfolio maturity at April 30, 2004 was
67 days, compared to 65 days at October 31, 2003.
Merrill Lynch Institutional Fund
The Fund's net yield for the year ended April 30, 2004 was .97%. The
Fund's seven-day net annualized yield as of April 30, 2004 was .90%. The Master
Institutional Fund's average portfolio maturity at April 30, 2004 was 57 days,
unchanged from 57 days at October 31, 2003.
Merrill Lynch Government Fund
The Fund's net yield for the year ended April 30, 2004 was .94%. The
Fund's seven-day net annualized yield as of April 30, 2004 was .87%. The Fund's
average portfolio maturity at April 30, 2004 was 58 days, compared to 57 days
at October 31, 2003.
Merrill Lynch Treasury Fund
The Fund's net yield for the year ended April 30, 2004 was .80%. The
Fund's seven-day net annualized yield as of April 30, 2004 was .75%. The Fund's
average portfolio maturity at April 30, 2004 was 60 days, compared to 58 days
at October 31, 2003.
1
Merrill Lynch Institutional Tax-Exempt Fund
The Fund's net yield for the year ended April 30, 2004 was .84%. The
Fund's seven-day net annualized yield as of April 30, 2004 was .88%. The Master
Institutional Tax-Exempt Fund's average portfolio maturity at April 30, 2004
was 48 days, compared to 54 days at October 31, 2003.
Portfolio Strategy
Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
Early in the period, we believed the Federal Reserve Board would leave
short-term interest rates low as long as the employment situation was weak and
deflation remained a concern. With that in mind, we added some longer-dated
callable U.S. agency securities to the portfolios because they offered yield
enhancement and the potential for price appreciation. Yield spreads on callable
agency securities relative to straight bullet issues were wide, as interest
rate volatility remained at the higher end of the historical range for most of
the year.
We continued to position the Funds in a barbelled manner. Investments were
split in the longer-dated callable U.S. agency securities and the
three-month-and-under sectors. We employed this strategy because there was no
pick-up in yield in the three-month to one-year sectors. The yield curve was
flat in this area, with no increase in yield until the 15-month to two-year
sector. For the balance of the period, almost 50% of the portfolios' net assets
were invested in variable-rate products, which we consider consistent with the
short end of our investment spectrum. This position served as part of the
barbell trade and to protect the portfolio in case an unforeseen rise in
interest rates did occur.
Based on our belief that the Fed will tighten monetary policy at one of
its next two meetings, we recently restricted our investments to those that
would mature before the Federal Open Market Committee meeting on June 30, 2004.
Although some longer-dated investments appear attractive to us at current
levels, we believe it is prudent to maintain maximum liquidity, especially in
the early stages of a tightening cycle.
Merrill Lynch Government Fund
As the period began, we sought to maintain the Fund's average life in the
upper 50-day range. Our strategy was to reduce our dependence on the overnight
market while emphasizing fixed-rate structures and floating-rate notes. Against
a backdrop of mixed economic reports, a steeper yield curve developed, which
enabled us to add longer-dated agency bullets and callable securities with
longer non-call features at attractive levels versus Treasury issues. On the
floating-rate front, we added prime rate and LIBOR-based floaters that recently
were trading at historically tight levels to money market products. For most of
the period, our portfolio was concentrated in securities that would mature in
90 days or less and, on the longer end, our focus varied between one and two
years, given interest rate levels and the shape of the yield curve. By the end
of the period, our goal was to protect the Fund against eventual higher
interest rates by increasing our holdings in floating-rate products to nearly
half of the portfolio's assets.
Recent employment gains have suggested that job growth is catching up with
the overall economy. Given that measured interest rate hikes are likely
forthcoming, we will look to increase the Fund's liquidity profile, a strategy
we believe is prudent in the early stages of a higher interest rate cycle.
2
Merrill Lynch Treasury Fund
Throughout most of the period, we sought to maintain the Fund's average
life at or near the 60-day limit. We continued to use four-week Treasury bills
as a liquidity base for maturing bills and adjusted our focus in the Fund's
longer-dated investments as the yield curve shifted directions frequently. As
the yield curve steepened and as the market appeared oversold, we extended our
focus from the six- to nine-month sector to the 18- to 24-month sector. In the
front end of the curve, we sought to enhance yield by selling bills at profits
prior to the announcements of their reopenings. We used gains to offset any
losses while extending out on the curve for modest incremental yield. We then
would reinvest the proceeds from maturing bills into the new bills at higher
levels.
Currently, the Treasury calendar has favored issuance in the longer end.
Increased tax receipts have allowed bill supply to be somewhat stable, and
recent steepening in the yield curve suggests a shift of market sentiment
toward higher interest rates. Our current structure will favor increasing
liquidity, although some longer-dated maturities appear to have value.
Merrill Lynch Institutional Tax-Exempt Fund
Throughout the period, we used a neutral investment strategy in our
approach to the short-term municipal market. Although the period was
characterized by improvement in most sectors of the economy, a lack of job
growth led market participants to believe that the Federal Reserve Board would
keep interest rates low for an extended period of time. Fixed-rate municipal
notes continued to offer some incremental yield over variable-rate demand note
(VRDN) securities, given the Federal Reserve's bias toward keeping short-term
interest rates at their current levels. Although the majority of the
municipalities had already brought their annual issuance to market, we looked
to maintain our allocation to fixed-rate municipal note holdings close to our
peer group average by focusing on attractively priced smaller municipal note
deals. However, as the Fund continued to grow, we were obligated at times to
pursue volatile VRDN securities and tax-exempt commercial paper (TECP) as
investment alternatives.
After the Fund's net assets reached a record high of $10.4 billion on
December 8, 2003, we began to concentrate on increasing our exposure to highly
liquid daily VRDN securities to combat the anticipated high redemptions that
ultimately reduced the Fund's assets to $9.5 billion by the end of December.
The redemptions were the result of Florida shareholders adjusting their
portfolios because of the resident intangibles tax that is still in place. At
the same time, we began to anticipate the timing of large subscriptions that
would occur as Florida shareholders readjusted their portfolios in January by
replacing VRDN securities sold at year-end. Because of the yield advantage of
tax-exempt securities versus the after-tax yields of their taxable
counterparts, the Fund's assets continued to rise to a record $12.1 billion on
March 10, 2004. Fixed-rate municipal note yields declined to approximately
1.05% as limited new municipal issuance gave way to large seasonal demand. In
addition, VRDN security and TECP yields traded in the .85% to 1% range.
Although we continued to try to match our fixed-rate note percentage to our
peer group average, we were selective in our pursuit as yields hovered near
historic lows. As the period came to a close, we were experiencing seasonal
tax-related redemptions, which allowed the Fund's assets to end the period at
$11.0 billion. In addition, we experienced the first indications that economic
growth was finally translating into job growth while a rise in oil prices was
contributing to an upswing in inflation.
3
In light of the changing economic environment and rhetoric from various
Federal Reserve Board members, we are monitoring market participant reaction
and are looking to adjust our investment strategy in the upcoming period to a
more cautious approach to the short-term municipal market. We are anticipating
matching our peer group average in fixed-rate note percentage. However, because
of timing issues and our cautious investment approach, the Fund may at times
have an average life below our peer group average. As municipalities' annual
issuance begins in the upcoming period, we will be selective in our pursuit of
fixed-rate notes. We continue to closely monitor credit quality while offering
shareholders an attractive tax-exempt yield.
We thank you for your investment in Merrill Lynch Funds For Institutions
Series, and we look forward to serving your investment needs in the months and
years ahead.
Sincerely,
/s/ Terry K. Glenn /s/ P. Michael Walsh
Terry K. Glenn P. Michael Walsh
President and Trustee Vice President and Portfolio Manager
Merrill Lynch Funds For Institutions Series Merrill Lynch Premier Institutional Fund
Merrill Lynch Institutional Fund
/s/ Kevin A. Schiatta /s/ John Ng
Kevin A. Schiatta John Ng
Vice President and Portfolio Manager Vice President and Portfolio Manager
Merrill Lynch Institutional Tax-Exempt Fund Merrill Lynch Government Fund
Merrill Lynch Treasury Fund
June 21, 2004
4
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Merrill Lynch Premier Institutional Fund
Statement of Assets and Liabilities
April 30, 2004
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Assets:
Investment in the Master Premier Institutional Fund, at value
(identified cost $45,729,036,230) (Note 1a) ................................................ $45,728,348,231
Prepaid expense ............................................................................. 430,529
---------------
Total assets ............................................................................. 45,728,778,760
---------------
Liabilities:
Administration fee payable (Note 2) ......................................................... 4,749,362
Dividends payable ........................................................................... 14,925,139
Accrued expenses ............................................................................ 394,142
---------------
Total liabilities ........................................................................ 20,068,643
---------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
45,709,398,116 shares of beneficial interest outstanding) .................................. $45,708,710,117
===============
Net Assets Consist of:
Paid-in capital ............................................................................. $45,709,398,116
Unrealized depreciation ..................................................................... (687,999)
---------------
Total ....................................................................................... $45,708,710,117
===============
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Merrill Lynch Premier Institutional Fund
Statement of Operations
For the Year Ended April 30, 2004
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Investment Income:
Investment income allocated from Master Premier Institutional Fund .......................... $ 603,599,961
Expenses allocated from Master Premier Institutional Fund ................................... (26,123,796)
-------------
Total investment income .................................................................. 577,476,165
-------------
Expenses:
Administration fee (Note 2) ................................................................. 50,138,201
Registration fees ........................................................................... 3,257,563
Accounting services ......................................................................... 460,109
Legal and audit fees ........................................................................ 386,696
Dividend and transfer agency fees ........................................................... 320,748
Insurance ................................................................................... 293,163
Trustees' fees (Note 5) ..................................................................... 170,837
Printing and shareholder reports ............................................................ 167,296
Miscellaneous ............................................................................... 240,332
-------------
Total expense ............................................................................ 55,434,945
-------------
Net investment income .................................................................... 522,041,220
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions allocated from Master Premier
Institutional Fund ........................................................ $ 3,079,426
Net unrealized depreciation of investments ................................. (28,102,314)
-------------
Net realized and unrealized loss on investments .......................................... (25,022,888)
-------------
Net Increase in Net Assets Resulting From Operations ........................................ $ 497,018,332
=============
See Notes to Financial Statements.
5
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Merrill Lynch Premier Institutional Fund Year Ended April 30,
Statements of Changes in Net Assets --------------------------------------
2004 2003
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Increase (Decrease) in Net assets:
Operations:
Net investment income .................................................................. $ 522,041,220 $ 775,590,322
Net realized gain from investment transactions ......................................... 3,079,426 6,270,875
Net unrealized appreciation (depreciation) of investments .............................. (28,102,314) 1,610,421
--------------- ----------------
Net increase in net assets resulting from operations ................................... 497,018,332 783,471,618
Total declared as dividends to shareholders (Note 4) ................................... (525,120,646) (781,861,197)
Capital share transactions (Note 3) .................................................... 1,160,152,122 (1,793,140,116)
--------------- ----------------
Net increase (decrease) in net assets .................................................. 1,132,049,808 (1,791,529,695)
Net Assets:
Beginning of year ...................................................................... 44,576,660,309 46,368,190,004
--------------- ----------------
End of year ............................................................................ $45,708,710,117 $ 44,576,660,309
=============== ================
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Merrill Lynch Premier Institutional Fund
Financial Highlights
Year Ended April 30,
------------------------------------------------------------------------------
2004 2003 2002 2001 2000
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Net Asset Value, beginning of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ....................... .011 .016 .030 .061 .054
Less Distributions:
Dividends from net investment income ........ (.011) (.016) (.030) (.061) (.054)
Dividends from net realized gain ............ --(1) -- -- -- --
------ ------ ------ ------ ------
Net Asset Value, end of year ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return ................................. 1.06% 1.61% 3.00% 6.32% 5.51%
Ratios/Supplemental Data:
Net Assets, end of year (000) ............... $45,708,710 $44,576,660 $46,368,190 $27,661,546 $14,524,859
Ratio of expenses to average net assets ..... .16% .16% .17% .18% .18%
Ratio of net investment income to average
net assets ................................ 1.04% 1.59% 2.82% 6.25% 5.40%
(1) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
6
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Merrill Lynch Institutional Fund
Statement of Assets and Liabilities
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Assets:
Investment in the Master Institutional Fund, at value
(identified cost $10,602,949,456) (Note 1a) ...................................... $10,603,172,859
Prepaid expense ................................................................... 198,923
---------------
Total assets ................................................................... 10,603,371,782
---------------
Liabilities:
Administration fee payable (Note 2) ............................................... 1,585,679
Dividends payable ................................................................. 528,534
Accrued expenses .................................................................. 228,857
---------------
Total liabilities .............................................................. 2,343,070
---------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
10,600,805,309 shares of beneficial interest outstanding) ........................ $10,601,028,712
===============
Net Assets Consist of:
Paid-in capital ................................................................... $10,600,805,309
Unrealized appreciation ........................................................... 223,403
---------------
Total ............................................................................. $10,601,028,712
===============
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Merrill Lynch Institutional Fund
Statement of Operations
For the Year Ended April 30, 2004
- ------------------------------------------------------------------------------------------------------
TABLE>
Investment Income:
Interest and discount allocated from Master Institutional Fund ..................... $144,153,245
Expenses allocated from Master Institutional Fund .................................. (6,355,237)
------------
Total investment income ......................................................... 137,798,008
------------
Expenses:
Administration fee (Note 2) ........................................................ 18,172,012
Dividend and transfer agency fees .................................................. 1,647,725
Registration fees .................................................................. 1,134,263
Accounting services ................................................................ 241,575
Legal and audit fees ............................................................... 100,090
Insurance .......................................................................... 74,139
Printing and shareholder reports ................................................... 62,609
Trustees' fees (Note 5) ............................................................ 42,949
Miscellaneous ...................................................................... 95,878
------------
Total expense ................................................................... 21,571,240
------------
Net investment income ........................................................... 116,226,768
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions allocated from Master
Institutional Fund ................................................ $ 580,917
Net unrealized depreciation of investments ......................... (5,844,766)
------------
Net realized and unrealized loss on investments ................................. (5,263,849)
------------
Net Increase in Net Assets Resulting From Operations ............................... $110,962,919
============
See Notes to Financial Statements.
7
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Merrill Lynch Institutional Fund Year Ended April 30,
Statements of Changes in Net Assets --------------------------------------
2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
Decrease in Net assets:
Operations:
Net investment income ................................................................. $ 116,226,768 $ 201,649,749
Net realized gain from investment transactions ........................................ 580,917 1,558,230
Net unrealized depreciation of investments ............................................ (5,844,766) (177,624)
---------------- ----------------
Net increase in net assets resulting from operations .................................. 110,962,919 203,030,355
Total declared as dividends to shareholders (Note 4) .................................. (116,807,685) (203,207,979)
Capital share transactions (Note 3) ................................................... (1,052,145,990) (1,175,716,541)
---------------- ----------------
Net decrease in net assets ............................................................ (1,057,990,756) (1,175,894,165)
Net Assets:
Beginning of year ..................................................................... 11,659,019,468 12,834,913,633
---------------- ----------------
End of year ........................................................................... $ 10,601,028,712 $ 11,659,019,468
================ ================
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Merrill Lynch Institutional Fund Year Ended April 30,
Financial Highlights -----------------------------------------------------------------------------
2004 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, beginning of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ....................... .010 .015 .029 .061 .053
Less Distributions:
Dividends from net investment income ........ (.010) (.015) (.029) (.061) (.053)
Dividends from net realized gain ............ --(1) -- -- -- --
------- ------ ------ ------ ------
Net Asset Value, end of year ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ====== ====== ====== ======
Total Return ................................. .97% 1.54% 2.89% 6.25% 5.45%
Ratios/Supplemental Data:
Net Assets, end of year (000) ............... $10,601,029 $11,659,019 $12,834,914 $10,815,790 $8,080,268
Ratio of expenses to average net assets
(before waiver) ........................... .23% .23% .32% .37% .37%
Ratio of expenses to average net assets
(after waiver) ............................ -- -- .23% .24% .24%
Ratio of net investment income to average
net assets (before waiver) ................ .96% 1.53% 2.73% 6.01% 5.14%
Ratio of net investment income to average
net assets (after waiver) ................. -- -- 2.82% 6.14% 5.27%
(1) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
8
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Merrill Lynch Government Fund
Schedule of Investments
April 30, 2004
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Interest Maturity Value
Face Amount Rate* Date (Note 1a)
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U.S. $ 50,000,000 U.S. Treasury Notes .................... 1.75% 12/31/04 $50,140,625
Government & 50,000,000 Fannie Mae ............................. 7.13 02/15/05 52,187,500
Agency 30,000,000 Fannie Mae ............................. 1.75 05/23/05 30,000,000
Issues -- 16.0% 15,000,000 Fannie Mae ............................. 1.45 07/08/05 14,934,375
15,000,000 Fannie Mae ............................. 2.34 09/16/05 15,042,187
14,275,000 Fannie Mae ............................. 2.00 10/21/05 14,252,695
15,000,000 Fannie Mae ............................. 2.30 11/14/05 15,004,687
20,000,000 Federal Farm Credit Banks .............. 1.97 10/20/04 20,075,000
17,000,000 Federal Farm Credit Banks .............. 1.50 04/01/05 16,962,812
7,000,000 Federal Farm Credit Banks .............. 5.85 06/10/05 7,312,025
25,000,000 Federal Home Loan Banks ................ 2.13 12/15/04 25,125,000
50,000,000 Federal Home Loan Banks ................ 4.13 01/14/05 50,937,500
25,000,000 Federal Home Loan Banks ................ 1.20 04/01/05 24,914,063
25,000,000 Federal Home Loan Banks ................ 1.63 06/15/05 24,960,937
25,000,000 Federal Home Loan Banks ................ 1.63 07/29/05 24,929,688
10,000,000 Federal Home Loan Banks ................ 2.00 10/20/05 9,990,625
30,000,000 Federal Home Loan Banks ................ 2.25 12/15/05 30,009,375
27,000,000 Freddie Mac ............................ 1.46 11/17/04 27,028,620
25,000,000 Freddie Mac ............................ 3.88 02/15/05 25,460,938
15,000,000 Freddie Mac ............................ 2.29 10/28/05 15,038,565
10,000,000 Freddie Mac ............................ 2.13 11/15/05 10,003,125
15,000,000 Freddie Mac ............................ 2.14 02/24/06 14,945,565
23,000,000 Student Loan Marketing Assoc. .......... 3.38 07/15/04 23,107,812
25,000,000 Fannie Mae D/N ......................... 1.36 09/17/04 24,897,500
50,000,000 Fannie Mae D/N ......................... 1.22 02/04/05 49,449,995
25,000,000 Federal Home Loan Banks D/N ............ 1.20 03/24/05 24,667,500
9,505,000 Freddie Mac D/N ........................ 1.25 11/04/04 9,445,119
38,000,000 Freddie Mac D/N ........................ 1.22 12/06/04 37,703,600
75,000,000 Freddie Mac D/N ........................ 1.09 12/27/04 74,362,493
25,000,000 Freddie Mac D/N ........................ 1.38 12/30/04 24,785,000
100,000,000 Freddie Mac D/N ........................ 1.22 01/11/05 99,030,000
4,000,000 Freddie Mac D/N ........................ 1.16 03/08/05 3,949,600
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Total U.S. Government & Agency Issues
(Cost $891,129,825) .................... 890,654,526
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See Notes to Financial Statements.
9
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Merrill Lynch Government Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
U.S. $ 100,000,000 Fannie Mae .............................. 0.97% 05/27/04 $ 99,996,781
Government 100,000,000 Fannie Mae .............................. 1.00 09/10/04 99,990,057
Agency 50,000,000 Fannie Mae .............................. 1.00 10/28/04 49,992,603
Issues -- 50,000,000 Fannie Mae .............................. 1.04 01/18/05 49,989,210
Variable 50,000,000 Fannie Mae .............................. 1.07 01/28/05 49,984,550
Rate -- 50.1% 50,000,000 Fannie Mae .............................. 1.04 02/18/05 49,993,874
250,000,000 Fannie Mae .............................. 1.06 04/28/05 249,962,507
500,000,000 Fannie Mae .............................. 1.07 07/29/05 499,906,142
75,000,000 Fannie Mae .............................. 0.98 08/29/05 74,952,382
75,000,000 Fannie Mae .............................. 1.01 02/17/06 74,966,766
100,000,000 Federal Farm Credit Banks ............... 0.98 08/24/04 99,988,943
50,000,000 Federal Farm Credit Banks ............... 1.05 12/02/04 50,000,000
100,000,000 Federal Farm Credit Banks ............... 1.01 12/15/04 99,996,902
48,400,000 Federal Farm Credit Banks ............... 1.02 02/28/05 48,395,988
100,000,000 Federal Farm Credit Banks ............... 1.02 03/24/05 99,982,107
75,000,000 Federal Farm Credit Banks ............... 0.98 10/03/05 74,957,212
100,000,000 Federal Farm Credit Banks ............... 1.03 10/27/05 99,940,237
25,000,000 Federal Farm Credit Banks ............... 1.01 12/01/05 24,995,996
50,000,000 Federal Farm Credit Banks ............... 1.02 12/05/05 49,991,871
150,000,000 Federal Farm Credit Banks ............... 1.01 01/04/06 149,968,492
28,000,000 Federal Farm Credit Banks ............... 0.99 01/05/06 27,985,982
100,000,000 Federal Farm Credit Banks ............... 1.02 02/13/06 99,982,134
39,200,000 Federal Home Loan Banks ................. 1.01 08/19/04 39,197,635
100,000,000 Federal Home Loan Banks ................. 0.98 09/17/04 99,984,745
25,000,000 Federal Home Loan Banks ................. 0.99 09/27/04 24,996,814
60,000,000 Federal Home Loan Banks ................. 1.04 03/03/05 60,000,000
100,000,000 Federal Home Loan Banks ................. 1.01 07/26/05 99,975,047
50,000,000 Federal Home Loan Banks ................. 1.00 08/26/05 49,970,172
150,000,000 Freddie Mac ............................. 1.09 09/09/05 150,036,058
33,962,000 Freddie Mac ............................. 1.09 11/07/05 33,968,349
- ---------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $2,784,053,807) ................... 2,784,049,556
- ---------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
10
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Merrill Lynch Government Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------------------------------------------------
Repurchase $ 373,237,000 ABN AMRO Inc.,
Agreements** purchased on 04/30/04 .......................... 1.04% 05/03/04 $ 373,237,000
- -- 33.7% 460,000,000 Barclays Capital Inc.,
purchased on 04/30/04 .......................... 1.04 05/03/04 460,000,000
700,000,000 HSBC Securities (USA) Inc.,
purchased on 04/30/04 .......................... 1.05 05/03/04 700,000,000
67,000,000 State Street Bank & Trust,
purchased on 04/30/04 .......................... 0.99 05/03/04 67,000,000
275,000,000 UBS Warburg LLC,
purchased on 04/30/04 .......................... 1.03 05/03/04 275,000,000
- -------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $1,875,237,000) .......................... 1,875,237,000
- -------------------------------------------------------------------------------------------------------------------------------
Total Investments -- 99.8%
(Cost $5,550,420,632) .......................... 5,549,941,082
- -------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.2% .......... 9,092,636
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets -- Equivalent to $1.00
Per Share on 5,559,513,268
Shares of Beneficial Interest
Outstanding -- 100.0% .......................... $5,559,033,718
===============================================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2004, net unrealized depreciation amounted to $479,550
and is comprised of $387,205 in appreciation and $866,755 in depreciation.
* Repurchase Agreements bear interest payable at fixed dates or upon maturity.
Some U.S. Government and Agency Issues are purchased on a discount basis; the
interest rate shown is the discount paid at the time of purchase by the Fund.
Other U.S. Government and Agency Issues bear interest at the rates shown,
payable at fixed dates or upon maturity; the rates shown are the rates in
effect at April 30, 2004. For variable rate instruments, the next date on
which the interest rate is to be adjusted is deemed the maturity date for
valuation.
** Repurchase Agreements are fully collateralized by U.S. Government and Agency
Obligations.
D/N--Discount Notes
See Notes to Financial Statements.
11
- -------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Government Fund
Statement of Assets and Liabilities
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------------
Assets:
Investments in securities subject to repurchase agreements ........................ $1,875,237,000
Investments in other marketable securities ........................................ 3,674,704,082
--------------
Total investments at value (identified cost $5,550,420,632) (Note 1a) ............................ $5,549,941,082
Cash ................................................................................................ 5,321,421
Interest receivable ................................................................................. 5,282,075
Prepaid expense ..................................................................................... 11,169
--------------
Total assets ..................................................................................... 5,560,555,747
--------------
Liabilities:
Advisory fee payable (Note 2) ....................................................................... 1,124,802
Dividends payable ................................................................................... 278,294
Accrued expenses .................................................................................... 118,933
--------------
Total liabilities ................................................................................ 1,522,029
--------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
5,559,513,268 shares of beneficial interest outstanding) ........................................... $5,559,033,718
==============
Net Assets Consist of:
Paid-in capital ..................................................................................... $5,559,513,268
Unrealized depreciation ............................................................................. (479,550)
--------------
Total ............................................................................................... $5,559,033,718
==============
- -------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Government Fund
Statement of Operations
For the Year Ended April 30, 2004
- -------------------------------------------------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ........................................................................ $ 67,414,442
------------
Expenses:
Investment advisory fee (Note 2) ...................................................... $ 17,840,979
Registration fees ..................................................................... 1,003,310
Dividend and transfer agency fees ..................................................... 321,248
Accounting and custodian services ..................................................... 242,753
Legal and audit fees .................................................................. 47,554
Insurance ............................................................................. 32,278
Trustees' fees (Note 5) ............................................................... 20,420
Printing and shareholder reports ...................................................... 12,251
Miscellaneous ......................................................................... 62,329
------------
Total expense ...................................................................... 19,583,122
Waived investment advisory fee (Note 2) ............................................... (6,205,326) 13,377,796
------------ ------------
Net investment income ............................................................................ 54,036,646
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ........................................ 212,509
Net unrealized depreciation of investments ............................................ (3,326,277)
------------
Net realized and unrealized loss from investments ................................................ (3,113,768)
------------
Net Increase in Net Assets Resulting From Operations ................................................ $ 50,922,878
============
See Notes to Financial Statements.
12
- ----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Government Fund Year Ended April 30,
Statements of Changes in Net Assets ------------------------------------
2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
Increase in Net assets:
Operations:
Net investment income ............................................................. $ 54,036,646 $ 87,907,382
Net realized gain from investment transactions .................................... 212,509 1,203,104
Net unrealized appreciation (depreciation) of investments ......................... (3,326,277) 461,391
-------------- --------------
Net increase in net assets resulting from operations .............................. 50,922,878 89,571,877
Total declared as dividends to shareholders (Note 4) .............................. (54,249,155) (89,110,486)
Capital share transactions (Note 3) ............................................... 228,228,885 552,686,807
-------------- --------------
Net increase in net assets ........................................................ 224,902,608 553,148,198
Net Assets:
Beginning of year ................................................................. 5,334,131,110 4,780,982,912
-------------- --------------
End of year ....................................................................... $5,559,033,718 $5,334,131,110
============== ==============
- ----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Government Fund
Financial Highlights
Year Ended April 30,
----------------------------------------------------------------------------
2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ........................ .009 .015 .028 .060 .052
Less Distributions:
Dividends from net investment income ......... (.009) (.015) (.028) (.060) (.052)
Dividends from net realized gain ............. --(1) -- -- -- --
------- ------ ------ ------ ------
Net Asset Value, end of year .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return .................................. .94% 1.52% 2.80% 6.17% 5.34%
Ratios/Supplemental Data:
Net Assets, end of year (000) ................ $5,559,034 $5,334,131 $4,780,983 $2,961,793 $2,603,208
Ratio of expenses to average net assets
(before waiver) ............................ .34% .33% .35% .36% .35%
Ratio of expenses to average net assets
(after waiver) ............................. .23% .22% .24% .24% .24%
Ratio of net investment income to average
net assets (before waiver) ................. .82% 1.39% 2.59% 5.94% 5.07%
Ratio of net investment income to average
net assets (after waiver) .................. .93% 1.50% 2.70% 6.06% 5.18%
(1) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
13
- -----------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Schedule of Investments
April 30, 2004
- -----------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------------------------
U.S. $ 120,718,000 U.S. Treasury Bills .......... 0.93% 05/06/04 $120,702,490
Government 30,513,000 U.S. Treasury Bills .......... 0.87 05/13/04 30,504,202
Issues -- 103.2% 20,000,000 U.S. Treasury Bills .......... 0.89 05/13/04 19,994,067
18,000,000 U.S. Treasury Bills .......... 0.90 05/13/04 17,994,600
5,000,000 U.S. Treasury Bills .......... 0.93 05/13/04 4,998,458
135,000,000 U.S. Treasury Bills .......... 0.92 05/20/04 134,934,594
4,304,000 U.S. Treasury Bills .......... 0.93 05/20/04 4,301,899
5,064,000 U.S. Treasury Bills .......... 0.85 05/27/04 5,060,888
125,000,000 U.S. Treasury Bills .......... 0.89 05/27/04 124,919,797
50,000,000 U.S. Treasury Bills .......... 0.93 05/27/04 49,966,597
46,000,000 U.S. Treasury Bills .......... 0.94 05/27/04 45,968,937
70,000,000 U.S. Treasury Bills .......... 0.93 06/10/04 69,927,514
50,000,000 U.S. Treasury Bills .......... 0.94 06/10/04 49,948,000
15,000,000 U.S. Treasury Bills .......... 0.92 06/17/04 14,981,983
70,000,000 U.S. Treasury Bills .......... 0.94 06/24/04 69,901,825
25,000,000 U.S. Treasury Bills .......... 0.93 07/01/04 24,961,250
50,000,000 U.S. Treasury Bills .......... 0.95 07/01/04 49,922,500
50,000,000 U.S. Treasury Bills .......... 0.92 07/08/04 49,910,875
26,481,000 U.S. Treasury Bills .......... 0.95 07/08/04 26,433,798
25,000,000 U.S. Treasury Bills .......... 0.97 07/08/04 24,955,438
25,000,000 U.S. Treasury Bills .......... 0.93 07/15/04 24,951,181
3,537,000 U.S. Treasury Bills .......... 0.94 07/15/04 3,529,981
50,000,000 U.S. Treasury Bills .......... 0.95 07/22/04 49,891,640
55,000,000 U.S. Treasury Bills .......... 0.95 07/29/04 54,867,285
25,000,000 U.S. Treasury Bills .......... 0.96 07/29/04 24,939,378
50,000,000 U.S. Treasury Bills .......... 1.04 09/09/04 49,809,335
9,000,000 U.S. Treasury Bills .......... 1.00 09/30/04 8,959,073
10,000,000 U.S. Treasury Bills .......... 1.01 09/30/04 9,954,526
30,000,000 U.S. Treasury Bills .......... 1.02 10/07/04 29,853,333
10,000,000 U.S. Treasury Bills .......... 1.03 10/14/04 9,948,972
10,000,000 U.S. Treasury Bills .......... 1.09 10/14/04 9,948,972
5,000,000 U.S. Treasury Bills .......... 1.14 10/21/04 4,972,451
99,000,000 U.S. Treasury Notes .......... 2.88 06/30/04 99,309,375
10,700,000 U.S. Treasury Notes .......... 2.25 07/31/04 10,733,438
15,000,000 U.S. Treasury Notes .......... 2.13 08/31/04 15,051,563
See Notes to Financial Statements.
14
- --------------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- --------------------------------------------------------------------------------------------------------------
U.S. $ 10,000,000 U.S. Treasury Notes ............. 1.88% 09/30/04 $ 10,031,250
Government 15,000,000 U.S. Treasury Notes ............. 1.75 12/31/04 15,042,188
Issues 2,000,000 U.S. Treasury Notes ............. 1.50 02/28/05 2,000,625
(continued) 10,000,000 U.S. Treasury Notes ............. 1.63 03/31/05 10,009,375
2,500,000 U.S. Treasury Notes ............. 1.63 09/30/05 2,490,625
- --------------------------------------------------------------------------------------------------------------
Total Investments -- 103.2%
(Cost $1,386,550,033) ........... 1,386,584,278
- --------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other
Assets -- (3.2%) ................ (42,510,576)
- --------------------------------------------------------------------------------------------------------------
Net Assets -- Equivalent to $1.00
Per Share on 1,344,039,457
Shares of Beneficial Interest
Outstanding -- 100.0% ........... $1,344,073,702
==============================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2004, net unrealized appreciation amounted to $34,245 and
is comprised of $104,310 in appreciation and $70,065 in depreciation.
* U.S. Treasury Bills are purchased on a discount basis; the interest rate
shown is the discount paid at the time of purchase by the Fund. U.S. Treasury
Notes bear interest at the rates shown, payable at fixed dates or upon
maturity.
See Notes to Financial Statements.
15
- ------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Statement of Assets and Liabilities
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Assets:
Total investments at value (identified cost $1,386,550,033) (Note 1a) ............... $1,386,584,278
Cash ................................................................................ 28,010,250
Interest receivable ................................................................. 1,193,974
Receivable for investments sold ..................................................... 435,738
Prepaid expense ..................................................................... 45,027
--------------
Total assets ..................................................................... 1,416,269,267
--------------
Liabilities:
Advisory fee payable (Note 2) ....................................................... 261,289
Payable for fund shares repurchased ................................................. 46,940,744
Payable for investments purchased ................................................... 24,951,180
Accrued expenses .................................................................... 28,982
Dividends payable ................................................................... 13,370
--------------
Total liabilities ................................................................ 72,195,565
--------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
1,344,039,457 shares of beneficial interest outstanding) ........................... $1,344,073,702
==============
Net Assets Consist of:
Paid-in capital ..................................................................... $1,344,039,457
Unrealized appreciation ............................................................. 34,245
--------------
Total ............................................................................... $1,344,073,702
==============
- ------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund
Statement of Operations
For the Year Ended April 30, 2004
- ------------------------------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ........................................................ $13,649,667
-----------
Expenses:
Investment advisory fee (Note 2) .................................... $ 4,416,857
Dividend and transfer agency fees ................................... 131,992
Registration fees ................................................... 122,207
Accounting and custodian services ................................... 116,320
Legal and audit fees ................................................ 15,122
Insurance ........................................................... 9,331
Trustees' fees (Note 5) ............................................. 5,907
Printing and shareholder reports .................................... 3,971
Miscellaneous ....................................................... 35,257
------------
Total expense .................................................... 4,856,964
Waived investment advisory fee (Note 2) ............................. (1,734,934) 3,122,030
------------ -----------
Net investment income ............................................................ 10,527,637
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ...................... 110,131
Net unrealized depreciation of investments .......................... (435,562)
------------
Net realized and unrealized loss from investments ................................ (325,431)
-----------
Net Increase in Net Assets Resulting From Operations ................................ $10,202,206
===========
See Notes to Financial Statements.
16
- ------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund Year Ended April 30,
Statements of Changes in Net Assets ------------------------------------
2004 2003
- ------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net assets:
Operations:
Net investment income ......................................................... $ 10,527,637 $ 18,765,709
Net realized gain from investment transactions ................................ 110,131 159,895
Net unrealized appreciation (depreciation) of investments ..................... (435,562) 32,060
-------------- --------------
Net increase in net assets resulting from operations .......................... 10,202,206 18,957,664
Total declared as dividends to shareholders (Note 4) .......................... (10,637,768) (18,925,604)
Capital share transactions (Note 3) ........................................... (143,476,256) 417,096,556
-------------- --------------
Net increase (decrease) in net assets ......................................... (143,911,818) 417,128,616
Net Assets:
Beginning of year ............................................................. 1,487,985,520 1,070,856,904
-------------- --------------
End of year ................................................................... $1,344,073,702 $1,487,985,520
============== ==============
- ------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Treasury Fund Year Ended April 30,
Financial Highlights ----------------------------------------------------------------------
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income ........................ .008 .014 .026 .056 .048
Less Distributions:
Dividends from net investment income ......... (.008) (.014) (.026) (.056) (.048)
------ ------ ------ ------ ------
Net Asset Value, end of year .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return .................................. .80% 1.37% 2.60% 5.78% 4.94%
Ratios/Supplemental Data:
Net Assets, end of year (000) ................ $1,344,074 $1,487,986 $1,070,857 $1,052,009 $678,841
Ratio of expenses to average net assets
(before waiver) ............................ .36% .35% .36% .39% .39%
Ratio of expenses to average net assets
(after waiver) ............................. .23% .22% .23% .25% .25%
Ratio of net investment income to average
net assets (before waiver) ................. .66% 1.19% 2.37% 5.45% 4.69%
Ratio of net investment income to average
net assets (after waiver) .................. .79% 1.32% 2.50% 5.59% 4.83%
See Notes to Financial Statements.
17
- ------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Statement of Assets and Liabilities
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Assets:
Investment in the Master Institutional Tax-Exempt Fund, at value (Note 1a) ........ $11,025,427,485
Prepaid expense ................................................................... 19,689
---------------
Total assets ................................................................... 11,025,447,174
---------------
Liabilities:
Administration fee payable (Note 2) ............................................... 1,660,325
Dividends payable ................................................................. 244,949
Accrued expenses .................................................................. 229,387
---------------
Total liabilities .............................................................. 2,134,661
---------------
Net Assets: (Equivalent to $1.00 per share, offering and redemption price, based on
11,023,041,976 shares of beneficial interest outstanding) ........................ $11,023,312,513
===============
Net Assets Consist of:
Paid-in capital ................................................................... $11,023,134,139
Accumulated net realized gain ..................................................... 177,833
Undistributed net investment income ............................................... 541
---------------
Total ............................................................................. $11,023,312,513
===============
- ------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
Statement of Operations
For the Year Ended April 30, 2004
- ------------------------------------------------------------------------------------------------------
Investment Income:
Interest allocated from Master Institutional Tax-Exempt Fund ...................... $107,909,026
Expenses allocated from Master Institutional Tax-Exempt Fund ...................... (5,362,007)
------------
Total investment income ........................................................ 102,547,019
------------
Expenses:
Administration fee (Note 2) ....................................................... 15,293,396
Dividend and transfer agency fees ................................................. 745,813
Registration fees ................................................................. 741,721
Accounting services ............................................................... 223,896
Legal and audit fees .............................................................. 71,389
Insurance ......................................................................... 57,631
Printing and shareholder reports .................................................. 34,414
Trustees' fees (Note 5) ........................................................... 33,253
Miscellaneous ..................................................................... 46,629
------------
Total expense .................................................................. 17,248,142
------------
Net investment income .......................................................... 85,298,877
Net realized gain on investment transactions allocated from the
Master Institutional Tax-Exempt Fund ............................................. 160,307
------------
Net Increase in Net Assets Resulting From Operations .............................. $ 85,459,184
============
See Notes to Financial Statements.
18
- ----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund Year Ended April 30,
Statements of Changes in Net Assets ------------------------------------
2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
Increase in Net assets:
Operations:
Net investment income ............................................................. $ 85,298,877 $ 78,196,947
Net realized gain from investment transactions .................................... 160,307 15,224
--------------- --------------
Net increase in net assets resulting from operations .............................. 85,459,184 78,212,171
Total declared as dividends to shareholders (Note 4) .............................. (85,277,561) (78,196,216)
Capital share transactions (Note 3) ............................................... 2,837,610,314 3,712,701,241
--------------- --------------
Net increase in net assets ........................................................ 2,837,791,937 3,712,717,196
Net Assets:
Beginning of year ................................................................. 8,185,520,576 4,472,803,380
--------------- --------------
End of year, including undistributed net investment income of $541 at the
end of both periods (Note 1f) .................................................... $11,023,312,513 $8,185,520,576
=============== ==============
- ----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund Year Ended April 30,
Financial Highlights -------------------------------------------------------------------------
2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, beginning of year ........... $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income ....................... .01 .01 .02 .04 .03
Less Distributions:
Dividends from net investment income ........ (.01) (.01) (.02) (.04) (.03)
----- ----- ----- ----- -----
Net Asset Value, end of year ................. $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total Return ................................. .85% 1.23% 2.01% 3.96% 3.41%
Ratios/Supplemental Data:
Net Assets, end of year (000) ............... $11,023,313 $8,185,521 $4,472,803 $3,147,370 $2,055,674
Ratio of expenses to average net assets
(before waiver) ........................... .22% .22% .38% .46% .48%
Ratio of expenses to average net assets
(after waiver) ............................ -- -- .23% .23% .24%
Ratio of net investment income to average
net assets (before waiver) ................ .84% 1.19% 1.77% 3.61% 3.12%
Ratio of net investment income to average
net assets (after waiver) ................. -- -- 1.92% 3.84% 3.36%
See Notes to Financial Statements.
19
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Merrill Lynch Funds For Institutions Series (the "Trust") is organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 as a diversified, open-end management company. The Trust consists of
five series, Merrill Lynch Premier Institutional Fund, Merrill Lynch
Institutional Fund, Merrill Lynch Government Fund, Merrill Treasury Fund, and
Merrill Lynch Institutional Tax Exempt Fund, (collectively, the "Funds"). The
Trust's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America, which may
require management to make certain estimates and assumptions at the date of the
financial statements.
The Premier Institutional, Institutional and Institutional Tax Exempt
Funds (the "Feeder Funds") invest all of their investable assets in interests
in the Master Premier Institutional Fund, Master Institutional Fund, and Master
Institutional Tax Exempt Fund (the "Master Funds"), respectively, each a
registered investment company having the same investment objective as the
Feeder Funds.
The value of the Feeder Funds' investments in the Master Funds reflect the
Feeder Funds proportionate interest in the Master Funds (approximately 100% for
each of the Feeder Funds at April 30, 2004). The results of operations and
performance of the Feeder Funds are directly affected by the performance of the
Master Funds.
The financial statements of the Master Funds, including their schedules of
investments, are included elsewhere in this report and should be read in
conjunction with the Feeder Funds' financial statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in conformity with accounting principles generally
accepted in the United States of America.
(a) Valuation of securities by each of the Master Funds is discussed in
Note 1(a) of the Master Funds Notes to Financial Statements which are included
elsewhere in this report. The value of the Government and Treasury Funds
portfolio securities is determined on the basis of fair value as determined in
good faith by the Board of Trustees (the "Trustees") of the Trust. In
determining fair value, securities for which market quotations are readily
available are valued at market value. Other securities, if any, are valued at
their fair value in the best judgement of Fund Asset Management L.P., ("FAM")
under procedures established by, and under the supervision of, the Trustees.
Securities with remaining maturities of 60 days or less are valued by use of
the amortized cost method.
For the purpose of valuation, the maturity of a variable rate demand
instrument is deemed to be the next coupon date on which the interest rate is
to be adjusted. In the case of a floating rate instrument, the remaining
maturity is deemed to be the demand notice payment period.
The general partner of FAM is Princeton Services, Inc. ("PSI"), an
indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML&Co."),
which is the limited partner.
(b) It is the Trust's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investments companies and to
distribute all of its taxable and tax exempt income to its shareholders.
Therefore, no federal income tax provision is required.
20
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements -- Continued
- --------------------------------------------------------------------------------
(c) Security transactions are accounted for on the date the securities are
purchased or sold (the trade date). Realized gains and losses on investments
are computed on the basis of identified cost of the security sold.
The Feeder Funds' net investment income includes the Feeder Funds'
pro-rata share of the net investment income of the respective Master Funds.
The Government Fund and Treasury Fund record interest income (after
adjustment for amortization of premium or accretion of discount) as earned.
(d) Prepaid registration fees are charged to income as the related shares
are sold.
(e) Repurchase agreements -- The Government Fund invests in U.S.
Government & Agency securities pursuant to repurchase agreements with member
banks of the Federal Reserve System or primary dealers in U.S. Government
securities. Under such agreements, the bank or primary dealer agrees to
repurchase the security at a mutually agreed upon time and price. The
Government Fund takes possession of the underlying securities, marks to market
such securities daily and, if necessary, receives additional securities to
ensure that the contract is adequately collateralized.
(f) Accounting principles generally accepted in the United States of
America require that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting. Accordingly, during
the current year, $20,775 has been reclassified between undistributed net
investment income and accumulated net realized gain and $92,163 has been
reclassified between accumulated net realized gain and paid-in capital as a
result of permanent differences attributable to amortization methods on fixed
income securities and expired capital loss carryforwards. These
reclassifications have no effect on net assets or net asset values per share.
2. Investment Advisory Fees and Other Transactions with Affiliates
FAM, a subsidiary of Merrill Lynch & Co., Inc., provides investment advisory
and corporate administrative services to the Government Fund and Treasury Fund
for a fee, subject to certain limitations, at the annual rates listed below.
Percentage of Average Daily Net Assets
---------------------------------------
Government Fund and
Treasury Fund ......... .35% up to and including $500,000,000
plus .335% over $500,000,000 up to and
including $750,000,000
plus .32% over $750,000,000 up to and
including $1,000,000,000
plus .30% over $1,000,000,000
FAM has agreed to waive a portion of its advisory fees for the Government
and Treasury Funds. The effective fee payable to FAM will be at the annual rate
of 0.20% for each of the Government and Treasury Funds' average daily net
assets. FAM may discontinue waiver of the fee in whole or in part at any time
without notice.
For the year ended April 30, 2004, FAM waived a portion of its fees
amounting to $6,205,326 for the Government Fund and $1,734,934 for the Treasury
Fund.
FAM provides certain administrative services to the Premier Institutional
Fund, Institutional Fund and Institutional Tax-Exempt Fund, for a fee at an
annual rate of 0.10%, 0.15% and 0.15%, respectively, of average daily net
assets.
All officers and certain trustees of the Trust are affiliated with Merrill
Lynch & Co., Inc.
21
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements -- Continued
- --------------------------------------------------------------------------------
3. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
shares of beneficial interest in the Premier Institutional Fund, Institutional
Fund, Government Fund and Treasury Fund ($.01 par value) and Institutional
Tax-Exempt Fund ($.10 par value) of a single class.
Transactions in shares at a constant net asset value of $1.00 per share
were as follows:
Year Year
Ended Ended
April 30, April 30,
Premier Institutional Fund 2004 2003
- -------------------------- --------------- ---------------
Shares sold ......................... 554,226,255,613 524,536,432,823
Shares issued to shareholders in
reinvestment of dividends ......... 312,747,388 460,366,923
--------------- ---------------
Total ............................. 554,539,003,001 524,996,799,746
Shares redeemed ..................... 553,378,850,879 526,789,939,862
--------------- ---------------
Net increase (decrease) ........... 1,160,152,122 (1,793,140,116)
=============== ===============
Year Year
Ended Ended
April 30, April 30,
Institutional Fund 2004 2003
- ------------------ -------------- --------------
Shares sold ......................... 75,814,508,839 91,023,986,780
Shares issued to shareholders in
reinvestment of dividends ......... 99,162,602 155,576,796
-------------- --------------
Total ............................. 75,913,671,441 91,179,563,576
Shares redeemed ..................... 76,965,817,431 92,355,280,117
-------------- --------------
Net decrease ...................... (1,052,145,990) (1,175,716,541)
============== ==============
Year Year
Ended Ended
April 30, April 30,
Government Fund 2004 2003
- --------------- -------------- --------------
Shares sold ......................... 37,443,523,337 51,608,815,481
Shares issued to shareholders in
reinvestment of dividends ......... 48,721,944 74,368,743
-------------- --------------
Total ............................. 37,492,245,281 51,683,184,224
Shares redeemed ..................... 37,264,016,396 51,130,497,417
-------------- --------------
Net increase ...................... 228,228,885 552,686,807
============== ==============
Year Year
Ended Ended
April 30, April 30,
Treasury Fund 2004 2003
- ------------- ------------- -------------
Shares sold ......................... 4,139,225,382 5,628,122,617
Shares issued to shareholders in
reinvestment of dividends ......... 10,147,943 17,509,583
------------- -------------
Total ............................. 4,149,373,325 5,645,632,200
Shares redeemed ..................... 4,292,849,581 5,228,535,644
------------- -------------
Net increase (decrease) ........... (143,476,256) 417,096,556
============= =============
Year Year
Ended Ended
Institutional April 30, April 30,
Tax-Exempt Fund 2004 2003
- --------------- -------------- --------------
Shares sold ......................... 37,984,362,489 26,166,998,472
Shares issued to shareholders in
reinvestment of dividends ......... 78,878,999 72,683,660
-------------- --------------
Total ............................. 38,063,241,488 26,239,682,132
Shares redeemed ..................... 35,225,631,174 22,526,980,891
-------------- --------------
Net increase ...................... 2,837,610,314 3,712,701,241
============== ==============
4. Distributions
The Funds declare dividends daily, pay dividends monthly and automatically
reinvest such dividends in additional Fund shares at net asset value, unless
shareholders request payment in cash. Dividends for the Premier Institutional,
Institutional, Government and Treasury Funds are declared from the total net
investment income plus or minus realized gains or losses, if any, on
investments.
Dividends for the Institutional Tax-Exempt Fund are declared from net
investment income excluding discounts earned other than original issue
discounts. Net realized capital gains, if any, are normally distributed
annually, after deducting prior years' loss carryovers. The Fund may distribute
capital gains more frequently than annually in order to maintain the Fund's net
asset value at $1.00 per share.
22
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Notes to Financial Statements -- Continued
- --------------------------------------------------------------------------------
5. Trustees' Fees
Each Trustee who is not affiliated with the Trust or its adviser is paid an
annual retainer fee of $40,000 plus an additional fee of $2,500 for each board
meeting attended. Trustees' fees are allocated among the five series of the
Trust based on the net assets under management.
23
- --------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Merrill Lynch Funds for Institutions Series:
We have audited the accompanying statements of assets and liabilities of
Merrill Lynch Funds for Institutions Series (the "Trust"), consisting of
Merrill Lynch Premier Institutional Fund, Merrill Lynch Institutional Fund,
Merrill Lynch Government Fund, Merrill Lynch Treasury Fund, and Merrill Lynch
Institutional Tax-Exempt Fund (the "Funds"), each a separate series of the
Trust, including the schedules of investments of Merrill Lynch Government Fund
and Merrill Lynch Treasury Fund, as of April 30, 2004, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of April 30, 2004, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds of Merrill Lynch Funds for Institutions Series as of
April 30, 2004, and the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
June 21, 2004
24
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Important Tax Information (Unaudited)
- --------------------------------------------------------------------------------
Merrill Lynch Premier Institutional Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2004, 13.7% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
Additionally, the Fund paid long-term capital gain distributions of
$0.000001743 per share to shareholders of record on April 30, 2004.
Merrill Lynch Institutional Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2004, 12.9% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
Additionally, the Fund paid long-term capital gain distributions of
$0.000002725 per share to shareholders of record on April 30, 2004.
Merrill Lynch Government Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2004, 34.2% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
Additionally, the Fund paid long-term capital gain distributions of
$0.000000422 per share to shareholders of record on April 30, 2004.
Merrill Lynch Treasury Fund
Of the Fund's ordinary income distributions paid during the fiscal year ended
April 30, 2004, 100.0% was attributable to Federal obligations. In calculating
the foregoing percentage, Fund expenses have been allocated on a pro rata
basis. Additionally, at least 50% of the assets of the Fund was invested in
Federal obligations at the end of each fiscal quarter.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
25
- --------------------------------------------------------------------------------
Merrill Lynch Funds For Institutions Series
Important Tax Information (Unaudited) -- Continued
- --------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund
All of the net investment income distributions paid by the Fund during the
fiscal year ended April 30, 2004 qualify as tax-exempt interest dividends for
Federal income tax purposes.
For Federal income tax purposes, interest income derived from certain
tax-exempt bonds (know as Private Activity Bonds) is treated as a tax
preference item in computing the alternative minimum tax. In fiscal year 2004,
the Fund attributed 17.30% of its earnings to Private Activity Bonds.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax advisor to determine if any portion of the
dividends you received is exempt from state income taxes.
26
- ------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments
April 30, 2004
- ------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ------------------------------------------------------------------------------------------------------------------
U.S. Government $ 150,000,000 U.S. Treasury Notes ................... 1.63% 10/31/05 $ 149,250,000
& Agency 75,000,000 U.S. Treasury Notes ................... 1.50 03/31/06 73,945,312
Issues -- 8.2% 100,000,000 Fannie Mae ............................ 5.63 05/14/04 100,104,510
300,000,000 Fannie Mae ............................ 3.88 03/15/05 306,093,750
100,000,000 Fannie Mae ............................ 7.00 07/15/05 106,093,750
150,000,000 Fannie Mae ............................ 2.11 08/26/05 150,187,500
200,000,000 Fannie Mae ............................ 1.88 09/15/05 199,763,976
100,000,000 Fannie Mae ............................ 2.34 09/16/05 100,281,250
174,000,000 Fannie Mae ............................ 2.10 10/21/05 174,000,000
152,800,000 Fannie Mae ............................ 2.50 11/20/05 152,418,000
150,000,000 Fannie Mae ............................ 2.60 11/28/05 149,578,125
69,400,000 Fannie Mae ............................ 2.25 02/28/06 69,204,813
100,000,000 Federal Home Loan Banks ............... 1.50 05/13/05 99,812,500
175,000,000 Federal Home Loan Banks ............... 1.75 08/15/05 174,671,875
100,000,000 Federal Home Loan Banks ............... 3.00 08/15/05 101,375,000
321,500,000 Federal Home Loan Banks ............... 1.50 08/26/05 319,792,031
220,000,000 Freddie Mac ........................... 1.50 05/13/05 219,578,898
100,000,000 Freddie Mac ........................... 2.15 10/28/05 100,089,000
125,000,000 Freddie Mac ........................... 2.29 10/28/05 125,321,375
177,700,000 Freddie Mac ........................... 2.41 11/04/05 178,118,146
170,000,000 Freddie Mac ........................... 2.30 11/17/05 170,425,000
200,000,000 Freddie Mac ........................... 2.41 11/17/05 200,522,620
87,360,000 Freddie Mac ........................... 2.20 12/01/05 87,430,237
140,000,000 Freddie Mac ........................... 2.35 12/09/05 140,389,046
125,000,000 Freddie Mac ........................... 2.50 12/15/05 124,882,375
- ------------------------------------------------------------------------------------------------------------------
Total U.S. Government & Agency
Issues (Cost $3,773,579,294) .......... 3,773,329,089
- ------------------------------------------------------------------------------------------------------------------
U.S. Government 800,000,000 Fannie Mae ............................ 0.97 05/27/04 799,974,245
Agency Issues -- 200,000,000 Fannie Mae ............................ 1.00 10/28/04 199,970,413
Variable 650,000,000 Fannie Mae ............................ 1.05 10/29/04 649,940,915
Rate -- 34.0% 650,000,000 Fannie Mae ............................ 1.02 01/28/05 649,878,587
400,000,000 Fannie Mae ............................ 1.04 02/18/05 399,950,989
800,000,000 Fannie Mae ............................ 1.04 03/16/05 799,964,916
550,000,000 Fannie Mae ............................ 1.04 03/23/05 549,901,238
1,500,000,000 Fannie Mae ............................ 1.00 08/17/05 1,499,416,316
See Notes to Financial Statements.
27
- -------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------------------------------------
U.S. Government $ 1,500,000,000 Fannie Mae .......................... 0.98% 08/29/05 $1,499,047,636
Agency Issues -- 800,000,000 Fannie Mae .......................... 0.99 09/06/05 799,356,957
Variable Rate 1,900,000,000 Fannie Mae .......................... 0.98 09/15/05 1,898,686,797
(continued) 650,000,000 Fannie Mae .......................... 0.98 10/03/05 649,684,815
100,000,000 Federal Farm Credit Banks ........... 1.00 10/28/04 99,990,180
158,500,000 Federal Farm Credit Banks ........... 1.02 11/04/04 158,500,000
300,000,000 Federal Farm Credit Banks ........... 1.00 11/22/04 299,966,347
200,000,000 Federal Farm Credit Banks ........... 1.00 12/02/04 199,988,218
98,000,000 Federal Farm Credit Banks ........... 1.00 05/02/05 97,980,373
100,000,000 Federal Farm Credit Banks ........... 1.01 05/19/05 99,989,521
196,000,000 Federal Farm Credit Banks ........... 1.02 06/13/05 195,978,121
75,000,000 Federal Farm Credit Banks ........... 1.03 09/19/05 74,999,378
163,900,000 Federal Farm Credit Banks ........... 1.02 02/21/06 163,840,691
190,000,000 Federal Farm Credit Banks ........... 1.02 05/19/06 189,922,197
80,000,000 Federal Farm Credit Banks ........... 1.03 02/12/07 79,977,730
116,000,000 Federal Farm Credit Banks ........... 1.05 02/20/08 115,955,849
100,000,000 Federal Farm Credit Banks ........... 1.06 03/20/08 100,000,000
24,000,000 Federal Farm Credit Banks ........... 1.05 06/20/08 23,989,943
100,000,000 Federal Farm Credit Banks ........... 1.04 07/17/08 99,957,909
100,000,000 Federal Farm Credit Banks ........... 1.05 01/14/09 99,908,734
500,000,000 Federal Home Loan Banks ............. 1.00 07/14/04 499,965,000
301,000,000 Federal Home Loan Banks ............. 1.01 08/19/04 300,981,841
425,000,000 Federal Home Loan Banks ............. 1.04 03/30/05 424,911,983
200,000,000 Federal Home Loan Banks ............. 1.00 08/02/05 199,962,268
1,000,000,000 Federal Home Loan Banks ............. 0.99 09/12/05 999,242,593
300,000,000 Federal Home Loan Banks ............. 0.99 10/03/05 299,801,434
150,000,000 Freddie Mac ......................... 1.10 10/07/05 149,974,200
100,000,000 Freddie Mac ......................... 1.05 08/28/06 99,953,522
80,000,000 Freddie Mac ......................... 1.03 02/12/09 79,923,459
- -------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $15,551,234,717) .............. 15,551,435,315
- -------------------------------------------------------------------------------------------------------------------
Certificates of 350,000,000 Citibank, NA ........................ 1.04 05/24/04 350,000,000
Deposit -- 3.0% 300,000,000 Washington Mutual Bank .............. 1.06 06/07/04 300,000,000
100,000,000 Washington Mutual Bank, FA .......... 1.11 07/15/04 100,002,000
See Notes to Financial Statements.
28
- -------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------------------------------------
Certificates of $ 600,000,000 Wells Fargo Bank, NA ..................... 1.03% 05/18/04 $ 600,000,000
Deposit
(continued)
- -------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost $1,350,000,000) .................... 1,350,002,000
- -------------------------------------------------------------------------------------------------------------------
Euro 65,000,000 BNP Paribas, London ...................... 1.03 06/15/04 64,998,290
Certificates of 190,000,000 Credit Agricole Indosuez, NY ............. 1.13 12/30/04 189,578,409
Deposit -- 3.5% 300,000,000 HBOS Treasury Services PLC ............... 1.06 06/01/04 300,000,000
300,000,000 HBOS Treasury Services PLC ............... 1.04 06/14/04 300,000,000
50,000,000 KBC Bank, NV ............................. 1.05 05/17/04 50,000,222
300,000,000 Royal Bank of Scotland ................... 1.07 07/19/04 299,973,390
400,000,000 Societe Generale North America Inc. ...... 1.03 06/15/04 400,000,000
- -------------------------------------------------------------------------------------------------------------------
Total Euro Certificates of Deposit
(Cost $1,604,985,619) .................... 1,604,550,311
- -------------------------------------------------------------------------------------------------------------------
Yankee 150,000,000 Royal Bank of Scotland ................... 1.06 07/30/04 149,971,275
Certificates of 50,000,000 SwedBank, NY ............................. 1.39 11/15/04 50,004,725
Deposit -- 0.9% 200,000,000 Toronto-Dominion Bank, NY ................ 1.04 06/21/04 200,000,000
- -------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of Deposit
(Cost $399,984,712) ...................... 399,976,000
- -------------------------------------------------------------------------------------------------------------------
Yankee 200,000,000 BNP Paribas, NY .......................... 1.04 06/10/04 199,995,628
Certificates of 335,000,000 BNP Paribas, NY .......................... 1.05 04/26/05 334,933,455
Deposit -- 290,000,000 Canadian Imperial Bank of
Variable Commerce, NY ........................... 1.05 05/28/04 290,000,000
Rate -- 5.2% 210,000,000 Canadian Imperial Bank of
Commerce ............................... 1.15 05/13/05 210,000,000
210,000,000 Credit Agricole Indosuez, NY ............. 1.05 04/19/05 209,969,658
400,000,000 Rabobank Nederland N.V., NY .............. 1.04 05/03/05 399,910,000
500,000,000 Svenska Handelsbanken AB, NY ............. 1.04 04/25/05 499,901,006
100,000,000 SwedBank ................................. 1.05 01/21/05 99,989,031
124,000,000 Westpac Banking Corp. NY ................. 1.10 03/11/05 124,000,000
- -------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of
Deposit -- Variable Rate
(Cost $2,368,698,778) .................... 2,368,698,778
- -------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
29
- -----------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------------------------------
Bank Notes -- $ 50,000,000 Bank One, NA, Chicago ...................... 1.03% 05/20/04 $ 49,999,230
Variable
Rate -- 0.1%
- -----------------------------------------------------------------------------------------------------------------
Total Bank Notes -- Variable Rate
(Cost $49,999,230) ......................... 49,999,230
- -----------------------------------------------------------------------------------------------------------------
Corporate 29,000,000 BMW U.S. Capital Corp. ..................... 4.07 06/07/04 29,083,024
Notes -- 0.2% 50,000,000 Links Finance LLC .......................... 1.50 11/15/04 50,000,000
- -----------------------------------------------------------------------------------------------------------------
Total Corporate Notes
(Cost $79,083,024).......................... 79,083,024
- -----------------------------------------------------------------------------------------------------------------
Corporate 84,000,000 Associates Corp. of North America .......... 1.21 06/25/04 84,000,000
Notes -- Variable 200,000,000 Beta Finance Inc. .......................... 1.04 02/15/05 199,969,200
Rate -- 8.9% 55,000,000 CC (USA) Inc., (Centauri) .................. 1.07 10/12/04 54,998,020
55,000,000 CC (USA) Inc., (Centauri) .................. 1.05 03/07/05 54,988,840
77,000,000 CC (USA) Inc., (Centauri) .................. 1.04 03/10/05 76,982,667
225,000,000 Dorada Finance Inc. ........................ 1.06 04/26/05 224,946,450
200,000,000 General Electric Capital Corp. ............. 1.18 05/17/05 200,189,400
213,000,000 Household Finance Corp. .................... 1.12 08/18/04 213,035,550
250,000,000 K2 (USA) LLC ............................... 1.06 06/15/04 250,000,000
100,000,000 K2 (USA) LLC ............................... 1.06 07/06/04 99,999,500
150,000,000 Lehman Brothers Holdings Inc. .............. 1.10 05/20/05 149,992,785
200,000,000 Links Finance LLC .......................... 1.06 05/17/04 199,999,563
100,000,000 Links Finance LLC .......................... 1.04 04/15/05 99,992,200
50,000,000 Links Finance LLC .......................... 1.07 05/13/05 49,989,305
108,000,000 Metlife Global Funding I ................... 1.11 05/13/05 107,998,272
234,000,000 Morgan Stanley ............................. 1.09 05/04/05 233,970,516
50,000,000 Morgan Stanley ............................. 1.22 05/13/05 50,031,405
197,200,000 Morgan Stanley ............................. 1.11 05/27/05 197,191,520
140,000,000 Nationwide Building Society ................ 1.10 04/28/05 140,030,100
215,000,000 Northern Rock PLC .......................... 1.13 04/08/05 215,000,236
60,000,000 Parkland Finance Corporation ............... 1.08 05/17/04 60,000,000
140,000,000 Racers Series 2004-1-MM Trust
Certificate .............................. 1.20 05/15/05 140,000,000
50,000,000 Sigma Finance Inc. ......................... 1.06 06/18/04 49,999,016
See Notes to Financial Statements.
30
- ------------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ------------------------------------------------------------------------------------------------------------------------
Corporate $ 50,000,000 Sigma Finance Inc. ........................... 1.06% 06/28/04 $ 49,998,818
Notes -- Variable 100,000,000 Sigma Finance Inc. ........................... 1.07 09/22/04 99,985,000
Rate 157,000,000 Sigma Finance Inc. ........................... 1.06 01/20/05 157,000,000
(continued) 75,000,000 Sigma Finance Inc. ........................... 1.05 02/15/05 74,985,000
65,000,000 Sigma Finance Inc. ........................... 1.07 03/10/05 64,990,250
150,000,000 SLM Corp ..................................... 1.09 05/01/05 149,993,853
35,000,000 Tango Finance Corporation .................... 1.05 03/01/05 34,993,280
54,000,000 Tango Finance Corporation .................... 1.06 03/08/05 53,989,092
106,500,000 Tango Finance Corporation .................... 1.06 03/15/05 106,477,220
50,000,000 White Pine Corporation ....................... 1.08 03/29/05 49,995,150
75,000,000 White Pine Corporation ....................... 1.05 03/29/05 74,982,225
- ------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes -- Variable
Rate (Cost $4,070,518,263) ................... 4,070,694,433
- ------------------------------------------------------------------------------------------------------------------------
Extendable 250,000,000 Citibank Credit Card Issuance Trust .......... 1.04 05/05/04 249,971,111
Commercial 375,000,000 Citibank Credit Card Issuance Trust .......... 1.05 06/22/04 374,431,250
Notes -- 5.2% 96,500,000 DaimlerChrysler Revolving Auto
Conduit .................................... 1.04 05/05/04 96,488,849
80,000,000 DaimlerChrysler Revolving Auto
Conduit .................................... 1.04 05/25/04 79,944,533
103,000,000 Discover Card Master Trust 1 2000-A 1.04 05/12/04 102,967,269
123,555,000 Discover Card Master Trust 1 2000-A 1.05 05/13/04 123,511,756
100,000,000 Discover Card Master Trust 1 2000-A 1.05 06/22/04 99,848,333
127,000,000 MBNA Master Credit Card Trust II ............. 1.05 05/05/04 126,985,183
178,000,000 MBNA Master Credit Card Trust II ............. 1.07 06/23/04 177,719,600
194,252,000 MBNA Master Credit Card Trust II ............. 1.07 07/07/04 193,726,601
45,000,000 Park Granada LLC ............................. 1.07 05/06/04 44,993,313
120,000,000 Park Granada LLC ............................. 1.06 05/11/04 119,964,667
100,000,000 Park Granada LLC ............................. 1.06 06/01/04 99,908,722
118,414,000 Park Granada LLC ............................. 1.06 06/07/04 118,284,994
See Notes to Financial Statements.
31
- -------------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------------------------------------------
Extendable $ 41,000,000 Park Granada LLC ................................. 1.07% 06/15/04 $ 40,945,163
Commercial 95,246,000 Park Granada LLC ................................. 1.08 07/12/04 94,971,234
Notes 100,000,000 Park Granada LLC ................................. 1.09 07/15/04 99,724,472
(continued) 155,000,000 Park Granada LLC ................................. 1.12 08/09/04 154,435,800
- -------------------------------------------------------------------------------------------------------------------------
Total Extendable Commercial Notes
(Cost $2,399,160,875)............................. 2,398,822,850
- -------------------------------------------------------------------------------------------------------------------------
Master Notes -- 100,000,000 Allstate Life Insurance Co. (a) .................. 1.18 06/15/04 100,000,000
Variable 360,000,000 J.P. Morgan Chase & Co. (a) ...................... 1.16 11/23/04 360,000,000
Rate -- 4.8% 50,000,000 GE Life and Annuity Assurance Co. (a) ............ 1.14 10/01/04 50,000,000
50,000,000 GE Life and Annuity Assurance Co. (a) ............ 1.15 11/01/04 50,000,000
150,000,000 Goldman Sachs Group, Inc. (a) .................... 1.14 09/07/04 150,000,000
150,000,000 Goldman Sachs Group, Inc. (a) .................... 1.21 10/01/04 150,000,000
100,000,000 Hartford Life Insurance Co. (a) .................. 1.18 05/03/04 100,000,000
50,000,000 Hartford Life Insurance Co. (a) .................. 1.18 12/01/04 50,000,000
100,000,000 Hartford Life Insurance Co. (a) .................. 1.19 05/02/05 100,000,000
60,000,000 ING USA Annuity and Life
Insurance Co. (a) .............................. 1.18 06/24/04 60,000,000
100,000,000 ING USA Annuity and Life
Insurance Co. (a) .............................. 1.19 01/20/05 100,000,000
40,000,000 Jackson National Life Insurance Co. (a) .......... 1.17 05/03/04 40,000,000
210,000,000 Metropolitan Life Insurance
Company (a) .................................... 1.16 09/01/04 210,000,000
60,000,000 Monumental Life Insurance Co. (a) ................ 1.24 08/13/04 60,000,000
90,000,000 Monumental Life Insurance Co. (a) ................ 1.25 05/23/05 90,000,000
100,000,000 New York Life Insurance Company (a) .............. 1.16 05/28/04 100,000,000
136,000,000 New York Life Insurance Company (a) .............. 1.20 10/20/04 136,000,000
150,000,000 New York Life Insurance Company (a) .............. 1.20 12/08/04 150,000,000
35,000,000 Travelers Insurance Company (The) (a) ............ 1.15 03/01/05 35,000,000
100,000,000 United of Omaha Life Insurance
Company (a) .................................... 1.20 04/27/05 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
Total Master Notes -- Variable Rate
(Cost $2,191,000,000) ............................ 2,191,000,000
- -------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
32
- -------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------------------------------------
Commercial $ 300,000,000 Abbey National N.A. Corporation ........... 1.03% 06/30/04 $299,469,990
Paper -- 17.5% 196,795,000 Amstel Funding Corporation ................ 1.04 06/21/04 196,505,055
110,000,000 Amsterdam Funding Corp. ................... 1.04 05/17/04 109,949,156
75,000,000 Amsterdam Funding Corp. ................... 1.04 05/24/04 74,950,167
53,849,000 Atlantis One Funding Corp. ................ 1.04 05/27/04 53,808,553
47,741,000 Atlantis One Funding Corp. ................ 1.04 06/03/04 47,695,487
70,000,000 Atlantis One Funding Corp. ................ 1.04 06/23/04 69,892,822
72,930,000 Barton Capital Corp. ...................... 1.04 06/16/04 72,833,084
76,000,000 Bryant Park Funding, LLC .................. 1.05 05/04/04 75,993,350
74,697,000 Bryant Park Funding, LLC .................. 1.05 05/25/04 74,644,712
100,000,000 CAFCO, LLC ................................ 1.04 05/04/04 99,991,333
50,000,000 CAFCO, LLC ................................ 1.04 05/07/04 49,991,333
47,600,000 CAFCO, LLC ................................ 1.04 06/07/04 47,549,121
100,000,000 CAFCO, LLC ................................ 1.04 06/10/04 99,884,445
40,000,000 Cancara Asset Securitization .............. 1.05 05/10/04 39,989,500
62,017,000 Cancara Asset Securitization .............. 1.04 05/24/04 61,975,793
97,890,000 Cancara Asset Securitization .............. 1.04 06/21/04 97,745,775
200,000,000 Clipper Receivables Company, LLC .......... 1.05 06/14/04 199,743,333
100,000,000 Clipper Receivables Company, LLC .......... 1.05 06/30/04 99,823,330
72,470,000 Compass Securitization LLC ................ 1.03 05/18/04 72,434,751
35,000,000 Countrywide Financial Corp. ............... 1.05 06/03/04 34,966,313
20,000,000 Countrywide Financial Corp. ............... 1.07 06/03/04 19,980,383
40,000,000 Countrywide Financial Corp. ............... 1.07 06/07/04 39,956,012
50,000,000 CRC Funding, LLC .......................... 1.05 06/21/04 49,925,979
81,098,000 Delaware Funding Corp. .................... 1.03 05/24/04 81,044,633
22,500,000 Dorada Finance Inc. ....................... 1.06 07/06/04 22,455,945
100,000,000 Edison Asset Securitization, LLC .......... 1.04 05/03/04 99,994,222
350,000,000 Edison Asset Securitization, LLC .......... 1.04 06/09/04 349,605,667
60,000,000 Edison Asset Securitization, LLC .......... 1.04 06/22/04 59,909,867
186,926,000 Edison Asset Securitization, LLC .......... 1.04 07/06/04 186,559,999
50,000,000 Eureka Securitization Inc. ................ 1.05 05/07/04 49,991,250
88,000,000 Fairway Finance Corp. LLC ................. 1.04 05/20/04 87,951,930
39,755,000 Fairway Finance Corp. LLC ................. 1.04 06/01/04 39,719,397
46,987,000 Fairway Finance Corp. LLC ................. 1.04 06/03/04 46,942,206
74,520,000 Fairway Finance Corp. LLC ................. 1.07 07/13/04 74,357,204
See Notes to Financial Statements.
33
- --------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- --------------------------------------------------------------------------------------------------------------
Commercial $ 92,255,000 Falcon Asset Securitization ............. 1.04% 05/12/04 $ 92,225,683
Paper 100,000,000 FCAR Owner Trust ........................ 1.05 06/15/04 99,868,750
(continued) 164,000,000 FCAR Owner Trust ........................ 1.07 06/18/04 163,766,027
81,000,000 FCAR Owner Trust ........................ 1.07 06/25/04 80,867,588
50,000,000 Galleon Capital, LLC .................... 1.04 05/07/04 49,991,333
50,000,000 Galleon Capital, LLC .................... 1.03 05/17/04 49,977,111
29,780,000 Galleon Capital, LLC .................... 1.04 05/21/04 29,762,794
50,000,000 Galleon Capital, LLC .................... 1.04 05/25/04 49,965,333
50,000,000 General Electric Capital Corp. .......... 1.05 05/13/04 49,982,500
150,000,000 General Electric Capital Corp. .......... 1.05 05/14/04 149,943,125
33,750,000 Grampain Funding Limited ................ 1.05 05/10/04 33,741,141
115,000,000 Grampain Funding Limited ................ 1.04 05/20/04 114,936,878
281,250,000 Grampain Funding Limited ................ 1.04 06/09/04 280,933,125
75,000,000 Greyhawk Funding LLC .................... 1.05 05/03/04 74,995,625
82,000,000 Greyhawk Funding LLC .................... 1.03 05/11/04 81,976,539
100,000,000 Greyhawk Funding LLC .................... 1.04 05/20/04 99,945,111
100,000,000 Greyhawk Funding LLC .................... 1.06 06/16/04 99,864,556
60,000,000 High Peak Funding LLC ................... 1.06 05/04/04 59,994,700
45,000,000 High Peak Funding LLC ................... 1.06 05/12/04 44,985,425
90,000,000 High Peak Funding LLC ................... 1.06 06/09/04 89,896,650
60,975,000 ING (US) Funding LLC .................... 1.04 05/05/04 60,967,954
350,000,000 J.P. Morgan Chase & Co. ................. 1.04 05/05/04 49,959,556
200,000,000 Jupiter Securitization Corp. ............ 1.04 05/18/04 199,902,250
25,093,000 Kittyhawk Funding Corp. ................. 1.03 05/19/04 25,080,077
25,805,000 Kittyhawk Funding Corp. ................. 1.03 05/21/04 25,790,234
46,700,000 Lake Constance Funding Limited .......... 1.05 05/13/04 46,683,655
40,000,000 Lake Constance Funding Limited .......... 1.04 06/10/04 39,953,778
39,400,000 Lake Constance Funding Limited .......... 1.06 07/23/04 39,300,925
50,000,000 Long Lane Master Trust IV ............... 1.05 05/12/04 49,983,958
76,164,000 Mont Blanc Capital Corp. ................ 1.03 05/13/04 76,137,850
86,471,000 Mont Blanc Capital Corp. ................ 1.05 05/13/04 86,440,735
50,000,000 NBNZ International Limited .............. 1.06 05/18/04 49,974,972
60,000,000 New Center Asset Trust .................. 1.03 05/17/04 59,972,533
100,000,000 Norddeutsche Landesbank
Luxemburg SA .......................... 1.04 06/08/04 99,890,222
See Notes to Financial Statements.
34
- -----------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------
Commercial $ 106,392,000 Old Line Funding LLC ......................... 1.04% 06/03/04 $ 106,290,573
Paper 78,000,000 Park Avenue Receivables Corp. ................ 1.03 05/21/04 77,955,367
(continued) 101,098,000 Park Avenue Receivables Corp. ................ 1.03 05/24/04 101,031,472
67,000,000 PB Finance (Delaware) Inc. ................... 1.06 06/16/04 66,909,252
33,000,000 PB Finance (Delaware) Inc. ................... 1.08 07/07/04 32,934,323
78,450,000 Polonius, Inc. ............................... 1.04 05/17/04 78,413,739
70,000,000 Preferred Receivables Funding Corp. .......... 1.04 05/13/04 69,975,733
25,000,000 Premier Asset Collateralized Entity
LLC ........................................ 1.04 06/10/04 24,971,111
14,700,000 Premier Asset Collateralized Entity
LLC ........................................ 1.07 07/02/04 14,673,098
14,400,000 Premier Asset Collateralized Entity
LLC ........................................ 1.07 07/07/04 14,371,341
92,746,000 Scaldis Capital LLC .......................... 1.05 05/10/04 92,721,654
86,764,000 Scaldis Capital LLC .......................... 1.04 05/17/04 86,723,896
70,490,000 Scaldis Capital LLC .......................... 1.04 05/20/04 70,451,309
400,000,000 Sheffield Receivables Corp. .................. 1.03 05/20/04 399,782,556
105,000,000 Spintab AB ................................... 1.04 05/05/04 104,987,867
95,000,000 Spintab AB ................................... 1.04 06/28/04 94,840,822
111,484,000 Thunder Bay Funding, LLC ..................... 1.04 05/17/04 111,432,470
100,000,000 Tulip Funding Corp. .......................... 1.04 05/13/04 99,965,333
45,649,000 White Pine Corporation ....................... 1.05 07/26/04 45,529,623
100,000,000 Windmill Funding Corp. ....................... 1.03 05/20/04 99,945,638
- -----------------------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $7,989,832,484) ........................ 7,989,797,967
- -----------------------------------------------------------------------------------------------------------------------
Commercial 227,000,000 Morgan Stanley ............................... 1.14 10/28/04 227,000,000
Paper -- Variable 35,000,000 White Pine Corporation ....................... 1.05 11/22/04 34,997,040
Rate -- 0.6%
- -----------------------------------------------------------------------------------------------------------------------
Total Commercial Paper -- Variable
Rate (Cost $261,997,040) ..................... 261,997,040
- -----------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
35
- --------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- --------------------------------------------------------------------------------------------------------------
Collateralized $ 235,000,000 Blue Heron IX, Class A .............. 1.13% 02/23/05 $ 235,000,000
Debt 95,000,000 Putman Structured Product 2002-1
Obligation -- Class A-1 ......................... 1.19 04/15/05 95,000,000
Variable
Rate -- 0.7%
- --------------------------------------------------------------------------------------------------------------
Total Collateralized Debt
Obligation -- Variable Rate
(Cost $330,000,000) ................. 330,000,000
- --------------------------------------------------------------------------------------------------------------
Collateralized 100,000,000 Barclays Capital Inc.,
Advancements purchased on 04/30/04 ............. 1.11 05/03/04 100,000,000
- -- 4.6% 275,000,000 Citigroup Global Markets Inc.,
purchased on 04/30/04 ............. 1.16 05/03/04 275,000,000
500,000,000 Deutsche Bank Securities Inc.,
purchased on 04/30/04 ............. 1.19 05/03/04 500,000,000
50,000,000 Goldman Sachs & Company,
purchased on 04/30/04 ............. 1.16 05/03/04 50,000,000
100,000,000 Goldman Sachs & Company,
purchased on 04/30/04 ............. 1.09 05/03/04 100,000,000
600,000,000 HSBC Securities (USA) Inc.,
purchased on 04/30/04 ............. 1.13 05/03/04 600,000,000
400,000,000 J.P. Morgan Chase & Co.,
purchased on 04/30/04 ............. 1.18 05/03/04 400,000,000
100,000,000 Morgan Stanley & Co., Inc.,
purchased on 04/30/04 ............. 1.11 05/03/04 100,000,000
- --------------------------------------------------------------------------------------------------------------
Total Collateralized Advancements
(Cost $2,125,000,000) ............... 2,125,000,000
- --------------------------------------------------------------------------------------------------------------
Time 560,048,000 National City Bank, Cayman .......... 1.02 05/03/04 560,048,000
Deposits -- 3.0% 800,000,000 SunTrust Bank, Cayman ............... 1.03 05/03/04 800,000,000
- --------------------------------------------------------------------------------------------------------------
Total Time Deposits
(Cost $1,360,048,000) ............... 1,360,048,000
- --------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
36
- ---------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
Repurchase $ 300,000,000 Deutsche Bank Securities Inc.,
Agreements purchased on 04/30/04 ............. 1.02% 05/03/04 $ 300,000,000
- -- 0.6%
- ---------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $300,000,000) ................. 300,000,000
- ---------------------------------------------------------------------------------------------------------------------
Money Market 336,784,211 Merrill Lynch Liquidity Series, LLC
Funds -- Money Market Series (b)(c) ........ 336,784,211
7.4% 3,031,057,914 Merrill Lynch Premier Institutional
Fund (b)(c) ....................... 3,031,057,914
- ---------------------------------------------------------------------------------------------------------------------
Total Money Market Funds
(Cost $3,367,842,125) ............... 3,367,842,125
- ---------------------------------------------------------------------------------------------------------------------
Total Investments -- 108.4%
(Cost $49,572,964,161) .............. 49,572,276,162
- ---------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other
Assets -- (8.4%) .................... (3,843,926,895)
- ---------------------------------------------------------------------------------------------------------------------
Net Assets .......................... $45,728,349,267
=====================================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2004, net unrealized depreciation amounted to $687,999
and is comprised of $4,820,690 in appreciation and $5,508,689 in
depreciation.
* Commercial Paper and Some U.S. Government and Agency Issues are traded on a
discount basis; the interest rate shown is the discount rate paid at the
time of purchase by the Fund. Other securities bear interest at the rates
shown, payable at fixed dates or upon maturity; the rates shown are the
rates in effect at April 30, 2004. For variable rate instruments, the next
date on which the interest rate is to be adjusted is deemed the maturity
date for valuation.
(a) Restricted securities--Investment in securities not registered under the
Securities Act of 1933.
Additional information on each holding is as follows:
Security Acquisition Date Cost
Allstate Life Insurance Co.
1.18%, 06/15/04 ........................................... 06/12/03 $100,000,000
GE Life and Annuity Assurance Co.
1.14%, 10/01/04 ........................................... 09/29/03 $ 50,000,000
1.15%, 11/01/04 ........................................... 11/03/03 $ 50,000,000
Goldman Sachs Group, Inc.
1.14%, 09/07/04 ........................................... 12/09/03 $150,000,000
1.21%, 10/01/04 ........................................... 01/06/04 $150,000,000
Hartford Life Insurance Co.
1.18%, 05/03/04 ........................................... 04/30/03 $100,000,000
1.18%, 12/01/04 ........................................... 12/01/03 $ 50,000,000
1.19%, 05/02/05 ........................................... 05/03/04 $100,000,000
See Notes to Financial Statements.
37
- ------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------------
Security Acquisition Date Cost
ING USA Annuity and Life Insurance Co.
1.18%, 06/24/04 ................................................ 03/24/04 $ 60,000,000
1.19%, 01/20/05 ................................................ 01/20/04 $100,000,000
J.P. Morgan Chase & Co.
1.16%, 12/23/04 ................................................ 03/01/04 $360,000,000
Jackson National Life Insurance Co.
1.17%, 05/03/04 ................................................ 04/30/03 $ 40,000,000
Metropolitan Life Insurance Co.
1.16%, 09/01/04 ................................................ 08/26/03 $210,000,000
Monumental Life Insurance Co.
1.24%, 08/13/04 ................................................ 08/08/03 $ 60,000,000
1.25%, 05/23/05 ................................................ 04/23/04 $ 90,000,000
New York Life Insurance Co.
1.16%, 05/28/04 ................................................ 05/30/03 $100,000,000
1.20%, 10/20/04 ................................................ 10/20/03 $136,000,000
1.20%, 12/08/04 ................................................ 12/04/03 $150,000,000
Travelers Insurance Co. (The)
1.15%, 03/01/05 ................................................ 03/01/04 $ 35,000,000
United of Omaha Life Insurance Co.
1.20%, 04/27/05 ................................................ 04/28/04 $100,000,000
The fund invested in securities that are not registered under the Securities
Act of 1933. At the end of the period, the value of restricted securities
(excluding 144A issues) amounted to $2,191,000,000 or 4.8% of net assets.
(b) Investments in companies considered to be an affiliate of the Trust (such
companies are defined as "Affiliated Companies" in section 2(a)(3) of the
Investment Company Act of 1940) are as follows:
Dividend/
Interest
Affiliate Net Activity Income
Merrill Lynch Liquidity Series, LLC Money Market Series ......... $ 336,784,211 $ 130,183
Merrill Lynch Premier Institutional Fund ........................ $3,031,057,914 $1,969,549
(c) Security was purchased with the cash proceeds from securities loans.
See Notes to Financial Statements.
38
- -----------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Statement of Assets and Liabilities
April 30, 2004
- -----------------------------------------------------------------------------------------------------------------
Assets:
Investments in securities subject to repurchase agreements ............... $ 300,000,000
Investments in other marketable securities
(including securities loaned of $3,266,700,000) ......................... 49,272,276,162
--------------
Total investments at value (identified cost $49,572,964,161) (Note 1a) .................. $49,572,276,162
Cash ....................................................................................... 27,838,622
Interest receivable ........................................................................ 48,014,619
Securities lending income receivable ....................................................... 434,204
---------------
Total assets ............................................................................ 49,648,563,607
---------------
Liabilities:
Collateral on securities loaned, at value .................................................. 3,367,842,125
Advisory fee payable (Note 2) .............................................................. 2,374,681
Payable for investments purchased .......................................................... 549,907,500
Accrued expenses ........................................................................... 90,034
---------------
Total liabilities ....................................................................... 3,920,214,340
---------------
Net Assets applicable to investors' interests .............................................. $45,728,349,267
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals .................................... $45,729,037,266
Net unrealized depreciation ................................................................ (687,999)
---------------
Total ...................................................................................... $45,728,349,267
===============
- -----------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund
Statement of Operations
For the Year Ended April 30, 2004
- -----------------------------------------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ............................................................... $ 601,500,243
Securities lending income (Note 1f) ........................................................ 2,099,732
-------------
Total income ............................................................................ 603,599,975
-------------
Expenses:
Investment advisory fee (Note 2) ........................................................... 25,069,101
Accounting and custodian services .......................................................... 1,002,467
Dividend and transfer agency fees .......................................................... 52,228
-------------
Total expense ........................................................................... 26,123,796
-------------
Net investment income ................................................................... 577,476,179
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ........................... $ 3,079,426
Net unrealized depreciation of investments ............................... (28,102,314)
-------------
Net realized and unrealized loss from investments ....................................... (25,022,888)
-------------
Net Increase in Net Assets Resulting From Operations ....................................... $ 552,453,291
=============
See Notes to Financial Statements.
39
- -----------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund Year Ended April 30,
Statements of Changes in Net Assets ------------------------------------------
2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net assets:
Operations:
Net investment income ................................................... $ 577,476,179 $ 828,646,679
Net realized gain from investment transactions .......................... 3,079,426 6,270,875
Net unrealized appreciation (depreciation) of investments ............... (28,102,314) 1,610,421
------------------ ------------------
Net increase in net assets resulting from operations .................... 552,453,291 836,527,975
------------------ ------------------
Capital Transactions:
Contributions from feeders .............................................. 111,504,393,757 107,101,565,999
Withdrawals from feeders ................................................ (110,924,144,307) (109,744,102,031)
------------------ ------------------
Net increase (decrease) in net assets from capital transactions ......... 580,249,450 (2,642,536,032)
------------------ ------------------
Net increase (decrease) in net assets ................................... 1,132,702,741 (1,806,008,057)
Net Assets:
Beginning of year ....................................................... 44,595,646,526 46,401,654,583
------------------ ------------------
End of year ............................................................. $ 45,728,349,267 $ 44,595,646,526
================== ==================
- -----------------------------------------------------------------------------------------------------------------------
Master Premier Institutional Fund Year Ended April 30, For the Period
Supplementary Data ------------------------------- January 14, 2002*
2004 2003 to April 30, 2002
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets ...................... .05% .05% .05%(1)
Ratio of net investment income to average net assets ......... 1.15% 1.70% 1.79%(1)
Net Assets, end of period (000) .............................. $45,728,349 $44,595,647 $46,401,655
(1) On an annualized basis
* Commencement of Operations
See Notes to Financial Statements.
40
- ---------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments
April 30, 2004
- ---------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------
U.S. $ 50,000,000 U.S. Treasury Notes ................. 1.63% 10/31/05 $ 49,750,000
Government 25,000,000 Fannie Mae .......................... 3.88 03/15/05 25,507,813
& Agency 25,000,000 Fannie Mae .......................... 7.00 07/15/05 26,523,437
Issues -- 6.3% 50,000,000 Fannie Mae .......................... 2.11 08/26/05 50,062,500
50,000,000 Fannie Mae .......................... 1.88 09/15/05 49,921,875
25,000,000 Fannie Mae .......................... 2.34 09/16/05 25,070,313
50,000,000 Fannie Mae .......................... 2.10 10/21/05 50,000,000
20,000,000 Fannie Mae .......................... 2.50 11/20/05 19,950,000
10,000,000 Fannie Mae .......................... 2.60 11/28/05 9,971,875
10,145,000 Federal Home Loan Banks ............. 1.50 05/13/05 10,125,978
52,800,000 Federal Home Loan Banks ............. 1.75 08/15/05 52,701,000
50,000,000 Federal Home Loan Banks ............. 1.50 08/26/05 49,734,375
19,000,000 Freddie Mac ......................... 3.25 11/15/04 19,201,875
50,000,000 Freddie Mac ......................... 1.50 05/13/05 49,904,295
25,000,000 Freddie Mac ......................... 2.29 10/28/05 25,064,275
30,000,000 Freddie Mac ......................... 2.30 11/17/05 30,075,000
50,000,000 Freddie Mac ......................... 2.41 11/17/05 50,130,655
24,000,000 Freddie Mac ......................... 2.50 11/25/05 23,986,896
30,000,000 Freddie Mac ......................... 2.35 12/09/05 30,083,367
25,000,000 Freddie Mac ......................... 2.50 12/15/05 24,976,475
- ---------------------------------------------------------------------------------------------------------------
Total U.S. Government & Agency
Issues (Cost $672,596,924) .......... 672,742,004
- ---------------------------------------------------------------------------------------------------------------
U.S. Government 193,000,000 Fannie Mae .......................... 0.97 05/27/04 192,993,787
Agency Issues -- 200,000,000 Fannie Mae .......................... 1.05 10/29/04 199,981,820
Variable Rate -- 350,000,000 Fannie Mae .......................... 1.02 01/28/05 349,934,624
32.8% 200,000,000 Fannie Mae .......................... 1.04 03/16/05 199,991,229
150,000,000 Fannie Mae .......................... 1.04 03/23/05 149,973,065
325,000,000 Fannie Mae .......................... 1.00 08/17/05 324,873,535
500,000,000 Fannie Mae .......................... 0.98 08/29/05 499,682,545
282,500,000 Fannie Mae .......................... 0.98 10/03/05 282,363,016
165,000,000 Federal Home Loan Banks ............. 1.00 07/14/04 164,988,450
80,400,000 Federal Home Loan Banks ............. 1.01 08/19/04 80,395,150
200,000,000 Federal Home Loan Banks ............. 0.98 09/17/04 199,969,491
205,000,000 Federal Home Loan Banks ............. 1.04 03/30/05 204,957,544
50,000,000 Federal Home Loan Banks ............. 1.00 08/02/05 49,990,567
See Notes to Financial Statements.
41
- ---------------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
U.S. Government $ 250,000,000 Federal Home Loan Banks ................... 0.99% 09/12/05 $ 249,810,648
Agency Issues -- 100,000,000 Federal Home Loan Banks ................... 0.99 10/03/05 99,933,811
Variable Rate 40,000,000 Federal Farm Credit Banks ................. 1.02 11/04/04 40,000,000
(continued) 20,870,000 Federal Farm Credit Banks ................. 1.01 03/24/05 20,862,514
25,000,000 Federal Farm Credit Banks ................. 1.00 05/02/05 24,994,993
50,000,000 Federal Farm Credit Banks ................. 1.02 06/13/05 49,994,419
20,000,000 Federal Farm Credit Banks ................. 1.03 02/12/07 19,994,432
50,000,000 Freddie Mac ............................... 1.10 10/07/05 49,991,400
20,000,000 Freddie Mac ............................... 1.03 02/12/09 19,980,865
- ---------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Issues -- Variable Rate
(Cost $3,475,567,506) ..................... 3,475,657,905
- ---------------------------------------------------------------------------------------------------------------------
Certificates of 200,000,000 Citibank N.A., New York ................... 1.04 05/24/04 200,000,000
Deposit -- 6.6% 500,000,000 Wells Fargo Bank, N.A. .................... 1.03 05/18/04 500,000,000
- ---------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost $700,000,000) ....................... 700,000,000
- ---------------------------------------------------------------------------------------------------------------------
Euro 40,000,000 Credit Agricole Indosuez .................. 1.13 12/30/04 39,911,244
Certificates of 100,000,000 HBOS Treasury Services PLC ................ 1.06 06/01/04 100,000,000
Deposit -- 2.7% 150,000,000 KBC Bank, NV .............................. 1.05 05/17/04 150,000,666
- ---------------------------------------------------------------------------------------------------------------------
Total Euro Certificates of Deposit
(Cost $289,997,951) ....................... 289,911,910
- ---------------------------------------------------------------------------------------------------------------------
Yankee 100,000,000 Credit Suisse First Boston, NY ............ 1.04 05/21/04 100,000,000
Certificates of 200,000,000 Credit Suisse First Boston NY ............. 1.04 06/08/04 200,000,000
Deposit -- 4.9% 120,000,000 HBOS Treasury Services PLC ................ 1.04 05/14/04 120,000,000
100,000,000 Royal Bank of Scotland .................... 1.06 07/30/04 99,980,850
- ---------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of Deposit
(Cost $519,992,517) ....................... 519,980,850
- ---------------------------------------------------------------------------------------------------------------------
Yankee 200,000,000 BNP Paribas, NY ........................... 1.05 04/26/05 199,960,272
Certificates of 125,000,000 Canadian Imperial Bank of
Deposit -- Commerce, NY ............................ 1.05 05/28/04 125,000,000
Variable 160,000,000 Credit Agricole Indosuez, London .......... 1.05 04/19/05 159,976,882
Rate -- 8.1%
See Notes to Financial Statements.
42
- ---------------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
Yankee $ 100,000,000 Rabobank Nederland N.V., NY ................ 1.04% 05/03/05 $ 99,977,500
Certificates of 200,000,000 Svenska Handelsbanken AB, NY ............... 1.04 04/25/05 199,960,402
Deposit -- 50,000,000 SwedBank ................................... 1.05 01/21/05 49,994,515
Variable Rate 25,000,000 Westpac Banking Corp ....................... 1.10 03/11/05 25,000,000
(continued)
- ---------------------------------------------------------------------------------------------------------------------
Total Yankee Certificates of
Deposit -- Variable Rate
(Cost $859,869,571) ........................ 859,869,571
- ---------------------------------------------------------------------------------------------------------------------
Medium Term 75,000,000 CC (USA) Inc. (Centauri) ................... 1.07 10/08/04 74,997,525
Notes -- Variable 25,000,000 CC (USA) Inc. (Centauri) ................... 1.07 10/12/04 24,999,100
Rate -- 5.1% 20,000,000 CC (USA) Inc. (Centauri) ................... 1.05 03/07/05 19,995,942
25,000,000 CC (USA) Inc. (Centauri) ................... 1.04 03/10/05 24,994,373
50,000,000 Dorada Finance Inc. ........................ 1.06 04/26/05 49,988,100
60,000,000 Household Finance Corp. .................... 1.12 08/18/04 60,010,014
52,000,000 Morgan Stanley ............................. 1.09 05/04/05 51,993,448
56,000,000 Northern Rock PLC .......................... 1.13 04/08/05 55,997,306
50,000,000 Sigma Finance Inc. ......................... 1.06 06/18/04 49,999,016
50,000,000 Sigma Finance Inc. ......................... 1.06 06/28/04 49,998,818
65,000,000 Sigma Finance Inc. ......................... 1.07 09/22/04 65,000,000
10,000,000 Sigma Finance Inc. ......................... 1.06 03/10/05 9,998,500
- ---------------------------------------------------------------------------------------------------------------------
Total Medium Term Notes --
Variable Rate (Cost $537,975,693) .......... 537,972,142
- ---------------------------------------------------------------------------------------------------------------------
Time 307,447,000 SunTrust Banks Inc., Cayman ................ 1.03 05/03/04 307,447,000
Deposits -- 2.9%
- ---------------------------------------------------------------------------------------------------------------------
Total Time Deposits
(Cost $307,447,000) ........................ 307,447,000
- ---------------------------------------------------------------------------------------------------------------------
Bank Notes -- 25,000,000 Bank One, NA, Chicago ...................... 1.03 05/20/04 24,999,615
Variable
Rate -- 0.2%
- ---------------------------------------------------------------------------------------------------------------------
Total Bank Notes -- Variable Rate
(Cost $24,999,615) ......................... 24,999,615
- ---------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
43
- -------------------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------------------------------------------
Corporate $ 59,000,000 BMW U.S. Capital Corp. ..................... 4.07% 06/07/04 $ 59,168,910
Notes -- 0.6%
- -------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes
(Cost $59,168,910) ......................... 59,168,910
- -------------------------------------------------------------------------------------------------------------------------
Corporate 50,000,000 Associates Corp. of North America .......... 1.21 06/25/04 50,000,000
Notes -- Variable 100,000,000 Canadian Imperial Bank of
Rate -- 3.4% Commerce, NY ............................... 1.15 05/13/05 100,000,000
100,000,000 General Electric Capital Corp. ............. 1.18 05/17/05 100,094,700
28,000,000 Metropolitan Life Global Funding I ......... 1.11 05/13/05 27,999,552
45,500,000 Morgan Stanley ............................. 1.11 05/27/05 45,498,043
31,500,000 Nationwide Building Society ................ 1.11 04/28/05 31,506,773
- -------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes -- Variable
Rate (Cost $355,000,000) ................... 355,099,068
- -------------------------------------------------------------------------------------------------------------------------
Master Notes -- 30,000,000 Allstate Life Insurance Co. (a) ............ 1.18 06/15/04 30,000,000
Variable 45,000,000 GE Life and Annuity Assurance Co. (a) ...... 1.14 10/01/04 45,000,000
Rate -- 3.6% 100,000,000 Goldman Sachs Group, Inc. (a) .............. 1.14 09/07/04 100,000,000
50,000,000 Goldman Sachs Group, Inc. (a) .............. 1.21 10/01/04 50,000,000
40,000,000 Monumental Life Insurance Co. (a) .......... 1.24 08/13/04 40,000,000
40,000,000 Monumental Life Insurance Co. (a) .......... 1.25 05/23/05 40,000,000
45,000,000 New York Life Insurance Company (a). 1.16 05/28/04 45,000,000
35,000,000 New York Life Insurance Company (a). 1.20 10/20/04 35,000,000
- -------------------------------------------------------------------------------------------------------------------------
Total Master Notes -- Variable Rate
(Cost $385,000,000) ........................ 385,000,000
- -------------------------------------------------------------------------------------------------------------------------
Commercial 100,000,000 Abbey National, NA Corporation ............. 1.03 06/30/04 99,823,330
Paper -- 15.4% 47,300,000 Amsterdam Funding Corp. .................... 1.04 05/26/04 47,265,839
50,000,000 Clipper Receivables Company LLC ............ 1.05 06/14/04 49,935,833
100,000,000 Clipper Receivables Company LLC ............ 1.05 06/30/04 99,823,330
99,745,000 Compass Securitization LLC ................. 1.04 05/19/04 99,693,133
37,135,000 Compass Securitization LLC ................. 1.04 06/15/04 37,086,725
100,000,000 Edison Asset Securitization LLC ............ 1.04 05/03/04 99,994,222
63,276,000 Edison Asset Securitization LLC ............ 1.04 07/06/04 63,152,106
34,543,000 Falcon Asset Securitization ................ 1.04 05/18/04 34,526,036
100,000,000 Fcar Owner Trust ........................... 1.05 06/10/04 99,883,333
See Notes to Financial Statements.
44
- ---------------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
Commercial $ 100,000,000 General Electric Capital Corp. .......... 1.05% 05/13/04 $ 99,965,000
Paper 100,196,000 Jupiter Securitization Corp. ............ 1.04 05/18/04 100,147,029
(continued) 50,000,000 Jupiter Securitization Corp. ............ 1.04 05/19/04 49,974,125
125,000,000 KittyHawk Funding Corp. ................. 1.03 05/21/04 124,928,472
60,000,000 Mont Blanc Capital Corp. ................ 1.05 05/19/04 59,968,500
60,000,000 Mont Blanc Capital Corp. ................ 1.03 05/20/04 59,967,383
20,000,000 PB Finance (Delaware) Inc. .............. 1.05 06/14/04 19,974,333
30,000,000 PB Finance (Delaware) Inc. .............. 1.07 07/07/04 29,940,294
73,046,000 Sheffield Receivables Corp. ............. 1.03 05/07/04 73,033,460
174,770,000 Sheffield Receivables Corp. ............. 1.03 05/20/04 174,674,993
55,500,000 Spintab AB .............................. 1.04 05/05/04 55,493,587
55,527,000 Tulip Funding Corp. ..................... 1.04 05/19/04 55,498,126
- ---------------------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $1,634,759,075) ................... 1,634,749,189
- ---------------------------------------------------------------------------------------------------------------------
Commercial 48,000,000 Morgan Stanley .......................... 1.14 10/28/04 48,000,000
Paper -- Variable 50,000,000 White Pine Corporation .................. 1.05 11/22/04 49,995,772
Rate -- 0.9%
- ---------------------------------------------------------------------------------------------------------------------
Total Commercial Paper -- Variable
Rate (Cost $97,995,772) ................. 97,995,772
- ---------------------------------------------------------------------------------------------------------------------
Collateralized 51,000,000 Blue Heron IX, Class A .................. 1.13 02/23/05 51,000,000
Debt 24,000,000 Putman Structured Product 2002-1
Obligations -- ass A-1 ............................... 1.19 04/15/05 24,000,000
Variable
Rate -- 0.7%
- ---------------------------------------------------------------------------------------------------------------------
Total Collateralized Debt
Obligations -- Variable Rate
(Cost $75,000,000) ...................... 75,000,000
- ---------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
45
- -------------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------------
Interest Maturity Value
Face Amount Rate* Date (Note 1a)
- -------------------------------------------------------------------------------------------------------------------
Collateralized $ 100,000,000 Barclays Capital Inc.,
Advancements -- purchased on 4/30/04 ............ 1.11% 05/03/04 $ 100,000,000
4.5% 175,000,000 Citigroup Global Markets Inc.,
purchased on 4/30/04 ............ 1.16 05/03/04 175,000,000
100,000,000 Goldman Sachs & Company,
purchased on 4/30/04 ............ 1.09 05/03/04 100,000,000
100,000,000 Goldman Sachs & Company,
purchased on 4/30/04 ............ 1.16 05/03/04 100,000,000
- -------------------------------------------------------------------------------------------------------------------
Total Collateralized Advancements
(Cost $475,000,000) ............... 475,000,000
- -------------------------------------------------------------------------------------------------------------------
Repurchase 200,000,000 Deutsche Bank Securities Inc.,
Agreements purchased on 4/30/04 ............ 1.02 05/03/04 200,000,000
- -- 1.9%
- -------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $200,000,000) ............... 200,000,000
- -------------------------------------------------------------------------------------------------------------------
Total Investments -- 100.6%
(Cost $10,670,370,534) ............ 10,670,593,936
- -------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other
Assets -- (0.6%) .................. (67,420,047)
- -------------------------------------------------------------------------------------------------------------------
Net Assets ........................ $10,603,173,889
===================================================================================================================
Note--Costs for federal income tax purposes are the same as those shown
above. At April 30, 2004, net unrealized appreciation amounted to $223,402
and is comprised of $985,722 in appreciation and $762,320 in depreciation.
* Commercial Paper and some U.S. Government Agency Issues are traded on a
discount basis; the interest rate shown is the discount rate paid at the
time of purchase by the Fund. Other securities bear interest at the rates
shown, payable at fixed dates or upon maturity; the rates shown are the
rates in effect at April 30, 2004. For variable rate instruments, the next
date on which the interest rate is to be adjusted is deemed the maturity
date for valuation.
See Notes to Financial Statements.
46
- --------------------------------------------------------------------------------
Master Institutional Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------
(a) Restricted securities--Investment in securities not registered under the
Securities Act of 1933.
Additional information on each holding is as follows:
Security Acquisition Date Cost
Allstate Life Insurance Co.
1.18%, 06/15/04 .............................. 06/12/03 $ 30,000,000
GE Life and Annuity Assurance Co.
1.14%, 10/01/04 .............................. 09/29/03 $ 45,000,000
Goldman Sachs Group, Inc.
1.14%, 09/07/04 .............................. 12/09/03 $100,000,000
1.21%, 10/01/04 .............................. 01/06/04 $ 50,000,000
Monumental Life Insurance Co.
1.24%, 08/13/04 .............................. 08/08/03 $ 40,000,000
1.25%, 05/23/05 .............................. 04/23/04 $ 40,000,000
New York Life Insurance Co.
1.16%, 05/28/04 .............................. 05/30/03 $ 45,000,000
1.20%, 10/20/04 .............................. 10/20/03 $ 35,000,000
The fund invested in securities that are not registered under the Securities Act
of 1933. At the end of the period, the value of restricted securities (excluding
144A issues) amounted to $385,000,000 or 3.6% of net assets.
See Notes to Financial Statements.
47
- ------------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Statement of Assets and Liabilities
April 30, 2004
- ------------------------------------------------------------------------------------------------------------------
Assets:
Investments in securities subject to repurchase agreements ................ $ 200,000,000
Investments in other marketable securities ................................ 10,470,593,936
--------------
Total investments, at value (identified cost $10,670,370,534) (Note 1a) .................. $10,670,593,936
Cash ........................................................................................ 21,504,738
Interest receivable ......................................................................... 11,605,125
---------------
Total assets ............................................................................. 10,703,703,799
---------------
Liabilities:
Advisory fee payable (Note 2) ............................................................... 528,560
Payable for investments purchased ........................................................... 99,977,500
Accrued expenses ............................................................................ 23,850
---------------
Total liabilities ........................................................................ 100,529,910
---------------
Net Assets applicable to investors' interests ............................................... $10,603,173,889
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals ..................................... $10,602,950,487
Net unrealized appreciation ................................................................. 223,402
---------------
Total ....................................................................................... $10,603,173,889
===============
- ------------------------------------------------------------------------------------------------------------------
Master Institutional Fund
Statement of Operations
For the Year Ended April 30, 2004
- ------------------------------------------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ................................................................ $144,153,258
------------
Expenses:
Investment advisory fee (Note 2) ............................................................ 6,057,338
Accounting and custodian services ........................................................... 245,671
Dividend and transfer agency fees ........................................................... 52,228
------------
Total expense ............................................................................ 6,355,237
------------
Net investment income .................................................................... 137,798,021
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ............................ $ 580,917
Net unrealized depreciation of investments ................................ (5,844,767)
------------
Net realized and unrealized loss from investments ........................................ (5,263,850)
------------
Net Increase in Net Assets Resulting From Operations ........................................ $132,534,171
============
See Notes to Financial Statements.
48
- -----------------------------------------------------------------------------------------------------------------------
Master Institutional Fund Year Ended April 30,
Statements of Changes in Net Assets ----------------------------------------
2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Decrease in Net assets:
Operations:
Net investment income ..................................................... $ 137,798,021 $ 225,040,370
Net realized gain from investment transactions ............................ 580,917 1,558,230
Net unrealized depreciation of investments ................................ (5,844,767) (177,624)
----------------- -----------------
Net increase in net assets resulting from operations ...................... 132,534,171 226,420,976
Capital Transactions:
Contributions from feeders ................................................ 19,475,397,343 29,798,523,351
Withdrawals from feeders .................................................. (20,666,984,788) (31,203,003,587)
----------------- -----------------
Net decrease in net assets from capital transactions ...................... (1,191,587,445) (1,404,480,236)
----------------- -----------------
Net decrease in net assets ................................................ (1,059,053,274) (1,178,059,260)
Net Assets:
Beginning of year ......................................................... 11,662,227,163 12,840,286,423
----------------- -----------------
End of year ............................................................... $ 10,603,173,889 $ 11,662,227,163
================= =================
- -----------------------------------------------------------------------------------------------------------------------
Master Institutional Fund Year Ended April 30, For the Period
Supplementary Data ------------------------------- January 14, 2002*
2004 2003 to April 30, 2002
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets ...................... .05% .05% .05%(1)
Ratio of net investment income to average net assets ......... 1.14% 1.71% 1.81%(1)
Net Assets, end of period (000) .............................. $10,603,174 $11,662,227 $12,840,286
(1) On an annualized basis
* Commencement of Operations
See Notes to Financial Statements.
49
- --------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments
April 30, 2004
- --------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------
Alabama -- $ 7,500,000 Athens-Limestone County Health Care Authority
2.2% VRDN 1.14% due 05/01/2015 (a) .................... $ 7,500,000
30,000,000 Columbia, Alabama IDA PCR (Alabama Power Co.)
DDN 1.16% due 11/01/2021 (a) ..................... 30,000,000
35,000,000 Decatur, Alabama IDB Solid Waste Disposal Revenue
(Amoco Chemical Co. Project) VRDN 1.16%
due 08/01/2036 (a) ............................... 35,000,000
Jefferson County, Alabama Sewer Revenue Warrants
VRDN:
69,500,000 (Series B-7) 1.08% due 02/01/2042 (a) ............ 69,500,000
30,000,000 (Series C-3) 1.13% due 02/01/2040 (a) ............ 30,000,000
20,000,000 (Series C-4) 1.13% due 02/01/2040 (a) ............ 20,000,000
45,000,000 (Series C-6) 1.08% due 02/01/2040 (a) ............ 45,000,000
3,015,000 Tuscaloosa, Alabama Educational Building Authority
Revenue (American Christian Education) VRDN
1.24% due 01/01/2023 (a) ......................... 3,015,000
7,000,000 West Jefferson, Alabama IDB PCR (Power Co.
Project) DDN 1.12% due 06/01/2028 (a) ............ 7,000,000
- --------------------------------------------------------------------------------------------------
Alaska -- 0.3% 33,000,000 Valdez, Alaska Marine Revenue (Conoco Phillips
Project) CP 1.25% due 06/01/2004 ................. 33,000,000
- --------------------------------------------------------------------------------------------------
Arizona -- 0.8% 30,000,000 Maricopa County, Arizona IDA Health Facilities
Revenue (Putters -- Series 420) VRDN 1.16%
due 01/01/2010 (a)(b) ............................ 30,000,000
Maricopa County, Arizona IDA S/F Mortgage
Revenue FXRDN:
11,807,218 (Series A) 1.13% due 08/01/2004 .................. 11,807,218
5,000,000 (Series B) 1.13% due 08/01/2004 .................. 5,000,000
13,620,000 (Series R-2) 1.14% due 12/01/2004 ................ 13,620,000
32,961,561 Phoenix, Arizona IDA S/F Housing Notes (Series A)
FXRDN 1.10% due 07/01/2004 ....................... 32,961,561
- --------------------------------------------------------------------------------------------------
Arkansas -- 1,555,000 Arkansas Hospital Equipment Finance Authority
0.9% Revenue (AHA Pooled Financing Program) VRDN
1.22% due 11/01/2028 (a) ......................... 1,555,000
See Notes to Financial Statements.
50
- ------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ------------------------------------------------------------------------------------------------------
Arkansas $ 7,000,000 Arkansas State Development Finance Authority
(continued) Environmental Facilities Revenue (Teris LLC
Project) VRDN 1.16% due 03/01/2021 (a) ............. $ 7,000,000
3,750,000 Arkansas State Development Finance Authority M/F
Housing Revenue (Chapel Ridge -- Series C)
VRDN 1.24% due 05/01/2031 (a) ...................... 3,750,000
31,469,000 Arkansas State Development Finance Authority S/F
Housing Revenue FXRDN 1.22% due 09/01/2004 (b) 31,469,000
39,605,299 Arkansas State Development Finance Authority S/F
Housing Revenue Floater Certificates (Series 708)
VRDN 1.13% due 09/01/2006 (a)(b) ................... 39,605,299
10,000,000 North Little Rock, Arkansas Health Facilities Board
Revenue (Baptist Health -- Series B) VRDN 1.12%
due 12/01/2021 (a) ................................. 10,000,000
6,650,000 Pulaski County, Arkansas Public Facilities Board M/F
Revenue (Chapel Ridge -- South West) VRDN
1.21% due 10/01/2034 (a) ........................... 6,650,000
- ------------------------------------------------------------------------------------------------------
California -- 42,330,000 California Rural Home Mortgage Financial Authority
5.3% S/F Mortgage Revenue FXRDN 1.10%
due 07/25/2004 ..................................... 42,330,000
9,885,000 California State (Merlots B-45) VRDN 1.10%
due 10/01/2029 (a)(b) .............................. 9,885,000
449,650,000 California State (Series A) RAN 2.00%
due 06/16/2004 ..................................... 450,119,934
14,800,000 California Statewide Community Development
Authority Revenue (Series K) CP 1.04%
due 07/19/2004 ..................................... 14,800,000
12,500,000 California Statewide Community Development
Authority Revenue (Floaters -- Series 909) VRDN
1.14% due 08/15/2023 (a)(b) ........................ 12,500,000
20,000,000 California Statewide Community Development
Authority Revenue (Series J) VRDN 1.09%
due 04/01/2036 (a) ................................. 20,000,000
35,000,000 Los Angeles, California S/F Home Mortgage Revenue
FXRDN 1.09% due 10/01/2004 ......................... 35,000,000
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
51
- ------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ------------------------------------------------------------------------------------------------------
Colorado $ 4,150,000 Arvada, Colorado Utility IPMS Water Enterprise
- -- 2.0% Revenue (Dexia Public Finance) VRDN 1.25%
due 11/01/2020 (a) .................................. $ 4,150,000
5,935,000 Castle Pines North Metropolitan District VRDN
1.22% due 12/01/2028 (a) ............................ 5,935,000
7,405,000 Colorado Department of Transportation Revenue
(Putters -- Series 318) VRDN 1.13%
due 06/15/2015 (a)(b) ............................... 7,405,000
15,000,000 Colorado Educational & Cultural Facilities Authority
Revenue (Student Housing -- Fuller Project) VRDN
1.22% due 08/01/2035 (a) ............................ 15,000,000
18,520,000 Colorado Health Facilities Authority Revenue
(Catholic Health -- Series B) VRDN 1.11%
due 03/01/2032 (a) .................................. 18,520,000
35,715,000 Colorado Housing & Finance Authority M/F
(Series C-2) VRDN 1.14% due 10/01/2032 (a) .......... 35,715,000
17,000,000 Colorado Housing & Finance Authority S/F
(Series B-3) VRDN 1.14% due 11/01/2026 (a) .......... 17,000,000
50,000,000 Colorado Student Educational Loan Program TRAN
1.75% due 08/09/2004 ................................ 50,094,629
5,615,000 Denver, Colorado City & County Airport Revenue
(Merlots -- Series A-61) VRDN 1.20%
due 11/15/2012 (a)(b) ............................... 5,615,000
7,295,000 Denver, Colorado City & County S/F Mortgage
Revenue (Series A) FXRDN 1.08% due 05/25/2004. 7,295,000
Denver, Colorado Health & Hospital Authority
Healthcare Revenue DDN:
2,900,000 (Series A) 1.15% due 12/01/2032 (a) ................. 2,900,000
4,330,000 (Series B) 1.15% due 12/01/2031 (a) ................. 4,330,000
9,215,000 El Paso County, Colorado Certificates Partnership
(ROCS RR ll-R 1050) VRDN 1.15%
due 12/01/2020 (a)(b) ............................... 9,215,000
8,015,000 El Paso County, Colorado Certificates Partnership
(ROCS RR ll-R 2002) VRDN 1.15%
due 12/01/2019 (a)(b) ............................... 8,015,000
See Notes to Financial Statements.
52
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Colorado $ 6,805,000 El Paso County, Colorado S/F Mortgage Revenue
(continued) (Series A) FXRDN 1.08% due 05/25/2004 ................... $ 6,805,000
14,100,000 Lower Colorado, River Authority Revenue (Series A)
CP 1.08% due 07/14/2004 ................................. 14,100,000
6,915,000 Regional Transportation District Sales Tax Revenue
(Series 679) VRDN 1.14% due 05/01/2010 (a) .............. 6,915,000
5,750,000 Traer Creek, Colorado Metropolitan District Revenue
VRDN 1.17% due 10/01/2021 (a) ........................... 5,750,000
- ---------------------------------------------------------------------------------------------------------
Delaware -- 4,815,000 Delware State (ROCS RR II R 4045) VRDN 1.15%
0.0% due 07/01/2012 (a)(b) ................................... 4,815,000
- ---------------------------------------------------------------------------------------------------------
District of 5,915,000 District of Columbia Certificates of Partnership
Columbia -- (ROCS RR II R 231) VRDN 1.15%
1.5% due 01/01/2013 (a)(b) ................................... 5,915,000
59,425,000 District of Columbia Housing Finance Agency
Mortgage Revenue S/F FXRDN 1.10%
due 12/24/2004 .......................................... 59,425,000
4,570,000 District of Columbia Revenue (Washington Very SPL
Arts) VRDN 1.18% due 01/01/2027 (a) ..................... 4,570,000
10,000,000 District of Columbia Revenue Board (American
National Red Cross) CP 0.95% due 05/03/2004 ............. 10,000,000
40,000,000 District of Columbia TRAN 2.00% due 09/30/2004 ............ 40,145,077
Metropolitan Washington D.C. Airport Authority
General Airport Revenue CP:
16,800,000 (Series 99-A) 0.98% due 05/05/2004 ...................... 16,800,000
10,600,000 (Series A) 0.97% due 05/06/2004 ......................... 10,600,000
20,095,000 Washington D.C. Convention Center Authority
Dedicated Tax Revenue Floater Certificates
(Series 539) VRDN 1.14% due 10/01/2021 (a)(b) ........... 20,095,000
- ---------------------------------------------------------------------------------------------------------
Florida -- 3.9% 39,650,000 Alachua County, Florida Health Facilities (Oak
Hammock at University of Florida Project --
Series A) DDN 1.10% due 10/01/2032 (a) .................. 39,650,000
2,393,000 Bay County, Florida Housing Finance Authority S/F
Mortgage Revenue (FRTC Series 695) VRDN
1.29% due 06/01/2004 (a)(b) ............................. 2,393,000
See Notes to Financial Statements.
53
- -------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------------------------
Florida $ 5,000,000 Brevard County, Florida Health Facilities Authority
(continued) Revenue (Wuesthoff Health System Project) VRDN
1.09% due 01/01/2034 (a) .............................. $ 5,000,000
25,550,000 Broward County, Florida Health Facilities Authority
Revenue (John Knox VLG Florida Project) DDN
1.18% due 09/01/2032 (a) .............................. 25,550,000
28,295,000 Capital Projects Finance Authority (Glenridge on
Palmer Ranch -- Series C) DDN 1.10%
due 06/01/2012 (a) .................................... 28,295,000
56,145,000 Capital Trust Agency, Florida -- M/F Housing
Revenue Bond (Series 99-B) VRDN 1.18%
due 12/01/2032 (a) .................................... 56,145,000
25,395,000 Escambia County, Florida Health Facilities Authority
Revenue (Azalea Trace Inc. -- Series B) DDN
1.23% due 11/15/2029 (a) .............................. 25,395,000
6,000,000 Florida State Board of Education VRDN 1.12%
due 06/01/2032 (a) .................................... 6,000,000
4,900,000 Florida State Board of Education VRDN 1.15%
due 06/01/2018 (a) .................................... 4,900,000
2,920,000 FSU Final Assistance Inc., Florida Educational Athletic
Facilities Revenue (MSTR SGB 44-A) VRDN
1.15% due 10/01/2031 (a)(b) ........................... 2,920,000
29,215,000 Gulf Breeze, Florida Revenue (Local Government
Loan Project -- Series C) VRDN 1.10%
due 12/01/2015 (a) .................................... 29,215,000
5,000,000 Highland County, Florida Health Facilities Authority
Revenue (Adventist Health -- System C) VRDN
1.28% due 11/15/2021 (a) .............................. 5,000,000
10,000,000 Jacksonville, Florida PCR (Florida Power & Light Co.
Project ) DDN 1.17% due 05/01/2029 (a) ................ 10,000,000
4,600,000 Jacksonville, Florida Sales Tax Revenue (Merlot B-26)
VRDN 1.15% due 10/01/2027 (a)(b) ...................... 4,600,000
12,500,000 Lakeland, Florida Energy System Revenue (Series A)
VRDN 1.10% due 10/01/2035 (a) ......................... 12,500,000
See Notes to Financial Statements.
54
- -------------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------------------------------
Florida Lee County, Florida Hospital Board Directors
(continued) Revenue (Member Health System) DDN:
$ 14,600,000 (Series A) 1.12% due 04/01/2025 (a) ...................... $14,600,000
52,205,000 (Series B) 1.12% due 04/01/2027 (a) ...................... 52,205,000
15,000,000 Miami Dade County, Florida IDA Solid Waste
Disposal Revenue (Power & Light Company
Project) DDN 1.10% due 12/01/2023 (a) .................... 15,000,000
17,060,000 Orange County, Florida Health Facilities Authority
Revenue Floater Certificates (Series 531) VRDN
1.15% due 11/15/2021 (a)(b) .............................. 17,060,000
16,500,000 Orange County, Florida Health Facilities Authority
Revenue Floater Certificates (Series 830) VRDN
1.14% due 11/15/2022 (a)(b) .............................. 16,500,000
15,000,000 Orlando, Florida Utilities Community Water &
Electric Revenue (Series A) VRDN 1.08%
due 10/01/2017 (a) ....................................... 15,000,000
36,260,000 Orlando & Orange County Expressway Authority
(Florida Expressway Revenue -- Series C-1) VRDN
1.08% due 07/01/2025 (a) ................................. 36,260,000
- -------------------------------------------------------------------------------------------------------------
Georgia -- 2.6% 5,000,000 Albany -- Dougherty County, Georgia Hospital
Authority Revenue VRDN 1.14%
due 09/01/2020 (a)(b) .................................... 5,000,000
17,805,000 Atlanta, Georgia Urban Residential Finance Authority
FXRDN 1.14% due 12/01/2004 ............................... 17,805,000
7,000,000 Atlanta, Georgia Urban Residential Finance Authority
VRDN 1.19% due 03/01/2043 (a) ............................ 7,000,000
13,955,000 Atlanta, Georgia Water & Wastewater Revenue
(Series 745-D) VRDN 1.14% due 11/01/2017 (a)(b) .......... 13,955,000
3,000,000 Atlanta, Georgia Water & Wastewater Revenue
VRDN 1.12% due 11/01/2033 (a)(b) ......................... 3,000,000
17,700,000 Burke County, Georgia Development Authority PCR
(Georgia Power Co.) FXRDN 1.08%
due 04/19/2005 ........................................... 17,700,000
See Notes to Financial Statements.
55
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Georgia $ 10,000,000 Clayton County, Georgia Development Authority
(continued) Facilities Revenue (Delta Airlines -- Series C)
VRDN 1.17% due 05/01/2035 (a) ..................... $10,000,000
7,550,000 Cobb County, Georgia Housing M/F Housing
Revenue (Walton Reserve Apartments Project)
VRDN 1.17% due 10/01/2035 (a) ..................... 7,550,000
10,650,000 Coloquitt County, Georgia Hospital Authority
Revenue VRDN 1.22% due 03/01/2023 (a) ............. 10,650,000
13,050,000 Crisp County, Georgia Solid Waste Management
Authority Revenue VRDN 1.53%
due 01/01/2023 (a) ................................ 13,050,000
30,000,000 Dekalb County, Georgia School District TAN 2.00%
due 12/31/2004 .................................... 30,236,178
19,145,000 Eagle Tax-Exempt Trust -- State of Georgia (Series
981002) VRDN 1.15% due 07/01/2014 (a)(b) .......... 19,145,000
22,955,000 Eagle Tax-Exempt Trust -- State of Georgia (Series
991001) VRDN 1.15% due 11/01/2017 (a)(b) .......... 22,955,000
10,000,000 Fulton County, Georgia Housing Authority Revenue
VRDN 1.18% due 12/01/2034 (a) ..................... 10,000,000
Gainesville & Hall County, Georgia Development
Authority Revenue (Senior Living Facilities --
Lanier) DDN:
10,750,000 (Series A) 1.18% due 11/15/2010 (a) ............... 10,750,000
4,150,000 (Series C) 1.23% due 11/15/2030 (a) ............... 4,150,000
3,620,000 Gainesville & Hall County, Georgia Development
Authority Revenue (Atex Inc. Project) VRDN
1.29% due 09/01/2023 (a) .......................... 3,620,000
4,515,000 Georgia State Local Government Certificates of
Partnerships (Macon Trust Series 2002-0) VRDN
1.17% due 12/01/2022 (a) .......................... 4,515,000
4,515,000 Georgia State Local Government Certificates of
Partnerships (Macon Trust Series 2002-0) VRDN
1.17% due 06/01/2028 (a) .......................... 4,515,000
3,700,000 Gwinnett County, Georgia Development Authority
Revenue (Barcoview LLC Project) VRDN 1.26%
due 07/01/2018 (a) ................................ 3,700,000
See Notes to Financial Statements.
56
- ---------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------
Georgia $ 4,000,000 Gwinnett County, Georgia Development Authority
(continued) Revenue Certificates of Partnerships (ROCS RR II R
6009) VRDN 1.15% due 01/01/2021 (a)(b) ............ $ 4,000,000
12,000,000 La Grange, Georgia Development Authority Revenue
(La Grange College Project) VRDN 1.15%
due 06/01/2031 (a) ................................ 12,000,000
10,550,000 Metropolitan Atlanta Rapid Transit Authority Sales
Tax Revenue (Putters -- Series 312) VRDN 1.13%
due 07/01/2021 (a)(b) ............................. 10,550,000
3,235,000 Metropolitan Atlanta Rapid Transit Authority Sales
Tax Revenue (ROCS RR II R 4011) VRDN 1.15%
due 07/01/2019 (a)(b) ............................. 3,235,000
9,800,000 Private Colleges & Universities Authority Revenue
(Mercer University Project) VRDN 1.22%
due 10/01/2032 (a) ................................ 9,800,000
10,400,000 Putnam County, Georgia Development Authority PCR
(Power Plant Branch -- 1st -- Series 97) FXRDN
1.20% due 04/19/2005 .............................. 10,400,000
2,240,000 Thomaston-Upson County, Georgia IDA Revenue
(Thomaston Manufacturing Project) VRDN 1.26%
due 12/01/2011 (a) ................................ 2,240,000
15,000,000 Ware County, Georgia Hospital Authority Revenue
(Baptist Village Project) VRDN 1.09%
due 11/01/2020 (a) ................................ 15,000,000
- ---------------------------------------------------------------------------------------------------
Hawaii -- 0.0% 2,665,000 Honolulu, Hawaii City & County (ROCS RR II R
5025) VRDN 1.15% due 07/01/2014 (a)(b) ............ 2,665,000
- ---------------------------------------------------------------------------------------------------
Idaho -- 0.2% 4,250,000 Idaho Housing & Finance Association Nonprofit
Facilities Revenue (Albertson College Project)
VRDN 1.12% due 11/01/2021 (a) ..................... 4,250,000
10,400,000 Idaho Housing & Finance Association S/F Mortgage
(Series F) VRDN 1.14% due 01/01/2033 (a) .......... 10,400,000
1,620,000 Madison, Idaho Economic Development Corp. IDR
(Floyd Wilcox & Sons, Inc. Project) VRDN 1.27%
due 08/01/2012 (a) ................................ 1,620,000
- ---------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
57
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Illinois -- 5.7% $ 2,325,000 Aurora, Illinois IDR (Aztech Engineering Inc. Project)
VRDN 1.30% due 10/01/2018 (a) .......................... $ 2,325,000
42,626,007 Aurora, Illinois Kane-Dupage County S/F Mortgage
Revenue (Floaters -- Series A) VRDN 1.14%
due 04/01/2005 (a) ..................................... 42,626,007
26,000,000 Aurora, Illinois Kane-Dupage County S/F Mortgage
Revenue (Floaters -- Series 789) VRDN 1.21%
due 04/03/2006 (a)(b) .................................. 26,000,000
4,800,000 Chicago, Illinois Eagle 2003-0006 VRDN 1.15%
due 01/01/2042 (a)(b) .................................. 4,800,000
2,500,000 Chicago, Illinois O'Hare International Airport
Revenue (ROCS RR II R 239) VRDN 1.19%
due 01/01/2022 (a)(b) .................................. 2,500,000
8,000,000 Chicago, Illinois O'Hare International Airport
Revenue (O'Hare Technical Center II Project)
VRDN 1.20% due 03/01/2037 (a) .......................... 8,000,000
7,085,000 Chicago, Illinois Park District (Merlots -- Series A-61)
VRDN 1.15% due 01/01/2021 (a)(b) ....................... 7,085,000
2,975,000 Chicago, Illinois Public Building Revenue VRDN
1.15% due 12/01/2014 (a) ............................... 2,975,000
4,600,000 Chicago, Illinois Solid Waste Disposal Facilities
Revenue (Groot Industries Inc. Project) VRDN
1.28% due 12/01/2015 (a) ............................... 4,600,000
10,085,000 Chicago, Illinois Wastewater Transmission Revenue
(Merlots -- Series A-125) VRDN 1.15% due
01/01/2030 (a)(b) ...................................... 10,085,000
3,595,000 Cook County, Illinois (Merlots -- Series B-11) VRDN
1.15% due 11/15/2025 (a)(b) ............................ 3,595,000
2,275,000 Des Plaines, Illinois IDR (414 East Golf Road Project)
VRDN 1.28% due 05/01/2017 (a) .......................... 2,275,000
11,150,000 Eagle Tax-Exempt Trust -- Metropolitan Pier &
Exposition II (Series 02-6001) VRDN 1.15%
due 06/15/2042 (a)(b) .................................. 11,150,000
2,795,000 Elgin, Illinois IDR (Starro Precision Products Inc.
Project) VRDN 1.28% due 06/01/2025 (a) ................. 2,795,000
See Notes to Financial Statements.
58
- ------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ------------------------------------------------------------------------------------------------------
Illinois $ 300,000 Geneva, Illinois IDR (Continental Envelope Corp.
(continued) Project) VRDN 1.28% due 09/01/2006 (a) ................. $ 300,000
5,170,000 Gurnee, Illinois IDR (Sterigenics International Project)
VRDN 1.21% due 05/01/2016 (a) .......................... 5,170,000
19,400,000 Illinois Education Facilities Authority Revenue
(Art Institute of Chicago) VRDN 1.08%
due 03/01/2027 (a) ..................................... 19,400,000
14,000,000 Illinois Education Facilities Authority Revenue
(Concordia University River Project) DDN 1.13%
due 10/01/2031 (a) ..................................... 14,000,000
10,000,000 Illinois Education Facilities Authority Revenue
(ITT State Street Corp -- Series A) VRDN 1.17%
due 06/01/2033 (a) ..................................... 10,000,000
24,800,000 Illinois Health Facilities Authority Revenue (Victory
Health Service -- Series B) CP 1.00%
due 06/01/2004 ......................................... 24,800,000
46,900,000 Illinois Health Facilities Authority Revenue (Central
Dupage Health -- Series B) DDN 1.11%
due 11/01/2027 (a) ..................................... 46,900,000
50,000,000 Illinois Health Facilities Authority Revenue (Central
Dupage Health -- Series C) DDN 1.11%
due 11/01/2027 (a) ..................................... 50,000,000
32,700,000 Illinois Health Facilities Authority Revenue
(Northwest Community Hospital -- Series B) DDN
1.11% due 07/01/2032 (a) ............................... 32,700,000
2,090,000 Illinois Health Facilities Authority Revenue (Chestnut
Square Glen Project -- Series C) VRDN 1.09%
due 08/15/2032 (a) ..................................... 2,090,000
10,000,000 Illinois Health Facilities Authority Revenue
(Resurrection Health -- Series A) DDN 1.10%
due 05/15/2029 (a) ..................................... 10,000,000
22,835,000 Illinois Housing Development Authority Revenue
FXRDN 0.99% due 04/01/2005 ............................. 22,835,000
2,760,000 Illinois State Development Finance Authority IDR
(Design Automotive LLC Project) VRDN 1.28%
due 06/01/2011 (a) ..................................... 2,760,000
See Notes to Financial Statements.
59
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Illinois $ 2,450,000 Illinois State Development Finance Authority IDR
(continued) (Rockford College Project) VRDN 1.23%
due 02/01/2021 (a) ...................................... $ 2,450,000
1,400,000 Illinois State Development Finance Authority
(AMR Pooled -- Series B-2) VRDN 1.22%
due 10/01/2029 (a) ...................................... 1,400,000
28,900,000 Illinois State Municipal Securities Trust Receipts (SGA
103) VRDN 1.13% due 08/01/2024 (a) ...................... 28,900,000
45,000,000 Illinois State (Series B) VRDN 1.09%
due 10/01/2033 (a) ...................................... 45,000,000
4,320,000 Illinois State (Merlots -- Series A-124) VRDN 1.15%
due 11/01/2026 (a)(b) ................................... 4,320,000
4,995,000 Illinois State (Merlots -- Series B-05) VRDN 1.15%
due 07/01/2022 (a)(b) ................................... 4,995,000
4,500,000 Illinois Student Assistance Loan Revenue (Series A)
VRDN 1.14% due 09/01/2031 (a) ........................... 4,500,000
13,650,000 Illinois Student Assistance Loan Revenue (Series A)
VRDN 1.14% due 09/01/2032 (a) ........................... 13,650,000
17,500,000 Illinois Student Assistance Loan Revenue (Series A)
VRDN 1.14% due 09/01/2034 (a) ........................... 17,500,000
5,800,000 Lake County, Illinois Community School District --
73 (Hawthorn Putters -- Series 329) VRDN 1.17%
due 12/01/2014 (a) ...................................... 5,800,000
5,000,000 Macon County, Illinois Revenue Millikin University
VRDN 1.13% due 10/01/2031(a) ............................ 5,000,000
14,915,000 Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue (Putters -- Series 298)
VRDN 1.17% due 06/15/2030 (a)(b) ........................ 14,915,000
7,500,000 Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue (Floaters -- Series
913) VRDN 1.09% due 12/15/2032 (a)(b) ................... 7,500,000
Metropolitan Pier & Exposition Authority Illinois
Dedicated State Tax Revenue VRDN:
3,715,000 (ROCS RR II R 270) 1.24% due 12/15/2031 (a)(b) .......... 3,715,000
3,110,000 (ROCS RR II R 271) 1.24% due 12/15/2032 (a)(b) .......... 3,110,000
See Notes to Financial Statements.
60
- -----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------
Illinois $ 12,100,000 Municipal Securities Trust Certificates -- Chicago,
(continued) Illinois O'Hare International Airport (Class A --
Series 93) DDN 1.15% due 10/04/2012 (a) ................ $12,100,000
12,160,000 Municipal Securities Trust Certificates -- Chicago,
Illinois (Class A -- Series 2001-121) VRDN 1.12%
due 12/22/2009 (a)(b) .................................. 12,160,000
12,495,000 Municipal Securities Trust Certificates -- Chicago,
Illinois (Class A -- Series 2001-124) VRDN 1.13%
due 08/20/2014 (a)(b) .................................. 12,495,000
1,970,000 Peoria, Illinois IDR (CDC Realty L.P. Project) VRDN
1.28% due 12/01/2014 (a) ............................... 1,970,000
32,942,500 Regional Transportation Authority Illinois (Floaters --
Series D-818) VRDN 1.14% due 07/01/2033 (a)(b) 32,942,500
4,965,000 Regional Transportation Authority Illinois (Merlots --
Series A-41) VRDN 1.15% due 06/01/2017 (a)(b) .......... 4,965,000
9,970,000 Regional Transportation Authority Illinois (Merlots --
Series A-24) VRDN 1.15% due 07/01/2032 (a)(b) .......... 9,970,000
7,660,000 University of Illinois, University Revenue (Merlots --
Series A-38) VRDN 1.15% due 04/01/2034 (a)(b) .......... 7,660,000
- -----------------------------------------------------------------------------------------------------------
Indiana -- 3.5% 1,415,000 Allen County, Indiana EDR (Water Furnace
International Inc.) VRDN 1.26%
due 11/01/2014 (a) ..................................... 1,415,000
805,000 Allen County, Indiana EDR (YMCA of Greater Fort
Wayne Project) VRDN 1.21% due 12/01/2009 (a) ........... 805,000
3,475,000 Baugo, Indiana School Building Corporation
(Floaters -- Series 676) VRDN 1.14%
due 01/15/2010 (a)(b) .................................. 3,475,000
1,405,000 Bloomington, Indiana EDR (Bloomington Square
Project) VRDN 1.23% due 12/01/2008 (a) ................. 1,405,000
2,100,000 Crawfordsville, Indiana EDR (Performance Master
LLC Project) VRDN 1.28% due 10/01/2018 (a) ............. 2,100,000
1,945,000 Dearborn County, Indiana EDR (D&S Machine
Products Inc.) VRDN 1.23% due 04/01/2018 (a) ........... 1,945,000
3,295,000 Elkhart County, Indiana EDR (Patriot Homes Inc.
Project) VRDN 1.27% due 08/01/2012 (a) ................. 3,295,000
See Notes to Financial Statements.
61
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Indiana $ 6,010,000 Greencastle, Indiana IDR (Crown Equipment Corp.
(continued) Project) VRDN 1.17% due 02/01/2011 (a) ............... $ 6,010,000
213,575,000 Indiana Bond Bank Revenue (Series A) BAN 2.00%
due 01/25/2005 ....................................... 214,970,844
21,905,000 Indiana Health Facilities Financing Authority Hospital
Revenue (Clarian Health Obligation -- Series B)
VRDN 1.10% due 03/01/2030 (a) ........................ 21,905,000
6,600,000 Indiana State Development Finance Authority Revenue
Educational Facilities (Cathedral High) DDN
1.15% due 09/01/2026 (a) ............................. 6,600,000
2,040,000 Indiana State Development Finance Authority EDR
(Indianapolis Urban League Inc.) VRDN 1.16%
due 01/01/2020 (a) ................................... 2,040,000
40,250,000 Indiana State Development Finance Authority
Environmental Revenue (PSI Energy Inc. Project --
Series B) VRDN 1.34% due 12/01/2038 (a) .............. 40,250,000
560,000 Indiana State Development Finance Authority IDR
(Centurion Industries Inc. Project) VRDN 1.26%
due 10/01/2005 (a) ................................... 560,000
10,900,000 Indiana State Development Finance Authority IDR
(Republic Services Inc. Project) DDN 1.15%
due 12/01/2032 (a) ................................... 10,900,000
Indiana State Development Finance Authority Solid
Waste Disposal Revenue Waste Management
Incorporated VRDN:
12,500,000 (Series A) 1.15% due 10/01/2025 (a) .................. 12,500,000
7,000,000 (Series B) 1.17% due 10/01/2025 (a) .................. 7,000,000
Indiana State Educational Facilities Authority Revenue
(Depauw University Project) DDN:
3,700,000 1.10% due 07/01/2018 (a) ............................. 3,700,000
5,400,000 1.10% due 07/01/2032 (a) ............................. 5,400,000
9,085,000 Indiana State Office Building Community Facilities
Revenue (Merlot -- Series B-17) VRDN 1.15% due
07/01/2023 (a)(b) .................................... 9,085,000
3,940,000 Indianapolis, Indiana EDR (New Bridges Apartments
Project) VRDN 1.17% due 06/01/2035 (a) ............... 3,940,000
See Notes to Financial Statements.
62
- -----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------
Indiana $ 24,000,000 Indianapolis, Indiana Gas Utilities Revenue CP 1.00%
(continued) due 05/06/2004 ......................................... $24,000,000
5,025,000 Indianapolis, Indiana Gas Utility Revenue (Merlot --
Series A-50) VRDN 1.15% due 06/01/2013 (a)(b) .......... 5,025,000
2,620,000 Indianapolis, Indiana Local Public Board (Putters --
Series 422) VRDN 1.17% due 08/15/2020 (a)(b) ........... 2,620,000
- -----------------------------------------------------------------------------------------------------------
Iowa -- 1.5% 32,400,000 Iowa City, Iowa Revenue (Act Inc.) DDN 1.20%
due 04/01/2032 (a) ..................................... 32,400,000
4,445,000 Iowa Finance Authority M/F Revenue
(The Gables at Johnston Project) VRDN 1.16%
due 12/01/2037 (a) ..................................... 4,445,000
6,500,000 Iowa Finance Authority Retirement Community
Revenue (Wesley Retirement Services -- Series B)
VRDN 1.09% due 12/01/2033 (a) .......................... 6,500,000
25,000,000 Iowa Finance Authority Retirement Community
Revenue (Deerfield Retirement System -- Series B)
VRDN 1.09% due 12/01/2033 (a) .......................... 25,000,000
Iowa Finance Authority Revenue (Museum of Art
Foundation) DDN:
6,550,000 1.15% due 06/01/2033 (a) ............................... 6,550,000
14,500,000 1.15% due 10/01/2033 (a) ............................... 14,500,000
9,100,000 Iowa Higher Education Loan Authority Revenue
(Buena Vista University Project) VRDN 1.27%
due 12/01/2012 (a) ..................................... 9,100,000
10,600,000 Iowa Higher Education Loan Authority Revenue
(Private College -- Ambrose) DDN 1.10%
due 04/01/2033 (a) ..................................... 10,600,000
10,200,000 Iowa Higher Education Loan Authority Revenue
(Private College -- Des Moines) DDN 1.15%
due 10/01/2033 (a) ..................................... 10,200,000
6,515,000 Iowa Higher Education Loan Authority Revenue
(Loras College Project) DDN 1.10%
due 11/01/2030 (a) ..................................... 6,515,000
3,900,000 Louisa County, Iowa PCR Refunding (Iowa-Ill G&E
Co.) VRDN 1.15% due 03/01/2017 (a) ..................... 3,900,000
See Notes to Financial Statements.
63
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Iowa $ 19,500,000 Louisa County, Iowa PCR Refunding (Iowa-Ill G&E
(continued) Co. -- Series A) VRDN 1.15% due 09/01/2016 (a). $19,500,000
15,370,000 Municipal Securities Trust Certificates (Iowa Finance
Authority Hospital Facilities Revenue Health System
Class A -- Series 26) VRDN 1.15% due
06/01/2010 (a) ...................................... 15,370,000
- --------------------------------------------------------------------------------------------------------
Kansas -- 0.3% 10,170,000 Kansas State Development Finance Authority Revenue
(Hays Medical Center -- Series N) DDN 1.15%
due 05/15/2026 (a) .................................. 10,170,000
4,340,000 Lawrence, Kansas IDR Board (Prosoco Inc. Project --
Series 98-A) VRDN 1.27% due 12/01/2018 (a) .......... 4,340,000
4,200,000 Lenexa, Kansas M/F Housing Revenue (Meadows
Apartments Project -- Series A) VRDN 1.14%
due 04/15/2035 (a) .................................. 4,200,000
12,700,000 Olathe, Kansas Health Facilities Revenue (Olathe
Medical Center -- Series A) DDN 1.10%
due 09/01/2032 (a) .................................. 12,700,000
2,800,000 Reno County & Labette County, Kansas S/F
Mortgage Revenue (Floaters -- Series 915) VRDN
1.12% due 12/01/2015 (a) ............................ 2,800,000
- --------------------------------------------------------------------------------------------------------
Kentucky -- 1,115,000 Boone County, Kentucky Industrial Building Revenue
1.9% (Diocesan Educational Project) VRDN 1.28%
due 11/01/2018 (a) .................................. 1,115,000
2,400,000 Carroll County, Kentucky PCR (Kentucky Utility Co.
Project -- Series A) CP 1.17%
due 05/19/2004 ...................................... 2,400,000
2,500,000 Carroll County, Kentucky Solid Waste Disposal
Revenue (North American Stainless) VRDN 1.11%
due 05/01/2031 (a) .................................. 2,500,000
3,000,000 Crestview Hill, Kentucky Industrial Building Revenue
(Thomas More College Project) VRDN 1.18%
due 11/01/2018 (a) .................................. 3,000,000
1,415,000 Dayton, Kentucky Industrial Building Revenue
(Willow Green Project) VRDN 1.28%
due 08/01/2020 (a) .................................. 1,415,000
See Notes to Financial Statements.
64
- -------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------------------------
Kentucky $ 4,440,000 Glasgow, Kentucky Industrial Building Revenue
(continued) (Felker Brothers Corp. Project) VRDN 1.15%
due 04/01/2020 (a) .................................... $ 4,440,000
2,700,000 Graves County, Kentucky Solid Waste Disposal
Revenue (Waste Mangement Kentucky LLC Project)
VRDN 1.19% due 03/01/2021 (a) ......................... 2,700,000
18,210,000 Hopkins County, Kentucky Hospital Revenue
(Floaters -- Series 730) VRDN 1.15%
due 11/15/2011 (a)(b) ................................. 18,210,000
3,160,000 Jefferson County, Kentucky Industrial Building
Revenue (Hamilton Printing Project) VRDN 1.23%
due 12/01/2011 (a) .................................... 3,160,000
1,000,000 Jefferson County, Kentucky Industrial Building
Revenue (Thomas Development Project) VRDN
1.15% due 05/05/2004 (a) .............................. 1,000,000
9,000,000 Jefferson County, Kentucky Environmental Facilities
Revenue (Louisville Gas & Electric Co. -- Series A)
VRDN 1.10% due 05/03/2004 (a) ......................... 9,000,000
11,000,000 Jefferson County, Kentucky PCR (Louisville Gas &
Electric Co.) CP 1.12% due 05/06/2004 ................. 11,000,000
1,000,000 Jefferson County, Kentucky PCR (Louisville Gas &
Electric Co -- Series 93-A) CP 1.26%
due 05/05/2004 ........................................ 1,000,000
45,200,000 Kenton County, Kentucky Airport Board of Special
Facilities Revenue (Airis Cincinnati LLC -- Series
A) VRDN 1.12% due 07/01/2032 (a) ...................... 45,200,000
5,740,000 Kenton County, Kentucky Enducational Revenue
(St. Pius X School District Project) VRDN 1.18%
due 06/01/2023 (a) .................................... 5,740,000
20,000,000 Kentucky State Turnpike Authority Resource Recovery
Revenue Floater Certificates (Series 488) VRDN
1.14% due 07/01/2007 (a)(b) ........................... 20,000,000
7,400,000 Mercer County, Kentucky PCR (Kentucky Utility Co.
Project -- Series A) CP 1.17% due 05/19/2004 .......... 7,400,000
See Notes to Financial Statements.
65
- ----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ----------------------------------------------------------------------------------------------------
Kentucky $ 2,000,000 Midway, Kentucky Educational Building Revenue
(continued) (Midway College Project) VRDN 1.11%
due 10/01/2022 (a) ................................. $ 2,000,000
5,000,000 Minor Lane Heights, Kentucky Solid Waste Disposal
Revenue (Waste Management Kentucky LLC
Project) VRDN 1.19% due 03/01/2021 (a) ............. 5,000,000
7,200,000 Muhlenbery County, Kentucky PCR (Kentucky Utility
Co. Project -- Series A) CP 1.17% due 05/19/2004. 7,200,000
1,450,000 Ohio County, Kentucky Solid Waste Disposal Revenue
(Waste Management Kentucky LLC Project) VRDN
1.19% due 03/01/2021 (a) ........................... 1,450,000
2,745,000 Shelby County, Kentucky IDR (Truss Co. Inc.
Kingbrook Commerce Park LLC Project) VRDN
1.21% due 06/01/2018 (a) ........................... 2,745,000
Timble County, Kentucky PCR (Louisville Gas &
Electric Co. Project -- Series A) CP:
17,500,000 1.08% due 05/03/2004 ............................... 17,500,000
20,000,000 1.10% due 05/03/2004 ............................... 20,000,000
4,600,000 1.15% due 05/05/2004 ............................... 4,600,000
4,495,000 Wickliffe, Kentucky PCR & Solid Waste Disposal
Revenue (Westvaco Corp. Project) VRDN 1.09%
due 01/01/2009 (a) ................................. 4,495,000
- --------------------------------------------------------------------------------------------------------
Louisiana -- 4,500,000 Calcasieu Parish Inc. of Louisiana IDB Environmental
1.6% Revenue (Hydroserve Westlake) VRDN 1.13%
due 06/01/2025 (a) ................................. 4,500,000
36,000,000 East Baton Rouge Mortgage Financing Authority
(Series A-R-4) FXRDN 1.13% due 05/03/2004 .......... 36,000,000
20,013,433 Jefferson Parish, Louisiana Home Mortgage Authority
S/F Mortgage Revenue (Series B) FXRDN 1.09%
due 09/24/2004 ..................................... 20,013,433
Louisiana Housing Finance Agency Mortgage Revenue
S/F FXRDN:
5,735,242 1.13% due 05/28/2004 ............................... 5,735,242
10,187,136 1.12% due 04/29/2005 ............................... 10,187,136
31,926,816 1.13% due 05/28/2004 ............................... 31,926,816
See Notes to Financial Statements.
66
- -------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------------------------
Louisiana $ 10,000,000 Louisiana Public Facilities Authority Lease Revenue
(continued) VRDN 1.14% due 06/01/2008 (a) ...................... $10,000,000
9,975,000 Louisiana Public Facilities Authority Revenue
(Equipment & Capital Facilities Loan Project --
Series A) VRDN 1.19% due 07/01/2023 (a) ............ 9,975,000
16,000,000 Louisiana State Offshore Term Authority Deepwater
Port Revenue (1st Stage A-Loop Inc.) DDN 1.09%
due 09/01/2008 (a) ................................. 16,000,000
11,435,000 Louisiana State University & Agricultural &
Mechanical College Board VRDN 1.19%
due 07/01/2032 (a) ................................. 11,435,000
5,875,000 New Orleans, Louisiana IDB M/F Housing Revenue
(LGD Rental Inc. Project) VRDN 1.16%
due 09/01/2038 (a) ................................. 5,875,000
13,750,000 New Orleans, Louisiana IDB M/F Housing Revenue
FXRDN 1.09% due 12/01/2004 ......................... 13,750,000
- -------------------------------------------------------------------------------------------------------
Maine -- 0.3% 1,960,000 Eastport, Maine IDR (Passamaquoddy Tribe) VRDN
1.18% due 11/01/2006 (a) ........................... 1,960,000
1,450,000 Gray, Maine Revenue (Advance Realty Project)
VRDN 1.10% due 10/01/2011 (a) ...................... 1,450,000
24,745,000 Maine Finance Authority Revenue (Jackson Lab Issue
2002) VRDN 1.17% due 07/01/2031 (a) ................ 24,745,000
600,000 Millinocket, Maine Revenue (Gardner Chipmills
Project) VRDN 1.27% due 03/01/2005 (a) ............. 600,000
4,015,000 Portland, Maine Revenue Obligation (Grass Properties
& Applicators) VRDN 1.15% due 10/01/2020 (a) ....... 4,015,000
4,305,000 Trenton, Maine Revenue (The Talaria Co. Project)
VRDN 1.27% due 10/15/2015 (a) ...................... 4,305,000
- -------------------------------------------------------------------------------------------------------
Maryland -- 5,250,000 Anne Arundel County, Maryland PCR (Baltimore Gas
0.2% & Electric) FXRDN 1.23% due 07/01/2004 ............. 5,250,000
10,000,000 Montgomery County, Maryland EDR (Riderwood
Village Inc. Project) VRDN 1.10%
due 03/01/2034 (a) ................................. 10,000,000
See Notes to Financial Statements.
67
- -------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------------------------
Maryland $ 5,000,000 Maryland State Health & Higher Educational
(continued) Facilities Authority Revenue (Floater -- Series 825)
VRDN 1.05% due 08/15/2038 (a)(b) ...................... $ 5,000,000
- -------------------------------------------------------------------------------------------------------
Massachusetts -- 9,000,000 Blackstone Valley, Massachusetts Vocational Regional
4.3% School District BAN 1.75% due 07/15/2004 .............. 9,013,721
8,518,000 Clipper Tax-Exempt Trust -- Massachusetts Turnpike
Authority (Series 2000-2) FXRDN 1.05%
due 08/12/2004 (b) .................................... 8,518,000
9,140,000 Clipper Tax-Exempt Trust Housing Finance Authority
(Series 2000-5) VRDN 1.17% due 12/30/2004 (a)(b) ...... 9,140,000
15,000,000 Dover & Sherborn, Massachusetts Regional School
District BAN 1.75% due 11/12/2004 ..................... 15,052,312
8,439,347 Hull, Massachusetts BAN 1.75% due 07/15/2004 ............ 8,452,179
9,900,000 Lynn, Massachusetts BAN 2.00% due 10/15/2004 ............ 9,940,655
5,480,000 Massachusetts State Central Artery (Series A) DDN
1.10% due 12/01/2030 (a) .............................. 5,480,000
7,000,000 Massachusetts State Development Finance Agency
Revenue CP 0.95% due 08/20/2004 ....................... 7,000,000
7,500,000 Massachusetts State Development Finance Agency
Solid Waste Disposal Revenue (Waste Manangement
Inc. Project) DDN 1.14% due 05/01/2027 (a) ............ 7,500,000
5,000,000 Massachusetts State Development Finance Agency
Solid Waste Disposal Revenue (Wheelabrator
Millbury Project) DDN 1.14% due 05/01/2027 (a) ........ 5,000,000
31,000,000 Massachusetts State Development Finance Agency
Revenue (Draper Laboratory Issue) VRDN 1.08%
due 06/01/2030 (a) .................................... 31,000,000
9,850,000 Massachusetts State Development Finance Agency
Revenue (Cordis Mills LLC) VRDN 1.14%
due 12/01/2032 (a) .................................... 9,850,000
10,820,000 Massachusetts State Development Finance Agency
Revenue (Gordon College) VRDN 1.12%
due 09/01/2032 (a) .................................... 10,820,000
See Notes to Financial Statements.
68
- ----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ----------------------------------------------------------------------------------------------------------
Massachusetts $ 25,000,000 Massachusetts State Development Finance Agency
(continued) Revenue (Suffolk University Asset Guaranty) VRDN
1.22% due 07/01/2032 (a) .............................. $25,000,000
2,500,000 Massachusetts State Development Finance Agency
Revenue (Walnut Hill School District) VRDN
1.09% due 07/01/2032 (a) .............................. 2,500,000
5,000,000 Massachusetts State Development Finance Agency
Revenue (Lesley University) VRDN 1.17%
due 07/01/2033 (a) .................................... 5,000,000
30,000,000 Massachusetts State Development Finance Agency
Revenue (Wentworth Institute of Technology)
VRDN 1.20% due 10/01/2033 (a) ......................... 30,000,000
12,700,000 Massachusetts State Health & Educational Facilities
Authority Revenue (Endicott College -- Series C)
VRDN 1.08% due 10/01/2031 (a) ......................... 12,700,000
6,100,000 Massachusetts State Health & Educational Facilities
Authority Revenue (The Boston Home Inc. -- Series
B) VRDN 1.12% due 06/01/2032 (a) ...................... 6,100,000
10,500,000 Massachusetts State Industrial Finance Agency
Revenue PCR (New England Power Co. Project --
Series A) CP 1.00% due 05/12/2004 ..................... 10,500,000
28,865,500 Massachusetts State Floater Certificates (Series 716-D)
VRDN 1.09% due 08/01/2018 (a)(b) ...................... 28,865,500
14,860,000 Massachusetts State (Merlots -- Series A-51) VRDN
1.12% due 08/01/2020 (a)(b) ........................... 14,860,000
57,983,000 Massachusetts State Water Resource Authority
(Floaters -- Series 742-D) VRDN 1.14%
due 08/01/2019 (a) .................................... 57,983,000
5,000,000 Mattapoisett, Massachusetts BAN 1.40%
due 09/02/2004 ........................................ 5,005,856
16,400,000 Municipal Securities Trust Certificates --
Massachusetts State Port Authority SPL Facility
VRDN 1.15% due 04/28/2016 (a)(b) ...................... 16,400,000
11,000,000 Nashoba, Massachusetts Regional School District
BAN 2.00% due 12/03/2004 .............................. 11,048,041
See Notes to Financial Statements.
69
- ------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ------------------------------------------------------------------------------------------------------
Massachusetts $ 6,500,000 New Bedford, Massachusetts RAN 1.75%
(continued) due 06/30/2004 ....................................... $ 6,507,034
4,441,703 North Adams, Massachusetts BAN 2.00%
due 02/25/2005 ....................................... 4,472,369
11,000,000 Norwell, Massachusetts BAN 2.00% due 02/17/2005 ...... 11,076,285
10,000,000 Old Rochester, Massachusetts Regional School District
BAN 1.75% due 10/15/2004 ............................. 10,031,657
10,000,000 Pembroke, Massachusetts BAN 2.00%
due 08/05/2004 ....................................... 10,025,424
5,000,000 Quincy, Massachusetts BAN 2.00% due 11/12/2004 ......... 5,022,902
5,264,900 Shirley, Massachusetts BAN 2.00% due 04/08/2005 ...... .. 5,311,251
27,411,000 Springfield, Massachusetts BAN 3.00%
due 06/18/2004 ....................................... 27,476,714
13,500,000 Springfield, Massachusetts RAN 2.25%
due 06/30/2004 ....................................... 13,520,912
12,997,000 Springfield, Massachusetts BAN 2.50%
due 07/08/2004 ....................................... 13,028,005
- --------------------------------------------------------------------------------------------------------
Michigan -- 7,090,000 Chelsea, Michigan Economic Development Corp.
3.0% Revenue (Silver Maples of Chelsea) VRDN 1.15%
due 05/15/2028 (a) ................................... 7,090,000
9,035,000 Dearborn, Michigan Economic Development Corp.
Revenue (Henry Ford Village Inc. Project) VRDN
1.15% due 10/01/2023 (a) ............................. 9,035,000
38,735,000 Detroit, Michigan City School District (Merlots --
Series A-113) VRDN 1.15% due 05/01/2029 (a)(b) ....... 38,735,000
7,455,000 Detroit, Michigan Sewer Disposal Revenue VRDN
1.15% due 07/01/2028 (a) ............................. 7,455,000
2,260,000 Detroit, Michigan Sewer Disposal Revenue (Merlot --
Series B-41) VRDN 1.15% due 07/01/2026 (a)(b) ........ 2,260,000
25,740,000 Eastern Michigan University Revenue DDN 1.10%
due 06/01/2027 (a) ................................... 25,740,000
11,000,000 Michigan Municipal (Series B-1) BAN 2.00%
due 08/20/2004 ....................................... 11,032,360
31,000,000 Michigan Municipal (Series B-2) BAN 2.00%
due 08/23/2004 ....................................... 31,092,708
See Notes to Financial Statements.
70
- ----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ----------------------------------------------------------------------------------------------------
Michigan $ 15,850,000 Michigan State Higher Educational Facilities
(continued) Authority Revenue (Ave Maria School of Law
Project) VRDN 1.15% due 08/01/2026 (a) .......... $15,850,000
2,855,000 Michigan State Higher Educational Facilities
Authority Revenue (Davenport University Project)
VRDN 1.11% due 08/01/2027 (a) ................... 2,855,000
12,995,000 Michigan State Hospital Finance Authority Revenue
(Merlots -- Series K) VRDN 1.15%
due 11/15/2023 (a) .............................. 12,995,000
3,705,000 Michigan State Hospital Finance Authority Revenue
(Chelsea Community Hospital) VRDN 1.13%
due 05/15/2031 (a) .............................. 3,705,000
15,000,000 Michigan State Hospital Finance Authority Revenue
(Crittenton -- Series A) VRDN 1.12%
due 03/01/2030 (a) .............................. 15,000,000
4,230,000 Michigan State Strategic Fund Limited Obligation
Revenue (Weller Truck Parts Project) VRDN 1.25%
due 10/01/2029 (a) .............................. 4,230,000
3,900,000 Michigan State Strategic Fund Limited Obligation
Revenue (AVL North America Inc. Project) VRDN
1.30% due 04/01/2011 (a) ........................ 3,900,000
6,900,000 Michigan State Strategic Fund Limited Obligation
Revenue (Sur-Flo Plastics Inc. Project) VRDN
1.25% due 08/01/2025 (a) ........................ 6,900,000
2,800,000 Michigan State Strategic Fund Limited Obligation
Revenue (WE Upjohn Institute Project) VRDN
1.11% due 06/01/2012 (a) ........................ 2,800,000
19,200,000 Michigan State Strategic Fund Limited Obligation
Revenue (Detroit Symphony -- Series A) DDN
1.10% due 06/01/2031 (a) ........................ 19,200,000
Michigan State Building Authority Revenue
(Series 3) CP:
53,600,000 0.98% due 06/10/2004 ............................ 53,600,000
19,415,000 1.07% due 06/10/2004 ............................ 19,415,000
See Notes to Financial Statements.
71
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Michigan $ 7,600,000 Municipal Securities Trust Certificates (Class A --
(continued) Series 2001-166 Detroit Michigan Sewer Disposal
Revenue) VRDN 1.13% due 12/15/2021 (a)(b) .............. $ 7,600,000
16,650,000 Northern Michigan University Revenue DDN 1.10%
due 06/01/2031 (a) ..................................... 16,650,000
4,520,000 Oakland County, Michigan Economic Development
Corp. Limited Obligation Revenue (Su Dan Co.
Project) VRDN 1.25% due 07/01/2024 (a) ................. 4,520,000
9,555,000 Oakland County, Michigan Economic Development
Corp. Limited Obligation Revenue (Pontiac Vision
Schools Project) VRDN 1.15% due 08/01/2020 (a) ......... 9,555,000
- --------------------------------------------------------------------------------------------------------
Minnesota -- 11,000,000 Dakota County, Minnesota Community Development
1.2% Agency M/F Housing Revenue (Regatta Commons
Project -- Series A) DDN 1.20% due 01/01/2038 (a) ...... 11,000,000
10,000,000 Dakota County, Minnesota Community Development
Agency M/F Housing Revenue (Brentwood Hills
Apartments Project -- Series A) DDN 1.20%
due 09/01/2038 (a) ..................................... 10,000,000
10,000,000 Dakota County, Minnesota Community Development
Agency S/F Housing FXRDN 1.05% due
08/01/2004 ............................................. 10,000,000
18,140,000 Duluth, Minnesota EDA Health Care Facilities
Revenue (Floaters -- Series 895) VRDN 1.15%
due 02/15/2020 (a)(b) .................................. 18,140,000
2,800,000 Hennepin County, Minnesota Housing and
Redevelopment Authority M/F Revenue
(Stone Arch Apartments Project) VRDN 1.14%
due 04/15/2035 (a) ..................................... 2,800,000
14,000,000 Minnesota Rural Water Finance Authority (Public
Project -- Series B) BAN 2.00% due 10/15/2004 .......... 14,057,012
Rochester, Minnesota Health Care Facilities Revenue
(Mayo Foundation) CP:
24,800,000 (Series A) 0.98% due 05/05/2004 ........................ 24,800,000
15,000,000 (Series A) 0.96% due 05/11/2004 ........................ 15,000,000
10,950,000 (Series B) 0.96% due 05/11/2004 ........................ 10,950,000
See Notes to Financial Statements.
72
- -----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------
Minnesota $ 18,510,000 University of Minnesota (Series A) VRDN 1.12% due
(continued) 01/01/2034 (a) ......................................... $18,510,000
- -----------------------------------------------------------------------------------------------------------
Mississippi -- 10,000,000 Mississippi Business Finance Corp. Solid Waste
0.8% Disposal Revenue (Mississippi Power Co. Project)
DDN 1.20% due 05/01/2028 (a) ........................... 10,000,000
12,500,000 Mississippi Home Corp. Lease Purchase Revenue
VRDN 1.19% due 10/01/2007 (a) .......................... 12,500,000
32,992,000 Mississippi Home Corp. S/F Revenue (Floaters --
Series 714) VRDN 1.22% due 10/03/2005 (a)(b) ........... 32,992,000
37,388,000 Mississippi State Hospital Equipment & Facilities
Authority Revenue (North Mississippi Health
Services -- Series 1) CP 1.00% due 07/13/2004 .......... 37,388,000
- -----------------------------------------------------------------------------------------------------------
Missouri -- 5,000,000 Berkeley, Missouri IDA Revenue (Wetterau Project)
2.4% VRDN 1.10% due 07/01/2008 (a) .......................... 5,000,000
3,600,000 Cabool, Missouri IDA IDR (Ameriduct Worldwide
Inc. Project) VRDN 1.33% due 05/01/2010 (a) ............ 3,600,000
12,325,000 Kansas City, Missouri IDA Revenue (Ewing Marion
Kauffman) DDN 1.10% due 04/01/2027 (a) ................. 12,325,000
Lees Summit, Missouri M/F Housing Revenue
(Affordable Housing Acquisition) VRDN:
14,455,000 (Series A) 1.44% due 07/01/2046 (a) .................... 14,455,000
14,400,000 (Series B) 1.44% due 07/01/2046 (a) .................... 14,400,000
12,600,000 Missouri State Development Finance Board Lease
Revenue (Missouri Associate Municipal Utilities
Lease) DDN 1.15% due 06/01/2033 (a) .................... 12,600,000
26,550,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (Bethesda Health Group --
Series A) DDN 1.15% due 08/01/2031 (a) ................. 26,550,000
Missouri State Health & Higher Educational Facilities
Authority Revenue (Pooled Hospital Loan Program)
VRDN:
9,800,000 (Series B) 1.22% due 08/01/2029 (a) .................... 9,800,000
4,065,000 (Series C) 1.22% due 08/01/2029 (a) .................... 4,065,000
See Notes to Financial Statements.
73
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Missouri $ 25,900,000 Missouri State Health & Higher Educational Facilities
(continued) Authority Revenue (Christian Brothers -- Series A)
DDN 1.15% due 10/01/2032 (a) ........................ $25,900,000
19,265,000 Missouri State Health & Higher Educational Facilities
Authority Revenue (Louis University -- Series A)
DDN 1.15% due 10/01/2016 (a) ........................ 19,265,000
6,000,000 Missouri State Health & Educational Facilities
Authority (School District Advance Funding
Program) FXRDN 1.15% due 10/29/2004 ................. 6,000,000
9,000,000 Missouri State Health & Educational Facilities
Authority (School District Advance Funding
Program -- Series J) FXRDN 1.15%
due 10/29/2004 ...................................... 9,000,000
7,000,000 Missouri State Health & Educational Facilities
Authority (School District Advance Funding
Program -- Saint Louis City School -- Series O)
FXRDN 1.18% due 10/29/2004 .......................... 7,000,000
10,895,000 Missouri State Health & Educational Facilities
Authority Revenue (Saint Louis University --
Series B) DDN 1.15% due 10/01/2024 (a) .............. 10,895,000
7,785,000 Missouri State Health & Educational Facilities
Authority Revenue (Ranken Tech College) DDN
1.15% due 11/15/2017 (a) ............................ 7,785,000
18,280,000 Missouri State Health & Educational Facilities
Authority Revenue (Rockhurst University) DDN
1.10% due 11/01/2032 (a) ............................ 18,280,000
5,400,000 Missouri State Health & Educational Facilities
Authority Revenue (De Smet Jesuit High School)
DDN 1.15% due 11/01/2027 (a) ........................ 5,400,000
32,100,000 Missouri Higher Educational Loan Authority
(Student Loan Revenue -- Series B) VRDN 1.13%
due 06/01/2020 (a) .................................. 32,100,000
4,300,000 Saint Charles County, Missouri IDA M/F Revenue
(Peine Lakes Apartments Project) VRDN 1.16%
due 02/01/2039 (a) .................................. 4,300,000
See Notes to Financial Statements.
74
- -----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------
Missouri Saint Louis County, Missouri IDA M/F Housing
(continued) Revenue (Metro Lofts Apartments) VRDN:
$ 13,250,000 (Series A) 1.13% due 03/15/2036 (a) .................. $13,250,000
4,050,000 (Series C) 1.13% due 09/15/2036 (a) ................... 4,050,000
1,235,000 Sikeston, Missouri IDA Revenue (Heritage American
Homes LP/North Ridge Homes Inc. Project) VRDN
1.27% due 07/01/2009 (a) .............................. 1,235,000
- -----------------------------------------------------------------------------------------------------------
Montana -- 11,150,000 Helena, Montana Higher Educational Revenue
0.2% (Carroll College Campus Housing) DDN 1.15%
due 10/01/2032 (a) .................................... 11,150,000
9,250,000 Montana State Board Investment Municipal Finance
FXRDN 1.20% due 03/01/2005 ............................ 9,250,000
- -----------------------------------------------------------------------------------------------------------
Nebraska -- 40,000,000 American Public Energy Agency Nebraska Gas Supply
0.9% Revenue (National Public Gas Agency Project --
Series A) VRDN 1.12% due 02/01/2014 (a) ............... 40,000,000
23,000,000 Lincoln, Nebraska Electric System Revenue CP 0.95%
due 05/06/2004 ........................................ 23,000,000
19,000,000 Nebraska Public Power District Revenue CP 1.07%
due 08/09/2004 ........................................ 19,000,000
3,235,000 Nebraska Public Power District Eagle 2004-0014
VRDN 1.15% due 01/01/2035 ............................. 3,235,000
18,600,000 Omaha Public Power District Nebraska Electric
Revenue CP 0.98% due 05/03/2004 ....................... 18,600,000
- -----------------------------------------------------------------------------------------------------------
Nevada -- 1.0% 19,400,000 Clark County, Nevada IDR (Nevada Cogeneration I
Project) DDN 1.20% due 11/01/2020 (a) ................. 19,400,000
5,980,000 Clark County, Nevada (ROCS RR -- Series II-R
1035) VRDN 1.15% due 06/01/2021 (a)(b) ................ 5,980,000
3,995,000 Clark County, Nevada (ROCS RR -- Series II-R
4012) VRDN 1.19% due 07/01/2023 (a)(b) ................ 3,995,000
5,900,000 Clark County, Nevada School District (Merlots --
Series B02) VRDN 1.15% due 06/15/2019 (a)(b) .......... 5,900,000
3,470,000 Clark County, Nevada School District (Putters --
Series 398) VRDN 1.13% due 12/15/2011 (a)(b) .......... 3,470,000
See Notes to Financial Statements.
75
- -----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------
Nevada $ 11,290,000 Eagle Tax-Exempt Trust -- Clark County, Nevada
(continued) School District (Series 962804) VRDN 1.15%
due 06/15/2015 (a)(b) .................................. $11,290,000
6,000,000 Henderson, Nevada Public Housing Revenue (Pueblo
II -- Series B) VRDN 1.19% due 08/01/2026 (a) .......... 6,000,000
9,990,000 Las Vegas Valley, Nevada Water District (Merlots --
B-10) VRDN 1.15% due 06/01/2024 (a)(b) ................. 9,990,000
29,000,000 Las Vegas Valley, Nevada Water District CP 1.07%
due 05/12/2004 ......................................... 29,000,000
16,855,000 Truckee Meadows, Nevada Water Authority Revenue
(Municipal Security Trust Receipts -- Series SGA
137) VRDN 1.13% due 07/01/2030 (a)(b) .................. 16,855,000
- -----------------------------------------------------------------------------------------------------------
New 8,860,000 New Hampshire Health & Educational Facilities
Hampshire -- Authority Revenue (Riverwoods at Exeter) VRDN
1.5% 1.13% due 03/01/2034 (a) ............................... 8,860,000
11,000,000 New Hampshire Health & Educational Facilities
Authority Revenue (Floaters -- Series 866) VRDN
1.15% due 08/15/2021 (a)(b) ............................ 11,000,000
12,125,000 New Hampshire Higher Educational & Health
Facilities Authority Revenue (VHA New England
Inc. -- Series G) VRDN 1.12% due 12/01/2025 (a) 12,125,000
5,475,000 New Hampshire Higher Educational & Health
Facilities Authority Revenue (Floater -- Series 772)
VRDN 1.15% due 01/10/2017 (a)(b) ....................... 5,475,000
9,890,000 New Hampshire Higher Educational & Health
Facilities Authority Revenue (Wentworth Douglass
Hospital Radianassurance) DDN 1.20%
due 01/01/2031 (a) ..................................... 9,890,000
New Hampshire State Business Finance Authority
PCR (Nepco) CP:
21,000,000 1.03% due 05/04/2004 ................................... 21,000,000
35,850,000 1.03% due 05/19/2004 ................................... 35,850,000
25,000,000 1.15% due 07/07/2004 ................................... 25,000,000
See Notes to Financial Statements.
76
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
New Hampshire $ 20,000,000 New Hampshire State Business Finance Authority
(continued) Solid Waste Disposal Revenue (Waste Management
Inc. Project) DDN 1.14% due 05/01/2027 (a) .......... $20,000,000
3,600,000 New Hampshire State Business Finance Authority
Industrial Facilities Revenue (Wiggins Airways Inc.)
VRDN 1.15% due 12/01/2033 (a) ....................... 3,600,000
2,125,000 New Hampshire State Business Finance Authority
Industrial Facilities Revenue (Nim-Cor Inc.) VRDN
1.15% due 11/01/2009 (a) ............................ 2,125,000
2,400,000 New Hampshire State Business Finance Authority
Industrial Facilities Revenue (JMT Properties LLC)
VRDN 1.35% due 07/01/2018 (a) ....................... 2,400,000
2,850,000 New Hampshire State Business Finance Authority
Revenue (Montgomery Wire Corp.) VRDN 1.15%
due 02/01/2014 (a) .................................. 2,850,000
- --------------------------------------------------------------------------------------------------------
New Mexico -- 9,479,283 New Mexico Mortgage Finance Authority S/F
0.5% FXRDN 1.09% due 03/01/2005 .......................... 9,479,283
50,000,000 New Mexico Floating Rate (Trust Receipts -- Series
03) VRDN 1.14% due 06/30/2004 (a)(b) ................ 50,000,000
- --------------------------------------------------------------------------------------------------------
New York -- 15,000,000 Binghamton, New York BAN 2.00% due 09/24/2004.......... 15,053,852
3.7% 10,894,000 Clymer, New York Central School District (Formerly
Clymer Harmony & French Central School District)
BAN 1.40% due 06/25/2004 ............................ 10,898,990
5,500,000 Connetquot, New York Central School District BAN
2.00% due 01/27/2005 ................................ 5,534,614
15,000,000 Edgemont, New York Unified Free School District
(Greenburgh) BAN 1.50% due 08/20/2004 ............... 15,020,254
7,958,000 Fort Ann, New York Central School District BAN
1.50% due 06/30/2004 ................................ 7,963,808
4,127,000 Fort Ann, New York Central School District BAN
1.50% due 08/06/2004 ................................ 4,131,870
8,000,000 Herricks, New York School District BAN 2.00%
due 12/02/2004 ...................................... 8,038,536
10,000,000 Hilton, New York Central School District BAN
1.50% due 09/02/2004 ................................ 10,015,076
See Notes to Financial Statements.
77
- -----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------
New York $ 5,000,000 Honeoye Fall Lima, New York Central School District
(continued) BAN 2.00% due 09/23/2004 ............................ $ 5,017,619
3,010,261 Horseheads, New York Central School District BAN
1.75% due 06/22/2004 ................................ 3,013,015
12,000,000 Kenmore-Tonawanda, New York Unified Free School
District BAN 2.00% due 10/01/2004 ................... 12,045,623
9,285,000 Long Island Power Authority, New York Electric
System Revenue (Floaters -- Series 822) VRDN
1.14% due 09/01/2029 (a)(b) ......................... 9,285,000
6,000,000 Longwood Central School District (Suffolk County,
New York) TAN 1.75% due 06/30/2004 .................. 6,006,970
61,030,000 Metropolitan Transportation Authority, New York
Revenue (Floaters -- Series 823-D) VRDN 1.12%
due 11/15/2023 (a)(b) ............................... 61,030,000
35,000,000 New York, New York (ROCS RR II 251) VRDN
1.16% due 12/15/2019 (a)(b) ......................... 35,000,000
17,000,000 New York, New York City Municipal Water Finance
Authority (Water & Sewer System Revenue --
Series 6) CP 1.06% due 07/15/2004 ................... 17,000,000
33,000,000 New York, New York City Municipal Water Finance
Authority (Series 7) CP 1.08% due 07/15/04 .......... 33,000,000
14,660,000 Otego-Unadilla, New York Central School District
(Formerly Otego Oneonta) BAN 1.75%
due 06/30/2004 ...................................... 14,676,677
16,900,000 Patchogue-Medford, New York Unified Free School
District TAN 1.50% due 06/24/2004 ................... 16,912,327
5,000,000 Phelps-Clifton Spring, New York Central School
District BAN 2.00% due 06/18/2004 ................... 5,005,586
5,734,381 Ravena Coeymans Selkirk, New York Central School
District BAN 2.00% due 06/18/2004 ................... 5,741,309
17,000,000 Rochester, New York (Series III) RAN 2.00%
due 06/30/2004 ...................................... 17,025,155
20,000,000 Solvay, New York Unified Free School District BAN
1.40% due 07/20/2004 ................................ 20,017,304
55,000,000 Suffolk County, New York (Series I) TAN 2.00%
due 08/12/2004 ...................................... 55,150,380
See Notes to Financial Statements.
78
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
New York $ 8,500,000 Wantagh, New York Unified Free School District BAN
(continued) 1.75% due 09/10/2004 .............................. $ 8,518,179
7,500,000 Weedsport, New York Central School District BAN
1.75% due 07/30/2004 ............................... 7,512,797
4,000,000 West Islip, New York Unified Free School District
TAN 1.50% due 06/30/2004 ........................... 4,003,252
- ---------------------------------------------------------------------------------------------------------
North 14,000,000 Municipal Securities Trust Certificates (Class A --
Carolina -- Series 2001-125) DDN 1.12% 07/23/2015 (a) .......... 14,000,000
0.9% 20,000,000 North Carolina Housing Finance Agency (Home
Ownership -- Series 17-C) VRDN 1.13%
due 07/01/2033 (a) ................................. 20,000,000
21,795,000 North Carolina Medical Care Community Retirement
Revenue (Adult Community Services -- Series B)
DDN 1.23% due 11/15/2009 (a) ....................... 21,795,000
24,805,000 North Carolina Medical Care Community Health
Care Facilities Revenue (Carol Woods Project) DDN
1.10% due 04/01/2031 (a) ........................... 24,805,000
18,000,000 North Carolina Medical Care Community Health
Care Facilities Revenue (Friends Home) VRDN
1.10% due 09/01/2033 (a) ........................... 18,000,000
- ---------------------------------------------------------------------------------------------------------
North Dakota -- 9,000,000 North Dakota Rural Water Finance Corp. Public
0.4% Projects BAN 2.00% due 10/15/2004 .................. 9,033,360
33,255,000 Ward County, North Dakota Health Care Facilities
Revenue (Trinity Obligation Group -- Series A)
DDN 1.15% due 07/01/2029 (a) ....................... 33,255,000
- ---------------------------------------------------------------------------------------------------------
Ohio -- 5.1% 8,000,000 ABN-AMRO Muni Tops -- Cincinnati Ohio City
School District (Series 2003-34) VRDN 1.16%
due 12/01/2011 (a)(b) .............................. 8,000,000
5,035,000 ABN-AMRO Muni Tops -- University of Cincinnati
Ohio General Receipts (Series 2004-04) VRDN
1.10% due 03/09/2005 (a)(b) ........................ 5,035,000
9,755,000 Akron, Ohio BAN 2.00% due 11/04/2004 ................. 9,801,759
8,500,000 Chillicothe, Ohio City School District BAN 2.00%
due 09/30/2004 ..................................... 8,526,257
See Notes to Financial Statements.
79
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Ohio $10,000,000 Cincinnati, Ohio City School District BAN 1.75%
(continued) due 09/10/2004 .................................... $10,018,878
9,600,000 Clinton County, Ohio Hospital Revenue (Capital
Asset Incorporate Pooled Loan) VRDN 1.22%
due 11/01/2020 (a) ................................ 9,600,000
10,000,000 Clinton County, Ohio Hospital Revenue (Series D-1)
VRDN 1.22% due 12/01/2015 (a) ..................... 10,000,000
5,924,000 Clipper Tax-Exempt Trust -- Ohio Housing Finance
Agency (Series 2000-4) VRDN 1.21%
due 06/01/2005 (a) ................................ 5,924,000
10,000,000 Columbus, Ohio Regional Apartment Authority
Revenue (Series A) VRDN 1.11%
due 01/01/2030 (a) ................................ 10,000,000
4,300,000 Cuyahoga County, Ohio Civic Facilities Revenue
Center for Families & Children VRDN 1.17%
due 06/01/2024 (a) ................................ 4,300,000
10,185,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Jennings Center) VRDN 1.16%
due 11/01/2023 (a) ................................ 10,185,000
7,815,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Metrohealth System Project) VRDN 1.13%
due 03/01/2033 (a) ................................ 7,815,000
5,000,000 Cuyahoga County, Ohio Hospital Facilities Revenue
(Sisters of Charity Health System) VRDN 1.13%
due 11/01/2030 (a) ................................ 5,000,000
2,165,000 Cuyahoga County, Ohio M/F Revenue (St. Vitus
Village Apartments Project) VRDN 1.17%
due 06/01/2022 (a) ................................ 2,165,000
4,655,000 Deerfield Township, Ohio (Tax Increment Revenue --
Series B) VRDN 1.13% due 12/01/2022 (a) ........... 4,655,000
3,500,000 Eagle Tax-Exempt Trust -- Ohio Water Development
Authority (Ohio Edison) VRDN 1.15%
due 07/01/2015 (a)(b) ............................. 3,500,000
4,800,000 Eagle Tax-Exempt Trust -- Ohio Edison (Series
953509) VRDN 1.15% due 07/01/2015 (a)(b) .......... 4,800,000
See Notes to Financial Statements.
80
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Ohio $15,000,000 Eagle Tax-Exempt Trust -- Cleveland Water (Series
(continued) 983501) VRDN 1.15% due 01/01/2025 (a)(b) .......... $15,000,000
22,065,000 Eagle Tax-Exempt Trust -- Ohio State Turnpike
Revenue (Series 983502) VRDN 1.15%
due 02/15/2020 (a)(b) ............................. 22,065,000
9,360,000 Franklin County, Ohio Hospital Revenue (Children's
Hospital) VRDN 1.10% due 11/01/2025 (a) ........... 9,360,000
10,305,000 Franklin County, Ohio Hospital Revenue (Children's
Hospital Project Ambac) VRDN 1.10%
due 11/01/2033 (a) ................................ 10,305,000
4,365,000 Franklin County, Ohio M/F Revenue (Community
Housing Network) VRDN 1.16%
due 03/01/2027 (a) ................................ 4,365,000
7,565,000 Geauga County, Ohio Revenue (Sisters of Notre Dame
Project) VRDN 1.16% due 08/01/2016 (a) ............ 7,565,000
13,750,000 Hamilton County, Ohio Hospital Facilities Revenue
(Children's Hospital Medical Center) VRDN 1.10%
due 05/15/2017 (a) ................................ 13,750,000
10,800,000 Hamilton County, Ohio Parking System Revenue
VRDN 1.10% due 12/01/2026 (a) ..................... 10,800,000
20,305,000 Hamilton County, Ohio Student Housing Revenue
(Stratford Heights Project) VRDN 1.17%
due 08/01/2036 (a) ................................ 20,305,000
7,500,000 Huron County, Ohio Hospital Facilities Revenue
(Norwalk Area Health System) VRDN 1.10%
due 12/01/2027 (a) ................................ 7,500,000
5,080,000 Licking County, Ohio IDR (Renosol Corp. Project)
VRDN 1.25% due 06/01/2030 (a) ..................... 5,080,000
9,500,000 Licking Heights, Ohio Local School District BAN
2.00% due 08/12/2004 .............................. 9,523,771
3,800,000 Lucas-Beacon Place Housing Development Corp. M/F
Revenue (Beacon Place Apartments Project)
FXRDN 1.70% due 09/15/2004 ........................ 3,800,000
1,990,000 Mentor, Ohio IDR (Risch Investments/Roll-Kraft
Project) VRDN 1.28% due 08/01/2017 (a) ............ 1,990,000
See Notes to Financial Statements.
81
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Ohio $11,830,000 Middleburg Heights, Ohio Hospital Revenue
(continued) (Southwest General Health) VRDN 1.13%
due 08/15/2022 (a) ................................ $11,830,000
10,000,000 Middletown, Ohio City School District BAN 1.75%
due 06/10/2004 .................................... 10,006,514
7,872,000 Mohawk, Ohio Local School District BAN 1.97%
due 07/29/2004 .................................... 7,886,701
2,600,000 Montgomery County, Ohio EDR (Benjamin & Marian
Project -- Series A) VRDN 1.16%
due 04/01/2011 (a) ................................ 2,600,000
Montgomery County, Ohio Health Revenue (Miami
Valley Hospital -- Series 1998-B) CP:
50,000,000 1.00% due 05/03/2004 .............................. 50,000,000
50,000,000 1.00% due 05/06/2004 .............................. 50,000,000
38,500,000 Montgomery County, Ohio Health Revenue (Miami
Valley Hospital -- Series A) DDN 1.10%
due 11/15/2022 (a) ................................ 38,500,000
12,000,000 Municipal Securities Trust Certificates (Class A --
Series 104) VRDN 1.13% due 11/14/2017 (a) ......... 12,000,000
1,300,000 Ohio State Air Quality Development Authority
Revenue (Cincinnati Gas & Electric -- Series B)
VRDN 1.28% due 09/01/2030 (a) ..................... 1,300,000
7,320,000 Ohio State EDR (Goodwill Industrial Miami Valley
Project) VRDN 1.13% due 06/01/2023 (a) ............ 7,320,000
4,000,000 Ohio State Higher Educational Facilities Revenue
(Ashland University Project) VRDN 1.15%
due 09/01/2024 (a) ................................ 4,000,000
2,095,000 Ottawa County, Ohio IDR (Adrian Sand & Stone Inc.
Project) VRDN 1.21% due 10/01/2008 (a) ............ 2,095,000
8,350,000 Port Authority of Columbiana County, Ohio IDR
(GEI of Columbiana Inc. Project) VRDN 1.21%
due 06/01/2022 (a) ................................ 8,350,000
6,680,000 Richland County, Ohio Revenue (Mansfield Area
YMCA Project) VRDN 1.16% due 11/01/2019 (a) ....... 6,680,000
9,500,000 Rittman, Ohio School District BAN 1.55%
due 07/29/2004 .................................... 9,511,608
See Notes to Financial Statements.
82
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Ohio (continued) $ 9,175,000 Salem, Ohio Civic Facilities Revenue (Salem
Community Center Inc. Project) VRDN 1.16%
due 06/01/2027 (a) ................................ $9,175,000
South Lebanon Villiage, Ohio M/F Revenue
(Housing -- Pedcor Invests -- Cedars) VRDN
7,700,000 (Series A) 1.25% due 09/01/2038 (a) ............... 7,700,000
1,100,000 (Series B) 1.20% due 09/01/2038 (a) ............... 1,100,000
6,810,000 Spencerville, Ohio Local School District BAN 1.83%
due 08/26/2004 .................................... 6,823,621
6,300,000 Springboro, Ohio Community City School District
BAN 1.75% due 10/12/2004 .......................... 6,317,618
36,800,000 University of Toledo, Ohio General Receipts DDN
1.10% due 06/01/2032 (a) .......................... 36,800,000
4,490,000 Willoughby, Ohio IDR (Kennedy Group Inc. Project)
VRDN 1.21% due 09/01/2018 (a) ..................... 4,490,000
1,620,000 Wood County, Ohio IDR (GHT Property
Management LLC Project) VRDN 1.27% due
08/01/2019 (a) .................................... 1,620,000
2,385,000 Wood County, Ohio IDR (TL INDS & AMPP Inc.
Project) VRDN 1.21% due 05/01/2011 (a) ............ 2,385,000
- ---------------------------------------------------------------------------------------------------------
Oklahoma -- 15,158,944 Comanche County, Oklahoma Home Finance S/F
1.7% Revenue Notes (Series A) FXRDN 1.14%
due 04/01/2005 .................................... 15,158,944
3,750,000 Comanche County, Oklahoma Home Finance S/F
Revenue Notes (Series A) FXRDN 1.36%
due 05/02/2005 .................................... 3,750,000
7,500,000 Grand Gateway Home Finance Authority S/F
Mortgage Revenue (Series A) FXRDN 1.13%
due 01/03/2005 .................................... 7,500,000
53,800,000 Oklahoma County, Oklahoma Finance Authority
Revenue (Oklahoma County Housing Preservation)
VRDN 1.18% due 01/01/2033 (a) ..................... 53,800,000
30,540,000 Oklahoma Development Finance Authority Revenue
(Inverness Village -- Continuing Care Retirement --
Series C) DDN 1.15% due 02/01/2012 (a) ............ 30,540,000
See Notes to Financial Statements.
83
- ------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ------------------------------------------------------------------------------------------------------
Oklahoma $ 5,000,000 Oklahoma Development Finance Authority Revenue
(continued) (ConocoPhillips Co. Project) FXRDN 1.35%
due 12/01/2004 .................................... $ 5,000,000
40,055,950 Oklahoma County, Oklahoma Home Finance
Authority S/F Mortgage Revenue FXRDN 1.15%
due 05/03/2004 .................................... 40,055,950
8,212,000 Oklahoma Housing Finance Agency S/F Revenue
FXRDN 1.09% due 08/31/2004 ........................ 8,212,000
Tulsa County, Oklahoma Home Finance Authority S/F
Mortgage Revenue FXRDN:
13,180,000 (Series A) 1.14% due 04/01/2005 ................... 13,180,000
15,000,000 (Series G) 1.11% due 12/01/2004 ................... 15,000,000
- ------------------------------------------------------------------------------------------------------
Oregon -- 1.6% 10,000,000 ABN-AMRO Muni Tops -- Portland, Oregon (Series
2001-4) VRDN 1.16% due 06/01/2009 (a)(b) .......... 10,000,000
4,646,500 Clackamas County, Oregon Health Facilities
Authority Hospital Revenue (Floaters -- Series 689)
VRDN 1.19% due 12/25/2005 (a)(b) .................. 4,646,500
5,700,000 Multnomah County, Oregon Hospital Facilities
Authority Revenue (Holladay Park Plaza Revenue
Project) DDN 1.12% due 11/15/2033 (a) ............. 5,700,000
5,030,000 Oregon State (ROCS RR II R 6001) VRDN 1.15%
due 08/01/2022 (a)(b) ............................. 5,030,000
Oregon State EDR (Newsprint Co. Project) DDN:
21,900,000 (Series 197) 1.15% due 08/01/2025 (a) ............. 21,900,000
16,070,000 (Series 197) 1.15% due 12/01/2025 (a) ............. 16,070,000
18,600,000 (Series 202) 1.15% due 04/01/2026 (a) ............. 18,600,000
13,000,000 (Series 203) 1.15% due 12/01/2026 (a) ............. 13,000,000
5,410,000 Oregon State Health, Housing, Educational &
Cultural Facilities Authority (Assumption Village
Project -- Series A) VRDN 1.12% due
03/01/2033 (a) .................................... 5,410,000
Oregon State Health Sciences University Revenue
(Oshu Medical Group Project) VRDN:
15,000,000 (Series A) 1.11% due 07/01/2033 (a) ............... 15,000,000
24,000,000 (Series B) 1.11% due 07/01/2033 (a) ............... 24,000,000
See Notes to Financial Statements.
84
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
April 30, 2004
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Oregon $ 6,400,000 Oregon State Housing & Community Services
(continued) Revenue S/F (Mortgage Program -- Series D)
FXRDN 1.16% due 05/05/2005 ............................ $ 6,400,000
22,165,000 Portland, Oregon TAN 2.00% due 06/29/2004 ............... 22,198,467
7,750,000 Portland, Oregon EDR (Broadway Project -- Series A)
VRDN 1.12% due 04/01/2035 (a) ......................... 7,750,000
- --------------------------------------------------------------------------------------------------------
Pennsylvania -- 15,970,000 Allegheny County, Pennsylvania IDA Health &
3.3% Housing Facilities Revenue (Longwood -- Series B)
DDN 1.13% due 07/01/2027 (a) .......................... 15,970,000
6,600,000 Cumberland County, Pennsylvania Municipal
Authority Retirement Community Revenue (Wesley
Affiliated Services -- Series C) VRDN 1.09%
due 01/01/2037 (a) .................................... 6,600,000
43,005,000 Dauphin County, Pennsylvania General Authority
Revenue (School District Pooled Finance) VRDN
1.15% due 09/01/2032 (a) .............................. 43,005,000
47,000,000 Emmaus, Pennsylvania General Authority Revenue
(Loan Program -- Series A) VRDN 1.12%
due 03/01/2030 (a) .................................... 47,000,000
Emmaus, Pennsylvania General Authority Revenue
(Local Government Pool) VRDN:
15,000,000 (Series C-7) 1.11% due 03/01/2024 (a) ................. 15,000,000
10,000,000 (Series E-18) 1.11% due 03/01/2024 (a) ................ 10,000,000
8,970,000 Erie County, Pennsylvania Hospital Authority
Revenue (Floaters -- Series 820) VRDN 1.14%
due 07/01/2022 (a)(b) ................................. 8,970,000
26,900,000 Geisinger, Pennsylvania Health System Authority
Revenue DDN 1.09% due 08/01/2028 (a) .................. 26,900,000
19,300,000 Municipal Securities Trust Certificates -- Pennsylvania
State (Class A -- Series 110) DDN 1.13%
due 08/17/2010 (a) .................................... 19,300,000
9,610,000 New Garden, Pennsylvania General Authority
Municipal Revenue (Municipal Pooled Financing
Program -- Series I) VRDN 1.15%
due 11/01/2029 (a) .................................... 9,610,000
See Notes to Financial Statements.
85
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Pennsylvania $44,800,000 New Garden, Pennsylvania General Authority
(continued) Municipal Revenue (Municipal Pooled Financing
Program -- Series II) VRDN 1.15%
due 12/01/2033 (a) .................................... $44,800,000
6,400,000 Philadelphia, Pennsylvania Authority IDR (Girard
Estate Facilities Leasing) VRDN 1.08%
due 11/01/2031 (a) .................................... 6,400,000
60,000,000 Philadelphia, Pennsylvania TRAN 2.00%
due 06/30/2004 ........................................ 60,099,274
25,300,000 Philadelphia, Pennsylvania Hospital & Higher
Educational Authority Revenue (Wills Eye Hospital
Project) VRDN 1.08% due 11/01/2030 (a) ................ 25,300,000
9,364,500 Philadelphia, Pennsylvania School District (Floaters --
Series 496) VRDN 1.14% due 04/01/2027 (a)(b) .......... 9,364,500
19,000,000 Philadelphia, Pennsylvania Water & Wastewater
Revenue VRDN 1.09% due 06/15/2023 (a) ................. 19,000,000
- ---------------------------------------------------------------------------------------------------------
Puerto Rico -- 20,000,000 Puerto Rico, Commonwealth (Floaters -- Series 03)
0.2% VRDN 1.14% due 07/30/2004 (a) ......................... 20,000,000
- ---------------------------------------------------------------------------------------------------------
Rhode Island -- 24,600,000 Convention Center, Rhode Island Authority Revenue
0.7% (Series A) VRDN 1.08% due 05/15/2027 (a) .............. 24,600,000
15,100,000 Johnston, Rhode Island BAN 2.00% due 06/17/2004 ......... 15,113,397
3,400,000 Rhode Island State EDR (Immunex Rhode Island
Corp. Sewer Project) VRDN 1.15%
due 12/01/2023 (a) .................................... 3,400,000
7,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (La Salle Academy) VRDN 1.10%
due 07/01/2033 (a) .................................... 7,000,000
5,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (Jewish Services Agency) VRDN
1.09% due 12/01/2032 (a) .............................. 5,000,000
5,000,000 Rhode Island State Health & Educational Building
Corp. Revenue (Pennfield School) VRDN 1.10%
due 09/01/2034 (a) .................................... 5,000,000
See Notes to Financial Statements.
86
- ---------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------
Rhode Island $ 3,150,000 Rhode Island State Health & Educational Building
(continued) Corp. Revenue (Thundermist) VRDN 1.10%
due 02/01/2034 (a) .................................... $3,150,000
2,470,000 Rhode Island State Housing & Mortgage Finance M/F
Corp. (Smith Building Development Corp.) VRDN
1.10% due 12/01/2028 (a) .............................. 2,470,000
2,300,000 Rhode Island State Industrial Facilities Corporation
IDR (Capital Development Corp. Project) VRDN
1.00% due 11/01/2005 (a) .............................. 2,300,000
4,270,000 Rhode Island State Industrial Facilities Corporation
IDR (Hall Real Estate LLC Project) VRDN 1.15%
due 02/01/2021 (a) .................................... 4,270,000
1,050,000 Rhode Island State Industrial Facilities Corporation
IDR (Gardener Specialty -- Series A) VRDN 1.35%
due 05/01/2021 (a) .................................... 1,050,000
- ---------------------------------------------------------------------------------------------------------
South 4,100,000 Darington County, South Carolina IDR (Nucor Corp.
Carolina -- Project -- Series A) VRDN 1.16%
0.8% due 08/01/2029 (a) .................................... 4,100,000
5,280,000 Greenville Hospital System, South Carolina Hospital
Facilities Revenue (ROCS RR II-R 2025) VRDN
1.15% due 05/01/2019 (a)(b) ........................... 5,280,000
5,000,000 Rock Hill, South Carolina Utilities System Revenue
(Series B) VRDN 1.10% due 01/01/2033 (a) .............. 5,000,000
20,950,000 South Carolina EDA Health Facilities Revenue
(Episcopal Church Home) VRDN 1.19%
due 04/01/2027 (a) .................................... 20,950,000
6,250,000 South Carolina EDA EDR (Holcim US Inc. Project)
VRDN 1.25% due 12/01/2033 (a) ......................... 6,250,000
11,250,000 South Carolina EDA EDR (Giant Cement Holding
Inc.) VRDN 1.13% due 12/01/2022 (a) ................... 11,250,000
1,360,000 South Carolina EDA EDR (Parkway Products Inc.
Project) VRDN 1.18% due 11/01/2007 (a) ................ 1,360,000
4,695,000 South Carolina EDA EDR (Performance Friction
Corp. Project) VRDN 1.16% due 06/01/2012 (a) .......... 4,695,000
See Notes to Financial Statements.
87
- -------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------------------------
South Carolina $ 5,500,000 South Carolina EDA IDR (Core Materials Corp.
(continued) Project) VRDN 1.27% due 04/01/2013 (a) .............. $ 5,500,000
4,580,000 South Carolina State Public Service Authority Revenue
(ROCS RR II R 6007) VRDN 1.14% due
01/01/2022 (a)(b) ................................... 4,580,000
11,100,000 South Carolina Transportation Infrastructure Bank
Revenue Municipal Securities Trust (SGA 116)
DDN 1.13% due 10/01/2027 (a) ........................ 11,100,000
5,260,000 South Carolina Transportation Infrastructure Bank
Revenue (Putters -- Series 316) VRDN 1.13%
due 10/01/2027 (a) .................................. 5,260,000
- -------------------------------------------------------------------------------------------------------
South Dakota -- 41,000,000 South Dakota State Health & Educational Facilities
0.4% Authority Revenue (Rapid City Regional Hospital
MBIA) DDN 1.10% due 09/01/2021 (a) .................. 41,000,000
- -------------------------------------------------------------------------------------------------------
Tennessee -- Blount County, Tennessee Public Building Authority
6.3% (Local Government Public Improvement) DDN:
20,000,000 (Series A-1-A) 1.11% due 06/01/2031 (a) ............. 20,000,000
16,070,000 (Series A-1-B) 1.11% due 06/01/2022 (a) ............. 16,070,000
11,500,000 (Series A-1-C) 1.11% due 06/01/2017 (a) ............. 11,500,000
3,345,000 (Series A-1-D) 1.11% due 06/01/2025 (a) ............. 3,345,000
11,175,000 (Series A-2-A) 1.11% due 06/01/2030 (a) ............. 11,175,000
10,000,000 (Series A-2-B) 1.11% due 06/01/2025 (a) ............. 10,000,000
5,000,000 (Series A-2-C) 1.11% due 06/01/2021 (a) ............. 5,000,000
10,000,000 (Series A-2-D) 1.11% due 06/01/2026 (a) ............. 10,000,000
5,900,000 (Series A-4-A) 1.10% due 06/01/2032 (a) ............. 5,900,000
10,000,000 (Series A-5-A) 1.11% due 06/01/2030 (a) ............. 10,000,000
5,700,000 (Series A-5-B) 1.11% due 06/01/2028 (a) ............. 5,700,000
5,855,000 Jackson, Tennessee Energy Authority Gas System
Revenue VRDN 1.09% due 04/01/2027 (a) ............... 5,855,000
4,845,000 Jackson, Tennessee Energy Authority Water System
Revenue VRDN 1.09% due 12/01/2023 (a) ............... 4,845,000
19,775,000 Johnson County, Tennessee Municipal Securities Trust
(SGA 45) VRDN 1.13% due 05/01/2021 (a) .............. 19,775,000
See Notes to Financial Statements.
88
- -----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------
Tennessee $ 7,265,000 Knox County, Tennessee Health, Educational &
(continued) Housing Facilities Board Revenue (Cookeville
Regional Project -- Series A-2) VRDN 1.27%
due 10/01/2026 (a) ................................. $ 7,265,000
8,950,000 Knox County, Tennessee Health, Educational &
Housing Facilities Board Revenue (Laughlin
Memorial Hospital -- Series A-1) VRDN 1.27%
due 11/01/2024 (a) ................................. 8,950,000
7,800,000 Knox County, Tennessee Health, Educational &
Housing Facilities Board Revenue (Baptist Hospital
System Project) VRDN 1.27% due 04/01/2027 (a) ...... 7,800,000
8,000,000 Lewisburg, Tennessee Industrial Development Board
(Solid Waste Disposal Revenue Waste Management
Incorporated Project) VRDN 1.19%
due 07/01/2033 (a) ................................. 8,000,000
Memphis, Tennessee Health, Educational & Housing
Facilities Board Revenue (Not-For-Profit M/F
Project) VRDN:
40,000,000 1.18% due 07/01/2032 (a) ........................... 40,000,000
10,000,000 1.18% due 08/01/2032 (a) ........................... 10,000,000
10,015,000 Montgomery County, Tennessee Public Building
Authority Revenue (Tennessee County Loan Pool)
VRDN 1.10% due 09/01/2029 (a) ...................... 10,015,000
9,475,000 Montgomery County, Tennessee Public Building
Authority Revenue (Tennessee County Loan Pool)
DDN 1.11% due 04/01/2032 (a) ....................... 9,475,000
520,000 Nashville & Davidson County, Tennessee IDB
Revenue (Gibson Guitar Project) VRDN 1.15%
due 03/01/2011 (a) ................................. 520,000
9,670,000 Nashville & Davidson County, Tennessee IDB
Educational Facilities Revenue (David Lipscomb
University Project) VRDN 1.09%
due 02/01/2023 (a) ................................. 9,670,000
2,000,000 Nashville & Davidson County, Tennessee District
Energy System Revenue (ROCS RR II R 2072)
VRDN 1.15% due 10/01/2022 (a)(b) ................... 2,000,000
See Notes to Financial Statements.
89
- -----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------
Tennessee Sevier County, Tennessee Public Building Authority
(continued) (Local Government Public Improvement) DDN:
$ 11,100,000 (Series IV-1) 1.11% due 06/01/2023 (a) .............. $ 11,100,000
6,000,000 (Series IV-2) 1.11% due 06/01/2020 (a) .............. 6,000,000
8,000,000 (Series IV-3) 1.11% due 06/01/2025 (a) .............. 8,000,000
8,380,000 (Series IV-A-2) 1.11% due 06/01/2025 (a) ............ 8,380,000
9,000,000 (Series IV-A-3) 1.11% due 06/01/2020 (a) ............ 9,000,000
21,000,000 (Series IV-B-1) 1.11% due 06/01/2020 (a) ............ 21,000,000
10,000,000 (Series IV-B-2) 1.11% due 06/01/2019 (a) ............ 10,000,000
7,000,000 (Series IV-B-3) 1.11% due 06/01/2013 (a) ............ 7,000,000
6,000,000 (Series IV-B-4) 1.11% due 06/01/2025 (a) ............ 6,000,000
10,000,000 (Series IV-B-5) 1.11% due 06/01/2022 (a) ............ 10,000,000
6,320,000 (Series IV-B-6) 1.11% due 06/01/2020 (a) ............ 6,320,000
5,000,000 (Series IV-B-10) 1.11% due 06/01/2023 (a) ........... 5,000,000
4,570,000 (Series IV-B-11) 1.11% due 06/01/2025 (a) ........... 4,570,000
11,800,000 (Series IV-D-2) 1.11% due 06/01/2025 (a) ............ 11,800,000
6,020,000 (Series IV-E-2) 1.11% due 06/01/2021 (a) ............ 6,020,000
5,000,000 (Series IV-F-3) 1.11% due 06/01/2021 (a) ............ 5,000,000
10,000,000 (Series IV-G-1) 1.11% due 06/01/2026 (a) ............ 10,000,000
7,500,000 (Series IV-G-3) 1.11% due 06/01/2022 (a) ............ 7,500,000
9,200,000 (Series IV-H-1) 1.11% due 06/01/2025 (a) ............ 9,200,000
5,050,000 (Series IV-H-2) 1.11% due 06/01/2027 (a) ............ 5,050,000
10,000,000 (Series IV-I-1) 1.11% due 06/01/2032 (a) ............ 10,000,000
5,500,000 (Series IV-I-3) 1.11% due 06/01/2015 (a) ............ 5,500,000
18,000,000 (Series IV-J-1) 1.11% due 06/01/2028 (a) ............ 18,000,000
119,000,000 Shelby County, Tennessee (Series B) FXRDN 1.75%
due 01/10/2005 ...................................... 119,589,967
70,400,000 Shelby County, Tennessee Health Educational &
Housing Facilities Board Hospital Revenue (Baptist
Memorial Hospital) CP 1.01% due 05/06/2004 .......... 70,400,000
56,245,000 Tennessee Housing & Development Agency S/F
Mortgage Revenue FXRDN 0.89% due 06/10/2004. 56,242,203
- -----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
90
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Texas -- 13.3% $24,884,000 ABN-AMRO Muni Tops -- Texas A&M University
Revenue (Series 1999-5) VRDN 1.25%
due 09/08/2004 (a)(b) ................................. $24,884,000
15,750,000 ABN-AMRO Muni Tops -- Houston, Texas Airport
System (Series 1998-15) VRDN 1.23%
due 07/05/2006 (a)(b) ................................. 15,750,000
20,000,000 ABN-AMRO Muni Tops -- Dallas, Texas Waterworks
& Sewer Systems Revenue (Series 1998-19) VRDN
1.18% due 07/04/2007 (a)(b) ........................... 20,000,000
9,000,000 ABN-AMRO Muni Tops -- San Antonio, Texas
Electric & Gas Revenue (Series 1998-22) VRDN
1.18% due 01/02/2007 (a)(b) ........................... 9,000,000
9,510,000 ABN-AMRO Muni Tops -- Keller, Texas Independent
School District (Series 2001-26) VRDN 1.18%
due 07/01/2009 (a)(b) ................................. 9,510,000
22,452,000 Austin, Texas Utilities System Revenue (Series A) CP
0.97% due 08/02/2004 .................................. 22,452,000
Bell County, Texas Health Facilities Development
Corp. Revenue (Scott & White Member Hospital)
DDN:
20,660,000 (Series B-1) 1.10% due 08/15/2029 (a) ................. 20,660,000
28,100,000 (Series B-2) 1.10% due 08/15/2029 (a) ................. 28,100,000
24,580,000 (Series B-2) 1.07% due 08/15/2031 (a) ................. 24,580,000
11,825,000 Bexar County, Texas Revenue Floats CTFS (Series
454) VRDN 1.14% due 08/15/2008 (a)(b) ................. 11,825,000
Brazos River Authority Texas PCR VRDN:
35,000,000 (Series D-1) 1.16% due 05/01/2033 (a) ................. 35,000,000
20,000,000 (Series D-2) 1.16% due 05/01/2033 (a) ................. 20,000,000
20,000,000 Brazos River, Texas Harbor Navigator District (BASF
Corp. Project) VRDN 1.18% due 04/01/2037 (a) .......... 20,000,000
4,990,000 Cameron County, Texas Housing Finance Corp.
FXRDN 1.12% due 09/01/2004 ............................ 4,990,000
7,958,023 Cameron County, Texas Housing Finance Corp. S/F
Mortgage Revenue (Series A) FXRDN 1.12%
due 06/01/2004 ........................................ 7,958,002
See Notes to Financial Statements.
91
- --------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- --------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- --------------------------------------------------------------------------------------------------------
Texas $15,309,890 Central Texas Housing Finance Corp. S/F Mortgage
(continued) Revenue (Series A) FXRDN 1.13% due 07/01/2004 ...... $15,309,890
1,995,000 Cypress-Fairbanks, Texas Independent School District
(ROCS RR II R 4030) VRDN 1.15%
due 02/15/2025 (a) ................................. 1,995,000
20,000,000 Dallas Area Rapid Transit Authority CP 1.00%
due 06/10/2004 ..................................... 20,000,000
8,400,000 Dallas Fort Worth, Texas International Airport
Revenue VRDN 1.19% due 11/01/2032 (a) .............. 8,400,000
2,745,000 Dallas Fort Worth, Texas International Airport
Revenue (Floaters -- Series 824) VRDN 1.25%
due 11/01/2015 (a)(b) .............................. 2,745,000
5,035,000 Dallas Fort Worth, Texas International Airport
Revenue (Merlots -- Series A-13) VRDN 1.20%
due 11/01/2011 (a)(b) .............................. 5,035,000
13,350,000 Dickinson, Texas Independent School District
Municipal Securities Trust Receipts (SGA 94) DDN
1.13% due 02/15/2028 (a)(b) ........................ 13,350,000
6,000,000 Eagle Mountain & Saginaw, Texas School District
VRDN 1.12% due 08/01/2030 (a) ...................... 6,000,000
12,000,000 Eagle Tax-Exempt Trust -- Texas State Turnpike
Authority (Series 02-6004) VRDN 1.15%
due 08/15/2042 (a)(b) .............................. 12,000,000
1,880,000 Gulf Coast Waste Disposal Authority Texas
Environment Facilities Revenue (Waste Corp Texas
Project) VRDN 1.12% due 09/01/2022 (a) ............. 1,880,000
12,500,000 Gulf Coast Waste Disposal Authority Texas Solid
Waste Disposal Revenue (Air Products Project)
VRDN 1.16% due 03/01/2035 (a) ...................... 12,500,000
2,500,000 Gulf Coast Waste Disposal Authority Texas Solid
Waste Disposal Revenue (Waste Management --
Series A) VRDN 1.15% due 04/01/2019 (a) ............ 2,500,000
Harris County, Texas IDC Solid Waste Disposal
Revenue (Deer Park Project) DDN:
3,900,000 (Series A) 1.15% due 02/01/2023 (a) ................ 3,900,000
20,800,000 (Series 95-A) 1.15% due 03/01/2023 (a) ............. 20,800,000
See Notes to Financial Statements.
92
- -----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------
Texas $12,500,000 (Series 95-B) 1.15% due 03/01/2023 (a) ............ $12,500,000
(continued) 25,000,000 (Series 95-D) 1.15% due 03/01/2023 (a) ............ 25,000,000
15,600,000 (Series 15-C) 1.15% due 03/01/2023 (a) ............ 15,600,000
4,000,000 Harris County, Texas GO (Eagle -- Series 2002-6012)
VRDN 1.15% due 08/15/2030 (a) ..................... 4,000,000
44,500,000 Harris County, Texas Health Facilities Development
Corp. Hospital Revenue (Texas Children's Hospital
-- Series B-1) VRDN 1.11%
due 10/01/2029 (a) ................................ 44,500,000
Houston, Texas (Series A) CP:
25,000,000 0.95% due 05/20/2004 .............................. 25,000,000
25,000,000 0.95% due 05/25/2004 .............................. 25,000,000
39,800,000 Houston, Texas Airport System Revenue (Series
2000-A) CP 1.08% due 06/01/2004 ................... 39,800,000
20,500,000 Houston, Texas Water & Sewer System Revenue
(Series A) CP 0.99% due 05/25/2004 ................ 20,500,000
18,535,000 Houston, Texas Water & Sewer System Revenue
(Merlots -- Series A-128) VRDN 1.15%
due 12/01/2029 (a) ................................ 18,535,000
6,200,000 Jewett Economic Development Corp. Texas IDR
(Nucor Corp. Project) VRDN 1.16%
due 08/01/2038 (a) ................................ 6,200,000
28,500,000 Keller, Texas Independent School District Municipal
Securities Trust Receipts (SGA 111) DDN 1.13%
due 08/15/2030 (a)(b) ............................. 28,500,000
8,787,602 Laredo, Texas Housing Finance Corp. S/F Mortgage
Revenue FXRDN 1.12% due 05/03/2004 ................ 8,787,602
1,600,000 Longview Texas Industrial Corp. Revenue (Collins
Industries Inc. Project) VRDN 1.20%
due 04/01/2009 (a) ................................ 1,600,000
3,800,000 Mesquite, Texas IDR (Morrison Products) VRDN
1.17% due 01/10/2010 (a) .......................... 3,800,000
4,700,000 Middle Rio Grande Housing Finance Corp. Texas S/F
Revenue (Floaters -- Series 709) VRDN 1.22%
due 08/02/2004 (a) ................................ 4,700,000
See Notes to Financial Statements.
93
- ------------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ------------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------
Texas $11,900,000 Midlothian, Texas IDC PCR (Box -- Crow Cement
(continued) Co. Project) VRDN 1.09% due 12/01/2009 (a) ............... $11,900,000
730,000 Montgomery County, Texas IDC Revenue (Sawyer
Research Products Inc.) VRDN 1.27%
due 02/04/2015 (a) ....................................... 730,000
13,460,000 Municipal Securities Trust Certificates -- Austin,
Texas (Class A -- Series 105) DDN 1.13%
due 06/08/2020 (a)(b) .................................... 13,460,000
12,780,000 Municipal Securities Trust Certificates -- Houston,
Texas Water (Class A -- Series 2001-111) DDN
1.13% due 05/07/2019 (a)(b) .............................. 12,780,000
6,000,000 Municipal Securities Trust Certificates -- Houston,
Texas Water (Class A -- Series 2001-111) DDN
1.13% due 05/17/2019 (a)(b) .............................. 6,000,000
35,735,000 Municipal Securities Trust Certificates -- Houston,
Texas Water (Class A -- Series 2001-123) DDN
1.13% due 02/24/2009 (a)(b) .............................. 35,735,000
8,015,000 Municipal Securities Trust Certificates San Antonio
Water (Class A -- Series 2001-131) DDN 1.13%
due 05/09/2017 (a)(b) .................................... 8,015,000
9,725,000 Municipal Securities Trust Certificates Perlin, Texas
(Independent School House Board -- Class A --
Series 2001-141) DDN 1.13% due 03/08/2017 (a)(b) ......... 9,725,000
5,357,950 Nortex, Texas Housing Finance Corp. S/F Mortgage
Revenue (Series A) FXRDN 1.13% due 01/02/2005. 5,357,950
North East, Texas Independent School District
VRDN:
6,900,000 (Putters -- Series 390) 1.13% due 02/01/2012 (a)(b) ...... 6,900,000
6,180,000 (Putters -- Series 393) 1.13% due 02/01/2012 (a)(b) ...... 6,180,000
10,100,000 North Texas Higher Educational Authority Student
Loan VRDN 1.13% due 03/01/2005 (a) ....................... 10,100,000
17,500,000 North Texas Higher Educational Authority (Student
Loan -- Series 93-A) VRDN 1.13%
due 04/01/2005 (a) ....................................... 17,500,000
See Notes to Financial Statements.
94
Schedule
vestments -- Continue
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -------------------------------------------------------------------------------------------------------
Texas $ 4,330,000 North Texas Turnway Authority Dallas (North
(continued) Turnway System Revenue ROCS RR II R 4008)
VRDN 1.15% due 01/01/2025 (a)(b) ..................... $ 4,330,000
42,100,000 Nueces River, Texas Industrial Development Authority
PCR (San Miguel Electric Co-op) CP 1.06%
due 06/01/2004 ....................................... 42,100,000
7,000,000 Plano, Texas Independent School District (ROCS RR
II R 2106) VRDN 1.15% due 02/15/2018 (a)(b) .......... 7,000,000
15,000,000 Port Arthur, Texas Naval District Revenue (Series B)
VRDN 1.18% due 05/01/2038 (a) ........................ 15,000,000
10,000,000 Port Arthur, Texas Naval District Revenue (Atofina
Project -- Series B) VRDN 1.18%
due 05/01/2038 (a) ................................... 10,000,000
10,000,000 Port Arthur, Texas Naval District IDC (Air Products
& Chemicals Project) VRDN 1.16%
due 04/01/2035 (a) ................................... 10,000,000
22,035,000 Port Arthur, Texas Naval District Enivronmental
Facilities Revenue (Motiva Enterprises Project)
VRDN 1.25% due 12/01/2027 (a) ........................ 22,035,000
25,000,000 Port Corpus Christi, Texas Solid Waste Disposal
Revenue (Flint Hills -- Series A) VRDN 1.43%
due 07/01/2029 (a) ................................... 25,000,000
25,600,000 San Antonio, Texas Educational Facilities Corp.
Revenue (Trinity University) DDN 1.10%
due 06/01/2033 (a) ................................... 25,600,000
2,306,234 Southeast, Texas Housing Finance Corp. S/F Mortgage
Revenue (Series A) VRDN 1.14%
due 04/01/2005 (a) ................................... 2,306,234
9,603,895 Southeast, Texas Housing Finance Corp. S/F Mortgage
Revenue FXRDN 1.08% due 04/01/2005 ................... 9,603,895
16,785,000 Tarrant County, Texas Health Facilities Development
Corp. Revenue (Cumberland Rest Project) DDN
1.12% due 08/15/2032 (a) ............................. 16,785,000
See Notes to Financial Statements.
95
- -----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------
Texas $ 3,415,000 Texas State Affordable Housing Corp. M/F Revenue
(continued) (Floaters -- Series 780) VRDN 1.14%
due 09/01/2022 (a)(b) ................................$ 3,415,000
22,000,000 Texas State College Student Loan FXRDN 0.95%
due 07/01/2004 ........................................ 21,973,489
15,000,000 Texas State Department Housing & Community
Affairs M/F Revenue (Arlington Villas -- Series A)
VRDN 1.15% due 12/01/2036 (a) ......................... 15,000,000
3,860,000 Texas State Department Housing & Community
Affairs S/F VRDN 1.20% due 09/01/2028 (a) ............. 3,860,000
7,685,000 Texas State Department Housing & Community
Affairs S/F CP 1.00% due 05/03/2004 ................... 7,685,000
13,530,000 Texas State Housing Agency Mortgage Revenue S/F
(Series A) CP 1.13% due 05/03/2004 .................... 13,530,000
3,590,000 Texas State (ROCS-RR-II-R-4020) VRDN 1.15%
due 10/01/2022 (a)(b) ................................. 3,590,000
279,000,000 Texas State TRAN 2.00% due 08/31/2004 ................. 279,763,175
11,435,000 Texas State Municipal Securities Trust Receipts (SGA
92) DDN 1.13% due 08/01/2029 (a)(b) ................... 11,435,000
5,120,000 Texas State Turnpike Authority Revenue (Putters --
Series 325) VRDN 1.17% due 08/15/2027 (a)(b) .......... 5,120,000
3,370,000 Texas State Turnpike Authority Revenue (Putters --
Series 421) VRDN 1.17% due 08/15/2030 (a)(b) .......... 3,370,000
6,000,000 Texas State Veterans Housing (Fund II -- Series A-2)
VRDN 1.11% due 06/01/2033 (a) ......................... 6,000,000
28,275,000 Travis County, Texas Housing Finance Corp. S/F
Mortgage Revenue FXRDN 1.27% due 10/01/2004. 28,275,000
7,130,000 Trinity River Authority Texas Solid Waste Disposal
Revenue (Community Waste Disposal Project)
VRDN 1.12% due 05/01/2021 (a) ......................... 7,130,000
4,000,000 University of Texas, University Revenue VRDN
1.12% due 04/15/2034 (a) .............................. 4,000,000
21,995,000 University of Texas, University Revenue (Series 97)
VRDN 1.14% due 08/15/2019 (a) ......................... 21,995,000
4,890,000 Williamson County, Texas (Putters -- Series 410)
VRDN 1.13% due 02/15/2012 (a)(b) ...................... 4,890,000
- -----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
96
- ----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ----------------------------------------------------------------------------------------------------------
Utah -- 1.9% $31,000,000 Emery County, Utah PCR (Pacificorp Projects) DDN
1.10% due 11/01/2024 (a) .............................. $31,000,000
3,385,000 Logan City, Utah Revenue (Integrated System Inc. --
Series A) VRDN 1.26% due 06/01/2014 (a) ............... 3,385,000
37,000,000 Murray City, Utah Hospital Revenue (IHC Health
Services Inc. -- Series B) VRDN 1.08%
due 05/15/2036 (a) .................................... 37,000,000
Utah Housing Corp. S/F Mortgage Revenue VRDN:
46,760,000 (Series 4) 1.14% due 07/01/2034 (a) ................... 46,760,000
9,860,000 (Series D-1) 1.14% due 01/01/2033 (a) ................. 9,860,000
14,790,000 (Series F-1) 1.14% due 01/01/2034 (a) ................. 14,790,000
11,245,000 Utah State Housing Finance Agency (Series - 2)
VRDN 1.14% due 07/01/2032 (a) ......................... 11,245,000
Utah Water Finance Agency Revenue VRDN:
12,100,000 (Series A-4) 1.14% due 07/01/2029 (a) ................. 12,100,000
7,450,000 (Series A-5) 1.17% due 10/01/2027 (a) ................. 7,450,000
13,150,000 (Series A-6) 1.17% due 10/01/2030 (a) ................. 13,150,000
12,000,000 (Series A-8) 1.14% due 07/01/2032 (a) ................. 12,000,000
9,000,000 (Series A-9) 1.14% due 07/01/2034 (a) ................. 9,000,000
- ----------------------------------------------------------------------------------------------------------
Vermont -- 1,525,000 Vermont EDA IDR (Huber & Suhner -- Series A)
0.0% VRDN 1.15% due 10/01/2016 (a) ......................... 1,525,000
- ----------------------------------------------------------------------------------------------------------
Virginia -- 1.0% 7,000,000 Charles City County, Virginia EDA Solid Waste
Disposal Revenue (Waste Management Inc.
Project -- Series A) VRDN 1.15%
due 02/01/2029 (a) .................................... 7,000,000
10,935,000 Fairfax County, Virginia EDA Student Housing
Revenue (George Mason Unified Foundation
Incorporated Project) VRDN 1.09%
due 02/01/2029 (a) .................................... 10,935,000
3,395,000 Hampton, Virginia IDA Exempt Facilities Revenue
(USA Waste of Virginia Landfills) VRDN 1.16%
due 04/01/2013 (a) .................................... 3,395,000
10,000,000 Municipal Securities Trust Certificates (Upper
Occoquan Sewer Authority Virginia -- Class A --
Series 2001-159) DDN 1.13% due 03/19/2015 (a)(b) ...... 10,000,000
See Notes to Financial Statements.
97
- ----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ----------------------------------------------------------------------------------------------------------
Virginia $ 56,000,000 Norfolk, Virginia IDA Revenue (Series 1990-A) CP
(continued) 0.95% due 05/07/2004 ................................. $56,000,000
6,000,000 Norfolk, Virginia Redevelopment & Housing
Authority Revenue (Old Dominion University
Project -- Series B) VRDN 1.10%
due 08/01/2033 (a) ................................... 6,000,000
11,385,000 Suffolk, Virginia IDA Residential Care Facilities
Revenue (Lake Prince Center Project) VRDN 1.23%
due 10/01/2031 (a) ................................... 11,385,000
- ----------------------------------------------------------------------------------------------------------
Washington -- 5,000,000 ABN-AMRO Muni Tops 2001-01 -- King County,
2.0% Washington VRDN 1.18% due 07/01/2006 (a)(b) .......... 5,000,000
6,600,000 Clark County, Washington Public Utilities District
(Merlots -- Series A -- 03) VRDN 1.15%
due 01/01/2010 (a)(b) ................................ 6,600,000
26,745,000 Eagle Tax-Exempt Trust -- Port of Seattle,
Washington Passenger Facility Charge (Series
984705) VRDN 1.15% due 12/01/2019 (a)(b) ............. 26,745,000
14,680,000 Eagle Tax-Exempt Trust -- Washington State Public
Power Supply System (Nuclear Project Number 1 --
Series 964702) VRDN 1.15%
due 07/01/2011 (a)(b) ................................ 14,680,000
3,535,000 Grant County, Washington Public Utilities District No.
002 (Electric Revenue ROCS RR II R 2039) VRDN
1.15% due 01/01/2019 (a)(b) .......................... 3,535,000
5,000,000 Lynnwood Public Facilities District Revenue CP
1.00% due 05/05/2004 ................................. 5,000,000
23,600,000 Municipal Securities Trust Certificate (Washington
State Motor Vehicle fuel -- Class A -- Series
2001-112) DDN 1.13% due 01/07/2021 (a)(b) ............ 23,600,000
4,340,000 Pierce County, Washington School District
(Puyallup ROCS RR II R 2096) VRDN 1.15%
due 12/01/2023 (a) ................................... 4,340,000
2,665,000 Port Seattle, Washington (Putters -- Series 391)
VRDN 1.16% due 05/01/2008 (a) ........................ 2,665,000
See Notes to Financial Statements.
98
- ----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ----------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ----------------------------------------------------------------------------------------------------------
Washington $ 5,740,000 Port Tacoma, Washington Revenue (Merlots -- Series
(continued) A-123) VRDN 1.20% due 12/01/2008 (a)(b) ............ $ 5,740,000
3,490,000 Seattle, Washington Housing Authority Revenue
(Wedgewood Estates Project) VRDN 1.17%
due 09/01/2036 (a) ................................. 3,490,000
2,420,000 Seattle, Washington Housing Authority Revenue
(Newholly Project -- Phase III) VRDN 1.17%
due 12/01/2034 (a) ................................. 2,420,000
9,680,000 Seattle, Washington Municipal Light & Power
Revenue (Municipal Securities Trust -- SGA 85)
DDN 1.13% due 10/01/2023 (a)(b) .................... 9,680,000
10,000,000 Snohomish County, Washington Public Utility District
(#001 Electric Revenue Municipal Securities Trust
Receipts -- SGA -- 124) DDN 1.13%
due 12/01/2024 (a)(b) .............................. 10,000,000
5,490,000 Snohomish County, Transit Infrastructure Bank
Revenue (Putter -- Series 316) VRDN 1.15%
due 12/01/2027 (a)(b) .............................. 5,490,000
8,750,000 Washington State Economic Development Finance
Authority EDR (Mount Ainstar Resort -- Series C)
DDN 1.20% due 10/01/2023 (a) ....................... 8,750,000
4,000,000 Washington State Economic Development Finance
Authority Solid Waste Disposal Revenue (Waste
Management Inc. Project -- Series D) VRDN
1.15% due 07/01/2027 (a) ........................... 4,000,000
22,060,000 Washington State Health Care Facilities Authority
Revenue (Catholic Health -- Series B) VRDN
1.11% due 03/01/2032 (a) ........................... 22,060,000
18,135,000 Washington State Housing Finance Community
Nonprofit Housing Revenue (Kenney Home Project)
VRDN 1.13% due 12/01/2031 (a) ...................... 18,135,000
5,715,000 Washington State Certificate Trust Floats -- Austin
Trust (Series 2002-C) GO VRDN 1.17%
due 07/01/2023 (a)(b) .............................. 5,715,000
15,985,000 Washington State (Floaters -- Series 2000-389) GO
VRDN 1.14% due 07/01/2018 (a)(b) ................... 15,985,000
See Notes to Financial Statements.
99
- -----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------
Washington $ 5,255,000 Washington State GO (Merlots -- Series A-05) VRDN
(continued) 1.15% due 01/01/2013 (a)(b) ........................ $ 5,255,000
6,330,000 Washington State GO (Merlots -- Series A-101)
VRDN 1.15% due 07/01/2019 (a)(b) ................... 6,330,000
- -----------------------------------------------------------------------------------------------------
West Virginia -- 2,825,000 Cabell County, West Virginia Building Community
0.1% Revenue (Pressley Ridge School Project) VRDN
1.16% due 08/01/2022 (a) ........................... 2,825,000
3,865,000 West Virginia University Revenue (Merlots -- Series
A-15) VRDN 1.15% due 04/01/2028 (a)(b) ............. 3,865,000
- -----------------------------------------------------------------------------------------------------
Wisconsin -- 18,985,000 ABN-AMRO Muni Tops 2001-32 -- Wisconsin State
5.2% VRDN 1.18% due 05/01/2022 (a)(b) ................... 18,985,000
15,000,000 Appleton, Wisconsin Redevelopment Authority
Revenue (Fox Cities Arts Center -- Series B) VRDN
1.18% due 06/01/2036 (a) ........................... 15,000,000
1,300,000 Janesville, Wisconsin IDR (Lamson & Session Co.
Project) VRDN 1.23% due 09/01/2007 (a) ............. 1,300,000
7,200,000 Middleton-Cross Plains Area School District,
Wisconsin (Formerly Middleton City Cross Plains)
TRAN 2.00% due 08/24/2004 .......................... 7,220,803
15,400,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Cathedral Place Package Facilities Project)
VRDN 1.16% due 05/01/2025 (a) ...................... 15,400,000
4,125,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Wisconsin Humane Society Inc. Project)
VRDN 1.24% due 03/01/2019 (a) ...................... 4,125,000
10,695,000 Milwaukee, Wisconsin Redevelopment Authority
Revenue (Milwaukee YMCA Project) DDN 1.15%
due 07/01/2034 (a) ................................. 10,695,000
6,000,000 Plymouth, Wisconsin IDR (Great Lake Cheese Inc.
Project) VRDN 1.21% due 08/01/2004 (a) ............. 6,000,000
3,075,000 Sturtevant, Wisconsin IDR (Andis Co. Project --
Series A) VRDN 1.32% due 12/01/2016 (a) ............ 3,075,000
4,750,000 Sun Praire, Wisconsin Area School District BAN
1.60% due 10/06/2004 ............................... 4,758,571
See Notes to Financial Statements.
100
- -----------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- -----------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------
Wisconsin $ 2,900,000 Waukesha, Wisconsin Housing Authority Revenue
(continued) (Hart Park Square Project) VRDN 1.23%
due 03/01/2034 (a) ................................ $2,900,000
12,745,000 West Allis, Wisconsin Revenue State Fair Park
Exposition VRDN 1.15% due 08/01/2028 (a) .......... 12,745,000
5,000,000 West Allis & West Milwaukee, Wisconsin School
District TRAN 1.88% due 09/24/2004 ................ 5,015,319
5,900,000 Wisconsin Rural Water Construction Loan Program
Community RAN 2.00% due 10/15/2004 ................ 5,921,876
12,500,000 Wisconsin School District (Cash Flow Management
Program Certificate Partnership -- Series A-1)
TRAN 2.00% due 09/22/2004 ......................... 12,543,742
19,120,000 Wisconsin State (Series 1) FXRDN 1.06%
due 05/25/2004 .................................... 19,120,000
Wisconsin State CP:
22,500,000 (Series 1997) 0.97% due 05/07/2004 ................ 22,500,000
8,600,000 (Series 1998-A) 0.98% due 05/07/2004 .............. 8,600,000
11,250,000 (Series 1998-A) 0.97% due 06/01/2004 .............. 11,250,000
20,000,000 (Series 1999-B) 0.96% due 07/15/2004 .............. 20,000,000
18,000,000 (Series 2000-A) 1.00% due 05/05/2004 .............. 18,000,000
10,000,000 (Series 2000-B) 1.06% due 05/24/2004 .............. 10,000,000
21,560,000 (Series 2000-B) 1.00% due 05/03/2004 .............. 21,560,000
34,380,000 (Series 2000-C) 1.00% due 05/07/2004 .............. 34,380,000
28,913,000 (Series 2000-C) 1.00% due 06/01/2004 .............. 28,913,000
10,435,000 (Series 2002-A) 1.00% due 05/07/2004 .............. 10,435,000
Wisconsin State Petroleum Inspection Fee Revenue
Bonds CP:
30,000,000 1.00% due 05/03/2004 .............................. 30,000,000
16,300,000 1.00% due 05/06/2004 .............................. 16,300,000
12,500,000 1.07% due 05/25/2004 .............................. 12,500,000
67,500,000 1.01% due 06/01/2004 .............................. 67,500,000
10,000,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Agnesian Healthcare Project)
DDN 1.15% due 06/01/2033 (a) ...................... 10,000,000
See Notes to Financial Statements.
101
- ---------------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ---------------------------------------------------------------------------------------------------------------
Value
Face Amount Issue (Note 1a)
- ---------------------------------------------------------------------------------------------------------------
Wisconsin $18,170,000 Wisconsin State Health & Educational Facilities
(continued) Authority Revenue (Wisconsin Lutheran College
Project) DDN 1.15% due 06/01/2033 (a) ...................... $ 18,170,000
11,250,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Gunersen Lutheran -- Series A)
DDN 1.10% due 12/01/2015 (a) ............................... 11,250,000
9,200,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Wheaton Franciscan Service)
VRDN 1.10% due 08/15/2016 (a) .............................. 9,200,000
40,390,000 Wisconsin State Health & Educational Facilities
Authority Revenue (Prohealth Incorporated --
Series B) DDN 1.10% due 08/15/2030 (a) ..................... 40,390,000
16,600,000 Wisconsin State Health & Educational Facilities
Authority Revenue (SSM Health Care -- Series
98-B) DDN 1.15% due 12/01/2032 (a) ......................... 16,600,000
9,935,000 Wisconsin State Housing & EDA (Home Ownership
Revenue -- Series B) VRDN 1.11%
due 09/01/2034 (a) ......................................... 9,935,000
- ---------------------------------------------------------------------------------------------------------------
Wyoming -- Laramie County, Wyoming IDR (Cheyenne Light Fuel
0.1% & Power Co.) VRDN:
3,500,000 (Series 97-B) 1.27% due 09/01/2021 (a) ..................... 3,500,000
5,000,000 (Series 97-A) 1.27% due 03/01/2027 (a) ..................... 5,000,000
- ---------------------------------------------------------------------------------------------------------------
Total Investments (Cost $10,936,085,084) -- 99.2% ............ $10,936,085,084
- ---------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.8% ........................ 89,343,439
- ---------------------------------------------------------------------------------------------------------------
Net Assets ................................................... $11,025,428,523
===============================================================================================================
(a) The interest rate is subject to change periodically based on a certain
index. The rates shown are those in effect at April 30, 2004. For variable
rate demand instruments, the next coupon date on which the interest is to
be adjusted is deemed the maturity date for valuation.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1993. These securities may be resold in transactions exempt from
registration normally to qualified institutional buyers. At period end, the
value of these securities amounted to $1,546,690,299 or 14.0% of net
assets.
Note -- Cost for federal income tax purposes is $10,936,079,766.
See Notes to Financial Statements.
102
- ----------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Schedule of Investments -- Continued
April 30, 2004
- ----------------------------------------------------------------------------------------------------------
Portfolio Abbreviations for Merrill Lynch Institutional Tax-Exempt
BAN Bond Anticipation Notes GO General Obligation PCR Pollution Control Revenue
CP Commercial Paper IDA Industrial Development RAN Revenue Anticipation Notes
Authority
DDN Daily Demand Notes IDB Industrial Development Board S/F Single Family
EDA Economic Development IDC Industrial Development TAN Tax Anticipation Notes
Authority Corporation
EDR Economic Development IDR Industrial Development Revenue TRAN Tax Revenue Anticipation
Revenue Notes
FXRDN Fixed Rate Demand Notes M/F Multi-Family VRDN Variable Rate Demand Notes
- ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
103
- -------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Statement of Assets and Liabilities
April 30, 2004
- -------------------------------------------------------------------------------------
Assets:
Total investments, at amortized cost and value (Note 1a) ......... $10,936,085,084
Cash ............................................................. 5,555,392
Receivable for investments sold .................................. 48,913,441
Interest receivable .............................................. 35,451,957
---------------
Total assets .................................................. 11,026,005,874
---------------
Liabilities:
Advisory fee payable (Note 2) .................................... 553,442
Accrued expenses ................................................. 23,909
---------------
Total liabilities ............................................. 577,351
---------------
Net Assets applicable to investors' interests .................... $11,025,428,523
===============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals .......... $11,025,428,523
===============
- -------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund
Statement of Operations
For the Year Ended April 30, 2004
- -------------------------------------------------------------------------------------
Investment Income:
Interest and discount earned ..................................... $107,909,043
------------
Expenses:
Investment advisory fee (Note 2) ................................. 5,097,799
Accounting and custodian services ................................ 211,980
Dividend and transfer agency fee ................................. 52,228
------------
Total expense ................................................. 5,362,007
------------
Net investment income ......................................... 102,547,036
Net realized gain from investment transactions ................ 160,308
------------
Net Increase in Net Assets Resulting From Operations ............. $102,707,344
============
See Notes to Financial Statements.
104
- ----------------------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund Year Ended April 30,
Statements of Changes in Net Assets --------------------------------------
2004 2003
- ----------------------------------------------------------------------------------------------------------------------
Increase in Net assets:
Operations:
Net investment income ...................................................... $ 102,547,036 $ 89,204,351
Net realized gain from investment transactions ............................. 160,308 15,224
---------------- ----------------
Net increase in net assets resulting from operations ....................... 102,707,344 89,219,575
Capital Transactions:
Contributions from feeders ................................................. 10,929,810,015 9,052,485,752
Withdrawals from feeders ................................................... (8,194,309,836) (5,428,495,522)
---------------- ----------------
Net increase in net assets from capital transactions ....................... 2,735,500,179 3,623,990,230
---------------- ----------------
Net increase in net assets ................................................. 2,838,207,523 3,713,209,805
Net Assets:
Beginning of year .......................................................... 8,187,221,000 4,474,011,195
---------------- ----------------
End of year ................................................................ $ 11,025,428,523 $ 8,187,221,000
================ ================
- ----------------------------------------------------------------------------------------------------------------------
Master Institutional Tax-Exempt Fund Year Ended April 30, For the Period
Supplementary Data ---------------------------- January 14, 2002*
2004 2003 to April 30, 2002
- ----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets ...................... .05% .05% .05%(1)
Ratio of net investment income to average net assets ......... 1.01% 1.36% 1.47%(1)
Net Assets, end of period (000) .............................. $11,025,429 $8,187,221 $4,474,011
(1) On an annualized basis
* Commencement of Operations
See Notes to Financial Statements.
105
- --------------------------------------------------------------------------------
Master Institutional Money Market Trust
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Master Institutional Money Market Trust (the "Master Trust") is organized as a
business trust under the laws of the State of Delaware and is registered under
the Investment Company Act of 1940 as an open-end management company. The
Declaration of Trust permits the Trustees to issue unlimited beneficial
interests in the Master Trust. Beneficial interests in the Master Trust are
issued solely in private placement transactions to accredited investors. The
Master Trust consists of three series, Master Premier Institutional Fund,
Master Institutional Fund, and Master Institutional Tax-Exempt Fund,
(collectively, the "Master Funds").
The Master Trust's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, which
may require management to make certain estimates and assumptions at the date of
the financial statements. The following is a summary of significant accounting
policies consistently followed by the Master Trust in conformity with
accounting principles generally accepted in the United States of America.
(a) The value of the Master Premier Institutional and Master Institutional
Funds' portfolio securities is determined on the basis of fair value as
determined in good faith by the Board of Trustees (the "Trustees") of the
Master Trust. In determining fair value, securities for which market quotations
are readily available are valued at market value. Other securities, if any, are
valued at their fair value in the best judgement of Fund Asset Management, L.P.
("FAM") under procedures established by, and under the supervision of, the
Trustees. Securities with remaining maturities of 60 days or less are valued by
use of the amortized cost method. Master Institutional Tax-Exempt portfolio
securities are carried at amortized cost which approximates market value.
For the purpose of valuation, the maturity of a variable rate demand
instrument is deemed to be the next coupon date on which the interest rate is
to be adjusted. In the case of a floating rate instrument, the remaining
maturity is deemed to be the demand notice payment period.
The general partner of FAM is Princeton Services, Inc. ("PSI"), an
indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML&Co."),
which is the limited partner.
(b) The Master Funds are treated as partnerships for Federal tax purposes.
No provision is made by the Master Funds for federal or state taxes on any
taxable income of the Master Funds because each investor in the Master Funds is
ultimately responsible for the payment of any taxes. Since the Master Funds'
investors are regulated investment companies that invest substantially all of
their assets in the Master Funds, the Master Funds normally must satisfy the
applicable source of income and diversification requirements under the Internal
Revenue Code in order for their respective investors to satisfy them.
(c) Realized gains and losses on investments are computed on the basis of
identified cost of the security sold.
(d) Security transactions are accounted for on the date the securities are
purchased or sold (the trade date). Interest income (after adjustments for
amortization of premium or accretion of discount) is recorded as earned.
(e) Repurchase agreements -- The Master Premier Institutional Fund and the
Master Institutional Fund
106
- --------------------------------------------------------------------------------
Master Institutional Money Market Trust
Notes to Financial Statements -- Continued
- --------------------------------------------------------------------------------
(the "Funds") invest in U.S. Government & Agency securities pursuant to
repurchase agreements with member banks of the Federal Reserve System of
primary dealers in U.S. Government securities. Under such agreements, the bank
or primary dealer agrees to repurchase the security at a mutually agreed upon
time and price. The Funds take possession of the underlying securities, mark to
market such securities daily and, if necessary, receive additional securities
to ensure that the contract is adequately collateralized.
(f) Securities lending -- The Master Premier Institutional Fund and Master
Institutional Fund may lend securities to financial institutions that provide
cash or securities issued or guaranteed by the U.S. government as collateral,
which will be maintained at all times in an amount equal to at least 100% of
the current market value of the loaned securities. The market value of the
loaned securities is determined at the close of business of the Funds and any
additional required collateral is delivered to the Funds on the next business
day. Where the Funds receive securities as collateral for the loaned
securities, they collect a fee from the borrower. The Funds typically receive
the income on the loaned securities but do not receive the income on the
collateral. Where the Funds receive cash collateral, it may invest such
collateral and retain the amount earned on such investment, net of any amount
rebated to the borrower. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities within five
business days. The Funds may pay reasonable finder's, lending agent,
administrative and custodial fees in connection with their loans. In the event
that the borrower defaults on its obligation to return borrowed securities
because of insolvency or for any other reason, the Funds could experience
delays and costs in gaining access to the collateral. The Funds also could
suffer a loss where the value of the collateral falls below the market value of
the borrowed securities, in the event of borrower default or in the event of
losses on investments made with cash collateral.
2. Investment Advisory Fees and Other Transactions with Affiliates
FAM, a subsidiary of Merrill Lynch & Co., Inc. ("ML&Co."), manages each Master
Fund's investments under the overall supervision of The Board of Trustees of
The Master Trust. Each Master Fund pays FAM a fee at the annual rate of 0.05%
of average daily net assets.
The Funds have received an exemptive order from the Securities and
Exchange Commission permitting them to lend portfolio securities to Merrill
Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML&Co.,
or its affiliates. As of April 30, 2004, the Master Premier Institutional Fund
lent securities with a value of $3,266,700,000 to MLPF&S or its affiliates. The
Master Institutional Fund did not have any securities on loan at period end.
Pursuant to that order, the Funds have also retained Merrill Lynch Investment
Managers, LLC ("MLIM, LLC"), an affiliate of FAM, as the securities lending
agent for a fee based on a share of the returns on investment of cash
collateral. MLIM, LLC may, on behalf of the Funds, invest cash collateral
received by the Funds for such loans, among other things, in a private
investment company managed by MLIM, LLC or in registered money market funds
advised by FAM or it affiliates. For the period ended April 30, 2004, MLIM, LLC
received $4,591,366 in securities lending agent fees.
All officers and certain trustees of the Trust are affiliated with Merrill
Lynch & Co., Inc.
107
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Trustees and Investors of
Master Institutional Money Market Trust:
We have audited the accompanying statements of assets and liabilities of Master
Institutional Money Market Trust (the "Master Trust"), consisting of Master
Premier Institutional Fund, Master Institutional Fund, and Master Institutional
Tax-Exempt Fund (the "Master Funds"), each a separate series of the Master
Trust, including the schedules of investments, as of April 30, 2004, the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended and
the supplementary data for each of the three years in the period then ended.
These financial statements are the responsibility of the Master Trust's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of April 30, 2004, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of each
of the respective Master Funds of Master Institutional Money Market Trust as of
April 30, 2004, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended
and the supplementary data for each of the three years in the period then
ended, in conformity with accounting principles generally accepted in the
United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
June 21, 2004
108
- ---------------------------------------------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND PORTFOLIO MANAGERS
- ---------------------------------------------------------------------------------------------------------------------
Other
Position(s) Length Directorships
Held of Time Held by
Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Trustee
- ---------------------------------------------------------------------------------------------------------------------
Interested Trustee
- ---------------------------------------------------------------------------------------------------------------------
Terry K. Glenn* President 20 years Chairman, Americas Region since 2001, and None
800 Scudders Mill Road and Executive Vice President of FAM and MLIM
Plainsboro, NJ 08536 Trustee since 1983; President, Merrill Lynch Mutual
Age: 63 Funds since 1999; President of FAMD since
1986 and Director thereof since 1991;
Executive Vice President and Director of
Princeton Services, Inc. since 1993; President
of Princeton Administrators, L.P. since 1988;
Director of Financial Data Services ("FDS")
since 1985
- ---------------------------------------------------------------------------------------------------------------------
* Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which
FAM or MLIM acts as investment adviser. Mr. Glenn is an "interested person," as described in the Investment
Company Act, of the Fund based on his positions as Chairman (Americas Region) and Executive Vice President of
FAM and MLIM; President of FAMD; Executive Vice President of Princeton Services; and President of Princeton
Administrators, L.P. His term as Trustee is unlimited. As Fund President, Mr. Glenn serves at the pleasure of the
Board of Trustees.
- ---------------------------------------------------------------------------------------------------------------------
Other
Position(s) Length Directorships
Held of Time Held by
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee
- ---------------------------------------------------------------------------------------------------------------------
Independent Trustees
- ---------------------------------------------------------------------------------------------------------------------
David O. Beim Trustee 1 year Professor of Finance and Economics at the None
410 Uris Hall Columbia University Graduate School of
Columbia University Business since 1991; Chairman of Outward
New York, NY 10027 Bound U.S.A. since 1997; Chairman of Wave
Age: 62 Hill, Inc. since 1980.
- ---------------------------------------------------------------------------------------------------------------------
James T. Flynn Trustee 8 years Chief Financial Officer of J.P. Morgan & None
340 East 72nd Street Co., Inc. from 1990 to 1995 and an
New York, NY 10021 employee of J.P. Morgan in various capacities
Age: 64 from 1967 to 1995.
- ---------------------------------------------------------------------------------------------------------------------
W. Carl Kester Trustee 8 years James R. Williston Professor of Business None
Harvard Business Administration of Harvard University
School Graduate School of Business since 1997,
Morgan Hall having been MBA Class of 1958 Professor of
393 Soldiers Field Business Administration of Harvard
Boston, MA 02163 University Graduate School of Business
Age: 52 Administration since 1981; Independent
Consultant since 1978.
- ---------------------------------------------------------------------------------------------------------------------
109
- ---------------------------------------------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND PORTFOLIO MANAGERS -- (continued)
- ---------------------------------------------------------------------------------------------------------------------
Other
Position(s) Length Directorships
Held of Time Held by
Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Trustee
- ---------------------------------------------------------------------------------------------------------------------
Independent Trustees (continued)
- ---------------------------------------------------------------------------------------------------------------------
Karen P. Robards Trustee 1 year President of Robards & Company, a None
P.O. Box 9011 financial advisory firm, for more than five
Princeton, NJ 08543- years; Director of Enable Medical Corp.
9011 since 1996; Director of AtriCure, Inc. since
Age: 53 2000; Director of CineMuse Inc. from 1996
to 2000; Director of the Cooke Center for Learning
and Development, a not-for-profit organization,
since 1987.
- ---------------------------------------------------------------------------------------------------------------------
* The Trustee's term is unlimited.
- ---------------------------------------------------------------------------------------------------------------------
Fund Officers* and Portfolio Managers
- ---------------------------------------------------------------------------------------------------------------------
Barry F.X. Smith
Senior Vice President
John Ng
Vice President & Portfolio Manager
Kevin Schiatta
Vice President & Portfolio Manager
P. Michael Walsh
Vice President & Portfolio Manager
William M. Breen
Treasurer
Phillip S. Gillespie
Secretary
- ---------------------------------------------------------------------------------------------------------------------
* Officers of the Trust serve at the pleasure of the Board of Trustees.
- ---------------------------------------------------------------------------------------------------------------------
Further information about the Trust's Officers and Trustees is available in the Fund's Statement of Additional
Information, which can be obtained without charge by calling 1-800-225-1576.
- ---------------------------------------------------------------------------------------------------------------------
110
ADMINISTRATOR & DISTRIBUTOR
Merrill Lynch Funds Distributor, Inc.
One Financial Center-- 23rd Floor
Boston, Massachusetts 02111
INVESTMENT ADVISER
Fund Asset Management, L.P.
P.O. Box 9011
Princeton, New Jersey 08543-9011
CUSTODIAN & TRANSFER AGENT
State Street Bank & Trust Company
P.O. Box 8118
Boston, Massachusetts 02266-8118
LEGAL COUNSEL
Clifford Chance Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street
Boston, Massachusetts 02116
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Funds unless accompanied or preceded by the Funds'
current prospectus. Past performance results shown in this report should not be
considered a representation of future performance, which will fluctuate. An
investment in the Funds is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other Government agency. Although the Funds seek to
preserve the value of your investments at $1.00 per share, it is possible to
lose money by investing in the Funds. Statements and other information herein
are as dated and subject to change.
#40842
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of the
end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial officer
and principal accounting officer, or persons performing similar
functions. A copy of the code of ethics is available without charge
upon request by calling toll-free 1-800-MER-FUND (1-800-637-3863).
Item 3 - Audit Committee Financial Expert - The registrant's board of directors
has determined that (i) the registrant has the following audit
committee financial experts serving on its audit committee and (ii)
each audit committee financial expert is independent: (1) David O.
Beim, (2) W. Carl Kester, (3) James T. Flynn and (4) Karen P. Robards.
The registrant's board of directors has determined that David O. Beim,
W. Carl Kester and Karen P. Robards qualify as financial experts
pursuant to Item 3(c)(4) of Form N-CSR.
Mr. Beim has a thorough understanding of generally accepted accounting
principles, financial statements and internal control over financial
reporting as well as audit committee functions. For 25 years, Mr. Beim
was an investment banker actively engaged in financial analysis for
securities transactions and mergers. These transactions presented a
breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can reasonably
be expected to be raised by the Registrant's financial statements. Mr.
Beim has also been a professor of finance and economics at the Columbia
University Graduate School of Business for the past 11 years.
Prof. Kester has a thorough understanding of generally accepted
accounting principles, financial statements and internal control over
financial reporting as well as audit committee functions. Prof. Kester
has been involved in providing valuation and other financial consulting
services to corporate clients since 1978. Prof. Kester's financial
consulting services present a breadth and level of complexity of
accounting issues that are generally comparable to the breadth and
complexity of issues that can reasonably be expected to be raised by
the Registrant's financial statements.
Ms. Robards has a thorough understanding of generally accepted
accounting principles, financial statements and internal control over
financial reporting as well as audit committee functions. Ms. Robards
has been President of Robards & Company, a financial advisory firm,
since 1987. Ms. Robards was formerly an investment banker for more than
10 years where she was responsible for evaluating and assessing the
performance of companies based on their financial results. Ms. Robards
has over 30 years of experience analyzing financial statements. She
also is the member of the Audit Committees of two privately held
companies and a non-profit organization.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2004 - $25,900
Fiscal Year Ending April 30, 2003 - $26,900
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2004 - $33,900
Fiscal Year Ending April 30, 2003 - $39,900
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $35,000
Fiscal Year Ending April 30, 2003 - $33,000
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $7,300
Fiscal Year Ending April 30, 2003 - $7,300
Master Institutional Fund Fiscal Year Ending April 30, 2004 - $36,000
Fiscal Year Ending April 30, 2003 - $37,000
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2004 - $7,300
Fiscal Year Ending April 30, 2003 - $7,300
Master Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $60,000
Fiscal Year Ending April 30, 2003 - $64,000
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $7,300
Fiscal Year Ending April 30, 2003 - $7,300
(b) Audit-Related Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Master Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Master Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
(c) Tax Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2004 - $4,100
Fiscal Year Ending April 30, 2003 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2004 - $4,100
Fiscal Year Ending April 30, 2003 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $1,000
Fiscal Year Ending April 30, 2003 - $1,000
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $4,100
Fiscal Year Ending April 30, 2003 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Master Institutional Fund Fiscal Year Ending April 30, 2004 - $1,000
Fiscal Year Ending April 30, 2003 - $1,000
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2004 - $4,100
Fiscal Year Ending April 30, 2003 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
Master Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $1,000
Fiscal Year Ending April 30, 2003 - $1,000
The nature of the services include tax compliance, tax advice and tax planning.
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $4,100
Fiscal Year Ending April 30, 2003 - $4,100
The nature of the services include tax compliance, tax advice and tax planning.
(d) All Other Fees
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Master Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Master Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $0
Fiscal Year Ending April 30, 2003 - $0
(e)(1) The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the
registrant's affiliated service providers that relate directly to the
operations and the financial reporting of the registrant. Certain of
these non-audit services that the Committee believes are a) consistent
with the SEC's auditor independence rules and b) routine and recurring
services that will not impair the independence of the independent
accountants may be approved by the Committee without consideration on a
specific case-by-case basis ("general pre-approval"). However, such
services will only be deemed pre-approved provided that any individual
project does not exceed $5,000 attributable to the registrant or
$50,000 for the project as a whole. Any proposed services exceeding the
pre-approved cost levels will require specific pre-approval by the
Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board meeting.
(e)(2)
Merrill Lynch Treasury Fund 0%
Merrill Lynch Government Fund 0%
Master Institutional Tax-Exempt Fund 0%
Merrill Lynch Institutional Tax-Exempt Fund 0%
Master Institutional Fund 0%
Merrill Lynch Institutional Fund 0%
Master Premier Institutional Fund 0%
Merrill Lynch Premier Institutional Fund 0%
(f)
Merrill Lynch Treasury Fund Not Applicable
Merrill Lynch Government Fund Not Applicable
Master Institutional Tax-Exempt Fund Not Applicable
Merrill Lynch Institutional Tax-Exempt Fund Not Applicable
Master Institutional Fund Not Applicable
Merrill Lynch Institutional Fund Not Applicable
Master Premier Institutional Fund Not Applicable
Merrill Lynch Premier Institutional Fund Not Applicable
(g)
Merrill Lynch Treasury Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
Merrill Lynch Government Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
Master Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
Merrill Lynch Institutional Tax-Exempt Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
Master Institutional Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
Merrill Lynch Institutional Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
Master Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
Merrill Lynch Premier Institutional Fund Fiscal Year Ending April 30, 2004 - $17,002,957
Fiscal Year Ending April 30, 2003 - $17,600,292
(h) The registrant's audit committee has considered and determined that
the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling, controlled
by, or under common control with the investment adviser that provides
ongoing services to the registrant that were not pre-approved pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) -
Merrill Lynch Treasury Fund $541,640, 0%
Merrill Lynch Government Fund $541,640, 0%
Master Institutional Tax-Exempt Fund $541,640, 0%
Merrill Lynch Institutional Tax-Exempt Fund $541,640, 0%
Master Institutional Fund $541,640, 0%
Merrill Lynch Institutional Fund $541,640, 0%
Master Premier Institutional Fund $541,640, 0%
Merrill Lynch Premier Institutional Fund $541,640, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 10 - Controls and Procedures
10(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.
10(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 second fiscal half-year 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 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - See Item 2
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - 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 Funds for Institutions Series and Master Institutional
Money Market Trust
By: /s/ Terry K. Glenn
----------------------------
Terry K. Glenn,
President of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: June 18, 2004
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/ Terry K. Glenn
----------------------------
Terry K. Glenn,
President of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: June 18, 2004
By: /s/ William M. Breen
----------------------------
William M. Breen,
Chief Financial Officer of
Merrill Lynch Funds for Institutions Series and Master
Institutional Money Market Trust
Date: June 18, 2004